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 811-06341
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Columbia Real Estate Equity Fund, Inc.
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
1301 SW Sixth Avenue, PO Box 1350, Portland, Oregon 97207
- ------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Mark Wentzien, Esq.
Columbia Management Group
1301 SW Sixth Avenue, PO Box 1350
Portland, Oregon 97207
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(Name and address of agent for service)
Registrant's telephone number, including area code: 1-503-222-3600
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Date of fiscal year end: August 31, 2004
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Date of reporting period: February 29, 2004
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
COLUMBIA FUNDS
SEMIANNUAL REPORT
FEBRUARY 29, 2004
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
Photo of Woman Standing
TABLE OF CONTENTS
Economic Update .................................... 1
Columbia Common Stock Fund ......................... 2
Columbia Growth Fund ............................... 5
Columbia International Stock Fund .................. 8
Columbia Mid Cap Growth Fund ....................... 11
Columbia Small Cap Growth Fund ..................... 14
Columbia Real Estate Equity Fund ................... 17
Columbia Technology Fund ........................... 20
Columbia Strategic Investor Fund ................... 23
Columbia Balanced Fund ............................. 26
Columbia Short Term Bond Fund ...................... 29
Columbia Fixed Income Securities Fund .............. 32
Columbia National Municipal Bond Fund .............. 35
Columbia Oregon Municipal Bond Fund ................ 38
Columbia High Yield Fund ........................... 41
Columbia Daily Income Company ...................... 44
Financial Statements ............................... 47
Shareholder Meeting Results ........................ 195
Important Information
About This Report .................................. 196
Columbia Funds ..................................... 197
Economic and market conditions change frequently. There is no assurance that the
trends described in this report will continue or commence.
Not FDIC May Lose Value
Insured No Bank Guarantee
TO OUR FELLOW SHAREHOLDERS______________________________________________________
COLUMBIA FUNDS
DEAR SHAREHOLDER:
We are pleased to let you know that FleetBoston Financial Corporation and Bank
of America Corporation have merged, effective April 1, 2004. As a result of the
merger, Columbia Management Group became part of the Bank of America family
of companies. Looking ahead, we believe this merger will be a real benefit to
our shareholders. Preserving and leveraging our strengths, the combined
organization will deliver additional research, management, and product
capabilities to you.
There are no immediate changes planned for fund names, product lines, or
customer service contacts. As always, we will provide you with updates at
www.columbiafunds.com or through other communications, such as newsletters and
shareholder reports.
As you might know, on March 15, 2004, FleetBoston Financial announced an
agreement in principle with the staff of the Securities and Exchange Commission
("SEC") and the New York Attorney General to settle charges involving market
timing in Columbia Management mutual funds. (Bank of America came to a similar
settlement in principle at the same time.) The agreement will require the final
approval of the SEC. This action reflects our full cooperation with the
investigation and our strong wish to put this regrettable situation behind us.
Columbia Management has taken and will continue to take steps to strengthen
policies, procedures and oversight to curb frequent trading of Columbia fund
shares.
We also want you to know that your fund's Board of Directors has been energetic
over the past year in strengthening its capacity to oversee the Columbia funds.
Recently, the Board of Directors:
o ELECTED AN INDEPENDENT DIRECTOR TO CHAIR THE TWELVE-PERSON BOARD. IN
ADDITION, EACH COMMITTEE OF THE BOARD IS COMPRISED OF DIRECTORS WHO
ARE COMPLETELY INDEPENDENT OF THE ADVISOR AND ITS AFFILIATES.
o APPOINTED A CHIEF COMPLIANCE OFFICER OF THE COLUMBIA FUNDS, WHO
REPORTS DIRECTLY TO EACH FUND'S AUDIT COMMITTEE. DIRECTORS WERE ALSO
ASSIGNED TO FOUR SEPARATE INVESTMENT OVERSIGHT COMMITTEES, EACH BETTER
ABLE TO MONITOR PERFORMANCE OF INDIVIDUAL FUNDS.
o VOTED TO DOUBLE THE REQUIRED INVESTMENT BY EACH DIRECTOR IN THE
COLUMBIA FUNDS -- TO FURTHER ALIGN THE INTERESTS OF THE DIRECTORS WITH
THOSE OF OUR FUND SHAREHOLDERS. AT THE SAME TIME, NEW POLICIES WERE
INSTITUTED REQUIRING ALL INVESTMENT PERSONNEL AND DIRECTORS TO HOLD
THEIR COLUMBIA FUND SHARES FOR A MINIMUM OF ONE YEAR (UNLESS
EXTRAORDINARY CIRCUMSTANCES WARRANT AN EXCEPTION TO BE GRANTED BY A
BOARD DESIGNATED COMMITTEE).
Both your fund's directors and Columbia Management are committed to serving the
interests of our shareholders, and we will continue to work hard 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 15 Columbia funds. The "Economic Update"
provides an overview of the investing environment during the past six months.
The individual fund reports feature commentary from fund managers, followed by
financial statements for each fund.
We hope that you will take time to read the reports of the funds you own and
discuss them with your financial advisor if you have any questions. If you have
any questions about your account, please feel free to call Columbia's
shareholder services department at 800-345-6611.
As always, thank you for choosing Columbia funds. It is a privilege to play a
role in your financial future.
Sincerely,
/s/ Thomas C. Theobald /s/ J. Kevin Connaughton
Thomas C. Theobald J. Kevin Connaughton
Chairman, Board of Directors President, Columbia Funds
J. Kevin Connaughton was named president of Columbia Funds on February 27, 2004.
Sidebar:
SUMMARY
FOR THE SIX-MONTH PERIOD THAT ENDED FEBRUARY 29, 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.
[Illustration of 2 arrows pointing up]
S&P 500 RUSSELL 3000
INDEX INDEX
14.59% 15.06%
O PERFORMANCE IN THE FIXED-INCOME UNIVERSE WAS LED BY HIGH-YIELD BONDS. AS
MEASURED BY THE MERRILL LYNCH US HIGH YIELD, CASH PAY ONLY INDEX, THIS
SECTOR POSTED A RETURN MORE THAN PERCENTAGE POINTS HIGHER THAN THE RETURN
FOR INVESTMENT-GRADE BONDS, AS MEASURED BY THE LEHMAN BROTHERS AGGREGATE
BOND INDEX.
[Illustration of 2 arrows pointing up]
MERRILL LYNCH LEHMAN
INDEX INDEX
10.32% 4.92%
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 Only 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 FUNDS
The US economy grew rapidly in the six-month reporting period that began
September 1, 2003 and ended February 29, 2004. A combination of factors
accounted for the economy's stronger growth in the first half of this reporting
period. A sizeable package of tax cuts, implemented in 2003, gave disposable
income a boost. Federal income taxes fell across all tax brackets. Many
taxpayers received tax rebate checks late last summer, which helped prop up
consumer spending throughout this reporting period. There are warning signs for
2004, however. Early in 2004, consumer confidence slipped. Unemployment claims
rose. Even the housing market, which has been hot for years, showed signs of
weakness.
The business sector contributed to the economy's growth as industrial production
rose over the past six months. Business spending--especially on
technology-related items--showed strength as corporate profits rose. However,
orders for durable goods declined in January, interrupting five consecutive
months of gains. Computer and electronic equipment orders rose, but
transportation equipment orders fell sharply.
US STOCKS HEADED HIGHER
The US stock market gained ground, but its rate of return slowed in the final
month of the period as disappointing economic data gave investors pause. The S&P
500 Index returned 14.59% for this six-month period as all sectors of the market
benefited from rising corporate profits. Defensive sectors, such as energy,
materials and consumer staples were the strongest performers, as investors
started to hedge their bets on the economy. Technology, which led the stock
market rally in its early stage last year, pulled back during the period.
INTERNATIONAL STOCK MARKETS REPORTED STRONG RETURNS
A rebound in economic growth and a declining US dollar helped international
stock markets post returns that were generally stronger than in the United
States. The MSCI EAFE Index, a broad measure of performance of 21 developed
equity markets in Europe, Australasia (which includes Australia and New Zealand)
and the Far East, returned 25.22%. European stock markets responded to improving
economic data and relatively low interest rates. Japan's economy continued to
report steady but modest growth. Yet its stock market cooled after a run-up in
the six months prior to this reporting period. Although the Chinese economy
cooled somewhat in 2003, its stock market soared. The MSCI China Index returned
43.07%.
BONDS DELIVER RESPECTABLE GAINS
A growing economy continued to boost investor enthusiasm for high-yield bonds.
The Merrill Lynch US High Yield, Cash Pay Only Index returned 10.32%. And as
interest rates moved lower, other segments of the bond market delivered
respectable gains. The yield on the benchmark 10-year US Treasury bond edged
downward from 4.46% to 3.97% during the period. The Lehman Brothers Aggregate
Bond Index, a broad measure of investment-grade bond performance, returned
4.92%. However, money market fund yields remained below 1%, as the Fed kept
short-term interest rates at their historical lows.
1
Sidebar:
PERFORMANCE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04 ($)
SALES CHARGE WITHOUT WITH
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Class A 24,071 22,680
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Class B 23,804 23,804
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Class C 23,804 23,804
-----------------------------------
Class D 23,792 23,549
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Class Z 24,187 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 the original cost. Please visit www.columbiafunds.com for
daily and most recent month-end performance updates.
PERFORMANCE INFORMATION_________________________________________________________
COLUMBIA COMMON STOCK FUND
VALUE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04
(MOUNTAIN CHART)
CLASS A CLASS A
SHARES SHARES
WITHOUT WITH SALES S&P 500
SALES CHARGE CHARGE INDEX
------------ ---------- ---------
03/1994 9425.00 10000.00 10000.00
9066.00 9619.00 9564.00
9200.00 9761.00 9686.00
9377.00 9949.00 9845.00
9065.00 9618.00 9604.00
9427.00 10002.00 9919.00
9721.00 10314.00 10326.00
9482.00 10061.00 10073.00
9531.00 10113.00 10299.00
9297.00 9864.00 9925.00
9494.00 10073.00 10071.00
9576.00 10160.00 10332.00
9970.00 10578.00 10735.00
10177.00 10797.00 11052.00
10290.00 10917.00 11377.00
10623.00 11271.00 11832.00
10780.00 11438.00 12106.00
11191.00 11874.00 12508.00
11292.00 11980.00 12540.00
11682.00 12395.00 13069.00
11518.00 12220.00 13022.00
12037.00 12771.00 13593.00
12421.00 13179.00 13856.00
12654.00 13427.00 14327.00
12848.00 13632.00 14460.00
13115.00 13915.00 14599.00
13296.00 14108.00 14813.00
13570.00 14398.00 15196.00
13657.00 14490.00 15253.00
13019.00 13814.00 14579.00
13549.00 14376.00 14887.00
14080.00 14939.00 15725.00
14127.00 14989.00 16159.00
15083.00 16003.00 17381.00
14991.00 15906.00 17036.00
15489.00 16434.00 18101.00
15636.00 16590.00 18242.00
15408.00 16348.00 17493.00
15838.00 16804.00 18537.00
16759.00 17782.00 19666.00
17446.00 18511.00 20547.00
18692.00 19833.00 22182.00
18144.00 19251.00 20940.00
18919.00 20073.00 22088.00
18204.00 19315.00 21350.00
18486.00 19614.00 22339.00
18793.00 19940.00 22723.00
18904.00 20057.00 22975.00
19970.00 21189.00 24631.00
20917.00 22193.00 25893.00
20934.00 22211.00 26154.00
20523.00 21775.00 25704.00
21738.00 23064.00 26748.00
21490.00 22801.00 26464.00
18297.00 19413.00 22638.00
19247.00 20421.00 24089.00
20413.00 21658.00 26047.00
21691.00 23014.00 27626.00
23732.00 25180.00 29217.00
24821.00 26335.00 30438.00
24198.00 25674.00 29491.00
25473.00 27027.00 30671.00
25873.00 27452.00 31858.00
25182.00 26719.00 31106.00
26993.00 28640.00 32833.00
26164.00 27761.00 31808.00
25688.00 27255.00 31652.00
25210.00 26748.00 30785.00
26710.00 28340.00 32734.00
27664.00 29352.00 33398.00
29847.00 31668.00 35365.00
28710.00 30461.00 33590.00
29867.00 31689.00 32955.00
32943.00 34953.00 36178.00
31912.00 33859.00 35089.00
30549.00 32413.00 34370.00
31924.00 33871.00 35219.00
31541.00 33465.00 34669.00
33493.00 35536.00 36822.00
30984.00 32875.00 34878.00
30002.00 31833.00 34732.00
27605.00 29289.00 31995.00
28138.00 29854.00 32152.00
28670.00 30419.00 33293.00
25559.00 27118.00 30257.00
23928.00 25388.00 28338.00
25790.00 27363.00 30540.00
25906.00 27486.00 30745.00
25201.00 26739.00 29998.00
24705.00 26212.00 29704.00
23017.00 24422.00 27844.00
20810.00 22080.00 25595.00
21203.00 22497.00 26083.00
22868.00 24263.00 28084.00
23188.00 24603.00 28331.00
22562.00 23938.00 27918.00
22097.00 23445.00 27379.00
22840.00 24233.00 28408.00
21307.00 22607.00 26687.00
21331.00 22632.00 26489.00
19729.00 20932.00 24603.00
17906.00 18998.00 22687.00
18092.00 19196.00 22834.00
16187.00 17174.00 20352.00
17522.00 18591.00 22143.00
18684.00 19824.00 23447.00
17399.00 18460.00 22071.00
17002.00 18039.00 21493.00
16664.00 17680.00 21170.00
16757.00 17779.00 21375.00
18087.00 19191.00 23137.00
18916.00 20070.00 24356.00
19114.00 20280.00 24668.00
19476.00 20664.00 25102.00
20095.00 21321.00 25592.00
19733.00 20937.00 25320.00
20854.00 22126.00 26753.00
21133.00 22423.00 26989.00
21985.00 23326.00 28403.00
22231.00 23588.00 28926.00
02/2004 22680.00 24071.00 29318.00
The above illustration assumes a $10,000 investment made on March 1,1994, and
reinvestment of income and capital gains distributions. In addition, the graph
and table do not reflect a deduction of the taxes that a shareholder would pay
on fund distributions or the redemption of fund shares. The Standard & Poor's
(S&P) 500 Index tracks the performance of 500 large-capitalization US stocks.
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.
AVERAGE ANNUAL TOTAL RETURN AS OF 02/29/04 (%)
SHARE CLASS A B C D Z
- ----------------------------------------------------------------------------------------------------------------
INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 10/01/91
- ----------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- ----------------------------------------------------------------------------------------------------------------
6-month (cumulative) 12.90 6.40 12.44 7.44 12.44 11.44 12.45 10.33 13.09
- ----------------------------------------------------------------------------------------------------------------
1-year 36.14 28.31 34.90 29.90 34.90 33.90 34.83 32.49 36.60
- ----------------------------------------------------------------------------------------------------------------
5-year -1.29 -2.45 -1.51 -1.84 -1.51 -1.51 -1.52 -1.71 -1.19
- ----------------------------------------------------------------------------------------------------------------
10-year 9.18 8.53 9.06 9.06 9.06 9.06 9.05 8.94 9.23
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/03 (%)
SHARE CLASS A B C D Z
- -------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- -------------------------------------------------------------------------------------------------------
6-month (cumulative) 15.02 8.40 14.53 9.53 14.59 13.59 14.53 12.40 15.27
- -------------------------------------------------------------------------------------------------------
1-year 26.36 19.09 25.29 20.29 25.35 24.35 25.20 22.96 26.87
- -------------------------------------------------------------------------------------------------------
5-year -1.52 -2.68 -1.72 -2.05 -1.71 -1.71 -1.72 -1.92 -1.43
- -------------------------------------------------------------------------------------------------------
10-year 8.98 8.34 8.87 8.87 8.88 8.88 8.87 8.77 9.03
All results shown assume reinvestment of distributions. 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%, and thereafter - 0%. Class C
has a CDSC of 1% which is applicable for the first year only. Class D has a
sales charge of 1% and 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, the 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. The returns for class
C include the returns of class B prior to 10/13/03, the date on which class C
was initially offered by the fund. The returns shown for class C also include
the performance of class Z prior to the inception of class B (11/01/02). 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, C, and D would have been lower.
2
Sidebar:
SUMMARY
o FOR THE SIX-MONTH PERIOD THAT ENDED FEBRUARY 29, 2004, THE FUND'S CLASS A
SHARES RETURNED 12.90% WITHOUT SALES CHARGE.
o THE FUND'S RETURN WAS LESS THAN THE S&P 500 INDEX BUT SLIGHTLY BETTER THAN
THE AVERAGE OF THE LIPPER LARGE CAP CORE FUNDS CATEGORY.
o STRONG STOCK SELECTION IN HEALTH CARE, CONSUMER STAPLES AND TECHNOLOGY
SECTORS HELPED THE FUND'S PERFORMANCE. HOWEVER, HIGHER-THAN-INDEX EXPOSURE TO
INDUSTRIAL STOCKS AND CONSUMER CYCLICALS DETRACTED SOMEWHAT FROM THE FUND'S
RETURN.
[Illustration of 2 arrows pointing up]
CLASS A SHARES S&P 500 INDEX
12.90% 14.59%
OBJECTIVE
Seeks capital appreciation
TOTAL NET ASSETS
$415.6 million
NET ASSET VALUE PER SHARE AS OF 02/29/04 ($)
Class A 19.41
---------------------------
Class B 19.25
---------------------------
Class C 19.25
---------------------------
Class D 19.24
---------------------------
Class Z 19.41
DISTRIBUTIONS DECLARED PER SHARE 09/01/03 -- 02/29/04 ($)
Class A 0.03
--------------------------
Class B 0.00
--------------------------
Class C 0.00
--------------------------
Class D 0.00
--------------------------
Class Z 0.10
PORTFOLIO MANAGERS' REPORT______________________________________________________
COLUMBIA COMMON STOCK FUND
For the six-month period ended February 29, 2004, Columbia Common Stock Fund
class A shares returned 12.90% without sales charge. This was less than the S&P
500 Index, which returned 14.59% over the same period. The fund's performance
was slightly better than the average return of its peer group, the Lipper Large
Cap Core Funds Category which gained 12.49%.1 The fund's above-average
investment in industrials relative to the S&P 500 hurt performance when that
sector lagged from late December through early February. The fund's above-index
weight in consumer cyclical stocks also was a slight drag on performance.
However, good stock selection in financials, consumer staples, technology and
health care sectors helped overall returns.
BULL MARKET STILL STRONG
The stock market continued to rise during the period, powered by tax cuts,
historically low interest rates and a global economic recovery. Rapid growth in
China and India increased demand for industrial commodities, and the industrials
sector rebounded early in the period. However, industrial and technology stocks
began to lose steam late in the period. We viewed this as the beginning of a
transition in investor sentiment, as signs of concern over how long the good
times would last began to emerge.
THE FUND WAS POSITIONED FOR A RECOVERING ECONOMY
During the period the portfolio was positioned for a recovering economy, with
higher allocations in economically-sensitive sectors such as industrials,
information technology, basic materials and consumer cyclicals.
Our decision to overweight these sectors relative to the S&P 500 Index produced
mixed results. Our investments in basic materials stocks did well, while
industrial and consumer cyclical stocks detracted from performance. Although
industrial stocks 3M, Dover and General Electric all had positive returns for
the period, they failed to keep pace with their industry peers and the S&P 500
Index. We significantly reduced our position in Dover during the period.
In technology, where we focused on broadband, wireless information access and
digital media, the fund benefited from good stock selection. Our positions in
QUALCOMM and Broadcom both gained more than 45%, while Motorola rose 73% during
the period. Motorola, the leading supplier of wireless infrastructure equipment
and the number two manufacturer of wireless handsets, benefited from growth in
cell phone usage in a variety of international markets. On the down side,
Seagate Technology fared poorly when its earnings disappointed overly hopeful
investors.
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.
3
Sidebar:
TOP 5 SECTORS AS OF 02/29/04 (%)
Information technology 20.8
----------------------------------
Financials 19.6
----------------------------------
Industrials 14.0
----------------------------------
Consumer discretionary 11.2
----------------------------------
Health Care 10.2
TOP 10 HOLDINGS AS OF 02/29/04 (%)
Wal-mart Stores 4.2
----------------------------------
Citigroup 3.8
----------------------------------
General Electric 3.4
----------------------------------
Pfizer 3.2
----------------------------------
Microsoft 2.8
----------------------------------
Dow Chemical 2.3
----------------------------------
Exxon Mobil 2.3
----------------------------------
American Express 1.9
----------------------------------
American International Group 1.7
----------------------------------
Bank One 1.7
HOLDINGS DISCUSSED IN THIS REPORT AS OF 02/29/04 (%)
3M 1.0
----------------------------------
Dover 0.0
----------------------------------
General Electric 3.4
----------------------------------
QUALCOMM 0.8
----------------------------------
Broadcom 0.5
----------------------------------
Motorola 0.5
----------------------------------
Seagate Technology 0.6
----------------------------------
Citigroup 3.8
----------------------------------
Bank One 1.7
----------------------------------
American Express 1.9
----------------------------------
Wal-Mart Stores 4.2
----------------------------------
Altria Group 1.5
----------------------------------
Shire Pharmaceuticals Group 0.5
Your fund is actively managed and the composition of its portfolio will change
over time. Information provided is calculated as a percentage of net assets.
________________________________________________________________________________
COLUMBIA COMMON STOCK FUND
We also missed out on strong gains from telecommunications and utilities sectors
during the period. Although both have relatively small weights in the index, the
sectors rebounded during the period as investors were willing to buy back into
stocks that had been severely beaten down during the recent bear market.
STOCK SELECTION IN DEFENSIVE SECTORS HELPED PERFORMANCE
Although the fund was slightly underweight in financials relative to the index,
strong stock selection in the sector helped performance. Our holdings in
Citigroup, Bank One and American Express all gained ground as the economy picked
up and interest rates remained low. Stock selection was also a plus in the
consumer staples and health care sectors. Wal-Mart, our largest holding, and
consumer staples giant Altria Group both delivered attractive returns. Shire
Pharmaceuticals Group gained 33% as investors became more convinced of its
growth prospects.
PUTTING EXPECTATIONS IN PERSPECTIVE
Looking ahead, we anticipate lower earnings growth rates in 2004, largely
because 2003 was so strong. We believe that the economy has the potential to
continue to expand, but future growth is likely to be somewhat slower, as we
move from economic recovery to economic growth. We have some concerns about weak
new job figures, but believe that other factors, such as low interest rates and
growing global economic strength, should help market conditions remain
favorable. We continue to position the portfolio for a positive economic
environment, but may begin to shift our allocations to favor companies that
would do well in a slower growing economy.
Columbia Common Stock Fund is managed by a group of managers from Columbia's
large cap core team:
/s/ Scott J. Drysdale /s/ Ronald F. Gibbs
Scott J. Drysdale Ronald F. Gibbs, CFA
/s/ Trent E. Nevills /s/ Guy W. Pope
Trent E. Nevills Guy W. Pope, CFA
An investment in the fund may present certain risks, including stock market
fluctuations that occur in response to economic and business developments.
4
Sidebar:
PERFORMANCE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04 ($)
SALES CHARGE WITHOUT WITH
------------------------------------
Class A 20,010 18,862
------------------------------------
Class B 19,809 19,809
------------------------------------
Class C 19,765 19,765
------------------------------------
Class D 19,832 19,636
------------------------------------
Class G 19,839 19,839
------------------------------------
Class Z 20,107 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 the original cost. Please visit www.columbiafunds.com for
daily and most recent month-end performance updates.
PERFORMANCE INFORMATION ________________________________________________________
COLUMBIA GROWTH FUND
VALUE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04
(MOUNTAIN CHART)
CLASS A CLASS A RUSSELL
SHARES SHARES 1000
WITHOUT WITH SALES S&P 500 GROWTH
SALES CHARGE CHARGE INDEX INDEX
------------ ---------- --------- --------
03/1994 9425.00 10000.00 10000.00 10000.00
8865.00 9406.00 9564.00 9517.00
8956.00 9502.00 9686.00 9561.00
8983.00 9531.00 9845.00 9706.00
8646.00 9173.00 9604.00 9419.00
9011.00 9561.00 9919.00 9741.00
9356.00 9926.00 10326.00 10283.00
9129.00 9686.00 10073.00 10145.00
9300.00 9867.00 10299.00 10383.00
8994.00 9543.00 9925.00 10050.00
9121.00 9677.00 10071.00 10219.00
9143.00 9700.00 10332.00 10437.00
9587.00 10172.00 10735.00 10875.00
9932.00 10538.00 11052.00 11192.00
10071.00 10685.00 11377.00 11437.00
10299.00 10927.00 11832.00 11835.00
10688.00 11340.00 12106.00 12292.00
11110.00 11788.00 12508.00 12803.00
11305.00 11994.00 12540.00 12818.00
11602.00 12310.00 13069.00 13408.00
11305.00 11995.00 13022.00 13418.00
12010.00 12743.00 13593.00 13940.00
12129.00 12869.00 13856.00 14019.00
12255.00 13003.00 14327.00 14487.00
12817.00 13599.00 14460.00 14753.00
12772.00 13551.00 14599.00 14772.00
13195.00 13999.00 14813.00 15160.00
13577.00 14405.00 15196.00 15689.00
13573.00 14401.00 15253.00 15711.00
12556.00 13322.00 14579.00 14791.00
12983.00 13775.00 14887.00 15172.00
13743.00 14581.00 15725.00 16277.00
13986.00 14839.00 16159.00 16374.00
14839.00 15745.00 17381.00 17604.00
14651.00 15545.00 17036.00 17259.00
15165.00 16090.00 18101.00 18469.00
15179.00 16105.00 18242.00 18343.00
14406.00 15285.00 17493.00 17351.00
15121.00 16043.00 18537.00 18503.00
16150.00 17136.00 19666.00 19839.00
16822.00 17849.00 20547.00 20633.00
18314.00 19432.00 22182.00 22457.00
17642.00 18719.00 20940.00 21143.00
18343.00 19462.00 22088.00 22183.00
17880.00 18971.00 21350.00 21362.00
18376.00 19497.00 22339.00 22270.00
18504.00 19633.00 22723.00 22520.00
19000.00 20159.00 22975.00 23193.00
20397.00 21641.00 24631.00 24937.00
21362.00 22665.00 25893.00 25932.00
21426.00 22733.00 26154.00 26290.00
20909.00 22185.00 25704.00 25543.00
22494.00 23867.00 26748.00 27107.00
22166.00 23518.00 26464.00 26928.00
18517.00 19647.00 22638.00 22886.00
19208.00 20380.00 24089.00 24643.00
20286.00 21523.00 26047.00 26625.00
21622.00 22942.00 27626.00 28651.00
24124.00 25596.00 29217.00 31235.00
25644.00 27208.00 30438.00 33069.00
24793.00 26305.00 29491.00 31557.00
26297.00 27902.00 30671.00 33221.00
26347.00 27955.00 31858.00 33264.00
25689.00 27256.00 31106.00 32243.00
27636.00 29322.00 32833.00 34500.00
26671.00 28299.00 31808.00 33402.00
25941.00 27523.00 31652.00 33947.00
25458.00 27011.00 30785.00 33234.00
26884.00 28524.00 32734.00 35743.00
28177.00 29896.00 33398.00 37673.00
30403.00 32258.00 35365.00 41591.00
29366.00 31158.00 33590.00 39641.00
31031.00 32924.00 32955.00 41579.00
34320.00 36414.00 36178.00 44556.00
32920.00 34929.00 35089.00 42435.00
30843.00 32725.00 34370.00 40297.00
33579.00 35627.00 35219.00 43351.00
33397.00 35435.00 34669.00 41543.00
36089.00 38291.00 36822.00 45303.00
32931.00 34940.00 34878.00 41017.00
30979.00 32869.00 34732.00 39077.00
27305.00 28970.00 31995.00 33317.00
27987.00 29695.00 32152.00 32264.00
29574.00 31378.00 33293.00 34494.00
24860.00 26377.00 30257.00 28637.00
22150.00 23502.00 28338.00 25521.00
24923.00 26444.00 30540.00 28750.00
24657.00 26161.00 30745.00 28327.00
24119.00 25591.00 29998.00 27670.00
23084.00 24493.00 29704.00 26978.00
21095.00 22382.00 27844.00 24771.00
18810.00 19958.00 25595.00 22299.00
19871.00 21083.00 26083.00 23470.00
21951.00 23291.00 28084.00 25725.00
21998.00 23340.00 28331.00 25676.00
21093.00 22380.00 27918.00 25222.00
19978.00 21196.00 27379.00 24175.00
20743.00 22008.00 28408.00 25012.00
19009.00 20168.00 26687.00 22971.00
18784.00 19930.00 26489.00 22415.00
16912.00 17943.00 24603.00 20341.00
15283.00 16215.00 22687.00 19223.00
15515.00 16462.00 22834.00 19280.00
13930.00 14779.00 20352.00 17281.00
15101.00 16022.00 22143.00 18866.00
15775.00 16737.00 23447.00 19890.00
14617.00 15508.00 22071.00 18516.00
14294.00 15166.00 21493.00 18066.00
14209.00 15076.00 21170.00 17983.00
14441.00 15322.00 21375.00 18317.00
15550.00 16499.00 23137.00 19671.00
16307.00 17302.00 24356.00 20652.00
16469.00 17473.00 24668.00 20937.00
16826.00 17853.00 25102.00 21459.00
17269.00 18322.00 25592.00 21993.00
16847.00 17875.00 25320.00 21758.00
17767.00 18851.00 26753.00 22980.00
17991.00 19089.00 26989.00 23222.00
18412.00 19535.00 28403.00 24025.00
18742.00 19885.00 28926.00 24515.00
02/2004 18862.00 20010.00 29318.00 24668.00
The above illustration assumes a $10,000 investment made on March 1, 1994, and
reinvestment of income and capital gains distributions. In addition, the graph
and table do not reflect a deduction of the taxes that a shareholder would pay
on fund distributions or the redemption of fund shares. The S&P 500 Index tracks
the performance of 500 large-capitalization US stocks. The Russell 1000 Growth
Index is an unmanaged index that measures the performance of those Russell 1000
companies with higher price-to-book ratios and higher forecasted growth values
(the Russell 1000 Index measures the performance of the 1000 largest US
companies based on total market capitalization). Unlike the fund, indices are
not investments, do not incur fees 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 02/29/04 (%)
SHARE CLASS A B C D G Z
- -------------------------------------------------------------------------------------------------------------------
INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 11/01/02 6/16/67
- -------------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- -------------------------------------------------------------------------------------------------------------------
6-month (cumulative) 9.22 2.94 8.75 3.75 8.50 7.50 8.82 6.75 8.82 3.82 9.35
- -------------------------------------------------------------------------------------------------------------------
1-year 32.74 25.11 31.67 26.67 31.37 30.37 31.82 29.51 31.87 26.87 33.25
- -------------------------------------------------------------------------------------------------------------------
5-year -5.32 -6.44 -5.51 -5.82 -5.56 -5.56 -5.49 -5.68 -5.49 -5.95 -5.23
- -------------------------------------------------------------------------------------------------------------------
10-year 7.18 6.55 7.07 7.07 7.05 7.05 7.09 6.98 7.09 7.09 7.23
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/03 (%)
SHARE CLASS A B C D G Z
- --------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- --------------------------------------------------------------------------------------------------------------
6-month (cumulative) 11.80 5.37 11.29 6.29 11.08 10.08 11.42 9.32 11.46 6.46 12.02
- --------------------------------------------------------------------------------------------------------------
1-year 25.97 18.73 24.98 19.98 24.74 23.74 25.07 22.83 25.11 20.11 26.47
- --------------------------------------------------------------------------------------------------------------
5-year -5.26 -6.37 -5.42 -5.73 -5.46 -5.46 -5.41 -5.60 -5.39 -5.85 -5.17
- --------------------------------------------------------------------------------------------------------------
10-year 7.21 6.58 7.12 7.12 7.10 7.10 7.13 7.02 7.14 7.14 7.26
All results shown assume reinvestment of distributions. 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%, and thereafter - 0%. Class C
has a CDSC of 1% which is applicable for the first year only. Class D has a
sales charge of 1% and 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, the 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. The returns for
class C include the returns of class B prior to 10/13/03, the date on which
class C was initially offered by the fund. The returns shown for class C also
include the performance of class Z prior to the inception of class B (11/01/02).
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, C, D and G would have been lower.
5
Sidebar:
SUMMARY
o FOR THE SIX-MONTH PERIOD THAT ENDED FEBRUARY 29, 2004, THE FUND'S CLASS A
SHARES RETURNED 9.22% WITHOUT SALES CHARGE.
o THE FUND TRAILED THE RUSSELL 1000 GROWTH AND S&P 500 INDICES, AS WELL AS THE
LIPPER LARGE CAP GROWTH FUNDS CATEGORY AVERAGE.
o WEAK STOCK SELECTION IN THE TECHNOLOGY SECTOR AS WELL AS LACKLUSTER RETURNS
FROM MEDIA STOCKS DETRACTED FROM RELATIVE PERFORMANCE.
[Illustration of 2 arrows pointing up]
RUSSELL 1000
CLASS A SHARES GROWTH INDEX
9.22% 12.17%
OBJECTIVE
Seeks capital appreciation
TOTAL NET ASSETS
$960.2 million
NET ASSET VALUE PER SHARE AS OF 02/29/04 ($)
Class A 26.88
---------------------------
Class B 26.61
---------------------------
Class C 26.55
---------------------------
Class D 26.64
---------------------------
Class G 26.65
---------------------------
Class Z 27.01
DISTRIBUTIONS DECLARED PER SHARE 09/01/03 - 02/29/04 ($)
Class A 0.00
---------------------------
Class B 0.00
---------------------------
Class C 0.00
---------------------------
Class D 0.00
---------------------------
Class G 0.00
---------------------------
Class Z 0.00
PORTFOLIO MANAGERS' REPORT______________________________________________________
COLUMBIA GROWTH FUND
For the six-month period ended February 29, 2004, Columbia Growth Fund's class A
shares returned 9.22% without sales charge. The fund came out behind the Russell
1000 Growth Index and S&P 500 Index, which returned 12.17% and 14.59%,
respectively, over the same period. The fund also trailed the Lipper Large Cap
Growth Funds Category average, which returned 9.91%.1 Stock selection in the
technology sector and lackluster returns from media holdings hurt the fund's
return relative to its benchmarks, and we believe the same factors hurt the
fund's return relative to its peer group.
CYCLICAL BIAS IN AN IMPROVING ECONOMY
Throughout the period, we favored cyclical stocks--particularly technology,
industrial and media names--which we believed would benefit from a strengthening
economy. Across sectors, we targeted large companies with strong competitive
positions, high and sustainable profits, good balance sheets and above-average
sales growth. As the stock market rallied, these high quality large company
stocks did well, but they trailed smaller company issues with less dependable
earnings.
STRONG GAINS FROM HEALTH CARE, INDUSTRIALS
Health care, industrials and materials stocks were among the fund's best
performers. Within health care, our focus on medical device companies paid off.
St. Jude Medical, which makes cardiac rhythm management products, and Boston
Scientific, which makes drug-coated stents, both posted robust gains. Another
standout was Caremark Rx, a pharmacy benefits manager, that began to reap
benefits from a recently announced merger. The fund sustained losses from its
investment in Gilead Sciences, a biotechnology company with short-term inventory
issues, and Biovail, a generic drug company, which we sold after accounting
problems surfaced.
Industrials and materials stocks benefited from increased demand and higher
commodity prices. We boosted the fund's stake, targeting global companies
positioned to take advantage of exploding growth in countries such as China. New
purchases included 3M, Alcoa and Praxair, an industrial gas company. Among the
top gainers were Tyco International, which rebounded under new management, and
Alcoa, which rallied amid rising demand and tight bauxite supplies. Bauxite is
the principal ore used in manufacturing aluminum.
DISAPPOINTING TECHNOLOGY AND MEDIA RETURNS
Corporations continued to limit discretionary spending, which hindered
technology and media sales. In technology, we focused on themes such as the
spread of broadband and WiFi (the wireless Internet), the growing
1 Lipper Inc., a widely respected data provider in the industry, calculates an
average total return for mutual funds with similar investment objectives as
the fund.
6
Sidebar:
TOP 5 SECTORS AS OF 02/29/04 (%)
Information technology 31.7
----------------------------------
Health care 19.7
----------------------------------
Consumer discretionary 15.1
----------------------------------
Industrials 12.8
----------------------------------
Consumer staples 9.8
TOP 10 HOLDINGS AS OF 02/29/04 (%)
General Electric 6.4
----------------------------------
Pfizer 4.9
----------------------------------
Intel 4.1
----------------------------------
Microsoft 3.8
----------------------------------
Cisco Systems 3.5
----------------------------------
Wal-mart Stores 2.6
----------------------------------
Amgen 2.5
----------------------------------
Teva Pharmaceutical Industries 2.4
----------------------------------
Caremark Rx 2.0
----------------------------------
Viacom 2.0
HOLDINGS DISCUSSED IN THIS REPORT AS OF 02/29/04 (%)
St. Jude Medical 1.3
----------------------------------
Boston Scientific 1.5
----------------------------------
Caremark Rx 2.0
----------------------------------
Gilead Sciences 1.3
----------------------------------
3M 1.3
----------------------------------
Alcoa 1.6
----------------------------------
Praxair 1.5
----------------------------------
Tyco International 1.7
----------------------------------
Cisco Systems 3.5
----------------------------------
QUALCOMM 1.8
----------------------------------
QLogic 0.4
----------------------------------
Paychex 0.9
----------------------------------
Viacom 2.0
Your fund is actively managed and the composition of its portfolio will change
over time. Information provided is calculated as a percentage of net assets.
________________________________________________________________________________
COLUMBIA GROWTH FUND
popularity of notebook computers, advances in computer graphics, increased
spending on data networking and growing cell phone handset sales. Both Cisco
Systems, a leader in data networking, and QUALCOMM, which makes semiconductors
for cell phones, rallied nicely. However, QLogic and Seagate Technology, which
supply parts, peripherals and other components to technology systems companies,
declined amid earnings shortfalls. We reduced our stake in QLogic and sold
Seagate. Our investment in Paychex, a company that provides payroll and
processing services for small businesses, was a disappointment. The stock
suffered as job growth remained weak.
Media stocks such as Liberty Media (no longer in the portfolio) and Viacom
faltered as advertising spending failed to pick up as quickly as we expected in
a strengthening economy. Nevertheless, media stocks started to turn around late
in the period. We remain optimistic that the industry will benefit as
year-over-year earnings comparisons improve and the summer Olympics and
Presidential election bolster ad spending.
FAVORABLE OUTLOOK FOR LARGE-CAP STOCKS
As the US economic expansion moves into its later stages, we expect large
company and higher quality stocks to lead the market. Most large companies have
global businesses that can benefit from continued strong economic growth in
countries such as China and India. As the rate of US economic growth slows, we
plan to shift the portfolio's bias away from cyclical stocks and toward stocks
with less economic sensitivity and records of more consistent earnings growth.
Alexander S. Macmillan, CFA, has managed or
co-managed Columbia Growth Fund since 1992 and has
been with the advisor and its predecessors since
1989.
/s/ Alexander S. Macmillan
Paul J. Berlinquet has co-managed the fund since
October 2003 and has been with the advisor and its
predecessors since 2003.
/s/ Paul J. Berlinquet
An investment in the fund may present certain risks, including stock market
fluctuations that occur in response to economic and business developments. The
fund may invest in foreign securities, which have special risks, including
political or economic instability and higher transaction costs; different
regulations, accounting standards, trading practices and levels of information;
and currency exchange rate fluctuations.
The fund's approach offers the potential for long-term growth, but also involves
the possibility of losses due to the sensitivity of growth stock prices to
changes in current or expected earnings.
7
Sidebar:
PERFORMANCE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04 ($)
SALES CHARGE WITHOUT WITH
-----------------------------------
Class A 16,456 15,515
-----------------------------------
Class B 16,228 16,228
-----------------------------------
Class C 16,276 16,276
-----------------------------------
Class D 16,336 16,169
-----------------------------------
Class Z 16,595 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 the original cost. Please visit www.columbiafunds.com for
daily and most recent month-end performance updates.
PERFORMANCE INFORMATION_________________________________________________________
COLUMBIA INTERNATIONAL STOCK FUND
VALUE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04
(MOUNTAIN CHART)
CLASS A
SHARES
WITHOUT CLASS A MSCI ALL
SALES SHARES WITH COUNTRY WORLD MSCI EAFE
CHARGE SALES CHARGE EX US INDEX INDEX
-------- ------------- ------------- ---------
03/1994 10000.00 9425.00 10000.00 10000.00
9549.00 9000.00 9542.00 9569.00
9800.00 9237.00 9865.00 9975.00
9711.00 9153.00 9868.00 9918.00
9756.00 9195.00 9938.00 10058.00
9793.00 9230.00 10100.00 10154.00
10082.00 9502.00 10440.00 10395.00
9742.00 9182.00 10181.00 10067.00
10045.00 9467.00 10455.00 10403.00
9527.00 8980.00 9951.00 9902.00
9350.00 8813.00 9928.00 9965.00
8636.00 8139.00 9477.00 9582.00
8486.00 7998.00 9426.00 9554.00
8809.00 8302.00 9959.00 10150.00
9005.00 8487.00 10347.00 10532.00
8899.00 8387.00 10301.00 10407.00
8862.00 8352.00 10158.00 10225.00
9448.00 8905.00 10734.00 10862.00
9291.00 8756.00 10362.00 10448.00
9516.00 8969.00 10539.00 10652.00
9411.00 8870.00 10258.00 10365.00
9599.00 9047.00 10499.00 10653.00
9832.00 9267.00 10914.00 11083.00
9960.00 9387.00 11064.00 11128.00
9960.00 9387.00 11064.00 11166.00
10329.00 9735.00 11271.00 11403.00
10720.00 10104.00 11612.00 11734.00
10893.00 10266.00 11438.00 11518.00
11089.00 10451.00 11497.00 11583.00
10517.00 9912.00 11115.00 11245.00
10682.00 10067.00 11180.00 11269.00
10953.00 10323.00 11458.00 11569.00
10893.00 10266.00 11343.00 11451.00
11314.00 10664.00 11781.00 11907.00
11464.00 10804.00 11644.00 11753.00
11456.00 10797.00 11430.00 11342.00
11779.00 11101.00 11639.00 11528.00
11894.00 11210.00 11615.00 11570.00
12175.00 11475.00 11714.00 11631.00
12877.00 12137.00 12436.00 12388.00
13489.00 12713.00 13123.00 13071.00
13894.00 13095.00 13388.00 13282.00
12818.00 12081.00 12334.00 12290.00
13695.00 12908.00 13001.00 12978.00
12745.00 12012.00 11894.00 11980.00
12687.00 11958.00 11745.00 11858.00
12779.00 12044.00 11880.00 11961.00
12881.00 12140.00 12235.00 12508.00
13404.00 12633.00 13051.00 13311.00
13861.00 13064.00 13503.00 13721.00
14206.00 13389.00 13600.00 13829.00
14402.00 13574.00 13353.00 13762.00
14448.00 13617.00 13303.00 13866.00
14532.00 13696.00 13430.00 14006.00
12554.00 11832.00 11536.00 12271.00
11892.00 11209.00 11293.00 11894.00
12853.00 12114.00 12476.00 13133.00
13749.00 12959.00 13146.00 13806.00
14419.00 13590.00 13598.00 14350.00
14857.00 14003.00 13583.00 14307.00
14493.00 13660.00 13279.00 13966.00
14867.00 14012.00 13921.00 14549.00
15325.00 14444.00 14617.00 15138.00
14784.00 13934.00 13930.00 14358.00
15540.00 14646.00 14570.00 14918.00
16174.00 15244.00 14911.00 15361.00
16528.00 15577.00 14963.00 15418.00
16873.00 15903.00 15064.00 15574.00
17788.00 16765.00 15624.00 16158.00
20027.00 18876.00 16249.00 16719.00
22771.00 21462.00 17799.00 18220.00
21682.00 20436.00 16833.00 17063.00
23120.00 21791.00 17287.00 17522.00
22741.00 21433.00 17937.00 18202.00
20853.00 19654.00 16936.00 17244.00
19237.00 18131.00 16503.00 16824.00
20036.00 18883.00 17206.00 17481.00
19118.00 18019.00 16526.00 16749.00
19697.00 18565.00 16731.00 16895.00
18480.00 17417.00 15802.00 16072.00
17652.00 16637.00 15300.00 15693.00
16854.00 15885.00 14615.00 15104.00
17618.00 16605.00 15113.00 15640.00
17522.00 16515.00 15340.00 15633.00
16580.00 15626.00 14125.00 14460.00
15434.00 14547.00 13126.00 13496.00
16388.00 15446.00 14019.00 14434.00
16137.00 15209.00 13632.00 13924.00
15613.00 14715.00 13110.00 13355.00
15101.00 14232.00 12817.00 13112.00
14814.00 13962.00 12499.00 12780.00
13347.00 12580.00 11173.00 11485.00
13717.00 12928.00 11486.00 11779.00
14039.00 13232.00 12011.00 12214.00
14364.00 13538.00 12166.00 12286.00
13730.00 12941.00 11645.00 14468.00
13826.00 13031.00 11729.00 11715.00
14471.00 13638.00 12352.00 12405.00
14543.00 13707.00 12447.00 12429.00
14687.00 13842.00 12583.00 12587.00
14293.00 13471.00 12039.00 12086.00
13064.00 12313.00 10865.00 10893.00
12945.00 12201.00 10866.00 10868.00
11620.00 10951.00 9715.00 9701.00
12041.00 11349.00 10235.00 10222.00
12425.00 11711.00 10728.00 10686.00
12054.00 11361.00 10382.00 10327.00
11514.00 10852.00 10018.00 9896.00
11346.00 10693.00 9814.00 9670.00
11262.00 10614.00 9624.00 9480.00
12041.00 11349.00 10552.00 10409.00
12701.00 11971.00 11224.00 11040.00
12928.00 12185.00 11535.00 11307.00
13276.00 12513.00 11842.00 11581.00
13600.00 12818.00 12194.00 11860.00
13971.00 13168.00 12536.00 12225.00
14799.00 13948.00 13348.00 12987.00
14942.00 14083.00 13639.00 13275.00
15937.00 15021.00 14680.00 14312.00
16261.00 15326.00 14916.00 14514.00
02/2004 16456.00 15515.00 15297.00 14852.00
The above illustration assumes a $10,000 investment made on March 1, 1994, and
reinvestment of income and capital gains distributions. In addition, the graph
and table do not reflect a deduction of the taxes that a shareholder would pay
on fund distributions or the redemption of fund shares. The Morgan Stanley
Capital International (MSCI) All Country (AC) World 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 unmanaged, 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 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 02/29/04 (%)
SHARE CLASS A B C D Z
- ------------------------------------------------------------------------------------------------------------
INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 10/01/92
- ------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- ------------------------------------------------------------------------------------------------------------
6-month (cumulative) 21.08 14.11 20.57 15.57 20.93 19.93 20.94 18.78 21.46
- ------------------------------------------------------------------------------------------------------------
1-year 45.14 36.79 43.89 38.89 44.31 43.31 44.69 42.18 46.21
- ------------------------------------------------------------------------------------------------------------
5-year 2.58 1.37 2.29 1.97 2.35 2.35 2.43 2.22 2.75
- ------------------------------------------------------------------------------------------------------------
10-year 5.11 4.49 4.96 4.96 4.99 4.99 5.03 4.92 5.20
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/03 (%)
SHARE CLASS A B C D Z
- ------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- ------------------------------------------------------------------------------------------------------
6-month (cumulative) 23.28 16.20 22.71 17.71 22.80 21.80 22.93 20.69 23.50
- ------------------------------------------------------------------------------------------------------
1-year 32.24 24.64 31.04 26.04 31.14 30.14 31.64 29.35 33.08
- ------------------------------------------------------------------------------------------------------
5-year 2.02 0.82 1.77 1.45 1.79 1.79 1.86 1.65 2.15
- ------------------------------------------------------------------------------------------------------
10-year 5.21 4.59 5.08 5.08 5.09 5.09 5.13 5.03 5.28
All results shown assume reinvestment of distributions. The "with sales charge"
returns include the maximum 5.75% charge for class A shares and 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%, and thereafter - 0%. Class C
has a CDSC of 1% which is applicable for the first year only. Class D has a
sales charge of 1% and 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, the 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. The returns for class
C include the returns of class B prior to 10/13/03, the date on which class C
was initially offered by the fund. The returns shown for class C also include
the performance of class Z prior to the inception of class B (11/01/02). 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, C and D would have been lower.
8
Sidebar:
SUMMARY
o FOR THE SIX-MONTH PERIOD THAT ENDED FEBRUARY 29, 2004, THE FUND'S CLASS A
SHARES RETURNED 21.08% WITHOUT SALES CHARGE.
o THE FUND'S RETURN WAS LESS THAN ITS BENCHMARK, THE MSCI AC WORLD EX US INDEX.
o THE FUND'S PERFORMANCE WAS HINDERED BY A RELATIVELY SMALL COMMITMENT TO
GERMAN SECURITIES, WHICH WERE STRONG PERFORMERS DURING THE PERIOD.
[Illustration of 2 arrows pointing up]
MSCI AC WORLD
CLASS A SHARES EX US INDEX
21.08% 25.41%
OBJECTIVE
Seeks long-term
capital appreciation
TOTAL NET ASSETS
$542.9 million
NET ASSET VALUE PER SHARE
AS OF 02/29/04 ($)
Class A 13.73
---------------------------
Class B 13.54
---------------------------
Class C 13.58
---------------------------
Class D 13.63
---------------------------
Class Z 13.80
DISTRIBUTIONS DECLARED PER SHARE
09/01/03 - 02/29/04 ($)
Class A 0.00
--------------------------
Class B 0.00
--------------------------
Class C 0.00
--------------------------
Class D 0.00
--------------------------
Class Z 0.04
PORTFOLIO MANAGER'S REPORT______________________________________________________
COLUMBIA INTERNATIONAL STOCK FUND
For the six-month period ended February 29, 2004, Columbia International Stock
Fund class A shares returned 21.08% without sales charge. The fund's return was
strong as prospects for improved global economic growth drove international
stock markets higher over the six-month reporting period. However, the fund
trailed the MSCI AC World ex US Index, which returned 25.41% during the same
period. The portfolio underperformed its benchmark principally because of a
relatively small commitment to German securities.
GERMAN STOCKS REBOUNDED
We limited our investment in German stocks because the prospects for the German
market appeared unattractive at the beginning of the period and indeed, the
German stock market had performed poorly prior to this reporting period in the
first half of 2003. However, German stocks rebounded strongly in the second half
of 2003 in response to government changes in financial policy, and the fund did
not fully participate in the gains. We subsequently added to our German holdings
after research visits to Europe provided a more positive view of the country's
investment and economic environment. We invested in Allianz AG, a German
insurance company, which aided the fund's return.
AN IMPROVED INVESTMENT ENVIRONMENT
The portfolio benefited from investments in the materials, energy and
industrials sectors, all of which responded positively to an improving economy.
As the dollar fell, returns to US investors got an additional boost because the
value of securities purchased in local currencies rose when converted to US
dollars. The dollar was particularly weak against the Japanese yen and the euro,
which gained 7% and 14% against the dollar, respectively, during the period.
EXPOSURE TO JAPAN AND THAILAND MAINTAINED, CHINA REDUCED
We maintained relatively large weights in Thailand and Japan, a strategy that
generally benefited the fund's return. In Thailand, which was the strongest
performing market held by the fund during the period, we favored stocks with the
potential to benefit from the country's infrastructure development, such as Siam
Cement and Land and Houses. Both positions gained ground during the period. In
Japan, which was the portfolio's largest country weight, we added UFJ Holdings,
a large bank, to the portfolio and added to our position in Millea Holdings, an
insurance company, after they reacted positively to changes in government
policies regarding financial institutions. Both stocks were strong performers
for the portfolio, although Japanese stocks generally lagged other world markets
in the last months of the period.
9
Sidebar:
TOP 5 COUNTRIES AS OF 02/29/04 (%)
Japan 21.7
--------------------------------------
United Kingdom 21.6
--------------------------------------
Germany 8.6
--------------------------------------
France 6.4
--------------------------------------
Netherlands 4.8
TOP 10 HOLDINGS AS OF 02/29/04 (%)
BP PLC, ADR 2.2
--------------------------------------
Eni S.p.A. 2.2
--------------------------------------
Siemens AG 1.9
--------------------------------------
Credit Suisse Group 1.8
--------------------------------------
Samsung Electronics 1.8
--------------------------------------
Allianz AG 1.7
--------------------------------------
Matsushita Electronic Industrial 1.6
--------------------------------------
Ing Groep NV 1.6
--------------------------------------
Smith & Nephew PLC 1.6
--------------------------------------
Reckitt Benckiser PLC 1.6
HOLDINGS DISCUSSED IN THIS REPORT AS OF 02/29/04 (%)
Allianz AG 1.7
--------------------------------------
Siam Cement 1.3
--------------------------------------
Land and Houses 0.5
--------------------------------------
UFJ Holdings 0.8
--------------------------------------
Millea Holdings 1.4
Your fund is actively managed and the composition of its portfolio will change
over time. Information provided is calculated as a percentage of net assets.
________________________________________________________________________________
COLUMBIA INTERNATIONAL STOCK FUND
Near the end of the period, we reduced our exposure to China and other emerging
markets in Asia because valuations were high. While we continue to believe in
China's prospects, we became concerned about the country's ability to sustain
its recent strong economic growth. We believe that the emergence of a property
construction bubble, structural weakness in the banking system and rapidly
developing shortages in electric power capacity could cause Chinese authorities
to slow the country's extraordinary growth.
POSITIVE OUTLOOK FOR EUROPEAN AND JAPANESE COMPANIES
We have positioned the portfolio to take advantage of the trend toward
restructuring among European companies and the attractive valuations and
earnings forecasts offered by Japanese companies. Although we reduced the fund's
overall exposure to emerging markets, we made modest new investments in the
emerging markets of Eastern Europe. We believe that these markets have the
potential to perform well as they become more integrated with Western Europe. We
will continue to monitor emerging markets and take advantage of investment
opportunities as they arise.
Photo of: James M. McAlear
James M. McAlear has managed the Columbia
International Stock Fund since its inception.
/s/ James M. McAlear
An investment in the fund offers the potential for long-term growth, but also
involves certain risks, including stock market fluctuations due to economic and
business developments. There are also specific risks involved when investing in
foreign stocks, such as currency exchange rate fluctuations, economic change,
instability of emerging countries and political developments.
10
Sidebar:
PERFORMANCE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04 ($)
SALES CHARGE WITHOUT WITH
-----------------------------------
Class A 23,038 21,716
-----------------------------------
Class B 22,814 22,814
-----------------------------------
Class C 22,849 22,849
-----------------------------------
Class D 22,826 22,593
-----------------------------------
Class G 22,778 22,778
-----------------------------------
Class T 23,097 21,772
-----------------------------------
Class Z 23,203 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 the original cost. Please visit www.columbiafunds.com for
daily and most recent month-end performance updates.
PERFORMANCE INFORMATION ________________________________________________________
COLUMBIA MID CAP GROWTH FUND
VALUE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04
(MOUNTAIN CHART)
CLASS A
SHARES CLASS A RUSSELL
WITHOUT SHARES WITH MIDCAP RUSSELL
SALES CHARGE SALES CHARGE GROWTH INDEX MIDCAP INDEX
------------ ------------ ------------ ------------
03/1994 9425.00 10000.00 10000.00 10000.00
9064.00 9617.00 9529.00 9574.00
9119.00 9676.00 9506.00 9640.00
9027.00 9578.00 9520.00 9654.00
8708.00 9239.00 9111.00 9368.00
8870.00 9411.00 9363.00 9689.00
9258.00 9823.00 9921.00 10148.00
9235.00 9798.00 9758.00 9901.00
9471.00 10049.00 9927.00 9976.00
9059.00 9612.00 9489.00 9536.00
9233.00 9797.00 9622.00 9660.00
9139.00 9697.00 9737.00 9858.00
9455.00 10032.00 10255.00 10369.00
9707.00 10299.00 10662.00 10665.00
9737.00 10331.00 10752.00 10826.00
9851.00 10452.00 11016.00 11182.00
10478.00 11118.00 11518.00 11558.00
11274.00 11961.00 12242.00 12120.00
11462.00 12161.00 12377.00 12305.00
11644.00 12355.00 12653.00 12583.00
11160.00 11841.00 12333.00 12302.00
11762.00 12480.00 12884.00 12913.00
11959.00 12688.00 12890.00 12988.00
11869.00 12593.00 13118.00 13262.00
12399.00 13155.00 13614.00 13574.00
12700.00 13475.00 13722.00 13770.00
13810.00 14652.00 14385.00 14160.00
14201.00 15067.00 14678.00 14374.00
13387.00 14204.00 14235.00 14158.00
12076.00 12813.00 13130.00 13282.00
12813.00 13595.00 13840.00 13914.00
13309.00 14121.00 14719.00 14602.00
12935.00 13724.00 14547.00 14718.00
13654.00 14487.00 15404.00 15615.00
13522.00 14347.00 15145.00 15455.00
13842.00 14687.00 15815.00 16033.00
13625.00 14456.00 15467.00 16009.00
12964.00 13755.00 14593.00 15329.00
12868.00 13653.00 14950.00 15711.00
14074.00 14932.00 16290.00 16858.00
14530.00 15416.00 16741.00 17409.00
15348.00 16284.00 18343.00 18861.00
15300.00 16234.00 18163.00 18655.00
16042.00 17021.00 19083.00 19720.00
15109.00 16030.00 18127.00 18953.00
15266.00 16197.00 18317.00 19404.00
15232.00 16161.00 18557.00 19940.00
14825.00 15730.00 18223.00 19565.00
15773.00 16735.00 19936.00 21095.00
16773.00 17796.00 20771.00 22095.00
16721.00 17741.00 21053.00 22150.00
16284.00 17278.00 20188.00 21466.00
16548.00 17558.00 20760.00 21764.00
15420.00 16360.00 19871.00 20726.00
13487.00 14310.00 16078.00 17410.00
14428.00 15308.00 17293.00 18536.00
15029.00 15946.00 18566.00 19800.00
15721.00 16680.00 19819.00 20737.00
17767.00 18851.00 21872.00 21952.00
17407.00 18469.00 22528.00 21915.00
15971.00 16945.00 21427.00 21185.00
16423.00 17424.00 22620.00 21848.00
16956.00 17991.00 23652.00 23463.00
17002.00 18039.00 23347.00 23395.00
18191.00 19300.00 24976.00 24220.00
17716.00 18797.00 24182.00 23554.00
17384.00 18445.00 23931.00 22944.00
17624.00 18700.00 23727.00 22137.00
18685.00 19825.00 25561.00 23186.00
20995.00 22276.00 28209.00 23854.00
24222.00 25700.00 33095.00 25953.00
24634.00 26136.00 33089.00 25094.00
31659.00 33591.00 40044.00 27024.00
31149.00 33050.00 40084.00 28572.00
28106.00 29821.00 36192.00 27221.00
26569.00 28190.00 33553.00 26499.00
29515.00 31316.00 37113.00 27284.00
28349.00 30079.00 34764.00 26978.00
32315.00 34287.00 40007.00 29562.00
31637.00 33567.00 38050.00 29140.00
29429.00 31224.00 35448.00 28691.00
25164.00 26700.00 27745.00 26109.00
27578.00 29260.00 29207.00 28096.00
27100.00 28754.00 30875.00 28548.00
24054.00 25522.00 25533.00 26809.00
21986.00 23327.00 21880.00 25147.00
24088.00 25557.00 25527.00 27297.00
23695.00 25140.00 25407.00 27805.00
23259.00 24678.00 25420.00 27544.00
22410.00 23777.00 23706.00 26756.00
21137.00 22427.00 21988.00 25726.00
18749.00 19892.00 18353.00 22623.00
19427.00 20613.00 20282.00 23519.00
21018.00 22301.00 22466.00 25490.00
21790.00 23119.00 23320.00 26515.00
21055.00 22340.00 22562.00 26356.00
20110.00 21337.00 21283.00 26076.00
21299.00 22598.00 22907.00 27641.00
20753.00 22019.00 21695.00 27105.00
20419.00 21665.00 21049.00 26798.00
19008.00 20168.00 18725.00 25003.00
17552.00 18623.00 16905.00 22563.00
17141.00 18187.00 16846.00 22687.00
16386.00 17385.00 15508.00 20593.00
16841.00 17868.00 16710.00 21633.00
17319.00 18376.00 18018.00 23134.00
16419.00 17420.00 16930.00 22222.00
16419.00 17420.00 16764.00 21774.00
16041.00 17020.00 16618.00 21486.00
16141.00 17125.00 16927.00 21699.00
16952.00 17987.00 18080.00 23274.00
18409.00 19532.00 19819.00 25404.00
18709.00 19850.00 20103.00 25660.00
19109.00 20275.00 20820.00 26507.00
20110.00 21337.00 21968.00 27658.00
19032.00 20194.00 21541.00 27312.00
20566.00 21821.00 23278.00 29396.00
21134.00 22423.00 23902.00 30222.00
21322.00 22623.00 24162.00 31128.00
21779.00 23107.00 24959.00 32034.00
02/2004 21716.00 23038.00 25373.00 32718.00
The above illustration assumes a $10,000 investment made on March 1, 1994, and
reinvestment of income and capital gains distributions. In addition, the graph
and table do not reflect a deduction of the taxes that a shareholder would pay
on fund distributions or the redemption of fund shares. The Russell MidCap Index
is an unmanaged index that measures the performance of the 800 smallest
companies in the Russell 1000 Index, as ranked by total market capitalization.
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 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 02/29/04 (%)
SHARE CLASS A B C D G T Z
- ----------------------------------------------------------------------------------------------------------------------------
INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 11/01/02 11/01/02 11/20/85
- ----------------------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- ----------------------------------------------------------------------------------------------------------------------------
6-month (cumulative) 7.96 1.75 7.56 2.56 7.73 6.73 7.62 5.55 7.40 2.40 8.06 1.82 8.26
- ----------------------------------------------------------------------------------------------------------------------------
1-year 35.34 27.56 34.31 29.31 34.51 33.51 34.37 32.04 34.00 29.00 35.50 27.72 36.03
- ----------------------------------------------------------------------------------------------------------------------------
5-year 6.33 5.08 6.13 5.84 6.16 6.16 6.14 5.93 6.09 5.66 6.39 5.13 6.49
- ----------------------------------------------------------------------------------------------------------------------------
10-year 8.70 8.06 8.60 8.60 8.61 8.61 8.60 8.49 8.58 8.58 8.73 8.09 8.78
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/03 (%)
SHARE CLASS A B C D G T Z
- --------------------------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- --------------------------------------------------------------------------------------------------------------------------------
6-month (cumulative) 13.96 7.41 13.48 8.48 13.60 12.60 13.55 11.43 13.43 8.43 14.00 7.43 14.21
- --------------------------------------------------------------------------------------------------------------------------------
1-year 29.86 22.39 28.86 23.86 29.00 28.00 28.86 26.58 28.64 23.64 29.95 22.50 30.43
- --------------------------------------------------------------------------------------------------------------------------------
5-year 3.71 2.49 3.54 3.26 3.56 3.56 3.54 3.33 3.52 3.10 3.76 2.54 3.83
- --------------------------------------------------------------------------------------------------------------------------------
10-year 8.98 8.33 8.89 8.89 8.90 8.90 8.89 8.77 8.87 8.87 9.00 8.36 9.04
All results shown assume reinvestment of distributions. 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% and a CDSC of 1% that is applied to shares sold
within the first year after they are purchased. Class C has a CDSC of 1% which
is applicable for the first year only. For class G shares, the CDSC for the
holding period after purchase is as follows: through first year - 5%, second
year - 4%, third year - 4%, fourth year - 4%, fifth year - 3%, sixth year - 2%,
seventh year - 1%, thereafter - 0%. For class T shares, the "with sales charge"
returns include the maximum 5.75% charge. Performance for different share
classes will vary based on differences in sales charges and fees associated with
each class.
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, the 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. The returns for
class C include the returns of class B prior to 10/13/03, the date on which
class C was initially offered by the fund. The returns shown for class C also
include the performance of class Z prior to the inception of class B (11/01/02).
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, C, D, G and T would have been lower.
11
Sidebar:
SUMMARY
o FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 29, 2004, THE FUND'S CLASS A SHARES
RETURNED 7.96% WITHOUT SALES CHARGE.
o THE FUND UNDERPERFORMED ITS BENCHMARKS, THE RUSSELL MIDCAP GROWTH INDEX AND
RUSSELL MIDCAP INDEX, AS WELL AS ITS PEER GROUP, THE LIPPER MIDCAP GROWTH
FUNDS CATEGORY.
o STOCK SELECTION IN HEALTH CARE AND AN EMPHASIS ON HIGHER QUALITY TECHNOLOGY
STOCKS, WHICH UNDERPERFORMED MORE SPECULATIVE TECHNOLOGY ISSUES, WERE THE
PRIMARY REASONS THE FUND LAGGED ITS BENCHMARKS.
[Illustration of 3 arrows pointing up]
RUSSELL RUSSELL
CLASS A MIDCAP MIDCAP
SHARES GROWTH INDEX INDEX
7.96% 15.52% 18.31%
OBJECTIVE
Seeks significant capital appreciation
TOTAL NET ASSETS
$1,070.3 million
NET ASSET VALUE PER SHARE
AS OF 02/29/04 ($)
Class A 19.53
---------------------------
Class B 19.34
---------------------------
Class C 19.37
---------------------------
Class D 19.35
---------------------------
Class G 19.31
---------------------------
Class T 19.58
---------------------------
Class Z 19.67
PORTFOLIO MANAGER'S REPORT _____________________________________________________
COLUMBIA MID CAP GROWTH FUND
For the six-month period ended February 29, 2004, Columbia Mid Cap Growth Fund
class A shares returned 7.96% without sales charge. The fund underperformed both
the Russell MidCap Growth Index, which returned 15.52%, and the Russell MidCap
Index, which returned 18.31% during the same period. The fund also
underperformed its peer group. The Lipper MidCap Growth Funds Category average
was 11.75%. 1 Small-cap and mid-cap stocks rose more than large-cap stocks
because investors believed smaller companies had more to gain in an improving
economy. The fund was the beneficiary of this positive investor sentiment.
However, it trailed its benchmark indices primarily because of stock selection
in health care and because it focused on higher quality technology stocks, which
underperformed more speculative technology issues. We believe these are also the
principal reasons that the fund underperformed its peers.
HEALTH CARE HOLDINGS DID POORLY
The fund's health care stocks underperformed over the past six months. We
eliminated our investment in Biovail, but not before a major earnings
disappointment brought the stock price down sharply. Investors lost confidence
in the stock after a truck accident destroyed a large shipment of one of the
company's primary drug products and questions were raised about their accounting
practices. The fund's performance was also hurt by its position in Gilead
Sciences, which declined sharply during the period. The company was hurt by
declining sales prospects for the biotech firm's flagship product, the anti-HIV
drug Viread. Yet, several high-quality health care stocks made positive
contributions to the fund, including DaVita, a dialysis services company; IVAX,
a pharmaceuticals company; and Varian Medical Systems, a medical equipment
company.
INVESTORS ATTRACTED TO SPECULATIVE TECHNOLOGY NAMES
Although the fund was overweight in technology, it did not participate in some
of the strong gains by speculative technology companies because of its emphasis
on high-quality technology companies with established earnings. Still, the
fund's bottom-up research process did help us identify companies with
above-average earnings growth and reasonable valuations, such as Fairchild
Semiconductor International, Novell and AU Optronics. All three stocks made
positive contributions to the fund's performance. We sold AU Optronics because
it reached our price target.
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.
12
Sidebar:
TOP 5 SECTORS AS OF 02/29/04 (%)
Information technology 39.2
-----------------------------------------
Health care 20.4
-----------------------------------------
Consumer discretionary 17.5
-----------------------------------------
Industrials 10.6
-----------------------------------------
Energy 6.5
TOP 10 HOLDINGS AS OF 02/29/04 (%)
Univision Communications 2.1
-----------------------------------------
Comverse Technology 1.9
-----------------------------------------
Microchip Technology 1.8
-----------------------------------------
Autoliv 1.7
-----------------------------------------
Caremark Rx 1.7
-----------------------------------------
Amphenol 1.7
-----------------------------------------
American Power Conversion 1.6
-----------------------------------------
Agilent Technologies 1.6
-----------------------------------------
Amdocs 1.6
-----------------------------------------
Fair Isaac 1.6
HOLDINGS DISCUSSED IN THIS REPORT AS OF 02/29/04 (%)
Gilead Sciences 0.4
-----------------------------------------
DaVita 1.5
-----------------------------------------
IVAX 0.9
-----------------------------------------
Varian Medical Systems 1.2
-----------------------------------------
Fairchild Semiconductor International 1.2
-----------------------------------------
Novell 0.8
-----------------------------------------
XTO Energy 1.0
-----------------------------------------
National-Oilwell 1.2
Your fund is actively managed and the composition of its portfolio will change
over time. Information provided is calculated as a percentage of net assets.
________________________________________________________________________________
COLUMBIA MID CAP GROWTH FUND
ENERGY PRODUCERS AND SERVICE COMPANIES IN FAVOR
The fund's above-average weight in energy investments slightly hurt performance,
because the energy portion of the Russell MidCap Growth Index lagged the overall
index return. However, energy made a positive contribution to the fund's
performance relative to the index because we were invested in the types of
companies that did the best within the sector--energy producers and energy
service companies. Energy, in general, benefited as cold weather and global
economic growth resulted in higher demand for oil and gas. But energy producers
and service companies were the primary beneficiaries, as higher demand resulted
in higher commodity prices and the expectation that drilling activity would be
more attractive. These factors favored investments such as XTO Energy and
National-Oilwell, which were strong performers for the fund.
POSITIVE OUTLOOK FOR ECONOMY AND STOCK MARKET
The fund's positioning at the end of the period reflects our outlook for
sustained economic growth. We continue to believe that selected technology and
energy companies have the potential to benefit from an improving economy.
However, we also believe that investors are likely to seek strong revenue and
earnings growth to justify higher stock prices after a year of strong returns,
particularly from smaller company stocks. And although we believe that many
companies have the potential to generate attractive revenue growth, it is
unlikely to be enough to fuel another year of returns as high as 2003. As a
result, we are seeking to reduce the overall risk exposure of the portfolio by
focusing on companies with reasonable valuations as well as good growth
prospects.
Photo of Richard J. Johnson
Richard J. Johnson, CFA, has managed Columbia Mid
Cap Growth Fund since October 1998 and has been
with the advisor and its predecessors since 1994.
/s/ Richard J. Johnson
An investment in the fund offers the potential for long-term growth, but also
involves certain risks, including stock market fluctuations due to economic and
business developments. Mid-cap stocks can present special risks including
greater price volatility than stocks of larger, more established companies.
13
Sidebar:
PERFORMANCE OF A $10,000 INVESTMENT 10/01/96 - 02/29/04 ($)
SALES CHARGE WITHOUT
-----------------------
Class Z $24,432
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 the original cost. Please visit www.columbiafunds.com for
daily and most recent month-end performance updates.
PERFORMANCE INFORMATION ________________________________________________________
COLUMBIA SMALL CAP GROWTH FUND
VALUE OF A $10,000 INVESTMENT 10/01/96 - 02/29/04
(MOUNTAIN CHART)
CLASS Z
SHARES
WITHOUT RUSSELL 2000 RUSSELL 2000
SALES CHARGE INDEX GROWTH INDEX
------------ ----------- ------------
10/1996 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
21273.00 15794.00 10958.00
20624.00 15502.00 10681.00
22670.00 16804.00 11604.00
23191.00 17400.00 11982.00
23142.00 17753.00 12036.00
24519.00 18524.00 12668.00
24432.00 18695.00 12652.00
23142.00
24519.00
02/2004 24432.00
The above illustration assumes a $10,000 investment made on October 1, 1996, and
reinvestment of income and capital gains distributions. In addition, the graph
and table do not reflect a deduction of the taxes that a shareholder would pay
on fund distributions or the redemption of fund shares. 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 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, 1996.
AVERAGE ANNUAL TOTAL RETURN AS OF 02/29/04 (%)
SHARE CLASS Z
-----------------------------------
INCEPTION 10/01/96
-----------------------------------
SALES CHARGE WITHOUT
-----------------------------------
6-month (cumulative) 14.85
-----------------------------------
1-year 55.19
-----------------------------------
5-year 12.67
-----------------------------------
Life 12.81
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/03 (%)
SHARE CLASS Z
-----------------------------------
SALES CHARGE WITHOUT
-----------------------------------
6-month (cumulative) 19.15
-----------------------------------
1-Year 44.29
-----------------------------------
5-Year 8.90
-----------------------------------
Life 12.27
All results shown assume reinvestment of distributions.
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.
14
SUMMARY
o FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 29, 2004, THE FUND'S CLASS Z SHARES
RETURNED 14.85% WITHOUT SALES CHARGE.
o THE FUND'S RETURN LAGGED THAT OF ITS BENCHMARKS, THE RUSSELL 2000 GROWTH
INDEX AND THE RUSSELL 2000 INDEX, BUT IT WAS HIGHER THAN THE RETURN OF ITS
PEER GROUP, THE LIPPER SMALL-CAP GROWTH FUNDS CATEGORY.
o THE FUND PROVIDED A STRONG ABSOLUTE RETURN FOR THE PERIOD, BUT ITS
PERFORMANCE FELL SHORT OF ITS BENCHMARKS PRIMARILY BECAUSE THE MANAGER
EMPHASIZED COMPANIES WITH CURRENT EARNINGS WHILE THE BEST PERFORMANCE DURING
THE PERIOD WAS GENERATED BY MORE SPECULATIVE COMPANIES.
[Illustration of 3 arrows pointing up]
RUSSELL 2000
CLASS Z GROWTH RUSSELL 2000
SHARES INDEX INDEX
14.85% 15.42% 18.34%
OBJECTIVE
Seeks capital appreciation
TOTAL NET ASSETS
$784.0 million
NET ASSET VALUE PER SHARE AS OF 02/29/04 ($)
Class Z 24.83
PORTFOLIO MANAGER'S REPORT _____________________________________________________
COLUMBIA SMALL CAP GROWTH FUND
For the six-month period ended February 29, 2004, Columbia Small Cap Growth Fund
class Z shares returned 14.85% without sales charge. That was less than the
return of the Russell 2000 Growth Index, which was 15.42%, and the Russell 2000
Index, which was 18.34%, during the same period. However, it was higher than the
Lipper Small-Cap Growth Funds Category average, which was 14.45%.1 The fund
benefited from its emphasis on technology stocks, which posted strong gains
during the period, and from stock selection in the energy sector. However, our
emphasis on companies with current earnings hurt our performance relative to the
indices, since by far the best performance during the period was generated by
more speculative companies. Investors were far more willing to take on risk as
war worries lessened and economic recovery came into focus.
SMALL CAP STOCKS BENEFITED IN IMPROVING ECONOMY
With the end of major military action in Iraq and an economy on the mend, the US
stock market moved higher during the six-month reporting period. Small caps were
the greatest beneficiaries of the trend. Investors favored small caps on the
expectation that they had more to gain in an improving economy. And, they
favored sectors that were likely to benefit from a stronger economy. The fund
was positioned to capitalize on both trends.
STRONGEST GAINS FROM TECHNOLOGY STOCKS
During this six-month period, the fund's strongest gains came from many of the
same technology stocks that had been hit hard during the three-year bear market.
Technology companies benefited from stronger demand as the economy improved.
Among the fund's technology holdings, Cognizant Technology Solutions, Aspect
Communications and F5 Networks did well.
HIGH DEMAND FOR OIL AND GAS BOOSTS ENERGY SECTOR
The fund's above-average weight in energy investments was a slight drag on
performance, because the energy portion of the Russell 2000 Growth Index
slightly trailed the overall index return. However, energy made a positive
contribution to the fund's performance relative to the index because we were
invested in the types of companies that did the best within the sector--energy
producers and energy service companies. Energy, in general, benefited as cold
weather and global economic growth resulted in higher demand for oil and gas.
But energy producers and
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.
15
Sidebar:
TOP 5 SECTORS AS OF 02/29/04 (%)
Information technology 40.3
-------------------------------------
Health care 15.5
-------------------------------------
Consumer discretionary 14.6
-------------------------------------
Industrials 13.3
-------------------------------------
Energy 6.1
TOP 10 HOLDINGS AS OF 02/29/04 (%)
Amphenol 2.4
-------------------------------------
Education Management 1.9
-------------------------------------
Fair Isaac 1.9
-------------------------------------
AVX 1.7
-------------------------------------
Autoliv 1.7
-------------------------------------
Electronics for Imaging 1.6
-------------------------------------
Polycom 1.5
-------------------------------------
Henry Schein 1.5
-------------------------------------
DaVita 1.4
-------------------------------------
Renal Care Group 1.4
HOLDINGS DISCUSSED IN THIS REPORT AS OF 02/29/04 (%)
Cognizant Technology Solutions 0.7
-------------------------------------
Aspect Communications 1.0
-------------------------------------
F5 Networks 0.9
-------------------------------------
XTO Energy 1.3
-------------------------------------
National-Oilwell 1.2
-------------------------------------
Chesapeake Energy 0.5
Your fund is actively managed and the composition of its portfolio will change
over time. Information provided is calculated as a percentage of net assets.
________________________________________________________________________________
COLUMBIA SMALL CAP GROWTH FUND
service companies were the primary beneficiaries of these trends, as higher
demand resulted in higher commodity prices and the expectation that drilling
activity would be more attractive. These factors favored investments such as XTO
Energy, National-Oilwell and Chesapeake Energy, which were strong performers for
the fund.
STRONG RETURNS FROM SPECULATIVE HEALTH CARE STOCKS
In the health care sector, the fund was hurt by its emphasis on high-quality
companies with track records of consistent earnings growth during a period when
more speculative companies were the sector's top performers. However, we believe
that our strategy will benefit the fund in the long-term, and we have stayed
with it. We were also hurt by our position in First Health Group, which declined
sharply in the face of strong competition from major health maintenance
organizations. We sold the stock.
POSITIONED FOR A RECOVERING ECONOMY
At the end of the period, the fund was positioned to take advantage of an
improving economy. We maintained our emphasis on technology companies, because
their prospects are closely linked to economic growth. However, in light of the
strong run-up in small-cap stock prices, we do not expect returns in 2004 to
match the returns of 2003. We believe that investors are likely to become more
selective--and more demanding of revenue and earnings growth to justify higher
stock prices. As a result, we have focused on companies with reasonable
valuations as well as growth prospects in order to manage the fund's overall
risk exposure.
Photo of Richard J. Johnson
Richard J. Johnson, CFA, has managed Columbia
Small Cap Growth Fund since October 1996 and has
been with the advisor and its predecessors
since 1994.
/s/ Richard J. Johnson
An investment in the fund offers the potential for long-term growth, but also
involves certain risks, including stock market fluctuations due to economic and
business developments. Investing in small-cap stocks may present special risks,
including possible illiquidity and greater price volatility than stocks of
larger, more established companies.
16
Sidebar:
PERFORMANCE OF A $10,000 INVESTMENT 04/01/94 - 02/29/04 ($)
SALES CHARGE WITHOUT WITH
-----------------------------------
Class A 35,003 32,997
-----------------------------------
Class B 34,687 34,687
-----------------------------------
Class C 34,684 34,684
-----------------------------------
Class D 34,711 34,368
-----------------------------------
Class Z 35,222 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 the original cost. Please visit www.columbiafunds.com for
daily and most recent month-end performance updates.
PERFORMANCE INFORMATION_________________________________________________________
COLUMBIA REAL ESTATE EQUITY FUND
VALUE OF A $10,000 INVESTMENT 04/01/94 - 02/29/04
(MOUNTAIN CHART)
CLASS A CLASS A
SHARES SHARES
WITHOUT WITH NAREIT
SALES CHARGE SALES CHARGE INDEX
------------ ------------ -----
04/1994 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
29338.00 27651.00 26534.00
30098.00 28367.00 27436.00
30534.00 28779.00 27933.00
31817.00 29987.00 29150.00
33093.00 31190.00 30171.00
34135.00 32172.00 31474.00
02/2004 35003.00 32997.00 32030.00
The above illustration assumes a $10,000 investment made on April 1, 1994, and
reinvestment of income and capital gains distributions. In addition, the graph
and table do not reflect a deduction of the taxes that a shareholder would pay
on fund distributions or the redemption of fund shares. 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 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 March 31, 1994.
AVERAGE ANNUAL TOTAL RETURN AS OF 02/29/04 (%)
SHARE CLASS A B C D Z
- -------------------------------------------------------------------------------------------------------
INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 04/01/94
- -------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- -------------------------------------------------------------------------------------------------------
6-month (cumulative) 19.28 12.42 18.86 13.86 18.85 17.85 18.93 16.76 19.46
- -------------------------------------------------------------------------------------------------------
1-year 44.96 36.63 43.84 38.84 43.82 42.82 44.02 41.56 45.58
- -------------------------------------------------------------------------------------------------------
5-year 14.82 13.46 14.61 14.38 14.61 14.61 14.63 14.39 14.96
- -------------------------------------------------------------------------------------------------------
Life 13.47 12.80 13.37 13.37 13.37 13.37 13.38 13.26 13.54
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/03 (%)
SHARE CLASS A B C D Z
- -----------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- -----------------------------------------------------------------------------------------------------
6-month (cumulative) 20.72 13.78 20.28 15.28 20.26 19.26 20.29 18.09 20.86
- -----------------------------------------------------------------------------------------------------
1-year 34.93 27.17 33.91 28.91 33.90 32.90 33.95 31.62 35.47
- -----------------------------------------------------------------------------------------------------
5-year 12.98 11.65 12.80 12.55 12.80 12.80 12.81 12.58 13.10
- -----------------------------------------------------------------------------------------------------
Life 13.06 12.38 12.97 12.97 12.97 12.97 12.97 12.86 13.12
All results shown assume reinvestment of distributions. The "with sales charge"
returns include the maximum 5.75% charge for class A shares and 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%, and thereafter - 0%. Class C
has a CDSC of 1% which is applicable for the first year only. Class D has a
sales charge of 1% and 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, the 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. The returns for class
C include the returns of class B prior to 10/13/03, the date on which class C
was initially offered by the fund. The returns shown for class C also include
the performance of class Z prior to the inception of class B (11/01/02). 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, C and D would have been lower.
17
Sidebar:
SUMMARY
o FOR THE SIX-MONTH PERIOD THAT ENDED FEBRUARY 29, 2004, THE FUND'S CLASS A
SHARES RETURNED 19.28% WITHOUT SALES CHARGE.
o THE FUND'S RETURN WAS LOWER THAN ITS BENCHMARK, THE NAREIT INDEX, AND LOWER
THAN THE AVERAGE RETURN OF THE LIPPER REAL ESTATE FUNDS CATEGORY.
o THE FUND'S INVESTMENTS IN PAPER AND FOREST PRODUCTS SECURITIES WERE LARGELY
RESPONSIBLE FOR ITS RELATIVE UNDERPERFORMANCE DURING THE PERIOD, ALTHOUGH
THESE HOLDINGS REBOUNDED LATE IN THE PERIOD.
[Illustration of 2 arrows pointing up]
CLASS A SHARES NAREIT INDEX
19.28% 20.69%
OBJECTIVE
Seeks capital appreciation and
above-average income
TOTAL NET ASSETS
$1,088.0 million
NET ASSET VALUE PER SHARE AS OF 02/29/04 ($)
Class A 24.49
---------------------------
Class B 24.50
---------------------------
Class C 24.49
---------------------------
Class D 24.50
---------------------------
Class Z 24.51
DISTRIBUTIONS DECLARED PER SHARE 09/01/03 - 02/29/04 ($)
Class A 0.54
---------------------------
Class B 0.45
---------------------------
Class C 0.28
---------------------------
Class D 0.46
---------------------------
Class Z 0.58
PORTFOLIO MANAGER'S REPORT _____________________________________________________
COLUMBIA REAL ESTATE EQUITY FUND
For the six-month period ended February 29, 2004, Columbia Real Estate Equity
Fund class A shares returned 19.28% without sales charge. Although the fund
generated a strong absolute return, it was slightly less than the 20.69% gain of
its benchmark, the NAREIT Index, a common measure of real estate securities'
performance. The fund also underperformed the Lipper Real Estate Funds Category
average, which was 20.37%.1 The fund's substantial allocation to paper and
forest product securities and a relatively light exposure to health care REITs,
which were one of the better-performing sectors in the index, were a slight drag
on performance.
SECTOR ALLOCATION DECISIONS AIDED RESULTS
Average vacancy rates in major office markets were significantly higher than
their historical average during the period. Similarly, apartment vacancy rates
increased as weaker job growth decreased demand. We maintained an underweight
position in both office and apartment REITs, which benefited the fund's return.
In addition, our investments in cyclically-oriented sectors of the real estate
markets, including higher-quality regional malls and shopping centers, and
industrial and lodging companies, were solid performers. We did not participate
in the rally in health care REITs. These companies rarely meet our selection
criteria because their cash flow streams are dependent on government policy.
CAPITAL INFLOWS BOOSTED VALUATIONS
REITs continued to attract sizeable inflows of investor capital over the past
six months, in many cases driving prices up to premium levels. As a result, we
maintained the fund's defensive positioning. We continued to add to our
investment in non-real-estate related companies, which accounted for 17% of the
fund's net assets by the end of the period. (The fund's investment policy
permits us to hold up to 20% of assets in non-real-estate related companies.) We
like the paper and forest-products sectors because we believe they are early in
their product pricing cycles and that cash flows are set to grow strongly. These
stocks, many of which were disappointments when we first purchased them in the
fourth quarter of 2002 and in early 2003, recovered nicely as manufacturing
activity rebounded near the end of the period.
We also added a relatively new investment vehicle called an income deposit
security (IDS) by initiating a small position in Volume Services America
Holdings, a national operator of concessions at stadiums and convention centers.
Popular in Canada, an IDS combines a share of dividend-paying common stock along
with an interest in corporate subordinated debt. The security pays both a
dividend, which is now taxed at the lower dividend tax rate, and interest, which
is taxed at the
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.
18
Sidebar:
TOP 5 SECTORS AS OF 02/29/04 (%)
Retail 28.3
------------------------------------------
Industrial 26.2
------------------------------------------
Office 14.4
------------------------------------------
Residential 8.0
------------------------------------------
Lodging 5.5
TOP 10 HOLDINGS AS OF 02/29/04 (%)
Simon Property Group 6.0
-----------------------------------------
General Growth Properties 5.3
-----------------------------------------
iStar Financial 4.4
-----------------------------------------
ProLogis 4.2
-----------------------------------------
Bowater 3.9
-----------------------------------------
Alexandria Real Estate Equities 3.7
-----------------------------------------
Cousins Properties 3.7
-----------------------------------------
Rouse 3.6
-----------------------------------------
Regency Centers 3.5
-----------------------------------------
Duke Realty 3.4
HOLDINGS DISCUSSED IN THIS REPORT AS OF 02/29/04 (%)
Volume Services America Holdings 1.0
Your fund is actively managed and the composition of its portfolio will change
over time. Information provided is calculated as a percentage of net assets.
________________________________________________________________________________
COLUMBIA REAL ESTATE EQUITY FUND
ordinary income tax rate. We purchased the security for its income
potential--the yield was approximately 9% at the end of the period. We expect to
add to our IDS allocation on a selective basis.
RISKS MAY RISE FOR REITS
Strong performance by REITs during the reporting period continued to be driven
by investors seeking an alternative to lower-yielding fixed-income sectors.
However, REITs face a number of challenges. Recent tax legislation may cause
REITs to look relatively less attractive because, generally speaking, the
dividends they pay are taxed at a higher rate than other dividends. Real estate
stock valuations have been high for more than a year now. Although we were early
in positioning the fund more defensively, we believe the portfolio's defensive
positioning is appropriate for this environment. We believe that the environment
for industrial REITs is likely to improve more quickly than for apartment and
office REITs, and that expectation is reflected in our allocations at the end of
the period. Over the long term, we believe that the fund's investments have the
potential to benefit from the economic recovery that has been underway for
nearly a year.
David Jellison has managed the fund since 1994
and has been with the advisor and its
predecessors since 1992.
/s/ David Jellison
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.
19
Sidebar:
PERFORMANCE OF A $10,000 INVESTMENT 11/09/00 - 02/29/04 ($)
SALES CHARGE WITHOUT WITH
----------------------------------
Class A 7,353 6,931
----------------------------------
Class B 7,273 7,055
----------------------------------
Class C 7,273 7,273
----------------------------------
Class D 7,303 7,231
----------------------------------
Class Z 7,393 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 the original cost. Please visit www.columbiafunds.com for
daily and most recent month-end performance updates.
PERFORMANCE INFORMATION ________________________________________________________
COLUMBIA TECHNOLOGY FUND
VALUE OF A $10,000 INVESTMENT 11/09/00 - 02/29/04
(MOUNTAIN CHART)
CLASS A CLASS A MERRILL LYNCH
SHARES SHARES 100
WITHOUT WITH TECHNOLOGY
SALES CHARGE SALES CHARGE INDEX
------------ ------------ -------------
11/2000 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
5907.00 5568.00 4353.00
5977.00 5634.00 4204.00
6727.00 6340.00 4711.00
7066.00 6660.00 4862.00
6977.00 6576.00 4871.00
7496.00 7065.00 5182.00
02/2004 7353.00 6931.00 5085.00
The above illustration assumes a $10,000 investment made on November 9, 2000,
and reinvestment of income and capital gains distributions. In addition, the
graph and table do not reflect a deduction of the taxes that a shareholder would
pay on fund distributions or the redemption of fund shares. 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 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 November 9, 2000.
AVERAGE ANNUAL TOTAL RETURN AS OF 02/29/04 (%)
SHARE CLASS A B C D Z
- --------------------------------------------------------------------------------------------------------------
INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 11/09/00
- --------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- --------------------------------------------------------------------------------------------------------------
6-month (cumulative) 24.53 17.37 24.23 19.23 24.23 23.23 24.32 22.09 24.79
- --------------------------------------------------------------------------------------------------------------
1-year 93.18 82.07 91.58 86.58 91.58 90.58 92.37 89.45 93.72
- --------------------------------------------------------------------------------------------------------------
Life -8.89 -10.50 -9.19 -10.02 -9.19 -9.19 -9.07 -9.35 -8.74
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/03 (%)
SHARE CLASS A B C D Z
- -------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- -------------------------------------------------------------------------------------------------------
6-month (cumulative) 39.88 31.84 39.80 34.80 39.80 38.80 39.56 37.17 40.12
- -------------------------------------------------------------------------------------------------------
1-year 84.17 73.58 83.07 78.07 83.07 82.07 83.86 81.03 85.22
- -------------------------------------------------------------------------------------------------------
Life -10.84 -12.50 -11.08 -11.94 -11.08 -11.08 -10.96 -11.24 -10.68
All results shown assume reinvestment of distributions. The "with sales charge"
returns include the maximum 5.75% charge for class A shares and 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%, and thereafter - 0%. Class C
has a CDSC of 1% which is applicable for the first year only. Class D has a
sales charge of 1% and 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, the 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. The returns for class
C include the returns of class B prior to 10/13/03, the date on which class C
was initially offered by the fund. The returns shown for class C also include
the performance of class Z prior to the inception of class B (11/01/02). 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, C and D would have been lower.
20
Sidebar:
SUMMARY
o FOR THE SIX-MONTH PERIOD THAT ENDED FEBRUARY 29, 2004, THE FUND'S CLASS A
SHARES RETURNED 24.53% WITHOUT SALES CHARGE.
o THE FUND'S RETURN WAS SIGNIFICANTLY BETTER THAN BOTH THE MERRILL LYNCH 100
TECHNOLOGY INDEX AND THE LIPPER SCIENCE & Technology Funds Category average.
o THE FUND'S EMPHASIS ON SEMICONDUCTOR AND WIRELESS COMPANIES, THE TWO
TOP-PERFORMING INDUSTRIES FOR THE PERIOD, CONTRIBUTED TO ITS STRONG
PERFORMANCE.
[Illustration of 2 arrows pointing up]
MERRILL LYNCH 100
CLASS A SHARES TECHNOLOGY INDEX
24.53% 16.80%
OBJECTIVE
Seeks capital appreciation
TOTAL NET ASSETS
$40.3 million
NET ASSET VALUE PER SHARE AS OF 02/29/04 ($)
Class A 7.36
--------------------------
Class B 7.28
--------------------------
Class C 7.28
--------------------------
Class D 7.31
--------------------------
Class Z 7.40
PORTFOLIO MANAGERS' REPORT _____________________________________________________
COLUMBIA TECHNOLOGY FUND
For the six-month period ended February 29, 2004, Columbia Technology Fund class
A shares returned 24.53% without sales charge. The fund outpaced its benchmark,
the Merrill Lynch 100 Technology Index, which returned 16.80% for the same
period. It also surpassed the Lipper Science & Technology Funds Category average
of 13.33%.1 The fund's heavy emphasis on semiconductor and wireless
companies--the two top-performing industries for the period--helped performance.
HIGH RETURNS IN A RISING MARKET
A growing economy in all areas except job creation helped propel technology
stocks during the period. The largest gains came in the fourth quarter of 2003
and January, boosted by consumer purchases during the holidays and year-end
corporate spending. In many cases, cost cutting efforts implemented during the
tech downturn helped profitability as market conditions improved. In February
the market was weaker, causing the fund to give back some of its gains.
DIVERSIFICATION--AND A FEW BIG BETS
Our strategy remained fairly consistent during the period, as we emphasized
semiconductor and wireless companies. We pared back our exposure to Internet
stocks and tended to favor larger, more stable companies. Of the approximately
120 stocks in the portfolio, we concentrated on those about which we felt
particularly confident, which worked to our advantage during this period.
FOCUS ON SEMICONDUCTORS AND WIRELESS PAID OFF
During the period we established a large position--over 6% of net assets--in
semiconductor manufacturer ZiLOG, which makes microcontrollers. Its price had
been beaten down, but a new management team, cost cutting measures and a more
focused strategy brought it back to life. It was one of our best performers. In
the wireless area, we did well with Millicom International Cellular, a cellular
service provider in developing countries such as Vietnam. Other international
stocks that helped performance were American Tower and Crown Castle
International, companies that own and operate communications towers in the
United States, the United Kingdom and in the fast growing markets of Mexico and
Brazil.
OPPORTUNITIES IN SOFTWARE, OUTSOURCING
Another theme we pursued was the growing trend for businesses--particularly
outside the United States--to adopt the Linux operating
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.
21
Sidebar:
TOP 5 SECTORS AS OF 02/29/04 (%)
Semiconductors & semiconductor
equipment 31.7
-----------------------------------------
Communications equipment 16.4
-----------------------------------------
Software 10.3
-----------------------------------------
Wireless telecommunication services 7.8
-----------------------------------------
IT services 6.3
TOP 10 HOLDINGS AS OF 02/29/04 (%)
ZiLOG 6.2
-----------------------------------------
Formfactor 5.0
-----------------------------------------
ECI Telecom 3.8
-----------------------------------------
Samsung Electronics 3.5
-----------------------------------------
Millicom International Cellular 2.4
-----------------------------------------
Marvell Technology Group 2.4
-----------------------------------------
Vimpelcom 1.9
-----------------------------------------
XM Satellite Radio Holdings 1.8
-----------------------------------------
Telefonaktiebolaget LM Ericsson 1.8
-----------------------------------------
Agilent Technologies 1.7
HOLDINGS DISCUSSED IN THIS REPORT AS OF 02/29/04 (%)
ZiLOG 6.2
-----------------------------------------
Millicom International Cellular 2.4
-----------------------------------------
American Tower 0.5
-----------------------------------------
Crown Castle International 0.9
-----------------------------------------
Microsoft 0.9
-----------------------------------------
Novell 1.1
-----------------------------------------
Cognizant Technology Solutions 1.6
Your fund is actively managed and the composition of its portfolio will change
over time. Information provided is calculated as a percentage of net assets.
________________________________________________________________________________
COLUMBIA TECHNOLOGY FUND
system, a major competitor to market leader Microsoft. Software company Novell
was already in the portfolio, but we added to our stake when it became clear
that the firm was repositioning itself as a major Linux player. Toward the end
of the period we took some profits, but Novell remained one of our largest
software holdings. We also initiated a successful position in Cognizant
Technology Solutions in an effort to benefit from the outsourcing trend.
Cognizant specializes in application maintenance services and software design
with development centers in India, Ireland and the United States.
STILL ROOM FOR GROWTH
We believe there are plenty of opportunities ahead for technology stocks.
Despite concerns about low job growth, we see underlying strengths in the
economy that should benefit tech companies. Valuations have corrected themselves
to healthy levels, but still with room for growth. Moving forward, we will
continue to seek out investment opportunities that focus on product cycle
themes, such as broadband and Linux, which we believe have the potential for
above-average growth under a variety of market conditions.
Wayne Collette has co-managed the Columbia
Technology Fund since June 2002 and has been with
the advisor and its predecessors since 2001.
/s/ Wayne Collette
Theodore Wendell has co-managed the fund since
June 2002 and has been with the advisor and its
predecessors since 2000.
/s/ Theodore Wendell
Trent Nevills has co-managed the fund since August
2003 and has been with the advisor since 2003.
/s/ Trent Nevills
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.
22
Sidebar:
PERFORMANCE OF A $10,000 INVESTMENT 11/09/00 - 02/29/04 ($)
SALES CHARGE WITHOUT WITH
-----------------------------------
Class A 18,938 17,852
-----------------------------------
Class B 18,730 18,430
-----------------------------------
Class C 18,730 18,730
-----------------------------------
Class D 18,710 18,525
-----------------------------------
Class Z 19,009 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 the original cost. Please visit www.columbiafunds.com for
daily and most recent month-end performance updates.
PERFORMANCE INFORMATION ________________________________________________________
COLUMBIA STRATEGIC INVESTOR FUND
VALUE OF A $10,000 INVESTMENT 11/09/00 - 02/29/04
(MOUNTAIN CHART)
CLASS A CLASS A
SHARES SHARES RUSSELL
WITHOUT WITH 3000
SALES SALES VALUE S&P 500
CHARGE CHARGE INDEX INDEX
------ ------ ----- -----
11/2000 10000.00 9425.00 10000.00 10000.00
9790.00 9227.00 9730.00 9399.00
11224.00 10579.00 10253.00 9445.00
12274.00 11568.00 10308.00 9780.00
12254.00 11549.00 10040.00 8888.00
11984.00 11295.00 9699.00 8325.00
12934.00 12190.00 10172.00 8972.00
13743.00 12953.00 10403.00 9032.00
13963.00 13160.00 10218.00 8812.00
13884.00 13085.00 10182.00 8726.00
13664.00 12879.00 9799.00 8180.00
12325.00 11616.00 9082.00 7519.00
12736.00 12003.00 9024.00 7662.00
13896.00 13097.00 9558.00 8250.00
14568.00 13731.00 9808.00 8323.00
14599.00 13759.00 9747.00 8201.00
14719.00 13872.00 9766.00 8043.00
15591.00 14695.00 10248.00 8345.00
15521.00 14629.00 9951.00 7840.00
15541.00 14648.00 9970.00 7782.00
14900.00 14043.00 9426.00 7228.00
13636.00 12852.00 8510.00 6665.00
13676.00 12889.00 8567.00 6708.00
12311.00 11603.00 7639.00 5979.00
12894.00 12153.00 8172.00 6505.00
14141.00 13328.00 8696.00 6888.00
13310.00 12544.00 8318.00 6484.00
12945.00 12201.00 8115.00 6314.00
12681.00 11952.00 7895.00 6219.00
12620.00 11894.00 7913.00 6279.00
13827.00 13032.00 8613.00 6797.00
14982.00 14121.00 9192.00 7155.00
15125.00 14255.00 9310.00 7247.00
15601.00 14704.00 9472.00 7374.00
16169.00 15239.00 9634.00 7518.00
16037.00 15114.00 9539.00 7438.00
16928.00 15955.00 10137.00 7859.00
17294.00 16299.00 10294.00 7928.00
18117.00 17075.00 10908.00 8344.00
18503.00 17439.00 11114.00 8497.00
02/2004 18938.00 17852.00 11353.00 8614.00
The above illustration assumes a $10,000 investment made on November 9, 2000,
and reinvestment of income and capital gains distributions. In addition, the
graph and table do not reflect a deduction of the taxes that a shareholder would
pay on fund distributions or the redemption of fund shares. The Russell 3000
Value Index measures the performance of those Russell 3000 Index companies with
lower price-to-book ratios and lower forecasted growth values. The stocks in
this index are also members of either the Russell 1000 Value or the Russell 2000
Value indices. The S&P 500 Index tracks the performance of 500
large-capitalization US stocks. 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 November 9, 2000.
AVERAGE ANNUAL TOTAL RETURN AS OF 02/29/04 (%)
SHARE CLASS A B C D Z
- ----------------------------------------------------------------------------------------------------------
INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 11/09/00
- ----------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- ----------------------------------------------------------------------------------------------------------
6-month (cumulative) 17.15 10.41 16.81 11.81 16.81 15.81 16.76 14.60 17.36
- ----------------------------------------------------------------------------------------------------------
1-year 49.36 40.77 48.20 43.20 48.20 47.20 48.04 45.56 49.68
- ----------------------------------------------------------------------------------------------------------
Life 21.32 19.17 20.92 20.33 20.92 20.92 20.88 20.51 21.46
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/03 (%)
SHARE CLASS A B C D Z
- -----------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- -----------------------------------------------------------------------------------------------------
6-month (cumulative) 19.79 12.90 19.43 14.43 19.43 18.43 19.38 17.20 20.01
- -----------------------------------------------------------------------------------------------------
1-year 36.12 28.29 35.11 30.11 35.11 34.11 34.86 32.52 36.45
- -----------------------------------------------------------------------------------------------------
Life 20.81 18.56 20.44 19.80 20.44 20.44 20.40 20.02 20.93
All results shown assume reinvestment of distributions. 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%, and thereafter - 0%. Class C
has a CDSC of 1% which is applicable for the first year only. Class D has a
sales charge of 1% and 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, the 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. The returns for class
C include the returns of class B prior to 10/13/03, the date on which class C
was initially offered by the fund. The returns shown for class C also include
the performance of class Z prior to the inception of class B (11/01/02). 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, C and D would have been lower.
23
Sidebar:
SUMMARY
o FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 29, 2004, THE FUND'S CLASS A SHARES
RETURNED 17.15% WITHOUT SALES CHARGE.
o THE FUND'S RETURN NEARLY MATCHED THAT OF ITS BENCHMARK, THE RUSSELL 3000
VALUE INDEX, AND BEAT BOTH THE S&P 500 AND THE LIPPER MULTI-CAP VALUE FUND
CATEGORY.
o THE FUND BENEFITED FROM INVESTMENTS IN CYCLICAL, SMALL-CAP, MID-CAP AND
EMERGING MARKET STOCKS, BUT GAVE UP SOME RETURN BECAUSE OF ITS SIZABLE CASH
POSITION.
[Illustration of 2 arrows pointing up]
RUSSELL 3000
CLASS A SHARES VALUE INDEX
17.15% 17.82%
OBJECTIVE
Seeks long-term growth
TOTAL NET ASSETS
$346.5 million
NET ASSET VALUE PER SHARE AS OF 02/29/04 ($)
Class A 18.61
---------------------------
Class B 18.48
---------------------------
Class C 18.48
---------------------------
Class D 18.46
---------------------------
Class Z 18.64
DISTRIBUTIONS DECLARED PER SHARE 09/01/03 - 02/29/04 ($)
Class A 0.07
---------------------------
Class B 0.00
---------------------------
Class C 0.00
---------------------------
Class D 0.00
---------------------------
Class Z 0.11
PORTFOLIO MANAGERS' REPORT _____________________________________________________
COLUMBIA STRATEGIC INVESTOR FUND
For the six-month period ended February 29, 2004, Columbia Strategic Investor
Fund class A shares returned 17.15% without sales charge. The fund came out
slightly behind the Russell 3000 Value Index, which returned 17.82%. A sizable
cash position, which resulted from selling stocks that had appreciated, held
back performance. However, the fund beat both the S&P 500 Index and the Lipper
Multi-Cap Value Fund Category average, which returned 14.59%, and 16.65%,
respectively.1 The fund benefited from a bias toward economically sensitive
stocks as well as small- and mid-cap names, many of which posted strong gains.
The fund's investments in the emerging markets of Eastern Europe, Russia and
Indonesia also boosted performance.
HEAVY CONCENTRATION IN CYCLICAL SECTORS
The fund began the period with an emphasis on semiconductor, industrial and
basic materials stocks that had the potential to benefit from an improving
economy. As corporate profits and economic growth strengthened early in the
six-month reporting period, these investments did well. Among our best gainers
were semiconductor manufacturers Atmel and Texas Instruments. We sold Atmel
because we believed the stock was fully valued. In addition, Polycom, a leader
in voice and video conferencing, benefited from increased demand as companies
continued to cut costs by reducing business travel. In the industrial sector,
Copart, an auctioneer of wrecked vehicles and auto parts that is expanding its
market potential by moving online, and Eaton, an engineering company, were also
strong performers. Materials producers, such as Dow Chemical and
Georgia-Pacific, a paper and pulp company, rallied nicely as demand and pricing
improved.
ATTRACTIVE VALUATIONS OVERSEAS, PARTICULARLY IN EMERGING MARKETS
We found many attractively valued stocks overseas. Some of the fund's best gains
came from cellular phone companies operating in emerging markets where current
usage is relatively low but growing rapidly. Standouts included Millicom
International Cellular, which is active in Vietnam, Pakistan and other emerging
markets, and Russia's VimpelCom. We also increased foreign holdings within the
financial sector because we believed they would hold up better if interest rates
rose in the United States. In that regard, we added to existing positions in
Japanese firms such as Mitsubishi Tokyo Financial Group and Nomura Holdings.
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.
24
Sidebar:
TOP 5 SECTORS AS OF 02/29/04 (%)
Financials 12.5
--------------------------------------
Consumer discretionary 11.4
--------------------------------------
Industrials 10.2
--------------------------------------
Information technology 10.1
--------------------------------------
Health care 9.2
TOP 10 HOLDINGS AS OF 02/29/04 (%)
3M 1.5
--------------------------------------
Millicom International Cellular 1.0
--------------------------------------
Pfizer 0.9
--------------------------------------
Schlumberger 0.9
--------------------------------------
Nokian Renkaat Oyj 0.9
--------------------------------------
Transocean 0.9
--------------------------------------
Wesco Financial 0.8
--------------------------------------
DST Systems 0.8
--------------------------------------
J.P. Morgan Chase 0.8
--------------------------------------
Citigroup 0.8
HOLDINGS DISCUSSED IN THIS REPORT AS OF 02/29/04 (%)
Texas Instruments 0.4
--------------------------------------
Polycom 0.7
--------------------------------------
Copart 0.5
--------------------------------------
Eaton 0.7
--------------------------------------
Dow Chemical 0.6
--------------------------------------
Georgia-Pacific 0.4
--------------------------------------
Millicom International Cellular 1.0
--------------------------------------
VimpelCom 0.6
--------------------------------------
Mitsubishi Tokyo Financial Group 0.5
--------------------------------------
Nomura Holdings 0.3
--------------------------------------
Nokian Renkaat Oyj 0.9
--------------------------------------
Biogen Idec 0.7
--------------------------------------
Cytyc 0.3
--------------------------------------
Pfizer 0.9
--------------------------------------
Tenet Healthcare 0.2
Your fund is actively managed and the composition of its portfolio will change
over time. Information provided is calculated as a percentage of net assets.
________________________________________________________________________________
COLUMBIA STRATEGIC INVESTOR FUND
MIXED RESULTS FROM CONSUMER-RELATED SECTORS
Within the consumer sector, the fund maintained a heavy concentration in media
stocks, despite disappointing returns for the period. We expect spending on
advertising to increase in advance of the presidential election and summer
Olympics. We sold our stakes in other weak performers, including Newell
Rubbermaid, which suffered when an expected turnaround failed to materialize.
The fund, however, maintained a sizable investment in Nokian Renkaat Oyj, a
Finnish tire company that rallied sharply as sales and profits improved in its
key Nordic and Russian markets.
MORE GROWTH-ORIENTED, LESS CYCLICAL FOCUS
By period end, we believed many cyclical stocks had reached fair market value
and we were concerned about the sustainability of the economic recovery beyond
2004. As a result, we shifted the fund more toward stocks with strong earnings
growth prospects and fewer ties to the economy. New additions included health
care stocks, such as Biogen Idec, a biotechnology company, and Cytyc, a testing
company. We also doubled our stake in Pfizer, a large pharmaceutical company
with an attractive valuation, and reduced our investment in Tenet Healthcare, a
health services company mired in Medicare fraud issues. In the technology
sector, we trimmed hardware stocks and replaced them with software stocks, which
are less sensitive to economic conditions.
Photo of: Robert A. Unger
Robert A. Unger, CFA, has managed or co-managed
Columbia Strategic Investor Fund since November
2000 and has been with the advisor and its
predecessors since 1984.
/s/ Robert A. Unger
Photo of: Emil A. Gjester
Emil A. Gjester has served as an assistant
portfolio manager or co-portfolio manager of the
fund since November 2002 and has been with the
advisor and its predecessors since 1996.
/s/ Emil A. Gjester
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.
25
Sidebar:
PERFORMANCE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04 ($)
SALES CHARGE WITHOUT WITH
-----------------------------------
Class A 22,021 20,753
-----------------------------------
Class B 21,811 21,811
-----------------------------------
Class C 21,812 21,812
-----------------------------------
Class D 21,830 21,614
-----------------------------------
Class Z 22,159 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 the original cost. Please visit www.columbiafunds.com for
daily and most recent month-end performance updates.
PERFORMANCE INFORMATION ________________________________________________________
COLUMBIA BALANCED FUND
VALUE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04
(MOUNTAIN CHART)
CLASS A CLASS A
SHARES SHARES LEHMAN
WITHOUT WITH S & P BROTHERS
SALES SALES 500 AGGREGATE
CHARGE CHARGE INDEX BOND INDEX
------ ------ ----- ----------
03/01/94 10000.00 9425.00 10000.00 10000.00
9700.00 9142.00 9564.00 9753.00
9745.00 9184.00 9686.00 9675.00
9851.00 9284.00 9845.00 9674.00
9666.00 9110.00 9604.00 9653.00
9959.00 9387.00 9919.00 9845.00
10140.00 9557.00 10326.00 9857.00
9942.00 9370.00 10073.00 9712.00
9959.00 9386.00 10299.00 9703.00
9817.00 9252.00 9925.00 9682.00
9959.00 9386.00 10071.00 9748.00
10097.00 9517.00 10332.00 9941.00
10431.00 9832.00 10735.00 10178.00
10582.00 9973.00 11052.00 10240.00
10715.00 10099.00 11377.00 10384.00
11087.00 10449.00 11832.00 10785.00
11232.00 10586.00 12106.00 10864.00
11449.00 10791.00 12508.00 10840.00
11573.00 10907.00 12540.00 10971.00
11836.00 11156.00 13069.00 11078.00
11819.00 11139.00 13022.00 11222.00
12168.00 11469.00 13593.00 11390.00
12456.00 11739.00 13856.00 11550.00
12611.00 11886.00 14327.00 11626.00
12605.00 11880.00 14460.00 11424.00
12705.00 11974.00 14599.00 11344.00
12754.00 12021.00 14813.00 11280.00
12879.00 12139.00 15196.00 11257.00
12999.00 12251.00 15253.00 11408.00
12734.00 12002.00 14579.00 11439.00
12936.00 12192.00 14887.00 11420.00
13328.00 12562.00 15725.00 11618.00
13487.00 12711.00 16159.00 11876.00
14072.00 13263.00 17381.00 12079.00
13924.00 13124.00 17036.00 11967.00
14267.00 13447.00 18101.00 12004.00
14308.00 13486.00 18242.00 12034.00
14094.00 13283.00 17493.00 11901.00
14488.00 13655.00 18537.00 12079.00
14972.00 14111.00 19666.00 12194.00
15421.00 14535.00 20547.00 12339.00
16300.00 15363.00 22182.00 12672.00
15805.00 14896.00 20940.00 12564.00
16252.00 15318.00 22088.00 12749.00
16068.00 15144.00 21350.00 12934.00
16385.00 15443.00 22339.00 12993.00
16532.00 15582.00 22723.00 13125.00
16764.00 15800.00 22975.00 13293.00
17351.00 16353.00 24631.00 13282.00
17845.00 16819.00 25893.00 13327.00
17947.00 16915.00 26154.00 13397.00
17870.00 16842.00 25704.00 13524.00
18468.00 17406.00 26748.00 13639.00
18391.00 17333.00 26464.00 13667.00
17010.00 16032.00 22638.00 13890.00
17590.00 16578.00 24089.00 14215.00
18160.00 17115.00 26047.00 14140.00
18831.00 17749.00 27626.00 14220.00
19852.00 18711.00 29217.00 14263.00
20418.00 19244.00 30438.00 14364.00
19965.00 18817.00 29491.00 14113.00
20615.00 19430.00 30671.00 14191.00
20813.00 19617.00 31858.00 14236.00
20407.00 19234.00 31106.00 14111.00
21105.00 19892.00 32833.00 14066.00
20688.00 19498.00 31808.00 14005.00
20443.00 19268.00 31652.00 13998.00
20347.00 19177.00 30785.00 14160.00
20978.00 19772.00 32734.00 14213.00
21425.00 20193.00 33398.00 14211.00
22370.00 21084.00 35365.00 14143.00
21853.00 20596.00 33590.00 14097.00
22487.00 21194.00 32955.00 14267.00
23917.00 22542.00 36178.00 14455.00
23417.00 22071.00 35089.00 14414.00
22834.00 21521.00 34370.00 14406.00
23590.00 22233.00 35219.00 14706.00
23517.00 22164.00 34669.00 14840.00
24526.00 23115.00 36822.00 15055.00
23491.00 22140.00 34878.00 15150.00
23143.00 21812.00 34732.00 15250.00
22164.00 20890.00 31995.00 15500.00
22556.00 21259.00 32152.00 15788.00
22969.00 21648.00 33293.00 16047.00
21524.00 20287.00 30257.00 16187.00
20788.00 19593.00 28338.00 16268.00
21688.00 20441.00 30540.00 16199.00
21788.00 20535.00 30745.00 16297.00
21481.00 20246.00 29998.00 16358.00
21421.00 20189.00 29704.00 16725.00
20643.00 19456.00 27844.00 16917.00
19607.00 18479.00 25595.00 17115.00
19987.00 18838.00 26083.00 17473.00
20771.00 19576.00 28084.00 17232.00
20887.00 19686.00 28331.00 17121.00
20595.00 19410.00 27918.00 17260.00
20413.00 19240.00 27379.00 17428.00
20707.00 19517.00 28408.00 17138.00
20016.00 18865.00 26687.00 17471.00
20088.00 18933.00 26489.00 17619.00
19244.00 18138.00 24603.00 17771.00
18261.00 17211.00 22687.00 17986.00
18507.00 17443.00 22834.00 18290.00
17473.00 16468.00 20352.00 18586.00
18144.00 17100.00 22143.00 18501.00
18846.00 17762.00 23447.00 18495.00
18179.00 17133.00 22071.00 18878.00
17940.00 16909.00 21493.00 18895.00
17836.00 16811.00 21170.00 19156.00
17910.00 16880.00 21375.00 19140.00
18827.00 17744.00 23137.00 19299.00
19472.00 18353.00 24356.00 19658.00
19579.00 18454.00 24668.00 19619.00
19611.00 18483.00 25102.00 18960.00
20060.00 18906.00 25592.00 19085.00
19988.00 18838.00 25320.00 19591.00
20659.00 19471.00 26753.00 19408.00
20837.00 19639.00 26989.00 19455.00
21466.00 20232.00 28403.00 19653.00
21666.00 20420.00 28926.00 19811.00
02/29/04 22021.00 20753.00 29318.00 20029.00
The above illustration assumes a $10,000 investment made on March 1, 1994, and
reinvestment of income and capital gains distributions. In addition, the graph
and table do not reflect a deduction of the taxes that a shareholder would pay
on fund distributions or the redemption of fund shares. The Lehman Brothers
Aggregate Bond Index is an unmanaged index that represents average
market-weighted performance of US Treasury and agency securities,
investment-grade corporate bonds, and mortgage-backed securities with maturities
greater than one year. The S&P 500 Index tracks the performance of 500
large-capitalization US stocks. Unlike the fund, indices are not investments, do
not incur fees 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 02/29/04 (%)
SHARE CLASS A B C D Z
- --------------------------------------------------------------------------------------------------------------
INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 10/01/91
- --------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- --------------------------------------------------------------------------------------------------------------
6-month (cumulative) 9.79 3.47 9.40 4.40 9.40 8.40 9.37 7.29 9.99
- --------------------------------------------------------------------------------------------------------------
1-year 23.48 16.38 22.60 17.60 22.60 21.60 22.77 20.56 24.08
- --------------------------------------------------------------------------------------------------------------
5-year 1.98 0.78 1.79 1.45 1.79 1.79 1.80 1.59 2.11
- --------------------------------------------------------------------------------------------------------------
10-year 8.21 7.57 8.11 8.11 8.11 8.11 8.12 8.01 8.28
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/03 (%)
SHARE CLASS A B C D Z
- -----------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- -----------------------------------------------------------------------------------------------------
6-month (cumulative) 9.64 3.33 9.29 4.29 9.29 8.29 9.32 7.24 9.90
- -----------------------------------------------------------------------------------------------------
1- year 18.08 11.29 17.28 12.28 17.28 16.28 17.44 15.28 18.73
- -----------------------------------------------------------------------------------------------------
5-year 1.57 0.38 1.41 1.07 1.41 1.41 1.42 1.22 1.69
- -----------------------------------------------------------------------------------------------------
10-year 7.99 7.35 7.90 7.90 7.90 7.90 7.91 7.80 8.05
All results shown assume reinvestment of distributions. 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%, and thereafter - 0%.
Class C has a CDSC of 1% which is applicable for the first year only. Class D
has a sales charge of 1% and 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, the 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. The returns for class
C include the returns of class B prior to 10/13/03, the date on which class C
was initially offered by the fund. The returns shown for class C also include
the performance of class Z prior to the inception of class B (11/01/02). 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, C, and D would have been lower.
26
Sidebar:
SUMMARY
o FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 29, 2004, THE FUND'S CLASS A SHARES
RETURNED 9.79% WITHOUT SALES CHARGE.
o THE FUND'S RETURN WAS LOWER THAN BOTH THE STANDARD & POOR'S 500 INDEX AND THE
LIPPER BALANCED FUNDS CATEGORY AVERAGE, BUT AHEAD OF THE LEHMAN BROTHERS
AGGREGATE BOND INDEX.
o ABOVE-AVERAGE EXPOSURE TO INDUSTRIAL STOCKS HURT RELATIVE PERFORMANCE WITHIN
THE FUND'S STOCK PORTFOLIO. THE FIXED INCOME PORTION OF THE FUND TRACKED ITS
BENCHMARK.
[Illustration of 2 arrows pointing up]
S&P 500
CLASS A SHARES INDEX
9.79% 14.59%
OBJECTIVE
Seeks high total return
TOTAL NET ASSETS
$622.1 million
NET ASSET VALUE PER SHARE AS OF 02/29/04 ($)
Class A 20.92
---------------------------
Class B 20.90
---------------------------
Class C 20.90
---------------------------
Class D 20.89
---------------------------
Class Z 20.91
DISTRIBUTIONS DECLARED PER SHARE 09/01/03 - 02/29/04 ($)
Class A 0.13
---------------------------
Class B 0.06
---------------------------
Class C 0.04
---------------------------
Class D 0.07
---------------------------
Class Z 0.18
PORTFOLIO MANAGERS' REPORT _____________________________________________________
COLUMBIA BALANCED FUND
For the six-month period ended February 29, 2004, Columbia Balanced Fund class A
shares returned 9.79% without sales charge. That was higher than the Lehman
Brothers Aggregate Bond Index, which returned 4.92%, and lower than the S&P 500
Index, which returned 14.59%. The fund's performance was slightly lower than the
Lipper Balanced Funds Category average, which returned 10.56%.1 The fund's
above-average exposure to industrial stocks hurt relative performance within the
fund's stock portfolio when that sector declined from late December through
early February. The fund's emphasis on asset-backed securities and a modest
holding of lower quality bonds helped performance within the fixed income
portion of the fund. But those gains were almost entirely offset by the fund's
relatively short duration, which held back performance as interest rates
declined.
FUND POSITIONED FOR RECOVERING ECONOMY
During the period, the portfolio was positioned for a recovering economy, with
higher allocations in economically-sensitive sectors such as industrials,
information technology, basic materials and consumer cyclicals. Our decision to
overweight these sectors relative to the S&P 500 Index produced mixed results.
Our investments in basic materials stocks did well, while industrial and
cyclical stocks detracted from relative performance. Although industrial stocks
3M, Dover and General Electric all had positive returns for the period, they
failed to keep pace with their industry peers and the S&P 500 Index. We sold our
position in Dover during the period.
In technology, where we focused on broadband, wireless information access and
digital media, the fund benefited from good stock selection. Our positions in
National Semiconductor and Advanced Micro Devices both gained more than 30%,
while Motorola rose 73% during the period. On the down side, Seagate Technology
fared poorly when its earnings disappointed overly hopeful investors. We also
missed out on gains from the telecommunications and utilities sector, which were
strong performers, because the fund had little exposure to either group.
FIXED-INCOME RETURNS STILL MUTED
The return on the fund's bond holdings was in line with the Lehman Brothers
Aggregate Bond Index. The fund's small position in B and BB-rated bonds, which
was well within its 10% limit on below-investment grade securities, and an
emphasis on asset-backed securities aided performance. However, we maintained a
slightly shorter duration than our benchmark and that hurt performance. Duration
is a measure of interest rate sensitivity. We shortened duration because we
expected interest rates to rise in a strengthening economy, and our shorter
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.
27
Sidebar:
PORTFOLIO COMPOSITION AS OF 02/29/04 (%)
Common stock 65.9
-----------------------------------------
Corporate notes & bonds 13.8
-----------------------------------------
Government issues 13.7
-----------------------------------------
Collateralized mortgage obligations 2.3
-----------------------------------------
Cash & cash equivalents,
net receivables & payables 1.2
-----------------------------------------
Asset-backed securities 1.1
-----------------------------------------
Preferred stock 1.0
-----------------------------------------
Commercial mortgage-backed
securities 1.0
TOP 10 EQUITY HOLDINGS AS OF 02/29/04 (%)
Wal-Mart Stores 2.8
-----------------------------------------
Citigroup 2.6
-----------------------------------------
General Electric 2.3
-----------------------------------------
Pfizer 2.2
-----------------------------------------
Microsoft 1.9
-----------------------------------------
Dow Chemical 1.6
-----------------------------------------
Exxon Mobil 1.6
-----------------------------------------
American Express 1.3
-----------------------------------------
Bank One 1.2
-----------------------------------------
American International Group 1.2
HOLDINGS DISCUSSED IN THIS REPORT AS OF 02/29/04 (%)
3M 0.7
-----------------------------------------
General Electric 2.3
-----------------------------------------
National Semiconductor 0.3
-----------------------------------------
Advanced Micro Devices 0.3
-----------------------------------------
Motorola 0.3
-----------------------------------------
Seagate Technology 0.4
Your fund is actively managed and the composition of its portfolio will change
over time. Information provided is calculated as a percentage of net assets.
________________________________________________________________________________
COLUMBIA BALANCED FUND
duration would have afforded the fund some protection because interest rates and
bond prices move in opposite directions. Instead, interest rates fell and the
fund gave up some performance because of this move.
TEMPERING EXPECTATIONS
Looking ahead, we believe the economy has the potential to continue to expand,
but future growth is likely to be somewhat slower as we move from recovery into
an economic growth phase. We think there will probably be continued volatility
in interest rates as investors try to come to grips with a strong economy and
rising commodity prices, on one hand, but little or no rise in job growth on the
other. We have positioned the portfolio for a positive economic environment, but
may begin to shift our allocations to favor companies that will do well in a
slower growing economy.
Columbia Balanced Fund is managed by a group of managers from Columbia's large
cap core team:
/s/ Scott J. Drysdale /s/ Ronald F. Gibbs
Scott J. Drysdale Ronald F. Gibbs, CFA
/s/ Trent E. Nevills /s/ Guy W. Pope
Trent E. Nevills Guy W. Pope, CFA
and Columbia's bond team:
/s/ Leonard A. Aplet /s/ Jeffrey L. Rippey
Leonard A. Aplet, CFA Jeffrey L. Rippey, CFA
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.
28
Sidebar:
PERFORMANCE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04 ($)
SALES CHARGE WITHOUT WITH
-----------------------------------
Class A 16,516 15,737
-----------------------------------
Class B 16,347 16,347
-----------------------------------
Class C 16,373 16,373
-----------------------------------
Class D 16,478 16,321
-----------------------------------
Class G 16,397 16,397
-----------------------------------
Class T 16,542 15,763
-----------------------------------
Class Z 16,586 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 the original cost. Please visit www.columbiafunds.com for
daily and most recent month-end performance updates.
PERFORMANCE INFORMATION ________________________________________________________
COLUMBIA SHORT TERM BOND FUND
VALUE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04
(MOUNTAIN CHART)
CLASS A MERRILL
CLASS A SHARES LYNCH MERRILL LYNCH
SHARES WITH 1-3 YEAR 1-5 YEAR
WITHOUT SALES TREASURY GOVERNMENT/
SALES CHARGE CHARGE INDEX CORPORATE INDEX
------------ ------ ----- ---------------
03/1994 10000.00 9525.00 10000.00 10000.00
9947.00 9475.00 9950.00 9909.00
9918.00 9447.00 9915.00 9852.00
9928.00 9456.00 9929.00 9865.00
9951.00 9478.00 9959.00 9886.00
10026.00 9549.00 10044.00 9991.00
10054.00 9576.00 10080.00 10027.00
10022.00 9546.00 10056.00 9975.00
10041.00 9565.00 10079.00 9989.00
10011.00 9536.00 10033.00 9937.00
10022.00 9546.00 10056.00 9963.00
10147.00 9665.00 10196.00 10114.00
10254.00 9767.00 10336.00 10286.00
10307.00 9817.00 10394.00 10348.00
10395.00 9901.00 10486.00 10454.00
10561.00 10060.00 10670.00 10699.00
10609.00 10105.00 10727.00 10763.00
10642.00 10136.00 10771.00 10791.00
10701.00 10193.00 10836.00 10865.00
10747.00 10237.00 10889.00 10927.00
10847.00 10332.00 10980.00 11034.00
10959.00 10439.00 11077.00 11151.00
11045.00 10520.00 11162.00 11252.00
11143.00 10614.00 11257.00 11352.00
11064.00 10538.00 11210.00 11274.00
11014.00 10491.00 11200.00 11242.00
11003.00 10480.00 11209.00 11231.00
11009.00 10486.00 11232.00 11239.00
11094.00 10567.00 11313.00 11335.00
11130.00 10601.00 11357.00 11376.00
11151.00 10621.00 11396.00 11403.00
11268.00 10733.00 11500.00 11529.00
11402.00 10861.00 11630.00 11688.00
11492.00 10946.00 11719.00 11802.00
11472.00 10927.00 11719.00 11772.00
11520.00 10973.00 11774.00 11825.00
11536.00 10988.00 11801.00 11845.00
11502.00 10956.00 11797.00 11816.00
11608.00 11057.00 11893.00 11930.00
11673.00 11119.00 11974.00 12017.00
11750.00 11192.00 12057.00 12111.00
11887.00 11322.00 12189.00 12289.00
11878.00 11314.00 12200.00 12272.00
11956.00 11388.00 12293.00 12386.00
12049.00 11476.00 12384.00 12497.00
12054.00 11481.00 12414.00 12521.00
12133.00 11557.00 12498.00 12614.00
12256.00 11674.00 12620.00 12761.00
12241.00 11660.00 12631.00 12759.00
12275.00 11692.00 12683.00 12808.00
12338.00 11752.00 12742.00 12869.00
12402.00 11813.00 12810.00 12947.00
12450.00 11859.00 12876.00 13022.00
12500.00 11906.00 12937.00 13081.00
12669.00 12067.00 13100.00 13270.00
12851.00 12241.00 13273.00 13508.00
12914.00 12301.00 13338.00 13551.00
12868.00 12257.00 13326.00 13532.00
12914.00 12301.00 13373.00 13582.00
12958.00 12343.00 13426.00 13650.00
12857.00 12246.00 13360.00 13527.00
12946.00 12331.00 13452.00 13638.00
12972.00 12355.00 13495.00 13683.00
12937.00 12322.00 13487.00 13630.00
12978.00 12362.00 13529.00 13669.00
13005.00 12388.00 13572.00 13684.00
13017.00 12399.00 13612.00 13712.00
13092.00 12471.00 13700.00 13823.00
13107.00 12484.00 13737.00 13855.00
13120.00 12497.00 13763.00 13877.00
13145.00 12521.00 13783.00 13880.00
13133.00 12509.00 13777.00 13849.00
13214.00 12587.00 13869.00 13947.00
13267.00 12637.00 13955.00 14056.00
13303.00 12671.00 13992.00 14066.00
13358.00 12723.00 14049.00 14107.00
13462.00 12822.00 14195.00 14293.00
13518.00 12876.00 14285.00 14395.00
13609.00 12963.00 14390.00 14528.00
13666.00 13017.00 14494.00 14659.00
13725.00 13073.00 14572.00 14725.00
13877.00 13218.00 14711.00 14894.00
14101.00 13431.00 14886.00 15110.00
14274.00 13596.00 15072.00 15330.00
14391.00 13708.00 15170.00 15449.00
14496.00 13808.00 15296.00 15590.00
14512.00 13823.00 15337.00 15599.00
14596.00 13903.00 15423.00 15691.00
14647.00 13952.00 15475.00 15749.00
14872.00 14165.00 15649.00 16001.00
14992.00 14280.00 15739.00 16118.00
15194.00 14473.00 15999.00 16406.00
15380.00 14649.00 16151.00 16600.00
15280.00 14554.00 16116.00 16500.00
15242.00 14518.00 16122.00 16466.00
15298.00 14571.00 16154.00 16514.00
15367.00 14637.00 16232.00 16616.00
15279.00 14554.00 16121.00 16450.00
15464.00 14730.00 16302.00 16677.00
15558.00 14819.00 16367.00 16805.00
15650.00 14907.00 16505.00 16951.00
15743.00 14995.00 16706.00 17168.00
15854.00 15101.00 16763.00 17314.00
16019.00 15258.00 16902.00 17534.00
15933.00 15176.00 16941.00 17532.00
15936.00 15179.00 16888.00 17501.00
16081.00 15317.00 17049.00 17769.00
16100.00 15336.00 17047.00 17777.00
16227.00 15457.00 17119.00 17934.00
16242.00 15471.00 17149.00 17970.00
16305.00 15531.00 17182.00 18051.00
16428.00 15647.00 17247.00 18244.00
16434.00 15654.00 17273.00 18268.00
16193.00 15424.00 17180.00 18032.00
16212.00 15442.00 17192.00 18043.00
16384.00 15606.00 17348.00 18330.00
16332.00 15556.00 17284.00 18218.00
16320.00 15545.00 17276.00 18216.00
16423.00 15643.00 17376.00 18354.00
16471.00 15688.00 17411.00 18422.00
02/2004 16516.00 15737.00 17490.00 18561.00
The above illustration assumes a $10,000 investment made on March 1, 1994, and
reinvestment of income and capital gains distributions. In addition, the graph
and table do not reflect a deduction of the taxes that a shareholder would pay
on fund distributions or the redemption of fund shares. The Merrill Lynch 1-3
Year Treasury Index is an unmanaged index that measures the return of Treasury
bills with maturities of 1-3 years and is intended to provide a benchmark for
the prior investment objective and strategy of the fund. 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. 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.
AVERAGE ANNUAL TOTAL RETURN AS OF 02/29/04 (%)
SHARE CLASS A B C D G T Z
- -------------------------------------------------------------------------------------------------------------------------
INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 11/01/02 11/01/02 11/06/86
- -------------------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- -------------------------------------------------------------------------------------------------------------------------
6-month (cumulative) 1.89 -2.95 1.49 -3.51 1.65 0.65 1.82 -0.23 1.59 -3.41 1.93 -2.92 2.02
- -------------------------------------------------------------------------------------------------------------------------
1-year 1.80 -2.99 1.05 -3.94 1.21 0.22 1.66 -0.37 1.24 -3.76 1.93 -2.86 2.10
- -------------------------------------------------------------------------------------------------------------------------
5-year 5.14 4.13 4.92 4.59 4.95 4.95 5.09 4.89 4.98 4.49 5.17 4.16 5.23
- -------------------------------------------------------------------------------------------------------------------------
10-year 5.15 4.64 5.04 5.04 5.05 5.05 5.12 5.02 5.07 5.07 5.16 4.66 5.19
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/03 (%)
SHARE CLASS A B C D G T Z
- -------------------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- -------------------------------------------------------------------------------------------------------------------------
6-month (cumulative) -0.06 -4.84 -0.46 -5.41 -0.32 -1.31 -0.14 -2.13 -0.36 -5.31 -0.02 -4.81 0.07
- -------------------------------------------------------------------------------------------------------------------------
1-year 2.14 -2.69 1.38 -3.62 1.52 0.52 1.99 -0.05 1.58 -3.42 2.27 -2.56 2.47
- -------------------------------------------------------------------------------------------------------------------------
5-year 4.92 3.90 4.73 4.40 4.76 4.76 4.88 4.68 4.79 4.29 4.95 3.93 5.00
- -------------------------------------------------------------------------------------------------------------------------
10-year 5.06 4.54 4.96 4.96 4.98 4.98 5.04 4.94 4.99 4.99 5.07 4.56 5.10
All results shown assume reinvestment of distributions. 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%, and thereafter - 0%. Class C
has a CDSC of 1% which is applicable for the first year only. Class D has a
sales charge of 1% and 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, the 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. The returns for
class C include the returns of class B prior to 10/13/03, the date on which
class C was initially offered by the fund. The returns shown for class C also
include the performance of class Z prior to the inception of class B (11/01/02).
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, C, D, G and T would have been lower.
29
Sidebar:
SUMMARY
o FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 29, 2004, THE FUND'S CLASS A SHARES
RETURNED 1.89% WITHOUT SALES CHARGE.
o THE FUND'S RETURN WAS HIGHER THAN THE MERRILL LYNCH 1-3 YEAR TREASURY INDEX,
BUT LESS THAN THE MERRILL LYNCH 1-5 YEAR GOVERNMENT/CORPORATE INDEX AND THE
LIPPER SHORT TERM INVESTMENT GRADE DEBT CATEGORY AVERAGE.
o THE FUND'S EMPHASIS ON BOTH SHORT-TERM FLOATING RATE NOTES AND LONGER-TERM
SECURITIES WITHIN THE FUND'S MATURITY RANGE AIDED PERFORMANCE DURING THE
PERIOD.
[Illustration of 2 arrows pointing up]
MERRILL LYNCH 1-3
CLASS A SHARES YEAR TREASURY INDEX
1.89% 1.75%
OBJECTIVE
Seeks a high level of current
income consistent with a high
degree of principal stability
TOTAL NET ASSETS
$543.5 million
NET ASSET VALUE PER SHARE AS OF 02/29/04 ($)
Class A 8.70
--------------------------
Class B 8.70
--------------------------
Class C 8.70
--------------------------
Class D 8.70
--------------------------
Class G 8.70
--------------------------
Class T 8.70
--------------------------
Class Z 8.70
DISTRIBUTIONS DECLARED PER SHARE 09/01/03 - 02/29/04 ($)
Class A 0.08
--------------------------
Class B 0.05
--------------------------
Class C 0.05
--------------------------
Class D 0.08
--------------------------
Class G 0.06
--------------------------
Class T 0.09
--------------------------
Class Z 0.09
PORTFOLIO MANAGERS' REPORT _____________________________________________________
COLUMBIA SHORT TERM BOND FUND
For the six-month period ended February 29, 2004, Columbia Short Term Bond Fund
class A shares returned 1.89% without sales charge. The fund's performance was
higher than the benchmark Merrill Lynch 1-3 Year Treasury Index, which returned
1.75%, and lower than the Merrill Lynch 1-5 Year Government/Corporate Index,
which returned 2.84%, during the period. The fund slightly underperformed its
peer group. The Lipper Short Term Investment Grade Debt Category average was
2.02%.1 The fund's "barbell" structure--emphasizing short-term floating rate
notes and longer-term securities within the fund's maturity range--aided
performance during the period.
BONDS PERFORMED WELL EVEN AS THE ECONOMY IMPROVED
Most economic indicators were strong throughout the second half of 2003,
highlighted by impressive third-quarter GDP growth of 8.2%. Fourth quarter GDP
growth of 4.1% was moderate by comparison, but still indicative of a recovering
economy. Although interest rates tend to rise as economic activity picks up, the
Federal Reserve Board has maintained a monetary policy aimed at keeping interest
rates low because inflationary pressures have not materialized and the job
market has remained sluggish. The Fed left a key short-term interest rate--the
fed funds rate--unchanged at just 1.0% throughout the period. Against this
backdrop, rates on 2-year Treasury notes fell by 33 basis points and the 5-year
Treasury rate declined by 53 basis points. A basis point is one one-hundredth of
a percent.
The market environment that prevailed during the period favored fixed-income
investments with longer maturities. Generally speaking, risk-taking was rewarded
throughout the bond market, as lower-quality securities consistently
outperformed investment grade bonds. These trends were modestly negative for the
fund, which focuses on higher-quality short-term bonds.
BARBELL APPROACH OFFSETS IMPACT OF SHORTER DURATION
The fund was able to generate a competitive return even though its overall
duration was shorter than that of the benchmark. Duration is a measure of
interest rate sensitivity. By keeping the fund's duration short while interest
rates declined, we gave up some performance relative to the market. However we
more than made up for that decision with the fund's "barbell" investment
approach--combining short-term floating rate instruments with securities at the
long end of our maturity spectrum (five years). The floating rate securities
carried higher yields than Treasury securities of comparable maturities, while
the longer-term securities increased in value as long-term rates declined.
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.
30
Sidebar:
PORTFOLIO QUALITY AS OF 02/29/04 (%)
Aaa 37.1
----------------------------------
Aa 11.4
----------------------------------
A 20.0
----------------------------------
Baa 10.3
----------------------------------
Agency 17.4
----------------------------------
Treasury 3.8
Portfolio quality is calculated as a percentage of total investments.
Ratings shown represent the highest rating assigned to a particular bond by one
of the following nationally recognized rating agencies: Standard & Poor's
Corporation, Moody's Investors Service, Inc. or Fitch Investors Service, Inc.
PORTFOLIO COMPOSITION AS OF 02/29/04 (%)
Corporate notes & bonds 39.5
------------------------------------------
Collateralized mortgage obligations 20.3
------------------------------------------
U.s. Government & Agency 18.4
------------------------------------------
Asset-backed securities 13.7
------------------------------------------
Cash & Cash Equivalents,
net receivables & payables 7.3
------------------------------------------
Commercial mortgage-backed
securities 0.8
MATURITY BREAKDOWN AS OF 02/29/04 (%)
0-1 YEARS 50.1
------------------------------------------
1-3 YEARS 31.9
------------------------------------------
3-5 YEARS 16.0
------------------------------------------
5+ YEARS 2.0
Your fund is actively managed and the composition of its portfolio will change
over time. Portfolio composition and holdings discussed are calculated as a
percentage of net assets.
________________________________________________________________________________
COLUMBIA SHORT TERM BOND FUND
We also repositioned the fund's mortgage investments during the period. We
modestly shifted away from conventional pass-through securities in favor of
structured instruments, such as collateralized mortgage obligations (CMOs). This
move was designed to defend against changes in mortgage prepayment activity.
Mortgage prepayments have been quite high due to low mortgage rates. But if
rates rise and the level of prepayments drops, it would hurt the value of
conventional mortgage bonds.
Separately, we increased our position in corporate bonds from 32% to 39% of the
portfolio. As yields on corporate bonds came down during the period, their
prices rose and this move aided overall performance.
PREPARING FOR HIGHER INTEREST RATES
We expect the economy to continue to expand throughout 2004. If the economy
lives up to this estimate, we expect economic growth to translate into higher
short-term interest rates, especially if the labor market begins to improve.
Although the timing of such an upward shift is impossible to pinpoint, the
portfolio's shorter-than-average duration and its emphasis on floating rate
securities make it well positioned for such a scenario, and our emphasis on
relatively well-structured mortgage-related securities should provide additional
protection.
Leonard A. Aplet, CFA, has co-managed Columbia
Short Term Bond Fund since November 2000 and has
been with the advisor and its predecessors since
1987.
/s/ Leonard A. Aplet
Richard R. Cutts, CFA, has co-managed the fund
since December 2002 and has been with the advisor
and its predecessors since 1994.
/s/ Richard R. Cutts
The fund offers the potential for current income and capital preservation but is
subject to interest rate risk, credit risk and prepayment risk.
31
Sidebar:
PERFORMANCE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04 ($)
SALES CHARGE WITHOUT WITH
-----------------------------------
Class A 18,871 17,974
-----------------------------------
Class B 18,681 18,681
-----------------------------------
Class C 18,687 18,687
-----------------------------------
Class D 18,735 18,552
-----------------------------------
Class Z 18,994 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 the original cost. Please visit www.columbiafunds.com for
daily and most recent month-end performance updates.
PERFORMANCE INFORMATION_________________________________________________________
COLUMBIA FIXED INCOME SECURITIES FUND
VALUE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04
(MOUNTAIN CHART)
CLASS A CLASS A
SHARES SHARES LEHMAN
WITHOUT WITH BROTHERS
SALES SALES AGGREGATE
CHARGE CHARGE BOND INDEX
------ ------ ----------
03/1994 10000.00 9525.00 10000.00
9764.00 9300.00 9753.00
9685.00 9225.00 9675.00
9677.00 9217.00 9674.00
9661.00 9202.00 9653.00
9832.00 9365.00 9845.00
9840.00 9372.00 9857.00
9700.00 9239.00 9712.00
9679.00 9219.00 9703.00
9656.00 9198.00 9682.00
9731.00 9268.00 9748.00
9917.00 9446.00 9941.00
10143.00 9661.00 10178.00
10212.00 9726.00 10240.00
10362.00 9869.00 10384.00
10775.00 10263.00 10785.00
10861.00 10345.00 10864.00
10833.00 10318.00 10840.00
10970.00 10448.00 10971.00
11089.00 10562.00 11078.00
11234.00 10701.00 11222.00
11406.00 10864.00 11390.00
11570.00 11021.00 11550.00
11641.00 11088.00 11626.00
11426.00 10883.00 11424.00
11350.00 10811.00 11344.00
11263.00 10728.00 11280.00
11238.00 10704.00 11257.00
11397.00 10855.00 11408.00
11415.00 10873.00 11439.00
11406.00 10864.00 11420.00
11611.00 11059.00 11618.00
11857.00 11294.00 11876.00
12077.00 11503.00 12079.00
11962.00 11394.00 11967.00
12010.00 11439.00 12004.00
12047.00 11475.00 12034.00
11919.00 11353.00 11901.00
12094.00 11520.00 12079.00
12207.00 11627.00 12194.00
12347.00 11761.00 12339.00
12687.00 12084.00 12672.00
12574.00 11977.00 12564.00
12755.00 12149.00 12749.00
12949.00 12334.00 12934.00
12988.00 12371.00 12993.00
13106.00 12483.00 13125.00
13263.00 12633.00 13293.00
13252.00 12623.00 13282.00
13283.00 12652.00 13327.00
13352.00 12718.00 13397.00
13484.00 12844.00 13524.00
13593.00 12948.00 13639.00
13614.00 12967.00 13667.00
13836.00 13179.00 13890.00
14099.00 13429.00 14215.00
13975.00 13311.00 14140.00
14033.00 13367.00 14220.00
14082.00 13413.00 14263.00
14182.00 13509.00 14364.00
13910.00 13249.00 14113.00
13999.00 13334.00 14191.00
14045.00 13378.00 14236.00
13878.00 13219.00 14111.00
13817.00 13161.00 14066.00
13724.00 13073.00 14005.00
13697.00 13046.00 13998.00
13866.00 13207.00 14160.00
13904.00 13244.00 14213.00
13921.00 13260.00 14211.00
13867.00 13208.00 14143.00
13785.00 13130.00 14097.00
13926.00 13264.00 14267.00
14102.00 13433.00 14455.00
14053.00 13386.00 14414.00
14042.00 13375.00 14406.00
14346.00 13665.00 14706.00
14448.00 13762.00 14840.00
14668.00 13971.00 15055.00
14771.00 14069.00 15150.00
14852.00 14146.00 15250.00
15122.00 14404.00 15500.00
15429.00 14696.00 15788.00
15702.00 14956.00 16047.00
15839.00 15087.00 16187.00
15924.00 15168.00 16268.00
15824.00 15072.00 16199.00
15930.00 15173.00 16297.00
15976.00 15217.00 16358.00
16342.00 15566.00 16725.00
16499.00 15715.00 16917.00
16672.00 15880.00 17115.00
17009.00 16201.00 17473.00
16796.00 15999.00 17232.00
16684.00 15891.00 17121.00
16786.00 15988.00 17260.00
16922.00 16118.00 17428.00
16683.00 15891.00 17138.00
16992.00 16185.00 17471.00
17121.00 16308.00 17619.00
17184.00 16368.00 17771.00
17349.00 16525.00 17986.00
17646.00 16808.00 18290.00
17903.00 17053.00 18586.00
17696.00 16855.00 18501.00
17676.00 16837.00 18495.00
17945.00 17093.00 18878.00
17967.00 17113.00 18895.00
18216.00 17351.00 19156.00
18203.00 17339.00 19140.00
18340.00 17469.00 19299.00
18633.00 17748.00 19658.00
18574.00 17692.00 19619.00
17981.00 17127.00 18960.00
18095.00 17235.00 19085.00
18554.00 17673.00 19591.00
18391.00 17517.00 19408.00
18382.00 17509.00 19455.00
18551.00 17670.00 19653.00
18694.00 17806.00 19811.00
02/2004 18871.00 17974.00 20029.00
The above illustration assumes a $10,000 investment made on March 1, 1994, and
reinvestment of income and capital gains distributions. In addition, the graph
and table do not reflect a deduction of the taxes that a shareholder would pay
on fund distributions or the redemption of fund shares. 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
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 02/29/04 (%)
SHARE CLASS A B C D Z
- ------------------------------------------------------------------------------------------------------------
INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 02/25/83
- ------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- ------------------------------------------------------------------------------------------------------------
6-month (cumulative) 4.28 -0.71 3.88 -1.12 3.91 2.91 3.97 1.98 4.43
- ------------------------------------------------------------------------------------------------------------
1-year 3.58 -1.34 2.82 -2.18 2.85 1.85 3.07 1.03 4.11
- ------------------------------------------------------------------------------------------------------------
5-year 6.29 5.27 6.08 5.76 6.08 6.08 6.14 5.93 6.43
- ------------------------------------------------------------------------------------------------------------
10-year 6.56 6.04 6.45 6.45 6.45 6.45 6.48 6.38 6.63
- ------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/03 (%)
SHARE CLASS A B C D Z
- ------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- ------------------------------------------------------------------------------------------------------
6-month (cumulative) -0.12 -4.89 -0.50 -5.41 -0.46 -1.44 -0.38 -2.36 0.11
- ------------------------------------------------------------------------------------------------------
1-year 3.38 -1.50 2.61 -2.39 2.65 1.65 2.85 0.81 3.94
- ------------------------------------------------------------------------------------------------------
5-year 5.67 4.65 5.49 5.16 5.49 5.49 5.54 5.32 5.80
- ------------------------------------------------------------------------------------------------------
10-year 6.30 5.79 6.21 6.21 6.21 6.21 6.24 6.13 6.37
All results shown assume reinvestment of distributions. The "with sales charge"
returns include the maximum 4.75% charge for class A shares and 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%, and thereafter - 0%. Class C
has a CDSC of 1% which is applicable for the first year only. Class D has a
sales charge of 1% and 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, the 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. The returns for class
C include the returns of class B prior to 10/13/2003, the date on which class C
was initially offered by the fund. The returns shown for class C also include
the performance of class Z prior to the inception of class B (11/01/02). 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, C and D would have been lower.
32
Sidebar:
SUMMARY
o FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 29, 2004, THE FUND'S CLASS A SHARES
RETURNED 4.28% WITHOUT SALES CHARGE.
o THE FUND UNDERPERFORMED ITS BENCHMARK, THE LEHMAN BROTHERS AGGREGATE BOND
INDEX, AS WELL AS ITS PEER GROUP, THE LIPPER CORPORATE DEBT FUNDS A RATED
CATEGORY.
o THE FUND'S RELATIVELY CONSERVATIVE POSITIONING HURT ITS RELATIVE RETURN IN A
PERIOD WHEN MORE SPECULATIVE SECURITIES OUTPERFORMED.
[Illustration of 2 arrows pointing up]
LEHMAN BROTHERS
AGGREGATE
CLASS A SHARES BOND INDEX
4.28% 4.92%
OBJECTIVE
Seeks long-term capital appreciation
TOTAL NET ASSETS
$405.5 million
NET ASSET VALUE PER SHARE AS OF 02/29/04 ($)
Class A 13.65
---------------------------
Class B 13.65
---------------------------
Class C 13.65
---------------------------
Class D 13.65
---------------------------
Class Z 13.65
DISTRIBUTIONS DECLARED PER SHARE 09/01/03 - 02/29/04 ($)
Class A 0.26
---------------------------
Class B 0.20
---------------------------
Class C 0.17
---------------------------
Class D 0.22
---------------------------
Class Z 0.28
PORTFOLIO MANAGERS' REPORT______________________________________________________
COLUMBIA FIXED INCOME SECURITIES FUND
For the six-month period ended February 29, 2004, Columbia Fixed Income
Securities Fund class A shares returned 4.28% without sales charge. By
comparison, the Lehman Brothers Aggregate Bond Index and the Lipper Corporate
Debt Funds A Rated Category average returned 4.92% and 5.19%, respectively, over
the same period.1 We believe the fund trailed its benchmark and peer group
primarily because of its relatively conservative positioning: it carried a
duration that was slightly shorter than the index while interest rates were
falling. And, its average credit quality was higher than the market at a time
when lower-rated bonds outperformed higher-rated bonds. Duration is a measure of
interest rate sensitivity. We shortened duration as a defensive move. With
interest rates at historical lows, we wanted to limit the potential for capital
erosion if interest rates rose as well as to provide investors with current
income. In fact, interest rates fell during the period, and we gave up some
short-term performance because of our decision. However, those results were
partially offset by the portfolio's increased exposure to corporate bonds, which
outperformed during the period.
BONDS PERFORMED WELL EVEN AS THE ECONOMY IMPROVED
Most economic indicators were strong throughout the second half of 2003,
highlighted by impressive third-quarter GDP growth of 8.2%. Fourth quarter GDP
growth of 4.1% was more moderate by comparison, but still indicative of a
recovering economy. Although interest rates tend to rise as economic activity
picks up, the Federal Reserve Board has maintained a monetary policy aimed at
keeping interest rates low. With no great build-up in inflation and a sluggish
job market, the Fed left a key short-term interest rate--the fed funds
rate--unchanged at just 1.0% throughout the period. Against this backdrop, rates
on 5-Year Treasury notes fell by 53 basis points and the 10-year Treasury rate
declined by 49 basis points. A basis point is one one-hundredth of a percent.
LONGER MATURITIES AND LOWER QUALITY PREVAILED
As noted above, declining interest rates favored fixed-income investments with
longer maturities, so our relatively short duration modestly decreased
performance. The fund also lost some ground because lower-quality securities
outperformed the investment grade securities in which the fund exclusively
invests. For example, during the period A-rated corporate bonds returned 5.83%,
while Baa-rated bonds returned 7.78%--a difference of 1.95 percentage points. We
believe that our Baa
1 Lipper Inc., a widely respected data provider in the industry, calculates an
average total return for mutual funds with similar investment objectives as
the fund.
33
Sidebar:
PORTFOLIO QUALITY AS OF 02/29/04 (%)
Treasury/Agency 40.8
------------------------------
Aaa 16.3
------------------------------
Aa 9.3
------------------------------
A 14.1
------------------------------
Baa 12.8
------------------------------
Ba 3.8
------------------------------
B 2.8
------------------------------
Caa 0.1
Portfolio quality is calculated as a percentage of total investments.
Ratings shown represent the highest rating assigned to a particular bond by one
of the nationally recognized rating agencies: Standard & Poor's Corporation,
Moody's Investors Service, Inc. or Fitch Investors Service, Inc.
PORTFOLIO COMPOSITION AS OF 02/29/04 (%)
Corporate notes & bonds 43.3
----------------------------------------------
U.S. Government & agency 39.7
----------------------------------------------
Collateralized mortgage obligations 7.2
----------------------------------------------
Cash & Cash Equivalents,
net receivables & payables 4.9
----------------------------------------------
Asset-backed securities 4.3
----------------------------------------------
Commercial mortgage-backed
securities 0.6
MATURITY BREAKDOWN AS OF 02/29/04 (%)
0-1 YEARS 20.3
----------------------------
1-5 YEARS 45.7
----------------------------
5-10 YEARS 21.6
----------------------------
10-20 YEARS 4.1
----------------------------
20+ YEARS 8.3
Your fund is actively managed and the composition of its portfolio will change
over time. Portfolio composition and holdings discussed are calculated as a
percentage of net assets.
________________________________________________________________________________
COLUMBIA FIXED INCOME SECURITIES FUND
weighting was below that of our peer group. Even at the low-quality end of our
holdings, we concentrated on bonds that we believed were candidates for a
ratings upgrade rather than the marginal credits whose higher yields were in
strong demand during the period.
MORTGAGE INVESTMENTS REPOSITIONED
We also repositioned the fund's mortgage investments during the period. We
shifted away from 30-year conventional pass-through securities in favor of
15-year securities and structured instruments, such as collateralized mortgage
obligations (CMOs). This move was designed to defend against changes in mortgage
prepayment activity. Mortgage prepayments have been quite high due to low
mortgage rates. But if rates rise and the level of prepayments drops, it would
hurt the value of conventional mortgage bonds.
Separately, we increased our position in corporate bonds from 41% to 43% of the
portfolio. As yields on corporate bonds came down during the period, their
prices rose, and this move aided overall performance.
PREPARING FOR HIGHER INTEREST RATES
We expect the economy to continue to expand throughout 2004. At some point we
expect this growth to translate into higher interest rates. Although the timing
of an upward shift in rates is impossible to pinpoint, the portfolio's
shorter-than-average duration makes it well positioned for a rising-rate
scenario, and our shift from pass-throughs to CMOs has the potential to provide
additional protection.
Leonard A. Aplet, CFA, has co-managed Columbia
Fixed Income Securities Fund since January 1988
and has been with the advisor and its predecessors
since 1987.
/s/ Leonard A. Aplet
Richard R. Cutts, CFA, has co-managed the fund
since December 2002 and has been with the advisor
and its predecessors since 1994.
/s/ Richard R. Cutts
Investing in fixed-income securities offers the potential for attractive current
income and total returns but also involves certain risks. The value and return
of your investment may fluctuate as a result of changes in interest rates; the
financial strength of issuers of lower-rated bonds; foreign, political and
economic developments; and changes in currency exchange rates.
34
Sidebar:
PERFORMANCE OF A $10,000 INVESTMENT 02/24/99 - 02/29/04 ($)
SALES CHARGE WITHOUT WITH
-----------------------------------
Class A 13,068 12,446
-----------------------------------
Class B 12,941 12,841
-----------------------------------
Class C 12,954 12,954
-----------------------------------
Class D 12,996 12,867
-----------------------------------
Class Z 13,122 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 the original cost. Please visit www.columbiafunds.com for
daily and most recent month-end performance updates.
PERFORMANCE INFORMATION_________________________________________________________
COLUMBIA NATIONAL MUNICIPAL BOND FUND
VALUE OF A $10,000 INVESTMENT 02/24/99 - 02/29/04
(MOUNTAIN CHART)
CLASS A CLASS A
SHARES SHARES LEHMAN
WITHOUT WITH BROTHERS
SALES SALES MUNICIPAL
CHARGE CHARGE BOND INDEX
------ ------ ----------
02/1999 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 12625.00
12302.00 11717.00 12996.00
12694.00 12091.00 12931.00
12585.00 11987.00 13065.00
12694.00 12091.00 13174.00
12803.00 12195.00 13249.00
12851.00 12240.00 13450.00
02/2004 13068.00 12446.00
The above illustration assumes a $10,000 investment made on February 24, 1999,
and reinvestment of income and capital gains distributions. In addition, the
graph and table do not reflect a deduction of the taxes that a shareholder would
pay on fund distributions or the redemption of fund shares. The Lehman Brothers
Municipal Bond Index is an unmanaged index that tracks the performance of the
municipal bond market. Unlike the fund, indices are not investments, 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 February 28, 1999.
AVERAGE ANNUAL TOTAL RETURN AS OF 02/29/04 (%)
SHARE CLASS A B C D Z
- ---------------------------------------------------------------------------------------------------------------
INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 02/24/99
- ---------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- ---------------------------------------------------------------------------------------------------------------
6-month (cumulative) 6.28 1.23 5.89 0.89 6.00 5.00 6.07 4.04 6.41
- ---------------------------------------------------------------------------------------------------------------
1-year 6.04 1.00 5.26 0.26 5.37 4.37 5.62 3.61 6.38
- ---------------------------------------------------------------------------------------------------------------
5-year 5.64 4.60 5.43 5.10 5.45 5.45 5.52 5.31 5.72
- ---------------------------------------------------------------------------------------------------------------
Life 5.49 4.46 5.28 5.12 5.30 5.30 5.37 5.16 5.57
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/03 (%)
SHARE CLASS A B C D Z
- -----------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- -----------------------------------------------------------------------------------------------------
6-month (cumulative) 1.09 -3.71 0.71 -4.21 0.80 -0.19 0.87 -1.15 1.19
- -----------------------------------------------------------------------------------------------------
1-year 4.86 -0.12 4.09 -0.91 4.17 3.17 4.43 2.44 5.21
- -----------------------------------------------------------------------------------------------------
Life 5.22 4.17 5.03 4.69 5.05 5.05 5.11 4.90 5.30
All results shown assume reinvestment of distributions. 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%, and thereafter - 0%. Class C
has a CDSC of 1% which is applicable for the first year only. Class D has a
sales charge of 1% and 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, the 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. The returns for class
C include the returns of class B prior to 10/13/03, the date on which class C
was initially offered by the fund. The returns shown for class C also include
the performance of class Z prior to the inception of class B (11/01/02). 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, C, and D would have been lower.
35
Sidebar:
SUMMARY
o FOR THE SIX-MONTH PERIOD THAT ENDED FEBRUARY 29, 2004, THE FUND'S CLASS A
SHARES RETURNED 6.28% WITHOUT SALES CHARGE.
o THE FUND'S RETURN WAS SLIGHTLY LESS THAN THE RETURN FOR ITS BENCHMARK, THE
LEHMAN BROTHERS MUNICIPAL BOND INDEX, AND THE AVERAGE FOR ITS PEER GROUP, THE
LIPPER GENERAL MUNICIPAL DEBT FUNDS CATEGORY.
o ALTHOUGH THE FUND'S FOCUS ON MUNICIPAL BONDS WITH LONGER INTERMEDIATE
MATURITIES HELPED GENERATE A STRONG ABSOLUTE RETURN, WE BELIEVE THAT ITS
SHORTER DURATION OVERALL ACCOUNTED FOR A SLIGHT SHORTFALL RELATIVE TO ITS
BENCHMARK AND PEER GROUP. THE FUND'S INVESTMENTS IN NON-RATED BONDS ALSO
AIDED ITS RETURN.
[Illustration of 2 arrows pointing up]
LEHMAN BROTHERS
MUNICIPAL BOND
CLASS A SHARES INDEX
6.28% 6.52%
OBJECTIVE
Seeks a high level of income
exempt from federal income tax
TOTAL NET ASSETS
$16.1 million
NET ASSET VALUE PER SHARE AS OF 02/29/04 ($)
Class A 10.48
---------------------------
Class B 10.48
---------------------------
Class C 10.48
---------------------------
Class D 10.48
---------------------------
Class Z 10.48
DISTRIBUTIONS DECLARED PER SHARE 09/01/03 - 02/29/04 ($)
Class A 0.26
---------------------------
Class B 0.22
---------------------------
Class C 0.20
---------------------------
Class D 0.24
---------------------------
Class Z 0.27
PORTFOLIO MANAGER'S REPORT______________________________________________________
COLUMBIA NATIONAL MUNICIPAL BOND FUND
For the six-month period ended February 29, 2004, Columbia National Municipal
Bond Fund class A shares returned 6.28% without sales charge. It fell just short
of the return on its benchmark, the Lehman Brothers Municipal Bond Index, which
was 6.52% over the same period. The fund also trailed the average return of the
Lipper General Municipal Debt Funds Category, which was 6.44%.1 Our focus on
municipal bonds with intermediate maturities at the longer end of the range as
well as non-rated bonds helped the fund's return. A slightly shorter duration
[see sidebar on next page] overall modestly hampered relative returns as
interest rates trended down.
MORE FAVORABLE ENVIRONMENT FOR MUNICIPAL BONDS
After a period of volatile performance in the summer of 2003, municipal bonds
rebounded during the six months covered by this report. Although economic growth
was strong, inflation remained in check because of weak job growth and excess
capacity in the manufacturing sector. With little likelihood of a near-term rise
in interest rates, bond yields drifted lower and bond prices moved higher. The
combination of sluggish job growth and federal tax cuts lowered revenues to
state and local governments, leading to heavier-than-usual issuance of municipal
bonds in 2003. Demand for muni bonds remained strong, although added supply put
pressure on the prices of existing bonds.
FOCUS ON LONGER BONDS AND INCREASED GEOGRAPHIC DIVERSIFICATION
The fund continued to concentrate on high-quality issues diversified nationally
across both states and sectors. We focused on muni bonds with maturities between
10 and 20 years. This structure benefited performance, as interest rates for
longer maturity bonds dropped more than those for shorter maturity munis. Since
bond prices tend to move up as interest rates move down, prices on longer
maturity bonds did better than those on shorter maturity bonds.
The fund's non-rated muni bonds did well in an environment where investors were
willing to take on more risk for higher returns. We trimmed some of our
non-rated holdings and shifted the proceeds into higher-quality bonds that
helped increase the fund's geographic diversification. As part of our
diversification effort, we also reduced the fund's exposure to Oregon and
Illinois bonds from approximately 27% to 22% of net assets.
1 Lipper Inc., a widely respected data provider in the industry, calculates an
average total return for mutual funds with similar investment objectives as
the fund.
36
Sidebar:
PORTFOLIO QUALITY AS OF 02/29/04 (%)
Aaa 60.1
--------------------------------
Aa 16.8
--------------------------------
A 5.8
--------------------------------
BBB 1.0
--------------------------------
Non Rated 12.2
--------------------------------
Net Cash & equivalents 4.1
Ratings shown represent the highest rating assigned to a particular bond by one
of the nationally-recognized rating agencies: Standard and Poor's Corporation,
Moody's Investors Service, Inc. or Fitch Investors Service, Inc.
TOP 10 STATES AS OF 02/29/04 (%)
Washington 13.8
--------------------------------
Oregon 11.1
--------------------------------
Illinois 10.7
--------------------------------
Michigan 5.9
--------------------------------
Indiana 5.2
--------------------------------
Texas 4.5
--------------------------------
Tennessee 4.1
--------------------------------
New York 3.6
--------------------------------
Wisconsin 3.4
--------------------------------
Alaska 3.1
Your fund is actively managed and the composition of its portfolio will change
over time. Portfolio composition and holdings discussed are calculated as a
percentage of net assets.
MATURITY BREAKDOWN AS OF 02/29/04 (%)
0-1 YEARS 1.1
--------------------------------
1-3 YEARS 1.7
--------------------------------
3-5 YEARS 3.2
--------------------------------
5-7 YEARS 5.5
--------------------------------
7-10 YEARS 23.6
--------------------------------
10-15 YEARS 50.2
--------------------------------
15-20 YEARS 8.9
--------------------------------
20-25 YEARS 1.7
--------------------------------
Net cash & equivalents 4.1
Portfolio quality and maturity breakdown are calculated as a percentage of total
investments including short-term obligations.
ABOUT DURATION
Duration is a measure, expressed in years, of interest-rate sensitivity. It is
similar to maturity, but because it takes into consideration the entire stream
of future principal and interest payments and how long it will take to collect
them, it is a more complex and more accurate measure of a fund's exposure to
changing interest rates.
Because we are active duration managers, we tend to use duration as a tactical
tool to anticipate or respond to interest rate changes. Because bond prices and
interest rates move in opposite directions, we lower duration when we expect
interest rates to rise and we raise duration when we expect interest rates to
fall. This adjustment provides the potential to benefit performance. If we are
wrong and interest rates rise after we lengthen duration, or fall after we
shorten duration, fund performance could be hurt.
________________________________________________________________________________
COLUMBIA NATIONAL MUNICIPAL BOND FUND
POTENTIAL FOR IMPROVING MUNICIPAL BOND ENVIRONMENT
Our outlook is for a more stable environment in the municipal bond market for
the period ahead. Low mortgage rates and steady real estate prices should
continue to support the housing market and consumer spending despite weak job
growth. If economic growth remains solid, state and local governments can expect
tax revenues to move higher. This, in turn, would aid balance sheets and slow
credit downgrades. With less financial pressure, states and local governments
would also be able to reduce issuance, creating a better environment for
existing bonds. The presidential election is a wildcard, as the candidates' tax
policies would likely have different effects on state and local revenues and the
creation of additional investments with tax incentives.
Going forward, we plan to focus the fund on the longer end of the intermediate
maturity range, targeting issues with 8- to 20-year maturities. We think this
part of the market represents the best return opportunities in an environment
with the potential for volatile or rising interest rates. We also intend to
reduce the fund's already small position in bonds that are subject to the
alternative minimum tax.
Susan Sanderson has managed Columbia National
Municipal Bond Fund since December 2003 and has
been with the advisor and its predecessors since
1985.
/s/ Susan Sanderson
Tax-exempt investing offers current tax-free income, but it also involves
certain risks. The value of the fund shares will be affected by interest rate
changes and the creditworthiness of issues held in the funds. Interest income
from certain tax-exempt bonds may be subject to the federal alternative minimum
tax for individuals and corporations.
37
Sidebar:
PERFORMANCE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04 ($)
SALES CHARGE WITHOUT WITH
-----------------------------------
Class A 17,195 16,378
-----------------------------------
Class B 17,027 17,027
-----------------------------------
Class C 17,046 17,046
-----------------------------------
Class D 17,112 16,935
-----------------------------------
Class Z 17,288 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 the original cost. Please visit www.columbiafunds.com for
daily and most recent month-end performance updates.
PERFORMANCE INFORMATION_________________________________________________________
COLUMBIA OREGON MUNICIPAL BOND FUND
VALUE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04
(MOUNTAIN CHART)
CLASS A CLASS A LEHMAN
SHARES SHARES BROTHERS
WITHOUT WITH GENERAL
SALES SALES OBLIGATION
CHARGE CHARGE BOND INDEX
------ ------ ----------
03/1994 10000.00 9525.00 10000.00
9642.00 9184.00 9632.00
9693.00 9233.00 9736.00
9762.00 9298.00 9811.00
9715.00 9254.00 9752.00
9858.00 9390.00 9905.00
9894.00 9424.00 9948.00
9764.00 9300.00 9809.00
9643.00 9185.00 9667.00
9486.00 9036.00 9516.00
9675.00 9216.00 9684.00
9907.00 9437.00 9913.00
10127.00 9646.00 10175.00
10234.00 9748.00 10314.00
10245.00 9758.00 10320.00
10497.00 9998.00 10628.00
10413.00 9918.00 10556.00
10503.00 10004.00 10678.00
10636.00 10131.00 10814.00
10707.00 10199.00 10883.00
10833.00 10318.00 11007.00
10983.00 10461.00 11163.00
11047.00 10522.00 11251.00
11111.00 10583.00 11360.00
11055.00 10530.00 11308.00
10939.00 10420.00 11182.00
10894.00 10377.00 11143.00
10887.00 10370.00 11125.00
10996.00 10473.00 11238.00
11088.00 10561.00 11343.00
11089.00 10562.00 11342.00
11218.00 10685.00 11480.00
11330.00 10792.00 11614.00
11507.00 10960.00 11830.00
11461.00 10916.00 11782.00
11490.00 10945.00 11814.00
11582.00 11032.00 11922.00
11460.00 10915.00 11768.00
11535.00 10987.00 11860.00
11670.00 11116.00 12036.00
11775.00 11216.00 12166.00
12075.00 11502.00 12481.00
11998.00 11428.00 12372.00
12124.00 11548.00 12513.00
12184.00 11605.00 12581.00
12241.00 11659.00 12642.00
12418.00 11828.00 12821.00
12538.00 11942.00 12953.00
12522.00 11928.00 12964.00
12512.00 11918.00 12975.00
12470.00 11878.00 12907.00
12651.00 12050.00 13120.00
12679.00 12076.00 13167.00
12708.00 12104.00 13197.00
12900.00 12287.00 13406.00
13060.00 12439.00 13584.00
13037.00 12418.00 13587.00
13076.00 12455.00 13631.00
13110.00 12488.00 13676.00
13276.00 12645.00 13856.00
13173.00 12548.00 13785.00
13181.00 12555.00 13790.00
13220.00 12592.00 13828.00
13099.00 12477.00 13750.00
12913.00 12300.00 13548.00
12964.00 12348.00 13601.00
12852.00 12242.00 13521.00
12859.00 12248.00 13533.00
12726.00 12122.00 13417.00
12853.00 12243.00 13553.00
12762.00 12156.00 13468.00
12683.00 12081.00 13418.00
12790.00 12182.00 13552.00
13056.00 12435.00 13826.00
12985.00 12368.00 13756.00
12905.00 12292.00 13683.00
13217.00 12589.00 14036.00
13397.00 12760.00 14221.00
13600.00 12954.00 14424.00
13528.00 12886.00 14352.00
13676.00 13026.00 14503.00
13765.00 13111.00 14604.00
14073.00 13404.00 14949.00
14233.00 13557.00 15111.00
14273.00 13595.00 15156.00
14389.00 13705.00 15289.00
14233.00 13557.00 15132.00
14386.00 13702.00 15285.00
14476.00 13789.00 15379.00
14676.00 13979.00 15598.00
14912.00 14204.00 15849.00
14872.00 14166.00 15814.00
15061.00 14346.00 15977.00
14888.00 14181.00 15836.00
14712.00 14013.00 15710.00
14952.00 14242.00 15967.00
15127.00 14408.00 16162.00
14855.00 14149.00 15853.00
15146.00 14426.00 16180.00
15241.00 14517.00 16269.00
15421.00 14688.00 16451.00
15628.00 14885.00 16653.00
15812.00 15061.00 16843.00
16158.00 15391.00 17185.00
15863.00 15109.00 16907.00
15742.00 14994.00 16824.00
16052.00 15290.00 17154.00
15990.00 15230.00 17125.00
16237.00 15466.00 17361.00
16224.00 15454.00 17394.00
16338.00 15562.00 17505.00
16725.00 15931.00 17892.00
16633.00 15843.00 17806.00
16039.00 15277.00 17215.00
16144.00 15377.00 17375.00
16630.00 15840.00 17872.00
16508.00 15724.00 17752.00
16681.00 15889.00 17898.00
16818.00 16019.00 18025.00
16882.00 16080.00 18115.00
02/2004 17195.00 16378.00 18395.00
The above illustration assumes a $10,000 investment made on March 1, 1994 and
reinvestment of income and capital gains distributions. In addition, the graph
and table do not reflect a deduction of the taxes that a shareholder would pay
on fund distributions or the redemption of fund shares. 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 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 02/29/04 (%)
SHARE CLASS A B C D Z
- ---------------------------------------------------------------------------------------------------------------
INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 07/02/84
- ---------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- ---------------------------------------------------------------------------------------------------------------
6-month (cumulative) 6.49 1.43 6.09 1.09 6.21 5.21 6.28 4.23 6.65
- ---------------------------------------------------------------------------------------------------------------
1-year 5.87 0.84 5.06 0.06 5.18 4.18 5.48 3.44 6.26
- ---------------------------------------------------------------------------------------------------------------
5-year 5.47 4.45 5.27 4.94 5.29 5.29 5.37 5.15 5.59
- ---------------------------------------------------------------------------------------------------------------
10-year 5.57 5.06 5.47 5.47 5.48 5.48 5.52 5.41 5.63
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/03 (%)
SHARE CLASS A B C D Z
- ------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- ------------------------------------------------------------------------------------------------------
6-month (cumulative) 1.11 -3.70 0.71 -4.19 0.79 -0.19 0.91 -1.07 1.29
- ------------------------------------------------------------------------------------------------------
1-year 4.76 -0.21 3.96 -1.02 4.05 3.05 4.38 2.35 5.16
- ------------------------------------------------------------------------------------------------------
5-year 5.11 4.10 4.93 4.60 4.95 4.95 5.02 4.81 5.22
- ------------------------------------------------------------------------------------------------------
10-year 5.18 4.67 5.09 5.09 5.10 5.10 5.14 5.03 5.23
All results shown assume reinvestment of distributions. 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%, and thereafter - 0%. Class C
has a CDSC of 1% which is applicable for the first year only. Class D has a
sales charge of 1% and 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, the 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. The returns for class
C include the returns of class B prior to 10/13/03, the date on which class C
was initially offered by the fund. The returns shown for class C also include
the performance of class Z prior to the inception of class B (11/01/02). 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, C, and D would have been lower.
38
Sidebar:
SUMMARY
o FOR THE SIX-MONTH PERIOD THAT ENDED FEBRUARY 29, 2004, THE FUND'S CLASS A
SHARES RETURNED 6.49% WITHOUT SALES CHARGE.
o THE FUND'S RETURN WAS HIGHER THAN ITS BENCHMARK, THE LEHMAN BROTHERS GENERAL
OBLIGATION BOND INDEX, AND THE AVERAGE RETURN FOR ITS PEER GROUP, THE LIPPER
OREGON MUNICIPAL DEBT FUNDS CATEGORY.
o THE FUND'S STRONG PERFORMANCE WAS THE RESULT OF OUR CONCENTRATION ON
MUNICIPAL BONDS WITH INTERMEDIATE MATURITIES, WHICH DID BETTER THAN BONDS
WITH EITHER LONG OR SHORT MATURITIES.
[Illustration of 2 arrows pointing up]
LEHMAN BROTHERS
GENERAL OBLIGATION
CLASS A SHARES BOND INDEX
6.49% 5.90%
OBJECTIVE
Seeks a high level of income
exempt from federal and
Oregon income tax
TOTAL NET ASSETS
$486.4 million
NET ASSET VALUE PER SHARE AS OF 02/29/04 ($)
Class A 12.66
---------------------------
Class B 12.66
---------------------------
Class C 12.66
---------------------------
Class D 12.66
---------------------------
Class Z 12.66
DISTRIBUTIONS DECLARED PER SHARE 09/01/03 - 02/29/04 ($)
Class A 0.38
---------------------------
Class B 0.33
---------------------------
Class C 0.30
---------------------------
Class D 0.35
---------------------------
Class Z 0.40
PORTFOLIO MANAGER'S REPORT______________________________________________________
COLUMBIA OREGON MUNICIPAL BOND FUND
For the six-month period ended February 29, 2004, Columbia Oregon Municipal Bond
Fund class A shares returned 6.49% without sales charge. This was higher than
the fund's benchmark, the Lehman Brothers General Obligation Bond Index, which
returned 5.90%. The fund also beat its peer group, the Lipper Oregon Municipal
Debt Funds Category, which returned an average of 5.73%.1 The fund's strong
performance resulted from its focus on bonds with intermediate maturities, which
did better than bonds with either long or short maturities over the period.
A FAVORABLE ENVIRONMENT FOR MUNICIPAL BONDS
After a period of volatile performance in the summer of 2003, municipal bonds
rebounded during the six months covered by this report. Although economic growth
was strong, inflation remained in check because of weak job growth and excess
capacity in the manufacturing sector. With little likelihood of a near-term rise
in interest rates, bond yields drifted lower and bond prices moved higher. The
combination of sluggish job growth and federal tax cuts lowered revenues to
state and local governments, leading to heavier-than-usual issuance of municipal
bonds nationwide.
In Oregon, 2003 muni bond issuance was 60% higher than the previous year.
Oregon's economy, which relied heavily on the technology industry in the `90s,
remained slightly behind the rest of the country, with higher unemployment and
continued budget shortfalls. A recent ballot initiative to cover part of the
budget deficit failed, forcing the state to make cuts to balance its 2004-2005
budget and weakening its credit position.
During the period, yields on bonds with intermediate maturities dropped more
than bonds with short or long maturities. The fund's concentration in the
intermediate part of the market benefited performance, as prices on intermediate
maturity issues appreciated more than longer or shorter maturity issues.
The fund also benefited from its investments in hospital and non-rated bonds.
Hospital bonds performed well, as the financial outlook improved for many
issuers. The fund's non-rated bonds did well as investors became more willing to
take on added risk for higher returns.
Certain securities detracted from performance. Multi-family housing bonds hurt
performance as low mortgage rates favored individual home ownership over rental
housing, which made it difficult for issuers to maintain occupancy levels. In
addition, a decline in tourism over the last few years led to cash flow
shortfalls at the Oregon Coast Aquarium. We continue to work with the Aquarium
to resolve these issues or seek alternatives to enhance the value of the
outstanding bonds.
1 Lipper Inc., a widely respected data provider in the industry, calculates an
average total return for mutual funds with similar investment objectives as
the fund.
39
Sidebar:
PORTFOLIO QUALITY AS OF 02/29/04 (%)
AAA 39.8
--------------------------------
AA 36.9
--------------------------------
A 7.1
--------------------------------
BBB 4.3
--------------------------------
Non rated 10.0
--------------------------------
Net cash & equivalents 1.9
Ratings shown represent the highest rating assigned to a particular bond by one
of the nationally-recognized rating agencies: Standard and Poor's Corporation,
Moody's Investors Service, Inc. or Fitch Investors Service, Inc.
PORTFOLIO COMPOSITION AS OF 02/29/04 (%)
Revenue 34.0
----------------------------------------------
Insured revenue 20.8
----------------------------------------------
General obligations 17.8
----------------------------------------------
Insured general obligations 13.5
----------------------------------------------
Other bonds 6.2
----------------------------------------------
State of Oregon general obligations 4.4
----------------------------------------------
CASH & cash equivalents,
net receivables & payables 2.3
----------------------------------------------
PRE-refunded bond 0.8
----------------------------------------------
U.S. territories bonds 0.2
HOLDINGS DISCUSSED IN THIS REPORT AS OF 02/29/04 (%)
OREGON COAST AQUARIUM
(OREGON ST HEALTH HSG EDL) 0.1
MATURITY BREAKDOWN AS OF 02/29/04 (%)
0-3 Years 1.4
--------------------------------
3-5 Years 2.0
--------------------------------
5-7 Years 8.6
--------------------------------
7-10 Years 23.1
--------------------------------
10-15 Years 38.9
--------------------------------
15-20 Years 13.5
--------------------------------
20-25 Years 4.5
--------------------------------
25+ Years 6.1
--------------------------------
Net Cash & Equivalents 1.9
Portfolio quality and maturity breakdown are calculated as a percentage of total
investments including short-term obligations.
Your fund is actively managed and the composition of its portfolio will change
over time. Portfolio composition and holdings discussed are calculated as a
percentage of net assets.
________________________________________________________________________________
COLUMBIA OREGON MUNICIPAL BOND FUND
POTENTIAL FOR GRADUALLY IMPROVING ENVIRONMENT
Our outlook calls for increased stability in the municipal bond market. Despite
high unemployment, low mortgage rates and steady real estate prices have helped
housing prices and consumer spending remain strong. If economic growth remains
solid, state and local governments can expect tax revenues to move higher. This,
in turn, would aid balance sheets and slow credit downgrades. With less
financial pressure, states and local governments would also be able to reduce
issuance, creating a better environment for existing bonds. In Oregon
specifically, we believe revenue streams are slowly starting to pick up. Near
term the state may continue to have budget problems, which would affect credit
ratings. However, we expect Oregon's municipal market to benefit from a healthy,
although lower, level of issuance and continued strong demand.
We expect to focus on the longer end of the intermediate maturity range, which
we think offers the best opportunity in a gradually improving environment. In an
effort to enhance tax-free returns to shareholders, we intend to reduce the
fund's exposure to bonds that are subject to the alternative minimum tax. Our
goal is also to de-emphasize exposure to the multi-family housing sector and
pare back on non-rated bonds. We expect to invest the proceeds in high-quality
essential services bonds, including water, sewer and school bonds.
Photo of: Brian Mcgreevy
Brian McGreevy has managed the Columbia Oregon
Municipal Bond Fund since December 2003 and has
been with the advisor and its predecessors
since 1994.
/s/ Brian McGreevy
Tax-exempt investing offers current tax-free income, but it also involves
certain risks. The value of the fund shares will be affected by interest rate
changes and the creditworthiness of issues held in the funds. Single-state
municipal bond funds pose additional risks due to limited geographical
diversification. Interest income from certain tax-exempt bonds may be subject to
the federal alternative minimum tax for individuals and corporations.
40
Sidebar:
PERFORMANCE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04 ($)
SALES CHARGE WITHOUT WITH
-----------------------------------
Class A 19,903 18,966
-----------------------------------
Class B 19,681 19,681
-----------------------------------
Class C 19,675 19,675
-----------------------------------
Class D 19,729 19,532
-----------------------------------
Class Z 19,983 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 the original cost. Please visit www.columbiafunds.com for
daily and most recent month-end performance updates.
PERFORMANCE INFORMATION_________________________________________________________
COLUMBIA HIGH YIELD FUND
VALUE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04
(MOUNTAIN CHART)
CLASS A CLASS A MERRILL
SHARES SHARES LYNCH US
WITHOUT WITH HIGH YIELD,
SALES SALES CASH PAY
CHARGE CHARGE ONLY INDEX
------ ------ ----------
03/1994 10000.00 9525.00 10000.00
9695.00 9234.00 9674.00
9527.00 9075.00 9561.00
9606.00 9150.00 9526.00
9632.00 9175.00 9562.00
9691.00 9231.00 9629.00
9752.00 9289.00 9695.00
9801.00 9335.00 9691.00
9812.00 9346.00 9715.00
9703.00 9242.00 9633.00
9803.00 9337.00 9740.00
9956.00 9483.00 9877.00
10201.00 9716.00 10185.00
10293.00 9804.00 10327.00
10524.00 10024.00 10568.00
10790.00 10278.00 10898.00
10865.00 10349.00 10981.00
11015.00 10491.00 11106.00
11034.00 10510.00 11174.00
11213.00 10680.00 11301.00
11361.00 10821.00 11382.00
11491.00 10945.00 11493.00
11676.00 11121.00 11678.00
11838.00 11276.00 11863.00
11877.00 11313.00 11880.00
11743.00 11185.00 11848.00
11726.00 11169.00 11854.00
11737.00 11179.00 11940.00
11770.00 11211.00 12011.00
11857.00 11294.00 12093.00
12082.00 11508.00 12217.00
12291.00 11707.00 12480.00
12426.00 11836.00 12617.00
12687.00 12085.00 12872.00
12777.00 12170.00 12971.00
12890.00 12278.00 13071.00
13086.00 12464.00 13254.00
12888.00 12276.00 13107.00
13040.00 12421.00 13257.00
13353.00 12719.00 13524.00
13521.00 12879.00 13730.00
13885.00 13226.00 14059.00
13873.00 13214.00 14036.00
14059.00 13391.00 14269.00
14046.00 13379.00 14363.00
14206.00 13531.00 14499.00
14399.00 13715.00 14637.00
14634.00 13939.00 14855.00
14720.00 14021.00 14916.00
14812.00 14108.00 15044.00
14886.00 14179.00 15115.00
14932.00 14223.00 15221.00
15038.00 14324.00 15297.00
15221.00 14498.00 15384.00
14617.00 13923.00 14719.00
14876.00 14169.00 14749.00
14804.00 14101.00 14507.00
15293.00 14566.00 15167.00
15297.00 14571.00 15172.00
15486.00 14750.00 15322.00
15400.00 14669.00 15205.00
15584.00 14843.00 15336.00
15694.00 14949.00 15575.00
15492.00 14756.00 15468.00
15444.00 14710.00 15439.00
15428.00 14696.00 15462.00
15342.00 14613.00 15304.00
15325.00 14597.00 15246.00
15328.00 14600.00 15156.00
15578.00 14838.00 15329.00
15661.00 14917.00 15408.00
15581.00 14841.00 15331.00
15595.00 14854.00 15345.00
15506.00 14769.00 15130.00
15577.00 14837.00 15135.00
15568.00 14828.00 14968.00
15895.00 15140.00 15224.00
16038.00 15276.00 15334.00
16309.00 15534.00 15521.00
16309.00 15534.00 15431.00
16172.00 15404.00 14979.00
15941.00 15183.00 14510.00
16382.00 15604.00 14825.00
16944.00 16139.00 15708.00
17086.00 16275.00 15957.00
16998.00 16190.00 15746.00
16957.00 16151.00 15574.00
17067.00 16256.00 15873.00
16917.00 16113.00 15546.00
17121.00 16308.00 15787.00
17344.00 16520.00 15940.00
16666.00 15874.00 14919.00
17238.00 16419.00 15357.00
17689.00 16849.00 15856.00
17470.00 16640.00 15744.00
17575.00 16740.00 15832.00
17415.00 16588.00 15680.00
17578.00 16743.00 16053.00
17661.00 16822.00 16308.00
17626.00 16788.00 16220.00
17178.00 16362.00 15067.00
16893.00 16090.00 14467.00
17155.00 16340.00 14829.00
17088.00 16276.00 14592.00
17066.00 16255.00 14469.00
17547.00 16713.00 15332.00
17663.00 16824.00 15565.00
17816.00 16970.00 16013.00
17957.00 17104.00 16220.00
18266.00 17398.00 16640.00
18681.00 17793.00 17575.00
18696.00 17807.00 17765.00
18924.00 18025.00 18250.00
18564.00 17682.00 17989.00
18688.00 17801.00 18224.00
19094.00 18187.00 18711.00
19308.00 18391.00 19093.00
19426.00 18503.00 19356.00
19635.00 18703.00 19805.00
19824.00 18882.00 20114.00
02/2004 19903.00 18966.00 20108.00
The above illustration assumes a $10,000 investment made on March 1, 1994, and
reinvestment of income and capital gains distributions. In addition, the graph
and table do not reflect a deduction of the taxes that a shareholder would pay
on fund distributions or the redemption of fund shares. The Merrill Lynch US
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.
AVERAGE ANNUAL TOTAL RETURN AS OF 02/29/04 (%)
SHARE CLASS A B C D Z
- ---------------------------------------------------------------------------------------------------------------
INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 10/01/93
- ---------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- ---------------------------------------------------------------------------------------------------------------
6-month (cumulative) 6.48 1.46 6.06 1.06 6.03 5.03 6.15 4.05 6.60
- ---------------------------------------------------------------------------------------------------------------
1-year 10.81 5.55 9.89 4.89 9.85 8.85 10.11 7.96 11.10
- ---------------------------------------------------------------------------------------------------------------
5-year 5.26 4.23 5.02 4.72 5.01 5.01 5.07 4.86 5.34
- ---------------------------------------------------------------------------------------------------------------
10-year 7.13 6.61 7.01 7.01 7.00 7.00 7.03 6.92 7.17
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/03 (%)
SHARE CLASS A B C D Z
- ------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- ------------------------------------------------------------------------------------------------------
6-month (cumulative) 3.75 -1.14 3.32 -1.68 3.28 2.28 3.42 1.37 3.87
- ------------------------------------------------------------------------------------------------------
1-year 11.16 5.85 10.23 5.23 10.19 9.19 10.45 8.42 11.49
- ------------------------------------------------------------------------------------------------------
5-year 5.12 4.10 4.91 4.61 4.90 4.90 4.95 4.74 5.19
- ------------------------------------------------------------------------------------------------------
10-year 7.10 6.57 6.99 6.99 6.99 6.99 7.01 6.91 7.14
All results shown assume reinvestment of distributions. The "with sales charge"
returns include the maximum 4.75% charge for class A shares and 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%, and thereafter - 0%. Class C
has a CDSC of 1% which is applicable for the first year only. Class D has a
sales charge of 1% and 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, the 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. The returns for Class
C include the returns of Class B prior to 10/13/2003, the date on which class C
was initially offered by the fund. The returns shown for Class C also include
the performance of Class Z prior to the inception of Class B (11/01/02). 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, C and D would have been lower.
41
Sidebar:
SUMMARY
o FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 29, 2004, THE FUND'S CLASS A SHARES
RETURNED 6.48% WITHOUT SALES CHARGE.
o THE FUND'S RETURN WAS LESS THAN ITS BENCHMARK, THE MERRILL LYNCH US HIGH
YIELD, CASH PAY ONLY INDEX.
o THE FUND TRAILED ITS BENCHMARK PRIMARILY BECAUSE OF ITS RELATIVELY
CONSERVATIVE POSITIONING IN A PERIOD WHEN MORE SPECULATIVE SECURITIES
OUTPERFORMED.
[Illustration of 2 arrows pointing up]
MERRILL LYNCH US
HIGH YIELD, CASH
CLASS A SHARES PAY ONLY INDEX
6.48% 10.32%
OBJECTIVE
Seeks a high level of income
with capital appreciation as
a secondary goal
TOTAL NET ASSETS
$1,878.0 million
NET ASSET VALUE PER SHARE AS OF 02/29/04 ($)
Class A 8.77
--------------------------
Class B 8.77
--------------------------
Class C 8.77
--------------------------
Class D 8.77
--------------------------
Class Z 8.77
DISTRIBUTIONS DECLARED PER SHARE 09/01/03 - 02/29/04 ($)
Class A 0.26
--------------------------
Class B 0.23
--------------------------
Class C 0.18
--------------------------
Class D 0.24
--------------------------
Class Z 0.27
PORTFOLIO MANAGER'S REPORT______________________________________________________
COLUMBIA HIGH YIELD FUND
For the six-month period ended February 29, 2004, Columbia High Yield Fund class
A shares returned 6.48% without sales charge. The fund lagged the Merrill Lynch
US High Yield, Cash Pay Only Index, which returned 10.32%. The fund's relative
performance was hurt by its emphasis on the higher-quality segment of the
high-yield marketplace. The fund generally holds no Caa-rated bonds, which
constitute approximately 15% of the index. These ultra low-quality bonds have
outperformed B- and Ba-rated bonds for more than a year. The fund suffered from
its underweight in industries that are dominated by companies with Caa
ratings--specifically, electric utilities, telecom and airlines. The fund's
performance was also held back by its overweight positions in health care and
gaming, two sectors that lagged the overall market.
LOWER QUALITY BONDS PREVAILED
The market's preference for lower-rated securities during the period can be
traced to several factors. Early in the period, lower-quality bonds enjoyed a
substantial yield advantage. As yield-hungry investors poured money into lower
quality bonds, companies were able to refinance their debt on advantageous terms
and bankruptcy rates began to decline from record levels. Finally, the emergence
of a genuine economic recovery in the third quarter of 2003 gave investors hope
that many struggling companies would be able to improve their competitive
positions. Yet, the overall credit quality of the high-yield market actually
declined as measured by the rating agencies (S&P and Moody's) because many more
companies were downgraded than upgraded.
REDUCED CABLE EXPOSURE AND ADDED TO SATELLITE TELEVISION PROVIDERS
The composition of the fund was relatively unchanged during the period. However,
we reduced our commitment to the cable sector by selling our positions in
Cablevision and Mediacom, which, in our judgment, no longer represented good
values. From an operating perspective, we have been concerned that cable as a
group has been losing market share to satellite TV, especially in rural markets.
In an effort to participate in this trend, we purchased bonds of satellite dish
company, Echostar DBS to supplement our existing position in DirecTV Holdings.
42
Sidebar:
PORTFOLIO QUALITY AS OF 02/29/04 (%)
Baa 4.1
---------------------------
Ba 54.4
---------------------------
B 38.9
---------------------------
Caa 2.6
Portfolio quality is calculated as a percentage of total investments.
Ratings shown represent the highest rating assigned to a particular bond by one
of the nationally recognized rating agencies: Standard and Poor's Corporation,
Moody's Investors Service, Inc. or Fitch Investors Service, Inc.
TOP 5 SECTORS AS OF 02/29/04 (%)
Energy 10.3
---------------------------
Health care 9.4
---------------------------
Casinos & gaming 7.4
---------------------------
Cable TV 5.5
---------------------------
Services 4.9
HOLDINGS DISCUSSED IN THIS REPORT AS OF 02/29/04 (%)
Echostar DBS 1.8
---------------------------
DirecTV Holdings 1.4
MATURITY BREAKDOWN AS OF 02/29/04 (%)
0-3 Years 6.5
---------------------------
3-5 Years 14.7
---------------------------
5-10 Years 76.3
---------------------------
10+ Years 2.5
Your fund is actively managed and the composition of its portfolio will change
over time. Portfolio composition and holdings discussed are calculated as a
percentage of net assets.
________________________________________________________________________________
COLUMBIA HIGH YIELD FUND
PREPARED FOR HIGHER INTEREST RATES
Although we believe that a combination of GDP growth and low inflation have the
potential to extend the favorable environment for high-yield securities into
2004, we believe that the market's advances in 2003 already reflect much of this
improvement. If the economic recovery proves unsustainable because it has been
built on a combination of factors that may have run their course--historically
low interest rates, massive tax cuts and substantial budget deficits--we would
enjoy an advantage in having maintained a conservative posture for the fund. The
fund's focus on quality hurt relative performance last year, but the yield
advantage of low-quality bonds has already contracted sharply. If the economy is
stronger than we expect, the fund should benefit from having a
shorter-than-average maturity relative to its benchmark, a defensive stance
designed to cushion the fund against the possibility of higher interest rates.
Photo of: Jeffry L. Rippey
Jeffry L. Rippey, CFA, has managed or co-managed
Columbia High Yield Fund since October 1993 and
has been with the advisor and its predecessors
since 1981.
/s/ Jeffry L. Rippey
Investing in high-yield securities offers the potential for high current income
and attractive total return, but involves certain risks. Lower-rated bond risks
include default of the issuer, rising interest rates and risk associated with
investing in securities of foreign and emerging markets, including currency
exchange rate fluctuations and economic and political change.
43
Sidebar:
PERFORMANCE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04 ($)
SALES CHARGE WITHOUT
------------------------
Class Z 14,792
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 the original cost. Please visit www.columbiafunds.com for
daily and most recent month-end performance updates.
PERFORMANCE INFORMATION_________________________________________________________
COLUMBIA DAILY INCOME COMPANY
VALUE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04
(MOUNTAIN CHART)
CONSUMER
CLASS Z PRICE
SHARES INDEX
------ -----
03/1994 10000.00 10000.00
10074.00 10055.00
10171.00 10158.00
10283.00 10205.00
10417.00 10287.00
10563.00 10375.00
10707.00 10423.00
10846.00 10471.00
10983.00 10560.00
11113.00 10676.00
11249.00 10724.00
11385.00 10813.00
11522.00 10881.00
11665.00 10915.00
11815.00 10963.00
11964.00 11011.00
12116.00 11039.00
12270.00 11101.00
12427.00 11142.00
12580.00 11183.00
12722.00 11217.00
12862.00 11332.00
13007.00 11393.00
13164.00 11475.00
13339.00 11571.00
13526.00 11679.00
13735.00 11782.00
13943.00 11871.00
14141.00 11987.00
14301.00 12116.00
14425.00 12103.00
14513.00 12096.00
14564.00 12124.00
14609.00 12259.00
14652.00 12321.00
14690.00 12361.00
14719.00 12484.00
14744.00 12511.00
14762.00 12586.00
14775.00 12580.00
02/2004 14792.00 12693.00
The above illustration assumes a $10,000 investment made on March 1, 1994, and
reinvestment of income and capital gains distributions. In addition, the graph
and table do not reflect a deduction of the taxes that a shareholder would pay
on fund distributions or the redemption of fund shares. 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.
AVERAGE ANNUAL TOTAL RETURN AS OF 02/29/04 (%)
CONSUMER PRICE
CLASS Z INDEX (INFLATION)
- ------------------------------------------------------
6-Month (Cumulative) 0.17 0.87
- ------------------------------------------------------
1-Year 0.46 1.69
- ------------------------------------------------------
5-Year 3.06 2.51
- ------------------------------------------------------
10-Year 3.99 2.41
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/03 (%)
CONSUMER PRICE
CLASS Z INDEX (INFLATION)
- ------------------------------------------------------
6-Month (Cumulative) 0.19 0.33
- ------------------------------------------------------
1-Year 0.52 1.88
- ------------------------------------------------------
5-Year 3.20 2.37
- ------------------------------------------------------
10-Year 4.03 2.37
All results shown assume reinvestment of distributions.
44
Sidebar:
SUMMARY
o FOR THE SIX-MONTH PERIOD THAT ENDED FEBRUARY 29, 2004, THE FUND'S CLASS Z
SHARES RETURNED 0.17%.
o THE FUND'S RETURN WAS EQUAL TO THAT OF THE LIPPER MONEY MARKET FUNDS CATEGORY
AVERAGE.
o YIELDS ON ALL SHORT-TERM FIXED-INCOME SECURITIES WERE LOW THROUGHOUT THE
PERIOD.
[Illustration of 2 arrows pointing up]
CONSUMER PRICE
CLASS Z SHARES INDEX (INFLATION)
0.17% 0.87%
OBJECTIVE
Seeks a high level of income consistent with the
maintenance of liquidity and the preservation of capital
by investing primarily in high quality money market securities.
TOTAL NET ASSETS
$749.7 million
NET ASSET VALUE PER SHARE AS OF 02/29/04 ($)
Class Z 1.00
PORTFOLIO MANAGER'S REPORT______________________________________________________
COLUMBIA DAILY INCOME COMPANY
For the six-month period ended February 29, 2004, Columbia Daily Income Company
class Z shares returned 0.17%. The Lipper Money Market Funds Category also
averaged 0.17% for the period.1
The Federal Reserve Board lowered a key short-term interest rate--the fed funds
rate--to 1.0% in June of 2003, and continued to maintain this historically low
rate in an effort to stimulate economic growth. As a result, yields on all
short-term fixed-income securities were low throughout the period.
With the year-over-year inflation rate approximating 2% during 2003, real
returns on money-market funds (returns after factoring in inflation) have been
in negative territory, a development that has caused considerable frustration
for money-market investors. However, the Fed's actions have been deliberate and
consistent with textbook economics: Negative real short-term returns provide an
incentive for consumers to spend and for businesses to invest. The net
expectation of this stimulus is heightened economic activity. And indeed, that's
what the economy delivered during the six-month period covered by this report.
Third quarter GDP growth was reported at 7.2%, then revised to 8.2%, the fastest
pace of growth since the first quarter of 1984. Fourth-quarter growth, was
lower, but nonetheless respectable at 4.1%. These advances occurred despite
higher prices for oil and other commodities and suggested that a solid economic
recovery was underway.
Unfortunately, the employment picture has not followed the same upward
trajectory. The industrial sector still carries considerable excess capacity,
and although the overall unemployment rate has declined from a high point of
6.4% in June 2003, non-farm payroll increases have been well below the levels
that ordinarily prevail at this stage of the economic cycle.
Until excess capacity is whittled down and the economy begins to add jobs in
meaningful numbers, we do not believe we are likely to see the sort of
inflationary pressures that might induce the Federal Reserve to raise short-term
rates. The chance of a rate increase prior to November is low, given the
realities of presidential election year politics. Prevailing
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.
45
Sidebar:
PORTFOLIO HIGHLIGHTS AS OF 02/29/04
Seven day current yield 0.36%
-------------------------------------
Seven day effective yield 0.36%
-------------------------------------
Average days to maturity 34
________________________________________________________________________________
COLUMBIA DAILY INCOME COMPANY
investor opinion, as reflected in the federal funds futures market, indicates
the potential for a short-term rate increase toward the end of the year,
possibly preceded by a rise in longer-term interest rates. The bottom line is
that investors in money market funds are likely to experience negative real
returns for months to come. However, the role of a money market fund in your
portfolio should be examined in light of your need for diversification and
stability as well as for its return potential.
Leonard Aplet has managed the fund since
1988 and has been with the advisor and
its predecessors since 1987.
/s/ Leonard Aplet
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.
46
FINANCIAL STATEMENTS____________________________________________________________
FEBRUARY 29, 2004 COLUMBIA FUNDS
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 AND LIABILITIES This statement details the fund's assets, 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 IN NET ASSETS This statement demonstrates how the fund's 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 FINANCIAL STATEMENTS These notes disclose the organizational background of 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 risks and contingencies.
47
INVESTMENT PORTFOLIO____________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA COMMON STOCK FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - 96.9%
CONSUMER DISCRETIONARY - 11.2%
AUTO COMPONENTS - 0.5%
Dana Corp. 100,500 2,149,695
-----------
Auto Components Total 2,149,695
HOTELS, RESTAURANTS & LEISURE - 0.7%
Royal Caribbean Cruises Ltd. 69,975 3,096,394
-----------
Hotels, Restaurants & Leisure Total 3,096,394
INTERNET & CATALOG RETAIL - 0.7%
eBay, Inc. (a) 39,240 2,702,066
-----------
Internet & Catalog Retail Total 2,702,066
MEDIA - 5.5%
Comcast Corp., Class A (a) 48,942 1,470,218
Gannett Co., Inc. 48,250 4,162,528
Lamar Advertising Co. (a) 32,700 1,298,190
Time Warner, Inc. (a) 218,800 3,774,300
Tribune Co. 80,850 4,037,649
Viacom, Inc., Class B 96,825 3,723,890
Walt Disney Co. 169,800 4,504,794
-----------
Media Total 22,971,569
MULTILINE RETAIL - 3.0%
Kohl's Corp. (a) 105,725 5,444,838
Target Corp. 156,150 6,864,354
-----------
Multiline Retail Total 12,309,192
TEXTILES, APPAREL & LUXURY GOODS - 0.8%
NIKE, Inc., Class B 44,675 3,272,444
-----------
Textiles, Apparel & Luxury Goods Total 3,272,444
-----------
CONSUMER DISCRETIONARY TOTAL 46,501,360
CONSUMER STAPLES - 9.8%
BEVERAGES - 1.8%
Constellation Brands, Inc., Class A (a) 33,925 1,075,422
PepsiCo, Inc. 121,975 6,330,502
-----------
Beverages Total 7,405,924
FOOD & STAPLES RETAILING - 4.2%
Wal-Mart Stores, Inc. 290,750 17,317,070
-----------
Food & Staples Retailing Total 17,317,070
FOOD PRODUCTS - 0.3%
Hershey Foods Corp. 17,075 1,415,518
-----------
Food Products Total 1,415,518
HOUSEHOLD PRODUCTS - 1.1%
Colgate-Palmolive Co. 38,510 2,135,380
Procter & Gamble Co. 26,080 2,673,461
-----------
Household Products Total 4,808,841
SHARES VALUE ($)
- ----------------------------------------------------------------------
PERSONAL PRODUCTS - 0.9%
Alberto-Culver Co., Class B 38,710 1,590,207
Avon Products, Inc. 14,075 993,695
Estee Lauder Companies, Inc., Class A 23,510 1,001,526
-----------
Personal Products Total 3,585,428
TOBACCO - 1.5%
Altria Group, Inc. 108,975 6,271,511
-----------
Tobacco Total 6,271,511
-----------
CONSUMER STAPLES TOTAL 40,804,292
ENERGY - 3.8%
ENERGY EQUIPMENT & SERVICES - 0.6%
National-Oilwell, Inc. (a) 40,450 1,201,770
Schlumberger Ltd. 9,790 631,357
Smith International, Inc. (a) 12,675 642,242
-----------
Energy Equipment & Services Total 2,475,369
OIL & GAS - 3.2%
Apache Corp. 19,518 803,556
ConocoPhillips 37,175 2,560,242
Exxon Mobil Corp. 226,457 9,549,692
Pioneer Natural Resources Co. (a) 13,020 418,202
-----------
Oil & Gas Total 13,331,692
-----------
ENERGY TOTAL 15,807,061
FINANCIALS - 19.6%
CAPITAL MARKETS - 5.4%
A.G. Edwards, Inc. 47,750 1,826,438
Bank of New York Co., Inc. 117,025 3,861,825
Goldman Sachs Group, Inc. 50,550 5,351,728
J.P. Morgan Chase & Co. 102,035 4,185,476
Merrill Lynch & Co., Inc. 103,700 6,347,477
Morgan Stanley 14,100 842,616
-----------
Capital Markets Total 22,415,560
COMMERCIAL BANKS - 2.4%
Bank of America Corp. (b) 15,005 1,229,210
Bank One Corp. 132,575 7,156,398
Wachovia Corp. 34,075 1,634,578
-----------
Commercial Banks Total 10,020,186
CONSUMER FINANCE - 2.6%
American Express Co. 151,250 8,079,775
MBNA Corp. 103,375 2,825,239
-----------
Consumer Finance Total 10,905,014
DIVERSIFIED FINANCIAL SERVICES - 4.3%
Ameritrade Holding Corp. (a) 53,625 873,015
CIT Group, Inc. 28,875 1,139,696
Citigroup, Inc. 311,089 15,635,333
-----------
Diversified Financial Services Total 17,648,044
See Accompanying Notes to Financial Statements.
48
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA COMMON STOCK FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
FINANCIALS - (CONTINUED)
INSURANCE - 4.3%
Allstate Corp. (a) 67,055 3,059,720
American International Group, Inc. 97,537 7,217,738
Assurant, Inc. (a) 66,325 1,707,206
Chubb Corp. 41,200 2,924,376
Prudential Financial, Inc. 68,275 3,167,277
-----------
Insurance Total 18,076,317
THRIFTS & MORTGAGE FINANCE - 0.6%
Fannie Mae 31,225 2,338,752
-----------
Thrifts & Mortgage Finance Total 2,338,752
-----------
FINANCIALS TOTAL 81,403,873
HEALTH CARE - 10.2%
BIOTECHNOLOGY - 1.3%
Amgen, Inc. (a) 58,582 3,721,714
Gilead Sciences, Inc. (a) 28,675 1,554,472
-----------
Biotechnology Total 5,276,186
HEALTH CARE EQUIPMENT & SUPPLIES - 0.5%
Boston Scientific Corp. (a) 54,625 2,231,431
-----------
Health Care Equipment & Supplies Total 2,231,431
HEALTH CARE PROVIDERS & SERVICES - 1.7%
Aetna, Inc. 43,050 3,478,010
Cardinal Health, Inc. 38,575 2,516,247
Henry Schein, Inc. (a) 15,050 1,076,075
-----------
Health Care Providers & Services Total 7,070,332
PHARMACEUTICALS - 6.7%
Eli Lilly and Co. 19,850 1,467,709
Johnson & Johnson 122,425 6,599,932
Pfizer, Inc. 368,064 13,489,546
Shire Pharmaceuticals
Group PLC, ADR (a) 68,900 2,130,388
Teva Pharmaceutical Industries
Ltd., ADR 61,305 3,984,825
-----------
Pharmaceuticals Total 27,672,400
-----------
HEALTH CARE TOTAL 42,250,349
INDUSTRIALS - 14.0%
AEROSPACE & DEFENSE - 0.5%
Boeing Co. 50,200 2,177,174
-----------
Aerospace & Defense Total 2,177,174
AIR FREIGHT & LOGISTICS - 1.7%
United Parcel Service, Inc., Class B 101,025 7,135,396
-----------
Air Freight & Logistics Total 7,135,396
SHARES VALUE ($)
----------------------------------------------------------------------
AIRLINES - 0.2%
AMR Corp. (a) 61,225 930,620
-----------
Airlines Total 930,620
COMMERCIAL SERVICES & SUPPLIES - 3.4%
Allied Waste Industries, Inc. (a) 136,950 1,729,678
Avery Dennison Corp. 32,725 2,073,783
Manpower, Inc. 62,650 2,803,588
Republic Services, Inc. 82,350 2,160,864
Waste Management, Inc. 190,675 5,434,238
-----------
Commercial Services & Supplies Total 14,202,151
ELECTRICAL EQUIPMENT - 0.5%
Emerson Electric Co. 34,200 2,136,816
-----------
Electrical Equipment Total 2,136,816
INDUSTRIAL CONGLOMERATES - 4.4%
3M Co. 53,425 4,168,218
General Electric Co. 439,900 14,305,548
-----------
Industrial Conglomerates Total 18,473,766
MACHINERY - 2.3%
Caterpillar, Inc. 39,200 2,969,400
Dover Corp. 150 5,879
ITT Industries, Inc. 57,250 4,322,375
Pall Corp. 77,075 2,017,053
-----------
Machinery Total 9,314,707
ROAD & RAIL - 1.0%
Canadian National Railway Co. 67,475 3,995,870
-----------
Road & Rail Total 3,995,870
-----------
INDUSTRIALS TOTAL 58,366,500
INFORMATION TECHNOLOGY - 20.8%
COMMUNICATIONS EQUIPMENT - 4.0%
Avaya, Inc. (a) 49,000 840,350
Cisco Systems, Inc. (a) 186,990 4,319,469
Emulex Corp. (a) 62,710 1,453,618
Motorola, Inc. 116,000 2,140,200
Nortel Networks Corp. (a) 186,750 1,490,265
QLogic Corp. (a) 62,575 2,615,635
QUALCOMM, Inc. 55,350 3,511,958
-----------
Communications Equipment Total 16,371,495
COMPUTERS & PERIPHERALS - 2.0%
Dell, Inc. (a) 47,050 1,536,182
International Business Machines Corp. 45,125 4,354,562
Seagate Technology (a) 143,925 2,489,902
-----------
Computers & Peripherals Total 8,380,646
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.3%
Flextronics International Ltd. (a) 76,725 1,388,722
-----------
Electronic Equipment & Instruments Total 1,388,722
See Accompanying Notes to Financial Statements.
49
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA COMMON STOCK FUND
SHARES VALUE ($)
- ---------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
INFORMATION TECHNOLOGY - (CONTINUED)
INTERNET SOFTWARE & SERVICES - 1.2%
Check Point Software Technologies
Ltd. (a) 105,050 2,418,251
Yahoo!, Inc. (a) 58,125 2,580,750
-----------
Internet Software & Services Total 4,999,001
IT SERVICES - 0.4%
Cognizant Technology Solutions
Corp.(a) 33,375 1,583,310
-----------
IT Services Total 1,583,310
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 7.0%
Advanced Micro Devices, Inc. (a) 108,500 1,627,500
Applied Micro Circuits Corp. (a) 288,150 1,861,449
Broadcom Corp., Class A 55,125 2,236,972
Intel Corp. 149,150 4,359,654
Linear Technology Corp. 85,900 3,435,141
Marvell Technology Group Ltd. (a) 37,550 1,709,652
Microchip Technology, Inc. 64,075 1,826,138
National Semiconductor Corp. (a) 55,075 2,167,752
NVIDIA Corp. (a) 66,450 1,478,512
Silicon Laboratories, Inc. (a) 46,925 2,645,162
Taiwan Semiconductor Manufacturing
Co., Ltd., ADR (a) 272,596 2,832,272
Texas Instruments, Inc. 52,950 1,622,918
Xilinx, Inc. (a) 30,550 1,284,322
-----------
Semiconductors & Semiconductor Equipment Total 29,087,444
SOFTWARE - 5.9%
Citrix Systems, Inc. (a) 75,675 1,602,796
Computer Associates International, Inc. 64,825 1,721,752
Mercury Interactive Corp. (a) 54,950 2,667,273
Microsoft Corp. 434,200 11,506,300
Oracle Corp. (a) 315,440 4,062,867
Symantec Corp. (a) 46,125 1,897,582
VERITAS Software Corp. (a) 40,125 1,220,602
-----------
Software Total 24,679,172
-----------
INFORMATION TECHNOLOGY TOTAL 86,489,790
MATERIALS - 7.5%
CHEMICALS - 3.2%
Dow Chemical Co. 220,600 9,589,482
Praxair, Inc. 105,175 3,819,956
-----------
Chemicals Total 13,409,438
CONTAINERS & PACKAGING - 0.6%
Smurfit-Stone Container Corp. (a) 135,200 2,509,312
-----------
Containers & Packaging Total 2,509,312
SHARES VALUE ($)
- ----------------------------------------------------------------------
METALS & MINING - 2.7%
Alcan, Inc. 117,675 5,604,860
Alcoa, Inc. 148,625 5,568,979
-----------
Metals & Mining Total 11,173,839
PAPER & FOREST PRODUCTS - 1.0%
International Paper Co. 90,800 4,018,808
-----------
Paper & Forest Products Total 4,018,808
-----------
MATERIALS TOTAL 31,111,397
TOTAL COMMON STOCKS
(Cost of $323,565,260) 402,734,622
PREFERRED STOCK - 1.5%
CONSUMER DISCRETIONARY - 1.5%
MEDIA - 1.5%
News Corp., Ltd., ADR
(Cost of $5,277,680) 190,850 6,246,520
-----------
TOTAL INVESTMENTS - 98.4%
(COST OF $328,842,940) (C) 408,981,142
OTHER ASSETS & LIABILITIES, NET - 1.6% 6,601,626
NET ASSETS - 100.0% 415,582,768
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing.
(b) Investments in affiliates during the six months ended February 29, 2004:
Security Name: Bank of America Corp. (As a result of a merger effective
April 1, 2004, Bank of America Corp. became the parent company of the
Investment Advisor.)
Shares as of 08/31/03: 114,005
Shares sold: (99,000)
Shares as of 02/29/04: 15,005
Net realized gain or loss: $3,150,135
Dividend income earned: $ 121,328
Value at end of period: $1,229,210
(c) Cost for both financial statement and federal income tax purposes is the
same.
ACRONYM NAME
------- ----
ADR American Depositary Receipt
See Accompanying Notes to Financial Statements.
50
INVESTMENT PORTFOLIO____________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA GROWTH FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - 99.2%
CONSUMER DISCRETIONARY - 15.1%
HOTELS, RESTAURANTS & LEISURE - 0.5%
Yum! Brands, Inc. (a) 139,280 5,157,538
-----------
Hotels, Restaurants & Leisure Total 5,157,538
INTERNET & CATALOG RETAIL - 1.1%
eBay, Inc. (a) 155,500 10,707,730
-----------
Internet & Catalog Retail Total 10,707,730
MEDIA - 4.4%
Clear Channel Communications, Inc. 90,031 3,874,934
Omnicom Group, Inc. 111,700 9,137,060
Viacom, Inc., Class B 492,590 18,945,011
Walt Disney Co. 238,600 6,330,058
XM Satellite Radio Holdings, Inc.,
Class A (a) 160,800 3,936,384
-----------
Media Total 42,223,447
MULTILINE RETAIL - 2.1%
Kohl's Corp. (a) 190,800 9,826,200
Target Corp. 234,900 10,326,204
-----------
Multiline Retail Total 20,152,404
SPECIALTY RETAIL - 6.3%
Bed Bath & Beyond, Inc. (a) 273,060 11,162,693
Best Buy Co., Inc. 204,100 10,868,325
Chico's FAS, Inc. (a) 195,700 8,366,175
Home Depot, Inc. 326,000 11,837,060
Lowe's Companies, Inc. 320,300 17,936,800
-----------
Specialty Retail Total 60,171,053
TEXTILES, APPAREL & LUXURY GOODS - 0.7%
Coach, Inc. (a) 174,600 6,919,398
-----------
Textiles, Apparel & Luxury Goods Total 6,919,398
-----------
CONSUMER DISCRETIONARY TOTAL 145,331,570
CONSUMER STAPLES - 9.8%
BEVERAGES - 1.1%
PepsiCo, Inc. 208,340 10,812,846
-----------
Beverages Total 10,812,846
FOOD & STAPLES RETAILING - 4.8%
Costco Wholesale Corp. (a) 342,900 13,349,097
Sysco Corp. 204,110 8,092,962
Wal-Mart Stores, Inc. 413,190 24,609,596
-----------
Food & Staples Retailing Total 46,051,655
FOOD PRODUCTS - 0.7%
Bunge Ltd. 177,500 6,931,375
-----------
Food Products Total 6,931,375
SHARES VALUE ($)
- ----------------------------------------------------------------------
HOUSEHOLD PRODUCTS - 1.3%
Procter & Gamble Co. 118,060 12,102,331
-----------
Household Products Total 12,102,331
PERSONAL PRODUCTS - 0.8%
Alberto-Culver Co., Class B 182,745 7,507,165
-----------
Personal Products Total 7,507,165
TOBACCO - 1.1%
Altria Group, Inc. 182,800 10,520,140
-----------
Tobacco Total 10,520,140
-----------
CONSUMER STAPLES TOTAL 93,925,512
ENERGY - 1.4%
ENERGY EQUIPMENT & SERVICES - 1.4%
Noble Corp. (a) 98,250 3,988,950
Schlumberger Ltd. 147,500 9,512,275
-----------
Energy Equipment & Services Total 13,501,225
-----------
ENERGY TOTAL 13,501,225
FINANCIALS - 4.5%
CAPITAL MARKETS - 0.8%
Merrill Lynch & Co., Inc. 132,200 8,091,962
-----------
Capital Markets Total 8,091,962
COMMERCIAL BANKS - 0.8%
Charter One Financial, Inc. 202,000 7,316,440
-----------
Commercial Banks Total 7,316,440
CONSUMER FINANCE - 1.3%
American Express Co. 94,900 5,069,558
MBNA Corp. 286,500 7,830,045
-----------
Consumer Finance Total 12,899,603
DIVERSIFIED FINANCIAL SERVICES - 1.6%
Citigroup, Inc. 296,626 14,908,423
-----------
Diversified Financial Services Total 14,908,423
-----------
FINANCIALS TOTAL 43,216,428
HEALTH CARE - 19.7%
BIOTECHNOLOGY - 4.3%
Amgen, Inc. (a) 385,100 24,465,403
Gilead Sciences, Inc. (a) 223,900 12,137,619
Martek Biosciences Corp. (a) 79,200 4,709,232
-----------
Biotechnology Total 41,312,254
HEALTH CARE EQUIPMENT & SUPPLIES - 6.1%
Alcon, Inc. 165,100 10,378,186
Boston Scientific Corp. (a) 350,840 14,331,814
St. Jude Medical, Inc. (a) 166,700 12,110,755
See Accompanying Notes to Financial Statements.
51
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA GROWTH FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
HEALTH CARE - (CONTINUED)
HEALTH CARE EQUIPMENT & SUPPLIES - (CONTINUED)
Varian Medical Systems, Inc. (a) 125,500 10,509,370
Zimmer Holdings, Inc. (a) 147,300 11,141,772
-----------
Health Care Equipment & Supplies Total 58,471,897
HEALTH CARE PROVIDERS & SERVICES - 2.0%
Caremark Rx, Inc. (a) 596,900 19,255,994
-----------
Health Care Providers & Services Total 19,255,994
PHARMACEUTICALS - 7.3%
Pfizer, Inc. 1,290,233 47,287,040
Teva Pharmaceutical Industries
Ltd., ADR 356,023 23,141,495
-----------
Pharmaceuticals Total 70,428,535
-----------
HEALTH CARE TOTAL 189,468,680
INDUSTRIALS - 12.8%
AEROSPACE & DEFENSE - 1.0%
United Technologies Corp. 105,400 9,708,394
-----------
Aerospace & Defense Total 9,708,394
COMMERCIAL SERVICES & SUPPLIES - 1.3%
Cendant Corp. 543,400 12,335,180
-----------
Commercial Services & Supplies Total 12,335,180
INDUSTRIAL CONGLOMERATES - 9.4%
3M Co. 162,500 12,678,250
General Electric Co. 1,875,985 61,007,032
Tyco International Ltd. 580,350 16,580,600
-----------
Industrial Conglomerates Total 90,265,882
MACHINERY - 1.1%
ITT Industries, Inc. 139,800 10,554,900
-----------
Machinery Total 10,554,900
-----------
INDUSTRIALS TOTAL 122,864,356
INFORMATION TECHNOLOGY - 31.7%
COMMUNICATIONS EQUIPMENT - 5.7%
Avaya, Inc. (a) 39,000 668,850
Cisco Systems, Inc. (a) 1,469,675 33,949,492
QLogic Corp. (a) 86,700 3,624,060
QUALCOMM, Inc. 264,900 16,807,905
-----------
Communications Equipment Total 55,050,307
COMPUTERS & PERIPHERALS - 2.3%
Dell, Inc. (a) 379,490 12,390,348
EMC Corp. (a) 638,900 9,149,048
-----------
Computers & Peripherals Total 21,539,396
SHARES VALUE ($)
- ----------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.5%
Agilent Technologies, Inc. (a) 234,200 8,007,298
Flextronics International Ltd. (a) 326,400 5,907,840
-----------
Electronic Equipment & Instruments Total 13,915,138
INTERNET SOFTWARE & SERVICES - 0.6%
Yahoo!, Inc. (a) 129,800 5,763,120
-----------
Internet Software & Services Total 5,763,120
IT SERVICES - 1.5%
Cognizant Technology Solutions
Corp. (a) 126,600 6,005,904
Paychex, Inc. 257,100 8,270,907
-----------
IT Services Total 14,276,811
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 11.1%
ASML Holding NV, N.Y. Registered
Shares (a) 364,200 6,650,292
Broadcom Corp., Class A (a) 82,918 3,364,812
Intel Corp. 1,331,570 38,921,791
Linear Technology Corp. 113,700 4,546,863
Marvell Technology Group Ltd. (a) 92,400 4,206,972
Microchip Technology, Inc. 333,800 9,513,300
PMC-Sierra, Inc. (a) 163,500 3,253,650
Samsung Electronics Co., Ltd., GDR (b) 50,200 11,721,700
Silicon Laboratories, Inc. (a) 88,200 4,971,834
Taiwan Semiconductor Manufacturing
Co., Ltd., ADR (a) 675,366 7,017,053
Texas Instruments, Inc. 290,500 8,903,825
Xilinx, Inc. (a) 87,000 3,657,480
-----------
Semiconductors & Semiconductor Equipment Total 106,729,572
SOFTWARE - 9.0%
Amdocs Ltd. (a) 188,100 5,244,228
Electronic Arts, Inc. (a) 263,300 12,417,228
Mercury Interactive Corp. (a) 46,400 2,252,256
Microsoft Corp. 1,388,900 36,805,850
Oracle Corp. (a) 435,690 5,611,687
SAP AG, ADR 329,900 13,064,040
Symantec Corp. (a) 144,600 5,948,844
VERITAS Software Corp. (a) 176,800 5,378,256
-----------
Software Total 86,722,389
-----------
INFORMATION TECHNOLOGY TOTAL 303,996,733
MATERIALS - 3.1%
CHEMICALS - 1.5%
Praxair, Inc. 393,100 14,277,392
-----------
Chemicals Total 14,277,392
METALS & MINING - 1.6%
Alcoa, Inc. 413,300 15,486,351
-----------
Metals & Mining Total 15,486,351
-----------
MATERIALS TOTAL 29,763,743
See Accompanying Notes to Financial Statements.
52
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA GROWTH FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
TELECOMMUNICATION SERVICES - 1.1%
WIRELESS TELECOMMUNICATION SERVICES - 1.1%
American Tower Corp., Class A (a) 237,900 2,628,795
Crown Castle International Corp. (a) 268,060 3,230,123
Mobile Telesystems, ADR 20,600 2,209,350
VimpelCom, ADR (a) 25,300 2,147,717
-----------
Wireless Telecommunication Services Total 10,215,985
-----------
TELECOMMUNICATION SERVICES TOTAL 10,215,985
TOTAL COMMON STOCKS
(Cost of $749,255,950) 952,284,232
PREFERRED STOCK - 0.7%
CONSUMER DISCRETIONARY - 0.7%
MEDIA - 0.7%
News Corp., Ltd., ADR
(Cost of $6,912,438) 208,600 6,827,478
-----------
TOTAL INVESTMENTS - 99.9%
(COST OF $756,168,388) (C) 959,111,710
OTHER ASSETS & LIABILITIES, NET - 0.1% 1,080,635
NET ASSETS - 100.0% 960,192,345
NOTES TO INVESTMENT PORTFOLIO:
(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 February 29, 2004, the value
of this security amounted to $11,721,700, which represents 1.2% of net
assets.
(c) Cost for both financial statement and federal income tax purposes is the
same.
ACRONYM NAME
------- ----
ADR American Depositary Receipt
GDR Global Depositary Receipt
See Accompanying Notes to Financial Statements.
53
INVESTMENT PORTFOLIO____________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA INTERNATIONAL STOCK FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - 95.2%
CONSUMER DISCRETIONARY - 16.5%
AUTO COMPONENTS - 0.7%
Continental AG 87,000 3,579,608
-----------
Auto Components Total 3,579,608
AUTOMOBILES - 1.4%
Nissan Motor Co., Ltd. 212,000 2,354,908
Toyota Motor Corp. 155,300 5,361,548
-----------
Automobiles Total 7,716,456
HOTELS, RESTAURANTS & LEISURE - 2.1%
Accor SA 93,980 4,141,240
Compass Group PLC 605,360 4,139,988
InterContinental Hotels Group PLC 294,200 2,854,680
-----------
Hotels, Restaurants & Leisure Total 11,135,908
HOUSEHOLD DURABLES - 3.7%
Koninklijke (Royal) Philips
Electronics NV 230,300 7,027,002
Matsushita Electronic Industrial
Co., Ltd. 606,000 8,840,275
Sony Corp. 97,000 3,961,722
-----------
Household Durables Total 19,828,999
MEDIA - 4.8%
Dentsu, Inc. 670 3,405,220
JC Decaux SA (a) 116,700 2,347,649
News Corp., Ltd. 281,900 2,653,493
Pearson PLC 338,200 3,912,701
ProSiebenSat.1 Media AG 121,000 2,567,034
Reuters Group PLC 642,821 4,690,058
United Business Media PLC 260,600 2,691,556
WPP Group PLC 349,000 3,920,426
-----------
Media Total 26,188,137
MULTILINE RETAIL - 1.5%
Big C Supercenter Public Co., Ltd. 4,186,700 1,886,813
Next PLC 160,558 4,167,451
Seiyu Ltd. (a) 691,000 2,278,022
-----------
Multiline Retail Total 8,332,286
SPECIALTY RETAIL - 0.7%
Aoyama Trading Co., Ltd. 101,400 2,038,214
USS Co., Ltd. 24,370 1,792,043
-----------
Specialty Retail Total 3,830,257
TEXTILES, APPAREL & LUXURY GOODS - 1.6%
Burberry Group PLC 544,846 3,586,346
Puma AG 16,400 3,375,316
Sanyo Shokai Ltd. 319,000 1,808,251
-----------
Textiles, Apparel & Luxury Goods Total 8,769,913
-----------
CONSUMER DISCRETIONARY TOTAL 89,381,564
SHARES VALUE ($)
- ----------------------------------------------------------------------
CONSUMER STAPLES - 5.8%
BEVERAGES - 1.8%
Diageo PLC 400,638 5,569,546
Pernod-Ricard SA 32,150 3,962,008
-----------
Beverages Total 9,531,554
FOOD & STAPLES RETAILING - 0.9%
C.P. 7-Eleven Public Co., Ltd. (a) 750,000 1,288,988
Casino Guichard-Perrachon SA 36,470 3,631,917
-----------
Food & Staples Retailing Total 4,920,905
FOOD PRODUCTS - 1.1%
Nestle SA, Registered Shares 20,600 5,461,596
Thai Union Frozen Products Public
Co., Ltd. 930,400 639,613
-----------
Food Products Total 6,101,209
HOUSEHOLD PRODUCTS - 1.6%
Reckitt Benckiser PLC 322,760 8,467,913
-----------
Household Products Total 8,467,913
TOBACCO - 0.4%
Imperial Tobacco Group PLC 113,800 2,461,144
-----------
Tobacco Total 2,461,144
-----------
CONSUMER STAPLES TOTAL 31,482,725
ENERGY - 7.1%
OIL & GAS - 7.1%
BP PLC 110,318 890,830
BP PLC, ADR 244,230 12,016,116
EnCana Corp. 118,200 5,109,250
ENI S.p.A. 601,750 11,842,546
PTT Public Co., Ltd. 788,100 3,009,930
Total SA 31,375 5,755,703
-----------
Oil & Gas Total 38,624,375
-----------
ENERGY TOTAL 38,624,375
FINANCIALS - 23.8%
BANKS - 0.0%
Fortis Bank Nederland
Holding NV (a)(b)(c) 4,100 0
-----------
Banks Total 0
COMMERCIAL BANKS - 13.3%
Alpha Bank A.E. 117,780 3,577,580
Anglo Irish Bank Corp. PLC 206,000 3,527,107
Banca Intesa S.p.A. 810,900 3,025,769
Banco Popolare di Verona e Novara 211,600 3,670,521
Banco Santander Central Hispano SA 333,800 3,882,393
Barclays PLC 653,850 5,902,153
Credit Agricole SA 186,569 4,819,557
Credit Suisse Group 261,940 9,577,482
Erste Bank der oesterreichischen
Sparkassen AG 36,700 5,147,895
See Accompanying Notes to Financial Statements.
54
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA INTERNATIONAL STOCK FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
FINANCIALS - (CONTINUED)
COMMERCIAL BANKS - (CONTINUED)
Hansabank Ltd. 88,149 2,601,632
Kookmin Bank (a) 97,500 4,062,155
Royal Bank of Scotland Group PLC 255,071 8,110,396
Siam Commercial Bank Public Co.,
Ltd. (a) 3,333,600 3,989,286
Societe Generale 41,900 3,736,057
Standard Chartered PLC 147,322 2,551,097
UFJ Holdings, Inc. (a) 943 4,231,410
-----------
Commercial Banks Total 72,412,490
DIVERSIFIED FINANCIAL SERVICES - 2.5%
ING Groep NV 353,140 8,672,999
Nomura Holdings, Inc. 292,000 4,639,377
-----------
Diversified Financial Services Total 13,312,376
INSURANCE - 4.4%
Allianz AG (a) 74,200 9,283,866
Daido Life Insurance 650 2,023,809
Irish Life & Permanent PLC 127,100 2,069,919
Millea Holdings, Inc. 603 7,730,769
Mitsui Sumitomo Insurance Co. 322,000 2,830,769
-----------
Insurance Total 23,939,132
REAL ESTATE - 3.6%
Land and Houses Public Co.,
Ltd., NVDR 8,362,600 2,533,799
Mitsubishi Estate Co., Ltd. 658,000 7,664,615
Sumitomo Realty & Development
Co., Ltd. 158,000 1,538,040
Sun Hung Kai Properties Ltd. 798,000 7,842,424
-----------
Real Estate Total 19,578,878
-----------
FINANCIALS TOTAL 129,242,876
HEALTH CARE - 6.8%
HEALTH CARE EQUIPMENT & SUPPLIES - 2.5%
Olympus Corp. 73,000 1,520,833
Phonak Holding AG 63,100 1,687,927
ResMed, Inc. (a) 44,900 2,112,994
Smith & Nephew PLC 887,110 8,496,065
-----------
Health Care Equipment & Supplies Total 13,817,819
PHARMACEUTICALS - 4.3%
Chugai Pharmaceutical Co., Ltd. 399,500 5,893,722
Dr. Reddy's Laboratories Ltd., ADR 58,000 1,476,100
GlaxoSmithKline PLC 321,426 6,723,540
Novartis AG 112,480 4,980,615
Takeda Chemical Industries Ltd. 44,100 1,817,308
Teva Pharmaceutical Industries
Ltd., ADR 35,200 2,288,000
-----------
Pharmaceuticals Total 23,179,285
-----------
HEALTH CARE TOTAL 36,997,104
SHARES VALUE ($)
----------------------------------------------------------------------
INDUSTRIALS - 9.6%
BUILDING PRODUCTS - 0.8%
Wienerberger AG 128,332 4,067,860
-----------
Building Products Total 4,067,860
COMMERCIAL SERVICES & SUPPLIES - 2.2%
Capita Group PLC 1,205,597 6,152,773
Randstad Holding NV 205,218 6,026,077
-----------
Commercial Services & Supplies Total 12,178,850
CONSTRUCTION & ENGINEERING - 0.9%
Shimizu Corp. 586,000 2,618,755
Taisei Corp. 688,000 2,394,139
-----------
Construction & Engineering Total 5,012,894
ELECTRICAL EQUIPMENT - 2.4%
Nitto Denko Corp. 61,200 3,026,374
Siemens AG 131,700 10,198,231
-----------
Electrical Equipment Total 13,224,605
MACHINERY - 1.4%
Atlas Copco AB, Class B 151,700 4,979,481
Linde AG 49,400 2,607,125
-----------
Machinery Total 7,586,606
ROAD & RAIL - 0.5%
Tokyu Corp. 486,000 2,612,472
-----------
Road & Rail Total 2,612,472
TRADING COMPANIES & DISTRIBUTORS - 0.8%
Mitsubishi Corp. 413,000 4,077,051
-----------
Trading Companies & Distributors Total 4,077,051
TRANSPORTATION INFRASTRUCTURE - 0.6%
BAA PLC 334,720 3,279,083
-----------
Transportation Infrastructure Total 3,279,083
-----------
INDUSTRIALS TOTAL 52,039,421
INFORMATION TECHNOLOGY - 11.7%
COMMUNICATIONS EQUIPMENT - 0.5%
Nortel Networks Corp. (a) 355,190 2,840,246
-----------
Communications Equipment Total 2,840,246
ELECTRONIC EQUIPMENT & INSTRUMENTS - 2.9%
Celestica, Inc. (a) 131,400 2,258,576
Epcos AG (a) 91,000 2,179,283
Flextronics International Ltd. (a) 135,000 2,443,500
Hoya Corp. 25,700 2,412,317
Keyence Corp. 10,500 2,166,346
TDK Corp. 64,200 4,479,890
-----------
Electronic Equipment & Instruments Total 15,939,912
INTERNET SOFTWARE & SERVICES - 1.0%
Index Corp. 394 1,659,707
T-Online International AG (a) 257,500 3,525,179
-----------
Internet Software & Services Total 5,184,886
See Accompanying Notes to Financial Statements.
55
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA INTERNATIONAL STOCK FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
INFORMATION TECHNOLOGY - (CONTINUED)
IT SERVICES - 0.6%
Indra Sistemas SA 220,500 3,024,152
-----------
IT Services Total 3,024,152
OFFICE ELECTRONICS - 1.0%
Canon, Inc. 110,000 5,369,048
-----------
Office Electronics Total 5,369,048
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 5.2%
ARM Holdings PLC (a) 2,262,400 5,108,179
Nikon Corp. 259,000 3,194,808
Samsung Electronics Co., Ltd. 20,600 9,526,517
STMicroelectronics NV,
N.Y. Registered Shares 158,100 4,086,885
Taiwan Semiconductor
Manufacturing Co., Ltd., ADR (a) 245,200 2,547,628
Tokyo Electron Ltd. 67,300 4,061,419
-----------
Semiconductors & Semiconductor Equipment Total 28,525,436
SOFTWARE - 0.5%
Dassault Systemes SA 64,291 2,816,142
-----------
Software Total 2,816,142
-----------
INFORMATION TECHNOLOGY TOTAL 63,699,822
MATERIALS - 4.7%
CHEMICALS - 1.8%
BASF AG 56,900 3,039,158
MG Technologies AG 193,500 2,938,792
Shin-Etsu Chemical Co., Ltd. 32,800 1,276,557
Syngenta AG 37,300 2,599,236
-----------
Chemicals Total 9,853,743
CONSTRUCTION MATERIALS - 1.3%
Siam Cement Public Co., Ltd,
NVDR (a) 1,164,750 7,117,505
-----------
Construction Materials Total 7,117,505
METALS & MINING - 0.5%
BHP Billiton Ltd. 293,800 2,785,958
-----------
Metals & Mining Total 2,785,958
PAPER & FOREST PRODUCTS - 1.1%
Stora Enso Oyj, Class R 280,500 3,742,035
UPM-Kymmene Oyj 112,100 2,217,339
-----------
Paper & Forest Products Total 5,959,374
-----------
MATERIALS TOTAL 25,716,580
SHARES VALUE ($)
- ----------------------------------------------------------------------
TELECOMMUNICATION SERVICES - 7.2%
DIVERSIFIED TELECOMMUNICATION SERVICES - 5.1%
France Telecom SA (a) 120,000 3,320,047
Nippon Telegraph & Telephone Corp. 473 2,191,740
Portugal Telecom, SGPS, SA 465,140 5,270,682
Telecom Italia S.p.A. (a) 1,510,800 4,770,070
Telefonaktiebolaget LM Ericsson,
ADR (a) 214,600 6,227,692
Telefonica SA (a) 355,184 5,793,303
-----------
Diversified Telecommunication Services Total 27,573,534
WIRELESS TELECOMMUNICATION SERVICES - 2.1%
NTT DoCoMo, Inc. 2,058 4,278,077
Vodafone Group PLC 2,935,629 7,354,054
-----------
Wireless Telecommunication Services Total 11,632,131
-----------
TELECOMMUNICATION SERVICES TOTAL 39,205,665
UTILITIES - 2.0%
ELECTRIC UTILITIES - 2.0%
E.ON AG 53,900 3,659,190
National Grid Transco PLC 527,836 4,245,097
Public Power Corp. 97,900 2,631,635
-----------
Electric Utilities Total 10,535,922
-----------
UTILITIES TOTAL 10,535,922
TOTAL COMMON STOCKS
(Cost of $429,022,332) 516,926,054
SHORT-TERM OBLIGATION - 5.0% PAR ($)
- -----------------------------------------------------
Repurchase agreement with State
Street Bank & Trust Co., dated
02/27/04, due 03/01/04 at 0.930%,
collateralized by a U.S. Treasury
Note maturing 08/31/05, market
value $27,613,599 (repurchase
proceeds $27,072,098)
(Cost of $27,070,000) 27,070,000 27,070,000
-----------
TOTAL INVESTMENTS - 100.2%
(COST OF $456,092,332) (d) 543,996,054
OTHER ASSETS & LIABILITIES, NET - (0.2)% (1,124,739)
NET ASSETS - 100.0% 542,871,315
See Accompanying Notes to Financial Statements.
56
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA INTERNATIONAL STOCK FUND
NOTES TO INVESTMENT PORTFOLIO:
(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 February 29, 2004, 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 both financial statement and federal income tax purposes is the
same.
SUMMARY OF SECURITIES % OF TOTAL
BY COUNTRY VALUE INVESTMENTS
---------------------------------------------------------------
Japan $117,549,556 21.6%
United Kingdom 117,291,193 21.6
Germany 46,952,781 8.6
France 34,530,320 6.3
United States* 29,182,994 5.4
Netherlands 25,812,962 4.7
Switzerland 24,306,857 4.5
Italy 23,308,906 4.3
Thailand 20,465,933 3.8
South Korea 13,588,672 2.5
Spain 12,699,848 2.3
Sweden 11,207,173 2.1
Canada 10,208,072 1.9
Austria 9,215,754 1.7
Hong Kong 7,842,424 1.4
Greece 6,209,215 1.1
Finland 5,959,374 1.1
Ireland 5,597,026 1.0
Australia 5,439,452 1.0
Portugal 5,270,682 1.0
Estonia 2,601,632 0.5
Taiwan 2,547,628 0.5
Singapore 2,443,500 0.4
Israel 2,288,000 0.4
India 1,476,100 0.3
------------ ------------
$543,996,054 100.0%
============ ============
* Includes Short-Term Obligation.
Certain securities are listed by country of underlying exposure but may trade
predominately on other exchanges.
ACRONYM NAME
------- ----
ADR American Depositary Receipt
NVDR Non-Voting Depositary Receipt
See Accompanying Notes to Financial Statements.
57
INVESTMENT PORTFOLIO____________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA MID CAP GROWTH FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - 97.7%
CONSUMER DISCRETIONARY - 17.5%
AUTO COMPONENTS - 3.4%
Autoliv, Inc. 421,300 18,697,294
Dana Corp. 433,000 9,261,870
Gentex Corp. 218,700 8,914,212
-----------
Auto Components Total 36,873,376
HOTELS, RESTAURANTS & LEISURE - 2.1%
Harrah's Entertainment, Inc. 103,400 5,371,630
Hilton Hotels Corp. 334,500 5,362,035
MGM MIRAGE (a) 139,700 6,083,935
Outback Steakhouse, Inc. 126,550 6,123,754
-----------
Hotels, Restaurants & Leisure Total 22,941,354
HOUSEHOLD DURABLES - 2.1%
Garmin Ltd. 362,000 16,594,080
Harman International Industries, Inc. 69,200 5,396,908
-----------
Household Durables Total 21,990,988
INTERNET & CATALOG RETAIL - 1.1%
InterActiveCorp (a) 375,800 12,239,806
-----------
Internet & Catalog Retail Total 12,239,806
LEISURE EQUIPMENT & PRODUCTS - 0.7%
Brunswick Corp. 183,000 7,202,880
-----------
Leisure Equipment & Products Total 7,202,880
MEDIA - 2.5%
Cox Radio, Inc., Class A (a) 199,500 4,379,025
Univision Communications, Inc.,
Class A (a) 617,950 22,017,559
-----------
Media Total 26,396,584
MULTILINE RETAIL - 0.9%
Dollar Tree Stores, Inc. (a) 298,300 9,217,470
-----------
Multiline Retail Total 9,217,470
SPECIALTY RETAIL - 4.7%
Bed Bath & Beyond, Inc. (a) 356,700 14,581,896
CDW Corp. 204,900 14,174,982
Staples, Inc. (a) 290,600 7,619,532
Williams-Sonoma, Inc. (a) 437,600 13,998,824
-----------
Specialty Retail Total 50,375,234
-----------
CONSUMER DISCRETIONARY TOTAL 187,237,692
CONSUMER STAPLES - 0.6%
FOOD PRODUCTS - 0.6%
Dean Foods Co. (a) 168,400 6,114,604
-----------
Food Products Total 6,114,604
-----------
CONSUMER STAPLES TOTAL 6,114,604
SHARES VALUE ($)
- ----------------------------------------------------------------------
ENERGY - 6.5%
ENERGY EQUIPMENT & SERVICES - 3.7%
BJ Services Co. (a) 212,000 9,177,480
Nabors Industries Ltd. (a) 169,050 8,004,517
National-Oilwell, Inc. (a) 437,000 12,983,270
Patterson-UTI Energy, Inc. (a) 259,950 9,430,986
-----------
Energy Equipment & Services Total 39,596,253
OIL & GAS - 2.8%
Apache Corp. 195,844 8,062,897
Murphy Oil Corp. 170,100 10,670,373
XTO Energy, Inc. 366,700 10,942,328
-----------
Oil & Gas Total 29,675,598
-----------
ENERGY TOTAL 69,271,851
FINANCIALS - 1.6%
INSURANCE - 1.6%
Ambac Financial Group, Inc. 149,500 11,690,900
StanCorp Financial Group, Inc. 82,050 5,411,198
-----------
Insurance Total 17,102,098
-----------
FINANCIALS TOTAL 17,102,098
HEALTH CARE - 20.4%
BIOTECHNOLOGY - 2.3%
Amylin Pharmaceuticals, Inc. (a) 393,430 9,017,416
Gilead Sciences, Inc. (a) 88,200 4,781,322
ICOS Corp. (a) 279,700 10,706,916
-----------
Biotechnology Total 24,505,654
HEALTH CARE EQUIPMENT & SUPPLIES - 3.4%
Boston Scientific Corp. (a) 296,200 12,099,770
Kinetic Concepts, Inc. (a) 133,500 5,386,725
Varian Medical Systems, Inc. (a) 154,140 12,907,684
Zimmer Holdings, Inc. (a) 73,700 5,574,668
-----------
Health Care Equipment & Supplies Total 35,968,847
HEALTH CARE PROVIDERS & SERVICES - 8.6%
Anthem, Inc. (a) 112,150 9,639,292
Caremark Rx, Inc. (a) 576,150 18,586,599
Community Health Systems, Inc. (a) 390,280 10,947,354
DaVita, Inc. (a) 357,750 16,281,202
Health Management Associates, Inc. 200,000 4,458,000
Manor Care, Inc. 332,400 11,770,284
UnitedHealth Group, Inc. 190,000 11,780,000
WellPoint Health Networks, Inc. (a) 81,500 8,864,755
-----------
Health Care Providers & Services Total 92,327,486
PHARMACEUTICALS - 6.1%
Barr Pharmaceuticals, Inc. (a) 186,975 14,473,735
Elan Corp. PLC, ADR (a) 644,400 9,292,248
Endo Pharmaceuticals Holdings, Inc. (a) 367,000 8,907,090
IVAX Corp. (a) 437,500 9,738,750
See Accompanying Notes to Financial Statements.
58
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA MID CAP GROWTH FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
HEALTH CARE - (CONTINUED)
PHARMACEUTICALS - (CONTINUED)
Medicis Pharmaceutical Corp., Class A 375,000 14,763,750
Teva Pharmaceutical Industries
Ltd., ADR 132,600 8,619,000
-----------
Pharmaceuticals Total 65,794,573
-----------
HEALTH CARE TOTAL 218,596,560
INDUSTRIALS - 10.6%
COMMERCIAL SERVICES & SUPPLIES - 7.2%
Allied Waste Industries, Inc. (a) 948,200 11,975,766
ChoicePoint, Inc. (a) 302,790 11,403,071
Corporate Executive Board Co. (a) 197,700 9,859,299
Education Management Corp. (a) 417,400 13,360,974
Manpower, Inc. 250,700 11,218,825
Monster Worldwide, Inc. (a) 559,200 12,302,400
Robert Half International, Inc. (a) 317,600 7,136,472
-----------
Commercial Services & Supplies Total 77,256,807
ELECTRICAL EQUIPMENT - 1.6%
American Power Conversion Corp. 774,800 17,525,976
-----------
Electrical Equipment Total 17,525,976
MACHINERY - 1.0%
Donaldson Co., Inc. 192,800 10,995,384
-----------
Machinery Total 10,995,384
TRADING COMPANIES & DISTRIBUTORS - 0.8%
Fastenal Co. 172,700 8,367,315
-----------
Trading Companies & Distributors Total 8,367,315
-----------
INDUSTRIALS TOTAL 114,145,482
INFORMATION TECHNOLOGY - 39.2%
COMMUNICATIONS EQUIPMENT - 7.3%
3Com Corp. (a) 1,198,700 8,390,900
Avaya, Inc. (a) 698,200 11,974,130
Comverse Technology, Inc. (a) 1,047,725 20,661,137
Foundry Networks, Inc. (a) 426,700 10,070,120
Polycom, Inc. (a) 704,300 15,543,901
UTStarcom, Inc. (a) 350,900 11,625,668
-----------
Communications Equipment Total 78,265,856
COMPUTERS & PERIPHERALS - 1.2%
Lexmark International, Inc. (a) 149,740 12,322,105
-----------
Computers & Peripherals Total 12,322,105
ELECTRONIC EQUIPMENT & INSTRUMENTS - 6.3%
Agilent Technologies, Inc. (a) 509,900 17,433,481
Amphenol Corp., Class A (a) 289,500 17,905,575
Flextronics International Ltd. (a) 515,200 9,325,120
SHARES VALUE ($)
----------------------------------------------------------------------
Symbol Technologies, Inc. 487,500 8,297,250
Vishay Intertechnology, Inc. (a) 625,350 14,076,628
-----------
Electronic Equipment & Instruments Total 67,038,054
INTERNET SOFTWARE & SERVICES - 0.7%
Check Point Software Technologies
Ltd.(a) 350,300 8,063,906
-----------
Internet Software & Services Total 8,063,906
IT SERVICES - 1.5%
CheckFree Corp. (a) 287,800 8,354,834
DST Systems, Inc. (a) 169,700 7,595,772
-----------
IT Services Total 15,950,606
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 10.7%
Altera Corp. (a) 260,000 5,740,800
Amkor Technology, Inc. (a) 659,500 10,202,465
ARM Holdings PLC, ADR (a) 928,800 6,269,400
ASML Holding NV,
N.Y. Registered Shares (a) 798,300 14,576,958
Fairchild Semiconductor
International, Inc. (a) 500,300 12,907,740
Microchip Technology, Inc. 675,650 19,256,025
National Semiconductor Corp. (a) 212,000 8,344,320
PMC-Sierra, Inc. (a) 231,400 4,604,860
Taiwan Semiconductor
Manufacturing Co., Ltd., ADR (a) 1,194,156 12,407,281
Teradyne, Inc. (a) 494,430 12,187,700
United Microelectronics Corp.,
ADR (a) 1,449,600 7,552,416
-----------
Semiconductors & Semiconductor Equipment Total 114,049,965
SOFTWARE - 11.5%
Adobe Systems, Inc. 155,400 5,787,096
Amdocs Ltd. (a) 607,200 16,928,736
BEA Systems, Inc. (a) 595,200 8,213,760
BMC Software, Inc. (a) 523,500 10,260,600
Fair Isaac Corp. 280,000 16,699,200
Intuit, Inc. (a) 171,625 7,613,285
Mercury Interactive Corp. (a) 222,750 10,812,285
Novell, Inc. (a) 814,200 8,288,556
PeopleSoft, Inc. (a) 379,100 8,180,978
Siebel Systems, Inc. (a) 607,105 7,928,791
Symantec Corp. (a) 209,300 8,610,602
Synopsys, Inc. (a) 89,000 2,636,180
VERITAS Software Corp. (a) 378,450 11,512,449
-----------
Software Total 123,472,518
-----------
INFORMATION TECHNOLOGY TOTAL 419,163,010
MATERIALS - 0.5%
CHEMICALS - 0.5%
Potash Corp. of Saskatchewan, Inc. 65,600 5,425,120
-----------
Chemicals Total 5,425,120
-----------
MATERIALS TOTAL 5,425,120
See Accompanying Notes to Financial Statements.
59
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA MID CAP GROWTH FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
TELECOMMUNICATION SERVICES - 0.8%
WIRELESS TELECOMMUNICATION SERVICES - 0.8%
Nextel Partners, Inc., Class A (a) 645,400 8,274,028
-----------
Wireless Telecommunication Services Total 8,274,028
-----------
TELECOMMUNICATION SERVICES TOTAL 8,274,028
TOTAL COMMON STOCKS
(Cost of $826,638,797) 1,045,330,445
INVESTMENT MANAGEMENT COMPANY - 1.1%
iShares MSCI Japan Index Fund
(Cost of $10,785,166) 1,156,100 11,225,731
-----------
CONVERTIBLE PREFERRED STOCK - 0.0%
INFORMATION TECHNOLOGY - 0.0%
INTERNET SOFTWARE & SERVICES - 0.0%
Network Specialists, Inc.,
Series A (a)(b)(c)
(Cost of $3,000,000) 394,218 3,942
-----------
SHORT-TERM OBLIGATION - 1.9% PAR ($)
- ------------------------------------------------------
Repurchase agreement with State
Street Bank & Trust Co., dated
02/27/04, due 03/01/04 at 0.930%,
collateralized by a U.S. Treasury
Note maturing 08/15/12, market
value $21,233,260 (repurchase
proceeds $20,814,613)
(Cost of $20,813,000) 20,813,000 20,813,000
-----------
TOTAL INVESTMENTS - 100.7%
(COST OF $861,236,963) (d) 1,077,373,118
OTHER ASSETS & LIABILITIES, NET - (0.7)% (7,043,049)
NET ASSETS - 100.0% 1,070,330,069
NOTES TO INVESTMENT PORTFOLIO:
(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 February 29, 2004, the value
of this security amounted to $3,942, which represents less than 0.1% of net
assets.
(c) Represents fair value as determined in good faith under the direction of the
Board of Directors.
(d) Cost for both financial statement and federal income tax purposes is the
same.
ACRONYM NAME
------- ----
ADR American Depositary Receipt
See Accompanying Notes to Financial Statements.
60
INVESTMENT PORTFOLIO____________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA SMALL CAP GROWTH FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - 99.4%
CONSUMER DISCRETIONARY - 14.6%
AUTO COMPONENTS - 3.2%
Autoliv, Inc. 292,400 12,976,712
Gentex Corp. 171,550 6,992,378
Wabtec Corp. 321,500 5,095,775
-----------
Auto Components Total 25,064,865
HOTELS, RESTAURANTS & LEISURE - 3.7%
Fairmont Hotels & Resorts, Inc. 135,100 3,462,613
P.F. Chang's China Bistro, Inc. (a) 92,900 4,521,443
RARE Hospitality International, Inc. (a) 151,800 4,344,516
Ruby Tuesday, Inc. 262,600 8,319,168
Scientific Games Corp. (a) 188,900 3,194,299
WMS Industries, Inc. (a) 185,500 4,928,735
-----------
Hotels, Restaurants & Leisure Total 28,770,774
HOUSEHOLD DURABLES - 0.5%
Harman International Industries, Inc. 50,700 3,954,093
-----------
Household Durables Total 3,954,093
INTERNET & CATALOG RETAIL - 0.6%
Insight Enterprises, Inc. (a) 233,400 4,964,418
-----------
Internet & Catalog Retail Total 4,964,418
LEISURE EQUIPMENT & PRODUCTS - 0.2%
Nautilus Group, Inc. 73,800 1,205,892
-----------
Leisure Equipment & Products Total 1,205,892
MEDIA - 3.6%
Entercom Communications Corp. (a) 204,900 9,458,184
Entravision Communications Corp.,
Class A (a) 448,800 4,308,480
Getty Images, Inc. (a) 124,000 6,319,040
Radio One, Inc., Class D (a) 441,802 8,049,633
-----------
Media Total 28,135,337
SPECIALTY RETAIL - 2.3%
Advance Auto Parts, Inc. (a) 129,200 5,096,940
Aeropostale, Inc. (a) 90,200 3,093,860
Guitar Center, Inc. (a) 111,400 4,048,276
PETsMART, Inc. 221,700 6,016,938
-----------
Specialty Retail Total 18,256,014
TEXTILES, APPAREL & LUXURY GOODS - 0.5%
Columbia Sportswear Co. (a) 74,650 3,882,547
-----------
Textiles, Apparel & Luxury Goods Total 3,882,547
-----------
CONSUMER DISCRETIONARY TOTAL 114,233,940
CONSUMER STAPLES - 2.2%
FOOD PRODUCTS - 0.9%
SunOpta, Inc. (a) 669,300 6,833,553
-----------
Food Products Total 6,833,553
SHARES VALUE ($)
- ----------------------------------------------------------------------
PERSONAL PRODUCTS - 1.3%
NBTY, Inc. (a) 315,000 10,476,900
-----------
Personal Products Total 10,476,900
-----------
CONSUMER STAPLES TOTAL 17,310,453
ENERGY - 6.1%
ENERGY EQUIPMENT & SERVICES - 4.1%
Cal Dive International, Inc. (a) 144,700 3,508,975
Key Energy Services, Inc. (a) 581,000 7,855,120
National-Oilwell, Inc. (a) 322,600 9,584,446
Patterson-UTI Energy, Inc. (a) 161,300 5,851,964
Precision Drilling Corp. (a) 67,700 3,244,861
Varco International, Inc. (a) 99,500 1,982,040
-----------
Energy Equipment & Services Total 32,027,406
OIL & GAS - 2.0%
Chesapeake Energy Corp. 309,200 3,963,944
Spinnaker Exploration Co. (a) 47,700 1,578,393
XTO Energy, Inc. 335,200 10,002,368
-----------
Oil & Gas Total 15,544,705
-----------
ENERGY TOTAL 47,572,111
FINANCIALS - 2.5%
DIVERSIFIED FINANCIAL SERVICES - 0.8%
Affiliated Managers Group, Inc. (a) 73,000 6,168,500
-----------
Diversified Financial Services Total 6,168,500
INSURANCE - 1.7%
Allmerica Financial Corp. (a) 213,900 7,888,632
ProAssurance Corp. (a) 154,900 5,232,522
-----------
Insurance Total 13,121,154
-----------
FINANCIALS TOTAL 19,289,654
HEALTH CARE - 15.5%
BIOTECHNOLOGY - 2.1%
Alkermes, Inc. (a) 345,200 4,919,100
Connetics Corp. (a) 150,900 3,324,327
ICOS Corp. (a) 161,950 6,199,446
OraSure Technologies, Inc. (a) 182,700 1,600,452
-----------
Biotechnology Total 16,043,325
HEALTH CARE EQUIPMENT & SUPPLIES - 3.3%
ArthroCare Corp. (a) 153,800 3,668,130
Dade Behring Holdings, Inc. (a) 111,900 4,571,115
Kinetic Concepts, Inc. (a) 33,800 1,363,830
Kyphon, Inc. (a) 95,200 2,403,800
Regeneration Technologies, Inc. (a) 348,100 3,836,062
ResMed, Inc. (a) 128,800 6,061,328
Wilson Greatbatch Technologies, Inc. (a) 98,410 3,565,394
-----------
Health Care Equipment & Supplies Total 25,469,659
See Accompanying Notes to Financial Statements.
61
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA SMALL CAP GROWTH FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
HEALTH CARE - (CONTINUED)
HEALTH CARE PROVIDERS & SERVICES - 8.7%
Cerner Corp. (a) 141,800 6,355,476
Community Health Systems, Inc. (a) 140,400 3,938,220
DaVita, Inc. (a) 245,331 11,165,014
Henry Schein, Inc. (a) 161,551 11,550,897
ICON PLC, ADR (a) 181,850 6,066,516
Kindred Healthcare, Inc. (a) 125,200 7,370,524
Renal Care Group, Inc. (a) 235,400 10,983,764
Sierra Health Services, Inc (a) 152,700 5,104,761
United Surgical Partners
International, Inc. (a) 162,200 5,915,434
-----------
Health Care Providers & Services Total 68,450,606
PHARMACEUTICALS - 1.4%
MGI Pharma, Inc. (a) 144,200 7,083,104
NPS Pharmaceuticals, Inc. (a) 141,400 4,237,758
-----------
Pharmaceuticals Total 11,320,862
-----------
HEALTH CARE TOTAL 121,284,452
INDUSTRIALS - 13.3%
AEROSPACE & DEFENSE - 1.6%
Armor Holdings, Inc. (a) 221,200 6,494,432
United Defense Industries, Inc. (a) 191,600 5,872,540
-----------
Aerospace & Defense Total 12,366,972
AIR FREIGHT & LOGISTICS - 0.6%
UTI Worldwide, Inc. 100,700 4,548,619
-----------
Air Freight & Logistics Total 4,548,619
AIRLINES - 0.6%
SkyWest, Inc. 255,100 4,936,185
-----------
Airlines Total 4,936,185
COMMERCIAL SERVICES & SUPPLIES - 6.3%
Corinthian Colleges, Inc. (a) 161,000 9,684,150
Corporate Executive Board Co. 156,260 7,792,686
Education Management Corp. (a) 459,942 14,722,743
Resources Connection, Inc. (a) 224,700 7,242,081
Roto-Rooter, Inc. 38,400 2,166,528
Tetra Tech, Inc. (a) 364,800 7,770,240
-----------
Commercial Services & Supplies Total 49,378,428
CONSTRUCTION & ENGINEERING - 0.3%
Chicago Bridge & Iron Co. NV,
N.Y. Registered Shares 73,200 2,053,260
-----------
Construction & Engineering Total 2,053,260
ELECTRICAL EQUIPMENT - 2.1%
Artesyn Technologies, Inc. (a) 608,300 6,630,470
Cherokee International Corp. (a) 74,400 1,216,440
Global Power Equipment Group, Inc. (a) 67,300 725,494
Power-One, Inc. (a) 430,230 5,274,620
Roper Industries, Inc. 52,700 2,558,585
-----------
Electrical Equipment Total 16,405,609
SHARES VALUE ($)
- ----------------------------------------------------------------------
MACHINERY - 1.8%
Albany International Corp., Class A 179,000 5,713,680
Kennametal, Inc. 112,400 4,879,284
Terex Corp. (a) 114,200 4,000,426
-----------
Machinery Total 14,593,390
-----------
INDUSTRIALS TOTAL 104,282,463
INFORMATION TECHNOLOGY - 40.3%
COMMUNICATIONS EQUIPMENT - 8.9%
Advanced Fibre Communications,
Inc. (a) 299,300 7,338,836
Aspect Communications Corp. (a) 451,400 8,152,284
Extreme Networks (a) 472,200 3,801,210
F5 Networks, Inc. (a) 203,200 6,723,888
Foundry Networks, Inc. (a) 312,410 7,372,876
Ixia (a) 540,700 6,380,260
NetScreen Technologies, Inc. (a) 221,700 7,859,265
Polycom, Inc. (a) 550,600 12,151,742
Powerwave Technologies, Inc. (a) 645,000 6,366,150
Westell Technologies, Inc., Class A (a) 527,900 4,043,714
-----------
Communications Equipment Total 70,190,225
COMPUTERS & PERIPHERALS - 1.6%
Electronics for Imaging, Inc. (a) 480,820 12,198,403
-----------
Computers & Peripherals Total 12,198,403
ELECTRONIC EQUIPMENT & INSTRUMENTS - 7.1%
Amphenol Corp., Class A (a) 298,955 18,490,367
AVX Corp. 774,100 13,035,844
Electro Scientific Industries, Inc. (a) 187,700 4,480,399
KEMET Corp. (a) 399,400 5,879,168
Merix Corp. (a) 233,200 5,736,720
National Instruments Corp. 176,790 6,109,862
RadiSys Corp. (a) 86,400 1,772,064
-----------
Electronic Equipment & Instruments Total 55,504,424
INTERNET SOFTWARE & SERVICES - 3.1%
Altiris, Inc. (a) 73,900 2,013,775
Ask Jeeves, Inc. (a) 375,600 7,583,364
CNET Networks, Inc. (a) 711,400 7,071,316
DoubleClick, Inc. (a) 717,100 7,780,535
-----------
Internet Software & Services Total 24,448,990
IT SERVICES - 4.4%
Anteon International Corp. (a) 137,500 4,021,875
CACI International, Inc., Class A (a) 133,400 5,916,290
CheckFree Corp. (a) 200,100 5,808,903
Cognizant Technology Solutions
Corp. (a) 120,100 5,697,544
Global Payments, Inc. 118,136 5,110,563
IDX Systems Corp. (a) 115,100 4,003,178
MPS Group, Inc. (a) 389,600 3,798,600
-----------
IT Services Total 34,356,953
See Accompanying Notes to Financial Statements.
62
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA SMALL CAP GROWTH FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
INFORMATION TECHNOLOGY - (CONTINUED)
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 7.9%
ASE Test Ltd. (a) 530,200 6,558,574
Axcelis Technologies, Inc. (a) 388,400 4,443,296
ChipPAC, Inc., Class A (a) 648,100 5,528,293
Conexant Systems, Inc. (a) 732,900 5,386,815
Credence Systems Corp. (a) 549,600 6,237,960
Integrated Device Technology, Inc. (a) 493,800 8,142,762
Lattice Semiconductor Corp. (a) 395,600 4,086,548
ON Semiconductor Corp. (a) 1,023,000 8,654,580
TriQuint Semiconductor, Inc. (a) 626,600 5,012,800
Ultratech, Inc. (a) 305,400 7,576,974
-----------
Semiconductors & Semiconductor Equipment Total 61,628,602
SOFTWARE - 7.3%
Agile Software Corp. (a) 206,000 1,932,280
Amdocs Ltd. (a) 109,600 3,055,648
Autodesk, Inc. 145,400 4,165,710
Citrix Systems, Inc. (a) 284,900 6,034,182
Embarcadero Technologies, Inc. (a) 297,200 3,649,616
Fair Isaac Corp. 243,375 14,514,885
Macromedia, Inc. (a) 395,300 8,103,650
Manhattan Associates, Inc. (a) 203,800 5,840,908
Quest Software, Inc. (a) 378,200 5,964,214
Verity, Inc. (a) 251,800 4,167,290
-----------
Software Total 57,428,383
-----------
INFORMATION TECHNOLOGY TOTAL 315,755,980
MATERIALS - 3.2%
CHEMICALS - 1.2%
OM Group, Inc. (a) 302,300 9,286,656
-----------
Chemicals Total 9,286,656
METALS & MINING - 2.0%
Arch Coal, Inc. 59,000 1,727,520
GrafTech International Ltd. (a) 561,200 7,615,484
Massey Energy Co. 88,100 1,856,267
Steel Dynamics, Inc. (a) 206,300 5,002,775
-----------
Metals & Mining Total 16,202,046
-----------
MATERIALS TOTAL 25,488,702
TELECOMMUNICATION SERVICES - 1.7%
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.7%
Covad Communications Group, Inc. (a) 580,500 1,921,455
PTEK Holdings, Inc. (a) 399,000 3,942,120
-----------
Diversified Telecommunication Services Total 5,863,575
SHARES VALUE ($)
- ----------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 1.0%
Wireless Facilities, Inc. (a) 604,100 7,895,587
-----------
Wireless Telecommunication Services Total 7,895,587
-----------
TELECOMMUNICATION SERVICES TOTAL 13,759,162
TOTAL COMMON STOCKS
(Cost of $618,931,435) 778,976,917
SHORT-TERM OBLIGATION - 2.0% PAR ($)
- ----------------------------------------------------------------------
Repurchase agreement with State
Street Bank & Trust Co., dated
02/27/04, due 03/01/04 at 0.930%,
collateralized by a U.S. Treasury
Note maturing 04/15/04, market
value $16,275,446 (repurchase
proceeds $15,957,237)
(Cost of $15,956,000) 15,956,000 15,956,000
-----------
TOTAL INVESTMENTS - 101.4%
(COST OF $634,887,435) (b) 794,932,917
OTHER ASSETS & LIABILITIES, NET - (1.4)% (10,888,110)
NET ASSETS - 100.0% 784,044,807
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing.
(b) Cost for both financial statement and federal income tax purposes is the
same.
ACRONYM NAME
------- ----
ADR American Depositary Receipt
See Accompanying Notes to Financial Statements.
63
INVESTMENT PORTFOLIO____________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA REAL ESTATE EQUITY FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - 95.8%
CONSUMER DISCRETIONARY - 5.3%
HOTELS, RESTAURANTS & LEISURE - 5.3%
Hilton Hotels Corp. 1,211,700 19,423,551
La Quinta Corp. (a) 1,856,500 14,350,745
Marriott International, Inc., Class A 307,700 13,732,651
Starwood Hotels & Resorts
Worldwide, Inc. 273,800 10,680,938
-----------
Hotels, Restaurants & Leisure Total 58,187,885
-----------
CONSUMER DISCRETIONARY TOTAL 58,187,885
FINANCIALS - 78.8%
REAL ESTATE - 78.8%
Alexandria Real Estate Equities,
Inc., REIT 663,100 40,701,078
AMB Property Corp., REIT 467,400 16,555,308
American Financial Realty Trust, REIT 563,600 10,285,700
Apartment Investment &
Management Co., Class A, REIT 352,300 11,414,520
Archstone-Smith Trust, REIT 644,771 18,053,588
AvalonBay Communities, Inc., REIT 348,800 17,572,544
Boston Properties, Inc., REIT 370,500 18,980,715
Brookfield Properties Corp. 412,600 12,361,496
CarrAmerica Realty Corp., REIT 275,500 8,871,100
CenterPoint Properties Trust, REIT 257,300 19,902,155
Chelsea Property Group, Inc., REIT 214,400 12,724,640
Cousins Properties, Inc., REIT 1,298,850 39,874,695
Duke Realty Corp., REIT 1,146,000 37,130,400
Equity Office Properties Trust, REIT 934,537 26,671,686
Equity Residential, REIT 608,506 18,103,053
First Industrial Realty Trust, Inc.,
REIT 293,400 11,031,840
General Growth Properties, Inc., REIT 1,844,880 57,670,949
iStar Financial, Inc., REIT 1,134,350 47,472,548
Kimco Realty Corp., REIT 558,100 26,202,795
Liberty Property Trust, REIT 698,200 29,519,896
Manufactured Home Communities,
Inc., REIT 179,900 6,017,655
Newcastle Investment Corp., REIT 623,700 17,987,508
Pan Pacific Retail Properties, Inc.,
REIT 287,800 14,246,100
Parkway Properties, Inc., REIT 93,100 4,403,630
Prentiss Properties Trust, REIT 204,000 7,109,400
ProLogis, REIT 1,372,406 45,467,811
Public Storage, Inc., REIT 617,032 29,450,937
Reckson Associates Realty Corp., REIT 234,000 6,266,520
Regency Centers Corp., REIT 901,000 37,796,950
Rouse Co., REIT 778,400 38,920,000
Simon Property Group, Inc., REIT 1,193,056 65,009,621
SL Green Realty Corp., REIT 382,200 16,816,800
St. Joe Co. 715,000 29,300,700
Taubman Centers, Inc., REIT 946,000 22,514,800
United Dominion Realty Trust,
Inc., REIT 663,400 12,518,358
Vornado Realty Trust, REIT 385,900 21,957,710
-----------
Real Estate Total 856,885,206
-----------
FINANCIALS TOTAL 856,885,206
SHARES VALUE ($)
- ----------------------------------------------------------------------
MATERIALS - 11.7%
CONTAINERS & PACKAGING - 2.5%
Smurfit-Stone Container Corp. (a) 970,400 18,010,624
Temple-Inland, Inc. 139,200 9,068,880
-----------
Containers & Packaging Total 27,079,504
PAPER & FOREST PRODUCTS - 9.2%
Bowater, Inc. 916,400 42,062,760
International Paper Co. 705,500 31,225,430
MeadWestvaco Corp. 537,700 15,754,610
Weyerhaeuser Co. 166,100 10,838,025
-----------
Paper & Forest Products Total 99,880,825
-----------
MATERIALS TOTAL 126,960,329
TOTAL COMMON STOCKS
(Cost of $706,712,182) 1,042,033,420
INCOME DEPOSIT SECURITY - 1.0%
CONSUMER DISCRETIONARY - 1.0%
HOTELS, RESTAURANTS & LEISURE - 1.0%
Volume Services America Holdings, Inc.
(Cost of $9,987,045) 665,500 11,513,150
-----------
SHORT-TERM OBLIGATION - 3.4% PAR ($)
- ----------------------------------------------------------------------
Repurchase agreement with State
Street Bank & Trust Co., dated
02/27/04, due 03/01/04 at 0.930%,
collateralized by a U.S. Treasury
Bond maturing 11/15/10, market
value $37,750,751 (repurchase
proceeds $37,012,868)
(Cost of $37,010,000) 37,010,000 37,010,000
-----------
TOTAL INVESTMENTS - 100.2%
(COST OF $753,709,227) (b) 1,090,556,570
OTHER ASSETS & LIABILITIES, NET - (0.2)% (2,580,862)
NET ASSETS - 100.0% 1,087,975,708
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing.
(b) Cost for both financial statement and federal income tax purposes is the
same.
ACRONYM NAME
------- ----
REIT Real Estate Investment Trust
See Accompanying Notes to Financial Statements.
64
INVESTMENT PORTFOLIO____________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA TECHNOLOGY FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - 98.5%
CONSUMER DISCRETIONARY - 4.0%
INTERNET & CATALOG RETAIL - 0.9%
eBay, Inc. (a) 5,000 344,300
-----------
Internet & Catalog Retail Total 344,300
LEISURE EQUIPMENT & PRODUCTS - 0.6%
Nautilus Group, Inc. 15,000 245,100
-----------
Leisure Equipment & Products Total 245,100
MEDIA - 2.5%
Netflix, Inc. (a) 7,710 265,224
XM Satellite Radio Holdings, Inc.,
Class A (a) 30,350 742,968
-----------
Media Total 1,008,192
-----------
CONSUMER DISCRETIONARY TOTAL 1,597,592
CONSUMER STAPLES - 0.3%
FOOD PRODUCTS - 0.3%
SunOpta, Inc. (a) 14,000 142,940
-----------
Food Products Total 142,940
-----------
CONSUMER STAPLES TOTAL 142,940
HEALTH CARE - 5.2%
BIOTECHNOLOGY - 4.2%
Alexion Pharmaceuticals, Inc. (a) 12,000 274,680
Amylin Pharmaceuticals, Inc. (a) 15,000 343,800
Cepheid, Inc. (a) 10,900 110,199
Cubist Pharmaceuticals, Inc. (a) 15,000 168,300
Nabi Biopharmaceuticals (a) 25,000 352,250
Onyx Pharmaceuticals, Inc. (a) 10,000 368,000
Strategic Diagnostics, Inc. (a) 22,500 92,700
-----------
Biotechnology Total 1,709,929
HEALTH CARE EQUIPMENT & SUPPLIES - 0.4%
Orthovita, Inc. (a) 50,000 177,000
-----------
Health Care Equipment & Supplies Total 177,000
PHARMACEUTICALS - 0.6%
Ligand Pharmaceuticals, Inc., Class B (a) 15,000 230,850
-----------
Pharmaceuticals Total 230,850
-----------
HEALTH CARE TOTAL 2,117,779
INDUSTRIALS - 0.9%
COMMERCIAL SERVICES & SUPPLIES - 0.9%
Alliance Data Systems Corp. (a) 12,000 359,400
-----------
Commercial Services & Supplies Total 359,400
-----------
INDUSTRIALS TOTAL 359,400
SHARES VALUE ($)
- ----------------------------------------------------------------------
INFORMATION TECHNOLOGY - 77.0%
COMMUNICATIONS EQUIPMENT - 16.4%
ADC Telecommunications, Inc. (a) 85,000 255,000
ADTRAN, Inc. 10,000 325,600
Alvarion Ltd. (a) 10,000 144,500
Aspect Communications Corp. (a) 7,500 135,450
Avaya, Inc. (a) 2,600 44,590
Brocade Communications Systems,
Inc. (a) 25,000 174,250
Comverse Technology, Inc. (a) 20,000 394,400
CyberGuard Corp. (a) 12,000 131,280
ECI Telecom Ltd. (a) 225,000 1,550,025
F5 Networks, Inc. (a) 6,200 205,158
Foundry Networks, Inc. (a) 8,000 188,800
Juniper Networks, Inc. (a) 15,000 388,050
NetScreen Technologies, Inc. (a) 6,500 230,425
Network Equipment Technologies,
Inc. (a) 10,500 135,765
Oplink Communications, Inc. (a) 181,000 479,650
Packeteer, Inc. (a) 10,000 144,600
Paradyne Networks, Inc. (a) 25,000 105,000
QLogic Corp. (a) 8,300 346,940
QUALCOMM, Inc. 10,000 634,500
Sonus Networks, Inc. (a) 66,000 391,380
Symmetricom, Inc. (a) 23,200 212,976
-----------
Communications Equipment Total 6,618,339
COMPUTERS & PERIPHERALS - 3.2%
Dell, Inc. (a) 10,600 346,090
Gateway, Inc. (a) 35,000 190,050
Hypercom Corp. (a) 25,000 172,000
Novatel Wireless, Inc. (a) 10,000 192,500
Quantum Corp. (a) 40,000 154,000
Sigma Designs, Inc. (a) 16,900 127,933
Silicon Graphics, Inc. (a) 30,000 96,600
-----------
Computers & Peripherals Total 1,279,173
ELECTRONIC EQUIPMENT & INSTRUMENTS - 2.5%
Agilent Technologies, Inc. (a) 20,500 700,895
Oki Electric Industry Co.,
Ltd. (Japan) (a) 45,000 200,275
Symbol Technologies, Inc. 6,000 102,120
-----------
Electronic Equipment & Instruments Total 1,003,290
INTERNET SOFTWARE & SERVICES - 6.2%
Altiris, Inc. (a) 5,000 136,250
Ask Jeeves, Inc. (a) 9,200 185,748
DoubleClick, Inc. (a) 18,000 195,300
j2 Global Communications, Inc. (a) 14,500 318,420
Lastminute.com PLC, ADR (a) 5,000 105,000
SINA Corp., Registered Shares (a) 5,300 234,159
SupportSoft, Inc. (a) 15,000 182,700
United Online, Inc. (a) 22,500 387,450
VeriSign, Inc. (a) 16,000 278,560
Yahoo!, Inc. (a) 10,900 483,960
-----------
Internet Software & Services Total 2,507,547
See Accompanying Notes to Financial Statements.
65
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA TECHNOLOGY FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
INFORMATION TECHNOLOGY - (CONTINUED)
IT SERVICES - 6.3%
Affiliated Computer Services, Inc.,
Class A (a) 6,000 289,560
Carreker Corp. (a) 11,000 145,750
Cognizant Technology Solutions
Corp. (a) 13,500 640,440
Computer Sciences Corp. (a) 15,000 626,850
Global Payments, Inc. 4,000 173,040
Infosys Technologies Ltd., ADR 4,000 336,120
Redback Networks, Inc. (a) 16,000 126,560
Wipro Ltd., ADR 4,500 185,445
-----------
IT Services Total 2,523,765
OFFICE ELECTRONICS - 0.4%
Zebra Technologies Corp., Class A (a) 2,500 178,700
-----------
Office Electronics Total 178,700
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 31.7%
Advanced Power Technology, Inc. (a) 14,000 147,000
ASML Holding NV, N.Y. Registered
Shares (a) 26,600 485,716
Atmel Corp. (a) 14,000 96,880
Broadcom Corp., Class A (a) 15,100 612,758
FormFactor, Inc. (a) 100,000 2,034,000
Genesis Microchip, Inc. (a) 21,900 361,788
GlobespanVirata, Inc. (a) 16,000 141,920
Hifn, Inc. (a) 13,000 169,650
Marvell Technology Group Ltd. (a) 20,850 949,300
Microchip Technology, Inc. 14,000 399,000
MIPS Technologies, Inc., (a) 95,500 539,575
NVIDIA Corp. (a) 13,500 300,375
O2Micro International Ltd. (a) 8,000 145,280
ON Semiconductor Corp. (a) 50,000 423,000
PDF Solutions, Inc. (a) 15,000 173,250
PLX Technology, Inc. (a) 27,000 261,900
Power Integrations, Inc. (a) 3,148 92,803
QuickLogic Corp. (a) 25,000 95,500
Rambus, Inc. (a) 7,200 233,208
Samsung Electronics Co., Ltd., GDR (b) 6,000 1,401,000
Silicon Image, Inc. (a) 33,000 367,950
Silicon Laboratories, Inc., (a) 5,000 281,850
SRS Labs, Inc. (a) 29,000 256,940
Taiwan Semiconductor Manufacturing
Co., Ltd., ADR (a) 15,000 155,850
Transmeta Corp. (a) 40,000 144,800
ZiLOG, Inc. (a) 375,800 2,487,796
-----------
Semiconductors & Semiconductor Equipment Total 12,759,089
SHARES VALUE ($)
- ----------------------------------------------------------------------
SOFTWARE - 10.3%
Agile Software Corp. (a) 12,000 112,560
Amdocs Ltd. (a) 7,000 195,160
Citrix Systems, Inc. (a) 9,000 190,620
Computer Associates International, Inc. 15,000 398,400
Embarcadero Technologies, Inc. (a) 15,000 184,200
Geac Computer Corp., Ltd. (Canada) (a) 35,000 204,751
Microsoft Corp. 14,000 371,000
Novell, Inc. (a) 45,000 458,100
Oracle Corp. (a) 32,000 412,160
Peregrine Systems, Inc. (a) 12,000 282,000
Red Hat, Inc. (a) 10,000 180,800
SAP AG, ADR 6,000 237,600
SERENA Software, Inc. (a) 10,000 207,100
Synopsys, Inc. (a) 6,000 176,880
Synplicity, Inc. (a) 20,000 143,600
VERITAS Software Corp. (a) 7,000 212,940
Verity, Inc. (a) 12,000 198,600
-----------
Software Total 4,166,471
-----------
INFORMATION TECHNOLOGY TOTAL 31,036,374
MATERIALS - 1.0%
CHEMICALS - 1.0%
Landec Corp. (a) 12,000 96,000
Symyx Technologies, Inc. (a) 5,500 146,850
Zeon Corp. (Japan) 23,000 164,075
-----------
Chemicals Total 406,925
-----------
MATERIALS TOTAL 406,925
TELECOMMUNICATION SERVICES - 10.1%
DIVERSIFIED TELECOMMUNICATION SERVICES - 2.3%
Covad Communications Group,
Inc. (a) 60,000 198,600
Telefonaktiebolaget LM Ericsson,
ADR (a) 25,000 725,500
-----------
Diversified Telecommunication Services Total 924,100
WIRELESS TELECOMMUNICATION SERVICES - 7.8%
American Tower Corp., Class A (a) 20,000 221,000
Crown Castle International Corp. (a) 29,000 349,450
LCC International, Inc., Class A (a) 30,000 196,500
Millicom International Cellular SA (a) 44,000 985,160
Mobile Telesystems, ADR (a) 4,000 429,000
VimpelCom, ADR (a) 9,000 764,010
Wireless Facilities, Inc. (a) 15,000 196,050
-----------
Wireless Telecommunication Services Total 3,141,170
-----------
TELECOMMUNICATION SERVICES TOTAL 4,065,270
TOTAL COMMON STOCKS
(Cost of $34,792,727) 39,726,280
See Accompanying Notes to Financial Statements.
66
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA TECHNOLOGY FUND
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
SHORT-TERM OBLIGATIONS - 0.7%
Repurchase agreement with State
Street Bank & Trust Co., dated
02/27/04, due 03/01/04 at 0.930%,
collateralized by a U.S. Treasury
Note maturing 09/30/05, market
value $272,000 (repurchase
proceeds $265,021)
(Cost of $265,000) 265,000 265,000
-----------
TOTAL INVESTMENTS - 99.2%
(COST OF $35,057,727) (C) 39,991,280
OTHER ASSETS & LIABILITIES, NET - 0.8% 324,889
NET ASSETS - 100.0% 40,316,169
NOTES TO INVESTMENT PORTFOLIO:
(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 February 29, 2004, the value
of this security amounted to $1,401,000, which represents 3.5% of net
assets.
(c) Cost for both financial statement and federal income tax purposes is the
same.
ACRONYM NAME
------- ----
ADR American Depositary Receipt
GDR Global Depositary Receipt
See Accompanying Notes to Financial Statements.
67
INVESTMENT PORTFOLIO____________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA STRATEGIC INVESTOR FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - 79.9%
CONSUMER DISCRETIONARY - 11.4%
AUTO COMPONENTS - 1.6%
Modine Manufacturing Co. 62,500 1,778,125
Nokian Renkaat Oyj (Finland) 35,800 3,038,904
Visteon Corp. 75,000 757,500
-----------
Auto Components Total 5,574,529
AUTOMOBILES - 0.1%
Fiat S.p.A., ADR 50,000 388,500
-----------
Automobiles Total 388,500
HOTELS, RESTAURANTS & LEISURE - 1.6%
Caesars Entertainment, Inc. (a) 125,000 1,537,500
California Pizza Kitchen, Inc. (a) 43,200 792,720
Fairmont Hotels & Resorts, Inc. 50,000 1,281,500
McDonald's Corp. 65,000 1,839,500
-----------
Hotels, Restaurants & Leisure Total 5,451,220
HOUSEHOLD DURABLES - 1.9%
Cavco Industries, Inc. (a) 20,000 760,000
Ekornes ASA (Norway) 100,000 1,953,292
Makita Corp., ADR 62,000 737,800
Matsushita Electric Industrial Co.,
Ltd., ADR 100,000 1,450,000
Stanley Works 45,000 1,742,850
-----------
Household Durables Total 6,643,942
LEISURE EQUIPMENT & PRODUCTS - 0.2%
Hasbro, Inc. 30,000 656,100
-----------
Leisure Equipment & Products Total 656,100
MEDIA - 3.1%
Belo Corp., Class A 47,500 1,325,250
Comcast Corp., Class A (a) 32,500 949,650
Entravision Communications Corp.,
Class A (a) 100,000 960,000
Fox Entertainment Group, Inc.,
Class A (a) 40,000 1,160,800
Journal Communications, Inc., Class A 30,000 549,900
Martha Stewart Living Omnimedia,
Inc., Class A (a) 75,000 1,089,750
Media General, Inc., Class A 27,500 1,782,000
Time Warner, Inc. (a) 100,000 1,725,000
Walt Disney Co. 40,000 1,061,200
-----------
Media Total 10,603,550
MULTILINE RETAIL - 2.2%
Big Lots, Inc. (a) 75,000 1,080,000
Dillard's, Inc., Class A 100,000 1,760,000
ITO-Yokado Co., Ltd. (Japan) 40,000 1,509,157
Kohl's Corp. (a) 30,000 1,545,000
Stockmann Oyj, Class B (Finland) 70,000 1,646,670
-----------
Multiline Retail Total 7,540,827
SHARES VALUE ($)
- ----------------------------------------------------------------------
SPECIALTY RETAIL - 0.7%
American Eagle Outfitters, Inc. (a) 30,000 731,700
CarMax, Inc. (a) 30,000 1,020,000
Circuit City Stores, Inc. 75,000 838,500
-----------
Specialty Retail Total 2,590,200
-----------
CONSUMER DISCRETIONARY TOTAL 39,448,868
CONSUMER STAPLES - 5.1%
BEVERAGES - 1.4%
Coca-Cola Co. 10,000 499,600
Coca-Cola Femsa SA de CV, ADR 92,500 2,199,650
Companhia de Bebidas das
Americas, ADR 80,000 2,152,000
-----------
Beverages Total 4,851,250
FOOD & STAPLES RETAILING - 1.4%
Albertson's, Inc. 34,200 846,108
Longs Drug Stores Corp. 42,500 887,825
United Natural Foods, Inc. (a) 30,000 1,384,500
Walgreen Co. 52,500 1,872,150
-----------
Food & Staples Retailing Total 4,990,583
FOOD PRODUCTS - 1.8%
Archer-Daniels-Midland Co. 30,000 516,000
Del Monte Foods Co. (a) 50,000 545,000
Delta & Pine Land Co. 30,000 765,000
General Mills, Inc. 30,000 1,379,400
Interstate Bakeries Corp. 57,500 862,500
Nestle SA, Registered Shares (Switzerland) 5,000 1,325,630
Tyson Foods, Inc., Class A 62,500 992,500
-----------
Food Products Total 6,386,030
HOUSEHOLD PRODUCTS - 0.5%
Kimberly-Clark Corp. 25,000 1,617,000
-----------
Household Products Total 1,617,000
-----------
CONSUMER STAPLES TOTAL 17,844,863
ENERGY - 8.4%
ENERGY EQUIPMENT & SERVICES - 4.8%
BJ Services Co. (a) 30,000 1,298,700
Core Laboratories NV (a) 75,000 1,473,750
GlobalSantaFe Corp. 47,500 1,401,250
Grant Prideco, Inc. (a) 92,500 1,403,225
Halliburton Co. 82,500 2,636,700
Schlumberger Ltd. 47,500 3,063,275
Transocean, Inc. (a) 100,000 2,948,000
Varco International, Inc. (a) 45,000 896,400
Willbros Group, Inc. (a) 100,000 1,550,000
-----------
Energy Equipment & Services Total 16,671,300
OIL & GAS - 3.6%
Anadarko Petroleum Corp. 20,000 1,025,000
BP PLC, ADR 52,500 2,583,000
ConocoPhillips 20,000 1,377,400
See Accompanying Notes to Financial Statements.
68
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA STRATEGIC INVESTOR FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
ENERGY - (CONTINUED)
OIL & GAS - (CONTINUED)
Devon Energy Corp. 25,000 1,419,500
Energy Partners Ltd. (a) 50,000 687,000
Exxon Mobil Corp. 30,000 1,265,100
Newfield Exploration Co. (a) 30,000 1,406,400
Stelmar Shipping Ltd. (a) 50,000 1,436,000
Unocal Corp. 30,000 1,140,000
-----------
Oil & Gas Total 12,339,400
-----------
ENERGY TOTAL 29,010,700
FINANCIALS - 12.5%
COMMERCIAL BANKS - 5.2%
Allied Irish Banks PLC, ADR 30,000 924,000
Banco Bradesco SA, ADR 45,000 1,139,850
Bank One Corp. 47,500 2,564,050
Columbia Banking Systems, Inc. 50,000 1,240,500
Fifth Third Bancorp 37,500 2,100,750
Freddie Mac 20,000 1,238,400
HSBC Holdings PLC, ADR 25,000 2,043,750
MGIC Investment Corp. 20,000 1,323,600
Mitsubishi Tokyo Financial Group,
Inc., ADR 200,000 1,560,000
Radian Group, Inc. 32,500 1,420,250
Shinsei Bank Ltd. (Japan) 37,000 273,434
U.S. Bancorp 75,000 2,139,750
-----------
Commercial Banks Total 17,968,334
DIVERSIFIED FINANCIAL SERVICES - 4.3%
Bank of New York Co., Inc. 50,000 1,650,000
Citigroup, Inc. 52,500 2,638,650
GATX Corp. 77,500 1,822,800
ICICI Bank Ltd., ADR 30,000 447,000
Instinet Group, Inc. (a) 125,000 883,750
J.P. Morgan Chase & Co. 67,500 2,768,850
Mellon Financial Corp. 30,000 971,400
Nikko Cordial Corp. (Japan) 150,000 822,802
Nomura Holdings, Inc., ADR 75,000 1,197,000
Piper Jaffray Companies, Inc. (a) 33,350 1,718,192
-----------
Diversified Financial Services Total 14,920,444
INSURANCE - 2.2%
Allstate Corp. 50,000 2,281,500
Assurant, Inc. (a) 37,400 962,676
St. Paul Companies, Inc. 37,500 1,602,750
Wesco Financial Corp. 7,500 2,870,625
-----------
Insurance Total 7,717,551
REAL ESTATE - 0.8%
MI Developments, Inc., Class A (a) 50,000 1,468,000
Post Properties, Inc. 50,000 1,426,000
-----------
Real Estate Total 2,894,000
-----------
FINANCIALS TOTAL 43,500,329
SHARES VALUE ($)
- ----------------------------------------------------------------------
HEALTH CARE - 9.2%
BIOTECHNOLOGY - 0.7%
Biogen Idec, Inc. (a) 40,000 2,218,000
-----------
Biotechnology Total 2,218,000
HEALTH CARE EQUIPMENT & SUPPLIES - 1.5%
Applera Corp. - Applied Biosystems
Group 60,000 1,368,000
Baxter International, Inc. 42,500 1,237,600
Cytyc Corp. (a) 62,500 1,030,000
Haemonetics Corp. (a) 50,000 1,449,500
-----------
Health Care Equipment & Supplies Total 5,085,100
HEALTH CARE PROVIDERS & SERVICES - 2.3%
AmerisourceBergen Corp. 20,000 1,160,600
Anthem, Inc. (a) 15,000 1,289,250
Genesis HealthCare Corp. (a) 40,000 1,090,000
McKesson Corp. 40,000 1,092,400
National Dentex Corp. (a) 13,719 370,139
Quest Diagnostics, Inc. (a) 30,000 2,486,100
Tenet Healthcare Corp. (a) 50,000 601,000
-----------
Health Care Providers & Services Total 8,089,489
PHARMACEUTICALS - 4.7%
Abbott Laboratories 50,000 2,140,000
Bristol-Myers Squibb Co. 62,500 1,738,750
Elan Corp. PLC, ADR (a) 50,000 721,000
Gedeon Richter Ltd. (Hungary) 20,000 2,285,937
Novartis AG, ADR 20,000 883,000
Pfizer, Inc. 86,200 3,159,230
Schering-Plough Corp. 75,000 1,347,000
Shire Pharmaceuticals Group PLC,
ADR (a) 47,500 1,468,700
Valeant Pharmaceuticals International 75,000 1,644,750
Wyeth 25,000 987,500
-----------
Pharmaceuticals Total 16,375,867
-----------
HEALTH CARE TOTAL 31,768,456
INDUSTRIALS - 10.2%
AEROSPACE & DEFENSE - 0.2%
Raytheon Co. 25,000 760,000
-----------
Aerospace & Defense Total 760,000
COMMERCIAL SERVICES & SUPPLIES - 3.7%
Allied Waste Industries, Inc. (a) 50,000 631,500
Avery Dennison Corp. 25,000 1,584,250
Cendant Corp. 100,000 2,270,000
Central Parking Corp. 37,500 718,500
Copart, Inc. (a) 85,000 1,669,400
G&K Services, Inc., Class A 30,000 1,090,200
Ionics, Inc. (a) 25,000 695,000
Kroll, Inc. (a) 50,000 1,173,000
R.R. Donnelley & Sons Co. 47,500 1,508,600
Waste Management, Inc. 55,000 1,567,500
-----------
Commercial Services & Supplies Total 12,907,950
See Accompanying Notes to Financial Statements.
69
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA STRATEGIC INVESTOR FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
INDUSTRIALS - (CONTINUED)
CONSTRUCTION & ENGINEERING - 0.5%
Shaw Group, Inc. (a) 40,000 481,600
URS Corp. (a) 40,000 1,224,000
-----------
Construction & Engineering Total 1,705,600
ELECTRICAL EQUIPMENT - 0.5%
Thomas & Betts Corp. (a) 75,000 1,619,250
-----------
Electrical Equipment Total 1,619,250
INDUSTRIAL CONGLOMERATES - 1.6%
3M Co. 65,000 5,071,300
Gammon Lake Resources, Inc. (a) 75,000 381,750
-----------
Industrial Conglomerates Total 5,453,050
MACHINERY - 3.5%
AGCO Corp. (a) 75,000 1,398,750
Caterpillar, Inc. 30,000 2,272,500
CNH Global NV 30,000 555,300
Eaton Corp. 40,000 2,341,600
Federal Signal Corp. 70,000 1,319,500
Flowserve Corp. (a) 40,000 869,200
JLG Industries, Inc. 87,500 1,174,250
Paccar, Inc. 17,500 969,675
Timken Co. 57,500 1,263,850
-----------
Machinery Total 12,164,625
ROAD & RAIL - 0.2%
Kansas City Southern (a) 50,000 702,500
-----------
Road & Rail Total 702,500
-----------
INDUSTRIALS TOTAL 35,312,975
INFORMATION TECHNOLOGY - 10.1%
COMMUNICATIONS EQUIPMENT - 1.9%
Motorola, Inc. 77,500 1,429,875
Nortel Networks Corp. (a) 75,000 598,500
Polycom, Inc. (a) 112,500 2,482,875
Powerwave Technologies, Inc. (a) 92,500 912,975
Tellabs, Inc. (a) 125,000 1,212,500
-----------
Communications Equipment Total 6,636,725
COMPUTERS & PERIPHERALS - 0.9%
Gateway, Inc. (a) 75,000 407,250
Hewlett-Packard Co. 50,000 1,135,500
Hypercom Corp. (a) 125,000 860,000
InFocus Corp. (a) 50,000 589,000
-----------
Computers & Peripherals Total 2,991,750
ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.0%
Celestica, Inc. (a) 75,000 1,344,750
Methode Electronics, Inc. 75,000 937,500
Solectron Corp. (a) 100,000 639,000
Waters Corp. (a) 20,000 738,800
-----------
Electronic Equipment & Instruments Total 3,660,050
-----------
SHARES VALUE ($)
- ----------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES - 0.8%
Check Point Software Technologies
Ltd. (a) 87,500 2,014,250
NIC, Inc. (a) 100,000 627,000
-----------
Internet Software & Services Total 2,641,250
IT SERVICES - 2.0%
Affiliated Computer Services, Inc.,
Class A (a) 32,500 1,568,450
BISYS Group, Inc. (a) 40,000 706,000
DST Systems, Inc. (a) 62,500 2,797,500
First Data Corp. 48,250 1,977,285
-----------
IT Services Total 7,049,235
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 1.7%
FEI Co. (a) 75,000 1,706,250
Micron Technology, Inc. 20,000 300,800
Samsung Electronics Co., Ltd., GDR (b) 10,000 2,335,000
Texas Instruments, Inc. 50,000 1,532,500
-----------
Semiconductors & Semiconductor Equipment Total 5,874,550
SOFTWARE - 1.8%
Activision, Inc. (a) 100,000 2,101,000
Borland Software Corp. (a) 75,000 697,500
Microsoft Corp. 62,500 1,656,250
Novell, Inc. (a) 112,500 1,145,250
Parametric Technology Corp. (a) 150,000 684,000
-----------
Software Total 6,284,000
-----------
INFORMATION TECHNOLOGY TOTAL 35,137,560
MATERIALS - 6.2%
CHEMICALS - 2.9%
Air Products & Chemicals, Inc. 30,000 1,447,200
Calgon Carbon Corp. 100,000 708,000
Dow Chemical Co. 50,000 2,173,500
IMC Global, Inc. 40,000 452,000
Landec Corp. (a) 50,000 400,000
Millennium Chemicals, Inc. 50,000 668,500
Potash Corp. of Saskatchewan, Inc. 27,500 2,274,250
Rohm and Haas Corp. 30,000 1,192,500
Zeon Corp. (Japan) 100,000 713,370
-----------
Chemicals Total 10,029,320
CONSTRUCTION MATERIALS - 0.3%
Martin Marietta Materials, Inc. 20,000 981,800
-----------
Construction Materials Total 981,800
CONTAINERS & PACKAGING - 0.3%
Smurfit-Stone Container Corp. (a) 50,000 928,000
-----------
Containers & Packaging Total 928,000
See Accompanying Notes to Financial Statements.
70
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA STRATEGIC INVESTOR FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
MATERIALS - (CONTINUED)
METALS & MINING - 0.9%
Alumina Ltd., ADR 20,000 343,200
Companhia Vale do Rio Doce, ADR 15,000 868,500
CONSOL Energy, Inc. 40,000 1,009,200
Nippon Steel Corp. (Japan) 300,000 587,912
Wolfden Resources, Inc. (Canada) (a) 50,000 212,615
-----------
Metals & Mining Total 3,021,427
PAPER & FOREST PRODUCTS - 1.8%
Abitibi-Consolidated, Inc. 50,000 396,000
Bowater, Inc. 47,500 2,180,250
Georgia-Pacific Corp. 40,000 1,282,000
Votorantim Celulose e Papel SA, ADR 75,000 2,550,000
-----------
Paper & Forest Products Total 6,408,250
-----------
MATERIALS TOTAL 21,368,797
TELECOMMUNICATION SERVICES - 3.8%
DIVERSIFIED TELECOMMUNICATION SERVICES - 2.2%
Companhia Anonima Nacional
Telefonos de Venezuela, ADR 80,000 1,482,400
Level 3 Communications, Inc. (a) 125,000 537,500
Philippine Long Distance Telephone
Co., ADR (a) 50,000 872,000
PT Telekomunikasi Indonesia, ADR 100,000 1,722,000
SBC Communications, Inc. 50,000 1,200,500
Verizon Communications, Inc. 47,500 1,820,675
-----------
Diversified Telecommunication Services Total 7,635,075
WIRELESS TELECOMMUNICATION SERVICES - 1.6%
Millicom International Cellular SA (a) 150,000 3,358,500
VimpelCom, ADR (a) 25,000 2,122,250
-----------
Wireless Telecommunication Services Total 5,480,750
-----------
TELECOMMUNICATION SERVICES TOTAL 13,115,825
UTILITIES - 3.0%
ELECTRIC UTILITIES - 1.0%
TECO Energy, Inc. 100,000 1,507,000
TXU Corp. 30,000 843,900
Veolia Environnement 40,000 1,192,000
-----------
Electric Utilities Total 3,542,900
GAS UTILITIES - 0.6%
NiSource, Inc. 50,000 1,085,500
NUI Corp. 47,500 812,725
-----------
Gas Utilities Total 1,898,225
SHARES VALUE ($)
- ----------------------------------------------------------------------
MULTI-UTILITIES & UNREGULATED POWER - 1.1%
Calpine Corp. (a) 125,000 688,750
Duke Energy Corp. 47,500 1,043,100
El Paso Corp. 40,000 297,600
ONEOK, Inc. 47,500 1,054,975
Westar Energy, Inc. 40,000 770,000
-----------
Multi-Utilities & Unregulated Power Total 3,854,425
WATER UTILITIES - 0.3%
California Water Service Group 37,500 1,104,375
-----------
Water Utilities Total 1,104,375
-----------
UTILITIES TOTAL 10,399,925
TOTAL COMMON STOCKS
(Cost of $211,193,881) 276,908,298
INVESTMENT MANAGEMENT COMPANY - 0.5%
Japan Smaller Capitalization Fund, Inc. (a)
(Cost of $984,539) 150,000 1,620,000
-----------
SHORT-TERM OBLIGATION - 19.4% PAR ($)
- ----------------------------------------------------------------------
Repurchase agreement with State
Street Bank & Trust Co., dated
02/27/04, due 03/01/04 at 0.930%,
collateralized by U.S. Treasury Notes
with maturities to 11/15/06, market
value $68,540,138 (repurchase
proceeds $67,196,207)
(Cost of $67,191,000) 67,191,000 67,191,000
-----------
TOTAL INVESTMENTS - 99.8%
(COST OF $279,369,420) (C) 345,719,298
OTHER ASSETS & LIABILITIES, NET - 0.2% 781,926
NET ASSETS - 100% 346,501,224
NOTES TO INVESTMENT PORTFOLIO:
(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 February 29, 2004, the value
of this security amounted to $2,335,000, which represents 0.7% of net
assets.
(c) Cost for both financial statement and federal income tax purposes is the
same.
ACRONYM NAME
------- ----
ADR American Depositary Receipt
GDR Global Depositary Receipt
See Accompanying Notes to Financial Statements.
71
INVESTMENT PORTFOLIO____________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA BALANCED FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - 65.9%
CONSUMER DISCRETIONARY - 7.6%
AUTO COMPONENTS - 0.4%
Dana Corp. 102,200 2,186,058
-----------
Auto Components Total 2,186,058
HOTELS, RESTAURANTS & LEISURE - 0.5%
Royal Caribbean Cruises Ltd. 71,850 3,179,363
-----------
Hotels, Restaurants & Leisure Total 3,179,363
INTERNET & CATALOG RETAIL - 0.4%
eBay, Inc. (a) 39,800 2,740,628
-----------
Internet & Catalog Retail Total 2,740,628
MEDIA - 3.7%
Comcast Corp., Class A (a) 49,856 1,497,674
Gannett Co., Inc. 48,750 4,205,662
Lamar Advertising Co. (a) 33,550 1,331,935
Time Warner, Inc. (a) 221,300 3,817,425
Tribune Co. 81,850 4,087,589
Viacom, Inc., Class B 97,600 3,753,696
Walt Disney Co. 171,700 4,555,201
-----------
Media Total 23,249,182
MULTILINE RETAIL - 2.1%
Kohl's Corp. (a) 111,900 5,762,850
Target Corp. 161,300 7,090,748
-----------
Multiline Retail Total 12,853,598
TEXTILES, APPAREL & LUXURY GOODS - 0.5%
NIKE, Inc., Class B 44,650 3,270,612
-----------
Textiles, Apparel & Luxury Goods Total 3,270,612
-----------
CONSUMER DISCRETIONARY TOTAL 47,479,441
CONSUMER STAPLES - 6.7%
BEVERAGES - 1.2%
Constellation Brands, Inc., Class A(a) 33,950 1,076,215
PepsiCo, Inc. 123,935 6,432,226
-----------
Beverages Total 7,508,441
FOOD & STAPLES RETAILING - 2.8%
Wal-Mart Stores, Inc. 294,500 17,540,420
-----------
Food & Staples Retailing Total 17,540,420
FOOD PRODUCTS - 0.2%
Hershey Foods Corp. 17,350 1,438,315
-----------
Food Products Total 1,438,315
HOUSEHOLD PRODUCTS - 0.8%
Colgate-Palmolive Co. 38,920 2,158,114
Procter & Gamble Co. 26,445 2,710,877
-----------
Household Products Total 4,868,991
SHARES VALUE ($)
- ----------------------------------------------------------------------
PERSONAL PRODUCTS - 0.6%
Alberto-Culver Co., Class B 39,488 1,622,147
Avon Products, Inc. 14,600 1,030,760
Estee Lauder Companies, Inc., Class A 24,600 1,047,960
-----------
Personal Products Total 3,700,867
TOBACCO - 1.1%
Altria Group, Inc. 111,875 6,438,406
-----------
Tobacco Total 6,438,406
-----------
CONSUMER STAPLES TOTAL 41,495,440
ENERGY - 2.6%
ENERGY EQUIPMENT & SERVICES - 0.4%
National-Oilwell, Inc. (a) 41,200 1,224,052
Schlumberger Ltd. 9,960 642,320
Smith International, Inc. (a) 12,880 652,630
-----------
Energy Equipment & Services Total 2,519,002
OIL & GAS - 2.2%
Apache Corp. 20,058 825,788
ConocoPhillips 37,750 2,599,842
Exxon Mobil Corp. 230,014 9,699,690
Pioneer Natural Resources Co. 13,450 432,014
-----------
Oil & Gas Total 13,557,334
-----------
ENERGY TOTAL 16,076,336
FINANCIALS - 13.4%
CAPITAL MARKETS - 3.7%
A.G. Edwards, Inc. 48,800 1,866,600
Bank of New York Co., Inc. 118,300 3,903,900
Goldman Sachs Group, Inc. 51,650 5,468,186
J.P. Morgan Chase & Co. 104,565 4,289,256
Merrill Lynch & Co., Inc. 105,600 6,463,776
Morgan Stanley 14,575 871,002
-----------
Capital Markets Total 22,862,720
COMMERCIAL BANKS - 1.6%
Bank of America Corp. (b) 15,260 1,250,099
Bank One Corp. 136,025 7,342,630
Wachovia Corp. 34,850 1,671,754
-----------
Commercial Banks Total 10,264,483
CONSUMER FINANCE - 1.8%
American Express Co. 153,725 8,211,990
MBNA Corp. 106,400 2,907,912
-----------
Consumer Finance Total 11,119,902
DIVERSIFIED FINANCIAL SERVICES - 2.9%
Ameritrade Holding Corp. (a) 55,700 906,796
CIT Group, Inc. 29,300 1,156,471
Citigroup, Inc. 317,793 15,972,276
-----------
Diversified Financial Services Total 18,035,543
See Accompanying Notes to Financial Statements.
72
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA BALANCED FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
FINANCIALS - (CONTINUED)
INSURANCE - 3.0%
Allstate Corp. (a) 68,395 3,120,864
American International Group, Inc. 99,162 7,337,988
Assurant, Inc. (a) 68,400 1,760,616
Chubb Corp. 41,900 2,974,062
Prudential Financial, Inc. 70,450 3,268,176
-----------
Insurance Total 18,461,706
THRIFTS & MORTGAGE FINANCE - 0.4%
Fannie Mae 31,725 2,376,202
-----------
Thrifts & Mortgage Finance Total 2,376,202
-----------
FINANCIALS TOTAL 83,120,556
HEALTH CARE - 6.9%
BIOTECHNOLOGY - 0.8%
Amgen, Inc. (a) 57,333 3,642,365
Gilead Sciences, Inc. (a) 28,250 1,531,432
-----------
Biotechnology Total 5,173,797
HEALTH CARE EQUIPMENT & SUPPLIES - 0.4%
Boston Scientific Corp. (a) 55,500 2,267,175
-----------
Health Care Equipment & Supplies Total 2,267,175
HEALTH CARE PROVIDERS & SERVICES - 1.2%
Aetna, Inc. 44,300 3,578,997
Cardinal Health, Inc. 40,100 2,615,723
Henry Schein, Inc. (a) 15,200 1,086,800
-----------
Health Care Providers & Services Total 7,281,520
PHARMACEUTICALS - 4.5%
Eli Lilly and Co. 20,250 1,497,285
Johnson & Johnson 124,025 6,686,188
Pfizer, Inc. 370,940 13,594,951
Shire Pharmaceuticals PLC, ADR (a) 70,050 2,165,946
Teva Pharmaceutical Industries
Ltd., ADR 62,420 4,057,300
-----------
Pharmaceuticals Total 28,001,670
-----------
HEALTH CARE TOTAL 42,724,162
INDUSTRIALS - 9.6%
AEROSPACE & DEFENSE - 0.4%
Boeing Co. 51,600 2,237,892
-----------
Aerospace & Defense Total 2,237,892
AIR FREIGHT & LOGISTICS - 1.2%
United Parcel Service, Inc., Class B 102,450 7,236,044
-----------
Air Freight & Logistics Total 7,236,044
AIRLINES - 0.2%
AMR Corp. (a) 62,900 956,080
-----------
Airlines Total 956,080
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES - 2.3%
Allied Waste Industries, Inc. (a) 145,500 1,837,665
Avery Dennison Corp. 33,400 2,116,558
Manpower, Inc. 65,100 2,913,225
Republic Services, Inc. 83,550 2,192,352
Waste Management, Inc. 195,675 5,576,738
-----------
Commercial Services & Supplies Total 14,636,538
ELECTRICAL EQUIPMENT - 0.3%
Emerson Electric Co. 34,350 2,146,188
-----------
Electrical Equipment Total 2,146,188
INDUSTRIAL CONGLOMERATES - 3.0%
3M Co. 54,450 4,248,189
General Electric Co. 447,200 14,542,944
-----------
Industrial Conglomerates Total 18,791,133
MACHINERY - 1.5%
Caterpillar, Inc. 39,150 2,965,613
ITT Industries, Inc. 57,550 4,345,025
Pall Corp. 77,700 2,033,409
-----------
Machinery Total 9,344,047
ROAD & RAIL - 0.7%
Canadian National Railway Co. 69,550 4,118,751
-----------
Road & Rail Total 4,118,751
-----------
INDUSTRIALS TOTAL 59,466,673
INFORMATION TECHNOLOGY - 14.0%
COMMUNICATIONS EQUIPMENT - 2.7%
Avaya, Inc. (a) 50,300 862,645
Cisco Systems, Inc. (a) 187,660 4,334,946
Emulex Corp. (a) 64,135 1,486,649
Motorola, Inc. 117,800 2,173,410
Nortel Networks Corp. (a) 190,100 1,516,998
QLogic Corp. (a) 62,800 2,625,040
QUALCOMM, Inc. 55,700 3,534,165
-----------
Communications Equipment Total 16,533,853
COMPUTERS & PERIPHERALS - 1.4%
Dell, Inc. (a) 46,800 1,528,020
International Business Machines Corp. 45,650 4,405,225
Seagate Technology (a) 147,500 2,551,750
-----------
Computers & Peripherals Total 8,484,995
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.2%
Flextronics International Ltd. (a) 76,275 1,380,578
-----------
Electronic Equipment & Instruments Total 1,380,578
INTERNET SOFTWARE & SERVICES - 0.8%
Check Point Software Technologies
Ltd. (a) 107,400 2,472,348
Yahoo!, Inc. (a) 59,650 2,648,460
-----------
Internet Software & Services Total 5,120,808
See Accompanying Notes to Financial Statements.
73
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA BALANCED FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
INFORMATION TECHNOLOGY - (CONTINUED)
IT SERVICES - 0.2%
Cognizant Technology Solutions
Corp. (a) 33,700 1,598,728
-----------
IT Services Total 1,598,728
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 4.7%
Advanced Micro Devices, Inc. (a) 110,900 1,663,500
Applied Micro Circuits Corp. (a) 298,200 1,926,372
Broadcom Corp., Class A (a) 55,700 2,260,306
Intel Corp. 149,775 4,377,923
Linear Technology Corp. 85,200 3,407,148
Marvell Technology Group Ltd. (a) 38,975 1,774,532
Microchip Technology, Inc. 63,500 1,809,750
National Semiconductor Corp. (a) 55,150 2,170,704
NVIDIA Corp. (a) 65,975 1,467,944
Silicon Laboratories, Inc. (a) 47,800 2,694,486
Taiwan Semiconductor Manufacturing
Co., Ltd., ADR (a) 273,149 2,838,018
Texas Instruments, Inc. 52,700 1,615,255
Xilinx, Inc. (a) 30,450 1,280,118
-----------
Semiconductors & Semiconductor Equipment Total 29,286,056
SOFTWARE - 4.0%
Citrix Systems, Inc. (a) 76,500 1,620,270
Computer Associates International, Inc. 65,650 1,743,664
Mercury Interactive Corp. (a) 56,450 2,740,083
Microsoft Corp. 439,975 11,659,338
Oracle Corp. (a) 313,365 4,036,141
Symantec Corp. (a) 47,590 1,957,853
VERITAS Software Corp. (a) 40,000 1,216,800
-----------
Software Total 24,974,149
-----------
INFORMATION TECHNOLOGY TOTAL 87,379,167
MATERIALS - 5.1%
CHEMICALS - 2.2%
Dow Chemical Co. 226,950 9,865,516
Praxair, Inc. 105,700 3,839,024
-----------
Chemicals Total 13,704,540
CONTAINERS & PACKAGING - 0.4%
Smurfit-Stone Container Corp. (a) 137,300 2,548,288
-----------
Containers & Packaging Total 2,548,288
METALS & MINING - 1.8%
Alcan, Inc. 120,800 5,753,704
Alcoa, Inc. 152,200 5,702,934
-----------
Metals & Mining Total 11,456,638
PAPER & FOREST PRODUCTS - 0.7%
International Paper Co. 92,900 4,111,754
-----------
Paper & Forest Products Total 4,111,754
-----------
MATERIALS TOTAL 31,821,220
TOTAL COMMON STOCKS
(Cost of $336,045,562) 409,562,995
SHARES VALUE ($)
- ----------------------------------------------------------------------
PREFERRED STOCK - 1.0%
CONSUMER DISCRETIONARY - 1.0%
MEDIA - 1.0%
News Corp., Ltd., ADR
(Cost of $5,407,999) 194,525 6,366,803
-----------
U.S. GOVERNMENT
& AGENCY SECURITIES - 13.7% PAR ($)
- ------------------------------------------------------
U.S. TREASURY NOTES & BONDS - 1.8%
U.S. Treasury Bonds:
6.250% 08/15/23 3,500,000 4,118,107
7.250% 05/15/16 1,135,000 1,449,076
U.S. Treasury Inflation Index Note,
3.625% 01/15/08 1,870,961 2,111,189
U.S. Treasury Note,
3.500% 11/15/06 3,500,000 3,637,403
-----------
U.S. Treasury Notes & Bonds Total 11,315,775
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) - 0.2%
7.000% 10/15/31 - 05/15/32 1,346,884 1,434,922
-----------
Government National Mortgage
Association (GNMA) Total 1,434,922
FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) - 5.1%
4.500% 10/15/18 - 12/01/18 25,358,713 25,686,835
5.000% 01/01/34 2,068,925 2,073,936
6.000% 03/01/17 - 08/01/17 3,096,812 3,265,844
6.500% 05/01/32 - 08/01/32 581,910 612,168
-----------
Federal Home Loan Mortgage
Corp. (FHLMC) Total 31,638,783
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) - 1.1%
5.000% 12/01/17 - 10/01/18 5,436,614 5,588,133
5.876% 07/01/32 (c) 1,100,184 1,147,097
-----------
Federal National Mortgage
Association (FNMA) Total 6,735,230
FEDERAL HOUSING ADMINISTRATION (FHA) - 0.2%
FHA Insured Project,
Pool #53-43077,
9.125% 03/25/33 1,548,594 1,579,565
-----------
Federal Housing Administration (FHA) Total 1,579,565
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS - 5.3%
FHLMC Multiclass Mtg. Partn.
Ctfs., Gtd.:
Series 2235, Class VN,
7.000% 06/15/14 2,324,539 2,358,167
Series 2462, Class JE,
6.500% 11/15/30 1,810,000 1,876,497
See Accompanying Notes to Financial Statements.
74
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA BALANCED FUND
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
U.S. GOVERNMENT
& AGENCY SECURITIES - (CONTINUED)
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS - (CONTINUED)
Series 2689, Class PC,
4.000% 09/15/15 3,120,000 3,132,585
Series 2695, Class AT,
4.000% 10/15/26 5,300,000 5,392,367
Series 2695, Class BO,
4.500% 08/15/28 720,000 725,467
Series 2695, Class DB,
4.000% 09/15/15 3,100,000 3,136,060
Series 2695, Class DG,
4.000% 10/15/18 3,600,000 3,372,332
Series 2700, Class PD,
4.500% 02/15/27 630,000 644,351
Series 2702, Class AB,
4.500% 07/15/27 1,312,012 1,343,205
FNMA Gtd. Remic Pass Thru Ctfs.:
Remic Tr. 2001-55, Class PC,
6.500% 10/25/31 3,552,159 3,708,727
Remic Tr. 2001-56, Class KD,
6.500% 08/15/31 1,089,459 1,110,599
Remic Tr. 2002-8, Class PD,
6.500% 07/25/30 3,600,000 3,701,951
Remic Tr. 2002-27, Class OG,
6.500% 12/25/30 1,566,908 1,586,314
Remic Tr. 2003-87, Class TG,
4.500% 11/25/14 630,000 642,278
-----------
Agency Collateralized Mortgage Obligations Total 32,730,900
-----------
TOTAL U.S. GOVERNMENT
& AGENCY SECURITIES
(Cost of $83,325,370) 85,435,175
CORPORATE NOTES & BONDS - 13.8%
INDUSTRIALS - 7.4%
Acetex Corp.,
10.875% 08/01/09 25,000 27,500
AdvancePCS,
8.500% 04/01/08 100,000 109,500
Airgas, Inc.,
9.125% 10/01/11 125,000 140,625
Alcan, Inc.,
7.250% 03/15/31 675,000 809,305
Allied Waste North America, Inc.,
10.000% 08/01/09 250,000 268,125
Allstate Life Global Funding II,
2.625% 10/22/06 (d) 1,000,000 1,006,250
American Axle & Manufacturing, Inc.,
9.750% 03/01/09 (d) 250,000 262,500
AmerisourceBergen Corp.,
8.125% 09/01/08 200,000 222,500
Anadarko Finance Co.,
7.500% 05/01/31 1,250,000 1,508,225
PAR ($) VALUE ($)
----------------------------------------------------------------------
Anthem, Inc.,
6.800% 08/01/12 925,000 1,067,348
Apogent Technologies, Inc.,
6.500% 05/15/13 125,000 130,937
Arch Western Finance LLC,
6.750% 07/01/13 (d) 170,000 178,500
AT&T Corp.,
8.750% 11/15/31 650,000 766,961
AT&T Wireless Services, Inc.,
8.750% 03/01/31 750,000 962,828
Autonation, Inc.,
9.000% 08/01/08 80,000 92,200
Ball Corp.,
7.750% 08/01/06 250,000 270,000
Boeing Co.,
6.125% 02/15/33 850,000 881,765
British Sky Broadcasting Group,
7.300% 10/15/06 100,000 111,144
Canadian National Railway Co.:
6.450% 07/15/06 (c) 300,000 326,418
7.195% 01/02/16 891,544 1,076,985
Canandaigua Brands, Inc.,
8.500% 03/01/09 250,000 260,625
Cascades, Inc.,
7.250% 02/15/13 115,000 120,175
Chesapeake Energy Corp.:
7.500% 09/15/13 145,000 156,600
8.375% 11/01/08 50,000 54,375
9.000% 08/15/12 20,000 23,075
Cinemark USA, Inc.,
9.000% 02/01/13 170,000 191,250
Coca-Cola Enterprises, Inc.,
6.750% 01/15/38 1,045,000 1,192,199
Comcast Corp.,
7.050% 03/15/33 375,000 413,588
Corrections Corp. of America,
7.500% 05/01/11 (d) 100,000 105,000
Cott Beverages, Inc.,
8.000% 12/15/11 250,000 272,500
Couche-Tard,
7.500% 12/15/13 (d) 75,000 80,250
Cox Enterprises, Inc.,
8.000% 02/15/07 (d) 850,000 970,445
DaimlerChrysler NA Holding Corp.,
8.500% 01/18/31 475,000 577,044
Deutsche Telekom International
Finance BV,
8.500% 06/15/10 525,000 637,865
Dex Media East LLC,
12.125% 11/15/12 100,000 118,000
Diageo Capital PLC,
3.375% 03/20/08 1,100,000 1,111,605
DirecTV Holdings LLC,
8.375% 03/15/13 170,000 193,375
EchoStar DBS Corp.,
5.750% 10/01/08 (d) 150,000 153,000
See Accompanying Notes to Financial Statements.
75
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA BALANCED FUND
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
CORPORATE NOTES & BONDS - (CONTINUED)
INDUSTRIALS - (CONTINUED)
EquiStar Chemicals LP:
10.125% 09/01/08 25,000 27,125
10.625% 05/01/11 25,000 27,250
Ethyl Corp.,
8.875% 05/01/10 50,000 54,000
Extended Stay America, Inc.,
9.875% 06/15/11 150,000 167,625
General Electric Co.,
5.000% 02/01/13 2,500,000 2,586,300
Grant Prideco, Inc.:
9.000% 12/15/09 220,000 246,400
9.625% 12/01/07 15,000 16,950
Harrah's Operating Co., Inc.,
7.875% 12/15/05 125,000 135,625
Hasbro, Inc.,
6.150% 03/15/08 125,000 133,125
Houghton Mifflin Co.,
9.875% 02/01/13 205,000 223,450
International Business Machines Corp.,
5.875% 11/29/32 1,700,000 1,752,581
Iron Mountain, Inc.,
7.750% 01/15/15 250,000 263,125
John Deere Capital Corp.,
3.900% 01/15/08 550,000 567,143
K&F Industries, Inc.,
9.625% 12/15/10 145,000 161,856
KB Home,
8.625% 12/15/08 250,000 280,625
Kennametal, Inc.,
7.200% 06/15/12 35,000 38,583
Key Energy Services, Inc.,
6.375% 05/01/13 105,000 109,200
Kroger Co.,
6.200% 06/15/12 650,000 715,995
L-3 Communications Corp.,
7.625% 06/15/12 200,000 222,000
Lamar Media Corp.,
7.250% 01/01/13 225,000 243,000
Lear Corp.,
7.960% 05/15/05 250,000 266,250
LIN Television Corp.,
6.500% 05/15/13 125,000 127,500
Lockheed Martin Corp.,
8.500% 12/01/29 700,000 938,721
Lowe's Companies, Inc.,
6.500% 03/15/29 700,000 782,705
MacDermid, Inc.,
9.125% 07/15/11 50,000 56,125
Marathon Oil Corp.,
6.800% 03/15/32 975,000 1,086,579
MGM Mirage, Inc.,
9.750% 06/01/07 235,000 270,250
Nalco Co.,
7.750% 11/15/11 (d) 75,000 78,375
PAR ($) VALUE ($)
- ------------------------------------------------------------------------
Newell Rubbermaid, Inc.,
4.000% 05/01/10 950,000 932,092
Nextel Communications, Inc.:
7.375% 08/01/15 275,000 296,312
9.375% 11/15/09 25,000 27,000
9.500% 02/01/11 10,000 11,225
Occidental Petroleum Corp.,
4.250% 03/15/10 775,000 790,237
Offshore Logistics, Inc.,
6.125% 06/15/13 205,000 200,900
Omnicare, Inc.,
8.125% 03/15/11 175,000 192,937
Owens-Illinois, Inc.,
7.350% 05/15/08 150,000 149,625
Park Place Entertainment Corp.,
9.375% 02/15/07 250,000 280,000
Peabody Energy Corp.,
6.875% 03/15/13 175,000 186,375
PepsiAmericas, Inc.,
3.875% 09/12/07 1,450,000 1,501,083
Pride International, Inc.,
9.375% 05/01/07 120,000 123,000
Province Healthcare Co.,
7.500% 06/01/13 125,000 128,437
R.H. Donnelley Financial Corp.,
10.875% 12/15/12 (d) 215,000 254,775
Rogers Cable, Inc.:
6.250% 06/15/13 50,000 52,086
7.875% 05/01/12 185,000 211,409
Royal Caribbean Cruises Ltd.,
6.875% 12/01/13 50,000 51,750
Russel Metals, Inc.,
6.375% 03/01/14 (d) 15,000 15,055
Scotts Co.,
6.625% 11/15/13 (d) 70,000 72,450
Select Medical Corp.,
9.500% 06/15/09 200,000 220,500
Silgan Holdings, Inc.,
6.750% 11/15/13 (d) 140,000 142,800
Sinclair Broadcasting Group, Inc.,
8.000% 03/15/12 220,000 237,600
Six Flags, Inc.:
9.500% 02/01/09 25,000 26,187
9.625% 06/01/14 (d) 50,000 52,625
Smurfit-Stone Container Corp.:
8.250% 10/01/12 55,000 59,400
8.375% 06/01/12 25,000 26,937
9.750% 02/01/11 35,000 39,025
Speedway Motorsports, Inc.,
6.750% 06/01/13 100,000 104,250
Starwood Hotels & Resorts Worldwide, Inc.,
7.375% 05/01/07 100,000 107,750
Station Casinos, Inc.,
6.875% 03/01/16 (d) 240,000 242,400
Suburban Propane Partners,
6.875% 12/15/13 (d) 70,000 71,837
Sun International Hotels,
8.875% 08/15/11 15,000 16,537
See Accompanying Notes to Financial Statements.
76
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA BALANCED FUND
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
CORPORATE NOTES & BONDS - (CONTINUED)
INDUSTRIALS - (CONTINUED)
Synagro Technologies, Inc.,
9.500% 04/01/09 50,000 54,250
TCI Communications, Inc.,
7.250% 08/01/05 685,000 735,621
Teekay Shipping Corp.,
8.875% 07/15/11 200,000 228,000
Time Warner, Inc.,
6.625% 05/15/29 875,000 912,249
Toll Corp.,
8.250% 12/01/11 175,000 194,250
TransDigm, Inc.,
8.375% 07/15/11 125,000 131,875
Triad Hospitals, Inc.,
8.750% 05/01/09 200,000 219,000
Union Pacific Corp.,
3.875% 02/15/09 1,000,000 1,010,610
United Technologies Corp.,
6.500% 06/01/09 1,685,000 1,924,489
Universal Compression, Inc.,
7.250% 05/15/10 65,000 68,900
Verizon Global Funding Corp.,
7.750% 12/01/30 1,200,000 1,445,676
Viacom, Inc.,
5.500% 05/15/33 425,000 410,291
Vintage Petroleum, Inc.,
7.875% 05/15/11 25,000 26,500
Wal-Mart Stores, Inc.,
4.125% 02/15/11 1,000,000 1,009,200
Waste Management, Inc.,
7.375% 08/01/10 825,000 964,870
Westinghouse Air Brake Technology,
6.875% 07/31/13 80,000 84,400
Westport Resources Corp.,
8.250% 11/01/11 265,000 292,825
Wyeth,
5.500% 02/01/14 700,000 729,491
XTO Energy, Inc.,
7.500% 04/15/12 200,000 233,500
Yum! Brands, Inc.,
8.500% 04/15/06 250,000 277,500
-----------
Industrials Total 46,207,143
FINANCIALS - 4.5%
American General Finance Corp.,
5.375% 09/01/09 475,000 513,551
Bank of America Corp.,
7.800% 02/15/10 (b) 2,225,000 2,664,193
Bank One Corp.,
2.625% 06/30/08 1,300,000 1,269,216
CIT Group, Inc.,
7.250% 08/15/05 890,000 959,491
Citigroup, Inc.,
7.250% 10/01/10 1,565,000 1,845,213
Countrywide Home Loans, Inc.,
2.875% 02/15/07 600,000 602,640
Ford Motor Credit Co.,
7.375% 10/28/09 2,005,000 2,196,999
General Motors Acceptance Corp.,
7.750% 01/19/10 1,550,000 1,755,003
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
Goldman Sachs Group, Inc.,
6.345% 02/15/34 745,000 751,966
Group 1 Automotive, Inc.,
8.250% 08/15/13 35,000 38,325
Health Care Property Investors, Inc.,
6.450% 06/25/12 850,000 946,075
Health Care REIT, Inc.,
7.500% 08/15/07 150,000 168,200
Household Finance Corp.,
6.400% 06/17/08 1,250,000 1,402,450
iStar Financial, Inc.:
6.000% 12/15/10 75,000 77,625
7.000% 03/15/08 25,000 26,875
8.750% 08/15/08 50,000 56,625
J.P. Morgan Chase & Co.,
5.750% 01/02/13 800,000 861,008
Lehman Brothers Holdings, Inc.,
4.000% 01/22/08 800,000 825,104
Merrill Lynch & Co., Inc.,
4.125% 01/15/09 1,000,000 1,025,670
Morgan Stanley:
4.250% 05/15/10 375,000 381,214
6.100% 04/15/06 700,000 757,673
SLM Corp.,
5.125% 08/27/12 1,900,000 1,963,403
US Bank NA,
6.375% 08/01/11 2,050,000 2,320,969
Wachovia Corp.,
3.500% 08/15/08 2,100,000 2,123,709
Washington Mutual, Inc.,
5.625% 01/15/07 1,275,000 1,376,248
Wells Fargo & Co.,
5.900% 05/21/06 1,090,000 1,177,756
-----------
Financials Total 28,087,201
UTILITIES - 0.7%
Centerpoint Energy Houston,
5.750% 01/15/14 1,050,000 1,110,301
Dominion Resources, Inc.,
2.800% 02/15/05 1,250,000 1,263,762
Kinder Morgan Energy Partners LP,
8.000% 03/15/05 1,475,000 1,566,258
Pogo Producing Co.,
8.250% 04/15/11 30,000 33,750
Sprint Capital Corp.,
6.875% 11/15/28 450,000 461,848
-----------
Utilities Total 4,435,919
INTERNATIONAL - 1.2%
Ontario Province,
3.500% 09/17/07 2,200,000 2,255,374
Quebec Province,
6.500% 01/17/06 2,100,000 2,274,426
Republic of Italy,
2.500% 03/31/06 1,300,000 1,314,716
United Mexican States,
8.000% 09/24/22 1,150,000 1,296,625
-----------
International Total 7,141,141
-----------
TOTAL CORPORATE NOTES & BONDS
(Cost of $80,970,319) 85,871,404
See Accompanying Notes to Financial Statements.
77
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA BALANCED FUND
PAR ($) VALUE ($)
----------------------------------------------------------------------
OTHER SECURITIZED LOANS - 4.4%
ASSET-BACKED SECURITIES - 1.1%
Cityscape Home Equity Loan Trust:
Series 1997-B, Class A7,
7.410% 05/25/28 1,146,204 1,145,714
Series 1997-4, Class A4,
7.440% 10/25/18 (c) 966,135 971,613
First Alliance Mortgage Trust,
Series 1996-1, Class A1,
7.340% 06/20/27 257,661 258,512
IMC Home Equity Loan Trust:
Series 1997-3, Class A6,
7.520% 08/20/28 734,889 736,506
Series 1997-5, Class A9,
7.310% 11/20/28 1,689,694 1,737,681
Salomon Brothers Mortgage
Securities VII,
Series 1998-AQ1, Class A5,
7.150% 06/25/28 1,891,840 1,899,029
-----------
Asset-Backed Securities Total 6,749,055
COLLATERALIZED MORTGAGE OBLIGATIONS - 2.3%
Bear Stearns Asset-Backed Securities, Inc.,
Series 2003-AC7, Class A1,
5.000% 01/25/34 (c) 3,139,517 3,256,904
Bear Stearns Mortgage Securities, Inc.,
Series 1996-2, Class A1,
0.650% 01/28/25 (c) 275,923 274,177
Countrywide Alternative Loan Trust,
Series 2004-2CB, Class 1A4,
1.490% 03/25/34 (c) 5,975,931 5,975,931
First Nationwide Trust,
Series 2000-1, Class IIA3,
8.000% 10/25/30 1,686,671 1,713,877
SACO I, Inc.,
Series 1995-1, Class A,
15.594% 09/25/24 (c) 45,422 45,422
Structured Asset Securities Corp:
Series 2003-14, Class 1A3,
5.500% 05/25/33 1,421,838 1,457,299
Series 2003-21, Class 1A3,
5.500% 07/25/33 1,797,952 1,855,079
-----------
Collateralized Mortgage Obligations Total 14,578,689
COMMERCIAL MORTGAGE-BACKED SECURITIES - 1.0%
GMAC Commercial Mortgage Asset Corp.,
Series 2001-FLAA, Class B1,
1.593% 06/15/13 (c)(d) 1,164,107 1,163,862
Nationslink Funding Corp.,
Series 1999-SL, Class A5,
6.888% 05/10/07 4,380,000 4,936,041
-----------
Commercial Mortgage-Backed Securities Total 6,099,903
TOTAL OTHER SECURITIZED LOANS
(Cost of $26,613,544) 27,427,647
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
SHORT-TERM OBLIGATIONS - 2.1%
U.S. TREASURY BILL - 0.5%
1.000% 05/06/04 2,800,000 2,795,534
-----------
REPURCHASE AGREEMENT - 1.6%
Repurchase agreement with State
Street Bank & Trust Co., dated
02/27/04, due 03/01/04 at 0.930%,
collateralized by a U.S. Treasury
Bill maturing 06/10/04, market
value $10,254,300 (repurchase
proceeds $10,051,779) 10,051,000 10,051,000
-----------
TOTAL SHORT-TERM OBLIGATIONS
(Cost of $12,846,534) 12,846,534
-----------
TOTAL INVESTMENTS - 100.9%
(COST OF $545,209,328) (e) 627,510,558
OTHER ASSETS & LIABILITIES, NET - (0.9)% (5,425,404)
NET ASSETS - 100.0% 622,085,154
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing.
(b) Investments in affiliates during the six months ended February 29, 2004:
Security Name: Bank of America Corp. (As a result of a merger effective
April 1, 2004, Bank of America Corp. became the parent company of the
Investment Advisor.)
Shares as of 08/31/03: 110,610
Shares sold: (95,350)
Shares as of 02/29/04: 15,260
Net realized gain or loss: $2,860,757
Dividend income earned: $ 120,416
Value at end of period: $1,250,099
Par as of 08/31/03: $2,225,000
Par as of 02/29/04: $2,225,000
Net realized gain or loss: $ --
Interest income earned: $ 86,775
Value at end of period: $2,664,193
(c) Variable rate security. The rate reported is the rate in effect at February
29, 2004.
(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 February 29, 2004, the value
of these securities amounted to $4,850,124, which represents 0.8% of net
assets.
(e) Cost for federal income tax purposes is $545,501,760.
ACRONYM NAME
------- ----
ADR American Depositary Receipt
See Accompanying Notes to Financial Statements.
78
INVESTMENT PORTFOLIO____________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA SHORT TERM BOND FUND
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
U.S. GOVERNMENT
& AGENCY SECURITIES - 18.4%
U.S. TREASURY NOTES & BONDS - 1.1%
U.S. Treasury Inflation Index Notes,
3.625% 01/15/08 5,162,256 5,825,079
-----------
U.S. Treasury Notes & Bonds Total 5,825,079
U.S. AGENCY BONDS - 0.3%
Federal Home Loan Bank,
3.875% 12/15/04 (a) 400,000 408,492
Morocco Government AID Bond,
1.218% 05/01/23 (b) 487,500 480,188
Small Business Administration,
1.625% 06/25/22 (b) 618,628 619,363
-----------
U.S. Agency Bonds Total 1,508,043
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) - 0.4%
6.500% 09/15/13-07/15/32 1,640,833 1,737,614
7.000% 11/15/13-08/15/29 530,531 567,852
-----------
Government National Mortgage
Association (GNMA) Total 2,305,466
FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) - 7.6%
4.500% 08/01/18-12/01/18 27,804,687 28,115,338
5.000% 08/01/33 1,937,123 1,941,909
5.500% 05/01/17-12/01/17 8,619,446 8,988,194
6.000% 10/01/06-08/01/17 1,447,119 1,520,288
7.000% 05/01/19 1,029 1,070
7.500% 09/01/15 286,816 307,368
8.500% 07/01/30 246,406 266,292
-----------
Federal Home Loan Mortgage Corp.
(FHLMC) Total 41,140,459
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) - 1.8%
5.500% 02/01/18 4,687,158 4,888,340
6.000% 03/01/09-05/01/17 3,412,207 3,570,437
6.500% 03/01/12-07/01/32 190,874 202,494
7.500% 08/01/15 240,103 258,026
8.000% 05/01/05-07/01/31 694,236 750,522
-----------
Federal National Mortgage Association
(FNMA) Total 9,669,819
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS - 7.2%
FHLMC:
Series 2387, Class D,
5.500% 12/15/26 106,225 106,349
Series 2500, Class PE,
6.000% 06/15/31 1,430,000 1,484,341
Series 2617, Class UA,
3.000% 06/15/09 4,250,000 4,300,366
Series 2695, Class AT,
4.000% 10/15/26 7,670,000 7,803,671
Series 2695, Class DB,
4.000% 09/15/15 3,980,000 4,026,297
Multi-class Mtg. Partn. Ctfs., Gtd.:
Series 1138, Class G,
8.500% 09/15/06 70,865 70,884
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
Series 1283, Class K,
7.000% 06/15/22 387,757 398,478
Series 1558, Class C,
5.500% 12/15/26 190,791 193,775
FNMA:
Series 2001-34, Class AE,
6.000% 07/25/29 801,526 808,688
Series 2001-55, Class PC,
6.500% 10/25/31 1,325,953 1,384,397
Series 2002-42, Class A,
6.000% 01/25/16 810,588 827,441
Series 2002-95, Class EB,
5.000% 04/25/31 8,577,467 8,767,517
Series 2003-92, Class FA,
1.640% 09/25/18 (b) 5,884,753 5,885,584
Gtd. Remic Pass Thru Ctfs.:
Remic Tr. 1991-146, Class Z,
8.000% 10/25/06 28,008 29,594
Remic Tr. 1993-92, Class C,
(c) 05/25/23 1,295,000 981,197
Remic Tr. 1998-36, Class GA,
6.000% 12/18/27 973,602 989,730
GNMA, Gtd. Remic Pass Thru Ctfs.:
Remic Tr. 1997-7, Class PC,
5.000% 05/16/27 1,224,807 1,243,352
Remic Tr. 2002-40, Class UL,
6.500% 11/20/31 30,000 30,868
-----------
Agency Collateralized Mortgage
Obligations Total 39,332,529
-----------
TOTAL U.S. GOVERNMENT
& AGENCY SECURITIES
(Cost of $98,430,581) 99,781,395
CORPORATE NOTES & BONDS - 39.5%
INDUSTRIAL - 17.3%
Alcan, Inc.
1.580% 12/08/05 (b)(d) 3,500,000 3,500,035
Anthem, Inc.,
4.875% 08/01/05 2,225,000 2,322,700
AOL Time Warner, Inc.,
6.125% 04/15/06 2,460,000 2,655,422
AT&T Corp.,
6.000% 03/15/09 1,650,000 1,779,954
AT&T Wireless Services, Inc.
7.500% 05/01/07 1,970,000 2,233,015
Bell Atlantic Financial Services, Inc.
7.600% 03/15/07 600,000 681,570
Boeing, Inc.,
8.100% 11/15/06 1,820,000 2,076,784
Bottling Group LLC,
2.450% 10/16/06 4,300,000 4,309,675
Canadian National Railway Co.,
6.450% 07/15/06 460,000 500,508
Caterpillar Financial Services Corp.,
2.500% 10/03/06 5,000,000 5,026,100
See Accompanying Notes to Financial Statements.
79
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA SHORT TERM BOND FUND
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
CORPORATE NOTES & BONDS - (CONTINUED)
INDUSTRIALS - (CONTINUED)
ChevronTexaco Capital Co.,
3.500% 09/17/07 3,350,000 3,440,082
Coca-Cola Enterprises, Inc.,
8.000% 01/04/05 650,000 686,153
Colgate-Palmolive Co.,
1.245% 08/16/04 (b) 3,000,000 3,000,000
Conoco, Inc.,
5.900% 04/15/04 150,000 150,815
ConocoPhillips,
8.500% 05/25/05 3,165,000 3,431,683
Costco Wholesale Corp.,
5.500% 03/15/07 640,000 693,670
Cox Enterprises, Inc.,
8.000% 02/15/07 (d) 1,300,000 1,484,210
CSX Corp.,
6.460% 06/22/05 2,250,000 2,382,165
DaimlerChrysler NA Holding Corp.,
4.750% 01/15/08 1,575,000 1,626,818
Devon Energy Corp.
2.750% 08/01/06 2,825,000 2,836,893
Fortune Brands, Inc.,
2.875% 12/01/06 3,275,000 3,316,134
Gannett Co., Inc.,
4.950% 04/01/05 2,000,000 2,074,180
General Mills, Inc.,
2.625% 10/24/06 2,800,000 2,801,820
GTE Southwest, Inc.,
6.000% 01/15/06 3,725,000 3,992,157
Honeywell International, Inc.,
5.125% 11/01/06 3,120,000 3,333,782
International Business Machines Corp.:
2.375% 11/01/06 2,900,000 2,908,642
4.250% 09/15/09 600,000 623,748
Jones Intercable, Inc.,
7.625% 04/15/08 1,875,000 2,160,075
Kellogg Co.,
6.000% 04/01/06 1,250,000 1,346,050
Kroger Co.,
7.650% 04/15/07 1,585,000 1,796,772
Lockheed Martin Corp.,
7.700% 06/15/08 990,000 1,161,933
Lowe's Companies, Inc.,
7.500% 12/15/05 1,675,000 1,842,098
Marathon Oil Corp.,
5.375% 06/01/07 2,725,000 2,924,606
Newell Rubbermaid, Inc.,
2.000% 05/01/05 3,725,000 3,722,542
Procter & Gamble Co.,
4.750% 06/15/07 725,000 773,336
Target Corp.,
5.950% 05/15/06 1,000,000 1,082,710
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
Union Pacific Corp.,
3.875% 02/15/09 1,825,000 1,844,363
United Technologies Corp.,
4.875% 11/01/06 2,475,000 2,636,519
USA Waste Services, Inc.,
7.125% 10/01/07 2,430,000 2,740,408
Wal-Mart Stores, Inc.,
4.125% 02/15/11 1,000,000 1,009,200
WellPoint Health Networks, Inc.,
6.375% 06/15/06 2,350,000 2,561,970
Wyeth,
4.125% 03/01/08 2,100,000 2,199,477
-----------
Industrial Total 93,670,774
FINANCIAL - 18.0%
Allstate Financial Global Fund II,
2.625% 10/22/06 (d) 2,950,000 2,968,438
American Express Credit Corp.,
3.000% 05/16/08 4,000,000 3,977,160
American General Finance Corp.,
3.000% 11/15/06 4,500,000 4,552,605
Bank of America Corp.,
6.625% 10/15/07 (e) 5,075,000 5,710,289
Bank One Corp.,
2.625% 06/30/08 3,100,000 3,026,592
Bear Stearns Co., Inc.,
6.500% 05/01/06 2,600,000 2,836,964
CIT Group, Inc.:
7.250% 08/15/05 125,000 134,760
7.625% 08/16/05 1,065,000 1,153,725
Citigroup, Inc.,
6.750% 12/01/05 2,700,000 2,936,628
Countrywide Home Loans, Inc.:
2.875% 02/15/07 500,000 502,200
5.250% 06/15/04 1,175,000 1,188,160
Credit Suisse First Boston USA, Inc.,
5.750% 04/15/07 2,375,000 2,589,391
Equitable Companies,
9.000% 12/15/04 2,925,000 3,096,083
Fifth Third Bank,
2.700% 01/30/07 2,075,000 2,091,144
Ford Motor Credit Co.,
7.375% 10/28/09 5,425,000 5,944,498
General Electric Capital Corp.,
7.250% 05/03/04 515,000 520,315
General Motors Acceptance Corp.,
7.750% 01/19/10 4,000,000 4,529,040
Goldman Sachs Group, Inc.,
4.125% 01/15/08 2,560,000 2,654,336
Health Care Property Investors, Inc.,
6.875% 06/08/05 2,075,000 2,184,145
Household Finance Corp.,
6.400% 06/17/08 3,225,000 3,618,321
J.P. Morgan Chase & Co.,
3.125% 12/11/06 4,000,000 4,064,440
See Accompanying Notes to Financial Statements.
80
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA SHORT TERM BOND FUND
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
CORPORATE NOTES & BONDS - (CONTINUED)
FINANCIAL - (CONTINUED)
Lehman Brothers Holdings, Inc.:
4.000% 01/22/08 2,500,000 2,578,450
8.750% 03/15/05 500,000 536,710
Merrill Lynch & Co., Inc.,
2.470% 03/10/06 2,460,000 2,484,280
Morgan Stanley,
6.100% 04/15/06 2,500,000 2,705,975
Security Capital Group, Inc.,
7.150% 06/15/07 6,315,000 7,147,633
U.S. Bancorp,
3.125% 03/15/08 5,750,000 5,765,065
USA Education, Inc.,
5.625% 04/10/07 4,000,000 4,344,840
Wachovia Corp.,
4.950% 11/01/06 3,300,000 3,519,186
Washington Mutual, Inc.,
5.625% 01/15/07 2,600,000 2,806,466
Wells Fargo & Co.,
5.900% 05/21/06 5,200,000 5,618,652
-----------
Financial Total 97,786,491
UTILITIES - 1.6%
Deutsche Telekom International
Finance BV,
8.500% 06/15/10 1,450,000 1,761,721
Dominion Resources, Inc.,
2.800% 02/15/05 2,050,000 2,072,571
FPL Group Capital, Inc.,
6.875% 06/01/04 250,000 253,175
Kinder Morgan Energy Partners LP,
8.000% 03/15/05 915,000 971,611
Sprint Capital Corp.,
6.375% 05/01/09 1,250,000 1,375,175
TCI Communications, Inc.,
7.250% 08/01/05 1,125,000 1,208,138
Virginia Electric & Power Co.,
5.375% 02/01/07 1,200,000 1,284,444
-----------
Utilities Total 8,926,835
INTERNATIONAL - 2.6%
Canadian Government Bond,
6.750% 08/28/06 1,000,000 1,113,130
Province of Ontario,
3.500% 09/17/07 3,500,000 3,588,095
Quebec Province:
5.500% 04/11/06 4,125,000 4,396,260
6.500% 01/17/06 1,100,000 1,191,366
Republic of Italy,
2.500% 03/31/06 1,950,000 1,972,074
United Mexican States,
4.625% 10/08/08 2,000,000 2,048,000
-----------
International Total 14,308,925
-----------
TOTAL CORPORATE NOTES & BONDS
(Cost of $211,005,218) 214,693,025
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
OTHER SECURITIZED LOANS - 34.8%
ASSET-BACKED SECURITIES - 13.7%
Americredit Automobile Receivables Trust:
Series 2000-1, Class B,
7.160% 09/05/05 1,525,683 1,550,659
Series 2001-B, Class A4,
5.370% 06/12/08 919,707 949,534
Chase Manhattan Auto Owner Trust,
Series 2000-A, Class A4,
6.260% 06/15/07 1,212,900 1,242,082
Cityscape Home Equity Loan Trust,
Series 1997-C, Class A3,
7.380% 07/25/28 16,046 16,080
Ford Credit Auto Owner Trust,
Series 2002-B, Class A3A,
4.140% 12/15/05 2,160,425 2,183,196
Harley Davidson Motorcycle Trust,
Series 2002-2, Class A2,
3.090% 06/15/10 1,525,000 1,562,668
Honda Auto Receivables Owner Trust:
Series 2001-2, Class A4,
5.090% 10/18/06 2,750,000 2,772,770
Series 2002-3, Class A3,
3.000% 05/18/06 5,049,198 5,099,791
IMC Home Equity Loan Trust:
Series 1995-3, Class A5,
7.500% 04/25/26 1,254,825 1,254,544
Series 1997-3, Class A6,
7.520% 08/20/28 437,994 438,958
Series 1997-3, Class A7,
7.080% 08/20/28 227,268 227,759
Keycorp Student Loan Trust:
Series 1997-1, Class A2,
1.827% 01/27/23 (d) 4,317,500 4,375,424
Series 2003-A, Class 2A2,
1.434% 10/25/25 (b) 11,580,000 11,621,920
Money Store Home Equity Trust,
Series 1998-A, Class AF7,
6.870% 04/15/39 2,000,000 2,039,640
Nissan Auto Receivables Owner Trust,
Series 2002-B, Class A4,
4.600% 09/17/07 2,500,000 2,587,275
Residential Asset Mortgage Products,
Series 2003-RS8, Class AII8,
1.430% 09/25/33 3,688,806 3,694,118
Residential Funding Mortgage
Securities I, Inc., Series 2003-HS3,
Class A2B,
1.430% 08/25/33 257,710 257,964
SLM Student Loan Trust:
Series 1996-1, Class CTFS,
1.927% 07/25/11 (b) 5,500,000 5,555,990
Series 1996-4, Class CTFS,
1.877% 07/25/11 (b) 6,030,000 6,036,271
Series 1997-2, Class A2,
1.487% 01/25/10 (b) 1,671,747 1,672,301
See Accompanying Notes to Financial Statements.
81
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA SHORT TERM BOND FUND
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
OTHER SECURITIZED LOANS - (CONTINUED)
ASSET-BACKED SECURITIES - (CONTINUED)
Series 1997-4, Class CTFS,
1.947% 01/25/13 (b) 8,950,000 9,070,266
Series 2001-2, Class A1T,
1.717% 07/27/09 (b) 6,848,069 6,865,121
Toyota Auto Receivables Owner Trust,
Series 2001-C, Class A4,
4.720% 09/15/08 1,675,000 1,715,853
University Support Services Inc.,
Series 1995-A, Class A,
1.370% 09/20/15 1,957,638 1,979,133
-----------
Asset-Backed Securities Total 74,769,317
COLLATERALIZED MORTGAGE OBLIGATIONS - 20.3%
ABN Amro Mortgage Corp.,
Series 2002-1, Class IA2,
6.500% 02/25/32 8,653,502 8,737,692
Advanta Mortgage Loan Trust,
Series 1999-3, Class A4,
7.750% 10/25/26 275,850 286,332
Amersco Residential Securities
Mortgage Loan & Trust:
Series 1997-2, Class A9,
1.350% 06/25/27 175,932 175,969
Series 1998-3, Class A7
1.330% 07/25/28 329,355 330,488
Bank of America Mortgage Securities,
Series 2003-1, Class 2A2,
5.250% 02/25/18 (e) 3,383,499 3,444,199
Bear Stearns Asset-Backed Securities, Inc.:
Series 2002-AC5, Class 2A4,
5.625% 11/25/32 344,319 344,560
Series 2003-AC2, Class A3,
3.500% 06/25/33 5,611,987 5,603,007
Countrywide Home Loans, Inc.:
Series 1999-A1, Class A1,
6.750% 03/25/29 65,092 65,337
Series 2002-32, Class 2A3,
5.000% 01/25/18 2,246,831 2,263,907
Series 2002-J5, Class 1A1,
5.750% 01/25/33 491,969 502,290
Series 2003-J7, Class 4A2,
1.490% 08/25/18 (b) 12,537,615 12,457,750
Series 2004-2CB, Class 1A4,
1.490% 03/25/34 1,238,792 1,238,792
Series 2004-J2, Class A2,
1.610% 03/25/34 10,600,000 10,616,960
First Horizon Mortgage Pass-Through Trust:
Series 2003-2, Class 2A1,
1.590% 03/25/18 (b) 10,722,026 10,780,890
Series 2003-4, Class 2A2,
1.590% 06/25/18 (b) 3,170,783 3,184,861
GMAC Mortgage Corp. Loan Trust,
Series 2003-J3, Class A1,
1.590% 05/25/18 (b) 6,167,358 6,167,359
Ocwen Residential MBS Corp.,
Series 1998-R1, Class A1,
7.000% 10/25/40 (d) 334,817 348,364
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
PNC Mortgage Securities Corp.:
Series 1996-PR1, Class A,
(c) 04/28/27 (b)(d) 71,344 69,203
Series 1998-12, Class 4A5,
6.475% 01/25/29 11,084 11,121
Series 1998-14, Class 2A1,
6.250% 01/25/14 1,633,609 1,676,998
Residential Accredited Loans, Inc.,
Series 2002-QS9, Class A1,
1.690% 07/25/32 (b) 364,292 364,547
Residential Asset Securitization Trust:
Series 2002-A14J, Class A14,
6.000% 01/25/33 1,566,527 1,621,455
Series 2003-A15, Class 1A2,
1.540% 02/25/34 11,350,116 11,337,548
Residential Funding Mortgage
Securities I, Inc.:
Series 1999-S25, Class A1,
6.750% 12/25/14 246,016 246,811
Series 2002-S16, Class A7,
5.500% 10/25/17 1,334,676 1,347,756
Series 2003-S14, Class A5,
1.490% 07/25/18 11,872,055 11,826,703
SACO I, Inc.,
Series 1997-2, Class 1A5,
7.000% 08/25/36 (d) 1,280,629 1,312,645
Structured Asset Securities Corp.:
Series 2002-17, Class 1A3,
6.000% 09/25/32 1,220,753 1,234,230
Series 2003-14, Class 1A3,
5.500% 05/25/33 710,919 728,650
Washington Mutual Mortgage Securities Corp.:
Series 2002-MS7, Class 1A14,
6.000% 11/25/32 1,172,290 1,172,044
Series 2003-MS5, Class 1A4,
1.590% 03/25/18 (b) 5,729,686 5,761,830
Series 2003-S4, Class 1A3,
1.590% 06/25/18 (b) 4,600,457 4,626,541
Wells Fargo Mortgage-Backed Securities Trust,
Series 2002-D, Class 1A1,
5.500% 08/25/32 370,947 380,736
Collateralized Mortgage Obligations Total 110,267,575
COMMERCIAL MORTGAGE-BACKED SECURITIES - 0.8%
GMAC Commercial Mortgage Asset Corp.,
Series 2001-FLAA, Class B1,
1.594% 06/15/13 (b)(d) 1,492,173 1,491,860
Merrill Lynch Mortgage Investors, Inc.,
Series 1996-C1, Class A3,
7.420% 04/25/28 300,115 310,700
Nationslink Funding Corp.,
Series 1999-SL, Class A5,
6.888% 11/10/30 2,260,000 2,546,907
-----------
Commercial Mortgage-Backed Securities Total 4,349,467
-----------
TOTAL OTHER SECURITIZED LOANS
(Cost of $189,141,224) 189,386,359
See Accompanying Notes to Financial Statements.
82
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA SHORT TERM BOND FUND
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
SHORT-TERM OBLIGATIONS - 6.6%
U.S. TREASURY BILL - 2.8%
0.860% 05/06/04 15,275,000 15,250,916
-----------
REPURCHASE AGREEMENT - 3.8%
Repurchase agreement with State
Street Bank & Trust Co., dated
02/27/04, due 03/01/04 at 0.930%,
collateralized by U.S. Treasury
Notes with various maturities
to 08/15/13, market value
$21,313,594 (repurchase
proceeds $20,893,619) 20,892,000 20,892,000
-----------
TOTAL SHORT-TERM OBLIGATIONS
(Cost of $36,142,916) 36,142,916
-----------
TOTAL INVESTMENTS - 99.3%
(COST OF $534,719,939)(f) 540,003,695
OTHER ASSETS & LIABILITIES, NET - 0.7% 3,480,576
NET ASSETS - 100.0% 543,484,271
NOTES TO INVESTMENT PORTFOLIO:
(a) This security with a market value of $408,492 is being used to collateralize
open futures contracts.
(b) Variable rate security. The rate reported is the rate in effect at February
29, 2004.
(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 February 29, 2004, these
securities amounted to $15,550,179, which represents 2.9% of net assets.
(e) Investments in affiliates during the six months ended February 29, 2004:
Security Name: Bank of America Corp. (As a result of a merger effective
April 1, 2004, Bank of America Corp. became the parent company of the
Investment Advisor.)
Par as of 08/31/03: $5,075,000
Par as of 02/29/04: $5,075,000
Net realized gain or loss: $ --
Interest income earned: $ 168,109
Value at end of period: $5,710,289
Security Name: Bank of America Mortgage Securities (As a result of a merger
effective April 1, 2004, Bank of America Corp. became the parent company of
the Investment Advisor.)
Par as of 08/31/03: $ --
Par purchased: $3,383,499
Par as of 02/29/04: $3,383,499
Net realized gain or loss: $ --
Interest income earned: $ 60,687
Value at end of period: $3,444,199
(f) Cost for federal income tax purposes is $534,647,085.
Short futures contracts open at February 29, 2004:
PAR VALUE UNREALIZED
COVERED BY DEPRECIATION AT
TYPE CONTRACTS EXPIRATION 02/29/04
- ----------------------------------------------------------------------
2 Yr. U.S.
Treasury Notes $49,000,000 June-2004 $(68,907)
--------
See Accompanying Notes to Financial Statements.
83
INVESTMENT PORTFOLIO____________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FIXED INCOME SECURITIES FUND
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
U.S. GOVERNMENT & AGENCY SECURITIES - 39.7%
U.S. TREASURY NOTES & BONDS - 2.2%
U.S. Treasury Bond,
7.250% 05/15/16 2,825,000 3,606,731
U.S. Treasury Inflation Index Note,
3.625% 01/15/08 4,460,645 5,033,383
-----------
U.S. Treasury Notes & Bonds Total 8,640,114
FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) - 13.5%
3.500% 10/01/18 5,200,022 4,953,900
4.500% 05/01/18-01/01/19 39,980,613 40,427,300
5.000% 08/01/33-01/01/34 2,670,065 2,676,580
6.000% 05/01/17-07/01/17 5,960,220 6,285,544
6.500% 08/01/32 386,797 406,910
-----------
Federal Home Loan Mortgage Corp.
(FHLMC) Total 54,750,234
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) - 4.4%
5.000% 06/01/18-08/01/18 11,946,142 12,278,955
5.976% 06/01/32 (a) 103,109 107,056
6.000% 03/01/09-03/01/33 4,142,484 4,289,590
6.149% 07/01/32 (a) 1,000,959 1,040,346
6.500% 07/01/32 150,271 158,111
-----------
Federal National Mortgage Association
(FNMA) Total 17,874,058
FEDERAL HOUSING ADMINISTRATION (FHA) - 0.5%
FHA Insured Project,
Pool #071-94016,
8.625% 05/01/23 2,111,046 2,153,266
-----------
Federal Housing Administration (FHA) Total 2,153,266
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) - 0.7%
5.000% 08/15/33-01/15/34 2,937,483 2,949,953
-----------
Government National Mortgage
Association (GNMA) Total 2,949,953
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS - 18.4%
FHLMC GNMA Multiclass Mtg. Partn. Ctfs. Gtd.,
Series 24, Class J,
6.250% 11/25/23 2,310,000 2,456,613
FHLMC Multiclass Mtg. Partn. Ctfs. Gtd.:
Series 1558, Class C,
6.500% 07/15/23 760,874 772,776
Series 1602, Class PJ,
6.500 10/15/23 510,000 556,730
Series 2085, Class PD,
6.250% 11/15/26 558,272 559,965
Series 2113, Class MU,
6.500% 08/15/27 717,683 726,942
Series 2235, Class VN,
7.000% 06/15/14 2,891,073 2,932,896
Series 2462, Class JE,
6.500% 11/15/30 4,680,000 4,851,938
Series 2500, Class PE,
6.000% 06/15/31 5,630,000 5,843,945
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
Series 2687, Class MQ,
4.500% 10/15/18 3,166,000 3,278,456
Series 2689, Class PC,
4.000% 09/15/15 5,900,000 5,923,798
Series 2695, Class AT,
4.000% 10/15/26 7,720,000 7,854,543
Series 2695, Class BO,
4.500% 08/15/28 2,430,000 2,448,451
Series 2695, Class DB,
4.000% 09/15/15 7,155,000 7,238,229
Series 2695, Class DG,
4.000% 10/15/18 9,000,000 8,430,830
Series 2700, Class PD,
4.500% 02/15/27 2,050,000 2,096,697
Series 2702, Class AB,
4.500% 07/15/27 6,880,000 7,043,571
FNMA Gtd. Remic Pass Thru Ctfs.:
Remic Tr. 1996-W2, Class A7,
7.800% 06/25/26 715,103 778,985
Remic Tr. 2001-55, Class PC,
6.500% 10/25/31 3,836,890 4,006,008
Remic Tr. 2001-56, Class KD,
6.500% 07/25/30 2,309,075 2,353,881
Remic Tr. 2003-87, Class TG,
4.500% 11/25/14 2,050,000 2,089,951
GNMA Gtd. Remic Pass Thru Ctfs.,
Remic Tr. 2003-97, Class NC,
4.500% 04/16/28 2,090,000 2,140,911
-----------
Agency Collateralized Mortgage
Obligations Total 74,386,116
TOTAL U.S. GOVERNMENT
& AGENCY SECURITIES
(Cost of $158,065,456) 160,753,741
CORPORATE NOTES & BONDS - 43.3%
INDUSTRIALS - 26.6%
Acetex Corp.,
10.875% 08/01/09 215,000 236,500
AdvancePCS,
8.500% 04/01/08 250,000 273,750
Airgas, Inc.,
9.125% 10/01/11 215,000 241,875
Alcan, Inc.,
7.250% 03/15/31 2,400,000 2,877,528
Allied Waste North America, Inc.,
10.000% 08/01/09 550,000 589,875
American Axle & Manufacturing, Inc.,
9.750% 03/01/09 600,000 630,000
AmerisourceBergen Corp.,
8.125% 09/01/08 400,000 445,000
Anadarko Finance Co.,
7.500% 05/01/31 1,610,000 1,942,594
Anheuser-Busch Companies, Inc.,
5.750% 04/01/10 530,000 584,442
See Accompanying Notes to Financial Statements.
84
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FIXED INCOME SECURITIES FUND
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
CORPORATE NOTES & BONDS - (CONTINUED)
INDUSTRIALS - (CONTINUED)
Anthem, Inc.,
6.800% 08/01/12 1,550,000 1,788,529
Apogent Technologies, Inc.,
6.500% 05/15/13 200,000 209,500
Arch Western Finance LLC,
6.750% 07/01/13 (b) 380,000 399,000
AT&T Corp.,
8.750% 11/15/31 1,390,000 1,640,117
AT&T Wireless Services, Inc.,
8.750% 03/01/31 1,200,000 1,540,524
Autonation, Inc.,
9.000% 08/01/08 115,000 132,537
Ball Corp.,
7.750% 08/01/06 600,000 648,000
Boeing Co.:
5.125% 02/15/13 335,000 345,432
6.125% 02/15/33 1,475,000 1,530,121
BP Amoco PLC,
5.900% 04/15/09 1,800,000 2,012,742
British Sky Broadcasting Group,
7.300% 10/15/06 200,000 222,288
Canadian National Railway Co.,
7.195% 01/02/16 1,906,912 2,303,550
Canandaigua Brands, Inc.,
8.500% 03/01/09 650,000 677,625
Cascades, Inc.,
7.250% 02/15/13 235,000 245,575
Chesapeake Energy Corp.:
7.500% 09/15/13 320,000 345,600
8.125% 04/01/11 25,000 27,562
8.375% 11/01/08 165,000 179,437
9.000% 08/15/12 45,000 51,919
Cinemark USA, Inc.,
9.000% 02/01/13 435,000 489,375
Coca-Cola Enterprises, Inc.,
6.750% 01/15/38 1,000,000 1,140,860
Comcast Corp.,
7.050% 03/15/33 870,000 959,523
Corrections Corp. of America:
7.500% 05/01/11 75,000 78,750
7.500% 05/01/11 (b) 200,000 210,000
Costco Wholesale Corp.,
5.500% 03/15/07 1,900,000 2,059,334
Cott Beverages, Inc.,
8.000% 12/15/11 570,000 621,300
Couche-Tard,
7.500% 12/15/13 (b) 85,000 90,950
Cox Communications, Inc.,
7.875% 08/15/09 235,000 279,725
Cox Enterprises, Inc.,
8.000% 02/15/07 (b) 1,350,000 1,541,295
CSX Corp.,
4.875% 11/01/09 960,000 1,008,192
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
DaimlerChrysler NA Holding Corp.,
8.500% 01/18/31 1,175,000 1,427,425
Deutsche Telekom International
Finance BV,
8.500% 06/15/10 1,390,000 1,688,822
Dex Media East LLC,
12.125% 11/15/12 425,000 501,500
Diageo Capital PLC,
3.375% 03/20/08 2,570,000 2,597,113
DirecTV Holdings LLC,
8.375% 03/15/13 210,000 238,875
EchoStar DBS Corp.,
5.750% 10/01/08 (b) 375,000 382,500
EquiStar Chemicals LP:
10.125% 09/01/08 25,000 27,125
10.625% 05/01/11 100,000 109,000
Ethyl Corp.,
8.875% 05/01/10 50,000 54,000
Extended Stay America, Inc.,
9.875% 06/15/11 500,000 558,750
General Electric Co.,
5.000% 02/01/13 2,875,000 2,974,245
General Mills, Inc.,
2.625% 10/24/06 2,440,000 2,441,586
Grant Prideco, Inc.:
9.000% 12/15/09 460,000 515,200
9.625% 12/01/07 40,000 45,200
Group 1 Automotive, Inc.,
8.250% 11/15/13 40,000 43,800
Harrah's Operating Co., Inc.,
7.875% 12/15/05 250,000 271,250
Hasbro, Inc.,
6.150% 07/15/08 150,000 159,750
Houghton Mifflin Co.,
9.875% 02/01/13 405,000 441,450
International Business Machines Corp.,
5.875% 11/29/32 3,460,000 3,567,018
International Game Technology,
8.375% 05/15/09 250,000 298,125
International Paper Co.,
4.250% 01/15/09 510,000 520,399
Iron Mountain, Inc.,
8.625% 04/01/13 500,000 545,000
ITT Corp.,
6.750% 11/15/05 275,000 288,062
John Deere Capital Corp.,
3.900% 01/15/08 1,400,000 1,443,638
K & F Industries, Inc.,
9.625% 12/15/10 285,000 318,131
KB Home,
8.625% 12/15/08 500,000 561,250
Kennametal, Inc.,
7.200% 06/15/12 165,000 181,891
Key Energy Services, Inc.:
6.375% 05/01/13 170,000 176,800
8.375% 03/01/08 75,000 81,000
Kinder Morgan Energy Partners LP,
6.750% 03/15/11 2,000,000 2,273,280
See Accompanying Notes to Financial Statements.
85
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FIXED INCOME SECURITIES FUND
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
CORPORATE NOTES & BONDS - (CONTINUED)
INDUSTRIALS - (CONTINUED)
Kroger Co.,
7.650% 04/15/07 1,450,000 1,643,734
L-3 Communications Corp.,
7.625% 06/15/12 560,000 621,600
Lamar Media Corp.,
7.250% 01/01/13 325,000 351,000
Lear Corp.,
7.960% 05/15/05 600,000 639,000
LIN Television Corp.,
6.500% 05/15/13 300,000 306,000
Lockheed Martin Corp.,
8.500% 12/01/29 1,500,000 2,011,545
Lowe's Companies, Inc.,
6.500% 03/15/29 1,510,000 1,688,406
MacDermid, Inc.,
9.125% 07/15/11 115,000 129,087
Marathon Oil Corp.,
6.800% 03/15/32 2,450,000 2,730,378
MGM Mirage, Inc.:
6.000% 10/01/09 25,000 26,000
9.750% 06/01/07 325,000 373,750
Nalco Co.,
7.750% 11/15/11 (b) 175,000 182,875
Newell Rubbermaid, Inc.,
4.000% 05/01/10 2,545,000 2,497,027
Nextel Communications, Inc.:
7.375% 08/01/15 450,000 484,875
9.375% 11/15/09 125,000 135,000
9.500% 02/01/11 40,000 44,900
Occidental Petroleum Corp.,
4.250% 03/15/10 1,825,000 1,860,880
Offshore Logistics, Inc.,
6.125% 06/15/13 405,000 396,900
Omnicare, Inc.,
8.125% 03/15/11 275,000 303,187
Owens-Illinois, Inc.,
7.350% 05/15/08 250,000 249,375
Park Place Entertainment Corp.,
9.375% 02/15/07 600,000 672,000
Peabody Energy Corp.,
6.875% 03/15/13 400,000 426,000
Pepsi Bottling Holdings, Inc.,
5.625% 02/17/09 (b) 2,050,000 2,259,469
Phillips Petroleum Co.,
8.500% 05/25/05 2,675,000 2,900,396
Pogo Producing Co.,
8.250% 04/15/11 65,000 73,125
Pride International, Inc.,
9.375% 05/01/07 269,000 275,725
Procter & Gamble Co.,
4.750% 06/15/07 1,950,000 2,080,007
Province Healthcare Co.,
7.500% 06/01/13 275,000 282,563
PAR ($) VALUE ($)
----------------------------------------------------------------------
R.H. Donnelley Financial Corp.:
8.875% 12/15/10 (b) 50,000 56,250
10.875% 12/15/12 75,000 88,875
10.875% 12/15/12 (b) 360,000 426,600
Rogers Cable, Inc.,
7.875% 05/01/12 470,000 537,093
Royal Caribbean Cruises Ltd.
6.875% 12/01/13 100,000 103,500
Russel Metals, Inc.,
6.375% 03/01/14 (b) 25,000 25,091
Scotts Co.,
6.625% 11/15/13 (b) 175,000 181,125
Select Medical Corp.,
9.500% 06/15/09 500,000 551,250
Silgan Holdings, Inc.,
6.750% 11/15/13 (b) 385,000 392,700
Sinclair Broadcasting Group, Inc.,
8.000% 03/15/12 440,000 475,200
Six Flags, Inc.,
9.625% 06/01/14 (b) 100,000 105,250
Smurfit-Stone Container Corp.:
8.250% 10/01/12 130,000 140,400
9.750% 02/01/11 455,000 507,325
Speedway Motorsports, Inc.,
6.750% 06/01/13 200,000 208,500
Sprint Capital Corp.,
6.875% 11/15/08 950,000 975,014
Station Casinos, Inc.:
6.500% 02/01/14 (b) 40,000 40,500
6.875% 03/01/16 (b) 500,000 505,000
Suburban Propane Partners,
6.875% 12/15/13 (b) 150,000 153,938
Sun International Hotel,
8.875% 08/15/11 30,000 33,075
Synagro Technologies, Inc.,
9.500% 04/01/09 100,000 108,500
TCI Communications, Inc.,
7.250% 08/01/05 800,000 859,120
Teekay Shipping Corp.,
8.875% 07/15/11 525,000 598,500
Time Warner, Inc.,
6.625% 05/15/29 2,185,000 2,278,015
Toll Corp.,
8.250% 12/01/11 390,000 432,900
TransDigm, Inc.,
8.375% 07/15/11 300,000 316,500
Triad Hospitals, Inc.,
8.750% 05/01/09 600,000 657,000
Union Pacific Corp.,
3.875% 02/15/09 2,340,000 2,364,827
United Technologies Corp.,
7.125% 11/15/10 2,125,000 2,513,344
Universal Compression, Inc.,
7.250% 05/15/10 125,000 132,500
Verizon Global Funding Corp.,
7.750% 12/01/30 3,000,000 3,614,190
Viacom, Inc.,
5.500% 05/15/33 1,335,000 1,288,796
See Accompanying Notes to Financial Statements.
86
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FIXED INCOME SECURITIES FUND
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
CORPORATE NOTES & BONDS - (CONTINUED)
INDUSTRIALS - (CONTINUED)
Vintage Petroleum, Inc.:
7.875% 05/15/11 25,000 26,500
8.250% 05/01/12 25,000 27,375
Wal-Mart Stores, Inc.,
4.125% 02/15/11 1,020,000 1,029,384
Waste Management, Inc.,
7.375% 08/01/10 1,655,000 1,935,589
Westinghouse Air Brake,
6.875% 07/31/13 200,000 211,000
Westport Resources Corp.,
8.250% 11/01/11 360,000 397,800
Wyeth,
5.500% 02/01/14 1,710,000 1,782,042
XTO Energy, Inc.,
7.500% 04/15/12 350,000 408,625
Yum! Brands, Inc.,
8.500% 04/15/06 500,000 555,000
-----------
Industrials Total 108,022,108
FINANCIALS - 12.8%
Allstate Financial Global Fund II,
2.625% 10/22/06 (b) 2,500,000 2,515,625
American General Finance Corp.,
5.375% 09/01/09 850,000 918,986
Bank One Corp.,
2.625% 06/30/08 2,800,000 2,733,696
Bear Stearns & Co., Inc.,
6.500% 05/01/06 1,635,000 1,784,014
CIT Group, Inc.,
7.250% 08/15/05 970,000 1,045,738
Citigroup, Inc.,
7.250% 10/01/10 3,095,000 3,649,160
Countrywide Home Loan Bank,
2.875% 02/15/07 1,000,000 1,004,400
Ford Motor Credit Co.,
7.375% 10/28/09 3,700,000 4,054,312
General Electric Capital Corp.,
6.750% 03/15/32 665,000 759,550
General Motors Acceptance Corp.,
7.750% 01/19/10 3,600,000 4,076,136
Goldman Sachs Group, Inc.,
6.345% 02/15/34 1,550,000 1,564,492
Health Care Property Investors, Inc.,
6.450% 06/25/12 1,785,000 1,986,759
Health Care REIT, Inc.,
7.500% 08/15/07 500,000 560,665
Household Finance Corp.,
6.400% 06/17/08 2,550,000 2,860,998
iStar Financial, Inc.,
7.000% 03/15/08 200,000 215,000
J.P. Morgan Chase & Co.,
5.750% 01/02/13 2,545,000 2,739,082
Lehman Brothers Holdings, Inc.,
4.000% 01/22/08 1,000,000 1,031,380
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
Merrill Lynch & Co., Inc.,
4.125% 01/15/09 1,885,000 1,933,388
Morgan Stanley,
6.100% 04/15/06 1,650,000 1,785,943
SLM Corp.,
5.125% 08/27/12 2,900,000 2,996,773
US Bank NA,
6.375% 08/01/11 3,000,000 3,396,540
Wachovia Corp.,
3.500% 08/15/08 3,660,000 3,701,321
Wells Fargo & Co.,
4.875% 06/12/07 4,175,000 4,469,129
-----------
Financials Total 51,783,087
UTILITIES - 1.2%
Centerpoint Energy Houston,
5.750% 01/15/14 1,800,000 1,903,374
Dominion Resources, Inc.,
2.800% 02/15/05 2,750,000 2,780,277
-----------
Utilities Total 4,683,651
INTERNATIONAL - 2.7%
British Columbia Province,
5.375% 10/29/08 1,900,000 2,082,058
Hydro-Quebec,
6.970% 03/01/05 1,000,000 1,050,370
Ontario Province,
7.000% 01/30/07 2,490,000 2,803,964
Republic of Italy,
2.500% 03/31/06 2,750,000 2,781,130
United Mexican States,
8.000% 09/24/22 2,105,000 2,373,388
-----------
International Total 11,090,910
TOTAL CORPORATE NOTES & BONDS
(Cost of $165,843,053) 175,579,756
OTHER SECURITIZED LOANS - 12.1%
ASSET-BACKED SECURITIES - 4.3%
Cityscape Home Equity Loan Trust,
Series 1997-4, Class A4,
7.440% 10/25/18 (a) 656,972 660,697
ContiMortgage Home Equity
Loan Trust,
Series 1999-3, Class A6,
7.680% 12/25/29 (a) 2,700,000 2,851,308
IMC Home Equity Loan Trust:
Series 1995-3, Class A5,
7.500% 04/25/26 1,851,381 1,850,967
Series 1997-3, Class A6,
7.520% 08/20/28 1,610,877 1,614,421
Series 1997-5, Class A9,
7.310% 11/20/28 4,557,522 4,686,956
Nationslink Funding Corp.,
Series 1999-SL, Class A5,
6.888% 05/10/07 3,120,000 3,516,084
See Accompanying Notes to Financial Statements.
87
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FIXED INCOME SECURITIES FUND
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
OTHER SECURITIZED LOANS - (CONTINUED)
ASSET-BACKED SECURITIES - (CONTINUED)
New Century Home Equity
Loan Trust,
Series 1999-NCA, Class A7,
7.320% 07/25/29 (a) 1,161,293 1,192,532
Salomon Brothers Mortgage
Securities VII, Inc.,
Series 1998-AQ1, Class A5,
7.150% 06/25/28 1,177,145 1,181,618
-----------
Asset-Backed Securities Total 17,554,583
COLLATERALIZED MORTGAGE OBLIGATIONS - 7.2%
Bear Stearns Asset-Backed Securities, Inc.:
Series 2002-AC5, Class 2A4,
5.625% 11/25/32 667,979 668,447
Series 2003-AC7, Class A1,
5.000% 01/25/34 (a) 7,778,433 8,069,269
Bear Stearns Mortgage Securities, Inc.,
Series 1996-2, Class A1,
0.650% 01/28/25 (a) 231,327 229,863
Countrywide Alternative Loan Trust,
Series 2004-2CB, Class 1A4,
1.490% 03/25/34 (a) 4,291,174 4,291,174
Countrywide Home Loans, Inc.:
Series 2002-5, Class 2A1,
6.000% 04/25/17 1,203,535 1,220,541
Series 2003-49, Class A9,
4.648% 12/19/33 (a) 4,638,488 4,689,790
Credit Suisse First Boston
Mortgage Securities Corp.,
Series 2001-11, Class 1A3,
7.000% 06/25/31 256,255 266,646
IMPAC Secured Assets Common
Owner Trust,
Series 2002-3, Class A3,
6.360% 08/25/32 (a) 3,489,156 3,536,922
PNC Mortgage Securities Corp.,
Series 1998-12, Class 4A4,
6.500% 01/25/29 60,964 60,940
Residential Funding Mortgage Securities I,
Series 2002-S16, Class A7,
5.500% 10/25/17 1,048,216 1,058,489
Structured Asset Securities Corp.,
Series 2003-21, Class 1A3,
5.500% 07/25/33 4,930,467 5,087,125
-----------
Collateralized Mortgage Obligations Total 29,179,206
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
COMMERCIAL MORTGAGE-BACKED SECURITIES - 0.6%
GMAC Commercial Mortgage Asset Corp.,
Series 2001-FLAA, Class B1,
1.610% 06/15/13 (a)(b) 2,347,316 2,346,823
-----------
Commercial Mortgage-Backed Securities Total 2,346,823
TOTAL OTHER SECURITIZED LOANS
(Cost of $48,049,954) 49,080,612
SHORT-TERM OBLIGATIONS - 4.1%
U.S. TREASURY BILL - 1.6%
0.940% 05/06/04 6,500,000 6,489,632
-----------
REPURCHASE AGREEMENT - 2.5%
Repurchase agreement with State
Street Bank & Trust Co., dated
02/27/04, due 03/01/04 at 0.930%,
collateralized by a U.S. Treasury
Note maturing 05/13/04, market
value $10,359,038 (repurchase
proceeds $10,155,787) 10,155,000 10,155,000
-----------
Total Short-Term Obligations
(Cost of $16,644,632) 16,644,632
-----------
TOTAL INVESTMENTS - 99.2%
(COST OF $388,603,095) (c) 402,058,741
OTHER ASSETS & LIABILITIES, NET - 0.8% 3,417,590
NET ASSETS - 100.0% 405,476,331
NOTES TO INVESTMENT PORTFOLIO:
(a) Variable rate security. The rate reported is the rate in effect at February
29, 2004.
(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 February 29, 2004, the value
of these securities amounted to $11,814,991, which represents 2.9% of net
assets.
(c) Cost for federal income tax purposes is $389,209,424.
See Accompanying Notes to Financial Statements.
88
INVESTMENT PORTFOLIO____________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA NATIONAL MUNICIPAL BOND FUND
PAR VALUE ($)
- ----------------------------------------------------------------------
MUNICIPAL BONDS - 92.7%
ALASKA - 3.1%
Industrial Development & Export
Authority, Snettisham Hydroelectric,
Series 1:
Pre-refunded (AMT),
5.500% 01/01/08 5,000 5,579
Unrefunded (AMT),
5.500% 01/01/08 95,000 106,307
Municipal Bond Bank Authority, Series C,
5.500% 09/15/16 100,000 114,899
Palmer Valley Hospital Association,
5.350% 12/01/12 125,000 145,932
State Housing Finance Corp.,
Veterans Mortgage, Series A2 (AMT),
6.000% 06/01/15 115,000 122,519
-----------
Alaska Total 495,236
ARKANSAS - 1.7%
Little Rock Waste Disposal Revenue,
Series 2002,
5.000% 05/01/16 250,000 272,893
-----------
Arkansas Total 272,893
CALIFORNIA - 1.7%
State Department of Water Resource,
Power Supply Revenue,
Series 2002,
5.000% 05/01/16 250,000 274,037
-----------
California Total 274,037
COLORADO - 0.1%
Housing Finance Authority,
Single Family,
4.875% 04/01/07 25,000 25,186
-----------
Colorado Total 25,186
IDAHO - 0.6%
Health Facilities Authority, Bingham
Memorial Hospital Project,
5.850% 03/01/19 100,000 100,704
-----------
Idaho Total 100,704
ILLINOIS - 10.7%
Chicago Motor Fuel Tax Revenue,
Series 2003 A,
5.250% 01/01/17 250,000 281,417
Chicago Park District Aquarium
& Museum,
5.800% 01/01/18 150,000 172,929
Chicago Public Building Community
Building Revenue, Chicago
School Reform,
Series 1999 B,
5.250% 12/01/16 250,000 288,565
SHARES VALUE ($)
- -----------------------------------------------------------------------
Lake County Community Unified School
District No. 095, Lake Zurich,
Capital Appreciation, Series 2000,
(a) 12/01/17 340,000 185,793
Madison & St. Clair Counties School,
District No. 010, Collinsville
School Building,
5.500% 02/01/12 250,000 288,708
Regional Transportation Authority,
Series A,
6.400% 06/01/12 100,000 123,014
State Educational Facilities Authority,
DePaul University, Series 2003 C,
5.000% 09/01/18 250,000 270,715
Will County Forest Preservation District,
Series 1999 B,
(a) 12/01/11 150,000 116,324
-----------
Illinois Total 1,727,465
INDIANA - 5.2%
Board Bank Revenue,
Special Program, Hendricks,
Series 2002 D,
5.375% 04/01/15 250,000 282,032
MSD Steuben County, K-5 Building Corp.,
First Meeting,
5.000% 07/15/18 250,000 277,088
West Lafayette Industrial Building Corp.,
First Mortgage, Police Station Project,
5.000% 07/15/18 250,000 270,795
-----------
Indiana Total 829,915
IOWA - 2.6%
Finance Authority:
Health Care Facilities Revenue,
Genesis Medical Center,
6.100% 07/01/15 285,000 334,516
Single Family Mortgage,
Series A,
5.800% 07/01/16 80,000 84,713
-----------
Iowa Total 419,229
KENTUCKY - 0.5%
Louisville & Jefferson County Visitors
& Convention Commission,
Series 1999 BBB,
(a) 12/01/08 100,000 79,366
Kentucky Total 79,366
LOUISIANA - 1.8%
Calcasieu Parish School District No. 31,
Public School Improvement,
Series 2000,
5.500% 05/01/16 250,000 285,813
-----------
Louisiana Total 285,813
See Accompanying Notes to Financial Statements.
89
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA NATIONAL MUNICIPAL BOND FUND
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
MAINE - 0.6%
Regional Waste System Industry,
Solid Waste Resource Recovery,
Series Q (AMT),
5.500% 07/01/04 100,000 101,457
-----------
Maine Total 101,457
MASSACHUSETTS - 2.9%
State College Building Authority,
Series 2004 A,
5.000% 05/01/14 165,000 187,546
State Consolidation Loan,
Series 2004 A,
5.250% 08/01/13 250,000 287,402
-----------
Massachusetts Total 474,948
MICHIGAN - 5.9%
Lansing School District,
School Building & Site,
5.000% 05/01/15 125,000 140,590
State Hospital Finance Authority,
Ascension Health Credit, Series A:
5.375% 11/15/33 100,000 111,689
6.000% 11/15/19 100,000 120,140
Sturgis Public School District,
School Building & Site,
5.500% 05/01/14 250,000 289,472
Warren Downtown Development,
Series 2002,
5.000% 10/01/16 250,000 278,820
-----------
Michigan Total 940,711
MISSISSIPPI - 1.8%
Development Bank,
Convention Center Project,
6.500% 07/01/13 230,000 287,914
-----------
Mississippi Total 287,914
MONTANA - 1.4%
Whitefish Tax Increment,
Urban Renewal Revenue,
6.625% 07/15/20 200,000 218,388
-----------
Montana Total 218,388
NEVADA - 1.8%
Colorado River Commission,
Hoover Dam Project, Series 2002,
5.375% 10/01/14 250,000 289,268
-----------
Nevada Total 289,268
NEW JERSEY - 0.8%
State Economic Development Authority,
Public Schools Small PJ
Loan Program,
5.000% 08/15/12 110,000 126,509
-----------
New Jersey Total 126,509
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
NEW YORK - 3.6%
New York City,
AMBAC TCRS:
Series 2000,
5.750% 08/01/11 250,000 294,047
Series A,
6.000% 05/15/21 250,000 281,712
-----------
New York Total 575,759
NORTH DAKOTA - 1.8%
Fargo School District Building
Authority Development,
Series 2000,
5.500% 05/01/13 250,000 284,680
-----------
North Dakota Total 284,680
OHIO - 2.6%
Oak Hills Local School District,
7.200% 12/01/09 100,000 125,091
State Water Development Authority
Revenue, Fresh Water, Series 2001 B,
5.500% 12/01/18 250,000 297,662
-----------
Ohio Total 422,753
OKLAHOMA - 1.4%
Okmulgee County,
1st Mortgage,
6.000% 03/01/15 200,000 231,380
-----------
Oklahoma Total 231,380
OREGON - 11.1%
Bend Municipal Airport Project,
Series B (AMT),
5.375% 06/01/13 100,000 108,233
Benton County Hospital
Facilities Authority Refunding,
Samaritan Health Services Project:
4.200% 10/01/05 40,000 41,708
4.600% 10/01/09 40,000 43,147
Clackamas County,
Hospital Facility Authority,
Gross-Willamette Falls
Hospital Project,
5.500% 04/01/22 250,000 269,427
Damascus Water District,
Certificates of Participation,
5.250% 03/01/19 100,000 112,335
Deschutes County Hospital Facilities
Authority, Cascade Health
Services, Inc.,
Series 2002,
5.600% 01/01/27 100,000 105,238
Eugene Trojan Nuclear Project,
5.900% 09/01/09 25,000 25,301
Hillsboro Hospital Facility Authority
Refunding, Tuality Healthcare,
5.250% 10/01/04 55,000 56,235
See Accompanying Notes to Financial Statements.
90
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA NATIONAL MUNICIPAL BOND FUND
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
OREGON - (CONTINUED)
Klamath Community College District:
4.700% 04/01/10 55,000 59,790
4.800% 04/01/11 25,000 27,045
Lebanon Urban Renewal Agency,
5.625% 06/01/19 100,000 106,902
Port of St. Helens Pollution
Control, Portland General
Electric Co., Series B,
4.800% 06/01/10 105,000 105,580
Redmond Urban Renewal
Agency, Downtown Area B,
5.650% 06/01/13 100,000 105,014
Salem Hospital Facilities Authority,
Capital Manor, Inc., Series 1994,
7.500% 12/01/24 150,000 156,621
State Housing & Community
Services Department,
Single Family Mortgage Program,
Series B,
6.000% 07/01/12 10,000 10,483
State Veterans Welfare,
Series 75,
5.875% 10/01/18 15,000 15,635
Sunriver Library County Service District,
5.750% 06/01/04 20,000 20,228
Washington & Clackamas Counties
School District No. 23J Tigard,
Series 2000,
(a) 06/15/21 300,000 132,051
Washington County Housing Authority:
Affordable Housing Pool, Series A,
6.000% 07/01/20 100,000 100,080
Multi-Family Tualatin Meadows,
5.900% 11/01/18
West Linn Oregon Water System,
6.000% 10/01/20 165,000 179,136
-----------
Oregon Total 1,780,189
SOUTH CAROLINA - 1.4%
Charleston County School District,
Series 2001,
5.000% 02/01/18 200,000 217,574
-----------
South Carolina Total 217,574
SOUTH DAKOTA - 1.1%
State Building Authority,
Lease Capital Appreciation,
Series 1996 A,
(a) 12/01/13 250,000 173,490
-----------
South Dakota Total 173,490
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
TENNESSEE - 4.1%
Lawrenceburg Public Building Authority,
Electric System Public Works,
Series C,
5.500% 07/01/16 295,000 336,595
Metropolitan Government Nashville,
Series 2002 A,
5.125% 10/01/13 285,000 324,552
-----------
Tennessee Total 661,147
TEXAS - 4.5%
Harris County Health Facilities,
de Teco Project, Series 1999 B,
5.700% 02/15/15 150,000 172,437
Laredo Sports Venue Sales Tax,
5.750% 03/15/13 200,000 230,594
Magnolia Independent School District,
5.250% 08/15/17 280,000 313,062
-----------
Texas Total 716,093
WASHINGTON - 13.8%
Grant County Public Hospital,
District No. 3,
Columbia Basin Hospital,
5.500% 12/01/18 170,000 178,969
Jefferson County,
Public Utility District No. 1,
Water & Sewer:
5.250% 05/01/16 50,000 53,473
5.250% 05/01/17 50,000 53,207
Pierce County Housing Authority,
5.400% 12/01/13 100,000 98,431
Port of Grays Harbor,
6.375% 12/01/14 150,000 164,758
Poulsbo Water & Sewer,
5.250% 06/01/06 135,000 145,072
Seattle Municipal Light & Power:
5.000% 07/01/13 235,000 250,750
6.000% 10/01/16 150,000 170,133
Shelton Water & Sewer,
5.250% 12/01/18 50,000 53,256
State Certificates of
Participation, Department of
General Administration,
5.400% 07/01/13 100,000 108,853
State Health Care Facilities Authority
Revenue, Grays Harbor
Community Hospital,
Series 1996,
5.700% 07/01/16 200,000 211,568
State Public Power Supply System:
Nuclear Project No. 1 Revenue,
Series 1997 B,
5.125% 07/01/14 300,000 320,391
Nuclear Project No. 2 Refunding,
Series A,
5.000% 07/01/11 50,000 55,709
See Accompanying Notes to Financial Statements.
91
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA NATIONAL MUNICIPAL BOND FUND
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
WASHINGTON - (CONTINUED)
Nuclear Project No. 3 Revenue,
Capital Appreciation, Series 1989 B,
(a) 07/01/12 145,000 105,050
Tacoma Solid Waste Utilities:
Pre-refunded, Series 1997 B,
6.000% 12/01/09 15,000 17,939
Unrefunded, Series 1997 B,
6.000% 12/01/09 85,000 100,847
Thurston County School
District No. 401, Rochester,
4.800% 12/01/07 55,000 55,370
Toppenish,
4.600% 12/01/06 65,000 69,923
Yakima County
School District No. 119 Selah,
5.000% 12/01/06 10,000 10,956
-----------
Washington Total 2,224,655
WISCONSIN - 3.4%
Marshall School District,
Series 2002 A,
5.000% 03/01/14 250,000 286,270
State,
Series 2004 2,
5.000% 05/01/12 225,000 255,715
-----------
Wisconsin Total 541,985
WYOMING - 0.7%
Municipal Power Agency,
Power Supply Refunding,
Series 1998,
5.250% 01/01/11 100,000 113,626
-----------
Wyoming Total 113,626
TOTAL MUNICIPAL BONDS
(Cost of $13,879,130) 14,892,370
SHORT-TERM OBLIGATIONS - 4.0% SHARES
- ----------------------------------------------------------------------
TAX-EXEMPT MONEY MARKET INVESTMENTS - 2.7%
Dreyfus Tax-Exempt
Cash Management 408,487 408,487
Federated Tax-Free Obligations Fund 30,484 30,484
-----------
Total Tax-Exempt Money Market Investments
(Cost of $438,971) 438,971
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
VARIABLE RATE DEMAND NOTE (B) - 1.3%
IN Health Facilities Financing Agency,
Fayette Memorial Hospital Association,
Series 2002 A,
1.030% 10/01/32
(Cost of $200,000) 200,000 200,000
-----------
SHORT-TERM OBLIGATIONS TOTAL
(Cost of $638,971) 638,971
TOTAL INVESTMENTS - 96.7%
(COST OF $14,518,101) (c) 15,531,341
OTHER ASSETS & LIABILITIES, NET - 3.3% 525,209
NET ASSETS - 100.0% 16,056,550
NOTES TO INVESTMENT PORTFOLIO:
(a) Zero coupon bond.
(b) Variable rate demand notes are considered short-term obligations. Interest
rates change periodically on specified dates. These securities are payable
on demand and are secured by either letters of credit or other credit
support agreements from banks. The rate listed is as of February 29, 2004.
(c) Cost for federal income tax purposes is $14,514,524.
Columbia National Municipal Bond Fund holds investments that are insured
by private insurers who guarantee the payment of principal and interest in
the event of default. At February 29, 2004, investments in these
securities represented 58.0% of holdings.
ACRONYM NAME
------- ----
AMBAC American Municipal
Bond Assurance Corp.
AMT Alternative Minimum Tax
TCRS Transferable Custodial Receipts
See Accompanying Notes to Financial Statements.
92
INVESTMENT PORTFOLIO____________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA OREGON MUNICIPAL BOND FUND
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
GENERAL OBLIGATION BONDS - 35.7%
STATE OF OREGON GENERAL OBLIGATIONS - 4.4%
Board of Higher Education:
Series A:
5.000% 08/01/12 2,075,000 2,375,813
5.250% 08/01/14 1,480,000 1,687,940
5.250% 08/01/16 5,330,000 5,982,872
Baccalaureate, Series D,
4.875% 08/01/19 1,000,000 1,043,960
Deferred Interest, Series A:
(a) 08/01/14 490,000 328,991
(a) 08/01/17 1,050,000 594,605
Elderly & Disabled Housing
Refunding, Series B:
4.950% 08/01/20 985,000 1,025,612
6.250% 08/01/13 55,000 55,777
State of Oregon, Series A,
5.250% 10/15/15 1,735,000 1,978,455
Veteran's Welfare:
5.850% 10/01/15 540,000 564,883
8.000% 07/01/08 580,000 721,352
9.200% 10/01/08 385,000 502,929
Series 80 A,
5.700% 10/01/32 4,130,000 4,339,515
-----------
State of Oregon General Obligations Total 21,202,704
GENERAL OBLIGATIONS - 17.8%
Aurora,
5.600% 06/01/24 1,205,000 1,269,889
Bend Municipal Airport Project,
Series B (AMT),
5.375% 06/01/13 150,000 162,349
Canyonville South Umpqua Rural
Fire District,
5.400% 07/01/31 610,000 647,838
Clackamas County:
Lake Oswego Series:
5.375% 06/01/15 2,450,000 2,772,346
5.375% 06/01/16 1,295,000 1,465,383
5.375% 06/01/17 2,535,000 2,865,716
School District No. 62C:
3.250% 06/15/12 3,655,000 3,703,831
5.375% 06/15/17 1,250,000 1,460,138
School District No. 086,
6.000% 06/15/16 2,350,000 2,769,122
School District No. 108,
5.375% 06/15/15 1,055,000 1,194,471
Clackamas & Washington Counties,
School District No. 003JT,
(a) 06/15/17 6,000,000 3,404,640
Coos Bay,
4.900% 09/01/07 1,960,000 2,153,707
Crook County School District,
5.000% 02/01/14 2,860,000 3,199,282
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
Eugene Public Safety Facilities:
5.500% 06/01/10 850,000 921,859
5.625% 06/01/13 1,295,000 1,407,147
Jackson County:
School District No. 4, Phoenix-Talent,
5.500% 06/15/16 1,000,000 1,140,240
School District No. 6, Central Point,
6.000% 06/15/09 1,090,000 1,285,579
School District No. 9, Eagle Point,
5.625% 06/15/15 1,920,000 2,202,029
Lane County, School District No. 4J
Eugene, Refunding:
5.000% 07/01/12 1,000,000 1,141,880
5.250% 07/01/13 1,000,000 1,160,020
Metro Washington Park Zoo, Series A,
5.300% 01/15/11 1,000,000 1,093,370
Metro Oregon,
5.250% 09/01/14 3,130,000 3,587,481
Multnomah-Clackamas Counties,
School District No. 10JT, Series A,
5.250% 06/15/12 1,000,000 1,159,720
Multnomah County, Series A,
5.500% 04/01/19 2,395,000 2,703,045
Portland Community College
District, Series A:
5.375% 06/01/14 1,925,000 2,212,306
5.375% 06/01/16 2,705,000 3,060,897
5.375% 06/01/17 2,540,000 2,871,368
Portland Limited Tax:
Series A:
3.400% 06/01/13 3,140,000 3,175,545
4.900% 04/01/12 1,430,000 1,531,072
5.750% 06/01/14 585,000 591,885
Series B:
(a) 06/01/12 1,750,000 1,310,347
(a) 06/01/13 1,500,000 1,065,060
(a) 06/01/16 3,500,000 2,106,545
(a) 06/01/18 4,000,000 2,144,320
(a) 06/01/19 4,000,000 2,016,160
(a) 06/01/20 4,000,000 1,897,240
Washington & Clackamas Counties:
Deferred Interest, Series A,
(a) 06/01/10 1,520,000 1,248,923
School District No. 23J, Tigard,
(a) 06/15/18 2,700,000 1,436,886
Washington County:
5.500% 06/01/16 2,785,000 3,173,730
Criminal Justice Facilities,
Refunding,
5.000% 12/01/10 1,400,000 1,548,512
School District No. 48J, Beaverton:
5.125% 01/01/14 2,000,000 2,247,320
5.125% 01/01/17 1,820,000 2,014,340
5.125% 01/01/18 2,260,000 2,487,650
See Accompanying Notes to Financial Statements.
93
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA OREGON MUNICIPAL BOND FUND
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
GENERAL OBLIGATION BONDS - (CONTINUED)
GENERAL OBLIGATIONS - (CONTINUED)
Washington, Multnomah &
Yamhill Counties,
School District No. 1J:
5.000% 06/01/13 1,500,000 1,688,970
5.000% 11/01/13 1,100,000 1,257,421
5.250% 06/01/14 500,000 565,975
-----------
General Obligations Total 86,523,554
INSURED GENERAL OBLIGATIONS - 13.5%
Benton & Linn Counties, School
District No. 509J, Corvallis,
5.000% 06/01/17 2,665,000 2,945,438
Clackamas Community College,
5.250% 06/15/15 1,500,000 1,686,240
Clackamas County, School
District No. 12,
North Clackamas:
5.250% 06/01/11 1,000,000 1,134,060
5.250% 06/01/15 2,750,000 3,061,547
Columbia County, School
District No. 502,
Deferred Interest:
(a) 06/01/13 1,685,000 1,205,146
(a) 06/01/14 1,025,000 694,622
Coos County, School District
No. 13, North Bend,
5.500% 06/15/15 1,765,000 2,036,704
Deschutes County, School District
No. 1, Series A,
5.500% 06/15/18 1,000,000 1,138,630
Jefferson County, School District
No. 509J,
Madras School District,
5.250% 06/15/18 1,075,000 1,200,270
Josephine County, School District
No. 7,
Grants Pass,
4.000% 06/15/11 2,000,000 2,156,580
5.700% 06/01/13 2,000,000 2,258,320
Lane County, School District No. 19,
Springfield Refunding:
6.000% 10/15/12 1,740,000 2,119,129
6.000% 10/15/14 1,310,000 1,619,658
Lincoln County School District,
5.600% 06/15/10 3,480,000 4,024,237
Linn Benton Community College:
(a) 06/15/13 1,000,000 710,830
(a) 06/15/14 1,000,000 673,810
Linn County, Community School
District No. 9,
Lebanon:
(a) 06/15/15 710,000 810,295
(a) 06/15/21 2,000,000 2,273,280
PAR ($) VALUE ($)
----------------------------------------------------------------------
Multnomah-Clackamas Counties,
Centennial School District
No. 28-302:
5.375% 06/15/16 2,055,000 2,326,671
5.375% 06/15/17 2,280,000 2,578,110
5.375% 06/15/18 2,490,000 2,801,972
Multnomah County:
School District No. 7, Reynolds:
5.625% 06/15/14 2,670,000 3,126,703
5.625% 06/15/17 1,000,000 1,146,890
School District No. 40,
5.000% 12/01/14 1,790,000 2,008,452
Series A MBIA-IBC,
5.500% 04/01/18 2,010,000 2,288,043
Northern Oregon Corrections:
5.250% 09/15/12 1,000,000 1,110,650
5.300% 09/15/13 1,000,000 1,112,350
Salem-Keizer, School District No. 24J:
5.000% 06/01/15 1,000,000 1,135,530
5.000% 06/15/18 2,000,000 2,206,460
Washington & Clackamas Counties,
School District No. 23J, Tigard,
5.375% 06/15/17 1,500,000 1,699,425
Washington County:
School District No. 15, Forest Grove:
5.375% 06/15/13 2,070,000 2,394,597
5.375% 06/15/15 2,515,000 2,847,483
School District No. 48J, Beaverton:
5.100% 06/01/12 500,000 562,830
5.250% 08/01/10 1,150,000 1,290,634
School District No. 088J,
Sherwood, Unrefunded,
6.100% 06/01/12 185,000 196,629
Yamhill County:
School District No. 029J,
5.250% 06/15/16 2,535,000 2,858,745
School District No. 40,
6.000% 06/01/09 500,000 590,260
-----------
Insured General Obligations Total 66,031,230
-----------
GENERAL OBLIGATION BONDS TOTAL
(Cost of $162,645,984) 173,757,488
REVENUE BONDS - 54.8%
OREGON REVENUE - 34.0%
Benton County Hospital Facilities
Authority, Samaritan Health
Services Project, Refunding:
4.400% 10/01/07 220,000 236,240
4.800% 10/01/11 245,000 260,866
5.200% 10/01/17 2,255,000 2,360,714
Clackamas County Hospital
Facility Authority:
Kaiser Permanente, Series A,
5.375% 04/01/14 7,135,000 8,180,563
See Accompanying Notes to Financial Statements.
94
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA OREGON MUNICIPAL BOND FUND
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
REVENUE BONDS - (CONTINUED)
OREGON REVENUE - (CONTINUED)
Legacy Health System:
4.600% 05/01/10 885,000 974,606
5.000% 02/15/16 1,010,000 1,075,983
5.500% 02/15/13 5,450,000 6,067,757
5.500% 02/15/14 2,385,000 2,641,483
5.750% 05/01/12 2,000,000 2,329,800
Legacy Health System, Refunding:
5.250% 05/01/21 4,890,000 5,234,989
5.750% 05/01/16 1,500,000 1,700,685
Odd Fellows Home, Series A,
Refunding,
5.875% 09/15/21 705,000 645,780
Robison Jewish Home Project,
6.250% 10/01/21 1,650,000 1,755,204
Willamette Falls Hospital Project,
5.750% 04/01/14 705,000 748,921
Willamette View, Inc. Project,
Series A,
6.850% 11/01/15 1,580,000 1,722,706
Clackamas County Housing Authority,
Multi-Family Housing, Easton
Ridge, Series A,
5.800% 12/01/16 2,255,000 2,327,431
Deschutes County Hospital
Facilities Authority,
Cascade Health Services, Inc.:
5.500% 01/01/22 2,000,000 2,122,680
5.600% 01/01/27 5,550,000 5,840,709
5.600% 01/01/32 2,000,000 2,099,420
Deschutes Valley Water District,
5.875% 09/01/05 1,585,000 1,683,936
Eugene Airport, Refunding (AMT):
5.650% 05/01/06 325,000 348,878
5.650% 05/01/07 555,000 606,892
5.700% 05/01/08 515,000 570,774
Hillsboro Hospital Facility Authority,
Tuality Healthcare,
5.750% 10/01/12 3,810,000 3,926,700
Multnomah County Educational
Facilities, University of
Portland Project:
5.700% 04/01/15 1,000,000 1,083,790
6.000% 04/01/20 1,000,000 1,099,110
6.000% 04/01/25 500,000 528,650
Myrtle Point Water,
6.000% 12/01/20 510,000 554,635
North Clackamas Parks & Recreation
District Facilities,
5.700% 04/01/13 2,920,000 3,409,918
Northern Wasco County,
People's Utility District Electric:
(a) 02/01/06 610,000 560,114
(a) 02/01/07 585,000 501,093
(a) 02/01/08 610,000 486,548
(a) 02/01/11 500,000 322,605
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
Oregon State Department of
Transportation,
Highway User Tax, Series A,
5.500% 11/15/16 2,500,000 2,884,300
Oregon State Economic Development,
Dove Lewis 24 Hour Emergency
Animal Hospital,
7.000% 12/01/19 (b) 1,380,000 1,433,144
Oregon State Health, Housing,
Educational & Cultural
Facilities Authority:
Authority/Aquarium:
4.750% 10/01/08 (c) 1,550,000 325,500
4.900% 10/01/09 (c) 670,000 140,700
Goodwill Industries Lane
County, Series A,
6.650% 11/15/22 (b) 3,855,000 3,788,154
Linfield College Project, Series A:
4.650% 10/01/09 555,000 591,946
5.500% 10/01/18 1,000,000 1,043,270
Reed College Project, Series A,
5.300% 07/01/11 500,000 547,990
St. Anthony's Village Housing,
Series A (AMT),
7.250% 06/01/28 1,380,000 1,382,498
Oregon State Housing &
Community Services:
Department of Housing,
Finance Assisted Insured
Multi-Unit B,
6.800% 07/01/13 7,820,000 7,835,093
Department Mortgage Multi-Family
Housing, Series B (AMT),
6.000% 07/01/31 6,935,000 7,272,735
Department Mortgage Single
Family Program:
Series A,
4.850% 07/01/10 215,000 233,335
Series A (AMT),
6.200% 07/01/27 1,815,000 1,918,745
Series B (AMT),
5.250% 07/01/30 380,000 390,218
Series D,
6.700% 07/01/13 1,000,000 1,001,880
Series E:
5.375% 07/01/21 3,770,000 3,988,698
5.700% 07/01/12 745,000 785,208
5.800% 07/01/14 845,000 890,816
6.000% 07/01/20 2,090,000 2,265,017
Series F (AMT),
5.650% 07/01/28 1,155,000 1,198,948
Series F MBIA-IBC (AMT),
5.650% 07/01/28 875,000 910,385
Series G (AMT),
5.700% 07/01/32 740,000 768,527
Series H (AMT),
5.500% 07/01/17 1,345,000 1,407,906
Series J,
5.150% 07/01/24 2,790,000 2,901,656
See Accompanying Notes to Financial Statements.
95
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA OREGON MUNICIPAL BOND FUND
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
REVENUE BONDS - (CONTINUED)
OREGON REVENUE - (CONTINUED)
Series L (AMT),
5.900% 07/01/31 3,605,000 3,781,933
Series M (AMT),
5.800% 07/01/12 300,000 325,059
Series Q:
4.700% 07/01/15 770,000 817,971
4.900% 07/01/17 755,000 798,624
Mountain Shadows Apts. B-1,
6.250% 12/01/05 (d) 4,000,000 3,058,080
Oregon State Housing Finance,
5.800% 07/01/09 215,000 216,935
Port Morrow,
6.700% 06/01/20 2,000,000 2,055,420
Port of St. Helens:
5.600% 08/01/14 315,000 328,677
5.750% 08/01/19 425,000 442,752
Port of St. Helens Pollution Control,
Portland General Electric Co:
Series A,
4.800% 04/01/10 5,195,000 5,223,676
Series B,
4.800% 06/01/10 3,500,000 3,519,320
Portland Housing Authority:
Multi-Family Housing Senior Lien
Civic Apartments,
Series A,
5.600% 01/01/18 1,240,000 1,250,627
Pool Housing, Series A, Refunding,
4.500% 01/01/09 660,000 712,654
Portland Sewer System Revenue,
Series A, Refunding,
5.000% 06/01/12 4,835,000 5,293,310
Powell Valley Water District,
6.000% 02/01/15 620,000 676,476
Prineville Sewer First Lien,
6.500% 07/01/04 140,000 142,243
Reedsport Water,
7.000% 10/01/14 520,000 531,024
Salem Hospital Facility Authority:
5.000% 08/15/18 2,000,000 2,069,560
5.250% 08/15/14 4,860,000 5,159,182
Sheridan Water Revenue:
6.200% 05/01/15 625,000 692,131
6.450% 05/01/20 520,000 574,522
Sheridan Water Revenue, Refunding,
5.350% 04/01/18 300,000 317,493
South Fork Water Board First Lien,
5.450% 02/01/14 1,300,000 1,324,297
State of Oregon French American
International School Project,
Series A,
6.250% 04/01/27 5,370,000 5,681,782
Umatilla County, Hospital Facility
Authority, Catholic Health
Initiatives, Series A:
5.750% 12/01/20 530,000 576,423
6.000% 12/01/30 4,825,000 5,299,298
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
Washington County Housing Authority:
Affordable Housing, Series A,
6.000% 07/01/20 2,000,000 2,001,600
Affordable Housing Pool, Series A:
5.750% 07/01/23 1,000,000 1,017,100
6.000% 07/01/23 1,000,000 996,500
Multi-Family Bethany Meadows
Project (AMT),
6.250% 08/01/10 695,000 700,199
-----------
Oregon Revenue Total 165,501,717
INSURED REVENUE - 20.8%
Clackamas County, Hospital Facilities
Authority, Legacy Health System,
MBIA-IBC,
5.500% 02/15/13 495,000 565,137
Deschutes County, Certificates of
Participation, Series A,
5.050% 06/01/17 420,000 433,465
Emerald Peoples Utilities District:
7.350% 11/01/10 2,160,000 2,767,111
7.350% 11/01/11 2,000,000 2,604,700
7.350% 11/01/12 2,490,000 3,278,508
7.350% 11/01/13 2,675,000 3,562,699
Series A,
5.250% 11/01/20 605,000 673,377
Eugene Electric Utilities System,
Series B, Refunding,
5.250% 08/01/13 1,040,000 1,189,812
Guam Housing Corp., Single
Family Mortgage-Backed Securities,
Series A (AMT),
5.750% 09/01/31 175,000 198,784
Guam International Apartment
Authority, Series C (AMT),
5.375% 10/01/17 5,000,000 5,563,800
Medford Hospital Facilities Authority,
Asante Health System, Series A:
5.250% 08/15/10 1,500,000 1,684,425
5.250% 08/15/11 800,000 898,360
Multnomah County Educational
Facilities Authority,
University of Portland
Project, Refunding:
5.000% 04/01/11 1,150,000 1,274,994
5.750% 04/01/10 2,000,000 2,264,120
Ontario Catholic Health Holy Rosary
Medical Center,
5.500% 11/15/12 1,500,000 1,628,760
Oregon State Department of
Administrative Services:
Certificates of Participation,
Series A,
5.300% 05/01/08 750,000 834,502
See Accompanying Notes to Financial Statements.
96
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA OREGON MUNICIPAL BOND FUND
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
REVENUE BONDS - (CONTINUED)
INSURED REVENUE - (CONTINUED)
Lottery Education Project:
Series A:
5.000% 04/01/14 5,535,000 6,290,008
5.250% 04/01/11 4,000,000 4,558,240
5.250% 04/01/13 1,600,000 1,837,392
Series B,
5.250% 04/01/15 1,315,000 1,472,024
Department of Administrative
Services, Certificates of
Participation, Refunding:
Series A:
4.500% 05/01/12 1,020,000 1,098,673
5.000% 05/01/13 4,240,000 4,753,040
5.000% 05/01/14 1,000,000 1,116,560
Series B,
5.250% 05/01/10 840,000 967,134
Series C:
5.250% 11/01/15 1,000,000 1,136,680
5.250% 11/01/17 5,000,000 5,625,100
Series E,
5.000% 11/01/13 1,470,000 1,661,556
Oregon State Economic
Community Development
Department, Series A,
5.375% 01/01/11 1,105,000 1,255,700
Oregon State Health, Housing,
Educational & Cultural
Facilities Authority,
Reed College Project, Series A,
5.100% 07/01/10 900,000 1,018,413
Oregon State Health Sciences
University, Series A:
(a) 07/01/09 1,530,000 1,325,133
(a) 07/01/12 1,315,000 989,288
(a) 07/01/14 2,550,000 1,724,896
(a) 07/01/15 4,325,000 2,765,837
(a) 07/01/21 12,515,000 5,648,270
Oregon State Housing & Community
Services Department, Single Family
Mortgage Project, Series J (AMT),
5.750% 07/01/29 5,940,000 6,188,589
Port of Portland International Airport:
Series 12B, Refunding,
5.250% 07/01/12 1,000,000 1,117,970
Series 12C (AMT):
5.000% 07/01/13 1,000,000 1,093,190
5.000% 07/01/14 1,750,000 1,893,885
Series D (AMT),
5.250% 07/01/12 1,750,000 1,954,890
Portland Arena Gas Tax:
(a) 06/01/16 1,100,000 566,456
(a) 07/01/17 2,320,000 1,122,486
Portland Gas Tax, Series A,
5.800% 06/01/16 1,640,000 1,788,059
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
Portland Housing Authority,
Multi-Family Housing,
Lovejoy Station Apartments
Project (AMT),
5.900% 07/01/23 1,000,000 1,065,100
Salem Water & Sewer,
5.300% 06/01/15 1,500,000 1,696,845
Tri-County Metropolitan
Transportation District:
Series 1,
5.400% 06/01/19 4,200,000 4,479,006
Series A,
5.000% 09/01/15 1,000,000 1,113,430
Tualatin Hills Park &
Recreation District,
5.750% 03/01/14 990,000 1,191,604
Washington County Unified
Sewer Agency,
5.500% 10/01/16 1,250,000 1,375,675
-----------
Insured Revenue Total 101,313,683
-----------
REVENUE BONDS TOTAL
(Cost of $251,420,078) 266,815,400
PRE-REFUNDED BONDS - 0.8%
Oregon State City Sewer,
6.500% 10/01/07 500,000 533,870
Virgin Islands Public Finance Authority,
Unrefunded Balance, Series A,
7.300% 10/01/18 1,185,000 1,596,823
Salem-Keizer, School District No. 24J,
5.000% 06/01/16 1,380,000 1,567,031
-----------
PRE-REFUNDED BONDS TOTAL
(Cost of $1,881,571) 3,697,724
OTHER BONDS - 6.2%
Hood River Urban Renewal Agency,
6.250% 12/15/11 1,250,000 1,375,850
Lebanon Special Obligation, Lease
Water, Refunding,
5.400% 10/01/13 755,000 765,140
Lebanon Urban Renewal Agency:
5.625% 06/01/19 1,000,000 1,069,020
5.750% 06/01/15 1,120,000 1,195,253
6.000% 06/01/20 1,580,000 1,691,469
Medford Urban Renewal,
5.875% 09/01/10 500,000 532,935
Multnomah County, Certificates
of Participation,
4.550% 08/01/10 1,000,000 1,087,860
Portland Airport Way Urban Renewal
& Redevelopment,
Convention Center, Series A:
5.750% 06/15/17 1,500,000 1,751,970
5.750% 06/15/18 2,050,000 2,391,263
See Accompanying Notes to Financial Statements.
97
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA OREGON MUNICIPAL BOND FUND
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
OTHER BONDS - (CONTINUED)
Portland River District Urban
Renewal & Redevelopment,
Series A:
5.000% 06/15/17 1,500,000 1,655,910
5.000% 06/15/18 3,070,000 3,366,255
5.000% 06/15/20 2,000,000 2,153,940
Portland Urban Renewal & Redevelopment,
South Park Blocks, Series A:
5.750% 06/15/17 2,065,000 2,411,879
5.750% 06/15/19 2,580,000 2,999,224
Redmond Urban Renewal Agency:
Downtown Area B:
5.650% 06/01/13 720,000 756,101
5.850% 06/01/19 785,000 820,419
South Airport Industrial Area A,
5.700% 06/01/19 650,000 666,068
Seaside Urban Renewal Agency, Greater
Seaside Urban Renewal,
5.250% 06/01/15 1,000,000 1,062,610
Veneta Urban Renewal Agency:
5.375% 02/15/16 700,000 760,550
5.625% 06/15/21 1,100,000 1,177,176
Wilsonville Limited Tax Improvement,
5.000% 12/01/10 345,000 347,412
-----------
OTHER BONDS TOTAL
(Cost of $27,852,638) 30,038,304
U.S. TERRITORIES BONDS - 0.2%
Puerto Rico Housing Finance Corp., Multi-Family
Mortgage Portfolio A-1,
7.500% 04/01/22 820,000 846,650
-----------
U.S. TERRITORIES BONDS TOTAL
(Cost of $817,939) 846,650
TAX EXEMPT MONEY
MARKET INVESTMENTS - 1.9% SHARES
- ----------------------------------------------------------------------
Dreyfus Tax Exempt Cash
Management,
0.820% 01/01/31 7,000,845 7,000,845
Federated Tax-Free Obligations Fund,
0.790% 01/01/31 2,294,310 2,294,310
-----------
TAX EXEMPT MONEY MARKET
INVESTMENTS TOTAL
(Cost of $9,295,155) 9,295,155
TOTAL INVESTMENTS - 99.6%
(COST OF $453,913,365) (e) 484,450,721
OTHER ASSETS & LIABILITIES, NET - 0.4% 1,914,519
NET ASSETS - 100.0% 486,365,240
NOTES TO INVESTMENT PORTFOLIO:
(a) Zero coupon bond.
(b) Denotes a restricted security, which is subject to restrictions on resale
under federal securities laws. At February 29, 2004, these securities
amounted to $5,221,298, which represents 1.1% of net assets. Additional
information on these securities is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST
-------- ---------- -----------
Oregon State Economic
Development, Dove Lewis
24 Hour Emergency
Animal Hospital,
7.000% 12/01/19 12/11/03 $ 1,380,000
Oregon State Health, Housing,
Educational & Cultural
Facilities Authority,
Goodwill Industries Lane
County, Series A,
6.650% 11/15/22 06/18/02 3,855,000
-----------
$ 5,235,000
(c) This issuer is in default of certain debt covenants. Income is not being
accrued.
(d) This issuer is in default of certain debt covenants. Income is being
accrued.
(e) Cost for federal income tax purposes is $453,767,647.
Columbia Oregon Municipal Bond Fund holds investments that are insured by
private insurers who guarantee the payment of principal and interest in
the event of default. At February 29, 2004, investments in these
securities represented 38.5% of holdings.
ACRONYM NAME
------- ----
AMT Alternative Minimum Tax
IBC Insured Bond Certificates
MBIA Municipal Bond Insurance Association
See Accompanying Notes to Financial Statements.
98
INVESTMENT PORTFOLIO____________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA HIGH YIELD FUND
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
CORPORATE NOTES & BONDS - 90.2%
AEROSPACE & DEFENSE - 3.5%
K&F Industries,
9.625% 12/15/10 14,520,000 16,207,950
L-3 Communications Corp.,
7.625% 06/15/12 30,275,000 33,605,250
TransDigm, Inc.,
8.375% 07/15/11 15,275,000 16,115,125
-----------
Aerospace & Defense Total 65,928,325
AMUSEMENT & RECREATION - 2.8%
Cinemark USA, Inc.,
9.000% 02/01/13 21,740,000 24,457,500
Royal Caribbean Cruises Ltd.,
6.875% 12/01/13 6,150,000 6,365,250
Six Flags, Inc.:
9.500% 02/01/09 1,625,000 1,702,188
9.625% 06/01/14 (a) 6,375,000 6,709,688
Speedway Motorsports, Inc.,
6.750% 06/01/13 12,910,000 13,458,675
-----------
Amusement & Recreation Total 52,693,301
AUTOMOTIVE & AUTO PARTS - 2.5%
American Axle & Manufacturing, Inc.,
9.750% 03/01/09 18,175,000 19,083,750
Lear Corp.,
Series B:
7.960% 05/15/05 5,350,000 5,697,750
8.110% 05/15/09 18,400,000 21,574,000
-----------
Automotive & Auto Parts Total 46,355,500
BROADCASTING - 1.9%
LIN Television Corp.,
6.500% 05/15/13 14,150,000 14,433,000
Sinclair Broadcasting Group, Inc.:
8.000% 03/15/12 12,710,000 13,726,800
8.750% 12/15/11 6,710,000 7,347,450
-----------
Broadcasting Total 35,507,250
CABLE TV - 5.5%
British Sky Broadcasting:
6.875% 02/23/09 5,000,000 5,662,700
7.300% 10/15/06 7,425,000 8,252,442
DirecTV Holdings LLC,
8.375% 03/15/13 23,655,000 26,907,562
EchoStar DBS Corp.,
5.750% 10/01/08 (a) 32,500,000 33,150,000
Rogers Cable, Inc.:
6.250% 06/15/13 10,475,000 10,912,017
7.875% 05/01/12 15,900,000 18,169,725
-----------
Cable TV Total 103,054,446
CAPITAL GOODS - 1.7%
Kennametal, Inc.,
7.200% 06/15/12 15,070,000 16,612,716
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
Wabtec,
6.875% 07/31/13 14,875,000 15,693,125
-----------
Capital Goods Total 32,305,841
CASINOS & GAMING - 7.4%
Harrah's Operating Co., Inc.,
7.875% 12/15/05 25,400,000 27,559,000
International Game Technology:
7.875% 05/15/04
8.375% 05/15/09 3,575,000 4,263,188
Kerzner International,
8.875% 08/15/11 1,925,000 2,122,313
MGM Mirage, Inc.:
6.000% 10/01/09 13,375,000 13,910,000
9.750% 06/01/07 20,050,000 23,057,500
Park Place Entertainment Corp.:
7.875% 03/15/10 150,000 165,750
8.875% 09/15/08 500,000 566,250
9.375% 02/15/07 30,150,000 33,768,000
Station Casinos, Inc.:
6.500% 02/01/14 (a) 20,580,000 20,837,250
6.875% 03/01/16 (a) 13,415,000 13,549,150
-----------
Casino & Gaming Total 139,798,401
CHEMICALS - 4.8%
Acetex Corp.,
10.875% 08/01/09 8,965,000 9,861,500
Airgas, Inc.,
9.125% 10/01/11 16,358,000 18,402,750
Equistar Chemicals LP:
10.125% 09/01/08 7,370,000 7,996,450
10.625% 05/01/11 4,805,000 5,237,450
Ethyl Corp.,
8.875% 05/01/10 16,400,000 17,712,000
MacDermid, Inc.,
9.125% 07/15/11 9,520,000 10,686,200
Nalco Co.,
7.750% 11/15/11 (a) 10,170,000 10,627,650
Suburban Propane Partners,
6.875% 12/15/13 (a) 9,675,000 9,928,969
-----------
Chemicals Total 90,452,969
CONSUMER PRODUCTS - 2.2%
Hasbro, Inc.:
6.150% 07/15/08 17,420,000 18,552,300
8.500% 03/15/06
Scotts Co.,
6.625% 11/15/13 (a) 21,530,000 22,283,550
-----------
Consumer Products Total 40,835,850
DIVERSIFIED MEDIA - 1.8%
Lamar Media Corp.:
7.250% 01/01/13 30,708,000 33,164,640
-----------
Diversified Media Total 33,164,640
See Accompanying Notes to Financial Statements.
99
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA HIGH YIELD FUND
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
CORPORATE NOTES & BONDS - (CONTINUED)
ENERGY - 10.3%
Chesapeake Energy Corp.:
7.500% 09/15/13 15,270,000 16,491,600
8.125% 04/01/11 3,050,000 3,362,625
8.375% 11/01/08 6,230,000 6,775,125
9.000% 08/15/12 8,750,000 10,095,312
Series 1999 B,
8.500% 03/15/12
Grant Prideco, Inc.:
9.000% 12/15/09 14,995,000 16,794,400
9.625% 12/01/07 12,520,000 14,147,600
Key Energy Services, Inc.:
6.375% 05/01/13 11,590,000 12,053,600
8.375% 03/01/08 2,560,000 2,764,800
Offshore Logistics, Inc.,
6.125% 06/15/13 20,800,000 20,384,000
Pogo Producing Co.,
8.250% 04/15/11 3,080,000 3,465,000
Pride International, Inc.:
9.375% 05/01/07 8,675,000 8,891,875
10.000% 06/01/09 6,950,000 7,398,275
Universal Compression, Inc.,
7.250% 05/15/10 9,975,000 10,573,500
Vintage Petroleum, Inc.:
7.875% 05/15/11 2,525,000 2,676,500
8.250% 05/01/12 6,025,000 6,597,375
9.750% 06/30/09
Westport Resources Corp.:
8.250% 11/01/11 22,355,000 24,702,275
8.250% 11/01/11 (a) 1,175,000 1,298,375
XTO Energy, Inc.:
6.250% 04/15/13 1,600,000 1,734,000
7.500% 04/15/12 19,765,000 23,075,637
-----------
Energy Total 193,281,874
ENVIRONMENTAL - 2.3%
Allied Waste North America, Inc.,
Series B:
9.250% 09/01/12 2,300,000 2,593,250
10.000% 08/01/09 29,645,000 31,794,263
Synagro Technologies, Inc.,
9.500% 04/01/09 8,375,000 9,086,875
-----------
Environmental Total 43,474,388
FOOD, BEVERAGES & TOBACCO - 3.2%
Constellation Brands, Inc.:
8.000% 02/15/08
8.125% 01/15/12 10,940,000 11,869,900
8.500% 03/01/09 10,775,000 11,232,937
8.625% 08/01/06 5,100,000 5,597,250
Cott Beverages, Inc.,
8.000% 12/15/11 29,200,000 31,828,000
-----------
Food, Beverages & Tobacco Total 60,528,087
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
FOOD & DRUG RETAIL - 0.6%
Couche-Tard,
7.500% 12/15/13 (a) 11,075,000 11,850,250
-----------
Food & Drug Retail Total 11,850,250
HEALTH CARE - 9.4%
AdvancePCS,
8.500% 04/01/08 8,775,000 9,608,625
AmerisourceBergen Corp.:
7.250% 11/15/12 6,630,000 7,118,962
8.125% 09/01/08 17,375,000 19,329,687
Apogent Technologies, Inc.,
6.500% 05/15/13 22,990,000 24,082,025
HCA, Inc.:
6.910% 06/15/05 7,025,000 7,384,540
7.000% 07/01/07 1,000,000 1,098,820
8.750% 09/01/10 7,000,000 8,445,500
Omnicare, Inc.:
6.125% 06/01/13 15,575,000 15,964,375
Series B,
8.125% 03/15/11 14,740,000 16,250,850
Province Healthcare Co.,
7.500% 06/01/13 12,800,000 13,152,000
Select Medical Corp.:
7.500% 08/01/13 11,050,000 11,961,625
9.500% 06/15/09 12,625,000 13,919,063
Triad Hospitals, Inc.:
7.000% 11/15/13 (a) 750,000 776,250
Series B,
8.750% 05/01/09 24,500,000 26,827,500
-----------
Health Care Total 175,919,822
HOMEBUILDERS - 2.8%
KB Home:
7.750% 02/01/10 5,050,000 5,403,500
8.625% 12/15/08 6,325,000 7,099,812
9.500% 02/15/11 12,250,000 13,781,250
Toll Brothers, Inc.,
8.250% 02/01/11 3,200,000 3,536,000
Toll Corp.:
7.750% 09/15/07
8.000% 05/01/09 5,765,000 6,010,013
8.125% 02/01/09 3,750,000 3,881,250
8.250% 12/01/11 11,020,000 12,232,200
-----------
Homebuilders Total 51,944,025
HOTELS - 2.3%
Extended Stay America, Inc.:
9.150% 03/15/08 10,890,000 11,271,150
9.875% 06/15/11 12,550,000 14,024,625
ITT Corp.,
6.750% 11/15/05 6,055,000 6,342,613
Starwood Hotels & Resorts
Worldwide, Inc.:
7.375% 05/01/07 5,300,000 5,710,750
7.875% 05/01/12 5,000,000 5,562,500
-----------
Hotels Total 42,911,638
See Accompanying Notes to Financial Statements.
100
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA HIGH YIELD FUND
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
CORPORATE NOTES & BONDS - (CONTINUED)
METALS & MINING - 2.3%
Arch Western Finance LLC,
6.750% 07/01/13 (a) 21,490,000 22,564,500
Peabody Energy Corp.,
6.875% 03/15/13 17,655,000 18,802,575
Russel Metals, Inc.,
6.375% 03/01/14 (a) 1,850,000 1,856,734
-----------
Metals & Mining Total 43,223,809
NON-FOOD & DRUG RETAIL - 1.0%
Autonation, Inc.,
9.000% 08/01/08 12,525,000 14,435,062
Group 1 Automotive, Inc.,
8.250% 08/15/13 4,635,000 5,075,325
-----------
Non-Food & Drug Retail Total 19,510,387
PACKAGING - 4.5%
Ball Corp.:
6.875% 12/15/12 32,897,000 35,035,305
7.750% 08/01/06 2,850,000 3,078,000
Owens-Brockway Glass Container:
8.750% 11/15/12 1,750,000 1,920,625
8.875% 02/15/09 1,000,000 1,090,000
8.875% 11/15/12
Owens-Illinois, Inc.:
7.150% 05/15/05 8,225,000 8,451,188
7.350% 05/15/08 5,400,000 5,386,500
8.100% 05/15/07 6,400,000 6,624,000
Silgan Holdings, Inc.,
6.750% 11/15/13 (a) 22,380,000 22,827,600
-----------
Packaging Total 84,413,218
PAPER PRODUCTS - 1.8%
Cascades, Inc.,
7.250% 02/15/13 7,605,000 7,947,225
Smurfit-Stone Container Corp.:
8.250% 10/01/12 4,580,000 4,946,400
8.375% 07/01/12 5,185,000 5,586,838
9.750% 02/01/11 13,875,000 15,470,625
-----------
Paper Products Total 33,951,088
PRINTING & PUBLISHING - 4.3%
Dex Media East LLC,
12.125% 11/15/12 20,390,000 24,060,200
Houghton Mifflin Co.,
9.875% 02/01/13 17,790,000 19,391,100
R.H. Donnelly Finance Corp.:
8.875% 12/15/10 (a) 1,320,000 1,485,000
10.875% 12/15/12 8,150,000 9,657,750
10.875% 12/15/12 (a) 21,445,000 25,412,325
-----------
Printing & Publishing Total 80,006,375
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUST (REIT) - 1.7%
Health Care REIT, Inc.:
7.500% 08/15/07 13,000,000 14,577,290
8.000% 09/12/12 125,000 149,001
iStar Financial, Inc.:
6.000% 12/15/10 2,400,000 2,484,000
7.000% 03/15/08 11,250,000 12,093,750
8.750% 08/15/08 2,890,000 3,272,925
-----------
Real Estate Investment Trust (REIT) Total 32,576,966
RESTAURANTS - 1.9%
Yum! Brands, Inc.:
7.450% 05/15/05 1,810,000 1,918,600
7.650% 05/15/08 4,050,000 4,576,500
7.700% 07/01/12 5,315,000 6,165,400
8.500% 04/15/06 3,965,000 4,401,150
8.875% 04/15/11 15,585,000 19,130,587
-----------
Restaurants Total 36,192,237
SERVICES - 4.9%
Corrections Corp. of America:
7.500% 05/01/11 12,800,000 13,440,000
7.500% 05/01/11 (a) 16,600,000 17,430,000
9.875% 05/01/09 125,000 139,375
Iron Mountain, Inc.:
7.750% 01/15/15 6,875,000 7,235,937
8.250% 07/01/11 1,120,000 1,164,800
8.625% 04/01/13 24,550,000 26,759,500
United Rentals, Inc.:
7.000% 02/15/14 (a) 12,000,000 11,340,000
7.750% 11/15/13 (a) 15,120,000 15,044,400
-----------
Services Total 92,554,012
SHIPPING - 0.9%
Teekay Shipping Corp.,
8.875% 07/15/11 14,306,000 16,308,840
-----------
Shipping Total 16,308,840
TELECOMMUNICATIONS - 1.9%
Nextel Communications, Inc.:
7.375% 08/01/15 13,825,000 14,896,437
9.375% 11/15/09 12,525,000 13,527,000
9.500% 02/01/11 6,250,000 7,015,625
-----------
Telecommunications Total 35,439,062
TOTAL CORPORATE NOTES & BONDS
(Cost of $1,626,399,876) 1,694,182,601
See Accompanying Notes to Financial Statements.
101
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA HIGH YIELD FUND
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
SHORT-TERM OBLIGATION - 7.5%
Repurchase agreement with
State Street Bank & Trust Co.,
dated 02/27/04, due 03/01/04
at 0.930%, collateralized by
U.S. Treasury Notes with
various maturities to 07/15/06,
market value $143,697,199
(repurchase proceeds $140,877,917)
(Cost of $140,867,000) 140,867,000 140,867,000
-----------
TOTAL INVESTMENTS - 97.7%
(COST OF $1,767,266,876) (b) 1,835,049,601
OTHER ASSETS & LIABILITIES, NET - 2.3% 42,932,335
NET ASSETS - 100.0% 1,877,981,936
NOTES TO INVESTMENT PORTFOLIO:
(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 February 29, 2004, the value
of these securities amounted to $248,971,691, which represents 13.3% of net
assets.
(b) Cost for federal income tax purposes is $1,774,275,430.
See Accompanying Notes to Financial Statements.
102
INVESTMENT PORTFOLIO____________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA DAILY INCOME COMPANY
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES - 14.6%
Federal Farm Credit Bank (FFCB):
1.030% 03/03/04 5,000,000 4,999,714
2.800% 04/10/04 5,000,000 5,009,788
Federal Home Loan Bank (FHLB):
0.990% 04/12/04 8,300,000 8,290,414
1.000% 04/05/04 9,300,000 9,290,958
4.875% 04/16/04 12,500,000 12,560,596
Federal Home Loan Mortgage
Corp. (FHLMC),
1.050% 08/24/04 11,124,000 11,066,897
Federal National Mortgage
Association (FNMA):
1.015% 03/31/04 9,500,000 9,491,965
1.023% 03/11/04 (a) 15,000,000 14,999,772
Student Loan Marketing
Association (SLMA):
0.989% 05/20/04 (a) 10,000,000 10,000,000
0.991% 08/19/04 (a) 10,000,000 10,000,000
4.750% 04/23/04 10,000,000 10,054,891
5.000% 06/30/04 3,900,000 3,951,430
-----------
TOTAL U.S. GOVERNMENT AGENCIES
(Cost of $109,716,425) 109,716,425
COMMERCIAL PAPER - 83.8%
Abbey National North America LLC,
1.030% 05/25/04 15,000,000 14,963,521
Abbott Laboratories,
1.040% 03/08/04 (b)(c) 9,700,000 9,698,038
American Express Credit Corp.,
1.010% 05/27/04 12,200,000 12,170,222
American General Finance Corp.:
1.010% 03/17/04 10,000,000 9,995,511
1.030% 04/05/04 10,000,000 9,989,986
American Honda Finance:
1.000% 04/05/04 10,000,000 9,990,278
1.020% 03/11/04 6,300,000 6,298,215
Anheuser-Busch Companies, Inc.,
1.050% 07/19/04 15,000,000 14,938,750
Archer-Daniels-Midland Co.:
1.030% 06/22/04 (b)(c) 8,400,000 8,372,842
1.070% 04/13/04 (b)(c) 6,565,000 6,556,610
Barclays U.S. Funding Corp.,
1.000% 03/04/04 15,200,000 15,198,733
BellSouth Corp.,
1.000% 03/01/04 15,000,000 15,000,000
BP America, Inc.,
1.050% 03/09/04 19,000,000 18,995,567
ChevronTexaco Funding Corp.,
0.990% 04/06/04 10,000,000 9,990,100
Citicorp:
1.020% 03/04/04 11,000,000 10,999,065
1.030% 03/10/04 11,000,000 10,997,168
Coca-Cola Co.:
1.000% 03/25/04 10,200,000 10,193,200
1.010% 03/22/04 5,500,000 5,496,760
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
Deutsche Bank Financial LLC,
1.030% 04/14/04 16,500,000 16,479,228
Diageo Capital PLC,
1.020% 04/26/04 (b)(c) 8,500,000 8,486,513
Du Pont EI de Nemours & Co.,
1.010% 03/30/04 17,220,000 17,212,807
General Electric Capital Corp.:
1.030% 04/07/04 10,000,000 9,989,414
1.030% 04/09/04 8,000,000 7,991,073
GlaxoSmithKline PLC:
1.000% 03/15/04 (b)(c) 10,000,000 9,996,111
1.000% 04/19/04 (b)(c) 3,300,000 3,295,508
1.010% 04/14/04 (b)(c) 5,790,000 5,782,853
Goldman Sachs Group, Inc.:
1.100% 05/24/04 6,700,000 6,682,803
1.170% 05/24/04 10,000,000 9,972,700
Household Finance Corp.,
1.030% 03/05/04 8,000,000 7,999,084
J.P. Morgan Chase & Co.,
1.020% 04/13/04 12,000,000 11,985,380
Lubrizol Corp.,
1.030% 04/29/04 (b)(c) 11,500,000 11,480,587
Merrill Lynch & Co., Inc.,
1.010% 03/23/04 9,800,000 9,793,951
MetLife Funding, Inc.:
1.020% 04/13/04 8,500,000 8,489,644
1.030% 04/21/04 3,371,000 3,366,081
Minnesota Mining &
Manufacturing Co.,
1.000% 04/15/04 9,750,000 9,737,813
Morgan Stanley Dean Witter & Co.:
1.020% 03/18/04 8,000,000 7,996,147
1.030% 03/19/04 7,500,000 7,496,138
Nestle Capital Corp.:
0.990% 03/25/04 (b)(c) 11,000,000 10,992,740
1.000% 04/20/04 (b)(c) 8,500,000 8,488,194
PACCAR Financial Corp.,
1.000% 04/08/04 16,200,000 16,182,900
Pfizer, Inc.:
0.990% 03/12/04 (b)(c) 14,000,000 13,995,765
1.000% 03/12/04 (b)(c) 6,000,000 5,998,167
Private Export Funding Corp.:
1.020% 05/17/04 10,500,000 10,477,093
1.040% 03/24/04 9,400,000 9,393,754
Prudential Funding Corp.,
1.000% 03/16/04 (b)(c) 10,900,000 10,895,458
Royal Bank of Scotland PLC,
1.030% 03/01/04 17,000,000 17,000,000
San Paolo U.S. Finance Co.,
1.070% 03/08/04 19,000,000 18,996,047
Shell Finance:
1.000% 03/16/04 12,000,000 11,995,000
1.020% 03/05/04 5,000,000 4,999,433
Siemens Capital Corp.:
1.020% 03/15/04 6,000,000 5,997,620
1.030% 03/15/04 9,500,000 9,496,195
Societe Generale of North America, Inc.,
1.000% 04/01/04 16,000,000 15,986,222
See Accompanying Notes to Financial Statements.
103
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA DAILY INCOME COMPANY
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
COMMERCIAL PAPER - (CONTINUED)
Toyota Motor Credit Co.:
1.020% 03/18/04 9,500,000 9,495,424
1.030% 03/10/04 10,000,000 9,997,425
UBS Finance, Inc.,
1.030% 03/01/04 15,000,000 15,000,000
Verizon Network Funding Corp.,
1.000% 04/14/04 7,000,000 6,991,445
Wal-Mart Stores, Inc.,
0.990% 03/02/04 (b)(c) 16,000,000 15,999,560
Washington Post Co.,
1.000% 03/02/04 14,001,000 14,000,611
Wells Fargo & Co.,
0.990% 03/19/04 12,000,000 11,994,060
-----------
TOTAL COMMERCIAL PAPER
(Cost of $628,451,514) 628,451,514
CORPORATE BONDS - 3.1%
Abbott Laboratories,
5.125% 07/01/04 4,000,000 4,052,886
Bank One N.A. Illinois,
1.310% 04/30/04 (a) 15,000,000 15,006,842
Wells Fargo & Co.,
6.625% 07/15/04 4,100,000 4,184,524
-----------
TOTAL CORPORATE BONDS
(Cost of $23,244,252) 23,244,252
TOTAL INVESTMENTS - 101.5%
(COST OF $761,412,191) (d) 761,412,191
OTHER ASSETS & LIABILITIES, NET - (1.5)% (11,710,068)
NET ASSETS - 100.0% 749,702,123
NOTES TO INVESTMENT PORTFOLIO:
(a) Floating rate note whose interest rate is reset periodically based on an
index. The interest rate shown reflects the rate in effect at February 29,
2004.
(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 February 29,
2004, the aggregate amortized cost of the Fund's private placement
securities were $130,038,946, which represents 17.3% 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 February 29, 2004, the value
of these securities amounted to $130,038,946, which represents 17.3% of net
assets.
(d) Cost for both financial statement and federal income tax purposes is the
same.
See Accompanying Notes to Financial Statements.
104
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105
STATEMENTS OF ASSETS AND LIABILITIES____________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
COMMON INTERNATIONAL MID CAP SMALL CAP
STOCK GROWTH STOCK GROWTH GROWTH
FUND ($) FUND ($) FUND ($) FUND ($) FUND ($)
- ---------------------------------------------------------------------------------------------------------------------------------
ASSETS:
Unaffiliated investments, at identified cost
(including short-term obligations) 328,262,607 756,168,388 456,092,332 861,236,963 634,887,435
Affiliated investments, at identified cost 580,333 -- -- -- --
------------ ------------- ------------- ------------- ------------
Unaffiliated investments, at value 407,751,932 959,111,710 516,926,054 1,056,560,118 778,976,917
Affiliated investments, at value 1,229,210 -- -- -- --
Repurchase agreement -- -- 27,070,000 20,813,000 15,956,000
------------ ------------- ------------- ------------- ------------
Total investments, at value 408,981,142 959,111,710 543,996,054 1,077,373,118 794,932,917
Cash 54,039 -- 364 279 812
Foreign currency (cost of $57,836) -- -- 58,016 -- --
Receivable for:
Investments sold 10,836,533 17,187,982 -- 20,331,586 6,662,176
Capital stock sold 729,102 288,912 1,075,779 414,270 1,724,104
Interest -- -- 2,098 1,613 1,237
Dividends 531,757 990,180 714,591 313,283 56,214
Foreign tax reclaim -- -- 306,230 -- --
Expense reimbursement or waiver due
from Investment Advisor or Distributor -- 12,384 -- -- --
Deferred compensation plan -- 6,112 908 6,677 --
Other assets 46 -- 81,710 79,853 --
------------ ------------- ------------- ------------- ------------
Total assets 421,132,619 977,597,280 546,235,750 1,098,520,679 803,377,460
- ---------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable to custodian bank -- 2,949,016 -- -- --
Payable for:
Investments purchased 4,462,277 8,175,950 -- 26,714,170 11,983,732
Capital stock redeemed 721,294 5,724,313 1,958,548 712,806 6,496,004
Futures variation margin -- -- -- -- --
Distributions -- -- -- -- --
Investment advisory fee 198,673 453,296 322,642 723,318 622,874
Transfer agent fee 38,730 10,927 19,947 -- 139,727
Pricing and bookkeeping fees 21,144 23,287 9,917 10,150 21,278
Directors' fees 794 -- 556 826 725
Audit fee 11,484 9,090 6,333 1,903 14,369
Service and distribution fees 1,878 6,869 13,471 14,752 --
Custody fee 4,365 7,374 -- -- 3,964
Legal fee 8,860 1,161 5,486 6,008 1,480
Registration fees 2,680 9,833 -- -- 14,768
Reports to shareholders 71,644 15,816 -- -- 24,357
Deferred compensation plan -- 6,112 908 6,677 --
Foreign capital gains tax payable -- -- 1,026,627 -- --
Other liabilities 6,028 11,891 -- -- 9,375
------------ ------------- ------------- ------------- ------------
Total liabilities 5,549,851 17,404,935 3,364,435 28,190,610 19,332,653
NET ASSETS 415,582,768 960,192,345 542,871,315 1,070,330,069 784,044,807
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Paid-in capital 437,673,413 1,160,444,413 502,860,758 1,052,266,954 748,577,913
Undistributed (overdistributed) net
investment income 186,654 30,215 -- -- --
Accumulated net investment loss -- -- (168,743) (3,894,057) (3,652,319)
Accumulated net realized gain (loss) (102,415,501) (403,225,605) (46,830,429) (194,178,983) (120,926,269)
Unrealized appreciation (depreciation) on:
Investments 80,138,202 202,943,322 87,903,722 216,136,155 160,045,482
Foreign currency translations -- -- 132,634 -- --
Foreign capital gains tax -- -- (1,026,627) -- --
Futures contracts -- -- -- -- --
------------ ------------- ------------- ------------- ------------
NET ASSETS 415,582,768 960,192,345 542,871,315 1,070,330,069 784,044,807
REAL ESTATE STRATEGIC SHORT TERM
EQUITY TECHNOLOGY INVESTOR BALANCED BOND
FUND ($) FUND ($) FUND ($) FUND ($) FUND ($)
- ------------------------------------------------------------------------------------------------------------------------------
ASSETS:
Unaffiliated investments, at identified cost
(including short-term obligations) 753,709,227 35,057,727 279,369,420 542,261,300 525,622,523
Affiliated investments, at identified cost -- -- -- 2,948,028 9,097,416
------------- ---------- ----------- ------------ -----------
Unaffiliated investments, at value 1,053,546,570 39,726,280 278,528,298 613,545,266 509,957,207
Affiliated investments, at value -- -- -- 3,914,292 9,154,488
Repurchase agreement 37,010,000 265,000 67,191,000 10,051,000 20,892,000
------------- ---------- ----------- ------------ -----------
Total investments, at value 1,090,556,570 39,991,280 345,719,298 627,510,558 540,003,695
Cash 851 49 -- 276,942 708
Foreign currency (cost of $57,836) -- -- -- -- --
Receivable for:
Investments sold -- 2,365,090 4,383,391 4,895,494 1,487,993
Capital stock sold 2,276,612 165,094 1,843,250 678,676 2,430,912
Interest 2,868 21 5,207 1,745,920 3,623,092
Dividends 696,646 735 390,350 531,372 --
Foreign tax reclaim -- -- -- -- --
Expense reimbursement or waiver due
from Investment Advisor or Distributor -- 50,851 -- -- 94,267
Deferred compensation plan -- -- 9,898 -- 5,416
Other assets 2,179 10,966 42,847 -- --
------------- ---------- ----------- ------------ -----------
Total assets 1,093,535,726 42,584,086 352,394,241 635,638,962 547,646,083
- ------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable to custodian bank -- -- 5,092 -- --
Payable for:
Investments purchased 2,156,664 2,043,209 4,942,666 4,699,585 2,310,482
Capital stock redeemed 2,599,863 165,033 632,773 8,468,186 938,576
Futures variation margin -- -- -- -- 42,109
Distributions -- -- -- -- 529,700
Investment advisory fee 635,225 32,476 202,639 253,477 199,589
Transfer agent fee 98,234 -- 59,332 14,512 22,986
Pricing and bookkeeping fees 22,961 -- 9,789 24,934 21,782
Directors' fees 126 -- 705 900 914
Audit fee 7,343 6,129 2,880 9,874 8,787
Service and distribution fees 20,907 3,381 23,495 6,316 45,486
Custody fee 2,761 -- 1,301 6,622 2,883
Legal fee -- 6,993 2,447 10,024 --
Registration fees 7,408 6,101 -- 5,333 27,811
Reports to shareholders -- 4,595 -- 49,274 97
Deferred compensation plan -- -- 9,898 -- 5,416
Foreign capital gains tax payable -- -- -- -- --
Other liabilities 8,526 -- -- 4,771 5,194
------------- ---------- ----------- ------------ -----------
Total liabilities 5,560,018 2,267,917 5,893,017 13,553,808 4,161,812
NET ASSETS 1,087,975,708 40,316,169 346,501,224 622,085,154 543,484,271
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Paid-in capital 752,525,837 36,587,951 285,720,151 639,460,732 539,677,479
Undistributed (overdistributed) net
investment income 7,907,165 -- 74,642 1,300,714 81,538
Accumulated net investment loss -- (262,555) -- -- --
Accumulated net realized gain (loss) (9,304,637) (942,780) (5,643,384) (100,977,522) (1,489,595)
Unrealized appreciation (depreciation) on:
Investments 336,847,343 4,933,553 66,349,878 82,301,230 5,283,756
Foreign currency translations -- -- (63) -- --
Foreign capital gains tax -- -- -- -- --
Futures contracts -- -- -- -- (68,907)
------------- ---------- ----------- ------------ -----------
NET ASSETS 1,087,975,708 40,316,169 346,501,224 622,085,154 543,484,271
FIXED NATIONAL OREGON
INCOME MUNICIPAL MUNICIPAL DAILY
SECURITIES BOND BOND HIGH YIELD INCOME
FUND ($) FUND ($) FUND ($) FUND ($) COMPANY ($)
- -------------------------------------------------------------------------------------------------------------------------------
ASSETS:
Unaffiliated investments, at identified cost
(including short-term obligations) 388,603,095 14,518,101 453,913,365 1,767,266,876 761,412,191
Affiliated investments, at identified cost -- -- -- -- --
------------ ---------- ----------- ------------- -----------
Unaffiliated investments, at value 391,903,741 15,531,341 484,450,721 1,694,182,601 761,412,191
Affiliated investments, at value -- -- -- -- --
Repurchase agreement 10,155,000 -- -- 140,867,000 --
------------ ---------- ----------- ------------- -----------
Total investments, at value 402,058,741 15,531,341 484,450,721 1,835,049,601 761,412,191
Cash 588,810 -- -- 16,568,734 113,907
Foreign currency (cost of $57,836) -- -- -- -- --
Receivable for:
Investments sold 827,884 -- 108,140 314,479 --
Capital stock sold 722,344 349,548 452,941 5,006,331 1,932,301
Interest 3,522,624 177,172 5,531,541 32,850,402 616,274
Dividends -- -- -- -- --
Foreign tax reclaim -- -- -- -- --
Expense reimbursement or waiver due
from Investment Advisor or Distributor -- 52,524 -- -- --
Deferred compensation plan -- -- -- -- --
Other assets 175,703 1,819 -- 9,847 574,349
------------ ---------- ----------- ------------- -----------
Total assets 407,896,106 16,112,404 490,543,343 1,889,799,394 764,649,022
------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable to custodian bank -- -- -- -- --
Payable for:
Investments purchased -- -- 3,334,453 1,188,806 8,307,423
Capital stock redeemed 2,146,888 15,041 349,679 6,565,792 6,035,241
Futures variation margin -- -- -- -- --
Distributions -- 7,560 205,938 2,752,213 --
Investment advisory fee 162,441 6,180 191,952 868,102 293,344
Transfer agent fee 29,918 2,901 37,686 54,006 187,583
Pricing and bookkeeping fees 22,975 2,083 14,720 20,014 26,413
Directors' fees 21 2,128 578 1,023 2,019
Audit fee 12,089 7,598 9,890 13,117 14,022
Service and distribution fees 9,126 1,742 2,424 272,062 --
Custody fee 2,763 -- 765 3,099 4,860
Legal fee 5,283 1,884 -- 551 1,948
Registration fees 3,300 1,641 4,781 78,673 15,766
Reports to shareholders 7,869 7,096 22,667 -- 37,895
Deferred compensation plan -- -- -- -- --
Foreign capital gains tax payable -- -- -- -- --
Other liabilities 17,102 -- 2,570 -- 20,385
------------ ---------- ----------- ------------- -----------
Total liabilities 2,419,775 55,854 4,178,103 11,817,458 14,946,899
NET ASSETS 405,476,331 16,056,550 486,365,240 1,877,981,936 749,702,123
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Paid-in capital 391,686,834 15,002,417 455,517,998 1,846,496,229 749,702,123
Undistributed (overdistributed) net
investment income (1,230,558) 3,206 156,547 (7,643,402) --
Accumulated net investment loss -- -- -- -- --
Accumulated net realized gain (loss) 1,564,409 37,687 153,339 (28,653,616) --
Unrealized appreciation (depreciation) on:
Investments 13,455,646 1,013,240 30,537,356 67,782,725 --
Foreign currency translations -- -- -- -- --
Foreign capital gains tax -- -- -- -- --
Futures contracts -- -- -- -- --
------------ ---------- ----------- ------------- -----------
NET ASSETS 405,476,331 16,056,550 486,365,240 1,877,981,936 749,702,123
See Accompanying Notes to Financial Statements.
106-107 Spread
STATEMENTS OF ASSETS AND LIABILITIES____________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
COMMON INTERNATIONAL MID CAP SMALL CAP
STOCK GROWTH STOCK GROWTH GROWTH
FUND (a)($) FUND (a)($) FUND (a)($) FUND (a)($) FUND ($)
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Class A Shares 729,230 5,339,868 25,812,371 6,500,086 --
Class B Shares 1,926,830 2,086,070 12,050,432 5,772,056 --
Class C Shares 48,406 98,142 300,575 264,376 --
Class D Shares 152,462 293,867 776,703 802,682 --
Class G Shares -- 15,247,985 -- 808,876 --
Class T Shares -- -- -- 31,146,285 --
Class Z Shares 412,725,840 937,126,413 503,931,234 1,025,035,708 784,044,807
- -----------------------------------------------------------------------------------------------------------------------------------
SHARES OUTSTANDING:
Class A Shares 37,575 198,682 1,879,424 332,764 --
Class B Shares 100,081 78,383 889,685 298,426 --
Class C Shares 2,514 3,696 22,133 13,652 --
Class D Shares 7,923 11,032 56,999 41,482 --
Class G Shares -- 572,062 -- 41,892 --
Class T Shares -- -- -- 1,590,853 --
Class Z Shares 21,265,931 34,693,552 36,509,529 52,119,968 31,582,456
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES:
Net asset value per share (b)(c) 19.41 26.88 13.73 19.53 --
Maximum sales charge 5.75% 5.75% 5.75% 5.75% --
Maximum offering price per share (d) 20.59 28.52 14.57 20.72 --
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS B SHARES:
Net asset value and offering price per share (b)(c) 19.25 26.61 13.54 19.34 --
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS C SHARES:
Net asset value and offering price per share (b)(c) 19.25 26.55 13.58 19.37 --
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS D SHARES:
Net asset value and offering price per share (b)(c) 19.24 26.64 13.63 19.35 --
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS G SHARES:
Net asset value and offering price per share (b)(c) -- 26.65 -- 19.31 --
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS T SHARES:
Net asset value per share (b)(c) -- -- -- 19.58 --
Maximum sales charge -- -- -- 5.75% --
Maximum offering price per share (d) -- -- -- 20.77 --
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS Z SHARES:
Net asset value and offering price per share (c) 19.41 27.01 13.80 19.67 24.83
REAL ESTATE STRATEGIC SHORT TERM
EQUITY TECHNOLOGY INVESTOR BALANCED BOND
FUND (a)($) FUND (a)($) FUND (a)($) FUND (a)($) FUND (a)($)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Class A Shares 36,969,171 1,832,663 74,187,450 1,945,944 31,408,426
Class B Shares 9,043,657 3,213,144 8,513,324 5,754,584 24,705,639
Class C Shares 1,524,280 229,729 3,149,375 527,404 1,859,477
Class D Shares 4,892,023 41,523 820,832 519,963 15,919,149
Class G Shares -- -- -- -- 1,285,317
Class T Shares -- -- -- -- 25,761,838
Class Z Shares 1,035,546,577 34,999,110 259,830,243 613,337,259 442,544,425
- --------------------------------------------------------------------------------------------------------------------------------
SHARES OUTSTANDING:
Class A Shares 1,509,305 249,164 3,985,371 93,022 3,609,038
Class B Shares 369,057 441,591 460,692 275,385 2,838,790
Class C Shares 62,232 31,544 170,399 25,240 213,674
Class D Shares 199,708 5,677 44,454 24,891 1,829,153
Class G Shares -- -- -- -- 147,653
Class T Shares -- -- -- -- 2,960,093
Class Z Shares 42,255,634 4,728,149 13,938,968 29,335,632 50,850,195
- --------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES:
Net asset value per share (b)(c) 24.49 7.36 18.61 20.92 8.70
Maximum sales charge 5.75% 5.75% 5.75% 5.75% 4.75%
Maximum offering price per share (d) 25.98 7.81 19.75 22.20 9.13
- --------------------------------------------------------------------------------------------------------------------------------
CLASS B SHARES:
Net asset value and offering price per share (b)(c) 24.50 7.28 18.48 20.90 8.70
- --------------------------------------------------------------------------------------------------------------------------------
CLASS C SHARES:
Net asset value and offering price per share (b)(c) 24.49 7.28 18.48 20.90 8.70
- --------------------------------------------------------------------------------------------------------------------------------
CLASS D SHARES:
Net asset value and offering price per share (b)(c) 24.50 7.31 18.46 20.89 8.70
- --------------------------------------------------------------------------------------------------------------------------------
CLASS G SHARES:
Net asset value and offering price per share (b)(c) -- -- -- -- 8.70
- --------------------------------------------------------------------------------------------------------------------------------
CLASS T SHARES:
Net asset value per share (b)(c) -- -- -- -- 8.70
Maximum sales charge -- -- -- -- 4.75%
Maximum offering price per share (d) -- -- -- -- 9.13
- --------------------------------------------------------------------------------------------------------------------------------
CLASS Z SHARES:
Net asset value and offering price per share (c) 24.51 7.40 18.64 20.91 8.70
FIXED NATIONAL OREGON
INCOME MUNICIPAL MUNICIPAL DAILY
SECURITIES BOND BOND HIGH YIELD INCOME
FUND (a)($) FUND (a)($) FUND (a)($) FUND (a)($) COMPANY ($)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Class A Shares 9,188,766 968,549 2,692,572 288,249,334 --
Class B Shares 4,715,666 773,668 1,379,472 106,288,244 --
Class C Shares 132,086 819,204 63,250 14,450,335 --
Class D Shares 2,458,237 502,048 805,058 107,350,518 --
Class G Shares -- -- -- -- --
Class T Shares -- -- -- -- --
Class Z Shares 388,981,576 12,993,081 481,424,888 1,361,643,505 749,702,123
- --------------------------------------------------------------------------------------------------------------------------------
SHARES OUTSTANDING:
Class A Shares 673,358 92,437 212,731 32,883,042 --
Class B Shares 345,573 73,839 108,988 12,125,210 --
Class C Shares 9,680 78,185 4,997 1,648,455 --
Class D Shares 180,141 47,915 63,605 12,246,431 --
Class G Shares -- -- -- -- --
Class T Shares -- -- -- -- --
Class Z Shares 28,506,195 1,240,048 38,036,039 155,333,816 749,702,123
- --------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES:
Net asset value per share (b)(c) 13.65 10.48 12.66 8.77 --
Maximum sales charge 4.75% 4.75% 4.75% 4.75% --
Maximum offering price per share (d) 14.33 11.00 13.29 9.21 --
- --------------------------------------------------------------------------------------------------------------------------------
CLASS B SHARES:
Net asset value and offering price per share (b)(c) 13.65 10.48 12.66 8.77 --
- --------------------------------------------------------------------------------------------------------------------------------
CLASS C SHARES:
Net asset value and offering price per share (b)(c) 13.65 10.48 12.66 8.77 --
- --------------------------------------------------------------------------------------------------------------------------------
CLASS D SHARES:
Net asset value and offering price per share (b)(c) 13.65 10.48 12.66 8.77 --
- --------------------------------------------------------------------------------------------------------------------------------
CLASS G SHARES:
Net asset value and offering price per share (b)(c) -- -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
CLASS T SHARES:
Net asset value per share (b)(c) -- -- -- -- --
Maximum sales charge -- -- -- -- --
Maximum offering price per share (d) -- -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
CLASS Z SHARES:
Net asset value and offering price per share (c) 13.65 10.48 12.66 8.77 1.00
(a) Class C shares were initially offered on October 13, 2003.
(b) Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
(c) Redemption price per share is equal to net asset value less any applicable
redemption fees.
(d) On sales of $50,000 or more the offering price is reduced.
See Accompanying Notes to Financial Statements.
108-109 Spread
STATEMENTS OF OPERATIONS________________________________________________________
FOR THE SIX MONTHS ENDED FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
COMMON INTERNATIONAL MID CAP SMALL CAP
STOCK GROWTH STOCK GROWTH GROWTH
FUND (a)($) FUND (a)($) FUND (a)($) FUND (a)($) FUND ($)
- ------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME:
INCOME:
Dividends 2,808,159 4,003,804 2,355,016 1,424,926 392,167
Dividends from affiliates 121,328 -- -- -- --
Interest 17,953 18,757 103,827 134,607 146,759
Interest from affiliates -- -- -- -- --
Foreign withholding tax (5,633) (16,769) (238,193) (7,011) (2,330)
----------- ----------- ------------- ----------- -----------
Total income 2,941,807 4,005,792 2,220,650 1,552,522 536,596
- ------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fee 1,264,341 2,802,738 2,062,548 4,522,181 3,600,203
Distribution fee:
Class B 4,388 5,104 42,030 18,022 --
Class C 137 165 806 341 --
Class D 527 1,133 2,671 2,913 --
Class G -- 48,459 -- 2,617 --
Service fee:
Class A 542 5,892 30,276 6,372 --
Class B 1,451 1,701 14,010 6,007 --
Class C 45 55 266 114 --
Class D 174 382 886 967 --
Class G -- 22,366 -- 1,208 --
Shareholder services fees - Class T -- -- -- 45,379 --
Transfer agent fee:
Class A 498 5,374 56,919 8,747 --
Class B 1,677 1,881 36,532 12,295 --
Class C 38 40 335 167 --
Class D 139 310 2,174 1,358 --
Class G -- 15,319 -- 2,663 --
Class T -- -- -- 40,402 --
Class Z 440,677 822,238 247,083 770,115 555,401
Pricing and bookkeeping fees 65,221 80,586 53,526 70,332 75,267
Directors' fees 5,550 3,396 3,436 15,102 12,083
Custody fee 17,973 15,468 46,371 11,590 9,901
Audit fee 15,066 19,166 12,385 19,779 14,945
Registration fees 77,972 45,832 30,822 44,251 48,782
Other expenses 46,965 76,740 27,673 94,605 53,750
----------- ----------- ------------- ----------- -----------
Total Operating Expenses 1,943,381 3,974,345 2,670,749 5,697,527 4,370,332
Expenses waived/reimbursed by Investment Advisor -- -- (83,945) -- --
Fees waived by Distributor:
Class C -- -- -- -- --
Class D -- -- -- -- --
Fees waived by Investment Advisor:
Class A -- -- -- (245) --
Class B -- -- (6,164) (2,879) --
Class C -- -- (310) (40) --
Class D -- -- (2,065) (347) --
Class Z -- -- (193,255) (249,569) --
Custody earnings credit (12) (57) (296) (53) (420)
----------- ----------- ------------- ----------- -----------
Net Operating Expenses 1,943,369 3,974,288 2,384,714 5,444,394 4,369,912
Interest expense 721 -- -- -- --
----------- ----------- ------------- ----------- -----------
Net Expenses 1,944,090 3,974,288 2,384,714 5,444,394 4,369,912
----------- ----------- ------------- ----------- -----------
Net Investment Income (Loss) 997,717 31,504 (164,064) (3,891,872) (3,833,316)
REAL ESTATE STRATEGIC SHORT TERM
EQUITY TECHNOLOGY INVESTOR BALANCED BOND
FUND (a)($) FUND (a)($) FUND (a)($) FUND (a)($) FUND (a)($)
- ------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME:
INCOME:
Dividends 25,138,876 12,903 1,863,112 2,755,983 --
Dividends from affiliates -- -- -- 120,416 --
Interest 210,058 8,058 253,192 5,154,902 7,395,499
Interest from affiliates -- -- -- 86,775 228,796
Foreign withholding tax (18,567) (148) (17,635) (5,628) --
----------- ----------- ------------- ----------- -----------
Total income 25,330,367 20,813 2,098,669 8,112,448 7,624,295
- ------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fee 3,702,474 164,114 1,164,077 1,590,071 1,339,455
Distribution fee:
Class B 25,623 8,237 17,792 16,827 97,710
Class C 1,755 395 1,626 819 3,046
Class D 16,567 171 2,836 2,804 67,349
Class G -- -- -- -- 4,490
Service fee:
Class A 33,418 1,417 80,329 1,437 38,101
Class B 8,541 2,746 5,893 5,609 32,570
Class C 585 131 542 273 1,017
Class D 5,522 57 945 934 22,450
Class G -- -- -- -- 1,102
Shareholder services fees - Class T -- -- -- -- 20,052
Transfer agent fee:
Class A 19,065 1,419 44,272 1,500 15,482
Class B 6,919 3,140 8,045 4,880 23,479
Class C 362 204 1,262 240 403
Class D 3,110 197 898 782 6,741
Class G -- -- -- -- 2,329
Class T -- -- -- -- 20,475
Class Z 770,079 59,644 206,877 584,841 193,742
Pricing and bookkeeping fees 80,296 16,355 48,076 92,254 92,506
Directors' fees 10,887 1,896 5,302 7,361 1,133
Custody fee 12,707 6,105 11,968 23,082 10,971
Audit fee 14,790 10,705 18,456 14,703 17,909
Registration fees 105,758 59,689 22,729 81,281 113,263
Other expenses 71,049 15,626 33,254 56,255 39,657
----------- ----------- ------------- ----------- -----------
Total Operating Expenses 4,889,507 352,248 1,675,179 2,485,953 2,165,432
Expenses waived/reimbursed by Investment Advisor -- (68,552) -- -- (103,087)
Fees waived by Distributor:
Class C -- -- -- -- (2,447)
Class D -- -- -- -- (53,880)
Fees waived by Investment Advisor:
Class A -- -- -- -- --
Class B -- -- (5,431) -- --
Class C -- -- (325) -- --
Class D -- -- (568) -- --
Class Z -- -- (36,062) -- --
Custody earnings credit (119) (328) (161) (178) (378)
----------- ----------- ------------- ----------- -----------
Net Operating Expenses 4,889,388 283,368 1,632,632 2,485,775 2,005,640
Interest expense -- -- -- -- --
----------- ----------- ------------- ----------- -----------
Net Expenses 4,889,388 283,368 1,632,632 2,485,775 2,005,640
----------- ----------- ------------- ----------- -----------
Net Investment Income (Loss) 20,440,979 (262,555) 466,037 5,626,673 5,618,655
FIXED NATIONAL OREGON
INCOME MUNICIPAL MUNICIPAL DAILY
SECURITIES BOND BOND HIGH YIELD INCOME
FUND (a)($) FUND (a)($) FUND (a)($) FUND (a)($) COMPANY ($)
- ------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME:
INCOME:
Dividends -- -- -- -- --
Dividends from affiliates -- -- -- -- --
Interest 11,017,383 347,059 11,371,235 58,979,645 4,371,134
Interest from affiliates -- -- -- -- --
Foreign withholding tax -- -- -- -- --
----------- ----------- ------------- ----------- -----------
Total income 11,017,383 347,059 11,371,235 58,979,645 4,371,134
- ------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fee 1,182,274 39,358 1,205,022 5,318,067 1,990,584
Distribution fee:
Class B 16,954 2,586 4,706 374,180 --
Class C 189 1,907 150 19,057 --
Class D 9,279 1,814 2,983 408,997 --
Class G -- -- -- -- --
Service fee:
Class A 10,243 789 2,971 299,040 --
Class B 5,651 862 1,569 124,727 --
Class C 65 630 50 6,353 --
Class D 3,093 605 988 136,332 --
Class G -- -- -- -- --
Shareholder services fees - Class T -- -- -- -- --
Transfer agent fee:
Class A 9,734 906 1,183 110,276 --
Class B 6,023 838 686 62,170 --
Class C 51 427 8 2,903 --
Class D 2,870 334 425 59,300 --
Class G -- -- -- -- --
Class T -- -- -- -- --
Class Z 400,191 9,822 116,576 711,182 750,341
Pricing and bookkeeping fees 77,074 27,974 94,185 100,553 79,550
Directors' fees 4,509 1,738 7,282 23,651 11,327
Custody fee 9,393 2,276 8,444 24,232 10,810
Audit fee 16,611 14,120 16,812 17,740 14,461
Registration fees 55,560 47,471 80,189 221,754 33,974
Other expenses 27,804 12,264 33,528 113,283 58,683
----------- ----------- ------------- ----------- -----------
Total Operating Expenses 1,837,568 166,721 1,577,757 8,133,797 2,949,730
Expenses waived/reimbursed by Investment Advisor -- (106,237) -- -- --
Fees waived by Distributor:
Class C (46) (887) (70) (3,895) --
Class D (1,856) (847) (1,392) (81,800) --
Fees waived by Investment Advisor:
Class A -- -- -- -- --
Class B -- -- -- -- --
Class C -- -- -- -- --
Class D -- -- -- -- --
Class Z -- -- -- -- --
Custody earnings credit (268) (53) (24) (7,494) (88)
----------- ----------- ------------- ----------- -----------
Net Operating Expenses 1,835,398 58,697 1,576,271 8,040,608 2,949,642
Interest expense -- -- -- -- --
----------- ----------- ------------- ----------- -----------
Net Expenses 1,835,398 58,697 1,576,271 8,040,608 2,949,642
----------- ----------- ------------- ----------- -----------
Net Investment Income (Loss) 9,181,985 288,362 9,794,964 50,939,037 1,421,492
(a) Class C shares were initially offered on October 13, 2003.
See Accompanying Notes to Financial Statements.
110-111 Spread
STATEMENTS OF OPERATIONS________________________________________________________
FOR THE SIX MONTHS ENDED FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
COMMON INTERNATIONAL MID CAP SMALL CAP
STOCK GROWTH STOCK GROWTH GROWTH
FUND ($) FUND ($) FUND ($) FUND ($) FUND ($)
- -----------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FOREIGN CURRENCY, FUTURES CONTRACTS AND FOREIGN
CAPITAL GAINS TAX:
Net realized gain (loss) on:
Unaffiliated investments 42,736,790 63,181,126 16,874,142 73,956,697 88,360,265
Affiliated investments 3,150,135 -- -- -- --
Foreign currency transactions -- -- (127,635) -- --
Futures contracts -- -- -- -- --
---------- ---------- ------------- ---------- -----------
Net realized gain 45,886,925 63,181,126 16,746,507 73,956,697 88,360,265
---------- ---------- ------------- ---------- -----------
Change in net unrealized appreciation/depreciation on:
Investments 4,948,391 21,879,434 58,739,481 12,544,784 13,696,464
Foreign currency translations -- -- 214,196 -- --
Futures contracts -- -- -- -- --
Foreign capital gains tax -- -- (653,372) -- --
---------- ---------- ------------- ---------- -----------
Net change in net unrealized appreciation/depreciation 4,948,391 21,879,434 58,300,305 12,544,784 13,696,464
---------- ---------- ------------- ---------- -----------
Net Gain 50,835,316 85,060,560 75,046,812 86,501,481 102,056,729
---------- ---------- ------------- ---------- -----------
Net Increase Resulting from Operations 51,833,033 85,092,064 74,882,748 82,609,609 98,223,413
REAL ESTATE STRATEGIC SHORT TERM
EQUITY TECHNOLOGY INVESTOR BALANCED BOND
FUND ($) FUND ($) FUND ($) FUND ($) FUND ($)
- -----------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FOREIGN CURRENCY, FUTURES CONTRACTS AND FOREIGN
CAPITAL GAINS TAX:
Net realized gain (loss) on:
Unaffiliated investments 10,157,402 4,980,062 24,487,535 46,202,554 982,197
Affiliated investments -- -- -- 2,860,757 --
Foreign currency transactions -- 39 (91,065) -- --
Futures contracts -- -- -- -- (400,390)
----------- ---------- ----------- ---------- ----------
Net realized gain 10,157,402 4,980,101 24,396,470 49,063,311 581,807
----------- ---------- ----------- ---------- ----------
Change in net unrealized appreciation/depreciation on:
Investments 145,498,133 1,726,947 24,975,175 5,984,289 4,376,512
Foreign currency translations -- -- 13 -- --
Futures contracts -- -- -- -- (68,907)
Foreign capital gains tax -- -- -- -- --
----------- ---------- ----------- ---------- ----------
Net change in net unrealized appreciation/depreciation 145,498,133 1,726,947 24,975,188 5,984,289 4,307,605
----------- ---------- ----------- ---------- ----------
Net Gain 155,655,535 6,707,048 49,371,658 55,047,600 4,889,412
----------- ---------- ----------- ---------- ----------
Net Increase Resulting from Operations 176,096,514 6,444,493 49,837,695 60,674,273 10,508,067
FIXED NATIONAL OREGON
INCOME MUNICIPAL MUNICIPAL DAILY
SECURITIES BOND BOND HIGH YIELD INCOME
FUND ($) FUND ($) FUND ($) FUND ($) COMPANY ($)
- -----------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FOREIGN CURRENCY, FUTURES CONTRACTS AND FOREIGN
CAPITAL GAINS TAX:
Net realized gain (loss) on:
Unaffiliated investments 4,469,498 101,566 2,274,158 7,138,103 --
Affiliated investments -- -- -- -- --
Foreign currency transactions -- -- -- -- --
Futures contracts -- -- -- -- --
---------- --------- ---------- ----------- -----------
Net realized gain 4,469,498 101,566 2,274,158 7,138,103 --
---------- --------- ---------- ----------- -----------
Change in net unrealized appreciation/depreciation on:
Investments 6,446,913 588,784 19,157,214 51,523,061 --
Foreign currency translations -- -- -- -- --
Futures contracts -- -- -- -- --
Foreign capital gains tax -- -- -- -- --
---------- --------- ---------- ----------- -----------
Net change in net unrealized appreciation/depreciation 6,446,913 588,784 19,157,214 51,523,061 --
---------- --------- ---------- ----------- -----------
Net Gain 10,916,411 690,350 21,431,372 58,661,164 --
---------- --------- ---------- ----------- -----------
Net Increase Resulting from Operations 20,098,396 978,712 31,226,336 109,600,201 1,421,492
See Accompanying Notes to Financial Statements.
112-113 Spread
STATEMENTS OF CHANGES IN NET ASSETS_____________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
COMMON STOCK FUND
------------------------------------------------
(UNAUDITED)
SIX MONTHS PERIOD YEAR
ENDED ENDED ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
INCREASE (DECREASE) IN NET ASSETS: 2004 (a)($) 2003 (b)($) 2002 (c)($)
- --------------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income (loss) 997,717 1,506,437 2,314,001
Net realized gain (loss) on investments and
foreign currency transactions 45,886,925 (10,351,264) (76,671,127)
Net change in unrealized appreciation/depreciation
on investments, foreign currency translations
and foreign capital gains tax 4,948,391 70,348,296 (87,529,297)
------------ ------------ ------------
Net increase (decrease) resulting from
operations 51,833,033 61,503,469 (161,886,423)
- --------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A (707) -- (24)
Class B -- -- (365)
Class D -- -- (105)
Class Z (2,316,802) -- (2,325,116)
Return of capital:
Class Z -- -- --
------------ ------------ ------------
Total distributions to shareholders (2,317,509) -- (2,325,610)
- --------------------------------------------------------------------------------------------------------
NET CAPITAL SHARE TRANSACTIONS (62,557,474) (49,688,127) (100,375,770)
------------ ------------ ------------
REDEMPTION FEES -- -- --
------------ ------------ ------------
Net increase (decrease) in net assets (13,041,950) 11,815,342 (264,587,803)
- --------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 428,624,718 416,809,376 681,397,179
End of period 415,582,768 428,624,718 416,809,376
------------ ------------ ------------
Undistributed (overdistributed) net investment
income at end of period 186,654 1,506,446 --
Accumulated net investment loss at end of period -- -- --
GROWTH FUND
--------------------------------------------------
(UNAUDITED)
SIX MONTHS PERIOD YEAR
ENDED ENDED ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
INCREASE (DECREASE) IN NET ASSETS: 2004 (a)($) 2003 (b)($) 2002 (d)($)
- -----------------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income (loss) 31,504 (67,881) (334,512)
Net realized gain (loss) on investments and
foreign currency transactions 63,181,126 6,034,740 (234,361,212)
Net change in unrealized appreciation/depreciation
on investments, foreign currency translations
and foreign capital gains tax 21,879,434 138,988,772 (189,831,805)
------------ ------------ --------------
Net increase (decrease) resulting from
operations 85,092,064 144,955,631 (424,527,529)
- -----------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A -- -- --
Class B -- -- --
Class D -- -- --
Class Z -- -- --
Return of capital:
Class Z -- -- --
------------ ------------ --------------
Total distributions to shareholders -- -- --
- -----------------------------------------------------------------------------------------------------------
NET CAPITAL SHARE TRANSACTIONS (54,635,971) (43,866,493) (72,669,754)
------------ ------------ --------------
REDEMPTION FEES -- -- --
------------ ------------ --------------
Net increase (decrease) in net assets 30,456,093 101,089,138 (497,197,283)
- -----------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 929,736,252 828,647,114 1,325,844,397
End of period 960,192,345 929,736,252 828,647,114
------------ ------------ --------------
Undistributed (overdistributed) net investment
income at end of period 30,215 -- --
Accumulated net investment loss at end of period -- (1,289) --
INTERNATIONAL STOCK FUND
--------------------------------------------
(UNAUDITED)
SIX MONTHS PERIOD YEAR
ENDED ENDED ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
INCREASE (DECREASE) IN NET ASSETS: 2004 (a)($) 2003 (b)($) 2002 (c)($)
- -----------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income (loss) (164,064) 1,285,611 (60,403)
Net realized gain (loss) on investments and
foreign currency transactions 16,746,507 (4,669,563) (16,450,936)
Net change in unrealized appreciation/depreciation
on investments, foreign currency translations
and foreign capital gains tax 58,300,305 32,813,483 (5,145,567)
------------ ------------ ------------
Net increase (decrease) resulting from
operations 74,882,748 29,429,531 (21,656,906)
- -----------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A -- -- --
Class B -- -- --
Class D -- -- --
Class Z (1,289,659) -- (102,850)
Return of capital:
Class Z -- -- (403,799)
------------ ------------ ------------
Total distributions to shareholders (1,289,659) -- (506,649)
- -----------------------------------------------------------------------------------------------------
NET CAPITAL SHARE TRANSACTIONS 187,903,043 76,764,211 61,510,684
------------ ------------ ------------
REDEMPTION FEES 43,624 164,843 --
------------ ------------ ------------
Net increase (decrease) in net assets 261,539,756 106,358,585 39,347,129
- -----------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 281,331,559 174,972,974 135,625,845
End of period 542,871,315 281,331,559 174,972,974
------------ ------------ ------------
Undistributed (overdistributed) net investment
income at end of period -- 1,284,980 --
Accumulated net investment loss at end of period (168,743) -- (14,405)
MID CAP GROWTH FUND
------------------------------------------------
(UNAUDITED)
SIX MONTHS PERIOD YEAR
ENDED ENDED ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
INCREASE (DECREASE) IN NET ASSETS: 2004 (a)($) 2003 (b)($) 2002 (e)($)
- ---------------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income (loss) (3,891,872) (4,889,028) (5,336,228)
Net realized gain (loss) on investments and
foreign currency transactions 73,956,697 17,148,448 (89,710,944)
Net change in unrealized appreciation/depreciation
on investments, foreign currency translations
and foreign capital gains tax 12,544,784 179,938,855 (104,900,709)
-------------- -------------- ------------
Net increase (decrease) resulting from
operations 82,609,609 192,198,275 (199,947,881)
- ---------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A -- -- --
Class B -- -- --
Class D -- -- --
Class Z -- -- --
Return of capital:
Class Z -- -- --
-------------- -------------- ------------
Total distributions to shareholders -- -- --
- --------------------------------------------------------------------------------------------------------
NET CAPITAL SHARE TRANSACTIONS (51,453,393) 7,917,882 252,934,343
-------------- -------------- ------------
REDEMPTION FEES -- -- --
-------------- -------------- ------------
Net increase (decrease) in net assets 31,156,216 200,116,157 52,986,462
- --------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 1,039,173,853 839,057,696 786,071,234
End of period 1,070,330,069 1,039,173,853 839,057,696
-------------- -------------- ------------
Undistributed (overdistributed) net investment
income at end of period -- -- --
Accumulated net investment loss at end of period (3,894,057) (2,185) (3,410)
SMALL CAP GROWTH FUND
--------------------------------------------
(UNAUDITED)
SIX MONTHS PERIOD YEAR
ENDED ENDED ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
INCREASE (DECREASE) IN NET ASSETS: 2004 ($) 2003 (b)($) 2002 ($)
- -----------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income (loss) (3,833,316) (3,758,177) (5,349,560)
Net realized gain (loss) on investments and
foreign currency transactions 88,360,265 29,590,977 (116,601,064)
Net change in unrealized appreciation/depreciation
on investments, foreign currency translations
and foreign capital gains tax 13,696,464 124,510,064 (70,989,821)
------------ ------------ ------------
Net increase (decrease) resulting from
operations 98,223,413 150,342,864 (192,940,445)
- -----------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A -- -- --
Class B -- -- --
Class D -- -- --
Class Z -- -- --
Return of capital:
Class Z -- -- --
------------ ------------ ------------
Total distributions to shareholders -- -- --
- ----------------------------------------------------------------------------------------------------
NET CAPITAL SHARE TRANSACTIONS 48,205,821 (5,758,359) 68,005,564
------------ ------------ ------------
REDEMPTION FEES -- -- --
------------ ------------ ------------
Net increase (decrease) in net assets 146,429,234 144,584,505 (124,934,881)
- ----------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 637,615,573 493,031,068 617,965,949
End of period 784,044,807 637,615,573 493,031,068
------------ ------------ ------------
Undistributed (overdistributed) net investment
income at end of period -- 180,997 180,997
Accumulated net investment loss at end of period (3,652,319) -- --
(a) Class C shares were initially offered on October 13, 2003.
(b) The Fund changed its fiscal year end from December 31 to August 31.
(c) 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 renamed Class Z shares.
(d) 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 renamed Class Z
shares.
(e) 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 renamed
Class Z shares.
See Accompanying Notes to Financial Statements.
114-115 Spread
STATEMENTS OF CHANGES IN NET ASSETS_____________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
REAL ESTATE EQUITY FUND
----------------------------------------------
(UNAUDITED)
SIX MONTHS PERIOD YEAR
ENDED ENDED ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
INCREASE (DECREASE) IN NET ASSETS: 2004 (a)($) 2003 (b)($) 2002 (c)($)
- ---------------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income (loss) 20,440,979 16,618,449 33,395,460
Net realized gain (loss) on investments, foreign
currency transactions and futures contracts 10,157,402 8,176,522 (12,684,181)
Net change in unrealized appreciation/depreciation
on investments, foreign currency translations
and futures contracts 145,498,133 124,974,925 (5,589,540)
-------------- ------------ ------------
Net increase (decrease) resulting from
operations 176,096,514 149,769,896 15,121,739
- ---------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A (355,289) (64,007) (11,804)
Class B (77,449) (26,629) (12,009)
Class C (2,154) -- --
Class D (54,362) (18,629) (4,519)
Class G -- -- --
Class T -- -- --
Class Z (16,762,574) (11,791,170) (29,889,702)
From net realized gains:
Class A (177,644) -- --
Class B (51,632) -- --
Class C (3,877) -- --
Class D (34,947) -- --
Class Z (7,543,158) -- --
Return of capital:
Class Z -- -- (3,915,328)
-------------- ------------ ------------
Total distributions to shareholders (25,063,086) (11,900,435) (33,833,362)
- ---------------------------------------------------------------------------------------------------------
NET CAPITAL SHARE TRANSACTIONS 31,588,760 (9,506,449) 174,112,297
-------------- ------------ ------------
Net increase (decrease) in net assets 182,622,188 128,363,012 155,400,674
- ---------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 905,353,520 776,990,508 621,589,834
End of period 1,087,975,708 905,353,520 776,990,508
-------------- ------------ ------------
Undistributed (overdistributed) net investment income
at end of period 7,907,165 4,718,014 5,750,071
Accumulated net investment loss at end of period -- -- --
TECHNOLOGY FUND
--------------------------------------------
(UNAUDITED)
SIX MONTHS PERIOD YEAR
ENDED ENDED ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
INCREASE (DECREASE) IN NET ASSETS: 2004 (a)($) 2003 (b)($) 2002 (C)($)
- --------------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income (loss) (262,555) (97,458) (122,568)
Net realized gain (loss) on investments, foreign
currency transactions and futures contracts 4,980,101 3,262,715 (4,188,861)
Net change in unrealized appreciation/depreciation
on investments, foreign currency translations
and futures contracts 1,726,947 2,813,873 (748,526)
----------- ----------- -----------
Net increase (decrease) resulting from
operations 6,444,493 5,979,130 (5,059,955)
- -----------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A -- -- --
Class B -- -- --
Class C -- -- --
Class D -- -- --
Class G -- -- --
Class T -- -- --
Class Z -- -- --
From net realized gains:
Class A -- -- --
Class B -- -- --
Class C -- -- --
Class D -- -- --
Class Z -- -- --
Return of capital:
Class Z -- -- --
----------- ----------- -----------
Total distributions to shareholders -- -- --
- ----------------------------------------------------------------------------------------------------
NET CAPITAL SHARE TRANSACTIONS 12,572,189 7,256,837 2,738,412
----------- ----------- -----------
Net increase (decrease) in net assets 19,016,682 13,235,967 (2,321,543)
- ----------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 21,299,487 8,063,520 10,385,063
End of period 40,316,169 21,299,487 8,063,520
----------- ----------- -----------
Undistributed (overdistributed) net investment income
at end of period -- -- --
Accumulated net investment loss at end of period (262,555) -- --
STRATEGIC INVESTOR FUND
--------------------------------------------
(UNAUDITED)
SIX MONTHS PERIOD YEAR
ENDED ENDED ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
INCREASE (DECREASE) IN NET ASSETS: 2004 (a)($) 2003 (b)($) 2002 (c)($)
- -------------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income (loss) 466,037 1,290,099 1,880,227
Net realized gain (loss) on investments, foreign
currency transactions and futures contracts 24,396,470 1,254,211 (27,776,780)
Net change in unrealized appreciation/depreciation
on investments, foreign currency translations
and futures contracts 24,975,188 47,457,001 (13,657,887)
------------ ------------ ------------
Net increase (decrease) resulting from
operations 49,837,695 50,001,311 (39,554,440)
- -------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A (258,188) -- --
Class B -- -- --
Class C -- -- --
Class D -- -- --
Class G -- -- --
Class T -- -- --
Class Z (1,487,644) -- (1,839,312)
From net realized gains:
Class A -- -- --
Class B -- -- --
Class C -- -- --
Class D -- -- --
Class Z -- -- (376,144)
Return of capital:
Class Z -- -- --
------------ ------------ ------------
Total distributions to shareholders (1,745,832) -- (2,215,456)
- -------------------------------------------------------------------------------------------------------
NET CAPITAL SHARE TRANSACTIONS 6,741,340 (24,174,510) 168,107,411
------------ ------------ ------------
Net increase (decrease) in net assets 54,833,203 25,826,801 126,337,515
- -------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 291,668,021 265,841,220 139,503,705
End of period 346,501,224 291,668,021 265,841,220
------------ ------------ ------------
Undistributed (overdistributed) net investment income
at end of period 74,642 1,354,437 62,338
Accumulated net investment loss at end of period -- -- --
BALANCED FUND
--------------------------------------------
(UNAUDITED)
SIX MONTHS PERIOD YEAR
ENDED ENDED ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
INCREASE (DECREASE) IN NET ASSETS: 2004 (a)($) 2003 (b)($) 2002 (c)($)
- -------------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income (loss) 5,626,673 8,623,814 20,794,186
Net realized gain (loss) on investments, foreign
currency
transactions and futures contracts 49,063,311 (2,740,428) (71,176,504)
Net change in unrealized appreciation/depreciation
on investments, foreign currency translations
and futures contracts 5,984,289 58,617,792 (68,893,518)
------------ ------------ ------------
Net increase (decrease) resulting from operations 60,674,273 64,501,178 (119,275,836)
- -------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A (6,557) (2,855) (693)
Class B (12,633) (8,639) (2,254)
Class C (576) -- --
Class D (2,553) (2,920) (1,798)
Class G -- -- --
Class T -- -- --
Class Z (5,925,889) (6,954,163) (21,201,650)
From net realized gains:
Class A -- -- --
Class B -- -- --
Class C -- -- --
Class D -- -- --
Class Z -- -- --
Return of capital:
Class Z -- -- --
------------ ------------ ------------
Total distributions to shareholders (5,948,208) (6,968,577) (21,206,395)
- -------------------------------------------------------------------------------------------------------
NET CAPITAL SHARE TRANSACTIONS (77,832,268) (81,831,327) (173,776,980)
------------ ------------ ------------
Net increase (decrease) in net assets (23,106,203) (24,298,726) (314,259,211)
- -------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 645,191,357 669,490,083 983,749,294
End of period 622,085,154 645,191,357 669,490,083
------------ ------------ ------------
Undistributed (overdistributed) net investment income
at end of period 1,300,714 1,622,249 (355,183)
Accumulated net investment loss at end of period -- -- --
SHORT TERM BOND FUND
--------------------------------------------
(UNAUDITED)
SIX MONTHS PERIOD YEAR
ENDED ENDED ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
2004 (a)($) 2003 (b)($) 2002 (d)($)
- -------------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income (loss) 5,618,655 7,314,353 3,936,510
Net realized gain (loss) on investments, foreign
currency
transactions and futures contracts 581,807 1,411,670 (5,253)
Net change in unrealized appreciation/depreciation
on investments, foreign currency translations
and futures contracts 4,307,605 (5,882,484) 2,802,185
------------ ------------ ------------
Net increase (decrease) resulting from operations 10,508,067 2,843,539 6,733,442
- -------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A (285,984) (300,551) (7,886)
Class B (146,576) (163,965) (6,548)
Class C (7,165) -- --
Class D (156,456) (153,332) (9,865)
Class G (9,597) (19,560) (2,198)
Class T (264,414) (449,409) (48,546)
Class Z (4,672,599) (6,343,155) (3,843,068)
From net realized gains:
Class A -- -- --
Class B -- -- --
Class C -- -- --
Class D -- -- --
Class Z -- -- (18,783)
Return of capital:
Class Z -- -- --
------------ ------------ ------------
Total distributions to shareholders (5,542,791) (7,429,972) (3,936,894)
- -------------------------------------------------------------------------------------------------------
NET CAPITAL SHARE TRANSACTIONS (10,657,082) 186,414,680 301,621,677
------------ ------------ ------------
Net increase (decrease) in net assets (5,691,806) 181,828,247 304,418,225
- -------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 549,176,077 367,347,830 62,929,605
End of period 543,484,271 549,176,077 367,347,830
------------ ------------ ------------
Undistributed (overdistributed) net investment income
at end of period 81,538 5,674 (204,761)
Accumulated net investment loss at end of period -- -- --
(a) Class C shares were initially offered on October 13, 2003.
(b) The Fund changed its fiscal year end from December 31 to August 31.
(c) 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 renamed 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 renamed
Class Z shares.
See Accompanying Notes to Financial Statements.
116-117 Spread
STATEMENTS OF CHANGES IN NET ASSETS_____________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
FIXED INCOME
SECURITIES FUND
--------------------------------------------
(UNAUDITED)
SIX MONTHS PERIOD YEAR
ENDED ENDED ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
INCREASE (DECREASE) IN NET ASSETS: 2004 (a)($) 2003 (b)($) 2002 (c)($)
- -------------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income 9,181,985 13,690,036 24,670,569
Net realized gain (loss) on investments 4,469,498 9,807,289 (2,558,516)
Net change in unrealized appreciation/depreciation
on investments 6,446,913 (17,070,804) 14,601,556
------------ ------------ ------------
Net increase resulting from operations 20,098,396 6,426,521 36,713,609
- -------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A (156,602) (81,788) (1,157)
Class B (68,765) (56,382) (2,638)
Class C (832) -- --
Class D (39,878) (34,961) (1,013)
Class Z (9,386,455) (14,154,256) (25,339,044)
From net realized gains:
Class A -- -- --
Class B -- -- --
Class C -- -- --
Class D -- -- --
Class Z -- -- --
------------ ------------ ------------
Total distributions to shareholders (9,652,532) (14,327,387) (25,343,852)
- -------------------------------------------------------------------------------------------------------
NET CAPITAL SHARE TRANSACTIONS (125,560,130) (21,870,137) 73,248,344
------------ ------------ ------------
Net increase (decrease) in net assets (115,114,266) (29,771,003) 84,618,101
- -------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 520,590,597 550,361,600 465,743,499
End of period 405,476,331 520,590,597 550,361,600
------------ ------------ ------------
Undistributed (overdistributed) net investment income
at end of period (1,230,558) (760,011) (885,594)
NATIONAL MUNICIPAL
BOND FUND
-------------------------------------------
(UNAUDITED)
SIX MONTHS PERIOD YEAR
ENDED ENDED ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
INCREASE (DECREASE) IN NET ASSETS: 2004 (a)($) 2003 (b)($) 2002 (c)($)
- ------------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income 288,362 430,023 603,412
Net realized gain (loss) on investments 101,566 56,187 88,597
Net change in unrealized appreciation/depreciation
on investments 588,784 (330,997) 631,224
------------ ----------- ------------
Net increase resulting from operations 978,712 155,213 1,323,233
- ------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A (10,954) (6,156) (200)
Class B (9,525) (7,532) (232)
Class C (7,655) -- --
Class D (7,520) (5,576) (147)
Class Z (252,086) (413,051) (598,784)
From net realized gains:
Class A (6,106) (310) (230)
Class B (5,641) (477) (784)
Class C (6,127) -- --
Class D (3,786) (337) (220)
Class Z (98,282) (12,706) (66,172)
------------ ----------- ------------
Total distributions to shareholders (407,682) (446,145) (666,769)
- ------------------------------------------------------------------------------------------------------
NET CAPITAL SHARE TRANSACTIONS (298,022) (584,781) 2,233,945
------------ ----------- ------------
Net increase (decrease) in net assets 273,008 (875,713) 2,890,409
- ------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 15,783,542 16,659,255 13,768,846
End of period 16,056,550 15,783,542 16,659,255
------------ ----------- ------------
Undistributed (overdistributed) net investment income
at end of period 3,206 2,584 4,896
OREGON MUNICIPAL
BOND FUND
--------------------------------------------
(UNAUDITED)
SIX MONTHS PERIOD YEAR
ENDED ENDED ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
INCREASE (DECREASE) IN NET ASSETS: 2004 (a)($) 2003 (b)($) 2002 (c)($)
- -------------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income 9,794,964 14,184,403 22,413,341
Net realized gain (loss) on investments 2,274,158 3,354,784 3,932,577
Net change in unrealized appreciation/depreciation
on investments 19,157,214 (13,131,352) 17,775,246
------------ ------------ ------------
Net increase resulting from operations 31,226,336 4,407,835 44,121,164
- -------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A (44,532) (24,517) (932)
Class B (18,578) (14,008) (1,094)
Class C (651) -- --
Class D (13,330) (15,469) (1,673)
Class Z (9,702,874) (14,116,676) (22,348,370)
From net realized gains:
Class A (28,393) (1,127) (1,987)
Class B (15,169) (532) (2,513)
Class C (702) -- --
Class D (9,045) (496) (2,990)
Class Z (5,411,624) (299,094) (5,015,648)
------------ ------------ ------------
Total distributions to shareholders (15,244,898) (14,471,919) (27,375,207)
- -------------------------------------------------------------------------------------------------------
NET CAPITAL SHARE TRANSACTIONS (18,880,470) (10,834,612) 1,779,138
------------ ------------ ------------
Net increase (decrease) in net assets (2,899,032) (20,898,696) 18,525,095
- -------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 489,264,272 510,162,968 491,637,873
End of period 486,365,240 489,264,272 510,162,968
------------ ------------ ------------
Undistributed (overdistributed) net investment income
at end of period 156,547 141,548 131,976
HIGH YIELD FUND
------------------------------------------------
(UNAUDITED)
SIX MONTHS PERIOD YEAR
ENDED ENDED ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
INCREASE (DECREASE) IN NET ASSETS: 2004 (a)($) 2003 (b)($) 2002 (c)($)
- -----------------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income 50,939,037 50,179,150 29,377,465
Net realized gain (loss) on investments 7,138,103 2,667,555 (27,771,338)
Net change in unrealized appreciation/depreciation
on investments 51,523,061 7,100,037 9,777,957
-------------- -------------- ------------
Net increase resulting from operations 109,600,201 59,946,742 11,384,084
- -----------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A (7,281,794) (4,682,562) (111,753)
Class B (2,646,504) (2,122,494) (63,166)
Class C (130,142) -- --
Class D (2,989,217) (2,591,969) (57,867)
Class Z (41,791,468) (44,079,371) (30,110,118)
From net realized gains:
Class A -- -- --
Class B -- -- --
Class C -- -- --
Class D -- -- --
Class Z -- -- --
-------------- -------------- ------------
Total distributions to shareholders (54,839,125) (53,476,396) (30,342,904)
- -----------------------------------------------------------------------------------------------------------
NET CAPITAL SHARE TRANSACTIONS 239,105,798 806,131,939 551,477,756
-------------- -------------- ------------
Net increase (decrease) in net assets 293,866,874 812,602,285 532,518,936
- -----------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 1,584,115,062 771,512,777 238,993,841
End of period 1,877,981,936 1,584,115,062 771,512,777
-------------- -------------- ------------
Undistributed (overdistributed) net investment income
at end of period (7,643,402) (3,743,314) (989,027)
DAILY INCOME COMPANY
------------------------------------------------
(UNAUDITED)
SIX MONTHS PERIOD YEAR
ENDED ENDED ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
INCREASE (DECREASE) IN NET ASSETS: 2004($) 2003 (b)($) 2002 ($)
- -----------------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income 1,421,492 3,560,546 14,142,055
Net realized gain (loss) on investments -- -- --
Net change in unrealized appreciation/depreciation
on investments -- -- --
------------ -------------- --------------
Net increase resulting from operations 1,421,492 3,560,546 14,142,055
- -----------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Class A -- -- --
Class B -- -- --
Class C -- -- --
Class D -- -- --
Class Z (1,421,492) (3,560,546) (14,142,055)
From net realized gains:
Class A -- -- --
Class B -- -- --
Class C -- -- --
Class D -- -- --
Class Z -- -- --
------------ -------------- --------------
Total distributions to shareholders (1,421,492) (3,560,546) (14,142,055)
- -----------------------------------------------------------------------------------------------------------
NET CAPITAL SHARE TRANSACTIONS (148,461,758) (237,911,017) (117,460,299)
------------ -------------- --------------
Net increase (decrease) in net assets (148,461,758) (237,911,017) (117,460,299)
- -----------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 898,163,881 1,136,074,898 1,253,535,197
End of period 749,702,123 898,163,881 1,136,074,898
------------ -------------- --------------
Undistributed (overdistributed) net investment income
at end of period -- -- --
(a) Class C shares were initially offered on October 13, 2003.
(b) The Fund changed its fiscal year end from December 31 to August 31.
(c) 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 renamed Class Z shares.
See Accompanying Notes to Financial Statements.
118-119 Spread
STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY____________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
COMMON STOCK FUND
----------------------------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED
FEBRUARY 29, 2004 (a) AUGUST 31, 2003 (b) DECEMBER 31, 2002 (c)
------------------------- ------------------------- --------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($)
- ----------------------------------------------------------------------------------------------------------------------------------
CLASS A:
Subscriptions 29,529 545,798 10,945 170,123 2,138 31,961
Proceeds received in connection with merger -- -- -- -- -- --
Distributions reinvested 36 655 -- -- 2 24
Redemptions (4,958) (93,468) (117) (1,878) -- --
---------- ------------ ---------- ------------ ----------- ------------
Net increase 24,607 452,985 10,828 168,245 2,140 31,985
CLASS B:
Subscriptions 81,012 1,480,218 36,205 551,074 7,642 117,918
Distributions reinvested -- -- -- -- 25 365
Redemptions (17,148) (313,452) (7,327) (107,471) (328) (5,120)
---------- ------------ ---------- ------------ ----------- ------------
Net increase 63,864 1,166,766 28,878 443,603 7,339 113,163
CLASS C:
Subscriptions 8,474 154,614 -- -- -- --
Redemptions (5,960) (113,868) -- -- -- --
---------- ------------ ---------- ------------ ----------- ------------
Net increase 2,514 40,746 -- -- -- --
CLASS D:
Subscriptions 1,445 24,548 16,394 259,863 2,972 46,518
Distributions reinvested -- -- -- -- 7 105
Redemptions (81) (1,528) (11,846) (192,430) (968) (14,682)
---------- ------------ ---------- ------------ ----------- ------------
Net increase (decrease) 1,364 23,020 4,548 67,433 2,011 31,941
CLASS G:
Subscriptions -- -- -- -- -- --
Proceeds received in connection with merger -- -- -- -- -- --
Redemptions -- -- -- -- -- --
---------- ------------ ---------- ------------ ----------- ------------
Net increase (decrease) -- -- -- -- -- --
CLASS Z:
Subscriptions 1,861,410 34,215,864 3,346,207 52,008,289 7,624,871 129,705,574*
Proceeds received in connection with merger -- -- -- -- -- --
Distributions reinvested 124,008 2,261,905 -- -- 153,392 2,267,130
Redemptions (5,493,078) (100,718,760) (6,523,031) (102,375,697) (13,944,732) (232,525,563)
---------- ------------ ---------- ------------ ----------- ------------
Net decrease (3,507,660) (64,240,991) (3,176,824) (50,367,408) (6,166,469) (100,552,859)
GROWTH FUND
----------------------------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED
FEBRUARY 29, 2004 (a) AUGUST 31, 2003 (b) DECEMBER 31, 2002 (d)
------------------------- ------------------------- --------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($)
- ----------------------------------------------------------------------------------------------------------------------------------
CLASS A:
Subscriptions 44,722 1,157,299 50,514 1,127,877 6,415 135,724
Proceeds received in connection with merger -- -- -- -- 142,906 3,133,045
Distributions reinvested -- -- -- -- -- --
Redemptions (17,907) (463,735) (26,317) (600,530) (1,651) (35,026)
---------- ------------ ---------- ------------ ----------- ------------
Net increase 26,815 693,564 24,197 527,347 147,670 3,233,743
CLASS B:
Subscriptions 48,434 1,239,802 31,960 722,252 5,492 119,511
Distributions reinvested -- -- -- -- -- --
Redemptions (2,443) (62,346) (5,060) (113,169) -- --
---------- ------------ ---------- ------------ ----------- ------------
Net increase 45,991 1,177,456 26,900 609,083 5,492 119,511
CLASS C:
Subscriptions 8,232 210,674 -- -- -- --
Redemptions (4,536) (117,607) -- -- -- --
---------- ------------ ---------- ------------ ----------- ------------
Net increase 3,696 93,067 -- -- -- --
CLASS D:
Subscriptions 4,808 117,607 13,491 309,866 4,966 105,516
Distributions reinvested -- -- -- -- -- --
Redemptions (5,771) (142,663) (6,462) (148,435) -- --
---------- ------------ ---------- ------------ ----------- ------------
Net increase (decrease) (963) (25,056) 7,029 161,431 4,966 105,516
CLASS G:
Subscriptions 2,442 62,372 5,008 110,114 780 16,449
Proceeds received in connection with merger -- -- -- -- 668,443 14,636,657
Redemptions (35,180) (903,091) (58,288) (1,271,125) (11,143) (235,662)
---------- ------------ ---------- ------------ ----------- ------------
Net increase (decrease) (32,738) (840,719) (53,280) (1,161,011) 658,080 14,417,444
CLASS Z:
Subscriptions 2,540,421 65,695,157 3,770,779 84,770,150 6,673,385 165,334,435
Proceeds received in connection with merger -- -- -- -- 4,131,819 90,545,496
Distributions reinvested -- -- -- -- 100 2,235
Redemptions (4,680,162) (121,429,440) (5,869,216) (128,773,493) (14,167,826) (346,428,134)
---------- ------------ ---------- ------------ ----------- ------------
Net decrease (2,139,741) (55,734,283) (2,098,437) (44,003,343) (3,362,522) (90,545,968)
* Includes $4,174 of securities received in an in-kind transfer.
(a) Class C shares were initially offered on October 13, 2003.
(b) The Fund changed its fiscal year end from December 31 to August 31.
(c) Effective November 1, 2002, the Fund began offering four classes of shares:
Class A, Class B, Class D and Class Z shares. Prior to November 1, 2002, the
Fund was single class which, was subsequently renamed Class Z shares.
(d) Effective November 1, 2002, the Fund began offering five classes of shares:
Class A, Class B, Class D, Class G and Class Z shares. Prior to November 1,
2002, the Fund was single class, which was subsequently renamed Class Z
shares.
See Accompanying Notes to Financial Statements.
120-121 Spread
STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY____________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
INTERNATIONAL STOCK FUND
----------------------------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED
FEBRUARY 29, 2004 (a) AUGUST 31, 2003 (b) DECEMBER 31, 2002 (c)
------------------------- ------------------------- --------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($)
- ----------------------------------------------------------------------------------------------------------------------------------
CLASS A:
Subscriptions 234,117 2,918,838 179,774 1,838,487 103,222 1,040,525
Proceeds received in connection with merger -- -- -- -- 2,026,408 20,243,813
Redemptions (264,340) (3,344,524) (278,832) (2,814,836) (120,925) (1,215,758)
----------- ----------- ---------- ------------ ----------- ------------
Net increase (decrease) (30,223) (425,686) (99,058) (976,349) 2,008,705 20,068,580
CLASS B:
Subscriptions 155,191 1,976,057 117,506 1,216,734 49,073 492,261
Proceeds received in connection with merger -- -- -- -- 1,117,525 11,164,070
Redemptions (183,743) (2,318,261) (289,533) (2,950,070) (76,334) (768,135)
----------- ----------- ---------- ------------ ----------- ------------
Net increase (decrease) (28,552) (342,204) (172,027) (1,733,336) 1,090,264 10,888,196
CLASS C:
Subscriptions 46,355 576,257 -- -- -- --
Redemptions (24,222) (317,127) -- -- -- --
----------- ----------- ---------- ------------ ----------- ------------
Net increase 22,133 259,130 -- -- -- --
CLASS D:
Subscriptions 5,774 71,910 67,591 669,176 16,230 162,310
Proceeds received in connection with merger -- -- -- -- 56,019 559,632
Redemptions (4,917) (61,689) (65,502) (642,271) (18,196) (181,537)
----------- ----------- ---------- ------------ ----------- ------------
Net increase 857 10,221 2,089 26,905 54,053 540,405
CLASS G:
Subscriptions -- -- -- -- -- --
Proceeds received in connection with merger -- -- -- -- -- --
Redemptions -- -- -- -- -- --
----------- ----------- ---------- ------------ ----------- ------------
Net increase (decrease) -- -- -- -- -- --
CLASS T:
Subscriptions -- -- -- -- -- --
Proceeds received in connection with merger -- -- -- -- -- --
Redemptions -- -- -- -- -- --
----------- ----------- ---------- ------------ ----------- ------------
Net increase (decrease) -- -- -- -- -- --
CLASS Z:
Subscriptions 17,381,108 223,337,103 12,787,173 132,219,531 14,151,430 150,103,257
Proceeds received in connection with merger -- -- -- -- 1,426,094 14,246,687
Distributions reinvested 44,157 563,444 -- -- 48,107 478,672
Redemptions (2,731,474) (35,498,965) (5,233,439) (52,772,540) (12,634,316) (134,815,113)
----------- ----------- ---------- ------------ ----------- ------------
Net increase (decrease) 14,693,791 188,401,582 7,553,734 79,446,991 2,991,315 30,013,503
MID CAP GROWTH FUND
----------------------------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED
FEBRUARY 29, 2004 (a) AUGUST 31, 2003 (b) DECEMBER 31, 2002 (d)
------------------------- -------------------------- --------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($)
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A:
Subscriptions 186,468 3,462,168 389,366 6,472,166 15,672 237,394
Proceeds received in connection with merger -- -- -- -- 68,335 1,049,181
Redemptions (103,892) (1,901,652) (219,073) (3,745,690) (4,112) (61,507)
---------- ------------ ----------- ------------ ----------- ------------
Net increase (decrease) 82,576 1,560,516 170,293 2,726,476 79,895 1,225,068
CLASS B:
Subscriptions 83,026 1,562,397 47,439 745,476 7,078 106,916
Proceeds received in connection with merger -- -- -- -- 230,587 3,540,022
Redemptions (20,537) (380,090) (40,673) (637,724) (8,494) (127,352)
---------- ------------ ----------- ------------ ----------- ------------
Net increase (decrease) 62,489 1,182,307 6,766 107,752 229,171 3,519,586
CLASS C:
Subscriptions 16,108 306,691 -- -- -- --
Redemptions (2,456) (47,404) -- -- -- --
---------- ------------ ----------- ------------ ----------- ------------
Net increase 13,652 259,287 -- -- -- --
CLASS D:
Subscriptions 2,849 51,030 18,375 281,516 11,403 172,855
Proceeds received in connection with merger -- -- -- -- 18,373 282,040
Redemptions (2,389) (44,661) (6,698) (106,816) (431) (6,374)
---------- ------------ ----------- ------------ ----------- ------------
Net increase 460 6,369 11,677 174,700 29,345 448,521
CLASS G:
Subscriptions 880 16,559 1,272 19,333 222 3,363
Proceeds received in connection with merger -- -- -- -- 51,696 794,054
Redemptions (3,805) (71,489) (7,460) (114,734) (913) (13,602)
---------- ------------ ----------- ------------ ----------- ------------
Net increase (decrease) (2,925) (54,930) (6,188) (95,401) 51,005 783,815
CLASS T:
Subscriptions 15,804 297,720 22,853 357,740 1,181 17,735
Proceeds received in connection with merger -- -- -- -- 1,766,763 27,163,275
Redemptions (75,732) (1,436,236) (127,510) (2,002,189) (12,506) (187,071)
---------- ------------ ----------- ------------ ----------- ------------
Net increase (decrease) (59,928) (1,138,516) (104,657) (1,644,449) 1,755,438 26,993,939
CLASS Z:
Subscriptions 3,636,814 68,652,950 15,558,486 243,718,260 23,256,300 377,870,023
Proceeds received in connection with merger -- -- -- -- 16,875,517 259,343,536
Distributions reinvested -- -- -- -- -- --
Redemptions (6,503,094) (121,921,376) (15,158,849) (237,069,456) (25,658,966) (417,250,145)
---------- ------------ ----------- ------------ ----------- ------------
Net increase (decrease) (2,866,280) (53,268,426) 399,637 6,648,804 14,472,851 219,963,414
(a) Class C shares were initially offered on October 13, 2003.
(b) The Fund changed its fiscal year end from December 31 to August 31.
(c) 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 renamed 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 renamed
Class Z shares.
See Accompanying Notes to Financial Statements.
122-123 Spread
STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY____________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
SMALL CAP GROWTH FUND
---------------------------------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED
FEBRUARY 29, 2004 AUGUST 31, 2003 (a) DECEMBER 31, 2002
--------------------------- --------------------------- --------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($)
- ----------------------------------------------------------------------------------------------------------------------
CLASS A:
Subscriptions -- -- -- -- -- --
Distributions reinvested -- -- -- -- -- --
Redemptions -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase -- -- -- -- -- --
CLASS B:
Subscriptions -- -- -- -- -- --
Distributions reinvested -- -- -- -- -- --
Redemptions -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase -- -- -- -- -- --
CLASS C:
Subscriptions -- -- -- -- -- --
Distributions reinvested -- -- -- -- -- --
Redemptions -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase -- -- -- -- -- --
CLASS D:
Subscriptions -- -- -- -- -- --
Distributions reinvested -- -- -- -- -- --
Redemptions -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase -- -- -- -- -- --
CLASS Z:
Subscriptions 7,226,432 169,172,240 8,361,804 154,165,644 19,739,178 396,004,404
Distributions reinvested -- -- -- -- -- --
Redemptions (5,137,238) (120,966,419) (9,108,258) (159,924,003) (17,331,161) (327,998,840)
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) 2,089,194 48,205,821 (746,454) (5,758,359) 2,408,017 68,005,564
REAL ESTATE EQUITY FUND
---------------------------------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED
FEBRUARY 29, 2004 (b) AUGUST 31, 2003 (a) DECEMBER 31, 2002 (c)
--------------------------- --------------------------- --------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($)
- ----------------------------------------------------------------------------------------------------------------------
CLASS A:
Subscriptions 1,183,397 26,137,904 655,533 12,613,973 50,286 889,637
Distributions reinvested 21,395 479,334 2,966 56,728 614 10,830
Redemptions (283,274) (6,169,584) (121,571) (2,319,879) (41) (701)
------------ ------------ ------------ ------------ ------------ ------------
Net increase 921,518 20,447,654 536,928 10,350,822 50,859 899,766
CLASS B:
Subscriptions 168,553 3,818,475 178,356 3,330,663 59,855 1,057,426
Distributions reinvested 4,006 89,245 860 16,519 426 7,526
Redemptions (30,561) (712,570) (12,411) (241,060) (27) (486)
------------ ------------ ------------ ------------ ------------ ------------
Net increase 141,998 3,195,150 166,805 3,106,122 60,254 1,064,466
CLASS C:
Subscriptions 64,825 1,502,299 -- -- -- --
Distributions reinvested 254 5,799 -- -- -- --
Redemptions (2,847) (64,209) -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase 62,232 1,443,889 -- -- -- --
CLASS D:
Subscriptions 41,057 886,947 147,439 2,763,824 20,247 355,423
Distributions reinvested 3,327 73,742 775 14,883 234 4,139
Redemptions (9,478) (214,418) (3,893) (76,027) -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase 34,906 746,271 144,321 2,702,680 20,481 359,562
CLASS Z:
Subscriptions 10,166,835 228,829,365 19,396,080 358,557,734 33,091,005 607,721,107
Distributions reinvested 857,631 18,924,072 497,422 9,407,709 1,648,657 30,201,439
Redemptions (10,786,322) (241,997,641) (21,373,984) (393,631,516) (25,701,989) (466,134,043)
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) 238,144 5,755,796 (1,480,482) (25,666,073) 9,037,673 171,788,503
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class C shares were initially offered on October 13, 2003.
(c) 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 renamed Class Z shares.
See Accompanying Notes to Financial Statements.
124-125 Spread
STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY____________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
TECHNOLOGY FUND
---------------------------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED
FEBRUARY 29, 2004 (a) AUGUST 31, 2003 (b) DECEMBER 31, 2002 (c)
------------------------- ------------------------- -------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($)
- ---------------------------------------------------------------------------------------------------------------------------------
CLASS A:
Subscriptions 309,091 2,158,753 170,882 795,971 266 1,013
Proceeds received in connection with merger -- -- -- -- -- --
Distributions reinvested -- -- -- -- -- --
Redemptions (123,527) (877,518) (107,548) (503,942) -- --
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) 185,564 1,281,235 63,334 292,029 266 1,013
CLASS B:
Subscriptions 384,571 2,636,093 256,020 1,267,177 1,777 6,709
Proceeds received in connection with merger -- -- -- -- -- --
Redemptions (155,588) (1,064,227) (45,189) (239,637) -- --
----------- ----------- ----------- ----------- ----------- -----------
Net increase 228,983 1,571,866 210,831 1,027,540 1,777 6,709
CLASS C:
Subscriptions 45,448 322,844 -- -- -- --
Distributions reinvested -- -- -- -- -- --
Redemptions (13,904) (99,776) -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
Net increase 31,544 223,068 -- -- -- --
CLASS D:
Subscriptions 7,527 46,830 24,865 123,446 263 1,000
Proceeds received in connection with merger -- -- -- -- -- --
Redemptions (4,359) (30,474) (22,619) (115,105) -- --
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) 3,168 16,356 2,246 8,341 263 1,000
CLASS Z:
Subscriptions 3,434,345 23,735,771 4,006,292 18,434,013 2,055,133 10,220,887
Proceeds received in connection with merger -- -- -- -- -- --
Distributions reinvested -- -- -- -- -- --
Redemptions (2,020,229) (14,256,107) (2,819,286) (12,505,086) (1,621,025) (7,491,197)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) 1,414,116 9,479,664 1,187,006 5,928,927 434,108 2,729,690
STRATEGIC INVESTOR FUND
---------------------------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED
FEBRUARY 29, 2004 (a) AUGUST 31, 2003 (b) DECEMBER 31, 2002 (c)
------------------------- ------------------------- -------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($)
- ---------------------------------------------------------------------------------------------------------------------------------
CLASS A:
Subscriptions 486,612 8,727,538 75,306 1,062,103 16,466 220,586
Proceeds received in connection with merger -- -- -- -- 4,196,653 54,514,520
Distributions reinvested 13,874 239,722 -- -- -- --
Redemptions (284,621) (4,876,750) (383,804) (5,265,019) (135,115) (1,789,207)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) 215,865 4,090,510 (308,498) (4,202,916) 4,078,004 52,945,899
CLASS B:
Subscriptions 268,214 4,789,194 63,797 901,976 23,766 316,907
Proceeds received in connection with merger -- -- -- -- 163,845 2,128,341
Redemptions (22,282) (386,099) (28,440) (390,511) (8,208) (108,351)
----------- ----------- ----------- ----------- ----------- -----------
Net increase 245,932 4,403,095 35,357 511,465 179,403 2,336,897
CLASS C:
Subscriptions 171,165 3,117,326 -- -- -- --
Distributions reinvested -- -- -- -- -- --
Redemptions (766) (13,671) -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
Net increase 170,399 3,103,655 -- -- -- --
CLASS D:
Subscriptions 683 11,781 27,649 397,532 1,170 15,708
Proceeds received in connection with merger -- -- -- -- 27,645 359,105
Redemptions (792) (13,404) (10,199) (149,190) (1,702) (22,407)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) (109) (1,623) 17,450 248,342 27,113 352,406
CLASS Z:
Subscriptions 2,608,875 45,231,774 5,892,671 84,681,724 24,026,235 352,586,497
Proceeds received in connection with merger -- -- -- -- 180,824 2,348,913
Distributions reinvested 85,074 1,470,072 -- -- 171,442 2,187,604
Redemptions (2,985,436) (51,556,143) (7,620,153) (105,413,125) (18,027,370) (244,650,805)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) (291,487) (4,854,297) (1,727,482) (20,731,401) 6,351,131 112,472,209
(a) Class C shares were initially offered on October 13, 2003.
(b) The Fund changed its fiscal year end from December 31 to August 31.
(c) 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 renamed Class Z shares.
See Accompanying Notes to Financial Statements.
126-127 Spread
STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY____________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
BALANCED FUND
----------------------------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED
FEBRUARY 29, 2004 (a) AUGUST 31, 2003 (b) DECEMBER 31, 2002 (c)
------------------------- ------------------------- --------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($)
- ----------------------------------------------------------------------------------------------------------------------------------
CLASS A:
Subscriptions 64,004 1,297,673 33,607 621,075 8,288 147,819
Distributions reinvested 323 6,364 155 2,818 38 668
Redemptions (6,239) (127,763) (7,153) (133,619) (1) (20)
---------- ------------ ---------- ------------ ----------- ------------
Net increase (decrease) 58,088 1,176,274 26,609 490,274 8,325 148,467
CLASS B:
Subscriptions 120,860 2,418,386 157,057 2,842,073 34,842 622,186
Distributions reinvested 541 10,710 424 7,724 118 2,064
Redemptions (20,811) (418,931) (17,361) (311,808) (285) (5,115)
---------- ------------ ---------- ------------ ----------- ------------
Net increase (decrease) 100,590 2,010,165 140,120 2,537,989 34,675 619,135
CLASS C:
Subscriptions 25,290 511,114 -- -- -- --
Distributions reinvested 29 576 -- -- -- --
Redemptions (79) (1,621) -- -- -- --
---------- ------------ ---------- ------------ ----------- ------------
Net increase 25,240 510,069 -- -- -- --
CLASS D:
Subscriptions 7,246 139,722 27,277 487,690 25,391 456,181
Distributions reinvested 122 2,391 152 2,764 100 1,738
Redemptions (22,678) (456,969) (12,719) (224,597) -- --
---------- ------------ ---------- ------------ ----------- ------------
Net increase (decrease) (15,310) (314,856) 14,710 265,857 25,491 457,919
CLASS G:
Subscriptions -- -- -- -- -- --
Proceeds received in connection with merger -- -- -- -- -- --
Distributions reinvested -- -- -- -- -- --
Redemptions -- -- -- -- -- --
---------- ------------ ---------- ------------ ----------- ------------
Net increase (decrease) -- -- -- -- -- --
CLASS T:
Subscriptions -- -- -- -- -- --
Proceeds received in connection with merger -- -- -- -- -- --
Distributions reinvested -- -- -- -- -- --
Redemptions -- -- -- -- -- --
---------- ------------ ---------- ------------ ----------- ------------
Net increase (decrease) -- -- -- -- -- --
CLASS Z:
Subscriptions 2,180,756 43,652,972 3,932,560 71,002,827 6,801,092 129,567,321
Proceeds received in connection with merger -- -- -- -- -- --
Distributions reinvested 299,555 5,861,788 379,248 6,864,708 1,137,024 20,929,510
Redemptions (6,511,533) (130,728,680) (9,102,129) (162,992,982) (17,367,916) (325,499,332)
---------- ------------ ---------- ------------ ----------- ------------
Net increase (decrease) (4,031,222) (81,213,920) (4,790,321) (85,125,447) (9,429,800) (175,002,501)
SHORT TERM BOND FUND
----------------------------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED
FEBRUARY 29, 2004 (a) AUGUST 31, 2003 (b) DECEMBER 31, 2002 (d)
-------------------------- -------------------------- -------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($)
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A:
Subscriptions 1,549,245 13,437,522 4,593,712 40,026,783 648,705 5,597,578
Distributions reinvested 27,668 240,118 23,346 203,076 712 6,168
Redemptions (2,288,929) (19,842,515) (935,142) (8,119,243) (10,279) (88,636)
----------- ------------ ----------- ------------ ----------- -----------
Net increase (decrease) (712,016) (6,164,875) 3,681,916 32,110,616 639,138 5,515,110
CLASS B:
Subscriptions 457,905 3,969,651 2,912,411 25,355,903 724,659 6,252,006
Distributions reinvested 13,518 117,322 15,236 132,630 571 4,943
Redemptions (759,805) (6,588,588) (522,269) (4,540,064) (3,436) (29,668)
----------- ------------ ----------- ------------ ----------- -----------
Net increase (decrease) (288,382) (2,501,615) 2,405,378 20,948,469 721,794 6,227,281
CLASS C:
Subscriptions 247,154 2,142,584 -- -- -- --
Distributions reinvested 670 5,819 -- -- -- --
Redemptions (34,150) (295,617) -- -- -- --
----------- ------------ ----------- ------------ ----------- -----------
Net increase 213,674 1,852,786 -- -- -- --
CLASS D:
Subscriptions 179,410 1,555,665 1,835,008 15,983,699 630,014 5,435,948
Distributions reinvested 14,528 126,063 15,226 132,466 1,027 8,883
Redemptions (511,619) (4,437,759) (305,609) (2,657,104) (28,832) (248,791)
----------- ------------ ----------- ------------ ----------- -----------
Net increase (decrease) (317,681) (2,756,031) 1,544,625 13,459,061 602,209 5,196,040
CLASS G:
Subscriptions 484 4,199 19,116 168,060 8,127 69,466
Proceeds received in connection with merger -- -- -- -- 208,508 1,797,110
Distributions reinvested 1,079 9,365 2,089 18,273 235 2,041
Redemptions (41,130) (356,783) (50,125) (437,235) (730) (6,301)
----------- ------------ ----------- ------------ ----------- -----------
Net increase (decrease) (39,567) (343,219) (28,920) (250,902) 216,140 1,862,316
CLASS T:
Subscriptions 22,680 196,744 364,019 3,195,681 63,115 544,886
Proceeds received in connection with merger -- -- -- -- 3,594,178 30,982,225
Distributions reinvested 26,764 232,265 45,992 397,049 5,002 43,369
Redemptions (363,076) (3,147,503) (694,581) (6,031,954) (104,000) (898,480)
----------- ------------ ----------- ------------ ----------- -----------
Net increase (decrease) (313,632) (2,718,494) (284,570) (2,439,224) 3,558,295 30,672,000
CLASS Z:
Subscriptions 14,762,634 128,088,442 33,169,321 289,096,535 16,131,131 138,763,864
Proceeds received in connection with merger -- -- -- -- 22,121,411 190,685,846
Distributions reinvested 195,174 1,693,696 312,399 2,717,394 426,395 3,668,146
Redemptions (14,739,230) (127,807,772) (19,471,607) (169,227,269) (9,419,905) (80,968,926)
----------- ------------ ----------- ------------ ----------- -----------
Net increase (decrease) 218,578 1,974,366 14,010,113 122,586,660 29,259,032 252,148,930
(a) Class C shares were initially offered on October 13, 2003.
(b) The Fund changed its fiscal year end from December 31 to August 31.
(c) 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 renamed 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 renamed
Class Z shares.
See Accompanying Notes to Financial Statements.
128-129 Spread
STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY____________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
FIXED INCOME SECURITIES FUND
---------------------------------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED
FEBRUARY 29, 2004 (a) AUGUST 31, 2003 (b) DECEMBER 31, 2002 (c)
--------------------------- --------------------------- ---------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($)
- --------------------------------------------------------------------------------------------------------------------
CLASS A:
Subscriptions 188,853 2,552,964 726,952 9,909,718 69,868 939,670
Distributions reinvested 10,213 138,352 4,853 65,705 19 252
Redemptions (88,242) (1,191,346) (239,158) (3,233,766) -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase 110,824 1,499,970 492,647 6,741,657 69,887 939,922
CLASS B:
Subscriptions 66,726 901,787 262,519 3,564,890 108,490 1,456,255
Distributions reinvested 3,747 50,765 3,019 41,001 148 1,998
Redemptions (55,520) (750,186) (43,299) (588,947) (257) (3,454)
------------ ------------ ------------ ------------ ------------ ------------
Net increase 14,953 202,366 222,239 3,016,944 108,381 1,454,799
CLASS C:
Subscriptions 15,310 207,175 -- -- -- --
Distributions reinvested 52 712 -- -- -- --
Redemptions (5,682) (76,813) -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase 9,680 131,074 -- -- -- --
CLASS D:
Subscriptions 2,392 32,179 226,577 3,084,131 31,506 421,439
Distributions reinvested 1,672 22,656 1,525 20,715 38 510
Redemptions (21,236) (286,224) (62,333) (849,629) -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) (17,172) (231,389) 165,769 2,255,217 31,544 421,949
CLASS Z:
Subscriptions 3,011,976 40,720,670 13,907,825 189,047,650 22,424,154 299,097,456
Distributions reinvested 653,780 8,853,550 1,009,178 13,708,472 1,948,592 25,971,318
Redemptions (13,100,904) (176,736,371) (17,459,206) (236,640,077) (19,120,878) (254,637,100)
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) (9,435,148) (127,162,151) (2,542,203) (33,883,955) 5,251,868 70,431,674
NATIONAL MUNICIPAL BOND FUND
-----------------------------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED
FEBRUARY 29, 2004 (a) AUGUST 31, 2003 (b) DECEMBER 31, 2002 (c)
------------------------- ------------------------- ---------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($)
- ----------------------------------------------------------------------------------------------------------------
CLASS A:
Subscriptions 55,761 576,965 53,632 553,278 6,496 66,135
Distributions reinvested 1,358 14,065 578 5,930 41 425
Redemptions (4,072) (41,386) (21,357) (221,347) -- --
---------- ------------ ---------- ------------ ------------ ------------
Net increase 53,047 549,644 32,853 337,861 6,537 66,560
CLASS B:
Subscriptions 23,390 241,011 59,020 608,830 21,761 222,588
Distributions reinvested 983 10,177 460 4,713 89 906
Redemptions (9,261) (95,403) (7,781) (79,981) (14,822) (150,595)
---------- ------------ ---------- ------------ ------------ ------------
Net increase 15,112 155,785 51,699 533,562 7,028 72,899
CLASS C:
Subscriptions 77,251 794,043 -- -- -- --
Distributions reinvested 1,033 10,693 -- -- -- --
Redemptions (99) (1,024) -- -- -- --
---------- ------------ ---------- ------------ ------------ ------------
Net increase 78,185 803,712 -- -- -- --
CLASS D:
Subscriptions 4,788 49,597 39,862 410,170 8,119 83,038
Distributions reinvested 551 5,707 291 2,986 32 322
Redemptions (1,222) (12,454) (1,214) (12,486) (3,292) (33,443)
---------- ------------ ---------- ------------ ------------ ------------
Net increase (decrease) 4,117 42,850 38,939 400,670 4,859 49,917
CLASS Z:
Subscriptions 373,247 3,852,076 592,742 6,133,480 1,109,593 11,268,258
Distributions reinvested 29,759 308,052 37,677 387,633 64,411 649,959
Redemptions (582,923) (6,010,141) (812,144) (8,377,987) (981,956) (9,873,648)
---------- ------------ ---------- ------------ ------------ ------------
Net increase (decrease) (179,917) (1,850,013) (181,725) (1,856,874) 192,048 2,044,569
(a) Class C shares were initially offered on October 13, 2003.
(b) The Fund changed its fiscal year end from December 31 to August 31.
(c) 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 renamed Class Z shares.
See Accompanying Notes to Financial Statements.
130-131 Spread
STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY____________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
OREGON MUNICIPAL BOND FUND
---------------------------------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED
FEBRUARY 29, 2004 (a) AUGUST 31, 2003 (b) DECEMBER 31, 2002 (c)
--------------------------- --------------------------- ---------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($)
- ----------------------------------------------------------------------------------------------------------------------
CLASS A:
Subscriptions 50,516 631,147 143,490 1,801,219 37,901 471,456
Distributions reinvested 3,975 49,715 1,224 15,231 236 2,929
Redemptions (16,316) (202,822) (8,295) (103,112) -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase 38,175 478,040 136,419 1,713,338 38,137 474,385
CLASS B:
Subscriptions 28,079 350,724 52,585 657,645 33,682 419,900
Distributions reinvested 1,621 20,264 334 4,158 170 2,114
Redemptions (2,306) (28,736) (1,187) (15,171) (3,990) (49,521)
------------ ------------ ------------ ------------ ------------ ------------
Net increase 27,394 342,252 51,732 646,632 29,862 372,493
CLASS C:
Subscriptions 4,890 61,000 -- -- -- --
Distributions reinvested 107 1,337 -- -- -- --
Redemptions -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase 4,997 62,337 -- -- -- --
CLASS D:
Subscriptions 12,020 148,564 51,705 648,502 37,686 472,508
Distributions reinvested 1,302 16,283 628 7,849 109 1,356
Redemptions (6,824) (85,028) (31,042) (389,956) (1,979) (24,640)
------------ ------------ ------------ ------------ ------------ ------------
Net increase 6,498 79,819 21,291 266,395 35,816 449,224
CLASS Z:
Subscriptions 2,009,427 25,069,697 10,541,884 131,976,815 13,500,076 167,348,905
Distributions reinvested 988,802 12,367,536 910,985 11,381,588 1,896,736 23,528,226
Redemptions (4,590,456) (57,280,151) (12,534,293) (156,819,380) (15,383,205) (190,394,095)
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) (1,592,227) (19,842,918) (1,081,424) (13,460,977) 13,607 483,036
HIGH YIELD FUND
---------------------------------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED
FEBRUARY 29, 2004 (a) AUGUST 31, 2003 (b) DECEMBER 31, 2002 (c)
--------------------------- --------------------------- ---------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($)
- ----------------------------------------------------------------------------------------------------------------------
CLASS A:
Subscriptions 14,785,382 128,562,588 25,041,610 213,784,547 4,382,301 36,558,214
Distributions reinvested 723,064 6,305,619 450,683 3,856,013 10,597 88,687
Redemptions (5,396,773) (46,797,962) (6,784,180) (57,991,328) (329,642) (2,758,792)
------------ ------------ ------------ ------------ ------------ ------------
Net increase 10,111,673 88,070,245 18,708,113 159,649,232 4,063,256 33,888,109
CLASS B:
Subscriptions 2,200,553 19,105,028 9,063,139 77,330,185 2,007,189 16,716,021
Distributions reinvested 189,362 1,650,728 148,406 1,269,735 3,910 32,718
Redemptions (863,121) (7,519,387) (609,559) (5,189,719) (14,669) (122,617)
------------ ------------ ------------ ------------ ------------ ------------
Net increase 1,526,794 13,236,369 8,601,986 73,410,201 1,996,430 16,626,122
CLASS C:
Subscriptions 1,711,773 14,968,087 -- -- -- --
Distributions reinvested 7,282 63,785 -- -- -- --
Redemptions (70,600) (615,336) -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase 1,648,455 14,416,536 -- -- -- --
CLASS D:
Subscriptions 1,055,340 9,105,474 10,747,325 91,694,699 2,151,932 17,940,183
Distributions reinvested 193,908 1,689,881 172,120 1,472,483 4,089 34,217
Redemptions (1,204,413) (10,498,125) (873,716) (7,476,795) (154) (1,285)
------------ ------------ ------------ ------------ ------------ ------------
Net increase 44,835 297,230 10,045,729 85,690,387 2,155,867 17,973,115
CLASS Z:
Subscriptions 49,331,180 428,472,998 100,424,297 857,268,253 89,490,322 756,219,396
Distributions reinvested 2,937,228 25,595,560 3,670,269 31,357,503 3,386,949 28,634,236
Redemptions (38,010,633) (330,983,140) (47,029,601) (401,243,637) (35,810,741) (301,863,222)
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) 14,257,775 123,085,418 57,064,965 487,382,119 57,066,530 482,990,410
(a) Class C shares were initially offered on October 13, 2003.
(b) The Fund changed its fiscal year end from December 31 to August 31.
(c) 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 renamed Class Z shares.
See Accompanying Notes to Financial Statements.
132-133 Spread
STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY____________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
DAILY INCOME COMPANY
----------------------------------------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED
FEBRUARY 29, 2004 AUGUST 31, 2003 (a) DECEMBER 31, 2002
---------------------------- --------------------------- -------------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($)
- ---------------------------------------------------------------------------------------------------------------------------
CLASS Z:
Subscriptions 269,610,706 269,610,706 468,052,097 468,052,097 1,214,530,352 1,214,530,352
Distributions reinvested 1,384,976 1,384,976 4,068,237 4,068,237 14,408,323 14,408,323
Redemptions (419,457,440) (419,457,440) (710,031,351) (710,031,351) (1,346,398,974) (1,346,398,974)
------------- ------------ ------------ ------------ -------------- --------------
Net decrease (148,461,758) (148,461,758) (237,911,017) (237,911,017) (117,460,299) (117,460,299)
(a) The Fund changed its fiscal year end from December 31 to August 31.
See Accompanying Notes to Financial Statements.
134
NOTES TO FINANCIAL STATEMENTS___________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
NOTE 1. ORGANIZATION
The Columbia Funds are registered under the Investment Company Act of 1940 (the
"1940 Act"), as amended, as open-end management investment companies.
Information presented in these financial statements pertains to the following
Funds (individually referred to as a "Fund", collectively referred to as the
"Funds"):
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 diversified except for the Columbia Real Estate Equity Fund,
Columbia Technology Fund and Columbia Oregon Municipal Bond Fund, which are
non-diversified.
INVESTMENT GOALS
The Columbia Common Stock Fund seeks capital appreciation by investing primarily
in common stocks of large capitalization, well-established companies. The
Columbia Growth Fund seeks capital appreciation by investing in stocks of
companies expected to experience long-term, above average earnings growth. The
Columbia International Stock Fund seeks long-term capital appreciation by
investing in stocks issued by companies from at least three countries outside
the United States. The Columbia Mid Cap Growth Fund seeks significant capital
appreciation by investing in stocks of companies with a market capitalization,
at the time of initial purchase, equal to or less than the largest stock in the
Russell MidCap Index. The Columbia Small Cap Growth Fund seeks capital
appreciation by investing in stocks of companies with a market capitalization,
at the time of initial purchase, equal to or less than the largest stock in the
S&P SmallCap 600 Index. The Columbia Real Estate Equity Fund seeks capital
appreciation and above-average income by investing in stocks of companies
principally engaged in the real estate industry, including real estate
investment trusts (REITs). The Columbia Technology Fund seeks capital
appreciation by investing in stocks of technology companies that may benefit
from technological improvements, advancements or developments. The Columbia
Strategic Investor Fund seeks long-term growth of capital by using a "value"
approach to investing primarily in common stocks. The Columbia Balanced Fund
seeks high total return by investing in common stocks and debt securities. The
Columbia Short Term Bond Fund seeks a high level of current income consistent
with a high degree of principal stability by investing primarily in short-term,
investment-grade, fixed income securities. The Columbia Fixed Income Securities
Fund seeks a high level of income by investing in a broad range of debt
securities with intermediate to long-term maturities. The Columbia National
Municipal Bond Fund seeks a high level of income exempt from federal income tax
by investing primarily in municipal securities issued by state and local
governments, their agencies and authorities, as well as the District of Columbia
and U.S. territories and possessions. The Columbia Oregon Municipal Bond Fund
seeks a high level of income exempt from federal and Oregon income tax by
investing primarily in municipal securities issued by the state of Oregon. The
Columbia High Yield Fund seeks a high level of income, with capital appreciation
as a secondary goal, by investing in non-investment-grade, corporate debt
securities. The Columbia Daily Income Company seeks a high level of income
consistent with the maintenance of liquidity and the preservation of capital by
investing primarily in high quality money market securities.
FUND SHARES
Each Fund may issue one billion shares. 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 five
classes of shares: Class A, Class B, Class C, 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 six classes of shares: Class A, Class B,
Class C, Class D, Class G and Class Z. The Columbia Mid Cap Growth Fund
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FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
and Columbia Short Term Bond Fund offer seven classes of shares: Class A, Class
B, Class C, Class D, Class G, Class T and Class Z. The Class C shares commenced
operations effective October 13, 2003 for all Funds except the Columbia Small
Cap Growth Fund and Columbia Daily Income Company. Prior to November 1, 2002,
each Fund was single class, which were subsequently renamed Class Z shares. Each
share class has its own expense structure.
Class A and Class T shares are subject to a front-end sales charge based on the
amount of initial investment. Class A and Class T shares purchased without an
initial sales charge in accounts aggregating $1 million to $25 million at the
time of purchase are subject to a 1.00% contingent deferred sales charge
("CDSC") on shares sold within eighteen months of the time of purchase. Class B
and Class G 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 G shares will convert to Class T shares in eight
years after purchase. Class C shares are subject to a 1.00% CDSC on shares sold
within one year after purchase. Class D shares are subject to a front-end sales
charge of 1.00% and a 1.00% CDSC on shares sold within one year after purchase.
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, the Class D sales charge of 1.00% is waived
effective October 13, 2003. 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, 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.
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 Funds in the preparation of their 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.
Debt securities generally are valued by a pricing service approved by the Funds'
Board of Directors, based upon market transactions for normal,
institutional-size trading units of similar securities. The services may use
various pricing techniques which take into account appropriate factors such as
yield, quality, coupon rate, maturity, type of issue, trading characteristics
and other data, as well as broker quotes. Debt securities for which quotations
are readily available are valued at an over-the-counter or exchange bid
quotation. Certain debt securities, which tend to be more thinly traded and of
lesser quality, are priced based on fundamental analysis of the financial
condition of the issuer and the estimated value of any collateral. Valuations
developed through pricing techniques may vary from the actual amounts realized
upon sale of the securities, and the potential variation may be greater for
those securities valued using fundamental analysis.
Short-term debt 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.
Futures contracts are valued at the settlement price established each day by the
board of trade or exchange on which they are traded.
Foreign securities are generally valued at the closing price on the foreign
exchange or market on which they trade. If any foreign share prices are not
readily available as a result of limited share activity, the
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FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
securities are valued at the last sale price of the local shares in the
principal market in which such securities are normally traded.
Generally, trading in foreign securities is substantially completed each day at
various times prior to the close of the New York Stock Exchange ("NYSE"). The
values of such securities used in computing the net asset value of the Funds'
shares are determined as of such times. Foreign currency exchange rates are
generally determined at 2:00 p.m. Eastern (U.S.) time. Occasionally, events
affecting the values of such foreign 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 NYSE, which would not be reflected in the
computation of the Funds' net asset value. If events materially affecting the
values of such foreign securities occur and it is determined that market
quotations are not readily available, then these foreign securities will be
valued at their fair value using procedures approved by the Board of Directors.
Investments for which market quotations are not readily available, or quotations
which management believes are not appropriate, are valued at fair value under
procedures approved by the Board of Directors.
Securities in the Columbia Daily Income Company are valued utilizing the
amortized cost valuation method permitted in accordance with Rule 2a-7 under the
1940 Act provided certain conditions are met. This method involves valuing a
portfolio security initially at its cost and thereafter assuming a constant
amortization to maturity of any discount or premium.
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.
FUTURES CONTRACTS
Certain Funds may invest in municipal and U.S. Treasury futures contracts. The
Funds will invest in these instruments to hedge against the effects of changes
in the value of portfolio securities due to anticipated changes in interest
rates and/or market conditions, for duration management, or when the
transactions are economically appropriate to the reduction of risk inherent in
the management of the Funds and not for trading purposes. The use of futures
contracts involves certain risks, which include: (1) imperfect correlation
between the price movement of the instruments and the underlying securities, (2)
inability to close out positions due to differing trading hours, or the
temporary absence of a liquid market, for either the instrument or the
underlying securities, or (3) an inaccurate prediction by Columbia Management
Advisors, Inc. of the future direction of interest rates. Any of these risks may
involve amounts exceeding the variation margin recorded in the Funds' Statement
of Assets and Liabilities at any given time.
Upon entering into a futures contract, the Funds deposit cash or securities with
the broker in an amount sufficient to meet the initial margin requirement.
Subsequent payments are made or received by the Funds equal to the daily change
in the contract value and are recorded as variation margin payable or receivable
and offset in unrealized gains or losses. The Funds also identify portfolio
securities as segregated with the custodian in a separate account in an amount
equal to the futures contract. The Funds recognize a realized gain or loss when
the contract is closed or expires.
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
Forward foreign currency exchange contracts are agreements to exchange one
currency for another at a future date at a specified price. These contracts are
used to minimize the exposure to foreign exchange rate fluctuations during the
period between trade and settlement date of the contracts. Certain Funds may
utilize forward foreign currency exchange contracts in connection with the
settlement of purchases and sales of securities. Certain Funds may also enter
into these contracts to hedge certain other foreign currency denominated assets.
Contracts to buy generally are used to acquire exposure to foreign currencies,
while contracts to sell are used to hedge the Funds' investments against
currency fluctuations. Forward currency contracts are valued daily at the
current exchange rate of the underlying currency, resulting in unrealized gains
(losses) which become realized at the time the foreign currency contracts are
closed or mature. Realized and unrealized gains
137
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FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
(losses) arising from such transactions are included in net realized and
unrealized gains (losses) on foreign currency transactions. The use of forward
currency contracts does not eliminate fluctuations in the prices of the Funds'
portfolio securities. While the maximum potential loss from such contracts is
the aggregate face value in U.S. dollars at the time the contract was opened,
exposure is typically limited to the change in value of the contract (in U.S.
dollars) over the period it remains open. The Funds could also be exposed to
risk if the counterparties of the contracts are unable to fulfill the terms of
the contracts.
REPURCHASE AGREEMENTS
Each Fund may engage in repurchase agreement transactions with institutions that
the Funds' investment advisor has determined are creditworthy. The Funds,
through their custodian, receive 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 each 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 Funds seek to assert their rights.
DELAYED DELIVERY SECURITIES
Certain Funds may trade securities on other than normal settlement terms,
including securities purchased or sold on a "when-issued" basis. This may
increase the risk if the other party to the transaction fails to deliver and
causes the Funds to subsequently invest at less advantageous prices. The Funds
identify cash or liquid portfolio securities as segregated with the custodian in
an amount equal to the delayed delivery commitment.
INCOME RECOGNITION
Interest income is recorded on the accrual basis. Premium and discount are
amortized and accreted, respectively, on all debt securities. Corporate actions
and dividend income are recorded on the ex-date, except for certain foreign
securities which are recorded as soon after ex-date as the Funds become aware of
such, net of non-reclaimable tax withholdings. Awards from class action
litigation are recorded as a reduction of cost if the Funds still own the
applicable securities on the payment date. If the Funds no longer own the
applicable securities, the proceeds are recorded as realized gains.
The Columbia Real Estate Equity Fund estimates components of distributions from
REITs. Distributions received in excess of income are recorded as a reduction of
the cost of the related investments.
FOREIGN CURRENCY TRANSACTIONS
The values of all assets and liabilities quoted in foreign currencies are
translated into U.S. dollars at that day's exchange rates. Net realized and
unrealized gains (losses) on foreign currency transactions include gains
(losses) arising from the fluctuation in exchange rates between trade and
settlement dates on securities transactions, gains (losses) arising from the
disposition of foreign currency and currency gains (losses) between the accrual
and payment dates on dividends, interest income and foreign withholding taxes.
For financial statement purposes, the Funds do not distinguish that portion of
gains (losses) on investments which is due to changes in foreign exchange rates
from that which is due to changes in market prices of the investments. Such
fluctuations are included with the net realized and unrealized gains (losses) on
investments.
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 a Fund on a daily basis for purposes of determining
the net asset value of each class. Income and expenses are allocated to each
class based on the settled shares method, while realized and unrealized gains
(losses) are allocated based on the relative net assets of each class for 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. For all other Funds,
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FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
income and 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 a Fund, based on the relative net assets of each
class.
FEDERAL INCOME TAX STATUS
Each 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, each Fund will not be subject to federal
excise tax. Therefore, no federal income or excise tax provision is recorded.
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 accrue for such
foreign taxes on net realized and unrealized gains at the appropriate rate for
each jurisdiction.
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 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.
139
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FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
NOTE 3. FEDERAL TAX INFORMATION
The tax character of distributions paid during the period ended August 31, 2003
was as follows:
PERIOD ENDED AUGUST 31, 2003
----------------------------------------------------
LONG-TERM
TAX-EXEMPT ORDINARY CAPITAL
INCOME INCOME 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
The tax character of distributions paid during the year ended December 31, 2002
was as follows:
YEAR ENDED DECEMBER 31, 2002
------------------------------------------------------------------
LONG-TERM
TAX-EXEMPT ORDINARY CAPITAL TAX RETURN
INCOME INCOME 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
Unrealized appreciation and depreciation at February 29, 2004, based on cost of
investments for federal income tax purposes, excluding any unrealized
appreciation and depreciation from changes in the value of assets and
liabilities resulting from changes in exchange rates, was:
UNREALIZED UNREALIZED NET UNREALIZED
APPRECIATION DEPRECIATION APPRECIATION
--------------------------------------------
Columbia Common Stock Fund ........... $ 82,552,143 $ (2,413,941) $ 80,138,202
Columbia Growth Fund ................. 212,022,607 (9,079,285) 202,943,322
Columbia International Stock Fund .... 94,055,101 (6,151,379) 87,903,722
Columbia Mid Cap Growth Fund ......... 231,115,046 (14,978,891) 216,136,155
Columbia Small Cap Growth Fund ....... 168,154,438 (8,108,956) 160,045,482
Columbia Real Estate Equity Fund ..... 340,381,142 (3,533,799) 336,847,343
Columbia Technology Fund ............. 6,025,983 (1,092,430) 4,933,553
Columbia Strategic Investor Fund ..... 68,049,140 (1,699,262) 66,349,878
Columbia Balanced Fund ............... 85,075,872 (3,067,074) 82,008,798
Columbia Short Term Bond Fund ........ 6,141,418 (784,808) 5,356,610
Columbia Fixed Income Securities Fund. 13,971,186 (1,121,869) 12,849,317
Columbia National Municipal Bond Fund. 1,017,190 (373) 1,016,817
Columbia Oregon Municipal Bond Fund .. 33,599,558 (2,916,484) 30,683,074
Columbia High Yield Fund ............. 64,119,174 (3,345,003) 60,774,171
140
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FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
The following capital loss carryforwards, determined as of August 31, 2003, may
be 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* ..... -- -- -- -- -- -- -- --
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, 2003.
Of the capital loss carryforwards attributable to Columbia Growth Fund,
$30,564,918 ($23,087,439 expiring 8/31/07 and $7,477,479 expiring 8/31/08) was
obtained upon the Columbia Growth Fund's merger with Galaxy Large Cap Growth
Fund (See Note 11).
Of the capital loss carryforwards attributable to Columbia International Stock
Fund, $9,124,064 ($7,196,259 expiring 8/31/07 and $1,927,805 expiring 8/31/08)
and $4,725,563 ($194,260 expiring 8/31/07, $3,871,712 expiring 8/31/08 and
$659,591 expiring 8/31/09) were obtained upon the Columbia International Stock
Fund's merger with Liberty Newport International Equity Fund and Stein Roe
International Fund, respectively (see Note 11).
Of the capital loss carryforwards attributable to Columbia Mid Cap Growth Fund,
$9,732,198 ($927,932 expiring 8/31/07, $7,427,424 expiring 8/31/08 and
$1,376,842 expiring 8/31/09), $39,492,613 ($5,340,814 expiring 8/31/07,
$22,105,946 expiring 8/31/08 and $12,045,853 expiring 8/31/09) and
141
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FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
$4,415,697 ($2,971,232 expiring 8/31/07, $938,652 expiring 8/31/08 and $505,813
expiring 8/31/09) were obtained upon the Columbia Mid Cap Growth Fund's merger
with Liberty Midcap Growth Fund, Galaxy Growth II Fund and Stein Roe Capital
Opportunities Fund, respectively (See Note 11).
Of the capital loss carryforwards attributable to Columbia Strategic Investor
Fund, $1,968,809 ($1,331,685 expiring 8/31/07 and $637,124 expiring 8/31/08) and
$252,710 ($100,306 expiring 8/31/07 and $152,404 expiring 8/31/08) were obtained
upon the Columbia Strategic Investor Fund's merger with Liberty Contrarian Fund
and Liberty Contrarian Equity Fund, respectively (See Note 11).
Of the capital loss carryforwards attributable to Columbia Short Term Bond Fund,
$2,070,780 ($450,166 expiring 8/31/05, $517,428 expiring 8/31/06 and $1,103,188
expiring 8/31/08) was obtained upon the Columbia Short Term Bond Fund's merger
with Galaxy Short Term Bond Fund (See Note 11).
NOTE 4. FEES AND COMPENSATION PAID TO AFFILIATES
INVESTMENT ADVISORY FEE
Columbia Management Advisors, Inc. ("Columbia") is the investment advisor to the
Funds. Prior to April 1, 2004, Columbia was an indirect, wholly owned subsidiary
of FleetBoston Financial Corporation ("FleetBoston"). Effective April 1, 2004,
FleetBoston was acquired by Bank of America Corporation ("BOA"), see Note 12.
Columbia provides administrative and other services. Columbia receives a monthly
investment advisory fee based on each Fund's average daily net assets at the
following annual rates:
FEE
RATE
-----
Columbia Common Stock Fund 0.600%
Columbia Small Cap Growth Fund 1.000%
Columbia Real Estate Equity Fund 0.750%
Columbia Technology Fund 1.000%
Columbia Strategic Investor Fund 0.750%
Columbia Balanced Fund 0.500%
Columbia Short Term Bond Fund 0.500%
Columbia Fixed Income Securities Fund 0.500%
Columbia National Municipal Bond Fund 0.500%
Columbia Oregon Municipal Bond Fund 0.500%
Columbia High Yield Fund 0.600%
FEES ON FEES ON FEES ON FEES ON
AVERAGE AVERAGE AVERAGE AVERAGE
NET ASSETS NET ASSETS NET ASSETS NET ASSETS
FIRST $200 NEXT $300 NEXT $500 OVER $1
MILLION MILLION MILLION BILLION
---------- ---------- ---------- ----------
Columbia
Growth Fund 0.750% 0.625% 0.500% 0.500%
Columbia
International
Stock Fund 1.000% 1.000% 0.950% 0.900%
Columbia
Mid Cap
Growth Fund 1.000% 1.000% 0.750% 0.750%
Columbia
Daily Income
Company 0.500% 0.500% 0.450% 0.400%
For the six months ended February 29, 2004, the annualized effective investment
advisory fee rates for the Columbia Growth Fund, Columbia International Stock
Fund, Columbia Mid Cap Growth Fund and Columbia Daily Income Company were 0.59%,
0.96%, 0.87% and 0.48%, respectively.
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 those functions to State Street Corporation ("State Street"). Columbia pays
the total fees collected to State Street under the Outsourcing Agreement.
Effective November 1, 2003, under its pricing, bookkeeping and fund
administration agreement with the Funds, Columbia receives from each Fund an
annual flat financial accounting fee of $25,000, an annual flat financial
reporting fee of $19,565 and a monthly financial accounting fee at the annual
rate of 0.02% of the average daily net assets of each Fund. The fee for a Fund
in any year will not exceed $150,000.
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Prior to November 1, 2003, Columbia was entitled to receive a monthly pricing
and bookkeeping fee at the annual rate of 0.01% of the average daily net assets
of each Fund. The fee for a Fund in any year was not less than $25,000 and did
not exceed $150,000.
For the six months ended February 29, 2004, the annualized effective pricing and
bookkeeping fee rates for the Funds were as follows:
Columbia Common Stock Fund 0.031%
Columbia Growth Fund 0.017%
Columbia International Stock Fund 0.026%
Columbia Mid Cap Growth Fund 0.014%
Columbia Small Cap Growth Fund 0.021%
Columbia Real Estate Equity Fund 0.016%
Columbia Technology Fund 0.100%
Columbia Strategic Investor Fund 0.031%
Columbia Balanced Fund 0.029%
Columbia Short Term Bond Fund 0.035%
Columbia Fixed Income Securities Fund 0.033%
Columbia National Municipal Bond Fund 0.352%
Columbia Oregon Municipal Bond Fund 0.039%
Columbia High Yield Fund 0.011%
Columbia Daily Income Company 0.019%
TRANSFER AGENT FEE
Columbia Funds Services, Inc. (the "Transfer Agent"), formerly Liberty Funds
Services, Inc., an indirect, wholly owned subsidiary of BOA, provides
shareholder services to the Funds. For such services, the Transfer Agent
receives a fee per open account, in addition to reimbursement for certain
out-of-pocket expenses. The annual charges per open account for the transfer
fees are as follows:
PER OPEN
ACCOUNT
FEE RATE
--------
Columbia Common Stock Fund $ 28.00
Columbia Growth Fund $ 28.00
Columbia International Stock Fund $ 28.00
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
Prior to November 1, 2003, the Transfer Agent was entitled to receive a transfer
agent fee for all Funds' Class Z shares, with the exception of Columbia National
Municipal Bond Fund, based on the number of shareholder accounts or a minimum of
$1,500 per month. Columbia National Municipal Bond Fund was not subject to the
monthly $1,500 fee minimum. For Class A, Class B, Class D, Class G and Class T
shares, the Transfer Agent was entitled to receive a monthly fee at the lower
of: 1) the monthly fee for Class Z shares described above 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. The Transfer Agent was also entitled to receive reimbursement for
certain out-of-pocket expenses.
Effective October 13, 2003, Liberty Funds Services, Inc. changed its name to
Columbia Funds Services, Inc.
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FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
UNDERWRITING DISCOUNTS, SERVICE AND DISTRIBUTION FEES
Columbia Funds Distributor, Inc. (the "Distributor"), an indirect, wholly owned
subsidiary of BOA, is the principal underwriter of the Funds. Prior to October
13, 2003, Columbia Funds Distributor, Inc. was known as Liberty Funds
Distributor, Inc. For the six months ended February 29, 2004, the Distributor
has retained net underwriting discounts and CDSC fees as follows:
FRONT-END
SALES CHARGE CONTINGENT DEFERRED SALES CHARGE(CDSC)
------------------ ---------------------------------------------------------------
CLASS A CLASS T CLASS A CLASS B CLASS C CLASS D CLASS G CLASS T
------- ------- ------- ------- ------- ------- ------- -------
Columbia
Common Stock Fund .............. $ 1,332 $ -- $ -- $ 903 $ 162 $ -- $ -- $ --
Columbia Growth Fund ........... 3,518 -- 9 824 -- 290 11,501 --
Columbia
International Stock Fund ....... 4,802 -- 13 8,454 120 26 -- --
Columbia
Mid Cap Growth Fund ............ 4,988 95 -- 4,334 48 112 1,523 --
Columbia
Real Estate Equity Fund ........ 16,162 -- 25,000 10,173 44 1,268 -- --
Columbia
Technology Fund ................ 2,354 -- -- 674 -- 250 -- --
Columbia
Strategic Investor Fund ........ 15,783 -- 487 5,731 34 -- -- --
Columbia Balanced Fund ......... 2,868 -- -- 6,289 -- 56 -- --
Columbia
Short Term Bond Fund ........... 16,250 -- 17,993 76,704 57 13,883 2,079 --
Columbia Fixed Income
Securities Fund ................ 3,535 -- 728 11,674 -- 1,371 -- --
Columbia National
Municipal Bond Fund ............ 1,505 -- -- 778 -- 39 -- --
Columbia Oregon
Municipal Bond Fund ............ 1,201 -- -- 1,379 -- 819 -- --
Columbia High Yield Fund ....... 69,096 -- 50,037 116,184 351 53,242 -- --
144
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FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
The Funds have adopted a 12b-1 plan (the "Plan") which requires the payment of a
monthly service and distribution fee to the Distributor based on the average
daily net assets of each Fund at the following annual rates:
DISTRIBUTION FEE
-------------------------------------------------------
CLASS A(a) CLASS B CLASS C CLASS D CLASS G
---------- ------- ------- ------- -------
Columbia Common Stock Fund ............. 0.10% 0.75% 0.75% 0.75% --
Columbia Growth Fund ................... 0.10% 0.75% 0.75% 0.75% 0.65%(b)
Columbia International Stock Fund ...... -- 0.75% 0.75% 0.75% --
Columbia Mid Cap Growth Fund ........... 0.10% 0.75% 0.75% 0.75% 0.65%(b)
Columbia Real Estate Equity Fund ....... 0.10% 0.75% 0.75% 0.75% --
Columbia Technology Fund ............... 0.10% 0.75% 0.75% 0.75% --
Columbia Strategic Investor Fund ....... -- 0.75% 0.75% 0.75% --
Columbia Balanced Fund ................. 0.10% 0.75% 0.75% 0.75% --
Columbia Short Term Bond Fund .......... 0.10% 0.75% 0.75% 0.75% 0.65%(c)
Columbia Fixed Income Securities Fund .. 0.10% 0.75% 0.75% 0.75% --
Columbia National Municipal Bond Fund .. 0.10% 0.75% 0.75% 0.75% --
Columbia Oregon Municipal Bond Fund .... 0.10% 0.75% 0.75% 0.75% --
Columbia High Yield Fund ............... 0.10% 0.75% 0.75% 0.75% --
SERVICE FEE
-------------------------------------------------------
CLASS A(a) CLASS B CLASS C CLASS D CLASS G
---------- ------- ------- ------- -------
Columbia Common Stock Fund ............. 0.25% 0.25% 0.25% 0.25% --
Columbia Growth Fund ................... 0.25% 0.25% 0.25% 0.25% 0.50%(b)
Columbia International Stock Fund ...... 0.25% 0.25% 0.25% 0.25% --
Columbia Mid Cap Growth Fund ........... 0.25% 0.25% 0.25% 0.25% 0.50%(b)
Columbia Real Estate Equity Fund ....... 0.25% 0.25% 0.25% 0.25% --
Columbia Technology Fund ............... 0.25% 0.25% 0.25% 0.25% --
Columbia Strategic Investor Fund ....... 0.25% 0.25% 0.25% 0.25% --
Columbia Balanced Fund ................. 0.25% 0.25% 0.25% 0.25% --
Columbia Short Term Bond Fund .......... 0.25% 0.25% 0.25% 0.25% 0.50%(c)
Columbia Fixed Income Securities Fund .. 0.25% 0.25% 0.25% 0.25% --
Columbia National Municipal Bond Fund .. 0.25% 0.25% 0.25% 0.25% --
Columbia Oregon Municipal Bond Fund .... 0.25% 0.25% 0.25% 0.25% --
Columbia High Yield Fund ............... 0.25% 0.25% 0.25% 0.25% --
(a) The Funds' Board of Directors currently limits payments under the Plan
for Class A shares to 0.25% annually of the Class A shares average daily
net assets.
(b) The Fund's Board of Directors currently limits payments under the Plan
for Class G shares to 0.95% annually of the Class G shares average daily
net assets.
(c) The Fund's Board of Directors currently limits payments under the Plan
for Class G shares to 0.80% annually of the Class G shares average daily
net assets.
145
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FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
The Distributor has voluntarily agreed to waive a portion of the Class C and
Class D distribution and service fees so that combined these fees do not exceed
the annual rates on the average daily net assets of Class C and Class D shares
of each Fund 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 FEES
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 advisors. The annual service fee may
equal up to 0.50% annually 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 and Columbia Short Term Bond Fund do not intend to pay more than
0.30% and 0.15%, respectively, for annual Class T shareholder services fees.
EXPENSE LIMITS AND FEE REIMBURSEMENTS
Columbia has agreed to waive advisory fees and reimburse certain expenses to the
extent that total expenses (exclusive of distribution and service fees,
brokerage commissions, interest, taxes and extraordinary expenses, if any)
exceed 1.65% and 0.65% annually of the average daily net assets for the Columbia
Technology Fund and Columbia National Municipal Bond Fund, respectively. These
arrangements may be revised or discontinued at any time.
Columbia has contractually agreed to reimburse certain expenses of the Columbia
Short Term Bond Fund to the extent that total expenses (exclusive of
distribution and service fees, brokerage commissions, interest, taxes and
extraordinary expenses, if any) exceed 0.66% annually of the Fund's average
daily net assets. Columbia has agreed to maintain the waiver until May 2004.
Prior to November 1, 2003, Columbia voluntarily reimbursed the Columbia Short
Term Bond Fund at the annual rate of 0.75% of the Fund's average daily net
assets. In addition, Columbia or its affiliates have voluntarily agreed to
reimburse class specific transfer agency fees for the Columbia Short Term Bond
Fund to the extent necessary to prevent total annual operating expenses from
exceeding 1.64% and 0.98% for Class G and Class T, respectively. Columbia or its
affiliates have agreed to maintain the waiver until May 24, 2004.
Effective January 1, 2004, Columbia has voluntarily agreed to waive a portion of
its investment advisory fee for the Columbia International Stock Fund at an
annual rate of 0.10% on the Fund's average daily net assets. Columbia, at its
discretion, may revise or discontinue this arrangement any time.
Columbia has agreed to waive a portion of the transfer agent fees for the
Columbia International Stock Fund, Columbia Mid Cap Growth Fund and Columbia
Strategic Investor Fund. Columbia has agreed to maintain this waiver until May
31, 2004. Thereafter, these arrangements may be revised or discontinued by
Columbia at any time.
For the six months ended February 29, 2004, Columbia waived transfer agent fees
for the Funds based on each class' average daily net assets at the following
annual rates:
CLASS A CLASS B CLASS C CLASS D CLASS Z
------- ------- ------- ------- -------
Columbia
International
Stock Fund .............. -- 0.11% 0.29% 0.58% 0.10%
Columbia
Mid Cap
Growth
Fund .................... 0.01% 0.12% 0.09% 0.09% 0.05%
Columbia
Strategic
Investor
Fund .................... -- 0.23% 0.15% 0.15% 0.03%
146
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FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
CUSTODY CREDITS
Each Fund has an agreement with its custodian bank under which custody fees may
be 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.
FEES PAID TO OFFICERS AND DIRECTORS
The Funds pay no compensation to their officers, all of whom are employees of
Columbia or its affiliates.
The Funds' Directors may participate in a deferred compensation plan which may
be terminated at any time. Obligations of the plan will be paid solely out of
the Funds' assets.
NOTE 5. PORTFOLIO INFORMATION
For the six months ended February 29, 2004, the cost of purchases and proceeds
from sales of securities, excluding short-term obligations, were as follows:
U.S. GOVERNMENT OTHER INVESTMENT
SECURITIES SECURITIES
---------------------------- ------------------------------
PURCHASES SALES PURCHASES SALES
------------ ------------ ------------- -------------
Columbia Common Stock Fund ............. $ 1,983,692 $ 2,542,882 $ 364,044,680 $ 431,796,193
Columbia Growth Fund ................... 7,290 13,463,277 713,162,831 748,879,129
Columbia International Stock Fund ...... -- -- 302,091,893 129,850,427
Columbia Mid Cap Growth Fund ........... -- -- 542,769,722 592,608,239
Columbia Small Cap Growth Fund ......... -- -- 516,391,614 439,797,460
Columbia Real Estate Equity Fund ....... -- -- 112,165,509 64,682,361
Columbia Technology Fund ............... -- -- 71,604,616 56,952,508
Columbia Strategic Investor Fund ....... 2,270,981 1,168,472 147,644,355 155,680,259
Columbia Balanced Fund ................. 95,391,606 102,549,532 383,705,734 446,494,944
Columbia Short Term Bond Fund .......... 75,405,868 76,264,050 182,365,191 134,954,548
Columbia Fixed Income Securities Fund .. 317,372,122 390,217,101 62,702,724 127,684,391
Columbia National Municipal Bond Fund .. -- -- 1,402,861 2,885,866
Columbia Oregon Municipal Bond Fund .... -- -- 34,666,451 61,255,089
Columbia High Yield Fund ............... -- -- 450,840,942 219,282,548
NOTE 6. OTHER RELATED PARTY TRANSACTIONS
During the six months ended February 29, 2004, the Columbia Strategic Investor
Fund used Fleet Institutional Services ("FIS"), a wholly owned subsidiary of
FleetBoston, as a broker. Total commissions paid to FIS during the period were
$500.
NOTE 7. 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. Redemption fees, which are retained by the
Fund, are accounted for as an addition to paid in capital and are allocated to
each class proportionately for purposes of determining the net asset value of
each class. Prior to October 9, 2003, redemption fees were recorded as a
component of paid-in capital on Class Z shares. For the six months ended
February 29, 2004, the redemption fees for the Class Z shares of the Columbia
International Stock Fund amounted to $43,624.
NOTE 8. LINE OF CREDIT
The Funds participate in a $100,000,000 uncommitted line of credit along 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. For the six
months ended February 29, 2004, the average daily loan balance outstanding on
147
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
days where borrowings existed for the Columbia Common Stock Fund was $17,313,000
at a weighted average interest rate of 1.50%. For the six months ended February
29, 2004, the Funds, other than the Columbia Common Stock Fund, did not borrow
under these arrangements.
NOTE 9. DISCLOSURE OF SIGNIFICANT RISKS AND CONTINGENCIES
FOREIGN SECURITIES
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. In addition, the liquidity of foreign
securities may be more limited than that of domestic securities.
GEOGRAPHIC CONCENTRATION
The Columbia National Municipal Bond Fund has greater than 5% of its total
investments at February 29, 2004 invested in debt obligations issued by the
states of Illinois, Indiana, Michigan, Oregon, Washington. Also on this date,
the Columbia Oregon Municipal Bond Fund has greater than 5% of its total
investments invested in debt obligations issued by the state of Oregon. The
Funds are also invested in each state's respective political subdivisions,
agencies and public authorities to obtain funds for various purposes. These
Funds are more susceptible to economic and political factors adversely affecting
issuers of each respective state's specific municipal securities than are
municipal bond funds that are not concentrated to the same extent in these
issuers.
HIGH-YIELD SECURITIES
Investing in high-yield securities may involve greater credit risk and
considerations not typically associated with investing in U.S. Government bonds
and other higher quality fixed income securities. These securities are
non-investment grade securities, often referred to as "junk bonds." Economic
downturns may disrupt the high yield market and impair the ability of issuers to
repay principal and interest. Also, an increase in interest rates would likely
have an adverse impact on the value of such obligations. Moreover, high-yield
securities may be less liquid due to the extent that there is no established
retail secondary market and because of a decline in the value of such
securities.
INDUSTRY FOCUS
The Funds may focus their investments in certain industries, subjecting them to
greater risk than funds that are 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.
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. If either
Columbia or the Distributor is unsuccessful in its defense of these proceedings,
it could be barred from serving as an investment advisor or distributor for any
investment company registered under the Investment Company Act of 1940, as
amended (a "registered investment company"). Such results could prevent
Columbia, the Distributor or any company that is an affiliated person of
Columbia and the Distributor from serving as an investment advisor or
distributor for any registered investment company, including your fund. Your
fund has been informed by Columbia and the Distributor that, if these results
occur, they will seek exemptive relief from the SEC to permit them to continue
to serve as your fund's investment advisor and distributor. There is no
assurance that such exemptive relief will be granted. On March 15, 2004,
Columbia and the Distributor entered into agreements in principle with the SEC
148
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FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
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 10. COMPARABILITY OF FINANCIAL STATEMENTS
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.
NOTE 11. BUSINESS COMBINATIONS AND MERGERS
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 CAP
SHARES GROWTH FUND UNREALIZED
ISSUED RECEIVED DEPRECIATION 1
--------- ------------- --------------
4,943,168 $ 108,315,198 $ (8,049,749)
NET ASSETS NET ASSETS
NET ASSETS OF THE GALAXY OF THE
OF THE LARGE CAP COLUMBIA
COLUMBIA GROWTH FUND GROWTH FUND
GROWTH 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 Equity Fund ("LNIEF") merged into the
Columbia International Stock Fund as follows:
NET ASSETS
OF SRIF
SHARES 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
NET ASSETS OF THE
OF THE NET ASSETS COLUMBIA
COLUMBIA OF SRIF INTERNATIONAL
INTERNATIONAL 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,
GGIIF
SHARES AND SRCOF UNREALIZED
ISSUED RECEIVED APPRECIATION 1
---------- ------------ --------------
LMCGF 1,926,436 $ 29,609,516 $ 1,312,196
GGIIF 3,693,522 56,786,294 419,666
SRCOF 13,391,313 205,776,298 4,912,798
NET ASSETS
NET ASSETS NET ASSETS OF THE
OF THE OF LMCGF, COLUMBIA
COLUMBIA GGIIF MID CAP
MID CAP AND SRCOF GROWTH FUND
GROWTH FUND IMMEDIATELY IMMEDIATELY
PRIOR TO PRIOR TO AFTER
COMBINATION COMBINATION COMBINATION
------------ ------------ ------------
$588,307,694 $292,172,108 $880,479,802
149
________________________________________________________________________________
FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
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 OF THE
OF THE NET ASSETS COLUMBIA
COLUMBIA OF LCF STRATEGIC
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 NET ASSETS OF THE
OF THE OF THE GALAXY COLUMBIA
COLUMBIA SHORT TERM SHORT TERM
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.
NOTE 12. SUBSEQUENT EVENT
On April 1, 2004, FleetBoston, including the Funds' investment advisor and
distributor, was acquired by BOA. 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.
150
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151
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA COMMON STOCK FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS A SHARES 2004 2003 (a) 2002 (b)
- -------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $17.22 $14.91 $15.09
----------- ----------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (c) 0.02 0.01 --(d)
Net realized and unrealized gain (loss) on investments 2.20 2.30 (0.11)
----------- ----------- -----------
Total from investment operations 2.22 2.31 (0.11)
- -------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.03) -- (0.07)
- -------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $19.41 $17.22 $14.91
Total return (e)(f) 12.90% 15.49% (0.71)%
- -------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $729 $223 $32
Ratio of expenses to average net assets (g)(h) 1.19% 1.40% 1.32%
Ratio of net investment income (loss) to average net assets (g)(h) 0.21% 0.08% (0.03)%
Portfolio turnover rate 87%(f) 102%(f) 107%
- -------------------------------------------------------------------------------------------------------------------------
(a) The Fund 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.
(UNAUDITED)
SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS B SHARES 2004 2003 (a) 2002 (b)
- --------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $17.12 $14.91 $15.09
- ------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) (0.06) (0.09) (0.01)
Net realized and unrealized gain (loss) on investments 2.19 2.30 (0.12)
----------- ----------- -----------
Total from investment operations 2.13 2.21 (0.13)
- ------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income -- -- (0.05)
- ------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $19.25 $17.12 $14.91
Total return (d)(e) 12.44% 14.82% (0.84)%
- ------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $1,927 $620 $109
Ratio of expenses to average net assets (f)(g) 1.99% 2.36% 2.07%
Ratio of net investment loss to average net assets (f)(g) (0.66)% (0.90)% (0.78)%
Portfolio turnover rate 87%(e) 102%(e) 107%
- ------------------------------------------------------------------------------------------------------------------------
(a) The Fund 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.
152
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA COMMON STOCK FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
PERIOD ENDED
FEBRUARY 29,
CLASS C SHARES 2004 (a)
- -----------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ $17.61
- -----------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b) (0.05)
Net realized and unrealized gain on investments 1.69
----------
Total from investment operations 1.64
- -----------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $19.25
Total return (c)(d) 9.31%
- -----------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $48
Ratio of expenses to average net assets (e)(f) 1.91%
Ratio of net investment loss to average net assets (e)(f) (0.66)%
Portfolio turnover rate 87%(d)
- -----------------------------------------------------------------------
(a) Class C shares were initially offered on October 13, 2003. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming no contingent deferred sales
charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
(UNAUDITED)
SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS D SHARES 2004 2003 (a) 2002 (b)
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $17.11 $14.92 $15.09
- -------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) (0.05) (0.12) (0.01)
Net realized and unrealized gain (loss) on investments 2.18 2.31 (0.11)
------------ ------------ ------------
Total from investment operations 2.13 2.19 (0.12)
- -------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income -- -- (0.05)
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $19.24 $17.11 $14.92
Total return (d)(e) 12.45% 14.68% (0.77)%
- -------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $152 $112 $30
Ratio of expenses to average net assets (f)(g) 1.91% 2.61% 2.07%
Ratio of net investment loss to average net assets (f)(g) (0.52)% (1.09)% (0.78)%
Portfolio turnover rate 87%(e) 102%(e) 107%
- -------------------------------------------------------------------------------------------------------------------
(a) The Fund 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 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.
153
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA COMMON STOCK FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED YEAR ENDED DECEMBER 31,
FEBRUARY 29, AUGUST 31, -------------------------------------------------------------
Class Z Shares 2004 2003 (a) 2002 (b) 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $17.26 $14.91 $19.97 $24.34 $28.90 $24.40 $22.02
- ----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.04(c) 0.06(c) 0.07(c) 0.07 (0.01) 0.03 0.09
Net realized and unrealized gain
(loss) on investments 2.21 2.29 (5.05) (4.35) (1.54) 6.25 5.68
--------- --------- --------- --------- --------- --------- ---------
Total from investment operations 2.25 2.35 (4.98) (4.28) (1.55) 6.28 5.77
- ----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.10) -- (0.08) (0.07) -- (0.03) (0.13)
From net realized gains -- -- -- (0.02) (3.01) (1.75) (3.26)
--------- --------- --------- --------- --------- --------- ---------
Total distributions (0.10) -- (0.08) (0.09) (3.01) (1.78) (3.39)
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $19.41 $17.26 $14.91 $19.97 $24.34 $28.90 $24.40
Total return (d) 13.09%(e) 15.76%(e) (24.92)% (17.60)% (5.73)% 25.76% 26.28%
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $412,726 $427,669 $416,638 $681,397 $895,134 $959,910 $797,147
Ratio of expenses to average
net assets (f) 0.91%(g) 0.94%(g) 0.86% 0.80% 0.75% 0.77% 0.80%
Ratio of net investment income
(loss) to average net assets (f) 0.49%(g) 0.55%(g) 0.43% 0.32% (0.05)% 0.09% 0.56%
Portfolio turnover rate 87%(e) 102%(e) 107% 114% 104% 97% 141%
- ----------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were renamed 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.
154
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA GROWTH FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS A SHARES 2004 2003 (a) 2002 (b)
- -------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $24.61 $20.83 $21.52
- -------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) (0.03) (0.07) --(d)
Net realized and unrealized gain (loss) on investments 2.30 3.85 (0.69)
------------ ------------ ------------
Total from investment operations 2.27 3.78 (0.69)
- -------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $26.88 $24.61 $20.83
Total return (e)(f) 9.22% 18.15% (3.21)%
- -------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $5,340 $4,229 $3,077
Ratio of expenses to average net assets (g)(h) 1.12% 1.33% 1.15%
Ratio of net investment loss to average net assets (g)(h) (0.26)% (0.44)% (0.36)%
Portfolio turnover rate 76%(f) 110%(f) 165%
- -------------------------------------------------------------------------------------------------------------
(a) The Fund 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 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.
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS B SHARES 2004 2003 (a) 2002 (b)
- -------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $24.47 $20.82 $21.52
- -------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) (0.13) (0.19) (0.03)
Net realized and unrealized gain (loss) on investments 2.27 3.84 (0.67)
------------ ------------ ------------
Total from investment operations 2.14 3.65 (0.70)
- -------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $26.61 $24.47 $20.82
Total return (d)(e) 8.75% 17.53% (3.25)%
- -------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $2,086 $793 $114
Ratio of expenses to average net assets (f)(g) 1.90% 2.11% 1.88%
Ratio of net investment loss to average net assets (f)(g) (1.01)% (1.27)% (1.09)%
Portfolio turnover rate 76%(e) 110%(e) 165%
- -------------------------------------------------------------------------------------------------------------
(a) The Fund 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.
155
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA GROWTH FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
PERIOD ENDED
FEBRUARY 29,
CLASS C SHARES 2004 (a)
- -----------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $24.96
- -----------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b) (0.10)
Net realized and unrealized gain on investments 1.69
------------
Total from investment operations 1.59
- -----------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $26.55
Total return (c)(d) 6.37%
- -----------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $98
Ratio of expenses to average net assets (e)(f) 1.83%
Ratio of net investment loss to average net assets (e)(f) (0.94)%
Portfolio turnover rate 76%(d)
- -----------------------------------------------------------------------
(a) Class C shares were initially offered on October 13, 2003. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming no contingent deferred sales
charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS D SHARES 2004 2003 (a) 2002 (b)
- -------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $24.48 $20.82 $21.52
- -------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (c) (0.13) (0.17) (0.02)
Net realized and unrealized gain (loss) on investments 2.29 3.83 (0.68)
------------ ------------ ------------
Total from investment operations 2.16 3.66 (0.70)
- -------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $26.64 $24.48 $20.82
Total return (d)(e) 8.82% 17.58% (3.25)%
- -------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $294 $294 $103
Ratio of expenses to average net assets (f)(g) 1.85% 2.02% 1.88%
Ratio of net investment loss to average net assets (f)(g) (0.99)% (1.15)% (1.09)%
Portfolio turnover rate 76%(e) 110%(e) 165%
- -------------------------------------------------------------------------------------------------------------
(a) The Fund 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 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.
156
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA GROWTH FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS G SHARES 2004 2003 (a) 2002 (b)
- -------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $24.49 $20.83 $21.52
- -------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) (0.12) (0.16) (0.03)
Net realized and unrealized gain (loss) on investments 2.28 3.82 (0.66)
------------ ------------ ------------
Total from investment operations 2.16 3.66 (0.69)
- -------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $26.65 $24.49 $20.83
Total return (d)(e) 8.82% 17.57% (3.21)%
- -------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $15,248 $14,810 $13,705
Ratio of expenses to average net assets (f)(g) 1.79% 2.00% 1.83%
Ratio of net investment loss to average net assets (f)(g) (0.95)% (1.10)% (1.04)%
Portfolio turnover rate 76%(e) 110%(e) 165%
- -------------------------------------------------------------------------------------------------------------
(a) The Fund 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.
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED YEAR ENDED DECEMBER 31,
FEBRUARY 29, AUGUST 31, ---------------------------------------------------------------
CLASS Z SHARES 2004 2003 (a) 2002 (b) 2001 2000 1999 1998
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $24.70 $20.85 $31.35 $40.07 $48.91 $42.51 $34.34
- -----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) --(c)(d) --(c)(d) (0.01)(c) (0.02) (0.08) (0.03) 0.03
Net realized and unrealized
gain (loss) on investments 2.31 3.85 (10.49) (8.55) (3.49) 11.09 10.39
--------- --------- --------- ---------- ---------- ---------- ----------
Total from investment operations 2.31 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 $27.01 $24.70 $20.85 $31.35 $40.07 $48.91 $42.51
Total return (e) 9.35%(f) 18.47%(f) (33.49)% (21.40)% (7.94)% 26.02% 30.34%
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $937,126 $909,611 $811,648 $1,325,844 $1,919,227 $2,160,739 $1,753,024
Ratio of expenses to average
net assets (g) 0.82%(h) 0.88%(h) 0.82% 0.72% 0.65% 0.65% 0.68%
Ratio of net investment income
(loss) to average net assets (g) 0.03%(h) 0.01%(h) (0.03)% (0.07)% (0.18)% (0.07)% 0.21%
Portfolio turnover rate 76%(f) 110%(f) 165% 122% 114% 118% 105%
- -----------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were renamed 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.
157
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA INTERNATIONAL STOCK FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS A SHARES 2004 2003 (a) 2002 (b)
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $11.34 $10.05 $10.04
- ---------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (c) (0.04) 0.04 (0.02)
Net realized and unrealized gain on investments, foreign
currency and foreign capital gains tax 2.43 1.25 0.03
------------ ------------ ------------
Total from investment operations 2.39 1.29 0.01
- ---------------------------------------------------------------------------------------------------------------------
REDEMPTION FEES:
Redemption fees added to paid-in capital --(c)(d) -- --
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $13.73 $11.34 $10.05
Total return (e)(f)(g) 21.08% 12.84% 0.10%
- ---------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $25,812 $21,664 $20,178
Ratio of expenses to average net assets (h)(i) 1.77% 1.90% 1.86%
Ratio of net investment income (loss) to average net assets (h)(i) (0.70)% 0.61% (0.39)%
Waiver (i) 0.04% -- --
Portfolio turnover rate 33%(f) 43%(f) 96%
- ---------------------------------------------------------------------------------------------------------------------
(a) The Fund 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 charge or
contingent deferred sales charge.
(f) Not annualized.
(g) Had the Investment Advisor not waived 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.
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS B SHARES 2004 2003 (a) 2002 (b)
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $11.23 $10.02 $10.04
- ----------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) (0.09) (0.03) (0.05)
Net realized and unrealized gain on investments, foreign
currency and foreign capital gains tax 2.40 1.24 0.03
------------ ------------ ------------
Total from investment operations 2.31 1.21 (0.02)
- ----------------------------------------------------------------------------------------------------------------------
REDEMPTION FEES:
Redemption fees added to paid-in capital --(c)(d) -- --
- ----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $13.54 $11.23 $10.02
Total return (e)(f)(g) 20.57% 12.08% (0.20)%
- ----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $12,050 $10,316 $10,920
Ratio of expenses to average net assets (h)(i) 2.59% 2.98% 3.64%
Ratio of net investment loss to average net assets (h)(i) (1.51)% (0.47)% (2.17)%
Waiver (i) 0.15% 0.11% 0.11%
Portfolio turnover rate 33%(g) 43%(g) 96%
- ----------------------------------------------------------------------------------------------------------------------
(a) The Fund 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) Rounds to less than $0.01 per share.
(e) Total return at net asset value assuming no contingent deferred sales
charge.
(f) Had the Investment 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.
158
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA INTERNATIONAL STOCK FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
PERIOD ENDED
FEBRUARY 29,
CLASS C SHARES 2004 (a)
- -----------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $12.27
- -----------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b) (0.05)
Net realized and unrealized gain on investments, foreign
currency and foreign capital gains tax 1.36
------------
Total from investment operations 1.31
- -----------------------------------------------------------------------
REDEMPTION FEES:
Redemption fees added to paid-in capital --(b)(c)
- -----------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $13.58
Total return (d)(e)(f) 10.68%
- -----------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $301
Ratio of expenses to average net assets (g)(h) 2.05%
Ratio of net investment loss to average net assets (g)(h) (1.05)%
Waiver (h) 0.35%
Portfolio turnover rate 33%(f)
- -----------------------------------------------------------------------
(a) Class C shares were initially offered on October 13, 2003. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Rounds to less than $0.01 per share.
(d) Total return at net asset value assuming no contingent deferred sales
charge.
(e) Had the Investment 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.
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS D SHARES 2004 2003 (a) 2002 (b)
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $11.27 $10.02 $10.04
- ---------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (c) (0.06) --(d) (0.04)
Net realized and unrealized gain on investments, foreign
currency and foreign capital gains tax 2.42 1.25 0.02
------------ ------------ ------------
Total from investment operations 2.36 1.25 (0.02)
- ---------------------------------------------------------------------------------------------------------------------
REDEMPTION FEES:
Redemption fees added to paid-in capital --(c)(d) -- --
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $13.63 $11.27 $10.02
Total return (e)(f)(g) 20.94% 12.48% (0.20)%
- ---------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $777 $633 $542
Ratio of expenses to average net assets (h)(i) 2.07% 2.49% 3.48%
Ratio of net investment income (loss) to average net assets (h)(i) (0.99)% 0.02% (2.01)%
Waiver (i) 0.62% 0.75% 0.75%
Portfolio turnover rate 33%(g) 43%(g) 96%
- ---------------------------------------------------------------------------------------------------------------------
(a) The Fund 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 contingent deferred sales
charge.
(f) Had the Investment 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.
159
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA INTERNATIONAL STOCK FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED YEAR ENDED DECEMBER 31,
FEBRUARY 29, AUGUST 31, --------------------------------------------------------
CLASS Z SHARES 2004 2003 (a) 2002 (b) 2001 2000 1999 1998
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $11.40 $10.05 $12.03 $14.77 $22.81 $15.45 $13.70
- ---------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) --(c)(d) 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 2.44 1.27 (1.94) (2.74) (5.17) 9.00 1.76
--------- --------- --------- -------- -------- -------- ---------
Total from investment operations 2.44 1.34 (1.94) (2.73) (5.21) 8.95 1.76
- ---------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.04) -- (0.01) (0.01) -- -- --
From net realized gains -- -- -- -- (2.83) (1.59) (0.01)
Return of capital -- -- (0.03) -- -- -- --
--------- --------- --------- -------- -------- -------- ---------
Total distributions (0.04) -- (0.04) (0.01) (2.83) (1.59) (0.01)
- ---------------------------------------------------------------------------------------------------------------------------------
REDEMPTION FEES:
Redemption fees added to
paid-in capital --(c)(d) 0.01(c) -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $13.80 $11.40 $10.05 $12.03 $14.77 $22.81 $15.45
Total return (e) 21.46%(f)(g) 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) $503,931 $248,718 $143,332 $135,626 $175,316 $239,223 $134,193
Ratio of expenses to
average net assets (h) 1.07%(i) 1.47%(i) 1.49% 1.56% 1.42% 1.48% 1.56%
Ratio of net investment
income (loss) to average
net assets (h) --%(i)(j) 1.03%(i) (0.02)% 0.06% (0.19)% (0.35)% (0.02)%
Waiver 0.14%(i) 0.12%(i) 0.12% -- -- -- --
Portfolio turnover rate 33%(g) 43%(g) 96% 130% 112% 94% 74%
- ---------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were renamed 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 Investment 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) Rounds to less than 0.01%.
160
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA MID CAP GROWTH FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS A SHARES 2004 2003 (a) 2002 (b)
- -------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $18.09 $14.77 $15.15
- -------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) (0.11) (0.14) (0.02)
Net realized and unrealized gain (loss) on investments 1.55 3.46 (0.36)
------------ ------------ ------------
Total from investment operations 1.44 3.32 (0.38)
- -------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $19.53 $18.09 $14.77
Total return (d)(e)(f) 7.96% 22.48% (2.51)%
- -------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $6,500 $4,525 $1,180
Ratio of expenses to average net assets (g)(h) 1.50% 1.60% 1.49%
Ratio of net investment loss to average net assets (g)(h) (1.20)% (1.31)% (1.22)%
Waiver (h) 0.01% 0.01% 0.01%
Portfolio turnover rate 53%(f) 78%(f) 88%
- -------------------------------------------------------------------------------------------------------------
(a) The Fund 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 Investment 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.
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS B SHARES 2004 2003 (a) 2002 (b)
- -------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $17.98 $14.76 $15.15
- -------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) (0.19) (0.22) (0.04)
Net realized and unrealized gain (loss) on investments 1.55 3.44 (0.35)
------------ ------------ ------------
Total from investment operations 1.36 3.22 (0.39)
- -------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $19.34 $17.98 $14.76
Total return (d)(e)(f) 7.56% 21.82% (2.57)%
- -------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $5,772 $4,242 $3,383
Ratio of expenses to average net assets (g)(h) 2.31% 2.36% 2.32%
Ratio of net investment loss to average net assets (g)(h) (2.01)% (2.06)% (2.05)%
Waiver (h) 0.12% 0.12% 0.12%
Portfolio turnover rate 53%(f) 78%(f) 88%
- -------------------------------------------------------------------------------------------------------------
(a) The Fund 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 Investment 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.
161
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA MID CAP GROWTH FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
PERIOD ENDED
FEBRUARY 29,
CLASS C SHARES 2004 (a)
- -----------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $17.88
- -----------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b) (0.14)
Net realized and unrealized gain on investments 1.63
------------
Total from investment operations 1.49
- -----------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $19.37
Total return (c)(d)(e) 8.33%
- -----------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $264
Ratio of expenses to average net assets (f)(g) 2.19%
Ratio of net investment loss to average net assets (f)(g) (1.90)%
Waiver (g) 0.09%
Portfolio turnover rate 53%(e)
- -----------------------------------------------------------------------
(a) Class C shares were initially offered on October 13, 2003. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming no contingent deferred sales
charge.
(d) Had the Investment Advisor not waived a portion of expenses, total return
would have been reduced.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS D SHARES 2004 2003 (a) 2002 (b)
- -------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $17.98 $14.76 $15.15
- -------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) (0.17) (0.21) (0.04)
Net realized and unrealized gain (loss) on investments 1.54 3.43 (0.35)
------------ ------------ ------------
Total from investment operations 1.37 3.22 (0.39)
- -------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $19.35 $17.98 $14.76
Total return (d)(e)(f) 7.62% 21.82% (2.57)%
- -------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $803 $737 $433
Ratio of expenses to average net assets (g)(h) 2.18% 2.27% 2.32%
Ratio of net investment loss to average net assets (g)(h) (1.88)% (1.97)% (2.05)%
Waiver (h) 0.09% 0.09% 0.09%
Portfolio turnover rate 53%(f) 78%(f) 88%
- -------------------------------------------------------------------------------------------------------------
(a) The Fund 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 contingent deferred sales
charge.
(e) Had the Investment 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.
162
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA MID CAP GROWTH FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS G SHARES 2004 2003 (a) 2002 (b)
- -------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $17.98 $14.77 $15.15
- -------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) (0.21) (0.23) (0.04)
Net realized and unrealized gain (loss) on investments 1.54 3.44 (0.34)
------------ ------------ ------------
Total from investment operations 1.33 3.21 (0.38)
- -------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $19.31 $17.98 $14.77
Total return (d)(e) 7.40% 21.73% (2.51)%
- -------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $809 $806 $753
Ratio of expenses to average net assets (f)(g) 2.53% 2.47% 2.35%
Ratio of net investment loss to average net assets (f)(g) (2.23)% (2.17)% (2.08)%
Portfolio turnover rate 53%(e) 78%(e) 88%
- -------------------------------------------------------------------------------------------------------------
(a) The Fund 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.
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS T SHARES 2004 2003 (a) 2002 (b)
- -------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $18.12 $14.79 $15.15
- -------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) (0.11) (0.12) (0.02)
Net realized and unrealized gain (loss) on investments 1.57 3.45 (0.34)
------------ ------------ ------------
Total from investment operations 1.46 3.33 (0.36)
- -------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $19.58 $18.12 $14.79
Total return (d)(e) 8.06% 22.52% (2.38)%
- -------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $31,146 $29,920 $25,966
Ratio of expenses to average net assets (f)(g) 1.48% 1.46% 1.45%
Ratio of net investment loss to average net assets (f)(g) (1.18)% (1.16)% (1.18)%
Portfolio turnover rate 53%(e) 78%(e) 88%
- -------------------------------------------------------------------------------------------------------------
(a) The Fund 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.
163
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA MID CAP GROWTH FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED YEAR ENDED DECEMBER 31,
FEBRUARY 29, AUGUST 31, -----------------------------------------------------------
CLASS Z SHARES 2004 2003 (a) 2002 (b) 2001 2000 1999 1998
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $18.17 $14.79 $19.60 $25.99 $29.93 $23.62 $20.26
- ---------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.07)(c) (0.08)(c) (0.13)(c) (0.11) (0.10) (0.16) (0.03)
Net realized and unrealized
gain (loss) on investments 1.57 3.46 (4.68) (5.35) 4.45 8.74 3.40
---------- -------- -------- --------- ---------- --------- --------
Total from investment operations 1.50 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 $19.67 $18.17 $14.79 $19.60 $25.99 $29.93 $23.62
Total return (e) 8.26%(f)(g) 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) $1,025,036 $998,943 $807,342 $786,071 $1,095,525 $918,322 $969,359
Ratio of expenses to
average net assets (h) 1.02%(i) 1.09%(i) 1.12% 1.08% 0.99% 1.09% 1.03%
Ratio of net investment
loss to average net assets (h) (0.72)%(i) (0.80)%(i) (0.85)% (0.49)% (0.38)% (0.64)% (0.09)%
Waiver 0.05%(i) 0.05%(i) 0.05% -- -- -- --
Portfolio turnover rate 53%(g) 78%(g) 88% 186% 169% 135% 135%
- ---------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were renamed 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 Investment 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.
164
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA SMALL CAP GROWTH FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED YEAR ENDED DECEMBER 31,
FEBRUARY 29, AUGUST 31, ------------------------------------------------------------
CLASS Z SHARES 2004 2003 (a) 2002 (b) 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $21.62 $16.30 $22.20 $25.87 $27.26 $17.43 $16.65
- ----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.13)(c) (0.13)(c) (0.17)(c) (0.13) (0.10) (0.14) (0.09)
Net realized and unrealized
gain (loss) on investments 3.34 5.45 (5.73) (3.54) 1.75 10.45 0.87
--------- --------- --------- --------- --------- --------- --------
Total from investment operations 3.21 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 $24.83 $21.62 $16.30 $22.20 $25.87 $27.26 $17.43
Total return (e) 14.85%(f) 32.64%(f) (26.58)% (14.19)% 5.85% 59.15% 4.69%
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $784,045 $637,616 $493,031 $617,966 $518,970 $290,374 $160,472
Ratio of expenses to
average net assets (g) 1.21%(h) 1.28%(h) 1.24% 1.23% 1.22% 1.30% 1.34%
Ratio of net investment loss
to average net assets (g) (1.06)%(h) (1.09)%(h) (0.90)% (0.71)% (0.44)% (0.84)% (0.68)%
Portfolio turnover rate 64%(f) 79%(f) 109% 129% 145% 188% 158%
- ----------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were renamed 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.
165
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA REAL ESTATE EQUITY FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS A SHARES 2004 2003 (a) 2002 (b)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $21.04 $17.80 $17.01
- ---------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.40 0.36(d) 0.26
Net realized and unrealized gain on investments 3.59 3.11(d) 0.78
------------ ------------ ------------
Total from investment operations 3.99 3.47 1.04
- ---------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.36) (0.23) (0.25)
From net realized gains (0.18) -- --
------------ ------------ ------------
Total distributions (0.54) (0.23) (0.25)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $24.49 $21.04 $17.80
Total return (e)(f) 19.28% 19.62% 6.10%
- ---------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $36,969 $12,364 $905
Ratio of expenses to average net assets (g)(h) 1.20% 1.55% 1.43%
Ratio of net investment income to average net assets (g)(h) 3.55% 2.70%(d) 4.81%
Portfolio turnover rate 7%(f) 33%(f) 53%
- ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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.
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS A SHARES 2004 2003 (a) 2002 (b)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $21.03 $17.82 $17.01
- ---------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.34 0.24(d) 0.22
Net realized and unrealized gain on investments 3.58 3.12(d) 0.81
------------ ------------ ------------
Total from investment operations 3.92 3.36 1.03
- ---------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.27) (0.15) (0.22)
From net realized gains (0.18) -- --
------------ ------------ ------------
Total distributions (0.45) (0.15) (0.22)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $24.50 $21.03 $17.82
Total return (e)(f) 18.86% 18.97% 6.09%
- ---------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $9,044 $4,776 $1,074
Ratio of expenses to average net assets (g)(h) 2.01% 2.37% 2.18%
Ratio of net investment income to average net assets (g)(h) 2.99% 1.86%(d) 4.06%
Portfolio turnover rate 7%(f) 33%(f) 53%
- ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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.
166
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA REAL ESTATE EQUITY FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
PERIOD ENDED
FEBRUARY 29,
CLASS C SHARES 2004 (a)
- -------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $21.99
- -------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b) 0.19
Net realized and unrealized gain on investments 2.59
------------
Total from investment operations 2.78
- -------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.10)
From net realized gains (0.18)
------------
Total distributions (0.28)
- -------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $24.49
Total return (c)(d) 12.71%
- -------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $1,524
Ratio of expenses to average net assets (e)(f) 1.94%
Ratio of net investment income to average net assets (e)(f) 2.08%
Portfolio turnover rate 7%(d)
- -------------------------------------------------------------------------
(a) Class C shares were initially offered on October 13, 2003. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS D SHARES 2004 2003 (a) 2002 (b)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $21.03 $17.82 $17.01
- ---------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.36 0.27(d) 0.21
Net realized and unrealized gain on investments 3.57 3.10(d) 0.82
------------ ------------ ------------
Total from investment operations 3.93 3.37 1.03
- ---------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.28) (0.16) (0.22)
From net realized gains (0.18) -- --
------------ ------------ ------------
Total distributions (0.46) (0.16) (0.22)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $24.50 $21.03 $17.82
Total return (e)(f) 18.93% 18.99% 6.09%
- ---------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $4,892 $3,466 $365
Ratio of expenses to average net assets (g)(h) 1.95% 2.30% 2.18%
Ratio of net investment income to average net assets (g)(h) 3.18% 2.02%(d) 4.06%
Portfolio turnover rate 7%(f) 33%(f) 53%
- ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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
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.
167
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA REAL ESTATE EQUITY FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED YEAR ENDED DECEMBER 31,
FEBRUARY 29, AUGUST 31, ----------------------------------------------------------
CLASS Z SHARES 2004 2003 (a) 2002 (b) 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $21.06 $17.81 $18.04 $17.89 $14.57 $15.76 $18.80
- ----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.47(c) 0.39(c)(d) 0.82(c) 0.79 0.81 0.82 0.75
Net realized and unrealized
gain (loss) on investments 3.56 3.14(d) (0.25) 0.15 3.32 (1.19) (3.04)
----------- --------- --------- --------- --------- --------- ---------
Total from investment
operations 4.03 3.53 0.57 0.94 4.13 (0.37) (2.29)
- ----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.40) (0.28) (0.71) (0.72) (0.75) (0.71) (0.66)
From net realized gains (0.18) -- (0.09) (0.07) (0.06) (0.11) (0.09)
----------- --------- --------- --------- --------- --------- ---------
Total distributions (0.58) (0.28) (0.80) (0.79) (0.81) (0.82) (0.75)
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $24.51 $21.06 $17.81 $18.04 $17.89 $14.57 $15.76
Total return (e) 19.46%(f) 20.01%(f) 3.12% 5.41% 28.84% (2.45)% (12.33)%
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $1,035,547 $884,747 $774,646 $621,590 $436,764 $241,716 $164,172
Ratio of expenses to
average net assets (g) 0.97%(h) 1.08%(h) 0.94% 0.95% 0.96% 0.99% 1.01%
Ratio of net investment
income to average
net assets (g) 4.17%(h) 3.09%(d)(h) 5.30% 4.65% 5.16% 5.66% 4.60%
Portfolio turnover rate 7%(f) 33%(f) 53% 41% 25% 29% 6%
- ----------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were renamed 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.
168
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA TECHNOLOGY FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS A SHARES 2004 2003 (a) 2002 (b)
- --------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $5.91 $3.79 $3.82
- --------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) (0.07) (0.04) (0.01)
Net realized and unrealized gain (loss) on investments 1.52 2.16 (0.02)
------------ ------------ ------------
Total from investment operations 1.45 2.12 (0.03)
- --------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $7.36 $5.91 $3.79
Total return (d)(e)(f) 24.53% 55.94% (0.79)%
- --------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $1,833 $376 $1
Ratio of expenses to average net assets (g)(h) 1.90% 1.90% 1.76%
Ratio of net investment loss to average net assets (g)(h) (1.80)% (1.35)% (1.35)%
Reimbursement (h) 0.27% 3.06% 1.24%
Portfolio turnover rate 186%(f) 523%(f) 512%
- --------------------------------------------------------------------------------------------------------------
(a) The Fund 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 Investment Advisor not 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.
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS B SHARES 2004 2003 (a) 2002 (b)
- --------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $5.86 $3.78 $3.82
- --------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) (0.09) (0.07) (0.01)
Net realized and unrealized gain (loss) on investments 1.51 2.15 (0.03)
------------ ------------ ------------
Total from investment operations 1.42 2.08 (0.04)
- --------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $7.28 $5.86 $3.78
Total return (d)(e)(f) 24.23% 55.03% (1.05)%
- --------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $3,213 $1,246 $7
Ratio of expenses to average net assets (g)(h) 2.65% 2.65% 2.51%
Ratio of net investment loss to average net assets (g)(h) (2.52)% (2.11)% (2.10)%
Reimbursement (h) 0.29% 2.40% 1.24%
Portfolio turnover rate 186%(f) 523%(f) 512%
- --------------------------------------------------------------------------------------------------------------
(a) The Fund 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 Investment Advisor not 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.
169
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA TECHNOLOGY FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
PERIOD ENDED
FEBRUARY 29,
CLASS C SHARES 2004 (a)
- -----------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $6.48
- -----------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b) (0.07)
Net realized and unrealized gain on investments 0.87
------------
Total from investment operations 0.80
- -----------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $7.28
Total return (c)(d)(e) 12.35%
- -----------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $230
Ratio of expenses to average net assets (f)(g) 2.65%
Ratio of net investment loss to average net assets (f)(g) (2.59)%
Reimbursement (g) 0.76%
Portfolio turnover rate 186%(e)
- -----------------------------------------------------------------------
(a) Class C shares were initially offered on October 13, 2003. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming no contingent deferred sales
charge.
(d) Had the Investment Advisor not reimbursed a portion of expenses, total
return would have been reduced.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS D SHARES 2004 2003 (a) 2002 (b)
- --------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $5.88 $3.78 $3.82
- --------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) (0.08) (0.07) (0.01)
Net realized and unrealized gain (loss) on investments 1.51 2.17 (0.03)
------------ ------------ ------------
Total from investment operations 1.43 2.10 (0.04)
- --------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $7.31 $5.88 $3.78
Total return (d)(e)(f) 24.32% 55.56% (1.05)%
- --------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $42 $15 $1
Ratio of expenses to average net assets (g)(h) 2.65% 2.65% 2.51%
Ratio of net investment loss to average net assets (g)(h) (2.50)% (2.13)% (2.10)%
Reimbursement (h) 0.89% 4.00% 1.24%
Portfolio turnover rate 186%(f) 523%(f) 512%
- --------------------------------------------------------------------------------------------------------------
(a) The Fund 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 contingent deferred sales
charge.
(e) Had the Investment Advisor not 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.
170
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA TECHNOLOGY FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED YEAR ENDED DECEMBER 31, PERIOD ENDED
FEBRUARY 29, AUGUST 31, ------------------------ DECEMBER 31,
CLASS Z SHARES 2004 2003 (a) 2002 (b) 2001 2000 (c)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $5.93 $3.79 $6.13 $8.63 $10.00
- -----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.05)(d) (0.04)(d) (0.06)(d) (0.08) 0.01
Net realized and unrealized gain (loss) on investments 1.52 2.18 (2.28) (2.42) (1.37)
-------- -------- --------- --------- ---------
Total from investment operations 1.47 2.14 (2.34) (2.50) (1.36)
- -----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income -- -- -- -- (0.01)
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $7.40 $5.93 $3.79 $6.13 $8.63
Total return (e)(f) 24.79%(g) 56.46%(g) (38.17)% (28.97)% (13.78)%(g)
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $34,999 $19,663 $8,055 $10,385 $4,327
Ratio of expenses to average net assets (h) 1.65%(i) 1.65%(i) 1.65% 1.69% 1.48%(i)
Ratio of net investment income (loss) to average net
assets (h) (1.52)%(i) (1.19)%(i) (1.24)% (1.26)% 0.99%(i)
Reimbursement 0.43%(i) 2.73%(i) 1.33% 1.13% 7.49%(i)
Portfolio turnover rate 186%(g) 523%(g) 512% 413% 63%(g)
- -----------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were renamed 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 Investment Advisor not 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.
171
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA STRATEGIC INVESTOR FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS A SHARES 2004 2003 (a) 2002 (b)
- -----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $15.95 $13.13 $12.72
- -----------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.01 0.06 0.01
Net realized and unrealized gain on investments and foreign currency 2.72 2.76 0.40
------------ ------------ ------------
Total from investment operations 2.73 2.82 0.41
- -----------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.07) -- --
- -----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $18.61 $15.95 $13.13
Total return (d)(e) 17.15% 21.48% 3.22%
- -----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $74,187 $60,112 $53,526
Ratio of expenses to average net assets (f)(g) 1.23% 1.30% 1.21%
Ratio of net investment income to average net assets (f)(g) 0.12% 0.60% 0.64%
Portfolio turnover rate 59%(e) 68%(e) 188%
- -----------------------------------------------------------------------------------------------------------------------
(a) The Fund 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.
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS B SHARES 2004 2003 (a) 2002 (b)
- -----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $15.82 $13.10 $12.72
- -----------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) (0.05) (0.03) (0.01)
Net realized and unrealized gain on investments and foreign currency 2.71 2.75 0.39
------------ ------------ ------------
Total from investment operations 2.66 2.72 0.38
- -----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $18.48 $15.82 $13.10
Total return (d)(e)(f) 16.81% 20.76% 2.99%
- -----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $8,513 $3,398 $2,350
Ratio of expenses to average net assets (g)(h) 1.95% 2.22% 2.36%
Ratio of net investment loss to average net assets (g)(h) (0.62)% (0.33)% (0.51)%
Waiver (h) 0.23% 0.23% 0.23%
Portfolio turnover rate 59%(f) 68%(f) 188%
- -----------------------------------------------------------------------------------------------------------------------
(a) The Fund 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 Investment 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.
172
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA STRATEGIC INVESTOR FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
PERIOD ENDED
FEBRUARY 29,
CLASS C SHARES 2004 (a)
- -------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $16.42
- ------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b) (0.07)
Net realized and unrealized gain on investments
and foreign currency 2.13
----------
Total from investment operations 2.06
- -----------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $18.48
Total return (c)(d)(e) 12.55%
- -----------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $3,149
Ratio of expenses to average net assets (f)(g) 2.28%
Ratio of net investment loss to average net assets (f)(g) (1.05)%
Waiver (g) 0.15%
Portfolio turnover rate 59%(e)
- -----------------------------------------------------------------------
(a) Class C shares were initially offered on October 13, 2003. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming no contingent deferred sales
charge.
(d) Had the Investment Advisor not waived a portion of expenses, total return
would have been reduced.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS D SHARES 2004 2003 (a) 2002 (b)
- ------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $15.81 $13.11 $12.72
- ------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) (0.05) (0.05) (0.01)
Net realized and unrealized gain on investments and foreign currency 2.70 2.75 0.40
------------ ------------ ------------
Total from investment operations 2.65 2.70 0.39
- ------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $18.46 $15.81 $13.11
Total return (d)(e)(f) 16.76% 20.59% 3.07%
- ------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $821 $704 $355
Ratio of expenses to average net assets (g)(h) 1.93% 2.34% 2.28%
Ratio of net investment loss to average net assets (g)(h) (0.57)% (0.48)% (0.43)%
Waiver (h) 0.15% 0.15% 0.15%
Portfolio turnover rate 59%(f) 68%(f) 188%
- ------------------------------------------------------------------------------------------------------------------------
(a) The Fund 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 contingent deferred sales
charge.
(e) Had the Investment 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.
173
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA STRATEGIC INVESTOR FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED YEAR ENDED DECEMBER 31, PERIOD ENDED
FEBRUARY 29, AUGUST 31, ---------------------------- DECEMBER 31,
CLASS Z SHARES 2004 2003 (a) 2002 (b) 2001 2000 (c)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $15.98 $13.14 $14.52 $11.23 $10.00
- ----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.03(d) 0.08(d) 0.10(d) 0.05 0.02
Net realized and unrealized gain
(loss) on investments
and foreign currency 2.74 2.76 (1.35) 3.29 1.23
----------- ----------- ----------- ----------- ---------
Total from investment operations 2.77 2.84 (1.25) 3.34 1.25
- ----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.11) -- (0.11) (0.05) (0.02)
From net realized gains -- -- (0.02) -- --
----------- ----------- ----------- ----------- ---------
Total distributions (0.11) -- (0.13) (0.05) (0.02)
- ----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $18.64 $15.98 $13.14 $14.52 $11.23
Total return (e) 17.36%(f)(g) 21.61%(f)(g) (8.56)%(f) 29.76% 12.25%(f)(g)
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $259,830 $227,454 $209,610 $139,504 $9,526
Ratio of expenses to average net assets (h) 0.98%(i) 1.08%(i) 1.23% 1.13% 1.34%(i)
Ratio of net investment income to
average net assets (h) 0.37%(i) 0.82%(i) 0.62% 0.71% 1.92%(i)
Waiver 0.03%(i) 0.03%(i) 0.03% -- 3.97%(i)
Portfolio turnover rate 59%(g) 68%(g) 188% 278% 64%(g)
- ----------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were renamed 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 Investment 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.
174
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA BALANCED FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS A SHARES 2004 2003 (a) 2002 (b)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $19.18 $17.52 $17.58
- ---------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.15 0.16 0.03
Net realized and unrealized gain on investments 1.72 1.64 --(d)
------------ ------------ ------------
Total from investment operations 1.87 1.80 0.03
- ---------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.13) (0.14) (0.09)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $20.92 $19.18 $17.52
Total return (e)(f) 9.79% 10.35% 0.19%
- ---------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $1,946 $670 $146
Ratio of expenses to average net assets (g)(h) 1.09% 1.42% 1.17%
Ratio of net investment income to average net assets (g)(h) 1.45% 1.32% 2.03%
Portfolio turnover rate 77%(f) 110%(f) 98%
- ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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.
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS B SHARES 2004 2003 (a) 2002 (b)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $19.16 $17.52 $17.58
- ---------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.07 0.07 0.02
Net realized and unrealized gain (loss) on investments 1.73 1.65 (0.01)
------------ ------------ ------------
Total from investment operations 1.80 1.72 0.01
- ---------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.06) (0.08) (0.07)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $20.90 $19.16 $17.52
Total return (d)(e) 9.40% 9.83% 0.06%
- ---------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $5,755 $3,349 $608
Ratio of expenses to average net assets (f)(g) 1.80% 2.17% 1.92%
Ratio of net investment income to average net assets (f)(g) 0.75% 0.59% 1.28%
Portfolio turnover rate 77%(e) 110%(e) 98%
- ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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.
175
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA BALANCED FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
PERIOD ENDED
FEBRUARY 29,
CLASS C SHARES 2004 (a)
- -------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $19.59
- -------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b) 0.06
Net realized and unrealized gain on investments 1.29
------------
Total from investment operations 1.35
- -------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.04)
- -------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $20.90
Total return (c)(d) 6.92%
- -------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $527
Ratio of expenses to average net assets (e)(f) 1.78%
Ratio of net investment income to average net assets (e)(f) 0.86%
Portfolio turnover rate 77%(d)
- -------------------------------------------------------------------------
(a) Class C shares were initially offered on October 13, 2003. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS D SHARES 2004 2003 (a) 2002 (b)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $19.17 $17.51 $17.58
- ---------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.08 0.11 0.02
Net realized and unrealized gain (loss) on investments 1.71 1.64 (0.02)
------------ ------------ ------------
Total from investment operations 1.79 1.75 --
- ---------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.07) (0.09) (0.07)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $20.89 $19.17 $17.51
Total return (d)(e) 9.37% 10.01% 0.01%
- ---------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $520 $770 $446
Ratio of expenses to average net assets (f)(g) 1.81% 1.87% 1.92%
Ratio of net investment income to average net assets (f)(g) 0.82% 0.89% 1.28%
Portfolio turnover rate 77%(e) 110%(e) 98%
- ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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
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.
176
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA BALANCED FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED YEAR ENDED DECEMBER 31,
FEBRUARY 29, AUGUST 31, --------------------------------------------------------------
CLASS Z SHARES 2004 2003 (a) 2002 (b) 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $19.19 $17.51 $20.67 $22.96 $24.72 $23.17 $21.42
- ----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.18(c) 0.24(c) 0.47(c) 0.57(d) 0.67 0.69 0.72
Net realized and unrealized
gain (loss) on investments 1.72 1.64 (3.13) (2.27)(d) (0.41) 2.21 3.52
--------- --------- --------- --------- ----------- ---------- ---------
Total from investment operations 1.90 1.88 (2.66) (1.70) 0.26 2.90 4.24
- ----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.18) (0.20) (0.50) (0.59) (0.68) (0.69) (0.73)
From net realized gains -- -- -- -- (1.34) (0.66) (1.76)
--------- --------- --------- --------- ----------- ---------- ---------
Total distributions (0.18) (0.20) (0.50) (0.59) (2.02) (1.35) (2.49)
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $20.91 $19.19 $17.51 $20.67 $22.96 $24.72 $23.17
Total return (e) 9.99%(f) 10.81%(f) (12.97)% (7.40)% 0.82% 12.70% 20.07%
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $613,337 $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) 0.77%(h) 0.70% 0.67% 0.65% 0.66% 0.67%
Ratio of net investment income
to average net assets (g) 1.78%(h) 2.03%(h) 2.50% 2.70%(d) 2.73% 2.85% 3.22%
Portfolio turnover rate 77%(f) 110%(f) 98% 111% 105% 133% 128%
- ----------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were renamed 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.
177
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA SHORT TERM BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS A SHARES 2004 2003 (a) 2002 (b)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $8.62 $8.67 $8.63
- --------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.08 0.10 0.04
Net realized and unrealized gain (loss) on investments and futures contracts 0.08 (0.03) 0.04
------------ ------------ ------------
Total from investment operations 0.16 0.07 0.08
- --------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.08) (0.12) (0.04)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $8.70 $8.62 $8.67
Total return (d)(e)(f) 1.89% 0.82% 0.94%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $31,408 $37,261 $5,543
Ratio of expenses to average net assets (g)(h) 0.94% 1.00% 1.00%
Ratio of net investment income to average net assets (g)(h) 1.92% 1.78% 3.53%
Reimbursement (h) 0.02% 0.05% 0.02%
Portfolio turnover rate 29%(f) 137%(f) 182%
- --------------------------------------------------------------------------------------------------------------------------------
(a) The Fund 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 Investment Advisor not 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.
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS B SHARES 2004 2003 (a) 2002 (b)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $8.62 $8.67 $8.63
- --------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.05 0.07 0.03
Net realized and unrealized gain (loss) on investments and futures contracts 0.08 (0.04) 0.04
------------ ------------ ------------
Total from investment operations 0.13 0.03 0.07
- --------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.05) (0.08) (0.03)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $8.70 $8.62 $8.67
Total return (d)(e)(f) 1.49% 0.35% 0.77%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $24,706 $26,965 $6,261
Ratio of expenses to average net assets (g)(h) 1.69% 1.75% 1.75%
Ratio of net investment income to average net assets (g)(h) 1.15% 1.16% 2.78%
Reimbursement (h) 0.10% 0.15% 0.04%
Portfolio turnover rate 29%(f) 137%(f) 182%
- --------------------------------------------------------------------------------------------------------------------------------
(a) The Fund 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 Investment Advisor not 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.
178
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA SHORT TERM BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
PERIOD ENDED
FEBRUARY 29,
CLASS C SHARES 2004 (a)
- ----------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $8.67
- ----------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b) 0.06
Net realized and unrealized gain (loss) on investments
and futures contracts 0.02
-----------
Total from investment operations 0.08
- ----------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.05)
- ----------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $8.70
Total return (c)(d)(e) 0.98%
- ----------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $1,859
Ratio of expenses to average net assets (f)(g) 1.08%
Ratio of net investment income to average net assets (f)(g) 1.72%
Reimbursement (g) 0.06%
Waiver (g)(h) 0.60%
Portfolio turnover rate 29%(e)
- ----------------------------------------------------------------------------
(a) Class C shares were initially offered on October 13, 2003. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(d) Had the Investment Advisor/Distributor not waived or reimbursed a portion of
expenses, total return would have been reduced.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
(h) Amount represents voluntary waivers of service and distribution fees.
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS D SHARES 2004 2003 (a) 2002 (b)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $8.62 $8.67 $8.63
- --------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.08 0.10 0.04
Net realized and unrealized gain (loss) on investments and futures contracts 0.08 (0.04) 0.04
------------ ------------ ------------
Total from investment operations 0.16 0.06 0.08
- --------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.08) (0.11) (0.04)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $8.70 $8.62 $8.67
Total return (d)(e)(f) 1.82% 0.72% 0.88%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $15,919 $18,512 $5,223
Ratio of expenses to average net assets (g)(h) 1.08% 1.15% 1.15%
Ratio of net investment income to average net assets (g)(h) 1.76% 1.71% 3.38%
Reimbursement (h) --%(i) 0.18% 0.04%
Waiver (h)(j) 0.60% 0.60% 0.60%
Portfolio turnover rate 29%(f) 137%(f) 182%
- --------------------------------------------------------------------------------------------------------------------------------
(a) The Fund 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
contingent deferred sales charge.
(e) Had the Investment 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) Rounds to less than 0.01%.
(j) Amounts represent voluntary waivers of service and distribution fees.
179
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA SHORT TERM BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS G SHARES 2004 2003 (a) 2002 (b)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $8.62 $8.67 $8.63
- --------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.06 0.09 0.03
Net realized and unrealized gain (loss) on investments and futures contracts 0.08 (0.05) 0.04
------------ ------------ ------------
Total from investment operations 0.14 0.04 0.07
- --------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.06) (0.09) (0.03)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $8.70 $8.62 $8.67
Total return (d)(e)(f) 1.59% 0.47% 0.85%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $1,285 $1,614 $1,874
Ratio of expenses to average net assets (g)(h) 1.49% 1.55% 1.55%
Ratio of net investment income to average net assets (g)(h) 1.34% 1.58% 2.98%
Reimbursement (h) 0.23% 0.10% 0.05%
Portfolio turnover rate 29%(f) 137%(f) 182%
- --------------------------------------------------------------------------------------------------------------------------------
(a) The Fund 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 Investment Advisor/Distributor not 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.
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS T SHARES 2004 2003 (a) 2002 (b)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $8.62 $8.67 $8.63
- --------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.09 0.13 0.04
Net realized and unrealized gain (loss) on investments and futures contracts 0.08 (0.05) 0.04
------------ ------------ ------------
Total from investment operations 0.17 0.08 0.08
- --------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.09) (0.13) (0.04)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $8.70 $8.62 $8.67
Total return (d)(e)(f) 1.93% 0.93% 0.95%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $25,762 $28,230 $30,859
Ratio of expenses to average net assets (g)(h) 0.84% 0.90% 0.90%
Ratio of net investment income to average net assets (g)(h) 2.00% 2.25% 3.63%
Reimbursement (h) 0.07% 0.04% 0.02%
Portfolio turnover rate 29%(f) 137%(f) 182%
- --------------------------------------------------------------------------------------------------------------------------------
(a) The Fund 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 Investment Advisor/Distributor not 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.
180
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA SHORT TERM BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED YEAR ENDED DECEMBER 31,
FEBRUARY 29, AUGUST 31, ----------------------------------------------------------
CLASS Z SHARES 2004 2003 (a) 2002 (b) 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $8.62 $8.67 $8.55 $8.36 $8.20 $8.39 $8.29
- ----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.09(c) 0.14(c) 0.32(c) 0.46(d) 0.42 0.33 0.38
Net realized and unrealized
gain (loss) on investments
and futures contracts 0.08 (0.05) 0.14 0.21(d) 0.16 (0.18) 0.14
--------- --------- --------- -------- -------- -------- --------
Total from investment operations 0.17 0.09 0.46 0.67 0.58 0.15 0.52
- ----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.09) (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 (0.09) (0.14) (0.34) (0.48) (0.42) (0.34) (0.42)
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $8.70 $8.62 $8.67 $8.55 $8.36 $8.20 $8.39
Total return (f) 2.02%(g)(h) 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) $442,544 $436,593 $317,588 $62,930 $35,856 $38,072 $40,578
Ratio of expenses to average
net assets (i) 0.66%(j) 0.66%(j) 0.67% 0.75% 0.88% 0.91% 0.89%
Ratio of net investment income
to average net assets (i) 2.19%(j) 2.36%(j) 3.86% 5.29%(d) 5.09% 4.09% 4.55%
Reimbursement 0.04%(j) 0.07%(j) -- 0.16% 0.02% -- --
Portfolio turnover rate 29%(g) 137%(g) 182% 137% 147% 211% 182%
- ----------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were renamed 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 Investment Advisor not 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.
181
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA FIXED INCOME SECURITIES FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS A SHARES 2004 2003 (a) 2002 (b)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $13.34 $13.52 $13.42
- ---------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.24 0.26 0.11
Net realized and unrealized gain (loss) on investments 0.33 (0.14) 0.08
------------ ------------ ------------
Total from investment operations 0.57 0.12 0.19
- ---------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.26) (0.30) (0.09)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $13.65 $13.34 $13.52
Total return (d)(e) 4.28% 0.84% 1.41%
- ---------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $9,189 $7,503 $945
Ratio of expenses to average net assets (f)(g) 1.06% 1.44% 0.92%
Ratio of net investment income to average net assets (f)(g) 3.62% 2.84% 4.78%
Portfolio turnover rate 82%(e) 161%(e) 103%
- ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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.
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS B SHARES 2004 2003 (a) 2002 (b)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $13.34 $13.52 $13.42
- ---------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.19 0.20 0.09
Net realized and unrealized gain (loss) on investments 0.32 (0.15) 0.08
------------ ------------ ------------
Total from investment operations 0.51 0.05 0.17
- ---------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.20) (0.23) (0.07)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $13.65 $13.34 $13.52
Total return (d)(e) 3.88% 0.34% 1.27%
- ---------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $4,716 $4,410 $1,466
Ratio of expenses to average net assets (f)(g) 1.84% 2.10% 1.71%
Ratio of net investment income to average net assets (f)(g) 2.85% 2.22% 3.99%
Portfolio turnover rate 82%(e) 161%(e) 103%
- ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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.
182
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA FIXED INCOME SECURITIES FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
PERIOD ENDED
FEBRUARY 29,
CLASS C SHARES 2004 (a)
- ------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $13.50
- ------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b) 0.16
Net realized and unrealized gain on investments 0.16
-----------
Total from investment operations 0.32
- ------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.17)
- ------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $13.65
Total return (c)(d)(e) 2.39%
- ------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $132
Ratio of expenses to average net assets (f)(g) 1.62%
Ratio of net investment income to average net assets (f)(g) 2.91%
Waiver (g)(h) 0.15%
Portfolio turnover rate 82%(e)
- ------------------------------------------------------------------------
(a) Class C shares were initially offered on October 13, 2003. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(d) Had the Distributor not waived a portion of expenses, total return would
have been reduced.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
(h) Amount represents voluntary waivers of service and distribution fees.
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS D SHARES 2004 2003 (a) 2002 (b)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $13.34 $13.52 $13.42
- ---------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.20 0.22 0.09
Net realized and unrealized gain (loss) on investments 0.33 (0.15) 0.08
------------ ------------ ------------
Total from investment operations 0.53 0.07 0.17
- ---------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.22) (0.25) (0.07)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $13.65 $13.34 $13.52
Total return (d)(e)(f) 3.97% 0.51% 1.30%
- ---------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $2,458 $2,632 $427
Ratio of expenses to average net assets (g)(h) 1.66% 1.79% 1.58%
Ratio of net investment income to average net assets (g)(h) 3.04% 2.44% 4.12%
Waiver (h)(i) 0.15% 0.15% 0.15%
Portfolio turnover rate 82%(f) 161%(f) 103%
- ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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
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 service and distribution fees.
183
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA FIXED INCOME SECURITIES FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED YEAR ENDED DECEMBER 31,
FEBRUARY 29, AUGUST 31, --------------------------------------------------------------
CLASS Z SHARES 2004 2003 (a) 2002 (b) 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $13.34 $13.52 $13.22 $12.97 $12.44 $13.42 $13.41
- ----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.26(c) 0.33(c) 0.67(c) 0.77(d) 0.82 0.78 0.83
Net realized and unrealized
gain (loss) on investments 0.33 (0.16) 0.31 0.26(d) 0.53 (0.98) 0.14
--------- --------- --------- --------- --------- --------- ---------
Total from investment operations 0.59 0.17 0.98 1.03 1.35 (0.20) 0.97
- ----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.28) (0.35) (0.68) (0.78) (0.82) (0.78) (0.83)
From net realized gains -- -- -- -- -- --(e) (0.13)
--------- --------- --------- --------- --------- --------- ---------
Total distributions (0.28) (0.35) (0.68) (0.78) (0.82) (0.78) (0.96)
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $13.65 $13.34 $13.52 $13.22 $12.97 $12.44 $13.42
Total return (f) 4.43%(g) 1.26%(g) 7.65% 8.13% 11.27% (1.50)% 7.44%
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $388,982 $506,046 $547,524 $465,743 $378,799 $397,147 $422,330
Ratio of expenses to average
net assets (h) 0.76%(i) 0.77%(i) 0.67% 0.66% 0.66% 0.64% 0.65%
Ratio of net investment income
to average net assets (h) 3.91%(i) 3.66%(i) 5.03% 5.83%(d) 6.53% 6.03% 6.15%
Portfolio turnover rate 82%(g) 161%(g) 103% 110% 105% 155% 107%
- ----------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were renamed 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.
184
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA NATIONAL MUNICIPAL BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS A SHARES 2004 2003 (a) 2002 (b)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $10.11 $10.28 $10.22
- ---------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.18 0.24 0.06
Net realized and unrealized gain (loss) on investments 0.45 (0.16) 0.10
------------ ------------ ------------
Total from investment operations 0.63 0.08 0.16
- ---------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.18) (0.24) (0.06)
From net realized gains (0.08) (0.01) (0.04)
------------ ------------ ------------
Total distributions (0.26) (0.25) (0.10)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $10.48 $10.11 $10.28
Total return (d)(e)(f) 6.28% 0.75% 1.59%
- ---------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $969 $398 $67
Ratio of expenses to average net assets (g)(h) 0.90% 0.90% 0.90%
Ratio of net investment income to average net assets (g)(h) 3.42% 3.49% 3.85%
Reimbursement (h) 1.63% 2.87% 0.56%
Portfolio turnover rate 9%(f) 12%(f) 43%
- ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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 Investment Advisor not 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.
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS B SHARES 2004 2003 (a) 2002 (b)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $10.11 $10.28 $10.22
- ---------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.14 0.19 0.05
Net realized and unrealized gain (loss) on investments 0.45 (0.16) 0.10
------------ ------------ ------------
Total from investment operations 0.59 0.03 0.15
- ---------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.14) (0.19) (0.05)
From net realized gains (0.08) (0.01) (0.04)
------------ ------------ ------------
Total distributions (0.22) (0.20) (0.09)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $10.48 $10.11 $10.28
Total return (d)(e)(f) 5.89% 0.25% 1.47%
- ---------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $774 $593 $72
Ratio of expenses to average net assets (g)(h) 1.65% 1.65% 1.65%
Ratio of net investment income to average net assets (g)(h) 2.76% 2.77% 3.10%
Reimbursement (h) 1.48% 2.82% 0.56%
Portfolio turnover rate 9%(f) 12%(f) 43%
- ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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 Investment Advisor not 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.
185
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA NATIONAL MUNICIPAL BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
PERIOD ENDED
FEBRUARY 29,
CLASS C SHARES 2004 (a)
- -------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $10.26
- -------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b) 0.12
Net realized and unrealized gain on investments 0.30
- -------------------------------------------------------------------------
Total from investment operations 0.42
------------
LESS DISTRIBUTIONS:
From net investment income (0.12)
From net realized gains (0.08)
------------
Total distributions (0.20)
- -------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $10.48
Total return (c)(d)(e) 4.10%
- -------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $819
Ratio of expenses to average net assets (f)(g) 1.30%
Ratio of net investment income to average net assets (f)(g) 3.09%
Reimbursement (g) 1.81%
Waiver (g)(h) 0.35%
Portfolio turnover rate 9%(e)
- -------------------------------------------------------------------------
(a) Class C shares were initially offered on October 13, 2003. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(d) Had the Investment Advisor/Distributor not waived or reimbursed a portion of
expenses, total return would have been reduced.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
(h) Amount represents voluntary waivers of service and distribution fees.
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS D SHARES 2004 2003 (a) 2002 (b)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $10.11 $10.28 $10.22
- ---------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.16 0.21 0.05
Net realized and unrealized gain (loss) on investments 0.45 (0.16) 0.10
------------ ------------ ------------
Total from investment operations 0.61 0.05 0.15
- ---------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.16) (0.21) (0.05)
From net realized gains (0.08) (0.01) (0.04)
------------ ------------ ------------
Total distributions (0.24) (0.22) (0.09)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $10.48 $10.11 $10.28
Total return (d)(e)(f) 6.07% 0.47% 1.51%
- ---------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $502 $443 $50
Ratio of expenses to average net assets (g)(h) 1.30% 1.30% 1.30%
Ratio of net investment income to average net assets (g)(h) 3.11% 3.00% 3.45%
Reimbursement (h) 1.34% 2.86% 0.56%
Waiver (h)(i) 0.35% 0.35% 0.35%
Portfolio turnover rate 9%(f) 12%(f) 43%
- ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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
contingent deferred sales charge.
(e) Had the Investment 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 service and distribution fees.
186
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA NATIONAL MUNICIPAL BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED YEAR ENDED DECEMBER 31,
FEBRUARY 29, AUGUST 31, -------------------------------------------------
CLASS Z SHARES 2004 2003 (a) 2002 (b) 2001 2000 1999 (C)
- ----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $10.11 $10.28 $9.77 $9.82 $9.28 $10.00
- ----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.19(d) 0.27(d) 0.41(d) 0.44(e) 0.44 0.34
Net realized and unrealized
gain (loss) on investments 0.45 (0.17) 0.55 (0.03)(e) 0.54 (0.72)
-------- -------- -------- -------- -------- --------
Total from investment operations 0.64 0.10 0.96 0.41 0.98 (0.38)
- ----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.19) (0.26) (0.41) (0.44) (0.44) (0.34)
From net realized gains (0.08) (0.01) (0.04) (0.02) -- --
-------- -------- -------- -------- -------- --------
Total distributions (0.27) (0.27) (0.45) (0.46) (0.44) (0.34)
- ----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $10.48 $10.11 $10.28 $9.77 $9.82 $9.28
Total return (f)(g) 6.41%(h) 1.00%(h) 10.04% 4.16% 10.87% (3.93)%(h)
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $12,993 $14,349 $16,470 $13,769 $10,898 $10,135
Ratio of expenses to average net assets (i) 0.65%(j) 0.65%(j) 0.65% 0.65% 0.65% 0.65%(j)
Ratio of net investment income
to average net assets (i) 3.79%(j) 3.86%(j) 4.10% 4.44%(e) 4.68% 4.21%(j)
Reimbursement 1.31%(j) 1.90%(j) 0.50% 0.66% 0.64% 1.07%(j)
Portfolio turnover rate 9%(h) 12%(h) 43% 20% 21% 12%(h)
- ----------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were renamed 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 on all debt securities. The effect of this
change for the year ended December 31, 2001, was to decrease the ratio of
net investment income to average net assets from 4.47% to 4.44%. The impact
to net investment income and net realized and unrealized loss per share was
less than $0.01. Per share data and ratios for periods prior to December 31,
2001 have not been restated to reflect this change in presentation.
(f) Total return at net asset value assuming all distributions reinvested.
(g) Had the Investment Advisor not 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.
187
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA OREGON MUNICIPAL BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS A SHARES 2004 2003 (a) 2002 (b)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $12.25 $12.50 $12.52
- ---------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.23 0.29 0.08
Net realized and unrealized gain (loss) on investments 0.56 (0.22) 0.07
------------ ------------ ------------
Total from investment operations 0.79 0.07 0.15
- ---------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.24) (0.31) (0.08)
From net realized gains (0.14) (0.01) (0.09)
------------ ------------ ------------
Total distributions (0.38) (0.32) (0.17)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $12.66 $12.25 $12.50
Total return (d)(e) 6.49% 0.56% 1.19%
- ---------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $2,693 $2,138 $477
Ratio of expenses to average net assets (f)(g) 0.95% 1.16% 0.92%
Ratio of net investment income to average net assets (f)(g) 3.75% 3.52% 4.11%
Portfolio turnover rate 7%(e) 10%(e) 21%
- ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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.
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS B SHARES 2004 2003 (a) 2002 (b)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $12.25 $12.50 $12.52
- ---------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.18 0.24 0.06
Net realized and unrealized gain (loss) on investments 0.56 (0.23) 0.08
------------ ------------ ------------
Total from investment operations 0.74 0.01 0.14
- ---------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.19) (0.25) (0.07)
From net realized gains (0.14) (0.01) (0.09)
------------ ------------ ------------
Total distributions (0.33) (0.26) (0.16)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $12.66 $12.25 $12.50
Total return (d)(e) 6.09% 0.05% 1.10%
- ---------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $1,379 $999 $373
Ratio of expenses to average net assets (f)(g) 1.71% 1.86% 1.67%
Ratio of net investment income to average net assets (f)(g) 2.96% 2.83% 3.36%
Portfolio turnover rate 7%(e) 10%(e) 21%
- ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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.
188
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA OREGON MUNICIPAL BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
PERIOD ENDED
FEBRUARY 29,
CLASS C SHARES 2004 (a)
- -------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $12.42
- -------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b) 0.16
Net realized and unrealized gain on investments 0.38
------------
Total from investment operations 0.54
- -------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.16)
From net realized gains (0.14)
------------
Total distributions (0.30)
- -------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $12.66
Total return (c)(d)(e) 4.42%
- -------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $63
Ratio of expenses to average net assets (f)(g) 1.31%
Ratio of net investment income to average net assets (f)(g) 3.25%
Waiver (g)(h) 0.35%
Portfolio turnover rate 7%(e)
- -------------------------------------------------------------------------
(a) Class C shares were initially offered on October 13, 2003. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(d) Had the Distributor not waived a portion of expenses, total return would
have been reduced.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
(h) Amount represents voluntary waivers of service and distribution fees.
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS D SHARES 2004 2003 (a) 2002 (b)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $12.25 $12.50 $12.52
- ---------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.21 0.27 0.07
Net realized and unrealized gain (loss) on investments 0.55 (0.23) 0.07
------------ ------------ ------------
Total from investment operations 0.76 0.04 0.14
- ---------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.21) (0.28) (0.07)
From net realized gains (0.14) (0.01) (0.09)
------------ ------------ ------------
Total distributions (0.35) (0.29) (0.16)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $12.66 $12.25 $12.50
Total return (d)(e)(f) 6.28% 0.32% 1.14%
- ---------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $805 $700 $488
Ratio of expenses to average net assets (g)(h) 1.36% 1.43% 1.32%
Ratio of net investment income to average net assets (g)(h) 3.35% 3.30% 3.71%
Waiver (h)(i) 0.35% 0.35% 0.35%
Portfolio turnover rate 7%(f) 10%(f) 21%
- ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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
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 service and distribution fees.
189
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA OREGON MUNICIPAL BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED YEAR ENDED DECEMBER 31,
FEBRUARY 29, AUGUST 31, ---------------------------------------------------------------
CLASS Z SHARES 2004 2003 (a) 2002 (b) 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $12.25 $12.50 $12.08 $12.13 $11.56 $12.46 $12.47
- ----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.25(c) 0.34(c) 0.55(c) 0.57(d) 0.58 0.56 0.58
Net realized and unrealized
gain (loss) on investments 0.56 (0.23) 0.54 (0.02)(d) 0.58 (0.88) 0.10
--------- --------- --------- --------- --------- --------- ---------
Total from investment operations 0.81 0.11 1.09 0.55 1.16 (0.32) 0.68
- ----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.26) (0.35) (0.55) (0.57) (0.58) (0.56) (0.58)
From net realized gains (0.14) (0.01) (0.12) (0.03) (0.01) (0.02) (0.11)
--------- --------- --------- --------- --------- --------- ---------
Total distributions (0.40) (0.36) (0.67) (0.60) (0.59) (0.58) (0.69)
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $12.66 $12.25 $12.50 $12.08 $12.13 $11.56 $12.46
Total return (e) 6.65%(f) 0.83%(f) 9.24% 4.55% 10.28% (2.65)% 5.58%
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $481,425 $485,427 $508,865 $491,638 $436,544 $409,919 $462,809
Ratio of expenses to average
net assets (g) 0.65%(h) 0.68%(h) 0.58% 0.57% 0.58% 0.57% 0.58%
Ratio of net investment income
to average net assets (g) 4.07%(h) 4.13%(h) 4.45% 4.64%(d) 4.92% 4.64% 4.60%
Portfolio turnover rate 7%(f) 10%(f) 21% 14% 22% 28% 17%
- ----------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were renamed 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.
190
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA HIGH YIELD FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS A SHARES 2004 2003 (a) 2002 (b)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $8.49 $8.37 $8.17
- ---------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.24 0.33 0.09
Net realized and unrealized gain on investments 0.30 0.15 0.20
------------ ------------ ------------
Total from investment operations 0.54 0.48 0.29
- ---------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.26) (0.36) (0.09)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $8.77 $8.49 $8.37
Total return (d)(e) 6.48% 5.81% 3.50%
- ---------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $288,249 $193,267 $33,992
Ratio of expenses to average net assets (f)(g) 1.00% 1.07% 1.15%
Ratio of net investment income to average net assets (f)(g) 5.64% 5.82% 6.46%
Portfolio turnover rate 14%(e) 38%(e) 42%
- ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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.
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS B SHARES 2004 2003 (a) 2002 (b)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $8.49 $8.37 $8.17
- ---------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.21 0.28 0.07
Net realized and unrealized gain on investments 0.30 0.15 0.20
------------ ------------ ------------
Total from investment operations 0.51 0.43 0.27
- ---------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.23) (0.31) (0.07)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $8.77 $8.49 $8.37
Total return (d)(e) 6.06% 5.20% 3.33%
- ---------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $106,288 $89,950 $16,701
Ratio of expenses to average net assets (f)(g) 1.78% 1.94% 1.90%
Ratio of net investment income to average net assets (f)(g) 4.86% 4.93% 5.71%
Portfolio turnover rate 14%(e) 38%(e) 42%
- ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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.
191
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA HIGH YIELD FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
PERIOD ENDED
FEBRUARY 29,
CLASS C SHARES 2004 (a)
- -------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $8.64
- -------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b) 0.15
Net realized and unrealized gain on investments 0.16
------------
Total from investment operations 0.31
- -------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.18)
- -------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $8.77
Total return (c)(d)(e) 3.58%
- -------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $14,450
Ratio of expenses to average net assets (f)(g) 1.60%
Ratio of net investment income to average net assets (f)(g) 4.62%
Waiver (g)(h) 0.15%
Portfolio turnover rate 14%(e)
- -------------------------------------------------------------------------
(a) Class C shares were initially offered on October 13, 2003. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(d) Had the Distributor not waived a portion of expenses, total return would
have been reduced.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
(h) Amount represents voluntary waivers of service and distribution fees.
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, AUGUST 31, DECEMBER 31,
CLASS D SHARES 2004 2003 (a) 2002 (b)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $8.49 $8.37 $8.17
- ---------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.22 0.29 0.07
Net realized and unrealized gain on investments 0.30 0.15 0.20
------------ ------------ ------------
Total from investment operations 0.52 0.44 0.27
- ---------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.24) (0.32) (0.07)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $8.77 $8.49 $8.37
Total return (d)(e)(f) 6.15% 5.35% 3.35%
- ---------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $107,351 $103,559 $18,035
Ratio of expenses to average net assets (g)(h) 1.61% 1.73% 1.75%
Ratio of net investment income to average net assets (g)(h) 5.04% 5.12% 5.86%
Waiver (h)(i) 0.15% 0.15% 0.15%
Portfolio turnover rate 14%(f) 38%(f) 42%
- ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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
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 service and distribution fees.
192
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA HIGH YIELD FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED YEAR ENDED DECEMBER 31,
FEBRUARY 29, AUGUST 31, ----------------------------------------------------------
CLASS Z SHARES 2004 2003 (a) 2002 (b) 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $8.49 $8.37 $8.87 $8.98 $9.32 $9.84 $10.04
- ----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.25(c) 0.35(c) 0.57(c) 0.67(d) 0.75 0.74 0.76
Net realized and unrealized
gain (loss) on investments 0.30 0.15 (0.48) (0.09)(d) (0.34) (0.51) (0.15)
----------- ----------- --------- --------- -------- -------- --------
Total from investment operations 0.55 0.50 0.09 0.58 0.41 0.23 0.61
- ----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.27) (0.38) (0.59) (0.69) (0.75) (0.74) (0.76)
From net realized gains -- -- -- -- -- (0.01) (0.05)
----------- ----------- --------- --------- -------- -------- --------
Total distributions (0.27) (0.38) (0.59) (0.69) (0.75) (0.75) (0.81)
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $8.77 $8.49 $8.37 $8.87 $8.98 $9.32 $9.84
Total return (e) 6.60%(f) 6.04%(f) 1.17% 6.63% 4.61% 2.38% 6.26%
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $1,361,644 $1,197,340 $702,785 $238,994 $97,575 $71,678 $57,524
Ratio of expenses to average
net assets (g) 0.76%(h) 0.82%(h) 0.77% 0.85% 0.93% 0.91% 0.95%
Ratio of net investment income
to average net assets (g) 5.89%(h) 6.19%(h) 6.84% 7.47%(d) 8.22% 7.71% 7.52%
Portfolio turnover rate 14%(f) 38%(f) 42% 69% 50% 49% 79%
- ----------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were renamed 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 $0.02, decrease net realized and unrealized loss per
share by $0.02 and decrease the ratio of net investment income to average
net assets from 7.64% to 7.47%. Per share data and ratios for periods prior
to December 31, 2001 have not been restated to reflect this change in
presentation.
(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.
193
FINANCIAL HIGHLIGHTS____________________________________________________________
COLUMBIA DAILY INCOME COMPANY
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED YEAR ENDED DECEMBER 31,
FEBRUARY 29, AUGUST 31, -----------------------------------------------------------------
CLASS Z SHARES 2004 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 $1.000
- ----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.002(c) 0.004(c) 0.012(c) 0.036 0.058 0.046 0.050
- ----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.002) (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 $1.000
Total return (d) 0.17%(e) 0.40%(e) 1.17% 3.70% 6.00% 4.71% 5.09%
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $749,702 $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) 0.71%(g) 0.69%(g) 0.60% 0.60% 0.60% 0.64% 0.62%
Ratio of net investment income
to average net assets (f) 0.34%(g) 0.53%(g) 1.16% 3.61% 5.82% 4.61% 4.97%
- ----------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were renamed 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.
194
SHAREHOLDER MEETING RESULTS_____________________________________________________
COLUMBIA FUNDS
On October 7, 2003, a Special Meeting of Shareholders of the Columbia Funds was
held to conduct a vote for and against the approval of the Items listed on the
Proxy Statement for said meeting. The Items listed on the Proxy Statement were
as follows:
PROPOSAL 1.
NOMINATION AND ELECTION OF THE FOLLOWING DIRECTORS:
Douglas A. Hacker, Janet Langford Kelly, Richard W. Lowry, William E.
Mayer, Charles R. Nelson, John J. Neuhauser, Joseph R. Palombo, Patrick
J. Simpson, Thomas E. Stitzel, Thomas C. Theobald, Anne-Lee Verville
and Richard L. Woolworth.
PROPOSALS 2., 3., AND 4.
To change the names of the following funds:
FOR AGAINST ABSTAIN
- ------------------------------------------------------------------------------------------------
Columbia Special Fund, Inc.
to Columbia Mid Cap Growth Fund, Inc. 30,220,048.33 802,849.77 1,243,825.21
Columbia Strategic Value Fund, Inc.
to Columbia Strategic Investor Fund, Inc. 9,650,683.60 638,426.16 408,254.92
Columbia Small Cap Fund, Inc.
to Columbia Small Cap Growth Fund, Inc. 15,474,423.84 96,331.13 299,811.38
195
IMPORTANT INFORMATION ABOUT THIS REPORT_________________________________________
COLUMBIA FUNDS
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 funds mail 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 Funds.
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 funds and with the most recent copy of
the Columbia Funds Performance Update.
A description of the policies and procedures that the funds use to determine how
to vote proxies relating to their portfolio securities is available (i) without
charge, upon request, by calling 800-345-6611 and (ii) on the Securities and
Exchange Commission's website at http://www.sec.gov.
196
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197
[Image of 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 FUNDS SEMIANNUAL REPORT, FEBRUARY 29, 2004
PRSRT STD
U.S. Postage
PAID
Holliston, MA
Permit NO. 20
[Eagle head Logo]
COLUMBIA FUNDS
A Member of Columbia Management Group
(C)2004 Columbia Funds Distributor, Inc.
One Financial Center, Boston, MA 02111-2621
800.426.3750 www.columbiafunds.com
COL-03/317R-0204 (04/04) 04/0855
ITEM 2. CODE OF ETHICS.
Not applicable at this time.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable at this time.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable at this time.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS
Not 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.
The registrant has not filed Schedule 14A subsequent to the effective date of
that Schedule's Item 7(d)(2)(ii)(G). However, it is the registrant's policy to
consider candidates for the Board of Trustees/Directors who are recommend by
shareholders. A Fund shareholder who wishes to nominate a candidate to the Board
may send information regarding prospective candidates to the Fund's Governance
Committee, care of the Fund's Secretary. The information should include evidence
of the shareholder's Fund ownership, a full listing of the proposed candidate's
education, experience, current employment, date of birth, names and addresses of
at least three professional references, information as to whether the candidate
is not an "interested person" under the 1940 Act and "independent" under NYSE
Listing Standards in relation to the Fund, and such other information as may be
helpful to the independent trustees/directors in evaluating the candidate. All
satisfactorily completed information packages regarding a candidate will be
forwarded to an independent trustee/director for consideration.
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 Real Estate Equity Fund, Inc.
-----------------------------------------------------------
By (Signature and Title) /s/ J. Kevin Connaughton
----------------------------------------------
J. Kevin Connaughton, President and Treasurer
Date May 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 May 6, 2004
-------------------------------------------------------------------