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 811-01449
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Columbia Growth Fund, Inc.
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(Exact name of registrant as specified in charter)
One Financial Center, Boston, Massachusetts 02111
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(Address of principal executive offices) (Zip code)
Russell L. Kane, Esq.
Columbia Management Group, Inc.
One Financial Center
Boston, MA 02111
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(Name and address of agent for service)
Registrant's telephone number, including area code: 1-617-426-3363
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Date of fiscal year end: December 31, 2003
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Date of reporting period: June 30, 2003
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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, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
COLUMBIA FUNDS
Semiannual Report
June 30, 2003
COLUMBIA COMMON STOCK FUND
COLUMBIA GROWTH FUND
COLUMBIA INTERNATIONAL STOCK FUND
COLUMBIA SPECIAL FUND
COLUMBIA SMALL CAP FUND
COLUMBIA REAL ESTATE EQUITY FUND
COLUMBIA TECHNOLOGY FUND
COLUMBIA STRATEGIC VALUE FUND
COLUMBIA BALANCED FUND
COLUMBIA SHORT TERM BOND FUND
COLUMBIA FIXED INCOME SECURITIES FUND
COLUMBIA NATIONAL MUNICIPAL BOND FUND
COLUMBIA OREGON MUNICIPAL BOND FUND
COLUMBIA HIGH YIELD FUND
COLUMBIA DAILY INCOME COMPANY
[Photo of Women Standing]
NOT FDIC MAY LOSE VALUE
INSURED NO BANK GUARANTEE
TABLE OF CONTENTS
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COLUMBIA FUNDS SEMIANNUAL REPORT
JUNE 30, 2003
INTRODUCTION 1 TO OUR SHAREHOLDERS
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INVESTMENT 4 COLUMBIA COMMON STOCK FUND
REVIEWS 6 COLUMBIA GROWTH FUND
8 COLUMBIA INTERNATIONAL STOCK FUND
10 COLUMBIA SPECIAL FUND
12 COLUMBIA SMALL CAP FUND
14 COLUMBIA REAL ESTATE EQUITY FUND
16 COLUMBIA TECHNOLOGY FUND
18 COLUMBIA STRATEGIC VALUE FUND
20 COLUMBIA BALANCED FUND
22 COLUMBIA SHORT TERM BOND FUND
24 COLUMBIA FIXED INCOME SECURITIES FUND
26 COLUMBIA NATIONAL MUNICIPAL BOND FUND
28 COLUMBIA OREGON MUNICIPAL BOND FUND
30 COLUMBIA HIGH YIELD FUND
32 COLUMBIA DAILY INCOME COMPANY
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FINANCIAL 33 FINANCIAL HIGHLIGHTS
INFORMATION 78 SCHEDULES OF INVESTMENTS
130 STATEMENTS OF ASSETS AND LIABILITIES
134 STATEMENTS OF OPERATIONS
138 STATEMENTS OF CHANGES IN NET ASSETS
142 NOTES TO FINANCIAL STATEMENTS
COLUMBIA FUNDS
COLUMBIA FINANCIAL CENTER
1301 SW FIFTH AVENUE
PORTLAND, OR 97201-5601
1-800-547-1707
LIBERTYFUNDS.COM
TO OUR SHAREHOLDERS
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We are pleased to present the Columbia Funds 2003 semiannual report. In the
following pages, you will find detailed financial information as well as a
discussion of investment activity and management strategy for the 15 Columbia
funds for the six months ended June 30, 2003. But first, we'd like to offer an
overview of the market and economic climate in which the funds performed.
A STRONG OUTCOME DESPITE ECONOMIC WEAKNESS AND WAR
Despite the uncertainty that hung over the markets and the economy early in the
year as the nation prepared to go to war in Iraq, the six-month period ended on
a high note for investors. Virtually all major segments of the stock and bond
markets posted gains for the period. The economy, although it is still
struggling, has made steady progress toward recovery. Corporate profits have
moved higher. Consumer spending has remained strong, although the rate of
spending growth has slowed. A new tax law and yet another cut in short-term
interest rates are expected to further stimulate an economy that is poised to
move higher. Rising unemployment continued to weigh on consumer confidence.
Measures of consumer confidence lifted off pre-war lows, then slipped again in
June. However, employment is considered a lagging indicator of economic growth.
We remain hopeful that once companies demonstrate the ability to generate solid
earnings, the jobs picture will brighten.
Global markets took their cues from the United States. Early in the period,
impending war, the outbreak of SARS and renewed threats of terrorism restrained
most major foreign economies. Growth continued among smaller, emerging
economies. In May, the euro hit an all time high against the dollar then
retreated in the final month of the period. The dollar's slide has made it more
difficult for European companies to compete with their US and Asian counterparts
in dollar based markets. Japan's economy was stagnant in the first quarter, but
showed signs of a modest revival in the second quarter--enough to push the
Japanese stock market higher.
A STRONG COMEBACK FOR EQUITY MARKETS
The US stock market staged a solid advance in the second half of this six-month
period. In general, the riskiest investments were the strongest performers. As
confidence rebounded after a relatively speedy conclusion to the major military
campaigns in Iraq, investors were inspired to consider the attractive valuations
that were available from beaten-down technology and telecommunications stocks.
Dividend-paying utilities stocks also did well as a result of the new, lower tax
on dividend income.
1
TO OUR SHAREHOLDERS
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Small-cap stocks led large-cap stocks, reflecting investor expectations that
smaller companies would benefit most from a stronger economy. The S&P 500 Index
returned 11.75% for the period. By contrast, the Russell 2000 Index, a common
measure of smaller companies, gained 17.88%. The Nasdaq, which is heavily
weighted toward technology stocks, rose 15.60%. Declining interest rates helped
real estate remain strong during the period. The NAREIT Index returned 13.87%.
International equity markets rebounded, but lagged the US markets. The MSCI EAFE
Index, a measure of stock market performance in major developed countries,
returned 9.47%.
HIGHER-RISK SECTORS DOMINATE THE BOND MARKET
A rally in high-yield and investment-grade corporate bonds, which began in the
fourth quarter of 2002, continued throughout the period. Expectations for a
second-half economic recovery made investors willing to invest in higher-risk
sectors of the market. The Merrill Lynch US High Yield, Cash Pay Index returned
17.24% and the Lehman Brothers Government/Credit Index gained 5.23%. Declining
interest rates benefited Treasury and municipal bonds, but their returns lagged
for the period. Mortgage bonds were the weakest performers. A flurry of
prepayment activity during the period hurt the mortgage sector. Declining
short-term interest rates were hard on money market funds, which reported
annualized yields below 1.0% for the first time ever.
DIVERSIFICATION STILL A SOUND APPROACH
For investors, the improved environment serves as an important reminder that
diversification is still the easiest way to ensure exposure to a top-performing
asset class. Exiting a market when it is declining, then trying to pick a point
to come back in when it is rising is a sure way to lose out on both ends. If
your portfolio is in need of diversification, talk to your financial advisor
about the best way to achieve it--and to keep it on track.
CONSOLIDATION UNDER A NEW NAME
We are pleased to announce that, effective April 1, 2003, six of the asset
management firms brought together when Columbia Management Group, Inc. was
formed were consolidated and renamed Columbia Management Advisors, Inc. This
consolidation does not affect the management or investment objectives of your
fund and is the next step in our efforts to create a consistent identity and to
streamline our organization. By consolidating these firms, we are
2
TO OUR SHAREHOLDERS
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able to create a more efficient organizational structure and strengthen certain
key functions, such as research. Although the name of the asset manager has
changed, what hasn't changed is the commitment of our specialized investment
teams to a multi-disciplined approach to investing, focused on our goal of
offering shareholders the best products and services.
Sincerely,
/s/ Jeff B. Curtis /s/ Richard J. Johnson
Jeff B. Curtis Richard J. Johnson
Chief Operations Officer - West Coast Chief Investment Officer - West Coast
3
INVESTMENT REVIEWS
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COLUMBIA COMMON STOCK FUND
PERFORMANCE OF A $10,000 INVESTMENT
6/30/93 - 6/30/03
WITHOUT WITH
SALES CHARGE SALES CHARGE
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Class A $ 21,967 $ 20,700
Class B 21,845 21,845
Class D 21,845 21,632
Class Z 22,024 n/a
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GROWTH OF $10,000
OVER 10 YEARS
(Mountain Chart)
CLASS A SHARES WITHOUT CLASS A SHARES
SALES CHARGE WITH SALES CHARGE S&P 500 INDEX
- ------------------------- ----------------- -------------
6/30/93 10000 9425 10000
9987 9413 9960
10434 9834 10337
10506 9902 10258
10619 10008 10470
10454 9853 10371
10692 10077 10496
11034 10399 10853
10831 10208 10559
10418 9819 10100
10572 9964 10229
10775 10156 10396
10417 9818 10141
10833 10210 10474
11171 10529 10902
10896 10270 10636
10953 10323 10874
10684 10069 10478
10910 10283 10633
11004 10371 10909
11457 10798 11333
11694 11022 11668
11824 11144 12011
12207 11505 12490
12388 11676 12780
12860 12120 13203
12976 12230 13236
13425 12653 13794
13235 12474 13744
13832 13037 14346
14273 13453 14623
14542 13706 15121
14764 13915 15261
15071 14205 15408
15279 14401 15634
15594 14697 16036
15694 14792 16097
14961 14101 15385
15570 14675 15710
16180 15250 16593
16234 15300 17051
17333 16336 18338
17227 16236 17975
17799 16775 19097
17968 16935 19248
17706 16688 18459
18200 17153 19559
19259 18151 20754
20048 18896 21677
21480 20245 23401
20851 19652 22090
21741 20491 23299
20919 19716 22520
21243 20022 23563
21596 20354 23968
21723 20474 24232
22949 21629 25979
24036 22654 27309
24056 22672 27588
23584 22228 27113
24980 23544 28214
24696 23276 27915
21026 19817 23881
22117 20845 25412
23457 22109 27476
24926 23492 29141
27271 25703 30819
28523 26883 32107
27807 26208 31109
29272 27589 32353
29732 28022 33605
28938 27274 32812
31019 29235 34627
30067 28338 33550
29519 27822 33382
28970 27305 32467
30694 28929 34522
31790 29962 35223
34298 32326 37294
32991 31094 35422
34321 32347 34753
37856 35679 38152
36671 34562 37003
35105 33087 36245
36685 34576 37136
36245 34161 36557
38488 36275 38827
35605 33558 36777
34477 32494 36623
31722 29898 33737
32334 30475 33902
32945 31051 35106
29371 27682 31907
27497 25916 29888
29636 27932 32207
29770 28058 32423
28960 27295 31635
28389 26757 31325
26450 24929 29367
23914 22539 26997
24366 22965 27513
26278 24767 29623
26646 25114 29884
25927 24436 29447
25393 23933 28879
26246 24737 29965
24485 23077 28149
24512 23102 27944
22671 21367 25954
20576 19393 23932
20790 19595 24088
18601 17531 21472
20136 18978 23359
21471 20236 24733
19993 18844 23281
19538 18414 22673
19149 18048 22333
19256 18149 22550
20785 19590 24406
21737 20487 25689
6/30/03 21967 20700 26018
MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT LIBERTYFUNDS.COM FOR
DAILY PERFORMANCE UPDATES.
Past performance is no guarantee of future results. The principal value and
investment returns will fluctuate, resulting in a gain or loss on sale. The
above illustration assumes a $10,000 investment made on June 30, 1993, and
reinvestment of income and capital gains distributions. The S&P 500 Index tracks
the performance of 500 large-capitalization US stocks. Unlike the fund, indices
are not investments, do not incur fees, and are not professionally managed. It
is not possible to invest directly in an index. Securities in the fund may not
match those in an index.
For the six-month period ended June 30, 2003, Columbia Common Stock Fund class A
shares returned 9.86% without sales charge. The fund trailed its benchmark, the
S&P 500 Index, which returned 11.75% over the same period. It also fell short of
the average return of its peer group, the Lipper Large Cap Core Category, which
was 10.42%.1 The fund trailed its benchmark because of its relatively light
exposure to technology and utility stocks, which were strong performers during
the period. We believe that our technology and utility weights also hurt
performance relative to our peer group. Stock selection in the
telecommunications, technology, energy and industrial sectors further hampered
performance.
STOCKS DECLINE IN FIRST QUARTER OF PERIOD, THEN SOAR IN SECOND
During the first three months of the period, a weak stock market reflected
investor fears about an impending war in Iraq, rising unemployment and generally
weak economic growth. The manufacturing sector reported falling sales and higher
inventories. During this period, we built up our position in out-of-favor
cyclical stocks. Specifically, in consumer cyclicals that are related to travel,
we added Carnival, Royal Caribbean Cruises and Hilton Hotels (0.5%, 1.1% and
0.5% of net assets, respectively).2In the retail area, we bought shares of
Target and Home Depot (1.6% and 1.5% of net assets, respectively).
In the second quarter, investor psychology shifted. The United States declared a
swift military victory in Iraq and corporate profits rose, a sign that the
economy might finally be on the mend. The prospects of lower tax rates on income
and dividends added to the positive mood. Home mortgage and U.S. Treasury rates
reached 45-year lows.
AVERAGE ANNUAL TOTAL RETURN (%) As of June 30, 2003
CLASS A CLASS B CLASS D CLASS Z
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Inception date 11/1/02 11/1/02 11/1/02 10/1/91
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WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
SALES SALES SALES SALES SALES SALES SALES
CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE
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6-month (cumulative) 9.86 3.54 9.39 4.39 9.32 7.23 10.06
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1-year -3.12 -8.71 -3.66 -8.46 -3.66 -5.57 -2.87
------- ------ ------- ------ ------- ------ -------
5-year -2.55 -3.69 -2.65 -2.94 -2.65 -2.85 -2.50
------- ------ ------- ------ ------- ------ -------
10-year 8.19 7.55 8.13 8.13 8.13 8.02 8.22
------- ------ ------- ------ ------- ------ -------
Past performance is no guarantee of future investment results. The principal
value and investment returns will fluctuate, resulting in a gain or loss on
sale. All results shown assume reinvestment of distributions, if any. The "with
sales charge" returns include the maximum 5.75% charge for class A shares, the
appropriate class B contingent deferred sales charge (CDSC) for the holding
period after purchase as follows: through first year-5%, second year-4%, third
year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the
class D sales charge of 1% which also carries a CDSC of 1% that is applied to
shares sold within the first year after they are purchased. Performance for
different share classes will vary based on differences in sales charges and fees
associated with each class.
Performance results reflect any voluntary waivers or reimbursement of fund
expenses by the advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower.
Classes A, B, and D (newer class shares) share performance information includes
returns of the fund's class Z shares (the oldest existing fund class) for
periods prior to the inception of the newer class shares. These class Z share
returns are not restated to reflect any expense differential (e.g., Rule 12b-1
fees) between class Z shares and the newer class shares. Had the expense
differential been reflected, the returns for the periods prior to the inception
of classes A, B and D would have been lower.
4
INVESTMENT REVIEWS
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Refinanced mortgages gave consumers money to pay down debt and make new
investments with their improved balance sheets.
In this environment, stock prices rose rapidly as the mood shifted from
fear to optimism. Shares of lower quality, speculative stocks rose the fastest.
Our lack of representation among these issues hurt the fund's performance, but
we believe that our strategy of owning higher quality stocks will prove itself
over the long term.
As the market looked ahead to an improving economy, we took profits in some of
our retail stocks. We also sold our stakes in transportation and basic materials
companies that consume energy, as energy prices remained stubbornly high. We
added money center banks J.P. Morgan Chase and Citigroup (1.7% and 4.1% of net
assets, respectively), which we believe have the potential to do well in a
strengthening economy. And we continued to cut back on our exposure to the more
defensive consumer staples sector, believing there are better opportunities
elsewhere.
A GENERALLY POSITIVE OUTLOOK
We expect the combination of lower tax rates, lower mortgage payments and recent
stock market gains to create a positive economic backdrop. This environment
should allow for very depressed capital spending to pick up after three years of
abysmal growth. To a certain extent, the market has anticipated this improved
outlook, which could mean a period of consolidation is forthcoming. If so, we
could see prices on speculative stocks give back some of their recent gains.
Against this mixed backdrop, we will continue to look for stocks of larger,
established companies with management teams that are making sound capital
allocation decisions to create shareholder value.
SCOTT DRYSDALE, RON GIBBS, GUY POPE AND TRENT NEVILLS
ON BEHALF OF THE COLUMBIA COMMON STOCK FUND TEAM
An investment in the fund may present certain risks, including stock market
fluctuations that occur in response to economic and business developments; and a
greater degree of social, political and economic volatility with international
investing.~ The fund may invest in foreign securities, which have special risks,
including political or economic instability and higher transaction costs;
different regulations, accounting standards, trading practices and levels of
information; and currency exchange rate fluctuations.~
TOP TEN HOLDINGS
% of net assets
June 30, 2003 (unaudited)
Citigroup 4.1
Pfizer 4.0
Microsoft 3.5
General Electric 2.5
Bank of America 2.1
American Express 2.0
McDonald's 1.8
Altria Group 1.8
J.P. Morgan Chase 1.7
Johnson & Johnson 1.7
Because the fund is actively managed, there is no guarantee the fund will
continue to maintain these holdings in the future.
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TOP FIVE SECTORS
% of net assets
June 30, 2003 (unaudited)
Financials 20.3
Health care 16.7
Consumer discretionary 16.3
Information technology 16.2
Industrials 9.5
Because the fund is actively managed, there is no guarantee the fund will
continue to maintain these sectors in the future.
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1 Lipper, Inc., a widely respected data provider in the industry, calulates an
average total return for mutual funds with similar investment objectives as
the fund.
2 Holdings are disclosed as of June 30, 2003 and are subject to change.
5
INVESTMENT REVIEWS
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COLUMBIA GROWTH FUND
PERFORMANCE OF A $10,000 INVESTMENT
6/30/93 - 6/30/03
WITHOUT SALES CHARGE WITH SALES CHARGE
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Class A $19,416 $18,298
Class B 19,342 19,342
Class D 19,333 19,137
Class G 19,342 19,342
Class Z 19,474 n/a
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GROWTH OF $10,000
OVER 10 YEARS
(Mountain Chart)
Class A shares
without sales Class A shares Russel 1000
charge with sales charge S&P 500 Index Growth Index
- -------------- ---------------------- ------------- ------------
6/30/93 10000 9425 10000 10000
9934 9363 9821 9960
10432 9832 10225 10337
10575 9967 10149 10258
10772 10153 10431 10470
10510 9905 10361 10371
10823 10200 10539 10496
11167 10525 10784 10853
11113 10474 10587 10559
10453 9852 10075 10100
10560 9953 10122 10229
10592 9983 10275 10396
10194 9608 9971 10141
10625 10014 10312 10474
11031 10397 10887 10902
10764 10145 10740 10636
10966 10335 10992 10874
10605 9995 10639 10478
10754 10136 10818 10633
10780 10160 11050 10909
11304 10654 11513 11333
11711 11038 11849 11668
11875 11192 12108 12011
12143 11445 12530 12490
12602 11878 13013 12780
13100 12347 13555 13203
13329 12563 13569 13236
13680 12893 14195 13794
13330 12563 14205 13744
14162 13347 14758 14346
14302 13479 14842 14623
14451 13620 15337 15121
15112 14243 15618 15261
15060 14194 15638 15408
15558 14663 16050 15634
16009 15089 16610 16036
16004 15084 16633 16097
14806 13954 15658 15385
15309 14429 16062 15710
16205 15273 17232 16593
16491 15543 17335 17051
17497 16491 18637 18338
17275 16282 18272 17975
17882 16853 19552 19097
17898 16869 19419 19248
16987 16010 18369 18459
17829 16804 19589 19559
19043 17948 21003 20754
19836 18695 21843 21677
21595 20353 23774 23401
20802 19606 22383 22090
21628 20385 23484 23299
21083 19871 22615 22520
21667 20421 23577 23563
21819 20564 23841 23968
22404 21115 24553 24232
24050 22667 26400 25979
25188 23740 27453 27309
25263 23811 27832 27588
24655 23237 27042 27113
26523 24998 28697 28214
26136 24633 28507 27915
21834 20579 24228 23881
22649 21346 26089 25412
23919 22544 28187 27476
25495 24029 30332 29141
28445 26810 33067 30819
30237 28499 35009 32107
29233 27553 33409 31109
31008 29225 35169 32353
31067 29281 35215 33605
30290 28549 34134 32812
32586 30712 36523 34627
31449 29641 35362 33550
30587 28828 35938 33382
30018 28292 35184 32467
31699 29877 37840 34522
33224 31314 39883 35223
35849 33787 44031 37294
34626 32635 41966 35422
36590 34486 44018 34753
40468 38141 47170 38152
38817 36585 44925 37003
36368 34277 42660 36245
39593 37317 45894 37136
39380 37115 43980 36557
42554 40107 47961 38827
38830 36598 43423 36777
36528 34427 41370 36623
32195 30344 35272 33737
33000 31103 34157 33902
34871 32866 36517 35106
29313 27627 30317 31907
26118 24616 27018 29888
29388 27698 30436 32207
29073 27402 29989 32423
28440 26804 29293 31635
27219 25654 28561 31325
24873 23443 26224 29367
22179 20904 23607 26997
23430 22083 24846 27513
25883 24395 27234 29623
25938 24446 27183 29884
24872 23442 26701 29447
23556 22202 25593 28879
24458 23052 26479 29965
22414 21125 24318 28149
22149 20875 23730 27944
19941 18794 21535 25954
18021 16984 20350 23932
18294 17242 20411 24088
16425 15480 18295 21472
17806 16782 19972 23359
18600 17531 21057 24733
17235 16244 19602 23281
16854 15885 19125 22673
16755 15791 19037 22333
17028 16049 19392 22550
18335 17281 20825 24406
19228 18123 21864 25689
6/30/03 19416 18298 22165 26018
MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT LIBERTYFUNDS.COM FOR
DAILY PERFORMANCE UPDATES.
Past performance is no guarantee of future investment results. The principal
value and investment returns will fluctuate, resulting in a gain or loss on
sale. The above illustration assumes a $10,000 investment made on June 30,1993,
and reinvestment of income and capital gains distributions. The S&P 500 Index
tracks the performance of 500 large-capitalization US stocks. The Russell 1000
Growth Index is an unmanaged index that measures the performance of those
Russell 1000 companies with higher price-to-book ratios and higher forecasted
growth values (the Russell 1000 Index measures the performance of the 1000
largest US companies based on total market capitalization). Unlike the fund,
indices are not investments, do not incur fees, and are not professionally
managed. It is not possible to invest directly in an index. Securities in the
fund may not match those in an index.
The stock market rebounded in the first half of 2003, as investors became less
risk averse and the economic outlook improved. Geopolitical uncertainties eased
and first quarter profits beat expectations. Together, these factors helped push
the S&P 500 Index to an 11.75% return for the six months ended June 30, 2003.
During the same period, the fund's class A shares returned 12.67% without sales
charge. This was modestly ahead of the Lipper Large Cap Growth Funds Category
average, which returned 12.28%. The Russell 1000 Growth Index returned 13.09%.1
Keep in mind that the index does not incur expenses, which the fund and its peer
group must pay. The fund benefited from strong stock selection, particularly in
the health care, financial services and technology sectors. Investments in the
energy, consumer discretionary and consumer staples sectors detracted slightly
from performance.
HEALTH CARE AND FINANCIAL SERVICES BOOST RETURNS
We invested heavily in health care, focusing on generic pharmaceutical, medical
device, and biotechnology companies. All these did well during the period. Top
performers included Teva Pharmaceutical Industries (1.1% of net assets), an
Israeli-based generic pharmaceutical company that benefited as more branded
drugs came off patent and Congress proposed new Medicare benefits. Amgen (2.8%
of net assets), a biotechnology company, also rallied as sales exceeded
expectations. However, Pfizer (6.5% of net assets), went up less than most drug
stocks as prospects for branded pharmaceuticals weakened. Stocks in the
financial area, such as Goldman Sachs Group (0.8% of net assets), benefited from
increased trading and merger and acquisition activity. Citigroup (3.2% of net
assets) also rallied as concerns about the company's legal liabilities
dissipated and the outlook for its lending and brokerage businesses improved.2
AVERAGE ANNUAL TOTAL RETURN (%) As of June 30, 2003
CLASS A CLASS B CLASS D CLASS G CLASS Z
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INCEPTION DATE 11/1/02 11/1/02 11/1/02 11/1/02 6/16/67
- ------------------------------------------------------------------------------------------------------------------------------------
WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
6-month (cumulative)12.67 6.20 12.30 7.30 12.25 10.14 12.24 7.24 12.90
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1-year -2.61 -8.21 -2.99 -7.84 -3.03 -4.95 -2.99 -7.84 -2.32
- ------------------------------------------------------------------------------------------------------------------------------------
5-year -6.05 -7.15 -6.12 -6.41 -6.13 -6.32 -6.12 -6.56 -5.99
- ------------------------------------------------------------------------------------------------------------------------------------
10-year 6.86 6.23 6.82 6.82 6.81 6.71 6.82 6.82 6.89
- ------------------------------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal
value and investment returns will fluctuate, resulting in a gain or loss on
sale. All results shown assume reinvestment of distributions, if any. The "with
sales charge" returns include the maximum 5.75% charge for class A shares, the
appropriate class B contingent deferred sales charge (CDSC) for the holding
period after purchase as follows: through the first year-5%, second year-4%,
third year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and
the class D sales charge of 1% which also carries a CDSC of 1% that is applied
to shares sold within the first year after they are purchased. For class G
shares, the CDSC for the holding period after purchase is as follows: through
first year-5%, second year-4%, third year-4%, fourth year-4%, fifth year-3%,
sixth year-2%, seventh year-1%, thereafter-0%. Performance for different share
classes will vary based on differences in sales charges and fees associated with
each class.
Performance results reflect any voluntary waivers or reimbursement of fund
expenses by the advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower.
Classes A, B, D and G (newer class shares) share performance information
includes returns of the fund's class Z shares (the oldest existing fund class)
for periods prior to the inception of the newer class shares. These class Z
share returns are not restated to reflect any expense differential (e.g., Rule
12b-1 fees) between class Z shares and the newer class shares. Had the expense
differential been reflected, the returns for the periods prior to the inception
of classes A, B, D and G would have been lower.
6
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
SHIFT TO MORE CYCLICAL STOCKS ALSO HELPS
The fund began the year diversified across sectors with roughly equal mixes of
stable growth stocks and cyclical (or economically-sensitive) stocks. When
military success in Iraq began to look likely, we started to increase our
exposure to cyclical stocks and reduce the fund's stake in more stable growth
companies. By period end, cyclical stocks had reached about two-thirds of
assets. Some of our biggest additions and strongest gains came from the
technology sector, where orders increased modestly after declining for several
years.
Within technology, we focused on stocks that we expect to benefit from the rapid
deployment of broadband. As cable companies and regional carriers raced to sign
up new households, telecommunications equipment and components companies,
including both PMC-Sierra and Cisco Systems benefited (1.0% and 2.7% of net
assets, respectively). Internet service companies also did well as usage
increased. We added a new position in InterActive Corp, while increasing our
investment in eBay (0.8% and 0.8% of net assets, respectively). We also targeted
companies that benefit as the wireless Internet, known as WiFi, expands to
public places. In this regard, we invested in Marvell Technology Group (0.9% of
net assets), a semiconductor company.
OUR OUTLOOK FOR STOCKS AND ECONOMIC RECOVERY IS CONSTRUCTIVE
We believe the economic and profit recovery will be better than expected. In the
early phases of a recovery, companies typically repair their balance sheets--a
process that has been underway for some time now. Next, they start generating
cash, which is also well underway. Now, we think that we're on the brink of the
final phase of recovery. This phase is exemplified by companies aiming to
increase revenues which will require increased investments in capital and human
resources. Our plan is to maintain the fund's cyclical bias with a focus on high
quality companies that have good competitive positions and strong prospects for
growth in an improving environment.
ALEXANDER S. MACMILLAN
PORTFOLIO MANAGER
An investment in the fund may present certain risks, including stock market
fluctuations that occur in response to economic and business developments. The
fund may invest in foreign securities, which have special risks, including
political or economic instability and higher transaction costs; different
regulations, accounting standards, trading practices and levels of information;
and currency exchange rate fluctuations.
TOP TEN HOLDINGS
% of net assets
June 30, 2003 (unaudited)
Pfizer 6.5
Microsoft 4.7
General Electric 3.4
Citigroup 3.2
Amgen 2.8
Cisco Systems 2.7
Johnson & Johnson 2.7
Wal-Mart Stores 2.5
Dell Computer 2.0
PepsiCo 2.0
Because the fund is actively managed, there is no guarantee the fund will
continue to maintain these holdings in the future.
----------------------
TOP FIVE SECTORS
% of net assets
June 30, 2003 (unaudited)
Information technology 27.8
Health care 25.4
Consumer discretionary 15.4
Consumer staples 11.1
Financials 7.6
Because the fund is actively managed, there is no guarantee the fund will
continue to maintain these sectors in the future.
- ---------------------
1 Lipper Inc., a widely respected data provider in the industry, calculates an
average total return for mutual funds with similar investment objectives as
those of the fund.
2 Holdings are disclosed as of June 30, 2003 and are subject to change.
7
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
COLUMBIA INTERNATIONAL STOCK FUND
PERFORMANCE OF A $10,000 INVESTMENT
6/30/93 - 6/30/03
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
Class A $ 16,669 $ 15,717
Class B 16,546 16,546
Class D 16,592 16,424
Class Z 16,747 n/a
----------------------
GROWTH OF $10,000
OVER 10 YEARS
(Mountain Chart)
CLASS A SHARES CLASS A SHARES MSCI ALL COUNTRY
WITHOUT WITH WORLD MSCI EAFE
SALES CHARGE SALES CHARGE FREE EX US INDEX INDEX
- --------------- --------------- ---------------- ---------
6/30/93 10000 9425 10000 10000
10457 9856 10333 10350
10951 10321 10888 10909
10885 10259 10664 10663
11361 10707 11050 10992
10988 10356 10208 10031
12367 11656 11004 10755
13016 12268 11908 11664
12902 12160 11818 11632
12320 11611 11277 11130
12644 11917 11659 11602
12529 11808 11662 11536
12586 11863 11745 11699
12634 11908 11937 11811
13007 12259 12338 12091
12569 11846 12032 11710
12959 12214 12355 12100
12292 11585 11760 11518
12063 11370 11733 11591
11142 10501 11200 11146
10948 10318 11140 11113
11365 10711 11769 11807
11617 10949 12228 12251
11481 10821 12173 12105
11433 10776 12005 11893
12190 11489 12686 12634
11986 11297 12245 12153
12278 11572 12455 12390
12141 11443 12122 12056
12384 11672 12407 12391
12685 11956 12899 12891
12850 12111 13075 12944
12850 12111 13075 12988
13326 12559 13320 13263
13831 13035 13723 13649
14053 13245 13517 13398
14306 13484 13586 13473
13568 12788 13135 13079
13781 12989 13212 13108
14131 13319 13539 13457
14053 13245 13404 13320
14597 13758 13921 13850
14790 13939 13760 13671
14780 13930 13507 13193
15196 14323 13754 13409
15345 14463 13725 13457
15707 14804 13840 13529
16614 15658 14695 14409
17403 16402 15507 15203
17925 16894 15820 15450
16538 15587 14575 14295
17669 16653 15363 15096
16443 15497 14056 13935
16369 15427 13880 13793
16486 15538 14040 13913
16618 15663 14460 14549
17293 16299 15424 15483
17883 16854 15958 15960
18328 17274 16073 16086
18581 17512 15782 16007
18640 17569 15722 16129
18748 17670 15871 16291
16197 15265 13633 14273
15343 14461 13346 13835
16583 15629 14743 15276
17739 16719 15535 16059
18603 17533 16071 16691
19168 18066 16053 16641
18699 17623 15693 16245
19181 18078 16451 16923
19772 18635 17274 17608
19074 17977 16462 16701
20048 18896 17219 17352
20866 19667 17624 17868
21323 20097 17686 17934
21769 20517 17806 18115
22949 21629 18468 18794
25838 24353 19207 19447
29378 27689 21039 21193
27974 26365 19897 19847
29829 28113 20434 20381
29339 27652 21202 21172
26904 25357 20019 20058
24819 23392 19507 19569
25849 24363 20338 20334
24665 23247 19534 19482
25413 23951 19777 19651
23842 22471 18679 18694
22774 21464 18085 18253
21745 20494 17273 17569
22730 21423 17862 18192
22607 21307 18130 18183
21391 20161 16694 16819
19912 18768 15514 15698
21143 19927 16569 16789
20820 19622 16111 16196
20143 18985 15493 15534
19482 18362 15149 15251
19112 18013 14773 14865
17220 16230 13206 13359
17697 16679 13575 13701
18113 17071 14196 14207
18531 17466 14379 14291
17714 16696 13764 13532
17838 16812 13863 13626
18669 17596 14674 14429
18763 17684 14710 14458
18948 17859 14871 14642
18441 17380 14228 14059
16855 15886 12841 12671
16701 15741 12842 12642
14991 14129 11481 11284
15535 14642 12096 11890
16031 15109 12678 12430
15552 14657 12269 12012
14855 14001 11838 11511
14638 13796 11598 11248
14530 13694 11373 11027
15535 14642 12469 12108
16386 15444 13263 12842
6/30/03 16669 15717 13631 13153
MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT LIBERTYFUNDS.COM FOR
DAILY PERFORMANCE UPDATES.
Past performance is no guarantee of future investment results. The principal
value and investment returns will fluctuate, resulting in a gain or loss on
sale. The above illustration assumes a $10,000 investment made on June 30, 1993,
and reinvestment of income and capital gains distributions. The Morgan Stanley
Capital International (MSCI) EAFE Index is an unmanaged, market-weighted index
composed of companies representative of the market structure of 20 developed
market countries in Europe, Australia, and the Far East. The MSCI AC World Free
Ex US Index is also an unmanaged Index representing both developed and emerging
markets of 49 countries, excluding the U.S. Unlike the fund, indices are not
investments, do not incur fees and are not professionally managed. Securities
in the fund may not match those in an index. It is not possible to invest
directly in an index.
For the six-month period ended June 30, 2003, Columbia International Stock Fund
class A shares returned 7.26% without sales charge. The fund trailed the MSCI
All Country World Free ex US Index, which returned 11.10% during the same
period. We chose this index as the fund's new benchmark because it includes
emerging markets, such as China, and other countries, such as Canada and Mexico,
in which the fund invests. By contrast, the fund's former benchmark, the MSCI
EAFE Index, only covers Europe, Australasia, and the major Far East markets. The
MSCI EAFE Index returned 9.47% for the six-month period.
Two factors were mainly responsible for the fund's underperformance relative to
these benchmarks. First, the fund had a relatively small position in lower
quality companies--particularly banks in Japan and insurance companies in
Europe--which rallied strongly toward the end of the six months. Second, at the
beginning of the period, the fund had investments in Asian markets, exclusive of
Japan, that were severely hurt by the SARS (severe acute respiratory syndrome)
epidemic. SARS had a dramatic impact on economic activity and the travel and
tourism industries in Asia.
A WEAK BEGINNING BUT A STRONG ENDING
At the beginning of the period, uncertainty about the war in Iraq, SARS and the
global economic slowdown took their toll on the international stock markets.
However, once the war officially ended and SARS appeared under control, investor
sentiment became more positive, and market participants began focusing on the
potential for better economic growth later in 2003. As a result, company
valuations rebounded from very low levels. At the end of the six months, many
international markets had risen significantly. While European markets generated
strong gains, Asian markets--especially Japan--were the global leaders.
AVERAGE ANNUAL TOTAL RETURN (%) As of June 30, 2003
A B D Z
- ----------------------------------------------------------------------------------------------------------
INCEPTION DATE 11/1/02 11/1/02 11/1/02 10/1/92
- ----------------------------------------------------------------------------------------------------------
WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE
- ----------------------------------------------------------------------------------------------------------
6-month (cumulative) 7.26 1.10 6.79 1.79 7.09 5.04 7.76
- ----------------------------------------------------------------------------------------------------------
1-year -9.56 -14.76 -10.23 -14.70 -9.98 -11.76 -9.14
- ----------------------------------------------------------------------------------------------------------
5-year -2.21 -3.36 -2.35 -2.66 -2.30 -2.50 -2.12
- ----------------------------------------------------------------------------------------------------------
10-year 5.24 4.63 5.16 5.16 5.19 5.09 5.29
- ----------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal
value and investment returns will fluctuate, resulting in a gain or loss on
sale. All results shown assume reinvestment of distributions, if any. The "with
sales charge" returns include the maximum 5.75% charge for class A shares, the
appropriate class B contingent deferred sales charge (CDSC) for the holding
period after purchase as follows: through first year-5%, second year-4%, third
year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter 0%, and the
class D sales charge of 1% which also carries a CDSC of 1% that is applied to
shares sold within the first year after they are purchased.
Performance for different share classes will vary based on differences in sales
charges and fees associated with each class. Performance results reflect any
waivers or reimbursement of fund expenses by the advisor or its affiliates.
Absent these waivers or reimbursement arrangements, performance results would
have been lower. Classes A, B and D (newer class shares) share performance
information includes returns of the fund's class Z shares (the oldest existing
fund class) for periods prior to the inception of the newer class shares. These
class Z share returns are not restated to reflect any differences in expenses
(e.g., Rule 12b-1 fees) between class Z shares and the newer class shares. If
difference in expenses had been reflected, the returns shown for periods prior
to the inception of classes A, B and D would have been lower.
8
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
INVESTORS GRAVITATED TOWARD OUT-OF-FAVOR COMPANIES
In managing the fund, we focused on high-quality companies in the
pharmaceutical, food, utility and retail sectors. These companies produced
relatively strong gains for several months. However, during the market upturn
that began in April many market participants sold some of the best performing
stocks and began investing in out-of-favor companies that were selling at
depressed prices. Consequently, some of the portfolio holdings that had
significantly contributed to performance in the past year and which continued to
have good prospects for growth held back the fund's results. For example,
Unilever, the world's largest household products company, fell 18% (0.9% of net
assets).1
Regionally, 56% of the fund's assets were in Europe, 18% in Japan and 15% in
emerging markets. In the emerging markets, we made the largest commitment to
Thailand (4.6% of net assets), which is benefiting from a strong economic
recovery, solid political leadership and increased consumer spending following a
sharp decline in interest rates.
GENERIC PHARMACEUTICALS WERE A PORTFOLIO THEME
Capitalizing on the global emphasis to reduce health care costs, we had a large
stake in generic pharmaceutical companies, including Ranbaxy Laboratories in
India; Teva Pharmaceutical in Israel; Sawai Pharmaceutical in Japan; and Stada
Arzneimittel in Germany (0.6%, 1.3%, 0.5% and 0.2% of net assets, respectively).
These companies made a positive contribution to the fund's performance during
the period.
LOOKING FORWARD TO A GLOBAL ECONOMIC RECOVERY
Recently the Paris-based Organization for Economic Cooperation and Development
(OECD) forecasted an upturn in industrial production over the next six months.
In one of its latest publications, the OECD stated that its leading economic
indicators for nearly all major countries stabilized in April, started to
improve in May and had a sharp improvement in June. We believe these indicators
are a precursor to more positive economic news in the coming months. We think
the fund is well positioned to take advantage of the better economic
environment.
JAMES M. MCALEAR
PORTFOLIO MANAGER
An investment in the fund may present certain risks, including stock market
fluctuations that occur in response to economic and business developments. The
fund may invest in foreign securities, which have special risks, including
political or economic instability and higher transaction costs; different
regulations, accounting standards, trading practices and levels of information;
and currency exchange rate fluctuations.
TOP TEN HOLDINGS
% of net assets
June 30, 2003 (unaudited)
Vodafone Group 2.9
Telefonica 1.8
Royal Bank of Scotland 1.7
Standard Chartered 1.6
ENI 1.5
Siam Cement 1.5
Taiwan Semiconductor Manufacturing 1.4
UniCredito Italiano 1.4
Credit Suisse Group 1.3
Pearson 1.3
Because the fund is actively managed, there is no guarantee the fund will
continue to maintain these holdings in the future.
TOP FIVE COUNTRIES
% of net assets
June 30, 2003 (unaudited)
United Kingdom 24.8
Japan 17.6
United States 7.2
France 7.2
Spain 5.9
Because the fund is actively managed, there is no guarantee the fund will
continue to maintain these country weightings in the future.
- ----------------------
1 Holdings are disclosed as of June 30, 2003 and are subject to change.
9
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
COLUMBIA SPECIAL FUND
PERFORMANCE OF A $10,000 INVESTMENT
6/30/93 - 6/30/03
WITHOUT SALES CHARGE WITH SALES CHARGE
-------------------- -----------------
Class A $ 23,254 $ 21,920
Class B 23,157 23,157
Class D 23,144 22,907
Class G 23,144 23,144
Class T 23,295 21,959
Class Z 23,337 n/a
----------------------------------
GROWTH OF $10,000 OVER 10 YEARS
(Mountain Chart)
Class A shares Class A Shares Russell Russell
without with MidCap MidCap
sales charge sales charge Index Growth Index
-------------- -------------- -------- ------------
6/30/93 9425.00 10000.00 10000.00 10000.00
9568.26 10048.00 10152.00 9968.00
10085.90 10495.10 10701.20 10547.10
10211.00 10535.00 10833.90 10673.70
10216.10 10543.40 10839.30 10845.60
9947.39 10298.80 10554.30 10592.90
10574.10 10671.70 11219.20 11017.60
11002.30 10966.20 11673.60 11300.80
11039.70 10817.10 11713.20 11203.60
10616.90 10356.20 11264.60 10675.90
10681.70 10427.70 11333.30 10650.30
10573.80 10442.30 11218.90 10666.30
10199.50 10133.20 10821.70 10207.60
10389.20 10480.80 11023.00 10490.40
10844.20 10977.60 11505.80 11115.60
10817.10 10709.70 11477.10 10932.20
11094.00 10791.10 11770.90 11121.30
10611.50 10315.20 11258.80 10630.90
10815.20 10449.30 11475.00 10779.70
10704.90 10663.50 11358.00 10909.00
11075.30 11215.90 11750.90 11489.40
11369.90 11536.70 12063.50 11945.50
11405.10 11710.90 12100.90 12045.90
11538.60 12096.20 12242.50 12342.20
12273.60 12502.60 13022.30 12903.80
13205.10 13110.20 14010.70 13715.40
13425.60 13310.80 14244.70 13866.30
13639.10 13611.60 14471.20 14175.50
13071.70 13306.70 13869.20 13816.90
13777.60 13968.10 14618.10 14434.50
14007.70 14049.10 14862.30 14441.70
13902.60 14345.50 14750.80 14697.30
14522.70 14682.70 15408.70 15252.90
14875.60 14895.60 15783.10 15373.40
16175.70 15317.10 17162.60 16115.90
16633.50 15548.40 17648.30 16444.70
15680.40 15315.20 16637.00 15948.00
14145.30 14367.10 15008.30 14710.50
15008.10 15051.00 15923.80 15506.30
15589.00 15794.50 16540.00 16491.00
15150.90 15920.90 16075.20 16298.00
15993.30 16890.50 16969.00 17258.00
15838.20 16718.20 16804.40 16968.00
16213.50 17343.50 17202.70 17718.00
15959.00 17317.40 16932.60 17328.20
15185.00 16581.50 16111.40 16349.20
15072.60 16994.30 15992.10 16749.70
16484.90 18234.90 17490.60 18250.50
17019.00 18831.20 18057.30 18756.10
17977.20 20401.70 19073.90 20551.00
17921.50 20179.30 19014.80 20349.60
18790.60 21331.60 19937.00 21379.30
17697.00 20501.80 18776.70 20308.20
17881.10 20989.70 18972.00 20521.40
17841.70 21569.00 18930.20 20790.30
17365.40 21163.50 18424.80 20416.00
18475.00 22818.50 19602.10 22335.10
19646.30 23900.10 20844.90 23271.00
19585.40 23959.90 20780.30 23587.50
19074.20 23219.50 20237.90 22618.00
19383.20 23542.30 20565.80 23258.10
18061.30 22419.30 19163.20 22262.70
15798.20 18832.20 16762.00 18012.70
16899.40 20050.70 17930.40 19374.50
17604.10 21418.10 18678.10 20800.50
18413.90 22431.20 19537.20 22204.50
20811.30 23745.70 22081.00 24504.90
20388.90 23705.30 21632.70 25240.00
18706.80 22915.90 19848.00 24005.80
19236.20 23633.20 20409.70 25342.90
19861.40 25379.70 21073.10 26498.50
19915.00 25306.10 21130.00 26156.70
21307.00 26199.40 22606.90 27982.40
20750.90 25478.90 22016.90 27092.60
20362.90 24819.00 21605.20 26810.80
20643.90 23945.40 21903.30 26582.90
21886.70 25080.40 23221.90 28637.80
24591.80 25802.70 26092.10 31604.70
28371.60 28073.30 30102.50 37078.60
28853.90 27144.10 30614.30 37071.20
37083.10 29231.50 39345.40 44863.60
36486.00 30906.40 38712.00 44908.40
32921.40 29444.60 34929.80 40547.80
31120.60 28664.30 33019.20 37591.90
34571.80 29512.70 36681.00 41580.40
33206.20 29182.20 35232.10 38948.30
37851.80 31977.90 40161.10 44821.70
37056.90 31520.60 39317.70 42630.00
34470.30 31035.20 36573.30 39714.10
29475.60 28242.00 31273.80 31084.20
32302.30 30391.20 34273.00 32722.30
31743.50 30880.50 33680.10 34590.80
28175.50 28999.90 29894.40 28606.60
25752.40 27201.90 27323.50 24513.00
28214.30 29527.70 29935.60 28599.30
27754.40 30076.90 29447.70 28464.90
27243.80 29794.10 28905.80 28479.10
26249.40 28942.00 27850.80 26559.60
24758.40 27827.80 26268.90 24634.00
21960.70 24471.70 23300.50 20562.00
22755.70 25440.80 24144.00 22723.10
24619.40 27572.80 26121.30 25170.40
25522.90 28681.20 27080.00 26126.90
24662.80 28509.10 26167.40 25277.70
23555.40 28206.90 24992.50 23844.50
24947.50 29899.30 26469.50 25663.80
24308.90 29319.30 25791.90 24306.20
23917.50 28988.00 25376.70 23581.90
22264.80 27045.80 23623.10 20978.40
20559.30 24406.10 21813.60 18939.30
20078.20 24540.30 21303.20 18873.10
19192.80 22275.30 20363.70 17374.50
19726.30 23400.20 20929.80 18721.10
20286.60 25024.10 21524.20 20186.90
19231.70 24038.20 20405.00 18967.60
19231.70 23552.60 20405.00 18781.70
18789.30 23241.70 19935.60 18618.30
18905.80 23471.80 20059.20 18964.60
19856.80 25175.90 21068.20 20256.10
21562.50 27479.50 22878.00 22204.80
6/30/03 21920.00 27757.00 23254.00 22521.00
MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT LIBERTYFUNDS.COM FOR
DAILY PERFORMANCE UPDATES.
Past performance is no guarantee of future investment results. The principal
value and investment returns will fluctuate, resulting in a gain or loss on
sale. The above illustration assumes a $10,000 investment made on June 30, 1993,
and reinvestment of income and capital gains distributions. The Russell MidCap
Index is an unmanaged index that measures the performance of the 800 smallest
companies in the Russell 1000 Index, which represent approximately 24% of the
total market capitalization of the Russell 1000 Index. The Russell MidCap Growth
Index is an unmanaged index that measures the performance of those Russell
Midcap companies with higher price-to-book ratios and higher forecasted growth
values. Unlike the fund, indices are not investments, do not incur fees, and are
not professionally managed. It is not possible to invest directly in an index.
Securities in this fund may not match those in an index.
For the six-month period ended June 30, 2003, Columbia Special Fund class A
shares returned 13.95% without sales charge. The fund trailed the Russell MidCap
Growth Index, which returned 18.74%, and the Russell MidCap Index, which
returned 15.47% during the same period. The fund also came out behind its peer
group, the Lipper MidCap Growth Funds Category average, which was 15.80%.1 In
the first quarter, our overweighting of the consumer discretionary sector had a
negative impact on performance. In the second quarter, the fund missed out on
the strong gains delivered by speculative technology issues that had been beaten
down in the bear market. The fund's investment in energy stocks also hurt
performance, as the sector trailed the market. All these factors caused the fund
to fall behind its benchmark and peer group.
EQUITY MARKETS STRENGTHEN
Early in 2003, the stock market made little headway as uncertainty dominated the
economy and geopolitical climate. In the second quarter, however, the equity
markets exhibited renewed vigor. This recovery was fueled by a relatively quick
end to the major military campaigns in Iraq, extremely strong monetary and
fiscal stimulus, and anticipation of a stronger economy and improved corporate
operating profits in the second half of 2003 and in 2004.
CONSUMER DISCRETIONARY STOCKS WEAKEN
In the first quarter, we were disappointed by the performance of retailers
Williams-Sonoma and Dollar Tree Stores, as well as Westwood One, a television
and radio programming service provider (1.9%, 0.5% and 0.5% of net assets,
respectively).2 These stocks were weighed down by concerns of a potential double
dip in the economy, but rebounded nicely in the second quarter as the economic
outlook improved. In the industrial sector, Concord EFS, a company that
specializes in the processing and settlement of credit and debit card
transactions, also delivered disappointing results. The company had to restate
earnings lower due to overly aggressive revenue recognition in past periods. We
had purchased the stock as a potential recovery plan, but sold it at a loss as
the company's problems were deeper than we anticipated.
HEALTH CARE AND TECHNOLOGY POSITIONS WERE GOOD PERFORMERS
Strong stock selection and an overweighting in health care contributed
positively to performance during the period. Among the portfolio's best
AVERAGE ANNUAL TOTAL RETURN (%) AS OF JUNE 30, 2003
CLASS A CLASS B CLASS D
- --------------------------------------------------------------------------------------------------
INCEPTION DATE 11/1/02 11/1/02 11/1/02
- --------------------------------------------------------------------------------------------------
WITHOUT WITH WITHOUT WITH WITHOUT WITH
SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
6-month
(cumulative) 13.95 7.40 13.55 8.55 13.48 11.36
- --------------------------------------------------------------------------------------------------
1-year -1.58 -7.22 -1.99 -6.89 -2.05 -3.98
- --------------------------------------------------------------------------------------------------
5-year 2.49 1.28 2.40 2.12 2.39 2.18
- --------------------------------------------------------------------------------------------------
10-year 8.81 8.16 8.76 8.76 8.75 8.64
- --------------------------------------------------------------------------------------------------
CLASS G CLASS T CLASS Z
- -------------------------------------------------------------------------------
INCEPTION DATE 11/1/02 11/1/02 11/20/85
- -------------------------------------------------------------------------------
WITHOUT WITH WITHOUT WITH WITHOUT
SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE
- -------------------------------------------------------------------------------
6-month
(cumulative) 13.41 8.41 14.00 7.46 14.20
- -------------------------------------------------------------------------------
1-year -2.05 -6.94 -1.40 -7.06 -1.23
- -------------------------------------------------------------------------------
5-year 2.39 1.97 2.52 1.32 2.56
- -------------------------------------------------------------------------------
10-year 8.75 8.75 8.82 8.18 8.84
- -------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal
value and investment returns will fluctuate, resulting in a gain or loss on
sale. All results shown assume reinvestment of distributions, if any. The "with
sales charge" returns include the maximum 5.75% charge for class A shares, the
appropriate class B contingent deferred sales charge (CDSC) for the holding
period after purchase as follows: through first year-5%, second year-4%, third
year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the
class D sales charge of 1% which also carries a CDSC of 1% that is applied to
shares sold within the first year after they are purchased. For class G shares,
the CDSC for the holding period after purchase is as follows: through first
year-5%, second year-4%, third year-4%, fourth year-4%, fifth year-3%, sixth
year-2%, seventh year-1%, thereafter-0%. For class T shares, the "with sales
charge" returns include the maximum 5.75% charge. Performance for different
share classes will vary based on differences in sales charges and fees
associated with each class.
Performance results reflect any waivers or reimbursement of fund expenses by the
advisor or its affiliates. Absent these waivers or reimbursement arrangements,
performance results would have been lower.
Classes A, B, D, G and T (newer class shares) share performance information
includes returns of the fund's class Z shares (the oldest existing fund class)
for periods prior to the inception of the newer class shares. These class Z
share returns are not restated to reflect any expense differential (e.g., Rule
12b-1 fees) between class Z shares and the newer class shares. Had the expense
differential been reflected, the returns for the periods prior to the inception
of classes A, B, D, G and T would have been lower.
10
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
performers were Caremark Rx, a pharmacy benefits manager, as well as Barr
Laboratories, a generic drug company, and Gilead Sciences, a biotechnology
company (4.2%, 2.3% and 0.8% of net assets, respectively). We believe that both
generic drug and biotech companies have the potential to generate attractive
earnings as more branded drugs come off patent and as legislators work to expand
Medicare prescription benefits. We sold HCA, a leading hospital operator, due to
slowing admissions and reimbursement reductions from Medicare.
Our emphasis on high-quality technology companies with established earnings, in
an environment that favored lower quality names, and our slight underweight in
the sector, detracted from the fund's relative performance in the second
quarter. However, the fund's intensive bottom-up, research process helped us
identify companies with reasonable valuations and above-average earnings growth.
Applications software providers, such as Amdocs and VERITAS Software (1.8% and
1.4% of net assets, respectively), were solid performers. We increased our
exposure to several existing technology holdings and added positions in
UTStarcom, a communications equipment company and Marvell Technology, a
semiconductor firm (1.2% and 1.0% of net assets, respectively). However, we
eliminated our position in Networks Associates, a software security company best
known for its McAfee anti-virus programs, when it unexpectedly reported
disappointing earnings due to increasing competition. While the business
prospects for the technology industry are improving, valuations have become
stretched, which means continued outperformance will require strongly
accelerating earnings growth. We remain biased towards companies with
established earnings that are less dependent on a strong snapback in demand.
Early in the period, the fund benefited from an overweight in the energy sector
including Apache, Valero Energy and BJ Services (1.5%, 1.1% and 1.8% of net
assets, respectively). During the second half of the period, however, these
companies trailed the broader market. This happened as investors moved into more
economically sensitive areas and anticipated lower natural gas prices during the
summer, when demand is seasonally lower and injections into underground storage
increase inventories. We remain committed to our overweight in the energy
sector, where our focus is on natural gas oriented companies. We believe the
longer term outlook favors consistently higher commodity prices and increased
drilling activity
POSITIVE OUTLOOK FOR EQUITIES
Our long-term outlook for stocks remains positive. We are optimistic that
current fiscal stimulus will help fuel continued economic improvement and lead
to a more lasting market recovery. Though many lower quality companies with
little or no earnings have bounced strongly off their bottoms in the recent
market rally, we remain focused on companies that demonstrate the ability to
generate above-average earnings and cash flow over the long term. The result is
a carefully constructed portfolio of growth stocks highly diversified across
market sectors.
RICHARD J. JOHNSON
PORTFOLIO MANAGER
An investment in the fund may present certain risks, including stock market
fluctuations that occur in response to economic and business developments.
Stocks of small- and mid-cap companies may trade less frequently, may trade in
smaller volumes and may fluctuate more sharply in price than stocks of larger
companies. The fund may invest in foreign securities, which have special risks,
including political or economic instability and higher transaction costs;
different regulations, accounting standards, trading practices and levels of
information; and currency exchange rate fluctuations.
TOP TEN HOLDINGS
% of net assets
June 30, 2003 (unaudited)
Caremark Rx 4.2
WellPoint Health Networks 2.9
Barr Laboratories 2.3
AmerisourceBergen 2.2
Electronic Arts 1.9
Williams-Sonoma 1.9
BJ Services 1.8
UnitedHealth Group 1.8
Amdocs 1.8
Microchip Technology 1.8
Because the fund is actively managed, there is no guarantee the fund will
continue to maintain these holdings in the future.
------------------------
TOP FIVE SECTORS
% of net assets
June 30, 2003 (unaudited)
Health care 27.2
Information technology 24.4
Consumer discretionary 17.3
Industrials 11.5
Energy 9.4
Because the fund is actively managed, there is no guarantee the fund will
continue to maintain these sectors in the future.
- ------------------------------
1 Lipper Inc., a widely respected data provider in the industry, calculates an
average total return for mutual funds with similar investment objectives as
those of the fund.
2 Holdings are disclosed as of June 30, 2003 and are subject to change.
11
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
COLUMBIA SMALL CAP FUND
PERFORMANCE OF A $10,000 INVESTMENT
10/1/96 - 6/30/03
without
sales charge
-------------
Class Z $19,423
------------------------
GROWTH OF $10,000
SINCE INCEPTION
(Mountain Chart)
CLASS Z RUSSEL 2000 RUSSEL 2000
SHARES INDEX GROWTH INDEX
------- ---------- ------------
10/1/96 10000 10000 10000
10174 9846 9569
10488 10252 9835
10762 10520 10027
11508 10731 10277
10820 10471 9657
10224 9977 8975
10191 10005 8871
11475 11117 10204
12245 11594 10550
13098 12133 11090
13753 12411 11423
15021 13320 12334
14449 12735 11593
14201 12652 11317
14432 12874 11324
13817 12670 11173
14953 13606 12160
16261 14167 12670
16435 14245 12747
15247 13477 11820
15715 13505 11941
14978 12411 10944
11771 10001 8418
12854 10784 9271
12984 11224 9755
13720 11812 10512
15109 12544 11464
15030 12710 11980
13452 11681 10884
13678 11863 11271
14077 12926 12266
14381 13115 12286
15682 13708 12933
16089 13332 12534
15726 12839 12065
16002 12841 12298
17555 12894 12613
19965 13664 13946
24048 15210 16404
24250 14966 16252
30795 17436 20034
29560 16287 17928
26350 15307 16117
24885 14414 14705
28386 15671 16605
26206 15167 15182
29285 16324 16779
28067 15844 15946
26663 15137 14651
23453 13583 11990
25451 14750 12724
25767 15518 13753
22982 14500 11868
20994 13791 10789
23433 14869 12110
23600 15235 12390
23984 15761 12729
22785 14908 11643
21092 14427 10915
17835 12485 9154
19105 13215 10034
20452 14238 10872
21839 15116 11549
21249 14959 11138
20197 14549 10418
21535 15719 11323
20856 15862 11078
20089 15158 10430
18741 14406 9546
16203 12231 8079
16459 12200 8074
15751 11324 7491
16027 11688 7871
16942 12730 8651
16038 12021 8054
15988 11688 7835
15742 11335 7625
16056 11481 7741
17346 12570 8473
18950 13919 9428
6/30/03 19423 14171 9610
MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT LIBERTYFUNDS.COM FOR
DAILY PERFORMANCE UPDATES.
Past performance is no guarantee of future investment results. The principal
value and investment returns will fluctuate, resulting in a gain or loss on
sale. The above illustration assumes a $10,000 investment made on October 1,
1996, and reinvestment of income and capital gains distributions. The Russell
2000 Index is an unmanaged market capitalization weighted index that tracks the
performance of 2000 small companies. The Russell 2000 Growth Index, also an
unmanaged index, measures the performance of those Russell 2000 companies with
higher price-to-book ratios and higher forecasted growth values. Unlike the
fund, indices are not investments, do not incur fees and are not professionally
managed. It is not possible to invest directly in an index. Securities in the
fund may not match those of the index. Index performance is from September 30,
1996.
For the six-month period ended June 30, 2003, Columbia Small Cap Fund class Z
shares returned 21.10% without sales charge. This return was higher than the
Russell 2000 Growth Index, which returned 19.33% during the same period, and the
Lipper Small-Cap Growth Funds Category average, which posted a return of
17.22%.1 The fund also performed better than the Russell 2000 Index, an index
less closely aligned with the fund's emphasis on growth stocks than the Russell
2000 Growth Index or its peer group. The Russell 2000 Index had a total return
of 17.88%. The fund's performance was driven largely by strong stock selection
in health care and information technology.
SMALL-CAP STOCKS POST STRONG GAINS
During the first half of the semiannual period, volatility continued to dominate
the markets, further eroding investor confidence. A swift end to the major
military campaign in Iraq, higher-than-expected corporate profits, improved
revenue growth, and significant fiscal and monetary stimulus, however, helped
fuel strong performance in the second quarter. As investor optimism increased,
small-cap growth stocks benefited.
Some of the fund's strongest gains came from the health care sector, where top
performers included Caremark Rx and Mid Atlantic Medical Services (2.1% and 1.6%
of net assets).2 In the technology sector, Amdocs and Macromedia (1.2% and 1.4%
of net assets) were also strong performers. However, the fund experienced
disappointing returns from other technology holdings including webMethods (0.6%
of net assets) and Acxiom, which we eliminated from the portfolio during the
period. The fund's relative underweighing in technology, particularly lower
quality companies with volatile or no earnings history, benefited performance in
the first quarter. This same position, however, hurt in the second quarter, as
lower quality technology stocks bounced hard in the post-war market rally. We
stayed with our bottom-up approach that emphasizes high quality stocks,
believing that over the long term these types of stocks will generate the most
attractive returns.
AVERAGE ANNUAL TOTAL RETURN (%)
As of June 30, 2003
CLASS Z
- ---------------------------------------
Public offering date 10/1/96
- ---------------------------------------
WITHOUT
SALES CHARGE
- ---------------------------------------
6-month (cumulative) 21.10
1-year 3.62
5-year 4.33
Life 10.34
Past performance is no guarantee of future investment results. The principal
value and investment returns will fluctuate, resulting in a gain or loss on
sale. All results shown assume reinvestment of distributions, if any.
Performance results reflect any voluntary waivers or reimbursements of fund
expenses by the advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower.
12
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
ENERGY AND CONSUMER DISCRETIONARY STOCKS MOVE OUT OF FAVOR
In the first half of the semiannual period, the fund also benefited from a
significant overweighting in energy, aided by strong performance from Premcor
(1.1% of net assets). This trend reversed during the last three months of the
period, as energy holdings, which typically do not fare as well in the summer,
delivered weaker-than-expected returns. Though strong stock selection in the
consumer discretionary sector benefited fund performance, several holdings
delivered unfavorable returns including Michaels Stores, Lamar Advertising and
Entravision Communications (0.9%, 0.9% and 0.7% of net assets, respectively).
MARKET POISED FOR FURTHER GAINS AS ECONOMY RECOVERS
The fund's positioning reflects our outlook for continued strengthening in the
equity markets. We plan to maintain an overweight in the health care sector,
where we expect earnings growth to remain positive. We also believe that select
technology stocks will be direct beneficiaries of an economic recovery. While
valuations remain generally high, extensive analysis helps us select companies
with reasonable prices and strong growth prospects. New technology additions
during the period included Ultratech, Pixelworks and Credence Systems
(0.8%, 0.2% and 0.8% of net assets, respectively). We believe that consumer
discretionary stocks will also fare well in an improving economy, but will
likely not do as well as more economically-sensitive stocks. As a result, we
have trimmed our exposure.
We are optimistic that the economy is primed for a recovery later this year.
Though lower quality companies generated the highest gains recently, we are
confident that our time-tested approach, which selects stocks with visible and
improving earnings, will perform well over the long term. The result is a highly
diversified portfolio of small-cap growth stocks with above-average growth
potential.
RICHARD J. JOHNSON
PORTFOLIO MANAGER
An investment in the fund may present certain risks, including stock market
fluctuations that occur in response to economic and business developments.
Stocks of small- and mid-cap companies may trade less frequently, may trade in
smaller volumes and may fluctuate more sharply in price than stocks of larger
companies. The fund may invest in foreign securities, which have special risks,
including political or economic instability and higher transaction costs;
different regulations, accounting standards, trading practices and levels of
information; and currency exchange rate fluctuations.
TOP FIVE SECTORS
% of net assets
June 30, 2003 (unaudited)
Information technology 28.7
Health care 21.9
Consumer discretionary 18.0
Industrials 13.0
Energy 10.6
Because the fund is actively managed, there is no guarantee the fund will
continue to maintain these sectors in the future.
---------------------------------
TOP TEN HOLDINGS
% of net assets
June 30, 2003 (unaudited)
Amphenol 2.8
Caremark Rx 2.1
Education Management 2.0
First Health Group 1.8
Harman International 1.6
Mid Atlantic Medical Services 1.6
DaVita 1.6
Entercom Communications 1.5
Henry Schein 1.5
Macromedia 1.4
Because the fund is actively managed, there is no guarantee the fund will
continue to maintain these holdings in the future.
- ---------------------
1 Lipper Inc., a widely respected data provider in the industry, calculates an
average total return for mutual funds with similar investment objectives as
those of the fund.
2 Holdings are disclosed as of June 30, 2003 and are subject to change.
13
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
COLUMBIA REAL ESTATE EQUITY FUND
PERFORMANCE OF A $10,000 INVESTMENT
4/1/94 - 6/30/03
WITHOUT SALES CHARGE WITH SALES CHARGE
-------------------- -----------------
Class A $ 27,421 $ 25,850
Class B 27,309 27,309
Class D 27,313 27,043
Class Z 27,537 n/a
----------------------------
GROWTH OF $10,000
SINCE INCEPTION
(Mountain Chart)
CLASS A SHARES CLASS A
WITHOUT WITH SHARES NAREIT
SALES CHARGE SALES CHARGE INDEX
- ---------------- ------------------ -------
4/1/94 10000 9425 10000
10017 9441 10170
10326 9732 10397
10135 9552 10185
9966 9393 10135
10118 9536 10165
9908 9339 9976
9610 9057 9630
9253 8721 9299
10177 9592 9977
9803 9240 9760
9899 9329 10001
9968 9395 9961
9818 9254 9958
10303 9711 10381
10562 9955 10546
10724 10107 10728
10795 10175 10856
11065 10429 11042
10820 10197 10806
10910 10283 10904
11894 11210 11500
12118 11422 11689
12221 11519 11826
12147 11448 11761
12137 11439 11821
12413 11699 12126
12707 11976 12284
12726 11994 12376
13342 12575 12863
13901 13101 13087
14173 13358 13476
14903 14046 14090
16449 15503 15554
16774 15810 15728
16877 15906 15697
17108 16124 15664
16523 15573 15233
17046 16066 15681
17819 16794 16443
18752 17674 16951
18565 17497 16911
20225 19062 18387
19533 18410 17891
20025 18874 18277
20518 19338 18708
20442 19266 18609
20060 18906 18293
20736 19543 18620
19836 18695 18013
19681 18549 17887
19626 18497 17766
18470 17408 16613
17114 16130 15044
18002 16967 15896
17698 16680 15602
18057 17019 15831
17983 16949 15432
17663 16648 15110
17538 16529 14755
17434 16432 14688
18876 17791 16082
19442 18325 16436
19003 17910 16170
18302 17250 15655
18291 17239 15457
17473 16469 14869
17119 16134 14503
16977 16000 14267
17540 16532 14719
17612 16599 14768
17179 16191 14592
18070 17031 15072
19155 18053 16085
19314 18203 16243
20032 18880 16660
21757 20506 18116
20895 19694 17381
21758 20507 17933
20723 19531 17157
21334 20107 17377
22601 21301 18600
22386 21099 18793
22071 20802 18493
21691 20444 18672
22457 21166 19118
22942 21623 19581
23938 22561 20728
23514 22162 20316
24259 22864 21059
22728 21422 20185
21958 20695 19608
23223 21887 20687
23822 22452 21191
23967 22589 21234
24442 23036 21643
25366 23907 22942
25551 24082 23137
26057 24558 23449
26429 24910 24090
25060 23619 22830
24805 23378 22784
23825 22455 21909
23117 21788 20855
24299 22901 21838
24527 23117 21999
23865 22493 21359
24139 22751 21711
24557 23145 22146
25581 24110 23120
26827 25284 24517
6/30/03 27421 25850 25051
MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT LIBERTYFUNDS.COM FOR
DAILY PERFORMANCE UPDATES.
Past performance is no guarantee of future investment results. The principal
value and investment returns will fluctuate, resulting in a gain or loss on
sale. The above illustration assumes a $10,000 investment made on April 1, 1994,
and reinvestment of income and capital gains distributions. The National
Association of Real Estate Investment Trusts (NAREIT) Index is an unmanaged
index that tracks performance of all publicly traded equity REITs. Unlike the
fund, indices are not investments, do not incur fees, and are not professionally
managed. It is not possible to invest directly in an index. Securities in the
fund may not match those in an index. Index performance is from March 31, 1994.
For the six-month period ended June 30, 2003, Columbia Real Estate Equity Fund
class A shares returned 11.78% without sales charge. The NAREIT Index, a common
measure of real estate securities performance, returned 13.87%. An overweight
allocation to forest products, which was made late in 2002 in anticipation of a
more rapid improvement in the economy, was the primary reason the fund fell
short of its benchmark. The fund also was significantly underexposed to health
care REITs, a sector that performed well. In addition, the fund's defensive cash
position detracted from performance.
UNDERLYING ECONOMIC CONDITIONS GENERALLY LESS HOSPITABLE TO GROWTH
Business conditions underlying the nation's real estate markets were generally
weak throughout the period. Job growth, which directly affects the health of the
U.S. office and apartment markets, remained sluggish. The average vacancy rate
in the major metropolitan office markets reached 17%, a level that is
significantly higher than the historical average. During 2002, most office REITs
reported year-over-year earnings declines, and few expect earnings to turn
positive before the end of 2004. As office leases are renewed, we are doubtful
that landlords will be able to extract meaningful rent increases.
Similarly, apartment vacancy rates have increased, as low mortgage rates and a
single-family construction boom are prompting renters to buy houses. As a result
of these factors, we have maintained an underweight position in both office and
apartment companies.
By contrast, the retail sector has benefited from a combination of brisk
consumer spending, attractive lease structures and unabated demand by retailers
for high-quality mall space. As a result, the fund's holdings of higher-quality
regional mall and shopping center companies have done well. Nevertheless, we
have some concerns about consumers who, saddled by high debt and static incomes,
may not be able to propel
AVERAGE ANNUAL TOTAL RETURN (%) As of June 30, 2003
Class A Class B Class D Class Z
- -----------------------------------------------------------------------------------------------------------
INCEPTION DATE 11/1/02 11/1/02 11/1/02 4/1/94
- -----------------------------------------------------------------------------------------------------------
WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE
- -----------------------------------------------------------------------------------------------------------
6-month (cumulative) 11.78 5.35 11.34 6.34 11.35 9.25 12.09
- -----------------------------------------------------------------------------------------------------------
1-year 3.73 -2.23 3.31 -1.69 3.33 1.30 4.17
- -----------------------------------------------------------------------------------------------------------
5-year 6.92 5.66 6.83 6.52 6.84 6.62 7.01
- -----------------------------------------------------------------------------------------------------------
Life 11.53 10.82 11.48 11.48 11.48 11.36 11.58
- -----------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal
value and investment returns will fluctuate, resulting in a gain or loss on
sale. All results assume reinvestment of distributions, if any. The "with sales
charge" returns include the maximum 5.75% charge for class A shares, the
appropriate class b contingent deferred sales charge (CDSC) for the holding
period after purchase as follows: through the first year-5%, second year-4%,
third year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and
the class D sales charge of 1% which also carries a CDSC of 1% that is applied
to shares sold within the first year after they are purchased. performance for
different share classes will vary based on differences in sales charges and fees
associated with each class.
Performance results reflect any voluntary waivers or reimbursement of fund
expenses by the advisor or its affiliates. absent these waivers or reimbursement
arrangements, performance results would have been lower.
Classes A, B, and D (newer class shares) share performance information includes
returns of the fund's class Z shares (the oldest existing fund class) for
periods prior inception of the newer class shares. these class Z share returns
are not restated to reflect any expense differential (e.g., Rule 12b-1 fees)
between class Z shares and newer class shares. had the expense differential been
reflected, the returns for the periods prior to the inception of classes A, B
and D would have been lower.
14
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
retail earnings growth indefinitely. As a result, we have taken profits from
some of the fund's retail holdings.
We continue to overweight the industrial sector, where we particularly like what
ProLogis Trust (4.5% of net assets)1 has been doing in Europe and Japan.
Although neither European nor Japanese economies are any more robust than the
US, the company is leading the modernization of logistics in both regions.
During the second quarter we took advantage of an attractive valuation
opportunity to add a new position in Duke Realty (2.3% of net assets). Duke's
management has significantly reduced the debt on its balance sheet, which will
help it achieve greater growth if the manufacturing economies in which the
company operates continue to improve.
RISKS RISE FOR REITS
The strong returns generated by REITs over the past year has largely been the
result of investors seeking higher yields than they can get from alternative
fixed income investments. The business conditions underlying the REIT markets
likely have bottomed or are close to bottoming. As we have noted in the past,
REIT returns tend to lag those of the broader stock market, which could make
real estate securities less attractive if equities strengthen. The other risk
facing REITs is that investors may become disappointed if the economic
fundamentals underlying company earnings do not improve quickly enough to
justify what is perceived to be a pricier market for their shares. Overall,
however, we are generally encouraged by the income stability and liquidity that
REITs offer, and we believe the fund is well positioned to benefit from eventual
economic recovery over the long term.
DAVID W. JELLISON
PORTFOLIO MANAGER
An investment in the fund may present certain risks, including stock market
fluctuations that occur in response to economic and business developments. The
fund may be subject to the same types of risks associated with direct ownership
of real estate including the decline of property value due to general, local and
regional economic conditions. In addition, the fund's share price will likely be
subject to more volatility than the overall stock market because it concentrates
in real estate stocks.
TOP TEN HOLDINGS
% of net assets
June 30, 2003 (unaudited)
Cousins Properties 5.4
iStar Financial 5.0
Simon Property Group 4.8
General Growth Properties 4.6
ProLogis Trust 4.5
Alexandria Real Estate Equities 3.6
Rouse 3.6
Regency Centers 3.5
Kimco Realty 3.4
Bowater 3.3
Because the fund is actively managed, there is no guarantee the fund will
continue to maintain these holdings in the future.
-------------------------------
TOP SECTORS
% of net assets
June 30, 2003 (unaudited)
Real Estate 80.4
Paper & Forest products 6.9
Hotel, Restaurants & Leisure 5.8
Others 6.9
Because the fund is actively managed, there is no guarantee the fund will
continue to maintain these sectors in the future.
- ---------------------
1 Holdings are disclosed as of June 30, 2003 and are subject to change.
15
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
COLUMBIA TECHNOLOGY FUND
PERFORMANCE OF A $10,000 INVESTMENT
11/9/00 - 6/30/03
without sales charge with sales charge
-------------------- -----------------
Class A $4,985 $4,699
Class B 4,945 4,797
Class D 4,975 4,926
Class Z 5,005 n/a
---------------------------------
GROWTH OF $10,000
SINCE INCEPTION
(Mountain Chart)
CLASS A SHARES CLASS A SHARES MERRILL LYNCH
WITHOUT WITH 100
SALES CHARGE SALES CHARGE TECHNOLOGY INDEX
-------------- -------------- -----------------
11/9/00 10000 9425 10000
8713 8212 7182
8622 8127 6786
9142 8617 7954
6815 6423 5654
6145 5792 4751
7365 6941 5805
7135 6725 5464
7285 6866 5483
6745 6357 4987
6095 5745 4376
4547 4285 3242
5166 4869 3856
5896 5557 4585
6126 5773 4577
6086 5736 4602
5367 5058 3978
6106 5755 4440
5376 5067 3899
5047 4757 3681
4607 4342 3080
3888 3664 2669
3858 3636 2575
3468 3269 2112
3818 3598 2572
4258 4013 3140
3788 3570 2676
3828 3608 2667
3808 3589 2690
3679 3467 2671
4138 3900 2984
4888 4607 3491
6/30/03 4985 4699 3474
MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT LIBERTYFUNDS.COM FOR
DAILY PERFORMANCE UPDATES.
Past performance is no guarantee of future investment results. The principal
value and investment returns will fluctuate, resulting in a gain or loss on
sale. The above illustration assumes a $10,000 investment made on November 9,
2000, and reinvestment of income and capital gains distributions. The Merrill
Lynch 100 Technology Index is an equally weighted, unmanaged index of 100
leading technology stocks. Unlike the fund, indices are not investments, do not
incur fees, and are not professionally managed. It is not possible to invest
directly in an index. Securities in the fund may not match those in an index.
Index performance is from October 31, 2000.
TECHNOLOGY STOCKS REBOUNDED
For the six-month period ended June 30, 2003, Columbia Technology Fund class A
shares returned 31.66% without sales charge. The fund performed better than its
benchmark, the Merrill Lynch 100 Technology Index, which posted a total return
of 29.85% for the same period. The fund's aggressive positioning and its
emphasis on semiconductors and the Internet accounted for its superior relative
returns.
Stocks in general--and technology stocks in particular--showed renewed signs of
life during the first half of 2003. Early in the year, the anticipation of war
in Iraq had a chilling effect on the stock market in an economy already slowed
by an overly cold winter and a relatively strong dollar. (A strong dollar can be
a problem for companies that sell their products into multinational markets.)
But the cold wore off, a military victory was declared, the dollar weakened and
stocks began to rise. Many of the stocks that had been beaten down most severely
began to bounce back as investors were attracted to their valuations and the
prospects of a strengthening economy ahead.
BROADBAND GROWTH FUELED TECH SECTOR
The accelerating growth of broadband Internet access was a key factor in the
technology rally. As faster service has become available to more customers,
Internet usage has stepped up. Many weaker Internet companies have gone out of
business, but those companies that have survived the downturn have prospered.
Many companies that were left for dead have seen their prospects improve.
Many different types of companies have benefited from the trend to broadband and
increased Internet usage. For example, our investment in E-Loan rose strongly
during the period. On-line customers discovered the convenience of this one-stop
shopping emporium for loan products, including mortgages and home equity credit
lines. We took profits and sold the stock.
AVERAGE ANNUAL TOTAL RETURN (%) As of June 30, 2003
CLASS A CLASS B CLASS D CLASS Z
- -----------------------------------------------------------------------------------------------------------
INCEPTION DATE 11/1/02 11/1/02 11/1/02 11/9/00
- -----------------------------------------------------------------------------------------------------------
WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE
- -----------------------------------------------------------------------------------------------------------
6-month (cumulative) 31.66 24.09 30.95 25.95 31.75 29.44 32.19
- -----------------------------------------------------------------------------------------------------------
1-year 8.24 2.04 7.38 2.38 8.03 5.88 8.68
- -----------------------------------------------------------------------------------------------------------
Life -23.19 -24.89 -23.42 -24.30 -23.25 -23.54 -23.07
- -----------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal
value and investment returns will fluctuate, resulting in a gain or loss on
sale. All results assume reinvestment of distributions, if any. The "with sales
charge" returns include the maximum 5.75% charge for class a shares, the
appropriate class B contingent deferred sales charge (CDSC) for the holding
period after purchase as follows: through the first year-5%, second year-4%,
third year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and
the class D sales charge of 1% which also carries a CDSC of 1% that is applied
to shares sold within the first year after they are purchased. Performance for
different share classes will vary based on differences in sales charges and fees
associated with each class.
Performance results reflect any voluntary waivers or reimbursement of fund
expenses by the advisor or its affiliates. absent these waivers or reimbursement
arrangements, performance results would have been lower.
Classes A, B, and D (newer class shares) share performance information includes
returns of the fund's class Z shares (the oldest existing fund class) for
periods prior inception of the newer class shares. These class Z share returns
are not restated to reflect any expense differential (e.g., Rule 12b-1 fees)
between class Z shares and newer class shares. Had the expense differential been
reflected, the returns for the periods prior to the inception of classes A, B
and D would have been lower.
16
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
We also invested in companies that supply and support the infrastructure for
high speed Internet transmission and networking systems, such as PMC-Sierra
(4.7% of net assets).1 The fund had a large position in the stock, which
appreciated strongly during the period. And we made Internet-related investments
in China, Japan and India, where Internet usage is just beginning to gain favor.
STRONG RETURNS FROM BIOTECH, RUSSIAN CELL PHONES
After two years of negative performance, biotechnology companies were strong
performers during the period. As a result, our stakes in Gilead Sciences and
Exact Sciences did well (0.7% and 0.7% of net assets, respectively). Gilead
develops drug therapies for infectious diseases and Exact Sciences specializes
in early cancer detection tests.
Outside the United States, our investment in the number one and number two
mobile phone service providers in Russia, Vimpel-Communications and Mobile
Telesystems (MTS) (1.6% and 2.0% of net assets, respectively), did well. Russian
cell phone usage is still in the early stages. With subscriber growth rates of
20% per quarter, compared to 0%-5% in the United States, we believe that MTS and
Vimpel-Communications continue to have attractive growth potential.
OPTIMISTIC ABOUT THE PERIOD AHEAD
Looking ahead, we are bullish on the prospects for the technology sector because
we believe the economy's underlying strength has yet to surface. However, we
have not tied the fund's prospects to an improving economy or increased
corporate spending on information technology. Instead, we have concentrated on
product cycle themes, such as broadband and the Internet, where we believe the
accelerating usage will continue to provide opportunities going forward. We have
focused on identifying companies with attractive business prospects. In
addition, we are seeking to increase our exposure to the fast-growing technology
markets of Russia and China, a reflection of our optimism that growth is likely
to occur outside the United States as well.
THE TECHNOLOGY FUND IS TEAM MANAGED, OPERATED BY WAYNE COLLETTE AND TED WENDELL
An investment in the fund may present certain risks, including stock market
fluctuations that occur in response to economic and business developments. In
addition, the fund's share price will likely be subject to more volatility than
the overall stock market because it focuses on technology stocks.
TOP TEN HOLDINGS
% of net assets
June 30, 2003 (unaudited)
PMC-Sierra 4.7
Intersil 4.4
Cabot Microelectronics 3.9
Marvell Technology Group 2.7
Inter-Tel 2.6
Siliconware Precision Industries 2.5
Sohu.com 2.3
4 Kids Entertainment 2.2
Electronics for Imaging 2.1
Dot Hill Systems 2.1
Because the fund is actively managed, there is no guarantee the fund will
continue to maintain these holdings in the future.
--------------------------------------
TOP FIVE SECTORS
% of net assets
June 30, 2003 (unaudited)
Semiconductors equipment & products 29.1
Software 13.0
Communications equipment 11.5
Internet software & services 9.5
Media 8.1
Because the fund is actively managed, there is no guarantee the fund will
continue to maintain these sectors in the future.
- ----------------------
1 Holdings are disclosed as of June 30, 2003 and are subject to change.
17
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
COLUMBIA STRATEGIC VALUE FUND
PERFORMANCE OF A $10,000 INVESTMENT
11/9/00 - 6/30/03
WITHOUT SALES CHARGE WITH SALES CHARGE
-------------------- -----------------
Class A $ 15,122 $ 14,254
Class B 15,021 14,721
Class D 15,011 14,862
Class Z 15,142 n/a
--------------------------------------
GROWTH OF $10,000
SINCE INCEPTION
(Mountain Chart)
CLASS A SHARES CLASS A SHARES RUSSELl
WITHOUT WITH 3000 S&P 500
SALES CHARGE SALES CHARGE VALUE INDEX INDEX
- ---------------- --------------- ----------- -------
11/9/00 10000 9425 10000 10000
9790 9227 9639 9212
11224 10579 10157 9257
12274 11568 10211 9586
12254 11549 9946 8713
11984 11295 9608 8161
12934 12190 10077 8794
13743 12953 10305 8853
13963 13160 10122 8638
13884 13085 10087 8553
13664 12879 9707 8019
12325 11616 8997 7372
12736 12003 8940 7513
13896 13097 9468 8089
14568 13731 9716 8160
14599 13759 9656 8041
14719 13872 9675 7886
15591 14695 10152 8182
15521 14629 9858 7686
15541 14648 9877 7630
14900 14043 9338 7087
13636 12852 8431 6535
13676 12889 8487 6577
12311 11603 7567 5863
12894 12153 8096 6378
14141 13328 8614 6753
13310 12544 8241 6357
12945 12201 8039 6191
12681 11952 7821 6098
12620 11894 7839 6157
13827 13032 8533 6664
14982 14121 9106 7015
6/30/03 15122 14254 9222 7104
MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT LIBERTYFUNDS.COM FOR
DAILY PERFORMANCE UPDATES.
Past performance is no guarantee of future investment results. The principal
value and investment returns will fluctuate, resulting in a gain or loss on
sale. The above illustration assumes a $10,000 investment made on November 9,
2000, and reinvestment of income and capital gains distributions. The Russell
3000 Value Index measures the performance of those Russell 3000 Index companies
with lower price-to-book ratios and lower forecasted growth values. The stocks
in this index are also members of either the Russell 1000 Value or the Russell
2000 Value indices. The S&P 500 Index is an unmanaged index generally considered
representative of the US stock market. Unlike the fund, indices are not
investments, do not incur fees and are not professionally managed. It is not
possible to invest directly in an index. Securities in the fund may not match
those in an index. Index performance is from October 31, 2000.
For the six-month period ended June 30, 2003, Columbia Strategic Value Fund
class A shares returned 13.63% without sales charge. The Russell 3000 Value
Index returned 11.91% and the S&P 500 Index posted a return of 11.75%. The
fund's peer group, the Lipper Multi-Cap Value Fund Category Average, had a total
return of 12.31% during the same period.1 The fund benefited from strong stock
selection in industries poised to benefit from an improved economy.
SIGNS OF RECOVERY EMERGE
During the first half of the six-month period, investors grappled with continued
uncertainty abroad and lackluster economic prospects at home. A difficult winter
segued into a strong second quarter as the equity markets experienced a welcome
rebound. Investors reacted favorably to a relatively swift end to the major
military campaign in Iraq and to improved corporate business prospects.
CONSUMER DISCRETIONARY, TECHNOLOGY AND EMERGING MARKETS LED PERFORMANCE
During the period, the fund emphasized consumer discretionary stocks such as
CarMax and Target (0.6% and 0.5% of net assets, respectively), both made a
significant contribution to performance.2 In information technology, SanDisk
(0.8% of net assets), a leading supplier of flash data storage products,
generated attractive returns. The fund also benefited from exposure to cellular
communications companies in emerging markets--a sector that we believe offers
compelling long-term growth prospects. Notable contributors included
Vimpel-Communications, PT Telekomunikasi and Millicom International Cellular
(1.2%, 0.6% and 0.4% of net assets, respectively).
Exposure to the technology sector, which was the period's strongest performer,
helped the fund. Investments in SAP and Teradyne registered strong gains (0.4%
and 0.6% of net assets, respectively).
Average Annual Total Return (%) As of June 30, 2003
CLASS A CLASS B CLASS D CLASS Z
- ------------------------------------------------------------------------------------------------------------
INCEPTION DATE 11/1/02 11/1/02 11/1/02 11/9/00
- ------------------------------------------------------------------------------------------------------------
WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE
- ------------------------------------------------------------------------------------------------------------
6-month (cumulative) 13.63 7.10 13.13 8.13 12.97 10.85 13.70
- ------------------------------------------------------------------------------------------------------------
1-year 1.51 -4.35 0.83 -4.16 0.77 -1.23 1.65
- ------------------------------------------------------------------------------------------------------------
Life 16.97 14.38 16.67 15.78 16.65 16.20 17.03
- ------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal
value and investment returns will fluctuate, resulting in a gain or loss on
sale. All results shown assume reinvestment of distributions, if any. The "with
sales charge" returns include the maximum 5.75% charge for class A shares, the
appropriate class B contingent deferred sales charge (CDSC) for the holding
period after purchase as follows: through first year-5%, second year-4%, third
year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the
class D sales charge of 1% which also carries a CDSC of 1% that is applied to
shares sold within the first year after they are purchased. Performance for
different share classes will vary based on differences in sales charges and fees
associated with each class.
Performance results reflect any voluntary waivers or reimbursement of fund
expenses by the advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower.
Classes A, B and D (newer class shares) share performance information includes
returns of the fund's class Z shares (the oldest existing fund class) for
periods prior to the inception of the newer class shares. These class Z share
returns are not restated to reflect any differences in expenses (e.g., Rule
12b-1 fees) between class Z shares and the newer class shares. Had the expense
differential been reflected, the returns shown for periods prior to the
inception of classes A, B and D would have been lower.
18
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
In the industrial sector, Chicago Bridge & Iron (0.3% of net assets) did well.
A weak US dollar helped fuel strong returns from companies overseas. A standout
performer in the foreign sector was Nokian Renkaat (1.2% of net assets), a
Finnish manufacturer specializing in winter tires. We are encouraged by Nokian's
current expansion into the Russian market, a move that we believe will generate
attractive earnings.
DISAPPOINTMENTS IN RAW MATERIALS AND REGIONAL BELLS
While the fund experienced strong performance from many sectors, it experienced
disappointing returns from materials and telecommunications. In the raw
materials sector, IMC Global, one of the world's leading fertilizer suppliers,
was hurt by rising natural gas prices, which drove its costs higher. As a
result, we eliminated our position in IMC Global during the period. Regional
Bell operating companies were set back by an unfavorable Federal Communications
Commission (FCC) ruling, and their shares lost value. We also eliminated our
position in Regional Bell during the period.
POSITIONED FOR RECOVERY
We are optimistic concerning the prospects for the economy going forward.
Significant fiscal and monetary stimulus, including tax reform, and a weak US
dollar should provide the ammunition necessary for economic recovery, which we
anticipate later this year.
A strengthening economy, however, will likely trigger a rise in interest rates.
As a result, we have trimmed our exposure to financial sectors, specifically
among property and casualty insurers and banks, such as J.P. Morgan Chase and
Wachovia (0.6% and 1.1% of net assets, respectively). We also anticipate that
small business spending will increase as economic recovery takes hold.
Therefore, we have focused on companies in the capital goods, basic materials
and technology industries that should be the direct beneficiaries of this trend.
We believe that companies such as Polycom (0.6% of net assets), a video
conferencing service provider, may benefit from the continued emphasis on
corporate cost cutting.
ROBERT A. UNGER
PORTFOLIO MANAGER
An investment in the fund may present certain risks, including stock market
fluctuations that occur in response to economic and business developments; and a
greater degree of social, political and economic volatility associated with
international investing. Stocks of small- and mid-cap companies may trade less
frequently, may trade smaller volumes and may fluctuate more sharply in price
than stocks of larger companies.
TOP TEN HOLDINGS
% of net assets
June 30, 2003 (unaudited)
3M 1.7
Vimpel-Communications 1.2
Nokian Renkaat 1.2
Wachovia 1.1
Caterpillar 1.0
American International Group 1.0
Citigroup 0.9
AOL Time Warner 0.9
Eaton 0.9
Cendant 0.9
Because the fund is actively managed, there is no guarantee the fund will
continue to maintain these holdings in the future.
-----------------------------------
Top Five Sectors
% of net assets
June 30, 2003 (unaudited)
Consumer discretionary 13.9
Industrials 12.1
Financials 11.8
Information technology 10.2
Energy 9.2
Because the fund is actively managed, there is no guarantee the fund will
continue to maintain these sectors in the future.
- ---------------------
1 Lipper Inc., a widely respected data provider in the industry, calculates an
average total return for mutual funds with similar investment objectives as
those of the fund.
2 Holdings are disclosed as of June 30, 2003 and are subject to change.
19
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
COLUMBIA BALANCED FUND
PERFORMANCE OF A $10,000 INVESTMENT
6/30/93 - 6/30/03
WITHOUT SALES CHARGE WITH SALES CHARGE
-------------------- -----------------
Class A $20,619 $19,437
Class B 20,517 20,517
Class D 20,529 20,325
Class Z 20,688 n/a
----------------------------------------
Growth of $10,000 Over 10 Years
(Mountain Chart)
LEHMAN BROTHERS
CLASS A WITHOUT CLASS A WITH SALES S&P 500 AGGREGATE BOND
SALES CHARGE CHARGE INDEX INDEX
- --------------- ------------------ ---------- -----------------
6/30/93 10000 9425 10000 10000
10011 9435 10057 9960
10351 9756 10233 10337
10401 9803 10261 10258
10474 9872 10299 10470
10334 9739 10211 10371
10479 9877 10266 10496
10725 10109 10405 10853
10532 9927 10224 10558
10216 9629 9971 10098
10263 9673 9891 10227
10375 9779 9890 10395
10180 9595 9869 10140
10490 9887 10065 10472
10680 10066 10077 10902
10471 9869 9929 10635
10489 9886 9920 10874
10339 9745 9898 10478
10489 9886 9967 10633
10635 10023 10164 10909
10987 10355 10406 11334
11145 10504 10469 11668
11286 10637 10616 12012
11677 11006 11027 12492
11830 11150 11107 12782
12058 11365 11083 13206
12189 11488 11217 13239
12467 11750 11326 13798
12448 11732 11473 13748
12816 12079 11645 14352
13119 12364 11808 14629
13283 12519 11886 15126
13276 12513 11679 15267
13381 12612 11597 15413
13433 12661 11532 15640
13565 12785 11509 16043
13691 12904 11664 16104
13412 12641 11695 15393
13625 12842 11675 15717
14038 13231 11878 16602
14205 13388 12142 17061
14821 13969 12350 18350
14666 13822 12235 17987
15026 14162 12273 19111
15070 14204 12303 19260
14844 13990 12167 18469
15260 14382 12349 19571
15769 14863 12467 20763
16242 15308 12615 21693
17168 16181 12956 23420
16646 15689 12846 22109
17117 16133 13034 23320
16924 15951 13223 22541
17257 16265 13284 23585
17413 16411 13418 23990
17656 16641 13590 24257
18274 17224 13579 26006
18795 17715 13625 27337
18902 17815 13696 27613
18821 17739 13826 27138
19452 18333 13944 28240
19370 18256 13973 27941
17915 16885 14201 23901
18526 17461 14533 25433
19126 18027 14456 27500
19834 18694 14539 29167
20909 19707 14582 30847
21505 20268 14686 32136
21028 19818 14429 31137
21713 20465 14508 32382
21921 20661 14555 33635
21494 20258 14426 32842
22229 20951 14380 34664
21789 20536 14318 33583
21532 20294 14311 33418
21431 20198 14477 32503
22095 20825 14531 34560
22566 21268 14529 35262
23561 22206 14460 37338
23017 21693 14412 35464
23684 22322 14586 34794
25190 23742 14779 38197
24664 23246 14736 37047
24050 22667 14729 36287
24846 23417 15035 37184
24769 23345 15172 36604
25831 24346 15392 38877
24741 23319 15489 36824
24375 22974 15591 36669
23344 22002 15847 33780
23757 22391 16141 33945
24192 22801 16406 35150
22670 21367 16549 31945
21895 20636 16632 29919
22843 21530 16562 32244
22948 21629 16661 32460
22625 21324 16724 31671
22561 21264 17099 31361
21742 20492 17296 29398
20651 19463 17498 27022
21051 19841 17864 27539
21877 20619 17617 29651
21999 20734 17505 29912
21691 20444 17646 29475
21500 20264 17818 28906
21810 20556 17522 29993
21081 19869 17862 28175
21157 19941 18013 27967
20269 19103 18168 25976
19233 18127 18388 23952
19493 18372 18699 24108
18403 17345 19002 21487
19110 18011 18915 23378
19849 18708 18909 24755
19146 18046 19300 23302
18896 17809 19318 22692
18786 17706 19584 22351
18863 17778 19569 22568
19829 18689 19731 24428
20509 19330 20098 25715
6/30/03 20619 19437 20064 26018
MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT LIBERTYFUNDS.COM FOR
DAILY PERFORMANCE UPDATES.
Past performance is no guarantee of future investment results. The principal
value and investment returns will fluctuate, resulting in a gain or loss on
sale. The above illustration assumes a $10,000 investment made on June 30, 1993,
and reinvestment of income and capital gains distributions. The Lehman Brothers
Aggregate Bond Index is an unmanaged index that represents average
market-weighted performance of U.S. Treasury and agency securities,
investment-grade corporate bonds, and mortgage-backed securities with maturities
greater than one year. The S&P 500 Index tracks the performance of 500
large-capitalization US stocks. Unlike the fund, indices are not investments, do
not incur fees, and are not professionally managed. It is not possible to invest
directly in an index. Securities in this fund may not match those in an index.
For the six-month period ended June 30, 2003, Columbia Balanced Fund class A
shares returned 7.71% without sales charge. Over the same time, the Lehman
Brothers Aggregate Bond Index returned 3.93% and the S&P 500 Index returned
11.75%. The fund underperformed the Lipper Balanced Funds Category average,
which returned 8.65%.1 We believe, our lower concentration in low quality bonds,
and a lighter exposure to technology and utility stocks, both of which
outperformed during the period, hurt relative performance.
PRESSURE ON YIELDS PUSHED FIXED-INCOME INVESTORS TOWARD HIGHER YIELDING
SECURITIES
Although there was widespread belief that interest rates were poised to move
higher when the year began, the Federal Reserve Board indicated that it might
lower a key short-term interest rate when the economy failed to show marked
improvement in the first quarter of 2003. In June, the Fed put an end to such
speculation when it lowered the federal funds rate-- the overnight rate banks
charge each other for borrowing--to 1.0%.
Investors responded to the lowest yields in 45 years by shifting to lower
quality, higher-yielding fixed-income securities. The fixed income securities in
the portfolio performed better than the Lehman Brothers Aggregate Bond Index,
which is our benchmark for fixed income. However, the fund's ability to invest
in many of the lower quality bonds that did well in this environment is limited.
High yield bonds are limited to 10% of the fund's bond holdings and we do not
invest in emerging market bonds or foreign currency denomimated bonds, both of
which did well during the period. We reduced the fund's exposure to mortgage
pass through securities, which have been hurt by yet another wave of mortgage
refinancing activity and remain underweighted in the sector. The fund is
overweighted in asset-backed sectors, as well as high-quality corporate bonds,
because we believe that our quality bias will benefit the fund in the future.
AVERAGE ANNUAL TOTAL RETURN (%) As of June 30, 2003
CLASS A CLASS B CLASS D CLASS Z
- ------------------------------------------------------------------------------------------------------------
INCEPTION DATE 11/1/02 11/1/02 11/1/02 10/1/91
- ------------------------------------------------------------------------------------------------------------
WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE
- ------------------------------------------------------------------------------------------------------------
6-month (cumulative) 7.71 1.51 7.31 2.31 7.43 5.37 8.04
- ------------------------------------------------------------------------------------------------------------
1-year 1.74 -4.13 1.23 -3.75 1.29 -0.71 2.07
- ------------------------------------------------------------------------------------------------------------
5-year 1.17 -0.02 1.07 0.76 1.08 0.88 1.24
- ------------------------------------------------------------------------------------------------------------
10-year 7.51 6.87 7.45 7.45 7.46 7.35 7.54
- ------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal
value and investment returns will fluctuate, resulting in a gain or loss on
sale. All results shown assume reinvestment of distributions, if any. The "with
sales charge" returns include the maximum 5.75% charge for class A shares, the
appropriate class B contingent deferred sales charge (CDSC) for the holding
period after purchase as follows: through first year-5%, second year-4%, third
year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the
class D sales charge of 1% which also carries a CDSC of 1% that is applied to
shares sold within the first year after they are purchased. Performance for
different share classes will vary based on differences in sales charges and fees
associated with each class.
Performance results reflect any voluntary waivers or reimbursement of fund
expenses by the advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower.
Classes A, B, and D (newer class shares) share performance information includes
returns of the fund's class Z shares (the oldest existing fund class) for
periods prior to the inception of the newer class shares. These class Z share
returns are not restated to reflect any expense differential (e.g., Rule 12b-1
fees) between class Z shares and the newer class shares. Had the expense
differential been reflected, the returns for the periods prior to the inception
of classes A, B and D would have been lower.
20
Investment Reviews
- --------------------------------------------------------------------------------
AN ERRATIC PERIOD FOR STOCKS, FOLLOWED BY A STRONG RALLY IN THE SECOND QUARTER
During the first three months of the period, a weak stock market reflected
investor fears about an impending war in Iraq, rising unemployment and generally
weak economic growth. By the second quarter, investor psychology had shifted as
the United States declared a military victory in Iraq. Against this background,
we raised the fund's allocation to stocks and lowered its allocation to bonds in
order to take advantage of what we perceived to be greater opportunity in the
stock market. We increased our stake in out-of-favor consumer cyclical stocks,
particularly in the leisure and home improvement areas. Our purchases included
Carnival, Royal Caribbean Cruises, Target and Home Depot (0.3%, 0.7%, 1.0% and
1.0% of net assets, respectively).2 Generally speaking, these positions did well
for the fund as investor sentiment improved in the second quarter.
We increased our investments in information technology stocks. However, we
believe that our exposure to technology and utility stocks, which led the market
during the six-month period, was less than funds in our peer group. That
underweight, combined with some disappointing investments in the energy,
industrials and telecommunications sectors hindered performance.
A MIXED OUTLOOK FOR THE NEXT SIX MONTHS
We expect the economy to grow during the next six months as lower tax rates
combined with already-higher stock prices have the potential to make consumers
more optimistic. However, the high unemployment rate could weigh on consumer
confidence, and the rapid run-up in prices on speculative stocks could cause the
market to give back some of its recent gains. In this environment, we expect to
maintain our diversified bond holdings, with an emphasis on quality and a bias
toward those companies that can benefit from an improving economy. Within the
fund's stock holdings, we are currently overweight compared to the S&P 500 Index
in financials, consumer cyclicals, energy service, technology, health care and
media stocks and underweight in transportation, basic materials and consumer
staples. We are generally more optimistic on capital spending going forward, and
we will look for opportunities to incorporate that outlook into our stock
selection. We will also look to add stocks of companies that appear able to take
advantage of the recent reduction in dividend tax rates by redeploying capital
back to shareholders in the form of higher dividends.
LEONARD APLET, SCOTT DRYSDALE, RON GIBBS, GUY POPE AND TRENT NEVILLS ON BEHALF
OF THE COLUMBIA BALANCED FUND TEAM
An investment in the fund may present certain risks, including stock market
fluctuations that occur in response to economic and business developments. The
fund is also subject to risks associated with investments in bonds, including
interest rate risk, credit risk and prepayment risk.
TOP TEN EQUITY HOLDINGS
% of net assets
June 30, 2003 (unaudited)
Citigroup 2.6
Pfizer 2.6
Microsoft 2.2
General Electric 1.6
Bank of America 1.4
American Express 1.3
McDonald's 1.1
Altria 1.1
J.P. Morgan Chase 1.1
Johnson & Johnson 1.1
Because the fund is actively managed, there can be no guarantee the fund will
continue to maintain these holdings in the future.
----------------------------------
PORTFOLIO COMPOSITION
% of net assets
June 30, 2003 (unuadited)
Common stocks 61.5
Government issues 14.6
Corporate notes & bonds 13.6
Cash, net receivables & payables 3.7
Asset-backed securities 3.6
Collateralized mortgage obligations 1.7
Commercial mortgage-backed securities 1.0
Preferred stock 0.3
Because the fund is actively managed, there can be no guarantee the fund will
continue to maintain this composition in the future.
- ----------------------
1 Lipper, Inc., a widely respected data provider in the industry, calculates
an average total return for mutual funds with similar investment objectives as
the fund.
2 Holdings are disclosed as of June 30, 2003 and are subject to change.
21
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
COLUMBIA SHORT TERM BOND FUND
PERFORMANCE OF A $10,000 INVESTMENT
6/30/93 - 6/30/03
WITHOUT SALES CHARGE WITH SALES CHARGE
-------------------- -----------------
Class A $16,689 $15,905
Class B 16,605 16,605
Class D 16,668 16,494
Class G 16,634 16,634
Class T 16,708 15,923
Class Z 16,731 n/a
---------------------------------------
Growth of $10,000 Over 10 Years
(Mountain Chart)
CLASS A SHARES CLASS A SHARES MERRILL LYNCH MERRILL LYNCH
WITHOUT WITH 1-5 YEAR 1-3
SALES CHARGE SALES CHARGE GOV'T/CORP INDEX YEAR TREASURY INDEX
- ------------------ --------------- ---------------- -------------------
6/30/93 10000 9525 10000 10000
10008 9533 10022 10023
10122 9641 10143 10110
10140 9659 10180 10143
10159 9676 10202 10163
10140 9659 10184 10166
10183 9699 10226 10204
10239 9753 10311 10269
10157 9675 10209 10203
10103 9623 10116 10152
10074 9595 10057 10117
10084 9605 10071 10131
10107 9627 10092 10161
10183 9699 10199 10248
10211 9726 10236 10284
10180 9696 10182 10261
10199 9715 10197 10283
10169 9685 10143 10237
10180 9696 10169 10261
10306 9816 10324 10403
10415 9920 10500 10546
10468 9971 10563 10605
10558 10057 10672 10699
10727 10218 10922 10886
10776 10264 10987 10945
10809 10295 11016 10990
10869 10353 11092 11056
10916 10398 11155 11110
11018 10494 11264 11203
11131 10602 11385 11302
11218 10685 11486 11389
11318 10780 11588 11486
11237 10704 11508 11438
11187 10656 11475 11427
11176 10645 11464 11436
11181 10650 11472 11461
11269 10733 11570 11543
11305 10768 11612 11588
11326 10788 11640 11627
11445 10901 11768 11733
11581 11031 11930 11866
11673 11118 12046 11957
11652 11098 12015 11957
11701 11145 12069 12013
11717 11160 12089 12041
11683 11128 12060 12036
11790 11230 12176 12135
11857 11293 12265 12217
11935 11368 12361 12302
12073 11500 12542 12437
12065 11492 12525 12448
12143 11566 12641 12543
12238 11657 12755 12636
12243 11661 12779 12666
12324 11738 12874 12752
12448 11857 13024 12876
12433 11843 13022 12887
12468 11876 13073 12940
12532 11936 13135 13001
12597 11998 13215 13070
12646 12045 13292 13138
12696 12093 13351 13200
12868 12257 13544 13366
13053 12433 13787 13542
13117 12494 13832 13609
13070 12449 13813 13597
13117 12494 13864 13644
13161 12536 13933 13699
13059 12439 13808 13632
13149 12524 13921 13726
13175 12549 13967 13770
13140 12516 13912 13761
13182 12556 13953 13804
13209 12582 13968 13848
13221 12593 13996 13888
13298 12666 14109 13979
13313 12680 14142 14016
13326 12693 14165 14043
13351 12717 14167 14063
13339 12706 14136 14057
13422 12784 14237 14151
13476 12836 14348 14239
13512 12870 14358 14276
13567 12923 14399 14334
13673 13024 14589 14484
13731 13078 14693 14575
13823 13166 14830 14683
13881 13221 14963 14788
13940 13278 15030 14868
14095 13426 15203 15009
14322 13642 15424 15188
14498 13810 15647 15378
14617 13923 15769 15478
14724 14024 15913 15606
14740 14040 15922 15648
14825 14121 16016 15736
14877 14171 16076 15790
15105 14388 16333 15966
15227 14504 16452 16059
15433 14700 16747 16324
15621 14879 16944 16479
15520 14782 16842 16443
15481 14746 16807 16449
15538 14800 16856 16482
15608 14867 16960 16561
15519 14782 16791 16449
15707 14961 17022 16633
15803 15052 17154 16700
15896 15141 17303 16840
15990 15230 17524 17045
16103 15338 17673 17103
16271 15498 17898 17245
16183 15414 17896 17285
16186 15417 17867 17233
16333 15558 18139 17395
16353 15576 18148 17393
16482 15699 18308 17466
16497 15713 18344 17498
16561 15775 18427 17531
16686 15893 18624 17598
6/30/03 16689 15905 18648 17624
MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT LIBERTYFUNDS.COM FOR
DAILY PERFORMANCE UPDATES.
Past performance is no guarantee of future investment results. The principal
value and investment returns will fluctuate, resulting in a gain or loss on
sale. The above illustration assumes a $10,000 investment made on June 30, 1993,
and reinvestment of income and capital gains distributions. The Merrill Lynch
1-5 Year Government/Corporate Index is an unmanaged index that includes all US
government debt with at least $100 million face value outstanding, as well as
investment-grade rated corporate debt with at least $100 million face value
outstanding and a maturity of 1-5 years. The Merrill Lynch 1-3 Year Treasury
Index is an unmanaged index that measures the return of Treasury bills with
maturities of 1-3 years and is intended to provide a benchmark for the prior
investment objective and strategy of the fund. Unlike the fund, indices are not
investments, do not incur fees, and are not professionally managed. It is not
possible to invest directly in an index. Securities in the fund may not match
those in an index.
For the six-month period ended June 30, 2003, the class A shares of Columbia
Short Term Bond Fund returned 2.20% without sales charge. By comparison, the
Merrill Lynch 1-5 Year Government/ Corporate Index returned 2.81%, the Merrill
Lynch 1-3 Year Treasury Index returned 1.31%, and the Lipper Short Investment
Grade Debt Category returned 2.15%.1 The fund's sector and security selections
enabled it to outperform its peer group and the shorter-term index. However, the
fund's relatively short duration caused it to underperform the 1-5 year index,
as bonds with longer maturities outperformed during the period. Duration is a
measure of interest-rate sensitivity.
RESPONDING TO A WEAK RECOVERY
The economy continued to experience a weak recovery, with gross domestic product
(GDP) rising by just 1.4% in the first quarter. Business investment and
industrial production were especially sluggish. The federal government has
sought to stimulate the economy by reducing taxes, increasing the money supply
and lowering short-term interest rates. In late June, the Federal Reserve
lowered the federal funds rate--the overnight lending rate that commercial banks
charge each other--by one quarter of one percentage point, to just 1.00%. In
this environment, mortgage rates dropped to 45-year lows and the resulting wave
of refinancings created additional stimulus for the consumer. As a result,
automobile sales were strong, as was the housing market.
MANAGING WITHIN A RISK-TAKER'S MARKET
As yields on money market mutual funds, CDs, and bank deposits declined to
historically low levels, fixed-income investors sought higher yields by moving
into lower quality securities as well as securities with longer maturities. This
trend toward risk-taking provided positive returns to the fund's shareholders.
However, the fund's conservative nature limited the amount of benefit we could
derive as compared to
AVERAGE ANNUAL TOTAL RETURN (%) As of June 30, 2003
CLASS A CLASS B CLASS D
- ------------------------------------------------------------------------------------------------
INCEPTION DATE 11/1/02 11/1/02 11/1/02
- ------------------------------------------------------------------------------------------------
WITHOUT WITH WITHOUT WITH WITHOUT WITH
SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE
- ------------------------------------------------------------------------------------------------
6-month
(cumulative) 2.20 -2.63 1.85 -3.15 2.13 0.09
- ------------------------------------------------------------------------------------------------
1-year 5.00 0.00 4.47 -0.53 4.87 2.79
- ------------------------------------------------------------------------------------------------
5-year 5.71 4.69 5.60 5.28 5.68 5.48
- ------------------------------------------------------------------------------------------------
10-year 5.26 4.75 5.20 5.20 5.24 5.13
- ------------------------------------------------------------------------------------------------
CLASS G CLASS T CLASS Z
- -------------------------------------------------------------------------------
INCEPTION DATE 11/1/02 11/1/02 11/6/86
- -------------------------------------------------------------------------------
WITHOUT WITH WITHOUT WITH WITHOUT
SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE
- -------------------------------------------------------------------------------
6-month
(cumulative) 1.94 -3.06 2.30 -2.54 2.40
- -------------------------------------------------------------------------------
1-year 4.65 -0.35 5.12 0.11 5.26
- -------------------------------------------------------------------------------
5-year 5.64 5.15 5.73 4.72 5.76
- -------------------------------------------------------------------------------
10-year 5.22 5.22 5.27 4.76 5.28
- -------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal
value and investment returns will fluctuate, resulting in a gain or loss on
sale. All results shown assume reinvestment of distributions, if any. The "with
sales charge" returns include the maximum 4.75% charge for class A shares, the
appropriate class B contingent deferred sales charge (CDSC) for the holding
period after purchase as follows: through first year-5%, second year-4%, third
year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the
class D sales charge of 1% which also carries a CDSC of 1% that is applied to
shares sold within the first year after they are purchased. For class G shares,
the CDSC for the holding period after purchase is as follows: through first
year-5%, second year-4%, third year-4%, fourth year-4%, fifth year-3%, sixth
year-2%, seventh year-1%, thereafter-0%. For class T shares, the "with sales
charge" returns include the maximum 4.75% charge. Performance for different
share classes will vary based on differences in sales charges and fees
associated with each class.
Performance results reflect any voluntary waivers or reimbursement of fund
expenses by the advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower.
Classes A, B, D, G and T (newer class shares) share performance information
includes returns of the fund's class Z shares (the oldest existing fund class)
for periods prior to the inception of the newer class shares. These class Z
share returns are not restated to reflect any expense differential (e.g., Rule
12b-1 fees) between class Z shares and the newer class shares. Had the expense
differential been reflected, the returns for the periods prior to the inception
of classes A, B, D, G and T would have been lower.
22
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
more aggressive funds. The fund holds only investment grade securities, (with
just 6% of the portfolio in the BBB category) and an average credit quality of
AA+. Similarly, the fund's average duration of between 1.65 and 1.75 years is
materially lower than the duration of the Merrill Lynch 1-5 Year
Government/Corporate Index. Although this hampered relative returns during the
period, a shorter duration should benefit the fund if interest rates rise.
The market's behavior during the past six months was unusual in that lower
quality sectors continued to do well even though economic growth was sluggish
and interest rates continued to fall. The yield differential between lower
quality and investment grade bonds has narrowed. Yet, we have maintained a
market weight in this sector because we believe that corporate bonds still
represent attractive value. At the same time, we have reduced the portfolio's
risk exposure by diversifying across industries and increasing the number of
individual corporate bond holdings.
The fund has maintained its positions in high-quality mortgage-backed and
asset-backed securities, which generally provide higher yields than Treasuries
without the credit risk of lower-quality corporate bonds. The asset-backed
sector did especially well in the first quarter and then stabilized during the
second quarter. Mortgage pass-throughs have been held back by unusually high
refinancing activity, which causes the securities to prepay instead of
appreciating with lower rates. The fund has sought to lower its prepayment
exposure by focusing on mortgages with lower coupons.
HIGHER RATES POSSIBLE IN THE FUTURE
Many analysts and market observers believe that economic growth, as measured by
gross domestic product (GDP), will accelerate during the second half of the
year, possibly to the 3-4% level. Should the economy improve to this extent,
interest rates could also move higher. As a result, the fund has built up a
higher-than-average cash position. This cash position, coupled with the fund's
yield advantage versus money market funds, should afford some protection against
rising interest rates.
LEONARD A. APLET AND RICHARD R. CUTTS
PORTFOLIO MANAGERS
The fund offers the potential for current income and capital preservation but is
subject to interest rate risk and prepayment risk.
PORTFOLIO COMPOSITION
% of net assets
June 30, 2003 (unuadited)
Corporate notes & bonds 34.6
Collateralized mortgage obligations 22.2
Mortgage-backed securities 17.8
Asset-backed securities 9.5
Government issues 8.0
Cash, net receivables & payables 7.3
Commercial mortgage-backed securities 0.6
Because the fund is actively managed, there can be no guarantee the fund will
continue to maintain this composition in the future.
----------------------------------
PORTFOLIO QUALITY
% of portfolio holdings
June 30, 2003 (unaudited)
(Pie Chart)
Agency 22.1
Aaa 38.7
Aa 10.8
A 15.0
Baa 6.6
Treasury 6.8
Ratings shown represent the highest rating assigned to a particular bond by one
of the nationally-recognized ratings agencies: Standard and Poor's Corporation,
Moody's Investors Service, Inc. or Fitch Investors Service, Inc.
- ----------------------
1 Lipper, Inc., a widely respected data provider in the industry, calculates an
average total return for mutual funds with similar investment objectives as
the fund.
23
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
COLUMBIA FIXED INCOME SECURITIES FUND
PERFORMANCE OF A $10,000 INVESTMENT
6/30/93 - 6/30/03
WITHOUT SALES CHARGE WITH SALES CHARGE
-------------------- -----------------
Class A $18,902 $18,007
Class B 18,806 18,806
Class D 18,834 18,646
Class Z 18,976 n/a
-------------------------------------
GROWTH OF $10,000 OVER 10 YEARS
(Mountain Chart)
CLASS A SHARES WITHOUT CLASS A SHARES LEHMAN BROTHERS AGGREGATE
SALES CHARGE WITH SALES CHARGE BOND INDEX
- ---------------------- ---------------------- -------------------------
6/30/93 10000.00 9525.00 10000.00
10058.00 9580.25 10057.00
10275.20 9787.18 10233.00
10303.00 9813.60 10260.60
10331.80 9841.08 10298.60
10196.50 9712.16 10211.00
10246.50 9759.75 10266.20
10387.90 9894.44 10404.80
10174.90 9691.60 10223.70
9934.78 9462.88 9971.22
9854.31 9386.23 9891.45
9846.43 9378.72 9890.46
9829.69 9362.78 9868.70
10003.70 9528.50 10065.10
10011.70 9536.12 10077.20
9869.51 9400.71 9929.03
9847.80 9380.03 9920.09
9825.15 9358.45 9898.27
9900.80 9430.51 9966.57
10090.90 9611.58 10163.90
10320.00 9829.76 10405.80
10390.10 9896.60 10469.30
10542.90 10042.10 10615.90
10963.50 10442.80 11026.70
11051.20 10526.30 11107.20
11022.50 10498.90 11082.70
11161.40 10631.20 11216.90
11283.00 10747.10 11325.60
11430.90 10887.90 11472.90
11605.80 11054.50 11645.00
11772.90 11213.70 11808.00
11844.70 11282.10 11885.90
11625.60 11073.40 11679.10
11548.80 11000.30 11597.40
11459.90 10915.60 11532.40
11434.70 10891.50 11509.40
11595.90 11045.10 11663.60
11614.50 11062.80 11695.10
11605.20 11053.90 11675.20
11814.10 11252.90 11878.30
12064.50 11491.50 12142.00
12287.70 11704.10 12349.70
12171.00 11592.90 12234.80
12219.70 11639.20 12272.80
12257.60 11675.30 12303.40
12127.60 11551.60 12166.90
12305.90 11721.40 12349.40
12420.40 11830.40 12466.70
12563.20 11966.40 12615.00
12908.70 12295.50 12955.60
12793.80 12186.10 12845.50
12978.00 12361.60 13034.40
13175.30 12549.50 13223.40
13214.80 12587.10 13284.20
13335.10 12701.60 13418.30
13495.10 12854.10 13590.10
13484.30 12843.80 13579.20
13515.30 12873.30 13625.40
13585.60 12940.30 13696.20
13720.10 13068.40 13826.40
13831.20 13174.20 13943.90
13852.00 13194.00 13973.20
14077.80 13409.00 14200.90
14345.20 13663.80 14533.20
14219.00 13543.60 14456.20
14278.70 13600.50 14538.60
14328.70 13648.10 14582.20
14430.40 13745.00 14685.80
14153.40 13481.10 14428.80
14243.90 13567.30 14508.10
14290.90 13612.10 14554.50
14120.90 13450.10 14426.50
14058.70 13391.00 14380.30
13964.50 13301.20 14318.50
13936.60 13274.60 14311.30
14108.00 13437.90 14477.30
14147.50 13475.50 14530.90
14164.50 13491.70 14529.40
14109.30 13439.10 14459.70
14026.00 13359.80 14412.00
14169.10 13496.10 14586.40
14349.00 13667.50 14778.90
14298.80 13619.60 14736.00
14287.40 13608.70 14728.70
14597.40 13904.00 15035.00
14701.10 14002.80 15171.80
14924.50 14215.60 15391.80
15029.00 14315.10 15488.80
15111.60 14393.90 15591.00
15386.70 14655.80 15846.70
15699.00 14953.30 16141.50
15976.90 15218.00 16406.20
16115.90 15350.40 16548.90
16202.90 15433.30 16631.70
16100.90 15336.10 16561.80
16208.70 15438.80 16661.20
16255.70 15483.60 16724.50
16628.00 15838.20 17099.10
16787.60 15990.20 17295.80
16963.90 16158.10 17498.10
17306.60 16484.50 17863.80
17090.20 16278.40 17617.30
16975.70 16169.40 17504.60
17079.30 16268.00 17646.30
17217.60 16399.80 17817.50
16974.80 16168.50 17521.80
17288.90 16467.70 17861.70
17420.30 16592.80 18013.50
17484.70 16654.20 18168.40
17652.60 16814.10 18388.20
17954.50 17101.60 18699.00
18216.60 17351.30 19001.90
18005.30 17150.00 18914.50
17985.50 17131.20 18908.80
18258.80 17391.50 19300.30
18280.80 17412.40 19317.60
18534.80 17654.50 19584.20
18521.90 17642.10 19568.50
18660.80 17774.40 19731.00
18959.40 18058.80 20098.00
6/30/03 18902.40 18006.70 20057.80
MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT LIBERTYFUNDS.COM FOR
DAILY PERFORMANCE UPDATES.
Past performance is no guarantee of future investment results. The principal
value and investment returns will fluctuate, resulting in a gain or loss on
sale. The above illustration assumes a $10,000 investment made on June 30, 1993,
and reinvestment of income and capital gains distributions. The Lehman Brothers
Aggregate Bond Index is a market value-weighted index that tracks the daily
price, coupon, pay-downs, and total return performance of fixed-rate, publicly
placed, dollar-denominated, and non-convertible investment grade debt issues
with at least $100 million per amount outstanding and with at least one year to
final maturity. Unlike the fund, indices are not investments, do not incur fees
and are not professionally managed. It is not possible to invest directly in an
index. Securities in the fund may not match those in an index.
At a time when fixed-income investors sought higher yields from lower quality
securities, the fund's high credit standards placed it at a disadvantage with
respect to its peer group, and benchmark index. For the six-month period ended
June 30, 2003, class A shares of Columbia Fixed Income Securities Fund returned
3.51% without sales charge. By comparison, the Lehman Brothers Aggregate Bond
Index returned 3.93%. And the Lipper Corporate Debt Funds A Rated Category
Average was 4.74%.1
CONTINUED DOWNWARD PRESSURE ON RATES
Although many analysts had predicted a return to normal economic growth in 2003,
gross domestic product (GDP) rose by just 1.4% in the first quarter. The Federal
Reserve signalled that it would continue to provide monetary stimulus as long as
the economy remained sluggish, and in late June they lowered the federal funds
rate--the overnight borrowing rate commercial banks charge each other--from
1.25% to just 1.00%.
A RISK TAKER'S MARKET
Although consumers have benefited from historically low rates on mortgages and
other loans, fixed-income investors have found it difficult to generate adequate
yield without venturing into the lower quality sectors of the market, especially
low-rated corporate bonds. The fund can invest up to 10% of its assets in these
securities, and for the first six months our position in the high-yield sector
has been at the 5%-6% level. This relatively low commitment hurt the fund
competitively, because many funds in our peer group allow as much as 20% of
assets to be invested in high-yield securities, even those with ratings as low
as single-B.
Average Annual Total Return (%)
As of June 30, 2003
CLASS A CLASS B CLASS D CLASS Z
- ------------------------------------------------------------------------------------------------------------
INCEPTION DATE 11/1/02 11/1/02 11/1/02 2/25/83
- ------------------------------------------------------------------------------------------------------------
WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE
- ------------------------------------------------------------------------------------------------------------
6-month (cumulative) 3.51 -1.38 3.13 -1.87 3.25 1.20 3.83
- ------------------------------------------------------------------------------------------------------------
1-year 8.09 2.96 7.54 2.54 7.70 5.66 8.51
- ------------------------------------------------------------------------------------------------------------
5-year 6.45 5.42 6.34 6.02 6.37 6.15 6.53
- ------------------------------------------------------------------------------------------------------------
10-year 6.57 6.06 6.52 6.52 6.54 6.43 6.62
- ------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal
value and investment returns will fluctuate, resulting in a gain or loss on
sale. All results shown assume reinvestment of distributions, if any. The
"with sales charge" returns include the maximum 4.75% charge for class A shares,
the appropriate class B contingent deferred sales charge (CDSC) for the holding
period after purchase as follows: through first year-5%, second year-4%, third
year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the
class D sales charge of 1% which also carries a CDSC of 1% that is applied to
shares sold within the first year after they are purchased. Performance for
different share classes will vary based on differences in sales charges and fees
associated with each class.
Performance results reflect any voluntary waivers or reimbursement of fund
expenses by the advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower.
Classes A, B and D (newer class shares) share performance information includes
returns of the fund's class Z shares (the oldest existing fund class) for
periods prior to the inception of the newer class shares. These class Z share
returns are not restated to reflect any differences in expenses (e.g., Rule
12b-1 fees) between class Z shares and the newer class shares. If difference in
expenses had been reflected, the returns shown for periods prior to the
inception of classes A, B and D would have been lower.
24
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
The fund was also hurt versus its peer group because it does not buy any
foreign-denominated or emerging market securities. Emerging market securities
tend to be lower quality and higher yielding, and in the environment that
prevailed during the six-month period, they were in high demand. In general,
foreign bonds have done well thus far in 2003 because of the decline in the
dollar, which has rewarded securities denominated in other currencies.
POSITIONING THE PORTFOLIO
The fund portfolio remains modestly overweight in corporate bonds. Although the
yield differential between corporate bonds and Treasuries of comparable
maturities has come down substantially, we believe that corporates can continue
to outperform in an environment where risk-free returns are as low as they are
today. Among alternative investments, we are underweight in straight mortgage
pass-throughs, whose performance has been held back by high levels of mortgage
prepayments. Prepayments increase as interest rates decline and more homeowners
refinance. However, our underweight in the mortgage sector has been compensated
for by our positions in collateralized mortgage obligations (CMOs), and other
AAA-rated asset-backed securities. Both CMOs and asset-backed securities offer
higher yields than Treasuries without the credit risks associated with the
corporate market.
OUR OUTLOOK
Although a full-blown economic recovery has been long in coming, we are hopeful
that the latest interest rate cut, combined with the stimulus provided by May's
dividend tax cut, will provide the much-needed push to encourage business
spending and capital investment. Many economic analysts are anticipating a
return to a more normal GDP growth rate of between 3% and 4% for the second half
of this year. Should these figures be realized, it is likely that interest rates
will begin to climb sometime in the next six to nine months. While such a
scenario would inevitably put pressure on bond prices, we believe that the
fund's relatively conservative positioning will allow it to post competitive
returns even in a rising-rate environment.
LEONARD A. APLET AND RICHARD R. CUTTS
PORTFOLIO MANAGERS
The fund offers the potential for current income and capital preservation but is
subject to interest rate risk, credit risk and prepayment risk.
PORTFOLIO COMPOSITION
% of net assets
June 30, 2003 (unaudited)
Corporate notes & bonds 36.3
Mortgage-backed securities 22.9
Government issues 17.2
Collateralized mortgage obligations (CMO) 12.9
Asset-backed securities 6.8
Cash, net receivables & payables 3.9
Because the fund is actively managed, there can be no guarantee the fund will
continue to maintain this composition in the future.
---------------------------------------
PORTFOLIO QUALITY
% of portfolio holdings
June 30, 2003 (unaudited)
(Pie Chart)
Treasury/Agency 44
AAA 20.9
AA 9.2
A 13.3
BBB 7.3
BB 3.0
B 2.3
Ratings shown represent the highest rating assigned to a particular bond by one
of the nationally recognized ratings agencies: Standard and Poor's Corporation,
Moody's Investors Service, Inc. or Fitch Investors Service, Inc.
- ----------------------
1 Lipper, Inc., a widely respected data provider in the industry, calculates an
average total return for mutual funds with similar investment objectives as
the fund.
25
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
COLUMBIA NATIONAL MUNICIPAL BOND FUND
PERFORMANCE OF A $10,000 INVESTMENT
2/24/99 - 6/30/03
WITHOUT SALES CHARGE WITH SALES CHARGE
-------------------- -----------------
Class A $12,660 $12,057
Class B 12,599 12,399
Class D 12,626 12,501
Class Z 12,695 n/a
------------------------------------------
Growth of $10,000 Since Inception
(Mountain Chart)
CLASS A SHARES WITHOUT CLASS A SHARES LEHMAN BROTHERS
SALES CHARGE WITH SALES CHARGE MUNICIPAL BOND INDEX
- --------------------- ----------------- --------------------
2/24/99 9934 9462 10014
9920 9449 10039
9951 9478 9981
9893 9423 9837
9733 9271 9872
9768 9304 9794
9671 9212 9797
9675 9216 9692
9567 9112 9794
9674 9214 9721
9608 9152 9678
9543 9089 9790
9641 9183 10004
9868 9399 9945
9791 9326 9893
9714 9253 10155
9985 9511 10296
10110 9630 10455
10267 9779 10401
10209 9724 10514
10336 9845 10594
10407 9913 10856
10654 10148 10963
10749 10238 10998
10765 10253 11097
10861 10345 10977
10737 10227 11096
10844 10329 11170
10918 10399 11335
11082 10555 11522
11256 10721 11483
11216 10684 11620
11346 10807 11522
11217 10684 11413
11097 10570 11610
11297 10760 11750
11426 10883 11519
11205 10673 11744
11454 10910 11816
11517 10970 11941
11649 11096 12095
11818 11257 12240
11952 11384 12508
12236 11655 12300
12017 11446 12249
11950 11382 12507
12209 11629 12476
12137 11561 12651
12328 11742 12658
12339 11753 12742
12431 11841 13040
12733 12129 12985
6/30/03 12660 12057
MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT LIBERTYFUNDS.COM FOR
DAILY PERFORMANCE UPDATES.
Past performance is no guarantee of future investment results. The principal
value and investment returns will fluctuate, resulting in a gain or loss on
sale. The above illustration assumes a $10,000 investment made on February 24,
1999 and reinvestment of income and capital gains distributions. The Lehman
Brothers Municipal Bond Index is an unmanaged index that tracks the performance
of the municipal bond market. Unlike the fund, indices are not investments and
do not incur fees and are not professionally managed. It is not possible to
invest directly in an index. Securities in the fund may not match those in an
index. Index performance is from February 28, 1999.
PORTFOLIO PERFORMANCE
For the six months ended June 30, 2003, class A shares of Columbia National
Municipal Bond Fund returned 3.73%, without a sales charge. This return was
higher than the Lipper General Municipal Debt Funds Category average, which was
3.39%,1 and just short of the Lehman Brothers Municipal Bond Index, which
returned 3.81%. The fund's relative performance in the second half of the period
benefited from an overweight in bonds with intermediate maturities, which
outperformed long- and short-maturity issues. In addition, solid returns from
non-rated issues had a positive impact on performance.
BOND PRICES STALL, THEN MOVE HIGHER
After moving little in the first quarter, yields fell and bond prices moved
higher in the second quarter. Municipal yields fell between 0.15% and 0.40%
across a range of maturities. Investors showed renewed interest in
higher-yielding issues and appeared more willing to invest in riskier securities
as economic prospects improved, the major campaigns in the war in Iraq ceased
and the Federal Reserve Board took a strong pro-growth, anti-deflation stance on
interest rates. The municipal market continued to experience a high level of new
issuance, as municipalities took advantage of attractive financing rates to fund
new projects or refund higher-cost debt. As in any economic slowdown,
municipalities have been seeing a deterioration in their finances as state and
local tax receipts continue to be down from prior years. Many states are on
watch for credit downgrades with major ratings agencies. This negative outlook
reflects the decline in states' revenues during the economic downturn as well as
generally high unemployment.
AVERAGE ANNUAL TOTAL RETURN (%)
As of June 30, 2003
CLASS A CLASS B CLASS D CLASS Z
- ------------------------------------------------------------------------------------------------------------
INCEPTION DATE 11/1/02 11/1/02 11/1/02 2/24/99
- ------------------------------------------------------------------------------------------------------------
WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE
- ------------------------------------------------------------------------------------------------------------
6-month (cumulative) 3.73 -1.20 3.35 -1.65 3.53 1.54 3.98
- ------------------------------------------------------------------------------------------------------------
1-year 8.70 3.54 8.18 3.18 8.41 6.35 9.00
- ------------------------------------------------------------------------------------------------------------
Life 5.58 4.40 5.46 5.07 5.51 5.27 5.64
- ------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal
value and investment returns will fluctuate, resulting in a gain or loss on
sale. All results shown assume reinvestment of distributions, if any. The
"with sales charge" returns include the maximum 4.75% charge for class A shares,
the appropriate class B contingent deferred sales charge (CDSC) for the holding
period after purchase as follows: through first year-5%, second year-4%, third
year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the
class D sales charge of 1% which also carries a CDSC of 1% that is applied to
shares sold within the first year after they are purchased. Performance for
different share classes will vary based on differences in sales charges and fees
associated with each class.
Performance results reflect any voluntary waivers or reimbursement of fund
expenses by the advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower.
Classes A, B, and D (newer class shares) share performance information includes
returns of the fund's class Z shares (the oldest existing fund class) for
periods prior to the inception of the newer class shares. These class Z share
returns are not restated to reflect any expense differential (e.g., Rule 12b-1
fees) between class Z shares and the newer class shares. Had the expense
differential been reflected, the returns for the periods prior to the inception
of classes A, B and D would have been lower.
26
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
IMPROVING ECONOMIC OUTLOOK WOULD BENEFIT MUNICIPALS
We believe municipals remain an attractive investment particularly for highly
taxed investors, even with the recently lowered income tax rates. We expect
rates to rise gradually over the next 12 to 18 months. Economic growth--and
therefore municipal finances--should continue to improve. As always, we will
continue to manage the fund with a focus on generating strong risk-adjusted
long-term total return, taking opportunities to extend the maturity of holdings
from very short-term issues out to intermediate issues and maintain an
intermediate average maturity of 8 to 12 years. The Fund continues to focus on
high-quality issues, diversified nationally across states and sectors.
GRETA R. CLAPP
PORTFOLIO MANAGER
The fund offers the potential for current tax-free income and capital
preservation but is subject to interest rate risk, credit risk, political risk
and geographic risk. Interest income from certain tax-exempt bonds may be
subject to the federal alternative minimum tax for individuals and corporations.
TOP TEN STATES
% of net assets
June 30, 2003 (unaudited)
Washington 13.8
Oregon 12.5
Illinois 10.4
Texas 10.3
Michigan 6.3
Tennessee 3.8
Indiana 3.8
Wisconsin 3.5
Louisiana 3.3
New York 3.3
Because the fund is actively managed, there can be no guarantee the fund will
continue to maintain this composition in these states in the future.
PORTFOLIO QUALITY
% of net assets
June 30, 2003 (unaudited)
(Pie Chart)
Aaa 60.0
Aa 15.6
A 6.0
Baa 2.2
Not Rated 15.4
Net Cash &
Equivalents 0.8
Ratings shown represent the highest rating assigned to a particular bond by one
of the nationally-recognized ratings agencies: Standard and Poor's Corporation,
Moody's Investors Service, Inc. or Fitch Investors Service, Inc.
- ----------------------
1 Lipper, Inc., a widely respected data provider in the industry, calculates an
average total return for mutual funds with similar investment objectives as
the fund.
27
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
COLUMBIA OREGON MUNICIPAL BOND FUND
PERFORMANCE OF A $10,000 INVESTMENT
6/30/93 - 6/30/03
WITHOUT SALES CHARGE WITH SALES CHARGE
-------------------- -----------------
Class A $17,033 $16,224
Class B 16,953 16,953
Class D 16,995 16,821
Class Z 17,087 n/a
---------------------------------------
GROWTH OF $10,000 OVER 10 YEARS
(Mountain Chart)
CLASS A SHARES WITHOUT CLASS A SHARES WITH LEHMAN BROTHERS GENERAL
SALES CHARGE SALES CHARGE OBLIGATION BOND INDEX
- ---------------------- ---------------------- -----------------------
6/30/93 10000 9525 10000
10028 9552 10017
10183 9700 10215
10299 9809 10324
10303 9813 10337
10233 9747 10267
10390 9897 10479
10484 9986 10601
10236 9750 10317
9870 9401 9937
9922 9451 10044
9993 9518 10122
9945 9472 10061
10091 9611 10219
10128 9647 10263
9994 9520 10119
9870 9402 9974
9711 9249 9817
9904 9433 9991
10142 9660 10227
10367 9874 10497
10476 9978 10640
10487 9989 10647
10745 10235 10965
10659 10153 10890
10751 10240 11017
10887 10370 11157
10960 10440 11228
11088 10562 11356
11243 10709 11516
11308 10771 11607
11373 10833 11720
11316 10779 11666
11198 10666 11536
11152 10622 11496
11144 10615 11478
11255 10721 11593
11350 10811 11702
11351 10812 11701
11483 10937 11844
11598 11047 11981
11778 11219 12204
11731 11174 12155
11762 11203 12188
11856 11293 12299
11730 11173 12141
11808 11247 12235
11946 11378 12418
12053 11481 12552
12361 11774 12877
12282 11698 12763
12411 11821 12909
12471 11879 12980
12530 11935 13042
12712 12108 13227
12834 12224 13364
12818 12209 13374
12808 12200 13386
12765 12158 13315
12950 12335 13535
12978 12362 13584
13008 12390 13615
13204 12577 13830
13368 12733 14014
13345 12711 14017
13385 12750 14063
13420 12783 14110
13589 12944 14294
13485 12844 14222
13493 12852 14227
13532 12889 14266
13409 12772 14186
13218 12590 13977
13270 12640 14032
13156 12531 13949
13162 12537 13962
13027 12408 13841
13157 12532 13983
13064 12443 13895
12983 12366 13843
13092 12470 13982
13364 12729 14264
13292 12660 14191
13209 12582 14116
13529 12886 14480
13713 13062 14671
13922 13260 14881
13848 13190 14807
13999 13334 14962
14090 13420 15067
14405 13721 15423
14570 13877 15589
14610 13916 15636
14729 14029 15773
14570 13878 15611
14725 14026 15769
14818 14114 15866
15023 14309 16092
15265 14540 16351
15223 14500 16315
15417 14684 16483
15239 14516 16338
15060 14344 16207
15305 14578 16473
15484 14749 16674
15205 14483 16355
15503 14767 16692
15601 14860 16784
15785 15035 16972
15997 15237 17181
16186 15417 17377
16540 15754 17730
16237 15466 17442
16114 15348 17357
16431 15651 17697
16367 15590 17667
16621 15831 17911
16608 15819 17945
16724 15930 18060
17120 16307 18459
6/30/03 17033 16224 18370
MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT LIBERTYFUNDS.COM FOR
DAILY PERFORMANCE UPDATES.
Past performance is no guarantee of future investment results. The principal
value and investment returns will fluctuate, resulting in a gain or loss on
sale. The above illustration assumes a $10,000 investment made on June 30, 1993
and reinvestment of income and capital gains distributions. The Lehman Brothers
General Obligation Bond Index is a unmanaged index that represents average
market-weighted performance of general obligation securities that have been
issued in the last five years with maturities greater than one year. Unlike the
fund, indices are not investments, do not incur fees and are not professionally
managed. It is not possible to invest directly in an index. Securities in the
fund may not match those in an index.
PORTFOLIO PERFORMANCE
For the six month period ended June 30, 2003, class A shares of Columbia Oregon
Municipal Bond Fund returned 3.62%, without sales charge. The fund returned
slightly less than the Lehman Brothers General Obligation Bond Index, which
gained 3.80%, but beat the Lipper Oregon Municipal Debt Funds Category average,
which was 3.32%.1 The fund's relative performance in the second half of the
period benefited from an overweight in bonds with intermediate maturities, which
outperformed long- and short-maturity issues. In addition, solid returns from
non-rated issues had a positive impact on performance.
BOND PRICES RISE AS YIELDS FALL
After moving little in the first quarter, yields fell and bond prices rose
significantly in the second quarter. Municipal yields fell between 0.15% and
0.40% across a range of maturities. Investors showed renewed interest in
higher-yielding issues and appeared more willing to invest in riskier securities
as economic prospects improved, the major campaigns in the war with Iraq ceased
and the Federal Reserve Board took a strong pro-growth, anti-deflation stance on
interest rates.
The municipal market continued to experience a high level of new issuance, as
municipalities took advantage of attractive rates to fund new projects or refund
higher-cost debt. As in any economic slowdown, municipalities have been
experiencing a deterioration in their finances as state and local tax receipts
have been far below those of prior years. Many states, including Oregon, are on
watch for credit downgrades from major ratings agencies. This negative outlook
reflects the decline in state revenues during the economic downturn as well as
the relatively high unemployment rate. Depending on measures proposed by
legislators to deal with the budget shortfall, the rating
Average Annual Total Return (%) As of June 30, 2003
CLASS A CLASS B CLASS D CLASS Z
- ------------------------------------------------------------------------------------------------------------
INCEPTION DATE 11/1/02 11/1/02 11/1/02 7/2/84
- ------------------------------------------------------------------------------------------------------------
WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE
- ------------------------------------------------------------------------------------------------------------
6-month (cumulative) 3.62 -1.30 3.23 -1.77 3.44 1.41 3.83
- ------------------------------------------------------------------------------------------------------------
1-year 7.86 2.71 7.35 2.35 7.61 5.51 8.20
- ------------------------------------------------------------------------------------------------------------
5-year 5.59 4.57 5.49 5.16 5.54 5.32 5.65
- ------------------------------------------------------------------------------------------------------------
10-year 5.47 4.96 5.42 5.42 5.45 5.34 5.50
- ------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal
value and investment returns will fluctuate, resulting in a gain or loss on
sale. All results shown assume reinvestment of distributions, if any. The "with
sales charge" returns include the maximum 4.75% charge for class A shares, the
appropriate class B contingent deferred sales charge (CDSC) for the holding
period after purchase as follows: through first year-5%, second year-4%, third
year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the
class D sales charge of 1% which also carries a CDSC of 1% that is applied to
shares sold within the first year after they are purchased. Performance for
different share classes will vary based on differences in sales charges and fees
associated with each class.
Performance results reflect any voluntary waivers or reimbursement of fund
expenses by the advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower.
Classes A, B, and D (newer class shares) share performance information includes
returns of the fund's class Z shares (the oldest existing fund class) for
periods prior to the inception of the newer class shares. These class Z share
returns are not restated to reflect any expense differential (e.g., Rule 12b-1
fees) between class Z shares and the newer class shares. Had the expense
differential been reflected, the returns for the periods prior to the inception
of classes A, B and D would have been lower.
28
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
agencies could downgrade state debt from AA to A. We do not believe that such a
downgrade would have a major impact on the price of bonds in the state, since
AA-rated and A-rated debt trade similarly in the marketplace. However, it could
bring prices down slightly.
IMPROVING ECONOMIC OUTLOOK IS POSITIVE FOR MUNICIPALS
Despite recently-lowered income tax rates, we believe municipals remain an
attractive investment--particularly for highly-taxed investors. We expect rates
to rise gradually over the next 12 to 18 months. Economic growth--and therefore
municipal finances--should continue to improve. As always, we will continue to
manage the fund with a focus on generating strong risk-adjusted long-term total
return. We expect to take opportunities to extend the maturity of holdings from
very short-term issues out to intermediate issues and maintain an intermediate
average maturity of 8 to 12 years. The fund continues to focus on high quality
issues, diversified across both counties and sectors within Oregon.
GRETA R. CLAPP
PORTFOLIO MANAGER
The fund offers the potential for current tax-free income and capital
preservation but is subject to interest rate risk, credit risk and political
risk. Single-state municipal bond funds pose additional risks due to limited
geographic diversification. Interest income from certain tax-exempt bonds may be
subject to the federal alternative minimum tax for individuals and corporations.
PORTFOLIO COMPOSITION
% of net assets
June 30, 2003 (unaudited)
Revenue 35.2
Insured revenue 18.3
General obligations 18.1
Insured general obligations 16.9
State general obligations 5.7
Other bonds 2.9
Cash, net receivables & payables 2.3
U.S. territories 0.5
Pre-refunded bond 0.1
Because the fund is actively managed, there can be no guarantee the fund will
continue to maintain this composition in the future.
-------------------------------
PORTFOLIO QUALITY
% of net assets
June 30, 2003 (unaudited)
(Pie Chart)
Aaa 36.8
Aa 40.0
A 7.4
Baa 3.9
Not Rated 11.3
Net Cash & Equivalents 0.5
Other 0.1
Ratings shown represent the highest rating assigned to a particular bond by one
of the nationally-recognized ratings agencies: Standard and Poor's Corporation,
Moody's Investors Service, Inc. or Fitch Investors Service, Inc.
- ----------------------
1 Lipper, Inc., a widely respected data provider in the industry, calculates
an average total return for mutual funds with similar investment objectives as
the fund.
29
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
COLUMBIA HIGH YIELD FUND
PERFORMANCE OF A $10,000 INVESTMENT
10/1/93 - 6/30/03
WITHOUT SALES CHARGE WITH SALES CHARGE
-------------------- -----------------
Class A $19,346 $18,425
Class B 19,233 19,233
Class D 19,258 19,067
Class Z 19,395 n/a
-------------------------------------
GROWTH OF $10,000
SINCE INCEPTION
(Mountain Chart)
CLASS A SHARES CLASS A SHARES MERRILL LYNCH
WITHOUT WITH US HIGH YIELD,
SALES CHARGE SALES CHARGE CASH PAY ONLY INDEX
- ---------------- --------------- -------------------
10/1/93 10000 9525 10000
9992 9517 10188
10015 9539 10244
10112 9632 10346
10251 9764 10573
10221 9735 10497
9909 9439 10155
9738 9275 10036
9819 9352 10000
9845 9377 10037
9905 9435 10107
9968 9494 10177
10017 9542 10173
10028 9552 10198
9917 9446 10111
10019 9543 10224
10176 9692 10368
10426 9931 10691
10521 10021 10840
10756 10245 11094
11029 10505 11440
11105 10577 11527
11258 10723 11658
11278 10742 11729
11461 10916 11863
11612 11061 11947
11745 11187 12064
11934 11367 12258
12099 11525 12452
12139 11563 12471
12002 11432 12437
11985 11416 12443
11996 11426 12533
12030 11458 12608
12119 11543 12694
12349 11763 12825
12563 11966 13100
12701 12098 13244
12968 12352 13512
13060 12439 13616
13175 12549 13721
13375 12740 13913
13173 12547 13759
13328 12695 13915
13648 13000 14196
13820 13164 14412
14192 13518 14758
14179 13506 14733
14369 13687 14978
14356 13674 15076
14520 13830 15220
14717 14018 15364
14957 14247 15593
15046 14331 15657
15139 14420 15792
15215 14492 15866
15262 14537 15977
15370 14640 16057
15558 14819 16149
14940 14230 15451
15204 14482 15482
15131 14413 15228
15631 14888 15921
15635 14893 15926
15828 15076 16083
15741 14993 15961
15928 15171 16098
16041 15279 16349
15834 15082 16237
15785 15035 16206
15769 15020 16230
15681 14936 16071
15664 14920 16003
15667 14923 15909
15922 15166 16090
16007 15246 16174
15925 15169 16093
15939 15182 16108
15848 15096 15882
15921 15165 15887
15912 15156 15712
16246 15474 15981
16392 15614 16096
16669 15877 16292
16669 15877 16198
16529 15744 15723
16293 15519 15231
16744 15949 15562
17318 16496 16489
17464 16634 16750
17373 16548 16528
17331 16508 16348
17444 16615 16662
17291 16469 16319
17500 16669 16572
17727 16885 16733
17034 16225 15660
17618 16782 16121
18080 17221 16644
17856 17008 16526
17963 17110 16619
17799 16954 16459
17967 17113 16851
18051 17194 17119
18015 17159 17026
17558 16724 15816
17266 16446 15186
17534 16701 15566
17465 16636 15317
17443 16614 15188
17935 17083 16098
18053 17195 16340
18210 17345 16810
18354 17482 17027
18669 17783 17468
19093 18186 18450
19109 18201 18649
6/30/03 19346 18425 19158
MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT LIBERTYFUNDS.COM FOR
DAILY PERFORMANCE UPDATES.
Past performance is no guarantee of future investment results. The principal
value and investment returns will fluctuate, resulting in a gain or loss on
sale. The above illustration assumes a $10,000 investment made on October 1,
1993, and reinvestment of income and capital gains distributions. The Merrill
Lynch U.S. High Yield, Cash Pay Only Index is an unmanaged index of
non-investment-grade corporate bonds. Unlike the fund, indices are not
investments, do not incur fees or expenses, and are not professionally managed.
It is not possible to invest directly in an index. Securities in the fund may
not match those in an index. Index performance is from September 30, 1993.
For the six-month period ended June 30, 2003, Columbia High Yield Fund class A
shares returned 7.14% without a sales charge. The fund lagged the Merrill Lynch
US High Yield, Cash Pay Only Index, which returned 17.24%.
The fund's focus on high quality issuers had a negative impact on relative
performance during the period because lower quality issues delivered the
high-yield market's strongest returns. The energy, utility and cable industries
gained renewed strength following a wave of corporate scandals. Many of these
utility and energy companies were able to refinance their debt at lower interest
rates over longer terms, a strategy that helped strengthen their balance sheets.
One notable example of this strategy of extending maturties was AES. The fund
did not have an investment in AES.
Although we missed out on gains from these lower-quality investments, we
identified attractive opportunities in the homebuilding and the hotel sectors,
which benefited the portfolio. Noteworthy contributors to performance included
KB Homes, Toll Brothers, Extended Stay and Host Marriott (1.4%, 0.1%, 1.4% and
0.5% of net assets, respectively).1
CREDIT RESEARCH DRIVES SECURITY SELECTION
The fund uses bottom-up credit analysis to identify high-quality companies with
attractive long-term business prospects and also to stay abreast of potential
negative influences in order to limit or avoid potential losses. During the
period, our research led us to increase our weight in several existing holdings
and to add new names based on expectations for improving margins and debt. For
example, in the paper/forest products industry, we added Abitibi-Consolidated,
Cascades and Stone-Container (1.2%, 0.5% and 0.8% of net assets, respectively).
In the diversifed media sector, we purchased Houghton
Average Annual Total Return (%) As of June 30, 2003
CLASS A CLASS B CLASS D CLASS Z
- ------------------------------------------------------------------------------------------------------------
INCEPTION DATE 11/1/02 11/1/02 11/1/02 10/1/93
- ------------------------------------------------------------------------------------------------------------
WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE
- ------------------------------------------------------------------------------------------------------------
6-month (cumulative) 7.14 2.02 6.69 1.69 6.80 4.80 7.34
- ------------------------------------------------------------------------------------------------------------
1-year 10.17 4.94 9.53 4.53 9.67 7.52 10.45
- ------------------------------------------------------------------------------------------------------------
5-year 4.71 3.70 4.58 4.29 4.61 4.40 4.76
- ------------------------------------------------------------------------------------------------------------
Since Inception 7.01 6.47 6.94 6.94 6.96 6.85 7.03
- ------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal
value and investment returns will fluctuate, resulting in a gain or loss on
sale. All results shown assume reinvestment of distributions, if any. The
"with sales charge" returns include the maximum 4.75% charge for class A shares,
the appropriate class B contingent deferred sales charge (CDSC) for the holding
period after purchase as follows: through first year-5%, second year-4%, third
year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the
class D sales charge of 1% which also carries a CDSC of 1% that is applied to
shares sold within the first year after they are purchased. Performance for
different share classes will vary based on differences in sales charges and fees
associated with each class.
Performance results reflect any voluntary waivers or reimbursement of fund
expenses by the advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower.
Classes A, B, and D (newer class shares) share performance information includes
returns of the fund's class Z shares (the oldest existing fund class) for
periods prior to the inception of the newer class shares. These class Z share
returns are not restated to reflect any expense differential (e.g., Rule 12b-1
fees) between class Z shares and the newer class shares. Had the expenses
differential been reflected, the returns for the periods prior to the inception
of classes A, B and D would have been lower.
30
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
Mifflin (1.2% of net assets). We also increased our position in the chemical
sector, adding three new names to the portfolio including Equistar Chemicals,
MacDermid and Ethyl (0.8%, 0.2% and 1.1% of net assets, respectively). Finally,
in the health care industry, we purchased Apogent Technologies and Province
Healthcare (0.1% and 0.8% of net assets).
Ongoing credit analysis and careful portfolio monitoring also prompted us to
reduce or eliminate selected holdings. For example, we sold our position in
Pennzoil because we believed that its bonds had achieved fair value following
the company's acquisition by Royal Dutch Shell. In addition, IMC Global, a
chemical-related company, delivered weaker-than-anticipated performance and was
subsequently eliminated from the portfolio. We reduced our overall exposure to
homebuilders with the sale of Technical Olympic.
LOOKING AHEAD
We believe that a declining default rate, attractive yields and an increased
focus on corporate business practices bode well for the high-yield market.
High-yield investments are generally riskier, but they offer investors a
compelling alternative to traditional fixed-income investments. We remain
optimistic that when the economy finally recovers, these companies will be well
positioned to continue to deliver attractive returns on a risk-adjusted basis.
JEFFREY L. RIPPEY AND KURT M. HAVNAER
PORTFOLIO MANAGERS
High-yield investing offers the potential for high income and attractive total
returns, but also involves certain risks, including credit risks associated with
lower-rated bonds, and interest rate risks.~
TOP FIVE SECTORS
% of net assets
June 30, 2003 (unaudited)
Energy 9.5
Health care 8.6
Cable TV 7.0
Gaming 6.5
Packaging 6.4
Because the fund is actively managed, there can be no guarantee the fund will
continue to maintain these sectors in the future.
------------------------------
PORTFOLIO QUALITY
% of portfolio holdings
June 30, 2003 (unaudited)
(Pie Chart)
Ba 56.0
B 42.2
Baa 1.8
Ratings shown represent the highest rating assigned to a particular bond by one
of the nationally-recognized ratings agencies: Standard and Poor's Corporation,
Moody's Investors Service, Inc. or Fitch Investors Service, Inc.
- --------------------
1 Holdings are disclosed as of June 30, 2003 and are subject to change.
31
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
COLUMBIA DAILY INCOME COMPANY
PERFORMANCE OF A $10,000 INVESTMENT
6/30/93 - 6/30/03
WITHOUT
SALES CHARGE
------------
Class Z $15,001
-------------------
GROWTH OF $10,000
OVER 10 YEARS
(Mountain Chart)
CONSUMER PRICE
CLASS Z SHARES INDEX
-------------- --------------
6/30/93 10000.00 10000.00
10021.00 10000.00
10042.00 10028.00
10062.10 10049.10
10083.30 10090.30
10103.40 10097.30
10124.60 10097.30
10146.90 10124.60
10166.20 10159.00
10189.60 10193.60
10214.00 10207.80
10242.60 10215.00
10273.40 10249.70
10306.20 10277.40
10341.30 10318.50
10376.40 10346.30
10414.80 10353.60
10454.40 10367.00
10499.40 10367.00
10546.60 10408.50
10590.90 10450.10
10640.70 10484.60
10689.60 10519.20
10739.90 10540.30
10788.20 10561.30
10837.80 10561.30
10886.60 10588.80
10933.40 10610.00
10981.50 10645.00
11028.70 10637.50
11077.30 10630.10
11124.90 10692.80
11168.30 10727.00
11213.00 10782.80
11256.70 10824.90
11301.70 10845.40
11345.80 10851.90
11392.30 10872.60
11439.00 10893.20
11484.80 10928.10
11531.90 10963.00
11578.00 10983.90
11625.50 10983.90
11673.10 11019.00
11716.30 11053.20
11764.30 11080.80
11811.40 11095.20
11861.00 11088.60
11910.80 11101.90
11962.00 11115.20
12013.50 11136.30
12062.70 11164.20
12114.60 11192.10
12165.50 11185.40
12219.00 11171.90
12272.80 11193.20
12320.60 11214.40
12372.40 11235.70
12423.10 11256.00
12475.30 11276.20
12526.40 11289.70
12580.30 11303.30
12634.40 11316.90
12687.50 11330.40
12740.80 11357.60
12790.40 11357.60
12841.60 11350.80
12891.70 11378.10
12935.50 11391.70
12983.40 11425.90
13030.10 11509.30
13078.30 11509.30
13125.40 11509.30
13175.30 11543.80
13226.70 11571.50
13278.30 11627.10
13332.70 11648.00
13387.40 11655.00
13447.60 11655.00
13509.50 11690.00
13566.20 11758.90
13628.60 11855.30
13689.90 11862.50
13757.00 11876.70
13824.40 11938.50
13896.30 11965.90
13968.60 11965.90
14038.40 12028.10
14111.40 12048.60
14182.00 12055.80
14254.30 12048.60
14325.60 12124.50
14384.30 12173.00
14444.70 12201.00
14498.20 12249.80
14547.50 12309.80
14592.60 12325.80
14634.90 12291.30
14674.40 12291.30
14709.60 12346.60
14739.00 12304.60
14762.60 12283.70
14783.30 12235.80
14801.00 12264.00
14815.80 12313.00
14832.10 12382.00
14846.90 12451.30
14861.80 12451.30
14876.70 12458.80
14891.50 12472.50
14906.40 12513.60
14919.80 12534.90
14933.30 12556.20
14945.20 12556.20
14957.20 12528.60
14966.10 12583.70
14973.60 12680.60
14981.10 12756.70
14988.60 12728.60
14997.60 12708.30
6/30/03 15001.00 12721.00
MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT WWW.LIBERTYFUNDS.COM FOR
DAILY PERFORMANCE UPDATES.
Past performance is no guarantee of future investment results. The principal
value and investment returns will fluctuate, resulting in a gain or loss on
sale. The above illustration assumes a $10,000 investment made on June 30, 1993,
and reinvestment of income and capital gains distributions. An investment in the
fund is not insured or guaranteed by the Federal Deposit Insurance Corporation
or any other governmental agency. Although the fund seeks to preserve the value
of your investment at $1 per share, it is possible to lose money by investing
in the fund.
RESULTS FOR THE YEAR
For the six-month period ended June 30, 2003, Columbia Daily Income Company
class Z shares returned 0.33%. Interest rates were low throughout the period,
and in June the Federal Reserve Board cut the federal funds rate from 1.25% to
1.00%, a 45-year low. The federal funds rate is the interest rate that
commercial banks charge each other on overnight loans. The Fed sets the rate
level to influence consumer behavior as many other borrowing rates, such as
those on mortgages and credit cards, follow its direction. Reducing short-term
interest rates is also used as a stimulus to support economic recovery. With the
economy still waffling, the Fed hopes its most recent move will provide a
jump-start to sustainable growth.
While lower interest rates may have been a welcomed move for consumers and
businesses, the effect on money market funds was to bring returns on eligible
portfolio securities down to an all-time low.
COMMITMENT TO HIGH QUALITY
Despite declining short-term rates, we remained committed to our universe of
government and corporate obligations bearing the highest ratings (A1/P1). At the
end of June, 25% of the portfolio was invested in government securities and 75%
was in the highest quality corporate debt. In an effort to extract as much
income as possible from our investments, we extended the portfolio's average
maturity during the period and worked to keep fund expenses low. We do not
foresee rising rates for the rest of 2003, and if rates should decline again we
expect to move the fund's maturity out even further.
LEONARD A. APLET
PORTFOLIO MANAGER
There is a chance that the fund's investments may not keep pace with the
rate of inflation over the long-term. Also, an investment in the fund is not
insured or guaranteed by the Federal Deposit Insurance Corporation or any other
governmental agency. Although the fund seeks to preserve the value of our
investment at $1 per share, it is possible to lose money by investing in the
fund.
AVERAGE ANNUAL TOTAL RETURN (%)
As of June 30, 2003
COLUMBIA CONSUMER PRICE
DAILY INCOME INDEX
CLASS Z (INFLATION)
- ----------------------------------------------------
6-month (cumulative) 0.33 1.55
1-year 0.87 2.11
5-year 3.67 2.42
10-year 4.14 2.44
PORTFOLIO HIGHLIGHTS
6/30/03
Seven day current yield 0.53%
Seven day effective yield 0.54%
Average days to maturity 36
32
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA COMMON STOCK FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
JUNE 30, DECEMBER 31,
CLASS A SHARES 2003 2002(a)
----------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.91 $ 15.09
----------- ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b) ............. 0.02 --(c)
Net realized and unrealized gain (loss)
on investments............................... 1.45 (0.11)
----------- ------------
Total from investment operations ............ 1.47 (0.11)
----------- ------------
LESS DISTRIBUTIONS:
From net investment income ................... -- (0.07)
----------- ------------
NET ASSET VALUE, END OF PERIOD ................. $ 16.38 $ 14.91
----------- ------------
TOTAL RETURN (d)(e) ............................ 9.86% (0.71)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ....... $ 197 $ 32
Ratio of expenses to average net assets (f)(g).. 1.37% 1.32%
Ratio of net investment income (loss) to
average net assets(f)(g) ...................... 0.20% (0.03)%
Portfolio turnover rate ........................ 83%(e) 107%
(a) Class A shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Rounds to less than $0.01 per share.
(d) Total return at net asset value assuming all distributions reinvested and no
initial sales charge or contingent deferred sales charge.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
COLUMBIA COMMON STOCK FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
JUNE 30, DECEMBER 31,
CLASS B SHARES 2003 2002(a)
----------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.91 $ 15.09
----------- ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b) ..................... (0.06) (0.01)
Net realized and unrealized gain (loss)
on investments.............................. 1.46 (0.12)
----------- ------------
Total from investment operations ........... 1.40 (0.13)
----------- ------------
LESS DISTRIBUTIONS:
From net investment income .................. -- (0.05)
----------- ------------
NET ASSET VALUE, END OF PERIOD $ 16.31 $ 14.91
----------- ------------
TOTAL RETURN (c)(d) ........................... 9.39% (0.84)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands).................................... $ 421 $ 109
Ratio of expenses to average net .............. 2.33% 2.07%
assets (e)(f)
Ratio of net investment loss to average ....... (0.77)% (0.78)%
net assets (e)(f)
Portfolio turnover rate ....................... 83%(d) 107%
(a) Class B shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
See Accompanying Notes to Financial Statements
33
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA COMMON STOCK FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
JUNE 30, DECEMBER 31,
CLASS D SHARES 2003 2002(a)
----------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.92 $ 15.09
----------- ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b) ..................... (0.06) (0.01)
Net realized and unrealized gain (loss) on
investments ................................ 1.45 (0.11)
----------- ------------
Total from investment operations ........... 1.39 (0.12)
----------- ------------
LESS DISTRIBUTIONS:
From net investment income .................. -- (0.05)
----------- ------------
NET ASSET VALUE, END OF PERIOD $ 16.31 $ 14.92
----------- ------------
TOTAL RETURN (c)(d) ........................... 9.32% (0.77)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ...... $ 107 $ 30
Ratio of expenses to average net assets (e)(f). 2.53% 2.07%
Ratio of net investment loss to average
net assets (e)(f) ............................ (0.84)% (0.78)%
Portfolio turnover rate ....................... 83%(d) 107%
(a) Class D shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and no
initial sales charge or contingent deferred sales charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
COLUMBIA COMMON STOCK FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED
JUNE 30, YEAR ENDED DECEMBER 31,
CLASS Z SHARES 2003 2002(a) 2001 2000 1999 1998
----------- -------- ------- -------- -------- --------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.91 $ 19.97 $ 24.34 $ 28.90 $ 24.40 $ 22.02
----------- -------- ------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss).................. 0.05(b) 0.07(b) 0.07 (0.01) 0.03 0.09
Net realized and unrealized gain (loss)
on investments............................... 1.45 (5.05) (4.35) (1.54) 6.25 5.68
----------- -------- ------- -------- -------- --------
Total from investment operations............. 1.50 (4.98) (4.28) (1.55) 6.28 5.77
----------- -------- ------- -------- -------- --------
LESS DISTRIBUTIONS:
From net investment income.................... -- (0.08) (0.07) -- (0.03) (0.13)
From net realized gains....................... -- -- (0.02) (3.01) (1.75) (3.26)
----------- -------- ------- -------- -------- --------
Total distributions............................. -- (0.08) (0.09) (3.01) (1.78) (3.39)
----------- -------- ------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 16.41 $ 14.91 $ 19.97 $ 24.34 $ 28.90 $ 24.40
----------- -------- ------- -------- -------- --------
TOTAL RETURN (c)................................ 10.06%(d) (24.92)% (17.60)% (5.73)% 25.76% 26.28%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)........ $ 425,685 $416,638 $681,397 $895,134 $959,910 $797,147
Ratio of expenses to average net assets (e)..... 0.92%(f) 0.86% 0.80% 0.75% 0.77% 0.80%
Ratio of net investment income (loss) to
average net assets (e)......................... 0.63%(f) 0.43% 0.32% (0.05)% 0.09% 0.56%
Portfolio turnover rate......................... 83%(d) 107% 114% 104% 97% 141%
(a) On November 1, 2002, the existing Fund shares were redesignated Class Z
shares.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
See Accompanying Notes to Financial Statements
34
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA GROWTH FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
JUNE 30, DECEMBER 31,
CLASS A SHARES 2003 2002(a)
----------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 20.83 $ 21.52
----------- ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b)....................... (0.04) --(c)
Net realized and unrealized gain (loss) on
investments ................................. 2.68 (0.69)
----------- ------------
Total from investment operations............. 2.64 (0.69)
----------- ------------
NET ASSET VALUE, END OF PERIOD $ 23.47 $ 20.83
----------- ------------
TOTAL RETURN (d)(e)............................. 12.67% (3.21)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)........ $ 4,063 $ 3,077
Ratioof expenses to average net assets (f)(g)... 1.34% 1.15%
Ratioof net investment loss to average net
assets (f)(g).................................. (0.39)% (0.36)%
Portfolio turnover rate......................... 82%(e) 165%
(a) Class A shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Rounds to less than $0.01 per share.
(d) Total return at net asset value assuming no initial sales charge or
contingent deferred sales charge.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
COLUMBIA GROWTH FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
JUNE 30, DECEMBER 31,
CLASS B SHARES 2003 2002(a)
----------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 20.82 $ 21.52
----------- ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b)....................... (0.11) (0.03)
Net realized and unrealized gain (loss) on
investments.................................. 2.67 (0.67)
----------- ------------
Total from investment operations................ 2.56 (0.70)
----------- ------------
NET ASSET VALUE, END OF PERIOD $ 23.38 $ 20.82
----------- ------------
TOTAL RETURN (c)(d)............................. 12.30% (3.25)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)........ $ 641 $ 114
Ratioof expenses to average net assets (e)(f)... 1.95% 1.88%
Ratioof net investment loss to average net
assets (e)(f).................................. (1.04)% (1.09)%
Portfolio turnover rate......................... 82%(d) 165%
(a) Class B shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming no contingent deferred sales
charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
See Accompanying Notes to Financial Statements
35
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA GROWTH FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
JUNE 30, DECEMBER 31,
CLASS D SHARES 2003 2002(a)
----------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 20.82 $ 21.52
----------- ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b)....................... (0.12) (0.02)
Net realized and unrealized gain (loss) on
investments.................................. 2.67 (0.68)
----------- ------------
Total from investment operations............. 2.55 (0.70)
----------- ------------
NET ASSET VALUE, END OF PERIOD $ 23.37 $ 20.82
----------- ------------
TOTAL RETURN (c)(d)............................. 12.25% (3.25)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)........ $ 203 $ 103
Ratioof expenses to average net assets (e)(f)... 2.05% 1.88%
Ratioof net investment loss to average net
assets (e)(f).................................. (1.11)% (1.09)%
Portfolio turnover rate......................... 82%(d) 165%
(a) Class D shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming no initial sales charge or
contingent deferred sales charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
COLUMBIA GROWTH FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
JUNE 30, DECEMBER 31,
CLASS G SHARES 2003 2002(a)
----------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 20.83 $ 21.52
----------- ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b) ...................... (0.11) (0.03)
Net realized and unrealized gain (loss) on
investments ................................. 2.66 (0.66)
----------- ------------
Total from investment operations ............ 2.55 (0.69)
----------- ------------
NET ASSET VALUE, END OF PERIOD ................ $ 23.38 $ 20.83
----------- ------------
TOTAL RETURN (c)(d) ........................... 12.24% (3.21)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ...... $ 14,320 $ 13,705
Ratioof expenses to average net assets (e)(f) . 2.00% 1.83%
Ratioof net investment loss to average net
assets (e)(f) ................................ (1.05)% (1.04)%
Portfolio turnover rate ....................... 82%(d) 165%
(a) Class G shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming no contingent deferred sales
charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
See Accompanying Notes to Financial Statements
36
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA GROWTH FUND
For a Fund Share Outstanding Throughout Each Period
(UNAUDITED)
SIX MONTHS
ENDED
JUNE 30, YEAR ENDED DECEMBER 31,
CLASS Z SHARES 2003 2002(a) 2001 2000 1999 1998
----------- -------- ---------- ---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 20.85 $ 31.35 $ 40.07 $ 48.91 $ 42.51 $ 34.34
----------- -------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... 0.01(b) (0.01)(b) (0.02) (0.08) (0.03) 0.03
Net realized and unrealized gain
(loss) on investments ................. 2.68 (10.49) (8.55) (3.49) 11.09 10.39
----------- -------- ---------- ---------- ---------- ----------
Total from investment operations ...... 2.69 (10.50) (8.57) (3.57) 11.06 10.42
----------- -------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS
From net investment income ............. -- -- -- -- --(c) (0.08)
From net realized gains ................ -- -- (0.15) (5.27) (4.66) (2.17)
----------- -------- ---------- ---------- ---------- ----------
Total distributions .................. -- -- (0.15) (5.27) (4.66) (2.25)
----------- -------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 23.54 $ 20.85 $ 31.35 $ 40.07 $ 48.91 $ 42.51
----------- -------- ---------- ---------- ---------- ----------
TOTAL RETURN (d) ......................... 12.90%(e) (33.49)% (21.40)% (7.94)% 26.02% 30.34%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) . $867,902 $811,648 $1,325,844 $1,919,227 $2,160,739 $1,753,024
Ratioof expenses to average net assets (f) 0.84%(g) 0.82% 0.72% 0.65% 0.65% 0.68%
Ratioof net investment income (loss) to
average net assets (f) .................. 0.10%(g) (0.03)% (0.07)% (0.18)% (0.07)% 0.21%
Portfolio turnover rate .................. 82%(e) 165% 122% 114% 118% 105%
(a) On November 1, 2002, the existing Fund shares were redesignated Class Z
shares.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Rounds to less than $0.01 per share.
(d) Total return at net asset value assuming all distributions reinvested.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
COLUMBIA INTERNATIONAL STOCK FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
JUNE 30, DECEMBER 31,
CLASS A SHARES 2003 2002(a)
----------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.05 $ 10.04
----------- ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b) ............. 0.05 (0.02)
Net realized and unrealized gain on
investments, foreign currency and
foreign capital gains tax ................... 0.68 0.03
----------- ------------
Total from investment operations ............ 0.73 0.01
----------- ------------
NET ASSET VALUE, END OF PERIOD $ 10.78 $ 10.05
----------- ------------
TOTAL RETURN (c)(d) ............................ 7.26% 0.10%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ....... $ 20,616 $ 20,178
Ratio of expenses to average net assets (e)(f) . 1.83% 1.86%
Ratio of net investment income (loss) to average
net assets (e)(f).............................. 1.08% (0.39)%
Portfolio turnover rate ........................ 24%(d) 96%
(a) Class A shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming no initial sales charge or
contingent deferred sales charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
See Accompanying Notes to Financial Statements
37
FINANCIAL HIGHLIGHTS
COLUMBIA INTERNATIONAL STOCK FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
JUNE 30, DECEMBER 31,
CLASS B SHARES 2003 2002(a)
----------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.02 $ 10.04
----------- ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b) ................... --(c) (0.05)
Net realized and unrealized gain on
investments, foreign currency and foreign
capital gains tax ........................ 0.68 0.03
----------- ------------
Total from investment operations ......... 0.68 (0.02)
----------- ------------
NET ASSET VALUE, END OF PERIOD $ 10.70 $ 10.02
----------- ------------
TOTAL RETURN (d)(e) ......................... 6.79% (0.20)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .... $ 10,063 $ 10,920
Ratio of expenses to average net assets (f)(g) 2.94% 3.64%
Ratio of net investment lossto average net
assets (f)(g)............................... (0.06)% (2.17)%
Portfolio turnover .......................... 24%(e) 96%
(a) Class B shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Rounds to less than $0.01 per share.
(d) Total return at net asset value assuming no contingent deferred sales
charge.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
COLUMBIA INTERNATIONAL STOCK FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
JUNE 30, DECEMBER 31,
CLASS D SHARES 2003 2002(a)
----------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.02 $ 10.04
----------- ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b) .......... 0.02 (0.04)
Net realized and unrealized gain on
investments, foreign currency and foreign
capital gains tax ........................ 0.69 0.02
----------- ------------
Total from investment operations ............ 0.71 (0.02)
----------- ------------
NET ASSET VALUE, END OF PERIOD $ 10.73 $ 10.02
----------- ------------
TOTAL RETURN (c)(d).......................... 7.09% (0.20)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands ..... $ 564 $ 542
Ratio of expenses to average net assets (e)(f) 2.44% 3.48%
Ratio of net investment income (loss) to
average net assets (e)(f) .................. 0.51% (2.01)%
Portfolio turnover .......................... 24%(d) 96%
(a) Class D shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming no initial sales charge or
contingent deferred sales charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
See Accompanying Notes to Financial Statements
38
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA INTERNATIONAL STOCK FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED
JUNE 30, YEAR ENDED DECEMBER 31,
CLASS Z SHARES 2003 2002(a) 2001 2000 1999 1998
----------- --------- --------- --------- --------- ---------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.05 $ 12.03 $ 14.77 $ 22.81 $ 15.45 $ 13.70
----------- --------- --------- --------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) ............ 0.08(b) --(b)(c) 0.01 (0.04) (0.05) --(c)
Net realized and unrealized gain (loss)
on investments, foreign currency and
foreign capital gains tax .............. 0.70 (1.94) (2.74) (5.17) 9.00 1.76
----------- --------- --------- --------- --------- ---------
Total from investment operations ...... 0.78 (1.94) (2.73) (5.21) 8.95 1.76
----------- --------- --------- --------- --------- ---------
LESS DISTRIBUTIONS:
From net investment income .............. -- (0.01) (0.01) -- -- --
From net realized gains ................. -- -- -- (2.83) (1.59) (0.01)
Return of capital ....................... -- (0.03) -- -- -- --
----------- --------- --------- --------- --------- ---------
Total distributions ................... -- (0.04) (0.01) (2.83) (1.59) (0.01)
----------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 10.83 $ 10.05 $ 12.03 $ 14.77 $ 22.81 $ 15.45
----------- --------- --------- --------- --------- ---------
TOTAL RETURN (d) .......................... 7.76%(e) (16.10)% (18.47)% (22.64)% 57.93% 12.83%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands ... $ 205,899 $ 143,332 $ 135,626 $ 175,316 $ 239,223 $ 134,193
Ratio of expenses to average net assets (f) 1.30%(g) 1.49% 1.56% 1.42% 1.48% 1.56%
Ratio of net investment income (loss) to
average net assets(f) .................... 1.68%(g) (0.02)% 0.06% (0.19)% (0.35)% (0.02)%
Portfolio turnover rate ................... 24%(e) 96% 130% 112% 94% 74%
(a) On November 1, 2002, the existing Fund shares were redesignated Class Z
shares.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Rounds to less than $0.01 per share.
(d) Total return at net asset value assuming all distributions reinvested.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
See Accompanying Notes to Financial Statements
39
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA SPECIAL FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
JUNE 30, DECEMBER 31,
CLASS A SHARES 2003 2002(a)
----------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.77 $ 15.15
----------- ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b) ................... (0.10) (0.02)
Net realized and unrealized gain
(loss) on investments .................... 2.16 (0.36)
----------- ------------
Total from Investment Operations ......... 2.06 (0.38)
----------- ------------
NET ASSET VALUE, END OF PERIOD $ 16.83 $ 14.77
----------- ------------
TOTAL RETURN (c)(d) ......................... 13.95% (2.51)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .... $ 3,279 $ 1,180
Ratioof expenses to average net assets (e)(f) 1.58% 1.49%
Ratioof net investment loss to average net
assets (e)(f) .............................. (1.28)% (1.22)%
Portfolio turnover rate ..................... 66%(d) 88%
(a) Class A shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming no initial sales charge or
contingent deferred sales charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
COLUMBIA SPECIAL FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
JUNE 30, DECEMBER 31,
CLASS B SHARES 2003 2002(a)
----------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.76 $ 15.15
----------- ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b) .................. (0.15) (0.04)
Net realized and unrealized gain
(loss) on investments ................... 2.15 (0.35)
----------- ------------
Total from Investment Operations ........ 2.00 (0.39)
----------- ------------
NET ASSET VALUE, END OF PERIOD $ 16.76 $ 14.76
----------- ------------
TOTAL RETURN (c)(d) ........................ 13.55% (2.57)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands) ................................ $ 3,960 $ 3,383
Ratioof expenses to average net assets (e)(f) 2.33% 2.32%
Ratioof net investment loss to average net
assets (e)(f) ............................. (2.03)% (2.05)%
Portfolio turnover rate .................... 66%(d) 88%
(a) Class B shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming no contingent deferred sales
charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
See Accompanying Notes to Financial Statements
40
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA SPECIAL FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
JUNE 30, DECEMBER 31,
CLASS D SHARES 2003 2002(a)
----------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.76 $ 15.15
----------- ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b) ................... (0.15) (0.04)
Net realized and unrealized gain
(loss) on investments .................... 2.14 (0.35)
----------- ------------
Total from Investment Operations ........ 1.99 (0.39)
----------- ------------
NET ASSET VALUE, END OF PERIOD $ 16.75 $ 14.76
----------- ------------
TOTAL RETURN (c)(d) ......................... 13.48% (2.57)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands) ................................. $ 677 $ 433
Ratioof expenses to average net assets (e)(f) 2.24% 2.32%
Ratioof net investment loss to average net
assets (e)(f)............................... (1.94)% (2.05)%
Portfolio turnover rate ..................... 66%(d) 88%
(a) Class D shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming no initial sales charge or
contingent deferred sales charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
COLUMBIA SPECIAL FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
JUNE 30, DECEMBER 31,
CLASS G SHARES 2003 2002(a)
----------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.77 $ 15.15
----------- ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b) ................... (0.16) (0.04)
Net realized and unrealized gain
(loss) on investments .................... 2.14 (0.34)
----------- ------------
Total from Investment Operations ......... 1.98 (0.38)
----------- ------------
NET ASSET VALUE, END OF PERIOD $ 16.75 $ 14.77
----------- ------------
TOTAL RETURN (c)(d) ......................... 13.41% (2.51)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands) ................................. $ 760 $ 753
Ratioof expenses to average net assets
(e)(f) ..................................... 2.45% 2.35%
Ratioof net investment loss to average net
assets(e)(f) ............................... (2.15)% (2.08)%
Portfolio turnover rate ..................... 66%(d) 88%
(a) Class G shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming no contingent deferred sales
charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
See Accompanying Notes to Financial Statements
41
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA SPECIAL FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
JUNE 30, DECEMBER 31,
CLASS T SHARES 2003 2002(a)
----------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.79 $ 15.15
----------- ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b) ................... (0.09) (0.02)
Net realized and unrealized gain
(loss) on investments .................... 2.16 (0.34)
----------- ------------
Total from Investment Operations ......... 2.07 (0.36)
----------- ------------
NET ASSET VALUE, END OF PERIOD $ 16.86 $ 14.79
----------- ------------
TOTAL RETURN (c)(d) ......................... 14.00% (2.38)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands)................................... $ 28,360 $ 25,966
Ratioof expenses to average net assets(e)(f) 1.44% 1.45%
Ratioof net investment loss to average net
assets (e)(f) .............................. (1.14)% (1.18)%
Portfolio turnover rate ..................... 66%(d) 88%
(a) Class T shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming no initial sales charge or
contingent deferred sales charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
See Accompanying Notes to Financial Statements
42
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA SPECIAL FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED
JUNE 30, YEAR ENDED DECEMBER 31,
CLASS Z SHARES 2003 2002(a) 2001 2000 1999 1998
----------- --------- --------- ----------- --------- ---------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.79 $ 19.60 $ 25.99 $ 29.93 $ 23.62 $ 20.26
----------- --------- --------- ----------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss .................... (0.06)(b) (0.13)(b) (0.11) (0.10) (0.16) (0.03)
Net realized and unrealized gain (loss)
on investments ........................ 2.16 (4.68) (5.35) 4.45 8.74 3.40
----------- --------- --------- ----------- --------- ---------
Total from Investment Operations ...... 2.10 (4.81) (5.46) 4.35 8.58 3.37
----------- --------- --------- ----------- --------- ---------
LESS DISTRIBUTIONS:
From net investment income ............. -- -- -- -- -- (0.01)
From net realized gains ................ -- -- (0.93) (8.29) (2.27) --(c)
----------- --------- --------- ----------- --------- ---------
Total distributions ................... -- -- (0.93) (8.29) (2.27) (0.01)
----------- --------- --------- ----------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 16.89 $ 14.79 $ 19.60 $ 25.99 $ 29.93 $ 23.62
----------- --------- --------- ----------- --------- ---------
TOTAL RETURN (d) ......................... 14.20%(e) (24.54)% (20.98)% 13.84% 36.33% 16.64%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) . $ 924,965 $ 807,342 $ 786,071 $ 1,095,525 $ 918,322 $ 969,359
Ratioof expenses to average net assets (f) 1.07%(g) 1.12% 1.08% 0.99% 1.09% 1.03%
Ratioof net investment loss to
average net assets (f) .................. (0.77)%(g) (0.85)% (0.49)% (0.38)% (0.64)% (0.09)%
Portfolio turnover rate .................. 66%(e) 88% 186% 169% 135% 135%
(a) On November 1, 2002, the existing Fund shares were redesignated Class Z
shares.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Rounds to less than $0.01 per share.
(d) Total return at net asset value assuming all distributions reinvested.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
See Accompanying Notes to Financial Statements
43
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA SMALL CAP FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED
JUNE 30, YEAR ENDED DECEMBER 31,
CLASS Z SHARES 2003 2002(a) 2001 2000 1999 1998
----------- --------- -------- --------- --------- ---------
NET ASSET VALUE, BEGINNING OF PERIOD $ 16.30 $ 22.20 $ 25.87 $ 27.26 $ 17.43 $ 16.65
----------- --------- -------- --------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss..................... (0.09)(b) (0.17)(b) (0.13) (0.10) (0.14) (0.09)
Net realized and unrealized gain (loss)
on investments......................... 3.53 (5.73) (3.54) 1.75 10.45 0.87
----------- --------- -------- --------- --------- ---------
Total from investment operations 3.44 (5.90) (3.67) 1.65 10.31 0.78
----------- --------- -------- --------- --------- ---------
LESS DISTRIBUTIONS:
From net realized gains................. -- -- -- (3.04) (0.48) --(c)
NET ASSET VALUE, END OF PERIOD $ 19.74 $ 16.30 $ 22.20 $ 25.87 $ 27.26 $ 17.43
----------- --------- -------- --------- --------- ---------
TOTAL RETURN (d).......................... 21.10%(e) (26.58)% (14.19)% 5.85% 59.15% 4.69%
----------- --------- -------- --------- --------- ---------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands).. $ 558,696 $ 493,031 $617,966 $ 518,970 $ 290,374 $ 160,472
Ratio of expenses to average net assets(f) 1.26%(g) 1.24% 1.23% 1.22% 1.30% 1.34%
Ratio of net investment loss to average
net assets (f)........................... (1.07)%(g) (0.90)% (0.71)% (0.44)% (0.84)% (0.68)%
Portfolio turnover rate................... 58%(e) 109% 129% 145% 188% 158%
(a) On November 1, 2002, the existing Fund shares were redesignated Class Z
shares.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Rounds to less than $0.01 per share.
(d) Total return at net asset value assuming all distributions reinvested.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
COLUMBIA REAL ESTATE EQUITY FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
JUNE 30, DECEMBER 31,
CLASS A SHARES 2003 2002(a)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 17.80 $ 17.01
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b).................... 0.29 0.26
Net realized and unrealized gain on
investments ................................ 1.80 0.78
------------ ------------
Total from investment operations............ 2.09 1.04
------------ ------------
LESS DISTRIBUTIONS:
From net investment income................... (0.23) (0.25)
------------ ------------
NET ASSET VALUE, END OF PERIOD $ 19.66 $ 17.80
------------ ------------
TOTAL RETURN (c)(d)............................ 11.78% 6.10%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)....... $ 7,902 $ 905
Ratio of expenses to average net assets (e)(f). 1.65% 1.43%
Ratio of net investment income to average net
assets (e)(f)................................. 3.09% 4.81%
Portfolio turnover rate........................ 28%(d) 53%
(a) Class A shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and no
initial sales charge or contingent deferred sales charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
See Accompanying Notes to Financial Statements
44
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA REAL ESTATE EQUITY FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
JUNE 30, DECEMBER 31,
CLASS B SHARES 2003 2002(a)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 17.82 $ 17.01
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b) ................... 0.20 0.22
Net realized and unrealized gain on
investments ................................ 1.81 0.81
------------ ------------
Total from investment operations ........... 2.01 1.03
------------ ------------
LESS DISTRIBUTIONS:
From net investment income .................. (0.15) (0.22)
------------ ------------
NET ASSET VALUE, END OF PERIOD $ 19.68 $ 17.82
------------ ------------
TOTAL RETURN (c)(d) ........................... 11.34% 6.09%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ...... $ 3,810 $ 1,074
Ratio of expenses to average net assets (e)(f) 2.46% 2.18%
Ratio of net investment income to average net
assets (e)(f) ................................ 2.21% 4.06%
Portfolio turnover rate ....................... 28%(d) 53%
(a) Class B shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
COLUMBIA REAL ESTATE EQUITY FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
JUNE 30, DECEMBER 31,
CLASS D SHARES 2003 2002(a)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 17.82 $ 17.01
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b) ................... 0.22 0.21
Net realized and unrealized gain on
investments ................................ 1.80 0.82
------------ ------------
Total from investment operations ........... 2.02 1.03
------------ ------------
LESS DISTRIBUTIONS:
From net investment income .................. (0.16) (0.22)
------------ ------------
NET ASSET VALUE, END OF PERIOD $ 19.68 $ 17.82
------------ ------------
TOTAL RETURN (c)(d) ........................... 11.35% 6.09%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ...... $ 2,633 $ 365
Ratio of expenses to average net assets (e)(f) 2.41% 2.18%
Ratio of net investment income to average net
assets (e)(f) ................................ 2.41% 4.06%
Portfolio turnover rate ....................... 28%(d) 53%
(a) Class D shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
See Accompanying Notes to Financial Statements
45
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA REAL ESTATE EQUITY FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED
JUNE 30, YEAR ENDED DECEMBER 31,
CLASS Z SHARES 2003 2002(a) 2001 2000 1999 1998
----------- --------- --------- --------- --------- ---------
NET ASSET VALUE, BEGINNING OF PERIOD $ 17.81 $ 18.04 $ 17.89 $ 14.57 $ 15.76 $ 18.80
----------- --------- --------- --------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.................... 0.32(b) 0.82(b) 0.79 0.81 0.82 0.75
Net realized and unrealized gain (loss)
on investments.......................... 1.82 (0.25) 0.15 3.32 (1.19) (3.04)
----------- --------- --------- --------- --------- ---------
Total from investment operations........ 2.14 0.57 0.94 4.13 (0.37) (2.29)
----------- --------- --------- --------- --------- ---------
LESS DISTRIBUTIONS:
From net investment income............... (0.28) (0.71) (0.72) (0.75) (0.71) (0.66)
From net realized gains.................. -- (0.09) (0.07) (0.06) (0.11) (0.09)
----------- --------- --------- --------- --------- ---------
Total distributions..................... (0.28) (0.80) (0.79) (0.81) (0.82) (0.75)
----------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 19.67 $ 17.81 $ 18.04 $ 17.89 $ 14.57 $15.76
----------- --------- --------- --------- --------- ---------
TOTAL RETURN (c)........................... 12.09%(d) 3.12% 5.41% 28.84% (2.45)% (12.33)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)... $ 818,610 $ 774,646 $ 621,590 $ 436,764 $ 241,716 $ 164,172
Ratio of expenses to average net assets (e) 1.06%(f) 0.94% 0.95% 0.96% 0.99% 1.01%
Ratio of net investment income to average
net assets (e)............................ 3.50%(f) 5.30% 4.65% 5.16% 5.66% 4.60%
Portfolio turnover rate.................... 28%(d) 53% 41% 25% 29% 6%
(a) On November 1, 2002, the existing Fund shares were redesignated Class Z
shares.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
See Accompanying Notes to Financial Statements
46
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA TECHNOLOGY FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
JUNE 30, DECEMBER 31,
CLASS A SHARES 2003 2002(a)
----------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 3.79 $ 3.82
----------- ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b) .................... (0.03) (0.01)
Net realized and unrealized gain (loss)
on investments ............................ 1.23 (0.02)
----------- ------------
Total from investment operations .......... 1.20 (0.03)
----------- ------------
NET ASSET VALUE, END OF PERIOD $ 4.99 $ 3.79
----------- ------------
TOTAL RETURN (c)(d)(e) ....................... 31.66% (0.79)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ..... $ 256 $ 1
Ratio of expenses to average net assets (f)(g) 1.90% 1.76%
Ratio of net investment loss to average
net assets (f)(g) ........................... (1.46)% (1.35)%
Waiver/reimbursement (g) ..................... 2.75% 1.24%
Portfolio turnover rate ...................... 431%(e) 512%
(a) Class A shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming no initial sales charge or
contingent deferred sales charge.
(d) Had the Advisor not waived or reimbursed a portion of expenses, total return
would have been reduced.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
COLUMBIA TECHNOLOGY FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
JUNE 30, DECEMBER 31,
CLASS B SHARES 2003 2002(a)
----------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 3.78 $ 3.82
----------- ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b) ...................... (0.06) (0.01)
Net realized and unrealized gain (loss)
on investments............................... 1.23 (0.03)
----------- ------------
Total from investment operations 1.17 (0.04)
----------- ------------
NET ASSET VALUE, END OF PERIOD ................. $ 4.95 $ 3.78
----------- ------------
TOTAL RETURN (c)(d)(e) ......................... 30.95% (1.05)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ....... $ 996 $ 7
Ratio of expenses to average net assets (f)(g) . 2.65% 2.51%
Ratio of net investment loss to average net
assets (f)(g) ................................. (2.39)% (2.10)%
Waiver/reimbursement (g) ....................... 3.70% 1.24%
Portfolio turnover rate ........................ 431%(e) 512%
(a) Class B shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming no contingent deferred sales
charge.
(d) Had the Advisor not waived or reimbursed a portion of expenses, total return
would have been reduced.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
See Accompanying Notes to Financial Statements
47
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA TECHNOLOGY FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
JUNE 30, DECEMBER 31,
CLASS D SHARES 2003 2002(a)
----------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 3.78 $ 3.82
----------- ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b) ...................... (0.05) (0.01)
Net realized and unrealized gain (loss)
on investments .............................. 1.25 (0.03)
----------- ------------
Total from investment operations ............ 1.20 (0.04)
----------- ------------
NET ASSET VALUE, END OF PERIOD $ 4.98 $ 3.78
----------- ------------
TOTAL RETURN (c)(d)(e) ......................... 31.75% (1.05)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ....... $ 10 $ 1
Ratio of expenses to average net assets (f)(g) . 2.65% 2.51%
Ratio of net investment loss to average
net assets (f)(g) ............................. (2.17)% (2.10)%
Waiver/reimbursement (g) ....................... 3.32% 1.24%
Portfolio turnover rate ........................ 431%(e) 512%
(a) Class D shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming no initial sales charge or
contingent deferred sales charge.
(d) Had the Advisor not waived or reimbursed a portion of expenses, total return
would have been reduced.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
COLUMBIA TECHNOLOGY FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
JUNE 30, DECEMBER 31, DECEMBER 31,
CLASS Z SHARES 2003 2002(a) 2001 2000(b)
----------- --------- -------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 3.79 $ 6.13 $ 8.63 $ 10.00
----------- --------- -------- ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)............. (0.03)(c) (0.06)(c) (0.08) 0.01
Net realized and unrealized gain (loss)
on investments ......................... 1.25 (2.28) (2.42) (1.37)
----------- --------- -------- ------------
Total from investment operations........ 1.22 (2.34) (2.50) (1.36)
----------- --------- -------- ------------
LESS DISTRIBUTIONS:
From net investment income............... -- -- -- (0.01)
----------- --------- -------- ------------
NET ASSET VALUE, END OF PERIOD $ 5.01 $ 3.79 $ 6.13 $ 8.63
----------- --------- -------- ------------
TOTAL RETURN (d)(e)........................ 32.19%(f) (38.17)% (28.97)% (13.78)%(f)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)... $ 13,443 $ 8,055 $ 10,385 $ 4,327
Ratio of expenses to average net assets (g) 1.65%(h) 1.65% 1.69% 1.48%(h)
Ratio of net investment income (loss) to
average net assets (g).................... (1.29)%(h) (1.24)% (1.26)% 0.99%(h)
Waiver/reimbursement ...................... 2.16%(h) 1.33% 1.13% 7.49%(h)
Portfolio turnover rate.................... 431%(f) 512% 413% 63%(f)
(a) On November 1, 2002, the existing Fund shares were redesignated Class Z
shares.
(b) The Fund commenced investment operations on October 27, 2000. Per share
data, total return and portfolio turnover rate reflect activity from that
date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Had the Advisor not waived or reimbursed a portion of expenses, total return
would have been reduced.
(e) Total return at net asset value assuming all distributions reinvested.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
See Accompanying Notes to Financial Statements
48
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA STRATEGIC VALUE FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
JUNE 30, DECEMBER 31,
CLASS A SHARES 2003 2002(a)
----------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.13 $ 12.72
----------- ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b)................... 0.05 0.01
Net realized and unrealized gain on
investments and foreign currency........... 1.74 0.40
----------- ------------
Total from investment operations........... 1.79 0.41
----------- ------------
NET ASSET VALUE, END OF PERIOD $ 14.92 $ 13.13
----------- ------------
TOTAL RETURN (c)(d)........................... 13.63% 3.22%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)...... $ 56,754 $ 53,526
Ratio of expenses to average net assets (e)(f) 1.22% 1.21%
Ratio of net investment income to average net
assets (e)(f)................................ 0.81% 0.64%
Portfolio turnover rate ...................... 48%(d) 188%
(a) Class A shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming no initial sales charge or
contingent deferred sales charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
COLUMBIA STRATEGIC VALUE FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
JUNE 30, DECEMBER 31,
CLASS B SHARES 2003 2002(a)
----------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.10 $ 12.72
----------- ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b)..................... (0.01) (0.01)
Net realized and unrealized gain on
investments and foreign currency........... 1.73 0.39
----------- ------------
Total from investment operations........... 1.72 0.38
----------- ------------
NET ASSET VALUE, END OF PERIOD $ 14.82 $ 13.10
----------- ------------
TOTAL RETURN (c)(d)........................... 13.13% 2.99%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)...... $ 2,876 $ 2,350
Ratio of expenses to average net assets (e)(f) 2.15% 2.36%
Ratio of net investment loss to average
net assets (e)(f)............................ (0.12)% (0.51)%
Portfolio turnover rate ...................... 48%(d) 188%
(a) Class B shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming no contingent deferred sales
charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
See Accompanying Notes to Financial Statements
49
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA STRATEGIC VALUE FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
JUNE 30, DECEMBER 31,
CLASS D SHARES 2003 2002(a)
----------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.11 $ 12.72
----------- ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b)..................... (0.01) (0.01)
Net realized and unrealized gain on
investments and foreign currency........... 1.71 0.40
----------- ------------
Total from investment operations........... 1.70 0.39
----------- ------------
NET ASSET VALUE, END OF PERIOD $ 14.81 $ 13.11
----------- ------------
TOTAL RETURN (c)(d)........................... 12.97% 3.07%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)...... $ 696 $ 355
Ratio of expenses to average net assets(e)(f) 2.24% 2.28%
Ratio of net investment loss to average net
assets (e)(f)................................ (0.21)% (0.43)%
Portfolio turnover rate....................... 48%(d) 188%
(a) Class D shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming no initial sales charge or
contingent deferred sales charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
See Accompanying Notes to Financial Statements
50
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA STRATEGIC VALUE FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
JUNE 30, DECEMBER 31, DECEMBER 31,
CLASS Z SHARES 2003 2002(a) 2001 2000(b)
----------- --------- --------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.14 $ 14.52 $ 11.23 $ 10.00
----------- --------- --------- ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income....................... 0.07(c) 0.10(c) 0.05 0.02
Net realized and unrealized gain (loss)
on investments and foreign currency........ 1.73 (1.35) 3.29 1.23
----------- --------- --------- ------------
Total from investment operations........... 1.80 (1.25) 3.34 1.25
----------- --------- --------- ------------
LESS DISTRIBUTIONS:
From net investment income.................. -- (0.11) (0.05) (0.02)
From net realized gains..................... -- (0.02) -- --
----------- --------- --------- ------------
Total distributions........................ -- (0.13) (0.05) (0.02)
----------- --------- --------- ------------
NET ASSET VALUE, END OF PERIOD $ 14.94 $ 13.14 $ 14.52 $ 11.23
----------- --------- --------- ------------
TOTAL RETURN (d).............................. 13.70%(e) (8.56)% 29.76% 12.25%(e)(f)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)...... $ 204,875 $ 209,610 $ 139,504 $ 9,526
Ratio of expenses to average net assets (g)... 1.00%(h) 1.23% 1.13% 1.34%(h)
Ratio of net investment income to
average net assets (g)....................... 1.02%(h) 0.62% 0.71% 1.92%(h)
Waiver/reimbursement.......................... -- -- -- 3.97%(h)
Portfolio turnover rate....................... 48%(e) 188% 278% 64%(e)
(a) On November 1, 2002, the existing Fund shares were redesignated Class Z
shares.
(b) The Fund commenced investment operations on October 27, 2000. Per share
data, total return and portfolio turnover rate reflect activity from that
date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Total return at net asset value assuming all distributions reinvested.
(e) Not annualized.
(f) Had the Advisor not waived or reimbursed a portion of expenses, total return
would have been reduced.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
See Accompanying Notes to Financial Statements
51
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA BALANCED FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
JUNE 30, DECEMBER 31,
CLASS A SHARES 2003 2002(a)
----------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 17.52 $ 17.58
----------- ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b)................... 0.14 0.03
Net realized and unrealized gain (loss) on
investments................................ 1.20 --(c)
----------- ------------
Total from investment operations........... 1.34 0.03
----------- ------------
LESS DISTRIBUTIONS:
From net investment income.................. (0.14) (0.09)
----------- ------------
NET ASSET VALUE, END OF PERIOD................ $ 18.72 $ 17.52
----------- ------------
TOTAL RETURN (d)(e)........................... 7.71% 0.19%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)...... $ 420 $ 146
Ratio of expenses to average net assets (f)(g) 1.38% 1.17%
Ratio of net investment income to average net
assets (f)(g)................................ 1.53% 2.03%
Portfolio turnover rate....................... 87%(e) 98%
(a) Class A shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Rounds to less than $0.01 per share.
(d) Total return at net asset value assuming all distributions reinvested and no
initial sales charge or contingent deferred sales charge.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
COLUMBIA BALANCED FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
JUNE 30, DECEMBER 31,
CLASS B SHARES 2003 2002(a)
----------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 17.52 $ 17.58
----------- ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b)................... 0.07 0.02
Net realized and unrealized gain (loss) on
investments................................ 1.21 (0.01)
----------- ------------
Total from investment operations........... 1.28 0.01
----------- ------------
LESS DISTRIBUTIONS:
From net investment income.................... (0.08) (0.07)
----------- ------------
NET ASSET VALUE, END OF PERIOD $ 18.72 $ 17.52
----------- ------------
TOTAL RETURN (c)(d)........................... 7.31% 0.06%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)...... $ 2,608 $ 608
Ratio of expenses to average net assets (e)(f) 2.13% 1.92%
Ratio of net investment income to average net
assets (e)(f)............................... 0.78% 1.28%
Portfolio turnover rate....................... 87%(d) 98%
(a) Class B shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
See Accompanying Notes to Financial Statements
52
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA BALANCED FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
JUNE 30, DECEMBER 31,
CLASS D SHARES 2003 2002(a)
----------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 17.51 $ 17.58
----------- ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b)................... 0.10 0.02
Net realized and unrealized gain (loss) on
investments................................ 1.20 (0.02)
----------- ------------
Total from investment operations........... 1.30 --
----------- ------------
LESS DISTRIBUTIONS:
From net investment income.................. (0.09) (0.07)
----------- ------------
NET ASSET VALUE, END OF PERIOD $ 18.72 $ 17.51
----------- ------------
TOTAL RETURN (c)(d)........................... 7.43% 0.01%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)...... $ 674 $ 446
Ratio of expenses to average net assets (e)(f) 1.85% 1.92%
Ratio of net investment income to average net
assets (e)(f)................................ 1.06% 1.28%
Portfolio turnover rate....................... 87%(d) 98%
(a) Class D shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and no
initial sales charge or contingent deferred sales charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
See Accompanying Notes to Financial Statements
53
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA BALANCED FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED
JUNE 30, YEAR ENDED DECEMBER 31,
CLASS Z SHARES 2003 2002(a) 2001 2000 1999 1998
----------- --------- --------- ----------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 17.51 $ 20.67 $ 22.96 $ 24.72 $ 23.17 $ 21.42
----------- --------- --------- ----------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income....................... 0.20(b) 0.47(b) 0.57(c) 0.67 0.69 0.72
Net realized and unrealized gain (loss)
on investments ............................ 1.20 (3.13) (2.27)(c) (0.41) 2.21 3.52
----------- --------- --------- ----------- ---------- ----------
Total from investment operations........... 1.40 (2.66) (1.70) 0.26 2.90 4.24
----------- --------- --------- ----------- ---------- ----------
LESS DISTRIBUTIONS:
From net investment income.................. (0.20) (0.50) (0.59) (0.68) (0.69) (0.73)
From net realized gains..................... -- -- -- (1.34) (0.66) (1.76)
----------- --------- --------- ----------- ---------- ----------
Total distributions........................ (0.20) (0.50) (0.59) (2.02) (1.35) (2.49)
----------- --------- --------- ----------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 18.71 $ 17.51 $ 20.67 $ 22.96 $ 24.72 $ 23.17
----------- --------- --------- ----------- ---------- ----------
TOTAL RETURN (d).............................. 8.04%(e) (12.97)% (7.40)% 0.82% 12.70% 20.07%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)...... $ 643,575 $ 668,290 $ 983,749 $ 1,126,854 $1,040,940 $ 975,381
Ratio of expenses to average net assets (f)... 0.71%(g) 0.70% 0.67% 0.65% 0.66% 0.67%
Ratio of net investment income to average
net assets (f)............................... 2.20%(g) 2.50% 2.70%(c) 2.73% 2.85% 3.22%
Portfolio turnover rate....................... 87%(e) 98% 111% 105% 133% 128%
(a) On November 1, 2002, the existing Fund shares were redesignated Class Z
shares.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Effective January 1, 2001, the Fund adopted the provisions of the AICPA
Audit and Accounting Guide for Investment Companies and began amortizing
premium and accreting discount on all debt securities. The effect of this
change for the year ended December 31, 2001, was to decrease net investment
income per share by $0.01, decrease net realized and unrealized loss per
share by $0.01 and decrease the ratio of net investment income to average
net assets from 2.73% to 2.70%. Per share data and ratios for periods prior
to December 31, 2001 have not been restated to reflect this change in
presentation.
(d) Total return at net asset value assuming all distributions reinvested.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
See Accompanying Notes to Financial Statements
54
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA SHORT TERM BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
JUNE 30, DECEMBER 31,
CLASS A SHARES 2003 2002(a)
------------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 8.67 $ 8.63
------------- ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b) ...................... 0.10 0.04
Net realized and unrealized gain on investments. 0.09 0.04
------------- ------------
Total from investment operations .............. 0.19 0.08
------------- ------------
LESS DISTRIBUTIONS:
From net investment income ..................... (0.10) (0.04)
------------- ------------
NET ASSET VALUE, END OF PERIOD $ 8.76 $ 8.67
------------- ------------
TOTAL RETURN (c)(d) .............................. 2.20% 0.94%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ......... $ 37,617 $ 5,543
Ratio of expenses to average net assets (e)(f).... 0.96% 1.00%
Ratio of net investment income to average net
assets (e)(f) .................................... 2.21% 3.53%
Portfolio turnover rate .......................... 98%(d) 182%
(a) Class A shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
See Accompanying Notes to Financial Statements
55
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA SHORT TERM BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
JUNE 30, DECEMBER 31,
CLASS B SHARES 2003 2002(a)
------------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 8.67 $ 8.63
------------- ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b) ..................... 0.06 0.03
Net realized and unrealized gain on investments 0.10 0.04
------------- ------------
Total from investment operations .............. 0.16 0.07
------------- ------------
LESS DISTRIBUTIONS:
From net investment income ..................... (0.07) (0.03)
------------- ------------
NET ASSET VALUE, END OF PERIOD $ 8.76 $ 8.67
------------- ------------
TOTAL RETURN (c)(d) .............................. 1.85% 0.77%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ......... $ 26,524 $ 6,261
Ratio of expenses to average net assets (e)(f) 1.75% 1.75%
Ratio of net investment income to average net
assets (e)(f) .................................... 1.42% 2.78%
Portfolio turnover rate .......................... 98%(d) 182%
(a) Class B shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
See Accompanying Notes to Financial Statements
56
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA SHORT TERM BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
JUNE 30, DECEMBER 31,
CLASS D SHARES 2003 2002(a)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 8.67 $ 8.63
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b) ..................... 0.09 0.04
Net realized and unrealized gain on investments 0.09 0.04
------------ ------------
Total from investment operations ............ 0.18 0.08
------------ ------------
LESS DISTRIBUTIONS:
From net investment income .................... (0.09) (0.04)
------------ ------------
NET ASSET VALUE, END OF PERIOD $ 8.76 $ 8.67
------------ ------------
TOTAL RETURN (c)(d)(e) .......................... 2.13% 0.88%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ........ $ 17,379 $ 5,223
Ratio of expenses to average net assets (f)(g) .. 1.15% 1.15%
Ratio of net investment income to average net
assets (f)(g) ................................... 2.02% 3.38%
Waiver/reimbursement (g) ........................ 0.60% 0.64%
Portfolio turnover rate ......................... 98%(e) 182%
(a) Class D shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions
reinvested and no initial sales charge or contingent deferred sales charge.
(d) Had the Distributor not waived or reimbursed a portion of expenses, total
return would have been reduced.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
See Accompanying Notes to Financial Statements
57
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA SHORT TERM BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
JUNE 30, DECEMBER 31,
CLASS G SHARES 2003 2002(a)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 8.67 $ 8.63
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b) ..................... 0.07 0.03
Net realized and unrealized gain on investments 0.10 0.04
------------ ------------
Total from investment operations ............ 0.17 0.07
------------ ------------
LESS DISTRIBUTIONS:
From net investment income .................... (0.08) (0.03)
------------ ------------
NET ASSET VALUE, END OF PERIOD $ 8.76 $ 8.67
------------ ------------
TOTAL RETURN (c)(d) ............................. 1.94% 0.85%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ........ $ 1,751 $ 1,874
Ratio of expenses to average net assets (e)(f) 1.53% 1.55%
Ratio of net investment income to average net
assets (e)(f) ................................... 1.64% 2.98%
Portfolio turnover rate ......................... 98%(d) 182%
(a) Class G shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
See Accompanying Notes to Financial Statements
58
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA SHORT TERM BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
JUNE 30, DECEMBER 31,
CLASS T SHARES 2003 2002(a)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 8.67 $ 8.63
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b) ..................... 0.10 0.04
Net realized and unrealized gain on investments 0.10 0.04
------------ ------------
Total from investment operations ............ 0.20 0.08
------------ ------------
LESS DISTRIBUTIONS:
From net investment income .................... (0.11) (0.04)
------------ ------------
NET ASSET VALUE, END OF PERIOD $ 8.76 $ 8.67
------------ ------------
TOTAL RETURN (c)(d) ............................. 2.30% 0.95%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ........ $ 29,250 $ 30,859
Ratio of expenses to average net assets
(e)(f) .......................................... 0.83% 0.90%
Ratio of net investment income to average net
assets (e)(f) ................................... 2.34% 3.63%
Portfolio turnover rate ......................... 98%(d) 204%
(a) Class T shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
See Accompanying Notes to Financial Statements
59
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA SHORT TERM BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED
JUNE 30, YEAR ENDED DECEMBER 31,
CLASS Z SHARES 2003 2002(a) 2001 2000 1999 1998
----------- ----------- ----------- ----------- ---------- ----------
NET ASSET VALUE,
BEGINNING OF PERIOD $ 8.67 $ 8.55 $ 8.36 $ 8.20 $ 8.39 $ 8.29
----------- ----------- ----------- ----------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ....... 0.11(b) 0.32(b) 0.46(c) 0.42 0.33 0.38
Net realized and unrealized
gain (loss) on investments . 0.10 0.14 0.21(c) 0.16 (0.18) 0.14
----------- ----------- ----------- ----------- ---------- ----------
Total from investment
operations ............... 0.21 0.46 0.67 0.58 0.15 0.52
----------- ----------- ----------- ----------- ---------- ----------
LESS DISTRIBUTIONS:
From net investment income .. (0.12) (0.34) (0.46) (0.42) (0.33) (0.38)
From net realized gains ..... -- --(d) (0.02) -- (0.01) (0.04)
----------- ----------- ----------- ----------- ---------- ----------
Total distributions ....... (0.12) (0.34) (0.48) (0.42) (0.34) (0.42)
----------- ----------- ----------- ----------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $ 8.76 $ 8.67 $ 8.55 $ 8.36 $ 8.20 $ 8.39
----------- ----------- ----------- ----------- ---------- ----------
TOTAL RETURN (e) ............. 2.40%(f) 5.56% 8.07%(g) 7.26%(g) 1.80% 6.43%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) .............. $ 444,399 $ 317,588 $ 62,930 $ 35,856$ 38,072 $ 40,578
Ratio of expenses to average
net assets (h) .............. 0.62%(i) 0.67% 0.75% 0.88% 0.91% 0.89%
Ratio of net investment income
to average net assets (h) ... 2.55%(i) 3.86% 5.29%(c) 5.09% 4.09% 4.55%
Waiver/reimbursement ......... --% --% 0.16% 0.02% --% --%
Portfolio turnover rate ...... 98%(f) 182% 137% 147% 211% 182%
(a) On November 1, 2002, the existing Fund shares were redesignated Class Z
shares.
(b) Per share data was calculated using average shares outstanding during
the period.
(c) Effective January 1, 2001, the Fund adopted the provisions of the AICPA
Audit and Accounting Guide for Investment Companies and began amortizing
premium and accreting discount on all debt securities. The effect of this
change for the year ended December 31, 2001, was to increase the ratio of
net investment income to average net assets from 5.26% to 5.29%. The impact
to net investment income and net realized and unrealized gain per share was
less than $0.01. Per share data and ratios for periods prior to December 31,
2001 have not been restated to reflect this change in presentation.
(d) Rounds to less than $0.01 per share.
(e) Total return at net asset value assuming all distributions reinvested.
(f) Not annualized.
(g) Had the Advisor not waived or reimbursed a portion of expenses, total return
would have been reduced.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
See Accompanying Notes to Financial Statements
60
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA FIXED INCOME SECURITIES FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
JUNE 30, DECEMBER 31,
CLASS A SHARES 2003 2002(a)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.52 $ 13.42
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b) ................... 0.21 0.11
Net realized and unrealized gain on investments 0.26 0.08
------------ ------------
Total from investment operations .......... 0.47 0.19
------------ ------------
LESS DISTRIBUTIONS:
From net investment income .................. (0.23) (0.09)
------------ ------------
NET ASSET VALUE, END OF PERIOD $ 13.76 $ 13.52
------------ ------------
TOTAL RETURN (c)(d) ........................... 3.51% 1.41%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ...... $ 6,189 $ 945
Ratio of expenses to average net assets (e)(f) 1.36% 0.92%
Ratio of net investment income to average net
assets (e)(f) ................................. 3.10% 4.78%
Portfolio turnover rate ....................... 122%(d) 103%
(a) Class A shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
COLUMBIA FIXED INCOME SECURITIES FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
JUNE 30, DECEMBER 31,
CLASS B SHARES 2003 2002(a)
----------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.52 $ 13.42
----------- ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b) ...................... 0.16 0.09
Net realized and unrealized gain on investments 0.26 0.08
----------- ------------
Total from investment operations ............. 0.42 0.17
----------- ------------
LESS DISTRIBUTIONS:
From net investment income ..................... (0.18) (0.07)
----------- ------------
NET ASSET VALUE, END OF PERIOD $ 13.76 $ 13.52
----------- ------------
TOTAL RETURN (c)(d) .............................. 3.13% 1.27%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ......... $ 4,339 $ 1,466
Ratio of expenses to average net assets (e)(f) ... 2.03% 1.71%
Ratio of net investment income to average
net assets(e)(f) ................................. 2.41% 3.99%
Portfolio turnover rate .......................... 122%(d) 103%
(a) Class A shares were initially offered on November 1, 2002. Per sha re data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
See Accompanying Notes to Financial Statements
61
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA FIXED INCOME SECURITIES FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
JUNE 30, DECEMBER 31,
CLASS D SHARES 2003 2002(a)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.52 $ 13.42
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b) ..................... 0.18 0.09
Net realized and unrealized gain on investments 0.26 0.08
------------ ------------
Total from investment operations ............ 0.44 0.17
------------ ------------
LESS DISTRIBUTIONS:
From net investment income .................... (0.20) (0.07)
------------ ------------
NET ASSET VALUE, END OF PERIOD $ 13.76 $ 13.52
------------ ------------
TOTAL RETURN (c)(d)(e) .......................... 3.25% 1.30%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ........ $ 2,855 $ 427
Ratio of expenses to average net assets (f)(g) .. 1.72% 1.58%
Ratio of net investment income to average
net assets (f)(g) 2.62% 4.12%
Waiver/reimbursement (g) ........................ 0.15% 0.15%
Portfolio turnover rate ......................... 122%(e) 103%
(a) Class D shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and no
initial sales charge or contingent deferred sales charge.
(d) Had the Distributor not waived or reimbursed a portion of expenses, total
return would have been reduced.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
See Accompanying Notes to Financial Statements
62
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA FIXED INCOME SECURITIES FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS ENDED
JUNE 30, YEAR ENDED DECEMBER 31,
CLASS Z SHARES 2003 2002(a) 2001 2000 1999 1998
----------- ---------- ---------- ----------- ---------- -----------
NET ASSET VALUE,
BEGINNING OF PERIOD $ 13.52 $ 13.22 $ 12.97 $ 12.44 $ 13.42 $ 13.41
----------- ---------- ---------- ----------- ---------- -----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ........ 0.26(b) 0.67(b) 0.77(c) 0.82 0.78 0.83
Net realized and unrealized
gain (loss) on investments .. 0.25 0.31 0.26(c) 0.53 (0.98) 0.14
----------- ---------- ---------- ----------- ---------- -----------
Total from investment
operations ................ 0.51 0.98 1.03 1.35 (0.20) 0.97
----------- ---------- ---------- ----------- ---------- -----------
LESS DISTRIBUTIONS:
From net investment
income ..................... (0.27) (0.68) (0.78) (0.82) (0.78) (0.83)
From net realized gains ...... -- -- -- -- --(d) (0.13)
----------- ---------- ---------- ----------- ---------- -----------
Total distributions ........ (0.27) (0.68) (0.78) (0.82) (0.78) (0.96)
----------- ---------- ---------- ----------- ---------- -----------
NET ASSET VALUE, END OF
PERIOD $ 13.76 $ 13.52 $ 13.22 $ 12.97 $ 12.44 $ 13.42
----------- ---------- ---------- ----------- ---------- -----------
TOTAL RETURN (e) ............. 3.83%(f) 7.65% 8.13% 11.27% (1.50)% 7.44%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) .............. $ 558,498 $ 547,524 $ 465,743 $ 378,799 $ 397,147 $422,330
Ratio of expenses to average
net assets (g) .............. 0.69%(h) 0.67% 0.66% 0.66% 0.64% 0.65%
Ratio of net investment income
to average net assets (g) ... 3.84%(h) 5.03% 5.83%(c) 6.53% 6.03% 6.15%
Portfolio turnover rate ...... 122%(f) 103% 110% 105% 155% 107%
(a) On November 1, 2002, the existing Fund shares were redesignated Class Z
shares.
(b) Per share data was calculated using average shares outstanding during
the period.
(c) Effective January 1, 2001, the Fund adopted the provisions of the AICPA
Audit and Accounting Guide for Investment Companies and began amortizing
premium and accreting discount on all debt securities. The effect of this
change for the year ended December 31, 2001, was to decrease net investment
income per share by $0.01, increase net realized and unrealized gain per
share by $0.01 and decrease the ratio of net investment income to average
net assets from 5.92% to 5.83%. Per share data and ratios for periods prior
to December 31, 2001 have not been restated to reflect this change in
presentation.
(d) Rounds to less than $0.01 per share.
(e) Total return at net asset value assuming all distributions
reinvested.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
See Accompanying Notes to Financial Statements
63
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA NATIONAL MUNICIPAL BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
JUNE 30, DECEMBER 31,
CLASS A SHARES 2003 2002(a)
---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.28 $ 10.22
---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b) ................... 0.18 0.06
Net realized and unrealized gain
on investments ............................. 0.20 0.10
---------- ----------
Total from investment operations ........... 0.38 0.16
---------- ----------
LESS DISTRIBUTIONS:
From net investment income .................. (0.17) (0.06)
From net realized gains ..................... -- (0.04)
---------- ----------
Total distributions ........................ (0.17) (0.10)
---------- ----------
NET ASSET VALUE, END OF PERIOD $ 10.49 $ 10.28
---------- ----------
TOTAL RETURN (c)(d)(e) ........................ 3.73% 1.59%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ............. $ 380 $ 67
Ratio of expenses to average net assets (f)(g) 0.90% 0.90%
Ratio of net investment income to
average net assets (f)(g) ..................... 3.44% 3.85%
Waiver/reimbursement (g) ...................... 1.84% 0.56%
Portfolio turnover rate ....................... 8%(e) 43%
(a) Class A shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(d) Had the Advisor not waived or reimbursed a portion of expenses, total return
would have been reduced.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
See Accompanying Notes to Financial Statements
64
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA NATIONAL MUNICIPAL BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
JUNE 30, DECEMBER 31,
CLASS B SHARES 2003 2002(a)
---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.28 $ 10.22
---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b) ..................... 0.14 0.05
Net realized and unrealized gain
on investments ............................... 0.20 0.10
---------- ----------
Total from investment operations ............. 0.34 0.15
---------- ----------
LESS DISTRIBUTIONS:
From net investment income .................... (0.13) (0.05)
From net realized gains ....................... -- (0.04)
---------- ----------
Total distributions .......................... (0.13) (0.09)
---------- ----------
NET ASSET VALUE, END OF PERIOD $ 10.49 $ 10.28
---------- ----------
TOTAL RETURN (c)(d)(e) ........................ 3.35% 1.47%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ............. $ 592 $ 72
Ratio of expenses to average
net assets (f)(g) ............................ 1.65% 1.65%
Ratio of net investment income to
average net assets (f)(g) .................... 2.72% 3.10%
Waiver/reimbursement (g) ...................... 1.98% 0.56%
Portfolio turnover rate ....................... 8%(e) 43%
(a) Class B shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(d) Had the Advisor not waived or reimbursed a portion of expenses, total return
would have been reduced.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
See Accompanying Notes to Financial Statements
65
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA NATIONAL MUNICIPAL BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
JUNE 30, DECEMBER 31,
CLASS D SHARES 2003 2002(a)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.28 $ 10.22
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b) ..................... 0.15 0.05
Net realized and unrealized gain
on investments ............................... 0.21 0.10
------------ ------------
Total from investment operations .............. 0.36 0.15
------------ ------------
LESS DISTRIBUTIONS:
From net investment income .................... (0.15) (0.05)
From net realized gains ....................... -- (0.04)
------------ ------------
Total distributions .......................... (0.15) (0.09)
------------ ------------
NET ASSET VALUE, END OF PERIOD $ 10.49 $ 10.28
------------ ------------
TOTAL RETURN (c)(d)(e) ........................ 3.53% 1.51%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ............. $ 403 $ 50
Ratio of expenses to average net
assets (f)(g) ................................ 1.35% 1.30%
Ratio of net investment income to
average net assets (f)(g) .................... 2.93% 3.45%
Waiver/reimbursement (g) ...................... 2.15% 0.91%
Portfolio turnover rate ....................... 8%(e) 43%
(a) Class D shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and no
initial sales charge or contingent deferred sales charge.
(d) Had the Advisor and Distributor not waived or reimbursed a portion of
expenses, total return would have been reduced.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
See Accompanying Notes to Financial Statements
66
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA NATIONAL MUNICIPAL BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED
JUNE 30, PERIOD ENDED
YEAR ENDED DECEMBER 31, DECEMBER 31,
CLASS Z SHARES 2003 2002(a) 2001 2000 1999(b)
---------- ---------- ----------- ---------- -----------
NET ASSET VALUE, BEGINNING
OF PERIOD $ 10.28 $ 9.77 $ 9.82 $ 9.28 $ 10.00
---------- ---------- ----------- ---------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ........................ 0.20(c) 0.41(c) 0.44(d) 0.44 0.34
Net realized and unrealized gain (loss) on
investments ................................. 0.20 0.55 (0.03)(d) 0.54 (0.72)
---------- ---------- ----------- ---------- -----------
Total from investment operations ............ 0.40 0.96 0.41 0.98 (0.38)
---------- ---------- ----------- ---------- -----------
LESS DISTRIBUTIONS:
From net investment income ................... (0.19) (0.41) (0.44) (0.44) (0.34)
From net realized gains ...................... -- (0.04) (0.02) -- --
---------- ---------- ----------- ---------- -----------
Total distributions ......................... (0.19) (0.45) (0.46) (0.44) (0.34)
---------- ---------- ----------- ---------- -----------
NET ASSET VALUE, END OF PERIOD $ 10.49 $ 10.28 $ 9.77 $ 9.82 $ 9.28
---------- ---------- ----------- ---------- -----------
TOTAL RETURN (e)(f) ........................... 3.98%(g) 10.04% 4.16% 10.87% (3.93)%(g)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ............. $ 15,793 $ 16,470 $ 13,769 $ 10,898 $ 10,135
Ratioof expenses to average net assets (h) .... 0.65%(i) 0.65% 0.65% 0.65% 0.65%(i)
Ratioof net investment income to
average net assets (h) 3.85%(i) 4.10% 4.44%(d) 4.68% 4.21%(i)
Waiver/reimbursement .......................... 1.16%(i) 0.50% 0.66% 0.64% 1.07%(i)
Portfolio turnover rate ....................... 8%(g) 43% 20% 21% 12%(g)
(a) On November 1, 2002, the existing Fund shares were redesignated Class Z
shares.
(b) The Fund commenced investment operations on February 10, 1999. Per share
data, total return and portfolio turnover rate reflect activity from that
date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Effective January 1, 2001, the Fund adopted the provisions of the AICPA
Audit and Accounting Guide for Investment Companies and began amortizing
premium and accreting discount on all debt securities. The effect of this
change for the year ended December 31, 2001, was to decrease the ratio of
net investment income to average net assets from 4.47% to 4.44%. The impact
to net investment income and net realized and unrealized loss per share was
less than $0.01. Per share data and ratios for periods prior to December 31,
2001 have not been restated to reflect this change in presentation.
(e) Total return at net asset value assuming all distributions reinvested.
(f) Had the Advisor not waived or reimbursed a portion of expenses, total return
would have been reduced. (g) Not annualized. (h)The benefits derived from
custody credits and directed brokerage arrangements, if applicable, had an
impact of less than 0.01%.
(i) Annualized.
See Accompanying Notes to Financial Statements
67
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA OREGON MUNICIPAL BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
JUNE 30, DECEMBER 31,
CLASS A SHARES 2003 2002(a)
---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.50 $ 12.52
---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b) .................... 0.23 0.08
Net realized and unrealized gain on
investments ................................. 0.22 0.07
---------- ----------
Total from investment operations ............ 0.45 0.15
---------- ----------
LESS DISTRIBUTIONS:
From net investment income ................... (0.24) (0.08)
From net realized gains ...................... -- (0.09)
---------- ----------
Total distributions ......................... (0.24) (0.17)
---------- ----------
NET ASSET VALUE, END OF PERIOD $ 12.71 $ 12.50
---------- ----------
TOTAL RETURN (c)(d) ........................... 3.62% 1.19%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ...... $ 1,457 $ 477
Ratio of expenses to average
net assets (e)(f) ............................. 1.00% 0.92%
Ratio of net investment income to
average net assets (e)(f) ..................... 3.68% 4.11%
Portfolio turnover rate ....................... 7%(d) 21%
(a) Class A shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and no
initial sales charge or contingent deferred sales charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
See Accompanying Notes to Financial Statements
68
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA OREGON MUNICIPAL BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
JUNE 30, DECEMBER 31,
CLASS B SHARES 2003 2002(a)
---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.50 $ 12.52
---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b) ............. 0.19 0.06
Net realized and unrealized gain on
investments .......................... 0.21 0.08
---------- ----------
Total from investment operations ..... 0.40 0.14
---------- ----------
LESS DISTRIBUTIONS:
From net investment income ............ (0.19) (0.07)
From net realized gains ............... -- (0.09)
---------- ----------
Total distributions .................. (0.19) (0.16)
---------- ----------
NET ASSET VALUE, END OF PERIOD $ 12.71 $ 12.50
---------- ----------
TOTAL RETURN (c)(d) .................... 3.23% 1.10%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 898 $ 373
Ratio of expenses to average
net assets (e)(f) ..................... 1.76% 1.67%
Ratio of net investment income to
average net assets (e)(f).............. 2.99% 3.36%
Portfolio turnover rate ................ 7%(d) 21%
(a) Class B shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
See Accompanying Notes to Financial Statements
69
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA OREGON MUNICIPAL BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
JUNE 30, DECEMBER 31,
CLASS D SHARES 2003 2002(a)
---------- ---------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.50 $ 12.52
---------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b) .............. 0.21 0.07
Net realized and unrealized gain
on investments ........................ 0.22 0.07
---------- ---------
Total from investment operations ...... 0.43 0.14
---------- ---------
LESS DISTRIBUTIONS:
From net investment income ............. (0.22) (0.07)
From net realized gains ................ -- (0.09)
---------- ---------
Total distributions ................... (0.22) (0.16)
---------- ---------
NET ASSET VALUE, END OF PERIOD $ 12.71 $ 12.50
---------- ---------
TOTAL RETURN (c)(d)(e) .................. 3.44% 1.14%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 807 $ 448
Ratio of expenses to average net
assets (f)(g) .......................... 1.35% 1.32%
Ratio of net investment income to average
net assets (f)(g) ...................... 3.39% 3.71%
Waiver/reimbursement (g) ................ 0.35% 0.35%
Portfolio turnover rate ................. 7%(e) 21%
(a) Class D shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and no
initial sales charge or contingent deferred sales charge.
(d) Had the Distributor not waived or reimbursed a portion of expenses, total
return would have been reduced.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
See Accompanying Notes to Financial Statements
70
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA OREGON MUNICIPAL BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED
JUNE 30, YEAR ENDED DECEMBER 31,
CLASS Z SHARES 2003 2002(a) 2001 2000 1999 1998
----------- ----------- ----------- ---------- ---------- ----------
NET ASSET VALUE,
BEGINNING OF PERIOD $ 12.50 $ 12.08 $ 12.13 $ 11.56 $ 12.46 $ 12.47
----------- ----------- ----------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ....... 0.26(b) 0.55(b) 0.57(c) 0.58 0.56 0.58
Net realized and unrealized
gain (loss) on
investments ................ 0.21 0.54 (0.02)(c) 0.58 (0.88) 0.10
----------- ----------- ----------- ---------- ---------- ----------
Total from investment
operations ................ 0.47 1.09 0.55 1.16 (0.32) 0.68
----------- ----------- ----------- ---------- ---------- ----------
LESS DISTRIBUTIONS:
From net investment
income ..................... (0.26) (0.55) (0.57) (0.58) (0.56) (0.58)
From net realized gains ..... -- (0.12) (0.03) (0.01) (0.02) (0.11)
----------- ----------- ----------- ---------- ---------- ----------
Total distributions ........ (0.26) (0.67) (0.60) (0.59) (0.58) (0.69)
----------- ----------- ----------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $ 12.71 $ 12.50 $ 12.08 $ 12.13 $ 11.56 $ 12.46
----------- ----------- ----------- ---------- ---------- ----------
TOTAL RETURN (d) ............. 3.83%(e) 9.24% 4.55% 10.28% (2.65)% 5.58%
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of period
(in thousands) ............... $ 526,217 $ 508,865 $ 491,638 $ 436,544 $ 409,919 $ 462,809
Ratio of expenses to average
net assets (f) ............... 0.60%(g) 0.58% 0.57% 0.58% 0.57% 0.58%
Ratio of net investment income
to average net assets (f) .... 4.23%(g) 4.45% 4.64%(c) 4.92% 4.64% 4.60%
Portfolio turnover rate ...... 7%(e) 21% 14% 22% 28% 17%
(a) On November 1, 2002, the existing Fund shares were redesignated Class Z
shares.
(b) Per share data was calculated using average shares outstanding during
the period.
(c) Effective January 1, 2001, the Fund adopted the provisions of the AICPA
Audit and Accounting Guide for Investment Companies and began amortizing
premium and accreting discount on all debt securities. The effect of this
change for the year ended December 31, 2001, was less than $0.01 to net
investment income and net realized and unrealized loss per share and less
than 0.01% to the ratio of net investment income to average net assets.
Per share data and ratios for the periods prior to December 31, 2001, have
not been restated to reflect this change in presentation.
(d) Total return at net asset value assuming all distributions reinvested.
(e) Not annualized. (f) The benefits derived from custody credits and directed
brokerage arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
See Accompanying Notes to Financial Statements
71
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA HIGH YIELD FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
JUNE 30, DECEMBER 31,
CLASS A SHARES 2003 2002(a)
---------- ---------
NET ASSET VALUE, BEGINNING OF PERIOD $ 8.37 $ 8.17
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b) ............. 0.25 0.09
Net realized and unrealized gain on
investments .......................... 0.34 0.20
---------- ---------
Total from investment operations ..... 0.59 0.29
---------- ---------
LESS DISTRIBUTIONS:
From net investment income ............ (0.27) (0.09)
---------- ---------
NET ASSET VALUE, END OF PERIOD $ 8.69 $ 8.37
---------- ---------
TOTAL RETURN (c)(d) .................... 7.14% 3.50%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 159,930 $ 33,992
Ratio of expenses to average
net assets (e)(f) ..................... 1.02% 1.15%
Ratio of net investment income to
average net assets (e)(f) ............. 5.88% 6.46%
Portfolio turnover rate ................ 10%(d) 42%
(a) Class A shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
See Accompanying Notes to Financial Statements
72
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA HIGH YIELD FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
JUNE 30, DECEMBER 31,
CLASS B SHARES 2003 2002(a)
---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 8.37 $ 8.17
---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b) ............. 0.21 0.07
Net realized and unrealized gain
on investments ....................... 0.34 0.20
---------- ----------
Total from investment operations ..... 0.55 0.27
---------- ----------
LESS DISTRIBUTIONS:
From net investment income ............ (0.23) (0.07)
---------- ----------
NET ASSET VALUE, END OF PERIOD $ 8.69 $ 8.37
---------- ----------
TOTAL RETURN (c)(d) .................... 6.69% 3.33%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 83,757 $ 16,701
Ratio of expenses to average
net assets (e)(f) ..................... 1.90% 1.90%
Ratio of net investment income to
average net assets (e)(f) ............. 4.98% 5.71%
Portfolio turnover rate ................ 10%(d) 42%
(a) Class B shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
See Accompanying Notes to Financial Statements
73
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA HIGH YIELD FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
JUNE 30, DECEMBER 31,
CLASS D SHARES 2003 2002(a)
---------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 8.37 $ 8.17
---------- ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b) .............. 0.22 0.07
Net realized and unrealized gain
on investments ........................ 0.34 0.20
---------- ------------
Total from investment operations ...... 0.56 0.27
---------- ------------
LESS DISTRIBUTIONS:
From net investment income ............. (0.24) (0.07)
---------- ------------
NET ASSET VALUE, END OF PERIOD $ 8.69 $ 8.37
---------- ------------
TOTAL RETURN (c)(d)(e) .................. 6.80% 3.35%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ......................... $ 99,403 $ 18,035
Ratio of expenses to average net
assets (f)(g) .......................... 1.69% 1.75%
Ratio of net investment income to average
net assets (f)(g) ...................... 5.16% 5.86%
Waiver/reimbursement (g) ................ 0.15% 0.15%
Portfolio turnover rate ................. 10%(d) 42%
(a) Class D shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(d) Not annualized.
(e) Had the Distributor not waived a portion of expenses, total return would
have been reduced.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
See Accompanying Notes to Financial Statements
74
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA HIGH YIELD FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED
JUNE 30, YEAR ENDED DECEMBER 31,
CLASS Z SHARES 2003 2002(a) 2001 2000 1999 1998
----------- ----------- ---------- ---------- ---------- ----------
NET ASSET VALUE,
BEGINNING OF PERIOD $ 8.37 $ 8.87 $ 8.98 $ 9.32 $ 9.84 $ 10.04
----------- ----------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ......... 0.27(b) 0.57(b) 0.67(c) 0.75 0.74 0.76
Net realized and unrealized
gain (loss) on investments ... 0.34 (0.48) (0.09)(c) (0.34) (0.51) (0.15)
----------- ----------- ---------- ---------- ---------- ----------
Total from investment
operations .................. 0.61 0.09 0.58 0.41 0.23 0.61
----------- ----------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS:
From net investment income .... (0.29) (0.59) (0.69) (0.75) (0.74) (0.76)
From net realized gains ....... -- -- -- -- (0.01) (0.05)
----------- ----------- ---------- ---------- ---------- ----------
Total distributions .......... (0.29) (0.59) (0.69) (0.75) (0.75) (0.81)
----------- ----------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 8.69 $ 8.37 $ 8.87 $ 8.98 $ 9.32 $ 9.84
----------- ----------- ---------- ---------- ---------- ----------
TOTAL RETURN (d) .............. 7.34%(e) 1.17% 6.63% 4.61% 2.38% 6.26%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ................ $ 1,191,108 $ 702,785 $ 238,994 $ 97,575 $ 71,678 $ 57,524
Ratio of expenses to average
net assets (f) ................ 0.75%(g) 0.77% 0.85% 0.93% 0.91% 0.95%
Ratio of net investment income
to average net assets (f) ..... 6.30%(g) 6.84% 7.47%(c) 8.22% 7.71% 7.52%
Portfolio turnover rate ........ 10%(e) 42% 69% 50% 49% 79%
(a) On November 1, 2002, the existing Fund shares were redesignated Class Z
shares.
(b) Per share data was calculated using average shares outstanding during
the period.
(c) Effective January 1, 2001, the Fund adopted the provisions of the AICPA
Audit and Accounting Guide for Investment Companies and began amortizing
premium and accreting discount on all debt securities. The effect of this
change for the year ended December 31, 2001, was to decrease net investment
income per share by $0.02, decrease net realized and unrealized loss per
share by $0.02 and decrease the ratio of net investment income to average
net assets from 7.64% to 7.47%. Per share data and ratios for periods prior
to December 31, 2001 have not been restated to reflect this change in
presentation.
(d) Total return at net asset value assuming all distributions reinvested.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
See Accompanying Notes to Financial Statements
75
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA DAILY INCOME COMPANY
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
SIX MONTHS
ENDED
JUNE 30, YEAR ENDED DECEMBER 31,
CLASS Z SHARES 2003 2002(a) 2001 2000 1999 1998
----------- ------------ ------------- ------------ ---------- ------------
NET ASSET VALUE,
BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
----------- ------------ ------------- ------------ ---------- ------------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ....... 0.003(b) 0.012(b) 0.036 0.058 0.046 0.050
----------- ------------ ------------- ------------ ---------- ------------
LESS DISTRIBUTIONS:
From net investment
income ..................... (0.003) (0.012) (0.036) (0.058) (0.046) (0.050)
----------- ------------ ------------- ------------ ---------- ------------
NET ASSET VALUE, END
OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
----------- ------------ ------------- ------------ ---------- ------------
TOTAL RETURN (c) ............. 0.33%(d) 1.17% 3.70% 6.00% 4.71% 5.09%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) .............. $ 898,711 $ 1,136,075 $ 1,253,535 $ 1,198,151 $1,165,289 $ 1,109,141
Ratio of expenses to average
net assets (e) .............. 0.62%(f) 0.60% 0.60% 0.60% 0.64% 0.62%
Ratio of net investment income
to average net assets (e) ... 0.64%(f) 1.16% 3.61% 5.82% 4.61% 4.97%
(a) On November 1, 2002, the existing Fund shares were redesignated Class Z
shares.
(b) Per share data was calculated using average shares outstanding during
the period.
(c) Total return at net asset value assuming all distributions reinvested.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
See Accompanying Notes to Financial Statements
76
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77
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA COMMON STOCK FUND
JUNE 30, 2003 (UNAUDITED)
SHARES VALUE
----------- -------------
COMMON STOCKS (96.3%)
CONSUMER DISCRETIONARY (15.8%)
HOTELS, RESTAURANTS & LEISURE (5.0%)
Carnival Corp.......................... 70,100 $ 2,278,951
Hilton Hotels Corp..................... 161,600 2,066,864
McDonald's Corp........................ 345,400 7,619,524
Royal Caribbean Cruises Ltd............ 210,200 4,868,232
Yum! Brands, Inc. (a).................. 146,400 4,327,584
-------------
21,161,155
-------------
INTERNET & CATALOG RETAIL (0.3%)
eBay, Inc. (a)......................... 10,800 1,125,144
-------------
MEDIA (3.8%)
AOL Time Warner, Inc. (a).............. 305,564 4,916,525
Clear Channel Communications,
Inc. (a)............................. 47,125 1,997,629
Comcast Corp., Class A (a)............. 71,667 2,162,910
Interpublic Group of Companies,
Inc. ................................ 92,300 1,234,974
Liberty Media Corp., Class A (a)....... 354,411 4,096,991
Viacom, Inc., Class B (a).............. 44,500 1,942,870
-------------
16,351,899
-------------
MULTI-LINE RETAIL (4.8%)
Dollar General Corp.................... 174,350 3,183,631
Kohl's Corp. (a)....................... 129,260 6,641,379
Target Corp............................ 176,700 6,686,328
Wal-Mart Stores, Inc................... 72,235 3,876,852
-------------
20,388,190
-------------
SPECIALTY RETAIL (1.9%)
Home Depot, Inc........................ 194,125 6,429,420
Lowe's Companies, Inc. ................ 44,325 1,903,759
-------------
8,333,179
-------------
CONSUMER STAPLES (4.4%)
BEVERAGES (1.0%)
PepsiCo, Inc........................... 91,675 4,079,538
-------------
FOOD PRODUCTS (0.2%)
Hershey Foods Corp. ................... 14,300 996,138
-------------
HOUSEHOLD PRODUCTS (0.3%)
Procter & Gamble Co.................... 14,075 1,255,208
-------------
PERSONAL PRODUCTS (1.1%)
Alberto-Culver Co., Class B............ 64,650 3,303,615
Gillette Co............................ 46,100 1,468,746
-------------
4,772,361
-------------
SHARES VALUE
----------- -------------
TOBACCO (1.8%)
Altria Group, Inc...................... 164,700 $ 7,483,968
ENERGY (6.7%)
ENERGY EQUIPMENT & SERVICES (2.4%)
BJ Services Co. (a).................... 51,300 1,916,568
ENSCO International, Inc............... 78,900 2,122,410
Nabors Industries Ltd. (a)............. 44,900 1,775,795
Noble Corp. (a)........................ 52,550 1,802,465
Schlumberger Ltd....................... 57,900 2,754,303
-------------
10,371,541
-------------
OIL & GAS (4.3%)
Apache Corp............................ 73,344 4,771,761
ConocoPhillips......................... 42,725 2,341,330
Devon Energy Corp...................... 39,225 2,094,615
EOG Resources, Inc..................... 36,750 1,537,620
Equitable Resources, Inc............... 40,100 1,633,674
Exxon Mobil Corp....................... 135,782 4,875,932
Pioneer Natural Resources
Co. (a).............................. 40,600 1,059,660
-------------
18,314,592
-------------
FINANCIALS (20.3%)
BANKS (4.5%)
Bank of America Corp................... 114,005 9,009,815
Bank One Corp. ........................ 98,625 3,666,878
Fifth Third Bancorp.................... 36,000 2,064,240
U.S. Bancorp........................... 174,600 4,277,700
-------------
19,018,633
-------------
DIVERSIFIED FINANCIALS (10.6%)
American Express Co.................... 203,675 8,515,652
Citigroup, Inc......................... 411,164 17,597,819
Fannie Mae............................. 38,525 2,598,126
Goldman Sachs Group, Inc............... 34,400 2,881,000
J.P. Morgan Chase & Co................. 212,535 7,264,446
Merrill Lynch & Co., Inc............... 67,275 3,140,397
Morgan Stanley......................... 30,325 1,296,394
Principal Financial Group, Inc......... 63,400 2,044,650
-------------
45,338,484
-------------
INSURANCE (5.2%)
American International Group,
Inc. ................................ 102,937 5,680,064
Aon Corp............................... 68,100 1,639,848
Chubb Corp............................. 85,300 5,118,000
Hartford Financial Services
Group, Inc........................... 84,300 4,245,348
Marsh & McLennan Companies,
Inc. ................................ 66,875 3,415,306
Prudential Financial, Inc.............. 62,800 2,113,220
-------------
22,211,786
-------------
See Accompanying Notes to Financial Statements
78
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -------------
HEALTH CARE (16.7%)
BIOTECHNOLOGY (1.5%)
Amgen, Inc. (a)........................ 67,057 $ 4,455,267
Biogen, Inc. (a)....................... 36,300 1,379,400
IDEC Pharmaceuticals Corp. (a)......... 18,400 625,600
-------------
6,460,267
-------------
HEALTH CARE EQUIPMENT & SUPPLIES (1.4%)
Applera Corp. - Applied Biosystems
Group................................ 83,900 1,596,617
Becton, Dickinson & Co................. 106,200 4,125,870
-------------
5,722,487
-------------
HEALTH CARE PROVIDERS & SERVICES (3.2%)
Aetna, Inc............................. 34,600 2,082,920
Caremark Rx, Inc. (a).................. 100,900 2,591,112
McKesson Corp.......................... 87,775 3,137,078
UnitedHealth Group, Inc................ 72,700 3,653,175
WellPoint Health Networks,
Inc. (a)............................. 25,050 2,111,715
-------------
13,576,000
-------------
PHARMACEUTICALS (10.6%)
Abbott Laboratories.................... 94,190 4,121,754
Bristol-Myers Squibb Co................ 173,518 4,711,014
Johnson & Johnson...................... 139,975 7,236,708
Merck & Co., Inc....................... 105,600 6,394,080
Pfizer, Inc............................ 504,539 17,230,007
Shire Pharmaceuticals Group
PLC, ADR (a)......................... 77,300 1,522,810
Wyeth.................................. 90,350 4,115,442
-------------
45,331,815
-------------
INDUSTRIALS (9.5%)
AEROSPACE & DEFENSE (3.0%)
L-3 Communications Holdings,
Inc. (a)............................. 100,200 4,357,698
Lockheed Martin Corp................... 87,000 4,138,590
Northrop Grumman Corp. ................ 48,300 4,167,807
-------------
12,664,095
-------------
AIR FREIGHT & LOGISTICS (0.5%)
FedEx Corp............................. 32,875 2,039,236
-------------
COMMERCIAL SERVICES & SUPPLIES (1.7%)
First Data Corp........................ 47,150 1,953,896
Waste Management, Inc. ................ 219,900 5,297,391
-------------
..................................... 7,251,287
-------------
INDUSTRIAL CONGLOMERATES (3.4%)
3M Co.................................. 30,525 3,937,114
General Electric Co.................... 375,150 10,759,302
-------------
14,696,416
-------------
SHARES VALUE
----------- -------------
MACHINERY (0.9%)
Deere & Co. ........................... 90,000 $ 4,113,000
-------------
INFORMATION TECHNOLOGY (16.2%)
COMMUNICATIONS EQUIPMENT (2.3%)
Cisco Systems, Inc. (a)................ 223,190 3,725,041
Emulex Corp. (a)....................... 117,860 2,683,672
QUALCOMM, Inc.......................... 100,675 3,599,131
-------------
10,007,844
-------------
COMPUTERS & PERIPHERALS (0.6%)
EMC Corp. (a).......................... 125,400 1,312,938
Hewlett-Packard Co..................... 68,500 1,459,050
-------------
2,771,988
-------------
INTERNET SOFTWARE & SERVICES (0.9%)
Yahoo!, Inc. (a)....................... 111,300 3,646,188
-------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (6.1%)
Broadcom Corp., Class A (a)............ 76,700 1,910,597
Intel Corp............................. 132,875 2,761,674
Intersil Corp., Class A (a)............ 110,700 2,945,727
Linear Technology Corp................. 86,000 2,770,060
Marvell Technology Group
Ltd. (a)............................ 93,600 3,217,032
Maxim Integrated Products, Inc......... 15,125 517,124
National Semiconductor
Corp. (a)............................ 86,125 1,698,385
NVIDIA Corp. (a)....................... 70,700 1,626,807
Silicon Laboratories, Inc. (a)......... 89,900 2,394,936
Taiwan Semiconductor Manufacturing
Co., Ltd., ADR (a)................... 275,020 2,772,202
Texas Instruments, Inc................. 57,600 1,013,760
Vitesse Semiconductor Corp. (a)........ 186,500 917,580
Xilinx, Inc. (a)....................... 58,800 1,488,228
-------------
26,034,112
-------------
SOFTWARE (6.3%)
BEA Systems, Inc. (a).................. 128,400 1,394,424
Computer Associates
International, Inc................... 77,800 1,733,384
Mercury Interactive Corp. (a).......... 55,900 2,158,299
Microsoft Corp......................... 575,925 14,749,439
Oracle Corp. (a)....................... 158,900 1,909,978
Symantec Corp. (a)..................... 47,575 2,086,640
VERITAS Software Corp. (a)............. 92,400 2,649,108
-------------
26,681,272
-------------
MATERIALS (0.5%)
CHEMICALS (0.5%)
Praxair, Inc........................... 34,925 2,098,992
-------------
See Accompanying Notes to Financial Statements
79
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA COMMON STOCK FUND (CONT.)
JUNE 30, 2003 (UNAUDITED)
SHARES VALUE
----------- -------------
TELECOMMUNICATION SERVICES (3.9%)
DIVERSIFIED TELECOMMUNICATION SERVICES (3.4%)
BellSouth Corp......................... 176,200 $ 4,692,206
SBC Communications, Inc................ 168,650 4,309,007
Verizon Communications, Inc............ 136,700 5,392,815
-------------
14,394,028
-------------
WIRELESS TELECOMMUNICATION SERVICES (0.5%)
Vodafone Group PLC, ADR................ 113,150 2,223,398
-------------
UTILITIES (2.3%)
ELECTRIC UTILITIES (2.3%)
Ameren Corp............................ 35,600 1,569,960
Consolidated Edison, Inc............... 65,500 2,834,840
DTE Energy Co.......................... 110,600 4,273,585
Pinnacle West Capital Corp............. 26,600 996,170
-------------
9,674,555
-------------
Total Common Stocks
(Cost of $351,412,391)............... 410,588,796
-------------
PREFERRED STOCK (0.5%)
CONSUMER DISCRETIONARY (0.5%)
MEDIA (0.5%)
News Corp., Ltd., ADR
(Cost of $1,862,298)................. 88,225 2,210,036
-------------
SHORT-TERM OBLIGATION (4.0%) PAR
Repurchase agreement with State
Street Bank & Trust Co., dated
06/30/03, due 07/01/03 at 0.950%,
collateralized by a U.S. Treasury
Bond maturing 11/15/10,
market value $17,518,500
(repurchase proceeds $17,175,453)
(Cost of $17,175,000)................ $17,175,000 17,175,000
-------------
TOTAL INVESTMENTS (100.8%)
(Cost of $370,449,689) (b)........... 429,973,832
-------------
OTHER ASSETS & LIABILITIES, NET (-0.8%).... (3,562,959)
-------------
NET ASSETS (100.0%)........................ $ 426,410,873
=============
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Non-income producing.
(b) Cost for both financial statement and federal income tax purposes is the
same.
ACRONYM NAME
------- ----
ADR American Depositary Receipt
COLUMBIA GROWTH FUND
JUNE 30, 2003 (UNAUDITED)
SHARES VALUE
----------- -------------
COMMON STOCKS (97.8%)
CONSUMER DISCRETIONARY (14.9%)
HOTELS, RESTAURANTS & LEISURE (0.9%)
Wendy's International, Inc............. 149,820 $ 4,340,285
Yum! Brands, Inc. (a).................. 128,580 3,800,825
-------------
8,141,110
-------------
HOUSEHOLD DURABLES (0.3%)
Garmin Ltd. (a)........................ 69,000 2,751,030
-------------
INTERNET & CATALOG RETAIL (1.7%)
eBay, Inc. (a)......................... 70,200 7,313,436
InterActiveCorp (a).................... 187,150 7,405,525
-------------
14,718,961
-------------
MEDIA (4.4%)
AOL Time Warner, Inc. (a).............. 517,975 8,334,218
Clear Channel Communications,
Inc. (a)............................. 213,731 9,060,057
Comcast Corp., Class A (a)............. 116,500 3,587,312
Liberty Media Corp., Class A (a)....... 540,895 6,252,746
Viacom, Inc., Class B (a).............. 196,490 8,578,753
XM Satellite Radio Holdings, Inc.,
Class A (a).......................... 323,000 3,569,150
-------------
39,382,236
-------------
MULTI-LINE RETAIL (3.4%)
Kohl's Corp. (a)....................... 274,254 14,091,171
Target Corp............................ 416,990 15,778,902
-------------
29,870,073
-------------
SPECIALTY RETAIL (4.2%)
Bed Bath & Beyond, Inc. (a)............ 178,360 6,922,152
Chico's FAS, Inc. (a).................. 332,700 7,003,335
Home Depot, Inc........................ 406,900 13,476,528
Lowe's Companies, Inc.................. 230,500 9,899,975
-------------
37,301,990
-------------
CONSUMER STAPLES (11.1%)
BEVERAGES (3.4%)
Anheuser-Busch Companies, Inc.......... 65,670 3,352,453
Coca-Cola Co........................... 186,380 8,649,896
PepsiCo, Inc........................... 404,740 18,010,930
-------------
30,013,279
-------------
FOOD & DRUG RETAILING (0.9%)
Sysco Corp............................. 199,710 5,999,288
Whole Foods Market, Inc. (a)........... 45,700 2,172,121
-------------
8,171,409
-------------
See Accompanying Notes to Financial Statements
80
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -------------
FOOD PRODUCTS (1.0%)
Dean Foods Co. (a)..................... 175,600 $ 5,531,400
Wm. Wrigley Jr. Co. ................... 62,090 3,491,321
-------------
9,022,721
-------------
FOOD & STAPLES RETAILING (2.5%)
Wal-Mart Stores, Inc................... 409,990 22,004,163
-------------
HOUSEHOLD PRODUCTS (0.9%)
Procter & Gamble Co. .................. 88,960 7,933,453
-------------
PERSONAL PRODUCTS (1.7%)
Alberto-Culver Co., Class B............ 121,830 6,225,513
Gillette Co............................ 263,260 8,387,464
-------------
14,612,977
-------------
TOBACCO (0.7%)
Altria Group, Inc...................... 141,170 6,414,765
-------------
ENERGY (3.8%)
ENERGY EQUIPMENT & SERVICES (3.0%)
BJ Services Co. (a).................... 137,790 5,147,834
Nabors Industries Ltd. (a)............. 146,550 5,796,052
Noble Corp. (a)........................ 98,250 3,369,975
Patterson-UTI Energy, Inc. (a)......... 132,100 4,280,040
Schlumberger Ltd....................... 107,300 5,104,261
Smith International, Inc. (a).......... 85,700 3,148,618
-------------
26,846,780
-------------
OIL & GAS (0.8%)
Apache Corp............................ 66,000 4,293,960
Murphy Oil Corp. ...................... 55,200 2,903,520
-------------
7,197,480
-------------
FINANCIALS (7.6%)
CAPITAL MARKETS (0.8%)
Goldman Sachs Group, Inc............... 84,490 7,076,038
-------------
CONSUMER FINANCE (0.5%)
SLM Corp............................... 98,610 3,862,554
-------------
DIVERSIFIED FINANCIALS (3.2%)
Citigroup, Inc......................... 672,026 28,762,713
-------------
INSURANCE (1.6%)
American International Group,
Inc. ................................ 201,014 11,091,953
Marsh & McLennan Companies,
Inc. ................................ 69,070 3,527,405
-------------
14,619,358
-------------
THRIFTS & MORTGAGE FINANCE (1.5%)
Fannie Mae............................. 192,930 13,011,199
-------------
SHARES VALUE
----------- -------------
HEALTH CARE (25.4%)
BIOTECHNOLOGY (2.8%)
Amgen, Inc. (a)........................ 368,300 $ 24,469,852
IDEC Pharmaceuticals Corp. (a)......... 13,700 465,800
-------------
24,935,652
-------------
HEALTH CARE EQUIPMENT & SUPPLIES (4.5%)
Alcon, Inc............................. 94,500 4,318,650
Becton, Dickinson & Co................. 180,800 7,024,080
Boston Scientific Corp. (a)............ 141,170 8,625,487
Medtronic, Inc......................... 220,355 10,570,429
St. Jude Medical, Inc. (a)............. 155,200 8,924,000
-------------
39,462,646
-------------
HEALTH CARE PROVIDERS & SERVICES (3.7%)
Anthem, Inc. (a)....................... 81,350 6,276,152
Caremark Rx, Inc. (a).................. 163,700 4,203,816
McKesson Corp.......................... 77,900 2,784,146
UnitedHealth Group, Inc................ 284,520 14,297,130
WellPoint Health Networks,
Inc. (a)............................. 62,880 5,300,784
-------------
32,862,028
-------------
PHARMACEUTICALS (14.4%)
Abbott Laboratories.................... 258,800 11,325,088
Biovail Corp. (a)...................... 169,000 7,953,140
Johnson & Johnson...................... 454,850 23,515,745
Merck & Co., Inc....................... 132,740 8,037,407
Pfizer, Inc............................ 1,681,333 57,417,522
Teva Pharmaceutical Industries
Ltd., ADR............................ 170,870 9,727,629
Wyeth.................................. 221,910 10,108,000
-------------
128,084,531
-------------
INDUSTRIALS (6.5%)
AEROSPACE & DEFENSE (0.7%)
Lockheed Martin Corp................... 125,700 5,979,549
-------------
AIR FREIGHT & LOGISTICS (1.2%)
FedEx Corp. ........................... 102,500 6,358,075
United Parcel Service, Inc.,
Class B.............................. 72,600 4,624,620
-------------
10,982,695
-------------
INDUSTRIAL CONGLOMERATES (4.6%)
General Electric Co.................... 1,046,685 30,018,926
Tyco International Ltd................. 539,700 10,243,506
-------------
40,262,432
-------------
See Accompanying Notes to Financial Statements
81
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA GROWTH FUND (cont.)
JUNE 30, 2003 (UNAUDITED)
SHARES VALUE
----------- -------------
INFORMATION TECHNOLOGY (27.8%)
COMMUNICATIONS EQUIPMENT (4.5%)
Brocade Communications Systems,
Inc. (a)............................. 307,200 $ 1,809,408
Cisco Systems, Inc. (a)................ 1,418,075 23,667,672
Comverse Technology, Inc. (a).......... 92,200 1,385,766
Juniper Networks, Inc. (a)............. 63,600 786,732
Motorola, Inc. ........................ 395,700 3,731,451
UTStarcom, Inc. (a).................... 250,900 8,924,513
-------------
40,305,542
-------------
COMPUTERS & PERIPHERALS (3.7%)
Dell Computer Corp. (a)................ 567,690 18,143,372
Lexmark International, Inc. (a)........ 206,850 14,638,774
-------------
32,782,146
-------------
IT SERVICES (1.7%)
Concord EFS, Inc. (a).................. 570,600 8,399,232
First Data Corp........................ 154,340 6,395,850
-------------
14,795,082
-------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (10.2%)
Analog Devices, Inc. (a)............... 126,000 4,387,320
Applied Micro Circuits Corp. (a)....... 348,900 2,110,845
ASML Holdings NV, NY
Registered Shares (a)................ 187,900 1,796,324
Broadcom Corp., Class A (a)............ 201,900 5,029,329
Cabot Microelectronics Corp. (a)....... 178,100 8,988,707
Infineon Technologies AG, ADR.......... 582,900 5,590,011
Intel Corp............................. 703,070 14,612,607
Intersil Corp., Class A (a)............ 487,600 12,975,036
Marvell Technology Group
Ltd. (a)............................. 240,000 8,248,800
Maxim Integrated Products, Inc......... 36,700 1,254,773
Microchip Technology, Inc.............. 115,450 2,843,533
NVIDIA Corp. (a)....................... 432,950 9,962,180
PMC-Sierra, Inc. (a)................... 762,300 8,941,779
Texas Instruments, Inc................. 239,820 4,220,832
-------------
90,962,076
-------------
SOFTWARE (7.7%)
Adobe Systems, Inc..................... 143,200 4,592,424
Electronic Arts, Inc. (a).............. 57,230 4,234,448
Microsoft Corp......................... 1,618,000 41,436,980
Oracle Corp. (a)....................... 553,490 6,652,950
SAP AG, ADR............................ 212,710 6,215,386
VERITAS Software Corp. (a)............. 176,800 5,068,856
-------------
68,201,044
-------------
SHARES VALUE
----------- -------------
TELECOMMUNICATION SERVICES (0.7%)
WIRELESS TELECOMMUNICATION SERVICES (0.7%)
AT&T Wireless Services, Inc. (a)....... 232,400 $ 1,908,004
Mobile Telesystems, ADR (a)............ 48,800 2,879,200
Sprint Corp. - PCS Group (a)........... 224,800 1,292,600
-------------
6,079,804
-------------
Total Common Stocks
(Cost of $716,621,668)............... 867,409,516
-------------
PREFERRED STOCK (0.5%)
CONSUMER DISCRETIONARY (0.5%)
MEDIA (0.5%)
News Corp., Ltd., ADR
(Cost of $4,078,855)................. 181,825 4,554,716
-------------
SHORT-TERM OBLIGATION (1.5%) PAR
Repurchase agreement with State
Street Bank & Trust Co., dated
06/30/03, due 07/01/03 at 0.950%,
collateralized by a U.S. Treasury
Bond maturing 05/15/10,
market value $13,437,450
(repurchase proceeds $13,171,348)
(Cost of $13,171,000)................ $13,171,000 13,171,000
-------------
TOTAL INVESTMENTS (99.8%)
(Cost of $733,871,523) (b)........... 885,135,232
-------------
OTHER ASSETS & LIABILITIES, NET (0.2%)..... 1,994,542
-------------
NET ASSETS (100.0%)........................ $ 887,129,774
=============
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Non-income producing.
(b) Cost for both financial statement and federal income tax purposes is the
same.
ACRONYM NAME
------- ----
ADR American Depositary Receipt
COLUMBIA INTERNATIONAL STOCK FUND
JUNE 30, 2003 (UNAUDITED)
SHARES VALUE
----------- -------------
COMMON STOCKS (95.3%)
CONSUMER DISCRETIONARY (20.9%)
AUTO COMPONENTS (0.6%)
F.C.C. Co., Ltd........................ 19,900 $ 471,536
Nissan Shatai Co., Ltd................. 263,500 885,991
-------------
1,357,527
-------------
See Accompanying Notes to Financial Statements
82
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -------------
AUTOMOBILES (1.0%)
Honda Motor Co., Ltd................... 38,600 $ 1,465,354
Nissan Motor Co., Ltd.................. 108,000 1,034,450
-------------
2,499,804
-------------
HOUSEHOLD DURABLES (5.5%)
Koninklijke (Royal) Philips
Electronics NV....................... 135,200 2,575,309
Land and Houses Public Co.,
Ltd., NVDR........................... 13,098,000 2,739,777
Matsushita Electric Industrial
Co., Ltd............................. 282,000 2,797,530
Pioneer Corp........................... 122,300 2,755,079
Sanyo Electric Co., Ltd................ 455,000 1,560,260
Srithai Superware Public Co.,
Ltd. (a)............................. 3,500,000 678,037
-------------
13,105,992
-------------
INTERNET & CATALOG RETAIL (0.5%)
Belluna Co., Ltd....................... 30,000 1,226,482
-------------
MEDIA (5.6%)
BEC World Public Co., Ltd. PLC......... 144,500 824,340
British Sky Broadcasting PLC (a)....... 239,100 2,653,826
JC Decaux SA (a)....................... 116,700 1,463,153
Pearson PLC............................ 339,200 3,173,358
Reed Elsevier PLC...................... 236,900 1,974,503
VNU NV................................. 100,900 3,113,897
-------------
13,203,077
-------------
MULTI-LINE RETAIL (3.3%)
Aeon Co., Ltd.......................... 73,000 1,674,941
Don Quijote Co., Ltd. ................. 7,300 367,269
Don Quijote Co., Ltd. (a)(b)........... 7,300 336,206
Shinsegae Co., Ltd..................... 15,430 2,409,121
Wal-Mart de Mexico SA de CV,
Class V.............................. 1,014,000 2,989,745
-------------
7,777,282
-------------
SPECIALTY RETAIL (2.7%)
Kingfisher PLC......................... 529,100 2,424,689
Next PLC............................... 160,558 2,724,192
Shimamura Co., Ltd..................... 24,000 1,327,604
-------------
6,476,485
-------------
TEXTILES, APPAREL & LUXURY GOODS (1.7%)
LVMH Moet Hennessy Louis
Vuitton SA........................... 35,100 1,743,744
Puma AG................................ 16,400 1,631,745
Sanyo Shokai Ltd....................... 94,000 569,388
-------------
3,944,877
-------------
SHARES VALUE
----------- -------------
CONSUMER STAPLES (8.1%)
BEVERAGES (2.5%)
Diageo PLC............................. 194,198 $ 2,076,805
Foster's Group Ltd..................... 626,577 1,771,211
Pernod-Ricard SA....................... 22,050 1,970,707
-------------
5,818,723
-------------
FOOD & DRUG RETAILING (0.9%)
Big C Supercenter Public Co.,s
Ltd., NVDR........................... 2,815,000 1,191,039
Seven-Eleven Japan Co., Ltd............ 40,000 997,872
-------------
2,188,911
-------------
FOOD PRODUCTS (1.9%)
Nestle SA, Registered Shares........... 9,156 1,893,387
Unilever NV............................ 19,700 1,058,672
Unilever PLC........................... 120,237 958,920
Yakult Honsha Co., Ltd................. 42,000 564,182
-------------
4,475,161
-------------
HOUSEHOLD PRODUCTS (1.1%)
Reckitt Benckiser PLC.................. 143,360 2,634,994
-------------
PERSONAL PRODUCTS (0.7%)
L'Oreal SA............................. 24,720 1,745,859
-------------
TOBACCO (1.0%)
Imperial Tobacco Group PLC............. 132,300 2,368,291
-------------
ENERGY (3.1%)
OIL & GAS (3.1%)
BP PLC................................. 110,318 766,304
BP PLC, ADR............................ 47,500 1,995,950
ENI S.p.A. ............................ 242,050 3,666,766
Total Fina Elf SA...................... 6,675 1,010,414
-------------
7,439,434
-------------
FINANCIALS (17.2%)
BANKS (13.8%)
Anglo Irish Bank Corp. PLC............. 131,200 1,149,361
Banco Popular Espanol SA............... 25,375 1,284,254
Banco Santander Central
Hispano SA........................... 259,400 2,276,601
Bank of Ireland........................ 160,307 1,937,972
Barclays PLC........................... 392,856 2,922,084
Credit Agricole SA..................... 125,143 2,382,303
Credit Suisse Group.................... 120,480 3,177,798
Danske Bank A/S........................ 87,100 1,698,749
Fortis Bank Nederland Holding
NV (a)(c)(d)(e)...................... 4,100 --
Grupo Financiero BBVA
Bancomer SA de CV (a)................ 1,696,300 1,433,402
Kookmin Bank........................... 24,980 752,851
Royal Bank of Scotland Group PLC....... 145,471 4,087,635
See Accompanying Notes to Financial Statements
83
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA INTERNATIONAL STOCK FUND (CONT.)
JUNE 30, 2003 (UNAUDITED)
SHARES VALUE
----------- -------------
Siam Commercial Bank Public Co.,
Ltd. (a)............................. 1,721,300 $ 1,472,945
Standard Chartered PLC................. 303,322 3,690,018
UBS AG, Registered Shares.............. 20,480 1,141,734
UniCredito Italiano S.p.A.............. 680,200 3,246,961
-------------
32,654,668
-------------
DIVERSIFIED FINANCIALS (1.7%)
Euronext NV............................ 70,300 1,745,823
ING Groep NV........................... 130,800 2,276,350
-------------
4,022,173
-------------
INSURANCE (0.9%)
Converium Holding AG................... 16,100 744,488
Irish Life & Permanent PLC............. 127,100 1,369,031
-------------
2,113,519
-------------
REAL ESTATE (0.8%)
Mitsubishi Estate Co., Ltd............. 285,000 1,933,211
-------------
HEALTH CARE (10.6%)
HEALTH CARE EQUIPMENT & SUPPLIES (2.6%)
Olympus Optical Co., Ltd. ............. 116,000 2,405,073
ResMed, Inc. (a)....................... 44,900 1,760,080
Smith & Nephew PLC..................... 345,310 1,987,683
-------------
6,152,836
-------------
PHARMACEUTICALS (8.0%)
Chugai Pharmaceutical Co., Ltd......... 191,600 2,180,488
Dr. Reddy's Laboratories Ltd., ADR..... 58,000 1,351,980
GlaxoSmithKline PLC.................... 101,826 2,058,410
Novartis AG............................ 63,590 2,521,770
Ranbaxy Laboratories Ltd., GDR......... 77,000 1,474,550
Roche Holding AG....................... 7,296 573,542
Sanofi-Synthelabo SA................... 26,264 1,540,719
Sawai Pharmaceutical Co., Ltd.......... 43,900 1,175,746
Stada Arzneimittel AG.................. 8,600 548,025
Takeda Chemical Industries Ltd......... 52,000 1,921,989
Taro Pharmaceuticals Industries
Ltd. (a)............................. 10,700 587,216
Teva Pharmaceutical Industries
Ltd., ADR............................ 54,000 3,074,220
-------------
19,008,655
-------------
INDUSTRIALS (7.7%)
AIR FREIGHT & LOGISTICS (0.4%)
Exel PLC............................... 81,600 838,933
-------------
AIRLINES (1.0%)
Cathay Pacific Airways Ltd............. 832,000 1,120,266
Singapore Airlines Ltd................. 188,000 1,110,436
-------------
2,230,702
-------------
SHARES VALUE
----------- -------------
COMMERCIAL SERVICES & SUPPLIES (1.4%)
Amadeus Global Travel
Distribution SA...................... 365,600 $ 2,098,452
Capita Group PLC....................... 349,975 1,307,351
-------------
3,405,803
-------------
INDUSTRIAL CONGLOMERATES (1.9%)
JSC MMC Norilsk Nickel, ADR (a)........ 17,700 615,960
Smiths Group PLC....................... 192,500 2,236,829
Wesfarmers Ltd......................... 102,750 1,745,485
-------------
4,598,274
-------------
TRANSPORTATION INFRASTRUCTURE (3.0%)
ACESA Infraestructuras, SA (a)......... 165,321 2,314,254
BAA PLC................................ 220,679 1,789,150
Cosco Pacific Ltd...................... 1,964,000 2,052,615
Zhejiang Expressway Co., Ltd.,
Class H.............................. 2,500,000 1,033,899
-------------
7,189,918
-------------
INFORMATION TECHNOLOGY (9.7%)
COMMUNICATIONS EQUIPMENT (0.9%)
Nokia Oyj, ADR......................... 74,600 1,225,678
Nortel Networks Corp. (a).............. 356,900 958,227
-------------
2,183,905
-------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (1.5%)
Hoya Corp. ............................ 22,600 1,559,401
Keyence Corp........................... 10,500 1,927,329
-------------
3,486,730
-------------
INFORMATION TECHNOLOGY CONSULTING & SERVICES (0.7%)
Indra Sistemas SA...................... 164,700 1,676,599
-------------
OFFICE ELECTRONICS (1.1%)
Canon, Inc............................. 54,000 2,482,500
-------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (4.6%)
ARM Holdings PLC (a)................... 1,094,800 1,212,429
Rohm Co., Ltd. ........................ 14,700 1,605,465
Samsung Electronics Co., Ltd. ......... 9,000 2,674,759
Taiwan Semiconductor
Manufacturing Co., Ltd. (a).......... 325,000 3,276,000
Tokyo Electron Ltd..................... 46,800 2,221,785
-------------
10,990,438
-------------
SOFTWARE (0.9%)
Dassault Systemes SA................... 64,291 2,114,991
-------------
MATERIALS (6.7%)
CHEMICALS (0.9%)
L'Air Liquide SA....................... 7,719 1,146,251
Shin-Etsu Chemical Co., Ltd. .......... 32,800 1,122,022
-------------
2,268,273
-------------
See Accompanying Notes to Financial Statements
84
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -------------
CONSTRUCTION MATERIALS (1.5%)
Siam Cement Public Co., Ltd.,
NVDR................................. 978,000 $ 3,487,045
-------------
CONTAINERS & PACKAGING (0.9%)
Amcor Ltd.............................. 395,100 2,154,154
-------------
METALS & MINING (2.1%)
BHP Billiton Ltd....................... 500,100 2,901,244
Rio Tinto PLC.......................... 112,500 2,119,845
-------------
5,021,089
-------------
PAPER & FOREST PRODUCTS (1.3%)
Stora Enso Oyj, Class R................ 84,000 940,123
Svenska Cellulosa AB, Class B.......... 35,700 1,221,227
UPM-Kymmene Oyj........................ 61,800 903,496
-------------
3,064,846
-------------
TELECOMMUNICATION SERVICES (7.8%)
DIVERSIFIED TELECOMMUNICATION SERVICES (2.8%)
Telecom Italia S.p.A................... 259,600 2,353,007
Telefonica SA (a)...................... 363,484 4,226,967
-------------
6,579,974
-------------
WIRELESS TELECOMMUNICATION SERVICES (5.0%)
NTT DoCoMo, Inc........................ 1,430 3,102,082
Orange SA (a).......................... 207,700 1,846,751
Vodafone Group PLC..................... 3,500,729 6,856,834
-------------
11,805,667
-------------
UTILITIES (3.5%)
ELECTRIC UTILITIES (1.8%)
Huaneng Power International, Inc.,
Class H.............................. 1,664,000 1,899,117
National Grid Transco PLC.............. 335,036 2,276,041
-------------
4,175,158
-------------
GAS UTILITIES (1.7%)
Centrica PLC........................... 557,900 1,620,684
Hong Kong and China Gas
Co., Ltd............................. 1,137,540 1,436,850
Snam Rete Gas S.p.A.................... 256,300 1,008,247
-------------
4,065,781
-------------
Total Common Stocks
(Cost of $208,393,913)............... 225,968,741
-------------
WARRANTS (0.2%) UNITS
FINANCIALS (0.2%)
BANKS (0.2%)
Siam Commercial Bank
Public Co., Ltd. (a)
Expires 06/22/04
(Cost of $359,604)................... 2,771,666 401,882
-------------
SHARES VALUE
----------- -------------
INVESTMENT
MANAGEMENT FUND (0.1%)
Thai Fund, Inc.
(Cost of $153,085)................... 37,100 $ 207,018
-------------
SHORT-TERM OBLIGATION (6.4%) PAR
Repurchase agreement with State
Street Bank & Trust Co., dated
06/30/03, due 07/01/03 at 0.950%,
collateralized by a U.S. Treasury
Bill and a U.S. Treasury Bond with
maturities to 11/15/09, market
value $15,535,000 (repurchase
proceeds $15,216,402)
(Cost of $15,216,000)................ $15,216,000 15,216,000
-------------
TOTAL INVESTMENTS (102.0%)
(Cost of $224,122,602) (f)........... 241,793,641
-------------
OTHER ASSETS & LIABILITIES, NET (-2.0%).... (4,651,094)
-------------
NET ASSETS (100.0%)........................ $ 237,142,547
=============
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Non-income producing.
(b) Security purchased on a when-issued basis.
(c) This security is exempt from registration under Rule 144A of the Securities
Act of 1933 and may be resold in transactions exempt from registration,
normally to qualified institutional buyers. At June 30, 2003, the value of
this security amounted to less than $1, which represents less than 0.1% of
net assets.
(d) Represents fair value as determined in good faith under the direction of
the Board of Directors. (e) Rounds to less than $1.
(f) Cost for both financial statement and federal income tax purposes is the
same.
SUMMARY OF SECURITIES % OF TOTAL
BY COUNTRY VALUE INVESTMENTS
- --------------------------------------------------------------------------------
United Kingdom............................. $58,755,758 24.3%
Japan ..................................... 41,671,235 17.2
United States*............................. 17,183,098 7.1
France..................................... 16,964,892 7.0
Spain ..................................... 13,877,127 5.7
Thailand................................... 10,795,065 4.5
Netherlands................................ 10,770,051 4.5
Italy ..................................... 10,274,981 4.2
Switzerland................................ 10,052,719 4.2
Australia.................................. 8,572,094 3.5
South Korea................................ 5,836,731 2.4
Ireland.................................... 4,456,364 1.8
Mexico..................................... 4,423,147 1.8
Israel..................................... 3,661,436 1.5
Taiwan..................................... 3,276,000 1.4
Finland.................................... 3,069,297 1.3
See Accompanying Notes to Financial Statements
85
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA INTERNATIONAL STOCK FUND (CONT.)
JUNE 30, 2003 (UNAUDITED)
Summary of Securities % of Total
by Country (continued) Value Investments
- --------------------------------------------------------------------------------
China ..................................... $ 2,933,016 1.2%
India ..................................... 2,826,530 1.2
Hong Kong.................................. 2,557,116 1.1
Germany.................................... 2,179,770 0.9
Bermuda.................................... 2,052,615 0.8
Denmark.................................... 1,698,749 0.7
Sweden..................................... 1,221,227 0.5
Singapore.................................. 1,110,436 0.5
Canada..................................... 958,227 0.4
Russian Federation......................... 615,960 0.3
------------ -----
$241,793,641 100.0%
============ =====
* Includes Short-Term Obligation.
Certain securities are listed by country of underlying exposure but may trade
predominately on other exchanges.
ACRONYM NAME
------- ----
ADR American Depositary Receipt
GDR Global Depositary Receipt
NVDR Non-Voting Depositary Receipt
COLUMBIA SPECIAL FUND
JUNE 30, 2003 (UNAUDITED)
SHARES VALUE
----------- -------------
COMMON STOCKS (96.1%)
CONSUMER DISCRETIONARY (17.3%)
AUTO COMPONENTS (0.7%)
Gentex Corp. (a)....................... 218,700 $ 6,694,407
-------------
HOTELS, RESTAURANTS & LEISURE (5.0%)
Brinker International, Inc. (a)........ 395,440 14,243,749
Darden Restaurants, Inc................ 606,400 11,509,472
MGM Mirage (a)......................... 223,900 7,652,902
Outback Steakhouse, Inc................ 178,950 6,979,050
Starwood Hotels & Resorts
Worldwide, Inc....................... 260,400 7,444,836
-------------
47,830,009
-------------
LEISURE EQUIPMENT & PRODUCTS (0.4%)
Mattel, Inc............................ 212,690 4,024,095
-------------
MEDIA (5.5%)
Cox Radio, Inc., Class A (a)........... 493,900 11,414,029
Hispanic Broadcasting Corp. (a)........ 526,300 13,394,335
InterActiveCorp (a).................... 271,200 10,731,384
Interpublic Group of
Companies, Inc....................... 419,600 5,614,248
SHARES VALUE
----------- -------------
Univision Communications, Inc.,
Class A (a).......................... 235,150 $ 7,148,560
Westwood One, Inc. (a)................. 141,300 4,794,309
-------------
53,096,865
-------------
MULTI-LINE RETAIL (1.9%)
Dollar Tree Stores, Inc. (a)........... 148,100 4,699,213
Family Dollar Stores, Inc.............. 191,100 7,290,465
Kohl's Corp. (a)....................... 121,500 6,242,670
-------------
18,232,348
-------------
SPECIALTY RETAIL (3.8%)
Bed Bath & Beyond, Inc. (a)............ 356,700 13,843,527
Chico's FAS, Inc. (a).................. 226,300 4,763,615
Williams-Sonoma, Inc. (a).............. 634,000 18,512,800
-------------
37,119,942
-------------
CONSUMER STAPLES (0.4%)
FOOD & DRUG RETAILING (0.4%)
Whole Foods Market, Inc. (a)........... 83,900 3,987,767
-------------
ENERGY (9.4%)
ENERGY EQUIPMENT & SERVICES (5.3%)
BJ Services Co. (a).................... 470,900 17,592,824
Nabors Industries Ltd. (a)............. 167,650 6,630,558
National-Oilwell, Inc. (a)............. 403,700 8,881,400
Noble Corp. (a)........................ 252,800 8,671,040
Patterson-UTI Energy, Inc. (a)......... 278,850 9,034,740
-------------
50,810,562
-------------
OIL & GAS (4.1%)
Apache Corp............................ 227,372 14,792,823
Murphy Oil Corp. ...................... 139,700 7,348,220
Valero Energy Corp..................... 295,100 10,720,983
XTO Energy, Inc........................ 321,000 6,455,310
-------------
39,317,336
-------------
FINANCIALS (5.7%)
DIVERSIFIED FINANCIALS (1.6%)
Legg Mason, Inc........................ 83,800 5,442,810
Moody's Corp........................... 107,950 5,690,044
Providian Financial Corp. (a).......... 528,400 4,892,984
-------------
16,025,838
-------------
INSURANCE (4.1%)
Ambac Financial Group, Inc............. 249,100 16,502,875
Arthur J. Gallagher & Co............... 353,250 9,608,400
Stancorp Financial Group, Inc.......... 253,150 13,219,493
-------------
39,330,768
-------------
See Accompanying Notes to Financial Statements
86
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -------------
HEALTH CARE (27.2%)
BIOTECHNOLOGY (1.3%)
Biogen, Inc. (a)....................... 49,650 $ 1,886,700
Gilead Sciences, Inc. (a).............. 136,900 7,608,902
MedImmune, Inc. (a).................... 76,850 2,795,034
-------------
12,290,636
-------------
HEALTH CARE EQUIPMENT & SUPPLIES (2.3%)
Boston Scientific Corp. (a)............ 133,650 8,166,015
Hillenbrand Industries, Inc............ 87,200 4,399,240
Varian Medical Systems, Inc. (a)....... 161,140 9,276,830
-------------
21,842,085
-------------
HEALTH CARE PROVIDERS & SERVICES (18.0%)
AmerisourceBergen Corp................. 300,400 20,832,740
Anthem, Inc. (a)....................... 149,550 11,537,782
Caremark Rx, Inc. (a).................. 1,565,750 40,208,460
Community Health Systems,
Inc. (a)............................. 331,080 6,386,533
DaVita, Inc. (a)....................... 357,750 9,580,545
First Health Group Corp. (a)........... 264,000 7,286,400
Laboratory Corporation of
American Holdings (a)................ 255,950 7,716,892
Lincare Holdings, Inc. (a)............. 307,200 9,679,872
UnitedHealth Group, Inc................ 349,200 17,547,300
WebMD Corp. (a)........................ 928,000 10,050,240
WellChoice, Inc. (a)................... 175,900 5,150,352
WellPoint Health Networks,
Inc. (a)............................. 328,000 27,650,400
-------------
173,627,516
-------------
PHARMACEUTICALS (5.6%)
ANDRX Corp. (a)........................ 570,800 11,358,920
Barr Laboratories, Inc. (a)............ 332,575 21,783,662
Biovail Corp. (a)...................... 322,600 15,181,556
Teva Pharmaceutical Industries
Ltd., ADR............................ 93,800 5,340,034
-------------
53,664,172
-------------
INDUSTRIALS (11.5%)
AEROSPACE & DEFENSE (1.0%)
Raytheon Co............................ 306,150 10,053,966
-------------
COMMERCIAL SERVICES & SUPPLIES (6.9%)
BISYS Group, Inc. (a).................. 524,550 9,635,984
ChoicePoint, Inc. (a).................. 302,790 10,452,311
Corporate Executive Board Co. (a)...... 197,700 8,070,114
Education Management Corp. (a)......... 167,300 8,897,014
Republic Services, Inc. (a)............ 414,810 9,403,743
Robert Half International, Inc. (a).... 425,100 8,051,394
Weight Watchers International,
Inc. (a)............................. 263,175 11,971,831
-------------
66,482,391
-------------
SHARES VALUE
----------- -------------
ELECTRICAL EQUIPMENT (0.5%)
American Power Conversion Corp......... 292,400 $ 4,558,516
-------------
TRADING COMPANIES & DISTRIBUTORS (3.1%)
CDW Corp. (a).......................... 204,900 9,384,420
Fastenal Co. .......................... 258,000 8,756,520
W.W. Grainger, Inc..................... 238,710 11,162,080
-------------
29,303,020
-------------
INFORMATION TECHNOLOGY (24.4%)
COMMUNICATIONS EQUIPMENT (2.5%)
3Com Corp. (a)......................... 831,300 3,890,484
Scientific-Atlanta, Inc................ 352,600 8,405,984
UTStarcom, Inc. (a).................... 328,400 11,681,188
-------------
23,977,656
-------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (3.1%)
Amphenol Corp., Class A (a)............ 98,700 4,621,134
Au Optronics Corp., ADR................ 737,100 5,100,732
Jabil Circuit, Inc. (a)................ 656,550 14,509,755
Symbol Technologies, Inc. ............. 461,800 6,008,018
-------------
30,239,639
-------------
INTERNET SOFTWARE & SERVICES (0.5%)
Check Point Software
Technologies Ltd. (a)................ 236,500 4,623,575
-------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (8.8%)
Agere Systems, Inc. (a)................ 3,712,200 8,649,426
Altera Corp. (a)....................... 260,000 4,264,000
Amkor Technology, Inc. (a)............. 387,000 5,085,180
Fairchild Semiconductor
International, Inc. (a).............. 449,500 5,749,105
Marvell Technology Group Ltd. (a)...... 286,100 9,833,257
Microchip Technology, Inc.............. 701,450 17,276,714
National Semiconductor Corp. (a)....... 403,000 7,947,160
Novellus Systems, Inc. (a)............. 328,200 12,019,012
Taiwan Semiconductor
Manufacturing Co., Ltd., ADR (a)..... 948,200 9,557,856
Teradyne, Inc. (a)..................... 270,430 4,681,143
-------------
85,062,853
-------------
SOFTWARE (9.5%)
Amdocs Ltd. (a)........................ 721,300 17,311,200
BMC Software, Inc. (a)................. 437,600 7,146,008
Electronic Arts, Inc. (a).............. 253,350 18,745,366
Intuit, Inc. (a)....................... 171,625 7,642,461
Mercury Interactive Corp. (a).......... 310,150 11,974,892
Siebel Systems, Inc. (a)............... 620,005 5,914,848
Symantec Corp. (a)..................... 197,850 8,677,701
VERITAS Software Corp. (a)............. 476,150 13,651,220
-------------
91,063,696
-------------
See Accompanying Notes to Financial Statements
87
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA SPECIAL FUND (CONT.)
JUNE 30, 2003 (UNAUDITED)
SHARES VALUE
----------- -------------
MATERIALS (0.2%)
CHEMICALS (0.2%)
Methanex Corp. ........................ 150,300 $ 1,606,557
-------------
Total Common Stocks
(Cost of $774,398,125)............... 924,866,215
-------------
CONVERTIBLE PREFERRED STOCK (0.0%)
INFORMATION TECHNOLOGY (0.0%)
INTERNET SOFTWARE & SERVICES (0.0%)
Network Specialists, Inc.,
Series A (a)(b)(c)
(Cost of $3,000,000)................. 394,218 3,942
-------------
SHORT-TERM OBLIGATION (3.4%) PAR
Repurchase agreement with State
Street Bank & Trust Co., dated
06/30/03, due 07/01/03 at 0.950%,
collateralized by a U.S. Treasury
Note and a U.S. Treasury Bond
with maturities to 11/15/08,
market value $33,349,144
(repurchase proceeds $32,690,863)
(Cost of $32,690,000)................ $32,690,000 32,690,000
-------------
TOTAL INVESTMENTS (99.5%)
(Cost of $810,088,125) (d)........... 957,560,157
-------------
OTHER ASSETS & LIABILITIES, NET (0.5%)..... 4,442,072
-------------
NET ASSETS (100.0%)........................ $ 962,002,229
=============
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Non-income producing.
(b) This security is exempt from registration under Rule 144A of the Securities
Act of 1933 and may be resold in transactions exempt from registration,
normally to qualified institutional buyers. At June 30, 2003, the value of
this security amounted to $3,942, which represents less than 0.1% of net
assets.
(c) Represents fair value as determined in good faith under the direction of
the Board of Directors.
(d) Cost for both financial statement and federal income tax purposes is the
same.
ACRONYM NAME
------- ----
ADR American Depositary Receipt
COLUMBIA SMALL CAP FUND
JUNE 30, 2003 (UNAUDITED)
SHARES VALUE
----------- -------------
COMMON STOCKS (96.7%)
CONSUMER DISCRETIONARY (18.0%)
AUTO COMPONENTS (1.9%)
Autoliv, Inc........................... 197,200 $ 5,340,176
Gentex Corp. (a)....................... 171,550 5,251,145
-------------
10,591,321
-------------
HOTELS, RESTAURANTS & LEISURE (4.8%)
Ameristar Casinos, Inc. (a)............ 336,400 3,896,375
Boyd Gaming Corp. (a).................. 153,900 2,656,314
O'Charley's, Inc. (a).................. 143,700 3,093,861
Outback Steakhouse, Inc................ 102,572 4,000,308
P.F. Chang's China Bistro, Inc. (a).... 92,900 4,571,609
Panera Bread Co., Class A (a).......... 140,900 5,636,000
Ruby Tuesday, Inc...................... 122,000 3,017,060
-------------
26,871,527
-------------
HOUSEHOLD DURABLES (1.6%)
Harman International Industries,
Inc. ................................ 111,300 8,808,282
-------------
MEDIA (4.2%)
Entercom Communications
Corp. (a)............................ 176,400 8,645,364
Entravision Communications
Corp., Class A (a)................... 356,000 4,040,600
Lamar Advertising Co. (a).............. 146,312 5,151,646
Radio One, Inc., Class D (a)........... 316,802 5,629,572
-------------
23,467,182
-------------
SPECIALTY RETAIL (5.5%)
Advanced Auto Parts, Inc. (a).......... 64,600 3,934,140
Cost Plus, Inc. (a).................... 81,321 2,899,907
Electronics Boutique Holdings
Corp. (a)............................ 92,200 2,130,742
GameStop Corp. (a)..................... 156,700 2,024,564
Hollywood Entertainment
Corp. (a)............................ 253,900 4,367,080
Linens 'n Things, Inc. (a)............. 117,700 2,778,897
Michaels Stores, Inc. (a).............. 126,975 4,832,668
O'Reilly Automotive, Inc. (a).......... 94,792 3,165,105
PETCO Animal Supplies, Inc. (a)........ 69,100 1,502,234
PETsMART, Inc.......................... 192,600 3,210,642
-------------
30,845,979
-------------
ENERGY (10.6%)
ENERGY EQUIPMENT & SERVICES (7.0%)
Cal Dive International, Inc. (a)....... 191,800 4,181,240
Grey Wolf, Inc. (a).................... 509,800 2,059,592
See Accompanying Notes to Financial Statements
88
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -------------
Key Energy Services, Inc. (a).......... 465,300 $ 4,988,016
Maverick Tube Corp. (a)................ 66,200 1,267,730
National-Oilwell, Inc. (a)............. 243,300 5,352,600
Oceaneering International, Inc. (a).... 101,900 2,603,545
Patterson-UTI Energy, Inc. (a)......... 133,900 4,338,360
Precision Drilling Corp. (a)........... 183,900 6,944,064
TETRA Technologies, Inc. (a)........... 67,100 1,989,515
Varco International, Inc. (a).......... 269,900 5,290,040
-------------
39,014,702
-------------
OIL & GAS (3.6%)
Chesapeake Energy Corp................. 393,700 3,976,370
Patina Oil & Gas Corp.................. 106,506 3,424,176
Premcor, Inc. (a)...................... 283,250 6,104,038
XTO Energy, Inc........................ 335,200 6,740,872
-------------
20,245,456
-------------
FINANCIALS (2.1%)
DIVERSIFIED FINANCIALS (0.2%)
iPayment, Inc. (a)..................... 42,200 1,007,314
-------------
INSURANCE (1.9%)
IPC Holdings Ltd. (a).................. 97,010 3,249,835
Philadelphia Consolidated
Holding Corp. (a).................... 3,100 125,240
ProAssurance Corp. (a)................. 82,700 2,232,073
Scottish Annuity & Life Holdings
Ltd.................................. 259,000 5,234,390
-------------
10,841,538
-------------
HEALTH CARE (21.9%)
BIOTECHNOLOGY (3.7%)
Connetics Corp. (a).................... 389,300 5,827,821
ICOS Corp. (a)......................... 127,150 4,672,762
Martek Biosciences Corp. (a)........... 86,100 3,697,134
Neurocrine Biosciences, Inc. (a)....... 80,955 4,042,893
SangStat Medical Corp. (a)............. 173,100 2,265,879
-------------
20,506,489
-------------
HEALTH CARE EQUIPMENT & SUPPLIES (2.5%)
CTI Molecular Imaging, Inc. (a)........ 154,700 2,925,377
Kyphon, Inc. (a)....................... 203,400 3,075,408
Orthofix International NV (a).......... 98,500 3,224,890
Wilson Greatbatch Technologies,
Inc. (a)............................. 127,310 4,595,891
-------------
13,821,566
-------------
HEALTH CARE PROVIDERS & SERVICES (12.5%)
Caremark Rx, Inc. (a).................. 446,622 11,469,253
Cerner Corp. (a)....................... 117,100 2,687,445
Cobalt Corp. (a)....................... 145,400 2,987,970
Community Health Systems,
Inc. (a)............................. 235,500 4,542,795
Coventry Health Care, Inc. (a)......... 142,100 6,559,336
SHARES VALUE
----------- -------------
DaVita, Inc. (a)....................... 324,031 $ 8,677,550
First Health Group Corp. (a)........... 363,356 10,028,626
Henry Schein, Inc. (a)................. 155,251 8,125,837
IMPAC Medical Systems, Inc. (a)........ 136,200 2,843,856
Mid Atlantic Medical Services,
Inc. (a)............................. 168,300 8,802,090
PacifiCare Health Systems,
Inc. (a)............................. 61,200 3,018,996
-------------
69,743,754
-------------
PHARMACEUTICALS (3.2%)
ANDRX Corp. (a)........................ 316,800 6,304,320
AtheroGenics, Inc. (a)................. 185,698 2,772,471
CIMA Labs, Inc. (a).................... 133,900 3,600,571
Trimeris, Inc. (a)..................... 122,200 5,582,096
-------------
18,259,458
-------------
INDUSTRIALS (13.0%)
AIRLINES (0.7%)
Atlantic Coast Airlines Holdings,
Inc. (a)............................. 169,200 2,282,508
SkyWest, Inc........................... 91,000 1,734,460
-------------
4,016,968
-------------
COMMERCIAL SERVICES & SUPPLIES (8.5%)
BISYS Group, Inc. (a).................. 278,000 5,106,860
Career Education Corp. (a)............. 12,570 860,039
Corinthian Colleges, Inc. (a).......... 118,000 5,731,260
Corporate Executive Board Co. (a)...... 147,960 6,039,727
Education Management Corp. (a)......... 211,671 11,256,664
Global Payments, Inc................... 114,636 4,069,578
Resources Connection, Inc. (a)......... 223,900 5,342,254
Stericycle, Inc. (a)................... 90,996 3,501,526
Waste Connections, Inc. (a)............ 151,800 5,320,590
-------------
47,228,498
-------------
CONSTRUCTION & ENGINEERING (2.1%)
Chicago Bridge & Iron Co.,
NY Registered Shares................. 204,400 4,635,792
Jacobs Engineering Group,
Inc. (a)............................. 107,508 4,531,462
URS Corp. (a).......................... 122,390 2,381,709
-------------
11,548,963
-------------
MACHINERY (1.2%)
Albany International Corp.,
Class A.............................. 179,000 4,904,600
Flowserve Corp. (a).................... 101,800 2,002,406
-------------
6,907,006
-------------
ROAD & RAIL (0.5%)
Yellow Corp. (a)....................... 116,480 2,696,512
-------------
See Accompanying Notes to Financial Statements
89
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA SMALL CAP FUND (CONT.)
JUNE 30, 2003 (UNAUDITED)
SHARES VALUE
----------- -------------
INFORMATION TECHNOLOGY (28.7%)
COMMUNICATIONS EQUIPMENT (3.4%)
Corvis Corp. (a)....................... 1,004,500 $ 1,506,750
F5 Networks, Inc. (a).................. 218,900 3,688,465
Foundry Networks, Inc. (a)............. 294,010 4,233,744
NetScreen Technologies, Inc. (a)....... 293,500 6,618,425
Polycom, Inc. (a)...................... 215,100 2,981,286
-------------
19,028,670
-------------
COMPUTERS & PERIPHERALS (1.5%)
Advanced Digital Information
Corp. (a)............................ 169,100 1,689,309
Electronics for Imaging, Inc. (a)...... 334,820 6,793,498
-------------
8,482,807
-------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (3.8%)
Amphenol Corp., Class A (a)............ 330,855 15,490,631
Benchmark Electronics, Inc. (a)........ 191,600 5,893,616
-------------
21,384,247
-------------
INFORMATION TECHNOLOGY CONSULTING & SERVICES (1.9%)
CACI International, Inc.,
Class A (a).......................... 105,000 3,601,500
Cognizant Technology Solutions
Corp. (a)............................ 283,500 6,906,060
-------------
10,507,560
-------------
INTERNET SOFTWARE & SERVICES (1.8%)
Internet Security Systems, Inc. (a).... 319,000 4,622,310
webMethods, Inc. (a)................... 440,700 3,582,891
Websense, Inc. (a)..................... 119,300 1,868,238
-------------
10,073,439
-------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (6.8%)
Credence Systems Corp. (a)............. 498,500 4,222,295
DuPont Photomasks, Inc. (a)............ 64,500 1,214,535
FEI Co. (a)............................ 66,200 1,241,912
Genesis Microchip, Inc. (a)............ 95,300 1,290,362
Integrated Circuit Systems, Inc. (a)... 347,400 3,838,770
Lattice Semiconductor Corp. (a)........ 266,800 2,195,764
Microsemi Corp. (a).................... 417,500 6,680,000
Photronics, Inc. (a)................... 264,186 4,610,046
Pixelworks, Inc. (a)................... 209,000 1,241,460
PMC-Sierra, Inc. (a)................... 146,700 1,720,791
Power Integrations, Inc. (a)........... 22,800 553,771
RF Micro Devices, Inc. (a)............. 713,700 4,296,474
Ultratech, Inc. (a).................... 254,500 4,705,705
-------------
37,811,885
-------------
SHARES VALUE
----------- -------------
SOFTWARE (9.5%)
Activision, Inc. (a)................... 358,200 $ 4,627,944
Amdocs Ltd. (a)........................ 284,900 6,837,600
Autodesk, Inc.......................... 223,400 3,610,144
Citrix Systems, Inc.................... 145,700 2,966,452
Documentum, Inc. (a)................... 286,231 5,630,164
Fair, Isaac and Co., Inc............... 108,900 5,602,905
FileNET Corp. (a)...................... 169,000 3,048,760
Macromedia, Inc. (a)................... 365,800 7,696,432
Mercury Interactive Corp. (a).......... 137,500 5,308,875
Micromuse, Inc. (a).................... 161,600 1,291,184
MicroStrategy, Inc., Class A (a)....... 81,400 2,965,402
National Instruments Corp. (a)......... 71,860 2,714,871
THQ, Inc. (a).......................... 500 9,000
Verity, Inc. (a)....................... 45,500 576,030
-------------
52,885,763
-------------
MATERIALS (1.6%)
CHEMICALS (1.6%)
Minerals Technologies, Inc............. 105,600 5,138,496
OM Group, Inc.......................... 271,500 3,999,195
-------------
9,137,691
-------------
TELECOMMUNICATION SERVICES (0.3%)
WIRELESS TELECOMMUNICATION SERVICES (0.3%)
Dobson Communications Corp.,
Class A (a).......................... 331,200 1,805,040
-------------
UTILITIES (0.5%)
MULTI-UTILITIES & UNREGULATED POWER (0.5%)
Calpine Corp. (a)...................... 431,200 2,845,920
-------------
Total Common Stocks
(Cost of $436,441,002)............... 540,385,537
-------------
SHORT-TERM OBLIGATION (3.3%) PAR
Repurchase agreement with State
Street Bank & Trust Co., dated
06/30/03, due 07/01/03 at 0.950%,
collateralized by a U.S. Treasury
Bond maturing 11/15/10,
market value of $18,793,500
(repurchase proceeds $18,420,486)
(Cost of $18,420,000)................ $18,420,000 18,420,000
-------------
TOTAL INVESTMENTS (100.0%)
(Cost of $454,861,002) (b)........... 558,805,537
-------------
OTHER ASSETS & LIABILITIES, NET (0.0%)..... (109,581)
-------------
NET ASSETS (100.0%)........................ $ 558,695,956
=============
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Non-income producing.
(b) Cost for both financial statement and federal income tax purposes is the
same.
See Accompanying Notes to Financial Statements
90
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA REAL ESTATE EQUITY FUND
JUNE 30, 2003 (UNAUDITED)
SHARES VALUE
----------- -------------
COMMON STOCKS (93.1%)
CONSUMER DISCRETIONARY (5.8%)
HOTELS, RESTAURANTS & LEISURE (5.8%)
Hilton Hotels Corp..................... 1,211,700 $ 15,497,643
Marriott International, Inc.,
Class A.............................. 214,200 8,229,564
Starwood Hotels & Resorts
Worldwide, Inc....................... 854,800 24,438,732
-------------
48,165,939
-------------
FINANCIALS (80.4%)
REAL ESTATE (80.4%)
Alexandria Real Estate Equities,
Inc. ................................ 663,100 29,839,500
American Financial Realty Trust....... 563,600 8,403,276
Apartment Investment &
Management Co., Class A............. 480,600 16,628,760
Archstone-Smith Trust.................. 644,771 15,474,504
AvalonBay Communities, Inc............ 476,400 20,313,696
Boston Properties, Inc................. 473,900 20,756,820
CarrAmerica Realty Corp................ 275,500 7,661,655
Catellus Development Corp. (a)......... 386,500 8,503,000
Centerpoint Properties Trust.......... 257,300 15,759,625
Chelsea Property Group, Inc........... 372,400 15,011,444
Cousins Properties, Inc................ 1,615,050 45,059,895
Duke Realty Corp...................... 704,900 19,419,995
Equity Office Properties Trust........ 934,537 25,241,844
Equity Residential..................... 608,506 15,790,731
First Industrial Realty Trust, Inc. .. 268,300 8,478,280
General Growth Properties, Inc......... 614,960 38,398,102
iStar Financial, Inc................... 1,134,350 41,403,775
Kimco Realty Corp...................... 746,600 28,296,140
Liberty Property Trust................. 390,300 13,504,380
Manufactured Home Communities,
Inc. ................................ 179,900 6,316,289
Newcastle Investment Corp.............. 623,700 12,212,046
Pan Pacific Retail Properties, Inc..... 287,800 11,324,930
Parkway Properties, Inc................ 93,100 3,914,855
Prentiss Properties Trust............. 204,000 6,117,960
ProLogis Trust........................ 1,372,406 37,466,684
Public Storage, Inc.................... 617,032 20,898,874
Reckson Associates Realty Corp........ 234,000 4,881,240
Regency Centers Corp................... 832,500 29,120,850
Rouse Co............................... 778,400 29,657,040
Simon Property Group, Inc. ........... 1,033,256 40,327,982
SL Green Realty Corp.................. 240,200 8,380,578
SHARES VALUE
----------- -------------
St. Joe Co............................. 828,300 $ 25,842,960
Taubman Centers, Inc. ................. 412,700 7,907,332
United Dominion Realty Trust, Inc...... 508,000 8,747,760
Vornado Realty Trust................... 531,100 23,155,960
-------------
670,218,762
-------------
MATERIALS (6.9%)
PAPER & FOREST PRODUCTS (6.9%)
Bowater, Inc........................... 728,900 27,297,305
International Paper Co................. 493,700 17,639,901
MeadWestvaco Corp...................... 508,100 12,550,070
-------------
57,487,276
-------------
Total Common Stocks
(Cost of $642,386,786)............... 775,871,977
-------------
SHORT-TERM OBLIGATION (6.2%) PAR
Repurchase agreement with State
Street Bank & Trust Co., dated
06/30/03, due 07/01/03 at 0.950%
collateralized by U.S. Treasury
Bonds with maturities to 06/30/04,
market value of $52,283,514
(repurchase proceeds $51,257,353)
(Cost of $51,256,000)................ $51,256,000 51,256,000
-------------
TOTAL INVESTMENTS (99.3%)
(Cost of $693,642,786) (b)........... 827,127,977
-------------
OTHER ASSETS & LIABILITIES, NET (0.7%)..... 5,826,525
-------------
NET ASSETS (100.0%)........................ $ 832,954,502
=============
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Non-income producing.
(b) Cost for both financial statement and federal income tax purposes is the
same.
COLUMBIA TECHNOLOGY FUND
JUNE 30, 2003 (UNAUDITED)
SHARES VALUE
----------- -------------
COMMON STOCKS (100.0%)
CONSUMER DISCRETIONARY (9.9%)
HOUSEHOLD DURABLES (0.7%)
Garmin Ltd. (a)........................ 2,500 $ 99,675
-------------
INTERNET & CATALOG RETAIL (0.2%)
1-800-FLOWERS.COM, Inc.,
Class A (a).......................... 3,700 30,488
-------------
LEISURE EQUIPMENT & PRODUCTS (0.9%)
Marvel Enterprises, Inc. (a)........... 6,750 128,925
-------------
See Accompanying Notes to Financial Statements
91
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA TECHNOLOGY FUND (CONT.)
JUNE 30, 2003 (UNAUDITED)
SHARES VALUE
----------- -------------
MEDIA (8.1%)
4Kids Entertainment, Inc. (a).......... 17,000 $ 316,200
AOL Time Warner, Inc. (a).............. 7,500 120,675
Cablevision Systems Corp.,
Class A (a).......................... 7,200 149,472
Catalina Marketing Corp. (a)........... 800 14,120
InterActiveCorp (a).................... 4,000 158,280
Pixar, Inc. (a)........................ 1,700 103,428
TiVo, Inc. (a)......................... 4,000 48,720
XM Satellite Radio Holdings,
Inc., Class A (a).................... 25,900 286,195
-------------
1,197,090
-------------
FINANCIALS (0.1%)
DIVERSIFIED FINANCIALS (0.1%)
Knight Trading Group, Inc. (a)......... 3,000 18,660
-------------
HEALTH CARE (5.4%)
BIOTECHNOLOGY (3.6%)
Aphton Corp. (a)....................... 20,000 164,800
Exact Sciences Corp. (a)............... 9,500 104,120
Gilead Sciences, Inc. (a).............. 1,800 100,044
ICOS Corp. (a)......................... 1,960 72,030
Neurocrine Biosciences, Inc. (a)....... 1,800 89,892
-------------
530,886
-------------
HEALTH CARE EQUIPMENT & SUPPLIES (0.2%)
Varian Medical Systems, Inc. (a)....... 500 28,785
-------------
HEALTH CARE PROVIDERS & SERVICES (0.9%)
WebMD Corp. (a)........................ 12,000 129,960
-------------
PHARMACEUTICALS (0.7%)...................
Pain Therapeutics, Inc. (a)............ 15,000 96,900
-------------
INDUSTRIALS (2.0%)
AEROSPACE & DEFENSE (0.6%)
Mercury Computer Systems,
Inc. (a)............................. 5,200 94,432
-------------
COMMERCIAL SERVICES & SUPPLIES (1.3%)
Alliance Data Systems Corp. (a)........ 4,000 93,600
Global Payments, Inc................... 2,700 95,850
-------------
189,450
-------------
ELECTRICAL EQUIPMENT (0.1%)
RF Monolithics, Inc. (a)............... 3,300 16,071
-------------
SHARES VALUE
----------- -------------
INFORMATION TECHNOLOGY (75.7%)
COMMUNICATIONS EQUIPMENT (11.5%)
ADC Telecommunications,
Inc. (a)............................. 58,000 $ 135,024
ADTRAN, Inc. (a)....................... 2,600 133,354
Advanced Fibre
Communications, Inc. (a)............. 5,300 86,231
Brocade Communications
Systems, Inc. (a).................... 5,900 34,751
Comverse Technology, Inc. (a).......... 12,500 187,875
Foundry Networks, Inc. (a)............. 9,000 129,600
Inter-Tel, Inc......................... 18,000 381,960
Juniper Networks, Inc. (a)............. 9,000 111,330
McData Corp., Class B (a).............. 6,000 87,000
Motorola, Inc.......................... 30,000 282,900
Network Equipment Technologies,
Inc. (a)............................. 3,500 29,470
PC-Tel, Inc. (a)....................... 4,000 47,440
UTStarcom, Inc. (a).................... 1,200 42,684
-------------
1,689,619
-------------
COMPUTERS & PERIPHERALS (7.2%)
Dell Computer Corp. (a)................ 4,650 148,614
Dot Hill Systems Corp. (a)............. 24,000 314,400
Electronics for Imaging, Inc. (a)...... 15,500 314,495
Lexmark International, Inc., (a)....... 1,000 70,770
Neoware Systems, Inc. (a).............. 12,000 184,080
Quantum Corp. (a)...................... 5,000 20,250
-------------
1,052,609
-------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (1.5%)
Pemstar, Inc. (a)...................... 31,000 129,890
Symbol Technologies, Inc. ............. 7,500 97,575
-------------
227,465
-------------
INFORMATION TECHNOLOGY CONSULTING & SERVICES (2.9%)
Affiliated Computer Services,
Inc., Class A (a).................... 1,500 68,595
Computer Sciences Corp. (a)............ 3,450 131,514
Perot Systems Corp., Class A (a)....... 3,800 43,168
Sapient Corp. (a)...................... 50,000 138,500
Wipro Ltd., ADR........................ 1,650 38,033
-------------
419,810
-------------
INTERNET SOFTWARE & SERVICES (9.5%)......
Art Technology Group, Inc. (a)......... 110,000 176,000
Internet Initiative Japan, Inc.,
ADR (a).............................. 5,500 23,980
Internet Security Systems, Inc. (a).... 10,800 156,492
See Accompanying Notes to Financial Statements
92
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -------------
NetEase.com, Inc., ADR (a)............. 7,500 $ 273,450
Radware Ltd. (a)....................... 3,500 59,955
Sify Ltd., ADR (a)..................... 11,600 71,224
SINA Corp., Registered Shares (a)...... 4,000 83,581
Sohu.com, Inc. (a)..................... 10,000 341,600
Yahoo!, Inc. (a)....................... 6,500 212,940
-------------
1,399,222
-------------
OFFICE ELECTRONICS (1.0%)
Canon, Inc., ADR....................... 2,000 91,300
Zebra Technologies Corp.,
Class A (a).......................... 800 60,152
-------------
151,452
-------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (29.1%)
ASML Holding NV, NY
Registered Shares (a)................ 8,000 76,480
Broadcom Corp., Class A (a)............ 6,300 156,933
Cabot Microelectronics Corp. (a)....... 11,250 567,788
Cree, Inc. (a)......................... 8,500 138,380
Infineon Technologies AG, ADR.......... 24,300 233,037
Intersil Corp., Class A (a)............ 24,250 645,292
Marvell Technology Group
Ltd. (a)............................. 11,700 402,129
MIPS Technologies, Inc.,
Class A (a).......................... 28,000 71,680
MIPS Technologies, Inc.,
Class B (a).......................... 72,000 177,840
Mykrolis Corp. (a)..................... 3,000 30,450
NVIDIA Corp. (a)....................... 9,500 218,595
PDF Solutions, Inc. (a)................ 9,000 103,950
PMC-Sierra, Inc. (a)................... 59,000 692,070
QuickLogic Corp. (a)................... 10,000 32,200
Silicon Storage Technology,
Inc. (a)............................. 40,000 167,600
Siliconware Precision Industries
Co., ADR (a)......................... 115,400 369,280
White Electronic Designs
Corp. (a)............................ 18,000 190,620
-------------
4,274,324
-------------
SOFTWARE (13.0%).........................
Agile Software Corp. (a)............... 10,800 104,220
Autodesk, Inc.......................... 5,000 80,800
BEA Systems, Inc. (a).................. 8,100 87,966
BMC Software, Inc. (a)................. 7,200 117,576
Bottomline Technologies, Inc. (a)...... 4,000 32,280
Citrix Systems, Inc. (a)............... 3,000 61,080
Computer Associates
International, Inc................... 9,000 200,520
SHARES VALUE
----------- -------------
Concur Technologies, Inc. (a).......... 25,000 $ 251,750
Informatica Corp. (a).................. 20,000 138,200
Legato Systems, Inc. (a)............... 13,500 113,265
MicroStrategy, Inc., Class A (a)....... 2,750 100,182
Network Associates, Inc. (a)........... 5,310 67,331
Novell, Inc. (a)....................... 23,000 70,840
Oracle Corp. (a)....................... 16,000 192,320
SAP AG, ADR............................ 5,500 160,710
VERITAS Software Corp. (a)............. 4,500 129,015
-------------
1,908,055
-------------
TELECOMMUNICATION SERVICES (6.9%)
DIVERSIFIED TELECOMMUNICATION SERVICES (0.6%)
Time Warner Telecom, Inc.,
Class A (a).......................... 14,000 89,180
-------------
WIRELESS TELECOMMUNICATION SERVICES (6.3%)
Dobson Communications Corp.,
Class A (a).......................... 8,000 43,600
Millicom International
Cellular SA (a)...................... 11,500 301,415
Mobile Telesystems, ADR (a)............ 5,000 295,000
SBA Communications Corp. (a)........... 19,800 60,192
Vimpel-Communications, ADR (a)......... 5,000 232,200
-------------
932,407
-------------
Total Common Stocks
(Cost of $13,044,788)................ 14,705,465
-------------
SHORT-TERM OBLIGATION (1.2%) PAR
Repurchase agreement with State
Street Bank & Trust Co., dated
06/30/03, due 07/01/03 at 0.950%,
collateralized by a U.S. Treasury
Bond maturing 05/15/10,
market value of $175,500
(repurchase proceeds $169,004)
(Cost of $169,000)................... $169,000 169,000
-------------
TOTAL INVESTMENTS (101.2%)
(Cost of $13,213,788) (b).............. 14,874,465
OTHER ASSETS & LIABILITIES, NET (-1.2%).... (169,696)
-------------
NET ASSETS (100.0%)........................ $ 14,704,769
=============
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Non-income producing.
(b) Cost for both financial statement and federal income tax purposes is the
same.
ACRONYM NAME
------- ----
ADR American Depositary Receipt
See Accompanying Notes to Financial Statements
93
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA STRATEGIC VALUE FUND
JUNE 30, 2003 (UNAUDITED)
SHARES VALUE
----------- -------------
COMMON STOCKS (83.2%)
CONSUMER DISCRETIONARY (13.9%)
AUTO COMPONENTS (2.0%)
Modine Manufacturing Co................ 106,000 $ 2,053,220
Nokian Renkaat Oyj..................... 62,000 3,194,935
-------------
5,248,155
-------------
HOTELS, RESTAURANTS & LEISURE (1.3%)
Carnival Corp.......................... 40,000 1,300,400
Fairmont Hotels & Resorts, Inc......... 50,000 1,170,000
McDonald's Corp........................ 50,000 1,103,000
-------------
3,573,400
-------------
HOUSEHOLD DURABLES (1.6%)
Ekornes ASA............................ 100,000 1,337,742
Makita Corp., ADR...................... 50,000 395,000
Matsushita Electric Industrial
Co., Ltd., ADR....................... 50,000 502,500
Newell Rubbermaid, Inc................. 25,100 702,800
Stanley Works.......................... 45,000 1,242,000
-------------
4,180,042
-------------
LEISURE EQUIPMENT & PRODUCTS (0.5%)
Hasbro, Inc............................ 82,500 1,442,925
-------------
MEDIA (3.8%)
AOL Time Warner, Inc. (a).............. 150,000 2,413,500
Belo Corp., Class A.................... 40,000 894,400
Entravision Communications
Corp., Class A (a)................... 125,000 1,418,750
Hughes Electronics Corp................ 100,000 1,281,000
Liberty Media Corp. (a)................ 100,000 1,156,000
Martha Stewart Living
Omnimedia, Inc., Class A (a)......... 50,000 469,500
Media General, Inc., Class A........... 22,500 1,287,000
Metro-Goldwyn-Mayer, Inc. (a).......... 50,000 621,000
Sinclair Broadcast Group, Inc.,
Class A (a).......................... 40,000 464,400
-------------
10,005,550
-------------
MULTI-LINE RETAIL (2.0%)
Dillard's, Inc., Class A............... 100,000 1,347,000
Dollar General Corp.................... 67,500 1,232,550
Stockmann Oyj, Class B................. 70,000 1,239,970
Target Corp............................ 37,500 1,419,000
-------------
5,238,520
-------------
SPECIALTY RETAIL (2.4%)
Borders Group, Inc. (a)................ 30,000 528,300
CarMax, Inc. (a)....................... 50,000 1,507,500
SHARES VALUE
----------- -------------
Circuit City Stores, Inc............... 50,000 $ 440,000
Friedman's, Inc., Class A.............. 150,000 1,705,500
Home Depot, Inc........................ 37,500 1,242,000
Talbots, Inc........................... 32,500 957,125
-------------
6,380,425
-------------
TEXTILES, APPAREL & LUXURY GOODS (0.3%)
Liz Claiborne, Inc..................... 20,000 705,000
-------------
CONSUMER STAPLES (4.3%)
BEVERAGES (1.9%)
Coca-Cola Co........................... 40,000 1,856,400
Coca-Cola Femsa SA de CV, ADR.......... 55,000 1,182,500
Companhia de Bebidas
das Americas, ADR.................... 60,000 1,221,000
Fomento Economico Mexicano
SA de CV, ADR........................ 20,000 824,000
-------------
5,083,900
-------------
FOOD & DRUG RETAILING (0.7%)
Longs Drug Stores Corp. ............... 67,500 1,120,500
United Natural Foods, Inc. (a)......... 30,000 844,200
-------------
1,964,700
-------------
FOOD PRODUCTS (1.5%)
Archer-Daniels-Midland Co.............. 100,000 1,287,000
Del Monte Foods Co. (a)................ 50,000 442,000
Delta and Pine Land Co................. 40,000 879,200
Tyson Foods, Inc., Class A............. 50,000 531,000
Wimm-Bill-Dann Foods, ADR (a).......... 38,100 773,430
-------------
3,912,630
-------------
TOBACCO (0.2%)
Altria Group, Inc...................... 10,000 454,400
-------------
ENERGY (9.2%)
ENERGY EQUIPMENT & SERVICES (4.9%)
Core Laboratories NV (a)............... 75,000 810,000
FMC Technologies, Inc. (a)............. 75,000 1,578,750
GlobalSantaFe Corp..................... 47,500 1,108,650
Grant Prideco, Inc. (a)................ 75,000 881,250
Halliburton Co......................... 67,500 1,552,500
Maverick Tube Corp. (a)................ 50,000 957,500
Newpark Resources, Inc. (a)............ 100,000 548,000
Schlumberger Ltd....................... 40,000 1,902,800
Transocean, Inc. (a)................... 75,000 1,647,750
Universal Compression Holdings,
Inc. (a)............................. 100,000 2,086,000
-------------
13,073,200
-------------
OIL & GAS (4.3%)
Anadarko Petroleum Corp................ 20,000 889,400
BP PLC, ADR............................ 42,500 1,785,850
See Accompanying Notes to Financial Statements
94
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -------------
Chesapeake Energy Corp................. 100,000 $ 1,010,000
China Petroleum and Chemical
Corp., ADR........................... 50,000 1,207,500
Cimarex Energy Co. (a)................. 75,002 1,781,298
ConocoPhillips......................... 35,385 1,939,098
Stelmar Shipping Ltd. (a).............. 50,000 838,000
Unocal Corp............................ 30,000 860,700
YUKOS, ADR............................. 18,750 1,043,438
-------------
11,355,284
-------------
FINANCIALS (11.8%)
BANKS (4.9%)
Banco Bradesco SA, ADR................. 45,000 373,600
Bank One Corp. ........................ 40,000 1,487,200
Banner Corp............................ 20,000 409,800
Columbia Banking Systems, Inc.......... 75,000 1,343,250
Fifth Third Bancorp.................... 37,500 2,150,250
HSBC Holdings PLC, ADR................. 1,453,031 1,477,750
PNC Financial Services Group........... 20,000 976,200
U.S. Bancorp........................... 75,000 1,837,500
Wachovia Corp.......................... 75,000 2,997,000
-------------
13,052,550
-------------
DIVERSIFIED FINANCIALS (3.1%)
Bank of New York Co., Inc.............. 40,000 1,150,000
Citigroup, Inc......................... 57,500 2,461,000
Financial Federal Corp................. 30,000 732,000
Freddie Mac............................ 15,000 761,550
GATX Corp.............................. 37,500 613,125
J.P. Morgan Chase & Co. ............... 50,000 1,709,000
Mellon Financial Corp.................. 30,000 832,500
-------------
8,259,175
-------------
INSURANCE (3.0%)
American International Group,
Inc. ................................ 50,000 2,759,000
Aon Corp............................... 40,000 963,200
Chubb Corp............................. 10,000 600,000
John Hancock Financial Services,
Inc. ................................ 30,000 921,900
Lincoln National Corp.................. 20,000 712,600
St. Paul Companies, Inc................ 20,000 730,200
Wesco Financial Corp. ................. 4,000 1,248,000
-------------
7,934,900
-------------
REAL ESTATE (0.8%)
Crescent Real Estate Equities Co....... 75,000 1,245,750
Post Properties, Inc................... 30,000 795,000
-------------
2,040,750
-------------
SHARES VALUE
----------- -------------
HEALTH CARE (7.4%)
HEALTH CARE EQUIPMENT & SUPPLIES (1.0%)
Baxter International, Inc.............. 20,000 $ 520,000
Millipore Corp. (a).................... 50,000 2,218,500
-------------
2,738,500
-------------
HEALTH CARE PROVIDERS & SERVICES (0.7%)
McKesson Corp.......................... 40,000 1,429,600
Service Corp. International (a)........ 75,000 290,250
-------------
1,719,850
-------------
PHARMACEUTICALS (5.7%)
Abbott Laboratories.................... 40,000 1,750,400
Bristol-Myers Squibb Co................ 77,500 2,104,125
Elan Corp. PLC, ADR (a)................ 50,000 282,000
Gedeon Richter Ltd..................... 20,000 1,412,043
Mylan Laboratories, Inc................ 60,000 2,086,200
Novartis AG, ADR....................... 40,000 1,592,400
Pfizer, Inc............................ 50,000 1,707,500
Schering AG, ADR....................... 15,000 726,900
Schering-Plough Corp................... 65,000 1,209,000
Shire Pharmaceuticals Group
PLC, ADR (a)......................... 50,000 985,000
Wyeth.................................. 30,000 1,366,500
-------------
15,222,068
-------------
INDUSTRIALS (12.1%)
AEROSPACE & DEFENSE (0.9%)
Honeywell International, Inc........... 20,000 537,000
Northrop Grumman Corp. ................ 10,000 862,900
Raytheon Co............................ 30,000 985,200
-------------
2,385,100
-------------
AIR FREIGHT & LOGISTICS (0.4%)
Ryder System, Inc...................... 40,600 1,040,172
-------------
COMMERCIAL SERVICES & SUPPLIES (2.4%)
Cendant Corp........................... 125,000 2,290,000
Copart, Inc. (a)....................... 86,400 816,480
G&K Services, Inc., Class A............ 30,000 888,000
Ionics, Inc. (a)....................... 47,500 1,062,575
Waste Management, Inc. ................ 55,000 1,324,950
-------------
6,382,005
-------------
CONSTRUCTION & ENGINEERING (0.3%)
Chicago Bridge & Iron Co.,
NY Registered Shares................. 40,000 907,200
-------------
ELECTRICAL EQUIPMENT (1.4%)
Cooper Industries Ltd., Class A........ 40,000 1,652,000
Emerson Electric Co.................... 22,500 1,149,750
Rockwell Automation, Inc............... 35,000 834,400
-------------
3,636,150
-------------
See Accompanying Notes to Financial Statements
95
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA STRATEGIC VALUE FUND (CONT.)
JUNE 30, 2003 (UNAUDITED)
SHARES VALUE
----------- -------------
INDUSTRIAL CONGLOMERATES (2.4%)
3M Co.................................. 35,000 $ 4,514,300
Textron, Inc........................... 50,000 1,951,000
-------------
6,465,300
-------------
MACHINERY (3.6%)
Caterpillar, Inc....................... 50,000 2,783,000
Eaton Corp............................. 30,000 2,358,300
Flowserve Corp. (a).................... 40,000 786,800
Joy Global, Inc. (a)................... 50,000 738,500
Navistar International Corp............ 40,000 1,305,200
Timken Co.............................. 50,000 875,500
Trinity Industries, Inc................ 30,000 555,300
-------------
9,402,600
-------------
MARINE (0.4%)
Alexander & Baldwin, Inc............... 40,000 1,061,200
-------------
ROAD & RAIL (0.3%)
Kansas City Southern (a)............... 65,000 781,950
-------------
INFORMATION TECHNOLOGY (10.2%)
COMMUNICATIONS EQUIPMENT (2.4%)
Andrew Corp. (a)....................... 30,000 276,000
Comverse Technology, Inc. (a).......... 100,000 1,503,000
Corning, Inc. (a)...................... 100,000 739,000
Lucent Technologies, Inc. (a).......... 100,000 203,000
Motorola, Inc.......................... 67,500 636,525
Nortel Networks Corp. (a).............. 100,000 270,000
Polycom, Inc. (a)...................... 112,500 1,559,250
Telefonaktiebolaget LM Ericsson,
ADR.................................. 50,000 531,500
Tellabs, Inc. (a)...................... 100,000 657,000
-------------
6,375,275
-------------
COMPUTERS & PERIPHERALS (0.9%)
SanDisk Corp. (a)...................... 50,000 2,017,500
Sun Microsystems, Inc. (a)............. 100,000 460,000
-------------
2,477,500
-------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (1.9%)
Celestica, Inc. (a).................... 75,000 1,182,000
Flextronics International Ltd. (a)..... 75,000 779,250
Methode Electronics, Inc., Class A..... 100,000 1,075,000
Solectron Corp. (a).................... 125,000 467,500
Waters Corp. (a)....................... 50,000 1,456,500
-------------
4,960,250
-------------
IT SERVICES (0.6%)
Concord EFS, Inc. (a).................. 50,000 736,000
Convergys Corp. (a).................... 50,000 800,000
-------------
1,536,000
-------------
SHARES VALUE
----------- -------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (3.5%)
Atmel Corp. (a)........................ 100,000 $ 253,000
Axcelis Technologies, Inc. (a)......... 100,000 612,000
FEI Co. (a)............................ 60,000 1,125,600
Micron Technology, Inc................. 67,500 785,025
Mykrolis Corp. (a)..................... 100,000 1,015,000
Samsung Electronics Co.,
Ltd., GDR (b)........................ 12,500 1,859,375
Teradyne, Inc. (a)..................... 87,500 1,514,625
Texas Instruments, Inc................. 125,000 2,200,000
-------------
9,364,625
-------------
SOFTWARE (0.9%)
Autodesk, Inc.......................... 75,000 1,212,000
SAP AG, ADR............................ 37,500 1,095,750
-------------
2,307,750
-------------
MATERIALS (8.1%)
CHEMICALS (3.5%)
A. Schulman, Inc....................... 75,000 1,204,500
Calgon Carbon Corp..................... 40,000 230,000
Dow Chemical Co........................ 50,000 1,548,000
Eastman Chemical Co.................... 50,000 1,583,500
H.B. Fuller Co......................... 40,000 880,800
Olin Corp.............................. 50,000 855,000
Potash Corp. of Saskatchewan,
Inc.................................. 32,500 2,080,000
Rohm and Haas Co....................... 30,000 930,900
-------------
9,312,700
-------------
CONSTRUCTION MATERIALS (0.3%)
Martin Marietta Materials, Inc......... 20,000 672,200
-------------
CONTAINERS & PACKAGING (1.6%)
Sealed Air Corp. (a)................... 47,500 2,263,850
Smurfit-Stone Container
Corp. (a)............................ 55,000 716,650
Temple-Inland, Inc..................... 32,500 1,394,575
-------------
4,375,075
-------------
METALS & MINING (0.9%)
Barrick Gold Corp. .................... 50,000 895,000
CONSOL Energy, Inc..................... 62,500 1,421,250
-------------
2,316,250
-------------
PAPER & FOREST PRODUCTS (1.8%)
Abitibi-Consolidated, Inc.............. 50,000 320,500
Georgia-Pacific Corp................... 75,000 1,421,250
MeadWestvaco Corp...................... 37,500 926,250
Potlatch Corp.......................... 30,000 772,500
Votorantim Celulose e Papel
SA, ADR.............................. 75,000 1,450,500
-------------
4,891,000
-------------
See Accompanying Notes to Financial Statements
96
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -------------
TELECOMMUNICATION SERVICES (4.3%)
DIVERSIFIED TELECOMMUNICATION SERVICES (2.3%)
AT&T Corp. (a)......................... 57,500 $ 1,106,875
PT Telekomunikasi
Indonesia, ADR....................... 150,000 1,680,000
SBC Communications, Inc................ 75,000 1,916,250
Verizon Communications, Inc............ 35,000 1,380,750
-------------
6,083,875
-------------
WIRELESS TELECOMMUNICATION SERVICES (2.0%)
AT&T Wireless Services, Inc. (a)....... 100,000 821,000
Millicom International Cellular
SA (a)............................... 45,000 1,179,450
Vimpel-Communications, ADR (a)......... 70,000 3,250,800
-------------
5,251,250
-------------
UTILITIES (1.9%)
ELECTRIC UTILITIES (0.7%)
TECO Energy, Inc....................... 100,000 1,199,000
Xcel Energy, Inc....................... 50,000 752,000
-------------
1,951,000
-------------
MULTI-UTILITIES & UNREGULATED POWER (0.9%)
Aquila, Inc............................ 100,000 258,000
Duke Energy Corp....................... 42,500 847,875
El Paso Corp........................... 50,000 404,000
Mirant Corp. (a)....................... 50,000 145,000
Westar Energy, Inc..................... 40,000 649,200
-------------
2,304,075
-------------
WATER UTILITIES (0.3%)
California Water Service Group......... 30,000 843,600
-------------
Total Common Stocks
(Cost of $192,724,545)............... 220,670,026
-------------
INVESTMENT MANAGEMENT COMPANY (0.5%)
Japan Smaller Capitalization
Fund, Inc.
(Cost of $984,539)................... 150,000 1,240,500
-------------
SHORT-TERM OBLIGATION (16.4%) PAR
Repurchase agreement with State
Street Bank & Trust Co., dated
06/30/03, due 07/01/03 at 0.950%,
collateralized by a U.S. Treasury
Note maturing 12/31/04,
market value of $44,450,900
(repurchase proceeds $43,580,150)
(Cost of $43,579,000)................ $43,579,000 43,579,000
-------------
VALUE
-----
TOTAL INVESTMENTS (100.1%)
(Cost of $237,288,084) (c)........... $ 265,489,526
-------------
OTHER ASSETS & LIABILITIES, NET (-0.1%).... (288,328)
-------------
NET ASSETS (100.0%)........................ $ 265,201,198
=============
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Non-income producing.
(b) This security is exempt from registration under Rule 144A of the Securities
Act of 1933 and may be resold in transactions exempt from registration,
normally to qualified institutional buyers. At June 30, 2003, the value of
this security amounted to $1,859,375, which represents 0.7% of net assets.
(c) Cost for both financial statement and federal income tax purposes is the
same.
ACRONYM NAME
------- ----
ADR American Depositary Receipt
GDR Global Depositary Receipt
COLUMBIA BALANCED FUND
JUNE 30, 2003 (UNAUDITED)
SHARES VALUE
----------- -------------
COMMON STOCKS (61.5%)
CONSUMER DISCRETIONARY (10.1%)
HOTELS, RESTAURANTS & LEISURE (3.2%)
Carnival Corp.......................... 68,300 $ 2,220,433
Hilton Hotels Corp..................... 156,675 2,003,873
McDonald's Corp........................ 335,200 7,394,512
Royal Caribbean Cruises Ltd............ 204,200 4,729,272
Yum! Brands, Inc. (a).................. 141,900 4,194,564
-------------
20,542,654
-------------
INTERNET & CATALOG RETAIL (0.2%)
eBay, Inc. (a)......................... 10,500 1,093,890
-------------
MEDIA (2.4%)
AOL Time Warner, Inc. (a).............. 296,212 4,766,051
Clear Channel Communications,
Inc. (a)............................. 46,825 1,984,912
Comcast Corp., Class A (a)............. 69,556 2,099,200
Interpublic Group of Companies,
Inc. ................................ 88,600 1,185,468
Liberty Media Corp., Class A (a)....... 343,579 3,971,773
Viacom, Inc., Class B (a).............. 43,400 1,894,844
-------------
15,902,248
-------------
MULTI-LINE RETAIL (3.1%)
Dollar General Corp.................... 169,250 3,090,505
Kohl's Corp. (a)....................... 125,520 6,449,218
Target Corp. .......................... 171,500 6,489,560
Wal-Mart Stores, Inc................... 70,080 3,761,194
-------------
19,790,477
-------------
See Accompanying Notes to Financial Statements
97
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA BALANCED FUND (CONT.)
JUNE 30, 2003 (UNAUDITED)
SHARES VALUE
----------- -------------
SPECIALTY RETAIL (1.2%)
Home Depot, Inc........................ 189,000 $ 6,259,680
Lowe's Companies, Inc.................. 43,150 1,853,293
-------------
8,112,973
-------------
CONSUMER STAPLES (2.8%)
BEVERAGES (0.6%)
PepsiCo, Inc........................... 88,975 3,959,388
-------------
FOOD PRODUCTS (0.2%)
Hershey Foods Corp. ................... 13,900 968,274
-------------
HOUSEHOLD PRODUCTS (0.2%)
Procter & Gamble Co.................... 13,625 1,215,077
-------------
PERSONAL PRODUCTS (0.7%)
Alberto-Culver Co., Class B............ 63,125 3,225,688
Gillette Co............................ 44,725 1,424,938
-------------
4,650,626
-------------
TOBACCO (1.1%)
Altria Group, Inc...................... 159,675 7,255,632
-------------
ENERGY (4.3%)
ENERGY EQUIPMENT & SERVICES (1.5%)
BJ Services Co. (a).................... 50,000 1,868,000
ENSCO International, Inc............... 76,850 2,067,265
Nabors Industries Ltd. (a)............. 43,600 1,724,380
Noble Corp. (a)........................ 50,825 1,743,298
Schlumberger Ltd....................... 55,500 2,640,135
-------------
10,043,078
-------------
OIL & GAS (2.8%)
Apache Corp............................ 71,404 4,645,544
ConocoPhillips......................... 41,450 2,271,460
Devon Energy Corp...................... 38,150 2,037,210
EOG Resources, Inc..................... 35,175 1,471,722
Equitable Resources, Inc............... 38,900 1,584,786
Exxon Mobil Corp. ..................... 131,884 4,735,954
Pioneer Natural Resources Co........... 39,300 1,025,730
-------------
17,772,406
-------------
FINANCIALS (13.0%)
BANKS (2.9%)
Bank of America Corp................... 110,610 8,741,508
Bank One Corp.......................... 95,575 3,553,478
Fifth Third Bancorp.................... 34,875 1,999,733
U.S. Bancorp........................... 169,300 4,147,850
-------------
18,442,569
-------------
SHARES VALUE
----------- -------------
DIVERSIFIED FINANCIALS (6.8%)
American Express Co.................... 198,425 $ 8,296,149
Citigroup, Inc......................... 399,093 17,081,180
Fannie Mae............................. 37,425 2,523,942
Goldman Sachs Group, Inc............... 33,300 2,788,875
J.P. Morgan Chase & Co................. 206,815 7,068,937
Merrill Lynch & Co., Inc............... 65,200 3,043,536
Morgan Stanley......................... 29,375 1,255,781
Principal Financial Group, Inc......... 61,500 1,983,375
-------------
44,041,775
-------------
INSURANCE (3.3%)
American International Group, Inc...... 99,862 5,510,385
Aon Corp............................... 66,000 1,589,280
Chubb Corp............................. 82,700 4,962,000
Hartford Financial Services
Group, Inc........................... 81,800 4,119,448
Marsh & McLennan Companies,
Inc. ................................ 65,000 3,319,550
Prudential Financial, Inc.............. 60,900 2,049,285
-------------
21,549,948
-------------
HEALTH CARE (10.6%)
BIOTECHNOLOGY (0.9%)
Amgen, Inc. (a)........................ 62,733 4,167,981
Biogen, Inc. (a)....................... 35,200 1,337,600
IDEC Pharmaceuticals Corp. (a)......... 17,800 605,200
-------------
6,110,781
-------------
HEALTH CARE EQUIPMENT & SUPPLIES (0.9%)
Applera Corp........................... 81,300 1,547,139
Becton, Dickinson & Co................. 102,500 3,982,125
-------------
5,529,264
-------------
HEALTH CARE PROVIDERS & SERVICES (2.0%)
Aetna, Inc............................. 33,500 2,016,700
Caremark Rx, Inc. (a).................. 98,200 2,521,776
McKesson Corp.......................... 84,450 3,053,983
UnitedHealth Group, Inc................ 70,800 3,557,700
WellPoint Health Networks, Inc......... 24,375 2,054,812
-------------
13,204,971
-------------
PHARMACEUTICALS (6.8%)
Abbott Laboratories.................... 88,910 3,890,702
Bristol-Myers Squibb Co................ 168,544 4,575,970
Johnson & Johnson...................... 136,125 7,037,663
Merck & Co., Inc....................... 100,950 6,112,522
Pfizer, Inc............................ 490,790 16,760,479
Shire Pharmaceuticals Group
PLC, ADR (a)......................... 75,200 1,481,440
Wyeth.................................. 87,600 3,990,180
-------------
43,848,956
-------------
See Accompanying Notes to Financial Statements
98
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
SHARES VALUE
----------- -------------
INDUSTRIALS (6.1%)
AEROSPACE & DEFENSE (1.9%)
L-3 Communications Holdings,
Inc. (a)............................. 97,500 $ 4,240,275
Lockheed Martin Corp................... 84,400 4,014,908
Northrop Grumman Corp. ................ 46,800 4,038,372
-------------
12,293,555
-------------
AIR FREIGHT & LOGISTICS (0.3%)
FedEx Corp. ........................... 31,825 1,974,105
-------------
COMMERCIAL SERVICES & SUPPLIES (1.1%)
First Data Corp........................ 45,825 1,898,988
Waste Management, Inc. ................ 214,125 5,158,271
-------------
7,057,259
-------------
INDUSTRIAL CONGLOMERATES (2.2%)
3M Co.................................. 29,800 3,843,604
General Electric Co.................... 364,675 10,458,879
-------------
14,302,483
-------------
MACHINERY (0.6%)
Deere & Co. ........................... 87,600 4,003,320
-------------
INFORMATION TECHNOLOGY (10.4%)
COMMUNICATIONS EQUIPMENT (1.5%)
Cisco Systems, Inc. (a)................ 216,385 3,611,466
Emulex Corp. (a)....................... 114,380 2,604,433
QUALCOMM, Inc.......................... 97,700 3,492,775
-------------
9,708,674
-------------
COMPUTERS & PERIPHERALS (0.4%)
EMC Corp. (a).......................... 121,700 1,274,199
Hewlett-Packard Co..................... 66,600 1,418,580
-------------
2,692,779
-------------
INTERNET SOFTWARE & SERVICES (0.6%)
Yahoo!, Inc. (a)....................... 108,000 3,538,080
-------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (3.9%)
Broadcom Corp., Class A (a)............ 74,400 1,853,304
Intel Corp............................. 128,675 2,674,381
Intersil Corp., Class A (a)............ 107,400 2,857,914
Linear Technology Corp................. 83,400 2,686,314
Marvell Technology Group Ltd. (a)...... 90,700 3,117,359
Maxim Integrated Products, Inc......... 14,650 500,883
National Semiconductor Corp. (a)....... 83,500 1,646,620
NVIDIA Corp. (a)....................... 68,600 1,578,486
Silicon Laboratories, Inc. (a)......... 87,300 2,325,672
Taiwan Semiconductor
Manufacturing Co., Ltd., ADR (a)..... 266,990 2,691,259
Texas Instruments, Inc................. 55,900 983,840
Vitesse Semiconductor Corp. (a)........ 180,900 890,028
Xilinx, Inc. (a)....................... 57,100 1,445,201
-------------
25,251,261
-------------
SHARES VALUE
----------- -------------
SOFTWARE (4.0%)
BEA Systems, Inc. (a).................. 124,600 $ 1,353,156
Computer Associates
International, Inc................... 75,500 1,682,140
Mercury Interactive Corp. (a).......... 54,400 2,100,384
Microsoft Corp......................... 558,475 14,302,545
Oracle Corp. (a)....................... 152,900 1,837,858
Symantec Corp. (a)..................... 46,175 2,025,235
VERITAS Software Corp. (a)............. 89,700 2,571,699
-------------
25,873,017
-------------
MATERIALS (0.3%)
CHEMICALS (0.3%)
Praxair, Inc........................... 33,850 2,034,385
-------------
TELECOMMUNICATION SERVICES (2.4%)
DIVERSIFIED TELECOMMUNICATION SERVICES (2.1%)
BellSouth Corp......................... 164,100 4,369,983
SBC Communications, Inc................ 163,525 4,178,064
Verizon Communications, Inc............ 132,700 5,235,015
-------------
13,783,062
-------------
WIRELESS TELECOMMUNICATION SERVICES (0.3%)
Vodafone Group PLC, ADR................ 109,950 2,160,517
-------------
UTILITIES (1.5%)
MULTI-UTILITIES & UNREGULATED POWER (1.5%)
Ameren Corp............................ 34,500 1,521,450
Consolidated Edison, Inc............... 63,700 2,756,936
DTE Energy Co.......................... 107,300 4,146,072
Pinnacle West Capital Corp............. 25,800 966,210
-------------
9,390,668
-------------
Total Common Stocks
(Cost of $341,759,709)............... 398,098,152
-------------
PREFERRED STOCK (0.3%)
CONSUMER DISCRETIONARY (0.3%)
MEDIA (0.3%)
News Corp., Ltd., ADR
(Cost of $1,811,447)................. 85,825 2,149,916
-------------
U.S. GOVERNMENT & AGENCY
SECURITIES (14.6%) PAR
U.S. TREASURY NOTES & BONDS (6.0%)
U.S. Treasury Bonds:
6.250% 08/15/23...................... $ 6,675,000 8,178,444
8.875% 08/15/17...................... 2,970,000 4,493,981
U.S. Treasury Inflation Index Note,
3.625% 01/15/08...................... 10,996,644 12,340,302
See Accompanying Notes to Financial Statements
99
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA BALANCED FUND (CONT.)
JUNE 30, 2003 (UNAUDITED)
PAR VALUE
----------- -------------
U.S. Treasury Notes:
3.500% 11/15/06...................... $ 9,725,000 $ 10,254,186
4.875% 02/15/12...................... 3,250,000 3,613,597
-------------
38,880,510
-------------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (GNMA) (0.4%)
7.000% 10/15/31 - 05/15/32............. 2,595,610 2,742,423
-------------
FEDERAL HOME LOAN MORTGAGE
CORP. (FHLMC) (2.6%)
5.000% TBA (b)......................... 6,350,000 6,558,357
6.000% 03/01/17 - 08/01/17............. 5,571,127 5,795,427
6.500% 05/01/32 - 08/01/32............. 3,917,682 4,078,064
-------------
16,431,848
-------------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION (FNMA) (2.4%)
5.000% TBA (b)......................... 13,760,000 14,215,800
5.928% 07/01/32........................ 1,459,362 1,512,719
-------------
15,728,519
-------------
FEDERAL HOUSING ADMINISTRATION (FHA) (0.2%)
FHA Insured Project,
Pool #53-43077,
9.125% 03/25/33...................... 1,555,180 1,552,636
-------------
AGENCY COLLATERALIZED MORTGAGE
OBLIGATIONS (3.0%)
FHLMC Multiclass Mtg. Partn. Ctfs., Gtd.:
Series 2235, Class VN,
7.000% 06/15/14...................... 3,980,000 4,085,316
Series 2462, Class JE,
6.500% 11/15/30...................... 1,810,000 1,884,316
FNMA Gtd. Remic Pass Thru Ctfs.:
Remic Tr. 2001-55, Class PC,
6.500% 10/25/31...................... 5,090,000 5,294,918
Remic Tr. 2001-56, Class KD,
6.500% 07/25/30...................... 2,260,000 2,321,088
Remic Tr. 2002-8, Class PD,
6.500% 07/25/30...................... 3,570,000 3,696,880
Remic Tr. 2002-27, Class OG,
6.500% 12/25/30...................... 1,820,000 1,881,737
-------------
19,164,255
-------------
Total U.S. Government & Agency Securities
(Cost of $91,716,704)................ 94,500,191
-------------
CORPORATE NOTES & BONDS (13.6%)
INDUSTRIALS (6.8%)
Abitibi-Consolidated, Inc.,
6.000% 06/20/13...................... 100,000 95,176
PAR VALUE
----------- -------------
Advance PCS,
8.500% 04/01/08...................... $ 250,000 $ 268,750
Airgas, Inc.,
9.125% 10/01/11...................... 50,000 55,625
Alcan, Inc.,
7.250% 03/15/31...................... 675,000 842,476
Allied Waste North America, Inc.,
10.000% 08/01/09..................... 250,000 265,625
American Axle & Manufacturing, Inc.,
9.750% 03/01/09...................... 250,000 268,750
American Home Products Corp.,
6.250% 03/15/06...................... 1,370,000 1,520,056
AmerisourceBergen Corp.,
8.125% 09/01/08...................... 125,000 137,500
Anadarko Finance Co.,
7.500% 05/01/31...................... 1,250,000 1,575,438
Anthem, Inc.,
6.800% 08/01/12...................... 925,000 1,081,776
Apogent Technologies, Inc.,
6.500% 05/15/13 (c).................. 25,000 25,813
Arch Western Finance,
6.750% 07/01/13 (c).................. 155,000 159,650
AT&T Corp.,
8.500% 11/15/31...................... 650,000 739,591
Ball Corp.,
7.750% 08/01/06...................... 250,000 273,750
Boeing Co.,
6.125% 02/15/33...................... 850,000 890,659
British Sky Broadcasting Group,
7.300% 10/15/06...................... 100,000 112,000
Canadian National Railway Co.:
6.450% 07/15/06...................... 300,000 335,899
7.195% 01/02/16...................... 891,544 1,074,092
Canandaigua Brands, Inc.,
8.500% 03/01/09...................... 250,000 262,500
Cascades, Inc.,
7.250% 02/15/13 (c).................. 115,000 121,037
Chesapeake Energy Corp.:
7.500% 09/15/13 (c).................. 145,000 154,063
8.375% 11/01/08...................... 50,000 54,125
9.000% 08/15/12...................... 20,000 22,300
Cinemark USA, Inc.,
9.000% 02/01/13 (c).................. 145,000 157,325
Coca-Cola Enterprises, Inc.,
6.750% 01/15/38...................... 1,045,000 1,234,059
Comcast Corp.,
7.050% 03/15/33...................... 375,000 418,143
Coors Brewing Co.,
6.375% 05/15/12...................... 900,000 1,034,626
Cott Beverages, Inc.,
8.000% 12/15/11...................... 250,000 270,000
See Accompanying Notes to Financial Statements
100
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
PAR VALUE
----------- -------------
Cox Enterprises, Inc.,
8.000% 02/15/07 (c).................. $ 1,050,000 $ 1,230,611
CSC Holdings, Inc.:
8.125% 08/15/09...................... 25,000 25,875
9.875% 02/15/13...................... 130,000 135,850
DaimlerChrysler NA Holding Corp.,
8.500% 01/18/31...................... 475,000 561,128
Dex Media East LLC,
12.125% 11/15/12..................... 75,000 88,687
Diageo Capital PLC,
3.375% 03/20/08...................... 1,100,000 1,125,488
DirecTV Holdings,
8.375% 03/15/13 (c).................. 95,000 105,925
EquiStar Chemical:
10.125% 09/01/08..................... 25,000 25,750
10.625% 05/01/11 (c)................. 25,000 25,625
Ethyl Corp.,
8.875% 05/01/10 (c).................. 50,000 51,000
Extended Stay America, Inc.,
9.875% 06/15/11...................... 150,000 161,250
General Electric Co.,
5.000% 02/01/13...................... 2,500,000 2,645,682
Grant Prideco, Inc.:
9.000% 12/15/09...................... 220,000 244,200
9.625% 12/01/07...................... 15,000 16,575
Harrah's Operating Co., Inc.,
7.875% 12/15/05...................... 125,000 135,938
Hasbro, Inc.,
8.500% 03/15/06...................... 100,000 109,500
HCA, Inc.,
6.910% 06/15/05...................... 200,000 212,178
Houghton Mifflin Co.,
9.875% 02/01/13 (c).................. 205,000 222,425
International Business Machines Corp.,
5.875% 11/29/32...................... 1,700,000 1,830,079
Iron Mountain, Inc.,
7.750% 01/15/15...................... 250,000 264,375
John Deere Capital Corp.,
3.900% 01/15/08...................... 550,000 571,986
K & F Industries, Inc.,
9.625% 12/15/10...................... 145,000 160,950
KB Home,
8.625% 12/15/08...................... 250,000 283,750
Key Energy Services, Inc.,
6.375% 05/01/13...................... 80,000 81,200
L-3 Communications Corp.,
7.625% 06/15/12...................... 175,000 192,500
Lamar Media Corp.,
8.625% 09/15/07...................... 125,000 129,688
Lear Corp.,
7.960% 05/15/05...................... 250,000 266,250
PAR VALUE
----------- -------------
LIN Television Corp.,
6.500% 05/15/13 (c).................. $ 125,000 $ 124,688
Lowe's Companies, Inc.,
6.500% 03/15/29...................... 700,000 796,471
Mediacom LLC,
9.500% 01/15/13...................... 200,000 211,500
Newell Rubbermaid, Inc.,
4.000% 05/01/10...................... 950,000 969,456
Nextel Communications, Inc.:
9.750% 10/31/07...................... 150,000 155,250
10.650% 09/15/07..................... 100,000 103,250
Occidental Petroleum Corp.,
4.250% 03/15/10...................... 775,000 809,728
Offshore Logistics, Inc.,
6.125% 06/15/13 (c).................. 205,000 205,513
Omnicare, Inc.,
8.125% 03/15/11...................... 250,000 271,250
Owens-Illinois, Inc.,
7.350% 05/15/08...................... 150,000 150,000
Park Place Entertainment Corp.,
9.375% 02/15/07...................... 250,000 276,875
Peabody Energy Corp.,
6.875% 03/15/13 (c).................. 150,000 157,125
PepsiAmericas, Inc.,
3.875% 09/12/07...................... 1,450,000 1,499,803
Premier Parks, Inc.,
9.750% 06/15/07...................... 75,000 74,250
Province Healthcare Co.,
7.500% 06/01/13...................... 50,000 49,250
R.H. Donnelley Financial Corp.:
8.875% 12/15/10 (c).................. 30,000 33,150
10.875% 12/15/12 (c)................. 215,000 250,475
Rogers Cable, Inc.:
6.250% 06/15/13 (c).................. 50,000 49,875
7.875% 05/01/12...................... 185,000 201,650
Scotts Co.,
8.625% 01/15/09...................... 240,000 256,800
Select Medical Corp.,
9.500% 06/15/09...................... 275,000 298,719
Silgan Holdings, Inc.,
9.000% 06/01/09...................... 250,000 258,750
Sinclair Broadcasting Group, Inc.:
8.000% 03/15/12...................... 30,000 32,025
8.000% 03/15/12 (c).................. 190,000 202,825
Smurfit-Stone Container Corp.:
8.250% 10/01/12...................... 55,000 58,988
9.750% 01/01/11...................... 35,000 38,325
Speedway Motorsports, Inc.,
6.750% 06/01/13 (c).................. 100,000 103,500
Starwood Hotels & Resorts Worldwide, Inc.,
7.375% 05/01/07...................... 100,000 105,250
See Accompanying Notes to Financial Statements
101
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA BALANCED FUND (CONT.)
JUNE 30, 2003 (UNAUDITED)
PAR VALUE
----------- -------------
Station Casinos, Inc.:
8.875% 12/01/08...................... $ 50,000 $ 52,500
9.875% 07/01/10...................... 240,000 264,000
Synagro Technologies, Inc.,
9.500% 04/01/09...................... 50,000 53,500
TCI Communications, Inc.,
7.250% 08/01/05...................... 685,000 746,166
Teekay Shipping Corp.,
8.875% 07/15/11...................... 300,000 328,875
Time Warner, Inc.,
7.975% 08/15/04...................... 1,153,000 1,223,414
Toll Corp.,
7.750% 09/15/07...................... 250,000 259,688
Triad Hospitals, Inc.,
8.750% 05/01/09...................... 275,000 292,531
Union Pacific Corp.,
3.875% 02/15/09...................... 1,000,000 1,023,326
United Rentals, Inc.,
10.750% 04/15/08..................... 250,000 273,125
United Technologies Corp.,
6.500% 06/01/09...................... 1,685,000 1,990,426
Universal Compression, Inc.,
7.250% 05/15/10 (c).................. 50,000 51,750
Verizon Global Funding Corp.,
7.250% 12/01/10...................... 1,800,000 2,165,513
Viacom, Inc.,
5.500% 05/15/33...................... 425,000 424,040
Vintage Petroleum, Inc.,
9.750% 06/30/09...................... 160,000 172,000
Wal-Mart Stores, Inc.,
4.375% 07/12/07...................... 1,570,000 1,683,991
Westport Resources Corp.,
8.250% 11/01/11...................... 265,000 290,175
XTO Energy, Inc.,
7.500% 04/15/12...................... 300,000 340,500
Yum! Brands, Inc.,
8.500% 04/15/06...................... 250,000 280,000
-------------
44,015,530
-------------
FINANCIALS (4.6%)
American General Finance Corp.,
5.375% 09/01/09...................... 475,000 519,695
Bank of America Corp.,
7.800% 02/15/10...................... 2,225,000 2,746,923
Bank One Corp.,
2.625% 06/30/08...................... 1,300,000 1,279,548
CIT Group, Inc.,
7.250% 08/15/05...................... 890,000 972,280
PAR VALUE
----------- -------------
Citigroup, Inc.,
7.250% 10/01/10...................... $ 1,565,000 $ 1,898,935
Ford Motor Credit Co.,
7.375% 10/28/09...................... 2,490,000 2,614,246
General Motors Acceptance Corp.,
4.500% 07/15/06...................... 1,875,000 1,885,256
Goldman Sachs Group, Inc.,
6.125% 02/15/33...................... 675,000 726,414
Health Care Property Investors, Inc.,
6.450% 06/25/12...................... 1,200,000 1,307,930
Health Care REIT, Inc.,
7.500% 08/15/07...................... 150,000 160,272
Household Finance Corp.,
6.400% 06/17/08...................... 1,250,000 1,428,434
iStar Financial, Inc.,
8.750% 08/15/08...................... 50,000 54,500
Lehman Brothers Holdings, Inc.,
4.000% 01/22/08...................... 1,325,000 1,382,354
Merrill Lynch & Co., Inc.,
2.470% 03/10/06...................... 1,250,000 1,262,441
Morgan Stanley:
4.250% 05/15/10...................... 375,000 386,557
6.100% 04/15/06...................... 700,000 771,123
SLM Corp.,
5.125% 08/27/12...................... 1,900,000 2,022,615
US Bank NA,
6.375% 08/01/11...................... 2,050,000 2,396,956
Wachovia Corp.,
4.950% 11/01/06...................... 2,100,000 2,288,282
Washington Mutual, Inc.,
5.625% 01/15/07...................... 1,275,000 1,406,428
Wells Fargo & Co.,
7.250% 08/24/05...................... 2,000,000 2,235,484
-------------
29,746,673
-------------
UTILITIES (1.1%)
Dominion Resources, Inc.,
2.800% 02/15/05...................... 1,250,000 1,267,092
FPL Group Capital, Inc.,
6.125% 05/15/07...................... 1,600,000 1,766,112
Kinder Morgan Energy Partners LP,
8.000% 03/15/05...................... 1,475,000 1,626,059
Pogo Producing Co.,
8.250% 04/15/11...................... 30,000 33,225
Progress Energy, Inc.,
7.75% 03/01/31....................... 500,000 602,835
SEMCO Energy, Inc.,
7.125% 05/15/08 (c).................. 5,000 5,225
Southern Power Co.,
6.250% 07/15/12...................... 1,300,000 1,474,028
-------------
6,774,576
-------------
See Accompanying Notes to Financial Statements
102
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
PAR VALUE
----------- -------------
INTERNATIONAL (1.1%)
Ontario Province,
3.500% 09/17/07...................... $ 2,200,000 $ 2,291,274
Quebec Province,
6.50% 01/17/06....................... 2,100,000 2,340,748
Republic of Italy,
2.500% 03/31/06...................... 1,300,000 1,326,322
United Mexican States,
8.000% 09/24/22...................... 1,150,000 1,290,875
-------------
7,249,219
-------------
Total Corporate Notes & Bonds
(Cost of $80,187,186)................ 87,785,998
-------------
OTHER SECURITIZED LOANS (6.3%)
ASSET-BACKED SECURITIES (3.6%)
Cityscape Home Equity Loan Trust:
Series 1997-B, Class A7,
7.410% 05/25/28...................... 1,665,402 1,710,238
Series 1997-4, Class A4,
7.440% 10/25/18...................... 1,574,469 1,637,862
First Alliance Mortgage Trust,
Series 1996-1, Class A1,
7.340% 06/20/27...................... 323,909 323,961
IMC Home Equity Loan Trust:
Series 1997-3, Class A6,
7.520% 08/20/28...................... 1,157,766 1,201,510
Series 1997-5, Class A9,
7.310% 11/20/28...................... 2,180,000 2,296,421
Merit Securities Corp.,
Series 13, Class A4,
7.880% 12/28/33...................... 3,980,000 3,970,314
Salomon Brothers Mortgage
Securities VII,
Series 1998-AQ1, Class A5,
7.150% 06/25/28...................... 3,150,000 3,374,910
SLM Student Loan Trust:
Series 1997-3, Class A2,
1.470% 10/25/10 (d).................. 3,763,286 3,787,644
Series 1997-4, Class A2,
1.657% 10/25/10 (d).................. 4,813,052 4,860,836
-------------
23,163,696
-------------
COLLATERALIZED MORTGAGE OBLIGATIONS (1.7%)
Bear Stearns Mortgage Securities, Inc.,
Series 1996-2, Class A1,
4.187% 01/28/25 (d).................. 1,114,352 1,114,328
CMC Securities Corp. IV,
Series 1997-2, Class IA12,
7.250% 11/25/27...................... 137,903 137,877
PAR VALUE
----------- -------------
Countrywide Home Loans, Inc.,
Series 2002-16, Class 1A1,
6.500% 09/25/32...................... $ 345,636 $ 352,405
First Nationwide Trust,
Series 2000-1, Class IIA3,
8.000% 10/25/30...................... 3,750,356 3,807,831
Residential Asset Securitization Trust,
Series 2002-A7, Class A2,
5.180% 01/25/27...................... 4,544,165 4,592,277
SACO I, Inc.,
Series 1995-1, Class A,
12.061% 09/25/24 (c)(d).............. 247,471 244,873
Structured Asset Securities Corp.:
Series 1999-ALS2, Class A2,
6.750% 07/25/29...................... 193,714 193,446
Series 2001-12, Class 1A4,
5.800% 09/25/31...................... 399,194 402,872
-------------
10,845,909
-------------
COMMERCIAL MORTGAGE-BACKED SECURITIES (1.0%)
GMAC Commercial Mortgage Asset Corp.,
Series 2001-FLAA, Class B1,
1.680% 06/15/13 (c)(d)............... 1,441,796 1,440,478
Nationslink Funding Corp.,
Series 1999-SL, Class A5,
6.888% 05/10/07...................... 4,380,000 4,987,894
-------------
6,428,372
-------------
Total Other Securitized Loans
(Cost of $39,219,652)................ 40,437,977
-------------
SHORT-TERM OBLIGATIONS (7.0%)
U.S. TREASURY BILL (0.7%)
1.165% 08/14/03........................ 4,600,000 4,593,900
-------------
REPURCHASE AGREEMENT (6.3%)
Repurchase agreement with State
Street Bank & Trust Co., dated
06/30/03, due 07/01/03 at 0.950%,
collateralized by a U.S. Treasury
Note maturing 08/15/03, market
value of $41,875,763 (repurchase
proceeds $41,054,083)................ 41,053,000 41,053,000
-------------
TOTAL SHORT-TERM OBLIGATIONS
(Cost of $45,646,900)................ 45,646,900
-------------
TOTAL INVESTMENTS (103.3%)
(Cost of $600,341,598) (e)........... 668,619,134
-------------
OTHER ASSETS & LIABILITIES, NET (-3.3)%.... (21,342,262)
-------------
NET ASSETS (100.0%)........................ $ 647,276,872
-------------
See Accompanying Notes to Financial Statements
103
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA BALANCED FUND (CONT.)
JUNE 30, 2003 (UNAUDITED)
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Non-income producing.
(b) This security, or a portion thereof, has been purchased on a delayed
delivery basis whereby the terms that are fixed are the purchase price,
interest rate and settlement date. The exact quantity purchased may be
slightly more or less than the amount shown.
(c) This security is exempt from registration under Rule 144A of the Securities
Act of 1933 and may be resold in transactions exempt from registration,
normally to qualified institutional buyers. At June 30, 2003,
the value of these securities amounted to $5,122,951, which represents 0.8%
of net assets.
(d) Variable rate security. The rate reported is the rate in effect at June 30,
2003.
(e) Cost for federal income tax purposes is $600,631,649.
ACRONYM NAME
------- ----
ADR American Depositary Receipt
COLUMBIA SHORT TERM BOND FUND
JUNE 30, 2003 (UNAUDITED)
PAR VALUE
----------- -------------
U.S. GOVERNMENT & AGENCY SECURITIES (28.6%)
U.S. TREASURY NOTES & BONDS (5.0%)
U.S. Treasury Notes,
3.500% 11/15/06........................ $ 5,000,000 $ 5,272,075
U.S. Treasury Inflation Index Notes,
3.625% 01/15/08...................... 20,252,484 22,727,095
-------------
27,999,170
-------------
U.S. AGENCY BONDS (1.2%)
Federal Home Loan Bank,
6.375% 11/14/03........................ 5,250,000 5,354,606
Federal Home Loan Mortgage Corp.,
4.625% 03/22/06........................ 1,000,000 1,008,022
Federal National Mortgage Association,
3.125% 11/15/03........................ 75,000 75,603
Morocco Government AID Bond,
1.423% 05/01/23 (a).................. 500,000 495,000
-------------
6,933,231
-------------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (GNMA) (0.7%)
6.500% 09/13/13 - 07/15/32............. 2,858,652 3,007,935
7.000% 11/15/13 - 08/15/29........... 757,348 805,044
-------------
3,812,979
-------------
FEDERAL HOME LOAN MORTGAGE
CORP. (FHLMC) (7.2%)
4.500% TBA (b)......................... 15,100,000 15,416,164
5.000% TBA (b)......................... 7,130,000 7,363,950
5.500% 05/01/17 - 12/01/17............. 12,810,233 13,290,595
6.000% 10/01/06 - 08/01/17............. 2,772,566 2,877,419
PAR VALUE
----------- -------------
7.000% 05/01/19........................ $ 1,715 $ 1,798
7.500% 09/01/15........................ 389,345 415,255
8.500% 07/01/30...................... 377,405 404,525
-------------
39,769,706
-------------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION (FNMA) (9.9%)
5.000% TBA (b)......................... 39,450,000 40,756,781
5.500% TBA (b)......................... 6,000,000 6,232,500
6.000% 03/01/09 - 05/01/17............. 5,772,294 5,992,880
6.500% 03/01/02 - 07/01/32............. 327,500 343,977
7.500% 08/01/15........................ 362,751 388,234
8.000% 05/01/05 - 07/01/31............. 1,301,551 1,397,847
-------------
55,112,219
-------------
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS (4.6%)
FHLMC:
Series 1558, Class C,
6.500% 07/15/23....................... 448,196 458,911
Series 1839, Class C,
6.500% 04/15/25....................... 215,566 216,760
Series 2500, Class PE,
6.000% 06/15/31....................... 1,430,000 1,494,850
Series 2512, Class DB,
5.000% 10/15/17....................... 2,953,815 2,954,664
Multi-class Mtg. Partn. Ctfs., Gtd.:
Series 1138,Class G,
8.500% 09/15/06....................... 114,939 116,763
Series 1283,Class K,
7.000% 06/15/22....................... 600,988 621,263
Series 2387,Class D,
5.500% 12/15/26....................... 1,428,982 1,440,162
Structured Pass Thru Securities,
Series T-41, Class 1A1,
3.340% 08/25/16....................... 1,225,491 1,224,688
FNMA:
Series 2001-34, Class AE,
6.000% 07/25/29....................... 1,250,000 1,273,722
Series 2001-55, Class PC,
6.500% 10/25/31....................... 1,900,000 1,976,492
Series 2002-42, Class A,
6.000% 01/25/16....................... 1,821,853 1,872,236
Series 2002-W6, Class 1A1,
3.090% 12/25/28....................... 2,059,891 2,058,419
Series 2003-29, Class WY,
4.000% 04/25/33....................... 3,676,368 3,694,331
Gtd. Remic Pass Thru Certificates:
Remic Tr. 1991-146, Class Z,
8.000% 10/25/06....................... 46,251 48,966
Remic Tr. 1993-92, Class C,
(c) 05/25/23.......................... 1,295,000 993,831
Remic Tr. 1998-36, Class GA,
6.000% 12/18/27....................... 2,925,124 2,962,290
See Accompanying Notes to Financial Statements
104
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
PAR VALUE
----------- -------------
GNMA Gtd. Remic Pass Thru Certificates,
Remic Tr. 1997-7, Class PC,
5.000% 05/16/27...................... $ 2,001,364 $ 2,029,562
-------------
25,437,910
-------------
Total U.S. Government & Agency Securities
(Cost of $158,955,689)............... 159,065,215
-------------
CORPORATE NOTES & BONDS (34.6%)
INDUSTRIALS (14.7%)
Anadarko Petroleum Corp.,
3.250% 05/01/08........................ 4,950,000 4,960,405
Anthem, Inc.,
4.875% 08/01/05........................ 2,225,000 2,350,425
AOL Time Warner, Inc.:
6.125% 04/15/06........................ 1,750,000 1,915,011
7.975% 08/15/04........................ 375,000 397,901
AT&T Corp.,
7.000% 11/15/06........................ 1,300,000 1,447,182
Boeing, Inc.,
8.100% 11/15/06........................ 1,820,000 2,124,708
Canadian National Railway Co.,
6.450% 07/15/06........................ 460,000 515,045
Caterpillar Financial Services Corp.,
6.875% 08/01/04........................ 2,500,000 2,647,878
ChevronTexaco Capital Co.,
3.500% 09/17/07........................ 3,350,000 3,484,787
Coca-Cola Enterprises, Inc.,
8.000% 01/04/05........................ 650,000 711,145
Colgate-Palmolive Co.,
1.415% 08/16/04 (a).................... 3,000,000 3,006,012
Conoco, Inc.,
5.900% 04/15/04...................... 150,000 155,188
ConocoPhillips,
8.500% 05/25/05........................ 3,165,000 3,566,794
Costco Wholesale Corp.,
5.500% 03/15/07........................ 640,000 707,172
Cox Enterprises, Inc.,
8.000% 02/15/07 (d).................... 1,300,000 1,523,613
DaimlerChrysler NA Holding Corp.,
4.750% 01/15/08........................ 1,575,000 1,617,267
Diageo Capital PLC,
3.375% 03/20/08........................ 4,500,000 4,604,269
Gannett Co., Inc.,
4.950% 04/01/05........................ 2,000,000 2,114,916
Honeywell International, Inc.,
5.125% 11/01/06........................ 2,445,000 2,670,967
International Business Machines Corp.:
4.250% 09/15/09........................ 600,000 635,219
4.875% 10/01/06........................ 2,500,000 2,718,935
John Deere Capital Corp.,
3.900% 01/15/08........................ 3,350,000 3,483,913
PAR VALUE
----------- -------------
Jones Intercable, Inc.,
7.625% 04/15/08........................ $ 1,875,000 $ 2,181,823
Kellogg Co.,
6.000% 04/01/06........................ 1,250,000 1,378,904
Lowe's Companies, Inc.,
7.500% 12/15/05........................ 1,675,000 1,904,390
Nestle Holdings (UK) PLC,
5.000% 12/08/03........................ 1,000,000 1,017,167
Newell Rubbermaid, Inc.,
2.000% 05/01/05........................ 3,725,000 3,736,603
Occidental Petroleum Corp.,
4.250% 03/15/10........................ 2,185,000 2,282,910
Pepsi Bottling Holdings, Inc.,
5.375% 02/17/04 (d).................... 1,750,000 1,794,784
Procter & Gamble Co.,
4.750% 06/15/07........................ 725,000 785,709
Target Corp.,
5.950% 05/15/06........................ 1,000,000 1,111,343
TCI Communications, Inc.,
7.250% 08/01/05........................ 1,125,000 1,225,456
Union Pacific Corp.,
3.875% 02/15/09........................ 1,825,000 1,867,570
United Technologies Corp.,
4.875% 11/01/06........................ 2,475,000 2,667,112
Verizon Global Funding Corp.:
6.750% 12/01/05........................ 2,000,000 2,233,232
Series A,
7.600% 03/15/07........................ 600,000 701,659
Verizon Wireless Capital LLC,
1.488% 12/17/03 (a).................... 2,000,000 1,999,630
Wal-Mart Stores, Inc.:
3.250% 09/29/03........................ 2,500,000 2,513,082
4.375% 07/12/07........................ 425,000 455,858
WellPoint Health Networks, Inc.,
6.375% 06/15/06........................ 2,350,000 2,637,111
Wyeth,
6.250% 03/15/06...................... 1,875,000 2,080,369
-------------
81,933,464
-------------
FINANCIALS (15.3%)
American Express Co.,
3.000% 05/16/08........................ 3,895,000 3,926,261
American General Finance Corp.,
5.375% 09/01/09........................ 150,000 164,114
American International Group, Inc.,
2.875% 05/15/08 (d).................... 5,200,000 5,183,152
Associates Corp. of North America,
5.750% 11/01/03........................ 2,500,000 2,537,838
AXA Financial, Inc.,
9.000% 12/15/04........................ 2,925,000 3,218,977
See Accompanying Notes to Financial Statements
105
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA SHORT TERM BOND FUND (CONT.)
JUNE 30, 2003 (UNAUDITED)
PAR VALUE
----------- -------------
Bank One Corp.,
2.625% 06/30/08........................ $ 3,100,000 $ 3,051,231
BankAmerica Corp.,
6.625% 10/15/07........................ 5,075,000 5,836,636
CIT Group, Inc.:
7.250% 08/15/05........................ 125,000 136,556
7.625% 08/16/05........................ 1,065,000 1,173,352
Citigroup, Inc.,
6.750% 12/01/05........................ 2,700,000 3,012,058
Countrywide Home Loans, Inc.,
5.250% 06/15/04........................ 1,175,000 1,218,486
Ford Motor Credit Co.,
7.375% 10/28/09........................ 5,425,000 5,695,697
General Electric Capital Corp.:
4.500% 07/15/06........................ 850,000 854,649
7.250% 05/03/04........................ 515,000 540,580
General Motors Acceptance Corp.,
6.750% 01/15/06........................ 2,500,000 2,655,652
Goldman Sachs Group, Inc.,
4.125% 01/15/08........................ 2,560,000 2,692,961
Health Care Property Investors, Inc.,
6.875% 06/08/05........................ 2,075,000 2,223,213
Household Finance Corp.,
6.400% 06/17/08........................ 3,225,000 3,685,359
Lehman Brothers Holdings, Inc.:
4.000% 01/22/08........................ 1,900,000 1,982,243
8.750% 03/15/05........................ 500,000 557,339
Merrill Lynch & Co., Inc.,
2.470% 03/10/06........................ 2,460,000 2,484,484
Morgan Stanley,
6.100% 04/15/06........................ 2,500,000 2,754,010
SLM Corp.,
5.625% 04/10/07........................ 4,000,000 4,443,300
Security Capital Group, Inc.,
7.150% 06/15/07........................ 6,315,000 7,349,713
U.S. Bancorp,
3.125% 03/15/08........................ 5,750,000 5,800,928
Wachovia Corp.,
4.950% 11/01/06........................ 3,300,000 3,595,871
Washington Mutual, Inc.,
5.625% 01/15/07........................ 2,600,000 2,868,011
Wells Fargo & Co.,
7.250% 08/24/05........................ 2,675,000 2,989,960
Wells Fargo Financial Inc.,
7.000% 11/01/05...................... 2,180,000 2,437,482
-------------
85,070,113
-------------
PAR VALUE
----------- -------------
UTILITIES (2.0%)
Alabama Power Co.,
3.125% 05/01/08........................ $ 2,500,000 $ 2,531,287
Dominion Resources, Inc.,
2.800% 02/15/05........................ 2,050,000 2,078,032
FPL Group Capital, Inc.:
6.875% 06/01/04........................ 250,000 262,096
7.625% 09/15/06........................ 2,500,000 2,890,872
Kinder Morgan Energy Partners LP,
8.000% 03/15/05........................ 915,000 1,008,708
Progress Energy, Inc.,
5.850% 10/30/08........................ 1,125,000 1,244,132
Virginia Electric and Power Co.,
5.375% 02/01/07........................ 1,200,000 1,311,571
-------------
11,326,698
-------------
INTERNATIONAL (2.6%)
Canadian Government Bond,
6.750% 08/28/06........................ 1,000,000 1,144,976
Italy Government International Bond,
2.500% 03/31/06........................ 1,950,000 1,989,484
Mexico Government International Bond,
4.625% 10/08/08........................ 2,000,000 2,047,000
Province of Ontario,
3.500% 09/17/07........................ 3,500,000 3,645,208
Quebec Province:
5.500% 04/11/06........................ 4,125,000 4,515,836
6.500% 01/17/06...................... 1,100,000 1,226,106
-------------
14,568,610
-------------
Total Corporate Notes & Bonds
(Cost of $186,965,445)............... 192,898,885
-------------
OTHER SECURITIZED LOANS (27.7%)
ASSET-BACKED SECURITIES (9.5%)
Americredit Automobile Receivables Trust:
Series 2000-1, Class B,
7.160% 09/05/05........................ 2,830,000 2,921,408
Series 2001-B, Class A4,
5.370% 06/12/08........................ 1,000,000 1,041,239
Chase Manhattan Auto Owner Trust,
Series 2000-A, Class A4,
6.260% 06/15/07........................ 2,000,000 2,060,343
Ford Credit Auto Owner Trust:
Series 2000-C, Class A5,
7.260% 07/15/04........................ 976,457 986,019
Series 2002-B, Class A3A,
4.140% 12/15/05........................ 3,500,000 3,579,692
Green Tree Financial Corp.,
7.900% 06/15/27........................ 398,354 422,504
Harley Davidson Motorcycle Trust,
3.090% 06/15/10........................ 1,525,000 1,571,202
See Accompanying Notes to Financial Statements
106
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
PAR VALUE
----------- -------------
Honda Auto Receivables Owner Trust:
Series 2001-2, Class A4,
5.090% 10/18/06...................... $ 2,750,000 $ 2,833,958
Series 2002-3, Class A3,
3.000% 05/18/06........................ 2,000,000 2,039,925
IMC Home Equity Loan Trust:
Series 1995-3, Class A5,
7.500% 04/25/26........................ 1,312,000 1,311,994
Series 1997-3, Class A6,
7.520% 08/20/28........................ 671,505 696,876
Series 1997-3, Class A7,
7.080% 08/20/28........................ 358,045 370,564
Merit Securities Corp.,
Series 1999-13, Class A4,
7.880% 12/28/33........................ 4,575,000 4,563,866
Nissan Auto Receivables Owner Trust,
Series 2002-B, Class A4,
4.600% 09/17/07........................ 2,500,000 2,639,933
SLM Student Loan Trust:
Series 1996-2, Class A2,
1.540% 07/27/09 (a).................... 9,693,836 9,799,298
Series 1996-3, Class A2,
1.510% 10/25/09 (a).................... 2,960,510 2,998,877
Series 1997-2, Class A2,
1.430% 01/25/10 (a).................... 2,141,619 2,151,109
Series 1997-3, Class A2,
1.580% 10/25/10 (a).................... 1,742,281 1,759,579
Series 1998-1, Class A2,
1.590% 10/25/11 (a).................... 2,728,045 2,759,797
Series 1998-2, Class A2,
1.560% 01/25/14 (a).................... 4,505,865 4,547,664
Toyota Auto Receivables Owner Trust,
Series 2001-C, Class A4,
4.720% 09/15/08...................... 1,675,000 1,745,483
-------------
52,801,330
-------------
COLLATERALIZED MORTGAGE OBLIGATIONS (17.6%)
Bear Stearns Asset-Backed Securities, Inc.:
Series 2002-AC5, Class 2A4,
5.625% 11/25/32........................ 2,352,715 2,384,383
Series 2003-AC2, Class A3,
3.500% 06/25/33........................ 5,614,446 5,685,938
Countrywide Home Loans:
Series 2001-16, Class 1A13,
6.750% 10/25/31........................ 3,196,611 3,200,702
Series 2002-16, Class 1A1,
6.500% 09/25/32........................ 637,901 650,395
Series 2002-32, Class 2A3,
5.000% 12/25/17........................ 5,258,213 5,350,521
Series 2002-J5, Class 1A1,
5.750% 01/25/33........................ 1,234,568 1,250,771
First Horizon Asset Securities, Inc.,
Series 2002-6, Class 1A1,
6.000% 11/25/32........................ 388,626 396,533
PAR VALUE
----------- -------------
GMAC Mortgage Corporation Loan Trust,
Series 2003-J3, Class A1,
1.535% 05/25/18 (a).................... $ 9,494,169 $ 9,510,737
IMPAC Secured Assets Common Owner Trust:
Series 2002-2, Class A7,
4.500% 04/25/33........................ 503,985 505,242
Series 2002-3, Class A2,
5.210% 08/25/32........................ 561,534 566,772
Master Asset Securitization Trust,
Series 2002-2, Class 2A1,
6.500% 04/25/32........................ 165,785 166,883
Ocwen Residential MBS Corp.,
Series 1998-R1, Class A1,
7.000% 10/25/40 (d).................... 504,794 512,111
PNC Mortgage Securities Corp.:
Series 1996-PR1, Class A,
5.929% 04/28/27 (a).................... 204,046 207,964
Series 1998-12, Class 4A5,
6.475% 01/25/29........................ 105,443 106,765
Series 1998-14, Class 2A1,
6.250% 01/25/14........................ 3,893,185 3,981,478
Residential Accredited Loans, Inc.,
Series 2002-QS9, Class A1,
1.635% 07/25/32 (a).................... 652,055 654,373
Residential Asset Securitization Trust:
Series 1999-A1, Class A1,
6.750% 03/25/29........................ 411,287 412,279
Series 2002-A1, Class A2,
5.350% 09/25/26........................ 314,084 315,019
Series 2002-A1, Class A4,
6.252% 01/25/30 (a).................... 700,000 718,970
Series 2002-A5, Class A2,
5.820% 01/25/27........................ 4,097,083 4,114,627
Series 2002-A7, Class A2,
5.180% 01/25/27........................ 2,824,969 2,854,879
Series 2002-A14J, Class A14,
6.000% 01/25/33........................ 3,553,953 3,645,644
Residential Funding Mortgage Securities I, Inc.:
Series 1999-S25, Class A1,
6.750% 12/25/14........................ 531,190 539,468
Series 2000-S2, Class A3,
7.500% 02/25/30........................ 451,323 452,344
Series 2002-S13, Class A5,
6.250% 10/25/32........................ 2,179,443 2,228,786
Series 2002-S15, Class A2,
5.400% 09/25/32........................ 2,611,415 2,646,865
Series 2002-S16, Class A7,
5.500% 10/25/17........................ 7,297,062 7,448,065
Series 2003-S8, Class A1,
5.000% 05/25/18........................ 11,929,978 12,482,660
See Accompanying Notes to Financial Statements
107
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA SHORT TERM BOND FUND (CONT.)
JUNE 30, 2003 (UNAUDITED)
PAR VALUE
----------- -------------
SACO I, Inc.,
Series 1997-2, Class 1A5,
7.000% 08/25/36 (d)................... $ 1,750,000 $ 1,793,403
Structured Asset Mortgage Investments, Inc.:
Series 1999-ALS2, Class A2,
6.750% 07/25/29........................ 99,899 99,761
Series 2002-3, Class 1A,
6.750% 07/28/28........................ 92,737 92,664
Series 2002-17, Class 1A3,
6.000% 09/25/32........................ 2,771,385 2,833,847
University Support Services, Inc.,
Series 1993-A, Class B,
6.500% 08/20/08 (a).................... 1,071 1,081
Washington Mutual Mortgage
Securities Corp.:
Series 2002-MS7, Class 1A14,
6.000% 11/25/32........................ 3,127,000 3,171,807
Series 2003-MS5, Class 1A4,
1.535% 03/25/18 (a).................... 8,714,958 8,730,166
Series 2003-S4, Class 1A3,
1.810% 06/25/18 (a).................... 5,942,154 5,944,085
Wells Fargo Mortgage-Backed
Securities Trust:
Series 2002-22, Class 2A2,
5.500% 01/25/33........................ 1,102,161 1,113,618
Series 2002-D, Class 1A1,
5.500% 08/25/32 (a).................. 1,251,614 1,266,788
-------------
98,038,394
-------------
COMMERCIAL MORTGAGE-BACKED SECURITIES (0.6%)
GMAC Commercial Mortgage Asset Corp.,
Series 2001-FLAA, Class B1,
1.680% 06/15/13 (a)(d)................. 524,289 523,810
Merrill Lynch Mortgage Investors, Inc.,
Series 1996-C1, Class A3,
7.420% 04/25/28........................ 425,645 438,373
Nationslink Funding Corp.,
Series 1999-SL, Class A5,
6.888% 11/10/30...................... 2,210,000 2,516,723
-------------
3,478,906
-------------
Total Other Securitized Loans
(Cost of $153,340,348)............... 154,318,630
-------------
SHORT-TERM OBLIGATIONS (20.8%)
U.S. TREASURY BILL (1.8%)
1.175% 01/30/03........................ 10,000,000 9,986,861
-------------
PAR VALUE
----------- -------------
REPURCHASE AGREEMENT (19.0%)
Repurchase agreement with State
Street Bank & Trust Co., dated
06/30/03, due 07/01/03 at 0.950%
collateralized by U.S. Treasury
Bonds with maturities to
06/30/04, market value
of $108,107,184 (repurchase
proceeds $105,986,797)...............$105,984,000 $ 105,984,000
-------------
TOTAL SHORT-TERM OBLIGATIONS
(Cost of $115,970,861)............... 115,970,861
-------------
TOTAL INVESTMENTS (111.7%)
(Cost of $615,232,343) (e)........... 622,253,591
-------------
OTHER ASSETS & LIABILITIES, NET (-11.7%)... (65,332,508)
-------------
NET ASSETS (100.0%)........................ $ 556,921,083
=============
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Interest rates of variable rate securities change periodically. The rate
listed is as of June 30, 2003.
(b) This security, or a portion thereof, has been purchased on a delayed
delivery basis whereby the terms that are fixed are the purchase price,
interest rate and settlement date. The exact quantity purchased may be
slightly more or less than the amount shown.
(c) Zero coupon bond.
(d) This security is exempt from registration under Rule 144A of the Securities
Act of 1933 and may be resold in transactions exempt from registration,
normally to qualified institutional buyers. At June 30, 2003, the value of
these securities amounted to $11,330,873, which represents 2.0% of net
assets.
(e) Cost for federal income tax purposes is $615,299,385.
ACRONYM NAME
------- ----
TBA To Be Announced
COLUMBIA FIXED INCOME SECURITIES FUND
JUNE 30, 2003 (UNAUDITED)
PAR VALUE
----------- -------------
U.S. GOVERNMENT & AGENCY SECURITIES (43.3%)
U.S. TREASURY NOTES & BONDS (15.4%)
U.S. Treasury Bonds:
6.250% 08/15/23...................... $24,410,000 $ 29,907,986
8.875% 08/15/17...................... 12,335,000 18,664,397
U.S. Treasury Inflation Index Note,
3.625% 01/15/08...................... 25,218,894 28,300,340
U.S. Treasury Notes:
3.500% 11/15/06...................... 4,400,000 4,639,426
4.875% 02/15/12...................... 6,005,000 6,676,815
-------------
88,188,964
-------------
See Accompanying Notes to Financial Statements
108
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
PAR VALUE
----------- -------------
FEDERAL HOME LOAN MORTGAGE
CORP. (FHLMC) (11.8%)
4.500% TBA (a)....................... $ 5,000,000 $ 5,113,281
5.000% TBA (a)....................... 15,515,000 16,024,078
6.000% 05/01/17 - 12/01/32........... 33,812,480 35,144,734
6.500% 11/15/30 - 08/01/32........... 10,563,933 10,996,965
-------------
67,279,058
-------------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION (FNMA) (10.5%)
5.000% TBA (a)....................... 47,250,000 48,815,156
6.000% 03/01/09 - 03/01/33........... 8,081,018 8,361,709
6.052% 06/01/32...................... 209,141 219,552
6.149% 07/01/32...................... 1,694,919 1,769,600
6.500% 07/01/32 - 08/01/32........... 1,069,985 1,116,128
-------------
60,282,145
-------------
FEDERAL HOUSING ADMINISTRATION (FHA) (0.6%)
FHA Insured Project:
Pool #067-22003,
8.200% 06/01/31...................... 1,132,065 1,160,690
Pool #071-94016,
8.625% 05/01/23...................... 2,125,226 2,255,906
-------------
3,416,596
-------------
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS (5.0%)
FHLMC GNMA Multiclass Mtg. Partn. Ctfs. Gtd.,
Series 24, Class J,
6.250% 11/25/23...................... 2,310,000 2,487,948
FHLMC Multiclass Mtg. Partn. Ctfs. Gtd.:
Series 1558, Class C,
6.500% 07/15/23...................... 1,787,407 1,830,139
Series 1602, Class PJ,
6.500% 10/15/23...................... 510,000 555,884
Series 2085, Class PD,
6.250% 11/15/26...................... 4,775,806 4,840,547
Series 2113, Class MU,
6.500% 08/15/27...................... 2,399,826 2,441,411
Series 2235, Class VN,
7.000% 06/15/14...................... 4,840,000 4,968,073
FNMA Gtd. Remic Pass Thru Ctfs.:
Remic Tr. 1996-W2, Class A7,
7.800% 06/25/26...................... 1,022,780 1,094,230
Remic Tr. 2001-55, Class PC,
6.500% 10/25/31...................... 5,418,000 5,636,123
Remic Tr. 2001-56, Class KD,
6.500% 07/25/30...................... 4,790,000 4,919,475
-------------
28,773,830
-------------
Total U.S. Government & Agency Securities
(Cost of $240,696,417)............... 247,940,593
-------------
PAR VALUE
----------- -------------
CORPORATE NOTES & BONDS (36.3%)
INDUSTRIALS (20.3%)
Abitibi-Consolidated, Inc.:
6.000% 06/20/13...................... $ 75,000 $ 71,382
7.875% 08/01/09...................... 225,000 249,750
Advance PCS,
8.500% 04/01/08...................... 750,000 806,250
Airgas, Inc.,
9.125% 10/01/11...................... 210,000 233,625
Alcan, Inc.,
7.250% 03/15/31...................... 2,400,000 2,995,469
Allied Waste North America, Inc.,
10.000% 08/01/09..................... 550,000 584,375
American Axle & Manufacturing, Inc.,
9.750% 03/01/09...................... 600,000 645,000
American Home Products Corp.,
6.250% 03/15/06...................... 2,000,000 2,219,060
AmerisourceBergen Corp.,
8.125% 09/01/08...................... 500,000 550,000
Anadarko Finance Co.,
7.500% 05/01/31...................... 2,610,000 3,289,514
Anadarko Petroleum Corp.,
3.250% 05/01/08...................... 1,000,000 1,002,102
Anheuser-Busch Companies, Inc.:
5.625% 10/01/10...................... 3,000,000 3,409,782
5.750% 04/01/10...................... 530,000 606,067
Anthem, Inc.,
6.800% 08/01/12...................... 1,550,000 1,812,706
Arch Western Finance,
6.750% 07/01/13 (b).................. 280,000 288,400
AT&T Corp.,
8.500% 11/15/31...................... 1,390,000 1,581,588
Ball Corp.,
7.750% 08/01/06...................... 600,000 657,000
Boeing Co.:
5.125% 02/15/13...................... 335,000 352,919
6.125% 02/15/33...................... 1,475,000 1,545,555
BP Amoco PLC,
5.900% 04/15/09...................... 1,800,000 2,069,069
British Sky Broadcasting Group,
7.300% 10/15/06...................... 200,000 224,000
Canadian National Railway Co.,
7.195% 01/02/16...................... 1,906,913 2,297,362
Canandaigua Brands, Inc.,
8.500% 03/01/09...................... 650,000 682,500
Cascades, Inc.,
7.250% 02/15/13 (b).................. 235,000 247,338
See Accompanying Notes to Financial Statements
109
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA FIXED INCOME SECURITIES FUND (CONT.)
JUNE 30, 2003 (UNAUDITED)
PAR VALUE
----------- -------------
Chesapeake Energy Corp.:
7.500% 09/15/13 (b).................. $ 320,000 $ 340,000
8.125% 04/01/11...................... 25,000 26,938
8.375% 11/01/08...................... 165,000 178,613
9.000% 08/15/12...................... 45,000 50,175
ChevronTexaco Capital Co.,
3.500% 09/17/07...................... 4,160,000 4,327,378
Cinemark USA, Inc.,
9.000% 02/01/13 (b).................. 410,000 444,850
Coca-Cola Enterprises, Inc.,
6.750% 01/15/38...................... 1,000,000 1,180,918
Comcast Corp.,
7.050% 03/15/33...................... 870,000 970,093
Coors Brewing Co.,
6.375% 05/15/12...................... 1,200,000 1,379,501
Costco Wholesale Corp.,
5.500% 03/15/07...................... 1,900,000 2,099,416
Cott Beverages, Inc.,
8.000% 12/15/11...................... 570,000 615,600
Cox Communications, Inc.,
7.875% 08/15/09...................... 235,000 288,877
Cox Enterprises, Inc.,
8.000% 02/15/07 (b).................. 2,250,000 2,637,023
CSC Holdings, Inc.:
8.125% 08/15/09...................... 75,000 77,625
9.875% 02/15/13...................... 375,000 391,875
DaimlerChrysler NA Holding Corp.,
8.500% 01/18/31...................... 1,175,000 1,388,055
Dex Media East LLC,
12.125% 11/15/12..................... 425,000 502,562
Diageo Capital PLC,
3.375% 03/20/08...................... 2,570,000 2,629,549
DirecTV Holdings,
8.375% 03/15/13 (b).................. 210,000 234,150
Equistar Chemical:
10.125% 09/01/08..................... 25,000 25,750
10.625% 05/01/11 (b)................. 25,000 25,625
Ethyl Corp.,
8.875% 05/01/10 (b).................. 50,000 51,000
Extended Stay America, Inc.,
9.875% 06/15/11...................... 500,000 537,500
General Electric Co.,
5.000% 02/01/13...................... 5,375,000 5,688,217
Grant Prideco, Inc.:
9.000% 12/15/09...................... 460,000 510,600
9.625% 12/01/07...................... 40,000 44,200
Harrah's Operating Co., Inc.,
7.875% 12/15/05...................... 250,000 271,875
PAR VALUE
----------- -------------
Hasbro, Inc.,
8.500% 03/15/06...................... $ 600,000 $ 657,000
HCA, Inc.,
6.910% 06/15/05...................... 500,000 530,445
Houghton Mifflin Co.,
9.875% 02/01/13 (b).................. 405,000 439,425
International Business Machines Corp.,
5.875% 11/29/32...................... 3,460,000 3,724,749
International Game Technology,
8.375% 05/15/09...................... 250,000 307,142
Iron Mountain, Inc.,
8.625% 04/01/13...................... 1,000,000 1,070,000
ITT Corp.,
6.750% 11/15/05...................... 425,000 443,596
John Deere Capital Corp.,
3.900% 01/15/08...................... 1,400,000 1,455,964
K & F Industries, Inc.,
9.625% 12/15/10...................... 285,000 316,350
KB Home,
8.625% 12/15/08...................... 500,000 567,500
Kennametal, Inc.,
7.200% 06/15/12...................... 115,000 125,861
Key Energy Services, Inc.,
6.375% 05/01/13...................... 130,000 131,950
L-3 Communications Corp.,
7.625% 06/15/12...................... 410,000 451,000
Lamar Media Corp.:
7.250% 01/01/13...................... 150,000 159,000
8.625% 09/15/07...................... 250,000 259,375
Lear Corp.,
7.960% 05/15/05...................... 600,000 639,000
LIN Television Corp.,
6.500% 05/15/13 (b).................. 300,000 299,250
Lowe's Companies, Inc.,
6.500% 03/15/29...................... 1,200,000 1,365,379
MacDermid, Inc.,
9.125% 07/15/11...................... 30,000 33,525
Mediacom LLC,
9.500% 01/15/13...................... 500,000 528,750
Newell Rubbermaid, Inc.,
4.000% 05/01/10...................... 2,545,000 2,597,122
Nextel Communications, Inc.:
9.750% 10/31/07...................... 300,000 310,500
10.650% 09/15/07..................... 200,000 206,500
Occidental Petroleum Corp.,
4.250% 03/15/10...................... 1,825,000 1,906,778
Offshore Logistics, Inc.,
6.125% 06/15/13 (b).................. 405,000 406,012
Omnicare, Inc.,
8.125% 03/15/11...................... 100,000 108,500
See Accompanying Notes to Financial Statements
110
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
PAR VALUE
----------- -------------
Owens-Illinois, Inc.,
7.350% 05/15/08...................... $ 250,000 $ 250,000
Park Place Entertainment Corp.,
9.375% 02/15/07...................... 600,000 664,500
Peabody Energy Corp.,
6.875% 03/15/13 (b).................. 375,000 392,813
Pepsi Bottling Holdings, Inc.,
5.625% 02/17/09 (b).................. 4,050,000 4,547,753
Phillips Petroleum Co.,
8.500% 05/25/05...................... 2,675,000 3,014,589
Pogo Producing Co.,
8.250% 04/15/11...................... 65,000 71,987
Premier Parks, Inc.,
9.750% 06/15/07...................... 330,000 202,950
Pride International, Inc.,
9.375% 05/01/07...................... 500,000 516,250
Procter & Gamble Co.,
4.750% 06/15/07...................... 1,950,000 2,113,285
R.H. Donnelley Financial Corp.:
8.875% 12/15/10 (b).................. 50,000 55,250
10.875% 12/15/12 (b)................. 360,000 419,400
Rogers Cable, Inc.,
7.875% 05/01/12...................... 470,000 512,300
Scotts Co.,
8.625% 01/15/09...................... 530,000 567,100
Select Medical Corp.,
9.500% 06/15/09...................... 500,000 543,125
Silgan Holdings, Inc.,
9.000% 06/01/09...................... 600,000 621,000
Sinclair Broadcasting Group, Inc.:
8.000% 03/15/12...................... 380,000 405,650
8.000% 03/15/12 (b).................. 60,000 64,050
Smurfit-Stone Container Corp.:
8.250% 10/01/12...................... 130,000 139,425
9.750% 02/01/11...................... 455,000 498,225
Speedway Motorsports, Inc.,
6.750% 06/01/13 (b).................. 200,000 207,000
Starwood Hotels & Resorts
Worldwide, Inc.,
7.375% 05/01/07...................... 175,000 184,187
Station Casinos, Inc.:
8.875% 12/01/08...................... 75,000 78,750
9.875% 07/01/10...................... 500,000 550,000
Synagro Technologies, Inc.,
9.500% 04/01/09...................... 75,000 80,625
TCI Communications, Inc.,
7.250% 08/01/05...................... 1,800,000 1,960,729
Teekay Shipping Corp.,
8.875% 07/15/11...................... 775,000 849,594
Time Warner, Inc.,
7.975% 08/15/04...................... 1,950,000 2,069,086
PAR VALUE
----------- -------------
Toll Corp.,
7.750% 09/15/07...................... $ 600,000 $ 623,250
Triad Hospitals, Inc.,
8.750% 05/01/09...................... 600,000 638,250
Union Pacific Corp.,
3.875% 02/15/09...................... 2,340,000 2,394,583
United Rentals, Inc.,
10.750% 04/15/08..................... 500,000 546,250
United Technologies Corp.,
7.125% 11/15/10...................... 4,125,000 4,984,023
Universal Compression, Inc.,
7.250% 05/15/10 (b).................. 50,000 52,000
Verizon Global Funding Corp.,
7.250% 12/01/10...................... 2,175,000 2,616,662
Viacom, Inc.,
5.500% 05/15/33...................... 1,100,000 1,097,514
Vintage Petroleum, Inc.,
9.750% 06/30/09...................... 245,000 263,375
Wal-Mart Stores, Inc.,
4.375% 07/12/07...................... 2,350,000 2,520,624
WellPoint Health Networks, Inc.,
6.375% 06/15/06...................... 2,365,000 2,653,944
Westport Resources Corp.,
8.250% 11/01/11...................... 610,000 667,950
Winn-Dixie Stores, Inc.,
8.875% 04/01/08...................... 305,000 323,300
XTO Energy, Inc.,
7.500% 04/15/12...................... 600,000 681,000
Yum! Brands, Inc.,
8.500% 04/15/06...................... 500,000 560,000
-------------
116,581,799
-------------
FINANCIALS (10.7%)
American General Finance Corp.,
5.375% 09/01/09...................... 850,000 929,981
Bank of America Corp.:
5.875% 02/15/09...................... 1,355,000 1,543,051
7.800% 02/15/10...................... 2,700,000 3,333,344
Bank One Corp.,
2.625% 06/30/08...................... 2,800,000 2,755,950
CIT Group, Inc.,
7.250% 08/15/05...................... 970,000 1,059,677
Citigroup, Inc.,
7.250% 10/01/10...................... 2,350,000 2,851,436
Equitable Companies, Inc.,
9.000% 12/15/04...................... 2,475,000 2,723,750
Ford Motor Credit Co.,
7.375% 10/28/09...................... 5,700,000 5,984,419
General Electric Capital Corp.,
6.750% 03/15/32...................... 665,000 780,440
See Accompanying Notes to Financial Statements
111
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA FIXED INCOME SECURITIES FUND (CONT.)
JUNE 30, 2003 (UNAUDITED)
PAR VALUE
----------- -------------
General Motors Acceptance Corp.,
4.500% 07/15/06 (a).................. $ 2,615,000 $ 2,629,304
Goldman Sachs Group, Inc.,
6.125% 02/15/33...................... 1,525,000 1,641,158
Health Care Property Investors, Inc.,
6.450% 06/25/12...................... 2,390,000 2,604,961
Health Care REIT, Inc.,
7.500% 08/15/07...................... 500,000 534,239
Household Finance Corp.,
6.400% 06/17/08...................... 2,550,000 2,914,005
iStar Financial, Inc.,
7.000% 03/15/08...................... 200,000 209,351
Lehman Brothers Holdings, Inc.,
4.000% 01/22/08...................... 2,800,000 2,921,201
Merrill Lynch & Co., Inc.,
2.470% 03/10/06...................... 3,000,000 3,029,859
Morgan Stanley:
4.250% 05/15/10...................... 955,000 984,431
6.100% 04/15/06...................... 1,650,000 1,817,647
SLM Corp.,
5.125% 08/27/12...................... 3,900,000 4,151,683
US Bank NA,
6.375% 08/01/11...................... 4,000,000 4,676,988
Wachovia Corp.,
4.950% 11/01/06...................... 3,530,000 3,846,493
Washington Mutual, Inc.,
5.625% 01/15/07...................... 2,505,000 2,763,218
Wells Fargo & Co.,
4.875% 06/12/07...................... 4,175,000 4,536,355
-------------
61,222,941
-------------
UTILITIES (2.6%)
Dominion Resources, Inc.,
2.800% 02/15/05...................... 2,750,000 2,787,603
FPL Group Capital, Inc.,
6.125% 05/15/07...................... 3,525,000 3,890,965
Kinder Morgan Energy Partners LP,
6.750% 03/15/11...................... 2,750,000 3,202,705
Progress Energy, Inc.,
7.750% 03/01/31...................... 1,215,000 1,464,889
SEMCO Energy, Inc.,
7.125% 05/15/08 (b).................. 15,000 15,675
Southern Power Co.,
6.250% 07/15/12...................... 3,000,000 3,401,604
-------------
14,763,441
-------------
INTERNATIONAL (2.7%)
British Columbia Province,
5.375% 10/29/08...................... 1,900,000 2,138,777
PAR VALUE
----------- -------------
Hydro-Quebec,
6.970% 03/01/05...................... $ 1,000,000 $ 1,089,025
Ontario Province:
3.500% 09/17/07...................... 3,825,000 3,983,692
7.000% 01/30/07...................... 2,490,000 2,896,829
Republic of Italy,
2.500% 03/31/06...................... 2,750,000 2,805,682
United Mexican States,
8.000% 09/24/22...................... 2,105,000 2,362,862
-------------
15,276,867
-------------
Total Corporate Notes & Bonds
(Cost of $191,124,940)............... 207,845,048
-------------
OTHER SECURITIZED LOANS (15.2%)
ASSET-BACKED SECURITIES (6.8%)
Cityscape Home Equity Loan Trust,
Series 1997-4, Class A4,
7.440% 10/25/18...................... 1,070,639 1,113,746
ContiMortgage Home Equity Loan Trust,
Series 1999-3, Class A6,
7.680% 12/25/29...................... 2,700,000 2,908,209
IMC Home Equity Loan Trust:
Series 1995-3, Class A5,
7.500% 04/25/26...................... 1,980,000 1,979,991
Series 1997-3, Class A6,
7.520% 08/20/28...................... 2,463,727 2,556,814
Series 1997-5, Class A9,
7.310% 11/20/28...................... 5,840,000 6,151,880
Merit Securities Corp.,
Series 13, Class A4,
7.880% 12/28/33...................... 5,265,000 5,252,187
Nationslink Funding Corp.,
Series 1999-SL, Class A5,
6.888% 05/10/07...................... 2,470,000 2,812,808
New Century Home Equity Loan Trust,
Series 1999-NCA, Class A7,
7.320% 07/25/29...................... 1,475,044 1,573,515
Oakwood Mortgage Investors, Inc.,
Series 2000-D, Class A4,
7.400% 07/15/30...................... 6,395,000 6,061,276
Salomon Brothers Mortgage
Securities VII, Inc.,
Series 1998-AQ1, Class A5,
7.150% 06/25/28...................... 1,960,000 2,099,944
SLM Student Loan Trust,
Series 1997-4, Class A2,
1.657% 10/25/10 (c).................. 6,185,098 6,246,504
-------------
38,756,874
-------------
COLLATERALIZED MORTGAGE OBLIGATIONS (7.9%)
Bear Stearns Asset-Backed Securities, Inc.,
Series 2002-AC5, Class 2A4,
5.625% 11/25/33...................... 4,564,267 4,625,702
See Accompanying Notes to Financial Statements
112
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
PAR VALUE
----------- -------------
Bear Stearns Mortgage Securities, Inc.,
Series 1996-2, Class A1,
4.187% 01/28/25 (c).................. $ 934,248 $ 934,227
CMC Securities Corp. IV,
Series 1997-2, Class IA12,
7.250% 11/25/27...................... 82,524 82,509
Countrywide Home Loans, Inc.:
Series 2002-5, Class 2A1,
6.000% 04/25/17...................... 3,731,270 3,824,155
Series 2002-16, Class 1A1,
6.500% 09/25/32...................... 2,383,871 2,430,559
Credit Suisse First Boston
Mortgage Securities Corp.,
Series 2001-11, Class 1A3,
7.000% 06/25/31...................... 701,692 718,903
IMPAC Secured Assets Common
Owner Trust, Series 2002-3,
Class A2,
5.210% 08/25/32...................... 2,620,494 2,644,937
Master Asset Securitization Trust,
Series 2002-2, Class 2A1,
6.500% 04/25/32...................... 352,733 355,070
PNC Mortgage Securities Corp.,
Series 1998-12, Class 4A4,
6.500% 01/25/29...................... 573,346 578,077
Residential Asset Securitization Trust:
Series 2002-A1, Class A2,
5.350% 09/25/26...................... 842,793 845,301
Series 2002-A1, Class A4,
6.252% 01/25/30 (c).................. 5,098,000 5,236,155
Series 2002-A5, Class A2,
5.820% 01/25/27...................... 2,704,617 2,716,199
Series 2002-A7, Class A2,
5.180% 11/25/27...................... 6,755,712 6,827,240
Residential Funding Mortgage
Securities I:
Series 2002-S15, Class A2,
5.400% 09/25/23...................... 1,217,791 1,234,322
Series 2002-S16, Class A7,
5.500% 10/25/17...................... 5,730,904 5,849,497
Series 2003-S8, Class A1,
5.000% 05/25/18 (a).................. 5,467,907 5,721,219
Structured Asset Securities Corp.:
Series 1999-ALS2, Class A2,
6.750% 07/25/29...................... 161,375 161,152
Series 2001-12, Class 1A4,
5.800% 09/25/31...................... 525,255 530,095
-------------
45,315,319
-------------
PAR VALUE
----------- -------------
COMMERCIAL MORTGAGE-BACKED SECURITIES (0.5%)
GMAC Commercial Mortgage Asset Corp.,
Series 2001-FLAA, Class B1,
1.680% 06/15/13 (b)(c)............... $ 2,907,252 $ 2,904,593
-------------
Total Other Securitized Loans
(Cost of $85,746,079)................ 86,976,786
-------------
SHORT-TERM OBLIGATIONS (16.7%)
U.S. TREASURY BILL (1.8%)
1.165% 08/14/03...................... 10,000,000 9,986,861
-------------
REPURCHASE AGREEMENT (14.9%)
Repurchase agreement with State
Street Bank & Trust Co., dated
06/30/03, due 07/01/03 at 0.950%,
collateralized by U.S. Treasury
Notes with maturities to 08/15/09,
market value of $87,032,992
(repurchase proceeds
$85,326,252)......................... 85,324,000 85,324,000
-------------
Total Short-Term Obligations
(Cost of $95,310,861)................ 95,310,861
-------------
TOTAL INVESTMENTS (111.5%)
(Cost of $612,878,297) (d)........... 638,073,288
-------------
OTHER ASSETS & LIABILITIES, NET (-11.5%). (66,191,683)
-------------
NET ASSETS (100.0%)...................... $ 571,881,605
=============
NOTES TO SCHEDULE OF INVESTMENTS:
(a) This security, or a portion thereof, has been purchased on a delayed
delivery basis whereby the terms that are fixed are the purchase price,
interest rate and settlement date. The exact quantity purchased may be
slightly more or less than the amount shown.
(b) This security is exempt from registration under Rule 144A of the Securities
Act of 1933 and may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At June 30,
2003, the value of these securities amounted to $14,071,607, which
represents 2.5% of net assets.
(c) Variable rate security. The rate reported is the rate in effect at June 30,
2003.
(d) Cost for federal income tax purposes is $613,844,724.
COLUMBIA NATIONAL MUNICIPAL BOND FUND
JUNE 30, 2003 (UNAUDITED)
PAR VALUE
----------- -------------
MUNICIPAL BONDS (97.6%)
ALASKA (2.8%)
Industrial Development & Export Authority,
Snettisham Hydroelectric, Series 1:
Pre-refunded,
5.500% 01/01/08...................... $ 5,000 $ 5,686
Unrefunded,
5.500% 01/01/08...................... 95,000 107,055
See Accompanying Notes to Financial Statements
113
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA NATIONAL MUNICIPAL BOND FUND (CONT.)
JUNE 30, 2003 (UNAUDITED)
PAR VALUE
----------- -------------
Municipal Bond Bank Authority, Series C,
5.500% 09/15/16................... $ 100,000 $ 113,935
Palmer Valley Hospital Association,
5.350% 12/01/12...................... 125,000 136,009
State Housing Finance Corp.,
Veterans Mortgage, Series A2,
6.000% 06/01/15...................... 115,000 123,714
-------------
486,399
-------------
ARIZONA (1.5%)
South Conway County School District
No. 17, Series 2003 B,
4.000% 06/01/15...................... 250,000 253,695
-------------
ARKANSAS (1.6%)
Little Rock Waste Disposal Revenue,
Series 2002,
5.000% 05/01/16...................... 250,000 268,970
-------------
CALIFORNIA (1.6%)
State Department of Water Resource,
Power Supply Revenue, Series 2002,
5.000% 05/01/16...................... 250,000 271,237
-------------
COLORADO (0.2%)
Housing Finance Authority,
Single Family,
4.875% 04/01/07...................... 35,000 36,760
-------------
IDAHO (1.5%)
Boise City Housing Authority Revenue,
Hobler Place Project, Series 2002,
4.750% 02/01/07...................... 145,000 145,090
Health Facilities Authority,
Bingham Memorial Hospital Project,
5.850% 03/01/19...................... 100,000 100,839
Student Loan Fund Marketing
Association, Series C,
5.600% 04/01/07...................... 10,000 10,248
-------------
256,177
-------------
ILLINOIS (10.4%)
Broadview Tax Increment Revenue,
4.900% 07/01/06...................... 75,000 76,823
Chicago Housing Authority Capital,
Series 2001,
5.375% 07/01/19...................... 250,000 265,275
Chicago Motor Fuel Tax Revenue,
Series 2003 A,
5.250% 01/01/17...................... 250,000 279,157
Chicago Park District Aquarium & Museum,
5.800% 01/01/18...................... 150,000 170,446
PAR VALUE
----------- -------------
Chicago Public Building Community
Building Revenue, Chicago School Reform,
Series 1999 B,
5.250% 12/01/16...................... $ 250,000 $ 290,355
Lake County Community Unified School
District No. 095, Lake Zurich,
Capital Appreciation, Series 2000,
(a) 12/01/17......................... 340,000 178,116
Madison & St. Clair Counties School
District No. 010, Collinsville School Building,
5.500% 02/01/12...................... 250,000 288,465
Regional Transportation Authority,
Series A,
6.400% 06/01/12...................... 100,000 124,248
Will County Forest Preservation District,
Series 1999 B,
(a) 12/01/11......................... 150,000 110,558
-------------
1,783,443
-------------
INDIANA (3.8%)
Board Bank Revenue,
Special Program, Hendricks,
Series 2002 D,
5.375% 04/01/15...................... 250,000 283,312
Transportation Financial Authority,
Airport Facilities, Series A,
5.500% 11/01/17...................... 100,000 106,506
West Lafayette Industrial Building Corp.,
First Mortgage, Police Station Project,
5.000% 07/15/18...................... 250,000 268,678
-------------
658,496
-------------
IOWA (2.6%)
Finance Authority:
Health Care Facilities Revenue,
Genesis Medical Center,
6.100% 07/01/15...................... 285,000 331,609
Single Family Mortgage,
Series A,
5.800% 07/01/16...................... 115,000 121,408
-------------
. 453,017
-------------
KENTUCKY (0.5%)
Louisville & Jefferson County Visitors &
Convention Commission, Series 1999 BBB,
(a) 12/01/08......................... 100,000 79,458
-------------
LOUISIANA (3.3%)
Calcasieu Parish School District No. 31,
Public School Import, Series 2000,
5.500% 05/01/16...................... 250,000 283,215
State Gas & Fuel Tax Revenue,
Series 2002 A,
5.250% 06/01/11...................... 250,000 287,135
-------------
570,350
-------------
See Accompanying Notes to Financial Statements
114
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
PAR VALUE
----------- -------------
MAINE (0.6%)
Regional Waste System Industry Solid
Waste Resource Recovery, Series Q,
5.500% 07/01/04...................... $ 100,000 $ 104,330
-------------
MICHIGAN (6.3%)
Lansing Board Water & Light
Water Supply Steam & Electric
Utility System,
Series A,
5.000% 07/01/15...................... 260,000 283,517
State Hospital Finance Authority,
Ascension Health Credit, Series A:
5.375% 11/15/33...................... 100,000 112,897
6.000% 11/15/19...................... 100,000 121,662
Sturgis Public School District,
School Building & Site,
5.500% 05/01/14...................... 250,000 285,185
Warren Downtown Development,
Series 2002,
5.000% 10/01/16...................... 250,000 276,503
-------------
1,079,764
-------------
MISSISSIPPI (2.3%)
Development Bank, Convention
Center Project,
6.500% 07/01/13...................... 230,000 287,702
Jones County Hospital,
Refunding South Central
Regional Medical Center,
4.900% 12/01/04...................... 100,000 103,942
-------------
391,644
-------------
MONTANA (1.3%)
Whitefish Tax Increment, Urban
Renewal Revenue,
6.625% 07/15/20...................... 200,000 218,568
-------------
NEVADA (1.7%)
State, Colorado River Commission,
Hoover Dam Project, Series 2002,
5.375% 10/01/14...................... 250,000 287,917
-------------
NEW YORK (3.3%)
New York City:
AMBAC TCRS,
Series 2000,
5.750% 08/01/11...................... 250,000 290,560
Series A,
6.000% 05/15/21...................... 250,000 274,698
-------------
565,258
-------------
NORTH DAKOTA (1.6%)
Fargo School District Building Authority
Development, Series 2000,
5.500% 05/01/13...................... 250,000 283,010
-------------
PAR VALUE
----------- -------------
OHIO (2.5%)
Oak Hills Local School District,
7.200% 12/01/09...................... $ 100,000 $ 126,807
State Water Development Authority
Revenue, Fresh Water,
Series 2001 B,
5.500% 12/01/18...................... 250,000 298,582
-------------
425,389
-------------
OKLAHOMA (1.4%)
Okmulgee County,
1st Mortgage,
6.000% 03/01/15...................... 200,000 232,188
-------------
OREGON (12.5%)
Bend Municipal Airport Project,
Series B,
5.375% 06/01/13...................... 100,000 110,537
Benton County Hospital Facilities
Authority Refunding, Samaritan
Health Services Project:
4.200% 10/01/05...................... 40,000 42,265
4.600% 10/01/09...................... 40,000 43,001
Clackamas County, Limited
Tax Assessment,
6.250% 05/01/15...................... 200,000 202,036
Damascus Water District,
Certificates of Participation,
5.250% 03/01/19...................... 100,000 104,704
Deschutes County Hospital
Facilities Authority, Cascade
Health Services, Inc.,
Series 2002,
5.600% 01/01/27...................... 100,000 104,992
Eugene Trojan Nuclear Project,
5.900% 09/01/09...................... 30,000 30,160
Health Sciences University, Capital
Appreciation, Series 1996 A,
(a) 07/01/16......................... 100,000 58,143
Hillsboro Hospital Facility Authority
Refunding, Tuality Healthcare,
5.250% 10/01/04...................... 100,000 103,783
Klamath Community College District:
4.700% 04/01/10...................... 55,000 59,617
4.800% 04/01/11...................... 25,000 26,952
Lebanon Urban Renewal Agency,
5.625% 06/01/19...................... 100,000 106,186
Port of St. Helens Pollution
Control, Portland General
Electric Co., Series B,
4.800% 06/01/10...................... 105,000 91,661
See Accompanying Notes to Financial Statements
115
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA NATIONAL MUNICIPAL BOND FUND (CONT.)
JUNE 30, 2003 (UNAUDITED)
PAR VALUE
----------- -------------
Portland Community College District,
Series 2001 B,
5.250% 06/01/12...................... $ 100,000 $ 114,529
Redmond Urban Renewal
Agency, Downtown Area B,
5.650% 06/01/13...................... 100,000 104,232
Salem Hospital Facilities Authority,
Capital Manor, Inc., Series 1994,
7.500% 12/01/24...................... 150,000 156,081
School Boards Association, Flexfund
Financing Program, Series E,
5.500% 06/01/05...................... 100,000 100,246
State Housing & Community
Services Department, Single Family
Mortgage Program, Series B,
6.000% 07/01/12...................... 35,000 37,010
State Veterans Welfare, Series 75,
5.875% 10/01/18...................... 20,000 20,928
Sunriver Library County Service District,
5.750% 06/01/04...................... 20,000 20,857
Washington & Clackamas Counties
School District No. 23J Tigard,
Series 2000,
(a) 06/15/21......................... 300,000 127,443
Washington County Housing Authority:
Affordable Housing Pool, Series A,
6.000% 07/01/20...................... 100,000 98,847
Multi-Family Tualatin Meadows,
5.900% 11/01/18...................... 100,000 106,721
West Linn Oregon Water System,
6.000% 10/01/20...................... 165,000 178,875
-------------
2,149,806
-------------
SOUTH CAROLINA (1.3%)
Charleston County School District,
Series 2001,
5.000% 02/01/18...................... 200,000 217,172
-------------
SOUTH DAKOTA (1.0%)
State Building Authority, Lease
Capital Appreciation, Series 1996 A,
(a) 12/01/13......................... 250,000 168,285
-------------
TENNESSEE (3.8%)
Lawrenceburg Public Building Authority,
Electric System Public Works,
Series C,
5.500% 07/01/16...................... 295,000 335,686
PAR VALUE
----------- -------------
Metropolitan Government Nashville,
Series 2002 A,
5.125% 10/01/13...................... $ 285,000 $ 323,831
-------------
659,517
-------------
TEXAS (10.3%)
Amarillo Health Facilities Corp.,
Baptist St. Anthony's Hospital Corp.,
5.500% 01/01/13...................... 100,000 114,780
Cleburne Capital Appreciation
Certificates of Obligation,
Series 1998,
(a) 02/15/17......................... 450,000 223,479
Donna Independent School District,
Series 2002,
5.000% 02/15/14...................... 250,000 279,735
Harris County Health Facilities,
de Teco Project, Series 1999 B,
5.700% 02/15/15...................... 150,000 171,153
Laredo Sports Venue Sales Tax,
5.750% 03/15/13...................... 200,000 229,602
Lubbock Health Facility Development,
St. Joseph's Health System,
5.250% 07/01/12...................... 150,000 159,198
Magnolia Independent School District,
5.250% 08/15/17...................... 280,000 310,036
North Texas Municipal Water District,
Texas Water System Revenue,
5.000% 09/01/14...................... 250,000 274,793
-------------
1,762,776
-------------
WASHINGTON (13.8%)
Grant County Public Hospital,
District No. 3,
Columbia Basin Hospital,
5.250% 12/01/18...................... 170,000 176,293
Jefferson County,
Public Utility District No. 1,
Water & Sewer:
5.250% 05/01/16...................... 50,000 53,101
5.250% 05/01/17...................... 50,000 52,809
King County Public Hospital District
No. 4, Snoqualmie Valley Hospital,
7.000% 12/01/11...................... 150,000 160,707
Pierce County Housing Authority,
5.400% 12/01/13...................... 100,000 98,976
Port of Grays Harbor,
6.375% 12/01/14...................... 150,000 171,326
Seattle Municipal Light & Power:
5.000% 07/01/13...................... 235,000 257,208
6.000% 10/01/16...................... 150,000 176,127
See Accompanying Notes to Financial Statements
116
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
PAR VALUE
----------- -------------
Shelton Water & Sewer,
5.250% 12/01/18...................... $ 50,000 $ 53,100
State Certificates of
Participation, Department of
General Administration,
5.400% 07/01/13...................... 100,000 109,729
State Health Care Facilities
Authority Revenue, Grays
Harbor Community Hospital,
Series 1996,
5.700% 07/01/16...................... 200,000 217,866
State Public Power Supply System:
Nuclear Project No. 1 Revenue,
Series 1997 B,
5.125% 07/01/14...................... 300,000 325,008
Nuclear Project No. 2 Refunding,
Series A,
5.000% 07/01/11...................... 50,000 54,793
Nuclear Project No. 3 Revenue,
Capital Appreciation,
Series 1989 B,
(a) 07/01/12......................... 145,000 101,993
Tacoma Solid Waste Utilities:
Pre-refunded, Series 1997 B,
6.000% 12/01/09...................... 15,000 18,141
Unrefunded, Series 1997 B,
6.000% 12/01/09...................... 85,000 101,856
Thurston County School
District No. 401, Rochester,
4.800% 12/01/07...................... 55,000 55,596
Toppenish,
4.600% 12/01/06...................... 65,000 70,679
University of Washington Educational
Research Properties Lease,
4225 Roosevelt Project, Series A,
5.375% 06/01/29...................... 100,000 100,801
Yakima County
School District No. 119 Selah,
5.000% 12/01/06...................... 10,000 11,121
-------------
2,367,230
-------------
WISCONSIN (3.5%)
Door County, Corporate Purpose,
Series 2002 A,
5.000% 09/01/13...................... 300,000 331,767
Marshall School District,
Series 2002 A,
5.000% 03/01/14...................... 250,000 275,520
-------------
607,287
-------------
PAR VALUE
----------- -------------
WYOMING (0.6%)
Municipal Power Agency,
Power Supply Refunding,
Series 1998,
5.250% 01/01/11...................... $ 100,000 $ 111,236
-------------
Total Municipal Bonds
(Cost of $15,683,459)................ 16,749,379
-------------
TAX EXEMPT MONEY
MARKET INVESTMENT (0.7%) SHARES
SEI Tax Exempt Trust,
(Cost of $128,600)................... 128,600 128,600
-------------
TOTAL INVESTMENTS (98.3%)
(Cost of $15,812,059) (b) ........... 16,877,979
-------------
OTHER ASSETS & LIABILITIES, NET (1.7%)..... 290,819
-------------
NET ASSETS (100.0%)........................ $ 17,168,798
=============
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Zero coupon bond.
(b) Cost for federal income tax purposes is $15,808,720.
ACRONYM NAME
------- ----
AMBAC American Municipal Bond Assurance Corp.
TCRS Transferable Custodial Receipts
COLUMBIA OREGON MUNICIPAL BOND FUND
JUNE 30, 2003 (UNAUDITED)
PAR VALUE
----------- -------------
GENERAL OBLIGATION BONDS (40.7%)
STATE OF OREGON GENERAL OBLIGATIONS (5.7%)
Board of Higher Education:
4.875% 08/01/19...................... $ 1,000,000 $ 1,050,040
Series A:
5.250% 08/01/14...................... 1,480,000 1,676,796
5.250% 08/01/16...................... 5,330,000 5,926,960
5.250% 08/01/18...................... 3,390,000 3,707,541
Deferred Interest, Series A:
(a) 08/01/14......................... 490,000 319,161
(a) 08/01/17......................... 1,050,000 570,811
Elderly & Disabled Housing,
Series B, Refunding :
4.950% 08/01/20...................... 1,000,000 1,048,290
6.250% 08/01/13...................... 215,000 217,885
State of Oregon, Series A,
5.250% 10/15/15...................... 1,735,000 1,976,061
See Accompanying Notes to Financial Statements
117
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA OREGON MUNICIPAL BOND FUND (CONT.)
JUNE 30, 2003 (UNAUDITED)
PAR VALUE
----------- -------------
Veteran's Welfare:
5.850% 10/01/15...................... $ 635,000 $ 668,598
7.300% 07/01/08...................... 1,170,000 1,446,178
8.000% 01/01/08...................... 1,275,000 1,583,270
8.000% 07/01/08...................... 580,000 735,046
8.250% 07/01/07...................... 540,000 667,775
9.200% 04/01/07...................... 2,390,000 3,004,732
9.200% 10/01/08...................... 385,000 514,356
Series 80 A,
5.700% 10/01/32...................... 5,000,000 5,215,350
-------------
30,328,850
-------------
GENERAL OBLIGATIONS (18.1%)
Aurora,
5.600% 06/01/24...................... 1,205,000 1,258,213
Canyonville South Umpqua
Rural Fire District,
5.400% 07/01/31...................... 610,000 641,159
Clackamas County:
Lake Oswego Series:
5.375% 06/01/15...................... 2,450,000 2,760,097
5.375% 06/01/16...................... 1,295,000 1,441,866
5.375% 06/01/17...................... 2,535,000 2,815,143
School District No. 62C,
5.375% 06/15/17...................... 4,000,000 4,428,040
School District No. 086,
6.000% 06/15/16...................... 2,350,000 2,760,545
School District No. 108,
5.375% 06/15/15...................... 1,055,000 1,200,896
Clackamas & Washington Counties,
School District No. 003JT,
(a) 06/15/17......................... 6,000,000 3,239,700
Coos Bay,
4.900% 09/01/07...................... 2,390,000 2,656,294
Crook County School District,
5.000% 02/01/14...................... 2,860,000 3,189,844
Eugene Public Safety Facilities:
5.500% 06/01/10...................... 850,000 931,183
5.625% 06/01/13...................... 1,295,000 1,421,301
Jackson County:
School District No. 4,
Phoenix-Talent,
5.500% 06/15/16...................... 1,000,000 1,140,950
School District No. 6, Central Point,
6.000% 06/15/09...................... 1,090,000 1,295,007
School District No. 9, Eagle Point,
5.625% 06/15/15...................... 1,920,000 2,201,453
PAR VALUE
----------- -------------
Lane County, School District
No. 4J Eugene, Refunding:
5.000% 07/01/12...................... $ 2,470,000 $ 2,809,329
5.250% 07/01/13...................... 1,000,000 1,161,760
Metro Washington Park Zoo,
Series A,
5.300% 01/15/11...................... 1,000,000 1,100,880
Multnomah-Clackamas Counties,
School District No. 10JT, Gresham,
5.250% 06/01/17...................... 1,620,000 1,711,109
Multnomah County,
Series A,
5.500% 04/01/19...................... 2,395,000 2,647,098
Portland Community College
District, Series A:
5.375% 06/01/14...................... 1,925,000 2,190,034
5.375% 06/01/16...................... 2,705,000 3,029,519
5.375% 06/01/17...................... 2,540,000 2,824,378
Portland Limited Tax:
Series A:
3.400% 06/01/13...................... 5,640,000 5,661,206
4.900% 04/01/12...................... 1,430,000 1,545,501
5.750% 06/01/14...................... 700,000 720,027
Series B:
(a) 06/01/12......................... 1,750,000 1,266,738
(a) 06/01/13......................... 1,500,000 1,034,055
(a) 06/01/14......................... 1,000,000 655,560
(a) 06/01/16......................... 3,500,000 2,042,075
(a) 06/01/18......................... 4,000,000 2,079,240
(a) 06/01/19......................... 4,000,000 1,962,320
(a) 06/01/20......................... 4,000,000 1,839,560
Portland Parks, Series A, Refunding,
5.000% 06/01/15...................... 3,950,000 4,316,007
Salem-Keizer School District No. 24J,
5.000% 06/01/19...................... 3,500,000 3,725,540
Washington & Clackamas Counties:
Deferred Interest, Series A,
(a) 06/01/10......................... 1,520,000 1,205,451
School District No. 23J, Tigard,
(a) 06/15/18......................... 2,700,000 1,386,801
Washington County:
5.500% 06/01/16...................... 2,785,000 3,155,210
Criminal Justice Facilities, Refunding,
5.000% 12/01/10...................... 1,400,000 1,555,302
School District No. 48J, Beaverton:
5.125% 01/01/14...................... 2,000,000 2,218,460
5.125% 01/01/17...................... 1,820,000 1,963,853
5.125% 01/01/18...................... 2,260,000 2,421,929
See Accompanying Notes to Financial Statements
118
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
PAR VALUE
----------- -------------
Washington, Multnomah &
Yamhill Counties
School District No. 1J:
5.000% 11/01/13...................... $ 1,375,000 $ 1,577,689
5.000% 06/01/13...................... 1,500,000 1,667,730
5.250% 06/01/14...................... 500,000 560,460
-------------
95,416,512
-------------
INSURED GENERAL OBLIGATIONS (16.9%)
Benton & Linn Counties School
District No. 509J, Corvallis,
5.000% 06/01/17...................... 2,665,000 2,937,550
Chemeketa Community College
District, Series B,
5.600% 06/01/14...................... 1,180,000 1,308,891
Clackamas Community College:
5.250% 06/15/15...................... 1,500,000 1,688,880
5.250% 06/15/18...................... 1,560,000 1,719,853
Clackamas County, School
District No. 12,
North Clackamas:
5.250% 06/01/11...................... 1,000,000 1,118,040
5.250% 06/01/15...................... 2,750,000 3,023,020
Columbia County, School District
No. 502, Deferred Interest:
(a) 06/01/12......................... 1,530,000 1,108,454
(a) 06/01/13......................... 1,685,000 1,168,396
(a) 06/01/14......................... 1,025,000 674,829
Coos County, School District
No. 13, North Bend,
5.500% 06/15/15...................... 1,765,000 2,060,055
Deschutes County, School
District No. 1, Series A,
5.500% 06/15/18...................... 1,000,000 1,132,770
Jefferson County, School
District No. 509J,
Madras School District,
5.250% 06/15/18...................... 1,075,000 1,197,002
Josephine County, School
District No. 7, Grants Pass,
5.700% 06/01/13...................... 2,000,000 2,245,740
Lane & Douglas Counties,
School District No. 45J3,
4.450% 06/15/18...................... 1,615,000 1,679,519
Lane County, School District No. 19,
Springfield, Refunding:
6.000% 10/15/12...................... 1,740,000 2,131,065
6.000% 10/15/14...................... 1,310,000 1,611,418
PAR VALUE
----------- -------------
Lincoln County School District,
5.600% 06/15/10...................... $ 3,480,000 $ 4,004,158
Linn Benton Community College:
(a) 06/15/13......................... 1,000,000 692,420
(a) 06/15/14......................... 1,000,000 655,980
Linn County, Community
School District No. 9,
Lebanon:
(a) 06/15/15......................... 710,000 776,903
(a) 06/15/21......................... 2,000,000 2,124,680
Marion County Certificates of
Participation, Courthouse
Square Project, Series A,
4.400% 06/01/10...................... 430,000 466,451
Marion County, School
District No. 103C, Woodburn,
Series B:
(a) 11/01/09......................... 2,500,000 2,077,900
(a) 11/01/11......................... 2,210,000 1,662,141
Multnomah-Clackamas Counties,
Centennial School District No. 28-302:
5.375% 06/15/16...................... 2,055,000 2,310,190
5.375% 06/15/17...................... 2,280,000 2,546,395
5.375% 06/15/18...................... 2,490,000 2,775,454
Multnomah County:
School District No. 7, Reynolds:
5.000% 06/15/18...................... 1,000,000 1,066,960
5.625% 06/15/14...................... 2,670,000 3,079,418
5.625% 06/15/17...................... 1,000,000 1,131,740
School District No. 40,
5.000% 02/01/14...................... 1,790,000 1,973,940
Series A MBIA-IBC (AMT),
5.500% 04/01/18...................... 2,010,000 2,279,300
Northern Oregon Corrections:
5.250% 09/15/12...................... 1,000,000 1,098,480
5.300% 09/15/13...................... 1,000,000 1,105,060
Salem-Keizer School District No. 24J:
5.000% 06/01/15...................... 1,000,000 1,087,100
5.000% 06/01/16...................... 1,180,000 1,272,913
State Department Administrative
Services, Certificates of
Participation, Refunding:
Series A:
4.500% 05/01/12...................... 1,020,000 1,098,846
5.000% 05/01/13...................... 4,240,000 4,646,489
5.000% 05/01/14...................... 1,000,000 1,090,860
Series C,
5.250% 11/01/17...................... 5,000,000 5,592,600
See Accompanying Notes to Financial Statements
119
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA OREGON MUNICIPAL BOND FUND (CONT.)
JUNE 30, 2003 (UNAUDITED)
PAR VALUE
----------- -------------
Washington & Clackamas Counties,
School District No. 23J, Tigard:
5.375% 06/15/17...................... $ 1,500,000 $ 1,694,145
5.375% 06/15/20...................... 2,435,000 2,708,840
Washington County:
School District No. 15,
Forest Grove:
5.250% 06/01/10...................... 1,000,000 1,151,020
5.375% 06/15/13...................... 2,070,000 2,364,023
5.375% 06/15/15...................... 2,515,000 2,862,799
School District No. 48J, Beaverton:
5.100% 06/01/12...................... 500,000 549,025
5.250% 08/01/10...................... 1,150,000 1,286,815
School District No. 088J,
Sherwood, Unrefunded,
6.100% 06/01/12...................... 185,000 201,926
Yamhill County:
School District No. 029J,
5.250% 06/15/16...................... 2,535,000 2,849,391
School District No. 40,
6.000% 06/01/09...................... 500,000 595,580
-------------
89,685,424
-------------
Total General Obligation Bonds
(Cost of $200,633,120)............... 215,430,786
-------------
REVENUE BONDS (53.5%)
OREGON REVENUE (35.2%)
Albany Hospital Facility Authority,
Mennonite Home,
5.625% 10/01/17...................... 635,000 634,181
Bend Municipal Airport Project,
Series B (AMT),
5.375% 06/01/13...................... 150,000 165,805
Benton County Hospital Facilities
Authority, Samaritan Health
Services Project, Refunding:
4.400% 10/01/07...................... 220,000 235,259
4.800% 10/01/11...................... 245,000 262,777
5.200% 10/01/17...................... 2,255,000 2,350,815
Clackamas County Hospital
Facility Authority:
Kaiser Permanente, Series A,
5.375% 04/01/14...................... 7,085,000 7,607,519
PAR VALUE
----------- -------------
Legacy Health System:
4.600% 05/01/10...................... $ 885,000 $ 953,136
5.000% 02/15/15...................... 1,510,000 1,596,689
5.000% 02/15/16...................... 1,010,000 1,059,571
5.375% 02/15/12...................... 3,135,000 3,468,062
5.500% 02/15/13...................... 2,385,000 2,606,376
5.500% 02/15/14...................... 5,450,000 6,006,009
5.750% 05/01/12...................... 2,000,000 2,311,460
Legacy Health System, Refunding:
5.250% 05/01/21...................... 1,500,000 1,562,910
5.750% 05/01/16...................... 1,500,000 1,662,855
Odd Fellows Home, Series A,
Refunding,
5.875% 09/15/21...................... 1,190,000 1,188,632
Robison Jewish Home Project,
6.250% 10/01/21...................... 1,650,000 1,734,332
Willamette Falls Hospital Project:
5.750% 04/01/14...................... 1,005,000 1,053,883
6.000% 04/01/19...................... 1,750,000 1,811,355
Willamette View, Inc. Project:
6.000% 11/01/08...................... 670,000 694,509
Series A,
6.850% 11/01/15...................... 1,580,000 1,718,977
Clackamas County Housing
Authority, Multi-Family Housing,
Easton Ridge, Series A,
5.800% 12/01/16...................... 2,255,000 2,357,512
Clatsop Care Center Health District,
Senior Housing,
6.875% 08/01/28...................... 500,000 516,660
Deschutes County Hospital
Facilities Authority:
5.750% 01/01/09...................... 1,670,000 1,766,743
Cascade Health Services, Inc.:
5.500% 01/01/22...................... 2,000,000 2,097,420
5.600% 01/01/27...................... 5,550,000 5,827,056
5.600% 01/01/32...................... 2,000,000 2,097,000
Deschutes Valley Water District,
5.875% 09/01/05...................... 2,315,000 2,515,039
Eugene Airport, Refunding (AMT):
5.650% 05/01/06...................... 325,000 352,862
5.650% 05/01/07...................... 555,000 611,588
5.700% 05/01/08...................... 515,000 571,501
Hillsboro Hospital Facility Authority,
Tuality Healthcare,
5.750% 10/01/12...................... 3,810,000 3,948,227
Lebanon Urban Renewal Agency,
5.625% 06/01/19...................... 1,000,000 1,061,860
Lebanon Wastewater, Refunding,
5.750% 06/01/11...................... 1,225,000 1,262,914
See Accompanying Notes to Financial Statements
120
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
PAR VALUE
----------- -------------
Multnomah County Educational Facilities,
University of Portland Project:
5.700% 04/01/15...................... $ 1,000,000 $ 1,107,030
6.000% 04/01/20...................... 500,000 541,035
6.000% 04/01/25...................... 500,000 539,530
Myrtle Point Water,
6.000% 12/01/20...................... 510,000 553,748
North Clackamas Parks & Recreation
District Facilities,
5.700% 04/01/13...................... 2,920,000 3,386,382
Northern Wasco County,
People's Utility District Electric:
(a) 02/01/06......................... 610,000 554,344
(a) 02/01/07......................... 585,000 495,162
(a) 02/01/08......................... 610,000 481,028
(a) 02/01/11......................... 500,000 317,260
Oregon State Department of
Transportation, Highway User Tax,
Series A:
5.125% 11/15/26...................... 555,000 593,251
5.500% 11/15/16...................... 2,500,000 2,875,900
Oregon State Economic Development,
Dove Lewis 24 Hour Emergency
Animal Hospital,
7.000% 12/01/19...................... 1,425,000 1,530,764
Oregon State Health, Housing,
Educational & Cultural
Facilities Authority:
Authority/Aquarium:
4.750% 10/01/08...................... 1,550,000 325,500
4.900% 10/01/09...................... 670,000 140,700
Goodwill Industries Lane County,
Series A,
6.650% 11/15/22...................... 3,955,000 4,069,893
Linfield College Project, Series A:
4.550% 10/01/08...................... 525,000 564,333
4.650% 10/01/09...................... 555,000 594,488
5.500% 10/01/18...................... 1,000,000 1,041,420
Reed College Project, Series A,
5.300% 07/01/11...................... 500,000 543,655
St. Anthony's Village Housing,
Series A (AMT),
7.250% 06/01/28...................... 1,380,000 1,421,717
Oregon State Housing & Community
Services:
Department of Housing,
Finance Assisted Insured
Multi-Unit B,
6.800% 07/01/13...................... 8,360,000 8,362,592
Department Mortgage Multi-Family
Housing, Series B (AMT),
6.000% 07/01/31...................... 6,935,000 7,283,068
PAR VALUE
----------- -------------
Department Mortgage Single
Family Program:
Series A,
4.850% 07/01/10...................... $ 255,000 $ 273,036
Series A (AMT),
6.200% 07/01/27...................... 2,440,000 2,568,124
Series B (AMT),
5.250% 07/01/30...................... 740,000 754,511
Series D,
6.700% 07/01/13...................... 1,000,000 1,007,810
Series E:
5.375% 07/01/21...................... 3,770,000 3,958,349
5.700% 07/01/12...................... 985,000 1,050,355
5.800% 07/01/14...................... 875,000 913,412
6.000% 07/01/20...................... 2,445,000 2,621,113
Series F (AMT),
5.650% 07/01/28...................... 1,170,000 1,210,189
Series F MBIA-IBC (AMT),
5.650% 07/01/28...................... 875,000 905,056
Series G (AMT),
5.700% 07/01/32...................... 1,155,000 1,197,712
Series H (AMT),
5.500% 07/01/17...................... 1,740,000 1,811,827
Series J,
5.150% 07/01/24...................... 2,840,000 2,894,784
Series L,
6.050% 07/01/20...................... 750,000 801,150
Series L (AMT),
5.900% 07/01/31...................... 3,955,000 4,119,172
Series M (AMT),
5.800% 07/01/12...................... 655,000 701,079
Series Q:
4.700% 07/01/15...................... 820,000 849,290
4.900% 07/01/17...................... 805,000 822,082
Mountain Shadows Apts. B-1,
6.250% 12/01/05...................... 4,000,000 3,702,280
Oregon State Housing Finance,
5.800% 07/01/09...................... 250,000 250,787
Port Morrow,
6.700% 06/01/20...................... 2,000,000 2,054,880
Port of St. Helens:
5.600% 08/01/14...................... 315,000 327,011
5.750% 08/01/19...................... 425,000 441,575
Port of St. Helens Pollution Control,
Portland General Electric Co:
Series A,
4.800% 04/01/10...................... 5,195,000 4,533,832
Series B,
4.800% 06/01/10...................... 3,500,000 3,055,360
See Accompanying Notes to Financial Statements
121
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA OREGON MUNICIPAL BOND FUND (CONT.)
JUNE 30, 2003 (UNAUDITED)
PAR VALUE
----------- -------------
Portland Housing Authority:
Multi-Family Housing, Senior
Lien Civic Apartments,
Series A,
5.600% 01/01/18...................... $ 1,240,000 $ 1,299,570
Pool Housing, Series A, Refunding,
4.500% 01/01/09...................... 660,000 702,913
Portland Sewer System Revenue,
Series A, Refunding,
5.000% 06/01/12...................... 4,835,000 5,299,644
Powell Valley Water District,
6.000% 02/01/15...................... 620,000 674,703
Prineville Sewer First Lien,
6.500% 07/01/04...................... 265,000 277,895
Redmond Urban Renewal Agency:
Downtown Area B:
5.650% 06/01/13...................... 720,000 750,470
5.850% 06/01/19...................... 785,000 818,826
South Airport Industrial Area A,
Refunding,
5.700% 06/01/19...................... 650,000 664,033
Reedsport Water,
7.000% 10/01/14...................... 520,000 542,131
Salem Hospital Facility Authority:
5.000% 08/15/18...................... 2,000,000 2,056,460
5.250% 08/15/14...................... 4,860,000 5,245,592
Capital Manor, Inc.,
7.500% 12/01/24...................... 905,000 941,689
Sheridan Water Revenue:
6.200% 05/01/15...................... 625,000 695,356
6.450% 05/01/20...................... 520,000 575,130
Sheridan Water Revenue, Refunding,
5.350% 04/01/18...................... 300,000 316,419
South Fork Water Board First Lien,
5.450% 02/01/14...................... 1,300,000 1,327,300
State of Oregon French American
International School Project,
Series A,
6.250% 04/01/27...................... 5,370,000 5,639,413
Umatilla County, Hospital Facility
Authority, Catholic Health
Initiatives, Series A:
5.750% 12/01/20...................... 530,000 566,305
6.000% 12/01/30...................... 4,825,000 5,211,241
PAR VALUE
----------- -------------
Veneta Urban Renewal Agency:
5.375% 02/15/16...................... $ 700,000 $ 747,992
5.625% 06/15/21...................... 1,100,000 1,158,036
Washington County Housing
Authority:
Affordable Housing, Series A,
6.000% 07/01/20...................... 2,000,000 1,976,940
Affordable Housing Pool, Series A:
5.750% 07/01/23...................... 1,000,000 1,017,550
6.000% 07/01/23...................... 1,000,000 981,740
Multi-Family Bethany Meadows
Project (AMT),
6.250% 08/01/10...................... 775,000 776,356
-------------
186,082,774
-------------
INSURED REVENUE (18.3%)
Clackamas County, Hospital
Facilities Authority, Legacy
Health System, MBIA IBC,
5.500% 02/15/13...................... 495,000 564,493
Deschutes County, Certificates
of Participation, Series A,
5.050% 06/01/17...................... 420,000 443,831
Emerald Peoples Utilities District:
7.350% 11/01/10...................... 2,160,000 2,785,968
7.350% 11/01/11...................... 2,000,000 2,611,900
7.350% 11/01/12...................... 2,490,000 3,297,806
7.350% 11/01/13...................... 2,675,000 3,582,494
Series A,
5.250% 11/01/20...................... 605,000 664,453
Eugene Electric Utilities System:
4.750% 08/01/13...................... 1,000,000 1,013,010
Series B:
4.550% 08/01/10...................... 600,000 601,716
4.650% 08/01/11...................... 375,000 376,102
5.000% 08/01/18...................... 1,000,000 1,003,210
5.000% 08/01/23...................... 525,000 526,685
Series B, Refunding,
5.250% 08/01/13...................... 1,040,000 1,180,660
Marion County, Certificates of
Participation, Courthouse
Square Project, Series A,
4.600% 06/01/12...................... 355,000 381,717
Medford Hospital Facilities
Authority, Asante Health
System, Series A:
5.250% 08/15/08...................... 1,645,000 1,878,442
5.250% 08/15/10...................... 1,500,000 1,692,045
5.250% 08/15/11...................... 800,000 893,464
See Accompanying Notes to Financial Statements
122
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
PAR VALUE
----------- -------------
Multnomah County Educational
Facilities Authority, University
of Portland Project, Refunding:
5.000% 04/01/11...................... $ 1,150,000 $ 1,262,183
5.750% 04/01/10...................... 2,000,000 2,275,840
Ontario Catholic Health Holy Rosary
Medical Center,
5.500% 11/15/12...................... 1,500,000 1,636,125
Oregon State Department of
Administrative Services:
Certificates of Participation:
Series A,
5.300% 05/01/08...................... 750,000 845,025
Series B:
5.000% 11/01/12...................... 1,000,000 1,100,100
5.000% 11/01/13...................... 1,000,000 1,094,090
Lottery Education Project, Series A:
5.000% 04/01/14...................... 2,705,000 2,984,291
5.250% 04/01/11...................... 4,000,000 4,493,440
5.250% 04/01/13...................... 1,600,000 1,776,784
5.250% 04/01/15...................... 1,315,000 1,452,996
Oregon State Economic
Community Development
Department, Series A,
5.375% 01/01/11...................... 1,105,000 1,239,501
Oregon State Health, Housing,
Educational & Cultural
Facilities Authority:
Lewis & Clark College,
6.000% 10/01/13...................... 965,000 1,036,506
Reed College Project, Series A,
5.100% 07/01/10...................... 900,000 1,021,581
Oregon State Health Sciences
University, Series A:
(a) 07/01/09......................... 1,530,000 1,284,037
(a) 07/01/12......................... 1,315,000 954,046
(a) 07/01/14......................... 2,495,000 1,633,876
(a) 07/01/15......................... 4,325,000 2,677,824
(a) 07/01/21......................... 12,435,000 5,327,403
5.250% 07/01/22...................... 1,000,000 1,078,640
Oregon State Housing & Community
Services Department, Single Family
Mortgage Project, Series J (AMT),
5.750% 07/01/29...................... 7,300,000 7,572,874
Port of Portland International Airport:
Series 11 (AMT),
5.625% 07/01/13...................... 1,000,000 1,090,820
PAR VALUE
----------- -------------
Series 12B, Refunding,
5.250% 07/01/12...................... $ 1,000,000 $ 1,106,490
Series 12C (AMT):
4.750% 07/01/10...................... 2,900,000 3,119,704
5.000% 07/01/13...................... 1,000,000 1,061,280
5.000% 07/01/14...................... 1,750,000 1,856,348
Series D,
5.250% 07/01/12...................... 1,750,000 1,940,680
Portland Arena Gas Tax:
(a) 06/01/16......................... 1,100,000 533,808
(a) 07/01/17......................... 2,320,000 1,050,519
Portland Gas Tax, Series A,
5.800% 06/01/16...................... 1,640,000 1,812,905
Portland Housing Authority,
Multi-Family Housing,
Lovejoy Station Apartments
Project (AMT),
5.900% 07/01/23...................... 1,000,000 1,067,880
Portland Urban Renewal &
Redevelopment,
South Park Blocks, Series A:
5.750% 06/15/17...................... 2,065,000 2,406,159
5.750% 06/15/19...................... 2,580,000 2,992,232
Salem Water & Sewer,
5.300% 06/01/15...................... 1,500,000 1,676,220
Tri-County Metropolitan Transportation
District:
Series 1,
5.400% 06/01/19...................... 4,200,000 4,413,654
Series A,
5.000% 09/01/15...................... 1,000,000 1,119,900
Tualatin Hills Park & Recreation
District,
5.750% 03/01/14...................... 990,000 1,180,625
Washington County Housing
Authority, Multi-Family Housing,
Tualatin Meadows (AMT),
5.900% 11/01/18...................... 995,000 1,061,874
Washington County Unified
Sewer Agency,
5.500% 10/01/16...................... 1,250,000 1,396,775
-------------
97,133,031
-------------
Total Revenue Bonds
(Cost of $268,707,189)............... 283,215,805
-------------
PRE-REFUNDED BOND (0.1%)
Oregon State City Sewer,
6.500% 10/01/07
(Cost of $497,292)................... 500,000 550,980
-------------
See Accompanying Notes to Financial Statements
123
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA OREGON MUNICIPAL BOND FUND (CONT.)
JUNE 30, 2003 (UNAUDITED)
PAR VALUE
----------- -------------
OTHER BONDS (2.9%)
Hood River Urban Renewal Agency,
6.250% 12/15/11...................... $ 1,250,000 $ 1,383,475
Lebanon Special Obligation,
Lease Water, Refunding,
5.400% 10/01/13...................... 755,000 769,768
Lebanon Urban Renewal Agency:
5.750% 06/01/15...................... 1,120,000 1,196,798
6.000% 06/01/20...................... 1,580,000 1,688,341
Medford Urban Renewal,
5.875% 09/01/10...................... 500,000 543,335
Multnomah County, Certificates
of Participation,
4.550% 08/01/10...................... 1,000,000 1,089,210
Oregon State Department of
Administrative Services,
Certificates of Participation,
Series B, Refunding:
5.250% 05/01/10...................... 840,000 965,446
5.250% 05/01/11...................... 2,000,000 2,304,760
Portland Airport Way Urban
Renewal & Redevelopment,
Convention Center, Series A:
5.750% 06/15/17...................... 1,500,000 1,747,815
5.750% 06/15/18...................... 2,050,000 2,377,549
Seaside Urban Renewal Agency,
Greater Seaside Urban Renewal,
5.250% 06/01/15...................... 1,000,000 1,063,600
Wilsonville Limited Tax Improvement,
5.000% 12/01/20...................... 445,000 449,672
-------------
Total Other Bonds
(Cost of $14,327,288)................ 15,579,769
-------------
U.S. TERRITORIES BONDS (0.5%)
Guam Housing Corp., Single Family
Mortgage-Backed Securities,
Series A (AMT),
5.750% 09/01/31...................... 175,000 191,056
Puerto Rico Housing Finance Corp.,
Multi-Family Mortgage Portfolio A-1,
7.500% 04/01/22...................... 1,045,000 1,045,115
Virgin Islands Public Finance Authority,
Unrefunded Balance, Series A,
7.300% 10/01/18...................... 1,185,000 1,606,682
-------------
Total U.S. Territories Bonds
(Cost of $2,596,513)................. 2,842,853
-------------
SHARES VALUE
----------- -------------
TAX EXEMPT MONEY MARKET
INVESTMENT (0.5%)
SEI Tax Exempt Trust,
(Cost of $2,459,832)................. 2,459,832 $ 2,459,832
-------------
TOTAL INVESTMENTS (98.2%)
(Cost of $489,221,234) (b)........... 520,080,025
-------------
OTHER ASSETS & LIABILITIES, NET (1.8%)..... 9,298,678
-------------
NET ASSETS (100.0%)........................ $ 529,378,703
=============
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Zero coupon bond.
(b) Cost for federal income tax purposes is $489,093,027.
ACRONYM NAME
------- ----
AMT Alternative Minimum Tax
IBC Insured Bond Certificates
MBIA Municipal Bond Insurance Association
COLUMBIA HIGH YIELD FUND
JUNE 30, 2003 (UNAUDITED)
PAR VALUE
----------- -------------
CORPORATE NOTES & BONDS (90.4%)
AEROSPACE & DEFENSE (2.4%)
K&F Industries,
9.625% 12/15/10 (a).................... $ 9,180,000 $ 10,189,800
L-3 Communications Corp.,
7.625% 06/15/12........................ 24,775,000 27,252,500
-------------
37,442,300
-------------
AMUSEMENT & RECREATION (2.3%)
Cinemark USA, Inc.,
9.000% 02/01/13 (a).................... 20,790,000 22,557,150
Speedway Motorsports, Inc.,
6.750% 06/01/13 (a).................... 12,910,000 13,361,850
-------------
35,919,000
-------------
AUTOMOTIVE & AUTO PARTS (2.6%)
American Axle & Manufacturing, Inc.,
Senior Subordinated Notes,
9.750% 03/01/09........................ 18,175,000 19,538,125
Lear Corp., Series B:
7.960% 05/15/05........................ 5,350,000 5,697,750
8.110% 05/15/09........................ 12,725,000 14,570,125
-------------
39,806,000
-------------
BROADCASTING (1.4%)
Sinclair Broadcasting Group, Inc.:
8.000% 03/15/12........................ 1,520,000 1,622,600
8.000% 03/15/12 (a).................... 11,190,000 11,945,325
8.750% 12/15/11........................ 6,610,000 7,254,475
-------------
20,822,400
-------------
See Accompanying Notes to Financial Statements
124
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
PAR VALUE
----------- -------------
CABLE TV (7.0%)
British Sky Broadcasting:
6.875% 02/23/09........................ $ 5,000,000 $ 5,650,000
7.300% 10/15/06........................ 7,425,000 8,316,000
CSC Holdings, Inc.:
Senior Notes,
7.875% 12/15/07........................ 7,950,000 8,128,875
Senior Subordinated Debentures:
9.875% 02/15/13........................ 11,770,000 12,299,650
10.500% 05/15/16....................... 3,150,000 3,433,500
Series B,
8.125% 08/15/09........................ 1,500,000 1,552,500
Mediacom LLC:
9.500% 01/15/13........................ 17,650,000 18,664,875
Series B,
8.500% 04/15/08........................ 6,500,000 6,565,000
Rogers Cable, Inc.:
6.250% 06/15/13 (a).................... 10,475,000 10,448,813
7.875% 05/01/12........................ 15,850,000 17,276,500
Rogers Communications, Inc.,
8.875% 07/15/07........................ 1,000,000 1,030,000
TCI Communications, Inc.,
8.750% 08/01/15........................ 10,750,000 13,964,583
-------------
107,330,296
-------------
CAPITAL GOODS (0.6%)
Kennametal, Inc.,
7.200% 06/15/12........................ 9,045,000 9,899,237
-------------
CASINOS & GAMING (6.5%)
Harrahs Operating Co., Inc.,
7.875% 12/15/05........................ 25,400,000 27,622,500
International Game Technology:
7.875% 05/15/04........................ 5,750,000 6,047,011
8.375% 05/15/09........................ 3,575,000 4,392,131
Park Place Entertainment Corp.:
7.875% 03/15/10........................ 150,000 161,250
8.875% 09/15/08........................ 500,000 551,250
9.375% 02/15/07........................ 30,075,000 33,308,062
Station Casinos, Inc.:
8.875% 12/01/08........................ 14,097,000 14,801,850
9.875% 06/01/10........................ 12,065,000 13,271,500
-------------
100,155,554
-------------
CHEMICALS (2.7%)
Airgas, Inc.,
9.125% 10/01/11........................ 8,134,000 9,089,745
Equistar Chemicals LP:
10.125% 09/01/08....................... 7,370,000 7,591,100
10.625% 05/01/11 (a)................... 4,805,000 4,925,125
PAR VALUE
----------- -------------
Ethyl Corp.,
8.875% 05/01/10 (a).................... $16,400,000 $ 16,728,000
MacDermid, Inc.,
9.125% 07/15/11........................ 2,145,000 2,397,038
-------------
40,731,008
-------------
COAL (2.0%)
Arch Western Finance LLC,
6.750% 07/01/13 (a).................. 16,890,000 17,312,250
Peabody Energy Corp.,
6.875% 03/15/13........................ 13,750,000 14,403,125
-------------
31,715,375
-------------
CONSUMER PRODUCTS (3.5%)
Hasbro, Inc.:
6.150% 07/15/08........................ 16,620,000 17,201,700
8.500% 03/15/06........................ 14,025,000 15,357,375
Playtex Products, Inc.,
9.375% 06/01/11........................ 1,050,000 1,050,000
Scotts Co.,
8.625% 01/15/09........................ 18,915,000 20,239,050
-------------
53,848,125
-------------
DIVERSIFIED MEDIA (4.9%)
DirecTV Holdings LLC,
8.375% 03/15/13 (a).................... 11,730,000 13,078,950
Houghton Mifflin Co.,
9.875% 02/01/13 (a).................... 16,340,000 17,728,900
Lamar Media Corp.:
7.250% 01/01/13 (a).................... 24,883,000 26,375,980
8.625% 09/15/07........................ 3,160,000 3,278,500
Lin Television Corp.,
6.500% 05/15/13 (a).................... 14,125,000 14,089,688
-------------
74,552,018
-------------
ENERGY (8.6%)
Chesapeake Energy Corp.:
7.500% 09/15/13 (a).................... 9,625,000 10,226,563
8.125% 04/01/11........................ 3,050,000 3,286,375
8.375% 11/01/08........................ 6,170,000 6,679,025
9.000% 08/15/12........................ 7,350,000 8,195,250
Grant Prideco:
9.000% 12/15/09 (a).................... 12,920,000 14,341,200
9.625% 12/01/07........................ 9,355,000 10,337,275
Key Energy Services, Inc.,
6.375% 05/01/13........................ 7,130,000 7,236,950
Pogo Producing Co.,
8.250% 04/15/11........................ 3,080,000 3,411,100
See Accompanying Notes to Financial Statements
125
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA HIGH YIELD FUND (CONT.)
JUNE 30, 2003 (UNAUDITED)
PAR VALUE
----------- -------------
Pride International, Inc.:
9.375% 05/01/07........................ $ 5,995,000 $ 6,189,837
10.000% 06/01/09....................... 6,950,000 7,610,250
Semco Energy, Inc.:
7.125% 05/15/08 (a).................... 620,000 647,900
7.750% 05/15/13 (a).................... 2,975,000 3,168,375
Vintage Petroleum, Inc.:
7.875% 05/15/11........................ 500,000 536,250
8.625% 02/01/09........................ 1,000,000 1,027,500
9.750% 06/30/09........................ 7,675,000 8,250,625
Westport Resources Corp.:
8.250% 11/01/11........................ 18,805,000 20,591,475
8.250% 11/01/11 (a).................... 1,175,000 1,286,625
XTO Energy, Inc.:
6.250% 04/15/13 (a).................... 1,600,000 1,700,000
7.500% 04/15/12........................ 15,015,000 17,042,025
-------------
131,764,600
-------------
ENVIRONMENTAL (2.4%)
Allied Waste North America, Inc.,
Series B,
10.000% 08/01/09....................... 29,070,000 30,886,875
Synagro Technologies, Inc.,
9.500% 04/01/09........................ 6,150,000 6,580,500
-------------
37,467,375
-------------
FINANCIALS (1.0%)
iStar Financial, Inc.:
7.000% 03/15/08........................ 10,450,000 10,938,590
8.750% 08/15/08........................ 2,890,000 3,150,100
-------------
14,088,690
-------------
FOOD, BEVERAGE & TOBACCO (3.7%)
Constellation Brands, Inc.:
8.000% 02/15/08........................ 1,500,000 1,646,250
8.125% 01/15/12........................ 9,015,000 9,736,200
8.500% 03/01/09........................ 8,900,000 9,345,000
8.625% 08/01/06........................ 5,100,000 5,559,000
Cott Beverages, Inc.,
8.000% 12/15/11........................ 27,650,000 29,862,000
-------------
56,148,450
-------------
HEALTH CARE (8.6%)
AdvancePCS,
8.500% 04/01/08........................ 8,700,000 9,352,500
AmerisourceBergen Corp.:
7.250% 11/15/12 (a).................... 12,130,000 13,161,050
8.125% 09/01/08........................ 16,375,000 18,012,500
PAR VALUE
----------- -------------
Apogent Technologies, Inc.,
6.500% 05/15/13 (a).................... $ 2,150,000 $ 2,219,875
HCA, Inc.:
6.910% 06/15/05........................ 7,025,000 7,452,759
6.950% 05/01/12........................ 2,750,000 2,930,598
7.000% 07/01/07........................ 1,000,000 1,072,727
7.875% 02/01/11........................ 2,875,000 3,219,735
8.750% 09/01/10........................ 11,150,000 12,988,356
Omnicare, Inc.:
6.125% 06/01/13........................ 3,950,000 4,029,000
Series B,
8.125% 03/15/21........................ 10,690,000 11,598,650
Province Healthcare Co.,
7.500% 06/01/13........................ 12,775,000 12,583,375
Select Medical Corp.,
9.500% 06/15/09........................ 11,200,000 12,166,000
Triad Hospitals, Inc., Series B,
8.750% 05/01/09........................ 19,200,000 20,424,000
-------------
131,211,125
-------------
HOMEBUILDERS (2.5%)
KB Home:
7.750% 02/01/10........................ 5,050,000 5,460,312
8.625% 12/15/08........................ 6,200,000 7,037,000
9.500% 02/15/11........................ 7,575,000 8,569,219
Toll Brothers, Inc.,
8.250% 02/01/11........................ 1,000,000 1,115,000
Toll Corp.:
7.750% 09/15/07........................ 3,670,000 3,812,213
8.000% 05/01/09........................ 5,765,000 6,175,756
8.125% 02/01/09........................ 3,750,000 3,989,063
8.250% 12/01/11........................ 2,200,000 2,464,000
-------------
38,622,563
-------------
HOTELS (2.7%)
Extended Stay America, Inc.:
9.150% 03/15/08........................ 10,890,000 11,366,437
9.875% 06/15/11........................ 9,000,000 9,675,000
Host Marriott LP:
Series E,
8.375% 02/15/06........................ 6,625,000 6,856,875
Series I,
9.500% 01/15/07........................ 875,000 940,625
ITT Corp.,
6.750% 11/15/05........................ 6,055,000 6,319,943
Starwood Hotels & Resorts
Worldwide, Inc.,
7.375% 05/01/07........................ 5,300,000 5,578,250
-------------
40,737,130
-------------
See Accompanying Notes to Financial Statements
126
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
PAR VALUE
----------- -------------
LEISURE (1.1%)
Six Flags, Inc.:
9.500% 02/01/09........................ $ 7,405,000 $ 7,293,925
9.750% 06/15/07........................ 4,980,000 4,930,200
9.750% 04/15/13........................ 4,625,000 4,578,750
-------------
16,802,875
-------------
PACKAGING (6.4%)
Ball Corp.:
6.875% 12/15/12 (a).................... 13,752,000 14,577,120
7.750% 08/01/06........................ 2,850,000 3,120,750
8.250% 08/01/08........................ 7,000,000 7,350,000
Constar International, Inc.,
11.000% 12/01/12....................... 11,400,000 12,312,000
Owens-Brockway Glass Container:
8.875% 02/15/09........................ 1,000,000 1,085,000
8.875% 11/15/12........................ 1,750,000 1,898,750
Owens-Illinois, Inc.:
7.150% 05/15/05........................ 8,225,000 8,430,625
7.350% 05/15/08........................ 5,400,000 5,400,000
8.100% 05/15/07........................ 6,400,000 6,560,000
Silgan Holdings, Inc.,
9.000% 06/01/09........................ 20,496,000 21,213,360
Smurfit-Stone Container Corp.,
8.250% 10/01/12........................ 4,580,000 4,912,050
Stone Container Corp.:
8.375% 07/01/12........................ 1,110,000 1,190,475
9.750% 02/01/11........................ 9,800,000 10,731,000
-------------
98,781,130
-------------
PAPER PRODUCTS (1.7%)
Abitibi-Consolidated, Inc.:
6.000% 06/20/13........................ 4,000,000 3,807,044
7.875% 08/01/09........................ 13,225,000 14,679,750
Cascades, Inc.,
7.250% 02/15/13 (a).................... 7,580,000 7,977,950
-------------
26,464,744
-------------
PRINTING & PUBLISHING (2.9%)
Dex Media East LLC,
12.125% 11/15/12 (a)................... 18,550,000 21,935,375
R.H. Donnelley Financial Corp.:
8.875% 12/15/10 (a).................... 1,320,000 1,458,600
10.875% 12/15/12....................... 17,445,000 20,323,425
-------------
43,717,400
-------------
RAILROAD (0.4%)
Kansas City Southern:
7.500% 06/15/09........................ 1,655,000 1,714,994
9.500% 10/01/08........................ 4,550,000 5,056,187
-------------
6,771,181
-------------
PAR VALUE
----------- -------------
REAL ESTATE INVESTMENT TRUST (REIT) (0.9%)
Health Care REIT, Inc.,
7.500% 08/15/07........................ $12,875,000 $ 13,756,667
-------------
RESTAURANTS (2.0%)
Yum! Brands, Inc.:
7.450% 05/15/05........................ 1,810,000 1,945,750
7.650% 05/15/08........................ 3,975,000 4,491,750
7.700% 07/01/12........................ 840,000 957,600
8.500% 04/15/06........................ 3,965,000 4,440,800
8.750% 04/15/11........................ 15,585,000 18,468,225
-------------
30,304,125
-------------
SERVICES (4.5%)
Corrections Corp. of America,
7.500% 05/01/11........................ 12,150,000 12,696,750
Iron Mountain, Inc.:
7.750% 01/15/15........................ 6,875,000 7,270,312
8.250% 07/01/11........................ 1,120,000 1,198,400
8.625% 04/01/13........................ 22,675,000 24,262,250
United Rentals, Inc.,
Series B:
8.800% 08/15/08........................ 8,175,000 7,929,750
9.250% 01/15/09........................ 7,495,000 7,382,575
9.500% 06/01/08........................ 3,700,000 3,718,500
10.750% 04/15/08....................... 1,000,000 1,092,500
Universal Compression, Inc.,
7.250% 05/15/10 (a).................... 3,975,000 4,114,125
-------------
69,665,162
-------------
SHIPPING (0.7%)
Teekay Shipping Corp.,
8.875% 07/15/11........................ 10,555,000 11,570,919
-------------
SUPERMARKETS (1.5%)
Winn-Dixie Stores, Inc.,
8.875% 04/01/08........................ 21,875,000 23,187,500
-------------
TELECOMMUNICATIONS (1.5%)
Nextel Communications, Inc.:
9.750% 10/31/07........................ 7,000,000 7,245,000
9.950% 02/15/08........................ 2,000,000 2,090,000
10.650% 09/15/07....................... 13,175,000 13,603,187
-------------
22,938,187
-------------
TRANSPORTATION (1.4%)
Offshore Logistics, Inc.,
6.125% 06/15/13 (a).................... 20,800,000 20,852,000
-------------
Total Corporate Notes & Bonds
(Cost of $1,334,080,910)............. 1,387,073,136
-------------
See Accompanying Notes to Financial Statements
127
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA HIGH YIELD FUND (CONT.)
JUNE 30, 2003 (UNAUDITED)
PAR VALUE
------------ -------------
SHORT-TERM OBLIGATION (8.1%)
Repurchase agreement with State
Street Bank & Trust Co., dated
06/30/03, due 07/01/03 at 0.950%,
collateralized by U.S. Treasury
Bonds with maturities to
11/15/08, market value of
$126,308,645 (repurchase
proceeds $123,831,268)
(Cost of $123,828,000)...............$123,828,000 $ 123,828,000
-------------
TOTAL INVESTMENTS (98.5%)
(Cost of $1,457,908,910) (b)......... 1,510,901,136
-------------
OTHER ASSETS & LIABILITIES, NET (1.5%)..... 23,296,438
-------------
NET ASSETS (100.0%)........................ $1,534,197,574
==============
NOTES TO SCHEDULE OF INVESTMENTS:
(a) This security is exempt from registration under Rule 144A of the Securities
Act of 1933 and may be resold in transactions exempt from registration,
normally to qualified institutional buyers. At June 30, 2003, the value of
these securities amounted to $296,408,589, which represents 19.3% of net
assets.
(b) Cost for federal income tax purposes is $1,460,765,557.
COLUMBIA DAILY INCOME COMPANY
JUNE 30, 2003 (UNAUDITED)
PAR VALUE
----------- -------------
U.S. GOVERNMENT AGENCIES (24.9%)
Federal National Mortgage Association (FNMA):
1.090% 08/27/03 (a).................. $13,000,000 $ 12,977,564
1.145% 08/13/03 (a).................. 15,000,000 14,979,485
1.160% 07/09/03 (a).................. 16,200,000 16,195,824
1.175% 07/13/03 (a).................. 9,600,000 9,590,600
4.750% 11/14/03...................... 5,958,000 6,035,450
Federal Home Loan Bank (FHLB):
1.150% 07/25/03 (a).................. 10,000,000 9,992,333
1.150% 09/24/03 (a).................. 11,500,000 11,468,774
1.160% 07/18/03 (a).................. 20,000,000 19,989,045
2.500% 11/14/03...................... 4,800,000 4,822,198
3.125% 11/14/03...................... 6,010,000 6,051,604
6.875% 08/15/03...................... 20,000,000 20,139,057
Federal Home Loan Mortgage Corp. (FHLMC):
1.190% 07/17/03 (a).................. 11,900,000 11,893,706
1.400% 08/21/03 (a).................. 10,000,000 9,983,850
6.375% 11/15/03...................... 3,529,000 3,598,089
PAR VALUE
----------- -------------
Student Loan Marketing
Association (SLMA):
0.890% 08/21/03...................... $40,000,000 $ 40,000,000
0.900% 11/20/03...................... 26,500,000 26,499,813
-------------
Total U.S. Government Agencies
(Cost of $224,217,392)............... 224,217,392
-------------
COMMERCIAL PAPER (75.5%)
Abbey National North America LLC:
1.010% 09/05/03...................... 6,000,000 5,988,890
1.190% 08/19/03...................... 12,300,000 12,280,077
Alabama Power Co.,
1.240% 07/10/03...................... 12,000,000 11,996,280
American Express Credit,
1.010% 09/30/03...................... 18,000,000 17,954,045
American General Finance Corp.:
1.010% 09/25/03...................... 13,500,000 13,467,428
1.200% 07/17/03...................... 9,000,000 8,995,200
American Honda Finance:
1.160% 07/07/03...................... 7,000,000 6,998,647
1.220% 07/11/03...................... 6,700,000 6,697,730
Archer Daniels Midland Co.:
1.220% 07/02/03...................... 3,000,000 2,999,898
1.230% 07/02/03...................... 22,000,000 21,999,248
Banc One Corp.,
1.200% 08/04/03...................... 20,000,000 19,977,333
Barclays U.S. Funding Corp.:
0.970% 08/27/03...................... 6,500,000 6,490,017
1.000% 08/27/03...................... 3,400,000 3,394,617
1.210% 08/01/03...................... 3,000,000 2,996,874
BellSouth Corp.:
0.950% 07/23/03...................... 8,455,000 8,450,091
1.020% 07/03/03...................... 5,600,000 5,599,683
Brown-Forman Corp.,
0.960% 07/11/03...................... 13,200,000 13,196,480
Caterpillar Financial Services Corp.:
0.930% 07/28/03...................... 3,600,000 3,597,489
0.980% 07/28/03...................... 10,000,000 9,992,650
Chevron UK Investment PLC:
0.910% 09/18/03 (a).................. 6,500,000 6,487,020
1.190% 07/10/03 (a).................. 9,000,000 8,997,323
1.210% 07/21/03...................... 9,500,000 9,493,614
Citicorp:
1.190% 08/07/03...................... 11,000,000 10,986,546
1.220% 07/11/03...................... 14,000,000 13,995,256
Clorox Corp.,
0.980% 09/11/03...................... 13,000,000 12,974,520
Coca-Cola Co.:
0.880% 09/09/03...................... 10,000,000 9,982,889
0.900% 08/15/03...................... 13,000,000 12,985,375
See Accompanying Notes to Financial Statements
128
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
PAR VALUE
----------- -------------
E.I. Du Pont de Nemours & Co.:
0.920% 08/08/03...................... $ 4,500,000 $ 4,495,630
1.010% 08/20/03...................... 5,000,000 4,992,986
1.190% 07/22/03...................... 8,700,000 8,693,961
General Electric Capital Corp.:
0.900% 07/15/03...................... 9,700,000 9,696,605
1.220% 09/10/03...................... 14,000,000 13,966,315
GlaxoSmithKline PLC,
1.190% 08/19/03...................... 24,500,000 24,460,317
Goldman Sachs Group, Inc.:
0.970% 08/20/03 (a).................. 5,500,000 5,492,590
1.260% 07/07/03...................... 13,000,000 12,997,270
Grainger (W.W.), Inc.,
0.910% 07/25/03...................... 18,000,000 17,989,080
Household Finance Corp.,
1.200% 09/02/03...................... 9,000,000 8,981,100
International Business Machines Corp.,
1.200% 07/08/03...................... 20,000,000 19,995,333
J.P. Morgan Chase & Co.:
1.190% 07/24/03...................... 10,000,000 9,992,397
1.200% 08/12/03...................... 10,000,000 9,986,000
Johnson & Johnson, Inc.,
1.200% 08/04/03...................... 10,000,000 9,988,667
Lubrizol Corp.,
1.180% 09/15/03...................... 5,300,000 5,286,797
McGraw-Hill, Inc.:
1.150% 09/17/03...................... 14,000,000 13,965,117
1.180% 08/12/03...................... 5,500,000 5,492,428
Merck & Co., Inc.:
1.100% 07/11/03...................... 4,500,000 4,498,625
1.200% 08/06/03...................... 5,800,000 5,793,040
1.210% 08/14/03...................... 12,800,000 12,781,070
Nestle Capital Corp.:
1.190% 07/31/03 (a).................. 6,000,000 5,994,050
1.190% 08/07/03 (a).................. 13,300,000 13,283,733
PACCAR Financial Corp.,
1.210% 07/24/03...................... 15,200,000 15,188,250
Prudential Funding Corp.,
1.200% 08/11/03...................... 15,000,000 14,979,500
Pzifer, Inc.:
0.910% 08/11/03...................... 4,500,000 4,495,336
1.000% 07/30/03...................... 11,100,000 11,091,058
1.110% 07/22/03...................... 6,300,000 6,295,921
Royal Bank of Scotland PLC,
1.030% 08/13/03...................... 19,000,000 18,976,625
San Paolo U.S. Finance Co.,
1.070% 09/12/03...................... 18,000,000 17,960,945
Schering-Plough Corp.,
1.210% 08/08/03...................... 18,600,000 18,576,244
PAR VALUE
----------- -------------
Shell Finance:
1.200% 07/14/03......................$ 15,000,000 $ 14,993,500
1.200% 08/28/03...................... 6,500,000 6,487,433
Societe Generale of North
America, Inc.:
1.210% 07/01/03...................... 2,600,000 2,600,000
1.240% 07/01/03...................... 17,400,000 17,400,000
UBS Finance, Inc.,
1.310% 07/01/03...................... 13,600,000 13,600,000
Verizon Network Funding Corp.,
1.190% 07/29/03...................... 14,000,000 13,987,042
Washington Post Co.,
1.200% 07/29/03...................... 4,000,000 3,996,267
-------------
Total Commercial Paper
(Cost of $678,426,452)............... 678,426,452
-------------
TOTAL INVESTMENTS (100.4%)
(Cost of $902,643,844) (b)........... 902,643,844
-------------
OTHER ASSETS & LIABILITIES, NET (-0.4%).... (3,933,087)
-------------
NET ASSETS (100.0%)........................ $ 898,710,757
=============
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Floating rate note whose interest rate is reset periodically based on an
index. The interest rate shown reflects the rate in effect at June 30, 2003.
(b) Cost for both financial statement and federal income tax purposes is the
same.
See Accompanying Notes to Financial Statements
129
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
COLUMBIA FUNDS
JUNE 30, 2003 (UNAUDITED)
COMMON INTERNATIONAL
STOCK GROWTH STOCK SPECIAL SMALL CAP
FUND FUND FUND FUND FUND
------------ -------------- ------------ -------------- ------------
ASSETS:
Investments, at identified cost
(including short-term obligations) .................. $370,449,689 $ 733,871,523 $224,122,602 $ 810,088,125 $454,861,002
============ ============== ============ ============== ============
Investments, at value................................. $412,798,832 $ 871,964,232 $226,577,641 $ 924,870,157 $540,385,537
Repurchase agreement.................................. 17,175,000 13,171,000 15,216,000 32,690,000 18,420,000
------------ -------------- ------------ -------------- ------------
Total investments, at value......................... $429,973,832 $ 885,135,232 $241,793,641 $ 957,560,157 $558,805,537
Cash.................................................. 276 107 532 574 484
Foreign currency (cost of $520,184)................... -- -- 518,637 -- --
Receivable for:
Investments sold.................................... 7,000,123 20,359,130 189,539 16,612,357 5,730,038
Capital stock sold.................................. 388,652 603,126 749,190 536,307 1,924,924
Interest............................................ 586 348 402 862 486
Dividends........................................... 484,858 490,315 701,124 104,568 30,129
Expense reimbursement due from Advisor................ -- 12,384 -- -- --
Prepaid expense....................................... 45,998 -- 16,011 65,216 4,229
Deferred Trustees' compensation plan.................. -- -- 5,892 -- --
Other assets.......................................... -- -- 99,608 -- --
------------ -------------- ------------ -------------- ------------
Total assets.......................................... 437,894,325 906,600,642 244,074,576 974,880,041 566,495,827
------------ -------------- ------------ -------------- ------------
LIABILITIES:
Expense reimbursement due to Advisor.................. -- -- -- -- --
Payable for:
Investments purchased on a delayed delivery basis... -- -- -- -- --
Investments purchased............................... 10,064,034 17,875,111 6,312,047 9,816,963 4,201,363
Capital stock redeemed.............................. 971,117 860,546 139,115 2,110,673 2,942,672
Distributions....................................... -- -- -- -- --
Investment management fee........................... 213,930 438,402 182,196 685,920 462,663
Transfer agent fee.................................. 125,899 2,786 -- 81,806 69,793
Pricing and bookkeeping fees........................ 3,970 7,269 3,978 -- 2,391
Expenses received at merger......................... -- 78,683 -- 67,807 --
Directors' fees..................................... 1,063 6,717 -- 1,379 --
Distribution and services fees...................... 122 -- -- -- --
Custody fee......................................... 8,634 8,262 6,203 2,072 45,121
Reports to shareholders............................. 83,235 187,045 43,594 79,195 38,607
Deferred Trustees' fees............................... -- -- 5,892 -- --
Foreign capital gains tax payable..................... -- -- 239,004 -- --
Other liabilities..................................... 11,448 6,047 -- 31,997 37,261
------------ -------------- ------------ -------------- ------------
Total liabilities..................................... 11,483,452 19,470,868 6,932,029 12,877,812 7,799,871
------------ -------------- ------------ -------------- ------------
NET ASSETS.............................................. $426,410,873 $ 887,129,774 $237,142,547 $ 962,002,229 $558,695,956
============ ============== ============ ============== ============
NET ASSETS consist of:
Paid-in capital....................................... $520,095,433 $1,216,005,239 $283,686,860 $1,104,270,614 $679,471,280
Undistributed (overdistributed)
net investment income (loss) 1,259,809 342,923 1,468,323 (3,402,397) (2,465,982)
Accumulated net realized gain (loss).................. (154,468,512) (480,482,097) (65,755,309) (286,338,020) (222,253,877)
Unrealized appreciation (depreciation) on:
Investments......................................... 59,524,143 151,263,709 17,671,039 147,472,032 103,944,535
Foreign currency translations....................... -- -- 71,634 -- --
------------ -------------- ------------ -------------- ------------
NET ASSETS.............................................. $426,410,873 $ 887,129,774 $237,142,547 $ 962,002,229 $558,695,956
============ ============== ============ ============== ============
REAL ESTATE STRATEGIC SHORT TERM
EQUITY TECHNOLOGY VALUE BALANCED BOND
FUND FUND FUND FUND FUND
------------ ----------- ------------ ----------- -----------
ASSETS:
Investments, at identified cost
(including short-term obligations) .................. $693,642,786 $13,213,788 $237,288,084 $600,341,598 $615,232,343
============ =========== ============ ============ ============
Investments, at value................................. $775,871,977 $14,705,465 $221,910,526 $627,566,134 $516,269,591
Repurchase agreement.................................. 51,256,000 169,000 43,579,000 41,053,000 105,984,000
------------ ----------- ------------ ------------ ------------
Total investments, at value......................... $827,127,977 $14,874,465 $265,489,526 $668,619,134 $622,253,591
Cash.................................................. 625,573 13,057 254 143,532 11,287,557
Foreign currency (cost of $520,184)................... -- -- -- -- --
Receivable for:
Investments sold.................................... 2,624,448 2,114,503 1,359,539 8,806,876 7,576,574
Capital stock sold.................................. 3,102,917 129,086 172,056 600,942 5,049,549
Interest............................................ 1,353 4 1,150 2,372,406 3,406,744
Dividends........................................... 2,563,814 1,595 270,761 471,552 --
Expense reimbursement due from Advisor................ -- 63,987 18,418 -- --
Prepaid expense....................................... 22,289 47,766 1,504 46,568 83,352
Deferred Trustees' compensation plan.................. -- -- 8,492 -- --
Other assets.......................................... 671 8,294 -- 26,440 76,265
------------ ----------- ------------ ------------ ------------
Total assets.......................................... 836,069,042 17,252,757 267,321,700 681,087,450 649,733,632
------------ ----------- ------------ ------------ ------------
LIABILITIES:
Expense reimbursement due to Advisor.................. -- -- -- -- 4,052
Payable for:
Investments purchased on a delayed delivery basis... -- -- -- 20,899,617 69,769,395
Investments purchased............................... 625,000 2,332,481 1,160,864 11,655,768 21,106,626
Capital stock redeemed.............................. 1,791,551 189,805 734,071 841,258 1,145,652
Distributions....................................... 16,220 -- -- 43,639 486,921
Investment management fee........................... 509,011 11,675 167,422 272,105 209,502
Transfer agent fee.................................. 107,302 -- 8,599 -- --
Pricing and bookkeeping fees........................ -- 1,449 325 7,970 11,630
Expenses received at merger......................... -- -- 13,612 -- 45,444
Directors' fees..................................... -- -- -- 1,988 14,736
Distribution and services fees...................... 1,982 300 1,219 743 10,068
Custody fee......................................... 3,567 2,541 5,818 7,623 --
Reports to shareholders............................. 37,131 9,737 7,063 79,867 8,523
Deferred Trustees' fees............................... -- -- 8,492 -- --
Foreign capital gains tax payable..................... -- -- -- -- --
Other liabilities..................................... 22,776 -- 13,017 -- --
------------ ----------- ------------ ------------ ------------
Total liabilities..................................... 3,114,540 2,547,988 2,120,502 33,810,578 92,812,549
------------ ----------- ------------ ------------ ------------
NET ASSETS.............................................. $832,954,502 $14,704,769 $265,201,198 $647,276,872 $556,921,083
============ =========== ============ ============ ============
NET ASSETS consist of:
Paid-in capital....................................... $712,592,675 $20,414,639 $271,038,797 $735,768,434 $549,676,769
Undistributed (overdistributed)
net investment income (loss) 7,504,375 (66,359) 1,255,019 (340,280) (397,994)
Accumulated net realized gain (loss).................. (20,627,739) (7,304,188) (35,294,059) (156,428,818) 621,060
Unrealized appreciation (depreciation) on:
Investments......................................... 133,485,191 1,660,677 28,201,442 68,277,536 7,021,248
Foreign currency translations....................... -- -- (1) -- --
------------ ----------- ------------ ------------ ------------
NET ASSETS.............................................. $832,954,502 $14,704,769 $265,201,198 $647,276,872 $556,921,083
============ =========== ============ ============ ============
NATIONAL OREGON
FIXED INCOME MUNICIPAL MUNICIPAL DAILY
SECURITIES BOND BOND HIGH YIELD INCOME
FUND FUND FUND FUND COMPANY
------------ ----------- ------------ -------------- ------------
ASSETS:
Investments, at identified cost
(including short-term obligations) .................. $612,878,297 $15,812,059 $489,221,234 $1,457,908,910 $902,643,844
============ =========== ============ ============== ============
Investments, at value................................. $552,749,288 $16,877,979 $520,080,025 $1,387,073,136 $902,643,844
Repurchase agreement.................................. 85,324,000 -- -- 123,828,000 --
------------ ----------- ------------ -------------- ------------
Total investments, at value......................... $638,073,288 $16,877,979 $520,080,025 $1,510,901,136 $902,643,844
Cash.................................................. 5,883,596 -- -- 6,576,090 76,204
Foreign currency (cost of $520,184)................... -- -- -- -- --
Receivable for:
Investments sold.................................... 2,832,020 -- -- 10,046,288 --
Capital stock sold.................................. 1,053,807 271 3,653,513 11,229,957 1,859,516
Interest............................................ 5,557,403 224,706 6,412,565 24,863,827 827,490
Dividends........................................... -- -- -- -- --
Expense reimbursement due from Advisor................ -- 44,810 -- -- --
Prepaid expense....................................... 52,235 66,323 60,846 98,816 12,942
Deferred Trustees' compensation plan.................. -- -- -- -- --
Other assets.......................................... -- 99 -- 5,844 27,170
------------ ----------- ------------ -------------- ------------
Total assets.......................................... 653,452,349 17,214,188 530,206,949 1,563,721,958 905,447,166
------------ ----------- ------------ -------------- ------------
LIABILITIES:
Expense reimbursement due to Advisor.................. -- -- -- -- --
Payable for:
Investments purchased on a delayed delivery basis... 70,356,043 -- -- -- --
Investments purchased............................... 8,438,468 -- -- 24,093,222 --
Capital stock redeemed.............................. 2,373,355 14,867 144,708 2,270,963 6,044,804
Distributions....................................... 81,804 7,276 411,981 2,376,163 2,789
Investment management fee........................... 236,747 7,165 217,968 719,495 366,593
Transfer agent fee.................................. -- 3,071 27,237 -- 158,190
Pricing and bookkeeping fees........................ 4,491 642 1,026 -- --
Expenses received at merger......................... -- -- -- -- --
Directors' fees..................................... 9,410 3,950 -- -- 2,990
Distribution and services fees...................... 1,890 206 384 49,734 --
Custody fee......................................... 4,038 -- 299 32 42,025
Reports to shareholders............................. 18,513 -- 9,844 14,775 93,455
Deferred Trustees' fees............................... -- -- -- -- --
Foreign capital gains tax payable..................... -- -- -- -- --
Other liabilities..................................... 45,985 8,213 14,799 -- 25,563
------------ ----------- ------------ -------------- ------------
Total liabilities..................................... 81,570,744 45,390 828,246 29,524,384 6,736,409
------------ ----------- ------------ -------------- ------------
NET ASSETS.............................................. $571,881,605 $17,168,798 $529,378,703 $1,534,197,574 $898,710,757
============ =========== ============ ============== ============
NET ASSETS consist of:
Paid-in capital....................................... $550,787,823 $16,020,501 $495,707,341 $1,521,192,161 $898,840,027
Undistributed (overdistributed)
net investment income (loss) (1,429,580) 5,538 149,364 (3,322,607) (129,270)
Accumulated net realized gain (loss).................. (2,671,629) 76,839 2,663,207 (36,664,206) --
Unrealized appreciation (depreciation) on:
Investments......................................... 25,194,991 1,065,920 30,858,791 52,992,226 --
Foreign currency translations....................... -- -- -- -- --
------------ ----------- ------------ -------------- ------------
NET ASSETS.............................................. $571,881,605 $17,168,798 $529,378,703 $1,534,197,574 $898,710,757
============ =========== ============ ============== ============
See Accompanying Notes to Financial Statements
130-131 Spread
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
COLUMBIA FUNDS
JUNE 30, 2003 (UNAUDITED)
COMMON INTERNATIONAL
STOCK GROWTH STOCK SPECIAL SMALL CAP
FUND FUND FUND FUND FUND
------------ ------------ ------------- ------------ ------------
NET ASSETS:
Class A Shares....................................... $ 197,137 $ 4,063,317 $ 20,615,862 $ 3,279,022 --
============ ============ ============= ============ ============
Class B Shares....................................... $ 421,356 $641,146 $ 10,062,886 $ 3,960,369 --
============ ============ ============= ============ ============
Class D Shares....................................... $ 106,958 $202,747 $ 564,384 $ 676,749 --
============ ============ ============= ============ ============
Class G Shares....................................... -- $ 14,320,175 -- $ 760,317 --
============ ============ ============= ============ ============
Class T Shares....................................... -- -- -- $ 28,360,450 --
============ ============ ============= ============ ============
Class Z Shares....................................... $425,685,422 $867,902,389 $ 205,899,415 $924,965,322 $558,695,956
============ ============ ============= ============ ============
SHARES OUTSTANDING:
Class A Shares....................................... 12,038 173,146 1,911,788 194,842 --
============ ============ ============= ============ ============
Class B Shares....................................... 25,835 27,428 940,882 236,355 --
============ ============ ============= ============ ============
Class D Shares....................................... 6,559 8,675 52,619 40,406 --
============ ============ ============= ============ ============
Class G Shares....................................... -- 612,496 -- 45,380 --
============ ============ ============= ============ ============
Class T Shares ...................................... -- -- -- 1,681,753 --
============ ============ ============= ============ ============
Class Z Shares....................................... 25,943,041 36,871,077 19,013,113 54,755,084 28,302,525
============ ============ ============= ============ ============
CLASS A SHARES:
Net asset value per share (a)........................ $ 16.38 $ 23.47 $10.78 $ 16.83 --
============ ============ ============= ============ ============
Maximum sales charge................................. 5.75% 5.75% 5.75% 5.75% --
============ ============ ============= ============ ============
Maximum offering price per share (b) ................ $ 17.38 $ 24.90 $11.44 $ 17.86 --
============ ============ ============= ============ ============
CLASS B SHARES:
Net asset value and offering price per share (a)..... $ 16.31 $ 23.38 $10.70 $ 16.76 --
============ ============ ============= ============ ============
CLASS D SHARES:
Net asset value per share (a)........................ $ 16.31 $ 23.37 $10.73 $ 16.75 --
============ ============ ============= ============ ============
Maximum sales charge................................. 1.00% 1.00% 1.00% 1.00% --
============ ============ ============= ============ ============
Maximum offering price per share (b)................. $ 16.47 $ 23.61 $ 10.84 $ 16.92 --
============ ============ ============= ============ ============
CLASS G SHARES:
Net asset value and offering price per share (a)..... -- $ 23.38 -- $ 16.75 --
============ ============ ============= ============ ============
CLASS T SHARES:
Net asset value per share (a)........................ -- -- -- $ 16.86 --
============ ============ ============= ============ ============
Maximum sales charge................................. -- -- -- 5.75% --
============ ============ ============= ============ ============
Maximum offering price per share (b)................. -- -- -- $ 17.89 --
============ ============ ============= ============ ============
CLASS Z SHARES:
Net asset value, offering and redemption price per
share.............................................. $ 16.41 $ 23.54 $ 10.83 $ 16.89 $ 19.74
============ ============ ============= ============ ============
REAL ESTATE STRATEGIC SHORT TERM
EQUITY TECHNOLOGY VALUE BALANCED BOND
FUND FUND FUND FUND FUND
------------ ------------ ------------ ------------ ------------
NET ASSETS:
Class A Shares....................................... $ 7,901,691 $ 256,144 $ 56,754,495 $ 419,621 $ 37,617,346
============ ============ ============ ============ ============
Class B Shares....................................... $ 3,810,235 $ 995,599 $ 2,875,645 $ 2,608,006 $ 26,523,885
============ ============ ============ ============ ============
Class D Shares....................................... $ 2,632,519 $ 10,283 $ 695,933 $ 673,853 $ 17,379,364
============ ============ ============ ============ ============
Class G Shares....................................... -- -- -- -- $ 1,751,127
============ ============ ============ ============ ============
Class T Shares....................................... -- -- -- -- $ 29,250,229
============ ============ ============ ============ ============
Class Z Shares....................................... $818,610,057 $13,442,743 $204,875,125 $643,575,392 $444,399,132
============ ============ ============ ============ ============
SHARES OUTSTANDING:
Class A Shares....................................... 401,980 51,335 3,804,866 22,419 4,295,059
============ ============ ============ ============ ============
Class B Shares....................................... 193,591 200,994 194,031 139,326 3,029,517
============ ============ ============ ============ ============
Class D Shares....................................... 133,765 2,063 46,983 36,003 1,984,610
============ ============ ============ ============ ============
Class G Shares....................................... -- -- -- -- 199,920
============ ============ ============ ============ ============
Class T Shares....................................... -- -- -- -- 3,339,746
============ ============ ============ ============ ============
Class Z Shares....................................... 41,623,117 2,683,050 13,709,344 34,393,290 50,740,797
============ ============ ============ ============ ============
CLASS A SHARES:
Net asset value per share (a)........................ $ 19.66 $ 4.99 $ 14.92 $ 18.72 $ 8.76
============ ============ ============ ============ ============
Maximum sales charge................................. 5.75% 5.75% 5.75% 5.75% 4.75%
============ ============ ============ ============ ============
Maximum offering price per share (b)................. $ 20.86 $ 5.29 $ 15.83 $ 19.86 $ 9.20
============ ============ ============ ============ ============
CLASS B SHARES:
Net asset value and offering price per share (a)..... $ 19.68 $ 4.95 $ 14.82 $ 18.72 $ 8.76
============ ============ ============ ============ ============
CLASS D SHARES:
Net asset value per share (a)........................ $ 19.68 $ 4.98 $ 14.81 $ 18.72 $ 8.76
============ ============ ============ ============ ============
Maximum sales charge................................. 1.00% 1.00% 1.00% 1.00% 1.00%
============ ============ ============ ============ ============
Maximum offering price per share (b)................. $ 19.88 $ 5.03 $ 14.96 $ 18.91 $ 8.85
============ ============ ============ ============ ============
CLASS G SHARES:
Net asset value and offering price per share (a)..... -- -- -- -- $ 8.76
============ ============ ============ ============ ============
CLASS T SHARES:
Net asset value per share (a)........................ -- -- -- -- $ 8.76
============ ============ ============ ============ ============
Maximum sales charge................................. -- -- -- -- 4.75%
============ ============ ============ ============ ============
Maximum offering price per share (b)................. -- -- -- -- $ 9.20
============ ============ ============ ============ ============
CLASS Z SHARES:
Net asset value, offering and redemption price per
share............................................... $ 19.67 $ 5.01 $ 14.94 $ 18.71 $ 8.76
============ ============ ============ ============ ============
NATIONAL
FIXED INCOME MUNICIPAL OREGON HIGH DAILY
SECURITIES BOND BOND YIELD INCOME
FUND FUND FUND FUND COMPANY
------------ ------------ ------------ -------------- ------------
NET ASSETS:
Class A Shares....................................... $ 6,189,424 $ 380,106 $ 1,456,949 $ 159,929,631 --
============ ============ ============ ============== ============
Class B Shares....................................... $ 4,339,434 $ 592,365 $ 897,699 $ 83,756,849 --
============ ============ ============ ============== ============
Class D Shares....................................... $ 2,855,095 $ 402,944 $ 807,001 $ 99,403,279 --
============ ============ ============ ============== ============
Class G Shares....................................... -- -- -- -- --
============ ============ ============ ============== ============
Class T Shares....................................... -- -- -- -- --
============ ============ ============ ============== ============
Class Z Shares....................................... $558,497,652 $ 15,793,383 $526,217,054 $1,191,107,815 $898,710,757
============ ============ ============ ============== ============
SHARES OUTSTANDING:
Class A Shares....................................... 449,684 36,219 114,650 18,399,688 --
============ ============ ============ ============== ============
Class B Shares....................................... 315,270 56,444 70,640 9,636,114 --
============ ============ ============ ============== ============
Class D Shares....................................... 207,433 38,395 63,500 11,435,956 --
============ ============ ============ ============== ============
Class G Shares....................................... -- -- -- -- --
============ ============ ============ ============== ============
Class T Shares....................................... -- -- -- -- --
============ ============ ============ ============== ============
Class Z Shares....................................... 40,585,356 1,504,957 41,410,081 137,06 1,348 898,840,027
============ ============ ============ ============== ============
CLASS A SHARES:
Net asset value per share (a)........................ $ 13.76 $ 10.49 $ 12.71 $ 8.69 --
============ ============ ============ ============== ============
Maximum sales charge................................. 4.75% 4.75% 4.75% 4.75% --
============ ============ ============ ============== ============
Maximum offering price per share (b)................. $ 14.45 $ 11.01 $ 13.34 $ 9.12 --
============ ============ ============ ============== ============
CLASS B SHARES:
Net asset value and offering price per share (a)..... $ 13.76 $ 10.49 $ 12.71 $ 8.69 --
============ ============ ============ ============== ============
CLASS D SHARES:
Net asset value per share (a)........................ $ 13.76 $ 10.49 $ 12.71 $ 8.69 --
============ ============ ============ ============== ============
Maximum sales charge................................. 1.00% 1.00% 1.00% 1.00% --
============ ============ ============ ============== ============
Maximum offering price per share (b)................. $ 13.90 $ 10.60 $ 12.84 $ 8.78 --
============ ============ ============ ============== ============
CLASS G SHARES:
Net asset value and offering price per share (a)..... -- -- -- -- --
============ ============ ============ ============== ============
CLASS T SHARES:
Net asset value per share (a)........................ -- -- -- -- --
============ ============ ============ ============== ============
Maximum sales charge................................. -- -- -- -- --
============ ============ ============ ============== ============
Maximum offering price per share (b)................. -- -- -- -- --
============ ============ ============ ============== ============
CLASS Z SHARES:
Net asset value, offering and redemption price per
share............................................... $ 13.76 $ 10.49 $ 12.71 $ 8.69 $ 1.00
============ ============ ============ ============== ============
(a) Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
(b) On sales of $50,000 or more the offering price is reduced.
See Accompanying Notes to Financial Statements
132-133 Spread
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
COLUMBIA FUNDS
FOR THE SIX MONTHS ENDED JUNE 30, 2003 (UNAUDITED)
INTER-
COMMON NATIONAL
STOCK GROWTH STOCK SPECIAL SMALL CAP
FUND FUND FUND FUND FUND
------------ ------------ ------------ ----------- -----------
NET INVESTMENT INCOME:
Income:
Dividends......................................... $ 3,063,007 $ 3,870,379 $ 3,139,415 $ 303,361 $ 364,332
Interest.......................................... 59,477 53,256 57,395 983,115 99,873
Other............................................. 299 508 680 -- 1,265
Foreign withholding tax........................... (15,899) (18,524) (323,995) -- (3,998)
------------ ----------- ----------- ----------- -----------
Total income..................................... 3,106,884 3,905,619 2,873,495 1,286,476 461,472
------------ ----------- ----------- ----------- -----------
Expenses:
Investment management fee......................... 1,206,176 2,495,013 966,714 3,848,504 2,461,698
Distribution fee:
Class A.......................................... 62 1,700 -- 930 --
Class B.......................................... 1,130 1,069 37,373 13,271 --
Class D.......................................... 166 559 1,997 1,977 --
Class G.......................................... -- 44,035 -- 2,330 --
Service fee:
Class A.......................................... 154 4,404 24,205 2,310 --
Class B.......................................... 375 355 12,458 4,424 --
Class D.......................................... 55 186 666 659 --
Class G.......................................... -- 33,707 -- 1,792 --
Class T.......................................... -- -- -- 64,942 --
Transfer agent fee:
Class A.......................................... 267 7,217 40,439 3,536 --
Class B.......................................... 966 383 44,205 8,852 --
Class D.......................................... 183 276 2,725 1,005 --
Class G.......................................... -- 24,992 -- 1,970 --
Class T.......................................... -- -- -- 24,350 --
Class Z.......................................... 459,586 659,223 207,225 689,342 484,341
Pricing and bookkeeping fees...................... 20,831 35,905 14,032 34,610 23,186
Directors' fees................................... 7,412 4,787 7,421 9,039 8,032
Custody fee....................................... 13,785 18,799 50,607 15,203 31,546
Audit fee......................................... 13,789 14,470 20,553 16,482 14,673
Registration fee.................................. 61,806 73,997 30,896 85,254 35,011
Other expenses.................................... 60,395 157,408 35,052 92,313 50,810
------------ ----------- ----------- ----------- -----------
Total Expenses................................... 1,847,138 3,578,485 1,496,568 4,923,095 3,109,297
Expenses reimbursed by Advisor.................... -- -- -- -- --
Fees waived by Distributor:
Class A.......................................... (62) (1,700) -- (930) --
Class D.......................................... -- -- -- -- --
Class G.......................................... -- (13,500) -- (717) --
Class T.......................................... -- -- -- (25,977) --
Fees waived by Advisor:
Class A.......................................... -- -- -- (80) --
Class B.......................................... -- -- (5,481) (2,105) --
Class D.......................................... -- -- (1,997) (234) --
Class Z.......................................... -- -- (98,088) (207,091) --
Custody earnings credit........................... (1) (589) (235) (498) (846)
------------ ----------- ----------- ----------- -----------
Net Expenses...................................... 1,847,075 3,562,696 1,390,767 4,685,463 3,108,451
------------ ----------- ----------- ----------- -----------
Net Investment Income (Loss)........................ 1,259,809 342,923 1,482,728 (3,398,987) (2,646,979)
------------ ----------- ----------- ----------- -----------
REAL ESTATE STRATEGIC SHORT TERM
EQUITY TECHNOLOGY VALUE BALANCED BOND
FUND FUND FUND FUND FUND
------------ ---------- ----------- ----------- ------------
NET INVESTMENT INCOME:
Income:
Dividends......................................... $ 17,582,327 $ 15,860 $ 2,473,663 $ 2,945,857 $ --
Interest.......................................... 236,831 2,752 134,052 6,227,169 7,320,961
Other............................................. -- -- 420 81,142 --
Foreign withholding tax........................... -- (103) (98,645) (15,372) --
------------ ---------- ----------- ----------- ------------
Total income..................................... 17,819,158 18,509 2,509,490 9,238,796 7,320,961
------------ ---------- ----------- ----------- ------------
Expenses:
Investment management fee......................... 2,929,913 50,596 928,142 1,584,122 1,147,978
Distribution fee:
Class A.......................................... 1,832 52 -- 161 10,159
Class B.......................................... 9,257 643 9,440 6,006 67,478
Class D.......................................... 5,546 29 1,575 1,970 42,477
Class G.......................................... -- -- -- -- 6,104
Service fee:
Class A.......................................... 4,532 130 65,522 401 25,177
Class B.......................................... 3,059 214 3,146 1,997 22,340
Class D.......................................... 1,822 10 525 657 14,058
Class G.......................................... -- -- -- -- 4,696
Class T.......................................... -- -- -- -- 74,237
Transfer agent fee:
Class A.......................................... 10,533 622 32,555 900 21,701
Class B.......................................... 7,888 1,716 6,617 4,490 18,338
Class D.......................................... 4,282 60 1,128 731 13,238
Class G.......................................... -- -- -- -- 1,819
Class T.......................................... -- -- -- -- 18,376
Class Z.......................................... 943,099 45,963 176,390 431,792 64,903
Pricing and bookkeeping fees...................... 31,172 12,245 16,737 31,791 30,261
Directors' fees................................... 9,929 2,018 4,351 10,326 2,912
Custody fee....................................... 11,134 6,090 21,564 23,724 8,698
Audit fee......................................... 12,106 12,227 13,887 15,702 12,509
Registration fee.................................. 81,382 54,642 33,825 60,137 86,284
Other expenses.................................... 98,652 8,942 36,145 82,213 61,520
------------ ---------- ----------- ----------- ------------
Total Expenses................................... 4,166,138 196,199 1,351,549 2,257,120 1,755,263
Expenses reimbursed by Advisor.................... -- (111,256) -- -- (22,273)
Fees waived by Distributor:
Class A.......................................... (1,832) (52) -- (161) (10,159)
Class D.......................................... -- -- -- -- (33,740)
Class G.......................................... -- -- -- -- (3,287)
Class T.......................................... -- -- -- -- (51,966)
Fees waived by Advisor:
Class A.......................................... -- -- -- -- --
Class B.......................................... -- -- (2,890) -- --
Class D.......................................... -- -- (314) -- --
Class Z.......................................... -- -- (28,822) -- --
Custody earnings credit........................... (34) (23) (2,714) (1,559) (2,905)
------------ ---------- ----------- ----------- ------------
Net Expenses...................................... 4,164,272 84,868 1,316,809 2,255,400 1,630,933
------------ ---------- ----------- ----------- ------------
Net Investment Income (Loss)........................ 13,654,886 (66,359) 1,192,681 6,983,396 5,690,028
------------ ---------- ----------- ----------- ------------
FIXED NATIONAL OREGON
INCOME MUNICIPAL MUNICIPAL DAILY
SECURITIES BOND BOND HIGH YIELD INCOME
FUND FUND FUND FUND COMPANY
----------- ----------- ----------- ----------- -----------
NET INVESTMENT INCOME:
Income:
Dividends......................................... $ -- $ 264 $ -- $ -- $ --
Interest.......................................... 12,823,702 379,149 12,455,976 40,110,613 6,576,928
Other............................................. -- -- -- -- --
Foreign withholding tax........................... -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total income..................................... 12,823,702 379,413 12,455,976 40,110,613 6,576,928
----------- ----------- ----------- ----------- -----------
Expenses:
Investment management fee......................... 1,413,122 42,252 1,290,542 3,416,041 2,408,721
Distribution fee:
Class A.......................................... 1,497 111 393 46,228 --
Class B.......................................... 12,129 1,277 2,522 188,975 --
Class D.......................................... 6,645 851 2,557 222,148 --
Class G.......................................... -- -- -- -- --
Service fee:
Class A.......................................... 3,705 276 976 114,667 --
Class B.......................................... 4,026 423 841 62,571 --
Class D.......................................... 2,203 282 852 73,938 --
Class G.......................................... -- -- -- -- --
Class T.......................................... -- -- -- -- --
Transfer agent fee:
Class A.......................................... 7,828 540 760 61,241 --
Class B.......................................... 7,480 899 689 64,418 --
Class D.......................................... 2,769 451 491 58,143 --
Class G.......................................... -- -- -- -- --
Class T.......................................... -- -- -- -- --
Class Z.......................................... 340,266 6,439 109,531 502,498 622,718
Pricing and bookkeeping fees...................... 28,066 17,617 22,094 35,133 38,705
Directors' fees................................... 7,024 2,526 8,159 6,043 15,572
Custody fee....................................... 12,103 1,724 10,128 12,006 42,698
Audit fee......................................... 15,415 12,947 16,357 14,909 13,695
Registration fee.................................. 82,279 64,860 68,692 139,371 43,145
Other expenses.................................... 60,595 5,541 22,738 55,576 58,248
----------- ----------- ----------- ----------- -----------
Total Expenses................................... 2,007,152 159,016 1,558,322 5,073,906 3,243,502
Expenses reimbursed by Advisor.................... -- (101,174) -- -- --
Fees waived by Distributor:
Class A.......................................... (1,497) (111) (393) (46,228) --
Class D.......................................... (1,322) (395) (1,193) (44,698) --
Class G.......................................... -- -- -- -- --
Class T.......................................... -- -- -- -- --
Fees waived by Advisor:
Class A.......................................... -- -- -- -- --
Class B.......................................... -- -- -- -- --
Class D.......................................... -- -- -- -- --
Class Z.......................................... -- -- -- -- --
Custody earnings credit........................... (1,221) (47) (91) (5,397) (1,293)
----------- ----------- ----------- ----------- -----------
Net Expenses...................................... 2,003,112 57,289 1,556,645 4,977,583 3,242,209
----------- ----------- ----------- ----------- -----------
Net Investment Income (Loss)........................ 10,820,590 322,124 10,899,331 35,133,030 3,334,719
----------- ----------- ----------- ----------- -----------
See Accompanying Notes to Financial Statements
134-135 Spread
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
COLUMBIA FUNDS
For the six Months ended June 30, 2003 (Unaudited)
COMMON INTERNATIONAL
STOCK GROWTH STOCK SPECIAL SMALL CAP
FUND FUND FUND FUND FUND
------------ ------------ ------------- ------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCY:
Net realized gain (loss) on:
Investments ............................... $(16,517,359) $ (8,040,626) $ (6,784,057) $ (1,053,892) $ 16,623,634
Foreign currency transactions ............ -- -- 74,732 -- --
Foreign capital gains tax ................. -- -- (162,341) -- --
------------ ------------ ------------- ------------ ------------
Net realized gain (loss) .............. (16,517,359) (8,040,626) (6,871,666) (1,053,892) 16,623,634
------------ ------------ ------------- ------------ ------------
Change in net unrealized appreciation/
depreciation on:
Investments ............................... 54,682,628 109,188,593 21,815,287 123,819,516 82,105,581
Foreign currency translations ............. -- -- 31,445 -- --
------------ ------------ ------------- ------------ ------------
Net change in net unrealized appreciation/
depreciation 54,682,628 109,188,593 21,846,732 123,819,516 82,105,581
------------ ------------ ------------- ------------ ------------
Net gain........................................... 38,165,269 101,147,967 14,975,066 122,765,624 98,729,215
------------ ------------ ------------- ------------ ------------
NET INCREASE RESULTING FROM OPERATIONS ............ $ 39,425,078 $101,490,890 $ 16,457,794 $119,366,637 $ 96,082,236
============ ============ ============= ============ ============
REAL ESTATE STRATEGIC SHORT TERM
EQUITY TECHNOLOGY VALUE BALANCED BOND
FUND FUND FUND FUND FUND
------------ ----------- ------------ ------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCY:
Net realized gain (loss) on:
Investments ............................... $ 3,650,915 $ 1,881,408 $ (4,005,778) $ (9,450,608) $ 4,014,692
Foreign currency transactions ............ -- -- 2,883 -- --
Foreign capital gains tax ................. -- -- -- -- --
------------ ----------- ------------ ------------ ------------
Net realized gain (loss) .............. 3,650,915 1,881,408 (4,002,895) (9,450,608) 4,014,692
------------ ----------- ------------ ------------ ------------
Change in net unrealized appreciation/
depreciation on:
Investments ............................... 73,271,203 1,267,944 34,283,665 50,578,387 231,520
Foreign currency translations ............. -- -- 150 -- --
------------ ----------- ------------ ------------ ------------
Net change in net unrealized appreciation/
depreciation 73,271,203 1,267,944 34,283,815 50,578,387 231,520
------------ ----------- ------------ ------------ ------------
Net gain........................................... 76,922,118 3,149,352 30,280,920 41,127,779 4,246,212
------------ ----------- ------------ ------------ ------------
NET INCREASE RESULTING FROM OPERATIONS ............ $ 90,577,004 $ 3,082,993 $ 31,473,601 $ 48,111,175 $ 9,936,240
============ =========== ============ ============ ============
INCOME MUNICIPAL MUNICIPAL DAILY
SECURITIES BOND BOND HIGH YIELD INCOME
FUND FUND FUND FUND COMPANY
------------ ----------- ------------- ------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCY:
Net realized gain (loss) on:
Investments ............................... $ 9,277,815 $ 63,153 $ 2,376,789 $ 1,252,109 $ --
Foreign currency transactions ............ -- -- -- -- --
Foreign capital gains tax ................. -- -- -- -- --
------------ ----------- ------------ ------------ ------------
Net realized gain (loss) .............. 9,277,815 63,153 2,376,789 1,252,109 --
------------ ----------- ------------ ------------ ------------
Change in net unrealized appreciation/
depreciation on:
Investments ............................... 1,115,454 310,467 6,347,297 43,832,599 --
Foreign currency translations ............. -- -- -- -- --
------------ ----------- ------------ ------------ ------------
Net change in net unrealized appreciation/
depreciation 1,115,454 310,467 6,347,297 43,832,599 --
------------ ----------- ------------ ------------ ------------
Net gain........................................... 10,393,269 373,620 8,724,086 45,084,708 --
------------ ----------- ------------ ------------ ------------
NET INCREASE RESULTING FROM OPERATIONS ............ $ 21,213,859 $ 695,744 $ 19,623,417 $ 80,217,738 $ 3,334,719
============ =========== ============ ============ ============
See Accompanying Notes to Financial Statements
136-137 Spread
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
COLUMBIA FUNDS
COMMON STOCK FUND GROWTH FUND
---------------------------- ----------------------------
(UNAUDITED) (UNAUDITED)
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
2003 2002 (a) 2003 2002 (b)
----------- ------------- ------------ -------------
OPERATIONS:
Net investment income (loss)....................... $ 1,259,809 $ 2,314,001 $ 342,923 $ (334,512)
Net realized gain (loss) on investments,
foreign currency transactions and foreign
capital gains tax............................... (16,517,359) (76,671,127) (8,040,626) (234,361,212)
Net change in unrealized appreciation/depreciation
on investments and foreign currency translations. 54,682,628 (87,529,297) 109,188,593 (189,831,805)
------------ ------------- ------------ -------------
Net increase (decrease) resulting from operations.. 39,425,078 (161,886,423) 101,490,890 (424,527,529)
------------ ------------- ------------ -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A.......................................... -- (24) -- --
Class B.......................................... -- (365) -- --
Class D.......................................... -- (105) -- --
Class Z.......................................... -- (2,325,116) -- --
Return of capital:
Class Z.......................................... -- -- -- --
------------ ------------- ------------ -------------
Total distributions to shareholders................ -- (2,325,610) -- --
------------ ------------- ------------ -------------
NET CAPITAL SHARE TRANSACTIONS....................... (29,823,581) (100,375,770) (43,008,230) (72,669,754)
------------ ------------- ------------ -------------
Net increase (decrease) in net assets................ 9,601,497 (264,587,803) 58,482,660 (497,197,283)
NET ASSETS:
Beginning of period................................ 416,809,376 681,397,179 828,647,114 1,325,844,397
------------ ------------- ------------ -------------
End of period...................................... $426,410,873 $ 416,809,376 $887,129,774 $ 828,647,114
============ ============= ============ =============
Undistributed (overdistributed) net investment income
(loss) at end of period............................ $ 1,259,809 $ -- $ 342,923 $ --
============ ============= ============ =============
INTERNATIONAL STOCK FUND SPECIAL FUND
---------------------------- ------------------------------
(UNAUDITED) (UNAUDITED)
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
2003 2002 (a) 2003 2002 (c)
------------ ------------- ------------- -------------
OPERATIONS:
Net investment income (loss)....................... $ 1,482,728 $ (60,403) $ (3,398,987) $ (5,336,228)
Net realized gain (loss) on investments,
foreign currency transactions and foreign
capital gains tax............................... (6,871,666) (16,450,936) (1,053,892) (89,710,944)
Net change in unrealized appreciation/depreciation
on investments and foreign currency translations. 21,846,732 (5,145,567) 123,819,516 (104,900,709)
------------ ------------- ------------- -------------
Net increase (decrease) resulting from operations.. 16,457,794 (21,656,906) 119,366,637 (199,947,881)
------------ ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A.......................................... -- -- -- --
Class B.......................................... -- -- -- --
Class D.......................................... -- -- -- --
Class Z.......................................... -- (102,850) -- --
Return of capital:
Class Z.......................................... -- (403,799) -- --
------------ ------------- ------------- -------------
Total distributions to shareholders................ -- (506,649) -- --
------------ ------------- ------------- -------------
NET CAPITAL SHARE TRANSACTIONS....................... 45,711,779 61,510,684 3,577,896 252,934,343
------------ ------------- ------------- -------------
Net increase (decrease) in net assets................ 62,169,573 39,347,129 122,944,533 52,986,462
NET ASSETS:
Beginning of period................................ 174,972,974 135,625,845 839,057,696 786,071,234
------------ ------------- ------------- -------------
End of period...................................... $237,142,547 $ 174,972,974 $ 962,002,229 $ 839,057,696
============ ============= ============= =============
Undistributed (overdistributed) net investment income
(loss) at end of period............................ $ 1,468,323 $ (14,405) $ (3,402,397) $ (3,410)
============ ============= ============= =============
SMALL CAP FUND REAL ESTATE EQUITY FUND
---------------------------- -------------------------------
(UNAUDITED) (UNAUDITED)
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JUNE 30, DECEMBER 31, June 30, December 31,
2003 2002 2003 2002 (a)
------------ ------------- ------------- -------------
OPERATIONS:
Net investment income (loss)....................... $ (2,646,979) $ (5,349,560) $ 13,654,886 $ 33,395,460
Net realized gain (loss) on investments,
foreign currency transactions and foreign
capital gains tax............................... 16,623,634 (116,601,064) 3,650,915 (12,684,181)
Net change in unrealized appreciation/depreciation
on investments and foreign currency translations. 82,105,581 (70,989,821) 73,271,203 (5,589,540)
------------ ------------- ------------- -------------
Net increase (decrease) resulting from operations.. 96,082,236 (192,940,445) 90,577,004 15,121,739
------------ ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A.......................................... -- -- (64,007) (11,804)
Class B.......................................... -- -- (26,786) (12,009)
Class D.......................................... -- -- (18,629) (4,519)
Class Z.......................................... -- -- (11,791,160) (29,889,702)
Return of capital:
Class Z.......................................... -- -- -- (3,915,328)
------------ ------------- ------------- -------------
Total distributions to shareholders................ -- -- (11,900,582) (33,833,362)
------------ ------------- ------------- -------------
NET CAPITAL SHARE TRANSACTIONS....................... (30,417,348) 68,005,564 (22,712,428) 174,112,297
------------- ------------- ------------- -------------
Net increase (decrease) in net assets................ 65,664,888 (124,934,881) 55,963,994 155,400,674
NET ASSETS:
Beginning of period................................ 493,031,068 617,965,949 776,990,508 621,589,834
------------ ------------- ------------- -------------
End of period...................................... $558,695,956 $ 493,031,068 $ 832,954,502 $ 776,990,508
============ ============= ============= =============
Undistributed (overdistributed) net investment income
(loss) at end of period............................ $ (2,465,982) $ 180,997 $ 7,504,375 $ 5,750,071
============ ============= ============= =============
TECHNOLOGY FUND STRATEGIC VALUE FUND
---------------------------- ------------------------------
(UNAUDITED) (UNAUDITED)
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
June 30, December 31, June 30, December 31,
2003 2002 (a) 2003 2002 (a)
------------ -------------- ------------- -------------
OPERATIONS:
Net investment income (loss)....................... $ (66,359) $ (122,568) $ 1,192,681 $ 1,880,227
Net realized gain (loss) on investments,
foreign currency transactions and foreign
capital gains tax............................... 1,881,408 (4,188,861) (4,002,895) (27,776,780)
Net change in unrealized appreciation/depreciation
on investments and foreign currency translations. 1,267,944 (748,526) 34,283,815 (13,657,887)
------------ ------------- ------------- -------------
Net increase (decrease) resulting from operations.. 3,082,993 (5,059,955) 31,473,601 (39,554,440)
------------ ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A.......................................... -- -- -- --
Class B.......................................... -- -- -- --
Class D.......................................... -- -- -- --
Class Z.......................................... -- -- -- (1,839,312)
Return of capital:
Class Z.......................................... -- -- -- (376,144)
------------ ------------- ------------- -------------
Total distributions to shareholders................ -- -- -- (2,215,456)
------------ ------------- ------------- -------------
NET CAPITAL SHARE TRANSACTIONS....................... 3,558,256 2,738,412 (32,113,623) 168,107,411
------------ ------------- ------------- -------------
Net increase (decrease) in net assets................ 6,641,249 (2,321,543) (640,022) 126,337,515
NET ASSETS:
Beginning of period................................ 8,063,520 10,385,063 265,841,220 139,503,705
------------ ------------- ------------- -------------
End of period...................................... $ 14,704,769 $ 8,063,520 $ 265,201,198 $ 265,841,220
============ ============= ============= =============
Undistributed (overdistributed) net investment income
(loss) at end of period............................ $ (66,359) $ -- $ 1,255,019 $ 62,338
============ ============= ============= =============
(a) Effective November 1, 2002, the Fund began offering four classes of shares:
Class A, Class B, Class D and Class Z shares. Prior to November 1, 2002, the
Fund was single class which was subsequently named Class Z shares.
(b) Effective November 1, 2002, the Fund began offering five classes of shares:
Class A, Class B, Class D, Class G and Class Z shares. Prior to November 1,
2002, the Fund was single class which was subsequently named Class Z shares.
(c) Effective November 1, 2002, the Fund began offering six classes of shares:
Class A, Class B, Class D, Class G, Class T and Class Z shares. Prior to
November 1, 2002, the Fund was single class which was subsequently named
Class Z shares.
See Accompanying Notes to Financial Statements
138-139 Spread
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
COLUMBIA FUNDS
BALANCED FUND SHORT TERM BOND FUND
---------------------------- ------------------------------
(UNAUDITED) (UNAUDITED)
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
2003 2002 (a) 2003 2002 (b)
------------ ------------- ------------- -------------
OPERATIONS:
Net investment income.............................. $ 6,983,396 $ 20,794,186 $ 5,690,028 $ 3,936,510
Net realized gain (loss) on investments............ (9,450,608) (71,176,504) 4,014,692 (5,253)
Net change in net unrealized appreciation/
depreciation on investments..................... 50,578,387 (68,893,518) 231,520 2,802,185
------------ ------------- ------------- -------------
Net increase (decrease) resulting from operations.. 48,111,175 (119,275,836) 9,936,240 6,733,442
------------ ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A.......................................... (2,856) (693) (207,615) (7,886)
Class B.......................................... (8,640) (2,254) (132,930) (6,548)
Class D.......................................... (2,920) (1,798) (113,340) (9,865)
Class G.......................................... -- -- (16,944) (2,198)
Class T.......................................... -- -- (371,866) (48,546)
Class Z.......................................... (6,954,077) (21,201,650) (5,040,566) (3,843,068)
From net realized gains:
Class A.......................................... -- -- -- --
Class B.......................................... -- -- -- --
Class D.......................................... -- -- -- --
Class Z.......................................... -- -- -- (18,783)
------------ ------------- ------------- -------------
Total distributions to shareholders................ (6,968,493) (21,206,395) (5,883,261) (3,936,894)
------------ ------------- ------------- -------------
NET CAPITAL SHARE TRANSACTIONS....................... (63,355,893) (173,776,980) 185,520,274 301,621,677
------------ ------------- ------------- -------------
Net increase (decrease) in net assets................ (22,213,211) (314,259,211) 189,573,253 304,418,225
NET ASSETS:
Beginning of period................................ 669,490,083 983,749,294 367,347,830 62,929,605
------------ ------------- ------------- -------------
End of period...................................... $647,276,872 $ 669,490,083 $ 556,921,083 $ 367,347,830
============ ============= ============= =============
Undistributed (overdistributed) net investment income
(loss) at end of period............................ $ (340,280) $ (355,183) $ (397,994) $ (204,761)
============ ============= ============= =============
FIXED INCOME NATIONAL MUNICIPAL
SECURITIES FUND BOND FUND
---------------------------- ------------------------------
(UNAUDITED) (UNAUDITED)
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
2003 2002 (a) 2003 2002 (a)
------------ ------------- ------------- -------------
OPERATIONS:
Net investment income.............................. $ 10,820,590 $ 24,670,569 $ 322,124 $ 603,412
Net realized gain (loss) on investments............ 9,277,815 (2,558,516) 63,153 88,597
Net change in net unrealized appreciation/
depreciation on investments..................... 1,115,454 14,601,556 310,467 631,224
------------ ------------ ------------- -------------
Net increase (decrease) resulting from operations.. 21,213,859 36,713,609 695,744 1,323,233
------------ ------------ ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A.......................................... (48,571) (1,157) (3,799) (200)
Class B.......................................... (41,377) (2,638) (4,584) (232)
Class D.......................................... (24,584) (1,013) (3,334) (147)
Class G.......................................... -- -- -- --
Class T.......................................... -- -- -- --
Class Z.......................................... (11,250,044) (25,339,044) (309,765) (598,784)
From net realized gains:
Class A.......................................... -- -- -- (230)
Class B.......................................... -- -- -- (784)
Class D.......................................... -- -- -- (220)
Class Z.......................................... -- -- -- (66,172)
------------- ------------ ------------- -------------
Total distributions to shareholders................ (11,364,576) (25,343,852) (321,482) (666,769)
------------- ------------ ------------- -------------
NET CAPITAL SHARE TRANSACTIONS....................... 11,670,722 73,248,344 135,281 2,233,945
------------- ------------ ------------- -------------
Net increase (decrease) in net assets................ 21,520,005 84,618,101 509,543 2,890,409
NET ASSETS:
Beginning of period................................ 550,361,600 465,743,499 16,659,255 13,768,846
------------ ------------ ------------- -------------
End of period...................................... $571,881,605 $550,361,600 $ 17,168,798 $ 16,659,255
============ ============ ============= =============
Undistributed (overdistributed) net investment income
(loss) at end of period............................ $ (1,429,580) $ (885,594) $ 5,538 $ 4,896
============ ============ ============= =============
OREGON MUNICIPAL
BOND FUND HIGH YIELD FUND
---------------------------- ------------------------------
(UNAUDITED) (UNAUDITED)
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
2003 2002 (a) 2003 2002 (a)
------------ ------------- -------------- -------------
OPERATIONS:
Net investment income.............................. $ 10,899,331 $ 22,413,341 $ 35,133,030 $ 29,377,465
Net realized gain (loss) on investments............ 2,376,789 3,932,577 1,252,109 (27,771,338)
Net change in net unrealized appreciation/
depreciation on investments..................... 6,347,297 17,775,246 43,832,599 9,777,957
------------ ------------- -------------- -------------
Net increase (decrease) resulting from operations.. 19,623,417 44,121,164 80,217,738 11,384,084
------------ ------------- -------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A.......................................... (14,460) (932) (2,890,349) (111,753)
Class B.......................................... (10,069) (1,094) (1,347,545) (63,166)
Class D.......................................... (11,574) (1,673) (1,647,194) (57,867)
Class G.......................................... -- -- -- --
Class T.......................................... -- -- -- --
Class Z.......................................... (10,845,840) (22,348,370) (31,581,522) (30,110,118)
From net realized gains:
Class A.......................................... -- (1,987) -- --
Class B.......................................... -- (2,513) -- --
Class D.......................................... -- (2,990) -- --
Class Z.......................................... -- (5,015,648) -- --
------------ ------------- -------------- -------------
Total distributions to shareholders................ (10,881,943) (27,375,207) (37,466,610) (30,342,904)
------------ ------------- -------------- -------------
NET CAPITAL SHARE TRANSACTIONS....................... 10,474,261 1,779,138 719,933,669 551,477,756
------------ ------------- -------------- -------------
Net increase (decrease) in net assets................ 19,215,735 18,525,095 762,684,797 532,518,936
NET ASSETS:
Beginning of period................................ 510,162,968 491,637,873 771,512,777 238,993,841
------------ ------------- -------------- -------------
End of period...................................... $529,378,703 $ 510,162,968 $1,534,197,574 $ 771,512,777
============ ============= ============== =============
Undistributed (overdistributed) net investment income
(loss) at end of period............................ $ 149,364 $ 131,976 $ (3,322,607) $ (989,027)
============ ============= ============== =============
DAILY INCOME COMPANY
----------------------------
(UNAUDITED)
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, DECEMBER 31,
2003 2002
------------- --------------
OPERATIONS:
Net investment income........................ $ 3,334,719 $ 14,142,055
Net realized gain (loss) on investments...... -- --
Net change in net unrealized appreciation/
depreciation on investments............... -- --
------------- --------------
Net increase (decrease) resulting from
operations.................................. 3,334,719 14,142,055
------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A.................................... -- --
Class B.................................... -- --
Class D.................................... -- --
Class G.................................... -- --
Class T.................................... -- --
Class Z.................................... (3,463,989) (14,142,055)
From net realized gains:
Class A.................................... -- --
Class B.................................... -- --
Class D.................................... -- --
Class Z.................................... -- --
------------- --------------
Total distributions to shareholders.......... (3,463,989) (14,142,055)
------------- --------------
NET CAPITAL SHARE TRANSACTIONS................. (237,234,871) (117,460,299)
------------- --------------
Net increase (decrease) in net assets.......... (237,364,141) (117,460,299)
NET ASSETS:
Beginning of period.......................... 1,136,074,898 1,253,535,197
------------- --------------
End of period................................ $ 898,710,757 $1,136,074,898
============= ==============
Undistributed (overdistributed) net
investment income (loss) at end of period...... $ (129,270) $ --
============= ==============
(a) Effective November 1, 2002, the Fund began offering four classes of shares:
Class A, Class B, Class D and Class Z shares. Prior to November 1, 2002, the
Fund was single class which was subsequently named Class Z shares.
(b) Effective November 1, 2002, the Fund began offering six classes of shares:
Class A, Class B, Class D, Class G, Class T and Class Z shares. Prior to
November 1, 2002, the Fund was single class which was subsequently named
Class Z shares.
140-141 Spread
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The Columbia Funds (the "Funds") consist of the following:
Columbia Common Stock Fund
Columbia Growth Fund
Columbia International Stock Fund
Columbia Special Fund
Columbia Small Cap Fund
Columbia Real Estate Equity Fund
Columbia Technology Fund
Columbia Strategic Value Fund
Columbia Balanced Fund
Columbia Short Term Bond Fund
Columbia Fixed Income Securities Fund
Columbia National Municipal Bond Fund
Columbia Oregon Municipal Bond Fund
Columbia High Yield Fund
Columbia Daily Income Company
All Funds are open-end investment companies registered under the Investment
Company Act of 1940, as amended, and are diversified except for the Columbia
Real Estate Equity Fund, Columbia Technology Fund and Columbia Oregon Municipal
Bond Fund, which are non-diversified.
Effective November 1, 2002, each of the Funds, except Columbia Growth Fund,
Columbia Special Fund, Columbia Small Cap Fund, Columbia Short Term Bond Fund
and Columbia Daily Income Company, offer four classes of shares: Class A, Class
B, Class D and Class Z. The Columbia Small Cap Fund and Columbia Daily Income
Company offer only Class Z shares. The Columbia Growth Fund offers five classes
of shares: Class A, Class B, Class D, Class G and Class Z shares. The Columbia
Special Fund and Columbia Short Term Bond Fund offer six classes of shares:
Class A, Class B, Class D, Class G, Class T and Class Z shares. Prior to
November 1, 2002, each Fund was single class, which was subsequently named Class
Z shares.
Class A and Class T shares are sold with a front-end sales charge. A 1.00%
contingent deferred sales charge ("CDSC") is assessed to Class A and Class T
shares purchased without an initial sales charge on redemptions made within
eighteen months of an original purchase of $1 million to $25 million. Class B
shares are subject to a CDSC. Class B shares will convert to Class A shares in
three, four or eight years after purchase, depending on the program under which
shares were purchased. Class D shares are sold with a front end sales charge and
a 1.00% CDSC on redemptions made within one year after purchase. Class G shares
are subject to a CDSC. Class G shares will convert to Class T shares eight years
after purchase. Class Z shares are offered continuously at net asset value.
There are certain restrictions on the purchase of Class Z shares, as described
in each Fund's prospectus.
As of the end of business on December 6, 2002, the Galaxy Large Cap Growth
Fund merged into the Columbia Growth Fund as follows:
NET ASSETS
OF THE
GALAXY LARGE
SHARES CAP GROWTH FUND UNREALIZED
ISSUED RECEIVED DEPRECIATION(1)
--------------- --------------- ---------------
4,943,168 $108,315,198 $(8,049,749)
NET ASSETS NET ASSETS
NET ASSETS OF THE OF THE
OF THE GALAXY LARGE COLUMBIA GROWTH
COLUMBIA GROWTH CAP GROWTH FUND FUND
FUND IMMEDIATELY IMMEDIATELY
PRIOR TO PRIOR TO AFTER
COMBINATION COMBINATION COMBINATION
--------------- --------------- ---------------
$798,985,765 $108,315,198 $907,300,963
As of the end of business on November 1, 2002, the Stein Roe International
Fund ("SRIF") and Liberty Newport International Fund ("LNIF") merged into the
Columbia International Stock Fund as follows:
NET ASSETS
SHARES OF SRIF AND LNIF UNREALIZED
ISSUED RECEIVED DEPRECIATION(1)
--------------- --------------- ---------------
SRIF 1,426,029 $14,246,030 $(214,705)
LNIF 3,200,017 31,968,172 (948,177)
NET ASSETS
OF THE
NET ASSETS NET ASSETS COLUMBIA
OF THE OF INTERNATIONAL
COLUMBIA INTERNATIONAL SRIF AND LNIF STOCK FUND
STOCK FUND IMMEDIATELY IMMEDIATELY
PRIOR TO PRIOR TO AFTER
COMBINATION COMBINATION COMBINATION
--------------- --------------- ---------------
$125,693,014 $46,214,202 $171,907,216
142
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
As of the end of business on November 1, 2002, the Liberty Midcap Growth
Fund ("LMCGF"), Galaxy Growth II Fund ("GGIIF") and Stein Roe Capital
Opportunities Fund ("SRCOF") merged into the Columbia Special Fund as follows:
NET ASSETS
OF LMCGF,
SHARES GGIIF AND SRCOF UNREALIZED
ISSUED RECEIVED APPRECIATION(1)
--------------- --------------- ---------------
LMCGF 1,926,436 $ 29,609,516 $1,312,196
GGIIF 3,693,522 56,786,294 419,666
SRCOF 13,391,313 205,776,298 4,912,798
NET ASSETS
NET ASSETS NET ASSETS OF THE
OF THE OF LMCGF, COLUMBIA SPECIAL
COLUMBIA SPECIAL GGIIF AND SRCOF FUND
FUND IMMEDIATELY IMMEDIATELY
PRIOR TO PRIOR TO AFTER
COMBINATION COMBINATION COMBINATION
--------------- --------------- ---------------
$588,307,694 $292,172,108 $880,479,802
As of the end of business on November 1, 2002, the Liberty Contrarian Fund
("LCF") and Liberty Contrarian Equity Fund ("LCEF") merged into the Columbia
Strategic Value Fund as follows:
NET ASSETS
OF LCF
SHARES AND LCEF UNREALIZED
ISSUED RECEIVED DEPRECIATION(1)
--------------- --------------- ---------------
LCF 249,129 $ 3,236,185 $ (374,279)
LCEF 4,319,838 56,114,694 (7,312,321)
NET ASSETS
NET ASSETS NET ASSETS OF THE
OF THE OF LCF COLUMBIA STRATEGIC
COLUMBIA STRATEGIC AND LCEF VALUE FUND
VALUE FUND IMMEDIATELY IMMEDIATELY
PRIOR TO PRIOR TO AFTER
COMBINATION COMBINATION COMBINATION
--------------- --------------- ---------------
$216,528,060 $59,350,879 $275,878,939
As of the end of business on December 6, 2002, the Galaxy Short Term Bond
Fund merged into the Columbia Short Term Bond Fund as follows:
NET ASSETS
OF THE
GALAXY SHORT TERM
SHARES BOND FUND UNREALIZED
ISSUED RECEIVED APPRECIATION(1)
--------------- --------------- ---------------
25,924,097 $223,465,181 $3,331,362
NET ASSETS
NET ASSETS OF THE
NET ASSETS OF THE COLUMBIA
OF THE GALAXY SHORT TERM SHORT TERM
COLUMBIA SHORT TERM BOND FUND BOND FUND
BOND FUND IMMEDIATELY IMMEDIATELY
PRIOR TO PRIOR TO AFTER
COMBINATION COMBINATION COMBINATION
--------------- --------------- ---------------
$125,747,136 $223,465,181 $349,212,317
1 Unrealized appreciation/depreciation is included in the respective
Net Assets Received amounts shown above.
The following is a summary of significant accounting policies, in
conformity with accounting principles generally accepted in the United States of
America, which are consistently followed by the Funds in the preparation of
their financial statements.
INVESTMENT VALUATION. Equity securities are valued based on the last sale
prices reported by the principal securities exchanges on which the investments
are traded or, in the absence of recorded sales, at the closing bid prices on
such exchanges or over-the-counter markets. If any foreign share prices are not
readily available as a result of limited share activity, the securities are
valued at the last sale price of the local shares in the principal market in
which such securities are normally traded. Fixed-income securities are valued
based on market values as quoted by dealers who are market makers in these
securities, by independent pricing services, or by the investment advisor using
a methodology approved by the Board of Directors. Such services may use various
pricing techniques which take into account appropriate factors such as yield,
quality, coupon rate, maturity, type of issue, trading characteristics and other
data, as well as broker quotes. Certain securities, which tend to be more thinly
traded and of lesser quality, are priced based on fundamental analysis of the
financial condition of the issuer and the estimated value of any collateral.
Valuations developed through pricing techniques may vary from the actual amounts
realized upon sale of the securities, and the potential variation may be greater
for those securities valued using fundamental analysis. Short-term obligations
with less than 60 days to maturity when purchased and all securities held by
Columbia Daily Income Company, are valued at amortized cost, which approximates
market value. Investments for which market quotations are not readily available
will be valued at fair market value as determined in good faith under procedures
established by and under the general supervision of the Board of Directors of
each Fund. Foreign currency exchange rates are generally determined prior to the
close of the New York Stock Exchange. Occasionally, events affecting the values
of such securities and such
143
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
exchange rates may occur between the times at which they are determined and
the close of the customary trading session of the New York Stock Exchange, which
would not be reflected in the computation of the Funds' net asset value. If
events materially affecting the value of such securities and such exchange rates
occur during such period, then these securities will be valued at their fair
value as determined in good faith under procedures established by and under the
general supervision of the Board of Directors of each Fund.
REPURCHASE AGREEMENTS. The Funds may engage in repurchase agreement
transactions. The Funds, through their custodians, receive delivery of
underlying securities collateralizing repurchase agreements. The Funds'
investment advisor determines that the value of the underlying securities is at
all times at least equal to the resale price. In the event of default or
bankruptcy by the other party to the agreement, realization and/or retention of
the collateral may be subject to legal proceedings.
FINANCIAL FUTURES CONTRACTS. Certain Funds may invest in financial futures
contracts solely for the purpose of hedging their existing portfolio securities,
or securities that the Funds intend to purchase, against fluctuations in fair
value caused by changes in prevailing market interest rates. Upon entering into
a financial futures contract, a fund is required to pledge to the broker an
amount of cash, U.S. government securities or other assets, equal to a certain
percentage of the contract amount (initial margin deposit). Subsequent payments,
known as "variation margin," are made or received by a fund each day, depending
on the daily fluctuations in the fair value of the underlying security. A fund
recognizes an unrealized gain or loss equal to the daily variation margin.
Should market conditions move unexpectedly, a fund may not achieve the
anticipated benefits of the financial futures contracts and may realize a loss.
The use of futures transactions involves the risk of imperfect correlation in
movements in the price of futures contracts, interest rates and the underlying
assets. The daily changes in contract value are recorded as unrealized gains or
losses, and a fund recognizes the realized gain or loss when the contract is
closed.
INVESTMENT TRANSACTIONS. Investment transactions are accounted for as of
the date the investments are purchased or sold. Net realized gains and losses
are determined on the identified cost basis, which is also used for federal
income tax purposes. Securities purchased on a when-issued or forward-delivery
basis may be settled a month or more after trade date; interest income is not
accrued until settlement date. Each of the Funds will segregate liquid assets
with a current value at least equal to the amount of its when-issued purchase
commitments until settlement date.
INVESTMENT INCOME AND EXPENSES. Dividend income less foreign taxes withheld
(if any) is recorded on the ex-dividend date. Certain dividends from foreign
securities will be recorded as soon as the Fund is informed of the dividend, if
such information is obtained subsequent to the ex-dividend date. Interest income
is recorded on the accrual basis and includes accretion of discounts,
amortization of premiums and paydown gains and losses. Expenses are recorded on
the accrual basis and each Fund bears expenses incurred specifically on its
behalf as well as a portion of general expenses incurred on behalf of all Funds.
DETERMINATION OF CLASS NET ASSET VALUES. All income, expenses (other than
class specific fees), and realized and unrealized gains (losses), are allocated
to each class proportionately on a daily basis for purposes of determining the
net asset value of each class.
FORWARD CURRENCY EXCHANGE CONTRACTS. Certain Funds may enter into forward
currency exchange contracts in connection with planned purchases or sales of
securities or to hedge the U.S. dollar value of the portfolio securities
denominated in a foreign currency. Contracts are valued at the prevailing
forward exchange rate of the underlying currencies. The gain or loss arising
from the difference between the original contract price and the closing price of
such contract is included in the net realized gains or losses from foreign
currency transactions. Fluctuations in the value of forward currency contracts
are recorded for financial reporting purposes as unrealized gains or losses. The
Funds could be exposed to risks if counterparties to the forward contracts are
unable to meet the terms of their contracts or if the value of the foreign
currency changes unfavorably. The effect of any change in the value of a hedged
foreign currency would be offset by the corresponding change (resulting from a
change in exchange rates) in value of the securities denominated in that
currency. As of June 30, 2003, the Funds had no outstanding forward currency
contracts.
FOREIGN CURRENCY TRANSLATIONS. The books and records of the Funds are
maintained in U.S. dollars. Foreign currencies, investments and other assets and
liabilities of the Funds are translated into U.S. dollars at the daily rates of
exchange on the valuation date. Purchases and sales of investment securities,
dividend and interest income and certain expenses are translated at the rates of
exchange prevailing on the respective dates of such transactions.
144
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
The Funds do not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from the
fluctuations arising from changes in market prices on investments held. Such
fluctuations are included with the net realized and unrealized gain or loss from
investments.
Reported net realized foreign currency gains or losses arise from the sales
of foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the difference between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Funds' books and the U.S. dollar equivalents of the amounts actually received or
paid. Net unrealized foreign exchange gains or losses arise from changes in the
value of assets and liabilities, other than investments in securities, resulting
from changes in the exchange rate.
USE OF ESTIMATES. The preparation of the financial statements in accordance
with accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosures 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.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends from net investment
income of the Columbia Real Estate Equity Fund and Columbia Balanced Fund are
declared and paid quarterly. Dividends from net investment income of the
Columbia Common Stock Fund, Columbia Growth Fund, Columbia International Stock
Fund, Columbia Special Fund, Columbia Small Cap Fund, Columbia Technology Fund
and Columbia Strategic Value Fund are declared and paid annually. Dividends from
net investment income of the Columbia Short Term Bond Fund, Columbia Fixed
Income Securities Fund, Columbia National Municipal Bond Fund, Columbia Oregon
Municipal Bond Fund and Columbia High Yield Fund are declared daily and paid
monthly. Dividends from net investment income of the Columbia Daily Income
Company are declared and paid daily. Distributions from any net realized gains
are generally declared and paid annually for all Funds. Additional distributions
of net investment income and capital gains for each Fund may be made at the
discretion of the Board of Directors in accordance with federal income tax
regulations.
FEDERAL INCOME TAXES. Each Fund intends to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies by
distributing substantially all taxable net investment income and net realized
gains to its shareholders in a manner that results in no tax to the Funds.
Therefore, no federal income or excise tax provision is required.
FOREIGN CAPITAL GAINS TAXES. Realized gains in certain countries may be
subject to foreign taxes at the Fund level, at rates ranging from approximately
10% to 30%. The Funds provide for such foreign taxes on net realized and
unrealized gains at the appropriate rate for each jurisdiction.
OTHER. There are certain additional risks involved when investing in
foreign securities that are not inherent with investments in domestic
securities. These risks may involve foreign currency exchange rate fluctuations,
adverse political and economic developments and the possible prevention of
currency exchange or other foreign governmental laws or restrictions.
For the Columbia Oregon Municipal Fund there are certain risks arising from
geographic concentration in any one state. Certain revenue or tax related events
in a state may impair the ability of certain issuers of municipal securities to
pay principal and interest on their obligations.
Also, certain non-diversified funds may focus their investments in certain
industries, subjecting them to greater risk than a fund that is more
diversified.
The Columbia High Yield Fund invests in lower rated debt securities, which
may be more susceptible to adverse economic conditions than investment grade
holdings. These securities are often subordinated to the prior claims of other
senior lenders, and uncertainties may exist as to an issuer's ability to meet
principal and interest payments.
145
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 2 - INVESTMENT TRANSACTIONS
As of June 30, 2003, for federal income tax purposes, net unrealized
appreciation (depreciation) on investments was as follows:
UNREALIZED UNREALIZED NET UNREALIZED
APPRECIATION DEPRECIATION APPRECIATION
------------ ------------- --------------
Columbia Common Stock Fund.............. $ 64,120,140 $ (4,595,997) $ 59,524,143
Columbia Growth Fund.................... 159,688,310 (8,424,601) 151,263,709
Columbia International Stock Fund....... 27,714,058 (10,043,019) 17,671,039
Columbia Special Fund................... 170,038,426 (22,566,394) 147,472,032
Columbia Small Cap Fund................. 114,213,700 (10,269,165) 103,944,535
Columbia Real Estate Equity Fund........ 145,369,740 (11,884,549) 133,485,191
Columbia Technology Fund................ 1,852,246 (191,569) 1,660,677
Columbia Strategic Value Fund........... 36,470,527 (8,269,085) 28,201,442
Columbia Balanced Fund.................. 72,711,392 (4,723,907) 67,987,485
Columbia Short Term Bond Fund........... 7,730,585 (776,379) 6,954,206
Columbia Fixed Income Securities Fund... 25,794,350 (1,565,786) 24,228,564
Columbia National Municipal Bond Fund... 1,083,718 (14,459) 1,069,259
Columbia Oregon Municipal Bond Fund..... 34,316,240 (3,329,242) 30,986,998
Columbia High Yield Fund................ 53,052,219 (2,916,640) 50,135,579
During the six months ended June 30, 2003, purchases and sales of
investments, other than short-term obligations, were as follows:
PURCHASES SALES
--------------- --------------
Columbia Common Stock Fund............... $ 330,022,745 $ 366,497,031
Columbia Growth Fund..................... 660,152,225 717,294,013
Columbia International Stock Fund........ 91,112,470 42,954,360
Columbia Special Fund.................... 537,274,116 516,593,900
Columbia Small Cap Fund.................. 279,254,013 304,941,040
Columbia Real Estate Equity Fund......... 206,427,672 231,704,671
Columbia Technology Fund................. 45,308,117 41,698,207
Columbia Strategic Value Fund............ 103,272,838 148,243,890
Columbia Balanced Fund................... 544,210,863 613,313,263
Columbia Short Term Bond Fund............ 583,192,307 296,837,304
Columbia Fixed Income Securities Fund.... 686,190,507 653,846,605
Columbia National Municipal Bond Fund.... 1,564,396 1,294,034
Columbia Oregon Municipal Bond Fund...... 42,990,848 35,009,052
Columbia High Yield Fund................. 786,539,636 103,615,060
During the six months ended June 30, 2003, purchases and sales of U.S.
Government securities were as follows:
PURCHASES SALES
--------------- --------------
Columbia Common Stock Fund............... $ 3,355,849 $ 3,882,012
Columbia Growth Fund..................... 4,056,957 13,563,909
Columbia Strategic Value Fund............ 751,850 --
Columbia Balanced Fund................... 199,321,332 208,477,105
Columbia Short Term Bond Fund............ 42,046,902 41,809,724
Columbia Fixed Income Securities Fund.... 570,447,881 544,515,746
146
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 3 -- FEDERAL TAX INFORMATION
Income and capital gain distributions are determined in accordance with
income tax regulations, which may differ from accounting principles generally
accepted in the United States of America.
The following capital loss carryforwards, determined as of December 31,
2002, are available to reduce taxable income arising from future net realized
gains on investments, if any, to the extent permitted by the Internal Revenue
Code:
YEAR OF EXPIRATION
2003 2004 2005 2006 2007 2008 2009 2010 Total
------- -------- ---------- -------- ----------- ---------- ----------- ----------- ------------
Columbia Common
Stock Fund...... $ -- $ -- $ -- $ -- $ -- $ -- $ 52,039,637 $ 73,274,519 $125,314,156
Columbia Growth
Fund............ -- -- -- -- 23,087,439 7,477,479 162,540,209 201,393,752 394,498,879
Columbia International
Stock Fund...... -- -- -- -- 7,390,519 5,799,517 24,287,430 16,745,931 54,223,397
Columbia Special
Fund............ -- -- -- -- 9,239,978 30,472,022 123,971,781 95,645,403 259,329,184
Columbia Small Cap
Fund............ -- -- -- -- -- -- 117,057,825 101,480,033 218,537,858
Columbia Real Estate
Equity Fund..... -- -- -- -- -- 1,271,327 -- 14,545,453 15,816,780
Columbia Technology
Fund............ -- -- -- -- -- -- 4,393,873 4,569,408 8,963,281
Columbia Strategic
Value Fund...... -- -- -- -- 1,431,991 789,528 -- 18,244,149 20,465,668
Columbia Balanced
Fund............ -- -- -- -- -- -- 65,697,715 69,939,934 135,637,649
Columbia Short Term
Bond Fund....... 9,409 114,406 1,642,976 517,428 -- 1,103,188 -- -- 3,387,407
Columbia Fixed Income
Securities Fund. -- -- -- -- 339,655 8,464,598 -- 2,709,651 11,513,904
Columbia High Yield
Fund............ -- -- -- -- 1,036,180 1,547,817 6,534,263 26,808,027 35,926,287
Of the capital loss carryforwards attributable to Columbia Growth Fund,
$30,564,918 ($23,087,439 expiring 12/31/07 and $7,477,479 expiring 12/31/08) was
obtained upon the Columbia Growth Fund's merger with Galaxy Large Cap Growth
Fund (See Note 1).
Of the capital loss carryforwards attributable to Columbia International Stock
Fund, $9,124,064 ($7,196,259 expiring 12/31/07 and $1,927,805 expiring 12/31/08)
and $4,725,563 ($194,260 expiring 12/31/07, $3,871,712 expiring 12/31/08 and
$659,591 expiring 12/31/09) were obtained upon the Columbia International Stock
Fund's merger with LNIF and SRIF, respectively (see Note 1).
Of the capital loss carryforwards attributable to Columbia Special
Fund, $9,732,198 ($927,932 expiring 12/31/07, $7,427,424 expiring 12/31/08 and
$1,376,842 expiring 12/31/09), $39,492,613 ($5,340,814 expiring 12/31/07,
$22,105,946 expiring 12/31/08 and $12,045,853 expiring 12/31/09) and $4,415,697
($2,971,232 expiring 12/31/07, $938,652 expiring 12/31/08 and $505,813 expiring
12/31/09) were obtained upon the Columbia Special Fund's mergers with LMCGF,
SRCOF and GGIIF, respectively (See Note 1).
Of the capital loss carryforwards attributable to Columbia Strategic Value
Fund, $1,968,809 ($1,331,685 expiring 12/31/07 and $637,124 expiring 12/31/08)
and $252,710 ($100,306 expiring 12/31/07 and $152,404 expiring 12/31/08) were
obtained upon the Columbia Strategic Value Fund's merger with LCEF and LCF,
respectively (See Note 1).
Of the capital loss carryforwards attributable to Columbia Short Term Bond
Fund, $3,387,407 ($9,409 expiring 12/31/03, $114,406 expiring 12/31/04,
$1,642,976 expiring 12/31/05, $517,428 expiring 12/31/06 and $1,103,188 expiring
12/31/08) was obtained upon the Columbia Short Term Bond Fund's merger with
Galaxy Short Term Bond Fund (See Note 1).
Expired capital loss carryforwards, if any, are recorded as a reduction of
paid-in capital.
147
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 4 -- TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
On April 1, 2003, Columbia Management Company ("CMC"), the investment
advisor to the Funds, and Colonial Management Associates, Inc. ("Colonial"), the
pricing and bookkeeping agent, merged into Columbia Management Advisors, Inc.
("Columbia"), formerly known as Columbia Management Co., an indirect,
wholly-owned subsidiary of FleetBoston Financial Corporation. At the time of the
merger, Columbia assumed the obligations of CMC and Colonial with respect to the
Funds. The merger did not change the way the Funds are managed, the investment
personnel assigned to manage the Funds or the fees paid by the Funds.
MANAGEMENT FEES. Investment management fees were paid by each Fund to
Columbia. The fees are based on the following annual rates of average daily net
assets:
FEES ON FEES ON FEES ON FEES ON
NET ASSETS NET ASSETS NET ASSETS NET ASSETS
FIRST NEXT NEXT EXCEEDING
$200 MILLION $300 MILLION $500 MILLION $1 BILLION
------------ ------------ ------------ -------------
Columbia Common Stock Fund............... 0.600% 0.600% 0.600% 0.600%
Columbia Growth Fund..................... 0.750% 0.625% 0.500% 0.500%
Columbia International Stock Fund........ 1.000% 1.000% 1.000% 1.000%
Columbia Special Fund.................... 1.000% 1.000% 0.750% 0.750%
Columbia Small Cap Fund.................. 1.000% 1.000% 1.000% 1.000%
Columbia Real Estate Equity Fund......... 0.750% 0.750% 0.750% 0.750%
Columbia Technology Fund................. 1.000% 1.000% 1.000% 1.000%
Columbia Strategic Value Fund............ 0.750% 0.750% 0.750% 0.750%
Columbia Balanced Fund................... 0.500% 0.500% 0.500% 0.500%
Columbia Short Term Bond Fund............ 0.500% 0.500% 0.500% 0.500%
Columbia Fixed Income Securities Fund.... 0.500% 0.500% 0.500% 0.500%
Columbia National Municipal Bond Fund.... 0.500% 0.500% 0.500% 0.500%
Columbia Oregon Municipal Bond Fund...... 0.500% 0.500% 0.500% 0.500%
Columbia High Yield Fund................. 0.600% 0.600% 0.600% 0.600%
Columbia Daily Income Company............ 0.500% 0.500% 0.450% 0.400%
TRANSFER AGENT FEES. The transfer agent for the Funds is Liberty Fund
Services, Inc. ("LFSI"), an affiliate of Columbia. For all Funds' Class Z
shares, with the exception of Columbia National Municipal Bond Fund, LFSI is
compensated based on a monthly fee equal to the higher of a per account fee or a
flat fee of $1,500 per month. Columbia National Municipal Bond Fund is not
subject to the $1,500 flat fee. For Class A, Class B, Class D, Class G and Class
T shares, each Fund pays LFSI a monthly fee that is the lower of: 1) the monthly
fee described for Class Z shares in the preceding sentence, as applied to Class
A, Class B, Class D, Class G and Class T shares, or 2) a fee based upon an
annual rate of 0.06% of the average daily net assets attributable to Class A,
Class B, Class D, Class G and Class T shares, plus a per transaction fee and a
per account fee. In addition, LFSI receives reimbursement for certain
out-of-pocket expenses.
PRICING AND BOOKKEEPING FEES. Columbia is responsible for providing pricing
and bookkeeping services to the Funds under a Pricing, Bookkeeping and Fund
Administration Agreement. Under a separate agreement (the "Outsourcing
Agreement"), Columbia has delegated certain of these functions to State Street
Bank and Trust Company ("State Street"). Columbia pays fees to State Street
under the Outsourcing Agreement. Under its pricing and bookkeeping agreement
with the Funds, Columbia receives from each Fund a monthly fee equal to 0.01%
annually of each Fund's average daily net assets. The fee for a Fund in any year
shall not be less than $25,000 or exceed $150,000.
148
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
UNDERWRITING DISCOUNTS, SERVICE AND DISTRIBUTION FEES. Liberty Funds
Distributor, Inc. (the "Distributor"), an affiliate of Columbia, is the Funds'
principal underwriter. For the six months ended June 30, 2003, the Funds have
been advised that the Distributor retained fees as follows:
FRONT-END CONTINGENT DEFERRED
SALES CHARGE SALES CHARGE
------------------------------- -------------------------------------------
CLASS A CLASS D CLASS T CLASS A CLASS B CLASS D CLASS G
--------- --------- --------- -------- --------- --------- ----------
Columbia Common Stock Fund................ $ 164 $ -- $ -- $ -- $ 7 $ -- $ --
Columbia Growth Fund...................... 2,131 -- -- 1,109 -- 45 15,782
Columbia International Stock Fund......... 6,613 -- -- 2,087 14,784 106 --
Columbia Special Fund..................... 776 -- 54 22 5,641 119 1,577
Columbia Real Estate Equity Fund.......... 8,678 -- -- -- 661 97 --
Columbia Technology Fund.................. 691 -- -- -- 154 -- --
Columbia Strategic Value Fund............. 704 -- -- 203 6,141 92 --
Columbia Balanced Fund.................... 710 -- -- 77 1,607 -- --
Columbia Short Term Bond Fund............. 28,783 -- 33 953 31,971 10,769 5,094
Columbia Fixed Income Securities Fund..... 3,902 -- -- -- 4,245 1,671 --
Columbia National Municipal Bond Fund..... 1,145 -- -- -- -- 121 --
Columbia Oregon Municipal Bond Fund....... 3,485 -- -- -- 625 2,100 --
Columbia High Yield Fund.................. 127,693 -- -- -- 46,181 21,861 --
The Funds have adopted a 12b-1 plan (the "Plan") which requires the payment
of a monthly service and distribution fee to the Distributor at an annual rate
of average daily net assets as follows:
DISTRIBUTION FEE SERVICE FEE
------------------------------------------ -----------------------------------------
CLASS A(a) CLASS B CLASS D CLASS G CLASS A(a) CLASS B CLASS D CLASS G
--------- --------- --------- --------- ---------- --------- -------- --------
Columbia Common Stock Fund................. 0.10% 0.75% 0.75% -- 0.25% 0.25% 0.25% --
Columbia Growth Fund....................... 0.10% 0.75% 0.75% 0.65%(b) 0.25% 0.25% 0.25% 0.50%(b)
Columbia International Stock Fund.......... -- 0.75% 0.75% -- 0.25% 0.25% 0.25% --
Columbia Special Fund...................... 0.10% 0.75% 0.75% 0.65%(b) 0.25% 0.25% 0.25% 0.50%(b)
Columbia Real Estate Equity Fund........... 0.10% 0.75% 0.75% -- 0.25% 0.25% 0.25% --
Columbia Technology Fund................... 0.10% 0.75% 0.75% -- 0.25% 0.25% 0.25% --
Columbia Strategic Value Fund.............. -- 0.75% 0.75% -- 0.25% 0.25% 0.25% --
Columbia Balanced Fund..................... 0.10% 0.75% 0.75% -- 0.25% 0.25% 0.25% --
Columbia Short Term Bond Fund.............. 0.10% 0.75% 0.75% 0.65%(c) 0.25% 0.25% 0.25% 0.50%(c)
Columbia Fixed Income Securities Fund...... 0.10% 0.75% 0.75% -- 0.25% 0.25% 0.25% --
Columbia National Municipal Bond Fund...... 0.10% 0.75% 0.75% -- 0.25% 0.25% 0.25% --
Columbia Oregon Municipal Bond Fund........ 0.10% 0.75% 0.75% -- 0.25% 0.25% 0.25% --
Columbia High Yield Fund................... 0.10% 0.75% 0.75% -- 0.25% 0.25% 0.25% --
(a) The Fund's Board of Directors currently limits payments under the Plan
for Class A shares to 0.25% annually of the Class A average daily net
assets.
(b) The Distributor has contractually agreed to limit a portion of the
Class G distribution and service fees so that combined the fee does exceed
0.95% annually of the Class G shares average daily net assets.
(c) The Distributor has contractually agreed to limit a portion of the
Class G distribution and service fees so that combined the fee does exceed
0.80% annually of the Class G shares average daily net assets.
149
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 4 -- TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONT.)
The Distributor has voluntarily agreed to waive a portion of the Class D
distribution and service fees so that combined these fees do not exceed the
annual rates of average daily net assets as follows:
Columbia Short Term Bond Fund............... 0.40%
Columbia Fixed Income Securities Fund....... 0.85%
Columbia National Municipal Bond Fund....... 0.65%
Columbia Oregon Municipal Bond Fund......... 0.65%
Columbia High Yield Fund.................... 0.85%
The CDSC and the fees received from the Plan are used principally as
repayment to the Distributor for amounts paid by the Distributor to dealers who
sold such shares.
SHAREHOLDER SERVICES PLAN. The Columbia Special Fund and Columbia Short
Term Bond Fund have adopted shareholder services plans that permit them to pay
for certain services provided to Class T shareholders by their financial
advisor. The annual service fee may equal up to 0.50% for Class T shares, but
will not exceed each Fund's net investment income attributable to Class T
shares. The Columbia Special Fund does not intend to pay more than 0.30%
annually for Class T shareholder service fees. The Columbia Short Term Bond Fund
does not intend to pay more than 0.15% annually for Class T shareholder service
fees.
EXPENSE LIMITS. For the six months ended June 30, 2003, and until further
notice, Columbia has contractually agreed to reimburse expenses (excluding any
class specific distribution and service fees, brokerage commissions, interest,
taxes and extraordinary expenses, if any) in excess of 1.65% and 0.65% for the
Columbia Technology Fund and Columbia National Municipal Bond Fund,
respectively.
For the three years commencing November 1, 2000 and ending October 31,
2003, Columbia has contractually agreed to reimburse expenses (excluding any
class specific distribution, service and shareholder service fees, brokerage
commissions, interest, taxes and extraordinary expenses, if any), in excess of
0.75% for the Columbia Short Term Bond Fund. In addition, through May 24, 2004,
Columbia or its affiliate has contractually agreed to reimburse class specific
transfer agency fees to the extent necessary to prevent the total annual
operating expense from exceeding 1.64%, 0.98% and 0.66% for Class G, Class T,
and Class Z shares, respectively, as a result of expenses attributable to the
acquisition of the Galaxy Short-Term Bond Fund by the Columbia Short Term Bond
Fund.
Columbia has contractually agreed to waive a portion of the transfer agent
fees as follows:
Class A Class B Class D Class G Class T Class Z
--------- --------- --------- --------- ---------- ---------
Columbia International Stock Fund....... -- 0.11% 0.75% -- -- 0.12%
Columbia Special Fund................... 0.01% 0.12% 0.09% -- -- 0.05%
Columbia Strategic Value Fund........... -- 0.23% 0.15% -- -- 0.03%
Columbia has agreed to keep the transfer agent agreements in place through
May 2004. Thereafter, these arrangements may be modified or terminated by
Columbia at any time.
150
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
OTHER. The Funds have an agreement with their custodian bank under which
custody fees are reduced by balance credits. The Funds could have invested a
portion of the assets utilized in connection with the expense offset arrangement
in an income-producing asset if they had not entered into such an agreement. The
amounts of custody credits for the six months ended June 30, 2003 are as
follows:
Custody
Name of Fund Credits
- -------------- -----------
Columbia Common Stock Fund.................. $ 1
Columbia Growth Fund........................ 589
Columbia International Stock Fund........... 235
Columbia Special Fund....................... 498
Columbia Small Cap Fund..................... 846
Columbia Real Estate Equity Fund............ 34
Columbia Technology Fund.................... 23
Columbia Strategic Value Fund............... 2,714
Columbia Balanced Fund...................... 1,559
Columbia Short Term Bond Fund............... 2,905
Columbia Fixed Income Securities Fund....... 1,221
Columbia National Municipal Bond Fund....... 47
Columbia Oregon Municipal Bond Fund......... 91
Columbia High Yield Fund.................... 5,397
Columbia Daily Income Company............... 1,293
Directors' fees and expenses were paid directly by each Fund to directors
having no affiliation with the Funds other than in their capacity as directors.
Other officers and directors receive no compensation from the Funds.
The Funds' Independent Directors may participate in a deferred compensation
plan which may be terminated at any time. Obligations of the plan will be paid
solely out of each Fund's assets.
151
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 5 - CAPITAL STOCK ACTIVITY
Columbia Funds
For the Six Months Ended June 30, 2003
REAL
COMMON INTERNATIONAL SMALL ESTATE
STOCK GROWTH STOCK SPECIAL CAP EQUITY
FUND FUND FUND FUND FUND FUND
------------ --------- ------------- ---------- --------- ----------
SHARES:
Class A:
Shares sold................................. 9,966 42,438 139,964 186,053 -- 459,133
Shares issued for
distributions reinvested................... -- -- -- -- -- 2,966
Shares redeemed............................. (68) (16,962) (236,881) (71,106) -- (110,978)
------------ --------- ------------- ---------- --------- ----------
Net increase (decrease).................. 9,898 25,476 (96,917) 114,947 -- 351,121
============ ========= ============= ========== ========= ==========
Class B:
Shares sold................................. 25,823 26,111 74,019 34,035 -- 139,273
Shares issued for
distributions reinvested................... -- -- -- -- -- 868
Shares redeemed............................. (7,327) (4,175) (223,401) (26,851) -- (6,804)
------------ --------- ------------- ---------- --------- ----------
Net increase (decrease).................. 18,496 21,936 (149,382) 7,184 -- 133,337
============ ========= ============= ========== ========= ==========
Class D:
Shares sold................................. 13,018 4,730 55,173 16,654 -- 115,899
Shares issued for
distributions reinvested................... -- -- -- -- -- 776
Shares redeemed............................. (8,470) (1,021) (56,607) (5,593) -- (3,391)
------------ --------- ------------- ---------- --------- ----------
Net increase (decrease).................. 4,548 3,709 (1,434) 11,061 -- 113,284
============ ========= ============= ========== ========= ==========
Class G:
Shares sold................................. -- 3,885 -- 1,091 -- --
Shares redeemed............................. -- (49,469) -- (6,716) -- --
------------ --------- ------------- ---------- --------- ----------
Net decrease............................. -- (45,584) -- (5,625) -- --
============ ========= ============= ========== ========= ==========
Class T:
Shares sold................................. -- -- -- 18,913 -- --
Shares redeemed............................. -- -- -- (92,598) -- --
------------ --------- ------------- ---------- --------- ----------
Net decrease............................. -- -- -- (73,685) -- --
============ ========= ============= ========== ========= ==========
Class Z:
Shares sold................................. 2,616,660 2,676,829 9,239,676 12,130,253 5,583,961 16,163,457
Shares issued for
distributions reinvested................... -- -- -- -- -- 497,388
Shares redeemed............................. (4,624,034) (4,737,482) (4,488,567)(11,961,780)(7,521,152)(18,535,700)
------------ --------- ------------- ---------- --------- ----------
Net increase (decrease).................. (2,007,374) (2,060,653) 4,751,109 168,473 (1,937,191) (1,874,855)
============ ========= ============= ========== ========= ==========
152
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Columbia Funds
For the Six Months Ended June 30, 2003
REAL
COMMON INTERNATIONAL SMALL ESTATE
STOCK GROWTH STOCK SPECIAL CAP EQUITY
FUND FUND FUND FUND FUND FUND
-------------- ------------- ------------- ------------- ----------- --------------
AMOUNTS:
Class A:
Sales................................... $ 153,547 $ 933,411 $ 1,394,170 $ 2,972,799 -- $ 8,571,877
Distributions reinvested................ -- -- -- -- -- 56,728
Redemptions............................. (1,088) (377,463) (2,348,759) (1,183,261) -- (2,104,646)
-------------- ------------- ------------- ------------- ----------- --------------
Net increase (decrease).............. $ 152,459 $ 555,948 $ (954,589) $ 1,789,538 -- $ 6,523,959
============== ============= ============= ============= =========== ==============
Class B:
Sales................................... $ 378,473 $ 582,369 $ 735,024 $ 511,566 -- $ 2,528,829
Distributions reinvested................ -- -- -- -- -- 16,675
Redemptions............................. (107,471) (91,751) (2,219,101) (398,271) -- (126,230)
-------------- ------------- ------------- ------------- ----------- --------------
Net increase (decrease).............. $ 271,002 $ 490,618 $ (1,484,077) $ 113,295 -- $ 2,419,274
============== ============= ============= ============= =========== ==============
Class D:
Sales................................... $ 203,789 $ 100,204 $ 532,531 $ 251,416 -- $ 2,115,488
Distributions reinvested................ -- -- -- -- -- 14,883
Redemptions............................. (135,410) (20,183) (544,845) (87,351) -- (65,655)
-------------- ------------- ------------- ------------- ----------- --------------
Net increase (decrease).............. $ 68,379 $ 80,021 $ (12,314) $ 164,065 -- $ 2,064,716
============== ============= ============= ============= =========== ==============
Class G:
Sales................................... -- $ 83,143 -- $ 16,206 -- --
Redemptions............................. -- (1,060,133) -- (101,822) -- --
-------------- ------------- ------------- ------------- ----------- --------------
Net decrease......................... -- $ (976,990) -- $ (85,616) -- --
============== ============= ============= ============= =========== ==============
Class T:
Sales................................... -- -- -- $ 289,620 -- --
Redemptions............................. -- -- -- (1,396,633) -- --
-------------- ------------- ------------- ------------- ----------- --------------
Net decrease......................... -- . -- -- $ (1,107,013) -- --
============== ============= ============= ============= =========== ==============
Class Z:
Sales................................... $ 39,771,596 $ 58,370,638 $ 92,465,188 $ 184,076,519 $97,168,924 $ 292,399,409
Distributions reinvested................ -- -- -- -- -- 9,407,043
Redemptions............................. (70,087,017) (101,528,465) (44,302,429) (181,372,892)(127,586,272) (335,526,829)
-------------- ------------- ------------- ------------- ----------- --------------
Net increase (decrease).............. $ (30,315,421) $ (43,157,827) $ 48,162,759 $ 2,703,627 $(30,417,348) $ (33,720,377)
============== ============= ============= ============= =========== ==============
Total Capital Share Transactions........ $ (29,823,581) $ (43,008,230) $ 45,711,779 $ 3,577,896 $(30,417,348) $ (22,712,428)
============== ============= ============= ============= =========== ==============
153
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 5 - CAPITAL STOCK ACTIVITY (CONT.)
Columbia Funds
For the Six Months Ended June 30, 2003
SHORT FIXED NATIONAL
STRATEGIC TERM INCOME MUNICIPAL
TECHNOLOGY VALUE BALANCED BOND SECURITIES BOND
FUND FUND FUND FUND FUND FUND
-------------- ------------- ------------- ------------- ----------- --------------
SHARES:
Class A:
Shares sold............................. 126,957 49,589 14,951 3,978,637 554,077 48,508
Shares issued for distributions
reinvested............................. -- -- 155 16,743 2,617 304
Shares redeemed......................... (75,888) (322,727) (1,012) (339,459) (176,897) (19,130)
-------------- ------------- ------------- ------------- ----------- --------------
Net increase (decrease).............. 51,069 (273,138) 14,094 3,655,921 379,797 29,682
============== ============= ============= ============= =========== ==============
Class B:
Shares sold............................. 213,650 40,258 117,690 2,568,981 238,247 55,565
Shares issued for distributions
reinvested............................. -- -- 424 12,132 2,166 228
Shares redeemed......................... (14,433) (25,630) (13,463) (273,390) (33,524) (6,377)
-------------- ------------- ------------- ------------- ----------- --------------
Net increase......................... 199,217 14,628 104,651 2,307,723 206,889 49,416
============== ============= ============= ============= =========== ==============
Class D:
Shares sold............................. 23,278 26,291 21,293 1,557,650 198,896 34,574
Shares issued for distributions
reinvested............................. -- -- 152 11,325 1,061 157
Shares redeemed......................... (21,478) (6,421) (10,933) (186,574) (24,068) (1,195)
-------------- ------------- ------------- ------------- ----------- --------------
Net increase ........................ 1,800 19,870 10,512 1,382,401 175,889 33,536
============== ============= ============= ============= =========== ==============
Class G:
Shares sold............................. -- -- -- 17,364 -- --
Shares issued for distributions
reinvested............................. -- -- -- 1,790 -- --
Shares redeemed......................... -- -- -- (35,374) -- --
-------------- ------------- ------------- ------------- ----------- --------------
Net decrease ........................ -- -- -- (16,220) -- --
============== ============= ============= ============= =========== ==============
Class T:
Shares sold............................. -- -- -- 337,399 -- --
Shares issued for distributions
reinvested............................. -- -- -- 37,926 -- --
Shares redeemed......................... -- -- -- (593,874) -- --
-------------- ------------- ------------- ------------- ----------- --------------
Net decrease ........................ -- -- -- (218,549) -- --
============== ============= ============= ============= =========== ==============
Class Z:
Shares sold............................. 2,913,110 3,714,124 3,063,955 26,917,279 11,119,600 330,034
Shares issued for distributions
reinvested............................. -- -- 379,244 253,702 781,608 26,852
Shares redeemed......................... (2,357,087) (5,962,717) (7,207,084) (13,051,688) (11,799,398) (453,619)
-------------- ------------- ------------- ------------- ----------- --------------
Net increase (decrease).............. 556,023 (2,248,593) (3,763,885) 14,119,293 101,810 (96,733)
============== ============= ============= ============= =========== ==============
154
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Columbia Funds
For the Six Months Ended June 30, 2003
SHORT FIXED NATIONAL
STRATEGIC TERM INCOME MUNICIPAL
TECHNOLOGY VALUE BALANCED BOND SECURITIES BOND
FUND FUND FUND FUND FUND FUND
-------------- ------------- ------------- ------------- ----------- --------------
AMOUNTS:
Class A:
Sales................................... $ 556,328 $ 666,769 $ 266,229 $ 34,701,589 $ 7,573,346 $ 501,230
Distributions reinvested................ -- -- 2,818 146,157 35,918 3,162
Redemptions............................. (332,801) (4,325,337) (18,314) (2,958,223) (2,404,824) (198,882)
-------------- ------------- ------------- ------------- ------------ --------------
Net increase (decrease).............. $ 223,527 $ (3,658,568) $ 250,733 $ 31,889,523 $ 5,204,440 $ 305,510
============== ============= ============= ============= ============ ==============
Class B:
Sales................................... $ 1,042,258 $ 540,558 $ 2,098,715 $ 22,378,912 $ 3,237,071 $ 573,902
Distributions reinvested................ -- -- 7,724 105,880 29,641 2,378
Redemptions............................. (70,345) (347,556) (238,226) (2,384,425) (457,544) (65,809)
-------------- ------------- ------------- ------------- ------------ --------------
Net increase......................... $ 971,913 $ 193,002 $ 1,868,213 $ 20,100,367 $ 2,809,168 $ 510,471
============== ============= ============= ============= ============ ==============
Class D:
Sales................................... $ 115,320 $ 376,660 $ 374,856 $ 13,575,022 $ 2,710,250 $ 356,114
Distributions reinvested................ -- -- 2,764 98,837 14,539 1,635
Redemptions............................. (108,785) (92,118) (191,075) (1,625,318) (331,557) (12,286)
-------------- ------------- ------------- ------------- ------------ --------------
Net increase......................... $ 6,535 $ 284,542 $ 186,545 $ 12,048,541 $ 2,393,232 $ 345,463
============== ============= ============= ============= ============ ==============
Class G:
Sales................................... -- -- -- $ 152,780 -- --
Distributions reinvested................ -- -- -- 15,692 -- --
Redemptions............................. -- -- -- (308,711) -- --
-------------- ------------- ------------- ------------- ------------ --------------
Net decrease......................... -- -- -- $ (140,239) -- --
============== ============= ============= ============= ============ ==============
Class T:
Sales................................... -- -- -- $ 2,964,192 -- --
Distributions reinvested................ -- -- -- 327,519 -- --
Redemptions............................. -- -- -- (5,160,063) -- --
-------------- ------------- ------------- ------------- ------------ --------------
Net decrease ........................ -- -- -- $ (1,868,352) -- --
============== ============= ============= ============= ============ ==============
Class Z:
Sales................................... $ 12,350,260 $ 50,914,672 $ 54,601,781 $ 234,947,981 $151,471,488 $ 3,420,048
Distributions reinvested................ -- -- 6,864,623 2,211,431 10,678,367 278,440
Redemptions............................. (9,993,979) (79,847,271) (127,127,788) (113,668,978)(160,885,973) (4,724,651)
-------------- ------------- ------------- ------------- ------------ --------------
Net increase (decrease).............. $ 2,356,281 $ (28,932,599) $ (65,661,384) $ 123,490,434 $ 1,263,882 $ (1,026,163)
============== ============= ============= ============= ============ ==============
Total Capital Share Transactions........ $ 3,558,256 $ (32,113,623) $ (63,355,893) $ 185,520,274 $ 11,670,722 $ 135,281
============== ============= ============= ============= ============ ==============
155
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 5 -- CAPITAL STOCK ACTIVITY (CONT.)
Columbia Funds
For the Six Months Ended June 30, 2003
OREGON
MUNICIPAL HIGH DAILY
BOND YIELD INCOME
FUND FUND COMPANY
--------------- ------------- -------------
SHARES:
Class A:
Shares sold................................. 84,084 18,849,095 --
Shares issued for distributions reinvested.. 719 273,250 --
Shares redeemed............................. (8,290) (4,785,913) --
--------------- ------------- -------------
Net increase............................. 76,513 14,336,432 --
=============== ============= =============
Class B:
Shares sold................................. 41,769 7,798,585 --
Shares issued for distributions reinvested.. 196 90,982 --
Shares redeemed............................. (1,187) (249,883) --
--------------- ------------- -------------
Net increase............................. 40,778 7,639,684 --
=============== ============= =============
Class D:
Shares sold................................. 44,080 9,584,297 --
Shares issued for distributions reinvested.. 403 108,080 --
Shares redeemed............................. (16,799) (412,288) --
--------------- ------------- -------------
Net increase............................. 27,684 9,280,089 --
=============== ============= =============
Class Z:
Shares sold................................. 8,357,822 75,269,622 353,003,642
Shares issued for distributions reinvested.. 666,582 2,659,317 3,407,264
Shares redeemed............................. (8,324,013) (24,878,667) (593,645,777)
--------------- ------------- -------------
Net increase (decrease) ................. 700,391 53,050,272 (237,234,871)
=============== ============= =============
156
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Columbia Funds
For the Six Months Ended June 30, 2003
OREGON
MUNICIPAL HIGH DAILY
BOND YIELD INCOME
FUND FUND COMPANY
--------------- ------------- -------------
AMOUNTS:
Class A:
Sales....................................... $ 1,066,777 $ 161,100,350 --
Distributions reinvested.................... 9,048 2,350,436 --
Redemptions................................. (103,053) (40,936,071) --
--------------- ------------- -------------
Net increase............................. $ 972,772 $ 122,514,715 --
=============== ============= =============
Class B:
Sales....................................... $ 524,145 $ 66,559,927 --
Distributions reinvested.................... 2,476 782,479 --
Redemptions................................. (15,171) (2,144,359) --
--------------- ------------- -------------
Net increase............................. $ 511,450 $ 65,198,047 --
=============== ============= =============
Class D:
Sales....................................... $ 554,994 $ 81,763,223 --
Distributions reinvested.................... 5,096 929,090 --
Redemptions................................. (216,050) (3,549,388) --
--------------- ------------- -------------
Net increase............................. $ 344,040 $ 79,142,925 --
=============== ============= =============
Class Z:
Sales....................................... $ 104,942,586 $ 643,191,097 $ 353,003,642
Distributions reinvested.................... 8,393,012 22,779,604 3,407,264
Redemptions................................. (104,689,599) (212,892,719) (593,645,777)
--------------- ------------- -------------
Net increase (decrease) ................. $ 8,645,999 $ 453,077,982 $(237,234,871)
=============== ============= =============
Total Capital Share Transactions............ $ 10,474,261 $ 719,933,669 $(237,234,871)
=============== ============= =============
157
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 5 -- CAPITAL STOCK ACTIVITY (CONT.)
Columbia Funds
For the Year Ended December 31, 2002
REAL
COMMON INTERNATIONAL SMALL ESTATE
STOCK GROWTH STOCK SPECIAL CAP EQUITY
FUND (a) FUND (b) FUND (a) FUND (c) FUND FUND (a)
----------- ------------ -------------- ------------- ------------ -------------
SHARES:
CLASS A:
Shares sold....................... 2,138 6,415 103,222 15,672 -- 50,286
Shares issued in
connection with merger........... -- 142,906 2,026,408 68,335 -- --
Shares issued for
distributions reinvested.......... 2 -- -- -- -- 614
Shares redeemed .................. -- (1,651) (120,925) (4,112) -- (41)
----------- ------------ -------------- ------------- ------------ -------------
Net increase.................... 2,140 147,670 2,008,705 79,895 -- 50,859
=========== ============ ============== ============= ============ =============
CLASS B:
Shares sold....................... 7,642 5,492 49,073 7,078 -- 59,855
Shares issued in
connection with merger........... -- -- 1,117,525 230,587 -- --
Shares issued for
distributions reinvested......... 25 -- -- -- -- 426
Shares redeemed................... (328) -- (76,334) (8,494) -- (27)
----------- ------------ -------------- ------------- ------------ -------------
Net increase.................... 7,339 5,492 1,090,264 229,171 -- 60,254
=========== ============ ============== ============= ============ =============
CLASS D:
Shares sold....................... 2,972 4,966 16,230 11,403 -- 20,247
Shares issued in
connection with merger........... -- -- 56,019 18,373 -- --
Shares issued for
distributions reinvested ........ 7 -- -- -- -- 234
Shares redeemed .................. (968) -- (18,196) (431) -- --
----------- ------------ -------------- ------------- ------------ -------------
Net increase .................... 2,011 4,966 54,053 29,345 -- 20,481
=========== ============ ============== ============= ============ =============
CLASS G:
Shares sold ....................... -- 780 -- 222 -- --
Shares issued in
connection with merger........... -- 668,443 -- 51,696 -- --
Shares redeemed................... -- (11,143) -- (913) -- --
----------- ------------ -------------- ------------- ------------ -------------
Net increase .................... -- 658,080 -- 51,005 -- --
=========== ============ ============== ============= ============ =============
CLASS T:
Shares sold ....................... -- -- -- 1,181 -- --
Shares issued in
connection with merger........... -- -- -- 1,766,763 -- --
Shares redeemed .................. -- -- -- (12,506) -- --
----------- ------------ -------------- ------------- ------------ -------------
N et increase -- -- -- 1,755,438 -- --
=========== ============ ============== ============= ============ =============
CLASS Z:
Shares sold....................... 624,871 6,673,385 14,151,430 23,256,300 19,739,178 33,091,005
Shares issued in
connection with merger........... -- 4,131,819 1,426,094 16,875,517 -- --
Shares issued for
distributions reinvested........ 153,392 100 48,107 -- -- 1,648,657
Shares redeemed.................. (13,944,732) (14,167,826) (12,634,316) (25,658,966) (17,331,161) (25,701,989)
----------- ------------ -------------- ------------- ------------ -------------
Net increase (decrease) ......... (6,166,469) (3,362,522) 2,991,315 14,472,851 2,408,017 9,037,673
=========== ============ ============== ============= ============ =============
158
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Columbia Funds
For the Year Ended December 31, 2002
REAL
COMMON INTERNATIONAL SMALL ESTATE
STOCK GROWTH STOCK SPECIAL CAP EQUITY
FUND (a) FUND (b) FUND (c) FUND (d) FUND FUND (a)
------------- ------------- -------------- ------------- ------------ -------------
AMOUNTS:
CLASS A:
Sales.............................. $ 31,961 $ 135,724 $ 1,040,525 $ 237,394 -- $ 889,637
Proceeds received in
connection with merger............ -- 3,133,045 20,243,813 1,049,181 -- --
Distributions reinvested........... 24 -- -- -- -- 10,830
Redemptions........................ -- (35,026) (1,215,758) (61,507) -- (701)
------------- ------------- -------------- ------------- ------------ -------------
Net increase..................... $ 31,985 $ 3,233,743 $ 20,068,580 $ 1,225,068 -- $ 899,766
============= ============= ============== ============= ============ =============
CLASS B:
Sales.............................. $ 117,918 $ 119,511 $ 492,261 $ 106,916 -- $ 1,057,426
Proceeds received in
connection with merger............ -- -- 11,164,070 3,540,022 -- --
Distributions reinvested........... 365 -- -- -- -- 7,526
Redemptions........................ (5,120) -- (768,135) (127,352) -- (486)
------------- ------------- -------------- ------------- ------------ -------------
Net increase...................... $ 113,163 $ 119,511 $ 10,888,196 $ 3,519,586 -- $ 1,064,466
============= ============= ============== ============= ============ =============
CLASS D:
Sales.............................. $ 46,518 $ 105,516 $ 162,310 $ 172,855 -- $ 355,423
Proceeds received in
connection with merger............ -- -- 559,632 282,040 -- --
Distributions reinvested........... 105 -- -- -- -- 4,139
Redemptions........................ (14,682) -- (181,537) (6,374) -- --
------------- ------------- -------------- ------------- ------------ -------------
Net increase...................... $ 31,941 $ 105,516 $ 540,405 $ 448,521 -- $ 359,562
============= ============= ============== ============= ============ =============
CLASS G:
Sales.............................. -- $ 16,449 -- $ 3,363 -- --
Proceeds received in
connection with merger............ -- 14,636,657 -- 794,054 -- --
Redemptions........................ -- (235,662) -- (13,602) -- --
------------- ------------- -------------- ------------- ------------ -------------
Net increase...................... -- $ 14,417,444 -- $ 783,815 -- --
============= ============= ============== ============= ============ =============
CLASS T:
Sales.............................. -- -- -- $ 17,735 -- --
Proceeds received in
connection with merger............ -- -- -- 27,163,275 -- --
Redemptions........................ -- -- -- (187,071) -- --
------------- ------------- -------------- ------------- ------------ -------------
Net increase...................... -- -- -- $ 26,993,939 -- --
============= ============= ============== ============= ============ =============
CLASS Z:
Sales.............................. $ 129,705,574* $ 165,334,435 $ 150,103,257 $ 377,870,023 $396,004,404 $ 607,721,107
Proceeds received in
connection with merger............ -- 90,545,496 14,246,687 259,343,536 -- --
Distributions reinvested........... 2,267,130 2,235 478,672 -- -- 30,201,439
Redemptions........................ (232,525,563) (346,428,134) (134,815,113) (417,250,145) (327,998,840) (466,134,043)
------------- ------------- -------------- ------------- ------------ -------------
Net increase (decrease)........... $(100,552,859) $ (90,545,968) $ 30,013,503 $ 219,963,414 $ 68,005,564 $ 171,788,503
============= ============= ============== ============= ============ =============
Total Capital Share Transactions.... $(100,375,770) $ (72,669,754) $ 61,510,684 $ 252,934,343 $ 68,005,564 $ 174,112,297
============= ============= ============== ============= ============ =============
* Includes $4,174 of securities received in an in-kind transfer.
159
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 5 -- CAPITAL STOCK ACTIVITY (CONT.)
Columbia Funds
For the Year Ended December 31, 2002
SHORT FIXED NATIONAL
STRATEGIC TERM INCOME MUNICIPAL
TECHNOLOGY VALUE BALANCED BOND SECURITIES BOND
FUND (a) FUND (a) FUND (a) FUND (c) FUND (a) FUND (a)
---------- ----------- ----------- ----------- ----------- -----------
SHARES:
CLASS A:
Shares sold................................ 266 16,466 8,288 648,705 69,868 6,496
Shares issued in connection with merger.... -- 4,196,653 -- -- -- --
Shares issued for distributions reinvested. -- -- 38 712 19 41
Shares redeemed............................ -- (135,115) (1) (10,279) -- --
---------- ----------- ----------- ----------- ----------- -----------
Net increase............................ 266 4,078,004 8,325 639,138 69,887 6,537
========== =========== =========== =========== =========== ===========
CLASS B:
Shares sold................................ 1,777 23,766 34,842 724,659 108,490 21,761
Shares issued in connection with merger.... -- 163,845 -- -- -- --
Shares issued for distributions reinvested -- -- 118 571 148 89
Shares redeemed............................ -- (8,208) (285) (3,436) (257) (14,822)
---------- ----------- ----------- ----------- ----------- -----------
Net increase............................ 1,777 179,403 34,675 721,794 108,381 7,028
========== =========== =========== =========== =========== ===========
CLASS D:
Shares sold................................ 263 1,170 25,391 630,014 31,506 8,119
Shares issued in connection with merger.... -- 27,645 -- -- -- --
Shares issued for distributions reinvested. -- -- 100 1,027 38 32
Shares redeemed............................ -- (1,702) -- (28,832) -- (3,292)
---------- ----------- ----------- ----------- ----------- -----------
Net increase............................ 263 27,113 25,491 602,209 31,544 4,859
========== =========== =========== =========== =========== ===========
CLASS G:
Shares sold................................ -- -- -- 8,127 -- --
Shares issued in connection with merger.... -- -- -- 208,508 -- --
Shares issued for distributions reinvested. -- -- -- 235 -- --
Shares redeemed............................ -- -- -- (730) -- --
---------- ----------- ----------- ----------- ----------- -----------
Net increase............................ -- -- -- 216,140 -- --
========== =========== =========== =========== =========== ===========
CLASS T:
Shares sold................................ -- -- -- 63,115 -- --
Shares issued in connection with merger.... -- -- -- 3,594,178 -- --
Shares issued for distributions reinvested. -- -- -- 5,002 -- --
Shares redeemed............................ -- -- -- (104,000) -- --
---------- ----------- ----------- ----------- ----------- -----------
Net increase............................ -- -- -- 3,558,295 -- --
========== =========== =========== =========== =========== ===========
CLASS Z:
Shares sold................................ 2,055,133 24,026,235 6,801,092 16,131,131 22,424,154 1,109,593
Shares issued in connection with merger.... -- 180,824 -- 22,121,411 -- --
Shares issued for distributions reinvested. -- 171,442 1,137,024 426,395 1,948,592 64,411
Shares redeemed............................ (1,621,025) (18,027,370) (17,367,916) (9,419,905) (19,120,878) (981,956)
---------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) 434,108 6,351,131 (9,429,800) 29,259,032 5,251,868 192,048
========== =========== =========== =========== =========== ===========
160
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Columbia Funds
For the Year Ended December 31, 2002
SHORT FIXED NATIONAL
STRATEGIC TERM INCOME MUNICIPAL
TECHNOLOGY VALUE BALANCED BOND SECURITIES BOND
FUND (a) FUND (a) FUND (a) FUND (c) FUND (a) FUND (a)
------------ ------------ ------------- ------------ ------------ ------------
AMOUNTS:
CLASS A:
Sales $ 1,013 $ 220,586 $ 147,819 $ 5,597,578 $ 939,670 $ 66,135
Proceeds received in
connection with merger............ -- 54,514,520 -- -- -- --
Distributions reinvested .......... -- -- 668 6,168 252 425
Redemptions ....................... -- (1,789,207) (20) (88,636) -- --
------------ ------------ ------------- ------------ ------------- ------------
Net increase ................... $ 1,013 $ 52,945,899 $ 148,467 $ 5,515,110 $ 939,922 $ 66,560
============ ============ ============= ============ ============= ============
CLASS B:
Sales ............................. $ 6,709 $ 316,907 $ 622,186 $ 6,252,006 $ 1,456,255 $ 222,588
Proceeds received in
connection with merger............ -- 2,128,341 -- -- -- --
Distributions reinvested........... -- -- 2,064 4,943 1,998 906
Redemptions........................ -- (108,351) (5,115) (29,668) (3,454) (150,595)
------------ ------------ ------------- ------------ ------------ ------------
Net increase ................... $ 6,709 $ 2,336,897 $ 619,135 $ 6,227,281 $ 1,454,799 $ 72,899
============ ============ ============= ============ ============= ============
CLASS D:
Sales ............................. $ 1,000 $ 15,708 $ 456,181 $ 5,435,948 $ 421,439 $ 83,038
Proceeds received in
connection with merger............. -- 359,105 -- -- -- --
Distributions reinvested........... -- -- 1,738 8,883 510 322
Redemptions ....................... -- (22,407) -- (248,791) -- (33,443)
------------ ------------ ------------- ------------ ------------- ------------
Net increase.................... $ 1,000 $ 352,406 $ 457,919 $ 5,196,040 $ 421,949 $ 49,917
============ ============ ============= ============ ============= ============
CLASS G:
Sales ............................. -- -- -- $ 69,466 -- --
Proceeds received in
connection with merger............ -- -- -- 1,797,110 -- --
Distributions reinvested .......... -- -- -- 2,041 -- --
Redemptions ....................... -- -- -- (6,301) -- --
------------ ------------ ------------- ------------ ------------- ------------
Net increase.................... -- -- -- $ 1,862,316 -- --
============ ============ ============= ============ ============= ============
CLASS T:
Sales.............................. -- -- -- $ 544,886 -- --
Proceeds received in
connection with merger............ -- -- -- 30,982,225 -- --
Distributions reinvested .......... -- -- -- 43,369 -- --
Redemptions ....................... -- -- -- (898,480) -- --
------------ ------------ ------------- ------------ ------------- ------------
Net increase.................... -- -- -- $ 30,672,000 -- --
============ ============ ============= ============ ============= ============
CLASS Z:
Sales ............................. $ 10,220,887 $352,586,497 $ 129,567,321 $138,763,864 $299,097,456 $ 11,268,258
Proceeds received in
connection with merger............ -- 2,348,913 -- 190,685,846 -- --
Distributions reinvested........... -- 2,187,604 20,929,510 3,668,146 25,971,318 649,959
Redemptions........................ (7,491,197) (244,650,805) (325,499,332) (80,968,926) (254,637,100) (9,873,648)
------------ ------------ ------------- ------------ ------------- ------------
Net increase (decrease)......... $ 2,729,690 $112,472,209 $(175,002,501) $252,148,930 $ 70,431,674 $ 2,044,569
============ ============ ============= ============ ============= ============
Total Capital Share Transactions . $ 2,738,412 $168,107,411 $(173,776,980) $301,621,677 $ 73,248,344 $ 2,233,945
============ ============ ============= ============ ============= ============
161
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 5 -- CAPITAL STOCK ACTIVITY (CONT.)
Columbia Funds
For the Year Ended December 31, 2002
OREGON
MUNICIPAL HIGH DAILY
BOND YIELD INCOME
FUND (a) FUND (a) COMPANY
------------- ------------- -------------
SHARES:
Class A:
Shares sold......................................... 37,901 4,382,301 --
Shares issued for distributions reinvested.......... 236 10,597 --
Shares redeemed..................................... -- (329,642) --
------------- ------------- -------------
Net increase..................................... 38,137 4,063,256 --
============= ============= =============
Class B:
Shares sold......................................... 33,682 2,007,189 --
Shares issued for distributions reinvested.......... 170 3,910 --
Shares redeemed..................................... (3,990) (14,669) --
------------- ------------- -------------
Net increase..................................... 29,862 1,996,430 --
============= ============= =============
Class D:
Shares sold......................................... 37,686 2,151,932 --
Shares issued for distributions reinvested.......... 109 4,089 --
Shares redeemed..................................... (1,979) (154) --
------------- ------------- -------------
Net increase..................................... 35,816 2,155,867 --
============= ============= =============
Class Z:
Shares sold......................................... 13,500,076 89,490,322 1,214,530,352
Shares issued for distributions reinvested.......... 1,896,736 3,386,949 14,408,323
Shares redeemed..................................... (15,383,205) (35,810,741) (1,346,398,974)
------------- ------------- -------------
Net increase (decrease).......................... 13,607 57,066,530 (117,460,299)
============= ============= =============
162
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Columbia Funds
For the Year Ended December 31, 2002
OREGON
MUNICIPAL HIGH DAILY
BOND YIELD INCOME
FUND (a) FUND (a) COMPANY
------------- ------------- -------------
AMOUNTS:
Class A:
Sales............................................... $ 471,456 $ 36,558,214 --
Distributions reinvested............................ 2,929 88,687 --
Redemptions......................................... -- (2,758,792) --
------------- ------------- -------------
Net increase..................................... $ 474,385 $ 33,888,109 --
============= ============= =============
Class B:
Sales............................................... $ 419,900 $ 16,716,021 --
Distributions reinvested............................ 2,114 32,718 --
Redemptions......................................... (49,521) (122,617) --
------------- ------------- -------------
Net increase..................................... $ 372,493 $ 16,626,122 --
============= ============= =============
Class D:
Sales............................................... $ 472,508 $ 17,940,183 --
Distributions reinvested............................ 1,356 34,217 --
Redemptions......................................... (24,640) (1,285) --
------------- ------------- -------------
Net increase..................................... $ 449,224 $ 17,973,115 --
============= ============= =============
Class Z:
Sales............................................... $ 167,348,905 $ 756,219,396 $1,214,530,352
Distributions reinvested............................ 23,528,226 28,634,236 14,408,323
Redemptions......................................... (190,394,095) (301,863,222) (1,346,398,974)
------------- ------------- -------------
Net increase (decrease).......................... $ 483,036 $ 482,990,410 $ (117,460,299)
============= ============= =============
Total Capital Share Transactions.................... $ 1,779,138 $ 551,477,756 $ (117,460,299)
============= ============= =============
(a) Effective November 1, 2002, the Fund began offering four classes of shares:
Class A, Class B, Class D and Class Z shares. Prior to November 1, 2002, the
Fund was single class which was subsequently named Class Z shares.
(b) Effective November 1, 2002, the Fund began offering five classes of shares:
Class A, Class B, Class D, Class G and Class Z shares. Prior to November 1,
2002, the Fund was single class which was subsequently named Class Z shares.
(c) Effective November 1, 2002, the Fund began offering six classes of shares:
Class A, Class B, Class D, Class G, Class T and Class Z shares. Prior to
November 1, 2002, the Fund was single class which was subsequently named
Class Z shares.
163
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164
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165
[EAGLE HEAD LOGO]
ColumbiaFunds
Advised by Columbia Advisors, Inc.
DIRECTORS DISTRIBUTOR
--------- -----------
JAMES C. GEORGE LIBERTY FUNDS DISTRIBUTOR, INC.
PATRICK J. SIMPSON ONE FINANCIAL CENTER
RICHARD L. WOOLWORTH BOSTON, MASSACHUSETTS 02111-2621
CHARLES R. NELSON
INVESTMENT ADVISOR LEGAL COUNSEL
------------------ ------------------
COLUMBIA MANAGEMENT ADVISORS, INC. STOEL RIVES LLP
1300 S.W. SIXTH AVENUE 900 S.W. FIFTH AVENUE, SUITE 2300
PORTLAND, OREGON 97201 PORTLAND, OREGON 97204-1268
TRANSFER AGENT
--------------
LIBERTY FUNDS SERVICES, INC.
P.O. BOX 8081
BOSTON, MASSACHUSETTS 02266-8081
This information must be preceded or accompanied by a current prospectus.
Please read it carefully before investing.The managers' views contained in
this report are subject to change at any time, based on market and other
considerations. Portfolio changes should not be considered recommendations for
action by individual investors.
Funds distributed by Liberty Funds Distributor, Inc.
Mutual fund shares are not insured by the FDIC or any other governmental entity;
are not deposits or other obligations of, or guaranteed by, any bank; and
involve risks, including loss of principal.
COL-03/627O-0603 (08/03) 03/2236
-------------
PRSRT STD
U.S. Postage
PAID
Holliston, MA
Permit NO. 20
-------------
ITEM 2. CODE OF ETHICS.
Not applicable at this time.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable at this time.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not applicable at this time.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable at this time.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not applicable at this time.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) The Registrant's Chief Executive Officer and Chief Financial Officer, based
on their evaluation of the Registrant's disclosure controls and procedures as of
a date within 90 days of the filing date 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 its reports that it files or
submits under the Securities Exchange Act of 1934, as amended, is accumulated
and communicated to the Registrant's management, including the Chief Executive
Officer and Chief 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 over the registrant's last fiscal half-year that has
affected, or is reasonably likely to materially affect, the registrant's
internal control over financial reporting.
ITEM 10. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable at
this time.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the Investment Company Act of 1940 (17 CFR 270.30a-2(a)). Attached hereto as
Exhibit 99.CERT.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by 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 Growth Fund, Inc.
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By (Signature and Title) /s/ Jeff B. Curtis
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Jeff B. Curtis, President
Date September 8, 2003
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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/ Jeff B. Curtis
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Jeff B. Curtis, President
Date September 8, 2003
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By (Signature and Title) /s/ J. Kevin Connaughton
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J. Kevin Connaughton, Chief Financial Officer
Date September 8, 2003
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