Columbia Seligman's Tech Growth Fund: A Special Fourth Quarter Distribution

Columbia Seligman Premium Technology Growth Fund (STK) has recently announced a special fourth quarter distribution of $3.2669 per share, a move aimed at avoiding a 4% federal excise tax in 2024. This distribution, set to be paid on January 21, 2025, to stockholders of record as of December 16, 2024, is a strategic decision that highlights the fund's commitment to optimizing its tax position and maximizing shareholder value.

The special distribution is primarily composed of net realized long-term capital gains (90.44%), with a smaller portion (9.56%) from net realized short-term capital gains. This breakdown reflects the fund's historical focus on long-term growth in the technology sector.

STK's 5-year average annual total NAV return through November 30, 2024, was 18.91%, with an annualized distribution rate of 5.92%. This strong performance underscores the fund's ability to deliver consistent returns to its investors while maintaining a competitive tax status.

The fund's managed distribution policy, adopted in 2010, allows it to make periodic distributions of long-term capital gains more often than once a year. This policy enables STK to provide a steady income stream to its investors while remaining tax-efficient.

The special fourth quarter distribution by Columbia Seligman Premium Technology Growth Fund is a testament to the fund's commitment to optimizing its tax position and delivering value to its shareholders. The fund's strong performance and managed distribution policy position it well to continue its growth trajectory and provide a steady income stream to its investors.