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SECURITIES AND EXCHANGE COMMISSION

 

 

Washington, D.C. 20549

 

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number

811-22328

 

Columbia Seligman Premium Technology Growth Fund, Inc.

(Exact name of registrant as specified in charter)

 

225 Franklin Street, Boston, Massachusetts

 

02110

(Address of principal executive offices)

 

(Zip code)

 

Scott R. Plummer

5228 Ameriprise Financial Center

Minneapolis, MN 55474

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:

(800) 345-6611

 

 

Date of fiscal year end:

December 31

 

 

Date of reporting period:

September 30, 2013

 

 



 

Item 1. Schedule of Investments.

 



 

Portfolio of Investments

 

Columbia Seligman Premium Technology Growth Fund

 

September 30, 2013 (Unaudited)

 

(Percentages represent value of investments compared to net assets)


 

Issuer

 

Shares

 

Value

 

 

 

 

 

 

 

Common Stocks 98.6%

 

 

 

 

 

CONSUMER DISCRETIONARY 1.5%

 

 

 

 

 

Diversified Consumer Services 0.3%

 

 

 

 

 

LifeLock, Inc. (a)

 

45,835

 

$

679,733

 

Media 1.2%

 

 

 

 

 

News Corp., Class A (a)

 

45,400

 

729,124

 

Time Warner, Inc.

 

13,000

 

855,530

 

Twenty-First Century Fox, Inc.

 

37,600

 

1,259,600

 

Total

 

 

 

2,844,254

 

TOTAL CONSUMER DISCRETIONARY

 

 

 

3,523,987

 

INFORMATION TECHNOLOGY 96.5%

 

 

 

 

 

Communications Equipment 6.6%

 

 

 

 

 

Cisco Systems, Inc.

 

268,800

 

6,295,296

 

QUALCOMM, Inc.

 

138,847

 

9,352,734

 

Total

 

 

 

15,648,030

 

Computers & Peripherals 16.3%

 

 

 

 

 

Apple, Inc.

 

25,800

 

12,300,150

 

EMC Corp.

 

355,700

 

9,091,692

 

NetApp, Inc.

 

284,800

 

12,138,176

 

Seagate Technology PLC

 

29,900

 

1,307,826

 

Synaptics, Inc. (a)

 

87,400

 

3,870,072

 

Total

 

 

 

38,707,916

 

Electronic Equipment, Instruments & Components 0.2%

 

 

 

Trimble Navigation Ltd. (a)

 

17,400

 

516,954

 

Internet Software & Services 4.2%

 

 

 

 

 

Google, Inc., Class A (a)

 

10,500

 

9,197,055

 

Xoom Corp. (a)

 

23,132

 

735,829

 

Total

 

 

 

9,932,884

 

IT Services 3.5%

 

 

 

 

 

Pactera Technology International Ltd, ADR (a)

 

166,640

 

981,509

 

Performant Financial Corp. (a)

 

134,190

 

1,465,355

 

Visa, Inc., Class A

 

5,100

 

974,610

 

WNS Holdings Ltd., ADR (a)

 

235,071

 

4,988,207

 

Total

 

 

 

8,409,681

 

Semiconductors & Semiconductor Equipment 34.1%

 

 

 

Advanced Micro Devices, Inc. (a)

 

638,080

 

2,424,704

 

Avago Technologies Ltd.

 

175,000

 

7,546,000

 

Issuer

 

Shares

 

Value

 

 

 

 

 

 

 

Common Stocks (continued)

 

 

 

INFORMATION TECHNOLOGY (CONTINUED)

 

 

 

Semiconductors & Semiconductor Equipment (continued)

 

Broadcom Corp., Class A

 

370,500

 

$

9,636,705

 

KLA-Tencor Corp.

 

64,712

 

3,937,725

 

Lam Research Corp. (a)

 

326,837

 

16,730,786

 

Lattice Semiconductor Corp. (a)

 

308,437

 

1,375,629

 

Marvell Technology Group Ltd.

 

385,462

 

4,432,813

 

Maxim Integrated Products, Inc.

 

92,200

 

2,747,560

 

Micron Technology, Inc. (a)

 

74,094

 

1,294,422

 

Microsemi Corp. (a)

 

266,700

 

6,467,475

 

Skyworks Solutions, Inc. (a)

 

223,904

 

5,561,776

 

Spansion, Inc., Class A (a)

 

321,775

 

3,246,710

 

Teradyne, Inc. (a)

 

923,900

 

15,262,828

 

Total

 

 

 

80,665,133

 

Software 32.2%

 

 

 

 

 

Activision Blizzard, Inc.

 

106,200

 

1,770,354

 

Check Point Software Technologies Ltd. (a)

 

207,600

 

11,741,856

 

Citrix Systems, Inc. (a)

 

104,400

 

7,371,684

 

Fortinet, Inc. (a)

 

71,500

 

1,448,590

 

Microsoft Corp.

 

73,100

 

2,434,961

 

Nuance Communications, Inc. (a)

 

450,300

 

8,418,358

 

PTC, Inc. (a)

 

166,977

 

4,747,156

 

Salesforce.com, Inc. (a)

 

17,200

 

892,852

 

SolarWinds, Inc. (a)

 

32,300

 

1,132,438

 

Symantec Corp.

 

519,400

 

12,855,150

 

Synopsys, Inc. (a)

 

572,784

 

21,593,957

 

VMware, Inc., Class A (a)

 

22,300

 

1,804,070

 

Total

 

 

 

76,211,426

 

TOTAL INFORMATION TECHNOLOGY

 

230,092,024

 

Total Common Stocks
(Cost: $202,633,603)

 

 

 

$

233,616,011

 

 

 

 

 

 

 

 

 

Shares

 

Value

 

 

 

 

 

 

 

Money Market Funds 1.2%

 

 

 

Columbia Short-Term Cash Fund, 0.089% (b)(c)

 

2,848,913

 

$

2,848,913

 

Total Money Market Funds
(Cost: $2,848,913)

 

 

 

$

2,848,913

 

Total Investments

 

 

 

 

 

(Cost: $205,482,516) (d)

 

 

 

$

236,464,924(e)

 

Other Assets & Liabilities, Net

 

 

 

383,871

 

Net Assets

 

 

 

$

236,848,795

 


 

Investments in Derivatives
Open Options Contracts Written at September 30, 2013

 

 

 

Issuer

 

Puts/Calls

 

Number of
Contracts

 

Exercise Price ($)

 

Premium
Received ($)

 

Expiration
Date

 

Value ($)

 

NASDAQ 100 Index

 

Call

 

181

 

3,300.00

 

221,777

 

October 2013

 

183,715

 

 

 

Notes to Portfolio of Investments

 

 

(a)

Non-income producing.

(b)

The rate shown is the seven-day current annualized yield at September 30, 2013.

(c)

As defined in the Investment Company Act of 1940, an affiliated company is one in which the Fund owns 5% or more of its outstanding voting securities, or a company which is under common ownership or control with the Fund. Holdings and transactions in these affiliated companies during the period ended September 30, 2013, are as follows:

 

Issuer

 

Beginning
Cost ($)

 

Purchase
Cost ($)

 

Proceeds from
Sales ($)

 

Ending Cost ($)

 

Dividends —
Affiliated Issuers ($)

 

Value ($)

 

Columbia Short-Term Cash Fund

 

9,126,798

 

61,894,604

 

(68,172,489

)

2,848,913

 

9,961

 

2,848,913

 

 

(d)

At September 30, 2013, the cost of securities for federal income tax purposes was approximately $205,483,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was:

 

Unrealized Appreciation

 

$

41,670,000

 

Unrealized Depreciation

 

(10,688,000

)

Net Unrealized Appreciation

 

$

30,982,000

 

 

(e)

Investments are valued using policies described in the notes to financial statements in the most recent shareholder report.

 

Abbreviation Legend

 

 

ADR

American Depositary Receipt

 

Fair Value Measurements

 

 

Generally accepted accounting principles (GAAP) require 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.

 

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 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 (including NAV for open-end mutual funds).  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 carrying out 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.

 

For investments categorized as Level 3, the Committee monitors information similar to that described above, which may include: (i) data specific to the issuer or comparable issuers, (ii) general market or specific sector news and (iii) quoted prices and specific or similar security transactions.  The Committee considers this data and any changes from prior periods in order to assess the reasonableness of observable and unobservable inputs, any assumptions or internal models used to value those securities and changes in fair value.  This data is also used to corroborate, when available, information received from approved pricing vendors and brokers.  Various factors impact the frequency of monitoring this information (which may occur as often as daily). However, the Committee may determine that changes to inputs, assumptions and models are not required as a result of the monitoring procedures performed.

 

The following table is a summary of the inputs used to value the Fund’s investments at September 30, 2013:

 

Description

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

 

 

 

 

Quoted Prices in

 

 

Other Significant

 

 

Significant

 

 

 

 

 

 

 

Active Markets for

 

 

Observable

 

 

Unobservable

 

 

 

 

 

 

 

Identical Assets ($)

 

 

Inputs ($)

 

 

Inputs ($)

 

 

Total ($)

 

Equity Securities

 

 

 

 

 

 

 

 

 

Common Stocks

 

 

 

 

 

 

 

 

 

Consumer Discretionary

 

3,523,987

 

-

 

-

 

3,523,987

 

Information Technology

 

230,092,024

 

-

 

-

 

230,092,024

 

Total Equity Securities

 

233,616,011

 

-

 

-

 

233,616,011

 

Mutual Funds

 

 

 

 

 

 

 

 

 

Money Market Funds

 

2,848,913

 

-

 

-

 

2,848,913

 

Total Mutual Funds

 

2,848,913

 

-

 

-

 

2,848,913

 

Investments in Securities

 

236,464,924

 

-

 

-

 

236,464,924

 

Derivatives

 

 

 

 

 

 

 

 

 

Options Contracts Written

 

(183,715

)

-

 

-

 

(183,715

)

Total

 

236,281,209

 

-

 

-

 

236,281,209

 

 

See the Portfolio of Investments for all investment classifications not indicated in the table.

 

There were no transfers of financial assets between Levels 1 and 2 during the period.

 


 

Item  2. Controls and Procedures.

 

(a)         The registrant’s principal executive officer and principal financial officers, 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-Q is accumulated and communicated to the registrant’s management, including the principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

 

(b)         There was no change in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 3. Exhibits.

 

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.

 



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(registrant)

 

Columbia Seligman Premium Technology Growth Fund, Inc.

 

 

 

 

 

 

 

 

 

By (Signature and Title)

 

/s/ J. Kevin Connaughton

 

 

 

J. Kevin Connaughton, President and Principal Executive Officer

 

 

 

 

 

 

 

 

 

Date

 

November 22, 2013

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

 

By (Signature and Title)

 

/s/ J. Kevin Connaughton

 

 

 

J. Kevin Connaughton, President and Principal Executive Officer

 

 

 

 

 

 

 

 

 

Date

 

November 22, 2013

 

 

 

 

 

 

 

 

 

By (Signature and Title)

 

/s/ Michael G. Clarke

 

 

 

Michael G. Clarke, Treasurer and Chief Financial Officer

 

 

 

 

 

 

 

 

 

Date

 

November 22, 2013