The Fund may place a debt security on non-accrual status and reduce related interest
income when it becomes probable that the interest will not be collected and the amount of uncollectible interest can be
reasonably estimated. The Fund may also adjust accrual rates when it becomes probable the full interest will not be collected
and a partial payment will be received. A defaulted debt security is removed from non-accrual status when the issuer resumes
interest payments or when collectability of interest is reasonably assured.
Dividend income is 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 net tax-exempt and 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, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net income
and certain other amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income
or excise tax provision is recorded.
Distributions to shareholders
Distributions from net investment income, if any, are declared daily and paid monthly.
Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions
are determined in accordance with federal income tax regulations, which may differ from GAAP.
Guarantees and indemnifications
Under the Trust’s organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition, certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims that may be made against
the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
Recent accounting pronouncements and regulatory updates
Accounting Standards Update 2023-09 Income Taxes (Topic 740)
In December 2023, the FASB issued Accounting Standards Update No. 2023-09 Income Taxes
(Topic 740) Improvements to Income Tax Disclosures. The amendments were issued to enhance the transparency and
decision usefulness of income tax disclosures primarily related to rate reconciliation and income taxes paid information.
The amendments are effective for annual periods beginning after December 15, 2024, with early adoption permitted. Management
expects that the adoption of the amendments will not have a material impact on its financial statements.
Note 3. Fees and other transactions with affiliates
The Fund has entered into a Management Agreement with Columbia Management Investment
Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial).
Under the Management Agreement, the Investment Manager provides the Fund with investment research and advice, as well
as administrative and accounting
