Today, Columbia Seligman Premium Technology Growth Fund, Inc.
(NYSE: STK) (the Fund) declared a first-quarter distribution,
pursuant to its managed distribution policy, in the amount of
$0.4625 per share, which is equal to a quarterly rate of 2.3125%
(9.25% annualized) of the $20.00 offering price in the Fund’s
initial public offering in November 2009. The first-quarter
distribution of $0.4625 per share is equal to a quarterly rate of
1.3960% (5.58% annualized) of the Fund’s market price of $33.13 per
share as of January 31, 2022.
The distribution will be paid on February 22, 2022 (the Payment
Date) to Stockholders of record on February 14, 2022. The
ex-dividend date is February 11, 2022. It is anticipated that the
Fund will make a subsequent distribution under its managed
distribution policy in the month of May.
Prior to the managed distribution policy, the Fund paid
distributions pursuant to a level rate distribution policy. Under
its former distribution policy and consistent with the Investment
Company Act of 1940, as amended, the Fund could not distribute
long-term capital gains more often than once in any one taxable
year.
In October 2010, the Fund received exemptive relief from the
Securities and Exchange Commission that permits the Fund to make
periodic distributions of long-term capital gains more often than
once in any one taxable year. After consideration by the Fund’s
Board, the Fund adopted the current managed distribution policy
which allows the Fund to make periodic distributions of long-term
capital gains.
The following table sets forth the estimated breakdown of the
distribution noted above, on a per share basis, from the following
sources: net investment income; net realized short-term capital
gains; net realized long-term capital gains; and return of capital
or other capital source.
Breakdown of
Distribution
Sources
%
US Dollar
Net Investment Income
0.00
%
$0.0000
Net Realized Short-Term Capital Gains
0.00
%
$0.0000
Net Realized Long-Term Capital Gains
100.00
%
$0.4625
Return of Capital or other Capital
Source
0.00
%
$0.0000
Total
100.00
%
$0.4625
The following table sets forth the estimated breakdown, on a per
share basis, of all distributions made by the Fund during the
year-to-date period ended on the Payment Date (includes the
dividend payment noted in the table above) from the following
sources: net investment income; net realized short-term capital
gains; net realized long-term capital gains; and return of capital
or other capital source.
Breakdown of All Distributions
Paid Through Year-To-Date Period Ended on the Payment Date
Sources
%
US Dollar
Net Investment Income
0.00
%
$0.0000
Net Realized Short-Term Capital Gains
0.00
%
$0.0000
Net Realized Long-Term Capital Gains
100.00
%
$0.4625
Return of Capital or other Capital
Source
0.00
%
$0.0000
Total
100.00
%
$0.4625
Historically, the Fund has distributed more than its income and
net realized capital gains, which has resulted in Fund
distributions substantially consisting of return of capital or
other capital source. A return of capital may occur, for example,
when some or all of the money that you invested in the Fund is paid
back to you. A return of capital distribution does not necessarily
reflect the Fund’s investment performance and should not be
confused with “yield” or “income.” As of the payment date of the
current distribution, all Fund distributions paid in 2022 (as
estimated by the Fund based on current information) are from the
earnings and profits of the Fund and not a return of capital. This
could change during the remainder of the year, as further described
below.
The amounts, sources and percentage breakdown of the
distributions reported above are only estimates and are not being
provided for, and should not be used for, tax reporting purposes.
The actual amounts, sources and percentage breakdown of the
distribution for tax reporting purposes, which may include return
of capital, will depend upon the Fund’s investment experience
during the remainder of its fiscal year and may be subject to
changes based on tax regulations.
The following table sets forth (i) the average annual total
return of a share of the Fund’s common stock at net asset value
(NAV) for the 5-year period ended January 31, 2022 and (ii) the
Fund’s annualized distribution rate, for the same period, expressed
as a percentage of the NAV price of a share of the Fund’s common
stock at January 31, 2022.
Average Annual Total NAV Return for the
5-year Period Ended January 31, 2022
22.83
%
Annualized Distribution Rate as a
Percentage of January 31, 2022 NAV Price (For the 5-year Period
ended January 31, 2022)
6.53
%
The following table sets forth (i) the average annual total
return of a share of the Fund’s common stock at net asset value
(NAV) for the period since inception of Fund investment operations
through the period noted and (ii) the Fund’s annualized
distribution rate, for the same period, expressed as a percentage
of the NAV price of a share of the Fund’s common stock at January
31, 2022. Average annual total return of a share of the Fund’s
common stock at NAV for the period since inception of Fund
Investment operations through the period noted includes the 4.50%
sales load assessed to IPO investors.
Average Annual Total NAV Return for the
Period Since Inception of Investment Operations (November 30, 2009)
Through January 31, 2022
15.83
%
Annualized Distribution Rate as a
Percentage of January 31, 2022 NAV Price (For the Period Since
Inception of Investment Operations (November 30, 2009) through
January 31, 2022)
6.13
%
The following table sets forth (i) the cumulative total
return (at NAV) of a share of the Fund’s common stock for the
year-to-date period ended January 31, 2022 and (ii) the Fund’s
distribution rate, for the same period, expressed as a percentage
of the NAV price of a share of the Fund’s common stock at January
31, 2022.
Cumulative Total NAV Return for the
Year-to-Date Period Ended January 31, 2022
-10.05
%
Distribution Rate as a Percentage of
January 31, 2022 NAV Price (For the Year-to-Date Period Ended
January 31, 2022)
NA – no distributions made during
this period
You should not draw any conclusions about the Fund’s investment
performance from the amount of the distributions noted in the
tables above or from the terms of the Fund’s distribution
policy.
The Fund or your financial professional will send you a Form
1099-DIV for the calendar year that will tell you how to report
these distributions on your US federal income tax return. For tax
purposes, the Fund is required to report unrealized gains or losses
on certain non-US investments as ordinary income or loss,
respectively. Accordingly, the amount of the Fund’s total
distributions that will be taxable as ordinary income may be
different than the amount of the distributions from net investment
income reported above.
The Board may change the Fund’s distribution policy and the
amount or timing of the distributions, based on a number of
factors, including, but not limited to, the amount of the Fund’s
undistributed net investment income and net short- and long-term
capital gains and historical and projected net investment income
and net short- and long-term capital gains.
The Fund is a closed-end investment company that trades on the
New York Stock Exchange.
Past performance does not guarantee future results.
Important Disclosures:
Investors should consider the investment objectives, risks,
charges, and expenses of the Fund carefully before investing. You
can obtain the Fund’s most recent periodic reports and other
regulatory filings by contacting your financial advisor or visiting
www.columbiathreadneedleus.com. These reports and other filings can
also be found on the Securities and Exchange Commission’s EDGAR
Database. You should read these reports and other filings carefully
before investing.
The Fund expects to receive all or some of its current income
and gains from the following sources: (i) dividends received by the
Fund that are paid on the equity and equity-related securities in
its portfolio; and (ii) capital gains (short-term and long-term)
from option premiums and the sale of portfolio securities. It is
possible that the Fund’s distributions will at times exceed the
earnings and profits of the Fund and therefore all or a portion of
such distributions may constitute a return of capital as described
below. A return of capital is a return of your original investment.
A return of capital distribution does not necessarily reflect the
Fund’s investment performance and should not be confused with
“yield” or “income.” You should not draw any conclusions about the
Fund’s investment performance from the amount of this distribution
or from the Fund’s distribution policy.
Distributions that qualify as a return of capital are a return
of some or all of your original investment in the Fund. A return of
capital reduces a stockholder’s tax basis in his or her shares.
Once the tax basis in your shares has been reduced to zero, any
further return of capital may be taxable as capital gain.
Shareholders should consult their tax advisor or tax attorney for
proper treatment.
Distributions may be variable, and the Fund’s distribution rate
will depend on a number of factors, including the net earnings on
the Fund’s portfolio investments and the rate at which such net
earnings change as a result of changes in the timing of, and rates
at which, the Fund receives income from the sources noted above. As
portfolio and market conditions change, the rate of dividends on
the shares and the Fund’s distribution policy could change. The
Board may change the Fund’s distribution policy and the amount or
timing of the distributions, based on a number of factors,
including, but not limited to, the amount of the Fund’s
undistributed net investment income and net short- and long-term
capital gains and historical and projected net investment income
and net short- and long-term capital gains.
The market prices of technology and technology-related stocks
tend to exhibit a greater degree of market risk and price
volatility than other types of investments. These stocks may fall
in and out of favor with investors rapidly, which may cause sudden
selling and dramatically lower market prices. These stocks also may
be affected adversely by changes in technology, consumer and
business purchasing patterns, government regulation and/or obsolete
products or services. Technology and technology-related companies
are often smaller and less experienced companies and may be subject
to greater risks than larger companies, such as limited product
lines, markets and financial and managerial resources. These risks
may be heightened for technology companies in foreign markets.
Investment products are not federally or FDIC-insured, are not
deposits or obligations of, or guaranteed by any financial
institution, and involve investment risks including possible loss
of principal and fluctuation in value.
The Fund's use of derivatives introduces risks possibly greater
than the risks associated with investing directly in the
investments underlying the derivatives. A relatively small price
movement in an underlying investment may result in a substantial
gain or loss.
The Fund should only be considered as one element of a complete
investment program. An investment in the Fund should be considered
speculative. The Fund's investment policy of investing in
technology and technology-related companies and writing call
options involves a high degree of risk.
There is no assurance that the Fund will meet its investment
objectives or that distributions will be made. You could lose some
or all of your investment. In addition, closed-end funds frequently
trade at a discount to their net asset values, which may increase
your risk of loss.
Columbia Threadneedle Investments (Columbia Threadneedle) is the
global brand name of the Columbia and Threadneedle group of
companies.
The Columbia Seligman Premium Technology Growth Fund is managed
by Columbia Management Investment Advisers, LLC. This material is
distributed by Columbia Management Investment Distributors, Inc.,
member FINRA.
© 2022 Columbia Management Investment Advisers, LLC. All rights
reserved. columbiathreadneedleus.com
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Stockholder contact: Kevin Howley 617-385-9517
kevin.howley@columbiathreadneedle.com
Media contact: Elizabeth Kennedy 617-897-9394
liz.kennedy@ampf.com
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