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8-K - FORM 8-K - Columbia Seligman Premium Technology Growth Fund, Inc. | c66430e8vk.htm |
Exhibit 99.1
Stockholder contact:
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Gary Terpening 212-850-1533 gary.a.terpening@columbiamanagement.com |
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Media contact:
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Charles Keller 612-678-7786 charles.r.keller@ampf.com |
Columbia Seligman Premium Technology Growth Fund
Announces Fourth Quarter Distribution:
9.25% Annual Rate for IPO Investors
Announces Fourth Quarter Distribution:
9.25% Annual Rate for IPO Investors
Boston, MA November 3, 2011 Today, Columbia Seligman Premium Technology Growth
Fund, Inc. (NYSE: STK) (the Fund) declared a fourth-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 Funds initial public offering in
November 2009.
The distribution will be paid on November 22, 2011 (the Payment Date) to Stockholders of record on
November 14, 2011. The ex-dividend date is November 10, 2011. It is anticipated that the Fund will
make a subsequent distribution under its managed distribution policy in the month of February.
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 Funds 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.
US Dollar | ||||||||
% Breakdown | Breakdown | |||||||
Sources | of Distribution | of Distribution | ||||||
Net Investment Income |
0.00 | % | $ | 0 | ||||
Net Realized Short-Term Capital Gains |
0.00 | % | $ | 0 | ||||
Net Realized Long-Term Capital Gains |
0.00 | % | $ | 0 | ||||
Return of Capital or other Capital Source |
100.00 | % | $ | 0.4625 | ||||
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.
US Dollar | ||||||||
Breakdown | ||||||||
% Breakdown | of All Distributions | |||||||
of All Distributions Paid | Paid Through Year | |||||||
Through Year To Date | To Date Period | |||||||
Period Ended on the | Ended on the | |||||||
Sources | Payment Date | Payment Date | ||||||
Net Investment Income |
0.00 | % | $ | 0 | ||||
Net Realized Short-Term Capital Gains |
0.00 | % | $ | 0 | ||||
Net Realized Long-Term Capital Gains |
24.16 | % | $ | 0.4469 | ||||
Return of Capital or other Capital Source |
75.84 | % | $ | 1.4031 | ||||
Total |
100.00 | % | $ | 1.8500 |
The Fund estimates that it has distributed more than its income and net realized capital gains.
Therefore, a portion of your distribution may be a 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 Funds
investment performance and should not be confused with yield or income.
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 Funds 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 Funds common
stock at net asset value (NAV) for the period since inception of Fund investment operations through
the period noted and (ii) the Funds annualized distribution rate, for the same period, expressed
as a percentage of the NAV price of a share of the Funds common stock at October 31, 2011.
Average Annual Total NAV Return for the | Annualized Distribution Rate as a Percentage of | |||
Period Since Inception of Investment | October 31, 2011 NAV Price (For the Period | |||
Operations (November 30, 2009) Through | Since Inception of Investment Operations | |||
October 31, 2011 | (November 30, 2009) Through October 31, 2011) | |||
5.86%
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10.31% |
The following table sets forth (i) the cumulative total return (at NAV) of a share of the Funds
common stock for the year-to-date period ended October 31, 2011 and (ii) the Funds distribution
rate, for the same period, expressed as a percentage of the NAV price of a share of the Funds
common stock at October 31, 2011.
Distribution Rate as a Percentage of October | ||||
Cumulative Total NAV Return for the Year-to- | 31, 2011 NAV Price (for the Year-to-Date Period | |||
Date Period Ended October 31, 2011 | Ended October 31, 2011) | |||
-5.54%
|
7.73% |
You should not draw any conclusions about the Funds investment performance from the amount of the
distributions noted in the tables above or from the terms of the Funds 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 Funds 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 Funds 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 Funds 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 Funds most recent periodic reports and other regulatory
filings by contacting your financial advisor or visiting www.columbiamanagement.com. These reports and other filings can also be found on the Securities and Exchange
Commissions 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 Funds 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 Funds investment
performance and should not be confused with yield or income. You should not draw any
conclusions about the Funds investment performance from the amount of this distribution or from
the Funds distribution policy.
A return of capital is not taxable, but it reduces a stockholders tax basis in his or her shares,
thus reducing any loss or increasing any gain on a subsequent taxable disposition by the
stockholder of his or her shares. Distributions may be variable, and the Funds distribution rate
will depend on a number of factors, including the net earnings on the Funds 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 Funds distribution policy could
change. The Board may change the Funds 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
Funds 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 should only be considered as one element of a complete investment program. An investment
in the Fund should be considered speculative. The Funds 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.
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.
The Funds 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 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.
© 2011 Columbia Management Investment Advisers, LLC. All rights reserved.