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 811-6529
---------------------
Columbia Funds Trust VI
------------------------------------------------------------------------------
(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: July 31, 2004
------------------
Date of reporting period: January 31, 2004
-----------------
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
GROWTH & INCOME FUND
Semiannual Report
January 31, 2004
Photo of: Man and woman smiling.
Logo: Columbia Funds
A Member of Columbia Management Group
Table of Contents
Fund Profile .................................. 1
Performance Information ....................... 2
Economic Update ............................... 3
Portfolio Managers' Report .................... 4
Financial Statements .......................... 6
Investment Portfolio ....................... 7
Statement of Assets and Liabilities ........ 11
Statement of Operations .................... 12
Statements of Changes in Net Assets ........ 13
Notes to Financial Statements .............. 15
Financial Highlights ...................... 20
Important Information
About This Report ............................ 24
Economic and market conditions change frequently. There is no assurance that the
trends described in this report will continue or commence.
- --------------------------------
Not FDIC Insured
May Lose Value
No Bank Guarantee
- --------------------------------
TO OUR FELLOW SHAREHOLDERS
- --------------------------------------------------------------------------------
Columbia Growth & Income Fund
Before introducing your Semiannual Report, we want to address recent press
reports about allegations of market timing in certain Columbia funds. The
trustees of the funds and the people of Columbia Management are deeply concerned
about these events. Columbia Management has assured investors that full
compensation will be paid for monetary damages, and all of us have been working
to implement procedures to minimize the possibility of a recurrence. We are
committed to serving the interests of our shareholders and to help you achieve
your financial goals.
In the pages that follow, you'll find valuable information about the economic
environment and the performance of Columbia Growth & Income Fund during the
six-month period ended January 31, 2004. The "Economic Update" provides an
overview of the investing environment during the period covered by this report.
In the "Portfolio Managers' Report," your fund's management team discusses
investment performance and the impact of decisions made during the period. We
hope that you will take time to read the report and discuss it with your
financial advisor.
As always, thank you for choosing Columbia funds. It is a privilege to play a
role in your financial future, and we value your business. If you have any
questions about your account, please feel free to call Columbia's shareholder
service department at 800-345-6611.
Sincerely,
/s/ Thomas C. Theobald /s/ J. Kevin Connaughton
Thomas C. Theobald J. Kevin Connaughton
Chairman, Board of Trustees President, Columbia Funds
Thomas C. Theobald was elected independent chairman of the Board of Trustees of
Columbia funds in December 2003. Mr. Theobald has served on the board of many
Columbia funds for more than seven years.
J. Kevin Connaughton was named president of Columbia Funds on February 27, 2004.
Summary
o For the six-month period ended January 31, 2004, the fund's class A shares
returned 13.00% without sales charge.
o The fund underperformed its new benchmark, the Russell 1000 Value Index, as
well as its previous benchmark, the S&P 500 Index, and its peer group, the
Morningstar Large Value Category.
o The fund provided a strong absolute return for the period, but its
performance fell short of its benchmark and peer group because the fund
emphasized high-quality stocks while lower-quality speculative stocks were
the market's strongest performers.
Objective
Seeks long-term
growth and income
Total net assets
$2.015 billion
Class A shares 13.00%
Russell 1000 Value Index 16.86%
Morningstar style box
Graphic:
Morningstar style box
Style: Value
Size: Large
FUND PROFILE
- --------------------------------------------------------------------------------
Columbia Growth & Income Fund
The information below gives you a snapshot of your fund at the end of the
reporting period. Because your fund is actively managed, there is no guarantee
that these breakdowns and percentages will be maintained in the future.
Top 5 sectors as of 01/31/04 (%)
Financials 32.8
Energy 12.7
Industrials 10.3
Consumer staples 7.9
Consumer discretionary 7.9
Top 10 holdings as of 01/31/04 (%)
Citigroup 5.4
iShares Russell 1000 2.9
Exxon Mobil 2.8
Bank of America 2.4
Halliburton 2.2
American International Group 2.1
ConocoPhillips 2.1
Aetna 2.1
U.S. Bancorp 2.1
Waste Management 2.1
Sector breakdown and portfolio holdings are calculated as a percentage of net
assets.
(C)2004 Morningstar, Inc. All Rights Reserved. The information contained herein:
(1) is proprietary to Morningstar and/or its content providers; (2) may not be
copied or distributed; and (3) is not warranted to be accurate, complete or
timely. Neither Morningstar nor its content providers are responsible for any
damages or losses arising from any use of this information. Past performance is
no guarantee of future results.
The Morningstar Style BoxTM reveals a fund's investment strategy. For equity
funds the vertical axis shows the market capitalization of the stocks owned and
the horizontal axis shows investment style (value, blend or growth). For
fixed-income funds the vertical axis shows the average credit quality of the
bonds owned, and the horizontal axis shows interest rate sensitivity as measured
by a bond's duration (short, intermediate or long). All of these numbers are
drawn from the data most recently provided by the fund and entered into
Morningstar's database as of month-end. Although the data are gathered from
reliable sources, Morningstar cannot guarantee completeness and accuracy. As of
01/31/04.
1
Performance of a $10,000 investment
02/01/94 - 01/31/04 ($)
sales charge: without with
Class A 29,931 28,210
Class B 27,761 27,761
Class C 27,767 27,767
Class Z 30,206 n/a
Performance data quoted represents past performance and current performance may
be lower or higher. Past performance is no guarantee of future results. The
investment return and principal value will fluctuate so that shares may be worth
more or less than original cost. Please visit www.columbiafunds.com for daily
and most recent month-end performance updates.
PERFORMANCE INFORMATION
- --------------------------------------------------------------------------------
Columbia Growth & Income Fund
Value of a $10,000 investment 02/01/94 - 01/31/04
Line Chart:
Class A shares Class A shares Russell 1000
without sales charge with sales charge Value Index S&P 500 Index
02/1994 10000 9425 10000 10000
9766 9204.46 9659 9728
9410.52 8869.41 9298.72 9303.86
9426.52 8884.49 9477.25 9422.95
9539.63 8991.1 9587.19 9577.48
9315.45 8779.81 9357.1 9342.84
9510.15 8963.31 9648.1 9649.28
9932.4 9361.28 9925.97 10044.9
9810.23 9246.14 9597.42 9798.8
9940.7 9369.11 9730.82 10019.3
9615.64 9062.74 9338.67 9654.57
9764.68 9203.22 9447 9797.46
10008.8 9433.3 9737.97 10051.2
10479.2 9876.66 10123.6 10443.2
10731.8 10114.7 10346.3 10751.3
10966.8 10336.2 10673.3 11067.4
11419.7 10763.1 11121.5 11510.1
11629.8 10961.1 11271.7 11777.1
12006.6 11316.3 11663.9 12168.1
11937 11250.6 11828.4 12198.5
12348.8 11638.8 12256.6 12713.3
12269.8 11564.3 12135.2 12667.5
12717.6 11986.4 12749.3 13223.6
12645.2 11918.1 13069.3 13478.9
12987.9 12241 13477 13937.1
13197 12438.1 13579.5 14066.8
13206.2 12446.8 13810.3 14201.8
13690.9 12903.6 13862.8 14410.6
14033.1 13226.2 14036.1 14782.4
13821.2 13026.5 14047.3 14838.5
13076.3 12324.4 13516.3 14182.7
13486.9 12711.4 13902.9 14481.9
14078.9 13269.4 14456.2 15297.2
14442.2 13611.7 15015.7 15719.5
15502.2 14610.8 16104.3 16907.8
15133.3 14263.1 15898.2 16573.1
16171.4 15241.5 16669.2 17608.9
16202.1 15270.5 16914.3 17746.2
15630.2 14731.5 16305.4 17016.9
16575.8 15622.7 16990.2 18032.8
17562.1 16552.3 17940 19131
18261.1 17211 18709.6 19988
19926.5 18780.7 20116.5 21579.1
19177.2 18074.5 19400.4 20370.7
20249.2 19084.9 20572.2 21487
19281.3 18172.7 19998.2 20769.3
20010.2 18859.6 20882.1 21730.9
20456.4 19280.2 21491.9 22104.7
20667.1 19478.7 21186.7 22350
22169.6 20894.8 22612.6 23961.5
23260.3 21922.9 23996.5 25188.3
23248.7 21911.9 24157.2 25442.7
22651.2 21348.8 23799.7 25005.1
23496.1 22145.1 24104.3 26020.3
23073.2 21746.5 23680.1 25744.5
19342.2 18230.1 20156.5 22021.8
20199.1 19037.7 21313.5 23433.4
21865.5 20608.3 22965.3 25338.6
23214.6 21879.8 24035.5 26874.1
24558.8 23146.6 24852.7 28422
25209.6 23760 25051.5 29610.1
24155.8 22766.8 24698.3 28689.2
24952.9 23518.2 25209.5 29836.8
25639.2 24164.9 27564.1 30991.5
25282.8 23829 27260.9 30260.1
26779.5 25239.7 28051.4 31939.5
26080.6 24580.9 27229.5 30943
25785.8 24303.2 26219.3 30791.4
24806 23379.6 25304.3 29947.7
25847.8 24361.6 26761.8 31843.4
26129.6 24627.1 26553.1 32489.8
27360.3 25787.1 26680.5 34403.4
25896.5 24407.5 25810.7 32676.4
24894.3 23462.9 23893 32058.8
27689.9 26097.8 26807.9 35194.2
27689.9 26097.8 26497 34134.8
27504.4 25922.9 26775.2 33435.1
27160.6 25598.9 25551.6 34260.9
27331.7 25760.2 25870.9 33726.4
28345.7 26715.8 27309.4 35820.8
28623.5 26977.7 27560.6 33929.5
30086.2 28356.2 28238.6 33787
30257.7 28517.9 27191 31124.6
31803.8 29975.1 28553.2 31277.1
31689.3 29867.2 28661.7 32387.4
31382 29577.5 27864.9 29433.7
30358.9 28613.3 26881.3 27567.6
30960 29179.8 28198.5 29709.6
31526.6 29713.8 28832.9 29908.7
30779.4 29009.6 28192.9 29181.9
31607.4 29790 28133.7 28895.9
31379.8 29575.5 27005.5 27087
30278.4 28537.4 25104.3 24898.4
30229.9 28491.7 24888.4 25373.9
31414.9 29608.6 26334.4 27320.1
31631.7 29812.9 26955.9 27560.5
31119.3 29329.9 26748.4 27158.2
30730.3 28963.3 26791.2 26634
32300.6 30443.3 28058.4 27635.4
31015 29231.7 27096 25960.7
30996.4 29214.1 27231.5 25768.6
27630.2 26041.5 25668.4 23933.9
25461.2 23997.2 23281.2 22069.4
25672.6 24196.4 23458.1 22212.9
22093.8 20823.4 20849.6 19798.3
24033.6 22651.7 22394.6 21540.6
25850.6 24364.2 23805.4 22809.3
24754.5 23331.1 22772.3 21470.4
23870.8 22498.2 22221.2 20907.9
22519.7 21224.8 21627.9 20594.3
22429.6 21139.9 21664.6 20794.1
24015.4 22634.5 23571.1 22507.5
25979.9 24486 25093.8 23693.6
26593 25063.9 25407.5 23996.9
26484 24961.1 25786.1 24419.3
26915.6 25368 26188.3 24895.4
26409.6 24891.1 25931.7 24631.5
27328.7 25757.3 27518.7 26025.7
27599.2 26012.3 27892.9 26254.7
29489.8 27794.1 29611.2 27630.5
01/2004 29931 28210 30129 28131
On October 13, 2003, the fund's primary benchmark was changed to the Russell
1000 Value Index. Prior to that date, the fund's benchmark was the Standard &
Poor's (S&P) 500 Index. All results shown assume reinvestment of distributions.
The graph and table do not reflect the deduction of taxes a shareholder would
pay on fund distributions or the redemption of fund shares. The Russell 1000
Value Index measures the performance of those Russell 1000 companies with lower
price-to-book ratios and lower forecasted growth values. The S&P 500 Index is an
unmanaged index that tracks the performance of 500 widely held, large
capitalization US stocks. Unlike mutual funds, 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.
Average annual total return as of 01/31/04 (%)
Share class A B C Z
Inception 07/01/92 07/01/92 07/01/94 02/07/01
Sales charge without with without with without with without
6-month (cumulative) 13.00 6.51 12.56 7.56 12.54 11.54 13.12
1-year 25.38 18.17 24.48 19.48 24.47 23.47 25.77
5-year 3.49 2.27 2.72 2.44 2.71 2.71 3.68
10-year 11.59 10.93 10.75 11.75 10.75 10.75 11.69
Average annual total return as of 12/31/03 (%)
Share class A B C Z
Sales charge without with without with without with without
6-month (cumulative) 10.90 4.52 10.55 5.55 10.55 9.55 11.09
1-year 19.14 12.29 18.33 13.33 18.36 17.36 19.51
5-year 3.73 2.51 2.95 2.67 2.96 2.96 3.92
10-year 11.65 10.99 10.83 10.83 10.83 10.83 11.75
All results shown assume reinvestment of distributions. The "with sales charge"
returns include the maximum 5.75% sales charge for class A shares, the
appropriate class B contingent deferred sales charge for the holding period
after purchase as follows: first year - 5%, second year - 4%, third year - 3%,
fourth year - 3%, fifth year - 2%, sixth year - 1%, thereafter - 0% and the
class C contingent deferred sales charge of 1% for the first year only.
Performance for different share classes 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.
Class C and Z share (newer class shares) performance information includes
returns of the fund's class B and A shares (older class shares), respectively,
as their expense structures more closely resemble those for the newer class
shares for periods prior to the inception date of the newer class shares. Total
returns are not restated to reflect any expense differential (e.g., Rule 12b-1
fees) between the older class shares and the newer class shares. Had the expense
differential been reflected, the returns for the periods prior to the inception
of newer class shares would have been different.
2
Summary
For the six-month period that
ended January 31, 2004
o The US stock market benefited from investor enthusiasm and an increase in
corporate profits. Both the Russell 3000 Index, which tracks approximately
98% of the US stock market, and the S&P 500 Index posted double-digit
returns this period.
Russell 3000 Index 16.05%
S&P 500 Index 15.23%
o Performance in the fixed-income universe was led by high-yield bonds. As
measured by the Merrill Lynch US High Yield, Cash Pay Index, this sector
posted a return approximately seven percentage points higher than the
return for investment-grade bonds, as measured by the Lehman Brothers
Aggregate Bond Index.
Merrill Lynch Index 11.80%
Lehman Index 4.49%
The S&P 500 Index is an unmanaged index that tracks the performance of 500
widely held, large capitalization US stocks.
The Russell 3000 Index is an unmanaged index that tracks the performance of the
3,000 largest US companies based on total market capitalizations.
The Merrill Lynch US High Yield, Cash Pay Index is an unmanaged index that
tracks the performance of non-investment-grade corporate bonds.
The Lehman Brothers Aggregate Bond Index is a market value-weighted index that
tracks fixed-rate, publicly placed, dollar-denominated, and non-convertible
investment grade debt issues.
ECONOMIC UPDATE
- --------------------------------------------------------------------------------
Columbia Growth & Income Fund
After struggling for two years to maintain solid, forward movement, the US
economy steamed ahead during the six-month period ended January 31, 2004. The
economy grew at an annualized pace of 8.2% in the third quarter of 2003.
Although that pace slowed to an estimated 4.0% in the fourth quarter, there was
widespread agreement that the efforts of the Federal Reserve Board to stimulate
the economy through low short-term interest rates had finally been rewarded. In
fact, the significant upswing in growth over the past six months was the result
of a combination of factors. A sizeable tax package gave disposable income a
boost. Income taxes fell across all tax brackets. And, many taxpayers received
tax rebate checks late last summer, which helped keep consumer spending high
throughout the period.
The business sector also made a contribution to the economy's growth. Industrial
production rose over the past six months, and business spending--especially on
technology-related items--showed strength. Corporate profits rose sharply, and
orders for durable goods exceeded expectations. Even the labor market improved
during the period. After unemployment peaked at 6.4% in June 2003, it declined
to 5.6% in January.
The US stock market continued to head higher, expanding on a rally that began in
the spring of 2003. The S&P 500 Index returned 15.23% for the six-month period
as all major sectors of the market benefited from renewed investor enthusiasm
and rising corporate profits. Technology was the strongest sector early in the
period, but more defensive issues, such as utilities and health care, picked up
as investors appeared to hedge their bets on the economy.
As the economy gained strength early in the period, interest rates shot up and
unsettled the bond market. However, the yield on the benchmark 10-year US
Treasury bond peaked early in September, and most bond sectors eked out modest
gains for the period as interest rates edged lower. The Lehman Brothers
Aggregate Bond Index, a broad measure of investment-grade bond performance,
returned 4.49%. High-yield bonds continued to lead the fixed-income markets. The
Merrill Lynch US High Yield, Cash Pay Index returned 11.80%.
Money market fund yields remained below 1%, reflecting historically low
short-term interest rates. The Investment Company Institute, which tracks assets
in and out of mutual funds, reported that money continued to flow out of taxable
money market funds during 2003 as investors sought alternatives to the low
yields offered by short-term cash equivalents. Net new cash flow to money market
funds turned negative in 2002 and remained negative through most of 2003.
3
Net asset value per share
as of 01/31/04 ($)
Class A 16.45
Class B 15.48
Class C 15.59
Class Z 16.45
Distributions declared per share
as of 08/01/03 - 01/31/04 ($)
Class A 0.14
Class B 0.03
Class C 0.03
Class Z 0.18
Portfolio holdings discussed
in this report (%)
Textron 1.8
ConocoPhillips 2.1
Exxon Mobil 2.8
Citigroup 5.4
Nokia 1.3
Holdings are calculated as a percentage of net assets as of January 31, 2004,
and are subject to change.
PORTFOLIO MANAGERS' REPORT
- --------------------------------------------------------------------------------
Columbia Growth & Income Fund
For the six-month period ended January 31, 2004, Columbia Growth & Income Fund
class A shares returned 13.00% without sales charge. This was less than the
fund's new benchmark, the Russell 1000 Value Index, which returned 16.86% over
the same period. The new benchmark was selected because we believe it more
accurately reflects the performance of value stocks, which the fund emphasizes.
In addition, the fund also gained less ground than both its previous benchmark
and its peer group. The S&P 500 Index posted a 15.23% return for the period. The
average return of the Morningstar Large Value Category was 16.09%.1
FOCUS ON HIGH-QUALITY VALUE STOCKS AND PORTFOLIO CHANGES
The fund's double-digit return reflected solid gains from industrial and energy
companies. However, our emphasis on companies with more dependable earnings hurt
the fund's relative performance in a rapidly-rising market that favored the most
speculative stocks. During this reporting period we continued to restructure the
portfolio. We re-evaluated the portfolio's sector weightings. We reduced some
sectors, which we felt were overweight relative to the benchmark, while
maintaining our focus on stock selection. However, the process was not completed
until late in the period, and the fund did not have the full benefit of the
improved diversification that resulted from the process. We have focused the
fund on higher-quality value stocks which offer a downside cushion as well as
upside opportunity.
INDUSTRIAL AND ENERGY STOCKS RESPOND TO AN IMPROVING ECONOMY
The period began amid lingering concerns about the durability and breadth of the
economic recovery. But by late summer, positive economic news became the rule
rather than the exception. Capital spending picked up. Both inflation and
interest rates remained low, creating an accommodating environment for stocks.
In this environment, some of the fund's best performers were industrial and
energy companies. In the industrial sector, diversified manufacturer Textron
benefited from the economic rebound and performed well. Although the energy
sector was not one of the market's strongest performers, several of the fund's
top performers were energy-related companies, including ConocoPhillips and Exxon
Mobil. Oil and gas prices rose above the market's expectations during the
period, as US production of natural gas declined and Iraqi oil output stayed
low. Rapidly growing demand for oil in China also helped drive the price of
crude oil higher, which contributed to higher returns in the energy sector.
SOLID RETURNS FROM FINANCIAL AND TECHNOLOGY STOCKS
Financial services and technology stocks were strong performers during the
period, and the fund participated in these gains. In financial services, the
fund's largest holding-Citigroup-was also its top contributor to performance.
The stock posted a 12.0% return for the six-month period.
Within technology, the fund's investment in Nokia, the world's number one cell
phone manufacturer, also made a strong contribution to
1 2004 by Morningstar Inc. All rights reserved. The information contained
herein is the proprietary information of Morningstar Inc., may not be
copied or redistributed for any purpose and may only be used for
noncommercial, personal purposes. The information contained herein is not
represented or warranted to be accurate, correct, complete or timely.
Morningstar, Inc. shall not be responsible for investment decisions,
damages or other losses resulting from the use of this information. Past
performance is no guarantee of future performance. Morningstar, Inc. has
not granted consent for it to be considered or deemed an "expert" under the
Securities Act of 1933.
4
In an economic environment that shows signs of being able to sustain a
reasonable pace of growth, we believe that value stocks have the potential to
continue to do well.
- --------------------------------------------------------------------------------
Columbia Growth & Income Fund
performance. However, those gains were partially offset by a loss from our
investment in contract manufacturer, Celestica. The company's earnings fell
short of expectations as management was unable to improve margins at its
European operation. Realizing that improvement may take much longer than we were
led to believe, we sold the stock.
POSITIONED FOR A RECOVERING ECONOMY
In an economic environment that shows signs of being able to sustain a
reasonable pace of growth, we believe that value stocks have the potential to
continue to do well. Personal income has risen, capital expenditures have
finally kicked in and some tangible signs of job growth appeared in the final
months of the reporting period. We are encouraged that inflation remains low,
which has helped keep interest rates at or near historical lows. We remain
focused on high-quality stocks with the potential to prosper under a variety of
economic conditions. We began the period confident in our team and confident in
the changes we have made to enhance our investment process. We remain committed
to investing for the long term and will implement our process in a deliberate,
disciplined manner.
Photo of: Brian Cunningham
Brian Cunningham has co-managed Columbia Growth & Income Fund since November
2003 and has been with the advisor and its predecessors since 1987.
/s/ Brian Cunningham
Photo of: Greg Miller
Greg Miller has co-managed the fund since April 2003 and has been with the
advisor and its predecessors since 1985.
/s/ Greg Miller
Photo of: Richard Dahlberg
Richard Dahlberg, CFA, has co-managed the fund since October 2003 and has been
with the advisor since 2003.
/s/ Richard Dahlberg
An investment in the fund offers significant long-term growth potential, but
also involves certain risks. The fund may be affected by stock market
fluctuations that occur in response to economic and business developments.
Changes in interest rates, changes in financial strength of issuers of
lower-rated bonds and foreign, political and economic developments also may
affect the fund's performance.
Value stocks are securities of companies that may have experienced adverse
business or industry developments or may be subject to special risks that have
caused the stocks to be out of favor. If the advisor's assessment of a company's
prospects is wrong, the price of its stock may not approach the value the
advisor has placed on it.
5
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
January 31, 2004 Columbia Growth & Income Fund
A GUIDE TO UNDERSTANDING YOUR FUND'S FINANCIAL
STATEMENTS
-----------------------------------------------------
Investment Portfolio The investment portfolio details all of the fund's
holdings and their market value as of the last day of
the reporting period. Portfolio holdings are
organized by type of asset, industry, country or
geographic region (if applicable) to demonstrate
areas of concentration and diversification.
-----------------------------------------------------
Statement of Assets This statement details the fund's assets,
and Liabilities liabilities, net assets and share price for each
share class. Net assets are calculated by subtracting
all the fund's liabilities (including any unpaid
expenses) from the total of the fund's investment and
non-investment assets. The share price for each class
is calculated by dividing net assets for that class
by the number of shares outstanding in that class as
of the last day of the reporting period.
-----------------------------------------------------
Statement of Operations This statement details income earned by the fund and
the expenses charged to the fund. The Statement of
Operations also shows any net gain or loss the fund
realized on the sales of its holdings during the
period, as well as any unrealized gains or losses
recognized over the period. The total of these
results represents the fund's net increase or
decrease in net assets from operations.
-----------------------------------------------------
Statement of Changes This statement demonstrates how the fund's net assets
in Net Assets were affected by its operating results, distributions
to shareholders and shareholder transactions (e.g.,
subscriptions, redemptions and dividend
reinvestments). The Statement of Changes in Net
Assets also reconciles changes in the number of
shares outstanding.
-----------------------------------------------------
Financial Highlights The financial highlights demonstrate how the fund's
net asset value per share was affected by the fund's
operating results. The financial highlights table
also discloses certain key fund ratios (e.g., fund
expenses and net investment income as a percentage of
average net assets).
-----------------------------------------------------
Notes to These notes disclose the organizational background of
Financial Statements the fund, its significant accounting policies
(including those surrounding security valuation,
income recognition and distributions to
shareholders), federal tax information, fees and
compensation paid to affiliates and significant risk
and contingencies.
6
INVESTMENT PORTFOLIO
- --------------------------------------------------------------------------------
Columbia Growth & Income Fund
January 31, 2004 (unaudited)
Common Stocks - 96.7%
CONSUMER DISCRETIONARY - 7.9% Shares Value ($)
- ------------------------------------------ -----------------------------------------------------------------------------
Auto Components - 1.0% Delphi Corp. 1,921,482 20,329,279
Auto Components Total 20,329,279
-----------------------------------------------------------------------------
Hotels, Restaurants & Leisure - 1.8% Harrah's Entertainment, Inc. 98,386 5,214,458
Wendy's International, Inc. 776,300 30,842,399
Hotel, Restaurants & Leisure Total 36,056,857
Leisure Equipment & Products - 0.4% Mattel, Inc. 473,800 8,959,558
Leisure Equipment & Products Total 8,959,558
-----------------------------------------------------------------------------
Media - 3.7% Clear Channel Communications, Inc. 221,006 9,943,060
Gannett Co., Inc. 114,000 9,770,940
McGraw-Hill Companies., Inc. 301,900 22,648,538
Time Warner, Inc. (a) 1,281,700 22,519,469
Viacom, Inc., Class A 223,600 9,071,452
Media Total 73,953,459
-----------------------------------------------------------------------------
Specialty Retail - 1.0% Office Depot, Inc. (a) 1,224,700 19,533,965
Specialty Retail Total 19,533,965
-----------
CONSUMER DISCRETIONARY TOTAL 158,833,118
CONSUMER STAPLES - 7.9%
- ------------------------------------------ -----------------------------------------------------------------------------
Beverages - 1.5% PepsiCo, Inc. 649,400 30,690,644
Beverages Total 30,690,644
-----------------------------------------------------------------------------
Food Products - 2.0% ConAgra Foods, Inc. 808,700 20,977,678
Kraft Foods, Inc., Class A 621,200 20,008,852
Food Products Total 40,986,530
-----------------------------------------------------------------------------
Household Products - 3.4% Clorox Co. 420,000 20,529,600
Kimberly-Clark Corp. 379,500 22,413,270
Procter & Gamble Co. 242,500 24,511,900
Household Products Total 67,454,770
-----------------------------------------------------------------------------
Tobacco - 1.0% Altria Group, Inc. 366,488 20,373,068
Tobacco Total 20,373,068
-----------
CONSUMER STAPLES TOTAL 159,505,012
ENERGY - 12.7%
- ------------------------------------------ -----------------------------------------------------------------------------
Energy Equipment & Services - 3.4% Baker Hughes, Inc. 669,200 23,475,536
Halliburton Co. 1,474,700 44,462,205
Energy Equipment & Services Total 67,937,741
-----------------------------------------------------------------------------
Oil & Gas - 9.3% BP PLC, ADR 848,810 40,403,356
ConocoPhillips 641,568 42,266,500
Exxon Mobil Corp. 1,378,630 56,234,318
Marathon Oil Corp. 948,800 30,817,024
Royal Dutch Petroleum Co., N.Y. Shares 403,300 19,116,420
Oil & Gas Total 188,837,618
-----------
ENERGY TOTAL 256,775,359
See notes to investment portfolio.
7
- --------------------------------------------------------------------------------
January 31, 2004 (unaudited) Columbia Growth & Income Fund
Common Stocks - (continued)
FINANCIALS - 32.8% Shares Value ($)
- ------------------------------------------ -----------------------------------------------------------------------------
Banks - 10.4% Bank of America Corp. 600,829 48,943,530
Bank of New York Co., Inc. 873,000 27,717,750
Bank One Corp. 628,961 31,831,716
Fifth Third Bancorp 190,500 11,008,995
National City Corp. 272,163 9,395,067
U.S. Bancorp 1,475,000 41,698,250
Wells Fargo & Co. 689,500 39,584,195
Banks Total 210,179,503
-----------------------------------------------------------------------------
Diversified Financials - 12.9% American Express Co. 396,200 20,539,008
Citigroup, Inc. 2,199,900 108,851,052
Countrywide Financial Corp. 177,733 14,849,592
Freddie Mac 341,849 21,338,215
Goldman Sachs Group, Inc. 103,435 10,296,954
J.P. Morgan Chase & Co. 769,101 29,910,338
Merrill Lynch & Co., Inc. 342,067 20,110,119
Morgan Stanley 345,916 20,135,770
State Street Corp. 269,600 14,517,960
Diversified Financials Total 260,549,008
-----------------------------------------------------------------------------
Insurance - 8.0% AFLAC, Inc. 270,600 9,979,728
Ambac Financial Group, Inc. 268,800 20,098,176
American International Group, Inc. 612,800 42,558,960
Berkshire Hathaway, Inc., Class A (a) 349 31,232,010
Lincoln National Corp. 366,178 16,166,759
Travelers Property Casualty Corp., Class B 1,176,300 21,291,030
Willis Group Holdings Ltd. 546,308 20,213,396
Insurance Total 161,540,059
-----------------------------------------------------------------------------
Real Estate - 1.5% Archstone-Smith Trust, REIT 325,400 8,925,722
Kimco Realty Corp., REIT 220,749 10,183,151
Vornado Realty Trust, REIT 179,160 10,024,002
Real Estate Total 29,132,875
-----------
FINANCIALS TOTAL 661,401,445
HEALTH CARE - 5.2%
- ------------------------------------------ -----------------------------------------------------------------------------
Health Care Providers & Services - 2.6% Aetna, Inc. 596,600 41,762,000
McKesson Corp. 331,061 9,726,572
Health Care Providers & Services Total 51,488,572
Pharmaceuticals - 2.6% Bristol-Myers Squibb Co. 337,095 9,455,515
Johnson & Johnson 178,700 9,546,154
Merck & Co., Inc. 213,838 10,178,689
Pfizer, Inc. 649,120 23,777,266
Pharmaceuticals Total 52,957,624
-----------
HEALTH CARE TOTAL 104,446,196
INDUSTRIALS - 10.3%
- ------------------------------------------ -----------------------------------------------------------------------------
Aerospace & Defense - 3.9% General Dynamics Corp. 230,000 21,028,900
Honeywell International, Inc. 672,200 24,279,864
Raytheon Co. 714,400 21,796,344
United Technologies Corp. 112,400 10,738,696
Aerospace & Defense Total 77,843,804
-----------------------------------------------------------------------------
See notes to investment portfolio.
8
- --------------------------------------------------------------------------------
January 31, 2004 (unaudited) Columbia Growth & Income Fund
Common Stocks - (continued)
INDUSTRIALS - (continued) Shares Value ($)
- ------------------------------------------ -----------------------------------------------------------------------------
Commercial Services & Supplies - 2.6% Avery Dennison Corp. 177,200 11,014,752
Waste Management, Inc. 1,488,710 41,326,590
Commercial Services & Supplies Total 52,341,342
-----------------------------------------------------------------------------
Industrial Conglomerates - 1.8% Textron, Inc. 668,100 35,596,368
Industrial Conglomerates Total 35,596,368
-----------------------------------------------------------------------------
Machinery - 2.0% Deere & Co. 311,210 19,481,746
Dover Corp. 533,100 22,027,692
Machinery Total 41,509,438
-----------
INDUSTRIALS TOTAL 207,290,952
INFORMATION TECHNOLOGY - 6.8%
- ------------------------------------------ -----------------------------------------------------------------------------
Communications Equipment - 1.4% Nokia Oyj, ADR 1,305,400 26,969,564
Communications Equipment Total 26,969,564
-----------------------------------------------------------------------------
Computers & Peripherals - 2.0% Hewlett-Packard Co. 795,754 18,930,988
International Business Machines Corp. 208,800 20,719,224
Computers & Peripherals Total 39,650,212
-----------------------------------------------------------------------------
Information Technology Consulting & Accenture Ltd., Class A (a) 882,935 20,899,071
Services - 1.0% Information Technology Consulting & Services Total 20,899,071
-----------------------------------------------------------------------------
Office Electronics - 2.0% Xerox Corp. (a) 2,742,200 40,145,808
Office Electronics Total 40,145,808
-----------------------------------------------------------------------------
Software - 0.4% Microsoft Corp. 308,600 8,532,790
Software Total 8,532,790
-----------
INFORMATION TECHNOLOGY TOTAL 136,197,445
MATERIALS - 3.1%
- ------------------------------------------ -----------------------------------------------------------------------------
Chemicals - 1.4% Air Products & Chemicals, Inc. 552,294 27,564,993
Chemicals Total 27,564,993
-----------------------------------------------------------------------------
Paper & Forest Products - 1.7% MeadWestvaco Corp. 739,700 19,949,709
Weyerhaeuser Co. 239,161 14,698,835
Paper & Forest Products Total 34,648,544
-----------
MATERIALS TOTAL 62,213,537
TELECOMMUNICATION SERVICES - 4.9%
- ------------------------------------------ -----------------------------------------------------------------------------
Diversified Telecommunication BellSouth Corp. 1,132,000 33,088,360
Services - 4.9% CenturyTel, Inc. 129,900 3,429,360
SBC Communications, Inc. 1,216,400 31,018,200
Verizon Communications, Inc. 845,900 31,179,874
Diversified Telecommunication Services Total 98,715,794
-----------
TELECOMMUNICATION SERVICES TOTAL 98,715,794
See notes to investment portfolio.
9
- --------------------------------------------------------------------------------
January 31, 2004 (unaudited) Columbia Growth & Income Fund
Common Stocks - (continued)
UTILITIES - 5.1% Shares Value ($)
- ------------------------------------------ -----------------------------------------------------------------------------
Electric Utilities - 5.1% American Electric Power Co., Inc. 617,240 20,152,886
Consolidated Edison, Inc. 700,000 30,681,000
Entergy Corp. 267,083 15,619,014
Southern Co. 502,379 14,970,894
TXU Corp. 902,500 21,660,000
Electric Utilities Total 103,083,794
-----------
UTILITIES TOTAL 103,083,794
-----------
TOTAL COMMON STOCKS (COST OF $1,630,569,793) 1,948,462,652
Investment Companies - 2.9%
- ------------------------------------------ -----------------------------------------------------------------------------
iShares Russell 1000 Value Index Fund
(cost of $52,178,054) 975,000 57,885,750
Short-Term Obligation - 0.5% Par($)
- ------------------------------------------ -----------------------------------------------------------------------------
Repurchase agreement with State Street
Bank & Trust Co., dated 01/30/04, due 02/02/04
at 0.930%, collateralized by a U.S. Treasury
Bond maturing 04/15/04, market value of
$10,217,213 (repurchase proceeds $10,015,776)
(cost of $10,015,000) 10,015,000 10,015,000
Total Investments - 100.1%
(cost of $1,692,762,847) (b) 2,016,363,402
Other Assets & Liabilities, Net - (0.1%) (918,673)
Net Assets - 100.0% 2,015,444,729
Notes to Investment Portfolio:
(a) Non-income producing.
(b) Cost for both financial statement and federal income tax purposes is
the same.
Acronym Name
------- ----
ADR American Depositary Receipt
REIT Real Estate Investment Trust
See notes to financial statements.
10
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
January 31, 2004 (unaudited) Columbia Growth & Income Fund
($)
- ------------------------------------------ -----------------------------------------------------------------------------
Assets: Investments, at cost 1,692,762,847
Investments, at value 2,016,363,402
Cash 633
Receivable for:
Fund shares sold 3,112,496
Interest 517
Dividends 3,969,253
Expense reimbursement due from Investment Advisor 1,263
Deferred Trustees' compensation plan 39,758
-------------
Total Assets 2,023,487,322
-----------------------------------------------------------------------------
Liabilities: Payable for:
Fund shares repurchased 3,708,479
Investment advisory fee 1,210,572
Transfer agent fee 2,059,014
Pricing and bookkeeping fees 117,951
Custody fee 5,372
Distribution and service fees 877,578
Deferred Trustees' fees 39,758
Other liabilities 23,869
-------------
Total Liabilities 8,042,593
Net Assets 2,015,444,729
-----------------------------------------------------------------------------
Composition of Net Assets: Paid-in capital 2,055,279,632
Undistributed net investment income 709,698
Accumulated net realized loss (364,145,156)
Net unrealized appreciation on investments 323,600,555
-------------
Net Assets 2,015,444,729
-----------------------------------------------------------------------------
Class A: Net assets 671,531,573
Shares outstanding 40,825,218
Net asset value per share 16.45(a)
Maximum offering price per share (Net asset value per
share/0.9425) 17.45(b)
-----------------------------------------------------------------------------
Class B: Net assets 783,590,134
Shares outstanding 50,616,601
Net asset value and offering price per share 15.48(a)
-----------------------------------------------------------------------------
Class C: Net assets 116,220,355
Shares outstanding 7,454,673
Net asset value and offering price per share 15.59(a)
-----------------------------------------------------------------------------
Class Z: Net assets 444,102,667
Shares outstanding 26,994,855
Net asset value, offering and redemption price per share 16.45
(a) Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
(b) On sales of $50,000 or more the offering price is reduced.
See notes to financial statements.
11
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the Six Months Ended January 31, 2004 (unaudited)
Columbia Growth & Income Fund
($)
- ------------------------------------------ -----------------------------------------------------------------------------
Investment Income: Dividends 20,916,835
Interest 365,589
-----------
Total Investment Income (net of foreign taxes
withheld of $80,953) 21,282,424
-----------------------------------------------------------------------------
Expenses: Investment advisory fee 7,042,339
Distribution fee:
Class B 2,849,064
Class C 428,545
Service fee:
Class A 811,846
Class B 949,688
Class C 142,848
Transfer agent fee 3,070,863
Pricing and bookkeeping fees 280,473
Trustees' fees 26,107
Custody fee 23,263
Other expenses 155,037
-----------
Total Expenses 15,780,073
Fees and expenses waived or reimbursed by
Investment Advisor (224,681)
Custody earnings credit (31)
-----------
Net Expenses 15,555,361
-----------
Net Investment Income 5,727,063
-----------------------------------------------------------------------------
Net Realized and Unrealized Net realized loss on investments (10,122,592)
Gain (Loss) on Investments: Net change in unrealized appreciation/depreciation
on investments 238,550,252
-----------
Net Gain 228,427,660
-----------
Net Increase in Net Assets from Operations 234,154,723
See notes to financial statements.
12
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
Columbia Growth & Income Fund
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED YEAR ENDED
JANUARY 31, JULY 31, JUNE 30,
INCREASE (DECREASE) IN NET ASSETS: 2004($) 2003(a)($) 2003($)
- ------------------------------------------ -----------------------------------------------------------------------------
Operations: Net investment income 5,727,063 2,635,729 8,993,969
Net realized gain (loss)
on investments (10,122,592) 8,380,929 (361,181,251)
Net change in unrealized appreciation/
depreciation on investments 238,550,252 (18,186,270) 275,599,753
----------------------------------------
Net Increase (Decrease)
from Operations 234,154,723 (7,169,612) (76,587,529)
-----------------------------------------------------------------------------
Distributions Declared to Shareholders: From net investment income:
Class A (5,897,514) -- (3,173,507)
Class B (1,496,748) -- --
Class C (222,462) -- --
Class Z (formerly Class S) (b) (4,825,958) -- --
Class Z (through 07/29/02) (b) -- -- (1,132,336)
From net realized gains:
Class A -- -- (13,113,326)
Class B -- -- (14,310,343)
Class C -- -- (2,195,247)
Class Z (through 07/29/02) (b) -- -- (3,001,953)
----------------------------------------
Total Distributions Declared
to Shareholders (12,442,682) -- (36,926,712)
-----------------------------------------------------------------------------
Share Transactions: Class A:
Subscriptions 62,279,733 10,998,695 275,649,995
Distributions reinvested 5,352,924 -- 12,464,817
Redemptions (98,138,379) (15,465,282) (355,987,815)
----------------------------------------
Net Decrease (30,505,722) (4,466,587) (67,873,003)
Class B:
Subscriptions 36,248,027 7,719,841 130,400,340
Distributions reinvested 1,357,036 -- 13,082,827
Redemptions (87,357,851) (12,183,503) (222,419,817)
----------------------------------------
Net Decrease (49,752,788) (4,463,662) (78,936,650)
Class C:
Subscriptions 8,231,002 1,520,993 35,645,799
Distributions reinvested 202,402 -- 1,967,464
Redemptions (18,975,607) (2,834,558) (42,869,122)
----------------------------------------
Net Decrease (10,542,203) (1,313,565) (5,255,859)
Class Z (formerly Class S) (b):
Subscriptions 62,148,666 8,461,262 217,927,301
Proceeds received in combination
with original Class Z -- -- 4,557,863
Distributions reinvested 4,266,571 -- 3,886,208
Redemptions (53,664,509) (5,748,955) (62,646,371)
----------------------------------------
Net Increase 12,750,728 2,712,307 163,725,001
(a) The Fund has changed its fiscal year end from June 30 to July 31.
(b) On July 29, 2002, the Fund's existing Class Z shares were combined into the
Fund's Class S shares, which were subsequently redesignated as Class Z
shares.
See notes to financial statements.
13
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
Columbia Growth & Income Fund
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED YEAR ENDED
JANUARY 31, JULY 31, JUNE 30,
2004($) 2003(a)($) 2003($)
- ------------------------------------------ -------------------------------------------------------------------------------
Class Z (through 07/29/02) (b):
Subscriptions -- -- 387,731
Proceeds combined into former Class S -- -- (4,557,863)
Redemptions -- -- (170,835)
-------------------------------------------
Net Decrease -- -- (4,340,967)
Net Increase (Decrease)
from Share Transactions (78,049,985) (7,531,507) 7,318,522
Total Increase (Decrease)
in Net Assets 143,662,056 (14,701,119) (106,195,719)
-------------------------------------------------------------------------------
Net Assets: Beginning of period 1,871,782,673 1,886,483,792 1,992,679,511
End of period (including
undistributed
net investment income of $709,698,
$7,425,317 and $4,789,588,
respectively) 2,015,444,729 1,871,782,673 1,886,483,792
-------------------------------------------------------------------------------
Changes in Shares: Class A:
Subscriptions 4,058,461 740,289 19,938,430
Issued for distributions reinvested 342,760 -- 902,615
Redemptions (6,358,599) (1,045,471) (26,325,791)
-------------------------------------------
Net Decrease (1,957,378) (305,182) (5,484,746)
Class B:
Subscriptions 2,523,896 554,962 10,058,691
Issued for distributions reinvested 92,195 -- 1,005,610
Redemptions (6,053,173) (874,829) (17,345,105)
-------------------------------------------
Net Decrease (3,437,082) (319,867) (6,280,804)
Class C:
Subscriptions 569,404 108,591 2,739,448
Issued for distributions reinvested 13,657 -- 150,057
Redemptions (1,307,619) (202,000) (3,334,540)
-------------------------------------------
Net Decrease (724,558) (93,409) (445,035)
Class Z (formerly Class S) (b):
Subscriptions 4,046,454 571,033 17,134,572
Issued for combination with
original Class Z -- -- 336,309
Issued for distributions reinvested 273,149 -- 281,607
Redemptions (3,464,786) (387,341) (4,606,424)
-------------------------------------------
Net Increase 854,817 183,692 13,146,064
Class Z (through 07/29/02) (b):
Subscriptions -- -- 26,431
Shares combined into former Class S -- -- (336,309)
Redemptions -- -- (11,978)
-------------------------------------------
Net Decrease -- -- (321,856)
(a) The Fund has changed its fiscal year end from June 30 to July 31.
(b) On July 29, 2002, the Fund's existing Class Z shares were combined into the
Fund's Class S shares, which were subsequently redesignated as Class Z
shares.
See notes to financial statements.
14
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
January 31, 2004 (unaudited) Columbia Growth & Income Fund
Note 1. Organization
Columbia Growth & Income Fund (the "Fund"), a series of Columbia Funds Trust VI
(the "Trust"), is a diversified portfolio. The Trust is a Massachusetts business
trust registered under the Investment Company Act of 1940, as amended, as an
open-end management investment company.
Investment Goal
The Fund seeks long-term growth and income.
Fund Shares
The Fund may issue an unlimited number of shares, and offers four classes of
shares: Class A, Class B, Class C and Class Z. Each share class has its own
sales charge and expense structure.
Class A shares are subject to a maximum front-end sales charge of 5.75% based on
the amount of initial investment. Class A shares purchased without an initial
sales charge are subject to a 1.00% contingent deferred sales charge ("CDSC") on
shares sold within eighteen months on an original purchase of $1 million to $25
million. Class B shares are subject to a maximum CDSC of 5.00% based upon the
holding period after purchase. Class B shares will convert to Class A shares in
a certain number of years after purchase, depending on the program under which
shares were purchased. Class C shares are subject to a 1.00% CDSC on shares sold
within one year 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 the Fund's prospectus.
Effective October 13, 2003, the Fund changed its name from Liberty Growth &
Income Fund to Columbia Growth & Income Fund. Also on that date, the Trust
changed its name from Liberty Funds Trust VI to Columbia Funds Trust VI.
Note 2. Significant Accounting Policies
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America ("GAAP") requires management
to make estimates and assumptions that affect the reported amounts of assets and
liabilities, the disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenue and expenses during
the reporting period. Actual results could differ from those estimates. The
following is a summary of significant accounting policies consistently followed
by the Fund in the preparation of its financial statements.
Security Valuation
Equity securities are valued at the last sale price at the close of the
principal exchange on which they trade. Unlisted securities or listed securities
for which there were no sales during the day are valued at the closing bid price
on such exchanges or over-the-counter markets.
Short-term obligations maturing within 60 days are valued at amortized cost,
which approximates market value.
Investments in other investment companies are valued at net asset value.
Investments for which market quotations are not readily available are valued at
fair value as determined in good faith under consistently applied procedures
established by and under the general supervision of the Board of Trustees.
Security Transactions
Security transactions are accounted for on the trade date. Cost is determined
and gains (losses) are based upon the specific identification method for both
financial statement and federal income tax purposes.
15
- --------------------------------------------------------------------------------
January 31, 2004 (unaudited) Columbia Growth & Income Fund
Repurchase Agreements
The Fund may engage in repurchase agreement transactions with institutions that
the Fund's investment advisor has determined are creditworthy. The Fund, through
its custodian, receives delivery of underlying securities collateralizing a
repurchase agreement. Collateral is at least equal, at all times, to the value
of the repurchase obligation including interest. A repurchase agreement
transaction involves certain risks in the event of default or insolvency of the
counterparty. These risks include possible delays or restrictions upon the
Fund's ability to dispose of the underlying securities and a possible decline in
the value of the underlying securities during the period while the Fund seeks to
assert its rights.
Income Recognition
Interest income is recorded on the accrual basis. Corporate actions and dividend
income are recorded on the ex-date. Awards from class action litigation are
recorded as a reduction of cost if the Fund still owns the applicable securities
on the payment date. If the Fund no longer owns the applicable securities, the
proceeds are recorded as realized gains.
Determination of Class Net Asset Values
All income, expenses (other than class-specific expenses, as shown on the
Statement of Operations), and realized and unrealized gains (losses), are
allocated to each class of the Fund on a daily basis, based on the relative net
assets of each class, for purposes of determining the net asset value of each
class.
Federal Income Tax Status
The Fund intends to qualify each year as a "regulated investment company" under
Subchapter M of the Internal Revenue Code, as amended, and will distribute
substantially all of its taxable income, if any, for its tax year, and as such
will not be subject to federal income taxes. In addition, by distributing in
each calendar year substantially all of its net investment income, capital gains
and certain other amounts, if any, the Fund will not be subject to federal
excise tax. Therefore, no federal income or excise tax provision is recorded.
Distributions to Shareholders
Distributions to shareholders are recorded on ex-date. Net realized capital
gains, if any, are distributed at least annually. Income and capital gains
dividends are determined in accordance with income tax regulations, which may
differ from GAAP.
Note 3. Federal Tax Information
The tax character of distributions paid during the period ended July 31, 2003
and the fiscal year ended June 30, 2003 was as follows:
July 31, 2003 June 30, 2003
- -------------------------------------------------------------
Distributions paid from:
Ordinary Income* $-- $ 5,091,397
- -------------------------------------------------------------
Long-Term Capital Gains -- 31,835,315
* For tax purposes short-term capital gains distributions, if any, are
considered ordinary income distributions.
Unrealized appreciation and depreciation at January 31, 2004, based on cost of
investments for federal income tax purposes was:
Unrealized appreciation $ 337,656,125
Unrealized depreciation (14,055,570)
- -------------------------------------------------------------
Net unrealized appreciation $ 323,600,555
The following capital loss carryforwards, determined as of July 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 Capital Loss
Expiration Carryforward
- -------------------------------------------------------------
2010 $241,549,397
- -------------------------------------------------------------
2011 112,261,432
- -------------------------------------------------------------
$353,810,829
- -------------------------------------------------------------
16
January 31, 2004 (unaudited)
- --------------------------------------------------------------------------------
Columbia Growth & Income Fund
Under current tax rules, certain currency and capital losses realized after
October 31 may be deferred and treated as occurring on the first day of the
following fiscal year. As determined on June 30, 2003, post-October capital
losses of $120,643,830 attributed to security transactions were deferred to July
1, 2003.
Note 4. Fees and Compensation Paid to Affiliates
Investment Advisory Fee
Columbia Management Advisors, Inc. ("Columbia"), an indirect, wholly owned
subsidiary of FleetBoston Financial Corporation ("FleetBoston"), is the
investment advisor to the Fund and provides administrative and other services.
Columbia receives a monthly investment advisory fee based on the Fund's average
daily net assets at the following annual rates:
Average Daily Net Assets Fee Rate
- --------------------------------------------------------
First $1 billion 0.80%
- --------------------------------------------------------
Over $1 billion 0.60%
Prior to November 1, 2003, Columbia was entitled to receive a monthly investment
advisory fee based on the Fund's average daily net assets at the following
annual rates:
Average Daily Net Assets Fee Rate
- --------------------------------------------------------
First $1 billion 0.80%
- --------------------------------------------------------
Over $1 billion 0.70%
In addition, for the period August 1, 2003 through October 31, 2003, Columbia
voluntarily waived a portion of its investment advisory fee so that it did not
exceed 0.60% annually on the Fund's average daily net assets over $1 billion.
For the six months ended January 31, 2004, the Fund's annualized effective
investment advisory fee rate was 0.70%.
FleetBoston has entered into an agreement with Bank of America Corporation
("BOA") to merge the two financial services companies. On March 17, 2004, the
shareholders of FleetBoston and BOA voted to approve the merger. The transaction
is expected to be completed in the second quarter of 2004.
Pricing and Bookkeeping Fees
Columbia is responsible for providing pricing and bookkeeping services to the
Fund under a pricing and bookkeeping agreement. Under a separate agreement (the
"Outsourcing Agreement"), Columbia has delegated those functions to State Street
Corporation ("State Street"). Columbia pays the total fees collected to State
Street under the Outsourcing Agreement.
Under its pricing and bookkeeping agreement with the Fund, Columbia receives
from the Fund an annual flat fee of $10,000 paid monthly, and in any month that
the Fund's average daily net assets exceed $50 million, an additional monthly
fee. The additional fee rate is calculated by taking into account the fees
payable to State Street under the Outsourcing Agreement. This rate is applied to
the average daily net assets of the Fund for that month. The Fund also pays
additional fees for pricing services. For the six months ended January 31, 2004,
the Fund's annualized effective pricing and bookkeeping fee rate was 0.029%.
Transfer Agent Fee
Columbia Funds Services, Inc. (the "Transfer Agent"), formerly Liberty Funds
Services, Inc., an affiliate of Columbia, provides shareholder services to the
Fund. For such services, the Transfer Agent receives a fee, paid monthly, at the
annual rate of $28.00 per open account. The Transfer Agent also receives
reimbursement for certain out-of-pocket expenses.
Prior to November 1, 2003, the Transfer Agent was entitled to receive a monthly
transfer agent fee at the annual rate of 0.06% of the Fund's average daily net
assets plus flat-rate charges based on the number of shareholder accounts and
transactions. The Transfer Agent was also entitled to receive reimbursement for
certain out-of-pocket expenses. For the six months ended January 31, 2004, the
Fund's annualized effective transfer agent fee rate, exclusive of out-of-pocket
fees, was 0.21%.
17
January 31, 2004 (unaudited)
- --------------------------------------------------------------------------------
Columbia Growth & Income Fund
Underwriting Discounts, Service and Distribution Fees
Columbia Funds Distributor, Inc. (the "Distributor"), an affiliate of Columbia,
is the principal underwriter of the Fund. Prior to October 13, 2003, Columbia
Funds Distributor, Inc. was known as Liberty Funds Distributor, Inc. For the six
months ended January 31, 2004, the Distributor has retained net underwriting
discounts of $70,176 on sales of the Fund's Class A shares and received CDSC
fees of $7,513, $835,630 and $8,741 on Class A, Class B and Class C share
redemptions, respectively.
The Fund has adopted a 12b-1 plan (the "Plan") which requires the payment of a
monthly service fee to the Distributor at the annual rate of 0.25% of the
average daily net assets of the Fund attributable to Class A, Class B and Class
C shares. The Plan also requires the payment of a monthly distribution fee to
the Distributor at the annual rate of 0.75% of the average daily net assets
attributable to Class B and Class C shares only.
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.
Custody Credits
The Fund has an agreement with its custodian bank under which custody fees may
be reduced by balance credits. The Fund could have invested a portion of the
assets utilized in connection with the expense offset arrangement in an
income-producing asset if it had not entered into such an agreement.
Fees Paid to Officers and Trustees
The Fund pays no compensation to its officers, all of whom are employees of
Columbia or its affiliates. The Fund's trustees may participate in a deferred
compensation plan which may be terminated at any time. Obligations of the plan
will be paid solely out of the Fund's assets.
Portfolio Information
For the six months ended January 31, 2004, the cost of purchases and proceeds
from sales of securities, excluding short-term obligations, were $644,878,854
and $622,742,818, respectively.
Note 5. Line of Credit
The Fund and other affiliated funds participate in a $350,000,000 credit
facility, which is used for temporary or emergency purposes to facilitate
portfolio liquidity. Interest is charged to the Fund based on its borrowings. In
addition, the Fund has agreed to pay commitment fees on its pro-rata portion of
the unutilized line of credit. The commitment fee is included in "Other
expenses" on the Statement of Operations. For the six months ended January 31,
2004, the Fund did not borrow under these arrangements.
Note 6. Disclosure of Significant Risks and Contingencies
Industry Focus
The Fund may focus its investments in certain industries, subjecting it to
greater risk than a fund that is more diversified.
Legal Proceedings
Columbia, the Distributor and certain of their affiliates (collectively, "the
Columbia Group") have received information requests and subpoenas from various
regulatory and law enforcement authorities in connection with their
investigations of late trading and market timing in mutual funds. The Columbia
Group has not uncovered any instances where Columbia or the Distributor were
knowingly involved in late trading of mutual fund shares.
18
January 31, 2004 (unaudited)
- --------------------------------------------------------------------------------
Columbia Growth & Income Fund
On February 24, 2004, the Securities and Exchange Commission ("SEC") filed a
civil complaint in the United States District Court for the District of
Massachusetts against Columbia and the Distributor, alleging that they had
violated certain provisions of the federal securities laws in connection with
trading activity in mutual fund shares. Also on February 24, 2004, the New York
Attorney General ("NYAG") filed a civil complaint in New York Supreme Court,
County of New York against Columbia and the Distributor alleging that Columbia
and the Distributor had violated certain New York anti-fraud statutes. On March
15, 2004, Columbia and the Distributor entered into agreements in principle with
the SEC Division of Enforcement and NYAG in settlement of the charges. Under the
agreements, Columbia and the Distributor agreed, inter alia, to the following
conditions: payment of $70 million in disgorgement; payment of $70 million in
civil penalties; an order requiring Columbia and the Distributor to cease and
desist from violations of the antifraud provisions and other provisions of the
federal securities laws; governance changes designed to maintain the
independence of the mutual fund boards of trustees and ensure compliance with
securities laws and their fiduciary duties; and retention of an independent
consultant to review Columbia's and the Distributor's compliance policies and
procedures. The agreement requires the final approval of the SEC. In a separate
agreement with the NYAG, the Columbia Group has agreed to reduce mutual fund
fees by $80 million over a five-year period.
As a result of these matters or any adverse publicity or other developments
resulting from them, there may be increased redemptions or reduced sales of fund
shares, which could increase transaction costs or operating expenses, or have
other adverse consequences for the funds.
Note 7. Comparability of Financial Statements
On February 11, 2003, the Board of Trustees approved a change in the fiscal year
end of the Fund from June 30 to July 31.
Note 8. Subsequent Event
At a meeting held on February 10, 2004, the Board of Trustees approved the
commencement of Class I shares of the Fund. The Class I shares are expected to
commence operations in April 2004.
19
Financial Highlights
- --------------------------------------------------------------------------------
Columbia Growth & Income Fund
Selected data for a share outstanding throughout each period is as follows:
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED YEAR ENDED JUNE 30,
JANUARY 31, JULY 31, ------------------------------------------------------------------------
CLASS A SHARES 2004 2003 (a) 2003 2002 2001 2000 1999
====================================================================================================================================
Net Asset Value,
Beginning of Period $ 14.69 $ 14.75 $ 15.67 $ 18.98 $ 20.60 $ 21.84 $ 20.02
- ------------------------------------------------------------------------------------------------------------------------------------
Income from
Investment Operations:
Net investment income (b) 0.07 0.02 0.11 0.11 0.12 0.01 0.04
Net realized and unrealized
gain (loss) on investments 1.83 (0.08) (0.72) (1.89) 2.59 0.25 2.65
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total from Investment
Operations 1.90 (0.06) (0.61) (1.78) 2.71 0.26 2.69
- ------------------------------------------------------------------------------------------------------------------------------------
Less Distributions
Declared to Shareholders:
From net investment income (0.14) -- (0.06) (0.10) -- -- --
From net realized gains -- -- (0.25) (1.43) (4.33) (1.50) (0.87)
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Distributions
Declared to Shareholders (0.14) -- (0.31) (1.53) (4.33) (1.50) (0.87)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 16.45 $ 14.69 $ 14.75 $ 15.67 $ 18.98 $ 20.60 $ 21.84
Total return (c) 13.00%(d)(e) (0.41)%(d)(e) (3.75)%(e) (10.24)%(e) 13.34%(e) 1.43%(e) 13.97%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets/
Supplemental Data:
Expenses (f) 1.32%(g) 1.36%(g) 1.40% 1.31% 1.32% 1.35% 1.41%
Net investment income (f) 0.88%(g) 1.93%(g) 0.83% 0.60% 0.62% 0.06% 0.19%
Waiver/reimbursement 0.02%(g) 0.05%(g) 0.04% 0.05% 0.03% 0.10% --
Portfolio turnover rate 34%(d) 6%(d) 63% 47% 104% 81% 79%
Net assets, end of
period (000's) $671,532 $628,680 $635,415 $761,122 $503,647 $309,129 $351,972
- ------------------------------------------------------------------------------------------------------------------------------------
(a) The Fund has changed its fiscal year end from June 30 to July 31.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(d) Not annualized.
(e) Had the Investment Advisor not waived or reimbursed a portion of expenses,
total return would have been reduced.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
20
- --------------------------------------------------------------------------------
Columbia Growth & Income Fund
Selected data for a share outstanding throughout each period is as follows:
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED YEAR ENDED JUNE 30,
JANUARY 31, JULY 31, ------------------------------------------------------------------------
CLASS B SHARES 2004 2003 (a) 2003 2002 2001 2000 1999
====================================================================================================================================
Net Asset Value,
Beginning of Period $13.78 $13.84 $14.77 $18.01 $19.88 $21.29 $19.68
- ------------------------------------------------------------------------------------------------------------------------------------
Income from
Investment Operations:
Net investment income (loss) (b) 0.01 0.01 0.01 (0.03) (0.03) (0.14) (0.11)
Net realized and unrealized
gain (loss) on investments 1.72 (0.07) (0.69) (1.77) 2.49 0.23 2.59
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total from Investment
Operations 1.73 (0.06) (0.68) (1.80) 2.46 0.09 2.48
- ------------------------------------------------------------------------------------------------------------------------------------
Less Distributions
Declared to Shareholders:
From net investment income (0.03) -- -- (0.01) -- -- --
From net realized gains -- -- (0.25) (1.43) (4.33) (1.50) (0.87)
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Distributions
Declared to Shareholders (0.03) -- (0.25) (1.44) (4.33) (1.50) (0.87)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $15.48 $13.78 $13.84 $14.77 $18.01 $19.88 $21.29
Total return (c) 12.56%(d)(e) (0.43)%(d)(e) (4.50)%(e) (10.89)%(e) 12.46%(e) 0.64%(e) 13.12%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets/
Supplemental Data:
Expenses (f) 2.07%(g) 2.11%(g) 2.15% 2.06% 2.07% 2.10% 2.16%
Net investment income (loss) (f) 0.13%(g) 1.18%(g) 0.07% (0.15)% (0.13)% (0.69)% (0.56)%
Waiver/reimbursement 0.02%(g) 0.05%(g) 0.04% 0.05% 0.03% 0.10% --
Portfolio turnover rate 34%(d) 6%(d) 63% 47% 104% 81% 79%
Net assets, end of
period (000's) $783,590 $745,122 $752,605 $895,904 $883,754 $822,017 $919,542
- ------------------------------------------------------------------------------------------------------------------------------------
(a) The Fund has changed its fiscal year end from June 30 to July 31.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(d) Not annualized.
(e) Had the Investment Advisor not waived or reimbursed a portion of expenses,
total return would have been reduced.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
21
- --------------------------------------------------------------------------------
Columbia Growth & Income Fund
Selected data for a share outstanding throughout each period is as follows:
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED YEAR ENDED JUNE 30,
JANUARY 31, JULY 31, ------------------------------------------------------------------------
CLASS C SHARES 2004 2003 (a) 2003 2002 2001 2000 1999
====================================================================================================================================
Net Asset Value,
Beginning of Period $ 13.88 $ 13.94 $ 14.87 $ 18.12 $ 19.99 $ 21.39 $ 19.78
- ------------------------------------------------------------------------------------------------------------------------------------
Income from
Investment Operations:
Net investment income (loss) (b) 0.01 0.01 0.01 (0.03) (0.02) (0.14) (0.11)
Net realized and unrealized
gain (loss) on investments 1.73 (0.07) (0.69) (1.78) 2.48 0.24 2.59
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total from Investment
Operations 1.74 (0.06) (0.68) (1.81) 2.46 0.10 2.48
- ------------------------------------------------------------------------------------------------------------------------------------
Less Distributions
Declared to Shareholders:
From net investment income (0.03) -- -- (0.01) -- -- --
From net realized gains -- -- (0.25) (1.43) (4.33) (1.50) (0.87)
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Distributions
Declared to Shareholders (0.03) -- (0.25) (1.44) (4.33) (1.50) (0.87)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 15.59 $ 13.88 $ 13.94 $ 14.87 $ 18.12 $ 19.99 $ 21.39
Total return (c) 12.54%(d)(e) (0.43)%(d)(e) (4.47)%(e) (10.88)%(e) 12.38%(e) 0.68%(e) 13.05%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets/
Supplemental Data:
Expenses (f) 2.07%(g) 2.11%(g) 2.15% 2.06% 2.06% 2.10% 2.16%
Net investment income (loss) (f) 0.12%(g) 1.19%(g) 0.08% (0.15)% (0.13)% (0.69)% (0.56)%
Waiver/reimbursement 0.02%(g) 0.05%(g) 0.04% 0.05% 0.03% 0.10% --
Portfolio turnover rate 34%(d) 6%(d) 63% 47% 104% 81% 79%
Net assets, end of
period (000's) $116,220 $113,542 $115,314 $129,661 $77,565 $29,303 $35,317
- ------------------------------------------------------------------------------------------------------------------------------------
(a) The Fund has changed its fiscal year end from June 30 to July 31.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(d) Not annualized.
(e) Had the Investment Advisor not waived or reimbursed a portion of expenses,
total return would have been reduced.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
22
Columbia Growth & Income Fund
- --------------------------------------------------------------------------------
Selected data for a share outstanding throughout each period is as follows:
(UNAUDITED)
SIX MONTHS PERIOD PERIOD
ENDED ENDED YEAR ENDED JUNE 30, ENDED
JANUARY 31, JULY 31, -------------------------- JUNE 30,
CLASS Z SHARES 2004 2003 (a) 2003 (b) 2002 2001 (c)
====================================================================================================================================
Net Asset Value, Beginning of Period $ 14.71 $ 14.76 $ 15.68 $ 19.00 $ 19.64
- ------------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income (d) 0.09 0.03 0.16 0.16 0.06
Net realized and unrealized gain (loss) on investments 1.83 (0.08) (0.74) (1.88) (0.70)
------------ ------------ ------------ ------------ ------------
Total from Investment Operations 1.92 (0.05) (0.58) (1.72) (0.64)
- ------------------------------------------------------------------------------------------------------------------------------------
Less Distributions
Declared to Shareholders:
From net investment income (0.18) -- (0.09) (0.17) --
From net realized gains -- -- (0.25) (1.43) --
------------ ------------ ------------ ------------ ------------
Total Distributions Declared to Shareholders (0.18) -- (0.34) (1.60) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 16.45 $ 14.71 $ 14.76 $ 15.68 $ 19.00
Total return (e) 13.12%(f)(g) (0.34)%(f)(g) (3.52)%(g) (9.94)%(g) (3.26)%(f)(g)
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets/Supplemental Data:
Expenses (h) 1.07%(i) 1.11%(i) 1.15% 1.06% 1.08%(i)
Net investment income (h) 1.13%(i) 2.18%(i) 1.13% 0.85% 0.86%(i)
Waiver/reimbursement 0.02%(i) 0.05%(i) 0.04% 0.05% 0.03%(i)
Portfolio turnover rate 34%(f) 6%(f) 63% 47% 104%
Net assets, end of period (000's) $444,103 $384,438 $383,150 $200,908 $264,425
- ------------------------------------------------------------------------------------------------------------------------------------
(a) The Fund has changed its fiscal year end from June 30 to July 31.
(b) On July 29, 2002, the Fund's existing Class Z shares were combined into the
Fund's Class S shares, which were subsequently redesignated as Class Z
shares.
(c) Class Z shares were initially offered on February 7, 2001. Per share data
and total return 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) Not annualized.
(g) Had the Investment Advisor not waived or reimbursed a portion of expenses,
total return would have been reduced.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
23
IMPORTANT INFORMATION ABOUT THIS REPORT
- --------------------------------------------------------------------------------
Columbia Growth & Income Fund
Transfer Agent
Columbia Funds Services, Inc.
P.O. Box 8081
Boston MA 02266-8081
800.345.6611
Distributor
Columbia Funds Distributor, Inc.
One Financial Center
Boston MA 02111
Investment Advisor
Columbia Management Advisors, Inc.
100 Federal Street
Boston MA 02111
The fund mails one shareholder report to each shareholder address. If you would
like more than one report, please call shareholder services at 800-345-6611 and
additional reports will be sent to you.
This report has been prepared for shareholders of Columbia Growth & Income Fund.
This report may also be used as sales literature when preceded or accompanied by
the current prospectus which provides details of sales charges, investment
objectives and operating policies of the fund and with the most recent copy of
the Columbia Funds Performance Update.
A description of the policies and procedures that the fund uses to determine how
to vote proxies relating to its portfolio securities is available (i) without
charge, upon request, by calling 800-345-6611 and (ii) on the Securities and
Exchange Commissionwebsite at http://www.sec.gov.
24
This page intentionally left blank.
eDelivery
Help your fund reduce printing and postage costs! Elect to get your shareholder
reports by electronic delivery. With Columbia's eDelivery program, you receive
an e-mail message when your shareholder report becomes available online. If your
fund account is registered with Columbia Funds, you can sign up quickly and
easily on our website at www.columbiafunds.com.
Please note -- if you own your fund shares through a financial institution,
contact the institution to see if it offers electronic delivery. If you own your
fund shares through a retirement plan, electronic delivery may not be available
to you.
Columbia Growth & Income Fund Semiannual Report, January 31, 2004
ColumbiaFunds
A Member of Columbia Management Group
(C)2004 Columbia Funds Distributor, Inc.
One Financial Center, Boston, MA 02111-2621
800.345.6611 www.columbiafunds.com
-------------
PRSRT STD
U.S. Postage
PAID
Holliston, MA
Permit NO. 20
-------------
779-03/091R-0204 (03/04) 04/0503
ITEM 2. CODE OF ETHICS.
Note applicable at this time.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Note applicable at this time.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Note applicable at this time.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS
Note applicable at this time.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not applicable.
ITEM 10. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive officer and principal financial
officer, based on his evaluation of the registrant's disclosure controls
and procedures as of a date within 90 days of the filing of this report,
has 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 11. EXHIBITS.
(a)(1) Code of ethics required to be disclosed under Item 2 of Form N-CSR: Not
applicable at this time.
(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.
(a)(3) Not applicable.
(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of
1940 (17 CFR 270.30a-2(b)) attached hereto as Exhibit 99.906CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(registrant) Columbia Funds Trust VI
------------------------------------------------------------------
By (Signature and Title) /s/ J. Kevin Connaughton
------------------------------------------------------
J. Kevin Connaughton, President and Treasurer
Date April 6, 2004
--------------------------------------------------------------------------
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/ J. Kevin Connaughton
------------------------------------------------------
J. Kevin Connaughton, President and Treasurer
Date April 6, 2004
--------------------------------------------------------------------------