UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number811-04367
Columbia Funds Series Trust I
(Exact name of registrant as specified in charter)
225 Franklin Street
Boston, Massachusetts 02110
(Address of principal executive offices) (Zip code)
Christopher O. Petersen, Esq.
c/o Columbia Management Investment Advisers, LLC
225 Franklin Street
Boston, Massachusetts 02110
Ryan C. Larrenaga, Esq.
c/o Columbia Management Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
(Name and address of agent for service)
Registrant's telephone number, including area code: (800) 345-6611
Date of fiscal year end: October 31
Date of reporting period: October 31, 2019
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
Annual Report
October 31, 2019
Columbia Strategic
California Municipal Income Fund
Beginning on January 1, 2021, as
permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports like this one will no longer be sent by mail, unless you
specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (columbiathreadneedleus.com/investor/), and each time a report is posted you will be notified
by mail and provided with a website address to access the report.
If you have already elected to
receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically
at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, for Fund shares held directly with the Fund, by calling 800.345.6611 or by enrolling in “eDelivery” by logging
into your account at columbiathreadneedleus.com/investor/.
You may elect to receive all future
reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue receiving paper copies of your shareholder reports. If you
invest directly with the Fund, you can call 800.345.6611 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive paper reports will apply to all Columbia
Funds held in your account if you invest through a financial intermediary or all Columbia Funds held with the fund complex if you invest directly with the Fund.
Not FDIC Insured • No bank
guarantee • May lose value
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Columbia Strategic California
Municipal Income Fund (the Fund) mails one shareholder report to each shareholder address, unless such shareholder elected to receive shareholder reports from the Fund electronically. If you would like more than one
report, please call shareholder services at 800.345.6611 and additional reports will be sent to you.
Proxy voting policies and
procedures
The policy of the Board of Trustees
is to vote the proxies of the companies in which the Fund holds investments consistent with the procedures as stated in the Statement of Additional Information (SAI). You may obtain a copy of the SAI without charge by
calling 800.345.6611; contacting your financial intermediary; visiting columbiathreadneedleus.com/investor/; or searching the website of the Securities and Exchange Commission (SEC) at sec.gov. Information regarding
how the Fund voted proxies relating to portfolio securities is filed with the SEC by August 31st for the most recent 12-month period ending June 30th of that year, and is available without charge by visiting
columbiathreadneedleus.com/investor/, or searching the website of the SEC at sec.gov.
Quarterly schedule of
investments
The Fund files a complete schedule
of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT, and for reporting periods ended prior to March 31, 2019, on Form N-Q. The Fund’s Form N-Q and 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-Q or Form N-PORT, can also be obtained without charge, upon request, by calling
800.345.6611.
Additional Fund information
For more information about the
Fund, please visit columbiathreadneedleus.com/investor/ or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 7 p.m. Eastern time.
Fund investment manager
Columbia Management Investment Advisers, LLC (the
Investment Manager)
225 Franklin Street
Boston, MA 02110
Fund distributor
Columbia Management Investment Distributors,
Inc.
225 Franklin Street
Boston, MA 02110
Fund transfer agent
Columbia Management Investment Services Corp.
P.O. Box 219104
Kansas City, MO 64121-9104
Columbia Strategic California Municipal Income
Fund | Annual Report 2019
Investment objective
The Fund
seeks total return, with a focus on income exempt from federal income tax and California individual income tax and capital appreciation.
Portfolio management
Douglas White, CFA
Lead Portfolio Manager
Managed Fund since 2018
Catherine Stienstra
Portfolio Manager
Managed Fund since 2010
Anders Myhran, CFA
Portfolio Manager
Managed Fund since 2016
Average annual total returns (%) (for the period ended October 31, 2019)
|
|
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Inception
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1 Year
|
5 Years
|
10 Years
|
Class A
|
Excluding sales charges
|
06/16/86
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9.31
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3.57
|
5.14
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Including sales charges
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6.00
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2.93
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4.82
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Advisor Class*
|
03/19/13
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9.59
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3.83
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5.31
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Class C
|
Excluding sales charges
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08/01/97
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8.82
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3.11
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4.67
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Including sales charges
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7.82
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3.11
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4.67
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Institutional Class
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09/19/05
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9.58
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3.83
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5.40
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Institutional 2 Class*
|
03/01/16
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9.59
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3.77
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5.25
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Institutional 3 Class*
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03/01/17
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9.63
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3.74
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5.23
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Bloomberg Barclays California Municipal Bond Index
|
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9.43
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3.55
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4.86
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Bloomberg Barclays Municipal Bond Index
|
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9.42
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3.55
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4.40
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Returns for Class A shares are shown
with and without the maximum initial sales charge of 3.00%. Returns for Class C shares are shown with and without the 1.00% contingent deferred sales charge for the first year only. The Fund’s other share
classes are not subject to sales charges and have limited eligibility. Please see the Fund’s prospectus for details. Performance for different share classes will vary based on differences in sales charges and
fees associated with each share class. All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the
redemption of Fund shares. Performance results reflect the effect of any fee waivers or reimbursements of Fund expenses by Columbia Management Investment Advisers, LLC and/or any of its affiliates. Absent these fee
waivers or expense reimbursement arrangements, performance results would have been lower.
The performance information shown
represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than
their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by contacting your financial
intermediary, visiting columbiathreadneedleus.com/investor/ or calling 800.345.6611.
*
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The returns shown for periods prior to the share class inception date (including returns for the Life of the Fund, if shown, which are since Fund inception) include the returns of the Fund’s oldest share
class. These returns are adjusted to reflect any higher class-related operating expenses of the newer share classes, as applicable. Please visit
columbiathreadneedleus.com/investor/investment-products/mutual-funds/appended-performance for more information.
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The Bloomberg Barclays California
Municipal Bond Index is a subset of the Bloomberg Barclays Municipal Bond Index consisting solely of bonds issued by obligors located in the state of California.
The Bloomberg Barclays Municipal
Bond Index is an unmanaged index considered representative of the broad market for investment-grade, tax-exempt bonds with a maturity of at least one year.
Indices are not available for
investment, are not professionally managed and do not reflect sales charges, fees brokerage commissions, taxes or other expenses of investing. Securities in the Fund may not match those in an index.
Columbia Strategic California Municipal Income Fund | Annual Report 2019
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3
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Fund at a Glance (continued)
Performance of a hypothetical $10,000 investment (October 31, 2009 — October 31, 2019)
The chart above shows the change in
value of a hypothetical $10,000 investment in Class A shares of Columbia Strategic California Municipal Income Fund during the stated time period, and does not reflect the deduction of taxes that a shareholder may pay
on Fund distributions or on the redemption of Fund shares.
Quality breakdown (%) (at October 31, 2019)
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AAA rating
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3.0
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AA rating
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41.0
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A rating
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25.9
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BBB rating
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19.2
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BB rating
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2.4
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Not rated
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8.5
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Total
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100.0
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Percentages indicated are based
upon total fixed income investments.
Bond ratings apply to the underlying
holdings of the Fund and not the Fund itself and are divided into categories ranging from highest to lowest credit quality, determined by using the middle rating of Moody’s, S&P and Fitch, after dropping the
highest and lowest available ratings. When ratings are available from only two rating agencies, the lower rating is used. When a rating is available from only one rating agency, that rating is used. When a bond is not
rated by any rating agency, it is designated as “Not rated.” Credit quality ratings assigned by a rating agency are subjective opinions, not statements of fact, and are subject to change, including daily.
The ratings assigned by credit rating agencies are but one of the considerations that the Investment Manager and/or Fund’s subadviser incorporates into its credit analysis process, along with such other
issuer-specific factors as cash flows, capital structure and leverage ratios, ability to de-leverage (repay) through free cash flow, quality of management, market positioning and access to capital, as well as such
security-specific factors as the terms of the security (e.g., interest rate and time to maturity) and the amount and type of any collateral.
4
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Columbia Strategic California Municipal Income Fund | Annual Report 2019
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Manager Discussion of Fund Performance
During the 12-month period that
ended October 31, 2019, the Fund’s Class A shares returned 9.31% excluding sales charges. The Fund’s Institutional Class shares returned 9.58%. During the same time period, the Fund performed in line with
the 9.43% return of its benchmark, the Bloomberg Barclays California Municipal Bond Index, as well as the 9.42% gain for the broader Bloomberg Barclays Municipal Bond Index. The Fund kept pace with its benchmark
largely due to our emphasis on long maturities and our decision to keep duration (interest-rate sensitivity) above that of the benchmark.
Market overview
Municipal bonds generated healthy
gains in the past 12 months, with nearly double-digit returns for both California and the nation as a whole. After experiencing poor performance throughout most of 2018, municipals began to rebound in early November
2018, thanks to the combination of slowing global growth, volatility in higher risk assets, and expectations that the U.S. Federal Reserve (Fed) would adopt a more accommodative stance. In addition, various
geopolitical factors — including the U.S-China trade dispute, Brexit negotiations, and the U.S. government shutdown — fueled a “flight to quality” into bonds.
The rally persisted into the New
Year, leading to the largest first-quarter gain for the tax-exempt market since 2014. The first quarter of 2019 was also the sixth-best for municipals in the past 30 years, due in part to the backdrop of slow global
growth and the increasingly accommodative policies of the world’s major central banks. Supply-and-demand factors were highly favorable, as well. Municipal bond mutual funds experienced record inflows, fueled by
strong demand resulting from the cap on state and local tax deductions in the Tax Cuts and Jobs Act of 2017. At the same time, new-issue supply was limited. Trends in the U.S. Treasury market were also supportive, as
yields fell in anticipation of a more accommodative Fed. These developments propelled municipals higher through the spring and summer.
In early September 2019, however,
the typical seasonal increase in supply, which was exacerbated by historically low costs for issuers, caused the rally to stall. Municipals suffered their first month of negative returns in 2019 as a result. The
market continued to trade in an uneven fashion through the end of October, as the Fed indicated that additional rate cuts would be dependent on incoming economic data.
California’s economy
continued to expand
California municipal bonds
performed in line with the national benchmark for the period. The state’s economy continued to benefit from the record U.S. expansion and the concurrent gains in the financial markets. Tax receipts grew due to
expanding economic activity, prompting Moody’s to upgrade the state’s credit rating in early October 2018. In explaining the rationale for the upgrade, the rating agency cited the ongoing “expansion
of the state’s massive, diverse and dynamic economy and corresponding growth in revenue.” However, there were signs of softening of the hottest housing markets in the areas around San Francisco and Los
Angeles during the latter half of the period.
Contributors and detractors
The Fund kept pace with its
benchmark largely due to our emphasis on long maturities and our decision to keep duration (interest-rate sensitivity) above that of the benchmark. This strategy helped the Fund capitalize on both falling yields and
the relative strength of longer term bonds.
The main contributors to
performance included an overweight in bonds with maturities of 17 to 30 years, as well as an underweight in the those with maturities of eight years and below. With respect to credit tiers, the Fund benefited from
overweights in BBB and non-rated issues, as well as selection among AA-rated securities. Overweights in the hospital and charter school sectors helped results, as did an underweight in state general obligation (GO)
debt. Security selection in the hospital, transportation, airport and continuing-care retirement community (CCRC) sectors further contributed.
On the negative side, selection in
the 17- to 22- and 25- to 30-year maturity ranges detracted from performance. Selection in non-rated bonds also pressured results, as did an overweight in CCRCs and an underweight in local GOs. Selection in the
leasing and housing sectors further detracted from relative performance. The Fund used U.S. Treasury futures for the purpose of duration management, which was also a modest detractor.
Columbia Strategic California Municipal Income Fund | Annual Report 2019
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5
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Manager Discussion of Fund Performance (continued)
Fund positioning
The U.S. domestic economy
appeared to be showing signs of continued expansion near the end of the period, causing the prior rally in municipals to stall. Tax-revenue growth in most states — California included — also began to slow
somewhat during this time. Although inflation appeared to remain in check, there were some indications of an increase in future expectations. In our view, these trends suggested to us that the economy may be at a
crossroads between a potential slowdown or recession on one hand, and continued moderate growth on the other.
Our general strategy over the past
12 months was to focus on longer maturities and higher quality issues, but with a selective approach to finding opportunities in lower quality debt. Due to strong inflows into municipal bond mutual funds, and
high-yield funds in particular, we were able to take advantage of the demand for lower quality securities by selling holdings in the charter school, higher education, health care and transportation sectors. We
redeployed the proceeds into higher quality positions across a variety of sectors, including local GO debt (particularly school districts), universities and airports. With the economy slowing, we saw a larger
probability of widening yield spreads for lower quality bonds.
The Fund’s duration was above
the benchmark at the end of October 2019, as the probability of declining interest rates had increased. This strategy represented a modest change from the previous fiscal year, during which we held a more defensive
duration positioning due to the stronger domestic economy and a greater risk of higher interest rates.
Fixed-income securities present
issuer default risk. The Fund invests substantially in municipal securities and will be affected by tax, legislative, regulatory, demographic or political changes, as well as changes impacting a state’s financial, economic or other
conditions. A relatively small number of tax-exempt issuers may necessitate the Fund investing more heavily in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly.
The value of the Fund’s portfolio may be more volatile than a more geographically diversified fund. Prepayment and extension risk exists because the timing of payments on a loan, bond or other investment may accelerate when interest rates fall or decelerate when interest rates rise
which may reduce investment opportunities and potential returns. A rise in interest rates may result in a price decline of fixed-income instruments held by the Fund, negatively impacting its performance and NAV. Falling rates may result in the Fund investing
in lower yielding debt instruments, lowering the Fund’s income and yield. These risks may be heightened for longer maturity and duration securities. Non-investment-grade (high-yield or junk) securities present greater price volatility and more risk to principal and income than higher rated securities. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. Federal and state tax rules apply to capital gain distributions and any gains or losses on sales. Income may be subject to state or local taxes. Liquidity risk is associated with the difficulty of selling underlying investments at a desirable time or price. See the Fund’s prospectus for more information on these and other
risks.
The views expressed in this report
reflect the current views of the respective parties. These views are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict, so actual outcomes and
results may differ significantly from the views expressed. These views are subject to change at any time based upon economic, market or other conditions and the respective parties disclaim any responsibility to update
such views. These views may not be relied on as investment advice and, because investment decisions for a Columbia fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf
of any particular Columbia fund. References to specific securities should not be construed as a recommendation or investment advice.
6
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Columbia Strategic California Municipal Income Fund | Annual Report 2019
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Understanding Your Fund’s
Expenses
(Unaudited)
As an investor, you incur two types
of costs. There are shareholder transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing fund costs, which generally include management fees,
distribution and/or service fees, and other fund expenses. The following information is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to help you compare these costs with
the ongoing costs of investing in other mutual funds.
Analyzing your Fund’s
expenses
To illustrate these ongoing
costs, we have provided examples and calculated the expenses paid by investors in each share class of the Fund during the period. The actual and hypothetical information in the table is based on an initial investment
of $1,000 at the beginning of the period indicated and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the
“Actual” column is calculated using the Fund’s actual operating expenses and total return for the period. You may use the Actual information, together with the amount invested, to estimate the
expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the results by the expenses paid during the period under
the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the
Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or
the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are
required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are
meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in
comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
May 1, 2019 — October 31, 2019
|
|
Account value at the
beginning of the
period ($)
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Account value at the
end of the
period ($)
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Expenses paid during
the period ($)
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Fund’s annualized
expense ratio (%)
|
|
Actual
|
Hypothetical
|
Actual
|
Hypothetical
|
Actual
|
Hypothetical
|
Actual
|
Class A
|
1,000.00
|
1,000.00
|
1,040.90
|
1,021.22
|
4.06
|
4.02
|
0.79
|
Advisor Class
|
1,000.00
|
1,000.00
|
1,040.80
|
1,022.48
|
2.78
|
2.75
|
0.54
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Class C
|
1,000.00
|
1,000.00
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1,038.50
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1,018.95
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6.37
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6.31
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1.24
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Institutional Class
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1,000.00
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1,000.00
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1,040.80
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1,022.48
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2.78
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2.75
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0.54
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Institutional 2 Class
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1,000.00
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1,000.00
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1,042.20
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1,022.53
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2.73
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2.70
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0.53
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Institutional 3 Class
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1,000.00
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1,000.00
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1,042.40
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1,022.84
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2.42
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2.40
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0.47
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Expenses paid during the period
are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period and then multiplied by the number of days in the Fund’s most recent fiscal
half year and divided by 365.
Expenses do not include fees and
expenses incurred indirectly by the Fund from its investment in underlying funds, including affiliated and non-affiliated pooled investment vehicles, such as mutual funds and exchange-traded funds.
Had Columbia Management Investment
Advisers, LLC and/or certain of its affiliates not waived/reimbursed certain fees and expenses, account value at the end of the period would have been reduced.
Columbia Strategic California Municipal Income Fund | Annual Report 2019
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7
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Portfolio of Investments
October 31, 2019
(Percentages represent value of
investments compared to net assets)
Investments in securities
Floating Rate Notes 1.2%
|
Issue Description
|
Effective
Yield
|
|
Principal
Amount ($)
|
Value ($)
|
Variable Rate Demand Notes 1.2%
|
New York City Water & Sewer System(a),(b)
|
Revenue Bonds
|
2nd General Resolution
|
Series 2012 (State Street Bank)
|
06/15/2032
|
1.340%
|
|
400,000
|
400,000
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State of California(a),(b)
|
Unlimited General Obligation Bonds
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Kindergarten
|
Series 2013A2 (State Street)
|
05/01/2034
|
0.950%
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6,410,000
|
6,410,000
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Total
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6,810,000
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Total Floating Rate Notes
(Cost $6,810,000)
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6,810,000
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Municipal Bonds 99.0%
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Issue Description
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Coupon
Rate
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Principal
Amount ($)
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Value ($)
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Air Transportation 1.0%
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California Municipal Finance Authority(c),(d)
|
Revenue Bonds
|
United Airlines, Inc. Project
|
Series 2019 AMT
|
07/15/2029
|
4.000%
|
|
5,000,000
|
5,671,450
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Airport 8.1%
|
City of Fresno Airport(c)
|
Refunding Revenue Bonds
|
Series 2013B AMT (BAM)
|
07/01/2028
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5.000%
|
|
500,000
|
559,725
|
07/01/2030
|
5.125%
|
|
1,050,000
|
1,177,680
|
City of Los Angeles Department of Airports(c)
|
Refunding Revenue Bonds
|
Subordinated Series 2019A AMT
|
05/15/2035
|
5.000%
|
|
3,795,000
|
4,719,386
|
05/15/2049
|
5.000%
|
|
5,000,000
|
6,037,350
|
Revenue Bonds
|
Los Angeles International Airport
|
Subordinated Series 2017 AMT
|
05/15/2041
|
5.000%
|
|
1,500,000
|
1,747,185
|
Subordinated Series 2018 AMT
|
05/15/2048
|
5.250%
|
|
3,000,000
|
3,640,380
|
Subordinated Series 2019 AMT
|
05/15/2044
|
4.000%
|
|
2,000,000
|
2,215,240
|
Subordinated Series 2018C AMT
|
05/15/2044
|
5.000%
|
|
2,000,000
|
2,382,260
|
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
County of Sacramento Airport System
|
Refunding Revenue Bonds
|
Subordinated Series 2016B
|
07/01/2041
|
5.000%
|
|
5,500,000
|
6,480,650
|
Norman Y. Mineta San Jose International Airport(c)
|
Refunding Revenue Bonds
|
Series 2017A AMT
|
03/01/2047
|
5.000%
|
|
3,000,000
|
3,512,460
|
San Francisco City & County Airport Commission - San Francisco International Airport(c)
|
Refunding Revenue Bonds
|
2nd Series 2011F AMT
|
05/01/2029
|
5.000%
|
|
5,210,000
|
5,488,058
|
SFO Fuel Company LLC
|
Series 2019 AMT
|
01/01/2047
|
5.000%
|
|
1,000,000
|
1,196,410
|
Revenue Bonds
|
San Francisco International Airport
|
Series 2016 AMT
|
05/01/2041
|
5.000%
|
|
1,305,000
|
1,511,307
|
Unrefunded Revenue Bonds
|
Series 2014A AMT
|
05/01/2044
|
5.000%
|
|
6,000,000
|
6,779,880
|
Total
|
47,447,971
|
Charter Schools 3.1%
|
California Public Finance Authority
|
Revenue Bonds
|
Laverne Elementary Prep Academy Project
|
Series 2019
|
06/15/2039
|
5.000%
|
|
870,000
|
896,605
|
06/15/2049
|
5.000%
|
|
1,400,000
|
1,437,128
|
California School Finance Authority(e)
|
Refunding Revenue Bonds
|
Aspire Public Schools
|
Series 2016
|
08/01/2041
|
5.000%
|
|
1,750,000
|
1,950,130
|
Revenue Bonds
|
Alliance College-Ready Public Schools
|
Series 2015
|
07/01/2035
|
5.000%
|
|
3,010,000
|
3,402,383
|
07/01/2045
|
5.000%
|
|
1,705,000
|
1,897,972
|
Green Dot Public School Project
|
Series 2015A
|
08/01/2035
|
5.000%
|
|
1,510,000
|
1,710,981
|
Series 2018
|
08/01/2048
|
5.000%
|
|
1,750,000
|
2,043,125
|
KIPP LA Projects
|
Series 2014A
|
07/01/2044
|
5.125%
|
|
1,000,000
|
1,105,260
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
8
|
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Series 2015A
|
07/01/2045
|
5.000%
|
|
1,000,000
|
1,118,730
|
Kipp SoCal Public Schools
|
Series 2019A
|
07/01/2049
|
5.000%
|
|
1,000,000
|
1,189,900
|
River Springs Charter School Project
|
Series 2015
|
07/01/2046
|
6.375%
|
|
1,000,000
|
1,160,840
|
07/01/2046
|
6.375%
|
|
155,000
|
179,930
|
Total
|
18,092,984
|
Disposal 0.7%
|
California Municipal Finance Authority(c)
|
Revenue Bonds
|
Waste Management, Inc. Project
|
Series 2019A AMT (Mandatory Put 10/01/29)
|
10/01/2044
|
2.400%
|
|
4,000,000
|
4,073,480
|
Higher Education 9.6%
|
California Educational Facilities Authority
|
Refunding Revenue Bonds
|
Loma Linda University
|
Series 2017A
|
04/01/2047
|
5.000%
|
|
4,250,000
|
4,961,493
|
Series 2018-A
|
12/01/2044
|
5.000%
|
|
2,000,000
|
2,412,560
|
University of the Pacific
|
Series 2015
|
11/01/2036
|
5.000%
|
|
2,000,000
|
2,370,400
|
Revenue Bonds
|
Chapman University
|
Series 2015
|
04/01/2040
|
5.000%
|
|
2,500,000
|
2,900,100
|
Stanford University
|
Series 2019V-1
|
05/01/2049
|
5.000%
|
|
8,450,000
|
12,943,963
|
California Municipal Finance Authority
|
Refunding Revenue Bonds
|
Biola University
|
Series 2017
|
10/01/2039
|
5.000%
|
|
1,000,000
|
1,180,860
|
California Lutheran University
|
Series 2018
|
10/01/2038
|
5.000%
|
|
300,000
|
362,322
|
Revenue Bonds
|
Biola University
|
Series 2013
|
10/01/2038
|
5.000%
|
|
1,000,000
|
1,106,420
|
10/01/2042
|
5.000%
|
|
2,360,000
|
2,595,268
|
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
National University
|
Series 2019A
|
04/01/2040
|
5.000%
|
|
1,000,000
|
1,223,040
|
04/01/2041
|
5.000%
|
|
2,000,000
|
2,440,000
|
California State University
|
Revenue Bonds
|
Series 2019A
|
11/01/2049
|
5.000%
|
|
10,000,000
|
12,486,400
|
California Statewide Communities Development Authority(e)
|
Refunding Revenue Bonds
|
California Baptist University
|
Series 2017A
|
11/01/2041
|
5.000%
|
|
1,875,000
|
2,158,406
|
Revenue Bonds
|
California Baptist University
|
Series 2014A
|
11/01/2043
|
6.375%
|
|
3,000,000
|
3,452,580
|
Lancer Plaza Project
|
Series 2013
|
11/01/2033
|
5.625%
|
|
1,400,000
|
1,581,132
|
11/01/2043
|
5.875%
|
|
1,875,000
|
2,108,663
|
Total
|
56,283,607
|
Hospital 15.1%
|
California Health Facilities Financing Authority
|
Refunding Revenue Bonds
|
El Camino Hospital
|
Series 2015A
|
02/01/2040
|
5.000%
|
|
5,000,000
|
5,735,000
|
Revenue Bonds
|
City of Hope Obligated Group
|
Series 2019
|
11/15/2045
|
4.000%
|
|
8,000,000
|
8,992,400
|
Dignity Health
|
Series 2009E
|
07/01/2025
|
5.625%
|
|
1,125,000
|
1,133,145
|
Series 2011A
|
03/01/2041
|
5.250%
|
|
3,000,000
|
3,138,270
|
El Camino Hospital
|
Series 2017
|
02/01/2047
|
5.000%
|
|
4,000,000
|
4,705,280
|
Kaiser Permanente
|
Subordinated Series 2017A-2
|
11/01/2044
|
4.000%
|
|
7,000,000
|
7,756,700
|
St. Joseph Health System
|
Series 2013A
|
07/01/2037
|
5.000%
|
|
2,000,000
|
2,244,980
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
9
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
California Municipal Finance Authority
|
Refunding Revenue Bonds
|
Community Medical Centers
|
Series 2015A
|
02/01/2040
|
5.000%
|
|
2,000,000
|
2,288,660
|
Series 2017A
|
02/01/2042
|
4.000%
|
|
2,000,000
|
2,164,280
|
02/01/2047
|
5.000%
|
|
2,000,000
|
2,316,560
|
California Public Finance Authority
|
Refunding Revenue Bonds
|
Henry Mayo Newhall Memorial Hospital
|
Series 2017
|
10/15/2047
|
5.000%
|
|
4,000,000
|
4,513,840
|
California Statewide Communities Development Authority
|
Refunding Revenue Bonds
|
Adventist Health System
|
Series 2018
|
03/01/2042
|
4.000%
|
|
5,000,000
|
5,441,400
|
03/01/2048
|
5.000%
|
|
5,000,000
|
5,960,050
|
Adventist Health System West
|
Series 2015
|
03/01/2035
|
5.000%
|
|
3,850,000
|
4,537,841
|
Huntington Memorial Hospital
|
Series 2014B
|
07/01/2044
|
5.000%
|
|
1,000,000
|
1,125,470
|
John Muir Health
|
Series 2018A
|
12/01/2053
|
5.000%
|
|
700,000
|
827,043
|
Redlands Community Hospital OB
|
Series 2016
|
10/01/2046
|
5.000%
|
|
1,000,000
|
1,153,190
|
Revenue Bonds
|
Green - Marin General Hospital Project
|
Series 2018
|
08/01/2038
|
5.000%
|
|
475,000
|
577,904
|
08/01/2045
|
4.000%
|
|
1,000,000
|
1,040,050
|
Henry Mayo Newhall Memorial Hospital
|
Series 2014A (AGM)
|
10/01/2043
|
5.250%
|
|
3,120,000
|
3,524,508
|
Loma Linda University Medical Center
|
Series 2014
|
12/01/2054
|
5.500%
|
|
2,660,000
|
2,963,745
|
Methodist Hospital of Southern California
|
01/01/2048
|
5.000%
|
|
7,500,000
|
8,764,500
|
California Statewide Communities Development Authority(e)
|
Revenue Bonds
|
Loma Linda University Medical Center
|
Series 2018
|
12/01/2058
|
5.500%
|
|
3,000,000
|
3,517,860
|
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
City of Upland
|
Refunding Certificate of Participation
|
San Antonio Regional Hospital
|
Series 2017
|
01/01/2042
|
4.000%
|
|
3,000,000
|
3,177,810
|
Washington Township Health Care District
|
Refunding Revenue Bonds
|
Series 2019A
|
07/01/2036
|
5.000%
|
|
500,000
|
604,725
|
07/01/2048
|
4.000%
|
|
500,000
|
533,315
|
Total
|
88,738,526
|
Human Service Provider 1.1%
|
California Municipal Finance Authority
|
Refunding Revenue Bonds
|
Harbor Regional Center Project
|
Series 2015
|
11/01/2039
|
5.000%
|
|
2,000,000
|
2,301,740
|
Inland Regional Center Project
|
Series 2015
|
06/15/2045
|
5.000%
|
|
3,500,000
|
3,965,290
|
Total
|
6,267,030
|
Local Appropriation 0.8%
|
Anaheim Public Financing Authority
|
Refunding Revenue Bonds
|
Series 2014A
|
05/01/2046
|
5.000%
|
|
1,000,000
|
1,138,080
|
City of Modesto
|
Certificate of Participation
|
Community Center Refinancing Project
|
Series 1993A (AMBAC)
|
11/01/2023
|
5.000%
|
|
1,090,000
|
1,132,783
|
Sacramento City Schools Joint Powers Financing Authority
|
Refunding Revenue Bonds
|
Series 2006A (BAM)
|
03/01/2040
|
5.000%
|
|
2,000,000
|
2,227,020
|
Total
|
4,497,883
|
Local General Obligation 9.8%
|
Alameda Unified School District-Alameda County
|
Unlimited General Obligation Bonds
|
Election of 2014
|
Series 2019C
|
08/01/2042
|
3.000%
|
|
1,000,000
|
1,016,400
|
Carlsbad Unified School District
|
Unlimited General Obligation Bonds
|
Election of 2018
|
Series 2019A
|
08/01/2048
|
3.125%
|
|
2,750,000
|
2,801,233
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
10
|
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Cerritos Community College District
|
Unlimited General Obligation Bonds
|
Series 2019C
|
08/01/2044
|
3.000%
|
|
5,000,000
|
5,065,300
|
Chaffey Joint Union High School District(f)
|
Unlimited General Obligation Bonds
|
Series 2019D
|
08/01/2034
|
0.000%
|
|
500,000
|
330,870
|
08/01/2035
|
0.000%
|
|
660,000
|
420,974
|
08/01/2036
|
0.000%
|
|
1,000,000
|
613,850
|
Chula Vista Elementary School District(f)
|
Unlimited General Obligation Bonds
|
BAN Series 2019
|
08/01/2023
|
0.000%
|
|
1,600,000
|
1,531,984
|
Compton Unified School District(f)
|
Unlimited General Obligation Bonds
|
Compton Unified School District
|
Series 2019B (BAM)
|
06/01/2036
|
0.000%
|
|
1,500,000
|
914,565
|
Conejo Valley Unified School District(f)
|
Unlimited General Obligation Bonds
|
Series 2015A (AGM)
|
08/01/2029
|
0.000%
|
|
1,650,000
|
1,204,269
|
08/01/2030
|
0.000%
|
|
1,000,000
|
688,680
|
Corona-Norco Unified School District
|
Unlimited General Obligation Bonds
|
Series 2019C
|
08/01/2049
|
4.000%
|
|
1,500,000
|
1,668,315
|
East Side Union High School District
|
Unlimited General Obligation Refunding Bonds
|
Series 2003B (NPFGC)
|
08/01/2026
|
5.250%
|
|
2,010,000
|
2,318,615
|
El Monte Union High School District
|
Unlimited General Obligation Bonds
|
Series 2019A
|
06/01/2044
|
4.000%
|
|
5,250,000
|
5,812,222
|
Fremont Union High School District
|
Unlimited General Obligation Bonds
|
Series 2019A
|
08/01/2046
|
4.000%
|
|
4,000,000
|
4,484,960
|
Glendale Unified School District(f)
|
Unlimited General Obligation Refunding Bonds
|
Series 2015B
|
09/01/2031
|
0.000%
|
|
1,900,000
|
1,286,718
|
09/01/2032
|
0.000%
|
|
1,000,000
|
641,000
|
Long Beach Community College District
|
Unlimited General Obligation Bonds
|
Series 2019C
|
08/01/2045
|
4.000%
|
|
725,000
|
811,558
|
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Long Beach Unified School District(f)
|
Unlimited General Obligation Bonds
|
Series 2015D-1
|
08/01/2032
|
0.000%
|
|
1,500,000
|
993,480
|
Manteca Unified School District(f)
|
Unlimited General Obligation Bonds
|
Capital Appreciation-Election of 2004
|
Series 2006 (NPFGC)
|
08/01/2032
|
0.000%
|
|
5,440,000
|
4,088,922
|
Monterey Peninsula Community College District(f)
|
Unlimited General Obligation Refunding Bonds
|
Series 2016
|
08/01/2032
|
0.000%
|
|
3,500,000
|
2,495,640
|
08/01/2033
|
0.000%
|
|
2,000,000
|
1,371,460
|
Oakland Unified School District/Alameda County
|
Unlimited General Obligation Bonds
|
Series 2015A
|
08/01/2040
|
5.000%
|
|
1,000,000
|
1,162,230
|
Pomona Unified School District(f)
|
Unlimited General Obligation Bonds
|
Series 2016G (AGM)
|
08/01/2033
|
0.000%
|
|
1,000,000
|
656,700
|
08/01/2034
|
0.000%
|
|
1,610,000
|
1,010,275
|
Poway Unified School District(f)
|
Unlimited General Obligation Bonds
|
Improvement District No. 2007-1-A
|
Series 2009
|
08/01/2030
|
0.000%
|
|
2,295,000
|
1,835,220
|
Riverside Community College District(f)
|
Unlimited General Obligation Bonds
|
Election of 2004
|
Series 2015E
|
08/01/2030
|
0.000%
|
|
600,000
|
420,228
|
08/01/2031
|
0.000%
|
|
1,000,000
|
661,330
|
Rocklin Unified School District(f)
|
Unlimited General Obligation Bonds
|
Capital Appreciation
|
Series 1995C (NPFGC)
|
07/01/2020
|
0.000%
|
|
845,000
|
838,316
|
San Diego Unified School District(f)
|
Unlimited General Obligation Bonds
|
Capital Appreciation Bonds
|
Series 2016I
|
07/01/2034
|
0.000%
|
|
5,000,000
|
3,057,100
|
San Diego Unified School District
|
Unlimited General Obligation Bonds
|
Series 2019B
|
07/01/2048
|
3.250%
|
|
5,000,000
|
5,171,350
|
Sierra Kings Health Care District
|
Unlimited General Obligation Refunding Bonds
|
Series 2015
|
08/01/2037
|
5.000%
|
|
1,500,000
|
1,716,375
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
11
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Simi Valley Unified School District
|
Refunding Certificate of Participation
|
Capital Improvement Projects
|
Series 1998 (AMBAC)
|
08/01/2022
|
5.250%
|
|
625,000
|
668,081
|
Total
|
57,758,220
|
Multi-Family 2.0%
|
California Municipal Finance Authority
|
Refunding Revenue Bonds
|
Caritas Projects
|
Series 2017A
|
08/15/2042
|
4.000%
|
|
1,000,000
|
1,049,750
|
Revenue Bonds
|
Bowles Hall Foundation
|
Series 2015A
|
06/01/2050
|
5.000%
|
|
1,250,000
|
1,391,113
|
Caritas Affordable Housing
|
Series 2014
|
08/15/2049
|
5.250%
|
|
3,500,000
|
3,890,985
|
Subordinated Series 2014
|
08/15/2049
|
5.875%
|
|
1,000,000
|
1,093,130
|
California Statewide Communities Development Authority
|
Refunding Revenue Bonds
|
University of California Irvine East Campus Apartments
|
Series 2012
|
05/15/2031
|
5.125%
|
|
2,000,000
|
2,124,620
|
Revenue Bonds
|
Lancer Educational Student Housing Project
|
Series 2019
|
06/01/2051
|
5.000%
|
|
1,440,000
|
1,653,566
|
NCCD-Hooper Street LLC
|
07/01/2049
|
5.250%
|
|
500,000
|
575,145
|
Total
|
11,778,309
|
Municipal Power 1.4%
|
City of Vernon Electric System
|
Revenue Bonds
|
Series 2012A
|
08/01/2030
|
5.000%
|
|
1,000,000
|
1,065,480
|
Unrefunded Revenue Bonds
|
Series 2009A
|
08/01/2021
|
5.125%
|
|
665,000
|
667,327
|
Turlock Irrigation District(d)
|
Refunding Revenue Bonds
|
Series 2020
|
01/01/2039
|
5.000%
|
|
2,000,000
|
2,438,520
|
01/01/2041
|
5.000%
|
|
3,130,000
|
3,797,692
|
Total
|
7,969,019
|
Municipal Bonds (continued)
|
Issue Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value ($)
|
Other Bond Issue 1.4%
|
City of Long Beach Marina System
|
Revenue Bonds
|
Series 2015
|
05/15/2040
|
5.000%
|
|
2,000,000
|
2,257,860
|
Federal Home Loan Mortgage Corp. Multifamily ML Certificates
|
Series 2019-ML05
|
03/01/2019
|
11/25/2033
|
3.350%
|
|
3,985,508
|
4,393,663
|
San Diego County Regional Airport Authority
|
Revenue Bonds
|
Consolidated Rental Car Facility Project
|
Series 2014A
|
07/01/2044
|
5.000%
|
|
1,500,000
|
1,716,615
|
Total
|
8,368,138
|
Ports 1.8%
|
Port Commission of the City & County of San Francisco
|
Revenue Bonds
|
Series 2010A
|
03/01/2040
|
5.125%
|
|
5,000,000
|
5,057,550
|
Port of Los Angeles(c)
|
Refunding Revenue Bonds
|
Series 2014A AMT
|
08/01/2044
|
5.000%
|
|
5,000,000
|
5,683,600
|
Total
|
10,741,150
|
Prepaid Gas 0.3%
|
M-S-R Energy Authority
|
Revenue Bonds
|
Series 2009B
|
11/01/2034
|
7.000%
|
|
1,000,000
|
1,529,280
|
Refunded / Escrowed 4.1%
|
City of Pomona
|
Refunding Revenue Bonds
|
Series 1990B Escrowed to Maturity (GNMA / FHLMC)
|
08/01/2023
|
7.500%
|
|
415,000
|
465,003
|
City of Redding Electric System(g)
|
Revenue Bonds
|
Series 1992 Escrowed to Maturity (NPFGC)
|
07/01/2022
|
8.964%
|
|
155,000
|
177,736
|
San Francisco City & County Redevelopment Agency
|
Prerefunded 02/01/21 Tax Allocation Bonds
|
San Francisco Redevelopment Projects
|
Series 2011B
|
08/01/2031
|
6.250%
|
|
2,600,000
|
2,768,974
|
08/01/2041
|
6.625%
|
|
1,600,000
|
1,711,168
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
12
|
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
San Joaquin Hills Transportation Corridor Agency(f)
|
Revenue Bonds
|
Senior Lien
|
Series 1993 Escrowed to Maturity
|
01/01/2020
|
0.000%
|
|
12,000,000
|
11,978,160
|
Santee CDC Successor Agency
|
Prerefunded 02/01/21 Tax Allocation Bonds
|
Santee Community Redevelopment Project
|
Series 2011A
|
08/01/2031
|
7.000%
|
|
1,000,000
|
1,073,570
|
Temecula Redevelopment Agency
|
Prerefunded 08/01/21 Tax Allocation Bonds
|
Housing Redevelopment Project No. 1
|
Series 2011A
|
08/01/2039
|
7.000%
|
|
2,100,000
|
2,314,263
|
Union City Community Redevelopment Agency
|
Prerefunded 12/01/21 Subordinated Tax Allocation Bonds
|
Lien-Community Redevelopment Project
|
Series 2011
|
12/01/2033
|
6.875%
|
|
1,500,000
|
1,681,170
|
Yorba Linda Redevelopment Agency Successor
|
Prerefunded 09/01/21 Subordinated Tax Allocation Bonds
|
Lien-Redevelopment Project
|
Series 2011A
|
09/01/2032
|
6.500%
|
|
2,000,000
|
2,197,240
|
Total
|
24,367,284
|
Resource Recovery 0.3%
|
California Municipal Finance Authority(c),(e),(h)
|
Revenue Bonds
|
UTS Renewable Energy-Waste Water Facilities
|
Series 2011 AMT
|
12/01/2032
|
0.000%
|
|
2,745,000
|
54,900
|
California Pollution Control Financing Authority(c),(e)
|
Revenue Bonds
|
Calplant I Project-Green
|
Subordinated Series 2019 AMT
|
12/01/2039
|
7.500%
|
|
2,000,000
|
1,939,440
|
Total
|
1,994,340
|
Retirement Communities 4.3%
|
ABAG Finance Authority for Nonprofit Corps.
|
Refunding Revenue Bonds
|
Episcopal Senior Communities
|
Series 2011
|
07/01/2031
|
6.000%
|
|
2,200,000
|
2,356,002
|
California Health Facilities Financing Authority
|
Refunding Revenue Bonds
|
Northern California Presbyterian Homes
|
Series 2015
|
07/01/2039
|
5.000%
|
|
2,565,000
|
2,988,097
|
07/01/2044
|
5.000%
|
|
700,000
|
807,996
|
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
California Municipal Finance Authority
|
Refunding Revenue Bonds
|
HumanGood Obligation Group
|
Series 2019A
|
10/01/2044
|
4.000%
|
|
2,500,000
|
2,717,000
|
Revenue Bonds
|
Paradise Vally Estates Project
|
Series 2019
|
01/01/2043
|
5.000%
|
|
3,000,000
|
3,595,260
|
California Statewide Communities Development Authority(e)
|
Refunding Revenue Bonds
|
899 Charleston Project
|
Series 2014A
|
11/01/2049
|
5.375%
|
|
1,885,000
|
2,081,907
|
California Statewide Communities Development Authority
|
Refunding Revenue Bonds
|
American Baptist Homes West
|
Series 2015
|
10/01/2045
|
5.000%
|
|
3,155,000
|
3,534,957
|
Front Porch Communities & Services
|
Series 2017
|
04/01/2047
|
4.000%
|
|
1,750,000
|
1,866,725
|
Front Porch Communities and Services
|
Series 2017
|
04/01/2047
|
5.000%
|
|
250,000
|
292,038
|
Revenue Bonds
|
Covenant Retirement Communities, Inc.
|
Series 2013
|
12/01/2036
|
5.625%
|
|
2,000,000
|
2,296,960
|
Eskaton Properties, Inc.
|
Series 2012
|
11/15/2034
|
5.250%
|
|
1,250,000
|
1,360,062
|
City of La Verne
|
Refunding Certificate of Participation
|
Brethren Hillcrest Homes
|
Series 2014
|
05/15/2036
|
5.000%
|
|
1,100,000
|
1,167,573
|
Total
|
25,064,577
|
Sales Tax 1.4%
|
Orange County Local Transportation Authority
|
Refunding Revenue Bonds
|
Series 2019
|
02/15/2035
|
5.000%
|
|
4,000,000
|
5,176,920
|
San Francisco Bay Area Rapid Transit District Sales Tax
|
Revenue Bonds
|
Series 2019A
|
07/01/2039
|
4.000%
|
|
1,250,000
|
1,415,275
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
13
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
San Joaquin County Transportation Authority
|
Revenue Bonds
|
Measure K
|
Series 2019
|
03/01/2039
|
5.000%
|
|
1,500,000
|
1,884,015
|
Total
|
8,476,210
|
Special Property Tax 8.7%
|
Bakersfield Redevelopment Agency
|
Tax Allocation Bonds
|
Old Town Kern Pioneer
|
Series 2009A
|
08/01/2029
|
7.500%
|
|
1,340,000
|
1,344,194
|
Southeast Bakersfield
|
Series 2009B
|
08/01/2029
|
7.250%
|
|
630,000
|
631,997
|
Carson Public Financing Authority
|
Revenue Bonds
|
Series 2019
|
09/02/2030
|
5.000%
|
|
1,000,000
|
1,275,080
|
Carson Redevelopment Agency Successor Agency
|
Tax Allocation Bonds
|
Housing
|
Series 2010A
|
10/01/2030
|
5.000%
|
|
5,000,000
|
5,163,500
|
Cerritos Public Financing Authority
|
Tax Allocation Bonds
|
Los Coyotes Redevelopment Project Loan
|
Series 1993A (AMBAC)
|
11/01/2023
|
6.500%
|
|
2,000,000
|
2,324,160
|
Chino Public Financing Authority
|
Refunding Special Tax Bonds
|
Series 2012
|
09/01/2030
|
5.000%
|
|
2,500,000
|
2,701,900
|
09/01/2038
|
5.000%
|
|
625,000
|
668,369
|
Chula Vista Municipal Financing Authority
|
Refunding Special Tax Bonds
|
Series 2015A
|
09/01/2035
|
5.000%
|
|
2,460,000
|
2,833,133
|
09/01/2036
|
5.000%
|
|
2,435,000
|
2,799,106
|
City of Carson
|
Special Assessment Bonds
|
Assessment District No. 92-1
|
Series 1992
|
09/02/2022
|
7.375%
|
|
45,000
|
45,775
|
City of Irvine
|
Special Tax Bonds
|
Community Facilities District 2013-3
|
Series 2014
|
09/01/2039
|
5.000%
|
|
750,000
|
835,215
|
09/01/2044
|
5.000%
|
|
1,025,000
|
1,135,803
|
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
City of Yucaipa
|
Refunding Special Tax Bonds
|
Community Facilities District No. 98-1
|
Series 2011
|
09/01/2030
|
5.375%
|
|
1,500,000
|
1,595,850
|
Corona-Norco Unified School District
|
Refunding Special Tax Bonds
|
Community Facilities District #98-1
|
Series 2013
|
09/01/2032
|
5.000%
|
|
1,300,000
|
1,470,274
|
Elk Grove Unified School District
|
Refunding Special Tax Bonds
|
Community Facilities District No. 1
|
Series 1995 (AMBAC)
|
12/01/2024
|
6.500%
|
|
2,370,000
|
2,614,797
|
Inglewood Redevelopment Agency Successor Agency
|
Refunding Tax Allocation Bonds
|
Merged Redevelopment Project
|
Series 1998A (AMBAC)
|
05/01/2023
|
5.250%
|
|
1,360,000
|
1,473,397
|
Inland Valley Development Agency
|
Refunding Tax Allocation Bonds
|
Series 2014A
|
09/01/2044
|
5.000%
|
|
5,000,000
|
5,614,700
|
Irvine Unified School District
|
Special Tax Bonds
|
Community Facilities District Number 09-1
|
Series 2019A
|
09/01/2038
|
4.000%
|
|
275,000
|
309,114
|
09/01/2040
|
4.000%
|
|
690,000
|
770,882
|
Series 2019A (BAM)
|
09/01/2049
|
4.000%
|
|
1,150,000
|
1,291,944
|
Jurupa Public Financing Authority
|
Refunding Special Tax Bonds
|
Series 2014A
|
09/01/2042
|
5.000%
|
|
1,000,000
|
1,139,530
|
Mountain View Shoreline Regional Park Community
|
Tax Allocation Bonds
|
Series 2011A
|
08/01/2035
|
5.625%
|
|
1,300,000
|
1,393,691
|
08/01/2040
|
5.750%
|
|
2,000,000
|
2,148,420
|
Pittsburg Successor Agency Redevelopment Agency(f)
|
Tax Allocation Bonds
|
Los Medanos Community Development Project
|
Series 1999 (AMBAC)
|
08/01/2024
|
0.000%
|
|
2,100,000
|
1,931,706
|
Poway Unified School District Public Financing Authority
|
Special Tax Refunding Bonds
|
Series 2015B (BAM)
|
09/01/2035
|
5.000%
|
|
1,415,000
|
1,684,996
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
14
|
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
San Diego Redevelopment Agency Successor Agency(f)
|
Tax Allocation Bonds
|
Capital Appreciation
|
Series 2001 (AGM)
|
09/01/2020
|
0.000%
|
|
3,630,000
|
3,592,284
|
San Francisco City & County Redevelopment Agency
|
Tax Allocation Bonds
|
Mission Bay South Redevelopment Project
|
Series 2014A
|
08/01/2043
|
5.000%
|
|
1,000,000
|
1,132,270
|
Santa Monica Redevelopment Agency
|
Tax Allocation Bonds
|
Earthquake Recovery Redevelopment
|
Series 2011
|
07/01/2036
|
5.875%
|
|
1,250,000
|
1,345,837
|
Total
|
51,267,924
|
State Appropriated 3.6%
|
California State Public Works Board
|
Refunding Revenue Bonds
|
Various Capital Projects
|
Series 2012G
|
11/01/2037
|
5.000%
|
|
6,825,000
|
7,522,857
|
Revenue Bonds
|
Judicial Council Projects
|
Series 2013A
|
03/01/2038
|
5.000%
|
|
2,500,000
|
2,770,925
|
Series 2014B
|
10/01/2039
|
5.000%
|
|
1,000,000
|
1,151,280
|
Various Capital Projects
|
Series 2011A
|
10/01/2031
|
5.125%
|
|
5,000,000
|
5,369,350
|
Various Correctional Facilities
|
Series 2014A
|
09/01/2039
|
5.000%
|
|
3,895,000
|
4,475,160
|
Total
|
21,289,572
|
State General Obligation 10.8%
|
State of California
|
Unlimited General Obligation Bonds
|
Construction Bonds
|
Series 2019
|
10/01/2044
|
4.000%
|
|
5,000,000
|
5,721,600
|
10/01/2049
|
5.000%
|
|
2,000,000
|
2,524,260
|
Series 2019
|
04/01/2045
|
3.250%
|
|
3,650,000
|
3,813,703
|
Various Purpose
|
Series 2009
|
11/01/2039
|
5.500%
|
|
4,360,000
|
4,374,214
|
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Series 2010
|
03/01/2030
|
5.250%
|
|
1,000,000
|
1,013,440
|
03/01/2033
|
6.000%
|
|
4,000,000
|
4,063,840
|
03/01/2040
|
5.500%
|
|
4,800,000
|
4,869,024
|
Various Purpose - Bid Group A
|
10/01/2048
|
5.000%
|
|
10,000,000
|
12,412,400
|
Unlimited General Obligation Refunding Bonds
|
Series 2019
|
04/01/2027
|
5.000%
|
|
5,000,000
|
6,274,400
|
04/01/2028
|
5.000%
|
|
7,000,000
|
8,957,410
|
Various Purpose
|
Series 2019
|
04/01/2032
|
5.000%
|
|
7,000,000
|
9,491,860
|
Unrefunded Unlimited General Obligation Bonds
|
Series 2004
|
04/01/2029
|
5.300%
|
|
2,000
|
2,006
|
Total
|
63,518,157
|
Tobacco 3.3%
|
Golden State Tobacco Securitization Corp.
|
Refunding Revenue Bonds
|
Series 2018A-1
|
06/01/2047
|
5.000%
|
|
4,000,000
|
4,111,640
|
06/01/2047
|
5.250%
|
|
1,500,000
|
1,548,000
|
Series 2018A-2
|
06/01/2047
|
5.000%
|
|
6,900,000
|
7,092,579
|
Tobacco Securitization Authority of Southern California(d)
|
Refunding Revenue Bonds
|
San Diego County Tobacco Asset Securitization Corp.
|
Series 2019
|
06/01/2048
|
5.000%
|
|
5,000,000
|
5,792,750
|
Tobacco Securitization Authority of Southern California(d),(f)
|
Refunding Revenue Bonds
|
San Diego County Tobacco Asset Securitization Corp.
|
Series 2019
|
06/01/2054
|
0.000%
|
|
7,000,000
|
1,067,640
|
Total
|
19,612,609
|
Turnpike / Bridge / Toll Road 4.2%
|
Foothill-Eastern Transportation Corridor Agency
|
Refunding Revenue Bonds
|
Series 2014A
|
01/15/2046
|
5.750%
|
|
2,850,000
|
3,294,144
|
Subordinated Series 2019B-2
|
01/15/2053
|
3.500%
|
|
5,000,000
|
5,232,600
|
Foothill-Eastern Transportation Corridor Agency(f)
|
Refunding Revenue Bonds
|
Series 2015
|
01/15/2033
|
0.000%
|
|
5,000,000
|
3,370,600
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
15
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Riverside County Transportation Commission(f)
|
Revenue Bonds
|
Capital Appreciation-Senior Lien
|
Series 2013B
|
06/01/2032
|
0.000%
|
|
2,055,000
|
1,487,676
|
06/01/2033
|
0.000%
|
|
2,940,000
|
2,053,384
|
Senior Lien
|
Series 2013B
|
06/01/2029
|
0.000%
|
|
2,500,000
|
2,003,375
|
Riverside County Transportation Commission
|
Revenue Bonds
|
Senior Lien
|
Series 2013A
|
06/01/2048
|
5.750%
|
|
1,500,000
|
1,678,725
|
San Joaquin Hills Transportation Corridor Agency
|
Refunding Revenue Bonds
|
Senior Lien
|
Series 2014A
|
01/15/2044
|
5.000%
|
|
5,000,000
|
5,671,600
|
Total
|
24,792,104
|
Water & Sewer 2.1%
|
City of Riverside Sewer
|
Refunding Revenue Bonds
|
Series 2015A
|
08/01/2040
|
5.000%
|
|
3,185,000
|
3,713,009
|
City of Tulare Sewer
|
Refunding Revenue Bonds
|
Series 2015 (AGM)
|
11/15/2041
|
5.000%
|
|
2,000,000
|
2,350,880
|
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Los Angeles Department of Water
|
Refunding Revenue Bonds
|
Series 2018B
|
07/01/2043
|
5.000%
|
|
5,000,000
|
6,180,200
|
Total
|
12,244,089
|
Total Municipal Bonds
(Cost $546,217,249)
|
581,843,913
|
Money Market Funds 1.3%
|
|
Shares
|
Value ($)
|
Dreyfus AMT-Free Tax Exempt Cash Management Fund, Institutional Shares, 1.068%(i)
|
261,012
|
261,039
|
JPMorgan Institutional Tax Free Money Market Fund, Institutional Shares, 1.045%(i)
|
7,183,735
|
7,183,735
|
Total Money Market Funds
(Cost $7,444,738)
|
7,444,774
|
Total Investments in Securities
(Cost: $560,471,987)
|
596,098,687
|
Other Assets & Liabilities, Net
|
|
(8,623,338)
|
Net Assets
|
587,475,349
|
Notes to Portfolio of
Investments
(a)
|
The Fund is entitled to receive principal and interest from the guarantor after a day or a week’s notice or upon maturity. The maturity date disclosed represents the final maturity.
|
(b)
|
Represents a variable rate security where the coupon rate adjusts on specified dates (generally daily or weekly) using the prevailing money market rate. The interest rate shown was
the current rate as of October 31, 2019.
|
(c)
|
Income from this security may be subject to alternative minimum tax.
|
(d)
|
Represents a security purchased on a when-issued basis.
|
(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. The Fund may invest in private placements determined to be liquid as well as those determined to be illiquid.
Private placements may be determined to be liquid under guidelines established by the Fund’s Board of Trustees. At October 31, 2019, the total value of these securities amounted to $32,654,139, which represents
5.56% of total net assets.
|
(f)
|
Zero coupon bond.
|
(g)
|
Inverse floating rate security issued by a tender option bond (TOB) trust, the interest rate on which varies inversely with the Securities Industry Financial Markets Association
(SIFMA) short-term rate, which resets weekly, or a similar short-term rate, and is reduced by the expenses related to the TOB trust. The interest rate shown was the current rate as of October 31, 2019.
|
(h)
|
Represents securities that have defaulted on payment of interest. The Fund has stopped accruing interest on these securities. At October 31, 2019, the total value of these securities
amounted to $54,900, which represents 0.01% of total net assets.
|
(i)
|
The rate shown is the seven-day current annualized yield at October 31, 2019.
|
The accompanying Notes to Financial Statements are
an integral part of this statement.
16
|
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
Portfolio of Investments (continued)
October 31, 2019
Abbreviation Legend
AGM
|
Assured Guaranty Municipal Corporation
|
AMBAC
|
Ambac Assurance Corporation
|
AMT
|
Alternative Minimum Tax
|
BAM
|
Build America Mutual Assurance Co.
|
BAN
|
Bond Anticipation Note
|
FHLMC
|
Federal Home Loan Mortgage Corporation
|
GNMA
|
Government National Mortgage Association
|
NPFGC
|
National Public Finance Guarantee Corporation
|
Fair value measurements
The Fund categorizes its fair
value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available.
Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the
Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is
deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example,
certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in
the three broad levels listed below:
■
|
Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments.
|
■
|
Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.).
|
■
|
Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments).
|
Inputs that are used in determining
fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary
between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered
by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include
periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels
within the hierarchy.
Investments falling into the Level 3
category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency
and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant
unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and
estimated cash flows, and comparable company data.
Under the direction of the
Fund’s Board of Trustees (the Board), the Investment Manager’s Valuation Committee (the Committee) is responsible for overseeing the valuation procedures approved by the Board. The Committee consists of
voting and non-voting members from various groups within the Investment Manager’s organization, including operations and accounting, trading and investments, compliance, risk management and legal.
The Committee meets at least monthly
to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of
Board-approved valuation control policies and procedures (the Policies). The Policies address, among other things, instances when market quotations are or are not readily available, including recommendations of third
party pricing vendors and a determination of appropriate pricing methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale
pricing, including those that are illiquid, restricted, or in default; and the effectiveness of third party pricing vendors, including periodic reviews of vendors. The Committee meets more frequently, as needed, to
discuss additional valuation matters, which may include the need to review back-testing results, review time-sensitive information or approve related valuation actions. The Committee reports to the Board, with members
of the Committee meeting with the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.
The following table is a summary of
the inputs used to value the Fund’s investments at October 31, 2019:
|
Level 1 ($)
|
Level 2 ($)
|
Level 3 ($)
|
Total ($)
|
Investments in Securities
|
|
|
|
|
Floating Rate Notes
|
—
|
6,810,000
|
—
|
6,810,000
|
Municipal Bonds
|
—
|
581,843,913
|
—
|
581,843,913
|
Money Market Funds
|
7,444,774
|
—
|
—
|
7,444,774
|
Total Investments in Securities
|
7,444,774
|
588,653,913
|
—
|
596,098,687
|
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The Fund’s assets assigned to
the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical
assets.
The accompanying Notes to Financial Statements are
an integral part of this statement.
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
17
|
Statement of Assets and Liabilities
October 31, 2019
Assets
|
|
Investments in securities, at value
|
|
Unaffiliated issuers (cost $560,471,987)
|
$596,098,687
|
Cash
|
73
|
Receivable for:
|
|
Investments sold
|
4,252,488
|
Capital shares sold
|
1,576,251
|
Interest
|
6,245,052
|
Expense reimbursement due from Investment Manager
|
371
|
Prepaid expenses
|
2,783
|
Trustees’ deferred compensation plan
|
108,361
|
Total assets
|
608,284,066
|
Liabilities
|
|
Payable for:
|
|
Investments purchased on a delayed delivery basis
|
18,536,422
|
Capital shares purchased
|
582,289
|
Distributions to shareholders
|
1,476,407
|
Management services fees
|
7,358
|
Distribution and/or service fees
|
2,969
|
Transfer agent fees
|
40,912
|
Compensation of board members
|
30,415
|
Compensation of chief compliance officer
|
15
|
Other expenses
|
23,569
|
Trustees’ deferred compensation plan
|
108,361
|
Total liabilities
|
20,808,717
|
Net assets applicable to outstanding capital stock
|
$587,475,349
|
Represented by
|
|
Paid in capital
|
547,232,696
|
Total distributable earnings (loss)
|
40,242,653
|
Total - representing net assets applicable to outstanding capital stock
|
$587,475,349
|
Class A
|
|
Net assets
|
$347,854,135
|
Shares outstanding
|
44,712,749
|
Net asset value per share
|
$7.78
|
Maximum sales charge
|
3.00%
|
Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares)
|
$8.02
|
Advisor Class
|
|
Net assets
|
$6,205,697
|
Shares outstanding
|
797,199
|
Net asset value per share
|
$7.78
|
Class C
|
|
Net assets
|
$31,409,817
|
Shares outstanding
|
4,037,060
|
Net asset value per share
|
$7.78
|
Institutional Class
|
|
Net assets
|
$192,055,291
|
Shares outstanding
|
24,677,422
|
Net asset value per share
|
$7.78
|
Institutional 2 Class
|
|
Net assets
|
$3,302,135
|
Shares outstanding
|
423,615
|
Net asset value per share
|
$7.80
|
Institutional 3 Class
|
|
Net assets
|
$6,648,274
|
Shares outstanding
|
849,892
|
Net asset value per share
|
$7.82
|
The accompanying Notes to Financial Statements are
an integral part of this statement.
18
|
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
Statement of Operations
Year Ended October 31, 2019
Net investment income
|
|
Income:
|
|
Dividends — unaffiliated issuers
|
$34,455
|
Interest
|
21,652,110
|
Total income
|
21,686,565
|
Expenses:
|
|
Management services fees
|
2,483,919
|
Distribution and/or service fees
|
|
Class A
|
835,942
|
Class C
|
325,386
|
Transfer agent fees
|
|
Class A
|
265,823
|
Advisor Class
|
2,379
|
Class C
|
25,889
|
Institutional Class
|
126,125
|
Institutional 2 Class
|
747
|
Institutional 3 Class
|
468
|
Compensation of board members
|
21,760
|
Custodian fees
|
5,033
|
Printing and postage fees
|
24,267
|
Registration fees
|
11,184
|
Audit fees
|
29,500
|
Legal fees
|
11,350
|
Interest on interfund lending
|
219
|
Compensation of chief compliance officer
|
206
|
Other
|
24,062
|
Total expenses
|
4,194,259
|
Fees waived or expenses reimbursed by Investment Manager and its affiliates
|
(100,326)
|
Fees waived by distributor
|
|
Class C
|
(97,616)
|
Fees waived by transfer agent
|
|
Institutional 2 Class
|
(13)
|
Expense reduction
|
(340)
|
Total net expenses
|
3,995,964
|
Net investment income
|
17,690,601
|
Realized and unrealized gain (loss) — net
|
|
Net realized gain (loss) on:
|
|
Investments — unaffiliated issuers
|
5,373,278
|
Futures contracts
|
(290,744)
|
Net realized gain
|
5,082,534
|
Net change in unrealized appreciation (depreciation) on:
|
|
Investments — unaffiliated issuers
|
24,321,471
|
Net change in unrealized appreciation (depreciation)
|
24,321,471
|
Net realized and unrealized gain
|
29,404,005
|
Net increase in net assets resulting from operations
|
$47,094,606
|
The accompanying Notes to
Financial Statements are an integral part of this statement.
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
19
|
Statement of Changes in Net Assets
|
Year Ended
October 31, 2019
|
Year Ended
October 31, 2018
|
Operations
|
|
|
Net investment income
|
$17,690,601
|
$18,199,525
|
Net realized gain
|
5,082,534
|
1,227,040
|
Net change in unrealized appreciation (depreciation)
|
24,321,471
|
(22,190,416)
|
Net increase (decrease) in net assets resulting from operations
|
47,094,606
|
(2,763,851)
|
Distributions to shareholders
|
|
|
Net investment income and net realized gains
|
|
|
Class A
|
(11,667,135)
|
(13,324,321)
|
Advisor Class
|
(105,641)
|
(77,978)
|
Class C
|
(997,548)
|
(1,512,980)
|
Institutional Class
|
(5,895,137)
|
(5,639,491)
|
Institutional 2 Class
|
(36,037)
|
(6,154)
|
Institutional 3 Class
|
(198,531)
|
(160,107)
|
Total distributions to shareholders
|
(18,900,029)
|
(20,721,031)
|
Increase in net assets from capital stock activity
|
51,791,541
|
17,764,299
|
Total increase (decrease) in net assets
|
79,986,118
|
(5,720,583)
|
Net assets at beginning of year
|
507,489,231
|
513,209,814
|
Net assets at end of year
|
$587,475,349
|
$507,489,231
|
The accompanying Notes to
Financial Statements are an integral part of this statement.
20
|
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
Statement of Changes in Net Assets (continued)
|
Year Ended
|
Year Ended
|
|
October 31, 2019
|
October 31, 2018
|
|
Shares
|
Dollars ($)
|
Shares
|
Dollars ($)
|
Capital stock activity
|
Class A
|
|
|
|
|
Subscriptions
|
6,603,427
|
50,368,103
|
4,971,537
|
37,587,441
|
Distributions reinvested
|
1,268,043
|
9,637,698
|
1,464,169
|
11,069,379
|
Redemptions
|
(7,075,778)
|
(53,717,867)
|
(6,496,045)
|
(49,086,305)
|
Net increase (decrease)
|
795,692
|
6,287,934
|
(60,339)
|
(429,485)
|
Advisor Class
|
|
|
|
|
Subscriptions
|
656,892
|
5,048,896
|
87,868
|
665,814
|
Distributions reinvested
|
13,669
|
105,265
|
10,227
|
77,553
|
Redemptions
|
(58,193)
|
(437,121)
|
(331,862)
|
(2,544,756)
|
Net increase (decrease)
|
612,368
|
4,717,040
|
(233,767)
|
(1,801,389)
|
Class C
|
|
|
|
|
Subscriptions
|
804,684
|
6,140,955
|
541,887
|
4,100,340
|
Distributions reinvested
|
86,374
|
655,595
|
136,041
|
1,029,676
|
Redemptions
|
(1,621,441)
|
(12,279,875)
|
(1,938,196)
|
(14,668,979)
|
Net decrease
|
(730,383)
|
(5,483,325)
|
(1,260,268)
|
(9,538,963)
|
Institutional Class
|
|
|
|
|
Subscriptions
|
11,730,006
|
89,434,865
|
7,015,492
|
53,119,269
|
Distributions reinvested
|
461,332
|
3,516,101
|
373,643
|
2,821,564
|
Redemptions
|
(6,927,461)
|
(52,227,871)
|
(3,629,223)
|
(27,422,386)
|
Net increase
|
5,263,877
|
40,723,095
|
3,759,912
|
28,518,447
|
Institutional 2 Class
|
|
|
|
|
Subscriptions
|
395,896
|
3,066,598
|
16,157
|
122,654
|
Distributions reinvested
|
4,589
|
35,677
|
761
|
5,745
|
Redemptions
|
(3,461)
|
(26,729)
|
(401)
|
(3,022)
|
Net increase
|
397,024
|
3,075,546
|
16,517
|
125,377
|
Institutional 3 Class
|
|
|
|
|
Subscriptions
|
440,727
|
3,359,946
|
333,816
|
2,536,827
|
Distributions reinvested
|
25,862
|
198,148
|
21,029
|
159,675
|
Redemptions
|
(143,515)
|
(1,086,843)
|
(238,826)
|
(1,806,190)
|
Net increase
|
323,074
|
2,471,251
|
116,019
|
890,312
|
Total net increase
|
6,661,652
|
51,791,541
|
2,338,074
|
17,764,299
|
The accompanying Notes to Financial Statements are
an integral part of this statement.
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
21
|
The following table is intended to
help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are
calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total
return and portfolio turnover are not annualized for periods of less than one year. The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments and certain
derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be higher.
|
Net asset value,
beginning of
period
|
Net
investment
income
|
Net
realized
and
unrealized
gain (loss)
|
Total from
investment
operations
|
Distributions
from net
investment
income
|
Distributions
from net
realized
gains
|
Total
distributions to
shareholders
|
Class A
|
Year Ended 10/31/2019
|
$7.37
|
0.25
|
0.43
|
0.68
|
(0.25)
|
(0.02)
|
(0.27)
|
Year Ended 10/31/2018
|
$7.72
|
0.27
|
(0.32)
|
(0.05)
|
(0.26)
|
(0.04)
|
(0.30)
|
Year Ended 10/31/2017
|
$7.94
|
0.28
|
(0.17)
|
0.11
|
(0.28)
|
(0.05)
|
(0.33)
|
Year Ended 10/31/2016
|
$7.90
|
0.29
|
0.08
|
0.37
|
(0.29)
|
(0.04)
|
(0.33)
|
Year Ended 10/31/2015
|
$7.99
|
0.30
|
(0.05)
|
0.25
|
(0.30)
|
(0.04)
|
(0.34)
|
Advisor Class
|
Year Ended 10/31/2019
|
$7.37
|
0.26
|
0.43
|
0.69
|
(0.26)
|
(0.02)
|
(0.28)
|
Year Ended 10/31/2018
|
$7.72
|
0.29
|
(0.32)
|
(0.03)
|
(0.28)
|
(0.04)
|
(0.32)
|
Year Ended 10/31/2017
|
$7.94
|
0.29
|
(0.16)
|
0.13
|
(0.30)
|
(0.05)
|
(0.35)
|
Year Ended 10/31/2016
|
$7.90
|
0.31
|
0.08
|
0.39
|
(0.31)
|
(0.04)
|
(0.35)
|
Year Ended 10/31/2015
|
$7.99
|
0.32
|
(0.05)
|
0.27
|
(0.32)
|
(0.04)
|
(0.36)
|
Class C
|
Year Ended 10/31/2019
|
$7.37
|
0.21
|
0.43
|
0.64
|
(0.21)
|
(0.02)
|
(0.23)
|
Year Ended 10/31/2018
|
$7.72
|
0.23
|
(0.31)
|
(0.08)
|
(0.23)
|
(0.04)
|
(0.27)
|
Year Ended 10/31/2017
|
$7.94
|
0.24
|
(0.17)
|
0.07
|
(0.24)
|
(0.05)
|
(0.29)
|
Year Ended 10/31/2016
|
$7.90
|
0.25
|
0.09
|
0.34
|
(0.26)
|
(0.04)
|
(0.30)
|
Year Ended 10/31/2015
|
$7.99
|
0.27
|
(0.06)
|
0.21
|
(0.26)
|
(0.04)
|
(0.30)
|
Institutional Class
|
Year Ended 10/31/2019
|
$7.37
|
0.27
|
0.42
|
0.69
|
(0.26)
|
(0.02)
|
(0.28)
|
Year Ended 10/31/2018
|
$7.72
|
0.28
|
(0.31)
|
(0.03)
|
(0.28)
|
(0.04)
|
(0.32)
|
Year Ended 10/31/2017
|
$7.94
|
0.30
|
(0.17)
|
0.13
|
(0.30)
|
(0.05)
|
(0.35)
|
Year Ended 10/31/2016
|
$7.90
|
0.31
|
0.08
|
0.39
|
(0.31)
|
(0.04)
|
(0.35)
|
Year Ended 10/31/2015
|
$7.99
|
0.32
|
(0.05)
|
0.27
|
(0.32)
|
(0.04)
|
(0.36)
|
Institutional 2 Class
|
Year Ended 10/31/2019
|
$7.39
|
0.25
|
0.45
|
0.70
|
(0.27)
|
(0.02)
|
(0.29)
|
Year Ended 10/31/2018
|
$7.73
|
0.29
|
(0.30)
|
(0.01)
|
(0.29)
|
(0.04)
|
(0.33)
|
Year Ended 10/31/2017
|
$7.95
|
0.30
|
(0.17)
|
0.13
|
(0.30)
|
(0.05)
|
(0.35)
|
Year Ended 10/31/2016(h)
|
$7.96
|
0.21
|
(0.01)(i)
|
0.20
|
(0.21)
|
—
|
(0.21)
|
The accompanying Notes to
Financial Statements are an integral part of this statement.
22
|
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
Financial Highlights (continued)
|
Proceeds from
regulatory
settlements
|
Net
asset
value,
end of
period
|
Total
return
|
Total gross
expense
ratio to
average
net assets(a)
|
Total net
expense
ratio to
average
net assets(a),(b)
|
Net investment
income
ratio to
average
net assets
|
Portfolio
turnover
|
Net
assets,
end of
period
(000’s)
|
Class A
|
Year Ended 10/31/2019
|
—
|
$7.78
|
9.31%
|
0.82%(c)
|
0.80%(c),(d)
|
3.26%
|
37%
|
$347,854
|
Year Ended 10/31/2018
|
—
|
$7.37
|
(0.62%)
|
0.82%
|
0.82%(d)
|
3.52%
|
13%
|
$323,725
|
Year Ended 10/31/2017
|
—
|
$7.72
|
1.49%
|
0.82%(e)
|
0.81%(d),(e)
|
3.61%
|
17%
|
$339,354
|
Year Ended 10/31/2016
|
—
|
$7.94
|
4.78%
|
0.87%
|
0.81%(d)
|
3.62%
|
13%
|
$385,410
|
Year Ended 10/31/2015
|
0.00(f)
|
$7.90
|
3.16%(g)
|
0.88%
|
0.79%(d)
|
3.81%
|
12%
|
$370,795
|
Advisor Class
|
Year Ended 10/31/2019
|
—
|
$7.78
|
9.59%
|
0.57%(c)
|
0.54%(c),(d)
|
3.37%
|
37%
|
$6,206
|
Year Ended 10/31/2018
|
—
|
$7.37
|
(0.38%)
|
0.57%
|
0.57%(d)
|
3.76%
|
13%
|
$1,363
|
Year Ended 10/31/2017
|
—
|
$7.72
|
1.75%
|
0.57%
|
0.56%(d)
|
3.82%
|
17%
|
$3,231
|
Year Ended 10/31/2016
|
—
|
$7.94
|
5.04%
|
0.63%
|
0.57%(d)
|
3.87%
|
13%
|
$1,021
|
Year Ended 10/31/2015
|
0.00(f)
|
$7.90
|
3.42%(g)
|
0.63%
|
0.54%(d)
|
4.05%
|
12%
|
$120
|
Class C
|
Year Ended 10/31/2019
|
—
|
$7.78
|
8.82%
|
1.57%(c)
|
1.25%(c),(d)
|
2.82%
|
37%
|
$31,410
|
Year Ended 10/31/2018
|
—
|
$7.37
|
(1.07%)
|
1.57%
|
1.27%(d)
|
3.07%
|
13%
|
$35,145
|
Year Ended 10/31/2017
|
—
|
$7.72
|
1.03%
|
1.57%(e)
|
1.26%(d),(e)
|
3.16%
|
17%
|
$46,521
|
Year Ended 10/31/2016
|
—
|
$7.94
|
4.31%
|
1.62%
|
1.26%(d)
|
3.16%
|
13%
|
$54,502
|
Year Ended 10/31/2015
|
0.00(f)
|
$7.90
|
2.70%(g)
|
1.63%
|
1.24%(d)
|
3.36%
|
12%
|
$43,775
|
Institutional Class
|
Year Ended 10/31/2019
|
—
|
$7.78
|
9.58%
|
0.57%(c)
|
0.55%(c),(d)
|
3.49%
|
37%
|
$192,055
|
Year Ended 10/31/2018
|
—
|
$7.37
|
(0.37%)
|
0.57%
|
0.57%(d)
|
3.77%
|
13%
|
$143,156
|
Year Ended 10/31/2017
|
—
|
$7.72
|
1.74%
|
0.57%(e)
|
0.56%(d),(e)
|
3.86%
|
17%
|
$120,839
|
Year Ended 10/31/2016
|
—
|
$7.94
|
5.04%
|
0.62%
|
0.56%(d)
|
3.87%
|
13%
|
$120,169
|
Year Ended 10/31/2015
|
0.00(f)
|
$7.90
|
3.42%(g)
|
0.63%
|
0.54%(d)
|
4.06%
|
12%
|
$106,799
|
Institutional 2 Class
|
Year Ended 10/31/2019
|
—
|
$7.80
|
9.59%
|
0.56%(c)
|
0.53%(c)
|
3.29%
|
37%
|
$3,302
|
Year Ended 10/31/2018
|
—
|
$7.39
|
(0.21%)
|
0.56%
|
0.55%
|
3.80%
|
13%
|
$196
|
Year Ended 10/31/2017
|
—
|
$7.73
|
1.75%
|
0.55%(e)
|
0.53%(e)
|
3.95%
|
17%
|
$78
|
Year Ended 10/31/2016(h)
|
—
|
$7.95
|
2.45%
|
0.55%(j)
|
0.52%(j)
|
4.01%(j)
|
13%
|
$1,349
|
The accompanying Notes to
Financial Statements are an integral part of this statement.
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
23
|
Financial Highlights (continued)
|
Net asset value,
beginning of
period
|
Net
investment
income
|
Net
realized
and
unrealized
gain (loss)
|
Total from
investment
operations
|
Distributions
from net
investment
income
|
Distributions
from net
realized
gains
|
Total
distributions to
shareholders
|
Institutional 3 Class
|
Year Ended 10/31/2019
|
$7.41
|
0.27
|
0.43
|
0.70
|
(0.27)
|
(0.02)
|
(0.29)
|
Year Ended 10/31/2018
|
$7.76
|
0.29
|
(0.31)
|
(0.02)
|
(0.29)
|
(0.04)
|
(0.33)
|
Year Ended 10/31/2017(k)
|
$7.63
|
0.20
|
0.13(i)
|
0.33
|
(0.20)
|
—
|
(0.20)
|
Notes to Financial Highlights
|
(a)
|
In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such
indirect expenses are not included in the Fund’s reported expense ratios.
|
(b)
|
Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable.
|
(c)
|
Ratios include interfund lending expense which is less than 0.01%.
|
(d)
|
The benefits derived from expense reductions had an impact of less than 0.01%.
|
(e)
|
Expenses have been reduced due to a reimbursement of expenses overbilled by a third party. If the reimbursement had been excluded, the expense ratios would have been higher by the
percentages shown for each class in the table below. All fee waivers and expense reimbursements by the Investment Manager and its affiliates were applied before giving effect to this third party reimbursement.
|
Year Ended
|
Class A
|
Class C
|
Institutional
Class
|
Institutional 2
Class
|
10/31/2017
|
0.01%
|
0.01%
|
0.01%
|
0.01%
|
(f)
|
Rounds to zero.
|
(g)
|
The Fund received proceeds from regulatory settlements. Had the Fund not received these proceeds, the total return would have been lower by 0.06%.
|
(h)
|
Institutional 2 Class shares commenced operations on March 1, 2016. Per share data and total return reflect activity from that date.
|
(i)
|
Calculation of the net gain (loss) per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gain (loss) presented in the Statement of
Operations due to the timing of subscriptions and redemptions of Fund shares in relation to fluctuations in the market value of the portfolio.
|
(j)
|
Annualized.
|
(k)
|
Institutional 3 Class shares commenced operations on March 1, 2017. Per share data and total return reflect activity from that date.
|
The accompanying Notes to
Financial Statements are an integral part of this statement.
24
|
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
Financial Highlights (continued)
|
Proceeds from
regulatory
settlements
|
Net
asset
value,
end of
period
|
Total
return
|
Total gross
expense
ratio to
average
net assets(a)
|
Total net
expense
ratio to
average
net assets(a),(b)
|
Net investment
income
ratio to
average
net assets
|
Portfolio
turnover
|
Net
assets,
end of
period
(000’s)
|
Institutional 3 Class
|
Year Ended 10/31/2019
|
—
|
$7.82
|
9.63%
|
0.50%(c)
|
0.48%(c)
|
3.55%
|
37%
|
$6,648
|
Year Ended 10/31/2018
|
—
|
$7.41
|
(0.28%)
|
0.50%
|
0.50%
|
3.85%
|
13%
|
$3,905
|
Year Ended 10/31/2017(k)
|
—
|
$7.76
|
4.34%
|
0.52%(j)
|
0.51%(j)
|
3.93%(j)
|
17%
|
$3,187
|
The accompanying Notes to Financial Statements are
an integral part of this statement.
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
25
|
Notes to Financial Statements
October 31, 2019
Note 1. Organization
Columbia Strategic California
Municipal Income Fund (the Fund), a series of Columbia Funds Series Trust I (the Trust), is a non-diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an
open-end management investment company organized as a Massachusetts business trust.
Fund shares
The Trust may issue an unlimited
number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation
rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have
different minimum initial investment amounts and pay different distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a liquidation will be
proportional to the net asset value of each share class.
As described in the Fund’s
prospectus, Class A and Class C shares are offered to the general public for investment. Advisor Class, Institutional Class, Institutional 2 Class and Institutional 3 Class shares are available for purchase through
authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also described in the Fund’s prospectus. Class C shares automatically convert to
Class A shares after 10 years.
Note 2. Summary of
significant accounting policies
Basis of preparation
The Fund is an investment company
that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires
management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of
significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Debt securities generally are
valued by pricing services approved by the Board of Trustees based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques that take
into account, as applicable, factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as approved independent broker-dealer quotes. Debt securities for
which quotations are not readily available or not believed to be reflective of market value may also be valued based upon a bid quote from an approved independent broker-dealer. Debt securities maturing in 60 days or
less are valued primarily at amortized cost value, unless this method results in a valuation that management believes does not approximate market value.
Investments in open-end investment
companies, including money market funds, are valued at their latest net asset value.
Investments for which market
quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by
and under the general supervision of the Board of Trustees. If a security or class of securities (such as foreign securities) is valued at fair value, such value is likely to be different from the quoted or published
price for the security, if available.
The determination of fair value
often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and estimated risk premiums. Multiple inputs from various sources may be used
to determine fair value.
26
|
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
Notes to Financial Statements (continued)
October 31, 2019
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, to meet its investment objectives. Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more securities,
currencies, commodities, indices, or other assets or instruments. Derivatives may be used to increase investment flexibility (including to maintain cash reserves while maintaining desired exposure to certain assets),
for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. The Fund may also use derivative instruments to mitigate certain investment risks,
such as foreign currency exchange rate risk, interest rate risk and credit risk. Derivatives may involve various risks, including the potential inability of the counterparty to fulfill its obligations under the terms
of the contract, the potential for an illiquid secondary market (making it difficult for the Fund to sell or terminate, including at favorable prices) and the potential for market movements which may expose the Fund
to gains or losses in excess of the amount shown in the Statement of Assets and Liabilities. The notional amounts of derivative instruments, if applicable, are not recorded in the financial statements.
A derivative instrument may suffer
a marked-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform its
obligations under the contract. The Fund’s risk of loss from counterparty credit risk on over-the-counter derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by
the Fund and the amount of any variation margin held by the counterparty, plus any replacement costs or related amounts. With exchange-traded or centrally cleared derivatives, there is reduced counterparty credit risk
to the Fund since the clearinghouse or central counterparty (CCP) provides some protection in the case of clearing member default. The clearinghouse or CCP stands between the buyer and the seller of the contract;
therefore, additional counterparty credit risk is failure of the clearinghouse or CCP. However, credit risk still exists in exchange-traded or centrally cleared derivatives with respect to initial and variation margin
that is held in a broker’s customer account. While brokers are required to segregate customer margin from their own assets, in the event that a broker becomes insolvent or goes into bankruptcy and at that time
there is a shortfall in the aggregate amount of margin held by the broker for all its clients, U.S. bankruptcy laws will typically allocate that shortfall on a pro-rata basis across all the broker’s customers
(including the Fund), potentially resulting in losses to the Fund.
In order to better define its
contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (ISDA Master Agreement)
or similar agreement with its derivatives contract counterparties. An ISDA Master Agreement is an agreement between the Fund and a counterparty that governs over-the-counter derivatives and typically 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 instrument’s payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment
in the event of default (close-out netting), including the bankruptcy or insolvency of the counterparty. Note, however, that bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or
prohibitions against the right of offset or netting in bankruptcy, insolvency or other events.
Collateral (margin) requirements
differ by type of derivative. Margin requirements are established by the clearinghouse or CCP for exchange-traded and centrally cleared derivatives. Brokers can ask for margin in excess of the minimum in certain
circumstances. Collateral terms are contract specific for over-the-counter derivatives. For over-the-counter derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by
netting the marked-to-market amount for each transaction under such agreement and comparing that amount to the value of any variation margin currently pledged by the Fund and/or the counterparty. Generally, the amount
of collateral due from or to a party has to exceed a minimum transfer amount threshold (e.g., $250,000) before a transfer has to be made. To the extent amounts due to the Fund from its counterparties are not fully
collateralized, contractually or otherwise, the Fund bears the risk of loss from counterparty nonperformance. The Fund may also pay interest expense on cash collateral received from the broker. Any interest expense
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
27
|
Notes to Financial Statements (continued)
October 31, 2019
paid by the Fund is shown on the Statement of
Operations. The Fund attempts to mitigate counterparty risk by only entering into agreements with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial
stability of those counterparties.
Certain ISDA Master Agreements
allow counterparties of over-the-counter derivatives transactions to terminate derivatives contracts prior to maturity in the event the Fund’s net asset value declines by a stated percentage over a specified
time period or if the Fund fails to meet certain terms of the ISDA Master Agreement, which would cause the Fund to accelerate payment of any net liability owed to the counterparty. The Fund also has termination rights
if the counterparty fails to meet certain terms of the ISDA Master Agreement. In determining whether to exercise such termination rights, the Fund would consider, in addition to counterparty credit risk, whether
termination would result in a net liability owed from the counterparty.
For financial reporting purposes,
the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statement of Assets and Liabilities.
Futures contracts
Futures contracts are
exchange-traded and represent commitments for the future purchase or sale of an asset at a specified price on a specified date. The Fund bought and sold futures contracts to manage the duration and yield curve
exposure of the Fund versus the benchmark and to manage exposure to movements in interest rates. These instruments may be used for other purposes in future periods. Upon entering into futures contracts, the Fund bears
risks that it may not achieve the anticipated benefits of the futures contracts and may realize a loss. Additional risks include counterparty credit risk, the possibility of an illiquid market, and that a change in
the value of the contract or option may not correlate with changes in the value of the underlying asset.
Upon entering into a futures
contract, the Fund deposits cash or securities with the broker, known as a futures commission merchant (FCM), in an amount sufficient to meet the initial margin requirement. The initial margin deposit must be
maintained at an established level over the life of the contract. Cash deposited as initial margin is recorded in the Statement of Assets and Liabilities as margin deposits. Securities deposited as initial margin are
designated in the Portfolio of Investments. Subsequent payments (variation margin) are made or received by the Fund each day. The variation margin payments are equal to the daily change in the contract value and are
recorded as variation margin receivable or payable and are offset in unrealized gains or losses. The Fund 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 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 October 31, 2019:
Amount of realized gain (loss) on derivatives recognized in income
|
Risk exposure category
|
Futures
contracts
($)
|
Interest rate risk
|
(290,744)
|
28
|
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
Notes to Financial Statements (continued)
October 31, 2019
The following table is a summary
of the average outstanding volume by derivative instrument for the year ended October 31, 2019:
Derivative instrument
|
Average notional
amounts ($)*
|
Futures contracts — short
|
4,203,088
|
*
|
Based on the ending daily outstanding amounts for the year ended October 31, 2019.
|
Delayed delivery securities
The Fund may trade securities on
other than normal settlement terms, including securities purchased or sold on a “when-issued” or "forward commitment" basis. This may increase risk to the Fund since the other party to the transaction may
fail to deliver, which could cause the Fund to subsequently invest at less advantageous prices. The Fund designates cash or liquid securities in an amount equal to the delayed delivery commitment.
Security transactions
Security transactions are accounted
for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income recognition
Interest income is recorded on an
accrual basis. Market premiums and discounts, including original issue discounts, are amortized and accreted, respectively, over the expected life of the security on all debt securities, unless otherwise noted.
The Fund may place a debt security
on non-accrual status and reduce related interest income when it becomes probable that the interest will not be collected and the amount of uncollectible interest can be reasonably estimated. A defaulted debt security
is removed from non-accrual status when the issuer resumes interest payments or when collectibility of interest is reasonably assured.
Dividend income is recorded on the
ex-dividend date.
Expenses
General expenses of the Trust are
allocated to the Fund and other funds of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are
charged to the Fund. Expenses directly attributable to a specific class of shares are charged to that share class.
Determination of class net asset
value
All income, expenses (other than
class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on
the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each
year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its net tax-exempt and investment company taxable income and net capital
gain, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net
income and certain other amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Distributions to shareholders
Distributions from net investment
income, if any, are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal
income tax regulations, which may differ from GAAP.
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
29
|
Notes to Financial Statements (continued)
October 31, 2019
Guarantees and indemnifications
Under the Trust’s
organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition,
certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims
that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
Recent accounting pronouncements
Accounting Standards Update 2017-08
Premium Amortization on Purchased Callable Debt Securities
In March 2017, the Financial
Accounting Standards Board issued Accounting Standards Update (ASU) No. 2017-08 Premium Amortization on Purchased Callable Debt Securities. ASU No. 2017-08 updates the accounting standards to shorten the amortization
period for certain purchased callable debt securities, held at a premium, to be amortized to the earliest call date. The update applies to securities with explicit, noncontingent call features that are callable at
fixed prices and on preset dates. The standard is effective for annual periods beginning after December 15, 2018 and interim periods within those fiscal years. Management does not expect the implementation of this
guidance to have a material impact on the financial statement amounts and footnote disclosures.
Accounting Standards Update 2018-13
Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement
In August 2018, the Financial
Accounting Standards Board issued Accounting Standards Update (ASU) No. 2018-13 Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The standard is effective for annual periods
beginning after December 15, 2019 and interim periods within those fiscal years, with early adoption permitted. After evaluation, management determined to adopt the ASU effective for the period ended July 31, 2019 and
all subsequent periods. To comply with the ASU, management implemented disclosure changes which include removal of the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, removal
of the policy for the timing of transfers between levels, removal of the description of the Level 3 valuation processes, as well as modifications to the measurement uncertainty disclosure.
Note 3. Fees and other
transactions with affiliates
Management services fees
The Fund has entered into a
Management Agreement with Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). Under the Management Agreement, the
Investment Manager provides the Fund with investment research and advice, as well as administrative and accounting services. The management services fee is an annual fee that is equal to a percentage of the
Fund’s daily net assets that declines from 0.47% to 0.31% as the Fund’s net assets increase. The effective management services fee rate for the year ended October 31, 2019 was 0.46% of the Fund’s
average daily net assets.
Compensation of board members
Members of the Board of Trustees
who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. These members of the Board of Trustees
may participate in a Deferred Compensation Plan (the Deferred Plan) which may be terminated at any time. Obligations of the Deferred Plan will be paid solely out of the Fund’s assets, and all amounts payable
under the Deferred Plan constitute a general unsecured obligation of the Fund.
Compensation of Chief Compliance
Officer
The Board of Trustees has appointed
a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated
to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
30
|
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
Notes to Financial Statements (continued)
October 31, 2019
Transfer agency fees
Under a Transfer and Dividend
Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for
providing transfer agency services to the Fund. The Transfer Agent has contracted with DST Asset Manager Solutions, Inc. (DST) to serve as sub-transfer agent. The Transfer Agent pays the fees of DST for services as
sub-transfer agent and DST is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
The Fund pays the Transfer Agent a
monthly transfer agency fee based on the number or the average value of accounts, depending on the type of account. In addition, the Fund pays the Transfer Agent a fee for shareholder services based on the number of
accounts or on a percentage of the average aggregate value of the Fund’s shares maintained in omnibus accounts up to the lesser of the amount charged by the financial intermediary or a cap established by the
Board of Trustees from time to time.
The Transfer Agent also receives
compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees. Total transfer agency fees for Institutional 2 Class and Institutional 3 Class shares are subject to an
annual limitation of not more than 0.07% and 0.02%, respectively, of the average daily net assets attributable to each share class. In addition, prior to March 1, 2019, Institutional 2 Class shares were subject to a
contractual transfer agency fee annual limitation of not more than 0.05% of the average daily net assets attributable to Institutional 2 Class shares.
For the year ended October 31,
2019, the Fund’s effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
|
Effective rate (%)
|
Class A
|
0.08
|
Advisor Class
|
0.08
|
Class C
|
0.08
|
Institutional Class
|
0.08
|
Institutional 2 Class
|
0.07
|
Institutional 3 Class
|
0.01
|
An annual minimum account balance
fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum
account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the year ended October 31, 2019, these minimum account balance fees reduced total expenses
of the Fund by $340.
Distribution and service fees
The Fund has entered into an
agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder
services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the
Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a
monthly service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class A and Class C shares of the Fund. Also under the Plans, the Fund pays a monthly
distribution fee to the Distributor at the maximum annual rate of 0.75% of the average daily net assets attributable to Class C shares of the Fund.
The Distributor has voluntarily
agreed to waive a portion of the distribution fee for Class C shares so that the distribution fee does not exceed 0.45% annually of the average daily net assets attributable to Class C shares. This arrangement may be
modified or terminated by the Distributor at any time.
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
31
|
Notes to Financial Statements (continued)
October 31, 2019
Sales charges (unaudited)
Sales charges, including front-end
charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the year ended October 31, 2019, if any, are listed below:
|
Front End (%)
|
CDSC (%)
|
Amount ($)
|
Class A
|
3.00
|
0.75(a)
|
75,561
|
Class C
|
—
|
1.00(b)
|
2,326
|
(a)
|
This charge is imposed on certain investments of $500,000 or more if redeemed within 12 months after purchase.
|
(b)
|
This charge applies to redemptions within 12 months after purchase, with certain limited exceptions.
|
The Fund’s other share
classes are not subject to sales charges.
Expenses waived/reimbursed by the
Investment Manager and its affiliates
The Investment Manager and certain
of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole
discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s
custodian, do not exceed the following annual rate(s) as a percentage of the class’ average daily net assets:
|
March 1, 2019
through
February 29, 2020
|
Prior to
March 1, 2019
|
Class A
|
0.79%
|
0.82%
|
Advisor Class
|
0.54
|
0.57
|
Class C
|
1.54
|
1.57
|
Institutional Class
|
0.54
|
0.57
|
Institutional 2 Class
|
0.53
|
0.54
|
Institutional 3 Class
|
0.47
|
0.50
|
Under the agreement governing
these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes
(including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and
brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed
money, interest, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be modified or amended only with approval from
the Investment Manager, certain of its affiliates and the Fund. Reflected in the contractual cap commitment, prior to March 1, 2019, is the Transfer Agent’s contractual agreement to limit total transfer agency
fees to an annual rate of not more than 0.05% for Institutional 2 Class of the average daily net assets attributable to Institutional 2 Class. Any fees waived and/or expenses reimbursed under the expense reimbursement
arrangements described above are not recoverable by the Investment Manager or its affiliates in future periods. Class C distribution fees waived by the Distributor, as discussed above, are in addition to the
waiver/reimbursement commitment under the agreement.
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 October 31, 2019, these
differences were primarily due to differing treatment for deferral/reversal of wash sale losses, trustees’ deferred compensation, tax straddles, distributions, and principal and/or interest of fixed income
securities. 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.
32
|
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
Notes to Financial Statements (continued)
October 31, 2019
The Fund did not have any permanent
differences; therefore, no reclassifications were made.
The tax character of distributions
paid during the years indicated was as follows:
Year Ended October 31, 2019
|
Year Ended October 31, 2018
|
Ordinary
income ($)
|
Tax-exempt
income ($)
|
Long-term
capital gains ($)
|
Total ($)
|
Ordinary
income ($)
|
Tax-exempt
income ($)
|
Long-term
capital gains ($)
|
Total ($)
|
742
|
17,689,857
|
1,209,430
|
18,900,029
|
3,079
|
18,196,447
|
2,521,505
|
20,721,031
|
Short-term capital gain
distributions, if any, are considered ordinary income distributions for tax purposes.
At October 31, 2019, the components
of distributable earnings on a tax basis were as follows:
Undistributed
ordinary income ($)
|
Undistributed tax-
exempt income ($)
|
Undistributed
long-term
capital gains ($)
|
Capital loss
carryforwards ($)
|
Net unrealized
appreciation ($)
|
1,756,800
|
2,617,856
|
3,643,791
|
—
|
33,839,457
|
At October 31, 2019, 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) ($)
|
Net unrealized
appreciation ($)
|
562,259,230
|
36,848,705
|
(3,009,248)
|
33,839,457
|
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 $246,358,665 and $197,374,688, respectively, for the year ended October 31, 2019. The amount of purchase and
sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Interfund
lending
Pursuant to an exemptive order
granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and,
except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject
to certain restrictions.
Interfund loans are subject to the
risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject
to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund’s activity in the
Interfund Program during the year ended October 31, 2019 was as follows:
Borrower or lender
|
Average loan
balance ($)
|
Weighted average
interest rate (%)
|
Number of days
with outstanding loans
|
Borrower
|
2,800,000
|
2.82
|
1
|
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
33
|
Notes to Financial Statements (continued)
October 31, 2019
Interest expense incurred by the
Fund is recorded as Interfund lending in the Statement of Operations. The Fund had no outstanding interfund loans at October 31, 2019.
Note 7. Line of credit
The Fund has access to a
revolving credit facility with a syndicate of banks led by Citibank, N.A., HSBC Bank USA, N.A. and JPMorgan Chase Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for
other temporary or emergency purposes. The credit facility, which is a collective agreement between the Fund and certain other funds managed by the Investment Manager or an affiliated investment manager, severally and
not jointly, permits collective borrowings up to $1 billion. Interest is charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the
one-month LIBOR rate and (iii) the overnight bank funding rate, plus in each case, 1.00%. Each borrowing under the credit facility matures no later than 60 days after the date of borrowing. The Fund also pays a
commitment fee equal to its pro rata share of the unused amount of the credit facility at a rate of 0.15% per annum. The commitment fee is included in other expenses in the Statement of Operations. This agreement
expires annually in December unless extended or renewed.
The Fund had no borrowings during
the year ended October 31, 2019.
Note 8. Significant
risks
Credit risk
Credit risk is the risk that the
value of debt securities in the Fund’s portfolio may decline because the issuer defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations,
such as making payments to the Fund when due. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. Lower rated or unrated debt instruments held by the Fund may
present increased credit risk as compared to higher-rated debt instruments.
Geographic concentration risk
Because the Fund invests
substantially in municipal securities issued by the state identified in the Fund’s name and political sub-divisions of that state, the Fund will be particularly affected by adverse tax, legislative, regulatory,
demographic or political changes as well as changes impacting the state’s financial, economic or other condition and prospects. In addition, because of the relatively small number of issuers of tax-exempt
securities in the state, the Fund may invest a higher percentage of assets in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly. The value of municipal and other
securities owned by the Fund also may be adversely affected by future changes in federal or state income tax laws.
Interest rate risk
Interest rate risk is the risk of
losses attributable to changes in interest rates. In general, if prevailing interest rates rise, the values of debt securities tend to fall, and if interest rates fall, the values of debt securities tend to rise.
Actions by governments and central banking authorities can result in increases in interest rates. Increasing interest rates may negatively affect the value of debt securities held by the Fund, resulting in a negative
impact on the Fund’s performance and net asset value per share. In general, the longer the maturity or duration of a debt security, the greater its sensitivity to changes in interest rates.
Liquidity risk
Liquidity risk is the risk
associated with a lack of marketability of investments which may make it difficult to sell the investment at a desirable time or price. Changing regulatory, market or other conditions or environments (for example, the
interest rate or credit environments) may adversely affect the liquidity of the Fund’s investments. The Fund may have to accept a lower selling price for the holding, sell other investments, or forego another,
more appealing investment opportunity. Generally, the less liquid the market at the time the Fund sells a portfolio investment, the greater the risk of loss or decline of value to the Fund. A less liquid market can
lead to an increase in Fund redemptions, which may negatively impact Fund performance and net asset value per share, including, for example, if the Fund is forced to sell securities in a down market.
34
|
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
Notes to Financial Statements (continued)
October 31, 2019
Non-diversification risk
A non-diversified fund is permitted
to invest a greater percentage of its total assets in fewer issuers than a diversified fund. This increases the risk that a change in the value of any one investment held by the Fund could affect the overall value of
the Fund more than it would affect that of a diversified fund holding a greater number of investments. Accordingly, the Fund’s value will likely be more volatile than the value of a more diversified fund.
Shareholder concentration risk
At October 31, 2019, one
unaffiliated shareholder of record owned 21.8% of the outstanding shares of the Fund in one or more accounts. The Fund has no knowledge about whether any portion of those shares was owned beneficially. Affiliated
shareholders of record owned 29.5% of the outstanding shares of the Fund in one or more accounts. Subscription and redemption activity by concentrated accounts may have a significant effect on the operations of the
Fund. In the case of a large redemption, the Fund may be forced to sell investments at inopportune times, including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of
less liquid positions. Large redemptions could result in decreased economies of scale and increased operating expenses for non-redeeming Fund shareholders.
Note 9. Subsequent
events
Management has evaluated the
events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 10. Information
regarding pending and settled legal proceedings
Ameriprise Financial and certain
of its affiliates have historically been involved in a number of legal, arbitration and regulatory proceedings, including routine litigation, class actions, and governmental actions, concerning matters arising in
connection with the conduct of their business activities. Ameriprise Financial believes that the Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject
of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with
the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and regulatory matters that relate to
Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that
these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe
proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to
uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines,
penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial.
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
35
|
Report of Independent Registered Public
Accounting Firm
To the Board of Trustees of Columbia
Funds Series Trust I and Shareholders of Columbia Strategic California Municipal Income Fund
Opinion on the Financial
Statements
We have audited the accompanying
statement of assets and liabilities, including the portfolio of investments, of Columbia Strategic California Municipal Income Fund (one of the funds constituting Columbia Funds Series Trust I, hereafter referred to
as the "Fund") as of October 31, 2019, the related statement of operations for the year ended October 31, 2019, the statement of changes in net assets for each of the two years in the period ended October 31, 2019,
including the related notes, and the financial highlights for each of the periods indicated therein (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 October 31, 2019, 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 October 31, 2019 and the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the
responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of
the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these
financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud.
Our audits included performing
procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test
basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating
the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2019 by correspondence with the custodian and brokers; when replies were not received
from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Minneapolis, Minnesota
December 20, 2019
We have served as the auditor of
one or more investment companies within the Columbia Funds Complex since 1977.
36
|
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
Federal Income Tax
Information
(Unaudited)
The Fund hereby designates the
following tax attributes for the fiscal year ended October 31, 2019. Shareholders will be notified in early 2020 of the amounts for use in preparing 2019 income tax returns.
Capital
gain
dividend
|
Exempt-
interest
dividends
|
$3,878,156
|
99.99%
|
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.
Exempt-interest dividends. The
percentage of net investment income distributed during the fiscal year that qualifies as exempt-interest dividends for federal income tax purposes. A portion of the income may be subject to federal alternative minimum
tax.
TRUSTEES AND
OFFICERS
The Board oversees the Fund’s
operations and appoints 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 Trustees 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. The year set forth beneath Length of Service
in the table below is the year in which the Trustee was first appointed or elected as Trustee to any Fund currently in the Columbia Funds Complex or a predecessor thereof. Under current Board policy, members serve
terms of indefinite duration.
Independent trustees
Name, address, year of birth
|
Position held with the Trust and length of service
|
Principal occupation(s) during the past five years and other relevant professional experience
|
Number of Funds in the Columbia Fund Complex overseen
|
Other directorships held by Trustee during the past five years
|
Janet Langford Carrig
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1957
|
Trustee
1996
|
Senior Vice President, General Counsel and Corporate Secretary, ConocoPhillips (independent energy company), September 2007-October 2018
|
71
|
Director, EQT Corporation (natural gas producer)
|
Douglas A. Hacker
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1955
|
Trustee and Chairman of the Board
1996
|
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
|
71
|
Director, Spartan Nash Company (food distributor); Director, Aircastle Limited (aircraft leasing); 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
|
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
37
|
TRUSTEES AND OFFICERS (continued)
Independent trustees (continued)
Name, address, year of birth
|
Position held with the Trust and length of service
|
Principal occupation(s) during the past five years and other relevant professional experience
|
Number of Funds in the Columbia Fund Complex overseen
|
Other directorships held by Trustee during the past five years
|
Nancy T. Lukitsh
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1956
|
Trustee
2011
|
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
|
71
|
None
|
David M. Moffett
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1952
|
Trustee
2011
|
Retired. Consultant to Bridgewater and Associates
|
71
|
Director, CSX Corporation (transportation suppliers); Director, Genworth Financial, Inc. (financial and insurance products and services);
Director, PayPal Holdings Inc. (payment and data processing services); Trustee, University of Oklahoma Foundation; former Director, eBay Inc. (online trading community), 2007-2015; and former Director, CIT Bank, CIT
Group Inc. (commercial and consumer finance), 2010-2016
|
John J. Neuhauser
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1943
|
Trustee
1984
|
President, Saint Michael’s College, August 2007-June 2018; Director or Trustee of several non-profit organizations, including University
of Vermont Medical Center; Academic Vice President and Dean of Faculties, Boston College, August 1999-October 2005; University Professor, Boston College, November 2005-August 2007
|
71
|
Director, Liberty All-Star Equity Fund and Liberty All- Star Growth Fund (closed-end funds)
|
Patrick J. Simpson
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1944
|
Trustee
2000
|
Of Counsel, Perkins Coie LLP (law firm) since 2015; Partner, Perkins Coie LLP, 1988-2014
|
71
|
Former Director, M Fund, Inc. (M Funds mutual fund family), July 2018-July 2019
|
Consultants to the Independent
Trustees*
Name, address, year of birth
|
Position held with the Trust 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
|
J. Kevin Connaughton
c/o Columbia
Management Investment
Advisers, LLC,
225 Franklin Street
Mail Drop BX32 05228,
Boston, MA 02110
1964
|
Independent Trustee Consultant
2016
|
Independent Trustee Consultant, Columbia Funds since March 2016; Adjunct Professor of Finance, Bentley
University since November 2017; Managing Director and General Manager of Mutual Fund Products, Columbia Management Investment Advisers, LLC, May 2010-February 2015; President, Columbia Funds, 2009-2015; and senior
officer of Columbia Funds and affiliated funds, 2003-2015
|
71
|
Director, The Autism Project since March 2015; former Trustee, New Century Portfolios, March 2015-December 2017; formerly on
Board of Governors, Gateway Healthcare, January 2016 – December 2017
|
38
|
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
TRUSTEES AND OFFICERS (continued)
Consultants to the Independent Trustees* (continued)
Name, address, year of birth
|
Position held with the Trust 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
|
Olive Darragh
c/o Columbia
Management Investment
Advisers, LLC,
225 Franklin Street,
Mail Drop BX32 05228,
Boston, MA 02110
1962
|
Independent Trustee Consultant 2019
|
Independent Trustee Consultant, Columbia Funds since June 2019; Managing Director of Darragh Inc. (a strategy and talent management consulting
firm) since 2010; Founder and CEO, Zolio (an investment management talent identification platform) since 2004; Partner, Tudor Investments, 2004-2010; Senior Partner, McKinsey & Company, 2001-2004
|
71
|
Director, University of Edinburgh Business School; former Director, Boston Public Library Foundation
|
Natalie A. Trunow
c/o Columbia
Management Investment
Advisers, LLC,
225 Franklin Street
Mail Drop BX32 05228,
Boston, MA 02110
1967
|
Independent Trustee Consultant
2016
|
Independent Trustee Consultant, Columbia Funds since September 2016; Chief Executive Officer, Millennial
Portfolio Solutions LLC (asset management and consulting services) since January 2016; Director of Investments, Casey Family Programs, April 2016-September 2016; Senior Vice President and Chief Investment Officer,
Calvert Investments, August 2008-January 2016; Section Head and Portfolio Manager, General Motors Asset Management, June 1997-August 2008
|
71
|
Director, Health Services for Children with Special Needs, Inc.; Director, Consumer Credit Counseling Services (formerly
Guidewell Financial Solutions)
|
*
|
J. Kevin Connaughton was appointed consultant to the Independent Trustees effective March 1, 2016. Olive Darragh was appointed consultant to the Independent Trustees effective June
10, 2019. Natalie A. Trunow was appointed consultant to the Independent Trustees effective September 1, 2016. Shareholders of the Funds are expected to be asked to elect each of Mr. Connaughton, Ms. Darragh and Ms.
Trunow as a Trustee at a future shareholder meeting.
|
Interested trustee affiliated with
Investment Manager*
Name, address, year of birth
|
Position held with the Trust 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
|
William F. Truscott
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
1960
|
Trustee
2012
|
Chairman of the Board and President, Columbia Management Investment Advisers, LLC since May 2010 and
February 2012, respectively; Chief Executive Officer, Global Asset Management, Ameriprise Financial, Inc. since September 2012 (previously Chief Executive Officer, U.S. Asset Management & President, Annuities, May
2010-September 2012); Director and Chief Executive Officer, Columbia Management Investment Distributors, Inc. since May 2010 and February 2012, respectively; Chairman of the Board and Chief Executive Officer,
RiverSource Distributors, Inc. since 2006; Director, Threadneedle Asset Management Holdings, SARL since 2014; President and Chief Executive Officer, Ameriprise Certificate Company, 2006-August 2012
|
192
|
Chairman of the Board, Columbia Management Investment Advisers, LLC since May 2010; Director, Columbia Management Investment
Distributors, Inc. since May 2010; former Director, Ameriprise Certificate Company, August 2006 - January 2013
|
*
|
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, visiting columbiathreadneedleus.com/investor/ or contacting your
financial intermediary.
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
39
|
TRUSTEES AND OFFICERS (continued)
The Board has appointed 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, including principal occupations during the past five years, although their specific titles may have varied over the
period. In addition to Mr. Truscott, who is Senior Vice President, 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
|
Christopher O. Petersen
5228 Ameriprise
Financial Center
Minneapolis, MN 55474
Born 1970
|
President and Principal Executive Officer (2015)
|
Vice President and Lead Chief Counsel, Ameriprise Financial, Inc. since January 2015 (previously Vice President and Chief Counsel, January
2010 - December 2014); officer of Columbia Funds and affiliated funds since 2007.
|
Michael G. Clarke
225 Franklin Street
Boston, MA 02110
Born 1969
|
Chief Financial Officer (Principal Financial Officer) (2009) and Senior Vice President (2019)
|
Vice President, Head of North American Operations, and Co-Head of Global Operations, Columbia Management Investment Advisers, LLC, since June
2019 (previously Vice President – Accounting and Tax, May 2010 – May 2019); senior officer of Columbia Funds and affiliated funds since 2002 (previously Treasurer and Chief Accounting Officer, January 2009
- January 2019 and December 2015 - January 2019, respectively).
|
Joseph Beranek
5890 Ameriprise
Financial Center
Minneapolis, MN 55474
Born 1965
|
Treasurer and Chief Accounting Officer (Principal Accounting Officer) (2019)
|
Vice President — Mutual Fund Accounting and Financial Reporting, Columbia Management Investment Advisers, LLC, since December 2018 and
March 2017, respectively (previously Vice President — Pricing and Corporate Actions, May 2010 - March 2017).
|
Paul B. Goucher
485 Lexington Avenue
New York, NY 10017
Born 1968
|
Senior Vice President (2011) and Assistant Secretary (2008)
|
Senior Vice President and Assistant General Counsel, Ameriprise Financial, Inc. since January 2017 (previously Vice President and Lead Chief
Counsel, November 2008 - January 2017 and January 2013 - January 2017, respectively); Vice President, Chief Legal Officer and Assistant Secretary, Columbia Management Investment Advisers, LLC since March 2015
(previously Vice President and Assistant Secretary, May 2010 – March 2015).
|
Thomas P. McGuire
225 Franklin Street
Boston, MA 02110
Born 1972
|
Senior Vice President and Chief Compliance Officer (2012)
|
Vice President — Asset Management Compliance, Ameriprise Financial, Inc., since May 2010; Chief Compliance Officer, Ameriprise
Certificate Company since September 2010.
|
Colin Moore
225 Franklin Street
Boston, MA 02110
Born 1958
|
Senior Vice President (2010)
|
Executive Vice President and Global Chief Investment Officer, Ameriprise Financial, Inc., since July 2013; Executive Vice President and Global
Chief Investment Officer, Columbia Management Investment Advisers, LLC since July 2013.
|
Ryan C. Larrenaga
225 Franklin Street
Boston, MA 02110
Born 1970
|
Senior Vice President (2017), Chief Legal Officer (2017), and Secretary (2015)
|
Vice President and Chief Counsel, Ameriprise Financial, Inc. since August 2018 (previously Vice President and Group Counsel, August 2011 -
August 2018); officer of Columbia Funds and affiliated funds since 2005.
|
Michael E. DeFao
225 Franklin Street
Boston, MA 02110
Born 1968
|
Vice President (2011) and Assistant Secretary (2010)
|
Vice President and Chief Counsel, Ameriprise Financial, Inc. since May 2010.
|
Lyn Kephart-Strong
5228 Ameriprise
Financial Center
Minneapolis, MN 55474
Born 1960
|
Vice President (2015)
|
President, Columbia Management Investment Services Corp. since October 2014; Vice President & Resolution Officer,
Ameriprise Trust Company since August 2009.
|
40
|
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
Board Consideration
and Approval of Management
Agreement
On June 12, 2019, the Board of
Trustees (the Board) and the Trustees who are not interested persons (as defined in the Investment Company Act of 1940) (the Independent Trustees) of Columbia Funds Series Trust I (the Trust) unanimously approved the
continuation of the Management Agreement (the Management Agreement) with Columbia Management Investment Advisers, LLC (the Investment Manager) with respect to Columbia Strategic California Municipal Income Fund (the
Fund), a series of the Trust. As detailed below, the Board’s Advisory Fees and Expenses Committee (the Committee) and the Board met on multiple occasions to review and discuss, among themselves, with the
management team of the Investment Manager and with an independent fee consultant, materials provided by the Investment Manager, the independent fee consultant and others before determining to approve the continuation
of the Management Agreement.
In connection with their
deliberations regarding the continuation of the Management Agreement, the Committee and the Board evaluated materials requested from the Investment Manager regarding the Fund and the Management Agreement, and
discussed these materials with representatives of the Investment Manager at Committee meetings held on March 5, 2019, April 25, 2019 and June 11, 2019 and at Board meetings held on March 6, 2019 and June 12, 2019. In
addition, the Board and its various committees consider matters bearing on the Management Agreement at other meetings throughout the year and in prior years and meet regularly with senior management of the Trust and
the Investment Manager. Through the Board’s Investment Oversight Committees, Trustees also meet with selected portfolio managers of the funds the Trustees oversee and with other investment personnel at various
times throughout the year. The Committee and the Board also consulted with the independent fee consultant, Fund counsel and the Independent Trustees’ independent legal counsel, who advised on various matters
with respect to the Committee’s and the Board’s considerations and otherwise assisted the Committee and the Board in their deliberations. On June 11, 2019, the Committee recommended that the Board approve
the continuation of the Management Agreement. On June 12, 2019, the Board, including the Independent Trustees, voting separately, unanimously approved the continuation of the Management Agreement for the Fund.
The Committee and the Board
considered all information that they, their legal counsel or the Investment Manager believed reasonably necessary to evaluate and to determine whether to recommend for approval or approve the continuation of the
Management Agreement. The information and factors considered by the Committee and the Board in recommending for approval or approving the continuation of the Management Agreement for the Fund included the
following:
•
|
Information on the investment performance of the Fund relative to the performance of a group of mutual funds determined to be comparable to the Fund by an independent third-party data provider, as well as
performance relative to benchmarks;
|
•
|
Information on the Fund’s management fees and total expenses, including information comparing the Fund’s expenses to those of a group of comparable mutual funds, as determined by the independent
third-party data provider;
|
•
|
The Investment Manager’s agreement to contractually limit or cap total operating expenses for the Fund through February 29, 2020 so that total operating expenses (excluding certain fees and expenses, such as
transaction costs and certain other investment related expenses, interest, taxes, acquired fund fees and expenses, and infrequent and/or unusual expenses) would not exceed a specified annual rate, as a percentage of
the Fund’s net assets;
|
•
|
The terms and conditions of the Management Agreement;
|
•
|
The current and proposed terms and conditions of other agreements and arrangements with affiliates of the Investment Manager relating to the operations of the Fund, including agreements with respect to the provision
of distribution, transfer agency and shareholder services to the Fund;
|
•
|
Descriptions of various functions performed by the Investment Manager under the Management Agreement, including portfolio management and portfolio trading practices;
|
•
|
Information regarding the management fees of similarly-managed portfolios of other clients of the Investment Manager, including institutional accounts and collective trusts;
|
•
|
Information regarding the reputation, regulatory history and resources of the Investment Manager, including information regarding senior management, portfolio managers and other personnel;
|
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
41
|
Board Consideration and Approval of
Management
Agreement (continued)
•
|
Information regarding the capabilities of the Investment Manager with respect to compliance monitoring services, including an assessment of the Investment Manager’s compliance system by the Fund’s Chief
Compliance Officer; and
|
•
|
The profitability to the Investment Manager and its affiliates from their relationships with the Fund.
|
Nature, extent and quality of
services provided under the Management Agreement
The Committee and the Board
considered the nature, extent and quality of services provided to the Fund by the Investment Manager and its affiliates under the Management Agreement and under separate agreements for the provision of transfer agency
and shareholder services, and the resources dedicated to the Fund and the other Columbia Funds by the Investment Manager and its affiliates. The Committee and the Board considered, among other things, the Investment
Manager’s ability to attract, motivate and retain highly qualified research, advisory and supervisory investment professionals (including compensation programs for personnel involved in fund management,
reputation and other attributes), the portfolio management services provided by those investment professionals, and the quality of the Investment Manager’s investment research capabilities and trade execution
services. The Committee and the Board also considered the potential benefits to shareholders of investing in a mutual fund that is part of a fund complex offering exposure to a variety of asset classes and investment
disciplines and providing a variety of fund and shareholder services.
The Committee and the Board also
considered the professional experience and qualifications of the senior personnel of the Investment Manager, which included consideration of the Investment Manager’s experience with funds using an investment
strategy similar to that used by the Investment Manager for the Fund. The Committee and the Board noted the compliance programs of and the compliance-related resources provided to the Fund by the Investment Manager
and its affiliates and the resources dedicated by the Investment Manager and its affiliates to risk management, and considered the Investment Manager’s ability to provide administrative services to the Fund and
coordinate the activities of the Fund’s other service providers. After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the
nature, extent and quality of the services provided to the Fund under the Management Agreement supported the continuation of the Management Agreement.
Investment performance
The Committee and the Board
reviewed information about the performance of the Fund over various time periods, including performance information relative to benchmarks, information that compared the performance of the Fund to the performance of a
group of comparable mutual funds as determined by the independent third-party data provider, and information and analysis provided by the independent fee consultant. The Committee and the Board also reviewed a
description of the third party’s methodology for identifying the Fund’s peer groups for purposes of performance and expense comparisons. Although the Fund’s performance lagged that of a relevant peer
group for certain (although not necessarily all) periods, the Committee and the Board concluded that other factors relevant to performance were sufficient, in light of other considerations, to support continuation of
the Management Agreement. Those factors included one or more of the following: (i) that the Fund’s performance, although lagging in certain recent periods, was stronger over the longer term; (ii) that the
underperformance was attributable, to a significant extent, to investment decisions that were reasonable and consistent with the Fund’s investment strategy and policies and that the Fund was performing within a
reasonable range of expectations, given those investment decisions, market conditions and the Fund’s investment strategy; (iii) that the Fund’s performance was competitive when compared to other relevant
performance benchmarks or peer groups; and (iv) that the Investment Manager had taken or was taking steps designed to help improve the Fund’s investment performance, including, but not limited to, replacing
portfolio managers, enhancing the resources supporting the portfolio managers, or modifying investment strategies.
The Committee and the Board noted
that, through December 31, 2018, the Fund’s performance was in the fifty-ninth, sixty-fourth and forty-ninth percentile (where the best performance would be in the first percentile) of its category selected by
the independent third-party data provider for the purposes of performance comparisons for the one-, three- and five-year periods, respectively.
42
|
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
Board Consideration and Approval of
Management
Agreement (continued)
The Committee and the Board also considered the
Investment Manager’s performance and reputation generally, the Investment Manager’s historical responsiveness to Board concerns about performance, and the Investment Manager’s willingness to take
steps intended to improve performance. After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the performance of the Fund and the
Investment Manager was sufficient, in light of other considerations, to support the continuation of the Management Agreement.
Investment management fee rates
and other expenses
The Committee and the Board
considered the management fees charged to the Fund under the Management Agreement as well as the total expenses incurred by the Fund. In assessing the reasonableness of the fees under the Management Agreement, the
Committee and the Board considered, among other information, the Fund’s total expense ratio as a percentage of average daily net assets. The Committee and the Board considered data provided by the independent
third-party data provider and the independent fee consultant. The Committee and the Board noted that, as of December 31, 2018, the Fund’s actual management fee and net total expense ratio were ranked in the
second and third quintiles, respectively, (where the lowest fees and expenses would be in the first quintile) against the Fund’s expense universe as determined by the independent third-party data provider for
purposes of expense comparison. The Committee and the Board also took into account the fee waiver and expense limitation arrangements agreed to by the Investment Manager, as noted above.
The Committee and the Board also
received and considered information about the management fees charged by the Investment Manager to institutional accounts. In considering the fees charged to those accounts, the Committee and the Board took into
account, among other things, the Investment Manager’s representations about the differences between managing mutual funds as compared to other types of accounts, including differences in the services provided,
differences in the risk profile of such business for the Investment Manager and the additional resources required to manage mutual funds effectively. The Committee and the Board also received and considered
information about the fees charged by the Investment Manager for sub-advisory services it provides to comparable unaffiliated funds. In evaluating the Fund’s management fees, the Committee and the Board also
took into account the demands, complexity and quality of the investment management of the Fund.
After reviewing these and related
factors, the Committee and the Board concluded, within the context of their overall conclusions, that the management fee rates and expenses of the Fund, in light of other considerations, supported the continuation of
the Management Agreement.
Costs of services provided and
profitability
The Committee and the Board also
took note of the costs the Investment Manager and its affiliates incur in connection with the services provided and the profitability to the Investment Manager and its affiliates from their relationships with the
Fund, and the efforts undertaken by the Investment Manager and its affiliates to manage efficiently their costs to provide such services.
The Committee and the Board also
considered the compensation directly or indirectly received by the Investment Manager’s affiliates in connection with their relationships with the Fund. The Committee and the Board reviewed information provided
by management as to the profitability to the Investment Manager and its affiliates of their relationships with the Fund, information about the allocation of expenses used to calculate profitability, and comparisons of
profitability levels realized in 2018 to profitability levels realized in 2017. When reviewing profitability, the Committee and the Board also considered court cases in which adviser profitability was an issue in
whole or in part, the performance of similarly managed funds, the performance of the Fund, and the expense ratio of the Fund. In addition, the Committee and the Board considered information provided by the Investment
Manager regarding the Investment Manager’s financial condition and comparing its profitability to that of other asset management firms that are, or are subsidiaries of, publicly traded companies. In this regard,
the Committee and the Board also considered data provided by the independent fee consultant.
After reviewing these and related
factors, the Committee and the Board concluded, within the context of their overall conclusions, that the costs of services provided and the profitability to the Investment Manager and its affiliates from their
relationships with the Fund supported the continuation of the Management Agreement.
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
43
|
Board Consideration and Approval of
Management
Agreement (continued)
Economies of scale
The Committee and the Board
considered the potential existence of economies of scale in the provision by the Investment Manager of services to the Fund, to groups of related funds, and to the Investment Manager’s investment advisory
clients as a whole, and whether those economies of scale were shared with the Fund through breakpoints in investment management fees or other means, such as expense limitation arrangements and additional investments
by the Investment Manager in investment, trading, compliance and other resources. The Committee and the Board noted that the management fee schedules for the Fund contained breakpoints that would reduce the fee rate
on assets above specified threshold levels.
In considering these matters, the
Committee and the Board also considered the costs of the services provided and the profitability to the Investment Manager and its affiliates from their relationships with the Fund, as noted above. After reviewing
these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the extent to which any economies of scale were expected to be shared with the Fund supported the
continuation of the Management Agreement.
Other benefits to the Investment
Manager
The Committee and the Board
received and considered information regarding “fall-out” or ancillary benefits received by the Investment Manager and its affiliates as a result of their relationships with the Fund, such as the engagement
of the Investment Manager’s affiliates to provide distribution, transfer agency and shareholder services to the Fund. In this regard, among other matters, the Committee and the Board considered that the
Fund’s distributor retains a portion of the distribution fees from the Fund and receives a portion of the sales charges on sales or redemptions of certain classes of shares of the Fund. The Committee and the
Board also considered the benefits of research made available to the Investment Manager by reason of brokerage commissions generated by the Fund’s securities transactions, and reviewed information about the
Investment Manager’s practices with respect to considering brokerage and research services when allocating portfolio transactions. In this connection, the Board also noted that the amount of research made
available to the Investment Manager by reason of brokerage commissions had been declining over time, and may decline further. The Committee and the Board recognized that the Investment Manager’s profitability
would be somewhat lower without these benefits.
Conclusion
The Committee and the Board
reviewed all of the above considerations in reaching their decisions to recommend or approve the continuation of the Management Agreement. In their deliberations, the Trustees did not identify any particular
information that was all-important or controlling, and individual Trustees may have attributed different weights to the various factors. Based on their evaluation of all factors that they deemed to be material,
including those factors described above, and assisted by the advice of independent legal counsel, the Board, including the Independent Trustees, voting separately, unanimously approved the continuation of the
Management Agreement.
44
|
Columbia Strategic California Municipal Income Fund | Annual Report 2019
|
[THIS PAGE INTENTIONALLY LEFT
BLANK]
[THIS PAGE INTENTIONALLY LEFT BLANK]
[THIS PAGE INTENTIONALLY LEFT BLANK]
Columbia Strategic California Municipal Income
Fund
P.O. Box 219104
Kansas City, MO 64121-9104
Please read and consider the
investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus and summary prospectus, which contains this and other important information about the Fund, go to
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments
(Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2019 Columbia Management Investment
Advisers, LLC.
columbiathreadneedleus.com/investor/
Annual Report
October 31, 2019
Columbia
Intermediate Municipal Bond Fund
Beginning on January 1, 2021, as
permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports like this one will no longer be sent by mail, unless you
specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (columbiathreadneedleus.com/investor/), and each time a report is posted you will be notified
by mail and provided with a website address to access the report.
If you have already elected to
receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically
at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, for Fund shares held directly with the Fund, by calling 800.345.6611 or by enrolling in “eDelivery” by logging
into your account at columbiathreadneedleus.com/investor/.
You may elect to receive all future
reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue receiving paper copies of your shareholder reports. If you
invest directly with the Fund, you can call 800.345.6611 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive paper reports will apply to all Columbia
Funds held in your account if you invest through a financial intermediary or all Columbia Funds held with the fund complex if you invest directly with the Fund.
Not FDIC Insured • No bank
guarantee • May lose value
|
3
|
|
5
|
|
7
|
|
8
|
|
22
|
|
24
|
|
25
|
|
28
|
|
32
|
|
40
|
|
41
|
|
41
|
|
45
|
Columbia Intermediate Municipal
Bond Fund (the Fund) mails one shareholder report to each shareholder address, unless such shareholder elected to receive shareholder reports from the Fund electronically. If you would like more than one report,
please call shareholder services at 800.345.6611 and additional reports will be sent to you.
Proxy voting policies and
procedures
The policy of the Board of Trustees
is to vote the proxies of the companies in which the Fund holds investments consistent with the procedures as stated in the Statement of Additional Information (SAI). You may obtain a copy of the SAI without charge by
calling 800.345.6611; contacting your financial intermediary; visiting columbiathreadneedleus.com/investor/; or searching the website of the Securities and Exchange Commission (SEC) at sec.gov. Information regarding
how the Fund voted proxies relating to portfolio securities is filed with the SEC by August 31st for the most recent 12-month period ending June 30th of that year, and is available without charge by visiting
columbiathreadneedleus.com/investor/, or searching the website of the SEC at sec.gov.
Quarterly schedule of
investments
The Fund files a complete schedule
of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT, and for reporting periods ended prior to March 31, 2019, on Form N-Q. The Fund’s Form N-Q and 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-Q or Form N-PORT, can also be obtained without charge, upon request, by calling
800.345.6611.
Additional Fund information
For more information about the
Fund, please visit columbiathreadneedleus.com/investor/ or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 7 p.m. Eastern time.
Fund investment manager
Columbia Management Investment Advisers, LLC (the
Investment Manager)
225 Franklin Street
Boston, MA 02110
Fund distributor
Columbia Management Investment Distributors,
Inc.
225 Franklin Street
Boston, MA 02110
Fund transfer agent
Columbia Management Investment Services Corp.
P.O. Box 219104
Kansas City, MO 64121-9104
Columbia Intermediate Municipal Bond
Fund | Annual Report 2019
Investment objective
The Fund
seeks current income exempt from federal income tax, consistent with preservation of principal.
Portfolio management
Paul Fuchs, CFA
Lead Portfolio Manager
Managed Fund since 2012
Anders Myhran, CFA
Portfolio Manager
Managed Fund since May 2019
Deborah Vargo
Portfolio Manager
Managed Fund since 2017
Average annual total returns (%) (for the period ended October 31, 2019)
|
|
|
Inception
|
1 Year
|
5 Years
|
10 Years
|
Class A
|
Excluding sales charges
|
11/25/02
|
7.94
|
2.64
|
3.60
|
|
Including sales charges
|
|
4.73
|
2.03
|
3.28
|
Advisor Class*
|
03/19/13
|
8.15
|
2.85
|
3.80
|
Class C
|
Excluding sales charges
|
11/25/02
|
7.14
|
1.96
|
3.13
|
|
Including sales charges
|
|
6.14
|
1.96
|
3.13
|
Institutional Class
|
06/14/93
|
8.15
|
2.85
|
3.81
|
Institutional 2 Class*
|
11/08/12
|
8.24
|
2.93
|
3.87
|
Institutional 3 Class*
|
03/01/17
|
8.27
|
2.91
|
3.84
|
Class V
|
Excluding sales charges
|
06/26/00
|
7.99
|
2.69
|
3.65
|
|
Including sales charges
|
|
2.91
|
1.70
|
3.15
|
Bloomberg Barclays 3-15 Year Blend Municipal Bond Index
|
|
8.64
|
3.17
|
4.00
|
Returns for Class A shares are shown
with and without the maximum initial sales charge of 3.00%. Returns for Class C shares are shown with and without the 1.00% contingent deferred sales charge for the first year only. Returns for Class V shares are
shown with and without the maximum initial sales charge of 4.75%. The Fund’s other share classes are not subject to sales charges and have limited eligibility. Please see the Fund’s prospectus for details.
Performance for different share classes will vary based on differences in sales charges and fees associated with each share class. All results shown assume reinvestment of distributions during the period. Returns do
not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results reflect the effect of any fee waivers or reimbursements of Fund expenses by
Columbia Management Investment Advisers, LLC and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower.
The performance information shown
represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than
their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by contacting your financial
intermediary, visiting columbiathreadneedleus.com/investor/ or calling 800.345.6611.
*
|
The returns shown for periods prior to the share class inception date (including returns for the Life of the Fund, if shown, which are since Fund inception) include the returns of the Fund’s oldest share
class. These returns are adjusted to reflect any higher class-related operating expenses of the newer share classes, as applicable. Please visit
columbiathreadneedleus.com/investor/investment-products/mutual-funds/appended-performance for more information.
|
The Bloomberg Barclays 3–15
Year Blend Municipal Bond Index is an unmanaged index that tracks the performance of municipal bonds issued after December 31, 1990, with remaining maturities between 2 and 17 years and at least $7 million in
principal amount outstanding.
Indices are not available for
investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes or other expenses of investing. Securities in the Fund may not match those in an index.
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
3
|
Fund at a Glance (continued)
Performance of a hypothetical $10,000 investment (October 31, 2009 — October 31, 2019)
The chart above shows the change in
value of a hypothetical $10,000 investment in Class A shares of Columbia Intermediate Municipal Bond Fund during the stated time period, and does not reflect the deduction of taxes that a shareholder may pay on Fund
distributions or on the redemption of Fund shares.
Quality breakdown (%) (at October 31, 2019)
|
AAA rating
|
2.3
|
AA rating
|
25.2
|
A rating
|
49.6
|
BBB rating
|
17.1
|
BB rating
|
1.0
|
CCC rating
|
0.9
|
Not rated
|
3.9
|
Total
|
100.0
|
Percentages indicated are based
upon total fixed income investments.
Bond ratings apply to the underlying
holdings of the Fund and not the Fund itself and are divided into categories ranging from highest to lowest credit quality, determined by using the middle rating of Moody’s, S&P and Fitch, after dropping the
highest and lowest available ratings. When ratings are available from only two rating agencies, the lower rating is used. When a rating is available from only one rating agency, that rating is used. When a bond is not
rated by any rating agency, it is designated as “Not rated.” Credit quality ratings assigned by a rating agency are subjective opinions, not statements of fact, and are subject to change, including daily.
The ratings assigned by credit rating agencies are but one of the considerations that the Investment Manager and/or Fund’s subadviser incorporates into its credit analysis process, along with such other
issuer-specific factors as cash flows, capital structure and leverage ratios, ability to de-leverage (repay) through free cash flow, quality of management, market positioning and access to capital, as well as such
security-specific factors as the terms of the security (e.g., interest rate and time to maturity) and the amount and type of any collateral.
Top Ten States/Territories (%)
(at October 31, 2019)
|
California
|
17.3
|
Texas
|
13.5
|
Illinois
|
11.5
|
Florida
|
6.8
|
New York
|
5.1
|
Pennsylvania
|
4.5
|
Massachusetts
|
3.9
|
South Carolina
|
3.5
|
District of Columbia
|
3.1
|
New Jersey
|
2.7
|
Percentages indicated are based
upon total investments excluding Money Market Funds and investments in derivatives, if any.
For further detail about these
holdings, please refer to the section entitled “Portfolio of Investments.”
Fund holdings are as of the date
given, are subject to change at any time, and are not recommendations to buy or sell any security.
4
|
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
Manager Discussion of Fund Performance
During the 12-month period that
ended October 31, 2019, the Fund’s Class A shares returned 7.94% excluding sales charges. Institutional Class shares of the Fund returned 8.15%. The Fund’s benchmark, the Bloomberg Barclays 3-15 Year Blend
Municipal Bond Index, returned 8.64%. The Fund’s duration (interest-rate sensitivity) had drifted lower throughout 2018, which prevented it from fully participating in the market’s gain in the final two
months of the period.
Market overview
Municipal bonds generated a
robust return over the 12 months that ended October 31, 2019. After experiencing poor performance throughout most of 2018, municipals began to rebound in early November 2018 thanks to the combination of slowing global
growth, volatility in higher risk assets, and expectations that the U.S. Federal Reserve (Fed) would adopt a more accommodative stance. In addition, various geopolitical factors, including the U.S.-China trade
dispute, Brexit negotiations, and the U.S. government shutdown, fueled a “flight to quality” into bonds.
The rally persisted into the New
Year, leading to the largest first-quarter gain for the tax-exempt market since 2014. The quarter was also the sixth-best for municipals in the past 30 years, thanks in part to the backdrop of slow global growth and
the increasingly accommodative policies of the world’s major central banks. Supply-and-demand factors were highly favorable, as well. Municipal bond mutual funds experienced record inflows, fueled by strong
demand resulting from the cap on state and local tax deductions in the Tax Cuts and Jobs Act of 2017. As of year-to-date September 30, 2019, municipal bond funds had taken in over $70 billion. At the same time,
new-issue supply was limited. Trends in the U.S. Treasury market were also supportive, as yields fell in anticipation of Fed rate cuts. Together, these developments resulted in positive municipal market performance
during the spring and summer.
In early September 2019, however,
the typical seasonal increase in supply — which was exacerbated by historically low costs for issuers — caused the rally to stall. Municipals suffered their first month of negative returns in 2019 as a
result. The market continued to trade in an uneven fashion through the end of October 2019, as the Fed indicated that additional rate cuts would be dependent on incoming economic data.
For the full year, lower quality
issues outpaced their higher-rated counterparts as investors displayed a consistent willingness to move out the risk spectrum in search of higher yields. Long-term bonds strongly outperformed short-dated issues,
reflecting the trend in the U.S. Treasury market.
Contributors and detractors
The Fund lagged its benchmark
during the period, with the bulk of the underperformance occurring in the rally of November to December 2018. The Fund’s duration (interest-rate sensitivity) had drifted lower throughout 2018, which prevented it
from fully participating in the market’s gain in the final two months of the period. The Fund was also hurt by an overweight in bonds maturing in two years or less, including pre-refunded issues.
Conversely, an overweight in bonds
with maturities of 12 years and above aided relative performance. Positions in zero-coupon bonds, which have above-average interest rate sensitivity, were an additional positive at a time in which yields fell sharply.
(Prices and yields move in opposite directions.) An overweight in the A and BBB rated categories (the lower rated segment of the investment-grade space) also added value. At the sector level, holdings in hospital and
toll facility issues contributed to results.
Fund positioning
Over the course of the period, we
lengthened the Fund’s average maturity by approximately 0.5 years in an effort to increase the portfolio’s sensitivity to market movements. The shift in the Fed’s policy stance was the primary
catalyst for this decision. As part of this process, we reduced the portfolio’s holdings in bonds with maturities of two years and below. We had been holding an above-average weighting in this segment in
response to the Fed’s tightening cycle, but we saw less of a benefit in maintaining the position following the central bank’s pivot to a more accommodative posture. We also reduced the portfolio’s
exposure to shorter maturity, pre-refunded securities. We had been reluctant to move out of this area, as it supported the Fund’s distribution yield due to the fact that we purchased many of these bonds when
rates were higher. However, its total
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
5
|
Manager Discussion of Fund Performance (continued)
return potential appeared limited due to the low
degree of possible price appreciation. Similarly, we decreased the portfolio’s weighting in bonds that are callable in 12 months or less and that we believe will be refunded. We reinvested the proceeds of these
sales into areas that we believe offer more income and total return potential.
The Fund’s universe of
allowable investments expanded to include bonds subject to the Alternative Minimum Tax (AMT). We made this shift after tax reform drastically reduced the number of taxpayers subject to the AMT. This change gives us a
wider opportunity to invest in bonds with higher income. We sought to capitalize on the broader mandate by adding positions in the AMT bonds of various air and sea ports across the United States.
We continued to emphasize lower
rated investment-grade issues based on our view that there is a low probability of a recession in the coming year, but we remained selective in our new purchases. The holdings we added had an average rating of A and
an average maturity of 16 years, and our sales had an average maturity of six years.
The major stock indexes stood near
all-time highs at the close of the period, but fixed-income investors were displaying some caution with the yield on the 10-year note having risen from its September low. The Fed appeared to have concluded its
mini-easing cycle and was indicating it was unlikely to enact further cuts until it sees a meaningful uptick in inflation. In addition, market participants were struggling to assess the outlook for global growth and
tensions in Washington, as well as Brexit and the U.S.-China trade conflict. For our part, we remain on the lookout for the chance to use any volatility associated with these issues as a potential buying
opportunity.
Fixed-income securities present
issuer default risk. The Fund invests substantially in municipal securities and will be affected by tax, legislative, regulatory, demographic or political changes, as well as changes impacting a state’s financial, economic or other
conditions. A relatively small number of tax-exempt issuers may necessitate the Fund investing more heavily in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly.
Prepayment and extension risk exists because the timing of payments on a loan, bond or other investment may accelerate when interest rates fall or decelerate when interest rates rise
which may reduce investment opportunities and potential returns. A rise in interest rates may result in a price decline of fixed-income instruments held by the Fund, negatively impacting its performance and NAV. Falling rates may result in the Fund investing
in lower yielding debt instruments, lowering the Fund’s income and yield. These risks may be heightened for longer maturity and duration securities. Non-investment-grade (high-yield or junk) securities present greater price volatility and more risk to principal and income than higher rated securities. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. Federal and state tax rules apply to capital gain distributions and any gains or losses on sales. Income may be subject to state, local or alternative minimum taxes. See the Fund’s prospectus for
more information on these and other risks.
The views expressed in this report
reflect the current views of the respective parties. These views are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict, so actual outcomes and
results may differ significantly from the views expressed. These views are subject to change at any time based upon economic, market or other conditions and the respective parties disclaim any responsibility to update
such views. These views may not be relied on as investment advice and, because investment decisions for a Columbia fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf
of any particular Columbia fund. References to specific securities should not be construed as a recommendation or investment advice.
6
|
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
Understanding Your Fund’s
Expenses
(Unaudited)
As an investor, you incur two types
of costs. There are shareholder transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing fund costs, which generally include management fees,
distribution and/or service fees, and other fund expenses. The following information is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to help you compare these costs with
the ongoing costs of investing in other mutual funds.
Analyzing your Fund’s
expenses
To illustrate these ongoing
costs, we have provided examples and calculated the expenses paid by investors in each share class of the Fund during the period. The actual and hypothetical information in the table is based on an initial investment
of $1,000 at the beginning of the period indicated and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the
“Actual” column is calculated using the Fund’s actual operating expenses and total return for the period. You may use the Actual information, together with the amount invested, to estimate the
expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the results by the expenses paid during the period under
the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the
Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or
the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are
required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are
meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in
comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
May 1, 2019 — October 31, 2019
|
|
Account value at the
beginning of the
period ($)
|
Account value at the
end of the
period ($)
|
Expenses paid during
the period ($)
|
Fund’s annualized
expense ratio (%)
|
|
Actual
|
Hypothetical
|
Actual
|
Hypothetical
|
Actual
|
Hypothetical
|
Actual
|
Class A
|
1,000.00
|
1,000.00
|
1,032.00
|
1,021.42
|
3.84
|
3.82
|
0.75
|
Advisor Class
|
1,000.00
|
1,000.00
|
1,034.00
|
1,022.43
|
2.82
|
2.80
|
0.55
|
Class C
|
1,000.00
|
1,000.00
|
1,028.60
|
1,018.15
|
7.16
|
7.12
|
1.40
|
Institutional Class
|
1,000.00
|
1,000.00
|
1,033.00
|
1,022.43
|
2.82
|
2.80
|
0.55
|
Institutional 2 Class
|
1,000.00
|
1,000.00
|
1,033.40
|
1,022.74
|
2.51
|
2.50
|
0.49
|
Institutional 3 Class
|
1,000.00
|
1,000.00
|
1,033.60
|
1,022.99
|
2.26
|
2.24
|
0.44
|
Class V
|
1,000.00
|
1,000.00
|
1,032.20
|
1,021.68
|
3.59
|
3.57
|
0.70
|
Expenses paid during the period
are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period and then multiplied by the number of days in the Fund’s most recent fiscal
half year and divided by 365.
Expenses do not include fees and
expenses incurred indirectly by the Fund from its investment in underlying funds, including affiliated and non-affiliated pooled investment vehicles, such as mutual funds and exchange-traded funds.
Had Columbia Management Investment
Advisers, LLC and/or certain of its affiliates not waived/reimbursed certain fees and expenses, account value at the end of the period would have been reduced.
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
7
|
Portfolio of Investments
October 31, 2019
(Percentages represent value of
investments compared to net assets)
Investments in securities
Floating Rate Notes 0.2%
|
Issue Description
|
Effective
Yield
|
|
Principal
Amount ($)
|
Value ($)
|
New York 0.2%
|
Triborough Bridge & Tunnel Authority(a),(b)
|
Refunding Revenue Bonds
|
General
|
Subordinated Series 2018-B-3 (State Street Bank and Trust Co.)
|
01/01/2032
|
1.290%
|
|
2,300,000
|
2,300,000
|
Total Floating Rate Notes
(Cost $2,300,000)
|
2,300,000
|
|
Municipal Bonds 99.1%
|
Issue Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value ($)
|
Arizona 1.2%
|
Arizona Industrial Development Authority
|
Revenue Bonds
|
Great Lakes Senior Living Community
|
Series 2019
|
01/01/2037
|
5.000%
|
|
1,000,000
|
1,166,460
|
01/01/2038
|
5.000%
|
|
675,000
|
781,211
|
Arizona State University
|
Revenue Bonds
|
Green Bond
|
Series 2019A
|
07/01/2037
|
5.000%
|
|
7,800,000
|
9,894,066
|
La Paz County Industrial Development Authority
|
Revenue Bonds
|
Charter School Solutions - Harmony Public
|
Series 2016
|
02/15/2036
|
5.000%
|
|
2,800,000
|
3,135,804
|
Total
|
14,977,541
|
California 17.2%
|
California Educational Facilities Authority
|
Revenue Bonds
|
Chapman University
|
Series 2015
|
04/01/2028
|
5.000%
|
|
1,000,000
|
1,186,960
|
04/01/2029
|
5.000%
|
|
1,650,000
|
1,950,944
|
04/01/2030
|
5.000%
|
|
1,700,000
|
2,019,787
|
California Health Facilities Financing Authority
|
Refunding Revenue Bonds
|
El Camino Hospital
|
Series 2015A
|
02/01/2029
|
5.000%
|
|
1,485,000
|
1,768,130
|
Revenue Bonds
|
El Camino Hospital
|
Series 2017
|
02/01/2034
|
5.000%
|
|
1,750,000
|
2,138,920
|
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Sutter Health Obligation Group
|
Series 2016A
|
11/15/2033
|
5.000%
|
|
5,000,000
|
5,991,000
|
California Municipal Finance Authority
|
Revenue Bonds
|
National University
|
Series 2019A
|
04/01/2037
|
5.000%
|
|
1,470,000
|
1,813,142
|
California School Finance Authority(c)
|
Refunding Revenue Bonds
|
Aspire Public Schools
|
Series 2016
|
08/01/2036
|
5.000%
|
|
2,085,000
|
2,345,083
|
California State Public Works Board
|
Refunding Revenue Bonds
|
Various Capital Projects
|
Series 2012G
|
11/01/2028
|
5.000%
|
|
5,510,000
|
6,114,447
|
Revenue Bonds
|
Various Capital Projects
|
Series 2011A
|
10/01/2022
|
5.250%
|
|
3,395,000
|
3,666,532
|
Series 2012A
|
04/01/2028
|
5.000%
|
|
10,000,000
|
10,887,500
|
Series 2013I
|
11/01/2028
|
5.250%
|
|
9,225,000
|
10,638,639
|
11/01/2029
|
5.000%
|
|
5,000,000
|
5,705,150
|
11/01/2031
|
5.500%
|
|
2,930,000
|
3,394,991
|
Various Correctional Facilities
|
Series 2014A
|
09/01/2031
|
5.000%
|
|
15,350,000
|
17,847,598
|
California Statewide Communities Development Authority
|
Revenue Bonds
|
Henry Mayo Newhall Memorial
|
Series 2014A (AGM)
|
10/01/2034
|
5.000%
|
|
5,000,000
|
5,674,200
|
Methodist Hospital of Southern California
|
01/01/2038
|
5.000%
|
|
3,000,000
|
3,564,540
|
Series 2017
|
05/15/2033
|
5.000%
|
|
1,350,000
|
1,625,508
|
05/15/2034
|
5.000%
|
|
1,000,000
|
1,200,870
|
05/15/2035
|
5.000%
|
|
2,200,000
|
2,635,710
|
City of Tulare Sewer
|
Refunding Revenue Bonds
|
Series 2015 (AGM)
|
11/15/2030
|
5.000%
|
|
1,910,000
|
2,290,682
|
11/15/2031
|
5.000%
|
|
1,000,000
|
1,196,120
|
11/15/2032
|
5.000%
|
|
1,610,000
|
1,918,814
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
8
|
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
City of Upland
|
Refunding Certificate of Participation
|
San Antonio Regional Hospital
|
Series 2017
|
01/01/2035
|
4.000%
|
|
1,000,000
|
1,080,590
|
Del Mar Race Track Authority
|
Refunding Revenue Bonds
|
Series 2015
|
10/01/2035
|
5.000%
|
|
2,665,000
|
2,977,151
|
Foothill-Eastern Transportation Corridor Agency
|
Subordinated Refunding Revenue Bonds
|
Series 2014B-3 (Mandatory Put 01/15/23)
|
01/15/2053
|
5.500%
|
|
9,000,000
|
9,982,080
|
Golden State Tobacco Securitization Corp.
|
Asset-Backed Refunding Revenue Bonds
|
Series 2015A
|
06/01/2033
|
5.000%
|
|
5,250,000
|
6,185,603
|
Refunding Revenue Bonds
|
Series 2017A-1
|
06/01/2024
|
5.000%
|
|
5,000,000
|
5,714,300
|
Hartnell Community College District(d)
|
Unlimited General Obligation Refunding Bonds
|
Capital Appreciation Serial Bonds
|
Series 2015A
|
08/01/2035
|
0.000%
|
|
2,650,000
|
1,508,619
|
La Quinta Redevelopment Agency Successor Agency
|
Refunding Tax Allocation Bonds
|
Redevelopment Project
|
Subordinated Series 2013A
|
09/01/2029
|
5.000%
|
|
5,000,000
|
5,656,900
|
Los Angeles County Sanitation Districts Financing Authority
|
Subordinated Refunding Revenue Bonds
|
Capital Projects - District #14
|
Series 2015
|
10/01/2033
|
5.000%
|
|
4,000,000
|
4,741,120
|
Manteca Unified School District(d)
|
Unlimited General Obligation Bonds
|
Capital Appreciation-Election of 2004
|
Series 2006 (NPFGC)
|
08/01/2024
|
0.000%
|
|
5,000,000
|
4,662,450
|
Monrovia Unified School District
|
Unlimited General Obligation Refunding Bonds
|
Series 2005 (NPFGC)
|
08/01/2021
|
5.250%
|
|
5,600,000
|
5,903,072
|
Pico Rivera Water Authority
|
Revenue Bonds
|
Water System Project
|
Series 1999A (NPFGC)
|
05/01/2029
|
5.500%
|
|
3,000,000
|
3,573,720
|
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Rancho Santiago Community College District(d)
|
Unlimited General Obligation Bonds
|
Capital Appreciation-Election of 2002
|
Series 2006C (AGM)
|
09/01/2031
|
0.000%
|
|
28,000,000
|
21,259,000
|
San Francisco City & County Airport Commission - San Francisco International Airport(e)
|
Revenue Bonds
|
Series 2019E AMT
|
05/01/2037
|
5.000%
|
|
450,000
|
552,672
|
San Joaquin Hills Transportation Corridor Agency(d)
|
Revenue Bonds
|
Senior Lien
|
Series 1993 Escrowed to Maturity
|
01/01/2025
|
0.000%
|
|
22,405,000
|
20,999,310
|
San Jose Financing Authority
|
Refunding Revenue Bonds
|
Civic Center Project
|
Series 2013A
|
06/01/2029
|
5.000%
|
|
5,000,000
|
5,688,950
|
Southern California Public Power Authority
|
Revenue Bonds
|
Project No. 1
|
Series 2007A
|
11/01/2022
|
5.250%
|
|
2,500,000
|
2,765,325
|
State of California
|
Unlimited General Obligation Bonds
|
Series 2015
|
03/01/2033
|
5.000%
|
|
2,500,000
|
2,960,775
|
Tustin Community Facilities District
|
Refunding Special Tax Bonds
|
Legacy Villages of Columbus #06-1
|
Series 2015
|
09/01/2031
|
5.000%
|
|
1,000,000
|
1,173,600
|
09/01/2033
|
5.000%
|
|
1,250,000
|
1,466,538
|
West Contra Costa Unified School District(d)
|
Unlimited General Obligation Bonds
|
Series 2005 (NPFGC)
|
08/01/2020
|
0.000%
|
|
7,285,000
|
7,213,170
|
Total
|
213,640,212
|
Colorado 2.6%
|
City & County of Denver Airport System
|
Revenue Bonds
|
Series 2012B
|
11/15/2032
|
5.000%
|
|
10,000,000
|
11,032,100
|
Colorado Health Facilities Authority
|
Prerefunded 06/01/27 Revenue Bonds
|
Evangelical Lutheran Good Samaritan Society
|
Series 2017
|
06/01/2030
|
5.000%
|
|
2,000,000
|
2,491,340
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
9
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Refunding Revenue Bonds
|
Covenant Retirement Communities
|
Series 2012A
|
12/01/2027
|
5.000%
|
|
4,000,000
|
4,365,160
|
Series 2015
|
12/01/2026
|
5.000%
|
|
1,860,000
|
2,149,676
|
12/01/2028
|
5.000%
|
|
1,000,000
|
1,148,390
|
12/01/2030
|
5.000%
|
|
1,400,000
|
1,596,406
|
Park Creek Metropolitan District
|
Refunding Tax Allocation Bonds
|
Limited Property Tax
|
Series 2015
|
12/01/2032
|
5.000%
|
|
1,500,000
|
1,745,280
|
Regional Transportation District
|
Certificate of Participation
|
Series 2015
|
06/01/2027
|
5.000%
|
|
2,925,000
|
3,462,001
|
University of Colorado Hospital Authority
|
Revenue Bonds
|
Series 2012A
|
11/15/2027
|
5.000%
|
|
3,750,000
|
4,151,175
|
Total
|
32,141,528
|
Connecticut 0.4%
|
Connecticut State Development Authority
|
Refunding Revenue Bonds
|
Connecticut Light & Power Co. Project
|
Series 2011
|
09/01/2028
|
4.375%
|
|
1,615,000
|
1,693,893
|
Connecticut State Health & Educational Facility Authority
|
Revenue Bonds
|
Trinity College
|
Series 1998F (NPFGC)
|
07/01/2021
|
5.500%
|
|
370,000
|
388,459
|
State of Connecticut
|
Unlimited General Obligation Bonds
|
Series 2019A
|
04/15/2036
|
5.000%
|
|
2,200,000
|
2,717,990
|
Total
|
4,800,342
|
District of Columbia 3.0%
|
District of Columbia
|
Refunding Revenue Bonds
|
Children’s Hospital
|
Series 2015
|
07/15/2030
|
5.000%
|
|
3,000,000
|
3,549,090
|
Friendship Public Charter School
|
Series 2016
|
06/01/2036
|
5.000%
|
|
3,700,000
|
4,231,653
|
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Metropolitan Washington Airports Authority Dulles Toll Road(d)
|
Revenue Bonds
|
Capital Appreciation-2nd Senior Lien
|
Series 2009B (AGM)
|
10/01/2024
|
0.000%
|
|
20,980,000
|
19,005,153
|
10/01/2025
|
0.000%
|
|
7,500,000
|
6,624,375
|
10/01/2026
|
0.000%
|
|
5,000,000
|
4,292,650
|
Total
|
37,702,921
|
Florida 6.8%
|
County of Miami-Dade Aviation
|
Prerefunded 10/01/20 Revenue Bonds
|
Miami International
|
Series 2010
|
10/01/2025
|
5.500%
|
|
4,550,000
|
4,729,998
|
Refunding Revenue Bonds
|
Series 2014B
|
10/01/2032
|
5.000%
|
|
6,620,000
|
7,649,807
|
County of Miami-Dade Rickenbacker Causeway
|
Revenue Bonds
|
Series 2014
|
10/01/2033
|
5.000%
|
|
1,215,000
|
1,373,570
|
County of Miami-Dade Water & Sewer System
|
Refunding Revenue Bonds
|
System
|
Series 2008B (AGM)
|
10/01/2021
|
5.250%
|
|
20,000,000
|
21,559,000
|
Florida Municipal Power Agency
|
Refunding Revenue Bonds
|
Series 2016A
|
10/01/2030
|
5.000%
|
|
2,750,000
|
3,334,210
|
Hillsborough County Aviation Authority
|
Revenue Bonds
|
Tampa International Airport
|
Subordinated Series 2015B
|
10/01/2031
|
5.000%
|
|
1,600,000
|
1,855,440
|
10/01/2032
|
5.000%
|
|
2,300,000
|
2,662,480
|
Mid-Bay Bridge Authority
|
Refunding Revenue Bonds
|
Series 2015A
|
10/01/2030
|
5.000%
|
|
2,150,000
|
2,473,489
|
Orange County School Board
|
Prerefunded 08/01/22 Certificate of Participation
|
Series 2012B
|
08/01/2026
|
5.000%
|
|
6,500,000
|
7,178,925
|
Refunding Certificate of Participation
|
Series 2016C
|
08/01/2033
|
5.000%
|
|
5,000,000
|
6,002,050
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
10
|
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Palm Beach County Health Facilities Authority
|
Revenue Bonds
|
Lifespace Communities, Inc.
|
Series 2018
|
05/15/2036
|
5.000%
|
|
1,550,000
|
1,763,621
|
05/15/2037
|
5.000%
|
|
1,500,000
|
1,701,780
|
Pasco County School Board
|
Refunding Certificate of Participation
|
Series 2015A
|
08/01/2026
|
5.000%
|
|
4,620,000
|
5,490,131
|
08/01/2027
|
5.000%
|
|
2,500,000
|
2,963,300
|
School Board of Miami-Dade County (The)
|
Refunding Certificate of Participation
|
Series 2015A
|
05/01/2030
|
5.000%
|
|
2,500,000
|
2,910,325
|
School District of Broward County
|
Prerefunded 07/01/22 Certificate of Participation
|
Series 2012A
|
07/01/2025
|
5.000%
|
|
3,830,000
|
4,207,485
|
Unrefunded Certificate of Participation
|
Series 2012A
|
07/01/2025
|
5.000%
|
|
1,450,000
|
1,593,158
|
Southeast Overtown Park West Community Redevelopment Agency(c)
|
Tax Allocation Bonds
|
Series 2014A-1
|
03/01/2030
|
5.000%
|
|
2,925,000
|
3,275,005
|
Sterling Hill Community Development District(f)
|
Special Assessment Bonds
|
Series 2003B
|
11/01/2010
|
5.500%
|
|
137,786
|
88,184
|
Volusia County Educational Facility Authority
|
Revenue Bonds
|
Series 2015B
|
10/15/2030
|
5.000%
|
|
1,510,000
|
1,741,211
|
Total
|
84,553,169
|
Georgia 1.3%
|
City of Atlanta Department of Aviation
|
Subordinated Refunding Revenue Bonds
|
General Lien
|
Series 2014
|
01/01/2032
|
5.000%
|
|
2,000,000
|
2,271,340
|
DeKalb County Hospital Authority
|
Prerefunded 09/01/20 Revenue Bonds
|
DeKalb Medical Center, Inc. Project
|
Series 2010
|
09/01/2030
|
6.000%
|
|
5,000,000
|
5,194,200
|
Fulton County Development Authority
|
Refunding Revenue Bonds
|
Spelman College
|
Series 2015
|
06/01/2032
|
5.000%
|
|
3,630,000
|
4,240,203
|
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Gainesville & Hall County Development Authority
|
Refunding Revenue Bonds
|
Riverside Military Academy
|
Series 2017
|
03/01/2037
|
5.000%
|
|
2,000,000
|
2,226,380
|
Georgia State Road & Tollway Authority(c),(d)
|
Revenue Bonds
|
I-75 S Express Lanes Project
|
Series 2014
|
06/01/2024
|
0.000%
|
|
625,000
|
504,425
|
06/01/2034
|
0.000%
|
|
3,750,000
|
1,624,537
|
Total
|
16,061,085
|
Idaho 0.2%
|
Idaho Health Facilities Authority
|
Revenue Bonds
|
Terraces of Boise Project
|
Series 2014A
|
10/01/2024
|
7.000%
|
|
2,600,000
|
2,879,656
|
Illinois 11.4%
|
Chicago Midway International Airport
|
Refunding Revenue Bonds
|
2nd Lien
|
Series 2014B
|
01/01/2029
|
5.000%
|
|
6,150,000
|
6,995,010
|
Chicago O’Hare International Airport
|
General Obligation Refunding Bonds
|
Senior Lien
|
Series 2016B
|
01/01/2033
|
5.000%
|
|
2,000,000
|
2,354,940
|
Refunding Revenue Bonds
|
General Senior Lien
|
Series 2013B
|
01/01/2028
|
5.250%
|
|
11,180,000
|
12,495,774
|
Passenger Facility Charge
|
Series 2012A
|
01/01/2028
|
5.000%
|
|
2,590,000
|
2,795,542
|
01/01/2029
|
5.000%
|
|
2,500,000
|
2,696,175
|
01/01/2030
|
5.000%
|
|
3,000,000
|
3,230,730
|
Chicago Transit Authority
|
Revenue Bonds
|
Series 2011
|
12/01/2029
|
5.250%
|
|
4,000,000
|
4,266,040
|
12/01/2030
|
5.250%
|
|
1,925,000
|
2,050,144
|
City of Chicago
|
Unlimited General Obligation Bonds
|
Series 2002B
|
01/01/2027
|
5.125%
|
|
3,155,000
|
3,547,514
|
Series 2015A
|
01/01/2023
|
5.000%
|
|
5,000,000
|
5,376,750
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
11
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Unlimited General Obligation Refunding Bonds
|
Project
|
Series 2014A
|
01/01/2030
|
5.250%
|
|
3,000,000
|
3,306,180
|
01/01/2032
|
5.250%
|
|
3,845,000
|
4,219,042
|
City of Chicago Wastewater Transmission
|
Refunding Revenue Bonds
|
Second Lien
|
Series 2017B
|
01/01/2033
|
5.000%
|
|
7,085,000
|
8,269,754
|
City of Chicago Waterworks
|
Refunding Revenue Bonds
|
2nd Lien
|
Series 2016
|
11/01/2027
|
5.000%
|
|
1,250,000
|
1,485,163
|
Illinois Finance Authority
|
Refunding Revenue Bonds
|
Rush University Medical Center
|
Series 2015A
|
11/15/2032
|
5.000%
|
|
10,000,000
|
11,526,000
|
Illinois Municipal Electric Agency
|
Refunding Revenue Bonds
|
Series 2015A
|
02/01/2030
|
5.000%
|
|
12,060,000
|
14,109,235
|
Illinois State Toll Highway Authority
|
Revenue Bonds
|
Series 2014C
|
01/01/2032
|
5.000%
|
|
9,600,000
|
11,092,896
|
Unrefunded Revenue Bonds
|
Series 2016A
|
12/01/2031
|
4.000%
|
|
5,000,000
|
5,520,700
|
Kane Cook & DuPage Counties School District No. U-46 Elgin
|
Unlimited General Obligation Refunding Bonds
|
Series 2015D
|
01/01/2032
|
5.000%
|
|
1,800,000
|
2,014,632
|
01/01/2033
|
5.000%
|
|
2,000,000
|
2,227,260
|
Railsplitter Tobacco Settlement Authority
|
Revenue Bonds
|
Series 2010
|
06/01/2021
|
5.250%
|
|
12,000,000
|
12,710,880
|
Series 2017
|
06/01/2027
|
5.000%
|
|
2,185,000
|
2,630,281
|
State of Illinois
|
Unlimited General Obligation Bonds
|
Series 2013
|
07/01/2026
|
5.500%
|
|
10,100,000
|
11,133,129
|
Series 2014
|
02/01/2031
|
5.250%
|
|
5,000,000
|
5,471,800
|
Total
|
141,525,571
|
Municipal Bonds (continued)
|
Issue Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value ($)
|
Indiana 1.7%
|
City of Indianapolis Thermal Energy System
|
Refunding Revenue Bonds
|
1st Lien
|
Series 2014A
|
10/01/2032
|
5.000%
|
|
1,400,000
|
1,608,054
|
City of Whiting(e)
|
Refunding Revenue Bonds
|
BP Products North America
|
Series 2019 AMT (Mandatory Put 06/05/26)
|
12/01/2044
|
5.000%
|
|
1,600,000
|
1,889,296
|
Indiana Finance Authority
|
Revenue Bonds
|
1st Lien-CWA Authority, Inc.
|
Series 2011A
|
10/01/2025
|
5.250%
|
|
1,750,000
|
1,880,288
|
2nd Lien-CWA Authority, Inc.
|
Series 2011B
|
10/01/2023
|
5.250%
|
|
7,035,000
|
7,562,906
|
Indiana Municipal Power Agency(g)
|
Revenue Bonds
|
Series 2019A
|
01/01/2037
|
5.000%
|
|
6,990,000
|
8,551,566
|
Total
|
21,492,110
|
Iowa 0.8%
|
PEFA, Inc.
|
Revenue Bonds
|
Series 2019 (Mandatory Put 09/01/26)
|
09/01/2049
|
5.000%
|
|
8,000,000
|
9,406,800
|
Kentucky 0.4%
|
Kentucky Municipal Power Agency
|
Refunding Revenue Bonds
|
Series 2015A
|
09/01/2029
|
5.000%
|
|
4,000,000
|
4,662,720
|
Louisiana 1.1%
|
New Orleans Aviation Board
|
Refunding Revenue Bonds
|
Consolidated Rental Car Project
|
Series 2018 AGM
|
01/01/2035
|
5.000%
|
|
2,000,000
|
2,408,800
|
01/01/2036
|
5.000%
|
|
1,250,000
|
1,502,550
|
Parish of St. Charles
|
Revenue Bonds
|
Valero Energy Corp.
|
Series 2010 (Mandatory Put 06/01/22)
|
12/01/2040
|
4.000%
|
|
9,320,000
|
9,833,159
|
Total
|
13,744,509
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
12
|
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value ($)
|
Maryland 1.9%
|
County of Anne Arundel
|
Limited General Obligation Bonds
|
Consolidated General Improvements
|
Series 2019
|
10/01/2031
|
5.000%
|
|
6,955,000
|
9,064,730
|
County of Howard
|
Refunding Revenue Bonds
|
Columbia Vantage House Corp.
|
Series 2017
|
04/01/2036
|
5.000%
|
|
1,000,000
|
1,093,020
|
Maryland Health & Higher Educational Facilities Authority
|
Refunding Revenue Bonds
|
Meritus Medical Center Issue
|
Series 2015
|
07/01/2028
|
5.000%
|
|
1,300,000
|
1,526,083
|
State of Maryland
|
Unlimited General Obligation Refunding Bonds
|
Series 2017B
|
08/01/2026
|
5.000%
|
|
10,000,000
|
12,374,600
|
Total
|
24,058,433
|
Massachusetts 3.8%
|
Commonwealth of Massachusetts
|
Limited General Obligation Bonds
|
Series 2018A
|
01/01/2035
|
5.000%
|
|
10,000,000
|
12,354,600
|
Massachusetts Bay Transportation Authority(d)
|
Refunding Revenue Bonds
|
Series 2016A
|
07/01/2029
|
0.000%
|
|
3,500,000
|
2,878,680
|
Massachusetts Bay Transportation Authority
|
Unrefunded Revenue Bonds
|
General Transportation
|
Series 1991 (NPFGC)
|
03/01/2021
|
7.000%
|
|
1,520,000
|
1,594,495
|
Massachusetts Development Finance Agency
|
Refunding Revenue Bonds
|
Emerson College
|
Series 2017A
|
01/01/2034
|
5.000%
|
|
1,000,000
|
1,189,990
|
Lahey Clinic Obligation
|
Series 2015F
|
08/15/2031
|
5.000%
|
|
2,490,000
|
2,920,870
|
08/15/2032
|
5.000%
|
|
4,120,000
|
4,819,617
|
08/15/2033
|
5.000%
|
|
3,000,000
|
3,503,610
|
Simmons University
|
Series 2018L
|
10/01/2034
|
5.000%
|
|
2,390,000
|
2,899,644
|
10/01/2035
|
5.000%
|
|
2,000,000
|
2,419,580
|
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Revenue Bonds
|
UMass Boston Student Housing Project
|
Series 2016
|
10/01/2032
|
5.000%
|
|
1,300,000
|
1,508,507
|
UMASS Boston Student Housing Project
|
Series 2016
|
10/01/2036
|
5.000%
|
|
4,600,000
|
5,287,792
|
Massachusetts Development Finance Agency(c)
|
Refunding Revenue Bonds
|
Newbridge Charles, Inc.
|
Series 2017
|
10/01/2032
|
4.000%
|
|
2,000,000
|
2,136,920
|
Revenue Bonds
|
Linden Ponds, Inc. Facility
|
Series 2018
|
11/15/2033
|
5.000%
|
|
975,000
|
1,113,284
|
Massachusetts Health & Educational Facilities Authority
|
Revenue Bonds
|
Boston College
|
Series 2008M-1
|
06/01/2024
|
5.500%
|
|
2,670,000
|
3,184,188
|
Total
|
47,811,777
|
Michigan 1.9%
|
City of Detroit Sewage Disposal System
|
Refunding Revenue Bonds
|
Senior Lien
|
Series 2012A
|
07/01/2026
|
5.250%
|
|
2,000,000
|
2,194,560
|
07/01/2027
|
5.250%
|
|
1,500,000
|
1,643,370
|
Michigan Finance Authority
|
Refunding Revenue Bonds
|
Senior Lien - Great Lakes Water Authority
|
Series 2014C-6
|
07/01/2033
|
5.000%
|
|
800,000
|
908,744
|
Series 2014H-1
|
10/01/2026
|
5.000%
|
|
3,300,000
|
3,817,407
|
Revenue Bonds
|
Local Government Loan Program - Great Lakes Water Authority
|
Series 2015
|
07/01/2033
|
5.000%
|
|
5,000,000
|
5,809,050
|
Senior Lien - Great Lakes Water Authority
|
Series 2014C-3 (AGM)
|
07/01/2032
|
5.000%
|
|
1,000,000
|
1,152,040
|
Royal Oak Hospital Finance Authority
|
Refunding Revenue Bonds
|
William Beaumont Hospital
|
Series 2014D
|
09/01/2032
|
5.000%
|
|
4,075,000
|
4,615,712
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
13
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Wayne County Airport Authority
|
Revenue Bonds
|
Detroit Metro
|
Series 2018
|
12/01/2036
|
5.000%
|
|
3,205,000
|
3,952,310
|
Total
|
24,093,193
|
Minnesota 1.3%
|
City of Maple Grove
|
Refunding Revenue Bonds
|
Maple Grove Hospital Corp.
|
Series 2017
|
05/01/2029
|
5.000%
|
|
2,720,000
|
3,293,458
|
City of St. Cloud
|
Refunding Revenue Bonds
|
Centracare Health
|
Series 2016A
|
05/01/2027
|
5.000%
|
|
1,785,000
|
2,157,208
|
City of Wayzata
|
Refunding Revenue Bonds
|
Folkstone Senior Living Co.
|
Series 2019
|
08/01/2033
|
5.000%
|
|
150,000
|
167,966
|
08/01/2034
|
5.000%
|
|
125,000
|
139,674
|
08/01/2035
|
5.000%
|
|
140,000
|
156,101
|
County of Rice(c)
|
Revenue Bonds
|
Shattuck-St. Mary’s School
|
Series 2015A
|
08/01/2022
|
5.000%
|
|
720,000
|
756,007
|
Housing & Redevelopment Authority of The City of St. Paul
|
Refunding Revenue Bonds
|
Fairview Health Services
|
Series 2017
|
11/15/2029
|
5.000%
|
|
1,050,000
|
1,299,333
|
HealthPartners Obligation Group
|
Series 2015
|
07/01/2028
|
5.000%
|
|
6,400,000
|
7,497,984
|
Woodbury Housing & Redevelopment Authority
|
Revenue Bonds
|
St. Therese of Woodbury
|
Series 2014
|
12/01/2034
|
5.000%
|
|
1,000,000
|
1,062,950
|
Total
|
16,530,681
|
Mississippi 0.3%
|
State of Mississippi
|
Revenue Bonds
|
Series 2015E
|
10/15/2029
|
5.000%
|
|
3,500,000
|
4,149,915
|
Municipal Bonds (continued)
|
Issue Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value ($)
|
Missouri 2.1%
|
Health & Educational Facilities Authority of the State of Missouri
|
Refunding Revenue Bonds
|
CoxHealth
|
Series 2015A
|
11/15/2028
|
5.000%
|
|
6,210,000
|
7,357,484
|
Revenue Bonds
|
Lutheran Senior Services
|
Series 2014
|
02/01/2026
|
5.000%
|
|
1,300,000
|
1,457,092
|
02/01/2029
|
5.000%
|
|
5,975,000
|
6,653,342
|
Kansas City Industrial Development Authority(e)
|
Revenue Bonds
|
Kansas City International Airport
|
Series 2019 (AGM) AMT
|
03/01/2035
|
5.000%
|
|
3,000,000
|
3,650,820
|
Kirkwood Industrial Development Authority
|
Refunding Revenue Bonds
|
Aberdeen Heights Project
|
Series 2017
|
05/15/2037
|
5.250%
|
|
2,695,000
|
3,062,086
|
Missouri Joint Municipal Electric Utility Commission
|
Refunding Revenue Bonds
|
Prairie State Project
|
Series 2015A
|
12/01/2029
|
5.000%
|
|
2,000,000
|
2,350,460
|
Poplar Bluff Regional Transportation Development District
|
Revenue Bonds
|
Series 2012
|
12/01/2026
|
3.250%
|
|
10,000
|
10,379
|
St. Louis County Industrial Development Authority
|
Refunding Revenue Bonds
|
St. Andrew’s Resources for Seniors Obligated Group
|
Series 2015
|
12/01/2025
|
5.000%
|
|
1,310,000
|
1,406,403
|
Total
|
25,948,066
|
Nebraska 1.1%
|
Public Power Generation Agency
|
Refunding Revenue Bonds
|
Whelan Energy Center Unit
|
Series 2015
|
01/01/2027
|
5.000%
|
|
11,865,000
|
13,825,335
|
Nevada 0.5%
|
Carson City
|
Refunding Revenue Bonds
|
Carson Tahoe Regional Medical Center
|
Series 2012
|
09/01/2027
|
5.000%
|
|
3,250,000
|
3,538,502
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
14
|
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
City of Carson City
|
Refunding Revenue Bonds
|
Carson Tahoe Regional Medical Center
|
Series 2017
|
09/01/2031
|
5.000%
|
|
1,000,000
|
1,194,460
|
09/01/2033
|
5.000%
|
|
1,000,000
|
1,186,890
|
State of Nevada Department of Business & Industry(c)
|
Revenue Bonds
|
Somerset Academy
|
Series 2018A
|
12/15/2029
|
4.500%
|
|
750,000
|
811,523
|
Total
|
6,731,375
|
New Jersey 2.7%
|
Essex County Improvement Authority
|
Refunding Revenue Bonds
|
County Guaranteed Project Consolidation
|
Series 2004 (NPFGC)
|
10/01/2026
|
5.500%
|
|
750,000
|
955,755
|
Hudson County Improvement Authority
|
Refunding Revenue Bonds
|
Hudson County Lease Project
|
Series 2010 (AGM)
|
10/01/2024
|
5.375%
|
|
2,000,000
|
2,385,840
|
New Jersey Economic Development Authority(d)
|
Revenue Bonds
|
Capital Appreciation-Motor Vehicle Surcharges
|
Series 2004 (NPFGC)
|
07/01/2021
|
0.000%
|
|
1,255,000
|
1,215,241
|
New Jersey Transportation Trust Fund Authority
|
Refunding Revenue Bonds
|
Transportation System
|
Series 2018-A
|
12/15/2034
|
5.000%
|
|
1,500,000
|
1,749,060
|
Revenue Bonds
|
Transportation Program
|
06/15/2037
|
5.000%
|
|
4,465,000
|
5,169,979
|
Transportation System
|
Series 2006A (AGM)
|
12/15/2021
|
5.500%
|
|
4,700,000
|
5,105,093
|
12/15/2022
|
5.250%
|
|
4,000,000
|
4,464,400
|
New Jersey Turnpike Authority
|
Refunding Revenue Bonds
|
Series 2017E
|
01/01/2029
|
5.000%
|
|
1,500,000
|
1,886,460
|
Series 2017G
|
01/01/2035
|
5.000%
|
|
6,000,000
|
7,356,780
|
Robbinsville Board of Education
|
Unlimited General Obligation Refunding Bonds
|
Series 2005 (AGM)
|
01/01/2028
|
5.250%
|
|
500,000
|
645,155
|
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Tobacco Settlement Financing Corp.
|
Refunding Revenue Bonds
|
Series 2018A
|
06/01/2034
|
5.000%
|
|
2,000,000
|
2,391,780
|
Total
|
33,325,543
|
New Mexico 0.4%
|
County of Bernalillo
|
Refunding Revenue Bonds
|
Series 1998
|
04/01/2027
|
5.250%
|
|
3,000,000
|
3,567,900
|
New Mexico Hospital Equipment Loan Council
|
Revenue Bonds
|
La Vida Expansion Project
|
Series 2019
|
07/01/2032
|
5.000%
|
|
565,000
|
652,411
|
07/01/2033
|
5.000%
|
|
365,000
|
420,634
|
07/01/2034
|
5.000%
|
|
380,000
|
437,110
|
Total
|
5,078,055
|
New York 4.9%
|
Buffalo & Erie County Industrial Land Development Corp.
|
Revenue Bonds
|
Catholic Health System
|
Series 2015
|
07/01/2025
|
5.000%
|
|
1,000,000
|
1,186,460
|
County of Nassau
|
Prerefunded 04/01/24 Limited General Obligation Bonds
|
Series 2014A
|
04/01/2027
|
5.000%
|
|
12,025,000
|
14,065,883
|
Hudson Yards Infrastructure Corp.
|
Refunding Revenue Bonds
|
Series 2017A
|
02/15/2034
|
5.000%
|
|
5,000,000
|
6,093,300
|
Long Island Power Authority
|
Revenue Bonds
|
Series 2012B
|
09/01/2026
|
5.000%
|
|
5,000,000
|
5,515,200
|
New York State Dormitory Authority
|
Refunding Revenue Bonds
|
Memorial Sloan-Kettering Cancer Center
|
Series 2017
|
07/01/2035
|
4.000%
|
|
1,500,000
|
1,719,645
|
North Shore - Long Island Jewish Obligation Group
|
Series 2015A
|
05/01/2031
|
5.000%
|
|
9,830,000
|
11,597,434
|
Revenue Bonds
|
St. John’s University
|
Series 2007C (NPFGC)
|
07/01/2023
|
5.250%
|
|
3,245,000
|
3,696,055
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
15
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
State University Educational Facilities
|
3rd General Series 2005A (NPFGC)
|
05/15/2022
|
5.500%
|
|
6,730,000
|
7,440,150
|
New York State Thruway Authority
|
Prerefunded 01/01/22 Revenue Bonds
|
General
|
Series 2012I
|
01/01/2024
|
5.000%
|
|
8,500,000
|
9,220,290
|
Total
|
60,534,417
|
North Carolina 1.9%
|
North Carolina Capital Facilities Finance Agency
|
Refunding Revenue Bonds
|
The Arc of North Carolina
|
Series 2017
|
10/01/2034
|
5.000%
|
|
2,325,000
|
2,720,668
|
North Carolina Medical Care Commission
|
Refunding Revenue Bonds
|
Presbyterian Homes
|
Series 2016C
|
10/01/2031
|
4.000%
|
|
1,000,000
|
1,103,930
|
United Methodist Retirement
|
Series 2017
|
10/01/2037
|
5.000%
|
|
1,100,000
|
1,227,237
|
North Carolina Municipal Power Agency No. 1
|
Refunding Revenue Bonds
|
Series 2015A
|
01/01/2031
|
5.000%
|
|
2,000,000
|
2,382,100
|
State of North Carolina
|
Refunding Revenue Bonds
|
Series 2014B
|
06/01/2025
|
5.000%
|
|
10,000,000
|
12,005,500
|
University of North Carolina at Greensboro
|
Refunding Revenue Bonds
|
General
|
Series 2017
|
04/01/2035
|
4.000%
|
|
1,200,000
|
1,360,668
|
04/01/2036
|
4.000%
|
|
1,000,000
|
1,129,160
|
University of North Carolina At Wilmington
|
Refunding Revenue Bonds
|
Student Housing Projects
|
Series 2016
|
06/01/2031
|
4.000%
|
|
2,040,000
|
2,297,795
|
Total
|
24,227,058
|
Ohio 1.7%
|
American Municipal Power, Inc.
|
Prerefunded 02/15/22 Revenue Bonds
|
AMP Fremont Energy Center Project
|
Series 2012
|
02/15/2024
|
5.000%
|
|
2,000,000
|
2,169,480
|
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Refunding Revenue Bonds
|
Series 2015A
|
02/15/2032
|
5.250%
|
|
12,000,000
|
13,032,000
|
Ohio Turnpike & Infrastructure Commission
|
Refunding Revenue Bonds
|
Series 1998A (NPFGC)
|
02/15/2021
|
5.500%
|
|
2,000,000
|
2,108,660
|
State of Ohio
|
Refunding Revenue Bonds
|
Cleveland Clinic Health System
|
Series 2011
|
01/01/2025
|
5.000%
|
|
3,750,000
|
3,914,812
|
Total
|
21,224,952
|
Oklahoma 0.2%
|
Norman Regional Hospital Authority
|
Refunding Revenue Bonds
|
Series 2016
|
09/01/2027
|
5.000%
|
|
2,000,000
|
2,412,980
|
Oregon 0.5%
|
Hospital Facilities Authority of Multnomah County
|
Refunding Revenue Bonds
|
Mirabella at South Waterfront
|
Series 2014A
|
10/01/2034
|
5.125%
|
|
1,000,000
|
1,088,190
|
Multnomah & Clackamas Counties School District No. 10JT Gresham-Barlow(d)
|
Unlimited General Obligation Bonds
|
Series 2017A
|
06/15/2033
|
0.000%
|
|
7,160,000
|
4,712,497
|
Total
|
5,800,687
|
Pennsylvania 4.5%
|
Commonwealth Financing Authority
|
Revenue Bonds
|
Tobacco Master Settlement Payment
|
Series 2018
|
06/01/2029
|
5.000%
|
|
1,500,000
|
1,860,120
|
Cumberland County Municipal Authority
|
Refunding Revenue Bonds
|
Diakon Lutheran Ministries
|
Series 2015
|
01/01/2027
|
5.000%
|
|
2,500,000
|
2,812,800
|
01/01/2028
|
5.000%
|
|
3,840,000
|
4,307,328
|
Delaware River Joint Toll Bridge Commission
|
Revenue Bonds
|
Series 2017
|
07/01/2033
|
5.000%
|
|
2,250,000
|
2,765,767
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
16
|
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Delaware River Port Authority
|
Refunding Revenue Bonds
|
Port District Project
|
Series 2012
|
01/01/2027
|
5.000%
|
|
1,835,000
|
2,014,114
|
Revenue Bonds
|
Series 2018A
|
01/01/2036
|
5.000%
|
|
2,000,000
|
2,506,920
|
Elizabeth Forward School District(d)
|
Unlimited General Obligation Bonds
|
Capital Appreciation
|
Series 1994B Escrowed to Maturity (NPFGC)
|
09/01/2021
|
0.000%
|
|
2,210,000
|
2,154,043
|
Lancaster County Solid Waste Management Authority
|
Revenue Bonds
|
Series 2013A
|
12/15/2029
|
5.250%
|
|
3,100,000
|
3,492,553
|
Northampton County General Purpose Authority
|
Refunding Revenue Bonds
|
St. Luke’s University Health Network
|
Series 2016
|
08/15/2026
|
5.000%
|
|
3,770,000
|
4,560,494
|
Pennsylvania Turnpike Commission(h)
|
Prerefunded 12/01/20 Revenue Bonds
|
Capital Appreciation
|
Subordinated Series 2010B-2
|
12/01/2024
|
5.350%
|
|
20,000,000
|
20,892,400
|
Pennsylvania Turnpike Commission
|
Prerefunded 12/01/20 Revenue Bonds
|
Subordinated Series 2011A
|
12/01/2031
|
5.625%
|
|
4,875,000
|
5,104,125
|
Revenue Bonds
|
Series 2018A-2
|
12/01/2036
|
5.000%
|
|
2,500,000
|
3,094,550
|
Total
|
55,565,214
|
Rhode Island 0.3%
|
Rhode Island Depositors Economic Protection Corp.
|
Revenue Bonds
|
Series 1993A Escrowed to Maturity (AGM)
|
08/01/2021
|
5.750%
|
|
2,165,000
|
2,333,459
|
Rhode Island Turnpike & Bridge Authority
|
Refunding Revenue Bonds
|
Series 2016A
|
10/01/2033
|
5.000%
|
|
1,300,000
|
1,534,195
|
Total
|
3,867,654
|
South Carolina 3.5%
|
Beaufort-Jasper Water & Sewer Authority
|
Refunding Revenue Bonds
|
Series 2016B
|
03/01/2025
|
5.000%
|
|
1,000,000
|
1,190,540
|
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
County of Florence
|
Refunding Revenue Bonds
|
McLeod Regional Medical Center Project
|
Series 2014
|
11/01/2031
|
5.000%
|
|
3,250,000
|
3,726,092
|
11/01/2032
|
5.000%
|
|
5,000,000
|
5,718,300
|
County of Greenwood
|
Refunding Revenue Bonds
|
Self Regional Healthcare
|
Series 2012B
|
10/01/2031
|
5.000%
|
|
5,000,000
|
5,379,400
|
South Carolina Jobs-Economic Development Authority
|
Refunding Revenue Bonds
|
Prisma Health Obligated Group
|
05/01/2036
|
5.000%
|
|
7,000,000
|
8,405,880
|
Revenue Bonds
|
Lutheran Homes of South Carolina Obligation Group
|
Series 2013
|
05/01/2028
|
5.000%
|
|
3,500,000
|
3,714,900
|
Wofford College Project
|
Series 2019
|
04/01/2038
|
5.000%
|
|
930,000
|
1,118,660
|
York Preparatory Academy Project
|
Series 2014A
|
11/01/2033
|
7.000%
|
|
590,000
|
657,236
|
South Carolina Jobs-Economic Development Authority(c)
|
Revenue Bonds
|
Series 2015A
|
08/15/2025
|
4.500%
|
|
395,000
|
410,903
|
South Carolina Public Service Authority
|
Refunding Revenue Bonds
|
Series 2015A
|
12/01/2026
|
5.000%
|
|
7,000,000
|
8,247,750
|
Series 2016A
|
12/01/2030
|
5.000%
|
|
4,000,000
|
4,764,640
|
Total
|
43,334,301
|
South Dakota 0.5%
|
South Dakota Health & Educational Facilities Authority
|
Refunding Revenue Bonds
|
Sanford Obligated Group
|
Series 2015
|
11/01/2026
|
5.000%
|
|
1,000,000
|
1,191,250
|
Revenue Bonds
|
Regional Health
|
Series 2017
|
09/01/2029
|
5.000%
|
|
1,700,000
|
2,094,740
|
09/01/2030
|
5.000%
|
|
2,250,000
|
2,755,192
|
Total
|
6,041,182
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
17
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value ($)
|
Tennessee 0.1%
|
Chattanooga Health Educational & Housing Facility Board
|
Refunding Revenue Bonds
|
Student Housing - CDFI Phase I
|
Series 2015
|
10/01/2029
|
5.000%
|
|
1,000,000
|
1,149,510
|
Texas 13.4%
|
Austin Convention Enterprises, Inc.
|
Refunding Revenue Bonds
|
Convention Center 1st Tier
|
Series 2017
|
01/01/2028
|
5.000%
|
|
1,850,000
|
2,191,029
|
Central Texas Regional Mobility Authority
|
Prerefunded 01/01/21 Revenue Bonds
|
Senior Lien
|
Series 2011
|
01/01/2031
|
5.750%
|
|
15,230,000
|
16,020,894
|
Revenue Bonds
|
Senior Lien
|
Series 2015A
|
01/01/2030
|
5.000%
|
|
1,550,000
|
1,803,068
|
Central Texas Turnpike System
|
Subordinated Refunding Revenue Bonds
|
Series 2015C
|
08/15/2031
|
5.000%
|
|
7,500,000
|
8,527,650
|
08/15/2032
|
5.000%
|
|
6,000,000
|
6,809,220
|
08/15/2034
|
5.000%
|
|
10,240,000
|
11,583,488
|
City of Austin Airport System
|
Revenue Bonds
|
Series 2017A
|
11/15/2035
|
5.000%
|
|
1,000,000
|
1,197,440
|
City of Austin Airport System(e)
|
Revenue Bonds
|
Series 2019B AMT
|
11/15/2035
|
5.000%
|
|
2,650,000
|
3,304,338
|
City of Garland Electric Utility System
|
Refunding Revenue Bonds
|
Series 2019
|
03/01/2037
|
5.000%
|
|
1,700,000
|
2,117,061
|
City of Houston
|
Refunding Revenue Bonds
|
Convention & Entertainment
|
Series 2015
|
09/01/2027
|
5.000%
|
|
1,215,000
|
1,405,816
|
09/01/2029
|
5.000%
|
|
1,500,000
|
1,723,500
|
Convention & Entertainment Facilities
|
Series 2014
|
09/01/2030
|
5.000%
|
|
1,000,000
|
1,144,320
|
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
City of Houston Airport System
|
Refunding Revenue Bonds
|
Subordinated Series 2018D
|
07/01/2035
|
5.000%
|
|
2,500,000
|
3,092,725
|
Subordinated Refunding Revenue Bonds
|
Lien
|
Series 2012B
|
07/01/2028
|
5.000%
|
|
7,000,000
|
7,675,640
|
City of Houston Combined Utility System
|
Refunding Revenue Bonds
|
First Lien
|
Series 2016B
|
11/15/2034
|
5.000%
|
|
10,000,000
|
12,061,100
|
Clifton Higher Education Finance Corp.
|
Revenue Bonds
|
International Leadership
|
Series 2015
|
08/15/2035
|
5.500%
|
|
11,500,000
|
12,599,055
|
Dallas/Fort Worth International Airport
|
Refunding Revenue Bonds
|
Series 2012B
|
11/01/2028
|
5.000%
|
|
16,000,000
|
16,578,240
|
Duncanville Independent School District(d)
|
Unlimited General Obligation Refunding Bonds
|
Capital Appreciation
|
Series 2005 (Permanent School Fund Guarantee)
|
02/15/2022
|
0.000%
|
|
2,000,000
|
1,940,700
|
Harris County-Houston Sports Authority
|
Refunding Revenue Bonds
|
2nd Lien
|
Series 2014C
|
11/15/2032
|
5.000%
|
|
500,000
|
567,960
|
Houston Higher Education Finance Corp.
|
Prerefunded 05/15/21 Revenue Bonds
|
Cosmos Foundation, Inc.
|
Series 2011
|
05/15/2031
|
6.500%
|
|
535,000
|
576,254
|
05/15/2031
|
6.500%
|
|
465,000
|
500,856
|
Lower Colorado River Authority
|
Refunding Revenue Bonds
|
LCRA Transmission Services Corp.
|
Series 2011
|
05/15/2027
|
5.000%
|
|
11,195,000
|
11,811,397
|
Revenue Bonds
|
LCRA Transmission Services Corp. Project
|
Series 2019
|
05/15/2038
|
5.000%
|
|
1,500,000
|
1,863,135
|
New Hope Cultural Education Facilities Finance Corp.
|
Revenue Bonds
|
Cardinal Bay, Inc. - Village on the Park
|
Series 2016
|
07/01/2036
|
4.000%
|
|
2,250,000
|
2,322,967
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
18
|
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
NCCD-College Station Properties LLC
|
Series 2015
|
07/01/2035
|
5.000%
|
|
4,000,000
|
3,711,960
|
Series 2015A
|
07/01/2030
|
5.000%
|
|
7,800,000
|
7,258,212
|
New Hope Cultural Education Facilities Finance Corp.(c)
|
Revenue Bonds
|
Jubilee Academic Center Project
|
Series 2017
|
08/15/2027
|
4.250%
|
|
615,000
|
627,995
|
08/15/2037
|
5.000%
|
|
530,000
|
543,118
|
North Texas Tollway Authority
|
Refunding Revenue Bonds
|
1st Tier
|
Series 2017A
|
01/01/2034
|
5.000%
|
|
1,000,000
|
1,208,820
|
2nd Tier
|
Series 2015A
|
01/01/2032
|
5.000%
|
|
16,800,000
|
19,457,424
|
System-2nd Tier
|
01/01/2031
|
5.000%
|
|
1,415,000
|
1,601,851
|
Texas City Industrial Development Corp.
|
Refunding Revenue Bonds
|
Arco Pipe Line Co. Project
|
Series 1990
|
10/01/2020
|
7.375%
|
|
3,000,000
|
3,160,890
|
Texas Transportation Commission(d)
|
Revenue Bonds
|
First Tier Toll
|
Series 2019
|
08/01/2038
|
0.000%
|
|
550,000
|
263,758
|
Total
|
167,251,881
|
Utah 0.2%
|
Salt Lake City Corp. Airport
|
Revenue Bonds
|
Series 2017B
|
07/01/2032
|
5.000%
|
|
1,000,000
|
1,219,990
|
07/01/2033
|
5.000%
|
|
1,000,000
|
1,216,450
|
Total
|
2,436,440
|
Vermont 1.2%
|
Vermont Educational & Health Buildings Financing Agency
|
Refunding Revenue Bonds
|
University of Vermont Medical Center
|
Series 2016A
|
12/01/2033
|
5.000%
|
|
12,445,000
|
14,745,583
|
Municipal Bonds (continued)
|
Issue Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value ($)
|
Virginia 0.2%
|
Dulles Town Center Community Development Authority
|
Refunding Special Assessment Bonds
|
Dulles Town Center Project
|
Series 2012
|
03/01/2026
|
4.250%
|
|
1,000,000
|
1,014,780
|
Virginia Gateway Community Development Authority
|
Refunding Special Assessment Bonds
|
Series 2012
|
03/01/2030
|
5.000%
|
|
1,500,000
|
1,533,570
|
Total
|
2,548,350
|
Washington 1.3%
|
King County Public Hospital District No. 4
|
Revenue Bonds
|
Series 2015A
|
12/01/2025
|
5.000%
|
|
2,960,000
|
3,087,073
|
12/01/2030
|
5.750%
|
|
2,820,000
|
2,995,629
|
Port of Seattle(e)
|
Revenue Bonds
|
Intermediate Lien
|
Series 2019 AMT
|
04/01/2036
|
5.000%
|
|
5,000,000
|
6,126,000
|
Washington State Housing Finance Commission
|
Revenue Bonds
|
Heron’s Key
|
Series 2015A
|
07/01/2030
|
6.500%
|
|
570,000
|
618,940
|
07/01/2035
|
6.750%
|
|
1,090,000
|
1,190,760
|
Transforming Age Projects
|
Series 2019
|
01/01/2026
|
2.375%
|
|
1,500,000
|
1,501,305
|
Total
|
15,519,707
|
West Virginia 0.2%
|
West Virginia Hospital Finance Authority
|
Revenue Bonds
|
Charleston Area Medical Center, Inc.
|
Series 1993A Escrowed to Maturity
|
09/01/2023
|
6.500%
|
|
2,490,000
|
2,771,744
|
Wisconsin 0.4%
|
Public Finance Authority(c)
|
Refunding Revenue Bonds
|
Mary’s Woods at Marylhurst
|
Series 2017
|
05/15/2037
|
5.250%
|
|
1,000,000
|
1,129,190
|
Wisconsin Health & Educational Facilities Authority
|
Refunding Revenue Bonds
|
ProHealth Care, Inc. Obligated Group
|
Series 2015
|
08/15/2031
|
5.000%
|
|
1,000,000
|
1,135,550
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
19
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Rogers Memorial Hospital, Inc.
|
Series 2014A
|
07/01/2034
|
5.000%
|
|
2,500,000
|
2,821,700
|
Total
|
5,086,440
|
Total Municipal Bonds
(Cost $1,144,631,809)
|
1,233,658,637
|
Money Market Funds 0.4%
|
|
Shares
|
Value ($)
|
Dreyfus AMT-Free Tax Exempt Cash Management Fund, Institutional Shares, 1.068%(i)
|
71,059
|
71,066
|
JPMorgan Institutional Tax Free Money Market Fund, Institutional Shares, 1.045%(i)
|
4,426,254
|
4,426,254
|
Total Money Market Funds
(Cost $4,497,312)
|
4,497,320
|
Total Investments in Securities
(Cost $1,151,429,121)
|
1,240,455,957
|
Other Assets & Liabilities, Net
|
|
3,736,880
|
Net Assets
|
$1,244,192,837
|
Notes to Portfolio of
Investments
(a)
|
The Fund is entitled to receive principal and interest from the guarantor after a day or a week’s notice or upon maturity. The maturity date disclosed represents the final maturity.
|
(b)
|
Represents a variable rate security where the coupon rate adjusts on specified dates (generally daily or weekly) using the prevailing money market rate. The interest rate shown was
the current rate as of October 31, 2019.
|
(c)
|
Represents privately placed and other securities and instruments exempt from Securities and Exchange Commission registration (collectively, private placements), such as Section
4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. The Fund may invest in private placements determined to be liquid as well as those determined to be illiquid.
Private placements may be determined to be liquid under guidelines established by the Fund’s Board of Trustees. At October 31, 2019, the total value of these securities amounted to $15,277,990, which represents
1.23% of total net assets.
|
(d)
|
Zero coupon bond.
|
(e)
|
Income from this security may be subject to alternative minimum tax.
|
(f)
|
Represents securities that have defaulted on payment of interest. The Fund has stopped accruing interest on these securities. At October 31, 2019, the total value of these securities
amounted to $88,184, which represents 0.01% of total net assets.
|
(g)
|
Represents a security purchased on a when-issued basis.
|
(h)
|
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 October 31, 2019.
|
(i)
|
The rate shown is the seven-day current annualized yield at October 31, 2019.
|
Abbreviation Legend
AGM
|
Assured Guaranty Municipal Corporation
|
AMT
|
Alternative Minimum Tax
|
NPFGC
|
National Public Finance Guarantee Corporation
|
Fair value measurements
The Fund categorizes its fair
value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available.
Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the
Fund’s assumptions about the information market participants would use in
The accompanying Notes to Financial Statements are
an integral part of this statement.
20
|
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
Portfolio of Investments (continued)
October 31, 2019
Fair value measurements (continued)
pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset’s or liability’s fair value measurement.
The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however,
they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in
the three broad levels listed below:
■
|
Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments.
|
■
|
Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.).
|
■
|
Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments).
|
Inputs that are used in determining
fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary
between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered
by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include
periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels
within the hierarchy.
Investments falling into the Level 3
category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency
and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant
unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and
estimated cash flows, and comparable company data.
Under the direction of the
Fund’s Board of Trustees (the Board), the Investment Manager’s Valuation Committee (the Committee) is responsible for overseeing the valuation procedures approved by the Board. The Committee consists of
voting and non-voting members from various groups within the Investment Manager’s organization, including operations and accounting, trading and investments, compliance, risk management and legal.
The Committee meets at least monthly
to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of
Board-approved valuation control policies and procedures (the Policies). The Policies address, among other things, instances when market quotations are or are not readily available, including recommendations of third
party pricing vendors and a determination of appropriate pricing methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale
pricing, including those that are illiquid, restricted, or in default; and the effectiveness of third party pricing vendors, including periodic reviews of vendors. The Committee meets more frequently, as needed, to
discuss additional valuation matters, which may include the need to review back-testing results, review time-sensitive information or approve related valuation actions. The Committee reports to the Board, with members
of the Committee meeting with the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.
The following table is a summary of
the inputs used to value the Fund’s investments at October 31, 2019:
|
Level 1 ($)
|
Level 2 ($)
|
Level 3 ($)
|
Total ($)
|
Investments in Securities
|
|
|
|
|
Floating Rate Notes
|
—
|
2,300,000
|
—
|
2,300,000
|
Municipal Bonds
|
—
|
1,233,658,637
|
—
|
1,233,658,637
|
Money Market Funds
|
4,497,320
|
—
|
—
|
4,497,320
|
Total Investments in Securities
|
4,497,320
|
1,235,958,637
|
—
|
1,240,455,957
|
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The Fund’s assets assigned to
the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical
assets.
The accompanying Notes to Financial Statements are
an integral part of this statement.
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
21
|
Statement of Assets and Liabilities
October 31, 2019
Assets
|
|
Investments in securities, at value
|
|
Unaffiliated issuers (cost $1,151,429,121)
|
$1,240,455,957
|
Receivable for:
|
|
Capital shares sold
|
2,090,002
|
Interest
|
15,164,262
|
Expense reimbursement due from Investment Manager
|
2,172
|
Prepaid expenses
|
6,556
|
Trustees’ deferred compensation plan
|
309,956
|
Total assets
|
1,258,028,905
|
Liabilities
|
|
Due to custodian
|
121
|
Payable for:
|
|
Investments purchased on a delayed delivery basis
|
8,533,182
|
Capital shares purchased
|
1,343,477
|
Distributions to shareholders
|
3,131,878
|
Management services fees
|
16,019
|
Distribution and/or service fees
|
1,423
|
Transfer agent fees
|
127,164
|
Compensation of board members
|
342,098
|
Compensation of chief compliance officer
|
46
|
Other expenses
|
30,704
|
Trustees’ deferred compensation plan
|
309,956
|
Total liabilities
|
13,836,068
|
Net assets applicable to outstanding capital stock
|
$1,244,192,837
|
Represented by
|
|
Paid in capital
|
1,147,955,308
|
Total distributable earnings (loss)
|
96,237,529
|
Total - representing net assets applicable to outstanding capital stock
|
$1,244,192,837
|
The accompanying Notes to Financial Statements are
an integral part of this statement.
22
|
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
Statement of Assets and Liabilities (continued)
October 31, 2019
Class A
|
|
Net assets
|
$152,575,458
|
Shares outstanding
|
14,403,153
|
Net asset value per share
|
$10.59
|
Maximum sales charge
|
3.00%
|
Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares)
|
$10.92
|
Advisor Class
|
|
Net assets
|
$5,926,690
|
Shares outstanding
|
559,889
|
Net asset value per share
|
$10.59
|
Class C
|
|
Net assets
|
$23,521,634
|
Shares outstanding
|
2,220,114
|
Net asset value per share
|
$10.59
|
Institutional Class
|
|
Net assets
|
$1,012,229,106
|
Shares outstanding
|
95,510,367
|
Net asset value per share
|
$10.60
|
Institutional 2 Class
|
|
Net assets
|
$35,835,860
|
Shares outstanding
|
3,386,849
|
Net asset value per share
|
$10.58
|
Institutional 3 Class
|
|
Net assets
|
$2,542,026
|
Shares outstanding
|
239,617
|
Net asset value per share
|
$10.61
|
Class V
|
|
Net assets
|
$11,562,063
|
Shares outstanding
|
1,091,490
|
Net asset value per share
|
$10.59
|
Maximum sales charge
|
4.75%
|
Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge
for Class V shares)
|
$11.12
|
The accompanying Notes to Financial Statements are
an integral part of this statement.
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
23
|
Statement of Operations
Year Ended October 31, 2019
Net investment income
|
|
Income:
|
|
Dividends — unaffiliated issuers
|
$21,198
|
Interest
|
48,333,297
|
Total income
|
48,354,495
|
Expenses:
|
|
Management services fees
|
6,098,804
|
Distribution and/or service fees
|
|
Class A
|
311,478
|
Class C
|
224,391
|
Class T
|
3
|
Class V
|
17,790
|
Transfer agent fees
|
|
Class A
|
195,672
|
Advisor Class
|
13,562
|
Class C
|
33,233
|
Institutional Class
|
1,336,344
|
Institutional 2 Class
|
15,959
|
Institutional 3 Class
|
310
|
Class T
|
2
|
Class V
|
14,908
|
Compensation of board members
|
39,320
|
Custodian fees
|
10,940
|
Printing and postage fees
|
25,273
|
Registration fees
|
118,796
|
Audit fees
|
29,500
|
Legal fees
|
26,978
|
Line of credit interest
|
404
|
Compensation of chief compliance officer
|
498
|
Other
|
47,865
|
Total expenses
|
8,562,030
|
Fees waived or expenses reimbursed by Investment Manager and its affiliates
|
(818,863)
|
Expense reduction
|
(340)
|
Total net expenses
|
7,742,827
|
Net investment income
|
40,611,668
|
Realized and unrealized gain (loss) — net
|
|
Net realized gain (loss) on:
|
|
Investments — unaffiliated issuers
|
4,904,348
|
Net realized gain
|
4,904,348
|
Net change in unrealized appreciation (depreciation) on:
|
|
Investments — unaffiliated issuers
|
56,482,128
|
Net change in unrealized appreciation (depreciation)
|
56,482,128
|
Net realized and unrealized gain
|
61,386,476
|
Net increase in net assets resulting from operations
|
$101,998,144
|
The accompanying Notes to
Financial Statements are an integral part of this statement.
24
|
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
Statement of Changes in Net Assets
|
Year Ended
October 31, 2019
|
Year Ended
October 31, 2018
|
Operations
|
|
|
Net investment income
|
$40,611,668
|
$53,668,463
|
Net realized gain
|
4,904,348
|
2,260,686
|
Net change in unrealized appreciation (depreciation)
|
56,482,128
|
(72,641,741)
|
Net increase (decrease) in net assets resulting from operations
|
101,998,144
|
(16,712,592)
|
Distributions to shareholders
|
|
|
Net investment income and net realized gains
|
|
|
Class A
|
(4,693,722)
|
(5,099,445)
|
Advisor Class
|
(351,686)
|
(594,799)
|
Class C
|
(625,926)
|
(875,103)
|
Institutional Class
|
(34,208,884)
|
(46,199,712)
|
Institutional 2 Class
|
(889,531)
|
(435,752)
|
Institutional 3 Class
|
(79,422)
|
(69,676)
|
Class T
|
(40)
|
(290)
|
Class V
|
(363,570)
|
(393,685)
|
Total distributions to shareholders
|
(41,212,781)
|
(53,668,462)
|
Decrease in net assets from capital stock activity
|
(286,383,429)
|
(418,203,979)
|
Total decrease in net assets
|
(225,598,066)
|
(488,585,033)
|
Net assets at beginning of year
|
1,469,790,903
|
1,958,375,936
|
Net assets at end of year
|
$1,244,192,837
|
$1,469,790,903
|
The accompanying Notes to
Financial Statements are an integral part of this statement.
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
25
|
Statement of Changes in Net Assets (continued)
|
Year Ended
|
Year Ended
|
|
October 31, 2019
|
October 31, 2018
|
|
Shares
|
Dollars ($)
|
Shares
|
Dollars ($)
|
Capital stock activity
|
Class A
|
|
|
|
|
Subscriptions
|
1,851,275
|
19,214,102
|
1,490,190
|
15,416,671
|
Distributions reinvested
|
390,395
|
4,075,257
|
431,213
|
4,444,392
|
Redemptions
|
(3,420,104)
|
(35,553,470)
|
(4,299,088)
|
(44,493,018)
|
Net decrease
|
(1,178,434)
|
(12,264,111)
|
(2,377,685)
|
(24,631,955)
|
Advisor Class
|
|
|
|
|
Subscriptions
|
282,020
|
2,873,794
|
602,959
|
6,226,496
|
Distributions reinvested
|
33,970
|
351,232
|
57,698
|
593,900
|
Redemptions
|
(1,769,512)
|
(18,219,538)
|
(290,708)
|
(2,997,538)
|
Net increase (decrease)
|
(1,453,522)
|
(14,994,512)
|
369,949
|
3,822,858
|
Class C
|
|
|
|
|
Subscriptions
|
234,173
|
2,426,061
|
147,876
|
1,536,944
|
Distributions reinvested
|
49,533
|
516,386
|
68,982
|
711,543
|
Redemptions
|
(940,107)
|
(9,780,101)
|
(1,605,253)
|
(16,580,207)
|
Net decrease
|
(656,401)
|
(6,837,654)
|
(1,388,395)
|
(14,331,720)
|
Institutional Class
|
|
|
|
|
Subscriptions
|
5,041,580
|
52,387,010
|
5,293,666
|
54,870,721
|
Distributions reinvested
|
463,688
|
4,844,138
|
523,087
|
5,395,202
|
Redemptions
|
(31,841,094)
|
(327,841,315)
|
(43,241,079)
|
(446,663,285)
|
Net decrease
|
(26,335,826)
|
(270,610,167)
|
(37,424,326)
|
(386,397,362)
|
Institutional 2 Class
|
|
|
|
|
Subscriptions
|
2,322,152
|
24,023,898
|
554,380
|
5,692,213
|
Distributions reinvested
|
84,869
|
888,838
|
42,341
|
435,437
|
Redemptions
|
(574,080)
|
(5,927,557)
|
(221,027)
|
(2,273,131)
|
Net increase
|
1,832,941
|
18,985,179
|
375,694
|
3,854,519
|
Institutional 3 Class
|
|
|
|
|
Subscriptions
|
161,835
|
1,672,363
|
98,449
|
1,022,986
|
Distributions reinvested
|
5,954
|
62,274
|
6,721
|
69,349
|
Redemptions
|
(109,443)
|
(1,135,693)
|
(100,632)
|
(1,034,644)
|
Net increase
|
58,346
|
598,944
|
4,538
|
57,691
|
Class T
|
|
|
|
|
Redemptions
|
(959)
|
(9,763)
|
—
|
—
|
Net decrease
|
(959)
|
(9,763)
|
—
|
—
|
Class V
|
|
|
|
|
Subscriptions
|
3,631
|
37,848
|
25,163
|
263,302
|
Distributions reinvested
|
25,535
|
266,493
|
27,818
|
286,601
|
Redemptions
|
(149,920)
|
(1,555,686)
|
(109,575)
|
(1,127,913)
|
Net decrease
|
(120,754)
|
(1,251,345)
|
(56,594)
|
(578,010)
|
Total net decrease
|
(27,854,609)
|
(286,383,429)
|
(40,496,819)
|
(418,203,979)
|
The accompanying Notes to Financial Statements are
an integral part of this statement.
26
|
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
[THIS PAGE INTENTIONALLY LEFT
BLANK]
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
27
|
The following table is intended to
help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are
calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total
return and portfolio turnover are not annualized for periods of less than one year. The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments and certain
derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be higher.
|
Net asset value,
beginning of
period
|
Net
investment
income
|
Net
realized
and
unrealized
gain (loss)
|
Total from
investment
operations
|
Distributions
from net
investment
income
|
Distributions
from net
realized
gains
|
Total
distributions to
shareholders
|
Class A
|
Year Ended 10/31/2019
|
$10.11
|
0.31
|
0.48
|
0.79
|
(0.31)
|
(0.00)(c)
|
(0.31)
|
Year Ended 10/31/2018
|
$10.54
|
0.31
|
(0.43)
|
(0.12)
|
(0.31)
|
—
|
(0.31)
|
Year Ended 10/31/2017
|
$10.71
|
0.31
|
(0.17)
|
0.14
|
(0.31)
|
—
|
(0.31)
|
Year Ended 10/31/2016
|
$10.68
|
0.32
|
0.03
|
0.35
|
(0.32)
|
—
|
(0.32)
|
Year Ended 10/31/2015
|
$10.81
|
0.34
|
(0.13)
|
0.21
|
(0.34)
|
—
|
(0.34)
|
Advisor Class
|
Year Ended 10/31/2019
|
$10.11
|
0.33
|
0.48
|
0.81
|
(0.33)
|
(0.00)(c)
|
(0.33)
|
Year Ended 10/31/2018
|
$10.53
|
0.33
|
(0.42)
|
(0.09)
|
(0.33)
|
—
|
(0.33)
|
Year Ended 10/31/2017
|
$10.71
|
0.33
|
(0.18)
|
0.15
|
(0.33)
|
—
|
(0.33)
|
Year Ended 10/31/2016
|
$10.67
|
0.34
|
0.04
|
0.38
|
(0.34)
|
—
|
(0.34)
|
Year Ended 10/31/2015
|
$10.81
|
0.36
|
(0.14)
|
0.22
|
(0.36)
|
—
|
(0.36)
|
Class C
|
Year Ended 10/31/2019
|
$10.12
|
0.24
|
0.48
|
0.72
|
(0.25)
|
(0.00)(c)
|
(0.25)
|
Year Ended 10/31/2018
|
$10.54
|
0.24
|
(0.42)
|
(0.18)
|
(0.24)
|
—
|
(0.24)
|
Year Ended 10/31/2017
|
$10.72
|
0.25
|
(0.19)
|
0.06
|
(0.24)
|
—
|
(0.24)
|
Year Ended 10/31/2016
|
$10.68
|
0.25
|
0.04
|
0.29
|
(0.25)
|
—
|
(0.25)
|
Year Ended 10/31/2015
|
$10.82
|
0.27
|
(0.14)
|
0.13
|
(0.27)
|
—
|
(0.27)
|
Institutional Class
|
Year Ended 10/31/2019
|
$10.12
|
0.33
|
0.48
|
0.81
|
(0.33)
|
(0.00)(c)
|
(0.33)
|
Year Ended 10/31/2018
|
$10.54
|
0.33
|
(0.42)
|
(0.09)
|
(0.33)
|
—
|
(0.33)
|
Year Ended 10/31/2017
|
$10.72
|
0.33
|
(0.18)
|
0.15
|
(0.33)
|
—
|
(0.33)
|
Year Ended 10/31/2016
|
$10.69
|
0.34
|
0.03
|
0.37
|
(0.34)
|
—
|
(0.34)
|
Year Ended 10/31/2015
|
$10.82
|
0.36
|
(0.13)
|
0.23
|
(0.36)
|
—
|
(0.36)
|
Institutional 2 Class
|
Year Ended 10/31/2019
|
$10.10
|
0.34
|
0.48
|
0.82
|
(0.34)
|
(0.00)(c)
|
(0.34)
|
Year Ended 10/31/2018
|
$10.53
|
0.34
|
(0.44)
|
(0.10)
|
(0.33)
|
—
|
(0.33)
|
Year Ended 10/31/2017
|
$10.70
|
0.34
|
(0.17)
|
0.17
|
(0.34)
|
—
|
(0.34)
|
Year Ended 10/31/2016
|
$10.66
|
0.35
|
0.04
|
0.39
|
(0.35)
|
—
|
(0.35)
|
Year Ended 10/31/2015
|
$10.80
|
0.37
|
(0.14)
|
0.23
|
(0.37)
|
—
|
(0.37)
|
The accompanying Notes to
Financial Statements are an integral part of this statement.
28
|
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
Financial Highlights (continued)
|
Proceeds from
regulatory
settlements
|
Net
asset
value,
end of
period
|
Total
return
|
Total gross
expense
ratio to
average
net assets(a)
|
Total net
expense
ratio to
average
net assets(a),(b)
|
Net investment
income
ratio to
average
net assets
|
Portfolio
turnover
|
Net
assets,
end of
period
(000’s)
|
Class A
|
Year Ended 10/31/2019
|
—
|
$10.59
|
7.94%
|
0.82%(d)
|
0.76%(d),(e)
|
2.97%
|
14%
|
$152,575
|
Year Ended 10/31/2018
|
—
|
$10.11
|
(1.18%)
|
0.81%(f)
|
0.76%(e),(f)
|
2.98%
|
8%
|
$157,597
|
Year Ended 10/31/2017
|
—
|
$10.54
|
1.39%
|
0.84%(g)
|
0.77%(e),(g)
|
2.99%
|
11%
|
$189,260
|
Year Ended 10/31/2016
|
—
|
$10.71
|
3.28%
|
0.86%
|
0.77%(e)
|
2.95%
|
6%
|
$246,873
|
Year Ended 10/31/2015
|
0.00(c)
|
$10.68
|
2.00%(h)
|
0.87%
|
0.75%(e)
|
3.19%
|
15%
|
$233,125
|
Advisor Class
|
Year Ended 10/31/2019
|
—
|
$10.59
|
8.15%
|
0.62%(d)
|
0.56%(d),(e)
|
3.22%
|
14%
|
$5,927
|
Year Ended 10/31/2018
|
—
|
$10.11
|
(0.89%)
|
0.61%(f)
|
0.56%(e),(f)
|
3.18%
|
8%
|
$20,349
|
Year Ended 10/31/2017
|
—
|
$10.53
|
1.50%
|
0.63%
|
0.58%(e)
|
3.16%
|
11%
|
$17,306
|
Year Ended 10/31/2016
|
—
|
$10.71
|
3.58%
|
0.66%
|
0.57%(e)
|
3.15%
|
6%
|
$8,325
|
Year Ended 10/31/2015
|
0.00(c)
|
$10.67
|
2.11%(h)
|
0.67%
|
0.55%(e)
|
3.42%
|
15%
|
$2,975
|
Class C
|
Year Ended 10/31/2019
|
—
|
$10.59
|
7.14%
|
1.47%(d)
|
1.41%(d),(e)
|
2.33%
|
14%
|
$23,522
|
Year Ended 10/31/2018
|
—
|
$10.12
|
(1.72%)
|
1.46%(f)
|
1.41%(e),(f)
|
2.32%
|
8%
|
$29,097
|
Year Ended 10/31/2017
|
—
|
$10.54
|
0.64%
|
1.49%(g)
|
1.42%(e),(g)
|
2.34%
|
11%
|
$44,951
|
Year Ended 10/31/2016
|
—
|
$10.72
|
2.70%
|
1.51%
|
1.42%(e)
|
2.29%
|
6%
|
$59,746
|
Year Ended 10/31/2015
|
0.00(c)
|
$10.68
|
1.24%(h)
|
1.52%
|
1.40%(e)
|
2.54%
|
15%
|
$53,774
|
Institutional Class
|
Year Ended 10/31/2019
|
—
|
$10.60
|
8.15%
|
0.62%(d)
|
0.56%(d),(e)
|
3.17%
|
14%
|
$1,012,229
|
Year Ended 10/31/2018
|
—
|
$10.12
|
(0.88%)
|
0.61%(f)
|
0.56%(e),(f)
|
3.17%
|
8%
|
$1,232,944
|
Year Ended 10/31/2017
|
—
|
$10.54
|
1.50%
|
0.63%(g)
|
0.57%(e),(g)
|
3.18%
|
11%
|
$1,679,211
|
Year Ended 10/31/2016
|
—
|
$10.72
|
3.48%
|
0.66%
|
0.57%(e)
|
3.15%
|
6%
|
$2,087,345
|
Year Ended 10/31/2015
|
0.00(c)
|
$10.69
|
2.20%(h)
|
0.67%
|
0.55%(e)
|
3.39%
|
15%
|
$1,846,198
|
Institutional 2 Class
|
Year Ended 10/31/2019
|
—
|
$10.58
|
8.24%
|
0.55%(d)
|
0.49%(d)
|
3.21%
|
14%
|
$35,836
|
Year Ended 10/31/2018
|
—
|
$10.10
|
(0.92%)
|
0.55%(f)
|
0.50%(f)
|
3.25%
|
8%
|
$15,697
|
Year Ended 10/31/2017
|
—
|
$10.53
|
1.67%
|
0.54%(g)
|
0.50%(g)
|
3.26%
|
11%
|
$12,401
|
Year Ended 10/31/2016
|
—
|
$10.70
|
3.68%
|
0.53%
|
0.48%
|
3.23%
|
6%
|
$8,895
|
Year Ended 10/31/2015
|
0.00(c)
|
$10.66
|
2.20%(h)
|
0.53%
|
0.45%
|
3.50%
|
15%
|
$5,106
|
The accompanying Notes to
Financial Statements are an integral part of this statement.
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
29
|
Financial Highlights (continued)
|
Net asset value,
beginning of
period
|
Net
investment
income
|
Net
realized
and
unrealized
gain (loss)
|
Total from
investment
operations
|
Distributions
from net
investment
income
|
Distributions
from net
realized
gains
|
Total
distributions to
shareholders
|
Institutional 3 Class
|
Year Ended 10/31/2019
|
$10.13
|
0.34
|
0.49
|
0.83
|
(0.35)
|
(0.00)(c)
|
(0.35)
|
Year Ended 10/31/2018
|
$10.55
|
0.34
|
(0.42)
|
(0.08)
|
(0.34)
|
—
|
(0.34)
|
Year Ended 10/31/2017(i)
|
$10.43
|
0.22
|
0.13(j)
|
0.35
|
(0.23)
|
—
|
(0.23)
|
Class V
|
Year Ended 10/31/2019
|
$10.11
|
0.32
|
0.48
|
0.80
|
(0.32)
|
(0.00)(c)
|
(0.32)
|
Year Ended 10/31/2018
|
$10.54
|
0.31
|
(0.43)
|
(0.12)
|
(0.31)
|
—
|
(0.31)
|
Year Ended 10/31/2017
|
$10.71
|
0.32
|
(0.17)
|
0.15
|
(0.32)
|
—
|
(0.32)
|
Year Ended 10/31/2016
|
$10.68
|
0.33
|
0.02
|
0.35
|
(0.32)
|
—
|
(0.32)
|
Year Ended 10/31/2015
|
$10.81
|
0.35
|
(0.13)
|
0.22
|
(0.35)
|
—
|
(0.35)
|
Notes to Financial Highlights
|
(a)
|
In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such
indirect expenses are not included in the Fund’s reported expense ratios.
|
(b)
|
Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable.
|
(c)
|
Rounds to zero.
|
(d)
|
Ratios include line of credit interest expense which is less than 0.01%.
|
(e)
|
The benefits derived from expense reductions had an impact of less than 0.01%.
|
(f)
|
Ratios include interfund lending expense which is less than 0.01%.
|
(g)
|
Expenses have been reduced due to a reimbursement of expenses overbilled by a third party. If the reimbursement had been excluded, the expense ratios would have been higher by the
percentages shown for each class in the table below. All fee waivers and expense reimbursements by the Investment Manager and its affiliates were applied before giving effect to this third party reimbursement.
|
Year Ended
|
Class A
|
Class C
|
Institutional
Class
|
Institutional 2
Class
|
Class V
|
10/31/2017
|
0.01%
|
0.01%
|
0.01%
|
0.01%
|
0.01%
|
(h)
|
The Fund received proceeds from regulatory settlements. Had the Fund not received these proceeds, the total return would have been lower by 0.02%.
|
(i)
|
Institutional 3 Class shares commenced operations on March 1, 2017. Per share data and total return reflect activity from that date.
|
(j)
|
Calculation of the net gain (loss) per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gain (loss) presented in the Statement of
Operations due to the timing of subscriptions and redemptions of Fund shares in relation to fluctuations in the market value of the portfolio.
|
(k)
|
Annualized.
|
The accompanying Notes to
Financial Statements are an integral part of this statement.
30
|
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
Financial Highlights (continued)
|
Proceeds from
regulatory
settlements
|
Net
asset
value,
end of
period
|
Total
return
|
Total gross
expense
ratio to
average
net assets(a)
|
Total net
expense
ratio to
average
net assets(a),(b)
|
Net investment
income
ratio to
average
net assets
|
Portfolio
turnover
|
Net
assets,
end of
period
(000’s)
|
Institutional 3 Class
|
Year Ended 10/31/2019
|
—
|
$10.61
|
8.27%
|
0.51%(d)
|
0.44%(d)
|
3.28%
|
14%
|
$2,542
|
Year Ended 10/31/2018
|
—
|
$10.13
|
(0.76%)
|
0.50%(f)
|
0.45%(f)
|
3.31%
|
8%
|
$1,836
|
Year Ended 10/31/2017(i)
|
—
|
$10.55
|
3.35%
|
0.51%(k)
|
0.47%(k)
|
3.25%(k)
|
11%
|
$1,865
|
Class V
|
Year Ended 10/31/2019
|
—
|
$10.59
|
7.99%
|
0.77%(d)
|
0.71%(d),(e)
|
3.02%
|
14%
|
$11,562
|
Year Ended 10/31/2018
|
—
|
$10.11
|
(1.13%)
|
0.76%(f)
|
0.71%(e),(f)
|
3.03%
|
8%
|
$12,260
|
Year Ended 10/31/2017
|
—
|
$10.54
|
1.44%
|
0.79%(g)
|
0.72%(e),(g)
|
3.03%
|
11%
|
$13,371
|
Year Ended 10/31/2016
|
—
|
$10.71
|
3.33%
|
0.81%
|
0.72%(e)
|
3.00%
|
6%
|
$14,060
|
Year Ended 10/31/2015
|
0.00(c)
|
$10.68
|
2.05%(h)
|
0.82%
|
0.70%(e)
|
3.24%
|
15%
|
$14,263
|
The accompanying Notes to Financial Statements are
an integral part of this statement.
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
31
|
Notes to Financial Statements
October 31, 2019
Note 1. Organization
Columbia Intermediate Municipal
Bond Fund (the Fund), a series of Columbia Funds Series Trust I (the Trust), is a diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end
management investment company organized as a Massachusetts business trust.
Fund shares
The Trust may issue an unlimited
number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation
rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have
different minimum initial investment amounts and pay different distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a liquidation will be
proportional to the net asset value of each share class.
As described in the Fund’s
prospectus, Class A and Class C shares are offered to the general public for investment. Advisor Class, Institutional Class, Institutional 2 Class and Institutional 3 Class are available for purchase through
authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also described in the Fund’s prospectus. Class C shares automatically convert to
Class A shares after 10 years. Effective December 14, 2018, Class T shares merged, in a tax-free transaction, into Class A shares of the Fund and are no longer offered for sale. Class V shares are available only to
investors who received (and who continuously held) Class V shares in connection with previous fund reorganizations.
Note 2. Summary of
significant accounting policies
Basis of preparation
The Fund is an investment company
that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires
management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of
significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Debt securities generally are
valued by pricing services approved by the Board of Trustees based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques that take
into account, as applicable, factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as approved independent broker-dealer quotes. Debt securities for
which quotations are not readily available or not believed to be reflective of market value may also be valued based upon a bid quote from an approved independent broker-dealer. Debt securities maturing in 60 days or
less are valued primarily at amortized cost value, unless this method results in a valuation that management believes does not approximate market value.
Investments in open-end investment
companies, including money market funds, are valued at their latest net asset value.
Investments for which market
quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by
and under the general supervision of the Board of Trustees. If a security or class of securities (such as foreign securities) is valued at fair value, such value is likely to be different from the quoted or published
price for the security, if available.
The determination of fair value
often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and estimated risk premiums. Multiple inputs from various sources may be used
to determine fair value.
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Columbia Intermediate Municipal Bond Fund | Annual Report 2019
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Notes to Financial Statements (continued)
October 31, 2019
GAAP requires disclosure regarding
the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category. This information is disclosed following
the Fund’s Portfolio of Investments.
Delayed delivery securities
The Fund may trade securities on
other than normal settlement terms, including securities purchased or sold on a “when-issued” or "forward commitment" basis. This may increase risk to the Fund since the other party to the transaction may
fail to deliver, which could cause the Fund to subsequently invest at less advantageous prices. The Fund designates cash or liquid securities in an amount equal to the delayed delivery commitment.
Security transactions
Security transactions are accounted
for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income recognition
Interest income is recorded on an
accrual basis. Market premiums and discounts, including original issue discounts, are amortized and accreted, respectively, over the expected life of the security on all debt securities, unless otherwise noted.
The Fund may place a debt security
on non-accrual status and reduce related interest income when it becomes probable that the interest will not be collected and the amount of uncollectible interest can be reasonably estimated. A defaulted debt security
is removed from non-accrual status when the issuer resumes interest payments or when collectibility of interest is reasonably assured.
Dividend income is recorded on the
ex-dividend date.
Expenses
General expenses of the Trust are
allocated to the Fund and other funds of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are
charged to the Fund. Expenses directly attributable to a specific class of shares are charged to that share class.
Determination of class net asset
value
All income, expenses (other than
class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on
the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each
year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its net tax-exempt and investment company taxable income and net capital
gain, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net
income and certain other amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Distributions to shareholders
Distributions from net investment
income, if any, are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal
income tax regulations, which may differ from GAAP.
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
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33
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Notes to Financial Statements (continued)
October 31, 2019
Guarantees and indemnifications
Under the Trust’s
organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition,
certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims
that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
Recent accounting pronouncements
Accounting Standards Update 2017-08
Premium Amortization on Purchased Callable Debt Securities
In March 2017, the Financial
Accounting Standards Board issued Accounting Standards Update (ASU) No. 2017-08 Premium Amortization on Purchased Callable Debt Securities. ASU No. 2017-08 updates the accounting standards to shorten the amortization
period for certain purchased callable debt securities, held at a premium, to be amortized to the earliest call date. The update applies to securities with explicit, noncontingent call features that are callable at
fixed prices and on preset dates. The standard is effective for annual periods beginning after December 15, 2018 and interim periods within those fiscal years. Management does not expect the implementation of this
guidance to have a material impact on the financial statement amounts and footnote disclosures.
Accounting Standards Update 2018-13
Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement
In August 2018, the Financial
Accounting Standards Board issued Accounting Standards Update (ASU) No. 2018-13 Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The standard is effective for annual periods
beginning after December 15, 2019 and interim periods within those fiscal years, with early adoption permitted. After evaluation, management determined to adopt the ASU effective for the period ended July 31, 2019 and
all subsequent periods. To comply with the ASU, management implemented disclosure changes which include removal of the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, removal
of the policy for the timing of transfers between levels, removal of the description of the Level 3 valuation processes, as well as modifications to the measurement uncertainty disclosure.
Note 3. Fees and other
transactions with affiliates
Management services fees
The Fund has entered into a
Management Agreement with Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). Under the Management Agreement, the
Investment Manager provides the Fund with investment research and advice, as well as administrative and accounting services. The management services fee is an annual fee that is equal to a percentage of the
Fund’s daily net assets that declines from 0.48% to 0.29% as the Fund’s net assets increase. The effective management services fee rate for the year ended October 31, 2019 was 0.47% of the Fund’s
average daily net assets.
Compensation of board members
Members of the Board of Trustees
who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. These members of the Board of Trustees
may participate in a Deferred Compensation Plan (the Deferred Plan) which may be terminated at any time. Obligations of the Deferred Plan will be paid solely out of the Fund’s assets, and all amounts payable
under the Deferred Plan constitute a general unsecured obligation of the Fund.
Compensation of Chief Compliance
Officer
The Board of Trustees has appointed
a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated
to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
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Columbia Intermediate Municipal Bond Fund | Annual Report 2019
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Notes to Financial Statements (continued)
October 31, 2019
Transfer agency fees
Under a Transfer and Dividend
Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for
providing transfer agency services to the Fund. The Transfer Agent has contracted with DST Asset Manager Solutions, Inc. (DST) to serve as sub-transfer agent. The Transfer Agent pays the fees of DST for services as
sub-transfer agent and DST is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
The Fund pays the Transfer Agent a
monthly transfer agency fee based on the number or the average value of accounts, depending on the type of account. In addition, the Fund pays the Transfer Agent a fee for shareholder services based on the number of
accounts or on a percentage of the average aggregate value of the Fund’s shares maintained in omnibus accounts up to the lesser of the amount charged by the financial intermediary or a cap established by the
Board of Trustees from time to time.
The Transfer Agent also receives
compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees. Total transfer agency fees for Institutional 2 Class and Institutional 3 Class shares are subject to an
annual limitation of not more than 0.07% and 0.02%, respectively, of the average daily net assets attributable to each share class.
For the year ended October 31,
2019, the Fund’s effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
|
Effective rate (%)
|
Class A
|
0.13
|
Advisor Class
|
0.13
|
Class C
|
0.13
|
Institutional Class
|
0.13
|
Institutional 2 Class
|
0.06
|
Institutional 3 Class
|
0.01
|
Class T
|
0.01(a)
|
Class V
|
0.13
|
An annual minimum account balance
fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum
account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the year ended October 31, 2019, these minimum account balance fees reduced total expenses
of the Fund by $340.
Distribution and service fees
The Fund has entered into an
agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder
services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the
Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a
monthly service fee to the Distributor at the maximum annual rate of 0.20% of the average daily net assets attributable to Class A and Class C shares of the Fund. The Fund pays a monthly service fee to the
Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class T shares of the Fund. Also under the Plans, the Fund pays a monthly distribution fee to the Distributor at the
maximum annual rate of 0.65% of the average daily net assets attributable to Class C shares of the Fund. As a result of all Class T shares of the Fund being redeemed or converted to Class A shares, December 14,
2018 was the last day the Fund paid a distribution and shareholder services fee for Class T shares.
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
35
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Notes to Financial Statements (continued)
October 31, 2019
Shareholder services fees
The Fund has adopted a shareholder
services plan that permits it to pay for certain services provided to Class V shareholders by their selling and/or servicing agents. The Fund may pay shareholder servicing fees up to an aggregate annual rate of 0.40%
of the Fund’s average daily net assets attributable to Class V shares (comprised of up to 0.20% for shareholder liaison services and up to 0.20% for administrative support services). These fees are currently
limited to an aggregate annual rate of not more than 0.15% of the Fund’s average daily net assets attributable to Class V shares.
Sales charges (unaudited)
Sales charges, including front-end
charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the year ended October 31, 2019, if any, are listed below:
|
Front End (%)
|
CDSC (%)
|
Amount ($)
|
Class A
|
3.00
|
0.75(a)
|
28,489
|
Class C
|
—
|
1.00(b)
|
494
|
Class V
|
4.75
|
0.50 - 1.00(c)
|
255
|
(a)
|
This charge is imposed on certain investments of $500,000 or more if redeemed within 12 months after purchase.
|
(b)
|
This charge applies to redemptions within 12 months after purchase, with certain limited exceptions.
|
(c)
|
This charge is imposed on certain investments of between $1 million and $50 million redeemed within 18 months after purchase, as follows: 1.00% if redeemed within 12 months after
purchase, and 0.50% if redeemed more than 12, but less than 18, months after purchase, with certain limited exceptions.
|
The Fund’s other share
classes are not subject to sales charges.
Expenses waived/reimbursed by the
Investment Manager and its affiliates
The Investment Manager and certain
of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole
discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s
custodian, do not exceed the following annual rate(s) as a percentage of the class’ average daily net assets:
|
Fee rate(s) contractual
through
February 29, 2020
|
Class A
|
0.76%
|
Advisor Class
|
0.56
|
Class C
|
1.41
|
Institutional Class
|
0.56
|
Institutional 2 Class
|
0.49
|
Institutional 3 Class
|
0.44
|
Class V
|
0.71
|
Under the agreement governing
these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes
(including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and
brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed
money, interest, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be modified or amended only with approval from
the Investment Manager, certain of its affiliates and the Fund. Any fees waived and/or expenses reimbursed under the expense reimbursement arrangements described above are not recoverable by the Investment Manager or
its affiliates in future periods.
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Columbia Intermediate Municipal Bond Fund | Annual Report 2019
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Notes to Financial Statements (continued)
October 31, 2019
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 October 31, 2019, these
differences were primarily due to differing treatment for trustees’ deferred compensation, tax straddles and distributions. 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 Fund did not have any permanent
differences; therefore, no reclassifications were made.
The tax character of distributions
paid during the years indicated was as follows:
Year Ended October 31, 2019
|
Year Ended October 31, 2018
|
Ordinary
income ($)
|
Tax-exempt
income ($)
|
Long-term
capital gains ($)
|
Total ($)
|
Ordinary
income ($)
|
Tax-exempt
income ($)
|
Long-term
capital gains ($)
|
Total ($)
|
164,305
|
40,447,363
|
601,113
|
41,212,781
|
199,455
|
53,469,007
|
—
|
53,668,462
|
Short-term capital gain
distributions, if any, are considered ordinary income distributions for tax purposes.
At October 31, 2019, the components
of distributable earnings on a tax basis were as follows:
Undistributed
ordinary income ($)
|
Undistributed tax-
exempt income ($)
|
Undistributed
long-term
capital gains ($)
|
Capital loss
carryforwards ($)
|
Net unrealized
appreciation ($)
|
—
|
6,118,464
|
4,879,276
|
—
|
89,024,192
|
At October 31, 2019, 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) ($)
|
Net unrealized
appreciation ($)
|
1,151,431,765
|
90,411,567
|
(1,387,375)
|
89,024,192
|
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 $177,606,465 and $452,485,042, respectively, for the year ended October 31, 2019. The amount of purchase and
sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Interfund
lending
Pursuant to an exemptive order
granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and,
except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject
to certain restrictions.
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
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37
|
Notes to Financial Statements (continued)
October 31, 2019
Interfund loans are subject to the
risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject
to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund did not borrow or lend
money under the Interfund Program during the year ended October 31, 2019.
Note 7. Line of credit
The Fund has access to a
revolving credit facility with a syndicate of banks led by Citibank, N.A., HSBC Bank USA, N.A. and JPMorgan Chase Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for
other temporary or emergency purposes. The credit facility, which is a collective agreement between the Fund and certain other funds managed by the Investment Manager or an affiliated investment manager, severally and
not jointly, permits collective borrowings up to $1 billion. Interest is charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the
one-month LIBOR rate and (iii) the overnight bank funding rate, plus in each case, 1.00%. Each borrowing under the credit facility matures no later than 60 days after the date of borrowing. The Fund also pays a
commitment fee equal to its pro rata share of the unused amount of the credit facility at a rate of 0.15% per annum. The commitment fee is included in other expenses in the Statement of Operations. This agreement
expires annually in December unless extended or renewed.
For the year ended October 31,
2019, the Fund’s borrowing activity was as follows:
Average loan
balance ($)
|
Weighted average
interest rate (%)
|
Days
outstanding
|
4,300,000
|
3.38
|
1
|
Interest expense incurred by the
Fund is recorded as a line of credit interest expense in the Statement of Operations. The Fund had no outstanding borrowings at October 31, 2019.
Note 8. Significant
risks
Credit risk
Credit risk is the risk that the
value of debt securities in the Fund’s portfolio may decline because the issuer defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations,
such as making payments to the Fund when due. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. Lower rated or unrated debt instruments held by the Fund may
present increased credit risk as compared to higher-rated debt instruments.
Interest rate risk
Interest rate risk is the risk of
losses attributable to changes in interest rates. In general, if prevailing interest rates rise, the values of debt securities tend to fall, and if interest rates fall, the values of debt securities tend to rise.
Actions by governments and central banking authorities can result in increases in interest rates. Increasing interest rates may negatively affect the value of debt securities held by the Fund, resulting in a negative
impact on the Fund’s performance and net asset value per share. In general, the longer the maturity or duration of a debt security, the greater its sensitivity to changes in interest rates.
Liquidity risk
Liquidity risk is the risk
associated with a lack of marketability of investments which may make it difficult to sell the investment at a desirable time or price. Changing regulatory, market or other conditions or environments (for example, the
interest rate or credit environments) may adversely affect the liquidity of the Fund’s investments. The Fund may have to accept a lower selling price for the holding, sell other investments, or forego another,
more appealing investment opportunity. Generally, the less liquid the market at the time the Fund sells a portfolio investment, the greater the risk of loss or decline of value to the Fund. A less liquid market can
lead to an increase in Fund redemptions, which may negatively impact Fund performance and net asset value per share, including, for example, if the Fund is forced to sell securities in a down market.
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Columbia Intermediate Municipal Bond Fund | Annual Report 2019
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Notes to Financial Statements (continued)
October 31, 2019
Municipal securities risk
Securities issued by a particular
state and its instrumentalities are subject to the risk of unfavorable developments in such state. A municipal security can be significantly affected by adverse tax, legislative, regulatory, demographic or political
changes as well as changes in a particular state’s (state and its instrumentalities’) financial, economic or other condition and prospects.
Shareholder concentration risk
At October 31, 2019, one
unaffiliated shareholder of record owned 68.4% of the outstanding shares of the Fund in one or more accounts. The Fund has no knowledge about whether any portion of those shares was owned beneficially. Subscription
and redemption activity by concentrated accounts may have a significant effect on the operations of the Fund. In the case of a large redemption, the Fund may be forced to sell investments at inopportune times,
including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of less liquid positions. Large redemptions could result in decreased economies of scale and increased operating
expenses for non-redeeming Fund shareholders.
Note 9. Subsequent
events
Management has evaluated the
events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 10. Information
regarding pending and settled legal proceedings
Ameriprise Financial and certain
of its affiliates have historically been involved in a number of legal, arbitration and regulatory proceedings, including routine litigation, class actions, and governmental actions, concerning matters arising in
connection with the conduct of their business activities. Ameriprise Financial believes that the Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject
of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with
the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and regulatory matters that relate to
Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that
these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe
proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to
uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines,
penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial.
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
39
|
Report of Independent Registered Public
Accounting Firm
To the Board of Trustees of Columbia
Funds Series Trust I and Shareholders of Columbia Intermediate Municipal Bond Fund
Opinion on the Financial
Statements
We have audited the accompanying
statement of assets and liabilities, including the portfolio of investments, of Columbia Intermediate Municipal Bond Fund (one of the funds constituting Columbia Funds Series Trust I, hereafter referred to as the
"Fund") as of October 31, 2019, the related statement of operations for the year ended October 31, 2019, the statement of changes in net assets for each of the two years in the period ended October 31, 2019, including
the related notes, and the financial highlights for each of the periods indicated therein (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 October 31, 2019, 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
October 31, 2019 and the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the
responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of
the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these
financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud.
Our audits included performing
procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test
basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating
the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2019 by correspondence with the custodian and brokers; when replies were not received
from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Minneapolis, Minnesota
December 20, 2019
We have served as the auditor of
one or more investment companies within the Columbia Funds Complex since 1977.
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Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
Federal Income Tax
Information
(Unaudited)
The Fund hereby designates the
following tax attributes for the fiscal year ended October 31, 2019. Shareholders will be notified in early 2020 of the amounts for use in preparing 2019 income tax returns.
Capital
gain
dividend
|
Exempt-
interest
dividends
|
$5,149,565
|
99.60%
|
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.
Exempt-interest dividends. The
percentage of net investment income distributed during the fiscal year that qualifies as exempt-interest dividends for federal income tax purposes.
TRUSTEES AND
OFFICERS
The Board oversees the Fund’s
operations and appoints 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 Trustees 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. The year set forth beneath Length of Service
in the table below is the year in which the Trustee was first appointed or elected as Trustee to any Fund currently in the Columbia Funds Complex or a predecessor thereof. Under current Board policy, members serve
terms of indefinite duration.
Independent trustees
Name, address, year of birth
|
Position held with the Trust and length of service
|
Principal occupation(s) during the past five years and other relevant professional experience
|
Number of Funds in the Columbia Fund Complex overseen
|
Other directorships held by Trustee during the past five years
|
Janet Langford Carrig
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1957
|
Trustee
1996
|
Senior Vice President, General Counsel and Corporate Secretary, ConocoPhillips (independent energy company), September 2007-October 2018
|
71
|
Director, EQT Corporation (natural gas producer)
|
Douglas A. Hacker
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1955
|
Trustee and Chairman of the Board
1996
|
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
|
71
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Director, Spartan Nash Company (food distributor); Director, Aircastle Limited (aircraft leasing); 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
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1956
|
Trustee
2011
|
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
|
71
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None
|
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
41
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TRUSTEES AND OFFICERS (continued)
Independent trustees (continued)
Name, address, year of birth
|
Position held with the Trust and length of service
|
Principal occupation(s) during the past five years and other relevant professional experience
|
Number of Funds in the Columbia Fund Complex overseen
|
Other directorships held by Trustee during the past five years
|
David M. Moffett
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1952
|
Trustee
2011
|
Retired. Consultant to Bridgewater and Associates
|
71
|
Director, CSX Corporation (transportation suppliers); Director, Genworth Financial, Inc. (financial and insurance products and services);
Director, PayPal Holdings Inc. (payment and data processing services); Trustee, University of Oklahoma Foundation; former Director, eBay Inc. (online trading community), 2007-2015; and former Director, CIT Bank, CIT
Group Inc. (commercial and consumer finance), 2010-2016
|
John J. Neuhauser
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1943
|
Trustee
1984
|
President, Saint Michael’s College, August 2007-June 2018; Director or Trustee of several non-profit organizations, including University
of Vermont Medical Center; Academic Vice President and Dean of Faculties, Boston College, August 1999-October 2005; University Professor, Boston College, November 2005-August 2007
|
71
|
Director, Liberty All-Star Equity Fund and Liberty All- Star Growth Fund (closed-end funds)
|
Patrick J. Simpson
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1944
|
Trustee
2000
|
Of Counsel, Perkins Coie LLP (law firm) since 2015; Partner, Perkins Coie LLP, 1988-2014
|
71
|
Former Director, M Fund, Inc. (M Funds mutual fund family), July 2018-July 2019
|
Consultants to the Independent
Trustees*
Name, address, year of birth
|
Position held with the Trust 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
|
J. Kevin Connaughton
c/o Columbia
Management Investment
Advisers, LLC,
225 Franklin Street
Mail Drop BX32 05228,
Boston, MA 02110
1964
|
Independent Trustee Consultant
2016
|
Independent Trustee Consultant, Columbia Funds since March 2016; Adjunct Professor of Finance, Bentley
University since November 2017; Managing Director and General Manager of Mutual Fund Products, Columbia Management Investment Advisers, LLC, May 2010-February 2015; President, Columbia Funds, 2009-2015; and senior
officer of Columbia Funds and affiliated funds, 2003-2015
|
71
|
Director, The Autism Project since March 2015; former Trustee, New Century Portfolios, March 2015-December 2017; formerly on
Board of Governors, Gateway Healthcare, January 2016 – December 2017
|
42
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Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
TRUSTEES AND OFFICERS (continued)
Consultants to the Independent Trustees* (continued)
Name, address, year of birth
|
Position held with the Trust 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
|
Olive Darragh
c/o Columbia
Management Investment
Advisers, LLC,
225 Franklin Street,
Mail Drop BX32 05228,
Boston, MA 02110
1962
|
Independent Trustee Consultant 2019
|
Independent Trustee Consultant, Columbia Funds since June 2019; Managing Director of Darragh Inc. (a strategy and talent management consulting
firm) since 2010; Founder and CEO, Zolio (an investment management talent identification platform) since 2004; Partner, Tudor Investments, 2004-2010; Senior Partner, McKinsey & Company, 2001-2004
|
71
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Director, University of Edinburgh Business School; former Director, Boston Public Library Foundation
|
Natalie A. Trunow
c/o Columbia
Management Investment
Advisers, LLC,
225 Franklin Street
Mail Drop BX32 05228,
Boston, MA 02110
1967
|
Independent Trustee Consultant
2016
|
Independent Trustee Consultant, Columbia Funds since September 2016; Chief Executive Officer, Millennial
Portfolio Solutions LLC (asset management and consulting services) since January 2016; Director of Investments, Casey Family Programs, April 2016-September 2016; Senior Vice President and Chief Investment Officer,
Calvert Investments, August 2008-January 2016; Section Head and Portfolio Manager, General Motors Asset Management, June 1997-August 2008
|
71
|
Director, Health Services for Children with Special Needs, Inc.; Director, Consumer Credit Counseling Services (formerly
Guidewell Financial Solutions)
|
*
|
J. Kevin Connaughton was appointed consultant to the Independent Trustees effective March 1, 2016. Olive Darragh was appointed consultant to the Independent Trustees effective June
10, 2019. Natalie A. Trunow was appointed consultant to the Independent Trustees effective September 1, 2016. Shareholders of the Funds are expected to be asked to elect each of Mr. Connaughton, Ms. Darragh and Ms.
Trunow as a Trustee at a future shareholder meeting.
|
Interested trustee affiliated with
Investment Manager*
Name, address, year of birth
|
Position held with the Trust 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
|
William F. Truscott
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
1960
|
Trustee
2012
|
Chairman of the Board and President, Columbia Management Investment Advisers, LLC since May 2010 and
February 2012, respectively; Chief Executive Officer, Global Asset Management, Ameriprise Financial, Inc. since September 2012 (previously Chief Executive Officer, U.S. Asset Management & President, Annuities, May
2010-September 2012); Director and Chief Executive Officer, Columbia Management Investment Distributors, Inc. since May 2010 and February 2012, respectively; Chairman of the Board and Chief Executive Officer,
RiverSource Distributors, Inc. since 2006; Director, Threadneedle Asset Management Holdings, SARL since 2014; President and Chief Executive Officer, Ameriprise Certificate Company, 2006-August 2012
|
192
|
Chairman of the Board, Columbia Management Investment Advisers, LLC since May 2010; Director, Columbia Management Investment
Distributors, Inc. since May 2010; former Director, Ameriprise Certificate Company, August 2006 - January 2013
|
*
|
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, visiting columbiathreadneedleus.com/investor/ or contacting your
financial intermediary.
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
43
|
TRUSTEES AND OFFICERS (continued)
The Board has appointed 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, including principal occupations during the past five years, although their specific titles may have varied over the
period. In addition to Mr. Truscott, who is Senior Vice President, 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
|
Christopher O. Petersen
5228 Ameriprise
Financial Center
Minneapolis, MN 55474
Born 1970
|
President and Principal Executive Officer (2015)
|
Vice President and Lead Chief Counsel, Ameriprise Financial, Inc. since January 2015 (previously Vice President and Chief Counsel, January
2010 - December 2014); officer of Columbia Funds and affiliated funds since 2007.
|
Michael G. Clarke
225 Franklin Street
Boston, MA 02110
Born 1969
|
Chief Financial Officer (Principal Financial Officer) (2009) and Senior Vice President (2019)
|
Vice President, Head of North American Operations, and Co-Head of Global Operations, Columbia Management Investment Advisers, LLC, since June
2019 (previously Vice President – Accounting and Tax, May 2010 – May 2019); senior officer of Columbia Funds and affiliated funds since 2002 (previously Treasurer and Chief Accounting Officer, January 2009
- January 2019 and December 2015 - January 2019, respectively).
|
Joseph Beranek
5890 Ameriprise
Financial Center
Minneapolis, MN 55474
Born 1965
|
Treasurer and Chief Accounting Officer (Principal Accounting Officer) (2019)
|
Vice President — Mutual Fund Accounting and Financial Reporting, Columbia Management Investment Advisers, LLC, since December 2018 and
March 2017, respectively (previously Vice President — Pricing and Corporate Actions, May 2010 - March 2017).
|
Paul B. Goucher
485 Lexington Avenue
New York, NY 10017
Born 1968
|
Senior Vice President (2011) and Assistant Secretary (2008)
|
Senior Vice President and Assistant General Counsel, Ameriprise Financial, Inc. since January 2017 (previously Vice President and Lead Chief
Counsel, November 2008 - January 2017 and January 2013 - January 2017, respectively); Vice President, Chief Legal Officer and Assistant Secretary, Columbia Management Investment Advisers, LLC since March 2015
(previously Vice President and Assistant Secretary, May 2010 – March 2015).
|
Thomas P. McGuire
225 Franklin Street
Boston, MA 02110
Born 1972
|
Senior Vice President and Chief Compliance Officer (2012)
|
Vice President — Asset Management Compliance, Ameriprise Financial, Inc., since May 2010; Chief Compliance Officer, Ameriprise
Certificate Company since September 2010.
|
Colin Moore
225 Franklin Street
Boston, MA 02110
Born 1958
|
Senior Vice President (2010)
|
Executive Vice President and Global Chief Investment Officer, Ameriprise Financial, Inc., since July 2013; Executive Vice President and Global
Chief Investment Officer, Columbia Management Investment Advisers, LLC since July 2013.
|
Ryan C. Larrenaga
225 Franklin Street
Boston, MA 02110
Born 1970
|
Senior Vice President (2017), Chief Legal Officer (2017), and Secretary (2015)
|
Vice President and Chief Counsel, Ameriprise Financial, Inc. since August 2018 (previously Vice President and Group Counsel, August 2011 -
August 2018); officer of Columbia Funds and affiliated funds since 2005.
|
Michael E. DeFao
225 Franklin Street
Boston, MA 02110
Born 1968
|
Vice President (2011) and Assistant Secretary (2010)
|
Vice President and Chief Counsel, Ameriprise Financial, Inc. since May 2010.
|
Lyn Kephart-Strong
5228 Ameriprise
Financial Center
Minneapolis, MN 55474
Born 1960
|
Vice President (2015)
|
President, Columbia Management Investment Services Corp. since October 2014; Vice President & Resolution Officer,
Ameriprise Trust Company since August 2009.
|
44
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Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
Board Consideration
and Approval of Management
Agreement
On June 12, 2019, the Board of
Trustees (the Board) and the Trustees who are not interested persons (as defined in the Investment Company Act of 1940) (the Independent Trustees) of Columbia Funds Series Trust I (the Trust) unanimously approved the
continuation of the Management Agreement (the Management Agreement) with Columbia Management Investment Advisers, LLC (the Investment Manager) with respect to Columbia Intermediate Municipal Bond Fund (the Fund)
(formerly, Columbia AMT-Free Intermediate Muni Bond Fund), a series of the Trust. As detailed below, the Board’s Advisory Fees and Expenses Committee (the Committee) and the Board met on multiple occasions to
review and discuss, among themselves, with the management team of the Investment Manager and with an independent fee consultant, materials provided by the Investment Manager, the independent fee consultant and others
before determining to approve the continuation of the Management Agreement.
In connection with their
deliberations regarding the continuation of the Management Agreement, the Committee and the Board evaluated materials requested from the Investment Manager regarding the Fund and the Management Agreement, and
discussed these materials with representatives of the Investment Manager at Committee meetings held on March 5, 2019, April 25, 2019 and June 11, 2019 and at Board meetings held on March 6, 2019 and June 12, 2019. In
addition, the Board and its various committees consider matters bearing on the Management Agreement at other meetings throughout the year and in prior years and meet regularly with senior management of the Trust and
the Investment Manager. Through the Board’s Investment Oversight Committees, Trustees also meet with selected portfolio managers of the funds the Trustees oversee and with other investment personnel at various
times throughout the year. The Committee and the Board also consulted with the independent fee consultant, Fund counsel and the Independent Trustees’ independent legal counsel, who advised on various matters
with respect to the Committee’s and the Board’s considerations and otherwise assisted the Committee and the Board in their deliberations. On June 11, 2019, the Committee recommended that the Board approve
the continuation of the Management Agreement. On June 12, 2019, the Board, including the Independent Trustees, voting separately, unanimously approved the continuation of the Management Agreement for the Fund.
The Committee and the Board
considered all information that they, their legal counsel or the Investment Manager believed reasonably necessary to evaluate and to determine whether to recommend for approval or approve the continuation of the
Management Agreement. The information and factors considered by the Committee and the Board in recommending for approval or approving the continuation of the Management Agreement for the Fund included the
following:
•
|
Information on the investment performance of the Fund relative to the performance of a group of mutual funds determined to be comparable to the Fund by an independent third-party data provider, as well as
performance relative to benchmarks;
|
•
|
Information on the Fund’s management fees and total expenses, including information comparing the Fund’s expenses to those of a group of comparable mutual funds, as determined by the independent
third-party data provider;
|
•
|
The Investment Manager’s agreement to contractually limit or cap total operating expenses for the Fund through February 29, 2020 so that total operating expenses (excluding certain fees and expenses, such as
transaction costs and certain other investment related expenses, interest, taxes, acquired fund fees and expenses, and infrequent and/or unusual expenses) would not exceed a specified annual rate, as a percentage of
the Fund’s net assets;
|
•
|
The terms and conditions of the Management Agreement;
|
•
|
The current and proposed terms and conditions of other agreements and arrangements with affiliates of the Investment Manager relating to the operations of the Fund, including agreements with respect to the provision
of distribution, transfer agency and shareholder services to the Fund;
|
•
|
Descriptions of various functions performed by the Investment Manager under the Management Agreement, including portfolio management and portfolio trading practices;
|
•
|
Information regarding the management fees of similarly-managed portfolios of other clients of the Investment Manager, including institutional accounts and collective trusts;
|
•
|
Information regarding the reputation, regulatory history and resources of the Investment Manager, including information regarding senior management, portfolio managers and other personnel;
|
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
45
|
Board Consideration and Approval of
Management
Agreement (continued)
•
|
Information regarding the capabilities of the Investment Manager with respect to compliance monitoring services, including an assessment of the Investment Manager’s compliance system by the Fund’s Chief
Compliance Officer; and
|
•
|
The profitability to the Investment Manager and its affiliates from their relationships with the Fund.
|
Nature, extent and quality of
services provided under the Management Agreement
The Committee and the Board
considered the nature, extent and quality of services provided to the Fund by the Investment Manager and its affiliates under the Management Agreement and under separate agreements for the provision of transfer agency
and shareholder services, and the resources dedicated to the Fund and the other Columbia Funds by the Investment Manager and its affiliates. The Committee and the Board considered, among other things, the Investment
Manager’s ability to attract, motivate and retain highly qualified research, advisory and supervisory investment professionals (including compensation programs for personnel involved in fund management,
reputation and other attributes), the portfolio management services provided by those investment professionals, and the quality of the Investment Manager’s investment research capabilities and trade execution
services. The Committee and the Board also considered the potential benefits to shareholders of investing in a mutual fund that is part of a fund complex offering exposure to a variety of asset classes and investment
disciplines and providing a variety of fund and shareholder services.
The Committee and the Board also
considered the professional experience and qualifications of the senior personnel of the Investment Manager, which included consideration of the Investment Manager’s experience with funds using an investment
strategy similar to that used by the Investment Manager for the Fund. The Committee and the Board noted the compliance programs of and the compliance-related resources provided to the Fund by the Investment Manager
and its affiliates and the resources dedicated by the Investment Manager and its affiliates to risk management, and considered the Investment Manager’s ability to provide administrative services to the Fund and
coordinate the activities of the Fund’s other service providers. After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the
nature, extent and quality of the services provided to the Fund under the Management Agreement supported the continuation of the Management Agreement.
Investment performance
The Committee and the Board
reviewed information about the performance of the Fund over various time periods, including performance information relative to benchmarks, information that compared the performance of the Fund to the performance of a
group of comparable mutual funds as determined by the independent third-party data provider, and information and analysis provided by the independent fee consultant. The Committee and the Board also reviewed a
description of the third party’s methodology for identifying the Fund’s peer groups for purposes of performance and expense comparisons. Although the Fund’s performance lagged that of a relevant peer
group for certain (although not necessarily all) periods, the Committee and the Board concluded that other factors relevant to performance were sufficient, in light of other considerations, to support continuation of
the Management Agreement. Those factors included one or more of the following: (i) that the Fund’s performance, although lagging in certain recent periods, was stronger over the longer term; (ii) that the
underperformance was attributable, to a significant extent, to investment decisions that were reasonable and consistent with the Fund’s investment strategy and policies and that the Fund was performing within a
reasonable range of expectations, given those investment decisions, market conditions and the Fund’s investment strategy; (iii) that the Fund’s performance was competitive when compared to other relevant
performance benchmarks or peer groups; and (iv) that the Investment Manager had taken or was taking steps designed to help improve the Fund’s investment performance, including, but not limited to, replacing
portfolio managers, enhancing the resources supporting the portfolio managers, or modifying investment strategies.
The Committee and the Board noted
that, through December 31, 2018, the Fund’s performance was in the eightieth, sixty-first and forty-fifth percentile (where the best performance would be in the first percentile) of its category selected by the
independent third-party data provider for the purposes of performance comparisons for the one-, three- and five-year periods, respectively.
46
|
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
Board Consideration and Approval of
Management
Agreement (continued)
The Committee and the Board also considered the
Investment Manager’s performance and reputation generally, the Investment Manager’s historical responsiveness to Board concerns about performance, and the Investment Manager’s willingness to take
steps intended to improve performance. After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the performance of the Fund and the
Investment Manager was sufficient, in light of other considerations, to support the continuation of the Management Agreement.
Investment management fee rates
and other expenses
The Committee and the Board
considered the management fees charged to the Fund under the Management Agreement as well as the total expenses incurred by the Fund. In assessing the reasonableness of the fees under the Management Agreement, the
Committee and the Board considered, among other information, the Fund’s total expense ratio as a percentage of average daily net assets. The Committee and the Board considered data provided by the independent
third-party data provider and the independent fee consultant. The Committee and the Board noted that, as of December 31, 2018, the Fund’s actual management fee and net total expense ratio were ranked in the
third and fourth quintiles, respectively, (where the lowest fees and expenses would be in the first quintile) against the Fund’s expense universe as determined by the independent third-party data provider for
purposes of expense comparison. The Committee and the Board also took into account the fee waiver and expense limitation arrangements agreed to by the Investment Manager, as noted above.
The Committee and the Board also
received and considered information about the management fees charged by the Investment Manager to institutional accounts. In considering the fees charged to those accounts, the Committee and the Board took into
account, among other things, the Investment Manager’s representations about the differences between managing mutual funds as compared to other types of accounts, including differences in the services provided,
differences in the risk profile of such business for the Investment Manager and the additional resources required to manage mutual funds effectively. The Committee and the Board also received and considered
information about the fees charged by the Investment Manager for sub-advisory services it provides to comparable unaffiliated funds. In evaluating the Fund’s management fees, the Committee and the Board also
took into account the demands, complexity and quality of the investment management of the Fund.
After reviewing these and related
factors, the Committee and the Board concluded, within the context of their overall conclusions, that the management fee rates and expenses of the Fund, in light of other considerations, supported the continuation of
the Management Agreement.
Costs of services provided and
profitability
The Committee and the Board also
took note of the costs the Investment Manager and its affiliates incur in connection with the services provided and the profitability to the Investment Manager and its affiliates from their relationships with the
Fund, and the efforts undertaken by the Investment Manager and its affiliates to manage efficiently their costs to provide such services.
The Committee and the Board also
considered the compensation directly or indirectly received by the Investment Manager’s affiliates in connection with their relationships with the Fund. The Committee and the Board reviewed information provided
by management as to the profitability to the Investment Manager and its affiliates of their relationships with the Fund, information about the allocation of expenses used to calculate profitability, and comparisons of
profitability levels realized in 2018 to profitability levels realized in 2017. When reviewing profitability, the Committee and the Board also considered court cases in which adviser profitability was an issue in
whole or in part, the performance of similarly managed funds, the performance of the Fund, and the expense ratio of the Fund. In addition, the Committee and the Board considered information provided by the Investment
Manager regarding the Investment Manager’s financial condition and comparing its profitability to that of other asset management firms that are, or are subsidiaries of, publicly traded companies. In this regard,
the Committee and the Board also considered data provided by the independent fee consultant.
After reviewing these and related
factors, the Committee and the Board concluded, within the context of their overall conclusions, that the costs of services provided and the profitability to the Investment Manager and its affiliates from their
relationships with the Fund supported the continuation of the Management Agreement.
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
47
|
Board Consideration and Approval of
Management
Agreement (continued)
Economies of scale
The Committee and the Board
considered the potential existence of economies of scale in the provision by the Investment Manager of services to the Fund, to groups of related funds, and to the Investment Manager’s investment advisory
clients as a whole, and whether those economies of scale were shared with the Fund through breakpoints in investment management fees or other means, such as expense limitation arrangements and additional investments
by the Investment Manager in investment, trading, compliance and other resources. The Committee and the Board noted that the management fee schedules for the Fund contained breakpoints that would reduce the fee rate
on assets above specified threshold levels.
In considering these matters, the
Committee and the Board also considered the costs of the services provided and the profitability to the Investment Manager and its affiliates from their relationships with the Fund, as noted above. After reviewing
these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the extent to which any economies of scale were expected to be shared with the Fund supported the
continuation of the Management Agreement.
Other benefits to the Investment
Manager
The Committee and the Board
received and considered information regarding “fall-out” or ancillary benefits received by the Investment Manager and its affiliates as a result of their relationships with the Fund, such as the engagement
of the Investment Manager’s affiliates to provide distribution, transfer agency and shareholder services to the Fund. In this regard, among other matters, the Committee and the Board considered that the
Fund’s distributor retains a portion of the distribution fees from the Fund and receives a portion of the sales charges on sales or redemptions of certain classes of shares of the Fund. The Committee and the
Board also considered the benefits of research made available to the Investment Manager by reason of brokerage commissions generated by the Fund’s securities transactions, and reviewed information about the
Investment Manager’s practices with respect to considering brokerage and research services when allocating portfolio transactions. In this connection, the Board also noted that the amount of research made
available to the Investment Manager by reason of brokerage commissions had been declining over time, and may decline further. The Committee and the Board recognized that the Investment Manager’s profitability
would be somewhat lower without these benefits.
Conclusion
The Committee and the Board
reviewed all of the above considerations in reaching their decisions to recommend or approve the continuation of the Management Agreement. In their deliberations, the Trustees did not identify any particular
information that was all-important or controlling, and individual Trustees may have attributed different weights to the various factors. Based on their evaluation of all factors that they deemed to be material,
including those factors described above, and assisted by the advice of independent legal counsel, the Board, including the Independent Trustees, voting separately, unanimously approved the continuation of the
Management Agreement.
48
|
Columbia Intermediate Municipal Bond Fund | Annual Report 2019
|
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[THIS PAGE INTENTIONALLY LEFT BLANK]
Columbia Intermediate Municipal Bond Fund
P.O. Box 219104
Kansas City, MO 64121-9104
Please read and consider the
investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus and summary prospectus, which contains this and other important information about the Fund, go to
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments
(Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2019 Columbia Management Investment
Advisers, LLC.
columbiathreadneedleus.com/investor/
Annual Report
October 31, 2019
Columbia
Massachusetts Intermediate Municipal Bond Fund
Beginning on January 1, 2021, as
permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports like this one will no longer be sent by mail, unless you
specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (columbiathreadneedleus.com/investor/), and each time a report is posted you will be notified
by mail and provided with a website address to access the report.
If you have already elected to
receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically
at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, for Fund shares held directly with the Fund, by calling 800.345.6611 or by enrolling in “eDelivery” by logging
into your account at columbiathreadneedleus.com/investor/.
You may elect to receive all future
reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue receiving paper copies of your shareholder reports. If you
invest directly with the Fund, you can call 800.345.6611 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive paper reports will apply to all Columbia
Funds held in your account if you invest through a financial intermediary or all Columbia Funds held with the fund complex if you invest directly with the Fund.
Not FDIC Insured • No bank
guarantee • May lose value
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Columbia Massachusetts Intermediate
Municipal Bond Fund (the Fund) mails one shareholder report to each shareholder address, unless such shareholder elected to receive shareholder reports from the Fund electronically. If you would like more than one
report, please call shareholder services at 800.345.6611 and additional reports will be sent to you.
Proxy voting policies and
procedures
The policy of the Board of Trustees
is to vote the proxies of the companies in which the Fund holds investments consistent with the procedures as stated in the Statement of Additional Information (SAI). You may obtain a copy of the SAI without charge by
calling 800.345.6611; contacting your financial intermediary; visiting columbiathreadneedleus.com/investor/; or searching the website of the Securities and Exchange Commission (SEC) at sec.gov. Information regarding
how the Fund voted proxies relating to portfolio securities is filed with the SEC by August 31st for the most recent 12-month period ending June 30th of that year, and is available without charge by visiting
columbiathreadneedleus.com/investor/, or searching the website of the SEC at sec.gov.
Quarterly schedule of
investments
The Fund files a complete schedule
of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT, and for reporting periods ended prior to March 31, 2019, on Form N-Q. The Fund’s Form N-Q and 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-Q or Form N-PORT, can also be obtained without charge, upon request, by calling
800.345.6611.
Additional Fund information
For more information about the
Fund, please visit columbiathreadneedleus.com/investor/ or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 7 p.m. Eastern time.
Fund investment manager
Columbia Management Investment Advisers, LLC (the
Investment Manager)
225 Franklin Street
Boston, MA 02110
Fund distributor
Columbia Management Investment Distributors,
Inc.
225 Franklin Street
Boston, MA 02110
Fund transfer agent
Columbia Management Investment Services Corp.
P.O. Box 219104
Kansas City, MO 64121-9104
Columbia Massachusetts Intermediate Municipal Bond
Fund | Annual Report 2019
Investment objective
The Fund
seeks as high a level of current interest income exempt from federal income tax and, to the extent possible, from Massachusetts individual income tax, as is consistent with relative stability of principal.
Portfolio management
Paul Fuchs, CFA
Lead Portfolio Manager
Managed Fund since 2012
Anders Myhran, CFA
Portfolio Manager
Managed Fund since May 2019
Deborah Vargo
Portfolio Manager
Managed Fund since 2017
Average annual total returns (%) (for the period ended October 31, 2019)
|
|
|
Inception
|
1 Year
|
5 Years
|
10 Years
|
Class A
|
Excluding sales charges
|
12/09/02
|
7.92
|
2.37
|
3.11
|
|
Including sales charges
|
|
4.73
|
1.75
|
2.79
|
Advisor Class*
|
03/19/13
|
8.19
|
2.61
|
3.37
|
Class C
|
Excluding sales charges
|
12/09/02
|
7.44
|
1.89
|
2.66
|
|
Including sales charges
|
|
6.44
|
1.89
|
2.66
|
Institutional Class
|
06/14/93
|
8.19
|
2.61
|
3.37
|
Institutional 2 Class*
|
03/01/16
|
8.25
|
2.64
|
3.38
|
Institutional 3 Class*
|
03/01/17
|
8.28
|
2.66
|
3.40
|
Class V
|
Excluding sales charges
|
06/26/00
|
8.03
|
2.45
|
3.21
|
|
Including sales charges
|
|
2.87
|
1.46
|
2.71
|
Bloomberg Barclays 3-15 Year Blend Municipal Bond Index
|
|
8.64
|
3.17
|
4.00
|
Returns for Class A shares are shown
with and without the maximum initial sales charge of 3.00%. Returns for Class C shares are shown with and without the 1.00% contingent deferred sales charge for the first year only. Returns for Class V shares are
shown with and without the maximum initial sales charge of 4.75%. The Fund’s other share classes are not subject to sales charges and have limited eligibility. Please see the Fund’s prospectus for details.
Performance for different share classes will vary based on differences in sales charges and fees associated with each share class. All results shown assume reinvestment of distributions during the period. Returns do
not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results reflect the effect of any fee waivers or reimbursements of Fund expenses by
Columbia Management Investment Advisers, LLC and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower.
The performance information shown
represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than
their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by contacting your financial
intermediary, visiting columbiathreadneedleus.com/investor/ or calling 800.345.6611.
*
|
The returns shown for periods prior to the share class inception date (including returns for the Life of the Fund, if shown, which are since Fund inception) include the returns of the Fund’s oldest share
class. These returns are adjusted to reflect any higher class-related operating expenses of the newer share classes, as applicable. Please visit
columbiathreadneedleus.com/investor/investment-products/mutual-funds/appended-performance for more information.
|
The Bloomberg Barclays 3–15
Year Blend Municipal Bond Index is an unmanaged index that tracks the performance of municipal bonds issued after December 31, 1990, with remaining maturities between 2 and 17 years and at least $7 million in
principal amount outstanding.
Indices are not available for
investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes or other expenses of investing. Securities in the Fund may not match those in an index.
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
3
|
Fund at a Glance (continued)
Performance of a hypothetical $10,000 investment (October 31, 2009 — October 31, 2019)
The chart above shows the change in
value of a hypothetical $10,000 investment in Class A shares of Columbia Massachusetts Intermediate Municipal Bond Fund during the stated time period, and does not reflect the deduction of taxes that a shareholder may
pay on Fund distributions or on the redemption of Fund shares.
Quality breakdown (%) (at October 31, 2019)
|
AAA rating
|
4.0
|
AA rating
|
45.3
|
A rating
|
28.0
|
BBB rating
|
19.5
|
BB rating
|
2.1
|
Not rated
|
1.1
|
Total
|
100.0
|
Percentages indicated are based
upon total fixed income investments.
Bond ratings apply to the underlying
holdings of the Fund and not the Fund itself and are divided into categories ranging from highest to lowest credit quality, determined by using the middle rating of Moody’s, S&P and Fitch, after dropping the
highest and lowest available ratings. When ratings are available from only two rating agencies, the lower rating is used. When a rating is available from only one rating agency, that rating is used. When a bond is not
rated by any rating agency, it is designated as “Not rated.” Credit quality ratings assigned by a rating agency are subjective opinions, not statements of fact, and are subject to change, including daily.
The ratings assigned by credit rating agencies are but one of the considerations that the Investment Manager and/or Fund’s subadviser incorporates into its credit analysis process, along with such other
issuer-specific factors as cash flows, capital structure and leverage ratios, ability to de-leverage (repay) through free cash flow, quality of management, market positioning and access to capital, as well as such
security-specific factors as the terms of the security (e.g., interest rate and time to maturity) and the amount and type of any collateral.
4
|
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
Manager Discussion of Fund Performance
During the 12-month period that
ended October 31, 2019, the Fund’s Class A shares returned 7.92% excluding sales charges. Institutional Class shares of the Fund returned 8.19%. By comparison, the Fund’s benchmark, the Bloomberg Barclays
3-15 Year Blend Municipal Bond Index, which is national in scope, returned 8.64%.
Market overview
Municipal bonds generated a
robust return over the 12 months that ended October 31, 2019. After experiencing poor performance throughout most of 2018, municipals began to rebound in early November 2018 thanks to the combination of slowing global
growth, volatility in higher risk assets, and expectations that the U.S. Federal Reserve (Fed) would adopt a more accommodative stance. In addition, various geopolitical factors — including the U.S.-China trade
dispute, Brexit negotiations, and the U.S. government shutdown — fueled a “flight to quality” into bonds.
The rally persisted into the New
Year, leading to the largest first-quarter gain for the tax-exempt market since 2014. The quarter was also the sixth-best for municipals in the past 30 years, thanks in part to the backdrop of slow global growth and
the increasingly accommodative policies of the world’s major central banks. Supply-and-demand factors were highly favorable, as well. Municipal bond mutual funds experienced record inflows, fueled by strong
demand resulting from the cap on state and local tax deductions in the Tax Cuts and Jobs Act of 2017. As of year-to-date September 30, 2019, municipal bond funds had taken in over $70 billion. At the same time,
new-issue supply was limited. Trends in the Treasury market were also supportive, as yields fell in anticipation of Fed rate cuts. Together, these developments resulted in positive municipal market performance during
the spring and summer.
In early September 2019, however,
the typical seasonal increase in supply, which was exacerbated by historically low costs for issuers, caused the rally to stall. Municipals suffered their first month of negative returns in 2019 as a result. The
market continued to trade in an uneven fashion through the end of October 2019, as the Fed indicated that additional rate cuts would be dependent on incoming economic data.
For the full year, lower quality
issues outpaced their higher rated counterparts as investors displayed a consistent willingness to move out the risk spectrum in search of higher yields. Long-term bonds strongly outperformed short-dated issues,
reflecting the trend in the U.S. Treasury market.
Massachusetts municipal bonds
underperformed
Massachusetts municipal bonds
finished slightly behind the national benchmark for the 12-month period. Relative to the benchmark, the state has both a longer average maturity and longer duration. (Duration is a measure of interest rate
sensitivity.) While these features helped performance, the market’s larger relative weighting in higher quality AA rated issues, which underperformed, offset the benefit.
Massachusetts’ economy
continued to outperform regional peers, driven by the strength in the technology and health care industries. High educational attainment and the presence of world-class universities and hospitals support the
state’s long-term economic stability despite an aging population and the high cost of living and doing business. Massachusetts has rebuilt its budget reserves since the 2008-2009 recession, with sizable deposits
in the 2018 and 2019 fiscal years that have brought the stabilization fund to about $3 billion, or nearly 10% of the state budget. The state has budgeted another $300 million deposit to the stabilization fund for the
2020 fiscal year. However, the state continues to face long-term challenges from the elevated fixed costs associated with high debt and legacy liabilities, including pensions.
Contributors and detractors
The Fund was modestly short in
duration throughout the year, meaning it had lower interest-rate sensitivity than the benchmark. This acted as a small drag on results given that yields fell significantly (as prices rose). The Fund was also hurt by
an overweight in bonds maturing in two years or less, including pre-refunded issues.
Conversely, the Fund’s
overweight in bonds maturing in 17 years and above made a positive contribution, as did its allocations to A and BBB rated debt. Holdings in hospital and education issues, the dominant revenue sectors in Massachusetts
and the two largest sector weightings in the Fund, further contributed to results.
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
5
|
Manager Discussion of Fund Performance (continued)
Fund positioning
Over the course of the period, we
lengthened the Fund’s duration and average maturity in an effort to increase the portfolio’s sensitivity to market movements. The shift in the Fed’s policy stance was the primary catalyst for this
decision. As part of this process, we reduced the portfolio’s holdings in bonds with maturities of two years and below. We had been holding an above-average weighting in this segment in response to the
Fed’s tightening cycle, but we saw less of a benefit in maintaining the position following the central bank’s pivot to a more accommodative posture. We also reduced the portfolio’s exposure to
shorter maturity, pre-refunded securities. We had been reluctant to move out of this area, as it supported the Fund’s distribution yield due to the fact that we purchased many of these bonds when rates were
higher. However, its total return potential appeared limited due to the low degree of possible price appreciation. Similarly, we decreased the portfolio’s weighting in bonds that are callable in 12 months or
less and that we believe will be refunded. We reinvested the proceeds of these sales into areas that we believe offer more income and total return potential.
The Fund’s universe of
allowable investments expanded to include bonds subject to the Alternative Minimum Tax (AMT). We made this shift after tax reform drastically reduced the number of taxpayers subject to the AMT. This change gives us a
wider opportunity to invest in bonds with higher income. We sought to capitalize on the broader mandate by adding positions in the AMT bonds of the Massachusetts Port Authority.
We continued to emphasize lower
rated investment-grade issues based on our view that there was a low probability of a recession in the coming year, but we remained selective in our new purchases. The holdings we added had an average rating of A+ and
an average maturity of 16 years, and our sales had an average maturity of two years.
The major stock indexes stood near
all-time highs at the close of the period, but fixed-income investors were displaying some caution with the yield on the 10-year note having risen from its September low. The Fed appeared to have concluded its
mini-easing cycle and was indicating it was unlikely to enact further cuts until it sees a meaningful uptick in inflation. In addition, market participants were struggling to assess the outlook for global growth and
tensions in Washington, as well as Brexit and the U.S.-China trade conflict. For our part, we remain on the lookout for the chance to use any volatility associated with these issues as a potential buying
opportunity.
Fixed-income securities present
issuer default risk. The Fund invests substantially in municipal securities and will be affected by tax, legislative, regulatory, demographic or political changes, as well as changes impacting a state’s financial, economic or other
conditions. A relatively small number of tax-exempt issuers may necessitate the Fund investing more heavily in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly.
The value of the Fund’s portfolio may be more volatile than a more geographically diversified fund. Prepayment and extension risk exists because the timing of payments on a loan, bond or other investment may accelerate when interest rates fall or decelerate when interest rates rise
which may reduce investment opportunities and potential returns. A rise in interest rates may result in a price decline of fixed-income instruments held by the fund, negatively impacting its performance and NAV. Falling rates may result in the Fund investing
in lower yielding debt instruments, lowering the Fund’s income and yield. These risks may be heightened for longer maturity and duration securities. Non-investment-grade (high-yield or junk) securities present greater price volatility and more risk to principal and income than higher rated securities. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. Federal and state tax rules apply to capital gain distributions and any gains or losses on sales. Income may be subject to state or local taxes. Liquidity risk is associated with the difficulty of selling underlying investments at a desirable time or price. See the Fund’s prospectus for more information on these and other
risks.
The views expressed in this report
reflect the current views of the respective parties. These views are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict, so actual outcomes and
results may differ significantly from the views expressed. These views are subject to change at any time based upon economic, market or other conditions and the respective parties disclaim any responsibility to update
such views. These views may not be relied on as investment advice and, because investment decisions for a Columbia fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf
of any particular Columbia fund. References to specific securities should not be construed as a recommendation or investment advice.
6
|
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
Understanding Your Fund’s
Expenses
(Unaudited)
As an investor, you incur two types
of costs. There are shareholder transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing fund costs, which generally include management fees,
distribution and/or service fees, and other fund expenses. The following information is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to help you compare these costs with
the ongoing costs of investing in other mutual funds.
Analyzing your Fund’s
expenses
To illustrate these ongoing
costs, we have provided examples and calculated the expenses paid by investors in each share class of the Fund during the period. The actual and hypothetical information in the table is based on an initial investment
of $1,000 at the beginning of the period indicated and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the
“Actual” column is calculated using the Fund’s actual operating expenses and total return for the period. You may use the Actual information, together with the amount invested, to estimate the
expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the results by the expenses paid during the period under
the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the
Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or
the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are
required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are
meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in
comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
May 1, 2019 — October 31, 2019
|
|
Account value at the
beginning of the
period ($)
|
Account value at the
end of the
period ($)
|
Expenses paid during
the period ($)
|
Fund’s annualized
expense ratio (%)
|
|
Actual
|
Hypothetical
|
Actual
|
Hypothetical
|
Actual
|
Hypothetical
|
Actual
|
Class A
|
1,000.00
|
1,000.00
|
1,031.90
|
1,021.17
|
4.10
|
4.08
|
0.80
|
Advisor Class
|
1,000.00
|
1,000.00
|
1,033.20
|
1,022.43
|
2.82
|
2.80
|
0.55
|
Class C
|
1,000.00
|
1,000.00
|
1,028.60
|
1,018.90
|
6.39
|
6.36
|
1.25
|
Institutional Class
|
1,000.00
|
1,000.00
|
1,033.20
|
1,022.43
|
2.82
|
2.80
|
0.55
|
Institutional 2 Class
|
1,000.00
|
1,000.00
|
1,032.50
|
1,022.74
|
2.51
|
2.50
|
0.49
|
Institutional 3 Class
|
1,000.00
|
1,000.00
|
1,033.70
|
1,022.99
|
2.26
|
2.24
|
0.44
|
Class V
|
1,000.00
|
1,000.00
|
1,032.40
|
1,021.68
|
3.59
|
3.57
|
0.70
|
Expenses paid during the period
are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period and then multiplied by the number of days in the Fund’s most recent fiscal
half year and divided by 365.
Expenses do not include fees and
expenses incurred indirectly by the Fund from its investment in underlying funds, including affiliated and non-affiliated pooled investment vehicles, such as mutual funds and exchange-traded funds.
Had Columbia Management Investment
Advisers, LLC and/or certain of its affiliates not waived/reimbursed certain fees and expenses, account value at the end of the period would have been reduced.
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
7
|
Portfolio of Investments
October 31, 2019
(Percentages represent value of
investments compared to net assets)
Investments in securities
Floating Rate Notes 0.1%
|
Issue Description
|
Effective
Yield
|
|
Principal
Amount ($)
|
Value ($)
|
Variable Rate Demand Notes 0.1%
|
Massachusetts Health & Educational Facilities Authority(a),(b)
|
Revenue Bonds
|
Tufts University
|
Series 2012N-2 (Wells Fargo Bank)
|
08/15/2034
|
1.200%
|
|
100,000
|
100,000
|
Total Floating Rate Notes
(Cost $100,000)
|
100,000
|
|
Municipal Bonds 97.2%
|
Issue Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value ($)
|
Airport 3.0%
|
Massachusetts Port Authority(c)
|
Refunding Revenue Bonds
|
BosFuel Project
|
Series 2019A AMT
|
07/01/2038
|
5.000%
|
|
1,000,000
|
1,217,340
|
Revenue Bonds
|
Series 2019C AMT
|
07/01/2035
|
5.000%
|
|
2,000,000
|
2,494,000
|
Massachusetts Port Authority
|
Refunding Revenue Bonds
|
Series 2014C
|
07/01/2031
|
5.000%
|
|
1,900,000
|
2,201,207
|
Revenue Bonds
|
Series 2015A
|
07/01/2026
|
5.000%
|
|
600,000
|
721,362
|
Total
|
6,633,909
|
Charter Schools 1.8%
|
Massachusetts Development Finance Agency
|
Refunding Revenue Bonds
|
Foxborough Regional Charter
|
Series 2017
|
07/01/2037
|
5.000%
|
|
1,800,000
|
2,051,442
|
International Charter School
|
Series 2015
|
04/15/2025
|
5.000%
|
|
500,000
|
544,135
|
04/15/2033
|
5.000%
|
|
1,335,000
|
1,459,262
|
Total
|
4,054,839
|
Health Services 1.4%
|
Massachusetts Development Finance Agency
|
Refunding Revenue Bonds
|
Atrius Health
|
Series 2019A
|
06/01/2039
|
5.000%
|
|
2,480,000
|
2,984,506
|
Municipal Bonds (continued)
|
Issue Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value ($)
|
Higher Education 21.2%
|
Massachusetts Development Finance Agency
|
Refunding Revenue Bonds
|
Babson College
|
Series 2015A
|
10/01/2025
|
5.000%
|
|
600,000
|
725,766
|
Boston University
|
Series 2006BB2
|
10/01/2037
|
4.000%
|
|
2,120,000
|
2,320,319
|
Brandeis Univeristy
|
10/01/2036
|
5.000%
|
|
1,535,000
|
1,940,240
|
Brandeis University
|
Series 2018R
|
10/01/2035
|
5.000%
|
|
1,005,000
|
1,260,773
|
10/01/2036
|
5.000%
|
|
1,140,000
|
1,426,288
|
College of the Holy Cross
|
Series 2016A
|
09/01/2034
|
5.000%
|
|
500,000
|
603,320
|
Emerson College
|
Series 2017A
|
01/01/2033
|
5.000%
|
|
1,500,000
|
1,788,660
|
01/01/2034
|
5.000%
|
|
1,000,000
|
1,189,990
|
Simmons College
|
Series 2015K-1
|
10/01/2026
|
5.000%
|
|
3,005,000
|
3,545,299
|
10/01/2028
|
5.000%
|
|
1,100,000
|
1,294,425
|
Simmons University
|
Series 2018L
|
10/01/2034
|
5.000%
|
|
500,000
|
606,620
|
10/01/2035
|
5.000%
|
|
455,000
|
550,454
|
Suffolk University
|
Series 2019
|
07/01/2035
|
5.000%
|
|
870,000
|
1,066,176
|
Tufts University
|
Series 2015Q
|
08/15/2030
|
5.000%
|
|
1,000,000
|
1,181,830
|
Western New England University
|
Series 2015
|
09/01/2032
|
5.000%
|
|
500,000
|
572,690
|
09/01/2033
|
5.000%
|
|
1,225,000
|
1,398,644
|
09/01/2034
|
5.000%
|
|
1,285,000
|
1,460,197
|
Woods Hole Oceanographic Institution
|
Series 2018
|
06/01/2036
|
5.000%
|
|
650,000
|
805,987
|
Worcester Polytechnic Institute
|
Series 2016
|
09/01/2034
|
5.000%
|
|
500,000
|
600,120
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
8
|
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Series 2017
|
09/01/2037
|
5.000%
|
|
290,000
|
349,056
|
Revenue Bonds
|
Babson College
|
Series 2017
|
10/01/2032
|
5.000%
|
|
885,000
|
1,085,497
|
10/01/2033
|
5.000%
|
|
900,000
|
1,101,636
|
Bentley University
|
Series 2016
|
07/01/2035
|
4.000%
|
|
1,000,000
|
1,104,800
|
07/01/2036
|
4.000%
|
|
1,000,000
|
1,100,450
|
Boston University Issue
|
Series 2019DD (Mandatory Put 04/01/24)
|
10/01/2042
|
5.000%
|
|
1,000,000
|
1,140,250
|
Brandeis University
|
Series 2019S-2
|
10/01/2033
|
5.000%
|
|
1,150,000
|
1,470,447
|
Merrimack College
|
Series 2012A
|
07/01/2027
|
5.000%
|
|
1,075,000
|
1,163,462
|
Simmons College
|
Series 2013J
|
10/01/2024
|
5.250%
|
|
500,000
|
568,575
|
10/01/2025
|
5.500%
|
|
450,000
|
515,448
|
Worcester Polytechnic Institute
|
Series 2019
|
09/01/2038
|
5.000%
|
|
865,000
|
1,072,453
|
Massachusetts Health & Educational Facilities Authority
|
Refunding Revenue Bonds
|
Berklee College of Music
|
Series 2007
|
10/01/2032
|
5.000%
|
|
170,000
|
170,517
|
Revenue Bonds
|
Boston College
|
Series 2008M-1
|
06/01/2024
|
5.500%
|
|
3,000,000
|
3,577,740
|
Massachusetts Institute of Technology
|
Series 2002K
|
07/01/2022
|
5.500%
|
|
1,000,000
|
1,114,280
|
Northeastern University
|
Series 2008T-1
|
10/01/2028
|
5.000%
|
|
1,000,000
|
1,101,020
|
Series 2008T-2
|
10/01/2029
|
5.000%
|
|
4,045,000
|
4,446,304
|
Massachusetts State College Building Authority
|
Unrefunded Revenue Bonds
|
Series 2012A
|
05/01/2029
|
5.000%
|
|
1,510,000
|
1,640,736
|
Total
|
47,060,469
|
Municipal Bonds (continued)
|
Issue Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value ($)
|
Hospital 19.5%
|
Massachusetts Development Finance Agency
|
Refunding Revenue Bonds
|
Caregroup
|
Series 2015H-1
|
07/01/2030
|
5.000%
|
|
1,170,000
|
1,372,188
|
Series 2016I
|
07/01/2033
|
5.000%
|
|
3,000,000
|
3,567,840
|
Lahey Clinic Obligation
|
Series 2015F
|
08/15/2031
|
5.000%
|
|
3,000,000
|
3,519,120
|
08/15/2034
|
5.000%
|
|
2,250,000
|
2,623,320
|
Partners HealthCare System
|
Series 2015
|
07/01/2032
|
5.000%
|
|
2,795,000
|
3,310,482
|
Series 2016
|
07/01/2031
|
5.000%
|
|
3,000,000
|
3,646,710
|
Series 2019A (AGM)
|
07/01/2034
|
5.000%
|
|
1,200,000
|
1,458,840
|
Series 2019O
|
12/01/2035
|
5.000%
|
|
175,000
|
221,420
|
UMass Memorial Healthcare
|
Series 2016I
|
07/01/2030
|
5.000%
|
|
2,295,000
|
2,722,788
|
Series 2017
|
07/01/2031
|
5.000%
|
|
1,000,000
|
1,201,290
|
Revenue Bonds
|
Baystate Medical Center
|
Series 2014N
|
07/01/2028
|
5.000%
|
|
1,000,000
|
1,146,340
|
07/01/2034
|
5.000%
|
|
1,500,000
|
1,698,015
|
Berkshire Health System
|
Series 2012G
|
10/01/2026
|
5.000%
|
|
1,200,000
|
1,285,824
|
CareGroup
|
Series 2018J1
|
07/01/2036
|
5.000%
|
|
985,000
|
1,199,553
|
07/01/2037
|
5.000%
|
|
1,035,000
|
1,254,275
|
Children’s Hospital
|
Series 2014P
|
10/01/2031
|
5.000%
|
|
1,200,000
|
1,395,780
|
Milford Regional Medical Center
|
Series 2014F
|
07/15/2026
|
5.000%
|
|
315,000
|
341,183
|
Southcoast Health System Obligation Group
|
Series 2013
|
07/01/2027
|
5.000%
|
|
1,050,000
|
1,172,997
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
9
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
UMass Memorial Healthcare
|
Series 2011H
|
07/01/2026
|
5.125%
|
|
2,000,000
|
2,117,180
|
Unrefunded Revenue Bonds
|
Boston Medical Center
|
Series 2012
|
07/01/2027
|
5.250%
|
|
1,850,000
|
2,016,703
|
Massachusetts Health & Educational Facilities Authority
|
Revenue Bonds
|
Milford Regional Medical Center
|
Series 2007E
|
07/15/2022
|
5.000%
|
|
945,000
|
952,768
|
Partners HealthCare System
|
Series 2010J-2
|
07/01/2022
|
5.000%
|
|
5,000,000
|
5,057,700
|
Total
|
43,282,316
|
Joint Power Authority 2.0%
|
Berkshire Wind Power Cooperative Corp.
|
Refunding Revenue Bonds
|
Berkshire Wind Project
|
Series 2017
|
07/01/2029
|
5.000%
|
|
1,000,000
|
1,229,360
|
Massachusetts Clean Energy Cooperative Corp.
|
Revenue Bonds
|
Municipal Lighting Plant Cooperative
|
Series 2013
|
07/01/2027
|
5.000%
|
|
2,720,000
|
3,085,214
|
Total
|
4,314,574
|
Multi-Family 1.7%
|
Massachusetts Development Finance Agency
|
Revenue Bonds
|
UMass Boston Student Housing Project
|
Series 2016
|
10/01/2033
|
5.000%
|
|
1,235,000
|
1,428,784
|
10/01/2034
|
5.000%
|
|
2,000,000
|
2,309,280
|
Total
|
3,738,064
|
Other Bond Issue 8.5%
|
Boston Housing Authority
|
Revenue Bonds
|
Capital Fund Program
|
Series 2008 (AGM)
|
04/01/2023
|
5.000%
|
|
1,855,000
|
1,860,361
|
04/01/2024
|
5.000%
|
|
3,240,000
|
3,249,364
|
Martha’s Vineyard Land Bank
|
Refunding Revenue Bonds
|
Green Bonds
|
Series 2014
|
05/01/2029
|
5.000%
|
|
1,000,000
|
1,177,720
|
05/01/2031
|
5.000%
|
|
1,000,000
|
1,168,770
|
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Series 2017 (BAM)
|
05/01/2034
|
5.000%
|
|
500,000
|
606,960
|
05/01/2035
|
5.000%
|
|
500,000
|
605,935
|
Massachusetts Development Finance Agency
|
Refunding Revenue Bonds
|
Broad Institute
|
Series 2017
|
04/01/2034
|
5.000%
|
|
2,500,000
|
3,095,975
|
04/01/2035
|
5.000%
|
|
2,350,000
|
2,903,213
|
Metropolitan Boston Transit Parking Corp.
|
Revenue Bonds
|
Series 2011
|
07/01/2025
|
5.000%
|
|
3,210,000
|
3,408,506
|
07/01/2027
|
5.000%
|
|
775,000
|
822,531
|
Total
|
18,899,335
|
Pool / Bond Bank 1.2%
|
Massachusetts Clean Water Trust (The)
|
Revenue Bonds
|
Green Bond
|
Series 2019
|
08/01/2038
|
5.000%
|
|
2,000,000
|
2,538,640
|
Prep School 0.5%
|
Massachusetts Development Finance Agency
|
Refunding Revenue Bonds
|
Dexter Southfield
|
Series 2015
|
05/01/2030
|
5.000%
|
|
1,035,000
|
1,197,267
|
Refunded / Escrowed 8.1%
|
Berkshire Wind Power Cooperative Corp.
|
Prerefunded 01/01/20 Revenue Bonds
|
Series 2010-1
|
07/01/2024
|
5.250%
|
|
1,785,000
|
1,796,388
|
Massachusetts Development Finance Agency
|
Prerefunded 07/01/20 Revenue Bonds
|
Foxborough Regional Charter School
|
Series 2010A
|
07/01/2030
|
6.375%
|
|
2,325,000
|
2,402,841
|
Prerefunded 07/01/22 Revenue Bonds
|
Boston Medical Center
|
Series 2012
|
07/01/2027
|
5.250%
|
|
1,845,000
|
2,038,873
|
Massachusetts State College Building Authority
|
Prerefunded 05/01/22 Revenue Bonds
|
State Intercept
|
Series 2012A
|
05/01/2029
|
5.000%
|
|
1,490,000
|
1,631,669
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
10
|
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Massachusetts State College Building Authority(d)
|
Revenue Bonds
|
Capital Appreciation
|
Series 1999A Escrowed to Maturity (NPFGC)
|
05/01/2028
|
0.000%
|
|
4,000,000
|
3,415,200
|
Massachusetts Water Resources Authority
|
Prerefunded 08/01/22 Revenue Bonds
|
Series 2012B
|
08/01/2028
|
5.000%
|
|
5,000,000
|
5,515,150
|
Puerto Rico Highway & Transportation Authority(e)
|
Refunding Revenue Bonds
|
Series 2005BB Escrowed to Maturity (AGM)
|
07/01/2022
|
5.250%
|
|
1,075,000
|
1,186,467
|
Total
|
17,986,588
|
Retirement Communities 2.7%
|
Massachusetts Development Finance Agency
|
Refunding Revenue Bonds
|
1st Mortgage-Berkshire Retirement Community
|
Series 2015
|
07/01/2031
|
5.000%
|
|
1,250,000
|
1,431,187
|
Orchard Cove, Inc.
|
Series 2019
|
10/01/2039
|
4.000%
|
|
985,000
|
1,042,642
|
10/01/2039
|
5.000%
|
|
250,000
|
283,303
|
Massachusetts Development Finance Agency(f)
|
Refunding Revenue Bonds
|
Newbridge Charles, Inc.
|
Series 2017
|
10/01/2032
|
4.000%
|
|
1,500,000
|
1,602,690
|
Revenue Bonds
|
Linden Ponds, Inc. Facility
|
Series 2018
|
11/15/2033
|
5.000%
|
|
1,500,000
|
1,712,745
|
Total
|
6,072,567
|
Sales Tax 9.1%
|
Massachusetts Bay Transportation Authority(d)
|
Refunding Revenue Bonds
|
Series 2016A
|
07/01/2029
|
0.000%
|
|
3,000,000
|
2,467,440
|
07/01/2032
|
0.000%
|
|
5,105,000
|
3,807,462
|
Massachusetts Bay Transportation Authority
|
Revenue Bonds
|
Series 2005B (NPFGC)
|
07/01/2023
|
5.500%
|
|
2,890,000
|
3,338,702
|
Series 2006A
|
07/01/2022
|
5.250%
|
|
3,500,000
|
3,876,145
|
Series 2008B
|
07/01/2023
|
5.000%
|
|
910,000
|
1,035,043
|
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Massachusetts School Building Authority
|
Revenue Bonds
|
Series 2011B
|
10/15/2027
|
5.000%
|
|
4,000,000
|
4,294,320
|
Subordinated Series 2019A
|
02/15/2029
|
5.000%
|
|
1,000,000
|
1,293,570
|
Total
|
20,112,682
|
State Appropriated 0.4%
|
Massachusetts Development Finance Agency
|
Revenue Bonds
|
Visual & Performing Arts Project
|
Series 2000
|
08/01/2021
|
6.000%
|
|
925,000
|
973,572
|
State General Obligation 9.0%
|
Commonwealth of Massachusetts
|
Limited General Obligation Bonds
|
Series 2016I
|
12/01/2030
|
5.000%
|
|
3,000,000
|
3,678,840
|
Series 2019G
|
09/01/2036
|
4.000%
|
|
2,000,000
|
2,322,920
|
Limited General Obligation Refunding Bonds
|
Series 2003D (NPFGC)
|
10/01/2020
|
5.500%
|
|
2,500,000
|
2,599,350
|
Series 2004B
|
08/01/2020
|
5.250%
|
|
3,000,000
|
3,091,890
|
Series 2006B (AGM)
|
09/01/2022
|
5.250%
|
|
2,000,000
|
2,227,360
|
Unlimited General Obligation Refunding Bonds
|
Series 2004C (AMBAC)
|
12/01/2024
|
5.500%
|
|
5,000,000
|
6,050,250
|
Total
|
19,970,610
|
Student Loan 2.1%
|
Massachusetts Educational Financing Authority
|
Revenue Bonds
|
Issue I
|
Series 2010A
|
01/01/2022
|
5.500%
|
|
4,625,000
|
4,658,901
|
Turnpike / Bridge / Toll Road 2.1%
|
Massachusetts Transportation Trust Fund Metropolitan Highway System
|
Refunding Revenue Bonds
|
Series 2019A
|
01/01/2035
|
5.000%
|
|
2,000,000
|
2,483,920
|
Revenue Bonds
|
Series 2010B
|
01/01/2022
|
5.000%
|
|
2,180,000
|
2,193,233
|
Total
|
4,677,153
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
11
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value ($)
|
Water & Sewer 2.9%
|
Massachusetts Water Resources Authority
|
Refunding Revenue Bonds
|
General
|
Series 2007B (AGM / TCRS)
|
08/01/2023
|
5.250%
|
|
5,500,000
|
6,318,125
|
Total Municipal Bonds
(Cost $201,913,544)
|
215,474,117
|
Money Market Funds 1.8%
|
|
Shares
|
Value ($)
|
Dreyfus AMT-Free Tax Exempt Cash Management Fund, Institutional Shares, 1.068%(g)
|
121,543
|
121,555
|
JPMorgan Institutional Tax Free Money Market Fund, Institutional Shares, 1.045%(g)
|
3,946,462
|
3,946,462
|
Total Money Market Funds
(Cost $4,068,005)
|
4,068,017
|
Total Investments in Securities
(Cost: $206,081,549)
|
219,642,134
|
Other Assets & Liabilities, Net
|
|
2,026,411
|
Net Assets
|
221,668,545
|
Notes to Portfolio of
Investments
(a)
|
The Fund is entitled to receive principal and interest from the guarantor after a day or a week’s notice or upon maturity. The maturity date disclosed represents the final maturity.
|
(b)
|
Represents a variable rate security where the coupon rate adjusts on specified dates (generally daily or weekly) using the prevailing money market rate. The interest rate shown was
the current rate as of October 31, 2019.
|
(c)
|
Income from this security may be subject to alternative minimum tax.
|
(d)
|
Zero coupon bond.
|
(e)
|
Municipal obligations include debt obligations issued by or on behalf of territories, possessions, or sovereign nations within the territorial boundaries of the United States. At
October 31, 2019, the total value of these securities amounted to $1,186,467, which represents 0.54% of total net assets.
|
(f)
|
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. The Fund may invest in private placements determined to be liquid as well as those determined to be illiquid.
Private placements may be determined to be liquid under guidelines established by the Fund’s Board of Trustees. At October 31, 2019, the total value of these securities amounted to $3,315,435, which represents
1.50% of total net assets.
|
(g)
|
The rate shown is the seven-day current annualized yield at October 31, 2019.
|
Abbreviation Legend
AGM
|
Assured Guaranty Municipal Corporation
|
AMBAC
|
Ambac Assurance Corporation
|
AMT
|
Alternative Minimum Tax
|
BAM
|
Build America Mutual Assurance Co.
|
NPFGC
|
National Public Finance Guarantee Corporation
|
TCRS
|
Transferable Custody Receipts
|
The accompanying Notes to Financial Statements are
an integral part of this statement.
12
|
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
Portfolio of Investments (continued)
October 31, 2019
Fair value measurements
The Fund categorizes its fair
value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available.
Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the
Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is
deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example,
certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in
the three broad levels listed below:
■
|
Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments.
|
■
|
Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.).
|
■
|
Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments).
|
Inputs that are used in determining
fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary
between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered
by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include
periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels
within the hierarchy.
Investments falling into the Level 3
category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency
and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant
unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and
estimated cash flows, and comparable company data.
Under the direction of the
Fund’s Board of Trustees (the Board), the Investment Manager’s Valuation Committee (the Committee) is responsible for overseeing the valuation procedures approved by the Board. The Committee consists of
voting and non-voting members from various groups within the Investment Manager’s organization, including operations and accounting, trading and investments, compliance, risk management and legal.
The Committee meets at least monthly
to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of
Board-approved valuation control policies and procedures (the Policies). The Policies address, among other things, instances when market quotations are or are not readily available, including recommendations of third
party pricing vendors and a determination of appropriate pricing methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale
pricing, including those that are illiquid, restricted, or in default; and the effectiveness of third party pricing vendors, including periodic reviews of vendors. The Committee meets more frequently, as needed, to
discuss additional valuation matters, which may include the need to review back-testing results, review time-sensitive information or approve related valuation actions. The Committee reports to the Board, with members
of the Committee meeting with the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.
The following table is a summary of
the inputs used to value the Fund’s investments at October 31, 2019:
|
Level 1 ($)
|
Level 2 ($)
|
Level 3 ($)
|
Total ($)
|
Investments in Securities
|
|
|
|
|
Floating Rate Notes
|
—
|
100,000
|
—
|
100,000
|
Municipal Bonds
|
—
|
215,474,117
|
—
|
215,474,117
|
Money Market Funds
|
4,068,017
|
—
|
—
|
4,068,017
|
Total Investments in Securities
|
4,068,017
|
215,574,117
|
—
|
219,642,134
|
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The Fund’s assets assigned to
the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical
assets.
The accompanying Notes to Financial Statements are
an integral part of this statement.
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
13
|
Statement of Assets and Liabilities
October 31, 2019
Assets
|
|
Investments in securities, at value
|
|
Unaffiliated issuers (cost $206,081,549)
|
$219,642,134
|
Cash
|
207
|
Receivable for:
|
|
Capital shares sold
|
381,806
|
Interest
|
2,330,846
|
Expense reimbursement due from Investment Manager
|
714
|
Prepaid expenses
|
1,141
|
Trustees’ deferred compensation plan
|
79,456
|
Total assets
|
222,436,304
|
Liabilities
|
|
Payable for:
|
|
Capital shares purchased
|
121,108
|
Distributions to shareholders
|
522,649
|
Management services fees
|
2,840
|
Distribution and/or service fees
|
282
|
Transfer agent fees
|
23,026
|
Compensation of board members
|
174
|
Compensation of chief compliance officer
|
7
|
Other expenses
|
18,217
|
Trustees’ deferred compensation plan
|
79,456
|
Total liabilities
|
767,759
|
Net assets applicable to outstanding capital stock
|
$221,668,545
|
Represented by
|
|
Paid in capital
|
207,931,034
|
Total distributable earnings (loss)
|
13,737,511
|
Total - representing net assets applicable to outstanding capital stock
|
$221,668,545
|
The accompanying Notes to Financial Statements are
an integral part of this statement.
14
|
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
Statement of Assets and Liabilities (continued)
October 31, 2019
Class A
|
|
Net assets
|
$23,968,201
|
Shares outstanding
|
2,251,455
|
Net asset value per share
|
$10.65
|
Maximum sales charge
|
3.00%
|
Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares)
|
$10.98
|
Advisor Class
|
|
Net assets
|
$3,187,846
|
Shares outstanding
|
299,685
|
Net asset value per share
|
$10.64
|
Class C
|
|
Net assets
|
$3,472,314
|
Shares outstanding
|
326,275
|
Net asset value per share
|
$10.64
|
Institutional Class
|
|
Net assets
|
$177,665,332
|
Shares outstanding
|
16,688,260
|
Net asset value per share
|
$10.65
|
Institutional 2 Class
|
|
Net assets
|
$408,103
|
Shares outstanding
|
38,266
|
Net asset value per share
|
$10.66
|
Institutional 3 Class
|
|
Net assets
|
$127,641
|
Shares outstanding
|
11,932
|
Net asset value per share
|
$10.70
|
Class V
|
|
Net assets
|
$12,839,108
|
Shares outstanding
|
1,206,013
|
Net asset value per share
|
$10.65
|
Maximum sales charge
|
4.75%
|
Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge
for Class V shares)
|
$11.18
|
The accompanying Notes to Financial Statements are
an integral part of this statement.
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
15
|
Statement of Operations
Year Ended October 31, 2019
Net investment income
|
|
Income:
|
|
Dividends — unaffiliated issuers
|
$14,290
|
Interest
|
7,658,715
|
Total income
|
7,673,005
|
Expenses:
|
|
Management services fees
|
1,013,279
|
Distribution and/or service fees
|
|
Class A
|
50,610
|
Class C
|
46,992
|
Class V
|
23,378
|
Transfer agent fees
|
|
Class A
|
26,476
|
Advisor Class
|
3,792
|
Class C
|
6,167
|
Institutional Class
|
224,817
|
Institutional 2 Class
|
174
|
Institutional 3 Class
|
23
|
Class V
|
20,418
|
Compensation of board members
|
16,654
|
Custodian fees
|
2,888
|
Printing and postage fees
|
15,461
|
Registration fees
|
24,283
|
Audit fees
|
29,500
|
Legal fees
|
4,569
|
Compensation of chief compliance officer
|
83
|
Other
|
16,561
|
Total expenses
|
1,526,125
|
Fees waived or expenses reimbursed by Investment Manager and its affiliates
|
(212,620)
|
Fees waived by distributor
|
|
Class C
|
(14,098)
|
Expense reduction
|
(100)
|
Total net expenses
|
1,299,307
|
Net investment income
|
6,373,698
|
Realized and unrealized gain (loss) — net
|
|
Net realized gain (loss) on:
|
|
Investments — unaffiliated issuers
|
135,560
|
Net realized gain
|
135,560
|
Net change in unrealized appreciation (depreciation) on:
|
|
Investments — unaffiliated issuers
|
10,274,380
|
Net change in unrealized appreciation (depreciation)
|
10,274,380
|
Net realized and unrealized gain
|
10,409,940
|
Net increase in net assets resulting from operations
|
$16,783,638
|
The accompanying Notes to
Financial Statements are an integral part of this statement.
16
|
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
Statement of Changes in Net Assets
|
Year Ended
October 31, 2019
|
Year Ended
October 31, 2018
|
Operations
|
|
|
Net investment income
|
$6,373,698
|
$6,688,021
|
Net realized gain
|
135,560
|
582,828
|
Net change in unrealized appreciation (depreciation)
|
10,274,380
|
(9,999,853)
|
Net increase (decrease) in net assets resulting from operations
|
16,783,638
|
(2,729,004)
|
Distributions to shareholders
|
|
|
Net investment income and net realized gains
|
|
|
Class A
|
(605,638)
|
(558,316)
|
Advisor Class
|
(94,143)
|
(106,828)
|
Class C
|
(124,550)
|
(172,616)
|
Institutional Class
|
(5,585,067)
|
(5,891,505)
|
Institutional 2 Class
|
(7,633)
|
(934)
|
Institutional 3 Class
|
(3,827)
|
(3,609)
|
Class V
|
(486,871)
|
(523,157)
|
Total distributions to shareholders
|
(6,907,729)
|
(7,256,965)
|
Increase (decrease) in net assets from capital stock activity
|
2,136,522
|
(27,093,837)
|
Total increase (decrease) in net assets
|
12,012,431
|
(37,079,806)
|
Net assets at beginning of year
|
209,656,114
|
246,735,920
|
Net assets at end of year
|
$221,668,545
|
$209,656,114
|
The accompanying Notes to
Financial Statements are an integral part of this statement.
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
17
|
Statement of Changes in Net Assets (continued)
|
Year Ended
|
Year Ended
|
|
October 31, 2019
|
October 31, 2018
|
|
Shares
|
Dollars ($)
|
Shares
|
Dollars ($)
|
Capital stock activity
|
Class A
|
|
|
|
|
Subscriptions
|
718,754
|
7,578,798
|
500,349
|
5,213,200
|
Distributions reinvested
|
53,157
|
556,718
|
47,911
|
496,982
|
Redemptions
|
(393,920)
|
(4,102,662)
|
(418,129)
|
(4,355,849)
|
Net increase
|
377,991
|
4,032,854
|
130,131
|
1,354,333
|
Advisor Class
|
|
|
|
|
Subscriptions
|
95,742
|
995,390
|
87,025
|
910,046
|
Distributions reinvested
|
8,966
|
93,827
|
10,267
|
106,519
|
Redemptions
|
(57,794)
|
(600,647)
|
(174,557)
|
(1,805,001)
|
Net increase (decrease)
|
46,914
|
488,570
|
(77,265)
|
(788,436)
|
Class C
|
|
|
|
|
Subscriptions
|
51,432
|
533,573
|
53,992
|
560,075
|
Distributions reinvested
|
10,287
|
107,255
|
14,868
|
154,359
|
Redemptions
|
(304,166)
|
(3,186,747)
|
(203,772)
|
(2,115,397)
|
Net decrease
|
(242,447)
|
(2,545,919)
|
(134,912)
|
(1,400,963)
|
Institutional Class
|
|
|
|
|
Subscriptions
|
2,953,295
|
30,814,296
|
1,588,845
|
16,553,186
|
Distributions reinvested
|
37,995
|
397,613
|
42,231
|
438,449
|
Redemptions
|
(2,660,096)
|
(27,672,739)
|
(4,034,022)
|
(41,913,720)
|
Net increase (decrease)
|
331,194
|
3,539,170
|
(2,402,946)
|
(24,922,085)
|
Institutional 2 Class
|
|
|
|
|
Subscriptions
|
33,721
|
352,716
|
9,882
|
102,486
|
Distributions reinvested
|
689
|
7,317
|
61
|
626
|
Redemptions
|
(145)
|
(1,538)
|
(6,849)
|
(70,019)
|
Net increase
|
34,265
|
358,495
|
3,094
|
33,093
|
Institutional 3 Class
|
|
|
|
|
Subscriptions
|
1,073
|
11,497
|
—
|
—
|
Distributions reinvested
|
332
|
3,492
|
315
|
3,281
|
Redemptions
|
(41)
|
(429)
|
(36)
|
(368)
|
Net increase
|
1,364
|
14,560
|
279
|
2,913
|
Class V
|
|
|
|
|
Subscriptions
|
30,690
|
320,390
|
28,728
|
298,059
|
Distributions reinvested
|
23,185
|
242,624
|
25,076
|
260,262
|
Redemptions
|
(404,470)
|
(4,314,222)
|
(186,147)
|
(1,931,013)
|
Net decrease
|
(350,595)
|
(3,751,208)
|
(132,343)
|
(1,372,692)
|
Total net increase (decrease)
|
198,686
|
2,136,522
|
(2,613,962)
|
(27,093,837)
|
The accompanying Notes to Financial Statements are
an integral part of this statement.
18
|
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
[THIS PAGE INTENTIONALLY LEFT
BLANK]
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
19
|
The following table is intended to
help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are
calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total
return and portfolio turnover are not annualized for periods of less than one year. The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments and certain
derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be higher.
|
Net asset value,
beginning of
period
|
Net
investment
income
|
Net
realized
and
unrealized
gain (loss)
|
Total from
investment
operations
|
Distributions
from net
investment
income
|
Distributions
from net
realized
gains
|
Total
distributions to
shareholders
|
Class A
|
Year Ended 10/31/2019
|
$10.17
|
0.29
|
0.51
|
0.80
|
(0.29)
|
(0.03)
|
(0.32)
|
Year Ended 10/31/2018
|
$10.62
|
0.28
|
(0.42)
|
(0.14)
|
(0.28)
|
(0.03)
|
(0.31)
|
Year Ended 10/31/2017
|
$10.88
|
0.29
|
(0.19)
|
0.10
|
(0.29)
|
(0.07)
|
(0.36)
|
Year Ended 10/31/2016
|
$10.93
|
0.31
|
(0.05)
|
0.26
|
(0.31)
|
(0.00)(e)
|
(0.31)
|
Year Ended 10/31/2015
|
$11.01
|
0.32
|
(0.08)
|
0.24
|
(0.32)
|
—
|
(0.32)
|
Advisor Class
|
Year Ended 10/31/2019
|
$10.16
|
0.31
|
0.51
|
0.82
|
(0.31)
|
(0.03)
|
(0.34)
|
Year Ended 10/31/2018
|
$10.61
|
0.31
|
(0.43)
|
(0.12)
|
(0.30)
|
(0.03)
|
(0.33)
|
Year Ended 10/31/2017
|
$10.87
|
0.32
|
(0.20)
|
0.12
|
(0.31)
|
(0.07)
|
(0.38)
|
Year Ended 10/31/2016
|
$10.92
|
0.33
|
(0.05)
|
0.28
|
(0.33)
|
(0.00)(e)
|
(0.33)
|
Year Ended 10/31/2015
|
$11.01
|
0.35
|
(0.09)
|
0.26
|
(0.35)
|
—
|
(0.35)
|
Class C
|
Year Ended 10/31/2019
|
$10.16
|
0.24
|
0.51
|
0.75
|
(0.24)
|
(0.03)
|
(0.27)
|
Year Ended 10/31/2018
|
$10.62
|
0.24
|
(0.44)
|
(0.20)
|
(0.23)
|
(0.03)
|
(0.26)
|
Year Ended 10/31/2017
|
$10.88
|
0.24
|
(0.19)
|
0.05
|
(0.24)
|
(0.07)
|
(0.31)
|
Year Ended 10/31/2016
|
$10.93
|
0.26
|
(0.05)
|
0.21
|
(0.26)
|
(0.00)(e)
|
(0.26)
|
Year Ended 10/31/2015
|
$11.01
|
0.27
|
(0.08)
|
0.19
|
(0.27)
|
—
|
(0.27)
|
Institutional Class
|
Year Ended 10/31/2019
|
$10.17
|
0.31
|
0.51
|
0.82
|
(0.31)
|
(0.03)
|
(0.34)
|
Year Ended 10/31/2018
|
$10.62
|
0.31
|
(0.43)
|
(0.12)
|
(0.30)
|
(0.03)
|
(0.33)
|
Year Ended 10/31/2017
|
$10.88
|
0.32
|
(0.20)
|
0.12
|
(0.31)
|
(0.07)
|
(0.38)
|
Year Ended 10/31/2016
|
$10.93
|
0.33
|
(0.05)
|
0.28
|
(0.33)
|
(0.00)(e)
|
(0.33)
|
Year Ended 10/31/2015
|
$11.02
|
0.35
|
(0.09)
|
0.26
|
(0.35)
|
—
|
(0.35)
|
Institutional 2 Class
|
Year Ended 10/31/2019
|
$10.18
|
0.32
|
0.51
|
0.83
|
(0.32)
|
(0.03)
|
(0.35)
|
Year Ended 10/31/2018
|
$10.64
|
0.31
|
(0.43)
|
(0.12)
|
(0.31)
|
(0.03)
|
(0.34)
|
Year Ended 10/31/2017
|
$10.90
|
0.32
|
(0.19)
|
0.13
|
(0.32)
|
(0.07)
|
(0.39)
|
Year Ended 10/31/2016(f)
|
$11.03
|
0.23
|
(0.13)
|
0.10
|
(0.23)
|
—
|
(0.23)
|
Institutional 3 Class
|
Year Ended 10/31/2019
|
$10.22
|
0.33
|
0.50
|
0.83
|
(0.32)
|
(0.03)
|
(0.35)
|
Year Ended 10/31/2018
|
$10.67
|
0.32
|
(0.42)
|
(0.10)
|
(0.32)
|
(0.03)
|
(0.35)
|
Year Ended 10/31/2017(h)
|
$10.56
|
0.22
|
0.11(i)
|
0.33
|
(0.22)
|
—
|
(0.22)
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
20
|
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
Financial Highlights (continued)
|
Net
asset
value,
end of
period
|
Total
return
|
Total gross
expense
ratio to
average
net assets(a)
|
Total net
expense
ratio to
average
net assets(a),(b)
|
Net investment
income
ratio to
average
net assets
|
Portfolio
turnover
|
Net
assets,
end of
period
(000’s)
|
Class A
|
Year Ended 10/31/2019
|
$10.65
|
7.92%
|
0.90%
|
0.80%(c)
|
2.75%
|
15%
|
$23,968
|
Year Ended 10/31/2018
|
$10.17
|
(1.36%)
|
0.90%
|
0.81%(c)
|
2.72%
|
13%
|
$19,046
|
Year Ended 10/31/2017
|
$10.62
|
0.95%
|
0.90%(d)
|
0.78%(c),(d)
|
2.74%
|
5%
|
$18,512
|
Year Ended 10/31/2016
|
$10.88
|
2.34%
|
0.96%
|
0.81%(c)
|
2.77%
|
16%
|
$27,398
|
Year Ended 10/31/2015
|
$10.93
|
2.21%
|
0.97%
|
0.81%(c)
|
2.93%
|
8%
|
$23,583
|
Advisor Class
|
Year Ended 10/31/2019
|
$10.64
|
8.19%
|
0.65%
|
0.55%(c)
|
3.00%
|
15%
|
$3,188
|
Year Ended 10/31/2018
|
$10.16
|
(1.12%)
|
0.65%
|
0.56%(c)
|
2.97%
|
13%
|
$2,568
|
Year Ended 10/31/2017
|
$10.61
|
1.20%
|
0.66%(d)
|
0.54%(c),(d)
|
2.98%
|
5%
|
$3,502
|
Year Ended 10/31/2016
|
$10.87
|
2.60%
|
0.71%
|
0.56%(c)
|
3.02%
|
16%
|
$3,804
|
Year Ended 10/31/2015
|
$10.92
|
2.38%
|
0.72%
|
0.56%(c)
|
3.19%
|
8%
|
$2,959
|
Class C
|
Year Ended 10/31/2019
|
$10.64
|
7.44%
|
1.65%
|
1.25%(c)
|
2.32%
|
15%
|
$3,472
|
Year Ended 10/31/2018
|
$10.16
|
(1.90%)
|
1.65%
|
1.26%(c)
|
2.27%
|
13%
|
$5,780
|
Year Ended 10/31/2017
|
$10.62
|
0.50%
|
1.66%(d)
|
1.24%(c),(d)
|
2.29%
|
5%
|
$7,470
|
Year Ended 10/31/2016
|
$10.88
|
1.88%
|
1.71%
|
1.26%(c)
|
2.32%
|
16%
|
$10,315
|
Year Ended 10/31/2015
|
$10.93
|
1.76%
|
1.72%
|
1.26%(c)
|
2.48%
|
8%
|
$9,790
|
Institutional Class
|
Year Ended 10/31/2019
|
$10.65
|
8.19%
|
0.65%
|
0.55%(c)
|
3.01%
|
15%
|
$177,665
|
Year Ended 10/31/2018
|
$10.17
|
(1.11%)
|
0.65%
|
0.56%(c)
|
2.97%
|
13%
|
$166,289
|
Year Ended 10/31/2017
|
$10.62
|
1.20%
|
0.66%(d)
|
0.54%(c),(d)
|
2.98%
|
5%
|
$199,199
|
Year Ended 10/31/2016
|
$10.88
|
2.60%
|
0.71%
|
0.56%(c)
|
3.03%
|
16%
|
$235,472
|
Year Ended 10/31/2015
|
$10.93
|
2.38%
|
0.72%
|
0.56%(c)
|
3.18%
|
8%
|
$235,129
|
Institutional 2 Class
|
Year Ended 10/31/2019
|
$10.66
|
8.25%
|
0.59%
|
0.49%
|
3.03%
|
15%
|
$408
|
Year Ended 10/31/2018
|
$10.18
|
(1.15%)
|
0.57%
|
0.50%
|
3.01%
|
13%
|
$41
|
Year Ended 10/31/2017
|
$10.64
|
1.28%
|
0.56%(d)
|
0.47%(d)
|
3.05%
|
5%
|
$10
|
Year Ended 10/31/2016(f)
|
$10.90
|
0.86%
|
0.59%(g)
|
0.47%(g)
|
3.07%(g)
|
16%
|
$10
|
Institutional 3 Class
|
Year Ended 10/31/2019
|
$10.70
|
8.28%
|
0.54%
|
0.44%
|
3.12%
|
15%
|
$128
|
Year Ended 10/31/2018
|
$10.22
|
(0.99%)
|
0.54%
|
0.45%
|
3.08%
|
13%
|
$108
|
Year Ended 10/31/2017(h)
|
$10.67
|
3.10%
|
0.55%(g)
|
0.45%(g)
|
3.21%(g)
|
5%
|
$110
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
21
|
Financial Highlights (continued)
|
Net asset value,
beginning of
period
|
Net
investment
income
|
Net
realized
and
unrealized
gain (loss)
|
Total from
investment
operations
|
Distributions
from net
investment
income
|
Distributions
from net
realized
gains
|
Total
distributions to
shareholders
|
Class V
|
Year Ended 10/31/2019
|
$10.17
|
0.30
|
0.51
|
0.81
|
(0.30)
|
(0.03)
|
(0.33)
|
Year Ended 10/31/2018
|
$10.62
|
0.29
|
(0.42)
|
(0.13)
|
(0.29)
|
(0.03)
|
(0.32)
|
Year Ended 10/31/2017
|
$10.88
|
0.30
|
(0.19)
|
0.11
|
(0.30)
|
(0.07)
|
(0.37)
|
Year Ended 10/31/2016
|
$10.93
|
0.32
|
(0.05)
|
0.27
|
(0.32)
|
(0.00)(e)
|
(0.32)
|
Year Ended 10/31/2015
|
$11.02
|
0.33
|
(0.09)
|
0.24
|
(0.33)
|
—
|
(0.33)
|
Notes to Financial Highlights
|
(a)
|
In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such
indirect expenses are not included in the Fund’s reported expense ratios.
|
(b)
|
Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable.
|
(c)
|
The benefits derived from expense reductions had an impact of less than 0.01%.
|
(d)
|
Expenses have been reduced due to a reimbursement of expenses overbilled by a third party. If the reimbursement had been excluded, the expense ratios would have been higher by the
percentages shown for each class in the table below. All fee waivers and expense reimbursements by the Investment Manager and its affiliates were applied before giving effect to this third party reimbursement.
|
Year Ended
|
Class A
|
Advisor
Class
|
Class C
|
Institutional
Class
|
Institutional 2
Class
|
Class V
|
10/31/2017
|
0.03%
|
0.02%
|
0.02%
|
0.02%
|
0.02%
|
0.02%
|
(e)
|
Rounds to zero.
|
(f)
|
Institutional 2 Class shares commenced operations on March 1, 2016. Per share data and total return reflect activity from that date.
|
(g)
|
Annualized.
|
(h)
|
Institutional 3 Class shares commenced operations on March 1, 2017. Per share data and total return reflect activity from that date.
|
(i)
|
Calculation of the net gain (loss) per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gain (loss) presented in the Statement of
Operations due to the timing of subscriptions and redemptions of Fund shares in relation to fluctuations in the market value of the portfolio.
|
The accompanying Notes to
Financial Statements are an integral part of this statement.
22
|
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
Financial Highlights (continued)
|
Net
asset
value,
end of
period
|
Total
return
|
Total gross
expense
ratio to
average
net assets(a)
|
Total net
expense
ratio to
average
net assets(a),(b)
|
Net investment
income
ratio to
average
net assets
|
Portfolio
turnover
|
Net
assets,
end of
period
(000’s)
|
Class V
|
Year Ended 10/31/2019
|
$10.65
|
8.03%
|
0.80%
|
0.70%(c)
|
2.86%
|
15%
|
$12,839
|
Year Ended 10/31/2018
|
$10.17
|
(1.26%)
|
0.80%
|
0.71%(c)
|
2.82%
|
13%
|
$15,825
|
Year Ended 10/31/2017
|
$10.62
|
1.05%
|
0.81%(d)
|
0.69%(c),(d)
|
2.83%
|
5%
|
$17,934
|
Year Ended 10/31/2016
|
$10.88
|
2.45%
|
0.86%
|
0.71%(c)
|
2.88%
|
16%
|
$18,697
|
Year Ended 10/31/2015
|
$10.93
|
2.22%
|
0.87%
|
0.71%(c)
|
3.03%
|
8%
|
$19,185
|
The accompanying Notes to Financial Statements are
an integral part of this statement.
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
23
|
Notes to Financial Statements
October 31, 2019
Note 1. Organization
Columbia Massachusetts
Intermediate Municipal Bond Fund (the Fund), a series of Columbia Funds Series Trust I (the Trust), is a non-diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940
Act), as an open-end management investment company organized as a Massachusetts business trust.
Fund shares
The Trust may issue an unlimited
number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation
rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have
different minimum initial investment amounts and pay different distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a liquidation will be
proportional to the net asset value of each share class.
As described in the Fund’s
prospectus, Class A and Class C shares are offered to the general public for investment. Advisor Class, Institutional Class, Institutional 2 Class and Institutional 3 Class are available through authorized investment
professionals to omnibus retirement plans or to institutional investors and to certain other investors as also described in the Fund’s prospectus. Class C shares automatically convert to Class A shares after 10
years. Class V shares are available only to investors who received (and who continuously held) Class V shares in connection with previous fund reorganizations.
Note 2. Summary of
significant accounting policies
Basis of preparation
The Fund is an investment company
that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires
management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of
significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Debt securities generally are
valued by pricing services approved by the Board of Trustees based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques that take
into account, as applicable, factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as approved independent broker-dealer quotes. Debt securities for
which quotations are not readily available or not believed to be reflective of market value may also be valued based upon a bid quote from an approved independent broker-dealer. Debt securities maturing in 60 days or
less are valued primarily at amortized cost value, unless this method results in a valuation that management believes does not approximate market value.
Investments in open-end investment
companies, including money market funds, are valued at their latest net asset value.
Investments for which market
quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by
and under the general supervision of the Board of Trustees. If a security or class of securities (such as foreign securities) is valued at fair value, such value is likely to be different from the quoted or published
price for the security, if available.
The determination of fair value
often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and estimated risk premiums. Multiple inputs from various sources may be used
to determine fair value.
24
|
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
Notes to Financial Statements (continued)
October 31, 2019
GAAP requires disclosure regarding
the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category. This information is disclosed following
the Fund’s Portfolio of Investments.
Security transactions
Security transactions are accounted
for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income recognition
Interest income is recorded on an
accrual basis. Market premiums and discounts, including original issue discounts, are amortized and accreted, respectively, over the expected life of the security on all debt securities, unless otherwise noted.
The Fund may place a debt security
on non-accrual status and reduce related interest income when it becomes probable that the interest will not be collected and the amount of uncollectible interest can be reasonably estimated. A defaulted debt security
is removed from non-accrual status when the issuer resumes interest payments or when collectibility of interest is reasonably assured.
Dividend income is recorded on the
ex-dividend date.
Expenses
General expenses of the Trust are
allocated to the Fund and other funds of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are
charged to the Fund. Expenses directly attributable to a specific class of shares are charged to that share class.
Determination of class net asset
value
All income, expenses (other than
class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on
the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each
year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its net tax-exempt and investment company taxable income and net capital
gain, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net
income and certain other amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Distributions to shareholders
Distributions from net investment
income, if any, are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal
income tax regulations, which may differ from GAAP.
Guarantees and indemnifications
Under the Trust’s
organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition,
certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims
that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
Recent accounting pronouncements
Accounting Standards Update 2017-08
Premium Amortization on Purchased Callable Debt Securities
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
25
|
Notes to Financial Statements (continued)
October 31, 2019
In March 2017, the Financial
Accounting Standards Board issued Accounting Standards Update (ASU) No. 2017-08 Premium Amortization on Purchased Callable Debt Securities. ASU No. 2017-08 updates the accounting standards to shorten the amortization
period for certain purchased callable debt securities, held at a premium, to be amortized to the earliest call date. The update applies to securities with explicit, noncontingent call features that are callable at
fixed prices and on preset dates. The standard is effective for annual periods beginning after December 15, 2018 and interim periods within those fiscal years. Management does not expect the implementation of this
guidance to have a material impact on the financial statement amounts and footnote disclosures.
Accounting Standards Update 2018-13
Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement
In August 2018, the Financial
Accounting Standards Board issued Accounting Standards Update (ASU) No. 2018-13 Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The standard is effective for annual periods
beginning after December 15, 2019 and interim periods within those fiscal years, with early adoption permitted. After evaluation, management determined to adopt the ASU effective for the period ended July 31, 2019 and
all subsequent periods. To comply with the ASU, management implemented disclosure changes which include removal of the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, removal
of the policy for the timing of transfers between levels, removal of the description of the Level 3 valuation processes, as well as modifications to the measurement uncertainty disclosure.
Note 3. Fees and other
transactions with affiliates
Management services fees
The Fund has entered into a
Management Agreement with Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). Under the Management Agreement, the
Investment Manager provides the Fund with investment research and advice, as well as administrative and accounting services. The management services fee is an annual fee that is equal to a percentage of the
Fund’s daily net assets that declines from 0.47% to 0.31% as the Fund’s net assets increase. The effective management services fee rate for the year ended October 31, 2019 was 0.47% of the Fund’s
average daily net assets.
Compensation of board members
Members of the Board of Trustees
who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. These members of the Board of Trustees
may participate in a Deferred Compensation Plan (the Deferred Plan) which may be terminated at any time. Obligations of the Deferred Plan will be paid solely out of the Fund’s assets, and all amounts payable
under the Deferred Plan constitute a general unsecured obligation of the Fund.
Compensation of Chief Compliance
Officer
The Board of Trustees has appointed
a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated
to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
Transfer agency fees
Under a Transfer and Dividend
Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for
providing transfer agency services to the Fund. The Transfer Agent has contracted with DST Asset Manager Solutions, Inc. (DST) to serve as sub-transfer agent. The Transfer Agent pays the fees of DST for services as
sub-transfer agent and DST is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
26
|
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
Notes to Financial Statements (continued)
October 31, 2019
The Fund pays the Transfer Agent a
monthly transfer agency fee based on the number or the average value of accounts, depending on the type of account. In addition, the Fund pays the Transfer Agent a fee for shareholder services based on the number of
accounts or on a percentage of the average aggregate value of the Fund’s shares maintained in omnibus accounts up to the lesser of the amount charged by the financial intermediary or a cap established by the
Board of Trustees from time to time.
The Transfer Agent also receives
compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees. Total transfer agency fees for Institutional 2 Class and Institutional 3 Class shares are subject to an
annual limitation of not more than 0.07% and 0.02%, respectively, of the average daily net assets attributable to each share class.
For the year ended October 31,
2019, the Fund’s effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
|
Effective rate (%)
|
Class A
|
0.13
|
Advisor Class
|
0.13
|
Class C
|
0.13
|
Institutional Class
|
0.13
|
Institutional 2 Class
|
0.07
|
Institutional 3 Class
|
0.02
|
Class V
|
0.13
|
An annual minimum account balance
fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum
account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the year ended October 31, 2019, these minimum account balance fees reduced total expenses
of the Fund by $100.
Distribution and service fees
The Fund has entered into an
agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder
services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the
Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a
monthly service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class A and Class C shares of the Fund. Also under the Plans, the Fund pays a monthly
distribution fee to the Distributor at the maximum annual rate of 0.75% of the average daily net assets attributable to Class C shares of the Fund.
The Distributor has voluntarily
agreed to waive a portion of the distribution fee for Class C shares so that the distribution fee does not exceed 0.45% annually of the average daily net assets attributable to Class C shares. This arrangement may be
modified or terminated by the Distributor at any time.
Shareholder services fees
The Fund has adopted a shareholder
services plan that permits it to pay for certain services provided to Class V shareholders by their selling and/or servicing agents. The Fund may pay shareholder servicing fees up to an aggregate annual rate of 0.40%
of the Fund’s average daily net assets attributable to Class V shares (comprised of up to 0.20% for shareholder liaison services and up to 0.20% for administrative support services). These fees are currently
limited to an aggregate annual rate of not more than 0.15% of the Fund’s average daily net assets attributable to Class V shares.
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
27
|
Notes to Financial Statements (continued)
October 31, 2019
Sales charges (unaudited)
Sales charges, including front-end
charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the year ended October 31, 2019, if any, are listed below:
|
Front End (%)
|
CDSC (%)
|
Amount ($)
|
Class A
|
3.00
|
0.75(a)
|
3,490
|
Class C
|
—
|
1.00(b)
|
354
|
Class V
|
4.75
|
0.50 - 1.00(c)
|
—
|
(a)
|
This charge is imposed on certain investments of $500,000 or more if redeemed within 12 months after purchase.
|
(b)
|
This charge applies to redemptions within 12 months after purchase, with certain limited exceptions.
|
(c)
|
This charge is imposed on certain investments of between $1 million and $50 million redeemed within 18 months after purchase, as follows: 1.00% if redeemed within 12 months after
purchase, and 0.50% if redeemed more than 12, but less than 18, months after purchase, with certain limited exceptions.
|
The Fund’s other share
classes are not subject to sales charges.
Expenses waived/reimbursed by the
Investment Manager and its affiliates
The Investment Manager and certain
of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole
discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s
custodian, do not exceed the following annual rate(s) as a percentage of the class’ average daily net assets:
|
March 1, 2019
through
February 29, 2020
|
Prior to
March 1, 2019
|
Class A
|
0.81%
|
0.81%
|
Advisor Class
|
0.56
|
0.56
|
Class C
|
1.56
|
1.56
|
Institutional Class
|
0.56
|
0.56
|
Institutional 2 Class
|
0.49
|
0.50
|
Institutional 3 Class
|
0.44
|
0.45
|
Class V
|
0.71
|
0.71
|
Under the agreement governing
these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes
(including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and
brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed
money, interest, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be modified or amended only with approval from
the Investment Manager, certain of its affiliates and the Fund. In addition to the contractual agreement, the Investment Manager and certain of its affiliates have voluntarily agreed to waive fees and/or reimburse
Fund expenses (excluding certain fees and expenses described above) so that Fund level expenses (expenses directly attributable to the Fund and not to a specific share class) are waived proportionately across all
share classes, but the Fund’s net operating expenses shall not exceed the contractual annual rates listed in the table above. This arrangement may be revised or discontinued at any time. Any fees waived and/or
expenses reimbursed under the expense reimbursement arrangements described above are not recoverable by the Investment Manager or its affiliates in future periods. Class C distribution fees waived by the Distributor,
as discussed above, are in addition to the waiver/reimbursement commitment under the agreement.
Note 4. Federal tax
information
The timing and character of
income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP because of temporary or permanent book to tax differences.
28
|
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
Notes to Financial Statements (continued)
October 31, 2019
At October 31, 2019, these
differences were primarily due to differing treatment for trustees’ deferred compensation, distributions, and principal and/or interest of fixed income securities. 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 Fund did not have any permanent
differences; therefore, no reclassifications were made.
The tax character of distributions
paid during the years indicated was as follows:
Year Ended October 31, 2019
|
Year Ended October 31, 2018
|
Ordinary
income ($)
|
Tax-exempt
income ($)
|
Long-term
capital gains ($)
|
Total ($)
|
Ordinary
income ($)
|
Tax-exempt
income ($)
|
Long-term
capital gains ($)
|
Total ($)
|
36
|
6,329,722
|
577,971
|
6,907,729
|
—
|
6,662,361
|
594,604
|
7,256,965
|
Short-term capital gain
distributions, if any, are considered ordinary income distributions for tax purposes.
At October 31, 2019, the components
of distributable earnings on a tax basis were as follows:
Undistributed
ordinary income ($)
|
Undistributed tax-
exempt income ($)
|
Undistributed
long-term
capital gains ($)
|
Capital loss
carryforwards ($)
|
Net unrealized
appreciation ($)
|
294
|
584,308
|
115,207
|
—
|
13,639,807
|
At October 31, 2019, 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) ($)
|
Net unrealized
appreciation ($)
|
206,002,327
|
13,678,924
|
(39,117)
|
13,639,807
|
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 $31,031,812 and $31,318,967, respectively, for the year ended October 31, 2019. The amount of purchase and
sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Interfund
lending
Pursuant to an exemptive order
granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and,
except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject
to certain restrictions.
Interfund loans are subject to the
risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject
to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund did not borrow or lend
money under the Interfund Program during the year ended October 31, 2019.
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
29
|
Notes to Financial Statements (continued)
October 31, 2019
Note 7. Line of credit
The Fund has access to a
revolving credit facility with a syndicate of banks led by Citibank, N.A., HSBC Bank USA, N.A. and JPMorgan Chase Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for
other temporary or emergency purposes. The credit facility, which is a collective agreement between the Fund and certain other funds managed by the Investment Manager or an affiliated investment manager, severally and
not jointly, permits collective borrowings up to $1 billion. Interest is charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the
one-month LIBOR rate and (iii) the overnight bank funding rate, plus in each case, 1.00%. Each borrowing under the credit facility matures no later than 60 days after the date of borrowing. The Fund also pays a
commitment fee equal to its pro rata share of the unused amount of the credit facility at a rate of 0.15% per annum. The commitment fee is included in other expenses in the Statement of Operations. This agreement
expires annually in December unless extended or renewed.
The Fund had no borrowings during
the year ended October 31, 2019.
Note 8. Significant
risks
Credit risk
Credit risk is the risk that the
value of debt securities in the Fund’s portfolio may decline because the issuer defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations,
such as making payments to the Fund when due. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. Lower rated or unrated debt instruments held by the Fund may
present increased credit risk as compared to higher-rated debt instruments.
Geographic concentration risk
Because the Fund invests
substantially in municipal securities issued by the state identified in the Fund’s name and political sub-divisions of that state, the Fund will be particularly affected by adverse tax, legislative, regulatory,
demographic or political changes as well as changes impacting the state’s financial, economic or other condition and prospects. In addition, because of the relatively small number of issuers of tax-exempt
securities in the state, the Fund may invest a higher percentage of assets in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly. The value of municipal and other
securities owned by the Fund also may be adversely affected by future changes in federal or state income tax laws.
Interest rate risk
Interest rate risk is the risk of
losses attributable to changes in interest rates. In general, if prevailing interest rates rise, the values of debt securities tend to fall, and if interest rates fall, the values of debt securities tend to rise.
Actions by governments and central banking authorities can result in increases in interest rates. Increasing interest rates may negatively affect the value of debt securities held by the Fund, resulting in a negative
impact on the Fund’s performance and net asset value per share. In general, the longer the maturity or duration of a debt security, the greater its sensitivity to changes in interest rates.
Liquidity risk
Liquidity risk is the risk
associated with a lack of marketability of investments which may make it difficult to sell the investment at a desirable time or price. Changing regulatory, market or other conditions or environments (for example, the
interest rate or credit environments) may adversely affect the liquidity of the Fund’s investments. The Fund may have to accept a lower selling price for the holding, sell other investments, or forego another,
more appealing investment opportunity. Generally, the less liquid the market at the time the Fund sells a portfolio investment, the greater the risk of loss or decline of value to the Fund. A less liquid market can
lead to an increase in Fund redemptions, which may negatively impact Fund performance and net asset value per share, including, for example, if the Fund is forced to sell securities in a down market.
30
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Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
Notes to Financial Statements (continued)
October 31, 2019
Non-diversification risk
A non-diversified fund is permitted
to invest a greater percentage of its total assets in fewer issuers than a diversified fund. This increases the risk that a change in the value of any one investment held by the Fund could affect the overall value of
the Fund more than it would affect that of a diversified fund holding a greater number of investments. Accordingly, the Fund’s value will likely be more volatile than the value of a more diversified fund.
Shareholder concentration risk
At October 31, 2019, one
unaffiliated shareholder of record owned 76.7% of the outstanding shares of the Fund in one or more accounts. The Fund has no knowledge about whether any portion of those shares was owned beneficially. Subscription
and redemption activity by concentrated accounts may have a significant effect on the operations of the Fund. In the case of a large redemption, the Fund may be forced to sell investments at inopportune times,
including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of less liquid positions. Large redemptions could result in decreased economies of scale and increased operating
expenses for non-redeeming Fund shareholders.
Note 9. Subsequent
events
Management has evaluated the
events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 10. Information
regarding pending and settled legal proceedings
Ameriprise Financial and certain
of its affiliates have historically been involved in a number of legal, arbitration and regulatory proceedings, including routine litigation, class actions, and governmental actions, concerning matters arising in
connection with the conduct of their business activities. Ameriprise Financial believes that the Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject
of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with
the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and regulatory matters that relate to
Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that
these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe
proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to
uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines,
penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial.
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
31
|
Report of Independent Registered Public
Accounting Firm
To the Board of Trustees of Columbia
Funds Series Trust I and Shareholders of Columbia Massachusetts Intermediate Municipal Bond Fund
Opinion on the Financial
Statements
We have audited the accompanying
statement of assets and liabilities, including the portfolio of investments, of Columbia Massachusetts Intermediate Municipal Bond Fund (one of the funds constituting Columbia Funds Series Trust I, hereafter referred
to as the "Fund") as of October 31, 2019, the related statement of operations for the year ended October 31, 2019, the statement of changes in net assets for each of the two years in the period ended October 31, 2019,
including the related notes, and the financial highlights for each of the periods indicated therein (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 October 31, 2019, 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 October 31, 2019 and the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the
responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of
the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these
financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud.
Our audits included performing
procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test
basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating
the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2019 by correspondence with the custodian and brokers. We believe that our audits
provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Minneapolis, Minnesota
December 20, 2019
We have served as the auditor of
one or more investment companies within the Columbia Funds Complex since 1977.
32
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Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
Federal Income Tax
Information
(Unaudited)
The Fund hereby designates the
following tax attributes for the fiscal year ended October 31, 2019. Shareholders will be notified in early 2020 of the amounts for use in preparing 2019 income tax returns.
Capital
gain
dividend
|
Exempt-
interest
dividends
|
$142,029
|
99.99%
|
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.
Exempt-interest dividends. The
percentage of net investment income distributed during the fiscal year that qualifies as exempt-interest dividends for federal income tax purposes. A portion of the income may be subject to federal alternative minimum
tax.
TRUSTEES AND
OFFICERS
The Board oversees the Fund’s
operations and appoints 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 Trustees 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. The year set forth beneath Length of Service
in the table below is the year in which the Trustee was first appointed or elected as Trustee to any Fund currently in the Columbia Funds Complex or a predecessor thereof. Under current Board policy, members serve
terms of indefinite duration.
Independent trustees
Name, address, year of birth
|
Position held with the Trust and length of service
|
Principal occupation(s) during the past five years and other relevant professional experience
|
Number of Funds in the Columbia Fund Complex overseen
|
Other directorships held by Trustee during the past five years
|
Janet Langford Carrig
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1957
|
Trustee
1996
|
Senior Vice President, General Counsel and Corporate Secretary, ConocoPhillips (independent energy company), September 2007-October 2018
|
71
|
Director, EQT Corporation (natural gas producer)
|
Douglas A. Hacker
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1955
|
Trustee and Chairman of the Board
1996
|
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
|
71
|
Director, Spartan Nash Company (food distributor); Director, Aircastle Limited (aircraft leasing); 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
|
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
33
|
TRUSTEES AND OFFICERS (continued)
Independent trustees (continued)
Name, address, year of birth
|
Position held with the Trust and length of service
|
Principal occupation(s) during the past five years and other relevant professional experience
|
Number of Funds in the Columbia Fund Complex overseen
|
Other directorships held by Trustee during the past five years
|
Nancy T. Lukitsh
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1956
|
Trustee
2011
|
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
|
71
|
None
|
David M. Moffett
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1952
|
Trustee
2011
|
Retired. Consultant to Bridgewater and Associates
|
71
|
Director, CSX Corporation (transportation suppliers); Director, Genworth Financial, Inc. (financial and insurance products and services);
Director, PayPal Holdings Inc. (payment and data processing services); Trustee, University of Oklahoma Foundation; former Director, eBay Inc. (online trading community), 2007-2015; and former Director, CIT Bank, CIT
Group Inc. (commercial and consumer finance), 2010-2016
|
John J. Neuhauser
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1943
|
Trustee
1984
|
President, Saint Michael’s College, August 2007-June 2018; Director or Trustee of several non-profit organizations, including University
of Vermont Medical Center; Academic Vice President and Dean of Faculties, Boston College, August 1999-October 2005; University Professor, Boston College, November 2005-August 2007
|
71
|
Director, Liberty All-Star Equity Fund and Liberty All- Star Growth Fund (closed-end funds)
|
Patrick J. Simpson
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1944
|
Trustee
2000
|
Of Counsel, Perkins Coie LLP (law firm) since 2015; Partner, Perkins Coie LLP, 1988-2014
|
71
|
Former Director, M Fund, Inc. (M Funds mutual fund family), July 2018-July 2019
|
Consultants to the Independent
Trustees*
Name, address, year of birth
|
Position held with the Trust 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
|
J. Kevin Connaughton
c/o Columbia
Management Investment
Advisers, LLC,
225 Franklin Street
Mail Drop BX32 05228,
Boston, MA 02110
1964
|
Independent Trustee Consultant
2016
|
Independent Trustee Consultant, Columbia Funds since March 2016; Adjunct Professor of Finance, Bentley
University since November 2017; Managing Director and General Manager of Mutual Fund Products, Columbia Management Investment Advisers, LLC, May 2010-February 2015; President, Columbia Funds, 2009-2015; and senior
officer of Columbia Funds and affiliated funds, 2003-2015
|
71
|
Director, The Autism Project since March 2015; former Trustee, New Century Portfolios, March 2015-December 2017; formerly on
Board of Governors, Gateway Healthcare, January 2016 – December 2017
|
34
|
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
TRUSTEES AND OFFICERS (continued)
Consultants to the Independent Trustees* (continued)
Name, address, year of birth
|
Position held with the Trust 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
|
Olive Darragh
c/o Columbia
Management Investment
Advisers, LLC,
225 Franklin Street,
Mail Drop BX32 05228,
Boston, MA 02110
1962
|
Independent Trustee Consultant 2019
|
Independent Trustee Consultant, Columbia Funds since June 2019; Managing Director of Darragh Inc. (a strategy and talent management consulting
firm) since 2010; Founder and CEO, Zolio (an investment management talent identification platform) since 2004; Partner, Tudor Investments, 2004-2010; Senior Partner, McKinsey & Company, 2001-2004
|
71
|
Director, University of Edinburgh Business School; former Director, Boston Public Library Foundation
|
Natalie A. Trunow
c/o Columbia
Management Investment
Advisers, LLC,
225 Franklin Street
Mail Drop BX32 05228,
Boston, MA 02110
1967
|
Independent Trustee Consultant
2016
|
Independent Trustee Consultant, Columbia Funds since September 2016; Chief Executive Officer, Millennial
Portfolio Solutions LLC (asset management and consulting services) since January 2016; Director of Investments, Casey Family Programs, April 2016-September 2016; Senior Vice President and Chief Investment Officer,
Calvert Investments, August 2008-January 2016; Section Head and Portfolio Manager, General Motors Asset Management, June 1997-August 2008
|
71
|
Director, Health Services for Children with Special Needs, Inc.; Director, Consumer Credit Counseling Services (formerly
Guidewell Financial Solutions)
|
*
|
J. Kevin Connaughton was appointed consultant to the Independent Trustees effective March 1, 2016. Olive Darragh was appointed consultant to the Independent Trustees effective June
10, 2019. Natalie A. Trunow was appointed consultant to the Independent Trustees effective September 1, 2016. Shareholders of the Funds are expected to be asked to elect each of Mr. Connaughton, Ms. Darragh and Ms.
Trunow as a Trustee at a future shareholder meeting.
|
Interested trustee affiliated with
Investment Manager*
Name, address, year of birth
|
Position held with the Trust 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
|
William F. Truscott
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
1960
|
Trustee
2012
|
Chairman of the Board and President, Columbia Management Investment Advisers, LLC since May 2010 and
February 2012, respectively; Chief Executive Officer, Global Asset Management, Ameriprise Financial, Inc. since September 2012 (previously Chief Executive Officer, U.S. Asset Management & President, Annuities, May
2010-September 2012); Director and Chief Executive Officer, Columbia Management Investment Distributors, Inc. since May 2010 and February 2012, respectively; Chairman of the Board and Chief Executive Officer,
RiverSource Distributors, Inc. since 2006; Director, Threadneedle Asset Management Holdings, SARL since 2014; President and Chief Executive Officer, Ameriprise Certificate Company, 2006-August 2012
|
192
|
Chairman of the Board, Columbia Management Investment Advisers, LLC since May 2010; Director, Columbia Management Investment
Distributors, Inc. since May 2010; former Director, Ameriprise Certificate Company, August 2006 - January 2013
|
*
|
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, visiting columbiathreadneedleus.com/investor/ or contacting your
financial intermediary.
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
35
|
TRUSTEES AND OFFICERS (continued)
The Board has appointed 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, including principal occupations during the past five years, although their specific titles may have varied over the
period. In addition to Mr. Truscott, who is Senior Vice President, 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
|
Christopher O. Petersen
5228 Ameriprise
Financial Center
Minneapolis, MN 55474
Born 1970
|
President and Principal Executive Officer (2015)
|
Vice President and Lead Chief Counsel, Ameriprise Financial, Inc. since January 2015 (previously Vice President and Chief Counsel, January
2010 - December 2014); officer of Columbia Funds and affiliated funds since 2007.
|
Michael G. Clarke
225 Franklin Street
Boston, MA 02110
Born 1969
|
Chief Financial Officer (Principal Financial Officer) (2009) and Senior Vice President (2019)
|
Vice President, Head of North American Operations, and Co-Head of Global Operations, Columbia Management Investment Advisers, LLC, since June
2019 (previously Vice President – Accounting and Tax, May 2010 – May 2019); senior officer of Columbia Funds and affiliated funds since 2002 (previously Treasurer and Chief Accounting Officer, January 2009
- January 2019 and December 2015 - January 2019, respectively).
|
Joseph Beranek
5890 Ameriprise
Financial Center
Minneapolis, MN 55474
Born 1965
|
Treasurer and Chief Accounting Officer (Principal Accounting Officer) (2019)
|
Vice President — Mutual Fund Accounting and Financial Reporting, Columbia Management Investment Advisers, LLC, since December 2018 and
March 2017, respectively (previously Vice President — Pricing and Corporate Actions, May 2010 - March 2017).
|
Paul B. Goucher
485 Lexington Avenue
New York, NY 10017
Born 1968
|
Senior Vice President (2011) and Assistant Secretary (2008)
|
Senior Vice President and Assistant General Counsel, Ameriprise Financial, Inc. since January 2017 (previously Vice President and Lead Chief
Counsel, November 2008 - January 2017 and January 2013 - January 2017, respectively); Vice President, Chief Legal Officer and Assistant Secretary, Columbia Management Investment Advisers, LLC since March 2015
(previously Vice President and Assistant Secretary, May 2010 – March 2015).
|
Thomas P. McGuire
225 Franklin Street
Boston, MA 02110
Born 1972
|
Senior Vice President and Chief Compliance Officer (2012)
|
Vice President — Asset Management Compliance, Ameriprise Financial, Inc., since May 2010; Chief Compliance Officer, Ameriprise
Certificate Company since September 2010.
|
Colin Moore
225 Franklin Street
Boston, MA 02110
Born 1958
|
Senior Vice President (2010)
|
Executive Vice President and Global Chief Investment Officer, Ameriprise Financial, Inc., since July 2013; Executive Vice President and Global
Chief Investment Officer, Columbia Management Investment Advisers, LLC since July 2013.
|
Ryan C. Larrenaga
225 Franklin Street
Boston, MA 02110
Born 1970
|
Senior Vice President (2017), Chief Legal Officer (2017), and Secretary (2015)
|
Vice President and Chief Counsel, Ameriprise Financial, Inc. since August 2018 (previously Vice President and Group Counsel, August 2011 -
August 2018); officer of Columbia Funds and affiliated funds since 2005.
|
Michael E. DeFao
225 Franklin Street
Boston, MA 02110
Born 1968
|
Vice President (2011) and Assistant Secretary (2010)
|
Vice President and Chief Counsel, Ameriprise Financial, Inc. since May 2010.
|
Lyn Kephart-Strong
5228 Ameriprise
Financial Center
Minneapolis, MN 55474
Born 1960
|
Vice President (2015)
|
President, Columbia Management Investment Services Corp. since October 2014; Vice President & Resolution Officer,
Ameriprise Trust Company since August 2009.
|
36
|
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
Board Consideration
and Approval of Management
Agreement
On June 12, 2019, the Board of
Trustees (the Board) and the Trustees who are not interested persons (as defined in the Investment Company Act of 1940) (the Independent Trustees) of Columbia Funds Series Trust I (the Trust) unanimously approved the
continuation of the Management Agreement (the Management Agreement) with Columbia Management Investment Advisers, LLC (the Investment Manager) with respect to Columbia Massachusetts Intermediate Municipal Bond Fund
(the Fund) (formerly, Columbia AMT-Free Massachusetts Intermediate Muni Bond Fund), a series of the Trust. As detailed below, the Board’s Advisory Fees and Expenses Committee (the Committee) and the Board met on
multiple occasions to review and discuss, among themselves, with the management team of the Investment Manager and with an independent fee consultant, materials provided by the Investment Manager, the independent fee
consultant and others before determining to approve the continuation of the Management Agreement.
In connection with their
deliberations regarding the continuation of the Management Agreement, the Committee and the Board evaluated materials requested from the Investment Manager regarding the Fund and the Management Agreement, and
discussed these materials with representatives of the Investment Manager at Committee meetings held on March 5, 2019, April 25, 2019 and June 11, 2019 and at Board meetings held on March 6, 2019 and June 12, 2019. In
addition, the Board and its various committees consider matters bearing on the Management Agreement at other meetings throughout the year and in prior years and meet regularly with senior management of the Trust and
the Investment Manager. Through the Board’s Investment Oversight Committees, Trustees also meet with selected portfolio managers of the funds the Trustees oversee and with other investment personnel at various
times throughout the year. The Committee and the Board also consulted with the independent fee consultant, Fund counsel and the Independent Trustees’ independent legal counsel, who advised on various matters
with respect to the Committee’s and the Board’s considerations and otherwise assisted the Committee and the Board in their deliberations. On June 11, 2019, the Committee recommended that the Board approve
the continuation of the Management Agreement. On June 12, 2019, the Board, including the Independent Trustees, voting separately, unanimously approved the continuation of the Management Agreement for the Fund.
The Committee and the Board
considered all information that they, their legal counsel or the Investment Manager believed reasonably necessary to evaluate and to determine whether to recommend for approval or approve the continuation of the
Management Agreement. The information and factors considered by the Committee and the Board in recommending for approval or approving the continuation of the Management Agreement for the Fund included the
following:
•
|
Information on the investment performance of the Fund relative to the performance of a group of mutual funds determined to be comparable to the Fund by an independent third-party data provider, as well as
performance relative to benchmarks;
|
•
|
Information on the Fund’s management fees and total expenses, including information comparing the Fund’s expenses to those of a group of comparable mutual funds, as determined by the independent
third-party data provider;
|
•
|
The Investment Manager’s agreement to contractually limit or cap total operating expenses for the Fund through February 29, 2020 so that total operating expenses (excluding certain fees and expenses, such as
transaction costs and certain other investment related expenses, interest, taxes, acquired fund fees and expenses, and infrequent and/or unusual expenses) would not exceed a specified annual rate, as a percentage of
the Fund’s net assets;
|
•
|
The terms and conditions of the Management Agreement;
|
•
|
The current and proposed terms and conditions of other agreements and arrangements with affiliates of the Investment Manager relating to the operations of the Fund, including agreements with respect to the provision
of distribution, transfer agency and shareholder services to the Fund;
|
•
|
Descriptions of various functions performed by the Investment Manager under the Management Agreement, including portfolio management and portfolio trading practices;
|
•
|
Information regarding the management fees of similarly-managed portfolios of other clients of the Investment Manager, including institutional accounts and collective trusts;
|
•
|
Information regarding the reputation, regulatory history and resources of the Investment Manager, including information regarding senior management, portfolio managers and other personnel;
|
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
37
|
Board Consideration and Approval of
Management
Agreement (continued)
•
|
Information regarding the capabilities of the Investment Manager with respect to compliance monitoring services, including an assessment of the Investment Manager’s compliance system by the Fund’s Chief
Compliance Officer; and
|
•
|
The profitability to the Investment Manager and its affiliates from their relationships with the Fund.
|
Nature, extent and quality of
services provided under the Management Agreement
The Committee and the Board
considered the nature, extent and quality of services provided to the Fund by the Investment Manager and its affiliates under the Management Agreement and under separate agreements for the provision of transfer agency
and shareholder services, and the resources dedicated to the Fund and the other Columbia Funds by the Investment Manager and its affiliates. The Committee and the Board considered, among other things, the Investment
Manager’s ability to attract, motivate and retain highly qualified research, advisory and supervisory investment professionals (including compensation programs for personnel involved in fund management,
reputation and other attributes), the portfolio management services provided by those investment professionals, and the quality of the Investment Manager’s investment research capabilities and trade execution
services. The Committee and the Board also considered the potential benefits to shareholders of investing in a mutual fund that is part of a fund complex offering exposure to a variety of asset classes and investment
disciplines and providing a variety of fund and shareholder services.
The Committee and the Board also
considered the professional experience and qualifications of the senior personnel of the Investment Manager, which included consideration of the Investment Manager’s experience with funds using an investment
strategy similar to that used by the Investment Manager for the Fund. The Committee and the Board noted the compliance programs of and the compliance-related resources provided to the Fund by the Investment Manager
and its affiliates and the resources dedicated by the Investment Manager and its affiliates to risk management, and considered the Investment Manager’s ability to provide administrative services to the Fund and
coordinate the activities of the Fund’s other service providers. After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the
nature, extent and quality of the services provided to the Fund under the Management Agreement supported the continuation of the Management Agreement.
Investment performance
The Committee and the Board
reviewed information about the performance of the Fund over various time periods, including performance information relative to benchmarks, information that compared the performance of the Fund to the performance of a
group of comparable mutual funds as determined by the independent third-party data provider, and information and analysis provided by the independent fee consultant. The Committee and the Board also reviewed a
description of the third party’s methodology for identifying the Fund’s peer groups for purposes of performance and expense comparisons. Although the Fund’s performance lagged that of a relevant peer
group for certain (although not necessarily all) periods, the Committee and the Board concluded that other factors relevant to performance were sufficient, in light of other considerations, to support continuation of
the Management Agreement. Those factors included one or more of the following: (i) that the Fund’s performance, although lagging in certain recent periods, was stronger over the longer term; (ii) that the
underperformance was attributable, to a significant extent, to investment decisions that were reasonable and consistent with the Fund’s investment strategy and policies and that the Fund was performing within a
reasonable range of expectations, given those investment decisions, market conditions and the Fund’s investment strategy; (iii) that the Fund’s performance was competitive when compared to other relevant
performance benchmarks or peer groups; and (iv) that the Investment Manager had taken or was taking steps designed to help improve the Fund’s investment performance, including, but not limited to, replacing
portfolio managers, enhancing the resources supporting the portfolio managers, or modifying investment strategies.
The Committee and the Board noted
that, through December 31, 2018, the Fund’s performance was in the seventy-first, sixty-third and forty-sixth percentile (where the best performance would be in the first percentile) of its category selected by
the independent third-party data provider for the purposes of performance comparisons for the one-, three- and five-year periods, respectively.
38
|
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
Board Consideration and Approval of
Management
Agreement (continued)
The Committee and the Board also considered the
Investment Manager’s performance and reputation generally, the Investment Manager’s historical responsiveness to Board concerns about performance, and the Investment Manager’s willingness to take
steps intended to improve performance. After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the performance of the Fund and the
Investment Manager was sufficient, in light of other considerations, to support the continuation of the Management Agreement.
Investment Management fee rates
and other expenses
The Committee and the Board
considered the management fees charged to the Fund under the Management Agreement as well as the total expenses incurred by the Fund. In assessing the reasonableness of the fees under the Management Agreement, the
Committee and the Board considered, among other information, the Fund’s total expense ratio as a percentage of average daily net assets. The Committee and the Board considered data provided by the independent
third-party data provider and the independent fee consultant. The Committee and the Board noted that, as of December 31, 2018, the Fund’s actual management fee and net total expense ratio were ranked in the
third and second quintiles, respectively, (where the lowest fees and expenses would be in the first quintile) against the Fund’s expense universe as determined by the independent third-party data provider for
purposes of expense comparison. The Committee and the Board also took into account the fee waiver and expense limitation arrangements agreed to by the Investment Manager, as noted above.
The Committee and the Board also
received and considered information about the management fees charged by the Investment Manager to institutional accounts. In considering the fees charged to those accounts, the Committee and the Board took into
account, among other things, the Investment Manager’s representations about the differences between managing mutual funds as compared to other types of accounts, including differences in the services provided,
differences in the risk profile of such business for the Investment Manager and the additional resources required to manage mutual funds effectively. The Committee and the Board also received and considered
information about the fees charged by the Investment Manager for sub-advisory services it provides to comparable unaffiliated funds. In evaluating the Fund’s management fees, the Committee and the Board also
took into account the demands, complexity and quality of the investment management of the Fund.
After reviewing these and related
factors, the Committee and the Board concluded, within the context of their overall conclusions, that the management fee rates and expenses of the Fund, in light of other considerations, supported the continuation of
the Management Agreement.
Costs of services provided and
profitability
The Committee and the Board also
took note of the costs the Investment Manager and its affiliates incur in connection with the services provided and the profitability to the Investment Manager and its affiliates from their relationships with the
Fund, and the efforts undertaken by the Investment Manager and its affiliates to manage efficiently their costs to provide such services.
The Committee and the Board also
considered the compensation directly or indirectly received by the Investment Manager’s affiliates in connection with their relationships with the Fund. The Committee and the Board reviewed information provided
by management as to the profitability to the Investment Manager and its affiliates of their relationships with the Fund, information about the allocation of expenses used to calculate profitability, and comparisons of
profitability levels realized in 2018 to profitability levels realized in 2017. When reviewing profitability, the Committee and the Board also considered court cases in which adviser profitability was an issue in
whole or in part, the performance of similarly managed funds, the performance of the Fund, and the expense ratio of the Fund. In addition, the Committee and the Board considered information provided by the Investment
Manager regarding the Investment Manager’s financial condition and comparing its profitability to that of other asset management firms that are, or are subsidiaries of, publicly traded companies. In this regard,
the Committee and the Board also considered data provided by the independent fee consultant.
After reviewing these and related
factors, the Committee and the Board concluded, within the context of their overall conclusions, that the costs of services provided and the profitability to the Investment Manager and its affiliates from their
relationships with the Fund supported the continuation of the Management Agreement.
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
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39
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Board Consideration and Approval of
Management
Agreement (continued)
Economies of scale
The Committee and the Board
considered the potential existence of economies of scale in the provision by the Investment Manager of services to the Fund, to groups of related funds, and to the Investment Manager’s investment advisory
clients as a whole, and whether those economies of scale were shared with the Fund through breakpoints in investment management fees or other means, such as expense limitation arrangements and additional investments
by the Investment Manager in investment, trading, compliance and other resources. The Committee and the Board noted that the management fee schedules for the Fund contained breakpoints that would reduce the fee rate
on assets above specified threshold levels.
In considering these matters, the
Committee and the Board also considered the costs of the services provided and the profitability to the Investment Manager and its affiliates from their relationships with the Fund, as noted above. After reviewing
these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the extent to which any economies of scale were expected to be shared with the Fund supported the
continuation of the Management Agreement.
Other benefits to the Investment
Manager
The Committee and the Board
received and considered information regarding “fall-out” or ancillary benefits received by the Investment Manager and its affiliates as a result of their relationships with the Fund, such as the engagement
of the Investment Manager’s affiliates to provide distribution, transfer agency and shareholder services to the Fund. In this regard, among other matters, the Committee and the Board considered that the
Fund’s distributor retains a portion of the distribution fees from the Fund and receives a portion of the sales charges on sales or redemptions of certain classes of shares of the Fund. The Committee and the
Board also considered the benefits of research made available to the Investment Manager by reason of brokerage commissions generated by the Fund’s securities transactions, and reviewed information about the
Investment Manager’s practices with respect to considering brokerage and research services when allocating portfolio transactions. In this connection, the Board also noted that the amount of research made
available to the Investment Manager by reason of brokerage commissions had been declining over time, and may decline further. The Committee and the Board recognized that the Investment Manager’s profitability
would be somewhat lower without these benefits.
Conclusion
The Committee and the Board
reviewed all of the above considerations in reaching their decisions to recommend or approve the continuation of the Management Agreement. In their deliberations, the Trustees did not identify any particular
information that was all-important or controlling, and individual Trustees may have attributed different weights to the various factors. Based on their evaluation of all factors that they deemed to be material,
including those factors described above, and assisted by the advice of independent legal counsel, the Board, including the Independent Trustees, voting separately, unanimously approved the continuation of the
Management Agreement.
40
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Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2019
|
[THIS PAGE INTENTIONALLY LEFT
BLANK]
[THIS PAGE INTENTIONALLY LEFT BLANK]
[THIS PAGE INTENTIONALLY LEFT BLANK]
Columbia Massachusetts Intermediate Municipal Bond
Fund
P.O. Box 219104
Kansas City, MO 64121-9104
Please read and consider the
investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus and summary prospectus, which contains this and other important information about the Fund, go to
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments
(Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2019 Columbia Management Investment
Advisers, LLC.
columbiathreadneedleus.com/investor/
Annual Report
October 31, 2019
Columbia Strategic
New York Municipal Income Fund
Beginning on January 1, 2021, as
permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports like this one will no longer be sent by mail, unless you
specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (columbiathreadneedleus.com/investor/), and each time a report is posted you will be notified
by mail and provided with a website address to access the report.
If you have already elected to
receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically
at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, for Fund shares held directly with the Fund, by calling 800.345.6611 or by enrolling in “eDelivery” by logging
into your account at columbiathreadneedleus.com/investor/.
You may elect to receive all future
reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue receiving paper copies of your shareholder reports. If you
invest directly with the Fund, you can call 800.345.6611 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive paper reports will apply to all Columbia
Funds held in your account if you invest through a financial intermediary or all Columbia Funds held with the fund complex if you invest directly with the Fund.
Not FDIC Insured • No bank
guarantee • May lose value
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3
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5
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7
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8
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16
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34
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Columbia Strategic New York
Municipal Income Fund (the Fund) mails one shareholder report to each shareholder address, unless such shareholder elected to receive shareholder reports from the Fund electronically. If you would like more than one
report, please call shareholder services at 800.345.6611 and additional reports will be sent to you.
Proxy voting policies and
procedures
The policy of the Board of Trustees
is to vote the proxies of the companies in which the Fund holds investments consistent with the procedures as stated in the Statement of Additional Information (SAI). You may obtain a copy of the SAI without charge by
calling 800.345.6611; contacting your financial intermediary; visiting columbiathreadneedleus.com/investor/; or searching the website of the Securities and Exchange Commission (SEC) at sec.gov. Information regarding
how the Fund voted proxies relating to portfolio securities is filed with the SEC by August 31st for the most recent 12-month period ending June 30th of that year, and is available without charge by visiting
columbiathreadneedleus.com/investor/, or searching the website of the SEC at sec.gov.
Quarterly schedule of
investments
The Fund files a complete schedule
of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT, and for reporting periods ended prior to March 31, 2019, on Form N-Q. The Fund’s Form N-Q and 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-Q or Form N-PORT, can also be obtained without charge, upon request, by calling
800.345.6611.
Additional Fund information
For more information about the
Fund, please visit columbiathreadneedleus.com/investor/ or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 7 p.m. Eastern time.
Fund investment manager
Columbia Management Investment Advisers, LLC (the
Investment Manager)
225 Franklin Street
Boston, MA 02110
Fund distributor
Columbia Management Investment Distributors,
Inc.
225 Franklin Street
Boston, MA 02110
Fund transfer agent
Columbia Management Investment Services Corp.
P.O. Box 219104
Kansas City, MO 64121-9104
Columbia Strategic New York Municipal Income
Fund | Annual Report 2019
Investment objective
The Fund
seeks total return, with a focus on income exempt from federal income tax and New York individual income tax and capital appreciation.
Portfolio management
Douglas White, CFA
Lead Portfolio Manager
Managed Fund since 2018
Catherine Stienstra
Portfolio Manager
Managed Fund since 2010
Anders Myhran, CFA
Portfolio Manager
Managed Fund since 2016
Average annual total returns (%) (for the period ended October 31, 2019)
|
|
|
Inception
|
1 Year
|
5 Years
|
10 Years
|
Class A
|
Excluding sales charges
|
09/26/86
|
9.37
|
3.53
|
4.57
|
|
Including sales charges
|
|
6.10
|
2.91
|
4.26
|
Advisor Class*
|
03/19/13
|
9.66
|
3.79
|
4.75
|
Class C
|
Excluding sales charges
|
08/01/97
|
9.04
|
3.07
|
4.10
|
|
Including sales charges
|
|
8.04
|
3.07
|
4.10
|
Institutional Class*
|
09/01/11
|
9.80
|
3.79
|
4.79
|
Institutional 2 Class*
|
11/08/12
|
9.84
|
3.81
|
4.77
|
Institutional 3 Class*
|
03/01/17
|
9.71
|
3.70
|
4.66
|
Bloomberg Barclays New York Municipal Bond Index
|
|
9.09
|
3.38
|
4.23
|
Bloomberg Barclays Municipal Bond Index
|
|
9.42
|
3.55
|
4.40
|
Returns for Class A shares are shown
with and without the maximum initial sales charge of 3.00%. Returns for Class C shares are shown with and without the 1.00% contingent deferred sales charge for the first year only. The Fund’s other share
classes are not subject to sales charges and have limited eligibility. Please see the Fund’s prospectus for details. Performance for different share classes will vary based on differences in sales charges and
fees associated with each share class. All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the
redemption of Fund shares. Performance results reflect the effect of any fee waivers or reimbursements of Fund expenses by Columbia Management Investment Advisers, LLC and/or any of its affiliates. Absent these fee
waivers or expense reimbursement arrangements, performance results would have been lower.
The performance information shown
represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than
their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by contacting your financial
intermediary, visiting columbiathreadneedleus.com/investor/ or calling 800.345.6611.
*
|
The returns shown for periods prior to the share class inception date (including returns for the Life of the Fund, if shown, which are since Fund inception) include the returns of the Fund’s oldest share
class. These returns are adjusted to reflect any higher class-related operating expenses of the newer share classes, as applicable. Please visit
columbiathreadneedleus.com/investor/investment-products/mutual-funds/appended-performance for more information.
|
The Bloomberg Barclays New York
Municipal Bond Index is a subset of the Barclays Municipal Bond Index consisting solely of bonds issued by obligors located in the state of New York.
The Bloomberg Barclays Municipal
Bond Index is an unmanaged index considered representative of the broad market for investment-grade, tax-exempt bonds with a maturity of at least one year.
Indices are not available for
investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes or other expenses of investing. Securities in the Fund may not match those in an index.
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
3
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Fund at a Glance (continued)
Performance of a hypothetical $10,000 investment (October 31, 2009 — October 31, 2019)
The chart above shows the change in
value of a hypothetical $10,000 investment in Class A shares of Columbia Strategic New York Municipal Income Fund during the stated time period, and does not reflect the deduction of taxes that a shareholder may pay
on Fund distributions or on the redemption of Fund shares.
Quality breakdown (%) (at October 31, 2019)
|
AAA rating
|
2.2
|
AA rating
|
44.8
|
A rating
|
33.2
|
BBB rating
|
13.0
|
BB rating
|
0.8
|
Not rated
|
6.0
|
Total
|
100.0
|
Percentages indicated are based
upon total fixed income investments.
Bond ratings apply to the underlying
holdings of the Fund and not the Fund itself and are divided into categories ranging from highest to lowest credit quality, determined by using the middle rating of Moody’s, S&P and Fitch, after dropping the
highest and lowest available ratings. When ratings are available from only two rating agencies, the lower rating is used. When a rating is available from only one rating agency, that rating is used. When a bond is not
rated by any rating agency, it is designated as “Not rated.” Credit quality ratings assigned by a rating agency are subjective opinions, not statements of fact, and are subject to change, including daily.
The ratings assigned by credit rating agencies are but one of the considerations that the Investment Manager and/or Fund’s subadviser incorporates into its credit analysis process, along with such other
issuer-specific factors as cash flows, capital structure and leverage ratios, ability to de-leverage (repay) through free cash flow, quality of management, market positioning and access to capital, as well as such
security-specific factors as the terms of the security (e.g., interest rate and time to maturity) and the amount and type of any collateral.
4
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Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
Manager Discussion of Fund Performance
During the 12-month period that
ended October 31, 2019, the Fund’s Class A shares returned 9.37% excluding sales charges. The Fund’s Institutional Class shares returned 9.80%. During the same time period, the Fund’s benchmark, the
Bloomberg Barclays New York Municipal Bond Index, returned 9.09%, and the broader Bloomberg Barclays Municipal Bond Index returned 9.42%. The Fund outperformed its primary benchmark largely due to our emphasis on long
maturities and our decision to keep duration (interest-rate sensitivity) above that of the benchmark.
Market overview
Municipal bonds generated healthy
gains in the past 12 months, with nearly double-digit returns for both New York and the nation as a whole. After experiencing poor performance throughout most of 2018, municipals began to rebound in early November
2018, thanks to the combination of slowing global growth, volatility in higher risk assets, and expectations that the U.S. Federal Reserve (Fed) would adopt a more accommodative stance. In addition, various
geopolitical factors, including the U.S-China trade dispute, Brexit negotiations, and the U.S. government shutdown, fueled a “flight to quality” into bonds.
The rally persisted into the New
Year, leading to the largest first-quarter gain for the tax-exempt market since 2014. The first quarter of 2019 was also the sixth-best for municipals in the past 30 years, due in part to the backdrop of slow global
growth and the increasingly accommodative policies of the world’s major central banks. Supply-and-demand factors were highly favorable, as well. Municipal bond mutual funds experienced record inflows, fueled by
strong demand resulting from the cap on state and local tax deductions in the Tax Cuts and Jobs Act of 2017. At the same time, new-issue supply was limited. Trends in the U.S. Treasury market were also supportive, as
yields fell in anticipation of a more accommodative Fed. These developments propelled municipals higher through the spring and summer.
In early September 2019, however,
the typical seasonal increase in supply — which was exacerbated by historically low costs for issuers — caused the rally to stall. Municipals suffered their first month of negative returns in 2019 as a
result. The market continued to trade in an uneven fashion through the end of October 2019, as the Fed indicated that additional rate cuts would be dependent on incoming economic data.
New York municipal bonds
experienced modest underperformance
New York tax-exempt bonds
underperformed the national benchmark during the 12 months that ended October 31, 2019. The state’s market was dominated by a handful of higher quality issuers, which weighed on relative performance at a time in
which mid- to lower quality issues generally outperformed.
New York’s economy continued
to benefit from the record U.S. expansion and the concurrent gains in the financial markets. New York City, in particular, was helped by the market’s robust performance, but financial sector employment remained
below the peak levels achieved prior to the 2008-2009 recession. While overall job growth has been steady, the state’s unemployment rate exceeded the national average. This marked a notable difference compared
to other expansionary periods.
Contributors and detractors
The Fund outperformed its
benchmark largely due to our emphasis on long maturities and our decision to keep duration (interest-rate sensitivity) above that of the benchmark. This strategy helped the Fund capitalize on both falling yields and
the relative strength of longer term bonds.
The main contributors to
performance included an overweight in bonds with maturities of 17 years and above, as well as an underweight in the two- to eight-year range. Security selection in the 17- to 30-year area also contributed. With
respect to credit tiers, the Fund benefited from overweights in A and BBB rated issues and selection among AA, A and non-rated securities. Selection in local general obligations (GOs) and special-tax issues, as well
as in the transportation and housing sectors, further contributed.
The primary detractors included
overweights in one- to two-year maturities and selection in the eight- to 17-year range. Selection in AAA and BBB rated bonds also pressured results, as did selection in the leasing sector and an underweight in
special-tax issues. The combination of an overweight and selection in pre-refunded bonds was an additional detractor from relative performance. The Fund used U.S. Treasury futures for the purpose of duration
management, which also detracted modestly.
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
5
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Manager Discussion of Fund Performance (continued)
Fund positioning
The U.S. domestic economy
appeared to be showing signs of continued expansion near the end of the period, causing the prior rally in municipals to stall. Tax-revenue growth in most states — New York included — also began to slow
somewhat in this time, and housing prices in Manhattan and elsewhere started to soften. Although inflation appeared to remain in check, there were some indications of an increase in future expectations. In our view,
these trends suggested that economy may be at a crossroads between a potential slowdown or recession on one hand, and continued moderate growth on the other.
Our general strategy over the past
12 months was to focus on longer maturities and higher quality issues, but with a selective approach to finding opportunities in lower quality debt. Due to strong inflows into municipal bond mutual funds, and
high-yield funds in particular, we were able to take advantage of the demand for lower quality securities by selling holdings in the airports, education and industrial-development sectors. We redeployed the proceeds
into higher quality positions across a variety of sectors, including local GO debt, multifamily housing, tax-backed and water & sewer. With the economy slowing, we saw a larger probability of widening yield
spreads for lower quality bonds.
The Fund’s duration was above
the benchmark at the end of October 2019, as the probability of declining interest rates had increased. This strategy represented a modest change from the previous fiscal year, during which we held a more defensive
duration positioning due to the stronger domestic economy and a greater risk of higher interest rates.
Fixed-income securities present
issuer default risk. The Fund invests substantially in municipal securities and will be affected by tax, legislative, regulatory, demographic or political changes, as well as changes impacting a state’s financial, economic or other
conditions. A relatively small number of tax-exempt issuers may necessitate the Fund investing more heavily in a single issuer and, therefore, be more exposed to the risk of loss than a Fund that invests more broadly.
The value of the Fund’s portfolio may be more volatile than a more geographically diversified fund. Prepayment and extension risk exists because the timing of payments on a loan, bond or other investment may accelerate when interest rates fall or decelerate when interest rates rise
which may reduce investment opportunities and potential returns. A rise in interest rates may result in a price decline of fixed-income instruments held by the Fund, negatively impacting its performance and NAV. Falling rates may result in the Fund investing
in lower yielding debt instruments, lowering the Fund’s income and yield. These risks may be heightened for longer maturity and duration securities. Non-investment-grade (high-yield or junk) securities present greater price volatility and more risk to principal and income than higher rated securities. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. Federal and state tax rules apply to capital gain distributions and any gains or
losses on sales. Income may be subject to state or local taxes. Liquidity risk is associated with the difficulty of selling underlying investments at a desirable time or price. Investing in derivatives is a specialized activity that involves special risks, which may result in significant losses. See the Fund’s prospectus for more information on these and other
risks.
The views expressed in this report
reflect the current views of the respective parties. These views are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict, so actual outcomes and
results may differ significantly from the views expressed. These views are subject to change at any time based upon economic, market or other conditions and the respective parties disclaim any responsibility to update
such views. These views may not be relied on as investment advice and, because investment decisions for a Columbia fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf
of any particular Columbia fund. References to specific securities should not be construed as a recommendation or investment advice.
6
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Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
Understanding Your Fund’s
Expenses
(Unaudited)
As an investor, you incur two types
of costs. There are shareholder transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing fund costs, which generally include management fees,
distribution and/or service fees, and other fund expenses. The following information is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to help you compare these costs with
the ongoing costs of investing in other mutual funds.
Analyzing your Fund’s
expenses
To illustrate these ongoing
costs, we have provided examples and calculated the expenses paid by investors in each share class of the Fund during the period. The actual and hypothetical information in the table is based on an initial investment
of $1,000 at the beginning of the period indicated and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the
“Actual” column is calculated using the Fund’s actual operating expenses and total return for the period. You may use the Actual information, together with the amount invested, to estimate the
expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the results by the expenses paid during the period under
the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the
Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or
the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are
required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are
meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in
comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
May 1, 2019 — October 31, 2019
|
|
Account value at the
beginning of the
period ($)
|
Account value at the
end of the
period ($)
|
Expenses paid during
the period ($)
|
Fund’s annualized
expense ratio (%)
|
|
Actual
|
Hypothetical
|
Actual
|
Hypothetical
|
Actual
|
Hypothetical
|
Actual
|
Class A
|
1,000.00
|
1,000.00
|
1,038.70
|
1,021.17
|
4.11
|
4.08
|
0.80
|
Advisor Class
|
1,000.00
|
1,000.00
|
1,040.10
|
1,022.43
|
2.83
|
2.80
|
0.55
|
Class C
|
1,000.00
|
1,000.00
|
1,036.40
|
1,018.90
|
6.42
|
6.36
|
1.25
|
Institutional Class
|
1,000.00
|
1,000.00
|
1,040.00
|
1,022.43
|
2.83
|
2.80
|
0.55
|
Institutional 2 Class
|
1,000.00
|
1,000.00
|
1,040.20
|
1,022.53
|
2.73
|
2.70
|
0.53
|
Institutional 3 Class
|
1,000.00
|
1,000.00
|
1,040.30
|
1,022.74
|
2.52
|
2.50
|
0.49
|
Expenses paid during the period
are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period and then multiplied by the number of days in the Fund’s most recent fiscal
half year and divided by 365.
Expenses do not include fees and
expenses incurred indirectly by the Fund from its investment in underlying funds, including affiliated and non-affiliated pooled investment vehicles, such as mutual funds and exchange-traded funds.
Had Columbia Management Investment
Advisers, LLC and/or certain of its affiliates not waived/reimbursed certain fees and expenses, account value at the end of the period would have been reduced.
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
7
|
Portfolio of Investments
October 31, 2019
(Percentages represent value of
investments compared to net assets)
Investments in securities
Floating Rate Notes 0.4%
|
Issue Description
|
Effective
Yield
|
|
Principal
Amount ($)
|
Value ($)
|
Variable Rate Demand Notes 0.4%
|
Syracuse Industrial Development Agency(a),(b)
|
Revenue Bonds
|
Syracuse University
|
Series 2008A-2 (JPMorgan Chase Bank)
|
12/01/2037
|
1.300%
|
|
200,000
|
200,000
|
Triborough Bridge & Tunnel Authority(a),(b)
|
Refunding Revenue Bonds
|
General
|
Subordinated Series 2018-B-3 (State Street Bank and Trust Co.)
|
01/01/2032
|
1.290%
|
|
500,000
|
500,000
|
Total
|
700,000
|
Total Floating Rate Notes
(Cost $700,000)
|
700,000
|
|
Municipal Bonds 98.4%
|
Issue Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value ($)
|
Air Transportation 3.3%
|
New York City Industrial Development Agency(c)
|
Refunding Revenue Bonds
|
Trips Obligated Group
|
Series 2012A AMT
|
07/01/2028
|
5.000%
|
|
2,000,000
|
2,154,680
|
New York Transportation Development Corp.(c)
|
Revenue Bonds
|
Delta Air Lines, Inc., LaGuardia
|
Series 2018 AMT
|
01/01/2036
|
5.000%
|
|
2,000,000
|
2,372,980
|
Port Authority of New York & New Jersey
|
Revenue Bonds
|
JFK International Air Terminal
|
Series 2010
|
12/01/2042
|
6.000%
|
|
2,000,000
|
2,095,140
|
Total
|
6,622,800
|
Airport 0.8%
|
New York Transportation Development Corp.(c)
|
Revenue Bonds
|
LaGuardia Airport Terminal B Redevelopment Project
|
Series 2016 AMT
|
07/01/2046
|
4.000%
|
|
1,000,000
|
1,048,890
|
Niagara Frontier Transportation Authority(c)
|
Refunding Revenue Bonds
|
Buffalo Niagara International Airport
|
Series 2019 AMT
|
04/01/2039
|
5.000%
|
|
525,000
|
630,898
|
Total
|
1,679,788
|
Municipal Bonds (continued)
|
Issue Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value ($)
|
Charter Schools 1.4%
|
Build NYC Resource Corp.
|
Revenue Bonds
|
Bronx Charter School for Excellence
|
Series 2013
|
04/01/2033
|
5.000%
|
|
1,000,000
|
1,076,530
|
International Leadership Charter School
|
Series 2013
|
07/01/2033
|
5.750%
|
|
1,500,000
|
1,512,645
|
Build NYC Resource Corp.(d)
|
Revenue Bonds
|
International Leadership Charter School
|
Series 2016
|
07/01/2046
|
6.250%
|
|
265,000
|
268,856
|
Total
|
2,858,031
|
Health Services 0.9%
|
New York State Dormitory Authority
|
Refunding Revenue Bonds
|
Icahn School of Medicine at Mount Sinai
|
Series 2015
|
07/01/2040
|
5.000%
|
|
1,500,000
|
1,718,640
|
Higher Education 7.9%
|
Build NYC Resource Corp.
|
Refunding Revenue Bonds
|
City University of New York-Queens
|
Series 2014A
|
06/01/2043
|
5.000%
|
|
1,000,000
|
1,133,180
|
Manhattan College Project
|
Series 2017
|
08/01/2042
|
4.000%
|
|
750,000
|
811,523
|
Dutchess County Local Development Corp.
|
Refunding Revenue Bonds
|
Culinary Institute of America (The)
|
Series 2018
|
07/01/2033
|
5.000%
|
|
230,000
|
279,420
|
07/01/2034
|
5.000%
|
|
500,000
|
606,465
|
New York State Dormitory Authority
|
Refunding Revenue Bonds
|
Fordham University
|
Series 2017
|
07/01/2035
|
4.000%
|
|
1,000,000
|
1,126,700
|
New School
|
Series 2015A
|
07/01/2050
|
5.000%
|
|
1,500,000
|
1,701,810
|
Pratt Institute
|
Series 2015A
|
07/01/2044
|
5.000%
|
|
1,000,000
|
1,124,530
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
8
|
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
St. John’s University
|
Series 2015A
|
07/01/2037
|
5.000%
|
|
1,000,000
|
1,160,980
|
Teacher’s College
|
Series 2017
|
07/01/2033
|
4.000%
|
|
500,000
|
564,080
|
Revenue Bonds
|
Columbia University
|
10/01/2047
|
5.000%
|
|
1,000,000
|
1,547,880
|
Manhattan Marymount College
|
Series 2009
|
07/01/2029
|
5.250%
|
|
500,000
|
509,245
|
New York University
|
Series 2019A
|
07/01/2042
|
5.000%
|
|
1,000,000
|
1,259,170
|
Rochester Institute of Technology
|
Series 2019
|
07/01/2049
|
5.000%
|
|
1,250,000
|
1,524,112
|
St. John’s University
|
Series 2007C (NPFGC)
|
07/01/2026
|
5.250%
|
|
1,205,000
|
1,488,368
|
State University Dormitory Facilities
|
Series 2011A
|
07/01/2031
|
5.000%
|
|
1,000,000
|
1,058,440
|
Total
|
15,895,903
|
Hospital 10.9%
|
Buffalo & Erie County Industrial Land Development Corp.
|
Revenue Bonds
|
Catholic Health System
|
Series 2015
|
07/01/2040
|
5.000%
|
|
1,000,000
|
1,144,040
|
Build NYC Resource Corp.
|
Refunding Revenue Bonds
|
New York Methodist Hospital Project
|
Series 2014
|
07/01/2029
|
5.000%
|
|
225,000
|
255,816
|
07/01/2030
|
5.000%
|
|
180,000
|
203,848
|
Monroe County Industrial Development Corp.
|
Refunding Revenue Bonds
|
University of Rochester Project
|
Series 2017
|
07/01/2037
|
4.000%
|
|
500,000
|
560,540
|
Revenue Bonds
|
Unity Hospital-Rochester Project
|
Series 2010 (FHA)
|
08/15/2035
|
5.750%
|
|
2,000,000
|
2,118,540
|
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Nassau County Local Economic Assistance Corp.
|
Revenue Bonds
|
Catholic Health Services-Long Island
|
Series 2014
|
07/01/2032
|
5.000%
|
|
750,000
|
837,563
|
New York State Dormitory Authority
|
Refunding Revenue Bonds
|
Catholic Health System Obligation Group
|
Series 2019
|
07/01/2040
|
4.000%
|
|
350,000
|
388,378
|
07/01/2041
|
5.000%
|
|
695,000
|
848,282
|
Memorial Sloan-Kettering Cancer Center
|
Series 2017
|
07/01/2047
|
4.000%
|
|
500,000
|
559,720
|
Montefiore Obligation Group
|
Series 2018
|
08/01/2035
|
5.000%
|
|
350,000
|
424,540
|
North Shore - Long Island Jewish Obligation Group
|
Series 2015A
|
05/01/2037
|
5.000%
|
|
2,000,000
|
2,334,440
|
NYU Hospitals Center
|
Series 2014
|
07/01/2036
|
5.000%
|
|
1,000,000
|
1,144,740
|
Series 2016
|
07/01/2040
|
4.000%
|
|
1,000,000
|
1,093,880
|
Revenue Bonds
|
Mount Sinai Hospital
|
Series 2011A
|
07/01/2041
|
5.000%
|
|
2,000,000
|
2,108,760
|
Unrefunded Revenue Bonds
|
University of Rochester
|
Series 2009
|
07/01/2039
|
5.125%
|
|
130,000
|
130,365
|
New York State Dormitory Authority(d)
|
Refunding Revenue Bonds
|
Orange Regional Medical Center
|
Series 2017
|
12/01/2037
|
5.000%
|
|
400,000
|
466,844
|
New York State Dormitory Authority(e)
|
Revenue Bonds
|
Memorial Sloan Kettering Cancer Center
|
Series 2019
|
07/01/2039
|
5.000%
|
|
2,325,000
|
2,918,479
|
Suffolk County Economic Development Corp.
|
Unrefunded Revenue Bonds
|
Catholic Health Services
|
Series 2011
|
07/01/2028
|
5.000%
|
|
2,990,000
|
3,167,456
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
9
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Westchester County Healthcare Corp.
|
Unrefunded Revenue Bonds
|
Senior Lien
|
Series 2010C-2
|
11/01/2037
|
6.125%
|
|
205,000
|
214,369
|
Westchester County Local Development Corp.
|
Refunding Revenue Bonds
|
Westchester Medical Center
|
Series 2016
|
11/01/2037
|
3.750%
|
|
1,000,000
|
1,038,280
|
Total
|
21,958,880
|
Human Service Provider 0.4%
|
Dutchess County Local Development Corp.
|
Revenue Bonds
|
Anderson Center Services, Inc. Project
|
Series 2010
|
10/01/2030
|
6.000%
|
|
800,000
|
824,456
|
Independent Power 0.3%
|
Suffolk County Industrial Development Agency(c)
|
Revenue Bonds
|
Nissequogue Cogen Partners Facility
|
Series 1998 AMT
|
01/01/2023
|
5.500%
|
|
520,000
|
524,987
|
Local Appropriation 0.6%
|
Suffolk County Judicial Facilities Agency
|
Revenue Bonds
|
H. Lee Dennison Building
|
Series 2013
|
11/01/2025
|
5.000%
|
|
1,000,000
|
1,115,570
|
Local General Obligation 12.8%
|
City of New York
|
Unlimited General Obligation Bonds
|
Fiscal 2020
|
Series 2019B-1
|
10/01/2039
|
5.000%
|
|
1,000,000
|
1,255,310
|
Series 2016B1
|
12/01/2032
|
5.000%
|
|
500,000
|
607,060
|
Series 2017B-1
|
10/01/2041
|
4.000%
|
|
1,000,000
|
1,112,120
|
Subordinated Series 2018F-1
|
04/01/2043
|
5.000%
|
|
4,000,000
|
4,842,080
|
Subordinated Series 2019A-1
|
08/01/2041
|
5.000%
|
|
3,000,000
|
3,733,650
|
08/01/2042
|
4.000%
|
|
3,000,000
|
3,394,350
|
Unlimited General Obligation Refunding Bonds
|
Fiscal 2015
|
Series 2014A
|
08/01/2031
|
5.000%
|
|
500,000
|
578,815
|
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
City of Poughkeepsie
|
Limited General Obligation Refunding Bonds
|
Series 2019
|
06/01/2031
|
5.000%
|
|
600,000
|
675,948
|
City of Syracuse(c)
|
Unlimited General Obligation Bonds
|
Airport Terminal Security Access Improvement
|
Series 2011 AMT
|
11/01/2036
|
5.000%
|
|
1,750,000
|
1,857,432
|
County of Erie
|
Limited General Obligation Bonds
|
Public Improvement
|
Series 2015A
|
09/15/2028
|
5.000%
|
|
275,000
|
330,066
|
County of Nassau
|
Limited General Obligation Bonds
|
General Improvement
|
Series 2018B (AGM)
|
07/01/2034
|
5.000%
|
|
2,000,000
|
2,480,860
|
Series 2017B
|
04/01/2037
|
5.000%
|
|
2,000,000
|
2,389,180
|
Limited General Obligation Notes
|
Series 2019A (AGM)
|
04/01/2046
|
5.000%
|
|
1,000,000
|
1,220,090
|
Limited General Obligation Refunding Bonds
|
Series 2016A
|
01/01/2038
|
5.000%
|
|
1,000,000
|
1,163,440
|
Total
|
25,640,401
|
Multi-Family 9.1%
|
Amherst Development Corp.
|
Refunding Revenue Bonds
|
University of Buffalo Student Housing
|
Series 2017 (AGM)
|
10/01/2045
|
5.000%
|
|
500,000
|
595,685
|
Housing Development Corp.
|
Revenue Bonds
|
Gateway Apartments
|
Series 2009A
|
09/15/2025
|
4.500%
|
|
165,000
|
165,399
|
Sustainable Neighborhood
|
Series 2017G
|
11/01/2047
|
3.700%
|
|
2,000,000
|
2,089,440
|
New York City Housing Development Corp.
|
Refunding Revenue Bonds
|
Sustainable Neighborhood
|
Series 2019
|
11/01/2039
|
3.800%
|
|
1,500,000
|
1,605,705
|
11/01/2049
|
3.650%
|
|
1,000,000
|
1,044,270
|
Revenue Bonds
|
Series 2018K
|
11/01/2048
|
4.000%
|
|
1,000,000
|
1,063,960
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
10
|
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Sustainable Neighborhood
|
Series 2019
|
11/01/2049
|
3.250%
|
|
4,000,000
|
4,033,040
|
New York State Housing Finance Agency
|
Revenue Bonds
|
Affordable Housing
|
Series 2017M
|
11/01/2042
|
3.650%
|
|
750,000
|
784,942
|
Series 2019D
|
11/01/2044
|
3.700%
|
|
1,000,000
|
1,061,440
|
Climate Bond Certified/Sustainability Bonds
|
Series 2019
|
11/01/2044
|
3.150%
|
|
840,000
|
855,112
|
Green Bond
|
Series 2017H
|
11/01/2047
|
3.650%
|
|
1,360,000
|
1,412,442
|
Series 2017L (GNMA)
|
11/01/2037
|
3.300%
|
|
540,000
|
563,803
|
Sustainability Bonds
|
Series 2019I
|
11/01/2039
|
3.000%
|
|
800,000
|
819,272
|
Onondaga Civic Development Corp.
|
Revenue Bonds
|
Upstate Properties Development, Inc.
|
Series 2011
|
12/01/2041
|
5.250%
|
|
1,945,000
|
2,098,130
|
Total
|
18,192,640
|
Municipal Power 4.2%
|
Long Island Power Authority
|
Refunding Revenue Bonds
|
Series 2014A
|
09/01/2044
|
5.000%
|
|
1,000,000
|
1,135,500
|
Series 2016B
|
09/01/2036
|
5.000%
|
|
1,000,000
|
1,195,660
|
Revenue Bonds
|
Electric System General Purpose
|
Series 2015B
|
09/01/2045
|
5.000%
|
|
1,380,000
|
1,593,886
|
General
|
Series 2017
|
09/01/2047
|
5.000%
|
|
1,000,000
|
1,189,070
|
Series 2012A
|
09/01/2037
|
5.000%
|
|
2,000,000
|
2,183,140
|
Series 2018
|
09/01/2038
|
5.000%
|
|
1,000,000
|
1,224,940
|
Total
|
8,522,196
|
Municipal Bonds (continued)
|
Issue Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value ($)
|
Other Industrial Development Bond 0.2%
|
New York Liberty Development Corp.
|
Revenue Bonds
|
Goldman Sachs Headquarters
|
Series 2007
|
10/01/2037
|
5.500%
|
|
260,000
|
371,025
|
Pool / Bond Bank 0.0%
|
New York State Dormitory Authority
|
Unrefunded Revenue Bonds
|
School Districts Bond Financing Program
|
Series 2009 (AGM)
|
10/01/2036
|
5.125%
|
|
15,000
|
15,042
|
Ports 7.4%
|
Port Authority of New York & New Jersey(c)
|
Refunding Revenue Bonds
|
193rd Series 2015 AMT
|
10/15/2035
|
5.000%
|
|
3,135,000
|
3,668,514
|
Consolidated 186th
|
Series 2014 AMT
|
10/15/2044
|
5.000%
|
|
1,000,000
|
1,135,150
|
Series 2018-207 AMT
|
09/15/2043
|
4.000%
|
|
1,500,000
|
1,666,410
|
Port Authority of New York & New Jersey
|
Refunding Revenue Bonds
|
Consol-211th
|
Series 2018
|
09/01/2043
|
4.000%
|
|
3,000,000
|
3,387,450
|
Revenue Bonds
|
Consolidated 85th
|
Series 1993
|
03/01/2028
|
5.375%
|
|
2,000,000
|
2,383,260
|
Consolidated 93rd
|
Series 1994
|
06/01/2094
|
6.125%
|
|
2,250,000
|
2,697,210
|
Total
|
14,937,994
|
Prep School 1.4%
|
Build NYC Resource Corp.
|
Refunding Revenue Bonds
|
Series 2015
|
06/01/2033
|
5.000%
|
|
500,000
|
581,000
|
06/01/2035
|
5.000%
|
|
700,000
|
811,447
|
New York State Dormitory Authority
|
Revenue Bonds
|
Convent-Sacred Heart
|
Series 2011 (AGM)
|
11/01/2035
|
5.625%
|
|
750,000
|
797,227
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
11
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Rensselaer County Industrial Development Agency
|
Refunding Revenue Bonds
|
Emma Willard School Project
|
Series 2015A
|
01/01/2036
|
5.000%
|
|
500,000
|
573,885
|
Total
|
2,763,559
|
Recreation 2.0%
|
Build NYC Resource Corp.
|
Refunding Revenue Bonds
|
YMCA of Greater New York Project
|
Series 2015
|
08/01/2040
|
5.000%
|
|
900,000
|
1,027,116
|
Revenue Bonds
|
YMCA of Greater New York Project
|
Series 2012
|
08/01/2032
|
5.000%
|
|
500,000
|
537,405
|
New York City Industrial Development Agency
|
Revenue Bonds
|
Pilot-Yankee Stadium
|
Series 2009 (AGM)
|
03/01/2049
|
7.000%
|
|
250,000
|
251,247
|
New York City Trust for Cultural Resources
|
Refunding Revenue Bonds
|
American Museum of Natural History
|
Series 2014S
|
07/01/2041
|
5.000%
|
|
2,000,000
|
2,286,180
|
Total
|
4,101,948
|
Refunded / Escrowed 2.0%
|
Dutchess County Local Development Corp.
|
Prerefunded 07/01/24 Revenue Bonds
|
Series 2014A
|
07/01/2044
|
5.000%
|
|
1,000,000
|
1,166,700
|
Triborough Bridge & Tunnel Authority
|
Prerefunded 01/01/22 Revenue Bonds
|
General Purpose
|
Series 1999B
|
01/01/2030
|
5.500%
|
|
1,000,000
|
1,091,780
|
Westchester County Healthcare Corp.
|
Prerefunded 11/01/20 Revenue Bonds
|
Senior Lien
|
Series 2010C
|
11/01/2037
|
6.125%
|
|
1,645,000
|
1,726,477
|
Total
|
3,984,957
|
Resource Recovery 1.0%
|
Build NYC Resource Corp.(c),(d)
|
Refunding Revenue Bonds
|
Pratt Paper, Inc. Project
|
Series 2014 AMT
|
01/01/2035
|
5.000%
|
|
750,000
|
825,158
|
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Jefferson County Industrial Development Agency(c),(d)
|
Revenue Bonds
|
Green Bonds
|
Series 2014 AMT
|
01/01/2024
|
5.250%
|
|
1,280,000
|
1,278,963
|
Total
|
2,104,121
|
Retirement Communities 3.0%
|
Brookhaven Local Development Corp.
|
Refunding Revenue Bonds
|
Jeffersons Ferry Project
|
Series 2016
|
11/01/2036
|
5.250%
|
|
750,000
|
874,620
|
Suffolk County Economic Development Corp.
|
Refunding Revenue Bonds
|
Peconic Landing Southold
|
Series 2010
|
12/01/2040
|
6.000%
|
|
1,225,000
|
1,271,893
|
Tompkins County Development Corp.
|
Refunding Revenue Bonds
|
Kendal at Ithaca, Inc. Project
|
Series 2014
|
07/01/2044
|
5.000%
|
|
1,655,000
|
1,800,541
|
Ulster County Capital Resource Corp.(d)
|
Refunding Revenue Bonds
|
Woodland Pond at New Paltz
|
Series 2017
|
09/15/2047
|
5.250%
|
|
500,000
|
512,260
|
09/15/2053
|
5.250%
|
|
1,000,000
|
1,020,590
|
Westchester County Local Development Corp.
|
Refunding Revenue Bonds
|
Miriam Osborn Memorial Home Association Project
|
Series 2019
|
07/01/2042
|
5.000%
|
|
450,000
|
519,529
|
Total
|
5,999,433
|
Sales Tax 1.2%
|
Nassau County Interim Finance Authority
|
Unrefunded Revenue Bonds
|
Sales Tax Secured
|
Series 2009
|
11/15/2024
|
5.000%
|
|
15,000
|
15,042
|
New York State Dormitory Authority
|
Refunding Revenue Bonds
|
Series 2018E
|
03/15/2048
|
5.000%
|
|
2,000,000
|
2,429,320
|
Total
|
2,444,362
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
12
|
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value ($)
|
Single Family 1.1%
|
State of New York Mortgage Agency
|
Refunding Revenue Bonds
|
Series 2019-217
|
04/01/2039
|
3.625%
|
|
500,000
|
532,165
|
State of New York Mortgage Agency(c)
|
Refunding Revenue Bonds
|
Series 2019-218 AMT
|
04/01/2033
|
3.600%
|
|
1,000,000
|
1,065,210
|
04/01/2038
|
3.850%
|
|
500,000
|
533,290
|
Total
|
2,130,665
|
Special Non Property Tax 5.7%
|
Metropolitan Transportation Authority(f)
|
Refunding Revenue Bonds
|
Series 2012A
|
11/15/2032
|
0.000%
|
|
2,500,000
|
1,821,275
|
New York City Transitional Finance Authority
|
Refunded Revenue Bonds
|
Future Tax Secured
|
Subordinated Series 2012B
|
11/01/2030
|
5.000%
|
|
500,000
|
552,395
|
Revenue Bonds
|
Future Tax Secured
|
Subordinated Series 2019
|
11/01/2037
|
4.000%
|
|
2,000,000
|
2,294,640
|
New York City Transitional Finance Authority Building Aid
|
Refunding Revenue Bonds
|
Subordinated Series 2018S-3A
|
07/15/2037
|
5.000%
|
|
2,000,000
|
2,464,080
|
New York Convention Center Development Corp.
|
Refunding Revenue Bonds
|
Hotel Unit Fee Secured
|
Series 2015
|
11/15/2045
|
5.000%
|
|
1,500,000
|
1,748,160
|
New York State Dormitory Authority
|
Refunding Revenue Bonds
|
Series 2018A
|
03/15/2038
|
5.250%
|
|
2,000,000
|
2,522,120
|
Total
|
11,402,670
|
Special Property Tax 0.8%
|
Glen Cove Local Economic Assistance Corp.
|
Refunding Revenue Bonds
|
Garview Point Public Improvement Project
|
Series 2016
|
01/01/2056
|
5.000%
|
|
1,000,000
|
1,081,700
|
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
New York Liberty Development Corp.
|
Refunding Revenue Bonds
|
Bank of America Tower at One Bryant Park Project
|
Series 2019
|
09/15/2069
|
2.800%
|
|
500,000
|
509,855
|
Total
|
1,591,555
|
State Appropriated 1.1%
|
Erie County Industrial Development Agency (The)
|
Revenue Bonds
|
School District of Buffalo Project
|
Series 2011A
|
05/01/2032
|
5.250%
|
|
1,000,000
|
1,056,280
|
New York State Dormitory Authority
|
Revenue Bonds
|
Consolidated City University System 2nd Generation
|
Series 1993A
|
07/01/2020
|
6.000%
|
|
1,055,000
|
1,088,233
|
Total
|
2,144,513
|
Student Loan 0.0%
|
State of New York Mortgage Agency
|
Revenue Bonds
|
New York State Higher Education Finance
|
Series 2009
|
11/01/2026
|
4.750%
|
|
75,000
|
75,068
|
Tobacco 3.2%
|
Chautauqua Tobacco Asset Securitization Corp.
|
Refunding Revenue Bonds
|
Series 2014
|
06/01/2034
|
5.000%
|
|
1,000,000
|
1,055,950
|
New York Counties Tobacco Trust VI
|
Refunding Revenue Bonds
|
Tobacco Settlement Pass-Through
|
Series 2016
|
06/01/2051
|
5.000%
|
|
2,000,000
|
2,086,360
|
TSASC, Inc.
|
Refunding Revenue Bonds
|
Series 2017A
|
06/01/2041
|
5.000%
|
|
3,000,000
|
3,366,990
|
Total
|
6,509,300
|
Transportation 5.8%
|
Metropolitan Transportation Authority
|
Refunding Revenue Bonds
|
Series 2017D
|
11/15/2035
|
5.000%
|
|
1,330,000
|
1,614,979
|
11/15/2042
|
4.000%
|
|
2,000,000
|
2,208,180
|
Revenue Bonds
|
Green Bonds
|
Series 2016A-1
|
11/15/2041
|
5.000%
|
|
1,000,000
|
1,160,450
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
13
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Series 2005B (AMBAC)
|
11/15/2023
|
5.250%
|
|
1,250,000
|
1,441,162
|
Transportation
|
Series 2014B
|
11/15/2044
|
5.000%
|
|
2,000,000
|
2,246,640
|
Series 2015B
|
11/15/2040
|
5.000%
|
|
1,675,000
|
1,916,619
|
Transportation Program
|
Subordinated Series 2015A-1
|
11/15/2045
|
5.000%
|
|
1,000,000
|
1,137,910
|
Total
|
11,725,940
|
Turnpike / Bridge / Toll Road 5.2%
|
New York State Thruway Authority
|
Revenue Bonds
|
Series 2014J
|
01/01/2041
|
5.000%
|
|
3,000,000
|
3,363,900
|
Series 2019B
|
01/01/2045
|
4.000%
|
|
2,415,000
|
2,698,545
|
Triborough Bridge & Tunnel Authority
|
Revenue Bonds
|
MTA Bridges and Tunnels
|
Series 2019A
|
11/15/2049
|
5.000%
|
|
3,610,000
|
4,435,391
|
Total
|
10,497,836
|
Water & Sewer 4.7%
|
New York City Water & Sewer System
|
Refunding Revenue Bonds
|
2nd Generation Resolution
|
Subordinated Series 2019
|
06/15/2040
|
4.000%
|
|
1,000,000
|
1,137,460
|
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Revenue Bonds
|
Series 2017
|
06/15/2048
|
5.000%
|
|
4,000,000
|
4,765,120
|
Series 2019DD-1
|
06/15/2049
|
5.000%
|
|
2,000,000
|
2,413,320
|
Niagara Falls Public Water Authority
|
Revenue Bonds
|
Series 2013A
|
07/15/2029
|
5.000%
|
|
1,000,000
|
1,119,070
|
Total
|
9,434,970
|
Total Municipal Bonds
(Cost $185,999,335)
|
197,789,250
|
Money Market Funds 1.3%
|
|
Shares
|
Value ($)
|
JPMorgan Institutional Tax Free Money Market Fund, Institutional Shares, 1.045%(g)
|
2,655,052
|
2,655,052
|
Total Money Market Funds
(Cost $2,655,052)
|
2,655,052
|
Total Investments in Securities
(Cost: $189,354,387)
|
201,144,302
|
Other Assets & Liabilities, Net
|
|
(226,134)
|
Net Assets
|
200,918,168
|
Notes to Portfolio of
Investments
(a)
|
The Fund is entitled to receive principal and interest from the guarantor after a day or a week’s notice or upon maturity. The maturity date disclosed represents the final maturity.
|
(b)
|
Represents a variable rate security where the coupon rate adjusts on specified dates (generally daily or weekly) using the prevailing money market rate. The interest rate shown was
the current rate as of October 31, 2019.
|
(c)
|
Income from this security may be subject to alternative minimum tax.
|
(d)
|
Represents privately placed and other securities and instruments exempt from Securities and Exchange Commission registration (collectively, private placements), such as Section
4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. The Fund may invest in private placements determined to be liquid as well as those determined to be illiquid.
Private placements may be determined to be liquid under guidelines established by the Fund’s Board of Trustees. At October 31, 2019, the total value of these securities amounted to $4,372,671, which represents
2.18% of total net assets.
|
(e)
|
Represents a security purchased on a when-issued basis.
|
(f)
|
Zero coupon bond.
|
(g)
|
The rate shown is the seven-day current annualized yield at October 31, 2019.
|
The accompanying Notes to Financial Statements are
an integral part of this statement.
14
|
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
Portfolio of Investments (continued)
October 31, 2019
Abbreviation Legend
AGM
|
Assured Guaranty Municipal Corporation
|
AMBAC
|
Ambac Assurance Corporation
|
AMT
|
Alternative Minimum Tax
|
FHA
|
Federal Housing Authority
|
GNMA
|
Government National Mortgage Association
|
NPFGC
|
National Public Finance Guarantee Corporation
|
Fair value measurements
The Fund categorizes its fair
value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available.
Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the
Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is
deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example,
certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in
the three broad levels listed below:
■
|
Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments.
|
■
|
Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.).
|
■
|
Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments).
|
Inputs that are used in determining
fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary
between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered
by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include
periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels
within the hierarchy.
Investments falling into the Level 3
category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency
and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant
unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and
estimated cash flows, and comparable company data.
Under the direction of the
Fund’s Board of Trustees (the Board), the Investment Manager’s Valuation Committee (the Committee) is responsible for overseeing the valuation procedures approved by the Board. The Committee consists of
voting and non-voting members from various groups within the Investment Manager’s organization, including operations and accounting, trading and investments, compliance, risk management and legal.
The Committee meets at least monthly
to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of
Board-approved valuation control policies and procedures (the Policies). The Policies address, among other things, instances when market quotations are or are not readily available, including recommendations of third
party pricing vendors and a determination of appropriate pricing methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale
pricing, including those that are illiquid, restricted, or in default; and the effectiveness of third party pricing vendors, including periodic reviews of vendors. The Committee meets more frequently, as needed, to
discuss additional valuation matters, which may include the need to review back-testing results, review time-sensitive information or approve related valuation actions. The Committee reports to the Board, with members
of the Committee meeting with the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.
The following table is a summary of
the inputs used to value the Fund’s investments at October 31, 2019:
|
Level 1 ($)
|
Level 2 ($)
|
Level 3 ($)
|
Total ($)
|
Investments in Securities
|
|
|
|
|
Floating Rate Notes
|
—
|
700,000
|
—
|
700,000
|
Municipal Bonds
|
—
|
197,789,250
|
—
|
197,789,250
|
Money Market Funds
|
2,655,052
|
—
|
—
|
2,655,052
|
Total Investments in Securities
|
2,655,052
|
198,489,250
|
—
|
201,144,302
|
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The Fund’s assets assigned to
the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical
assets.
The accompanying Notes to Financial Statements are
an integral part of this statement.
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
15
|
Statement of Assets and Liabilities
October 31, 2019
Assets
|
|
Investments in securities, at value
|
|
Unaffiliated issuers (cost $189,354,387)
|
$201,144,302
|
Cash
|
283
|
Receivable for:
|
|
Capital shares sold
|
805,200
|
Interest
|
2,578,461
|
Expense reimbursement due from Investment Manager
|
252
|
Prepaid expenses
|
988
|
Trustees’ deferred compensation plan
|
68,542
|
Total assets
|
204,598,028
|
Liabilities
|
|
Payable for:
|
|
Investments purchased on a delayed delivery basis
|
2,939,916
|
Capital shares purchased
|
170,602
|
Distributions to shareholders
|
463,764
|
Management services fees
|
2,567
|
Distribution and/or service fees
|
1,172
|
Transfer agent fees
|
13,607
|
Compensation of board members
|
185
|
Compensation of chief compliance officer
|
6
|
Other expenses
|
19,499
|
Trustees’ deferred compensation plan
|
68,542
|
Total liabilities
|
3,679,860
|
Net assets applicable to outstanding capital stock
|
$200,918,168
|
Represented by
|
|
Paid in capital
|
187,002,483
|
Total distributable earnings (loss)
|
13,915,685
|
Total - representing net assets applicable to outstanding capital stock
|
$200,918,168
|
Class A
|
|
Net assets
|
$117,062,241
|
Shares outstanding
|
15,459,744
|
Net asset value per share
|
$7.57
|
Maximum sales charge
|
3.00%
|
Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares)
|
$7.80
|
Advisor Class
|
|
Net assets
|
$6,469,916
|
Shares outstanding
|
855,553
|
Net asset value per share
|
$7.56
|
Class C
|
|
Net assets
|
$19,692,952
|
Shares outstanding
|
2,601,822
|
Net asset value per share
|
$7.57
|
Institutional Class
|
|
Net assets
|
$52,744,812
|
Shares outstanding
|
6,971,598
|
Net asset value per share
|
$7.57
|
Institutional 2 Class
|
|
Net assets
|
$4,207,261
|
Shares outstanding
|
557,425
|
Net asset value per share
|
$7.55
|
Institutional 3 Class
|
|
Net assets
|
$740,986
|
Shares outstanding
|
97,879
|
Net asset value per share
|
$7.57
|
The accompanying Notes to Financial Statements are
an integral part of this statement.
16
|
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
Statement of Operations
Year Ended October 31, 2019
Net investment income
|
|
Income:
|
|
Dividends — unaffiliated issuers
|
$7,828
|
Interest
|
7,314,402
|
Total income
|
7,322,230
|
Expenses:
|
|
Management services fees
|
905,523
|
Distribution and/or service fees
|
|
Class A
|
290,934
|
Class C
|
201,832
|
Transfer agent fees
|
|
Class A
|
94,763
|
Advisor Class
|
4,337
|
Class C
|
16,442
|
Institutional Class
|
37,614
|
Institutional 2 Class
|
2,488
|
Institutional 3 Class
|
87
|
Compensation of board members
|
16,323
|
Custodian fees
|
3,101
|
Printing and postage fees
|
18,421
|
Registration fees
|
11,676
|
Audit fees
|
29,500
|
Legal fees
|
4,060
|
Compensation of chief compliance officer
|
74
|
Other
|
15,603
|
Total expenses
|
1,652,778
|
Fees waived or expenses reimbursed by Investment Manager and its affiliates
|
(101,161)
|
Fees waived by distributor
|
|
Class C
|
(60,549)
|
Expense reduction
|
(180)
|
Total net expenses
|
1,490,888
|
Net investment income
|
5,831,342
|
Realized and unrealized gain (loss) — net
|
|
Net realized gain (loss) on:
|
|
Investments — unaffiliated issuers
|
2,080,354
|
Futures contracts
|
(107,807)
|
Net realized gain
|
1,972,547
|
Net change in unrealized appreciation (depreciation) on:
|
|
Investments — unaffiliated issuers
|
9,473,002
|
Net change in unrealized appreciation (depreciation)
|
9,473,002
|
Net realized and unrealized gain
|
11,445,549
|
Net increase in net assets resulting from operations
|
$17,276,891
|
The accompanying Notes to
Financial Statements are an integral part of this statement.
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
17
|
Statement of Changes in Net Assets
|
Year Ended
October 31, 2019
|
Year Ended
October 31, 2018
|
Operations
|
|
|
Net investment income
|
$5,831,342
|
$6,727,851
|
Net realized gain (loss)
|
1,972,547
|
(273,735)
|
Net change in unrealized appreciation (depreciation)
|
9,473,002
|
(8,679,902)
|
Net increase (decrease) in net assets resulting from operations
|
17,276,891
|
(2,225,786)
|
Distributions to shareholders
|
|
|
Net investment income and net realized gains
|
|
|
Class A
|
(3,471,161)
|
(4,359,826)
|
Advisor Class
|
(170,492)
|
(109,543)
|
Class C
|
(511,479)
|
(747,829)
|
Institutional Class
|
(1,485,753)
|
(1,637,193)
|
Institutional 2 Class
|
(137,065)
|
(206,972)
|
Institutional 3 Class
|
(13,587)
|
(1,882)
|
Total distributions to shareholders
|
(5,789,537)
|
(7,063,245)
|
Decrease in net assets from capital stock activity
|
(3,691,252)
|
(15,539,756)
|
Total increase (decrease) in net assets
|
7,796,102
|
(24,828,787)
|
Net assets at beginning of year
|
193,122,066
|
217,950,853
|
Net assets at end of year
|
$200,918,168
|
$193,122,066
|
The accompanying Notes to
Financial Statements are an integral part of this statement.
18
|
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
Statement of Changes in Net Assets (continued)
|
Year Ended
|
Year Ended
|
|
October 31, 2019
|
October 31, 2018
|
|
Shares
|
Dollars ($)
|
Shares
|
Dollars ($)
|
Capital stock activity
|
Class A
|
|
|
|
|
Subscriptions
|
1,527,367
|
11,248,892
|
1,582,248
|
11,573,639
|
Distributions reinvested
|
387,703
|
2,869,665
|
504,382
|
3,684,212
|
Redemptions
|
(3,379,884)
|
(24,683,575)
|
(3,220,692)
|
(23,454,278)
|
Net decrease
|
(1,464,814)
|
(10,565,018)
|
(1,134,062)
|
(8,196,427)
|
Advisor Class
|
|
|
|
|
Subscriptions
|
324,669
|
2,394,757
|
401,623
|
2,897,414
|
Distributions reinvested
|
22,954
|
170,161
|
15,003
|
109,176
|
Redemptions
|
(169,308)
|
(1,220,921)
|
(77,745)
|
(561,276)
|
Net increase
|
178,315
|
1,343,997
|
338,881
|
2,445,314
|
Class C
|
|
|
|
|
Subscriptions
|
279,767
|
2,057,853
|
372,683
|
2,737,145
|
Distributions reinvested
|
53,047
|
392,243
|
81,291
|
593,922
|
Redemptions
|
(694,322)
|
(5,090,282)
|
(1,245,308)
|
(9,100,400)
|
Net decrease
|
(361,508)
|
(2,640,186)
|
(791,334)
|
(5,769,333)
|
Institutional Class
|
|
|
|
|
Subscriptions
|
2,491,505
|
18,346,332
|
1,422,612
|
10,435,943
|
Distributions reinvested
|
138,004
|
1,022,144
|
160,810
|
1,173,330
|
Redemptions
|
(1,424,939)
|
(10,373,641)
|
(2,027,015)
|
(14,770,385)
|
Net increase (decrease)
|
1,204,570
|
8,994,835
|
(443,593)
|
(3,161,112)
|
Institutional 2 Class
|
|
|
|
|
Subscriptions
|
167,446
|
1,215,560
|
143,450
|
1,035,951
|
Distributions reinvested
|
18,550
|
136,733
|
28,380
|
206,606
|
Redemptions
|
(396,655)
|
(2,858,245)
|
(278,338)
|
(2,035,721)
|
Net decrease
|
(210,659)
|
(1,505,952)
|
(106,508)
|
(793,164)
|
Institutional 3 Class
|
|
|
|
|
Subscriptions
|
94,190
|
693,242
|
2,594
|
18,688
|
Distributions reinvested
|
1,765
|
13,255
|
203
|
1,493
|
Redemptions
|
(3,361)
|
(25,425)
|
(11,616)
|
(85,215)
|
Net increase (decrease)
|
92,594
|
681,072
|
(8,819)
|
(65,034)
|
Total net decrease
|
(561,502)
|
(3,691,252)
|
(2,145,435)
|
(15,539,756)
|
The accompanying Notes to Financial Statements are
an integral part of this statement.
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
19
|
The following table is intended to
help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are
calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total
return and portfolio turnover are not annualized for periods of less than one year. The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments and certain
derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be higher.
|
Net asset value,
beginning of
period
|
Net
investment
income
|
Net
realized
and
unrealized
gain (loss)
|
Total from
investment
operations
|
Distributions
from net
investment
income
|
Distributions
from net
realized
gains
|
Total
distributions to
shareholders
|
Class A
|
Year Ended 10/31/2019
|
$7.13
|
0.22
|
0.44
|
0.66
|
(0.22)
|
—
|
(0.22)
|
Year Ended 10/31/2018
|
$7.45
|
0.23
|
(0.30)
|
(0.07)
|
(0.24)
|
(0.01)
|
(0.25)
|
Year Ended 10/31/2017
|
$7.58
|
0.24
|
(0.13)
|
0.11
|
(0.23)
|
(0.01)
|
(0.24)
|
Year Ended 10/31/2016
|
$7.50
|
0.24
|
0.10
|
0.34
|
(0.24)
|
(0.02)
|
(0.26)
|
Year Ended 10/31/2015
|
$7.51
|
0.27
|
(0.01)
|
0.26
|
(0.27)
|
—
|
(0.27)
|
Advisor Class
|
Year Ended 10/31/2019
|
$7.12
|
0.24
|
0.44
|
0.68
|
(0.24)
|
—
|
(0.24)
|
Year Ended 10/31/2018
|
$7.44
|
0.25
|
(0.31)
|
(0.06)
|
(0.25)
|
(0.01)
|
(0.26)
|
Year Ended 10/31/2017
|
$7.57
|
0.26
|
(0.13)
|
0.13
|
(0.25)
|
(0.01)
|
(0.26)
|
Year Ended 10/31/2016
|
$7.49
|
0.25
|
0.11
|
0.36
|
(0.26)
|
(0.02)
|
(0.28)
|
Year Ended 10/31/2015
|
$7.50
|
0.29
|
(0.02)
|
0.27
|
(0.28)
|
—
|
(0.28)
|
Class C
|
Year Ended 10/31/2019
|
$7.12
|
0.19
|
0.45
|
0.64
|
(0.19)
|
—
|
(0.19)
|
Year Ended 10/31/2018
|
$7.45
|
0.20
|
(0.32)
|
(0.12)
|
(0.20)
|
(0.01)
|
(0.21)
|
Year Ended 10/31/2017
|
$7.58
|
0.20
|
(0.12)
|
0.08
|
(0.20)
|
(0.01)
|
(0.21)
|
Year Ended 10/31/2016
|
$7.50
|
0.21
|
0.09
|
0.30
|
(0.20)
|
(0.02)
|
(0.22)
|
Year Ended 10/31/2015
|
$7.51
|
0.24
|
(0.02)
|
0.22
|
(0.23)
|
—
|
(0.23)
|
Institutional Class
|
Year Ended 10/31/2019
|
$7.12
|
0.24
|
0.45
|
0.69
|
(0.24)
|
—
|
(0.24)
|
Year Ended 10/31/2018
|
$7.45
|
0.25
|
(0.32)
|
(0.07)
|
(0.25)
|
(0.01)
|
(0.26)
|
Year Ended 10/31/2017
|
$7.58
|
0.26
|
(0.13)
|
0.13
|
(0.25)
|
(0.01)
|
(0.26)
|
Year Ended 10/31/2016
|
$7.50
|
0.26
|
0.10
|
0.36
|
(0.26)
|
(0.02)
|
(0.28)
|
Year Ended 10/31/2015
|
$7.51
|
0.29
|
(0.02)
|
0.27
|
(0.28)
|
—
|
(0.28)
|
The accompanying Notes to
Financial Statements are an integral part of this statement.
20
|
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
Financial Highlights (continued)
|
Net
asset
value,
end of
period
|
Total
return
|
Total gross
expense
ratio to
average
net assets(a)
|
Total net
expense
ratio to
average
net assets(a),(b)
|
Net investment
income
ratio to
average
net assets
|
Portfolio
turnover
|
Net
assets,
end of
period
(000’s)
|
Class A
|
Year Ended 10/31/2019
|
$7.57
|
9.37%
|
0.85%
|
0.80%(c)
|
3.00%
|
46%
|
$117,062
|
Year Ended 10/31/2018
|
$7.13
|
(1.02%)
|
0.85%
|
0.80%(c)
|
3.21%
|
19%
|
$120,625
|
Year Ended 10/31/2017
|
$7.45
|
1.59%
|
0.85%
|
0.79%(c)
|
3.21%
|
7%
|
$134,602
|
Year Ended 10/31/2016
|
$7.58
|
4.53%
|
0.91%
|
0.80%(c)
|
3.17%
|
9%
|
$179,419
|
Year Ended 10/31/2015
|
$7.50
|
3.46%
|
0.92%
|
0.78%(c)
|
3.60%
|
11%
|
$147,143
|
Advisor Class
|
Year Ended 10/31/2019
|
$7.56
|
9.66%
|
0.60%
|
0.55%(c)
|
3.23%
|
46%
|
$6,470
|
Year Ended 10/31/2018
|
$7.12
|
(0.78%)
|
0.60%
|
0.55%(c)
|
3.48%
|
19%
|
$4,821
|
Year Ended 10/31/2017
|
$7.44
|
1.84%
|
0.59%
|
0.55%(c)
|
3.46%
|
7%
|
$2,518
|
Year Ended 10/31/2016
|
$7.57
|
4.80%
|
0.66%
|
0.56%(c)
|
3.32%
|
9%
|
$291
|
Year Ended 10/31/2015
|
$7.49
|
3.72%
|
0.67%
|
0.53%(c)
|
3.86%
|
11%
|
$41
|
Class C
|
Year Ended 10/31/2019
|
$7.57
|
9.04%
|
1.60%
|
1.25%(c)
|
2.56%
|
46%
|
$19,693
|
Year Ended 10/31/2018
|
$7.12
|
(1.60%)
|
1.60%
|
1.25%(c)
|
2.76%
|
19%
|
$21,111
|
Year Ended 10/31/2017
|
$7.45
|
1.13%
|
1.60%
|
1.24%(c)
|
2.76%
|
7%
|
$27,972
|
Year Ended 10/31/2016
|
$7.58
|
4.07%
|
1.66%
|
1.25%(c)
|
2.69%
|
9%
|
$30,350
|
Year Ended 10/31/2015
|
$7.50
|
3.00%
|
1.67%
|
1.23%(c)
|
3.15%
|
11%
|
$19,165
|
Institutional Class
|
Year Ended 10/31/2019
|
$7.57
|
9.80%
|
0.60%
|
0.55%(c)
|
3.24%
|
46%
|
$52,745
|
Year Ended 10/31/2018
|
$7.12
|
(0.91%)
|
0.60%
|
0.55%(c)
|
3.46%
|
19%
|
$41,072
|
Year Ended 10/31/2017
|
$7.45
|
1.84%
|
0.60%
|
0.55%(c)
|
3.48%
|
7%
|
$46,257
|
Year Ended 10/31/2016
|
$7.58
|
4.79%
|
0.66%
|
0.55%(c)
|
3.40%
|
9%
|
$25,827
|
Year Ended 10/31/2015
|
$7.50
|
3.72%
|
0.67%
|
0.53%(c)
|
3.85%
|
11%
|
$17,088
|
The accompanying Notes to
Financial Statements are an integral part of this statement.
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
21
|
Financial Highlights (continued)
|
Net asset value,
beginning of
period
|
Net
investment
income
|
Net
realized
and
unrealized
gain (loss)
|
Total from
investment
operations
|
Distributions
from net
investment
income
|
Distributions
from net
realized
gains
|
Total
distributions to
shareholders
|
Institutional 2 Class
|
Year Ended 10/31/2019
|
$7.10
|
0.24
|
0.45
|
0.69
|
(0.24)
|
—
|
(0.24)
|
Year Ended 10/31/2018
|
$7.43
|
0.25
|
(0.32)
|
(0.07)
|
(0.25)
|
(0.01)
|
(0.26)
|
Year Ended 10/31/2017
|
$7.55
|
0.26
|
(0.12)
|
0.14
|
(0.25)
|
(0.01)
|
(0.26)
|
Year Ended 10/31/2016
|
$7.48
|
0.25
|
0.10
|
0.35
|
(0.26)
|
(0.02)
|
(0.28)
|
Year Ended 10/31/2015
|
$7.49
|
0.29
|
(0.01)
|
0.28
|
(0.29)
|
—
|
(0.29)
|
Institutional 3 Class
|
Year Ended 10/31/2019
|
$7.13
|
0.24
|
0.44
|
0.68
|
(0.24)
|
—
|
(0.24)
|
Year Ended 10/31/2018
|
$7.45
|
0.26
|
(0.31)
|
(0.05)
|
(0.26)
|
(0.01)
|
(0.27)
|
Year Ended 10/31/2017(d)
|
$7.33
|
0.17
|
0.12(e)
|
0.29
|
(0.17)
|
—
|
(0.17)
|
Notes to Financial Highlights
|
(a)
|
In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such
indirect expenses are not included in the Fund’s reported expense ratios.
|
(b)
|
Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable.
|
(c)
|
The benefits derived from expense reductions had an impact of less than 0.01%.
|
(d)
|
Institutional 3 Class shares commenced operations on March 1, 2017. Per share data and total return reflect activity from that date.
|
(e)
|
Calculation of the net gain (loss) per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gain (loss) presented in the Statement of
Operations due to the timing of subscriptions and redemptions of Fund shares in relation to fluctuations in the market value of the portfolio.
|
(f)
|
Annualized.
|
The accompanying Notes to
Financial Statements are an integral part of this statement.
22
|
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
Financial Highlights (continued)
|
Net
asset
value,
end of
period
|
Total
return
|
Total gross
expense
ratio to
average
net assets(a)
|
Total net
expense
ratio to
average
net assets(a),(b)
|
Net investment
income
ratio to
average
net assets
|
Portfolio
turnover
|
Net
assets,
end of
period
(000’s)
|
Institutional 2 Class
|
Year Ended 10/31/2019
|
$7.55
|
9.84%
|
0.58%
|
0.53%
|
3.28%
|
46%
|
$4,207
|
Year Ended 10/31/2018
|
$7.10
|
(0.91%)
|
0.58%
|
0.54%
|
3.46%
|
19%
|
$5,457
|
Year Ended 10/31/2017
|
$7.43
|
1.98%
|
0.59%
|
0.54%
|
3.46%
|
7%
|
$6,497
|
Year Ended 10/31/2016
|
$7.55
|
4.71%
|
0.60%
|
0.51%
|
3.33%
|
9%
|
$390
|
Year Ended 10/31/2015
|
$7.48
|
3.76%
|
0.58%
|
0.49%
|
3.89%
|
11%
|
$10
|
Institutional 3 Class
|
Year Ended 10/31/2019
|
$7.57
|
9.71%
|
0.54%
|
0.49%
|
3.17%
|
46%
|
$741
|
Year Ended 10/31/2018
|
$7.13
|
(0.72%)
|
0.54%
|
0.50%
|
3.49%
|
19%
|
$38
|
Year Ended 10/31/2017(d)
|
$7.45
|
4.00%
|
0.54%(f)
|
0.50%(f)
|
3.62%(f)
|
7%
|
$105
|
The accompanying Notes to Financial Statements are
an integral part of this statement.
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
23
|
Notes to Financial Statements
October 31, 2019
Note 1. Organization
Columbia Strategic New York
Municipal Income Fund (the Fund), a series of Columbia Funds Series Trust I (the Trust), is a non-diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an
open-end management investment company organized as a Massachusetts business trust.
Fund shares
The Trust may issue an unlimited
number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation
rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have
different minimum initial investment amounts and pay different distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a liquidation will be
proportional to the net asset value of each share class.
As described in the Fund’s
prospectus, Class A and Class C shares are offered to the general public for investment. Advisor Class, Institutional Class, Institutional 2 Class and Institutional 3 Class shares are available for purchase through
authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also described in the Fund’s prospectus. Class C shares automatically convert to
Class A shares after 10 years.
Note 2. Summary of
significant accounting policies
Basis of preparation
The Fund is an investment company
that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires
management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of
significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Debt securities generally are
valued by pricing services approved by the Board of Trustees based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques that take
into account, as applicable, factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as approved independent broker-dealer quotes. Debt securities for
which quotations are not readily available or not believed to be reflective of market value may also be valued based upon a bid quote from an approved independent broker-dealer. Debt securities maturing in 60 days or
less are valued primarily at amortized cost value, unless this method results in a valuation that management believes does not approximate market value.
Investments for which market
quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by
and under the general supervision of the Board of Trustees. If a security or class of securities (such as foreign securities) is valued at fair value, such value is likely to be different from the quoted or published
price for the security, if available.
The determination of fair value
often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and estimated risk premiums. Multiple inputs from various sources may be used
to determine fair value.
GAAP requires disclosure regarding
the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category. This information is disclosed following
the Fund’s Portfolio of Investments.
24
|
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
Notes to Financial Statements (continued)
October 31, 2019
Derivative instruments
The Fund invests in certain
derivative instruments, as detailed below, to meet its investment objectives. Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more securities,
currencies, commodities, indices, or other assets or instruments. Derivatives may be used to increase investment flexibility (including to maintain cash reserves while maintaining desired exposure to certain assets),
for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. The Fund may also use derivative instruments to mitigate certain investment risks,
such as foreign currency exchange rate risk, interest rate risk and credit risk. Derivatives may involve various risks, including the potential inability of the counterparty to fulfill its obligations under the terms
of the contract, the potential for an illiquid secondary market (making it difficult for the Fund to sell or terminate, including at favorable prices) and the potential for market movements which may expose the Fund
to gains or losses in excess of the amount shown in the Statement of Assets and Liabilities. The notional amounts of derivative instruments, if applicable, are not recorded in the financial statements.
A derivative instrument may suffer
a marked-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform its
obligations under the contract. The Fund’s risk of loss from counterparty credit risk on over-the-counter derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by
the Fund and the amount of any variation margin held by the counterparty, plus any replacement costs or related amounts. With exchange-traded or centrally cleared derivatives, there is reduced counterparty credit risk
to the Fund since the clearinghouse or central counterparty (CCP) provides some protection in the case of clearing member default. The clearinghouse or CCP stands between the buyer and the seller of the contract;
therefore, additional counterparty credit risk is failure of the clearinghouse or CCP. However, credit risk still exists in exchange-traded or centrally cleared derivatives with respect to initial and variation margin
that is held in a broker’s customer account. While brokers are required to segregate customer margin from their own assets, in the event that a broker becomes insolvent or goes into bankruptcy and at that time
there is a shortfall in the aggregate amount of margin held by the broker for all its clients, U.S. bankruptcy laws will typically allocate that shortfall on a pro-rata basis across all the broker’s customers
(including the Fund), potentially resulting in losses to the Fund.
In order to better define its
contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (ISDA Master Agreement)
or similar agreement with its derivatives contract counterparties. An ISDA Master Agreement is an agreement between the Fund and a counterparty that governs over-the-counter derivatives and typically 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 instrument’s payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment
in the event of default (close-out netting), including the bankruptcy or insolvency of the counterparty. Note, however, that bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or
prohibitions against the right of offset or netting in bankruptcy, insolvency or other events.
Collateral (margin) requirements
differ by type of derivative. Margin requirements are established by the clearinghouse or CCP for exchange-traded and centrally cleared derivatives. Brokers can ask for margin in excess of the minimum in certain
circumstances. Collateral terms are contract specific for over-the-counter derivatives. For over-the-counter derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by
netting the marked-to-market amount for each transaction under such agreement and comparing that amount to the value of any variation margin currently pledged by the Fund and/or the counterparty. Generally, the amount
of collateral due from or to a party has to exceed a minimum transfer amount threshold (e.g., $250,000) before a transfer has to be made. To the extent amounts due to the Fund from its counterparties are not fully
collateralized, contractually or otherwise, the Fund bears the risk of loss from counterparty nonperformance. The Fund may also pay interest expense on cash collateral received from the broker. Any interest expense
paid by the Fund is shown on the Statement of Operations. The Fund attempts to mitigate counterparty risk by only entering into agreements with counterparties that it believes have the financial resources to honor
their obligations and by monitoring the financial stability of those counterparties.
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
25
|
Notes to Financial Statements (continued)
October 31, 2019
Certain ISDA Master Agreements
allow counterparties of over-the-counter derivatives transactions to terminate derivatives contracts prior to maturity in the event the Fund’s net asset value declines by a stated percentage over a specified
time period or if the Fund fails to meet certain terms of the ISDA Master Agreement, which would cause the Fund to accelerate payment of any net liability owed to the counterparty. The Fund also has termination rights
if the counterparty fails to meet certain terms of the ISDA Master Agreement. In determining whether to exercise such termination rights, the Fund would consider, in addition to counterparty credit risk, whether
termination would result in a net liability owed from the counterparty.
For financial reporting purposes,
the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statement of Assets and Liabilities.
Futures contracts
Futures contracts are
exchange-traded and represent commitments for the future purchase or sale of an asset at a specified price on a specified date. The Fund bought and sold futures contracts to manage the duration and yield curve
exposure of the Fund versus the benchmark and to manage exposure to movements in interest rates. These instruments may be used for other purposes in future periods. Upon entering into futures contracts, the Fund bears
risks that it may not achieve the anticipated benefits of the futures contracts and may realize a loss. Additional risks include counterparty credit risk, the possibility of an illiquid market, and that a change in
the value of the contract or option may not correlate with changes in the value of the underlying asset.
Upon entering into a futures
contract, the Fund deposits cash or securities with the broker, known as a futures commission merchant (FCM), in an amount sufficient to meet the initial margin requirement. The initial margin deposit must be
maintained at an established level over the life of the contract. Cash deposited as initial margin is recorded in the Statement of Assets and Liabilities as margin deposits. Securities deposited as initial margin are
designated in the Portfolio of Investments. Subsequent payments (variation margin) are made or received by the Fund each day. The variation margin payments are equal to the daily change in the contract value and are
recorded as variation margin receivable or payable and are offset in unrealized gains or losses. The Fund 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 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 October 31, 2019:
Amount of realized gain (loss) on derivatives recognized in income
|
Risk exposure category
|
Futures
contracts
($)
|
Interest rate risk
|
(107,807)
|
The following table is a summary
of the average outstanding volume by derivative instrument for the year ended October 31, 2019:
Derivative instrument
|
Average notional
amounts ($)*
|
Futures contracts — short
|
1,533,273
|
*
|
Based on the ending daily outstanding amounts for the year ended October 31, 2019.
|
26
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Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
Notes to Financial Statements (continued)
October 31, 2019
Delayed delivery securities
The Fund may trade securities on
other than normal settlement terms, including securities purchased or sold on a “when-issued” or "forward commitment" basis. This may increase risk to the Fund since the other party to the transaction may
fail to deliver, which could cause the Fund to subsequently invest at less advantageous prices. The Fund designates cash or liquid securities in an amount equal to the delayed delivery commitment.
Security transactions
Security transactions are accounted
for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income recognition
Interest income is recorded on an
accrual basis. Market premiums and discounts, including original issue discounts, are amortized and accreted, respectively, over the expected life of the security on all debt securities, unless otherwise noted.
The Fund may place a debt security
on non-accrual status and reduce related interest income when it becomes probable that the interest will not be collected and the amount of uncollectible interest can be reasonably estimated. A defaulted debt security
is removed from non-accrual status when the issuer resumes interest payments or when collectibility of interest is reasonably assured.
Expenses
General expenses of the Trust are
allocated to the Fund and other funds of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are
charged to the Fund. Expenses directly attributable to a specific class of shares are charged to that share class.
Determination of class net asset
value
All income, expenses (other than
class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on
the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each
year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its net tax-exempt and investment company taxable income and net capital
gain, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net
income and certain other amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Distributions to shareholders
Distributions from net investment
income, if any, are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal
income tax regulations, which may differ from GAAP.
Guarantees and indemnifications
Under the Trust’s
organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition,
certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims
that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
Recent accounting pronouncements
Accounting Standards Update 2017-08
Premium Amortization on Purchased Callable Debt Securities
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
27
|
Notes to Financial Statements (continued)
October 31, 2019
In March 2017, the Financial
Accounting Standards Board issued Accounting Standards Update (ASU) No. 2017-08 Premium Amortization on Purchased Callable Debt Securities. ASU No. 2017-08 updates the accounting standards to shorten the amortization
period for certain purchased callable debt securities, held at a premium, to be amortized to the earliest call date. The update applies to securities with explicit, noncontingent call features that are callable at
fixed prices and on preset dates. The standard is effective for annual periods beginning after December 15, 2018 and interim periods within those fiscal years. Management does not expect the implementation of this
guidance to have a material impact on the financial statement amounts and footnote disclosures.
Accounting Standards Update 2018-13
Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement
In August 2018, the Financial
Accounting Standards Board issued Accounting Standards Update (ASU) No. 2018-13 Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The standard is effective for annual periods
beginning after December 15, 2019 and interim periods within those fiscal years, with early adoption permitted. After evaluation, management determined to adopt the ASU effective for the period ended July 31, 2019 and
all subsequent periods. To comply with the ASU, management implemented disclosure changes which include removal of the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, removal
of the policy for the timing of transfers between levels, removal of the description of the Level 3 valuation processes, as well as modifications to the measurement uncertainty disclosure.
Note 3. Fees and other
transactions with affiliates
Management services fees
The Fund has entered into a
Management Agreement with Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). Under the Management Agreement, the
Investment Manager provides the Fund with investment research and advice, as well as administrative and accounting services. The management services fee is an annual fee that is equal to a percentage of the
Fund’s daily net assets that declines from 0.47% to 0.31% as the Fund’s net assets increase. The effective management services fee rate for the year ended October 31, 2019 was 0.47% of the Fund’s
average daily net assets.
Compensation of board members
Members of the Board of Trustees
who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. These members of the Board of Trustees
may participate in a Deferred Compensation Plan (the Deferred Plan) which may be terminated at any time. Obligations of the Deferred Plan will be paid solely out of the Fund’s assets, and all amounts payable
under the Deferred Plan constitute a general unsecured obligation of the Fund.
Compensation of Chief Compliance
Officer
The Board of Trustees has appointed
a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated
to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
Transfer agency fees
Under a Transfer and Dividend
Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for
providing transfer agency services to the Fund. The Transfer Agent has contracted with DST Asset Manager Solutions, Inc. (DST) to serve as sub-transfer agent. The Transfer Agent pays the fees of DST for services as
sub-transfer agent and DST is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
28
|
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
Notes to Financial Statements (continued)
October 31, 2019
The Fund pays the Transfer Agent a
monthly transfer agency fee based on the number or the average value of accounts, depending on the type of account. In addition, the Fund pays the Transfer Agent a fee for shareholder services based on the number of
accounts or on a percentage of the average aggregate value of the Fund’s shares maintained in omnibus accounts up to the lesser of the amount charged by the financial intermediary or a cap established by the
Board of Trustees from time to time.
The Transfer Agent also receives
compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees. Total transfer agency fees for Institutional 2 Class and Institutional 3 Class shares are subject to an
annual limitation of not more than 0.07% and 0.02%, respectively, of the average daily net assets attributable to each share class.
For the year ended October 31,
2019, the Fund’s effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
|
Effective rate (%)
|
Class A
|
0.08
|
Advisor Class
|
0.08
|
Class C
|
0.08
|
Institutional Class
|
0.08
|
Institutional 2 Class
|
0.06
|
Institutional 3 Class
|
0.02
|
An annual minimum account balance
fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum
account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the year ended October 31, 2019, these minimum account balance fees reduced total expenses
of the Fund by $180.
Distribution and service fees
The Fund has entered into an
agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder
services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the
Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a
monthly service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class A and Class C shares of the Fund. Also under the Plans, the Fund pays a monthly
distribution fee to the Distributor at the maximum annual rate of 0.75% of the average daily net assets attributable to Class C shares of the Fund.
The Distributor has voluntarily
agreed to waive a portion of the distribution fee for Class C shares so that the distribution fee does not exceed 0.45% annually of the average daily net assets attributable to Class C shares. This arrangement may be
modified or terminated by the Distributor at any time.
Sales charges (unaudited)
Sales charges, including front-end
charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the year ended October 31, 2019, if any, are listed below:
|
Front End (%)
|
CDSC (%)
|
Amount ($)
|
Class A
|
3.00
|
0.75(a)
|
41,428
|
Class C
|
—
|
1.00(b)
|
1,368
|
(a)
|
This charge is imposed on certain investments of $500,000 or more if redeemed within 12 months after purchase.
|
(b)
|
This charge applies to redemptions within 12 months after purchase, with certain limited exceptions.
|
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
29
|
Notes to Financial Statements (continued)
October 31, 2019
The Fund’s other share
classes are not subject to sales charges.
Expenses waived/reimbursed by the
Investment Manager and its affiliates
The Investment Manager and certain
of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole
discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s
custodian, do not exceed the following annual rate(s) as a percentage of the class’ average daily net assets:
|
March 1, 2019
through
February 29, 2020
|
Prior to
March 1, 2019
|
Class A
|
0.80%
|
0.80%
|
Advisor Class
|
0.55
|
0.55
|
Class C
|
1.55
|
1.55
|
Institutional Class
|
0.55
|
0.55
|
Institutional 2 Class
|
0.53
|
0.54
|
Institutional 3 Class
|
0.49
|
0.50
|
Under the agreement governing
these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes
(including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and
brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed
money, interest, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be modified or amended only with approval from
the Investment Manager, certain of its affiliates and the Fund. Any fees waived and/or expenses reimbursed under the expense reimbursement arrangements described above are not recoverable by the Investment Manager or
its affiliates in future periods. Class C distribution fees waived by the Distributor, as discussed above, are in addition to the waiver/reimbursement commitment under the agreement.
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 October 31, 2019, these
differences were primarily due to differing treatment for deferral/reversal of wash sale losses, trustees’ deferred compensation, tax straddles, distributions, and principal and/or interest of fixed income
securities. 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 Fund did not have any permanent
differences; therefore, no reclassifications were made.
The tax character of distributions
paid during the years indicated was as follows:
Year Ended October 31, 2019
|
Year Ended October 31, 2018
|
Ordinary
income ($)
|
Tax-exempt
income ($)
|
Long-term
capital gains ($)
|
Total ($)
|
Ordinary
income ($)
|
Tax-exempt
income ($)
|
Long-term
capital gains ($)
|
Total ($)
|
124,130
|
5,665,407
|
—
|
5,789,537
|
167,870
|
6,524,216
|
371,159
|
7,063,245
|
Short-term capital gain
distributions, if any, are considered ordinary income distributions for tax purposes.
30
|
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
Notes to Financial Statements (continued)
October 31, 2019
At October 31, 2019, the components
of distributable earnings on a tax basis were as follows:
Undistributed
ordinary income ($)
|
Undistributed tax-
exempt income ($)
|
Undistributed
long-term
capital gains ($)
|
Capital loss
carryforwards ($)
|
Net unrealized
appreciation ($)
|
479,529
|
928,997
|
1,341,062
|
—
|
11,698,403
|
At October 31, 2019, 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) ($)
|
Net unrealized
appreciation ($)
|
189,445,899
|
11,834,156
|
(135,753)
|
11,698,403
|
Tax cost of investments and
unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
The following capital loss
carryforwards, determined at October 31, 2019, may be available to reduce taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code. Capital
loss carryforwards with no expiration are required to be utilized prior to any capital losses which carry an expiration date. As a result of this ordering rule, capital loss carryforwards which carry an expiration
date may be more likely to expire unused. In addition, for the year ended October 31, 2019, capital loss carryforwards utilized and expired unused, if any, were as follows:
No expiration
short-term ($)
|
No expiration
long-term ($)
|
Total ($)
|
Utilized ($)
|
Expired ($)
|
—
|
—
|
—
|
334,020
|
—
|
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 $88,063,051 and $89,663,898, respectively, for the year ended October 31, 2019. The amount of purchase and
sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Interfund
lending
Pursuant to an exemptive order
granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and,
except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject
to certain restrictions.
Interfund loans are subject to the
risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject
to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund did not borrow or lend
money under the Interfund Program during the year ended October 31, 2019.
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
31
|
Notes to Financial Statements (continued)
October 31, 2019
Note 7. Line of credit
The Fund has access to a
revolving credit facility with a syndicate of banks led by Citibank, N.A., HSBC Bank USA, N.A. and JPMorgan Chase Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for
other temporary or emergency purposes. The credit facility, which is a collective agreement between the Fund and certain other funds managed by the Investment Manager or an affiliated investment manager, severally and
not jointly, permits collective borrowings up to $1 billion. Interest is charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the
one-month LIBOR rate and (iii) the overnight bank funding rate, plus in each case, 1.00%. Each borrowing under the credit facility matures no later than 60 days after the date of borrowing. The Fund also pays a
commitment fee equal to its pro rata share of the unused amount of the credit facility at a rate of 0.15% per annum. The commitment fee is included in other expenses in the Statement of Operations. This agreement
expires annually in December unless extended or renewed.
The Fund had no borrowings during
the year ended October 31, 2019.
Note 8. Significant
risks
Credit risk
Credit risk is the risk that the
value of debt securities in the Fund’s portfolio may decline because the issuer defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations,
such as making payments to the Fund when due. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. Lower rated or unrated debt instruments held by the Fund may
present increased credit risk as compared to higher-rated debt instruments.
Geographic concentration risk
Because the Fund invests
substantially in municipal securities issued by the state identified in the Fund’s name and political sub-divisions of that state, the Fund will be particularly affected by adverse tax, legislative, regulatory,
demographic or political changes as well as changes impacting the state’s financial, economic or other condition and prospects. In addition, because of the relatively small number of issuers of tax-exempt
securities in the state, the Fund may invest a higher percentage of assets in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly. The value of municipal and other
securities owned by the Fund also may be adversely affected by future changes in federal or state income tax laws.
Interest rate risk
Interest rate risk is the risk of
losses attributable to changes in interest rates. In general, if prevailing interest rates rise, the values of debt securities tend to fall, and if interest rates fall, the values of debt securities tend to rise.
Actions by governments and central banking authorities can result in increases in interest rates. Increasing interest rates may negatively affect the value of debt securities held by the Fund, resulting in a negative
impact on the Fund’s performance and net asset value per share. In general, the longer the maturity or duration of a debt security, the greater its sensitivity to changes in interest rates.
Liquidity risk
Liquidity risk is the risk
associated with a lack of marketability of investments which may make it difficult to sell the investment at a desirable time or price. Changing regulatory, market or other conditions or environments (for example, the
interest rate or credit environments) may adversely affect the liquidity of the Fund’s investments. The Fund may have to accept a lower selling price for the holding, sell other investments, or forego another,
more appealing investment opportunity. Generally, the less liquid the market at the time the Fund sells a portfolio investment, the greater the risk of loss or decline of value to the Fund. A less liquid market can
lead to an increase in Fund redemptions, which may negatively impact Fund performance and net asset value per share, including, for example, if the Fund is forced to sell securities in a down market.
32
|
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
Notes to Financial Statements (continued)
October 31, 2019
Non-diversification risk
A non-diversified fund is permitted
to invest a greater percentage of its total assets in fewer issuers than a diversified fund. This increases the risk that a change in the value of any one investment held by the Fund could affect the overall value of
the Fund more than it would affect that of a diversified fund holding a greater number of investments. Accordingly, the Fund’s value will likely be more volatile than the value of a more diversified fund.
Shareholder concentration risk
At October 31, 2019, one
unaffiliated shareholder of record owned 14.8% of the outstanding shares of the Fund in one or more accounts. The Fund has no knowledge about whether any portion of those shares was owned beneficially. Affiliated
shareholders of record owned 24.1% of the outstanding shares of the Fund in one or more accounts. Subscription and redemption activity by concentrated accounts may have a significant effect on the operations of the
Fund. In the case of a large redemption, the Fund may be forced to sell investments at inopportune times, including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of
less liquid positions. Large redemptions could result in decreased economies of scale and increased operating expenses for non-redeeming Fund shareholders.
Note 9. Subsequent
events
Management has evaluated the
events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 10. Information
regarding pending and settled legal proceedings
Ameriprise Financial and certain
of its affiliates have historically been involved in a number of legal, arbitration and regulatory proceedings, including routine litigation, class actions, and governmental actions, concerning matters arising in
connection with the conduct of their business activities. Ameriprise Financial believes that the Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject
of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with
the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and regulatory matters that relate to
Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that
these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe
proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to
uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines,
penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial.
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
33
|
Report of Independent Registered Public
Accounting Firm
To the Board of Trustees of Columbia
Funds Series Trust I and Shareholders of Columbia Strategic New York Municipal Income Fund
Opinion on the Financial
Statements
We have audited the accompanying
statement of assets and liabilities, including the portfolio of investments, of Columbia Strategic New York Municipal Income Fund (one of the funds constituting Columbia Funds Series Trust I, hereafter referred to as
the "Fund") as of October 31, 2019, the related statement of operations for the year ended October 31, 2019, the statement of changes in net assets for each of the two years in the period ended October 31, 2019,
including the related notes, and the financial highlights for each of the periods indicated therein (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 October 31, 2019, 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 October 31, 2019 and the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the
responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of
the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these
financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud.
Our audits included performing
procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test
basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating
the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2019 by correspondence with the custodian and brokers; when replies were not received
from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Minneapolis, Minnesota
December 20, 2019
We have served as the auditor of
one or more investment companies within the Columbia Funds Complex since 1977.
34
|
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
Federal Income Tax
Information
(Unaudited)
The Fund hereby designates the
following tax attributes for the fiscal year ended October 31, 2019. Shareholders will be notified in early 2020 of the amounts for use in preparing 2019 income tax returns.
Capital
gain
dividend
|
Exempt-
interest
dividends
|
$1,408,115
|
97.86%
|
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.
Exempt-interest dividends. The
percentage of net investment income distributed during the fiscal year that qualifies as exempt-interest dividends for federal income tax purposes. A portion of the income may be subject to federal alternative minimum
tax.
TRUSTEES AND
OFFICERS
The Board oversees the Fund’s
operations and appoints 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 Trustees 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. The year set forth beneath Length of Service
in the table below is the year in which the Trustee was first appointed or elected as Trustee to any Fund currently in the Columbia Funds Complex or a predecessor thereof. Under current Board policy, members serve
terms of indefinite duration.
Independent trustees
Name, address, year of birth
|
Position held with the Trust and length of service
|
Principal occupation(s) during the past five years and other relevant professional experience
|
Number of Funds in the Columbia Fund Complex overseen
|
Other directorships held by Trustee during the past five years
|
Janet Langford Carrig
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1957
|
Trustee
1996
|
Senior Vice President, General Counsel and Corporate Secretary, ConocoPhillips (independent energy company), September 2007-October 2018
|
71
|
Director, EQT Corporation (natural gas producer)
|
Douglas A. Hacker
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1955
|
Trustee and Chairman of the Board
1996
|
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
|
71
|
Director, Spartan Nash Company (food distributor); Director, Aircastle Limited (aircraft leasing); 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
|
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
35
|
TRUSTEES AND OFFICERS (continued)
Independent trustees (continued)
Name, address, year of birth
|
Position held with the Trust and length of service
|
Principal occupation(s) during the past five years and other relevant professional experience
|
Number of Funds in the Columbia Fund Complex overseen
|
Other directorships held by Trustee during the past five years
|
Nancy T. Lukitsh
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1956
|
Trustee
2011
|
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
|
71
|
None
|
David M. Moffett
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1952
|
Trustee
2011
|
Retired. Consultant to Bridgewater and Associates
|
71
|
Director, CSX Corporation (transportation suppliers); Director, Genworth Financial, Inc. (financial and insurance products and services);
Director, PayPal Holdings Inc. (payment and data processing services); Trustee, University of Oklahoma Foundation; former Director, eBay Inc. (online trading community), 2007-2015; and former Director, CIT Bank, CIT
Group Inc. (commercial and consumer finance), 2010-2016
|
John J. Neuhauser
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1943
|
Trustee
1984
|
President, Saint Michael’s College, August 2007-June 2018; Director or Trustee of several non-profit organizations, including University
of Vermont Medical Center; Academic Vice President and Dean of Faculties, Boston College, August 1999-October 2005; University Professor, Boston College, November 2005-August 2007
|
71
|
Director, Liberty All-Star Equity Fund and Liberty All- Star Growth Fund (closed-end funds)
|
Patrick J. Simpson
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1944
|
Trustee
2000
|
Of Counsel, Perkins Coie LLP (law firm) since 2015; Partner, Perkins Coie LLP, 1988-2014
|
71
|
Former Director, M Fund, Inc. (M Funds mutual fund family), July 2018-July 2019
|
Consultants to the Independent
Trustees*
Name, address, year of birth
|
Position held with the Trust 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
|
J. Kevin Connaughton
c/o Columbia
Management Investment
Advisers, LLC,
225 Franklin Street
Mail Drop BX32 05228,
Boston, MA 02110
1964
|
Independent Trustee Consultant
2016
|
Independent Trustee Consultant, Columbia Funds since March 2016; Adjunct Professor of Finance, Bentley
University since November 2017; Managing Director and General Manager of Mutual Fund Products, Columbia Management Investment Advisers, LLC, May 2010-February 2015; President, Columbia Funds, 2009-2015; and senior
officer of Columbia Funds and affiliated funds, 2003-2015
|
71
|
Director, The Autism Project since March 2015; former Trustee, New Century Portfolios, March 2015-December 2017; formerly on
Board of Governors, Gateway Healthcare, January 2016 – December 2017
|
36
|
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
TRUSTEES AND OFFICERS (continued)
Consultants to the Independent Trustees* (continued)
Name, address, year of birth
|
Position held with the Trust 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
|
Olive Darragh
c/o Columbia
Management Investment
Advisers, LLC,
225 Franklin Street,
Mail Drop BX32 05228,
Boston, MA 02110
1962
|
Independent Trustee Consultant 2019
|
Independent Trustee Consultant, Columbia Funds since June 2019; Managing Director of Darragh Inc. (a strategy and talent management consulting
firm) since 2010; Founder and CEO, Zolio (an investment management talent identification platform) since 2004; Partner, Tudor Investments, 2004-2010; Senior Partner, McKinsey & Company, 2001-2004
|
71
|
Director, University of Edinburgh Business School; former Director, Boston Public Library Foundation
|
Natalie A. Trunow
c/o Columbia
Management Investment
Advisers, LLC,
225 Franklin Street
Mail Drop BX32 05228,
Boston, MA 02110
1967
|
Independent Trustee Consultant
2016
|
Independent Trustee Consultant, Columbia Funds since September 2016; Chief Executive Officer, Millennial
Portfolio Solutions LLC (asset management and consulting services) since January 2016; Director of Investments, Casey Family Programs, April 2016-September 2016; Senior Vice President and Chief Investment Officer,
Calvert Investments, August 2008-January 2016; Section Head and Portfolio Manager, General Motors Asset Management, June 1997-August 2008
|
71
|
Director, Health Services for Children with Special Needs, Inc.; Director, Consumer Credit Counseling Services (formerly
Guidewell Financial Solutions)
|
*
|
J. Kevin Connaughton was appointed consultant to the Independent Trustees effective March 1, 2016. Olive Darragh was appointed consultant to the Independent Trustees effective June
10, 2019. Natalie A. Trunow was appointed consultant to the Independent Trustees effective September 1, 2016. Shareholders of the Funds are expected to be asked to elect each of Mr. Connaughton, Ms. Darragh and Ms.
Trunow as a Trustee at a future shareholder meeting.
|
Interested trustee affiliated with
Investment Manager*
Name, address, year of birth
|
Position held with the Trust 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
|
William F. Truscott
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
1960
|
Trustee
2012
|
Chairman of the Board and President, Columbia Management Investment Advisers, LLC since May 2010 and
February 2012, respectively; Chief Executive Officer, Global Asset Management, Ameriprise Financial, Inc. since September 2012 (previously Chief Executive Officer, U.S. Asset Management & President, Annuities, May
2010-September 2012); Director and Chief Executive Officer, Columbia Management Investment Distributors, Inc. since May 2010 and February 2012, respectively; Chairman of the Board and Chief Executive Officer,
RiverSource Distributors, Inc. since 2006; Director, Threadneedle Asset Management Holdings, SARL since 2014; President and Chief Executive Officer, Ameriprise Certificate Company, 2006-August 2012
|
192
|
Chairman of the Board, Columbia Management Investment Advisers, LLC since May 2010; Director, Columbia Management Investment
Distributors, Inc. since May 2010; former Director, Ameriprise Certificate Company, August 2006 - January 2013
|
*
|
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, visiting columbiathreadneedleus.com/investor/ or contacting your
financial intermediary.
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
37
|
TRUSTEES AND OFFICERS (continued)
The Board has appointed 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, including principal occupations during the past five years, although their specific titles may have varied over the
period. In addition to Mr. Truscott, who is Senior Vice President, 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
|
Christopher O. Petersen
5228 Ameriprise
Financial Center
Minneapolis, MN 55474
Born 1970
|
President and Principal Executive Officer (2015)
|
Vice President and Lead Chief Counsel, Ameriprise Financial, Inc. since January 2015 (previously Vice President and Chief Counsel, January
2010 - December 2014); officer of Columbia Funds and affiliated funds since 2007.
|
Michael G. Clarke
225 Franklin Street
Boston, MA 02110
Born 1969
|
Chief Financial Officer (Principal Financial Officer) (2009) and Senior Vice President (2019)
|
Vice President, Head of North American Operations, and Co-Head of Global Operations, Columbia Management Investment Advisers, LLC, since June
2019 (previously Vice President – Accounting and Tax, May 2010 – May 2019); senior officer of Columbia Funds and affiliated funds since 2002 (previously Treasurer and Chief Accounting Officer, January 2009
- January 2019 and December 2015 - January 2019, respectively).
|
Joseph Beranek
5890 Ameriprise
Financial Center
Minneapolis, MN 55474
Born 1965
|
Treasurer and Chief Accounting Officer (Principal Accounting Officer) (2019)
|
Vice President — Mutual Fund Accounting and Financial Reporting, Columbia Management Investment Advisers, LLC, since December 2018 and
March 2017, respectively (previously Vice President — Pricing and Corporate Actions, May 2010 - March 2017).
|
Paul B. Goucher
485 Lexington Avenue
New York, NY 10017
Born 1968
|
Senior Vice President (2011) and Assistant Secretary (2008)
|
Senior Vice President and Assistant General Counsel, Ameriprise Financial, Inc. since January 2017 (previously Vice President and Lead Chief
Counsel, November 2008 - January 2017 and January 2013 - January 2017, respectively); Vice President, Chief Legal Officer and Assistant Secretary, Columbia Management Investment Advisers, LLC since March 2015
(previously Vice President and Assistant Secretary, May 2010 – March 2015).
|
Thomas P. McGuire
225 Franklin Street
Boston, MA 02110
Born 1972
|
Senior Vice President and Chief Compliance Officer (2012)
|
Vice President — Asset Management Compliance, Ameriprise Financial, Inc., since May 2010; Chief Compliance Officer, Ameriprise
Certificate Company since September 2010.
|
Colin Moore
225 Franklin Street
Boston, MA 02110
Born 1958
|
Senior Vice President (2010)
|
Executive Vice President and Global Chief Investment Officer, Ameriprise Financial, Inc., since July 2013; Executive Vice President and Global
Chief Investment Officer, Columbia Management Investment Advisers, LLC since July 2013.
|
Ryan C. Larrenaga
225 Franklin Street
Boston, MA 02110
Born 1970
|
Senior Vice President (2017), Chief Legal Officer (2017), and Secretary (2015)
|
Vice President and Chief Counsel, Ameriprise Financial, Inc. since August 2018 (previously Vice President and Group Counsel, August 2011 -
August 2018); officer of Columbia Funds and affiliated funds since 2005.
|
Michael E. DeFao
225 Franklin Street
Boston, MA 02110
Born 1968
|
Vice President (2011) and Assistant Secretary (2010)
|
Vice President and Chief Counsel, Ameriprise Financial, Inc. since May 2010.
|
Lyn Kephart-Strong
5228 Ameriprise
Financial Center
Minneapolis, MN 55474
Born 1960
|
Vice President (2015)
|
President, Columbia Management Investment Services Corp. since October 2014; Vice President & Resolution Officer,
Ameriprise Trust Company since August 2009.
|
38
|
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
Board Consideration
and Approval of Management
Agreement
On June 12, 2019, the Board of
Trustees (the Board) and the Trustees who are not interested persons (as defined in the Investment Company Act of 1940) (the Independent Trustees) of Columbia Funds Series Trust I (the Trust) unanimously approved the
continuation of the Management Agreement (the Management Agreement) with Columbia Management Investment Advisers, LLC (the Investment Manager) with respect to Columbia Strategic New York Municipal Income Fund (the
Fund), a series of the Trust. As detailed below, the Board’s Advisory Fees and Expenses Committee (the Committee) and the Board met on multiple occasions to review and discuss, among themselves, with the
management team of the Investment Manager and with an independent fee consultant, materials provided by the Investment Manager, the independent fee consultant and others before determining to approve the continuation
of the Management Agreement.
In connection with their
deliberations regarding the continuation of the Management Agreement, the Committee and the Board evaluated materials requested from the Investment Manager regarding the Fund and the Management Agreement, and
discussed these materials with representatives of the Investment Manager at Committee meetings held on March 5, 2019, April 25, 2019 and June 11, 2019 and at Board meetings held on March 6, 2019 and June 12, 2019. In
addition, the Board and its various committees consider matters bearing on the Management Agreement at other meetings throughout the year and in prior years and meet regularly with senior management of the Trust and
the Investment Manager. Through the Board’s Investment Oversight Committees, Trustees also meet with selected portfolio managers of the funds the Trustees oversee and with other investment personnel at various
times throughout the year. The Committee and the Board also consulted with the independent fee consultant, Fund counsel and the Independent Trustees’ independent legal counsel, who advised on various matters
with respect to the Committee’s and the Board’s considerations and otherwise assisted the Committee and the Board in their deliberations. On June 11, 2019, the Committee recommended that the Board approve
the continuation of the Management Agreement. On June 12, 2019, the Board, including the Independent Trustees, voting separately, unanimously approved the continuation of the Management Agreement for the Fund.
The Committee and the Board
considered all information that they, their legal counsel or the Investment Manager believed reasonably necessary to evaluate and to determine whether to recommend for approval or approve the continuation of the
Management Agreement. The information and factors considered by the Committee and the Board in recommending for approval or approving the continuation of the Management Agreement for the Fund included the
following:
•
|
Information on the investment performance of the Fund relative to the performance of a group of mutual funds determined to be comparable to the Fund by an independent third-party data provider, as well as
performance relative to benchmarks;
|
•
|
Information on the Fund’s management fees and total expenses, including information comparing the Fund’s expenses to those of a group of comparable mutual funds, as determined by the independent
third-party data provider;
|
•
|
The Investment Manager’s agreement to contractually limit or cap total operating expenses for the Fund through February 29, 2020 so that total operating expenses (excluding certain fees and expenses, such as
transaction costs and certain other investment related expenses, interest, taxes, acquired fund fees and expenses, and infrequent and/or unusual expenses) would not exceed a specified annual rate, as a percentage of
the Fund’s net assets;
|
•
|
The terms and conditions of the Management Agreement;
|
•
|
The current and proposed terms and conditions of other agreements and arrangements with affiliates of the Investment Manager relating to the operations of the Fund, including agreements with respect to the provision
of distribution, transfer agency and shareholder services to the Fund;
|
•
|
Descriptions of various functions performed by the Investment Manager under the Management Agreement, including portfolio management and portfolio trading practices;
|
•
|
Information regarding the management fees of similarly-managed portfolios of other clients of the Investment Manager, including institutional accounts and collective trusts;
|
•
|
Information regarding the reputation, regulatory history and resources of the Investment Manager, including information regarding senior management, portfolio managers and other personnel;
|
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
39
|
Board Consideration and Approval of
Management
Agreement (continued)
•
|
Information regarding the capabilities of the Investment Manager with respect to compliance monitoring services, including an assessment of the Investment Manager’s compliance system by the Fund’s Chief
Compliance Officer; and
|
•
|
The profitability to the Investment Manager and its affiliates from their relationships with the Fund.
|
Nature, extent and quality of
services provided under the Management Agreement
The Committee and the Board
considered the nature, extent and quality of services provided to the Fund by the Investment Manager and its affiliates under the Management Agreement and under separate agreements for the provision of transfer agency
and shareholder services, and the resources dedicated to the Fund and the other Columbia Funds by the Investment Manager and its affiliates. The Committee and the Board considered, among other things, the Investment
Manager’s ability to attract, motivate and retain highly qualified research, advisory and supervisory investment professionals (including compensation programs for personnel involved in fund management,
reputation and other attributes), the portfolio management services provided by those investment professionals, and the quality of the Investment Manager’s investment research capabilities and trade execution
services. The Committee and the Board also considered the potential benefits to shareholders of investing in a mutual fund that is part of a fund complex offering exposure to a variety of asset classes and investment
disciplines and providing a variety of fund and shareholder services.
The Committee and the Board also
considered the professional experience and qualifications of the senior personnel of the Investment Manager, which included consideration of the Investment Manager’s experience with funds using an investment
strategy similar to that used by the Investment Manager for the Fund. The Committee and the Board noted the compliance programs of and the compliance-related resources provided to the Fund by the Investment Manager
and its affiliates and the resources dedicated by the Investment Manager and its affiliates to risk management, and considered the Investment Manager’s ability to provide administrative services to the Fund and
coordinate the activities of the Fund’s other service providers. After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the
nature, extent and quality of the services provided to the Fund under the Management Agreement supported the continuation of the Management Agreement.
Investment performance
The Committee and the Board
reviewed information about the performance of the Fund over various time periods, including performance information relative to benchmarks, information that compared the performance of the Fund to the performance of a
group of comparable mutual funds as determined by the independent third-party data provider, and information and analysis provided by the independent fee consultant. The Committee and the Board also reviewed a
description of the third party’s methodology for identifying the Fund’s peer groups for purposes of performance and expense comparisons. Although the Fund’s performance lagged that of a relevant peer
group for certain (although not necessarily all) periods, the Committee and the Board concluded that other factors relevant to performance were sufficient, in light of other considerations, to support continuation of
the Management Agreement. Those factors included one or more of the following: (i) that the Fund’s performance, although lagging in certain recent periods, was stronger over the longer term; (ii) that the
underperformance was attributable, to a significant extent, to investment decisions that were reasonable and consistent with the Fund’s investment strategy and policies and that the Fund was performing within a
reasonable range of expectations, given those investment decisions, market conditions and the Fund’s investment strategy; (iii) that the Fund’s performance was competitive when compared to other relevant
performance benchmarks or peer groups; and (iv) that the Investment Manager had taken or was taking steps designed to help improve the Fund’s investment performance, including, but not limited to, replacing
portfolio managers, enhancing the resources supporting the portfolio managers, or modifying investment strategies.
The Committee and the Board noted
that, through December 31, 2018, the Fund’s performance was in the eighty-fourth, fifty-sixth and forty-fourth percentile (where the best performance would be in the first percentile) of its category selected by
the independent third-party data provider for the purposes of performance comparisons for the one-, three- and five-year periods, respectively.
40
|
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
Board Consideration and Approval of
Management
Agreement (continued)
The Committee and the Board also considered the
Investment Manager’s performance and reputation generally, the Investment Manager’s historical responsiveness to Board concerns about performance, and the Investment Manager’s willingness to take
steps intended to improve performance. After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the performance of the Fund and the
Investment Manager was sufficient, in light of other considerations, to support the continuation of the Management Agreement.
Investment management fee rates
and other expenses
The Committee and the Board
considered the management fees charged to the Fund under the Management Agreement as well as the total expenses incurred by the Fund. In assessing the reasonableness of the fees under the Management Agreement, the
Committee and the Board considered, among other information, the Fund’s total expense ratio as a percentage of average daily net assets. The Committee and the Board considered data provided by the independent
third-party data provider and the independent fee consultant. The Committee and the Board noted that, as of December 31, 2018, the Fund’s actual management fee and net total expense ratio were ranked in the
second and third quintiles, respectively, (where the lowest fees and expenses would be in the first quintile) against the Fund’s expense universe as determined by the independent third-party data provider for
purposes of expense comparison. The Committee and the Board also took into account the fee waiver and expense limitation arrangements agreed to by the Investment Manager, as noted above.
The Committee and the Board also
received and considered information about the management fees charged by the Investment Manager to institutional accounts. In considering the fees charged to those accounts, the Committee and the Board took into
account, among other things, the Investment Manager’s representations about the differences between managing mutual funds as compared to other types of accounts, including differences in the services provided,
differences in the risk profile of such business for the Investment Manager and the additional resources required to manage mutual funds effectively. The Committee and the Board also received and considered
information about the fees charged by the Investment Manager for sub-advisory services it provides to comparable unaffiliated funds. In evaluating the Fund’s management fees, the Committee and the Board also
took into account the demands, complexity and quality of the investment management of the Fund.
After reviewing these and related
factors, the Committee and the Board concluded, within the context of their overall conclusions, that the management fee rates and expenses of the Fund, in light of other considerations, supported the continuation of
the Management Agreement.
Costs of services provided and
profitability
The Committee and the Board also
took note of the costs the Investment Manager and its affiliates incur in connection with the services provided and the profitability to the Investment Manager and its affiliates from their relationships with the
Fund, and the efforts undertaken by the Investment Manager and its affiliates to manage efficiently their costs to provide such services.
The Committee and the Board also
considered the compensation directly or indirectly received by the Investment Manager’s affiliates in connection with their relationships with the Fund. The Committee and the Board reviewed information provided
by management as to the profitability to the Investment Manager and its affiliates of their relationships with the Fund, information about the allocation of expenses used to calculate profitability, and comparisons of
profitability levels realized in 2018 to profitability levels realized in 2017. When reviewing profitability, the Committee and the Board also considered court cases in which adviser profitability was an issue in
whole or in part, the performance of similarly managed funds, the performance of the Fund, and the expense ratio of the Fund. In addition, the Committee and the Board considered information provided by the Investment
Manager regarding the Investment Manager’s financial condition and comparing its profitability to that of other asset management firms that are, or are subsidiaries of, publicly traded companies. In this regard,
the Committee and the Board also considered data provided by the independent fee consultant.
After reviewing these and related
factors, the Committee and the Board concluded, within the context of their overall conclusions, that the costs of services provided and the profitability to the Investment Manager and its affiliates from their
relationships with the Fund supported the continuation of the Management Agreement.
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
41
|
Board Consideration and Approval of
Management
Agreement (continued)
Economies of scale
The Committee and the Board
considered the potential existence of economies of scale in the provision by the Investment Manager of services to the Fund, to groups of related funds, and to the Investment Manager’s investment advisory
clients as a whole, and whether those economies of scale were shared with the Fund through breakpoints in investment management fees or other means, such as expense limitation arrangements and additional investments
by the Investment Manager in investment, trading, compliance and other resources. The Committee and the Board noted that the management fee schedules for the Fund contained breakpoints that would reduce the fee rate
on assets above specified threshold levels.
In considering these matters, the
Committee and the Board also considered the costs of the services provided and the profitability to the Investment Manager and its affiliates from their relationships with the Fund, as noted above. After reviewing
these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the extent to which any economies of scale were expected to be shared with the Fund supported the
continuation of the Management Agreement.
Other benefits to the Investment
Manager
The Committee and the Board
received and considered information regarding “fall-out” or ancillary benefits received by the Investment Manager and its affiliates as a result of their relationships with the Fund, such as the engagement
of the Investment Manager’s affiliates to provide distribution, transfer agency and shareholder services to the Fund. In this regard, among other matters, the Committee and the Board considered that the
Fund’s distributor retains a portion of the distribution fees from the Fund and receives a portion of the sales charges on sales or redemptions of certain classes of shares of the Fund. The Committee and the
Board also considered the benefits of research made available to the Investment Manager by reason of brokerage commissions generated by the Fund’s securities transactions, and reviewed information about the
Investment Manager’s practices with respect to considering brokerage and research services when allocating portfolio transactions. In this connection, the Board also noted that the amount of research made
available to the Investment Manager by reason of brokerage commissions had been declining over time, and may decline further. The Committee and the Board recognized that the Investment Manager’s profitability
would be somewhat lower without these benefits.
Conclusion
The Committee and the Board
reviewed all of the above considerations in reaching their decisions to recommend or approve the continuation of the Management Agreement. In their deliberations, the Trustees did not identify any particular
information that was all-important or controlling, and individual Trustees may have attributed different weights to the various factors. Based on their evaluation of all factors that they deemed to be material,
including those factors described above, and assisted by the advice of independent legal counsel, the Board, including the Independent Trustees, voting separately, unanimously approved the continuation of the
Management Agreement.
42
|
Columbia Strategic New York Municipal Income Fund | Annual Report 2019
|
[THIS PAGE INTENTIONALLY LEFT
BLANK]
Columbia Strategic New York Municipal Income Fund
P.O. Box 219104
Kansas City, MO 64121-9104
Please read and consider the
investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus and summary prospectus, which contains this and other important information about the Fund, go to
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments
(Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2019 Columbia Management Investment
Advisers, LLC.
columbiathreadneedleus.com/investor/
Annual Report
October 31, 2019
Columbia New York
Intermediate Municipal Bond Fund
Beginning on January 1, 2021, as
permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports like this one will no longer be sent by mail, unless you
specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (columbiathreadneedleus.com/investor/), and each time a report is posted you will be notified
by mail and provided with a website address to access the report.
If you have already elected to
receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically
at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, for Fund shares held directly with the Fund, by calling 800.345.6611 or by enrolling in “eDelivery” by logging
into your account at columbiathreadneedleus.com/investor/.
You may elect to receive all future
reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue receiving paper copies of your shareholder reports. If you
invest directly with the Fund, you can call 800.345.6611 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive paper reports will apply to all Columbia
Funds held in your account if you invest through a financial intermediary or all Columbia Funds held with the fund complex if you invest directly with the Fund.
Not FDIC Insured • No bank
guarantee • May lose value
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3
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5
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7
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8
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16
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18
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19
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22
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26
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34
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35
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35
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39
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Columbia New York Intermediate
Municipal Bond Fund (the Fund) mails one shareholder report to each shareholder address, unless such shareholder elected to receive shareholder reports from the Fund electronically. If you would like more than one
report, please call shareholder services at 800.345.6611 and additional reports will be sent to you.
Proxy voting policies and
procedures
The policy of the Board of Trustees
is to vote the proxies of the companies in which the Fund holds investments consistent with the procedures as stated in the Statement of Additional Information (SAI). You may obtain a copy of the SAI without charge by
calling 800.345.6611; contacting your financial intermediary; visiting columbiathreadneedleus.com/investor/; or searching the website of the Securities and Exchange Commission (SEC) at sec.gov. Information regarding
how the Fund voted proxies relating to portfolio securities is filed with the SEC by August 31st for the most recent 12-month period ending June 30th of that year, and is available without charge by visiting
columbiathreadneedleus.com/investor/, or searching the website of the SEC at sec.gov.
Quarterly schedule of
investments
The Fund files a complete schedule
of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT, and for reporting periods ended prior to March 31, 2019, on Form N-Q. The Fund’s Form N-Q and 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-Q or Form N-PORT, can also be obtained without charge, upon request, by calling
800.345.6611.
Additional Fund information
For more information about the
Fund, please visit columbiathreadneedleus.com/investor/ or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 7 p.m. Eastern time.
Fund investment manager
Columbia Management Investment Advisers, LLC (the
Investment Manager)
225 Franklin Street
Boston, MA 02110
Fund distributor
Columbia Management Investment Distributors,
Inc.
225 Franklin Street
Boston, MA 02110
Fund transfer agent
Columbia Management Investment Services Corp.
P.O. Box 219104
Kansas City, MO 64121-9104
Columbia New York Intermediate Municipal Bond
Fund | Annual Report 2019
Investment objective
The Fund
seeks as high a level of current interest income exempt from federal income tax and, to the extent possible, from New York individual income tax, as is consistent with relative stability of principal.
Portfolio management
Paul Fuchs, CFA
Lead Portfolio Manager
Managed Fund since 2012
Anders Myhran, CFA
Portfolio Manager
Managed Fund since May 2019
Deborah Vargo
Portfolio Manager
Managed Fund since 2017
Average annual total returns (%) (for the period ended October 31, 2019)
|
|
|
Inception
|
1 Year
|
5 Years
|
10 Years
|
Class A
|
Excluding sales charges
|
11/25/02
|
7.96
|
2.53
|
3.23
|
|
Including sales charges
|
|
4.76
|
1.90
|
2.92
|
Advisor Class*
|
03/19/13
|
8.23
|
2.80
|
3.49
|
Class C
|
Excluding sales charges
|
11/25/02
|
7.47
|
2.09
|
2.79
|
|
Including sales charges
|
|
6.47
|
2.09
|
2.79
|
Institutional Class
|
12/31/91
|
8.23
|
2.80
|
3.49
|
Institutional 2 Class*
|
03/01/16
|
8.29
|
2.85
|
3.51
|
Institutional 3 Class*
|
03/01/17
|
8.41
|
2.86
|
3.52
|
Class V
|
Excluding sales charges
|
12/31/91
|
8.07
|
2.65
|
3.34
|
|
Including sales charges
|
|
2.95
|
1.65
|
2.83
|
Bloomberg Barclays New York 3-15 Year Blend Municipal Bond Index
|
|
8.43
|
3.01
|
3.82
|
Bloomberg Barclays 3-15 Year Blend Municipal Bond Index
|
|
8.64
|
3.17
|
4.00
|
Returns for Class A shares are shown
with and without the maximum initial sales charge of 3.00%. Returns for Class C shares are shown with and without the 1.00% contingent deferred sales charge for the first year only. Returns for Class V shares are
shown with and without the maximum initial sales charge of 4.75%. The Fund’s other share classes are not subject to sales charges and have limited eligibility. Please see the Fund’s prospectus for details.
Performance for different share classes will vary based on differences in sales charges and fees associated with each share class. All results shown assume reinvestment of distributions during the period. Returns do
not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results reflect the effect of any fee waivers or reimbursements of Fund expenses by
Columbia Management Investment Advisers, LLC and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower.
The performance information shown
represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than
their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by contacting your financial
intermediary, visiting columbiathreadneedleus.com/investor/ or calling 800.345.6611.
*
|
The returns shown for periods prior to the share class inception date (including returns for the Life of the Fund, if shown, which are since Fund inception) include the returns of the Fund’s oldest share
class. Since the Fund launched more than one share class at its inception, Institutional Class shares were used. These returns are adjusted to reflect any higher class-related operating expenses of the newer share
classes, as applicable. Please visit columbiathreadneedleus.com/investor/investment-products/mutual-funds/appended-performance for more information.
|
The Bloomberg Barclays New York 3-15
Year Blend Municipal Bond Index tracks investment grade bonds from the state of New York and its municipalities.
The Bloomberg Barclays 3-15 Year
Blend Municipal Bond Index is an unmanaged index that tracks the performance of municipal bonds issued after December 31, 1990, with remaining maturities between 2 and 17 years and at least $7 million in principal
amount outstanding.
Indices are not available for
investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes or other expenses of investing. Securities in the Fund may not match those in an index.
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
3
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Fund at a Glance (continued)
Performance of a hypothetical $10,000 investment (October 31, 2009 — October 31, 2019)
The chart above shows the change in
value of a hypothetical $10,000 investment in Class A shares of Columbia New York Intermediate Municipal Bond Fund during the stated time period, and does not reflect the deduction of taxes that a shareholder may pay
on Fund distributions or on the redemption of Fund shares.
Quality breakdown (%) (at October 31, 2019)
|
AAA rating
|
7.1
|
AA rating
|
38.7
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A rating
|
46.5
|
BBB rating
|
4.5
|
Not rated
|
3.2
|
Total
|
100.0
|
Percentages indicated are based
upon total fixed income investments.
Bond ratings apply to the underlying
holdings of the Fund and not the Fund itself and are divided into categories ranging from highest to lowest credit quality, determined by using the middle rating of Moody’s, S&P and Fitch, after dropping the
highest and lowest available ratings. When ratings are available from only two rating agencies, the lower rating is used. When a rating is available from only one rating agency, that rating is used. When a bond is not
rated by any rating agency, it is designated as “Not rated.” Credit quality ratings assigned by a rating agency are subjective opinions, not statements of fact, and are subject to change, including daily.
The ratings assigned by credit rating agencies are but one of the considerations that the Investment Manager and/or Fund’s subadviser incorporates into its credit analysis process, along with such other
issuer-specific factors as cash flows, capital structure and leverage ratios, ability to de-leverage (repay) through free cash flow, quality of management, market positioning and access to capital, as well as such
security-specific factors as the terms of the security (e.g., interest rate and time to maturity) and the amount and type of any collateral.
4
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Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
Manager Discussion of Fund Performance
During the 12-month period that
ended October 31, 2019, the Fund’s Class A shares returned 7.96% excluding sales charges. Institutional Class shares of the Fund returned 8.23%. During the same 12-month period, the Fund’s benchmark, the
Bloomberg Barclays New York 3-15 Year Blend Municipal Bond Index, returned 8.43% and the broader Bloomberg Barclays 3-15 Year Blend Municipal Bond Index, which is national in scope, returned 8.64%. The
portfolio’s increased market sensitivity led the Fund’s underperformance versus the benchmark as the investment environment became less favorable during the final two months of the period.
Market overview
Municipal bonds generated a
robust return over the 12 months ended October 31, 2019. After experiencing poor performance throughout most of 2018, municipals began to rebound in early November 2018 thanks to the combination of slowing global
growth, volatility in higher risk assets, and expectations that the U.S. Federal Reserve (Fed) would adopt a more accommodative stance. In addition, various geopolitical factors — including the U.S.-China trade
dispute, uncertainty surrounding negotiations for the U.K.’s withdrawal from the European Union (Brexit) and the U.S. government shutdown — fueled a “flight to quality” into bonds.
The rally persisted into the 2019,
leading to the largest first-quarter gain for the tax-exempt market since 2014. The first quarter of 2019 was also the sixth-best for municipals in the past 30 years, thanks in part to the backdrop of slow global
growth and the increasingly accommodative policies of the world’s major central banks. Supply-and-demand factors were highly favorable, as well. Municipal bond mutual funds experienced record inflows, fueled by
strong demand resulting from the cap on state and local tax deductions in the Tax Cuts and Jobs Act of 2017. As of the end September 30, 2019, funds had taken in over $70 billion year-to-date. At the same time,
new-issue supply was limited. Trends in the U.S. Treasury market were also supportive, as yields fell in anticipation of Fed rate cuts. Together, these developments propelled municipals higher during the spring and
summer.
In early September, however, the
typical seasonal increase in supply — which was exacerbated by historically low costs for issuers — caused the rally to stall. Municipals suffered their first month of negative returns in 2019 as a result.
The market continued to trade in an uneven fashion through the end of October, as the Fed indicated that additional rate cuts would be dependent on incoming economic data.
For the full year, lower quality
issues outpaced their higher rated counterparts as investors displayed a consistent willingness to move out of the risk spectrum in search of higher yields. Long-term bonds strongly outperformed short-dated issues,
reflecting the trend in the U.S. Treasury market.
New York municipal bonds slightly
underperformed their U.S. peers
New York tax-exempt bonds trailed
the national benchmark. The state’s market is dominated by a handful of higher quality issuers, which weighed on relative performance at a time in which mid- to lower quality securities generally outperformed.
In addition, the state’s market has both a shorter duration and a lower average maturity than the nation as a whole. (Duration is a measure of interest rate sensitivity.) On the plus side, the market was well
supported by the strength in investor demand for tax-exempt debt.
New York’s economy continued
to benefit from the record U.S. expansion and concurrent gains in the financial markets. New York City, in particular, was helped by the market’s robust performance, but financial sector employment remained
below the peak levels achieved prior to the 2008-2009 recession. While overall job growth was steady, the state’s unemployment rate exceeded the national average. New York’s unfavorable upstate demographic
trends and manufacturing-dependent economy also continued to present challenges. In addition, federal tax reform introduced additional volatility and uncertainty into the state’s revenue collections.
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
5
|
Manager Discussion of Fund Performance (continued)
Contributors and detractors
The Fund lagged its benchmark,
with the majority of the shortfall occurring in the final two months of the period. Throughout the period we gradually took steps to add market sensitivity to the portfolio. As a result, the Fund underperformed once
the investment environment became less favorable in September and October 2019. The Fund was also hurt by having a duration (interest-rate sensitivity) slightly below the benchmark for most of the period. An
overweight in bonds maturing in two years or less — including pre-refunded issues — was a further detractor.
On the plus side, an overweight in
bonds with maturities of eight years and above added value, as did positions in the A and BBB rating categories (the lower portion of the investment-grade range). At the sector level, holdings in hospital,
transportation and education issues made positive contributions to relative performance.
Fund positioning
The Fund entered the period with
its average maturity already at the high end of the range. We maintained this positioning throughout the year based on our positive view of the market and the shift in the Fed’s policy stance. We continued to
focus on lower investment-grade debt overall, but we moved slightly up in quality with our new purchases. The holdings we added had an average rating of AA- and an average maturity of 12 years, and our sales had an
average maturity of two years.
We also reduced the
portfolio’s exposure to shorter maturity, pre-refunded securities. We had been reluctant to move out of this area, as it supported the Fund’s distribution yield due to the fact that we purchased many of
these bonds when rates were higher. However, its total return potential appeared limited due to the low degree of possible price appreciation.
The Fund’s universe of
allowable investments expanded to include bonds subject to the Alternative Minimum Tax (AMT). We made this shift after tax reform drastically reduced the number of taxpayers subject to the AMT. This change gives us a
wider opportunity to invest in bonds with higher income. We sought to capitalize on the broader mandate by adding positions in the AMT bonds of the New York Port Authority.
The major stock indexes stood near
all-time highs at the close of the period, but fixed-income investors were displaying some caution with the yield on the 10-year note having risen from its September 2019 low. The Fed appeared to have concluded its
mini-easing cycle and was indicating it was unlikely to enact further cuts until it sees a meaningful uptick in inflation. In addition, market participants were struggling to assess the outlook for global growth and
tensions in Washington, as well as Brexit and the U.S.-China trade conflict. For our part, we remained on the lookout for the chance to use any volatility associated with these issues as a potential buying
opportunity.
Fixed-income securities present
issuer default risk. The Fund invests substantially in municipal securities and will be affected by tax, legislative, regulatory, demographic or political changes, as well as changes impacting a state’s financial, economic or other
conditions. A relatively small number of tax-exempt issuers may necessitate the Fund investing more heavily in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly.
The value of the Fund’s portfolio may be more volatile than a more geographically diversified fund. Prepayment and extension risk exists because the timing of payments on a loan, bond or other investment may accelerate when interest rates fall or decelerate when interest rates rise
which may reduce investment opportunities and potential returns. A rise in interest rates may result in a price decline of fixed-income instruments held by the Fund, negatively impacting its performance and net asset value. Falling rates may result in the
Fund investing in lower yielding debt instruments, lowering the Fund’s income and yield. These risks may be heightened for longer maturity and duration securities. Non-investment-grade (high-yield or junk) securities present greater price volatility and more risk to principal and income than higher rated securities. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. Federal and state tax rules apply to capital gain distributions and any gains or losses on sales. Income may be subject to state or local taxes. Liquidity risk is associated with the difficulty of selling underlying investments at a desirable time or price. See the Fund’s prospectus for more information on these and other
risks.
The views expressed in this report
reflect the current views of the respective parties. These views are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict, so actual outcomes and
results may differ significantly from the views expressed. These views are subject to change at any time based upon economic, market or other conditions and the respective parties disclaim any responsibility to update
such views. These views may not be relied on as investment advice and, because investment decisions for a Columbia fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf
of any particular Columbia fund. References to specific securities should not be construed as a recommendation or investment advice.
6
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Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
Understanding Your Fund’s
Expenses
(Unaudited)
As an investor, you incur two types
of costs. There are shareholder transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing fund costs, which generally include management fees,
distribution and/or service fees, and other fund expenses. The following information is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to help you compare these costs with
the ongoing costs of investing in other mutual funds.
Analyzing your Fund’s
expenses
To illustrate these ongoing
costs, we have provided examples and calculated the expenses paid by investors in each share class of the Fund during the period. The actual and hypothetical information in the table is based on an initial investment
of $1,000 at the beginning of the period indicated and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the
“Actual” column is calculated using the Fund’s actual operating expenses and total return for the period. You may use the Actual information, together with the amount invested, to estimate the
expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the results by the expenses paid during the period under
the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the
Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or
the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are
required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are
meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in
comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
May 1, 2019 — October 31, 2019
|
|
Account value at the
beginning of the
period ($)
|
Account value at the
end of the
period ($)
|
Expenses paid during
the period ($)
|
Fund’s annualized
expense ratio (%)
|
|
Actual
|
Hypothetical
|
Actual
|
Hypothetical
|
Actual
|
Hypothetical
|
Actual
|
Class A
|
1,000.00
|
1,000.00
|
1,028.70
|
1,021.42
|
3.84
|
3.82
|
0.75
|
Advisor Class
|
1,000.00
|
1,000.00
|
1,030.90
|
1,022.68
|
2.56
|
2.55
|
0.50
|
Class C
|
1,000.00
|
1,000.00
|
1,026.40
|
1,019.16
|
6.13
|
6.11
|
1.20
|
Institutional Class
|
1,000.00
|
1,000.00
|
1,030.00
|
1,022.68
|
2.56
|
2.55
|
0.50
|
Institutional 2 Class
|
1,000.00
|
1,000.00
|
1,030.30
|
1,023.04
|
2.20
|
2.19
|
0.43
|
Institutional 3 Class
|
1,000.00
|
1,000.00
|
1,031.40
|
1,023.24
|
2.00
|
1.99
|
0.39
|
Class V
|
1,000.00
|
1,000.00
|
1,029.20
|
1,021.93
|
3.32
|
3.31
|
0.65
|
Expenses paid during the period
are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period and then multiplied by the number of days in the Fund’s most recent fiscal
half year and divided by 365.
Expenses do not include fees and
expenses incurred indirectly by the Fund from its investment in underlying funds, including affiliated and non-affiliated pooled investment vehicles, such as mutual funds and exchange-traded funds.
Had Columbia Management Investment
Advisers, LLC and/or certain of its affiliates not waived/reimbursed certain fees and expenses, account value at the end of the period would have been reduced.
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
7
|
Portfolio of Investments
October 31, 2019
(Percentages represent value of
investments compared to net assets)
Investments in securities
Floating Rate Notes 3.7%
|
Issue Description
|
Effective
Yield
|
|
Principal
Amount ($)
|
Value ($)
|
Variable Rate Demand Notes 3.7%
|
City of New York(a),(b)
|
Unlimited General Obligation Bonds
|
Fiscal 2015
|
Subordinated Series 2015 (JPMorgan Chase Bank)
|
06/01/2044
|
1.350%
|
|
3,030,000
|
3,030,000
|
Subordinated Series 2014I-2 (JPMorgan Chase Bank)
|
03/01/2040
|
1.350%
|
|
3,300,000
|
3,300,000
|
New York City Transitional Finance Authority(a),(b)
|
Revenue Bonds
|
Future Tax Secured
|
Subordinated Series 2016 (JPMorgan Chase Bank)
|
02/01/2045
|
1.350%
|
|
2,250,000
|
2,250,000
|
Total
|
8,580,000
|
Total Floating Rate Notes
(Cost $8,580,000)
|
8,580,000
|
|
Municipal Bonds 96.5%
|
Issue Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value ($)
|
Charter Schools 0.8%
|
Build NYC Resource Corp.
|
Revenue Bonds
|
International Leadership Charter School
|
Series 2013
|
07/01/2023
|
5.000%
|
|
1,460,000
|
1,482,805
|
Build NYC Resource Corp.(c)
|
Revenue Bonds
|
International Leadership Charter School
|
Series 2016
|
07/01/2046
|
6.250%
|
|
420,000
|
426,111
|
Total
|
1,908,916
|
Disposal 0.4%
|
Oneida-Herkimer Solid Waste Management Authority
|
Revenue Bonds
|
Series 2011
|
04/01/2020
|
5.000%
|
|
870,000
|
883,807
|
Health Services 2.2%
|
New York State Dormitory Authority
|
Refunding Revenue Bonds
|
Icahn School of Medicine at Mount Sinai
|
Series 2015
|
07/01/2030
|
5.000%
|
|
3,400,000
|
3,991,532
|
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Revenue Bonds
|
Mount Sinai School of Medicine
|
Series 2010A
|
07/01/2021
|
5.000%
|
|
1,000,000
|
1,023,690
|
Total
|
5,015,222
|
Higher Education 9.1%
|
Albany Capital Resource Corp.
|
Refunding Revenue Bonds
|
Albany College of Pharmacy & Health Services
|
Series 2014
|
12/01/2031
|
5.000%
|
|
500,000
|
569,885
|
Build NYC Resource Corp.
|
Refunding Revenue Bonds
|
City University of New York-Queens
|
Series 2014A
|
06/01/2029
|
5.000%
|
|
225,000
|
260,055
|
06/01/2030
|
5.000%
|
|
300,000
|
345,684
|
Manhattan College Project
|
Series 2017
|
08/01/2033
|
5.000%
|
|
400,000
|
481,632
|
County of Saratoga
|
Revenue Bonds
|
Skidmore College Project
|
Series 2018
|
07/01/2033
|
5.000%
|
|
165,000
|
206,641
|
07/01/2034
|
5.000%
|
|
200,000
|
249,710
|
07/01/2035
|
5.000%
|
|
200,000
|
248,676
|
Dutchess County Local Development Corp.
|
Refunding Revenue Bonds
|
Culinary Institute of America (The)
|
Series 2018
|
07/01/2032
|
5.000%
|
|
220,000
|
267,938
|
Vassar College Project
|
Series 2017
|
07/01/2034
|
5.000%
|
|
500,000
|
608,535
|
Revenue Bonds
|
Marist College Project
|
Series 2015A
|
07/01/2029
|
5.000%
|
|
1,000,000
|
1,184,260
|
Series 2018
|
07/01/2031
|
5.000%
|
|
170,000
|
213,797
|
07/01/2032
|
5.000%
|
|
210,000
|
263,086
|
07/01/2033
|
5.000%
|
|
205,000
|
255,992
|
Geneva Development Corp.
|
Refunding Revenue Bonds
|
Hobart & William Smith College
|
Series 2012
|
09/01/2024
|
5.000%
|
|
600,000
|
658,770
|
09/01/2025
|
5.000%
|
|
300,000
|
329,295
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
8
|
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Hempstead Town Local Development Corp.
|
Revenue Bonds
|
Hofstra University Project
|
Series 2013
|
07/01/2028
|
5.000%
|
|
1,170,000
|
1,309,569
|
New York State Dormitory Authority
|
Refunding Revenue Bonds
|
Barnard College
|
Series 2015A
|
07/01/2030
|
5.000%
|
|
700,000
|
828,828
|
New School
|
Series 2015A
|
07/01/2029
|
5.000%
|
|
450,000
|
529,448
|
Pratt Institute
|
Series 2015A
|
07/01/2034
|
5.000%
|
|
2,000,000
|
2,275,480
|
St. John’s University
|
Series 2015A
|
07/01/2030
|
5.000%
|
|
2,340,000
|
2,758,181
|
Teacher’s College
|
Series 2017
|
07/01/2029
|
5.000%
|
|
175,000
|
216,125
|
07/01/2030
|
5.000%
|
|
150,000
|
184,724
|
Revenue Bonds
|
Culinary Institute of America
|
Series 2012
|
07/01/2028
|
5.000%
|
|
500,000
|
544,100
|
New York University
|
Series 1998A (NPFGC)
|
07/01/2020
|
5.750%
|
|
2,000,000
|
2,062,160
|
Series 2019A
|
07/01/2037
|
5.000%
|
|
2,000,000
|
2,555,160
|
New York State Dormitory Authority(d)
|
Refunding Revenue Bonds
|
Rochester Institute
|
Series 2019A
|
07/01/2036
|
5.000%
|
|
750,000
|
918,420
|
Tompkins County Development Corp.
|
Refunding Revenue Bonds
|
Ithaca College Project
|
07/01/2034
|
5.000%
|
|
575,000
|
711,700
|
Total
|
21,037,851
|
Hospital 12.9%
|
Buffalo & Erie County Industrial Land Development Corp.
|
Revenue Bonds
|
Catholic Health System
|
Series 2015
|
07/01/2027
|
5.000%
|
|
400,000
|
472,944
|
07/01/2028
|
5.000%
|
|
360,000
|
425,372
|
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Build NYC Resource Corp.
|
Refunding Revenue Bonds
|
New York Methodist Hospital Project
|
Series 2014
|
07/01/2028
|
5.000%
|
|
150,000
|
171,012
|
07/01/2029
|
5.000%
|
|
175,000
|
198,968
|
County of Saratoga
|
Revenue Bonds
|
Saratoga Hospital Project
|
Series 2013A
|
12/01/2024
|
5.000%
|
|
1,085,000
|
1,234,991
|
12/01/2025
|
5.000%
|
|
1,115,000
|
1,267,242
|
12/01/2027
|
5.000%
|
|
1,225,000
|
1,386,553
|
Dutchess County Local Development Corp.
|
Refunding Revenue Bonds
|
Nuvance Health Issue
|
Series 2019B
|
07/01/2033
|
5.000%
|
|
1,250,000
|
1,561,150
|
Monroe County Industrial Development Corp.
|
Refunding Revenue Bonds
|
Highland Hospital Rochester Project
|
Series 2015
|
07/01/2025
|
5.000%
|
|
450,000
|
536,328
|
07/01/2026
|
5.000%
|
|
350,000
|
417,417
|
University of Rochester Project
|
Series 2017
|
07/01/2035
|
4.000%
|
|
1,285,000
|
1,451,677
|
Revenue Bonds
|
Rochester General Hospital (The)
|
Series 2017
|
12/01/2035
|
5.000%
|
|
1,000,000
|
1,182,550
|
Nassau County Local Economic Assistance Corp.
|
Revenue Bonds
|
Catholic Health Services of Long Island
|
Series 2014
|
07/01/2032
|
5.000%
|
|
1,250,000
|
1,395,938
|
07/01/2033
|
5.000%
|
|
675,000
|
752,713
|
New York State Dormitory Authority
|
Refunding Revenue Bonds
|
Catholic Health System Obligation Group
|
Series 2019
|
07/01/2035
|
5.000%
|
|
300,000
|
372,033
|
07/01/2036
|
5.000%
|
|
1,000,000
|
1,236,480
|
Memorial Sloan-Kettering Cancer Center
|
Series 2017
|
07/01/2034
|
4.000%
|
|
1,000,000
|
1,150,830
|
North Shore - Long Island Jewish Obligation Group
|
Series 2015A
|
05/01/2031
|
5.000%
|
|
3,000,000
|
3,539,400
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
9
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
NYU Hospitals Center
|
Series 2014
|
07/01/2030
|
5.000%
|
|
1,000,000
|
1,153,190
|
07/01/2031
|
5.000%
|
|
1,000,000
|
1,152,680
|
Revenue Bonds
|
Mount Sinai Hospital
|
Series 2010A
|
07/01/2026
|
5.000%
|
|
1,725,000
|
1,767,590
|
Series 2011A
|
07/01/2031
|
5.000%
|
|
2,000,000
|
2,120,280
|
New York State Dormitory Authority(c)
|
Refunding Revenue Bonds
|
Orange Regional Medical Center
|
Series 2017
|
12/01/2031
|
5.000%
|
|
1,000,000
|
1,184,940
|
New York State Dormitory Authority(d)
|
Revenue Bonds
|
Memorial Sloan Kettering Cancer Center
|
Series 2019
|
07/01/2035
|
5.000%
|
|
2,000,000
|
2,552,100
|
07/01/2036
|
5.000%
|
|
1,000,000
|
1,270,280
|
Total
|
29,954,658
|
Local General Obligation 14.5%
|
City of New York
|
Unlimited General Obligation Bonds
|
Fiscal 2020
|
Series 2019B-1
|
10/01/2038
|
5.000%
|
|
1,000,000
|
1,258,580
|
Subordinated Series 2019H-A
|
01/01/2035
|
5.000%
|
|
1,500,000
|
1,882,845
|
Unlimited General Obligation Refunding Bonds
|
Series 2014J
|
08/01/2030
|
5.000%
|
|
1,500,000
|
1,737,000
|
Series 2019E
|
08/01/2025
|
5.000%
|
|
1,000,000
|
1,204,190
|
Unlimited General Obligation Refunding Notes
|
Series 2016C
|
08/01/2032
|
5.000%
|
|
2,000,000
|
2,382,280
|
City of Syracuse
|
Limited General Obligation Refunding & Public Improvement Bonds
|
Series 2014
|
08/15/2023
|
5.000%
|
|
405,000
|
461,307
|
Limited General Obligation Refunding Bonds
|
Series 2015A
|
03/01/2024
|
5.000%
|
|
1,000,000
|
1,157,030
|
City of Yonkers
|
Limited General Obligation Bonds
|
Series 2016A (AGM)
|
11/15/2028
|
5.000%
|
|
1,780,000
|
2,189,258
|
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Series 2017A (BAM)
|
09/01/2028
|
5.000%
|
|
2,090,000
|
2,623,640
|
County of Allegany
|
Limited General Obligation Refunding Bonds
|
Public Improvement
|
Series 2014 (BAM)
|
09/15/2028
|
5.000%
|
|
1,375,000
|
1,595,852
|
County of Erie
|
Limited General Obligation Bonds
|
Public Improvement
|
Series 2012A
|
04/01/2025
|
5.000%
|
|
500,000
|
543,255
|
County of Monroe(e)
|
Limited General Obligation Public Improvement Bonds
|
Series 2019B (BAM) AMT
|
06/01/2027
|
5.000%
|
|
1,350,000
|
1,666,494
|
County of Nassau
|
Limited General Obligation Bonds
|
Series 2017B
|
04/01/2033
|
5.000%
|
|
2,000,000
|
2,413,220
|
County of Rockland
|
Limited General Obligation Bonds
|
Series 2014A (AGM)
|
03/01/2024
|
5.000%
|
|
1,450,000
|
1,678,360
|
Monroe County Industrial Development Agency
|
Revenue Bonds
|
Rochester Schools Modernization Program
|
Series 2018
|
05/01/2034
|
5.000%
|
|
750,000
|
944,895
|
New York State Dormitory Authority
|
Refunding Revenue Bonds
|
School Districts Bond Financing
|
Series 2013E (AGM)
|
10/01/2031
|
5.000%
|
|
500,000
|
575,190
|
School Districts Financing Program
|
Series 2015B (AGM)
|
10/01/2027
|
5.000%
|
|
2,010,000
|
2,430,492
|
Revenue Bonds
|
School Districts Building Financing Program
|
Series 2018
|
10/01/2032
|
5.000%
|
|
2,000,000
|
2,428,340
|
Ramapo Local Development Corp.
|
Refunding Revenue Bonds
|
Guaranteed
|
Series 2013
|
03/15/2028
|
5.000%
|
|
2,180,000
|
2,324,033
|
Town of Oyster Bay
|
Limited General Obligation Refunding & Public Improvement Bonds
|
Series 2014B
|
08/15/2023
|
5.000%
|
|
1,850,000
|
2,090,352
|
Total
|
33,586,613
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
10
|
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value ($)
|
Multi-Family 2.2%
|
Amherst Development Corp.
|
Refunding Revenue Bonds
|
University of Buffalo Student Housing
|
Series 2017 (AGM)
|
10/01/2028
|
5.000%
|
|
730,000
|
910,609
|
10/01/2029
|
5.000%
|
|
1,290,000
|
1,602,619
|
New York State Dormitory Authority
|
Revenue Bonds
|
Residential Institution for Children
|
Series 2008A-1
|
06/01/2033
|
5.000%
|
|
1,700,000
|
1,704,777
|
Onondaga County Trust for Cultural Resources
|
Refunding Revenue Bonds
|
Abby Lane Housing Corp. Project
|
Series 2017
|
05/01/2030
|
5.000%
|
|
420,000
|
507,465
|
05/01/2031
|
5.000%
|
|
400,000
|
481,564
|
Total
|
5,207,034
|
Municipal Power 6.4%
|
Long Island Power Authority
|
Refunding Revenue Bonds
|
Series 2014A
|
09/01/2034
|
5.000%
|
|
2,000,000
|
2,308,300
|
Series 2016B
|
09/01/2025
|
5.000%
|
|
2,500,000
|
3,004,800
|
09/01/2027
|
5.000%
|
|
1,000,000
|
1,226,670
|
09/01/2030
|
5.000%
|
|
2,750,000
|
3,338,638
|
Revenue Bonds
|
Electric System General Purpose
|
Series 2015B
|
09/01/2032
|
5.000%
|
|
765,000
|
902,700
|
General
|
Series 2017
|
09/01/2035
|
5.000%
|
|
1,200,000
|
1,459,536
|
Series 2011A
|
05/01/2021
|
5.000%
|
|
1,000,000
|
1,057,390
|
Series 2012B
|
09/01/2026
|
5.000%
|
|
1,510,000
|
1,665,590
|
Total
|
14,963,624
|
Other Bond Issue 1.8%
|
Build NYC Resource Corp.
|
Revenue Bonds
|
Children’s Aid Society Project (The)
|
Series 2019
|
07/01/2036
|
4.000%
|
|
100,000
|
114,549
|
Series 2015
|
07/01/2029
|
5.000%
|
|
545,000
|
646,070
|
07/01/2031
|
5.000%
|
|
715,000
|
846,153
|
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
New York Liberty Development Corp.
|
Refunding Revenue Bonds
|
4 World Trade Center Project
|
Series 2011
|
11/15/2031
|
5.000%
|
|
2,350,000
|
2,522,631
|
Total
|
4,129,403
|
Other Revenue 0.2%
|
New York City Trust for Cultural Resources
|
Refunding Revenue Bonds
|
Carnegie Hall
|
Series 2019
|
12/01/2037
|
5.000%
|
|
275,000
|
351,989
|
Pool / Bond Bank 1.8%
|
New York State Dormitory Authority
|
Revenue Bonds
|
School Districts Financing Program
|
Series 2012B
|
10/01/2026
|
5.000%
|
|
3,000,000
|
3,321,180
|
Unrefunded Revenue Bonds
|
School Districts Bond Financing Program
|
Series 2009 (AGM)
|
10/01/2022
|
5.000%
|
|
180,000
|
180,498
|
New York State Environmental Facilities Corp.
|
Refunding Revenue Bonds
|
Subordinated Series 2019B
|
06/15/2029
|
5.000%
|
|
500,000
|
656,680
|
Total
|
4,158,358
|
Ports 5.6%
|
Port Authority of New York & New Jersey
|
Refunding Revenue Bonds
|
Consol-211th
|
Series 2018
|
09/01/2038
|
4.000%
|
|
1,400,000
|
1,600,690
|
Consolidated 184th
|
Series 2014
|
09/01/2030
|
5.000%
|
|
2,000,000
|
2,327,820
|
Series 2018-209
|
07/15/2034
|
5.000%
|
|
2,500,000
|
3,128,175
|
Series 2018-211
|
09/01/2036
|
5.000%
|
|
1,000,000
|
1,246,480
|
Port Authority of New York & New Jersey(e)
|
Refunding Revenue Bonds
|
Series 2015-188 AMT
|
05/01/2023
|
5.000%
|
|
1,055,000
|
1,182,434
|
Series 2018-207 AMT
|
09/15/2024
|
5.000%
|
|
1,985,000
|
2,307,324
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
11
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Revenue Bonds
|
Consolidated
|
Series 2019 AMT
|
09/01/2033
|
5.000%
|
|
1,000,000
|
1,262,410
|
Total
|
13,055,333
|
Prep School 1.3%
|
Build NYC Resource Corp.
|
Refunding Revenue Bonds
|
Horace Mann School Project
|
Series 2014
|
07/01/2026
|
5.000%
|
|
475,000
|
556,239
|
07/01/2027
|
5.000%
|
|
600,000
|
699,510
|
Series 2015
|
06/01/2026
|
5.000%
|
|
225,000
|
264,247
|
06/01/2028
|
5.000%
|
|
250,000
|
292,353
|
Rensselaer County Industrial Development Agency
|
Refunding Revenue Bonds
|
Emma Willard School Project
|
Series 2015A
|
01/01/2034
|
5.000%
|
|
450,000
|
518,719
|
01/01/2035
|
5.000%
|
|
590,000
|
678,706
|
Total
|
3,009,774
|
Recreation 0.4%
|
Build NYC Resource Corp.
|
Refunding Revenue Bonds
|
YMCA of Greater New York Project
|
Series 2015
|
08/01/2029
|
5.000%
|
|
430,000
|
499,927
|
Revenue Bonds
|
YMCA of Greater New York Project
|
Series 2012
|
08/01/2032
|
5.000%
|
|
500,000
|
537,405
|
Total
|
1,037,332
|
Refunded / Escrowed 9.3%
|
Dutchess County Local Development Corp.
|
Prerefunded 07/01/24 Revenue Bonds
|
Series 2014A
|
07/01/2034
|
5.000%
|
|
300,000
|
350,010
|
Elizabeth Forward School District(f)
|
Unlimited General Obligation Bonds
|
Capital Appreciation
|
Series 1994B Escrowed to Maturity (NPFGC)
|
09/01/2020
|
0.000%
|
|
2,210,000
|
2,185,425
|
Metropolitan Transportation Authority
|
Prerefunded 11/15/20 Revenue Bonds
|
Transportation
|
Series 2010D
|
11/15/2028
|
5.250%
|
|
3,000,000
|
3,131,010
|
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Prerefunded 11/15/24 Revenue Bonds
|
Series 2014C
|
11/15/2029
|
5.000%
|
|
3,000,000
|
3,579,150
|
New York State Dormitory Authority
|
Prerefunded 01/01/22 Revenue Bonds
|
Memorial Sloan-Kettering Cancer Center
|
Series 2012
|
07/01/2027
|
5.000%
|
|
500,000
|
541,810
|
Prerefunded 07/01/20 Revenue Bonds
|
New York University Hospital Center
|
Series 2011A
|
07/01/2023
|
5.125%
|
|
1,000,000
|
1,026,250
|
Rochester Institute of Technology
|
Series 2010
|
07/01/2021
|
5.000%
|
|
1,000,000
|
1,025,770
|
Prerefunded 07/01/22 Revenue Bonds
|
St. John’s University
|
Series 2012A
|
07/01/2027
|
5.000%
|
|
470,000
|
518,278
|
New York State Dormitory Authority(f)
|
Revenue Bonds
|
Capital Appreciation-Memorial Sloan-Kettering Cancer Center
|
Series 2003-1 Escrowed to Maturity (NPFGC)
|
07/01/2025
|
0.000%
|
|
3,750,000
|
3,463,425
|
Puerto Rico Highway & Transportation Authority(g)
|
Refunding Revenue Bonds
|
Series 2005BB Escrowed to Maturity (AGM)
|
07/01/2022
|
5.250%
|
|
355,000
|
391,810
|
Triborough Bridge & Tunnel Authority
|
Prerefunded 01/01/22 Revenue Bonds
|
General Purpose
|
Series 1999B
|
01/01/2030
|
5.500%
|
|
2,000,000
|
2,183,560
|
Series 2011A
|
01/01/2025
|
5.000%
|
|
3,000,000
|
3,257,580
|
Total
|
21,654,078
|
Retirement Communities 1.9%
|
Brookhaven Local Development Corp.
|
Refunding Revenue Bonds
|
Jeffersons Ferry Project
|
Series 2016
|
11/01/2036
|
5.250%
|
|
750,000
|
874,620
|
Buffalo & Erie County Industrial Land Development Corp.
|
Refunding Revenue Bonds
|
Orchard Park
|
Series 2015
|
11/15/2029
|
5.000%
|
|
550,000
|
627,847
|
11/15/2030
|
5.000%
|
|
650,000
|
738,881
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
12
|
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Tompkins County Development Corp.
|
Refunding Revenue Bonds
|
Kendal at Ithaca, Inc. Project
|
Series 2014
|
07/01/2029
|
5.000%
|
|
1,000,000
|
1,107,290
|
07/01/2034
|
5.000%
|
|
1,000,000
|
1,095,140
|
Total
|
4,443,778
|
Single Family 0.5%
|
State of New York Mortgage Agency
|
Refunding Revenue Bonds
|
Series 2018-211
|
10/01/2038
|
3.625%
|
|
1,000,000
|
1,058,540
|
Special Non Property Tax 10.3%
|
New York City Transitional Finance Authority
|
Refunding Revenue Bonds
|
Building Aid
|
Series 2018S-2A
|
07/15/2036
|
5.000%
|
|
2,000,000
|
2,474,600
|
Revenue Bonds
|
Building Aid
|
Series 2018S-3
|
07/15/2034
|
5.000%
|
|
1,000,000
|
1,246,730
|
Future Tax Secured
|
Subordinated Series 2016E-1
|
02/01/2032
|
5.000%
|
|
3,000,000
|
3,585,690
|
Subordinated Series 2019
|
11/01/2034
|
5.000%
|
|
3,500,000
|
4,432,225
|
Unrefunded Revenue Bonds
|
Future Tax Secured
|
Series 2009
|
05/01/2027
|
5.000%
|
|
3,525,000
|
3,545,128
|
New York Convention Center Development Corp.
|
Refunding Revenue Bonds
|
Hotel Unit Fee Secured
|
Series 2015
|
11/15/2027
|
5.000%
|
|
4,120,000
|
4,983,964
|
New York State Dormitory Authority
|
Refunding Revenue Bonds
|
Education
|
Series 2005B (AMBAC)
|
03/15/2026
|
5.500%
|
|
1,000,000
|
1,255,120
|
Series 2019A2
|
03/15/2035
|
5.000%
|
|
2,000,000
|
2,523,260
|
Total
|
24,046,717
|
Special Property Tax 0.5%
|
Hudson Yards Infrastructure Corp.
|
Refunding Revenue Bonds
|
Series 2017A
|
02/15/2033
|
5.000%
|
|
1,000,000
|
1,221,760
|
Municipal Bonds (continued)
|
Issue Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value ($)
|
State Appropriated 1.1%
|
Erie County Industrial Development Agency (The)
|
Revenue Bonds
|
School District of Buffalo Project
|
Series 2011A
|
05/01/2030
|
5.250%
|
|
1,440,000
|
1,524,355
|
New York State Dormitory Authority
|
Revenue Bonds
|
State University Educational Facilities
|
3rd General Series 2005A (NPFGC)
|
05/15/2021
|
5.500%
|
|
1,000,000
|
1,066,120
|
Total
|
2,590,475
|
Tobacco 2.3%
|
Chautauqua Tobacco Asset Securitization Corp.
|
Refunding Revenue Bonds
|
Series 2014
|
06/01/2029
|
5.000%
|
|
2,965,000
|
2,969,714
|
TSASC, Inc.
|
Refunding Revenue Bonds
|
Series 2017A
|
06/01/2031
|
5.000%
|
|
2,000,000
|
2,380,240
|
Total
|
5,349,954
|
Transportation 5.7%
|
Metropolitan Transportation Authority
|
Refunding Revenue Bonds
|
Climate Bond Certified - Green
|
Series 2018
|
11/15/2026
|
5.000%
|
|
2,590,000
|
3,181,375
|
Revenue Bonds
|
BAN Series 2019 D-1
|
09/01/2022
|
5.000%
|
|
2,000,000
|
2,193,560
|
BAN Series 2019B-1
|
05/15/2022
|
5.000%
|
|
2,100,000
|
2,281,251
|
Series 2005B (AMBAC)
|
11/15/2024
|
5.250%
|
|
750,000
|
894,300
|
Series 2016C-1
|
11/15/2036
|
5.000%
|
|
3,000,000
|
3,556,260
|
Metropolitan Transportation Authority(f)
|
Refunding Revenue Bonds
|
Green Bonds
|
Series 2017C-2
|
11/15/2029
|
0.000%
|
|
1,500,000
|
1,194,945
|
Total
|
13,301,691
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
13
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value ($)
|
Turnpike / Bridge / Toll Road 4.2%
|
New York State Thruway Authority
|
Refunding Revenue Bonds
|
Series 2014K
|
01/01/2029
|
5.000%
|
|
1,850,000
|
2,172,603
|
01/01/2032
|
5.000%
|
|
1,000,000
|
1,164,610
|
Revenue Bonds
|
Junior Lien
|
Series 2016A
|
01/01/2033
|
5.000%
|
|
1,000,000
|
1,183,200
|
Series 2019B
|
01/01/2036
|
5.000%
|
|
2,000,000
|
2,531,720
|
Triborough Bridge & Tunnel Authority
|
Refunding Revenue Bonds
|
Series 2018-B
|
11/15/2031
|
5.000%
|
|
2,000,000
|
2,749,060
|
Total
|
9,801,193
|
Water & Sewer 1.1%
|
Buffalo Municipal Water Finance Authority
|
Refunding Revenue Bonds
|
Series 2015A
|
07/01/2028
|
5.000%
|
|
700,000
|
832,538
|
New York City Water & Sewer System
|
Refunding Revenue Bonds
|
Series 2019AA
|
06/15/2032
|
5.000%
|
|
1,000,000
|
1,294,930
|
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Western Nassau County Water Authority
|
Revenue Bonds
|
Series 2015A
|
04/01/2027
|
5.000%
|
|
145,000
|
172,096
|
04/01/2028
|
5.000%
|
|
175,000
|
207,256
|
Total
|
2,506,820
|
Total Municipal Bonds
(Cost $211,899,390)
|
224,274,920
|
Money Market Funds 0.9%
|
|
Shares
|
Value ($)
|
Dreyfus AMT-Free Tax Exempt Cash Management Fund, Institutional Shares, 1.068%(h)
|
248,477
|
248,502
|
JPMorgan Institutional Tax Free Money Market Fund, Institutional Shares, 1.045%(h)
|
1,880,222
|
1,880,222
|
Total Money Market Funds
(Cost $2,128,699)
|
2,128,724
|
Total Investments in Securities
(Cost: $222,608,089)
|
234,983,644
|
Other Assets & Liabilities, Net
|
|
(2,513,906)
|
Net Assets
|
232,469,738
|
Notes to Portfolio of
Investments
(a)
|
The Fund is entitled to receive principal and interest from the guarantor after a day or a week’s notice or upon maturity. The maturity date disclosed represents the final maturity.
|
(b)
|
Represents a variable rate security where the coupon rate adjusts on specified dates (generally daily or weekly) using the prevailing money market rate. The interest rate shown was
the current rate as of October 31, 2019.
|
(c)
|
Represents privately placed and other securities and instruments exempt from Securities and Exchange Commission registration (collectively, private placements), such as Section
4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. The Fund may invest in private placements determined to be liquid as well as those determined to be illiquid.
Private placements may be determined to be liquid under guidelines established by the Fund’s Board of Trustees. At October 31, 2019, the total value of these securities amounted to $1,611,051, which represents
0.69% of total net assets.
|
(d)
|
Represents a security purchased on a when-issued basis.
|
(e)
|
Income from this security may be subject to alternative minimum tax.
|
(f)
|
Zero coupon bond.
|
(g)
|
Municipal obligations include debt obligations issued by or on behalf of territories, possessions, or sovereign nations within the territorial boundaries of the United States. At
October 31, 2019, the total value of these securities amounted to $391,810, which represents 0.17% of total net assets.
|
(h)
|
The rate shown is the seven-day current annualized yield at October 31, 2019.
|
Abbreviation Legend
AGM
|
Assured Guaranty Municipal Corporation
|
AMBAC
|
Ambac Assurance Corporation
|
AMT
|
Alternative Minimum Tax
|
BAM
|
Build America Mutual Assurance Co.
|
BAN
|
Bond Anticipation Note
|
The accompanying Notes to Financial Statements are
an integral part of this statement.
14
|
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
Portfolio of Investments (continued)
October 31, 2019
Abbreviation Legend (continued)
NPFGC
|
National Public Finance Guarantee Corporation
|
Fair value measurements
The Fund categorizes its fair
value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available.
Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the
Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is
deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example,
certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in
the three broad levels listed below:
■
|
Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments.
|
■
|
Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.).
|
■
|
Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments).
|
Inputs that are used in determining
fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary
between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered
by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include
periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels
within the hierarchy.
Investments falling into the Level 3
category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency
and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant
unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and
estimated cash flows, and comparable company data.
Under the direction of the
Fund’s Board of Trustees (the Board), the Investment Manager’s Valuation Committee (the Committee) is responsible for overseeing the valuation procedures approved by the Board. The Committee consists of
voting and non-voting members from various groups within the Investment Manager’s organization, including operations and accounting, trading and investments, compliance, risk management and legal.
The Committee meets at least monthly
to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of
Board-approved valuation control policies and procedures (the Policies). The Policies address, among other things, instances when market quotations are or are not readily available, including recommendations of third
party pricing vendors and a determination of appropriate pricing methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale
pricing, including those that are illiquid, restricted, or in default; and the effectiveness of third party pricing vendors, including periodic reviews of vendors. The Committee meets more frequently, as needed, to
discuss additional valuation matters, which may include the need to review back-testing results, review time-sensitive information or approve related valuation actions. The Committee reports to the Board, with members
of the Committee meeting with the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.
The following table is a summary of
the inputs used to value the Fund’s investments at October 31, 2019:
|
Level 1 ($)
|
Level 2 ($)
|
Level 3 ($)
|
Total ($)
|
Investments in Securities
|
|
|
|
|
Floating Rate Notes
|
—
|
8,580,000
|
—
|
8,580,000
|
Municipal Bonds
|
—
|
224,274,920
|
—
|
224,274,920
|
Money Market Funds
|
2,128,724
|
—
|
—
|
2,128,724
|
Total Investments in Securities
|
2,128,724
|
232,854,920
|
—
|
234,983,644
|
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The Fund’s assets assigned to
the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical
assets.
The accompanying Notes to Financial Statements are
an integral part of this statement.
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
15
|
Statement of Assets and Liabilities
October 31, 2019
Assets
|
|
Investments in securities, at value
|
|
Unaffiliated issuers (cost $222,608,089)
|
$234,983,644
|
Receivable for:
|
|
Investments sold
|
5,125
|
Capital shares sold
|
132,856
|
Interest
|
2,834,411
|
Expense reimbursement due from Investment Manager
|
988
|
Prepaid expenses
|
1,160
|
Trustees’ deferred compensation plan
|
69,304
|
Total assets
|
238,027,488
|
Liabilities
|
|
Due to custodian
|
83
|
Payable for:
|
|
Investments purchased on a delayed delivery basis
|
4,763,128
|
Capital shares purchased
|
201,991
|
Distributions to shareholders
|
475,578
|
Management services fees
|
2,985
|
Distribution and/or service fees
|
346
|
Transfer agent fees
|
25,745
|
Compensation of board members
|
159
|
Compensation of chief compliance officer
|
6
|
Other expenses
|
18,425
|
Trustees’ deferred compensation plan
|
69,304
|
Total liabilities
|
5,557,750
|
Net assets applicable to outstanding capital stock
|
$232,469,738
|
Represented by
|
|
Paid in capital
|
219,861,756
|
Total distributable earnings (loss)
|
12,607,982
|
Total - representing net assets applicable to outstanding capital stock
|
$232,469,738
|
The accompanying Notes to Financial Statements are
an integral part of this statement.
16
|
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
Statement of Assets and Liabilities (continued)
October 31, 2019
Class A
|
|
Net assets
|
$19,269,521
|
Shares outstanding
|
1,596,103
|
Net asset value per share
|
$12.07
|
Maximum sales charge
|
3.00%
|
Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares)
|
$12.44
|
Advisor Class
|
|
Net assets
|
$1,234,181
|
Shares outstanding
|
102,364
|
Net asset value per share
|
$12.06
|
Class C
|
|
Net assets
|
$9,996,271
|
Shares outstanding
|
827,902
|
Net asset value per share
|
$12.07
|
Institutional Class
|
|
Net assets
|
$191,679,952
|
Shares outstanding
|
15,878,338
|
Net asset value per share
|
$12.07
|
Institutional 2 Class
|
|
Net assets
|
$3,915,591
|
Shares outstanding
|
323,815
|
Net asset value per share
|
$12.09
|
Institutional 3 Class
|
|
Net assets
|
$677,977
|
Shares outstanding
|
55,957
|
Net asset value per share
|
$12.12
|
Class V
|
|
Net assets
|
$5,696,245
|
Shares outstanding
|
471,874
|
Net asset value per share
|
$12.07
|
Maximum sales charge
|
4.75%
|
Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge
for Class V shares)
|
$12.67
|
The accompanying Notes to Financial Statements are
an integral part of this statement.
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
17
|
Statement of Operations
Year Ended October 31, 2019
Net investment income
|
|
Income:
|
|
Dividends — unaffiliated issuers
|
$18,102
|
Interest
|
6,945,999
|
Total income
|
6,964,101
|
Expenses:
|
|
Management services fees
|
1,016,584
|
Distribution and/or service fees
|
|
Class A
|
42,547
|
Class C
|
112,625
|
Class V
|
8,860
|
Transfer agent fees
|
|
Class A
|
22,134
|
Advisor Class
|
1,064
|
Class C
|
14,696
|
Institutional Class
|
230,872
|
Institutional 2 Class
|
2,015
|
Institutional 3 Class
|
103
|
Class V
|
7,697
|
Compensation of board members
|
16,617
|
Custodian fees
|
2,719
|
Printing and postage fees
|
15,804
|
Registration fees
|
11,793
|
Audit fees
|
29,500
|
Legal fees
|
4,584
|
Compensation of chief compliance officer
|
82
|
Other
|
16,462
|
Total expenses
|
1,556,758
|
Fees waived or expenses reimbursed by Investment Manager and its affiliates
|
(315,648)
|
Fees waived by distributor
|
|
Class C
|
(33,788)
|
Expense reduction
|
(120)
|
Total net expenses
|
1,207,202
|
Net investment income
|
5,756,899
|
Realized and unrealized gain (loss) — net
|
|
Net realized gain (loss) on:
|
|
Investments — unaffiliated issuers
|
117,926
|
Net realized gain
|
117,926
|
Net change in unrealized appreciation (depreciation) on:
|
|
Investments — unaffiliated issuers
|
10,719,015
|
Net change in unrealized appreciation (depreciation)
|
10,719,015
|
Net realized and unrealized gain
|
10,836,941
|
Net increase in net assets resulting from operations
|
$16,593,840
|
The accompanying Notes to
Financial Statements are an integral part of this statement.
18
|
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
Statement of Changes in Net Assets
|
Year Ended
October 31, 2019
|
Year Ended
October 31, 2018
|
Operations
|
|
|
Net investment income
|
$5,756,899
|
$6,371,471
|
Net realized gain (loss)
|
117,926
|
(82,669)
|
Net change in unrealized appreciation (depreciation)
|
10,719,015
|
(8,370,025)
|
Net increase (decrease) in net assets resulting from operations
|
16,593,840
|
(2,081,223)
|
Distributions to shareholders
|
|
|
Net investment income and net realized gains
|
|
|
Class A
|
(418,858)
|
(388,647)
|
Advisor Class
|
(22,102)
|
(26,733)
|
Class C
|
(230,180)
|
(335,326)
|
Institutional Class
|
(4,825,185)
|
(5,518,167)
|
Institutional 2 Class
|
(93,377)
|
(19,190)
|
Institutional 3 Class
|
(14,351)
|
(8,229)
|
Class V
|
(152,846)
|
(178,337)
|
Total distributions to shareholders
|
(5,756,899)
|
(6,474,629)
|
Increase (decrease) in net assets from capital stock activity
|
17,619,060
|
(25,643,434)
|
Total increase (decrease) in net assets
|
28,456,001
|
(34,199,286)
|
Net assets at beginning of year
|
204,013,737
|
238,213,023
|
Net assets at end of year
|
$232,469,738
|
$204,013,737
|
The accompanying Notes to
Financial Statements are an integral part of this statement.
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
19
|
Statement of Changes in Net Assets (continued)
|
Year Ended
|
Year Ended
|
|
October 31, 2019
|
October 31, 2018
|
|
Shares
|
Dollars ($)
|
Shares
|
Dollars ($)
|
Capital stock activity
|
Class A
|
|
|
|
|
Subscriptions
|
600,175
|
7,077,877
|
230,487
|
2,690,117
|
Distributions reinvested
|
27,505
|
327,603
|
27,393
|
319,852
|
Redemptions
|
(197,870)
|
(2,335,727)
|
(404,634)
|
(4,725,256)
|
Net increase (decrease)
|
429,810
|
5,069,753
|
(146,754)
|
(1,715,287)
|
Advisor Class
|
|
|
|
|
Subscriptions
|
91,879
|
1,086,222
|
2,541
|
29,685
|
Distributions reinvested
|
1,834
|
21,832
|
2,265
|
26,442
|
Redemptions
|
(56,450)
|
(655,886)
|
(48,686)
|
(574,797)
|
Net increase (decrease)
|
37,263
|
452,168
|
(43,880)
|
(518,670)
|
Class C
|
|
|
|
|
Subscriptions
|
62,129
|
737,099
|
75,041
|
879,147
|
Distributions reinvested
|
13,647
|
161,897
|
20,448
|
238,805
|
Redemptions
|
(337,572)
|
(4,001,905)
|
(434,385)
|
(5,083,670)
|
Net decrease
|
(261,796)
|
(3,102,909)
|
(338,896)
|
(3,965,718)
|
Institutional Class
|
|
|
|
|
Subscriptions
|
3,989,833
|
47,292,715
|
1,810,245
|
21,218,988
|
Distributions reinvested
|
63,656
|
756,979
|
79,239
|
924,811
|
Redemptions
|
(2,979,678)
|
(34,907,978)
|
(3,642,882)
|
(42,524,949)
|
Net increase (decrease)
|
1,073,811
|
13,141,716
|
(1,753,398)
|
(20,381,150)
|
Institutional 2 Class
|
|
|
|
|
Subscriptions
|
228,297
|
2,672,431
|
128,380
|
1,498,623
|
Distributions reinvested
|
7,793
|
93,105
|
1,625
|
18,896
|
Redemptions
|
(40,504)
|
(479,767)
|
(19,799)
|
(230,492)
|
Net increase
|
195,586
|
2,285,769
|
110,206
|
1,287,027
|
Institutional 3 Class
|
|
|
|
|
Subscriptions
|
51,818
|
613,997
|
1,603
|
18,748
|
Distributions reinvested
|
760
|
9,099
|
675
|
7,921
|
Redemptions
|
(13,121)
|
(157,447)
|
(13,778)
|
(161,824)
|
Net increase (decrease)
|
39,457
|
465,649
|
(11,500)
|
(135,155)
|
Class V
|
|
|
|
|
Subscriptions
|
2,766
|
32,917
|
3,445
|
40,226
|
Distributions reinvested
|
7,786
|
92,550
|
8,891
|
103,770
|
Redemptions
|
(68,927)
|
(818,553)
|
(30,715)
|
(358,477)
|
Net decrease
|
(58,375)
|
(693,086)
|
(18,379)
|
(214,481)
|
Total net increase (decrease)
|
1,455,756
|
17,619,060
|
(2,202,601)
|
(25,643,434)
|
The accompanying Notes to Financial Statements are
an integral part of this statement.
20
|
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
[THIS PAGE INTENTIONALLY LEFT
BLANK]
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
21
|
The following table is intended to
help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are
calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total
return and portfolio turnover are not annualized for periods of less than one year. The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments and certain
derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be higher.
|
Net asset value,
beginning of
period
|
Net
investment
income
|
Net
realized
and
unrealized
gain (loss)
|
Total from
investment
operations
|
Distributions
from net
investment
income
|
Distributions
from net
realized
gains
|
Total
distributions to
shareholders
|
Class A
|
Year Ended 10/31/2019
|
$11.46
|
0.29
|
0.61
|
0.90
|
(0.29)
|
—
|
(0.29)
|
Year Ended 10/31/2018
|
$11.91
|
0.31
|
(0.44)
|
(0.13)
|
(0.31)
|
(0.01)
|
(0.32)
|
Year Ended 10/31/2017
|
$12.09
|
0.32
|
(0.18)
|
0.14
|
(0.32)
|
(0.00)(d)
|
(0.32)
|
Year Ended 10/31/2016
|
$12.11
|
0.34
|
(0.02)
|
0.32
|
(0.34)
|
—
|
(0.34)
|
Year Ended 10/31/2015
|
$12.21
|
0.36
|
(0.10)
|
0.26
|
(0.36)
|
—
|
(0.36)
|
Advisor Class
|
Year Ended 10/31/2019
|
$11.45
|
0.32
|
0.61
|
0.93
|
(0.32)
|
—
|
(0.32)
|
Year Ended 10/31/2018
|
$11.90
|
0.34
|
(0.44)
|
(0.10)
|
(0.34)
|
(0.01)
|
(0.35)
|
Year Ended 10/31/2017
|
$12.08
|
0.35
|
(0.18)
|
0.17
|
(0.35)
|
(0.00)(d)
|
(0.35)
|
Year Ended 10/31/2016
|
$12.10
|
0.37
|
(0.02)
|
0.35
|
(0.37)
|
—
|
(0.37)
|
Year Ended 10/31/2015
|
$12.19
|
0.39
|
(0.09)
|
0.30
|
(0.39)
|
—
|
(0.39)
|
Class C
|
Year Ended 10/31/2019
|
$11.46
|
0.24
|
0.61
|
0.85
|
(0.24)
|
—
|
(0.24)
|
Year Ended 10/31/2018
|
$11.91
|
0.26
|
(0.44)
|
(0.18)
|
(0.26)
|
(0.01)
|
(0.27)
|
Year Ended 10/31/2017
|
$12.09
|
0.27
|
(0.18)
|
0.09
|
(0.27)
|
(0.00)(d)
|
(0.27)
|
Year Ended 10/31/2016
|
$12.11
|
0.28
|
(0.02)
|
0.26
|
(0.28)
|
—
|
(0.28)
|
Year Ended 10/31/2015
|
$12.20
|
0.30
|
(0.09)
|
0.21
|
(0.30)
|
—
|
(0.30)
|
Institutional Class
|
Year Ended 10/31/2019
|
$11.46
|
0.32
|
0.61
|
0.93
|
(0.32)
|
—
|
(0.32)
|
Year Ended 10/31/2018
|
$11.91
|
0.34
|
(0.44)
|
(0.10)
|
(0.34)
|
(0.01)
|
(0.35)
|
Year Ended 10/31/2017
|
$12.09
|
0.35
|
(0.18)
|
0.17
|
(0.35)
|
(0.00)(d)
|
(0.35)
|
Year Ended 10/31/2016
|
$12.11
|
0.37
|
(0.02)
|
0.35
|
(0.37)
|
—
|
(0.37)
|
Year Ended 10/31/2015
|
$12.20
|
0.39
|
(0.09)
|
0.30
|
(0.39)
|
—
|
(0.39)
|
Institutional 2 Class
|
Year Ended 10/31/2019
|
$11.48
|
0.33
|
0.61
|
0.94
|
(0.33)
|
—
|
(0.33)
|
Year Ended 10/31/2018
|
$11.93
|
0.35
|
(0.44)
|
(0.09)
|
(0.35)
|
(0.01)
|
(0.36)
|
Year Ended 10/31/2017
|
$12.11
|
0.36
|
(0.18)
|
0.18
|
(0.36)
|
(0.00)(d)
|
(0.36)
|
Year Ended 10/31/2016(f)
|
$12.23
|
0.25
|
(0.12)
|
0.13
|
(0.25)
|
—
|
(0.25)
|
Institutional 3 Class
|
Year Ended 10/31/2019
|
$11.50
|
0.33
|
0.63
|
0.96
|
(0.34)
|
—
|
(0.34)
|
Year Ended 10/31/2018
|
$11.95
|
0.36
|
(0.45)
|
(0.09)
|
(0.35)
|
(0.01)
|
(0.36)
|
Year Ended 10/31/2017(h)
|
$11.81
|
0.24
|
0.14(i)
|
0.38
|
(0.24)
|
—
|
(0.24)
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
22
|
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
Financial Highlights (continued)
|
Net
asset
value,
end of
period
|
Total
return
|
Total gross
expense
ratio to
average
net assets(a)
|
Total net
expense
ratio to
average
net assets(a),(b)
|
Net investment
income
ratio to
average
net assets
|
Portfolio
turnover
|
Net
assets,
end of
period
(000’s)
|
Class A
|
Year Ended 10/31/2019
|
$12.07
|
7.96%
|
0.90%
|
0.75%(c)
|
2.46%
|
19%
|
$19,270
|
Year Ended 10/31/2018
|
$11.46
|
(1.11%)
|
0.89%
|
0.75%(c)
|
2.68%
|
15%
|
$13,368
|
Year Ended 10/31/2017
|
$11.91
|
1.24%
|
0.91%(e)
|
0.74%(c),(e)
|
2.70%
|
9%
|
$15,639
|
Year Ended 10/31/2016
|
$12.09
|
2.63%
|
0.95%
|
0.75%(c)
|
2.76%
|
13%
|
$29,857
|
Year Ended 10/31/2015
|
$12.11
|
2.15%
|
0.96%
|
0.75%(c)
|
2.95%
|
12%
|
$33,348
|
Advisor Class
|
Year Ended 10/31/2019
|
$12.06
|
8.23%
|
0.65%
|
0.50%(c)
|
2.71%
|
19%
|
$1,234
|
Year Ended 10/31/2018
|
$11.45
|
(0.87%)
|
0.64%
|
0.50%(c)
|
2.91%
|
15%
|
$745
|
Year Ended 10/31/2017
|
$11.90
|
1.49%
|
0.66%(e)
|
0.49%(c),(e)
|
2.96%
|
9%
|
$1,296
|
Year Ended 10/31/2016
|
$12.08
|
2.89%
|
0.71%
|
0.50%(c)
|
3.00%
|
13%
|
$1,611
|
Year Ended 10/31/2015
|
$12.10
|
2.49%
|
0.72%
|
0.50%(c)
|
3.20%
|
12%
|
$682
|
Class C
|
Year Ended 10/31/2019
|
$12.07
|
7.47%
|
1.65%
|
1.20%(c)
|
2.05%
|
19%
|
$9,996
|
Year Ended 10/31/2018
|
$11.46
|
(1.56%)
|
1.64%
|
1.20%(c)
|
2.23%
|
15%
|
$12,491
|
Year Ended 10/31/2017
|
$11.91
|
0.78%
|
1.66%(e)
|
1.19%(c),(e)
|
2.25%
|
9%
|
$17,015
|
Year Ended 10/31/2016
|
$12.09
|
2.17%
|
1.71%
|
1.20%(c)
|
2.31%
|
13%
|
$24,011
|
Year Ended 10/31/2015
|
$12.11
|
1.77%
|
1.71%
|
1.20%(c)
|
2.50%
|
12%
|
$19,817
|
Institutional Class
|
Year Ended 10/31/2019
|
$12.07
|
8.23%
|
0.65%
|
0.50%(c)
|
2.72%
|
19%
|
$191,680
|
Year Ended 10/31/2018
|
$11.46
|
(0.87%)
|
0.64%
|
0.50%(c)
|
2.93%
|
15%
|
$169,671
|
Year Ended 10/31/2017
|
$11.91
|
1.49%
|
0.66%(e)
|
0.49%(c),(e)
|
2.95%
|
9%
|
$197,180
|
Year Ended 10/31/2016
|
$12.09
|
2.89%
|
0.71%
|
0.50%(c)
|
3.02%
|
13%
|
$230,980
|
Year Ended 10/31/2015
|
$12.11
|
2.49%
|
0.72%
|
0.50%(c)
|
3.20%
|
12%
|
$216,139
|
Institutional 2 Class
|
Year Ended 10/31/2019
|
$12.09
|
8.29%
|
0.58%
|
0.43%
|
2.77%
|
19%
|
$3,916
|
Year Ended 10/31/2018
|
$11.48
|
(0.77%)
|
0.58%
|
0.44%
|
3.03%
|
15%
|
$1,472
|
Year Ended 10/31/2017
|
$11.93
|
1.56%
|
0.58%(e)
|
0.42%(e)
|
3.02%
|
9%
|
$215
|
Year Ended 10/31/2016(f)
|
$12.11
|
1.08%
|
0.58%(g)
|
0.41%(g)
|
3.19%(g)
|
13%
|
$156
|
Institutional 3 Class
|
Year Ended 10/31/2019
|
$12.12
|
8.41%
|
0.54%
|
0.39%
|
2.80%
|
19%
|
$678
|
Year Ended 10/31/2018
|
$11.50
|
(0.73%)
|
0.54%
|
0.38%
|
3.05%
|
15%
|
$190
|
Year Ended 10/31/2017(h)
|
$11.95
|
3.24%
|
0.52%(g)
|
0.39%(g)
|
3.06%(g)
|
9%
|
$335
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
23
|
Financial Highlights (continued)
|
Net asset value,
beginning of
period
|
Net
investment
income
|
Net
realized
and
unrealized
gain (loss)
|
Total from
investment
operations
|
Distributions
from net
investment
income
|
Distributions
from net
realized
gains
|
Total
distributions to
shareholders
|
Class V
|
Year Ended 10/31/2019
|
$11.46
|
0.31
|
0.61
|
0.92
|
(0.31)
|
—
|
(0.31)
|
Year Ended 10/31/2018
|
$11.91
|
0.33
|
(0.45)
|
(0.12)
|
(0.32)
|
(0.01)
|
(0.33)
|
Year Ended 10/31/2017
|
$12.09
|
0.33
|
(0.17)
|
0.16
|
(0.34)
|
(0.00)(d)
|
(0.34)
|
Year Ended 10/31/2016
|
$12.11
|
0.35
|
(0.02)
|
0.33
|
(0.35)
|
—
|
(0.35)
|
Year Ended 10/31/2015
|
$12.20
|
0.37
|
(0.09)
|
0.28
|
(0.37)
|
—
|
(0.37)
|
Notes to Financial Highlights
|
(a)
|
In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such
indirect expenses are not included in the Fund’s reported expense ratios.
|
(b)
|
Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable.
|
(c)
|
The benefits derived from expense reductions had an impact of less than 0.01%.
|
(d)
|
Rounds to zero.
|
(e)
|
Expenses have been reduced due to a reimbursement of expenses overbilled by a third party. If the reimbursement had been excluded, the expense ratios would have been higher by the
percentages shown for each class in the table below. All fee waivers and expense reimbursements by the Investment Manager and its affiliates were applied before giving effect to this third party reimbursement.
|
Year Ended
|
Class A
|
Advisor
Class
|
Class C
|
Institutional
Class
|
Institutional 2
Class
|
Class V
|
10/31/2017
|
0.01%
|
0.01%
|
0.01%
|
0.01%
|
0.01%
|
0.01%
|
(f)
|
Institutional 2 Class shares commenced operations on March 1, 2016. Per share data and total return reflect activity from that date.
|
(g)
|
Annualized.
|
(h)
|
Institutional 3 Class shares commenced operations on March 1, 2017. Per share data and total return reflect activity from that date.
|
(i)
|
Calculation of the net gain (loss) per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gain (loss) presented in the Statement of
Operations due to the timing of subscriptions and redemptions of Fund shares in relation to fluctuations in the market value of the portfolio.
|
The accompanying Notes to
Financial Statements are an integral part of this statement.
24
|
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
Financial Highlights (continued)
|
Net
asset
value,
end of
period
|
Total
return
|
Total gross
expense
ratio to
average
net assets(a)
|
Total net
expense
ratio to
average
net assets(a),(b)
|
Net investment
income
ratio to
average
net assets
|
Portfolio
turnover
|
Net
assets,
end of
period
(000’s)
|
Class V
|
Year Ended 10/31/2019
|
$12.07
|
8.07%
|
0.80%
|
0.65%(c)
|
2.59%
|
19%
|
$5,696
|
Year Ended 10/31/2018
|
$11.46
|
(1.01%)
|
0.79%
|
0.65%(c)
|
2.78%
|
15%
|
$6,077
|
Year Ended 10/31/2017
|
$11.91
|
1.33%
|
0.81%(e)
|
0.64%(c),(e)
|
2.80%
|
9%
|
$6,533
|
Year Ended 10/31/2016
|
$12.09
|
2.74%
|
0.86%
|
0.65%(c)
|
2.87%
|
13%
|
$7,022
|
Year Ended 10/31/2015
|
$12.11
|
2.33%
|
0.87%
|
0.65%(c)
|
3.05%
|
12%
|
$7,406
|
The accompanying Notes to Financial Statements are
an integral part of this statement.
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
25
|
Notes to Financial Statements
October 31, 2019
Note 1. Organization
Columbia New York Intermediate
Municipal Bond Fund (the Fund), a series of Columbia Funds Series Trust I (the Trust), is a non-diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an
open-end management investment company organized as a Massachusetts business trust.
Fund shares
The Trust may issue an unlimited
number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation
rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have
different minimum initial investment amounts and pay different distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a liquidation will be
proportional to the net asset value of each share class.
As described in the Fund’s
prospectus, Class A and Class C shares are offered to the general public for investment. Advisor Class, Institutional Class, Institutional 2 Class and Institutional 3 Class are available through authorized investment
professionals to omnibus retirement plans or to institutional investors and to certain other investors as also described in the Fund’s prospectus. Class C shares automatically convert to Class A shares after 10
years. Class V shares are available only to investors who received (and who continuously held) Class V shares in connection with previous fund reorganizations.
Note 2. Summary of
significant accounting policies
Basis of preparation
The Fund is an investment company
that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires
management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of
significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Debt securities generally are
valued by pricing services approved by the Board of Trustees based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques that take
into account, as applicable, factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as approved independent broker-dealer quotes. Debt securities for
which quotations are not readily available or not believed to be reflective of market value may also be valued based upon a bid quote from an approved independent broker-dealer. Debt securities maturing in 60 days or
less are valued primarily at amortized cost value, unless this method results in a valuation that management believes does not approximate market value.
Investments in open-end investment
companies, including money market funds, are valued at their latest net asset value.
Investments for which market
quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by
and under the general supervision of the Board of Trustees. If a security or class of securities (such as foreign securities) is valued at fair value, such value is likely to be different from the quoted or published
price for the security, if available.
The determination of fair value
often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and estimated risk premiums. Multiple inputs from various sources may be used
to determine fair value.
26
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Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
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Notes to Financial Statements (continued)
October 31, 2019
GAAP requires disclosure regarding
the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category. This information is disclosed following
the Fund’s Portfolio of Investments.
Delayed delivery securities
The Fund may trade securities on
other than normal settlement terms, including securities purchased or sold on a “when-issued” or "forward commitment" basis. This may increase risk to the Fund since the other party to the transaction may
fail to deliver, which could cause the Fund to subsequently invest at less advantageous prices. The Fund designates cash or liquid securities in an amount equal to the delayed delivery commitment.
Security transactions
Security transactions are accounted
for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income recognition
Interest income is recorded on an
accrual basis. Market premiums and discounts, including original issue discounts, are amortized and accreted, respectively, over the expected life of the security on all debt securities, unless otherwise noted.
The Fund may place a debt security
on non-accrual status and reduce related interest income when it becomes probable that the interest will not be collected and the amount of uncollectible interest can be reasonably estimated. A defaulted debt security
is removed from non-accrual status when the issuer resumes interest payments or when collectibility of interest is reasonably assured.
Dividend income is recorded on the
ex-dividend date.
Expenses
General expenses of the Trust are
allocated to the Fund and other funds of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are
charged to the Fund. Expenses directly attributable to a specific class of shares are charged to that share class.
Determination of class net asset
value
All income, expenses (other than
class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on
the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each
year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its net tax-exempt and investment company taxable income and net capital
gain, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net
income and certain other amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Distributions to shareholders
Distributions from net investment
income, if any, are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal
income tax regulations, which may differ from GAAP.
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
27
|
Notes to Financial Statements (continued)
October 31, 2019
Guarantees and indemnifications
Under the Trust’s
organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition,
certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims
that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
Recent accounting pronouncements
Accounting Standards Update 2017-08
Premium Amortization on Purchased Callable Debt Securities
In March 2017, the Financial
Accounting Standards Board issued Accounting Standards Update (ASU) No. 2017-08 Premium Amortization on Purchased Callable Debt Securities. ASU No. 2017-08 updates the accounting standards to shorten the amortization
period for certain purchased callable debt securities, held at a premium, to be amortized to the earliest call date. The update applies to securities with explicit, noncontingent call features that are callable at
fixed prices and on preset dates. The standard is effective for annual periods beginning after December 15, 2018 and interim periods within those fiscal years. Management does not expect the implementation of this
guidance to have a material impact on the financial statement amounts and footnote disclosures.
Accounting Standards Update 2018-13
Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement
In August 2018, the Financial
Accounting Standards Board issued Accounting Standards Update (ASU) No. 2018-13 Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The standard is effective for annual periods
beginning after December 15, 2019 and interim periods within those fiscal years, with early adoption permitted. After evaluation, management determined to adopt the ASU effective for the period ended July 31, 2019 and
all subsequent periods. To comply with the ASU, management implemented disclosure changes which include removal of the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, removal
of the policy for the timing of transfers between levels, removal of the description of the Level 3 valuation processes, as well as modifications to the measurement uncertainty disclosure.
Note 3. Fees and other
transactions with affiliates
Management services fees
The Fund has entered into a
Management Agreement with Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). Under the Management Agreement, the
Investment Manager provides the Fund with investment research and advice, as well as administrative and accounting services. The management services fee is an annual fee that is equal to a percentage of the
Fund’s daily net assets that declines from 0.47% to 0.31% as the Fund’s net assets increase. The effective management services fee rate for the year ended October 31, 2019 was 0.47% of the Fund’s
average daily net assets.
Compensation of board members
Members of the Board of Trustees
who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. These members of the Board of Trustees
may participate in a Deferred Compensation Plan (the Deferred Plan) which may be terminated at any time. Obligations of the Deferred Plan will be paid solely out of the Fund’s assets, and all amounts payable
under the Deferred Plan constitute a general unsecured obligation of the Fund.
Compensation of Chief Compliance
Officer
The Board of Trustees has appointed
a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated
to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
28
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Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
Notes to Financial Statements (continued)
October 31, 2019
Transfer agency fees
Under a Transfer and Dividend
Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for
providing transfer agency services to the Fund. The Transfer Agent has contracted with DST Asset Manager Solutions, Inc. (DST) to serve as sub-transfer agent. The Transfer Agent pays the fees of DST for services as
sub-transfer agent and DST is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
The Fund pays the Transfer Agent a
monthly transfer agency fee based on the number or the average value of accounts, depending on the type of account. In addition, the Fund pays the Transfer Agent a fee for shareholder services based on the number of
accounts or on a percentage of the average aggregate value of the Fund’s shares maintained in omnibus accounts up to the lesser of the amount charged by the financial intermediary or a cap established by the
Board of Trustees from time to time.
The Transfer Agent also receives
compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees. Total transfer agency fees for Institutional 2 Class and Institutional 3 Class shares are subject to an
annual limitation of not more than 0.07% and 0.02%, respectively, of the average daily net assets attributable to each share class.
For the year ended October 31,
2019, the Fund’s effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
|
Effective rate (%)
|
Class A
|
0.13
|
Advisor Class
|
0.13
|
Class C
|
0.13
|
Institutional Class
|
0.13
|
Institutional 2 Class
|
0.06
|
Institutional 3 Class
|
0.02
|
Class V
|
0.13
|
An annual minimum account balance
fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum
account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the year ended October 31, 2019, these minimum account balance fees reduced total expenses
of the Fund by $120.
Distribution and service fees
The Fund has entered into an
agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder
services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the
Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a
monthly service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class A and Class C shares of the Fund. Also under the Plans, the Fund pays a monthly
distribution fee to the Distributor at the maximum annual rate of 0.75% of the average daily net assets attributable to Class C shares of the Fund.
The Distributor has voluntarily
agreed to waive a portion of the distribution fee for Class C shares so that the distribution fee does not exceed 0.45% annually of the average daily net assets attributable to Class C shares. This arrangement may be
modified or terminated by the Distributor at any time.
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
29
|
Notes to Financial Statements (continued)
October 31, 2019
Shareholder services fees
The Fund has adopted a shareholder
services plan that permits it to pay for certain services provided to Class V shareholders by their selling and/or servicing agents. The Fund may pay shareholder servicing fees up to an aggregate annual rate of 0.40%
of the Fund’s average daily net assets attributable to Class V shares (comprised of up to 0.20% for shareholder liaison services and up to 0.20% for administrative support services). These fees are currently
limited to an aggregate annual rate of not more than 0.15% of the Fund’s average daily net assets attributable to Class V shares.
Sales charges (unaudited)
Sales charges, including front-end
charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the year ended October 31, 2019, if any, are listed below:
|
Front End (%)
|
CDSC (%)
|
Amount ($)
|
Class A
|
3.00
|
0.75(a)
|
15,563
|
Class C
|
—
|
1.00(b)
|
471
|
Class V
|
4.75
|
0.50 - 1.00(c)
|
418
|
(a)
|
This charge is imposed on certain investments of $500,000 or more if redeemed within 12 months after purchase.
|
(b)
|
This charge applies to redemptions within 12 months after purchase, with certain limited exceptions.
|
(c)
|
This charge is imposed on certain investments of between $1 million and $50 million redeemed within 18 months after purchase, as follows: 1.00% if redeemed within 12 months after
purchase, and 0.50% if redeemed more than 12, but less than 18, months after purchase, with certain limited exceptions.
|
The Fund’s other share
classes are not subject to sales charges.
Expenses waived/reimbursed by the
Investment Manager and its affiliates
The Investment Manager and certain
of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole
discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s
custodian, do not exceed the following annual rate(s) as a percentage of the class’ average daily net assets:
|
March 1, 2019
through
February 29, 2020
|
Prior to
March 1, 2019
|
Class A
|
0.75%
|
0.75%
|
Advisor Class
|
0.50
|
0.50
|
Class C
|
1.50
|
1.50
|
Institutional Class
|
0.50
|
0.50
|
Institutional 2 Class
|
0.43
|
0.44
|
Institutional 3 Class
|
0.39
|
0.39
|
Class V
|
0.65
|
0.65
|
Under the agreement governing
these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes
(including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and
brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed
money, interest, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be modified or amended only with approval from
the Investment Manager, certain of its affiliates and the Fund. Any fees waived and/or expenses reimbursed under the expense reimbursement arrangements described above are not recoverable by the Investment Manager or
its affiliates in future periods. Class C distribution fees waived by the Distributor, as discussed above, are in addition to the waiver/reimbursement commitment under the agreement.
30
|
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
Notes to Financial Statements (continued)
October 31, 2019
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 October 31, 2019, these
differences were primarily due to differing treatment for trustees’ deferred compensation and distributions. 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 Fund did not have any permanent
differences; therefore, no reclassifications were made.
The tax character of distributions
paid during the years indicated was as follows:
Year Ended October 31, 2019
|
Year Ended October 31, 2018
|
Ordinary
income ($)
|
Tax-exempt
income ($)
|
Long-term
capital gains ($)
|
Total ($)
|
Ordinary
income ($)
|
Tax-exempt
income ($)
|
Long-term
capital gains ($)
|
Total ($)
|
74
|
5,756,825
|
—
|
5,756,899
|
4
|
6,386,363
|
88,262
|
6,474,629
|
Short-term capital gain
distributions, if any, are considered ordinary income distributions for tax purposes.
At October 31, 2019, the components
of distributable earnings on a tax basis were as follows:
Undistributed
ordinary income ($)
|
Undistributed tax-
exempt income ($)
|
Undistributed
long-term
capital gains ($)
|
Capital loss
carryforwards ($)
|
Net unrealized
appreciation ($)
|
—
|
742,024
|
35,285
|
—
|
12,375,555
|
At October 31, 2019, 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) ($)
|
Net unrealized
appreciation ($)
|
222,608,089
|
12,463,527
|
(87,972)
|
12,375,555
|
Tax cost of investments and
unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
The following capital loss
carryforwards, determined at October 31, 2019, may be available to reduce taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code. Capital
loss carryforwards with no expiration are required to be utilized prior to any capital losses which carry an expiration date. As a result of this ordering rule, capital loss carryforwards which carry an expiration
date may be more likely to expire unused. In addition, for the year ended October 31, 2019, capital loss carryforwards utilized and expired unused, if any, were as follows:
No expiration
short-term ($)
|
No expiration
long-term ($)
|
Total ($)
|
Utilized ($)
|
Expired ($)
|
—
|
—
|
—
|
82,641
|
—
|
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 $54,835,708 and $39,617,529, respectively, for the year ended October 31, 2019. The amount of purchase and
sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
31
|
Notes to Financial Statements (continued)
October 31, 2019
Note 6. Interfund
lending
Pursuant to an exemptive order
granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and,
except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject
to certain restrictions.
Interfund loans are subject to the
risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject
to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund did not borrow or lend
money under the Interfund Program during the year ended October 31, 2019.
Note 7. Line of credit
The Fund has access to a
revolving credit facility with a syndicate of banks led by Citibank, N.A., HSBC Bank USA, N.A. and JPMorgan Chase Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for
other temporary or emergency purposes. The credit facility, which is a collective agreement between the Fund and certain other funds managed by the Investment Manager or an affiliated investment manager, severally and
not jointly, permits collective borrowings up to $1 billion. Interest is charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the
one-month LIBOR rate and (iii) the overnight bank funding rate, plus in each case, 1.00%. Each borrowing under the credit facility matures no later than 60 days after the date of borrowing. The Fund also pays a
commitment fee equal to its pro rata share of the unused amount of the credit facility at a rate of 0.15% per annum. The commitment fee is included in other expenses in the Statement of Operations. This agreement
expires annually in December unless extended or renewed.
The Fund had no borrowings during
the year ended October 31, 2019.
Note 8. Significant
risks
Credit risk
Credit risk is the risk that the
value of debt securities in the Fund’s portfolio may decline because the issuer defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations,
such as making payments to the Fund when due. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. Lower rated or unrated debt instruments held by the Fund may
present increased credit risk as compared to higher-rated debt instruments.
Geographic concentration risk
Because the Fund invests
substantially in municipal securities issued by the state identified in the Fund’s name and political sub-divisions of that state, the Fund will be particularly affected by adverse tax, legislative, regulatory,
demographic or political changes as well as changes impacting the state’s financial, economic or other condition and prospects. In addition, because of the relatively small number of issuers of tax-exempt
securities in the state, the Fund may invest a higher percentage of assets in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly. The value of municipal and other
securities owned by the Fund also may be adversely affected by future changes in federal or state income tax laws.
Interest rate risk
Interest rate risk is the risk of
losses attributable to changes in interest rates. In general, if prevailing interest rates rise, the values of debt securities tend to fall, and if interest rates fall, the values of debt securities tend to rise.
Actions by governments and central banking authorities can result in increases in interest rates. Increasing interest rates may negatively affect the value of debt securities held by the Fund, resulting in a negative
impact on the Fund’s performance and net asset value per share. In general, the longer the maturity or duration of a debt security, the greater its sensitivity to changes in interest rates.
32
|
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
Notes to Financial Statements (continued)
October 31, 2019
Liquidity risk
Liquidity risk is the risk
associated with a lack of marketability of investments which may make it difficult to sell the investment at a desirable time or price. Changing regulatory, market or other conditions or environments (for example, the
interest rate or credit environments) may adversely affect the liquidity of the Fund’s investments. The Fund may have to accept a lower selling price for the holding, sell other investments, or forego another,
more appealing investment opportunity. Generally, the less liquid the market at the time the Fund sells a portfolio investment, the greater the risk of loss or decline of value to the Fund. A less liquid market can
lead to an increase in Fund redemptions, which may negatively impact Fund performance and net asset value per share, including, for example, if the Fund is forced to sell securities in a down market.
Non-diversification risk
A non-diversified fund is permitted
to invest a greater percentage of its total assets in fewer issuers than a diversified fund. This increases the risk that a change in the value of any one investment held by the Fund could affect the overall value of
the Fund more than it would affect that of a diversified fund holding a greater number of investments. Accordingly, the Fund’s value will likely be more volatile than the value of a more diversified fund.
Shareholder concentration risk
At October 31, 2019, one
unaffiliated shareholder of record owned 71.0% of the outstanding shares of the Fund in one or more accounts. The Fund has no knowledge about whether any portion of those shares was owned beneficially. Subscription
and redemption activity by concentrated accounts may have a significant effect on the operations of the Fund. In the case of a large redemption, the Fund may be forced to sell investments at inopportune times,
including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of less liquid positions. Large redemptions could result in decreased economies of scale and increased operating
expenses for non-redeeming Fund shareholders.
Note 9. Subsequent
events
Management has evaluated the
events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 10. Information
regarding pending and settled legal proceedings
Ameriprise Financial and certain
of its affiliates have historically been involved in a number of legal, arbitration and regulatory proceedings, including routine litigation, class actions, and governmental actions, concerning matters arising in
connection with the conduct of their business activities. Ameriprise Financial believes that the Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject
of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with
the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and regulatory matters that relate to
Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that
these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe
proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to
uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines,
penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial.
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
33
|
Report of Independent Registered Public
Accounting Firm
To the Board of Trustees of Columbia
Funds Series Trust I and Shareholders of Columbia New York Intermediate Municipal Bond Fund
Opinion on the Financial
Statements
We have audited the accompanying
statement of assets and liabilities, including the portfolio of investments, of Columbia New York Intermediate Municipal Bond Fund (one of the funds constituting Columbia Funds Series Trust I, hereafter referred to as
the "Fund") as of October 31, 2019, the related statement of operations for the year ended October 31, 2019, the statement of changes in net assets for each of the two years in the period ended October 31, 2019,
including the related notes, and the financial highlights for each of the periods indicated therein (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 October 31, 2019, 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 October 31, 2019 and the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the
responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of
the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these
financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud.
Our audits included performing
procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test
basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating
the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2019 by correspondence with the custodian and brokers; when replies were not received
from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Minneapolis, Minnesota
December 20, 2019
We have served as the auditor of
one or more investment companies within the Columbia Funds Complex since 1977.
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|
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
Federal Income Tax
Information
(Unaudited)
The Fund hereby designates the
following tax attributes for the fiscal year ended October 31, 2019. Shareholders will be notified in early 2020 of the amounts for use in preparing 2019 income tax returns.
Capital
gain
dividend
|
Exempt-
interest
dividends
|
$37,049
|
99.99%
|
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.
Exempt-interest dividends. The
percentage of net investment income distributed during the fiscal year that qualifies as exempt-interest dividends for federal income tax purposes.
TRUSTEES AND
OFFICERS
The Board oversees the Fund’s
operations and appoints 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 Trustees 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. The year set forth beneath Length of Service
in the table below is the year in which the Trustee was first appointed or elected as Trustee to any Fund currently in the Columbia Funds Complex or a predecessor thereof. Under current Board policy, members serve
terms of indefinite duration.
Independent trustees
Name, address, year of birth
|
Position held with the Trust and length of service
|
Principal occupation(s) during the past five years and other relevant professional experience
|
Number of Funds in the Columbia Fund Complex overseen
|
Other directorships held by Trustee during the past five years
|
Janet Langford Carrig
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1957
|
Trustee
1996
|
Senior Vice President, General Counsel and Corporate Secretary, ConocoPhillips (independent energy company), September 2007-October 2018
|
71
|
Director, EQT Corporation (natural gas producer)
|
Douglas A. Hacker
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1955
|
Trustee and Chairman of the Board
1996
|
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
|
71
|
Director, Spartan Nash Company (food distributor); Director, Aircastle Limited (aircraft leasing); 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
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1956
|
Trustee
2011
|
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
|
71
|
None
|
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
35
|
TRUSTEES AND OFFICERS (continued)
Independent trustees (continued)
Name, address, year of birth
|
Position held with the Trust and length of service
|
Principal occupation(s) during the past five years and other relevant professional experience
|
Number of Funds in the Columbia Fund Complex overseen
|
Other directorships held by Trustee during the past five years
|
David M. Moffett
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1952
|
Trustee
2011
|
Retired. Consultant to Bridgewater and Associates
|
71
|
Director, CSX Corporation (transportation suppliers); Director, Genworth Financial, Inc. (financial and insurance products and services);
Director, PayPal Holdings Inc. (payment and data processing services); Trustee, University of Oklahoma Foundation; former Director, eBay Inc. (online trading community), 2007-2015; and former Director, CIT Bank, CIT
Group Inc. (commercial and consumer finance), 2010-2016
|
John J. Neuhauser
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1943
|
Trustee
1984
|
President, Saint Michael’s College, August 2007-June 2018; Director or Trustee of several non-profit organizations, including University
of Vermont Medical Center; Academic Vice President and Dean of Faculties, Boston College, August 1999-October 2005; University Professor, Boston College, November 2005-August 2007
|
71
|
Director, Liberty All-Star Equity Fund and Liberty All- Star Growth Fund (closed-end funds)
|
Patrick J. Simpson
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1944
|
Trustee
2000
|
Of Counsel, Perkins Coie LLP (law firm) since 2015; Partner, Perkins Coie LLP, 1988-2014
|
71
|
Former Director, M Fund, Inc. (M Funds mutual fund family), July 2018-July 2019
|
Consultants to the Independent
Trustees*
Name, address, year of birth
|
Position held with the Trust 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
|
J. Kevin Connaughton
c/o Columbia
Management Investment
Advisers, LLC,
225 Franklin Street
Mail Drop BX32 05228,
Boston, MA 02110
1964
|
Independent Trustee Consultant
2016
|
Independent Trustee Consultant, Columbia Funds since March 2016; Adjunct Professor of Finance, Bentley
University since November 2017; Managing Director and General Manager of Mutual Fund Products, Columbia Management Investment Advisers, LLC, May 2010-February 2015; President, Columbia Funds, 2009-2015; and senior
officer of Columbia Funds and affiliated funds, 2003-2015
|
71
|
Director, The Autism Project since March 2015; former Trustee, New Century Portfolios, March 2015-December 2017; formerly on
Board of Governors, Gateway Healthcare, January 2016 – December 2017
|
36
|
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
TRUSTEES AND OFFICERS (continued)
Consultants to the Independent Trustees* (continued)
Name, address, year of birth
|
Position held with the Trust 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
|
Olive Darragh
c/o Columbia
Management Investment
Advisers, LLC,
225 Franklin Street,
Mail Drop BX32 05228,
Boston, MA 02110
1962
|
Independent Trustee Consultant 2019
|
Independent Trustee Consultant, Columbia Funds since June 2019; Managing Director of Darragh Inc. (a strategy and talent management consulting
firm) since 2010; Founder and CEO, Zolio (an investment management talent identification platform) since 2004; Partner, Tudor Investments, 2004-2010; Senior Partner, McKinsey & Company, 2001-2004
|
71
|
Director, University of Edinburgh Business School; former Director, Boston Public Library Foundation
|
Natalie A. Trunow
c/o Columbia
Management Investment
Advisers, LLC,
225 Franklin Street
Mail Drop BX32 05228,
Boston, MA 02110
1967
|
Independent Trustee Consultant
2016
|
Independent Trustee Consultant, Columbia Funds since September 2016; Chief Executive Officer, Millennial
Portfolio Solutions LLC (asset management and consulting services) since January 2016; Director of Investments, Casey Family Programs, April 2016-September 2016; Senior Vice President and Chief Investment Officer,
Calvert Investments, August 2008-January 2016; Section Head and Portfolio Manager, General Motors Asset Management, June 1997-August 2008
|
71
|
Director, Health Services for Children with Special Needs, Inc.; Director, Consumer Credit Counseling Services (formerly
Guidewell Financial Solutions)
|
*
|
J. Kevin Connaughton was appointed consultant to the Independent Trustees effective March 1, 2016. Olive Darragh was appointed consultant to the Independent Trustees effective June
10, 2019. Natalie A. Trunow was appointed consultant to the Independent Trustees effective September 1, 2016. Shareholders of the Funds are expected to be asked to elect each of Mr. Connaughton, Ms. Darragh and Ms.
Trunow as a Trustee at a future shareholder meeting.
|
Interested trustee affiliated with
Investment Manager*
Name, address, year of birth
|
Position held with the Trust 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
|
William F. Truscott
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
1960
|
Trustee
2012
|
Chairman of the Board and President, Columbia Management Investment Advisers, LLC since May 2010 and
February 2012, respectively; Chief Executive Officer, Global Asset Management, Ameriprise Financial, Inc. since September 2012 (previously Chief Executive Officer, U.S. Asset Management & President, Annuities, May
2010-September 2012); Director and Chief Executive Officer, Columbia Management Investment Distributors, Inc. since May 2010 and February 2012, respectively; Chairman of the Board and Chief Executive Officer,
RiverSource Distributors, Inc. since 2006; Director, Threadneedle Asset Management Holdings, SARL since 2014; President and Chief Executive Officer, Ameriprise Certificate Company, 2006-August 2012
|
192
|
Chairman of the Board, Columbia Management Investment Advisers, LLC since May 2010; Director, Columbia Management Investment
Distributors, Inc. since May 2010; former Director, Ameriprise Certificate Company, August 2006 - January 2013
|
*
|
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, visiting columbiathreadneedleus.com/investor/ or contacting your
financial intermediary.
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
37
|
TRUSTEES AND OFFICERS (continued)
The Board has appointed 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, including principal occupations during the past five years, although their specific titles may have varied over the
period. In addition to Mr. Truscott, who is Senior Vice President, 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
|
Christopher O. Petersen
5228 Ameriprise
Financial Center
Minneapolis, MN 55474
Born 1970
|
President and Principal Executive Officer (2015)
|
Vice President and Lead Chief Counsel, Ameriprise Financial, Inc. since January 2015 (previously Vice President and Chief Counsel, January
2010 - December 2014); officer of Columbia Funds and affiliated funds since 2007.
|
Michael G. Clarke
225 Franklin Street
Boston, MA 02110
Born 1969
|
Chief Financial Officer (Principal Financial Officer) (2009) and Senior Vice President (2019)
|
Vice President, Head of North American Operations, and Co-Head of Global Operations, Columbia Management Investment Advisers, LLC, since June
2019 (previously Vice President – Accounting and Tax, May 2010 – May 2019); senior officer of Columbia Funds and affiliated funds since 2002 (previously Treasurer and Chief Accounting Officer, January 2009
- January 2019 and December 2015 - January 2019, respectively).
|
Joseph Beranek
5890 Ameriprise
Financial Center
Minneapolis, MN 55474
Born 1965
|
Treasurer and Chief Accounting Officer (Principal Accounting Officer) (2019)
|
Vice President — Mutual Fund Accounting and Financial Reporting, Columbia Management Investment Advisers, LLC, since December 2018 and
March 2017, respectively (previously Vice President — Pricing and Corporate Actions, May 2010 - March 2017).
|
Paul B. Goucher
485 Lexington Avenue
New York, NY 10017
Born 1968
|
Senior Vice President (2011) and Assistant Secretary (2008)
|
Senior Vice President and Assistant General Counsel, Ameriprise Financial, Inc. since January 2017 (previously Vice President and Lead Chief
Counsel, November 2008 - January 2017 and January 2013 - January 2017, respectively); Vice President, Chief Legal Officer and Assistant Secretary, Columbia Management Investment Advisers, LLC since March 2015
(previously Vice President and Assistant Secretary, May 2010 – March 2015).
|
Thomas P. McGuire
225 Franklin Street
Boston, MA 02110
Born 1972
|
Senior Vice President and Chief Compliance Officer (2012)
|
Vice President — Asset Management Compliance, Ameriprise Financial, Inc., since May 2010; Chief Compliance Officer, Ameriprise
Certificate Company since September 2010.
|
Colin Moore
225 Franklin Street
Boston, MA 02110
Born 1958
|
Senior Vice President (2010)
|
Executive Vice President and Global Chief Investment Officer, Ameriprise Financial, Inc., since July 2013; Executive Vice President and Global
Chief Investment Officer, Columbia Management Investment Advisers, LLC since July 2013.
|
Ryan C. Larrenaga
225 Franklin Street
Boston, MA 02110
Born 1970
|
Senior Vice President (2017), Chief Legal Officer (2017), and Secretary (2015)
|
Vice President and Chief Counsel, Ameriprise Financial, Inc. since August 2018 (previously Vice President and Group Counsel, August 2011 -
August 2018); officer of Columbia Funds and affiliated funds since 2005.
|
Michael E. DeFao
225 Franklin Street
Boston, MA 02110
Born 1968
|
Vice President (2011) and Assistant Secretary (2010)
|
Vice President and Chief Counsel, Ameriprise Financial, Inc. since May 2010.
|
Lyn Kephart-Strong
5228 Ameriprise
Financial Center
Minneapolis, MN 55474
Born 1960
|
Vice President (2015)
|
President, Columbia Management Investment Services Corp. since October 2014; Vice President & Resolution Officer,
Ameriprise Trust Company since August 2009.
|
38
|
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
Board Consideration
and Approval of Management
Agreement
On June 12, 2019, the Board of
Trustees (the Board) and the Trustees who are not interested persons (as defined in the Investment Company Act of 1940) (the Independent Trustees) of Columbia Funds Series Trust I (the Trust) unanimously approved the
continuation of the Management Agreement (the Management Agreement) with Columbia Management Investment Advisers, LLC (the Investment Manager) with respect to Columbia New York Intermediate Municipal Bond Fund (the
Fund) (formerly, Columbia AMT-Free New York Intermediate Muni Bond Fund), a series of the Trust. As detailed below, the Board’s Advisory Fees and Expenses Committee (the Committee) and the Board met on multiple
occasions to review and discuss, among themselves, with the management team of the Investment Manager and with an independent fee consultant, materials provided by the Investment Manager, the independent fee
consultant and others before determining to approve the continuation of the Management Agreement.
In connection with their
deliberations regarding the continuation of the Management Agreement, the Committee and the Board evaluated materials requested from the Investment Manager regarding the Fund and the Management Agreement, and
discussed these materials with representatives of the Investment Manager at Committee meetings held on March 5, 2019, April 25, 2019 and June 11, 2019 and at Board meetings held on March 6, 2019 and June 12, 2019. In
addition, the Board and its various committees consider matters bearing on the Management Agreement at other meetings throughout the year and in prior years and meet regularly with senior management of the Trust and
the Investment Manager. Through the Board’s Investment Oversight Committees, Trustees also meet with selected portfolio managers of the funds the Trustees oversee and with other investment personnel at various
times throughout the year. The Committee and the Board also consulted with the independent fee consultant, Fund counsel and the Independent Trustees’ independent legal counsel, who advised on various matters
with respect to the Committee’s and the Board’s considerations and otherwise assisted the Committee and the Board in their deliberations. On June 11, 2019, the Committee recommended that the Board approve
the continuation of the Management Agreement. On June 12, 2019, the Board, including the Independent Trustees, voting separately, unanimously approved the continuation of the Management Agreement for the Fund.
The Committee and the Board
considered all information that they, their legal counsel or the Investment Manager believed reasonably necessary to evaluate and to determine whether to recommend for approval or approve the continuation of the
Management Agreement. The information and factors considered by the Committee and the Board in recommending for approval or approving the continuation of the Management Agreement for the Fund included the
following:
•
|
Information on the investment performance of the Fund relative to the performance of a group of mutual funds determined to be comparable to the Fund by an independent third-party data provider, as well as
performance relative to benchmarks;
|
•
|
Information on the Fund’s management fees and total expenses, including information comparing the Fund’s expenses to those of a group of comparable mutual funds, as determined by the independent
third-party data provider;
|
•
|
The Investment Manager’s agreement to contractually limit or cap total operating expenses for the Fund through February 29, 2020 so that total operating expenses (excluding certain fees and expenses, such as
transaction costs and certain other investment related expenses, interest, taxes, acquired fund fees and expenses, and infrequent and/or unusual expenses) would not exceed a specified annual rate, as a percentage of
the Fund’s net assets;
|
•
|
The terms and conditions of the Management Agreement;
|
•
|
The current and proposed terms and conditions of other agreements and arrangements with affiliates of the Investment Manager relating to the operations of the Fund, including agreements with respect to the provision
of distribution, transfer agency and shareholder services to the Fund;
|
•
|
Descriptions of various functions performed by the Investment Manager under the Management Agreement, including portfolio management and portfolio trading practices;
|
•
|
Information regarding the management fees of similarly-managed portfolios of other clients of the Investment Manager, including institutional accounts and collective trusts;
|
•
|
Information regarding the reputation, regulatory history and resources of the Investment Manager, including information regarding senior management, portfolio managers and other personnel;
|
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
39
|
Board Consideration and Approval of
Management
Agreement (continued)
•
|
Information regarding the capabilities of the Investment Manager with respect to compliance monitoring services, including an assessment of the Investment Manager’s compliance system by the Fund’s Chief
Compliance Officer; and
|
•
|
The profitability to the Investment Manager and its affiliates from their relationships with the Fund.
|
Nature, extent and quality of
services provided under the Management Agreement
The Committee and the Board
considered the nature, extent and quality of services provided to the Fund by the Investment Manager and its affiliates under the Management Agreement and under separate agreements for the provision of transfer agency
and shareholder services, and the resources dedicated to the Fund and the other Columbia Funds by the Investment Manager and its affiliates. The Committee and the Board considered, among other things, the Investment
Manager’s ability to attract, motivate and retain highly qualified research, advisory and supervisory investment professionals (including compensation programs for personnel involved in fund management,
reputation and other attributes), the portfolio management services provided by those investment professionals, and the quality of the Investment Manager’s investment research capabilities and trade execution
services. The Committee and the Board also considered the potential benefits to shareholders of investing in a mutual fund that is part of a fund complex offering exposure to a variety of asset classes and investment
disciplines and providing a variety of fund and shareholder services.
The Committee and the Board also
considered the professional experience and qualifications of the senior personnel of the Investment Manager, which included consideration of the Investment Manager’s experience with funds using an investment
strategy similar to that used by the Investment Manager for the Fund. The Committee and the Board noted the compliance programs of and the compliance-related resources provided to the Fund by the Investment Manager
and its affiliates and the resources dedicated by the Investment Manager and its affiliates to risk management, and considered the Investment Manager’s ability to provide administrative services to the Fund and
coordinate the activities of the Fund’s other service providers. After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the
nature, extent and quality of the services provided to the Fund under the Management Agreement supported the continuation of the Management Agreement.
Investment performance
The Committee and the Board
reviewed information about the performance of the Fund over various time periods, including performance information relative to benchmarks, information that compared the performance of the Fund to the performance of a
group of comparable mutual funds as determined by the independent third-party data provider, and information and analysis provided by the independent fee consultant. The Committee and the Board also reviewed a
description of the third party’s methodology for identifying the Fund’s peer groups for purposes of performance and expense comparisons.
The Committee and the Board noted
that, through December 31, 2018, the Fund’s performance was in the thirty-ninth, thirty-ninth and forty-seventh percentile (where the best performance would be in the first percentile) of its category selected
by the independent third-party data provider for the purposes of performance comparisons for the one-, three- and five-year periods, respectively.
The Committee and the Board also
considered the Investment Manager’s performance and reputation generally, the Investment Manager’s historical responsiveness to Board concerns about performance, and the Investment Manager’s
willingness to take steps intended to improve performance. After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the performance of the
Fund and the Investment Manager was sufficient, in light of other considerations, to support the continuation of the Management Agreement.
Investment management fee rates
and other expenses
The Committee and the Board
considered the management fees charged to the Fund under the Management Agreement as well as the total expenses incurred by the Fund. In assessing the reasonableness of the fees under the Management Agreement, the
Committee and the Board considered, among other information, the Fund’s total expense ratio as a percentage of average daily net assets. The Committee and the Board considered data provided by the independent
third-party data provider and the independent fee consultant. The Committee and the Board noted that, as of December 31, 2018, the Fund’s actual management fee and net total expense ratio were ranked in the
first and second quintiles,
40
|
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
Board Consideration and Approval of
Management
Agreement (continued)
respectively, (where the lowest fees and expenses
would be in the first quintile) against the Fund’s expense universe as determined by the independent third-party data provider for purposes of expense comparison. The Committee and the Board also took into
account the fee waiver and expense limitation arrangements agreed to by the Investment Manager, as noted above.
The Committee and the Board also
received and considered information about the management fees charged by the Investment Manager to institutional accounts. In considering the fees charged to those accounts, the Committee and the Board took into
account, among other things, the Investment Manager’s representations about the differences between managing mutual funds as compared to other types of accounts, including differences in the services provided,
differences in the risk profile of such business for the Investment Manager and the additional resources required to manage mutual funds effectively. The Committee and the Board also received and considered
information about the fees charged by the Investment Manager for sub-advisory services it provides to comparable unaffiliated funds. In evaluating the Fund’s management fees, the Committee and the Board also
took into account the demands, complexity and quality of the investment management of the Fund.
After reviewing these and related
factors, the Committee and the Board concluded, within the context of their overall conclusions, that the management fee rates and expenses of the Fund, in light of other considerations, supported the continuation of
the Management Agreement.
Costs of services provided and
profitability
The Committee and the Board also
took note of the costs the Investment Manager and its affiliates incur in connection with the services provided and the profitability to the Investment Manager and its affiliates from their relationships with the
Fund, and the efforts undertaken by the Investment Manager and its affiliates to manage efficiently their costs to provide such services.
The Committee and the Board also
considered the compensation directly or indirectly received by the Investment Manager’s affiliates in connection with their relationships with the Fund. The Committee and the Board reviewed information provided
by management as to the profitability to the Investment Manager and its affiliates of their relationships with the Fund, information about the allocation of expenses used to calculate profitability, and comparisons of
profitability levels realized in 2018 to profitability levels realized in 2017. When reviewing profitability, the Committee and the Board also considered court cases in which adviser profitability was an issue in
whole or in part, the performance of similarly managed funds, the performance of the Fund, and the expense ratio of the Fund. In addition, the Committee and the Board considered information provided by the Investment
Manager regarding the Investment Manager’s financial condition and comparing its profitability to that of other asset management firms that are, or are subsidiaries of, publicly traded companies. In this regard,
the Committee and the Board also considered data provided by the independent fee consultant.
After reviewing these and related
factors, the Committee and the Board concluded, within the context of their overall conclusions, that the costs of services provided and the profitability to the Investment Manager and its affiliates from their
relationships with the Fund supported the continuation of the Management Agreement.
Economies of scale
The Committee and the Board
considered the potential existence of economies of scale in the provision by the Investment Manager of services to the Fund, to groups of related funds, and to the Investment Manager’s investment advisory
clients as a whole, and whether those economies of scale were shared with the Fund through breakpoints in investment management fees or other means, such as expense limitation arrangements and additional investments
by the Investment Manager in investment, trading, compliance and other resources. The Committee and the Board noted that the management fee schedules for the Fund contained breakpoints that would reduce the fee rate
on assets above specified threshold levels.
In considering these matters, the
Committee and the Board also considered the costs of the services provided and the profitability to the Investment Manager and its affiliates from their relationships with the Fund, as noted above. After reviewing
these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the extent to which any economies of scale were expected to be shared with the Fund supported the
continuation of the Management Agreement.
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
41
|
Board Consideration and Approval of
Management
Agreement (continued)
Other benefits to the Investment Manager
The Committee and the Board
received and considered information regarding “fall-out” or ancillary benefits received by the Investment Manager and its affiliates as a result of their relationships with the Fund, such as the engagement
of the Investment Manager’s affiliates to provide distribution, transfer agency and shareholder services to the Fund. In this regard, among other matters, the Committee and the Board considered that the
Fund’s distributor retains a portion of the distribution fees from the Fund and receives a portion of the sales charges on sales or redemptions of certain classes of shares of the Fund. The Committee and the
Board also considered the benefits of research made available to the Investment Manager by reason of brokerage commissions generated by the Fund’s securities transactions, and reviewed information about the
Investment Manager’s practices with respect to considering brokerage and research services when allocating portfolio transactions. In this connection, the Board also noted that the amount of research made
available to the Investment Manager by reason of brokerage commissions had been declining over time, and may decline further. The Committee and the Board recognized that the Investment Manager’s profitability
would be somewhat lower without these benefits.
Conclusion
The Committee and the Board
reviewed all of the above considerations in reaching their decisions to recommend or approve the continuation of the Management Agreement. In their deliberations, the Trustees did not identify any particular
information that was all-important or controlling, and individual Trustees may have attributed different weights to the various factors. Based on their evaluation of all factors that they deemed to be material,
including those factors described above, and assisted by the advice of independent legal counsel, the Board, including the Independent Trustees, voting separately, unanimously approved the continuation of the
Management Agreement.
42
|
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2019
|
[THIS PAGE INTENTIONALLY LEFT
BLANK]
Columbia New York Intermediate Municipal Bond
Fund
P.O. Box 219104
Kansas City, MO 64121-9104
Please read and consider the
investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus and summary prospectus, which contains this and other important information about the Fund, go to
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments
(Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2019 Columbia Management Investment
Advisers, LLC.
columbiathreadneedleus.com/investor/
Annual Report
October 31, 2019
Columbia
Connecticut Intermediate Municipal Bond Fund
Beginning on January 1, 2021, as
permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports like this one will no longer be sent by mail, unless you
specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (columbiathreadneedleus.com/investor/), and each time a report is posted you will be notified
by mail and provided with a website address to access the report.
If you have already elected to
receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically
at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, for Fund shares held directly with the Fund, by calling 800.345.6611 or by enrolling in “eDelivery” by logging
into your account at columbiathreadneedleus.com/investor/.
You may elect to receive all future
reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue receiving paper copies of your shareholder reports. If you
invest directly with the Fund, you can call 800.345.6611 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive paper reports will apply to all Columbia
Funds held in your account if you invest through a financial intermediary or all Columbia Funds held with the fund complex if you invest directly with the Fund.
Not FDIC Insured • No bank
guarantee • May lose value
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3
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5
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7
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8
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13
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14
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18
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22
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31
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35
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Columbia Connecticut Intermediate
Municipal Bond Fund (the Fund) mails one shareholder report to each shareholder address, unless such shareholder elected to receive shareholder reports from the Fund electronically. If you would like more than one
report, please call shareholder services at 800.345.6611 and additional reports will be sent to you.
Proxy voting policies and
procedures
The policy of the Board of Trustees
is to vote the proxies of the companies in which the Fund holds investments consistent with the procedures as stated in the Statement of Additional Information (SAI). You may obtain a copy of the SAI without charge by
calling 800.345.6611; contacting your financial intermediary; visiting columbiathreadneedleus.com/investor/; or searching the website of the Securities and Exchange Commission (SEC) at sec.gov. Information regarding
how the Fund voted proxies relating to portfolio securities is filed with the SEC by August 31st for the most recent 12-month period ending June 30th of that year, and is available without charge by visiting
columbiathreadneedleus.com/investor/, or searching the website of the SEC at sec.gov.
Quarterly schedule of
investments
The Fund files a complete schedule
of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT, and for reporting periods ended prior to March 31, 2019, on Form N-Q. The Fund’s Form N-Q and 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-Q or Form N-PORT, can also be obtained without charge, upon request, by calling
800.345.6611.
Additional Fund information
For more information about the
Fund, please visit columbiathreadneedleus.com/investor/ or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 7 p.m. Eastern time.
Fund investment manager
Columbia Management Investment Advisers, LLC (the
Investment Manager)
225 Franklin Street
Boston, MA 02110
Fund distributor
Columbia Management Investment Distributors,
Inc.
225 Franklin Street
Boston, MA 02110
Fund transfer agent
Columbia Management Investment Services Corp.
P.O. Box 219104
Kansas City, MO 64121-9104
Columbia Connecticut Intermediate Municipal Bond
Fund | Annual Report 2019
Investment objective
The Fund
seeks as high a level of current interest income exempt from federal income tax and, to the extent possible, from Connecticut individual income tax, as is consistent with relative stability of principal.
Portfolio management
Paul Fuchs, CFA
Lead Portfolio Manager
Managed Fund since 2016
Anders Myhran, CFA
Portfolio Manager
Managed Fund since May 2019
Deborah Vargo
Portfolio Manager
Managed Fund since 2017
Average annual total returns (%) (for the period ended October 31, 2019)
|
|
|
Inception
|
1 Year
|
5 Years
|
10 Years
|
Class A
|
Excluding sales charges
|
11/18/02
|
7.95
|
2.21
|
2.96
|
|
Including sales charges
|
|
4.76
|
1.59
|
2.65
|
Advisor Class*
|
03/19/13
|
8.23
|
2.47
|
3.22
|
Class C
|
Excluding sales charges
|
11/18/02
|
7.47
|
1.75
|
2.52
|
|
Including sales charges
|
|
6.47
|
1.75
|
2.52
|
Institutional Class
|
08/01/94
|
8.22
|
2.46
|
3.22
|
Institutional 3 Class*
|
03/01/17
|
8.32
|
2.52
|
3.24
|
Class V
|
Excluding sales charges
|
06/26/00
|
8.06
|
2.31
|
3.06
|
|
Including sales charges
|
|
2.89
|
1.32
|
2.56
|
Bloomberg Barclays 3-15 Year Blend Municipal Bond Index
|
|
8.64
|
3.17
|
4.00
|
Returns for Class A shares are shown
with and without the maximum initial sales charge of 3.00%. Returns for Class C shares are shown with and without the 1.00% contingent deferred sales charge for the first year only. Returns for Class V shares are
shown with and without the maximum initial sales charge of 4.75%. The Fund’s other share classes are not subject to sales charges and have limited eligibility. Please see the Fund’s prospectus for details.
Performance for different share classes will vary based on differences in sales charges and fees associated with each share class. All results shown assume reinvestment of distributions during the period. Returns do
not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results reflect the effect of any fee waivers or reimbursements of Fund expenses by
Columbia Management Investment Advisers, LLC and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower.
The performance information shown
represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than
their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by contacting your financial
intermediary, visiting columbiathreadneedleus.com/investor/ or calling 800.345.6611.
*
|
The returns shown for periods prior to the share class inception date (including returns for the Life of the Fund, if shown, which are since Fund inception) include the returns of the Fund’s oldest share
class. These returns are adjusted to reflect any higher class-related operating expenses of the newer share classes, as applicable. Please visit
columbiathreadneedleus.com/investor/investment-products/mutual-funds/appended-performance for more information.
|
The Bloomberg Barclays 3–15
Year Blend Municipal Bond Index is an unmanaged index that tracks the performance of municipal bonds issued after December 31, 1990, with remaining maturities between 2 and 17 years and at least $7 million in
principal amount outstanding.
Indices are not available for
investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes or other expenses of investing. Securities in the Fund may not match those in an index.
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
3
|
Fund at a Glance (continued)
Performance of a hypothetical $10,000 investment (October 31, 2009 — October 31, 2019)
The chart above shows the change in
value of a hypothetical $10,000 investment in Class A shares of Columbia Connecticut Intermediate Municipal Bond Fund during the stated time period, and does not reflect the deduction of taxes that a shareholder may
pay on Fund distributions or on the redemption of Fund shares.
Quality breakdown (%) (at October 31, 2019)
|
AAA rating
|
12.3
|
AA rating
|
30.2
|
A rating
|
48.2
|
BBB rating
|
3.4
|
BB rating
|
1.7
|
Not rated
|
4.2
|
Total
|
100.0
|
Percentages indicated are based
upon total fixed income investments.
Bond ratings apply to the underlying
holdings of the Fund and not the Fund itself and are divided into categories ranging from highest to lowest credit quality, determined by using the middle rating of Moody’s, S&P and Fitch, after dropping the
highest and lowest available ratings. When ratings are available from only two rating agencies, the lower rating is used. When a rating is available from only one rating agency, that rating is used. When a bond is not
rated by any rating agency, it is designated as “Not rated.” Credit quality ratings assigned by a rating agency are subjective opinions, not statements of fact, and are subject to change, including daily.
The ratings assigned by credit rating agencies are but one of the considerations that the Investment Manager and/or Fund’s subadviser incorporates into its credit analysis process, along with such other
issuer-specific factors as cash flows, capital structure and leverage ratios, ability to de-leverage (repay) through free cash flow, quality of management, market positioning and access to capital, as well as such
security-specific factors as the terms of the security (e.g., interest rate and time to maturity) and the amount and type of any collateral.
4
|
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
Manager Discussion of Fund Performance
During the 12-month period that
ended October 31, 2019, the Fund’s Class A shares returned 7.95% excluding sales charges. Institutional Class shares of the Fund returned 8.22%. By comparison, the Fund’s benchmark, the Bloomberg Barclays
3-15 Year Blend Municipal Bond Index, which is national in scope, returned 8.64%. The Fund’s shorter duration (sensitivity to interest rates) relative to its benchmark during the period led to the Fund’s
underperformance of the benchmark as yields fell.
Market overview
Municipal bonds generated a
robust return over the 12 months that ended October 31, 2019. After experiencing poor performance throughout most of 2018, municipals began to rebound in early November 2018 thanks to the combination of slowing global
growth, volatility in higher-risk assets, and expectations that the U.S. Federal Reserve (Fed) would adopt a more accommodative stance. In addition, various geopolitical factors — including the U.S.-China trade
dispute, Brexit negotiations, and the U.S. government shutdown — fueled a “flight to quality” into bonds.
The rally persisted into the New
Year, leading to the largest first-quarter gain for the tax-exempt market since 2014. The quarter was also the sixth-best for municipals in the past 30 years, thanks in part to the backdrop of slow global growth and
the increasingly accommodative policies of the world’s major central banks. Supply-and-demand factors were highly favorable, as well. Municipal bond mutual funds experienced record inflows, fueled by strong
demand resulting from the cap on state and local tax deductions in the Tax Cuts and Jobs Act of 2017. As of year-to-date September 30, 2019, municipal bond funds had taken in over $70 billion year-to-date. At the same
time, new-issue supply was limited. Trends in the U.S. Treasury market were also supportive, as yields fell in anticipation of Fed rate cuts. Together, these developments resulted in positive municipal market
performance during the spring and summer.
In early September 2019, however,
the typical seasonal increase in supply — which was exacerbated by historically low costs for issuers — caused the rally to stall. Municipals suffered their first month of negative returns in 2019 as a
result. The market continued to trade in an uneven fashion through the end of October 2019, as the Fed indicated that additional rate cuts would be dependent on incoming economic data.
For the full year, lower quality
issues outpaced their higher rated counterparts as investors displayed a consistent willingness to move out the risk spectrum in search of higher yields. Long-term bonds strongly outperformed short-dated securities,
reflecting the trend in the U.S. Treasury market.
Connecticut municipal bonds
outperformed
Connecticut’s tax-exempt
market finished slightly ahead of the national indexes in the 12-month period. Although the state has a lower duration than the broader national market — a negative when prices are rising — its lower
average credit quality was tailwind for relative performance. (Duration is a measure of interest rate sensitivity.)
The state’s economy has
performed adequately, with employment climbing to its highest level since the 2008-2009 recession but remaining below its pre-recession peak. Declining population, driven by outmigration and aging demographic, remains
a long-term challenge.
On the positive side, Connecticut
bolstered its rainy day fund over the past three fiscal years and is therefore in a better position to weather a recession. However, its relatively high reliance on capital gains and income taxes from high-wage
earners exposes the state to downdrafts in financial markets. Furthermore, the high fixed costs associated with a heavy debt load and large pension costs reduces its spending flexibility. This has a potential
carry-over effect to the rest of the economy to the extent that it limits government payroll growth.
Contributors and detractors
The Fund lagged both the
Connecticut market and the broader national indexes. The Fund was modestly short in duration throughout the year, meaning it had lower interest-rate sensitivity than the benchmark. This acted as a small drag on
results given that yields fell significantly (as prices rose). A cash position of about 3%, while limited overall, nonetheless weighed on relative performance at a time of robust returns for the tax-exempt market. The
Fund’s overweight in bonds maturing in two
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
5
|
Manager Discussion of Fund Performance (continued)
years or less, including pre-refunded issues, hurt
performance as the relatively low interest-rate sensitivity of this area translated to below-average total returns. A zero weighting in the transportation sector, which outperformed, was an additional hindrance.
On the positive side, an overweight
to longer term bonds (generally those with maturities of 15 years and above) contributed to performance. The Fund also benefited from our effective security selection in the longer dated area of the market. In
particular, positions in state general obligations bonds (GOs), local GOs (including Hartford County), and certain education issues (such as the University of New Haven and the University of Connecticut) contributed
to performance.
Fund positioning
Given the consistently strong
performance for municipals over the past 12 months, our primary activity centered around managing cash to keep the portfolio as close to fully invested as possible. A byproduct of the highly callable nature of
tax-exempt issues is that as yields fall, more bonds trade to their call dates and their effective durations decline. (A bond is called when it redeemed by the issuer before its scheduled maturity date). Accordingly,
we devoted a great deal of time to managing the Fund’s duration, both on an absolute basis and relative to the benchmark. Although duration declined over the course of the year, we were able to stay fairly close
to the benchmark for the majority of the period.
We remained disciplined with
respect to credit quality rather than moving into lower rated securities in an effort to chase yield. As a result, the Fund’s overall credit quality was virtually unchanged on the year. The portfolio remains
well diversified across sectors. We slightly decreased the Fund’s allocations to the water & sewer and state appropriation sectors, while adding to both single-family housing and refunded bonds. In addition,
we made a modest increase to the Fund’s weighting in bonds with coupons below 4% to capitalize on their greater interest-rate sensitivity and higher yields.
The Fund’s universe of
allowable investments expanded to include bonds subject to the Alternative Minimum Tax (AMT). We made this shift after tax reform drastically reduced the number of taxpayers subject to the AMT. This change gives us a
wider opportunity to invest in bonds with higher income. We capitalized on this change by adding positions in the AMT bonds of the State Housing Authority.
The major stock indexes stood near
all-time highs at the close of the period, but fixed-income investors were displaying some caution with the yield on the 10-year note having risen from its September low. The Fed appeared to have concluded its
mini-easing cycle and was indicating it was unlikely to enact further cuts until it sees a meaningful uptick in inflation. In addition, market participants were struggling to assess the outlook for global growth and
tensions in Washington, as well as Brexit and the U.S.-China trade conflict. For our part, we remain on the lookout for the chance to use any volatility associated with these issues as a potential buying
opportunity.
Fixed-income securities present
issuer default risk. The Fund invests substantially in municipal securities and will be affected by tax, legislative, regulatory, demographic or political changes, as well as changes impacting a state’s financial, economic or other
conditions. A relatively small number of tax-exempt issuers may necessitate the Fund investing more heavily in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly.
The value of the Fund’s portfolio may be more volatile than a more geographically diversified fund. Prepayment and extension risk exists because the timing of payments on a loan, bond or other investment may accelerate when interest rates fall or decelerate when interest rates rise
which may reduce investment opportunities and potential returns. A rise in interest rates may result in a price decline of fixed-income instruments held by the fund, negatively impacting its performance and NAV. Falling rates may result in the Fund investing
in lower yielding debt instruments, lowering the Fund’s income and yield. These risks may be heightened for longer maturity and duration securities. Non-investment-grade (high-yield or junk) securities present greater price volatility and more risk to principal and income than higher rated securities. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. Federal and state tax rules apply to capital gain distributions and any gains or losses on sales. Income may be subject to state or local taxes. Liquidity risk is associated with the difficulty of selling underlying investments at a desirable time or price. See the Fund’s prospectus for more information on these and other
risks.
The views expressed in this report
reflect the current views of the respective parties. These views are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict, so actual outcomes and
results may differ significantly from the views expressed. These views are subject to change at any time based upon economic, market or other conditions and the respective parties disclaim any responsibility to update
such views. These views may not be relied on as investment advice and, because investment decisions for a Columbia fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf
of any particular Columbia fund. References to specific securities should not be construed as a recommendation or investment advice.
6
|
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
Understanding Your Fund’s
Expenses
(Unaudited)
As an investor, you incur two types
of costs. There are shareholder transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing fund costs, which generally include management fees,
distribution and/or service fees, and other fund expenses. The following information is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to help you compare these costs with
the ongoing costs of investing in other mutual funds.
Analyzing your Fund’s
expenses
To illustrate these ongoing
costs, we have provided examples and calculated the expenses paid by investors in each share class of the Fund during the period. The actual and hypothetical information in the table is based on an initial investment
of $1,000 at the beginning of the period indicated and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the
“Actual” column is calculated using the Fund’s actual operating expenses and total return for the period. You may use the Actual information, together with the amount invested, to estimate the
expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the results by the expenses paid during the period under
the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the
Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or
the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are
required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are
meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in
comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
May 1, 2019 — October 31, 2019
|
|
Account value at the
beginning of the
period ($)
|
Account value at the
end of the
period ($)
|
Expenses paid during
the period ($)
|
Fund’s annualized
expense ratio (%)
|
|
Actual
|
Hypothetical
|
Actual
|
Hypothetical
|
Actual
|
Hypothetical
|
Actual
|
Class A
|
1,000.00
|
1,000.00
|
1,031.00
|
1,021.17
|
4.10
|
4.08
|
0.80
|
Advisor Class
|
1,000.00
|
1,000.00
|
1,033.30
|
1,022.43
|
2.82
|
2.80
|
0.55
|
Class C
|
1,000.00
|
1,000.00
|
1,028.60
|
1,018.90
|
6.39
|
6.36
|
1.25
|
Institutional Class
|
1,000.00
|
1,000.00
|
1,033.20
|
1,022.43
|
2.82
|
2.80
|
0.55
|
Institutional 3 Class
|
1,000.00
|
1,000.00
|
1,032.70
|
1,022.94
|
2.31
|
2.29
|
0.45
|
Class V
|
1,000.00
|
1,000.00
|
1,032.50
|
1,021.68
|
3.59
|
3.57
|
0.70
|
Expenses paid during the period
are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period and then multiplied by the number of days in the Fund’s most recent fiscal
half year and divided by 365.
Expenses do not include fees and
expenses incurred indirectly by the Fund from its investment in underlying funds, including affiliated and non-affiliated pooled investment vehicles, such as mutual funds and exchange-traded funds.
Had Columbia Management Investment
Advisers, LLC and/or certain of its affiliates not waived/reimbursed certain fees and expenses, account value at the end of the period would have been reduced.
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
7
|
Portfolio of Investments
October 31, 2019
(Percentages represent value of
investments compared to net assets)
Investments in securities
Floating Rate Notes 2.4%
|
Issue Description
|
Effective
Yield
|
|
Principal
Amount ($)
|
Value ($)
|
Variable Rate Demand Notes 2.4%
|
City of Minneapolis/St. Paul Housing & Redevelopment Authority(a),(b)
|
Revenue Bonds
|
Allina Health Systems
|
Series 2009B-2 (JPMorgan Chase Bank)
|
11/15/2035
|
1.380%
|
|
600,000
|
600,000
|
New York City Water & Sewer System(a),(b)
|
Revenue Bonds
|
2nd General Resolution
|
Series 2016BB (State Street Bank and Trust Co.)
|
06/15/2049
|
1.310%
|
|
300,000
|
300,000
|
Triborough Bridge & Tunnel Authority(a),(b)
|
Refunding Revenue Bonds
|
General
|
Subordinated Series 2018-B-3 (State Street Bank and Trust Co.)
|
01/01/2032
|
1.290%
|
|
1,500,000
|
1,500,000
|
Total
|
2,400,000
|
Total Floating Rate Notes
(Cost $2,400,000)
|
2,400,000
|
|
Municipal Bonds 93.9%
|
Issue Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value ($)
|
Higher Education 7.3%
|
Connecticut State Health & Educational Facilities Authority
|
Refunding Revenue Bonds
|
Fairfield University
|
Series 2017R
|
07/01/2034
|
4.000%
|
|
1,000,000
|
1,117,520
|
University of New Haven
|
Series 2018
|
07/01/2033
|
5.000%
|
|
500,000
|
593,165
|
07/01/2034
|
5.000%
|
|
500,000
|
591,370
|
Connecticut State Health & Educational Facility Authority
|
Refunding Revenue Bonds
|
Quinnipiac University
|
Series 2016M
|
07/01/2029
|
5.000%
|
|
1,000,000
|
1,194,220
|
Sacred Heart University Issue
|
Series 2017
|
07/01/2033
|
5.000%
|
|
300,000
|
361,854
|
Revenue Bonds
|
Trinity College
|
Series 1998F (NPFGC)
|
07/01/2021
|
5.500%
|
|
185,000
|
194,230
|
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
University of Connecticut
|
Revenue Bonds
|
Series 2018A
|
11/15/2035
|
5.000%
|
|
2,700,000
|
3,331,530
|
Total
|
7,383,889
|
Hospital 10.4%
|
Connecticut State Health & Educational Facilities Authority
|
Refunding Revenue Bonds
|
Nuvance Health Issue
|
Series 2019A
|
07/01/2033
|
5.000%
|
|
400,000
|
492,892
|
Connecticut State Health & Educational Facility Authority
|
Revenue Bonds
|
Bridgeport Hospital
|
Series 2012D
|
07/01/2022
|
5.000%
|
|
1,000,000
|
1,099,560
|
Hartford Healthcare
|
Series 2014E
|
07/01/2034
|
5.000%
|
|
2,360,000
|
2,660,334
|
Middlesex Hospital
|
Series 2011N
|
07/01/2021
|
5.000%
|
|
1,000,000
|
1,059,470
|
Trinity Health Corp.
|
Series 2016
|
12/01/2032
|
5.000%
|
|
2,000,000
|
2,392,820
|
Yale-New Haven Health
|
Series 2014A
|
07/01/2031
|
5.000%
|
|
2,500,000
|
2,885,350
|
Total
|
10,590,426
|
Investor Owned 5.2%
|
Connecticut State Development Authority
|
Refunding Revenue Bonds
|
Connecticut Light & Power Co. Project
|
Series 2011
|
09/01/2028
|
4.375%
|
|
5,000,000
|
5,244,250
|
Joint Power Authority 1.1%
|
Connecticut Municipal Electric Energy Cooperative
|
Revenue Bonds
|
Series 2012A
|
01/01/2027
|
5.000%
|
|
1,000,000
|
1,075,800
|
Local General Obligation 20.9%
|
City of Bridgeport
|
Unlimited General Obligation Bonds
|
Series 2014A (AGM)
|
07/01/2031
|
5.000%
|
|
1,350,000
|
1,534,639
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
8
|
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Series 2019-A BAM
|
BUILD AMERICA MUTUAL ASSURANCE CO
|
02/01/2036
|
5.000%
|
|
1,000,000
|
1,206,450
|
City of Hartford
|
Unlimited General Obligation Bonds
|
Series 2011A
|
04/01/2022
|
5.250%
|
|
1,325,000
|
1,397,650
|
City of Middletown
|
Unlimited General Obligation Bonds
|
Series 2015
|
04/01/2026
|
5.000%
|
|
1,000,000
|
1,236,170
|
City of Milford
|
Unlimited General Obligation Refunding Bonds
|
Series 2017B
|
11/01/2030
|
4.000%
|
|
450,000
|
510,948
|
City of New Britain
|
Unlimited General Obligation Bonds
|
Series 2018B (AGM)
|
ASSURED GUARANTY MUNICIPAL CORP
|
09/01/2036
|
5.250%
|
|
720,000
|
886,392
|
City of New Haven
|
Unlimited General Obligation Bonds
|
Series 2015 (AGM)
|
09/01/2027
|
5.000%
|
|
1,200,000
|
1,395,984
|
Unlimited General Obligation Refunding Bonds
|
Series 2015B (BAM)
|
08/15/2027
|
5.000%
|
|
750,000
|
871,717
|
City of Norwalk
|
Unlimited General Obligation Refunding Bonds
|
Series 2017B
|
07/01/2026
|
4.000%
|
|
750,000
|
862,665
|
City of Waterbury
|
Unlimited General Obligation Bonds
|
Lot A
|
Series 2015 (BAM)
|
08/01/2031
|
5.000%
|
|
500,000
|
589,595
|
08/01/2032
|
5.000%
|
|
500,000
|
588,290
|
Metropolitan District (The)
|
Unlimited General Obligation Bonds
|
Series 2018
|
07/15/2034
|
5.000%
|
|
500,000
|
617,050
|
07/15/2035
|
5.000%
|
|
1,000,000
|
1,230,740
|
Series 2019A
|
07/15/2033
|
5.000%
|
|
1,000,000
|
1,261,700
|
Town of Fairfield
|
Unlimited General Obligation Refunding Bonds
|
Series 2008
|
01/01/2020
|
5.000%
|
|
1,000,000
|
1,006,260
|
01/01/2022
|
5.000%
|
|
500,000
|
542,135
|
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Town of Guilford
|
Unlimited General Obligation Refunding Bonds
|
Series 2016A
|
08/15/2029
|
4.000%
|
|
450,000
|
515,039
|
Town of Hamden
|
Unlimited General Obligation Refunding Bonds
|
Series 2018A (BAM)
|
08/15/2030
|
5.000%
|
|
1,000,000
|
1,215,730
|
Town of North Haven
|
Unlimited General Obligation Bonds
|
Series 2007
|
07/15/2024
|
4.750%
|
|
1,150,000
|
1,328,583
|
07/15/2025
|
4.750%
|
|
1,150,000
|
1,359,783
|
Town of Stratford
|
Unlimited General Obligation Refunding Bonds
|
Series 2014
|
12/15/2032
|
5.000%
|
|
600,000
|
660,408
|
Town of Trumbull
|
Unlimited General Obligation Refunding Bonds
|
Series 2017B
|
09/01/2030
|
4.000%
|
|
350,000
|
401,944
|
Total
|
21,219,872
|
Multi-Family 2.1%
|
Bridgeport Housing Authority
|
Revenue Bonds
|
Custodial Receipts Energy Performance
|
Series 2009
|
06/01/2022
|
5.000%
|
|
1,035,000
|
1,035,000
|
06/01/2023
|
5.000%
|
|
1,085,000
|
1,085,000
|
Total
|
2,120,000
|
Pool / Bond Bank 2.5%
|
State of Connecticut Clean Water Fund - State Revolving Fund
|
Revenue Bonds
|
Green Bond
|
Series 2017A
|
05/01/2034
|
5.000%
|
|
1,500,000
|
1,840,830
|
Green Bonds
|
Series 2019A
|
02/01/2035
|
4.000%
|
|
565,000
|
653,858
|
Total
|
2,494,688
|
Prep School 6.5%
|
Connecticut State Health & Educational Facilities Authority
|
Refunding Revenue Bonds
|
Taft School Issue
|
Series 2018-K
|
07/01/2035
|
4.000%
|
|
1,115,000
|
1,269,260
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
9
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
Connecticut State Health & Educational Facility Authority
|
Revenue Bonds
|
Greenwich Academy
|
Series 2007E (AGM)
|
03/01/2026
|
5.250%
|
|
2,770,000
|
3,183,395
|
Loomis Chaffe School
|
Series 2005F (AMBAC)
|
07/01/2027
|
5.250%
|
|
1,670,000
|
2,108,442
|
Total
|
6,561,097
|
Refunded / Escrowed 14.1%
|
City of Hartford
|
Prerefunded 04/01/21 Unlimited General Obligation Bonds
|
Series 2011A
|
04/01/2023
|
5.250%
|
|
1,325,000
|
1,399,319
|
04/01/2024
|
5.250%
|
|
1,325,000
|
1,399,319
|
City of New Britain
|
Unlimited General Obligation Refunding Bonds
|
Series 2016A Escrowed to Maturity (BAM)
|
03/01/2025
|
5.000%
|
|
10,000
|
11,892
|
Connecticut State Health & Educational Facilities Authority
|
Prerefunded 11/15/20 Revenue Bonds
|
Health System Catholic East
|
Series 2010
|
11/15/2029
|
4.750%
|
|
2,920,000
|
3,025,529
|
Connecticut State Health & Educational Facility Authority
|
Prerefunded 07/01/21 Revenue Bonds
|
Lawrence & Memorial Hospital
|
Series 2011S
|
07/01/2031
|
5.000%
|
|
2,000,000
|
2,122,000
|
Revenue Bonds
|
Sacred Heart University
|
Series 2011G Escrowed to Maturity
|
07/01/2020
|
5.000%
|
|
690,000
|
707,636
|
Harbor Point Infrastructure Improvement District
|
Prerefunded 04/01/20 Tax Allocation Bonds
|
Harbor Point Project
|
Series 2010A
|
04/01/2022
|
7.000%
|
|
1,382,000
|
1,414,242
|
Puerto Rico Highway & Transportation Authority(c)
|
Refunding Revenue Bonds
|
Series 2005BB Escrowed to Maturity (AGM)
|
07/01/2022
|
5.250%
|
|
895,000
|
987,803
|
South Central Connecticut Regional Water Authority
|
Prerefunded 08/01/22 Revenue Bonds
|
27th Series 2012
|
08/01/2029
|
5.000%
|
|
2,945,000
|
3,248,423
|
Total
|
14,316,163
|
Municipal Bonds (continued)
|
Issue Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value ($)
|
Retirement Communities 2.5%
|
Connecticut State Health & Educational Facilities Authority
|
Revenue Bonds
|
Covenant Home, Inc.
|
12/01/2031
|
5.000%
|
|
750,000
|
893,017
|
Mary Wade Home Issue
|
Series 2019A-1
|
10/01/2039
|
5.000%
|
|
500,000
|
549,445
|
Connecticut State Health & Educational Facility Authority(d)
|
Revenue Bonds
|
Church Home of Hartford, Inc.
|
Series 2016
|
09/01/2046
|
5.000%
|
|
1,000,000
|
1,088,420
|
Total
|
2,530,882
|
Single Family 4.4%
|
Connecticut Housing Finance Authority(e)
|
Refunding Revenue Bonds
|
Home Mortgage
|
Series 2019D-2 AMT
|
05/15/2033
|
3.000%
|
|
1,000,000
|
1,017,430
|
Connecticut Housing Finance Authority
|
Refunding Revenue Bonds
|
Series 2019B1
|
11/15/2033
|
3.000%
|
|
1,000,000
|
1,048,850
|
Subordinated Series 2017D-1
|
11/15/2032
|
3.200%
|
|
1,000,000
|
1,043,840
|
Subordinated Series 2018C-1
|
11/15/2038
|
3.625%
|
|
1,250,000
|
1,321,837
|
Total
|
4,431,957
|
Special Non Property Tax 5.1%
|
State of Connecticut Special Tax
|
Revenue Bonds
|
Series 2018B
|
10/01/2035
|
5.000%
|
|
1,000,000
|
1,225,990
|
Transportation Infrastructure
|
Series 2009A
|
12/01/2019
|
4.500%
|
|
1,000,000
|
1,002,475
|
Series 2014A
|
09/01/2025
|
5.000%
|
|
2,500,000
|
2,913,350
|
Total
|
5,141,815
|
State Appropriated 1.7%
|
University of Connecticut
|
Revenue Bonds
|
Series 2015A
|
02/15/2029
|
5.000%
|
|
1,500,000
|
1,741,920
|
The accompanying Notes to Financial
Statements are an integral part of this statement.
10
|
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
Portfolio of Investments (continued)
October 31, 2019
Municipal Bonds (continued)
|
Issue Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value ($)
|
State General Obligation 3.6%
|
State of Connecticut
|
Unlimited General Obligation Bonds
|
Series 2018A
|
04/15/2031
|
5.000%
|
|
1,000,000
|
1,232,240
|
Series 2018-E
|
09/15/2033
|
5.000%
|
|
1,000,000
|
1,234,310
|
Series 2019A
|
04/15/2036
|
5.000%
|
|
1,000,000
|
1,235,450
|
Total
|
3,702,000
|
Water & Sewer 6.5%
|
Greater New Haven Water Pollution Control Authority
|
Refunding Revenue Bonds
|
Series 2014B
|
08/15/2031
|
5.000%
|
|
1,000,000
|
1,151,320
|
Series 2016A
|
11/15/2029
|
4.000%
|
|
500,000
|
569,160
|
11/15/2030
|
4.000%
|
|
400,000
|
453,004
|
11/15/2031
|
4.000%
|
|
100,000
|
112,698
|
11/15/2032
|
4.000%
|
|
440,000
|
493,588
|
South Central Connecticut Regional Water Authority
|
Refunding Revenue Bonds
|
20th Series 2007A (NPFGC)
|
08/01/2022
|
5.250%
|
|
1,370,000
|
1,520,905
|
08/01/2023
|
5.250%
|
|
500,000
|
573,780
|
Municipal Bonds (continued)
|
Issue
Description
|
Coupon
Rate
|
|
Principal
Amount ($)
|
Value
($)
|
29th Series 2014
|
08/01/2025
|
5.000%
|
|
500,000
|
568,240
|
32nd Series 2016B
|
08/01/2035
|
4.000%
|
|
1,000,000
|
1,118,390
|
Total
|
6,561,085
|
Total Municipal Bonds
(Cost $89,568,527)
|
95,115,844
|
Money Market Funds 2.7%
|
|
Shares
|
Value ($)
|
Dreyfus AMT-Free Tax Exempt Cash Management Fund, Institutional Shares, 1.068%(f)
|
1,647,542
|
1,647,707
|
JPMorgan Institutional Tax Free Money Market Fund, Institutional Shares, 1.045%(f)
|
1,138,667
|
1,138,667
|
Total Money Market Funds
(Cost $2,786,209)
|
2,786,374
|
Total Investments in Securities
(Cost: $94,754,736)
|
100,302,218
|
Other Assets & Liabilities, Net
|
|
987,098
|
Net Assets
|
101,289,316
|
Notes to Portfolio of
Investments
(a)
|
The Fund is entitled to receive principal and interest from the guarantor after a day or a week’s notice or upon maturity. The maturity date disclosed represents the final maturity.
|
(b)
|
Represents a variable rate security where the coupon rate adjusts on specified dates (generally daily or weekly) using the prevailing money market rate. The interest rate shown was
the current rate as of October 31, 2019.
|
(c)
|
Municipal obligations include debt obligations issued by or on behalf of territories, possessions, or sovereign nations within the territorial boundaries of the United States. At
October 31, 2019, the total value of these securities amounted to $987,803, which represents 0.98% of total net assets.
|
(d)
|
Represents privately placed and other securities and instruments exempt from Securities and Exchange Commission registration (collectively, private placements), such as Section
4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. The Fund may invest in private placements determined to be liquid as well as those determined to be illiquid.
Private placements may be determined to be liquid under guidelines established by the Fund’s Board of Trustees. At October 31, 2019, the total value of these securities amounted to $1,088,420, which represents
1.07% of total net assets.
|
(e)
|
Income from this security may be subject to alternative minimum tax.
|
(f)
|
The rate shown is the seven-day current annualized yield at October 31, 2019.
|
Abbreviation Legend
AGM
|
Assured Guaranty Municipal Corporation
|
AMBAC
|
Ambac Assurance Corporation
|
AMT
|
Alternative Minimum Tax
|
BAM
|
Build America Mutual Assurance Co.
|
NPFGC
|
National Public Finance Guarantee Corporation
|
The accompanying Notes to Financial Statements are
an integral part of this statement.
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
11
|
Portfolio of Investments (continued)
October 31, 2019
Fair value measurements
The Fund categorizes its fair
value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available.
Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the
Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is
deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example,
certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in
the three broad levels listed below:
■
|
Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments.
|
■
|
Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.).
|
■
|
Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments).
|
Inputs that are used in determining
fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary
between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered
by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include
periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels
within the hierarchy.
Investments falling into the Level 3
category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency
and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant
unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and
estimated cash flows, and comparable company data.
Under the direction of the
Fund’s Board of Trustees (the Board), the Investment Manager’s Valuation Committee (the Committee) is responsible for overseeing the valuation procedures approved by the Board. The Committee consists of
voting and non-voting members from various groups within the Investment Manager’s organization, including operations and accounting, trading and investments, compliance, risk management and legal.
The Committee meets at least monthly
to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of
Board-approved valuation control policies and procedures (the Policies). The Policies address, among other things, instances when market quotations are or are not readily available, including recommendations of third
party pricing vendors and a determination of appropriate pricing methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale
pricing, including those that are illiquid, restricted, or in default; and the effectiveness of third party pricing vendors, including periodic reviews of vendors. The Committee meets more frequently, as needed, to
discuss additional valuation matters, which may include the need to review back-testing results, review time-sensitive information or approve related valuation actions. The Committee reports to the Board, with members
of the Committee meeting with the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.
The following table is a summary of
the inputs used to value the Fund’s investments at October 31, 2019:
|
Level 1 ($)
|
Level 2 ($)
|
Level 3 ($)
|
Total ($)
|
Investments in Securities
|
|
|
|
|
Floating Rate Notes
|
—
|
2,400,000
|
—
|
2,400,000
|
Municipal Bonds
|
—
|
95,115,844
|
—
|
95,115,844
|
Money Market Funds
|
2,786,374
|
—
|
—
|
2,786,374
|
Total Investments in Securities
|
2,786,374
|
97,515,844
|
—
|
100,302,218
|
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The Fund’s assets assigned to
the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical
assets.
The accompanying Notes to Financial Statements are
an integral part of this statement.
12
|
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
Statement of Assets and Liabilities
October 31, 2019
Assets
|
|
Investments in securities, at value
|
|
Unaffiliated issuers (cost $94,754,736)
|
$100,302,218
|
Receivable for:
|
|
Capital shares sold
|
108,546
|
Interest
|
1,148,889
|
Expense reimbursement due from Investment Manager
|
435
|
Prepaid expenses
|
500
|
Trustees’ deferred compensation plan
|
65,567
|
Total assets
|
101,626,155
|
Liabilities
|
|
Due to custodian
|
54
|
Payable for:
|
|
Capital shares purchased
|
14,280
|
Distributions to shareholders
|
228,442
|
Management services fees
|
1,299
|
Distribution and/or service fees
|
130
|
Transfer agent fees
|
10,229
|
Compensation of board members
|
249
|
Compensation of chief compliance officer
|
3
|
Other expenses
|
16,586
|
Trustees’ deferred compensation plan
|
65,567
|
Total liabilities
|
336,839
|
Net assets applicable to outstanding capital stock
|
$101,289,316
|
Represented by
|
|
Paid in capital
|
95,868,192
|
Total distributable earnings (loss)
|
5,421,124
|
Total - representing net assets applicable to outstanding capital stock
|
$101,289,316
|
Class A
|
|
Net assets
|
$7,909,788
|
Shares outstanding
|
740,370
|
Net asset value per share
|
$10.68
|
Maximum sales charge
|
3.00%
|
Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares)
|
$11.01
|
Advisor Class
|
|
Net assets
|
$800,562
|
Shares outstanding
|
75,029
|
Net asset value per share
|
$10.67
|
Class C
|
|
Net assets
|
$2,037,658
|
Shares outstanding
|
190,751
|
Net asset value per share
|
$10.68
|
Institutional Class
|
|
Net assets
|
$81,364,396
|
Shares outstanding
|
7,618,891
|
Net asset value per share
|
$10.68
|
Institutional 3 Class
|
|
Net assets
|
$10,147
|
Shares outstanding
|
948
|
Net asset value per share
|
$10.70
|
Class V
|
|
Net assets
|
$9,166,765
|
Shares outstanding
|
859,306
|
Net asset value per share
|
$10.67
|
Maximum sales charge
|
4.75%
|
Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge
for Class V shares)
|
$11.20
|
The accompanying Notes to Financial Statements are
an integral part of this statement.
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
13
|
Statement of Operations
Year Ended October 31, 2019
Net investment income
|
|
Income:
|
|
Dividends — unaffiliated issuers
|
$20,493
|
Interest
|
3,232,860
|
Total income
|
3,253,353
|
Expenses:
|
|
Management services fees
|
451,181
|
Distribution and/or service fees
|
|
Class A
|
19,407
|
Class C
|
21,187
|
Class V
|
14,160
|
Transfer agent fees
|
|
Class A
|
9,632
|
Advisor Class
|
802
|
Class C
|
2,635
|
Institutional Class
|
94,319
|
Institutional 3 Class
|
2
|
Class V
|
11,723
|
Compensation of board members
|
14,897
|
Custodian fees
|
2,057
|
Printing and postage fees
|
13,708
|
Registration fees
|
7,651
|
Audit fees
|
29,500
|
Legal fees
|
2,015
|
Compensation of chief compliance officer
|
37
|
Other
|
12,941
|
Total expenses
|
707,854
|
Fees waived or expenses reimbursed by Investment Manager and its affiliates
|
(121,203)
|
Fees waived by distributor
|
|
Class C
|
(6,356)
|
Expense reduction
|
(60)
|
Total net expenses
|
580,235
|
Net investment income
|
2,673,118
|
Realized and unrealized gain (loss) — net
|
|
Net realized gain (loss) on:
|
|
Investments — unaffiliated issuers
|
76,184
|
Net realized gain
|
76,184
|
Net change in unrealized appreciation (depreciation) on:
|
|
Investments — unaffiliated issuers
|
4,720,534
|
Net change in unrealized appreciation (depreciation)
|
4,720,534
|
Net realized and unrealized gain
|
4,796,718
|
Net increase in net assets resulting from operations
|
$7,469,836
|
The accompanying Notes to
Financial Statements are an integral part of this statement.
14
|
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
Statement of Changes in Net Assets
|
Year Ended
October 31, 2019
|
Year Ended
October 31, 2018
|
Operations
|
|
|
Net investment income
|
$2,673,118
|
$3,087,112
|
Net realized gain (loss)
|
76,184
|
(180,244)
|
Net change in unrealized appreciation (depreciation)
|
4,720,534
|
(3,671,106)
|
Net increase (decrease) in net assets resulting from operations
|
7,469,836
|
(764,238)
|
Distributions to shareholders
|
|
|
Net investment income and net realized gains
|
|
|
Class A
|
(206,881)
|
(191,573)
|
Advisor Class
|
(18,856)
|
(11,483)
|
Class C
|
(47,272)
|
(80,743)
|
Institutional Class
|
(2,213,310)
|
(2,792,142)
|
Institutional 3 Class
|
(301)
|
(319)
|
Class V
|
(261,499)
|
(300,542)
|
Total distributions to shareholders
|
(2,748,119)
|
(3,376,802)
|
Decrease in net assets from capital stock activity
|
(3,359,046)
|
(17,617,680)
|
Total increase (decrease) in net assets
|
1,362,671
|
(21,758,720)
|
Net assets at beginning of year
|
99,926,645
|
121,685,365
|
Net assets at end of year
|
$101,289,316
|
$99,926,645
|
The accompanying Notes to
Financial Statements are an integral part of this statement.
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
15
|
Statement of Changes in Net Assets (continued)
|
Year Ended
|
Year Ended
|
|
October 31, 2019
|
October 31, 2018
|
|
Shares
|
Dollars ($)
|
Shares
|
Dollars ($)
|
Capital stock activity
|
Class A
|
|
|
|
|
Subscriptions
|
127,282
|
1,321,971
|
269,506
|
2,797,951
|
Distributions reinvested
|
13,152
|
138,360
|
12,375
|
127,965
|
Redemptions
|
(85,664)
|
(904,494)
|
(204,836)
|
(2,131,009)
|
Net increase
|
54,770
|
555,837
|
77,045
|
794,907
|
Advisor Class
|
|
|
|
|
Subscriptions
|
41,052
|
425,066
|
28,324
|
292,938
|
Distributions reinvested
|
1,765
|
18,573
|
1,082
|
11,184
|
Redemptions
|
(2,993)
|
(30,939)
|
(42,663)
|
(445,488)
|
Net increase (decrease)
|
39,824
|
412,700
|
(13,257)
|
(141,366)
|
Class C
|
|
|
|
|
Subscriptions
|
35,619
|
380,579
|
13,876
|
144,783
|
Distributions reinvested
|
4,150
|
43,569
|
7,303
|
75,578
|
Redemptions
|
(76,601)
|
(807,446)
|
(164,468)
|
(1,705,884)
|
Net decrease
|
(36,832)
|
(383,298)
|
(143,289)
|
(1,485,523)
|
Institutional Class
|
|
|
|
|
Subscriptions
|
1,783,284
|
18,733,992
|
817,157
|
8,461,454
|
Distributions reinvested
|
19,969
|
210,214
|
19,995
|
206,691
|
Redemptions
|
(2,139,366)
|
(22,105,242)
|
(2,393,594)
|
(24,856,648)
|
Net decrease
|
(336,113)
|
(3,161,036)
|
(1,556,442)
|
(16,188,503)
|
Class V
|
|
|
|
|
Subscriptions
|
3,350
|
35,102
|
7,506
|
77,532
|
Distributions reinvested
|
13,915
|
146,102
|
16,926
|
174,813
|
Redemptions
|
(91,918)
|
(964,453)
|
(82,410)
|
(849,540)
|
Net decrease
|
(74,653)
|
(783,249)
|
(57,978)
|
(597,195)
|
Total net decrease
|
(353,004)
|
(3,359,046)
|
(1,693,921)
|
(17,617,680)
|
The accompanying Notes to Financial Statements are
an integral part of this statement.
16
|
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
[THIS PAGE INTENTIONALLY LEFT
BLANK]
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
17
|
The following table is intended to
help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are
calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total
return and portfolio turnover are not annualized for periods of less than one year. The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments and certain
derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be higher.
|
Net asset value,
beginning of
period
|
Net
investment
income
|
Net
realized
and
unrealized
gain (loss)
|
Total from
investment
operations
|
Distributions
from net
investment
income
|
Distributions
from net
realized
gains
|
Total
distributions to
shareholders
|
Class A
|
Year Ended 10/31/2019
|
$10.16
|
0.27
|
0.53
|
0.80
|
(0.28)
|
—
|
(0.28)
|
Year Ended 10/31/2018
|
$10.56
|
0.27
|
(0.37)
|
(0.10)
|
(0.28)
|
(0.02)
|
(0.30)
|
Year Ended 10/31/2017
|
$10.86
|
0.29
|
(0.26)
|
0.03
|
(0.29)
|
(0.04)
|
(0.33)
|
Year Ended 10/31/2016
|
$10.91
|
0.29
|
(0.03)
|
0.26
|
(0.29)
|
(0.02)
|
(0.31)
|
Year Ended 10/31/2015
|
$11.06
|
0.30
|
(0.13)
|
0.17
|
(0.30)
|
(0.02)
|
(0.32)
|
Advisor Class
|
Year Ended 10/31/2019
|
$10.15
|
0.30
|
0.53
|
0.83
|
(0.31)
|
—
|
(0.31)
|
Year Ended 10/31/2018
|
$10.54
|
0.30
|
(0.37)
|
(0.07)
|
(0.30)
|
(0.02)
|
(0.32)
|
Year Ended 10/31/2017
|
$10.84
|
0.31
|
(0.26)
|
0.05
|
(0.31)
|
(0.04)
|
(0.35)
|
Year Ended 10/31/2016
|
$10.90
|
0.32
|
(0.04)
|
0.28
|
(0.32)
|
(0.02)
|
(0.34)
|
Year Ended 10/31/2015
|
$11.05
|
0.33
|
(0.13)
|
0.20
|
(0.33)
|
(0.02)
|
(0.35)
|
Class C
|
Year Ended 10/31/2019
|
$10.16
|
0.23
|
0.52
|
0.75
|
(0.23)
|
—
|
(0.23)
|
Year Ended 10/31/2018
|
$10.55
|
0.23
|
(0.37)
|
(0.14)
|
(0.23)
|
(0.02)
|
(0.25)
|
Year Ended 10/31/2017
|
$10.86
|
0.24
|
(0.27)
|
(0.03)
|
(0.24)
|
(0.04)
|
(0.28)
|
Year Ended 10/31/2016
|
$10.91
|
0.24
|
(0.03)
|
0.21
|
(0.24)
|
(0.02)
|
(0.26)
|
Year Ended 10/31/2015
|
$11.06
|
0.25
|
(0.13)
|
0.12
|
(0.25)
|
(0.02)
|
(0.27)
|
Institutional Class
|
Year Ended 10/31/2019
|
$10.16
|
0.30
|
0.53
|
0.83
|
(0.31)
|
—
|
(0.31)
|
Year Ended 10/31/2018
|
$10.55
|
0.30
|
(0.37)
|
(0.07)
|
(0.30)
|
(0.02)
|
(0.32)
|
Year Ended 10/31/2017
|
$10.86
|
0.31
|
(0.27)
|
0.04
|
(0.31)
|
(0.04)
|
(0.35)
|
Year Ended 10/31/2016
|
$10.91
|
0.32
|
(0.03)
|
0.29
|
(0.32)
|
(0.02)
|
(0.34)
|
Year Ended 10/31/2015
|
$11.06
|
0.33
|
(0.13)
|
0.20
|
(0.33)
|
(0.02)
|
(0.35)
|
Institutional 3 Class
|
Year Ended 10/31/2019
|
$10.18
|
0.31
|
0.53
|
0.84
|
(0.32)
|
—
|
(0.32)
|
Year Ended 10/31/2018
|
$10.58
|
0.31
|
(0.37)
|
(0.06)
|
(0.32)
|
(0.02)
|
(0.34)
|
Year Ended 10/31/2017(e)
|
$10.55
|
0.21
|
0.03(f)
|
0.24
|
(0.21)
|
—
|
(0.21)
|
The accompanying Notes to
Financial Statements are an integral part of this statement.
18
|
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
Financial Highlights (continued)
|
Net
asset
value,
end of
period
|
Total
return
|
Total gross
expense
ratio to
average
net assets(a)
|
Total net
expense
ratio to
average
net assets(a),(b)
|
Net investment
income
ratio to
average
net assets
|
Portfolio
turnover
|
Net
assets,
end of
period
(000’s)
|
Class A
|
Year Ended 10/31/2019
|
$10.68
|
7.95%
|
0.93%
|
0.80%(c)
|
2.59%
|
12%
|
$7,910
|
Year Ended 10/31/2018
|
$10.16
|
(0.97%)
|
0.92%
|
0.81%(c)
|
2.63%
|
13%
|
$6,967
|
Year Ended 10/31/2017
|
$10.56
|
0.28%
|
0.93%(d)
|
0.77%(c),(d)
|
2.71%
|
6%
|
$6,424
|
Year Ended 10/31/2016
|
$10.86
|
2.40%
|
0.98%
|
0.81%(c)
|
2.64%
|
12%
|
$10,952
|
Year Ended 10/31/2015
|
$10.91
|
1.60%
|
0.99%
|
0.81%(c)
|
2.76%
|
6%
|
$8,090
|
Advisor Class
|
Year Ended 10/31/2019
|
$10.67
|
8.23%
|
0.68%
|
0.55%(c)
|
2.84%
|
12%
|
$801
|
Year Ended 10/31/2018
|
$10.15
|
(0.63%)
|
0.67%
|
0.56%(c)
|
2.89%
|
13%
|
$357
|
Year Ended 10/31/2017
|
$10.54
|
0.54%
|
0.66%(d)
|
0.51%(c),(d)
|
2.96%
|
6%
|
$511
|
Year Ended 10/31/2016
|
$10.84
|
2.56%
|
0.73%
|
0.56%(c)
|
2.89%
|
12%
|
$1,376
|
Year Ended 10/31/2015
|
$10.90
|
1.86%
|
0.74%
|
0.56%(c)
|
3.04%
|
6%
|
$1,279
|
Class C
|
Year Ended 10/31/2019
|
$10.68
|
7.47%
|
1.68%
|
1.25%(c)
|
2.15%
|
12%
|
$2,038
|
Year Ended 10/31/2018
|
$10.16
|
(1.32%)
|
1.67%
|
1.26%(c)
|
2.17%
|
13%
|
$2,312
|
Year Ended 10/31/2017
|
$10.55
|
(0.27%)
|
1.68%(d)
|
1.23%(c),(d)
|
2.26%
|
6%
|
$3,914
|
Year Ended 10/31/2016
|
$10.86
|
1.94%
|
1.73%
|
1.26%(c)
|
2.20%
|
12%
|
$5,742
|
Year Ended 10/31/2015
|
$10.91
|
1.14%
|
1.74%
|
1.26%(c)
|
2.32%
|
6%
|
$6,574
|
Institutional Class
|
Year Ended 10/31/2019
|
$10.68
|
8.22%
|
0.68%
|
0.55%(c)
|
2.83%
|
12%
|
$81,364
|
Year Ended 10/31/2018
|
$10.16
|
(0.63%)
|
0.67%
|
0.56%(c)
|
2.87%
|
13%
|
$80,804
|
Year Ended 10/31/2017
|
$10.55
|
0.44%
|
0.68%(d)
|
0.53%(c),(d)
|
2.95%
|
6%
|
$100,370
|
Year Ended 10/31/2016
|
$10.86
|
2.66%
|
0.73%
|
0.56%(c)
|
2.90%
|
12%
|
$131,129
|
Year Ended 10/31/2015
|
$10.91
|
1.85%
|
0.74%
|
0.56%(c)
|
3.02%
|
6%
|
$129,107
|
Institutional 3 Class
|
Year Ended 10/31/2019
|
$10.70
|
8.32%
|
0.57%
|
0.45%
|
2.94%
|
12%
|
$10
|
Year Ended 10/31/2018
|
$10.18
|
(0.61%)
|
0.57%
|
0.45%
|
2.99%
|
13%
|
$10
|
Year Ended 10/31/2017(e)
|
$10.58
|
2.31%
|
0.56%(g)
|
0.45%(g)
|
3.02%(g)
|
6%
|
$10
|
The accompanying Notes to
Financial Statements are an integral part of this statement.
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
19
|
Financial Highlights (continued)
|
Net asset value,
beginning of
period
|
Net
investment
income
|
Net
realized
and
unrealized
gain (loss)
|
Total from
investment
operations
|
Distributions
from net
investment
income
|
Distributions
from net
realized
gains
|
Total
distributions to
shareholders
|
Class V
|
Year Ended 10/31/2019
|
$10.15
|
0.28
|
0.53
|
0.81
|
(0.29)
|
—
|
(0.29)
|
Year Ended 10/31/2018
|
$10.54
|
0.28
|
(0.36)
|
(0.08)
|
(0.29)
|
(0.02)
|
(0.31)
|
Year Ended 10/31/2017
|
$10.85
|
0.30
|
(0.27)
|
0.03
|
(0.30)
|
(0.04)
|
(0.34)
|
Year Ended 10/31/2016
|
$10.90
|
0.30
|
(0.03)
|
0.27
|
(0.30)
|
(0.02)
|
(0.32)
|
Year Ended 10/31/2015
|
$11.05
|
0.31
|
(0.12)
|
0.19
|
(0.32)
|
(0.02)
|
(0.34)
|
Notes to Financial Highlights
|
(a)
|
In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such
indirect expenses are not included in the Fund’s reported expense ratios.
|
(b)
|
Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable.
|
(c)
|
The benefits derived from expense reductions had an impact of less than 0.01%.
|
(d)
|
Expenses have been reduced due to a reimbursement of expenses overbilled by a third party. If the reimbursement had been excluded, the expense ratios would have been higher by the
percentages shown for each class in the table below. All fee waivers and expense reimbursements by the Investment Manager and its affiliates were applied before giving effect to this third party reimbursement.
|
Year Ended
|
Class A
|
Advisor
Class
|
Class C
|
Institutional
Class
|
Class V
|
10/31/2017
|
0.04%
|
0.05%
|
0.03%
|
0.03%
|
0.03%
|
(e)
|
Institutional 3 Class shares commenced operations on March 1, 2017. Per share data and total return reflect activity from that date.
|
(f)
|
Calculation of the net gain (loss) per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gain (loss) presented in the Statement of
Operations due to the timing of subscriptions and redemptions of Fund shares in relation to fluctuations in the market value of the portfolio.
|
(g)
|
Annualized.
|
The accompanying Notes to
Financial Statements are an integral part of this statement.
20
|
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
Financial Highlights (continued)
|
Net
asset
value,
end of
period
|
Total
return
|
Total gross
expense
ratio to
average
net assets(a)
|
Total net
expense
ratio to
average
net assets(a),(b)
|
Net investment
income
ratio to
average
net assets
|
Portfolio
turnover
|
Net
assets,
end of
period
(000’s)
|
Class V
|
Year Ended 10/31/2019
|
$10.67
|
8.06%
|
0.83%
|
0.70%(c)
|
2.69%
|
12%
|
$9,167
|
Year Ended 10/31/2018
|
$10.15
|
(0.78%)
|
0.82%
|
0.71%(c)
|
2.73%
|
13%
|
$9,477
|
Year Ended 10/31/2017
|
$10.54
|
0.28%
|
0.83%(d)
|
0.68%(c),(d)
|
2.80%
|
6%
|
$10,456
|
Year Ended 10/31/2016
|
$10.85
|
2.50%
|
0.88%
|
0.71%(c)
|
2.75%
|
12%
|
$11,536
|
Year Ended 10/31/2015
|
$10.90
|
1.72%
|
0.89%
|
0.71%(c)
|
2.87%
|
6%
|
$11,823
|
The accompanying Notes to Financial Statements are
an integral part of this statement.
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
21
|
Notes to Financial Statements
October 31, 2019
Note 1. Organization
Columbia Connecticut Intermediate
Municipal Bond Fund (the Fund), a series of Columbia Funds Series Trust I (the Trust), is a non-diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an
open-end management investment company organized as a Massachusetts business trust.
Fund shares
The Trust may issue an unlimited
number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation
rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have
different minimum initial investment amounts and pay different distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a liquidation will be
proportional to the net asset value of each share class.
As described in the Fund’s
prospectus, Class A and Class C shares are offered to the general public for investment. Advisor Class, Institutional Class and Institutional 3 Class are available through authorized investment professionals to
omnibus retirement plans or to institutional investors and to certain other investors as also described in the Fund’s prospectus. Class C shares automatically convert to Class A shares after 10 years. Class V
shares are available only to investors who received (and who continuously held) Class V shares in connection with previous fund reorganizations.
Note 2. Summary of
significant accounting policies
Basis of preparation
The Fund is an investment company
that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires
management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of
significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Debt securities generally are
valued by pricing services approved by the Board of Trustees based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques that take
into account, as applicable, factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as approved independent broker-dealer quotes. Debt securities for
which quotations are not readily available or not believed to be reflective of market value may also be valued based upon a bid quote from an approved independent broker-dealer. Debt securities maturing in 60 days or
less are valued primarily at amortized cost value, unless this method results in a valuation that management believes does not approximate market value.
Investments in open-end investment
companies, including money market funds, are valued at their latest net asset value.
Investments for which market
quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by
and under the general supervision of the Board of Trustees. If a security or class of securities (such as foreign securities) is valued at fair value, such value is likely to be different from the quoted or published
price for the security, if available.
The determination of fair value
often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and estimated risk premiums. Multiple inputs from various sources may be used
to determine fair value.
22
|
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
Notes to Financial Statements (continued)
October 31, 2019
GAAP requires disclosure regarding
the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category. This information is disclosed following
the Fund’s Portfolio of Investments.
Security transactions
Security transactions are accounted
for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income recognition
Interest income is recorded on an
accrual basis. Market premiums and discounts, including original issue discounts, are amortized and accreted, respectively, over the expected life of the security on all debt securities, unless otherwise noted.
The Fund may place a debt security
on non-accrual status and reduce related interest income when it becomes probable that the interest will not be collected and the amount of uncollectible interest can be reasonably estimated. A defaulted debt security
is removed from non-accrual status when the issuer resumes interest payments or when collectibility of interest is reasonably assured.
Dividend income is recorded on the
ex-dividend date.
Expenses
General expenses of the Trust are
allocated to the Fund and other funds of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are
charged to the Fund. Expenses directly attributable to a specific class of shares are charged to that share class.
Determination of class net asset
value
All income, expenses (other than
class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on
the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each
year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its net tax-exempt and investment company taxable income and net capital
gain, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net
income and certain other amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Distributions to shareholders
Distributions from net investment
income, if any, are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal
income tax regulations, which may differ from GAAP.
Guarantees and indemnifications
Under the Trust’s
organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition,
certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims
that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
Recent accounting pronouncements
Accounting Standards Update 2017-08
Premium Amortization on Purchased Callable Debt Securities
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
23
|
Notes to Financial Statements (continued)
October 31, 2019
In March 2017, the Financial
Accounting Standards Board issued Accounting Standards Update (ASU) No. 2017-08 Premium Amortization on Purchased Callable Debt Securities. ASU No. 2017-08 updates the accounting standards to shorten the amortization
period for certain purchased callable debt securities, held at a premium, to be amortized to the earliest call date. The update applies to securities with explicit, noncontingent call features that are callable at
fixed prices and on preset dates. The standard is effective for annual periods beginning after December 15, 2018 and interim periods within those fiscal years. Management does not expect the implementation of this
guidance to have a material impact on the financial statement amounts and footnote disclosures.
Accounting Standards Update 2018-13
Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement
In August 2018, the Financial
Accounting Standards Board issued Accounting Standards Update (ASU) No. 2018-13 Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The standard is effective for annual periods
beginning after December 15, 2019 and interim periods within those fiscal years, with early adoption permitted. After evaluation, management determined to adopt the ASU effective for the period ended July 31, 2019 and
all subsequent periods. To comply with the ASU, management implemented disclosure changes which include removal of the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, removal
of the policy for the timing of transfers between levels, removal of the description of the Level 3 valuation processes, as well as modifications to the measurement uncertainty disclosure.
Note 3. Fees and other
transactions with affiliates
Management services fees
The Fund has entered into a
Management Agreement with Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). Under the Management Agreement, the
Investment Manager provides the Fund with investment research and advice, as well as administrative and accounting services. The management services fee is an annual fee that is equal to a percentage of the
Fund’s daily net assets that declines from 0.47% to 0.31% as the Fund’s net assets increase. The effective management services fee rate for the year ended October 31, 2019 was 0.47% of the Fund’s
average daily net assets.
Compensation of board members
Members of the Board of Trustees
who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. These members of the Board of Trustees
may participate in a Deferred Compensation Plan (the Deferred Plan) which may be terminated at any time. Obligations of the Deferred Plan will be paid solely out of the Fund’s assets, and all amounts payable
under the Deferred Plan constitute a general unsecured obligation of the Fund.
Compensation of Chief Compliance
Officer
The Board of Trustees has appointed
a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated
to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
Transfer agency fees
Under a Transfer and Dividend
Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for
providing transfer agency services to the Fund. The Transfer Agent has contracted with DST Asset Manager Solutions, Inc. (DST) to serve as sub-transfer agent. The Transfer Agent pays the fees of DST for services as
sub-transfer agent and DST is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
24
|
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
Notes to Financial Statements (continued)
October 31, 2019
The Fund pays the Transfer Agent a
monthly transfer agency fee based on the number or the average value of accounts, depending on the type of account. In addition, the Fund pays the Transfer Agent a fee for shareholder services based on the number of
accounts or on a percentage of the average aggregate value of the Fund’s shares maintained in omnibus accounts up to the lesser of the amount charged by the financial intermediary or a cap established by the
Board of Trustees from time to time.
The Transfer Agent also receives
compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees. Total transfer agency fees for Institutional 3 Class shares are subject to an annual limitation of not
more than 0.02% of the average daily net assets attributable to Institutional 3 Class shares.
For the year ended October 31,
2019, the Fund’s effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
|
Effective rate (%)
|
Class A
|
0.12
|
Advisor Class
|
0.12
|
Class C
|
0.12
|
Institutional Class
|
0.12
|
Institutional 3 Class
|
0.02
|
Class V
|
0.12
|
An annual minimum account balance
fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum
account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the year ended October 31, 2019, these minimum account balance fees reduced total expenses
of the Fund by $60.
Distribution and service fees
The Fund has entered into an
agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder
services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the
Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a
monthly service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class A and Class C shares of the Fund. Also under the Plans, the Fund pays a monthly
distribution fee to the Distributor at the maximum annual rate of 0.75% of the average daily net assets attributable to Class C shares of the Fund.
The Distributor has voluntarily
agreed to waive a portion of the distribution fee for Class C shares so that the distribution fee does not exceed 0.45% annually of the average daily net assets attributable to Class C shares. This arrangement may be
modified or terminated by the Distributor at any time.
Shareholder services fees
The Fund has adopted a shareholder
services plan that permits it to pay for certain services provided to Class V shareholders by their selling and/or servicing agents. The Fund may pay shareholder servicing fees up to an aggregate annual rate of 0.40%
of the Fund’s average daily net assets attributable to Class V shares (comprised of up to 0.20% for shareholder liaison services and up to 0.20% for administrative support services). These fees are currently
limited to an aggregate annual rate of not more than 0.15% of the Fund’s average daily net assets attributable to Class V shares.
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
25
|
Notes to Financial Statements (continued)
October 31, 2019
Sales charges (unaudited)
Sales charges, including front-end
charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the year ended October 31, 2019, if any, are listed below:
|
Front End (%)
|
CDSC (%)
|
Amount ($)
|
Class A
|
3.00
|
0.75(a)
|
4,137
|
Class C
|
—
|
1.00(b)
|
194
|
Class V
|
4.75
|
0.50 - 1.00(c)
|
—
|
(a)
|
This charge is imposed on certain investments of $500,000 or more if redeemed within 12 months after purchase.
|
(b)
|
This charge applies to redemptions within 12 months after purchase, with certain limited exceptions.
|
(c)
|
This charge is imposed on certain investments of between $1 million and $50 million redeemed within 18 months after purchase, as follows: 1.00% if redeemed within 12 months after
purchase, and 0.50% if redeemed more than 12, but less than 18, months after purchase, with certain limited exceptions.
|
The Fund’s other share
classes are not subject to sales charges.
Expenses waived/reimbursed by the
Investment Manager and its affiliates
The Investment Manager and certain
of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole
discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s
custodian, do not exceed the following annual rate(s) as a percentage of the class’ average daily net assets:
|
Fee rate(s) contractual
through
February 29, 2020
|
Class A
|
0.81%
|
Advisor Class
|
0.56
|
Class C
|
1.56
|
Institutional Class
|
0.56
|
Institutional 3 Class
|
0.45
|
Class V
|
0.71
|
Under the agreement governing
these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes
(including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and
brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed
money, interest, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be modified or amended only with approval from
the Investment Manager, certain of its affiliates and the Fund. In addition to the contractual agreement, the Investment Manager and certain of its affiliates have voluntarily agreed to waive fees and/or reimburse
Fund expenses (excluding certain fees and expenses described above) so that Fund level expenses (expenses directly attributable to the Fund and not to a specific share class) are waived proportionately across all
share classes, but the Fund’s net operating expenses shall not exceed the contractual annual rates listed in the table above. This arrangement may be revised or discontinued at any time. Any fees waived and/or
expenses reimbursed under the expense reimbursement arrangements described above are not recoverable by the Investment Manager or its affiliates in future periods. Class C distribution fees waived by the Distributor,
as discussed above, are in addition to the waiver/reimbursement commitment under the agreement.
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.
26
|
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
Notes to Financial Statements (continued)
October 31, 2019
At October 31, 2019, these
differences were primarily due to differing treatment for trustees’ deferred compensation, distributions, and capital loss carryforward. 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 Fund did not have any permanent
differences; therefore, no reclassifications were made.
The tax character of distributions
paid during the years indicated was as follows:
Year Ended October 31, 2019
|
Year Ended October 31, 2018
|
Ordinary
income ($)
|
Tax-exempt
income ($)
|
Long-term
capital gains ($)
|
Total ($)
|
Ordinary
income ($)
|
Tax-exempt
income ($)
|
Long-term
capital gains ($)
|
Total ($)
|
44
|
2,748,075
|
—
|
2,748,119
|
—
|
3,189,109
|
187,693
|
3,376,802
|
Short-term capital gain
distributions, if any, are considered ordinary income distributions for tax purposes.
At October 31, 2019, the components
of distributable earnings on a tax basis were as follows:
Undistributed
ordinary income ($)
|
Undistributed tax-
exempt income ($)
|
Undistributed
long-term
capital gains ($)
|
Capital loss
carryforwards ($)
|
Net unrealized
appreciation ($)
|
—
|
271,694
|
—
|
(104,044)
|
5,547,482
|
At October 31, 2019, 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) ($)
|
Net unrealized
appreciation ($)
|
94,754,736
|
5,559,967
|
(12,485)
|
5,547,482
|
Tax cost of investments and
unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
The following capital loss
carryforwards, determined at October 31, 2019, may be available to reduce taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code. Capital
loss carryforwards with no expiration are required to be utilized prior to any capital losses which carry an expiration date. As a result of this ordering rule, capital loss carryforwards which carry an expiration
date may be more likely to expire unused. In addition, for the year ended October 31, 2019, capital loss carryforwards utilized and expired unused, if any, were as follows:
No expiration
short-term ($)
|
No expiration
long-term ($)
|
Total ($)
|
Utilized ($)
|
Expired ($)
|
(80,644)
|
(23,400)
|
(104,044)
|
76,184
|
—
|
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 $11,532,274 and $17,786,429, respectively, for the year ended October 31, 2019. The amount of purchase and
sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
27
|
Notes to Financial Statements (continued)
October 31, 2019
Note 6. Interfund
lending
Pursuant to an exemptive order
granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and,
except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject
to certain restrictions.
Interfund loans are subject to the
risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject
to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund did not borrow or lend
money under the Interfund Program during the year ended October 31, 2019.
Note 7. Line of credit
The Fund has access to a
revolving credit facility with a syndicate of banks led by Citibank, N.A., HSBC Bank USA, N.A. and JPMorgan Chase Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for
other temporary or emergency purposes. The credit facility, which is a collective agreement between the Fund and certain other funds managed by the Investment Manager or an affiliated investment manager, severally and
not jointly, permits collective borrowings up to $1 billion. Interest is charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the
one-month LIBOR rate and (iii) the overnight bank funding rate, plus in each case, 1.00%. Each borrowing under the credit facility matures no later than 60 days after the date of borrowing. The Fund also pays a
commitment fee equal to its pro rata share of the unused amount of the credit facility at a rate of 0.15% per annum. The commitment fee is included in other expenses in the Statement of Operations. This agreement
expires annually in December unless extended or renewed.
The Fund had no borrowings during
the year ended October 31, 2019.
Note 8. Significant
risks
Credit risk
Credit risk is the risk that the
value of debt securities in the Fund’s portfolio may decline because the issuer defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations,
such as making payments to the Fund when due. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. Lower rated or unrated debt instruments held by the Fund may
present increased credit risk as compared to higher-rated debt instruments.
Geographic concentration risk
Because the Fund invests
substantially in municipal securities issued by the state identified in the Fund’s name and political sub-divisions of that state, the Fund will be particularly affected by adverse tax, legislative, regulatory,
demographic or political changes as well as changes impacting the state’s financial, economic or other condition and prospects. In addition, because of the relatively small number of issuers of tax-exempt
securities in the state, the Fund may invest a higher percentage of assets in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly. The value of municipal and other
securities owned by the Fund also may be adversely affected by future changes in federal or state income tax laws.
Interest rate risk
Interest rate risk is the risk of
losses attributable to changes in interest rates. In general, if prevailing interest rates rise, the values of debt securities tend to fall, and if interest rates fall, the values of debt securities tend to rise.
Actions by governments and central banking authorities can result in increases in interest rates. Increasing interest rates may negatively affect the value of debt securities held by the Fund, resulting in a negative
impact on the Fund’s performance and net asset value per share. In general, the longer the maturity or duration of a debt security, the greater its sensitivity to changes in interest rates.
28
|
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
Notes to Financial Statements (continued)
October 31, 2019
Liquidity risk
Liquidity risk is the risk
associated with a lack of marketability of investments which may make it difficult to sell the investment at a desirable time or price. Changing regulatory, market or other conditions or environments (for example, the
interest rate or credit environments) may adversely affect the liquidity of the Fund’s investments. The Fund may have to accept a lower selling price for the holding, sell other investments, or forego another,
more appealing investment opportunity. Generally, the less liquid the market at the time the Fund sells a portfolio investment, the greater the risk of loss or decline of value to the Fund. A less liquid market can
lead to an increase in Fund redemptions, which may negatively impact Fund performance and net asset value per share, including, for example, if the Fund is forced to sell securities in a down market.
Non-diversification risk
A non-diversified fund is permitted
to invest a greater percentage of its total assets in fewer issuers than a diversified fund. This increases the risk that a change in the value of any one investment held by the Fund could affect the overall value of
the Fund more than it would affect that of a diversified fund holding a greater number of investments. Accordingly, the Fund’s value will likely be more volatile than the value of a more diversified fund.
Shareholder concentration risk
At October 31, 2019, one
unaffiliated shareholder of record owned 74.2% of the outstanding shares of the Fund in one or more accounts. The Fund has no knowledge about whether any portion of those shares was owned beneficially. Subscription
and redemption activity by concentrated accounts may have a significant effect on the operations of the Fund. In the case of a large redemption, the Fund may be forced to sell investments at inopportune times,
including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of less liquid positions. Large redemptions could result in decreased economies of scale and increased operating
expenses for non-redeeming Fund shareholders.
Note 9. Subsequent
events
Management has evaluated the
events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 10. Information
regarding pending and settled legal proceedings
Ameriprise Financial and certain
of its affiliates have historically been involved in a number of legal, arbitration and regulatory proceedings, including routine litigation, class actions, and governmental actions, concerning matters arising in
connection with the conduct of their business activities. Ameriprise Financial believes that the Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject
of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with
the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and regulatory matters that relate to
Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that
these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe
proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to
uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines,
penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial.
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
29
|
Report of Independent Registered Public
Accounting Firm
To the Board of Trustees of Columbia
Funds Series Trust I and Shareholders of Columbia Connecticut Intermediate Municipal Bond Fund
Opinion on the Financial
Statements
We have audited the accompanying
statement of assets and liabilities, including the portfolio of investments, of Columbia Connecticut Intermediate Municipal Bond Fund (one of the funds constituting Columbia Funds Series Trust I, hereafter referred to
as the "Fund") as of October 31, 2019, the related statement of operations for the year ended October 31, 2019, the statement of changes in net assets for each of the two years in the period ended October 31, 2019,
including the related notes, and the financial highlights for each of the periods indicated therein (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 October 31, 2019, 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 October 31, 2019 and the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the
responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of
the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these
financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud.
Our audits included performing
procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test
basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating
the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2019 by correspondence with the custodian and brokers. We believe that our audits
provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Minneapolis, Minnesota
December 20, 2019
We have served as the auditor of
one or more investment companies within the Columbia Funds Complex since 1977.
30
|
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
Federal Income Tax
Information
(Unaudited)
The Fund hereby designates the
following tax attributes for the fiscal year ended October 31, 2019. Shareholders will be notified in early 2020 of the amounts for use in preparing 2019 income tax returns.
Exempt-
interest
dividends
|
|
99.99%
|
|
Exempt-interest dividends. The
percentage of net investment income distributed during the fiscal year that qualifies as exempt-interest dividends for federal income tax purposes.
TRUSTEES AND
OFFICERS
The Board oversees the Fund’s
operations and appoints 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 Trustees 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. The year set forth beneath Length of Service
in the table below is the year in which the Trustee was first appointed or elected as Trustee to any Fund currently in the Columbia Funds Complex or a predecessor thereof. Under current Board policy, members serve
terms of indefinite duration.
Independent trustees
Name, address, year of birth
|
Position held with the Trust and length of service
|
Principal occupation(s) during the past five years and other relevant professional experience
|
Number of Funds in the Columbia Fund Complex overseen
|
Other directorships held by Trustee during the past five years
|
Janet Langford Carrig
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1957
|
Trustee
1996
|
Senior Vice President, General Counsel and Corporate Secretary, ConocoPhillips (independent energy company), September 2007-October 2018
|
71
|
Director, EQT Corporation (natural gas producer)
|
Douglas A. Hacker
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1955
|
Trustee and Chairman of the Board
1996
|
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
|
71
|
Director, Spartan Nash Company (food distributor); Director, Aircastle Limited (aircraft leasing); 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
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1956
|
Trustee
2011
|
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
|
71
|
None
|
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
31
|
TRUSTEES AND OFFICERS (continued)
Independent trustees (continued)
Name, address, year of birth
|
Position held with the Trust and length of service
|
Principal occupation(s) during the past five years and other relevant professional experience
|
Number of Funds in the Columbia Fund Complex overseen
|
Other directorships held by Trustee during the past five years
|
David M. Moffett
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1952
|
Trustee
2011
|
Retired. Consultant to Bridgewater and Associates
|
71
|
Director, CSX Corporation (transportation suppliers); Director, Genworth Financial, Inc. (financial and insurance products and services);
Director, PayPal Holdings Inc. (payment and data processing services); Trustee, University of Oklahoma Foundation; former Director, eBay Inc. (online trading community), 2007-2015; and former Director, CIT Bank, CIT
Group Inc. (commercial and consumer finance), 2010-2016
|
John J. Neuhauser
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1943
|
Trustee
1984
|
President, Saint Michael’s College, August 2007-June 2018; Director or Trustee of several non-profit organizations, including University
of Vermont Medical Center; Academic Vice President and Dean of Faculties, Boston College, August 1999-October 2005; University Professor, Boston College, November 2005-August 2007
|
71
|
Director, Liberty All-Star Equity Fund and Liberty All- Star Growth Fund (closed-end funds)
|
Patrick J. Simpson
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1944
|
Trustee
2000
|
Of Counsel, Perkins Coie LLP (law firm) since 2015; Partner, Perkins Coie LLP, 1988-2014
|
71
|
Former Director, M Fund, Inc. (M Funds mutual fund family), July 2018-July 2019
|
Consultants to the Independent
Trustees*
Name, address, year of birth
|
Position held with the Trust 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
|
J. Kevin Connaughton
c/o Columbia
Management Investment
Advisers, LLC,
225 Franklin Street
Mail Drop BX32 05228,
Boston, MA 02110
1964
|
Independent Trustee Consultant
2016
|
Independent Trustee Consultant, Columbia Funds since March 2016; Adjunct Professor of Finance, Bentley
University since November 2017; Managing Director and General Manager of Mutual Fund Products, Columbia Management Investment Advisers, LLC, May 2010-February 2015; President, Columbia Funds, 2009-2015; and senior
officer of Columbia Funds and affiliated funds, 2003-2015
|
71
|
Director, The Autism Project since March 2015; former Trustee, New Century Portfolios, March 2015-December 2017; formerly on
Board of Governors, Gateway Healthcare, January 2016 – December 2017
|
32
|
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
TRUSTEES AND OFFICERS (continued)
Consultants to the Independent Trustees* (continued)
Name, address, year of birth
|
Position held with the Trust 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
|
Olive Darragh
c/o Columbia
Management Investment
Advisers, LLC,
225 Franklin Street,
Mail Drop BX32 05228,
Boston, MA 02110
1962
|
Independent Trustee Consultant 2019
|
Independent Trustee Consultant, Columbia Funds since June 2019; Managing Director of Darragh Inc. (a strategy and talent management consulting
firm) since 2010; Founder and CEO, Zolio (an investment management talent identification platform) since 2004; Partner, Tudor Investments, 2004-2010; Senior Partner, McKinsey & Company, 2001-2004
|
71
|
Director, University of Edinburgh Business School; former Director, Boston Public Library Foundation
|
Natalie A. Trunow
c/o Columbia
Management Investment
Advisers, LLC,
225 Franklin Street
Mail Drop BX32 05228,
Boston, MA 02110
1967
|
Independent Trustee Consultant
2016
|
Independent Trustee Consultant, Columbia Funds since September 2016; Chief Executive Officer, Millennial
Portfolio Solutions LLC (asset management and consulting services) since January 2016; Director of Investments, Casey Family Programs, April 2016-September 2016; Senior Vice President and Chief Investment Officer,
Calvert Investments, August 2008-January 2016; Section Head and Portfolio Manager, General Motors Asset Management, June 1997-August 2008
|
71
|
Director, Health Services for Children with Special Needs, Inc.; Director, Consumer Credit Counseling Services (formerly
Guidewell Financial Solutions)
|
*
|
J. Kevin Connaughton was appointed consultant to the Independent Trustees effective March 1, 2016. Olive Darragh was appointed consultant to the Independent Trustees effective June
10, 2019. Natalie A. Trunow was appointed consultant to the Independent Trustees effective September 1, 2016. Shareholders of the Funds are expected to be asked to elect each of Mr. Connaughton, Ms. Darragh and Ms.
Trunow as a Trustee at a future shareholder meeting.
|
Interested trustee affiliated with
Investment Manager*
Name, address, year of birth
|
Position held with the Trust 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
|
William F. Truscott
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
1960
|
Trustee
2012
|
Chairman of the Board and President, Columbia Management Investment Advisers, LLC since May 2010 and
February 2012, respectively; Chief Executive Officer, Global Asset Management, Ameriprise Financial, Inc. since September 2012 (previously Chief Executive Officer, U.S. Asset Management & President, Annuities, May
2010-September 2012); Director and Chief Executive Officer, Columbia Management Investment Distributors, Inc. since May 2010 and February 2012, respectively; Chairman of the Board and Chief Executive Officer,
RiverSource Distributors, Inc. since 2006; Director, Threadneedle Asset Management Holdings, SARL since 2014; President and Chief Executive Officer, Ameriprise Certificate Company, 2006-August 2012
|
192
|
Chairman of the Board, Columbia Management Investment Advisers, LLC since May 2010; Director, Columbia Management Investment
Distributors, Inc. since May 2010; former Director, Ameriprise Certificate Company, August 2006 - January 2013
|
*
|
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, visiting columbiathreadneedleus.com/investor/ or contacting your
financial intermediary.
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
33
|
TRUSTEES AND OFFICERS (continued)
The Board has appointed 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, including principal occupations during the past five years, although their specific titles may have varied over the
period. In addition to Mr. Truscott, who is Senior Vice President, 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
|
Christopher O. Petersen
5228 Ameriprise
Financial Center
Minneapolis, MN 55474
Born 1970
|
President and Principal Executive Officer (2015)
|
Vice President and Lead Chief Counsel, Ameriprise Financial, Inc. since January 2015 (previously Vice President and Chief Counsel, January
2010 - December 2014); officer of Columbia Funds and affiliated funds since 2007.
|
Michael G. Clarke
225 Franklin Street
Boston, MA 02110
Born 1969
|
Chief Financial Officer (Principal Financial Officer) (2009) and Senior Vice President (2019)
|
Vice President, Head of North American Operations, and Co-Head of Global Operations, Columbia Management Investment Advisers, LLC, since June
2019 (previously Vice President – Accounting and Tax, May 2010 – May 2019); senior officer of Columbia Funds and affiliated funds since 2002 (previously Treasurer and Chief Accounting Officer, January 2009
- January 2019 and December 2015 - January 2019, respectively).
|
Joseph Beranek
5890 Ameriprise
Financial Center
Minneapolis, MN 55474
Born 1965
|
Treasurer and Chief Accounting Officer (Principal Accounting Officer) (2019)
|
Vice President — Mutual Fund Accounting and Financial Reporting, Columbia Management Investment Advisers, LLC, since December 2018 and
March 2017, respectively (previously Vice President — Pricing and Corporate Actions, May 2010 - March 2017).
|
Paul B. Goucher
485 Lexington Avenue
New York, NY 10017
Born 1968
|
Senior Vice President (2011) and Assistant Secretary (2008)
|
Senior Vice President and Assistant General Counsel, Ameriprise Financial, Inc. since January 2017 (previously Vice President and Lead Chief
Counsel, November 2008 - January 2017 and January 2013 - January 2017, respectively); Vice President, Chief Legal Officer and Assistant Secretary, Columbia Management Investment Advisers, LLC since March 2015
(previously Vice President and Assistant Secretary, May 2010 – March 2015).
|
Thomas P. McGuire
225 Franklin Street
Boston, MA 02110
Born 1972
|
Senior Vice President and Chief Compliance Officer (2012)
|
Vice President — Asset Management Compliance, Ameriprise Financial, Inc., since May 2010; Chief Compliance Officer, Ameriprise
Certificate Company since September 2010.
|
Colin Moore
225 Franklin Street
Boston, MA 02110
Born 1958
|
Senior Vice President (2010)
|
Executive Vice President and Global Chief Investment Officer, Ameriprise Financial, Inc., since July 2013; Executive Vice President and Global
Chief Investment Officer, Columbia Management Investment Advisers, LLC since July 2013.
|
Ryan C. Larrenaga
225 Franklin Street
Boston, MA 02110
Born 1970
|
Senior Vice President (2017), Chief Legal Officer (2017), and Secretary (2015)
|
Vice President and Chief Counsel, Ameriprise Financial, Inc. since August 2018 (previously Vice President and Group Counsel, August 2011 -
August 2018); officer of Columbia Funds and affiliated funds since 2005.
|
Michael E. DeFao
225 Franklin Street
Boston, MA 02110
Born 1968
|
Vice President (2011) and Assistant Secretary (2010)
|
Vice President and Chief Counsel, Ameriprise Financial, Inc. since May 2010.
|
Lyn Kephart-Strong
5228 Ameriprise
Financial Center
Minneapolis, MN 55474
Born 1960
|
Vice President (2015)
|
President, Columbia Management Investment Services Corp. since October 2014; Vice President & Resolution Officer,
Ameriprise Trust Company since August 2009.
|
34
|
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
Board Consideration
and Approval of Management
Agreement
On June 12, 2019, the Board of
Trustees (the Board) and the Trustees who are not interested persons (as defined in the Investment Company Act of 1940) (the Independent Trustees) of Columbia Funds Series Trust I (the Trust) unanimously approved the
continuation of the Management Agreement (the Management Agreement) with Columbia Management Investment Advisers, LLC (the Investment Manager) with respect to Columbia Connecticut Intermediate Municipal Bond Fund (the
Fund) (formerly, Columbia AMT-Free Connecticut Intermediate Muni Bond Fund), a series of the Trust. As detailed below, the Board’s Advisory Fees and Expenses Committee (the Committee) and the Board met on
multiple occasions to review and discuss, among themselves, with the management team of the Investment Manager and with an independent fee consultant, materials provided by the Investment Manager, the independent fee
consultant and others before determining to approve the continuation of the Management Agreement.
In connection with their
deliberations regarding the continuation of the Management Agreement, the Committee and the Board evaluated materials requested from the Investment Manager regarding the Fund and the Management Agreement, and
discussed these materials with representatives of the Investment Manager at Committee meetings held on March 5, 2019, April 25, 2019 and June 11, 2019 and at Board meetings held on March 6, 2019 and June 12, 2019. In
addition, the Board and its various committees consider matters bearing on the Management Agreement at other meetings throughout the year and in prior years and meet regularly with senior management of the Trust and
the Investment Manager. Through the Board’s Investment Oversight Committees, Trustees also meet with selected portfolio managers of the funds the Trustees oversee and with other investment personnel at various
times throughout the year. The Committee and the Board also consulted with the independent fee consultant, Fund counsel and the Independent Trustees’ independent legal counsel, who advised on various matters
with respect to the Committee’s and the Board’s considerations and otherwise assisted the Committee and the Board in their deliberations. On June 11, 2019, the Committee recommended that the Board approve
the continuation of the Management Agreement. On June 12, 2019, the Board, including the Independent Trustees, voting separately, unanimously approved the continuation of the Management Agreement for the Fund.
The Committee and the Board
considered all information that they, their legal counsel or the Investment Manager believed reasonably necessary to evaluate and to determine whether to recommend for approval or approve the continuation of the
Management Agreement. The information and factors considered by the Committee and the Board in recommending for approval or approving the continuation of the Management Agreement for the Fund included the
following:
•
|
Information on the investment performance of the Fund relative to the performance of a group of mutual funds determined to be comparable to the Fund by an independent third-party data provider, as well as
performance relative to benchmarks;
|
•
|
Information on the Fund’s management fees and total expenses, including information comparing the Fund’s expenses to those of a group of comparable mutual funds, as determined by the independent
third-party data provider;
|
•
|
The Investment Manager’s agreement to contractually limit or cap total operating expenses for the Fund through February 29, 2020 so that total operating expenses (excluding certain fees and expenses, such as
transaction costs and certain other investment related expenses, interest, taxes, acquired fund fees and expenses, and infrequent and/or unusual expenses) would not exceed a specified annual rate, as a percentage of
the Fund’s net assets;
|
•
|
The terms and conditions of the Management Agreement;
|
•
|
The current and proposed terms and conditions of other agreements and arrangements with affiliates of the Investment Manager relating to the operations of the Fund, including agreements with respect to the provision
of distribution, transfer agency and shareholder services to the Fund;
|
•
|
Descriptions of various functions performed by the Investment Manager under the Management Agreement, including portfolio management and portfolio trading practices;
|
•
|
Information regarding the management fees of similarly-managed portfolios of other clients of the Investment Manager, including institutional accounts and collective trusts;
|
•
|
Information regarding the reputation, regulatory history and resources of the Investment Manager, including information regarding senior management, portfolio managers and other personnel;
|
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
35
|
Board Consideration and Approval of
Management
Agreement (continued)
•
|
Information regarding the capabilities of the Investment Manager with respect to compliance monitoring services, including an assessment of the Investment Manager’s compliance system by the Fund’s Chief
Compliance Officer; and
|
•
|
The profitability to the Investment Manager and its affiliates from their relationships with the Fund.
|
Nature, extent and quality of
services provided under the Management Agreement
The Committee and the Board
considered the nature, extent and quality of services provided to the Fund by the Investment Manager and its affiliates under the Management Agreement and under separate agreements for the provision of transfer agency
and shareholder services, and the resources dedicated to the Fund and the other Columbia Funds by the Investment Manager and its affiliates. The Committee and the Board considered, among other things, the Investment
Manager’s ability to attract, motivate and retain highly qualified research, advisory and supervisory investment professionals (including compensation programs for personnel involved in fund management,
reputation and other attributes), the portfolio management services provided by those investment professionals, and the quality of the Investment Manager’s investment research capabilities and trade execution
services. The Committee and the Board also considered the potential benefits to shareholders of investing in a mutual fund that is part of a fund complex offering exposure to a variety of asset classes and investment
disciplines and providing a variety of fund and shareholder services.
The Committee and the Board also
considered the professional experience and qualifications of the senior personnel of the Investment Manager, which included consideration of the Investment Manager’s experience with funds using an investment
strategy similar to that used by the Investment Manager for the Fund. The Committee and the Board noted the compliance programs of and the compliance-related resources provided to the Fund by the Investment Manager
and its affiliates and the resources dedicated by the Investment Manager and its affiliates to risk management, and considered the Investment Manager’s ability to provide administrative services to the Fund and
coordinate the activities of the Fund’s other service providers. After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the
nature, extent and quality of the services provided to the Fund under the Management Agreement supported the continuation of the Management Agreement.
Investment performance
The Committee and the Board
reviewed information about the performance of the Fund over various time periods, including performance information relative to benchmarks, information that compared the performance of the Fund to the performance of a
group of comparable mutual funds as determined by the independent third-party data provider, and information and analysis provided by the independent fee consultant. The Committee and the Board also reviewed a
description of the third party’s methodology for identifying the Fund’s peer groups for purposes of performance and expense comparisons. Although the Fund’s performance lagged that of a relevant peer
group for certain (although not necessarily all) periods, the Committee and the Board concluded that other factors relevant to performance were sufficient, in light of other considerations, to support continuation of
the Management Agreement. Those factors included one or more of the following: (i) that the Fund’s performance, although lagging in certain recent periods, was stronger over the longer term; (ii) that the
underperformance was attributable, to a significant extent, to investment decisions that were reasonable and consistent with the Fund’s investment strategy and policies and that the Fund was performing within a
reasonable range of expectations, given those investment decisions, market conditions and the Fund’s investment strategy; (iii) that the Fund’s performance was competitive when compared to other relevant
performance benchmarks or peer groups; and (iv) that the Investment Manager had taken or was taking steps designed to help improve the Fund’s investment performance, including, but not limited to, replacing
portfolio managers, enhancing the resources supporting the portfolio managers, or modifying investment strategies.
The Committee and the Board noted
that, through December 31, 2018, the Fund’s performance was in the thirteenth, seventy-first and seventy-fifth percentile (where the best performance would be in the first percentile) of its category selected by
the independent third-party data provider for the purposes of performance comparisons for the one-, three- and five-year periods, respectively.
36
|
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
Board Consideration and Approval of
Management
Agreement (continued)
The Committee and the Board also considered the
Investment Manager’s performance and reputation generally, the Investment Manager’s historical responsiveness to Board concerns about performance, and the Investment Manager’s willingness to take
steps intended to improve performance. After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the performance of the Fund and the
Investment Manager was sufficient, in light of other considerations, to support the continuation of the Management Agreement.
Investment management fee rates
and other expenses
The Committee and the Board
considered the management fees charged to the Fund under the Management Agreement as well as the total expenses incurred by the Fund. In assessing the reasonableness of the fees under the Management Agreement, the
Committee and the Board considered, among other information, the Fund’s total expense ratio as a percentage of average daily net assets. The Committee and the Board considered data provided by the independent
third-party data provider and the independent fee consultant. The Committee and the Board noted that, as of December 31, 2018, the Fund’s actual management fee and net total expense ratio were both ranked in the
second quintile (where the lowest fees and expenses would be in the first quintile) against the Fund’s expense universe as determined by the independent third-party data provider for purposes of expense
comparison. The Committee and the Board also took into account the fee waiver and expense limitation arrangements agreed to by the Investment Manager, as noted above.
The Committee and the Board also
received and considered information about the management fees charged by the Investment Manager to institutional accounts. In considering the fees charged to those accounts, the Committee and the Board took into
account, among other things, the Investment Manager’s representations about the differences between managing mutual funds as compared to other types of accounts, including differences in the services provided,
differences in the risk profile of such business for the Investment Manager and the additional resources required to manage mutual funds effectively. The Committee and the Board also received and considered
information about the fees charged by the Investment Manager for sub-advisory services it provides to comparable unaffiliated funds. In evaluating the Fund’s management fees, the Committee and the Board also
took into account the demands, complexity and quality of the investment management of the Fund.
After reviewing these and related
factors, the Committee and the Board concluded, within the context of their overall conclusions, that the management fee rates and expenses of the Fund, in light of other considerations, supported the continuation of
the Management Agreement.
Costs of services provided and
profitability
The Committee and the Board also
took note of the costs the Investment Manager and its affiliates incur in connection with the services provided and the profitability to the Investment Manager and its affiliates from their relationships with the
Fund, and the efforts undertaken by the Investment Manager and its affiliates to manage efficiently their costs to provide such services.
The Committee and the Board also
considered the compensation directly or indirectly received by the Investment Manager’s affiliates in connection with their relationships with the Fund. The Committee and the Board reviewed information provided
by management as to the profitability to the Investment Manager and its affiliates of their relationships with the Fund, information about the allocation of expenses used to calculate profitability, and comparisons of
profitability levels realized in 2018 to profitability levels realized in 2017. When reviewing profitability, the Committee and the Board also considered court cases in which adviser profitability was an issue in
whole or in part, the performance of similarly managed funds, the performance of the Fund, and the expense ratio of the Fund. In addition, the Committee and the Board considered information provided by the Investment
Manager regarding the Investment Manager’s financial condition and comparing its profitability to that of other asset management firms that are, or are subsidiaries of, publicly traded companies. In this regard,
the Committee and the Board also considered data provided by the independent fee consultant.
After reviewing these and related
factors, the Committee and the Board concluded, within the context of their overall conclusions, that the costs of services provided and the profitability to the Investment Manager and its affiliates from their
relationships with the Fund supported the continuation of the Management Agreement.
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
37
|
Board Consideration and Approval of
Management
Agreement (continued)
Economies of scale
The Committee and the Board
considered the potential existence of economies of scale in the provision by the Investment Manager of services to the Fund, to groups of related funds, and to the Investment Manager’s investment advisory
clients as a whole, and whether those economies of scale were shared with the Fund through breakpoints in investment management fees or other means, such as expense limitation arrangements and additional investments
by the Investment Manager in investment, trading, compliance and other resources. The Committee and the Board noted that the management fee schedules for the Fund contained breakpoints that would reduce the fee rate
on assets above specified threshold levels.
In considering these matters, the
Committee and the Board also considered the costs of the services provided and the profitability to the Investment Manager and its affiliates from their relationships with the Fund, as noted above. After reviewing
these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the extent to which any economies of scale were expected to be shared with the Fund supported the
continuation of the Management Agreement.
Other benefits to the Investment
Manager
The Committee and the Board
received and considered information regarding “fall-out” or ancillary benefits received by the Investment Manager and its affiliates as a result of their relationships with the Fund, such as the engagement
of the Investment Manager’s affiliates to provide distribution, transfer agency and shareholder services to the Fund. In this regard, among other matters, the Committee and the Board considered that the
Fund’s distributor retains a portion of the distribution fees from the Fund and receives a portion of the sales charges on sales or redemptions of certain classes of shares of the Fund. The Committee and the
Board also considered the benefits of research made available to the Investment Manager by reason of brokerage commissions generated by the Fund’s securities transactions, and reviewed information about the
Investment Manager’s practices with respect to considering brokerage and research services when allocating portfolio transactions. In this connection, the Board also noted that the amount of research made
available to the Investment Manager by reason of brokerage commissions had been declining over time, and may decline further. The Committee and the Board recognized that the Investment Manager’s profitability
would be somewhat lower without these benefits.
Conclusion
The Committee and the Board
reviewed all of the above considerations in reaching their decisions to recommend or approve the continuation of the Management Agreement. In their deliberations, the Trustees did not identify any particular
information that was all-important or controlling, and individual Trustees may have attributed different weights to the various factors. Based on their evaluation of all factors that they deemed to be material,
including those factors described above, and assisted by the advice of independent legal counsel, the Board, including the Independent Trustees, voting separately, unanimously approved the continuation of the
Management Agreement.
38
|
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2019
|
[THIS PAGE INTENTIONALLY LEFT
BLANK]
Columbia Connecticut Intermediate Municipal Bond
Fund
P.O. Box 219104
Kansas City, MO 64121-9104
Please read and consider the
investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus and summary prospectus, which contains this and other important information about the Fund, go to
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments
(Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2019 Columbia Management Investment
Advisers, LLC.
columbiathreadneedleus.com/investor/
Item 2. Code of Ethics.
(a)
|
The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party.
|
(b)
|
During the period covered by this report, there were not any amendments to a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics definition enumerated in paragraph (b) of this Item.
|
(c)
|
During the period covered by this report, there were no waivers, including any implicit waivers, from a provision of the code of ethics to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party that relates to one or more of the items set forth in paragraph (b) of this Item.
|
Item 3. Audit Committee Financial Expert.
The registrant’s Board of Trustees has determined that Douglas A. Hacker and David M. Moffett, each of whom are members of the registrant’s Board of Trustees and Audit Committee, each qualify as an audit committee financial expert. Mr. Hacker and Mr. Moffett are each independent trustees, as defined in paragraph (a)(2) of this item’s instructions.
Item 4. Principal Accountant Fees and Services.
Fee information below is disclosed for the six series of the registrant whose report to stockholders are included in this annual filing.
(a) Audit Fees. Aggregate Audit Fees billed by the principal accountant for professional services rendered during the fiscal years ended October 31, 2019 and October 31, 2018 are approximately as follows:
|
|
2019
|
2018
|
$174,000
|
$193,500
|
Audit Fees include amounts related to the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years.
(b) Audit-Related Fees. Aggregate Audit-Related Fees billed to the registrant by the principal accountant for professional services rendered during the fiscal years ended October 31, 2019 and October 31, 2018 are approximately as follows:
Audit-Related Fees include amounts for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported in Audit Fees above.
During the fiscal years ended October 31, 2019 and October 31, 2018, there were no Audit-Related Fees billed by the registrant’s principal accountant to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for an engagement that related directly to the operations and financial reporting of the registrant.
(c) Tax Fees. Aggregate Tax Fees billed by the principal accountant to the registrant for professional services rendered during the fiscal years ended October 31, 2019 and October 31, 2018 are approximately as follows:
|
|
2019
|
2018
|
$17,400
|
$17,400
|
Tax Fees include amounts for the review of annual tax returns, the review of required shareholder distribution calculations and typically include amounts for professional services by the principal accountant for tax compliance, tax advice and tax planning.
During the fiscal years ended October 31, 2019 and October 31, 2018, there were no Tax Fees billed by the registrant’s principal accountant to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for an engagement that related directly to the operations and financial reporting of the registrant.
(d)
|
All Other Fees. Aggregate All Other Fees billed by the principal accountant to the registrant for professional services rendered during the fiscal years ended October 31, 2019 and October 31, 2018 are approximately as follows:
|
All Other Fees include amounts for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) above.
Aggregate All Other Fees billed by the registrant’s principal accountant to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for an engagement that related directly to the operations and financial reporting of the registrant during the fiscal years ended October 31, 2019 and October 31, 2018 are approximately as follows:
|
|
2019
|
2018
|
$225,000
|
$225,000
|
In fiscal years 2019 and 2018, All Other Fees primarily consists of fees billed for internal control examinations of the registrant’s transfer agent and investment adviser.
(e)(1) Audit Committee Pre-Approval Policies and Procedures
The registrant’s Audit Committee is required to pre-approve the engagement of the registrant’s independent auditors to provide audit and non-audit services to the registrant and non-audit services to its investment adviser (excluding any sub-adviser whose role is primarily portfolio management and is sub-contracted or overseen by another investment adviser (the “Adviser”) or any entity controlling, controlled by or under common control with the Adviser that provides ongoing services to the Fund (a “Control Affiliate”) if the engagement relates directly to the operations and financial reporting of the registrant.
The Audit Committee has adopted a Policy for Engagement of Independent Auditors for Audit and Non-Audit Services (the “Policy”). The Policy sets forth the understanding of the Audit Committee regarding the engagement of the registrant’s independent accountants to provide (i) audit and permissible audit-related, tax and other services to the registrant (“Fund Services”); (ii) non-audit services to the registrant’s Adviser and any Control Affiliates, that relates directly to the operations and financial reporting of a Fund (“Fund-related Adviser Services”); and (iii) certain other audit and non-audit services to the registrant’s Adviser and its Control Affiliates. A service will require specific pre-approval by the Audit Committee if it is to be provided by the Fund’s independent auditor; provided, however, that pre-approval of non-audit services to the Fund, the Adviser or Control Affiliates may be waived if certain de minimis requirements set forth in the SEC’s rules are met.
Under the Policy, the Audit Committee may delegate pre-approval authority to any pre-designated member or members who are independent board members. The member(s) to whom such authority is delegated must report, for informational purposes only, any pre-approval decisions to the Audit Committee at its next regular meeting. The Audit Committee's responsibilities with respect to the pre-approval of services performed by the independent auditor may not be delegated to management.
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On an annual basis, at a regularly scheduled Audit Committee meeting, the Fund’s Treasurer or other Fund officer shall submit to the Audit Committee a schedule of the types of Fund Services and Fund-related Adviser Services that are subject to specific pre-approval. This schedule will provide a description of each type of service that is subject to specific pre-approval, along with total projected fees for each service. The pre-approval will generally cover a one-year period. The Audit Committee will review and approve the types of services and the projected fees for the next one-year period and may add to, or subtract from, the list of pre-approved services from time to time, based on subsequent determinations. This specific approval acknowledges that the Audit Committee is in agreement with the specific types of services that the independent auditor will be permitted to perform and the projected fees for each service.
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The Fund’s Treasurer or other Fund officer shall report to the Audit Committee at each of its regular meetings regarding all Fund Services or Fund-related Adviser Services provided since the last such report was rendered, including a description of the services, by category, with forecasted fees for the annual reporting period, proposed changes requiring specific pre-approval and a description of services provided by the independent auditor, by category, with actual fees during the current reporting period.
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(e)(2) 100% of the services performed for items (b) through (d) above during 2019 and 2018 were pre-approved by the registrant’s Audit Committee.
(f) Not applicable.
(g) The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant during the fiscal years ended October 31, 2019 and October 31, 2018 are approximately as follows:
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2019
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2018
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$242,400
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$242,400
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(h) The registrant’s Audit Committee of the Board of Directors has considered whether the provision of non-audit services that were rendered to the registrant’s adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, is compatible with maintaining the principal accountant’s independence.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments
(a)
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The registrant’s “Schedule I – Investments in securities of unaffiliated issuers” (as set forth in 17 CFR 210.12-12) is included in Item 1 of this Form N-CSR.
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Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There were no material changes to the procedures by which shareholders may recommend nominees to the registrant's board of directors.
Item 11. Controls and Procedures.
(c)
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The registrant’s principal executive officer and principal financial officer, based on their evaluation of the registrant’s disclosure controls and procedures as of a date within 90 days of the filing of this report, have concluded that such controls and procedures are adequately designed to ensure that information required to be disclosed by the registrant in Form N-CSR is accumulated and communicated to the registrant’s management, including the principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
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(d)
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There was no change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
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Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
Not applicable.
Item 13. Exhibits.
(a)(1) Code of ethics required to be disclosed under Item 2 of Form N-CSR attached hereto as Exhibit 99.CODE ETH.
(a)(2) Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT.
(a)(3) Not applicable.
(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) attached hereto as Exhibit 99.906CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(registrant)
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Columbia Funds Series Trust I
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By (Signature and Title)
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/s/ Christopher O. Petersen
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Christopher O. Petersen, President and Principal Executive Officer
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Date
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December 20, 2019
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)
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/s/ Christopher O. Petersen
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Christopher O. Petersen, President and Principal Executive Officer
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Date
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December 20, 2019
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By (Signature and Title)
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/s/ Michael G. Clarke
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Michael G. Clarke, Chief Financial Officer
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Date
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December 20, 2019
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Fund Policy: Code of Ethics for Principal Executive / Senior Financial Officers
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COLUMBIA FUNDS
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Applicable Regulatory Authority
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Section 406 of the Sarbanes-Oxley Act of 2002;
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Item 2 of Form N-CSR
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Related Policies
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Overview and Implementation of Compliance Program
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Policy
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Requires Annual Board Approval
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No but Covered Officers Must provide annual
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certification
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Last Reviewed by AMC
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July 2019
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Overview and Statement
Item 2 of Form N-CSR, the form used by registered management investment companies to file certified annual and semi-annual shareholder reports, requires a registered management investment company to disclose:
•Whether it has adopted a code of ethics that applies to the investment company's principal executive officer and senior financial officers and, if it has not adopted such a code of ethics, why it has not done so; and
•Any amendments to, or waivers from, the code of ethics relating to such officers.
The Board of each Fund has adopted the following Code of Ethics for Principle Executive and Senior Financial Officers (the "Code"), which sets forth the ethical standards to which the Fund holds its principal executive officer and each of its senior financial officers.
This Code should be read and interpreted in conjunction with the Overview and Implementation of Compliance Program Policy.
Policy The Board of each Fund has adopted the Code in order to comply with applicable regulatory requirements as outlined below:
I.Covered Officers/Purpose of the Code
This Code applies to the Fund's Principal Executive Officer, Principal Financial Officer, and Principal Accounting Officer or Controller (the "Covered Officers") for the purpose of promoting:
•Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;
•Full, fair, accurate, timely and understandable disclosure in reports and documents that the Fund files with, or submits to, the SEC, and in other public communications made by the Fund;
•Compliance with applicable laws and governmental rules and regulations;
This document is current as of the last review date but subject to change thereafter. Please consult the online version to verify that this Fund Policy has not been updated or otherwise changed. This Fund Policy is the property of the Funds and must not be provided to any external party without express prior consent from the Fund CCO.
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Fund Policy: Code of Ethics for Principal Executive / Senior Financial Officers
•The prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and
•Accountability for adherence to the Code.
Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual or apparent conflicts of interest.
II.Administration of the Code
The Board has designated an individual to be primarily responsible for the administration of the Code (the "Code Officer"). In the absence of the Code Officer, his or her designee shall serve as the Code Officer, but only on a temporary basis.
The Board has designated a person who meets the definition of a Chief Legal Officer (the "CLO") for purposes of the Sarbanes-Oxley Act of 2002 and the rules promulgated thereunder as the Fund's CLO. The CLO of the Fund shall assist the Fund's Code
Officer in administration of this Code. The Code Officer, in consultation with the CLO, shall be responsible for applying this Code to specific situations (in consultation with Fund counsel, where appropriate) and has the authority to interpret this Code in any particular situation.
III.Managing Conflicts of Interest
A "conflict of interest" occurs when a Covered Officer's personal interest interferes with the interests of, or his or her service to, the Fund. For example, a conflict of interest would arise if a Covered Officer, or a member of his or her family, receives improper personal benefits as a result of the Covered Officer's position with the Fund. Certain provisions in the 1940 Act and the rules and regulations thereunder and the Advisers Act and the rules and regulations thereunder govern certain conflicts of interest that arise out of the relationships between Covered Officers and the Fund. If such conflicts are addressed in conformity with applicable provisions of the 1940 Act and the Advisers Act, they will be deemed to have been handled ethically. The Fund's and its Adviser's compliance programs and procedures are designed to prevent, or identify and correct, violations of those provisions. This Code does not, and is not intended to, repeat or replace those programs and procedures, and conduct that is consistent with such programs and procedures falls outside of the parameters of this Code.
Although they do not typically present an opportunity for improper personal benefit, conflicts may arise from, or as a result of, the contractual relationships between the Fund and, as applicable, its Adviser, administrator, principal underwriter, pricing and bookkeeping agent and/or transfer agent (each, a "Primary Service Provider") of which the Covered Officers are also officers or employees. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for the Fund or for a Primary Service Provider, or for both), be involved in establishing policies and implementing decisions that will have different effects on the Primary
This document is current as of the last review date but subject to change thereafter. Please consult the online version to verify that this Fund Policy has not been updated or otherwise changed. This Fund Policy is the property of the Funds and must not be provided to any external party without express prior consent from the Fund CCO.
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Fund Policy: Code of Ethics for Principal Executive / Senior Financial Officers
Service Providers and the Fund. The participation of the Covered Officers in such activities is inherent in the contractual relationships between the Fund and the Primary Service Providers and is consistent with the performance by the Covered Officers of their duties as officers of the Fund. If such conflicts are addressed in conformity with applicable provisions of the 1940 Act and the Advisers Act, they will be deemed to have been handled ethically. In addition, it is recognized by the Board of the Fund that the Covered Officers also may be officers or employees of one or more other investment companies or organizations affiliated with the sponsor of the Fund covered by other similar codes and that the codes of ethics of those other investment companies or organizations will apply to the Covered Officers acting in such capacities for such other investment companies.
This Code covers general conflicts of interest and other issues applicable to the Funds under the Sarbanes-Oxley Act of 2002. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interests of the Fund. Certain examples of such conflicts of interest follow.
Each Covered Officer must:
•Not use his or her personal influence or personal relationships improperly to influence investment decisions or financial reporting by the Fund whereby the Covered Officer, or a member of his or her family, would knowingly benefit personally to the detriment of the Fund;
•Not knowingly cause the Fund to take action, or fail to take action, for the individual personal benefit of the Covered Officer, or a member of his or her family, rather than the benefit of the Fund;
•Not use material non-public knowledge of portfolio transactions made or contemplated for the Fund to trade personally or cause others to trade personally in contemplation of the market effect of such transactions; and
•Report at least annually (or more frequently, as appropriate) known affiliations or other relationships that may give rise to conflicts of interest with respect to the Fund.
If a Covered Officer believes that he or she has a potential conflict of interest that is likely to materially compromise his or her objectivity or his or her ability to perform the duties of his or her role as a Covered Officer, including a potential conflict of interest that arises out of his or her responsibilities as an officer or employee of one or more Primary Service Providers or other funds, he or she should consult with the Code Officer, the CLO, the Fund's outside counsel, or counsel to the Independent Board Members, as appropriate.
This document is current as of the last review date but subject to change thereafter. Please consult the online version to verify that this Fund Policy has not been updated or otherwise changed. This Fund Policy is the property of the Funds and must not be provided to any external party without express prior consent from the Fund CCO.
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Fund Policy: Code of Ethics for Principal Executive / Senior Financial Officers
Examples of potential conflicts of interest that may materially compromise objectivity or ability to perform the duties of a Covered Officer and which the Covered Officer should consider discussing with the Code Officer or other appropriate person include:
•Service as a director on the board of a public or private company or service as a public official;
•The receipt of a non-de minimus gift when the gift is in relation to doing business directly or indirectly with the Fund;
•The receipt of entertainment from any company with which the Fund has current or prospective business dealings, unless such entertainment is business-related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety;
•An ownership interest in, or any consulting or employment relationship with, any of the Fund's service providers, other than the Primary Service Providers or any affiliated person thereof; and
•A direct or indirect material financial interest in commissions, transaction charges or spreads paid by the Fund for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officer's employment, such as compensation or equity ownership.
IV. Disclosure and Compliance
It is the responsibility of each Covered Officer:
•To familiarize himself or herself with the disclosure requirements generally applicable to the Fund, as well as the business and financial operations of the Fund;
•To not knowingly misrepresent, and to not knowingly cause others to misrepresent, facts about the Fund to others, whether within or outside the Fund, including to the Fund's Board, Legal Counsel, Independent Legal Counsel and auditors, and to governmental regulators and self-regulatory organizations;
•To the extent appropriate within his or her area of responsibility, consult with other officers and employees of the Fund and the Primary Service Providers with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Fund files with, or submits to, the SEC and in other public communications made by the Fund; and
•To adhere to and, within his or her area of responsibility, promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations.
This document is current as of the last review date but subject to change thereafter. Please consult the online version to verify that this Fund Policy has not been updated or otherwise changed. This Fund Policy is the property of the Funds and must not be provided to any external party without express prior consent from the Fund CCO.
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Fund Policy: Code of Ethics for Principal Executive / Senior Financial Officers
V.Reporting and Accountability by Covered Officers Each Covered Officer must:
•Upon adoption of the Code or becoming a Covered Officer, acknowledge in writing to the Fund's Board that he or she has received, read and understands the Code, using the form attached as Appendix A hereto;
•Annually thereafter acknowledge in writing to the Fund's Board that he or she has received and read the Code and believes that he or she has complied with the requirements of the Code, using the form attached as Appendix B hereto;
•Not retaliate against any employee or Covered Officer for reports of potential violations that are made in good faith; and
•Notify the Code Officer promptly if he or she knows of any violation, or of conduct that reasonably could be expected to be or result in a violation, of this Code. Failure to do so is a violation of this Code.
The Fund will follow the policy set forth below in investigating and enforcing this Code:
•The Code Officer will endeavor to take all appropriate action to investigate any potential violation reported to him or her;
•If, after such investigation, the Code Officer believes that no violation has occurred, the Code Officer will so notify the person(s) reporting the potential violation, and no further action is required;
•Any matter that the Code Officer, upon consultation with the CLO, believes is a violation will be reported by the Code Officer or the CLO to the Fund's Audit
Committee;
•The Fund's Audit Committee will be responsible for granting waivers, as appropriate; and
•This Code and any changes to or waivers of the Code will, to the extent required, be disclosed as provided by SEC rules.
VI. Other Policies
This Code shall be the sole code of ethics adopted by the Fund for the purposes of Section 406 of the Sarbanes-Oxley Act of 2002 and the rules and forms applicable to registered management investment companies thereunder. Insofar as other policies or procedures of the Fund or the Fund's Primary Service Providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they conflict with the provisions of this Code. The Fund's and its Adviser's and principal underwriter's codes of ethics under Rule 17j-1 under the 1940 Act and the more detailed policies and procedures of the
This document is current as of the last review date but subject to change thereafter. Please consult the online version to verify that this Fund Policy has not been updated or otherwise changed. This Fund Policy is the property of the Funds and must not be provided to any external party without express prior consent from the Fund CCO.
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Fund Policy: Code of Ethics for Principal Executive / Senior Financial Officers
Primary Service Providers as set forth in their respect Compliance Manuals are separate requirements applicable to the Covered Officers and are not part of this Code.
VII. Disclosure of Amendments to the Code
Any amendments will, to the extent required, be disclosed in accordance with law.
VIII. Confidentiality
All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code or upon advice of counsel, such reports and records shall not be disclosed to anyone other than the Fund's Board, the Covered Officers, the Code Officer, the CLO, the Fund's Primary Service Providers and their affiliates, and outside audit firms, legal counsel to the Fund and legal counsel to the Independent Board Members.
IX. Internal Use
The Code is intended solely for the internal use by the Fund and does not constitute an admission, by or on behalf of the Fund, as to any fact, circumstance, or legal conclusion.
Reporting Requirements
Each Covered Officer must annually acknowledge in writing to the Fund's Board that he or she has received and read the Code and believes that he or she has complied with the requirements of the Code, using the form attached as Appendix II hereto.
The Code Officer or CLO shall report to the Fund's Audit Committee any violations of, or material issues arising under, this Code.
If the Audit Committee concurs that a violation has occurred, it will inform and make a recommendation to the Fund's Board, which will consider appropriate action, which may include review of, and appropriate modifications to: Applicable policies and procedures; Notification to the appropriate personnel of the Fund's Primary Service Providers or their boards; A recommendation to censure, suspend or dismiss the Covered Officer; or Referral of the matter to the appropriate authorities for civil action or criminal prosecution.
All material amendments to this Code must be in writing and approved or ratified by the Fund's Board, including a majority of the Independent Board Members.
The Code Officer, in conjunction with the CLO, shall be responsible for administration of this Code and for adopting procedures to ensure compliance with the requirements set forth herein.
Any issues that arise under this policy should be communicated to an employee's immediate supervisor, and appropriately escalated to AMC. Additionally, AMC will escalate any compliance issues relating to this Code to the Fund CCO and, if warranted, the appropriate Fund Board.
This document is current as of the last review date but subject to change thereafter. Please consult the online version to verify that this Fund Policy has not been updated or otherwise changed. This Fund Policy is the property of the Funds and must not be provided to any external party without express prior consent from the Fund CCO.
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Fund Policy: Code of Ethics for Principal Executive / Senior Financial Officers
Monitoring/Oversight/Escalation
The Code Officer shall be responsible for oversight of compliance with this Code by the Covered Officers. AMC and Ameriprise Risk & Control Services may perform periodic reviews and assessments of various lines of business, including their compliance with this Code.
Recordkeeping
All records must be maintained for at least seven years, the first three in the appropriate Ameriprise Financial, Inc. management office. The following records will be maintained to evidence compliance with this Code: (1) a copy of the information or materials supplied to the Audit Committee or the Board: (i) that provided the basis for any amendment or waiver to this Code; and (ii) relating to any violation of the Code and sanctions imposed for such violation, together with a written record of the approval or action taken by the Audit Committee and/or Board; (2) a copy of the policy and any amendments; and (3) a list of Covered Officers and reporting by Covered Officers.
This document is current as of the last review date but subject to change thereafter. Please consult the online version to verify that this Fund Policy has not been updated or otherwise changed. This Fund Policy is the property of the Funds and must not be provided to any external party without express prior consent from the Fund CCO.
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Appendix A
INITIAL ACKNOWLEDGEMENT
I acknowledge that I have received and read a copy of the Code of Ethics for Principal Executive and Senior Financial Officers (the "Code") and that I understand it. I further acknowledge that I am responsible for understanding and complying with the policies set forth in the Code during my tenure as a Covered Officer, as defined in the Code.
I have set forth below (and on attached sheets of paper, if necessary) all known affiliations or other relationships that may give rise to conflicts of interest for me with respect to the Fund.
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
I also acknowledge my responsibility to report any known violation of the Code to the Code Officer, the CLO, the Fund's outside counsel, or counsel to the Independent Board Members, all as defined in this Code. I further acknowledge that the policies contained in the Code are not intended to create any contractual rights or obligations, express or implied. I also understand that, consistent with applicable law, the Fund has the right to amend, interpret, modify or withdraw any of the provisions of the Code at any time in its sole discretion, with or without notice.
Covered Officer Name and Title: ________________________________________________
(please print)
______________________________________________________________________________
Please return this completed form to the CLO (_______) within one week from the date of your review of these documents. Thank you!
Appendix B
ANNUAL ACKNOWLEDGEMENT
I acknowledge that I have received and read a copy of the Code of Ethics for Principal Executive and Senior Financial Officers (the "Code") and that I understand it. I further acknowledge that I am responsible for understanding and complying with the policies set forth in the Code during my tenure as a Covered Officer, as defined in the Code.
I also acknowledge that I believe that I have fully complied with the terms and provisions of the Code during the period of time since the most recent Initial or Annual Acknowledgement provided by me except as described below.
______________________________________________________________
______________________________________________________________
______________________________________________________________
I have set forth below (and on attached sheets of paper, if necessary) all known affiliations or other relationships that may give rise to conflicts of interest for me with respect to the Fund.1
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
I further acknowledge that the policies contained in the Code are not intended to create any contractual rights or obligations, express or implied. I also understand that, consistent with applicable law, the Fund has the right to amend, interpret, modify or withdraw any of the provisions of the Code at any time in its sole discretion, with or without notice.
Covered Officer Name and Title: ________________________________________________
(please print)
______________________________________________________________________________
Please return this completed form to the CLO (_______) within one week from the date of your receipt of a request to complete and return it. Thank you!
1It is acceptable to refer to affiliations and other relationships previously disclosed in prior Initial or Annual Acknowledgements without setting forth such affiliations and relationships again.
I, Christopher O. Petersen, certify that:
1.I have reviewed this report on Form N-CSR of Columbia Funds Series Trust I;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
(d)disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
(a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
(b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Date: December 20, 2019
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/s/ Christopher O. Petersen
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Christopher O. Petersen, President and Principal
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Executive Officer
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I, Michael G. Clarke, certify that:
1.I have reviewed this report on Form N-CSR of Columbia Funds Series Trust I;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
(d)disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
(a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
(b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Date: December 20, 2019
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/s/ Michael G. Clarke
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Michael G. Clarke, Chief Financial Officer
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