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 811-08256
---------------------
Columbia Real Estate Equity Fund, Inc.
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
One Financial Center, Boston, Massachusetts 02111
- ------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Vincent Pietropaolo, Esq.
Columbia Management Group, Inc.
One Financial Center
Boston, MA 02111
- ------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: 1-617-772-3698
-------------------
Date of fiscal year end: August 31, 2003
------------------
Date of reporting period: August 31, 2003
-----------------
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
Annual Report
August 31, 2003
COLUMBIA COMMON STOCK FUND
COLUMBIA GROWTH FUND
COLUMBIA INTERNATIONAL STOCK FUND
COLUMBIA MID CAP GROWTH FUND
COLUMBIA SMALL CAP GROWTH FUND
COLUMBIA REAL ESTATE EQUITY FUND
COLUMBIA TECHNOLOGY FUND
COLUMBIA STRATEGIC INVESTOR 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
NOT FDIC MAY LOSE VALUE
INSURED NO BANK GUARANTEE
Photo of Women standing
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
COLUMBIA FUNDS ANNUAL REPORT
AUGUST 31, 2003
INTRODUCTION 1 TO OUR SHAREHOLDERS
- --------------------------------------------------------------------------------
INVESTMENT 4 COLUMBIA COMMON STOCK FUND
REVIEWS 6 COLUMBIA GROWTH FUND
8 COLUMBIA INTERNATIONAL STOCK FUND
10 COLUMBIA MID CAP GROWTH FUND
12 COLUMBIA SMALL CAP GROWTH FUND
14 COLUMBIA REAL ESTATE EQUITY FUND
16 COLUMBIA TECHNOLOGY FUND
18 COLUMBIA STRATEGIC INVESTOR 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
- --------------------------------------------------------------------------------
FINANCIAL 33 FINANCIAL HIGHLIGHTS
INFORMATION 78 SCHEDULES OF INVESTMENTS
132 STATEMENTS OF ASSETS AND LIABILITIES
136 STATEMENTS OF OPERATIONS
144 STATEMENTS OF CHANGES IN NET ASSETS
150 NOTES TO FINANCIAL STATEMENTS
177 REPORT OF INDEPENDENT AUDITORS
178 UNAUDITED INFORMATION
179 OFFICERS AND DIRECTORS
COLUMBIA FUNDS
COLUMBIA FINANCIAL CENTER
1301 SW FIFTH AVENUE
PORTLAND, OR 97201-5601
1-800-345-6611
COLUMBIAFUNDS.COM
TO OUR SHAREHOLDERS
- --------------------------------------------------------------------------------
The Board of Directors for Columbia Funds recently approved the change of the
funds' fiscal year end from December 31 to August 31. As a result, this report
covers the eight-month period since the last annual report. The next report you
receive will be a report for the six-month period through February 2004.
We also want to take this opportunity to announce several other changes of
interest to you. As you may already know, our funds are part of a larger
investment organization--Columbia Management Group (CMG). CMG was formed in
2001, shortly after FleetBoston purchased the asset management companies of
Liberty Financial. Since that time, our efforts have been focused on
streamlining our organization and strengthening certain key functions, such as
investment research. As part of our effort to create a consistent identity, six
of the asset management firms under the CMG umbrella, including Columbia
Management Company, were consolidated last April and renamed Columbia Management
Advisors, Inc. As of October 13, 2003, most of the funds managed by Columbia
Management Advisors, Inc. including CMG's Liberty Funds, will have been renamed
Columbia. Also, as of October 13, 2003, the Columbia Special Fund, Columbia
Small Cap Fund and Columbia Strategic Value Fund were renamed Columbia Mid Cap
Growth Fund, Columbia Small Cap Growth Fund and Columbia Strategic Investor
Fund, respectively. In addition, our new website address is one that may be
familiar to you: www.columbiafunds.com. For complete information about these and
other changes that took effect on October 13, 2003, please visit us online at
www.columbiafunds.com. You can also speak to a shareholder representative at
800-345-6611. Please make note of our new phone number.
Also in October, shareholders of the Columbia Funds elected the current
directors of Liberty Funds, as well as incumbent directors, Messrs. Nelson,
Simpson and Woolworth, to their boards. This action will allow the funds to
develop uniform policies and procedures. In addition, Joseph R. Palombo, who was
already president of CMG's Liberty Funds, was named president of Columbia Funds.
Joe has 19 years of experience in the financial services industry; and prior to
joining Columbia Management, he was chief operating officer and chief compliance
officer for Putnam Mutual Funds. Joe is responsible for CMG's transfer agent and
fund administration activities. He is also executive vice president and chief
operating officer of Columbia Management Advisors, Inc.
These changes will not affect our commitment to you, our shareholders. We
will continue to provide the best possible customer service and to offer a wide
variety of investment products. As always, we are here to help you achieve your
long-term financial goals.
In the following pages, you will find detailed financial information, as
well as a discussion of investment activity and management strategy, for 15
Columbia funds. But first, here is a review of the market and economic
environment in which the funds performed.
1
TO OUR SHAREHOLDERS
- --------------------------------------------------------------------------------
A REVIEW OF THE ECONOMY AND THE MARKETS
THE ECONOMY STRENGTHENS AND STOCK MARKETS RALLY
This eight-month reporting period began under a cloud of uncertainty about
impending war with Iraq and a struggling economy. However, progress on both
fronts encouraged investors back into the financial markets, and most major
segments of the stock and bond markets posted gains for the period. A relatively
swift end to the major conflicts of the war shifted attention to the economy,
which continued to report good news throughout the summer. Gross domestic
product (GDP) for the second quarter of 2003 was reported at 3.1%, then revised
upward to 3.3%. Retailers were busy. Housing starts jumped. Industrial
production picked up. Businesses showed signs of loosening their purse-strings,
as outlays for new equipment rose 8.2% in the second quarter. Employment
remained the only hold-out. Although the jobless rate edged lower--from 6.2% to
6.1%--it was largely the result of a shrinking labor force. Employers continued
to cut jobs, to the surprise of most economists.
Global economies were mixed during the period. In Europe, expectations that
lower interest rates would spur an economic recovery have yet to be realized,
but business executives are increasingly optimistic about the second half of
2003. Economic growth in Japan was modest but surprisingly steady while in
emerging Asian markets, the pace of growth was slowed by the effects of SARS
(severe acute respiratory syndrome).
EQUITY MARKETS CONTINUE TO CLIMB
After a weak first quarter, major US stock market indices hit a 14-month high in
August. Stronger-than-expected earnings and an upbeat American consumer helped
sustain the climb. Investors shifted away from defensive sectors, which did well
early in the period, to sectors that were expected to benefit from a stronger
economy. The S&P 500's information technology group was up more than 30% through
August, compared to a 15.95% gain for the broader index. Consumer discretionary
stocks were also strong. Real estate investments turned in their best
performance since 2000. The NAREIT Index returned 20.61%. Small-cap stocks led
large-cap stocks, and growth stocks outperformed value. International equity
markets rebounded, but in Europe they generally lagged the US market. The
Japanese stock market staged a surprising turnaround. The Nikkei Index, a broad
measure of Japanese stock performance, gained 20.57% during the reporting
period.
2
TO OUR SHAREHOLDERS
- --------------------------------------------------------------------------------
BONDS LOSE THEIR LUSTER
The bond market's modest gains for the year through August were the result
of a sharp downturn in the final months of the reporting period. The yield on
the 10-year Treasury note, a bellwether for bonds, plummeted to 3.19% in June--a
45-year low--but then rose more than one full percentage point in July, bringing
Treasury bond prices down sharply. High-yield and investment-grade corporate
bonds, which were helped by an improving economy early in the period, held up
better than Treasuries when interest rates began to rise. Mortgage bonds were
lackluster as a flurry of mortgage prepayment activity hurt mortgage bond
prices. Municipal bonds came under pressure as state and local governments
grappled with declining revenues. Short-term interest rates remained at a
45-year low, which kept money market fund yields below 1.0%.
KEEPING A LONG-TERM PERSPECTIVE
While we are all pleased about the positive returns generated during the
eight-month period covered by this report, it is also important to remember that
a long-term perspective makes it easier to benefit from strong market moves in
any asset class. If you found yourself sitting on the sidelines of this stock
market rally, it may be time to develop an asset allocation plan you can live
with in any environment. If you need guidance in developing a plan, consider
talking with a financial advisor before you make a significant change in your
portfolio.
Sincerely,
/s/ Joseph R. Palombo /s/ Jeff B. Curtis
Joseph R. Palombo Jeff B. Curtis
Executive Vice President and Executive Vice President and
Chief Operating Officer Chief Operations Officer--West Coast
Columbia Management Advisors, Inc. Columbia Management Advisors, Inc.
Economic and market conditions change frequently. There is no assurance that the
trends described in this report will continue or commence.
3
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
COLUMBIA COMMON STOCK FUND
The Board of Directors for Columbia Common Stock Fund approved the change of the
fund's fiscal year end from December 31 to August 31. As a result, this report
covers the eight-month period since the last annual report. The next report you
receive will cover the six-month period through February 2004.
For the eight months ended August 31, 2003, Columbia Common Stock Fund class A
shares returned 15.49% without sales charge. This was slightly less than the
S&P 500 Index, which returned 15.95% over the same period. The fund's
performance surpassed the average return of its peer group, the Lipper Large Cap
Core Category, which was 14.62%. 1 Strong stock selection in consumer
discretionary and finance helped performance relative to the peer group. In
addition, the fund's overweight in the consumer discretionary sector and
underweight in the consumer staples sector benefited returns.
STOCKS DECLINED EARLY IN PERIOD, SOARED IN SECOND HALF
In the first three months of 2003, the sluggish stock market reflected investor
fears of impending war in Iraq, rising unemployment and generally weak economic
growth. During this period, we built up our positions in out-of-favor cyclical
stocks, particularly in the travel sector. The fund benefited from increased
exposure to the travel and leisure industries through investments in Carnival,
which we later sold at a profit, as well as Royal Caribbean Cruises and Hilton
Hotels (1.1% and 0.6% of net assets, respectively). 2 We also added shares of
Target and Dollar General in the retail area (1.6% and 0.9% of net assets,
respectively) as well as Home Depot, which is no longer in the portfolio.
In the last five months of the period, 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. Home mortgage and US
Treasury rates reached 45-year lows, and prospects of lower tax rates on income
and dividends added to the positive mood. Stocks rallied, and we took profits on
some of the cyclical and retail stocks we had purchased earlier in the period.
STRONG RETURNS FROM FINANCIALS, TECHNOLOGY
Financial stocks performed well during the period and our emphasis in that
sector helped performance. Our investments in J.P. Morgan Chase, Citigroup,
Merrill Lynch and American Express (0.5%, 4.9%, 1.0% and 2.0% of net assets,
respectively) did well. All four companies posted gains as the economy
strengthened over the summer. We made a strategic decision to increase our
exposure to technology throughout the period, with an emphasis on mid cap rather
than the largest semiconductor companies. Our selection of Silicon Laboratories,
VERITAS Software and National Semiconductor (0.8%, 0.7% and 0.7% of net assets,
respectively) helped performance when these companies' returns outpaced those of
their large cap counterparts. Strong stock selection in the technology sector
helped performance as tech stocks rallied during the summer.
The fund remained sharply underweight in both the more defensive consumer
staples and utilities sectors. With the prospect of improved economic growth, we
believe there are better opportunities elsewhere.
PERFORMANCE OF A $10,000 INVESTMENT
8/31/93 - 8/31/03
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
Class A $ 22,132 $ 20,856
Class B 21,975 21,975
Class D 21,962 21,743
Class Z 22,200 n/a
----------------------------------------------------
GROWTH OF $10,000
OVER 10 YEARS
(MOUNTAIN CHART)
CLASS A SHARES CLASS A SHARES WITH
WITHOUT SALES CHARGE SALES CHARGE S&P 500 INDEX
-------------------- ------------ -------------
08/31/93 $10000.00 $ 9425.00 $10000.00
10069.00 9490.00 9923.00
10177.00 9592.00 10128.00
10019.00 9443.00 10032.00
10246.00 9657.00 10154.00
10574.00 9966.00 10499.00
10380.00 9783.00 10213.00
9984.00 9410.00 9768.00
10132.00 9549.00 9893.00
10327.00 9733.00 10055.00
9984.00 9410.00 9809.00
10382.00 9785.00 10131.00
10706.00 10090.00 10546.00
10443.00 9842.00 10288.00
10497.00 9893.00 10519.00
10239.00 9650.00 10136.00
10456.00 9855.00 10286.00
10546.00 9939.00 10553.00
10980.00 10349.00 10964.00
11207.00 10563.00 11288.00
11332.00 10680.00 11619.00
11699.00 11026.00 12084.00
11872.00 11190.00 12365.00
12325.00 11616.00 12775.00
12435.00 11720.00 12807.00
12866.00 12126.00 13347.00
12684.00 11955.00 13299.00
13256.00 12494.00 13883.00
13679.00 12893.00 14151.00
13936.00 13135.00 14632.00
14150.00 13336.00 14768.00
14444.00 13613.00 14910.00
14643.00 13801.00 15129.00
14945.00 14086.00 15520.00
15041.00 14176.00 15579.00
14338.00 13514.00 14890.00
14922.00 14064.00 15204.00
15507.00 14615.00 16060.00
15558.00 14663.00 16504.00
16611.00 15656.00 17751.00
16510.00 15560.00 17400.00
17058.00 16077.00 18487.00
17220.00 16230.00 18631.00
16969.00 15993.00 17866.00
17442.00 16439.00 18932.00
18457.00 17396.00 20085.00
19214.00 18109.00 20985.00
20586.00 19402.00 22655.00
19983.00 18834.00 21387.00
20836.00 19638.00 22559.00
20048.00 18895.00 21805.00
20359.00 19188.00 22815.00
20697.00 19507.00 23207.00
20819.00 19622.00 23465.00
21993.00 20729.00 25157.00
23036.00 21711.00 26445.00
23054.00 21728.00 26712.00
22602.00 21303.00 26252.00
23940.00 22564.00 27318.00
23667.00 22306.00 27029.00
20150.00 18992.00 23120.00
21196.00 19977.00 24602.00
22481.00 21188.00 26602.00
23888.00 22514.00 28215.00
26136.00 24633.00 29840.00
27335.00 25764.00 31087.00
26649.00 25117.00 30120.00
28054.00 26441.00 31325.00
28494.00 26856.00 32537.00
27733.00 26139.00 31769.00
29727.00 28018.00 33533.00
28815.00 27158.00 32486.00
28290.00 26664.00 32327.00
27764.00 26168.00 31441.00
29416.00 27725.00 33432.00
30466.00 28715.00 34110.00
32870.00 30980.00 36119.00
31618.00 29800.00 34306.00
32892.00 31001.00 33658.00
36280.00 34194.00 36950.00
35144.00 33123.00 35837.00
33644.00 31709.00 35103.00
35158.00 33136.00 35970.00
34736.00 32738.00 35409.00
36886.00 34765.00 37608.00
34123.00 32161.00 35622.00
33041.00 31141.00 35472.00
30401.00 28653.00 32677.00
30988.00 29206.00 32837.00
31574.00 29758.00 34003.00
28148.00 26530.00 30902.00
26352.00 24837.00 28943.00
28402.00 26769.00 31192.00
28530.00 26890.00 31400.00
27754.00 26158.00 30637.00
27207.00 25643.00 30337.00
25349.00 23892.00 28438.00
22918.00 21600.00 26140.00
23351.00 22009.00 26640.00
25184.00 23736.00 28683.00
25537.00 24069.00 28935.00
24847.00 23419.00 28513.00
24336.00 22936.00 27962.00
25153.00 23707.00 29014.00
23466.00 22116.00 27256.00
23491.00 22141.00 27054.00
21727.00 20478.00 25128.00
19720.00 18586.00 23170.00
19925.00 18779.00 23321.00
17827.00 16802.00 20786.00
19297.00 18188.00 22615.00
20577.00 19394.00 23947.00
19161.00 18059.00 22541.00
18724.00 17647.00 21951.00
18352.00 17296.00 21622.00
18454.00 17393.00 21831.00
19920.00 18774.00 23630.00
20832.00 19634.00 24875.00
21051.00 19840.00 25194.00
21448.00 20215.00 25637.00
08/31/03 22132.00 20856.00 26130.00
MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT COLUMBIAFUNDS.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 August 31, 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, indexes
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.
4
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
OPTIMISTIC OUTLOOK
We believe the combination of reduced tax rates, lower mortgage payments and
recent stock markets gains will continue to create a positive economic backdrop.
While we don't rule out a setback in the coming year, we believe we will
continue to see improved earnings growth from companies forming the S&P 500.
And, we have the portfolio positioned for a recovering economy.
SCOTT DRYSDALE, RON GIBBS, GUY POPE AND TRENT E. NEVILLS
FOR THE LARGE CAP CORE INVESTMENT TEAM
An investment in the fund may present certain risks, including stock market
fluctuations that occur in response to economic and business developments.
_____________________
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 August 31, 2003 and are subject to change.
TOP TEN HOLDINGS % of net assets
August 31, 2003
Citigroup 4.9
Microsoft 3.6
General Electric 3.2
Pfizer 2.9
Bank of America 2.1
American Express 2.0
Kohl's 1.9
Johnson & Johnson 1.6
Altria Group 1.6
Target 1.6
--------------------------------
TOP FIVE SECTORS % of net assets
August 31, 2003
Financials 20.6
Information technology 19.1
Consumer discretionary 19.1
Health care 13.4
Industrials 12.1
Because the fund is actively managed, there is no guarantee the fund will
continue to maintain these holdings and sectors in the future.
AVERAGE ANNUAL TOTAL RETURN As of August 31, 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
- ----------------------------------------------------------------------------------------------------------------
8-month (cumulative) 15.49 8.85 14.82 9.82 14.68 12.54 15.76
- ----------------------------------------------------------------------------------------------------------------
1-year 11.06 4.68 10.28 5.28 10.21 8.10 11.40
- ----------------------------------------------------------------------------------------------------------------
5-year 1.89 0.69 1.74 1.44 1.73 1.52 1.95
- ----------------------------------------------------------------------------------------------------------------
10-year 8.27 7.63 8.19 8.19 8.19 8.08 8.30
- ----------------------------------------------------------------------------------------------------------------
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
- ----------------------------------------------------------------------------------------------------------------
8-month (cumulative) 9.07 2.80 8.47 3.47 8.47 6.39 9.36
- ----------------------------------------------------------------------------------------------------------------
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. Effective October
13, 2003, class D shares are closed to all new investors and new accounts.
Existing class D shareholders will be able to make additional purchases at any
time. In addition, class D sales charge of 1% is waived after October 13, 2003.
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.
5
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
COLUMBIA GROWTH FUND
The Board of Directors for Columbia Growth Fund approved the change of the
fund's fiscal year end from December 31 to August 31. As a result, this report
covers the eight-month period since the last annual report. The next report you
receive will be a report for the six-month period through February 2004.
For the eight-month period ended August 31, 2003, Columbia Growth Fund's
class A shares returned 18.15% without sales charge. The fund did better than
both the S&P 500 Index and the Lipper Large Cap Growth Funds Category average,
which returned 15.95% and 17.99%, respectively. 1 The fund benefited from strong
stock selection in health care and financial services, as well as above-average
weightings in the top performing technology and consumer discretionary sectors.
Selected energy services, technology and pharmaceutical stocks detracted
slightly from the fund's returns relative to the Russell 1000 Growth Index,
which returned 18.78% over the same period.
STRENGTH FROM HEALTH CARE AND FINANCIAL SERVICES
Health care was the biggest driver of fund performance. Top performers included
Amgen, a biotechnology company whose sales exceeded expectations; Teva
Pharmaceutical Industries, a generic drug company benefiting as patents on
certain branded drugs expire; and St. Jude Medical, a medical device company
with a strong pipeline of new products (2.8%, 1.3% and 1.0% of net assets,
respectively). 2 In financial services, the fund did well by focusing on
companies that would benefit from increased capital markets activity, including
both Goldman Sachs Group and Citigroup (1.1% and 3.0% of net assets,
respectively).
GAINS FROM CYCLICAL BIAS
We invested heavily in areas that would benefit from an economic recovery. In
technology, we targeted semiconductor companies that are taking advantage of
growing consumer interest in the wireless Internet (or WiFi) and video gaming.
We also focused on companies benefiting from the rapid deployment of broadband,
including eBay and Cisco Systems (1.3% and 3.0% of net assets, respectively).
These themes worked well. Lexmark International, which makes printers and
printer cartridges, and NVIDIA which makes chips for video games (0.4% and 0.5%
of net assets, respectively) sank, however, after missing earnings
expectations. We reduced our stakes in both.
During the summer, we added to software and information technology services
companies that stand to gain as corporations start upgrading outdated systems.
We also boosted our investments in retailers Chico's FAS, Target and Kohl's
(1.2%, 2.0% and 1.9% of net assets, respectively), whose stock prices rose in
advance of the strong back-to-school and fall buying season. We later trimmed
these positions and took profits.
DISAPPOINTMENTS IN ENERGY SERVICES AND PHARMACEUTICALS
We had an above-average stake in energy service stocks, expecting them to
benefit from the industry's demand/supply imbalance. Instead, companies that we
thought would spend more on exploration and drilling chose to use more of their
cash flow to pay down debt. We do expect a more meaningful pick-up in spending,
which will increase drilling activity at some point soon. As a result, we are
maintaining our commitment to the area. Branded pharmaceutical companies,
including Pfizer and Wyeth (5.2% and 0.9% of net assets, respectively), also
produced lackluster returns despite attractive valuations.
OPTIMISTIC OUTLOOK FOR ECONOMY AND STOCKS
We expect the economy to improve, buoyed by fiscal and monetary stimulus here
and abroad, and a return to more normal spending activities by corporations who
have, up to now, largely repaired balance sheets and built up cash. Companies
are enjoying improved
PERFORMANCE OF A $10,000 INVESTMENT
8/31/93 - 8/31/03
WITHOUT SALES CHARGE WITH SALES CHARGE
-------------------- -----------------
Class A $ 19,517 $ 18,395
Class B 19,406 19,406
Class D 19,414 19,218
Class G 19,422 19,422
Class Z 19,588 n/a
---------------------------------
GROWTH OF $10,000
OVER 10 YEARS
(MOUNTAIN CHART)
CLASS A SHARES CLASS A SHARES S&P 500 RUSSELL 1000
WITHOUT SALES CHARGE WITH SALES CHARGE INDEX GROWTH INDEX
-------------------- ----------------- ----- ------------
08/31/93 10000.00 $ 9425.00 $10000.00 $10000.00
10137.00 9554.00 9923.00 9926.00
10327.00 9733.00 10128.00 10202.00
10075.00 9495.00 10032.00 10134.00
10375.00 9778.00 10154.00 10308.00
10705.00 10089.00 10499.00 10547.00
10653.00 10041.00 10213.00 10354.00
10021.00 9444.00 9768.00 9854.00
10123.00 9541.00 9893.00 9899.00
10154.00 9570.00 10055.00 10050.00
9772.00 9210.00 9809.00 9752.00
10186.00 9600.00 10131.00 10086.00
10575.00 9967.00 10546.00 10648.00
10319.00 9726.00 10288.00 10504.00
10512.00 9907.00 10519.00 10751.00
10166.00 9581.00 10136.00 10406.00
10309.00 9717.00 10286.00 10580.00
10334.00 9740.00 10553.00 10807.00
10836.00 10213.00 10964.00 11260.00
11226.00 10581.00 11288.00 11588.00
11384.00 10729.00 11619.00 11842.00
11641.00 10972.00 12084.00 12254.00
12081.00 11386.00 12365.00 12727.00
12558.00 11836.00 12775.00 13257.00
12778.00 12043.00 12807.00 13271.00
13114.00 12360.00 13347.00 13883.00
12778.00 12043.00 13299.00 13893.00
13576.00 12795.00 13883.00 14433.00
13710.00 12922.00 14151.00 14516.00
13853.00 13056.00 14632.00 15000.00
14487.00 13654.00 14768.00 15275.00
14436.00 13606.00 14910.00 15295.00
14914.00 14057.00 15129.00 15697.00
15347.00 14464.00 15520.00 16245.00
15342.00 14460.00 15579.00 16268.00
14193.00 13377.00 14890.00 15314.00
14675.00 13832.00 15204.00 15709.00
15534.00 14641.00 16060.00 16853.00
15809.00 14900.00 16504.00 16954.00
16773.00 15809.00 17751.00 18227.00
16560.00 15608.00 17400.00 17870.00
17142.00 16156.00 18487.00 19123.00
17157.00 16170.00 18631.00 18993.00
16284.00 15347.00 17866.00 17965.00
17091.00 16109.00 18932.00 19158.00
18255.00 17206.00 20085.00 20541.00
19015.00 17921.00 20985.00 21363.00
20701.00 19511.00 22655.00 23252.00
19942.00 18795.00 21387.00 21891.00
20733.00 19541.00 22559.00 22968.00
20211.00 19049.00 21805.00 22119.00
20771.00 19576.00 22815.00 23059.00
20916.00 19713.00 23207.00 23317.00
21477.00 20242.00 23465.00 24014.00
23055.00 21729.00 25157.00 25820.00
24146.00 22757.00 26445.00 26850.00
24218.00 22825.00 26712.00 27221.00
23634.00 22275.00 26252.00 26448.00
25426.00 23964.00 27318.00 28066.00
25055.00 23614.00 27029.00 27881.00
20931.00 19727.00 23120.00 23696.00
21711.00 20463.00 24602.00 25516.00
22929.00 21611.00 26602.00 27567.00
24440.00 23035.00 28215.00 29665.00
27268.00 25700.00 29840.00 32341.00
28986.00 27319.00 31087.00 34239.00
28024.00 26412.00 30120.00 32675.00
29725.00 28016.00 31325.00 34397.00
29781.00 28069.00 32537.00 34441.00
29037.00 27367.00 31769.00 33384.00
31238.00 29442.00 33533.00 35721.00
30147.00 28414.00 32486.00 34585.00
29321.00 27635.00 32327.00 35149.00
28776.00 27121.00 31441.00 34411.00
30388.00 28640.00 33432.00 37009.00
31849.00 30018.00 34110.00 39007.00
34365.00 32389.00 36119.00 43064.00
33193.00 31285.00 34306.00 41044.00
35075.00 33059.00 33658.00 43051.00
38793.00 36563.00 36950.00 46134.00
37211.00 35071.00 35837.00 43938.00
34863.00 32858.00 35103.00 41723.00
37955.00 35773.00 35970.00 44886.00
37750.00 35579.00 35409.00 43014.00
40793.00 38447.00 37608.00 46907.00
37223.00 35083.00 35622.00 42469.00
35016.00 33003.00 35472.00 40461.00
30863.00 29088.00 32677.00 34497.00
31635.00 29816.00 32837.00 33407.00
33428.00 31506.00 34003.00 35715.00
28100.00 26484.00 30902.00 29651.00
25037.00 23597.00 28943.00 26425.00
28172.00 26552.00 31192.00 29767.00
27870.00 26268.00 31400.00 29330.00
27263.00 25695.00 30637.00 28649.00
26093.00 24593.00 30337.00 27933.00
23844.00 22473.00 28438.00 25648.00
21262.00 20039.00 26140.00 23088.00
22461.00 21169.00 26640.00 24301.00
24812.00 23386.00 28683.00 26636.00
24864.00 23435.00 28935.00 26585.00
23843.00 22472.00 28513.00 26115.00
22581.00 21283.00 27962.00 25031.00
23446.00 22098.00 29014.00 25897.00
21486.00 20251.00 27256.00 23784.00
21232.00 20012.00 27054.00 23208.00
19116.00 18016.00 25128.00 21062.00
17275.00 16281.00 23170.00 19903.00
17537.00 16529.00 23321.00 19963.00
15745.00 14840.00 20786.00 17893.00
17069.00 16088.00 22615.00 19533.00
17830.00 16805.00 23947.00 20594.00
16522.00 15572.00 22541.00 19171.00
16157.00 15228.00 21951.00 18705.00
16061.00 15138.00 21622.00 18619.00
16323.00 15384.00 21831.00 18965.00
17577.00 16566.00 23630.00 20367.00
18433.00 17373.00 24875.00 21383.00
18615.00 17545.00 25194.00 21678.00
19019.00 17925.00 25637.00 22218.00
08/31/03 19517.00 18395.00 26130.00 22770.00
MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT COLUMBIAFUNDS.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 August 31,
1993, and reinvestment of income and capital gains distributions. The S&P 500
Index tracks the performance of 500 widely held 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.
6
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
earnings, largely the result of previous cost cuts. Going forward, we expect
corporations to experience an increase in sales growth that should provide more
earnings growth next year and continue to support stock prices. Our strategy is
to maintain our cyclical bias as long as we believe investors are
underestimating the magnitude of upcoming economic and profit recoveries. Across
all sectors, we will continue to look for companies with strong competitive
positions and attractive valuations that seem poised for positive fundamental
change and above-average earnings growth.
ALEXANDER S. MACMILLAN AND PAUL J. BERLINGUET
CO-PORTFOLIO MANAGERS
An investment in the fund may present certain risks, including stock market
fluctuations that occur in response to economic and business developments.
____________________
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 August 31, 2003 and are subject to change.
TOP TEN HOLDINGS % of net assets
August 31, 2003
Pfizer 5.2
Intel 4.8
Microsoft 4.6
General Electric 4.1
Cisco Systems 3.0
Citigroup 3.0
Amgen 2.8
Wal-Mart Stores 2.6
Dell 2.1
Target 2.0
--------------------------------
TOP FIVE SECTORS % of net assets
August 31, 2003
Information technology 28.7
Health care 24.1
Consumer discretionary 18.6
Consumer staples 10.1
Financials 6.7
Because the fund is actively managed, there is no guarantee the fund will
continue to maintain these holdings and sectors in the future.
AVERAGE ANNUAL TOTAL RETURN As of August 31, 2003 (%)
CLASS A CLASS B CLASS D CLASS G CLASS Z
- -----------------------------------------------------------------------------------------------------------------------------------
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
- -----------------------------------------------------------------------------------------------------------------------------------
8-month (cumulative) 18.15 11.35 17.53 12.53 17.58 15.41 17.57 12.57 18.47
- -----------------------------------------------------------------------------------------------------------------------------------
1-year 11.31 4.90 10.67 5.67 10.72 8.64 10.76 5.76 11.71
- -----------------------------------------------------------------------------------------------------------------------------------
5-year -1.39 -2.55 -1.50 -1.81 -1.49 -1.69 -1.48 -1.94 -1.32
- -----------------------------------------------------------------------------------------------------------------------------------
10-year 6.92 6.28 6.85 6.85 6.86 6.75 6.86 6.86 6.95
- -----------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN As of June 30, 2003 (%)
CLASS A CLASS B CLASS D CLASS G CLASS Z
- -----------------------------------------------------------------------------------------------------------------------------------
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
- -----------------------------------------------------------------------------------------------------------------------------------
8-month (cumulative) 9.06 2.79 8.64 3.64 8.60 6.52 8.64 3.64 9.39
- -----------------------------------------------------------------------------------------------------------------------------------
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%. Effective October 13, 2003, class
D shares are closed to all new investors and new accounts. Existing class D
shareholders will be able to make additional purchases at any time. In addition,
class D sales charge of 1% is waived after October 13, 2003. 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.
7
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
COLUMBIA INTERNATIONAL STOCK FUND
The Board of Directors for Columbia International Stock Fund approved the change
of the fund's fiscal year end from December 31 to August 31. As a result, this
report covers the eight-month period since the last annual report. The next
report you receive will be a report for the six-month period through February
2004.
For the eight-month period ended August 31, 2003, Columbia International
Stock Fund class A shares returned 12.84% without sales charge. The fund trailed
the MSCI All Country World Free Ex US Index, which returned 17.46% during the
same period. Two factors were largely responsible for the fund's
underperformance relative to its benchmark. First, the fund had a relatively
small allocation to lower-quality companies, such as banks in Japan and
insurance companies in Europe. While this benefited the fund early in 2003,
performance suffered when these companies rebounded in the spring and summer.
Second, early in the period, investments in Asia, exclusive of Japan, were
negatively affected by the SARS (severe acute respiratory syndrome) epidemic,
which dampened economic activity and hurt Asia's tourism industry.
AN IMPROVED INVESTMENT ENVIRONMENT
Over the eight-month period, the investment environment changed dramatically.
At the outset, uncertainty about the war in Iraq, SARS and the global economic
slowdown weighed heavily on investor sentiment. Once the official end of the
war was declared and SARS appeared to be contained, investors began focusing on
data that projected improved economic growth in the second half of 2003 and
into 2004. Against this backdrop, investors returned to the stock market, and
stock valuations rose from very low levels. While European markets made strong
gains, Asian markets--particularly Thailand, Hong Kong and India--were
standouts.
JAPAN ACCOUNTED FOR THE BIGGEST COUNTRY COMMITMENT
We became more positive about Japan where we increased our investment from
17.8% to 23.2% of net assets. For many Japanese companies, extensive
restructuring over the last few years has paid off in robust profit growth,
which in turn has led to attractive valuations. Dividend yields on stocks have
increased, and in many cases, stocks currently yield more than bonds.
Deflationary pressures have eased. And while interest rates remain low, they
have moved higher. To take advantage of this improved environment, we returned
to the financial sector for the first time in many years and invested in UFJ
Holdings, a large Japanese bank, and Millea Holdings, an insurance company (0.7%
and 1.4% of net assets, respectively). 1 We also added Nissan Motor and
Matsushita Electric Industrial, which makes Panasonic brand products (0.4% and
2.0% of net assets, respectively).
Among emerging markets, our biggest allocation--at 4.3% of the fund's net
assets--was to Thailand. Investments in Thailand aided performance, as the
country's solid political leadership and strong economic recovery attracted
investor interest. The country's low interest rates have sparked an increase in
consumer spending. Additionally, stock valuations remain attractive and profit
growth is robust. Emphasizing the consumer area, we added Big C Supercenter, a
large retailer, and Land and Houses PCL, a leading residential construction
company (0.5% and 1.2% of net assets, respectively).
PERFORMANCE OF A $10,000 INVESTMENT
8/31/93 - 8/31/03
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
Class A $ 16,013 $ 15,088
Class B 15,858 15,858
Class D 15,914 15,753
Class Z 16,098 n/a
---------------------------
GROWTH OF $10,000
OVER 10 YEARS
(MOUNTAIN CHART)
MSCI ALL COUNTRY
CLASS A SHARES CLASS A SHARES WORLD FREE MSCI EAFE
WITHOUT SALES CHARGE WITH SALES CHARGE EX US INDEX INDEX
-------------------- ----------------- ----------- -----
08/31/93 $10000.00 $ 9425.00 $10000.00 $10000.00
9940.00 9368.00 9794.00 9775.00
10374.00 9778.00 10149.00 10076.00
10034.00 9457.00 9375.00 9195.00
11293.00 10644.00 10106.00 9859.00
11886.00 11203.00 10937.00 10692.00
11782.00 11104.00 10854.00 10663.00
11250.00 10603.00 10357.00 10203.00
11546.00 10882.00 10708.00 10636.00
11441.00 10783.00 10711.00 10575.00
11494.00 10833.00 10787.00 10724.00
11537.00 10874.00 10963.00 10827.00
11878.00 11195.00 11332.00 11084.00
11478.00 10818.00 11051.00 10734.00
11834.00 11154.00 11348.00 11092.00
11225.00 10580.00 10801.00 10558.00
11016.00 10383.00 10776.00 10625.00
10175.00 9590.00 10287.00 10217.00
9998.00 9423.00 10231.00 10187.00
10378.00 9782.00 10809.00 10823.00
10609.00 9999.00 11231.00 11230.00
10485.00 9882.00 11180.00 11096.00
10441.00 9840.00 11026.00 10902.00
11132.00 10492.00 11651.00 11581.00
10946.00 10317.00 11247.00 11140.00
11212.00 10567.00 11439.00 11357.00
11087.00 10450.00 11134.00 11052.00
11309.00 10659.00 11395.00 11359.00
11584.00 10918.00 11847.00 11817.00
11735.00 11060.00 12009.00 11865.00
11735.00 11060.00 12009.00 11906.00
12169.00 11469.00 12234.00 12158.00
12630.00 11904.00 12604.00 12512.00
12833.00 12095.00 12415.00 12282.00
13064.00 12313.00 12478.00 12350.00
12390.00 11678.00 12064.00 11990.00
12585.00 11861.00 12135.00 12016.00
12904.00 12162.00 12436.00 12336.00
12833.00 12096.00 12312.00 12210.00
13330.00 12564.00 12787.00 12696.00
13506.00 12729.00 12639.00 12532.00
13497.00 12721.00 12406.00 12093.00
13877.00 13079.00 12633.00 12292.00
14013.00 13207.00 12607.00 12336.00
14344.00 13519.00 12714.00 12401.00
15172.00 14299.00 13498.00 13209.00
15892.00 14978.00 14244.00 13937.00
16369.00 15428.00 14531.00 14162.00
15102.00 14234.00 13388.00 13104.00
16135.00 15207.00 14112.00 13838.00
15015.00 14152.00 12910.00 12774.00
14948.00 14088.00 12748.00 12644.00
15055.00 14190.00 12895.00 12754.00
15176.00 14303.00 13280.00 13337.00
15792.00 14884.00 14166.00 14193.00
16330.00 15391.00 14656.00 14630.00
16737.00 15775.00 14762.00 14746.00
16968.00 15992.00 14493.00 14673.00
17022.00 16043.00 14440.00 14785.00
17121.00 16137.00 14577.00 14934.00
14791.00 13940.00 12521.00 13084.00
14011.00 13206.00 12257.00 12682.00
15143.00 14273.00 13542.00 14004.00
16199.00 15268.00 14269.00 14721.00
16988.00 16011.00 14760.00 15301.00
17504.00 16498.00 14744.00 15255.00
17075.00 16094.00 14413.00 14892.00
17516.00 16509.00 15110.00 15513.00
18055.00 17017.00 15865.00 16141.00
17418.00 16417.00 15119.00 15310.00
18308.00 17255.00 15815.00 15907.00
19055.00 17959.00 16185.00 16379.00
19472.00 18353.00 16242.00 16440.00
19879.00 18736.00 16350.00 16606.00
20957.00 19752.00 16959.00 17228.00
23595.00 22239.00 17637.00 17826.00
26828.00 25285.00 19320.00 19427.00
25546.00 24077.00 18270.00 18193.00
27239.00 25673.00 18764.00 18683.00
26793.00 25252.00 19469.00 19408.00
24569.00 23156.00 18383.00 18387.00
22665.00 21361.00 17912.00 17938.00
23605.00 22248.00 18675.00 18640.00
22524.00 21229.00 17938.00 17859.00
23207.00 21872.00 18160.00 18014.00
21772.00 20521.00 17152.00 17137.00
20797.00 19601.00 16607.00 16732.00
19857.00 18715.00 15863.00 16105.00
20757.00 19563.00 16404.00 16677.00
20644.00 19457.00 16650.00 16668.00
19534.00 18411.00 15331.00 15418.00
18184.00 17138.00 14247.00 14390.00
19308.00 18198.00 15216.00 15390.00
19012.00 17919.00 14796.00 14847.00
18394.00 17337.00 14229.00 14239.00
17791.00 16768.00 13912.00 13980.00
17453.00 16450.00 13567.00 13626.00
15725.00 14821.00 12128.00 12246.00
16161.00 15232.00 12467.00 12560.00
16541.00 15590.00 13037.00 13023.00
16923.00 15950.00 13205.00 13100.00
16176.00 15246.00 12640.00 15426.00
16290.00 15353.00 12731.00 12491.00
17049.00 16068.00 13407.00 13226.00
17134.00 16149.00 13510.00 13253.00
17304.00 16309.00 13657.00 13421.00
16840.00 15872.00 13067.00 12887.00
15392.00 14507.00 11793.00 11615.00
15252.00 14375.00 11794.00 11588.00
13690.00 12903.00 10544.00 10344.00
14187.00 13371.00 11109.00 10899.00
14639.00 13798.00 11644.00 11394.00
14202.00 13385.00 11269.00 11011.00
13565.00 12785.00 10873.00 10552.00
13367.00 12599.00 10653.00 10310.00
13268.00 12505.00 10446.00 10108.00
14187.00 13371.00 11453.00 11099.00
14964.00 14104.00 12183.00 11772.00
15232.00 14356.00 12520.00 12056.00
15642.00 14742.00 12853.00 12348.00
08/31/03 16013.00 15088.00 13240.00 12646.00
MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT COLUMBIAFUNDS.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 August 31,
1993, and reinvestment of income and capital gains distributions. The Morgan
Stanley Capital International (MSCI) AC World Free Ex US Index is an unmanaged
Index representing both developed and emerging markets of 49 countries,
excluding the U.S. The MSCI EAFE Index, also an unmanaged index, is a
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 EAFE Index is the former benchmark of the fund. 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.
8
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
LOOKING FORWARD TO A GLOBAL ECONOMIC RECOVERY
We believe we are in a synchronous global recovery, brought about by support
from leading central banks, which have lowered interest rates as part of their
aggressive monetary policies. According to a recent report of the Organization
for Economic Cooperation and Development (OECD), 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 an improving 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 invests 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.
______________________
1 Holdings are disclosed as of August 31, 2003 and are subject to change.
TOP TEN HOLDINGS % of net assets
August 31, 2003
Vodafone Group 2.3
Credit Suisse Group 2.2
Matsushita Electric Industrial 2.0
Mitsubishi Estate 2.0
BP PLC, ADR 1.8
Amadeus Global Travel Distribution 1.7
NTT DoCoMo 1.6
Allianz AG 1.6
BHP Billiton 1.5
Telefonica SA 1.5
----------------------------
TOP FIVE COUNTRIES % of net assets
August 31, 2003
Japan 23.2
United Kingdom 19.1
France 7.3
Spain 6.1
Switzerland 5.5
Because the fund is actively managed, there is no guarantee the fund will
continue to maintain these holdings and country weightings in the future.
AVERAGE ANNUAL TOTAL RETURN As of August 31, 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
- -----------------------------------------------------------------------------------------------------------------
8-month (cumulative) 12.84 6.35 12.08 7.08 12.48 10.37 13.43
- -----------------------------------------------------------------------------------------------------------------
1-year 5.06 -0.97 4.04 -0.96 4.41 2.37 5.62
- -----------------------------------------------------------------------------------------------------------------
5-year 1.60 0.41 1.41 1.09 1.48 1.27 1.71
- -----------------------------------------------------------------------------------------------------------------
10-year 4.82 4.20 4.72 4.72 4.76 4.65 4.88
- -----------------------------------------------------------------------------------------------------------------
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
- -----------------------------------------------------------------------------------------------------------------
8-month (cumulative) 7.37 1.20 6.57 1.57 6.87 4.83 7.87
- -----------------------------------------------------------------------------------------------------------------
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. Effective October
13, 2003, class D shares are closed to all new investors and new accounts.
Existing class D shareholders will be able to make additional purchases at any
time. In addition, class D sales charge of 1% is waived after October 13, 2003.
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.
9
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
COLUMBIA MID CAP GROWTH FUND
The Board of Directors for Columbia Mid Cap Growth Fund, formerly Columbia
Special Fund, approved the change of the fund's fiscal year end from December 31
to August 31. As a result, this report covers the eight-month period since the
last annual report. The next report you receive will be a report for the
six-month period through February 2004.
For the eight-month period ended August 31, 2003, Columbia Mid Cap Growth
Fund class A shares returned 22.48% without sales charge. The fund
underperformed the Russell MidCap Growth Index, which returned 29.75%, and the
Russell MidCap Index, which returned 24.45% during the same period. The fund
also underperformed its peer group, the Lipper MidCap Growth Funds Category
average, which was 26.46%. 1 The fund lagged its benchmark and peer group
principally because it was underweight in low-quality technology stocks, which
were the period's star performers.
TECHNOLOGY LED THE MARKET AND THE FUND'S PERFORMANCE
Although the fund missed out on strong gains delivered by speculative technology
issues early in the period, some of these low-quality issues started to cool off
in the final months of the period, and the fund made up some lost ground with
its higher quality technology investments. In fact, we took some profits from
some of our technology holdings as valuations on technology stocks continued to
move higher. Yet, we increased our technology weight by adding selectively to
existing positions and by identifying new purchases that we believe have the
potential to perform well going forward. Among the fund's top technology
performers during the final months of the period were AU Optronics, Fairchild
Semiconductor International, National Semiconductor, Symantec, and Jabil Circuit
(0.7%, 0.8%, 0.5%, 0.8% and 1.0% of net assets, respectively). 2
HEALTH CARE STOCKS DID WELL, BUT FLATTENED NEAR THE PERIOD'S END
Although the health care sector was relatively flat during the final months of
the period, the fund's emphasis on health care stocks and strong stock selection
within the sector made a positive contribution to performance during the period.
Among the portfolio's best performers were Caremark Rx, a pharmacy benefits
manager; Barr Laboratories, a generic drug company; and Gilead Sciences, a
biotechnology company (3.2%, 2.2% and 0.9% of net assets, respectively).
ENERGY AND CONSUMER STOCKS REBOUND
Although both energy and consumer stocks lagged for most of the period, both
sectors bounced back in August, and the fund benefited from good stock
selection. In the energy sector, where the fund was overweight relative to the
Russell Midcap Growth Index, we remain committed to natural gas companies. We
believe these stocks stand to benefit as the longer-term outlook favors
consistently higher commodity prices and increased drilling activity. The fund
was slightly underweight relative to the Russell index in the consumer sector.
Our investment in Univision Communications, Class A (2.5% of net assets) was an
outstanding performer near the end of the period.
POSITIVE OUTLOOK FOR THE ECONOMY AND THE STOCK MARKET
We expect the US economy to improve in the second half of 2003 and into 2004,
helped by lower interest rates and taxes. As a result, we continue to emphasize
industrial, technology, telecommunications and consumer stocks within the
fund--all sectors that we believe would benefit as economic growth strengthens.
In choosing stocks, we remain focused on companies that we believe demonstrate
the ability to generate above-average earnings and cash flow over the long term.
Our goal is a
PERFORMANCE OF A $10,000 INVESTMENT
8/31/93 - 8/31/03
WITHOUT SALES CHARGE WITH SALES CHARGE
-------------------- -----------------
Class A $ 23,357 $ 22,014
Class B 23,214 23,214
Class D 23,214 22,982
Class G 23,214 23,214
Class T 23,395 22,050
Class Z 23,459 n/a
--------------------------
GROWTH OF $10,000 OVER 10 YEARS
(MOUNTAIN CHART)
CLASS A SHARES CLASS A SHARES RUSSELL MIDCAP RUSSELL MIDCAP
WITHOUT SALES CHARGE WITH SALES CHARGE INDEX GROWTH INDEX
-------------------- ----------------- ------------ ------------
08/31/93 $10000.00 $ 9425.00 $10000.00 $10000.00
10124.00 9542.00 10038.00 10120.00
10129.00 9547.00 10046.00 10283.00
9863.00 9296.00 9813.00 10043.00
10484.00 9881.00 10168.00 10446.00
10909.00 10281.00 10449.00 10715.00
10946.00 10316.00 10307.00 10622.00
10526.00 9921.00 9868.00 10122.00
10591.00 9982.00 9936.00 10098.00
10484.00 9881.00 9950.00 10113.00
10113.00 9531.00 9655.00 9678.00
10301.00 9708.00 9986.00 9946.00
10752.00 10134.00 10460.00 10539.00
10725.00 10108.00 10204.00 10365.00
11000.00 10367.00 10282.00 10544.00
10521.00 9916.00 9829.00 10079.00
10723.00 10107.00 9956.00 10220.00
10614.00 10003.00 10160.00 10343.00
10981.00 10350.00 10687.00 10893.00
11273.00 10625.00 10992.00 11326.00
11308.00 10658.00 11158.00 11421.00
11440.00 10782.00 11526.00 11702.00
12169.00 11469.00 11913.00 12234.00
13093.00 12340.00 12492.00 13004.00
13311.00 12546.00 12683.00 13147.00
13523.00 12745.00 12969.00 13440.00
12960.00 12215.00 12679.00 13100.00
13660.00 12875.00 13309.00 13686.00
13888.00 13090.00 13386.00 13693.00
13784.00 12992.00 13669.00 13935.00
14399.00 13571.00 13990.00 14462.00
14749.00 13901.00 14193.00 14576.00
16038.00 15116.00 14594.00 15280.00
16492.00 15544.00 14815.00 15592.00
15547.00 14653.00 14593.00 15121.00
14025.00 13218.00 13689.00 13947.00
14880.00 14025.00 14341.00 14702.00
15456.00 14567.00 15049.00 15635.00
15022.00 14158.00 15170.00 15453.00
15857.00 14945.00 16094.00 16363.00
15703.00 14800.00 15929.00 16088.00
16075.00 15151.00 16525.00 16799.00
15823.00 14913.00 16500.00 16429.00
15056.00 14190.00 15799.00 15501.00
14944.00 14085.00 16193.00 15881.00
16344.00 15405.00 17375.00 17304.00
16874.00 15904.00 17943.00 17783.00
17824.00 16799.00 19439.00 19485.00
17769.00 16747.00 19227.00 19294.00
18631.00 17559.00 20325.00 20270.00
17546.00 16537.00 19535.00 19255.00
17729.00 16709.00 19999.00 19457.00
17690.00 16673.00 20551.00 19712.00
17217.00 16227.00 20165.00 19357.00
18318.00 17264.00 21742.00 21176.00
19479.00 18359.00 22773.00 22064.00
19419.00 18302.00 22830.00 22364.00
18912.00 17824.00 22124.00 21445.00
19218.00 18113.00 22432.00 22052.00
17907.00 16878.00 21362.00 21108.00
15664.00 14763.00 17944.00 17078.00
16755.00 15792.00 19105.00 18369.00
17454.00 16451.00 20408.00 19721.00
18257.00 17207.00 21373.00 21053.00
20634.00 19448.00 22625.00 23234.00
20215.00 19053.00 22587.00 23931.00
18547.00 17481.00 21835.00 22760.00
19072.00 17976.00 22518.00 24028.00
19692.00 18560.00 24182.00 25124.00
19745.00 18610.00 24112.00 24800.00
21126.00 19911.00 24963.00 26531.00
20574.00 19391.00 24277.00 25687.00
20189.00 19029.00 23648.00 25420.00
20468.00 19291.00 22816.00 25204.00
21700.00 20452.00 23897.00 27152.00
24382.00 22980.00 24585.00 29965.00
28130.00 26512.00 26749.00 35155.00
28608.00 26963.00 25864.00 35148.00
36767.00 34653.00 27852.00 42536.00
36175.00 34095.00 29448.00 42579.00
32641.00 30764.00 28055.00 38444.00
30855.00 29081.00 27312.00 35642.00
34277.00 32306.00 28120.00 39423.00
32923.00 31030.00 27805.00 36928.00
37529.00 35371.00 30469.00 42497.00
36741.00 34629.00 30034.00 40419.00
34177.00 32212.00 29571.00 37654.00
29225.00 27544.00 26910.00 29472.00
32027.00 30186.00 28957.00 31025.00
31473.00 29663.00 29424.00 32796.00
27936.00 26329.00 27632.00 27123.00
25533.00 24065.00 25919.00 23241.00
27974.00 26366.00 28135.00 27116.00
27518.00 25936.00 28658.00 26988.00
27012.00 25459.00 28389.00 27002.00
26026.00 24529.00 27577.00 25182.00
24548.00 23136.00 26515.00 23356.00
21774.00 20522.00 23317.00 19495.00
22562.00 21265.00 24241.00 21544.00
24410.00 23006.00 26272.00 23865.00
25306.00 23850.00 27328.00 24772.00
24453.00 23047.00 27164.00 23966.00
23355.00 22012.00 26876.00 22608.00
24735.00 23313.00 28489.00 24332.00
24102.00 22716.00 27936.00 23045.00
23714.00 22350.00 27620.00 22359.00
22075.00 20806.00 25770.00 19890.00
20384.00 19212.00 23255.00 17957.00
19907.00 18763.00 23383.00 17894.00
19029.00 17935.00 21224.00 16473.00
19558.00 18434.00 22296.00 17750.00
20114.00 18957.00 23844.00 19140.00
19068.00 17971.00 22904.00 17984.00
19068.00 17971.00 22441.00 17807.00
18629.00 17558.00 22145.00 17653.00
18745.00 17667.00 22364.00 17981.00
19688.00 18556.00 23988.00 19205.00
21379.00 20150.00 26183.00 21053.00
21727.00 20478.00 26447.00 21354.00
22192.00 20916.00 27320.00 22116.00
08/31/03 23357.00 22014.00 28506.00 23332.00
MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT COLUMBIAFUNDS.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 August 31,
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.
10
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
carefully constructed portfolio of mid-cap 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.
______________________
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 August 31, 2003 and are subject to change.
TOP TEN HOLDINGS % of net assets
August 31, 2003
Caremark Rx 3.2
WellPoint Health Networks 2.5
Univision Communications, Class A 2.5
Electronic Arts 2.2
Barr Laboratories 2.2
Microchip Technology 1.7
BJ Services 1.7
UnitedHealth Group 1.7
VERITAS Software 1.6
Amdocs 1.6
-------------------------
TOP FIVE SECTORS % of net assets
August 31, 2003
Information technology 29.1
Health care 23.1
Consumer discretionary 19.1
Industrials 13.7
Energy 7.8
Because the fund is actively managed, there is no guarantee the fund will
continue to maintain these holdings and sectors in the future.
AVERAGE ANNUAL TOTAL RETURN As of August 31, 2003 (%)
CLASS A CLASS B CLASS D CLASS G CLASS T CLASS Z
- -----------------------------------------------------------------------------------------------------------------
Inception date 11/1/02 11/1/02 11/1/02 11/1/02 11/1/02 11/20/85
- -----------------------------------------------------------------------------------------------------------------
WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES
CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE
- -----------------------------------------------------------------------------------------------------------------
8-month
(cumulative) 22.48 15.44 21.82 16.82 21.82 19.61 21.73 16.73 22.52 15.49 22.85
- -----------------------------------------------------------------------------------------------------------------
1-year 17.32 10.57 16.60 11.60 16.60 14.41 16.60 11.60 17.51 10.76 17.83
- -----------------------------------------------------------------------------------------------------------------
5-year 8.32 7.05 8.18 7.89 8.18 7.97 8.18 7.74 8.35 7.08 8.41
- -----------------------------------------------------------------------------------------------------------------
10-year 8.85 8.21 8.79 8.79 8.79 8.68 8.79 8.79 8.87 8.23 8.90
- -----------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN As of June 30, 2003 (%)
CLASS A CLASS B CLASS D CLASS G CLASS T CLASS Z
- -----------------------------------------------------------------------------------------------------------------
Inception date 11/1/02 11/1/02 11/1/02 11/1/02 11/1/02 11/20/85
- -----------------------------------------------------------------------------------------------------------------
WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES
CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE
- -----------------------------------------------------------------------------------------------------------------
8-month
(cumulative) 11.09 4.70 10.63 5.63 10.56 8.47 10.56 5.56 11.29 4.92 11.49
- -----------------------------------------------------------------------------------------------------------------
1-year -1.58 -7.22 -1.99 -6.89 -2.05 -3.98 -2.05 -6.94 -1.40 -7.06 -1.23
- -----------------------------------------------------------------------------------------------------------------
5-year 2.49 1.28 2.40 2.12 2.39 2.18 2.39 1.97 2.52 1.32 2.56
- -----------------------------------------------------------------------------------------------------------------
10-year 8.81 8.16 8.76 8.76 8.75 8.64 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. Effective October 13, 2003,
class D shares are closed to all new investors and new accounts. Existing class
D shareholders will be able to make additional purchases at any time. In
addition, class D sales charge of 1% is waived after October 13, 2003.
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.
11
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
COLUMBIA SMALL CAP GROWTH FUND
The Board of Directors for Columbia Small Cap Growth Fund, formerly Columbia
Small Cap Fund, approved the change of the fund's fiscal year end from December
31 to August 31. As a result, this report covers the eight-month period since
the last annual report. The next report you receive will be a report for the
six-month period through February 2004.
For the eight-month period ended August 31, 2003, Columbia Small Cap Growth
Fund class Z shares returned 32.64% without sales charge. This return was lower
than the Russell 2000 Growth Index, which returned 35.25% during the same
period. However, it was higher than the Lipper Small-Cap Growth Funds Category
average, which was 31.39%. 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 31.00%.
The fund's strong returns were driven largely by information technology and
health care stocks. It slightly lagged its growth benchmark because it was
underweight in lower-quality technology names, which posted strong gains. An
overweight in energy stocks hurt performance, but the fund's energy holdings
rebounded late in the period.
STRONG GAINS FOR SMALL-CAP STOCKS
Stocks were weak early in the eight-month period, as fears about the economy and
impending war eroded investor confidence. However, a swift end to the major
military campaign in Iraq, a solid increase in corporate profits, and economic
stimulus in the form of lower interest and tax rates helped fuel a broad stock
market rally that commenced in May. Small-cap stocks did even better than
large-cap stocks because investors believed these stocks stood to gain more in
an improving economic environment.
TECHNOLOGY AND HEALTH CARE STOCKS WERE TOP PERFORMERS
During the period, the fund's strongest gains came from technology and health
care. The fund's underweight in lower-quality technology stocks hurt relative
performance in the early stage of the stock market rally, because lower-quality
technology stocks bounced back strongly. However, we maintained our emphasis on
high-quality stocks and increased our technology weight to 33.5% of net assets
by the end of the period. We believe this combination of a higher technology
weight and an emphasis on quality has the potential to generate the most
attractive returns for shareholders over the long term. Our investments in
Amdocs and Macromedia (0.6% and 1.6% of net assets, respectively) 2 were among
the top technology contributors to performance for the period. We experienced
disappointing returns from webMethods (0.5% of net assets) and also from Acxiom,
which was sold from the portfolio during the period.
Health care investments also generated strong gains, although they
flattened out somewhat at the end of the period. Top health care performers for
the fund included Caremark Rx and Mid Atlantic Medical Services (1.3% and 1.4%
of net assets, respectively). We were disappointed by returns from ANDRX and
Coventry Health Care (0.7% and 1.0% of net assets, respectively) but maintained
our positions in the stocks.
ENERGY STOCKS MOVED IN AND OUT OF FAVOR
Early in the period, the fund benefited from a significant overweight in energy,
aided by strong performance from Premcor, one of the largest independent
petroleum refiners in the United States (0.8% of net assets). This overweight
hurt the fund in the early summer months as energy stocks underperformed. The
summer is typically weak for the sector, and it was even weaker this year as
investors were attracted to riskier segments of the stock market. When energy
rebounded in August, we were rewarded for
PERFORMANCE OF A $10,000 INVESTMENT
10/1/96 - 08/31/03
WITHOUT
SALES CHARGE
------------
Class Z $ 21,273
------------------------------------
GROWTH OF $10,000
SINCE INCEPTION
(MOUNTAIN CHART)
CLASS Z SHARES RUSSELL 2000 RUSSELL 2000
WITHOUT SALES CHARGE INDEX GROWTH INDEX
-------------------- ----------- ------------
10/01/96 $10000.00 $10000.00 $10000.00
10174.00 9876.00 9628.00
10488.00 10283.00 9896.00
10762.00 10552.00 10089.00
11508.00 10763.00 10341.00
10820.00 10503.00 9716.00
10224.00 10007.00 9030.00
10191.00 10035.00 8926.00
11475.00 11151.00 10267.00
12245.00 11629.00 10615.00
13098.00 12170.00 11159.00
13753.00 12449.00 11493.00
15021.00 13360.00 12411.00
14449.00 12774.00 11665.00
14201.00 12691.00 11387.00
14432.00 12913.00 11394.00
13817.00 12709.00 11242.00
14953.00 13648.00 12235.00
16261.00 14210.00 12748.00
16435.00 14288.00 12825.00
15247.00 13518.00 11893.00
15715.00 13547.00 12014.00
14978.00 12449.00 11011.00
11771.00 10032.00 8470.00
12854.00 10817.00 9329.00
12984.00 11258.00 9816.00
13720.00 11848.00 10577.00
15109.00 12582.00 11534.00
15030.00 12749.00 12054.00
13452.00 11716.00 10951.00
13678.00 11899.00 11340.00
14077.00 12965.00 12342.00
14381.00 13155.00 12362.00
15682.00 13749.00 13013.00
16089.00 13373.00 12611.00
15726.00 12878.00 12139.00
16002.00 12880.00 12374.00
17555.00 12933.00 12690.00
19965.00 13705.00 14032.00
24048.00 15257.00 16505.00
24250.00 15011.00 16352.00
30795.00 17489.00 20157.00
29560.00 16337.00 18039.00
26350.00 15353.00 16217.00
24885.00 14458.00 14796.00
28386.00 15719.00 16708.00
26206.00 15213.00 15276.00
29285.00 16374.00 16883.00
28067.00 15892.00 16044.00
26663.00 15183.00 14741.00
23453.00 13624.00 12064.00
25451.00 14794.00 12802.00
25767.00 15565.00 13838.00
22982.00 14544.00 11941.00
20994.00 13833.00 10856.00
23433.00 14915.00 12184.00
23600.00 15282.00 12467.00
23984.00 15809.00 12807.00
22785.00 14954.00 11715.00
21092.00 14471.00 10983.00
17835.00 12523.00 9210.00
19105.00 13255.00 10096.00
20452.00 14281.00 10939.00
21839.00 15163.00 11621.00
21249.00 15005.00 11207.00
20197.00 14594.00 10482.00
21535.00 15766.00 11393.00
20856.00 15909.00 11147.00
20089.00 15203.00 10494.00
18741.00 14449.00 9605.00
16203.00 12267.00 8128.00
16459.00 12236.00 8124.00
15751.00 11358.00 7538.00
16027.00 11722.00 7919.00
16942.00 12768.00 8704.00
16038.00 12057.00 8103.00
15988.00 11723.00 7883.00
15742.00 11369.00 7672.00
16056.00 11515.00 7788.00
17346.00 12607.00 8525.00
18950.00 13960.00 9486.00
19422.00 14212.00 9669.00
20141.00 15102.00 10400.00
08/31/03 21273.00 15794.00 10958.00
MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT COLUMBIAFUNDS.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 October 1,
1996.
12
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
maintaining our emphasis on the sector. We believe the industry is in the midst
of an up cycle, especially for natural gas. Within energy, we have focused on
drilling companies, which are likely beneficiaries of greater investments in the
energy infrastructure. We have also invested in energy producers, such as
Chesapeake Energy and XTO Energy (0.7% and 1.1% of net assets, respectively).
A FAVORABLE ENVIRONMENT FOR STOCKS
The fund's positioning reflects our outlook for a stronger economy later in 2003
and into 2004. We continue to overweight technology, energy and health care,
where we expect earnings growth to remain positive. Within technology, we
continue to focus on companies that are generating visible earnings that can
support rising valuations and avoiding those companies whose valuations have
moved to extraordinarily high levels. We believe that our research can help us
identify companies with reasonable prices and strong growth prospects, and we
are monitoring our technology holdings for signs that the market may be pricing
in a more accelerated recovery than the companies can deliver.
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-cap companies may trade less frequently, may trade in smaller
volumes and may fluctuate more sharply in price than stocks of larger
companies.
A concentration of investments in a specific sector, such as technology, may
cause a fund to experience increased volatility.
_____________________
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 August 31, 2003 and are subject to change.
TOP TEN HOLDINGS % of net assets
August 31, 2003
Amphenol, Class A 2.8
Education Management 2.0
Harman International Industries 1.6
Macromedia 1.6
DaVita 1.5
Fair Isaac 1.5
First Health Group 1.5
Henry Schein 1.4
Mid Atlantic Medical Services 1.4
Entercom Communications 1.4
----------------------------
TOP FIVE SECTORS % of net assets
August 31, 2003
Information technology 33.5
Health care 19.2
Consumer discretionary 18.5
Industrials 10.1
Energy 8.9
Because the fund is actively managed, there is no guarantee the fund will
continue to maintain these holdings and sectors in the future.
AVERAGE ANNUAL TOTAL RETURN
As of August 31, 2003 (%)
Class Z
- -------------------------------------------------------
Inception date 10/1/96
- -------------------------------------------------------
WITHOUT
SALES CHARGE
- -------------------------------------------------------
8-month (cumulative) 32.64
- -------------------------------------------------------
1-year 29.23
- -------------------------------------------------------
5-year 12.56
- -------------------------------------------------------
Life 11.53
- -------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
As of June 30, 2003 (%)
Class Z
- -------------------------------------------------------
Inception date 10/1/96
- -------------------------------------------------------
WITHOUT
SALES CHARGE
- -------------------------------------------------------
8-month (cumulative) 21.18
- -------------------------------------------------------
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.
13
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
COLUMBIA REAL ESTATE EQUITY FUND
The Board of Directors for Columbia Real Estate Equity Fund approved the change
of the fund's fiscal year end from December 31 to August 31. As a result, this
report covers the eight-month period since the last annual report. The next
report you receive will be a report for the six-month period through February
2004.
For the eight-month period ended August 31, 2003, Columbia Real Estate
Equity Fund class A shares returned 19.62% without sales charge. The NAREIT
Index, a common measure of real estate securities performance, returned 20.61%.
An overweight allocation to forest products companies, which was made late in
2002 in anticipation of more rapid improvement in the economy, was the primary
reason the fund fell short of its benchmark during the period. The fund's
relatively high cash position also detracted somewhat from performance.
UNDERLYING BUSINESS CONDITIONS WEAK
With sluggish job growth, the average vacancy rates in major metropolitan
office markets are significantly higher than the historical average. And, few
industry participants expect much improvement in office company earnings before
the end of 2004. Similarly, apartment vacancy rates have increased. As a result
of these factors, we have maintained an underweight position in both office and
apartment companies. By contrast, more cyclically-oriented sectors of the real
estate markets, including higher-quality regional malls, shopping centers and
industrial and lodging companies, in which we maintained overweight positions,
were solid performers.
ADJUSTING TO STRETCHED REAL ESTATE VALUATIONS
Real estate investment trusts (REIT) have continued to attract inflows of
investor capital and, in many cases these inflows have driven up prices. Many
investors seem to expect future growth that we believe is not justified by the
industry's business prospects over the next year. To reflect our concerns over
what we believe to be stretched real estate valuations, we have adopted a more
defensive position for the portfolio. We increased the fund's cash position,
and late in the period we allocated approximately 11% of the fund's holdings to
the basic materials sector, which includes forest, paper products and container
companies. (The fund's investment strategy permits us to hold 20% of its assets
in non-real-estate related companies.) We focused on cyclically-oriented forest
products companies because they typically perform well in the early stages of
an economic recovery. They became attractive late in 2002 due to their
compelling valuations and stable cash flows. They underperformed during the
first six months of the year. However, in mid-June the materials sector rallied
when investors became optimistic about an economic recovery. In July and
August, these companies outperformed the NAREIT Index, confirming the value of
our strategy. However, the move occurred too late in the period to have a
significant positive impact on the fund's overall return.
PERFORMANCE OF A $10,000 INVESTMENT
4/1/94 - 8/31/03
WITHOUT SALES CHARGE WITH SALES CHARGE
-------------------- -----------------
Class A $ 29,346 $ 27,664
Class B 29,182 29,182
Class D 29,187 28,898
Class Z 29,483 n/a
--------------------------
GROWTH OF $10,000
SINCE INCEPTION
(MOUNTAIN CHART)
CLASS A SHARES CLASS A SHARES
WITHOUT SALES CHARGE WITH SALES CHARGE NAREIT INDEX
-------------------- ----------------- ------------
04/01/94 $10000.00 $ 9425.00 $10000.00
10017.00 9441.00 10170.00
10326.00 9732.00 10397.00
10135.00 9552.00 10185.00
9966.00 9393.00 10135.00
10118.00 9536.00 10165.00
9908.00 9339.00 9976.00
9610.00 9057.00 9630.00
9253.00 8721.00 9299.00
10177.00 9592.00 9977.00
9803.00 9240.00 9760.00
9899.00 9329.00 10001.00
9968.00 9395.00 9961.00
9818.00 9254.00 9958.00
10303.00 9711.00 10381.00
10562.00 9955.00 10546.00
10724.00 10107.00 10728.00
10795.00 10175.00 10856.00
11065.00 10429.00 11042.00
10820.00 10197.00 10806.00
10910.00 10283.00 10904.00
11894.00 11210.00 11500.00
12118.00 11422.00 11689.00
12221.00 11519.00 11826.00
12147.00 11448.00 11761.00
12137.00 11439.00 11821.00
12413.00 11699.00 12126.00
12707.00 11976.00 12284.00
12726.00 11994.00 12376.00
13342.00 12575.00 12863.00
13901.00 13101.00 13087.00
14173.00 13358.00 13476.00
14903.00 14046.00 14090.00
16449.00 15503.00 15554.00
16774.00 15810.00 15728.00
16877.00 15906.00 15697.00
17108.00 16124.00 15664.00
16523.00 15573.00 15233.00
17046.00 16066.00 15681.00
17819.00 16794.00 16443.00
18752.00 17674.00 16951.00
18565.00 17497.00 16911.00
20225.00 19062.00 18387.00
19533.00 18410.00 17891.00
20025.00 18874.00 18277.00
20518.00 19338.00 18708.00
20442.00 19266.00 18609.00
20060.00 18906.00 18293.00
20736.00 19543.00 18620.00
19836.00 18695.00 18013.00
19681.00 18549.00 17887.00
19626.00 18497.00 17766.00
18470.00 17408.00 16613.00
17114.00 16130.00 15044.00
18002.00 16967.00 15896.00
17698.00 16680.00 15602.00
18057.00 17019.00 15831.00
17983.00 16949.00 15432.00
17663.00 16648.00 15110.00
17538.00 16529.00 14755.00
17434.00 16432.00 14688.00
18876.00 17791.00 16082.00
19442.00 18325.00 16436.00
19003.00 17910.00 16170.00
18302.00 17250.00 15655.00
18291.00 17239.00 15457.00
17473.00 16469.00 14869.00
17119.00 16134.00 14503.00
16977.00 16000.00 14267.00
17540.00 16532.00 14719.00
17612.00 16599.00 14768.00
17179.00 16191.00 14592.00
18070.00 17031.00 15072.00
19155.00 18053.00 16085.00
19314.00 18203.00 16243.00
20032.00 18880.00 16660.00
21757.00 20506.00 18116.00
20895.00 19694.00 17381.00
21758.00 20507.00 17933.00
20723.00 19531.00 17157.00
21334.00 20107.00 17377.00
22601.00 21301.00 18600.00
22386.00 21099.00 18793.00
22071.00 20802.00 18493.00
21691.00 20444.00 18672.00
22457.00 21166.00 19118.00
22942.00 21623.00 19581.00
23938.00 22561.00 20728.00
23514.00 22162.00 20316.00
24259.00 22864.00 21059.00
22728.00 21422.00 20185.00
21958.00 20695.00 19608.00
23223.00 21887.00 20687.00
23822.00 22452.00 21191.00
23967.00 22589.00 21234.00
24442.00 23036.00 21643.00
25366.00 23907.00 22942.00
25551.00 24082.00 23137.00
26057.00 24558.00 23449.00
26429.00 24910.00 24090.00
25060.00 23619.00 22830.00
24805.00 23378.00 22784.00
23825.00 22455.00 21909.00
23117.00 21788.00 20855.00
24299.00 22901.00 21838.00
24527.00 23117.00 21999.00
23865.00 22493.00 21359.00
24139.00 22751.00 21711.00
24557.00 23145.00 22146.00
25581.00 24110.00 23120.00
26827.00 25284.00 24517.00
27414.00 25838.00 25051.00
28766.00 27112.00 26391.00
08/31/03 29346.00 27664.00 26539.00
MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT COLUMBIAFUNDS.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 REIT. 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 April 1, 1994.
14
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
RISKS RISE FOR REIT
Strong performance by REIT during the year largely has been the result of
investors seeking higher yields than they can get from alternative fixed income
investments. Although we believe that the business conditions underlying the
REIT markets likely have bottomed, real estate stocks have become pricey from a
historical perspective. Risk has been rising; therefore, we have taken steps to
diversify the portfolio to protect shareholder capital. Yet, we believe the fund
is well positioned to benefit from economic recovery over the longer 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
August 31, 2003
Cousins Properties 5.2
Simon Property Group 4.9
General Growth Properties 4.7
iStar Financial 4.6
ProLogis Trust 4.3
Bowater 4.0
Kimco Realty 3.4
Rouse 3.4
Alexandria Real Estate Equities 3.4
Regency Centers 3.2
------------------------------
TOP FIVE SECTORS % of net assets
August 31, 2003
Real estate 77.8
Paper & forest products 8.7
Other 5.8
Hotels, restaurants & leisure 5.4
Containers & packaging 2.3
Because the fund is actively managed, there is no guarantee the fund will
continue to maintain these holdings and sectors in the future.
AVERAGE ANNUAL TOTAL RETURN As of August 31, 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
- ------------------------------------------------------------------------------------------------------------
8-month
(cumulative) 19.62 12.74 18.97 13.97 18.99 16.81 20.01
- ------------------------------------------------------------------------------------------------------------
1-year 18.29 11.47 17.63 12.63 17.65 15.46 18.84
- ------------------------------------------------------------------------------------------------------------
5-year 11.39 10.08 11.27 11.00 11.27 11.04 11.49
- ------------------------------------------------------------------------------------------------------------
Life 12.11 11.41 12.05 12.05 12.05 11.93 12.17
- ------------------------------------------------------------------------------------------------------------
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
- ------------------------------------------------------------------------------------------------------------
8-month
(cumulative) 18.60 11.78 18.11 13.11 18.13 15.97 19.10
- ------------------------------------------------------------------------------------------------------------
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. Effective October
13, 2003, class D shares are closed to all new investors and new accounts.
Existing class D shareholders will be able to make additional purchases at any
time. In addition, class D sales charge of 1% is waived after October 13, 2003.
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.
15
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
COLUMBIA TECHNOLOGY FUND
The Board of Directors for Columbia Technology Fund approved the change of the
fund's fiscal year end from December 31 to August 31. As a result, this report
covers the eight-month period since the last annual report. The next report you
receive will be a report for the six-month period through February 2004.
TECHNOLOGY STOCKS BACK IN FAVOR
For the eight months ended August 31, 2003, Columbia Technology Fund class A
shares returned 55.94% without sales charge. The fund outperformed the Merrill
Lynch 100 Technology Index, which returned 50.92% for the same period. The
fund's aggressive positioning and emphasis on semiconductors and the Internet
accounted for its superior relative returns.
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 in multinational markets.) But the cold wore off, military
victory was declared, the dollar weakened and stocks began to rise. Many of the
stocks that had been beaten down hardest bounced back the strongest as
investors were attracted to their low valuations and the prospects of a
strengthening economy. Among sectors, technology was the strongest performer
for the eight-month period.
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 increased. And although weaker Internet companies were
driven out of business after the technology bubble burst in 2000, many of the
companies that survived have prospered. For example, E-Loan rose sharply as
on-line customers discovered the convenience of this one-stop shopping emporium
for loans, mortgages and home equity credit lines. We took profits and sold our
position in the stock.
We also invested in companies that supply and support the infrastructure for
high speed Internet transmission and networking systems, such as PMC-Sierra. We
pared back our position in PMC-Sierra to 1.7% of net assets,1 collecting gains
on the shares we sold. We initiated positions in American Tower, Class A and
Crown Castle International (1.1% and 1.2% of net assets, respectively), two
companies which own and operate communications and radio towers in the US and
the UK, as well as in the fast growing markets of Brazil and Mexico.
STRONG RETURNS FROM BIOTECH, INTERNATIONAL INVESTMENTS
Biotechnology companies also rebounded during the period. We sold our position
in Gilead Sciences when it reached our price target and added Onyx
Pharmaceuticals (0.7% of net assets), a company that is developing drugs that
block tumor cell growth. Outside the United States, we posted strong returns
from Vimpel-Communications (1.4% of net assets), the number one mobile phone
service provider in Russia.
PERFORMANCE OF A $10,000 INVESTMENT
11/9/00 - 8/31/03
WITHOUT SALES CHARGE WITH SALES CHARGE
-------------------- -----------------
Class A $ 5,904 $ 5,566
Class B 5,854 5,679
Class D 5,874 5,816
Class Z 5,924 n/a
--------------------
GROWTH OF $10,000
SINCE INCEPTION
(MOUNTAIN CHART)
CLASS A SHARES CLASS A SHARES MERRILL LYNCH 100
WITHOUT SALES CHARGE WITH SALES CHARGE TECHNOLOGY INDEX
-------------------- ----------------- ----------------
11/09/00 $10000.00 $ 9425.00 $10000.00
8713.00 8212.00 7744.00
8622.00 8127.00 7317.00
9142.00 8617.00 8577.00
6815.00 6423.00 6096.00
6145.00 5792.00 5123.00
7365.00 6941.00 6259.00
7135.00 6725.00 5891.00
7285.00 6866.00 5912.00
6745.00 6357.00 5377.00
6095.00 5745.00 4719.00
4547.00 4285.00 3495.00
5166.00 4869.00 4158.00
5896.00 5557.00 4944.00
6126.00 5773.00 4935.00
6086.00 5736.00 4962.00
5367.00 5058.00 4289.00
6106.00 5755.00 4788.00
5376.00 5067.00 4204.00
5047.00 4757.00 3969.00
4607.00 4342.00 3321.00
3888.00 3664.00 2877.00
3858.00 3636.00 2776.00
3468.00 3269.00 2277.00
3818.00 3598.00 2774.00
4258.00 4013.00 3386.00
3788.00 3570.00 2885.00
3828.00 3608.00 2876.00
3808.00 3589.00 2901.00
3679.00 3467.00 2880.00
4138.00 3900.00 3218.00
4888.00 4607.00 3764.00
4988.00 4701.00 3746.00
5398.00 5088.00 3916.00
08/31/03 5904.00 5566.00 4354.00
MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT COLUMBIAFUNDS.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 November 9, 2000.
16
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
OPTIMISTIC ABOUT THE PERIOD AHEAD
The fund has had a strong run over the past eight months, a much needed recovery
from a period when technology stocks were out of favor. Looking ahead, we remain
bullish on the prospects for the technology sector because we believe the
economy's underlying strength is just beginning to surface. However, we have not
tied the fund's prospects to an improving economy or increased corporate
spending on information technology. Instead, we are focused on product cycle
themes, such as broadband and the Internet, where we believe accelerating usage
has the potential to provide opportunities going forward.
WAYNE M. COLLETTE, THEODORE R. WENDELL AND TRENT E. NEVILLS
ON BEHALF OF THE COLUMBIA TECHNOLOGY FUND TEAM.
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 concentrates in technology stocks.
_________________
1 Holdings are disclosed as of August 31, 2003 and are subject to change.
TOP TEN HOLDINGS % of net assets
August 31, 2003
Covad Communications Group 5.2
ZiLOG 2.7
Millicom International Cellular SA 2.4
United Online 2.4
Yahoo! 2.0
PMC-Sierra 1.7
Intel 1.6
MIPS Technologies, Class B 1.6
Switchboard 1.5
Telefonaktiebolaget LM Ericsson 1.5
---------------------------
TOP FIVE SECTORS % of net assets
August 31, 2003
Semiconductor equipment & products 18.4
Software 12.0
Communications equipment 10.3
Internet software & services 9.5
Diversified telecommunication services 8.5
Because the fund is actively managed, there is no guarantee the fund will
continue to maintain these holdings and sectors in the future.
AVERAGE ANNUAL TOTAL RETURN As of August 31, 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
- -----------------------------------------------------------------------------------------------------------------------
8-month (cumulative) 55.94 46.97 55.03 50.03 55.56 53.01 56.46
- -----------------------------------------------------------------------------------------------------------------------
1-year 53.11 44.15 51.81 46.81 52.33 49.78 53.63
- -----------------------------------------------------------------------------------------------------------------------
Life -17.11 -18.83 -17.36 -18.25 -17.26 -17.55 -17.01
- -----------------------------------------------------------------------------------------------------------------------
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
- -----------------------------------------------------------------------------------------------------------------------
8-month (cumulative) 30.63 23.12 29.58 24.58 30.37 28.07 31.15
- -----------------------------------------------------------------------------------------------------------------------
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. Effective October
13, 2003, class D shares are closed to all new investors and new accounts.
Existing class D shareholders will be able to make additional purchases at any
time. In addition, class D sales charge of 1% is waived after October 13, 2003.
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.
17
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
COLUMBIA STRATEGIC INVESTOR FUND
The Board of Directors for Columbia Strategic Investor Fund, formerly Columbia
Strategic Value Fund, approved the change of the fund's fiscal year end from
December 31 to August 31. As a result, this report covers the eight-month period
since the last annual report. The next report you receive will be a report for
the six-month period through February 2004.
For the eight-month period ended August 31, 2003, Columbia Strategic
Investor Fund class A shares returned 21.48% without sales charge. The fund
outperformed both the Russell 3000 Value Index and the S&P 500 Index, which
returned 15.82% and 15.95%, respectively. It also did better than its peer
group, the Lipper Multi-Cap Value Fund Category average, which was 17.20% during
the same period. 1 Strong stock selection, particularly among retail and
technology stocks, was the primary catalyst for the fund's positive performance.
BETTER ECONOMY, INVESTOR OPTIMISM FUEL SPRING STOCK MARKET RALLY
After a weak first quarter, the economic climate began to brighten in the
spring as a result of 13 interest rate cuts, aggressive tax cuts, a significant
increase in the money supply and an end to the major military campaign in Iraq.
As a result, investors were willing to embrace more risky investments, and the
stock market rallied strongly starting in May.
However, we remained concerned about weak employment data, which could have
a negative impact on consumer spending in the period ahead. As a result, we made
some significant changes in the portfolio in the final months of the period.
TECHNOLOGY AND RETAIL HOLDINGS POST STRONG GAINS
The fund's exposure to the technology sector was a key contributor to positive
performance for the period. Among the fund's top performers were software
leader SAP AG, a leader in enterprise software, and Polycom, a video
conferencing company (0.3% and 0.7% of net assets, respectively). 2 Polycom
benefited from corporate America's focus on cost cutting, a trend that we
anticipate will continue. We also believe that Polycom, along with JLG
Industries (0.3% of net assets), a leading producer of materials handling
equipment, are likely beneficiaries of any increase in capital spending by
small businesses.
In the consumer sector, our investments in Home Depot and Target had a
significant positive impact on performance (0.2% and 0.3% of net assets,
respectively). However, weaker-than-anticipated employment data in August
prompted us to shift our overall portfolio strategy from aggressive to
defensive. We took profits and trimmed positions in both retailers.
The fund redeployed assets to more stable, long-term performers in the consumer
sector, such as McDonald's (0.6% of net assets), which enjoyed a strong comeback
near the end of the eight-month period. We also added Covad Communications
Group, a leading broadband service provider of high speed internet (0.2% of net
assets).
NEW INVESTMENTS IN HEALTH CARE AND INTERNATIONAL STOCKS
As we shifted away from consumer cyclicals, we also added to more defensive
sectors. For example, we added to our investments in the health care sector,
where demographic trends are fueling long-term demand. We made new investments
in Haemonetics, ICN Pharmaceuticals, Tenet Healthcare and Merck (0.4%, 0.4%,
0.3% and 0.2% of net assets, respectively).
We also boosted our investment in Barrick Gold (0.5% of net assets), a gold
exploration and mining company. During periods of economic uncertainty, gold
offers an attractive alternative to equities and bonds.
Finally, in financial services, we sought to avoid the impact of rising interest
rates by investing outside the United States. We trimmed our positions in
Wachovia and J.P. Morgan Chase (0.3% and 0.5% of net assets, respectively) and
began or increased our exposure in Japanese financial institutions such as Nikko
Cordial, Nomura Holdings and Mitsubishi Tokyo Financial Group (0.2%, 0.3%, and
0.2% of net assets, respectively).
PERFORMANCE OF A $10,000 INVESTMENT
11/9/00 - 8/31/03
WITHOUT SALES CHARGE WITH SALES CHARGE
-------------------- -----------------
Class A $ 16,166 $ 15,238
Class B 16,034 15,734
Class D 16,024 15,866
Class Z 16,196 n/a
---------------------------------
GROWTH OF $10,000
SINCE INCEPTION
(MOUNTAIN CHART)
CLASS A SHARES CLASS A SHARES S&P 500 RUSSELL 3000
WITHOUT SALES CHARGE WITH SALES CHARGE INDEX VALUE INDEX
-------------------- ----------------- ----- -----------
11/09/00 $10000.00 $ 9425.00 $10000.00 $10000.00
9790.00 9227.00 9340.00 9686.00
11224.00 10579.00 9386.00 10206.00
12274.00 11568.00 9719.00 10261.00
12254.00 11549.00 8833.00 9994.00
11984.00 11295.00 8273.00 9655.00
12934.00 12190.00 8915.00 10126.00
13743.00 12953.00 8975.00 10356.00
13963.00 13160.00 8757.00 10171.00
13884.00 13085.00 8671.00 10136.00
13664.00 12879.00 8128.00 9755.00
12325.00 11616.00 7472.00 9041.00
12736.00 12003.00 7614.00 8984.00
13896.00 13097.00 8198.00 9515.00
14568.00 13731.00 8270.00 9764.00
14599.00 13759.00 8150.00 9703.00
14719.00 13872.00 7992.00 9722.00
15591.00 14695.00 8293.00 10202.00
15521.00 14629.00 7790.00 9906.00
15541.00 14648.00 7733.00 9925.00
14900.00 14043.00 7182.00 9383.00
13636.00 12852.00 6623.00 8472.00
13676.00 12889.00 6666.00 8529.00
12311.00 11603.00 5941.00 7604.00
12894.00 12153.00 6464.00 8135.00
14141.00 13328.00 6845.00 8656.00
13310.00 12544.00 6443.00 8281.00
12945.00 12201.00 6274.00 8078.00
12681.00 11952.00 6180.00 7859.00
12620.00 11894.00 6240.00 7877.00
13827.00 13032.00 6754.00 8574.00
14982.00 14121.00 7110.00 9150.00
15125.00 14255.00 7201.00 9267.00
15601.00 14704.00 7328.00 9429.00
08/31/03 16166.00 15238.00 7470.00 9593.00
MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT COLUMBIAFUNDS.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 indexes. The S&P 500 Index is an unmanaged index that tracks the
performance of 500 widely held 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. Index performance is from November 9,
2000.
18
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
LOOKING AHEAD
The fund's positioning reflects our mixed outlook for the economy in the months
ahead. We will continue to look for signs that a solid recovery is underway, but
we believe that the economy's growth spurt could be cut short if it is not
accompanied by job growth. For now we expect to maintain a more defensive
posture, especially relative to the US consumer.
ROBERT A. UNGER AND EMIL GJESTER
CO-PORTFOLIO MANAGERS
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. The fund also invests 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.
____________________
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 August 31, 2003 and are subject to change.
TOP TEN HOLDINGS % of net assets
August 31, 2003
3M 1.6
Caterpillar 1.2
Eaton 1.0
Citigroup 0.9
Texas Instruments 0.8
Potash 0.8
Cendant 0.8
Fifth Third Bancorp 0.8
MGIC Investment 0.7
Polycom 0.7
--------------------
TOP FIVE SECTORS % of net assets
August 31, 2003
Consumer discretionary 12.6
Financials 11.9
Industrials 11.8
Information technology 10.1
Materials 8.4
Because the fund is actively managed, there is no guarantee the fund will
continue to maintain these holdings and sectors in the future.
AVERAGE ANNUAL TOTAL RETURN As of August 31, 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
- --------------------------------------------------------------------------------------------------------------------------
8-month (cumulative) 21.48 14.49 20.76 15.76 20.59 18.40 21.61
- --------------------------------------------------------------------------------------------------------------------------
1-year 18.24 11.45 17.27 12.27 17.20 15.02 18.46
- --------------------------------------------------------------------------------------------------------------------------
Life 18.65 16.18 18.31 17.52 18.28 17.86 18.73
- --------------------------------------------------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------------------------------------------------
8-month (cumulative) 17.30 10.55 16.51 11.51 16.43 14.28 17.45
- --------------------------------------------------------------------------------------------------------------------------
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 16.64 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. Effective October
13, 2003, class D shares are closed to all new investors and new accounts.
Existing class D shareholders will be able to make additional purchases at any
time. In addition, class D sales charge of 1% is waived after October 13, 2003.
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 reimbursements 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.
19
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
COLUMBIA BALANCED FUND
The Board of Directors for Columbia Balanced Fund approved the change of the
fund's fiscal year end from December 31 to August 31. As a result, this report
covers the eight-month period since the last annual report. The next report you
receive will be a report for the six-month period through February 2004.
For the eight months ended August 31, 2003, Columbia Balanced Fund class A
shares returned 10.35% without sales charge. Over the same time, the Lehman
Brothers Aggregate Bond Index returned 1.10% and the S&P 500 Index returned
15.95%. The fund's performance was slightly less than the Lipper Balanced Funds
Category average, which returned 10.55%. 1 Strong stock selection in consumer
cyclicals and finance helped performance. In addition, the fund's overweight in
the consumer cyclicals sector and underweight in the consumer staples sector
benefited returns.
HISTORICALLY LOW YIELDS LIMITED FIXED-INCOME RETURNS
The year began with the widespread belief that interest rates were poised to
move higher. However, they moved lower when the economy failed to show marked
improvement, and did not move higher until the economy showed signs of
stabilizing late in the period. In June, the Federal Reserve Board lowered the
federal funds rate--the overnight rate banks charge each other for
borrowing--to 1.0%. Investors responded to the lowest short-term yields in 45
years by shifting to higher-yielding, lower quality fixed-income securities.
While the bonds in the fund's portfolio performed better than our benchmark,
the Lehman Brothers Aggregate Bond Index, they were not a strong contributor to
the fund's overall performance. High-yield bonds are limited to 10% of the
fund's bond holdings and we do not invest in emerging market or foreign
currency denominated bonds. These groups were strong performers during the
period.
STOCKS DECLINED EARLY IN PERIOD, SOARED IN SECOND HALF
During the first three months of 2003, the sluggish stock market reflected
investor fears of impending war in Iraq, rising unemployment and generally weak
economic growth. However, investor psychology began to shift after the United
States declared a swift military victory in Iraq and corporate profits began to
rise. As a result, we increased the fund's allocation to stocks and reduced its
exposure to bonds to take advantage of improving stock market conditions.
Early in the period, we built up our positions in out-of-favor cyclical
stocks, particularly in the leisure and retail areas. We began or added to our
investment in Carnival, which we later sold at a profit, as well as Royal
Caribbean Cruises, Target and Dollar General (0.7%, 1.0% and 0.6% of net assets,
respectively). 2 These holdings helped performance as investor and consumer
sentiment improved.
Our investments in the technology and financial sectors also helped performance.
Silicon Laboratories and National Semiconductor (0.5% and 0.5% of net assets,
respectively) both posted returns that outpaced those of their large-cap
counterparts. Citigroup, Merrill Lynch and American Express (3.1%, 0.6% and 1.3%
of net assets, respectively) also posted gains as the economy strengthened over
the summer.
PERFORMANCE OF A $10,000 INVESTMENT
8/31/93 - 8/31/03
WITHOUT SALES CHARGE WITH SALES CHARGE
-------------------- -----------------
Class A $ 20,409 $ 19,237
Class B 20,286 20,286
Class D 20,308 20,102
Class Z 20,498 n/a
------------------------------
GROWTH OF $10,000 OVER 10 YEARS
CLASS A CLASS A S&P 500 LEHMAN BROTHERS
WITHOUT SALES CHARGE WITH SALES CHARGE INDEX AGGREGATE BOND INDEX
-------------------- ----------------- ----- --------------------
08/31/93 $10000.00 $ 9425.00 $10000.00 $10000.00
10048.00 9470.00 10027.00 9923.00
10118.00 9537.00 10064.00 10128.00
9983.00 9409.00 9979.00 10032.00
10124.00 9541.00 10032.00 10154.00
10361.00 9766.00 10168.00 10499.00
10175.00 9590.00 9991.00 10213.00
9870.00 9302.00 9744.00 9768.00
9915.00 9345.00 9666.00 9893.00
10023.00 9447.00 9665.00 10055.00
9835.00 9269.00 9644.00 9809.00
10134.00 9551.00 9836.00 10131.00
10317.00 9724.00 9848.00 10546.00
10116.00 9534.00 9703.00 10288.00
10133.00 9550.00 9694.00 10519.00
9988.00 9414.00 9673.00 10136.00
10133.00 9550.00 9740.00 10286.00
10274.00 9683.00 9932.00 10553.00
10614.00 10004.00 10169.00 10964.00
10767.00 10148.00 10231.00 11288.00
10902.00 10276.00 10374.00 11619.00
11281.00 10632.00 10776.00 12084.00
11429.00 10771.00 10854.00 12365.00
11649.00 10979.00 10830.00 12775.00
11775.00 11098.00 10961.00 12807.00
12043.00 11351.00 11068.00 13347.00
12025.00 11334.00 11212.00 13299.00
12381.00 11669.00 11380.00 13883.00
12673.00 11945.00 11539.00 14151.00
12832.00 12094.00 11615.00 14632.00
12825.00 12088.00 11413.00 14768.00
12927.00 12184.00 11333.00 14910.00
12977.00 12231.00 11270.00 15129.00
13104.00 12351.00 11247.00 15520.00
13226.00 12466.00 11398.00 15579.00
12956.00 12211.00 11429.00 14890.00
13162.00 12406.00 11409.00 15204.00
13561.00 12781.00 11608.00 16060.00
13723.00 12934.00 11866.00 16504.00
14318.00 13495.00 12068.00 17751.00
14168.00 13353.00 11956.00 17400.00
14516.00 13682.00 11993.00 18487.00
14558.00 13721.00 12023.00 18631.00
14340.00 13516.00 11890.00 17866.00
14742.00 13894.00 12068.00 18932.00
15234.00 14358.00 12183.00 20085.00
15691.00 14789.00 12328.00 20985.00
16585.00 15632.00 12661.00 22655.00
16081.00 15157.00 12553.00 21387.00
16536.00 15585.00 12738.00 22559.00
16349.00 15409.00 12922.00 21805.00
16672.00 15713.00 12982.00 22815.00
16822.00 15854.00 13113.00 23207.00
17057.00 16076.00 13281.00 23465.00
17654.00 16639.00 13270.00 25157.00
18157.00 17113.00 13315.00 26445.00
18261.00 17211.00 13384.00 26712.00
18182.00 17137.00 13512.00 26252.00
18791.00 17711.00 13626.00 27318.00
18712.00 17636.00 13655.00 27029.00
17307.00 16312.00 13878.00 23120.00
17897.00 16868.00 14202.00 24602.00
18477.00 17415.00 14127.00 26602.00
19161.00 18059.00 14208.00 28215.00
20199.00 19038.00 14250.00 29840.00
20775.00 19580.00 14351.00 31087.00
20314.00 19146.00 14100.00 30120.00
20976.00 19770.00 14178.00 31325.00
21177.00 19960.00 14223.00 32537.00
20764.00 19570.00 14098.00 31769.00
21475.00 20240.00 14053.00 33533.00
21049.00 19839.00 13992.00 32486.00
20801.00 19605.00 13985.00 32327.00
20703.00 19513.00 14148.00 31441.00
21345.00 20118.00 14200.00 33432.00
21800.00 20546.00 14199.00 34110.00
22761.00 21452.00 14130.00 36119.00
22235.00 20957.00 14084.00 34306.00
22880.00 21564.00 14254.00 33658.00
24335.00 22936.00 14442.00 36950.00
23827.00 22457.00 14401.00 35837.00
23233.00 21897.00 14393.00 35103.00
24002.00 22622.00 14693.00 35970.00
23928.00 22552.00 14826.00 35409.00
24954.00 23520.00 15041.00 37608.00
23901.00 22527.00 15136.00 35622.00
23548.00 22194.00 15236.00 35472.00
22552.00 21255.00 15486.00 32677.00
22951.00 21631.00 15774.00 32837.00
23371.00 22027.00 16033.00 34003.00
21901.00 20641.00 16172.00 30902.00
21152.00 19936.00 16253.00 28943.00
22068.00 20799.00 16185.00 31192.00
22169.00 20894.00 16282.00 31400.00
21857.00 20600.00 16344.00 30637.00
21795.00 20542.00 16710.00 30337.00
21004.00 19796.00 16902.00 28438.00
19950.00 18803.00 17100.00 26140.00
20337.00 19167.00 17457.00 26640.00
21134.00 19919.00 17216.00 28683.00
21252.00 20030.00 17106.00 28935.00
20955.00 19750.00 17245.00 28513.00
20770.00 19576.00 17412.00 27962.00
21069.00 19858.00 17123.00 29014.00
20366.00 19195.00 17455.00 27256.00
20439.00 19264.00 17603.00 27054.00
19581.00 18455.00 17755.00 25128.00
18580.00 17512.00 17970.00 23170.00
18831.00 17748.00 18273.00 23321.00
17778.00 16756.00 18569.00 20786.00
18461.00 17399.00 18484.00 22615.00
19175.00 18073.00 18478.00 23947.00
18497.00 17433.00 18861.00 22541.00
18254.00 17205.00 18878.00 21951.00
18148.00 17105.00 19138.00 21622.00
18223.00 17175.00 19123.00 21831.00
19156.00 18054.00 19282.00 23630.00
19813.00 18674.00 19640.00 24875.00
19922.00 18776.00 19601.00 25194.00
19954.00 18806.00 18942.00 25637.00
08/31/03 20409.00 19237.00 19074.00 26130.00
MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT COLUMBIAFUNDS.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 August 31,
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 widely
held 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.
20
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
GENERALLY POSITIVE OUTLOOK
We believe the combination of reduced tax rates and recent stock market gains
will continue to make consumers more optimistic and result in a moderate to
strong economy in the coming months. In this environment, we expect to maintain
our diversified bond holdings, with an emphasis on quality and a bias toward
companies that can benefit from an improving economy. We are generally more
optimistic on capital spending going forward and will look for opportunities to
incorporate that outlook into our stock selection.
LEONARD APLET, JEFFREY RIPPEY, SCOTT DRYSDALE, RON GIBBS,
GUY POPE AND TRENT E. NEVILLS
FOR THE LARGE CAP CORE AND FIXED INCOME INVESTMENT TEAMS
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.
____________________
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 August 31, 2003 and are subject to change.
TOP TEN EQUITY HOLDINGS % of net assets
August 31, 2003
Citigroup 3.1
Microsoft 2.3
General Electric 2.1
Pfizer 1.9
Bank of America 1.4
American Express 1.3
Kohl's 1.2
Johnson & Johnson 1.0
Altria Group 1.0
Target 1.0
-------------------------------
PORTFOLIO COMPOSITION % of net assets
August 31, 2003
Common stocks 63.7
Government issues 14.0
Corporate notes & bonds 13.8
Asset-backed securities 3.6
Cash, net receivables & payables 2.4
Collateralized mortgage obligations 1.1
Commercial mortgage-backed securities 1.0
Preferred stock 0.4
Because the fund is actively managed, there can be no guarantee the fund
will continue to maintain these holdings or this composition in the future.
AVERAGE ANNUAL TOTAL RETURN As of August 31, 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
- --------------------------------------------------------------------------------------------------------------------------
8-month (cumulative) 10.35 4.01 9.83 4.83 10.01 7.92 10.81
- --------------------------------------------------------------------------------------------------------------------------
1-year 8.39 2.17 7.74 2.74 7.86 5.80 8.86
- --------------------------------------------------------------------------------------------------------------------------
5-year 3.35 2.14 3.23 2.91 3.25 3.04 3.44
- --------------------------------------------------------------------------------------------------------------------------
10-year 7.39 6.76 7.33 7.33 7.34 7.23 7.44
- --------------------------------------------------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------------------------------------------------
8-month (cumulative) 7.91 1.71 7.37 2.37 7.44 5.37 8.27
- --------------------------------------------------------------------------------------------------------------------------
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. Effective October
13, 2003, class D shares are closed to all new investors and new accounts.
Existing class D shareholders will be able to make additional purchases at any
time. In addition, class D sales charge of 1% is waived after October 13, 2003.
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.
21
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
COLUMBIA SHORT TERM BOND FUND
The Board of Directors for Columbia Short Term Bond Fund approved the
change of the fund's fiscal year end from December 31 to August 31. As a result,
this report covers the eight-month period since the last annual report. The next
report you receive will be a report for the six-month period through February
2004.
For the eight-month period ended August 31, 2003, the class A shares of
Columbia Short Term Bond Fund returned 0.82% without sales charge. By
comparison, the Merrill Lynch 1-5 Year Government/Corporate Index returned
1.55%, the Merrill Lynch 1-3 Year Treasury Index returned 0.82% and the Lipper
Short Investment Grade Debt Category returned 1.27%. 1 The fund's returns were
in line with the 1-3 year index, but were below the 1-5 year index because bonds
with longer maturities outperformed during the period. The fund underperformed
its peer group in large part because we maintained our high quality standards at
a time when the market became more receptive to lower quality securities.
THE RECOVERY GROWS STRONGER
Gross domestic product (GDP) rose by just 1.4% in the first quarter, as
business investment and industrial production were especially sluggish. The
government continued its efforts to stimulate the economy by reducing taxes,
growing the money supply and lowering short-term interest rates. In late June,
the Federal Reserve Board lowered the fed funds rate--the target overnight
interest rate at which commercial banks lend money to one another--by one
quarter of a 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. Second quarter GDP growth came in at a
higher-than-expected 3.1%, and growth at this level or above is widely
anticipated for the remainder of the year.
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 longer duration, lower quality securities. Duration is a measure of
interest-rate sensitivity, and higher durations are associated with greater risk
in a rising interest-rate environment. The trend toward risk-taking had a
negative effect on relative performance during the first eight months of 2003.
The fund holds only investment grade securities and has maintained an average
credit quality of A+, with less than 8% of the portfolio in the BBB category.
Similarly, the fund's average duration of between 1.65 to 1.75 years was in line
with that of the Merrill Lynch 1-3 Year Treasury Index. However, it was
materially lower than the 2.3 to 2.4 year duration of the Merrill Lynch 1-5 Year
Government/Corporate Index during a time when securities with higher durations
outperformed.
The fund 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. Until interest rates began to rise during the summer, mortgage
pass-throughs were hampered by unusually high refinancing activity, which caused
the securities to prepay. The fund was able to limit its prepayment exposure by
focusing on mortgages with lower coupons (or stated interest rates).
PERFORMANCE OF A $10,000 INVESTMENT
8/31/93 - 8/31/03
WITHOUT SALES CHARGE WITH SALES CHARGE
-------------------- -----------------
Class A $ 16,266 $ 15,489
Class B 16,163 16,163
Class D 16,241 16,072
Class G 16,196 16,196
Class T 16,286 15,508
Class Z 16,313 n/a
-------------------------------
GROWTH OF $10,000 OVER 10 YEARS
(MOUNTAIN CHART)
MERRILL LYNCH 1-5 MERRILL LYNCH 1-3
CLASS A SHARES CLASS A SHARES YEAR GOV'T/CORP YEAR TREASURY
WITHOUT SALES CHARGE WITH SALES CHARGE INDEX INDEX
-------------------- ----------------- ----- -----
08/31/93 $10000.00 $ 9525.00 $10000.00 $10000.00
10018.00 9542.00 10036.00 10032.00
10036.00 9559.00 10058.00 10052.00
10018.00 9542.00 10040.00 10055.00
10060.00 9582.00 10081.00 10092.00
10115.00 9635.00 10166.00 10157.00
10034.00 9558.00 10065.00 10092.00
9981.00 9507.00 9974.00 10041.00
9952.00 9480.00 9916.00 10006.00
9962.00 9489.00 9930.00 10020.00
9985.00 9511.00 9950.00 10050.00
10060.00 9582.00 10056.00 10137.00
10088.00 9609.00 10092.00 10172.00
10057.00 9579.00 10040.00 10149.00
10076.00 9597.00 10054.00 10171.00
10046.00 9569.00 10001.00 10125.00
10057.00 9579.00 10027.00 10149.00
10182.00 9698.00 10180.00 10290.00
10290.00 9801.00 10353.00 10431.00
10342.00 9851.00 10415.00 10489.00
10431.00 9935.00 10522.00 10582.00
10598.00 10094.00 10769.00 10768.00
10646.00 10140.00 10833.00 10826.00
10679.00 10171.00 10861.00 10870.00
10738.00 10228.00 10936.00 10935.00
10785.00 10272.00 10999.00 10989.00
10885.00 10368.00 11106.00 11081.00
10997.00 10475.00 11224.00 11179.00
11083.00 10556.00 11325.00 11265.00
11181.00 10650.00 11426.00 11361.00
11102.00 10575.00 11347.00 11313.00
11052.00 10527.00 11315.00 11303.00
11041.00 10516.00 11304.00 11312.00
11046.00 10522.00 11312.00 11336.00
11133.00 10604.00 11409.00 11417.00
11168.00 10638.00 11450.00 11462.00
11189.00 10658.00 11478.00 11501.00
11307.00 10770.00 11604.00 11605.00
11442.00 10898.00 11764.00 11736.00
11532.00 10984.00 11879.00 11827.00
11511.00 10964.00 11849.00 11827.00
11559.00 11010.00 11902.00 11882.00
11576.00 11026.00 11922.00 11910.00
11542.00 10994.00 11893.00 11905.00
11648.00 11095.00 12008.00 12003.00
11714.00 11157.00 12095.00 12084.00
11791.00 11231.00 12190.00 12168.00
11928.00 11361.00 12369.00 12301.00
11919.00 11353.00 12352.00 12313.00
11997.00 11427.00 12466.00 12406.00
12090.00 11516.00 12579.00 12498.00
12095.00 11521.00 12602.00 12528.00
12175.00 11597.00 12696.00 12613.00
12298.00 11714.00 12844.00 12735.00
12283.00 11700.00 12842.00 12747.00
12318.00 11732.00 12892.00 12799.00
12380.00 11792.00 12952.00 12859.00
12445.00 11854.00 13031.00 12927.00
12493.00 11900.00 13107.00 12995.00
12543.00 11947.00 13166.00 13056.00
12713.00 12109.00 13357.00 13220.00
12896.00 12283.00 13596.00 13395.00
12959.00 12343.00 13639.00 13460.00
12912.00 12299.00 13620.00 13448.00
12959.00 12343.00 13671.00 13495.00
13003.00 12385.00 13739.00 13549.00
12901.00 12289.00 13615.00 13483.00
12990.00 12373.00 13727.00 13576.00
13016.00 12398.00 13772.00 13619.00
12981.00 12365.00 13719.00 13611.00
13023.00 12404.00 13758.00 13653.00
13050.00 12430.00 13774.00 13697.00
13062.00 12441.00 13801.00 13737.00
13138.00 12514.00 13913.00 13826.00
13152.00 12527.00 13945.00 13864.00
13165.00 12540.00 13967.00 13890.00
13190.00 12564.00 13970.00 13909.00
13178.00 12552.00 13939.00 13904.00
13260.00 12630.00 14038.00 13997.00
13313.00 12681.00 14148.00 14084.00
13349.00 12715.00 14158.00 14120.00
13404.00 12767.00 14199.00 14178.00
13508.00 12867.00 14386.00 14326.00
13565.00 12921.00 14488.00 14416.00
13656.00 13007.00 14623.00 14523.00
13713.00 13062.00 14755.00 14627.00
13772.00 13118.00 14821.00 14706.00
13925.00 13264.00 14992.00 14846.00
14149.00 13477.00 15209.00 15022.00
14323.00 13643.00 15429.00 15210.00
14441.00 13755.00 15550.00 15309.00
14546.00 13855.00 15691.00 15436.00
14562.00 13870.00 15701.00 15478.00
14647.00 13951.00 15793.00 15565.00
14698.00 14000.00 15852.00 15617.00
14923.00 14214.00 16105.00 15792.00
15044.00 14329.00 16223.00 15884.00
15247.00 14523.00 16513.00 16146.00
15433.00 14700.00 16708.00 16299.00
15332.00 14604.00 16608.00 16264.00
15294.00 14568.00 16573.00 16270.00
15351.00 14622.00 16621.00 16303.00
15420.00 14687.00 16724.00 16381.00
15332.00 14604.00 16557.00 16270.00
15517.00 14780.00 16785.00 16452.00
15612.00 14871.00 16915.00 16518.00
15704.00 14958.00 17062.00 16656.00
15797.00 15046.00 17280.00 16859.00
15909.00 15153.00 17427.00 16917.00
16074.00 15311.00 17648.00 17057.00
15988.00 15228.00 17647.00 17096.00
15991.00 15231.00 17615.00 17043.00
16136.00 15370.00 17884.00 17205.00
16156.00 15388.00 17893.00 17204.00
16283.00 15510.00 18051.00 17276.00
16298.00 15524.00 18087.00 17307.00
16362.00 15584.00 18168.00 17340.00
16484.00 15701.00 18363.00 17406.00
16491.00 15708.00 18387.00 17432.00
16248.00 15477.00 18149.00 17338.00
08/31/03 16266.00 15489.00 18167.00 17346.00
MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT COLUMBIAFUNDS.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 August 31,
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
and notes 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.
22
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
TAKING PRECAUTIONS AGAINST HIGHER RATES
Many market observers believe that GDP growth will accelerate during the second
half of the year, possibly to the 4% level. Inflation has not yet been a
problem, but recent upward moves in the prices of oil, gasoline, gold and
industrial materials make us more cautious going forward. While we don't
anticipate a robust recovery, the possibility of higher interest rates has led
us to maintain a higher-than-average cash position so as to reduce the fund's
duration. In the mortgage area, we have sought 15-year mortgages as a means of
keeping our duration low. We believe that this emphasis on short duration will
benefit shareholders should rates rise.
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.
________________________
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.
PORTFOLIO COMPOSITION % of net assets
August 31, 2003
Corporate notes & bonds 32.5
Collateralized mortgage obligations 19.8
Government issues 18.1
Cash, net receivables & payables 17.3
Asset-backed securities 11.5
Commercial mortgage-backed securities 0.8
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
August 31, 2003
(PIE CHART)
Agency 15.2
Aaa 48.7
Aa 10.1
A 13.8
Baa 7.5
Treasury 4.7
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.
AVERAGE ANNUAL TOTAL RETURN As of August 31, 2003 (%)
CLASS A CLASS B CLASS D CLASS G CLASS T CLASS Z
- ------------------------------------------------------------------------------------------------------------------------------------
Inception date 11/1/02 11/1/02 11/1/02 11/1/02 11/1/02 11/6/86
- ------------------------------------------------------------------------------------------------------------------------------------
WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES
CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
8-month
(cumulative) 0.82 -3.95 0.35 -4.62 0.72 -1.30 0.47 -4.50 0.93 -3.84 1.06
- ------------------------------------------------------------------------------------------------------------------------------------
1-year 2.26 -2.59 1.61 -3.38 2.10 0.06 1.82 -3.17 2.39 -2.47 2.56
- ------------------------------------------------------------------------------------------------------------------------------------
5-year 5.05 4.03 4.92 4.59 5.02 4.82 4.96 4.46 5.08 4.06 5.12
- ------------------------------------------------------------------------------------------------------------------------------------
10-year 4.99 4.47 4.92 4.92 4.97 4.86 4.94 4.94 5.00 4.49 5.02
- ------------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN As of June 30, 2003 (%)
CLASS A CLASS B CLASS D CLASS G CLASS T CLASS Z
- ------------------------------------------------------------------------------------------------------------------------------------
Inception date 11/1/02 11/1/02 11/1/02 11/1/02 11/1/02 11/6/86
- ------------------------------------------------------------------------------------------------------------------------------------
WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES SALES
CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
8-month
(cumulative) 3.15 -1.74 2.63 -2.37 3.02 0.97 2.81 -2.19 3.26 -1.64 3.41
- ------------------------------------------------------------------------------------------------------------------------------------
1-year 5.00 0.00 4.47 -0.53 4.87 2.79 4.65 -0.35 5.12 0.11 5.26
- ------------------------------------------------------------------------------------------------------------------------------------
5-year 5.71 4.69 5.60 5.28 5.68 5.48 5.64 5.15 5.73 4.72 5.76
- ------------------------------------------------------------------------------------------------------------------------------------
10-year 5.26 4.75 5.20 5.20 5.24 5.13 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. Effective October 13, 2003,
class D shares are closed to all new investors and new accounts. Existing class
D shareholders will be able to make additional purchases at any time. In
addition, class D sales charge of 1% is waived after October 13, 2003.
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.
23
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
COLUMBIA FIXED INCOME SECURITIES FUND
The Board of Directors for Columbia Fixed Income Securities Fund approved the
change of the fund's fiscal year end from December 31 to August 31. As a result,
this report covers the eight-month period since the last annual report. The next
report you receive will be a report for the six-month period through February
2004.
For the eight-month period ended August 31, 2003, class A shares of Columbia
Fixed Income Securities Fund returned 0.84% without sales charge. By
comparison, the Lehman Aggregate Bond Index and the Lipper Corporate Debt Funds
A Rated Category average returned 1.10% and 1.57%, respectively. 1 At a time
when fixed-income investors sought higher yields from lower quality securities,
the fund's high credit quality standards placed it at a disadvantage with
respect to its peer group, but overall returns were only slightly below the
index.
SHORT-TERM RATES DECLINE, LONG-TERM RATES INCREASE
As the year began, the Federal Reserve Board signaled that it would continue to
provide monetary stimulus as long as the economy remained sluggish. In late
June, following a disappointing 1.4% first-quarter rise in gross domestic
product (GDP), policymakers decided to lower the fed funds rate--the target
overnight interest rate at which commercial banks lend money to one another--by
one quarter of a percentage point, to just 1.00%. Money market rates followed
suit, hitting all-time lows during the summer.
In July, the Fed began to downplay the risk of deflation, and long-term rates,
including mortgage rates, moved sharply higher. Overall, the yield curve
steepened considerably, resulting in a yield differential of more than four
percentage points between 3-month bills and the 30-year Treasury bond.
A RISK TAKER'S MARKET
With money market rates below the level of inflation, there was incentive for
investment and risk-taking. 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, which can invest up to
10% of its assets in these securities, had 5-6% of its assets in the high-yield
sector. This relatively low commitment hurt the fund relative to some of its
peers, because many fixed-income funds allow as much as 20% of assets to be
invested in high-yield securities, even those with ratings as low as single-B.
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 were therefore in high demand
throughout the period. More generally, foreign bonds have done extremely well
thus far in 2003 because of the decline in the dollar, which rewards securities
denominated in other currencies.
POSITIONING THE PORTFOLIO
The fund portfolio remains modestly overweight in corporate bonds. Although the
yield spreads (the yield differential between corporate bonds and Treasury
securities of comparable maturities) have come down substantially, we believe
that corporate bonds can continue to outperform in an environment where
risk-free returns are low. Among other bond sectors, we have maintained an
underweight in straight mortgage pass-throughs and an overweight in asset-backed
securities, including commercial mortgages and collateralized mortgage
obligations (CMOs). The asset-backed sector offers higher yields than Treasuries
without the credit risks associated with the corporate market.
PERFORMANCE OF A $10,000 INVESTMENT
8/31/93 - 8/31/03
WITHOUT SALES CHARGE WITH SALES CHARGE
------------------- -----------------
Class A $ 17,920 $ 17,073
Class B 17,808 17,808
Class D 17,843 17,668
Class Z 18,010 n/a
-------------------------------
GROWTH OF $10,000 OVER 10 YEARS
(MOUNTAIN CHART)
LEHMAN BROTHERS
CLASS A SHARES CLASS A SHARES AGGREGATE BOND
WITHOUT SALES CHARGE WITH SALES CHARGE INDEX
-------------------- ----------------- -----
08/31/93 $10000.00 $ 9525.00 $10000.00
10027.00 9551.00 10027.00
10055.00 9577.00 10064.00
9923.00 9452.00 9979.00
9972.00 9498.00 10032.00
10110.00 9629.00 10168.00
9902.00 9432.00 9991.00
9669.00 9209.00 9744.00
9590.00 9135.00 9666.00
9583.00 9127.00 9665.00
9566.00 9112.00 9644.00
9736.00 9273.00 9836.00
9743.00 9281.00 9848.00
9605.00 9149.00 9703.00
9584.00 9129.00 9694.00
9562.00 9108.00 9673.00
9636.00 9178.00 9740.00
9821.00 9354.00 9932.00
10044.00 9566.00 10169.00
10112.00 9631.00 10231.00
10260.00 9773.00 10374.00
10670.00 10163.00 10776.00
10755.00 10244.00 10854.00
10727.00 10218.00 10830.00
10862.00 10346.00 10961.00
10981.00 10459.00 11068.00
11125.00 10596.00 11212.00
11295.00 10758.00 11380.00
11458.00 10913.00 11539.00
11527.00 10980.00 11615.00
11314.00 10777.00 11413.00
11239.00 10706.00 11333.00
11153.00 10623.00 11270.00
11128.00 10600.00 11247.00
11285.00 10749.00 11398.00
11303.00 10766.00 11429.00
11294.00 10758.00 11409.00
11498.00 10951.00 11608.00
11741.00 11184.00 11866.00
11959.00 11391.00 12068.00
11845.00 11282.00 11956.00
11892.00 11327.00 11993.00
11929.00 11363.00 12023.00
11803.00 11242.00 11890.00
11976.00 11407.00 12068.00
12088.00 11513.00 12183.00
12227.00 11646.00 12328.00
12563.00 11966.00 12661.00
12451.00 11860.00 12553.00
12630.00 12030.00 12738.00
12822.00 12213.00 12922.00
12861.00 12250.00 12982.00
12978.00 12361.00 13113.00
13134.00 12510.00 13281.00
13123.00 12500.00 13270.00
13153.00 12528.00 13315.00
13222.00 12594.00 13384.00
13353.00 12718.00 13512.00
13461.00 12821.00 13626.00
13481.00 12841.00 13655.00
13701.00 13050.00 13878.00
13961.00 13298.00 14202.00
13838.00 13181.00 14127.00
13896.00 13236.00 14208.00
13945.00 13282.00 14250.00
14044.00 13377.00 14351.00
13774.00 13120.00 14100.00
13862.00 13204.00 14178.00
13908.00 13247.00 14223.00
13743.00 13090.00 14098.00
13682.00 13032.00 14053.00
13590.00 12945.00 13992.00
13563.00 12919.00 13985.00
13730.00 13078.00 14148.00
13769.00 13115.00 14200.00
13785.00 13130.00 14199.00
13731.00 13079.00 14130.00
13650.00 13002.00 14084.00
13790.00 13135.00 14254.00
13965.00 13301.00 14442.00
13916.00 13255.00 14401.00
13905.00 13244.00 14393.00
14206.00 13532.00 14693.00
14307.00 13628.00 14826.00
14525.00 13835.00 15041.00
14626.00 13932.00 15136.00
14707.00 14008.00 15236.00
14975.00 14263.00 15486.00
15278.00 14553.00 15774.00
15549.00 14810.00 16033.00
15684.00 14939.00 16172.00
15769.00 15020.00 16253.00
15670.00 14925.00 16185.00
15775.00 15025.00 16282.00
15820.00 15069.00 16344.00
16183.00 15414.00 16710.00
16338.00 15562.00 16902.00
16509.00 15725.00 17100.00
16843.00 16043.00 17457.00
16632.00 15842.00 17216.00
16521.00 15736.00 17106.00
16622.00 15832.00 17245.00
16756.00 15960.00 17412.00
16520.00 15735.00 17123.00
16826.00 16027.00 17455.00
16954.00 16148.00 17603.00
17016.00 16208.00 17755.00
17180.00 16364.00 17970.00
17473.00 16643.00 18273.00
17729.00 16886.00 18569.00
17523.00 16691.00 18484.00
17504.00 16672.00 18478.00
17770.00 16926.00 18861.00
17791.00 16946.00 18878.00
18038.00 17182.00 19138.00
18026.00 17169.00 19123.00
18161.00 17298.00 19282.00
18451.00 17575.00 19640.00
18392.00 17519.00 19601.00
17806.00 16960.00 18942.00
08/31/03 17920.00 17073.00 19067.00
MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT COLUMBIAFUNDS.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 August 31,
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.
24
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
PROSPECTS FOR A STRONGER ECONOMY
Given the economy's improvement during the second quarter, most economic
analysts are anticipating that GDP growth will come in between 3% and 4% for the
second half of this year. 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.
________________
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.
PORTFOLIO COMPOSITION % of net assets
August 31, 2003
Government issues 44.0
Corporate notes & bonds 40.8
Asset-backed securities 7.3
Collateralized mortgage obligations (CMO) 5.9
Cash, net receivables & payables 1.4
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
August 31, 2003
(PIE CHART)
Treasury/Agency 44.7
AAA 15.0
AA 9.9
A 14.7
BBB 10.0
BB 3.1
B 2.6
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.
AVERAGE ANNUAL TOTAL RETURN As of August 31, 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
- --------------------------------------------------------------------------------------------------------------------------
8-month (cumulative) 0.84 -3.92 0.34 -4.59 0.51 -1.50 1.26
- --------------------------------------------------------------------------------------------------------------------------
1-year 2.54 -2.31 1.90 -3.04 2.10 0.07 3.06
- --------------------------------------------------------------------------------------------------------------------------
5-year 5.52 4.49 5.39 5.07 5.43 5.21 5.62
- --------------------------------------------------------------------------------------------------------------------------
10-year 6.01 5.49 5.94 5.94 5.96 5.86 6.06
- --------------------------------------------------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------------------------------------------------
8-month (cumulative) 4.96 -0.03 4.43 -0.57 4.58 2.52 5.37
- --------------------------------------------------------------------------------------------------------------------------
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. Effective October
13, 2003, class D shares are closed to all new investors and new accounts.
Existing class D shareholders will be able to make additional purchases at any
time. In addition, class D sales charge of 1% is waived after October 13, 2003.
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.
25
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
COLUMBIA NATIONAL MUNICIPAL BOND FUND
The Board of Directors for Columbia National Municipal Bond Fund approved the
change of the fund's fiscal year end from December 31 to August 31. As a result,
this report covers the eight-month period since the last annual report. The next
report you receive will be a report for the six-month period through February
2004.
For the eight-month period ended August 31, 2003, class A shares of
Columbia National Municipal Bond Fund returned 0.75% without sales charge. Over
the same period the Lehman Brothers Municipal Bond Index returned 0.93%. The
fund outperformed the Lipper General Municipal Debt Funds Category average,
which was 0.38%. 1
The fund's performance rose and fell relative to its benchmark as conditions
either favored or punished its overweight in intermediate maturities. The fund
outperformed during the first quarter of 2003 and during the month of July and
underperformed during the second quarter of 2003 and the month of August.
BOND PRICES STALLED, THEN MOVED HIGHER
After a lackluster first quarter, bond prices rose strongly in the second
quarter of 2003, buoyed by military success in Iraq and a strong pro-growth,
anti-inflation stance from the Federal Reserve Board. During this period,
municipal yields fell across all maturities, and intermediate and long
maturities outperformed shorter issues. However, conditions changed markedly
during July when Treasury yields rose by as much as one percentage point, and
municipal yields rose by approximately three-quarters of a percentage point.
Intermediate-term maturities experienced the greatest increase in yield while
short-term interest rates were relatively steady.
The municipal market continues to experience solid demand, but issuance --
which had been heavy for most of the period -- lightened somewhat during July
and August. Economic growth and the progress of the recovery remained
disappointing. As in any economic slowdown, municipalities experienced a
deterioration in their finances as state and local tax receipts continued to be
down from prior years. Many states are on watch for credit downgrades with major
ratings agencies. This negative outlook reflects a decline in state revenues,
which has resulted from the economic downturn, and a stubbornly high
unemployment rate.
A POSITIVE OUTLOOK ON ECONOMIC GROWTH AND MUNICIPAL FINANCES
Despite recently lowered income tax rates, we believe municipals remain
attractive, especially for highly-taxed investors. And, we expect
PERFORMANCE OF A $10,000 INVESTMENT
2/24/99 - 8/31/03
WITHOUT SALES CHARGE WITH SALES CHARGE
-------------------- -----------------
Class A $ 12,296 $ 11,711
Class B 12,221 12,021
Class D 12,252 12,131
Class Z 12,331 n/a
---------------------------------
GROWTH OF $10,000 SINCE INCEPTION
(MOUNTAIN CHART)
CLASS A SHARES CLASS A SHARES LEHMAN BROTHERS
WITHOUT SALES CHARGE WITH SALES CHARGE MUNICIPAL BOND INDEX
-------------------- ----------------- --------------------
02/24/99 $10000.00 $ 9525.00 $10000.00
9934.00 9462.00 10014.00
9920.00 9449.00 10039.00
9951.00 9478.00 9981.00
9893.00 9423.00 9837.00
9733.00 9271.00 9872.00
9768.00 9304.00 9794.00
9671.00 9212.00 9797.00
9675.00 9216.00 9692.00
9567.00 9112.00 9794.00
9674.00 9214.00 9721.00
9608.00 9152.00 9678.00
9543.00 9089.00 9790.00
9641.00 9183.00 10004.00
9868.00 9399.00 9945.00
9791.00 9326.00 9893.00
9714.00 9253.00 10155.00
9985.00 9511.00 10296.00
10110.00 9630.00 10455.00
10267.00 9779.00 10401.00
10209.00 9724.00 10514.00
10336.00 9845.00 10594.00
10407.00 9913.00 10856.00
10654.00 10148.00 10963.00
10749.00 10238.00 10998.00
10765.00 10253.00 11097.00
10861.00 10345.00 10977.00
10737.00 10227.00 11096.00
10844.00 10329.00 11170.00
10918.00 10399.00 11335.00
11082.00 10555.00 11522.00
11256.00 10721.00 11483.00
11216.00 10684.00 11620.00
11346.00 10807.00 11522.00
11217.00 10684.00 11413.00
11097.00 10570.00 11610.00
11297.00 10760.00 11750.00
11426.00 10883.00 11519.00
11205.00 10673.00 11744.00
11454.00 10910.00 11816.00
11517.00 10970.00 11941.00
11649.00 11096.00 12095.00
11818.00 11257.00 12240.00
11952.00 11384.00 12508.00
12236.00 11655.00 12300.00
12017.00 11446.00 12249.00
11950.00 11382.00 12507.00
12209.00 11629.00 12476.00
12137.00 11561.00 12651.00
12328.00 11742.00 12658.00
12339.00 11753.00 12742.00
12431.00 11841.00 13040.00
12733.00 12129.00 12985.00
12665.00 12063.00 12531.00
12210.00 11630.00 12626.00
08/31/03 12296.00 11711.00
MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT COLUMBIAFUNDS.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, indexes 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.
26
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
economic growth -- and therefore municipal finances -- to continue to improve.
As always, the fund is managed to generate 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 maintaining an intermediate
average maturity of 7 to 10 years. The fund continues to focus on high-quality
issues diversified nationally across both 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.
____________________
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.
TOP TEN STATES % of net assets
August 31, 2003
Washington 14.5
Oregon 14.2
Illinois 12.3
Texas 9.0
Michigan 4.8
Tennessee 4.0
Indiana 4.0
Wisconsin 3.7
New York 3.5
Louisiana 3.5
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 portfolio holdings
August 31, 2003
(PIE CHART)
Aaa 61.2
Aa 14.9
A 7.1
Baa 2.4
Not Rated 14.4
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.
AVERAGE ANNUAL TOTAL RETURN As of August 31, 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
- ----------------------------------------------------------------------------------------------------------------
8-month (cumulative) 0.75 -4.04 0.25 -4.67 0.47 -1.48 1.00
- ----------------------------------------------------------------------------------------------------------------
1-year 2.91 -1.98 2.28 -2.66 2.54 0.57 3.20
- ----------------------------------------------------------------------------------------------------------------
Life 4.68 3.56 4.54 4.16 4.60 4.37 4.75
- ----------------------------------------------------------------------------------------------------------------
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
- ----------------------------------------------------------------------------------------------------------------
8-month (cumulative) 5.38 0.37 4.87 -0.13 5.09 3.08 5.67
- ----------------------------------------------------------------------------------------------------------------
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. Effective October
13, 2003, class D shares are closed to all new investors and new accounts.
Existing class D shareholders will be able to make additional purchases at any
time. In addition, class D sales charge of 1% is waived after October 13, 2003.
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.
27
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
COLUMBIA OREGON MUNICIPAL BOND FUND
The Board of Directors for Columbia Oregon Municipal Bond Fund approved the
change of the fund's fiscal year end from December 31 to August 31. As a result,
this report covers the eight-month period since the last annual report. The next
report you receive will be a report for the six-month period through February
2004.
For the eight-month period ended August 31, 2003, class A shares of
Columbia Oregon Municipal Bond Fund returned 0.56% without sales charge. Over
the same period the Lehman Brothers General Obligation Bond Index returned
1.29%. The fund's return fell just short of the Lipper Oregon Municipal Debt
Funds Category average, which was 0.76%. 1
The fund's performance over the eight-month period rose and fell relative
to its benchmark as conditions either favored or punished its overweight in
intermediate maturities. The fund outperformed during the first quarter of 2003
and the month of July and underperformed during the second quarter of 2003 and
the month of August.
BOND PRICES STALLED, THEN MOVED HIGHER
After a lackluster first quarter, bond prices rose strongly in the second
quarter, buoyed by military success in Iraq and a strong pro-growth,
anti-inflation stance from the Federal Reserve Board. During this period,
municipal yields fell across maturities, and intermediate and long maturities
outperformed shorter issues. However, conditions changed markedly during July
when Treasury yields rose by as much as one percentage point and municipal
yields by three-quarters of a percentage point. Short rates were steady.
The municipal market continues to experience solid demand, but issuance --
which had been heavy for most of the period -- lightened somewhat during July
and August. Economic growth and the progress of the recovery remained
disappointing. As in any economic slowdown, municipalities saw a deterioration
in their finances as state and local tax receipts have been far below those of
prior years. Many states are on watch for credit downgrades from major ratings
agencies, including the general obligation debt of the State of Oregon. This
negative outlook reflects a decline in state revenues, which has resulted from
the economic downturn, as well as a stubbornly high unemployment rate. Depending
on the measures taken by legislators to deal with the budget shortfall, the
rating agencies could downgrade state debt from AA to A. Although 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,
prices would tend to decline slightly, all other factors being equal.
A POSITIVE OUTLOOK ON ECONOMIC GROWTH AND MUNICIPAL FINANCES
Despite recently lowered income tax rates, we believe municipals remain
attractive, especially for highly-taxed investors. And, we expect economic
growth -- and therefore municipal finances -- to continue to improve. As always,
the fund is managed to generate strong risk-adjusted long-term total return. We
will continue to look for opportunities to extend the maturity of
PERFORMANCE OF A $10,000 INVESTMENT
8/31/93 - 8/31/03
WITHOUT SALES CHARGE WITH SALES CHARGE
-------------------- -----------------
Class A $16,233 $15,457
Class B 16,135 16,135
Class D 16,186 16,023
Class Z 16,295 n/a
----------------------------
GROWTH OF $10,000 OVER 10 YEARS
(MOUNTAIN CHART)
LEHMAN BROTHERS
CLASS A SHARES CLASS A SHARES GENERAL OBLIGATION
WITHOUT SALES CHARGE WITH SALES CHARGE BOND INDEX
-------------------- ----------------- ----------
08/31/93 $10000.00 $ 9525.00 $10000.00
10113.00 9633.00 10106.00
10117.00 9636.00 10119.00
10048.00 9571.00 10050.00
10203.00 9718.00 10258.00
10295.00 9806.00 10377.00
10052.00 9574.00 10099.00
9692.00 9232.00 9728.00
9743.00 9281.00 9833.00
9813.00 9346.00 9908.00
9765.00 9302.00 9849.00
9909.00 9438.00 10004.00
9946.00 9473.00 10047.00
9814.00 9348.00 9906.00
9693.00 9232.00 9763.00
9536.00 9083.00 9610.00
9725.00 9263.00 9780.00
9959.00 9486.00 10012.00
10180.00 9696.00 10276.00
10287.00 9798.00 10416.00
10298.00 9809.00 10422.00
10551.00 10050.00 10734.00
10467.00 9970.00 10661.00
10557.00 10056.00 10784.00
10691.00 10183.00 10921.00
10763.00 10252.00 10991.00
10889.00 10371.00 11117.00
11040.00 10516.00 11273.00
11104.00 10577.00 11362.00
11168.00 10638.00 11473.00
11113.00 10585.00 11420.00
10996.00 10474.00 11293.00
10951.00 10431.00 11254.00
10943.00 10423.00 11236.00
11053.00 10528.00 11349.00
11145.00 10616.00 11456.00
11147.00 10617.00 11455.00
11276.00 10740.00 11594.00
11389.00 10848.00 11729.00
11566.00 11017.00 11947.00
11520.00 10973.00 11899.00
11550.00 11001.00 11931.00
11642.00 11089.00 12040.00
11519.00 10972.00 11885.00
11595.00 11044.00 11977.00
11731.00 11173.00 12156.00
11836.00 11274.00 12287.00
12138.00 11562.00 12605.00
12060.00 11488.00 12494.00
12187.00 11608.00 12637.00
12247.00 11665.00 12706.00
12304.00 11720.00 12767.00
12483.00 11890.00 12949.00
12603.00 12004.00 13082.00
12587.00 11990.00 13092.00
12577.00 11980.00 13104.00
12535.00 11939.00 13035.00
12716.00 12112.00 13250.00
12744.00 12139.00 13298.00
12774.00 12167.00 13328.00
12967.00 12351.00 13539.00
13127.00 12504.00 13719.00
13105.00 12483.00 13722.00
13144.00 12520.00 13767.00
13178.00 12553.00 13812.00
13345.00 12711.00 13993.00
13242.00 12613.00 13922.00
13250.00 12620.00 13927.00
13288.00 12657.00 13965.00
13167.00 12542.00 13887.00
12980.00 12364.00 13683.00
13031.00 12412.00 13736.00
12919.00 12305.00 13655.00
12925.00 12311.00 13667.00
12792.00 12185.00 13550.00
12920.00 12306.00 13688.00
12828.00 12219.00 13602.00
12749.00 12143.00 13551.00
12856.00 12245.00 13687.00
13123.00 12500.00 13963.00
13052.00 12432.00 13892.00
12971.00 12355.00 13818.00
13285.00 12654.00 14175.00
13466.00 12826.00 14362.00
13671.00 13021.00 14567.00
13598.00 12952.00 14495.00
13747.00 13094.00 14647.00
13836.00 13179.00 14749.00
14146.00 13474.00 15097.00
14307.00 13627.00 15261.00
14347.00 13666.00 15306.00
14463.00 13776.00 15441.00
14307.00 13628.00 15282.00
14460.00 13773.00 15436.00
14551.00 13860.00 15532.00
14752.00 14051.00 15753.00
14990.00 14278.00 16006.00
14949.00 14239.00 15971.00
15139.00 14420.00 16135.00
14965.00 14254.00 15993.00
14788.00 14086.00 15866.00
15029.00 14315.00 16126.00
15205.00 14483.00 16322.00
14932.00 14222.00 16011.00
15224.00 14501.00 16341.00
15320.00 14592.00 16430.00
15501.00 14765.00 16614.00
15709.00 14962.00 16819.00
15894.00 15139.00 17010.00
16242.00 15471.00 17356.00
15945.00 15187.00 17075.00
15824.00 15072.00 16991.00
16135.00 15369.00 17324.00
16072.00 15309.00 17295.00
16322.00 15546.00 17533.00
16308.00 15534.00 17567.00
16423.00 15643.00 17679.00
16812.00 16013.00 18070.00
16719.00 15925.00 17983.00
16123.00 15357.00 17386.00
08/31/03 16233.00 15457.00 17542.00
MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT COLUMBIAFUNDS.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 August 31,1993
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.
28
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
holdings from very short-term issues out to intermediate issues, maintaining an
intermediate average maturity of 7 to 10 years. The fund continues to focus on
high quality issues diversified across both counties and sectors within the
State of 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.
_________________
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.
PORTFOLIO COMPOSITION % of net assets
August 31, 2003 (unaudited)
Revenue 35.0
Insured revenue 20.1
General obligations 18.6
Insured general obligations 13.9
State of Oregon general obligations 5.1
Other bonds 4.8
Cash, net receivables & payables 1.8
Pre-refunded bonds 0.5
U.S. territories bonds 0.2
----------------------------------
PORTFOLIO QUALITY % of portfolio holdings
August 31, 2003
(PIE CHART)
Aaa 37.6
Aa 39.7
A 7.4
Baa 4.6
Not Rated 10.7
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.
AVERAGE ANNUAL TOTAL RETURN As of August 31, 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
- --------------------------------------------------------------------------------------------------------------------
8-month (cumulative) 0.56 -4.21 0.05 -4.85 0.32 -1.65 0.83
- --------------------------------------------------------------------------------------------------------------------
1-year 2.09 -2.79 1.47 -3.40 1.79 -0.21 2.48
- --------------------------------------------------------------------------------------------------------------------
5-year 4.59 3.58 4.47 4.14 4.53 4.32 4.67
- --------------------------------------------------------------------------------------------------------------------
10-year 4.96 4.45 4.90 4.90 4.93 4.83 5.00
- --------------------------------------------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------------------------------------------
8-month (cumulative) 4.85 -0.13 4.36 -0.64 4.62 2.58 5.18
- --------------------------------------------------------------------------------------------------------------------
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 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. Effective October
13, 2003, class D shares are closed to all new investors and new accounts.
Existing class D shareholders will be able to make additional purchases at any
time. In addition, class D sales charge of 1% is waived after October 13, 2003.
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.
29
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
COLUMBIA HIGH YIELD FUND
The Board of Directors for Columbia High Yield Fund approved the change of the
fund's fiscal year end from December 31 to August 31. As a result, this report
covers the eight-month period since the last annual report. The next report you
receive will be a report for the six-month period through February 2004.
For the eight-month period ended August 31, 2003, Columbia High Yield Fund
class A shares returned 5.81% without sales charge. The fund lagged the Merrill
Lynch US High Yield, Cash Pay Only Index, which returned 17.08%. The fund's
emphasis on high quality, high-yield bonds proved detrimental to performance as
lower quality bonds rallied strongly early in the period.
In the cable industry, the fund lagged because we did not own a position in
Charter Communications, the industry's largest issuer and also one of its
strongest performers during the period. However, our investments in CSC Holdings
(1.1% of net assets) 1 and Mediacom (0.8% of net assets), contributed to the
fund's positive performance. In the cable industry, we sold our position in TCI
International, reduced our position in MediaCom and purchased a position in
DirecTV Holdings (1.4% of net assets). Satellite TV continues to take market
share from cable companies so we wanted to gain exposure to this segment of the
market, while reducing our exposure to the traditional cable companies.
CREDIT RESEARCH DRIVES SECURITY SELECTION
We focused our research on identifying companies with strong business prospects
and improving margins. In this regard, we added to our position in Corrections
Corp. of America, the country's largest provider of corrections management (1.9%
of net assets).
Outsourcing has proven to be a successful way to manage rising costs associated
with the nation's prison systems. We also increased our exposure in the
aerospace industry with the purchase of TD Funding (1.0% of net assets). In the
final months of the period, we added positions in Acetex, a Canadian chemical
manufacturer, and Wabtec (formerly Westinghouse Air Brake), an equipment
producer for locomotives, freight cars and passenger transit vehicles (0.6% and
0.6% of net assets, respectively).
We funded these additions to the portfolio by eliminating selected
positions from the portfolio. For example, in the hotel and leisure sector, we
sold both Six Flags and Host Marriott because we believed that they had achieved
fair value. We also eliminated our position in Winn-Dixie Stores, a food
retailer located in the southeastern United States. In our opinion, Winn-Dixie
lacks a clear business plan in the face of declining market share. Concerns over
increased industry competition also prompted us to sell Playtex Products, in the
consumer goods sector. Finally, we eliminated our position in ConStar
International, one of North America's largest plastic container manufacturers,
following disappointing performance.
PERFORMANCE OF A $10,000 INVESTMENT
10/01/93 - 8/31/03
WITHOUT SALES CHARGE WITH SALES CHARGE
-------------------- -----------------
Class A $19,105 $18,195
Class B 18,965 18,965
Class D 18,996 18,808
Class Z 19,160 n/a
--------------------------
GROWTH OF $10,000
SINCE INCEPTION
(MOUNTAIN CHART)
MERRILL LYNCH
CLASS A SHARES CLASS A SHARES US HIGH YIELD,
WITHOUT SALES CHARGE WITH SALES CHARGE CASH PAY ONLY INDEX
-------------------- ----------------- -------------------
10/01/93 $10000.00 $ 9525.00 $10000.00
9992.00 9517.00 10180.00
10015.00 9539.00 10236.00
10112.00 9632.00 10338.00
10251.00 9764.00 10565.00
10221.00 9735.00 10489.00
9909.00 9439.00 10147.00
9738.00 9275.00 10028.00
9819.00 9352.00 9992.00
9845.00 9377.00 10029.00
9905.00 9435.00 10099.00
9968.00 9494.00 10169.00
10017.00 9542.00 10165.00
10028.00 9552.00 10190.00
9917.00 9446.00 10104.00
10019.00 9543.00 10216.00
10176.00 9692.00 10360.00
10426.00 9931.00 10683.00
10521.00 10021.00 10831.00
10756.00 10245.00 11085.00
11029.00 10505.00 11431.00
11105.00 10577.00 11518.00
11258.00 10723.00 11649.00
11278.00 10742.00 11720.00
11461.00 10916.00 11854.00
11612.00 11061.00 11938.00
11745.00 11187.00 12055.00
11934.00 11367.00 12249.00
12099.00 11525.00 12442.00
12139.00 11563.00 12461.00
12002.00 11432.00 12427.00
11985.00 11416.00 12434.00
11996.00 11426.00 12523.00
12030.00 11458.00 12598.00
12119.00 11543.00 12684.00
12349.00 11763.00 12815.00
12563.00 11966.00 13090.00
12701.00 12098.00 13234.00
12968.00 12352.00 13501.00
13060.00 12439.00 13605.00
13175.00 12549.00 13710.00
13375.00 12740.00 13902.00
13173.00 12547.00 13748.00
13328.00 12695.00 13904.00
13648.00 13000.00 14185.00
13820.00 13164.00 14401.00
14192.00 13518.00 14747.00
14179.00 13506.00 14721.00
14369.00 13687.00 14966.00
14356.00 13674.00 15065.00
14520.00 13830.00 15208.00
14717.00 14018.00 15352.00
14957.00 14247.00 15581.00
15046.00 14331.00 15645.00
15139.00 14420.00 15779.00
15215.00 14492.00 15854.00
15262.00 14537.00 15965.00
15370.00 14640.00 16044.00
15558.00 14819.00 16136.00
14940.00 14230.00 15439.00
15204.00 14482.00 15470.00
15131.00 14413.00 15216.00
15631.00 14888.00 15908.00
15635.00 14893.00 15913.00
15828.00 15076.00 16071.00
15741.00 14993.00 15948.00
15928.00 15171.00 16086.00
16041.00 15279.00 16337.00
15834.00 15082.00 16224.00
15785.00 15035.00 16193.00
15769.00 15020.00 16217.00
15681.00 14936.00 16052.00
15664.00 14920.00 15991.00
15667.00 14923.00 15897.00
15922.00 15166.00 16078.00
16007.00 15246.00 16161.00
15925.00 15169.00 16081.00
15939.00 15182.00 16095.00
15848.00 15096.00 15870.00
15921.00 15165.00 15874.00
15912.00 15156.00 15700.00
16246.00 15474.00 15968.00
16392.00 15614.00 16083.00
16669.00 15877.00 16279.00
16669.00 15877.00 16185.00
16529.00 15744.00 15711.00
16293.00 15519.00 15219.00
16744.00 15949.00 15549.00
17318.00 16496.00 16476.00
17464.00 16634.00 16736.00
17373.00 16548.00 16515.00
17331.00 16508.00 16335.00
17444.00 16615.00 16649.00
17291.00 16469.00 16306.00
17500.00 16669.00 16559.00
17727.00 16885.00 16719.00
17034.00 16225.00 15648.00
17618.00 16782.00 16108.00
18080.00 17221.00 16631.00
17856.00 17008.00 16513.00
17963.00 17110.00 16606.00
17799.00 16954.00 16446.00
17967.00 17113.00 16838.00
18051.00 17194.00 17105.00
18015.00 17159.00 17013.00
17558.00 16724.00 15803.00
17266.00 16446.00 15174.00
17534.00 16701.00 15554.00
17465.00 16636.00 15314.00
17443.00 16614.00 15175.00
17935.00 17083.00 16079.00
18053.00 17195.00 16324.00
18210.00 17345.00 16794.00
18354.00 17482.00 17011.00
18669.00 17783.00 17451.00
19093.00 18186.00 18432.00
19109.00 18201.00 18631.00
19342.00 18423.00 19140.00
18974.00 18073.00 18866.00
08/31/03 19105.00 18195.00 19118.00
MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT COLUMBIAFUNDS.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 October 1, 1993.
30
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
A CONTINUING FOCUS ON HIGHER QUALITY
We believe that lower-quality, high-yield issues may continue to rally as the
economy strengthens and fewer issues default. However, we remain concerned about
the long-term prospects for these companies and their ability to sustain the
level of performance exhibited over the past six months. We expect to continue
our focus on higher quality issues--those with strong balance sheets, solid
operations and higher credit ratings.
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.
_____________________
1 Holdings are disclosed as of August 31, 2003 and are subject to change.
TOP FIVE SECTORS % of net assets
August 31, 2003
Energy 10.1
Health care 8.3
Casinos & gaming 6.3
Cable TV 5.8
Services 5.3
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
August 31, 2003
(PIE CHART)
Ba 55.9
B 42.4
Baa 1.7
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.
AVERAGE ANNUAL TOTAL RETURN As of August 31, 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
- ----------------------------------------------------------------------------------------------------------------
8-month (cumulative) 5.81 0.75 5.20 0.20 5.35 3.36 6.04
- ----------------------------------------------------------------------------------------------------------------
1-year 8.94 3.82 8.14 3.14 8.32 6.30 9.26
- --------------------------------------------------------------------------------------------------------------
5-year 5.04 4.03 4.88 4.59 4.92 4.70 5.10
- ----------------------------------------------------------------------------------------------------------------
Life 6.75 6.22 6.67 6.67 6.69 6.58 6.78
- ----------------------------------------------------------------------------------------------------------------
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
- ----------------------------------------------------------------------------------------------------------------
8-month (cumulative) 10.89 5.59 10.24 5.24 10.38 8.32 11.17
- ----------------------------------------------------------------------------------------------------------------
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
- ----------------------------------------------------------------------------------------------------------------
Life 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. Effective October
13, 2003, class D shares are closed to all new investors and new accounts.
Existing class D shareholders will be able to make additional purchases at any
time. In addition, class D sales charge of 1% is waived after October 13, 2003.
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.
31
INVESTMENT REVIEWS
- --------------------------------------------------------------------------------
COLUMBIA DAILY INCOME COMPANY
PERFORMANCE OF A $10,000 INVESTMENT
8/31/93 - 8/31/03
WITHOUT
SALES CHARGE
------------
Class Z $14,949
---------------------------
GROWTH OF $10,000
OVER 10 YEARS
(MOUNTAIN CHART)
CONSUMER
CLASS Z SHARES PRICE INDEX
-------------- -----------
08/31/93 $10000.00 $10000.00
10020.00 10021.00
10041.00 10062.00
10061.00 10069.00
10082.00 10069.00
10104.00 10096.00
10124.00 10131.00
10147.00 10165.00
10171.00 10179.00
10200.00 10186.00
10230.00 10221.00
10263.00 10249.00
10298.00 10290.00
10333.00 10317.00
10371.00 10325.00
10411.00 10338.00
10455.00 10338.00
10502.00 10379.00
10547.00 10421.00
10596.00 10455.00
10645.00 10490.00
10695.00 10511.00
10743.00 10532.00
10792.00 10532.00
10841.00 10559.00
10888.00 10580.00
10936.00 10615.00
10983.00 10608.00
11031.00 10600.00
11078.00 10663.00
11122.00 10697.00
11166.00 10753.00
11210.00 10795.00
11254.00 10815.00
11298.00 10822.00
11345.00 10842.00
11391.00 10863.00
11437.00 10898.00
11484.00 10932.00
11530.00 10953.00
11577.00 10953.00
11624.00 10988.00
11667.00 11022.00
11715.00 11050.00
11762.00 11064.00
11811.00 11058.00
11861.00 11071.00
11912.00 11084.00
11963.00 11105.00
12012.00 11133.00
12064.00 11161.00
12115.00 11154.00
12168.00 11141.00
12221.00 11162.00
12269.00 11183.00
12321.00 11204.00
12371.00 11225.00
12423.00 11245.00
12474.00 11258.00
12528.00 11272.00
12582.00 11285.00
12634.00 11299.00
12687.00 11326.00
12737.00 11326.00
12788.00 11319.00
12838.00 11346.00
12881.00 11360.00
12929.00 11394.00
12976.00 11477.00
13024.00 11477.00
13070.00 11477.00
13120.00 11512.00
13171.00 11539.00
13223.00 11595.00
13277.00 11615.00
13331.00 11622.00
13391.00 11622.00
13453.00 11650.00
13509.00 11719.00
13572.00 11815.00
13633.00 11822.00
13699.00 11829.00
13767.00 11898.00
13838.00 11918.00
13910.00 11932.00
13980.00 11995.00
14052.00 12015.00
14123.00 12022.00
14195.00 12015.00
14266.00 12091.00
14324.00 12139.00
14384.00 12167.00
14437.00 12216.00
14487.00 12271.00
14531.00 12291.00
14574.00 12257.00
14613.00 12257.00
14648.00 12312.00
14677.00 12270.00
14701.00 12249.00
14721.00 12202.00
14739.00 12230.00
14754.00 12279.00
14770.00 12347.00
14785.00 12417.00
14800.00 12417.00
14814.00 12424.00
14829.00 12431.00
14844.00 12479.00
14857.00 12500.00
14871.00 12521.00
14883.00 12521.00
14895.00 12494.00
14903.00 12549.00
14911.00 12645.00
14918.00 12721.00
14926.00 12693.00
14935.00 12673.00
14942.00 12687.00
14948.00 12701.00
08/31/03 14949.00 12748.00
MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT COLUMBIAFUNDS.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 August 31,
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.
PORTFOLIO HIGHLIGHTS
8/31/03
Seven day current yield 0.41%
Seven day effective yield 0.41%
Average days to maturity 38
The Board of Directors for Columbia Daily Income Company approved the change of
the fund's fiscal year end from December 31 to August 31. As a result, this
report covers the eight-month period since the last annual report. The next
report you receive will be a report for the six-month period through February
2004.
For the eight-month period ended August 31, 2003, Columbia Daily Income
Company class Z shares returned 0.40%. Short-term interest rates were low
throughout the period, and in June they were pushed even lower when 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 has sought to keep short-term rates low in order to
stimulate the economy as well as to encourage long-term investment. While lower
short-term rates have been welcomed by consumers and businesses, their effect on
money market funds has been to bring returns on eligible portfolio securities to
all-time lows.
OPERATING WITHIN A LOW-RATE ENVIRONMENT
Despite declining short-term rates, we have remained committed to our universe
of government and corporate obligations bearing the highest possible ratings
(A1/P1). During the summer we reduced our exposure to government agency credits
in response to well-publicized management difficulties at Federal Home Loan
Mortgage Corporation--"Freddie Mac." At the end of August, 20% of the portfolio
was invested in government agency securities, down from 25% at the end of June.
The remainder of the portfolio is invested in high-quality commercial paper. 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. If short-term rates rise going forward, we expect
shareholders to benefit from the fund's ability to reinvest at higher rates.
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 August 31, 2003 (%)
COLUMBIA CONSUMER PRICE
DAILY INCOME COMPANY INDEX
CLASS Z (INFLATION)
- ----------------------------------------------------
8-month 0.40 2.05
- ----------------------------------------------------
1-year 0.75 2.16
- ----------------------------------------------------
5-year 3.51 2.47
- ----------------------------------------------------
10-year 4.10 2.46
- ----------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
As of June 30, 2003 (%)
COLUMBIA CONSUMER PRICE
DAILY INCOME COMPANY INDEX
CLASS Z (INFLATION)
- ---------------------------------------------------------
8-month 0.49 1.32
- ---------------------------------------------------------
1-year 0.87 2.11
- ---------------------------------------------------------
5-year 3.67 2.42
- ---------------------------------------------------------
10-year 4.14 2.44
- ---------------------------------------------------------
32
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA COMMON STOCK FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS A SHARES 2003(a) 2002(b)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD .................... $ 14.91 $ 15.09
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (c) ...................... 0.01 --(d)
Net realized and unrealized gain (loss) on
investments ......................................... 2.30 (0.11)
------------ ------------
Total from investment operations .................... 2.31 (0.11)
------------ ------------
LESS DISTRIBUTIONS:
From net investment income ............................ -- (0.07)
------------ ------------
NET ASSET VALUE, END OF PERIOD .......................... $ 17.22 $ 14.91
------------ ------------
TOTAL RETURN (e)(f) ..................................... 15.49% (0.71)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ................ $ 223 $ 32
Ratio of expenses to average net assets (g)(h) .......... 1.40% 1.32%
Ratio of net investment income (loss) to average net
assets (g)(h) .......................................... 0.08% (0.03)%
Portfolio turnover rate ................................. 102%(f) 107%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class A shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Rounds to less than $0.01 per share.
(e) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(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.
COLUMBIA COMMON STOCK FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS B SHARES 2003(a) 2002(b)
------------ -----------
NET ASSET VALUE, BEGINNING OF PERIOD ........ $ 14.91 $ 15.09
------------ -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) ................... (0.09) (0.01)
Net realized and unrealized gain
(loss) on investments .................... 2.30 (0.12)
------------ -----------
Total from investment operations ........ 2.21 (0.13)
------------ -----------
LESS DISTRIBUTIONS:
From net investment income ................ -- (0.05)
NET ASSET VALUE, END OF PERIOD .............. $ 17.12 $ 14.91
------------ -----------
TOTAL RETURN (d)(e) ......................... 14.82% (0.84)%
------------ -----------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .... $ 620 $ 109
Ratio of expenses to average net
assets(f)(g) ................................ 2.36% 2.07%
Ratio of net investment loss to average net
assets (f)(g) .............................. (0.90)% (0.78)%
Portfolio turnover rate ..................... 102%(e) 107%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class B shares were initially offered on November 1, 2002. Per share data
and total return 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 and
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.
See Accompanying Notes to Financial Statements
33
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA COMMON STOCK FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS D SHARES 2003(a) 2002(b)
------------ ------------
Net asset value, beginning of period .................... $ 14.92 $ 15.09
------------ ------------
Income from investment operations:
Net investment loss (c) ............................... (0.12) (0.01)
Net realized and unrealized gain (loss) on investments 2.31 (0.11)
------------ ------------
Total from investment operations ..................... 2.19 (0.12)
------------ ------------
Less distributions:
From net investment income ............................ -- (0.05)
------------ ------------
Net asset value, end of period .......................... $ 17.11 $ 14.92
------------ ------------
Total return (d)(e) ..................................... 14.68% (0.77)%
Ratios/Supplemental data:
Net assets, end of period (in thousands) ................ $ 112 $ 30
Ratio of expenses to average net assets (f)(g) .......... 2.61% 2.07%
Ratio of net investment loss to average net assets (f)(g) (1.09)% (0.78)%
Portfolio turnover rate ................................. 102%(e) 107%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class D shares were initially offered on November 1, 2002. Per share data
and total return 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 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
PERIOD ENDED
AUGUST 31, YEAR ENDED DECEMBER 31,
CLASS Z SHARES 2003(a) 2002(b) 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) ................ 0.06(c) 0.07(c) 0.07 (0.01) 0.03 0.09
Net realized and unrealized gain
(loss) on investments ...................... 2.29 (5.05) (4.35) (1.54) 6.25 5.68
------------ --------- --------- --------- ---------- -----------
Total from investment operations ......... 2.35 (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 ................ $ 17.26 $ 14.91 $ 19.97 $ 24.34 $ 28.90 $ 24.40
------------ --------- --------- --------- ---------- -----------
TOTAL RETURN (d) .............................. 15.76%(e) (24.92)% (17.60)% (5.73)% 25.76% 26.28%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ...... $ 427,669 $ 416,638 $ 681,397 $ 895,134 $ 959,910 $ 797,147
Ratio of expenses to average net assets (f) ... 0.94%(g) 0.86% 0.80% 0.75% 0.77% 0.80%
Ratio of net investment income
(loss) to average net assets (f) ............ 0.55%(g) 0.43% 0.32% (0.05)% 0.09% 0.56%
Portfolio turnover rate ....................... 102%(e) 107% 114% 104% 97% 141%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were redesignated Class Z
shares.
(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) 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
34
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA GROWTH FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS A SHARES 2003(a) 2002(b)
------------ -----------
NET ASSET VALUE, BEGINNING OF PERIOD .......... $ 20.83 $ 21.52
------------ -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) ..................... (0.07) --(d)
Net realized and unrealized gain (loss) on
investments ............................... 3.85 (0.69)
------------ -----------
Total from investment operations ........ 3.78 (0.69)
------------ -----------
NET ASSET VALUE, END OF PERIOD ................ $ 24.61 $ 20.83
------------ -----------
TOTAL RETURN (e)(f) ........................... 18.15% (3.21)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ...... $ 4,229 $ 3,077
Ratio of expenses to average net assets (g)(h) 1.33% 1.15%
Ratio of net investment loss to average net
assets (g)(h) ................................ (0.44)% (0.36)%
Portfolio turnover rate ....................... 110%(f) 165%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class A shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Rounds to less than $0.01 per share.
(e) Total return at net asset value assuming no initial sales charges or
contingent deferred sales charge.
(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.
COLUMBIA GROWTH FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS B SHARES 2003(a) 2002(b)
------------ -------------
NET ASSET VALUE, BEGINNING OF PERIOD ........ $ 20.82 $ 21.52
------------ -------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) ................... (0.19) (0.03)
Net realized and unrealized gain
(loss) on investments .................... 3.84 (0.67)
------------ -------------
Total from investment operations ....... 3.65 (0.70)
------------ -------------
NET ASSET VALUE, END OF PERIOD .............. $ 24.47 $ 20.82
------------ -------------
TOTAL RETURN (d)(e) ......................... 17.53% (3.25)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .... $ 793 $ 114
Ratio of expenses to average net
assets (f)(g) .............................. 2.11% 1.88%
Ratio of net investment loss to average net
assets (f)(g) .............................. (1.27)% (1.09)%
Portfolio turnover rate ..................... 110%(e) 165%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class B shares were initially offered on November 1, 2002. Per share data
and total return 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 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.
See Accompanying Notes to Financial Statements
35
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA GROWTH FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS D SHARES 2003(a) 2002(b)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD ........ $ 20.82 $ 21.52
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) ................... (0.17) (0.02)
Net realized and unrealized gain
(loss) on investments .................... 3.83 (0.68)
------------ ------------
Total from investment operations ....... 3.66 (0.70)
------------ ------------
NET ASSET VALUE, END OF PERIOD .............. $ 24.48 $ 20.82
------------ ------------
TOTAL RETURN (d)(e) ......................... 17.58% (3.25)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .... $ 294 $ 103
Ratio of expenses to average net
assets (f)(g) .............................. 2.02% 1.88%
Ratio of net investment loss to average net
assets (f)(g) ............................... (1.15)% (1.09)%
Portfolio turnover rate ..................... 110%(e) 165%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class D shares were initially offered on November 1, 2002. Per share data
and total return 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 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
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS G SHARES 2003(a) 2002(b)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD ........ $ 20.83 $ 21.52
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) ................... (0.16) (0.03)
Net realized and unrealized gain ..........
(loss) on investments ................... 3.82 (0.66)
------------ ------------
Total from investment operations ....... 3.66 (0.69)
------------ ------------
NET ASSET VALUE, END OF PERIOD .............. $ 24.49 $ 20.83
------------ ------------
TOTAL RETURN (d)(e) ......................... 17.57% (3.21)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .... $ 14,810 $ 13,705
Ratio of expenses to average net
assets (f)(g) ............................. 2.00% 1.83%
Ratio of net investment loss to average net
assets (f)(g) ............................... (1.10)% (1.04)%
Portfolio turnover rate ..................... 110%(e) 165%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class G shares were initially offered on November 1, 2002. Per share data
and total return 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 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.
See Accompanying Notes to Financial Statements
36
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA GROWTH FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED
AUGUST 31, YEAR ENDED DECEMBER 31,
CLASS Z SHARES 2003(a) 2002(b) 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) ............ --(c)(d) (0.01)(c) (0.02) (0.08) (0.03) 0.03
Net realized and unrealized gain
(loss) on investments ..... 3.85 (10.49) (8.55) (3.49) 11.09 10.39
---------- --------- ----------- ----------- ----------- -----------
Total from investment operations ...... 3.85 (10.50) (8.57) (3.57) 11.06 10.42
---------- --------- ----------- ----------- ----------- -----------
LESS DISTRIBUTIONS
From net investment income .............. -- -- -- -- --(d) (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 ............. $ 24.70 $ 20.85 $ 31.35 $ 40.07 $ 48.91 $ 42.51
---------- --------- ----------- ----------- ----------- -----------
TOTAL RETURN (e) ........................... 18.47%(f) (33.49)% (21.40)% (7.94)% 26.02% 30.34%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ... $ 909,611 $ 811,648 $ 1,325,844 $ 1,919,227 $ 2,160,739 $ 1,753,024
Ratio of expenses to average net assets (g) 0.88%(h) 0.82% 0.72% 0.65% 0.65% 0.68%
Ratio of net investment income (loss) to
average net assets (g) 0.01%(h) (0.03)% (0.07)% (0.18)% (0.07)% 0.21%
Portfolio turnover rate .................... 110%(f) 165% 122% 114% 118% 105%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were redesignated Class Z
shares.
(c) Per share data was calculated using average shares outstanding during the
period.
(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.
COLUMBIA INTERNATIONAL STOCK FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS A SHARES 2003(a) 2002(b)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD ........ $ 10.05 $ 10.04
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (c) .......... 0.04 (0.02)
Net realized and unrealized gain on
investments, foreign currency and
foreign capital gains tax ............... 1.25 0.03
------------ ------------
Total from investment operations ....... 1.29 0.01
------------ ------------
NET ASSET VALUE, END OF PERIOD .............. $ 11.34 $ 10.05
------------ ------------
TOTAL RETURN (d)(e) ......................... 12.84% 0.10%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .... $ 21,664 $ 20,178
Ratio of expenses to average net
assets (f)(g) ............................. 1.90% 1.86%
Ratio of net investment income (loss)
to average net assets (f)(g) ................ 0.61% (0.39)%
Portfolio turnover rate ..................... 43%(e) 96%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class A shares were initially offered on November 1, 2002. Per share data
and total return 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 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.
See Accompanying Notes to Financial Statements
37
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA INTERNATIONAL STOCK FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS B SHARES 2003(a) 2002(b)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD ......... $ 10.02 $ 10.04
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) .................... (0.03) (0.05)
Net realized and unrealized
gain on investments, foreign currency and
foreign capital gains tax ................ 1.24 0.03
------------ ------------
Total from investment operations ............. 1.21 (0.02)
------------ ------------
NET ASSET VALUE, END OF PERIOD ............... $ 11.23 $ 10.02
------------ ------------
TOTAL RETURN (d)(e)(f) ....................... 12.08% (0.20)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ..... $ 10,316 $ 10,920
Ratio of expenses to average net assets (g)(h) 2.98% 3.64%
Ratio of net investment loss to average net
assets (g)(h) ................................ (0.47)% (2.17)%
Waiver (h)(i) ................................ 0.11% 0.11%
Portfolio turnover rate ...................... 43%(f) 96%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class B shares were initially offered on November 1, 2002. Per share data
and total return 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 no contingent deferred sales
charge.
(e) Had the Advisor not waived or reimbursed a portion of expenses, total
return would have been reduced.
(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.
(i) Amounts represent contractual waivers of transfer agent fees.
COLUMBIA INTERNATIONAL STOCK FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS D SHARES 2003(a) 2002(b)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD ............... $ 10.02 $ 10.04
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (c) ................. --(d) (0.04)
Net realized and unrealized gain on investments,
foreign currency and foreign capital gains tax .. 1.25 0.02
------------ ------------
Total from investment operations ............... 1.25 (0.02)
------------ ------------
NET ASSET VALUE, END OF PERIOD ..................... $ 11.27 $ 10.02
------------ ------------
TOTAL RETURN (e)(f)(g) ............................. 12.48% (0.20)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ........... $ 633 $ 542
Ratio of expenses to average net assets (h)(i) ..... 2.49% 3.48%
Ratio of net investment income (loss) to average
net assets (h)(i) .................................. 0.02% (2.01)%
Waiver (i)(j) ...................................... 0.75% 0.75%
Portfolio turnover rate ............................ 43%(g) 96%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class D shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Rounds to less than $0.01 per share.
(e) Total return at net asset value assuming no initial sales charge or
contingent deferred sales charge.
(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.
(j) Amounts represent contractual waivers of transfer agent fees.
See Accompanying Notes to Financial Statements
38
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA INTERNATIONAL STOCK FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED
AUGUST 31, YEAR ENDED DECEMBER 31,
CLASS Z SHARES 2003(a) 2002(b) 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) ............. 0.07(c) --(c)(d) 0.01 (0.04) (0.05) --(d)
Net realized and unrealized gain
(loss) on investments,
foreign currency and foreign
capital gains tax ........... 1.27 (1.94) (2.74) (5.17) 9.00 1.76
------------ --------- --------- --------- --------- ---------
Total from investment operations ....... 1.34 (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)
------------ --------- --------- --------- --------- ---------
REDEMPTION FEES:
Redemption fees added to paid-in capital . 0.01(c) -- -- -- -- --
------------ --------- --------- --------- --------- ---------
Net asset value, end of period .............. $ 11.40 $ 10.05 $ 12.03 $ 14.77 $ 22.81 $ 15.45
------------ --------- --------- --------- --------- ---------
TOTAL RETURN (e) ............................ 13.43%(f)(g) (16.10)%(f) (18.47)% (22.64)% 57.93% 12.83%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .... $ 248,718 $ 143,332 $ 135,626 $ 175,316 $ 239,223 $ 134,193
Ratio of expenses to average net assets (h) . 1.47%(i) 1.49% 1.56% 1.42% 1.48% 1.56%
Ratio of net investment income
(loss) to average net assets (h) 1.03%(i) (0.02)% 0.06% (0.19)% (0.35)% (0.02)%
Waiver ...................................... 0.12%(i)(j) 0.12%(j) -- -- -- --
Portfolio turnover rate ..................... 43%(g) 96% 130% 112% 94% 74%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were redesignated Class Z
shares.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Rounds to less than $0.01 per share.
(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.
(j) Amounts represent contractual waivers of transfer agent fees.
See Accompanying Notes to Financial Statements
39
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA MID CAP GROWTH FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS A SHARES 2003(a) 2002(b)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD ........... $ 14.77 $ 15.15
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) ...................... (0.14) (0.02)
Net realized and unrealized gain (loss) on
investments ................................. 3.46 (0.36)
------------ ------------
Total from Investment Operations .......... 3.32 (0.38)
------------ ------------
NET ASSET VALUE, END OF PERIOD ................. $ 18.09 $ 14.77
------------ ------------
TOTAL RETURN (d)(e)(f) ......................... 22.48% (2.51)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ....... $ 4,525 $ 1,180
Ratio of expenses to average net assets (g)(h) . 1.60% 1.49%
Ratio of net investment loss to average net
assets (g)(h) .................................. (1.31)% (1.22)%
Waiver (h)(i) .................................. 0.01% 0.01%
Portfolio turnover rate ........................ 78%(f) 88%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class A shares were initially offered on November 1, 2002. Per share
data and total return 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 no initial sales charge or
contingent deferred sales charge.
(e) Had the Advisor not waived a portion of expenses, total return would have
been reduced.
(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.
(i) Amounts represent contractual waivers of transfer agent fees.
COLUMBIA MID CAP GROWTH FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS A SHARES 2003(a) 2002(b)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD .......... $ 14.76 $ 15.15
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) ..................... (0.22) (0.04)
Net realized and unrealized gain (loss) on
investments ................................ 3.44 (0.35)
------------ ------------
Total from Investment Operations .......... 3.22 (0.39)
------------ ------------
NET ASSET VALUE, END OF PERIOD ................ $ 17.98 $ 14.76
------------ ------------
TOTAL RETURN (d)(e)(f) ........................ 21.82% (2.57)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ...... $ 4,242 $ 3,383
Ratio of expenses to average net assets (g)(h) 2.36% 2.32%
Ratio of net investment loss to average net ...
assets (g)(h) .............................. (2.06)% (2.05)%
Waiver (h)(i) ................................. 0.12% 0.12%
Portfolio turnover rate ....................... 78%(f) 88%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class B shares were initially offered on November 1, 2002. Per share data
and total return 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 no contingent deferred sales
charge.
(e) Had the Advisor not waived a portion of expenses, total return would have
been reduced.
(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.
(i) Amounts represent contractual waivers of transfer agent fees.
See Accompanying Notes to Financial Statements
40
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA MID CAP GROWTH FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS D SHARES 2003(a) 2002(b)
----------- -----------
NET ASSET VALUE, BEGINNING OF PERIOD .................... $ 14.76 $ 15.15
----------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) .............................. (0.21) (0.04)
Net realized and unrealized gain (loss) on investments 3.43 (0.35)
----------- -----------
Total from investment operations ................... 3.22 (0.39)
----------- -----------
NET ASSET VALUE, END OF PERIOD .......................... $ 17.98 $ 14.76
----------- -----------
TOTAL RETURN (d)(e)(f) .................................. 21.82% (2.57)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ................ $ 737 $ 433
Ratio of expenses to average net assets (g)(h) .......... 2.27% 2.32%
Ratio of net investment loss to average net assets (g)(h) (1.97)% (2.05)%
Waiver (h)(i) ........................................... 0.09% 0.09%
Portfolio turnover rate ................................. 78%(f) 88%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class D shares were initially offered on November 1, 2002. Per share data
and total return 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 no initial sales charge or
contingent deferred sales charge.
(e) Had the Advisor not waived a portion of expenses, total return would
have been reduced.
(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.
(i) Amounts represent contractual waivers of transfer agent fees.
COLUMBIA MID CAP GROWTH FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS G SHARES 2003(a) 2002(b)
----------- -----------
NET ASSET VALUE, BEGINNING OF PERIOD .................... $ 14.77 $ 15.15
----------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) .............................. (0.23) (0.04)
Net realized and unrealized gain (loss) on investments 3.44 (0.34)
----------- -----------
Total from investment operations ................... 3.21 (0.38)
----------- -----------
NET ASSET VALUE, END OF PERIOD .......................... $ 17.98 $ 14.77
----------- -----------
TOTAL RETURN (d)(e) ..................................... 21.73% (2.51)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ................ $ 806 $ 753
Ratio of expenses to average net assets (f)(g) .......... 2.47% 2.35%
Ratio of net investment loss to average net assets (f)(g) (2.17)% (2.08)%
Portfolio turnover rate ................................. 78%(e) 88%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class G shares were initially offered on November 1, 2002. Per share data
and total return 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 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.
See Accompanying Notes to Financial Statements
41
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA MID CAP GROWTH FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS T SHARES 2003(a) 2002(b)
----------- -----------
<c>
NET ASSET VALUE, BEGINNING OF PERIOD .................... $ 14.79 $ 15.15
----------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) .............................. (0.12) (0.02)
Net realized and unrealized gain (loss) on investments 3.45 (0.34)
----------- -----------
Total from investment operations ................... 3.33 (0.36)
----------- -----------
NET ASSET VALUE, END OF PERIOD .......................... $ 18.12 $ 14.79
----------- -----------
TOTAL RETURN (d)(e) ..................................... 22.52% (2.38)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ................ $ 29,920 $ 25,966
Ratio of expenses to average net assets (f)(g) .......... 1.46% 1.45%
Ratio of net investment loss to average net assets (f)(g) (1.16)% (1.18)%
Portfolio turnover rate ................................. 78%(e) 88%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class T shares were initially offered on November 1, 2002. Per share data
and total return 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 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.
See Accompanying Notes to Financial Statements
42
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA MID CAP GROWTH FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED
AUGUST 31, YEAR ENDED DECEMBER 31,
CLASS Z SHARES 2003(a) 2002(b) 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 ...................... (0.08)(c) (0.13)(c) (0.11) (0.10) (0.16) (0.03)
Net realized and unrealized gain
(loss) on investments .................. 3.46 (4.68) (5.35) 4.45 8.74 3.40
----------- --------- --------- ----------- --------- --------
Total from investment operations ....... 3.38 (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) --(d)
----------- --------- --------- ----------- --------- --------
Total distributions .................... -- -- (0.93) (8.29) (2.27) (0.01)
----------- --------- --------- ----------- --------- --------
NET ASSET VALUE, END OF PERIOD .............. $ 18.17 $ 14.79 $ 19.60 $ 25.99 $ 29.93 $ 23.62
----------- --------- --------- ----------- --------- --------
TOTAL RETURN (e) ............................ 22.85%(f)(g) (24.54)%(f) (20.98)% 13.84% 36.33% 16.64%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .... $ 998,943 $ 807,342 $ 786,071 $ 1,095,525 $ 918,322 $969,359
Ratio of expenses to average net assets (h).. 1.09%(i) 1.12% 1.08% 0.99% 1.09% 1.03%
Ratio of net investment loss to average
net assets (h) ............................. (0.80)%(i) (0.85)% (0.49)% (0.38)% (0.64)% (0.09)%
Waiver ...................................... 0.05%(i)(j) 0.05%(j) -- -- -- --
Portfolio turnover rate ..................... 78%(g) 88% 186% 169% 135% 135%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were redesignated
Class Z shares.
(c) Per share data was calculated using average shares outstanding during
the period.
(d) Rounds to less than $0.01 per share.
(e) Total return at net asset value assuming all distributions reinvested.
(f) Had the Advisor not waived 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.
(j) Amounts represent contractual waivers of transfer agent fees.
See Accompanying Notes to Financial Statements
43
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA SMALL CAP GROWTH FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED
AUGUST 31, YEAR ENDED DECEMBER 31,
CLASS Z SHARES 2003(a) 2002(b) 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 ...................... (0.13)(c) (0.17)(c) (0.13) (0.10) (0.14) (0.09)
Net realized and unrealized gain
(loss) on investments ................... 5.45 (5.73) (3.54) 1.75 10.45 0.87
----------- --------- --------- ----------- --------- ---------
Total from investment operations ....... 5.32 (5.90) (3.67) 1.65 10.31 0.78
----------- --------- --------- ----------- --------- ---------
LESS DISTRIBUTIONS:
From net realized gains .................. -- -- -- (3.04) (0.48) --(d)
----------- --------- --------- ----------- --------- ---------
NET ASSET VALUE, END OF PERIOD .............. $ 21.62 $ 16.30 $ 22.20 $ 25.87 $ 27.26 $ 17.43
----------- --------- --------- ----------- --------- ---------
TOTAL RETURN (e) ............................ 32.64%(f) (26.58)% (14.19)% 5.85% 59.15% 4.69%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .... $ 637,616 $ 493,031 $ 617,966 $ 518,970 $ 290,374 $ 160,472
Ratio of expenses to average net assets (g).. 1.28%(h) 1.24% 1.23% 1.22% 1.30% 1.34%
Ratio of net investment loss to average
net assets (g) ............................ (1.09)%(h) (0.90)% (0.71)% (0.44)% (0.84)% (0.68)%
Portfolio turnover rate ..................... 79%(f) 109% 129% 145% 188% 158%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were redesignated
Class Z shares.
(c) Per share data was calculated using average shares outstanding
during the period.
(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.
COLUMBIA REAL ESTATE EQUITY FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS A SHARES 2003(a) 2002(b)
----------- -----------
NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 17.80 $ 17.01
----------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) .............................. 0.36(d) 0.26
Net realized and unrealized gain on investments ........ 3.11 0.78
----------- -----------
Total from investment operations ..................... 3.47 1.04
----------- -----------
LESS DISTRIBUTIONS:
From net investment income ............................. (0.23) (0.25)
----------- -----------
NET ASSET VALUE, END OF PERIOD ............................ $ 21.04 $ 17.80
----------- -----------
TOTAL RETURN (e)(f) ....................................... 19.62% 6.10%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .................. $ 12,364 $ 905
Ratio of expenses to average net assets (g)(h) ............ 1.55% 1.43%
Ratio of net investment income to average net assets (g)(h) 2.70%(d) 4.81%
Portfolio turnover rate ................................... 33%(f) 53%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class A shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during
the period.
(d) Effective January 1, 2003, the Fund adopted the policy to reduce cost of
investments for financial statement purposes by the distributions received
in excess of income from Real Estate Investment Trusts. The effect of this
change for the eight months ended August 31, 2003 was to decrease the net
investment income per share by $0.05, increase net realized and unrealized
gain on investments per share by $0.05 and decrease the ratio of net
investment income to average net assets from 3.12% to 2.70%. Per share data
and ratios for periods prior to August 31, 2003 have not been restated to
reflect this change in policy.
(e) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(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
44
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA REAL ESTATE EQUITY FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS B SHARES 2003(a) 2002(b)
----------- -----------
NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 17.82 $ 17.01
----------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) .............................. 0.24(d) 0.22
Net realized and unrealized gain on investments ........ 3.12 0.81
Total from investment operations ..................... 3.36 1.03
----------- -----------
LESS DISTRIBUTIONS:
From net investment income ............................. (0.15) (0.22)
----------- -----------
NET ASSET VALUE, END OF PERIOD ............................ $ 21.03 $ 17.82
----------- -----------
TOTAL RETURN (e)(f) ....................................... 18.97% 6.09%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .................. $ 4,776 $ 1,074
Ratio of expenses to average net assets (g)(h) ............ 2.37% 2.18%
Ratio of net investment income to average net assets (g)(h) 1.86%(d) 4.06%
Portfolio turnover rate ................................... 33%(f) 53%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class B shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Effective January 1, 2003, the Fund adopted the policy to reduce cost of
investments for financial statement purposes by the distributions received
in excess of income from Real Estate Investment Trusts. The effect of this
change for the eight months ended August 31, 2003 was to decrease the net
investment income per share by $0.05, increase net realized and unrealized
gain on investments per share by $0.05 and decrease the ratio of net
investment income to average net assets from 2.28% to 1.86%. Per share data
and ratios for periods prior to August 31, 2003 have not been restated to
reflect this change in policy.
(e) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(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.
COLUMBIA REAL ESTATE EQUITY FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS D SHARES 2003(a) 2002(b)
----------- -----------
NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 17.82 $ 17.01
----------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) .............................. 0.27(d) 0.21
Net realized and unrealized gain on investments ........ 3.10 0.82
----------- -----------
Total from investment operations ..................... 3.37 1.03
----------- -----------
LESS DISTRIBUTIONS:
From net investment income ............................. (0.16) (0.22)
----------- -----------
NET ASSET VALUE, END OF PERIOD ............................ $ 21.03 $ 17.82
----------- -----------
TOTAL RETURN (e)(f) ....................................... 18.99% 6.09%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .................. $ 3,466 $ 365
Ratio of expenses to average net assets (g)(h) ............ 2.30% 2.18%
Ratio of net investment income to average net assets (g)(h) 2.02%(d) 4.06%
Portfolio turnover rate ................................... 33%(f) 53%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class D shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during
the period.
(d) Effective January 1, 2003, the Fund adopted the policy to reduce cost of
investments for financial statement purposes by the distributions received
in excess of income from Real Estate Investment Trusts. The effect of this
change for the eight months ended August 31, 2003 was to decrease the net
investment income per share by $0.05, increase net realized and unrealized
gain on investments per share by $0.05 and decrease the ratio of net
investment income to average net assets from 2.44% to 2.02%. Per share data
and ratios for periods prior to August 31, 2003 have not been restated to
reflect this change in policy.
(e) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(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
45
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA REAL ESTATE EQUITY FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED
AUGUST 31, YEAR ENDED DECEMBER 31,
CLASS Z SHARES 2003(a) 2002(b) 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 .................... 0.39(c)(d) 0.82(c) 0.79 0.81 0.82 0.75
Net realized and unrealized gain
(loss) on investments ................... 3.14 (0.25) 0.15 3.32 (1.19) (3.04)
----------- --------- --------- ----------- --------- ---------
Total from investment operations ........ 3.53 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 .............. $ 21.06 $ 17.81 $ 18.04 $ 17.89 $ 14.57 $ 15.76
----------- --------- --------- ----------- --------- ---------
TOTAL RETURN (e) ............................ 20.01%(f) 3.12% 5.41% 28.84% (2.45)% (12.33)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .... $ 884,747 $ 774,646 $ 621,590 $ 436,764 $ 241,716 $ 164,172
Ratio of expenses to average net assets (g) . 1.08%(h) 0.94% 0.95% 0.96% 0.99% 1.01%
Ratio of net investment income to
average net assets (g) .................... 3.09%(d)(h) 5.30% 4.65% 5.16% 5.66% 4.60%
Portfolio turnover rate ..................... 33%(f) 53% 41% 25% 29% 6%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were redesignated Class Z
shares.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Effective January 1, 2003, the Fund adopted the policy to reduce cost of
investments for financial statement purposes by the distributions received
in excess of income from Real Estate Investment Trusts. The effect of this
change for the eight months ended August 31, 2003 was to decrease the net
investment income per share by $0.05, increase net realized and unrealized
gain on investments per share by $0.05 and decrease the ratio of net
investment income to average net assets from 3.51% to 3.09%. Per share data
and ratios for periods prior to August 31, 2003 have not been restated to
reflect this change in policy.
(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
46
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA TECHNOLOGY FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS A SHARES 2003(a) 2002(b)
----------- -----------
NET ASSET VALUE, BEGINNING OF PERIOD .................... $ 3.79 $ 3.82
----------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) .............................. (0.04) (0.01)
Net realized and unrealized gain (loss) on investments 2.16 (0.02)
----------- -----------
Total from investment operations ................... 2.12 (0.03)
----------- -----------
NET ASSET VALUE, END OF PERIOD .......................... $ 5.91 $ 3.79
----------- -----------
TOTAL RETURN (d)(e)(f) .................................. 55.94% (0.79)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ................ $ 376 $ 1
Ratio of expenses to average net assets (g)(h) .......... 1.90% 1.76%
Ratio of net investment loss to average net assets (g)(h) (1.35)% (1.35)%
Reimbursement (h) ....................................... 3.06% 1.24%
Portfolio turnover rate ................................. 523%(f) 512%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class A shares were initially offered on November 1, 2002. Per share data
and total return 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 no initial sales charge or
contingent deferred sales charge.
(e) Had the Advisor not waived or reimbursed a portion of expenses,
total return would have been reduced.
(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.
COLUMBIA TECHNOLOGY FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS B SHARES 2003(a) 2002(b)
----------- -----------
NET ASSET VALUE, BEGINNING OF PERIOD .................... $ 3.78 $ 3.82
----------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) .............................. (0.07) (0.01)
Net realized and unrealized gain (loss) on investments 2.15 (0.03)
----------- -----------
Total from investment operations ................... 2.08 (0.04)
----------- -----------
NET ASSET VALUE, END OF PERIOD .......................... $ 5.86 $ 3.78
----------- -----------
TOTAL RETURN (d)(e)(f) .................................. 55.03% (1.05)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ................ $ 1,246 $ 7
Ratio of expenses to average net assets (g)(h) .......... 2.65% 2.51%
Ratio of net investment loss to average net assets (g)(h) (2.11)% (2.10)%
Reimbursement (h) ....................................... 2.40% 1.24%
Portfolio turnover rate ................................. 523%(f) 512%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class B shares were initially offered on November 1, 2002. Per share data
and total return 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 no contingent deferred sales
charge.
(e) Had the Advisor not waived or reimbursed a portion of expenses, total
return would have been reduced.
(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
47
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA TECHNOLOGY FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS D SHARES 2003(a) 2002(b)
----------- -----------
NET ASSET VALUE, BEGINNING OF PERIOD .................... $ 3.78 $ 3.82
----------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) .............................. (0.07) (0.01)
Net realized and unrealized gain (loss) on investments 2.17 (0.03)
----------- -----------
Total from investment operations ................... 2.10 (0.04)
----------- -----------
NET ASSET VALUE, END OF PERIOD .......................... $ 5.88 $ 3.78
----------- -----------
TOTAL RETURN (d)(e)(f) .................................. 55.56% (1.05)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ................ $ 15 $ 1
Ratio of expenses to average net assets (g)(h) .......... 2.65% 2.51%
Ratio of net investment loss to average net assets (g)(h) (2.13)% (2.10)%
Reimbursement (h) ....................................... 4.00% 1.24%
Portfolio turnover rate ................................. 523%(f) 512%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class D shares were initially offered on November 1, 2002. Per share data
and total return 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 no initial sales charge or
contingent deferred sales charge.
(e) Had the Advisor not waived or reimbursed a portion of expenses,
total return would have been reduced.
(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.
COLUMBIA TECHNOLOGY FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED YEAR ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31, DECEMBER 31,
CLASS Z SHARES 2003(a) 2002(b) 2001 2000(c)
----------- --------- --------- -----------
NET ASSET VALUE, BEGINNING OF PERIOD .......................... $ 3.79 $ 6.13 $ 8.63 $ 10.00
----------- --------- --------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) ............................... (0.04)(d) (0.06)(d) (0.08) 0.01
Net realized and unrealized gain (loss) on investments ..... 2.18 (2.28) (2.42) (1.37)
----------- --------- --------- -----------
Total from investment operations ......................... 2.14 (2.34) (2.50) (1.36)
----------- --------- --------- -----------
LESS DISTRIBUTIONS:
From net investment income ................................. -- -- -- (0.01)
----------- --------- --------- -----------
NET ASSET VALUE, END OF PERIOD ................................ $ 5.93 $ 3.79 $ 6.13 $ 8.63
----------- --------- --------- -----------
TOTAL RETURN (e)(f) ........................................... 56.46%(g) (38.17)% (28.97)% (13.78)%(g)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ...................... $ 19,663 $ 8,055 $ 10,385 $ 4,327
Ratio of expenses to average net assets (h) ................... 1.65%(i) 1.65% 1.69% 1.48%(i)
Ratio of net investment income (loss) to average net assets (h) (1.19)%(i) (1.24)% (1.26)% 0.99%(i)
Reimbursement ................................................. 2.73%(i) 1.33% 1.13% 7.49%(i)
Portfolio turnover rate ....................................... 523%(g) 512% 413% 63%(g)
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing shares were redesignated Class Z shares.
(c) The Fund commenced investment operations on October 27, 2000. Per share
data, total return and portfolio turnover rate reflect activity from that
date.
(d) Per share data was calculated using average shares outstanding during the
period.
(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
48
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA STRATEGIC INVESTOR FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS A SHARES 2003(a) 2002(b)
----------- -----------
NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 13.13 $ 12.72
----------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) .............................. 0.06 0.01
Net realized and unrealized gain on
investments and foreign currency ..................... 2.76 0.40
----------- -----------
Total from investment operations ..................... 2.82 0.41
----------- -----------
NET ASSET VALUE, END OF PERIOD ............................ $ 15.95 $ 13.13
----------- -----------
TOTAL RETURN (d)(e) ....................................... 21.48% 3.22%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .................. $ 60,112 $ 53,526
Ratio of expenses to average net assets (f)(g) ............ 1.30% 1.21%
Ratio of net investment income to average net assets (f)(g) 0.60% 0.64%
Portfolio turnover rate ................................... 68%(e) 188%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class A shares were initially offered on November 1, 2002. Per share data
and total return 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 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 STRATEGIC INVESTOR FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS B SHARES 2003(a) 2002(b)
----------- -----------
NET ASSET VALUE, BEGINNING OF PERIOD .................... $ 13.10 $ 12.72
----------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) .............................. (0.03) (0.01)
Net realized and unrealized gain on
investments and foreign currency ................... 2.75 0.39
----------- -----------
Total from investment operations ................... 2.72 0.38
----------- -----------
NET ASSET VALUE, END OF PERIOD .......................... $ 15.82 $ 13.10
----------- -----------
TOTAL RETURN (d)(e)(f) .................................. 20.76% 2.99%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ................ $ 3,398 $ 2,350
Ratio of expenses to average net assets (g)(h) .......... 2.22% 2.36%
Ratio of net investment loss to average net assets (g)(h) (0.33)% (0.51)%
Waiver (h)(i) ........................................... 0.23% 0.23%
Portfolio turnover rate ................................. 68%(f) 188%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class B shares were initially offered on November 1, 2002. Per share data
and total return 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 no contingent deferred sales
charge.
(e) Had the Advisor not waived or reimbursed a portion of expenses, total
return would have been reduced.
(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.
(i) Amounts represent contractual waivers of transfer agent fees.
See Accompanying Notes to Financial Statements
49
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA STRATEGIC INVESTOR FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS D SHARES 2003(a) 2002(b)
----------- -----------
NET ASSET VALUE, BEGINNING OF PERIOD .................... $ 13.11 $ 12.72
----------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) .............................. (0.05) (0.01)
Net realized and unrealized gain on
investments and foreign currency ................... 2.75 0.40
----------- -----------
Total from investment operations ................... 2.70 0.39
----------- -----------
NET ASSET VALUE, END OF PERIOD .......................... $ 15.81 $ 13.11
----------- -----------
TOTAL RETURN (d)(e)(f) .................................. 20.59% 3.07%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ................ $ 704 $ 355
Ratio of expenses to average net assets (g)(h) .......... 2.34% 2.28%
Ratio of net investment loss to average net assets (g)(h) (0.48)% (0.43)%
Waiver (h)(i) ........................................... 0.15% 0.15%
Portfolio turnover rate ................................. 68%(f) 188%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class D shares were initially offered on November 1, 2002. Per share data
and total return 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 no initial sales charge or
contingent deferred sales charge.
(e) Had the Advisor not waived or reimbursed a portion of expenses,
total return would have been reduced.
(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.
(i) Amounts represent contractual waivers of transfer agent fees.
See Accompanying Notes to Financial Statements
50
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA STRATEGIC INVESTOR FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED YEAR ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31, DECEMBER 31,
CLASS Z SHARES 2003(a) 2002(b) 2001 2000(c)
----------- --------- ---------- ------------
NET ASSET VALUE, BEGINNING OF PERIOD .................... $ 13.14 $ 14.52 $ 11.23 $ 10.00
----------- --------- ---------- ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................ 0.08(d) 0.10(d) 0.05 0.02
Net realized and unrealized gain (loss) on investments
and foreign currency ............................... 2.76 (1.35) 3.29 1.23
----------- --------- ---------- ------------
Total from investment operations ................... 2.84 (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 .......................... $ 15.98 $ 13.14 $ 14.52 $ 11.23
----------- --------- ---------- ------------
TOTAL RETURN (e) ........................................ 21.61%(f)(g) (8.56)%(f) 29.76% 12.25%(f)(g)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ................ $ 227,454 $ 209,610 $ 139,504 $ 9,526
Ratio of expenses to average net assets (h) ............. 1.08%(i) 1.23% 1.13% 1.34%(i)
Ratio of net investment income to average net assets (h) 0.82%(i) 0.62% 0.71% 1.92%(i)
Waiver .................................................. 0.03%(i)(j) 0.03%(j) -- 3.97%(i)
Portfolio turnover rate ................................. 68%(g) 188% 278% 64%(g)
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were redesignated
Class Z shares.
(c) The Fund commenced investment operations on October 27, 2000. Per share
data, total return and portfolio turnover rate reflect activity from
that date.
(d) Per share data was calculated using average shares outstanding during the
period.
(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.
(j) Amounts represent contractual waivers of the transfer agent fees.
See Accompanying Notes to Financial Statements
51
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA BALANCED FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS A SHARES 2003(a) 2002(b)
----------- -----------
NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 17.52 $ 17.58
----------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) .............................. 0.16 0.03
Net realized and unrealized gain on investments ........ 1.64 --(d)
----------- -----------
Total from investment operations ..................... 1.80 0.03
----------- -----------
LESS DISTRIBUTIONS:
From net investment income ............................. (0.14) (0.09)
----------- -----------
NET ASSET VALUE, END OF PERIOD ............................ $ 19.18 $ 17.52
----------- -----------
TOTAL RETURN (e)(f) ....................................... 10.35% 0.19%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .................. $ 670 $ 146
Ratio of expenses to average net assets (g)(h) ............ 1.42% 1.17%
Ratio of net investment income to average net assets (g)(h) 1.32% 2.03%
Portfolio turnover rate ................................... 110%(f) 98%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class A shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Rounds to less than $0.01 per share.
(e) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(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.
COLUMBIA BALANCED FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS B SHARES 2003(a) 2002(b)
----------- -----------
NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 17.52 $ 17.58
----------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) .............................. 0.07 0.02
Net realized and unrealized gain (loss) on investments . 1.65 (0.01)
----------- -----------
Total from investment operations ..................... 1.72 0.01
----------- -----------
LESS DISTRIBUTIONS:
From net investment income ............................. (0.08) (0.07)
----------- -----------
NET ASSET VALUE, END OF PERIOD ............................ $ 19.16 $ 17.52
----------- -----------
TOTAL RETURN (d)(e) ....................................... 9.83% 0.06%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .................. $ 3,349 $ 608
Ratio of expenses to average net assets (f)(g) ............ 2.17% 1.92%
Ratio of net investment income to average net assets (f)(g) 0.59% 1.28%
Portfolio turnover rate ................................... 110%(e) 98%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class B shares were initially offered on November 1, 2002. Per share data
and total return 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 and
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.
See Accompanying Notes to Financial Statements
52
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA BALANCED FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS D SHARES 2003(a) 2002(b)
----------- -----------
NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 17.51 $ 17.58
----------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) .............................. 0.11 0.02
Net realized and unrealized gain (loss) on investments . 1.64 (0.02)
----------- -----------
Total from investment operations ..................... 1.75 --
----------- -----------
LESS DISTRIBUTIONS:
From net investment income ............................. (0.09) (0.07)
----------- -----------
NET ASSET VALUE, END OF PERIOD ............................ $ 19.17 $ 17.51
----------- -----------
TOTAL RETURN (d)(e) ....................................... 10.01% 0.01%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .................. $ 770 $ 446
Ratio of expenses to average net assets (f)(g) ............ 1.87% 1.92%
Ratio of net investment income to average net assets (f)(g) 0.89% 1.28%
Portfolio turnover rate ................................... 110%(e) 98%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class D shares were initially offered on November 1, 2002. Per share data
and total return 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 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.
See Accompanying Notes to Financial Statements
53
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA BALANCED FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED
AUGUST 31, EAR ENDED DECEMBER 31,
CLASS Z SHARES 2003(a) 2002(b) 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 ...................... 0.24(c) 0.47(c) 0.57(d) 0.67 0.69 0.72
Net realized and unrealized gain
(loss) on investments ..................... 1.64 (3.13) (2.27)(d) (0.41) 2.21 3.52
------------ ---------- --------- ----------- ----------- ---------
Total from investment operations ......... 1.88 (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 ................ $ 19.19 $ 17.51 $ 20.67 $ 22.96 $ 24.72 $ 23.17
------------ ---------- --------- ----------- ----------- ---------
TOTAL RETURN (e) .............................. 10.81%(f) (12.97)% (7.40)% 0.82% 12.70% 20.07%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ...... $ 640,402 $ 668,290 $ 983,749 $ 1,126,854 $ 1,040,940 $ 975,381
Ratio of expenses to average net assets (g) ... 0.77%(h) 0.70% 0.67% 0.65% 0.66% 0.67%
Ratio of net investment income to
average net assets (g) ...................... 2.03%(h) 2.50% 2.70%(d) 2.73% 2.85% 3.22%
Portfolio turnover rate ....................... 110%(f) 98% 111% 105% 133% 128%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were redesignated
Class Z shares.
(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 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.
(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
54
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA SHORT TERM BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS A SHARES 2003(a) 2002(b)
------------ -----------
NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 8.67 $ 8.63
------------ -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) .............................. 0.10 0.04
Net realized and unrealized gain (loss) on investments . (0.03) 0.04
------------ -----------
Total from investment operations ..................... 0.07 0.08
------------ -----------
LESS DISTRIBUTIONS:
From net investment income ............................. (0.12) (0.04)
------------ -----------
NET ASSET VALUE, END OF PERIOD ............................ $ 8.62 $ 8.67
------------ -----------
TOTAL RETURN (d)(e)(f) .................................... 0.82% 0.94%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .................. $ 37,261 $ 5,543
Ratio of expenses to average net assets (g)(h) ............ 1.00% 1.00%
Ratio of net investment income to average net assets (g)(h) 1.78% 3.53%
Waiver/reimbursement (h) .................................. 0.05% 0.02%
Portfolio turnover rate ................................... 137%(f) 182%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class A shares were initially offered on November 1, 2002. Per share data
and total return 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 and
no initial sales charge or contingent deferred sales charge.
(e) Had the Advisor not waived or reimbursed a portion of expenses, total
return would have been reduced.
(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
55
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA SHORT TERM BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS B SHARES 2003(a) 2002(b)
----------- -----------
NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 8.67 $ 8.63
----------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) .............................. 0.07 0.03
Net realized and unrealized gain (loss) on investments . (0.04) 0.04
----------- -----------
Total from investment operations ..................... 0.03 0.07
----------- -----------
LESS DISTRIBUTIONS:
From net investment income ............................. (0.08) (0.03)
----------- -----------
NET ASSET VALUE, END OF PERIOD ............................ $ 8.62 $ 8.67
----------- -----------
TOTAL RETURN (d)(e)(f) .................................... 0.35% 0.77%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .................. $ 26,965 $ 6,261
Ratio of expenses to average net assets (g)(h) ............ 1.75% 1.75%
Ratio of net investment income to average net assets (g)(h) 1.16% 2.78%
Reimbursement (h) ......................................... 0.15% 0.04%
Portfolio turnover rate ................................... 137%(f) 182%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class B shares were initially offered on November 1, 2002. Per share data
and total return 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 and
no contingent deferred sales charge.
(e) Had the Advisor not waived or reimbursed a portion of expenses, total
return would have been reduced.
(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
56
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA SHORT TERM BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS D SHARES 2003(a) 2002(b)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 8.67 $ 8.63
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) .............................. 0.10 0.04
Net realized and unrealized gain (loss) on investments . (0.04) 0.04
------------ ------------
Total from investment operations ..................... 0.06 0.08
------------ ------------
LESS DISTRIBUTIONS:
From net investment income ............................. (0.11) (0.04)
------------ ------------
NET ASSET VALUE, END OF PERIOD ............................ $ 8.62 $ 8.67
------------ ------------
TOTAL RETURN (d)(e)(f) .................................... 0.72% 0.88%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .................. $ 18,512 $ 5,223
Ratio of expenses to average net assets (g)(h) ............ 1.15% 1.15%
Ratio of net investment income to average net assets (g)(h) 1.71% 3.38%
Reimbursement (h) ......................................... 0.18% 0.04%
Waiver (h)(i) ............................................. 0.60% 0.60%
Portfolio turnover rate ................................... 137%(f) 182%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class D shares were initially offered on November 1, 2002. Per share data
and total return 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 and
no initial sales charge or contingent deferred sales charge.
(e) Had the Advisor/Distributor not waived or reimbursed a portion of expenses,
total return would have been reduced.
(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.
(i) Amounts represent voluntary waivers of distribution and service fees.
See Accompanying Notes to Financial Statements
57
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA SHORT TERM BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS G SHARES 2003(a) 2002(b)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 8.67 $ 8.63
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) .............................. 0.09 0.03
Net realized and unrealized gain (loss) on investments . (0.05) 0.04
------------ ------------
Total from investment operations ..................... 0.04 0.07
------------ ------------
LESS DISTRIBUTIONS:
From net investment income ............................. (0.09) (0.03)
------------ ------------
NET ASSET VALUE, END OF PERIOD ............................ $ 8.62 $ 8.67
------------ ------------
TOTAL RETURN (d)(e)(f) .................................... 0.47% 0.85%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .................. $ 1,614 $ 1,874
Ratio of expenses to average net assets (g)(h) ............ 1.55% 1.55%
Ratio of net investment income to average net assets (g)(h) 1.58% 2.98%
Reimbursement (h) ......................................... 0.10% 0.05%
Portfolio turnover rate ................................... 137%(f) 182%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class G shares were initially offered on November 1, 2002. Per share data
and total return 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 and
no contingent deferred sales charge.
(e) Had the Advisor not waived or reimbursed a portion of expenses, total
return would have been reduced.
(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
58
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA SHORT TERM BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS T SHARES 2003(a) 2002(b)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 8.67 $ 8.63
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) .............................. 0.13 0.04
Net realized and unrealized gain (loss) on investments . (0.05) 0.04
------------ ------------
Total from investment operations ..................... 0.08 0.08
------------ ------------
LESS DISTRIBUTIONS:
From net investment income ............................. (0.13) (0.04)
------------ ------------
NET ASSET VALUE, END OF PERIOD ............................ $ 8.62 $ 8.67
------------ ------------
TOTAL RETURN (d)(e)(f) .................................... 0.93% 0.95%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .................. $ 28,230 $ 30,859
Ratio of expenses to average net assets (g)(h) ............ 0.90% 0.90%
Ratio of net investment income to average net assets (g)(h) 2.25% 3.63%
Reimbursement (h) ......................................... 0.04% 0.02%
Portfolio turnover rate ................................... 137%(f) 182%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class T shares were initially offered on November 1, 2002. Per share data
and total return 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 and
no initial sales charge or contingent deferred sales charge.
(e) Had the Advisor not waived or reimbursed a portion of expenses, total
return would have been reduced.
(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
59
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA SHORT TERM BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED
AUGUST 31, YEAR ENDED DECEMBER 31,
CLASS Z SHARES 2003(a) 2002(b) 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 ...................... 0.14(c) 0.32(c) 0.46(d) 0.42 0.33 0.38
Net realized and unrealized gain
(loss) on investments ..................... (0.05) 0.14 0.21(d) 0.16 (0.18) 0.14
------------ --------- --------- --------- -------- ---------
Total from investment operations ......... 0.09 0.46 0.67 0.58 0.15 0.52
------------ --------- --------- --------- -------- ---------
LESS DISTRIBUTIONS:
From net investment income ................. (0.14) (0.34) (0.46) (0.42) (0.33) (0.38)
From net realized gains .................... -- --(e) (0.02) -- (0.01) (0.04)
------------ --------- --------- --------- -------- ---------
Total distributions ...................... (0.14) (0.34) (0.48) (0.42) (0.34) (0.42)
------------ --------- --------- --------- -------- ---------
NET ASSET VALUE, END OF PERIOD ................ $ 8.62 $ 8.67 $ 8.55 $ 8.36 $ 8.20 $ 8.39
------------ --------- --------- --------- -------- ---------
TOTAL RETURN (f) .............................. 1.06%(g)(h) 5.56% 8.07%(h) 7.26%(h) 1.80% 6.43%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ...... $ 436,593 $ 317,588 $ 62,930 $ 35,856 $ 38,072 $ 40,578
Ratio of expenses to average net assets (i) ... 0.66%(j) 0.67% 0.75% 0.88% 0.91% 0.89%
Ratio of net investment income to
average net assets (i) ....................... 2.36%(j) 3.86% 5.29%(d) 5.09% 4.09% 4.55%
Reimbursement ................................. 0.07%(j) -- 0.16% 0.02% -- --
Portfolio turnover rate ....................... 137%(g) 182% 137% 147% 211% 182%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing shares were redesignated Class Z shares.
(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 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.
(e) Rounds to less than $0.01 per share.
(f) Total return at net asset value assuming all distributions reinvested.
(g) Not annualized.
(h) Had the Advisor not waived or reimbursed a portion of expenses, total return
would have been reduced.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
See Accompanying Notes to Financial Statements
60
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA FIXED INCOME SECURITIES FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS A SHARES 2003(a) 2002(b)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 13.52 $ 13.42
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) .............................. 0.26 0.11
Net realized and unrealized gain (loss) on investments . (0.14) 0.08
------------ ------------
Total from investment operations ..................... 0.12 0.19
------------ ------------
LESS DISTRIBUTIONS:
From net investment income ............................. (0.30) (0.09)
------------ ------------
NET ASSET VALUE, END OF PERIOD ............................ $ 13.34 $ 13.52
------------ ------------
TOTAL RETURN (d)(e) ....................................... 0.84% 1.41%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .................. $ 7,503 $ 945
Ratio of expenses to average net assets (f)(g) ............ 1.44% 0.92%
Ratio of net investment income to average net assets (f)(g) 2.84% 4.78%
Portfolio turnover rate ................................... 161%(e) 103%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class A shares were initially offered on November 1, 2002. Per share data
and total return 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 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 FIXED INCOME SECURITIES FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS B SHARES 2003(a) 2002(b)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 13.52 $ 13.42
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) .............................. 0.20 0.09
Net realized and unrealized gain (loss) on investments . (0.15) 0.08
------------ ------------
Total from investment operations ..................... 0.05 0.17
------------ ------------
LESS DISTRIBUTIONS:
From net investment income ............................. (0.23) (0.07)
------------ ------------
NET ASSET VALUE, END OF PERIOD ............................ $ 13.34 $ 13.52
------------ ------------
TOTAL RETURN (d)(e) ....................................... 0.34% 1.27%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .................. $ 4,410 $ 1,466
Ratio of expenses to average net assets (f)(g) ............ 2.10% 1.71%
Ratio of net investment income to average net assets (f)(g) 2.22% 3.99%
Portfolio turnover rate ................................... 161%(e) 103%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class B shares were initially offered on November 1, 2002. Per share data
and total return 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
and 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.
See Accompanying Notes to Financial Statements
61
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA FIXED INCOME SECURITIES FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS D SHARES 2003(a) 2002(b)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 13.52 $ 13.42
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) .............................. 0.22 0.09
Net realized and unrealized gain (loss) on investments . (0.15) 0.08
------------ ------------
Total from investment operations ..................... 0.07 0.17
------------ ------------
LESS DISTRIBUTIONS:
From net investment income ............................. (0.25) (0.07)
------------ ------------
NET ASSET VALUE, END OF PERIOD ............................ $ 13.34 $ 13.52
------------ ------------
TOTAL RETURN (d)(e)(f) .................................... 0.51% 1.30%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .................. $ 2,632 $ 427
Ratio of expenses to average net assets (g)(h) ............ 1.79% 1.58%
Ratio of net investment income to average net assets (g)(h) 2.44% 4.12%
Waiver (h)(i) ............................................. 0.15% 0.15%
Portfolio turnover rate ................................... 161%(f) 103%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class D shares were initially offered on November 1, 2002. Per share data
and total return 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 .
and no initial sales charge or contingent deferred sales charge.
(e) Had the Distributor not waived or reimbursed a portion of expenses, total
return would have been reduced.
(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.
(i) Amounts represent voluntary waivers of distribution and service fees.
See Accompanying Notes to Financial Statements
62
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA FIXED INCOME SECURITIES FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED
AUGUST 31, YEAR ENDED DECEMBER 31,
CLASS Z SHARES 2003(a) 2002(b) 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 ...................... 0.33(c) 0.67(c) 0.77(d) 0.82 0.78 0.83
Net realized and unrealized gain
(loss) on investments ..................... (0.16) 0.31 0.26(d) 0.53 (0.98) 0.14
------------ --------- --------- --------- --------- ---------
Total from investment operations ......... 0.17 0.98 1.03 1.35 (0.20) 0.97
------------ --------- --------- --------- --------- ---------
LESS DISTRIBUTIONS:
From net investment income ................. (0.35) (0.68) (0.78) (0.82) (0.78) (0.83)
From net realized gains .................... -- -- -- -- --(e) (0.13)
------------ --------- --------- --------- --------- ---------
Total distributions ...................... (0.35) (0.68) (0.78) (0.82) (0.78) (0.96)
------------ --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD ................ $ 13.34 $ 13.52 $ 13.22 $ 12.97 $ 12.44 $ 13.42
------------ --------- --------- --------- --------- ---------
TOTAL RETURN (f) .............................. 1.26%(g) 7.65% 8.13% 11.27% (1.50)% 7.44%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ...... $ 506,046 $ 547,524 $ 465,743 $ 378,799 $ 397,147 $ 422,330
Ratio of expenses to average net assets (h) ... 0.77%(i) 0.67% 0.66% 0.66% 0.64% 0.65%
Ratio of net investment income to
average net assets (h) ....................... 3.66%(i) 5.03% 5.83%(d) 6.53% 6.03% 6.15%
Portfolio turnover rate ....................... 161%(g) 103% 110% 105% 155% 107%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were redesignated
Class Z shares.
(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 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.
(e) Rounds to less than $0.01 per share.
(f) Total return at net asset value assuming all distributions reinvested.
(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
63
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA NATIONAL MUNICIPAL BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS A SHARES 2003(a) 2002(b)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 10.28 $ 10.22
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) .............................. 0.24 0.06
Net realized and unrealized gain (loss) on investments . (0.16) 0.10
------------ ------------
Total from investment operations ..................... 0.08 0.16
------------ ------------
LESS DISTRIBUTIONS:
From net investment income ............................. (0.24) (0.06)
From net realized gains ................................ (0.01) (0.04)
------------ ------------
Total distributions .................................. (0.25) (0.10)
------------ ------------
NET ASSET VALUE, END OF PERIOD ............................ $ 10.11 $ 10.28
------------ ------------
TOTAL RETURN (d)(e)(f) .................................... 0.75% 1.59%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .................. $ 398 $ 67
Ratio of expenses to average net assets (g)(h) ............ 0.90% 0.90%
Ratio of net investment income to average net assets (g)(h) 3.49% 3.85%
Reimbursement (h) ......................................... 2.87% 0.56%
Portfolio turnover rate ................................... 12%(f) 43%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class A shares were initially offered on November 1, 2002. Per share data
and total return 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 and
no initial sales charge or contingent deferred sales charge.
(e) Had the Advisor not waived or reimbursed a portion of expenses, total
return would have been reduced.
(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
64
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA NATIONAL MUNICIPAL BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS B SHARES 2003(a) 2002(b)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 10.28 $ 10.22
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) .............................. 0.19 0.05
Net realized and unrealized gain (loss) on investments . (0.16) 0.10
------------ ------------
Total from investment operations ..................... 0.03 0.15
------------ ------------
LESS DISTRIBUTIONS:
From net investment income ............................. (0.19) (0.05)
From net realized gains ................................ (0.01) (0.04)
------------ ------------
Total distributions .................................. (0.20) (0.09)
------------ ------------
NET ASSET VALUE, END OF PERIOD ............................ $ 10.11 $ 10.28
------------ ------------
TOTAL RETURN (d)(e)(f) .................................... 0.25% 1.47%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .................. $ 593 $ 72
Ratio of expenses to average net assets (g)(h) ............ 1.65% 1.65%
Ratio of net investment income to average net assets (g)(h) 2.77% 3.10%
Reimbursement (h) ......................................... 2.82% 0.56%
Portfolio turnover rate ................................... 12%(f) 43%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class B shares were initially offered on November 1, 2002. Per share data
and total return 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 and
no contingent deferred sales charge.
(e) Had the Advisor not waived or reimbursed a portion of expenses, total
return would have been reduced.
(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
65
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA NATIONAL MUNICIPAL BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS D SHARES 2003(a) 2002(b)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 10.28 $ 10.22
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) .............................. 0.21 0.05
Net realized and unrealized gain (loss) on investments . (0.16) 0.10
------------ ------------
Total from investment operations ..................... 0.05 0.15
------------ ------------
LESS DISTRIBUTIONS:
From net investment income ............................. (0.21) (0.05)
From net realized gains ................................ (0.01) (0.04)
------------ ------------
Total distributions .................................. (0.22) (0.09)
------------ ------------
NET ASSET VALUE, END OF PERIOD ............................ $ 10.11 $ 10.28
------------ ------------
TOTAL RETURN (d)(e)(f) .................................... 0.47% 1.51%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .................. $ 443 $ 50
Ratio of expenses to average net assets (g)(h) ............ 1.30% 1.30%
Ratio of net investment income to average net assets (g)(h) 3.00% 3.45%
Reimbursement (h) ......................................... 2.86% 0.56%
Waiver (h)(i) ............................................. 0.35% 0.35%
Portfolio turnover rate ................................... 12%(f) 43%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class D shares were initially offered on November 1, 2002. Per share data
and total return 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 and
no initial sales charge or contingent deferred sales charge.
(e) Had the Advisor/Distributor not waived or reimbursed a portion of
expenses, total return would have been reduced.
(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.
(i) Amounts represent voluntary waivers of distribution and service fees.
See Accompanying Notes to Financial Statements
66
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA NATIONAL MUNICIPAL BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED
AUGUST 31, YEAR ENDED DECEMBER 31,
CLASS Z SHARES 2003(a) 2002(b) 2001 2000 1999(c)
----------- -------- --------- --------- ---------
NET ASSET VALUE, BEGINNING OF PERIOD .......... $ 10.28 $ 9.77 $ 9.82 $ 9.28 $ 10.00
----------- -------- --------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ...................... 0.27(d) 0.41(d) 0.44(e) 0.44 0.34
Net realized and unrealized gain
(loss) on investments ................... (0.17) 0.55 (0.03)(e) 0.54 (0.72)
----------- -------- --------- --------- ---------
Total from investment operations ......... 0.10 0.96 0.41 0.98 (0.38)
----------- -------- --------- --------- ---------
LESS DISTRIBUTIONS:
From net investment income ................. (0.26) (0.41) (0.44) (0.44) (0.34)
From net realized gains .................... (0.01) (0.04) (0.02) -- --
----------- -------- --------- --------- ---------
Total distributions ...................... (0.27) (0.45) (0.46) (0.44) (0.34)
----------- -------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD ................ $ 10.11 $ 10.28 $ 9.77 $ 9.82 $ 9.28
----------- -------- --------- --------- ---------
TOTAL RETURN (f)(g) ........................... 1.00%(h) 10.04% 4.16% 10.87% (3.93)%(h)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ...... $ 14,349 $ 16,470 $ 13,769 $ 10,898 $ 10,135
Ratio of expenses to average net assets (i) ... 0.65%(j) 0.65% 0.65% 0.65% 0.65%(j)
Ratio of net investment income to
average net assets (i) ....................... 3.86%(j) 4.10% 4.44%(e) 4.68% 4.21%(j)
Reimbursement (i) ............................. 1.90%(j) 0.50% 0.66% 0.64% 1.07%(j)
Portfolio turnover rate ....................... 12%(h) 43% 20% 21% 12%(h)
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were redesignated
Class Z shares.
(c) The Fund commenced investment operations on February 10, 1999. Per share
data, total return and portfolio turnover rate reflect activity from
that date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) 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 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 Per share data and ratios for periods prior
to realized and unrealized loss per share was 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.
(f) Total return at net asset value assuming all distributions reinvested.
(g) Had the Advisor not waived or reimbursed a portion of expenses, total
return would have been reduced.
(h) Not annualized.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
See Accompanying Notes to Financial Statements
67
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA OREGON MUNICIPAL BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS A SHARES 2003(a) 2002(b)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 12.50 $ 12.52
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) .............................. 0.29 0.08
Net realized and unrealized gain (loss) on investments . (0.22) 0.07
------------ ------------
Total from investment operations ..................... 0.07 0.15
------------ ------------
LESS DISTRIBUTIONS:
From net investment income ............................. (0.31) (0.08)
Distributions from capital gains ....................... (0.01) (0.09)
------------ ------------
Total distributions .................................. (0.32) (0.17)
------------ ------------
NET ASSET VALUE, END OF PERIOD ............................ $ 12.25 $ 12.50
------------ ------------
TOTAL RETURN (d)(e) ....................................... 0.56% 1.19%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .................. $ 2,138 $ 477
Ratio of expenses to average net assets (f)(g) ............ 1.16% 0.92%
Ratio of net investment income to average net assets (f)(g) 3.52% 4.11%
Portfolio turnover rate ................................... 10%(e) 21%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class A shares were initially offered on November 1, 2002. Per share data
and total return 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 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.
See Accompanying Notes to Financial Statements
68
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA OREGON MUNICIPAL BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS B SHARES 2003(a) 2002(b)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 12.50 $ 12.52
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) .............................. 0.24 0.06
Net realized and unrealized gain (loss) on investments . (0.23) 0.08
------------ ------------
Total from investment operations ..................... 0.01 0.14
------------ ------------
LESS DISTRIBUTIONS:
From net investment income ............................. (0.25) (0.07)
Distributions from capital gains ....................... (0.01) (0.09)
------------ ------------
Total distributions .................................. (0.26) (0.16)
------------ ------------
NET ASSET VALUE, END OF PERIOD ............................ $ 12.25 $ 12.50
------------ ------------
TOTAL RETURN (d)(e) ....................................... 0.05% 1.10%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .................. $ 999 $ 373
Ratio of expenses to average net assets (f)(g) ............ 1.86% 1.67%
Ratio of net investment income to average net assets (f)(g) 2.83% 3.36%
Portfolio turnover rate ................................... 10%(e) 21%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class B shares were initially offered on November 1, 2002. Per share data
and total return 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 and 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.
See Accompanying Notes to Financial Statements
69
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA OREGON MUNICIPAL BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS D SHARES 2003(a) 2002(b)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 12.50 $ 12.52
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) .............................. 0.27 0.07
Net realized and unrealized gain (loss) on investments . (0.23) 0.07
------------ ------------
Total from investment operations ..................... 0.04 0.14
------------ ------------
LESS DISTRIBUTIONS:
From net investment income ............................. (0.28) (0.07)
Distributions from capital gains ....................... (0.01) (0.09)
------------ ------------
Total distributions .................................. (0.29) (0.16)
------------ ------------
NET ASSET VALUE, END OF PERIOD ............................ $ 12.25 $ 12.50
------------ ------------
TOTAL RETURN (d)(e)(f) .................................... 0.32% 1.14%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .................. $ 700 $ 448
Ratio of expenses to average net assets (g)(h) ............ 1.43% 1.32%
Ratio of net investment income to average net assets (g)(h) 3.30% 3.71%
Waiver (h)(i) ............................................. 0.35% 0.35%
Portfolio turnover rate ................................... 10%(f) 21%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class D shares were initially offered on November 1, 2002. Per share data
and total return 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
and no initial sales charge or contingent deferred sales charge.
(e) Had the Distributor not waived or reimbursed a portion of expenses, total
return would have been reduced.
(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.
(i) Amounts represent voluntary waivers of distribution and service fees.
See Accompanying Notes to Financial Statements
70
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA OREGON MUNICIPAL BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED
AUGUST 31, YEAR ENDED DECEMBER 31,
CLASS Z SHARES ............................ 2003(a) 2002(b) 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 .................. 0.34(c) 0.55(c) 0.57(d) 0.58 0.56 0.58
Net realized and unrealized gain
(loss) on investments ................. (0.23) 0.54 (0.02)(d) 0.58 (0.88) 0.10
----------- --------- --------- --------- ----------- -----------
Total from investment operations ..... 0.11 1.09 0.55 1.16 (0.32) 0.68
----------- --------- --------- --------- ----------- -----------
LESS DISTRIBUTIONS:
From net investment income ............. (0.35) (0.55) (0.57) (0.58) (0.56) (0.58)
From net realized gains ................ (0.01) (0.12) (0.03) (0.01) (0.02) (0.11)
----------- --------- --------- --------- ----------- -----------
Total distributions .................. (0.36) (0.67) (0.60) (0.59) (0.58) (0.69)
----------- --------- --------- --------- ----------- -----------
NET ASSET VALUE, END OF PERIOD ............ $ 12.25 $ 12.50 $ 12.08 $ 12.13 $ 11.56 $ 12.46
----------- --------- --------- --------- ----------- -----------
TOTAL RETURN (e) .......................... 0.83%(f) 9.24% 4.55% 10.28% (2.65)% 5.58%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .. $ 485,427 $ 508,865 $ 491,638 $ 436,544 $ 409,919 $ 462,809
Ratio of expenses to average net assets (g) 0.68%(h) 0.58% 0.57% 0.58% 0.57% 0.58%
Ratio of net investment income to
average net assets (g) ................... 4.13%(h) 4.45% 4.64%(d) 4.92% 4.64% 4.60%
Portfolio turnover rate ................... 10%(f) 21% 14% 22% 28% 17%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were redesignated Class
Z shares.
(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 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.
(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
71
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA HIGH YIELD FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS A SHARES 2003(a) 2002(b)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 8.37 $ 8.17
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) .............................. 0.33 0.09
Net realized and unrealized gain on investments ........ 0.15 0.20
------------ ------------
Total from investment operations ..................... 0.48 0.29
------------ ------------
LESS DISTRIBUTIONS:
From net investment income ............................. (0.36) (0.09)
------------ ------------
NET ASSET VALUE, END OF PERIOD ............................ $ 8.49 $ 8.37
------------ ------------
TOTAL RETURN (d)(e) ....................................... 5.81% 3.50%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .................. $ 193,267 $ 33,992
Ratio of expenses to average net assets (f)(g) ............ 1.07% 1.15%
Ratio of net investment income to average net assets (f)(g) 5.82% 6.46%
Portfolio turnover rate ................................... 38%(e) 42%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class A shares were initially offered on November 1, 2002. Per share data
and total return 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 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.
See Accompanying Notes to Financial Statements
72
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA HIGH YIELD FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS B SHARES 2003(a) 2002(b)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 8.37 $ 8.17
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) .............................. 0.28 0.07
Net realized and unrealized gain on investments ........ 0.15 0.20
------------ ------------
Total from investment operations ..................... 0.43 0.27
------------ ------------
LESS DISTRIBUTIONS:
From net investment income ............................. (0.31) (0.07)
------------ ------------
NET ASSET VALUE, END OF PERIOD ............................ $ 8.49 $ 8.37
------------ ------------
TOTAL RETURN (d)(e) ....................................... 5.20% 3.33%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .................. $ 89,950 $ 16,701
Ratio of expenses to average net assets (f)(g) ............ 1.94% 1.90%
Ratio of net investment income to average net assets (f)(g) 4.93% 5.71%
Portfolio turnover rate ................................... 38%(e) 42%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class B shares were initially offered on November 1, 2002. Per share data
and total return 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 and
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.
See Accompanying Notes to Financial Statements
73
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA HIGH YIELD FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED
AUGUST 31, DECEMBER 31,
CLASS D SHARES 2003(a) 2002(b)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 8.37 $ 8.17
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) .............................. 0.29 0.07
Net realized and unrealized gain on investments ........ 0.15 0.20
------------ ------------
Total from investment operations ..................... 0.44 0.27
------------ ------------
LESS DISTRIBUTIONS:
From net investment income ............................. (0.32) (0.07)
------------ ------------
NET ASSET VALUE, END OF PERIOD ............................ $ 8.49 $ 8.37
------------ ------------
TOTAL RETURN (d)(e)(f) .................................... 5.35% 3.35%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .................. $ 103,559 $ 18,035
Ratio of expenses to average net assets (g)(h) ............ 1.73% 1.75%
Ratio of net investment income to average net assets (g)(h) 5.12% 5.86%
Waiver (h)(i) ............................................. 0.15% 0.15%
Portfolio turnover rate ................................... 38%(f) 42%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) Class D shares were initially offered on November 1, 2002. Per share data
and total return 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 and
no initial sales charge or contingent deferred sales charge.
(e) Had the Distributor not waived a portion of expenses, total return would
have been reduced.
(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.
(i) Amounts represent voluntary waivers of distribution and service fees.
See Accompanying Notes to Financial Statements
74
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA HIGH YIELD FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED
AUGUST 31, YEAR ENDED DECEMBER 31,
CLASS Z SHARES 2003(a) 2002(b) 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 .................. 0.35(c) 0.57(c) 0.67(d) 0.75 0.74 0.76
Net realized and unrealized gain
(loss) on investments ................ 0.15 (0.48) (0.09)(d) (0.34) (0.51) (0.15)
------------ ---------- --------- -------- --------- ---------
Total from investment operations ..... 0.50 0.09 0.58 0.41 0.23 0.61
------------ ---------- --------- -------- --------- ---------
LESS DISTRIBUTIONS:
From net investment income ............. (0.38) (0.59) (0.69) (0.75) (0.74) (0.76)
From net realized gains ................ -- -- -- -- (0.01) (0.05)
------------ ---------- --------- -------- --------- ---------
Total distributions .................. (0.38) (0.59) (0.69) (0.75) (0.75) (0.81)
------------ ---------- --------- -------- --------- ---------
NET ASSET VALUE, END OF PERIOD ............ $ 8.49 $ 8.37 $ 8.87 $ 8.98 $ 9.32 $ 9.84
------------ ---------- --------- -------- --------- ---------
TOTAL RETURN (e) .......................... 6.04%(f) 1.17% 6.63% 4.61% 2.38% 6.26%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .. $ 1,197,340 $ 702,785 $ 238,994 $ 97,575 $ 71,678 $ 57,524
Ratio of expenses to average net assets (g) 0.82%(h) 0.77% 0.85% 0.93% 0.91% 0.95%
Ratio of net investment income to
average net assets (g) .................. 6.19%(h) 6.84% 7.47%(d) 8.22% 7.71% 7.52%
Portfolio turnover rate ................... 38%(f) 42% 69% 50% 49% 79%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were redesignated
Class Z shares.
(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 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 unrealized and realized 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.
(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
75
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA DAILY INCOME COMPANY
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED
AUGUST 31, YEAR ENDED DECEMBER 31,
CLASS Z SHARES 2003(a) 2002(b) 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 .................. 0.004(c) 0.012(c) 0.036 0.058 0.046 0.050
------------ ----------- ----------- ----------- ----------- ------------
LESS DISTRIBUTIONS:
From net investment income ............. (0.004) (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 (d) .......................... 0.40%(e) 1.17% 3.70% 6.00% 4.71% 5.09%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)... $ 898,164 $ 1,136,075 $ 1,253,535 $ 1,198,151 $ 1,165,289 $ 1,109,141
Ratio of expenses to average net assets (f) 0.69%(g) 0.60% 0.60% 0.60% 0.64% 0.62%
Ratio of net investment income
to average net assets (f) ................ 0.53%(g) 1.16% 3.61% 5.82% 4.61% 4.97%
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing shares were redesignated Class Z shares.
(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) 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
76
This page intentionally left blank.
77
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA COMMON STOCK FUND
AUGUST 31, 2003
SHARES VALUE
- -----------------------------------------------------------------------------
COMMON STOCKS (98.9%)
CONSUMER DISCRETIONARY (18.5%)
HOTELS, RESTAURANTS & LEISURE (4.6%)
Hilton Hotels Corp...................... 161,600 $ 2,469,248
McDonald's Corp......................... 277,650 6,224,913
Royal Caribbean Cruises Ltd............. 148,000 4,610,200
Yum! Brands, Inc. (a)................... 209,800 6,220,570
-------------
19,524,931
-------------
INTERNET & CATALOG RETAIL (0.8%)
eBay, Inc. (a).......................... 61,940 3,430,237
-------------
MEDIA (3.8%)
AOL Time Warner, Inc. (a)............... 265,864 4,349,535
Clear Channel Communications,
Inc. (a)............................. 47,125 2,126,280
Comcast Corp., Class A (a).............. 71,667 2,132,093
Interpublic Group of Companies,
Inc. ................................ 92,300 1,398,345
Liberty Media Corp., Class A (a)........ 354,411 4,288,373
Viacom, Inc., Class B (a)............... 44,500 2,002,500
-------------
16,297,126
-------------
MULTI-LINE RETAIL (5.4%)
Dollar General Corp..................... 174,350 3,997,846
Kohl's Corp. (a)........................ 129,260 8,175,695
Target Corp. ........................... 165,450 6,717,270
Wal-Mart Stores, Inc.................... 72,235 4,274,145
-------------
23,164,956
-------------
SPECIALTY RETAIL (2.4%)
Best Buy Co., Inc. (a).................. 85,550 4,449,456
Linens'n Things, Inc. (a)............... 114,500 3,309,050
Lowe's Companies, Inc................... 44,325 2,431,670
-------------
10,190,176
-------------
TEXTILES, APPAREL & LUXURY GOODS (1.5%)
NIKE, Inc., Class B..................... 58,750 3,347,575
Reebok International Ltd................ 93,700 3,134,265
-------------
6,481,840
-------------
CONSUMER STAPLES (4.3%)
BEVERAGES (1.0%)
PepsiCo, Inc............................ 91,675 4,083,204
-------------
FOOD PRODUCTS (0.2%)
Hershey Foods Corp. .................... 14,300 999,570
-------------
HOUSEHOLD PRODUCTS (0.3%)
Procter & Gamble Co..................... 14,075 1,228,607
-------------
SHARES VALUE
- -----------------------------------------------------------------------------
PERSONAL PRODUCTS (1.2%)
Alberto-Culver Co., Class B............. 64,650 $ 3,690,222
Gillette Co............................. 46,100 1,496,406
-------------
5,186,628
-------------
TOBACCO (1.6%)
Altria Group, Inc....................... 164,700 6,788,934
-------------
ENERGY (8.1%)
ENERGY EQUIPMENT & SERVICES (3.7%)
BJ Services Co. (a)..................... 84,440 3,155,523
Cooper Cameron Corp. (a)................ 20,930 1,016,361
ENSCO International, Inc................ 78,900 2,205,255
Nabors Industries Ltd. (a).............. 79,300 3,183,895
Noble Corp. (a)......................... 92,540 3,348,097
Schlumberger Ltd........................ 57,900 2,866,629
-------------
15,775,760
-------------
OIL & GAS (4.4%)
Apache Corp............................. 73,344 5,059,269
ConocoPhillips.......................... 42,725 2,385,764
Devon Energy Corp....................... 39,225 2,029,894
EOG Resources, Inc...................... 36,750 1,558,200
Equitable Resources, Inc................ 40,100 1,582,747
Exxon Mobil Corp........................ 135,782 5,118,981
Pioneer Natural Resources
Co. (a).............................. 40,600 1,029,616
-------------
18,764,471
-------------
FINANCIALS (20.6%)
BANKS (4.1%)
Bank of America Corp.................... 114,005 9,034,896
Bank One Corp. ......................... 98,625 3,892,729
Fifth Third Bancorp..................... 14,100 826,260
U.S. Bancorp............................ 33,800 807,820
Wells Fargo & Co........................ 62,300 3,123,722
-------------
17,685,427
-------------
DIVERSIFIED FINANCIALS (11.2%)
American Express Co..................... 190,475 8,580,899
Citigroup, Inc.......................... 482,964 20,936,489
Fannie Mae.............................. 38,525 2,496,035
Goldman Sachs Group, Inc................ 34,400 3,044,056
J.P. Morgan Chase & Co. ................ 61,685 2,110,861
MBNA Corp............................... 150,900 3,522,006
Merrill Lynch & Co., Inc................ 77,875 4,188,118
Morgan Stanley.......................... 63,375 3,092,066
-------------
47,970,530
-------------
See Accompanying Notes to Financial Statements
78
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
SHARES VALUE
- -----------------------------------------------------------------------------
INSURANCE (5.3%)
American International Group,
Inc. ................................ 102,937 $ 6,131,957
Chubb Corp.............................. 85,300 5,795,282
Hartford Financial Services Group,
Inc. ................................ 84,300 4,486,446
Marsh & McLennan Companies,
Inc. ................................ 41,575 2,078,750
Prudential Financial, Inc............... 115,200 4,194,432
-------------
22,686,867
-------------
HEALTH CARE (13.4%)
BIOTECHNOLOGY (1.3%)
Amgen, Inc. (a)......................... 67,057 4,419,056
Gilead Sciences, Inc. (a)............... 16,050 1,069,071
-------------
5,488,127
-------------
HEALTH CARE EQUIPMENT & SUPPLIES (1.3%)
Applera Corp. - Applied Biosystems
Group................................ 83,900 1,825,664
Becton, Dickinson & Co.................. 106,200 3,880,548
-------------
5,706,212
-------------
HEALTH CARE PROVIDERS & SERVICES (2.4%)
Aetna, Inc.............................. 34,600 1,972,200
Caremark Rx, Inc. (a)................... 100,900 2,535,617
McKesson Corp........................... 87,775 2,873,754
UnitedHealth Group, Inc................. 16,300 805,709
WellPoint Health Networks,
Inc. (a)............................. 25,050 1,953,900
-------------
10,141,180
-------------
PHARMACEUTICALS (8.4%)
Bristol-Myers Squibb Co................. 173,518 4,402,152
Forest Laboratories, Inc. (a)........... 40,500 1,903,500
Johnson & Johnson....................... 139,975 6,939,960
Medco Health Solutions, Inc. (a)........ 3,642 97,245
Novartis AG, ADR........................ 108,000 3,992,760
Pfizer, Inc............................. 420,239 12,573,551
Shire Pharmaceuticals Group
PLC, ADR (a)......................... 105,500 2,452,875
Wyeth................................... 90,350 3,871,498
-------------
36,233,541
-------------
INDUSTRIALS (12.1%)
AEROSPACE & DEFENSE (2.3%)
L-3 Communications Holdings,
Inc. (a)............................. 100,200 5,119,218
Northrop Grumman Corp. ................. 48,300 4,611,684
-------------
9,730,902
-------------
SHARES VALUE
- -----------------------------------------------------------------------------
AIR FREIGHT & LOGISTICS (1.1%)
FedEx Corp.............................. 32,875 $ 2,205,912
Ryder System, Inc....................... 78,500 2,357,355
-------------
4,563,267
-------------
COMMERCIAL SERVICES & SUPPLIES (1.8%)
First Data Corp......................... 47,150 1,810,560
Waste Management, Inc. ................. 219,900 5,851,539
-------------
7,662,099
-------------
ELECTRICAL EQUIPMENT (0.5%)
Emerson Electric Co..................... 38,900 2,169,064
-------------
INDUSTRIAL CONGLOMERATES (4.2%)
3M Co................................... 30,525 4,348,897
General Electric Co..................... 466,700 13,800,319
-------------
18,149,216
-------------
MACHINERY (2.2%)
Deere & Co.............................. 90,000 5,085,900
Dover Corp.............................. 62,200 2,364,844
SPX Corp. (a)........................... 44,600 2,201,010
-------------
9,651,754
-------------
INFORMATION TECHNOLOGY (19.1%)
COMMUNICATIONS EQUIPMENT (2.6%)
Cisco Systems, Inc. (a)................. 223,190 4,274,088
Emulex Corp. (a)........................ 102,810 2,489,030
Motorola, Inc. ......................... 142,000 1,523,660
QUALCOMM, Inc........................... 66,375 2,739,960
-------------
11,026,738
-------------
COMPUTERS & PERIPHERALS (0.4%)
EMC Corp. (a)........................... 125,400 1,598,850
-------------
INTERNET SOFTWARE & SERVICES (0.9%)
Yahoo!, Inc. (a)........................ 111,300 3,717,420
-------------
OFFICE ELECTRONICS (0.1%)
Xerox Corp. (a)......................... 53,400 573,900
-------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (7.4%)
Advanced Micro Devices, Inc. (a)........ 232,200 2,621,538
Broadcom Corp., Class A (a)............. 84,200 2,300,344
Intel Corp.............................. 175,675 5,027,818
Linear Technology Corp.................. 86,000 3,544,920
Marvell Technology Group Ltd. (a)....... 69,900 2,947,683
National Semiconductor Corp. (a)........ 103,425 3,013,804
NVIDIA Corp. (a)........................ 152,900 2,776,664
Silicon Laboratories, Inc. (a).......... 77,200 3,428,452
Taiwan Semiconductor
Manufacturing Co., Ltd., ADR (a)..... 297,021 3,498,907
Vitesse Semiconductor Corp. (a)......... 154,300 1,053,869
Xilinx, Inc. (a)........................ 58,800 1,813,392
-------------
32,027,391
-------------
See Accompanying Notes to Financial Statements
79
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA COMMON STOCK FUND (CONT.)
AUGUST 31, 2003
SHARES VALUE
- -----------------------------------------------------------------------------
SOFTWARE (7.7%)
Amdocs Ltd. (a)......................... 128,200 $ 2,869,116
BEA Systems, Inc. (a)................... 98,600 1,336,030
Computer Associates
International, Inc................... 77,800 1,994,014
Mercury Interactive Corp. (a)........... 55,900 2,453,451
Microsoft Corp.......................... 575,925 15,273,531
Oracle Corp. (a)........................ 297,640 3,803,839
Symantec Corp. (a)...................... 35,725 2,051,687
VERITAS Software Corp. (a).............. 92,400 3,185,952
-------------
32,967,620
-------------
MATERIALS (1.6%)
CHEMICALS (1.0%)
Air Products & Chemicals, Inc........... 49,150 2,325,778
Praxair, Inc............................ 34,925 2,228,914
-------------
4,554,692
-------------
CONTAINERS & PACKAGING (0.6%)
Smurfit-Stone Container Corp. (a)....... 155,000 2,445,900
-------------
TELECOMMUNICATION SERVICES (0.6%)
DIVERSIFIED TELECOMMUNICATION SERVICES (0.6%)
SBC Communications, Inc................. 53,530 1,203,890
Verizon Communications, Inc............. 41,870 1,478,848
-------------
2,682,738
-------------
UTILITIES (0.6%)
ELECTRIC UTILITIES (0.6%)
Consolidated Edison, Inc................ 27,000 1,067,310
DTE Energy Co........................... 43,000 1,501,130
-------------
2,568,440
-------------
Total Common Stocks
(Cost of $349,417,672)............... 423,918,315
-------------
PREFERRED STOCK (0.6%)
CONSUMER DISCRETIONARY (0.6%)
MEDIA (0.6%)
News Corp., Ltd., ADR
(Cost of $1,862,298)................. 88,225 2,551,466
-------------
PAR VALUE
- -----------------------------------------------------------------------------
SHORT-TERM OBLIGATION (3.1%)
Repurchase agreement with State
Street Bank & Trust Co., dated
08/29/03, due 09/02/03 at 0.860%,
collateralized by a U.S. Treasury
Note maturing 11/15/03,
market value of $13,458,826
(repurchase proceeds $13,194,261)
(Cost of $13,193,000)................ $13,193,000 $ 13,193,000
-------------
TOTAL INVESTMENTS (102.6%)
(Cost of $364,472,970) (b)........... 439,662,781
-------------
OTHER ASSETS & LIABILITIES, NET (-2.6%)...... (11,038,063)
-------------
NET ASSETS (100.0%).......................... $ 428,624,718
=============
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Non-income producing.
(b) Cost for federal income tax purposes is $369,008,558.
ACRONYM NAME
------- ----
ADR American Depositary Receipt
COLUMBIA GROWTH FUND
AUGUST 31, 2003
SHARES VALUE
- -----------------------------------------------------------------------------
COMMON STOCKS (98.8%)
CONSUMER DISCRETIONARY (18.0%)
HOTELS, RESTAURANTS & LEISURE (1.2%)
Wendy's International, Inc.............. 223,620 $ 7,055,211
Yum! Brands, Inc. (a)................... 128,580 3,812,397
-------------
10,867,608
-------------
HOUSEHOLD DURABLES (0.6%)
Garmin Ltd.............................. 93,000 3,717,210
Matsushita Electric Industrial Co.,
Ltd., ADR............................ 156,500 2,004,765
-------------
5,721,975
-------------
INTERNET & CATALOG RETAIL (2.2%)
eBay, Inc. (a).......................... 216,000 11,962,080
InterActiveCorp (a)..................... 238,750 8,836,137
-------------
20,798,217
-------------
See Accompanying Notes to Financial Statements
80
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
SHARES VALUE
- -----------------------------------------------------------------------------
MEDIA (3.7%)
Clear Channel Communications,
Inc. (a)............................. 309,831 $ 13,979,575
Liberty Media Corp., Class A (a)........ 840,295 10,167,570
Viacom, Inc., Class B................... 170,090 7,654,050
XM Satellite Radio Holdings, Inc.,
Class A (a).......................... 197,400 2,704,380
-------------
34,505,575
-------------
MULTI-LINE RETAIL (3.9%)
Kohl's Corp. (a)........................ 276,454 17,485,716
Target Corp............................. 470,990 19,122,194
-------------
36,607,910
-------------
SPECIALTY RETAIL (6.4%)
AutoZone, Inc. (a)...................... 123,200 11,309,760
Bed Bath & Beyond, Inc. (a)............. 178,360 7,674,831
Chico's FAS, Inc. (a)................... 346,300 11,251,287
Home Depot, Inc......................... 506,700 16,295,472
Lowe's Companies, Inc................... 230,500 12,645,230
-------------
59,176,580
-------------
CONSUMER STAPLES (10.1%)
BEVERAGES (3.6%)
Anheuser-Busch Companies, Inc........... 65,670 3,384,632
Coca-Cola Co............................ 266,380 11,592,858
PepsiCo, Inc............................ 404,740 18,027,120
-------------
33,004,610
-------------
FOOD & DRUG RETAILING (1.3%)
Sysco Corp.............................. 204,110 6,421,301
Whole Foods Market, Inc. (a)............ 110,400 5,984,784
-------------
12,406,085
-------------
FOOD & STAPLES RETAILING (2.6%)
Wal-Mart Stores, Inc.................... 409,990 24,259,108
-------------
FOOD PRODUCTS (1.0%)
Dean Foods Co. (a)...................... 307,700 8,938,685
-------------
HOUSEHOLD PRODUCTS (0.9%)
Procter & Gamble Co..................... 99,260 8,664,405
-------------
PERSONAL PRODUCTS (0.7%)
Alberto-Culver Co., Class B............. 121,830 6,954,056
-------------
ENERGY (3.4%)
ENERGY EQUIPMENT & SERVICES (2.9%)
BJ Services Co. (a)..................... 137,790 5,149,212
Nabors Industries Ltd. (a).............. 146,550 5,883,982
Noble Corp. (a)......................... 98,250 3,554,685
Schlumberger Ltd........................ 133,700 6,619,487
Smith International, Inc. (a)........... 158,200 6,184,038
-------------
27,391,404
-------------
SHARES VALUE
- -----------------------------------------------------------------------------
OIL & GAS (0.5%)
Apache Corp............................. 66,000 $ 4,552,680
-------------
FINANCIALS (6.7%)
CAPITAL MARKETS (1.1%)
Goldman Sachs Group, Inc................ 116,490 10,308,200
-------------
DIVERSIFIED FINANCIALS (3.0%)
Citigroup, Inc.......................... 642,626 27,857,837
-------------
INSURANCE (1.3%)
American International Group, Inc....... 201,014 11,974,404
-------------
THRIFTS & MORTGAGE FINANCE (1.3%)
Fannie Mae.............................. 192,930 12,499,935
-------------
HEALTH CARE (24.1%)
BIOTECHNOLOGY (3.5%)
Amgen, Inc. (a)......................... 388,700 25,615,330
Gilead Sciences, Inc. (a)............... 96,900 6,463,230
-------------
32,078,560
-------------
HEALTH CARE EQUIPMENT & SUPPLIES (5.5%)
Alcon, Inc.............................. 294,100 15,366,725
Boston Scientific Corp. (a)............. 148,370 8,917,037
Medtronic, Inc. ........................ 356,155 17,658,165
St. Jude Medical, Inc. (a).............. 174,100 9,065,387
-------------
51,007,314
-------------
HEALTH CARE PROVIDERS & SERVICES (3.1%)
Anthem, Inc. (a)........................ 81,350 5,954,820
Caremark Rx, Inc. (a)................... 234,200 5,885,446
McKesson Corp........................... 189,800 6,214,052
UnitedHealth Group, Inc................. 213,520 10,554,294
-------------
28,608,612
-------------
PHARMACEUTICALS (12.0%)
Abbott Laboratories..................... 207,600 8,366,280
Biovail Corp. (a)....................... 270,300 11,225,559
Johnson & Johnson....................... 272,550 13,513,029
Pfizer, Inc............................. 1,608,333 48,121,323
Teva Pharmaceutical Industries
Ltd., ADR............................ 213,470 12,533,251
Watson Pharmaceuticals, Inc. (a)........ 234,100 9,621,510
Wyeth................................... 200,010 8,570,428
-------------
111,951,380
-------------
INDUSTRIALS (6.5%)
AEROSPACE & DEFENSE (0.6%)
L-3 Communications Holdings,
Inc. (a)............................. 102,400 5,231,616
-------------
AIR FREIGHT & LOGISITICS (0.7%)
FedEx Corp.............................. 102,500 6,877,750
-------------
See Accompanying Notes to Financial Statements
81
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA GROWTH FUND (CONT.)
AUGUST 31, 2003
SHARES VALUE
- -----------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES (5.2%)
General Electric Co..................... 1,289,785 $ 38,138,942
Tyco International Ltd.................. 478,400 9,845,472
-------------
47,984,414
-------------
INFORMATION TECHNOLOGY (28.7%)
COMMUNICATIONS EQUIPMENT (5.3%)
Cisco Systems, Inc. (a)................. 1,473,875 28,224,706
Juniper Networks, Inc. (a).............. 43,400 747,348
Motorola, Inc. ......................... 178,200 1,912,086
Nokia Oyj, ADR.......................... 61,900 1,008,351
QUALCOMM, Inc........................... 138,800 5,729,664
UTStarcom, Inc. (a)..................... 259,300 11,139,528
-------------
48,761,683
-------------
COMPUTERS & PERIPHERALS (2.9%)
Apple Computer, Inc. (a)................ 131,500 2,975,845
Dell, Inc. (a).......................... 610,690 19,926,815
Lexmark International, Inc. (a)......... 55,550 3,724,072
-------------
26,626,732
-------------
INTERNET SOFTWARE & SERVICES (0.9%)
Sohu.com, Inc. (a)...................... 24,300 729,486
Yahoo!, Inc. (a)........................ 227,400 7,595,160
-------------
8,324,646
-------------
IT SERVICES (1.7%)
Concord EFS, Inc. (a)................... 488,100 6,760,185
First Data Corp......................... 240,540 9,236,736
-------------
15,996,921
-------------
OFFICE ELECTRONICS (0.2%)
Canon, Inc., ADR........................ 45,700 2,214,622
-------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (10.0%)
Advanced Micro Devices, Inc. (a)........ 401,300 4,530,677
Analog Devices, Inc. (a)............... 126,000 5,166,000
ASML Holding NV,
NY Registered Shares (a)............. 363,600 5,781,240
Infineon Technologies AG, ADR (a)....... 160,500 2,359,350
Intel Corp.............................. 1,562,870 44,729,339
Intersil Corp., Class A (a)............. 48,500 1,412,805
Marvell Technology Group Ltd. (a)....... 146,500 6,177,905
Maxim Integrated Products, Inc.......... 27,600 1,239,516
Microchip Technology, Inc............... 92,350 2,586,724
NVIDIA Corp. (a)........................ 230,550 4,186,788
PMC-Sierra, Inc. (a).................... 398,600 5,684,036
Taiwan Semiconductor
Manufacturing Co., Ltd., ADR (a)..... 473,900 5,582,542
SHARES VALUE
- -----------------------------------------------------------------------------
Texas Instruments, Inc.................. 60,820 $ 1,450,557
Xilinx, Inc. (a)........................ 61,500 1,878,487
-------------
92,765,966
-------------
SOFTWARE (7.7%)
Adobe Systems, Inc...................... 143,200 5,560,456
Amdocs Ltd. (a)......................... 148,000 3,312,240
Electronic Arts, Inc. (a)............... 74,030 6,644,192
Microsoft Corp.......................... 1,618,100 42,912,012
Oracle Corp. (a)........................ 553,490 7,073,602
VERITAS Software Corp. (a).............. 176,800 6,096,064
-------------
71,598,566
-------------
TELECOMMUNICATION SERVICES (1.3%)
DIVERSIFIED TELECOMMUNICATION SERVICES (0.2%)
Verizon Communications, Inc............. 49,100 1,734,212
-------------
WIRELESS TELECOMMUNICATION SERVICES (1.1%)
American Tower Corp.,
Class A (a).......................... 427,600 4,866,088
AT&T Wireless Services, Inc. (a)........ 363,800 3,135,956
Crown Castle International
Corp. (a)............................ 188,460 2,025,945
-------------
10,027,989
-------------
Total Common Stocks
(Cost of $738,395,893)............... 918,280,257
-------------
PREFERRED STOCK (0.6%)
CONSUMER DISCRETIONARY (0.6%)
MEDIA (0.6%)
News Corp., Ltd., ADR
(Cost of $4,078,855)................. 181,825 5,258,379
-------------
SHORT-TERM OBLIGATION (1.9%) PAR
Repurchase agreement with State
Street Bank & Trust Co., dated
08/29/03, due 09/02/03 at 0.860%,
collateralized by a U.S. Treasury
Note maturing 03/31/05,
market value $18,291,000
(repurchase proceeds $17,933,714)
(Cost of $17,932,000)................ $17,932,000 17,932,000
-------------
TOTAL INVESTMENTS (101.3%)
(Cost of $760,406,748) (b)........... 941,470,636
-------------
OTHER ASSETS & LIABILITIES, NET (-1.3%)...... (11,734,384)
-------------
NET ASSETS (100.0%).......................... $ 929,736,252
=============
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Non-income producing.
(b) Cost for federal income tax purposes is $785,885,764.
ACRONYM NAME
------- ----
ADR American Depositary Receipt
See Accompanying Notes to Financial Statements
82
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA INTERNATIONAL STOCK FUND
AUGUST 31, 2003
SHARES VALUE
- -----------------------------------------------------------------------------
COMMON STOCKS (95.3%)
CONSUMER DISCRETIONARY (17.4%)
AUTO COMPONENTS (0.2%)
F.C.C. Co., Ltd. ....................... 19,900 $ 586,674
Nissan Shatai Co., Ltd.................. 2,500 8,120
-------------
594,794
-------------
AUTOMOBILES (1.0%)
Honda Motor Co., Ltd.................... 38,600 1,571,325
Nissan Motor Co., Ltd................... 108,000 1,159,738
-------------
2,731,063
-------------
HOTELS, RESTAURANTS & LEISURE (1.0%)
Accor SA................................ 68,322 2,665,648
-------------
HOUSEHOLD DURABLES (5.0%)
Koninklijke (Royal) Philips
Electronics NV....................... 135,200 3,299,635
Matsushita Electric Industrial
Co., Ltd............................. 435,000 5,547,243
Pioneer Corp............................ 146,600 3,291,700
Sanyo Electric Co., Ltd................. 455,000 1,848,310
-------------
13,986,888
-------------
INTERNET & CATALOG RETAIL (0.1%)
Belluna Co., Ltd........................ 7,600 299,610
-------------
MEDIA (4.3%)
BEC World PCL........................... 144,500 865,101
British Sky Broadcasting PLC (a)........ 239,100 2,496,935
JC Decaux SA (a)........................ 116,700 1,554,926
Pearson PLC............................. 422,600 4,119,909
VNU NV.................................. 100,900 3,139,162
-------------
12,176,033
-------------
MULTI-LINE RETAIL (1.5%)
Don Quijote Co., Ltd.................... 14,600 725,715
Seiyu Ltd. (a).......................... 326,000 771,102
Wal-Mart de Mexico SA de CV,
Class V.............................. 1,014,000 2,770,274
-------------
4,267,091
-------------
SPECIALTY RETAIL (2.7%)
Kesa Electricals PLC (a)................ 105,820 373,091
Kingfisher PLC.......................... 462,962 1,986,479
Next PLC................................ 160,558 2,725,297
Shimamura Co., Ltd...................... 24,000 1,618,717
USS Co., Ltd............................ 16,720 965,787
-------------
7,669,371
-------------
SHARES VALUE
- -----------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS (1.6%)
LVMH Moet Hennessy Louis
Vuitton SA........................... 35,100 $ 2,112,649
Puma AG................................. 16,400 1,864,235
Sanyo Shokai Ltd........................ 94,000 589,690
-------------
4,566,574
-------------
CONSUMER STAPLES (4.6%)
BEVERAGES (0.7%)
Pernod-Ricard SA........................ 22,050 1,894,409
-------------
FOOD & DRUG RETAILING (0.4%)
Seven-Eleven Japan Co., Ltd............. 38,000 1,038,865
-------------
FOOD PRODUCTS (1.0%)
Nestle SA, Registered Shares............ 9,156 1,995,199
Thai Union Frozen Products PCL.......... 465,200 350,967
Yakult Honsha Co., Ltd.................. 42,000 579,509
-------------
2,925,675
-------------
HOUSEHOLD PRODUCTS (1.0%)
Reckitt Benckiser PLC................... 143,360 2,691,192
-------------
PERSONAL PRODUCTS (0.6%)
L'Oreal SA.............................. 24,720 1,720,237
-------------
TOBACCO (0.9%)
Imperial Tobacco Group PLC.............. 166,900 2,601,255
-------------
ENERGY (4.8%)
OIL & GAS (4.8%)
BP PLC.................................. 110,318 746,575
BP PLC, ADR............................. 120,300 5,018,916
EnCana Corp............................. 54,700 2,051,497
ENI S.p.A. ............................. 270,750 4,095,652
Total SA................................ 9,875 1,516,595
-------------
13,429,235
-------------
FINANCIALS (21.7%)
BANKS (11.7%)
Anglo Irish Bank Corp. PLC.............. 131,200 1,293,551
Banco Popular Espanol SA................ 25,375 1,143,737
Banco Santander Central
Hispano SA........................... 413,300 3,530,389
Barclays PLC............................ 392,856 2,850,761
Credit Agricole SA...................... 215,943 4,106,969
Credit Suisse Group..................... 194,780 6,088,397
Fortis Bank Nederland Holding
NV (a)(b)(c)......................... 4,100 --
Grupo Financiero BBVA Bancomer,
SA de CV, Class B (a)................ 1,696,300 1,375,866
Royal Bank of Scotland
Group PLC............................ 72,071 1,789,513
See Accompanying Notes to Financial Statements
83
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA INTERNATIONAL STOCK FUND (CONT.)
AUGUST 31, 2003
SHARES VALUE
- -----------------------------------------------------------------------------
Siam Commercial Bank Public Co.,
Ltd. (a)............................. 1,721,300 $ 1,633,748
Standard Chartered PLC.................. 303,322 4,048,032
UFJ Holdings, Inc....................... 727 1,943,900
UniCredito Italiano S.p.A............... 680,200 3,163,102
-------------
32,967,965
-------------
DIVERSIFIED FINANCIALS (2.7%)
Euronext NV............................. 70,300 1,763,629
ING Groep NV............................ 210,700 4,113,805
Nomura Holdings, Inc.................... 118,000 1,717,136
-------------
7,594,570
-------------
INSURANCE (4.2%)
Allianz AG (a).......................... 49,600 4,428,201
Daido Life Insurance.................... 417 979,200
Irish Life & Permanent PLC.............. 127,100 1,510,530
Millea Holdings, Inc.................... 373 3,867,935
Mitsui Sumitomo Insurance Co............ 159,000 949,762
-------------
11,735,628
-------------
REAL ESTATE (3.1%)
Land and Houses PCL, NVDR............... 13,098,000 3,410,771
Mitsubishi Estate Co., Ltd.............. 612,000 5,486,155
-------------
8,896,926
-------------
HEALTH CARE (9.6%)
HEALTH CARE EQUIPMENT & SUPPLIES (2.7%)
Olympus Optical Co., Ltd. .............. 149,000 3,422,205
ResMed, Inc. (a)........................ 44,900 1,944,170
Smith & Nephew PLC...................... 345,310 2,211,591
-------------
7,577,966
-------------
PHARMACEUTICALS (6.9%)
Chugai Pharmaceutical Co., Ltd. ........ 191,600 2,029,546
Dr. Reddy's Laboratories, Ltd., ADR..... 58,000 1,470,300
GlaxoSmithKline PLC..................... 140,226 2,669,965
Novartis AG............................. 110,990 4,083,867
Ranbaxy Laboratories Ltd., GDR.......... 77,000 1,778,700
Roche Holding AG........................ 7,296 559,065
Sanofi-Synthelabo SA.................... 26,264 1,478,315
Sawai Pharmaceutical Co., Ltd. ......... 54,000 1,325,877
Stada Arzneimittel AG................... 8,600 498,626
Takeda Chemical Industries Ltd. ........ 27,000 976,475
Taro Pharmaceuticals Industries
Ltd. (a)............................. 10,700 577,693
Teva Pharmaceutical Industries
Ltd., ADR............................ 35,200 2,066,662
-------------
19,515,091
-------------
SHARES VALUE
- -----------------------------------------------------------------------------
INDUSTRIALS (10.8%)
AIRLINES (0.9%)
Cathay Pacific Airways Ltd.............. 832,000 $ 1,424,137
Singapore Airlines Ltd.................. 188,000 1,200,935
-------------
2,625,072
-------------
COMMERCIAL SERVICES & SUPPLIES (3.1%)
Adecco SA............................... 52,210 2,640,995
Amadeus Global Travel
Distribution SA...................... 705,600 4,731,780
Capita Group PLC........................ 349,975 1,331,907
-------------
8,704,682
-------------
INDUSTRIAL CONGLOMERATES (2.9%)
Big C Supercenter PLC................... 2,815,000 1,281,102
Burberry Group PLC...................... 288,100 1,477,054
JSC MMC Norilsk Nickel, ADR............. 33,500 1,328,275
Siemens AG.............................. 28,800 1,785,697
Smiths Group PLC........................ 192,500 2,137,829
-------------
8,009,957
-------------
MACHINERY (1.3%)
Atlas Copco AB, Class B................. 91,500 2,516,442
Linde AG................................ 30,300 1,269,456
-------------
3,785,898
-------------
TRADING COMPANIES & DISTRIBUTORS (0.5%)
Mitsubishi Corp......................... 156,000 1,318,216
-------------
TRANSPORTATION INFRASTRUCTURE (2.1%)
Abertis Infraestructuras, SA............ 72,821 956,667
BAA PLC................................. 220,679 1,587,433
Cosco Pacific Ltd....................... 1,964,000 2,190,826
Zhejiang Expressway Co., Ltd.,
Class H.............................. 2,500,000 1,210,052
-------------
5,944,978
-------------
INFORMATION TECHNOLOGY (11.5%)
COMMUNICATIONS EQUIPMENT (0.9%)
Nortel Networks Corp. (a)............... 768,400 2,496,787
ELECTRONIC EQUIPMENT & INSTRUMENTS (2.0%)
Ibiden Co., Ltd......................... 89,000 1,442,336
Keyence Corp. .......................... 10,500 2,192,955
TDK Corp................................ 32,200 2,097,270
-------------
5,732,561
-------------
INFORMATION TECHNOLOGY CONSULTING & SERVICES (0.9%)
Indra Sistemas SA....................... 220,500 2,443,460
-------------
INTERNET SOFTWARE & SERVICES (0.7%)
T-Online International AG (a)........... 180,700 1,936,863
-------------
OFFICE ELECTRONICS (1.3%)
Canon, Inc. ............................ 76,000 3,653,940
-------------
See Accompanying Notes to Financial Statements
84
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
SHARES VALUE
- -----------------------------------------------------------------------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (4.9%)
ARM Holdings PLC (a).................... 1,094,800 $ 1,951,565
Samsung Electronics Co., Ltd. .......... 9,000 3,333,333
Taiwan Semiconductor
Manufacturing Co., Ltd., ADR (a)..... 351,000 4,134,780
Tokyo Electron Ltd...................... 60,000 4,226,764
-------------
13,646,442
-------------
SOFTWARE (0.8%)
Dassault Systemes SA.................... 64,291 2,325,317
-------------
MATERIALS (6.3%)
CHEMICALS (0.9%)
L'Air Liquide SA........................ 7,719 1,109,954
Shin-Etsu Chemical Co., Ltd. ........... 32,800 1,287,432
-------------
2,397,386
-------------
CONSTRUCTION MATERIALS (1.4%)
Siam Cement PCL......................... 978,000 4,046,240
-------------
CONTAINERS & PACKAGING (0.8%)
Amcor Ltd............................... 395,100 2,316,720
-------------
METALS & MINING (2.0%)
BHP Billiton Ltd. ...................... 605,100 4,294,633
Companhia Vale do Rio Doce, ADR......... 40,200 1,372,026
-------------
5,666,659
-------------
PAPER & FOREST PRODUCTS (1.2%)
Stora Enso Oyj, Class R................. 175,700 2,290,829
UPM-Kymmene Oyj......................... 61,800 1,121,008
-------------
3,411,837
-------------
TELECOMMUNICATION SERVICES (7.1%)
DIVERSIFIED TELECOMMUNICATION SERVICES (3.2%)
Nippon Telegraph & Telephone
Corp................................. 300 1,321,507
PT Telekomunikasi Indonesia, ADR........ 57,100 639,520
Telecom Italia S.p.A.................... 1,174,827 2,763,910
Telefonica SA (a)....................... 363,484 4,283,673
-------------
9,008,610
-------------
WIRELESS TELECOMMUNICATION SERVICES (3.9%)
NTT DoCoMo, Inc......................... 1,737 4,465,870
Vodafone Group PLC...................... 3,500,729 6,392,182
-------------
10,858,052
-------------
UTILITIES (1.5%)
ELECTRIC UTILITIES (0.9%)
National Grid Transco PLC............... 432,936 2,644,751
-------------
GAS UTILITIES (0.6%)
Snam Rete Gas S.p.A. ................... 442,900 1,621,385
-------------
Total Common Stocks
(Cost of $239,143,971).................. 268,141,899
-------------
UNITS VALUE
- -----------------------------------------------------------------------------
WARRANTS (0.2%)
FINANCIALS (0.2%)
BANKS (0.2%)
Siam Commercial Bank
Public Co., Ltd. (a)
expires 06/22/04
(Cost of $359,604)................... 2,771,666 $ 428,330
-------------
INVESTMENT MANAGEMENT
COMPANY (0.1%) SHARES
Thai Fund, Inc.
(Cost of $144,252)................... 35,100 241,839
-------------
SHORT-TERM OBLIGATION (2.3%) PAR
Repurchase agreement with State
Street Bank & Trust Co., dated
08/31/03, due 09/02/03 at 0.860%,
collateralized by a U.S. Treasury
Note maturing 02/28/05, market
value $6,751,938 (repurchase
proceeds $6,616,632)
(Cost of $6,616,000)................. $ 6,616,000 6,616,000
-------------
TOTAL INVESTMENTS (97.9%)
(Cost of $246,263,827) (d)........... 275,428,068
-------------
OTHER ASSETS & LIABILITIES, NET (2.1%)....... 5,903,491
-------------
NET ASSETS (100.0%).......................... $ 281,331,559
=============
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 August 31, 2003, this
security had no value.
(c) Represents fair value as determined in good faith under the direction of the
Board of Directors.
(d) Cost for federal income tax purposes is $246,594,040.
SUMMARY OF SECURITIES % OF TOTAL
BY COUNTRY (UNAUDITED) VALUE INVESTMENTS
- -----------------------------------------------------------------------------
Japan ..................................... $65,298,103 23.7%
United Kingdom............................... 53,852,232 19.6
France ................................. ... 20,485,020 7.4
Spain ..................................... 17,089,706 6.2
Switzerland.................................. 15,367,523 5.6
Netherlands.................................. 12,316,230 4.5
Thailand..................................... 12,024,742 4.4
Germany ..................................... 11,783,078 4.3
Italy ..................................... 11,644,049 4.2
United States*............................... 8,802,009 3.2
Australia.................................... 6,611,353 2.4
Canada ..................................... 4,548,284 1.7
Mexico ..................................... 4,146,140 1.5
See Accompanying Notes to Financial Statements
85
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA INTERNATIONAL STOCK FUND (CONT.)
AUGUST 31, 2003
SUMMARY OF SECURITIES % OF TOTAL
BY COUNTRY (CONTINUED) VALUE INVESTMENTS
- -----------------------------------------------------------------------------
Taiwan ..................................... $ 4,134,780 1.5%
Hong Kong.................................... 3,614,963 1.3
Finland ..................................... 3,411,837 1.2
Republic of Korea............................ 3,333,333 1.2
India ..................................... 3,249,000 1.2
Ireland ..................................... 2,804,081 1.0
Israel ..................................... 2,644,355 1.0
Sweden ..................................... 2,516,442 0.9
Brazil ..................................... 1,372,026 0.5
Russian Federation........................... 1,328,275 0.5
China ..................................... 1,210,052 0.4
Singapore.................................... 1,200,935 0.4
Indonesia.................................... 639,520 0.2
------------ -------------
$275,428,068 100.0%
============ =============
* 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 MID CAP GROWTH FUND
AUGUST 31, 2003
SHARES VALUE
- -----------------------------------------------------------------------------
COMMON STOCKS (98.2%)
CONSUMER DISCRETIONARY (19.1%)
AUTO COMPONENTS (0.8%)
Gentex Corp............................. 218,700 $ 8,203,437
-------------
HOTELS, RESTAURANTS & LEISURE (4.9%)
Brinker International, Inc. (a)......... 395,440 13,524,048
Darden Restaurants, Inc................. 606,400 13,219,520
MGM Mirage (a).......................... 223,900 8,118,614
Outback Steakhouse, Inc................. 178,950 6,916,418
Starwood Hotels & Resorts
Worldwide, Inc....................... 260,400 8,809,332
-------------
50,587,932
-------------
HOUSEHOLD DURABLES (1.0%)
Garmin Ltd.............................. 260,800 10,424,176
-------------
INTERNET & CATALOG RETAIL (1.0%)
InterActive Corp. (a)................... 271,200 10,037,112
-------------
SHARES VALUE
- -----------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS (0.4%)
Mattel, Inc............................. 212,690 $ 4,109,171
-------------
MEDIA (5.3%)
Citadel Broadcasting Corp. (a).......... 196,700 4,343,136
Cox Radio, Inc., Class A (a)............ 493,900 11,922,746
Interpublic Group of
Companies, Inc. (a).................. 419,600 6,356,940
Univision Communications, Inc.,
Class A (a).......................... 679,450 25,472,581
Westwood One, Inc. (a).................. 226,900 7,283,490
-------------
55,378,893
-------------
MULTI-LINE RETAIL (2.0%)
Dollar Tree Stores, Inc. (a)............ 148,100 5,809,963
Family Dollar Stores, Inc............... 191,100 7,666,932
Kohl's Corp. (a)........................ 121,500 7,684,875
-------------
21,161,770
-------------
SPECIALTY RETAIL (3.7%)
Bed Bath & Beyond, Inc. (a)............. 356,700 15,348,801
Chico's FAS, Inc. (a)................... 226,300 7,352,487
Williams-Sonoma, Inc. (a)............... 504,900 15,454,989
-------------
38,156,277
-------------
CONSUMER STAPLES (1.1%)
FOOD & DRUG RETAILING (0.6%)
Whole Foods Market, Inc. (a)............ 123,300 6,684,093
-------------
FOOD PRODUCTS (0.5%)
Dean Foods Co. (a)...................... 168,400 4,892,020
-------------
ENERGY (7.8%)
ENERGY EQUIPMENT & SERVICES (4.3%)
BJ Services Co. (a)..................... 470,900 17,597,533
Nabors Industries Ltd. (a).............. 142,050 5,703,308
National-Oilwell, Inc. (a).............. 403,700 7,904,446
Noble Corp. (a)......................... 225,000 8,140,500
Patterson-UTI Energy, Inc. (a).......... 184,450 5,503,988
-------------
44,849,775
-------------
OIL & GAS (3.5%)
Apache Corp............................. 194,472 13,414,679
Cross Timbers Royalty Trust............. 2,375 53,066
Murphy Oil Corp. ....................... 139,700 8,064,881
Valero Energy Corp...................... 186,900 7,363,860
XTO Energy, Inc......................... 321,000 6,737,790
-------------
35,634,276
-------------
FINANCIALS (4.0%)
INSURANCE (4.0%)
Ambac Financial Group, Inc.............. 191,500 12,432,180
Arthur J. Gallagher & Co................ 353,250 9,537,750
See Accompanying Notes to Financial Statements
86
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
SHARES VALUE
- -----------------------------------------------------------------------------
Axis Capital Holdings Ltd. (a).......... 225,300 $ 5,531,115
Stancorp Financial Group, Inc........... 253,150 14,351,074
-------------
41,852,119
-------------
HEALTH CARE (23.1%)
BIOTECHNOLOGY (1.3%)
Gilead Sciences, Inc. (a)............... 136,900 9,131,230
ICOS Corp. (a).......................... 122,200 4,758,468
-------------
13,889,698
-------------
HEALTH CARE EQUIPMENT & SUPPLIES (2.1%)
Boston Scientific Corp. (a)............. 172,950 10,394,295
Hillenbrand Industries, Inc............. 87,200 4,721,880
Varian Medical Systems, Inc. (a)........ 120,840 6,748,914
-------------
21,865,089
-------------
HEALTH CARE PROVIDERS & SERVICES (14.6%)
AmerisourceBergen Corp.................. 156,900 9,133,149
Anthem, Inc. (a)........................ 149,550 10,947,060
Caremark Rx, Inc. (a)................... 1,314,450 33,032,128
Community Health Systems,
Inc. (a)............................. 331,080 7,611,529
DaVita, Inc. (a)........................ 357,750 10,875,600
First Health Group Corp. (a)............ 264,000 6,922,080
Health Management
Associates, Inc...................... 344,900 7,684,372
Lincare Holdings, Inc. (a).............. 228,600 7,916,418
UnitedHealth Group, Inc................. 349,200 17,260,956
WebMD Corp. (a)......................... 928,000 9,558,400
WellChoice, Inc. (a).................... 175,900 5,104,618
WellPoint Health Networks,
Inc. (a)............................. 328,000 25,584,000
-------------
151,630,310
-------------
PHARMACEUTICALS (5.1%)
ANDRX Corp. (a)......................... 570,800 10,274,400
Barr Laboratories, Inc. (a)............. 332,575 22,505,350
Biovail Corp. (a)....................... 351,800 14,610,254
Teva Pharmaceutical Industries
Ltd., ADR............................ 93,800 5,507,186
-------------
52,897,190
-------------
INDUSTRIALS (13.7%)
AEROSPACE & DEFENSE (0.9%)
Raytheon Co............................. 306,150 9,815,169
-------------
COMMERCIAL SERVICES & SUPPLIES (8.7%)
BISYS Group, Inc. (a)................... 524,550 9,625,492
ChoicePoint, Inc. (a)................... 302,790 11,884,508
Cintas Corp............................. 123,650 4,937,344
Corporate Executive Board Co. (a)....... 197,700 8,728,455
DST Systems, Inc. (a)................... 128,300 5,080,680
Education Management Corp. (a).......... 167,300 10,232,068
Monster Worldwide, Inc. (a)............. 402,800 11,004,496
SHARES VALUE
- -----------------------------------------------------------------------------
Republic Services, Inc.................. 309,910 $ 7,629,984
Robert Half International, Inc. (a)..... 425,100 9,454,224
Weight Watchers International,
Inc. (a)............................. 263,175 11,408,636
-------------
89,985,887
-------------
ELECTRICAL EQUIPMENT (0.9%)
American Power Conversion Corp.......... 553,700 9,922,304
TRADING COMPANIES & DISTRIBUTORS (3.2%)
CDW Corp................................ 204,900 10,574,889
Fastenal Co. ........................... 258,000 10,430,940
W.W. Grainger, Inc...................... 238,710 11,894,919
-------------
32,900,748
-------------
INFORMATION TECHNOLOGY (29.1%)
COMMUNICATIONS EQUIPMENT (3.1%)
3Com Corp. (a).......................... 1,390,100 7,923,570
Comverse Technology, Inc. (a)........... 235,100 3,876,799
Scientific-Atlanta, Inc................. 197,200 6,704,800
UTStarcom, Inc. (a)..................... 328,400 14,108,064
-------------
32,613,233
-------------
COMPUTERS & PERIPHERALS (0.5%)
Lexmark International, Inc. (a)......... 75,940 5,091,018
-------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (4.2%)
Amphenol Corp., Class A (a)............. 289,500 15,786,435
AU Optronics Corp., ADR................. 500,455 6,776,161
Jabil Circuit, Inc. (a)................. 371,450 10,456,318
Sanmina-SCI Corp. (a)................... 452,400 4,062,552
Symbol Technologies, Inc. .............. 461,800 6,252,772
-------------
43,334,238
-------------
INTERNET SOFTWARE & SERVICES (0.5%)
Check Point Software
Technologies Ltd. (a)................ 334,500 5,843,715
-------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (10.1%)
Agere Systems, Inc. (a)................. 3,712,200 11,210,844
Altera Corp. (a)........................ 260,000 5,834,400
Amkor Technology, Inc. (a).............. 477,800 8,399,724
Fairchild Semiconductor
International, Inc. (a).............. 449,500 7,956,150
Marvell Technology Group Ltd. (a)....... 245,300 10,344,301
MEMC Electronic Materials, Inc. (a)..... 615,100 7,983,998
Microchip Technology, Inc............... 632,750 17,723,328
National Semiconductor Corp. (a)........ 181,500 5,288,910
Novellus Systems, Inc. (a).............. 328,200 13,114,872
Taiwan Semiconductor
Manufacturing Co., Ltd., ADR (a)..... 1,024,056 12,063,380
Teradyne, Inc. (a)...................... 270,430 4,821,767
-------------
104,741,674
-------------
See Accompanying Notes to Financial Statements
87
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA MID CAP GROWTH FUND (CONT.)
AUGUST 31, 2003
SHARES VALUE
- -----------------------------------------------------------------------------
SOFTWARE (10.7%)
Amdocs Ltd. (a)......................... 721,300 $ 16,142,694
BMC Software, Inc. (a).................. 437,600 6,423,968
Electronic Arts, Inc. (a)............... 253,350 22,738,162
Fair Isaac Corp......................... 266,100 15,593,460
Intuit, Inc. (a)........................ 171,625 7,778,045
Mercury Interactive Corp. (a)........... 284,250 12,475,732
Siebel Systems, Inc. (a)................ 507,605 5,116,658
Symantec Corp. (a)...................... 142,950 8,209,618
VERITAS Software Corp. (a).............. 476,150 16,417,652
--------------
110,895,989
--------------
MATERIALS (0.3%)
CHEMICALS (0.3%)
Methanex Corp. ......................... 299,000 3,010,930
--------------
Total Common Stocks
(Cost of $813,820,814)............... 1,020,408,243
--------------
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 (2.7%) PAR
Repurchase agreement with State
Street Bank & Trust Co., dated
08/29/03, due 09/01/03 at 0.860%,
collateralized by a U.S. Treasury
Bond maturing 11/15/03,
market value $28,708,875
(repurchase proceeds $28,147,689)
(Cost of $28,145,000)................ $28,145,000 28,145,000
--------------
TOTAL INVESTMENTS (100.9%)
(Cost of $844,965,814) (d)........... 1,048,557,185
--------------
OTHER ASSETS & LIABILITIES, NET (-0.9%)...... (9,383,332)
--------------
NET ASSETS (100.0%).......................... $1,039,173,853
==============
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 August 31, 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 federal income tax purposes is $848,817,817.
ACRONYM NAME
------- ----
ADR American Depositary Receipt
COLUMBIA SMALL CAP GROWTH FUND
AUGUST 31, 2003
SHARES VALUE
- -----------------------------------------------------------------------------
COMMON STOCKS (93.9%)
CONSUMER DISCRETIONARY (18.5%)
AUTO COMPONENTS (2.4%)
Autoliv, Inc............................ 197,200 $ 5,957,412
Gentex Corp. (a)........................ 171,550 6,434,841
Wabtec Corp............................. 171,400 2,682,410
-------------
15,074,663
-------------
HOTELS, RESTAURANTS & LEISURE (4.3%)
Ameristar Casinos, Inc. (a)............. 182,500 4,283,275
Fairmont Hotels & Resorts, Inc.......... 65,800 1,746,990
Leapfrog Enterprises, Inc. (a).......... 145,200 5,445,000
Outback Steakhouse, Inc................. 102,572 3,964,408
P.F. Chang's China Bistro, Inc. (a)..... 92,900 4,319,850
Panera Bread Co., Class A (a)........... 106,800 4,715,220
Ruby Tuesday, Inc....................... 122,000 2,777,940
-------------
27,252,683
-------------
HOUSEHOLD DURABLES (1.6%)
Harman International Industries,
Inc.................................. 102,100 10,174,265
-------------
MEDIA (4.1%)
Entercom Communications
Corp. (a)............................ 176,400 8,878,212
Entravision Communications
Corp., Class A (a)................... 356,000 3,524,400
Lamar Advertising Co. (a)............... 128,812 4,303,609
Radio One, Inc., Class D (a)............ 316,802 5,211,393
XM Satellite Radio Holdings, Inc.,
Class A (a).......................... 318,300 4,360,710
-------------
26,278,324
-------------
SPECIALTY RETAIL (5.9%)
Advance Auto Parts, Inc. (a)............ 64,600 4,822,390
Electronics Boutique Holdings
Corp. (a)............................ 97,700 3,246,571
GameStop Corp. (a)...................... 261,200 4,343,756
Hollywood Entertainment
Corp. (a)............................ 201,100 3,493,107
Linens `n Things, Inc. (a).............. 117,700 3,401,530
Michaels Stores, Inc. (a)............... 126,975 5,771,014
O'Reilly Automotive, Inc. (a)........... 94,792 3,629,586
PETsMART, Inc........................... 278,000 6,649,760
Pier 1 Imports, Inc..................... 112,800 2,320,296
-------------
37,678,010
-------------
TEXTILES, APPAREL & LUXURY GOODS (0.2%)
Columbia Sportswear Co. (a)............. 30,350 1,547,850
-------------
See Accompanying Notes to Financial Statements
88
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
SHARES VALUE
- -----------------------------------------------------------------------------
ENERGY (8.9%)
ENERGY EQUIPMENT & SERVICES (5.8%)
Cal Dive International, Inc. (a)........ 144,700 $ 3,060,405
Grey Wolf, Inc. (a)..................... 509,800 1,932,142
Key Energy Services, Inc. (a)........... 465,300 4,820,508
Maverick Tube Corp. (a)................. 134,600 2,286,854
National-Oilwell, Inc. (a).............. 243,300 4,763,814
Oceaneering International, Inc. (a)..... 101,900 2,504,702
Patterson-UTI Energy, Inc. (a).......... 110,500 3,297,320
Precision Drilling Corp. (a)............ 162,200 6,473,402
TETRA Technologies, Inc. (a)............ 109,800 2,470,500
Varco International, Inc. (a)........... 303,100 5,228,475
-------------
36,838,122
-------------
OIL & GAS (3.1%)
Chesapeake Energy Corp.................. 393,700 4,267,708
Cross Timbers Royalty Trust............. 2,480 55,414
Patina Oil & Gas Corp................... 106,506 3,946,047
Premcor, Inc. (a)....................... 200,350 4,908,575
XTO Energy, Inc......................... 335,200 7,035,848
-------------
20,213,592
-------------
FINANCIALS (2.4%)
DIVERSIFIED FINANCIALS (0.3%)
CapitalSource, Inc. (a)................. 32,000 563,200
iPayment, Inc. (a)...................... 42,200 1,066,394
-------------
1,629,594
-------------
INSURANCE (2.1%)
IPC Holdings Ltd. (a)................... 97,010 3,401,171
ProAssurance Corp. (a).................. 154,900 3,987,126
Scottish Annuity & Life Holdings
Ltd.................................. 259,000 5,951,820
-------------
13,340,117
-------------
HEALTH CARE (19.2%)
BIOTECHNOLOGY (3.1%)
Connetics Corp. (a)..................... 389,300 7,295,482
ICOS Corp. (a).......................... 187,250 7,291,515
Martek Biosciences Corp. (a)............ 86,100 4,441,899
Vicuron Pharmaceuticals, Inc. (a)....... 66,500 993,510
-------------
20,022,406
-------------
HEALTH CARE EQUIPMENT & SUPPLIES (2.6%)
ArthroCare Corp. (a).................... 251,200 4,230,208
Kyphon, Inc. (a)........................ 203,400 4,810,410
Orthofix International NV (a)........... 13,792 466,997
Thoratec Corp. (a)...................... 104,800 1,573,048
Wilson Greatbatch Technologies,
Inc. (a)............................. 141,110 5,583,723
-------------
16,664,386
-------------
SHARES VALUE
- -----------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES (12.1%)
Caremark Rx, Inc. (a)................... 336,222 $ 8,449,259
Cerner Corp. (a)........................ 185,700 6,557,067
Cobalt Corp. (a)........................ 145,400 2,877,466
Community Health Systems, Inc. (a)...... 140,400 3,227,796
Coventry Health Care, Inc. (a).......... 142,100 6,670,174
DaVita, Inc. (a)........................ 324,031 9,850,542
First Health Group Corp. (a)............ 363,356 9,527,194
Henry Schein, Inc. (a).................. 155,251 8,976,613
ICON PLC, ADR (a)....................... 168,550 6,194,212
IMPAC Medical Systems, Inc. (a)......... 136,200 2,635,470
Mid Atlantic Medical Services,
Inc. (a)............................. 182,400 8,948,544
PacifiCare Health Systems,
Inc. (a)............................. 61,200 3,047,760
-------------
76,962,097
-------------
PHARMACEUTICALS (1.4%)
ANDRX Corp. (a)......................... 258,200 4,647,600
AtheroGenics, Inc. (a).................. 291,787 3,971,221
-------------
8,618,821
-------------
INDUSTRIALS (10.1%)
AIRLINES (0.2%)
SkyWest, Inc............................ 91,000 1,590,680
-------------
COMMERCIAL SERVICES & SUPPLIES (7.5%)
BISYS Group, Inc. (a)................... 278,000 5,101,300
Corinthian Colleges, Inc. (a)........... 118,000 6,790,900
Corporate Executive Board Co. (a)....... 147,960 6,532,434
Education Management Corp. (a).......... 211,671 12,945,798
Global Payments, Inc.................... 118,136 4,459,634
Resources Connection, Inc. (a).......... 223,900 6,190,835
Tetra Tech, Inc. (a).................... 37,100 709,723
Waste Connections, Inc. (a)............. 151,800 5,347,914
-------------
48,078,538
-------------
CONSTRUCTION & ENGINEERING (1.1%)
Chicago Bridge & Iron Co.,
NY Registered Shares................. 152,300 4,069,456
URS Corp. (a)........................... 122,390 2,794,164
-------------
6,863,620
-------------
ELECTRICAL EQUIPMENT (0.4%)
Power-One, Inc. (a)..................... 192,030 2,267,874
-------------
MACHINERY (0.9%)
Albany International Corp.,
Class A.............................. 179,000 5,470,240
-------------
See Accompanying Notes to Financial Statements
89
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA SMALL CAP GROWTH FUND (CONT.)
AUGUST 31, 2003
SHARES VALUE
- -----------------------------------------------------------------------------
INFORMATION TECHNOLOGY (33.5%)
COMMUNICATIONS EQUIPMENT (5.4%)
Advanced Fibre Communications,
Inc. (a)............................. 218,700 $ 5,089,149
Aspect Communications Corp. (a)......... 244,400 2,011,412
AudioCodes Ltd. (a)..................... 154,300 932,126
Corvis Corp. (a)........................ 1,004,500 1,376,165
F5 Networks, Inc. (a)................... 209,500 4,108,295
Foundry Networks, Inc. (a).............. 254,410 4,948,274
NetScreen Technologies, Inc. (a)........ 359,800 8,610,014
Polycom, Inc. (a)....................... 274,500 4,710,420
REMEC, Inc. (a)......................... 123,400 1,118,004
Sonus Networks, Inc. (a)................ 200,000 1,420,000
-------------
34,323,859
-------------
COMPUTERS & PERIPHERALS (1.7%)
Advanced Digital Information
Corp. (a)............................ 293,500 3,962,250
Electronics for Imaging, Inc. (a)....... 334,820 7,171,844
-------------
11,134,094
-------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (4.6%)
Amphenol Corp., Class A (a)............. 330,855 18,041,523
Artesyn Technologies, Inc. (a).......... 318,700 2,565,535
Benchmark Electronics, Inc. (a)......... 191,600 8,503,208
-------------
29,110,266
-------------
INFORMATION TECHNOLOGY CONSULTING & SERVICES (2.1%)
CACI International, Inc.,
Class A (a).......................... 119,800 5,344,278
Cognizant Technology Solutions
Corp. (a)............................ 238,100 8,293,023
-------------
13,637,301
-------------
INTERNET SOFTWARE & SERVICES (1.3%)
Altiris, Inc. (a)....................... 45,200 1,010,672
CNET Networks, Inc. (a)................. 189,800 1,598,116
ebookers PLC, ADR (a)................... 111,400 2,138,880
NetGear, Inc. (a)....................... 34,300 675,367
webMethods, Inc. (a).................... 345,700 3,118,214
-------------
8,541,249
-------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (9.7%)
Axcelis Technologies, Inc. (a).......... 383,700 3,338,190
Cabot Microelectronics Corp. (a)........ 74,000 4,824,060
ChipPAC, Inc., Class A (a).............. 520,500 3,273,945
Conexant Systems, Inc. (a).............. 607,600 3,329,648
Credence Systems Corp. (a).............. 735,400 8,449,746
DuPont Photomasks, Inc. (a)............. 77,000 1,971,970
FEI Co. (a)............................. 66,200 1,819,176
SHARES VALUE
- -----------------------------------------------------------------------------
Integrated Device Technology,
Inc. (a)............................. 347,400 $ 4,846,230
Lattice Semiconductor Corp. (a)......... 266,800 2,347,840
Microsemi Corp. (a)..................... 417,500 8,253,975
Photronics, Inc. (a).................... 264,186 6,417,078
PMC-Sierra, Inc. (a).................... 146,700 2,091,942
Power Integrations, Inc. (a)............ 81,000 2,606,580
Ultratech, Inc. (a)..................... 286,700 8,408,911
-------------
61,979,291
-------------
SOFTWARE (8.7%)
Activision, Inc. (a).................... 352,500 4,550,775
Amdocs Ltd. (a)......................... 167,700 3,753,126
Autodesk, Inc........................... 223,400 3,998,860
Citrix Systems, Inc. (a)................ 187,600 3,862,684
Documentum, Inc. (a).................... 144,531 2,965,776
Fair Isaac Corp......................... 165,000 9,669,000
JDA Software Group, Inc. (a)............ 215,300 3,595,510
Macromedia, Inc. (a).................... 420,100 10,015,184
Mercury Interactive Corp. (a)........... 122,800 5,389,692
MicroStrategy, Inc., Class A (a)........ 72,000 2,913,120
National Instruments Corp. (a).......... 71,860 2,846,375
Ulticom, Inc. (a)....................... 103,300 1,074,320
Verity, Inc. (a)........................ 45,500 542,360
-------------
55,176,782
-------------
MATERIALS (0.6%)
CHEMICALS (0.6%)
OM Group, Inc........................... 271,500 3,659,820
-------------
TELECOMMUNICATION SERVICES (0.7%)
DIVERSIFIED TELECOMMUNICATION SERVICES (0.1%)
Covad Communications Group,
Inc. (a)............................. 225,400 856,520
-------------
WIRELESS TELECOMMUNICATION SERVICES (0.6%)
Dobson Communications Corp.,
Class A (a).......................... 421,000 3,873,200
-------------
Total Common Stocks
(Cost of $452,564,627)............... 598,858,264
-------------
INVESTMENT MANAGEMENT COMPANY (0.5%)
Japan Smaller Capitalization
Fund, Inc.
(Cost of $2,902,739)................. 356,400 2,958,120
-------------
See Accompanying Notes to Financial Statements
90
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
PAR VALUE
- -----------------------------------------------------------------------------
SHORT-TERM OBLIGATION (6.2%)
Repurchase agreement with State
Street Bank & Trust Co., dated
08/29/03, due 09/02/03 at 0.860%,
collateralized by a U.S. Treasury
Note maturing 08/15/06,
market value of $40,518,450
(repurchase proceeds $39,726,796)
(Cost of $39,723,000)................ $39,723,000 $ 39,723,000
-------------
TOTAL INVESTMENTS (100.6%)
(Cost of $495,190,366) (b)........... 641,539,384
-------------
OTHER ASSETS & LIABILITIES, NET (-0.6%)...... (3,923,811)
-------------
NET ASSETS (100.0%).......................... $ 637,615,573
=============
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Non-income producing.
(b) Cost for federal income tax purposes is $498,727,495.
ACRONYM NAME
------- ----
ADR American Depositary Receipt
COLUMBIA REAL ESTATE EQUITY FUND
AUGUST 31, 2003
SHARES VALUE
- -----------------------------------------------------------------------------
COMMON STOCKS (94.2%)
CONSUMER DISCRETIONARY (5.4%)
HOTELS, RESTAURANTS & LEISURE (5.4%)
Hilton Hotels Corp...................... 1,211,700 $ 18,514,776
Marriott International, Inc.,
Class A.............................. 307,700 12,563,391
Starwood Hotels & Resorts
Worldwide, Inc....................... 531,800 17,990,794
-------------
49,068,961
-------------
FINANCIALS (77.8%)
REAL ESTATE (77.8%)
Alexandria Real Estate Equities,
Inc.................................. 663,100 30,999,925
American Financial Realty Trust......... 563,600 8,115,840
Apartment Investment &
Management Co., Class A.............. 480,600 18,527,130
Archstone-Smith Trust................... 644,771 16,860,762
AvalonBay Communities, Inc.............. 476,400 22,104,960
Boston Properties, Inc.................. 370,500 15,912,975
Brookfield Properties Corp.............. 398,800 9,300,016
CarrAmerica Realty Corp................. 275,500 7,755,325
Catellus Development Corp. (a).......... 386,500 9,063,425
Centerpoint Properties Trust............ 257,300 16,312,820
SHARES VALUE
- -----------------------------------------------------------------------------
Chelsea Property Group, Inc............. 372,400 $ 17,111,780
Cousins Properties, Inc. ............... 1,615,050 46,836,450
Duke Realty Corp........................ 785,200 21,726,484
Equity Office Properties Trust.......... 934,537 25,998,819
Equity Residential...................... 608,506 17,695,354
First Industrial Realty Trust, Inc. .... 268,300 8,169,735
General Growth Properties, Inc.......... 614,960 42,647,476
iStar Financial, Inc. .................. 1,134,350 41,585,271
Kimco Realty Corp....................... 746,600 31,118,288
Liberty Property Trust.................. 390,300 13,594,149
Manufactured Home Communities,
Inc. ................................ 179,900 6,602,330
Newcastle Investment Corp............... 623,700 13,553,001
Pan Pacific Retail Properties, Inc...... 287,800 12,116,380
Parkway Properties, Inc................. 93,100 4,175,535
Prentiss Properties Trust............... 204,000 6,130,200
ProLogis Trust.......................... 1,372,406 38,688,125
Public Storage, Inc..................... 617,032 22,762,310
Reckson Associates Realty Corp.......... 234,000 5,302,440
Regency Centers Corp.................... 832,500 29,370,600
Rouse Co................................ 778,400 31,034,808
Simon Property Group, Inc. ............. 1,033,256 44,130,364
SL Green Realty Corp.................... 240,200 8,447,834
St. Joe Co.............................. 528,900 17,987,889
Taubman Centers, Inc.................... 412,700 8,163,206
United Dominion Realty Trust, Inc. ..... 508,000 9,306,560
Vornado Realty Trust.................... 531,100 25,041,365
-------------
704,249,931
-------------
MATERIALS (11.0%)
CONTAINERS & PACKAGING (2.3%)
Smurfit-Stone Container Corp. (a)....... 863,500 13,626,030
Temple-Inland, Inc...................... 139,200 6,929,376
-------------
20,555,406
-------------
PAPER & FOREST PRODUCTS (8.7%)
Bowater, Inc............................ 836,100 36,211,491
International Paper Co.................. 705,500 28,608,025
MeadWestvaco Corp....................... 537,700 13,630,695
-------------
78,450,211
-------------
Total Common Stocks
(Cost of $660,975,299)............... 852,324,509
-------------
See Accompanying Notes to Financial Statements
91
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA REAL ESTATE EQUITY FUND (CONT.)
AUGUST 31, 2003
PAR VALUE
- -----------------------------------------------------------------------------
SHORT-TERM OBLIGATION (5.0%)
Repurchase agreement with State
Street Bank & Trust Co., dated
08/29/03, due 09/02/03 at 0.860%,
collateralized by U.S. Treasury
Notes with various maturities to
07/15/06, market value of $46,542,323
(repurchase proceeds $45,631,360)
(Cost of $45,627,000)................ $45,627,000 $ 45,627,000
-------------
TOTAL INVESTMENTS (99.2%)
(Cost of $706,602,299) (b)........... 897,951,509
-------------
OTHER ASSETS & LIABILITIES, NET (0.8%)....... 7,402,011
-------------
NET ASSETS (100.0%).......................... $ 905,353,520
=============
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Non-income producing.
(b) Cost for federal income tax purposes is $707,850,016.
COLUMBIA TECHNOLOGY FUND
AUGUST 31, 2003
SHARES VALUE
- -----------------------------------------------------------------------------
COMMON STOCKS (86.2%)
CONSUMER DISCRETIONARY (7.4%)
HOUSEHOLD DURABLES (1.7%)
Garmin Ltd.............................. 5,000 $ 199,850
Matsushita Electric Industrial Co.,
Ltd., ADR............................ 12,300 157,563
-------------
357,413
-------------
INTERNET & CATALOG RETAIL (2.6%)
Drugstore.com, Inc. (a)................. 18,400 117,392
eBay, Inc. (a).......................... 4,200 232,596
InterActiveCorp (a)..................... 5,600 207,256
-------------
557,244
-------------
LEISURE EQUIPMENT & PRODUCTS (0.5%)
Marvel Enterprises, Inc. (a)............ 4,800 105,120
-------------
MEDIA (2.6%)
4 Kids Entertainment, Inc. (a).......... 6,600 144,606
Pixar, Inc. (a)......................... 250 18,208
TiVo, Inc. (a).......................... 13,000 141,310
XM Satellite Radio Holdings, Inc.,
Class A (a).......................... 18,400 252,080
-------------
556,204
-------------
SHARES VALUE
- -----------------------------------------------------------------------------
HEALTH CARE (3.6%)
BIOTECHNOLOGY (2.2%)
Exact Sciences Corp. (a)................ 7,000 $ 117,880
ICOS Corp. (a).......................... 2,000 77,880
Neurocrine Biosciences, Inc. (a)........ 1,500 80,265
Onyx Pharmaceuticals, Inc. (a).......... 8,000 142,800
Vicuron Pharmaceuticals, Inc. (a)....... 4,000 59,760
-------------
478,585
-------------
HEALTH CARE EQUIPMENT & SUPPLIES (0.6%)
Illumina, Inc. (a)...................... 2,000 7,363
Varian Medical Systems, Inc. (a)........ 2,000 111,700
-------------
119,063
-------------
PHARMACEUTICALS (0.8%)
Biovail Corp. (a)....................... 4,000 167,780
-------------
INDUSTRIALS (0.9%)
COMMERCIAL SERVICES & SUPPLIES (0.9%)
Global Payments, Inc.................... 5,000 188,750
-------------
INFORMATION TECHNOLOGY (57.9%)
COMMUNICATIONS EQUIPMENT (10.3%)
ADTRAN, Inc............................. 3,500 191,800
Advanced Fibre Communications,
Inc. (a)............................. 10,300 239,681
Alvarion Ltd. (a)....................... 40,000 224,800
Carrier Access Corp. (a)................ 37,500 176,250
Ciena Corp. (a)......................... 25,000 162,500
Comverse Technology, Inc. (a)........... 17,500 288,575
Foundry Networks, Inc. (a).............. 10,000 194,500
Juniper Networks, Inc. (a).............. 10,000 172,200
Network Engines, Inc. (a)............... 24,000 146,400
Network Equipment Technologies,
Inc. (a)............................. 10,500 97,335
Oplink Communications, Inc. (a)......... 32,000 49,600
PC-Tel, Inc. (a)........................ 3,000 34,080
Sonus Networks, Inc. (a)................ 30,000 213,000
-------------
2,190,721
-------------
COMPUTERS & PERIPHERALS (3.1%)
Dell, Inc. (a).......................... 2,400 78,312
Innovex, Inc. (a)....................... 10,000 136,470
Overland Storage, Inc. (a).............. 5,200 84,240
Presstek, Inc. (a)...................... 18,500 161,801
Sandisk Corp. (a)....................... 1,800 108,828
Vixel Corp. (a)......................... 12,000 99,600
-------------
669,251
-------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (0.8%)
Spatialight, Inc. (a)................... 14,000 58,939
Symbol Technologies, Inc. .............. 7,500 101,550
-------------
160,489
-------------
See Accompanying Notes to Financial Statements
92
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
SHARES VALUE
- -----------------------------------------------------------------------------
INFORMATION TECHNOLOGY CONSULTING & SERVICES (2.1%)
Affiliated Computer Services, Inc.,
Class A (a).......................... 1,500 $ 74,415
Computer Sciences Corp. (a)............. 2,000 85,140
Infosys Technologies, Ltd., ADR......... 2,500 141,625
Sapient Corp. (a)....................... 50,000 157,500
-------------
458,680
-------------
INTERNET SOFTWARE & SERVICES (9.5%)
Art Technology Group, Inc. (a).......... 90,000 204,120
ebookers PLC, ADR (a)................... 6,000 115,200
Lastminute.com PLC, ADR (a)............. 2,500 53,875
NetEase.com, Inc., ADR (a).............. 725 36,910
NetGear, Inc. (a)....................... 2,000 39,380
Sify Ltd., ADR (a)...................... 8,800 49,720
SINA Corp., Registered Shares (a)....... 1,900 59,052
Sohu.com, Inc. (a)...................... 7,000 210,140
Switchboard, Inc. (a)................... 29,000 326,540
United Online, Inc. (a)................. 13,360 509,150
Yahoo!, Inc. (a)........................ 12,900 430,860
-------------
2,034,947
-------------
OFFICE ELECTRONICS (1.7%)
Canon, Inc., ADR........................ 4,800 232,608
Zebra Technologies Corp.,
Class A (a).......................... 2,250 120,645
-------------
353,253
-------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (18.4%)
Advanced Micro Devices, Inc. (a)........ 19,000 214,510
ASML Holding NV, NY Registered
Shares (a)........................... 8,800 139,920
Atmel Corp. (a)......................... 14,000 64,260
Cohu, Inc. ............................. 2,500 55,303
Credence Systems Corp. (a).............. 5,000 56,108
Cymer, Inc. (a)......................... 4,500 205,965
Infineon Technologies AG, ADR (a)....... 5,000 73,500
Intel Corp.............................. 12,000 343,440
Intersil Corp., Class A (a)............. 1,525 44,423
Marvell Technology Group
Ltd. (a)............................. 4,600 193,982
MIPS Technologies, Inc.,
Class A (a).......................... 15,000 62,850
MIPS Technologies, Inc.,
Class B (a).......................... 84,000 336,000
PDF Solutions, Inc. (a)................. 8,000 96,720
PMC-Sierra, Inc. (a).................... 25,000 356,500
Samsung Electronics Co., Ltd.,
GDR (b).............................. 1,100 204,050
Silicon Laboratories, Inc. (a).......... 2,200 97,702
Silicon Storage Technology,
Inc. (a)............................. 36,000 303,480
SHARES VALUE
- -----------------------------------------------------------------------------
Siliconware Precision Industries
Co., ADR (a)......................... 50,010 $ 215,043
Ultratech Stepper, Inc. (a).................. 2,000 58,660
United Microelectronics Corp.,
ADR (a).............................. 42,000 208,740
ZiLOG, Inc. (a)......................... 172,000 581,360
-------------
3,912,516
-------------
SOFTWARE (12.0%)
Activision, Inc. (a).................... 9,000 116,190
Agile Software Corp. (a)................ 15,000 149,850
Amdocs, Ltd. (a)........................ 9,000 201,420
Autodesk, Inc........................... 5,000 89,500
BEA Systems, Inc. (a)................... 8,100 109,755
Citrix Systems, Inc. (a)................ 8,000 164,720
Computer Associates
International, Inc................... 10,000 256,300
Concur Technologies, Inc. (a)........... 25,000 277,500
Informatica Corp. (a)................... 20,000 177,800
MicroStrategy, Inc., Class A (a)........ 1,750 70,805
Network Associates, Inc. (a)............ 10,000 139,200
Novell, Inc. (a)........................ 18,000 90,540
Oracle Corp. (a)........................ 18,000 230,040
Peregrine Sysems, Inc. (a).............. 3,000 57,600
Red Hat, Inc. (a)....................... 14,000 101,920
SAP AG, ADR............................. 5,500 164,670
Sybase, Inc. (a)........................ 5,500 93,005
Verity, Inc. (a)........................ 6,400 76,288.
-------------
2,567,103
-------------
TELECOMMUNICATION SERVICES (16.4%)
DIVERSIFIED TELECOMMUNICATION SERVICES (8.5%)
Compania Anonima Nacional
Telefonos de Venezuela,
ADR (a).............................. 8,000 105,840
Covad Communications Group,
Inc. (a)............................. 290,600 1,104,280
Telefonaktiebolaget LM Ericsson,
ADR (a).............................. 20,000 309,600
Telefonos de Mexico SA de CV,
ADR.................................. 6,000 181,860
Verizon Communications, Inc............. 3,000 105,960
-------------
1,807,540
-------------
WIRELESS TELECOMMUNICATION SERVICES (7.9%)
American Tower Corp.,
Class A (a).......................... 20,000 227,600
AT&T Wireless Services, Inc. (a)........ 11,500 99,130
Crown Castle International
Corp. (a)............................ 24,000 258,000
See Accompanying Notes to Financial Statements
93
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA TECHNOLOGY FUND (CONT.)
AUGUST 31, 2003
SHARES VALUE
- -----------------------------------------------------------------------------
Millicom International Cellular
SA (a)............................... 13,000 $ 519,350
Mobile Telesystems, ADR (a)............. 4,000 281,920
Vimpel-Communications, ADR (a).......... 5,500 296,505
-------------
1,682,505
-------------
Total Common Stocks
(Cost of $15,160,558)................ 18,367,164
-------------
SHORT-TERM OBLIGATION (19.7%) PAR
Repurchase agreement with State
Street Bank & Trust Co., dated
08/29/03, due 09/02/03 at 0.860%,
collateralized by a U.S. Treasury
Note maturing 11/15/03,
market value of $4,287,452
(repurchase proceeds $4,200,401)
(Cost of $4,200,000)................. $ 4,200,000 4,200,000
-------------
TOTAL INVESTMENTS (105.9%)
(Cost of $19,360,558) (c)............ 22,567,164
-------------
OTHER ASSETS & LIABILITIES, NET (-5.9%)...... (1,267,677)
-------------
NET ASSETS (100.0%).......................... $ 21,299,487
=============
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 August 31, 2003, the value
of this security amounted to $204,050, which represents 1.0% of net assets.
(c) Cost for federal income tax purposes is $19,469,481.
ACRONYM NAME
------- ----
ADR American Depositary Receipt
GDR Global Depositary Receipt
COLUMBIA STRATEGIC INVESTOR FUND
AUGUST 31, 2003
SHARES VALUE
- -----------------------------------------------------------------------------
COMMON STOCKS (80.4%)
CONSUMER DISCRETIONARY (12.6%)
AUTO COMPONENTS (1.6%)
Dana Corp............................... 50,000 $ 771,000
Modine Manufacturing Co................. 75,000 1,852,500
Nokian Renkaat Oyj (Finland)............ 35,800 1,983,580
-------------
4,607,080
-------------
SHARES VALUE
- -----------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE (1.4%)
Carnival Corp........................... 30,000 $ 1,037,700
Fairmont Hotels & Resorts, Inc.......... 50,000 1,327,500
McDonald's Corp......................... 75,000 1,681,500
-------------
4,046,700
-------------
HOUSEHOLD DURABLES (2.2%)
Cavco Industries, Inc. (a).............. 40,000 762,400
Ekornes ASA (Norway).................... 100,000 1,506,004
Makita Corp., ADR....................... 50,000 440,000
Matsushita Electric Industrial
Co., Ltd., ADR....................... 100,000 1,281,000
Newell Rubbermaid, Inc.................. 40,100 952,375
Stanley Works........................... 50,000 1,513,500
-------------
6,455,279
-------------
LEISURE EQUIPMENT & PRODUCTS (0.3%)
Hasbro, Inc............................. 50,000 925,000
-------------
MEDIA (2.8%)
AOL Time Warner, Inc. (a)............... 115,000 1,881,400
Belo Corp., Class A..................... 40,000 932,800
Entravision Communications
Corp., Class A (a)................... 100,000 990,000
Hughes Electronics Corp................. 100,000 1,494,000
Liberty Media Corp., Class A (a)........ 50,000 605,000
Martha Stewart Living
Omnimedia, Inc., Class A (a)......... 75,000 657,000
Media General, Inc., Class A............ 20,000 1,212,200
Metro-Goldwyn-Mayer, Inc. (a)........... 27,500 398,200
-------------
8,170,600
-------------
MULTI-LINE RETAIL (1.8%)
Dillard's, Inc., Class A................ 100,000 1,513,000
Dollar General Corp..................... 67,500 1,547,775
Stockmann Oyj, Class B (Finland)........ 70,000 1,221,268
Target Corp. ........................... 20,000 812,000
-------------
5,094,043
-------------
SPECIALTY RETAIL (2.5%)
CarMax, Inc. (a)........................ 50,000 1,927,500
Circuit City Stores, Inc................ 75,000 782,250
Friedman's, Inc., Class A............... 150,000 1,995,000
Home Depot, Inc......................... 20,000 643,200
Linens `n Things, Inc. (a).............. 27,500 794,750
Talbots, Inc............................ 32,500 1,191,775
-------------
7,334,475
-------------
CONSUMER STAPLES (4.3%)
BEVERAGES (1.2%)
Coca-Cola Co............................ 20,000 870,400
Coca-Cola Femsa SA de CV, ADR........... 55,000 1,190,750
Companhia de Bebidas
das Americas, ADR.................... 67,500 1,497,825
-------------
3,558,975
-------------
See Accompanying Notes to Financial Statements
94
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
SHARES VALUE
- -----------------------------------------------------------------------------
FOOD & DRUG RETAILING (1.0%)
Longs Drug Stores Corp.................. 47,500 $ 1,087,750
United Natural Foods, Inc. (a).......... 30,000 892,500
Walgreen Co............................. 30,000 977,100
-------------
2,957,350
-------------
FOOD PRODUCTS (1.5%)
Archer-Daniels-Midland Co............... 75,000 1,040,250
Del Monte Foods Co. (a)................. 50,000 449,000
Delta and Pine Land Co.................. 40,000 996,000
Tyson Foods, Inc., Class A.............. 100,000 1,120,000
Wimm-Bill-Dann Foods, ADR (a)........... 38,100 813,816
-------------
4,419,066
-------------
HOUSEHOLD PRODUCTS (0.4%)
Kimberly-Clark Corp..................... 25,000 1,277,750
-------------
TOBACCO (0.2%)
Altria Group, Inc....................... 10,000 412,200
-------------
ENERGY (7.7%)
ENERGY EQUIPMENT & SERVICES (4.2%)
Core Laboratories NV (a)................ 75,000 1,001,250
FMC Technologies, Inc. (a).............. 75,000 1,775,250
GlobalSantaFe Corp...................... 47,500 1,178,000
Grant Prideco, Inc. (a)................. 75,000 870,000
Halliburton Co.......................... 67,500 1,632,150
Maverick Tube Corp. (a)................. 50,000 849,500
Schlumberger Ltd........................ 40,000 1,980,400
Transocean, Inc. (a).................... 75,000 1,584,000
Universal Compression Holdings,
Inc. (a)............................. 50,000 1,151,000
Willbros Group, Inc. (a)................ 36,400 356,243
-------------
12,377,793
-------------
OIL & GAS (3.5%)
Anadarko Petroleum Corp................. 37,500 1,631,250
BP PLC, ADR............................. 42,500 1,773,100
Chesapeake Energy Corp.................. 50,000 542,000
China Petroleum and Chemical
Corp., ADR........................... 30,000 909,600
Cimarex Energy Co. (a).................. 50,002 1,087,544
ConocoPhillips.......................... 35,385 1,975,898
EOG Resources, Inc...................... 10,000 424,000
Stelmar Shipping Ltd. (a)............... 50,000 855,500
Unocal Corp............................. 30,000 918,600
-------------
10,117,492
-------------
SHARES VALUE
- -----------------------------------------------------------------------------
FINANCIALS (11.9%)
BANKS (5.6%)
Allied Irish Banks PLC, ADR............. 30,000 $ 842,400
Bank One Corp........................... 47,500 1,874,825
Banner Corp............................. 20,000 422,000
Columbia Banking Systems, Inc........... 75,000 1,362,000
Fifth Third Bancorp..................... 37,500 2,197,500
HSBC Holdings PLC, ADR.................. 25,000 1,608,000
Grupo Financiero BBVA Bancomer,
SA de CV, Class B (a) (Mexico)....... 750,000 608,324
MGIC Investment Corp.................... 37,500 2,113,875
Mitsubishi Tokyo Financial Group,
Inc., ADR............................ 100,000 587,000
Radian Group, Inc....................... 40,000 1,903,600
U.S. Bancorp............................ 75,000 1,792,500
Wachovia Corp........................... 22,500 948,375
-------------
16,260,399
-------------
DIVERSIFIED FINANCIALS (3.4%)
Bank of New York Co., Inc............... 40,000 1,176,800
Citigroup, Inc.......................... 57,500 2,492,625
Financial Federal Corp.................. 30,000 964,200
GATX Corp............................... 75,000 1,588,500
J.P. Morgan Chase & Co.................. 40,000 1,368,800
Mellon Financial Corp................... 30,000 940,500
Nikko Cordial Corp. (Japan)............. 100,000 480,782
Nomura Holdings, Inc., ADR.............. 65,000 952,250
-------------
9,964,457
-------------
INSURANCE (2.5%)
American International Group, Inc....... 30,000 1,787,100
Aon Corp................................ 40,000 888,000
Chubb Corp.............................. 10,000 679,400
John Hancock Financial Services,
Inc. ................................ 30,000 915,900
Lincoln National Corp................... 20,000 708,400
St. Paul Companies, Inc................. 20,000 695,200
Wesco Financial Corp.................... 5,000 1,580,050
-------------
7,254,050
-------------
REAL ESTATE (0.4%)
Crescent Real Estate Equities Co. ...... 20,000 290,200
Post Properties, Inc. .................. 30,000 846,000
-------------
1,136,200
-------------
HEALTH CARE (7.8%)
HEALTH CARE EQUIPMENT & SUPPLIES (1.1%)
Baxter International, Inc............... 40,000 1,124,000
Haemonetics Corp. (a)................... 57,500 1,219,575
Millipore Corp. (a)..................... 20,000 908,000
-------------
3,251,575
-------------
See Accompanying Notes to Financial Statements
95
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA STRATEGIC INVESTOR FUND (CONT.)
AUGUST 31, 2003
SHARES VALUE
- -----------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES (1.1%)
McKesson Corp........................... 40,000 $ 1,309,600
Quest Diagnostics, Inc. (a)............. 10,000 600,000
Service Corp. International (a)......... 50,000 200,000
Tenet Healthcare Corp. (a).............. 60,000 963,000
-------------
3,072,600
-------------
PHARMACEUTICALS (5.6%)
Abbott Laboratories..................... 50,000 2,015,000
Bristol-Myers Squibb Co................. 77,500 1,966,175
Elan Corp. PLC, ADR (a)................. 50,000 218,000
Gedeon Richter Ltd. (Hungary)........... 20,000 1,706,812
ICN Pharmaceuticals, Inc................ 62,500 1,093,750
Merck & Co., Inc........................ 12,500 629,000
Mylan Laboratories, Inc................. 50,000 1,820,000
Novartis AG, ADR........................ 40,000 1,478,800
Pfizer, Inc............................. 40,000 1,196,800
Schering AG, ADR........................ 15,000 609,515
Schering-Plough Corp.................... 75,000 1,139,250
Shire Pharmaceuticals Group
PLC, ADR (a)......................... 50,000 1,162,500
Wyeth................................... 30,000 1,285,500
-------------
16,321,102
-------------
INDUSTRIALS (11.8%)
AEROSPACE & DEFENSE (0.7%)
Northrop Grumman Corp. ................. 10,000 954,800
Raytheon Co. ........................... 30,000 961,800
-------------
1,916,600
-------------
COMMERCIAL SERVICES & SUPPLIES (2.4%)
Cendant Corp............................ 125,000 2,247,500
Copart, Inc. (a)........................ 40,000 401,600
G&K Services, Inc., Class A............. 30,000 991,500
Ionics, Inc. (a)........................ 47,500 1,045,000
R. R. Donnelley & Sons Co. ............. 40,000 1,005,600
Waste Management, Inc. ................. 55,000 1,463,550
-------------
7,154,750
-------------
CONSTRUCTION & ENGINEERING (0.3%)
URS Corp. (a)........................... 40,000 913,200
-------------
ELECTRICAL EQUIPMENT (1.6%)
Cooper Industries Ltd., Class A......... 25,000 1,272,250
Emerson Electric Co. ................... 27,500 1,533,400
Rockwell Automation, Inc. .............. 35,000 952,700
Thomas & Betts Corp. (a)................ 50,000 854,000
-------------
4,612,350
-------------
SHARES VALUE
- -----------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES (2.2%)
3M Co................................... 32,500 $ 4,630,275
Textron, Inc............................ 42,500 1,912,500
-------------
6,542,775
-------------
MACHINERY (3.8%)
Caterpillar, Inc........................ 47,500 3,411,925
Eaton Corp.............................. 30,000 2,809,200
Flowserve Corp. (a)..................... 40,000 842,000
JLG Industries, Inc..................... 72,500 761,250
Navistar International Corp............. 30,000 1,341,900
Timken Co............................... 75,000 1,252,500
Trinity Industries, Inc................. 20,000 526,400
-------------
10,945,175
-------------
MARINE (0.2%)
Alexander & Baldwin, Inc................ 20,000 585,600
-------------
ROAD & RAIL (0.3%)
Kansas City Southern (a)................ 65,000 789,750
-------------
TRADING COMPANIES & DISTRIBUTORS (0.3%)
Genuine Parts Co........................ 30,000 960,600
-------------
INFORMATION TECHNOLOGY (10.1%)
COMMUNICATIONS EQUIPMENT (2.4%)
Andrew Corp. (a)........................ 40,000 495,200
Comverse Technology, Inc. (a)........... 100,000 1,649,000
Corning, Inc. (a)....................... 50,000 412,500
Motorola, Inc. ......................... 67,500 724,275
Nortel Networks Corp. (a)............... 100,000 325,000
Polycom, Inc. (a)....................... 122,500 2,102,100
Telefonaktiebolaget LM Ericsson,
ADR (a).............................. 40,000 619,200
Tellabs, Inc. (a)....................... 125,000 816,250
-------------
7,143,525
-------------
COMPUTERS & PERIPHERALS (0.5%)
SanDisk Corp. (a)....................... 20,000 1,209,200
Sun Microsystems, Inc. (a).............. 100,000 386,000
-------------
1,595,200
-------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (1.9%)
Celestica, Inc. (a)..................... 75,000 1,316,250
Flextronics International Ltd. (a)...... 75,000 1,011,750
Methode Electronics, Inc., Class A...... 100,000 1,200,000
Solectron Corp. (a)..................... 125,000 741,250
Waters Corp. (a)........................ 42,500 1,296,250
-------------
5,565,500
-------------
INTERNET SOFTWARE & SERVICES (0.2%)
Internet Security Systems, Inc. (a)..... 50,000 624,500
-------------
IT SERVICES (0.6%)
Concord EFS, Inc. (a)................... 50,000 692,500
Convergys Corp. (a)..................... 50,000 900,000
-------------
1,592,500
-------------
See Accompanying Notes to Financial Statements
96
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
SHARES VALUE
- -----------------------------------------------------------------------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (3.5%)
Atmel Corp. (a)......................... 125,000 $ 573,750
Axcelis Technologies, Inc. (a).......... 100,000 870,000
FEI Co. (a)............................. 75,000 2,061,000
Micron Technology, Inc.................. 57,500 825,700
Mykrolis Corp. (a)...................... 50,000 630,000
Samsung Electronics Co., Ltd.,
GDR (b).............................. 7,500 1,391,250
Teradyne, Inc. (a)...................... 87,500 1,560,125
Texas Instruments, Inc.................. 100,000 2,385,000
-------------
10,296,825
-------------
SOFTWARE (1.0%)
Activision, Inc. (a).................... 75,000 968,250
Autodesk, Inc........................... 50,000 895,000
SAP AG, ADR............................. 30,000 898,200
-------------
2,761,450
-------------
MATERIALS (8.4%)
CHEMICALS (3.5%)
A. Schulman, Inc........................ 50,000 801,000
Calgon Carbon Corp...................... 40,000 251,200
Dow Chemical Co. ....................... 50,000 1,726,500
Eastman Chemical Co..................... 50,000 1,790,500
H.B. Fuller Co. ........................ 50,000 1,324,500
Olin Corp............................... 50,000 910,500
Potash Corp. of Saskatchewan,
Inc. ................................ 32,500 2,304,250
Rohm and Haas Co........................ 30,000 1,089,900
-------------
10,198,350
-------------
CONSTRUCTION MATERIALS (0.3%)
Martin Marietta Materials, Inc.......... 20,000 764,600
-------------
CONTAINERS & PACKAGING (1.2%)
Sealed Air Corp. (a).................... 30,000 1,459,800
Smurfit-Stone Container Corp. (a)....... 65,000 1,025,700
Temple-Inland, Inc...................... 22,500 1,120,050
-------------
3,605,550
-------------
METALS & MINING (1.1%)
Allegheny Technologies, Inc. ........... 100,000 745,000
Barrick Gold Corp. ..................... 75,000 1,515,750
CONSOL Energy, Inc...................... 50,000 1,010,000
-------------
3,270,750
-------------
PAPER & FOREST PRODUCTS (2.3%)
Abitibi-Consolidated, Inc............... 50,000 378,500
Bowater, Inc............................ 40,100 1,736,731
Georgia-Pacific Corp.................... 75,000 1,737,750
Potlatch Corp........................... 30,000 884,700
Votorantim Celulose e Papel
SA, ADR.............................. 75,000 1,972,500
-------------
6,710,181
-------------
SHARES VALUE
- -----------------------------------------------------------------------------
TELECOMMUNICATION SERVICES (3.4%)
DIVERSIFIED TELECOMMUNICATION SERVICES (2.1%)
AT&T Corp. (a).......................... 50,000 $ 1,115,000
Compania Anonima Nacional
Telefonos de Venezuela, ADR.......... 45,000 595,350
Covad Communications Group,
Inc. (a)............................. 125,000 475,000
PT Telekomunikasi
Indonesia, ADR....................... 75,000 840,000
SBC Communications, Inc................. 87,500 1,967,875
Telefonos de Mexico SA de
CV, ADR.............................. 15,000 454,650
Verizon Communications, Inc............. 20,000 706,400
-------------
6,154,275
-------------
WIRELESS TELECOMMUNICATION SERVICES (1.3%)
AT&T Wireless Services, Inc. (a)........ 75,000 646,500
Millicom International Cellular
SA (a)............................... 41,000 1,637,950
Vimpel-Communications, ADR (a).......... 30,000 1,617,300
-------------
3,901,750
-------------
UTILITIES (2.4%)
ELECTRIC UTILITIES (0.7%)
FirstEnergy Corp........................ 50,000 1,463,000
TECO Energy, Inc........................ 42,500 502,775
-------------
1,965,775
-------------
GAS UTILITIES (0.6%)
NiSource, Inc........................... 40,000 773,600
NUI Corp................................ 57,500 922,875
-------------
1,696,475
-------------
MULTI-UTILITIES & UNREGULATED POWER (0.9%)
Aquila, Inc............................. 100,000 242,000
Duke Energy Corp........................ 42,500 725,900
El Paso Corp............................ 20,000 146,800
ONEOK, Inc.............................. 37,500 787,125
Westar Energy, Inc...................... 40,000 702,800
-------------
2,604,625
-------------
WATER UTILITIES (0.2%)
California Water Service Group.......... 30,000 756,000
-------------
Total Common Stocks
(Cost of $193,639,575)............... 234,642,817
-------------
INVESTMENT MANAGEMENT COMPANY (0.5%)
Japan Smaller Capitalization
Fund, Inc.
(Cost of $984,539)................... 150,000 1,356,000
-------------
See Accompanying Notes to Financial Statements
97
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA STRATEGIC INVESTOR FUND (CONT.)
AUGUST 31, 2003
PAR VALUE
- -----------------------------------------------------------------------------
SHORT-TERM OBLIGATION (19.3%)
Repurchase agreement with State
Street Bank & Trust Co., dated
08/29/03, due 09/02/03 at 0.860%,
collateralized by a U.S. Treasury
Note and a U.S. Treasury Bond
with maturities to 02/15/10,
market value of $57,415,069
(repurchase proceeds $56,292,379)
(Cost of $56,287,000)................ $56,287,000 $ 56,287,000
-------------
TOTAL INVESTMENTS (100.2%)
(Cost of $250,911,114) (c)........... 292,285,817
-------------
OTHER ASSETS & LIABILITIES, NET (-0.2%)...... (617,796)
-------------
NET ASSETS (100.0%).......................... $ 291,668,021
=============
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 August 31, 2003, the value
of this security amounted to $1,391,250, which represents 0.5% of net
assets.
(c) Cost for federal income tax purposes is $252,859,374.
ACRONYM NAME
------- ----
ADR American Depositary Receipt
GDR Global Depositary Receipt
COLUMBIA BALANCED FUND
AUGUST 31, 2003
SHARES VALUE
- -----------------------------------------------------------------------------
COMMON STOCKS (63.7%)
CONSUMER DISCRETIONARY (11.9%)
HOTELS, RESTAURANTS & LEISURE (2.9%)
Hilton Hotels Corp...................... 156,675 $ 2,393,994
McDonald's Corp......................... 269,350 6,038,827
Royal Caribbean Cruises Ltd............. 143,500 4,470,025
Yum! Brands, Inc. (a)................... 203,550 6,035,257
-------------
18,938,103
-------------
SHARES VALUE
- -----------------------------------------------------------------------------
INTERNET & CATALOG RETAIL (0.5%)
eBay, Inc. (a).......................... 60,200 $ 3,333,876
MEDIA (2.5%)
AOL Time Warner, Inc. (a)............... 257,712 4,216,168
Clear Channel Communications,
Inc. (a)............................. 46,825 2,112,744
Comcast Corp., Class A (a).............. 69,556 2,069,291
Interpublic Group of Companies,
Inc. ................................ 88,600 1,342,290
Liberty Media Corp., Class A (a)........ 343,579 4,157,306
Viacom, Inc., Class B (a)............... 43,400 1,953,000
-------------
15,850,799
-------------
MULTI-LINE RETAIL (3.5%)
Dollar General Corp..................... 169,250 3,880,902
Kohl's Corp. (a)........................ 125,520 7,939,140
Target Corp............................. 160,500 6,516,300
Wal-Mart Stores, Inc. .................. 70,080 4,146,634
-------------
22,482,976
-------------
SPECIALTY RETAIL (1.5%)
Best Buy Co., Inc. (a).................. 82,950 4,314,230
Linens'n Things, Inc. (a)............... 111,050 3,209,345
Lowe's Companies, Inc................... 43,150 2,367,209
-------------
9,890,784
-------------
TEXTILES, APPAREL & LUXURY GOODS (1.0%)
NIKE, Inc., Class B..................... 57,000 3,247,860
Reebok International Ltd................ 90,900 3,040,605
-------------
6,288,465
-------------
CONSUMER STAPLES (2.7%)
BEVERAGES (0.6%)
PepsiCo, Inc. .......................... 88,975 3,962,946
-------------
FOOD PRODUCTS (0.1%)
Hershey Foods Corp. .................... 13,900 971,610
-------------
HOUSEHOLD PRODUCTS (0.2%)
Procter & Gamble Co. ................... 13,625 1,189,326
-------------
PERSONAL PRODUCTS (0.8%)
Alberto-Culver Co., Class B............. 63,125 3,603,175
Gillette Co............................. 44,725 1,451,773
-------------
5,054,948
-------------
TOBACCO (1.0%)
Altria Group, Inc....................... 159,675 6,581,803
-------------
See Accompanying Notes to Financial Statements
98
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
SHARES VALUE
- -----------------------------------------------------------------------------
ENERGY (5.2%)
ENERGY EQUIPMENT & SERVICES (2.4%)
BJ Services Co. (a)..................... 81,880 $ 3,059,856
Cooper Cameron Corp. (a)................ 20,300 985,768
ENSCO International, Inc................ 76,850 2,147,957
Nabors Industries Ltd. (a).............. 76,900 3,087,535
Noble Corp. (a)......................... 89,735 3,246,612
Schlumberger Ltd........................ 55,500 2,747,805
-------------
15,275,533
-------------
OIL & GAS (2.8%)
Apache Corp............................. 71,404 4,925,448
ConocoPhillips.......................... 41,450 2,314,568
Devon Energy Corp....................... 38,150 1,974,263
EOG Resources, Inc...................... 35,175 1,491,420
Equitable Resources, Inc................ 38,900 1,535,383
Exxon Mobil Corp. ...................... 131,884 4,972,027
Pioneer Natural Resources Co. (a)....... 39,300 996,648
-------------
18,209,757
-------------
FINANCIALS (13.3%)
BANKS (2.7%)
Bank of America Corp.................... 110,610 8,765,843
Bank One Corp. ......................... 95,575 3,772,345
Fifth Third Bancorp..................... 13,675 801,355
U.S. Bancorp............................ 32,700 781,530
Wells Fargo & Co........................ 60,400 3,028,456
-------------
17,149,529
-------------
DIVERSIFIED FINANCIALS (7.2%)
American Express Co..................... 184,775 8,324,114
Citigroup, Inc. ........................ 468,493 20,309,172
Fannie Mae.............................. 37,425 2,424,766
Goldman Sachs Group, Inc................ 33,300 2,946,717
J.P. Morgan Chase & Co. ................ 59,815 2,046,869
MBNA Corp............................... 146,300 3,414,642
Merrill Lynch & Co., Inc................ 75,500 4,060,390
Morgan Stanley.......................... 61,475 2,999,365
-------------
46,526,035
-------------
INSURANCE (3.4%)
American International Group, Inc. ..... 99,862 5,948,779
Chubb Corp.............................. 82,700 5,618,638
Hartford Financial Services
Group, Inc........................... 81,800 4,353,396
Marsh & McLennan Companies,
Inc. ................................ 40,300 2,015,000
Prudential Financial, Inc............... 111,600 4,063,356
-------------
21,999,169
-------------
SHARES VALUE
- -----------------------------------------------------------------------------
HEALTH CARE (8.6%)
BIOTECHNOLOGY (0.8%)
Amgen, Inc. (a)......................... 62,733 $ 4,134,105
Gilead Sciences, Inc. (a)............... 15,550 1,035,767
-------------
5,169,872
-------------
HEALTH CARE EQUIPMENT & SUPPLIES (0.9%)
Applera Corp. - Applied
Biosystems Group..................... 81,300 1,769,088
Becton, Dickinson & Co.................. 102,500 3,745,350
-------------
5,514,438
-------------
HEALTH CARE PROVIDERS & SERVICES (1.5%)
Aetna, Inc.............................. 33,500 1,909,500
Caremark Rx, Inc. (a)................... 98,200 2,467,766
McKesson Corp........................... 84,450 2,797,633
UnitedHealth Group, Inc................. 15,900 785,937
WellPoint Health Networks, Inc. (a)..... 24,375 1,901,250
-------------
9,862,086
-------------
PHARMACEUTICALS (5.4%)
Bristol-Myers Squibb Co................. 168,544 4,275,961
Forest Laboratories, Inc. (a)........... 39,300 1,847,100
Johnson & Johnson....................... 136,125 6,749,078
Medco Health Solutions, Inc. (a)........ 3,540 94,508
Novartis AG, ADR........................ 104,700 3,870,759
Pfizer, Inc. .......................... 407,590 12,195,093
Shire Pharmaceuticals Group
PLC, ADR (a)......................... 102,300 2,378,475
Wyeth................................... 87,600 3,753,660
-------------
35,164,634
-------------
INDUSTRIALS (7.8%)
AEROSPACE & DEFENSE (1.5%)
L-3 Communications Holdings,
Inc. (a)............................. 97,500 4,981,275
Northrop Grumman Corp. ................. 46,800 4,468,464
-------------
9,449,739
-------------
AIR FREIGHT & LOGISTICS (0.7%)
FedEx Corp.............................. 31,825 2,135,458
Ryder System, Inc....................... 76,100 2,285,283
-------------
4,420,741
-------------
COMMERCIAL SERVICES & SUPPLIES (1.2%)
First Data Corp......................... 45,825 1,759,680
Waste Management, Inc. ................. 214,125 5,697,866
-------------
7,457,546
-------------
See Accompanying Notes to Financial Statements
99
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA BALANCED FUND (CONT.)
AUGUST 31, 2003
SHARES VALUE
- -----------------------------------------------------------------------------
ELECTRICAL EQUIPMENT (0.3%)
Emerson Electric Co..................... 37,750 $ 2,104,940
-------------
INDUSTRIAL CONGLOMERATES (2.7%)
3M Co. ................................. 29,800 4,245,606
General Electric Co..................... 452,675 13,385,600
-------------
17,631,206
-------------
MACHINERY (1.4%)
Deere & Co. ............................ 87,600 4,950,276
Dover Corp.............................. 60,300 2,292,606
SPX Corp................................ 43,300 2,136,855
-------------
9,379,737
-------------
INFORMATION TECHNOLOGY (12.3%)
COMMUNICATIONS EQUIPMENT (1.7%)
Cisco Systems, Inc. (a)................. 216,385 4,143,773
Emulex Corp. (a)........................ 99,710 2,413,979
Motorola, Inc. ......................... 137,700 1,477,521
QUALCOMM, Inc........................... 64,400 2,658,432
-------------
10,693,705
-------------
COMPUTERS & PERIPHERALS (0.2%)
EMC Corp. (a)........................... 121,700 1,551,675
-------------
INTERNET SOFTWARE & SERVICES (0.6%)
Yahoo!, Inc. (a)........................ 108,000 3,607,200
-------------
OFFICE ELECTRONICS (0.1%)
Xerox Corp. (a)......................... 51,900 557,780
-------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (4.8%)
Advanced Micro Devices, Inc. (a)........ 225,300 2,543,637
Broadcom Corp., Class A (a)............. 81,700 2,232,044
Intel Corp.............................. 170,375 4,876,133
Linear Technology Corp.................. 83,400 3,437,748
Marvell Technology Group Ltd. (a)....... 67,800 2,859,126
National Semiconductor Corp. (a)........ 100,300 2,922,742
NVIDIA Corp. (a)........................ 148,300 2,693,128
Silicon Laboratories, Inc. (a).......... 74,900 3,326,309
Taiwan Semiconductor Manufacturing
Co., Ltd., ADR (a)................... 288,349 3,396,751
Vitessee Semiconductor Corp. (a)........ 149,600 1,021,768
Xilinx, Inc. (a)........................ 57,100 1,760,964
-------------
31,070,350
-------------
SOFTWARE (4.9%)
Amdocs Ltd. (a)......................... 124,300 2,781,834
BEA Systems, Inc. (a)................... 95,600 1,295,380
Computer Associates
International, Inc................... 75,500 1,935,065
Mercury Interactive Corp. (a)........... 54,400 2,387,616
SHARES VALUE
- -----------------------------------------------------------------------------
Microsoft Corp. ........................ 558,475 $ 14,810,757
Oracle Corp. (a)........................ 288,740 3,690,097
Symantec Corp. (a)...................... 34,695 1,992,534
VERITAS Software Corp. (a).............. 89,700 3,092,856
-------------
31,986,139
-------------
MATERIALS (1.1%)
CHEMICALS (0.7%)
Air Products & Chemicals, Inc........... 47,650 2,254,798
Praxair, Inc............................ 33,850 2,160,307
-------------
4,415,105
-------------
CONTAINERS & PACKAGING (0.4%)
Smurfit-Stone Container Corp. (a)....... 150,300 2,371,734
-------------
TELECOMMUNICATION SERVICES (0.4%)
DIVERSIFIED TELECOMMUNICATION SERVICES (0.4%)
SBC Communications, Inc................. 51,915 1,167,568
Verizon Communications, Inc. ........... 40,560 1,432,579
-------------
2,600,147
-------------
UTILITIES (0.4%)
MULTI-UTILITIES & UNREGULATED POWER (0.4%)
Consolidated Edison, Inc................ 26,300 1,039,639
DTE Energy Co........................... 41,700 1,455,747
-------------
2,495,386
-------------
Total Common Stocks
(Cost of $340,074,726)............... 411,209,819
-------------
PREFERRED STOCK (0.4%)
CONSUMER DISCRETIONARY (0.4%)
MEDIA (0.3%)
News Corp., Ltd., ADR
(Cost of $1,811,447)................. 85,825 2,482,059
-------------
U.S. GOVERNMENT & AGENCY
SECURITIES (14.0%) PAR
U.S. TREASURY NOTES & BONDS (4.6%)
U.S. Treasury Bond,
6.250% 08/15/23...................... $11,950,000 13,268,706
U.S. Treasury Inflation Index Note,
3.625% 01/15/08...................... 5,912,608 6,513,110
U.S. Treasury Notes:
3.500% 11/15/06...................... 7,165,000 7,357,001
4.875% 02/15/12...................... 2,250,000 2,341,672
-------------
29,480,489
-------------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (GNMA) (0.3%)
7.000% 10/15/31 - 05/15/32.............. 2,144,485 2,267,291
-------------
See Accompanying Notes to Financial Statements
100
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
PAR VALUE
- -----------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE
CORP. (FHLMC) (1.6%)
4.500% 10/20/18 (b)..................... $ 2,300,000 $ 2,249,688
6.000% 03/01/17 - 08/01/17.............. 4,506,179 4,662,292
6.500% 05/01/32 - 08/01/32.............. 3,236,468 3,353,047
-------------
10,265,027
-------------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION (FNMA) (4.3%)
4.500% 09/18/18 (b)..................... 17,355,000 17,051,287
5.000% 12/01/17 - 09/01/18.............. 9,052,601 9,099,179
5.915% 07/01/32......................... 1,337,072 1,375,742
-------------
27,526,208
-------------
FEDERAL HOUSING ADMINISTRATION (FHA) (0.2%)
FHA Insured Project,
Pool #53-43077,
9.125% 03/25/33...................... 1,553,572 1,572,038
-------------
AGENCY COLLATERALIZED MORTGAGE
OBLIGATIONS (3.0%)
FHLMC Multiclass Mtg. Partn. Ctfs., Gtd.:
Series 2235, Class VN,
7.000% 06/15/14...................... 3,980,000 4,128,555
Series 2462, Class JE,
6.500% 11/15/30...................... 1,810,000 1,887,271
FNMA Gtd. Remic Pass Thru Ctfs.:
Remic Tr. 2001-55, Class PC,
6.500% 10/25/31...................... 5,090,000 5,335,576
Remic Tr. 2001-56, Class KD,
6.500% 08/15/31...................... 2,260,000 2,319,726
Remic Tr. 2002-8, Class PD,
6.500% 07/25/30...................... 3,570,000 3,749,518
Remic Tr. 2002-27, Class OG,
6.500% 12/25/30...................... 1,820,000 1,864,999
-------------
19,285,645
-------------
Total U.S. Government & Agency Securities
(Cost of $89,848,437)................ 90,396,698
-------------
CORPORATE NOTES & BONDS (13.8%)
INDUSTRIALS (7.1%)
Abitibi-Consolidated, Inc.,
6.000%, 06/20/13..................... 100,000 90,328
Acetex Corp.
10.875% 08/01/09..................... 25,000 27,250
Advance PCS,
8.500% 04/01/08...................... 250,000 263,750
Airgas, Inc.,
9.125% 10/01/11...................... 50,000 55,000
Alcan, Inc.,
7.250% 03/15/31...................... 675,000 762,651
Allied Waste North America, Inc.,
10.000% 08/01/09..................... 250,000 270,625
PAR VALUE
- -----------------------------------------------------------------------------
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 1,487,088
AmerisourceBergen Corp.,
8.125% 09/01/08...................... 225,000 237,937
Anadarko Finance Co.,
7.500% 05/01/31...................... 1,250,000 1,444,204
Anthem, Inc.,
6.800% 08/01/12...................... 925,000 1,015,581
Apogent Technologies, Inc.,
6.500% 05/15/13 (c).................. 25,000 24,625
Arch Western Finance,
6.750% 07/01/13 (c).................. 155,000 153,837
AT&T Corp.,
8.000% 11/15/31...................... 650,000 735,868
AT&T Wireless Services, Inc.,
8.750% 03/01/31...................... 750,000 891,741
Ball Corp.,
7.750% 08/01/06...................... 250,000 268,125
Boeing Co.,
6.125% 02/15/33...................... 850,000 802,547
British Sky Broadcasting Group,
7.300% 10/15/06...................... 100,000 109,250
Canadian National Railway Co.:
6.450% 07/15/06...................... 300,000 326,447
7.195% 01/02/16...................... 891,544 1,001,350
Canandaigua Brands, Inc.,
8.500% 03/01/09...................... 250,000 260,000
Cascades, Inc.,
7.250% 02/15/13 (c).................. 115,000 113,562
Chesapeake Energy Corp.:
7.500% 09/15/13 (c).................. 145,000 146,812
8.375% 11/01/08...................... 50,000 52,750
9.000% 08/15/12...................... 20,000 21,600
Cinemark USA, Inc.,
9.000% 02/01/13 (c).................. 170,000 181,050
Coca-Cola Enterprises, Inc.,
6.750% 01/15/38...................... 1,045,000 1,114,531
Comcast Corp.,
7.050% 03/15/33...................... 375,000 390,936
Coors Brewing Co.,
6.375% 05/15/12...................... 900,000 967,609
Corrections Corp. of America,
7.500% 05/01/11...................... 100,000 101,500
Cott Beverages, Inc.,
8.000% 12/15/11...................... 250,000 261,250
Cox Enterprises, Inc.,
8.000% 02/15/07 (c).................. 1,050,000 1,194,931
See Accompanying Notes to Financial Statements
101
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA BALANCED FUND (CONT.)
AUGUST 31, 2003
PAR VALUE
- -----------------------------------------------------------------------------
CSC Holdings, Inc.:
8.125% 08/15/09...................... $ 25,000 $ 25,813
9.875% 02/15/13...................... 130,000 135,850
DaimlerChrysler NA Holding Corp.,
8.500% 01/18/31...................... 475,000 535,572
Deutsche Telekom International
Finance BV,
8.500% 06/15/10...................... 525,000 618,796
Dex Media East LLC,
12.125% 11/15/12..................... 75,000 90,563
Diageo Capital PLC,
3.375% 03/20/08...................... 1,100,000 1,077,735
DirecTV Holdings,
8.375% 03/15/13 (c).................. 95,000 103,787
EquiStar Chemical:
10.125% 09/01/08..................... 25,000 25,000
10.625% 05/01/11 (c)................. 25,000 24,875
Ethyl Corp.,
8.875% 05/01/10 (c).................. 50,000 50,500
Extended Stay America, Inc.,
9.875% 06/15/11...................... 150,000 159,375
General Electric Co.,
5.000% 02/01/13...................... 2,500,000 2,468,128
Grant Prideco, Inc.:
9.000% 12/15/09...................... 220,000 231,550
9.625% 12/01/07...................... 15,000 15,975
Harrah's Operating Co., Inc.,
7.875% 12/15/05...................... 125,000 135,000
Hasbro, Inc.,
8.500% 03/15/06...................... 100,000 108,000
Houghton Mifflin Co.,
9.875% 02/01/13 (c).................. 205,000 223,450
International Business Machines
Corp.,
5.875% 11/29/32...................... 1,700,000 1,642,317
Iron Mountain, Inc.,
7.750% 01/15/15...................... 250,000 255,000
John Deere Capital Corp.,
3.900% 01/15/08...................... 550,000 551,396
K & F Industries, Inc.,
9.625% 12/15/10...................... 145,000 157,325
KB Home,
8.625% 12/15/08...................... 250,000 262,500
Key Energy Services, Inc.,
6.375% 05/01/13...................... 80,000 76,000
Kroger Co.,
6.200% 06/15/12...................... 650,000 682,902
PAR VALUE
- -----------------------------------------------------------------------------
L-3 Communications Corp.,
7.625% 06/15/12...................... $ 200,000 $ 208,000
Lamar Media Corp.,
8.625% 09/15/07...................... 125,000 129,063
Lear Corp.,
7.960% 05/15/05...................... 250,000 268,125
LIN Television Corp.,
6.500% 05/15/13 (c).................. 125,000 121,250
Lockheed Martin Corp.,
8.500% 12/01/29...................... 800,000 1,018,827
Lowe's Companies, Inc.,
6.500% 03/15/29...................... 700,000 731,291
MacDermid, Inc.,
9.125% 07/15/11...................... 25,000 27,500
Marathon Oil Corp.,
6.800% 03/15/32...................... 975,000 1,008,192
Mediacom LLC,
9.500% 01/15/13...................... 75,000 75,750
Newell Rubbermaid, Inc.,
4.000% 05/01/10...................... 950,000 898,581
Nextel Communications, Inc.:
9.375% 11/15/09...................... 25,000 27,000
9.750% 10/31/07...................... 150,000 154,500
Occidental Petroleum Corp.,
4.250% 03/15/10...................... 775,000 757,783
Offshore Logistics, Inc.,
6.125% 06/15/13 (c).................. 205,000 194,750
Omnicare, Inc.,
8.125% 03/15/11...................... 175,000 185,500
Owens-Illinois, Inc.,
7.350% 05/15/08...................... 150,000 144,750
Park Place Entertainment Corp.,
9.375% 02/15/07...................... 250,000 273,750
Peabody Energy Corp.,
6.875% 03/15/13 (c).................. 175,000 175,000
PepsiAmericas, Inc.,
3.875% 09/12/07...................... 1,450,000 1,442,722
Province Healthcare Co.,
7.500% 06/01/13...................... 50,000 48,125
R.H. Donnelley Financial Corp.:
8.875% 12/15/10 (c).................. 30,000 32,850
10.875% 12/15/12 (c)................. 215,000 250,475
Rogers Cable, Inc.:
6.250% 06/15/13 (c).................. 50,000 46,938
7.875% 05/01/12...................... 185,000 194,019
Scotts Co.,
8.625% 01/15/09...................... 240,000 251,400
Select Medical Corp.,
9.500% 06/15/09...................... 200,000 216,000
Silgan Holdings, Inc.,
9.000% 06/01/09...................... 237,000 245,295
See Accompanying Notes to Financial Statements
102
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
PAR VALUE
- -----------------------------------------------------------------------------
Sinclair Broadcasting Group, Inc.,
8.000% 03/15/12 ..................... $ 220,000 $ 229,350
Smurfit-Stone Container Corp.:
8.250% 10/01/12...................... 55,000 56,925
8.375% 07/01/12...................... 25,000 25,750
9.750% 02/01/11...................... 35,000 37,975
Speedway Motorsports, Inc.,
6.750% 06/01/13 (c).................. 100,000 99,000
Starwood Hotels & Resorts
Worldwide, Inc.,
7.375% 05/01/07...................... 100,000 104,750
Station Casinos, Inc.:
8.875% 12/01/08...................... 50,000 52,125
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...................... 685,000 735,859
TD Funding Corp.,
8.375% 07/15/11...................... 125,000 130,625
Teekay Shipping Corp.,
8.875% 07/15/11...................... 300,000 325,875
Time Warner, Inc.,
7.975% 08/15/04...................... 1,153,000 1,210,823
Toll Corp.,
7.750% 09/15/07...................... 250,000 256,250
Triad Hospitals, Inc.,
8.750% 05/01/09...................... 200,000 213,000
Union Pacific Corp.,
3.875% 02/15/09...................... 1,000,000 975,051
United Rentals, Inc.,
10.750% 04/15/08..................... 250,000 275,000
United Technologies Corp.,
6.500% 06/01/09...................... 1,685,000 1,889,264
Universal Compression, Inc.,
7.250% 05/15/10 (c).................. 50,000 50,500
Verizon Global Funding Corp.,
7.250% 12/01/10...................... 1,800,000 2,042,872
Viacom, Inc.,
5.500% 05/15/33...................... 425,000 379,801
Vintage Petroleum, Inc.,
9.750% 06/30/09...................... 160,000 169,600
Wabtec Corp.,
6.875% 07/31/13...................... 15,000 14,850
Wal-Mart Stores, Inc.,
4.375% 07/12/07...................... 1,570,000 1,631,703
Westport Resources Corp.,
8.250% 11/01/11...................... 265,000 283,550
XTO Energy, Inc.,
7.500% 04/15/12...................... 300,000 322,500
PAR VALUE
- -----------------------------------------------------------------------------
Yum! Brands, Inc.,
8.500% 04/15/06...................... $ 250,000 $ 273,125
-------------
45,931,953
-------------
FINANCIALS (4.6%)
American General Finance Corp.,
5.375% 09/01/09...................... 475,000 497,408
Bank of America Corp.,
7.800% 02/15/10...................... 2,225,000 2,611,260
Bank One Corp.,
2.625% 06/30/08...................... 1,300,000 1,222,087
CIT Group, Inc.,
7.250% 08/15/05...................... 890,000 965,361
Citigroup, Inc.,
7.250% 10/01/10...................... 1,565,000 1,794,612
Ford Motor Credit Co.,
7.375% 10/28/09...................... 2,490,000 2,573,953
General Motors Acceptance Corp.,
4.500% 07/15/06...................... 1,875,000 1,879,958
Goldman Sachs Group, Inc.,
6.125% 02/15/33...................... 675,000 655,750
Health Care Property
Investors, Inc.,
6.450% 06/25/12...................... 1,200,000 1,241,688
Health Care REIT, Inc.,
7.500% 08/15/07...................... 150,000 161,222
Household Finance Corp.,
6.400% 06/17/08...................... 1,250,000 1,366,456
iStar Financial, Inc.,
8.750% 08/15/08...................... 50,000 54,915
J.P. Morgan Chase & Co.,
5.750% 01/02/13...................... 800,000 823,464
Lehman Brothers Holdings, Inc.,
4.000% 01/22/08...................... 1,325,000 1,328,395
Merrill Lynch & Co., Inc.,
2.470% 03/10/06...................... 1,250,000 1,240,450
Morgan Stanley:
4.250% 05/15/10...................... 375,000 364,640
6.100% 04/15/06...................... 700,000 756,519
SLM Corp.,
5.125% 08/27/12...................... 1,900,000 1,889,210
US Bank NA,
6.375% 08/01/11...................... 2,050,000 2,248,797
Wachovia Corp.,
3.500% 08/15/08...................... 2,100,000 2,050,228
Washington Mutual, Inc.,
5.625% 01/15/07...................... 1,275,000 1,366,008
Wells Fargo & Co.,
7.250% 08/24/05...................... 2,000,000 2,191,516
-------------
29,283,897
-------------
See Accompanying Notes to Financial Statements
103
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA BALANCED FUND (CONT.)
AUGUST 31, 2003
PAR VALUE
- -----------------------------------------------------------------------------
UTILITIES (1.0%)
Dominion Resources, Inc.,
2.800% 02/15/05...................... $ 1,250,000 $ 1,255,127
FPL Group Capital, Inc.,
6.125% 05/15/07...................... 1,600,000 1,743,794
Kinder Morgan Energy Partners LP,
8.000% 03/15/05...................... 1,475,000 1,604,356
Pogo Producing Co.,
8.250% 04/15/11...................... 30,000 31,950
Progress Energy, Inc.,
7.750% 03/01/31...................... 500,000 553,574
Southern Power Co.,
6.250% 07/15/12...................... 1,300,000 1,378,218
-------------
6,567,019
-------------
INTERNATIONAL (1.1%)
Ontario Province,
3.500% 09/17/07...................... 2,200,000 2,198,746
Quebec Province,
6.500% 01/17/06...................... 2,100,000 2,291,552
Republic of Italy,
2.500% 03/31/06...................... 1,300,000 1,299,923
United Mexican States,
8.000% 09/24/22...................... 1,150,000 1,204,625
-------------
6,994,846
-------------
Total Corporate Notes & Bonds
(Cost of $85,560,831)................ 88,777,715
-------------
OTHER SECURITIZED LOANS (5.7%)
ASSET-BACKED SECURITIES (3.6%)
Cityscape Home Equity Loan Trust:
Series 1997-B, Class A7,
7.410% 05/25/28...................... 1,665,402 1,688,512
Series 1997-4, Class A4,
7.440% 10/25/18...................... 1,384,353 1,433,402
First Alliance Mortgage Trust,
Series 1996-1, Class A1,
7.340% 06/20/27...................... 290,488 290,559
IMC Home Equity Loan Trust:
Series 1997-3, Class A6,
7.520% 08/20/28...................... 1,085,860 1,117,362
Series 1997-5, Class A9,
7.310% 11/20/28...................... 2,159,988 2,257,659
Merit Securities Corp.,
Series 13, Class A4,
7.880% 12/28/33...................... 3,980,000 3,849,574
PAR VALUE
- -----------------------------------------------------------------------------
Oakwood Mortgage Investors, Inc.,
Series 2000-D, Class A4,
7.400% 07/15/30...................... $ 1,195,000 $ 1,095,569
Salomon Brothers Mortgage
Securities VII,
Series 1998-AQ1, Class A5,
7.150% 06/25/28...................... 3,150,000 3,311,051
SLM Student Loan Trust:
Series 1997-3, Class A2,
1.604% 10/25/10 (d).................. 3,532,741 3,554,262
Series 1997-4, Class A2,
1.714% 10/25/10 (d).................. 4,518,932 4,578,360
-------------
23,176,310
-------------
COLLATERALIZED MORTGAGE OBLIGATIONS (1.1%)
Bear Stearns Mortgage Securities, Inc.,
Series 1996-2, Class A1,
4.291% 01/28/25 (d).................. 911,689 897,028
Countrywide Home Loans, Inc.,
Series 2002-16, Class 1A1,
6.500% 09/25/32...................... 61,711 61,750
First Nationwide Trust,
Series 2000-1, Class IIA3,
8.000% 10/25/30...................... 2,669,297 2,691,517
Residential Asset Securitization Trust,
Series 2002-A7, Class A2,
5.180% 01/25/27...................... 1,722,544 1,725,609
SACO I, Inc.,
Series 1995-1, Class A,
12.268% 09/25/24 (c)(d).............. 68,576 68,576
Structured Asset Securities Corp.:
Series 2001-12, Class 1A4,
5.800% 09/25/31...................... 228,313 230,700
Series 2003-14, Class 1A3,
5.500% 05/25/33...................... 1,688,546 1,723,342
-------------
7,398,522
-------------
COMMERCIAL MORTGAGE-BACKED SECURITIES (1.0%)
GMAC Commercial Mortgage Asset Corp.,
Series 2001-FLAA, Class B1,
1.600% 06/15/13 (c)(d)............... 1,441,242 1,440,398
Nationslink Funding Corp.,
Series 1999-SL, Class A5,
6.888% 05/10/07...................... 4,380,000 4,837,227
-------------
6,277,625
-------------
Total Other Securitized Loans
(Cost of $36,106,366)................ 36,852,457
-------------
See Accompanying Notes to Financial Statements
104
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
PAR VALUE
- -----------------------------------------------------------------------------
SHORT-TERM OBLIGATION (5.8%)
Repurchase agreement with State
Street Bank & Trust Co., dated
08/29/03, due 09/02/03 at 0.860%,
collateralized by a U.S. Treasury
Note maturing 11/15/03, market
value of $38,087,457 (repurchase
proceeds $37,343,568)
(Cost of $37,340,000)................ $37,340,000 $ 37,340,000
-------------
TOTAL INVESTMENTS (103.4%)
(Cost of $590,741,807) (e)........... 667,058,748
-------------
OTHER ASSETS & LIABILITIES, NET (-3.4%)...... (21,867,391)
-------------
NET ASSETS (100.0%).......................... $ 645,191,357
=============
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 August 31, 2003, the value
of these securities amounted to $4,697,166, which represents 0.7% of net
assets.
(d) Variable rate security. The rate reported is the rate in effect at August
31, 2003.
(e) Cost for federal income tax purposes is $595,220,691.
ACRONYM NAME
------- ----
ADR American Depositary Receipt
COLUMBIA SHORT TERM BOND FUND
AUGUST 31, 2003
PAR VALUE
- -----------------------------------------------------------------------------
U.S. GOVERNMENT & AGENCY SECURITIES (18.1%)
U.S. TREASURY NOTES & BONDS (2.1%)
U.S. Treasury Inflation Index Notes,
3.625% 01/15/08...................... $10,375,490 $ 11,429,256
-------------
U.S. AGENCY BONDS (1.4%)
Federal Home Loan Bank,
6.375% 11/14/03...................... 5,250,000 5,305,209
Federal Home Loan Mortgage Corp.,
4.625% 03/22/06...................... 1,000,000 1,001,798
Federal National Mortgage Association,
3.125% 11/15/03...................... 75,000 75,308
Morocco Government AID Bond,
1.423% 05/01/23 (a).................. 500,000 495,000
PAR VALUE
- -----------------------------------------------------------------------------
Small Business Administration,
1.625% 06/25/22 (a).................. $ 636,489 $ 637,451
-------------
7,514,766
-------------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (GNMA) (0.6%)
6.500% 09/13/13-07/15/32............. 2,318,583 2,419,944
7.000% 11/15/13-08/15/29............. 705,413 748,744
-------------
3,168,688
-------------
FEDERAL HOME LOAN MORTGAGE
CORP. (FHLMC) (5.2%)
4.500% 09/18/18 (b).................. 15,100,000 14,821,586
5.500% 05/01/17-12/01/17............. 10,597,503 10,826,699
6.000% 10/01/06-08/01/17............. 2,246,831 2,322,132
7.000% 05/01/19...................... 1,397 1,471
7.500% 09/01/15...................... 327,137 348,460
8.500% 07/01/30...................... 342,623 367,971
-------------
28,688,319
-------------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION (FNMA) (4.7%)
4.500% 09/18/18 (b).................. 13,360,000 13,126,200
5.000% 12/01/17-07/01/18............. 245,616 251,976
5.500% 02/01/18...................... 5,530,493 5,652,587
6.000% 03/01/09-05/01/17............. 4,767,932 4,919,619
6.500% 03/01/12-07/01/32............. 264,819 277,503
7.500% 08/01/15...................... 323,024 345,230
8.000% 05/01/05-07/01/31............. 1,192,034 1,278,451
-------------
25,851,566
-------------
AGENCY COLLATERALIZED MORTGAGE
OBLIGATIONS (4.1%)
FHLMC:
Series 1558, Class C,
6.500% 07/15/23...................... 330,129 338,102
Series 1839, Class C,
6.500% 04/15/25...................... 77,787 78,060
Series 2500, Class PE,
6.000% 06/15/31...................... 1,430,000 1,445,192
Multi-class Mtg. Partn. Ctfs., Gtd.:
Series 1138, Class G,
8.500% 09/15/06...................... 100,914 101,520
Series 1283, Class K,
7.000% 06/15/22...................... 557,699 575,848
Series 2387, Class D,
5.500% 12/15/26...................... 808,194 819,065
Structured Pass Thru Securities,
Series T-41, Class 1A1,
3.340% 08/25/16...................... 779,625 781,160
FNMA:
Series 2001-34, Class AE,
6.000% 07/25/29...................... 1,250,000 1,272,698
Series 2001-55, Class PC,
6.500% 10/25/31...................... 1,900,000 1,991,669
See Accompanying Notes to Financial Statements
105
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA SHORT TERM BOND FUND (CONT.)
AUGUST 31, 2003
PAR VALUE
- -----------------------------------------------------------------------------
Series 2002-42, Class A,
6.000% 01/25/16...................... $ 1,384,892 $ 1,420,883
Series 2002-W6, Class 1A1,
3.090% 12/25/28...................... 1,355,756 1,359,615
Series 2003-29, Class WY,
4.000% 04/25/33...................... 1,315,278 1,311,772
Series 2003-92, Class FA,
1.650% 09/25/18 (a).................. 6,000,000 6,005,400
Gtd. Remic Pass Thru Certificates:
Remic Tr. 1991-146, Class Z,
8.000% 10/25/06...................... 40,788 43,326
Remic Tr. 1993-92, Class C,
(c) 05/25/23......................... 1,295,000 979,915
Remic Tr. 1998-36, Class GA,
6.000% 12/18/27...................... 2,114,749 2,156,787
GNMA Gtd. Remic Pass Thru Certificates,
Remic Tr. 1997-7, Class PC,
5.000% 05/16/27...................... 1,782,385 1,796,214
-------------
22,477,226
-------------
Total U.S. Government & Agency Securities
(Cost of $99,088,536)................ 99,129,821
-------------
CORPORATE NOTES & BONDS (32.5%)
INDUSTRIAL (14.3%)
Anthem, Inc.,
4.875% 08/01/05...................... 2,225,000 2,319,471
AOL Time Warner, Inc.,
6.125% 04/15/06...................... 1,750,000 1,872,671
AT&T Corp.,
7.000% 11/15/06...................... 1,300,000 1,442,908
AT&T Wireless Services, Inc.,
7.500% 05/01/07...................... 1,970,000 2,201,278
Bell Atlantic Financial Services, Inc.,
7.600% 03/15/07...................... 600,000 680,036
Boeing, Inc.,
8.100% 11/15/06...................... 1,820,000 2,064,144
Canadian National Railway Co.,
6.450% 07/15/06...................... 460,000 500,553
Caterpillar Financial Services Corp.,
6.875% 08/01/04...................... 2,500,000 2,621,660
ChevronTexaco Capital Co.,
3.500% 09/17/07...................... 3,350,000 3,371,611
Coca-Cola Enterprises, Inc.,
8.000% 01/04/05...................... 650,000 701,895
Colgate-Palmolive Co.,
1.255% 08/16/04 (a).................. 3,000,000 3,004,680
Conoco, Inc.,
5.900% 04/15/04...................... 150,000 154,196
PAR VALUE
- -----------------------------------------------------------------------------
ConocoPhillips,
8.500% 05/25/05...................... $ 3,165,000 $ 3,507,238
Costco Wholesale Corp.,
5.500% 03/15/07...................... 640,000 690,433
Cox Enterprises, Inc.,
8.000% 02/15/07 (d).................. 1,300,000 1,479,439
DaimlerChrysler NA Holding Corp.,
4.750% 01/15/08...................... 1,575,000 1,567,256
Deutsche Telekom International
Finance,
8.500% 06/15/10...................... 1,450,000 1,709,056
Devon Energy Corp.,
2.750% 08/01/06...................... 2,825,000 2,789,199
Gannett Co., Inc.,
4.950% 04/01/05...................... 2,000,000 2,092,434
GTE Southwest, Inc.,
6.000% 01/15/06...................... 3,725,000 4,015,665
Honeywell International, Inc.,
5.125% 11/01/06...................... 3,120,000 3,325,374
International Business Machines Corp.:
2.375% 11/01/06...................... 2,900,000 2,862,149
4.250% 09/15/09...................... 600,000 599,425
Jones Intercable, Inc.,
7.625% 04/15/08...................... 1,875,000 2,111,229
Kellogg Co.,
6.000% 04/01/06...................... 1,250,000 1,350,002
Kroger Co.,
7.650% 04/15/07...................... 1,585,000 1,782,101
Lockheed Martin Corp.,
7.700% 06/15/08...................... 990,000 1,143,014
Lowe's Companies, Inc.,
7.500% 12/15/05...................... 1,675,000 1,864,525
Marathon Oil Corp.,
5.375% 06/01/07...................... 2,725,000 2,889,429
Nestle Holdings (UK) PLC,
5.000% 12/08/03...................... 1,000,000 1,010,163
Newell Rubbermaid, Inc.,
2.000% 05/01/05...................... 3,725,000 3,712,346
Pepsi Bottling Holdings, Inc.,
5.375% 02/17/04 (d).................. 1,750,000 1,778,077
Procter & Gamble Co.,
4.750% 06/15/07...................... 725,000 759,277
Target Corp.,
5.950% 05/15/06...................... 1,000,000 1,083,531
TCI Communications, Inc.,
7.250% 08/01/05...................... 1,125,000 1,208,527
Time Warner, Inc.,
7.975% 08/15/04...................... 375,000 393,806
Union Pacific Corp.,
3.875% 02/15/09...................... 1,825,000 1,779,468
See Accompanying Notes to Financial Statements
106
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
PAR VALUE
- -----------------------------------------------------------------------------
United Technologies Corp.,
4.875% 11/01/06...................... $ 2,475,000 $ 2,612,023
Wal-Mart Stores, Inc.:
3.250% 09/29/03...................... 2,500,000 2,503,765
4.375% 07/12/07...................... 425,000 441,703
WellPoint Health Networks, Inc.,
6.375% 06/15/06...................... 2,350,000 2,561,766
Wyeth,
6.250% 03/15/06...................... 1,875,000 2,035,249
-------------
78,592,772
-------------
FINANCIAL (14.1%)
American General Finance Corp.,
5.375% 09/01/09...................... 150,000 157,076
Associates Corp. of North America,
5.750% 11/01/03...................... 2,500,000 2,518,300
AXA Financial, Inc.,
9.000% 12/15/04...................... 2,925,000 3,162,598
Bank One Corp.,
2.625% 06/30/08...................... 3,100,000 2,914,208
BankAmerica Corp.,
6.625% 10/15/07...................... 5,075,000 5,597,238
CIT Group, Inc.:
7.250% 08/15/05...................... 125,000 135,584
7.625% 08/16/05...................... 1,065,000 1,166,424
Citigroup, Inc.,
6.750% 12/01/05...................... 2,700,000 2,951,286
Countrywide Home Loans, Inc.,
5.250% 06/15/04...................... 1,175,000 1,209,661
Ford Motor Credit Co.,
7.375% 10/28/09...................... 5,425,000 5,607,909
General Electric Capital Corp.,
7.250% 05/03/04...................... 515,000 535,069
General Motors Acceptance Corp.,
4.500% 07/15/06...................... 850,000 852,247
6.750% 01/15/06...................... 2,500,000 2,637,678
Goldman Sachs Group, Inc.,
4.125% 01/15/08...................... 2,560,000 2,577,382
Health Care Property Investors, Inc.,
6.875% 06/08/05...................... 2,075,000 2,189,478
Household Finance Corp.,
6.400% 06/17/08...................... 3,225,000 3,525,457
J.P. Morgan Chase & Co.,
3.625% 05/01/08...................... 3,500,000 3,449,149
Lehman Brothers Holdings, Inc.,
4.000% 01/22/08...................... 1,900,000 1,904,868
8.750% 03/15/05...................... 500,000 548,203
Merrill Lynch & Co., Inc.,
2.470% 03/10/06...................... 2,460,000 2,441,206
Morgan Stanley,
6.100% 04/15/06...................... 2,500,000 2,701,852
PAR VALUE
- -----------------------------------------------------------------------------
SLM Corp.,
5.625% 04/10/07...................... $ 4,000,000 $ 4,288,648
Security Capital Group, Inc.,
7.150% 06/15/07...................... 6,315,000 7,044,465
U.S. Bancorp,
3.125% 03/15/08...................... 5,750,000 5,576,666
Wachovia Corp.,
4.950% 11/01/06...................... 3,300,000 3,493,769
Washington Mutual, Inc.,
5.625% 01/15/07...................... 2,600,000 2,785,585
Wells Fargo & Co.,
7.250% 08/24/05...................... 2,675,000 2,931,153
Wells Fargo Financial Inc.,
7.000% 11/01/05...................... 2,180,000 2,388,818
-------------
77,291,977
-------------
UTILITIES (1.5%)
Dominion Resources, Inc.,
2.800% 02/15/05...................... 2,050,000 2,058,409
FPL Group Capital, Inc.:
6.875% 06/01/04...................... 250,000 259,590
7.625% 09/15/06...................... 2,500,000 2,826,175
Kinder Morgan Energy Partners LP,
8.000% 03/15/05...................... 915,000 995,245
Progress Energy, Inc.,
5.850% 10/30/08...................... 1,125,000 1,183,230
Virginia Electric and Power Co.,
5.375% 02/01/07...................... 1,200,000 1,274,069
-------------
8,596,718
-------------
INTERNATIONAL (2.6%)
Canadian Government Bond,
6.750% 08/28/06...................... 1,000,000 1,110,916
Province of Ontario,
3.500% 09/17/07...................... 3,500,000 3,498,005
Quebec Province:
5.500% 04/11/06...................... 4,125,000 4,416,312
6.500% 01/17/06...................... 1,100,000 1,200,337
Republic of Italy,
2.500% 03/31/06...................... 1,950,000 1,949,885
United Mexican States,
4.625% 10/08/08...................... 2,000,000 1,985,000
-------------
14,160,455
-------------
Total Corporate Notes & Bonds
(Cost of $177,515,391)............... 178,641,922
-------------
OTHER SECURITIZED LOANS (32.1%)
ASSET BACKED SECURITIES (11.5%)
Americredit Automobile Receivables Trust:
Series 2000-1, Class B,
7.160% 09/05/05...................... 2,830,000 2,897,299
See Accompanying Notes to Financial Statements
107
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA SHORT TERM BOND FUND (CONT.)
AUGUST 31, 2003
PAR VALUE
- -----------------------------------------------------------------------------
Series 2001-B, Class A4,
5.370% 06/12/08...................... $ 1,000,000 $ 1,035,665
Chase Manhattan Auto Owner Trust,
Series 2000-A, Class A4,
6.260% 06/15/07...................... 1,861,797 1,906,287
Ford Credit Auto Owner Trust:
Series 2000-C, Class A5,
7.260% 07/15/04...................... 559,194 561,057
Series 2002-B, Class A3A,
4.140% 12/15/05...................... 3,500,000 3,560,335
Green Tree Financial Corp.,
7.900% 06/15/27...................... 385,801 385,002
Harley Davidson Motorcycle Trust,
3.090% 06/15/10...................... 1,525,000 1,551,572
Honda Auto Receivables Owner Trust:
Series 2001-2, Class A4,
5.090% 10/18/06...................... 2,750,000 2,820,487
Series 2002-3, Class A3,
3.000% 05/18/06...................... 2,000,000 2,029,744
IMC Home Equity Loan Trust:
Series 1995-3, Class A5,
7.500% 04/25/26...................... 1,312,000 1,312,087
Series 1997-3, Class A6,
7.520% 08/20/28...................... 629,799 648,070
Series 1997-3, Class A7,
7.080% 08/20/28...................... 335,807 344,827
Merit Securities Corp.,
Series 1999-13, Class A4,
7.880% 12/28/33...................... 6,435,000 6,224,122
Nissan Auto Receivables Owner Trust,
Series 2002-B, Class A4,
4.600% 09/17/07...................... 2,500,000 2,607,296
Oakwood Mortgage Investors, Inc.,
Series 2000-D, Class A4,
7.400% 07/15/30...................... 2,680,000 2,457,009
SLMA Student Loan Trust:
Series 1996-2, Class A2,
1.720% 07/27/09 (a).................. 8,952,533 9,047,819
Series 1996-3, Class A2,
1.690% 10/26/09 (a).................. 2,736,519 2,754,168
Series 1997-2, Class A2,
1.610% 01/25/10 (a).................. 1,980,333 1,988,219
Series 1997-4, Class A2,
1.760% 10/25/10 (a).................. 1,635,812 1,657,325
Series 1998-1, Class A2,
1.770% 10/25/11 (a).................. 2,566,096 2,594,836
Series 1998-2, Class A2,
1.740% 01/25/14 (a).................. 12,843,182 12,956,554
PAR VALUE
- -----------------------------------------------------------------------------
Toyota Auto Receivables Owner Trust,
Series 2001-C, Class A4,
4.720% 09/15/08...................... $ 1,675,000 $ 1,731,581
-------------
63,071,361
-------------
COLLATERALIZED MORTGAGE OBLIGATIONS (19.8%)
Bear Stearns Asset-Backed Securities, Inc.:
Series 2002-AC5, Class 2A4,
5.625% 11/25/32...................... 1,643,619 1,670,678
Series 2003-AC2, Class A3,
3.500% 06/25/33 (a).................. 4,842,542 4,758,470
Countrywide Home Loans:
Series 1999-A1, Class A1,
6.750% 03/25/29...................... 240,239 241,044
Series 2002-16, Class 1A1,
6.500% 09/25/32...................... 113,893 113,965
Series 2002-32, Class 2A3,
5.000% 12/25/17...................... 3,414,642 3,453,271
Series 2002-J5, Class 1A1,
5.750% 01/25/33...................... 805,041 814,371
Series 2003-J7, Class 4A2,
1.510% 08/25/18 (a).................. 13,914,035 13,880,201
First Horizon Asset Securities, Inc.:
Series 2002-6, Class 1A1,
6.000% 11/25/32...................... 34,462 34,461
Series 2003-2, Class 2A1,
1.610% 03/25/18 (a).................. 12,050,625 12,104,180
Series 2003-4, Class 2A2,
1.560% 06/25/18 (a).................. 3,523,993 3,523,993
GMAC Mortgage Corporation Loan Trust,
Series 2003-J3, Class A1,
1.610% 05/25/18 (a).................. 7,633,224 7,598,913
IMPAC Secured Assets Common Owner Trust:
Series 2002-2, Class A7,
4.500% 04/25/33...................... 127,953 128,320
Series 2002-3, Class A2,
5.210% 08/25/32 (a).................. 238,951 239,923
Ocwen Residential MBS Corp.,
Series 1998-R1, Class A1,
7.000% 10/25/40 (a)(d)............... 463,738 473,623
PNC Mortgage Securities Corp.:
Series 1996-PR1, Class A,
5.719% 04/28/27 (a).................. 130,520 130,553
Series 1998-12, Class 4A5,
6.475% 01/25/29...................... 65,034 66,366
Series 1998-14, Class 2A1,
6.250% 01/25/14...................... 2,624,975 2,695,126
Residential Accredited Loans, Inc.,
Series 2002-QS9, Class A1,
7.290% 07/25/32 (a).................. 528,492 530,863
Residential Asset Securitization Trust:
Series 2002-A1, Class A4,
5.790% 01/25/30 (a).................. 700,000 713,626
See Accompanying Notes to Financial Statements
108
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
PAR VALUE
- -----------------------------------------------------------------------------
Series 2002-A5, Class A2,
5.820% 01/25/27...................... $ 527,972 $ 528,277
Series 2002-A7, Class A2,
5.180% 01/25/27...................... 1,070,853 1,072,759
Series 2002-A14J, Class A14,
6.000% 01/25/33...................... 2,591,444 2,640,456
Residential Funding Mortgage Securities I, Inc.:
Series 1999-S25, Class A1,
6.750% 12/25/14...................... 380,311 386,641
Series 2000-S2, Class A3,
7.500% 02/25/30...................... 294,499 295,456
Series 2002-S13, Class A5,
6.250% 10/25/32...................... 1,005,684 1,032,657
Series 2002-S15, Class A2,
5.400% 09/25/32...................... 1,006,473 1,023,507
Series 2002-S16, Class A7,
5.500% 10/25/17...................... 4,010,696 4,107,288
Series 2003-S8, Class A1,
5.000% 05/25/18...................... 10,266,647 10,535,140
Series 2003-S14, Class A5,
1.510% 07/25/18 (a).................. 12,740,108 12,708,511
SACO I, Inc.,
Series 1997-2, Class 1A5,
7.000% 08/25/36 (d).................. 1,691,122 1,714,412
Structured Asset Mortgage Investments, Inc.:
Series 2002-17, Class 1A3,
6.000% 09/25/32...................... 2,250,973 2,302,318
Series 2003-14, Class 1A3,
5.500% 05/25/33...................... 844,273 861,671
Washington Mutual Mortgage Securities Corp.:
Series 2002-MS7, Class 1A14,
6.000% 11/25/32...................... 3,127,000 3,167,856
Series 2003-MS5, Class 1A4,
1.610% 03/25/18 (a).................. 6,971,079 6,935,143
Series 2003-S4, Class 1A3,
1.610% 06/25/18 (a).................. 5,153,063 5,122,170
Wells Fargo Mortgage-Backed Securities Trust:
Series 2002-22, Class 2A2,
5.500% 01/25/33...................... 343,130 348,804
Series 2002-D, Class 1A1,
5.500% 08/25/32 (a).................. 782,108 794,921
-------------
108,749,934
-------------
COMMERCIAL MORTGAGE BACKED SECURITIES (0.8%)
GMAC Commercial Mortgage Asset Corp.,
Series 2001-FLAA, Class B1,
1.610% 06/15/13 (a)(d)............... 1,847,411 1,846,328
Merrill Lynch Mortgage Investors, Inc.,
Series 1996-C1, Class A3,
7.420% 04/25/28...................... 371,187 381,384
PAR VALUE
- -----------------------------------------------------------------------------
Nationslink Funding Corp.,
Series 1999-SL, Class A5,
6.888% 11/10/30...................... $ 2,210,000 $ 2,440,701
-------------
4,668,413
-------------
Total Other Securitized Loans
(Cost of $176,750,280)............... 176,489,708
-------------
SHORT-TERM OBLIGATIONS (19.9%)
U.S. TREASURY BILL (2.7%)
1.000% 01/22/04......................... 15,000,000 14,940,417
-------------
REPURCHASE AGREEMENT (17.2%)
Repurchase agreement with State
Street Bank & Trust Co., dated
08/29/03, due 09/02/03 at 0.860%
collateralized by U.S. Treasury
Notes with various maturities to
10/15/06, market value of
$96,128,998 (repurchase
proceeds $94,251,005)................ 94,242,000 94,242,000
-------------
TOTAL SHORT-TERM OBLIGATIONS
(Cost of $109,182,417)............... 109,182,417
-------------
TOTAL INVESTMENTS (102.6%)
(Cost of $562,536,624)(e)............ 563,443,868
-------------
OTHER ASSETS & LIABILITIES, NET (-2.6%)...... (14,267,791)
-------------
NET ASSETS (100.0%).......................... $ 549,176,077
=============
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Interest rates of variable rate securities change periodically. The rate
listed is as of August 31, 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 August 31, 2003, these
securities amounted to $7,291,879 which represents 1.3% of net assets.
(e) Cost for federal income tax purpose is $562,379,602.
COLUMBIA FIXED INCOME SECURITIES FUND
AUGUST 31, 2003
PAR VALUE
- -----------------------------------------------------------------------------
U.S. GOVERNMENT & AGENCY SECURITIES (44.0%)
U.S. TREASURY NOTES & BONDS (11.2%)
U.S. Treasury Bonds:
6.250% 08/15/23...................... $22,410,000 $ 24,882,988
7.250% 05/15/16...................... 9,500,000 11,615,982
See Accompanying Notes to Financial Statements
109
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA FIXED INCOME SECURITIES FUND (CONT.)
AUGUST 31, 2003
PAR VALUE
- -----------------------------------------------------------------------------
U.S. Treasury Inflation Index Note,
3.625% 01/15/08...................... $15,293,188 $ 16,846,410
U.S. Treasury Note,
3.500% 11/15/06...................... 5,000,000 5,133,985
-------------
58,479,365
-------------
FEDERAL HOME LOAN MORTGAGE
CORP. (FHLMC) (8.9%)
4.500% 09/18/18 (a).................. 5,000,000 4,907,810
4.500% 10/20/18 (a).................. 7,290,000 7,130,531
6.000% 05/01/17 - 12/01/32........... 28,311,879 28,891,682
6.500% 11/15/30 - 08/01/32 .......... 5,277,389 5,498,710
-------------
46,428,733
-------------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION (FNMA) (18.2%)
4.500% 09/18/18 (a).................. 55,560,000 54,587,700
5.000% 12/01/17 - 08/01/18........... 31,638,714 31,795,724
6.000% 03/01/09 - 03/01/33........... 6,455,154 6,584,357
6.052% 06/01/32...................... 181,718 190,077
6.149% 07/01/32...................... 1,462,708 1,515,981
6.500% 07/01/32 ..................... 212,881 220,421
-------------
94,894,260
-------------
FEDERAL HOUSING ADMINISTRATION (FHA) (0.7%)
FHA Insured Project:
Pool #067-22003,
8.200% 06/01/31...................... 1,129,567 1,166,447
Pool #071-94016,
8.625% 05/01/23...................... 2,121,755 2,218,743
-------------
3,385,190
-------------
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 2,429,558
FHLMC Multiclass Mtg. Partn. Ctfs. Gtd.:
Series 1558, Class C,
6.500% 07/15/23...................... 1,316,556 1,348,350
Series 1602, Class PJ,
6.500% 10/15/23...................... 510,000 548,224
Series 2085, Class PD,
6.250% 11/15/26...................... 2,992,863 3,040,164
Series 2113, Class MU,
6.500% 08/15/27...................... 1,701,932 1,740,899
Series 2235, Class VN,
7.000% 06/15/14...................... 4,840,000 5,020,655
FNMA Gtd. Remic Pass Thru Ctfs.:
Remic Tr. 1996-W2, Class A7,
7.800% 06/25/26...................... 946,452 1,016,461
PAR VALUE
- -----------------------------------------------------------------------------
Remic Tr. 2001-55, Class PC,
6.500% 10/25/31...................... $ 5,418,000 $ 5,679,401
Remic Tr. 2001-56, Class KD,
6.500% 07/25/30...................... 4,790,000 4,916,587
-------------
25,740,299
-------------
Total U.S. Government & Agency Securities
(Cost of $229,268,736)............... 228,927,847
-------------
CORPORATE NOTES & BONDS (40.8%)
INDUSTRIALS (24.1%)
Abitibi-Consolidated, Inc.:
6.000% 06/20/13...................... 75,000 67,746
7.875% 08/01/09...................... 225,000 232,956
Acetex Corp.:
10.875% 08/01/09..................... 40,000 43,600
10.875% 08/01/09 (b)................. 175,000 191,625
Advance PCS,
8.500% 04/01/08...................... 750,000 791,250
Airgas, Inc.,
9.125% 10/01/11...................... 215,000 236,500
Alcan, Inc.,
7.250% 03/15/31...................... 2,400,000 2,711,650
Allied Waste North America, Inc.,
10.000% 08/01/09..................... 550,000 595,375
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 2,170,932
AmerisourceBergen Corp.,
8.125% 09/01/08...................... 550,000 581,625
Anadarko Finance Co.,
7.500% 05/01/31...................... 2,610,000 3,015,497
Anadarko Petroleum Corp.,
3.250% 05/01/08...................... 1,000,000 968,860
Anheuser-Busch Companies, Inc.:
5.625% 10/01/10...................... 3,000,000 3,230,343
5.750% 04/01/10...................... 530,000 571,566
Anthem, Inc.,
6.800% 08/01/12...................... 1,550,000 1,701,784
Arch Western Finance,
6.750% 07/01/13 (b).................. 305,000 302,712
AT&T Corp.,
8.500% 11/15/31...................... 1,390,000 1,573,625
AT&T Wireless Services, Inc.,
8.750% 03/01/31...................... 2,300,000 2,734,672
Ball Corp.,
7.750% 08/01/06...................... 600,000 643,500
Boeing Co.:
5.125% 02/15/13...................... 335,000 326,912
6.125% 02/15/33...................... 1,475,000 1,392,655
See Accompanying Notes to Financial Statements
110
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
PAR VALUE
- -----------------------------------------------------------------------------
BP Amoco PLC,
5.900% 04/15/09...................... $ 1,800,000 $ 1,965,874
British Sky Broadcasting Group,
7.300% 10/15/06...................... 200,000 218,500
Canadian National Railway Co.,
7.195% 01/02/16...................... 1,906,913 2,141,777
Canandaigua Brands, Inc.,
8.500% 03/01/09...................... 650,000 676,000
Cascades, Inc.,
7.250% 02/15/13 (b).................. 235,000 232,063
Chesapeake Energy Corp.:
7.500% 09/15/13 (b).................. 320,000 324,000
8.125% 04/01/11...................... 25,000 26,125
8.375% 11/01/08...................... 165,000 174,075
9.000% 08/15/12...................... 45,000 48,600
ChevronTexaco Capital Co.,
3.500% 09/17/07...................... 4,160,000 4,186,836
Cinemark USA, Inc.,
9.000% 02/01/13...................... 435,000 463,275
Coca-Cola Enterprises, Inc.,
6.750% 01/15/38...................... 1,000,000 1,066,537
Comcast Corp.,
7.050% 03/15/33...................... 870,000 906,972
Coors Brewing Co.,
6.375% 05/15/12...................... 1,200,000 1,290,145
Corrections Corp. of America:
7.500% 05/01/11...................... 75,000 76,125
7.500% 05/01/11 (b).................. 200,000 203,000
Costco Wholesale Corp.,
5.500% 03/15/07...................... 1,900,000 2,049,722
Cott Beverages, Inc.,
8.000% 12/15/11...................... 570,000 595,650
Cox Communications, Inc.,
7.875% 08/15/09...................... 235,000 272,860
Cox Enterprises, Inc.,
8.000% 02/15/07 (b).................. 2,250,000 2,560,567
CSC Holdings, Inc.:
8.125% 08/15/09...................... 75,000 77,437
9.875% 02/15/13...................... 375,000 391,875
DaimlerChrysler NA Holding Corp.,
8.500% 01/18/31...................... 1,175,000 1,324,835
Deutsche Telekom International
Finance BV,
8.500% 06/15/10...................... 1,390,000 1,638,336
Dex Media East LLC,
12.125% 11/15/12..................... 425,000 513,188
Diageo Capital PLC,
3.375% 03/20/08...................... 2,570,000 2,517,981
DirecTV Holdings,
8.375% 03/15/13 (b).................. 210,000 229,425
PAR VALUE
- -----------------------------------------------------------------------------
Equistar Chemical:
10.125% 09/01/08..................... $ 25,000 $ 25,000
10.625% 05/01/11 (b)................. 25,000 24,875
Ethyl Corp.,
8.875% 05/01/10...................... 50,000 50,500
Extended Stay America, Inc.,
9.875% 06/15/11...................... 500,000 531,250
General Electric Co.,
5.000% 02/01/13...................... 5,375,000 5,306,474
Grant Prideco, Inc.:
9.000% 12/15/09...................... 460,000 484,150
9.625% 12/01/07...................... 40,000 42,600
Harrah's Operating Co., Inc.,
7.875% 12/15/05...................... 250,000 270,000
Hasbro, Inc.,
8.500% 03/15/06...................... 600,000 648,000
Houghton Mifflin Co.,
9.875% 02/01/13 (b).................. 405,000 441,450
International Business Machines Corp.,
5.875% 11/29/32...................... 3,460,000 3,342,599
International Game Technology,
8.375% 05/15/09...................... 250,000 292,704
Iron Mountain, Inc.,
8.625% 04/01/13...................... 1,000,000 1,040,000
ITT Corp.,
6.750% 11/15/05...................... 275,000 286,687
John Deere Capital Corp.,
3.900% 01/15/08...................... 1,400,000 1,403,553
K & F Industries, Inc.,
9.625% 12/15/10...................... 285,000 309,225
KB Home,
8.625% 12/15/08...................... 500,000 525,000
Kennametal, Inc.,
7.200% 06/15/12...................... 115,000 119,108
Key Energy Services, Inc.:
6.375% 05/01/13...................... 170,000 161,500
8.375% 03/01/08...................... 75,000 78,375
Kinder Morgan Energy Partners LP,
6.750% 03/15/11...................... 2,750,000 3,040,752
Kroger Co.,
7.650% 04/15/07...................... 1,450,000 1,630,313
L-3 Communications Corp.,
7.625% 06/15/12...................... 485,000 504,400
Lamar Media Corp.:
7.250% 01/01/13...................... 150,000 155,625
8.625% 09/15/07...................... 250,000 258,125
Lear Corp.,
7.960% 05/15/05...................... 600,000 643,500
LIN Television Corp.,
6.500% 05/15/13 (b).................. 300,000 291,000
See Accompanying Notes to Financial Statements
111
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA FIXED INCOME SECURITIES FUND (CONT.)
AUGUST 31, 2003
PAR VALUE
- -----------------------------------------------------------------------------
Lockheed Martin Corp.,
8.500% 12/01/29...................... $ 2,135,000 $ 2,718,995
Lowe's Companies, Inc.,
6.500% 03/15/29...................... 1,200,000 1,253,642
MacDermid, Inc.,
9.125% 07/15/11...................... 115,000 126,500
Marathon Oil Corp.,
6.800% 03/15/32...................... 2,450,000 2,533,405
Mediacom LLC,
9.500% 01/15/13...................... 200,000 202,000
Newell Rubbermaid, Inc.,
4.000% 05/01/10...................... 2,545,000 2,407,252
Nextel Communications, Inc.:
9.375% 11/15/09...................... 125,000 135,000
9.750% 10/31/07...................... 300,000 309,000
Occidental Petroleum Corp.,
4.250% 03/15/10...................... 1,825,000 1,784,456
Offshore Logistics, Inc.,
6.125% 06/15/13 (b).................. 405,000 384,750
Omnicare, Inc.,
8.125% 03/15/11...................... 275,000 291,500
Owens-Illinois, Inc.,
7.350% 05/15/08...................... 250,000 241,250
Park Place Entertainment Corp.,
9.375% 02/15/07...................... 600,000 657,000
Peabody Energy Corp.,
6.875% 03/15/13...................... 400,000 400,000
Pepsi Bottling Holdings, Inc.,
5.625% 02/17/09 (b).................. 4,050,000 4,342,390
Phillips Petroleum Co.,
8.500% 05/25/05...................... 2,675,000 2,964,253
Pogo Producing Co.,
8.250% 04/15/11...................... 65,000 69,225
Pride International, Inc.,
9.375% 05/01/07...................... 269,000 277,070
Procter & Gamble Co.,
4.750% 06/15/07...................... 1,950,000 2,042,192
R.H. Donnelley Financial Corp.:
8.875% 12/15/10 (b).................. 50,000 54,750
10.875% 12/15/12 (b)................. 360,000 419,400
Rogers Cable, Inc.,
7.875% 05/01/12...................... 470,000 492,913
Scotts Co.,
8.625% 01/15/09...................... 530,000 555,175
Select Medical Corp.,
9.500% 06/15/09...................... 500,000 540,000
Silgan Holdings, Inc.,
9.000% 06/01/09...................... 570,000 589,950
PAR VALUE
- -----------------------------------------------------------------------------
Sinclair Broadcasting Group, Inc.,
8.000% 03/15/12 ..................... $ 440,000 $ 458,700
Smurfit-Stone Container Corp.:
8.250% 10/01/12...................... 130,000 134,550
9.750% 02/01/11...................... 455,000 493,675
Speedway Motorsports, Inc.,
6.750% 06/01/13 (b).................. 200,000 198,000
Station Casinos, Inc.:
8.875% 12/01/08...................... 75,000 78,188
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 1,933,643
TD Funding Corp.,
8.375% 07/15/11 (b).................. 300,000 313,500
Teekay Shipping Corp.,
8.875% 07/15/11...................... 775,000 841,844
Time Warner, Inc.,
7.975% 08/15/04...................... 1,950,000 2,047,792
Toll Corp.,
7.750% 09/15/07...................... 600,000 615,000
Triad Hospitals, Inc.,
8.750% 05/01/09...................... 600,000 639,000
Union Pacific Corp.,
3.875% 02/15/09...................... 2,340,000 2,281,619
United Rentals, Inc.,
10.750% 04/15/08..................... 500,000 550,000
United Technologies Corp.,
7.125% 11/15/10...................... 4,125,000 4,709,583
Universal Compression, Inc.,
7.250% 05/15/10 (b).................. 75,000 75,750
Verizon Global Funding Corp.,
7.250% 12/01/10...................... 2,175,000 2,468,471
Viacom, Inc.,
5.500% 05/15/33...................... 1,100,000 983,015
Vintage Petroleum, Inc.,
9.750% 06/30/09...................... 245,000 259,700
Wabtec Corp.,
6.875% 07/31/13 (b).................. 140,000 138,600
Wal-Mart Stores, Inc.,
4.375% 07/12/07...................... 2,350,000 2,442,357
WellPoint Health Networks, Inc.,
6.375% 06/15/06...................... 2,365,000 2,578,117
Westport Resources Corp.,
8.250% 11/01/11...................... 610,000 652,700
XTO Energy, Inc.,
7.500% 04/15/12...................... 600,000 645,000
Yum! Brands, Inc.,
8.500% 04/15/06...................... 500,000 546,250
-------------
125,316,677
-------------
See Accompanying Notes to Financial Statements
112
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
PAR VALUE
- -----------------------------------------------------------------------------
FINANCIALS (11.8%)
American General Finance Corp.,
5.375% 09/01/09...................... $ 850,000 $ 890,099
Bank of America Corp.:
5.875% 02/15/09...................... 1,355,000 1,462,076
7.800% 02/15/10...................... 2,700,000 3,168,720
Bank One Corp.,
2.625% 06/30/08...................... 2,800,000 2,632,188
CIT Group, Inc.,
7.250% 08/15/05...................... 970,000 1,052,135
Citigroup, Inc.,
7.250% 10/01/10...................... 2,350,000 2,694,785
Equitable Companies, Inc.,
9.000% 12/15/04...................... 2,475,000 2,676,044
Ford Motor Credit Co.,
7.375% 10/28/09...................... 5,700,000 5,892,181
General Electric Capital Corp.,
6.750% 03/15/32...................... 665,000 713,172
General Motors Acceptance Corp.,
4.500% 07/15/06...................... 2,615,000 2,621,914
Goldman Sachs Group, Inc.,
6.125% 02/15/33...................... 1,525,000 1,481,510
Health Care Property Investors, Inc.,
6.450% 06/25/12...................... 2,390,000 2,473,029
Health Care REIT, Inc.,
7.500% 08/15/07...................... 500,000 537,405
Household Finance Corp.,
6.400% 06/17/08...................... 2,550,000 2,787,571
iStar Financial, Inc.,
7.000% 03/15/08...................... 200,000 204,500
J.P. Morgan Chase & Co.,
5.750% 01/02/13...................... 2,545,000 2,619,645
Lehman Brothers Holdings, Inc.,
4.000% 01/22/08...................... 2,800,000 2,807,174
Merrill Lynch & Co., Inc.,
2.470% 03/10/06...................... 3,000,000 2,977,080
Morgan Stanley:
4.250% 05/15/10...................... 955,000 928,617
6.100% 04/15/06...................... 1,650,000 1,783,223
SLM Corp.,
5.125% 08/27/12...................... 3,900,000 3,877,852
US Bank NA,
6.375% 08/01/11...................... 4,000,000 4,387,896
Wachovia Corp.,
3.500% 08/15/08...................... 3,660,000 3,573,254
Washington Mutual, Inc.,
5.625% 01/15/07...................... 2,505,000 2,683,804
Wells Fargo & Co.,
4.875% 06/12/07...................... 4,175,000 4,411,000
-------------
61,336,874
-------------
PAR VALUE
- -----------------------------------------------------------------------------
UTILITIES (2.1%)
Dominion Resources, Inc.,
2.800% 02/15/05...................... $ 2,750,000 $ 2,761,281
FPL Group Capital, Inc.,
6.125% 05/15/07...................... 3,525,000 3,841,795
Progress Energy, Inc.,
7.750% 03/01/31...................... 1,215,000 1,345,186
Southern Power Co.,
6.250% 07/15/12...................... 3,000,000 3,180,504
-------------
11,128,766
-------------
INTERNATIONAL (2.8%)
British Columbia Province,
5.375% 10/29/08...................... 1,900,000 2,031,866
Hydro-Quebec,
6.970% 03/01/05...................... 1,000,000 1,075,766
Ontario Province:
3.500% 09/17/07...................... 3,825,000 3,822,820
7.000% 01/30/07...................... 2,490,000 2,794,442
Republic of Italy,
2.500% 03/31/06...................... 2,750,000 2,749,838
United Mexican States,
8.000% 09/24/22...................... 2,105,000 2,204,987
-------------
14,679,719
-------------
Total Corporate Notes & Bonds
(Cost of $205,480,476)............... 212,462,036
-------------
OTHER SECURITIZED LOANS (13.8%)
ASSET-BACKED SECURITIES (7.3%)
Cityscape Home Equity Loan Trust,
Series 1997-4, Class A4,
7.440% 10/25/18...................... 941,360 974,713
ContiMortgage Home Equity Loan Trust,
Series 1999-3, Class A6,
7.680% 12/25/29...................... 2,700,000 2,855,557
IMC Home Equity Loan Trust:
Series 1995-3, Class A5,
7.500% 04/25/26...................... 1,980,000 1,980,132
Series 1997-3, Class A6,
7.520% 08/20/28...................... 2,310,710 2,377,747
Series 1997-5, Class A9,
7.310% 11/20/28...................... 5,786,391 6,048,039
Merit Securities Corp.,
Series 13, Class A4,
7.880% 12/28/33...................... 5,265,000 5,092,464
Nationslink Funding Corp.,
Series 1999-SL, Class A5,
6.888% 05/10/07...................... 3,120,000 3,445,696
New Century Home Equity Loan Trust,
Series 1999-NCA, Class A7,
7.320% 07/25/29...................... 1,471,459 1,551,359
See Accompanying Notes to Financial Statements
113
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA FIXED INCOME SECURITIES FUND (CONT.)
AUGUST 31, 2003
PAR VALUE
- -----------------------------------------------------------------------------
Oakwood Mortgage Investors, Inc.,
Series 2000-D, Class A4,
7.400% 07/15/30...................... $ 6,395,000 $ 5,862,900
Salomon Brothers Mortgage
Securities VII, Inc.,
Series 1998-AQ1, Class A5,
7.150% 06/25/28...................... 1,960,000 2,060,210
SLM Student Loan Trust,
Series 1997-4, Class A2,
1.645% 10/25/10 (c).................. 5,807,134 5,883,503
-------------
38,132,320
-------------
COLLATERALIZED MORTGAGE OBLIGATIONS (5.9%)
Bear Stearns Asset-Backed Securities, Inc.,
Series 2002-AC5, Class 2A4,
5.625% 11/25/33...................... 3,188,621 3,241,116
Bear Stearns Mortgage Securities, Inc.,
Series 1996-2, Class A1,
4.090% 01/28/25 (c).................. 764,340 752,048
Countrywide Home Loans, Inc.:
Series 2002-5, Class 2A1,
6.000% 04/25/17...................... 2,376,207 2,420,024
Series 2002-16, Class 1A1,
6.500% 09/25/32...................... 425,623 425,895
Series 2003-49, Class A9,
4.648% 12/19/33...................... 4,770,000 4,704,413
Credit Suisse First Boston
Mortgage Securities Corp.,
Series 2001-11, Class 1A3,
7.000% 06/25/31...................... 578,668 595,455
IMPAC Secured Assets Common
Owner Trust,
Series 2002-3, Class A2,
5.210% 08/25/32...................... 1,115,103 1,119,639
PNC Mortgage Securities Corp.,
Series 1998-12, Class 4A4,
6.500% 01/25/29...................... 353,623 357,425
Residential Asset Securitization Trust:
Series 2002-A1, Class A4,
6.590% 01/25/30 (c).................. 5,098,000 5,197,235
Series 2002-A5, Class A2,
5.820% 01/25/27...................... 348,531 348,733
Series 2002-A7, Class A2,
5.180% 01/25/27...................... 2,560,869 2,565,426
Residential Funding Mortgage Securities I:
Series 2002-S15, Class A2,
5.400% 09/25/23...................... 469,352 477,296
PAR VALUE
- -----------------------------------------------------------------------------
Series 2002-S16, Class A7,
5.500% 10/25/17...................... $ 3,149,886 $ 3,225,747
Series 2003-S8, Class A1,
5.000% 05/25/18 (a).................. 4,705,547 4,828,606
Structured Asset Securities Corp.,
Series 2001-12, Class 1A4,
5.800% 09/25/31...................... 300,412 303,553
-------------
30,562,611
-------------
COMMERCIAL MORTGAGE-BACKED SECURITIES (0.6%)
GMAC Commercial Mortgage Asset Corp.,
Series 2001-FLAA, Class B1,
1.610% 06/15/13 (b)(c)............... 2,906,136 2,904,432
-------------
Total Other Securitized Loans
(Cost of $71,231,301)................ 71,599,363
-------------
SHORT-TERM OBLIGATIONS (11.9%)
U.S. TREASURY BILL (1.5%)
1.000% 01/22/04...................... 8,000,000 7,968,222
-------------
REPURCHASE AGREEMENT (10.4%)
Repurchase agreement with State
Street Bank & Trust Co., dated
08/29/03, due 09/02/03 at 0.860%,
collateralized by a U.S. Treasury
Note maturing 08/15/07, market
value of $55,391,219 (repurchase
proceeds $54,308,189)................ 54,303,000 54,303,000
-------------
Total Short-Term Obligations
(Cost of $62,271,222)................ 62,271,222
-------------
TOTAL INVESTMENTS (110.5%)
(Cost of $568,251,735) (d)........... 575,260,468
-------------
OTHER ASSETS & LIABILITIES, NET (-10.5%)..... (54,669,871)
-------------
NET ASSETS (100.0%).......................... $ 520,590,597
=============
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 August 31, 2003, the value of
these securities amounted to $13,632,289, which represents 2.6% of net
assets.
(c) Variable rate security. The rate reported is the rate in effect at August
31, 2003.
(d) Cost for federal income tax purposes is $569,291,420.
See Accompanying Notes to Financial Statements
114
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA NATIONAL MUNICIPAL BOND FUND
AUGUST 31, 2003
PAR VALUE
- -----------------------------------------------------------------------------
MUNICIPAL BONDS (99.4%)
ALASKA (3.0%)
Industrial Development & Export Authority,
Snettisham Hydroelectric, Series 1:
Pre-refunded,
5.500% 01/01/08...................... $ 5,000 $ 5,555
Unrefunded,
5.500% 01/01/08...................... 95,000 104,484
Municipal Bond Bank Authority, Series C,
5.500% 09/15/16...................... 100,000 107,780
Palmer Valley Hospital Association,
5.350% 12/01/12...................... 125,000 130,163
State Housing Finance Corp.,
Veterans Mortgage, Series A2,
6.000% 06/01/15...................... 115,000 120,839
-------------
468,821
-------------
ARKANSAS (1.6%)
Little Rock Waste Disposal Revenue,
Series 2002,
5.000% 05/01/16...................... 250,000 257,958
-------------
CALIFORNIA (1.6%)
State Department of Water Resource,
Power Supply Revenue, Series 2002,
5.000% 05/01/16...................... 250,000 259,177
-------------
COLORADO (0.2%)
Housing Finance Authority, Single Family,
4.875% 04/01/07...................... 35,000 36,316
-------------
IDAHO (1.5%)
Boise City Housing Authority Revenue,
Hobler Place Project, Series 2002,
4.750% 02/01/07...................... 130,000 130,161
Health Facilities Authority,
Bingham Memorial Hospital Project,
5.850% 03/01/19...................... 100,000 96,780
Student Loan Fund Marketing
Association, Series C,
5.600% 04/01/07...................... 10,000 10,211
-------------
237,152
-------------
ILLINOIS (12.3%)
Broadview Tax Increment Revenue,
4.900% 07/01/06...................... 75,000 76,001
Chicago Housing Authority Capital,
Series 2001,
5.375% 07/01/19...................... 250,000 257,145
PAR VALUE
- -----------------------------------------------------------------------------
Chicago Motor Fuel Tax Revenue,
Series 2003 A,
5.250% 01/01/17...................... $ 250,000 $ 263,412
Chicago Park District Aquarium
& Museum,
5.800% 01/01/18...................... 150,000 161,889
Chicago Public Building Community
Building Revenue, Chicago School
Reform, Series 1999 B,
5.250% 12/01/16...................... 250,000 272,138
Lake County Community Unified School
District No. 095, Lake Zurich,
Capital Appreciation, Series 2000,
(a) 12/01/17......................... 340,000 165,764
Madison & St. Clair Counties School,
District No. 010, Collinsville
School Building,
5.500% 02/01/12...................... 250,000 274,525
Regional Transportation Authority,
Series A,
6.400% 06/01/12...................... 100,000 117,506
State Educational Facilities Authority,
DePaul University, Series 2003 C,
5.000% 09/01/18...................... 250,000 254,102
Will County Forest Preservation District,
Series 1999 B,
(a) 12/01/11......................... 150,000 105,024
-------------
1,947,506
-------------
INDIANA (4.0%)
Board Bank Revenue,
Special Program, Hendricks,
Series 2002 D,
5.375% 04/01/15...................... 250,000 269,528
Transportation Financial Authority,
Airport Facilities, Series A,
5.500% 11/01/17...................... 100,000 105,522
West Lafayette Industrial Building Corp.,
First Mortgage, Police Station Project,
5.000% 07/15/18...................... 250,000 256,702
-------------
631,752
-------------
IOWA (2.7%)
Finance Authority:
Health Care Facilities Revenue,
Genesis Medical Center,
6.100% 07/01/15...................... 285,000 315,754
Single Family Mortgage,
Series A,
5.800% 07/01/16...................... 105,000 108,826
-------------
424,580
-------------
See Accompanying Notes to Financial Statements
115
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA NATIONAL MUNICIPAL BOND FUND (CONT.)
AUGUST 31, 2003
PAR VALUE
- -----------------------------------------------------------------------------
KENTUCKY (0.5%)
Louisville & Jefferson County Visitors
& Convention Commission,
Series 1999 BBB,
(a) 12/01/08......................... $ 100,000 $ 78,965
-------------
LOUISIANA (3.5%)
Calcasieu Parish School District No. 31,
Public School Import, Series 2000,
5.500% 05/01/16...................... 250,000 269,282
State Gas & Fuel Tax Revenue,
Series 2002 A,
5.250% 06/01/11...................... 250,000 275,020
-------------
544,302
-------------
MAINE (0.7%)
Regional Waste System Industry Solid
Waste Resource Recovery, Series Q,
5.500% 07/01/04...................... 100,000 103,425
-------------
MICHIGAN (4.8%)
State Hospital Finance Authority,
Ascension Health Credit, Series A:
5.375% 11/15/33...................... 100,000 110,797
6.000% 11/15/19...................... 100,000 117,305
Sturgis Public School District,
School Building & Site,
5.500% 05/01/14...................... 250,000 272,320
Warren Downtown Development,
Series 2002,
5.000% 10/01/16...................... 250,000 262,405
-------------
762,827
-------------
MISSISSIPPI (2.4%)
Development Bank,
Convention Center Project,
6.500% 07/01/13...................... 230,000 272,331
Jones County Hospital,
Refunding South Central
Regional Medical Center,
4.900% 12/01/04...................... 100,000 103,398
-------------
375,729
-------------
MONTANA (1.4%)
Whitefish Tax Increment,
Urban Renewal Revenue,
6.625% 07/15/20...................... 200,000 213,854
-------------
NEVADA (1.7%)
State, Colorado River Commission,
Hoover Dam Project, Series 2002,
5.375% 10/01/14...................... 250,000 271,065
-------------
PAR VALUE
- -----------------------------------------------------------------------------
NEW YORK (3.5%)
New York City,
AMBAC TCRS:
Series 2000,
5.750% 08/01/11...................... $ 250,000 $ 278,882
Series A,
6.000% 05/15/21...................... 250,000 268,495
-------------
547,377
-------------
NORTH DAKOTA (1.7%)
Fargo School District Building Authority
Development, Series 2000,
5.500% 05/01/13...................... 250,000 270,600
-------------
OHIO (2.5%)
Oak Hills Local School District,
7.200% 12/01/09...................... 100,000 122,021
State Water Development Authority
Revenue, Fresh Water,
Series 2001 B,
5.500% 12/01/18...................... 250,000 279,087
-------------
401,108
-------------
OKLAHOMA (1.4%)
Okmulgee County,
1st Mortgage,
6.000% 03/01/15...................... 200,000 223,166
-------------
OREGON (14.2%)
Bend Municipal Airport Project,
Series B,
5.375% 06/01/13...................... 100,000 106,280
Benton County Hospital
Facilities Authority Refunding,
Samaritan Health Services Project:
4.200% 10/01/05...................... 40,000 41,879
4.600% 10/01/09...................... 40,000 41,975
Clackamas County:
Hospital Facility Authority,
Gross-Willamette Falls
Hospital Project,
5.500% 04/01/22...................... 250,000 262,578
Limited Tax Assessment,
6.250% 05/01/15...................... 200,000 200,768
Damascus Water District,
Certificates of Participation,
5.250% 03/01/19...................... 100,000 101,957
Deschutes County Hospital Facilities
Authority, Cascade Health Services,
Inc., Series 2002,
5.600% 01/01/27...................... 100,000 101,471
Eugene Trojan Nuclear Project,
5.900% 09/01/09...................... 30,000 30,080
See Accompanying Notes to Financial Statements
116
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
PAR VALUE
- -----------------------------------------------------------------------------
Health Sciences University,
Capital Appreciation, Series 1996 A,
(a) 07/01/16......................... $ 100,000 $ 54,369
Hillsboro Hospital Facility Authority
Refunding, Tuality Healthcare,
5.250% 10/01/04...................... 100,000 103,134
Klamath Community College District:
4.700% 04/01/10...................... 55,000 57,791
4.800% 04/01/11...................... 25,000 26,056
Lebanon Urban Renewal Agency,
5.625% 06/01/19...................... 100,000 102,802
Port of St. Helens Pollution
Control, Portland General
Electric Co., Series B,
4.800% 06/01/10...................... 105,000 90,082
Redmond Urban Renewal
Agency, Downtown Area B,
5.650% 06/01/13...................... 100,000 102,349
Salem Hospital Facilities Authority,
Capital Manor, Inc., Series 1994,
7.500% 12/01/24...................... 150,000 158,087
School Boards Association,
Flexfund Financing Program, Series E,
5.500% 06/01/05...................... 100,000 100,166
State Housing & Community
Services Department, Single Family
Mortgage Program, Series B,
6.000% 07/01/12...................... 30,000 31,418
State Veterans Welfare,
Series 75,
5.875% 10/01/18...................... 20,000 20,674
Sunriver Library County Service District,
5.750% 06/01/04...................... 20,000 20,668
Washington & Clackamas Counties
School District No. 23J Tigard,
Series 2000,
(a) 06/15/21......................... 300,000 116,148
Washington County Housing Authority:
Affordable Housing Pool, Series A,
6.000% 07/01/20...................... 100,000 96,303
Multi-Family Tualatin Meadows,
5.900% 11/01/18...................... 100,000 104,336
West Linn Oregon Water System,
6.000% 10/01/20...................... 165,000 172,219
-------------
2,243,590
-------------
SOUTH CAROLINA (1.3%)
Charleston County School District,
Series 2001,
5.000% 02/01/18...................... 200,000 207,104
-------------
PAR VALUE
- -----------------------------------------------------------------------------
SOUTH DAKOTA (1.0%)
State Building Authority,
Lease Capital Appreciation,
Series 1996 A,
(a) 12/01/13......................... $ 250,000 $ 157,070
-------------
TENNESSEE (4.0%)
Lawrenceburg Public Building Authority,
Electric System Public Works,
Series C,
5.500% 07/01/16...................... 295,000 318,128
Metropolitan Government Nashville,
Series 2002 A,
5.125% 10/01/13...................... 285,000 307,258
-------------
625,386
-------------
TEXAS (9.0%)
Amarillo Health Facilities Corp.,
Baptist St. Anthony's Hospital Corp.,
5.500% 01/01/13...................... 100,000 108,927
Cleburne Capital Appreciation
Certificates of Obligation,
Series 1998,
(a) 02/15/17......................... 450,000 219,861
Harris County Health Facilities,
de Teco Project, Series 1999 B,
5.700% 02/15/15...................... 150,000 163,689
Laredo Sports Venue Sales Tax,
5.750% 03/15/13...................... 200,000 220,188
Lubbock Health Facility Development,
St. Joseph's Health System,
5.250% 07/01/12...................... 150,000 155,722
Magnolia Independent School District,
5.250% 08/15/17...................... 280,000 295,845
North Texas Municipal Water District,
Texas Water System Revenue,
5.000% 09/01/14...................... 250,000 262,452
-------------
1,426,684
-------------
WASHINGTON (14.5%)
Grant County Public Hospital,
District No. 3,
Columbia Basin Hospital,
5.250% 12/01/18...................... 170,000 170,925
Jefferson County,
Public Utility District No. 1,
Water & Sewer:
5.250% 05/01/16...................... 50,000 51,412
5.250% 05/01/17...................... 50,000 51,162
King County Public Hospital District
No. 4, Snoqualmie Valley Hospital,
7.000% 12/01/11...................... 150,000 157,325
See Accompanying Notes to Financial Statements
117
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA NATIONAL MUNICIPAL BOND FUND (CONT.)
AUGUST 31, 2003
PAR VALUE
- -----------------------------------------------------------------------------
Pierce County Housing Authority,
5.400% 12/01/13...................... $ 100,000 $ 97,009
Port of Grays Harbor,
6.375% 12/01/14...................... 150,000 164,614
Seattle Municipal Light & Power:
5.000% 07/01/13...................... 235,000 246,797
6.000% 10/01/16...................... 150,000 167,973
Shelton Water & Sewer,
5.250% 12/01/18...................... 50,000 51,409
State Certificates of
Participation, Department of
General Administration,
5.400% 07/01/13...................... 100,000 105,589
State Health Care Facilities Authority
Revenue, Grays Harbor Community
Hospital, Series 1996,
5.700% 07/01/16...................... 200,000 212,950
State Public Power Supply System:
Nuclear Project No. 1 Revenue,
Series 1997 B,
5.125% 07/01/14...................... 300,000 313,185
Nuclear Project No. 2 Refunding,
Series A,
5.000% 07/01/11...................... 50,000 53,094
Nuclear Project No. 3 Revenue,
Capital Appreciation,
Series 1989 B,
(a) 07/01/12......................... 145,000 96,134
Tacoma Solid Waste Utilities:
Pre-refunded, Series 1997 B,
6.000% 12/01/09...................... 15,000 17,488
Unrefunded, Series 1997 B,
6.000% 12/01/09...................... 85,000 98,518
Thurston County School
District No. 401, Rochester,
4.800% 12/01/07...................... 55,000 55,292
Toppenish,
4.600% 12/01/06...................... 65,000 69,768
University of Washington Educational
Research Properties Lease,
4225 Roosevelt Project, Series A,
5.375% 06/01/29...................... 100,000 94,988
Yakima County
School District No. 119 Selah,
5.000% 12/01/06...................... 10,000 10,950
-------------
2,286,582
-------------
PAR VALUE
- -----------------------------------------------------------------------------
WISCONSIN (3.7%)
Door County, Corporate Purpose,
Series 2002 A,
5.000% 09/01/13...................... $ 300,000 $ 317,655
Marshall School District,
Series 2002 A,
5.000% 03/01/14...................... 250,000 263,300
-------------
580,955
-------------
WYOMING (0.7%)
Municipal Power Agency,
Power Supply Refunding, Series 1998,
5.250% 01/01/11...................... 100,000 107,619
-------------
Total Municipal Bonds
(Cost of $15,266,214)................ 15,690,670
-------------
TOTAL INVESTMENTS (99.4%)
(Cost of $15,266,214) (b)............ 15,690,670
-------------
OTHER ASSETS & LIABILITIES, NET (0.6%)....... 92,872
-------------
NET ASSETS (100.0%).......................... $ 15,783,542
=============
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Zero coupon bond.
(b) Cost for federal income tax purposes is $15,262,266.
Columbia National Municipal Bond Fund holds investments that are insured
by private insurers who guarantee the payment of principal and interest in
the event of default. At August 31, 2003, investments in these securities
represented 61.8% of holdings.
ACRONYM NAME
------- ----
AMBAC American Municipal Bond Assurance Corp.
TCRS Transferable Custodial Receipts
COLUMBIA OREGON MUNICIPAL BOND FUND
AUGUST 31, 2003
PAR VALUE
- -----------------------------------------------------------------------------
GENERAL OBLIGATION BONDS (37.6%)
STATE OF OREGON GENERAL OBLIGATIONS (5.1%)
Board of Higher Education:
4.875% 08/01/19...................... $ 1,000,000 $ 1,016,010
Series A:
5.250% 08/01/14...................... 1,480,000 1,587,922
5.250% 08/01/16...................... 5,330,000 5,663,232
Deferred Interest, Series A:
(a) 08/01/14......................... 490,000 297,430
(a) 08/01/17......................... 1,050,000 532,035
See Accompanying Notes to Financial Statements
118
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
PAR VALUE
- -----------------------------------------------------------------------------
Elderly & Disabled Housing Refunding,
Series B:
4.950% 08/01/20...................... $ 1,000,000 $ 1,011,700
6.250% 08/01/13...................... 55,000 55,632
State of Oregon, Series A,
5.250% 10/15/15...................... 1,735,000 1,868,161
Veteran's Welfare:
5.850% 10/01/15...................... 635,000 661,683
7.300% 07/01/08...................... 1,170,000 1,406,317
8.000% 01/01/08...................... 1,275,000 1,541,628
8.000% 07/01/08...................... 580,000 714,479
9.200% 04/01/07...................... 2,390,000 2,934,299
9.200% 10/01/08...................... 385,000 499,260
Series 80 A,
5.700% 10/01/32...................... 5,000,000 5,094,950
-------------
24,884,738
-------------
GENERAL OBLIGATIONS (18.6%)
Aurora,
5.600% 06/01/24...................... 1,205,000 1,222,870
Bend Municipal Airport Project,
Series B (AMT),
5.375% 06/01/13...................... 150,000 159,420
Canyonville South Umpqua Rural
Fire District,
5.400% 07/01/31...................... 610,000 615,386
Clackamas County:
Lake Oswego Series:
5.375% 06/01/15...................... 2,450,000 2,633,676
5.375% 06/01/16...................... 1,295,000 1,382,387
5.375% 06/01/17...................... 2,535,000 2,702,614
School District No. 62C,
5.375% 06/15/17...................... 4,000,000 4,255,000
School District No. 086,
6.000% 06/15/16...................... 2,350,000 2,639,943
School District No. 108,
5.375% 06/15/15...................... 1,055,000 1,140,255
Clackamas & Washington Counties,
School District No. 003JT,
(a) 06/15/17......................... 6,000,000 2,950,740
Coos Bay,
4.900% 09/01/07...................... 2,390,000 2,605,674
Crook County School District,
5.000% 02/01/14...................... 2,860,000 3,031,571
Eugene Public Safety Facilities:
5.500% 06/01/10...................... 850,000 913,614
5.625% 06/01/13...................... 1,295,000 1,392,967
Jackson County:
School District No. 4, Phoenix-Talent,
5.500% 06/15/16...................... 1,000,000 1,078,010
PAR VALUE
- -----------------------------------------------------------------------------
School District No. 6, Central Point,
6.000% 06/15/09...................... $ 1,090,000 $ 1,254,067
School District No. 9, Eagle Point,
5.625% 06/15/15...................... 1,920,000 2,100,134
Lane County, School District No. 4J
Eugene, Refunding:
5.000% 07/01/12...................... 2,470,000 2,665,525
5.250% 07/01/13...................... 1,000,000 1,098,570
Metro Washington Park Zoo, Series A,
5.300% 01/15/11...................... 1,000,000 1,072,700
Multnomah-Clackamas Counties,
School District No. 10JT, Gresham,
5.250% 06/01/17...................... 1,620,000 1,664,356
Multnomah County, Series A,
5.500% 04/01/19...................... 2,395,000 2,540,927
Portland Community College District,
Series A:
5.375% 06/01/14...................... 1,925,000 2,081,214
5.375% 06/01/16...................... 2,705,000 2,904,088
5.375% 06/01/17...................... 2,540,000 2,709,672
Portland Limited Tax:
Series A:
3.400% 06/01/13...................... 5,640,000 5,260,372
4.900% 04/01/12...................... 1,430,000 1,495,494
5.750% 06/01/14...................... 700,000 714,707
Series B:
(a) 06/01/12......................... 1,750,000 1,194,008
(a) 06/01/13......................... 1,500,000 968,610
(a) 06/01/14......................... 1,000,000 611,640
(a) 06/01/16......................... 3,500,000 1,910,475
(a) 06/01/18......................... 4,000,000 1,929,240
(a) 06/01/19......................... 4,000,000 1,810,960
(a) 06/01/20......................... 4,000,000 1,685,840
Portland Parks, Series A, Refunding,
5.000% 06/01/15...................... 3,950,000 4,126,328
Salem-Keizer School District No. 24J,
5.000% 06/01/19...................... 3,500,000 3,599,120
Washington & Clackamas Counties:
Deferred Interest, Series A,
(a) 06/01/10......................... 1,520,000 1,161,918
School District No. 23J, Tigard,
(a) 06/15/18......................... 2,700,000 1,286,658
Washington County:
5.500% 06/01/16...................... 2,785,000 2,991,814
Criminal Justice Facilities, Refunding,
5.000% 12/01/10...................... 1,400,000 1,511,832
School District No. 48J, Beaverton:
5.125% 01/01/14...................... 2,000,000 2,113,000
5.125% 01/01/17...................... 1,820,000 1,889,069
5.125% 01/01/18...................... 2,260,000 2,330,105
See Accompanying Notes to Financial Statements
119
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA OREGON MUNICIPAL BOND FUND (CONT.)
AUGUST 31, 2003
PAR VALUE
- -----------------------------------------------------------------------------
Washington, Multnomah & Yamhill
Counties School District No. 1J:
5.000% 06/01/13...................... $ 1,500,000 $ 1,596,030
5.000% 11/01/13...................... 1,375,000 1,489,455
5.250% 06/01/14...................... 500,000 536,695
-------------
91,028,750
-------------
INSURED GENERAL OBLIGATIONS (13.9%)
Benton & Linn Counties School
District No. 509J, Corvallis,
5.000% 06/01/17...................... 2,665,000 2,782,766
Clackamas Community College:
5.250% 06/15/15...................... 1,500,000 1,608,855
5.250% 06/15/18...................... 1,560,000 1,638,218
Clackamas County, School District
No. 12, North Clackamas:
5.250% 06/01/11...................... 1,000,000 1,079,280
5.250% 06/01/15...................... 2,750,000 2,902,405
Columbia County, School District
No. 502, Deferred Interest:
(a) 06/01/12......................... 1,530,000 1,044,806
(a) 06/01/13......................... 1,685,000 1,094,323
(a) 06/01/14......................... 1,025,000 629,576
Coos County, School District No. 13,
North Bend,
5.500% 06/15/15...................... 1,765,000 1,939,241
Deschutes County, School District
No. 1, Series A,
5.500% 06/15/18...................... 1,000,000 1,065,740
Jefferson County, School District
No. 509J, Madras School District,
5.250% 06/15/18...................... 1,075,000 1,134,727
Josephine County, School District
No. 7, Grants Pass,
5.700% 06/01/13...................... 2,000,000 2,185,220
Lane County, School District No. 19,
Springfield Refunding:
6.000% 10/15/12...................... 1,740,000 2,020,105
6.000% 10/15/14...................... 1,310,000 1,518,513
Lincoln County School District,
5.600% 06/15/10...................... 3,480,000 3,874,180
Linn Benton Community College:
(a) 06/15/13......................... 1,000,000 648,340
(a) 06/15/14......................... 1,000,000 611,850
Linn County, Community School
District No. 9, Lebanon:
(a) 06/15/15......................... 710,000 738,563
(a) 06/15/21......................... 2,000,000 2,033,280
PAR VALUE
- -----------------------------------------------------------------------------
Marion County, School District
No. 103C, Woodburn, Series B:
(a) 11/01/09......................... $ 2,500,000 $ 2,012,225
(a) 11/01/11......................... 2,210,000 1,579,222
Multnomah-Clackamas Counties,
Centennial School District
No. 28-302:
5.375% 06/15/16...................... 2,055,000 2,208,324
5.375% 06/15/17...................... 2,280,000 2,434,516
5.375% 06/15/18...................... 2,490,000 2,643,508
Multnomah County:
School District No. 7, Reynolds:
5.000% 06/15/18...................... 1,000,000 1,024,590
5.625% 06/15/14...................... 2,670,000 2,926,080
5.625% 06/15/17...................... 1,000,000 1,086,200
School District No. 40,
5.000% 12/01/14...................... 1,790,000 1,884,261
Series A MBIA-IBC (AMT),
5.500% 04/01/18...................... 2,010,000 2,144,288
Northern Oregon Corrections:
5.250% 09/15/12...................... 1,000,000 1,068,650
5.300% 09/15/13...................... 1,000,000 1,067,410
Salem-Keizer School District No. 24J:
5.000% 06/01/15...................... 1,000,000 1,044,840
5.000% 06/01/16...................... 1,380,000 1,436,138
Washington & Clackamas Counties,
School District No. 23J, Tigard,
5.375% 06/15/17...................... 1,500,000 1,612,635
Washington County:
School District No. 15, Forest Grove:
5.250% 06/01/10...................... 1,000,000 1,109,320
5.375% 06/15/13...................... 2,070,000 2,254,541
5.375% 06/15/15...................... 2,515,000 2,726,964
School District No. 48J, Beaverton:
5.100% 06/01/12...................... 500,000 528,890
5.250% 08/01/10...................... 1,150,000 1,247,210
School District No. 088J, Sherwood,
Unrefunded,
6.100% 06/01/12...................... 185,000 200,272
Yamhill County:
School District No. 029J,
5.250% 06/15/16...................... 2,535,000 2,711,994
School District No. 40,
6.000% 06/01/09...................... 500,000 576,785
-------------
68,078,851
-------------
Total General Obligation Bonds
(Cost of $179,365,384)............... 183,992,339
-------------
See Accompanying Notes to Financial Statements
120
SCHEDULE OF INVESTMENTS
- -----------------------------------------------------------------------------
PAR VALUE
- -----------------------------------------------------------------------------
REVENUE BONDS (55.1%)
OREGON REVENUE (35.0%)
Albany Hospital Facility Authority,
Mennonite Home,
5.625% 10/01/17...................... $ 635,000 $ 613,302
Benton County Hospital Facilities
Authority, Samaritan Health
Services Project, Refunding:
4.400% 10/01/07...................... 220,000 231,350
4.800% 10/01/11...................... 245,000 256,689
5.200% 10/01/17...................... 2,255,000 2,287,968
Clackamas County Hospital
Facility Authority:
Kaiser Permanente, Series A,
5.375% 04/01/14...................... 7,135,000 7,462,996
Legacy Health System:
4.600% 05/01/10...................... 885,000 925,648
5.000% 02/15/15...................... 1,510,000 1,552,099
5.000% 02/15/16...................... 1,010,000 1,028,018
5.500% 02/15/13...................... 5,450,000 5,848,231
5.500% 02/15/14...................... 2,385,000 2,534,659
5.750% 05/01/12...................... 2,000,000 2,237,160
Legacy Health System, Refunding:
5.250% 05/01/21...................... 4,500,000 4,550,940
5.750% 05/01/16...................... 1,500,000 1,607,970
Odd Fellows Home, Series A,
Refunding,
5.875% 09/15/21...................... 1,165,000 1,120,078
Robison Jewish Home Project,
6.250% 10/01/21...................... 1,650,000 1,667,226
Willamette Falls Hospital Project:
5.750% 04/01/14...................... 1,005,000 1,025,321
6.000% 04/01/19...................... 1,750,000 1,757,157
Willamette View, Inc. Project:
6.000% 11/01/08...................... 670,000 682,837
Series A,
6.850% 11/01/15...................... 1,580,000 1,685,544
Clackamas County Housing Authority,
Multi-Family Housing, Easton Ridge,
Series A,
5.800% 12/01/16...................... 2,255,000 2,324,499
Clatsop Care Center Health District,
Senior Housing,
6.875% 08/01/28...................... 500,000 506,240
Deschutes County Hospital Facilities
Authority, Cascade Health
Services, Inc.:
5.500% 01/01/22...................... 2,000,000 2,026,860
5.600% 01/01/27...................... 5,550,000 5,631,640
5.600% 01/01/32...................... 2,000,000 2,026,720
PAR VALUE
- -----------------------------------------------------------------------------
Deschutes Valley Water District,
5.875% 09/01/05...................... $ 2,315,000 $ 2,492,607
Eugene Airport, Refunding (AMT):
5.650% 05/01/06...................... 325,000 348,212
5.650% 05/01/07...................... 555,000 599,972
5.700% 05/01/08...................... 515,000 558,492
Hillsboro Hospital Facility Authority,
Tuality Healthcare,
5.750% 10/01/12...................... 3,810,000 3,914,356
Lebanon Wastewater, Refunding,
5.750% 06/01/11...................... 1,225,000 1,255,257
Multnomah County Educational
Facilities, University of Portland
Project:
5.700% 04/01/15...................... 1,000,000 1,062,850
6.000% 04/01/20...................... 500,000 521,950
6.000% 04/01/25...................... 500,000 522,800
Myrtle Point Water,
6.000% 12/01/20...................... 510,000 532,736
North Clackamas Parks & Recreation
District Facilities,
5.700% 04/01/13...................... 2,920,000 3,267,334
Northern Wasco County,
People's Utility District Electric:
(a) 02/01/06......................... 610,000 553,758
(a) 02/01/07......................... 585,000 494,091
(a) 02/01/08......................... 610,000 479,545
(a) 02/01/11......................... 500,000 316,110
Oregon State Department of
Transportation, Highway User Tax,
Series A:
5.125% 11/15/26...................... 555,000 558,513
5.500% 11/15/16...................... 2,500,000 2,740,550
Oregon State Economic Development,
Dove Lewis 24 Hour Emergency
Animal Hospital,
7.000% 12/01/19...................... 1,425,000 1,497,703
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 3,987,312
Linfield College Project, Series A:
4.650% 10/01/09...................... 555,000 577,222
5.500% 10/01/18...................... 1,000,000 1,006,860
Reed College Project, Series A,
5.300% 07/01/11...................... 500,000 532,210
See Accompanying Notes to Financial Statements
121
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA OREGON MUNICIPAL BOND FUND (CONT.)
AUGUST 31, 2003
PAR VALUE
- -----------------------------------------------------------------------------
St. Anthony's Village Housing,
Series A (AMT),
7.250% 06/01/28...................... $ 1,380,000 $ 1,393,883
Oregon State Housing & Community
Services:
Department of Housing,
Finance Assisted Insured
Multi-Unit B,
6.800% 07/01/13...................... 7,820,000 7,836,657
Department Mortgage Multi-Family
Housing, Series B (AMT),
6.000% 07/01/31...................... 6,935,000 7,146,934
Department Mortgage Single Family
Program:
Series A,
4.850% 07/01/10...................... 250,000 262,303
Series A (AMT),
6.200% 07/01/27...................... 2,250,000 2,322,855
Series B (AMT),
5.250% 07/01/30...................... 645,000 636,725
Series D,
6.700% 07/01/13...................... 1,000,000 1,007,600
Series E:
5.375% 07/01/21...................... 3,770,000 3,867,718
5.700% 07/01/12...................... 955,000 1,002,931
5.800% 07/01/14...................... 845,000 869,209
6.000% 07/01/20...................... 2,365,000 2,479,939
Series F (AMT),
5.650% 07/01/28...................... 1,155,000 1,170,893
Series F MBIA-IBC (AMT),
5.650% 07/01/28...................... 875,000 887,040
Series G (AMT),
5.700% 07/01/32...................... 1,115,000 1,128,871
Series H (AMT),
5.500% 07/01/17...................... 1,660,000 1,689,631
Series J,
5.150% 07/01/24...................... 2,840,000 2,811,174
Series L,
6.050% 07/01/20...................... 325,000 340,031
Series L (AMT),
5.900% 07/01/31...................... 3,885,000 3,964,642
Series M (AMT),
5.800% 07/01/12...................... 640,000 670,816
Series Q:
4.700% 07/01/15...................... 820,000 824,756
4.900% 07/01/17...................... 805,000 795,396
PAR VALUE
- -----------------------------------------------------------------------------
Mountain Shadows Apts. B-1,
6.250% 12/01/05...................... $ 4,000,000 $ 3,687,280
Oregon State Housing Finance,
5.800% 07/01/09...................... 215,000 215,144
Port Morrow,
6.700% 06/01/20...................... 2,000,000 2,029,180
Port of St. Helens:
5.600% 08/01/14...................... 315,000 321,017
5.750% 08/01/19...................... 425,000 433,509
Port of St. Helens Pollution Control,
Portland General Electric Co:
Series A,
4.800% 04/01/10...................... 5,195,000 4,458,453
Series B,
4.800% 06/01/10...................... 3,500,000 3,002,720
Portland Housing Authority:
Multi-Family Housing Senior
Lien Civic Apartments,
Series A,
5.600% 01/01/18...................... 1,240,000 1,276,282
Pool Housing, Series A, Refunding,
4.500% 01/01/09...................... 660,000 688,195
Portland Sewer System Revenue,
Series A, Refunding,
5.000% 06/01/12...................... 4,835,000 5,155,222
Powell Valley Water District,
6.000% 02/01/15...................... 620,000 650,250
Prineville Sewer First Lien,
6.500% 07/01/04...................... 140,000 145,419
Reedsport Water,
7.000% 10/01/14...................... 520,000 535,293
Salem Hospital Facility Authority:
5.000% 08/15/18...................... 2,000,000 1,994,940
5.250% 08/15/14...................... 4,860,000 5,119,816
Sheridan Water Revenue:
6.200% 05/01/15...................... 625,000 667,663
6.450% 05/01/20...................... 520,000 554,590
Sheridan Water Revenue, Refunding,
5.350% 04/01/18...................... 300,000 308,055
South Fork Water Board First Lien,
5.450% 02/01/14...................... 1,300,000 1,319,357
State of Oregon French American
International School Project, Series A,
6.250% 04/01/27...................... 5,370,000 5,485,616
Umatilla County, Hospital Facility
Authority, Catholic Health Initiatives,
Series A:
5.750% 12/01/20...................... 530,000 547,691
6.000% 12/01/30...................... 4,825,000 5,052,788
See Accompanying Notes to Financial Statements
122
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
PAR VALUE
- -----------------------------------------------------------------------------
Washington County Housing Authority:
Affordable Housing, Series A,
6.000% 07/01/20...................... $ 2,000,000 $ 1,926,060
Affordable Housing Pool, Series A:
5.750% 07/01/23...................... 1,000,000 982,510
6.000% 07/01/23...................... 1,000,000 954,240
Multi-Family Bethany Meadows
Project (AMT),
6.250% 08/01/10...................... 695,000 696,501
-------------
171,195,587
-------------
INSURED REVENUE (20.1%)
Clackamas County, Hospital Facilities
Authority, Legacy Health System,
MBIA IBC,
5.500% 02/15/13...................... 495,000 537,511
Deschutes County, Certificates of
Participation, Series A,
5.050% 06/01/17...................... 420,000 429,740
Emerald Peoples Utilities District:
7.350% 11/01/10...................... 2,160,000 2,679,718
7.350% 11/01/11...................... 2,000,000 2,494,600
7.350% 11/01/12...................... 2,490,000 3,127,639
7.350% 11/01/13...................... 2,675,000 3,385,293
Series A,
5.250% 11/01/20...................... 605,000 631,832
Eugene Electric Utilities System,
Series B, Refunding,
5.250% 08/01/13...................... 1,040,000 1,125,322
Guam Housing Corp., Single
Family Mortgage-Backed Securities,
Series A (AMT),
5.750% 09/01/31...................... 175,000 180,703
Medford Hospital Facilities Authority,
Asante Health System, Series A:
5.250% 08/15/10...................... 1,500,000 1,643,355
5.250% 08/15/11...................... 800,000 865,776
Multnomah County Educational
Facilities Authority, University of
Portland Project, Refunding:
5.000% 04/01/11...................... 1,150,000 1,231,811
5.750% 04/01/10...................... 2,000,000 2,210,960
Ontario Catholic Health Holy Rosary
Medical Center,
5.500% 11/15/12...................... 1,500,000 1,619,925
Oregon State Department of
Administrative Services:
Certificates of Participation:
Series A,
5.300% 05/01/08...................... 750,000 826,755
PAR VALUE
- -----------------------------------------------------------------------------
Lottery Education Project:
Series A:
5.000% 04/01/14...................... $ 2,705,000 $ 2,853,288
5.000% 04/01/14...................... 1,830,000 1,957,789
5.250% 04/01/11...................... 4,000,000 4,341,440
5.250% 04/01/13...................... 1,600,000 1,713,152
Series B,
5.250% 04/01/15...................... 1,315,000 1,399,844
Department of Administrative Services,
Certificates of Participation, Refunding:
Series A:
4.500% 05/01/12...................... 1,020,000 1,056,077
5.000% 05/01/13...................... 4,240,000 4,477,652
5.000% 05/01/14...................... 1,000,000 1,048,890
Series B:
5.250% 05/01/10...................... 840,000 930,812
5.250% 05/01/11...................... 2,000,000 2,205,300
Series C:
5.250% 11/01/15...................... 1,000,000 1,075,760
5.250% 11/01/17...................... 5,000,000 5,307,800
Oregon State Economic Community
Development Department, Series A,
5.375% 01/01/11...................... 1,105,000 1,200,870
Oregon State Health, Housing,
Educational & Cultural
Facilities Authority:
Lewis & Clark College,
6.000% 10/01/13...................... 965,000 1,024,618
Reed College Project, Series A,
5.100% 07/01/10...................... 900,000 984,438
Oregon State Health Sciences
University, Series A:
(a) 07/01/09......................... 1,530,000 1,245,956
(a) 07/01/12......................... 1,315,000 898,618
(a) 07/01/14......................... 2,550,000 1,557,055
(a) 07/01/15......................... 4,325,000 2,497,298
(a) 07/01/21......................... 12,515,000 4,884,604
5.250% 07/01/22...................... 1,000,000 1,031,430
Oregon State Housing & Community
Services Department, Single Family
Mortgage Project, Series J (AMT),
5.750% 07/01/29...................... 6,875,000 6,989,881
Port of Portland International Airport:
Series 11 (AMT),
5.625% 07/01/13...................... 1,000,000 1,061,930
Series 12B, Refunding,
5.250% 07/01/12...................... 1,000,000 1,069,690
Series 12C (AMT):
4.750% 07/01/10...................... 2,900,000 3,018,349
5.000% 07/01/13...................... 1,000,000 1,021,520
5.000% 07/01/14...................... 1,750,000 1,786,697
See Accompanying Notes to Financial Statements
123
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA OREGON MUNICIPAL BOND FUND (CONT.)
AUGUST 31, 2003
PAR VALUE
- -----------------------------------------------------------------------------
Series D,
5.250% 07/01/12...................... $ 1,750,000 $ 1,852,900
Portland Arena Gas Tax:
(a) 06/01/16......................... 1,100,000 526,042
(a) 07/01/17......................... 2,320,000 1,035,416
Portland Gas Tax, Series A,
5.800% 06/01/16...................... 1,640,000 1,774,316
Portland Housing Authority,
Multi-Family Housing, Lovejoy
Station Apartments Project
(AMT),
5.900% 07/01/23...................... 1,000,000 1,043,900
Salem Water & Sewer,
5.300% 06/01/15...................... 1,500,000 1,600,380
Tri-County Metropolitan
Transportation District:
Series 1,
5.400% 06/01/19...................... 4,200,000 4,290,510
Series A,
5.000% 09/01/15...................... 1,000,000 1,060,040
Tualatin Hills Park & Recreation
District,
5.750% 03/01/14...................... 990,000 1,119,690
Washington County Housing Authority,
Multi-Family Housing, Tualatin
Meadows (AMT),
5.900% 11/01/18...................... 995,000 1,038,143
Washington County Unified Sewer
Agency,
5.500% 10/01/16...................... 1,250,000 1,341,438
-------------
98,314,473
-------------
Total Revenue Bonds
(Cost of $263,905,006)............... 269,510,060
-------------
PRE-REFUNDED BOND (0.5%)
Oregon State City Sewer,
6.500% 10/01/07...................... 500,000 543,805
Virgin Islands Public Finance Authority,
Unrefunded Balance, Series A,
7.300% 10/01/18...................... 1,185,000 1,523,436
-------------
Total Pre-Refunded Bonds
(Cost of $1,885,649)................. 2,067,241
-------------
OTHER BONDS (4.8%)
Hood River Urban Renewal Agency,
6.250% 12/15/11...................... 1,250,000 1,350,162
PAR VALUE
- -----------------------------------------------------------------------------
Lebanon Special Obligation, Lease
Water, Refunding,
5.400% 10/01/13...................... $ 755,000 $ 764,339
Lebanon Urban Renewal Agency:
5.625% 06/01/19...................... 1,000,000 1,028,020
5.750% 06/01/15...................... 1,120,000 1,149,310
6.000% 06/01/20...................... 1,580,000 1,628,143
Medford Urban Renewal,
5.875% 09/01/10...................... 500,000 531,990
Multnomah County, Certificates of
Participation,
4.550% 08/01/10...................... 1,000,000 1,057,380
Portland Airport Way Urban Renewal
& Redevelopment,
Convention Center, Series A:
5.750% 06/15/17...................... 1,500,000 1,652,760
5.750% 06/15/18...................... 2,050,000 2,247,292
Portland River District Urban Renewal
& Redevelopment, Series A,
5.000% 06/15/17...................... 1,500,000 1,566,510
Portland Urban Renewal &
Redevelopment, South Park
Blocks, Series A:
5.750% 06/15/17...................... 2,065,000 2,275,300
5.750% 06/15/19...................... 2,580,000 2,828,299
Redmond Urban Renewal Agency:
Downtown Area B:
5.650% 06/01/13...................... 720,000 736,913
5.850% 06/01/19...................... 785,000 804,099
South Airport Industrial Area A,
Refunding,
5.700% 06/01/19...................... 650,000 652,100
Seaside Urban Renewal Agency,
Greater Seaside Urban Renewal,
5.250% 06/01/15...................... 1,000,000 1,020,860
Veneta Urban Renewal Agency:
5.375% 02/15/16...................... 700,000 718,767
5.625% 06/15/21...................... 1,100,000 1,114,267
Wilsonville Limited Tax Improvement,
5.000% 12/01/10...................... 445,000 447,096
-------------
Total Other Bonds
(Cost of $22,611,404)................ 23,573,607
-------------
U.S. TERRITORIES BONDS (0.2%)
Puerto Rico Housing Finance Corp., Multi-Family
Mortgage Portfolio A-1,
7.500% 04/01/22 (Cost of $967,912)... 970,000 972,250
-------------
See Accompanying Notes to Financial Statements
124
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
SHARES VALUE
- -----------------------------------------------------------------------------
TAX EXEMPT MONEY MARKET
INVESTMENT (0.9%)
SEI Tax Exempt Trust
(Cost of $4,585,926)................. 4,585,926 $ 4,585,926
-------------
TOTAL INVESTMENTS (99.1%)
(Cost of $473,321,281) (b) .......... 484,701,423
-------------
OTHER ASSETS & LIABILITIES, NET (0.9%)....... 4,562,849
-------------
NET ASSETS (100.0%).......................... $ 489,264,272
=============
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Zero coupon bond.
(b) Cost for federal income tax purposes is $473,197,829.
Columbia Oregon Municipal Bond Fund holds investments that are insured by
private insurers who guarantee the payment of principal and interest in the
event of default. At August 31, 2003, investments in these securities
represented 37.2% of holdings.
ACRONYM NAME
------- ----
AMT Alternative Minimum Tax
IBC Insured Bond Certificates
MBIA Municipal Bond Insurance Association
COLUMBIA HIGH YIELD FUND
AUGUST 31, 2003
PAR VALUE
- -----------------------------------------------------------------------------
CORPORATE NOTES & BONDS (88.9%)
AEROSPACE & DEFENSE (3.4%)
K&F Industries,
9.625% 12/15/10...................... $ 9,255,000 $ 10,041,675
L-3 Communications Corp.,
7.625% 06/15/12...................... 26,325,000 27,378,000
TD Funding Corp.,
Senior Subordinated Notes,
8.375% 07/15/11 (a).................. 15,275,000 15,962,375
-------------
53,382,050
-------------
AMUSEMENT & RECREATION (2.2%)
Cinemark USA, Inc.,
9.000% 02/01/13...................... 21,490,000 22,886,850
Speedway Motorsports, Inc.,
6.750% 06/01/13 (a).................. 12,910,000 12,780,900
-------------
35,667,750
-------------
AUTOMOTIVE & AUTO PARTS (2.8%)
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 5,737,875
8.110% 05/15/09...................... 17,175,000 19,193,063
-------------
44,469,063
-------------
PAR VALUE
- -----------------------------------------------------------------------------
BROADCASTING (2.2%)
Lin Television Corp.,
6.500% 05/15/13 (a).................. $14,150,000 $ 13,725,500
Sinclair Broadcasting Group, Inc.:
8.000% 03/15/12...................... 12,710,000 13,250,175
8.750% 12/15/11...................... 6,710,000 7,230,025
-------------
34,205,700
-------------
CABLE TV (5.8%)
British Sky Broadcasting:
6.875% 02/23/09...................... 5,000,000 5,375,000
7.300% 10/15/06...................... 7,425,000 8,111,813
CSC Holdings, Inc.:
Senior Notes,
7.875% 12/15/07...................... 3,600,000 3,672,000
Senior Subordinated Debentures,
9.875% 02/15/13...................... 11,820,000 12,351,900
Series B,
8.125% 08/15/09...................... 1,550,000 1,600,375
DirecTV Holding LLC,
8.375% 03/15/13 (a).................. 20,305,000 22,183,212
Mediacom LLC:
9.500% 01/15/13...................... 5,800,000 5,858,000
Series B,
8.500% 04/15/08...................... 6,500,000 6,483,750
Rogers Cable, Inc.:
6.250% 06/15/13...................... 10,475,000 9,833,406
7.875% 05/01/12...................... 15,900,000 16,675,125
-------------
92,144,581
-------------
CAPITAL GOODS (1.4%)
Kennametal, Inc.,
7.200% 06/15/12...................... 12,970,000 13,433,366
Wabtec Corp.,
Senior Notes,
6.875% 07/31/13 (a).................. 9,185,000 9,093,150
-------------
22,526,516
-------------
CASINOS & GAMING (6.3%)
Harrahs Operating Co., Inc.,
7.875% 12/15/05...................... 25,400,000 27,432,000
International Game Technology:
7.875% 05/15/04...................... 5,750,000 5,975,693
8.375% 05/15/09...................... 3,575,000 4,185,671
Park Place Entertainment Corp.:
7.875% 03/15/10...................... 150,000 160,125
8.875% 09/15/08...................... 500,000 550,000
9.375% 02/15/07...................... 30,150,000 33,014,250
Station Casinos, Inc.:
8.875% 12/01/08...................... 15,297,000 15,947,123
9.875% 06/01/10...................... 12,065,000 13,271,500
-------------
100,536,362
-------------
See Accompanying Notes to Financial Statements
125
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA HIGH YIELD FUND (CONT.)
AUGUST 31, 2003
PAR VALUE
- -----------------------------------------------------------------------------
CHEMICALS (4.1%)
Acetex Corp.:
10.875% 08/01/09..................... $ 1,690,000 $ 1,842,100
10.875% 08/01/09 (a)................. 7,275,000 7,929,750
Airgas, Inc.,
9.125% 10/01/11...................... 14,618,000 16,152,890
Equistar Chemicals LP:
10.125% 09/01/08..................... 7,370,000 7,370,000
10.625% 05/01/11 (a)................. 4,805,000 4,780,975
Ethyl Corp.,
8.875% 05/01/10...................... 16,400,000 16,564,000
MacDermid, Inc.,
9.125% 07/15/11...................... 9,520,000 10,472,000
-------------
65,111,715
-------------
CONSUMER PRODUCTS (3.3%)
Hasbro, Inc.:
6.150% 07/15/08...................... 16,620,000 16,827,750
8.500% 03/15/06...................... 14,025,000 15,147,000
Scotts Co.,
8.625% 01/15/09...................... 18,990,000 19,892,025
-------------
51,866,775
-------------
DIVERSIFIED MEDIA (2.0%)
Lamar Media Corp.:
7.250% 01/01/13...................... 1,700,000 1,763,750
7.250% 01/01/13 (a).................. 25,058,000 25,997,675
8.625% 09/15/07...................... 3,160,000 3,262,700
-------------
31,024,125
-------------
ENERGY (10.1%)
Chesapeake Energy Corp.:
7.500% 09/15/13 (a).................. 9,625,000 9,745,313
8.125% 04/01/11...................... 3,050,000 3,187,250
8.375% 11/01/08...................... 6,230,000 6,572,650
9.000% 08/15/12...................... 8,750,000 9,450,000
Series 1999 B,
8.500% 03/15/12...................... 850,000 892,500
Grant Prideco:
9.000% 12/15/09...................... 14,995,000 15,782,238
9.625% 12/01/07...................... 12,380,000 13,184,700
Key Energy Services, Inc.:
6.375% 05/01/13...................... 8,915,000 8,469,250
8.375% 03/01/08...................... 2,560,000 2,675,200
Offshore Logistics, Inc.,
6.125% 06/18/13 (a).................. 20,800,000 19,760,000
Pogo Producing Co.,
8.250% 04/15/11...................... 3,080,000 3,280,200
PAR VALUE
- -----------------------------------------------------------------------------
Pride International, Inc.:
9.375% 05/01/07...................... $ 3,228,000 $ 3,324,840
10.000% 06/01/09..................... 6,950,000 7,506,000
Universal Compressions Inc.,
7.250% 05/15/10 (a).................. 5,150,000 5,201,500
Vintage Petroleum, Inc.:
7.875% 05/15/11...................... 500,000 505,000
8.625% 02/01/09...................... 1,000,000 1,025,000
9.750% 06/30/09...................... 7,675,000 8,135,500
Westport Resources Corp.:
8.250% 11/01/11...................... 20,380,000 21,806,600
8.250% 11/01/11 (a).................. 1,175,000 1,257,250
XTO Energy, Inc.:
6.250% 04/15/13...................... 1,600,000 1,600,000
7.500% 04/15/12...................... 15,515,000 16,678,625
-------------
160,039,616
-------------
ENVIRONMENTAL (2.4%)
Allied Waste North America, Inc.,
Series B,
10.000% 08/01/09..................... 29,645,000 32,090,713
Synagro Technologies, Inc.,
9.500% 04/01/09...................... 6,150,000 6,580,500
-------------
38,671,213
-------------
FOOD, BEVERAGE & TOBACCO (3.6%)
Constellation Brands, Inc.:
8.000% 02/15/08...................... 1,500,000 1,582,500
8.125% 01/15/12...................... 9,015,000 9,386,869
8.500% 03/01/09...................... 10,775,000 11,206,000
8.625% 08/01/06...................... 5,100,000 5,457,000
Cott Beverages, Inc.,
8.000% 12/15/11...................... 27,700,000 28,946,500
-------------
56,578,869
-------------
HEALTH CARE (8.3%)
AdvancePCS,
8.500% 04/01/08...................... 8,775,000 9,257,625
AmerisourceBergen Corp.:
7.250% 11/15/12...................... 12,280,000 12,402,800
8.125% 09/01/08...................... 17,125,000 18,109,688
Apogent Technologies, Inc.,
6.500% 05/15/13 (a).................. 2,150,000 2,117,750
HCA, Inc.:
6.910% 06/15/05...................... 7,025,000 7,333,552
7.000% 07/01/07...................... 1,000,000 1,050,519
8.750% 09/01/10...................... 7,000,000 7,776,622
Omnicare, Inc.:
6.125% 06/01/13...................... 3,950,000 3,772,250
Series B,
8.125% 03/15/11...................... 14,740,000 15,624,400
See Accompanying Notes to Financial Statements
126
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
PAR VALUE
- -----------------------------------------------------------------------------
Province Healthcare Co.,
7.500% 06/01/13...................... $12,800,000 $ 12,320,000
Select Medical Corp.:
7.500% 08/01/13 (a).................. 4,150,000 4,139,625
9.500% 06/15/09...................... 11,275,000 12,177,000
Triad Hospitals, Inc., Series B,
8.750% 05/01/09...................... 23,100,000 24,601,500
-------------
130,683,331
-------------
HOMEBUILDERS (2.4%)
KB Home:
7.750% 02/01/10...................... 5,050,000 5,151,000
8.625% 12/15/08...................... 6,325,000 6,641,250
9.500% 02/15/11...................... 7,575,000 8,105,250
Toll Brothers, Inc.,
8.250% 02/01/11...................... 3,200,000 3,392,000
Toll Corp.:
7.750% 09/15/07...................... 3,670,000 3,761,750
8.000% 05/01/09...................... 5,765,000 6,038,837
8.125% 02/01/09...................... 3,750,000 3,946,875
8.250% 12/01/11...................... 1,250,000 1,325,000
-------------
38,361,962
-------------
HOTELS (2.1%)
Extended Stay America, Inc.:
9.150% 03/15/08...................... 10,890,000 11,216,700
9.875% 06/15/11...................... 9,050,000 9,615,625
ITT Corp.,
6.750% 11/15/05...................... 6,055,000 6,312,337
Starwood Hotels & Resorts
Worldwide, Inc.,
7.375% 05/01/07...................... 5,300,000 5,551,750
-------------
32,696,412
-------------
METALS & MINING (2.1%)
Arch Western Finance LLC,
6.750% 07/01/13 (a).................. 17,940,000 17,715,750
Peabody Energy Corp.,
6.875% 03/15/13...................... 15,800,000 15,800,000
-------------
33,515,750
-------------
PACKAGING (5.0%)
Ball Corp.:
6.875% 12/15/12...................... 22,997,000 22,997,000
6.875% 12/15/12 (a).................. 9,900,000 9,900,000
7.750% 08/01/06...................... 2,850,000 3,056,625
Owens-Brockway Glass Container:
8.875% 02/15/09...................... 1,000,000 1,050,000
8.875% 11/15/12...................... 1,750,000 1,837,500
Owens-Illinois, Inc.:
7.150% 05/15/05...................... 8,225,000 8,307,250
7.350% 05/15/08...................... 5,400,000 5,211,000
8.100% 05/15/07...................... 6,400,000 6,464,000
PAR VALUE
- -----------------------------------------------------------------------------
Silgan Holdings, Inc.,
9.000% 06/01/09...................... $19,471,000 $ 20,152,485
-------------
78,975,860
-------------
PAPER & FOREST PRODUCTS (2.9%)
Abitibi Consolidated, Inc.:
6.000% 06/20/13...................... 4,000,000 3,613,104
7.875% 08/01/09...................... 13,225,000 13,692,662
Cascades, Inc.,
7.250% 02/15/13 (a).................. 7,605,000 7,509,937
Smurfit-Stone Container Corp.,
8.250% 10/01/12...................... 4,580,000 4,740,300
Stone Container Corp.:
8.375% 07/01/12...................... 5,185,000 5,340,550
9.750% 02/01/11...................... 9,800,000 10,633,000
-------------
45,529,553
-------------
PRINTING & PUBLISHING (4.5%)
Dex Media East LLC,
12.125% 11/15/12..................... 18,550,000 22,399,125
Houghton Mifflin Co.,
9.875% 02/01/13 (a).................. 16,490,000 17,974,100
Morris Publishing,
Senior Subordinated Notes,
7.000% 08/01/13 (a).................. 5,125,000 5,125,000
R.H. Donnelly Finance Corp.:
8.875% 12/15/10 (a).................. 1,320,000 1,445,400
10.875% 12/15/12 (a)................. 21,245,000 24,750,425
-------------
71,694,050
-------------
RAILROAD (0.4%)
Kansas City Southern:
7.500% 06/15/09...................... 1,655,000 1,690,169
9.500% 10/01/08...................... 4,550,000 4,965,187
-------------
6,655,356
-------------
REAL ESTATE INVESTMENT TRUST (REIT) (1.8%)
Health Care REIT, Inc.:
7.500% 08/15/07...................... 13,000,000 13,972,543
8.000% 09/12/12...................... 125,000 136,167
iStar Financial, Inc.
7.000% 03/15/08...................... 10,450,000 10,685,125
8.750% 08/15/08...................... 2,890,000 3,174,087
-------------
27,967,922
-------------
RESTAURANTS (2.1%)
Yum! Brands, Inc.:
7.450% 05/15/05...................... 1,810,000 1,905,025
7.650% 05/15/08...................... 4,050,000 4,363,875
7.700% 07/01/12...................... 5,315,000 5,673,762
8.500% 04/15/06...................... 3,965,000 4,331,763
8.750% 04/15/11...................... 15,585,000 17,572,087
-------------
33,846,512
-------------
See Accompanying Notes to Financial Statements
127
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA HIGH YIELD FUND (CONT.)
AUGUST 31, 2003
PAR VALUE
- -----------------------------------------------------------------------------
SERVICES (5.3%)
Corrections Corp. of America:
7.500% 05/01/11...................... $12,800,000 $ 12,992,000
Senior Subordinated Notes,
7.500% 05/01/11 (a).................. 16,600,000 16,849,000
Iron Mountain, Inc.:
7.750% 01/15/15...................... 6,875,000 7,012,500
8.250% 07/01/11...................... 1,120,000 1,164,800
8.625% 04/01/13...................... 24,250,000 25,220,000
United Rentals, Inc.,
Series B:
8.800% 08/15/08...................... 8,175,000 8,011,500
9.250% 01/15/09...................... 7,495,000 7,457,525
9.500% 06/01/08...................... 3,700,000 3,700,000
10.750% 04/15/08..................... 1,000,000 1,100,000
--------------
83,507,325
--------------
SHIPPING (1.0%)
Teekay Shipping Corp.,
8.875% 07/15/11...................... 14,181,000 15,404,111
--------------
TELECOMMUNICATIONS (1.4%)
Nextel Communications, Inc.:
9.375% 11/15/09...................... 12,525,000 13,527,000
9.750% 10/31/07...................... 7,000,000 7,210,000
9.950% 02/15/08...................... 2,000,000 2,095,000
--------------
22,832,000
--------------
Total Corporate Notes & Bonds
(Cost of $1,391,634,815)............. 1,407,894,479
--------------
SHORT-TERM OBLIGATION (9.3%)
Repurchase agreement with State
Street Bank & Trust Co., dated
08/29/03, due 09/02/03 at 0.860%,
collateralized by U.S. Treasury
Notes with various maturities to
11/30/04, market value $150,445,944
(repurchase proceeds $147,498,570)
(Cost of $147,488,000)............... 147,488,000 147,488,000
--------------
TOTAL INVESTMENTS (98.2%)
(Cost of $1,539,122,815) (b)......... 1,555,382,479
--------------
OTHER ASSETS & LIABILITIES, NET (1.8%)....... 28,732,583
--------------
NET ASSETS (100.0%).......................... $1,584,115,062
==============
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 August 31, 2003, the value
of these securities amounted to $255,947,587, which represents 16.2%
of net assets.
(b) Cost for federal income tax purposes is $1,542,968,965.
COLUMBIA DAILY INCOME COMPANY
AUGUST 31, 2003
PAR VALUE
- -----------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES (20.1%)
Federal National Mortgage Association (FNMA):
1.040% 10/01/03...................... $15,500,000 $ 15,486,567
1.060% 11/26/03...................... 15,000,000 14,962,017
4.750% 11/14/03...................... 16,298,000 16,416,125
Federal Home Loan Bank (FHLB):
1.050% 10/03/03...................... 16,400,000 16,384,693
1.150% 09/24/03 (a).................. 11,500,000 11,491,551
2.500% 11/14/03...................... 4,800,000 4,812,078
3.125% 11/14/03...................... 6,010,000 6,032,637
6.375% 11/14/03...................... 6,200,000 6,265,454
Federal Home Loan Mortgage Corp. (FHLMC):
1.040% 10/14/03...................... 10,300,000 10,287,205
1.055% 10/30/03...................... 8,200,000 8,185,822
5.250% 02/15/04...................... 20,000,000 20,367,225
6.375% 11/15/03...................... 3,529,000 3,566,822
Student Loan Marketing Association (SLMA):
1.067% 11/20/03 (a).................. 26,500,000 26,499,895
1.077% 02/19/04 (a).................. 20,000,000 20,000,000
-------------
Total U.S. Government Agencies
(Cost of $180,758,091)............... 180,758,091
-------------
COMMERCIAL PAPER (79.9%)
Abbey National North America LLC:
1.010% 09/05/03...................... 6,000,000 5,999,327
1.100% 09/30/03...................... 12,000,000 11,990,237
Abbott Laboratories,
1.010% 09/03/03 (b)(c)............... 5,200,000 5,199,708
American Express Credit Corp.,
1.010% 09/30/03...................... 18,000,000 17,985,355
American General Finance Corp.:
1.010% 09/25/03...................... 13,500,000 13,490,910
1.010% 10/23/03...................... 9,000,000 8,986,870
American Honda Finance:
1.020% 09/10/03...................... 4,700,000 4,698,802
1.030% 09/08/03...................... 7,000,000 6,998,598
1.050% 10/08/03...................... 6,300,000 6,293,201
See Accompanying Notes to Financial Statements
128
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
PAR VALUE
- -----------------------------------------------------------------------------
Archer Daniels Midland Co.:
1.020% 09/09/03 (b)(c)............... $ 5,500,000 $ 5,498,753
1.020% 09/23/03 (b)(c)............... 10,000,000 9,993,767
Banc One Corp.,
1.050% 10/31/03...................... 18,000,000 17,968,500
Barclays U.S. Funding Corp.,
1.040% 10/28/03...................... 20,000,000 19,967,067
BellSouth Corp.:
1.020% 09/18/03 (b)(c)............... 3,300,000 3,298,411
1.020% 09/19/03 (b)(c)............... 10,000,000 9,994,900
Brown-Forman Corp.,
1.010% 09/12/03...................... 9,400,000 9,397,099
Caterpillar Financial Services Corp.:
1.020% 09/16/03...................... 5,265,000 5,262,762
1.020% 09/22/03...................... 4,305,000 4,302,439
Chevron UK Investment PLC:
0.910% 09/18/03 (a).................. 6,500,000 6,497,207
1.010% 09/08/03...................... 9,000,000 8,998,233
1.010% 09/22/03...................... 9,000,000 8,994,698
Citicorp:
1.010% 10/02/03...................... 8,300,000 8,292,781
1.060% 09/04/03...................... 14,600,000 14,598,710
Clorox Corp.,
0.980% 09/11/03...................... 13,000,000 12,996,461
Coca-Cola Co.:
0.880% 09/09/03...................... 10,000,000 9,998,044
1.020% 10/07/03...................... 13,000,000 12,986,740
Deutsche Bank Financial,
1.025% 09/29/03...................... 18,000,000 17,985,650
Diageo Capital PLC:
1.000% 10/15/03 (b).................. 11,500,000 11,485,944
1.000% 10/20/03 (b).................. 2,000,000 1,997,278
E.I. Du Pont de Nemours & Co.:
1.000% 09/03/03...................... 8,400,000 8,399,533
1.010% 09/26/03...................... 10,000,000 9,992,986
Exxon Asset Management Co.,
1.000% 09/10/03...................... 15,000,000 14,996,250
Gannett, Inc.:
1.020% 09/04/03 (b)(c)............... 4,300,000 4,299,635
1.050% 09/08/03 (b)(c)............... 4,600,000 4,599,061
General Electric Capital Corp.:
1.060% 10/16/03...................... 8,600,000 8,588,605
1.220% 09/10/03...................... 14,000,000 13,995,730
Goldman Sachs Group, Inc.,
1.020% 11/04/03...................... 13,000,000 12,976,427
Household Finance Corp.:
1.020% 09/02/03...................... 4,600,000 4,599,870
1.200% 09/02/03...................... 9,000,000 8,999,700
PAR VALUE
- -----------------------------------------------------------------------------
J.P. Morgan Chase & Co.,
1.010% 10/22/03...................... $ 9,000,000 $ 8,987,123
Lubrizol Corp.:
1.010% 10/10/03 (b)(c)............... 10,400,000 10,388,621
1.180% 09/15/03 (b)(c)............... 5,300,000 5,297,568
McGraw-Hill, Inc.,
1.150% 09/17/03...................... 14,000,000 13,992,844
Merck & Co., Inc.,
1.040% 10/20/03...................... 22,000,000 21,968,858
MetLife Funding, Inc.,
1.010% 10/30/03...................... 11,000,000 10,981,792
Nestle Capital Corp.:
1.020% 09/12/03 (b).................. 15,400,000 15,395,200
1.030% 09/19/03 (b).................. 7,300,000 7,296,240
Nike, Inc.,
1.010% 09/17/03...................... 10,000,000 9,995,511
PACCAR Financial Corp.:
1.010% 09/03/03...................... 6,300,000 6,299,647
1.010% 10/27/03...................... 5,100,000 5,091,987
1.020% 09/26/03...................... 6,700,000 6,695,254
Private Export Funding Corp.:
1.000% 12/17/03 (b)(c)............... 11,600,000 11,565,522
1.000% 01/15/04 (b)(c)............... 10,000,000 9,962,222
Procter & Gamble Co.:
1.020% 10/06/03...................... 14,200,000 14,185,918
1.020% 10/29/03...................... 8,500,000 8,486,032
Prudential Funding Corp.,
1.040% 09/26/03...................... 18,000,000 17,987,000
Pzifer, Inc.:
1.010% 09/16/03 (b).................. 10,700,000 10,695,497
1.020% 10/02/03 (b).................. 12,000,000 11,989,460
Royal Bank of Scotland PLC,
1.030% 09/15/03...................... 18,000,000 17,992,790
San Paolo U.S. Finance Co.,
1.070% 09/12/03...................... 18,000,000 17,994,115
Schering-Plough Corp.,
1.040% 09/18/03...................... 13,300,000 13,293,468
Shell Finance:
1.020% 10/15/03...................... 5,500,000 5,493,143
1.050% 11/17/03...................... 12,000,000 11,973,050
Societe Generale of North America, Inc.,
1.020% 10/08/03...................... 18,000,000 17,981,130
UBS Finance, Inc.,
1.010% 09/05/03...................... 6,000,000 5,999,327
Verizon Network Funding Corp.:
1.030% 09/25/03...................... 10,000,000 9,993,133
1.030% 10/03/03...................... 6,000,000 5,994,507
Wal-Mart Stores, Inc.,
1.030% 09/03/03...................... 7,600,000 7,599,565
See Accompanying Notes to Financial Statements
129
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
COLUMBIA DAILY INCOME COMPANY (CONT.)
AUGUST 31, 2003
PAR VALUE
- -----------------------------------------------------------------------------
Washington Post Co.:
1.030% 10/14/03 (b)(c)............... $12,000,000 $ 11,985,237
1.040% 10/09/03 (b)(c)............... 5,600,000 5,593,852
Wells Fargo & Co.,
1.010% 09/05/03...................... 5,200,000 5,199,416
-------------
Total Commercial Paper
(Cost of $717,961,278)............... 717,961,278
-------------
SHORT-TERM OBLIGATION (0.1%)
Repurchase agreement with State
Street Bank & Trust Co., dated
08/29/03, due 09/02/03 at 0.860%,
collateralized by a U.S. Treasury
Note maturing 07/15/06,
market value of $641,275
(repurchase proceeds $627,060)
(Cost of $627,000)................... 627,000 627,000
-------------
TOTAL INVESTMENTS (100.1%)
(Cost of $899,346,369) (d)........... 899,346,369
-------------
OTHER ASSETS & LIABILITIES, NET (-0.1%)...... (1,182,488)
-------------
NET ASSETS (100.0%).......................... $ 898,163,881
=============
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
August 31, 2003.
(b) Represents private placement securities exempt from registration by Section
4(2) of the Securities Act of 1933. These securities generally are issued to
investors who are purchasing the securities for investments and not for
public distribution. Any resale by the Fund must be in an exempt
transaction, normally to other institutional investors. At August 31, 2003,
the aggregate amortized cost of the Fund's private placement securities were
$156,536,876 which represents 17.4% of net assets. None of these securities
were deemed illiquid.
(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 August 31, 2003, the value
of these securities amounted to $97,677,257, which represents 10.9% of
net assets.
(d) Cost for both financial statements and federal income tax purposes is the
same.
See Accompanying Notes to Financial Statements
130
This page intentionally left blank.
131
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
COLUMBIA FUNDS
AUGUST 31, 2003
COMMON INTERNATIONAL MID CAP SMALL CAP
STOCK GROWTH STOCK GROWTH GROWTH
FUND FUND FUND FUND FUND
------------ -------------- ------------ -------------- ------------
ASSETS:
Investments, at identified cost
(including short-term obligations) ............ $364,472,970 $ 760,406,748 $246,263,827 $ 844,965,814 $495,190,366
============ ============== ============ ============== ============
Investments, at value........................... $426,469,781 $ 923,538,636 $268,812,068 $1,020,412,185 $601,816,384
Repurchase agreement............................ 13,193,000 17,932,000 6,616,000 28,145,000 39,723,000
------------ -------------- ------------ -------------- ------------
Total investments, at value................... $439,662,781 $ 941,470,636 $275,428,068 $1,048,557,185 $641,539,384
Cash............................................ 165 800 946 209 7
Foreign currency (cost of $10,578,470).......... -- -- 10,579,591 -- --
Receivable for:
Investments sold.............................. 8,649,914 17,766,439 8,205,472 3,755,645 2,306,558
Capital stock sold............................ 379,708 868,115 1,534,814 1,417,456 3,379,476
Interest...................................... 946 1,285 474 2,017 2,847
Dividends..................................... 404,165 605,391 731,132 256,368 130,275
Expense reimbursement or waiver
due from Advisor or Distributor ............... -- 12,384 -- -- --
Prepaid expense................................. 15,887 -- -- 7,791 --
Deferred compensation plan...................... -- 1,927 5,892 2,185 --
Other assets.................................... 46 -- -- 24,850 --
------------ -------------- ------------ -------------- ------------
Total assets.................................... 449,113,612 960,726,977 296,486,389 1,054,023,706 647,358,547
------------ -------------- ------------ -------------- ------------
LIABILITIES:
Payable to custodian bank....................... -- -- -- -- --
Payable for:
Investments purchased on a
delayed delivery basis ...................... -- -- -- -- --
Investments purchased ........................ 5,249,568 29,688,795 14,065,242 12,869,002 8,560,944
Capital stock redeemed ....................... 14,743,830 359,055 140,052 911,439 388,195
Distributions ................................ -- -- -- -- --
Investment management fee .................... 221,831 457,089 212,016 723,752 504,177
Transfer agent fee ........................... 144,365 249,724 149,304 142,697 184,414
Pricing and bookkeeping fees ................. 3,789 8,405 2,464 7,983 3,453
Expenses received at merger ................. -- 77,730 12,405 62,871 --
Directors' fees .............................. 5,211 5,716 4,189 5,643 1,000
Audit fee .................................... 26,150 27,140 35,061 25,980 29,410
Distribution and service fees ................ 734 6,230 11,708 12,735 --
Custody fee .................................. 3,984 6,591 23,000 4,400 13,060
Reports to shareholders ...................... 75,866 82,870 31,287 64,332 41,343
Deferred compensation plan ..................... -- 1,927 5,892 2,185 --
Foreign capital gains tax payable .............. -- -- 456,569 -- --
Other liabilities .............................. 13,566 19,453 5,641 16,834 16,978
------------ -------------- ------------ -------------- ------------
Total liabilities............................... 20,488,894 30,990,725 15,154,830 14,849,853 9,742,974
------------ -------------- ------------ -------------- ------------
NET ASSETS........................................ $428,624,718 $ 929,736,252 $281,331,559 $1,039,173,853 $637,615,573
============ ============== ============ ============== ============
NET ASSETS consist of:
Paid-in capital ................................ $500,230,887 $1,215,080,384 $314,914,091 $1,103,720,347 $700,372,092
Undistributed (overdistributed)
net investment income ......................... 1,506,446 (1,289) 1,284,980 (2,185) 180,997
Accumulated net realized gain (loss) ........... (148,302,426) (466,406,731) (63,576,936) (268,135,680) (209,286,534)
Unrealized appreciation (depreciation) on:
Investments .................................. 75,189,811 181,063,888 29,164,241 203,591,371 146,349,018
Foreign currency translations ................ -- -- (81,562) -- --
Foreign capital gains tax..................... -- -- (373,255) -- --
------------ -------------- ------------ -------------- ------------
NET ASSETS........................................ $428,624,718 $ 929,736,252 $281,331,559 $1,039,173,853 $637,615,573
============ ============== ============ ============== ============
REAL ESTATE STRATEGIC SHORT TERM
EQUITY TECHNOLOGY INVESTOR BALANCED BOND
FUND FUND FUND FUND FUND
------------ ----------- ------------ ------------ ------------
ASSETS:
Investments, at identified cost
(including short-term obligations) ............ $706,602,299 $19,360,558 $250,911,114 $590,741,807 $562,536,624
============ =========== ============ ============ ============
Investments, at value........................... $852,324,509 $18,367,164 $235,998,817 $629,718,748 $469,201,868
Repurchase agreement............................ 45,627,000 4,200,000 56,287,000 37,340,000 94,242,000
------------ ----------- ------------ ------------ ------------
Total investments, at value................... $897,951,509 $22,567,164 $292,285,817 $667,058,748 $563,443,868
Cash............................................ 577 1,810,691 295 45,466 17,143
Foreign currency (cost of $10,578,470).......... -- -- -- -- --
Receivable for:
Investments sold.............................. 5,933,777 205,553 2,890,953 10,537,501 10,769,818
Capital stock sold............................ 1,821,455 81,034 1,294,632 1,480,529 999,582
Interest...................................... 3,270 301 4,034 1,962,085 3,420,907
Dividends..................................... 971,091 5,205 341,503 392,415 --
Expense reimbursement or waiver
due from Advisor or Distributor ............... -- 68,855 18,418 -- 225,456
Prepaid expense................................. 1,609 -- 15,315 15,514 10,903
Deferred compensation plan...................... -- -- 8,492 -- 2,979
Other assets.................................... -- -- -- -- --
------------ ----------- ------------ ------------ ------------
Total assets.................................... 906,683,288 24,738,803 296,859,459 681,492,258 578,890,656
------------ ----------- ------------ ------------ ------------
LIABILITIES:
Payable to custodian bank....................... -- -- -- -- --
Payable for:
Investments purchased on a
delayed delivery basis ...................... -- -- -- 19,361,334 28,068,528
Investments purchased ........................ -- 3,327,163 4,645,125 5,093,710 --
Capital stock redeemed ....................... 417,684 49,212 169,391 11,308,104 770,961
Distributions ................................ -- -- -- -- 402,698
Investment management fee .................... 562,285 14,845 178,417 276,779 221,365
Transfer agent fee ........................... 222,392 12,962 94,300 135,534 68,846
Pricing and bookkeeping fees ................. 7,356 2,083 1,820 8,064 4,538
Expenses received at merger ................. -- -- 16,283 -- 43,101
Directors' fees .............................. 6,216 1,456 3,017 7,109 12,107
Audit fee .................................... 21,430 17,100 25,920 29,097 27,690
Distribution and service fees ................ 11,136 1,501 16,994 4,149 51,915
Custody fee .................................. 2,811 1,108 7,590 5,503 2,200
Reports to shareholders ...................... 52,983 4,802 9,915 51,888 19,739
Deferred compensation plan ..................... -- -- 8,492 -- 2,979
Foreign capital gains tax payable .............. -- -- -- -- --
Other liabilities .............................. 25,475 7,084 14,174 19,630 17,912
------------ ----------- ------------ ------------ ------------
Total liabilities............................... 1,329,768 3,439,316 5,191,438 36,300,901 29,714,579
------------ ----------- ------------ ------------ ------------
NET ASSETS........................................ $905,353,520 $21,299,487 $291,668,021 $645,191,357 $549,176,077
============ =========== ============ ============ ============
NET ASSETS consist of:
Paid-in capital ................................ $720,937,077 $24,015,762 $278,978,811 $717,293,000 $550,334,561
Undistributed (overdistributed)
net investment income ......................... 4,718,014 -- 1,354,437 1,622,249 5,674
Accumulated net realized gain (loss) ........... (11,650,781) (5,922,881) (30,039,854) (150,040,833) (2,071,402)
Unrealized appreciation (depreciation) on:
Investments .................................. 191,349,210 3,206,606 41,374,703 76,316,941 907,244
Foreign currency translations ................ -- -- (76) -- --
Foreign capital gains tax..................... -- -- -- -- --
------------ ----------- ------------ ------------ ------------
NET ASSETS........................................ $905,353,520 $21,299,487 $291,668,021 $645,191,357 $549,176,077
============ =========== ============ ============ ============
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) ............ $568,251,735 $15,266,214 $473,321,281 $1,539,122,815 $899,346,369
============ =========== ============ ============== ============
Investments, at value........................... $520,957,468 $15,690,670 $484,701,423 $1,407,894,479 $899,346,369
Repurchase agreement............................ 54,303,000 -- -- 147,488,000 --
------------ ----------- ------------ -------------- ------------
Total investments, at value................... $575,260,468 $15,690,670 $484,701,423 $1,555,382,479 $899,346,369
Cash............................................ 322 -- -- 501 380
Foreign currency (cost of $10,578,470).......... -- -- -- -- --
Receivable for:
Investments sold.............................. 7,663,830 -- -- 1,076,702 --
Capital stock sold............................ 827,237 206,865 261,697 8,808,340 1,711,891
Interest...................................... 4,675,359 205,682 6,008,418 28,945,740 637,518
Dividends..................................... -- -- -- -- --
Expense reimbursement or waiver
due from Advisor or Distributor ............... -- 73,045 -- -- --
Prepaid expense................................. -- -- 23,556 60,613 930
Deferred compensation plan...................... -- -- -- -- --
Other assets.................................... 215,943 595 -- -- 573,525
------------ ----------- ------------ -------------- ------------
Total assets.................................... 588,643,159 16,176,857 490,995,094 1,594,274,375 902,270,613
------------ ----------- ------------ -------------- ------------
LIABILITIES:
Payable to custodian bank....................... -- 117,684 -- -- --
Payable for:
Investments purchased on a
delayed delivery basis ...................... 66,702,310 -- -- -- --
Investments purchased ........................ -- -- -- 4,544,249 --
Capital stock redeemed ....................... 856,274 207,633 1,121,164 1,992,422 3,177,422
Distributions ................................ -- 4,090 164,579 2,237,699 --
Investment management fee .................... 227,763 6,948 209,165 754,317 426,069
Transfer agent fee ........................... 119,136 7,001 159,865 207,200 382,178
Pricing and bookkeeping fees ................. 8,402 2,073 4,026 10,753 8,600
Expenses received at merger ................. -- -- -- -- --
Directors' fees .............................. 5,749 3,745 4,653 3,499 3,000
Audit fee .................................... 28,360 23,500 27,720 30,430 27,430
Distribution and service fees ................ 9,096 1,026 3,673 236,669 --
Custody fee .................................. 4,643 1,145 4,661 2,699 7,200
Reports to shareholders ...................... 39,832 7,495 24,003 57,400 70,643
Deferred compensation plan ..................... -- -- -- -- --
Foreign capital gains tax payable .............. -- -- -- -- --
Other liabilities .............................. 50,997 10,975 7,313 81,976 4,190
------------ ----------- ------------ -------------- ------------
Total liabilities............................... 68,052,562 393,315 1,730,822 10,159,313 4,106,732
------------ ----------- ------------ -------------- ------------
NET ASSETS........................................ $520,590,597 $15,783,542 $489,264,272 $1,584,115,062 $898,163,881
============ =========== ============ ============== ============
NET ASSETS consist of:
Paid-in capital ................................ $517,246,964 $15,300,439 $474,398,468 $1,607,390,431 $898,163,881
Undistributed (overdistributed)
net investment income ......................... (760,011) 2,584 141,548 (3,743,314) --
Accumulated net realized gain (loss) ........... (2,905,089) 56,063 3,344,114 (35,791,719) --
Unrealized appreciation (depreciation) on:
Investments .................................. 7,008,733 424,456 11,380,142 16,259,664 --
Foreign currency translations ................ -- -- -- -- --
Foreign capital gains tax..................... -- -- -- -- --
------------ ----------- ------------ -------------- ------------
NET ASSETS........................................ $520,590,597 $15,783,542 $489,264,272 $1,584,115,062 $898,163,881
============ =========== ============ ============== ============
See Accompanying Notes to Financial Statements
132-133 Spread
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
COLUMBIA FUNDS
AUGUST 31, 2003
COMMON INTERNATIONAL MID CAP SMALL CAP
STOCK GROWTH STOCK GROWTH GROWTH
FUND FUND FUND FUND FUND
------------ ------------ ------------- ------------ ------------
NET ASSETS:
Class A Shares................................... $ 223,254 $ 4,229,024 $ 21,664,244 $ 4,525,070 --
============ ============ ============= ============ ============
Class B Shares................................... $ 619,972 $ 792,602 $ 10,315,869 $ 4,242,490 --
============ ============ ============= ============ ============
Class D Shares................................... $ 112,206 $ 293,593 $ 632,968 $ 737,417 --
============ ============ ============= ============ ============
Class G Shares................................... -- $ 14,810,013 -- $ 805,674 --
============ ============ ============= ============ ============
Class T Shares................................... -- -- -- $ 29,920,340 --
============ ============ ============= ============ ============
Class Z Shares................................... $427,669,286 $909,611,020 $ 248,718,478 $998,942,862 $637,615,573
============ ============ ============= ============ ============
SHARES OUTSTANDING:
Class A Shares................................... 12,968 171,867 1,909,647 250,188 --
============ ============ ============= ============ ============
Class B Shares................................... 36,217 32,392 918,237 235,937 --
============ ============ ============= ============ ============
Class D Shares................................... 6,559 11,995 56,142 41,022 --
============ ============ ============= ============ ============
Class G Shares................................... -- 604,800 -- 44,817 --
============ ============ ============= ============ ============
Class T Shares................................... -- -- -- 1,650,781 --
============ ============ ============= ============ ============
Class Z Shares................................... 24,773,591 36,833,293 21,815,738 54,986,248 29,493,262
============ ============ ============= ============ ============
CLASS A SHARES:
Net asset value per share (a).................... $ 17.22 $ 24.61 $ 11.34 $ 18.09 --
============ ============ ============= ============ ============
Maximum sales charge............................. 5.75% 5.75% 5.75% 5.75% --
============ ============ ============= ============ ============
Maximum offering price per share (b)............. $ 18.27 $ 26.11 $ 12.03 $ 19.19 --
============ ============ ============= ============ ============
CLASS B SHARES:
Net asset value and offering price
per share (a) .................................. $ 17.12 $ 24.47 $ 11.23 $ 17.98 --
============ ============ ============= ============ ============
CLASS D SHARES:
Net asset value per share (a).................... $ 17.11 $ 24.48 $ 11.27 $ 17.98 --
============ ============ ============= ============ ============
Maximum sales charge............................. 1.00% 1.00% 1.00% 1.00% --
============ ============ ============= ============ ============
Maximum offering price per share (b)............. $ 17.28 $ 24.73 $ 11.38 $ 18.16 --
============ ============ ============= ============ ============
CLASS G SHARES:
Net asset value and offering price
per share (a) .................................. -- $ 24.49 -- $ 17.98 --
============ ============ ============= ============ ============
CLASS T SHARES:
Net asset value per share (a).................... -- -- -- $ 18.12 --
============ ============ ============= ============ ============
Maximum sales charge............................. -- -- -- 5.75% --
============ ============ ============= ============ ============
Maximum offering price per share (b)............. -- -- -- $ 19.23 --
============ ============ ============= ============ ============
CLASS Z SHARES:
Net asset value and offering
price per share (c) $ 17.26 $ 24.70 $ 11.40 $ 18.17 $ 21.62
============ ============ ============= ============ ============
REAL ESTATE STRATEGIC SHORT TERM
EQUITY TECHNOLOGY INVESTOR BALANCED BOND
FUND FUND FUND FUND FUND
------------ ------------ ------------ ------------ ------------
NET ASSETS:
Class A Shares................................... $ 12,364,384 $ 375,708 $ 60,112,271 $ 670,002 $ 37,261,134
============ ============ ============ ============ ============
Class B Shares................................... $ 4,776,082 $ 1,245,676 $ 3,397,500 $ 3,348,724 $ 26,965,425
============ ============ ============ ============ ============
Class D Shares................................... $ 3,466,499 $ 14,764 $ 704,480 $ 770,465 $ 18,512,248
============ ============ ============ ============ ============
Class G Shares................................... -- -- -- -- $ 1,614,404
============ ============ ============ ============ ============
Class T Shares................................... -- -- -- -- $ 28,229,557
============ ============ ============ ============ ============
Class Z Shares................................... $884,746,555 $ 19,663,339 $227,453,770 $640,402,166 $436,593,309
============ ============ ============ ============ ============
SHARES OUTSTANDING:
Class A Shares................................... 587,787 63,600 3,769,506 34,934 4,321,054
============ ============ ============ ============ ============
Class B Shares................................... 227,059 212,608 214,760 174,795 3,127,172
============ ============ ============ ============ ============
Class D Shares................................... 164,802 2,509 44,563 40,201 2,146,834
============ ============ ============ ============ ============
Class G Shares................................... -- -- -- -- 187,220
============ ============ ============ ============ ============
Class T Shares................................... -- -- -- -- 3,273,725
============ ============ ============ ============ ============
Class Z Shares................................... 42,017,490 3,314,033 14,230,455 33,366,854 50,631,617
============ ============ ============ ============ ============
CLASS A SHARES:
Net asset value per share (a).................... $ 21.04 $ 5.91 $ 15.95 $ 19.18 $ 8.62
============ ============ ============ ============ ============
Maximum sales charge............................. 5.75% 5.75% 5.75% 5.75% 4.75%
============ ============ ============ ============ ============
Maximum offering price per share (b)............. $ 22.32 $ 6.27 $ 16.92 $ 20.35 $ 9.05
============ ============ ============ ============ ============
CLASS B SHARES:
Net asset value and offering price
per share (a) .................................. $ 21.03 $ 5.86 $ 15.82 $ 19.16 $ 8.62
============ ============ ============ ============ ============
CLASS D SHARES:
Net asset value per share (a).................... $ 21.03 $ 5.88 $ 15.81 $ 19.17 $ 8.62
============ ============ ============ ============ ============
Maximum sales charge............................. 1.00% 1.00% 1.00% 1.00% 1.00%
============ ============ ============ ============ ============
Maximum offering price per share (b)............. $ 21.24 $ 5.94 $ 15.97 $ 19.36 $ 8.71
============ ============ ============ ============ ============
CLASS G SHARES:
Net asset value and offering price
per share (a) .................................. -- -- -- -- $ 8.62
============ ============ ============ ============ ============
CLASS T SHARES:
Net asset value per share (a).................... -- -- -- -- $ 8.62
============ ============ ============ ============ ============
Maximum sales charge............................. -- -- -- -- 4.75%
============ ============ ============ ============ ============
Maximum offering price per share (b)............. -- -- -- -- $ 9.05
============ ============ ============ ============ ============
CLASS Z SHARES:
Net asset value and offering
price per share (c) $ 21.06 $ 5.93 $ 15.98 $ 19.19 $ 8.62
============ ============ ============ ============ ============
NATIONAL OREGON
FIXED INCOME MUNICIPAL MUNICIPAL DAILY
SECURITIES BOND BOND HIGH YIELD INCOME
FUND FUND FUND FUND COMPANY
------------- ----------- ------------- -------------- -------------
NET ASSETS:
Class A Shares................................... $ 7,503,053 $ 398,047 $ 2,138,261 $ 193,266,504 --
============= =========== ============= ============== =============
Class B Shares................................... $ 4,409,662 $ 593,473 $ 999,476 $ 89,949,828 --
============= =========== ============= ============== =============
Class D Shares................................... $ 2,631,679 $ 442,612 $ 699,530 $ 103,558,697 --
============= =========== ============= ============== =============
Class G Shares................................... -- -- -- -- --
============= =========== ============= ============== =============
Class T Shares................................... -- -- -- -- --
============= =========== ============= ============== =============
Class Z Shares................................... $ 506,046,203 $14,349,410 $ 485,427,005 $1,197,340,033 $ 898,163,881
============= =========== ============= ============== =============
SHARES OUTSTANDING:
Class A Shares................................... 562,534 39,390 174,556 22,771,369 --
============= =========== ============= ============== =============
Class B Shares................................... 330,620 58,727 81,594 10,598,416 --
============= =========== ============= ============== =============
Class D Shares................................... 197,313 43,798 57,107 12,201,596 --
============= =========== ============= ============== =============
Class G Shares................................... -- -- -- -- --
============= =========== ============= ============== =============
Class T Shares................................... -- -- -- -- --
============= =========== ============= ============== =============
Class Z Shares................................... 37,941,343 1,419,965 39,628,266 141,076,041 898,163,881
============= =========== ============= ============== =============
CLASS A SHARES:
Net asset value per share (a).................... $ 13.34 $ 10.11 $ 12.25 $ 8.49 --
============= =========== ============= ============== =============
Maximum sales charge............................. 4.75% 4.75% 4.75% 4.75% --
============= =========== ============= ============== =============
Maximum offering price per share (b)............. $ 14.01 $ 10.61 $ 12.86 $ 8.91 --
============= =========== ============= ============== =============
CLASS B SHARES:
Net asset value and offering price
per share (a) .................................. $ 13.34 $ 10.11 $ 12.25 $ 8.49 --
============= =========== ============= ============== =============
CLASS D SHARES:
Net asset value per share (a).................... $ 13.34 $ 10.11 $ 12.25 $ 8.49 --
============= =========== ============= ============== =============
Maximum sales charge............................. 1.00% 1.00% 1.00% 1.00% --
============= =========== ============= ============== =============
Maximum offering price per share (b)............. $ 13.47 $ 10.21 $ 12.37 $ 8.58 --
============= =========== ============= ============== =============
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 and offering
price per share (c) $ 13.34 $ 10.11 $ 12.25 $ 8.49 $ 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.
(c) Redemption price per share is equal to net asset value less any applicable
redemption fee.
See Accompanying Notes to Financial Statements
134-135 Spread
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
COLUMBIA FUNDS
FOR THE PERIOD ENDED AUGUST 31, 2003 (a)
COMMON INTERNATIONAL MID CAP SMALL CAP
STOCK GROWTH STOCK GROWTH GROWTH
FUND FUND FUND FUND FUND
------------ ------------ ------------- ------------ ------------
NET INVESTMENT INCOME:
INCOME:
Interest...................................... $ 77,151 $ 74,263 $ 82,768 $ 357,340 $ 146,609
Dividends..................................... 4,034,689 5,018,300 3,827,199 1,455,237 527,854
Foreign withholding tax....................... (15,858) (30,660) (403,597) (29,280) (3,998)
------------ ------------ ------------- ------------ ------------
Total income................................ 4,095,982 5,061,903 3,506,370 1,783,297 670,465
------------ ------------ ------------- ------------ ------------
EXPENSES:
Investment management fee..................... 1,648,054 3,414,673 1,398,948 5,318,563 3,458,104
Distribution fee:
Class B..................................... 1,763 1,974 50,314 18,438 --
Class D..................................... 310 955 2,779 2,884 --
Class G..................................... -- 60,094 -- 3,187 --
Service fee:
Class A..................................... 243 6,158 33,220 3,951 --
Class B..................................... 586 656 16,772 6,146 --
Class D..................................... 103 317 926 961 --
Class G..................................... -- 27,619 -- 1,471 --
Class T..................................... -- -- -- 53,629 --
Transfer agent fee:
Class A..................................... 433 10,095 63,829 6,462 --
Class B..................................... 1,548 1,155 61,242 12,757 --
Class D..................................... 364 446 3,967 1,547 --
Class G..................................... -- 34,375 -- 2,760 --
Class T..................................... -- -- -- 36,015 --
Class Z..................................... 647,084 1,165,734 497,672 1,078,002 770,117
Pricing and bookkeeping fees.................. 27,883 52,136 16,695 60,192 33,796
Directors' fees............................... 12,145 4,786 16,736 14,333 9,939
Custody fee................................... 11,206 20,041 78,708 19,729 2,201
Audit fee..................................... 25,637 30,293 25,545 34,611 26,566
Registration fee.............................. 119,598 86,913 63,757 165,215 54,886
Other expenses................................ 92,589 212,425 43,520 123,088 74,244
------------ ------------ ------------- ------------ ------------
Total Expenses.............................. 2,589,546 5,130,845 2,374,630 6,963,941 4,429,853
Expenses reimbursed by Advisor................ -- -- -- -- --
Fees waived by Distributor:
Class D..................................... -- -- -- -- --
Fees waived by Advisor:
Class A..................................... -- -- -- (133) --
Class B..................................... -- -- (7,379) (2,918) --
Class D..................................... -- -- (2,779) (341) --
Class Z..................................... -- -- (143,433) (287,697) --
Custody earnings credit....................... (1) (1,061) (280) (527) (1,211)
------------ ------------ ------------- ------------ ------------
Net Expenses.................................. 2,589,545 5,129,784 2,220,759 6,672,325 4,428,642
------------ ------------ ------------- ------------ ------------
NET INVESTMENT INCOME (LOSS)..................... 1,506,437 (67,881) 1,285,611 (4,889,028) (3,758,177)
------------ ------------ ------------- ------------ ------------
REAL ESTATE STRATEGIC SHORT TERM
EQUITY TECHNOLOGY INVESTOR BALANCED BOND
FUND FUND FUND FUND FUND
------------ ---------- ------------ ------------ ------------
NET INVESTMENT INCOME:
INCOME:
Interest...................................... $ 318,035 $ 5,349 $ 207,984 $ 8,072,969 $ 9,724,178
Dividends..................................... 22,181,169 33,208 3,144,227 3,887,152 --
Foreign withholding tax....................... (8,973) (945) (112,485) (15,333) --
------------ ---------- ------------ ------------ ------------
Total income................................ 22,490,231 37,612 3,239,726 11,944,788 9,724,178
------------ ---------- ------------ ------------ ------------
EXPENSES:
Investment management fee..................... 4,042,456 79,533 1,276,121 2,135,099 1,618,065
Distribution fee:
Class B..................................... 14,683 2,141 13,343 9,659 101,746
Class D..................................... 9,358 45 2,452 2,895 65,542
Class G..................................... -- -- -- -- 7,934
Service fee:
Class A..................................... 8,682 268 90,202 627 40,856
Class B..................................... 4,868 713 4,448 3,214 33,762
Class D..................................... 3,093 15 817 965 21,747
Class G..................................... -- -- -- -- 1,831
Class T..................................... -- -- -- -- 29,593
Transfer agent fee:
Class A..................................... 16,011 1,439 66,929 1,513 23,971
Class B..................................... 10,564 1,710 10,573 7,745 33,986
Class D..................................... 5,807 130 2,010 1,196 24,750
Class G..................................... -- -- -- -- 2,744
Class T..................................... -- -- -- -- 31,015
Class Z..................................... 1,362,478 97,082 325,849 850,895 233,341
Pricing and bookkeeping fees.................. 57,110 17,046 22,725 42,811 32,501
Directors' fees............................... 17,628 5,283 10,247 16,269 912
Custody fee................................... 12,810 6,539 26,062 24,587 13,227
Audit fee..................................... 19,643 17,480 27,874 29,633 38,798
Registration fee.............................. 120,077 110,534 44,194 116,632 232,240
Other expenses................................ 166,594 13,120 72,648 79,000 128,492
------------ ---------- ------------ ------------ ------------
Total Expenses.............................. 5,871,862 353,078 1,996,494 3,322,740 2,717,053
Expenses reimbursed by Advisor................ -- (217,744) -- -- (251,782)
Fees waived by Distributor:
Class D..................................... -- -- -- -- (52,192)
Fees waived by Advisor:
Class A..................................... -- -- -- -- --
Class B..................................... -- -- (4,077) -- --
Class D..................................... -- -- (487) -- --
Class Z..................................... -- -- (39,589) -- --
Custody earnings credit....................... (80) (264) (2,714) (1,766) (3,254)
------------ ---------- ------------ ------------ ------------
Net Expenses.................................. 5,871,782 135,070 1,949,627 3,320,974 2,409,825
------------ ---------- ------------ ------------ ------------
NET INVESTMENT INCOME (LOSS)..................... 16,618,449 (97,458) 1,290,099 8,623,814 7,314,353
------------ ---------- ------------ ------------ ------------
FIXED NATIONAL OREGON
INCOME MUNICIPAL MUNICIPAL DAILY
SECURITIES BOND BOND HIGH YIELD INCOME
FUND FUND FUND FUND COMPANY
------------ ------------ ------------ ------------ ------------
NET INVESTMENT INCOME:
INCOME:
Interest...................................... $ 16,633,423 $ 507,035 $ 16,538,243 $ 58,050,730 $ 8,221,104
Dividends..................................... -- 459 -- -- --
Foreign withholding tax....................... -- -- -- -- --
------------ ----------- ------------ ------------ ------------
Total income................................ 16,633,423 507,494 16,538,243 58,050,730 8,221,104
------------ ----------- ------------ ------------ ------------
EXPENSES:
Investment management fee..................... 1,882,651 56,611 1,719,382 4,977,940 3,195,776
Distribution fee:
Class B..................................... 17,681 2,029 3,700 298,743 --
Class D..................................... 10,050 1,384 3,518 350,413 --
Class G..................................... -- -- -- -- --
Service fee:
Class A..................................... 6,743 437 1,732 187,307 --
Class B..................................... 5,877 674 1,233 99,160 --
Class D..................................... 3,334 460 1,173 116,805 --
Class G..................................... -- -- -- -- --
Class T..................................... -- -- -- -- --
Transfer agent fee:
Class A..................................... 15,644 1,025 2,133 112,860 --
Class B..................................... 11,764 1,209 1,337 106,750 --
Class D..................................... 4,689 933 932 97,237 --
Class G..................................... -- -- -- -- --
Class T..................................... -- -- -- -- --
Class Z..................................... 629,633 14,477 325,271 939,608 1,181,362
Pricing and bookkeeping fees.................. 41,640 23,225 34,089 84,027 69,749
Directors' fees............................... 7,023 2,525 15,373 12,778 16,848
Custody fee................................... 15,365 4,157 16,192 18,076 10,393
Audit fee..................................... 34,068 24,931 30,881 29,759 23,878
Registration fee.............................. 160,914 142,955 129,537 351,684 69,559
Other expenses................................ 99,898 22,424 69,090 164,641 94,430
------------ ----------- ------------ ------------ ------------
Total Expenses.............................. 2,946,974 299,456 2,355,573 7,947,788 4,661,995
Expenses reimbursed by Advisor................ -- (221,294) -- -- --
Fees waived by Distributor:
Class D..................................... (2,012) (644) (1,642) (70,083) --
Fees waived by Advisor:
Class A..................................... -- -- -- -- --
Class B..................................... -- -- -- -- --
Class D..................................... -- -- -- -- --
Class Z..................................... -- -- -- -- --
Custody earnings credit....................... (1,575) (47) (91) (6,125) (1,437)
------------ ----------- ------------ ------------ ------------
Net Expenses.................................. 2,943,387 77,471 2,353,840 7,871,580 4,660,558
------------ ----------- ------------ ------------ ------------
NET INVESTMENT INCOME (LOSS)..................... 13,690,036 430,023 14,184,403 50,179,150 3,560,546
------------ ----------- ------------ ------------ ------------
See Accompanying Notes to Financial Statements
136-137 Spread
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
COLUMBIA FUNDS
FOR THE PERIOD ENDED AUGUST 31, 2003 (a)
COMMON INTERNATIONAL MID CAP SMALL CAP
STOCK GROWTH STOCK GROWTH GROWTH
FUND FUND FUND FUND FUND
------------ ------------ ------------- ------------ ------------
NET REALIZED AND UNREALIZED GAIN
(LOSS)
ON INVESTMENTS, FOREIGN CURRENCY AND
FOREIGN CAPITAL GAINS TAX:
Net realized gain (loss) on:
Investments................................ $(10,351,264) $ 6,034,740 $ (4,703,618) $ 17,148,448 $ 29,590,977
Foreign currency transactions.............. -- -- 34,055 -- --
------------ ------------ ------------- ------------ ------------
Net realized gain (loss)................ (10,351,264) 6,034,740 (4,669,563) 17,148,448 29,590,977
------------ ------------ ------------- ------------ ------------
Change in net unrealized appreciation
/depreciation on:
Investments................................ 70,348,296 138,988,772 33,308,489 179,938,855 124,510,064
Foreign currency translations.............. -- -- (121,751) -- --
Foreign capital gains tax.................. -- -- (373,255) -- --
------------ ------------ ------------- ------------ ------------
Net change in net unrealized
appreciation/depreciation................ 70,348,296 138,988,772 32,813,483 179,938,855 124,510,064
------------ ------------ ------------- ------------ ------------
Net gain (loss).................................. 59,997,032 145,023,512 28,143,920 197,087,303 154,101,041
------------ ------------ ------------- ------------ ------------
NET INCREASE RESULTING FROM OPERATIONS .......... $ 61,503,469 $144,955,631 $ 29,429,531 $192,198,275 $150,342,864
============ ============ ============= ============ ============
REAL ESTATE STRATEGIC SHORT TERM
EQUITY TECHNOLOGY INVESTOR BALANCED BOND
FUND FUND FUND FUND FUND
------------ ----------- ------------ ------------ ------------
NET REALIZED AND UNREALIZED GAIN
(LOSS)
ON INVESTMENTS, FOREIGN CURRENCY AND
FOREIGN CAPITAL GAINS TAX:
Net realized gain (loss) on:
Investments................................ $ 8,176,522 $ 3,262,715 $ 1,251,311 $ (2,740,428) $ 1,411,670
Foreign currency transactions.............. -- -- 2,900 -- --
------------ ----------- ------------ ------------ ------------
Net realized gain (loss)................ 8,176,522 3,262,715 1,254,211 (2,740,428) 1,411,670
------------ ----------- ------------ ------------ ------------
Change in net unrealized appreciation
/depreciation on:
Investments................................ 124,974,925 2,813,873 47,456,926 58,617,792 (5,882,484)
Foreign currency translations.............. -- -- 75 -- --
Foreign capital gains tax.................. -- -- -- -- --
------------ ----------- ------------ ------------ ------------
Net change in net unrealized
appreciation/depreciation................ 124,974,925 2,813,873 47,457,001 58,617,792 (5,882,484)
------------ ----------- ------------ ------------ ------------
Net gain (loss).................................. 133,151,447 6,076,588 48,711,212 55,877,364 (4,470,814)
------------ ----------- ------------ ------------ ------------
NET INCREASE RESULTING FROM OPERATIONS .......... $149,769,896 $ 5,979,130 $ 50,001,311 $ 64,501,178 $ 2,843,539
============ =========== ============ ============ ============
FIXED NATIONAL OREGON
INCOME MUNICIPAL MUNICIPAL DAILY
SECURITIES BOND BOND HIGH YIELD INCOME
FUND FUND FUND FUND COMPANY
------------ ----------- ------------ ------------ ------------
NET REALIZED AND UNREALIZED GAIN
(LOSS)
ON INVESTMENTS, FOREIGN CURRENCY AND
FOREIGN CAPITAL GAINS TAX:
Net realized gain (loss) on:
Investments................................ $ 9,807,289 $ 56,187 $ 3,354,784 $ 2,667,555 $ --
Foreign currency transactions.............. -- -- -- -- --
------------ ----------- ------------ ------------ ------------
Net realized gain (loss)................ 9,807,289 56,187 3,354,784 2,667,555 --
------------ ----------- ------------ ------------ ------------
Change in net unrealized appreciation
/depreciation on:
Investments................................ (17,070,804) (330,997) (13,131,352) 7,100,037 --
Foreign currency translations.............. -- -- -- -- --
Foreign capital gains tax.................. -- -- -- -- --
------------ ----------- ------------ ------------ ------------
Net change in net unrealized
appreciation/depreciation................ (17,070,804) (330,997) (13,131,352) 7,100,037 --
------------ ----------- ------------ ------------ ------------
Net gain (loss).................................. (7,263,515) (274,810) (9,776,568) 9,767,592 --
------------ ----------- ------------ ------------ ------------
NET INCREASE RESULTING FROM OPERATIONS .......... $ 6,426,521 $ 155,213 $ 4,407,835 $ 59,946,742 $ 3,560,546
============ =========== ============ ============ ============
(a) The Funds have changed their fiscal year end from December 31 to August 31.
See Accompanying Notes to Financial Statements
138-139 Spread
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
COLUMBIA FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2002
COMMON INTERNATIONAL MID CAP SMALL CAP
STOCK GROWTH STOCK GROWTH GROWTH
FUND FUND FUND FUND FUND
------------ ------------ ------------- ------------ ------------
NET INVESTMENT INCOME:
INCOME:
Interest...................................... $ 229,515 $ 449,657 $ 114,715 $ 949,650 $ 681,219
Dividends .................................... 6,711,144 7,349,063 2,157,855 1,644,758 1,321,481
Foreign withholding tax....................... (18,265) (10,874) (91,099) (3,053) (2,089)
------------ ------------ ------------- ------------ ------------
Total income .............................. 6,922,394 7,787,846 2,181,471 2,591,355 2,000,611
------------ ------------ ------------- ------------ ------------
EXPENSES:
Investment management fee..................... 3,238,954 5,819,523 1,375,061 6,341,031 5,936,461
Distribution fee:
Class B.................................... 69 60 13,000 1,449 --
Class D.................................... 22 21 677 255 --
Class G.................................... -- 3,772 -- 274 --
Service fee:
Class A.................................... 1 486 7,932 165 --
Class B.................................... 23 20 4,334 483 --
Class D.................................... 7 7 226 85 --
Class G.................................... -- 4,689 -- 126 --
Class T.................................... -- -- -- 4,340 --
Transfer agent fee:
Class A.................................... 1 640 14,203 411 --
Class B.................................... 33 14 27,810 1,716 --
Class D.................................... 9 6 1,896 223 --
Class G.................................... -- 2,860 -- 365 --
Class T.................................... -- -- -- 7,348 --
Class Z.................................... 1,046,415 1,789,843 473,231 1,238,675 1,088,066
Pricing and bookkeeping fees.................. 59,296 64,564 45,673 48,716 41,111
Director's fees............................... 6,703 23,235 1,405 7,892 5,650
Custody fee................................... 57,599 89,652 117,990 58,398 119,978
Registration fee.............................. 28,103 59,990 24,550 96,632 48,305
Reports to shareholders....................... 120,051 218,259 60,152 129,814 41,000
Other expenses................................ 59,421 60,150 108,722 51,651 75,012
------------ ------------ ------------- ------------ ------------
Total Expenses............................. 4,616,707 8,137,791 2,276,862 7,990,049 7,355,583
Expenses reimbursed by Advisor................ -- -- -- -- --
Fees waived by Distributor:
Class D.................................... -- -- -- -- --
Fees waived by Advisor:
Class A.................................... -- -- -- (7) --
Class B.................................... -- -- (1,907) (232) --
Class D.................................... -- -- (677) (30) --
Class G.................................... -- -- -- -- --
Class T.................................... -- -- -- -- --
Class Z.................................... -- -- (28,388) (53,363) --
Custody earnings credit....................... (8,314) (15,433) (4,016) (8,834) (5,412)
------------ ------------ ------------- ------------ ------------
Net Expenses.................................. 4,608,393 8,122,358 2,241,874 7,927,583 7,350,171
------------ ------------ ------------- ------------ ------------
NET INVESTMENT INCOME (LOSS) .................... 2,314,001 (334,512) (60,403) (5,336,228) (5,349,560)
------------ ------------ ------------- ------------ ------------
REAL ESTATE STRATEGIC SHORT TERM
EQUITY TECHNOLOGY INVESTOR BALANCED BOND
FUND FUND FUND FUND FUND
------------ ---------- ------------ ------------ ------------
NET INVESTMENT INCOME:
INCOME:
Interest...................................... $ 930,645 $ 31,974 $ 1,027,689 $ 20,569,722 $ 4,691,435
Dividends .................................... 39,529,407 8,964 3,593,016 5,952,089 --
Foreign withholding tax....................... -- (31) (27,839) (18,441) --
------------ ---------- ------------ ------------ ------------
Total income .............................. 40,460,052 40,907 4,592,866 26,503,370 4,691,435
------------ ---------- ------------ ------------ ------------
EXPENSES:
Investment management fee..................... 5,602,888 98,750 2,087,191 4,095,196 506,173
Distribution fee:
Class B.................................... 594 1 2,732 309 3,368
Class D.................................... 252 1 443 269 3,336
Class G.................................... -- -- -- -- 771
Service fee:
Class A.................................... 146 1 21,940 18 877
Class B.................................... 198 1 911 103 1,123
Class D.................................... 84 1 148 90 1,113
Class G.................................... -- -- -- -- 178
Class T.................................... -- -- -- -- 2,924
Transfer agent fee:
Class A.................................... 461 1 11,499 20 1,019
Class B.................................... 617 1 2,822 116 1,342
Class D.................................... 262 1 342 100 1,229
Class G.................................... -- -- -- -- 848
Class T.................................... -- -- -- -- 14,198
Class Z.................................... 1,097,605 68,283 374,745 1,162,975 107,163
Pricing and bookkeeping fees.................. 56,126 29,778 30,577 83,151 34,964
Director's fees............................... 5,834 100 1,667 9,537 16,916
Custody fee................................... 46,397 16,384 62,349 73,391 12,842
Registration fee.............................. 79,025 13,477 35,326 27,365 48,629
Reports to shareholders....................... 109,881 21,065 41,058 187,492 25,448
Other expenses................................ 69,201 32,788 52,893 79,594 --
------------ ---------- ------------ ------------ ------------
Total Expenses............................. 7,069,571 280,633 2,726,643 5,719,726 784,461
Expenses reimbursed by Advisor................ -- (116,580) -- -- (23,013)
Fees waived by Distributor:
Class D.................................... -- -- -- -- (2,670)
Fees waived by Advisor:
Class A.................................... -- -- -- -- --
Class B.................................... -- -- (838) -- --
Class D.................................... -- -- (89) -- --
Class G.................................... -- -- -- -- --
Class T.................................... -- -- -- -- --
Class Z.................................... -- -- (10,434) -- --
Custody earnings credit....................... (4,979) (578) (2,643) (10,542) (3,853)
------------ ---------- ------------ ------------ ------------
Net Expenses.................................. 7,064,592 163,475 2,712,639 5,709,184 754,925
------------ ---------- ------------ ------------ ------------
NET INVESTMENT INCOME (LOSS) .................... 33,395,460 (122,568) 1,880,227 20,794,186 3,936,510
------------ ---------- ------------ ------------ ------------
FIXED NATIONAL OREGON
INCOME MUNICIPAL MUNICIPAL DAILY
SECURITIES BOND BOND HIGH YIELD INCOME
FUND FUND FUND FUND COMPANY
------------ ----------- ------------ ------------ ------------
NET INVESTMENT INCOME:
INCOME:
Interest...................................... $ 27,993,729 $ 700,337 $ 25,331,023 $ 32,819,203 $ 21,497,684
Dividends .................................... -- -- -- -- --
Foreign withholding tax....................... -- -- -- (66,207) --
------------ ----------- ------------ ------------ ------------
Total income .............................. 27,993,729 700,337 25,331,023 32,752,996 21,497,684
------------ ----------- ------------ ------------ ------------
EXPENSES:
Investment management fee..................... 2,477,847 73,374 2,513,517 2,629,803 5,671,913
Distribution fee:
Class B.................................... 716 45 285 9,437 --
Class D.................................... 250 35 378 9,091 --
Class G.................................... -- -- -- -- --
Service fee:
Class A.................................... 94 12 68 4,520 --
Class B.................................... 239 15 95 3,146 --
Class D.................................... 83 12 126 3,030 --
Class G.................................... -- -- -- -- --
Class T.................................... -- -- -- -- --
Transfer agent fee:
Class A.................................... 3 7 35 8,345 --
Class B.................................... 8 9 51 5,748 --
Class D.................................... 3 6 70 5,325 --
Class G.................................... -- -- -- -- --
Class T.................................... -- -- -- -- --
Class Z.................................... 530,899 6,676 231,748 444,304 1,167,436
Pricing and bookkeeping fees.................. 55,757 32,316 62,828 50,847 42,461
Director's fees............................... 14,310 5,227 659 2,502 11,916
Custody fee................................... 40,354 3,213 25,443 29,635 213,473
Registration fee.............................. 68,241 8,610 13,838 68,721 38,542
Reports to shareholders....................... 38,656 11,766 26,933 46,856 198,555
Other expenses................................ 100,130 27,747 50,598 61,857 48,626
------------ ----------- ------------ ------------ ------------
Total Expenses............................. 3,327,590 169,070 2,926,672 3,383,167 7,392,922
Expenses reimbursed by Advisor................ -- (70,759) -- -- --
Fees waived by Distributor:
Class D.................................... (50) (16) (176) (1,818) --
Fees waived by Advisor:
Class A.................................... -- -- -- -- --
Class B.................................... -- -- -- -- --
Class D.................................... -- -- -- -- --
Class G.................................... -- -- -- -- --
Class T.................................... -- -- -- -- --
Class Z.................................... -- -- -- -- --
Custody earnings credit....................... (4,380) (1,370) (8,814) (5,818) (37,293)
------------ ----------- ------------ ------------ ------------
Net Expenses.................................. 3,323,160 96,925 2,917,682 3,375,531 7,355,629
------------ ----------- ------------ ------------ ------------
NET INVESTMENT INCOME (LOSS) .................... 24,670,569 603,412 22,413,341 29,377,465 14,142,055
------------ ----------- ------------ ------------ ------------
See Accompanying Notes to Financial Statements
140-141 Spread
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
COLUMBIA FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2002
COMMON INTERNATIONAL MID CAP SMALL CAP
STOCK GROWTH STOCK GROWTH GROWTH
FUND FUND FUND FUND FUND
------------- ------------ ------------- ------------- -------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS, FOREIGN CURRENCY AND
FOREIGN CAPITAL GAINS TAX:
Net realized gain (loss) on:
Investments ................................. $ (76,671,127) $(234,361,212) $ (16,827,005) $ (89,710,944) $(116,601,064)
Foreign currency transactions .............. -- -- 459,446 -- --
Foreign capital gains tax ................... -- -- (83,377) -- --
------------- ------------- ------------- ------------- -------------
Net realized gain (loss) .................. (76,671,127) (234,361,212) (16,450,936) (89,710,944) (116,601,064)
------------- ------------- ------------- ------------- -------------
Change in net unrealized appreciation
/depreciation on:
Investments ................................. (87,529,297) (189,831,805) (5,185,756) (104,900,709) (70,989,821)
Foreign currency translations ............... -- -- 40,189 -- --
------------- ------------- ------------- ------------- -------------
Net change in net unrealized
appreciation or depreciation.............. (87,529,297) (189,831,805) (5,145,567) (104,900,709) (70,989,821)
------------- ------------- ------------- ------------- -------------
Net gain (loss) ................................ (164,200,424) (424,193,017) (21,596,503) (194,611,653) (187,590,885)
------------- ------------- ------------- ------------- -------------
NET INCREASE (DECREASE) RESULTING
FROM OPERATIONS .............................. $(161,886,423) $(424,527,529) $ (21,656,906) $(199,947,881) $(192,940,445)
============= ============= ============= ============= =============
REAL ESTATE STRATEGIC SHORT TERM
EQUITY TECHNOLOGY INVESTOR BALANCED BOND
FUND FUND FUND FUND FUND
------------ ----------- ------------- ------------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS, FOREIGN CURRENCY AND
FOREIGN CAPITAL GAINS TAX:
Net realized gain (loss) on:
Investments ................................. $(12,684,181) $(4,188,861) $ (27,776,699) $ (71,176,504) $ (5,253)
Foreign currency transactions .............. -- -- (81) -- --
Foreign capital gains tax ................... -- -- -- -- --
------------ ----------- ------------- ------------- ------------
Net realized gain (loss) .................. (12,684,181) (4,188,861) (27,776,780) (71,176,504) (5,253)
------------ ----------- ------------- ------------- ------------
Change in net unrealized appreciation
/depreciation on:
Investments ................................. (5,589,540) (748,526) (13,657,736) (68,893,518) 2,802,185
Foreign currency translations ............... -- -- (151) -- --
------------ ----------- ------------- ------------- ------------
Net change in net unrealized
appreciation or depreciation.............. (5,589,540) (748,526) (13,657,887) (68,893,518) 2,802,185
------------ ----------- ------------- ------------- ------------
Net gain (loss) ................................ (18,273,721) (4,937,387) (41,434,667) (140,070,022) 2,796,932
------------ ----------- ------------- ------------- ------------
NET INCREASE (DECREASE) RESULTING
FROM OPERATIONS .............................. $ 15,121,739 $(5,059,955) $ (39,554,440) $(119,275,836) $ 6,733,442
============ =========== ============= ============= ============
FIXED NATIONAL OREGON
INCOME MUNICIPAL MUNICIPAL DAILY
SECURITIES BOND BOND HIGH YIELD INCOME
FUND FUND FUND FUND COMPANY
------------ ----------- ------------ ------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS, FOREIGN CURRENCY AND
FOREIGN CAPITAL GAINS TAX:
Net realized gain (loss) on:
Investments ................................. $ (2,558,516) $ 88,597 $ 3,932,577 $(27,771,338) $ --
Foreign currency transactions .............. -- -- -- -- --
Foreign capital gains tax ................... -- -- -- -- --
------------ ----------- ------------ ------------ ------------
Net realized gain (loss) .................. (2,558,516) 88,597 3,932,577 (27,771,338) --
------------ ----------- ------------ ------------ ------------
Change in net unrealized appreciation
/depreciation on:
Investments ................................. 14,601,556 631,224 17,775,246 9,777,957 --
Foreign currency translations ............... -- -- -- -- --
------------ ----------- ------------ ------------ ------------
Net change in net unrealized
appreciation or depreciation.............. 14,601,556 631,224 17,775,246 9,777,957 --
------------ ----------- ------------ ------------ ------------
Net gain (loss) ................................ 12,043,040 719,821 21,707,823 (17,993,381) --
------------ ----------- ------------ ------------ ------------
NET INCREASE (DECREASE) RESULTING
FROM OPERATIONS .............................. $ 36,713,609 $ 1,323,233 $ 44,121,164 $ 11,384,084 $ 14,142,055
============ =========== ============ ============ ============
See Accompanying Notes to Financial Statements
142-143 Spread
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
COLUMBIA FUNDS
COMMON STOCK FUND
-----------------------------------------------
PERIOD YEAR YEAR
ENDED ENDED ENDED
AUGUST 31, DECEMBER 31, DECEMBER 31,
2003 (a) 2002 (b) 2001
------------- ------------- -------------
OPERATIONS:
Net investment income (loss)..................................... $ 1,506,437 $ 2,314,001 $ 2,393,365
Net realized gain (loss) on investments, foreign currency
transactions and foreign capital gains tax.................... (10,351,264) (76,671,127) (53,093,579)
Net change in unrealized appreciation/depreciation
on investments, foreign currency translations
and foreign capital gains tax................................. 70,348,296 (87,529,297) (104,551,117)
-------------- -------------- -------------
Net increase (decrease) resulting from operations................ 61,503,469 (161,886,423) (155,251,331)
-------------- -------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A....................................................... -- (24) --
Class B....................................................... -- (365) --
Class D....................................................... -- (105) --
Class Z....................................................... -- (2,325,116) (2,384,042)
From net realized gains:
Class Z....................................................... -- -- (568,973)
Return of capital:
Class Z....................................................... -- -- --
-------------- -------------- -------------
Total distributions to shareholders.............................. -- (2,325,610) (2,953,015)
-------------- -------------- -------------
NET CAPITAL SHARE TRANSACTIONS...................................... (49,688,127) (100,375,770) (55,532,294)
-------------- -------------- -------------
REDEMPTION FEES..................................................... -- -- --
-------------- -------------- -------------
Net increase (decrease) in net assets............................... 11,815,342 (264,587,803) (213,736,640)
NET ASSETS:
Beginning of period.............................................. 416,809,376 681,397,179 895,133,819
-------------- -------------- -------------
End of period................................................... $ 428,624,718 $ 416,809,376 $ 681,397,179
============== ============== =============
Undistributed (overdistributed) net investment income
at end of period................................................ $ 1,506,446 $ -- $ 6,772
============== ============== =============
GROWTH FUND
-------------------------------------------------
PERIOD YEAR YEAR
ENDED ENDED ENDED
AUGUST 31, DECEMBER 31, DECEMBER 31,
2003 (a) 2002 (c) 2001
------------- ------------- --------------
OPERATIONS:
Net investment income (loss)..................................... $ (67,881) $ (334,512) $ (1,006,495)
Net realized gain (loss) on investments, foreign currency
transactions and foreign capital gains tax.................... 6,034,740 (234,361,212) (197,532,848)
Net change in unrealized appreciation/depreciation
on investments, foreign currency translations
and foreign capital gains tax................................. 138,988,772 (189,831,805) (197,525,517)
------------- -------------- --------------
Net increase (decrease) resulting from operations................ 144,955,631 (424,527,529) (396,064,860)
------------- -------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A....................................................... -- -- --
Class B....................................................... -- -- --
Class D....................................................... -- -- --
Class Z....................................................... -- -- --
From net realized gains:
Class Z....................................................... -- -- (6,365,332)
Return of capital:
Class Z....................................................... -- -- --
------------- -------------- --------------
Total distributions to shareholders.............................. -- -- (6,365,332)
------------- -------------- --------------
NET CAPITAL SHARE TRANSACTIONS...................................... (43,866,493) (72,669,754) (190,952,344)
------------- -------------- --------------
REDEMPTION FEES..................................................... -- -- --
------------- -------------- --------------
Net increase (decrease) in net assets............................... 101,089,138 (497,197,283) (593,382,536)
NET ASSETS:
Beginning of period.............................................. 828,647,114 1,325,844,397 1,919,226,933
------------- -------------- --------------
End of period................................................... $ 929,736,252 $ 828,647,114 $1,325,844,397
============= ============== ==============
Undistributed (overdistributed) net investment income
at end of period................................................ $ (1,289) $ -- $ --
============= ============== ==============
INTERNATIONAL STOCK FUND
------------------------------------------------
PERIOD YEAR YEAR
ENDED ENDED ENDED
AUGUST 31, DECEMBER 31, DECEMBER 31,
2003 (a) 2002 (b) 2001
------------- ------------- -------------
OPERATIONS:
Net investment income (loss)..................................... $ 1,285,611 $ (60,403) $ 95,519
Net realized gain (loss) on investments, foreign currency
transactions and foreign capital gains tax.................... (4,669,563) (16,450,936) (25,454,741)
Net change in unrealized appreciation/depreciation
on investments, foreign currency translations
and foreign capital gains tax................................. 32,813,483 (5,145,567) (7,034,708)
------------- ------------- -------------
Net increase (decrease) resulting from operations................ 29,429,531 (21,656,906) (32,393,930)
------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A....................................................... -- -- --
Class B....................................................... -- -- --
Class D....................................................... -- -- --
Class Z....................................................... -- (102,850) --
From net realized gains:
Class Z....................................................... -- -- --
Return of capital:
Class Z....................................................... -- (403,799) (131,448)
------------- -------------- -------------
Total distributions to shareholders.............................. -- (506,649) (131,448)
------------- -------------- -------------
NET CAPITAL SHARE TRANSACTIONS...................................... 76,764,211 61,510,684 (7,165,160)
------------- ------------- -------------
REDEMPTION FEES..................................................... 164,843 -- --
------------- ------------- -------------
Net increase (decrease) in net assets............................... 106,358,585 39,347,129 (39,690,538)
NET ASSETS:
Beginning of period.............................................. 174,972,974 135,625,845 175,316,383
------------- ------------- -------------
End of period................................................... $ 281,331,559 $ 174,972,974 $ 135,625,845
============= ============= =============
Undistributed (overdistributed) net investment income
at end of period................................................ $ 1,284,980 $ (14,405) $ (298,209)
============= ============= =============
MID CAP GROWTH FUND
-------------------------------------------------
PERIOD YEAR YEAR
ENDED ENDED ENDED
AUGUST 31, DECEMBER 31, DECEMBER 31,
2003 (a) 2002 (d) 2001
-------------- ------------- --------------
OPERATIONS:
Net investment income (loss)..................................... $ (4,889,028) $ (5,336,228) $ (4,280,083)
Net realized gain (loss) on investments, foreign currency
transactions and foreign capital gains tax.................... 17,148,448 (89,710,944) (128,113,140)
Net change in unrealized appreciation/depreciation
on investments, foreign currency translations
and foreign capital gains tax................................. 179,938,855 (104,900,709) (102,085,000)
-------------- ------------- --------------
Net increase (decrease) resulting from operations................ 192,198,275 (199,947,881) (234,478,223)
-------------- ------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A....................................................... -- -- --
Class B....................................................... -- -- --
Class D....................................................... -- -- --
Class Z....................................................... -- -- --
From net realized gains:
Class Z....................................................... -- -- (36,110,869)
Return of capital:
Class Z....................................................... -- -- --
-------------- ------------- --------------
Total distributions to shareholders.............................. -- -- (36,110,869)
-------------- ------------- --------------
NET CAPITAL SHARE TRANSACTIONS...................................... 7,917,882 252,934,343 (38,864,440)
-------------- ------------- --------------
REDEMPTION FEES..................................................... -- -- --
-------------- ------------- --------------
Net increase (decrease) in net assets............................... 200,116,157 52,986,462 (309,453,532)
NET ASSETS:
Beginning of period.............................................. 839,057,696 786,071,234 1,095,524,766
-------------- ------------- --------------
End of period................................................... $1,039,173,853 $ 839,057,696 $ 786,071,234
============== ============= ==============
Undistributed (overdistributed) net investment income
at end of period................................................ $ (2,185) $ (3,410) $ --
============== ============= ==============
SMALL CAP GROWTH FUND
-------------------------------------------------
PERIOD YEAR YEAR
ENDED ENDED ENDED
AUGUST 31, DECEMBER 31, DECEMBER 31,
2003 (a) 2002 2001
-------------- ------------- --------------
OPERATIONS:
Net investment income (loss)..................................... $ (3,758,177) $ (5,349,560) $ (3,669,866)
Net realized gain (loss) on investments, foreign currency
transactions and foreign capital gains tax.................... 29,590,977 (116,601,064) (102,071,551)
Net change in unrealized appreciation/depreciation
on investments, foreign currency translations
and foreign capital gains tax................................. 124,510,064 (70,989,821) 29,412,742
-------------- ------------- --------------
Net increase (decrease) resulting from operations................ 150,342,864 (192,940,445) (76,328,675)
-------------- ------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A....................................................... -- -- --
Class B....................................................... -- -- --
Class D....................................................... -- -- --
Class Z....................................................... -- -- --
From net realized gains:
Class Z....................................................... -- -- --
Return of capital:
Class Z....................................................... -- -- --
-------------- ------------- --------------
Total distributions to shareholders.............................. -- -- --
-------------- ------------- --------------
NET CAPITAL SHARE TRANSACTIONS...................................... (5,758,359) 68,005,564 175,324,624
-------------- ------------- --------------
REDEMPTION FEES..................................................... -- -- --
-------------- ------------- --------------
Net increase (decrease) in net assets............................... 144,584,505 (124,934,881) 98,995,949
NET ASSETS:
Beginning of period.............................................. 493,031,068 617,965,949 518,970,000
-------------- ------------- --------------
End of period................................................... $ 637,615,573 $ 493,031,068 $ 617,965,949
============== ============= ==============
Undistributed (overdistributed) net investment income
at end of period................................................ $ 180,997 $ 180,997 $ --
============== ============= ==============
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) 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.
(c) 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.
(d) 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
144-145 Spread
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
COLUMBIA FUNDS
REAL ESTATE EQUITY FUND
------------------------------------------------
PERIOD YEAR YEAR
ENDED ENDED ENDED
AUGUST 31, DECEMBER 31, DECEMBER 31,
2003 (a) 2002 (b) 2001
-------------- ------------- -------------
OPERATIONS:
Net investment income (loss) ..................................... $ 16,618,449 $ 33,395,460 $ 23,283,934
Net realized gain (loss) on investments and foreign
currency transactions ........................................... 8,176,522 (12,684,181) (6,107,580)
Net change in unrealized appreciation/depreciation
on investments and foreign currency translations ................ 124,974,925 (5,589,540) 11,518,503
-------------- ------------- -------------
Net increase (decrease) resulting from operations ................ 149,769,896 15,121,739 28,694,857
-------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A ....................................................... (64,007) (11,804) --
Class B ....................................................... (26,629) (12,009) --
Class D ....................................................... (18,629) (4,519) --
Class G ....................................................... -- -- --
Class T ....................................................... -- -- --
Class Z ....................................................... (11,791,170) (29,889,702) (21,221,990)
From net realized gains:
Class Z ....................................................... -- -- --
Return of capital:
Class Z ....................................................... -- (3,915,328) (2,074,000)
-------------- ------------- -------------
Total distributions to shareholders .............................. (11,900,435) (33,833,362) (23,295,990)
-------------- ------------- -------------
NET CAPITAL SHARE TRANSACTIONS ..................................... (9,506,449) 174,112,297 179,426,753
-------------- ------------- -------------
Net increase (decrease) in net assets .............................. 128,363,012 155,400,674 184,825,620
NET ASSETS:
Beginning of period .............................................. 776,990,508 621,589,834 436,764,214
-------------- ------------- -------------
End of period .................................................... $ 905,353,520 $ 776,990,508 $ 621,589,834
============== ============= =============
Undistributed (overdistributed) net investment income
at end of period .................................................. $ 4,718,014 $ 5,750,071 $ --
============== ============= =============
TECHNOLOGY FUND
------------------------------------------------
PERIOD YEAR YEAR
ENDED ENDED ENDED
AUGUST 31, DECEMBER 31, DECEMBER 31,
2003 (a) 2002 (b) 2001
------------ ------------ -------------
OPERATIONS:
Net investment income (loss) ..................................... $ (97,458) $ (122,568) $ (129,446)
Net realized gain (loss) on investments and foreign
currency transactions .......................................... 3,262,715 (4,188,861) (4,781,663)
Net change in unrealized appreciation/depreciation
on investments and foreign currency translations ............... 2,813,873 (748,526) 1,379,718
------------ ------------ ------------
Net increase (decrease) resulting from operations ................ 5,979,130 (5,059,955) (3,531,391)
------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A ....................................................... -- -- --
Class B ....................................................... -- -- --
Class D ....................................................... -- -- --
Class G ....................................................... -- -- --
Class T ....................................................... -- -- --
Class Z ....................................................... -- -- --
From net realized gains:
Class Z ....................................................... -- -- --
Return of capital:
Class Z ....................................................... -- -- --
------------ ------------ ------------
Total distributions to shareholders ............................ -- -- --
------------ ------------ ------------
NET CAPITAL SHARE TRANSACTIONS .................................... 7,256,837 2,738,412 9,588,998
------------ ------------ ------------
Net increase (decrease) in net assets ............................. 13,235,967 (2,321,543) 6,057,607
NET ASSETS:
Beginning of period .............................................. 8,063,520 10,385,063 4,327,456
------------ ------------ ------------
End of period ................................................... $ 21,299,487 $ 8,063,520 $ 10,385,063
============ ============ ============
Undistributed (overdistributed) net investment income
at end of period .................................................. $ -- $ -- $ --
============ ============ ============
STRATEGIC INVESTOR FUND
------------------------------------------------
PERIOD YEAR YEAR
ENDED ENDED ENDED
AUGUST 31, DECEMBER 31, DECEMBER 31,
2003 (a) 2002 (b) 2001
------------ ------------ -------------
OPERATIONS:
Net investment income (loss) ..................................... $ 1,290,099 $ 1,880,227 $ 513,914
Net realized gain (loss) on investments and foreign
currency transactions .......................................... 1,254,211 (27,776,780) (39,305)
Net change in unrealized appreciation/depreciation
on investments and foreign currency translations ............... 47,457,001 (13,657,887) 14,416,240
------------ ------------ -------------
Net increase (decrease) resulting from operations ................ 50,001,311 (39,554,440) 14,890,849
------------ ------------ -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A ........................................................ -- -- --
Class B ........................................................ -- -- --
Class D ........................................................ -- -- --
Class G ........................................................ -- -- --
Class T ........................................................ -- -- --
Class Z ........................................................ -- (1,839,312) (503,110)
From net realized gains:
Class Z ........................................................ -- (376,144) --
Return of capital:
Class Z ........................................................ -- -- --
------------ ------------ -------------
Total distributions to shareholders .............................. -- (2,215,456) (503,110)
------------ ------------ -------------
NET CAPITAL SHARE TRANSACTIONS ..................................... (24,174,510) 168,107,411 115,589,966
------------ ------------ -------------
Net increase (decrease) in net assets .............................. 25,826,801 126,337,515 129,977,705
NET ASSETS:
Beginning of period .............................................. 265,841,220 139,503,705 9,526,000
------------ ------------ -------------
End of period .................................................... $291,668,021 $265,841,220 $ 139,503,705
============ ============ =============
Undistributed (overdistributed) net investment income
at end of period ................................................. $ 1,354,437 $ 62,338 $ 1,192
============ ============ =============
BALANCED FUND
--------------------------------------------------
PERIOD YEAR YEAR
ENDED ENDED ENDED
AUGUST 31, DECEMBER 31, DECEMBER 31,
2003 (a) 2002 (b) 2001
------------ ------------ ---------------
OPERATIONS:
Net investment income (loss) ..................................... $ 8,623,814 $ 20,794,186 $ 27,848,891
Net realized gain (loss) on investments and foreign
currency transactions .......................................... (2,740,428) (71,176,504) (61,040,549)
Net change in unrealized appreciation/depreciation
on investments and foreign currency translations ............... 58,617,792 (68,893,518) (51,965,235)
------------- ------------- ---------------
Net increase (decrease) resulting from operations ................ 64,501,178 (119,275,836) (85,156,893)
------------- ------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A ........................................................ (2,855) (693) --
Class B ........................................................ (8,639) (2,254) --
Class D ........................................................ (2,920) (1,798) --
Class G ........................................................ -- -- --
Class T ........................................................ -- -- --
Class Z ........................................................ (6,954,163) (21,201,650) (28,272,449)
From net realized gains:
Class Z ........................................................ -- -- --
Return of capital:
Class Z ........................................................ -- -- --
------------- ------------- ---------------
Total distributions to shareholders .............................. (6,968,577) (21,206,395) (28,272,449)
------------- ------------- ---------------
NET CAPITAL SHARE TRANSACTIONS ..................................... (81,831,327) (173,776,980) (29,677,522)
------------- ------------- ---------------
Net increase (decrease) in net assets .............................. (24,298,726) (314,259,211) (143,106,864)
NET ASSETS:
Beginning of period .............................................. 669,490,083 983,749,294 1,126,856,158
------------- ------------- ---------------
End of period .................................................... $ 645,191,357 $ 669,490,083 $ 983,749,294
============= ============= ===============
Undistributed (overdistributed) net investment income
at end of period .................................................. $ 1,622,249 $ (355,183) $ (423,558)
============= ============= ===============
SHORT TERM BOND FUND
------------------------------------------------
PERIOD YEAR YEAR
ENDED ENDED ENDED
AUGUST 31, DECEMBER 31, DECEMBER 31,
2003 (a) 2002 (c) 2001
------------- ------------- -------------
OPERATIONS:
Net investment income (loss) ..................................... $ 7,314,353 $ 3,936,510 $ 2,396,760
Net realized gain (loss) on investments and foreign
currency transactions .......................................... 1,411,670 (5,253) 622,536
Net change in unrealized appreciation/depreciation
on investments and foreign currency translations ............... (5,882,484) 2,802,185 94,561
------------- ------------- -------------
Net increase (decrease) resulting from operations ................ 2,843,539 6,733,442 3,113,857
------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A ........................................................ (300,551) (7,886) --
Class B ........................................................ (163,965) (6,548) --
Class D ........................................................ (153,332) (9,865) --
Class G ........................................................ (19,560) (2,198) --
Class T ........................................................ (449,409) (48,546) --
Class Z ........................................................ (6,343,155) (3,843,068) (2,396,760)
From net realized gains:
Class Z ........................................................ -- (18,783) (107,979)
Return of capital:
Class Z ........................................................ -- -- --
------------- ------------- -------------
Total distributions to shareholders .............................. (7,429,972) (3,936,894) (2,504,739)
------------- ------------- -------------
NET CAPITAL SHARE TRANSACTIONS ..................................... 186,414,680 301,621,677 26,464,147
------------- ------------- -------------
Net increase (decrease) in net assets .............................. 181,828,247 304,418,225 27,073,265
NET ASSETS:
Beginning of period .............................................. 367,347,830 62,929,605 35,856,340
------------- ------------- -------------
End of period .................................................... $ 549,176,077 $ 367,347,830 $ 62,929,605
============= ============= =============
Undistributed (overdistributed) net investment income
at end of period .................................................. $ 5,674 $ (204,761) $ --
============= ============= =============
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) 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.
(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
146-147 Spread
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
COLUMBIA FUNDS
FIXED INCOME SECURITIES FUND
------------------------------------------------
PERIOD YEAR YEAR
ENDED ENDED ENDED
AUGUST 31, DECEMBER 31, DECEMBER 31,
2003 (a) 2002 (b) 2001
-------------- ------------- -------------
OPERATIONS:
Net investment income............................................. $ 13,690,036 $ 24,670,569 $ 24,965,892
Net realized gain (loss) on investments .......................... 9,807,289 (2,558,516) 6,420,005
Net change in unrealized appreciation/depreciation
on investments ................................................. (17,070,804) 14,601,556 1,195,478
-------------- ------------- -------------
Net increase resulting from operations ........................... 6,426,521 36,713,609 32,581,375
-------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A ........................................................ (81,788) (1,157) --
Class B ........................................................ (56,382) (2,638) --
Class D ........................................................ (34,961) (1,013) --
Class Z ........................................................ (14,154,256) (25,339,044) (25,535,189)
From net realized gains:
Class A......................................................... -- -- --
Class B......................................................... -- -- --
Class D......................................................... -- -- --
Class Z......................................................... -- -- --
-------------- ------------- -------------
Total distributions to shareholders .............................. (14,327,387) (25,343,852) (25,535,189)
-------------- ------------- -------------
NET CAPITAL SHARE TRANSACTIONS ..................................... (21,870,137) 73,248,344 79,897,819
-------------- ------------- -------------
Net increase (decrease) in net assets .............................. (29,771,003) 84,618,101 86,944,005
NET ASSETS:
Beginning of period ............................................. 550,361,600 465,743,499 378,799,494
-------------- ------------- -------------
End of period.................................................... $ 520,590,597 $ 550,361,600 $ 465,743,499
============== ============= =============
Undistributed (overdistributed) net investment income
at end of period................................................. $ (760,011) $ (885,594) $ (569,297)
============== ============= =============
NATIONAL MUNICIPAL BOND FUND
-----------------------------------------------
PERIOD YEAR YEAR
ENDED ENDED ENDED
AUGUST 31, DECEMBER 31, DECEMBER 31,
2003 (a) 2002 (b) 2001
------------ ------------ ------------
OPERATIONS:
Net investment income............................................. $ 430,023 $ 603,412 $ 531,656
Net realized gain (loss) on investments .......................... 56,187 88,597 83,654
Net change in unrealized appreciation/depreciation
on investments ................................................. (330,997) 631,224 (163,394)
------------ ------------ ------------
Net increase resulting from operations ........................... 155,213 1,323,233 451,916
------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A ........................................................ (6,156) (200) --
Class B ........................................................ (7,532) (232) --
Class D ........................................................ (5,576) (147) --
Class Z ........................................................ (413,051) (598,784) (533,303)
From net realized gains:
Class A......................................................... (310) (230) --
Class B......................................................... (477) (784) --
Class D......................................................... (337) (220) --
Class Z......................................................... (12,706) (66,172) (25,261)
------------ ------------ ------------
Total distributions to shareholders .............................. (446,145) (666,769) (558,564)
------------ ------------ ------------
NET CAPITAL SHARE TRANSACTIONS ..................................... (584,781) 2,233,945 2,977,494
------------ ------------ ------------
Net increase (decrease) in net assets .............................. (875,713) 2,890,409 2,870,846
NET ASSETS:
Beginning of period ............................................. 16,659,255 13,768,846 10,898,000
------------ ------------ ------------
End of period.................................................... $ 15,783,542 $ 16,659,255 $ 13,768,846
============ ============ ============
Undistributed (overdistributed) net investment income
at end of period................................................. $ 2,584 $ 4,896 $ (1,647)
============ ============ ============
OREGON MUNICIPAL BOND FUND
-----------------------------------------------
PERIOD YEAR YEAR
ENDED ENDED ENDED
AUGUST 31, DECEMBER 31, DECEMBER 31,
2003 (a) 2002 (b) 2001
------------- ------------ -------------
OPERATIONS:
Net investment income............................................. $ 14,184,403 $ 22,413,341 $ 22,217,485
Net realized gain (loss) on investments .......................... 3,354,784 3,932,577 2,447,215
Net change in unrealized appreciation/depreciation
on investments ................................................. (13,131,352) 17,775,246 (3,897,358)
------------- ------------ -------------
Net increase resulting from operations ........................... 4,407,835 44,121,164 20,767,342
------------- ------------ -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A ........................................................ (24,517) (932) --
Class B ........................................................ (14,008) (1,094) --
Class D ........................................................ (15,469) (1,673) --
Class Z ........................................................ (14,116,676) (22,348,370) (22,200,818)
From net realized gains:
Class A......................................................... (1,127) (1,987) --
Class B......................................................... (532) (2,513) --
Class D......................................................... (496) (2,990) --
Class Z......................................................... (299,094) (5,015,648) (1,099,872)
------------- ------------ -------------
Total distributions to shareholders .............................. (14,471,919) (27,375,207) (23,300,690)
------------- ------------ -------------
NET CAPITAL SHARE TRANSACTIONS ..................................... (10,834,612) 1,779,138 57,627,221
------------- ------------ -------------
Net increase (decrease) in net assets .............................. (20,898,696) 18,525,095 55,093,873
NET ASSETS:
Beginning of period ............................................. 510,162,968 491,637,873 436,544,000
------------- ------------ -------------
End of period.................................................... $ 489,264,272 $510,162,968 $ 491,637,873
============= ============ =============
Undistributed (overdistributed) net investment income
at end of period................................................. $ 141,548 $ 131,976 $ 16,667
============= ============ =============
HIGH YIELD FUND
------------------------------------------------
PERIOD YEAR YEAR
ENDED ENDED ENDED
AUGUST 31, DECEMBER 31, DECEMBER 31,
2003 (a) 2002 (b) 2001
-------------- -------------- -------------
OPERATIONS:
Net investment income............................................. $ 50,179,150 $ 29,377,465 $ 13,585,926
Net realized gain (loss) on investments .......................... 2,667,555 (27,771,338) (6,978,717)
Net change in unrealized appreciation/depreciation
on investments ................................................. 7,100,037 9,777,957 2,694,000
-------------- -------------- -------------
Net increase resulting from operations ........................... 59,946,742 11,384,084 9,301,209
-------------- -------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A ........................................................ (4,682,562) (111,753) --
Class B ........................................................ (2,122,494) (63,166) --
Class D ........................................................ (2,591,969) (57,867) --
Class Z ........................................................ (44,079,371) (30,110,118) (13,865,815)
From net realized gains:
Class A......................................................... -- -- --
Class B......................................................... -- -- --
Class D......................................................... -- -- --
Class Z......................................................... -- -- --
-------------- -------------- -------------
Total distributions to shareholders .............................. (53,476,396) (30,342,904) (13,865,815)
-------------- -------------- -------------
NET CAPITAL SHARE TRANSACTIONS ..................................... 806,131,939 551,477,756 145,983,569
-------------- -------------- -------------
Net increase (decrease) in net assets .............................. 812,602,285 532,518,936 141,418,963
NET ASSETS:
Beginning of period ............................................. 771,512,777 238,993,841 97,574,878
-------------- -------------- -------------
End of period.................................................... $1,584,115,062 $ 771,512,777 $ 238,993,841
============== ============== =============
Undistributed (overdistributed) net investment income
at end of period................................................. $ (3,743,314) $ (989,027) $ (279,889)
============== ============== =============
DAILY INCOME FUND
--------------------------------------------------
PERIOD YEAR YEAR
ENDED ENDED ENDED
AUGUST 31, DECEMBER 31, DECEMBER 31,
2003 (a) 2002 2001
-------------- -------------- ---------------
OPERATIONS:
Net investment income............................................. $ 3,560,546 $ 14,142,055 $ 45,229,610
Net realized gain (loss) on investments .......................... -- -- --
Net change in unrealized appreciation/depreciation
on investments ................................................. -- -- --
-------------- -------------- ---------------
Net increase resulting from operations ........................... 3,560,546 14,142,055 45,229,610
-------------- -------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A ........................................................ -- -- --
Class B ........................................................ -- -- --
Class D ........................................................ -- -- --
Class Z ........................................................ (3,560,546) (14,142,055) (45,229,610)
From net realized gains:
Class A......................................................... -- -- --
Class B......................................................... -- -- --
Class D......................................................... -- -- --
Class Z......................................................... -- -- --
-------------- -------------- ---------------
Total distributions to shareholders .............................. (3,560,546) (14,142,055) (45,229,610)
-------------- -------------- ---------------
NET CAPITAL SHARE TRANSACTIONS ..................................... (237,911,017) (117,460,299) 55,384,628
-------------- -------------- ---------------
Net increase (decrease) in net assets .............................. (237,911,017) (117,460,299) 55,384,628
NET ASSETS:
Beginning of period ............................................. 1,136,074,898 1,253,535,197 1,198,150,569
-------------- -------------- ---------------
End of period.................................................... $ 898,163,881 $1,136,074,898 $ 1,253,535,197
============== ============== ===============
Undistributed (overdistributed) net investment income
at end of period................................................. $ -- $ -- $ --
============== ============== ===============
(a) The Fund has changed its fiscal year end from December 31 to August 31.
(b) 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.
See Accompanying Notes to Financial Statements
148-149 Spread
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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 Mid Cap Growth Fund
Columbia Small Cap Growth Fund
Columbia Real Estate Equity Fund
Columbia Technology Fund
Columbia Strategic Investor 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 October 13, 2003, the Columbia Special Fund, Columbia Small Cap Fund
and Columbia Strategic Value Fund were renamed Columbia Mid Cap Growth Fund,
Columbia Small Cap Growth Fund and Columbia Strategic Investor Fund,
respectively.
Effective November 1, 2002, each of the Funds, except the Columbia Growth
Fund, Columbia Mid Cap Growth Fund, Columbia Small Cap Growth 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 Growth
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 Mid Cap Growth 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.
Effective January 29, 2003, the Board of Directors approved a change in the
fiscal year end of the Funds from December 31 to August 31.
Class A and Class T shares are sold with a front-end sales charge. A 1.00%
contingent deferred sales charge ("CDSC") is assessed on redemptions made within
eighteen months of an original purchase of $1 million to $25 million of Class A
and Class T shares purchased without an initial sales charge. 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. Effective October 13, 2003, Class D shares are closed
to all new investors and new accounts. Existing Class D shareholders will be
able to make additional purchases at anytime. In addition, Class D sales charge
of 1.00% is waived after October 13, 2003.
Effective October 13, 2003, the Funds, excluding Columbia Small Cap Growth Fund
and Columbia Daily Income Company, began offering Class C shares.
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
150
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
Equity Fund ("LNIEF") merged into the Columbia International Stock Fund as
follows:
NET ASSETS
SHARES OF SRIF AND LNIEF UNREALIZED
ISSUED RECEIVED DEPRECIATION 1
------ -------- -------------
SRIF 1,426,029 $14,246,030 $(214,705)
LNIEF 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 LNIEF STOCK FUND
STOCK FUND IMMEDIATELY IMMEDIATELY
PRIOR TO PRIOR TO AFTER
COMBINATION COMBINATION COMBINATION
----------- ----------- -----------
$125,693,014 $46,214,202 $171,907,216
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 Mid Cap Growth 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 OF THE
OF THE NET ASSETS COLUMBIA
COLUMBIA OF LMCGF, MID CAP GROWTH
MID CAP GROWTH 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 Investor 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 INVESTOR FUND
INVESTOR 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 at the close of 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
151
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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. Investments in other investment companies are valued at net asset
value. Inflation indexed securities are fixed-income securities whose principal
value is periodically adjusted according to the rate of inflation. Interest is
accrued based on the principal value which is adjusted for inflation. Any
increase in the principal amount of an inflation indexed security is recorded as
interest income, even though the principal is not received until maturity.
Futures contracts are valued at the settlement price established each day by the
board or trade or exchange on which they are traded. 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 and the value of foreign securities
are generally determined prior to the close of the New York Stock Exchange.
Occasionally, events affecting the values of such securities and such 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 custodian, 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. The Columbia
Real Estate Equity Fund estimates the components of distributions from Real
Estate Investment Trusts (REIT). Distributions received in excess of income are
recorded as a reduction of cost of investments. Interest income is recorded on
the accrual basis and includes accretion of discounts, amortization of premiums
and paydown gains and losses. Awards from litigation are recorded as a reduction
of cost if the Funds still hold the affected securities on the payment date. If
the Funds no longer hold the affected securities, the proceeds are recorded as
realized gains. 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.
152
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
Effective January 1, 2003, the Columbia Real Estate Equity Fund adopted the
policy to reduce cost of investments for financial statement purposes by the
distributions received in excess of income from REIT. The cumulative effect of
this accounting change did not impact total net assets of the Fund, but resulted
in reclassifications as follows:
DECREASE IN
UNDISTRIBUTED
DECREASE NET INVESTMENT
IN COST INCOME
------- ------
$6,160,297 $6,160,297
The effect of this change for the eight months ended August 31, 2003 is as
follows:
DECREASE IN
DECREASE DIVIDEND
IN COST INCOME
------- ------
$2,246,875 $2,246,875
The Statements of Changes in Net Assets and Financial Highlights for prior
periods have not been restated to reflect this change.
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, based on net assets, 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 exchange
contracts are recorded for financial reporting purposes as unrealized gains or
losses. The Funds could be exposed to risks if counterparties to the forward
currency exchange 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 August 31, 2003, the Funds had no
outstanding forward currency exchange 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.
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 on 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. Such transactions are shown separately on the
Statement of Operations.
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 Mid Cap Growth Fund, Columbia Small Cap Growth Fund, Columbia
Technology Fund and Columbia Strategic Investor 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
153
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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.
REDEMPTION FEES. Effective February 15, 2003, the Columbia International Stock
Fund began imposing a 2.00% redemption fee to shareholders of Class Z shares who
redeem shares held for 60 days or less. For the period February 15, 2003 to
August 31, 2003, the redemption fee for Class Z shares amounted to $164,843.
This amount, which is retained by the Columbia International Stock Fund, is
accounted for as an addition to paid in capital. For the period February 15,
2003 through October 8, 2003, redemption fees were recorded as a component of
paid in capital on Class Z. Effective October 9, 2003, redemption fees are
allocated to paid in capital of each class proportionately for purposes of
determining the net asset value of each class.
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 Bond 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 exist as to an issuer's ability to meet
principal and interest payments.
154
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 2 -- INVESTMENT TRANSACTIONS
As of August 31, 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 ............... $ 73,444,358 $ (2,790,135) $ 70,654,223
Columbia Growth Fund ..................... 162,588,066 (7,003,194) 155,584,872
Columbia International Stock Fund ........ 37,170,396 (8,336,368) 28,834,028
Columbia Mid Cap Growth Fund ............. 217,648,225 (17,908,857) 199,739,368
Columbia Small Cap Growth Fund ........... 152,086,833 (9,274,944) 142,811,889
Columbia Real Estate Equity Fund ......... 194,605,827 (4,504,334) 190,101,493
Columbia Technology Fund ................. 3,325,392 (227,709) 3,097,683
Columbia Strategic Investor Fund ......... 43,402,303 (3,975,860) 39,426,443
Columbia Balanced Fund ................... 76,332,141 (4,494,084) 71,838,057
Columbia Short Term Bond Fund ............ 3,959,637 (2,895,371) 1,064,266
Columbia Fixed Income Securities Fund .... 11,487,145 (5,518,097) 5,969,048
Columbia National Municipal Bond Fund .... 505,744 (77,340) 428,404
Columbia Oregon Municipal Bond Fund ...... 17,214,989 (5,711,395) 11,503,594
Columbia High Yield Fund ................. 28,561,046 (16,147,532) 12,413,514
During the period ended August 31, 2003, purchases and sales of investments,
other than short-term obligations, were as follows:
PURCHASES SALES
------------- -------------
Columbia Common Stock Fund ............... $ 411,207,992 $ 455,849,482
Columbia Growth Fund ..................... 914,724,289 964,142,585
Columbia International Stock Fund ........ 162,615,631 85,811,841
Columbia Mid Cap Growth Fund ............. 687,055,191 640,676,807
Columbia Small Cap Growth Fund ........... 396,116,127 415,744,063
Columbia Real Estate Equity Fund ......... 253,903,291 256,710,211
Columbia Technology Fund ................. 63,517,029 59,172,657
Columbia Strategic Investor Fund ......... 148,199,990 197,513,103
Columbia Balanced Fund ................... 687,495,271 734,895,517
Columbia Short Term Bond Fund ............ 801,961,677 556,546,304
Columbia Fixed Income Securities Fund .... 874,088,708 853,771,894
Columbia National Municipal Bond Fund .... 2,076,479 1,954,604
Columbia Oregon Municipal Bond Fund ...... 51,024,705 59,109,771
Columbia High Yield Fund ................. 978,970,492 417,043,282
During the period ended August 31, 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 Investor Fund ......... 751,850 757,970
Columbia Balanced Fund ................... 255,254,301 263,475,568
Columbia Short Term Bond Fund ............ 37,046,902 65,041,640
Columbia Fixed Income Securities Fund .... 735,279,279 720,182,530
155
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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. These differences are primarily due to
differing treatments for deferral of losses from wash sales, discount
accretion/premium amortization on debt securities, straddle deferrals, current
year distribution payable, capital loss carryforwards, real estate investment
trust adjustments, foreign capital gains tax, net operating loss and
non-deductible expenses. Reclassifications are made to the Funds' capital
accounts to reflect income and gains available for distribution (or available
capital loss carryforwards) under income tax regulations.
For the period ended August 31, 2003, permanent items identified and
reclassified among the components of net assets are as follows:
UNDISTRIBUTED
(OVERDISTRIBUTED) ACCUMULATED
NET INVESTMENT NET REALIZED PAID-IN
INCOME GAIN (LOSS) CAPITAL
-------------- ------------ ------------
Columbia Common Stock Fund .............. $ 9 $ (9) $ --
Columbia Growth Fund .................... 66,592 -- (66,592)
Columbia International Stock Fund ....... 13,774 (23,730) 9,956
Columbia Mid Cap Growth Fund ............ 4,890,253 -- (4,890,253)
Columbia Small Cap Growth Fund .......... 3,758,177 -- (3,758,177)
Columbia Real Estate Equity Fund ........ 410,226 4,451,351 (4,861,577)
Columbia Technology Fund ................ 97,458 -- (97,458)
Columbia Strategic Investor Fund ........ 2,000 (2,901) 901
Columbia Balanced Fund .................. 322,195 (322,195) --
Columbia Short Term Bond Fund ........... 326,054 (89,440) (236,614)
Columbia Fixed Income Securities Fund ... 762,934 (762,934) --
Columbia National Municipal Bond Fund ... (20) 20 --
Columbia Oregon Municipal Bond Fund ..... (4,161) 4,161 --
Columbia High Yield Fund ................ 542,959 (542,959) --
Net investment income, net realized gains (losses) and net assets were not
affected by this reclassification.
The tax character of distributions paid during the period ended August 31, 2003
and the years ended December 31, 2002 and December 31, 2001 was as follows:
PERIOD ENDED AUGUST 31, 2003
-----------------------------------------------------------
TAX-EXEMPT ORDINARY LONG-TERM
INCOME INCOME CAPITAL GAINS TOTAL
------------ ----------- ------------- -----------
Columbia Real Estate Equity Fund ......... $ -- $11,900,435 $ -- $11,900,435
Columbia Balanced Fund ................... -- 6,968,577 -- 6,968,577
Columbia Short Term Bond Fund ............ -- 7,429,972 -- 7,429,972
Columbia Fixed Income Securities Fund .... -- 14,327,387 -- 14,327,387
Columbia National Municipal Bond Fund .... 432,316 2,844 10,985 446,145
Columbia Oregon Municipal Bond Fund ...... 14,166,830 24,229 280,860 14,471,919
Columbia High Yield Fund ................. -- 53,476,396 -- 53,476,396
Columbia Daily Income Company ............ -- 3,560,546 -- 3,560,546
156
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31, 2002
---------------------------------------------------------------------
TAX-EXEMPT ORDINARY LONG-TERM TAX RETURN
INCOME INCOME CAPITAL GAINS OF CAPITAL TOTAL
----------- ------------ ------------ ----------- ------------
Columbia Common Stock Fund ............... $ -- $ 2,325,610 $ -- $ -- $ 2,325,610
Columbia International Stock Fund ........ -- 102,850 -- 403,799 506,649
Columbia Real Estate Equity Fund ......... -- 29,918,034 -- 3,915,328 33,833,362
Columbia Strategic Investor Fund ......... -- 2,143,571 71,885 -- 2,215,456
Columbia Balanced Fund ................... -- 21,206,395 -- -- 21,206,395
Columbia Short Term Bond Fund ............ -- 3,936,894 -- -- 3,936,894
Columbia Fixed Income Securities Fund .... -- 25,343,852 -- -- 25,343,852
Columbia National Municipal Bond Fund .... 599,363 2,439 64,967 -- 666,769
Columbia Oregon Municipal Bond Fund ...... 22,352,069 200,224 4,822,914 -- 27,375,207
Columbia High Yield Fund ................. -- 30,342,904 -- -- 30,342,904
Columbia Daily Income Company ............ -- 14,142,055 -- -- 14,142,055
YEAR ENDED DECEMBER 31, 2001
---------------------------------------------------------------------
TAX-EXEMPT ORDINARY LONG-TERM TAX RETURN
INCOME INCOME CAPITAL GAINS OF CAPITAL TOTAL
----------- ------------ ------------ ----------- ------------
Columbia Common Stock Fund ............... $ -- $ 2,384,042 $ 568,973 $ -- $ 2,953,015
Columbia Growth Fund ..................... -- -- 6,365,332 -- 6,365,332
Columbia International Stock Fund ........ -- -- -- 131,448 131,448
Columbia Mid Cap Growth Fund ............. -- -- 36,110,869 -- 36,110,869
Columbia Real Estate Equity Fund ......... -- 21,221,990 -- 2,074,000 23,295,990
Columbia Strategic Investor Fund ......... -- 503,110 -- -- 503,110
Columbia Balanced Fund ................... -- 28,272,449 -- -- 28,272,449
Columbia Short Term Bond Fund ............ -- 2,396,760 107,979 -- 2,504,739
Columbia Fixed Income Securities Fund .... -- 25,535,189 -- -- 25,535,189
Columbia National Municipal Bond Fund .... 533,303 3,175 22,086 -- 558,564
Columbia Oregon Municipal Bond Fund ...... 22,201,827 18,916 1,079,947 -- 23,300,690
Columbia High Yield Fund ................. -- 13,865,815 -- -- 13,865,815
Columbia Daily Income Company ............ -- 45,229,610 -- -- 45,229,610
As of August 31, 2003, the components of distributable earnings on a tax
basis were as follows:
UNDISTRIBUTED UNDISTRIBUTED UNDISTRIBUTED NET
TAX-EXEMPT ORDINARY LONG-TERM UNREALIZED
INCOME INCOME CAPITAL GAINS APPRECIATION *
------------- ------------ ------------- --------------
Columbia Common Stock Fund ............... $ -- $ 1,506,446 $ -- $ 70,654,223
Columbia Growth Fund ..................... -- -- -- 155,584,872
Columbia International Stock Fund ........ -- 1,284,982 -- 28,379,211
Columbia Mid Cap Growth Fund ............. -- -- -- 199,739,368
Columbia Small Cap Growth Fund ........... -- -- -- 142,811,889
Columbia Real Estate Equity Fund ......... -- 4,718,014** -- 190,101,493
Columbia Technology Fund ................. -- -- -- 3,097,683
Columbia Strategic Investor Fund ......... -- 1,293,349 -- 39,426,367
Columbia Balanced Fund ................... -- 1,881,426 -- 71,838,057
Columbia Short Term Bond Fund ............ -- 252,728 -- 1,064,266
Columbia Fixed Income Securities Fund .... -- 64,031 -- 5,969,048
Columbia National Municipal Bond Fund .... 4,291 -- 56,064 428,404
Columbia Oregon Municipal Bond Fund ...... 377,628 95,377 3,257,680 11,503,594
Columbia High Yield Fund ................. -- 2,237,700 -- 12,413,514
Columbia Daily Income Company ............ -- 5,134 -- --
* The difference between book-basis and tax-basis unrealized appreciation
(depreciation), if applicable, is attributable primarily to the tax
deferral of losses on wash sales.
** Amount is estimated as of August 31, 2003.
157
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 3 -- FEDERAL TAX INFORMATION (CONT.)
The following capital loss carryforwards, determined as of August 31, 2003, 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
2005 2006 2007 2008 2009 2010 2011 TOTAL
-------- ------- ----------- ----------- ------------ ------------ ----------- ------------
Columbia Common Stock Fund .......$ -- $ -- $ $ -- $ 52,039,637 $ 73,274,519 $18,452,682 $143,766,838
Columbia Growth Fund ............. -- -- 23,087,439 7,477,479 162,540,209 201,393,752 43,705,919 438,204,798
Columbia International
Stock Fund ....................... -- -- 7,390,519 5,799,516 24,287,430 16,745,931 9,023,330 63,246,726
Columbia Mid Cap Growth Fund ..... -- -- 9,239,978 30,472,022 123,971,781 95,645,403 4,954,493 264,283,677
Columbia Small Cap Growth Fund ... -- -- -- -- 104,088,375 101,480,033 -- 205,568,408
Columbia Real Estate Equity Fund * -- -- -- 1,271,327 -- 10,996,911 -- 12,268,238
Columbia Technology Fund ......... -- -- -- -- 1,244,550 4,569,408 -- 5,813,958
Columbia Strategic Investor Fund . -- -- 1,431,991 789,528 -- 18,244,149 7,553,218 28,018,886
Columbia Balanced Fund ........... -- -- -- -- 65,697,715 69,939,934 10,183,477 145,821,126
Columbia Short Term Bond Fund .... 450,166 517,428 -- 1,103,186 -- -- -- 2,070,780
Columbia Fixed Income
Securities Fund .................. -- -- -- -- -- 2,618,327 -- 2,618,327
Columbia High Yield Fund ......... -- -- 798,777 1,547,817 6,534,263 26,808,027 -- 35,688,884
Columbia Daily Income Company .... -- -- -- -- -- -- 320 320
* The Fund's capital loss carryforward information is as of December 31, 2002.
Of the capital loss carryforwards attributable to Columbia Growth Fund,
$30,564,918 ($23,087,439 expiring 08/31/07 and $7,477,479 expiring 08/31/08) 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 08/31/07 and $1,927,805 expiring 08/31/08)
and $4,725,563 ($194,260 expiring 08/31/07, $3,871,712 expiring 08/31/08 and
$659,591 expiring 08/31/09) were obtained upon the Columbia International Stock
Fund's merger with LNIEF and SRIF, respectively (See Note 1).
Of the capital loss carryforwards attributable to Columbia Mid Cap Growth Fund,
$9,732,198 ($927,932 expiring 08/31/07, $7,427,424 expiring 08/31/08 and
$1,376,842 expiring 08/31/09), $39,492,613 ($5,340,814 expiring 08/31/07,
$22,105,946 expiring 08/31/08 and $12,045,853 expiring 08/31/09) and $4,415,697
($2,971,232 expiring 08/31/07, $938,652 expiring 08/31/08 and $505,813 expiring
08/31/09) were obtained upon the Columbia Mid Cap Growth Fund's merger with
LMCGF, SRCOF and GGIIF, respectively (See Note 1).
Of the capital loss carryforwards attributable to Columbia Strategic Investor
Fund, $1,968,809 ($1,331,685 expiring 08/31/07 and $637,124 expiring 08/31/08)
and $252,710 ($100,306 expiring 08/31/07 and $152,404 expiring 08/31/08) were
obtained upon the Columbia Strategic Investor Fund's merger with LCEF and LCF,
respectively (See Note 1).
Of the capital loss carryforwards attributable to Columbia Short Term Bond Fund,
$2,070,780 ($450,166 expiring 08/31/05, $517,428 expiring 08/31/06 and
$1,103,186 expiring 08/31/08) was obtained upon the Columbia Short Term Bond
Fund's merger with Galaxy Short Term Bond Fund (See Note 1).
158
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 4 -- TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
On April 1, 2003, Colonial Management Associates, Inc. ("Colonial") the
administrator to the Funds, 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 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:
ACTUAL RATE
FOR THE PERIOD FEES ON FEES ON FEES ON FEES ON
ENDED NET ASSETS NET ASSETS NET ASSETS NET ASSETS
AUGUST 31, FIRST NEXT NEXT EXCEEDING
2003 $200 MILLION $300 MILLION $500 MILLION $1 BILLION
------------- ------------ ------------ ------------ -----------
Columbia Common Stock Fund ................ 0.600% 0.600% 0.600% 0.600% 0.600%
Columbia Growth Fund ...................... 0.602% 0.750% 0.625% 0.500% 0.500%
Columbia International Stock Fund* ........ 1.000% 1.000% 1.000% 1.000% 1.000%
Columbia Mid Cap Growth Fund .............. 0.888% 1.000% 1.000% 0.750% 0.750%
Columbia Small Cap Growth Fund ............ 1.000% 1.000% 1.000% 1.000% 1.000%
Columbia Real Estate Equity Fund .......... 0.750% 0.750% 0.750% 0.750% 0.750%
Columbia Technology Fund .................. 1.000% 1.000% 1.000% 1.000% 1.000%
Columbia Strategic Investor Fund .......... 0.750% 0.750% 0.750% 0.750% 0.750%
Columbia Balanced Fund .................... 0.500% 0.500% 0.500% 0.500% 0.500%
Columbia Short Term Bond Fund ............. 0.500% 0.500% 0.500% 0.500% 0.500%
Columbia Fixed Income Securities Fund ..... 0.500% 0.500% 0.500% 0.500% 0.500%
Columbia National Municipal Bond Fund ..... 0.500% 0.500% 0.500% 0.500% 0.500%
Columbia Oregon Municipal Bond Fund ....... 0.500% 0.500% 0.500% 0.500% 0.500%
Columbia High Yield Fund .................. 0.600% 0.600% 0.600% 0.600% 0.600%
Columbia Daily Income Company ............. 0.473% 0.500% 0.500% 0.450% 0.400%
* Effective July 30, 2003, the management fee was changed for the following fund:
Columbia International Stock Fund ......... N/A 1.000% 1.000% 0.950% 0.900%
TRANSFER AGENT FEES. The transfer agent for the Funds is Liberty Funds
Services, Inc., an affiliate of Columbia. Effective October 13, 2003, Liberty
Funds Services, Inc. changed its name to Columbia Funds Services, Inc. ("CFSI").
For all Funds' Class Z shares, with the exception of Columbia National Municipal
Bond Fund, CFSI 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 CFSI 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, CFSI receives reimbursement for certain
out-of-pocket expenses.
At a special meeting held on September 30, 2003, the Board of Directors approved
a change of the transfer agent fees structure for the Funds. Effective November
1, 2003, the Funds will be charged an annual charge per open account for the
transfer agent fees as follows:
Columbia Common Stock Fund $28.00
Columbia Growth Fund $28.00
Columbia International Stock Fund $28.00
159
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 4 -- TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONT.)
Columbia Mid Cap Growth Fund $28.00
Columbia Small Cap Growth Fund $28.00
Columbia Real Estate Equity Fund $28.00
Columbia Technology Fund $28.00
Columbia Strategic Investor Fund $28.00
Columbia Balanced Fund $28.00
Columbia Short Term Bond Fund $34.00
Columbia Fixed Income Securities Fund $34.00
Columbia National Municipal Bond Fund $34.00
Columbia Oregon Municipal Bond Fund $34.00
Columbia High Yield Fund $34.00
Columbia Daily Income Company $33.50
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.
At the special meeting held on September 30, 2003, the Board of Directors also
approved a change of the pricing and bookkeeping fees structure effective
November 1, 2003. Under the new pricing and bookkeeping agreement, Columbia will
receive from the Funds an annual flat financial accounting fee of $25,000, an
annual flat financial reporting fee of $19,965 and a monthly financial
accounting fee equal to 0.02% annually of average daily net assets of each Fund.
The fee for a Fund in any year shall not exceed $150,000.
UNDERWRITING DISCOUNTS, SERVICE AND DISTRIBUTION FEES. Liberty Funds
Distributor, Inc. (the "Distributor"), an affiliate of Columbia, is the Funds'
principal underwriter. Effective October 13, 2003, Liberty Funds Distributor,
Inc. changed its name to Columbia Funds Distributor, Inc. For the period ended
August 31, 2003, the Funds have been advised that the Distributor retained fees
as follows:
FRONT-END CONTINGENT DEFERRED
SALES CHARGE SALES CHARGE
----------------- ---------------------------------------
CLASS A CLASS T CLASS A CLASS B CLASS D CLASS G
-------- ------- ------- -------- -------- -------
Columbia Common Stock Fund .............. $ 166 $ -- $ -- $ 7 $ -- $ --
Columbia Growth Fund .................... 2,534 -- 1,109 215 50 19,518
Columbia International Stock Fund ....... 7,096 -- 2,087 19,114 106 --
Columbia Mid Cap Growth Fund ............ 1,056 65 22 7,098 119 1,636
Columbia Real Estate Equity Fund ........ 11,048 -- -- 1,450 122 --
Columbia Technology Fund ................ 151 -- 154 58 -- --
Columbia Strategic Investor Fund ........ 1,674 -- 280 6,849 92 --
Columbia Balanced Fund .................. 1,584 -- 77 4,927 150 --
Columbia Short Term Bond Fund ........... 34,079 33 953 52,350 16,823 5,151
Columbia Fixed Income Securities Fund ... 4,172 -- -- 6,586 2,841 --
Columbia National Municipal Bond Fund ... 1,276 -- -- -- 121 --
Columbia Oregon Municipal Bond Fund ..... 6,909 -- -- 625 2,100 --
Columbia High Yield Fund ................ 158,986 -- 8,066 73,004 42,091 --
160
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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 Mid Cap Growth 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 Investor 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 limits payments under the Plan for Class
A shares to 0.25% annually of the Class A average daily net assets.
(b) The Fund's Board of Directors limits payments under the Plan for Class G
shares to 0.95% annually of the Class G average daily net assets.
(c) The Fund's Board of Directors limits payments under the Plan for Class G
shares to 0.80% annually of the Class G average daily net assets.
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 Mid Cap Growth 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 Mid Cap Growth 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 period ended August 31, 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.
161
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 4 -- TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONT.)
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
at an annual rate of average daily net assets as follows:
CLASS A CLASS B CLASS D CLASS Z
------- ------- ------- -------
Columbia International Stock Fund . -- 0.11% 0.75% 0.12%
Columbia Mid Cap Growth Fund ...... 0.01% 0.12% 0.09% 0.05%
Columbia Strategic Investor 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.
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 period ended August 31, 2003 are as follows:
CUSTODY
NAME OF FUND CREDITS
- ------------ -------
Columbia Common Stock Fund ............. $ 1
Columbia Growth Fund ................... 1,061
Columbia International Stock Fund ...... 280
Columbia Mid Cap Growth Fund ........... 527
Columbia Small Cap Growth Fund ......... 1,211
Columbia Real Estate Equity Fund ....... 80
Columbia Technology Fund ............... 264
Columbia Strategic Investor Fund ....... 2,714
Columbia Balanced Fund ................. 1,766
Columbia Short Term Bond Fund .......... 3,254
Columbia Fixed Income Securities Fund .. 1,575
Columbia National Municipal Bond Fund .. 47
Columbia Oregon Municipal Bond Fund .... 91
Columbia High Yield Fund ............... 6,125
Columbia Daily Income Company .......... 1,437
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.
162
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 5 -- CAPITAL STOCK ACTIVITY
COLUMBIA FUNDS
FOR THE PERIOD ENDED AUGUST 31, 2003 (a)
REAL
COMMON INTERNATIONAL MID CAP SMALL CAP ESTATE
STOCK GROWTH STOCK GROWTH GROWTH EQUITY
FUND FUND FUND FUND FUND FUND
------------ ------------ ------------ ------------ ------------ -----------
SHARES:
CLASS A:
Shares sold................................. 10,945 50,514 179,774 389,366 -- 655,533
Shares issued for distributions reinvested.. -- -- -- -- -- 2,966
Shares redeemed............................. (117) (26,317) (278,832) (219,073) -- (121,571)
------------ ------------ ------------ ------------ ------------ -----------
Net increase (decrease).................. 10,828 24,197 (99,058) 170,293 -- 536,928
============ ============ ============ ============ ============ ===========
CLASS B:
Shares sold................................. 36,205 31,960 117,506 47,439 -- 178,356
Shares issued for distributions reinvested.. -- -- -- -- -- 860
Shares redeemed............................. (7,327) (5,060) (289,533) (40,673) -- (12,411)
------------ ------------ ------------ ------------ ------------ -----------
Net increase (decrease).................. 28,878 26,900 (172,027) 6,766 -- 166,805
============ ============ ============ ============ ============ ===========
CLASS D:
Shares sold................................. 16,394 13,491 67,591 18,375 -- 147,439
Shares issued for distributions reinvested.. -- -- -- -- -- 775
Shares redeemed............................. (11,846) (6,462) (65,502) (6,698) -- (3,893)
------------ ------------ ------------ ------------ ------------ -----------
Net increase............................. 4,548 7,029 2,089 11,677 -- 144,321
============ ============ ============ ============ ============ ===========
CLASS G:
Shares sold................................. -- 5,008 -- 1,272 -- --
Shares redeemed............................. -- (58,288) -- (7,460) -- --
------------ ------------ ------------ ------------ ------------ -----------
Net decrease............................. -- (53,280) -- (6,188) -- --
============ ============ ============ ============ ============ ===========
CLASS T:
Shares sold................................. -- -- -- 22,853 -- --
Shares redeemed............................. -- -- -- (127,510) -- --
------------ ------------ ------------ ------------ ------------ -----------
Net decrease............................. -- -- -- (104,657) -- --
============ ============ ============ ============ ============ ===========
CLASS Z:
Shares sold................................. 3,346,207 3,770,779 12,787,173 15,558,486 8,361,804 19,396,080
Shares issued for distributions reinvested.. -- -- -- -- -- 497,422
Shares redeemed............................. (6,523,031) (5,869,216) (5,233,439) (15,158,849) (9,108,258) (21,373,984)
------------ ------------ ------------ ------------ ------------ -----------
Net increase (decrease).................. (3,176,824) (2,098,437) 7,553,734 399,637 (746,454) (1,480,482)
============ ============ ============ ============ ============ ===========
(a)The Funds have changed their fiscal year end from December 31 to August 31.
163
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 5 -- CAPITAL STOCK ACTIVITY (CONT.)
COLUMBIA FUNDS
FOR THE PERIOD ENDED AUGUST 31, 2003 (a)
REAL
COMMON INTERNATIONAL MID CAP SMALL CAP ESTATE
STOCK GROWTH STOCK GROWTH GROWTH EQUITY
FUND FUND FUND FUND FUND FUND
------------- ------------- ------------- ------------- ------------- -------------
AMOUNTS:
CLASS A:
Sales ............................ $ 170,123 $ 1,127,877 $ 1,838,487 $ 6,472,166 -- $ 12,613,973
Distributions reinvested ......... -- -- -- -- -- 56,728
Redemptions ...................... (1,878) (600,530) (2,814,836) (3,745,690) -- (2,319,879)
------------- ------------- ------------- ------------- ------------- -------------
Net increase (decrease) ....... $ 168,245 $ 527,347 $ (976,349) $ 2,726,476 -- $ 10,350,822
============= ============= ============= ============= ============= =============
CLASS B:
Sales ............................ $ 551,074 $ 722,252 $ 1,216,734 $ 745,476 -- $ 3,330,663
Distributions reinvested ......... -- -- -- -- -- 16,519
Redemptions ...................... (107,471) (113,169) (2,950,070) (637,724) -- (241,060)
------------- ------------- ------------- ------------- ------------- -------------
Net increase (decrease) ....... $ 443,603 $ 609,083 $ (1,733,336) $ 107,752 -- $ 3,106,122
============= ============= ============= ============= ============= =============
CLASS D:
Sales ............................ $ 259,863 $ 309,866 $ 669,176 $ 281,516 -- $ 2,763,824
Distributions reinvested ......... -- -- -- -- -- 14,883
Redemptions ...................... (192,430) (148,435) (642,271) (106,816) -- (76,027)
------------- ------------- ------------- ------------- ------------- -------------
Net increase .................. $ 67,433 $ 161,431 $ 26,905 $ 174,700 -- $ 2,702,680
============= ============= ============= ============= ============= =============
CLASS G:
Sales ............................ -- $ 110,114 -- $ 19,333 -- --
Redemptions ...................... -- (1,271,125) -- (114,734) -- --
------------- ------------- ------------- ------------- ------------- -------------
Net decrease .................. -- $ (1,161,011) -- $ (95,401) -- --
============= ============= ============= ============= ============= =============
CLASS T:
Sales ............................ -- -- -- $ 357,740 -- --
Redemptions ...................... -- -- -- (2,002,189) -- --
------------- ------------- ------------- ------------- ------------- -------------
Net decrease .................. -- -- -- $ (1,644,449) -- --
============= ============= ============= ============= ============= =============
CLASS Z:
Sales............................. $ 52,008,289 $ 84,770,150 $ 132,219,531 $ 243,718,260 $ 154,165,644 $ 358,557,734
Distributions reinvested ......... -- -- -- -- -- 9,407,709
Redemptions ...................... (102,375,697) (128,773,493) (52,772,540) (237,069,456) (159,924,003) (393,631,516)
------------- ------------- ------------- ------------- ------------- -------------
Net increase (decrease)........ $ (50,367,408) $ (44,003,343) $ 79,446,991 $ 6,648,804 $ (5,758,359) $ (25,666,073)
============= ============= ============= ============= ============= =============
Total Capital Share Transactions.. $ (49,688,127) $ (43,866,493) $ 76,764,211 $ 7,917,882 $ (5,758,359) $ (9,506,449)
============= ============= ============= ============= ============= =============
(a) The Funds have changed their fiscal year end from December 31 to August 31.
164
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
COLUMBIA FUNDS
FOR THE PERIOD ENDED AUGUST 31, 2003 (a)
SHORT FIXED NATIONAL
STRATEGIC TERM INCOME MUNICIPAL
TECHNOLOGY INVESTOR BALANCED BOND SECURITIES BOND
FUND FUND FUND FUND FUND FUND
----------- ------------ ------------ ------------ ------------ -----------
SHARES:
CLASS A:
Shares sold................................. 170,882 75,306 33,607 4,593,712 726,952 53,632
Shares issued for distributions reinvested.. -- -- 155 23,346 4,853 578
Shares redeemed............................. (107,548) (383,804) (7,153) (935,142) (239,158) (21,357)
----------- ------------ ------------ ------------ ------------ -----------
Net increase (decrease).................. 63,334 (308,498) 26,609 3,681,916 492,647 32,853
=========== ============ ============ ============ ============ ===========
CLASS B:
Shares sold................................. 256,020 63,797 157,057 2,912,411 262,519 59,020
Shares issued for distributions reinvested.. -- -- 424 15,236 3,019 460
Shares redeemed............................. (45,189) (28,440) (17,361) (522,269) (43,299) (7,781)
----------- ------------ ------------ ------------ ------------ -----------
Net increase............................. 210,831 35,357 140,120 2,405,378 222,239 51,699
=========== ============ ============ ============ ============ ===========
CLASS D:
Shares sold................................. 24,865 27,649 27,277 1,835,008 226,577 39,862
Shares issued for distributions reinvested.. -- -- 152 15,226 1,525 291
Shares redeemed............................. (22,619) (10,199) (12,719) (305,609) (62,333) (1,214)
----------- ------------ ------------ ------------ ------------ -----------
Net increase ............................ 2,246 17,450 14,710 1,544,625 165,769 38,939
=========== ============ ============ ============ ============ ===========
CLASS G:
Shares sold................................. -- -- -- 19,116 -- --
Shares issued for distributions reinvested.. -- -- -- 2,089 -- --
Shares redeemed............................. -- -- -- (50,125) -- --
----------- ------------ ------------ ------------ ------------ -----------
Net decrease ............................ -- -- -- (28,920) -- --
=========== ============ ============ ============ ============ ===========
CLASS T:
Shares sold................................. -- -- -- 364,019 -- --
Shares issued for distributions reinvested.. -- -- -- 45,992 -- --
Shares redeemed............................. -- -- -- (694,581) -- --
----------- ------------ ------------ ------------ ------------ -----------
Net decrease ............................ -- -- -- (284,570) -- --
=========== ============ ============ ============ ============ ===========
CLASS Z:
Shares sold................................. 4,006,292 5,892,671 3,932,560 33,169,321 13,907,825 592,742
Shares issued for distributions reinvested.. -- -- 379,248 312,399 1,009,178 37,677
Shares redeemed............................. (2,819,286) (7,620,153) (9,102,129) (19,471,607) (17,459,206) (812,144)
----------- ------------ ------------ ------------ ------------ -----------
Net increase (decrease).................. 1,187,006 (1,727,482) (4,790,321) 14,010,113 (2,542,203) (181,725)
=========== ============ ============ ============ ============ ===========
(a) The Funds have changed their fiscal year end from December 31 to August 31.
165
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 5 -- CAPITAL STOCK ACTIVITY (CONT.)
COLUMBIA FUNDS
FOR THE PERIOD ENDED AUGUST 31, 2003 (a)
SHORT FIXED NATIONAL
STRATEGIC TERM INCOME MUNICIPAL
TECHNOLOGY INVESTOR BALANCED BOND SECURITIES BOND
FUND FUND FUND FUND FUND FUND
------------ ------------- ------------- ------------- ------------ ------------
AMOUNTS:
CLASS A:
Sales .......................... $ 795,971 $ 1,062,103 $ 621,075 $ 40,026,783 $ 9,909,718 $ 553,278
Distributions reinvested ....... -- -- 2,818 203,076 65,705 5,930
Redemptions .................... (503,942) (5,265,019) (133,619) (8,119,243) (3,233,766) (221,347)
------------ ------------- ------------- ------------- ------------- -----------
Net increase (decrease) ..... $ 292,029 $ (4,202,916) $ 490,274 $ 32,110,616 $ 6,741,657 $ 337,861
============ ============= ============= ============= ============= ===========
CLASS B:
Sales .......................... $ 1,267,177 $ 901,976 $ 2,842,073 $ 25,355,903 $ 3,564,890 $ 608,830
Distributions reinvested ....... -- -- 7,724 132,630 41,001 4,713
Redemptions .................... (239,637) (390,511) (311,808) (4,540,064) (588,947) (79,981)
------------ ------------- ------------- ------------- ------------- -----------
Net increase ................ $ 1,027,540 $ 511,465 $ 2,537,989 $ 20,948,469 $ 3,016,944 $ 533,562
============ ============= ============= ============= ============= ===========
CLASS D:
Sales .......................... $ 123,446 $ 397,532 $ 487,690 $ 15,983,699 $ 3,084,131 $ 410,170
Distributions reinvested ....... -- -- 2,764 132,466 20,715 2,986
Redemptions .................... (115,105) (149,190) (224,597) (2,657,104) (849,629) (12,486)
------------ ------------- ------------- ------------- ------------- -----------
Net increase ................ $ 8,341 $ 248,342 $ 265,857 $ 13,459,061 $ 2,255,217 $ 400,670
============ ============= ============= ============= ============= ===========
CLASS G:
Sales .......................... -- -- -- $ 168,060 -- --
Distributions reinvested ....... -- -- -- 18,273 -- --
Redemptions .................... -- -- -- (437,235) -- --
------------ ------------- ------------- ------------- ------------- -----------
Net decrease ................ -- -- -- $ (250,902) -- --
============ ============= ============= ============= ============= ===========
CLASS T:
Sales .......................... -- -- -- $ 3,195,681 -- --
Distributions reinvested ....... -- -- -- 397,049 -- --
Redemptions .................... -- -- -- (6,031,954) -- --
------------ ------------- ------------- ------------- ------------- -----------
Net decrease ................ -- -- -- $ (2,439,224) -- --
============ ============= ============= ============= ============= ===========
CLASS Z:
Sales .......................... $ 18,434,013 $ 84,681,724 $ 71,002,827 $ 289,096,535 $ 189,047,650 $ 6,133,480
Distributions reinvested ....... -- -- 6,864,708 2,717,394 13,708,472 387,633
Redemptions .................... (12,505,086) (105,413,125) (162,992,982) (169,227,269) (236,640,077) (8,377,987)
------------ ------------- ------------- ------------- ------------- -----------
Net increase (decrease) ..... $ 5,928,927 $ (20,731,401) $ (85,125,447) $ 122,586,660 $ (33,883,955) $(1,856,874)
============ ============= ============= ============= ============= ===========
Total Capital Share Transactions $ 7,256,837 $ (24,174,510) $ (81,831,327) $ 186,414,680 $ (21,870,137) $ (584,781)
============ ============= ============= ============= ============= ===========
(a) The Funds have changed their fiscal year end from December 31 to August 31.
166
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
COLUMBIA FUNDS
FOR THE PERIOD ENDED AUGUST 31, 2003 (a)
OREGON
MUNICIPAL HIGH DAILY
BOND YIELD INCOME
FUND FUND COMPANY
------------ ------------ ------------
SHARES:
CLASS A:
Shares sold........................................ 143,490 25,041,610 --
Shares issued for distributions reinvested......... 1,224 450,683 --
Shares redeemed.................................... (8,295) (6,784,180) --
------------ ------------ ------------
Net increase.................................... 136,419 18,708,113 --
============ ============ ============
CLASS B:
Shares sold........................................ 52,585 9,063,139 --
Shares issued for distributions reinvested......... 334 148,406 --
Shares redeemed.................................... (1,187) (609,559) --
------------ ------------ ------------
Net increase.................................... 51,732 8,601,986 --
============ ============ ============
CLASS D:
Shares sold........................................ 51,705 10,747,325 --
Shares issued for distributions reinvested......... 628 172,120 --
Shares redeemed.................................... (31,042) (873,716) --
------------ ------------ ------------
Net increase.................................... 21,291 10,045,729 --
============ ============ ============
CLASS Z:
Shares sold........................................ 10,541,884 100,424,297 468,052,097
Shares issued for distributions reinvested......... 910,985 3,670,269 4,068,237
Shares redeemed.................................... (12,534,293) (47,029,601) (710,031,351)
------------ ------------ ------------
Net increase (decrease) ........................ (1,081,424) 57,064,965 (237,911,017)
============ ============ ============
(a) The Funds have changed their fiscal year end from December 31 to August 31.
167
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 5 -- CAPITAL STOCK ACTIVITY (CONT.)
COLUMBIA FUNDS
FOR THE PERIOD ENDED AUGUST 31, 2003 (a)
OREGON
MUNICIPAL HIGH DAILY
BOND YIELD INCOME
FUND FUND COMPANY
------------- ------------- -------------
AMOUNTS:
CLASS A:
Sales .......................... $ 1,801,219 $ 213,784,547 --
Distributions reinvested ....... 15,231 3,856,013 --
Redemptions .................... (103,112) (57,991,328) --
------------- ------------- -------------
Net increase ................ $ 1,713,338 $ 159,649,232 --
============= ============= =============
CLASS B:
Sales .......................... $ 657,645 $ 77,330,185 --
Distributions reinvested ....... 4,158 1,269,735 --
Redemptions .................... (15,171) (5,189,719) --
------------- ------------- -------------
Net increase ................ $ 646,632 $ 73,410,201 --
============= ============= =============
CLASS D:
Sales .......................... $ 648,502 $ 91,694,699 --
Distributions reinvested ....... 7,849 1,472,483 --
Redemptions .................... (389,956) (7,476,795) --
------------- ------------- -------------
Net increase ................ $ 266,395 $ 85,690,387 --
============= ============= =============
CLASS Z:
Sales .......................... $ 131,976,815 $ 857,268,253 $ 468,052,097
Distributions reinvested ....... 11,381,588 31,357,503 4,068,237
Redemptions .................... (156,819,380) (401,243,637) (710,031,351)
------------- ------------- -------------
Net increase (decrease) ..... $ (13,460,977) $ 487,382,119 $(237,911,017)
============= ============= =============
Total Capital Share Transactions $ (10,834,612) $ 806,131,939 $(237,911,017)
============= ============= =============
(a) The Funds have changed their fiscal year end from December 31 to August 31.
168
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
COLUMBIA FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2002
REAL
COMMON INTERNATIONAL MID CAP SMALL CAP ESTATE
STOCK GROWTH STOCK GROWTH GROWTH 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) -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase............................. -- -- -- 1,755,438 -- --
============ ============ ============ ============ ============ ============
CLASS Z:
Shares sold................................. 7,624,871 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
============ ============ ============ ============ ============ ============
(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.
169
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 5 -- CAPITAL STOCK ACTIVITY (CONT.)
COLUMBIA FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2002
REAL
COMMON INTERNATIONAL MID CAP SMALL CAP ESTATE
STOCK GROWTH STOCK GROWTH GROWTH EQUITY
FUND (a) FUND (b) FUND (a) FUND (c) 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.
(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.
170
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
COLUMBIA FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2002
SHORT FIXED NATIONAL
STRATEGIC TERM INCOME MUNICIPAL
TECHNOLOGY INVESTOR BALANCED BOND SECURITIES BOND
FUND (a) FUND (a) FUND (a) FUND (b) 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
=========== =========== =========== =========== =========== ===========
(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.
171
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 5 -- CAPITAL STOCK ACTIVITY (CONT.)
COLUMBIA FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2002
SHORT FIXED NATIONAL
STRATEGIC TERM INCOME MUNICIPAL
TECHNOLOGY INVESTOR BALANCED BOND SECURITIES BOND
FUND (a) FUND (a) FUND (a) FUND (b) 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
============= ============= ============= ============= ============= =============
(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.
172
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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)
============ ============ ==============
(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.
173
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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
------------- ------------- ---------------
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.
174
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
COLUMBIA FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2001
REAL
COMMON INTERNATIONAL MID CAP SMALL CAP ESTATE
STOCK GROWTH STOCK GROWTH GROWTH EQUITY
FUND FUND FUND FUND FUND FUND
------------- ------------- ------------- ------------- ------------- -------------
SHARES:
CLASS Z:
Shares sold ...................... 10,491,254 6,698,004 10,569,626 10,827,578 23,700,865 19,257,087
Shares issued for distributions
reinvested ...................... 145,205 191,120 10,692 1,812,540 -- 1,287,767
Shares redeemed .................. (13,300,679) (12,489,763) (11,176,755) (14,683,575) (15,927,385) (10,494,908)
------------- ------------- ------------- ------------- ------------- -------------
Net increase (decrease) ....... (2,664,220) (5,600,639) (596,437) (2,043,457) 7,773,480 10,049,946
============= ============= ============= ============= ============= =============
AMOUNTS:
CLASS Z:
Sales ............................ $ 223,544,221* $ 224,936,719 $ 137,760,985 $ 233,729,747 $ 523,950,512 $ 342,012,407
Distributions reinvested ......... 2,904,776 6,121,573 128,621 35,253,904 -- 22,872,415
Redemptions ...................... (281,981,291) (422,010,636) (145,054,766) (307,848,091) (348,625,888) (185,458,069)
------------- ------------- ------------- ------------- ------------- -------------
Net increase (decrease) ....... $ (55,532,294) $(190,952,344) $ (7,165,160) $ (38,864,440) $ 175,324,624 $ 179,426,753
============= ============= ============= ============= ============= =============
SHORT FIXED NATIONAL
STRATEGIC TERM INCOME MUNICIPAL
TECHNOLOGY INVESTOR BALANCED BOND SECURITIES BOND
FUND FUND FUND FUND FUND FUND
------------ ------------- ------------- ------------ ------------- -----------
SHARES:
CLASS Z:
Shares sold ................... 2,782,881 13,572,048 10,632,218 6,668,086 18,021,813 647,652
Shares issued for distributions
reinvested ................... -- 34,400 1,349,053 276,496 1,807,564 51,314
Shares redeemed ............... (1,591,291) (4,847,656) (13,467,113) (3,873,523) (13,794,317) (399,171)
------------ ------------- ------------- ------------ ------------- -----------
Net increase (decrease) .... 1,191,590 8,758,792 (1,485,842) 3,071,059 6,035,060 299,795
============ ============= ============= ============ ============= ===========
AMOUNTS:
CLASS Z:
Sales ......................... $ 18,876,487 $ 178,940,298 $ 229,671,103 $ 57,224,022 $ 237,931,931 $ 6,424,664
Distributions reinvested ...... -- 499,485 27,875,444 2,358,854 23,905,520 507,903
Redemptions ................... (9,287,489) (63,849,817) (287,224,069) (33,118,729) (181,939,632) (3,955,073)
------------ ------------- ------------- ------------ ------------- -----------
Net increase (decrease) .... $ 9,588,998 $ 115,589,966 $ (29,677,522) $ 26,464,147 $ 79,897,819 $ 2,977,494
============ ============= ============= ============ ============= ===========
* Includes $17,070 of securities received in an in-kind transfer.
175
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
COLUMBIA FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2001
OREGON
MUNICIPAL HIGH DAILY
BOND YIELD INCOME
FUND FUND COMPANY
------------- ------------- ---------------
SHARES:
CLASS Z:
Shares sold .............................. 12,007,422 34,217,948 1,507,707,483
Shares issued for distributions reinvested 1,490,891 1,451,820 45,211,017
Shares redeemed .......................... (8,798,807) (19,588,487) (1,497,533,872)
------------- ------------- ---------------
Net increase .......................... 4,699,506 16,081,281 55,384,628
============= ============= ===============
AMOUNTS:
CLASS A:
Sales .................................... $ 147,270,468 $ 308,626,705 $ 1,507,707,483
Distributions reinvested ................. 18,269,042 13,033,592 45,211,017
Redemptions .............................. (107,912,289) (175,676,728) (1,497,533,872)
------------- ------------- ---------------
Net increase .......................... $ 57,627,221 $ 145,983,569 $ 55,384,628
============= ============= ===============
NOTE 6 -- LINE OF CREDIT
The Funds participate in a $100,000,000 uncommitted line of credit that covers
all the Funds together with the CMG Fund Trust, an affiliated group of funds
managed by the investment advisor. The uncommitted line of credit expires on
July 2, 2004. The Funds did not utilize the line of credit during the period
ended August 31, 2003.
NOTE 7 -- SUBSEQUENT EVENT
At a special meeting of shareholders held on October 7, 2003, shareholders of
the Funds approved a proposal to elect 9 new directors as well as three of the
incumbent directors of the Board. The Board of Directors now consists of 12
directors which will be responsible for board oversight of 124 funds in the
Columbia Funds Complex (including the former Liberty Funds, former Stein Roe
Funds, Columbia Funds and CMG Funds).
176
REPORT OF INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF:
Columbia Common Stock Fund, Inc.
Columbia Growth Fund, Inc.
Columbia International Stock Fund, Inc.
Columbia Mid Cap Growth Fund, Inc.
(formerly Columbia Special Fund, Inc.)
Columbia Small Cap Growth Fund, Inc.
(formerly Columbia Small Cap Fund, Inc.)
Columbia Real Estate Equity Fund, Inc.
Columbia Technology Fund, Inc.
Columbia Strategic Investor Fund, Inc.
(formerly Columbia Strategic Value Fund, Inc.)
Columbia Balanced Fund, Inc.
Columbia Short Term Bond Fund, Inc.
Columbia Fixed Income Securities Fund, Inc.
Columbia National Municipal Bond Fund, Inc.
Columbia Oregon Municipal Bond Fund, Inc.
Columbia High Yield Fund, Inc.
Columbia Daily Income Company
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of each of the funds listed above
comprising the Columbia Funds (collectively, the "Funds") at August 31, 2003,
and the results of each of their operations, the changes in each of their net
assets, and their financial highlights for the periods indicated, in conformity
with accounting principles generally accepted in the United States of America.
These financial statements and financial highlights (hereafter referred to as
financial statements) are the responsibility of the Funds' management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with auditing standards generally accepted in the United States of America,
which require that we plan and perform the audits to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at August 31, 2003, by correspondence with the
custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
October 21, 2003
177
UNAUDITED INFORMATION
- --------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION
COLUMBIA INTERNATIONAL STOCK FUND
Foreign taxes paid during the fiscal year ended August 31, 2003, amounting to
$403,597 ($0.02 per share) are expected to be passed through to shareholders as
100% allowable foreign tax credits on Form 1099-DIV for the year ending December
31, 2003.
COLUMBIA BALANCED FUND
40.94% of the ordinary income distributed by the Fund, for the fiscal year ended
August 31, 2003, qualifies for the corporate dividends received deduction.
For non-corporate shareholders, 40.54% of income distributed by the Fund
for the period ended August 31, 2003 represent qualified dividend income subject
to the 15% income tax rate category.
COLUMBIA NATIONAL MUNICIPAL BOND FUND
For the fiscal year ended August 31, 2003, the Fund designates long-term capital
gains of $10,985.
100% of the distributions from net investment income will be treated as exempt
income for federal income tax purposes.
COLUMBIA OREGON MUNICIPAL BOND FUND
For the fiscal year ended August 31, 2003, the Fund designates long-term
capital gains of $280,860.
99.97% of the distributions from net investment income will be treated as
exempt income for federal income tax purposes.
178
OFFICERS AND DIRECTORS
- --------------------------------------------------------------------------------
The Directors serve terms of indefinite duration. The names, addresses and
ages of the Directors and officers of the Columbia Funds, the year each was
first elected or appointed to office, their principal business occupations
during at least the last five years, the number of portfolios overseen by each
Director and other directorships they hold are shown below. Each officer listed
below serves as an officer of each of the Columbia Funds. The Statement of
Additional Information (SAI) contains additional information about the Directors
and is available without charge upon request by calling the funds' distributor
at 800-345-6611.
NUMBER OF
PORTFOLIOS
YEAR FIRST IN COLUMBIA
POSITION ELECTED OR FUNDS COMPLEX OTHER
NAME, ADDRESS WITH APPOINTED PRINCIPAL OCCUPATION(s) OVERSEEN BY DIRECTORSHIPS
AND AGE FUNDS TO OFFICE 1 DURING PAST FIVE YEARS DIRECTOR HELD
------- ----- ---------- ---------------------- -------- ----
DISINTERESTED DIRECTORS:
Douglas A. Hacker Director 1996 Executive Vice President - Strategy of 124 None
(Age 48) United Airlines (airline) since December,
P.O. Box 66100 2002 (formerly President of UAL Loyalty
Chicago, IL 60666 Services (airline) from September, 2001 to
December, 2002; Executive Vice President
and Chief Financial Officer of United
Airlines from March, 1993 to September,
2001; Senior Vice President and Chief
Financial Officer of UAL, Inc. prior thereto).
Janet Langford Kelly Director 1996 Chief Administrative Officer and Senior Vice 124 None
(Age 45) President, Kmart Holding Corporation since
3100 West Beaver Road September, 2003 (formerly Executive Vice
Troy, MI 48084-3163 President-Corporate Development and
Administration, General Counsel and Secretary,
Kellogg Company (food manufacturer), from
September, 1999 to August, 2003; Senior Vice
President, Secretary and General Counsel,
Sara Lee Corporation (branded, packaged,
consumer-products manufacturer) from January,
1995 to September, 1999).
Richard W. Lowry Director 1995 Private Investor since August, 1987 (formerly 126 3 None
(Age 67) Chairman and Chief Executive Officer, U.S.
10701 Charleston Drive Plywood Corporation (building products
Vero Beach, FL 32963 manufacturer)).
Charles R. Nelson Director 1981 Professor of Economics, University of 124 None
(Age 61) Washington, since January, 1976; Ford and
Department of Economics Louisa Van Voorhis Professor of Political
University of Washington Economy, University of Washington, since
Seattle, WA 98195 September, 1993; Director, Institute for
Economic Research, University of Washington,
since September, 2001; Adjunct Professor of
Statistics, University of Washington, since
September, 1980; Associate Editor, Journal of
Money Credit and Banking, since September,
1993; consultant on econometric and statistical
matters.
179
OFFICERS AND DIRECTORS
- --------------------------------------------------------------------------------
NUMBER OF
PORTFOLIOS
YEAR FIRST IN COLUMBIA
POSITION ELECTED OR FUNDS COMPLEX OTHER
NAME, ADDRESS WITH APPOINTED PRINCIPAL OCCUPATION(s) OVERSEEN BY DIRECTORSHIPS
AND AGE FUNDS TO OFFICE 1 DURING PAST FIVE YEARS DIRECTOR HELD
------- ----- ---------- ---------------------- -------- ----
DISINTERESTED DIRECTORS (CONTINUED):
John J. Neuhauser Director 1985 Academic Vice President and Dean of 127 3,4 Saucony, Inc.
(Age 60) Faculties since August, 1999, Boston College (athletic footwear);
84 College Road (formerly Dean, Boston College School of SkillSoft Corp.
Chestnut Hill, MA Management from September, 1977 to (E-Learning)
02467-3838 September, 1999).
Patrick J. Simpson Director 2000 Partner, Perkins Coie L.L.P. (formerly 124 None
(Age 58) Partner, Stoel Rives Boley Jones & Grey).
1211 S.W. 5th Avenue
Suite 1500
Portland, OR 97204
Thomas E. Stitzel Director 1998 Business Consultant since 1999 (formerly 124 None
(Age 67) Professor of Finance from 1975 to 1999 and
2208 Tawny Woods Place Dean from 1977 to 1991, College of Business,
Boise, ID 83706 Boise State University); Chartered Financial
Analyst.
Thomas C. Theobald Director 1996 Managing Director, William Blair Capital 124 Anixter
(Age 66) Partners (private equity investing) since International
27 West Monroe Street, September, 1994 (formerly Chief Executive (network support
Suite 3500 Officer and Chairman of the Board of Directors, equipment
Chicago, IL 60606 Continental Bank Corporation prior thereto). distributor),
Jones Lang
LaSalle (real estate
management
services) and
MONY Group
(life insurance).
Anne-Lee Verville Director 1998 Author and speaker on educational systems 125 4 Chairman of the
(Age 58) needs (formerly General Manager, Global Board of Directors,
359 Stickney Hill Road Education Industry from 1994 to 1997, and Enesco Group, Inc.
Hopkinton, NH 03229 President, Applications Solutions Division (designer, importer
from 1991 to 1994, IBM Corporation (global and distributor of
education and global applications)). giftware and
collectibles).
Richard L. Woolworth Director 1991 Chairman and Chief Executive Officer, The 124 NW Natural,
(Age 62) Regence Group (healthcare maintenance a natural gas
100 S.W. Market Street organization) (formerly Chairman and Chief service provider.
#1500 Executive Officer, BlueCross BlueShield of
Portland, OR 97207 Oregon; Certified Public Accountant, Arthur
Young & Company).
180
OFFICERS AND DIRECTORS
- --------------------------------------------------------------------------------
NUMBER OF
PORTFOLIOS
YEAR FIRST IN COLUMBIA
POSITION ELECTED OR FUNDS COMPLEX OTHER
NAME, ADDRESS WITH APPOINTED PRINCIPAL OCCUPATION(s) OVERSEEN BY DIRECTORSHIPS
AND AGE FUNDS TO OFFICE 1 DURING PAST FIVE YEARS DIRECTOR HELD
------- ----- ---------- ---------------------- -------- ----
INTERESTED DIRECTORS AND OFFICERS:
Vicki L. Benjamin Chief 2001 Controller of the Columbia Funds (the
(Age 42) Accounting former Liberty Funds) and of the Liberty
One Financial Center Officer and All-Star Funds since May, 2002; Chief
Boston, MA 02111 Vice President Accounting Officer of the Columbia Funds
and Liberty All-Star Funds since June, 2001;
Controller and Chief Accounting Officer of
the Galaxy Funds since September, 2002
(formerly Vice President, Corporate Audit,
State Street Bank and Trust Company from May,
1998 to April, 2001; Audit Manager from July,
1994 to June, 1997; Senior Audit Manager from
July, 1997 to May, 1998, Coopers & Lybrand, LLP).
Michael G. Clarke Controller 2000 Assistant Treasurer of Columbia Funds and
(Age 33) and Vice Liberty All-Star Funds; Head of Compliance &
One Financial Center President Trustee Reporting, Columbia Management Group;
Boston, MA 02111 Prior to his current positions, Mr. Clarke was
Vice President, Product Development, Liberty
Funds Group LLC; Assistant Vice President, Fund
Administration, Liberty Funds Group LLC; Audit
Manager, Deloitte & Touche LLP.
J. Kevin Connaughton Treasurer 2000 Treasurer of the Columbia Funds and of the
(Age 39) and Chief Liberty All-Star Funds since December, 2000;
One Financial Center Financial Vice President of the Advisor since April, 2003
Boston, MA 02111 Officer (formerly Controller of the Liberty Funds and of
the Liberty All-Star Funds from February, 1998 to
October, 2000); Treasurer of the Galaxy Funds since
September, 2002; Treasurer, Columbia Management
Multi-Strategy Hedge Fund, LLC since December,
2002 (formerly Vice President of Colonial from
February, 1998 to October, 2000 and Senior Tax
Manager, Coopers & Lybrand, LLP from April,
1996 to January, 1998).
William E. Mayer 2 Director 1994 Managing Partner, Park Avenue Equity 126 3 Lee Enterprises
(Age 63) Partners (private equity) since February, 1999 (print media),
399 Park Avenue (formerly Founding Partner, Development WR Hambrecht
Suite 3204 Capital LLC from November 1996 to February, + Co. (financial
New York, NY 10022 1999; Dean and Professor, College of Business service provider)
and Management, University of Maryland from and First Health
October, 1992 to November, 1996). (healthcare).
181
OFFICERS AND DIRECTORS
- --------------------------------------------------------------------------------
NUMBER OF
PORTFOLIOS
YEAR FIRST IN COLUMBIA
POSITION ELECTED OR FUNDS COMPLEX OTHER
NAME, ADDRESS WITH APPOINTED PRINCIPAL OCCUPATION(s) OVERSEEN BY DIRECTORSHIPS
AND AGE FUNDS TO OFFICE 1 DURING PAST FIVE YEARS DIRECTOR HELD
------------- ----- ---------- ---------------------- -------- ----
INTERESTED DIRECTORS AND OFFICERS (CONTINUED):
Joseph R. Palombo 2 Director, 2000 Executive Vice President and Chief Operating 125 5 None
(Age 50) Chairman of Officer of Columbia Management Group, Inc.
One Financial Center the Board (Columbia Management) since December, 2001
Boston, MA 02111 and President and Director, Executive Vice President and Chief
Operating Officer of the Advisor since April,
2003 (formerly Chief Operations Officer of
Mutual Funds, Liberty Financial Companies,
Inc. from August, 2000 to November, 2001;
Executive Vice President of Stein Roe & Farnham
Incorporated (Stein Roe) from April, 1999 to
April, 2003; Director of Colonial Management
Associates, Inc. (Colonial) from April, 1999 to
April, 2003; Director of Stein Roe from September,
2000 to April, 2003) President of Columbia
Funds and Galaxy Funds since February, 2003
(formerly Vice President from September 2002
to February 2003); Manager of Stein Roe Floating
Rate Limited Liability Company since October,
2000; (formerly Vice President of the Columbia
Funds from April, 1999 to August, 2000; Chief
Operating Officer and Chief Compliance Officer,
Putnam Mutual Funds from December, 1993 to
March, 1999).
Mark A. Wentzien Secretary 2000 Vice President of the Advisor. Prior to his current
(Age 42) positions, Mr. Wentzien was Associate Counsel of
1300 S.W. Sixth Avenue the Advisor.
Portland, OR 97201
1 In December 2000, the boards of each of the former Liberty Funds and former
Stein Roe Funds were combined into one board of trustees responsible for the
oversight of both fund groups (collectively, the "Liberty Board"). In
October 2003, the trustees on the Liberty Board were elected to the boards
of the Columbia Funds (the "Columbia Board") and of the CMG Funds (the "CMG
Funds Board"); simultaneous with that election, Patrick J. Simpson and
Richard L. Woolworth, who had been directors of the Columbia Board and
trustees on the CMG Funds Board, were appointed to serve as trustees of the
Liberty Board. The date shown is the earliest date on which a trustee/
director was elected or appointed to the board of a Fund in the Columbia
Funds Complex).
2 Mr. Mayer is an "interested person" (as defined in the Investment Company
Act of 1940 (1940 Act)) by reason of his affiliation with WR Hambrecht + Co.
Mr. Palombo is an interested person as an employee of the Advisor.
3 Messrs. Lowry, Neuhauser and Mayer each also serve as a director/trustee of
the All-Star Funds, currently consisting of 2 funds, which are advised by an
affiliate of the Advisor.
4 Mr. Neuhauser and Ms. Verville also serve as disinterested directors of
Columbia Management Multi-Strategy Hedge Fund, LLC, which is advised by the
Advisor.
5 Mr. Palombo also serves as an interested director of Columbia Management
Multi-Strategy Hedge Fund, LLC, which is advised by the Advisor.
182
This page intentionally left blank.
183
This page intentionally left blank.
184
This page intentionally left blank.
185
EAGLE HEAD LOGO
ADVISED BY COLUMBIA MANAGEMENT ADVISORS, INC.
DIRECTORS INVESTMENT ADVISOR
--------------------- ------------------
DOUGLAS A. HACKER COLUMBIA MANAGEMENT ADVISORS, INC.
JANET LANGFORD KELLY 1300 S.W. SIXTH AVENUE
RICHARD W. LOWRY PORTLAND, OREGON 97201
CHARLES R. NELSON
JOHN J. NEUHAUSER DISTRIBUTOR
PATRICK J. SIMPSON ------------------
THOMAS E. STIZEL COLUMBIA FUNDS DISTRIBUTOR, INC.
THOMAS C. THEOBALD ONE FINANCIAL CENTER
ANNE-LEE VERVILLE BOSTON, MASSACHUSETTS 02111-2621
RICHARD L. WOOLWORTH
WILLIAM E. MAYER LEGAL COUNSEL
JOSEPH R. PALOMBO ------------------
STOEL RIVES LLP
900 S.W. FIFTH AVENUE, SUITE 2300
PORTLAND, OREGON 97204-1268
TRANSFER AGENT
----------------------------------
COLUMBIA 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 Columbia 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-02/216P-0803 (10/03) 03/3223
PRSRT STD
U.S. POSTAGE
PAID
HOLLISTON, MA
PERMIT NO. 20
ITEM 2. CODE OF ETHICS.
(a) The registrant has, as of the end of the period covered by this report,
adopted a code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless
of whether these individuals are employed by the Registrant or a third
party.
(b) During the period covered by this report, there were not any amendments to
a provision of the code of ethics adopted in 2(a) above.
(c) During the period covered by this report, there were not any waivers or
implicit waivers to a provision of the code of ethics adopted in 2(a)
above.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's Board of Trustees (the "Board") determined on July 30, 2003
that the Audit Committee of the Board did not have an Audit Committee financial
expert. On October 7, 2003, shareholders of the registrant elected nine new
trustees, as well as three incumbent trustees, to the Board. The new Board is
expected to appoint as Audit Committee members certain of the new trustees who
have been determined by other affiliated registrants advised by the registrant's
advisor, to be Audit Committee financial experts. The new Board has not yet met
to reconstitute the Audit Committee or to consider the determination made by the
other affiliated registrants.
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.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive officer and principal financial
officer, based on their evaluation of the registrant's disclosure controls
and procedures as of a date within 90 days of the filing of this report,
have concluded that such controls and procedures are adequately designed to
ensure that information required to be disclosed by the registrant in Form
N-CSR is accumulated and communicated to the registrant's management,
including the principal executive officer and principal financial officer,
or persons performing similar functions, as appropriate to allow timely
decisions regarding required disclosure.
(b) There were no changes in the registrant's internal control over financial
reporting that occurred during the registrant's last fiscal half-year (the
registrant's second fiscal half-year in the case of an annual report) that
has materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
ITEM 10. EXHIBITS.
(a)(1) Code of ethics required to be disclosed under Item 2 of Form N-CSR
attached hereto as Exhibit 99.CODE ETH
(a)(2) Certifications pursuant to Rule 30a-2(a) under the Investment Company Act
of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT.
(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of
1940 (17 CFR 270.30a-2(b)) attached hereto as Exhibit 99.906CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Columbia Real Estate Equity Fund, Inc.
-----------------------------------------------------------
By (Signature and Title) /s/ Joseph R. Palombo
----------------------------------------------
Joseph R. Palombo, President
Date November 7, 2003
-------------------------------------------------------------------
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/ Joseph R. Palombo
----------------------------------------------
Joseph R. Palombo, President
Date November 7, 2003
-------------------------------------------------------------------
By (Signature and Title) /s/ J. Kevin Connaughton
----------------------------------------------
J. Kevin Connaughton, Treasurer
Date November 7, 2003
-------------------------------------------------------------------