Columbia Funds Variable Series Trust II

09/05/2024 | Press release | Distributed by Public on 09/05/2024 09:38

Semi Annual Report by Investment Company Form N CSRS

8dcc6b97792fa55
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number
811-22127
Columbia Funds Variable Series Trust II
(Exact name of registrant as specified in charter)
290 Congress Street
Boston, MA 02210
(Address of principal executive offices) (Zip code)

Daniel J. Beckman
c/o Columbia Management Investment Advisers, LLC
290 Congress Street
Boston, MA 02210

Ryan C. Larrenaga, Esq.
c/o Columbia Management Investment Advisers, LLC
290 Congress Street
Boston, MA 02210

(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:
June 30, 2024
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders
Columbia Variable Portfolio - Large Cap Index Fund
Class 1
Semiannual Shareholder Report | June 30, 2024
This
semiannual shareholder report
contains important information about Columbia Variable Portfolio - Large Cap Index Fund (the Fund) for the period of January 1, 2024 to June 30, 2024.You can find additional information about the Fund at
columbiathreadneedleus.com/resources/literature
. You can also request more information by contacting us at
1-800-345-6611.
What were the Fund costs for the reporting period?
(Based on a hypothetical $10,000 investment)
Class Costs of a $10,000 investment Costs paid as a percentage of a $10,000 investment
Class 1
$
13 		0.25%
Key Fund Statistics
Fund net assets
$
2,112,107,564
Total number of portfolio holdings 505
Portfolio turnover for the reporting period 1%
Graphical Representation of FundHoldings
The tables below show the investment makeup of the Fund represented as a percentage of Fund net assets. Derivatives are excluded from the tables unless otherwise noted. The Fund's portfolio composition is subject to change.
Top Holdings
Microsoft Corp. 7.2%
NVIDIA Corp. 6.6%
Apple, Inc. 6.6%
Amazon.com, Inc. 3.8%
Meta Platforms, Inc., Class A 2.4%
Alphabet, Inc., Class A 2.3%
Alphabet, Inc., Class C 1.9%
Berkshire Hathaway, Inc., Class B 1.6%
Eli Lilly & Co. 1.6%
Broadcom, Inc. 1.5%
Asset Categories
Equity Sector Allocation
Availability of Additional Information
For additional information about the Fund: including its prospectus, financial information, holdings, federal tax information and proxy voting information, visit the Fund's website included at the beginning of this report.
Columbia Variable funds are distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2024 Columbia Management Investment Distributors, Inc.
Not FDIC or NCUA Insured • No Financial Institution Guarantee • May Lose Value
Columbia Variable Portfolio - Large Cap Index Fund
Class 2
Semiannual Shareholder Report | June 30, 2024
This
semiannual shareholder report
contains important information about Columbia Variable Portfolio - Large Cap Index Fund (the Fund) for the period of January 1, 2024 to June 30, 2024.You can find additional information about the Fund at
columbiathreadneedleus.com/resources/literature
. You can also request more information by contacting us at
1-800-345-6611.
What were the Fund costs for the reporting period?
(Based on a hypothetical $10,000 investment)
Class Costs of a $10,000 investment Costs paid as a percentage of a $10,000 investment
Class 2
$
27 		0.50%
Key Fund Statistics
Fund net assets
$
2,112,107,564
Total number of portfolio holdings 505
Portfolio turnover for the reporting period 1%
Graphical Representation of FundHoldings
The tables below show the investment makeup of the Fund represented as a percentage of Fund net assets. Derivatives are excluded from the tables unless otherwise noted. The Fund's portfolio composition is subject to change.
Top Holdings
Microsoft Corp. 7.2%
NVIDIA Corp. 6.6%
Apple, Inc. 6.6%
Amazon.com, Inc. 3.8%
Meta Platforms, Inc., Class A 2.4%
Alphabet, Inc., Class A 2.3%
Alphabet, Inc., Class C 1.9%
Berkshire Hathaway, Inc., Class B 1.6%
Eli Lilly & Co. 1.6%
Broadcom, Inc. 1.5%
Asset Categories
Equity Sector Allocation
Availability of Additional Information
For additional information about the Fund: including its prospectus, financial information, holdings, federal tax information and proxy voting information, visit the Fund's website included at the beginning of this report.
Columbia Variable funds are distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2024 Columbia Management Investment Distributors, Inc.
Not FDIC or NCUA Insured • No Financial Institution Guarantee • May Lose Value
Columbia Variable Portfolio - Large Cap Index Fund
Class 3
Semiannual Shareholder Report | June 30, 2024
This
semiannual shareholder report
contains important information about Columbia Variable Portfolio - Large Cap Index Fund (the Fund) for the period of January 1, 2024 to June 30, 2024.You can find additional information about the Fund at
columbiathreadneedleus.com/resources/literature
. You can also request more information by contacting us at
1-800-345-6611.
What were the Fund costs for the reporting period?
(Based on a hypothetical $10,000 investment)
Class Costs of a $10,000 investment Costs paid as a percentage of a $10,000 investment
Class 3
$
20 		0.38%
Key Fund Statistics
Fund net assets
$
2,112,107,564
Total number of portfolio holdings 505
Portfolio turnover for the reporting period 1%
Graphical Representation of FundHoldings
The tables below show the investment makeup of the Fund represented as a percentage of Fund net assets. Derivatives are excluded from the tables unless otherwise noted. The Fund's portfolio composition is subject to change.
Top Holdings
Microsoft Corp. 7.2%
NVIDIA Corp. 6.6%
Apple, Inc. 6.6%
Amazon.com, Inc. 3.8%
Meta Platforms, Inc., Class A 2.4%
Alphabet, Inc., Class A 2.3%
Alphabet, Inc., Class C 1.9%
Berkshire Hathaway, Inc., Class B 1.6%
Eli Lilly & Co. 1.6%
Broadcom, Inc. 1.5%
Asset Categories
Equity Sector Allocation
Availability of Additional Information
For additional information about the Fund: including its prospectus, financial information, holdings, federal tax information and proxy voting information, visit the Fund's website included at the beginning of this report.
Columbia Variable funds are distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2024 Columbia Management Investment Distributors, Inc.
Not FDIC or NCUA Insured • No Financial Institution Guarantee • May Lose Value

Item 2. Code of Ethics.

Not applicable.



Item 3. Audit Committee Financial Expert.

Not applicable.



Item 4. Principal Accountant Fees and Services.

Not applicable.



Item 5. Audit Committee of Listed Registrants.

Not applicable.



Item 6. Investments.

(a) The registrant's "Schedule I - Investments in securities of unaffiliated issuers" (as set forth in 17 CFR 210.12-12) is included in Item 7 of this Form N-CSR.

(b) Not applicable.



Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.



Columbia Variable Portfolio - Large Cap Index Fund
Semiannual Financial Statements and Additional Information
June 30, 2024 (Unaudited)
Please remember that you may not buy (nor will you own) shares of the Fund directly. The Fund is available through variable annuity contracts and variable life insurance policies offered by the separate accounts of participating insurance companies as well as qualified pension and retirement plans. Please contact your financial advisor or insurance representative for more information.
Not FDIC or NCUA Insured
No Financial Institution Guarantee
May Lose Value
Table of Contents
Portfolio of Investments
3
Statement of Assets and Liabilities
14
Statement of Operations
15
Statement of Changes in Net Assets
16
Financial Highlights
18
Notes to Financial Statements
20
Approval of Management Agreement
29
Columbia Variable Portfolio - Large Cap Index Fund | 2024
Portfolio of InvestmentsJune 30, 2024 (Unaudited)
(Percentages represent value of investments compared to net assets)
Investments in securities
Common Stocks 99.3%
Issuer
Shares
Value ($)
Communication Services 9.3%
Diversified Telecommunication Services 0.7%
AT&T, Inc.
327,858
6,265,366
Verizon Communications, Inc.
192,469
7,937,422
Total
14,202,788
Entertainment 1.2%
Electronic Arts, Inc.
11,124
1,549,907
Live Nation Entertainment, Inc.(a)
6,513
610,529
Netflix, Inc.(a)
19,703
13,297,161
Take-Two Interactive Software, Inc.(a)
7,261
1,129,013
Walt Disney Co. (The)
83,360
8,276,814
Warner Bros Discovery, Inc.(a)
101,957
758,560
Total
25,621,984
Interactive Media & Services 6.7%
Alphabet, Inc., Class A
268,589
48,923,486
Alphabet, Inc., Class C
223,449
40,985,016
Match Group, Inc.(a)
12,148
369,056
Meta Platforms, Inc., Class A
100,204
50,524,861
Total
140,802,419
Media 0.5%
Charter Communications, Inc., Class A(a)
4,478
1,338,743
Comcast Corp., Class A
178,976
7,008,700
Fox Corp., Class A
10,569
363,257
Fox Corp., Class B
6,032
193,145
Interpublic Group of Companies, Inc. (The)
17,258
502,035
News Corp., Class A
17,339
478,036
News Corp., Class B
5,231
148,508
Omnicom Group, Inc.
8,955
803,263
Paramount Global, Class B
22,605
234,866
Total
11,070,553
Wireless Telecommunication Services 0.2%
T-Mobile US, Inc.
23,577
4,153,796
Total Communication Services
195,851,540
Common Stocks (continued)
Issuer
Shares
Value ($)
Consumer Discretionary 9.9%
Automobile Components 0.1%
Aptiv PLC(a)
12,440
876,025
BorgWarner, Inc.
10,418
335,876
Total
1,211,901
Automobiles 1.4%
Ford Motor Co.
179,310
2,248,547
General Motors Co.
52,170
2,423,818
Tesla, Inc.(a)
126,869
25,104,838
Total
29,777,203
Broadline Retail 3.9%
Amazon.com, Inc.(a)
418,743
80,922,085
eBay, Inc.
23,137
1,242,920
Etsy, Inc.(a)
5,347
315,366
Total
82,480,371
Distributors 0.1%
Genuine Parts Co.
6,369
880,960
LKQ Corp.
12,198
507,315
Pool Corp.
1,753
538,749
Total
1,927,024
Hotels, Restaurants & Leisure 1.9%
Airbnb, Inc., Class A(a)
20,188
3,061,106
Booking Holdings, Inc.
1,551
6,144,286
Caesars Entertainment, Inc.(a)
9,896
393,267
Carnival Corp.(a)
46,186
864,602
Chipotle Mexican Grill, Inc.(a)
62,800
3,934,420
Darden Restaurants, Inc.
5,458
825,905
Domino's Pizza, Inc.
1,595
823,546
Expedia Group, Inc.(a)
5,805
731,372
Hilton Worldwide Holdings, Inc.
11,433
2,494,681
Las Vegas Sands Corp.
16,693
738,665
Marriott International, Inc., Class A
10,970
2,652,217
McDonald's Corp.
32,953
8,397,743
MGM Resorts International(a)
11,474
509,905
Norwegian Cruise Line Holdings Ltd.(a)
19,618
368,622
Royal Caribbean Cruises Ltd.(a)
10,826
1,725,989
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Variable Portfolio - Large Cap Index Fund | 2024
3
Portfolio of Investments(continued)June 30, 2024 (Unaudited)
Common Stocks (continued)
Issuer
Shares
Value ($)
Starbucks Corp.
51,793
4,032,085
Wynn Resorts Ltd.
4,318
386,461
Yum! Brands, Inc.
12,878
1,705,820
Total
39,790,692
Household Durables 0.3%
D.R. Horton, Inc.
13,552
1,909,883
Garmin Ltd.
7,026
1,144,676
Lennar Corp., Class A
11,196
1,677,945
Mohawk Industries, Inc.(a)
2,424
275,342
NVR, Inc.(a)
143
1,085,164
PulteGroup, Inc.
9,618
1,058,942
Total
7,151,952
Leisure Products 0.0%
Hasbro, Inc.
5,984
350,064
Specialty Retail 1.8%
AutoZone, Inc.(a)
791
2,344,603
Bath & Body Works, Inc.
10,227
399,364
Best Buy Co., Inc.
8,805
742,174
CarMax, Inc.(a)
7,197
527,828
Home Depot, Inc. (The)
45,315
15,599,236
Lowe's Companies, Inc.
26,164
5,768,115
O'Reilly Automotive, Inc.(a)
2,693
2,843,970
Ross Stores, Inc.
15,332
2,228,046
TJX Companies, Inc. (The)
51,784
5,701,418
Tractor Supply Co.
4,930
1,331,100
Ulta Beauty, Inc.(a)
2,192
845,827
Total
38,331,681
Textiles, Apparel & Luxury Goods 0.4%
Deckers Outdoor Corp.(a)
1,174
1,136,373
lululemon athletica, Inc.(a)
5,239
1,564,889
NIKE, Inc., Class B
55,394
4,175,046
Ralph Lauren Corp.
1,785
312,482
Tapestry, Inc.
10,506
449,552
Total
7,638,342
Total Consumer Discretionary
208,659,230
Common Stocks (continued)
Issuer
Shares
Value ($)
Consumer Staples 5.7%
Beverages 1.3%
Brown-Forman Corp., Class B
8,185
353,510
Coca-Cola Co. (The)
177,284
11,284,127
Constellation Brands, Inc., Class A
7,362
1,894,095
Keurig Dr. Pepper, Inc.
47,727
1,594,082
Molson Coors Beverage Co., Class B
8,314
422,601
Monster Beverage Corp.(a)
32,432
1,619,978
PepsiCo, Inc.
62,862
10,367,830
Total
27,536,223
Consumer Staples Distribution & Retail 1.9%
Costco Wholesale Corp.
20,279
17,236,947
Dollar General Corp.
10,044
1,328,118
Dollar Tree, Inc.(a)
9,476
1,011,753
Kroger Co. (The)
30,608
1,528,258
Sysco Corp.
22,770
1,625,550
Target Corp.
21,154
3,131,638
Walgreens Boots Alliance, Inc.
32,742
396,015
Walmart, Inc.
195,323
13,225,320
Total
39,483,599
Food Products 0.7%
Archer-Daniels-Midland Co.
22,608
1,366,654
Bunge Global SA
6,474
691,229
Campbell Soup Co.
8,996
406,529
ConAgra Foods, Inc.
21,859
621,233
General Mills, Inc.
25,814
1,632,994
Hershey Co. (The)
6,750
1,240,852
Hormel Foods Corp.
13,273
404,694
JM Smucker Co. (The)
4,855
529,389
Kellanova
12,037
694,294
Kraft Heinz Co. (The)
36,091
1,162,852
Lamb Weston Holdings, Inc.
6,602
555,096
McCormick & Co., Inc.
11,511
816,590
Mondelez International, Inc., Class A
61,334
4,013,697
Tyson Foods, Inc., Class A
13,078
747,277
Total
14,883,380
The accompanying Notes to Financial Statements are an integral part of this statement.
4
Columbia Variable Portfolio - Large Cap Index Fund | 2024
Portfolio of Investments(continued)June 30, 2024 (Unaudited)
Common Stocks (continued)
Issuer
Shares
Value ($)
Household Products 1.2%
Church & Dwight Co., Inc.
11,181
1,159,246
Clorox Co. (The)
5,679
775,013
Colgate-Palmolive Co.
37,515
3,640,456
Kimberly-Clark Corp.
15,396
2,127,727
Procter & Gamble Co. (The)
107,917
17,797,672
Total
25,500,114
Personal Care Products 0.1%
Estee Lauder Companies, Inc. (The), Class A
10,655
1,133,692
Kenvue, Inc.
87,555
1,591,750
Total
2,725,442
Tobacco 0.5%
Altria Group, Inc.
78,539
3,577,451
Philip Morris International, Inc.
71,082
7,202,739
Total
10,780,190
Total Consumer Staples
120,908,948
Energy 3.6%
Energy Equipment & Services 0.3%
Baker Hughes Co.
45,634
1,604,948
Halliburton Co.
40,480
1,367,415
Schlumberger NV
65,357
3,083,543
Total
6,055,906
Oil, Gas & Consumable Fuels 3.3%
APA Corp.
16,464
484,700
Chevron Corp.
78,372
12,258,948
ConocoPhillips Co.
53,477
6,116,699
Coterra Energy, Inc.
34,030
907,580
Devon Energy Corp.
28,898
1,369,765
Diamondback Energy, Inc.
8,155
1,632,549
EOG Resources, Inc.
26,279
3,307,738
EQT Corp.
20,192
746,700
Exxon Mobil Corp.
205,120
23,613,414
Hess Corp.
12,638
1,864,358
Kinder Morgan, Inc.
88,289
1,754,302
Marathon Oil Corp.
25,791
739,428
Marathon Petroleum Corp.
16,110
2,794,763
Occidental Petroleum Corp.
30,406
1,916,490
ONEOK, Inc.
26,687
2,176,325
Common Stocks (continued)
Issuer
Shares
Value ($)
Phillips 66
19,385
2,736,581
Targa Resources Corp.
10,138
1,305,572
Valero Energy Corp.
14,952
2,343,876
Williams Companies, Inc. (The)
55,728
2,368,440
Total
70,438,228
Total Energy
76,494,134
Financials 12.3%
Banks 3.2%
Bank of America Corp.
311,101
12,372,487
Citigroup, Inc.
87,218
5,534,854
Citizens Financial Group, Inc.
20,806
749,640
Fifth Third Bancorp
31,278
1,141,334
Huntington Bancshares, Inc.
66,267
873,399
JPMorgan Chase & Co.
131,307
26,558,154
KeyCorp
43,112
612,622
M&T Bank Corp.
7,629
1,154,726
PNC Financial Services Group, Inc. (The)
18,194
2,828,803
Regions Financial Corp.
41,876
839,195
Truist Financial Corp.
61,186
2,377,076
U.S. Bancorp
71,352
2,832,674
Wells Fargo & Co.
159,412
9,467,479
Total
67,342,443
Capital Markets 2.8%
Ameriprise Financial, Inc.(b)
4,542
1,940,297
Bank of New York Mellon Corp. (The)
34,194
2,047,879
BlackRock, Inc.
6,387
5,028,613
Blackstone, Inc.
32,677
4,045,413
Cboe Global Markets, Inc.
4,808
817,648
Charles Schwab Corp. (The)
68,264
5,030,374
CME Group, Inc.
16,464
3,236,822
FactSet Research Systems, Inc.
1,743
711,615
Franklin Resources, Inc.
13,712
306,463
Goldman Sachs Group, Inc. (The)
14,745
6,669,458
Intercontinental Exchange, Inc.
26,227
3,590,214
Invesco Ltd.
20,569
307,712
KKR & Co., Inc., Class A
30,432
3,202,664
MarketAxess Holdings, Inc.
1,733
347,519
Moody's Corp.
7,180
3,022,277
Morgan Stanley
57,219
5,561,115
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Variable Portfolio - Large Cap Index Fund | 2024
5
Portfolio of Investments(continued)June 30, 2024 (Unaudited)
Common Stocks (continued)
Issuer
Shares
Value ($)
MSCI, Inc.
3,623
1,745,380
Nasdaq, Inc.
17,399
1,048,464
Northern Trust Corp.
9,355
785,633
Raymond James Financial, Inc.
8,530
1,054,393
S&P Global, Inc.
14,637
6,528,102
State Street Corp.
13,775
1,019,350
T. Rowe Price Group, Inc.
10,210
1,177,315
Total
59,224,720
Consumer Finance 0.5%
American Express Co.
25,983
6,016,364
Capital One Financial Corp.
17,472
2,418,998
Discover Financial Services
11,459
1,498,952
Synchrony Financial
18,361
866,455
Total
10,800,769
Financial Services 3.8%
Berkshire Hathaway, Inc., Class B(a)
82,779
33,674,497
Corpay, Inc.(a)
3,213
855,975
Fidelity National Information Services, Inc.
25,435
1,916,782
Fiserv, Inc.(a)
26,754
3,987,416
Global Payments, Inc.
11,671
1,128,586
Jack Henry & Associates, Inc.
3,333
553,345
MasterCard, Inc., Class A
37,540
16,561,146
PayPal Holdings, Inc.(a)
47,831
2,775,633
Visa, Inc., Class A
71,978
18,892,066
Total
80,345,446
Insurance 2.0%
Aflac, Inc.
23,644
2,111,646
Allstate Corp. (The)
12,068
1,926,777
American International Group, Inc.
30,346
2,252,887
Aon PLC, Class A
9,942
2,918,772
Arch Capital Group Ltd.(a)
17,100
1,725,219
Arthur J Gallagher & Co.
9,991
2,590,766
Assurant, Inc.
2,377
395,176
Brown & Brown, Inc.
10,826
967,953
Chubb Ltd.
18,567
4,736,070
Cincinnati Financial Corp.
7,159
845,478
Everest Group Ltd.
1,987
757,087
Globe Life, Inc.
3,839
315,873
Common Stocks (continued)
Issuer
Shares
Value ($)
Hartford Financial Services Group, Inc. (The)
13,523
1,359,602
Loews Corp.
8,302
620,491
Marsh & McLennan Companies, Inc.
22,530
4,747,522
MetLife, Inc.
27,314
1,917,170
Principal Financial Group, Inc.
9,860
773,517
Progressive Corp. (The)
26,781
5,562,682
Prudential Financial, Inc.
16,415
1,923,674
Travelers Companies, Inc. (The)
10,471
2,129,173
Willis Towers Watson PLC
4,675
1,225,504
WR Berkley Corp.
9,235
725,686
Total
42,528,725
Total Financials
260,242,103
Health Care 11.6%
Biotechnology 1.9%
AbbVie, Inc.
80,744
13,849,211
Amgen, Inc.
24,529
7,664,086
Biogen, Inc.(a)
6,657
1,543,226
Gilead Sciences, Inc.
56,967
3,908,506
Incyte Corp.(a)
7,270
440,707
Moderna, Inc.(a)
15,246
1,810,463
Regeneron Pharmaceuticals, Inc.(a)
4,850
5,097,495
Vertex Pharmaceuticals, Inc.(a)
11,799
5,530,427
Total
39,844,121
Health Care Equipment & Supplies 2.3%
Abbott Laboratories
79,546
8,265,625
Align Technology, Inc.(a)
3,201
772,817
Baxter International, Inc.
23,301
779,419
Becton Dickinson & Co.
13,215
3,088,478
Boston Scientific Corp.(a)
67,224
5,176,920
Cooper Cos, Inc. (The)
9,088
793,382
DexCom, Inc.(a)
18,184
2,061,702
Edwards Lifesciences Corp.(a)
27,554
2,545,163
GE HealthCare Technologies, Inc.
19,411
1,512,505
Hologic, Inc.(a)
10,671
792,322
IDEXX Laboratories, Inc.(a)
3,776
1,839,667
Insulet Corp.(a)
3,203
646,365
Intuitive Surgical, Inc.(a)
16,219
7,215,022
Medtronic PLC
60,716
4,778,956
ResMed, Inc.
6,717
1,285,768
The accompanying Notes to Financial Statements are an integral part of this statement.
6
Columbia Variable Portfolio - Large Cap Index Fund | 2024
Portfolio of Investments(continued)June 30, 2024 (Unaudited)
Common Stocks (continued)
Issuer
Shares
Value ($)
Solventum Corp.(a)
6,318
334,096
STERIS PLC
4,518
991,882
Stryker Corp.
15,503
5,274,896
Teleflex, Inc.
2,154
453,051
Zimmer Biomet Holdings, Inc.
9,407
1,020,942
Total
49,628,978
Health Care Providers & Services 2.4%
Cardinal Health, Inc.
11,137
1,094,990
Cencora, Inc.
7,570
1,705,521
Centene Corp.(a)
24,402
1,617,853
Cigna Group (The)
12,989
4,293,774
CVS Health Corp.
57,402
3,390,162
DaVita, Inc.(a)
2,366
327,857
Elevance Health, Inc.
10,627
5,758,346
HCA Healthcare, Inc.
8,862
2,847,183
Henry Schein, Inc.(a)
5,855
375,305
Humana, Inc.
5,510
2,058,811
Labcorp Holdings, Inc.
3,854
784,328
McKesson Corp.
5,944
3,471,534
Molina Healthcare, Inc.(a)
2,679
796,467
Quest Diagnostics, Inc.
5,080
695,350
UnitedHealth Group, Inc.
42,085
21,432,207
Universal Health Services, Inc., Class B
2,729
504,674
Total
51,154,362
Life Sciences Tools & Services 1.2%
Agilent Technologies, Inc.
13,400
1,737,042
Bio-Rad Laboratories, Inc., Class A(a)
933
254,812
Bio-Techne Corp.
7,206
516,310
Charles River Laboratories International, Inc.(a)
2,355
486,496
Danaher Corp.
30,143
7,531,229
IQVIA Holdings, Inc.(a)
8,331
1,761,507
Mettler-Toledo International, Inc.(a)
977
1,365,445
Revvity, Inc.
5,642
591,620
Thermo Fisher Scientific, Inc.
17,454
9,652,062
Waters Corp.(a)
2,712
786,805
West Pharmaceutical Services, Inc.
3,331
1,097,198
Total
25,780,526
Common Stocks (continued)
Issuer
Shares
Value ($)
Pharmaceuticals 3.8%
Bristol-Myers Squibb Co.
92,689
3,849,374
Catalent, Inc.(a)
8,275
465,303
Eli Lilly & Co.
36,504
33,049,992
Johnson & Johnson
110,046
16,084,323
Merck & Co., Inc.
115,813
14,337,649
Pfizer, Inc.
259,106
7,249,786
Viatris, Inc.
54,444
578,740
Zoetis, Inc.
20,864
3,616,983
Total
79,232,150
Total Health Care
245,640,137
Industrials 8.1%
Aerospace & Defense 1.8%
Axon Enterprise, Inc.(a)
3,244
954,515
Boeing Co. (The)(a)
26,386
4,802,516
General Dynamics Corp.
10,396
3,016,295
General Electric Co.
50,051
7,956,608
Howmet Aerospace, Inc.
17,731
1,376,458
Huntington Ingalls Industries, Inc.
1,803
444,133
L3Harris Technologies, Inc.
8,673
1,947,782
Lockheed Martin Corp.
9,764
4,560,764
Northrop Grumman Corp.
6,361
2,773,078
RTX Corp.
60,792
6,102,909
Textron, Inc.
8,720
748,699
TransDigm Group, Inc.
2,559
3,269,404
Total
37,953,161
Air Freight & Logistics 0.4%
CH Robinson Worldwide, Inc.
5,354
471,794
Expeditors International of Washington, Inc.
6,459
806,019
FedEx Corp.
10,352
3,103,944
United Parcel Service, Inc., Class B
33,352
4,564,221
Total
8,945,978
Building Products 0.5%
Allegion PLC
3,998
472,364
AO Smith Corp.
5,523
451,671
Builders FirstSource, Inc.(a)
5,581
772,466
Carrier Global Corp.
38,315
2,416,910
Johnson Controls International PLC
30,804
2,047,542
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Variable Portfolio - Large Cap Index Fund | 2024
7
Portfolio of Investments(continued)June 30, 2024 (Unaudited)
Common Stocks (continued)
Issuer
Shares
Value ($)
Masco Corp.
10,071
671,434
Trane Technologies PLC
10,350
3,404,425
Total
10,236,812
Commercial Services & Supplies 0.6%
Cintas Corp.
3,943
2,761,125
Copart, Inc.(a)
40,006
2,166,725
Republic Services, Inc.
9,360
1,819,023
Rollins, Inc.
12,842
626,561
Veralto Corp.
10,046
959,092
Waste Management, Inc.
16,689
3,560,431
Total
11,892,957
Construction & Engineering 0.1%
Quanta Services, Inc.
6,694
1,700,878
Electrical Equipment 0.7%
AMETEK, Inc.
10,584
1,764,459
Eaton Corp. PLC
18,281
5,732,007
Emerson Electric Co.
26,159
2,881,675
GE Vernova, Inc.(a)
12,533
2,149,535
Generac Holdings, Inc.(a)
2,772
366,514
Hubbell, Inc.
2,455
897,253
Rockwell Automation, Inc.
5,213
1,435,035
Total
15,226,478
Ground Transportation 1.0%
CSX Corp.
89,389
2,990,062
JB Hunt Transport Services, Inc.
3,728
596,480
Norfolk Southern Corp.
10,330
2,217,748
Old Dominion Freight Line, Inc.
8,147
1,438,760
Uber Technologies, Inc.(a)
95,544
6,944,138
Union Pacific Corp.
27,898
6,312,201
Total
20,499,389
Industrial Conglomerates 0.4%
3M Co.
25,302
2,585,611
Honeywell International, Inc.
29,776
6,358,367
Total
8,943,978
Common Stocks (continued)
Issuer
Shares
Value ($)
Machinery 1.6%
Caterpillar, Inc.
22,362
7,448,782
Cummins, Inc.
6,254
1,731,920
Deere & Co.
11,837
4,422,658
Dover Corp.
6,284
1,133,948
Fortive Corp.
16,097
1,192,788
IDEX Corp.
3,461
696,353
Illinois Tool Works, Inc.
12,416
2,942,096
Ingersoll Rand, Inc.
18,447
1,675,726
Nordson Corp.
2,484
576,139
Otis Worldwide Corp.
18,488
1,779,655
PACCAR, Inc.
23,967
2,467,163
Parker-Hannifin Corp.
5,878
2,973,151
Pentair PLC
7,592
582,079
Snap-On, Inc.
2,411
630,211
Stanley Black & Decker, Inc.
7,036
562,106
Westinghouse Air Brake Technologies Corp.
8,065
1,274,673
Xylem, Inc.
11,086
1,503,594
Total
33,593,042
Passenger Airlines 0.1%
American Airlines Group, Inc.(a)
30,000
339,900
Delta Air Lines, Inc.
29,507
1,399,812
Southwest Airlines Co.
27,364
782,884
United Airlines Holdings, Inc.(a)
15,035
731,603
Total
3,254,199
Professional Services 0.6%
Automatic Data Processing, Inc.
18,715
4,467,083
Broadridge Financial Solutions, Inc.
5,404
1,064,588
Dayforce, Inc.(a)
7,220
358,112
Equifax, Inc.
5,652
1,370,384
Jacobs Solutions, Inc.
5,725
799,840
Leidos Holdings, Inc.
6,183
901,976
Paychex, Inc.
14,649
1,736,786
Paycom Software, Inc.
2,198
314,402
Verisk Analytics, Inc.
6,524
1,758,544
Total
12,771,715
The accompanying Notes to Financial Statements are an integral part of this statement.
8
Columbia Variable Portfolio - Large Cap Index Fund | 2024
Portfolio of Investments(continued)June 30, 2024 (Unaudited)
Common Stocks (continued)
Issuer
Shares
Value ($)
Trading Companies & Distributors 0.3%
Fastenal Co.
26,180
1,645,151
United Rentals, Inc.
3,045
1,969,293
W.W. Grainger, Inc.
1,999
1,803,578
Total
5,418,022
Total Industrials
170,436,609
Information Technology 32.2%
Communications Equipment 0.8%
Arista Networks, Inc.(a)
11,606
4,067,671
Cisco Systems, Inc.
185,149
8,796,429
F5, Inc.(a)
2,680
461,576
Juniper Networks, Inc.
14,860
541,796
Motorola Solutions, Inc.
7,626
2,944,017
Total
16,811,489
Electronic Equipment, Instruments & Components 0.6%
Amphenol Corp., Class A
54,925
3,700,297
CDW Corp.
6,145
1,375,497
Corning, Inc.
35,252
1,369,540
Jabil, Inc.
5,514
599,868
Keysight Technologies, Inc.(a)
7,982
1,091,538
TE Connectivity Ltd.
14,002
2,106,321
Teledyne Technologies, Inc.(a)
2,168
841,141
Trimble Navigation Ltd.(a)
11,166
624,403
Zebra Technologies Corp., Class A(a)
2,351
726,294
Total
12,434,899
IT Services 1.0%
Accenture PLC, Class A
28,749
8,722,734
Akamai Technologies, Inc.(a)
6,965
627,407
Cognizant Technology Solutions Corp., Class A
22,734
1,545,912
EPAM Systems, Inc.(a)
2,651
498,680
Gartner, Inc.(a)
3,550
1,594,163
GoDaddy, Inc., Class A(a)
6,445
900,431
International Business Machines Corp.
42,003
7,264,419
VeriSign, Inc.(a)
3,962
704,443
Total
21,858,189
Common Stocks (continued)
Issuer
Shares
Value ($)
Semiconductors & Semiconductor Equipment 11.9%
Advanced Micro Devices, Inc.(a)
73,906
11,988,292
Analog Devices, Inc.
22,675
5,175,795
Applied Materials, Inc.
37,993
8,965,968
Broadcom, Inc.
19,919
31,980,552
Enphase Energy, Inc.(a)
6,221
620,296
First Solar, Inc.(a)
4,894
1,103,401
Intel Corp.
194,652
6,028,372
KLA Corp.
6,156
5,075,684
Lam Research Corp.
5,978
6,365,673
Microchip Technology, Inc.
24,709
2,260,874
Micron Technology, Inc.
50,635
6,660,022
Monolithic Power Systems, Inc.
2,226
1,829,060
NVIDIA Corp.
1,124,762
138,953,097
NXP Semiconductors NV
11,691
3,145,931
ON Semiconductor Corp.(a)
19,672
1,348,516
Qorvo, Inc.(a)
4,415
512,317
QUALCOMM, Inc.
51,121
10,182,281
Skyworks Solutions, Inc.
7,336
781,871
Teradyne, Inc.
7,138
1,058,494
Texas Instruments, Inc.
41,632
8,098,673
Total
252,135,169
Software 10.9%
Adobe, Inc.(a)
20,485
11,380,237
ANSYS, Inc.(a)
3,992
1,283,428
Autodesk, Inc.(a)
9,781
2,420,308
Cadence Design Systems, Inc.(a)
12,443
3,829,333
Crowdstrike Holdings, Inc., Class A(a)
10,547
4,041,505
Fair Isaac Corp.(a)
1,130
1,682,186
Fortinet, Inc.(a)
28,993
1,747,408
Gen Digital, Inc.
25,195
629,371
Intuit, Inc.
12,802
8,413,602
Microsoft Corp.
339,843
151,892,829
Oracle Corp.
72,892
10,292,350
Palo Alto Networks, Inc.(a)
14,774
5,008,534
PTC, Inc.(a)
5,475
994,643
Roper Technologies, Inc.
4,895
2,759,116
Salesforce, Inc.
44,411
11,418,068
ServiceNow, Inc.(a)
9,374
7,374,245
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Variable Portfolio - Large Cap Index Fund | 2024
9
Portfolio of Investments(continued)June 30, 2024 (Unaudited)
Common Stocks (continued)
Issuer
Shares
Value ($)
Synopsys, Inc.(a)
6,975
4,150,544
Tyler Technologies, Inc.(a)
1,941
975,896
Total
230,293,603
Technology Hardware, Storage & Peripherals 7.0%
Apple, Inc.(c)
659,083
138,816,062
Hewlett Packard Enterprise Co.
59,443
1,258,408
HP, Inc.
39,463
1,381,994
NetApp, Inc.
9,437
1,215,486
Seagate Technology Holdings PLC
8,930
922,201
Super Micro Computer, Inc.(a)
2,303
1,886,963
Western Digital Corp.(a)
14,930
1,131,246
Total
146,612,360
Total Information Technology
680,145,709
Materials 2.2%
Chemicals 1.4%
Air Products & Chemicals, Inc.
10,165
2,623,078
Albemarle Corp.
5,374
513,324
Celanese Corp., Class A
4,595
619,820
CF Industries Holdings, Inc.
8,358
619,495
Corteva, Inc.
31,870
1,719,068
Dow, Inc.
32,154
1,705,770
DuPont de Nemours, Inc.
19,118
1,538,808
Eastman Chemical Co.
5,380
527,079
Ecolab, Inc.
11,621
2,765,798
FMC Corp.
5,707
328,438
International Flavors & Fragrances, Inc.
11,676
1,111,672
Linde PLC
21,981
9,645,483
LyondellBasell Industries NV, Class A
11,762
1,125,153
Mosaic Co. (The)
14,696
424,714
PPG Industries, Inc.
10,762
1,354,828
Sherwin-Williams Co. (The)
10,666
3,183,054
Total
29,805,582
Construction Materials 0.2%
Martin Marietta Materials, Inc.
2,818
1,526,792
Vulcan Materials Co.
6,047
1,503,768
Total
3,030,560
Common Stocks (continued)
Issuer
Shares
Value ($)
Containers & Packaging 0.2%
Amcor PLC
66,088
646,341
Avery Dennison Corp.
3,683
805,288
Ball Corp.
14,192
851,804
International Paper Co.
15,882
685,308
Packaging Corp. of America
4,076
744,114
WestRock Co.
11,804
593,269
Total
4,326,124
Metals & Mining 0.4%
Freeport-McMoRan, Inc.
65,684
3,192,242
Newmont Corp.
52,727
2,207,680
Nucor Corp.
10,963
1,733,031
Steel Dynamics, Inc.
6,754
874,643
Total
8,007,596
Total Materials
45,169,862
Real Estate 2.1%
Health Care REITs 0.3%
Alexandria Real Estate Equities, Inc.
7,197
841,833
Healthpeak Properties, Inc.
32,181
630,748
Ventas, Inc.
18,508
948,720
Welltower, Inc.
27,340
2,850,195
Total
5,271,496
Hotel & Resort REITs 0.0%
Host Hotels & Resorts, Inc.
32,238
579,639
Industrial REITs 0.2%
Prologis, Inc.
42,334
4,754,531
Office REITs 0.0%
BXP, Inc.
6,607
406,727
Real Estate Management & Development 0.1%
CBRE Group, Inc., Class A(a)
13,791
1,228,916
CoStar Group, Inc.(a)
18,671
1,384,268
Total
2,613,184
Residential REITs 0.3%
AvalonBay Communities, Inc.
6,493
1,343,337
Camden Property Trust
4,871
531,475
Equity Residential
15,769
1,093,422
Essex Property Trust, Inc.
2,936
799,179
The accompanying Notes to Financial Statements are an integral part of this statement.
10
Columbia Variable Portfolio - Large Cap Index Fund | 2024
Portfolio of Investments(continued)June 30, 2024 (Unaudited)
Common Stocks (continued)
Issuer
Shares
Value ($)
Invitation Homes, Inc.
26,328
944,912
Mid-America Apartment Communities, Inc.
5,342
761,823
UDR, Inc.
13,853
570,051
Total
6,044,199
Retail REITs 0.3%
Federal Realty Investment Trust
3,414
344,712
Kimco Realty Corp.
30,516
593,841
Realty Income Corp.
39,816
2,103,081
Regency Centers Corp.
7,520
467,744
Simon Property Group, Inc.
14,903
2,262,275
Total
5,771,653
Specialized REITs 0.9%
American Tower Corp.
21,352
4,150,402
Crown Castle, Inc.
19,869
1,941,201
Digital Realty Trust, Inc.
14,838
2,256,118
Equinix, Inc.
4,340
3,283,644
Extra Space Storage, Inc.
9,681
1,504,524
Iron Mountain, Inc.
13,404
1,201,267
Public Storage
7,232
2,080,285
SBA Communications Corp.
4,913
964,422
VICI Properties, Inc.
47,700
1,366,128
Weyerhaeuser Co.
33,334
946,352
Total
19,694,343
Total Real Estate
45,135,772
Utilities 2.3%
Electric Utilities 1.5%
Alliant Energy Corp.
11,723
596,701
American Electric Power Co., Inc.
24,103
2,114,797
Constellation Energy Corp.
14,414
2,886,692
Duke Energy Corp.
35,289
3,537,017
Edison International
17,593
1,263,353
Entergy Corp.
9,764
1,044,748
Evergy, Inc.
10,514
556,927
Eversource Energy
16,107
913,428
Exelon Corp.
45,727
1,582,611
FirstEnergy Corp.
23,685
906,425
NextEra Energy, Inc.
93,944
6,652,175
NRG Energy, Inc.
9,533
742,239
Common Stocks (continued)
Issuer
Shares
Value ($)
PG&E Corp.
97,716
1,706,121
Pinnacle West Capital Corp.
5,192
396,565
PPL Corp.
33,733
932,717
Southern Co. (The)
49,997
3,878,267
Xcel Energy, Inc.
25,407
1,356,988
Total
31,067,771
Gas Utilities 0.0%
Atmos Energy Corp.
6,899
804,769
Independent Power and Renewable Electricity Producers 0.1%
AES Corp. (The)
32,495
570,937
Vistra Corp.
14,934
1,284,026
Total
1,854,963
Multi-Utilities 0.6%
Ameren Corp.
12,194
867,115
CenterPoint Energy, Inc.
29,251
906,196
CMS Energy Corp.
13,655
812,882
Consolidated Edison, Inc.
15,813
1,413,998
Dominion Energy, Inc.
38,327
1,878,023
DTE Energy Co.
9,462
1,050,377
NiSource, Inc.
20,499
590,576
Public Service Enterprise Group, Inc.
22,775
1,678,518
Sempra
28,937
2,200,948
WEC Energy Group, Inc.
14,441
1,133,041
Total
12,531,674
Water Utilities 0.1%
American Water Works Co., Inc.
8,908
1,150,557
Total Utilities
47,409,734
Total Common Stocks
(Cost $1,003,389,599)
2,096,093,778
Money Market Funds 0.8%
Shares
Value ($)
Columbia Short-Term Cash Fund, 5.547%(b),(d)
17,342,744
17,337,541
Total Money Market Funds
(Cost $17,338,233)
17,337,541
Total Investments in Securities
(Cost: $1,020,727,832)
2,113,431,319
Other Assets & Liabilities, Net
(1,323,755
)
Net Assets
2,112,107,564
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Variable Portfolio - Large Cap Index Fund | 2024
11
Portfolio of Investments(continued)June 30, 2024 (Unaudited)
At June 30, 2024, securities and/or cash totaling $3,454,168 were pledged as collateral.
Investments in derivatives
Long futures contracts
Description
Number of
contracts
Expiration
date
Trading
currency
Notional
amount
Value/Unrealized
appreciation ($)
Value/Unrealized
depreciation ($)
S&P 500 Index E-mini
75
09/2024
USD
20,705,625
69,682
-
Notes to Portfolio of Investments
(a)
Non-income producing investment.
(b)
As defined in the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the company's outstanding voting securities, or a company which is under common ownership or control with the Fund. The value of the holdings and transactions in these affiliated companies during the period ended June 30, 2024 are as follows:
Affiliated issuers
Beginning
of period($)
Purchases($)
Sales($)
Net change in
unrealized
appreciation
(depreciation)($)
End of
period($)
Realized gain
(loss)($)
Dividends($)
End of
period shares
Ameriprise Financial, Inc.
1,771,147
-
(4,557
)
173,707
1,940,297
46,308
13,047
4,542
Columbia Short-Term Cash Fund, 5.547%
16,099,315
40,108,414
(38,868,510
)
(1,678
)
17,337,541
508
405,243
17,342,744
Total
17,870,462
172,029
19,277,838
46,816
418,290
(c)
This security or a portion of this security has been pledged as collateral in connection with derivative contracts.
(d)
The rate shown is the seven-day current annualized yield at June 30, 2024.
Currency Legend
USD
US Dollar
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.
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.
The accompanying Notes to Financial Statements are an integral part of this statement.
12
Columbia Variable Portfolio - Large Cap Index Fund | 2024
Portfolio of Investments(continued)June 30, 2024 (Unaudited)
Fair value measurements (continued)
The Fund's Board of Trustees (the Board) has designated the Investment Manager, through its Valuation Committee (the Committee), as valuation designee, responsible for determining the fair value of the assets of the Fund for which market quotations are not readily available using 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 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 additional valuation matters, which may include the need to review back-testing results, review time-sensitive information or approve related valuation actions. Representatives of Columbia Management Investment Advisers, LLC report to the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.
The following table is a summary of the inputs used to value the Fund's investments at June 30, 2024:
Level 1 ($)
Level 2 ($)
Level 3 ($)
Total ($)
Investments in Securities
Common Stocks
Communication Services
195,851,540
-
-
195,851,540
Consumer Discretionary
208,659,230
-
-
208,659,230
Consumer Staples
120,908,948
-
-
120,908,948
Energy
76,494,134
-
-
76,494,134
Financials
260,242,103
-
-
260,242,103
Health Care
245,640,137
-
-
245,640,137
Industrials
170,436,609
-
-
170,436,609
Information Technology
680,145,709
-
-
680,145,709
Materials
45,169,862
-
-
45,169,862
Real Estate
45,135,772
-
-
45,135,772
Utilities
47,409,734
-
-
47,409,734
Total Common Stocks
2,096,093,778
-
-
2,096,093,778
Money Market Funds
17,337,541
-
-
17,337,541
Total Investments in Securities
2,113,431,319
-
-
2,113,431,319
Investments in Derivatives
Asset
Futures Contracts
69,682
-
-
69,682
Total
2,113,501,001
-
-
2,113,501,001
See the Portfolio of Investments for all investment classifications not indicated in the table.
Derivative instruments are valued at unrealized appreciation (depreciation).
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Variable Portfolio - Large Cap Index Fund | 2024
13
Statement of Assets and LiabilitiesJune 30, 2024 (Unaudited)
Assets
Investments in securities, at value
Unaffiliated issuers (cost $1,002,834,940)
$2,094,153,481
Affiliated issuers (cost $17,892,892)
19,277,838
Receivable for:
Investments sold
75,882
Capital shares sold
249,362
Dividends
1,123,844
Foreign tax reclaims
18,730
Expense reimbursement due from Investment Manager
98
Prepaid expenses
6,327
Total assets
2,114,905,562
Liabilities
Due to custodian
2,667
Payable for:
Capital shares redeemed
2,440,922
Variation margin for futures contracts
91,875
Management services fees
11,603
Distribution and/or service fees
4,307
Service fees
51,564
Compensation of chief compliance officer
169
Compensation of board members
3,675
Other expenses
81,083
Deferred compensation of board members
110,133
Total liabilities
2,797,998
Net assets applicable to outstanding capital stock
$2,112,107,564
Represented by
Trust capital
$2,112,107,564
Total - representing net assets applicable to outstanding capital stock
$2,112,107,564
Class 1
Net assets
$1,031,447,633
Shares outstanding
22,188,739
Net asset value per share
$46.49
Class 2
Net assets
$174,753,841
Shares outstanding
3,882,545
Net asset value per share
$45.01
Class 3
Net assets
$905,906,090
Shares outstanding
19,794,688
Net asset value per share
$45.77
The accompanying Notes to Financial Statements are an integral part of this statement.
14
Columbia Variable Portfolio - Large Cap Index Fund | 2024
Statement of OperationsSix Months Ended June 30, 2024 (Unaudited)
Net investment income
Income:
Dividends - unaffiliated issuers
$13,961,400
Dividends - affiliated issuers
418,290
Foreign taxes withheld
(3,586
)
Total income
14,376,104
Expenses:
Management services fees
1,972,115
Distribution and/or service fees
Class 2
188,627
Class 3
533,413
Service fees
329,625
Custodian fees
10,269
Printing and postage fees
19,766
Licensing fees and expenses
86,893
Accounting services fees
15,328
Legal fees
15,982
Interest on collateral
386
Compensation of chief compliance officer
178
Compensation of board members
15,718
Deferred compensation of board members
16,092
Other
14,790
Total expenses
3,219,182
Fees waived or expenses reimbursed by Investment Manager and its affiliates
(31,560
)
Total net expenses
3,187,622
Net investment income
11,188,482
Realized and unrealized gain (loss) - net
Net realized gain (loss) on:
Investments - unaffiliated issuers
19,148,171
Investments - affiliated issuers
46,816
Futures contracts
2,478,147
Net realized gain
21,673,134
Net change in unrealized appreciation (depreciation) on:
Investments - unaffiliated issuers
246,386,764
Investments - affiliated issuers
172,029
Futures contracts
(609,469
)
Net change in unrealized appreciation (depreciation)
245,949,324
Net realized and unrealized gain
267,622,458
Net increase in net assets resulting from operations
$278,810,940
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Variable Portfolio - Large Cap Index Fund | 2024
15
Statement of Changes in Net Assets
Six Months Ended
June 30, 2024
(Unaudited)
Year Ended
December 31, 2023
Operations
Net investment income
$11,188,482
$22,811,236
Net realized gain
21,673,134
41,805,380
Net change in unrealized appreciation (depreciation)
245,949,324
325,297,025
Net increase in net assets resulting from operations
278,810,940
389,913,641
Decrease in net assets from capital stock activity
(27,602,673
)
(53,954,838
)
Total increase in net assets
251,208,267
335,958,803
Net assets at beginning of period
1,860,899,297
1,524,940,494
Net assets at end of period
$2,112,107,564
$1,860,899,297
Six Months Ended
Year Ended
June 30, 2024 (Unaudited)
December 31, 2023
Shares
Dollars ($)
Shares
Dollars ($)
Capital stock activity
Class 1
Shares sold
471,574
20,478,302
945,949
34,218,490
Shares redeemed
(979,662
)
(42,497,891
)
(2,636,470
)
(96,357,997
)
Net decrease
(508,088
)
(22,019,589
)
(1,690,521
)
(62,139,507
)
Class 2
Shares sold
608,130
25,724,813
1,309,291
45,838,679
Shares redeemed
(107,358
)
(4,563,102
)
(155,137
)
(5,509,594
)
Net increase
500,772
21,161,711
1,154,154
40,329,085
Class 3
Shares sold
209,843
8,945,428
504,043
17,818,075
Shares redeemed
(837,519
)
(35,690,223
)
(1,402,920
)
(49,962,491
)
Net decrease
(627,676
)
(26,744,795
)
(898,877
)
(32,144,416
)
Total net decrease
(634,992
)
(27,602,673
)
(1,435,244
)
(53,954,838
)
The accompanying Notes to Financial Statements are an integral part of this statement.
16
Columbia Variable Portfolio - Large Cap Index Fund | 2024
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Columbia Variable Portfolio - Large Cap Index Fund | 2024
17
Financial Highlights
The following table is intended to help you understand the Fund's financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect any fees and expenses imposed under your Contract and/or Qualified Plan, as applicable; such fees and expenses would reduce the total returns for all periods shown. Total return and portfolio turnover are not annualized for periods of less than one year. The ratios of expenses and net investment income are annualized for periods of less than one year. The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments and certain derivatives, if any. If such transactions were included, the Fund's portfolio turnover rate may be higher.
Net asset value,
beginning of
period
Net
investment
income
Net
realized
and
unrealized
gain (loss)
Total from
investment
operations
Class 1
Six Months Ended 6/30/2024 (Unaudited)
$40.37
0.26
5.86
6.12
Year Ended 12/31/2023
$32.05
0.51
7.81
8.32
Year Ended 12/31/2022
$39.25
0.46
(7.66
)
(7.20
)
Year Ended 12/31/2021
$30.57
0.40
8.28
8.68
Year Ended 12/31/2020
$25.90
0.45
4.22
4.67
Year Ended 12/31/2019
$19.75
0.44
5.71
6.15
Class 2
Six Months Ended 6/30/2024 (Unaudited)
$39.14
0.20
5.67
5.87
Year Ended 12/31/2023
$31.15
0.41
7.58
7.99
Year Ended 12/31/2022
$38.24
0.37
(7.46
)
(7.09
)
Year Ended 12/31/2021
$29.86
0.31
8.07
8.38
Year Ended 12/31/2020
$25.36
0.37
4.13
4.50
Year Ended 12/31/2019
$19.39
0.37
5.60
5.97
Class 3
Six Months Ended 6/30/2024 (Unaudited)
$39.77
0.23
5.77
6.00
Year Ended 12/31/2023
$31.61
0.46
7.70
8.16
Year Ended 12/31/2022
$38.76
0.41
(7.56
)
(7.15
)
Year Ended 12/31/2021
$30.23
0.35
8.18
8.53
Year Ended 12/31/2020
$25.65
0.41
4.17
4.58
Year Ended 12/31/2019
$19.58
0.40
5.67
6.07
Notes to Financial Highlights
(a)
In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund's reported expense ratios.
(b)
Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable.
(c)
Ratios include interest on collateral expense which is less than 0.01%.
(d)
Ratios include interfund lending expense which is less than 0.01%.
The accompanying Notes to Financial Statements are an integral part of this statement.
18
Columbia Variable Portfolio - Large Cap Index Fund | 2024
Financial Highlights(continued)
Net
asset
value,
end of
period
Total
return
Total gross
expense
ratio to
average
net assets(a)
Total net
expense
ratio to
average
net assets(a),(b)
Net investment
income
ratio to
average
net assets
Portfolio
turnover
Net
assets,
end of
period
(000's)
Class 1
Six Months Ended 6/30/2024 (Unaudited)
$46.49
15.16%
0.25%
(c)
0.25%
(c)
1.21%
1%
$1,031,448
Year Ended 12/31/2023
$40.37
25.96%
0.25%
(c)
0.25%
(c)
1.42%
2%
$916,315
Year Ended 12/31/2022
$32.05
(18.34%
)
0.25%
(c)
0.25%
(c)
1.36%
2%
$781,574
Year Ended 12/31/2021
$39.25
28.39%
0.25%
(c)
0.25%
(c)
1.14%
5%
$947,973
Year Ended 12/31/2020
$30.57
18.03%
0.26%
(d)
0.26%
(d)
1.72%
9%
$742,971
Year Ended 12/31/2019
$25.90
31.14%
0.26%
0.26%
1.91%
2%
$599,584
Class 2
Six Months Ended 6/30/2024 (Unaudited)
$45.01
15.00%
0.50%
(c)
0.50%
(c)
0.96%
1%
$174,754
Year Ended 12/31/2023
$39.14
25.65%
0.51%
(c)
0.50%
(c)
1.18%
2%
$132,360
Year Ended 12/31/2022
$31.15
(18.54%
)
0.50%
(c)
0.50%
(c)
1.15%
2%
$69,385
Year Ended 12/31/2021
$38.24
28.07%
0.50%
(c)
0.50%
(c)
0.89%
5%
$43,195
Year Ended 12/31/2020
$29.86
17.74%
0.51%
(d)
0.51%
(d)
1.48%
9%
$11,359
Year Ended 12/31/2019
$25.36
30.79%
0.51%
0.51%
1.63%
2%
$11,354
Class 3
Six Months Ended 6/30/2024 (Unaudited)
$45.77
15.09%
0.38%
(c)
0.38%
(c)
1.08%
1%
$905,906
Year Ended 12/31/2023
$39.77
25.82%
0.38%
(c)
0.38%
(c)
1.30%
2%
$812,224
Year Ended 12/31/2022
$31.61
(18.45%
)
0.38%
(c)
0.38%
(c)
1.23%
2%
$673,982
Year Ended 12/31/2021
$38.76
28.22%
0.38%
(c)
0.38%
(c)
1.01%
5%
$858,770
Year Ended 12/31/2020
$30.23
17.85%
0.38%
(d)
0.38%
(d)
1.59%
9%
$689,960
Year Ended 12/31/2019
$25.65
31.00%
0.39%
0.39%
1.76%
2%
$599,751
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Variable Portfolio - Large Cap Index Fund | 2024
19
Notes to Financial StatementsJune 30, 2024 (Unaudited)
Note 1. Organization
Columbia Variable Portfolio - Large Cap Index Fund (the Fund), a series of Columbia Funds Variable Series Trust II (the Trust), is a diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
Fund shares
The Trust may issue an unlimited number of shares (without par value). The Fund offers Class 1, Class 2 and Class 3 shares to separate accounts funding variable annuity contracts and variable life insurance policies (collectively, Contracts) issued by affiliated and unaffiliated life insurance companies (Participating Insurance Companies) as well as qualified pension and retirement plans (Qualified Plans) and other qualified institutional investors (Qualified Investors) authorized by Columbia Management Investment Distributors, Inc. (the Distributor). You may not buy (nor will you own) shares of the Fund directly. You may invest by participating in a Qualified Plan or by buying a Contract and making allocations to the Fund. Although all share classes generally have identical voting, dividend and liquidation rights, each share class votes separately when required by the Trust's organizational documents or by law. Different share classes pay different net investment income distribution amounts to the extent the expenses of such share classes differ, and distributions in liquidation will be proportional to the net asset value of each share class. Each share class has its own cost structure and other features.
Note 2. Summary of significant accounting policies
Basis of preparation
The Fund is an investment company that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies(ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Equity securities listed on an exchange are valued at the closing price or last trade price on their primary exchange at the close of business of the New York Stock Exchange. Securities with a closing price not readily available or not listed on any exchange are valued at the mean between the closing bid and ask prices. Listed preferred stocks convertible into common stocks are valued using an evaluated price from a pricing service.
Foreign equity securities are valued based on the closing price or last trade price on their primary exchange at the close of business of the New York Stock Exchange. If any foreign equity security closing prices are not readily available, the securities are valued at the mean of the latest quoted bid and ask prices on such exchanges or markets. Foreign currency exchange rates are determined at the scheduled closing time of the New York Stock Exchange. Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange; therefore, the closing prices for securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the close of the New York Stock Exchange. In those situations, foreign securities will be fair valued pursuant to a policy approved by the Board of Trustees. Under the policy, the Fund may utilize a third-party pricing service to determine these fair values. The third-party pricing service takes into account multiple factors, including, but not limited to, movements in the U.S. securities markets, certain depositary receipts, futures contracts and foreign exchange rates that have occurred subsequent to the close of the foreign exchange or market, to determine a good faith estimate that reasonably reflects the current market conditions as of the close of the New York Stock Exchange. The fair value of a security is likely to be different from the quoted or published price, if available.
Investments in open-end investment companies (other than exchange-traded funds (ETFs)), are valued at the latest net asset value reported by those companies as of the valuation time.
20
Columbia Variable Portfolio - Large Cap Index Fund | 2024
Notes to Financial Statements(continued)June 30, 2024 (Unaudited)
Futures and options on futures contracts are valued based upon the settlement price at the close of regular trading on their principal exchanges or, in the absence of a settlement price, at the mean of the latest quoted bid and ask prices.
Investments for which market quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by the Board of Trustees. If a security or class of securities (such as foreign securities) is valued at fair value, such value is likely to be different from the quoted or published price for the security, if available.
The determination of fair value often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and estimated risk premiums. Multiple inputs from various sources may be used to determine fair value.
GAAP requires 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. This information is disclosed following the Fund's Portfolio of Investments.
Derivative instruments
The Fund invests in certain derivative instruments, as detailed below, in seeking to meet its investment objectives. Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more securities, currencies, commodities, indices, or other assets or instruments. Derivatives may be used to increase investment flexibility (including to maintain cash reserves while maintaining desired exposure to certain assets), for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. The Fund may also use derivative instruments to mitigate certain investment risks, such as foreign currency exchange rate risk, interest rate risk and credit risk. Derivatives may involve various risks, including the potential inability of the counterparty to fulfill its obligations under the terms of the contract, the potential for an illiquid secondary market (making it difficult for the Fund to sell or terminate, including at favorable prices) and the potential for market movements which may expose the Fund to gains or losses in excess of the amount shown in the Statement of Assets and Liabilities. The notional exposure of a financial instrument is the nominal or face amount that is used to calculate payments made on that instrument and/or changes in value for the instrument. The notional exposure is a hypothetical underlying quantity upon which payment obligations are computed. Notional exposures provide a gauge for how the Fund may behave given changes in individual markets. The notional amounts of derivative instruments, if applicable, are not recorded in the financial statements.
A derivative instrument may suffer a marked-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform its obligations under the contract. The Fund's risk of loss from counterparty credit risk on over-the-counter derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the Fund and the amount of any variation margin held by the counterparty, plus any replacement costs or related amounts. With exchange-traded or centrally cleared derivatives, there is reduced counterparty credit risk to the Fund since the clearinghouse or central counterparty provides some protection in the case of clearing member default. The clearinghouse or central counterparty stands between the buyer and the seller of the contract; therefore, failure of the clearinghouse or central counterparty may pose additional counterparty credit risk. However, credit risk still exists in exchange-traded or centrally cleared derivatives with respect to initial and variation margin that is held in a broker's customer account. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients and such shortfall is remedied by the central counterparty or otherwise, U.S. bankruptcy laws will typically allocate that shortfall on a pro-rata basis across all the clearing broker's customers (including the Fund), potentially resulting in losses to the Fund.
In order to better define its contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (ISDA Master Agreement) or similar agreement with its derivatives counterparties. An ISDA Master Agreement is an agreement between the Fund and a counterparty that governs over-the-counter derivatives and foreign exchange forward contracts and contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset with the counterparty certain derivative instruments' payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the
Columbia Variable Portfolio - Large Cap Index Fund | 2024
21
Notes to Financial Statements(continued)June 30, 2024 (Unaudited)
ISDA Master Agreement typically permit a single net payment in the event of default (close-out netting), including the bankruptcy or insolvency of the counterparty. Note, however, that bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset or netting in bankruptcy, insolvency or other events.
Collateral (margin) requirements differ by type of derivative. Margin requirements are established by the clearinghouse or central counterparty for exchange-traded and centrally cleared derivatives. Brokers can ask for margin in excess of the minimum in certain circumstances. Collateral terms for most over-the-counter derivatives are subject to regulatory requirements to exchange variation margin with trading counterparties and may have contract specific margin terms as well. For over-the-counter derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the marked-to-market amount for each transaction under such agreement and comparing that amount to the value of any variation margin currently pledged by the Fund and/or the counterparty. Generally, the amount of collateral due from or to a party has to exceed a minimum transfer amount threshold (e.g., $250,000) before a transfer has to be made. To the extent amounts due to the Fund from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the risk of loss from counterparty nonperformance. The Fund may also pay interest expense on cash collateral received from the broker or receive interest income on cash collateral pledged to the broker. The Fund attempts to mitigate counterparty risk by only entering into agreements with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.
Certain ISDA Master Agreements allow counterparties of over-the-counter derivatives transactions to terminate derivatives contracts prior to maturity in the event the Fund's net asset value declines by a stated percentage over a specified time period or if the Fund fails to meet certain terms of the ISDA Master Agreement, which would cause the Fund to accelerate payment of any net liability owed to the counterparty. The Fund also has termination rights if the counterparty fails to meet certain terms of the ISDA Master Agreement. In determining whether to exercise such termination rights, the Fund would consider, in addition to counterparty credit risk, whether termination would result in a net liability owed from the counterparty.
For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statement of Assets and Liabilities.
Futures contracts
Futures contracts are exchange-traded and represent commitments for the future purchase or sale of an asset at a specified price on a specified date. The Fund bought and sold futures contracts to maintain appropriate equity market exposure while keeping sufficient cash to accommodate daily redemptions. These instruments may be used for other purposes in future periods. Upon entering into futures contracts, the Fund bears risks that it may not achieve the anticipated benefits of the futures contracts and may realize a loss. Additional risks include counterparty credit risk, the possibility of an illiquid market, and that a change in the value of the contract or option may not correlate with changes in the value of the underlying asset.
Upon entering into a futures contract, the Fund deposits cash or securities with the broker, known as a futures commission merchant (FCM), in an amount sufficient to meet the initial margin requirement. The initial margin deposit must be maintained at an established level over the life of the contract. Cash deposited as initial margin is recorded in the Statement of Assets and Liabilities as margin deposits. Securities deposited as initial margin are designated in the Portfolio of Investments. Subsequent payments (variation margin) are made or received by the Fund each day. The variation margin payments are equal to the daily change in the contract value and are recorded as variation margin receivable or payable and are offset in unrealized gains or losses. The Fund generally expects to earn interest income on its margin deposits. The Fund recognizes a realized gain or loss when the contract is closed or expires. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities.
Effects of derivative transactions in the financial statements
The following tables are intended to provide additional information about the effect of derivatives on the financial statements of the Fund, including: the fair value of derivatives by risk category and the location of those fair values in the Statement of Assets and Liabilities; and the impact of derivative transactions over the period in the Statement of Operations, including realized and unrealized gains (losses). The derivative instrument schedules following the Portfolio of Investments present additional information regarding derivative instruments outstanding at the end of the period, if any.
22
Columbia Variable Portfolio - Large Cap Index Fund | 2024
Notes to Financial Statements(continued)June 30, 2024 (Unaudited)
The following table is a summary of the fair value of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) at June 30, 2024:
Asset derivatives
Risk exposure
category
Statement
of assets and liabilities
location
Fair value ($)
Equity risk
Component of trust capital - unrealized appreciation on futures contracts
69,682
*
*
Includes cumulative appreciation (depreciation) as reported in the tables following the Portfolio of Investments. Only the current day's variation margin for futures and centrally cleared swaps, if any, is reported in receivables or payables in the Statement of Assets and Liabilities.
The following table indicates the effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in the Statement of Operations for the six months ended June 30, 2024:
Amount of realized gain (loss) on derivatives recognized in income
Risk exposure category
Futures
contracts
($)
Equity risk
2,478,147
Change in unrealized appreciation (depreciation) on derivatives recognized in income
Risk exposure category
Futures
contracts
($)
Equity risk
(609,469
)
The following table is a summary of the average daily outstanding volume by derivative instrument for the six months ended June 30, 2024:
Derivative instrument
Average notional
amounts ($)
Futures contracts - long
17,323,286
Security transactions
Security transactions are accounted for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income recognition
Corporate actions and dividend income are generally recorded net of any non-reclaimable tax withholdings, on the ex-dividend date or upon receipt of an ex-dividend notification in the case of certain foreign securities.
The Fund may receive distributions from holdings in equity securities, business development companies (BDCs), exchange-traded funds (ETFs), limited partnerships (LPs), other regulated investment companies (RICs), and real estate investment trusts (REITs), which report information as to the tax character of their distributions annually. These distributions 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.
Columbia Variable Portfolio - Large Cap Index Fund | 2024
23
Notes to Financial Statements(continued)June 30, 2024 (Unaudited)
Expenses
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 is treated as a partnership for federal income tax purposes, and the Fund does not expect to make regular distributions. The Fund will not be subject to federal income tax, and therefore, there is no provision for federal income taxes. The partners of the Fund are subject to tax on their distributive share of the Fund's income and loss. The Fund's net assets are reported at the partner-level for federal income tax purposes.
Management of the Fund has concluded that there are no significant uncertain tax positions in the Fund that would require recognition in the financial statements. However, management's conclusion may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws, regulations, and administrative interpretations (including relevant court decisions). Generally, the Fund's federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.
Foreign taxes
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.
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.
Note 3. Fees and other transactions with affiliates
Management services fees
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 services. The management services fee is an annual fee that is equal to 0.20% of the Fund's daily net assets.
Compensation of Board members
Members of the Board of Trustees who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. Under a Deferred Compensation Plan (the Deferred Plan), these members of the Board of Trustees may elect to defer payment of up to 100% of their compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of certain
24
Columbia Variable Portfolio - Large Cap Index Fund | 2024
Notes to Financial Statements(continued)June 30, 2024 (Unaudited)
funds managed by the Investment Manager. The Fund's liability for these amounts is adjusted for market value changes and remains in the Fund until distributed in accordance with the Deferred Plan. All amounts payable under the Deferred Plan constitute a general unsecured obligation of the Fund. The expense for the Deferred Plan, which includes Trustees' fees deferred during the current period as well as any gains or losses on the Trustees' deferred compensation balances as a result of market fluctuations, is included in "Deferred compensation of board members" in the Statement of Operations.
Compensation of Chief Compliance Officer
The Board of Trustees has appointed a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer's total compensation is allocated to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
Service fees
The Fund has entered into a Shareholder Services Agreement with Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial. Under this agreement, the Fund pays a service fee equal to the payments made by the Transfer Agent to Participating Insurance Companies and other financial intermediaries (together, Participating Organizations) for services each such Participating Organization provides to its clients, customers and participants that are invested directly or indirectly in the Fund, up to a cap approved by the Board of Trustees from time to time. The annualized effective service fee rate for the six months ended June 30, 2024 was 0.03% of the Fund's average daily net assets.
The Transfer Agent may retain as compensation for its services revenues from fees for wire, telephone and redemption orders, account transcripts due the Transfer Agent from Fund shareholders and interest (net of bank charges) earned with respect to balances in accounts the Transfer Agent maintains in connection with its services to the Fund.
Distribution and/or service fees
The Fund has an agreement with the Distributor, an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution services. Under a Plan and Agreement of Distribution, the Fund pays a fee at an annual rate of up to 0.25% of the Fund's average daily net assets attributable to Class 2 shares and an annual rate of up to 0.125% of the Fund's average daily net assets attributable to Class 3 shares. The Fund pays no distribution and service fees for Class 1 shares.
Expenses waived/reimbursed by the Investment Manager and its affiliates
The Investment Manager and certain of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole discretion of the Board of Trustees, so that the Fund's net operating expenses, after giving effect to fees waived/expensesreimbursed and any balance credits and/or overdraft charges from the Fund's custodian, do not exceed the following annual rate(s) as a percentage of the classes' average daily net assets:
Fee rate(s) contractual
through
April 30, 2025 (%)
Class 1
0.25
Class 2
0.50
Class 3
0.375
Under the agreement governing these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes (including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed money, interest, costs associated with shareholder meetings, infrequent and/or unusual expenses and any other expenses the exclusion of which is
Columbia Variable Portfolio - Large Cap Index Fund | 2024
25
Notes to Financial Statements(continued)June 30, 2024 (Unaudited)
specifically approved by the Board of Trustees. This agreement may be modified or amended only with approval from the Investment Manager, certain of its affiliates and the Fund. Any fees waived and/or expenses reimbursed under the expense reimbursement arrangements described above are not recoverable by the Investment Manager or its affiliates in future periods.
Note 4. Portfolio information
The cost of purchases and proceeds from sales of securities, excluding short-term investments and derivatives, if any, aggregated to $17,215,600 and $31,732,955, respectively, for the six months ended June 30, 2024. The amount of purchase and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 5. Affiliated money market fund
The Fund invests in Columbia Short-Term Cash Fund, an affiliated money market fund established for the exclusive use by the Fund and other affiliated funds (the Affiliated MMF). The income earned by the Fund from such investments is included as Dividends - affiliated issuers in the Statement of Operations. As an investing fund, the Fund indirectly bears its proportionate share of the expenses of the Affiliated MMF. The Affiliated MMF prices its shares with a floating net asset value. The Securities and Exchange Commission has adopted amendments to money market fund rules requiring institutional prime money market funds like the Affiliated MMF to be subject to a discretionary liquidity fee of up to 2% if the imposition of such a fee is determined to be in the best interest of the Affiliated MMF and, by October 2, 2024, to a mandatory liquidity fee if daily net redemptions exceed 5% of net assets.
Note 6. Interfund lending
Pursuant to an exemptive order granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and, except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject to certain restrictions.
Interfund loans are subject to the risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject to conditions intended to mitigate conflicts of interest arising from the Investment Manager's relationship with each Participating Fund.
The Fund did not borrow or lend money under the Interfund Program during the six months ended June 30, 2024.
Note 7. Line of credit
The Fund has access to a revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for other temporary or emergency purposes. Pursuant to an October 26, 2023 amendment and restatement, the credit facility, which is an agreement between the Fund and certain other funds managed by the Investment Manager or an affiliated investment manager, severally and not jointly, permits aggregate borrowings up to $900 million. Interest is currently charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the secured overnight financing rate plus 0.10% and (iii) the overnight bank funding rate plus, in each case, 1.00%. Each borrowing under the credit facility matures no later than 60 days after the date of borrowing. The Fund also pays a commitment fee equal to its pro rata share of the unused amount of the credit facility at a rate of 0.15% per annum. The commitment fee is included in other expenses in the Statement of Operations. This agreement expires annually in October unless extended or renewed. Prior to the October 26, 2023 amendment and restatement, the Fund had access to a revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. which permitted collective borrowings up to $950 million. Interest was charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the secured overnight financing rate plus 0.10% and (iii) the overnight bank funding rate plus, in each case, 1.00%.
The Fund had no borrowings during the six months ended June 30, 2024.
26
Columbia Variable Portfolio - Large Cap Index Fund | 2024
Notes to Financial Statements(continued)June 30, 2024 (Unaudited)
Note 8. Significant risks
Information technology sector risk
The Fund is vulnerable to the particular risks that may affect companies in the information technology sector. Companies in the information technology sector are subject to certain risks, including the risk that new services, equipment or technologies will not be accepted by consumers and businesses or will become rapidly obsolete. Performance of such companies may be affected by factors including obtaining and protecting patents (or the failure to do so) and significant competitive pressures, including aggressive pricing of their products or services, new market entrants, competition for market share and short product cycles due to an accelerated rate of technological developments. Such competitive pressures may lead to limited earnings and/or falling profit margins. As a result, the value of their securities may fall or fail to rise. In addition, many information technology sector companies have limited operating histories and prices of these companies' securities historically have been more volatile than other securities, especially over the short term. Some companies in the information technology sector are facing increased government and regulatory scrutiny and may be subject to adverse government or regulatory action, which could negatively impact the value of their securities.
Market risk
The Fund may incur losses due to declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers, which could adversely affect the Fund's ability to price or value hard-to-value assets in thinly traded and closed markets and could cause significant redemptions and operational challenges. Global economies and financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. These risks may be magnified if certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies worldwide. As a result, local, regional or global events such as terrorism, war, other conflicts, natural disasters, disease/virus outbreaks and epidemics or other public health issues, recessions, depressions or other events - or the potential for such events - could have a significant negative impact on global economic and market conditions.
Passive investment risk
The Fund is not "actively" managed and may be affected by a general decline in market segments related to its Index's investment exposures. The Fund invests in securities or instruments included in, or believed by the Investment Manager to be representative of the Index regardless of their investment merits. The Fund does not seek temporary defensive positions when markets decline or appear overvalued. The decision of whether to remove a security from the tracking index is made by an independent index provider who is not affiliated with the Fund or the Investment Manager.
Shareholder concentration risk
At June 30, 2024, affiliated shareholders of record owned 99.5% of the outstanding shares of the Fund in one or more accounts. Fund shares sold to or redeemed by concentrated accounts may have a significant effect on the operations of the Fund. In the case of a large redemption, the Fund may be forced to sell investments at inopportune times, including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of less liquid positions. Large redemptions could result in decreased economies of scale and increased operating expenses for non-redeeming Fund shareholders.
Note 9. Subsequent events
Management has evaluated the events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Columbia Variable Portfolio - Large Cap Index Fund | 2024
27
Notes to Financial Statements(continued)June 30, 2024 (Unaudited)
Note 10. Information regarding pending and settled legal proceedings
Ameriprise Financial and certain of its affiliates are involved in the normal course of business in legal proceedings which include regulatory inquiries, arbitration and litigation, including class actions concerning matters arising in connection with the conduct of their activities as part of a diversified financial services firm. Ameriprise Financial believes that the Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and regulatory matters that relate to Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines, penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial or one or more of its affiliates that provide services to the Fund.
28
Columbia Variable Portfolio - Large Cap Index Fund | 2024
Approval of Management Agreement
(Unaudited)
Columbia Management Investment Advisers, LLC (the Investment Manager, and together with its domestic and global affiliates, Columbia Threadneedle Investments), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial), serves as the investment manager to Columbia Variable Portfolio - Large Cap Index Fund (the Fund). Under a management agreement (the Management Agreement), the Investment Manager provides investment advice and other services to the Fund and other funds distributed by Columbia Management Investment Distributors, Inc. (collectively, the Funds).
On an annual basis, the Fund's Board of Trustees (the Board), including the independent Board members (the Independent Trustees), considers renewal of the Management Agreement. The Investment Manager prepared detailed reports for the Board and its Contracts Committee (including its Contracts Subcommittee) in March, April, May and June 2024, including reports providing the results of analyses performed by a third-party data provider, Broadridge Financial Solutions, Inc. (Broadridge), and comprehensive responses by the Investment Manager to written requests for information by independent legal counsel to the Independent Trustees (Independent Legal Counsel), to assist the Board in making this determination. In addition, throughout the year, the Board (or its committees or subcommittees) regularly meets with portfolio management teams and senior management personnel and reviews information prepared by the Investment Manager addressing the services the Investment Manager provides and Fund performance. The Board also accords appropriate weight to the work, deliberations and conclusions of the various committees (including their subcommittees), such as the Contracts Committee, the Investment Review Committee, the Audit Committee and the Compliance Committee in determining whether to continue the Management Agreement.
The Board, at its June 27, 2024 Board meeting (the June Meeting), considered the renewal of the Management Agreement for an additional one-year term. At the June Meeting, Independent Legal Counsel reviewed with the Independent Trustees various factors relevant to the Board's consideration of advisory agreements and the Board's legal responsibilities related to such consideration. The Independent Trustees considered such information as they, their legal counsel or the Investment Manager believed reasonably necessary to evaluate and to approve the continuation of the Management Agreement. Among other things, the information and factors considered included the following:
•
Information on the investment performance of the Fund relative to the performance of a group of mutual funds determined to be comparable to the Fund by Broadridge, as well as performance relative to one or more benchmarks;
•
Information on the Fund's management fees and total expenses, including information comparing the Fund's expenses to those of a group of comparable mutual funds, as determined by Broadridge;
•
The Investment Manager's agreement to contractually limit or cap total operating expenses for the Fund so that total operating expenses (excluding certain fees and expenses, such as transaction costs and certain other investment related expenses, interest, taxes, acquired fund fees and expenses and infrequent and/or unusual expenses) would not exceed a specified annual rate, as a percentage of the Fund's net assets;
•
Terms of the Management Agreement;
•
Descriptions of other agreements and arrangements with affiliates of the Investment Manager relating to the operations of the Fund, including agreements with respect to the provision of transfer agency and shareholder services to the Fund;
•
Descriptions of various services performed by the Investment Manager under the Management Agreement, including portfolio management and portfolio trading practices;
•
Information regarding any recently negotiated management fees of similarly-managed portfolios of other institutional clients of the Investment Manager;
•
Information regarding the resources of the Investment Manager, including information regarding senior management, portfolio managers and other personnel;
•
Information regarding the capabilities of the Investment Manager with respect to compliance monitoring services;
•
The profitability to the Investment Manager and its affiliates from their relationships with the Fund; and
•
Report provided by the Board's independent fee consultant, JDL Consultants, LLC (JDL).
Columbia Variable Portfolio - Large Cap Index Fund | 2024
29
Approval of Management Agreement(continued)(Unaudited)
Following an analysis and discussion of the foregoing, and the factors identified below, the Board, including all of the Independent Trustees, approved the renewal of the Management Agreement.
Nature, extent and quality of services provided by the Investment Manager
The Board analyzed various reports and presentations it had received detailing the services performed by the Investment Manager, as well as its history, expertise, resources and relative capabilities, and the qualifications of its personnel.
The Board specifically considered the many developments during recent years concerning the services provided by the Investment Manager. Among other things, the Board noted the organization and depth of the equity and credit research departments. The Board further observed the enhancements to the investment risk management department's processes, systems and oversight over the past several years. The Board also took into account the broad scope of services provided by the Investment Manager to the Fund, including, among other services, investment, risk and compliance oversight. The Board also took into account the information it received concerning the Investment Manager's ability to attract and retain key portfolio management personnel and that it has sufficient resources to provide competitive and adequate compensation to investment personnel.
In connection with the Board's evaluation of the overall package of services provided by the Investment Manager, the Board also considered the nature, quality and range of administrative services provided to the Fund by the Investment Manager, as well as the achievements in 2023 in the performance of administrative services, and noted the various enhancements anticipated for 2024. In evaluating the quality of services provided under the Management Agreement, the Board also took into account the organization and strength of the Fund's and its service providers' compliance programs. The Board also reviewed the financial condition of the Investment Manager and its affiliates and each entity's ability to carry out its responsibilities under the Management Agreement and the Fund's other service agreements.
In addition, the Board discussed the acceptability of the terms of the Management Agreement, noting that no changes were proposed from the form of agreement previously approved. The Board also noted the wide array of legal and compliance services provided to the Fund under the Management Agreement.
After reviewing these and related factors (including investment performance as discussed below), the Board concluded, within the context of their overall conclusions, that the nature, extent and quality of the services provided to the Fund under the Management Agreement supported the continuation of the Management Agreement.
Investment performance
The Board carefully reviewed the investment performance of the Fund, including detailed reports providing the results of analyses performed by each of the Investment Manager, Broadridge and JDL collectively showing, for various periods (including since manager inception): (i) the performance of the Fund, (ii) the Fund's performance relative to peers and benchmarks and (iii) the net assets of the Fund. The Board observed that Fund performance was well within the range of that of its peers.
The Board also reviewed a description of the third-party data provider's methodology for identifying the Fund's peer groups for purposes of performance and expense comparisons.
The Board also considered the Investment Manager's performance and reputation generally. After reviewing these and related factors, the Board concluded, within the context of their overall conclusions, that the performance of the Fund and the Investment Manager, in light of other considerations, supported the continuation of the Management Agreement.
Comparative fees, costs of services provided and the profits realized by the Investment Manager and its affiliates from their relationships with the Fund
The Board reviewed comparative fees and the costs of services provided under the Management Agreement. The Board members considered detailed comparative information set forth in an annual report on fees and expenses, including, among other things, data (based on analyses conducted by Broadridge and JDL) showing a comparison of the Fund's expenses with median expenses paid by funds in its comparative peer universe, as well as data showing the Fund's contribution to the Investment Manager's profitability.
30
Columbia Variable Portfolio - Large Cap Index Fund | 2024
Approval of Management Agreement(continued)(Unaudited)
The Board considered the reports of JDL, which assisted in the Board's analysis of the Funds' performance and expenses and the reasonableness of the Funds' fee rates. The Board accorded particular weight to the notion that a primary objective of the level of fees is to achieve a rational pricing model applied consistently across the various product lines in the Fund family, while assuring that the overall fees for each Fund (with certain exceptions) are generally in line with the current "pricing philosophy" such that Fund total expense ratios, in general, approximate or are lower than the median expense ratios of funds in the same Lipper comparison universe. The Board took into account that the Fund's total expense ratio (after considering proposed expense caps/waivers) approximated the peer universe's median expense ratio.
After reviewing these and related factors, the Board concluded, within the context of their overall conclusions, that the levels of management fees and expenses of the Fund, in light of other considerations, supported the continuation of the Management Agreement.
The Board also considered the profitability of the Investment Manager and its affiliates in connection with the Investment Manager providing management services to the Fund. With respect to the profitability of the Investment Manager and its affiliates, the Independent Trustees referred to information discussing the profitability to the Investment Manager and Ameriprise Financial from managing, operating and distributing the Funds. The Board considered that the profitability generated by the Investment Manager in 2023 had declined from 2022 levels, due to a variety of factors, including the decreased assets under management of the Funds. It also took into account the indirect economic benefits flowing to the Investment Manager or its affiliates in connection with managing or distributing the Funds, such as the enhanced ability to offer various other financial products to Ameriprise Financial customers, soft dollar benefits and overall reputational advantages. The Board noted that the fees paid by the Fund should permit the Investment Manager to offer competitive compensation to its personnel, make necessary investments in its business and earn an appropriate profit. After reviewing these and related factors, the Board concluded, within the context of their overall conclusions, that the costs of services provided and the profitability to the Investment Manager and its affiliates from their relationships with the Fund supported the continuation of the Management Agreement.
Economies of scale
The Board considered the economies of scale that might be realized as the Fund's net asset level grows and took note of the extent to which Fund shareholders might also benefit from such growth. The Board took into account, however, that the Management Agreement already provides for a relatively low flat fee regardless of the Fund's asset level, and requires Columbia Threadneedle to provide investment advice, as well as administrative, accounting and other services to the Fund.
Conclusion
The Board reviewed all of the above considerations in reaching its decision to approve the continuation of the Management Agreement. In reaching its conclusions, no single factor was determinative.
On June 27, 2024, the Board, including all of the Independent Trustees, determined that fees payable under the Management Agreement were fair and reasonable in light of the extent and quality of services provided and approved the renewal of the Management Agreement.
Columbia Variable Portfolio - Large Cap Index Fund | 2024
31
Columbia Variable Portfolio - Large Cap Index Fund
P.O. Box 219104
Kansas City, MO 64121-9104
Please read and consider the investment objectives, risks, charges and expenses for any fund carefully before investing. For Fund and other investment product prospectuses, which contain this and other important information, contact your financial advisor or insurance representative. Please read the prospectus carefully before you invest. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved. Columbia Management Investment Distributors, Inc., 290 Congress Street, Boston, MA 02210
© 2024 Columbia Management Investment Advisers, LLC.
SAR7014_12_P01_(08/24)


Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.

Not applicable.



Item 9. Proxy Disclosures for Open-End Management Investment Companies.

Not applicable.



Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.

Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies is included in Item 7 of this Form N-CSR.



Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.

Statement regarding basis for approval of Investment Advisory Contract is included in Item 7 of this Form N-CSR.



Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.



Item 13. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.



Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.



Item 15. Submission of Matters to a Vote of Security Holders.

There were no material changes to the procedures by which shareholders may recommend nominees to the registrant's board of directors implemented since the registrant last provided disclosure as to such procedures in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K or Item 15 of Form N-CSR.



Item 16. 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-CSR 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 period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.



Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable.



Item 18. Recovery of Erroneously Awarded Compensation.

Not applicable.



Item 19. Exhibits.

(a)(1) Not applicable.

(a)(2) 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.

(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) attached hereto as Exhibit 99.906CERT.


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 Funds Variable Series Trust II

By (Signature and Title) /s/ Daniel J. Beckman
Daniel J. Beckman, President and Principal Executive Officer

Date August 22, 2024

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/ Daniel J. Beckman
Daniel J. Beckman, President and Principal Executive Officer

Date August 22, 2024

By (Signature and Title) /s/ Michael G. Clarke
Michael G. Clarke, Chief Financial Officer,
Principal Financial Officer and Senior Vice President

Date August 22, 2024

By (Signature and Title) /s/ Charles H. Chiesa
Charles H. Chiesa, Treasurer, Chief Accounting
Officer and Principal Financial Officer

Date August 22, 2024