are allocated to dividend income, capital gain and return of capital based on actual
information reported. Return of capital is recorded as a reduction of the cost basis of securities held. If the Fund no longer
owns the applicable securities, return of capital is recorded as a realized gain. With respect to REITs, to the extent actual
information has not yet been reported, estimates for return of capital are made by Columbia Management Investment Advisers,
LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). The Investment Manager’s estimates are subsequently adjusted when the actual character of the distributions is disclosed
by the REITs, which could result in a proportionate change in return of capital to shareholders.
Awards from class action litigation are recorded as a reduction of cost basis if the
Fund still owns the applicable securities on the payment date. If the Fund no longer owns the applicable securities on the payment
date, the proceeds are recorded as realized gains.
The value of additional securities received as an income payment through a payment-in-kind,
if any, is recorded as interest income and increases the cost basis of such securities.
The Fund may receive other income from senior loans, including amendment fees, consent
fees and commitment fees. These fees are recorded as income when received by the Fund. These amounts are included
in Interest Income in the Statement of Operations.
Income and capital gain distributions from the Underlying Funds, if any, are recorded
on the ex-dividend date.
General expenses of the Trust are allocated to the Fund and other funds of the Trust
based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses
directly attributable to the Fund are charged to the Fund. Expenses directly attributable to a specific class of shares
are charged to that share class.
Determination of class net asset value
All income, expenses (other than class-specific expenses, which are charged to that
share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class
of the Fund on a daily basis, based on the relative net assets of each class, for purposes of determining the net asset value
of each class.
Federal income tax status
The Fund intends to qualify each year as a regulated investment company under Subchapter
M of the Internal Revenue Code, as amended, and will distribute substantially all of its investment company
taxable income and net capital gain, if any, for its tax year, and as such will not be subject to federal income taxes. In addition,
because the Fund meets the exception under Internal Revenue Code Section 4982(f), the Fund expects not to be subject to
federal excise tax. Therefore, no federal income or excise tax provision is recorded.
The Fund may be subject to foreign taxes on income, gains on investments or currency
repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries, as applicable, based
upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.
Realized gains in certain countries may be subject to foreign taxes at the Fund level,
based on statutory rates. The Fund accrues for such foreign taxes on realized and unrealized gains at the appropriate
rate for each jurisdiction, as applicable. The amount, if any, is disclosed as a liability in the Statement of Assets and Liabilities.
Distributions to subaccounts
Distributions to the subaccounts of Contracts, Qualified Plans and Qualified Investors
are recorded at the close of business on the record date and are payable on the first business day following the record
date. Dividends from net investment income, if any, are declared and distributed annually. Capital gain distributions,
when available, will be made annually. However, an additional capital gain distribution may be made during the fiscal year
in order to comply with the Internal Revenue Code, as applicable to registered investment companies. Income distributions
and capital gain distributions are
