Columbia Seligman Premium Technology Growth Fund Declares Fourth Quarter Distribution

Columbia Seligman Premium Technology Growth Fund, Inc. (NYSE: STK) announced its fourth-quarter distribution today, in line with its managed distribution policy. The fund declared a distribution of $0.4625 per share, reflecting a quarterly rate of 2.3125% (9.25% annualized) based on the $20.00 offering price during its initial public offering in November 2009. Additionally, the distribution represents a quarterly rate of 1.4131% (5.65% annualized) of the Fund’s market price of $32.73 per share as of October 31, 2024.

The distribution will be paid on November 26, 2024, to stockholders of record as of November 18, 2024, with an ex-dividend date set for November 18, 2024. The fund anticipates making another distribution in February and potentially before the end of the year to avoid incurring federal excise tax applicable to funds that do not distribute all their annual income.

Prior to transitioning to the managed distribution policy, the Fund adhered to a level rate distribution policy. However, following exemptive relief received from the Securities and Exchange Commission in October 2010, the fund adopted the current managed distribution policy, enabling it to distribute long-term capital gains more frequently.

Despite estimates suggesting that all distributions in 2024 originate from the fund’s earnings and profits, the actual breakdown and tax implications may vary depending on the Fund’s investment performance for the remainder of the fiscal year. As per the reports, the fund aims to maintain distribution rates as a percentage of the NAV price of a share and provide total return to its investors.

Investors are encouraged to review the Fund’s periodic reports and other regulatory filings for a comprehensive understanding of the investment objectives, risks, charges, and expenses before making any investment decisions. Moreover, since the Fund’s distributions may at times exceed earnings and profits, a return of capital distribution could reduce a shareholder’s tax basis, with potential tax implications.

Market risks, particularly within the technology sector, and investments in small- and mid-cap companies, present notable volatility and high risk potential. The Fund’s derivatives strategies also pose potential risks that could result in significant losses.

The Fund, managed by Columbia Management Investment Advisers, LLC, should be considered as part of a diversified investment portfolio, with a recognition of the risks associated with investing in closed-end funds. Past performance does not guarantee future results, and investors should exercise caution in assessing the Fund’s investment policies and performance.

Disclaimer: The Fund is not insured by the FDIC, NCUA, or any federal agency, entails investment risks, and may involve a possible loss of principal and fluctuations in value. Columbia Threadneedle Investments and Columbia Management Investment Advisers, LLC reserve all rights to the information provided.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Columbia Seligman Premium Technology Growth Fund’s 8K filing here.

Columbia Seligman Premium Technology Growth Fund Company Profile

Columbia Seligman Premium Technology Growth Fund is a closed ended equity mutual fund launched and managed by Columbia Management Investment Advisers, LLC. It invests in public equity markets. The fund seeks to invest in stocks of companies operating in the technology sector. It primarily invests in growth stocks of companies.