TRI-CONTINENTAL CORP

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-Q

 

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS

OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-00266

 

 

Tri-Continental Corporation

(Exact name of registrant as specified in charter)

 

 

 

225 Franklin Street, Boston, Massachusetts

   02110

(Address of principal executive offices)

   (Zip code)

 

 

Christopher O. Petersen

c/o Columbia Management Investment Advisors, LLC

225 Franklin Street

Boston, Massachusetts 02110

Ryan C. Larrenaga, Esq.

c/o Columbia Management Investment Advisers, LLC

225 Franklin Street

Boston, MA 02110

(Name and address of agent for service)

 

 

Registrant’s telephone number, including area code: (800) 345-6611

Date of fiscal year end: December 31

Date of reporting period: September 30, 2018

 

 

 

Item 1. Schedule of Investments.

 

Portfolio of Investments
Tri-Continental Corporation, September 30, 2018 (Unaudited)
(Percentages represent value of investments compared to net assets)
Investments in securities
Common Stocks 67.1%
Issuer Shares Value ($)
Consumer Discretionary 7.7%
Hotels, Restaurants & Leisure 2.1%
Carnival Corp. 70,000 4,463,900
Extended Stay America, Inc. 400,000 8,092,000
Marriott International, Inc., Class A 120,500 15,909,615
Six Flags Entertainment Corp. 97,500 6,807,450
Total   35,272,965
Household Durables 0.2%
PulteGroup, Inc. 145,500 3,604,035
Internet & Direct Marketing Retail 1.5%
Amazon.com, Inc.(a) 7,775 15,573,325
Booking Holdings, Inc.(a) 5,475 10,862,400
Total   26,435,725
Leisure Products 0.3%
Hasbro, Inc. 42,500 4,467,600
Media 0.9%
Comcast Corp., Class A 301,500 10,676,115
News Corp., Class A 311,100 4,103,409
Viacom, Inc., Class B 36,500 1,232,240
Total   16,011,764
Multiline Retail 0.6%
Kohl’s Corp. 143,800 10,720,290
Specialty Retail 1.3%
Best Buy Co., Inc. 170,400 13,522,944
Foot Locker, Inc. 181,800 9,268,164
Total   22,791,108
Textiles, Apparel & Luxury Goods 0.8%
Ralph Lauren Corp. 94,700 13,025,985
Total Consumer Discretionary 132,329,472
Consumer Staples 4.5%
Food & Staples Retailing 1.8%
Walgreens Boots Alliance, Inc. 230,050 16,770,645
Walmart, Inc. 146,400 13,748,424
Total   30,519,069
Common Stocks (continued)
Issuer Shares Value ($)
Food Products 0.9%
Kellogg Co. 130,000 9,102,600
Tyson Foods, Inc., Class A 105,200 6,262,556
Total   15,365,156
Household Products 0.6%
Kimberly-Clark Corp. 96,150 10,926,486
Tobacco 1.2%
Altria Group, Inc. 112,500 6,784,875
Philip Morris International, Inc. 167,500 13,657,950
Total   20,442,825
Total Consumer Staples 77,253,536
Energy 3.9%
Energy Equipment & Services 0.3%
National Oilwell Varco, Inc. 102,400 4,411,392
Oil, Gas & Consumable Fuels 3.6%
BP PLC, ADR 200,000 9,220,000
Chevron Corp.(b) 33,500 4,096,380
ConocoPhillips 244,100 18,893,340
Marathon Petroleum Corp. 80,800 6,461,576
Suncor Energy, Inc. 215,000 8,318,350
Valero Energy Corp. 137,000 15,583,750
Total   62,573,396
Total Energy 66,984,788
Financials 10.3%
Banks 4.9%
Bank of America Corp. 275,000 8,101,500
BB&T Corp. 125,000 6,067,500
Citigroup, Inc. 277,700 19,922,198
Citizens Financial Group, Inc. 16,800 647,976
Fifth Third Bancorp 124,200 3,467,664
JPMorgan Chase & Co. 340,100 38,376,884
PacWest Bancorp 165,000 7,862,250
Total   84,445,972
Tri-Continental Corporation  | Quarterly Report 2018
 1

Portfolio of Investments   (continued)
Tri-Continental Corporation, September 30, 2018 (Unaudited)
Common Stocks (continued)
Issuer Shares Value ($)
Capital Markets 2.7%
Ares Capital Corp. 500,000 8,595,000
BlackRock, Inc. 17,850 8,413,240
S&P Global, Inc. 78,500 15,338,115
T. Rowe Price Group, Inc. 95,300 10,404,854
TCG BDC, Inc. 250,000 4,175,000
Total   46,926,209
Consumer Finance 0.4%
Capital One Financial Corp. 61,300 5,819,209
Insurance 1.6%
Allstate Corp. (The) 137,000 13,521,900
Principal Financial Group, Inc. 115,000 6,737,850
Prudential Financial, Inc. 71,500 7,244,380
Total   27,504,130
Mortgage Real Estate Investment Trusts (REITS) 0.7%
Blackstone Mortgage Trust, Inc. 112,500 3,769,875
Starwood Property Trust, Inc. 400,000 8,608,000
Total   12,377,875
Total Financials 177,073,395
Health Care 9.9%
Biotechnology 2.3%
AbbVie, Inc. 66,280 6,268,762
Alexion Pharmaceuticals, Inc.(a) 34,700 4,823,647
Biogen, Inc.(a) 16,900 5,970,939
BioMarin Pharmaceutical, Inc.(a) 37,600 3,646,072
Gilead Sciences, Inc. 172,600 13,326,446
TESARO, Inc.(a) 15,200 592,952
Vertex Pharmaceuticals, Inc.(a) 26,250 5,059,425
Total   39,688,243
Health Care Equipment & Supplies 1.2%
Abbott Laboratories 97,800 7,174,608
Baxter International, Inc. 171,900 13,251,771
Total   20,426,379
Common Stocks (continued)
Issuer Shares Value ($)
Health Care Providers & Services 1.4%
AmerisourceBergen Corp. 44,700 4,122,234
Express Scripts Holding Co.(a) 94,679 8,995,452
Humana, Inc. 23,000 7,785,960
WellCare Health Plans, Inc.(a) 12,501 4,006,445
Total   24,910,091
Pharmaceuticals 5.0%
Allergan PLC 10,300 1,961,944
Bristol-Myers Squibb Co. 354,900 22,032,192
Eli Lilly & Co. 174,700 18,747,057
Johnson & Johnson 108,700 15,019,079
Merck & Co., Inc. 92,500 6,561,950
Pfizer, Inc. 483,809 21,321,463
Total   85,643,685
Total Health Care 170,668,398
Industrials 6.1%
Aerospace & Defense 2.2%
Boeing Co. (The) 78,400 29,156,960
General Dynamics Corp. 7,600 1,555,872
Lockheed Martin Corp. 20,000 6,919,200
Raytheon Co. 4,200 867,972
Total   38,500,004
Airlines 0.9%
Delta Air Lines, Inc. 279,350 16,154,811
Electrical Equipment 0.8%
Acuity Brands, Inc. 45,200 7,105,440
AMETEK, Inc. 51,700 4,090,504
Emerson Electric Co. 38,600 2,955,988
Total   14,151,932
Industrial Conglomerates 0.3%
Honeywell International, Inc. 35,600 5,923,840
Machinery 0.5%
Illinois Tool Works, Inc. 19,900 2,808,288
Snap-On, Inc. 12,600 2,313,360
Stanley Black & Decker, Inc. 21,000 3,075,240
Total   8,196,888
 
2 Tri-Continental Corporation  | Quarterly Report 2018

Portfolio of Investments   (continued)
Tri-Continental Corporation, September 30, 2018 (Unaudited)
Common Stocks (continued)
Issuer Shares Value ($)
Professional Services —%
Nielsen Holdings PLC 15,300 423,198
Road & Rail 0.3%
Union Pacific Corp. 27,900 4,542,957
Trading Companies & Distributors 0.8%
W.W. Grainger, Inc. 36,300 12,973,983
Transportation Infrastructure 0.3%
Macquarie Infrastructure Corp. 95,000 4,382,350
Total Industrials 105,249,963
Information Technology 17.4%
Communications Equipment 1.9%
Cisco Systems, Inc. 581,300 28,280,245
F5 Networks, Inc.(a) 21,900 4,367,298
Total   32,647,543
Electronic Equipment, Instruments & Components 0.4%
Corning, Inc. 200,000 7,060,000
Internet Software & Services 2.8%
Alphabet, Inc., Class A(a) 8,100 9,777,348
Facebook, Inc., Class A(a) 155,200 25,524,192
VeriSign, Inc.(a) 85,500 13,690,260
Total   48,991,800
IT Services 2.2%
Automatic Data Processing, Inc. 30,000 4,519,800
MasterCard, Inc., Class A 101,600 22,617,176
Visa, Inc., Class A 69,700 10,461,273
Total   37,598,249
Semiconductors & Semiconductor Equipment 3.9%
Analog Devices, Inc. 81,600 7,544,736
Broadcom, Inc. 61,000 15,050,530
Intel Corp. 235,000 11,113,150
KLA-Tencor Corp. 52,500 5,339,775
Lam Research Corp. 40,000 6,068,000
Maxim Integrated Products, Inc. 70,000 3,947,300
QUALCOMM, Inc. 242,900 17,496,087
Texas Instruments, Inc. 9,700 1,040,713
Total   67,600,291
Common Stocks (continued)
Issuer Shares Value ($)
Software 3.9%
Adobe Systems, Inc.(a) 74,700 20,165,265
Microsoft Corp. 344,600 39,411,902
VMware, Inc., Class A(a) 44,200 6,897,852
Total   66,475,019
Technology Hardware, Storage & Peripherals 2.3%
Apple, Inc. 108,450 24,481,503
HP, Inc. 158,300 4,079,391
NetApp, Inc. 67,400 5,788,986
Western Digital Corp. 75,000 4,390,500
Total   38,740,380
Total Information Technology 299,113,282
Materials 1.1%
Chemicals 1.0%
Eastman Chemical Co. 39,700 3,800,084
LyondellBasell Industries NV, Class A 141,500 14,505,165
Total   18,305,249
Metals & Mining 0.1%
Freeport-McMoRan, Inc. 87,300 1,215,216
Total Materials 19,520,465
Real Estate 2.1%
Equity Real Estate Investment Trusts (REITS) 2.1%
Alexandria Real Estate Equities, Inc. 52,500 6,603,975
American Tower Corp. 31,600 4,591,480
Equinix, Inc. 15,000 6,493,350
Host Hotels & Resorts, Inc. 613,000 12,934,300
Simon Property Group, Inc. 27,200 4,807,600
Total   35,430,705
Total Real Estate 35,430,705
Telecommunication Services 1.3%
Diversified Telecommunication Services 1.3%
AT&T, Inc. 441,100 14,812,138
Verizon Communications, Inc. 154,800 8,264,772
Total   23,076,910
Total Telecommunication Services 23,076,910
 
Tri-Continental Corporation  | Quarterly Report 2018
 3

Portfolio of Investments   (continued)
Tri-Continental Corporation, September 30, 2018 (Unaudited)
Common Stocks (continued)
Issuer Shares Value ($)
Utilities 2.8%
Electric Utilities 0.9%
American Electric Power Co., Inc. 90,000 6,379,200
Edison International 95,000 6,429,600
Entergy Corp. 32,200 2,612,386
Total   15,421,186
Independent Power and Renewable Electricity Producers 1.3%
Clearway Energy, Inc., Class A 440,000 8,377,600
NRG Energy, Inc. 380,700 14,238,180
Total   22,615,780
Multi-Utilities 0.6%
CenterPoint Energy, Inc. 204,700 5,659,955
Public Service Enterprise Group, Inc. 87,800 4,634,962
Total   10,294,917
Total Utilities 48,331,883
Total Common Stocks
(Cost $965,621,026) 		1,155,032,797
    
Convertible Bonds 8.2%
Issuer Coupon
Rate 		  Principal
Amount ($) 		Value ($)
Cable and Satellite 0.4%
DISH Network Corp.
08/15/2026 3.375%   7,000,000 6,676,362
Gaming 0.3%
Caesars Entertainment Corp.
10/01/2024 5.000%   2,800,000 4,560,044
Health Care 0.5%
Invacare Corp.
02/15/2021 5.000%   3,600,000 3,893,123
Novavax, Inc.
02/01/2023 3.750%   6,800,000 4,131,000
Total 8,024,123
Home Construction 0.4%
SunPower Corp.
01/15/2023 4.000%   7,500,000 6,275,137
Independent Energy 0.5%
Chesapeake Energy Corp.
09/15/2026 5.500%   8,500,000 8,395,849
12/15/2038 2.250%   10,000 9,525
Total 8,405,374
Convertible Bonds (continued)
Issuer Coupon
Rate 		  Principal
Amount ($) 		Value ($)
Life Insurance 0.3%
AXA SA(c)
05/15/2021 7.250%   4,100,000 4,400,817
Metals and Mining 0.2%
Endeavour Mining Corp.(c)
02/15/2023 3.000%   4,600,000 4,393,000
Oil Field Services 0.2%
Bristow Group, Inc.
06/01/2023 4.500%   3,658,000 3,683,606
Other Industry 0.2%
Green Plains, Inc.
09/01/2022 4.125%   4,600,000 4,399,923
Other REIT 0.9%
Blackstone Mortgage Trust, Inc.
05/05/2022 4.375%   5,000,000 4,987,930
IH Merger Sub LLC
01/15/2022 3.500%   5,800,000 6,374,670
New York Mortgage Trust, Inc.
01/15/2022 6.250%   4,300,000 4,281,239
Total 15,643,839
Pharmaceuticals 2.8%
Aegerion Pharmaceuticals, Inc.
08/15/2019 2.000%   5,000,000 3,746,265
Alder Biopharmaceuticals, Inc.
02/01/2025 2.500%   3,800,000 4,065,677
Clovis Oncology, Inc.
05/01/2025 1.250%   6,800,000 5,256,400
Dermira, Inc.
05/15/2022 3.000%   5,200,000 4,315,184
Fluidigm Corp.
02/01/2034 2.750%   4,000,000 4,135,736
Innoviva, Inc.
Subordinated
01/15/2023 2.125%   4,500,000 4,559,062
Insmed, Inc.
01/15/2025 1.750%   5,000,000 4,208,975
Intercept Pharmaceuticals, Inc.
07/01/2023 3.250%   6,500,000 6,569,062
PTC Therapeutics, Inc.
08/15/2022 3.000%   4,000,000 4,582,148
Radius Health, Inc.
09/01/2024 3.000%   5,700,000 4,354,612
 
4 Tri-Continental Corporation  | Quarterly Report 2018

Portfolio of Investments   (continued)
Tri-Continental Corporation, September 30, 2018 (Unaudited)
Convertible Bonds (continued)
Issuer Coupon
Rate 		  Principal
Amount ($) 		Value ($)
TESARO, Inc.
10/01/2021 3.000%   1,500,000 1,995,389
Total 47,788,510
Property & Casualty 0.6%
Heritage Insurance Holdings, Inc.
08/01/2037 5.875%   3,600,000 4,152,600
MGIC Investment Corp.(c),(d)
Junior Subordinated
04/01/2063 9.000%   4,711,000 6,314,450
Total 10,467,050
Retailers 0.2%
GNC Holdings, Inc.
08/15/2020 1.500%   5,700,000 4,389,000
Technology 0.5%
Microchip Technology, Inc.
Junior Subordinated
02/15/2037 2.250%   8,000,000 8,437,088
Transportation Services 0.2%
Aegean Marine Petroleum Network, Inc.
12/15/2021 4.250%   6,000,000 3,480,072
Total Convertible Bonds
(Cost $146,968,256) 		141,023,945
    
Convertible Preferred Stocks 6.5%
Issuer   Shares Value ($)
Consumer Staples 0.5%
Food Products 0.5%
Bunge Ltd. 4.875% 82,500 8,877,000
Total Consumer Staples 8,877,000
Energy 0.8%
Energy Equipment & Services 0.4%
Nabors Industries Ltd. 6.000% 145,000 6,400,300
Oil, Gas & Consumable Fuels 0.4%
Hess Corp. 8.000% 85,000 6,755,800
Total Energy 13,156,100
Financials 1.9%
Banks 1.0%
Bank of America Corp. 7.250% 6,700 8,671,475
Wells Fargo & Co. 7.500% 6,500 8,390,720
Total     17,062,195
Convertible Preferred Stocks (continued)
Issuer   Shares Value ($)
Capital Markets 0.7%
AMG Capital Trust II 5.150% 130,000 7,461,246
Cowen, Inc. 5.625% 5,200 4,605,432
Total     12,066,678
Insurance 0.2%
Assurant, Inc. 6.500% 40,000 4,502,400
Total Financials 33,631,273
Health Care 0.5%
Health Care Equipment & Supplies 0.5%
Becton Dickinson and Co. 6.125% 135,000 8,823,600
Total Health Care 8,823,600
Industrials 1.0%
Machinery 1.0%
Fortive Corp. 5.000% 6,000 6,398,811
Rexnord Corp. 5.750% 70,000 4,550,000
Stanley Black & Decker, Inc. 5.375% 52,500 5,754,525
Total     16,703,336
Total Industrials 16,703,336
Information Technology 0.5%
Electronic Equipment, Instruments & Components 0.5%
Belden, Inc. 6.750% 90,000 8,514,000
Total Information Technology 8,514,000
Real Estate 0.5%
Equity Real Estate Investment Trusts (REITS) 0.5%
Crown Castle International Corp. 6.875% 8,000 8,688,000
Total Real Estate 8,688,000
Utilities 0.8%
Multi-Utilities 0.8%
CenterPoint Energy, Inc. 7.000% 87,500 4,408,775
DTE Energy Co. 6.500% 167,500 8,663,100
Total     13,071,875
Total Utilities 13,071,875
Total Convertible Preferred Stocks
(Cost $106,097,966) 		111,465,184
 
Tri-Continental Corporation  | Quarterly Report 2018
 5

Portfolio of Investments   (continued)
Tri-Continental Corporation, September 30, 2018 (Unaudited)
Corporate Bonds & Notes 14.7%
Issuer Coupon
Rate 		  Principal
Amount ($) 		Value ($)
Brokerage/Asset Managers/Exchanges 0.5%
LPL Holdings, Inc.(c)
09/15/2025 5.750%   8,550,000 8,347,852
Cable and Satellite 0.8%
Charter Communications Operating LLC/Capital
10/23/2045 6.484%   8,000,000 8,602,040
Telesat Canada/LLC(c)
11/15/2024 8.875%   5,360,000 5,741,739
Total 14,343,779
Chemicals 0.5%
Starfruit Finco BV/US Holdco LLC(c),(e)
10/01/2026 8.000%   8,500,000 8,605,519
Consumer Products 0.5%
Mattel, Inc.(c)
12/31/2025 6.750%   8,742,000 8,567,282
Electric 0.5%
Covanta Holding Corp.
07/01/2025 5.875%   8,723,000 8,806,331
Finance Companies 1.4%
Fortress Transportation & Infrastructure Investors LLC(c)
10/01/2025 6.500%   6,500,000 6,455,735
iStar, Inc.
04/01/2022 6.000%   8,543,000 8,623,834
Springleaf Finance Corp.
03/15/2025 6.875%   8,400,000 8,378,404
Total 23,457,973
Food and Beverage 0.5%
Chobani LLC/Finance Corp., Inc.(c)
04/15/2025 7.500%   4,097,000 3,723,120
Lamb Weston Holdings, Inc.(c)
11/01/2026 4.875%   4,300,000 4,215,690
Total 7,938,810
Health Care 0.6%
Quotient Ltd.(c),(f),(g)
10/15/2023 12.000%   2,170,000 2,170,000
10/15/2023 12.000%   930,000 930,000
Surgery Center Holdings, Inc.(c)
07/01/2025 6.750%   6,800,000 6,520,677
Total 9,620,677
Healthcare Insurance 0.5%
Centene Corp.
01/15/2025 4.750%   8,455,000 8,436,238
Corporate Bonds & Notes (continued)
Issuer Coupon
Rate 		  Principal
Amount ($) 		Value ($)
Home Construction 0.2%
Lennar Corp.
11/29/2027 4.750%   4,400,000 4,226,165
Independent Energy 0.9%
Indigo Natural Resources LLC(c)
02/15/2026 6.875%   8,800,000 8,530,051
Talos Production LLC/Finance, Inc.(c)
04/03/2022 11.000%   6,136,177 6,565,710
Total 15,095,761
Lodging 0.2%
Marriott Ownership Resorts, Inc./ILG LLC(c)
09/15/2026 6.500%   4,232,000 4,342,506
Media and Entertainment 0.7%
Lions Gate Capital Holdings LLC(c)
11/01/2024 5.875%   8,050,000 8,248,199
Meredith Corp.(c)
02/01/2026 6.875%   4,100,000 4,200,503
Total 12,448,702
Metals and Mining 1.0%
CONSOL Energy, Inc.(c)
11/15/2025 11.000%   4,200,000 4,760,074
Constellium NV(c)
03/01/2025 6.625%   8,400,000 8,550,192
Warrior Met Coal, Inc.(c)
11/01/2024 8.000%   4,200,000 4,326,164
Total 17,636,430
Midstream 0.7%
Rockpoint Gas Storage Canada Ltd.(c)
03/31/2023 7.000%   4,216,000 4,277,393
Summit Midstream Partners LP(d)
Junior Subordinated
12/31/2049 9.500%   8,400,000 8,342,351
Total 12,619,744
Oil Field Services 0.5%
Bristow Group, Inc.(c)
03/01/2023 8.750%   4,200,000 4,098,713
SESI LLC
09/15/2024 7.750%   4,200,000 4,283,853
Total 8,382,566
Other Industry 0.4%
WeWork Companies, Inc.(c)
05/01/2025 7.875%   6,700,000 6,503,054
 
6 Tri-Continental Corporation  | Quarterly Report 2018

Portfolio of Investments   (continued)
Tri-Continental Corporation, September 30, 2018 (Unaudited)
Corporate Bonds & Notes (continued)
Issuer Coupon
Rate 		  Principal
Amount ($) 		Value ($)
Packaging 1.0%
BWAY Holding Co.(c)
04/15/2025 7.250%   8,800,000 8,591,598
Novolex (c)
01/15/2025 6.875%   8,490,000 8,129,600
Total 16,721,198
Pharmaceuticals 0.8%
Bausch Health Companies, Inc.(c)
01/31/2027 8.500%   8,300,000 8,716,502
Horizon Pharma, Inc.(c)
11/01/2024 8.750%   4,100,000 4,377,681
Total 13,094,183
Restaurants 0.2%
IRB Holding Corp.(c)
02/15/2026 6.750%   4,300,000 4,214,546
Retailers 0.1%
Rite Aid Corp.
Junior Subordinated
02/15/2027 7.700%   1,937,000 1,510,918
Supermarkets 0.4%
Safeway, Inc.
02/01/2031 7.250%   7,512,000 7,156,780
Technology 0.8%
Diebold, Inc.
04/15/2024 8.500%   8,100,000 5,809,012
Genesys Telecommunications Laboratories, Inc./Greeneden Lux 3 Sarl/U.S. Holdings I LLC(c)
11/30/2024 10.000%   3,750,000 4,154,141
Informatica LLC(c)
07/15/2023 7.125%   4,538,000 4,652,181
Total 14,615,334
Transportation Services 0.6%
Hertz Corp. (The)(c)
06/01/2022 7.625%   4,250,000 4,194,725
Hertz Corp. (The)
10/15/2022 6.250%   6,700,000 6,218,082
Total 10,412,807
Wirelines 0.4%
Frontier Communications Corp.
09/15/2025 11.000%   8,360,000 6,515,165
Total Corporate Bonds & Notes
(Cost $258,046,939) 		253,620,320
Limited Partnerships 0.5%
Issuer Shares Value ($)
Energy 0.3%
Oil, Gas & Consumable Fuels 0.3%
Enviva Partners LP 140,000 4,452,000
Total Energy 4,452,000
Industrials 0.2%
Trading Companies & Distributors 0.2%
Fortress Transportation & Infrastructure Investors LLC 235,000 4,272,300
Total Industrials 4,272,300
Total Limited Partnerships
(Cost $7,740,268) 		8,724,300
    
Preferred Debt 0.6%
Issuer Coupon
Rate 		  Shares Value ($)
Banking 0.4%
Citigroup Capital XIII(d)
10/30/2040 8.729%   237,500 6,376,875
Finance Companies 0.2%
GMAC Capital Trust I(d)
02/15/2040 8.099%   162,500 4,273,750
Total Preferred Debt
(Cost $10,336,267) 		10,650,625
    
Senior Loans 0.4%
Borrower Coupon
Rate 		  Principal
Amount ($) 		Value ($)
Oil Field Services 0.4%
BCP Raptor LLC/EagleClaw Midstream Ventures(h),(i)
Term Loan
3-month USD LIBOR + 4.250%
06/24/2024 		6.492%   7,903,950 7,775,511
Total Senior Loans
(Cost $7,841,485) 		7,775,511
    
Warrants —%
Issuer Shares Value ($)
Energy —%
Oil, Gas & Consumable Fuels —%
Goodrich Petroleum Corp.(a),(f),(g),(j) 11,283 0
Total Energy 0
Total Warrants
(Cost $—) 		0
 
Tri-Continental Corporation  | Quarterly Report 2018
 7

Portfolio of Investments   (continued)
Tri-Continental Corporation, September 30, 2018 (Unaudited)
Money Market Funds 1.8%
  Shares Value ($)
Columbia Short-Term Cash Fund, 2.112%(k),(l) 8,308,623 8,307,792
JPMorgan U.S. Government Money Market Fund, Agency Shares, 1.86%(k) 21,979,830 21,979,830
Total Money Market Funds
(Cost $30,287,622) 		30,287,622
Total Investments in Securities
(Cost: $1,532,939,829) 		1,718,580,304
Other Assets & Liabilities, Net   2,890,021
Net Assets 1,721,470,325
At September 30, 2018, securities and/or cash totaling $525,804 were pledged as collateral.
Investments in derivatives
Long futures contracts
Description Number of
contracts 		Expiration
date 		Trading
currency 		Notional
amount 		Value/Unrealized
appreciation ($) 		Value/Unrealized
depreciation ($)
S&P 500 E-mini 56 12/2018 USD 8,173,200 14,881 —
Notes to Portfolio of Investments
(a) Non-income producing investment.
(b) This security or a portion of this security has been pledged as collateral in connection with derivative contracts.
(c) Represents privately placed and other securities and instruments exempt from SEC registration (collectively, private placements), such as Section 4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. The Fund may invest in private placements determined to be liquid as well as those determined to be illiquid. Private placements may be determined to be liquid under guidelines established by the Fund’s Board of Directors. At September 30, 2018, the total value of these securities amounted to $181,819,414, which represents 10.56% of total net assets.
(d) Represents a variable rate security with a step coupon where the rate adjusts according to a schedule for a series of periods, typically lower for an initial period and then increasing to a higher coupon rate thereafter. The interest rate shown was the current rate as of September 30, 2018.
(e) Represents a security purchased on a when-issued basis.
(f) Represents fair value as determined in good faith under procedures approved by the Board of Trustees. At September 30, 2018, the total value of these securities amounted to $3,100,000, which represents 0.18% of total net assets.
(g) Valuation based on significant unobservable inputs.
(h) The stated interest rate represents the weighted average interest rate at September 30, 2018 of contracts within the senior loan facility. Interest rates on contracts are primarily determined either weekly, monthly or quarterly by reference to the indicated base lending rate and spread and the reset period. These base lending rates are primarily the London Interbank Offered Rate (“LIBOR”) and other short-term rates. Base lending rates may be subject to a floor or minimum rate. The interest rate for senior loans purchased on a when-issued or delayed delivery basis will be determined upon settlement, therefore no interest rate is disclosed. Senior loans often require prepayments from excess cash flows or permit the borrowers to repay at their election. The degree to which borrowers repay, cannot be predicted with accuracy. As a result, remaining maturities of senior loans may be less than the stated maturities.
(i) Variable rate security. The interest rate shown was the current rate as of September 30, 2018.
(j) Negligible market value.
(k) The rate shown is the seven-day current annualized yield at September 30, 2018.
8 Tri-Continental Corporation  | Quarterly Report 2018

Portfolio of Investments   (continued)
Tri-Continental Corporation, September 30, 2018 (Unaudited)
Notes to Portfolio of Investments  (continued)
(l) As defined in the Investment Company Act of 1940, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. Holdings and transactions in these affiliated companies during the period ended September 30, 2018 are as follows:
    
Issuer Beginning
shares 		Shares
purchased 		Shares
sold 		Ending
shares 		Realized gain
(loss) —
affiliated
issuers ($) 		Net change in
unrealized
appreciation
(depreciation) —
affiliated
issuers ($) 		Dividends —
affiliated
issuers ($) 		Value —
affiliated
issuers
at end of
period ($)
Columbia Short-Term Cash Fund, 2.112%
  13,847,965 83,081,756 (88,621,098) 8,308,623 113 (1,042) 94,277 8,307,792
Abbreviation Legend
ADR American Depositary Receipt
Currency Legend
USD US Dollar
Investments are valued using policies described in the Notes to Financial Statements in the most recent shareholder report.
Fair value measurements
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’s 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. 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 Investment Manager, 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.
Certain investments that have been measured at fair value using the net asset value (NAV) per share (or its equivalent) are not categorized in the fair value hierarchy. The fair value amounts presented in the table are intended to reconcile the fair value hierarchy to the amounts presented in the Portfolio of Investments. The Columbia Short-Term Cash Fund seeks to provide shareholders with maximum current income consistent with liquidity and stability of principal. Columbia Short-Term Cash Fund prices its shares with a floating NAV and no longer seeks to maintain a stable NAV.
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 may rely on one or more significant unobservable inputs and/or significant assumptions by the Investment Manager. 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.
Under the direction of the Fund’s Board of Directors (the Board), the Investment Manager’s Valuation Committee (the Committee) is responsible for overseeing the valuation procedures approved by the Board. The Committee consists of voting and non-voting members from various groups within the Investment Manager’s organization, including operations and accounting, trading and investments, compliance, risk management and legal.
The Committee meets at least monthly to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of Board-approved valuation control policies and procedures (the Policies). The Policies address, among other things, instances when market quotations are or are not readily available, including recommendations of third party pricing vendors and a determination of appropriate pricing methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale pricing, including those that are illiquid, restricted, or in default; and the effectiveness of third party pricing vendors, including periodic reviews of vendors. The Committee meets more frequently, as needed, to discuss
Tri-Continental Corporation  | Quarterly Report 2018
 9

Portfolio of Investments   (continued)
Tri-Continental Corporation, September 30, 2018 (Unaudited)
Fair value measurements  (continued)
additional valuation matters, which may include the need to review back-testing results, review time-sensitive information or approve related valuation actions. The Committee reports to the Board, with members of the Committee meeting with the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.
For investments categorized as Level 3, the Committee monitors information similar to that described above, which may include: (i) data specific to the issuer or comparable issuers, (ii) general market or specific sector news and (iii) quoted prices and specific or similar security transactions. The Committee considers this data and any changes from prior periods in order to assess the reasonableness of observable and unobservable inputs, any assumptions or internal models used to value those securities and changes in fair value. This data is also used to corroborate, when available, information received from approved pricing vendors and brokers. Various factors impact the frequency of monitoring this information (which may occur as often as daily). However, the Committee may determine that changes to inputs, assumptions and models are not required as a result of the monitoring procedures performed.
The following table is a summary of the inputs used to value the Fund’s investments at September 30, 2018:
  Level 1
quoted prices
in active
markets for
identical
assets ($) 		Level 2
other
significant
observable
inputs ($) 		Level 3
significant
unobservable
inputs ($) 		Investments
measured at
net asset
value ($) 		Total ($)
Investments in Securities          
Common Stocks          
Consumer Discretionary 132,329,472 — — — 132,329,472
Consumer Staples 77,253,536 — — — 77,253,536
Energy 66,984,788 — — — 66,984,788
Financials 177,073,395 — — — 177,073,395
Health Care 170,668,398 — — — 170,668,398
Industrials 105,249,963 — — — 105,249,963
Information Technology 299,113,282 — — — 299,113,282
Materials 19,520,465 — — — 19,520,465
Real Estate 35,430,705 — — — 35,430,705
Telecommunication Services 23,076,910 — — — 23,076,910
Utilities 48,331,883 — — — 48,331,883
Total Common Stocks 1,155,032,797 — — — 1,155,032,797
Convertible Bonds — 141,023,945 — — 141,023,945
Convertible Preferred Stocks          
Consumer Staples — 8,877,000 — — 8,877,000
Energy 13,156,100 — — — 13,156,100
Financials 21,564,595 12,066,678 — — 33,631,273
Health Care 8,823,600 — — — 8,823,600
Industrials 10,304,525 6,398,811 — — 16,703,336
Information Technology 8,514,000 — — — 8,514,000
Real Estate 8,688,000 — — — 8,688,000
Utilities 8,663,100 4,408,775 — — 13,071,875
Total Convertible Preferred Stocks 79,713,920 31,751,264 — — 111,465,184
Corporate Bonds & Notes — 250,520,320 3,100,000 — 253,620,320
Limited Partnerships          
Energy 4,452,000 — — — 4,452,000
Industrials 4,272,300 — — — 4,272,300
Total Limited Partnerships 8,724,300 — — — 8,724,300
Preferred Debt 10,650,625 — — — 10,650,625
Senior Loans — 7,775,511 — — 7,775,511
Warrants          
Energy — — 0* — 0*
Money Market Funds 21,979,830 — — 8,307,792 30,287,622
Total Investments in Securities 1,276,101,472 431,071,040 3,100,000 8,307,792 1,718,580,304
Investments in Derivatives          
Asset          
Futures Contracts 14,881 — — — 14,881
Total 1,276,116,353 431,071,040 3,100,000 8,307,792 1,718,595,185
    
10 Tri-Continental Corporation  | Quarterly Report 2018

Portfolio of Investments   (continued)
Tri-Continental Corporation, September 30, 2018 (Unaudited)
Fair value measurements  (continued)
* Rounds to zero.
See the Portfolio of Investments for all investment classifications not indicated in the table.
The Fund’s assets assigned to the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical assets.
Derivative instruments are valued at unrealized appreciation (depreciation).
There were no transfers of financial assets between levels during the period.
The Fund’s assets assigned to the Level 3 category are valued utilizing the valuation technique deemed the most appropriate in the circumstances.
Warrants classified as Level 3 are valued using an income approach. To determine fair value for these securities, management considered estimates of future distributions from the liquidation of the company assets. Significant increases (decreases) to any of these inputs would result in a significantly higher (lower) fair value measurement.
Certain corporate bonds classified as Level 3 securities are valued using the market approach and utilize single market quotations from broker dealers which may have included, but were not limited to, observable transactions for identical or similar assets in the market and the distressed nature of the security. The appropriateness of fair values for these securities is monitored on an ongoing basis which may include results of back testing, manual price reviews and other control procedures. Significant increases (decreases) to any of these inputs would result in a significantly higher (lower) valuation measurement.
Tri-Continental Corporation  | Quarterly Report 2018
 11

Item 2. Controls 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 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)

   

Tri-Continental Corporation

   

By (Signature and Title)

   

/s/ Christopher O. Petersen

   
  

Christopher O. Petersen, President and Principal Executive Officer

   

Date

   

 November 20, 2018

   

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 (Signature and Title)

   

/s/ Christopher O. Petersen

   
  

 Christopher O. Petersen, President and Principal Executive Officer

   

 

Date

   

 November 20, 2018

   

 

By (Signature and Title)

   

/s/ Michael G. Clarke

   
  

Michael G. Clarke, Treasurer and Chief Financial Officer

   

 

Date

   

 November 20, 2018