UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act File Number 811-22328

COLUMBIA SELIGMAN PREMIUM TECHNOLOGY GROWTH FUND, INC.

 

(Exact name of registrant as specified in charter)

50606 Ameriprise Financial Center, Minneapolis, Minnesota 55474

(Address of principal executive offices)          (Zip code)

Scott R. Plummer - 5228 Ameriprise Financial Center, Minneapolis, MN 55474

(Name and address of agent for service)

Registrant’s telephone number, including area code: (612) 671-1947

Date of fiscal year end: December 31

Date of reporting period: March 31, 2011

 

 

Item 1.		Schedule of Investments

Portfolio of Investments
Columbia Seligman Premium Technology Growth Fund
March 31, 2011 (Unaudited)
(Percentages represent value of investments compared to net assets)

The industries identified above are based on the Global Industry Classification Standard (GICS), which was developed by, and is the exclusive property of, Morgan Stanley Capital International Inc. and Standard & Poor’s, a division of The McGraw-Hill Companies, Inc.

Open Options Contracts Written at March 31, 2011

						Number of				Exercise				Premium				Expiration
Issuer		Puts/Calls				Contracts				Price				Received				Date				Value
Apple, Inc.		Call					21			$	380.00			$	20,111			May 2011				$	8,400
Apple, Inc.		Call					21				370.00				20,748			June 2011					20,580
Intel, Inc.		Put					769				21.00				47,435			April 2011					68,441
Microsoft, Inc.		Put					646				25.00				103,801			Jan. 2012					139,859
NASDAQ 100 Index		Call					700				250.00				3,387,380			April 2011					6,989,500
Total																						$	7,226,780

(a)	Non-income producing.
(b)	Represents a foreign security. At March 31, 2011, the value of foreign securities, excluding short-term securities, represented 17.54% of net assets.
(c)	The rate shown is the seven-day current annualized yield at March 31, 2011.
(d)	Investments in affiliates during the period ended March 31, 2011:

										Sales Cost/												Dividends
										Proceeds from				Realized								or Interest
Issuer		Beginning Cost				Purchase Cost				Sales				Gain/Loss				Ending Cost				Income				Value
Columbia Short-Term Cash Fund		$	6,981,679			$	31,685,183			$	(25,965,093	)		$	—			$	12,701,769			$	2,473			$	12,701,769

(e)	At March 31, 2011, securities valued at $4,652,819 were held to cover open call options written.

(f)	At March 31, 2011, the cost of securities for federal income tax purposes was approximately $272,616,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was:

Unrealized Appreciation		$	42,954,000
Unrealized Depreciation			(6,916,000	)
Net Unrealized Appreciation		$	36,038,000

(g)	Securities are valued using policies described in the notes to financial statements in the most recent shareholder report.

ADR

American Depositary Receipt

Generally accepted accounting principles (GAAP) require disclosure regarding the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category.

The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.

Fair value inputs are summarized in the three broad levels listed below:

•		Level 1 – Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date (including NAV for open-end mutual funds). Valuation adjustments are not applied to Level 1 investments.
•		Level 2 – Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.).
•		Level 3 – Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments).

Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Fund Administrator, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.

Foreign equity securities actively traded in markets where there is a significant delay in the local close relative to the New York Stock Exchange (NYSE) are classified as Level 2. The values of these securities may include an adjustment to reflect the impact of significant market movements following the close of local trading, as described in Note 2 to the financial statements — Security Valuation in the most recent Annual Report dated December 31, 2010.

Investments falling into the Level 3 category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models rely on one or more significant unobservable inputs and/or significant assumptions by the Fund Administrator. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and estimated cash flows, and comparable company data.

The following table is a summary of the inputs used to value the Fund’s investments as of March 31, 2011:

				Fair value at March 31, 2011
				Level 1					Level 2					Level 3
	Description(a)			quoted prices					other					significant					Total
				in active					significant					unobservable
				markets for					observable					inputs
				identical assets					inputs(b)
	Equity Securities
	Common Stocks
	Consumer Discretionary			$	2,779,785				$	—				$	—				$	2,779,785
	Health Care				8,224,317					—					—					8,224,317
	Industrials				7,400,802					1,455,051					—					8,855,853
	Information Technology				274,190,123					1,902,349					—					276,092,472
	Total Equity Securities				292,595,027					3,357,400					—					295,952,427
	Other
	Affiliated Money Market Fund(c)				12,701,769					—					—					12,701,769
	Total Other				12,701,769					—					—					12,701,769
	Investments in Securities				305,296,796					3,357,400					—					308,654,196
	Derivatives
	Liabilities
	Options Contracts Written				7,226,780					—					—					7,226,780
	Total			$	312,523,576				$	3,357,400				$	—				$	315,880,976

^(a) See the Portfolio of Investments for all investment classifications not indicated in the table.

^(b) There were no significant transfers between Levels 1 and 2 during the period.

^(c) Money market fund that is a sweep investment for cash balances in the Fund at March 31, 2011.

Item 2.		Control and Procedures.

(a) The registrant’s principal executive officer and principal financial officer, based on their evaluation of the registrant’s disclosure controls and procedures as of a date within 90 days of the filing of this report, have concluded that such controls and procedures are adequately designed to ensure that material information required to be disclosed by the registrant in Form N-Q is accumulated and communicated to the registrant’s management, including the principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

(b) There was no change in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3.		Exhibits.

Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) Columbia Seligman Premium Technology Growth Fund, Inc.

By		/s/ J. Kevin Connaughton   J. Kevin Connaughton
		President and Principal Executive Officer
Date		May 20, 2011

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By		/s/ J. Kevin Connaughton   J. Kevin Connaughton
		President and Principal Executive Officer
Date		May 20, 2011
By		/s/ Michael G. Clarke   Michael G. Clarke
		Treasurer and Principal Financial Officer
Date		May 20, 2011