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Press Release: Columbia Seligman Premium Technology Growth Fund Announces First Quarter Distribution: 9.25% Annual Rate for IPO Investors

· 02/05/2021 09:00
Cumulative Total NAV Return for the Year-to-Date Period Ended January 31, 2021 3.20% -------------------------------------- -------------------------------------- Distribution Rate as a Percentage of 0.00% - N/A - no distributions made January 31, 2021 NAV Price (For the during this period Year-to-Date Period Ended January 31, 2021) -------------------------------------- --------------------------------------Average Annual Total NAV Return for the Period Since Inception of Investment Operations (November 30, 2009) Through January 31, 2021 15.33% -------------------------------------------------------------------- ------ Annualized Distribution Rate as a Percentage of January 31, 2021 NAV Price (For the Period Since Inception of Investment Operations (November 30, 2009) through January 31, 2021) 6.59% -------------------------------------------------------------------- ------Average Annual Total NAV Return for the 5-year Period Ended January 31, 2021 25.31% -------------------------------------------------------------------- ------ Annualized Distribution Rate as a Percentage of January 31, 2021 NAV Price (For the 5-year Period ended January 31, 2021) 6.76% -------------------------------------------------------------------- ------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 15.50% $0.0717 Net Realized Long-Term Capital Gains 84.50% $0.3908 Return of Capital or other Capital Source 0.00% $0.0000 ------------------------- --------------------- ------------------------ Total 100.00% $0.4625 ------------------------- --------------------- ------------------------Breakdown of Distribution ------------------------------------------ --------------------------- Sources % US Dollar ------------------------------------------ ----------- -------------- Net Investment Income 0.00% $0.0000 Net Realized Short-Term Capital Gains 15.50% $0.0717 Net Realized Long-Term Capital Gains 84.50% $0.3908 Return of Capital or other Capital Source 0.00% $0.0000 ------------------------------------------- ----------- -------------- Total 100.00% $0.4625 ------------------------------------------- ----------- --------------BOSTON--(BUSINESS WIRE)--February 05, 2021--

Columbia Seligman Premium Technology Growth Fund Announces First Quarter Distribution: 9.25% Annual Rate for IPO Investors

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 1.6619% (6.65% annualized) of the Fund's market price of $27.83 per share as of January 31, 2021.

The distribution will be paid on February 23, 2021 (the Payment Date) to Stockholders of record on February 16, 2021. The ex-dividend date is February 12, 2021. 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.

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.

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 2021 (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, 2021 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, 2021.

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, 2021. 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.

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, 2021 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, 2021.

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.

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February 05, 2021 09:00 ET (14:00 GMT)