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 811-4978
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Columbia Funds Trust XI
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(Exact name of registrant as specified in charter)
One Financial Center, Boston, Massachusetts 02111
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(Address of principal executive offices) (Zip code)
Vincent Pietropaolo, Esq.
Columbia Management Group, Inc.
One Financial Center
Boston, MA 02111
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(Name and address of agent for service)
Registrant's telephone number, including area code: 1-617-772-3698
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Date of fiscal year end: September 30, 2004
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Date of reporting period: March 31, 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 DIVIDEND
INCOME FUND
Semiannual Report
March 31, 2004
[photo of woman sitting and reading]
[LOGO]:
COLUMBIA FUNDS
A MEMBER OF COLUMBIA MANAGEMENT GROUP
Table of Contents
Fund Profile ............................... 1
Performance Information .................... 2
Economic Update ............................ 3
Portfolio Managers' Report ................. 4
Financial Statements ....................... 6
Investment Portfolio .................... 7
Statement of Assets and Liabilities .....11
Statement of Operations .................12
Statement of Changes in Net Assets ......13
Notes to Financial Statements ...........16
Financial Highlights ....................21
Important Information
About This Report ..........................27
Columbia Funds .............................28
Economic and market conditions change frequently. There is no assurance that the
trends described in this report will continue or commence.
NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
TO OUR FELLOW SHAREHOLDERS
Columbia Dividend Income Fund
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
intends to deliver additional research and management capabilities, as well as
new products to you.
There are no immediate changes planned for fund names 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 requires 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 want you to know that all of the members of your fund's Board of Trustees are
independent of the fund's advisor and its affiliates. In addition, the board has
been energetic over the past year in strengthening its capacity to oversee the
Columbia funds. Recently, the Board of Trustees:
o APPOINTED A CHIEF COMPLIANCE OFFICER OF THE COLUMBIA FUNDS, WHO REPORTS
DIRECTLY TO EACH FUND'S AUDIT COMMITTEE. TRUSTEES WERE ALSO ASSIGNED TO FOUR
SEPARATE INVESTMENT OVERSIGHT COMMITTEES, EACH DEDICATED TO MONITORING
PERFORMANCE OF INDIVIDUAL FUNDS.
o VOTED TO DOUBLE THE REQUIRED INVESTMENT BY EACH TRUSTEE IN THE COLUMBIA FUNDS
-- TO FURTHER ALIGN THE INTERESTS OF THE TRUSTEES WITH THOSE OF OUR FUND
SHAREHOLDERS. AT THE SAME TIME, NEW POLICIES WERE INSTITUTED REQUIRING ALL
INVESTMENT PERSONNEL AND TRUSTEES TO HOLD THEIR COLUMBIA FUND SHARES FOR A
MINIMUM OF ONE YEAR (UNLESS EXTRAORDINARY CIRCUMSTANCES WARRANT AN EXCEPTION
TO BE GRANTED BY SENIOR EXECUTIVES OF THE ADVISOR FOR INVESTMENT PERSONNEL
AND BY A DESIGNATED COMMITTEE FOR THE BOARD).
Both your fund's trustees 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 during the period and the performance of your Columbia fund. These
discussions are followed by financial statements for your fund. We hope that you
will take time to read this report and discuss it with your financial advisor if
you have any questions.
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 Trustees President, Columbia Funds
J. Kevin Connaughton was named president of Columbia Funds on February 27, 2004.
Fund Profile
Columbia Dividend Income Fund
The information below gives you a snapshot of your fund at the end of the
reporting period. Your fund is actively managed and the composition of its
portfolio will change over time.
Top 10 holdings as of 03/31/04 (%)
- ----------------------------------------------
Citigroup 5.1
Exxon Mobil 3.4
ConocoPhillips 3.1
BP PLC 3.1
US Bancorp 3.1
Verizon Communications 2.7
JP Morgan Chase 2.5
Public Service Enterprise
Group 2.4
National City 2.4
SBC Communications 2.3
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Top 5 sectors as of 03/31/04 (%)
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Financials 32.0
Energy 14.0
Industrials 10.5
Consumer staples 8.7
Telecommunication services 7.0
==============================================
Sector breakdown and portfolio holdings are calculated as a percentage of net
assets.
(C)2004 Morningstar, Inc. All Rights Reserved. The information contained herein:
(1) is proprietary to Morningstar and/or its content providers; (2) may not be
copied or distributed; and (3) is not warranted to be accurate, complete or
timely. Neither Morningstar nor its content providers are responsible for any
damages or losses arising from any use of this information. Past performance is
no guarantee of future results.
The Morningstar Style Box(TM) reveals a fund's investment strategy. For equity
funds the vertical axis shows the market capitalization of the stocks owned and
the horizontal axis shows investment style (value, blend or growth). For
fixed-income funds the vertical axis shows the average credit quality of the
bonds owned, and the horizontal axis shows interest rate sensitivity as measured
by a bond's duration (short, intermediate or long). All of these numbers are
drawn from the data most recently provided by the fund and entered into
Morningstar's database as of month-end. Although the data is gathered from
reliable sources, Morningstar cannot guarantee completeness and accuracy. As of
03/31/2004.
[SIDEBAR DATA]:
Summary
o For the six-month period that ended March 31, 2004, the fund's class A shares
returned 15.26% without sales charge.
o The fund was slightly ahead of the average return of its peer group, the
Lipper Equity Income Funds Category. The fund's return was below its
benchmark, the Russell 1000 Value Index.
o A favorable environment for stocks helped the fund generate a double-digit
return. The move toward dividend-paying securities further enhanced
performance, especially during the second half of the reporting period.
Class A shares Russell 1000 Value Index
15.26% 17.65%
artwork: arrow up artwork: arrow up
Objective
Seeks current income and
capital appreciation
Total net assets
$199.8 million
Morningstar style box
Style/Value
Size/Large
1
Performance Information
Columbia Dividend Income Fund
Value of a $10,000 investment 03/04/98 - 03/31/04
Class A shares Class A shares Russell 1000
without sales charge with sales charge Value Index S&P 500 Index
03/1998 $10,000 $ 9,425 $10,000 $10,000
10,230 9,642 10,565 10,530
10,170 9,585 10,636 10,636
9,760 9,199 10,478 10,453
9,635 9,081 10,612 10,878
9,425 8,883 10,426 10,763
7,864 7,412 8,874 9,206
8,555 8,063 9,384 9,796
9,625 9,071 10,111 10,593
9,835 9,269 10,582 11,235
10,262 9,672 10,942 11,882
10,302 9,710 11,030 12,379
10,072 9,492 10,874 11,994
10,489 9,885 11,099 12,473
11,351 10,698 12,136 12,956
11,431 10,774 12,002 12,650
11,693 11,021 12,350 13,352
11,251 10,604 11,988 12,936
10,759 10,141 11,544 12,872
10,097 9,516 11,141 12,520
9,936 9,365 11,783 13,312
9,885 9,317 11,691 13,582
10,266 9,676 11,747 14,382
9,876 9,308 11,364 13,660
9,704 9,146 10,519 13,402
11,088 10,450 11,803 14,713
11,191 10,548 11,666 14,270
11,409 10,753 11,788 13,978
10,965 10,335 11,250 14,323
10,839 10,216 11,390 14,099
11,460 10,801 12,024 14,975
11,481 10,821 12,134 14,184
12,033 11,341 12,433 14,125
11,665 10,994 11,971 13,012
12,549 11,828 12,571 13,075
13,644 12,859 12,619 13,540
13,227 12,467 12,268 12,305
12,856 12,117 11,835 11,525
13,677 12,891 12,415 12,420
13,856 13,060 12,694 12,503
13,565 12,785 12,413 12,200
13,530 12,752 12,386 12,080
12,804 12,067 11,890 11,324
11,590 10,923 11,053 10,409
11,935 11,249 10,958 10,608
12,971 12,225 11,594 11,421
13,555 12,775 11,868 11,522
13,135 12,379 11,777 11,353
13,160 12,403 11,795 11,134
13,737 12,947 12,353 11,553
13,502 12,726 11,930 10,853
13,317 12,552 11,989 10,773
12,168 11,468 11,301 10,006
11,081 10,444 10,250 9,226
11,218 10,573 10,328 9,286
9,759 9,198 9,180 8,277
10,564 9,956 9,860 9,005
11,237 10,590 10,481 9,535
10,759 10,140 10,026 8,976
10,449 9,848 9,783 8,741
9,879 9,311 9,522 8,609
9,882 9,313 9,538 8,693
10,616 10,005 10,378 9,409
11,449 10,791 11,048 9,905
11,700 11,027 11,186 10,032
11,612 10,944 11,353 10,208
11,775 11,098 11,530 10,408
11,611 10,943 11,417 10,297
12,037 11,345 12,116 10,880
12,125 11,428 12,281 10,976
13,028 12,279 13,037 11,551
13,179 12,422 13,266 11,763
13,469 12,695 13,550 11,927
03/2004 13,379 12,610 13,429 11,742
All results shown assume reinvestment of distributions. The graph and the table
do not reflect the deduction of taxes that a shareholder would pay on fund
distributions or redemption of fund shares. The Russell 1000 Value Index
measures the performance of those Russell 1000 companies with lower
price-to-book ratios and lower forecasted growth values. The Standard & Poor's
(S&P) 500 Index is an unmanaged index that tracks the performance of 500 widely
held, large-capitalization US stocks. The S&P 500 Index was the fund's previous
benchmark. Unlike mutual funds, indices are not investments, do not incur fees
or expenses and are not professionally managed. It is not possible to invest
directly in an index. Securities in the fund may not match those in an index.
Index information is from March 4, 1998.
Average annual total return as of 03/31/04 (%)
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Share class A B C G T Z
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Inception 11/25/02 11/25/02 11/25/02 03/04/98 03/04/98 03/04/98
===================================================================================================================
Sales charge without with without with without with without with without with without
===================================================================================================================
6-month (cumulative) 15.26 8.69 14.74 9.74 14.75 13.75 14.73 9.73 15.20 8.63 15.45
1-year 35.44 27.72 34.20 29.20 34.24 33.24 34.34 29.34 35.31 27.60 35.80
5-year 4.99 3.75 4.20 3.86 4.18 4.18 4.17 3.66 4.97 3.73 5.46
Life 4.91 3.89 4.23 4.10 4.22 4.22 4.21 4.07 4.89 3.87 5.39
===================================================================================================================
All results shown assume reinvestment of distributions. The "with sales charge"
returns include the maximum 5.75% sales charge for class A shares, the
appropriate class B contingent deferred sales charge for the holding period
after purchase as follows: through first year - 5%, second year - 4%, third year
- - 3%, fourth year - 3%, fifth year - 2%, sixth year - 1%, thereafter - 0%, and
the class C contingent deferred sales charge of 1% for the first year only. For
class G shares, the contingent deferred sales charge for the holding period
after purchase is as follows: through the first year - 5%, second year - 4%,
third year - 4%, fourth year - 4%, fifth year - 3%, sixth year - 2%, seventh
year - 1%, thereafter - 0%. For the class T shares, the "with sales charge"
returns include the maximum 5.75% sales charge. Performance for different share
classes will vary based on differences in sales charges and fees associated with
each class.
Performance results reflect any voluntary waivers or reimbursement of fund
expenses by the advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower.
Class A, class B and class C are newer classes of shares. Their performance
information includes returns of the fund's class T shares (for class A) and
class G shares (for class B and class C) for periods prior to their inception.
The returns shown for class T and G shares include the returns of Retail A
Shares (for class T) and Retail B Shares (for class G) of the Galaxy fund for
periods prior to November 25, 2002, the date on which class A, B and C shares
were initially offered by the Fund and the date the Galaxy fund merged into the
existing fund. The returns have not been restated to reflect any differences in
expenses between the predecessor shares and the newer classes of shares. If
differences in expenses had been reflected, the returns shown for periods prior
to the inception of the newer classes of shares would have been lower. The
returns for class G and class T shares include the returns of Retail A Shares
(for class T shares) and Retail B Shares (for class G shares) of the Galaxy fund
for periods prior to November 25, 2002, the date on which class T and class G
shares were initially offered by the fund. Retail A Shares and Retail B Shares
of the Galaxy fund were initially offered on March 4, 1998. The returns for
class Z shares include returns of Trust shares of the Galaxy fund for periods
prior to November 25, 2002, the date on which class Z shares were initially
offered by the fund. Trust Shares were initially offered by the Galaxy fund on
March 4, 1998.
[SIDEBAR DATA]:
Performance of a $10,000 investment
03/04/98 - 03/31/04 ($)
- ----------------------------------------------
sales charge: without with
==============================================
Class A 13,379 12,610
Class B 12,863 12,763
Class C 12,850 12,850
Class G 12,846 12,746
Class T 13,365 12,597
Class Z 13,753 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.
2
Economic Update
Columbia Dividend Income Fund
The US economy moved ahead during the six-month reporting period that began
October 1, 2003 and ended March 31, 2004. A burst of strength in the third
quarter of 2003, for which annualized GDP was reported at 8.2%, was followed by
fourth quarter growth of 4.1%. GDP growth for first quarter of 2004 was 4.2%
Although job growth was slow to catch on, the economy showed signs of
improvement on all fronts. Consumer spending rose as a sizeable package of tax
cuts, implemented in 2003, gave disposable income a boost. Low interest rates
spurred a new round of mortgage refinancing late in the period, which further
enhanced household income. Consumer confidence slipped late in the period as the
outlook for the labor market remained clouded despite a significant pick-up in
the number of new jobs added to the labor market in March. Nevertheless, housing
and retail sales showed steady gains throughout the period.
After two years of holding back on spending, the business sector began to show
signs of improvement late in 2003. Business spending on technology-related items
rose as corporate profits improved. Spending on capital equipment also picked
up.
US STOCKS HEADED HIGHER
The US stock market snapped a three-year losing streak in 2003, but its rate of
return slowed early in 2004 in response to a mixed job outlook and renewed fears
concerning terrorism. The S&P 500 Index returned 14.08% for this six-month
period as most sectors of the market continued to benefit from rising corporate
profits. Small company stocks were even stronger. The Russell 2000 Index, which
measures small-cap stock performance, returned 21.69% for the period.
BONDS DELIVERED RESPECTABLE GAINS
A growing economy continued to boost investor enthusiasm for high-yield bonds,
which led the fixed-income markets during the period. The six-month return for
the Merrill Lynch US High Yield, Cash Pay Index was 8.21%. However, high-yield
bonds slipped in the second half of this reporting period. US Treasury bonds
gained ground and other segments of the bond market also delivered respectable
gains as interest rates declined. The Lehman Brothers Aggregate Bond Index, a
broad measure of investment-grade bond performance, returned 2.98%. However,
money market fund yields remained below 1%, as the Federal Reserve kept
short-term interest rates at their historical lows.
[SIDEBAR DATA]:
Summary
For the six-month period
ended March 31, 2004
o The US stock market benefited from a pick-up in economic growth and an
increase in corporate profits. Small-cap stocks led the way. The S&P 500
Index and the Russell 2000 Index posted double-digit returns this period.
S&P 500 Index Russell Index
14.08% 21.69%
artwork: arrow up artwork: arrow up
o Performance in the fixed-income universe was led by high-yield bonds. As
measured by the Merrill Lynch US High Yield, Cash Pay Index, this sector
posted a return more than five percentage points higher than the return for
investment-grade bonds, as measured by the Lehman Brothers Aggregate Bond
Index.
Merrill Lynch Index Lehman Index
8.21% 2.98%
artwork: arrow up artwork: arrow up
The S&P 500 Index is an unmanaged index that tracks the performance of 500
widely held, large capitalization US stocks.
The Russell 2000 Index is an unmanaged market capitalization weighted index that
tracks the performance of 2000 small companies.
The Merrill Lynch US High Yield, Cash Pay Index is an unmanaged index that
tracks the performance of non-investment-grade corporate bonds.
The Lehman Brothers Aggregate Bond Index is a market value-weighted index that
tracks fixed-rate, publicly placed, dollar-denominated, and non-convertible
investment grade debt issues.
3
Portfolio Managers' Report
Columbia Dividend Income Fund
For the six-month period ended March 31, 2004, class A shares of Columbia
Dividend Income Fund returned 15.26% without sales charge. The fund's
performance was lower than its benchmark, the Russell 1000 Value Index, which
returned 17.65% for the same period. The fund was slightly ahead of the average
return of the Lipper Equity Income Funds Category, which was 15.02%.(1) A
favorable environment for stocks helped the fund generate double-digit
performance. A shift in strategy to emphasize dividends as a component of total
return further aided performance, especially in the final months of the period.
THE FUND'S TIMELY TRANSFORMATION
As the period began, the fund was in the process of redefining its investment
approach. Effective October 27, 2003, the Board of Trustees changed the fund's
investment goal to seek current income and capital appreciation. In the first
two months of the period, the move toward dividend-paying securities caused the
fund to underperform. Investors were more interested in speculative companies
and their turnaround potential in an economic recovery. This investment theme
was dominant throughout most of 2003. However, by December 1, at which time the
fund's transformation was complete, investors began to shift away from these
lower-quality companies, and the relative performance of high quality,
dividend-paying stocks improved dramatically. The March dividend was increased
from $0.022 to $0.061 for Class A shares.
RESHAPING THE FUND
During the period, we sold our positions in non dividend-paying
stocks such as Accenture and Celestica. We used the proceeds to invest
in companies with the ability to generate high levels of free cash flow. Cash
flow is the amount of net cash a company generates, including depreciation, but
after subtracting taxes. This orientation led us to the tobacco group, where we
bought Altria Group (the former Philip Morris), R.J. Reynolds Tobacco Holdings
and UST, each of which yielded over 5% during the period. Among our energy
holdings, we cut back on oil service stocks in favor of integrated oil companies
such as Exxon Mobil and British Petroleum. We bolstered our positions in
insurance stocks, which typically feature high dividend yields and relatively
low valuations. We also diversified our holdings in real estate investment
trusts (REITs) away from office properties and into residential and mixed REITs
such as AvalonBay Communities, Vornado Realty Trust and Kimco Realty.
BENEFITING FROM THE NEW TAX LAW
The fund benefited from corporate America's increasing comfort with higher
dividend payouts. When taxes on corporate dividends were
1 Lipper Inc., a widely respected data provider in the industry, calculates an
average total return for mutual funds with similar investment objectives as
those of the fund.
[SIDEBAR DATA]:
Net asset value per share
as of 03/31/04 ($)
- ----------------------------------------------
Class A 10.56
Class B 10.35
Class C 10.34
Class G 10.34
Class T 10.56
Class Z 10.56
==============================================
Distributions declared per share
as of 10/01/03 - 03/31/04 ($)
- ----------------------------------------------
Class A 0.11
Class B 0.07
Class C 0.07
Class G 0.06
Class T 0.10
Class Z 0.13
==============================================
Holdings discussed in this report
as of 03/31/04 (%)
- ----------------------------------------------
Altria Group 1.5
R.J. Reynolds Tobacco
Holdings 0.7
UST 0.3
Exxon Mobil 3.4
BP PLC 3.1
AvalonBay Communities 0.5
Vornado Realty Trust 0.6
Kimco Realty 0.6
PepsiCo 1.1
Waste Management 2.1
==============================================
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.
4
Columbia Dividend Income Fund
reduced sharply in the summer of 2003, many companies concluded that increasing
their dividends represented a more effective use of capital than repurchasing
their shares. Many major companies, including fund holdings PepsiCo and Waste
Management, soon announced significant increases in their payout levels.
We believe that these dividend increases by major firms are part of a long-term
trend toward higher payouts. Companies in the S&P 500 now pay out, on average,
only 34% of their earnings as dividends. We would not be surprised to see a
return to the historical range of 45-50%.
PREPARING FOR THE NEXT STAGE OF THE ECONOMIC CYCLE
Investors should be aware that the economic recovery may be entering a new
phase. During the past several quarters, corporate margins have expanded
rapidly, as businesses have increased their production and built back their
inventories from depleted levels. At this point, however, we doubt that margins
have the potential to go much higher, suggesting that the rate of earnings
growth in the next few quarters may not match that of the year gone by. In such
an environment, dividends could assume greater importance as a component of
total return, a setting that is potentially favorable to the fund.
[PHOTO]: Scott Davis
Scott Davis has co-managed Columbia Dividend Income Fund since November 2001 and
has been with the advisor and its predecessors since 1985.
/s/ Scott Davis
[PHOTO]: Richard Dahlberg
Richard Dahlberg, CFA, has co-managed the fund since October 2003 and has been
with the advisor since September 2003.
/s/ Richard Dahlberg
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.
Value stocks are securities of companies that may have experienced adverse
business or industry developments or may be subject to special risks that have
caused the stocks to be out of favor. If the advisor's assessment of a company's
prospects is wrong, the price of its stock may not approach the value the
advisor has placed on it.
[SIDEBAR]:
Going forward, we believe that dividends could assume greater importance as a
component of total return, a setting that could be potentially favorable to the
fund.
5
FINANCIAL STATEMENTS
March 31, 2004
Columbia Dividend Income Fund
A guide to understanding your fund's financial statements
--------------------------------------------------------------------------------------
Investment Portfolio The investment portfolio details all of the fund's holdings and their market value
as of the last day of the reporting period. Portfolio holdings are organized by type
of asset, industry, country or geographic region (if applicable) to demonstrate areas
of concentration and diversification.
--------------------------------------------------------------------------------------
Statement of Assets and Liabilities This statement details the fund's assets, liabilities, net assets and share price for
each share class as of the last day of the reporting period. 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 accrued by the fund
during the reporting period. 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) during the reporting period.
The Statement of Changes in Net Assets also details changes in the number of shares
outstanding.
--------------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------------
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 the classes' performance and certain key ratios (e.g., class expenses and
net investment income as a percentage of average net assets).
6
INVESTMENT PORTFOLIO
March 31, 2004 (unaudited)
Columbia Dividend Income Fund
Common Stocks - 98.2%
CONSUMER DISCRETIONARY - 6.2%
Shares Value ($)
- --------------------------------------------------------------------------------------------------------------------------------
Automobiles - 1.2% General Motors Corp. 50,000 2,355,000
Automobiles Total 2,355,000
------------------------------------------------------------------------------
Hotels, Restaurants & Leisure - 1.8% Harrah's Entertainment, Inc. 30,000 1,646,700
Wendy's International, Inc. 48,000 1,953,120
Hotels, Restaurants & Leisure Total 3,599,820
------------------------------------------------------------------------------
Leisure Equipment & Products - 0.9% Mattel, Inc. 100,000 1,844,000
Leisure Equipment & Products Total 1,844,000
------------------------------------------------------------------------------
Media - 1.8% Belo Corp., Class A 35,000 971,600
Clear Channel Communications, Inc. 12,000 508,200
McGraw-Hill Companies, Inc. 26,000 1,979,640
Media Total 3,459,440
------------------------------------------------------------------------------
Specialty Retail - 0.5% Limited Brands 52,000 1,040,000
Specialty Retail Total 1,040,000
------------
CONSUMER DISCRETIONARY TOTAL 12,298,260
CONSUMER STAPLES - 8.7%
- --------------------------------------------------------------------------------------------------------------------------------
Beverages - 1.1% PepsiCo, Inc. 42,000 2,261,700
Beverages Total 2,261,700
------------------------------------------------------------------------------
Food Products - 2.0% ConAgra Foods, Inc. 148,000 3,987,120
Food Products Total 3,987,120
------------------------------------------------------------------------------
Household Products - 3.1% Clorox Co. 60,000 2,934,600
Kimberly-Clark Corp. 52,000 3,281,200
Household Products Total 6,215,800
------------------------------------------------------------------------------
Tobacco - 2.5% Altria Group, Inc. 54,000 2,940,300
R.J. Reynolds Tobacco Holdings, Inc. 24,000 1,452,000
UST, Inc. 14,000 505,400
Tobacco Total 4,897,700
------------
CONSUMER STAPLES TOTAL 17,362,320
ENERGY - 14.0%
- --------------------------------------------------------------------------------------------------------------------------------
Energy Equipment & Services - 1.2% Halliburton Co. 80,000 2,431,200
Energy Equipment & Services Total 2,431,200
------------------------------------------------------------------------------
Oil & Gas - 12.8% BP PLC, ADR 122,000 6,246,400
ChevronTexaco Corp. 48,000 4,213,440
ConocoPhillips 90,000 6,282,900
Exxon Mobil Corp. 164,000 6,820,760
Royal Dutch Petroleum Co., N.Y. Registered Shares 40,000 1,903,200
Oil & Gas Total 25,466,700
------------
ENERGY TOTAL 27,897,900
See notes to investment portfolio.
7
March 31, 2004 (unaudited)
Columbia Dividend Income Fund
Common Stocks - (continued)
FINANCIALS - 32.0%
Shares Value ($)
- --------------------------------------------------------------------------------------------------------------------------------
Capital Markets - 4.8% Bank of New York Co., Inc. 78,000 2,457,000
Eaton Vance Corp. 26,000 991,120
Federated Investors, Inc., Class B 32,000 1,005,760
J.P. Morgan Chase & Co. 120,000 5,034,000
Capital Markets Total 9,487,880
------------------------------------------------------------------------------
Commercial Banks - 8.5% National City Corp. 132,000 4,696,560
U.S. Bancorp 225,000 6,221,250
Wachovia Corp. 52,000 2,444,000
Wells Fargo & Co. 64,000 3,626,880
Commercial Banks Total 16,988,690
------------------------------------------------------------------------------
Consumer Finance - 0.9% MBNA Corp. 68,000 1,878,840
Consumer Finance Total 1,878,840
------------------------------------------------------------------------------
Diversified Financial Services - 5.1% Citigroup, Inc. 198,000 10,236,600
Diversified Financial Services Total 10,236,600
------------------------------------------------------------------------------
Insurance - 7.1% Chubb Corp. 40,000 2,781,600
Lincoln National Corp. 94,000 4,448,080
Marsh & McLennan Companies, Inc. 29,000 1,342,700
Travelers Property Casualty Corp., Class B 150,000 2,590,500
Willis Group Holdings Ltd. 30,000 1,116,000
XL Capital Ltd., Class A 26,000 1,977,040
Insurance Total 14,255,920
------------------------------------------------------------------------------
Real Estate - 4.1% Archstone-Smith Trust, REIT 40,000 1,180,400
AvalonBay Communities, Inc., REIT 20,000 1,071,600
Equity Office Properties Trust, REIT 125,000 3,611,250
Kimco Realty Corp., REIT 22,000 1,121,560
Vornado Realty Trust, REIT 20,000 1,209,600
Real Estate Total 8,194,410
------------------------------------------------------------------------------
Thrifts & Mortgage Finance - 1.5% Fannie Mae 40,000 2,974,000
Thrifts & Mortgage Finance Total 2,974,000
------------
FINANCIALS TOTAL 64,016,340
HEALTH CARE - 6.0%
- --------------------------------------------------------------------------------------------------------------------------------
Health Care Providers & Services - 1.5% Aetna, Inc. 34,000 3,050,480
Health Care Providers & Services Total 3,050,480
------------------------------------------------------------------------------
Pharmaceuticals - 4.5% Abbott Laboratories 50,000 2,055,000
Bristol-Myers Squibb Co. 86,000 2,083,780
Merck & Co., Inc. 42,000 1,855,980
Pfizer, Inc. 86,000 3,014,300
Pharmaceuticals Total 9,009,060
------------
HEALTH CARE TOTAL 12,059,540
See notes to investment portfolio.
8
March 31, 2004 (unaudited)
Columbia Dividend Income Fund
Common Stocks - (continued)
INDUSTRIALS - 10.5%
Shares Value ($)
- --------------------------------------------------------------------------------------------------------------------------------
Aerospace & Defense - 4.4% Boeing Co. 24,000 985,680
Goodrich Corp. 78,000 2,189,460
Honeywell International, Inc. 88,000 2,978,800
United Technologies Corp. 30,000 2,589,000
Aerospace & Defense Total 8,742,940
------------------------------------------------------------------------------
Building Products - 1.0% Masco Corp. 70,000 2,130,800
Building Products Total 2,130,800
------------------------------------------------------------------------------
Commercial Services & Supplies - 2.1% Waste Management, Inc. 140,000 4,225,200
Commercial Services & Supplies Total 4,225,200
------------------------------------------------------------------------------
Industrial Conglomerates - 1.9% Textron, Inc. 70,000 3,720,500
Industrial Conglomerates Total 3,720,500
------------------------------------------------------------------------------
Machinery - 1.1% Deere & Co. 32,000 2,217,920
Machinery Total 2,217,920
------------
INDUSTRIALS TOTAL 21,037,360
INFORMATION TECHNOLOGY - 4.1%
- --------------------------------------------------------------------------------------------------------------------------------
Communications Equipment - 1.4% Nokia Oyj, ADR 140,000 2,839,200
Communications Equipment Total 2,839,200
------------------------------------------------------------------------------
Computers & Peripherals - 0.8% Diebold, Inc. 32,000 1,539,840
Computers & Peripherals Total 1,539,840
------------------------------------------------------------------------------
IT Services - 1.9% Automatic Data Processing, Inc. 90,000 3,780,000
IT Services Total 3,780,000
------------
INFORMATION TECHNOLOGY TOTAL 8,159,040
MATERIALS - 3.9%
- --------------------------------------------------------------------------------------------------------------------------------
Chemicals - 2.3% Air Products & Chemicals, Inc. 44,000 2,205,280
E.I. du Pont de Nemours & Co. 56,000 2,364,320
Chemicals Total 4,569,600
------------------------------------------------------------------------------
Paper & Forest Products - 1.6% MeadWestvaco Corp. 70,000 1,980,300
Weyerhaeuser Co. 18,000 1,179,000
Paper & Forest Products Total 3,159,300
------------
MATERIALS TOTAL 7,728,900
TELECOMMUNICATION SERVICES - 7.0%
- --------------------------------------------------------------------------------------------------------------------------------
Diversified Telecommunication Services - 7.0% BellSouth Corp. 140,000 3,876,600
SBC Communications, Inc. 190,000 4,662,600
Verizon Communications, Inc. 150,000 5,481,000
Diversified Telecommunication Services Total 14,020,200
------------
TELECOMMUNICATION SERVICES TOTAL 14,020,200
UTILITIES - 5.8%
- --------------------------------------------------------------------------------------------------------------------------------
Electric Utilities - 3.5% Consolidated Edison, Inc. 100,000 4,410,000
TXU Corp. 90,000 2,579,400
Electric Utilities Total 6,989,400
------------------------------------------------------------------------------
See notes to investment portfolio.
9
March 31, 2004 (unaudited)
Columbia Dividend Income Fund
Common Stocks - (continued)
UTILITIES - (continued)
Shares Value ($)
- --------------------------------------------------------------------------------------------------------------------------------
Multi-Utilities & Unregulated Power - 2.3% Public Service Enterprise Group, Inc. 100,000 4,698,000
Multi-Utilities & Unregulated Power Total 4,698,000
------------
UTILITIES TOTAL 11,687,400
------------
TOTAL COMMON STOCKS (Cost of $176,851,662) 196,267,260
Preferred Stock - 1.0%
MATERIALS - 1.0%
- --------------------------------------------------------------------------------------------------------------------------------
Metals & Mining - 1.0% Freeport-McMoRan Copper & Gold, Inc., 5.500% (a)
(Cost of $2,000,000) 2,000 1,952,500
Short-Term Obligation - 0.2%
Par($)
- --------------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with State Street
Bank & Trust Co., dated 03/31/04, due 04/01/04
at 0.960%, collateralized by a U.S. Treasury Bond
maturing 11/15/21, market value of $457,085
(repurchase proceeds $447,012) (Cost of $447,000) 447,000 447,000
Total Investments - 99.4%
(Cost of $179,298,662) (b) 198,666,760
Other Assets & Liabilities, Net - 0.6% 1,117,387
Net Assets - 100.0% 199,784,147
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 March 31, 2004, the value of
this security amounted to $1,952,500, which represents 1.0% of net assets.
(b) Cost for both financial statement and federal income tax purposes is the
same.
ACRONYM NAME
------- ----
ADR American Depositary Receipt
REIT Real Estate Investment Trust
See notes to financial statements.
10
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2004 (unaudited)
Columbia Dividend Income Fund
($)
- --------------------------------------------------------------------------------------------------------------------------------
Assets: Investments, at cost 179,298,662
-------------
Investments, at value 198,666,760
Cash 2,000,731
Receivable for:
Investments sold 828,901
Fund shares sold 782,904
Interest 12
Dividends 400,606
Deferred Trustees' compensation plan 13,235
Other assets 51,941
-------------
Total Assets 202,745,090
------------------------------------------------------------------------------
Liabilities: Payable for:
Investments purchased 1,892,559
Fund shares repurchased 793,400
Investment advisory fee 127,247
Administration fee 10,950
Transfer agent fee 76,711
Pricing and bookkeeping fees 1,121
Trustees' fees 123
Custody fee 6,496
Distribution and service fees 39,101
Deferred Trustees' fees 13,235
--------------
Total Liabilities 2,960,943
Net Assets 199,784,147
------------------------------------------------------------------------------
Composition of Net Assets: Paid-in capital 216,325,123
Overdistributed net investment income (255,946)
Accumulated net realized loss (35,653,128)
Net unrealized appreciation on investments 19,368,098
Net Assets 199,784,147
------------------------------------------------------------------------------
Class A: Net assets 5,959,196
Shares outstanding 564,400
Net asset value per share 10.56(a)
Maximum offering price per share ($10.56/0.9425) 11.20(b)
------------------------------------------------------------------------------
Class B: Net assets 5,050,438
Shares outstanding 487,733
Net asset value and offering price per share 10.35(a)
------------------------------------------------------------------------------
Class C: Net assets 1,310,799
Shares outstanding 126,715
Net asset value and offering price per share 10.34(a)
------------------------------------------------------------------------------
Class G: Net assets 7,945,488
Shares outstanding 768,060
Net asset value and offering price per share 10.34(a)
------------------------------------------------------------------------------
Class T: Net assets 104,790,681
Shares outstanding 9,922,187
Net asset value per share 10.56(a)
Maximum offering price per share ($10.56/0.9425) 11.20(b)
------------------------------------------------------------------------------
Class Z: Net assets 74,727,545
Shares outstanding 7,076,942
Net asset value, offering and redemption price per share 10.56
(a) Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
(b) On sales of $50,000 or more the offering price is reduced.
See notes to financial statements.
11
STATEMENT OF OPERATIONS
For the Six Months Ended March 31, 2004 (unaudited)
Columbia Dividend Income Fund
($)
- --------------------------------------------------------------------------------------------------------------------------------
Investment Income: Dividends 2,995,006
Interest 5,511
------------
Total Investment Income (net of foreign taxes
withheld of $17,536) 3,000,517
------------------------------------------------------------------------------
Expenses: Investment advisory fee 729,380
Administration fee 65,158
Distribution fee:
Class B 9,635
Class C 2,034
Class G 29,747
Service fee:
Class A 2,750
Class B 3,211
Class C 676
Class G 13,729
Shareholder service fee - Class T 154,258
Transfer agent fee:
Class A 2,504
Class B 2,902
Class C 621
Class G 14,292
Class T 135,737
Class Z 72,275
Pricing and bookkeeping fees 21,169
Trustees' fees 5,250
Custody fee 9,566
Other expenses 61,113
Non-recurring costs (See Note 7) 1,357
Costs asssumed by Investment Advisor (See Note 7) (1,357)
------------
Total Expenses 1,336,007
Fees waived by Transfer Agent:
Class A (107)
Class B (115)
Class C (27)
Class G (281)
Class T (5,883)
Class Z (6,347)
Custody earnings credit (112)
------------
Net Expenses 1,323,135
------------
Net Investment Income 1,677,382
------------------------------------------------------------------------------
Net Realized and Unrealized Net realized loss on investments (3,322,120)
Gain (Loss) on Investments: Net change in unrealized appreciation/depreciation
on investments 28,933,017
Net Gain 25,610,897
Net Increase in Net Assets from Operations 27,288,279
See notes to financial statements.
12
STATEMENT OF CHANGES IN NET ASSETS
Columbia Dividend Income Fund
(unaudited)
Six Months Period
Ended Ended Year Ended
March 31, September 30, October 31,
INCREASE (DECREASE) IN NET ASSETS: 2004($) 2003(a)(b)($) 2002($)
- --------------------------------------------------------------------------------------------------------------------------------
Operations: Net investment income 1,677,382 2,589,395 237,883
Net realized gain (loss)
on investments (3,322,120) (9,261,189) 12,886,804
Net change in unrealized
appreciation/depreciation
on investments 28,933,017 14,197,391 (7,411,274)
-----------------------------------------
Net Increase from Operations 27,288,279 7,525,597 5,713,413
Distributions Declared to Shareholders: From net investment income:
Class A (37,237) (3,464) --
Class B (22,411) (2,610) --
Class C (5,027) (235) --
Class G (55,416) (58,829) --
Class T (1,033,452) (1,134,919) (14,787)
Class Z (924,877) (1,326,619) (270,326)
From net realized gains:
Class G -- -- (92,957)
Class T -- -- (321,990)
Class Z -- -- (4,065,865)
-----------------------------------------
Total Distributions Declared
to Shareholders (2,078,420) (2,526,676) (4,765,925)
------------------------------------------------------------------------------
Share Transactions: Class A:
Subscriptions 5,408,238 648,541 --
Distributions reinvested 34,498 3,237 --
Redemptions (179,538) (99,798) --
-----------------------------------------
Net Increase 5,263,198 551,980 --
Class B:
Subscriptions 3,922,356 1,466,777 --
Distributions reinvested 19,710 2,480 --
Redemptions (269,128) (350,847) --
-----------------------------------------
Net Increase 3,672,938 1,118,410 --
Class C:
Subscriptions 1,327,132 743,182 --
Distributions reinvested 3,734 111 --
Redemptions (214,542) (624,830) --
-----------------------------------------
Net Increase 1,116,324 118,463 --
Class G:
Subscriptions 47,460 143,452 607,331
Proceeds received in connection
with merger -- 10,032,885 --
Distributions reinvested 54,051 56,662 92,335
Redemptions (3,037,328) (3,057,348) (449,690)
-----------------------------------------
Net Increase (Decrease) (2,935,817) 7,175,651 249,976
Class T:
Subscriptions 2,615,901 2,162,435 1,956,588
Proceeds received in connection
with merger -- 101,580,964 --
Distributions reinvested 997,974 1,097,380 334,609
Redemptions (8,823,532) (17,083,667) (2,756,097)
-----------------------------------------
Net Increase (Decrease) (5,209,657) 87,757,112 (464,900)
See notes to financial statements.
13
Columbia Dividend Income Fund
(unaudited)
Six Months Period
Ended Ended Year Ended
March 31, September 30, October 31,
2004($) 2003(a)(b)($) 2002($)
- --------------------------------------------------------------------------------------------------------------------------------
Share Transactions: Class Z:
Subscriptions 10,905,187 14,764,524 9,952,015
Proceeds received in connection
with merger -- 76,942,534 --
Distributions reinvested 205,932 306,107 3,813,095
Redemption-in-kind (c) -- -- (93,827,039)
Redemptions (19,859,400) (40,885,365) (5,698,090)
-----------------------------------------
Net Increase (Decrease) (8,748,281) 51,127,800 (85,760,019)
Net Increase (Decrease)
from Share Transactions (6,841,295) 147,849,416 (85,974,943)
Total Increase (Decrease)
in Net Assets 18,368,564 152,848,337 (85,027,455)
------------------------------------------------------------------------------
Net Assets: Beginning of period 181,415,583 28,567,246 113,594,701
End of period 199,784,147 181,415,583 28,567,246
Undistributed (overdistributed) net
investment income, at end of period (255,946) 145,092 32,838
------------------------------------------------------------------------------
Changes in Shares: Class A:
Subscriptions 517,164 72,731 --
Issued for distributions reinvested 3,357 345 --
Redemptions (17,028) (12,169) --
-----------------------------------------
Net Increase 503,493 60,907 --
Class B:
Subscriptions 388,539 164,196 --
Issued for distributions reinvested 1,957 268 --
Redemptions (27,842) (39,385) --
-----------------------------------------
Net Increase 362,654 125,079 --
Class C:
Subscriptions 131,322 86,238 --
Issued for distributions reinvested 370 12 --
Redemptions (21,684) (69,543) --
-----------------------------------------
Net Increase 110,008 16,707 --
Class G:
Subscriptions 4,686 16,877 58,075
Issued in connection with merger -- 1,137,552 --
Issued for distributions reinvested 5,398 6,525 8,802
Redemptions (306,043) (347,287) (48,228)
-----------------------------------------
Net Increase (Decrease) (295,959) 813,667 18,649
Class T:
Subscriptions 256,398 238,068 184,929
Issued in connection with merger -- 11,278,336 --
Issued for distributions reinvested 97,932 122,918 31,497
Redemptions (868,709) (1,972,609) (285,078)
-----------------------------------------
Net Increase (Decrease) (514,379) 9,666,713 (68,652)
See notes to financial statements.
14
Columbia Dividend Income Fund
(unaudited)
Six Months Period
Ended Ended Year Ended
March 31, September 30, October 31,
2004($) 2003(a)(b)($) 2002($)
- --------------------------------------------------------------------------------------------------------------------------------
Changes in Shares: Class Z:
Subscriptions 1,096,157 1,688,522 985,895
Issued in connection with merger -- 8,539,200 --
Issued for distributions reinvested 20,250 34,595 356,985
Redemption-in-kind (c) -- -- (8,728,097)
Redemptions (1,952,506) (4,674,712) (552,015)
-----------------------------------------
Net Increase (Decrease) (836,099) 5,587,605 (7,937,232)
(a) The Fund changed its fiscal year end from October 31 to September 30.
(b) Effective November 25, 2002, the Galaxy Strategic Equity Fund Retail B,
Retail A and Trust shares were reorganized as Liberty Strategic Equity Fund
Class G, Class T and Class Z shares, respectively. Subsequently, the Fund
began offering Class A, Class B and Class C shares. Effective October 13,
2003, the Liberty Strategic Equity Fund was renamed Columbia Strategic
Equity Fund. Effective October 27, 2003, the Columbia Strategic Equity Fund
was renamed Columbia Dividend Income Fund.
(c) The Fund had a redemption-in-kind on January 11, 2002, which resulted in a
redemption out of the Fund of $93,827,039. The redemption is comprised of
securities and cash in the amounts of $83,530,666 and $10,296,373,
respectively.
See notes to financial statements.
15
NOTES TO FINANCIAL STATEMENTS
March 31, 2004 (unaudited)
Columbia Dividend Income Fund
NOTE 1. ORGANIZATION
Columbia Dividend Income Fund (the "Fund"), a series of Columbia Funds Trust XI
(the "Trust"), is a diversified portfolio. The Trust is a Massachusetts business
trust registered under the Investment Company Act of 1940, as amended, as an
open-end management investment company.
Investment Goals
The Fund seeks current income and capital appreciation. Prior to October 27,
2003, the Fund's investment goal was to seek long-term capital appreciation.
Fund Shares
The Fund may issue an unlimited number of shares and offers six classes of
shares: Class A, Class B, Class C, Class G, Class T and Class Z. Each share
class has its own sales charge and 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 Z shares are offered continuously at net
asset value. There are certain restrictions on the purchase of Class Z shares,
as described in the Fund's prospectus.
On October 13, 2003, the Liberty Strategic Equity Fund was renamed Columbia
Strategic Equity Fund. Also on this date, the Liberty-Stein Roe Investment Trust
was renamed Columbia Funds Trust XI. On October 27, 2003, the Columbia Strategic
Equity Fund was renamed Columbia Dividend Income Fund.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America ("GAAP") requires management
to make estimates and assumptions that affect the reported amounts of assets and
liabilities, the disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenue and expenses during
the reporting period. Actual results could differ from those estimates. The
following is a summary of significant accounting policies consistently followed
by the Fund in the preparation of its financial statements.
Security Valuation
Equity securities are valued at the last sale price at the close of the
principal exchange on which they trade. Unlisted securities or listed securities
for which there were no sales during the day are valued at the closing bid price
on such exchanges or over-the-counter markets.
Short-term debt obligations maturing within 60 days are valued at amortized
cost, which approximates market value.
Investments for which market quotations are not readily available, or quotations
which management believes are not appropriate, are valued at fair value as
determined in good faith under consistently applied procedures established by
and under the general supervision of the Board of Trustees.
Security Transactions
Security transactions are accounted for on the trade date. Cost is determined
and gains (losses) are based upon the specific identification method for both
financial statement and federal income tax purposes.
Repurchase Agreements
The Fund may engage in repurchase agreement transactions with institutions that
the Fund's investment advisor has determined are creditworthy. The Fund, through
its custodian, receives delivery of underlying securities collateralizing a
repurchase agreement. Collateral is at least equal, at all times, to the value
of the repurchase obligation including
16
March 31, 2004 (unaudited)
Columbia Dividend Income Fund
interest. A repurchase agreement transaction involves certain risks in the event
of default or insolvency of the counterparty. These risks include possible
delays or restrictions upon the Fund's ability to dispose of the underlying
securities and a possible decline in the value of the underlying securities
during the period while the Fund seeks to assert its rights.
Income Recognition
Interest income is recorded on the accrual basis. Corporate actions and dividend
income are recorded on the ex-date.
Determination of Class Net Asset Values
All income, expenses (other than class-specific expenses, as shown on the
Statement of Operations) and realized and unrealized gains (losses), are
allocated to each class of the Fund on a daily basis, based on the relative net
assets of each class, for purposes of determining the net asset value of each
class.
Federal Income Tax Status
The Fund intends to qualify each year as a "regulated investment company" under
Subchapter M of the Internal Revenue Code, as amended, and will distribute
substantially all of its taxable income, if any, for its tax year, and as such
will not be subject federal income taxes. In addition, by distributing in each
calendar year substantially all of its net investment income, capital gains and
certain other amounts, if any, the Fund will not be subject to federal excise
tax. Therefore, no federal income or excise tax provision is recorded.
Distributions to Shareholders
Distributions to shareholders are recorded on ex-date. Net realized capital
gains, if any, are distributed at least annually.
Note 3. Federal Tax Information
The tax character of distributions paid during the period ended September 30,
2003 and the year ended October 31, 2002 was as follows:
Long-Term
Ordinary Income Capital Gains
================================================================================
September 2003 $2,526,676 $ --
October 2002 1,124,772 3,641,153
================================================================================
Unrealized appreciation and depreciation at March 31, 2004, based on cost of
investments for federal income tax purposes was:
================================================================================
Unrealized appreciation $ 28,766,057
Unrealized depreciation (9,397,959)
- --------------------------------------------------------------------------------
Net unrealized appreciation $ 19,368,098
================================================================================
The following capital loss carryforwards, determined as of September 30, 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 Capital Loss
Expiration Carryforward
================================================================================
2009 $20,104,156
2010 2,470,255
2011 9,095,627
- --------------------------------------------------------------------------------
$31,670,038
================================================================================
Of the capital loss carryforwards attributable to the Fund, $20,424,884
($20,104,156 expiring 9/30/09 and $320,728 expiring 9/30/10) was obtained upon
the Fund's merger with Galaxy Equity Income Fund (See Note 10).
Utilization of the Fund's capital loss carryforwards above could be subject to
limitations imposed by the Internal Revenue Code.
Expired capital loss carryforwards, if any, are recorded as a reduction of
paid-in capital.
NOTE 4. FEES AND COMPENSATION PAID TO AFFILIATES
Investment Advisory Fee
Columbia Management Advisors, Inc. ("Columbia") is the investment advisor to the
Fund. 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"). Columbia
receives a monthly investment advisory fee based on the Fund's average daily net
assets as follows:
Average Daily Net Assets Annual Fee Rate
================================================================================
First $500 million 0.75%
Next $500 million 0.70%
Next $500 million 0.65%
Next $500 million 0.60%
Over $2 billion 0.55%
================================================================================
17
March 31, 2004 (unaudited)
Columbia Dividend Income Fund
Prior to November 1, 2003, Columbia was entitled to receive a monthly investment
advisory fee at the annual rate of 0.75% of the Fund's average daily net assets.
Administration Fee
Columbia provides accounting and other services to the Fund for a monthly
administration fee at the annual rate of 0.067% of the Fund's average daily net
assets.
Pricing and Bookkeeping Fees
Columbia is responsible for providing pricing and bookkeeping services to the
Fund under a pricing and bookkeeping agreement. Under a separate agreement (the
"Outsourcing Agreement"), Columbia has delegated those functions to State Street
Corporation ("State Street"). Columbia pays the total fees collected to State
Street under the Outsourcing Agreement.
Under its pricing and bookkeeping agreement with the Fund, Columbia receives an
annual fee, in addition to fees for pricing services, based on the average daily
net assets of the Fund as follows:
Average Daily Net Assets Annual Fee Rate
================================================================================
Under $50 million $25,000
Over $50 million but less than $200 million $35,000
Over $200 million but less than $500 million $50,000
Over $500 million but less than $1 billion $85,000
Over $1 billion $125,000
================================================================================
An additional flat rate fee of $10,000 is charged to the Fund due to its
multiple class structure.
For the six months ended March 31, 2004, the Fund's annualized effective pricing
and bookkeeping fee rate was 0.022%.
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 Fund. For such services, the Transfer Agent receives
a fee, paid monthly, at the annual rate of $28.00 per open account. The Transfer
Agent also receives reimbursement for certain out-of-pocket expenses.
Prior to November 1, 2003, the Transfer Agent was entitled to receive a monthly
transfer agent fee based on a per-account charge or a minimum of $5,000
annually. The Transfer Agent was also entitled to receive reimbursement for
certain out-of-pocket expenses.
The Transfer Agent has voluntarily agreed to waive a portion of its transfer
agent fee for the Fund. This arrangement may be revised or discontinued by the
Transfer Agent at any time. For the period January 1, 2004 through March 31,
2004, the Transfer Agent waived fees of $6,362 for the Fund. For the period
October 1, 2003 through December 31, 2003, the Transfer Agent waived class
specific transfer agent fees of $2,518 and $3,880 for Class T and Class Z shares
of the Fund, respectively.
Underwriting Discounts, Service and Distribution Fees
Columbia Funds Distributor, Inc. (the "Distributor"), formerly Liberty Funds
Distributor, Inc., an indirect, wholly owned subsidiary of BOA, is the principal
underwriter of the Fund. For the six months ended March 31, 2004, the
Distributor has retained net underwriting discounts of $8,562 and $1,264 on
sales of the Fund's Class A and Class T shares, respectively. For the same
period, the Distributor received CDSC fees of $384, $115 and $12,353 on Class B,
Class C and Class G share redemptions, respectively.
The Fund has adopted a 12b-1 plan (the "Plan"), which requires the payment of a
monthly distribution and service fee to the Distributor at an annual fee rate as
follows:
Distribution Fee
================================================================================
Class A Class B Class C Class G
0.10% 0.75% 0.75% 0.65%
================================================================================
Service Fee
================================================================================
Class A Class B Class C Class G
0.25% 0.25% 0.25% 0.50%
================================================================================
The Fund does not intend to pay total distribution and service fees in excess of
0.25% and 0.95% annually for Class A and Class G shares of the Fund,
respectively.
The Fund has adopted a shareholder service plan that permits it to pay for
certain services provided to Class T and Class Z shareholders by their financial
advisor. Currently, the service plan has not been implemented with respect to
the Fund's Class Z shares. The annual service fee may equal up to 0.50% for
Class T shares.
18
March 31, 2004 (unaudited)
Columbia Dividend Income Fund
The Fund does not intend to pay more than 0.30% annually for Class T shareholder
service fees.
The CDSC and the fees received from the Plan are used principally as repayment
to the Distributor for amounts paid by the Distributor to dealers who sold such
shares.
Custody Credits
The Fund has an agreement with its custodian bank under which custody fees may
be reduced by balance credits. The Fund could have invested a portion of the
assets utilized in connection with the expense offset arrangement in an
income-producing asset if it had not entered into such an agreement.
Fees Paid to Officers and Trustees
The Fund pays no compensation to its officers, all of whom are employees of
Columbia or its affiliates.
The Fund's Trustees may participate in a deferred compensation plan which may be
terminated at any time. Obligations of the plan will be paid solely out of the
Fund's assets.
NOTE 5. PORTFOLIO INFORMATION
For the six months ended March 31, 2004, the cost
of purchases and proceeds from sales of securities, excluding short-term
obligations, were $60,530,596 and $68,859,689, respectively.
NOTE 6. LINE OF CREDIT
The Fund and other affiliated funds participate in a $350,000,000 credit
facility, which is used for temporary or emergency purposes to facilitate
portfolio liquidity. Interest is charged to the Fund based on its borrowings. In
addition, the Fund has agreed to pay commitment fees on its pro-rata portion of
the unutilized line of credit. The commitment fee is included in "Other
expenses" on the Statement of Operations. For the six months ended March 31,
2004, the Fund did not borrow under this arrangement.
NOTE 7. DISCLOSURE OF SIGNIFICANT RISKS
AND CONTINGENCIES
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
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
19
March 31, 2004 (unaudited)
Columbia Dividend Income Fund
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.
For the six months ended March 31, 2004, Columbia has assumed $1,357 of legal,
consulting services and Trustees' fees incurred by the Fund in connection with
these matters.
NOTE 8. SUBSEQUENT EVENT
On April 1, 2004, FleetBoston, including the Fund's investment advisor and
distributor, was acquired by BOA. The merger did not change the way the Fund is
managed, the investment personnel assigned to manage the Fund or the fees paid
by the Fund.
NOTE 9. COMPARABILITY OF FINANCIAL STATEMENTS
The fiscal year end of the Fund was changed from October 31 to September 30.
Accordingly, the Fund's 2004 fiscal year end will be September 30, 2004.
NOTE 10. BUSINESS COMBINATIONS AND MERGERS
As of the end of business on November 22, 2002, the Galaxy Equity Income Fund,
previously a fund of The Galaxy Fund, a separate Massachusetts business trust,
merged into Liberty Strategic Equity Fund (currently known as Columbia Dividend
Income Fund).
The Liberty Strategic Equity Fund received a tax-free transfer of assets from
Galaxy Equity Income Fund as follows:
SHARES NET ASSETS UNREALIZED
ISSUED RECEIVED DEPRECIATION(1)
----------- ----------- -----------
20,955,088 $188,556,383 $(19,625,587)
NET ASSETS OF NET ASSETS OF
NET ASSETS OF GALAXY EQUITY LIBERTY STRATEGIC
LIBERTY STRATEGIC INCOME FUND EQUITY FUND
EQUITY FUND IMMEDIATELY IMMEDIATELY
PRIOR TO PRIOR TO AFTER
COMBINATION COMBINATION COMBINATION
----------- ----------- -----------
$30,204,471 $188,556,383 $218,760,854
1 Unrealized depreciation is included in the Net Assets Received amount shown
above.
Class G, Class T and Class Z shares of the Liberty Strategic Equity Fund were
issued in exchange for Retail B, Retail A and Trust shares of Galaxy Equity
Income Fund, respectively. Class A, Class B and Class C shares commenced
operations on November 25, 2002.
The accompanying statement of operations, statement of changes in net assets and
financial highlights represent the historical operations of the Galaxy Strategic
Equity Fund for periods prior to November 22, 2002.
20
Financial Highlights
Columbia Dividend Income Fund
Selected data for a share outstanding throughout each period is as follows:
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
MARCH 31, SEPTEMBER 30,
CLASS A SHARES 2004 (a) 2003 (b)(c)
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.26 $ 9.01
- -----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (d) 0.09 0.11
Net realized and unrealized gain on investments 1.32 0.25
-------- --------
Total from Investment Operations 1.41 0.36
- -----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.11) (0.11)
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 10.56 $ 9.26
Total return (e)(f)(g) 15.26% 4.02%
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (h)(i) 1.34% 1.42%
Net investment income (h)(i) 1.73% 1.38%
Waiver/reimbursement (i) 0.01% --%(j)
Portfolio turnover rate (f) 31% 33%
Net assets, end of period (000's) $ 5,959 $ 564
- -----------------------------------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Strategic Equity Fund was renamed Columbia
Strategic Equity Fund. On October 27, 2003, the Columbia Strategic Equity
Fund was renamed Columbia Dividend Income Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) Class A shares were initially offered on November 25, 2002. Per share data
and total return reflect activity from that date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Total return at net asset value assuming all distributions reinvested and no
initial sales charge or contingent deferred sales charge.
(f) Not annualized.
(g) Had the Investment Advisor and/or any of its affiliates 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.
(j) Rounds to less than 0.01%.
21
Columbia Dividend Income Fund
Selected data for a share outstanding throughout each period is as follows:
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
MARCH 31, SEPTEMBER 30,
CLASS B SHARES 2004 (a) 2003 (b)(c)
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.08 $ 8.82
- -----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (d) 0.04 0.05
Net realized and unrealized gain on investments 1.30 0.26
-------- --------
Total from Investment Operations 1.34 0.31
- -----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.07) (0.05)
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 10.35 $ 9.08
Total return (e)(f)(g) 14.74% 3.51%
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (h)(i) 2.10% 2.34%
Net investment income (h)(i) 0.92% 0.47%
Waiver/reimbursement (i) 0.01% --%(j)
Portfolio turnover rate (f) 31% 33%
Net assets, end of period (000's) $ 5,050 $ 1,136
- -----------------------------------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Strategic Equity Fund was renamed Columbia
Strategic Equity Fund. On October 27, 2003, the Columbia Strategic Equity
Fund was renamed Columbia Dividend Income Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) Class B shares were initially offered on November 25, 2002. Per share data
and total return reflect activity from that date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(f) Not annualized.
(g) Had the Investment Advisor and/or any of its affiliates 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.
(j) Rounds to less than 0.01%.
22
Columbia Dividend Income Fund
Selected data for a share outstanding throughout each period is as follows:
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
MARCH 31, SEPTEMBER 30,
CLASS C SHARES 2004 (a) 2003 (b)(c)
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.07 $ 8.82
- -----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (d) 0.05 0.07
Net realized and unrealized gain on investments 1.29 0.23
-------- -------
Total from Investment Operations 1.34 0.30
- -----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.07) (0.05)
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 10.34 $ 9.07
Total return (e)(f)(g) 14.75% 3.41%
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (h)(i) 2.09% 2.18%
Net investment income (h)(i) 0.92% 0.95%
Waiver/reimbursement (i) 0.01% --%(j)
Portfolio turnover rate (f) 31% 33%
Net assets, end of period (000's) $ 1,311 $ 152
- -----------------------------------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Strategic Equity Fund was renamed Columbia
Strategic Equity Fund. On October 27, 2003, the Columbia Strategic Equity
Fund was renamed Columbia Dividend Income Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) Class C shares were initially offered on November 25, 2002. Per share data
and total return reflect activity from that date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(f) Not annualized.
(g) Had the Investment Advisor and/or any of its affiliates 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.
(j) Rounds to less than 0.01%.
23
Columbia Dividend Income Fund
Selected data for a share outstanding throughout each period is as follows:
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED YEAR ENDED OCTOBER 31,
MARCH 31, SEPTEMBER 30, ----------------------------------------------------------------
CLASS G SHARES 2004 (a) 2003 (b)(c) 2002 2001 2000 1999 1998 (d)
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $ 9.07 $ 8.36 $ 9.87 $ 10.37 $ 9.84 $ 9.61 $ 10.00
- -----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss) 0.05(e) 0.05(e) (0.07)(e) (0.06)(e) (0.04) (0.02)(e) (0.02)
Net realized and unrealized
gain (loss)on investments 1.28 0.71 (1.05)(f) (0.11) 1.75 0.26 (0.37)
-------- -------- -------- -------- -------- -------- --------
Total from Investment
Operations 1.33 0.76 (1.12) (0.17) 1.71 0.24 (0.39)
- -----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED
TO SHAREHOLDERS:
From net investment income (0.06) (0.05) -- -- --(g) -- --
From net realized gains -- -- (0.39) (0.33) (1.18) (0.01) --
-------- -------- -------- -------- -------- -------- --------
Total Distributions Declared
to Shareholders (0.06) (0.05) (0.39) (0.33) (1.18) (0.01) --
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 10.34 $ 9.07 $ 8.36 $ 9.87 $ 10.37 $ 9.84 $ 9.61
Total return (h)(i) 14.73%(j) 9.08%(j) (12.16)% (1.71)% 20.33% 2.50% (4.76)%(j)
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/
SUPPLEMENTAL DATA:
Expenses (k) 2.18%(l) 2.21%(l) 2.17% 2.02% 1.95% 1.84% 2.01%(l)
Net investment income (loss) (k) 0.92%(l) 0.71%(l) (0.72)% (0.53)% (0.35)% (0.24)% (0.55)%(l)
Waiver/reimbursement 0.01%(l) --%(l)(m) 0.25% 0.24% 0.40% 0.56% 1.04%(l)
Portfolio turnover rate 31%(j) 33%(j) 65%(n) 81% 81% 79% 30%(j)
Net assets, end of period
(000's) $ 7,945 $ 9,650 $ 2,093 $ 2,286 $ 1,555 $ 1,348 $ 583
- -----------------------------------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Strategic Equity Fund was renamed Columbia
Strategic Equity Fund. On October 27, 2003, the Columbia Strategic Equity
Fund was renamed Columbia Dividend Income Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 25, 2002, Galaxy Strategic Equity Fund, Retail B shares were
redesignated Liberty Strategic Equity Fund, Class G shares.
(d) The Fund commenced operations on March 4, 1998.
(e) Per share data was calculated using average shares outstanding during the
period.
(f) The amount shown for a share outstanding does not correspond with the
aggregate net gain (loss) on investments for the period due to the timing of
repurchases of Fund shares in relation to fluctuating market values of the
investments of the Fund.
(g) Rounds to less than $0.01 per share.
(h) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(i) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(j) Not annualized.
(k) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(l) Annualized.
(m) Rounds to less than 0.01%.
(n) Portfolio turnover rate excludes securities delivered from processing a
redemption-in-kind.
24
Columbia Dividend Income Fund
Selected data for a share outstanding throughout each period is as follows:
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED YEAR ENDED OCTOBER 31,
MARCH 31, SEPTEMBER 30, ------------------------------------------------------------------
CLASS T SHARES 2004 (a) 2003 (b)(c) 2002 2001 2000 1999 1998 (d)
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $ 9.26 $ 8.54 $ 10.02 $ 10.46 $ 9.89 $ 9.62 $ 10.00
- -----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.08(e) 0.11(e) 0.01(e) 0.03(e) 0.04 0.04(e) --(f)
Net realized and unrealized gain
(loss) on investments 1.32 0.73 (1.08)(g) (0.11) 1.75 0.27 (0.38)
-------- -------- -------- -------- -------- -------- --------
Total from Investment Operations 1.40 0.84 (1.07) (0.08) 1.79 0.31 (0.38)
- -----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED
TO SHAREHOLDERS:
From net investment income (0.10) (0.12) (0.02) (0.03) (0.04) (0.03) --
From net realized gains -- -- (0.39) (0.33) (1.18) (0.01) --
-------- -------- -------- -------- -------- -------- --------
Total Distributions Declared
to Shareholders (0.10) (0.12) (0.41) (0.36) (1.22) (0.04) --
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 10.56 $ 9.26 $ 8.54 $ 10.02 $ 10.46 $ 9.89 $ 9.62
Total return (h)(i) 15.20%(j) 9.86%(j) (11.50)% (0.83)% 21.09% 3.25% (3.75)%(j)
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/
SUPPLEMENTAL DATA:
Expenses (k) 1.47%(l) 1.49%(l) 1.40% 1.24% 1.20% 1.19% 1.40%(l)
Net investment income (k) 1.61%(l) 1.42%(l) 0.05% 0.25% 0.40% 0.41% 0.06%(l)
Waiver/reimbursement 0.01%(l) 0.01%(l) 0.29% 0.26% 0.40% 0.44% 1.01%(l)
Portfolio turnover rate 31%(j) 33%(j) 65%(m) 81% 81% 79% 30%(j)
Net assets, end of period
(000's) $104,791 $ 96,638 $ 6,578 $ 8,400 $ 8,505 $ 8,229 $ 4,051
- -----------------------------------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Strategic Equity Fund was renamed Columbia
Strategic Equity Fund. On October 27, 2003, the Columbia Strategic Equity
Fund was renamed Columbia Dividend Income Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 25, 2002, Galaxy Strategic Equity Fund, Retail A shares were
redesignated Liberty Strategic Equity Fund, Class T shares.
(d) The Fund commenced operations on March 4, 1998.
(e) Per share data was calculated using average shares outstanding during the
period.
(f) Rounds to less than $0.01 per share.
(g) The amount shown for a share outstanding does not correspond with the
aggregate net gain (loss) on investments for the period due to the timing of
repurchases of Fund shares in relation to fluctuating market values of the
investments of the Fund.
(h) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(i) Total return at net asset value assuming all distributions reinvested and no
initial sales charge or contingent deferred sales charge.
(j) Not annualized.
(k) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(l) Annualized.
(m) Portfolio turnover rate excludes securities delivered from processing a
redemption-in-kind.
25
Columbia Dividend Income Fund
Selected data for a share outstanding throughout each period is as follows:
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED YEAR ENDED OCTOBER 31,
MARCH 31, SEPTEMBER 30, ------------------------------------------------------------------
CLASS Z SHARES 2004 (a) 2003 (b)(c) 2002 2001 2000 1999 1998 (d)
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $ 9.26 $ 8.56 $ 10.03 $ 10.48 $ 9.90 $ 9.63 $ 10.00
- -----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.10(e) 0.15(e) 0.06(e) 0.08(e) 0.08 0.09(e) 0.01
Net realized and unrealized
gain (loss) on investments 1.33 0.72 (1.07)(f) (0.12) 1.76 0.27 (0.37)
-------- -------- -------- -------- -------- -------- --------
Total from Investment Operations 1.43 0.87 (1.01) (0.04) 1.84 0.36 (0.36)
- -----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED
TO SHAREHOLDERS:
From net investment income (0.13) (0.17) (0.07) (0.08) (0.08) (0.08) (0.01)
From net realized gains -- -- (0.39) (0.33) (1.18) (0.01) --
-------- -------- -------- -------- -------- -------- --------
Total Distributions Declared
to Shareholders (0.13) (0.17) (0.46) (0.41) (1.26) (0.09) (0.01)
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 10.56 $ 9.26 $ 8.56 $ 10.03 $ 10.48 $ 9.90 $ 9.63
Total return (g)(h) 15.45%(i) 10.22%(i) (11.07)% (0.43)% 21.69% 3.64% (3.62)%(i)
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/
SUPPLEMENTAL DATA:
Expenses (j) 1.09%(k) 1.02%(k) 0.82% 0.75% 0.78% 0.80% 1.27%(k)
Net investment income (j) 2.00%(k) 1.89%(k) 0.63% 0.74% 0.83% 0.80% 0.19%(k)
Waiver/reimbursement 0.02%(k) 0.02%(k) 0.24% 0.21% 0.20% 0.20% 0.20%(k)
Portfolio turnover rate 31%(i) 33%(i) 65%(l) 81% 81% 79% 30%(i)
Net assets, end of period
(000's) $74,728 $73,276 $19,896 $102,909 $93,558 $71,063 $63,061
- -----------------------------------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Strategic Equity Fund was renamed Columbia
Strategic Equity Fund. On October 27, 2003, the Columbia Strategic Equity
Fund was renamed Columbia Dividend Income Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 25, 2002, Galaxy Strategic Equity Fund, Trust shares were
redesignated Liberty Strategic Equity Fund, Class Z shares.
(d) The Fund commenced operations on March 4, 1998.
(e) Per share data was calculated using average shares outstanding during the
period.
(f) The amount shown for a share outstanding does not correspond with the
aggregate net gain (loss) on investments for the period due to the timing of
repurchases of Fund shares in relation to fluctuating market values of the
investments of the Fund.
(g) Total return at net asset value assuming all distributions reinvested.
(h) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(i) Not annualized.
(j) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(k) Annualized.
(l) Portfolio turnover rate excludes securities delivered from processing a
redemption-in-kind.
26
IMPORTANT INFORMATION ABOUT THIS REPORT
Columbia Dividend Income Fund
TRANSFER AGENT
Columbia Funds Services, Inc.
P.O. Box 8081
Boston MA 02266-8081
800.345.6611
DISTRIBUTOR
Columbia Funds Distributor, Inc.
One Financial Center
Boston MA 02111
INVESTMENT ADVISOR
Columbia Management Advisors, Inc.
100 Federal Street
Boston MA 02110
The fund mails one shareholder report to each shareholder address. If you would
like more than one report, please call shareholder services at 800-345-6611 and
additional reports will be sent to you.
This report has been prepared for shareholders of Columbia Dividend Income Fund.
This report may also be used as sales literature when preceded or accompanied by
the current prospectus which provides details of sales charges, investment
objectives and operating policies of the fund and with the most recent copy of
the Columbia Funds Performance Update.
A description of the policies and procedures that the fund uses to determine how
to vote proxies relating to its portfolio securities is available (i) without
charge, upon request, by calling 800-345-6611 and (ii) on the Securities and
Exchange Commissionwebsite at http://www.sec.gov.
27
COLUMBIA FUNDS
Columbia Dividend Income Fund
----------------------------------------------------------------------------------------
Large Growth Columbia Common Stock
Columbia Growth
Columbia Growth Stock
Columbia Large Cap Growth
Columbia Tax-Managed Growth
Columbia Tax-Managed Growth II
Columbia Young Investor
----------------------------------------------------------------------------------------
Large Value Columbia Disciplined Value
Columbia Growth & Income
Columbia Large Cap Core
Columbia Tax-Managed Value
----------------------------------------------------------------------------------------
Midcap Growth Columbia Acorn Select
Columbia Mid Cap Growth
Columbia Tax-Managed Aggressive Growth
----------------------------------------------------------------------------------------
Midcap Value Columbia Dividend Income
Columbia Mid Cap
Columbia Strategic Investor
----------------------------------------------------------------------------------------
Small Growth Columbia Acorn
Columbia Acorn USA
Columbia Small Company Equity
----------------------------------------------------------------------------------------
Small Value Columbia Small Cap
Columbia Small Cap Value
----------------------------------------------------------------------------------------
Balanced Columbia Asset Allocation
Columbia Balanced
Columbia Liberty Fund
----------------------------------------------------------------------------------------
Specialty Columbia Real Estate Equity
Columbia Technology
Columbia Utilities
----------------------------------------------------------------------------------------
Taxable Fixed-Income Columbia Contrarian Income
Columbia Corporate Bond
Columbia Federal Securities
Columbia Fixed Income Securities
Columbia High Yield
Columbia High Yield Opportunities
Columbia Income
Columbia Intermediate Bond
Columbia Intermediate Government Income
Columbia Quality Plus Bond
Columbia Short Term Bond
Columbia Strategic Income
----------------------------------------------------------------------------------------
Floating Rate Columbia Floating Rate
Columbia Floating Rate Advantage
----------------------------------------------------------------------------------------
Tax Exempt Columbia High Yield Municipal
Columbia Intermediate Tax-Exempt Bond
Columbia Managed Municipals
Columbia National Municipal Bond
Columbia Tax-Exempt
Columbia Tax-Exempt Insured
28
Columbia Dividend Income Fund
----------------------------------------------------------------------------------------
Single State Tax Exempt Columbia California Tax-Exempt
Columbia Connecticut Intermediate Municipal Bond
Columbia Connecticut Tax-Exempt
Columbia Florida Intermediate Municipal Bond
Columbia Massachusetts Intermediate Municipal Bond
Columbia Massachusetts Tax-Exempt
Columbia New Jersey Intermediate Municipal Bond
Columbia New York Intermediate Municipal Bond
Columbia New York Tax-Exempt
Columbia Oregon Municipal Bond
Columbia Pennsylvania Intermediate Municipal Bond
Columbia Rhode Island Intermediate Municipal Bond
----------------------------------------------------------------------------------------
Money Market Columbia Money Market
Columbia Municipal Money Market
----------------------------------------------------------------------------------------
International/Global Columbia Acorn International
Columbia Acorn International Select
Columbia Europe
Columbia Global Equity
Columbia International Stock
Columbia Newport Asia Pacific
Columbia Newport Greater China
Columbia Newport Tiger
----------------------------------------------------------------------------------------
Index Columbia Large Company Index
Columbia Small Company Index
Columbia U.S. Treasury Index
Please consider the investment objectives, risks, charges and expenses of a
mutual fund carefully before investing. Contact us at 800-345-6611 for a
prospectus which contains this and other important information about the fund.
Read it carefully before you invest.
For complete product information on any Columbia fund, visit our website at
www.columbiafunds.com.
Columbia Management Group and Columbia Management refer collectively to the
various investment advisory subsidiaries of Columbia Management Group, including
Columbia Management Advisors, Inc., the registered investment advisor, and
Columbia Funds Distributor, Inc.
29
artwork: hands on keyboard.
Caption: "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 Dividend Income Fund SEMIANNUAL REPORT, MARCH 31, 2004
PRSRT STD
U.S. POSTAGE
PAID
HOLLISTON, MA
PERMIT NO. 20
[LOGO]:
COLUMBIA FUNDS
A MEMBER OF COLUMBIA MANAGEMENT GROUP
(C)2004 COLUMBIA FUNDS DISTRIBUTOR, INC.
ONE FINANCIAL CENTER, BOSTON, MA 02111-2621
800.345.6611 www.columbiafunds.com
G-03/638R-0304 (05/04) 04/1085
[GRAPHIC]
COLUMBIA GROWTH STOCK FUND
SEMIANNUAL REPORT
MARCH 31, 2004
[COLUMBIAFUNDS(R) LOGO]
A MEMBER OF COLUMBIA MANAGEMENT GROUP
<Page>
TABLE OF CONTENTS
<Table>
Fund Profile 1
Performance Information 2
Economic Update 3
Portfolio Manager's Report 4
Financial Statements 6
Investment Portfolio 7
Statement of Assets and Liabilities 9
Statement of Operations 10
Statement of Changes in Net Assets 11
Notes to Financial Statements 12
Financial Highlights 17
Important Information
About This Report 21
</Table>
Economic and market conditions change frequently. There is no assurance that
trends described in this report will continue or commence.
NOT FDIC MAY LOSE VALUE
INSURED -----------------
NO BANK GUARANTEE
TO OUR FELLOW SHAREHOLDERS
COLUMBIA GROWTH STOCK FUND
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
intends to deliver additional research and management capabilities, as well as
new products to you.
There are no immediate changes planned for fund names 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 requires 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 want you to know that all of the members of your fund's Board of Trustees are
independent of the fund's advisor and its affiliates. In addition, the board has
been energetic over the past year in strengthening its capacity to oversee the
Columbia funds. Recently, the Board of Trustees:
- - APPOINTED A CHIEF COMPLIANCE OFFICER OF THE COLUMBIA FUNDS, WHO REPORTS
DIRECTLY TO EACH FUND'S AUDIT COMMITTEE. TRUSTEES WERE ALSO ASSIGNED TO FOUR
SEPARATE INVESTMENT OVERSIGHT COMMITTEES, EACH DEDICATED TO MONITORING
PERFORMANCE OF INDIVIDUAL FUNDS.
- - VOTED TO DOUBLE THE REQUIRED INVESTMENT BY EACH TRUSTEE IN THE COLUMBIA FUNDS
-- TO FURTHER ALIGN THE INTERESTS OF THE TRUSTEES WITH THOSE OF OUR FUND
SHAREHOLDERS. AT THE SAME TIME, NEW POLICIES WERE INSTITUTED REQUIRING ALL
INVESTMENT PERSONNEL AND TRUSTEES TO HOLD THEIR COLUMBIA FUND SHARES FOR A
MINIMUM OF ONE YEAR (UNLESS EXTRAORDINARY CIRCUMSTANCES WARRANT AN EXCEPTION
TO BE GRANTED BY SENIOR EXECUTIVES OF THE ADVISOR FOR INVESTMENT PERSONNEL
AND BY A DESIGNATED COMMITTEE FOR THE BOARD).
Both your fund's trustees 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 during the period and the performance of your Columbia fund. These
discussions are followed by financial statements for your fund. We hope that you
will take time to read this report and discuss it with your financial advisor if
you have any questions.
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 Trustees President, Columbia Funds
J. Kevin Connaughton was named president of Columbia Funds on February 27, 2004.
<Page>
FUND PROFILE
COLUMBIA GROWTH STOCK FUND
The information below gives you a snapshot of your fund at the end of the
reporting period. Your fund is actively managed and the composition of its
portfolio will change over time.
TOP 5 SECTORS AS OF 03/31/04 (%)
<Table>
Information technology 37.1
Health care 20.8
Consumer staples 13.0
Consumer discretionary 12.3
Financials 8.0
</Table>
TOP 10 HOLDINGS AS OF 03/31/04 (%)
<Table>
Microsoft 4.7
General Electric 4.7
Medtronic 4.2
Wal-Mart Stores 4.0
Pfizer 3.9
Cisco Systems 3.9
Xilinx 3.6
American International Group 3.5
Cardinal Health 3.5
Schlumberger 3.4
</Table>
Sector breakdowns and portfolio holdings are calculated as a percentage of net
assets.
(C)2004 Morningstar, Inc. All Rights Reserved. The information contained herein:
(1) is proprietary to Morningstar and/or its content providers; (2) may not be
copied or distributed; and (3) is not warranted to be accurate, complete or
timely. Neither Morningstar nor its content providers are responsible for any
damages or losses arising from any use of this information. Past performance is
no guarantee of future results.
The Morningstar Style Box(TM) reveals a fund's investment strategy. For equity
funds the vertical axis shows the market capitalization of the stocks owned and
the horizontal axis shows investment style (value, blend or growth). For
fixed-income funds the vertical axis shows the average credit quality of the
bonds owned, and the horizontal axis shows interest rate sensitivity as measured
by a bond's duration (short, intermediate or long). All of these numbers are
drawn from the data most recently provided by the fund and entered into
Morningstar's database as of month-end. Although the data are gathered from
reliable sources, Morningstar cannot guarantee completeness and accuracy. As of
03/31/2004.
[SIDENOTE]
SUMMARY
- - FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2004, THE FUND'S CLASS A SHARES
RETURNED 7.14% WITHOUT SALES CHARGE.
- - THE FUND TRAILED BOTH ITS BENCHMARK, THE RUSSELL 1000 GROWTH INDEX, AND ITS
PEER GROUP, THE MORNINGSTAR(R) LARGE GROWTH CATEGORY.
- - RELATIVE PERFORMANCE SUFFERED AS MEGA-CAP, HIGH-QUALITY STOCKS MOVED OUT OF
FAVOR. THE FUND'S ABOVE-AVERAGE STAKE IN TECHNOLOGY ALSO HURT RETURNS.
<Table>
CLASS A SHARES 7.14%
RUSSELL 1000 GROWTH INDEX 11.28%
</Table>
OBJECTIVE
Seeks long-term growth of capital
TOTAL NET ASSETS
$811.2 million
MORNINGSTAR STYLE BOX
[GRAPHIC]
1
<Page>
PERFORMANCE INFORMATION
COLUMBIA GROWTH STOCK FUND
[CHART]
VALUE OF A $10,000 INVESTMENT 04/01/94 - 03/31/04
<Table>
<Caption>
CLASS A SHARES WITHOUT SALES CHARGE CLASS A SHARES WITH SALES CHARGE RUSSELL 1000 GROWTH INDEX S&P 500 INDEX
4/1/94 $ 10,000 $ 9,425 $ 10,000 $ 10,000
4/30/94 $ 10,000 $ 9,425 $ 10,046 $ 10,128
5/31/94 $ 10,191 $ 9,605 $ 10,199 $ 10,294
6/30/94 $ 9,708 $ 9,150 $ 9,897 $ 10,042
7/31/94 $ 9,943 $ 9,371 $ 10,235 $ 10,371
8/31/94 $ 10,461 $ 9,859 $ 10,805 $ 10,796
9/30/94 $ 10,261 $ 9,671 $ 10,660 $ 10,532
10/31/94 $ 10,383 $ 9,786 $ 10,910 $ 10,769
11/30/94 $ 10,109 $ 9,528 $ 10,560 $ 10,377
12/31/94 $ 10,213 $ 9,626 $ 10,737 $ 10,531
1/31/95 $ 10,324 $ 9,730 $ 10,967 $ 10,803
2/28/95 $ 10,666 $ 10,053 $ 11,427 $ 11,225
3/31/95 $ 10,953 $ 10,323 $ 11,760 $ 11,556
4/30/95 $ 11,250 $ 10,603 $ 12,018 $ 11,895
5/31/95 $ 11,482 $ 10,822 $ 12,436 $ 12,371
6/30/95 $ 11,944 $ 11,258 $ 12,916 $ 12,658
7/31/95 $ 12,383 $ 11,671 $ 13,453 $ 13,079
8/31/95 $ 12,514 $ 11,795 $ 13,468 $ 13,111
9/30/95 $ 13,154 $ 12,397 $ 14,089 $ 13,665
10/31/95 $ 13,079 $ 12,327 $ 14,099 $ 13,615
11/30/95 $ 13,708 $ 12,919 $ 14,647 $ 14,213
12/31/95 $ 13,853 $ 13,056 $ 14,731 $ 14,487
1/31/96 $ 14,147 $ 13,333 $ 15,223 $ 14,980
2/29/96 $ 14,335 $ 13,511 $ 15,501 $ 15,119
3/31/96 $ 14,507 $ 13,673 $ 15,521 $ 15,264
4/30/96 $ 14,678 $ 13,834 $ 15,930 $ 15,489
5/31/96 $ 15,309 $ 14,429 $ 16,486 $ 15,888
6/30/96 $ 15,474 $ 14,585 $ 16,509 $ 15,949
7/31/96 $ 14,529 $ 13,694 $ 15,541 $ 15,244
8/31/96 $ 14,894 $ 14,037 $ 15,942 $ 15,565
9/30/96 $ 15,923 $ 15,007 $ 17,103 $ 16,442
10/31/96 $ 16,254 $ 15,319 $ 17,205 $ 16,896
11/30/96 $ 17,150 $ 16,164 $ 18,498 $ 18,173
12/31/96 $ 16,755 $ 15,792 $ 18,135 $ 17,813
1/31/97 $ 18,221 $ 17,174 $ 19,406 $ 18,926
2/28/97 $ 17,855 $ 16,828 $ 19,274 $ 19,074
3/31/97 $ 16,714 $ 15,753 $ 18,232 $ 18,290
4/30/97 $ 18,029 $ 16,993 $ 19,442 $ 19,382
5/31/97 $ 19,194 $ 18,091 $ 20,846 $ 20,562
6/30/97 $ 20,077 $ 18,923 $ 21,680 $ 21,484
7/31/97 $ 21,627 $ 20,384 $ 23,596 $ 23,194
8/31/97 $ 20,187 $ 19,026 $ 22,216 $ 21,895
9/30/97 $ 21,196 $ 19,977 $ 23,309 $ 23,095
10/31/97 $ 20,734 $ 19,542 $ 22,446 $ 22,323
11/30/97 $ 21,215 $ 19,995 $ 23,400 $ 23,357
12/31/97 $ 22,057 $ 20,789 $ 23,663 $ 23,759
1/31/98 $ 21,980 $ 20,716 $ 24,370 $ 24,022
2/28/98 $ 23,558 $ 22,204 $ 26,203 $ 25,754
3/31/98 $ 24,588 $ 23,174 $ 27,248 $ 27,073
4/30/98 $ 24,920 $ 23,487 $ 27,624 $ 27,346
5/31/98 $ 24,646 $ 23,228 $ 26,840 $ 26,876
6/30/98 $ 26,129 $ 24,627 $ 28,482 $ 27,967
7/31/98 $ 25,771 $ 24,289 $ 28,294 $ 27,671
8/31/98 $ 21,315 $ 20,090 $ 24,047 $ 23,670
9/30/98 $ 22,191 $ 20,915 $ 25,894 $ 25,187
10/31/98 $ 23,931 $ 22,555 $ 27,976 $ 27,234
11/30/98 $ 25,702 $ 24,224 $ 30,105 $ 28,885
12/31/98 $ 27,691 $ 26,099 $ 32,820 $ 30,549
1/31/99 $ 30,031 $ 28,305 $ 34,747 $ 31,826
2/28/99 $ 29,182 $ 27,504 $ 33,159 $ 30,836
3/31/99 $ 31,029 $ 29,245 $ 34,907 $ 32,069
4/30/99 $ 30,511 $ 28,756 $ 34,952 $ 33,310
5/31/99 $ 29,693 $ 27,986 $ 33,879 $ 32,524
6/30/99 $ 31,893 $ 30,059 $ 36,250 $ 34,329
7/31/99 $ 30,876 $ 29,100 $ 35,098 $ 33,258
8/31/99 $ 30,480 $ 28,728 $ 35,670 $ 33,095
9/30/99 $ 30,179 $ 28,443 $ 34,921 $ 32,188
10/31/99 $ 32,041 $ 30,198 $ 37,557 $ 34,226
11/30/99 $ 33,505 $ 31,578 $ 39,585 $ 34,921
12/31/99 $ 37,831 $ 35,655 $ 43,702 $ 36,978
1/31/2000 $ 37,899 $ 35,719 $ 41,652 $ 35,121
2/29/2000 $ 41,662 $ 39,266 $ 43,689 $ 34,458
3/31/2000 $ 43,799 $ 41,281 $ 46,817 $ 37,827
4/30/2000 $ 41,622 $ 39,229 $ 44,589 $ 36,689
5/31/2000 $ 38,417 $ 36,208 $ 42,342 $ 35,937
6/30/2000 $ 41,840 $ 39,435 $ 45,551 $ 36,824
7/31/2000 $ 40,426 $ 38,102 $ 43,652 $ 36,250
8/31/2000 $ 44,340 $ 41,790 $ 47,602 $ 38,501
9/30/2000 $ 40,752 $ 38,409 $ 43,099 $ 36,468
10/31/2000 $ 37,578 $ 35,417 $ 41,060 $ 36,315
11/30/2000 $ 32,433 $ 30,569 $ 35,008 $ 33,453
12/31/2000 $ 33,539 $ 31,611 $ 33,902 $ 33,617
1/31/2001 $ 34,653 $ 32,660 $ 36,244 $ 34,811
2/28/2001 $ 30,425 $ 28,676 $ 30,090 $ 31,636
3/31/2001 $ 28,159 $ 26,539 $ 26,816 $ 29,630
4/30/2001 $ 30,848 $ 29,074 $ 30,209 $ 31,933
5/31/2001 $ 30,018 $ 28,292 $ 29,765 $ 32,147
6/30/2001 $ 28,808 $ 27,152 $ 29,074 $ 31,365
7/31/2001 $ 27,402 $ 25,827 $ 28,347 $ 31,058
8/31/2001 $ 25,273 $ 23,820 $ 26,028 $ 29,114
9/30/2001 $ 23,031 $ 21,707 $ 23,431 $ 26,761
10/31/2001 $ 23,722 $ 22,358 $ 24,661 $ 27,272
11/30/2001 $ 25,656 $ 24,181 $ 27,031 $ 29,364
12/31/2001 $ 25,510 $ 24,043 $ 26,979 $ 29,623
1/31/2002 $ 24,747 $ 23,324 $ 26,502 $ 29,190
2/28/2002 $ 23,537 $ 22,183 $ 25,402 $ 28,627
3/31/2002 $ 24,601 $ 23,186 $ 26,281 $ 29,703
4/30/2002 $ 23,203 $ 21,869 $ 24,136 $ 27,903
5/31/2002 $ 22,765 $ 21,456 $ 23,552 $ 27,697
6/30/2002 $ 20,937 $ 19,733 $ 21,374 $ 25,725
7/31/2002 $ 19,113 $ 18,014 $ 20,198 $ 23,721
8/31/2002 $ 19,035 $ 17,940 $ 20,259 $ 23,875
9/30/2002 $ 17,150 $ 16,164 $ 18,158 $ 21,280
10/31/2002 $ 18,044 $ 17,006 $ 19,823 $ 23,152
11/30/2002 $ 19,092 $ 17,994 $ 20,899 $ 24,516
12/31/2002 $ 17,887 $ 16,859 $ 19,455 $ 23,077
1/31/2003 $ 17,576 $ 16,566 $ 18,982 $ 22,472
2/28/2003 $ 17,091 $ 16,108 $ 18,895 $ 22,135
3/31/2003 $ 17,460 $ 16,456 $ 19,247 $ 22,350
4/30/2003 $ 18,801 $ 17,720 $ 20,669 $ 24,192
5/31/2003 $ 19,694 $ 18,562 $ 21,700 $ 25,466
6/30/2003 $ 19,771 $ 18,634 $ 22,000 $ 25,792
7/31/2003 $ 20,431 $ 19,257 $ 22,548 $ 26,246
8/31/2003 $ 20,801 $ 19,605 $ 23,109 $ 26,758
9/30/2003 $ 20,121 $ 18,964 $ 22,862 $ 26,475
10/31/2003 $ 21,189 $ 19,971 $ 24,147 $ 27,973
11/30/2003 $ 21,656 $ 20,410 $ 24,400 $ 28,219
12/31/2003 $ 22,297 $ 21,015 $ 25,244 $ 29,698
1/31/2004 $ 22,355 $ 21,069 $ 25,759 $ 30,244
2/29/2004 $ 22,102 $ 20,831 $ 25,924 $ 30,665
3/31/2004 $ 21,549 $ 20,310 $ 25,441 $ 30,191
</Table>
The graph and table do not reflect the deduction of taxes a shareholder would
pay on fund distributions or the redemeption of fund shares. 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 Standard & Poor's (S&P) 500 Index is an unmanaged index that
tracks the performance of 500 widely held, large-capitalization US stocks. As
reported in the annual report dated September 30, 2003, the S&P 500 Index was
the fund's previous benchmark. 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 the index.
AVERAGE ANNUAL TOTAL RETURN AS OF 03/31/04 (%)
<Table>
<Caption>
SHARE CLASS A B C Z
- ---------------------------------------------------------------------------------------------
INCEPTION 07/15/02 07/15/02 07/15/02 07/01/58
- ---------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- ---------------------------------------------------------------------------------------------
6-month (cumulative) 7.14 1.00 6.75 1.75 6.75 5.75 7.45
1-year 23.47 16.35 22.54 17.54 22.57 21.57 24.05
5-year -7.02 -8.12 -7.26 -7.55 -7.25 -7.25 -6.82
10-year 7.98 7.34 7.85 7.85 7.85 7.85 8.10
</Table>
All results shown assume reinvestment of distributions. The "with sales charge"
returns include the maximum 5.75% sales charge for class A shares, the
appropriate class B contingent deferred sales charge (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 C CDSC of 1% for the first year only.
Performance results reflect any voluntary waivers or reimbursements of fund
expenses by the advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower. Performance for
different share classes varies based on differences in sales charges and fees
associated with each class.
The performance information for class A, B, and C shares (newer class shares)
includes returns for the fund's class Z shares (the oldest existing fund class)
for periods prior to the inception date of the newer share classes. These
returns are not restated to reflect any expense differential (e.g., Rule 12b-1
fees and transfer agent 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 the newer class shares would have been lower.
[SIDENOTE]
PERFORMANCE OF A $10,000 INVESTMENT
04/01/94 - 03/31/04 ($)
<Table>
<Caption>
SALES CHARGE: WITHOUT WITH
- ---------------------------------------
Class A 21,549 20,310
Class B 21,282 21,282
Class C 21,284 21,284
Class Z 21,787 n/a
</Table>
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.
2
<Page>
ECONOMIC UPDATE
COLUMBIA GROWTH STOCK FUND
The US economy moved ahead during the six-month reporting period that began
October 1, 2003 and ended March 31, 2004. A burst of strength in the third
quarter of 2003, for which annualized GDP was reported at 8.2%, was followed by
fourth quarter growth of 4.1%. That was still comfortably ahead of the economy's
long-term average growth rate of 3.0%. GDP growth for first quarter of 2004 was
4.2%.
Although job growth was slow to catch on, the economy showed signs of
improvement on all fronts. Consumer spending rose as a sizeable package of tax
cuts, implemented in 2003, gave disposable income a boost. Low interest rates
spurred a new round of mortgage refinancing late in the period. Consumer
confidence slipped late in the period as the outlook for the labor market
remained clouded despite a significant pick-up in the new jobs added in March.
Nevertheless, housing and retail sales showed steady gains throughout the
period.
After two years of holding back, the business sector began to show signs of
improvement late in 2003. Business spending on technology-related items rose as
corporate profits improved. Spending on capital equipment also picked up.
US STOCKS HEADED HIGHER
The US stock market snapped a three-year losing streak in 2003, but its rate of
return slowed early in 2004 in response to a mixed job outlook and renewed fears
about terrorism. The S&P 500 Index returned 14.08% for this six-month period.
Small company stocks were even stronger. The Russell 2000 Index, an unmanaged
index that tracks the performance of 2,000 small US companies based on total
market capitalizations, returned 21.69% for the period.
INTERNATIONAL STOCK MARKETS REPORTED STRONG RETURNS
A modest rebound in economic growth and a declining US dollar helped
international stock markets post strong returns. 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 22.16% for
the period. European stock markets responded to improving economic data and
relatively low interest rates. Japan's economy continued to report steady but
modest growth, and its improvement was reflected in strong stock market returns.
The stock markets of Korea, Malaysia and Taiwan scored double-digit gains during
the period as did those of Colombia and Mexico.
BONDS DELIVERED RESPECTABLE GAINS
A growing economy continued to boost investor enthusiasm for high-yield bonds,
which led the fixed-income markets during the period. The six-month return for
the Merrill Lynch US High Yield, Cash Pay Index was 8.21%. However, high-yield
bonds slipped in the second half of this reporting period. US Treasury bonds
gained ground and other segments of the bond market also delivered respectable
gains as interest rates declined. The Lehman Brothers Aggregate Bond Index, a
broad measure of investment-grade bond performance, returned 2.98%. However,
money market fund yields remained below 1%.
[SIDENOTE]
SUMMARY
FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2004
- - STOCK MARKETS AROUND THE WORLD BENEFITED FROM A PICK-UP IN ECONOMIC GROWTH
AND AN INCREASE IN CORPORATE PROFITS. BOTH THE S&P 500 INDEX AND THE MSCI
EAFE INDEX POSTED DOUBLE-DIGIT RETURNS THIS PERIOD.
<Table>
S&P 500 INDEX 14.08%
MSCI EAFE INDEX 22.16%
</Table>
- - PERFORMANCE IN THE FIXED-INCOME UNIVERSE WAS LED BY HIGH-YIELD BONDS. AS
MEASURED BY THE MERRILL LYNCH US HIGH YIELD, CASH PAY INDEX, THIS SECTOR
POSTED A RETURN MORE THAN FIVE PERCENTAGE POINTS HIGHER THAN THE RETURN FOR
INVESTMENT-GRADE BONDS, AS MEASURED BY THE LEHMAN BROTHERS AGGREGATE BOND
INDEX.
<Table>
MERRILL LYNCH INDEX 8.21%
LEHMAN INDEX 2.98%
</Table>
The S&P 500 Index is an unmanaged index that tracks the performance of 500
widely held, large-capitalization US stocks.
The MSCI EAFE Index is an unmanaged, market-weighted index composed of companies
representative of the market structure of 21 developed market countries in
Europe, Australasia and the Far East.
The Merrill Lynch US High Yield, Cash Pay Index is an unmanaged index that
tracks the performance of non-investment-grade corporate bonds.
The Lehman Brothers Aggregate Bond Index is a market value-weighted index that
tracks fixed-rate, publicly placed, dollar-denominated and non-convertible
investment grade debt issues.
3
<Page>
PORTFOLIO MANAGER'S REPORT
COLUMBIA GROWTH STOCK FUND
For the six-month period ended March 31, 2004, Columbia Growth Stock Fund class
A shares returned 7.14% without sales charge. The fund trailed the Russell 1000
Growth Index, which returned 11.28% during the same period. The fund also was
behind the Morningstar(R) Large Growth Category average of 11.63%.(1) Our focus
on high quality, large company stocks hampered performance. Investors favored
the more speculative stocks of smaller companies during the period. In addition,
the fund had a sizable stake in technology, which suffered amid concerns that
stock prices had climbed too far, too fast.
LONG-TERM FOCUS ON LARGEST GROWTH COMPANIES
We repositioned the fund early in the period to focus on companies with superior
longer-term prospects for growth and profitability. In seeking to create a
diversified, yet concentrated portfolio, we invested in high quality names that
we expect to increase in value over time. We targeted well-run companies with
strong business prospects and proprietary competitive advantages. Although many
of these stocks underperformed during the period, we believe the underlying
companies generally performed well and the stocks' longer-term appreciation
potential remains attractive.
OPPORTUNITY FOR RAPID GROWTH IN TECHNOLOGY SECTOR
Within technology, we found a disproportionate share of attractive stocks.
Technology companies have the opportunity to develop innovative products with
the potential to expand existing markets and create new markets on a global
basis. Unfortunately, many tech stocks, while producing strong revenue and
earnings growth, suffered amid concerns that they could not sustain the strong
run they had in 2003. Microsoft, the dominant provider of personal computer
software and a leader in enterprise operating systems, also faced anti-trust
suits in the United States and Europe that worried investors. Novellus Systems,
which provides sophisticated equipment used to manufacture semiconductors, was a
disappointing performer despite a strong uptrend in orders from customers. A few
tech holdings rallied despite the unfavorable environment, including Xilinx, a
company that makes programmable semiconductors, and Cisco Systems, which
dominates the data communications industry.
(1) (C)2004, Morningstar, Inc. All rights reserved. The information contained
herein is the proprietary information of Morningstar, Inc., may not be copied or
redistributed for any purpose and may only be used for noncommercial, personal
purposes. The information contained herein is not represented or warranted to be
accurate, correct, complete or timely. Morningstar, Inc. shall not be
responsible for investment decisions, damages or other losses resulting from the
use of this information. Past performance is no guarantee of future results.
Morningstar, Inc. has not granted consent for it to be considered or deemed an
"expert" under the Securities Act of 1933.
[SIDENOTE]
NET ASSET VALUE PER SHARE AS OF
03/31/04 ($)
<Table>
Class A 11.10
Class B 10.60
Class C 10.59
Class Z 8.94
</Table>
HOLDINGS DISCUSSED IN THIS REPORT
AS OF 03/31/04 (%)
<Table>
Microsoft 4.7
Novellus Systems 2.3
Xilinx 3.6
Cisco Systems 3.9
Pfizer 3.9
Amgen 2.8
Viacom 2.9
Comcast 2.6
</Table>
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.
4
<Page>
SIZABLE STAKES IN HEALTH CARE AND MEDIA
In the health care sector, the fund owned a mix of pharmaceutical, biotechnology
and medical device companies. Concerns about patent expirations, product
pipelines and prospective political developments dampened investors' enthusiasm
for the pharmaceutical industry. Pfizer, however, which we consider the best-run
major drug company, made a significant recovery from earlier lows. Amgen, a
biotech company, underperformed as investors expressed concerns regarding the
company's ability to maintain its record of superior performance.
Media stocks did not perform as well as expected in a recovering economy, when
strong corporate profits typically drive increased spending on advertising. The
fund's investment in Viacom detracted from performance as investors focused on
an apparent delay in the recovery of the company's radio business. We expect the
stock to benefit if advertisers increase their spending on Viacom's diversified
media properties. Comcast, the largest cable television provider, gave up its
earlier gains following its announcement of an offer to acquire the Walt Disney
Company.
OPTIMISTIC OUTLOOK FOR GROWTH STOCKS
Looking ahead, we believe that large-cap growth stocks are poised to benefit
from rapid technological change that helps companies improve their products,
create new businesses and change the way they operate. The possibility of stable
inflation rates, continued improvements in productivity and a long economic
cycle also bode well for growth stocks.
[PHOTO OF PAUL BLAUSTEIN]
Paul Blaustein, CFA, has managed Columbia Growth Stock Fund since November 2003
and has been with the advisor since 2003.
/s/ Paul Blaustein
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.
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.
[SIDENOTE]
WE BELIEVE THAT LARGE-CAP GROWTH STOCKS ARE POISED TO BENEFIT FROM RAPID
TECHNOLOGICAL CHANGE THAT HELPS COMPANIES IMPROVE THEIR PRODUCTS, CREATE NEW
BUSINESSES AND CHANGE THE WAY THEY OPERATE.
5
<Page>
FINANCIAL STATEMENTS
MARCH 31, 2004 COLUMBIA GROWTH STOCK FUND
A GUIDE TO UNDERSTANDING YOUR FUND'S FINANCIAL STATEMENTS
INVESTMENT PORTFOLIO
The investment portfolio details all of the fund's holdings and their market
value as of the last day of the reporting period. Portfolio holdings are
organized by type of asset, industry, country or geographic region (if
applicable) to demonstrate areas of concentration and diversification.
STATEMENT OF ASSETS AND LIABILITIES
This statement details the fund's assets, liabilities, net assets and share
price for each share class as of the last day of the reporting period. 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 accrued by the
fund during the reporting period. 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) during the
reporting period. The Statement of Changes in Net Assets also details changes in
the number of shares outstanding.
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.
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 the classes' performance and certain key ratios (e.g., class
expenses and net investment income as a percentage of average net assets).
6
<Page>
INVESTMENT PORTFOLIO
MARCH 31, 2004 (UNAUDITED) COLUMBIA GROWTH STOCK FUND
<Table>
<Caption>
SHARES VALUE ($)
- ----------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 99.3%
CONSUMER DISCRETIONARY - 12.3%
MEDIA - 10.8% Comcast Corp., Class A 722,600 20,767,524
Liberty Media Corp., Class A 1,188,800 13,017,360
News Corp Ltd., ADR 337,900 12,157,642
Time Warner, Inc. (a) 1,044,100 17,603,526
Viacom, Inc., Class B 608,700 23,867,127
Media Total 87,413,179
SPECIALTY RETAIL - 1.5% Home Depot, Inc. 325,400 12,156,944
Specialty Retail Total 12,156,944
-----------
CONSUMER DISCRETIONARY TOTAL 99,570,123
CONSUMER STAPLES - 13.0%
FOOD & STAPLES RETAILING - 7.2% Costco Wholesale Corp. (a) 690,900 25,950,204
Wal-Mart Stores, Inc. 547,200 32,662,368
Food & Staples Retailing Total 58,612,572
HOUSEHOLD PRODUCTS - 5.8% Colgate-Palmolive Co. 467,500 25,759,250
Procter & Gamble Co. 205,300 21,531,864
Household Products Total 47,291,114
-----------
CONSUMER STAPLES TOTAL 105,903,686
ENERGY - 3.4%
ENERGY EQUIPMENT & SERVICES - 3.4% Schlumberger Ltd. 434,900 27,768,365
Energy Equipment & Services Total 27,768,365
-----------
ENERGY TOTAL 27,768,365
FINANCIALS - 8.0%
CAPITAL MARKETS - 1.5% Merrill Lynch & Co., Inc. 205,100 12,215,756
Capital Markets Total 12,215,756
COMMERCIAL BANKS - 3.0% Wells Fargo & Co. 435,900 24,702,453
Commercial Banks Total 24,702,453
INSURANCE - 3.5% American International
Group, Inc. 398,300 28,418,705
Insurance Total 28,418,705
-----------
FINANCIALS TOTAL 65,336,914
HEALTH CARE - 20.8%
BIOTECHNOLOGY - 2.8% Amgen, Inc. (a) 396,200 23,046,954
Biotechnology Total 23,046,954
HEALTH CARE EQUIPMENT & SUPPLIES - 4.2% Medtronic, Inc. 705,600 33,692,400
Health Care Equipment &
Supplies Total 33,692,400
HEALTH CARE PROVIDERS & SERVICES - 3.5% Cardinal Health, Inc. 407,400 28,069,860
Health Care Providers &
Services Total 28,069,860
PHARMACEUTICALS - 10.3% Johnson & Johnson 487,700 24,736,144
Novartis AG, ADR 634,200 27,016,920
Pfizer, Inc. 911,800 31,958,590
Pharmaceuticals Total 83,711,654
-----------
HEALTH CARE TOTAL 168,520,868
</Table>
See notes to investment portfolio.
7
<Page>
<Table>
<Caption>
SHARES VALUE ($)
- ----------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
INDUSTRIALS - 4.7%
INDUSTRIAL CONGLOMERATES - 4.7% General Electric Co. 1,253,400 38,253,768
Industrial Conglomerates Total 38,253,768
-----------
INDUSTRIALS TOTAL 38,253,768
INFORMATION TECHNOLOGY - 37.1%
COMMUNICATIONS EQUIPMENT - 3.9% Cisco Systems, Inc. (a) 1,349,700 31,744,944
Communications Equipment Total 31,744,944
COMPUTERS & PERIPHERALS - 2.8% Dell, Inc. (a) 666,900 22,421,178
Computers & Peripherals Total 22,421,178
IT SERVICES - 1.8% Paychex, Inc. 420,600 14,973,360
IT Services Total 14,973,360
SEMICONDUCTORS &
SEMICONDUCTOR EQUIPMENT - 22.2% Altera Corp. (a) 1,198,300 24,505,235
Analog Devices, Inc. 359,500 17,259,595
Applied Materials, Inc. (a) 1,036,200 22,153,956
ASML Holding N.V., N.Y.
Registered Shares (a) 1,395,800 25,585,014
Intel Corp. 854,900 23,253,280
Maxim Integrated Products, Inc. 172,800 8,137,152
Microchip Technology, Inc. 408,100 10,839,136
Novellus Systems, Inc. (a) 594,500 18,899,155
Xilinx, Inc. (a) 769,600 29,244,800
Semiconductors & Semiconductor
Equipment Total 179,877,323
SOFTWARE - 6.4% Microsoft Corp. 1,540,500 38,466,285
SAP AG, ADR 332,900 13,086,299
Software Total 51,552,584
-----------
INFORMATION TECHNOLOGY TOTAL 300,569,389
-----------
TOTAL COMMON STOCKS (COST OF $668,092,726) 805,923,113
<Caption>
PAR ($)
- ----------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM OBLIGATION - 1.0%
Repurchase agreement with
State Street Bank & Trust
Co., dated 03/31/04, due
04/01/04 at 0.960%,
collateralized by U.S.
Treasury Notes with
various maturities to
02/15/07, market value of
$7,931,620 (repurchase
proceeds $7,772,207)
(cost of $7,772,000) 7,772,000 7,772,000
TOTAL INVESTMENTS - 100.3%
(COST OF $675,864,726) (b) 813,695,113
OTHER ASSETS & LIABILITIES, NET - (0.3)% (2,478,237)
NET ASSETS - 100.0% 811,216,876
NOTES TO INVESTMENT PORTFOLIO:
</Table>
(a) Non-income producing.
(b) Cost for both financial statement and federal income tax purposes is the
same.
<Table>
<Caption>
ACRONYM NAME
- -----------------------------------------------------------------------
ADR American Depositary Receipt
</Table>
See notes to financial statements.
8
<Page>
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2004 (UNAUDITED) COLUMBIA GROWTH STOCK FUND
<Table>
<Caption>
($)
- ------------------------------------------------------------------------------------------------------------------------------
ASSETS Investments, at cost 675,864,726
--------------
Investments, at value 813,695,113
Cash 843
Receivable for:
Fund shares sold 382,758
Interest 207
Dividends 517,474
Deferred Trustees' compensation plan 17,292
Other assets 9,806
--------------
Total Assets 814,623,493
LIABILITIES Expense reimbursement due to Investment Advisor 69,150
Payable for:
Fund shares repurchased 1,760,164
Investment advisory fee 408,594
Administration fee 92,076
Transfer agent fee 710,069
Pricing and bookkeeping fees 57,924
Trustees' fees 2,228
Distribution and service fees 289,120
Deferred Trustees' fees 17,292
--------------
Total Liabilities 3,406,617
NET ASSETS 811,216,876
COMPOSITION OF NET ASSETS Paid-in capital 1,162,671,636
Accumulated net investment loss (2,827,068)
Accumulated net realized loss (486,458,079)
Net unrealized appreciation on investments 137,830,387
NET ASSETS 811,216,876
CLASS A Net assets 81,152,936
Shares outstanding 7,310,194
Net asset value per share 11.10(a)
Maximum offering price per share ($11.10/0.9425) 11.78(b)
CLASS B Net assets 300,045,075
Shares outstanding 28,308,990
Net asset value and offering price per share 10.60(a)
CLASS C Net assets 25,855,182
Shares outstanding 2,440,919
Net asset value and offering price per share 10.59(a)
CLASS Z Net assets 404,163,683
Shares outstanding 45,184,615
Net asset value, offering and redemption price per share 8.94
</Table>
(a) Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
(b) On sales of $50,000 or more the offering price is reduced.
See notes to financial statements.
9
<Page>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 2004 (UNAUDITED) COLUMBIA GROWTH STOCK FUND
<Table>
<Caption>
($)
- ------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME Dividends 3,729,755
Interest 48,633
--------------
Total Investment Income (net of foreign taxes withheld of $77,219) 3,778,388
EXPENSES Investment advisory fee 2,437,921
Administration fee 588,164
Distribution fee:
Class A 42,612
Class B 1,193,333
Class C 106,905
Service fee:
Class A 106,533
Class B 397,778
Class C 35,635
Transfer agent fee:
Class A 205,337
Class B 883,760
Class C 71,006
Class Z 381,727
Pricing and bookkeeping fees 115,873
Trustees' fees 14,387
Custody fee 11,474
Non-recurring costs (See Note 7) 5,562
Costs assumed by Investment Advisor (See Note 7) (5,562)
Other expenses 125,499
--------------
Total Expenses 6,717,944
Fees and expenses waived or reimbursed by Transfer Agent - Class Z (104,958)
Fees waived by Distributor - Class A (21,306)
Custody earnings credit (498)
--------------
Net Expenses 6,591,182
--------------
Net Investment Loss (2,812,794)
NET REALIZED AND UNREALIZED GAIN Net realized gain on investments 64,617,147
(LOSS) ON INVESTMENTS Net change in unrealized appreciation/depreciation on investments (4,364,268)
--------------
Net Gain 60,252,879
--------------
Net Increase in Net Assets from Operations 57,440,085
</Table>
See notes to financial statements.
10
<Page>
STATEMENT OF CHANGES IN NET ASSETS
COLUMBIA GROWTH STOCK FUND
<Table>
<Caption>
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED
MARCH 31, SEPTEMBER 30,
INCREASE (DECREASE) IN NET ASSETS: 2004 ($) 2003 ($)
- ---------------------------------------------------------------------------------------------------------------------------------
OPERATIONS Net investment loss (2,812,794) (4,504,325)
Net realized gain (loss) on investments 64,617,147 (82,513,256)
Net change in unrealized appreciation/depreciation
on investments (4,364,268) 213,477,987
---------------------------------
Net Increase from Operations 57,440,085 126,460,406
SHARE TRANSACTIONS Class A:
Subscriptions 8,067,897 52,887,088
Redemptions (14,749,430) (67,933,556)
---------------------------------
Net Decrease (6,681,533) (15,046,468)
Class B:
Subscriptions 10,044,934 23,561,376
Redemptions (34,632,214) (72,246,627)
---------------------------------
Net Decrease (24,587,280) (48,685,251)
Class C:
Subscriptions 1,558,978 5,839,044
Redemptions (5,593,977) (10,240,886)
---------------------------------
Net Decrease (4,034,999) (4,401,842)
Class Z:
Subscriptions 37,654,634 36,268,004
Redemptions (47,283,918) (72,221,109)
---------------------------------
Net Decrease (9,629,284) (35,953,105)
Net Decrease from Share Transactions (44,933,096) (104,086,666)
---------------------------------
Total Increase in Net Assets 12,506,989 22,373,740
NET ASSETS Beginning of period 798,709,887 776,336,147
End of period (including accumulated net investment
loss of $(2,827,068) and $(14,274), respectively) 811,216,876 798,709,887
CHANGES IN SHARES Class A:
Subscriptions 715,724 5,514,819
Redemptions (1,316,508) (6,824,132)
---------------------------------
Net Decrease (600,784) (1,309,313)
Class B:
Subscriptions 931,863 2,524,637
Redemptions (3,229,273) (7,881,240)
---------------------------------
Net Decrease (2,297,410) (5,356,603)
Class C:
Subscriptions 145,014 629,913
Redemptions (519,780) (1,111,906)
---------------------------------
Net Decrease (374,766) (481,993)
Class Z:
Subscriptions (a) 4,158,663 4,591,242
Redemptions (a) (5,226,260) (9,410,280)
---------------------------------
Net Decrease (1,067,597) (4,819,038)
</Table>
(a) Capital share activity prior to July 25, 2003 has been restated to reflect a
3-for-1 share split.
See notes to financial statements.
11
<Page>
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2004 (UNAUDITED) COLUMBIA GROWTH STOCK FUND
NOTE 1. ORGANIZATION
Columbia Growth Stock Fund (the "Fund"), a series of Columbia Funds Trust XI
(the "Trust"), is a diversified portfolio. The Trust is a Massachusetts business
trust registered under the Investment Company Act of 1940, as amended, as an
open-end management investment company.
INVESTMENT GOALS
The Fund seeks long-term growth of capital.
FUND SHARES
The Fund may issue an unlimited number of shares, and offers four classes of
shares: Class A, Class B, Class C and Class Z. Each share class has its own
sales charge and expense structure.
Class A shares are subject to a maximum front-end sales charge of 5.75% based on
the amount of initial investment. Class A shares purchased without an initial
sales charge are subject to a 1.00% contingent deferred sales charge ("CDSC") on
shares sold within eighteen months on an original purchase of $1 million to $25
million. Class B shares are subject to a maximum CDSC of 5.00% based upon the
holding period after purchase. Class B shares will convert to Class A shares in
a certain number of years after purchase, depending on the program under which
shares were purchased. Class C shares are subject to a 1.00% CDSC on shares sold
within one year after purchase. Class Z shares are offered continuously at net
asset value. There are certain restrictions on the purchase of Class Z shares,
as described in the Fund's prospectus.
On October 13, 2003, the Liberty Growth Stock Fund was renamed Columbia Growth
Stock Fund. Also on this date, the Liberty-Stein Roe Funds Investment Trust was
renamed Columbia Funds Trust XI.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
USE OF ESTIMATES
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America ("GAAP") requires management
to make estimates and assumptions that affect the reported amounts of assets and
liabilities, the disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenue and expenses during
the reporting period. Actual results could differ from those estimates. The
following is a summary of significant accounting policies consistently followed
by the Fund in the preparation of its financial statements.
SECURITY VALUATION
Equity securities are valued at the last sale price at the close of the
principal exchange on which they trade. Unlisted securities or listed securities
for which there were no sales during the day are valued at the closing bid price
on such exchanges or over-the-counter markets.
Short-term debt obligations maturing within 60 days are valued at amortized
cost, which approximates market value.
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 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 Fund's
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 Fund's net asset value. If events materially affecting the
values of such foreign securities occur and it is determined that market
quotations are not reliable, then these foreign securities will be valued at
their fair value using procedures approved by the Board of Trustees.
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 Trustees.
12
<Page>
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.
REPURCHASE AGREEMENTS
The Fund may engage in repurchase agreement transactions with institutions that
the Fund's investment advisor has determined are creditworthy. The Fund, through
its custodian, receives delivery of underlying securities collateralizing a
repurchase agreement. Collateral is at least equal, at all times, to the value
of the repurchase obligation including interest. A repurchase agreement
transaction involves certain risks in the event of default or insolvency of the
counterparty. These risks include possible delays or restrictions upon the
Fund's ability to dispose of the underlying securities and a possible decline in
the value of the underlying securities during the period while the Fund seeks to
assert its rights.
INCOME RECOGNITION
Interest income is recorded on the accrual basis. Corporate actions and dividend
income are recorded on the ex-date, except for certain foreign securities which
are recorded as soon after ex-date as the Fund becomes aware of such, net of
non-reclaimable tax withholdings.
DETERMINATION OF CLASS NET ASSET VALUES
All income, expenses (other than class-specific expenses, as shown on the
Statement of Operations), and realized and unrealized gains (losses), are
allocated to each class of the Fund on a daily basis, based on the relative net
assets of each class, for purposes of determining the net asset value of each
class.
FEDERAL INCOME TAX STATUS
The Fund intends to qualify each year as a "regulated investment company" under
Subchapter M of the Internal Revenue Code, as amended, and will distribute
substantially all of its taxable income, if any, for its tax year, and as such
will not be subject to federal income taxes. In addition, by distributing in
each calendar year substantially all of its net investment income, capital gains
and certain other amounts, if any, the Fund will not be subject to federal
excise tax. Therefore, no federal income or excise tax provision is recorded.
DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders are recorded on ex-date. Net realized capital
gains, if any, are distributed at least annually.
NOTE 3. FEDERAL TAX INFORMATION
Unrealized appreciation and depreciation at March 31, 2004, based on cost of
investments for federal income tax purposes was:
<Table>
Unrealized appreciation $ 156,290,991
Unrealized depreciation (18,460,604)
---------------
Net unrealized appreciation $ 137,830,387
</Table>
The following capital loss carryforwards, determined as of September 30, 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:
<Table>
<Caption>
YEAR OF EXPIRATION CAPITAL LOSS CARRYFORWARDS
- --------------------------------------------------------------
2008 $ 22,583,899
2009 201,991,560
2011 253,937,044
---------------
$ 478,512,503
</Table>
Of these capital loss carryforwards, $219,806,550 ($22,583,899 expiring
9/30/2008 and $197,222,651 expiring 9/30/2009) and $4,768,909 (expiring
9/30/2009) were obtained upon the Fund's mergers with Liberty Growth Stock Fund
and Stein Roe Focus Fund, respectively.
Under current tax rules, certain currency and capital losses realized after
October 31 may be deferred and treated as occurring on the first day of the
following fiscal year. As determined on September 30, 2003, post-October capital
losses of $65,292,181 attributed to security transactions were deferred to
October 1, 2003.
NOTE 4. FEES AND COMPENSATION PAID TO AFFILIATES
INVESTMENT ADVISORY FEE
Columbia Management Advisors, Inc. ("Columbia") is the investment advisor to the
Fund. 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"). Columbia
provides administrative and other services. Columbia receives a monthly
investment
13
<Page>
advisory fee based on the Fund's average daily net assets as follows:
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE RATE
- ----------------------------------------------------------------------
First $500 million 0.60%
Next $500 million 0.55%
Next $1 billion 0.50%
Over $2 billion 0.45%
</Table>
For the six months ended March 31, 2004, the Fund's annualized effective
investment advisory fee rate was 0.58%.
ADMINISTRATION FEE
Columbia provides accounting and other services to the Fund for a monthly
administration fee based on the Fund's average daily net assets as follows:
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE RATE
- ----------------------------------------------------------------------
First $500 million 0.150%
Next $500 million 0.125%
Next $500 million 0.100%
Next $500 million 0.075%
Over $2 billion 0.050%
</Table>
Prior to November 1, 2003, Columbia was entitled to receive a monthly
administration fee based on the Fund's average daily net assets as follows:
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE RATE
- ----------------------------------------------------------------------
First $500 million 0.150%
Next $500 million 0.125%
Next $1 billion 0.100%
Over $2 billion 0.075%
</Table>
For the six months ended March 31, 2004, the Fund's annualized effective
administration fee rate was 0.14%.
PRICING AND BOOKKEEPING FEES
Columbia is responsible for providing pricing and bookkeeping services to the
Fund under a pricing and bookkeeping agreement. Under a separate agreement (the
"Outsourcing Agreement"), Columbia has delegated those functions to State Street
Corporation ("State Street"). Columbia pays the total fees collected to State
Street under the Outsourcing Agreement.
Under its pricing and bookkeeping agreement with the Fund, Columbia receives
from the Fund an annual flat fee of $10,000 paid monthly, and in any month that
the Fund's average daily net assets exceed $50 million, an additional monthly
fee. The additional fee rate is calculated by taking into account the fees
payable to State Street under the Outsourcing Agreement. This rate is applied to
the average daily net assets of the Fund for that month. The Fund also pays
additional fees for pricing services. For the six months ended March 31, 2004,
the Fund's annualized effective pricing and bookkeeping fee rate was 0.028%.
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 Fund. For such services, the Transfer Agent receives
a fee, paid monthly, at the annual rate of $28.00 per open account per class.
The Transfer Agent also receives reimbursement for certain out-of-pocket
expenses.
The Transfer Agent has voluntarily agreed to waive a portion of the Class Z
transfer agent fee so that such fee (exclusive of out-of-pocket expenses) will
not exceed 0.05% annually of the Class Z average daily net assets. The Transfer
Agent, at its discretion, may revise or discontinue this arrangement any time.
Prior to November 1, 2003, the Transfer Agent was entitled to receive a monthly
transfer agent fee at the annual rate of 0.06% of the Fund's average daily net
assets plus flat-rate charges based on the number of shareholder accounts and
transactions. The Transfer Agent was also entitled to receive reimbursement for
certain out-of-pocket expenses.
UNDERWRITING DISCOUNTS, SERVICE AND DISTRIBUTION FEES
Columbia Funds Distributor, Inc. (the "Distributor"), formerly Liberty Funds
Distributor, Inc., an indirect, wholly owned subsidiary of BOA, is the principal
underwriter of the Fund. For the six months ended March 31, 2004, the
Distributor has retained net underwriting discounts of $11,284 on sales of the
Fund's Class A shares and received CDSC fees of $2,508, $438,319 and $3,108 on
Class A, Class B and Class C share redemptions, respectively.
The Fund has adopted a 12b-1 plan (the "Plan") which requires the payment of a
monthly service fee to the Distributor at the annual rate of 0.25% of the
average daily net assets attributable to Class A, Class B and Class C shares of
the Fund. The Plan also requires the payment of a monthly distribution fee to
the Distributor at the annual rates of 0.10%, 0.75% and
14
<Page>
0.75% of the average daily net assets attributable to Class A, Class B and Class
C shares of the Fund, respectively. The Distributor has voluntarily agreed to
waive a portion of the Class A share distribution fee so that it will not exceed
0.05% annually of Class A average daily net assets.
The CDSC and the fees received from the Plan are used principally as repayment
to the Distributor for amounts paid by the Distributor to dealers who sold such
shares.
CUSTODY CREDITS
The Fund has an agreement with its custodian bank under which custody fees may
be reduced by balance credits. The Fund could have invested a portion of the
assets utilized in connection with the expense offset arrangement in an
income-producing asset if it had not entered into such an agreement.
FEES PAID TO OFFICERS AND TRUSTEES
The Fund pays no compensation to its officers, all of whom are employees of
Columbia or its affiliates.
The Fund's Trustees may participate in a deferred compensation plan, which may
be terminated at any time. Obligations of the plan will be paid solely out of
the Fund's assets.
NOTE 5. PORTFOLIO INFORMATION
For the six months ended March 31, 2004, the cost of purchases and proceeds from
sales of securities, excluding short-term obligations, were $382,035,549 and
$421,939,921, respectively.
NOTE 6. LINE OF CREDIT
The Fund and other affiliated funds participate in a $350,000,000 credit
facility, which is used for temporary or emergency purposes to facilitate
portfolio liquidity. Interest is charged to the Fund based on its borrowings. In
addition, the Fund has agreed to pay commitment fees on its pro-rata portion of
the unutilized line of credit. The commitment fee is included in "Other
expenses" on the Statement of Operations. For the six months ended March 31,
2004, the Fund did not borrow under this arrangement.
NOTE 7. DISCLOSURE OF SIGNIFICANT RISKS AND CONTINGENCIES
INDUSTRY FOCUS
The Fund may focus its investments in certain industries, subjecting it to
greater risk than a fund that is more diversified.
LEGAL PROCEEDINGS
Columbia, the Distributor, and certain of their affiliates (collectively, "The
Columbia Group") have received information requests and subpoenas from various
regulatory and law enforcement authorities in connection with their
investigations of late trading and market timing in mutual funds. The Columbia
Group has not uncovered any instances where Columbia or the Distributor were
knowingly involved in late trading of mutual fund shares.
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
Division of Enforcement and
15
<Page>
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.
For the six months ended March 31, 2004, Columbia has assumed $5,562 of legal,
consulting services and Trustees fees incurred by the Fund in connection with
these matters.
NOTE 8. SUBSEQUENT EVENT
On April 1, 2004, FleetBoston, including the Fund's investment advisor and
distributor, was acquired by BOA. The merger did not change the way the Fund is
managed, the investment personnel assigned to manage the Fund or the fees paid
by the Fund.
NOTE 9. CAPITAL ACTIVITY
On July 25, 2003, there was a 3-for-1 split on Class Z shares. The accompanying
prior period financial highlights for Class Z have been restated to reflect the
3-for-1 split.
16
<Page>
FINANCIAL HIGHLIGHTS
COLUMBIA GROWTH STOCK FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<Table>
<Caption>
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED PERIOD ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS A SHARES 2004 2003 2002(a)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.36 $ 8.83 $ 9.98
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b) (0.04) (0.05) (0.01)
Net realized and unrealized gain (loss) on investments 0.78 1.58 (1.14)
---------------- ------------- -------------
Total from Investment Operations 0.74 1.53 (1.15)
NET ASSET VALUE, END OF PERIOD $ 11.10 $ 10.36 $ 8.83
Total return (c)(d) 7.14%(e) 17.33% (11.52)%(e)
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Operating expenses (f) 1.57%(g) 1.54% 1.63%(g)
Interest expense -- --%(h) --
Net expenses (f) 1.57%(g) 1.54% 1.63%(g)
Net investment loss (f) (0.67)%(g) (0.53)% (0.41)%(g)
Waiver/reimbursement 0.05%(g) 0.05% 0.05%(g)
Portfolio turnover rate 46%(e) 108% 71%
Net assets, end of period (000's) $ 81,153 $ 81,967 $ 81,442
</Table>
(a) Class A shares were initially offered on July 15, 2002. Per share data and
total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming no initial sales charge or
contingent deferred sales charge.
(d) Had the 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) Rounds to less than 0.01%.
17
<Page>
<Table>
<Caption>
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED PERIOD ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS B SHARES 2004 2003 2002(a)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.93 $ 8.52 $ 9.65
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b) (0.08) (0.11) (0.02)
Net realized and unrealized gain (loss) on investments 0.75 1.52 (1.11)
--------------- ------------- -------------
Total from Investment Operations 0.67 1.41 (1.13)
NET ASSET VALUE, END OF PERIOD $ 10.60 $ 9.93 $ 8.52
Total return (c) 6.75%(d) 16.55% (11.71)%(d)
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Operating expenses (e) 2.34%(f) 2.24% 2.33%(f)
Interest expense -- --%(g) --
Net expenses (e) 2.34%(f) 2.24% 2.33%(f)
Net investment loss (e) (1.44)%(f) (1.23)% (1.11)%(f)
Portfolio turnover rate 46%(d) 108% 71%
Net assets, end of period (000's) $ 300,045 $ 303,943 $ 306,561
</Table>
(a) Class B shares were initially offered on July 15, 2002. Per share data and
total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming no contingent deferred sales
charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
(g) Rounds to less than 0.01%.
18
<Page>
<Table>
<Caption>
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED PERIOD ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS C SHARES 2004 2003 2002(a)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.92 $ 8.52 $ 9.64
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b) (0.07) (0.11) (0.02)
Net realized and unrealized gain (loss) on investments 0.74 1.51 (1.10)
--------------- ------------- -------------
Total from Investment Operations 0.67 1.40 (1.12)
NET ASSET VALUE, END OF PERIOD $ 10.59 $ 9.92 $ 8.52
Total return (c) 6.75%(d) 16.43% (11.62)%(d)
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Operating expenses (e) 2.28%(f) 2.24% 2.33%(f)
Interest expense -- --%(g) --
Net expenses (e) 2.28%(f) 2.24% 2.33%(f)
Net investment loss (e) (1.38)%(f) (1.23)% (1.11)%(f)
Portfolio turnover rate 46%(d) 108% 71%
Net assets, end of period (000's) $ 25,855 $ 27,938 $ 28,093
</Table>
(a) Class C shares were initially offered on July 15, 2002. Per share data and
total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming no contingent deferred sales
charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
(g) Rounds to less than 0.01%.
19
<Page>
<Table>
<Caption>
(UNAUDITED)
SIX MONTHS ENDED
MARCH 31, YEAR ENDED SEPTEMBER 30,
CLASS Z SHARES 2004 2003(a) 2002(a)(b) 2001(a) 2000(a) 1999(a)
- ----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
BEGINNING OF PERIOD $ 8.32 $ 7.05 $ 9.45 $ 19.89 $ 15.73 $ 11.57
INCOME FROM INVESTMENT
OPERATIONS:
Net investment
income (loss) (c) --(d) --(d) 0.01(e) (0.01)(e) (0.08)(e) (0.03)(e)
Net realized and
unrealized gain (loss)
on investments 0.62 1.27 (2.41) (7.77) 5.39 4.19
---------- --------- --------- --------- ----------- ---------
Total from Investment
Operations 0.62 1.27 (2.40) (7.78) 5.31 4.16
LESS DISTRIBUTIONS
DECLARED TO
SHAREHOLDERS:
From net realized gains -- -- -- (2.66) (1.15) --
NET ASSET VALUE, END OF
PERIOD $ 8.94 $ 8.32 $ 7.05 $ 9.45 $ 19.89 $ 15.73
Total return (f) 7.45%(g)(h) 17.96%(g) (25.34)%(g) (43.48)% 35.04% 35.98%
RATIOS TO AVERAGE
NET ASSETS/
SUPPLEMENTAL DATA:
Operating expenses (i) 0.92%(j) 1.00% 0.88%(e) 0.95%(e) 0.95%(e) 0.97%(e)(l)
Interest expense -- --%(k) -- -- -- --
Net expenses (i) 0.92%(j) 1.00% 0.88%(e) 0.95%(e) 0.95%(e) 0.97%(e)(l)
Net investment
income (loss) (i) (0.02)%(j) 0.01% 0.08%(e) (0.05)%(e) (0.44)%(e) (0.18)%(e)(l)
Waiver/reimbursement 0.05%(j) 0.06% 0.01% -- -- --
Portfolio turnover rate 46%(h) 108% 71% 73%(m) 74%(m) 57%(m)
Net assets, end of
period (000's) $ 404,164 $ 384,861 $ 360,240 $ 551,474 $ 1,083,271 $ 831,338
</Table>
(a) Per share data has been restated to reflect a 3-for-1 share split effective
July 25, 2003.
(b) On July 15, 2002, the Stein Roe Growth Stock Fund was redesignated Liberty
Growth Stock Fund, 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) Per share amounts and ratios reflect income and expenses inclusive of the
Fund's proportionate share of the income and expenses of the SR&F Growth
Stock Portfolio prior to the termination of their master/feeder fund
structure on July 12, 2002.
(f) Total return at net asset value assuming all distributions reinvested.
(g) Had the Investment Advisor/Transfer Agent not waived 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.
(k) Round to less than 0.01%.
(l) During the year ended September 30, 1999, the Fund experienced a one-time
reduction in its expenses of three basis points as a result of expenses
accrued in a prior period. The Fund's ratios disclosed above reflect the
actual rate at which expenses were incurred throughout the year ended
September 30, 1999 without the reduction.
(m) Portfolio turnover rate disclosed is for the SR&F Growth Stock Portfolio.
20
<Page>
IMPORTANT INFORMATION ABOUT THIS REPORT
COLUMBIA GROWTH STOCK FUND
TRANSFER AGENT
Columbia Funds Services, Inc.
P.O. Box 8081
Boston MA 02266-8081
800.345.6611
DISTRIBUTOR
Columbia Funds Distributor, Inc.
One Financial Center
Boston MA 02111
INVESTMENT ADVISOR
Columbia Management Advisors, Inc.
100 Federal Street
Boston MA 02110
The fund mails one shareholder report to each shareholder address. If you would
like more than one report, please call shareholder services at 800-345-6611 and
additional reports will be sent to you.
This report has been prepared for shareholders of Columbia Growth Stock Fund.
This report may also be used as sales literature when preceded or accompanied by
the current prospectus which provides details of sales charges, investment
objectives and operating policies of the fund and with the most recent copy of
the Columbia Funds Performance Update.
A description of the policies and procedures that the fund uses to determine how
to vote proxies relating to its portfolio securities is available (i) without
charge, upon request, by calling 800-345-6611 and (ii) on the Securities and
Exchange Commission's website at http://www.sec.gov.
21
<Page>
[GRAPHIC]
Help your fund reduce printing and postage costs! Elect to get your shareholder
reports by electronic delivery. With Columbia's eDelivery program, you receive
an e-mail message when your shareholder report becomes available online. If your
fund account is registered with Columbia Funds, you can sign up quickly and
easily on our website at www.columbiafunds.com.
Please note -- if you own your fund shares through a financial institution,
contact the institution to see if it offers electronic delivery. If you own your
fund shares through a retirement plan, electronic delivery may not be available
to you.
COLUMBIA GROWTH STOCK FUND SEMIANNUAL REPORT, MARCH 31, 2004
PRSRT STD
U.S. POSTAGE
PAID
HOLLISTON, MA
PERMIT NO. 20
[COLUMBIAFUNDS(R) LOGO]
A MEMBER OF COLUMBIA MANAGEMENT GROUP
(C)2004 COLUMBIA FUNDS DISTRIBUTOR, INC.
ONE FINANCIAL CENTER, BOSTON, MA 02111-2621
800.345.6611 www.columbiafunds.com
755-03/634R-0304 (05/04) 04/1102
[GRAPHIC]
COLUMBIA THEMATIC EQUITY FUNDS
SEMIANNUAL REPORT
MARCH 31, 2004
[COLUMBIAFUNDS(R) LOGO]
A MEMBER OF COLUMBIA MANAGEMENT GROUP
<Page>
TABLE OF CONTENTS
<Table>
Economic Update 1
Columbia Global Thematic Equity Fund
Fund Profile 2
Performance Information 3
Portfolio Managers' Report 4
Columbia European Thematic Equity Fund
Fund Profile 6
Performance Information 7
Portfolio Managers' Report 8
Financial Statements 10
Investment Portfolios 10
Statements of Assets and Liabilities 17
Statements of Operations 18
Statements of Changes in Net Assets 19
Notes to Financial Statements 20
Financial Highlights 25
Important Information About This Report 27
Columbia Funds 28
</Table>
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 THEMATIC EQUITY 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
intends to deliver additional research and management capabilities, as well as
new products to you.
There are no immediate changes planned for fund names 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 requires 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 want you to know that all of the members of your fund's Board of Trustees are
independent of the fund's advisor and its affiliates. In addition, the board has
been energetic over the past year in strengthening its capacity to oversee the
Columbia funds. Recently, the Board of Trustees:
- - APPOINTED A CHIEF COMPLIANCE OFFICER OF THE COLUMBIA FUNDS, WHO REPORTS
DIRECTLY TO EACH FUND'S AUDIT COMMITTEE. TRUSTEES WERE ALSO ASSIGNED TO FOUR
SEPARATE INVESTMENT OVERSIGHT COMMITTEES, EACH DEDICATED TO MONITORING
PERFORMANCE OF INDIVIDUAL FUNDS.
- - VOTED TO DOUBLE THE REQUIRED INVESTMENT BY EACH TRUSTEE IN THE COLUMBIA FUNDS
-- TO FURTHER ALIGN THE INTERESTS OF THE TRUSTEES WITH THOSE OF OUR FUND
SHAREHOLDERS. AT THE SAME TIME, NEW POLICIES WERE INSTITUTED REQUIRING ALL
INVESTMENT PERSONNEL AND TRUSTEES TO HOLD THEIR COLUMBIA FUND SHARES FOR A
MINIMUM OF ONE YEAR (UNLESS EXTRAORDINARY CIRCUMSTANCES WARRANT AN EXCEPTION
TO BE GRANTED BY SENIOR EXECUTIVES OF THE ADVISOR FOR INVESTMENT PERSONNEL
AND BY A DESIGNATED COMMITTEE FOR THE BOARD).
Both your fund's trustees 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 during the period and the performance of your Columbia fund. These
discussions are followed by financial statements for your fund. We hope that you
will take time to read this report and discuss it with your financial advisor if
you have any questions.
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 Trustees President, Columbia Funds
J. Kevin Connaughton was named president of Columbia Funds on February 27, 2004.
<Page>
ECONOMIC UPDATE
COLUMBIA THEMATIC EQUITY FUNDS
The pace of economic growth picked up around the world during the six-month
period from October 1, 2003 through March 31, 2004. The US economy moved ahead
during the period at an estimated annualized pace of about 4.0%. In general,
Asian economies benefited as consumer and business spending increased. Exporting
countries such as Hong Kong and Taiwan also benefited from a worldwide increase
in demand for products manufactured in Asia. Growth in Japan was 7.0% in the
fourth quarter of 2003, and the outlook is for solid growth in 2004.
STOCK MARKETS LIFTED BY FAVORABLE ECONOMIC NEWS
Equity market performance was stronger worldwide during the first half of this
reporting period than in the second half. Lower-than-expected job growth in the
US early in the first quarter of 2004 weighed on the world's stock markets
because so many are linked to activity in the United States. Nevertheless, most
major stock markets delivered solid returns for the six-month period. The S&P
500 Index returned 14.08%. The MSCI EAFE Index, a broad measure of performance
in the major developed markets outside the United States, returned 22.16%.
Japan's Nikkei 225 Index gained 14.64%.
In the United States and Europe, cyclical stocks led the markets during the
first half of the period. During the second half of the period, defensive stocks
were rewarded as investors looked beyond economically-sensitive sectors as the
recovery matured. In Japan, export and manufacturing companies were solid
performers.
The outlook for the global markets is clearly dependent on a sustainable
economic revival. Estimates for 2004 range from low single-digit growth in
Europe to higher levels in other regions.
EUROPE'S ECONOMIES ARE LACKLUSTER
European economies generally trailed most of the developed world, although
growth in the UK was somewhat stronger than in continental Europe. The euro
zone--the 12 countries that share the euro as a common currency--is still
struggling with relatively high unemployment, lackluster consumer spending and a
euro whose strength has generally made European goods less competitive around
the world.
JAPAN ON THE MEND
After more than a decade of stagnation, the fundamentals underlying the Japanese
economy are strong. Corporate profits are increasing and the banking system is
on the mend. Japan's recovery also depends, in part, on exports to other
regional economies. But a combination of export growth and higher consumer
spending is expected to support the current recovery.
[SIDENOTE]
SUMMARY
FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2004
- - ECONOMIC DEMAND STRENGTHENED AROUND THE WORLD, WHICH TRANSLATED INTO GAINS
FOR STOCK MARKETS IN DEVELOPED ECONOMIES. BOTH THE MSCI WORLD INDEX AND THE
RUSSELL 3000 INDEX DELIVERED DOUBLE-DIGIT RETURNS.
[CHART]
<Table>
MSCI INDEX 17.26%
RUSSELL INDEX 14.94%
</Table>
- - STOCK MARKETS IN EUROPE AND JAPAN BENEFITED FROM IMPROVED ECONOMIC ACTIVITY.
BOTH THE MSCI EUROPE INDEX AND THE NIKKEI 225 INDEX ROSE DURING THE PERIOD.
[CHART]
<Table>
MSCI INDEX 21.43%
NIKKEI INDEX 14.64%
</Table>
The Morgan Stanley Capital International (MSCI) World Index is an unmanaged
index that tracks the performance of global 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 MSCI Europe Index is a broad-based, unmanaged index that tracks the
performance of common stocks in the developed markets of Europe.
The Nikkei 225 Index is a price-weighted average of 225 top-rated Japanese
companies listed in the First Section of the Tokyo Stock Exchange.
1
<Page>
FUND PROFILE
COLUMBIA GLOBAL THEMATIC EQUITY FUND
The information below gives you a snapshot of your fund at the end of the
reporting period. Your fund is actively managed and the composition of its
portfolio will change over time.
TOP 5 COUNTRIES AS OF 03/31/04 (%)
<Table>
United States 52.2
Japan 9.0
Switzerland 7.4
United Kingdom 7.1
South Korea 4.2
</Table>
TOP 5 SECTORS AS OF 03/31/04 (%)
<Table>
Financials 22.4
Information technology 16.6
Consumer discretionary 15.8
Health care 12.4
Industrials 9.5
</Table>
TOP 10 HOLDINGS AS OF 03/31/04 (%)
<Table>
Citigroup 5.7
Pfizer 4.2
General Electric 3.9
UBS AG 3.1
Nomura Holdings 3.1
Microsoft 2.7
PepsiCo 2.6
Samsung Electronics 2.5
British Sky Broadcasting Group PLC 2.4
Alltel 2.3
</Table>
Sector breakdown and portfolio holdings are calculated as a percentage of net
assets. Countries are calculated as a percentage of total investments.
(C) 2004 Morningstar, Inc. All Rights Reserved. The information contained
herein: (1) is proprietary to Morningstar and/or its content providers; (2) may
not be copied or distributed; and (3) is not warranted to be accurate, complete
or timely. Neither Morningstar nor its content providers are responsible for any
damages or losses arising from any use of this information. Past performance is
no guarantee of future results.
The Morningstar Style Box(TM) reveals a fund's investment strategy. For equity
funds the vertical axis shows the market capitalization of the stocks owned and
the horizontal axis shows investment style (value, blend or growth). For
fixed-income funds the vertical axis shows the average credit quality of the
bonds owned, and the horizontal axis shows interest rate sensitivity as measured
by a bond's duration (short, intermediate or long). All of these numbers are
drawn from the data most recently provided by the fund and entered into
Morningstar's database as of month-end. Although the data are gathered from
reliable sources, Morningstar cannot guarantee completeness and accuracy. As of
03/31/2004.
[SIDENOTE]
SUMMARY
- - FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2004, THE FUND'S CLASS Z SHARES
RETURNED 16.52%.
- - THE FUND'S RETURN FELL SHORT OF ITS BENCHMARK, THE MSCI WORLD INDEX.
- - THE FUND BENEFITED FROM RISING STOCK MARKETS AROUND THE WORLD. HOWEVER, IT
TRAILED ITS BENCHMARK BECAUSE IT HAD LITTLE EXPOSURE TO UTILITIES AND
MATERIALS AND MISSED OUT ON STRONG GAINS IN THOSE SECTORS.
[CHART]
<Table>
CLASS Z SHARES 16.52%
MSCI WORLD INDEX 17.26%
</Table>
OBJECTIVE
Seeks long-term growth of capital
TOTAL NET ASSETS
$0.6 million
MORNINGSTAR STYLE BOX
[GRAPHIC]
2
<Page>
PERFORMANCE INFORMATION
COLUMBIA GLOBAL THEMATIC EQUITY FUND
[CHART]
VALUE OF A $10,000 INVESTMENT 01/02/01 - 03/31/04
<Table>
<Caption>
CLASS Z SHARES MSCI WORLD INDEX
1/2/2001 $ 10,000 $ 10,000
1/31/2001 $ 10,592 $ 10,357
2/28/2001 $ 9,710 $ 9,481
3/31/2001 $ 8,878 $ 8,856
4/30/2001 $ 9,620 $ 9,509
5/31/2001 $ 9,489 $ 9,385
6/30/2001 $ 9,188 $ 9,089
7/31/2001 $ 8,907 $ 8,968
8/31/2001 $ 8,436 $ 8,536
9/30/2001 $ 7,613 $ 7,783
10/31/2001 $ 7,804 $ 7,932
11/30/2001 $ 8,305 $ 8,400
12/31/2001 $ 8,486 $ 8,452
1/31/2002 $ 8,014 $ 8,195
2/28/2002 $ 7,863 $ 8,123
3/31/2002 $ 8,194 $ 8,498
4/30/2002 $ 7,757 $ 8,193
5/31/2002 $ 7,686 $ 8,207
6/30/2002 $ 7,285 $ 7,708
7/31/2002 $ 6,653 $ 7,058
8/31/2002 $ 6,582 $ 7,070
9/30/2002 $ 5,849 $ 6,291
10/31/2002 $ 6,391 $ 6,755
11/30/2002 $ 6,672 $ 7,118
12/31/2002 $ 6,311 $ 6,772
1/31/2003 $ 6,051 $ 6,566
2/28/2003 $ 5,880 $ 6,451
3/31/2003 $ 5,820 $ 6,430
4/30/2003 $ 6,262 $ 6,999
5/31/2003 $ 6,543 $ 7,398
6/30/2003 $ 6,724 $ 7,525
7/31/2003 $ 6,954 $ 7,677
8/31/2003 $ 7,085 $ 7,842
9/30/2003 $ 7,005 $ 7,889
10/31/2003 $ 7,506 $ 8,356
11/30/2003 $ 7,516 $ 8,482
12/31/2003 $ 7,918 $ 9,014
1/31/2004 $ 8,091 $ 9,158
2/29/2004 $ 8,233 $ 9,311
3/31/2004 $ 8,162 $ 9,249
</Table>
The graph and table do not reflect the deduction of taxes a shareholder would
pay on fund distributions or the redemption of fund shares. The Morgan Stanley
Capital International (MSCI) World Index is an unmanaged index that tracks the
performance of global stocks. Index performance is from January 2, 2001. Unlike
the fund, indices are not investments, do not incur fees or expenses and are not
professionally managed. It is not possible to directly invest in an index.
Securities in the fund may not match those in an index.
All results shown assume reinvestment of distributions.
Performance results reflect any voluntary waivers or reimbursements of fund
expenses by the advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower.
Class Z shares may be purchased by, among others: any shareholder (and family
members) of a fund distributed by Columbia Funds Distributor, Inc. (CFDI) who
(i) hold class Z shares, (ii) who holds class A shares that were obtained by
exchanging with class Z shares, or (iii) who purchased no-load shares of funds
merged with funds distributed by CFDI; clients of fee-based broker-dealers or
registered investment advisors that recommend the purchase of fund shares; any
trustee or director (and family members of a shareholder or any person listed on
an account registration for the account of any shareholder) of any fund
distributed by CFDI; insurance companies, trust companies, banks, endowments,
investment companies, and foundations; and retirement plans with assets of at
least $5 million. Investment minimums vary. For further information, please
consult the fund prospectus.
[SIDENOTE]
PERFORMANCE OF A $10,000 INVESTMENT 01/02/01 - 03/31/04 ($)
<Table>
<Caption>
SALES CHARGE: WITHOUT WITH
- ----------------------------------------
Class Z 8,162 n/a
</Table>
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.
AVERAGE ANNUAL TOTAL RETURN AS OF 03/31/04 (%)
<Table>
<Caption>
SHARE CLASS Z
- ---------------------------------------------------
INCEPTION 01/02/01
- ---------------------------------------------------
SALES CHARGE WITHOUT
- ---------------------------------------------------
6-MONTH (CUMULATIVE) 16.52
1-YEAR 40.23
LIFE -6.52
</Table>
3
<Page>
PORTFOLIO MANAGERS' REPORT
COLUMBIA GLOBAL THEMATIC EQUITY FUND
For the six-month period ended March 31, 2004, class Z shares of Columbia Global
Thematic Equity Fund returned 16.52%. Fund performance was less than that of its
benchmark, the MSCI World Index, which returned 17.26%. The fund's double-digit
return reflected strong stock market performance around the world. However, a
lower weight in materials stocks, relative to the benchmark, and lack of
exposure to utilities restrained performance.
ECONOMIC EXPANSION CONTINUED TO FUEL STOCK MARKET RALLY
Economic expansion in the United States, recovering markets in Europe and
continued demand for raw materials in China helped world equity markets achieve
solid gains during the period. Interest rates were volatile but remained low.
After nearly five months of generally rising stock prices, the markets corrected
in early March after unexpectedly low job creation numbers in the US gave
investors a reason to take profits. But stocks rallied again in the final weeks
of the period as job growth picked up.
MIXED RESULTS FROM RETIREMENT AND FULFILL YOUR DREAMS
The SAVING FOR RETIREMENT theme generally helped performance, as four of the
fund's financial stocks gained 20% or more. Swiss bank UBS AG rose 32%, and
Japanese bank Nomura Holdings gained 13% during the period. We continue to
expect strong performance from Nomura, which is uniquely positioned to benefit
from an improving economy. As the only major investment bank in Japan not
affiliated with an industrial conglomerate, we believe that Nomura's objectivity
is a valuable asset that should help it attract more merger and acquisition
business.
In the FULFILL YOUR DREAMS theme, cruise operator Carnival continued its
impressive performance with a gain of 36%. Boats have been full, customers are
paying list price and no new competitors are entering the market. Gains from
Carnival were partially offset, however, by the fund's position in Ryanair
Holdings PLC, which declined 15%. The largest low-cost airline in Europe faced
tough competition and difficulty expanding into new markets. During the period,
we added to FULFILL YOUR DREAMS holdings with the purchase of Tractor Supply, a
do-it-yourself store marketing farming supplies to the growing number of
Americans living life in rural areas beyond the suburbs.
GLOBAL DATA TRAFFIC PRODUCED MIXED RETURNS
Our investments in technology companies benefited from improved corporate
spending during the period. ASML Holding NV was a strong contributor to the
fund's return. ASML is a manufacturer of the equipment that imprints microscopic
circuitry patterns onto silicon chips. Nokia Oyj, the world's top cell phone
maker, also benefited fund performance. Cap Gemini SA was one of the fund's few
negative
[SIDENOTE]
NET ASSET VALUE PER SHARE AS OF 03/31/04 ($)
<Table>
Class Z 8.04
</Table>
DISTRIBUTIONS DECLARED PER SHARE 10/01/03 - 03/31/04 ($)
<Table>
Class Z 0.09
</Table>
HOLDINGS DISCUSSED IN THIS REPORT
AS OF 03/31/04 (%)
<Table>
UBS AG 3.1
Nomura Holdings 3.1
Carnival 2.2
Ryanair Holdings PLC 0.6
Tractor Supply 0.5
ASML Holding NV 0.5
Nokia Oyj 1.0
Signet Group PLC 0.7
Suncor Energy 1.4
Nabors Industries 1.2
</Table>
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.
4
<Page>
performers. Cap Gemini changed its emphasis from consultancy to outsourcing and
systems installation, a strategy we questioned because of generally lower
margins and higher capital commitments. As a result, we sold the position.
NEW THEME AND INCREASED ENERGY EXPOSURE
Our new theme, MORE FOR LESS, focuses on companies with strong consumer
awareness and the ability to market products at the right price, such as Signet
Group PLC. UK-based Signet is the world's largest jewelry retailer. It has
gained customers' trust with education and improved retail displays. We also
made a strategic decision to increase our energy exposure. We bought shares of
Suncor Energy, a Canadian oil company, and Nabors Industries, one of the world's
largest drilling contractors. Those stocks gained 48% and 22%, respectively,
during the period.
LOOKING AHEAD
Economic gains in Japan and China have added much-needed support to the US-led
global economic recovery. But Europe's economies are recovering more slowly
because their prosperity is closely tied to the strength of the economy in the
United States, particularly as it relates to the job market. To the extent the
US economy stalls, we would expect additional pressure on Europe's economies and
its stock markets. However, if the US recovery continues and interest rates
remain low, we believe that Europe's economies will continue to improve, to the
benefit of other global markets.
Leon Pedersen is the lead manager of Columbia Global Thematic
Equity Fund. The fund is managed by a 24-member portfolio team at
Nordea Investment Management North America, Inc. No single
individual at Nordea is responsible for making investment
decisions for the fund. Nordea is the subadvisor to the fund. The
fund's advisor is Columbia Management Advisors, Inc.
/s/ LEON PEDERSON
There are specific risks involved when investing in foreign stocks, such as
currency exchange rate fluctuations, economic change, instability of emerging
countries and political developments.
[SIDENOTE]
IF THE US RECOVERY CONTINUES AND INTEREST RATES REMAIN LOW, WE BELIEVE THE
EUROPEAN ECONOMY WILL CONTINUE TO IMPROVE, WHICH IN TURN WILL BENEFIT OTHER
GLOBAL MARKETS.
5
<Page>
FUND PROFILE
COLUMBIA EUROPEAN THEMATIC EQUITY FUND
The information below gives you a snapshot of your fund at the end of the
reporting period. Your fund is actively managed and the composition of its
portfolio will change over time.
TOP 5 SECTORS AS OF 03/31/04 (%)
<Table>
Financials 26.2
Consumer discretionary 20.0
Health care 10.4
Energy 9.9
Consumer staples 9.4
</Table>
TOP 5 COUNTRIES AS OF 03/31/04 (%)
<Table>
United Kingdom 30.6
Switzerland 18.2
France 12.4
Italy 9.2
Sweden 5.5
</Table>
TOP 10 HOLDINGS AS OF 03/31/04 (%)
<Table>
UBS AG 5.3
Nestle SA 4.9
Vodafone Group PLC 4.1
Total SA 4.1
Novartis AG 3.7
Aventis SA 3.5
British Sky Broadcasting Group PLC 3.4
Nokia Oyj 3.3
Diageo PLC 3.3
Telecom Italio S.p.A. 2.9
</Table>
Sector breakdown and portfolio holdings are calculated as a percentage of net
assets. Countries are calculated as a percentage of total investments.
(C) 2004 Morningstar, Inc. All Rights Reserved. The information contained
herein: (1) is proprietary to Morningstar and/or its content providers; (2) may
not be copied or distributed; and (3) is not warranted to be accurate, complete
or timely. Neither Morningstar nor its content providers are responsible for any
damages or losses arising from any use of this information. Past performance is
no guarantee of future results.
The Morningstar Style Box(TM) reveals a fund's investment strategy. For equity
funds the vertical axis shows the market capitalization of the stocks owned and
the horizontal axis shows investment style (value, blend or growth). For
fixed-income funds the vertical axis shows the average credit quality of the
bonds owned, and the horizontal axis shows interest rate sensitivity as measured
by a bond's duration (short, intermediate or long). All of these numbers are
drawn from the data most recently provided by the fund and entered into
Morningstar's database as of month-end. Although the data are gathered from
reliable sources, Morningstar cannot guarantee completeness and accuracy. As of
03/31/2004.
[SIDENOTE]
SUMMARY
- - FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2004, THE FUND'S CLASS Z SHARES
RETURNED 17.67%.
- - THE FUND TRAILED ITS BENCHMARK, THE MSCI EUROPE INDEX.
- - THE FUND BENEFITED FROM RISING STOCK PRICES THROUGHOUT EUROPE. HOWEVER, IT
TRAILED ITS BENCHMARK BECAUSE IT HAD MINIMAL EXPOSURE TO MATERIALS AND
UTILITIES STOCKS AND MISSED OUT ON STRONG GAINS IN THOSE SECTORS.
[CHART]
<Table>
CLASS Z SHARES 17.67%
MSCI EUROPE INDEX 21.43%
</Table>
OBJECTIVE
Seeks long-term growth of capital
TOTAL NET ASSETS
$0.3 million
MORNINGSTAR STYLE BOX
[GRAPHIC]
6
<Page>
PERFORMANCE INFORMATION
COLUMBIA EUROPEAN THEMATIC EQUITY FUND
[CHART]
VALUE OF A $10,000 INVESTMENT 01/02/01 - 03/31/04
<Table>
<Caption>
CLASS Z SHARES MSCI EUROPE INDEX
1/2/2001 $ 10,000 $ 10,000
1/31/2001 $ 10,137 $ 10,049
2/28/2001 $ 9,216 $ 9,167
3/31/2001 $ 8,412 $ 8,483
4/30/2001 $ 8,951 $ 9,086
5/31/2001 $ 8,461 $ 8,643
6/30/2001 $ 8,117 $ 8,316
7/31/2001 $ 8,038 $ 8,337
8/31/2001 $ 7,891 $ 8,120
9/30/2001 $ 7,136 $ 7,310
10/31/2001 $ 7,312 $ 7,542
11/30/2001 $ 7,548 $ 7,844
12/31/2001 $ 7,823 $ 8,045
1/31/2002 $ 7,332 $ 8,257
2/28/2002 $ 7,332 $ 7,624
3/31/2002 $ 7,636 $ 8,037
4/30/2002 $ 7,546 $ 7,976
5/31/2002 $ 7,456 $ 7,951
6/30/2002 $ 7,267 $ 7,675
7/31/2002 $ 6,360 $ 6,821
8/31/2002 $ 6,330 $ 6,819
9/30/2002 $ 5,353 $ 5,922
10/31/2002 $ 5,882 $ 6,495
11/30/2002 $ 6,161 $ 6,814
12/31/2002 $ 5,922 $ 6,566
1/31/2003 $ 5,553 $ 6,256
2/28/2003 $ 5,324 $ 6,052
3/31/2003 $ 5,533 $ 5,962
4/30/2003 $ 6,251 $ 6,766
5/31/2003 $ 6,720 $ 7,205
6/30/2003 $ 6,769 $ 7,274
7/31/2003 $ 6,849 $ 7,422
8/31/2003 $ 6,809 $ 7,408
9/30/2003 $ 6,909 $ 7,558
10/31/2003 $ 7,348 $ 8,064
11/30/2003 $ 7,697 $ 8,407
12/31/2003 $ 8,222 $ 9,097
1/31/2004 $ 8,313 $ 9,204
2/29/2004 $ 8,455 $ 9,473
3/31/2004 $ 8,129 $ 9,179
</Table>
The graph and table do not reflect the deduction of taxes a shareholder would
pay on fund distributions or the redemption of fund shares. The Morgan Stanley
Capital International (MSCI) Europe Index is an unmanaged index that tracks the
performance of global stocks. Index performance is from January 2, 2001. Unlike
the fund, indices are not investments, do not incur fees or expenses and are not
professionally managed. Securities in the fund may not match those in an index.
All results shown assume reinvestment of distributions.
Performance results reflect any voluntary waivers or reimbursements of fund
expenses by the advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower.
Class Z shares may be purchased by, among others: any shareholder (and family
members) of a fund distributed by Columbia Funds Distributor, Inc. (CFDI) who
(i) hold class Z shares, (ii) who holds class A shares that were obtained by
exchanging with class Z shares, or (iii) who purchased no-load shares of funds
merged with funds distributed by CFDI; clients of fee-based broker-dealers or
registered investment advisors that recommend the purchase of fund shares; any
trustee or director (and family members of a shareholder or any person listed on
an account registration for the account of any shareholder) of any fund
distributed by CFDI; insurance companies, trust companies, banks, endowments,
investment companies, and foundations; and retirement plans with assets of at
least $5 million. Investment minimums vary. For further information, please
consult the fund prospectus
[SIDENOTE]
PERFORMANCE OF A $10,000 INVESTMENT 01/02/01 - 03/31/04 ($)
<Table>
<Caption>
SALES CHARGE: WITHOUT WITH
- ----------------------------------------
Class Z 8,129 n/a
</Table>
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.
AVERAGE ANNUAL TOTAL RETURN AS OF 03/31/04 (%)
<Table>
<Caption>
SHARE CLASS Z
- ---------------------------------------------------
INCEPTION 01/02/01
- ---------------------------------------------------
SALES CHARGE WITHOUT
- ---------------------------------------------------
6-MONTH (CUMULATIVE) 17.67
1-YEAR 46.93
LIFE -6.12
</Table>
7
<Page>
PORTFOLIO MANAGERS' REPORT
COLUMBIA EUROPEAN THEMATIC EQUITY FUND
For the six-month period ended March 31, 2004, class Z shares of Columbia
European Thematic Equity Fund returned 17.67%. The fund fell short of its
benchmark, the MSCI Europe Index, which returned 21.43%. Market conditions were
strong across most sectors, but the fund's low weights in materials and
utilities stocks hampered performance relative to the index.
STOCKS CONTINUED TO RISE
Sparked by economic expansion in the United States, European stocks performed
well during the period. Interest rates were volatile but remained low. The
dollar weakened between November and February, then recovered modestly in March.
After nearly five months of generally rising stock prices, the markets corrected
in early March after the release of unexpectedly low job creation numbers in the
US gave investors a reason to take profits. But stocks rallied again in the
final weeks of the period as job growth picked up.
RETIREMENT AND BETTER LIFE THEMES DID WELL
The SAVING FOR RETIREMENT theme helped performance as six of the fund's
financial stocks gained 20% or more. Swiss bank UBS AG, our largest holding,
rose 32%. The company benefited from its mix of private banking, corporate
finance and exposure to the rising stock market. The fund did not own shares of
Parmalat, yet the scandal at the Italian dairy products company had a negative
effect on most of the country's banks, including our shares of UniCredito
Italiano S.p.A. In the LONGER LIFE, BETTER LIFE theme, pharmaceutical company
Aventis SA gained 48% and optical lens manufacturer Essilor International SA was
up 40%.
OUTSOURCING AND FULFILL YOUR DREAMS WERE DISAPPOINTING
Our OUTSOURCING theme generated limited returns. Although security company
Securitas AB gained 18%, it underperformed the MSCI Europe benchmark. The
company recovered after facing tough competition and staffing problems. The
leading Swiss temporary employment company Adecco SA disappointed with a
below-benchmark gain of 11%. The company was troubled by accounting issues at
its US operation. In FULFILL YOUR DREAMS, Ryanair Holdings PLC was the
worst-performing stock in the fund, losing 15%. Europe's largest low-cost
airline faced tough competition from competitors and difficulty expanding into
new markets.
GLOBAL DATA TRAFFIC PRODUCED MIXED RETURNS
THE GLOBAL DATA TRAFFIC theme, which includes telecommunications and information
technology, did well during the period as corporate spending rose. ASML Holding
NV was a strong contributor to the fund's
[SIDENOTE]
NET ASSET VALUE PER SHARE AS OF 03/31/04 ($)
<Table>
Class Z 7.99
</Table>
DISTRIBUTIONS DECLARED PER SHARE 10/01/03 - 03/31/04 ($)
<Table>
Class Z 0.16
</Table>
HOLDINGS DISCUSSED IN THIS REPORT AS OF 03/31/04 (%)
<Table>
UBS AG 5.3
UniCredito Italiano S.p.A. 1.8
Aventis SA 3.5
Essilor International SA 2.0
Securitas AB 1.1
Adecco SA 2.0
Ryanair Holdings PLC 1.2
ASML Holding NV 1.2
Nokia Oyj 3.3
Hennes & Mauritz AB 1.6
Signet Group PLC 1.3
</Table>
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.
8
<Page>
returns. ASML is a manufacturer of the equipment that imprints microscopic
circuitry patterns onto silicon chips. Nokia Oyj, the world's top cell phone
maker, also benefited fund performance. Cap Gemini SA was one of the few
negative performers. Cap Gemini changed its emphasis from consultancy to
outsourcing and systems installation, a strategy we questioned because of
generally lower margins and higher capital commitment. We sold the position.
GOOD RESULTS FROM NEW THEME
We established a new theme, MORE FOR LESS, which focuses on companies with
strong consumer awareness and the ability to position products at the right
price. Within the new theme, we acquired Swedish apparel designer Hennes &
Mauritz AB. The company sells stylish but inexpensive clothing for children and
adults and has more than 800 stores in 14 countries. We also invested in
UK-based Signet Group PLC, the world's leading diamond retailer. By combining
competitive pricing with marketing and gem-stone education, it has gained the
trust of customers. Both holdings did well.
LOOKING AHEAD
In Europe, economic recovery is proceeding slowly. Exports are growing, but
consumer spending is low by US standards. The strength of the European economy
is closely tied to the strength of the economy in the United States,
particularly as it relates to the job market. A stall in the US economy would
put additional pressure on Europe's economies and stock markets. However, if the
US recovery continues and interest rates remain low, we believe that European
markets have the potential to improve as well.
Leon Pedersen is the lead manager of Columbia European Thematic
Equity Fund. The fund is managed by a 24-member portfolio team at
Nordea Investment Management North America, Inc. No single
individual at Nordea is responsible for making investment
decisions for the fund. Nordea is the subadvisor to the fund. The
fund's advisor is Columbia Management Advisors, Inc.
/s/ LEON PEDERSON
There are specific risks involved when investing in foreign stocks, such as
currency exchange rate fluctuations, economic change, instability of emerging
countries and political developments. A portfolio of stocks from a limited
geographic region, such as Europe, may be subject to additional risks and
volatility.
[SIDENOTE]
IF THE US RECOVERY CONTINUES AND INTEREST RATES REMAIN LOW, WE BELIEVE EUROPEAN
MARKETS HAVE THE POTENTIAL TO IMPROVE. IF THE US ECONOMY STALLS, IT WILL PUT
ADDITIONAL PRESSURE ON EUROPE'S ECONOMIES AND THEIR STOCK MARKETS.
9
<Page>
INVESTMENT PORTFOLIO
MARCH 31, 2004 (UNAUDITED) COLUMBIA GLOBAL THEMATIC EQUITY FUND
<Table>
<Caption>
SHARES VALUE ($)
- ----------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 95.4%
CONSUMER DISCRETIONARY - 15.8%
AUTOMOBILES - 1.8% Harley-Davidson, Inc. 110 5,867
Honda Motor Co., Ltd. 100 4,603
Automobiles Total 10,470
HOTELS, RESTAURANTS & LEISURE - 2.8% Accor SA 80 3,246
Carnival Corp. 295 13,248
Hotels, Restaurants & Leisure
Total 16,494
HOUSEHOLD DURABLES - 1.8% Furniture Brands International,
Inc. 150 4,830
Koninklijke (Royal) Philips
Electronics NV 200 5,791
Household Durables Total 10,621
MEDIA - 5.3% British Sky Broadcasting
Group PLC 1,130 14,136
Lamar Advertising Co. (a) 100 4,022
Omnicom Group, Inc. 100 8,025
WPP Group PLC 500 5,075
Media Total 31,258
SPECIALTY RETAIL - 4.1% Home Depot, Inc. 330 12,329
Kingfisher PLC 937 4,984
Signet Group PLC 2,000 4,056
Tractor Supply Co. (a) 75 2,904
Specialty Retail Total 24,273
--------------
CONSUMER DISCRETIONARY TOTAL 93,116
CONSUMER STAPLES - 6.0%
BEVERAGES - 3.2% Diageo PLC 300 3,922
PepsiCo, Inc. 280 15,078
Beverages Total 19,000
FOOD & STAPLES RETAILING - 1.3% Wal-Mart Stores, Inc. 130 7,760
Food & Staples Retailing
Total 7,760
FOOD PRODUCTS - 1.5% Nestle SA, Registered Shares 35 8,929
Food Products Total 8,929
--------------
CONSUMER STAPLES TOTAL 35,689
ENERGY - 5.7%
ENERGY EQUIPMENT & SERVICES - 2.8% Nabors Industries Ltd. (a) 150 6,863
Schlumberger Ltd. 150 9,578
Energy Equipment & Services
Total 16,441
OIL & GAS - 2.9% Suncor Energy, Inc. 300 8,223
Total SA 50 9,193
Oil & Gas Total 17,416
--------------
ENERGY TOTAL 33,857
FINANCIALS - 22.4%
CAPITAL MARKETS - 4.9% Merrill Lynch & Co., Inc. 170 10,125
UBS AG, Registered Shares 250 18,581
Capital Markets Total 28,706
</Table>
See notes to investment portfolio.
10
<Page>
<Table>
<Caption>
SHARES VALUE ($)
- ----------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
FINANCIALS - (CONTINUED)
COMMERCIAL BANKS - 5.3% Allied Irish Banks PLC 440 6,568
Banco Santander Central
Hispano SA 550 5,990
Charter One Financial, Inc. 150 5,304
Kookmin Bank, ADR (a) 100 4,046
Wells Fargo & Co. 170 9,634
Commercial Banks Total 31,542
DIVERSIFIED FINANCIAL SERVICES - 8.8% Citigroup, Inc. 650 33,605
Nomura Holdings, Inc. 1,000 18,171
Diversified Financial Services
Total 51,776
INSURANCE - 3.4% Alleanza Assicurazioni S.p.A. 600 6,800
Swiss Re, Registered Shares 50 3,448
Torchmark Corp. 180 9,682
Insurance Total 19,930
--------------
FINANCIALS TOTAL 131,954
HEALTH CARE - 12.4%
HEALTH CARE EQUIPMENT & SUPPLIES - 1.2% Medtronic, Inc. 150 7,162
Health Care Equipment &
Supplies Total 7,162
PHARMACEUTICALS - 11.2% Abbott Laboratories 300 12,330
Johnson & Johnson 235 11,919
Novartis AG, Registered Shares 250 10,624
Novo-Nordisk A/S, Class B 150 6,967
Pfizer, Inc. 700 24,535
Pharmaceuticals Total 66,375
--------------
HEALTH CARE TOTAL 73,537
INDUSTRIALS - 9.5%
AEROSPACE & DEFENSE - 1.1% Honeywell International, Inc. 200 6,770
Aerospace & Defense Total 6,770
AIRLINES - 0.6% Ryanair Holdings PLC, ADR (a) 100 3,419
Airlines Total 3,419
COMMERCIAL SERVICES & SUPPLIES - 1.5% Allied Waste Industries,
Inc. (a) 157 2,090
Securitas AB, B Shares 440 6,360
Commercial Services & Supplies
Total 8,450
INDUSTRIAL CONGLOMERATES - 3.9% General Electric Co. 750 22,890
Industrial Conglomerates Total 22,890
MACHINERY - 0.4% Tomra Systems ASA 500 2,537
Machinery Total 2,537
TRADING COMPANIES & DISTRIBUTORS - 2.0% Mitsubishi Corp. 1,000 11,795
Trading Companies &
Distributors Total 11,795
--------------
INDUSTRIALS TOTAL 55,861
INFORMATION TECHNOLOGY - 16.6%
COMMUNICATIONS EQUIPMENT - 2.2% Nokia Oyj 300 6,158
QUALCOMM, Inc. 100 6,642
Communications Equipment Total 12,800
</Table>
See notes to investment portfolio.
11
<Page>
<Table>
<Caption>
SHARES VALUE ($)
- ----------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
INFORMATION TECHNOLOGY - (CONTINUED)
COMPUTERS & PERIPHERALS - 1.2% International Business
Machines Corp. 75 6,888
Computers & Peripherals Total 6,888
ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.6% Hoya Corp. 100 9,733
Electronic Equipment &
Instruments Total 9,733
INTERNET SOFTWARE & SERVICES - 1.2% T-Online International AG (a) 200 2,387
Yahoo!, Inc. (a) 100 4,859
Internet Software & Services
Total 7,246
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT - 5.6% Applied Materials, Inc. (a) 500 10,690
ASML Holding NV (a) 156 2,862
Samsung Electronics Co., Ltd.,
GDR (b) 20 4,950
Samsung Electronics Co., Ltd.,
GDR, Registered Shares 60 14,850
Semiconductors & Semiconductor
Equipment Total 33,352
SOFTWARE - 4.8% BEA Systems, Inc. (a) 600 7,656
Dassault Systemes SA 100 4,159
Microsoft Corp. 650 16,231
Software Total 28,046
--------------
INFORMATION TECHNOLOGY TOTAL 98,065
MATERIALS - 2.5%
CHEMICALS - 2.2% Potash Corp. of Saskatchewan,
Inc. 110 9,141
Praxair, Inc. 100 3,712
Chemicals Total 12,853
METALS & MINING - 0.3% Johnson Matthey PLC 100 1,622
Metals & Mining Total 1,622
--------------
MATERIALS TOTAL 14,475
TELECOMMUNICATION SERVICES - 4.5%
DIVERSIFIED TELECOMMUNICATION
SERVICES - 2.4% Alltel Corp. 275 13,720
Telefonica SA 21 318
Diversified Telecommunication
Services Total 14,038
WIRELESS TELECOMMUNICATION SERVICES - 2.1% NTT DoCoMo, Inc. 3 6,616
Vodafone Group PLC 2,500 5,935
Wireless Telecommunication
Services Total 12,551
--------------
TELECOMMUNICATION SERVICES TOTAL 26,589
TOTAL COMMON STOCKS - 95.4%
(COST OF $498,054) (c) 563,143
OTHER ASSETS & LIABILITIES,
NET - 4.6% 27,145
NET ASSETS - 100.0% 590,288
</Table>
See notes to investment portfolio.
12
<Page>
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 March 31, 2004, the value of
this security amounted to $4,950, which represents 0.8% of net assets.
(c) Cost for both financial statement and federal income tax purposes is the
same.
<Table>
<Caption>
SUMMARY OF SECURITIES % OF TOTAL
BY COUNTRY VALUE ($) INVESTMENTS
---------------------------------------------------------------------------
United States 294,123 52.2%
Japan 50,918 9.0
Switzerland 41,582 7.4
United Kingdom 39,729 7.1
South Korea 23,846 4.2
Netherlands 18,231 3.2
Canada 17,364 3.1
France 16,598 3.0
Panama 13,248 2.4
Ireland 9,987 1.8
Denmark 6,967 1.2
Italy 6,800 1.2
Sweden 6,360 1.1
Spain 6,308 1.1
Finland 6,158 1.1
Norway 2,537 0.5
Germany 2,387 0.4
-------- -----
563,143 100.0%
======== =====
</Table>
<Table>
<Caption>
ACRONYM NAME
---------------------------------------------------------------------------
ADR American Depositary Receipt
GDR Global Depositary Receipt
</Table>
See notes to financial statements.
13
<Page>
INVESTMENT PORTFOLIO
MARCH 31, 2004 (UNAUDITED) COLUMBIA EUROPEAN THEMATIC EQUITY FUND
<Table>
<Caption>
SHARES VALUE ($)
- ----------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 102.1%
CONSUMER DISCRETIONARY - 20.0%
AUTOMOBILES - 2.0% Bayerische Motoren Werke
(BMW) AG 150 6,108
Automobiles Total 6,108
HOTELS, RESTAURANTS & LEISURE - 6.2% Accor SA 130 5,274
Carnival PLC 141 6,627
Compass Group PLC 1,090 7,205
Hotels, Restaurants & Leisure
Total 19,106
HOUSEHOLD DURABLES - 2.0% Koninklijke (Royal) Philips
Electronics NV 215 6,226
Household Durables Total 6,226
MEDIA - 5.3% British Sky Broadcasting
Group PLC 850 10,633
WPP Group PLC 590 5,988
Media Total 16,621
SPECIALTY RETAIL - 4.5% Hennes & Mauritz AB, B Shares 180 4,846
Kingfisher PLC 940 5,000
Signet Group PLC 2,019 4,095
Specialty Retail Total 13,941
--------------
CONSUMER DISCRETIONARY TOTAL 62,002
CONSUMER STAPLES - 9.4%
BEVERAGES - 3.3% Diageo PLC 770 10,066
Beverages Total 10,066
FOOD PRODUCTS - 6.1% Nestle SA, Registered Shares 59 15,052
Royal Numico NV (a) 134 3,958
Food Products Total 19,010
--------------
CONSUMER STAPLES TOTAL 29,076
ENERGY - 9.9%
ENERGY EQUIPMENT & SERVICES - 1.4% Saipem S.p.A. 450 4,485
Energy Equipment & Services
Total 4,485
OIL & GAS - 8.5% BP PLC 700 5,885
Shell Transport & Trading
Co. PLC 1,180 7,734
Total SA 69 12,686
Oil & Gas Total 26,305
--------------
ENERGY TOTAL 30,790
FINANCIALS - 26.2%
CAPITAL MARKETS - 5.3% UBS AG, Registered Shares 220 16,352
Capital Markets Total 16,352
COMMERCIAL BANKS - 13.6% Allied Irish Banks PLC 240 3,583
Banco Santander Central
Hispano SA 745 8,114
Bankinter SA 35 1,381
Dexia 290 5,025
ForeningsSparbanken AB 250 4,641
Lloyds TSB Group PLC 1,120 8,539
SanPaolo IMA S.p.A. 485 5,533
UniCredito Italiano S.p.A. 1,140 5,443
Commercial Banks Total 42,259
</Table>
See notes to investment portfolio.
14
<Page>
<Table>
<Caption>
SHARES VALUE ($)
- ----------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
FINANCIALS - (CONTINUED)
INSURANCE - 7.3% Alleanza Assicurazioni S.p.A. 460 5,214
AMB Generali Holding AG 30 2,281
Prudential PLC 950 7,838
Swiss Re, Registered Shares 107 7,378
Insurance Total 22,711
--------------
FINANCIALS TOTAL 81,322
HEALTH CARE - 10.4%
HEALTH CARE EQUIPMENT & SUPPLIES - 2.0% Essilor International SA 101 6,151
Health Care Equipment &
Supplies Total 6,151
PHARMACEUTICALS - 8.4% Aventis SA 140 10,776
Novartis AG, Registered Shares 271 11,516
Novo Nordisk A/S, Class B 80 3,716
Pharmaceuticals Total 26,008
--------------
HEALTH CARE TOTAL 32,159
INDUSTRIALS - 6.1%
AIR FREIGHT & LOGISTICS - 1.0% Exel PLC 250 3,245
Air Freight & Logistics Total 3,245
AIRLINES - 1.2% Ryanair Holdings PLC, ADR (a) 110 3,761
Airlines Total 3,761
COMMERCIAL SERVICES & SUPPLIES - 3.2% Adecco SA, Registered Shares 114 6,303
Securitas AB, B Shares 240 3,469
Commercial Services & Supplies
Total 9,772
MACHINERY - 0.7% Tomra Systems ASA 400 2,030
Machinery Total 2,030
--------------
INDUSTRIALS TOTAL 18,808
INFORMATION TECHNOLOGY - 9.2%
COMMUNICATIONS EQUIPMENT - 4.9% Nokia Oyj 500 10,263
Telefonaktiebolaget LM
Ericsson (a) 1,700 4,712
Communications Equipment Total 14,975
INTERNET SOFTWARE & SERVICES - 1.5% T-Online International AG (a) 386 4,608
Internet Software & Services
Total 4,608
SEMICONDUCTORS & SEMICONDUCTOR ASML Holding NV (a) 209 3,835
EQUIPMENT - 1.2% Semiconductors & Semiconductor
Equipment Total 3,835
SOFTWARE - 1.6% Dassault Systemes SA 120 4,991
Software Total 4,991
--------------
INFORMATION TECHNOLOGY TOTAL 28,409
MATERIALS - 1.4%
CONSTRUCTION MATERIALS - 0.6% Holcim Ltd., Registered Shares 37 1,980
Construction Materials Total 1,980
</Table>
See notes to investment portfolio.
15
<Page>
<Table>
<Caption>
SHARES VALUE ($)
- ----------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
MATERIALS - (CONTINUED)
METALS & MINING - 0.8% Johnson Matthey PLC 150 2,432
Metals & Mining Total 2,432
--------------
MATERIALS TOTAL 4,412
TELECOMMUNICATION SERVICES - 9.5%
DIVERSIFIED TELECOMMUNICATION
SERVICES - 5.4% Telecom Italia S.p.A. (a) 2,865 8,990
Telefonica SA 505 7,650
Diversified Telecommunication
Services Total 16,640
WIRELESS TELECOMMUNICATION SERVICES - 4.1% Vodafone Group PLC 5,390 12,795
Wireless Telecommunication
Services Total 12,795
--------------
TELECOMMUNICATION SERVICES
TOTAL 29,435
--------------
TOTAL COMMON STOCKS
(COST OF $262,693) 316,413
PREFERRED STOCK - 1.5%
HEALTH CARE - 1.5%
HEALTH CARE PROVIDERS & SERVICES - 1.5% Fresenius AG (Cost of $1,546) 65 4,558
TOTAL INVESTMENTS - 103.6%
(COST OF $264,239) (b) 320,971
OTHER ASSETS & LIABILITIES,
NET - (3.6)% (11,290)
NET ASSETS - 100.0% 309,681
</Table>
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing.
(b) Cost for both financial statement and federal income tax purposes is the
same.
<Table>
<Caption>
SUMMARY OF SECURITIES % OF TOTAL
BY COUNTRY VALUE ($) INVESTMENTS
---------------------------------------------------------------------------
United Kingdom 98,083 30.6%
Switzerland 58,581 18.2
France 39,879 12.4
Italy 29,665 9.2
Sweden 17,667 5.5
Germany 17,556 5.5
Spain 17,145 5.3
Netherlands 14,018 4.4
Finland 10,263 3.2
Ireland 7,343 2.3
Belgium 5,025 1.6
Denmark 3,716 1.2
Norway 2,030 0.6
------- -----
320,971 100.0%
======= =====
</Table>
<Table>
<Caption>
ACRONYM NAME
---------------------------------------------------------------------------
ADR American Depositary Receipt
</Table>
See notes to financial statements.
16
<Page>
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 2004 (UNAUDITED) COLUMBIA THEMATIC EQUITY FUNDS
<Table>
<Caption>
COLUMBIA COLUMBIA
GLOBAL EUROPEAN
THEMATIC THEMATIC
EQUITY EQUITY
FUND ($) FUND ($)
- -------------------------------------------------------------------------------------------------------------------------------
ASSETS Investments, at cost 498,054 264,239
---------------------
Investments, at value 563,143 320,971
Cash 14,285 --
Foreign currency (cost of $36,046 and $4,422, respectively) 36,743 4,481
Receivable for:
Dividends 1,069 1,571
Foreign tax reclaims 802 952
Expense reimbursement due from Investment Advisor 17,672 18,114
Deferred Trustees' compensation plan 1,370 1,367
Other assets 3,501 1,028
---------------------
Total Assets 638,585 348,484
LIABILITIES Payable to custodian bank -- 9,910
Payable for:
Investments purchased 23,028 --
Investment advisory fee 445 1,523
Administration fee 28 243
Transfer agent fee 506 394
Pricing and bookkeeping fees 1,322 1,299
Trustees' fees 34 47
Audit fee 15,396 15,396
Custody fee 3,657 6,050
Legal fee 2,511 2,574
Deferred Trustees' fees 1,370 1,367
---------------------
Total Liabilities 48,297 38,803
NET ASSETS 590,288 309,681
COMPOSITION OF NET ASSETS Paid-in capital 1,184,605 964,613
Accumulated net investment loss (1,764) (959)
Accumulated net realized loss (658,439) (710,926)
Net unrealized appreciation on:
Investments 65,089 56,732
Foreign currency translations 797 221
NET ASSETS 590,288 309,681
CLASS Z Net assets 590,288 309,681
Shares outstanding 73,449 38,757
Net asset value and offering price per share (a) 8.04 7.99
</Table>
(a) Redemption price per share is equal to net asset value less any applicable
redemption fees.
See notes to financial statements.
17
<Page>
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 2004 (UNAUDITED)
COLUMBIA THEMATIC EQUITY FUNDS
<Table>
<Caption>
COLUMBIA COLUMBIA
GLOBAL EUROPEAN
THEMATIC THEMATIC
EQUITY EQUITY
FUND ($) FUND ($)
- -------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME Dividends (net of foreign taxes
withheld of $164 and $296, respectively) 3,852 2,357
EXPENSES Investment advisory fee 2,483 1,338
Administration fee 194 102
Pricing and bookkeeping fees 6,220 6,093
Transfer agent fee 512 224
Trustees' fees 3,097 3,108
Custody fee 6,144 10,422
Audit fee 16,056 16,056
Registration fee 19,107 19,145
Other expenses 4,895 3,968
Non-recurring costs (See Note 9) 4 2
Costs assumed by Investment Advisor (See Note 9) (4) (2)
---------------------
Total Expenses 58,708 60,456
Fees and expenses waived or reimbursed by
Investment Advisor (54,018) (57,920)
Custody earnings credit (18) (19)
---------------------
Net Expenses 4,672 2,517
---------------------
Net Investment Loss (820) (160)
NET REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain on:
ON INVESTMENTS AND FOREIGN CURRENCY Investments 29,145 10,525
Foreign currency transactions 340 564
---------------------
Net realized gain 29,485 11,089
Net change in unrealized
appreciation/depreciation on:
Investments 59,094 36,332
Foreign currency translations 614 (132)
---------------------
Net change in unrealized
appreciation/depreciation 59,708 36,200
---------------------
Net Gain 89,193 47,289
---------------------
Net Increase in Net Assets
from Operations 88,373 47,129
</Table>
See notes to financial statements.
18
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
COLUMBIA THEMATIC EQUITY FUNDS
<Table>
<Caption>
COLUMBIA GLOBAL THEMATIC EQUITY FUND
--------------------------------------------
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED YEAR ENDED
INCREASE (DECREASE) MARCH 31, SEPTEMBER 30, OCTOBER 31,
IN NET ASSETS: 2004 ($) 2003(a)(b) ($) 2002(c) ($)
- -----------------------------------------------------------------------------------------------------------------------------
OPERATIONS Net investment income (loss) (820) (41) (3,888)
Net realized gain (loss) on
investments and foreign
currency transactions 29,485 (365,620) (235,843)
Net change in unrealized
appreciation/depreciation on
investments and foreign
currency translations 59,708 370,489 (51,477)
--------------------------------------------
Net Increase (Decrease)
from Operations 88,373 4,828 (291,208)
DISTRIBUTIONS DECLARED TO
SHAREHOLDERS Class Z:
From net investment income (6,651) -- (839)
SHARE TRANSACTIONS Class Z:
Subscriptions 18,676 12,603 499,082
Distributions reinvested 6,623 -- 839
Redemptions (65,342) (717,389) (553,111)
--------------------------------------------
Net Increase (Decrease) from
Share Transactions (40,043) (704,786) (53,190)
--------------------------------------------
Redemption fees 13 3 --
--------------------------------------------
Total Increase (Decrease)
in Net Assets 41,692 (699,955) (345,237)
NET ASSETS Beginning of period 548,596 1,248,551 1,593,788
End of period 590,288 548,596 1,248,551
Accumulated net investment
income (loss), at end of period (1,764) 5,707 (540)
CHANGES IN SHARES Class Z:
Subscriptions 2,349 1,965 67,200
Issued for distributions reinvested 879 -- 104
Redemptions (8,351) (119,485) (76,155)
--------------------------------------------
Net Increase (Decrease) (5,123) (117,520) (8,851)
<Caption>
COLUMBIA EUROPEAN THEMATIC EQUITY FUND
--------------------------------------------
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED YEAR ENDED
INCREASE (DECREASE) MARCH 31, SEPTEMBER 30, OCTOBER 31,
IN NET ASSETS: 2004 ($) 2003(a)(b) ($) 2002(c) ($)
- -----------------------------------------------------------------------------------------------------------------------------
OPERATIONS Net investment income (loss) (160) 2,538 857
Net realized gain (loss) on
investments and foreign
currency transactions 11,089 (134,814) (451,975)
Net change in unrealized
appreciation/depreciation on
investments and foreign
currency translations 36,200 110,855 198,885
---------------------------------------------
Net Increase (Decrease)
from Operations 47,129 (21,421) (252,233)
DISTRIBUTIONS DECLARED TO
SHAREHOLDERS Class Z:
From net investment income (6,287) -- (20,508)
SHARE TRANSACTIONS
Class Z:
Subscriptions 25,579 179,094 990,208
Distributions reinvested 6,287 -- 20,508
Redemptions (26,157) (828,486) (979,194)
---------------------------------------------
Net Increase (Decrease) from
Share Transactions 5,709 (649,392) 31,522
---------------------------------------------
Redemption fees -- 241 --
---------------------------------------------
Total Increase (Decrease)
in Net Assets 46,551 (670,572) (241,219)
NET ASSETS
Beginning of period 263,130 933,702 1,174,921
End of period 309,681 263,130 933,702
Accumulated net investment
income (loss), at end of period (959) 5,488 (538)
CHANGES IN SHARES
Class Z:
Subscriptions 3,186 29,213 155,828
Issued for distributions reinvested 807 -- 2,658
Redemptions (3,201) (149,415) (157,802)
---------------------------------------------
Net Increase (Decrease) 792 (120,202) 684
</Table>
(a) The Fund changed its fiscal year end from October 31 to September 30.
(b) Approximately $670,000 and $655,000 of redemptions in Columbia Global
Thematic Equity Fund and Columbia European Thematic Equity Fund,
respectively, were by an affiliate of the Funds' investment advisor and
were due to certain regulatory requirements.
(c) On July 29, 2002, the Funds' outstanding shares were redesignated as Class
Z shares.
See notes to financial statements.
19
<Page>
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2004 (UNAUDITED) COLUMBIA THEMATIC EQUITY FUNDS
NOTE 1. ORGANIZATION
Columbia Global Thematic Equity Fund and Columbia European Thematic Equity Fund
(collectively, the "Funds") are diversified portfolios of Columbia Funds Trust
XI (the "Trust"). The Trust is a Massachusetts business trust registered under
the Investment Company Act of 1940, as amended, as an open-end management
investment company.
INVESTMENT GOALS
Each Fund seeks long-term growth of capital.
FUND SHARES
The Funds may issue an unlimited number of shares. On July 29, 2002, the
outstanding shares of the Funds were redesignated Class Z shares. 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.
On October 13, 2003, the Liberty Global Thematic Equity Fund and Liberty
European Thematic Equity Fund were renamed Columbia Global Thematic Equity Fund
and Columbia European Thematic Equity Fund, respectively. Also on this date, the
Liberty-Stein Roe Funds Investment Trust was renamed Columbia Funds Trust XI.
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.
Short-term debt obligations maturing within 60 days are valued at amortized
cost, which approximates market value.
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 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 reliable, then these foreign securities will be valued at
their fair value using procedures approved by the Board of Trustees.
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 Trustees.
SECURITY TRANSACTIONS
Security transactions are accounted for on the trade date. Cost is determined
and gains (losses) are based upon the specific identification method for both
financial statement and federal income tax purposes.
INCOME RECOGNITION
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.
20
<Page>
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.
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.
DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders are recorded on ex-date. Net realized capital
gains, if any, are distributed at least annually.
NOTE 3. FEDERAL TAX INFORMATION
The tax character of distributions paid during the period ended September 30,
2003 and year ended October 31, 2002 was as follows:
<Table>
<Caption>
ORDINARY INCOME
- --------------------------------------------------------------------------------
PERIOD ENDED YEAR ENDED
SEPTEMBER 30, 2003 OCTOBER 31, 2002
- --------------------------------------------------------------------------------
Columbia Global Thematic
Equity Fund $ -- $ 839
Columbia European Thematic
Equity Fund -- 20,508
</Table>
Unrealized appreciation and depreciation at March 31, 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:
<Table>
<Caption>
NET
UNREALIZED UNREALIZED UNREALIZED
APPRECIATION DEPRECIATION APPRECIATION
- --------------------------------------------------------------------------------------
Columbia Global Thematic
Equity Fund $ 86,073 $ (20,984) $ 65,089
Columbia European Thematic
Equity Fund 60,743 (4,011) 56,732
</Table>
The following capital loss carryforwards, determined as of September 30, 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:
<Table>
<Caption>
COLUMBIA COLUMBIA
GLOBAL EUROPEAN
YEAR OF THEMATIC THEMATIC
EXPIRATION EQUITY FUND EQUITY FUND
- -------------------------------------------
2009 $ 79,387 $ 92,707
2010 235,325 205,264
2011 342,924 408,046
$ 657,636 $ 706,017
</Table>
Expired capital loss carryforwards, if any, are recorded as a reduction of
paid-in capital.
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"). Columbia
receives a monthly investment advisory fee based on average daily net assets of
each Fund as follows:
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL FEE RATE
- ---------------------------------------------
First $1 billion 0.85%
Next $500 million 0.80%
Over $1.5 billion 0.75%
</Table>
21
<Page>
Prior to November 1, 2003, Columbia was entitled to receive a monthly investment
advisory fee at the annual rate of 0.85% of each Fund's average daily net
assets.
SUB-ADVISORY FEE
Nordea Investment Management North America, Inc. ("Nordea") has been retained by
Columbia as sub-advisor to manage the day-to-day investment operations of the
Funds. Columbia, out of the advisory fee it receives, pays Nordea a monthly
sub-advisory fee equal to 0.60% annually of the average daily net assets of each
Fund.
ADMINISTRATION FEE
Columbia provides accounting and other services to the Funds for a monthly
administration fee at the annual rate of 0.05% of each Fund's average daily net
assets.
Prior to November 1, 2003, Columbia was entitled to receive a monthly
administration fee at the annual rate of 0.15% of each Fund's average daily net
assets.
For the six months ended March 31, 2004, the annualized effective administration
fee rates for the Columbia Global Thematic Equity Fund and Columbia European
Thematic Equity Fund were 0.07% and 0.07%, respectively.
PRICING AND BOOKKEEPING FEES
Columbia is responsible for providing pricing and bookkeeping services to the
Funds under a pricing and bookkeeping agreement. Under a separate agreement (the
"Outsourcing Agreement"), Columbia has delegated those functions to State Street
Corporation ("State Street"). Columbia pays the total fees collected to State
Street under the Outsourcing Agreement.
Under its pricing and bookkeeping agreement with the Funds, Columbia receives
from each Fund an annual flat fee of $10,000 paid monthly, and in any month that
a Fund's average daily net assets exceed $50 million, an additional monthly fee.
The additional fee rate is calculated by taking into account the fees payable to
State Street under the Outsourcing Agreement. This rate is applied to the
average daily net assets of the Fund for that month. Each Fund also pays
additional fees for pricing services. For the six months ended March 31, 2004,
the annualized effective pricing and bookkeeping fee rates for the Columbia
Global Thematic Equity Fund and Columbia European Thematic Equity Fund were
2.128% and 3.867%, respectively.
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, paid monthly, at the annual rate of $28.00 per open account. The
Transfer Agent also receives reimbursement for certain out-of-pocket expenses.
Prior to November 1, 2003, the Transfer Agent was entitled to receive a monthly
transfer agent fee at the annual rate of 0.06% of each Fund's average daily net
assets plus flat-rate charges based on the number of shareholder accounts and
transactions. The Transfer Agent was also entitled to receive reimbursement for
certain out-of-pocket expenses.
For the six months ended March 31, 2004, the annualized effective transfer agent
fee rates, inclusive of out-of-pocket fees, for the Columbia Global Thematic
Equity Fund and Columbia European Thematic Equity Fund were 0.18% and 0.14%,
respectively.
EXPENSE LIMITS AND FEE REIMBURSEMENTS
Columbia has voluntarily agreed to waive fees and reimburse certain expenses to
the extent that total expenses (exclusive of brokerage commissions, interest,
taxes and extraordinary expenses, if any) exceed 1.60% annually of each Fund's
average daily net assets. Columbia, at its discretion, may revise or discontinue
this arrangement any time.
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 TRUSTEES
The Funds pay no compensation to their officers, all of whom are employees of
Columbia or its affiliates.
22
<Page>
The Funds' Trustees may participate in a deferred compensation plan which may be
terminated at any time. Obligations of the plan will be paid solely out of the
Funds' assets.
NOTE 5. PORTFOLIO INFORMATION
For the six months ended March 31, 2004, the cost of purchases and proceeds from
sales of securities, excluding short-term obligations, were as follows:
<Table>
<Caption>
PURCHASES SALES
- -----------------------------------------------------------------------------
Columbia Global Thematic
Equity Fund $ 112,460 $ 190,966
Columbia European Thematic
Equity Fund 96,763 82,036
</Table>
NOTE 6. LINE OF CREDIT
The Funds and other affiliated funds participate in a $350,000,000 credit
facility, which is used for temporary or emergency purposes to facilitate
portfolio liquidity. Interest is charged to the Funds based on their borrowings.
In addition, the Funds have agreed to pay commitment fees on their pro-rata
portions of the unutilized line of credit. The commitment fee is included in
"Other expenses" on the Statement of Operations. For the six months ended March
31, 2004, the Funds did not borrow under this arrangement.
NOTE 7. REDEMPTION FEES
Effective February 10, 2003, the Funds 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 Funds, are accounted for as an
addition to paid-in capital. For the six months ended March 31, 2004, redemption
fees for the Class Z shares of the Columbia Global Thematic Equity Fund amounted
to $13. For the six months ended March 31, 2004, the Columbia European Thematic
Equity Fund did not retain any redemption fees.
NOTE 8. SHARES OF BENEFICIAL INTEREST
As of March 31, 2004, the Funds had shareholders that held greater than 5% of
the shares outstanding. Subscription and redemption activity of these
shareholders may have a material effect on the Funds. The numbers of
shareholders greater than 5% and the aggregate percentage of shares outstanding
held were as follows:
<Table>
<Caption>
NUMBER
OF PERCENT OF
SHAREHOLDERS SHARES HELD
- --------------------------------------------------------------------------------
Columbia Global Thematic
Equity Fund 1 11%
Columbia European Thematic
Equity Fund 1 7%
</Table>
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.
Investments in emerging market countries are subject to additional risk. The
risk of foreign investments is typically increased in less developed countries.
These countries are also more likely to experience high levels of inflation,
deflation or currency devaluation which could hurt their economies and
securities markets.
Because the Columbia European Thematic Equity Fund's investments are
concentrated in Europe, events within the region will have a greater effect on
the Fund than if the Fund were more geographically diversified. In addition,
events in any one country within the region may impact the other countries or
the region as a whole. Markets in the region can experience significant
volatility due to social, regulatory and political uncertainties.
INDUSTRY FOCUS
The Funds may focus their investments in certain industries, subjecting them to
greater risk than a fund that is more diversified.
23
<Page>
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
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.
For the six months ended March 31, 2004, Columbia has assumed $4 and $2 of
legal, consulting services and Trustees' fees incurred by the Columbia Global
Thematic Equity Fund and the Columbia European Thematic Equity Fund,
respectively, in connection with these matters.
NOTE 10. 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.
NOTE 11. COMPARABILITY OF FINANCIAL STATEMENTS
The fiscal year end of the Funds was changed from October 31 to September 30.
Accordingly, the Funds' 2004 fiscal year end will be September 30, 2004.
24
<Page>
FINANCIAL HIGHLIGHTS
COLUMBIA GLOBAL THEMATIC EQUITY FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<Table>
<Caption>
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED
MARCH 31, SEPTEMBER 30, OCTOBER 31, OCTOBER 31,
CLASS Z SHARES 2004(a) 2003(b) 2002(c) 2001(d)
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 6.98 $ 6.37 $ 7.78 $ 10.13
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (e) (0.01) --(f) (0.02) (0.03)
Net realized and unrealized gain (loss)
on investments and foreign currency 1.16 0.61 (1.39) (2.32)
------------- ------------- -------------- --------------
Total from Investment Operations 1.15 0.61 (1.41) (2.35)
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.09) -- --(f) --
REDEMPTION FEES:
Redemption fees added to paid-in capital --(e)(f) --(e)(f) N/A N/A
NET ASSET VALUE, END OF PERIOD $ 8.04 $ 6.98 $ 6.37 $ 7.78
Total return (g)(h) 16.52%(i) 9.58%(i) (18.08)% (23.20)%(i)
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 1.60%(k) 1.60%(k) 1.60% 1.60%(k)
Net investment loss (j) (0.28)%(k) (0.01)%(k) (0.25)% (0.40)%(k)
Waiver/reimbursement 18.48%(k) 10.25%(k) 5.07% 5.54%(k)
Portfolio turnover rate 20%(i) 41%(i) 41% 15%(i)
Net assets, end of period (000's) $ 590 $ 549 $ 1,249 $ 1,594
</Table>
(a) On October 13, 2003, the Liberty Global Thematic Equity Fund was renamed
Columbia Global Thematic Equity Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On July 29, 2002, the Stein Roe Global Thematic Equity Fund was redesignated
Liberty Global Thematic Equity Fund, Class Z shares.
(d) The Fund commenced investment operations on January 2, 2001. Per share data,
total return and portfolio turnover rate reflect activity from that date.
(e) Per share data was calculated using average shares outstanding during the
period.
(f) Rounds to less than $0.01 per share.
(g) Had the Investment Advisor not waived or reimbursed a portion of expenses,
total return would have been reduced.
(h) Total return at net asset value assuming all distributions reinvested.
(i) Not annualized.
(j) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%, except for
the six months ended March 31, 2004 and the period ended September 30, 2003
which each had an impact of 0.01%.
(k) Annualized.
25
<Page>
COLUMBIA EUROPEAN THEMATIC EQUITY FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<Table>
<Caption>
(UNAUDITED)
SIX MONTHS PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, OCTOBER 31, OCTOBER 31,
CLASS Z SHARES 2004(a) 2003(b) 2002(c) 2001(d)
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 6.93 $ 5.90 $ 7.46 $ 10.18
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (e) --(f) 0.03 0.01 0.05
Net realized and unrealized gain (loss)
on investments and foreign currency 1.22 1.00 (1.44) (2.77)
------------- ------------- -------------- --------------
Total from Investment Operations 1.22 1.03 (1.43) (2.72)
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.16) -- (0.13) --
REDEMPTION FEES:
Redemption fees added to paid-in capital -- --(e)(f) N/A N/A
NET ASSET VALUE, END OF PERIOD $ 7.99 $ 6.93 $ 5.90 $ 7.46
Total return (g)(h) 17.67%(i) 17.46%(i) (19.58)% (26.72)%(i)
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 1.60%(k) 1.60%(k) 1.60% 1.60%(k)
Net investment income (loss) (j) (0.10)%(k) 0.52%(k) 0.07% 0.71%(k)
Waiver/reimbursement 36.76%(k) 19.60%(k) 6.08% 5.57%(k)
Portfolio turnover rate 27%(i) 67%(i) 71% 33%(i)
Net assets, end of period (000's) $ 310 $ 263 $ 934 $ 1,175
</Table>
(a) On October 13, 2003, the Liberty European Thematic Equity Fund was renamed
Columbia European Thematic Equity Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On July 29, 2002, the Stein Roe European Thematic Equity Fund was
redesignated Liberty European Thematic Equity Fund, Class Z shares.
(d) The Fund commenced investment operations on January 2, 2001. Per share data,
total return and portfolio turnover rate reflect activity from that date.
(e) Per share data was calculated using average shares outstanding during the
period.
(f) Rounds to less than $0.01 per share.
(g) Had the Investment Advisor not waived or reimbursed a portion of expenses,
total return would have been reduced.
(h) Total return at net asset value assuming all distributions reinvested.
(i) Not annualized.
(j) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%, except for
the six months ended March 31, 2004 and the period ended September 30, 2003
which each had an impact of 0.01%.
(k) Annualized.
26
<Page>
IMPORTANT INFORMATION ABOUT THIS REPORT
COLUMBIA THEMATIC EQUITY 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 02110
The fund mails one shareholder report to each shareholder address. If you would
like more than one report, please call shareholder services at 800-345-6611 and
additional reports will be sent to you.
This report has been prepared for shareholders of Columbia Thematic Equity
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 fund and with the most
recent copy of the Columbia Funds Performance Update.
A description of the policies and procedures that the fund uses to determine how
to vote proxies relating to its portfolio securities is available (i) without
charge, upon request, by calling 800-345-6611 and (ii) on the Securities and
Exchange Commission's website at http://www.sec.gov.
27
<Page>
COLUMBIA FUNDS
COLUMBIA THEMATIC EQUITY FUNDS
LARGE GROWTH Columbia Common Stock
Columbia Growth
Columbia Growth Stock
Columbia Large Cap Growth
Columbia Tax-Managed Growth
Columbia Tax-Managed Growth II
Columbia Young Investor
LARGE VALUE Columbia Disciplined Value
Columbia Growth & Income
Columbia Large Cap Core
Columbia Tax-Managed Value
MIDCAP GROWTH Columbia Acorn Select
Columbia Mid Cap Growth
Columbia Tax-Managed Aggressive Growth
MIDCAP VALUE Columbia Dividend Income
Columbia Mid Cap
Columbia Strategic Investor
SMALL GROWTH Columbia Acorn
Columbia Acorn USA
Columbia Small Company Equity
SMALL VALUE Columbia Small Cap
Columbia Small-Cap Value
BALANCED Columbia Asset Allocation
Columbia Balanced
Columbia Liberty Fund
SPECIALTY Columbia Real Estate Equity
Columbia Technology
Columbia Utilities
TAXABLE FIXED-INCOME Columbia Contrarian Income
Columbia Corporate Bond
Columbia Federal Securities
Columbia Fixed Income Securities
Columbia High Yield
Columbia High Yield Opportunities
Columbia Income
Columbia Intermediate Bond
Columbia Intermediate Government Income
Columbia Quality Plus Bond
Columbia Short Term Bond
Columbia Strategic Income
FLOATING RATE Columbia Floating Rate
Columbia Floating Rate Advantage
TAX EXEMPT Columbia High Yield Municipal
Columbia Intermediate Tax-Exempt Bond
Columbia Managed Municipals
Columbia National Municipal Bond
Columbia Tax-Exempt
Columbia Tax-Exempt Insured
28
<Page>
SINGLE STATE TAX EXEMPT Columbia California Tax-Exempt
Columbia Connecticut Intermediate Municipal Bond
Columbia Connecticut Tax-Exempt
Columbia Florida Intermediate Municipal Bond
Columbia Massachusetts Intermediate Municipal Bond
Columbia Massachusetts Tax-Exempt
Columbia New Jersey Intermediate Municipal Bond
Columbia New York Intermediate Municipal Bond
Columbia New York Tax-Exempt
Columbia Oregon Municipal Bond
Columbia Pennsylvania Intermediate Municipal Bond
Columbia Rhode Island Intermediate Municipal Bond
MONEY MARKET Columbia Money Market
Columbia Municipal Money Market
INTERNATIONAL/GLOBAL Columbia Acorn International
Columbia Acorn International Select
Columbia Europe
Columbia Global Equity
Columbia International Stock
Columbia Newport Asia Pacific
Columbia Newport Greater China
Columbia Newport Tiger
INDEX Columbia Large Company Index
Columbia Small Company Index
Columbia U.S. Treasury Index
PLEASE CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES OF A
MUTUAL FUND CAREFULLY BEFORE INVESTING. CONTACT US AT 800-345-6611 FOR A
PROSPECTUS WHICH CONTAINS THIS AND OTHER IMPORTANT INFORMATION ABOUT THE FUND.
READ IT CAREFULLY BEFORE YOU INVEST.
For complete product information on any Columbia fund, visit our website at
www.columbiafunds.com.
Columbia Management Group and Columbia Management refer collectively to the
various investment advisory subsidiaries of Columbia Management Group, including
Columbia Management Advisors, Inc., the registered investment advisor, and
Columbia Funds Distributor, Inc.
29
<Page>
[GRAPHIC]
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 THEMATIC EQUITY FUNDS SEMIANNUAL REPORT, MARCH 31, 2004
PRSRT STD
U.S. POSTAGE
PAID
HOLLISTON, MA
PERMIT NO. 20
[COLUMBIAFUNDS(R) LOGO]
A MEMBER OF COLUMBIA MANAGEMENT GROUP
(C) 2004 COLUMBIA FUNDS DISTRIBUTOR, INC.
ONE FINANCIAL CENTER, BOSTON, MA 02111-2621
800.345.6611 www.columbiafunds.com
LTF-03/631R-0304 (05/04) 04/1086
COLUMBIA
EQUITY FUNDS
Semiannual Report
March 31, 2004
[Photograph of 2 ladies with a pen in hand]
COLUMBIA FUNDS LOGO
A MEMBER OF COLUMBIA MANAGEMENT GROUP
TABLE OF CONTENTS
Economic Update ............................... 1
Columbia Asset Allocation Fund ................ 2
Columbia Large Cap Growth Fund ................ 5
Columbia Disciplined Value Fund ............... 8
Columbia International Equity Fund ............ 11
Columbia Large Cap Core Fund .................. 14
Columbia Small Cap Fund ....................... 17
Columbia Small Company Equity Fund ............ 20
Financial Statements .......................... 23
Important Information
About This Report ............................. 128
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 Equity 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
intends to deliver additional research and management capabilities, as well as
new products to you.
There are no immediate changes planned for fund names 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 requires 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 want you to know that all of the members of your fund's Board of Trustees are
independent of the fund's advisor and its affiliates. In addition, the board has
been energetic over the past year in strengthening its capacity to oversee the
Columbia funds. Recently, the Board of Trustees:
o APPOINTED A CHIEF COMPLIANCE OFFICER OF THE COLUMBIA FUNDS, WHO REPORTS
DIRECTLY TO EACH FUND'S AUDIT COMMITTEE. TRUSTEES WERE ALSO ASSIGNED TO FOUR
SEPARATE INVESTMENT OVERSIGHT COMMITTEES, EACH DEDICATED TO MONITORING
PERFORMANCE OF INDIVIDUAL FUNDS.
o VOTED TO DOUBLE THE REQUIRED INVESTMENT BY EACH TRUSTEE IN THE COLUMBIA
FUNDS -- TO FURTHER ALIGN THE INTERESTS OF THE TRUSTEES WITH THOSE OF OUR
FUND SHAREHOLDERS. AT THE SAME TIME, NEW POLICIES WERE INSTITUTED REQUIRING
ALL INVESTMENT PERSONNEL AND TRUSTEES TO HOLD THEIR COLUMBIA FUND SHARES FOR
A MINIMUM OF ONE YEAR (UNLESS EXTRAORDINARY CIRCUMSTANCES WARRANT AN
EXCEPTION TO BE GRANTED BY SENIOR EXECUTIVES OF THE ADVISOR FOR INVESTMENT
PERSONNEL AND BY A DESIGNATED COMMITTEE FOR THE BOARD).
Both your fund's trustees 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 during the period and the performance of your Columbia fund. These
discussions are followed by financial statements for your fund. We hope that you
will take time to read this report and discuss it with your financial advisor if
you have any questions.
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
Thomas C. Theobald
Chairman, Board of Trustees
/s/ J. Kevin Connaughton
J. Kevin Connaughton
President, Columbia Funds
J. Kevin Connaughton was named president of Columbia Funds on February 27, 2004.
SUMMARY
FOR THE SIX-MONTH PERIOD THAT ENDED MARCH 31, 2004
o STOCK MARKETS AROUND THE WORLD BENEFITED FROM A PICK-UP IN ECONOMIC GROWTH
AND AN INCREASE IN CORPORATE PROFITS. BOTH THE S&P 500 INDEX AND THE MSCI
EAFE INDEX POSTED DOUBLE-DIGIT RETURNS THIS PERIOD.
S&P INDEX MSCI INDEX
artwork: 2 arrows up
14.08% 22.16%
o PERFORMANCE IN THE FIXED-INCOME UNIVERSE WAS LED BY HIGH-YIELD BONDS. AS
MEASURED BY THE MERRILL LYNCH US HIGH YIELD, CASH PAY INDEX, THIS SECTOR
POSTED A RETURN MORE THAN FIVE PERCENTAGE POINTS HIGHER THAN THE RETURN FOR
INVESTMENT-GRADE BONDS, AS MEASURED BY THE LEHMAN BROTHERS AGGREGATE BOND
INDEX.
MERRILL LYNCH INDEX LEHMAN INDEX
artwork: 2 arrows up
8.21% 2.98%
The S&P 500 Index is an unmanaged index that tracks the performance of 500
widely held, large capitalization US stocks.
The MSCI EAFE Index is an unmanaged, market-weighted index composed of companies
representative of the market structure of 21 developed market countries in
Europe, Australasia and the Far East.
The Merrill Lynch US High Yield, Cash Pay Index is an unmanaged index that
tracks the performance of non-investment-grade corporate bonds.
The Lehman Brothers Aggregate Bond Index is a market value-weighted index that
tracks fixed-rate, publicly placed, dollar-denominated and non-convertible
investment grade debt issues.
ECONOMIC UPDATE_________________________________________________________________
Columbia Equity Funds
The US economy moved ahead during the six-month reporting period that began
October 1, 2003 and ended March 31, 2004. A burst of strength in the third
quarter of 2003, for which annualized GDP was reported at 8.2%, was followed by
fourth quarter growth of 4.1%. That pace was still comfortably above the
economy's long-term average growth rate of 3.0%. GDP growth for first quarter of
2004 was 4.2%.
Although job growth was slow to catch on, the economy showed signs of
improvement on all fronts. Consumer spending rose as a sizeable package of tax
cuts, implemented in 2003, gave disposable income a boost. Low interest rates
spurred a new round of mortgage refinancing late in the period. Consumer
confidence slipped late in the period as the outlook for the labor market
remained clouded despite a significant pick-up in new jobs in March.
Nevertheless, housing and retail sales showed steady gains throughout the
period.
After two years of holding back, the business sector began to show signs
of improvement late in 2003. Business spending on technology-related items rose
as corporate profits improved. Spending on capital equipment also picked up.
US STOCKS HEADED HIGHER
The US stock market snapped a three-year losing streak in 2003, but its rate of
return slowed early in 2004 in response to a mixed job outlook and renewed fears
about terrorism. The S&P 500 Index returned 14.08% for this six-month period.
Small company stocks were even stronger. The Russell 2000 Index returned 21.69%
for the period.
INTERNATIONAL STOCK MARKETS REPORTED STRONG RETURNS
A modest rebound in economic growth and a declining US dollar helped
international stock markets post strong returns. 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 22.16% for
the period. European stock markets responded to improving economic data and
relatively low interest rates. Japan's economy continued to report steady but
modest growth, and its improvement was reflected in strong stock market returns.
The stock markets of Korea, Malaysia and Taiwan scored double-digit gains during
the period as did those of Colombia and Mexico.
BONDS DELIVER RESPECTABLE GAINS
A growing economy continued to boost investor enthusiasm for high-yield bonds,
which led the fixed-income markets during the period. The six-month return for
the Merrill Lynch US High Yield, Cash Pay Index was 8.21%. However, high-yield
bonds slipped in the second half of this reporting period. US Treasury bonds
gained ground and other segments of the bond market also delivered respectable
gains as interest rates declined. The Lehman Brothers Aggregate Bond Index, a
broad measure of investment-grade bond performance, returned 2.98%. However,
money market fund yields remained below 1%.
1
PERFORMANCE OF A $10,000 INVESTMENT
04/01/94 - 03/31/04 ($)
SALES CHARGE WITHOUT WITH
------------ ------- ------
Class A 22,140 20,866
Class B 21,305 21,305
Class C 21,311 21,311
Class G 20,812 20,812
Class T 22,048 20,780
Class Z 22,511 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 Asset Allocation Fund
VALUE OF A $10,000 INVESTMENT 04/01/94 - 03/31/04
[MOUNTAIN CHART]
CLASS A CLASS A LEHMAN
SHARES WITHOUT SHARES WITH S&P 500 AGGREGATE
SALES CHARGE SALES CHARGE INDEX BOND INDEX
------------ ------------ ----- ----------
$9425.00 $10000.00 $10000.00 $10000.00
9381.00 9953.00 10128.00 9920.00
9425.00 10000.00 10294.00 9919.00
9259.00 9824.00 10042.00 9897.00
9481.00 10060.00 10371.00 10094.00
9677.00 10268.00 10796.00 10106.00
9449.00 10025.00 10532.00 9958.00
9565.00 10149.00 10769.00 9949.00
9368.00 9940.00 10377.00 9927.00
9489.00 10068.00 10531.00 9995.00
9679.00 10269.00 10803.00 10193.00
9959.00 10567.00 11225.00 10436.00
10184.00 10805.00 11556.00 10500.00
10484.00 11124.00 11895.00 10646.00
10939.00 11606.00 12371.00 11059.00
11141.00 11821.00 12658.00 11139.00
11334.00 12026.00 13079.00 11115.00
11370.00 12064.00 13111.00 11249.00
11759.00 12477.00 13665.00 11358.00
11805.00 12525.00 13615.00 11506.00
12210.00 12955.00 14213.00 11679.00
12363.00 13117.00 14487.00 11842.00
12625.00 13395.00 14980.00 11920.00
12616.00 13386.00 15119.00 11713.00
12708.00 13483.00 15264.00 11631.00
12802.00 13583.00 15489.00 11566.00
13009.00 13803.00 15888.00 11543.00
13154.00 13956.00 15949.00 11697.00
12804.00 13585.00 15244.00 11729.00
12983.00 13775.00 15565.00 11709.00
13509.00 14333.00 16442.00 11913.00
13804.00 14646.00 16896.00 12177.00
14354.00 15230.00 18173.00 12385.00
14231.00 15099.00 17813.00 12270.00
14696.00 15593.00 18926.00 12308.00
14646.00 15540.00 19074.00 12339.00
14315.00 15189.00 18290.00 12202.00
14862.00 15769.00 19382.00 12385.00
15350.00 16286.00 20562.00 12503.00
15769.00 16731.00 21484.00 12651.00
16630.00 17644.00 23194.00 12993.00
16089.00 17071.00 21895.00 12883.00
16543.00 17552.00 23095.00 13072.00
16592.00 17605.00 22323.00 13262.00
16795.00 17819.00 23357.00 13323.00
17040.00 18080.00 23759.00 13457.00
17280.00 18335.00 24022.00 13629.00
17838.00 18927.00 25754.00 13618.00
18343.00 19462.00 27073.00 13665.00
18541.00 19673.00 27346.00 13736.00
18321.00 19438.00 26876.00 13866.00
18662.00 19800.00 27967.00 13984.00
18495.00 19624.00 27671.00 14014.00
17277.00 18331.00 23670.00 14242.00
17952.00 19047.00 25187.00 14575.00
18887.00 20040.00 27234.00 14498.00
19411.00 20595.00 28885.00 14581.00
20069.00 21293.00 30549.00 14624.00
20460.00 21708.00 31826.00 14728.00
20000.00 21220.00 30836.00 14470.00
20628.00 21886.00 32069.00 14550.00
20788.00 22057.00 33310.00 14597.00
20279.00 21516.00 32524.00 14468.00
20744.00 22009.00 34329.00 14422.00
20511.00 21763.00 33258.00 14360.00
20279.00 21517.00 33095.00 14353.00
20091.00 21317.00 32188.00 14519.00
20722.00 21986.00 34226.00 14573.00
20966.00 22245.00 34921.00 14571.00
21557.00 22873.00 36978.00 14501.00
20958.00 22237.00 35121.00 14454.00
21029.00 22312.00 34458.00 14628.00
22409.00 23776.00 37827.00 14822.00
22324.00 23686.00 36689.00 14779.00
21819.00 23150.00 35937.00 14771.00
22683.00 24067.00 36824.00 15078.00
22781.00 24171.00 36250.00 15216.00
23760.00 25210.00 38501.00 15436.00
23045.00 24451.00 36468.00 15534.00
22826.00 24219.00 36315.00 15636.00
21817.00 23148.00 33453.00 15892.00
21979.00 23320.00 33617.00 16188.00
22579.00 23956.00 34811.00 16454.00
21263.00 22560.00 31636.00 16597.00
20352.00 21594.00 29630.00 16680.00
21136.00 22426.00 31933.00 16610.00
21161.00 22452.00 32147.00 16709.00
20647.00 21907.00 31365.00 16773.00
20596.00 21852.00 31058.00 17148.00
19939.00 21155.00 29114.00 17346.00
18956.00 20112.00 26761.00 17549.00
19384.00 20567.00 27272.00 17915.00
20136.00 21365.00 29364.00 17668.00
20168.00 21399.00 29623.00 17555.00
19622.00 20819.00 29190.00 17697.00
19141.00 20309.00 28627.00 17869.00
19551.00 20743.00 29703.00 17572.00
18780.00 19926.00 27903.00 17913.00
18688.00 19828.00 27697.00 18065.00
17741.00 18823.00 25725.00 18221.00
17125.00 18170.00 23721.00 18441.00
17257.00 18310.00 23875.00 18753.00
16046.00 17025.00 21280.00 19057.00
16955.00 17990.00 23152.00 18969.00
17544.00 18614.00 24516.00 18963.00
17024.00 18063.00 23077.00 19356.00
16681.00 17698.00 22472.00 19373.00
16482.00 17488.00 22135.00 19641.00
16553.00 17563.00 22350.00 19625.00
17379.00 18439.00 24192.00 19788.00
18231.00 19343.00 25466.00 20156.00
18466.00 19592.00 25792.00 20116.00
18506.00 19635.00 26246.00 19440.00
18826.00 19975.00 26758.00 19568.00
18789.00 19935.00 26475.00 20087.00
19392.00 20575.00 27973.00 19900.00
19594.00 20789.00 28219.00 19948.00
20268.00 21504.00 29698.00 20151.00
20578.00 21833.00 30244.00 20312.00
20835.00 22106.00 30665.00 20532.00
20866.00 22140.00 30191.00 20689.00
The graph and table do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or redemption of fund shares. The Standard &
Poor's (S&P) 500 Index tracks the performance of 500 widely held,
large-capitalization US stocks. 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 par
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 03/31/04 (%)
SHARE CLASS A B C G T Z
--------------------------------------------------------------------------------------------------------------
INCEPTION 11/01/98 11/01/98 11/18/02 03/04/96 12/30/91 12/30/91
--------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
--------------------------------------------------------------------------------------------------------------
6-month
(cumulative) 11.03 4.68 10.58 5.58 10.64 9.64 10.59 5.59 11.00 4.65 11.12
--------------------------------------------------------------------------------------------------------------
1-year 26.03 18.77 25.05 20.05 24.98 23.98 25.07 20.07 25.89 18.64 26.23
--------------------------------------------------------------------------------------------------------------
5-year 0.22 -0.96 -0.48 -0.84 -0.48 -0.48 -0.53 -1.06 0.16 -1.02 0.40
--------------------------------------------------------------------------------------------------------------
10-year 8.27 7.63 7.86 7.86 7.86 7.86 7.60 7.60 8.23 7.59 8.45
All results shown assume reinvestment of distributions. The "with sales charge"
returns include the maximum initial sales charge of 5.75% 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 C CDSC of 1.00% 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 the class T shares, the "with sales
charge" returns include the maximum 5.75% charge. Performance for different
share classes will vary based on differences in sales charges and fees
associated with each class.
Performance results reflect any 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.
The returns for class A and class B shares include the returns of Prime A Shares
(for class A shares) and Prime B Shares (for class B shares) of the Galaxy Fund
for periods prior to November 18, 2002. The returns shown for class A shares and
class B shares also include the returns of Retail A Shares of the Galaxy Fund
(adjusted, as necessary, to reflect the sales charges applicable to class A
shares and class B shares, respectively), for periods prior to the inception of
Prime A Shares (November 1, 1998) and Prime B Shares (November 1, 1998). Class A
and class B shares generally would have had substantially similar returns to
Retail A Shares because they would have been invested in the same portfolio of
securities, although returns would have been lower to the extent that expenses
for class A and class B shares exceed expenses paid by Retail A Shares. The
returns shown for class C shares include the returns of Prime B Shares of the
Galaxy Fund (adjusted to reflect the sales charge applicable to class C shares)
for periods prior to November 18, 2002, the date on which class C shares were
initially offered by the Fund. The returns shown for class C shares also include
the returns of Retail A Shares of the Galaxy Fund (adjusted to reflect the sales
charges applicable to class C shares) for periods prior to the date of inception
of Prime B Shares (November 1, 1998). Class C shares generally would have had
substantially similar returns because they would have been invested in the same
portfolio of securities, although the returns would have been lower to the
extent that expenses for class C shares exceed expenses paid by Retail A and
Prime B Shares. Retail A shares of the Galaxy Fund were initially offered on
December 30, 1991. Class A, B and C shares were initially offered on November
18, 2002. The returns for class G and class T shares include the returns of
Retail A Shares (for class T shares) and Retail B Shares (for class G shares) of
the Galaxy Fund for periods prior to November 18, 2002, the date on which class
T and class G shares were initially offered by the Fund. The returns shown for
class G shares also include the returns of Retail A Shares (adjusted to reflect
sales charges applicable to class G shares) for periods prior to the inception
of Retail B Shares of the Galaxy Fund (March 4, 1996). Retail A Shares of the
Galaxy Fund were initially offered on December 30, 1991. Class G shares
generally would have had substantially similar returns to Retail A Shares
because they would have been invested in the same portfolio of securities,
although the returns would have been lower to the extent that expenses for class
G shares exceed expenses paid by Retail A Shares. The returns for class Z share
include returns of Trust Shares of the Galaxy Fund for periods prior to November
18, 2002, the date on which class Z shares were initially offered by the Fund.
Trust Shares of the Galaxy Fund were initially offered on December 30, 1991.
2
SUMMARY
o FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2004, THE FUND'S CLASS A SHARES
RETURNED 11.03% WITHOUT SALES CHARGE.
o THE FUND'S RETURN WAS BETWEEN ITS TWO BENCHMARKS, THE S&P 500 INDEX AND THE
LEHMAN BROTHERS AGGREGATE BOND INDEX. IT WAS HIGHER THAN THE MORNINGSTAR(R)
MODERATE ASSET ALLOCATION CATEGORY AVERAGE.
o OUR DECISION TO MAINTAIN THE FUND'S EMPHASIS ON STOCKS AND ITS POSITION IN
HIGH-YIELD BONDS AIDED PERFORMANCE.
[Three up arrows]
LEHMAN
BROTHERS
CLASS A S&P 500 AGGREGATE
SHARES INDEX BOND INDEX
11.03% 14.08% 2.98%
OBJECTIVE
Seeks a high total return by providing both a current level of
income greater than that provided by popular stock market averages, as
well as long-term growth in the value of the Fund's assets.
TOTAL NET ASSETS
$472.4 million
NET ASSET VALUE PER SHARE
AS OF 03/31/04 ($)
Class A 15.38
Class B 15.37
Class C 15.38
Class G 15.37
Class T 15.38
Class Z 15.37
DISTRIBUTIONS DECLARED PER SHARE
10/01/03 - 03/31/04 ($)
Class A 0.17
Class B 0.11
Class C 0.11
Class G 0.11
Class T 0.16
Class Z 0.19
PORTFOLIO MANAGERS' REPORT______________________________________________________
Columbia Asset Allocation Fund
For the six-month period ended March 31, 2004, Columbia Asset Allocation Fund
class A shares returned 11.03% without sales charge. That compares with a 14.08%
return for the S&P 500 Index and a 2.98% return for the Lehman Brothers
Aggregate Bond Index. We expect the fund, which typically has an allocation of
60% stocks and 40% bonds, to generate a return that is between these two
benchmarks. We are pleased that the fund's return surpassed the average return
of its peer group, the Morningstar(R) Moderate Asset Allocation Category, which
was 10.41%.1
IMPROVING ECONOMY FUELS MARKET MOMENTUM
Against a backdrop of improving economic news and rising corporate profits, the
stock market continued to rise and bond market held steady. This environment
proved favorable for the fund, which maintained an allocation of approximately
65% in stocks and 35% in bonds during the six-month period. Within the fund's
bond allocation, our emphasis on high-yield bonds also aided performance.
A FOCUS ON OPPORTUNITIES OVERSEAS
Although small-cap stocks were strong performers in 2003, they became
increasingly expensive relative to their earning power. As a result, we reduced
our position in small-cap stocks to a neutral weight at the beginning of the
period. In retrospect, our move was premature as small-cap stocks continued to
perform strongly throughout the period and the fund gave up some performance
with this move. However, investor interest began to rotate away from these more
speculative companies and toward higher-quality companies with better long-term
business prospects and whose stocks were reasonably priced. This shift helped
large-cap value stocks perform well during the second half of the period.
We used the proceeds of our shift away from small caps to increase our exposure
to large-cap stocks, especially international large caps. We believe that a
weaker US dollar, positive economic growth overseas and good valuations make
foreign companies attractive relative to their US counterparts. This asset
allocation decision benefited the fund's performance. Foreign companies enjoyed
strong performance as evidenced by the MSCI EAFE Index, which posted a six month
return of 22.16% versus 14.08% for the S&P 500 Index.
WE SHIFTED HIGH-YIELD EXPOSURE TO NEUTRAL
We started the period with a significant investment in high-yield bonds because
we believed that the high-yield market was priced for greater economic risk than
we perceived existed. After the high yield market performed relatively strongly,
the yield advantage between high-yield and investment grade bonds narrowed as
the markets grew increasingly optimistic about the prospects for the economy. As
a result, we reduced our overweight in high-yield to a neutral position during
the period. The
1 (C)2004, Morningstar, Inc. All rights reserved. The information contained
herein is the proprietary information of Morningstar, Inc., may not be
copied or redistributed for any purpose and may only be used for
noncommercial, personal purposes. The information contained herein is not
represented or warranted to be accurate, correct, complete or timely.
Morningstar, Inc. shall not be responsible for investment decisions, damages
or other losses resulting from the use of this information. Past performance
is no guarantee of future performance. Morningstar, Inc. has not granted
consent for it to be considered or deemed an "expert" under the Securities
Act of 1933.
3
TOP 5 EQUITY SECTORS AS OF 03/31/04 (%)
Financials 13.4
Information technology 11.8
Consumer discretionary 8.4
Health care 7.7
Industrials 7.3
TOP 10 EQUITY HOLDINGS
AS OF 03/31/04 (%)
Citigroup 1.2
Pfizer 1.2
General Electric 1.1
BP PLC 0.9
Microsoft 0.8
Intel 0.8
Cisco Systems 0.7
PepsiCo 0.7
Exxon Mobil 0.7
American International Group 0.6
PORTFOLIO STRUCTURE AS OF 03/31/04 (%)
Common stocks 65.5
Corporate notes and bonds 14.6
Mortgage-backed securities 11.3
Asset-backed securities 3.1
U.S. government and
agency obligations 2.8
Cash equivalents, net other
assets and liabilities 2.4
Preferred stock 0.2
Investment management companies 0.1
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 Asset Allocation Fund
fund's high-yield position made a positive contribution to relative performance.
Our emphasis on higher-quality high-yield bonds was rewarded as investors
shifted their attention away from the lower-quality bonds that had led the way
earlier in 2003. Our underweight position in real estate investment trusts
(REITs) detracted from performance as REITs were one of the better performers
during the period.
POSITIONED FOR CONTINUED ECONOMIC GROWTH
We believe that continued economic growth, both at home and abroad, and rising
corporate profits could provide an attractive environment for stocks. However,
the bond market is vulnerable because interest rates are expected to move higher
if the economy continues to strengthen, which we expect it to do. Interest rates
and bond prices generally move in opposite directions. As a result, we continue
to favor stocks over bonds in our asset allocation, with an emphasis on
international and large-cap US stocks within the equity portion of the fund.
Within the bond portion of the portfolio, we remain neutral on high-yield bonds
and we have reduced investment grade bonds to an underweight because they are
vulnerable to rising interest rates.
[Photo of Harvey Hirschhorn]
Harvey Hirschhorn, CFA, is the lead manager for Columbia
Asset Allocation Fund and has co-managed the fund
since October 2002. He has been with the advisor
and its predecessors since 1973. He is responsible
for allocating the fund's assets among the various
asset classes. The investment decisions for these
asset classes are made by professionals with
expertise in that class.
/s/ Harvey Hirschhorn
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 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.
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.
4
PERFORMANCE OF A $10,000 INVESTMENT
04/01/94 - 03/31/04 ($)
SALES CHARGE WITHOUT WITH
------------ ------- ------
Class A 25,083 23,647
Class B 24,093 24,093
Class C 24,119 24,119
Class G 23,327 23,327
Class T 24,904 23,479
Class Z 25,905 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 Large Cap Growth Fund
VALUE OF A $10,000 INVESTMENT 04/01/94 - 03/31/04
[Mountain Chart]
CLASS A CLASS A
SHARES WITHOUT SHARES WITH S&P 500 RUSSELL 1000
SALES CHARGE SALES CHARGE INDEX GROWTH INDEX
------------ ------------ ----- ------------
$10000.00 $9425.00 $10000.00 $10000.00
10082.00 9502.00 10128.00 10046.00
10300.00 9708.00 10294.00 10199.00
9989.00 9414.00 10042.00 9897.00
10199.00 9613.00 10371.00 10235.00
10658.00 10046.00 10796.00 10805.00
10424.00 9825.00 10532.00 10660.00
10695.00 10080.00 10769.00 10910.00
10401.00 9803.00 10377.00 10560.00
10438.00 9838.00 10531.00 10737.00
10661.00 10048.00 10803.00 10967.00
10959.00 10329.00 11225.00 11427.00
11276.00 10628.00 11556.00 11760.00
11614.00 10946.00 11895.00 12018.00
12052.00 11359.00 12371.00 12436.00
12433.00 11718.00 12658.00 12916.00
12817.00 12080.00 13079.00 13453.00
12756.00 12022.00 13111.00 13468.00
13250.00 12489.00 13665.00 14089.00
13319.00 12553.00 13615.00 14099.00
13865.00 13068.00 14213.00 14647.00
13951.00 13149.00 14487.00 14731.00
14415.00 13586.00 14980.00 15223.00
14603.00 13764.00 15119.00 15501.00
14704.00 13859.00 15264.00 15521.00
14988.00 14126.00 15489.00 15930.00
15327.00 14445.00 15888.00 16486.00
15337.00 14456.00 15949.00 16509.00
14511.00 13676.00 15244.00 15541.00
14842.00 13988.00 15565.00 15942.00
15676.00 14774.00 16442.00 17103.00
16053.00 15130.00 16896.00 17205.00
17134.00 16149.00 18173.00 18498.00
16810.00 15843.00 17813.00 18135.00
17640.00 16626.00 18926.00 19406.00
17272.00 16279.00 19074.00 19274.00
16776.00 15811.00 18290.00 18232.00
17690.00 16673.00 19382.00 19442.00
18907.00 17820.00 20562.00 20846.00
19484.00 18364.00 21484.00 21680.00
21181.00 19963.00 23194.00 23596.00
20484.00 19306.00 21895.00 22216.00
21552.00 20312.00 23095.00 23309.00
21131.00 19916.00 22323.00 22446.00
21619.00 20376.00 23357.00 23400.00
21926.00 20666.00 23759.00 23663.00
22124.00 20852.00 24022.00 24370.00
23580.00 22224.00 25754.00 26203.00
24794.00 23368.00 27073.00 27248.00
25260.00 23808.00 27346.00 27624.00
24368.00 22967.00 26876.00 26840.00
25155.00 23709.00 27967.00 28482.00
24778.00 23353.00 27671.00 28294.00
20677.00 19488.00 23670.00 24047.00
22214.00 20936.00 25187.00 25894.00
24244.00 22850.00 27234.00 27976.00
25551.00 24082.00 28885.00 30105.00
27526.00 25943.00 30549.00 32820.00
28731.00 27079.00 31826.00 34747.00
27568.00 25983.00 30836.00 33159.00
29136.00 27461.00 32069.00 34907.00
29690.00 27983.00 33310.00 34952.00
28868.00 27208.00 32524.00 33879.00
31128.00 29338.00 34329.00 36250.00
30147.00 28414.00 33258.00 35098.00
29731.00 28022.00 33095.00 35670.00
29443.00 27750.00 32188.00 34921.00
30883.00 29107.00 34226.00 37557.00
32056.00 30213.00 34921.00 39585.00
34685.00 32690.00 36978.00 43702.00
33395.00 31474.00 35121.00 41652.00
34323.00 32349.00 34458.00 43689.00
37772.00 35600.00 37827.00 46817.00
37172.00 35034.00 36689.00 44589.00
35793.00 33735.00 35937.00 42342.00
36892.00 34770.00 36824.00 45551.00
36497.00 34398.00 36250.00 43652.00
39190.00 36937.00 38501.00 47602.00
37199.00 35060.00 36468.00 43099.00
36556.00 34454.00 36315.00 41060.00
33050.00 31150.00 33453.00 35008.00
34194.00 32228.00 33617.00 33902.00
35018.00 33004.00 34811.00 36244.00
31449.00 29641.00 31636.00 30090.00
28845.00 27187.00 29630.00 26816.00
30934.00 29155.00 31933.00 30209.00
31076.00 29289.00 32147.00 29765.00
29737.00 28027.00 31365.00 29074.00
29246.00 27564.00 31058.00 28347.00
27275.00 25707.00 29114.00 26028.00
24635.00 23218.00 26761.00 23431.00
25433.00 23970.00 27272.00 24661.00
27340.00 25768.00 29364.00 27031.00
27767.00 26170.00 29623.00 26979.00
26776.00 25236.00 29190.00 26502.00
25900.00 24411.00 28627.00 25402.00
27615.00 26027.00 29703.00 26281.00
25914.00 24423.00 27903.00 24136.00
25307.00 23852.00 27697.00 23552.00
23065.00 21739.00 25725.00 21374.00
21365.00 20137.00 23721.00 20198.00
21519.00 20282.00 23875.00 20259.00
19135.00 18034.00 21280.00 18158.00
20694.00 19504.00 23152.00 19823.00
21801.00 20548.00 24516.00 20899.00
20303.00 19136.00 23077.00 19455.00
19774.00 18637.00 22472.00 18982.00
19568.00 18443.00 22135.00 18895.00
19775.00 18638.00 22350.00 19247.00
21272.00 20049.00 24192.00 20669.00
22421.00 21132.00 25466.00 21700.00
22511.00 21216.00 25792.00 22000.00
22718.00 21412.00 26246.00 22548.00
23299.00 21960.00 26758.00 23109.00
22705.00 21400.00 26475.00 22862.00
23945.00 22568.00 27973.00 24147.00
24242.00 22848.00 28219.00 24400.00
24809.00 23383.00 29698.00 25244.00
25236.00 23785.00 30244.00 25759.00
25390.00 23930.00 30665.00 25924.00
25083.00 23647.00 30191.00 25441.00
The graph and table do not reflect a deduction of the taxes that the shareholder
would pay on the fund distributions or the redemption of the fund shares. The
Standard & Poor's (S&P) 500 Index is an unmanaged index that tracks the
performance of 500 widely held, large-capitalization US stocks.The Russell 1000
Growth Index is an unmanaged index that tracks the performance of those
companies in the Russell 1000 Index 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 03/31/04(%)
SHARE CLASS A B C G T Z
----------------------------------------------------------------------------------------------------------------------------------
INCEPTION 11/01/98 11/01/98 11/18/02 03/04/96 12/14/90 12/14/90
----------------------------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
----------------------------------------------------------------------------------------------------------------------------------
6-month (cumulative) 10.52 4.18 10.08 5.08 10.07 9.07 10.04 5.04 10.51 4.15 10.71
----------------------------------------------------------------------------------------------------------------------------------
1-year 26.89 19.63 25.89 20.89 26.03 25.03 25.82 20.82 26.82 19.53 27.34
----------------------------------------------------------------------------------------------------------------------------------
5-year -2.95 -4.09 -3.74 -4.06 -3.72 -3.72 -3.91 -4.39 -3.14 -4.28 -2.74
----------------------------------------------------------------------------------------------------------------------------------
10-year 9.63 8.99 9.19 9.19 9.20 9.20 8.84 8.84 9.55 8.91 9.99
All results shown assume reinvestment of distributions. The "with sales charge"
returns include the maximum initial sales charge of 5.75% 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 C CDSC of 1.00% 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 the class T shares, the "with sales
charge" returns include the maximum 5.75% charge. Performance for different
share classes will vary based on differences in sales charges and fees
associated with each class.
Performance results reflect any 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.
The returns for class A and class B shares include the returns of Prime A Shares
(for class A shares) and Prime B Shares (for class B shares) of the Galaxy Fund
for periods prior to November 18, 2002, the date on which class A and class B
shares were initially offered by the Fund. The returns shown for class A shares
and class B shares also include the returns of Retail A Shares of the Galaxy
Fund (adjusted, as necessary, to reflect the sales charges applicable to class A
shares and class B shares, respectively) for periods prior to the date of
inception of Prime A Shares and Prime B Shares (November 1, 1998). Class A and
class B shares generally would have had substantially similar returns to Retail
A Shares because they would have been invested in the same portfolio of
securities, although returns would have been lower to the extent that expenses
for class A and class B shares exceed expenses paid by Retail A Shares. The
returns shown for class C shares include the returns of Prime B Shares of the
Galaxy Fund (adjusted to reflect the sales charge applicable to class C shares)
for periods prior to November 18, 2002, the date on which class C shares were
initially offered by the Fund. The returns shown for class C shares also include
the returns of Retail A Shares of the Galaxy Fund (adjusted to reflect the sales
charges applicable to class C shares) for periods prior to the date of inception
of Prime B Shares (November 1, 1998). Class C shares generally would have had
substantially similar returns because they would have been invested in the same
portfolio of securities, although the returns would have been lower to the
extent that expenses for class C shares exceed expenses paid by Retail A and
Prime B Shares. The returns for class G and class T shares include the returns
of Retail A Shares (for class T shares) and Retail B Shares (for class G shares)
of the Galaxy Fund for periods prior to November 18, 2002, the date on which
class T and class G shares were initially offered by the Fund. The returns shown
for class G shares also include the returns of Retail A Shares (adjusted to
reflect sales charges applicable to class G shares) for periods prior to the
inception of Retail B Shares of the Galaxy Fund (March 4, 1996). Retail A Shares
were initially offered on December 14, 1990. Class G shares generally would have
had substantially similar returns to Retail A Shares because they would have
been invested in the same portfolio of securities, although the returns would be
lower to the extent that expenses for class G shares exceed expenses paid by
Retail A Shares. The returns for class Z shares include returns of Trust Shares
of the Galaxy Fund for periods prior to November 18, 2002, the date on which
class Z shares were initially offered by the Fund. Trust Shares of the Galaxy
Fund were initially offered on December 14, 1990.
5
SUMMARY
o FOR THE SIX-MONTH PERIOD THAT ENDED MARCH 31, 2004, THE FUND'S CLASS A
SHARES RETURNED 10.52% WITHOUT SALES CHARGE.
o THE FUND'S RETURN WAS SLIGHTLY LOWER THAN ITS BENCHMARK, THE RUSSELL 1000
GROWTH INDEX. THE FUND ALSO TRAILED THE AVERAGE RETURN OF ITS PEER GROUP,
THE MORNINGSTAR(R) LARGE GROWTH CATEGORY.
o THE FUND WAS UNDERWEIGHT IN MORE SPECULATIVE STOCKS, WHICH WERE THE PERIOD'S
BEST PERFORMERS.
[Three up arrows]
RUSSELL
CLASS A S&P 500 1000 GROWTH
SHARES INDEX INDEX
10.52% 14.08% 11.28%
OBJECTIVE
Seeks long-term capital
appreciation.
TOTAL NET ASSETS
$1,000.8 million
NET ASSET VALUE PER SHARE
AS OF 03/31/04 ($)
Class A 19.44
Class B 18.67
Class C 18.69
Class G 18.08
Class T 19.34
Class Z 19.74
DISTRIBUTIONS DECLARED PER SHARE
10/01/03 - 03/31/04 ($)
Class A 0.00
Class B 0.00
Class C 0.00
Class G 0.00
Class T 0.00
Class Z 0.01
PORTFOLIO MANAGERS' REPORT______________________________________________________
Columbia Large Cap Growth Fund
For the six-month period ended March 31, 2004, class A shares of Columbia
Large Cap Growth Fund returned 10.52% without sales charge. The fund
underperformed the Russell 1000 Growth Index, which returned 11.28% as well as
the S&P 500 Index which returned 14.08%. The fund also underperformed the
average return of its peer group, the Morningstar(R) Large Growth Category,
which was 11.63% for the period.1
RELATIVELY LIGHT EXPOSURE TO SPECULATIVE COMPANIES SHAVED PERFORMANCE
During a period that was generally positive for stocks, we positioned the
portfolio to take advantage of economic recovery. We focused mostly on
high-quality companies with sustainable earnings, good management and the
potential to increase market share. We also invested in cyclical companies
that often do well at the beginning of an economic recovery. These more
volatile companies were the most popular with investors during the period.
However, we had relatively few of them in the portfolio, and the fund's
performance fell short of its benchmark.
AN EMPHASIS ON ECONOMICALLY SENSITIVE STOCKS
The fund's investment in technology stocks made a positive contribution to
performance. We invested in software and semiconductor companies that have the
potential to benefit from two trends: an increase in corporate spending and a
growing popularity of advanced communications devices. Because earnings have
been strong, corporations have finally opened their checkbooks to spend on
advertising, new equipment and technology upgrades. In addition, as more
people use high-speed Internet services and wireless devices for their
personal business and entertainment, companies that make the components for
these products have done well. In this regard, the fund benefited from its
investment in Intel, which profited from both trends. The company makes
semiconductors that are used in a variety of technology products, used by
business as well as consumers. Yahoo! and eBay have also benefited from
growing demand for Internet services.
In the industrial sector, our investment in Tyco International also aided the
fund's return. Tyco's new management has put the company on a more solid
footing. Also, the company's electronics, security and telecommunications
subsidiaries have been the beneficiaries of a strengthening economy.
1 (C)2004, Morningstar, Inc. All rights reserved. The information contained
herein is the proprietary information of Morningstar, Inc., may not be
copied or redistributed for any purpose and may only be used for
noncommercial, personal purposes. The information contained herein is not
represented or warranted to be accurate, correct, complete or timely.
Morningstar, Inc. shall not be responsible for investment decisions, damages
or other losses resulting from the use of this information. Past performance
is no guarantee of future performance. Morningstar, Inc. has not granted
consent for it to be considered or deemed an "expert" under the Securities
Act of 1933.
6
TOP 5 SECTORS AS OF 03/31/04 (%)
Information technology 32.2
Health care 19.3
Consumer discretionary 14.6
Industrials 12.0
Consumer staples 11.6
TOP 10 HOLDINGS AS OF 03/31/04 (%)
General Electric 5.4
Pfizer 4.6
Intel 3.9
Cisco Systems 3.7
Microsoft 3.4
Teva Pharmaceutical Industries 2.4
Caremark Rx 2.1
Wal-Mart Stores 2.0
Tyco International 2.0
Amgen 1.9
HOLDINGS DISCUSSED IN THIS REPORT
AS OF 03/31/04 (%)
Intel 3.9
Yahoo! 0.7
eBay 0.8
Tyco International 2.0
Chico's FAS 0.9
Cendant 1.3
Caremark Rx 2.1
St. Jude Medical 1.3
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 Large Cap Growth Fund
In the consumer discretionary area, earnings at Chico's FAS, a women's clothing
store, exceeded expectations boosting its stock price, which aided the fund's
total return. Cendant, a diversified company that owns real estate and
travel-related businesses, also contributed to performance.
DEFENSIVE STOCKS WERE A POSITIVE INFLUENCE ON PERFORMANCE
Both stock selection and sector allocation in health care, an area that tends to
be less sensitive to the swings in the economy, were positive. In health care,
we added Caremark Rx, an online pharmacy. We believe Caremark Rx will be a
beneficiary of the new Medicaid legislation that expands drug coverage to senior
citizens. We also invested in St. Jude Medical, a medical technology company
that makes products used in the treatment of heart disease. Stocks in the
consumer staples sector also aided total return. This is another area that tends
to be less affected by economic cycles.
HIGHER INTEREST RATES MAY CALL FOR A CHANGE IN DIRECTION
As long as inflation is under control, the economy is growing at a steady pace
and interest rates remain low, we intend to maintain our emphasis on companies
whose prospects are tied to a better economy. However, if inflation moves higher
and interest rates rise as the economic recovery matures, we would consider
shifting our focus away from companies that depend on an expanding economy for
their growth and adding more companies that have the potential to do well in any
type of economic environment. Higher rates would likely dampen earnings growth
and make it more difficult for stock prices to advance. However, we believe that
companies whose prospects are less dependent on the economy would likely have an
edge in that environment.
Alexander S. Macmillan has co-managed the Columbia Large Cap
Growth Fund since July 2003 and has been with the advisor
and its predecessors since 1989.
/s/ Alex Macmillan
Paul J. Berlinguet has co-managed the fund since October
2003 and has been with the advisor since October 2003.
/s/ Paul J. Berlinguet]
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 development and the possibility of losses due to the sensitivity of
growth stock prices to changes in current or expected earnings.
7
PERFORMANCE OF A $10,000 INVESTMENT
04/01/94 - 03/31/04 ($)
SALES CHARGE WITHOUT WITH
------------ ------- ----
Class A 25,790 24,304
Class B 24,330 24,330
Class C 24,290 24,290
Class G 24,353 24,353
Class T 25,733 24,249
Class Z 26,709 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 Disciplined Value Fund
VALUE OF A $10,000 INVESTMENT 04/01/94 - 03/31/04
[Mountain Chart]
CLASS A CLASS A
SHARES WITHOUT SHARES WITH RUSSELL 1000 S&P 500
SALES CHARGE SALES CHARGE VALUE INDEX INDEX
------------ ------------ ------------ -----
$10000.00 $ 9425.00 $10000.00 $10000.00
10079.00 9499.00 10192.00 10128.00
10159.00 9575.00 10310.00 10294.00
9958.00 9386.00 10063.00 10042.00
10190.00 9604.00 10376.00 10371.00
10747.00 10129.00 10675.00 10796.00
10497.00 9893.00 10321.00 10532.00
10640.00 10028.00 10465.00 10769.00
10433.00 9833.00 10043.00 10377.00
10529.00 9923.00 10159.00 10531.00
10671.00 10057.00 10472.00 10803.00
11017.00 10383.00 10887.00 11225.00
11255.00 10607.00 11127.00 11556.00
11389.00 10734.00 11478.00 11895.00
11904.00 11220.00 11960.00 12371.00
12212.00 11509.00 12122.00 12658.00
12470.00 11753.00 12544.00 13079.00
12533.00 11812.00 12720.00 13111.00
12918.00 12175.00 13181.00 13665.00
12854.00 12115.00 13050.00 13615.00
13527.00 12749.00 13711.00 14213.00
13452.00 12679.00 14055.00 14487.00
13889.00 13091.00 14493.00 14980.00
14142.00 13329.00 14604.00 15119.00
14175.00 13360.00 14852.00 15264.00
14428.00 13599.00 14908.00 15489.00
14799.00 13948.00 15095.00 15888.00
14753.00 13905.00 15107.00 15949.00
14178.00 13363.00 14536.00 15244.00
14666.00 13822.00 14951.00 15565.00
15381.00 14497.00 15546.00 16442.00
15617.00 14719.00 16148.00 16896.00
16821.00 15854.00 17319.00 18173.00
16291.00 15354.00 17097.00 17813.00
17053.00 16073.00 17926.00 18926.00
16987.00 16010.00 18190.00 19074.00
16221.00 15288.00 17535.00 18290.00
17127.00 16143.00 18272.00 19382.00
18433.00 17373.00 19293.00 20562.00
18751.00 17673.00 20121.00 21484.00
20503.00 19324.00 21634.00 23194.00
19894.00 18750.00 20864.00 21895.00
20867.00 19667.00 22124.00 23095.00
20222.00 19059.00 21506.00 22323.00
20677.00 19488.00 22457.00 23357.00
20797.00 19601.00 23113.00 23759.00
21080.00 19868.00 22785.00 24022.00
22774.00 21465.00 24318.00 25754.00
23927.00 22551.00 25806.00 27073.00
24142.00 22754.00 25979.00 27346.00
23213.00 21878.00 25595.00 26876.00
23891.00 22517.00 25922.00 27967.00
23095.00 21767.00 25466.00 27671.00
19312.00 18202.00 21677.00 23670.00
20241.00 19077.00 22921.00 25187.00
22221.00 20943.00 24697.00 27234.00
23836.00 22465.00 25848.00 28885.00
25736.00 24256.00 26727.00 30549.00
26793.00 25253.00 26941.00 31826.00
25566.00 24096.00 26561.00 30836.00
26361.00 24846.00 27111.00 32069.00
27129.00 25569.00 29643.00 33310.00
26738.00 25200.00 29317.00 32524.00
28299.00 26672.00 30167.00 34329.00
27170.00 25608.00 29283.00 33258.00
25888.00 24399.00 28197.00 33095.00
24816.00 23389.00 27213.00 32188.00
25471.00 24007.00 28780.00 34226.00
25611.00 24139.00 28556.00 34921.00
27455.00 25877.00 28693.00 36978.00
25748.00 24267.00 27757.00 35121.00
25199.00 23750.00 25695.00 34458.00
28304.00 26676.00 28830.00 37827.00
27837.00 26236.00 28495.00 36689.00
27628.00 26039.00 28794.00 35937.00
26161.00 24657.00 27479.00 36824.00
25711.00 24232.00 27822.00 36250.00
28094.00 26479.00 29369.00 38501.00
27015.00 25462.00 29639.00 36468.00
27467.00 25887.00 30368.00 36315.00
24986.00 23550.00 29242.00 33453.00
26578.00 25050.00 30707.00 33617.00
29300.00 27615.00 30823.00 34811.00
27169.00 25607.00 29966.00 31636.00
26322.00 24808.00 28909.00 29630.00
28533.00 26892.00 30325.00 31933.00
29106.00 27433.00 31007.00 32147.00
28140.00 26522.00 30319.00 31365.00
28554.00 26912.00 30255.00 31058.00
27075.00 25518.00 29042.00 29114.00
23541.00 22188.00 26998.00 26761.00
24645.00 23228.00 26765.00 27272.00
26856.00 25312.00 28320.00 29364.00
27855.00 26254.00 28989.00 29623.00
27348.00 25776.00 28766.00 29190.00
26112.00 24611.00 28812.00 28627.00
27995.00 26385.00 30174.00 29703.00
26559.00 25032.00 29139.00 27903.00
26559.00 25032.00 29285.00 27697.00
23786.00 22418.00 27604.00 25725.00
21457.00 20223.00 25037.00 23721.00
21296.00 20072.00 25227.00 23875.00
18705.00 17629.00 22422.00 21280.00
19393.00 18278.00 24083.00 23152.00
20547.00 19365.00 25601.00 24516.00
19575.00 18449.00 24490.00 23077.00
19313.00 18202.00 23897.00 22472.00
18585.00 17516.00 23259.00 22135.00
18666.00 17593.00 23299.00 22350.00
20225.00 19062.00 25349.00 24192.00
21542.00 20303.00 26986.00 25466.00
21886.00 20628.00 27324.00 25792.00
22149.00 20875.00 27731.00 26246.00
22594.00 21295.00 28163.00 26758.00
22312.00 21029.00 27887.00 26475.00
23568.00 22213.00 29594.00 27973.00
23832.00 22461.00 29997.00 28219.00
25107.00 23663.00 31844.00 29698.00
25596.00 24125.00 32405.00 30244.00
26003.00 24508.00 33098.00 30665.00
25790.00 24304.00 32805.00 30191.00
The graph and the table do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or redemption of fund shares. The Russell 1000
Value Index measures the performance of those Russell 1000 companies with lower
price-to-book ratios and lower forecasted growth values. The Standard & Poor's
(S&P) 500 Index is an unmanaged index that tracks the performance of 500 widely
held, large-capitalization US stocks. Unlike the fund, indices are not
investments, do not incur fees 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 03/31/04 (%)
SHARE CLASS A B C G T Z
----------------------------------------------------------------------------------------------------------------------------------
INCEPTION 11/25/02 11/25/02 11/25/02 03/04/96 09/01/88 09/01/88
----------------------------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
----------------------------------------------------------------------------------------------------------------------------------
6-month (cumulative) 15.62 9.00 15.11 10.11 15.14 14.14 15.11 10.11 15.57 8.94 15.75
----------------------------------------------------------------------------------------------------------------------------------
1-year 38.20 30.28 36.90 31.90 36.52 35.52 36.88 31.88 37.88 29.99 38.41
----------------------------------------------------------------------------------------------------------------------------------
5-year -0.44 -1.61 -1.24 -1.51 -1.27 -1.27 -1.22 -1.63 -0.48 -1.65 -0.10
----------------------------------------------------------------------------------------------------------------------------------
10-year 9.94 9.29 9.30 9.30 9.28 9.28 9.31 9.31 9.91 9.26 10.32
All results shown assume reinvestment of distributions. The "with sales charge"
returns include the maximum initial sales charge of 5.75% for class A shares,
the appropriate class B contingent deferred sales charge 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 C contingent deferred sales charge of 1% for the first year only. For
class G shares, the contingent deferred sales charge for the holding period
after purchase is as follows: through the first year - 5%, second year - 4%,
third year - 4%, fourth year - 4%, fifth year - 3%, sixth year - 2%, seventh
year - 1%, thereafter - 0%. For the class T shares, the "with sales charge"
returns include the maximum 5.75% charge. Performance for different share
classes will vary based on differences in sales charges and fees associated with
each class.
Performance results reflect any voluntary waivers or reimbursement of fund
expenses by the advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower.
Class A, class B and class C are newer classes of shares. Their performance
information includes returns of the Retail A Shares (for class A shares) and
Retail B Shares (for class B and class C shares) of the Galaxy Fund for periods
prior to November 25, 2002, the date on which class A, B and C shares were
initially offered by the Fund. The returns shown for class B and class C shares
also include the performance of Retail A Shares of the Galaxy Fund for periods
prior to the inception of Retail B Shares (March 4, 1996). Class B and class C
shares generally would have had substantially similar returns to Retail A Shares
because they would have been invested in the same portfolio of securities,
although the returns would have been lower to the extent that expenses for class
B and class C shares exceed expenses paid by Retail A Shares. The returns have
not been restated to reflect any differences in expenses (such as 12b-1 fees)
between any of the predecessor shares and the newer classes of shares. The
returns for class G and class T shares include the returns of Retail A Shares
(for class T shares) and Retail B Shares (for class G shares) of the Galaxy Fund
for periods prior to November 25, 2002, the date on which class T and class G
shares were initially offered by the Fund. The returns shown for class G shares
also include the returns of Retail A Shares (adjusted to reflect the sales
charge applicable to class G shares), for periods prior to the inception of
Retail B Shares of the Galaxy Fund (March 4, 1996). Retail A Shares were
initially offered on September 1, 1988. Class G shares generally would have had
substantially similar returns to Retail A Shares because they would have been
invested in the same portfolio of securities, although the returns would have
been lower to the extent that expenses for class G shares exceed expenses paid
by Retail A Shares. The returns for class Z shares include returns of Trust
Shares of the Galaxy Fund for periods prior to November 25, 2002, the date on
which class Z shares were initially offered by the Fund.
8
SUMMARY
o FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2004, THE FUND'S CLASS A SHARES
RETURNED 15.62% WITHOUT SALES CHARGE.
o THE FUND UNDERPERFORMED THE RUSSELL
1000 VALUE INDEX BUT CAME OUT AHEAD OF BOTH THE S&P 500 INDEX, AND ITS
PEER GROUP, THE MORNINGSTAR(R)LARGE BLEND CATEGORY AVERAGE.
o THE FUND'S SMALL-CAP STOCKS MADE A STRONG POSITIVE CONTRIBUTION TO
PERFORMANCE IN A PERIOD OF GENERALLY RISING PRICES. HOWEVER, AN EMPHASIS ON
HIGHER QUALITY COMPANIES ACCOUNTED FOR A SMALL MARGIN OF UNDERPERFORMANCE
RELATIVE TO THE RUSSELL 1000 VALUE INDEX.
[Three up arrows]
RUSSELL
CLASS A S&P 500 1000 VALUE
SHARES INDEX INDEX
15.62% 14.08% 17.65%
OBJECTIVE
Seeks long-term capital
appreciation, with income
as a secondary goal.
TOTAL NET ASSETS
$427.6 million
NET ASSET VALUE PER SHARE
AS OF 03/31/04 ($)
Class A 12.59
Class B 12.04
Class C 12.02
Class G 12.05
Class T 12.59
Class Z 12.82
DISTRIBUTIONS DECLARED PER SHARE
10/01/03 - 03/31/04 ($)
Class A 0.14
Class B 0.03
Class C 0.03
Class G 0.04
Class T 0.12
Class Z 0.18
PORTFOLIO MANAGERS' REPORT______________________________________________________
Columbia Disciplined Value Fund
For the six-month period ended March 31, 2004, Columbia Disciplined Value Fund
class A shares returned 15.62% without sales charge. The fund underperformed
the Russell 1000 Value Index, which returned 17.65% for the same period.
However, it performed better than both the S&P 500 Index, which returned
14.08%, and the Morningstar(R) Large Blend Category average, which was
13.54%.1 The fund's small-cap investments made a strong contribution to
performance as small caps led the market during the period. However, our
emphasis on higher quality companies resulted in a slight underperformance
relative to the Russell 1000 Value Index. Stocks of weaker, more speculative
companies outperformed those of well-established firms for most of the period.
SMALL-COMPANY STOCKS HELP FUND PERFORMANCE
The fund benefited most from its investment in small-cap stocks. The small-cap
sector tends to perform relatively well in the early stages of an economic
recovery, and it was true to form over the past six months. Although we tend
not to make big sector bets within the fund, we did well to limit exposure to
financial services stocks, which underperformed during the period. However,
our light exposure to energy stocks was negative for the fund as energy stocks
performed well.
TOP PERFORMERS--AND DISAPPOINTMENTS
Monsanto, Brunswick and Fairchild Semiconductor International were among the
fund's top performers. Monsanto, which produces agricultural chemicals and
related products, benefited from US government approval for a biotech product
designed to control corn borer and corn rootworm pests. The company also
continues to benefit from sales of a product that kills weeds in lawns.
Brunswick manufactures products serving indoor and outdoor recreation markets.
During the reporting period, the company signed an agreement to purchase three
aluminum boat brands from another company. These brands complement Brunswick's
line of fiberglass runabouts, yachts and aluminum boats. Fairchild, like many
mid-cap companies, benefited from an improving economy. The company makes
chips that convert voice to digital signals, which helped it take advantage of
rising cell phone sales. In addition, Fairchild makes components for CD and
DVD players, which also experienced higher sales.
1(C)2004, Morningstar, Inc. All rights reserved. The information contained
herein is the proprietary information of Morningstar, Inc., may not be copied or
redistributed for any purpose and may only be used for noncommercial, personal
purposes. The information contained herein is not represented or warranted to be
accurate, correct, complete or timely. Morningstar, Inc. shall not be
responsible for investment decisions, damages or other losses resulting from the
use of this information. Past performance is no guarantee of future performance.
Morningstar, Inc. has not granted consent for it to be considered or deemed an
"expert" under the Securities Act of 1933.
9
TOP 5 SECTORS AS OF 03/31/04 (%)
Financials 31.4
Consumer discretionary 12.4
Energy 10.9
Consumer staples 8.8
Telecommunication services 7.2
TOP 10 HOLDINGS AS OF 03/31/04 (%)
Citigroup 5.0
Exxon Mobil 4.9
ChevronTexaco 4.2
SBC Communications 3.9
J.P. Morgan Chase 3.4
BellSouth 3.3
Coca-Cola 2.8
Gillette 2.8
International Business Machines 2.5
Chubb 2.5
HOLDINGS DISCUSSED IN THIS REPORT
AS OF 03/31/04 (%)
Monsanto 2.0
Brunswick 1.3
Fairchild Semiconductor International 0.6
Washington Mutual 1.5
Kroger 0.7
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 Disciplined Value Fund
The fund's investments in Washington Mutual and Kroger were the period's biggest
disappointments. Washington Mutual, a consumer, residential and commercial
lender, benefited from the sale of its finance unit to Citigroup. However, it
reported lower year-over-year fourth-quarter earnings because of slower mortgage
activity and its shares lost ground. Kroger, a major supermarket chain, was hurt
by a long strike over the cost of health care. As a result, the company's
revenues declined during the strike, and it lost customers to competitors.
LARGE-COMPANY STOCKS GAIN MARKET POTENTIAL
As the economy continues to strengthen in the months ahead, we believe that
large-cap stocks have greater performance potential than small-cap stocks.
However, we will maintain our focus on stock selection by looking for
attractively priced stocks of companies with improving business prospects.
[Photo of Eric Remole]
Eric Remole has co-managed Columbia Large Company Index Fund
since January 2003 and has been with the advisor and its
predecessors since 2001.
/s/ Eric Remole]
[Photo of Michael Welhoelter]
Michael Welhoelter, CFA, has co-managed the fund since
January 2003 and has been with the advisor and its
predecessors since 2001.
/s/ Michael Welhoelter]
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.
Value stocks are securities of companies that may have experienced adverse
business or industry developments or may be subject to special risks that have
caused the stocks to be out of favor. If the advisor's assessment of a company's
prospects is wrong, the price of its stock may not approach the value the
advisor has placed on it.
10
PERFORMANCE OF A $10,000 INVESTMENT
04/01/94 - 03/31/04 ($)
SALES CHARGE WITHOUT WITH
------------ ------- ----
Class A 15,553 14,658
Class B 15,075 15,075
Class C 14,993 14,993
Class G 14,832 14,832
Class T 15,379 14,495
Class Z 16,215 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 Equity Fund
VALUE OF A $10,000 INVESTMENT 04/01/94 - 03/31/04
[Mountain Chart]
MSCI ALL
CLASS A CLASS A COUNTRY
SHARES WITHOUT SHARES WITH WORLD EX MSCI EAFE
SALES CHARGE SALES CHARGE U.S. INDEX INDEX
------------ ------------ ---------- -----
$10000.00 $9425.00 $10000.00 $10000.00
10161.00 9577.00 10339.00 10424.00
10201.00 9614.00 10342.00 10365.00
10176.00 9591.00 10416.00 10511.00
10337.00 9743.00 10585.00 10612.00
10610.00 10000.00 10941.00 10863.00
10353.00 9758.00 10670.00 10521.00
10594.00 9985.00 10957.00 10871.00
10040.00 9463.00 10429.00 10348.00
9988.00 9414.00 10405.00 10414.00
9532.00 8983.00 9932.00 10014.00
9491.00 8945.00 9879.00 9985.00
9939.00 9367.00 10437.00 10608.00
10265.00 9674.00 10844.00 11007.00
10354.00 9758.00 10795.00 10876.00
10256.00 9667.00 10646.00 10685.00
10835.00 10212.00 11250.00 11351.00
10509.00 9905.00 10859.00 10918.00
10623.00 10013.00 11045.00 11131.00
10526.00 9920.00 10750.00 10832.00
10761.00 10143.00 11003.00 11133.00
11091.00 10453.00 11438.00 11582.00
11325.00 10674.00 11595.00 11629.00
11416.00 10760.00 11595.00 11669.00
11634.00 10966.00 11812.00 11916.00
11986.00 11297.00 12170.00 12263.00
11843.00 11162.00 11987.00 12037.00
11876.00 11193.00 12048.00 12105.00
11467.00 10807.00 11648.00 11751.00
11400.00 10745.00 11717.00 11777.00
11726.00 11052.00 12008.00 12090.00
11668.00 10997.00 11888.00 11967.00
12161.00 11462.00 12346.00 12443.00
12202.00 11501.00 12203.00 12283.00
12246.00 11542.00 11979.00 11853.00
12363.00 11652.00 12198.00 12047.00
12460.00 11744.00 12172.00 12091.00
12647.00 11920.00 12276.00 12155.00
13423.00 12651.00 13033.00 12946.00
14402.00 13574.00 13753.00 13659.00
15150.00 14279.00 14030.00 13881.00
13823.00 13028.00 12926.00 12844.00
15034.00 14169.00 13626.00 13563.00
13520.00 12742.00 12465.00 12520.00
13475.00 12700.00 12309.00 12392.00
13859.00 13062.00 12450.00 12500.00
14153.00 13339.00 12823.00 13071.00
15263.00 14385.00 13678.00 13911.00
16079.00 15155.00 14151.00 14339.00
16373.00 15432.00 14253.00 14452.00
16712.00 15751.00 13994.00 14381.00
16823.00 15855.00 13942.00 14491.00
17181.00 16193.00 14074.00 14637.00
15090.00 14222.00 12090.00 12824.00
14366.00 13540.00 11835.00 12430.00
15366.00 14482.00 13075.00 13725.00
16412.00 15468.00 13777.00 14428.00
16947.00 15973.00 14251.00 14996.00
17711.00 16693.00 14235.00 14951.00
17109.00 16125.00 13917.00 14595.00
17397.00 16396.00 14589.00 15204.00
18056.00 17018.00 15318.00 15820.00
17426.00 16424.00 14598.00 15005.00
18142.00 17099.00 15270.00 15590.00
18496.00 17432.00 15627.00 16053.00
18984.00 17892.00 15682.00 16113.00
19280.00 18171.00 15787.00 16275.00
20055.00 18902.00 16374.00 16886.00
21202.00 19983.00 17029.00 17472.00
23990.00 22611.00 18654.00 19041.00
22875.00 21560.00 17641.00 17832.00
24627.00 23211.00 18117.00 18311.00
24566.00 23153.00 18798.00 19022.00
22328.00 21044.00 17749.00 18021.00
21537.00 20299.00 17295.00 17581.00
22246.00 20967.00 18032.00 18269.00
21527.00 20289.00 17319.00 17503.00
21820.00 20565.00 17534.00 17656.00
20544.00 19362.00 16561.00 16796.00
19783.00 18646.00 16034.00 16399.00
18741.00 17663.00 15316.00 15785.00
19163.00 18061.00 15838.00 16345.00
19304.00 18194.00 16076.00 16337.00
17596.00 16584.00 14803.00 15111.00
16289.00 15352.00 13756.00 14103.00
17277.00 16284.00 14692.00 15084.00
16512.00 15562.00 14286.00 14551.00
15782.00 14875.00 13739.00 13956.00
15370.00 14486.00 13432.00 13702.00
14592.00 13753.00 13099.00 13355.00
12873.00 12133.00 11710.00 12003.00
13180.00 12422.00 12037.00 12310.00
13862.00 13065.00 12588.00 12764.00
13923.00 13123.00 12750.00 12839.00
13241.00 12480.00 12204.00 12158.00
13529.00 12751.00 12292.00 12243.00
14186.00 13370.00 12945.00 12964.00
14138.00 13325.00 13044.00 12990.00
14090.00 13280.00 13187.00 13155.00
13504.00 12727.00 12617.00 12631.00
11997.00 11307.00 11387.00 11384.00
11734.00 11059.00 11388.00 11358.00
10670.00 10056.00 10181.00 10138.00
11101.00 10462.00 10727.00 10683.00
11471.00 10812.00 11242.00 11168.00
11151.00 10510.00 10880.00 10793.00
10659.00 10046.00 10499.00 10342.00
10526.00 9921.00 10285.00 10106.00
10491.00 9887.00 10086.00 9908.00
11224.00 10578.00 11058.00 10879.00
11837.00 11156.00 11763.00 11538.00
12089.00 11394.00 12088.00 11817.00
12425.00 11710.00 12410.00 12103.00
12749.00 12016.00 12780.00 12395.00
13013.00 12265.00 13138.00 12776.00
13830.00 13035.00 13989.00 13572.00
13987.00 13182.00 14294.00 13874.00
14925.00 14067.00 15385.00 14957.00
15215.00 14340.00 15632.00 15168.00
15408.00 14522.00 16029.00 15518.00
15553.00 14658.00 16130.00 15608.00
The graph and table do not reflect the deduction of taxes a shareholder would
pay on fund distributions or the redemption of fund shares. The Morgan Stanley
Capital International (MSCI) All Country World ex U.S. Index is an unmanaged
index of global stock market performance that includes developed and emerging
markets but excludes the United States. The MSCI EAFE Index is an unmanaged
index that tracks the performance of selected stocks in Europe, Australia, Asia
and the Far East. 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 03/31/04 (%)
SHARE CLASS A B C G T Z
----------------------------------------------------------------------------------------------------------------------------------
INCEPTION 11/01/98 11/01/98 11/18/02 11/01/98 12/30/91 12/30/91
----------------------------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
----------------------------------------------------------------------------------------------------------------------------------
6-month (cumulative) 19.51 12.65 19.07 14.07 18.86 17.86 19.03 14.03 19.38 12.50 19.75
----------------------------------------------------------------------------------------------------------------------------------
1-year 48.26 39.78 47.13 42.13 46.66 45.66 47.33 42.33 48.27 39.73 48.97
----------------------------------------------------------------------------------------------------------------------------------
5-year -2.22 -3.37 -2.74 -3.06 -2.85 -2.85 -3.00 -3.48 -2.24 -3.40 -1.72
----------------------------------------------------------------------------------------------------------------------------------
10-year 4.52 3.90 4.19 4.19 4.13 4.13 4.02 4.02 4.40 3.78 4.95
All results shown assume reinvestment of distributions. The "with sales charge"
returns include the maximum initial sales charge of 5.75% 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 C CDSC of 1.00% 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 the first year - 5%, second
year - 4%, third year - 4%, fourth year - 4%, fifth year - 3%, sixth year - 2%,
seventh year - 1%, thereafter - 0%. For the class T shares, the "with sales
charge" returns include the maximum 5.75% charge. Performance for different
share classes will vary based on differences in sales charges and fees
associated with each class.
Performance results reflect any 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.
The returns for class A and class B shares include the returns of Prime A Shares
(for class A shares) and Prime B Shares (for class B shares) of the Galaxy Fund
for periods prior to November 18, 2002, the date on which class A and class B
shares were initially offered by the Fund. The returns shown for class A shares
and class B shares also include the returns of Retail A Shares of the Galaxy
Fund (adjusted, as necessary, to reflect the sales charge applicable to class A
shares and class B shares, respectively) for periods prior to the date of
inception of Prime A and Prime B Shares (November 1, 1998). Class A and class B
shares generally would have had substantially similar returns to Retail A Shares
because they would have been invested in the same portfolio of securities,
although returns would have been lower to the extent that expenses for class A
and class B shares exceed expenses paid by Retail A Shares. The returns shown
for class C shares include the returns of Prime B Shares of the Galaxy Fund
(adjusted to reflect the sales charge applicable to class C shares) for periods
prior to November 18, 2002, the date on which class C shares were initially
offered by the Fund. The returns shown for class C shares also include the
returns of Retail A Shares of the Galaxy Fund (adjusted to reflect the sales
charges applicable to class C shares) for periods prior to the date of inception
of Prime B Shares (November 1, 1998). Class C shares generally would have had
substantially similar returns because they would have been invested in the same
portfolio of securities, although the returns would have been lower to the
extent that expenses for class C shares exceed expenses paid by Retail A and
Prime B Shares. The returns for class G and class T shares include the returns
of Retail A Shares (for class T shares) and Retail B Shares (for class G shares)
of the Galaxy Fund for periods prior to November 18, 2002, the date on which
class T and class G shares were initially offered by the Fund. The returns shown
for class G shares also include the returns of Retail A Shares (adjusted to
reflect the sales charges applicable to class T and class G shares) for periods
prior to the inception of Retail B Shares of the Galaxy Fund (November 1, 1998).
Retail A Shares of the Galaxy Fund were initially offered on December 30, 1991.
Class G shares generally would have had substantially similar returns to Retail
A Shares because they would have been invested in the same portfolio of
securities, although the returns would have been lower to the extent that
expenses for class G shares exceed expenses paid by Retail A Shares. The returns
for class Z shares include returns of Trust Shares of the Galaxy Fund for
periods prior to November 18, 2002, the date on which class Z shares were
initially offered by the Fund.
11
SUMMARY
o FOR THE SIX-MONTH PERIOD THAT ENDED MARCH 31, 2004, THE FUND'S CLASS A
SHARES RETURNED 19.51% WITHOUT SALES CHARGE.
o THE FUND'S RETURN WAS BEHIND THAT OF ITS BENCHMARKS, THE MSCI ALL COUNTRY
WORLD EX U.S. INDEX AND THE MSCI EAFE INDEX. IT ALSO UNDERPERFORMED ITS PEER
GROUP, THE MORNINGSTAR(R) FOREIGN LARGE GROWTH CATEGORY.
o THE FUND'S DOUBLE-DIGIT RETURN RESULTED FROM ITS EMPHASIS ON COMPANIES THAT
HAVE THE POTENTIAL TO BENEFIT FROM A PICKUP IN BOTH CONSUMER AND BUSINESS
SPENDING. AN UNDERWEIGHT POSITION IN MEXICO AND KOREA HELD BACK RELATIVE
PERFORMANCE.
[Three up arrows]
MSCI ALL
COUNTRY
CLASS A WORLD EX U.S. MSCI EAFE
SHARES INDEX INDEX
19.51% 22.75% 22.16%
OBJECTIVE
Seeks long-term capital
appreciation.
TOTAL NET ASSETS
$502.5 million
NET ASSET VALUE PER SHARE
AS OF 03/31/04 ($)
Class A 12.89
Class B 12.80
Class C 12.73
Class G 12.70
Class T 12.86
Class Z 13.09
DISTRIBUTIONS DECLARED PER SHARE
10/01/03 - 03/31/04 ($)
Class A 0.05
Class B 0.00
Class C 0.00
Class G 0.00
Class T 0.01
Class Z 0.09
PORTFOLIO MANAGER'S REPORT______________________________________________________
Columbia International Equity Fund
For the six-month period ended March 31, 2004, Columbia International Equity
Fund class A shares returned 19.51% without sales charge. The fund's return fell
short of its benchmarks. The MSCI All Country World ex U.S. Index returned
22.75% for the period and the MSCI EAFE Index returned 22.16%. The fund also
trailed the average return of the Morningstar(R) Foreign Large Growth Category,
which was 20.22%.1 The fund's underweight in the emerging markets of Mexico and
Korea, which made strong gains during the period, was responsible for the
performance shortfall.
INCREASING INVESTMENTS IN JAPAN BENEFITED RESULTS
We added to our position in Japan, as the economy improved and the market moved
ahead. The best performance for the period came mostly from businesses that tend
to benefit from a pickup in domestic consumption, such as investments in UFJ
Holdings, a large bank, Millea Holdings, an insurance company, and Mitsubishi
Estates, a real estate company, aided total return. Retailers benefited from an
increase in consumer spending. Aoyama Trading, a specialty men's retailer,
contributed to positive performance. However, a strong yen caused some of
Japan's biggest exporters to lose ground. A strong yen made Japanese products
more expensive abroad.
A MORE CAUTIOUS STRATEGY IN ASIA
We reduced the fund's exposure to India, Taiwan and Hong Kong which were strong
performers in 2003. Valuations in these markets were high, and we found better
opportunities elsewhere, particularly in Japan. A change in economic policy in
China also was instrumental in our decision. Chinese policy makers have taken
steps to curb the country's extraordinary economic growth. China has been an
engine of growth for all of Asia, and we believe that a slower economy could
hurt other countries that depend on this vast country as an export market.
We retained a substantial commitment of the fund's assets in Thailand. The
country has continued to benefit from robust economic growth, and its stock
valuations remain attractive. In Thailand, PTT Public, a fully integrated oil
company, contributed to performance.
1 (C)2004, Morningstar, Inc. All rights reserved. The information contained
herein is the proprietary information of Morningstar, Inc., may not be
copied or redistributed for any purpose and may only be used for
noncommercial, personal purposes. The information contained herein is not
represented or warranted to be accurate, correct, complete or timely.
Morningstar, Inc. shall not be responsible for investment decisions, damages
or other losses resulting from the use of this information. Past performance
is no guarantee of future performance. Morningstar, Inc. has not granted
consent for it to be considered or deemed an "expert" under the Securities
Act of 1933.
12
TOP 5 SECTORS AS OF 03/31/04 (%)
Financials 23.9
Consumer discretionary 16.5
Information technology 10.3
Energy 8.8
Health care 8.4
TOP 10 HOLDINGS AS OF 03/31/04 (%)
BP PLC 3.0
ENI S.p.A. 2.3
Mitsubishi Estates 2.1
Vodafone Group 1.9
Samsung Electronics 1.9
Millea Holdings 1.8
Smith & Nephew 1.7
UFJ Holdings 1.6
GlaxoSmithKline 1.5
Reckitt Benckiser PLC 1.5
TOP 5 COUNTRIES AS OF 03/31/04 (%)
Japan 25.8
United Kingdom 22.1
France 7.7
Germany 6.0
Switzerland 4.5
HOLDINGS DISCUSSED IN THIS REPORT
AS OF 03/31/04 (%)
Mitsubishi Estate 2.1
Millea Holdings 1.8
UFJ Holdings 1.6
Erste Bank 0.8
PTT Public 0.7
Alpha Bank 0.7
Aoyama Trading 0.6
Burberry Group 0.6
Public Power 0.5
Hansabank 0.5
Your fund is actively managed and the composition of its portfolio will change
over time. Sectors and holdings are calculated as a percentage of net assets and
countries are calculated as a percentage of total investments.
________________________________________________________________________________
Columbia International Equity Fund
EUROPEAN MARKETS WERE BUOYED BY BETTER ECONOMIC GROWTH
The European markets moved higher, as economic growth improved and aggressive
corporate restructuring seemed to be paying off. Our largest commitment was to
the United Kingdom (UK) where consumer and business confidence was on the rise.
There was an increase in consumer spending during the period. The fund's
investment in Burberry Group was the beneficiary of that trend. Advertising and
media companies also made a positive contribution to total return, as corporate
spending rose.
Outside the UK, we added Alpha Bank and Public Power in Greece. We also invested
in Erste Bank der oesterreichen Sparkassen in Austria. Erste Bank is a financial
institution that does 50% of its business in Eastern Europe, where the fund has
made some notable investments. For example, in Estonia, we established a
position in Hansabank. The entire Eastern European region has become
economically stronger as more countries have improved their finances in order to
join the European Union (EU).
AN OPTIMISTIC OUTLOOK FOR INTERNATIONAL MARKETS
Although global growth may slow in late 2004, we are optimistic about the
prospects for international stock markets. Because we believe that Japan is
positioned to be a leading performer, we have positioned the fund for this
possibility. We are encouraged by the expansion of the EU and believe that a
larger organization may create pressure on weaker European countries to reform
their social and economic structures. Such a move could result in reinvigorated
economies and could present more attractive investment opportunities in Europe.
[Photo of James M. McAlear]
James M. McAlear has managed or co-managed Columbia
International Equity Fund since August 2002 and has been
with the advisor and its predecessors since 1992.
/s/ James M. McAlear
There are specific risks involved when investing in foreign stocks, such as
currency exchange rate fluctuations, economic change, instability of emerging
countries and political developments.
13
PERFORMANCE OF A $10,000 INVESTMENT
04/01/94 - 03/31/04 ($)
SALES CHARGE WITHOUT WITH
------------ ------- ----
Class A 24,130 22,733
Class B 23,186 23,186
Class C 23,186 23,186
Class G 22,582 22,582
Class T 23,979 22,591
Class Z 24,734 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 Large Cap Core Fund
VALUE OF A $10,000 INVESTMENT 04/01/94 - 03/31/04
[Mountain Chart]
CLASS A CLASS A
SHARES WITHOUT SHARES WITH
SALES CHARGE SALES CHARGE S&P 500 INDEX
------------ ------------ -------------
$10000.00 $9425.00 $10000.00
10156.00 9572.00 10128.00
10429.00 9830.00 10294.00
10301.00 9709.00 10042.00
10555.00 9948.00 10371.00
10947.00 10318.00 10796.00
10778.00 10159.00 10532.00
10985.00 10354.00 10769.00
10670.00 10057.00 10377.00
10734.00 10117.00 10531.00
10983.00 10352.00 10803.00
11336.00 10684.00 11225.00
11628.00 10959.00 11556.00
11857.00 11175.00 11895.00
12296.00 11589.00 12371.00
12520.00 11800.00 12658.00
12824.00 12087.00 13079.00
12751.00 12018.00 13111.00
13188.00 12430.00 13665.00
13019.00 12271.00 13615.00
13607.00 12824.00 14213.00
13883.00 13084.00 14487.00
14187.00 13371.00 14980.00
14356.00 13530.00 15119.00
14651.00 13809.00 15264.00
14921.00 14063.00 15489.00
15203.00 14329.00 15888.00
15095.00 14227.00 15949.00
14496.00 13662.00 15244.00
14915.00 14057.00 15565.00
15487.00 14597.00 16442.00
15658.00 14757.00 16896.00
16862.00 15892.00 18173.00
16639.00 15682.00 17813.00
17448.00 16445.00 18926.00
17485.00 16479.00 19074.00
16976.00 16000.00 18290.00
17636.00 16622.00 19382.00
18708.00 17633.00 20562.00
19391.00 18276.00 21484.00
20729.00 19537.00 23194.00
20016.00 18865.00 21895.00
20919.00 19716.00 23095.00
20367.00 19195.00 22323.00
21006.00 19798.00 23357.00
21493.00 20258.00 23759.00
21418.00 20187.00 24022.00
23005.00 21682.00 25754.00
24096.00 22710.00 27073.00
24291.00 22894.00 27346.00
23706.00 22342.00 26876.00
23831.00 22461.00 27967.00
23245.00 21908.00 27671.00
19651.00 18521.00 23670.00
20612.00 19427.00 25187.00
22389.00 21102.00 27234.00
23623.00 22264.00 28885.00
24903.00 23471.00 30549.00
25207.00 23757.00 31826.00
24710.00 23289.00 30836.00
25674.00 24198.00 32069.00
26683.00 25149.00 33310.00
26699.00 25164.00 32524.00
28186.00 26565.00 34329.00
27287.00 25718.00 33258.00
26244.00 24735.00 33095.00
25205.00 23756.00 32188.00
25704.00 24226.00 34226.00
25961.00 24469.00 34921.00
26642.00 25110.00 36978.00
25701.00 24223.00 35121.00
25205.00 23756.00 34458.00
27799.00 26200.00 37827.00
27832.00 26232.00 36689.00
27712.00 26119.00 35937.00
27006.00 25453.00 36824.00
27124.00 25565.00 36250.00
28939.00 27275.00 38501.00
27605.00 26018.00 36468.00
28085.00 26470.00 36315.00
26698.00 25163.00 33453.00
27664.00 26074.00 33617.00
28782.00 27127.00 34811.00
27329.00 25757.00 31636.00
25615.00 24142.00 29630.00
27331.00 25760.00 31933.00
27687.00 26095.00 32147.00
27083.00 25526.00 31365.00
27121.00 25561.00 31058.00
25646.00 24171.00 29114.00
23386.00 22041.00 26761.00
23779.00 22412.00 27272.00
25572.00 24102.00 29364.00
26050.00 24552.00 29623.00
24873.00 23443.00 29190.00
24507.00 23098.00 28627.00
25507.00 24040.00 29703.00
24155.00 22766.00 27903.00
24503.00 23094.00 27697.00
22459.00 21168.00 25725.00
20838.00 19640.00 23721.00
20665.00 19477.00 23875.00
18191.00 17145.00 21280.00
19466.00 18347.00 23152.00
20679.00 19490.00 24516.00
19544.00 18420.00 23077.00
19216.00 18111.00 22472.00
18655.00 17582.00 22135.00
18845.00 17761.00 22350.00
20260.00 19095.00 24192.00
21287.00 20063.00 25466.00
21398.00 20168.00 25792.00
21747.00 20496.00 26246.00
22232.00 20953.00 26758.00
21767.00 20515.00 26475.00
22853.00 21539.00 27973.00
23143.00 21813.00 28219.00
23872.00 22500.00 29698.00
24085.00 22700.00 30244.00
24338.00 22938.00 30665.00
24130.00 22733.00 30191.00
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
and Poor's (S&P) 500 Index is an unmanaged index that tracks the performance of
500 widely held, large-capitalization US stocks. Unlike the fund, indices are
not investments, do not incur fees 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 03/31/04 (%)
SHARE CLASS A B C G T Z
- -------------------------------------------------------------------------------------------------------------------------
INCEPTION 11/01/98 11/01/98 12/09/02 03/04/96 02/12/93 12/14/92
- -------------------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- -------------------------------------------------------------------------------------------------------------------------
6-month (cumulative) 10.83 4.50 10.46 5.46 10.46 9.46 10.47 5.47 10.85 4.50 11.02
- -------------------------------------------------------------------------------------------------------------------------
1-year 28.01 20.69 27.25 22.25 27.12 26.12 27.03 22.03 28.15 20.78 28.57
- -------------------------------------------------------------------------------------------------------------------------
5-year -1.24 -2.40 -1.96 -2.29 -1.96 -1.96 -2.06 -2.56 -1.33 -2.50 -1.00
- -------------------------------------------------------------------------------------------------------------------------
10-year 9.21 8.56 8.77 8.77 8.77 8.77 8.49 8.49 9.14 8.49 9.48
All results shown assume reinvestment of distributions. The "with sales charge
"returns include the maximum initial sales charge of 5.75% 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 C CDSC of 1.00% 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 initial sales charge of 5.75%. 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.
The returns for class A and class B shares include the returns of Prime A Shares
(for class A shares) and Prime B Shares (for class B shares) of the Galaxy Fund
for periods prior to December 9, 2002, the date on which class A and class B
shares were initially offered by the Fund. The returns shown for class A shares
and class B shares also include the returns of Retail A Shares of the Galaxy
Fund (adjusted to reflect the sales charge applicable to class A shares and
class B shares, respectively) for periods prior to the inception of Prime A and
Prime B Shares (November 1, 1998). Class A and class B shares generally would
have had substantially similar returns to Retail A Shares because they would
have been invested in the same portfolio of securities, although the returns
would have been lower to the extent that expenses for class A and class B shares
exceed expenses paid by Retail A Shares. The returns shown for class C shares
include the returns of Prime B Shares of the Galaxy Fund (adjusted to reflect
the sales charge applicable to class C shares) for periods prior to December 9,
2002, the date on which class C shares were initially offered. The returns shown
for class C shares also include the returns of Retail A Shares of the Galaxy
Fund (adjusted to reflect the sales charges applicable to class C shares) for
periods prior to the inception of Prime B Shares (November 1, 1998). Class C
shares generally would have had substantially similar returns to Retail A and
Prime B Shares because they would have been invested in the same portfolio of
securities, although the returns would have been lower to the extent that
expenses for class C shares exceed expenses paid by Retail A and Prime B Shares.
Retail A Shares were initially offered on February 12, 1993. The returns for
class G and class T shares include the returns of Retail A Shares (for class T
shares) and Retail B Shares (for class G shares) of the Galaxy Fund for periods
prior to December 9, 2002, the date on which class T and class G shares were
initially offered by the Fund. The returns shown for class G shares also include
the returns of Retail A Shares for periods prior to the inception of Retail B
Shares of the Galaxy Fund (March 4, 1996). Retail A Shares were initially
offered on February 12, 1993. Class G shares generally would have had
substantially similar returns to Retail A Shares because they would have been
invested in the same portfolio of securities, although the returns would have
been lower to the extent that expenses for class G shares exceed expenses paid
by Retail A Shares. The returns for class Z shares include returns of Trust
Shares of the Galaxy Fund for periods prior to December 9, 2002, the date on
which class Z shares were initially offered by the Fund, and returns of Trust
Shares of the Shawmut Fund (whose shares were initially offered on December 14,
1992), for periods prior to December 14, 1995.
14
Summary
o FOR THE SIX-MONTH PERIOD THAT ENDED MARCH 31, 2004, THE FUND'S CLASS A
SHARES RETURNED 10.83% WITHOUT SALES CHARGE.
o THE FUND UNDERPERFORMED BOTH ITS BENCHMARK, THE S&P 500 INDEX, AND THE
AVERAGE RETURN OF ITS PEER GROUP, THE MORNINGSTAR(R) LARGE BLEND CATEGORY.
o STOCK SELECTION IN HEALTH CARE AND CERTAIN CONSUMER-RELATED INDUSTRIES
HELPED THE FUND TO A DOUBLE-DIGIT RETURN. HOWEVER, IT TRAILED ITS BENCHMARK
BECAUSE IT FOCUSED ON HIGH-QUALITY LARGE-CAP STOCKS, WHICH UNDERPERFORMED
SPECULATIVE STOCKS DURING THE PERIOD.
[TWO UP ARROWS]
CLASS A SHARES S&P 500 INDEX
10.83% 14.08%
Objective
Seeks to provide a relatively
high total return through
long-term capital appreciation
and current income.
Total net assets
$433.1 million
NET ASSET VALUE PER SHARE
as of 03/31/04 ($)
Class A 12.43
Class B 12.14
Class C 12.14
Class G 12.03
Class T 12.39
Class Z 12.47
DISTRIBUTIONS DECLARED PER SHARE
10/01/03 - 03/31/04 ($)
Class A 0.01
Class B 0.00
Class C 0.00
Class G 0.00
Class T 0.00
Class Z 0.02
PORTFOLIO MANAGERS' REPORT______________________________________________________
Columbia Large Cap Core Fund
For the six-month period ended March 31, 2004, class A shares of Columbia Large
Cap Core Fund returned 10.83% without sales charge. It underperformed both the
S&P 500 Index, which returned 14.08%, and the average return of the
Morningstar(R) Large Blend Category, which was 13.54% during the same period.1
Stock selection in health care and certain consumer-related industries
contributed to the fund's double-digit return. However, speculative stocks
performed better than the higher-quality large-cap stocks that the fund
emphasizes and accounted for the performance shortfall relative to its
benchmark.
SPECULATIVE STOCKS LOSE MOMENTUM LATE IN THE PERIOD
Most of the strength in speculative stocks occurred prior to the January
announcement from the Federal Reserve Board that the fed funds rate may be
revised sooner rather than later. In the wake of this announcement, speculative
names lost some momentum. The performance gap between them and the
higher-quality companies emphasized in the fund narrowed as the period ended.
POSITIONED FOR ECONOMIC GROWTH AND MODEST INFLATION
During the period, we favored stocks that stand to benefit from a strengthening
economy. At the beginning of the period, we emphasized retail stocks within the
consumer discretionary sector as a way to gain exposure to economic growth. That
strategy was successful in generating solid returns for the fund, although these
holdings lost some ground in the final months of the period.
In December, we began to shift our emphasis to media companies within consumer
discretionary. This move did not result in a gain for the fund during the
reporting period. Still, our enthusiasm for media stocks is driven by an
expectation that three strong trends should result in an increase in corporate
advertising--the key to revenue and profit growth for media companies: 1) an
overall increase in business spending, 2) a presidential election and 3) the
2004 summer Olympics. Historically, the combination of a presidential election
and an Olympics in the same year has provided a strong tailwind for television
advertising. In fact, television ad revenue has easily outpaced GDP in every
instance that those two events occurred in the same year.
1 (C) 2004, Morningstar, Inc. All rights reserved. The information contained
herein is the proprietary information of Morningstar, Inc., may not be
copied or redistributed for any purpose and may only be used for
noncommercial, personal purposes. The information contained herein is not
represented or warranted to be accurate, correct, complete or timely.
Morningstar, Inc. shall not be responsible for investment decisions,
damages or other losses resulting from the use of this information. Past
performance is no guarantee of future performance. Morningstar, Inc. has
not granted consent for it to be considered or deemed an "expert" under the
Securities Act of 1933.
15
TOP 5 SECTORS AS OF 03/31/04 (%)
Information technology 20.1
Financials 20.0
Health care 14.3
Consumer discretionary 13.9
Industrials 11.6
TOP 10 HOLDINGS AS OF 03/31/04 (%)
Pfizer 4.1
Microsoft 3.7
PepsiCo 2.9
Viacom 2.8
United Technologies 2.2
Procter & Gamble 2.2
Lexmark International 2.1
Cisco Systems 2.1
Exxon Mobil 2.1
Merrill Lynch 2.0
HOLDINGS DISCUSSED IN THIS REPORT
as of 03/31/04 (%)
PepsiCo 2.9
Lexmark International 2.1
Accenture 1.7
Avon Products 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 Large Cap Core Fund
BALANCING VOLATILITY IN THE TECHNOLOGY SECTOR
In the technology sector, we emphasized semiconductor companies. Semiconductor
stocks pulled back after strong performance early in the period, but we have
maintained our relatively large investment in semiconductors because we believe
that its cycle is not yet over. We balanced our semiconductor investments with
less volatile technology investments such as Lexmark International, which makes
toner cartridges for printers, and Accenture, a consulting company. Both
companies have steady revenue streams and the potential for continued strong
earnings growth. They added to total return for the period.
STOCK SELECTION IN HEALTH CARE AND CONSUMER STAPLES WAS FAVORABLE
The fund's health care and consumer staples positions were the largest positive
contributors to performance. In health care, we continue to believe that patent
expiration, the threat of increased regulation and ongoing pressure on corporate
expenses are negative factors for large pharmaceutical companies. As a result,
we avoided them and emphasized companies in the managed care, pharmaceutical
benefit management and generic drug industries. In consumer staples, the fund
benefited from its investments in PepsiCo and Avon Products.
AN EMPHASIS ON QUALITY AND RISK MANAGEMENT
Because managing risk is an important part of our investment strategy, we have
structured a portfolio that has the potential to benefit from the market's
upside potential and should be less affected by market declines. We continue to
emphasize high-quality companies with stable balance sheets and the potential
for consistent earnings growth. In our opinion, such companies could be market
leaders over the long term.
Sean P. Wilson, CFA, has co-managed Columbia Large Cap
Core Fund since October 2003 and has been with the
advisor since June 2003.
/s/ Sean P. Wilson]
Michael R. Pelosi, CFA, has co-managed the fund since
October 2003 and has been with the advisor and its
predecessors since 1986.
/s/ Michael R. Pelosi]
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.
16
PERFORMANCE OF A $10,000 INVESTMENT
04/01/94 - 03/31/04 ($)
SALES CHARGE WITHOUT WITH
------------ ------- ----
Class A 43,166 40,669
Class B 41,352 41,352
Class C 41,375 41,375
Class G 41,081 41,081
Class T 42,670 40,202
Class Z 44,332 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 Small Cap Fund
VALUE OF A $10,000 INVESTMENT 04/01/94 - 03/31/04
[Mountain Chart]
CLASS A CLASS A
SHARES WITHOUT SHARES WITH S&P SMALL CAP RUSSELL 2000
SALES CHARGE SALES CHARGE 600 INDEX INDEX
------------ ------------ ------------- -----
$10000.00 $9425.00 $10000.00 $10000.00
9953.00 9381.00 10150.00 10059.00
10000.00 9425.00 9949.00 9946.00
9792.00 9229.00 9579.00 9608.00
9896.00 9327.00 9698.00 9766.00
10359.00 9763.00 10358.00 10310.00
10396.00 9798.00 10304.00 10276.00
10443.00 9842.00 10201.00 10236.00
10160.00 9576.00 9812.00 9822.00
10287.00 9695.00 10050.00 10086.00
10287.00 9695.00 9908.00 9959.00
10567.00 9959.00 10316.00 10374.00
10746.00 10128.00 10526.00 10552.00
11026.00 10392.00 10762.00 10786.00
11325.00 10674.00 10930.00 10972.00
11885.00 11202.00 11530.00 11541.00
12434.00 11719.00 12412.00 12206.00
12704.00 11973.00 12681.00 12459.00
13033.00 12284.00 13004.00 12682.00
12663.00 11935.00 12362.00 12115.00
13150.00 12394.00 12851.00 12624.00
13525.00 12747.00 13063.00 12957.00
13355.00 12587.00 13092.00 12943.00
13803.00 13010.00 13520.00 13346.00
14204.00 13387.00 13810.00 13619.00
15081.00 14214.00 14602.00 14347.00
15649.00 14749.00 15121.00 14912.00
15253.00 14376.00 14528.00 14300.00
14374.00 13548.00 13528.00 13051.00
15103.00 14234.00 14366.00 13810.00
15746.00 14841.00 14997.00 14349.00
15800.00 14891.00 14893.00 14128.00
16463.00 15517.00 15666.00 14711.00
17140.00 16154.00 15849.00 15096.00
17389.00 16389.00 16112.00 15398.00
17326.00 16330.00 15779.00 15025.00
16756.00 15792.00 14969.00 14316.00
16582.00 15628.00 15152.00 14356.00
18331.00 17277.00 16931.00 15953.00
19533.00 18410.00 17679.00 16637.00
20885.00 19684.00 18791.00 17411.00
21531.00 20293.00 19265.00 17809.00
23180.00 21847.00 20538.00 19113.00
22684.00 21379.00 19651.00 18274.00
22461.00 21170.00 19507.00 18155.00
22493.00 21200.00 19902.00 18473.00
22113.00 20841.00 19513.00 18181.00
23386.00 22042.00 21291.00 19524.00
24862.00 23433.00 22104.00 20329.00
24979.00 23543.00 22235.00 20441.00
23675.00 22314.00 21059.00 19339.00
23031.00 21707.00 21120.00 19380.00
21506.00 20270.00 19504.00 17810.00
18575.00 17507.00 15740.00 14351.00
19363.00 18249.00 16703.00 15475.00
19847.00 18706.00 17478.00 16106.00
20815.00 19618.00 18462.00 16950.00
21284.00 20060.00 19642.00 17999.00
21396.00 20166.00 19394.00 18239.00
20155.00 18997.00 17647.00 16761.00
19644.00 18514.00 17875.00 17023.00
21032.00 19823.00 19056.00 18548.00
21806.00 20552.00 19519.00 18819.00
22879.00 21564.00 20630.00 19670.00
22927.00 21609.00 20448.00 19131.00
21973.00 20710.00 19548.00 18423.00
21930.00 20669.00 19631.00 18426.00
21090.00 19877.00 19582.00 18502.00
22011.00 20746.00 20400.00 19607.00
23563.00 22208.00 22077.00 21826.00
23276.00 21937.00 21393.00 21475.00
23743.00 22378.00 24257.00 25020.00
24570.00 23157.00 23359.00 23371.00
24479.00 23071.00 22960.00 21964.00
24354.00 22954.00 22280.00 20684.00
24812.00 23385.00 23597.00 22487.00
24435.00 23030.00 23019.00 21763.00
25891.00 24402.00 25059.00 23424.00
26326.00 24812.00 24377.00 22735.00
25786.00 24304.00 24531.00 21721.00
25049.00 23608.00 21977.00 19490.00
27569.00 25983.00 24684.00 21165.00
28335.00 26706.00 25743.00 22267.00
28584.00 26941.00 24173.00 20807.00
28210.00 26588.00 23064.00 19789.00
29493.00 27798.00 24821.00 21337.00
30797.00 29026.00 25295.00 21862.00
31672.00 29851.00 26221.00 22616.00
31197.00 29403.00 25783.00 21392.00
31031.00 29247.00 25195.00 20701.00
28254.00 26629.00 21789.00 17915.00
29104.00 27431.00 22950.00 18963.00
30659.00 28896.00 24630.00 20431.00
32651.00 30774.00 26297.00 21691.00
32720.00 30839.00 26526.00 21466.00
33355.00 31437.00 26070.00 20878.00
35933.00 33867.00 28130.00 22554.00
36634.00 34527.00 28926.00 22759.00
35908.00 33844.00 27728.00 21749.00
35208.00 33184.00 26295.00 20670.00
30571.00 28813.00 22582.00 17549.00
30412.00 28664.00 22796.00 17505.00
28940.00 27276.00 21401.00 16248.00
28602.00 26957.00 22086.00 16770.00
30389.00 28642.00 23237.00 18266.00
29830.00 28115.00 22451.00 17248.00
29070.00 27398.00 21679.00 16770.00
28238.00 26614.00 20985.00 16264.00
28261.00 26636.00 21151.00 16474.00
30377.00 28631.00 22868.00 18035.00
33017.00 31119.00 24712.00 19971.00
33803.00 31859.00 25354.00 20332.00
35612.00 33564.00 26673.00 21605.00
36943.00 34819.00 27971.00 22594.00
36397.00 34304.00 27149.00 22176.00
38941.00 36702.00 29503.00 24039.00
40129.00 37821.00 30618.00 24893.00
41405.00 39024.00 31160.00 25398.00
42237.00 39808.00 32058.00 26500.00
42849.00 40385.00 32673.00 26739.00
43166.00 40669.00 33095.00 26988.00
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 index that tracks the performance of the 2,000
smallest of the 3,000 largest U.S. companies based on market capitalization. The
Standard & Poor's SmallCap 600 Composite Index (S&P SmallCap 600 Index) is an
unmanaged index that tracks the performance of 600 domestic companies traded on
the New York Stock Exchange, the American Stock Exchange and NASDAQ. 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 03/31/04 (%)
SHARE CLASS A B C G T Z
- -------------------------------------------------------------------------------------------------------------------------
INCEPTION 11/01/98 11/01/98 11/18/02 11/01/98 02/12/93 12/14/92
- -------------------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- -------------------------------------------------------------------------------------------------------------------------
6-month (cumulative) 18.60 11.81 18.28 13.28 18.18 17.18 18.22 13.22 18.61 11.82 18.78
- -------------------------------------------------------------------------------------------------------------------------
1-year 52.75 44.02 51.57 46.57 51.52 50.52 51.59 46.59 52.64 43.85 53.06
- -------------------------------------------------------------------------------------------------------------------------
5-year 17.05 15.68 16.12 15.90 16.13 16.13 15.96 15.63 16.88 15.50 17.39
- -------------------------------------------------------------------------------------------------------------------------
10-year 15.75 15.06 15.25 15.25 15.26 15.26 15.18 15.18 15.61 14.93 16.06
All results shown assume reinvestment of distributions. The "with sales charge"
returns include the maximum initial sales charge of 5.75% 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 C CDSC of 1.00% 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 initial sales charge of 5.75%. 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.
Prior to November 18, 2002, the fund was named Galaxy Small Cap Value Fund, and
offered Retail A, Retail B, Trust, Prime A and Prime B share classes. On that
day, the fund changed its name to Liberty Small Cap Fund and began offering
class A, B, C, G, T and Z shares. The returns for class A and B shares include
returns of Prime A shares and Retail A shares (for class A shares) and Prime B
shares and Retail A shares (for class B shares) of the former Galaxy fund for
periods prior to the inception of class A and class B shares. Class C share
performance information includes returns of Retail B shares and Retail A shares
of the former Galaxy fund for periods prior to the inception of class C shares.
The returns for class G and T shares include the returns of Retail A Shares (for
class T shares) and Retail B Shares (for class G shares) of the Galaxy Fund for
periods prior to the date of this prospectus. The returns shown for class G
shares also include the returns of Retail A Shares (adjusted to reflect the
sales charges applicable to class G shares) for periods prior to the inception
of Retail B Shares of the Galaxy Fund (November 1, 1998). Retail A Shares were
initially offered on February 12, 1993. Class G shares generally would have had
substantially similar returns because they would have been invested in the same
portfolio of securities, although the returns would be lower to the extent that
expenses for class G shares exceed expenses paid by Retail A Shares. The returns
for class Z shares include the returns of Trust Shares of the Galaxy Small Cap
Value Fund (the "Galaxy Fund"), for periods prior to the date of this
prospectus, and returns of Trust shares of the Small Cap portfolio of The
Shawmut Funds (the "Shawmut Fund"), the predecessor to the Galaxy Fund, for
periods prior to December 4, 1995. Total returns are not restated to reflect
any expense differential (e.g. Rule 12b-1 fees) between any of the share classes
Had the expense differential been reflected, the returns for the periods prior
to the inception of class A, B and C shares would have been lower.
17
Summary
o FOR THE SIX-MONTH PERIOD THAT ENDED MARCH 31, 2004, THE FUND'S CLASS A
SHARES RETURNED 18.60% WITHOUT SALES CHARGE.
o THE FUND TRAILED BOTH ITS BENCHMARKS, THE RUSSELL 2000 INDEX AND THE S&P
SMALLCAP 600 INDEX. IT ALSO CAME OUT BEHIND ITS PEER GROUP, THE
MORNINGSTAR(R) SMALL BLEND CATEGORY.
o ALTHOUGH THE FUND DELIVERED AN ATTRACTIVE, DOUBLE-DIGIT RETURN, AN
UNDERWEIGHT IN TECHNOLOGY, A BIAS TOWARD LESS SPECULATIVE NAMES AND A LARGE
CASH POSITION HURT THE FUND'S RETURN RELATIVE TO ITS BENCHMARK AND PEER
GROUP.
[Three up arrows]
S&P
CLASS A RUSSELL 2000 SMALLCAP
SHARES INDEX 600 INDEX
18.60% 21.69% 21.91%
Objective
Seeks long-term capital appreciation.
Total net assets
$1,581.5 million
NET ASSET VALUE PER SHARE
AS of 03/31/04 ($)
Class A 17.67
Class B 17.08
Class C 17.09
Class G 16.93
Class T 17.53
Class Z 17.83
DISTRIBUTIONS DECLARED PER SHARE
10/01/03 - 03/31/04 ($)
Class A 0.44
Class B 0.34
Class C 0.34
Class G 0.34
Class T 0.42
Class Z 0.49
PORTFOLIO MANAGER'S REPORT______________________________________________________
Columbia Small Cap Fund
For the six-month period ended March 31, 2004, Columbia Small Cap Fund class A
shares returned 18.60% without sales charge. It trailed both the Russell 2000
Index and the S&P SmallCap 600 Index, which returned 21.69% and 21.91%,
respectively. The fund also fell behind the 21.59% average return of its peer
group, the Morningstar(R) Small Blend Category.1
LOW TECHNOLOGY STAKE AND LARGE CASH POSITION HURT RETURN
Despite strong gains from many sectors, the fund's relative performance suffered
from a below-average technology stake, a bias toward less speculative names and
a large cash position. Cash built up as new money poured in and as we trimmed
stocks that had appreciated. With small-cap stocks rallying sharply, we found it
harder to find decent quality companies whose stocks were attractively priced.
To alleviate some of these pressures, the Trustees voted to close the fund to
new investors and new accounts effective March 1.
PATIENCE REWARDED WITH STRONG GAINS
Some of the fund's biggest gains came from stocks that we bought when they were
out of favor and then held for some time. In the industrial sector, standouts
included Armor Holdings, which makes armor for vehicles as well as bulletproof
vests for military and law enforcement personnel. The stock benefited from
rising demand related to the conflict in Iraq. Terex, a construction equipment
company, and Reliance Steel & Aluminum, both of which had languished when the
economy was weak, also rebounded nicely as the recovery got underway.
The fund's sizable stake in consumer discretionary stocks, which included
restaurants, retailers and media companies, also helped performance. Mainstream
retailers with strong financial characteristics, including American Eagle
Outfitters and Buckle, benefited from improved earnings. Rayovac, which makes
batteries, also did well as investors began seeing the value of recent
acquisitions and as earnings picked up.
MORE MIXED RESULTS FROM HEALTH CARE AND TECHNOLOGY
Many of the fund's health care investments contributed positively to
performance. Valeant Pharmaceuticals International, a specialty drug company
that we have owned for years, rebounded as the company's
1 (C)2004, Morningstar, Inc. All rights reserved. The information contained
herein is the proprietary information of Morningstar, Inc., may not be
copied or redistributed for any purpose and may only be used for
noncommercial, personal purposes. The information contained herein is not
represented or warranted to be accurate, correct, complete or timely.
Morningstar, Inc. shall not be responsible for investment decisions,
damages or other losses resulting from the use of this information. Past
performance is no guarantee of future performance. Morningstar, Inc. has
not granted consent for it to be considered or deemed an "expert" under the
Securities Act of 1933.
18
TOP 5 SECTORS AS OF 03/31/04 (%)
Consumer discretionary 21.9
Industrials 17.3
Health care 12.4
Information technology 11.8
Financials 8.2
TOP 10 HOLDINGS AS OF 03/31/04 (%)
iShares Russell 2000 Index 2.9
Invacare 1.3
Benchmark Electronics 1.1
Albany International 1.0
Armor Holdings 1.0
Unifirst 0.8
Greif 0.8
Valeant Pharmaceuticals International 0.8
West Pharmaceutical Services 0.7
ADVO 0.7
HOLDINGS DISCUSSED IN THIS REPORT
AS OF 03/31/04 (%)
Armor Holdings 1.0
Albany International 1.0
Valeant Pharmaceuticals International 0.8
Reliance Steel & Aluminum 0.7
Res-Care 0.7
Buckle 0.6
Rayovac 0.6
Thoratec 0.6
Terex 0.5
American Eagle Outfitters 0.5
Fairchild Semiconductor International 0.4
Cray 0.3
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 Fund
second-generation Hepatitis C drug showed positive results in trials. Res-Care,
which runs group homes for developmentally disabled people, adapted to
disappointing revenue growth by paying down debt. Earnings and cash flows
improved, sending the stock price higher. By contrast, Thoratec, a company that
makes medical devices to prolong the lives of patients waiting for heart
transplants, tumbled as investors worried about insurance reimbursement issues.
Our disciplined focus on valuation and quality meant that we did not have a
market weight in technology. Nor did we own many of the more speculative and
better performing stocks. The fund, however, benefited from owning Fairchild
Semiconductor International, a well-run semiconductor manufacturer that rallied
sharply as the economy improved. Cray, a supercomputer manufacturer, was a new
addition to the portfolio. It declined amid news of a delayed product launch.
Elsewhere, Albany International--a paper products and services company--suffered
from slower-than-expected revenue and earnings growth.
GOOD OPPORTUNITIES FOR STOCK PICKERS
By period end, stock prices reflected expectations for meaningful earnings
improvements. We think companies that can deliver on earnings expectations
should be winners, but those that cannot may suffer. Depending on what happens
to earnings overall, we think the market could remain volatile or even pull
back. We plan to maintain a selective approach that focuses on buying
well-managed, profitable companies when their stocks are selling at attractive
prices.
[Photo of Peter Larson]
Peter Larson has managed Columbia Small Cap Fund since
1992 and has been with the advisor and its
predecessors since 1963.
/s/ Peter Larson
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.
19
PERFORMANCE OF A $10,000 INVESTMENT
04/01/94 - 03/31/04 ($)
SALES CHARGE WITHOUT WITH
------------ ------- ----
Class A 23,216 21,884
Class B 21,948 21,948
Class C 21,895 21,895
Class G 21,908 21,908
Class T 23,202 21,872
Class Z 24,233 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 Small Company Equity Fund
VALUE OF A $10,000 INVESTMENT 04/01/94 - 03/31/04
[Mountain Chart]
CLASS A CLASS A
SHARES WITHOUT SHARES WITH RUSSELL 2000 RUSSELL 2000
SALES CHARGE SALES CHARGE GROWTH INDEX INDEX
------------ ------------ ------------ -----
$10000.00 $9425.00 $10000.00 $10000.00
9975.00 9401.00 10015.00 10059.00
9709.00 9150.00 9792.00 9946.00
9167.00 8640.00 9370.00 9608.00
9275.00 8742.00 9504.00 9766.00
9900.00 9331.00 10202.00 10310.00
10042.00 9464.00 10246.00 10276.00
10292.00 9700.00 10357.00 10236.00
9958.00 9386.00 9937.00 9822.00
10302.00 9710.00 10173.00 10086.00
9989.00 9414.00 9966.00 9959.00
10395.00 9798.00 10426.00 10374.00
10929.00 10300.00 10731.00 10552.00
11259.00 10611.00 10893.00 10786.00
11360.00 10707.00 11036.00 10972.00
12335.00 11625.00 11796.00 11541.00
13445.00 12672.00 12715.00 12206.00
13555.00 12776.00 12872.00 12459.00
14173.00 13358.00 13137.00 12682.00
13792.00 12999.00 12490.00 12115.00
14291.00 13469.00 13041.00 12624.00
14298.00 13476.00 13331.00 12957.00
13989.00 13185.00 13220.00 12943.00
14923.00 14064.00 13823.00 13346.00
15642.00 14742.00 14097.00 13619.00
17439.00 16436.00 15179.00 14347.00
18124.00 17082.00 15958.00 14912.00
16908.00 15936.00 14921.00 14300.00
15547.00 14653.00 13099.00 13051.00
16497.00 15548.00 14068.00 13810.00
17568.00 16558.00 14793.00 14349.00
17097.00 16114.00 14155.00 14128.00
17148.00 16162.00 14549.00 14711.00
17277.00 16283.00 14832.00 15096.00
17939.00 16907.00 15203.00 15398.00
16179.00 15248.00 14285.00 15025.00
15168.00 14295.00 13276.00 14316.00
14691.00 13847.00 13122.00 14356.00
17249.00 16257.00 15095.00 15953.00
18193.00 17147.00 15606.00 16637.00
19175.00 18072.00 16405.00 17411.00
19748.00 18613.00 16898.00 17809.00
21342.00 20115.00 18246.00 19113.00
20360.00 19190.00 17149.00 18274.00
19523.00 18401.00 16741.00 18155.00
19727.00 18592.00 16751.00 18473.00
19253.00 18146.00 16529.00 18181.00
20861.00 19661.00 17988.00 19524.00
21754.00 20503.00 18742.00 20329.00
21477.00 20242.00 18856.00 20441.00
19967.00 18819.00 17485.00 19339.00
19714.00 18580.00 17664.00 19380.00
17951.00 16919.00 16189.00 17810.00
13514.00 12737.00 12452.00 14351.00
14979.00 14117.00 13715.00 15475.00
15012.00 14149.00 14431.00 16106.00
16014.00 15094.00 15551.00 16950.00
17568.00 16558.00 16958.00 17999.00
17756.00 16735.00 17721.00 18239.00
15222.00 14347.00 16100.00 16761.00
14902.00 14046.00 16673.00 17023.00
15266.00 14388.00 18145.00 18548.00
15773.00 14866.00 18174.00 18819.00
17062.00 16080.00 19132.00 19670.00
16797.00 15831.00 18541.00 19131.00
16500.00 15551.00 17847.00 18423.00
16940.00 15966.00 18192.00 18426.00
17249.00 16257.00 18657.00 18502.00
20079.00 18925.00 20629.00 19607.00
24408.00 23005.00 24266.00 21826.00
24189.00 22798.00 24041.00 21475.00
29960.00 28237.00 29635.00 25020.00
29873.00 28155.00 26520.00 23371.00
26007.00 24512.00 23842.00 21964.00
24489.00 23081.00 21753.00 20684.00
27310.00 25739.00 24564.00 22487.00
24601.00 23186.00 22459.00 21763.00
26925.00 25377.00 24821.00 23424.00
25889.00 24400.00 23588.00 22735.00
23960.00 22582.00 21672.00 21721.00
21097.00 19884.00 17737.00 19490.00
23074.00 21747.00 18822.00 21165.00
24444.00 23039.00 20345.00 22267.00
22689.00 21384.00 17556.00 20807.00
21305.00 20080.00 15960.00 19789.00
22634.00 21333.00 17913.00 21337.00
23273.00 21935.00 18329.00 21862.00
24124.00 22737.00 18829.00 22616.00
23379.00 22035.00 17223.00 21392.00
22381.00 21094.00 16147.00 20701.00
18592.00 17523.00 13541.00 17915.00
19882.00 18739.00 14843.00 18963.00
21411.00 20180.00 16083.00 20431.00
23047.00 21721.00 17085.00 21691.00
22049.00 20781.00 16476.00 21466.00
20400.00 19227.00 15410.00 20878.00
22021.00 20755.00 16750.00 22554.00
21171.00 19954.00 16388.00 22759.00
19643.00 18513.00 15429.00 21749.00
18113.00 17071.00 14121.00 20670.00
15093.00 14225.00 11950.00 17549.00
15120.00 14251.00 11944.00 17505.00
14402.00 13574.00 11082.00 16248.00
14934.00 14075.00 11643.00 16770.00
16316.00 15378.00 12796.00 18266.00
15266.00 14388.00 11914.00 17248.00
14521.00 13686.00 11589.00 16770.00
14108.00 13297.00 11280.00 16264.00
14508.00 13673.00 11450.00 16474.00
15504.00 14613.00 12534.00 18035.00
17259.00 16267.00 13946.00 19971.00
17672.00 16656.00 14215.00 20332.00
18562.00 17495.00 15290.00 21605.00
19440.00 18323.00 16111.00 22594.00
18748.00 17670.00 15703.00 22176.00
20704.00 19513.00 17060.00 24039.00
21182.00 19964.00 17616.00 24893.00
21714.00 20465.00 17696.00 25398.00
22632.00 21331.00 18625.00 26500.00
22845.00 21531.00 18597.00 26739.00
23271.00 21884.00 18685.00 26988.00
All results shown assume reinvestment of distributions. The graph and the table
do not reflect the deduction of taxes that a shareholder would pay on fund
distributions or redemption of fund shares. The Russell 2000 Growth Index is an
unmanaged index that measures the performance of those Russell 2000 companies
with higher price-to-book ratios and higher forecasted growth values. The
Russell 2000 Index, also an unmanaged index, tracks the performance of the 2,000
smallest of the 3,000 largest U.S. companies, based on 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 03/31/04 (%)
SHARE CLASS A B C G T Z
- -------------------------------------------------------------------------------------------------------------------------
INCEPTION 11/18/02 11/18/02 11/18/02 03/04/96 12/30/91 12/30/91
- -------------------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- -------------------------------------------------------------------------------------------------------------------------
6-month (cumulative) 23.83 16.71 23.38 18.38 23.45 22.45 23.34 18.34 23.85 16.72 24.11
- -------------------------------------------------------------------------------------------------------------------------
1-year 60.04 50.78 58.83 53.83 58.29 57.29 58.54 53.54 60.09 50.95 60.68
- -------------------------------------------------------------------------------------------------------------------------
5-year 9.27 7.98 8.43 8.14 8.38 8.38 8.39 7.96 9.26 7.96 9.73
- -------------------------------------------------------------------------------------------------------------------------
10-year 8.79 8.15 8.18 8.18 8.15 8.15 8.16 8.16 8.78 8.14 9.25
All results shown assume reinvestment of distributions. The "with sales charge"
returns include the maximum initial sales charge of 5.75% for class A shares,
the appropriate class B contingent deferred sales charge 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 C contingent deferred sales charge of 1% for the first year only. For
class G shares, the contingent deferred sales charge for the holding period
after purchase is as follows: through the first year - 5%, second year - 4%,
third year - 4%, fourth year - 4%, fifth year - 3%, sixth year - 2%, seventh
year - 1%, thereafter - 0%. For the class T shares, the "with sales charge"
returns include the maximum 5.75% charge. Performance for different share
classes will vary based on differences in sales charges and fees associated with
each class.
Performance results reflect any voluntary waivers or reimbursement of fund
expenses by the advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower.
Class A, class B, and class C are newer classes of shares. Their performance
information includes returns of Retail A Shares (for class A shares) and Retail
B Shares (for class B and class C shares) of the Galaxy Fund for periods prior
to November 18, 2002, the date on which class A, B, and C shares were initially
offered by the Fund. The returns of class B and class C shares also include the
returns of Retail A Shares for periods prior to the inception of Retail B Shares
of the Galaxy Fund (March 4, 1996). Class B and class C shares generally would
have had substantially similar returns to Retail A Shares because they would
have been invested in the same portfolio of securities, although the returns
would be lower to the extent that expenses for class B and class C shares exceed
expenses paid by Retail A Shares. The returns have not been restated to reflect
any differences in expenses between the predecessor shares and the newer class
of shares. If differences in expenses had been reflected, the returns shown for
periods prior to the inception of the newer classes of shares would have been
lower. The returns for class G and T shares include the returns of Retail A
Shares (for class T shares) and Retail B Shares (for class G shares) of the
Galaxy Fund for periods prior to November 18, 2002, the date on which class T
and class G shares were initially offered by the Fund. The returns shown for
class G shares also include the returns of Retail A Shares (adjusted to reflect
the sales charge applicable to class G shares) for periods prior to the
inception of Retail B Shares of the Galaxy Fund (March 4, 1996). Retail A Shares
were initially offered on December 30, 1991. Class G shares generally would have
had substantially similar returns to Retail A Shares because they would have
been invested in the same portfolio of securities, although the returns would
have been lower to the extent that expenses for class G shares exceed expenses
paid by Retail A Shares. The returns for class Z shares include the returns of
Trust Shares of the Galaxy Fund for periods prior to November 18, 2002, the date
on which class Z shares were initially offered by the Fund.
20
Summary
o FOR THE SIX-MONTH PERIOD THAT ENDED MARCH 31, 2004, THE FUND'S CLASS A
HARES RETURNED 23.83% WITHOUT SALES CHARGE.
o THE FUND'S RETURN WAS HIGHER THAN THE RETURN OF ITS BENCHMARKS, THE RUSSELL
2000 GROWTH INDEX AND THE RUSSELL 2000 INDEX. IT ALSO OUTPACED ITS PEER
GROUP, THE MORNINGSTAR(R) SMALL GROWTH CATEGORY.
o STRONG STOCK SELECTION, PARTICULARLY IN THE HEALTH CARE, TECHNOLOGY AND
CONSUMER DISCRETIONARY SECTORS, FUELED PERFORMANCE. THE FUND ALSO BENEFITED
FROM ITS FOCUS ON HIGHER QUALITY STOCKS, WHICH MOVED BACK INTO INVESTOR
FAVOR DURING THE PERIOD.
[Three up arrows]
CLASS A RUSSELL 2000 RUSSELL 2000
SHARES GROWTH INDEX INDEX
23.83% 18.97% 21.69%
Objective
Seeks capital appreciation.
Total net assets
$425.5 million
NET ASSET VALUE PER SHARE
AS OF 03/31/04 ($)
Class A 17.46
Class B 16.36
Class C 16.32
Class G 16.33
Class T 17.45
Class Z 18.43
PORTFOLIO MANAGER'S REPORT______________________________________________________
Columbia Small Company Equity Fund
For the six-month period ended March 31, 2004, class A shares of Columbia Small
Company Equity Fund returned 23.83% without sales charge. The fund was ahead of
the 18.97% return of its primary benchmark, the Russell 2000 Growth Index. Fund
performance was also better than its secondary benchmark. The Russell 2000 Index
gained 21.69% during this period. In addition, the fund outpaced the
Morningstar(R) Small Growth Category average, which returned 18.11%.1 Strong
stock selection, particularly in the health care, technology and consumer
discretionary sectors, drove returns. The fund benefited as small-cap stocks
posted sharp gains and higher quality names moved back into investor favor.
SEARCH FOR QUALITY, GROWTH AND INNOVATION
Our emphasis was on companies with healthy balance sheets, attractive business
models and strong management teams that were focused on increasing long-term
earnings and revenues in a strategic manner. As growth investors in the
small-cap area, we also looked for innovation, which we found primarily in three
sectors: health care, technology and consumer discretionary. In the health care
sector, we emphasized biotechnology, pharmaceutical and medical devices
companies. Nektar Therapeutics produced sharp gains following the release of
positive test data. This pharmaceutical company is pioneering inhaled insulin
for diabetics. Salix Pharmaceuticals, a specialty pharmaceutical company
developing new treatments for gastric illnesses, also rallied sharply.
The fund's technology stocks included semiconductor and semiconductor equipment
companies as well as storage and software names. We targeted companies with
niche products and avoided commodity-type names that depend on the economy to
generate earnings growth. Silicon Image took off during the period as investors
began to recognize its growth potential. This semiconductor company has a new
type of digital connectivity technology called HDMI that is just starting to be
designed into products. Silicon Storage Technology and Monolithic System
Technology were also standouts. Silicon Storage is a leader in a kind of memory
known as low-density flash. We sold our investment in Monolithic, which makes
memory technologies, following a generous buy-out offer in February.
1 (C)2004, Morningstar, Inc. All rights reserved. The information contained
herein is the proprietary information of Morningstar, Inc., may not be
copied or redistributed for any purpose and may only be used for
noncommercial, personal purposes. The information contained herein is not
represented or warranted to be accurate, correct, complete or timely.
Morningstar, Inc. shall not be responsible for investment decisions,
damages or other losses resulting from the use of this information. Past
performance is no guarantee of future performance. Morningstar, Inc. has
not granted consent for it to be considered or deemed an "expert" under the
Securities Act of 1933.
21
TOP 5 SECTORS AS OF 03/31/04 (%)
Information technology 29.9
Health care 23.5
Consumer discretionary 16.8
Industrials 12.0
Financials 10.2
TOP 10 HOLDINGS AS OF 03/31/04 (%)
Jarden 2.4
Station Casinos 2.0
Silicon Storage Technology 1.3
Entegris 1.3
Investors Financial Services 1.3
Cost Plus 1.3
Salix Pharmaceuticals 1.3
Sharper Image 1.2
Artisan Components 1.2
PETCO Animal Supplies 1.2
HOLDINGS DISCUSSED IN THIS REPORT
AS OF 03/31/04 (%)
Nektar Therapeutics 1.1
Salix Pharmaceuticals 1.3
Silicon Image 1.0
Silicon Storage Technology 1.3
Station Casinos 2.0
Jarden 2.4
Netopia 0.6
Cray 0.5
Bombay Company 0.8
PETCO Animal Supplies 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 Small Company Equity Fund
In the consumer discretionary sector, gaming stocks were particularly strong
performers. They benefited as financially strapped states looked for alternative
revenue sources. Station Casinos posted outstanding gains. This company runs
casinos for local residents in Las Vegas and also partners with Native Americans
to build new casinos in other locations. Jarden, a diversified consumer products
company, also rallied sharply as investors began to recognize the company's
strong marketing abilities. Media stocks added positively to performance amid
expectations that they will benefit from the upcoming Presidential election and
summer Olympics.
LONG-TERM VIEW, RISK MANAGEMENT APPROACH
We had only small investments in many of our weakest performers. Netopia, which
makes smart modems for DSL, tumbled, as did Cray, the super computer company.
Both stocks came down as investors focused on the near term, but we continued to
own them because we believed their prospects remained strong over the long term.
Bombay, a furniture retailer, also fell. Its management undertook several new
initiatives that resulted in a short-term revenue shortfall. A sizable
investment in PETCO Animal Supplies hurt performance as increased competition
put pressure on the stock.
OPPORTUNITIES AHEAD
Looking ahead, we believe that small-cap stocks remain reasonably valued, given
their strong earnings growth prospects. We also think the sector offers ample
opportunities for selective investors. While small-cap stocks stand to benefit
from further economic growth, we plan to maintain our focus on higher quality
companies that can expand their businesses and profits independent of the
economic environment.
Paul Berlinguet has managed Columbia Small Company
Equity Fund since November 2003 and has been with
the advisor since October 2003.
/s/ Paul Berlinguet
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.
22
FINANCIAL STATEMENTS____________________________________________________________
March 31, 2004 Columbia Equity 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 as of the last day of
the reporting period. 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 accrued by the
fund during the reporting period. 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) during the reporting
period. The Statement of Changes in Net
Assets also details changes in the number
of shares outstanding.
------------------------------------------
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.
------------------------------------------
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 the classes' performance and
certain key ratios (e.g., class expenses
and net investment income as a percentage
of average net assets).
23
INVESTMENT PORTFOLIO____________________________________________________________
March 31, 2004 (Unaudited) Columbia Asset Allocation Fund
Shares Value ($)
------------ ------------
COMMON STOCKS - 65.5%
CONSUMER DISCRETIONARY - 8.4%
AUTO COMPONENTS - 0.3%
Autoliv, Inc. 3,830 157,030
BorgWarner, Inc. 800 67,864
Continental AG 8,000 315,230
Dana Corp. 5,200 103,272
Gentex Corp. 5,840 253,339
Johnson Controls, Inc. 2,800 165,620
Lear Corp. 3,300 204,468
Modine Manufacturing Co. 1,200 31,272
Standard Motor Products, Inc. 2,900 45,472
Superior Industries International 2,000 70,880
Visteon Corp. 1 10
------------
Auto Components Total 1,414,457
AUTOMOBILES - 0.5%
General Motors Corp. 17,202 810,214
Nissan Motor Co., Ltd. 23,000 256,940
Renault SA 6,232 432,154
Toyota Motor Corp. 16,400 610,174
------------
Automobiles Total 2,109,482
HOTELS, RESTAURANTS & LEISURE - 1.2%
Accor SA 8,070 327,423
Alliance Gaming Corp. (a) 4,500 144,585
Bally Total Fitness Holding Corp. (a) 5,300 31,058
Bob Evans Farms, Inc. 1,824 59,171
Brinker International, Inc. (a) 4,700 178,271
Buca, Inc. (a) 200 1,250
Compass Group PLC 58,880 389,188
Darden Restaurants, Inc. 2,600 64,454
Dave & Buster's, Inc. (a) 2,200 33,110
Gaylord Entertainment Co. (a) 3,700 114,330
Harrah's Entertainment, Inc. 8,989 493,406
Hilton Hotels Corp. 10,070 163,638
Intercontinental Hotels Group PLC 43,135 395,265
International Game Technology, Inc. 1,600 71,936
Landry's Restaurants, Inc. 2,800 83,524
Lone Star Steakhouse & Saloon 3,700 108,003
Marcus Corp. 3,900 67,665
Marriott International, Inc., Class A 1,500 63,825
MGM Mirage, Inc. (a) 1,740 78,892
Outback Steakhouse, Inc. 1,370 66,719
Pinnacle Entertainment, Inc. (a) 3,100 42,780
Prime Hospitality Corp. (a) 4,500 51,210
Scientific Games Corp., Class A (a) 11,900 222,768
Six Flags, Inc. (a) 12,800 100,480
Starwood Hotels & Resorts Worldwide, Inc. 1,270 51,435
Station Casinos, Inc. 6,200 273,854
Wendy's International, Inc. 41,869 1,703,650
Yum! Brands, Inc. (a) 12,860 488,551
------------
Hotels, Restaurants & Leisure Total 5,870,441
HOUSEHOLD DURABLES - 0.5%
American Greetings Corp., Class A (a) 2,100 47,817
CSS Industries, Inc. 1,700 56,525
Shares Value ($)
------------ ------------
Garmin Ltd. 4,370 186,643
Interface, Inc., Class A (a) 5,700 45,315
Kimball International, Inc., Class B 3,700 57,979
Koninklijke (Royal) Philips
Electronics NV 27,590 798,896
Land and Houses Public Co.,
Ltd., NVDR 885,900 261,853
Matsushita Electric Industrial Co.,
Ltd., ADR 57,000 878,899
Newell Rubbermaid, Inc. 5,200 120,640
Russ Berrie & Co., Inc. 1,100 38,500
------------
Household Durables Total 2,493,067
INTERNET & CATALOG RETAIL - 0.2%
eBay, Inc. (a) 11,400 790,362
------------
Internet & Catalog Retail Total 790,362
LEISURE EQUIPMENT & PRODUCTS - 0.2%
Action Performance Companies, Inc. 4,200 64,134
Brunswick Corp. 2,220 90,643
Jakks Pacific, Inc. (a) 3,600 54,000
M&F Worldwide Corp. (a) 2,800 38,332
Mattel, Inc. 30,468 561,830
------------
Leisure Equipment & Products Total 808,939
MEDIA - 2.3%
Alliance Atlantis Communications,
Inc., Class B (a) 5,600 106,400
Catalina Marketing Corp. (a) 2,500 48,475
Clear Channel Communications, Inc. 32,859 1,391,579
Cumulus Media, Inc., Class A (a) 3,900 77,961
Dentsu, Inc. 39 118,924
Dentsu, Inc. (a) 39 115,932
Gannett Co., Inc. 6,157 542,678
JC Decaux SA (a) 23,170 518,651
Journal Communications, Inc., Class A 4,000 80,000
Knight-Ridder, Inc. 900 65,925
Liberty Corp. 1,600 74,032
Lin TV Corp., Class A (a) 6,200 147,622
McGraw-Hill Companies, Inc. 15,672 1,193,266
Media General, Inc., Class A 1,000 67,280
Mediacom Communications Corp. (a) 6,500 52,130
New York Times Co., Class A 2,700 119,340
News Corp., Ltd. 29,600 266,834
Omnicom Group, Inc. 11,300 906,825
Pearson PLC 35,520 405,056
Radio One, Inc., Class D (a) 4,800 88,800
Reuters Group PLC 43,400 309,672
Sinclair Broadcast Group, Inc.,
Class A (a) 13,400 167,500
Time Warner, Inc. (a) 69,885 1,178,261
TiVo, Inc. (a) 9,500 84,455
Univision Communications, Inc.,
Class A (a) 6,570 216,876
United Business Media PLC 21,200 193,483
Viacom, Inc., Class A 12,417 490,968
Viacom, Inc., Class B 24,660 966,919
Walt Disney Co. 15,200 379,848
WPP Group PLC 25,000 253,746
XM Satellite Radio Holdings, Inc.,
Class A (a) 10,805 302,540
------------
Media Total 10,931,978
See Accompanying Notes to Financial Statements.
24
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia Asset Allocation Fund
Shares Value ($)
------------ ------------
COMMON STOCKS - (CONTINUED)
CONSUMER DISCRETIONARY - (continued)
MULTILINE RETAIL - 0.7%
Dollar Tree Stores, Inc. (a) 3,660 113,057
Federated Department Stores, Inc. 6,600 356,730
Kohl's Corp. (a) 22,800 1,101,924
Seiyu Ltd. (a) 43,000 170,293
ShopKo Stores, Inc. (a) 2,500 36,550
Takashimaya Co., Ltd. 29,000 324,246
Target Corp. 23,900 1,076,456
------------
Multiline Retail Total 3,179,256
SPECIALTY RETAIL - 2.2%
Aoyama Trading Co., Ltd. 11,900 292,693
Bed Bath & Beyond, Inc. (a) 32,175 1,343,628
Best Buy Co., Inc. 18,300 946,476
Boise Cascade Corp. 2,800 97,020
Bombay Co., Inc. (a) 14,100 110,685
Borders Group, Inc. 6,200 147,188
Building Material Holding Corp. 1,700 29,835
Chico's FAS, Inc. (a) 19,290 895,056
CompuCom Systems, Inc. (a) 9,100 49,959
Cost Plus, Inc. (a) 3,900 162,825
GameStop Corp., Class A (a) 3,300 59,466
Goody's Family Clothing, Inc. 4,800 68,496
Home Depot, Inc. 26,200 978,832
Lowe's Companies, Inc. 28,255 1,585,953
Monro Muffler, Inc. (a) 3,700 92,463
Movie Gallery, Inc. 1,200 23,508
Nitori Co., Ltd. 4,250 285,683
Office Depot, Inc. (a) 63,577 1,196,519
Party City Corp. (a) 4,000 59,560
PETCO Animal Supplies, Inc. (a) 4,800 135,264
Rent-Way, Inc. (a) 7,900 69,520
Ross Stores, Inc. 3,800 116,318
Sharper Image Corp. (a) 4,900 159,642
Staples, Inc. 40,270 1,022,455
TBC Corp. (a) 1,000 29,370
TJX Companies, Inc. 9,700 238,232
USS Co., Ltd. 2,200 182,692
Williams-Sonoma, Inc. (a) 5,350 182,970
------------
Specialty Retail Total 10,562,308
TEXTILES, APPAREL & LUXURY GOODS - 0.3%
Coach, Inc. (a) 19,760 809,962
Delta Apparel, Inc. 1,200 23,880
Hampshire Group Ltd. (a) 1,900 57,912
Kellwood Co. 2,500 98,125
Puma AG 1,600 353,034
Russell Corp. 2,800 51,128
Sanyo Shokai Ltd. 15,000 114,350
Stride Rite Corp. 3,400 36,074
Tandy Brands Accessories, Inc. 300 3,909
Wolverine World Wide, Inc. 3,200 77,216
------------
Textiles, Apparel & Luxury Goods Total 1,625,590
------------
CONSUMER DISCRETIONARY TOTAL 39,785,880
Shares Value ($)
------------ ------------
CONSUMER STAPLES - 5.3%
BEVERAGES - 1.2%
Coca-Cola Co. 34,600 1,740,380
Diageo PLC 20,800 271,901
Pepsi Bottling Group, Inc. 4,800 142,800
PepsiCo, Inc. 62,489 3,365,033
Pernod-Ricard SA 2,625 319,802
------------
Beverages Total 5,839,916
FOOD & STAPLES RETAILING - 1.0%
BJ's Wholesale Club, Inc. (a) 1,500 38,175
Casino Guichard Perrachon SA 2,700 259,330
Costco Wholesale Corp. (a) 35,269 1,324,704
NeighborCare, Inc. (a) 3,100 75,175
Performance Food Group Co. (a) 1,900 65,265
Sysco Corp. 19,330 754,836
Wal-Mart Stores, Inc. 33,240 1,984,096
Winn-Dixie Stores, Inc. 3,800 28,880
------------
Food & Staples Retailing Total 4,530,461
FOOD PRODUCTS - 1.0%
American Italian Pasta Co., Class A 2,300 91,839
Bunge Ltd. 17,700 711,894
Central Garden and Pet Co. (a) 1,500 54,000
ConAgra Foods, Inc. 43,511 1,172,186
Corn Products International, Inc. 2,800 112,000
Dean Foods Co. (a) 11,720 391,448
Hormel Foods Corp. 2,300 67,459
John B. Sanfilippo & Son, Inc. (a) 900 33,030
Kraft Foods, Inc. 33,556 1,074,128
Nestle SA, Registered Shares 3,224 822,520
Omega Protein Corp. (a) 3,800 27,626
Thai Union Frozen Products
Public Co., Ltd. 124,200 75,321
------------
Food Products Total 4,633,451
HOUSEHOLD PRODUCTS - 1.2%
Clorox Co. 22,884 1,119,256
Kimberly-Clark Corp. 20,729 1,308,000
Procter & Gamble Co. 24,808 2,601,863
Reckitt Benckiser PLC 35,300 875,385
------------
Household Products Total 5,904,504
PERSONAL PRODUCTS - 0.4%
Alberto-Culver Co., Inc., Class B 32,325 1,418,098
Avon Products, Inc. 1,900 144,153
Oriflame Cosmetics SA (a) 4,800 135,261
------------
Personal Products Total 1,697,512
TOBACCO - 0.5%
Altria Group, Inc. 37,047 2,017,209
Imperial Tobacco Group PLC 15,475 338,390
------------
Tobacco Total 2,355,599
------------
CONSUMER STAPLES TOTAL 24,961,443
See Accompanying Notes to Financial Statements.
25
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia Asset Allocation Fund
Shares Value ($)
------------ ------------
COMMON STOCKS - (CONTINUED)
ENERGY - 4.6%
ENERGY EQUIPMENT & SERVICES - 0.9%
BJ Services Co. (a) 5,370 232,360
Halliburton Co. 69,629 2,116,025
Key Energy Services, Inc. (a) 7,400 81,400
Lufkin Industries, Inc. 2,200 68,970
Maverick Tube Corp. (a) 4,100 96,555
Nabors Industries Ltd. (a) 2,040 93,330
National-Oilwell, Inc. (a) 5,400 152,712
Noble Corp. (a) 5,940 228,215
Patterson-UTI Energy, Inc. (a) 3,480 123,227
Schlumberger Ltd. 6,130 391,400
Transocean, Inc. (a) 3,100 86,459
Unit Corp. (a) 3,400 93,228
Universal Compression Holdings, Inc. (a) 2,000 65,800
Weatherford International Ltd. (a) 1,500 63,045
Willbros Group, Inc. (a) 5,900 88,559
------------
Energy Equipment & Services Total 3,981,285
OIL & GAS - 3.7%
Amerada Hess Corp. 2,800 182,784
Apache Corp. 2,394 103,349
BP PLC, ADR 78,466 4,017,459
Carrizo Oil & Gas, Inc. (a) 6,000 43,500
Cimarex Energy Co. (a) 1,000 28,900
ConocoPhillips 35,404 2,471,553
EnCana Corp. 16,400 708,436
ENI S.p.A. 67,900 1,367,004
Exxon Mobil Corp. 75,220 3,128,400
Giant Industries, Inc. (a) 1,000 20,700
Harvest Natural Resources, Inc. (a) 4,800 70,128
Marathon Oil Corp. 51,823 1,744,880
Murphy Oil Corp. 2,040 128,459
Norsk Hydro ASA 3,800 239,367
Occidental Petroleum Corp. 1,900 87,495
Patina Oil & Gas Corp. 4,300 112,875
PTT Public Co., Ltd. 113,300 404,179
Royal Dutch Petroleum Co.,
N.Y. Registered Shares 22,268 1,059,511
Stone Energy Corp. (a) 1,900 93,974
Tom Brown, Inc. (a) 1,900 71,440
Total SA 3,640 669,220
Western Gas Resources, Inc. 2,800 142,380
Westport Resources Corp. (a) 2,900 95,671
Whiting Petroleum Corp. (a) 2,900 68,411
XTO Energy, Inc. 21,211 535,372
------------
Oil & Gas Total 17,595,447
------------
ENERGY TOTAL 21,576,732
FINANCIALS - 13.4%
CAPITAL MARKETS - 2.0%
Bank of New York Co., Inc. 47,615 1,499,872
Bear Stearns Companies, Inc. 1,600 140,288
Shares Value ($)
------------ ------------
Goldman Sachs Group, Inc. 7,682 801,617
Investors Financial Services Corp. 4,113 169,949
Janus Capital Group, Inc. 12,400 203,112
Jefferies Group, Inc. 3,800 134,254
J.P. Morgan Chase & Co. 41,717 1,750,028
LaBranche & Co., Inc. 3,100 34,751
Lehman Brothers Holdings, Inc. 1,800 149,166
Merrill Lynch & Co., Inc. 39,533 2,354,585
Morgan Stanley 22,242 1,274,467
State Street Corp. 14,777 770,325
------------
Capital Markets Total 9,282,414
COMMERCIAL BANKS - 3.7%
Alpha Bank A.E. 9,800 301,738
Anglo Irish Bank Corp., PLC 15,700 251,165
Bancfirst Corp. 200 11,088
Bancorpsouth, Inc. 2,600 56,888
Banco Popular di Verona E Novara 22,900 373,113
Banco Santander Central Hispano SA 35,400 385,535
BancTrust Financial Group, Inc. 1,473 25,778
Bank of Granite Corp. 2,500 51,675
Bank One Corp. 34,095 1,858,859
Banknorth Group, Inc. 4,700 159,988
Barclays PLC 73,930 653,258
Boston Private Financial Holdings, Inc. 3,700 103,600
Bryn Mawr Bank Corp. 3,000 68,700
Capitol Bancorp Ltd. 1,100 29,810
Charter One Financial, Inc. 23,900 845,104
Chemical Financial Corp. 2,445 87,702
Chinatrust Financial Holdings (a) 137,000 164,234
Chittenden Corp. 2,800 92,400
City National Corp. 2,400 143,760
Community Trust Bancorp, Inc. 1,470 48,510
Corus Bankshares, Inc. 2,600 104,754
Credit Agricole SA 25,140 657,417
Credit Suisse Group 10,850 376,221
Cullen/Frost Bankers, Inc. 1,600 68,416
East-West Bancorp, Inc. 2,400 134,400
Erste Bank der oesterreichischen
Sparkassen AG 2,200 329,751
Fifth Third Bancorp 10,365 573,910
First Citizens BancShares, Inc., Class A 300 36,900
First Financial Bankshares, Inc. 1,250 50,088
Greater Bay Bancorp 2,000 58,500
Hancock Holding Co. 1,000 30,960
Hansabank Ltd. 11,055 350,990
Kookmin Bank, ADR 10,300 416,738
MainSource Financial Group, Inc. 965 34,566
MASSBANK Corp. 800 31,816
Mercantile Bank Corp. 2,900 102,950
Merchants Bancshares, Inc. 2,000 57,020
Mid-State Bancshares 3,600 85,140
National City Corp. 20,549 731,133
North Fork Bancorporation, Inc. 4,000 169,280
Northrim BanCorp, Inc. 1,800 46,080
Omega Financial Corp. 400 14,625
Prosperity Bancshares, Inc. 4,300 101,308
See Accompanying Notes to Financial Statements.
26
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia Asset Allocation Fund
Shares Value ($)
------------ ------------
COMMON STOCKS - (CONTINUED)
FINANCIALS - (CONTINUED)
COMMERCIAL BANKS - (CONTINUED)
Riggs National Corp. 3,900 67,119
Royal Bank of Scotland Group PLC 27,887 852,488
Siam Commercial Bank Public
Co., Ltd. 401,100 454,808
Simmons First National Corp., Class A 1,800 49,590
Societe Generale 3,000 256,580
Standard Chartered Ltd., PLC 16,680 280,167
Sterling Bancshares, Inc. 2,900 38,831
S.Y. Bancorp, Inc. 400 8,960
Trico Bancshares 2,500 93,450
UFJ Holdings 139 882,370
UMB Financial Corp. 200 10,140
U.S. Bancorp 79,735 2,204,673
Wells Fargo & Co. 37,559 2,128,469
Whitney Holding Corp. 1,400 58,436
------------
Commercial Banks Total 17,661,949
CONSUMER FINANCE - 0.5%
American Express Co. 9,600 497,760
Cash America International, Inc. 4,600 106,030
MBNA Corp. 67,653 1,869,252
------------
Consumer Finance Total 2,473,042
DIVERSIFIED FINANCIAL SERVICES - 1.5%
Citigroup, Inc. 113,661 5,876,274
Commercial Capital BanCorp, Inc. (a) 5,800 132,936
ING Groep NV 25,720 565,920
Metris Companies, Inc. 7,500 60,300
MFC Bancorp Ltd. 6,100 153,049
MTC Technologies, Inc. (a) 4,200 105,462
National Financial Partners Corp. 2,000 64,500
Nomura Holdings, Inc. 17,000 308,913
------------
Diversified Financial Services Total 7,267,354
INSURANCE - 3.0%
Aflac, Inc. 14,982 601,377
Allianz AG, Registered Shares 4,920 536,494
Ambac Financial Group, Inc. 18,799 1,386,990
American International Group, Inc. 38,512 2,747,831
AmerUs Group Co. 1,000 40,350
Berkshire Hathaway, Inc., Class A (a) 11 1,026,300
Cincinnati Financial Corp. 1,400 60,830
CNA Surety Corp. (a) 2,900 32,045
Commerce Group, Inc. 1,200 57,600
Daido Life Insurance Ltd. 55 224,145
Delphi Financial Group, Inc., Class A 2,550 107,151
Harleysville Group, Inc. 2,600 48,412
Horace Mann Educators Corp. 3,000 47,160
Infinity Property & Casualty Corp. 4,600 144,578
Irish Life & Permanent PLC 19,200 315,191
Kansas City Life Insurance Co. 200 8,558
Lincoln National Corp. 19,388 917,440
Loews Corp. 1,500 88,590
Millea Holdings, Inc. 70 1,087,405
Mitsui Sumitomo Insurance Co., Ltd. 39,000 414,364
Shares Value ($)
------------ ------------
Nationwide Financial Services, Inc.,
Class A 2,300 82,915
Navigators Group, Inc. (a) 1,200 34,536
Old Republic International Corp. 1,050 25,788
Philadelphia Consolidated Holding
Co. (a) 2,200 127,600
Phoenix Companies, Inc. 6,200 83,142
Progressive Corp. 5,500 481,800
RLI Corp. 1,800 69,480
St. Paul Companies, Inc. 2,100 84,021
State Auto Financial Corp. 1,900 49,039
Travelers Property Casualty Corp.,
Class B 63,213 1,091,689
Universal American Financial Corp. (a) 2,600 31,200
Willis Group Holdings Ltd. 29,686 1,104,319
XL Capital Ltd., Class A 13,991 1,063,876
------------
Insurance Total 14,222,216
REAL ESTATE - 1.9%
Alexandria Real Estate Equities,
Inc., REIT 3,230 203,490
American Financial Realty Trust, REIT 3,890 65,936
Apartment Investment & Management
Co., Class A, REIT 1,580 49,122
Archstone-Smith Trust, REIT 20,771 612,952
AvalonBay Communities, Inc., REIT 1,580 84,656
Boston Properties, Inc., REIT 1,650 89,612
Boykin Lodging Co., REIT 5,100 47,328
Brookfield Properties Co., REIT 1,920 59,731
CarrAmerica Realty Corp., REIT 1,310 44,409
CenterPoint Properties Trust, REIT 1,150 94,875
Chelsea Property Group, Inc., REIT 1,000 62,940
Corporate Office Properties Trust 1,710 42,750
Cousins Properties, Inc., REIT 5,900 193,461
Duke Realty Corp., REIT 5,150 178,808
Eastgroup Properties, Inc., REIT 1,900 67,450
Equity Office Properties Trust, REIT 4,280 123,649
Equity One, Inc., REIT 2,900 55,738
Equity Residential, REIT 2,960 88,356
First Industrial Realty Trust, Inc., REIT 1,110 43,845
First Potomac Realty Trust, REIT 1,200 25,080
General Growth Properties, Inc., REIT 8,820 310,023
Getty Realty Corp., REIT 2,000 53,140
Gladstone Commercial Corp., REIT 2,400 41,040
iStar Financial, Inc., REIT 5,400 228,420
Keystone Property Trust Corp., REIT 2,000 48,620
Kimco Realty Corp., REIT 14,194 723,610
La Quinta Corp., REIT (a) 8,380 63,185
Liberty Property Trust, REIT 3,620 162,900
Manufactured Home Communities,
Inc., REIT 880 31,064
Mid-America Apartment Communities,
Inc., REIT 2,000 74,260
Mitsubishi Estate Co., REIT 86,000 1,163,600
Nationwide Health Properties, Inc., REIT 3,200 71,264
Newcastle Investment Corp., REIT 3,000 101,100
Pan Pacific Retail Properties, Inc., REIT 1,300 67,730
ProLogis, REIT 6,580 236,025
See Accompanying Notes to Financial Statements.
27
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia Asset Allocation Fund
Shares Value ($)
------------ ------------
COMMON STOCKS - (CONTINUED)
FINANCIALS - (CONTINUED)
REAL ESTATE - (CONTINUED)
PS Business Parks, Inc., REIT 2,100 97,335
Public Storage, Inc., REIT 2,760 134,302
Regency Centers Corp., REIT 4,070 190,191
Rouse Co., REIT 3,680 197,248
Shurgard Storage Centers, Inc. 800 31,920
Simon Property Group, Inc., REIT 5,380 314,407
SL Green Realty Corp., REIT 1,730 82,521
St. Joe Co., REIT 3,240 131,836
Sumitomo Realty & Development
Co., Ltd. 31,000 402,196
Sun Hung Kai Properties Ltd. 85,000 777,155
Tanger Factory Outlet Centers, Inc., REIT 1,400 63,448
United Dominion Realty Trust,
Inc., REIT 3,000 58,860
Universal Health Realty Income
Trust, REIT 1,300 43,810
Urstadt Biddle Properties, Inc.,
Class A, REIT 2,900 47,850
Vornado Realty Trust, REIT 11,131 673,203
------------
Real Estate Total 8,856,451
THRIFTS & MORTGAGE FINANCE - 0.8%
Countrywide Financial Corp. 9,544 915,270
Fannie Mae 6,600 490,710
Freddie Mac 17,660 1,043,000
Golden West Financial Corp. 3,200 358,240
Greenpoint Financial Corp. 4,050 177,026
PMI Group, Inc. 4,600 171,856
Radian Group, Inc. 3,300 140,580
Sovereign Bancorp, Inc. 9,300 199,206
Webster Financial Corp. 2,500 126,775
------------
Thrifts & Mortgage Finance Total 3,622,663
------------
FINANCIALS TOTAL 63,386,089
HEALTH CARE - 7.7%
BIOTECHNOLOGY - 1.1%
Affymetrix, Inc. (a) 1,900 64,125
Amgen, Inc. (a) 34,330 1,996,976
Amylin Pharmaceuticals, Inc. (a) 6,394 151,474
BioMarin Pharmaceuticals, Inc. (a) 11,100 83,472
Ciphergen Biosystems, Inc. (a) 7,100 59,143
Cytogen Corp. (a) 7,600 93,328
Exact Sciences Corp. (a) 7,900 61,383
Gilead Sciences, Inc. (a) 21,865 1,219,411
ICOS Corp. (a) 4,100 151,905
Ilex Oncology, Inc. (a) 4,900 117,208
Martek Biosciences Corp. (a) 8,100 461,700
Neopharm, Inc. (a) 3,210 60,220
Neurocrine Biosciences, Inc. (a) 2,000 118,200
Protein Design Labs, Inc. (a) 4,800 114,336
Shares Value ($)
------------ ------------
Serologicals Corp. (a) 1,600 32,640
Telik, Inc. (a) 4,900 131,516
------------
Biotechnology Total 4,917,037
HEALTH CARE EQUIPMENT & SUPPLIES - 2.1%
Alcon, Inc. 20,660 1,307,778
Analogic Corp. 1,300 59,137
Biomet, Inc. 3,700 141,932
Bio-Rad Laboratories, Inc., Class A (a) 2,300 129,651
Boston Scientific Corp. (a) 39,330 1,666,805
Cardiac Science, Inc. (a) 18,300 79,971
Conceptus, Inc. (a) 6,900 82,248
Cytyc Corp. (a) 6,200 137,950
Integra LifeSciences Holdings Corp. (a) 3,500 107,170
Kinetic Concepts, Inc. (a) 2,500 112,125
LCA-Vision, Inc. (a) 3,900 91,533
Medical Action Industries, Inc. (a) 7,500 153,300
Millipore Corp. (a) 2,700 138,726
Nobel Biocare Holdings AG 1,000 137,435
Ocular Sciences, Inc. (a) 400 11,660
Palomar Medical Technologies, Inc. (a) 2,200 39,688
Phonak Holdings AG 6,900 166,226
ResMed, Inc. (a) 2,100 94,899
Smith & Nephew PLC (a) 97,040 958,103
Sola International, Inc. (a) 1,800 41,850
SonoSite, Inc. (a) 4,600 98,118
St. Jude Medical, Inc. (a) 16,960 1,222,816
SurModics, Inc. (a) 3,200 63,712
Varian Medical Systems, Inc. (a) 18,540 1,600,187
Zimmer Holdings, Inc. (a) 15,650 1,154,657
------------
Health Care Equipment & Supplies Total 9,797,677
HEALTH CARE PROVIDERS & SERVICES - 1.4%
Advisory Board Co. (a) 3,300 120,615
Aetna, Inc. 24,190 2,170,327
America Service Group, Inc. (a) 2,259 77,484
Anthem, Inc. (a) 2,280 206,659
Capital Senior Living Corp. (a) 1,500 9,285
Caremark Rx, Inc. (a) 67,820 2,255,015
Chronimed, Inc. (a) 3,900 30,303
Community Health Systems, Inc. (a) 3,520 97,962
Cross Country Healthcare, Inc. (a) 2,500 41,625
DaVita, Inc. (a) 4,530 216,308
First Health Group Corp. (a) 7,400 161,764
Genesis HealthCare Corp. (a) 1,550 37,742
HCA, Inc. 2,900 117,798
Hooper Holmes, Inc. 4,300 26,832
Kindred Healthcare, Inc. (a) 1,700 85,510
LifePoint Hospitals, Inc. (a) 2,700 87,318
Manor Care, Inc. 4,000 141,160
McKesson Corp. 1,000 30,090
Orthodontic Centers of America, Inc. (a) 5,900 46,610
Parexel International Corp. (a) 4,100 73,267
Pediatrix Medical Group, Inc. (a) 1,400 88,200
Province Healthcare Co. (a) 2,000 31,800
Stewart Enterprises, Inc., Class A (a) 9,400 68,338
UnitedHealth Group, Inc. 2,310 148,856
U.S. Physical Therapy, Inc. (a) 2,900 40,020
See Accompanying Notes to Financial Statements.
28
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia Asset Allocation Fund
Shares Value ($)
------------ ------------
COMMON STOCKS - (CONTINUED)
HEALTH CARE - (CONTINUED)
HEALTH CARE PROVIDERS & SERVICES - (CONTINUED)
WellPoint Health Networks (a) 2,410 274,065
------------
Health Care Providers & Services Total 6,684,953
PHARMACEUTICALS - 3.1%
Advancis Pharmaceutical Corp. (a) 9,500 86,830
AstraZeneca PLC 8,700 404,705
Atrix Labs, Inc. (a) 3,000 76,500
Barr Pharmaceuticals, Inc. (a) 3,375 154,912
Bristol-Myers Squibb Co. 18,310 443,651
Caraco Pharmaceutical Laboratories
Ltd. (a) 2,600 26,416
Chugai Pharmaceutical Co. 40,200 638,358
DepoMed, Inc. (a) 12,400 97,092
DOV Pharmaceutical, Inc. (a) 7,000 108,640
Dr. Reddy's Laboratories Ltd., ADR 11,700 280,215
Elan Corp., PLC, ADR (a) 7,300 150,526
Endo Pharmaceuticals Holdings, Inc. (a) 4,200 102,564
GlaxoSmithKline PLC 47,230 930,018
IVAX Corp. (a) 5,740 130,700
Johnson & Johnson Co. 9,749 494,469
Medicis Pharmaceutical Corp., Class A 4,900 196,000
Merck & Co., Inc. 11,633 514,062
Nektar Therapeutics (a) 6,100 131,638
Novartis AG, Registered Shares 12,180 517,581
Noven Pharmaceuticals, Inc. (a) 5,700 122,379
Pfizer, Inc. 163,209 5,720,475
Renovis, Inc. (a) 6,800 69,020
Salix Pharmaceuticals Ltd. (a) 6,000 174,120
Takeda Chemical Industries Ltd. 7,600 338,150
Taro Pharmaceuticals Industries Ltd. (a) 2,400 139,176
Teva Pharmaceutical Industries
Ltd., ADR 42,670 2,705,705
------------
Pharmaceuticals Total 14,753,902
------------
HEALTH CARE TOTAL 36,153,569
INDUSTRIALS - 7.3%
AEROSPACE & DEFENSE - 1.2%
AAR Corp. (a) 4,154 51,011
Alliant Techsystems, Inc. (a) 1,500 81,600
Armor Holdings, Inc. (a) 800 26,480
DRS Technologies, Inc. (a) 3,800 106,324
Esterline Technologies Corp. (a) 2,900 72,065
General Dynamics Corp. 12,520 1,118,412
Herley Industries, Inc. (a) 2,100 39,648
Honeywell International, Inc. 36,738 1,243,581
Kaman Corp., Class A 4,000 59,720
L-3 Communications Holdings, Inc. 400 23,792
Ladish Co., Inc. (a) 4,500 39,510
Northrop Grumman Corp. 600 59,052
Precision Castparts Corp. 1,700 74,851
Raytheon Co. 25,098 786,571
United Technologies Corp. 23,740 2,048,762
------------
Aerospace & Defense Total 5,831,379
Shares Value ($)
------------ ------------
AIR FREIGHT & LOGISTICS - 0.1%
CNF, Inc. 2,200 73,920
EGL, Inc. (a) 8,400 150,864
HUB Group, Inc., Class A (a) 2,665 80,030
Ryder System, Inc. 2,100 81,333
UTI Worldwide, Inc. 1,900 84,911
------------
Air Freight & Logistics Total 471,058
AIRLINES - 0.1%
AMR Corp. (a) 7,600 96,748
Atlantic Coast Airlines Holdings, Inc. (a) 2,600 18,902
MAIR Holdings, Inc. (a) 2,400 21,936
Skywest, Inc. 3,100 59,644
------------
Airlines Total 197,230
BUILDING PRODUCTS - 0.1%
Jacuzzi Brands, Inc. (a) 5,400 50,652
Masco Corp. 3,400 103,496
NCI Building Systems, Inc. (a) 2,200 51,612
Wienerberger AG 8,650 287,407
------------
Building Products Total 493,167
COMMERCIAL SERVICES & SUPPLIES - 1.5%
ActivCard Corp. (a) 4,900 31,703
Allied Waste Industries, Inc. (a) 11,400 151,734
Angelica Corp. 1,900 43,377
Arbitron, Inc. (a) 2,900 116,754
Avery Dennison Corp. 9,646 600,078
Brink's Co. 7,500 206,850
Capita Group PLC 48,131 276,874
Casella Waste Systems, Inc., Class A (a) 7,000 101,780
Cendant Corp. 64,900 1,582,911
Century Business Services, Inc. (a) 7,900 38,789
ChoicePoint, Inc. (a) 2,600 98,878
Consolidated Graphics, Inc. (a) 2,900 111,505
Corporate Executive Board Co. 5,090 239,230
Danka Business Systems PLC, ADR (a) 7,600 32,384
Education Management Corp. (a) 4,100 130,503
Electro Rent Corp. (a) 1,200 12,072
First Consulting Group, Inc. (a) 5,031 31,494
Healthcare Services Group, Inc. 3,750 61,688
Imagistics International, Inc. (a) 3,200 140,960
Ionics, Inc. (a) 1,800 51,120
Lightbridge, Inc. (a) 4,600 27,140
Manpower, Inc. 5,900 274,350
Monster Worldwide, Inc. (a) 6,650 174,230
Navigant Consulting, Inc. (a) 3,900 78,897
NCO Group, Inc. (a) 5,600 130,872
Randstad Holding NV 11,400 304,426
SOURCECORP, Inc. (a) 2,000 53,000
Sylvan Learning Systems, Inc. (a) 2,800 98,308
TeleTech Holdings, Inc. (a) 2,200 13,772
United Rentals, Inc. (a) 2,700 47,979
Waste Management, Inc. 64,158 1,936,288
------------
Commercial Services & Supplies Total 7,199,946
See Accompanying Notes to Financial Statements.
29
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia Asset Allocation Fund
Shares Value ($)
------------ ------------
COMMON STOCKS - (CONTINUED)
INDUSTRIALS - (CONTINUED)
CONSTRUCTION & ENGINEERING - 0.2%
Chicago Bridge & Iron Co. NV,
N.Y. Registered Shares 4,000 111,320
Comfort Systems USA, Inc. (a) 6,700 48,374
EMCOR Group, Inc. (a) 1,000 36,700
Mastec, Inc. (a) 1,300 12,311
Quanta Services, Inc. (a) 2,000 14,160
Shimizu Corp. 63,000 343,137
Taisei Corp. 74,000 312,221
Washington Group International, Inc. (a) 1,900 69,559
------------
Construction & Engineering Total 947,782
ELECTRICAL EQUIPMENT - 0.3%
American Power Conversion 6,930 159,459
Ametek, Inc. 2,800 71,792
C&D Technologies, Inc. 2,900 48,459
Genlyte Group, Inc. (a) 1,100 61,644
Hubbell, Inc., Class B 1,000 40,130
Nitto Denko Corp. 5,500 301,673
Plug Power, Inc. (a) 8,500 65,620
Siemens AG 7,181 530,835
Woodward Governor Co. 1,100 70,114
------------
Electrical Equipment Total 1,349,726
INDUSTRIAL CONGLOMERATES - 2.2%
3M Co. 14,900 1,219,863
Allete, Inc. 1,900 66,671
Burberry Group PLC 56,100 369,002
Carlisle Companies, Inc. 3,000 169,950
General Electric Co. 172,560 5,266,531
NIWS Co., Ltd. 65 198,830
Textron, Inc. 24,717 1,313,709
Tyco International Ltd. 69,640 1,995,186
------------
Industrial Conglomerates Total 10,599,742
MACHINERY - 1.2%
AGCO Corp. (a) 3,000 62,130
Alamo Group, Inc. 1,400 24,346
Atlas Copco AB, Class B 16,900 551,306
Briggs & Stratton Corp. 1,000 67,470
Cuno, Inc. (a) 2,300 103,224
Deere & Co. 16,351 1,133,288
Donaldson Co., Inc. 6,000 159,180
Dover Corp. 31,141 1,207,337
EnPro Industries, Inc. (a) 3,600 68,112
Federal Signal Corp. 1,461 29,001
Harsco Corp. 2,200 100,100
Ingersoll-Rand Co., Ltd., Class A 1,900 128,535
ITT Industries, Inc. 13,800 1,053,354
Kadant, Inc. (a) 2,900 60,465
Linde AG 7,400 392,396
Navistar International Corp. (a) 4,600 210,910
Parker Hannifin Corp. 1,600 90,400
RAE Systems, Inc. (a) 16,400 66,584
Robbins & Myers, Inc. 2,973 64,068
Shares Value ($)
------------ ------------
Tecumseh Products Co., Class A 1,300 54,730
UNOVA, Inc. (a) 1,700 36,737
------------
Machinery Total 5,663,673
ROAD & RAIL - 0.2%
Covenant Transport, Inc., Class A (a) 2,200 39,666
Dollar Thrifty Automotive Group, Inc. (a) 2,000 50,540
Genesee & Wyoming, Inc., Class A (a) 4,701 116,115
Heartland Express, Inc. 3,700 84,286
Old Dominion Freight Line, Inc. (a) 2,400 80,880
Sirva, Inc. (a) 4,100 98,892
Tokyu Corp. 52,000 325,109
U.S. Xpress Enterprises, Inc., Class A (a) 1,300 18,473
Werner Enterprises, Inc. 2,400 45,480
------------
Road & Rail Total 859,441
TRADING COMPANIES & DISTRIBUTORS - 0.1%
Aceto Corp. 3,200 50,272
Fastenal Co. 1,840 98,790
Hughes Supply, Inc. 1,502 78,705
Mitsubishi Corp. 22,000 259,481
Watsco., Inc. 3,500 101,500
------------
Trading Companies & Distributors Total 588,748
TRANSPORTATION INFRASTRUCTURE - 0.1%
BAA PLC 33,760 320,562
------------
Transportation Infrastructure Total 320,562
------------
INDUSTRIALS TOTAL 34,522,454
INFORMATION TECHNOLOGY - 11.8%
COMMUNICATIONS EQUIPMENT - 1.9%
3Com Corp. (a) 14,040 99,122
Advanced Fibre Communications,
Inc. (a) 24,400 537,532
Anaren, Inc. (a) 4,000 63,120
Andrew Corp. (a) 13,100 229,250
Avaya, Inc. (a) 8,300 131,804
Black Box Corp. 1,200 64,308
Cable Design Technologies Corp. (a) 3,800 36,024
Cisco Systems, Inc. (a) 148,965 3,503,657
Comverse Technology, Inc. (a) 13,840 251,058
F5 Networks, Inc. (a) 2,700 91,395
Finisar Corp. (a) 23,000 50,140
Foundry Networks, Inc. (a) 3,500 60,095
Inter-Tel, Inc. 2,045 61,473
Juniper Networks, Inc. (a) 11,500 299,115
Netopia, Inc. 6,000 73,560
NMS Communications Corp. (a) 9,500 68,020
Nokia Oyj, ADR 77,118 1,563,953
Nortel Networks Corp. (a) 36,370 213,672
Optical Communication Products,
Inc. (a) 7,900 25,991
Polycom, Inc. (a) 8,420 178,757
QUALCOMM, Inc. 15,180 1,008,256
See Accompanying Notes to Financial Statements.
30
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia Asset Allocation Fund
Shares Value ($)
------------ ------------
COMMON STOCKS - (CONTINUED)
INFORMATION TECHNOLOGY - (CONTINUED)
COMMUNICATIONS EQUIPMENT - (CONTINUED)
Tollgrade Communications, Inc. (a) 3,100 49,476
UTStarcom, Inc. (a) 5,840 167,958
------------
Communications Equipment Total 8,827,736
COMPUTERS & PERIPHERALS - 1.2%
Acer, Inc. 106,000 164,067
Advanced Digital Information Corp. (a) 800 9,104
Applied Films Corp. (a) 4,100 114,390
Cray, Inc. (a) 11,500 76,245
Dell, Inc. (a) 36,475 1,226,290
Electronics for Imaging (a) 1,900 46,683
EMC Corp. (a) 63,200 860,152
Hutchinson Technology, Inc. (a) 1,800 50,508
Imation Corp. 500 18,810
Innovex, Inc. (a) 3,800 25,802
Intergraph Corp. (a) 1,235 29,862
International Business Machines Corp. 19,293 1,771,869
Iomega Corp. (a) 5,400 30,186
Lexmark International, Inc. (a) 13,554 1,246,968
Pinnacle Systems, Inc. (a) 10,800 97,524
------------
Computers & Peripherals Total 5,768,460
ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.7%
Agilent Technologies, Inc. (a) 33,670 1,064,982
Agilysys, Inc. 2,400 28,560
Amphenol Corp., Class A (a) 13,280 394,416
Anixter International, Inc. (a) 3,800 107,350
Arrow Electronics, Inc. (a) 4,700 119,662
AVX Corp. 6,800 112,132
Benchmark Electronics, Inc. (a) 1,150 36,202
CDW Corp. 2,840 192,012
Celestica, Inc. (a) 14,700 239,147
Checkpoint Systems, Inc. (a) 3,000 56,700
Coherent, Inc. (a) 3,000 78,870
Epcos AG (a) 11,500 260,961
Flextronics International Ltd. (a) 54,120 931,946
Global Imaging Systems, Inc. (a) 4,100 136,202
Hon Hai Precision Industry 37,000 160,015
Hoya Corp. 2,900 282,255
Identix, Inc. (a) 5,900 34,096
Itron, Inc. (a) 5,100 94,911
Keyence Corp. 1,600 389,088
Littelfuse, Inc. (a) 3,300 122,760
MTS Systems Corp. 3,300 91,311
NU Horizons Electronics Corp. (a) 5,000 52,600
OSI Systems, Inc. (a) 2,000 40,000
Planar Systems, Inc. (a) 4,700 66,881
Samsung Electronic Co., Ltd., GDR 4,400 1,089,000
Samsung Electronics Co., Ltd., GDR (b) 5,096 1,261,260
Symbol Technologies, Inc. 5,890 81,282
TDK Corp. 4,200 320,180
Varian, Inc. (a) 2,800 112,476
Vishay Intertechnology, Inc. (a) 13,840 295,346
------------
Electronic Equipment & Instruments Total 8,252,603
Shares Value ($)
------------ ------------
INTERNET SOFTWARE & SERVICES - 0.4%
Check Point Software Technologies
Ltd. (a) 4,900 111,573
Corillian Corp. (a) 14,100 69,795
Digital River, Inc. (a) 4,900 114,709
Digitas, Inc. (a) 11,700 120,393
Equinix, Inc. (a) 5,500 199,160
Index Corp. 42 231,174
Internet Security Systems (a) 2,900 51,156
Keynote Systems, Inc. (a) 3,800 48,906
Modem Media, Inc. (a) 3,600 23,400
PEC Solutions, Inc. (a) 3,100 40,982
Quovadx, Inc. (a) 9,500 34,960
Stellent, Inc. (a) 300 2,241
Telecommunication Systems, Inc. (a) 5,800 41,760
Yahoo!, Inc. (a) 13,020 632,642
------------
Internet Software & Services Total 1,722,851
IT SERVICES - 0.9%
Accenture Ltd., Class A (a) 46,750 1,159,400
Acxiom Corp. 2,900 63,684
Affiliated Computer Services, Inc.,
Class A (a) 3,000 155,700
Cognizant Technology Solutions
Corp. (a) 20,300 918,575
Computer Horizons Corp. (a) 5,500 23,650
DST Systems, Inc. (a) 3,540 160,539
Forrester Research, Inc. (a) 100 1,895
GRIC Communications, Inc. (a) 8,700 29,145
Indra Sistemas SA 23,100 301,893
Inforte Corp. (a) 3,800 38,000
Maximus, Inc. (a) 1,000 35,000
MPS Group, Inc. (a) 10,900 121,208
Paychex, Inc. 25,500 907,800
Tis, Inc. 4,300 195,445
------------
IT Services Total 4,111,934
OFFICE ELECTRONICS - 0.4%
Canon, Inc. 10,000 516,853
Xerox Corp. (a) 108,373 1,578,995
------------
Office Electronics Total 2,095,848
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 2.9%
Altera Corp. (a) 4,480 91,616
Amkor Technology, Inc. (a) 7,920 115,870
Applied Micro Circuits Corp. (a) 41,700 239,775
ARM Holdings PLC 101,852 223,470
ARM Holdings PLC, ADR 11,200 73,024
Artisan Components, Inc. (a) 6,900 153,801
ASML Holding NV, N.Y. Registered
Shares (a) 40,265 738,057
August Technology Corp. (a) 5,600 84,000
Broadcom Corp., Class A (a) 8,400 329,028
Brooks Automation, Inc. (a) 5,500 115,390
DSP Group, Inc. (a) 2,500 64,325
Dupont Photomasks, Inc. (a) 2,100 48,846
Entegris, Inc. (a) 13,300 168,378
Exar Corp. (a) 3,000 55,500
See Accompanying Notes to Financial Statements.
31
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia Asset Allocation Fund
Shares Value ($)
------------ ------------
COMMON STOCKS - (CONTINUED)
INFORMATION TECHNOLOGY - (CONTINUED)
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - (CONTINUED)
Fairchild Semiconductor International,
Inc. (a) 5,980 143,699
FEI Co. (a) 4,000 87,400
FSI International, Inc. (a) 3,200 26,144
Integrated Circuit Systems, Inc. (a) 2,600 65,078
Intel Corp. (a) 134,160 3,649,152
IXYS Corp. (a) 12,400 116,560
Lam Research Corp. (a) 31,100 784,031
Lattice Semiconductor Corp. (a) 7,000 61,110
Linear Technology Corp. 11,500 425,730
Marvell Technology Group Ltd. (a) 9,375 422,344
Microchip Technology, Inc. 38,160 1,013,530
Mykrolis Corp. (a) 6,600 94,116
National Semiconductor Corp. (a) 2,600 115,518
NEC Electronics 1,900 145,754
Nikon Corp. 14,000 185,933
NVIDIA Corp. (a) 4,000 105,960
Pericom Semiconductor Corp. (a) 3,000 34,440
Silicon Image, Inc. (a) 15,500 159,650
Silicon Laboratories, Inc. (a) 12,200 645,136
Silicon Storage Technology, Inc. (a) 13,500 174,690
Skyworks Solutions, Inc. (a) 5,400 62,964
Taiwan Semiconductor Manufacturing
Co., Ltd., ADR (a) 97,988 1,022,995
Teradyne, Inc. (a) 5,960 142,027
Texas Instruments, Inc. 22,500 657,450
Transmeta Corp. (a) 16,391 64,908
United Microelectronics Corp., ADR (a) 17,700 92,040
Xilinx, Inc. (a) 18,040 685,520
Zoran Corp. (a) 2,300 39,928
------------
Semiconductors & Semiconductor
Equipment Total 13,724,887
SOFTWARE - 2.4%
Activision, Inc. (a) 6,700 105,994
Amdocs Ltd. (a) 26,230 728,932
BEA Systems, Inc. (a) 7,120 90,851
BMC Software, Inc. (a) 6,270 122,578
Captaris, Inc. (a) 8,100 44,550
Captiva Software Corp. (a) 8,200 113,488
Dassault Systemes SA 5,350 222,529
Electronic Arts, Inc. (a) 26,800 1,446,128
Epicor Software Corp. (a) 5,000 66,350
Fair Isaac Corp. 5,070 182,926
Group 1 Software, Inc. (a) 2,900 47,212
Hyperion Solutions Corp. (a) 1,600 66,292
Intuit, Inc. (a) 80 3,590
Lawson Software, Inc. (a) 3,800 31,540
Magma Design Automation, Inc. (a) 3,800 79,458
Manhattan Associates, Inc. (a) 5,100 141,780
Mercury Interactive Corp. (a) 14,520 650,496
Micromuse, Inc. (a) 12,300 95,940
Microsoft Corp. 149,787 3,740,181
Shares Value ($)
------------ ------------
MSC.Software Corp. (a) 5,000 44,050
Novell, Inc. (a) 9,930 113,003
OpenTV Corp. (a) 19,900 64,277
Oracle Corp. (a) 82,025 985,120
PeopleSoft, Inc. (a) 4,540 83,945
PLATO Learning, Inc. (a) 7,400 74,666
Reynolds & Reynolds Co., Class A 4,500 127,845
SAP AG, ADR 18,600 731,166
ScanSoft, Inc. (a) 6,100 34,099
Siebel Systems, Inc. (a) 9,250 106,468
Sybase, Inc. (a) 2,300 48,277
Symantec Corp. (a) 9,120 422,256
Synopsys, Inc. (a) 1,100 31,856
Take-Two Interactive Software, Inc. (a) 1,600 58,848
VERITAS Software Corp. (a) 12,845 345,659
Verity, Inc. (a) 4,200 57,414
------------
Software Total 11,309,764
------------
INFORMATION TECHNOLOGY TOTAL 55,814,083
MATERIALS - 2.9%
CHEMICALS - 1.2%
Air Products & Chemicals, Inc. 32,719 1,639,876
BASF AG 5,600 284,820
Cytec Industries, Inc. 1,500 53,355
Eastman Chemical Co. 3,100 132,308
Engelhard Corp. 3,200 95,648
H.B. Fuller Co. 1,700 48,348
Hercules, Inc. (a) 2,200 25,256
International Flavors & Fragrances, Inc. 5,800 205,900
Landec Corp. (a) 8,100 69,660
Lubrizol Corp. 4,900 154,301
MG Technologies AG 20,500 287,087
Minerals Technologies, Inc. 1,100 62,810
Potash Corp. of Saskatchewan, Inc. 800 66,536
PPG Industries, Inc. 1,900 110,770
Praxair, Inc. 41,200 1,529,344
Schulman (A.), Inc. 2,200 43,230
Sensient Technologies Corp. 2,200 41,074
Shin-Etsu Chemical Co., Ltd. 5,300 222,602
Stepan Co. 1,700 38,828
Syngenta AG 7,656 558,757
Yara International ASA (a) 28,500 206,952
------------
Chemicals Total 5,877,462
CONSTRUCTION MATERIALS - 0.1%
AMCOL International Corp. 4,200 73,290
Eagle Materials, Inc. 1,400 82,390
Siam Cement Public Co., Ltd., NVDR 88,850 511,660
------------
Construction Materials Total 667,340
CONTAINERS & PACKAGING - 0.2%
Aptargroup, Inc. 1,300 49,920
Crown Holdings, Inc. (a) 4,000 37,280
Greif, Inc., Class A 2,200 76,868
Jarden Corp. (a) 8,600 305,386
See Accompanying Notes to Financial Statements.
32
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia Asset Allocation Fund
Shares Value ($)
------------ ------------
COMMON STOCKS - (CONTINUED)
MATERIALS - (CONTINUED)
CONTAINERS & PACKAGING - (CONTINUED)
Packaging Corp. of America 5,500 124,080
Pactiv Corp. (a) 3,000 66,750
Smurfit-Stone Container Corp. (a) 4,380 77,044
Temple-Inland, Inc. 610 38,637
------------
Containers & Packaging Total 775,965
METALS & MINING - 0.7%
Alcoa, Inc. 40,700 1,411,883
BHP Billiton Ltd. 30,900 289,903
Carpenter Technology Corp. 3,100 101,928
IMCO Recycling, Inc. (a) 1,600 15,072
Metal Management, Inc. (a) 1,900 69,692
Peabody Energy Corp. 3,700 172,087
Phelps Dodge Corp. (a) 11,940 975,020
RTI International Metals, Inc. (a) 3,900 61,737
Steel Technologies, Inc. 7,500 144,900
------------
Metals & Mining Total 3,242,222
PAPER & FOREST PRODUCTS - 0.7%
Bowater, Inc. 4,110 179,319
Georgia-Pacific Corp. 5,000 168,450
Glatfelter 1,600 17,984
International Paper Co. 3,220 136,077
MeadWestvaco Corp. 47,832 1,353,167
Mercer International, Inc. 4,400 41,800
Schweitzer-Mauduit International, Inc. 800 25,840
Stora Enso Oyj, Class R 20,800 262,108
UPM-Kymmene Oyj 12,850 235,617
Weyerhaeuser Co. 13,744 900,232
------------
Paper & Forest Products Total 3,320,594
------------
MATERIALS TOTAL 13,883,583
TELECOMMUNICATION SERVICES - 2.4%
DIVERSIFIED TELECOMMUNICATION SERVICES - 1.7%
BellSouth Corp. 61,879 1,713,430
CenturyTel, Inc. 6,900 189,681
France Telecom SA 15,900 407,375
Nippon Telegraph & Telephone Corp 42 237,618
North Pittsburgh Systems, Inc. 2,300 46,299
Portugal Telecom SGPS, SA 27,800 311,317
Qwest Communications International,
Inc. (a) 1 4
SBC Communications, Inc. 66,292 1,626,806
Telecom Italia S.p.A. 204,000 640,158
Telefonaktiebolaget LM Ericsson, ADR 15,200 421,800
Telefonica SA (a) 39,407 596,964
Verizon Communications, Inc. 45,666 1,668,636
------------
Diversified Telecommunication Services Total 7,860,088
WIRELESS TELECOMMUNICATION SERVICES - 0.7%
American Tower Corp., Class A (a) 22,640 256,964
At Road, Inc. (a) 6,400 78,528
Crown Castle International Corp. (a) 28,405 358,755
Shares Value ($)
------------ ------------
Mobile Telesystems, ADR 2,000 263,000
Nextel Partners, Inc., Class A (a) 8,000 101,280
NTT DoCoMo, Inc. 295 650,621
Price Communications Corp. (a) 2,900 45,501
Telephone & Data Systems, Inc. 3,100 219,697
VimpelCom, ADR (a) 4,400 457,556
Vodafone Group PLC 452,250 1,073,564
------------
Wireless Telecommunication Services Total 3,505,466
------------
TELECOMMUNICATION SERVICES TOTAL 11,365,554
UTILITIES - 1.7%
ELECTRIC UTILITIES - 1.7%
American Electric Power Co., Inc. 33,351 1,097,915
Central Vermont Public Service Corp. 3,300 74,250
CH Energy Group, Inc. 2,200 107,998
Consolidated Edison, Inc. 38,174 1,683,473
E. ON AG 4,200 277,033
El Paso Electric Co. (a) 3,700 51,208
Entergy Corp. 16,046 954,737
Exelon Corp. 2,500 172,175
Maine & Maritimes Corp. 700 23,905
MGE Energy, Inc. 1,300 40,105
National Grid Transco PLC 56,600 448,732
Otter Tail Corp. 1,200 31,704
PPL Corp. 1,600 72,960
Progress Energy, Inc. 3,300 155,364
Public Power Corp. 11,100 279,203
Puget Energy, Inc. 2,600 58,162
Southern Co. 26,609 811,574
TXU Corp. 49,257 1,411,706
------------
Electric Utilities Total 7,752,204
GAS UTILITIES - 0.0%
Cascade Natural Gas Corp. 1,400 30,506
Northwest Natural Gas Co. 1,100 34,375
WGL Holdings, Inc. 1,200 36,120
------------
Gas Utilities Total 101,001
MULTI-UTILITIES & UNREGULATED POWER - 0.0%
Energy East Corp. 4,000 101,440
MDU Resources Group, Inc. 1,350 31,712
------------
Multi-Utilities & Unregulated Power Total 133,152
------------
UTILITIES TOTAL 7,986,357
TOTAL COMMON STOCKS
(Cost of $256,794,400) 309,435,744
Par ($)
------------
CORPORATE NOTES AND BONDS - 14.6%
Acetex Corp., Senior Notes,
10.875% 08/01/09 100,000 109,750
Airgas Inc.,
9.125% 10/01/11 250,000 283,750
See Accompanying Notes to Financial Statements.
33
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia Asset Allocation Fund
Par ($) Value ($)
------------ ------------
CORPORATE NOTES AND BONDS - (CONTINUED)
Allied Waste North America, Inc.,
Series B:
7.875% 01/01/09 29,000 30,160
9.250% 09/01/12 500,000 565,000
AmerisourceBergen Corp., Senior Note,
8.125% 09/01/08 300,000 334,500
Apogent Technologies, Inc., Senior
Subordinate Note,
6.500% 05/15/13 (b) 200,000 212,500
Arch Western Finance, Senior Note,
6.750% 07/01/13 (b) 350,000 374,500
Autonation, Inc.,
9.000% 08/01/08 (b) 205,000 239,337
Ball Corp.,
6.875% 12/15/12 475,000 513,594
Bank One Corp.,
6.500% 02/01/06 1,700,000 1,843,616
Cascades, Inc., Senior Note,
7.250% 02/15/13 (b) 200,000 209,500
Chesapeake Energy Corp.,
8.125% 04/01/11 150,000 165,375
Chesapeake Energy Corp., Senior Note,
7.500% 09/15/13 (b) 300,000 330,000
Cinemark USA, Inc., Senior
Subordinate Note,
9.000% 02/01/13 (b) 300,000 324,000
Citicorp Lease Pass Thru Certificates,
Series 1999-1, Class A-2,
8.040% 12/15/19 (b) 1,900,000 2,299,570
Constellation Brands, Inc., Series B,
8.125% 01/15/12 450,000 497,250
Corrections Corporation of America,
Senior Note,
7.500% 05/01/11 325,000 343,687
Cott Beverages USA, Inc.,
8.000% 12/15/11 450,000 497,250
Couche Tard US Finance,
7.500% 12/15/13 (b) 160,000 170,800
Credit Suisse First Boston USA, Inc.,
5.875% 08/01/06 1,500,000 1,623,495
Devon Financing Corp. ULC:
6.875% 09/30/11 1,150,000 1,326,801
7.875% 09/30/31 250,000 309,675
Dex Media East LLC/Dex Media
East Finance Co.,
Senior Subordinate Note,
12.125% 11/15/12 (b) 300,000 350,250
DirecTV Holdings LLC, Senior Note,
8.375% 03/15/13 (b) 375,000 428,438
Dominion Resources, Inc.,
6.300% 03/15/33 625,000 648,162
Echostar DBS Corp., Senior Note,
5.750% 10/01/08 (b) 400,000 412,000
Equistar Chemicals LP/Equistar
Funding Corp.:
10.130% 09/01/08 25,000 26,875
10.625% 05/01/11 (b) 75,000 80,625
Par ($) Value ($)
------------ ------------
Ethyl Corp., Senior Note,
8.875% 05/01/10 (b) 155,000 167,400
Extended Stay America, Inc.,
Senior Subordinate Note,
9.150% 03/15/08 335,000 346,893
FirstEnergy Corp., Series A,
5.500% 11/15/06 1,850,000 1,967,401
Florida Windstorm Underwriting
Association, Series 1999-A,
7.125% 02/25/19 (b) 1,400,000 1,713,236
Ford Motor Credit Co.,
7.375% 02/01/11 2,125,000 2,318,779
Gannett Co., Inc.,
5.500% 04/01/07 1,000,000 1,086,110
General Motors Corp., Senior Note:
6.875% 08/28/12 850,000 920,652
7.125% 07/15/13 250,000 272,755
Goldman Sachs Group, Inc.,
6.600% 01/15/12 2,000,000 2,291,440
Grant Prideco, Inc., Series B,
9.625% 12/01/07 405,000 461,700
Group 1 Automotive, Inc.,
8.250% 08/15/13 80,000 88,200
Harrah's Operating Co., Inc.,
7.875% 12/15/05 350,000 378,000
Hasbro, Inc.,
6.150% 07/15/08 150,000 160,500
HCA, Inc.,
7.130% 06/01/06 1,450,000 1,567,972
Health Care, REIT Inc.,
7.500% 08/15/07 200,000 224,866
Houghton Mifflin Co., Senior Note,
9.875% 02/01/13 (b) 105,000 107,888
Household Finance Corp.,
5.875% 02/01/09 1,100,000 1,219,328
HSBC Capital Funding LP/Jersey
Channel Islands,
9.547% 12/31/49 (b) 800,000 1,038,532
Illinois St. Taxable Pension,
5.100% 06/01/33 650,000 628,030
International Lease Finance Corp.,
6.375% 03/15/09 2,250,000 2,537,528
Iron Mountain Inc.,
8.625% 04/01/13 450,000 490,500
iStar Financial, Inc., Senior Note:
5.125% 04/01/11 (b) 25,000 25,062
7.000% 03/15/08 125,000 135,000
8.750% 08/15/08 120,000 136,050
Jefferson Smurfit Corp.,
8.250% 10/01/12 200,000 217,000
K&F Industries, Inc., Series B,
Senior Subordinate Note,
9.625% 12/15/10 215,000 239,725
KB Home, Senior Subordinate Note,
8.625% 12/15/08 325,000 365,625
Kennametal, Inc., Senior Note,
7.200% 06/15/12 400,000 444,648
See Accompanying Notes to Financial Statements.
34
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia Asset Allocation Fund
Par ($) Value ($)
------------ ------------
CORPORATE NOTES AND BONDS - (CONTINUED)
Key Energy Services, Inc., Senior Note:
6.375% 05/01/13 160,000 164,000
8.375% 03/01/08 30,000 31,800
L-3 Communications Corp.,
7.625% 06/15/12 450,000 495,000
Lamar Media Corp., Senior
Subordinate Note,
7.250% 01/01/13 (b) 450,000 488,250
Lear Corp, Series B,
8.110% 05/15/09 400,000 475,000
Lin TV Corp., Senior Subordinate Note,
6.500% 05/15/13 (b) 275,000 283,594
MacDermid, Inc.,
9.125% 07/15/11 130,000 146,250
MGM Grand, Inc.,
9.750% 06/01/07 450,000 522,000
Nailco Co.,
7.750% 11/15/11 (b) 115,000 119,600
Nexen, Inc.,
7.875% 03/15/32 750,000 948,210
Nextel Communications, Inc.,
Senior Note:
7.375% 08/01/15 150,000 162,188
9.375% 11/15/09 300,000 325,875
Offshore Logistic, Inc.,
6.125% 06/15/13 75,000 74,625
Omnicare Inc., Series B,
8.125% 03/15/11 375,000 418,125
Owens-Illinois, Inc., Senior Note,
7.350% 05/15/08 255,000 251,175
Park Place Entertainment Corp.,
Senior Subordinate Note,
9.375% 02/15/07 425,000 478,125
Peabody Energy Corp., Series B:
5.875% 04/15/16 75,000 75,375
6.875% 03/15/13 275,000 297,688
Pemex Project Fund Master Trust,
7.875% 02/01/09 550,000 632,500
Pride International, Inc., Senior Note,
10.000% 06/01/09 400,000 425,500
Procter & Gamble Co.,
4.750% 06/15/07 1,100,000 1,178,430
Province Healthcare Co., Senior
Subordinate Note,
7.500% 06/01/13 225,000 231,188
Prudential Insurance Company
of America,
7.650% 07/01/07 (b) 2,000,000 2,281,960
Public Service Electric Gas Co.,
4.000% 11/01/08 1,125,000 1,160,336
PSE&G Power LLC,
5.500% 12/01/15 650,000 664,632
R.H. Donnelley Finance Corp.,
Senior Subordinate Note,
10.875% 12/15/12 (b) 400,000 478,000
Par ($) Value ($)
------------ ------------
Rabobank Capital Fund II,
5.260% 12/31/49 (b) 1,425,000 1,479,235
Raytheon Co.,
8.300% 03/01/10 1,750,000 2,135,175
Rogers Cable Inc.,
7.875% 05/01/12 400,000 460,708
Royal Caribbean Cruises Ltd.:
6.875% 12/01/13 100,000 105,250
8.000% 05/15/10 15,000 16,838
8.750% 02/02/11 45,000 52,650
Russel Metals, Inc.,
6.875% 03/01/14 (b) 50,000 51,250
Scotts Co.,
6.625% 11/15/13 (b) 150,000 157,500
Select Medical Corp.,
Senior Subordinate Note,
9.500% 06/15/09 350,000 385,875
Silgan Corp., Senior Subordinate
Debenture,
6.750% 11/15/13 350,000 361,375
Sinclair Broadcast Group, Inc.,
8.750% 12/15/11 245,000 269,500
Six Flags, Inc.:
9.500% 02/01/09 25,000 26,375
9.625% 06/01/14 100,000 105,000
Speedway Motorsports, Inc., Senior
Subordinate Note,
6.750% 06/01/13 (b) 235,000 249,100
Sprint Capital Corp.,
6.125% 11/15/08 1,025,000 1,130,298
Southern Power Co.,
6.250% 06/15/12 665,000 737,911
Starwood Hotels & Resorts
Worldwide, Inc.,
7.875% 05/01/12 225,000 253,688
Station Casinos, Inc., Senior
Subordinate Note,
6.500% 02/01/14 (b) 500,000 500,625
Stone Container Corp., Senior Note,
8.375% 07/01/12 125,000 136,250
Suburban Propane Partners,
6.875% 12/15/13 (b) 145,000 150,800
Sun International Hotels Ltd.,
8.875% 08/15/11 30,000 33,300
Synagro Technologies, Inc., Senior
Subordinate Note,
9.500% 04/01/09 125,000 136,250
Teekay Shipping Corp., Senior Note,
8.875% 07/15/11 135,000 156,600
Tenet Healthcare Corp., Senior Note,
5.375% 11/15/06 785,000 741,825
Toll Corp.,
8.250% 12/01/11 365,000 412,450
Transdigm, Inc.,
8.375% 07/15/11 250,000 265,000
Triad Hospitals, Inc., Series B,
8.750% 05/01/09 350,000 382,375
See Accompanying Notes to Financial Statements.
35
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia Asset Allocation Fund
Par ($) Value ($)
------------ ------------
CORPORATE NOTES AND BONDS - (CONTINUED)
Tricon Global Restaurants, Inc.,
8.875% 04/15/11 105,000 131,512
United Rentals North America, Inc.:
7.000% 02/15/14 150,000 141,000
7.750% 11/15/13 250,000 245,000
Universal Compression, Inc.,
Senior Note,
7.250% 05/15/10 180,000 193,500
Verizon Global Funding Corp.,
7.750% 12/01/30 1,300,000 1,569,295
Verizon Wireless Capital LLC,
5.375% 12/15/06 500,000 538,765
Vintage Petroleum, Inc.,
7.875% 05/15/11 250,000 269,375
Washington Mutual Financial Corp.,
6.250% 05/15/06 1,000,000 1,088,130
Wells Fargo Financial, Inc.,
6.125% 02/15/06 830,000 895,047
Westinghouse Air Brake, Senior Note,
6.875% 07/31/13 (b) 145,000 155,150
Westport Resources Corp.,
8.250% 11/01/11 475,000 528,437
Westvaco Corp.,
8.200% 01/15/30 1,290,000 1,581,566
WorldCom, Inc.,
8.250% 05/15/31 (c) 400,000 136,000
Wyeth,
6.500% 02/01/34 650,000 688,370
XTO Energy, Inc., Senior Note,
7.500% 04/15/12 420,000 498,313
Yum! Brands, Inc., Senior Note,
7.700% 07/01/12 305,000 363,712
------------
TOTAL CORPORATE NOTES AND BONDS
(Cost of $65,153,320) 68,827,081
MORTGAGE-BACKED SECURITIES - 11.3%
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 7.4%
5.000% 01/01/18-08/01/33 12,233,051 12,490,980
5.500% 05/01/16-10/01/33 12,887,834 13,248,433
6.000% 01/01/09-06/01/14 554,886 585,376
6.120% 10/01/08 2,339,965 2,361,013
6.500% 03/01/11-10/01/32 3,649,898 3,835,345
7.000% 03/01/15-07/01/32 1,263,959 1,343,906
7.500% 06/01/15-08/01/31 583,292 625,186
8.000% 12/01/29-07/01/31 304,400 329,634
------------
Federal National Mortgage Association Total 34,819,873
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 1.1%
6.000% 04/15/13-01/15/29 877,207 919,299
6.500% 05/15/13-07/15/31 2,195,247 2,327,408
7.000% 11/15/13-06/15/31 1,113,400 1,194,040
7.500% 06/15/23-09/15/29 401,156 431,861
8.000% 07/15/25 99,052 108,734
Par ($) Value ($)
------------ ------------
8.500% 12/15/30 17,833 19,514
9.000% 12/15/17 85,227 95,318
------------
Government National Mortgage
Association Total 5,096,174
FEDERAL HOME LOAN MORTGAGE CORPORATION - 0.7%
6.500% 02/01/11-07/01/31 2,122,895 2,243,803
7.000% 07/01/28-08/01/31 905,114 960,167
7.500% 07/01/15-01/01/30 261,706 281,309
8.000% 09/01/15 121,016 130,153
------------
Federal Home Loan Mortgage Corporation Total 3,615,432
OTHER MORTGAGE-BACKED SECURITIES - 2.1%
American Mortgage Trust,
8.445% 09/27/22 28,885 25,996
Federal National Mortgage Association,
Series 2003-24, Class LC,
5.000% 12/25/15 1,200,000 1,241,080
First Union Chase Mortgage,
Series 1999-C2, Class A-2,
6.645% 06/15/31 450,000 511,595
GS Mortgage Securities Corp. II,
Series 1998-C1, Class A-2,
6.620% 10/18/30 2,000,000 2,247,236
J.P. Morgan Commercial Mortgage
Finance Corp.,
Series 1999-C7, Class A-2,
6.507% 10/15/35 1,600,000 1,810,941
LB-UBS Commercial Mortgage Trust,
Series 2000-C5, Class A-2,
6.510% 12/15/26 1,000,000 1,149,896
Rural Housing Trust,
Series 1987-1, Class D, CMO,
6.330% 04/01/26 154,932 155,122
Wachovia Bank Commercial
Mortgage Trust,
Series 2003-C5, Class A-2,
3.989% 06/15/35 3,000,000 2,940,120
------------
Other Mortgage-Backed Securities Total 10,081,986
------------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost of $51,558,712) 53,613,465
ASSET-BACKED SECURITIES - 3.1%
California Infrastructure,
Series 1997-1, Class A-7,
6.420% 12/26/09 2,000,000 2,230,160
Chase Manhattan Auto Owner Trust,
Series 2001-B, Class A-4,
3.800% 05/15/08 1,200,000 1,225,308
Chemical Bank Master Credit
Card Trust I,
Series 1996-2, Class A,
5.980% 09/15/08 1,550,000 1,641,435
Citibank Credit Card Issuance Trust,
Series 2002-A, Class A-1,
4.950% 02/09/09 225,000 240,741
See Accompanying Notes to Financial Statements.
36
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia Asset Allocation Fund
Par ($) Value ($)
------------ ------------
ASSET-BACKED SECURITIES - (CONTINUED)
Continental Airlines, Inc.,
Pass Thru Certificates,
7.461% 04/01/15 831,352 814,725
Federal Express Corp.,
Pass Thru Certificates,
7.530% 09/15/09 532,002 577,983
Honda Auto Receivables Owner Trust,
Series 2002-3, Class A-3,
3.000% 05/18/06 843,189 850,929
MBNA Master Credit Card Trust,
Series 1999-M, Class A,
6.600% 04/16/07 1,200,000 1,237,776
Origen Manufactured Housing,
Series 2004-A, Class A-2,
3.380% 08/15/17 870,000 874,440
Standard Credit Card Master Trust,
Series 1995-9, Class A,
6.550% 10/07/07 2,595,000 2,772,420
United Airlines Pass Thru Certificates:
Series 1991, Class A-1
9.200% 03/22/08 (c) 1,014,043 446,178
Series 2000-2, Class A-1
7.032% 10/01/10 588,020 532,159
Wells Fargo Auto Trust,
Series 2001-A, Class A-4,
5.070% 03/15/08 1,353,616 1,367,409
------------
TOTAL ASSET-BACKED SECURITIES
(Cost of $15,290,146) 14,811,663
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 2.8%
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 1.1%
6.625% 09/15/09 4,325,000 5,045,286
------------
Federal National Mortgage Association Total 5,045,286
U.S. TREASURY BONDS - 1.7%
5.000% 02/15/11 730,000 805,851
5.375% 02/15/31 3,240,000 3,531,600
6.125% 08/15/29 425,000 503,791
6.250% 08/15/23 1,200,000 1,426,828
7.500% 11/15/16 950,000 1,252,441
8.875% 08/15/17 420,000 615,431
------------
U.S. Treasury Bonds Total 8,135,942
TOTAL U.S. GOVERNMENT
AND AGENCY OBLIGATIONS
(Cost of $12,140,177) 13,181,228
------------
Shares
------------
PREFERRED STOCK - 0.2%
CONSUMER DISCRETIONARY - 0.2%
MEDIA - 0.2%
News Corp., Ltd.
(Cost of $928,356) 28,100 891,051
------------
Shares Value ($)
------------ ------------
INVESTMENT MANAGEMENT COMPANIES - 0.1%
iShares MSCI Japan Index Fund 13,430 145,984
iShares Russell 1000 Value Index Fund 7,550 452,320
------------
TOTAL INVESTMENT
MANAGEMENT COMPANIES
(Cost of $565,789) 598,304
INCOME DEPOSIT SECURITY - 0.0%
CONSUMER DISCRETIONARY - 0.0%
HOTELS, RESTAURANTS & LEISURE - 0.0%
Volume Services America Holdings, Inc.
(Cost of $58,530) 3,900 64,350
------------
Par ($)
------------
SHORT-TERM OBLIGATIONS - 2.2%
Repurchase agreement with State
Street Bank & Trust Co., dated
03/31/04, due 04/01/04 at 0.930%,
collateralized by U.S. Treasury
Notes with various maturities to
05/15/08, market value $1,829,262
(repurchase proceeds $1,780,046)
(Cost of $1,780,000) 1,780,000 1,780,000
------------
Repurchase agreement with State
Street Bank & Trust Co., dated
03/31/04, due 04/01/04 at 0.960%,
collateralized by U.S. Treasury
Bonds with various maturities to
02/15/31, market value $8,593,904
(repurchase proceeds $8,411,224)
(Cost of $8,411,000) 8,411,000 8,411,000
------------
TOTAL INVESTMENTS - 99.8%
(COST OF $412,680,430) (D) 471,613,886
OTHER ASSETS & LIABILITIES, NET - 0.2% 784,225
NET ASSETS - 100.0% 472,398,111
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 March 31, 2004, the value of
these securities amounted to $16,139,962 which represents 3.4% of net
assets.
(c) This issuer is in default of certain debt covenants. Income is not being
accrued.
(d) Cost for federal income tax is $413,230,555.
ACRONYM NAME
------- -----
ADR American Depositary Receipt
CMO Collateralized Mortgage Obligation
GDR Global Depositary Receipt
NVDR Non-Voting Depositary Receipt
REIT Real Estate Investment Trust
See Accompanying Notes to Financial Statements.
37
INVESTMENT PORTFOLIO____________________________________________________________
March 31, 2004 (Unaudited) Columbia Large Cap Growth Fund
Shares Value ($)
------------ ------------
COMMON STOCKS - 99.6%
CONSUMER DISCRETIONARY - 14.1%
HOTELS, RESTAURANTS & LEISURE - 0.4%
Yum! Brands, Inc. (a) 114,200 4,338,458
------------
Hotels, Restaurants & Leisure Total 4,338,458
INTERNET & CATALOG RETAIL - 0.8%
eBay, Inc. (a) 116,400 8,070,012
------------
Internet & Catalog Retail Total 8,070,012
MEDIA - 3.1%
Clear Channel Communications, Inc. 116,100 4,916,835
Omnicom Group, Inc. 117,900 9,461,475
Viacom, Inc., Class A 252,100 9,884,841
Walt Disney Co. 156,200 3,903,438
XM Satellite Radio Holdings, Inc.,
Class A (a) 110,000 3,080,000
------------
Media Total 31,246,589
MULTILINE RETAIL - 2.3%
Kohl's Corp. (a) 234,000 11,309,220
Target Corp. 247,300 11,138,392
------------
Multiline Retail Total 22,447,612
SPECIALTY RETAIL - 6.7%
Bed Bath & Beyond, Inc. (a) 287,500 12,006,000
Best Buy Co., Inc. 186,830 9,662,848
Chico's FAS, Inc. (a) 198,100 9,191,840
Home Depot, Inc. 268,600 10,034,896
Lowe's Companies, Inc. 287,600 16,142,988
Staples, Inc. (a) 379,300 9,630,427
------------
Specialty Retail Total 66,668,999
TEXTILES, APPAREL & LUXURY GOODS - 0.8%
Coach, Inc. (a) 203,500 8,341,465
------------
Textiles, Apparel & Luxury Goods Total 8,341,465
------------
CONSUMER DISCRETIONARY TOTAL 141,113,135
CONSUMER STAPLES - 11.6%
BEVERAGES - 3.3%
Coca-Cola Co. 355,100 17,861,530
PepsiCo, Inc. 277,600 14,948,760
------------
Beverages Total 32,810,290
FOOD & STAPLES RETAILING - 3.7%
Costco Wholesale Corp. (a) 216,700 8,139,252
Sysco Corp. 216,400 8,450,420
Wal-Mart Stores, Inc. 341,800 20,402,042
------------
Food & Staples Retailing 36,991,714
FOOD PRODUCTS - 0.8%
Bunge Ltd. 189,500 7,621,690
------------
Food Products Total 7,621,690
Shares Value ($)
------------ ------------
HOUSEHOLD PRODUCTS - 1.3%
Procter & Gamble Co. 125,000 13,110,000
------------
Household Products Total 13,110,000
PERSONAL PRODUCTS - 1.4%
Alberto-Culver Co., Inc., Class B 331,200 14,529,744
------------
Personal Products Total 14,529,744
TOBACCO - 1.1%
Altria Group, Inc. 194,700 10,601,415
------------
Tobacco Total 10,601,415
------------
CONSUMER STAPLES TOTAL 115,664,853
ENERGY - 0.5%
ENERGY EQUIPMENT & SERVICES - 0.5%
Noble Corp. (a) 19,800 760,716
Schlumberger Ltd. 62,900 4,016,165
------------
Energy Equipment & Services Total 4,776,881
------------
ENERGY TOTAL 4,776,881
FINANCIALS - 4.9%
CAPITAL MARKETS - 0.8%
Merrill Lynch & Co., Inc. 139,500 8,308,620
------------
Capital Markets Total 8,308,620
COMMERCIAL BANKS - 0.7%
Charter One Financial, Inc. 213,200 7,538,752
------------
Commercial Banks Total 7,538,752
CONSUMER FINANCE - 1.4%
American Express Co. 100,300 5,200,555
MBNA Corp. 303,600 8,388,468
------------
Consumer Finance Total 13,589,023
DIVERSIFIED FINANCIAL SERVICES - 0.5%
Citigroup, Inc. 101,100 5,226,870
------------
Diversified Financial Services Total 5,226,870
INSURANCE - 1.0%
American International Group, Inc. 69,100 4,930,285
Progressive Corp. 55,800 4,888,080
------------
Insurance Total 9,818,365
THRIFTS & MORTGAGE FINANCE - 0.5%
Fannie Mae 67,500 5,018,625
------------
Thrifts & Mortgage Finance Total 5,018,625
------------
FINANCIALS TOTAL 49,500,255
HEALTH CARE - 19.3%
BIOTECHNOLOGY - 3.6%
Amgen, Inc. (a) 330,800 19,242,636
Gilead Sciences, Inc. (a) 225,700 12,587,289
Martek Biosciences Corp. (a) 83,700 4,770,900
------------
Biotechnology Total 36,600,825
See Accompanying Notes to Financial Statements.
38
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia Large Cap Growth Fund
Shares Value ($)
------------ ------------
COMMON STOCKS - (CONTINUED)
HEALTH CARE - (CONTINUED)
HEALTH CARE EQUIPMENT & SUPPLIES - 6.6%
Alcon, Inc. 175,300 11,096,490
Boston Scientific Corp. (a) 370,600 15,706,028
St. Jude Medical, Inc. (a) 176,100 12,696,810
Varian Medical Systems, Inc. (a) 170,800 14,741,748
Zimmer Holdings, Inc. (a) 156,400 11,539,192
------------
Health Care Equipment & Supplies Total 65,780,268
HEALTH CARE PROVIDERS & SERVICES - 2.1%
Caremark Rx, Inc. (a) 636,200 21,153,650
------------
Health Care Providers & Services Total 21,153,650
PHARMACEUTICALS - 7.0%
Pfizer, Inc. 1,311,900 45,982,095
Teva Pharmaceutical Industries
Ltd., ADR 378,600 24,007,026
------------
Pharmaceuticals Total 69,989,121
------------
HEALTH CARE TOTAL 193,523,864
INDUSTRIALS - 12.0%
AEROSPACE & DEFENSE - 0.9%
United Technologies Corp. 103,800 8,957,940
------------
Aerospace & Defense Total 8,957,940
COMMERCIAL SERVICES & SUPPLIES - 1.3%
Cendant Corp. 547,700 13,358,403
------------
Commerical Services & Supplies Total 13,358,403
INDUSTRIAL CONGLOMERATES - 8.7%
3M Co. 154,000 12,607,980
General Electric Co. 1,765,900 53,895,268
Tyco International Ltd. 711,140 20,374,161
------------
Industrial Conglomerates Total 86,877,409
MACHINERY - 1.1%
ITT Industries, Inc. 148,100 11,304,473
------------
Machinery Total 11,304,473
------------
INDUSTRIALS TOTAL 120,498,225
INFORMATION TECHNOLOGY - 32.2%
COMMUNICATIONS EQUIPMENT - 5.4%
Advanced Fibre Communications,
Inc. (a) 189,000 4,163,670
Cisco Systems, Inc. (a) 1,567,400 36,865,248
Juniper Networks, Inc. (a) 117,500 3,056,175
QUALCOMM, Inc. 154,500 10,261,890
------------
Communications Equipment Total 54,346,983
COMPUTERS & PERIPHERALS - 2.9%
Dell, Inc. (a) 373,600 12,560,432
EMC Corp. (a) 643,400 8,756,674
International Business Machines Corp. 80,200 7,365,568
------------
Computers & Peripherals Total 28,682,674
Shares Value ($)
------------ ------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.5%
Agilent Technologies, Inc. (a) 280,300 8,865,889
Flextronics International Ltd. (a) 346,000 5,958,120
------------
Electronic Equipment & Instruments Total 14,824,009
INTERNET SOFTWARE & SERVICES - 0.7%
Yahoo!, Inc. (a) 138,600 6,734,574
------------
Internet Software & Services Total 6,734,574
IT SERVICES - 1.9%
Cognizant Technology Solutions
Corp. (a) 208,500 9,434,625
Paychex, Inc. 272,900 9,715,240
------------
IT Services Total 19,149,865
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 11.5%
Applied Micro Circuits Corp. (a) 424,600 2,441,450
ASML Holding NV, N.Y. Registered
Shares (a) 340,200 6,235,866
Broadcom Corp., Class A (a) 87,300 3,419,541
Intel Corp. 1,419,400 38,607,680
Lam Research Corp. (a) 317,000 7,991,570
Linear Technology Corp. 121,200 4,486,824
Marvell Technology Group Ltd. (a) 97,300 4,383,365
Microchip Technology, Inc. 352,500 9,362,400
Samsung Electronics Co., Ltd., GDR (b) 53,500 13,241,250
Silicon Laboratories, Inc. (a) 124,000 6,557,120
Taiwan Semiconductor Manufacturing
Co., Ltd., ADR (a) 509,800 5,322,312
Texas Instruments, Inc. 229,200 6,697,224
Xilinx, Inc. (a) 183,800 6,984,400
------------
Semiconductors & Semiconductor
Equipment Total 115,731,002
SOFTWARE - 8.3%
Amdocs Ltd. (a) 200,300 5,566,337
Electronic Arts, Inc. (a) 278,100 15,006,276
Mercury Interactive Corp. (a) 119,000 5,331,200
Microsoft Corp. 1,361,700 34,001,649
Oracle Corp. (a) 839,500 10,082,395
SAP AG, ADR 191,900 7,543,589
Symantec Corp. (a) 67,400 3,120,620
VERITAS Software Corp. (a) 84,700 2,279,277
------------
Software Total 82,931,343
------------
INFORMATION TECHNOLOGY TOTAL 322,400,450
MATERIALS - 3.9%
CHEMICALS - 1.4%
Praxair, Inc. 379,300 14,079,616
------------
Chemicals Total 14,079,616
METALS & MINING - 2.5%
Alcoa, Inc. 437,800 15,187,282
Phelps Dodge Corp. (a) 121,960 9,959,253
------------
Metals & Mining Total 25,146,535
------------
MATERIALS TOTAL 39,226,151
See Accompanying Notes to Financial Statements.
39
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia Large Cap Growth Fund
Shares Value ($)
------------ ------------
COMMON STOCKS - (CONTINUED)
TELECOMMUNICATION SERVICES - 1.1%
WIRELESS TELECOMMUNICATION SERVICES - 1.1%
American Tower Corp., Class A (a) 232,500 2,638,875
Crown Castle International Corp. (a) 290,200 3,665,226
Mobile Telesystems, ADR 21,700 2,853,550
VimpelCom, ADR (a) 13,200 1,372,668
------------
Wireless Telecommunication Services Total 10,530,319
------------
TELECOMMUNICATION SERVICES TOTAL 10,530,319
TOTAL COMMON STOCKS
(Cost of $832,080,059) 997,234,133
PREFERRED STOCK - 0.5%
CONSUMER DISCRETIONARY - 0.5%
MEDIA - 0.5%
News Corp., Ltd., ADR
(Cost of $5,259,996) 159,800 5,067,258
------------
Par ($)
------------
Short-Term Obligation - 0.6%
Repurchase agreement with State
Street Bank & Trust Co., dated 03/31/04,
due 04/01/04 at 0.960%, collateralized
by a U.S. Treasury Note maturing
05/15/08, market value of $6,022,974
(repurchase proceeds $5,900,157)
(Cost of $5,900,000) 5,900,000 5,900,000
------------
TOTAL INVESTMENTS - 100.7%
(COST OF $843,240,055) (c) 1,008,201,391
OTHER ASSETS & LIABILITIES, NET - (0.7%) (7,363,421)
NET ASSETS - 100.0% 1,000,837,970
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 March 31, 2004, the value of
this security amounted to $13,241,250 which represents 1.3% of net assets.
(c) Cost for both financial statement and federal income tax purposes is the
same.
ACRONYM NAME
------- ----
ADR American Depositary Receipt
GDR Global Depositary Receipt
See Accompanying Notes to Financial Statements.
40
INVESTMENT PORTFOLIO____________________________________________________________
March 31, 2004 (Unaudited) Columbia Disciplined Value Fund
Shares Value ($)
------------ ------------
COMMON STOCKS - 99.2%
CONSUMER DISCRETIONARY - 12.4%
AUTOMOBILES - 3.6%
Ford Motor Co. 407,400 5,528,418
General Motors Corp. 208,300 9,810,930
------------
Automobiles Total 15,339,348
LEISURE EQUIPMENT & PRODUCTS - 2.3%
Brunswick Corp. 139,000 5,675,370
Mattel, Inc. 226,500 4,176,660
------------
Leisure Equipment & Products Total 9,852,030
MEDIA - 3.2%
Comcast Corp., Class A (a) 144,900 4,164,426
Regal Entertainment Group, Class A 155,700 3,422,286
Time Warner, Inc. (a) 356,300 6,007,218
------------
Media Total 13,593,930
MULTILINE RETAIL - 1.7%
Saks, Inc. (a) 186,500 3,282,400
Sears Roebuck and Co. 90,400 3,883,584
------------
Multiline Retail Total 7,165,984
SPECIALTY RETAIL - 0.9%
Toys `R' US, Inc. (a) 238,000 3,998,400
------------
Specialty Retail Total 3,998,400
TEXTILES, APPAREL & LUXURY GOODS - 0.7%
Jones Apparel Group, Inc. 84,200 3,043,830
------------
Textiles, Apparel & Luxury Goods Total 3,043,830
------------
CONSUMER DISCRETIONARY TOTAL 52,993,522
CONSUMER STAPLES - 8.8%
BEVERAGES - 2.8%
Coca-Cola Co. 239,900 12,066,970
------------
Beverages Total 12,066,970
FOOD & STAPLES RETAILING - 1.3%
Costco Wholesale Corp. (a) 58,800 2,208,528
Kroger Co. (a) 192,700 3,206,528
------------
Food & Staples Retailing Total 5,415,056
FOOD PRODUCTS - 1.0%
H.J. Heinz Co. 111,300 4,150,377
------------
Food Products Total 4,150,377
HOUSEHOLD PRODUCTS - 0.9%
Procter & Gamble Co. 38,300 4,016,904
------------
Household Products Total 4,016,904
PERSONAL PRODUCTS - 2.8%
Gillette Co. 307,700 12,031,070
------------
Personal Products Total 12,031,070
------------
CONSUMER STAPLES TOTAL 37,680,377
Shares Value ($)
------------ ------------
ENERGY - 10.9%
OIL & GAS - 10.9%
ChevronTexaco Corp. 203,000 17,819,340
Devon Energy Corp. 91,700 5,332,355
Exxon Mobil Corp. 505,400 21,019,586
Valero Energy Corp. 43,900 2,632,244
------------
Oil & Gas Total 46,803,525
------------
ENERGY TOTAL 46,803,525
FINANCIALS - 31.4%
CAPITAL MARKETS - 5.4%
A.G. Edwards, Inc. 100,000 3,912,000
J.P. Morgan Chase & Co. 344,300 14,443,385
Lehman Brothers Holdings, Inc. 55,400 4,590,998
------------
Capital Markets Total 22,946,383
COMMERCIAL BANKS - 9.2%
City National Corp. 55,300 3,312,470
Comerica, Inc. 160,400 8,712,928
Commerce Bancorp, Inc. 36,300 2,391,444
PNC Financial Services Group, Inc. 108,800 6,029,696
U.S. Bancorp 311,200 8,604,680
Wachovia Corp. 219,500 10,316,500
------------
Commercial Banks Total 39,367,718
CONSUMER FINANCE - 0.9%
MBNA Corp. 139,000 3,840,570
------------
Consumer Finance Total 3,840,570
DIVERSIFIED FINANCIAL SERVICES - 5.0%
Citigroup, Inc. 417,600 21,589,920
------------
Diversified Financial Services Total 21,589,920
INSURANCE - 7.5%
Allstate Corp. 51,200 2,327,552
Ambac Financial Group, Inc. 106,700 7,872,326
Chubb Corp. 152,800 10,625,712
First American Corp. 70,700 2,150,694
John Hancock Financial Services, Inc. 166,000 7,252,540
MBIA, Inc. 32,600 2,044,020
------------
Insurance Total 32,272,844
REAL ESTATE - 1.4%
Rayonier, Inc., REIT 133,697 5,843,896
------------
Real Estate Total 5,843,896
THRIFTS & MORTGAGE FINANCE - 2.0%
Freddie Mac 36,500 2,155,690
Washington Mutual, Inc. 147,200 6,286,912
------------
Thrifts & Mortgage Finance 8,442,602
------------
FINANCIALS TOTAL 134,303,933
See Accompanying Notes to Financial Statements.
41
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia Disciplined Value Fund
Shares Value ($)
------------ ------------
COMMON STOCKS - (CONTINUED)
HEALTH CARE - 4.1%
HEALTH CARE PROVIDERS & SERVICES - 1.3%
CIGNA Corp. 94,400 5,571,488
------------
Health Care Providers & Services Total 5,571,488
PHARMACEUTICALS - 2.8%
Merck & Co., Inc. 220,900 9,761,571
Watson Pharmaceuticals, Inc. (a) 54,100 2,314,939
------------
Pharmaceuticals Total 12,076,510
------------
HEALTH CARE TOTAL 17,647,998
INDUSTRIALS - 7.1%
AEROSPACE & DEFENSE - 2.8%
Northrop Grumman Corp. 81,200 7,991,704
United Technologies Corp. 47,300 4,081,990
------------
Aerospace & Defense Total 12,073,694
AIR FREIGHT & LOGISTICS - 1.2%
FedEx Corp. 69,100 5,193,556
------------
Air Freight & Logistics Total 5,193,556
COMMERCIAL SERVICES & SUPPLIES - 2.2%
Cendant Corp. 386,600 9,429,174
------------
Commerical Services & Supplies Total 9,429,174
INDUSTRIAL CONGLOMERATES - 0.9%
Textron, Inc. 68,500 3,640,775
------------
Industrial Conglomerates Total 3,640,775
------------
INDUSTRIALS TOTAL 30,337,199
INFORMATION TECHNOLOGY - 5.8%
COMPUTERS & PERIPHERALS - 4.0%
Hewlett-Packard Co. 273,700 6,251,308
International Business Machines Corp. 118,500 10,883,040
------------
Computers & Peripherals Total 17,134,348
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.6%
Flextronics International Ltd. (a) 136,000 2,341,920
------------
Electronic Equipment & Instruments Total 2,341,920
IT SERVICES - 0.6%
Convergys Corp. (a) 161,700 2,457,840
------------
IT Services Total 2,457,840
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 0.6%
Fairchild Semiconductor International,
Inc. (a) 111,600 2,681,748
------------
Semiconductors & Semiconductor
Equipment Total 2,681,748
------------
INFORMATION TECHNOLOGY TOTAL 24,615,856
Shares Value ($)
------------ ------------
MATERIALS - 6.4%
CHEMICALS - 2.9%
Monsanto Co. 230,400 8,448,768
Sigma-Aldrich Corp. 65,800 3,641,372
------------
Chemicals Total 12,090,140
CONTAINERS & PACKAGING - 2.5%
Smurfit-Stone Container Corp. (a) 175,700 3,090,563
Temple-Inland, Inc. 121,500 7,695,810
------------
Containers & Packaging Total 10,786,373
METALS & MINING - 1.0%
Southern Peru Copper Corp. 107,100 4,332,195
------------
Metals & Mining Total 4,332,195
------------
MATERIALS TOTAL 27,208,708
TELECOMMUNICATION SERVICES - 7.2%
DIVERSIFIED TELECOMMUNICATION SERVICES - 7.2%
BellSouth Corp. 509,600 14,110,824
SBC Communications, Inc. 687,800 16,878,612
------------
Diversified Telecommunication Services Total 30,989,436
------------
TELECOMMUNICATION SERVICES TOTAL 30,989,436
UTILITIES - 5.1%
ELECTRIC UTILITIES - 5.1%
American Electric Power Co., Inc. 67,900 2,235,268
Exelon Corp. 43,100 2,968,297
TECO Energy, Inc. 496,700 7,266,721
TXU Corp. 320,100 9,174,066
------------
Electric Utilities Total 21,644,352
------------
UTILITIES TOTAL 21,644,352
TOTAL COMMON STOCKS
(Cost of $372,427,542) 424,224,906
Par ($)
------------
SHORT-TERM OBLIGATION - 0.7%
Repurchase agreement with State
Street Bank & Trust Co., dated
03/31/04, due 04/01/04 at 0.960%,
collateralized by a U.S. Treasury
Bond maturing 08/15/27, market
value of $3,146,850 (repurchase
proceeds $3,080,082)
(Cost of $3,080,000) 3,080,000 3,080,000
------------
See Accompanying Notes to Financial Statements.
42
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia Disciplined Value Fund
Value ($)
------------
TOTAL INVESTMENTS - 99.9%
(COST OF $375,507,542) (b) 427,304,906
OTHER ASSETS & LIABILITIES, NET - 0.1% 272,004
NET ASSETS - 100.0% 427,576,910
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing.
(b) Cost for both financial statement and federal income tax purposes is the
same.
ACRONYM NAME
------- ----
REIT Real Estate Investment Trust
See Accompanying Notes to Financial Statements.
43
INVESTMENT PORTFOLIO____________________________________________________________
March 31, 2004 (Unaudited) Columbia International Equity Fund
Shares Value ($)
------------ ------------
COMMON STOCKS - 97.6%
CONSUMER DISCRETIONARY - 16.0%
AUTO COMPONENTS - 0.5%
Continental AG 66,500 2,620,353
------------
Auto Components Total 2,620,353
AUTOMOBILES - 2.7%
Nissan Motor Co., Ltd. 372,000 4,155,727
Renault SA 55,941 3,879,189
Toyota Motor Corp. 144,800 5,387,390
------------
Automobiles Total 13,422,306
HOTELS, RESTAURANTS & LEISURE - 2.8%
Accor SA 103,140 4,184,686
Carnival Corp. 39,300 1,764,963
Compass Group PLC 728,550 4,815,601
InterContinental Hotels Group PLC 387,220 3,548,265
------------
Hotels, Restaurants & Leisure Total 14,313,515
HOUSEHOLD DURABLES - 3.3%
Koninklijke (Royal) Philips
Electronics NV 254,021 7,355,434
Matsushita Electric Industrial Co., Ltd. 434,000 6,691,969
Sony Corp. 60,500 2,529,415
------------
Household Durables Total 16,576,818
MEDIA - 3.8%
Dentsu, Inc. 346 1,055,070
Dentsu, Inc. (a) 346 1,028,528
JC Decaux SA (a) 164,500 3,682,268
News Corp., Ltd. 262,200 2,363,641
Pearson PLC 314,500 3,586,429
Reuters Group PLC 382,300 2,727,829
United Business Media PLC 261,400 2,385,683
WPP Group PLC 219,000 2,222,815
------------
Media Total 19,052,263
MULTILINE RETAIL - 1.1%
Big C Supercenter Public Co., Ltd. 1,169,300 512,472
Seiyu Ltd. (a) 499,000 1,976,190
Takashimaya Co., Ltd. 260,000 2,907,034
------------
Multiline Retail Total 5,395,696
SPECIALTY RETAIL - 1.5%
Aoyama Trading Co., Ltd. 117,500 2,890,037
Nitori Co., Ltd. 38,150 2,564,429
USS Co., Ltd. 25,610 2,126,697
------------
Specialty Retail Total 7,581,163
TEXTILES, APPAREL & LUXURY GOODS - 0.3%
Sanyo Shokai Ltd. 165,000 1,257,851
------------
Textiles, Apparel & Luxury Goods Total 1,257,851
------------
CONSUMER DISCRETIONARY TOTAL 80,219,965
Shares Value ($)
------------ ------------
CONSUMER STAPLES - 5.9%
BEVERAGES - 1.2%
Diageo PLC 181,900 2,377,830
Pernod-Ricard SA 31,425 3,828,488
------------
Beverages Total 6,206,318
FOOD & STAPLES RETAILING - 0.9%
Casino Guichard-Perrachon SA 22,300 2,141,877
William Morrison Supermarkets PLC 526,742 2,430,379
------------
Food & Staples Retailing Total 4,572,256
FOOD PRODUCTS - 1.4%
Nestle SA, Registered Shares 26,915 6,866,668
------------
Food Products Total 6,866,668
HOUSEHOLD PRODUCTS - 1.5%
Reckitt Benckiser PLC 308,200 7,642,877
------------
Household Products Total 7,642,877
PERSONAL PRODUCTS - 0.3%
Oriflame Cosmetics SA, SDR (a) 44,100 1,242,707
------------
Personal Products Total 1,242,707
TOBACCO - 0.6%
Imperial Tobacco Group PLC 130,633 2,856,535
------------
Tobacco Total 2,856,535
------------
CONSUMER STAPLES TOTAL 29,387,361
ENERGY - 8.8%
OIL & GAS - 8.8%
BP PLC 1,788,890 15,040,089
EnCana Corp. 137,600 5,943,951
ENI S.p.A. 584,681 11,771,154
Norsk Hydro ASA 34,100 2,148,000
PTT Public Co., Ltd. 949,400 3,386,826
Total SA 32,680 6,008,270
------------
Oil & Gas Total 44,298,290
------------
ENERGY TOTAL 44,298,290
FINANCIALS - 23.9%
COMMERCIAL BANKS - 12.6%
Alpha Bank A.E. 121,600 3,744,016
Anglo Irish Bank Corp. PLC 149,600 2,360,132
Banco Popular di Verona e Novara 164,400 2,678,592
Banco Santander Central Hispano SA 311,400 3,391,397
Barclays PLC 644,100 5,691,377
Chinatrust Financial Holding
Co., Ltd. 1,262,000 1,512,868
Credit Agricole SA 225,670 5,901,325
Credit Suisse Group 100,150 3,472,679
Erste Bank der oesterreichen
Sparkassen AG 27,830 4,171,356
Hansabank Ltd. 86,849 2,757,410
Kookmin Bank, ADR 89,900 3,637,354
See Accompanying Notes to Financial Statements.
44
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia International Equity Fund
Shares Value ($)
------------ ------------
COMMON STOCKS - (CONTINUED)
FINANCIALS - (CONTINUED)
COMMERCIAL BANKS - (CONTINUED)
Royal Bank of Scotland Group PLC 243,545 7,445,017
Siam Commercial Bank Public
Co., Ltd. 3,656,200 4,145,774
Societe Generale 26,000 2,223,693
Standard Chartered Ltd., PLC 145,098 2,437,147
UFJ Holdings, Inc. 1,248 7,922,290
------------
Commercial Banks Total 63,492,427
DIVERSIFIED FINANCIAL SERVICES - 1.9%
ING Groep NV 236,900 5,212,539
Nomura Holdings, Inc. 238,000 4,324,783
------------
Diversified Financial Services Total 9,537,322
INSURANCE - 4.8%
Allianz AG, Registered Shares 61,210 6,674,548
Daido Life Insurance Co., Ltd. 605 2,465,599
Irish Life & Permanent PLC 204,800 3,362,037
Millea Holdings, Inc. 571 8,870,115
Mitsui Sumitomo Insurance Co., Ltd. 235,000 2,496,812
------------
Insurance Total 23,869,111
REAL ESTATE - 4.6%
Land and Houses Public Co.,
Ltd., NVDR 7,799,500 2,305,369
Mitsubishi Estates Co., Ltd. 775,000 10,485,928
Sumitomo Realty & Development
Co., Ltd. 281,000 3,645,711
Sun Hung Kai Properties Ltd. 755,000 6,902,962
------------
Real Estate Total 23,339,970
------------
FINANCIALS TOTAL 120,238,830
HEALTH CARE - 8.4%
HEALTH CARE EQUIPMENT & SUPPLIES - 2.3%
Nobel Biocare AG 8,965 1,232,108
Phonak Holding AG, Registered Shares 60,300 1,452,668
ResMed, Inc. (a) 16,500 745,635
Smith & Nephew PLC 847,092 8,363,576
------------
Health Care Equipment & Supplies Total 11,793,987
PHARMACEUTICALS - 6.1%
AstraZeneca PLC 77,700 3,614,433
Chugai Pharmaceutical Co., Ltd. 337,100 5,353,000
Dr. Reddy's Laboratories Ltd., ADR 117,900 2,823,705
GlaxoSmithKline PLC 390,284 7,685,178
Novartis AG, Registered Shares 106,340 4,518,852
Takeda Chemical Industries Ltd. 68,600 3,052,251
Teva Pharmaceutical Industries
Ltd., ADR 53,900 3,417,799
------------
Pharmaceuticals Total 30,465,218
------------
HEALTH CARE TOTAL 42,259,205
Shares Value ($)
------------ ------------
INDUSTRIALS - 8.4%
BUILDING PRODUCTS - 0.5%
Wienerberger AG 78,200 2,598,288
------------
Building Products Total 2,598,288
COMMERCIAL SERVICES & SUPPLIES - 1.2%
Capital Group PLC 443,800 2,552,959
Randstad Holding NV 134,400 3,589,019
------------
Commercial Services & Supplies Total 6,141,978
CONSTRUCTION & ENGINEERING - 1.1%
Shimizu Corp. 551,000 3,001,084
Taisei Corp. 646,000 2,725,608
------------
Construction & Engineering Total 5,726,692
ELECTRICAL EQUIPMENT - 1.5%
Nitto Denko Corp. 44,800 2,457,266
Siemens AG, Registered Shares 64,463 4,765,241
------------
Electrical Equipment Total 7,222,507
INDUSTRIAL CONGLOMERATES - 0.9%
Burberry Group PLC 468,900 3,084,226
NIWS Co., Ltd. 420 1,284,749
------------
Industrial Conglomerates Total 4,368,975
MACHINERY - 1.0%
Atlas Copco AB, Class B 79,000 2,577,112
Linde AG 48,500 2,571,787
------------
Machinery Total 5,148,899
ROAD & RAIL - 0.6%
Tokyu Corp. 456,000 2,850,957
------------
Road & Rail Total 2,850,957
TRADING COMPANIES & DISTRIBUTORS - 0.8%
Mitsubishi Corp. 351,000 4,139,905
------------
Trading Companies & Distributors Total 4,139,905
TRANSPORTATION INFRASTRUCTURE - 0.8%
BAA PLC 413,199 3,923,453
------------
Transportation Infrastructure Total 3,923,453
------------
INDUSTRIALS TOTAL 42,121,654
INFORMATION TECHNOLOGY - 10.3%
COMMUNICATIONS EQUIPMENT - 0.4%
Nortel Networks Corp. (a) 325,500 1,912,299
------------
Communications Equipment Total 1,912,299
COMPUTERS & PERIPHERALS - 0.3%
Acer, Inc. 977,000 1,512,200
------------
Computers & Peripherals Total 1,512,200
ELECTRONIC EQUIPMENT & INSTRUMENTS - 3.7%
Celestica, Inc. (a) 128,200 2,085,625
Epcos AG (a) 98,500 2,235,187
Flextronics International Ltd. (a) 126,800 2,183,496
See Accompanying Notes to Financial Statements.
45
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia International Equity Fund
Shares Value ($)
------------ ------------
COMMON STOCKS - (CONTINUED)
INFORMATION TECHNOLOGY - (CONTINUED)
ELECTRONIC EQUIPMENT & INSTRUMENTS - (CONTINUED)
Hon Hai Precision Industry Co., Ltd. 340,000 1,470,410
Hoya Corp. 25,700 2,501,366
Keyence Corp. 18,800 4,571,779
TDK Corp. 49,400 3,765,930
------------
Electronic Equipment & Instruments Total 18,813,793
INTERNET SOFTWARE & SERVICES - 0.4%
Index Corp. 368 2,025,526
------------
Internet Software & Services Total 2,025,526
IT SERVICES - 0.8%
Indra Sistemas SA 194,900 2,547,142
TIS, Inc. 27,300 1,240,850
------------
IT Services Total 3,787,992
OFFICE ELECTRONICS - 0.9%
Canon, Inc. 88,000 4,548,305
------------
Office Electronics Total 4,548,305
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 3.2%
ARM Holdings PLC 930,800 2,042,233
Nikon Corp. 124,000 1,646,833
Samsung Electronics Co., Ltd. 18,891 9,453,764
Taiwan Semiconductor Manufacturing
Co., Ltd., ADR (a) 281,640 2,940,322
------------
Semiconductors & Semiconductor
Equipment Total 16,083,152
SOFTWARE - 0.6%
Dassault Systemes SA 74,900 3,115,410
------------
Software Total 3,115,410
------------
INFORMATION TECHNOLOGY TOTAL 51,798,677
MATERIALS - 6.3%
CHEMICALS - 3.1%
BASF AG 70,200 3,570,420
MG Technologies AG 171,500 2,401,724
Shin-Etsu Chemical Co., Ltd. 57,700 2,423,417
Syngenta AG 68,702 5,014,071
Yara International ASA (a) 261,600 1,899,605
------------
Chemicals Total 15,309,237
CONSTRUCTION MATERIALS - 1.4%
Siam Cement Public Co., Ltd.,
NVDR (a) 1,186,350 6,831,828
------------
Construction Materials Total 6,831,828
Shares Value ($)
------------ ------------
METALS & MINING - 0.5%
BHP Billiton Ltd. 273,166 2,562,835
------------
Metals & Mining Total 2,562,835
PAPER & FOREST PRODUCTS - 1.3%
Stora Enso Oyj, Class R 330,450 4,164,113
UPM Kymmene Oyj 139,800 2,563,363
------------
Paper & Forest Products Total 6,727,476
------------
MATERIALS TOTAL 31,431,376
TELECOMMUNICATION SERVICES - 7.7%
DIVERSIFIED TELECOMMUNICATION SERVICES - 3.7%
France Telecom SA (a) 142,800 3,658,691
Nippon Telegraph & Telephone Corp. 459 2,596,826
Portugal Telecom SGPS SA,
Registered Shares 239,280 2,679,567
Telecom Italia S.p.A. (a) 1,453,703 4,561,762
Telefonica SA 326,620 4,947,862
------------
Diversified Telecommunication Services Total 18,444,708
WIRELESS TELECOMMUNICATION SERVICES - 4.0%
NTT DoCoMo, Inc. 1,872 4,128,686
Telefonaktiebolaget LM Ericsson
SP, ADR (a) 136,700 3,793,425
VimpelCom, ADR (a) 27,800 2,890,922
Vodafone Group PLC 4,059,800 9,637,265
------------
Wireless Telecommunication Services Total 20,450,298
------------
TELECOMMUNICATION SERVICES TOTAL 38,895,006
UTILITIES - 1.9%
ELECTRIC UTILITIES - 1.9%
E.ON AG 36,600 2,414,141
National Grid Transco PLC 609,600 4,832,984
Public Power Corp. 96,400 2,424,793
------------
Electric Utilities Total 9,671,918
------------
UTILITIES TOTAL 9,671,918
TOTAL COMMON STOCKS
(Cost of $402,423,529) 490,322,282
PREFERRED STOCK - 0.5%
CONSUMER DISCRETIONARY - 0.5%
MEDIA - 0.5%
Prosieben SAT.1 Media AG
(Cost of $2,229,174) 137,500 2,724,240
------------
See Accompanying Notes to Financial Statements.
46
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia International Equity Fund
Par ($) Value ($)
------------ ------------
SHORT-TERM OBLIGATION - 1.6%
Repurchase agreement with State
Street Bank & Trust Co., dated
03/31/04, due 04/01/04 at 0.960%,
collateralized by a U.S. Treasury
Bond maturing 11/15/26, market
value of $8,050,573 (repurchase
proceeds $7,889,210)
(Cost of $7,889,000) 7,889,000 7,889,000
------------
TOTAL INVESTMENTS - 99.7%
(COST OF $412,541,703) (b) 500,935,522
OTHER ASSETS & LIABILITIES, NET - 0.3% 1,540,779
NET ASSETS - 100.0% 502,476,301
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing.
(b) Cost for both financial statement and federal income tax purposes is the
same.
SUMMARY OF SECURITIES % OF TOTAL
BY COUNTRY VALUE INVESTMENTS
------------------------ ------------ -----------
Japan $129,095,913 25.8%
United Kingdom 110,944,180 22.1
France 38,623,897 7.7
Germany 29,977,641 6.0
Switzerland 22,557,046 4.5
Italy 19,011,508 3.8
Thailand 17,182,269 3.4
Netherlands 16,156,992 3.2
South Korea 13,091,118 2.6
Spain 10,886,401 2.2
Canada 9,941,875 2.0
United States 8,634,635 1.7
Taiwan 7,435,800 1.5
Hong Kong 6,902,962 1.4
Austria 6,769,644 1.4
Finland 6,727,476 1.3
Sweden 6,370,537 1.3
Greece 6,168,809 1.2
Ireland 5,722,169 1.1
Australia 4,926,476 1.0
Norway 4,047,605 0.8
Israel 3,417,799 0.7
Russia 2,890,922 0.6
India 2,823,705 0.6
Estonia 2,757,410 0.6
Portugal 2,679,567 0.5
Singapore 2,183,496 0.4
Panama 1,764,963 0.4
Luxembourg 1,242,707 0.2
------------ -----------
Total $500,935,522 100.0%
============ ===========
Certain securities are listed by country of underlying exposure but may trade
predominately on other exchanges.
ACRONYM NAME
------- ----
ADR American Depositary Receipt
NVDR Non-Voting Depositary Receipt
SDR Swedish Depositary Receipt
See Accompanying Notes to Financial Statements.
47
INVESTMENT PORTFOLIO____________________________________________________________
March 31, 2004 (Unaudited) Columbia Large Cap Core Fund
Shares Value ($)
------------ ------------
COMMON STOCKS - 99.1%
CONSUMER DISCRETIONARY - 13.9%
HOTELS, RESTAURANTS & LEISURE - 1.0%
Yum! Brands, Inc. (a) 114,600 4,353,654
------------
Hotels, Restaurants & Leisure Total 4,353,654
HOUSEHOLD DURABLES - 1.2%
Sony Corp., ADR 120,000 5,017,200
------------
Household Durables Total 5,017,200
MEDIA - 6.6%
Comcast Corp., Class A (a) 186,500 5,360,010
Fox Entertainment Group, Inc.,
Class A (a) 198,700 5,384,770
Liberty Media Corp., Class A (a) 541,908 5,933,893
Viacom, Inc., Class A 305,500 11,978,655
------------
Media Total 28,657,328
MULTILINE RETAIL - 1.2%
Family Dollar Stores, Inc. 144,500 5,194,775
------------
Multiline Retail Total 5,194,775
SPECIALTY RETAIL - 3.9%
Abercrombie & Fitch Co., Class A 185,000 6,260,400
Best Buy Co, Inc. 112,000 5,792,640
Staples, Inc. (a) 199,800 5,072,922
------------
Specialty Retail Total 17,125,962
------------
CONSUMER DISCRETIONARY TOTAL 60,348,919
CONSUMER STAPLES - 8.6%
BEVERAGES - 2.9%
PepsiCo, Inc. 232,000 12,493,200
------------
Beverages Total 12,493,200
FOOD & STAPLES RETAILING - 2.0%
Costco Wholesale Corp. (a) 87,400 3,282,744
Wal-Mart Stores, Inc. 93,190 5,562,511
------------
Food & Staples Retailing Total 8,845,255
HOUSEHOLD PRODUCTS - 3.2%
Colgate-Palmolive Co. 79,900 4,402,490
Procter & Gamble Co. 89,000 9,334,320
------------
Household Products Total 13,736,810
PERSONAL PRODUCTS - 0.5%
Avon Products, Inc. 27,900 2,116,773
------------
Personal Products Total 2,116,773
------------
CONSUMER STAPLES TOTAL 37,192,038
ENERGY - 5.6%
ENERGY EQUIPMENT & SERVICES - 1.1%
Baker Hughes, Inc. 134,074 4,891,019
------------
Energy Equipment & Services Total 4,891,019
Shares Value ($)
------------ ------------
OIL & GAS - 4.5%
ConocoPhillips 119,000 8,307,390
Exxon Mobil Corp. 217,000 9,025,030
Royal Dutch Petroleum Co.,
N.Y. Registered Shares 45,660 2,172,503
------------
Oil & Gas Total 19,504,923
------------
ENERGY TOTAL 24,395,942
FINANCIALS - 20.0%
CAPITAL MARKETS - 3.6%
Bank of New York Co., Inc. 101,900 3,209,850
E*TRADE Financial Corp. (a) 255,200 3,406,920
Merrill Lynch & Co., Inc. 148,070 8,819,049
------------
Capital Markets Total 15,435,819
COMMERCIAL BANKS - 5.6%
Fifth Third Bancorp 39,200 2,170,504
SouthTrust Corp. 68,760 2,280,082
U.S. Bancorp 148,200 4,097,730
Wachovia Corp. 157,100 7,383,700
Wells Fargo & Co. 143,000 8,103,810
------------
Commercial Banks Total 24,035,826
CONSUMER FINANCE - 1.5%
MBNA Corp. 241,100 6,661,593
------------
Consumer Finance Total 6,661,593
DIVERSIFIED FINANCIAL SERVICES - 2.0%
Citigroup, Inc. 169,600 8,768,320
------------
Diversified Financial Services Total 8,768,320
INSURANCE - 5.9%
AFLAC, Inc. 124,173 4,984,304
Hartford Financial Services Group, Inc. 74,000 4,713,800
MetLife, Inc. 126,770 4,523,154
Travelers Property Casualty Corp.,
Class A 207,080 3,551,422
Willis Group Holdings Ltd. 64,000 2,380,800
XL Capital Ltd. 71,000 5,398,840
------------
Insurance Total 25,552,320
THRIFTS & MORTGAGE FINANCE - 1.4%
Fannie Mae 81,400 6,052,090
------------
Thrifts & Mortgage Finance Total 6,052,090
------------
FINANCIALS TOTAL 86,505,968
HEALTH CARE - 14.3%
BIOTECHNOLOGY - 0.7%
Gilead Sciences, Inc. (a) 38,000 2,119,260
Invitrogen Corp. (a) 17,075 1,224,107
------------
Biotechnology Total 3,343,367
See Accompanying Notes to Financial Statements.
48
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia Large Cap Core Fund
Shares Value ($)
------------ ------------
COMMON STOCKS - (CONTINUED)
HEALTH CARE - (CONTINUED)
HEALTH CARE EQUIPMENT & SUPPLIES - 1.9%
Alcon, Inc. 34,900 2,209,170
Medtronic, Inc. 125,000 5,968,750
------------
Health Care Equipment & Supplies Total 8,177,920
HEALTH CARE PROVIDERS & SERVICES - 3.2%
Anthem, Inc. (a) 74,600 6,761,744
Caremark Rx, Inc. (a) 213,100 7,085,575
------------
Health Care Providers & Services Total 13,847,319
PHARMACEUTICALS - 8.5%
Allergan, Inc. 49,600 4,174,336
GlaxoSmithKline PLC, ADR 68,160 2,722,992
Johnson & Johnson Co. 82,980 4,208,746
Pfizer, Inc. 505,000 17,700,250
Teva Pharmaceutical Industries
Ltd., ADR 77,000 4,882,570
Watson Pharmaceuticals, Inc. (a) 71,300 3,050,927
------------
Pharmaceuticals Total 36,739,821
------------
HEALTH CARE TOTAL 62,108,427
INDUSTRIALS - 11.6%
AEROSPACE & DEFENSE - 2.2%
United Technologies Corp. 111,860 9,653,518
------------
Aerospace & Defense Total 9,653,518
AIR FREIGHT & LOGISTICS - 1.1%
FedEx Corp. 64,300 4,832,788
------------
Air Freight & Logistics Total 4,832,788
BUILDING PRODUCTS - 1.1%
Masco Corp. 154,900 4,715,156
------------
Building Products Total 4,715,156
COMMERCIAL SERVICES & SUPPLIES - 1.3%
Avery Dennison Corp. 35,000 2,177,350
Cendant Corp. 142,500 3,475,575
------------
Commerical Services & Supplies Total 5,652,925
INDUSTRIAL CONGLOMERATES - 1.5%
General Electric Co. 211,404 6,452,050
------------
Industrial Conglomerates Total 6,452,050
MACHINERY - 3.8%
Federal Signal Corp. 139,757 2,774,176
Flowserve Corp. (a) 70,000 1,466,500
Ingersoll-Rand Co., Class A 66,620 4,506,843
PACCAR, Inc. 91,200 5,129,088
Timken Co. 109,753 2,549,562
------------
Machinery Total 16,426,169
Shares Value ($)
------------ ------------
TRADING COMPANIES & DISTRIBUTORS - 0.6%
MSC Industrial Direct Co., Inc.,
Class A 85,287 2,554,346
------------
Trading Companies & Distributors Total 2,554,346
------------
INDUSTRIALS TOTAL 50,286,952
INFORMATION TECHNOLOGY - 20.1%
COMMUNICATIONS EQUIPMENT - 2.6%
Avaya, Inc. (a) 139,900 2,221,612
Cisco Systems, Inc. (a) 389,100 9,151,632
------------
Communications Equipment Total 11,373,244
COMPUTERS & PERIPHERALS - 2.1%
Lexmark International, Inc. (a) 99,781 9,179,852
------------
Computers & Peripherals Total 9,179,852
ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.5%
Agilent Technologies, Inc. (a) 63,200 1,999,016
Flextronics International Ltd. (a) 246,130 4,238,359
------------
Electronic Equipment & Instruments Total 6,237,375
IT SERVICES - 1.7%
Accenture Ltd. (a) 287,600 7,132,480
------------
IT Services Total 7,132,480
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 6.5%
Altera Corp. (a) 85,300 1,744,385
Analog Devices, Inc. 164,045 7,875,800
KLA-Tencor Corp. (a) 58,800 2,960,580
Marvell Technology Group Ltd. (a) 85,100 3,833,755
Maxim Integrated Products, Inc. 104,005 4,897,595
Taiwan Semiconductor Manufacturing
Co., Ltd., ADR (a) 654,600 6,834,024
------------
Semiconductors & Semiconductor
Equipment Total 28,146,139
SOFTWARE - 5.7%
Microsoft Corp. 645,000 16,105,650
Symantec Corp. (a) 109,725 5,080,267
VERITAS Software Corp. (a) 132,100 3,554,811
------------
Software Total 24,740,728
------------
INFORMATION TECHNOLOGY TOTAL 86,809,818
MATERIALS - 4.0%
CONTAINERS & PACKAGING - 0.5%
Smurfit-Stone Container Corp. (a) 124,400 2,188,196
------------
Containers & Packaging Total 2,188,196
METALS & MINING - 1.9%
Companhia Vale do Rio Doce, ADR 105,152 4,926,371
Rio Tinto PLC, ADR 31,000 3,117,980
------------
Metals & Mining Total 8,044,351
See Accompanying Notes to Financial Statements.
49
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia Large Cap Core Fund
Shares Value ($)
------------ ------------
COMMON STOCKS - (CONTINUED)
MATERIALS - (CONTINUED)
PAPER & FOREST PRODUCTS - 1.6%
Aracruz Celulose SA, ADR 35,000 1,338,750
Weyerhaeuser Co. 86,000 5,633,000
------------
Paper & Forest Products Total 6,971,750
------------
MATERIALS TOTAL 17,204,297
UTILITIES - 1.0%
ELECTRIC UTILITIES - 1.0%
FirstEnergy Corp. 114,860 4,488,729
------------
Electric Utilities Total 4,488,729
------------
UTILITIES TOTAL 4,488,729
TOTAL COMMON STOCKS
(Cost of $395,445,570) 429,341,090
TOTAL INVESTMENTS - 99.1%
(COST OF $395,445,570) (b) 429,341,090
OTHER ASSETS & LIABILITIES, NET - 0.9% 3,739,754
NET ASSETS - 100.0% 433,080,844
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing.
(b) Cost for both financial statement and federal income tax purposes is the
same.
ACRONYM NAME
------- ----
ADR American Depositary Receipt
See Accompanying Notes to Financial Statements.
50
INVESTMENT PORTFOLIO____________________________________________________________
March 31, 2004 (Unaudited) Columbia Small Cap Fund
Shares Value ($)
------------ ------------
COMMON STOCKS - 88.1%
CONSUMER DISCRETIONARY - 21.9%
AUTO COMPONENTS - 1.2%
Cooper Tire & Rubber Co. 300,670 6,058,501
Keystone Automotive Industries,
Inc. (a) 225,000 6,156,000
R&B, Inc. (a) 203,883 3,751,447
Sauer-Danfoss, Inc. 271,900 3,716,873
------------
Auto Components Total 19,682,821
HOTELS, RESTAURANTS & LEISURE - 5.2%
Buca, Inc. (a) 450,000 2,812,500
CEC Entertainment, Inc. (a) 217,230 7,537,881
Checkers Drive-In Restaurant,
Inc. (a)(b) 607,900 7,385,985
Famous Dave's of America, Inc. (a) 397,500 3,092,152
Friendly Ice Cream Corp. (a) 230,000 3,553,500
Gaylord Entertainment Co. (a) 253,000 7,817,700
Jack in the Box, Inc. (a) 353,900 8,836,883
Navigant International, Inc. (a) 325,000 5,850,000
O'Charleys, Inc. (a) 627,005 11,442,841
Rare Hospitality International, Inc. (a) 125,000 3,468,750
Ruby Tuesday, Inc. 210,500 6,767,575
Ryan's Family Steak Houses, Inc. (a) 418,650 7,163,102
Steak N Shake Co. (a) 96,200 1,851,850
Entertainment Restaurant Corp. (a) 313,336 4,371,037
------------
Hotels, Restaurants & Leisure Total 81,951,756
HOUSEHOLD DURABLES - 1.5%
Bassett Furniture Industries, Inc. 138,850 2,753,396
Kimball International, Inc., Class B 127,400 1,996,358
Rayovac Corp. (a) 316,100 9,040,460
Topps Co., Inc. 268,900 2,567,995
Yankee Candle Co., Inc. (a) 275,400 7,595,532
------------
Household Durables Total 23,953,741
INTERNET & CATALOG RETAIL - 0.5%
Alloy, Inc. (a) 1,227,100 5,890,080
Valuevision Media, Inc., Class A (a) 98,600 1,513,510
------------
Internet & Catalog Retail Total 7,403,590
LEISURE EQUIPMENT & PRODUCTS -0.9%
Callaway Golf Co. 252,400 4,790,552
RC2 Corp. (a) 346,400 9,526,000
------------
Leisure Equipment & Products Total 14,316,552
MEDIA - 3.6%
ADVO, Inc. 360,699 11,621,722
Catalina Marketing Corp. (a) 341,800 6,627,502
Journal Communications, Inc., Class A 179,400 3,588,000
Journal Register Co., (a) 367,500 7,680,750
Paxson Communications Corp. (a) 1,275,400 4,974,060
Pulitzer, Inc. 144,200 6,957,650
Regent Communications, Inc. (a) 401,600 2,614,416
Scholastic Corp. (a) 221,000 6,022,250
Sinclair Broadcast Group, Inc.,
Class A (a) 263,100 3,288,750
Young Broadcasting, Inc., Class A (a) 209,400 3,790,140
------------
Media Total 57,165,240
Shares Value ($)
------------ ------------
SPECIALTY RETAIL - 6.4%
AC Moore Arts & Crafts, Inc. (a) 175,000 4,725,000
American Eagle Outfitters (a) 308,800 8,325,248
Blue Rhino Corp. (a) 306,700 5,195,498
Buckle, Inc. 349,900 10,133,104
Dress Barn, Inc. (a) 246,400 4,321,856
Gaiam, Inc. (a) 159,100 886,187
Gymboree Corp. (a) 499,500 8,376,615
Hancock Fabrics, Inc. 303,800 4,827,382
InterTAN, Inc. (a) 623,850 8,715,184
Lithia Motors, Inc., Class A 314,300 8,690,395
Monro Muffler Brake, Inc. (a) 198,200 4,953,018
Party City Corp. (a) 276,800 4,121,552
Regis Corp. 150,000 6,666,000
Rent-A-Center, Inc. (a) 167,750 5,534,072
Rush Enterprises, Inc., Class A (a) 150,000 1,740,000
Rush Enterprises, Inc., Class B (a) 150,000 1,725,000
Stage Stores, Inc. (a) 83,000 3,211,270
Stein Mart, Inc. (a) 303,900 4,193,820
Wet Seal, Inc., Class A (a) 458,700 3,784,275
Wilsons The Leather Experts, Inc. (a) 359,900 1,004,121
------------
Specialty Retail Total 101,129,597
TEXTILES, APPAREL & LUXURY GOODS - 2.6%
Phillips-Van Heusen Corp. 311,900 5,770,150
Quiksilver, Inc. (a) 407,200 8,897,320
Rocky Shoes & Boots, Inc. (a) 68,500 1,657,700
Tommy Hilfiger Corp. (a) 400,900 6,815,300
Unifirst Corp. (b) 472,800 13,039,824
Vans, Inc. (a) 320,700 4,746,360
------------
Textiles, Apparel & Luxury Goods Total 40,926,654
------------
CONSUMER DISCRETIONARY TOTAL 346,529,951
CONSUMER STAPLES - 1.6%
FOOD & STAPLES RETAILING - 0.7%
Casey's General Stores, Inc. 316,570 5,255,062
Ingles Markets, Inc., Class A 81,100 868,338
United Natural Foods, Inc. (a) 55,900 2,688,231
Wild Oats Markets, Inc. (a) 239,100 2,828,553
------------
Food & Staples Retailing Total 11,640,184
FOOD PRODUCTS - 0.9%
Corn Products International, Inc. 145,800 5,832,000
Delta & Pine Land Co. 318,200 7,939,090
------------
Food Products Total 13,771,090
------------
CONSUMER STAPLES TOTAL 25,411,274
ENERGY - 5.1%
ENERGY EQUIPMENT & SERVICES - 2.2%
Atwood Oceanics, Inc. (a) 181,500 6,459,585
Core Laboratories NV (a) 130,300 2,762,360
Gulfmark Offshore, Inc. (a) 541,200 8,502,252
Newpark Resources, Inc. (a) 831,000 4,321,200
Oceaneering International, Inc. (a) 201,100 6,123,495
See Accompanying Notes to Financial Statements.
51
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia Small Cap Fund
Shares Value ($)
------------ ------------
COMMON STOCKS - (CONTINUED)
ENERGY - (CONTINUED)
ENERGY EQUIPMENT & SERVICES - (CONTINUED)
Offshore Logistics, Inc. (a) 100,000 2,305,000
Oil States International, Inc. (a) 194,500 2,614,080
Pride International, Inc. (a) 100,200 1,709,412
------------
Energy Equipment & Services Total 34,797,384
OIL & GAS - 2.9%
Brown (Tom), Inc. (a) 258,100 9,704,560
Cimarex Energy Co. (a) 184,900 5,343,610
Houston Exploration Co. (a) 235,400 10,529,442
Plains Exploration & Production
Co. (a) 84,245 1,570,327
Southwestern Energy Co. (a) 282,400 6,811,488
Vintage Petroleum, Inc. 263,600 3,864,376
Whiting Petroleum Corp. (a) 320,200 7,553,518
------------
Oil & Gas Total 45,377,321
------------
ENERGY TOTAL 80,174,705
FINANCIALS - 8.0%
COMMERCIAL BANKS - 2.2%
First Niagara Financial Group, Inc. 465,500 6,354,075
Hanmi Financial Corp. 32,398 861,463
Matrix Bancorp, Inc. (a) 227,400 2,580,990
Oriental Financial Group 360,537 11,483,103
Republic Bancorp, Inc. 269,937 3,795,314
Riggs National Corp. 61,300 1,054,973
Taylor Capital Group, Inc. 129,628 2,987,925
Willow Grove Bancorp, Inc. 272,000 4,868,800
------------
Commercial Banks Total 33,986,643
CONSUMER FINANCE - 0.3%
Rewards Network, Inc. (a) 440,100 4,401,000
------------
Consumer Finance Total 4,401,000
DIVERSIFIED FINANCIAL SERVICES - 0.5%
Jefferson Bancshares, Inc. 216,400 3,018,780
Kirkland's, Inc. (a) 335,000 5,470,550
------------
Diversified Financial Services Total 8,489,330
INSURANCE - 2.6%
AmerUs Group Co. 158,320 6,388,212
Bristol West Holdings, Inc. (a) 256,100 5,224,440
Direct General Corp. 150,100 5,433,620
Horace Mann Educators Corp. 251,200 3,948,864
Hub International Ltd. 49,500 908,325
Navigators Group, Inc. (a) 152,800 4,397,584
NYMAGIC, Inc. 105,000 2,656,500
Ohio Casualty Corp. (a) 295,600 5,909,044
Phoenix Companies, Inc. 199,900 2,680,659
PICO Holdings, Inc. (a) 38,300 629,269
Presidential Life Corp. 140,100 2,098,698
United Fire & Casualty Co. (a) 38,038 1,607,828
------------
Insurance Total 41,883,043
Shares Value ($)
------------ ------------
REAL ESTATE - 1.3%
Corporate Office Properties Trust,
Inc., REIT 79,200 1,980,000
First Potomac Realty Trust 330,500 6,907,450
Healthcare Realty Trust, Inc., REIT 43,050 1,838,235
Innkeepers USA Trust, Inc., REIT 326,500 2,984,210
Kilroy Realty Corp., REIT 59,000 2,094,500
Medical Office Properties, Inc. (a)(c) 277,825 4,695,242
------------
Real Estate Total 20,499,637
THRIFTS & MORTGAGE FINANCE - 1.1%
Anchor BanCorp Wisconsin, Inc. 157,400 4,021,570
Dime Community Bancshares 283,200 5,763,120
Webster Financial Corp. 145,900 7,398,589
------------
Thrifts & Mortgage Finance Total 17,183,279
------------
FINANCIALS TOTAL 126,442,932
HEALTH CARE - 12.4%
BIOTECHNOLOGY - 1.5%
BioMarin Pharmaceuticals, Inc. (a) 227,950 1,714,184
CV Therapeutics, Inc. (a) 184,200 2,786,946
Lifecell Corp. (a) 600,000 4,920,000
PRAECIS Pharmaceuticals, Inc. (a) 507,100 2,996,961
Serologicals Corp. (a) 437,100 8,916,840
Strategic Diagnostics, Inc. (a) 700,000 2,765,000
------------
Biotechnology Total 24,099,931
HEALTH CARE EQUIPMENT & SUPPLIES - 5.3%
Analogic Corp. 158,700 7,219,263
Cytyc Corp. (a) 322,500 7,175,625
Datascope Corp. 163,250 5,736,605
Haemonetics Corp. (a) 197,000 6,195,650
Immucor, Inc. (a) 336,950 6,105,534
Invacare Corp. 453,300 20,461,962
Lifecore Biomedical, Inc. (a) 300,300 2,252,250
STAAR Surgical Co. (a) 530,600 4,759,482
SurModics, Inc. (a) 100,000 1,991,000
Thoratec Corp. (a) 749,200 9,357,508
West Pharmaceutical Services, Inc. 316,000 11,818,400
------------
Health Care Equipment & Supplies Total 83,073,279
HEALTH CARE PROVIDERS & SERVICES - 4.6%
Amsurg Corp. (a) 150,000 3,406,500
Beverly Enterprises, Inc. (a) 628,500 4,022,400
LabOne, Inc. (a) 182,300 5,541,920
Pediatrix Medical Group, Inc. (a) 134,200 8,454,600
Priority Healthcare Corp. (a) 316,975 6,748,398
Proxymed, Inc. (a) 100,000 1,904,000
PSS World Medical, Inc. (a) 590,700 6,609,933
Psychiatric Solutions, Inc. (a) 215,700 4,044,375
Res-Care, Inc. (a) 899,125 11,490,818
Select Medical Corp. 470,000 7,849,000
Symbion, Inc. (a) 17,700 321,432
Triad Hospitals, Inc. (a) 297,400 9,165,868
U.S. Physical Therapy, Inc. (a) 273,200 3,770,160
------------
Health Care Providers & Services Total 73,329,404
See Accompanying Notes to Financial Statements.
52
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia Small Cap Fund
Shares Value ($)
------------ ------------
COMMON STOCKS - (CONTINUED)
HEALTH CARE - (CONTINUED)
PHARMACEUTICALS - 1.0%
Acusphere, Inc. (a) 344,500 2,876,575
Valeant Pharmaceuticals International 517,226 12,346,185
------------
Pharmaceuticals Total 15,222,760
------------
HEALTH CARE TOTAL 195,725,374
INDUSTRIALS - 17.3%
AEROSPACE & DEFENSE - 1.5%
Armor Holdings, Inc. (a) 473,765 15,681,622
Kaman Corp., Class A 45,700 682,301
Ladish Co., Inc. (a) 276,300 2,425,914
Moog, Inc., Class A (a) 156,000 5,322,720
------------
Aerospace & Defense Total 24,112,557
AIR FREIGHT & LOGISTICS - 0.8%
AirNet Systems, Inc. (a) 365,100 1,803,594
J.B. Hunt Transport Services, Inc. (a) 139,200 3,921,264
Ryder System, Inc. 187,000 7,242,510
------------
Air Freight & Logistics Total 12,967,368
BUILDING PRODUCTS - 1.2%
Jacuzzi Brands, Inc. (a) 757,500 7,105,350
NCI Building Systems, Inc. (a) 338,200 7,934,172
Trex Co., Inc. (a) 121,100 4,130,721
------------
Building Products Total 19,170,243
COMMERCIAL SERVICES & SUPPLIES - 5.1%
Capital Environmental Resource,
Inc. (a) 98,800 528,481
Cornell Companies, Inc. (a)(b) 765,600 8,857,992
Danka Business Systems PLC,
ADR (a) 1,600,000 6,817,600
FTI Consulting, Inc. (a) 620,000 10,329,200
G&K Services, Inc., Class A 180,900 6,733,098
HMS Holdings Corp. (a) 194,400 1,290,816
infoUSA, Inc. (a) 333,100 3,500,881
Kforce, Inc. (a) 915,884 8,700,898
Layne Christensen Co. (a) 85,400 1,251,110
Mobile Mini, Inc. (a) 111,000 1,920,300
MPW Industrial Services Group,
Inc. (a) 188,100 496,584
Nashua Corp. (a) 169,600 1,455,168
NCO Group, Inc. (a) 368,330 8,607,872
RemedyTemp, Inc., Class A (a) 125,210 1,659,032
School Specialty, Inc. (a) 194,200 6,907,694
Sotheby's Holdings, Inc., Class A (a) 163,800 2,104,830
Spherion Corp. (a) 499,200 5,106,816
Tetra Tech, Inc. (a) 177,000 3,798,420
Westaff, Inc. (a) 138,400 283,720
Willis Lease Finance Corp. (a) 87,100 779,632
------------
Commercial Services & Supplies Total 81,130,144
Shares Value ($)
------------ ------------
CONSTRUCTION & ENGINEERING - 1.6%
Chicago Bridge & Iron Co. NV, N.Y.
Registered Shares 359,500 10,004,885
EMCOR Group, Inc. (a) 261,500 9,597,050
Mastec, Inc. (a) 216,700 2,052,149
Shaw Group, Inc. (a) 343,200 3,720,288
------------
Construction & Engineering Total 25,374,372
ELECTRICAL EQUIPMENT - 0.3%
Powell Industries, Inc. (a) 172,700 3,067,152
Wood's (T.B.) Corp. 108,207 941,401
------------
Electrical Equipment Total 4,008,553
INDUSTRIAL CONGLOMERATES - 0.1%
Gerber Scientific, Inc. (a) 287,400 1,954,320
------------
Industrial Conglomerates Total 1,954,320
MACHINERY - 5.1%
AGCO Corp. (a) 226,300 4,686,673
Albany International Corp., Class A 600,005 16,134,134
CIRCOR International, Inc. 248,900 5,625,140
Flowserve Corp. (a) 155,635 3,260,553
Key Technology, Inc. (a) 189,265 3,032,025
Lydall, Inc. (a) 188,600 1,923,720
Oshkosh Truck Corp. 64,500 3,592,650
Pentair, Inc. 149,600 8,826,400
Reliance Steel & Aluminum Co. 328,100 11,532,715
Terex Corp. (a) 193,944 7,170,110
Thomas Industries, Inc. 241,585 7,609,928
Watts Water Technologies, Inc. 283,400 6,628,726
------------
Machinery Total 80,022,774
ROAD & RAIL - 1.6%
Arkansas Best Corp. 391,600 10,490,964
Kansas City Southern (a) 403,845 5,613,446
P.A.M. Transportation Services,
Inc., (a) 101,400 1,754,220
USF Corp. 106,600 3,647,852
Werner Enterprises, Inc. 185,125 3,508,119
------------
Road & Rail Total 25,014,601
------------
INDUSTRIALS TOTAL 273,754,932
INFORMATION TECHNOLOGY - 11.8%
COMMUNICATIONS EQUIPMENT - 0.6%
NMS Communications Corp. (a) 204,190 1,462,000
Paradyne Networks Corp. (a) 1,050,000 3,916,500
Performance Technologies, Inc. (a) 236,400 3,992,796
------------
Communications Equipment Total 9,371,296
COMPUTERS & PERIPHERALS - 1.8%
Cray, Inc. (a) 814,500 5,400,135
Hypercom Corp. (a) 475,800 3,777,852
Imation Corp. 249,500 9,386,190
Intergraph Corp. (a) 83,383 2,016,201
Maxtor Corp. (a) 334,600 2,726,990
See Accompanying Notes to Financial Statements.
53
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia Small Cap Fund
Shares Value ($)
------------ ------------
COMMON STOCKS - (CONTINUED)
INFORMATION TECHNOLOGY - (CONTINUED)
COMPUTERS & PERIPHERALS - (CONTINUED)
Presstek, Inc. (a) 12,200 132,736
Rimage Corp. (a) 162,900 2,521,692
Storage Technology Corp. (a) 100,000 2,783,000
------------
Computers & Peripherals Total 28,744,796
ELECTRONIC EQUIPMENT & INSTRUMENTS - 3.3%
Agilysys, Inc. 289,600 3,446,240
Benchmark Electronics, Inc. (a) 554,750 17,463,530
Itron, Inc. (a) 300,300 5,588,583
K-Tron International, Inc. (a) 47,710 1,016,223
Keithley Instruments, Inc. 293,640 6,081,284
LeCroy Corp. (a) 139,500 2,897,415
LSI Industries, Inc. 575,965 7,003,734
Merix Corp. (a) 135,400 2,498,130
Technitrol, Inc. (a) 313,010 5,884,588
------------
Electronic Equipment & Instruments Total 51,879,727
INTERNET SOFTWARE & SERVICES - 0.3%
Allscripts Healthcare Solutions,
Inc. (a) 200,000 1,940,000
Selectica, Inc. (a) 516,400 2,819,544
------------
Internet Software & Services Total 4,759,544
IT SERVICES - 2.1%
Acxiom Corp. 142,060 3,119,638
Analysts International Corp. (a) 523,900 1,545,505
Computer Task Group, Inc. (a) 792,500 4,192,325
Gartner, Inc., Class A (a) 232,000 2,702,800
Inforte Corp. (a) 450,000 4,500,000
Integral Systems, Inc. (a) 168,100 3,193,900
ProQuest Co. (a) 394,230 11,499,689
Startek, Inc. 59,700 2,169,498
------------
IT Services Total 32,923,355
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 1.1%
Anadigics, Inc. (a) 364,300 2,265,946
Asyst Technologies, Inc. (a) 155,700 1,281,411
ChipPAC, Inc., Class A (a) 323,200 2,556,512
Fairchild Semiconductor International,
Inc., Class A (a) 293,200 7,045,596
Pericom Semiconductor Corp. (a) 343,260 3,940,625
------------
Semiconductors & Semiconductor
Equipment Total 17,090,090
SOFTWARE - 2.6%
BindView Development Corp. (a) 1,338,700 4,551,580
MAPICS, Inc. (a) 159,400 1,287,952
Mapinfo Corp. (a) 249,000 3,177,240
Mediware Information Systems,
Inc. (a) 158,300 2,803,493
MSC.Software Corp. (a) 460,515 4,057,137
PLATO Learning, Inc. (a) 419,100 4,228,719
Shares Value ($)
------------ ------------
Progress Software Corp. (a) 253,400 6,079,066
Sybase, Inc. (a) 465,600 9,772,944
THQ, Inc. (a) 288,000 5,826,240
------------
Software Total 41,784,371
------------
INFORMATION TECHNOLOGY TOTAL 186,553,179
MATERIALS - 7.0%
CHEMICALS - 4.0%
Airgas, Inc. 251,900 5,365,470
Albemarle Corp. 221,360 6,419,440
Cambrex Corp. 259,200 6,972,480
Fuller (H.B.) Co. 330,860 9,409,658
MacDermid, Inc. 308,000 10,838,520
Millennium Chemicals, Inc. (a) 356,600 5,327,604
Olin Corp. 176,900 3,157,665
Sensient Technologies Corp. 307,800 5,746,626
Spartech Corp. 392,800 9,780,720
------------
Chemicals Total 63,018,183
CONTAINERS & PACKAGING - 1.3%
Greif, Inc., Class A 359,600 12,564,424
Jarden Corp. (a) 124,050 4,405,016
Longview Fibre Co. 204,800 2,285,568
Peak International Ltd. (a) 244,650 1,712,550
------------
Containers & Packaging Total 20,967,558
METALS & MINING - 1.0%
GrafTech International Ltd. (a) 254,900 3,810,755
Hecla Mining Co. (a) 298,300 2,508,703
Northwest Pipe Co. (a) 276,650 4,011,425
Steel Dynamics, Inc. (a) 214,700 5,320,266
------------
Metals & Mining Total 15,651,149
PAPER & FOREST PRODUCTS - 0.7%
Buckeye Technologies, Inc. (a) 208,200 2,156,952
Glatfelter 331,440 3,725,386
Louisiana-Pacific Corp. 206,600 5,330,280
------------
Paper & Forest Products Total 11,212,618
------------
MATERIALS TOTAL 110,849,508
TELECOMMUNICATION SERVICES - 0.5%
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.4%
CT Communications, Inc. 208,400 2,882,172
General Communication, Inc.,
Class A (a) 397,300 3,615,430
------------
Diversified Telecommunication Services Total 6,497,602
WIRELESS TELECOMMUNICATION SERVICES - 0.1%
LCC International, Inc., Class A (a) 323,100 1,938,600
------------
Wireless Telecommunication Services Total 1,938,600
------------
TELECOMMUNICATION SERVICES TOTAL 8,436,202
See Accompanying Notes to Financial Statements.
54
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia Small Cap Fund
Shares Value ($)
------------ ------------
COMMON STOCKS - (CONTINUED)
UTILITIES - 2.5%
ELECTRIC UTILITIES - 0.2%
Idacorp, Inc. 102,800 3,073,720
------------
Electric Utilities Total 3,073,720
GAS UTILITIES - 2.0%
Cascade Natural Gas Corp. 92,550 2,016,665
New Jersey Resources Corp. 158,750 6,000,750
Northwest Natural Gas Co. 154,700 4,834,375
NUI Corp. 443,100 7,492,821
South Jersey Industries, Inc. 105,500 4,316,005
Southwest Gas Corp. 301,500 7,055,100
------------
Gas Utilities Total 31,715,716
WATER UTILITIES - 0.3%
American States Water Co. 85,150 2,077,660
Aqua America, Inc. 124,468 2,698,466
------------
Water Utilities Total 4,776,126
------------
UTILITIES TOTAL 39,565,562
TOTAL COMMON STOCKS
(Cost of $1,145,131,602) 1,393,443,619
INVESTMENT MANAGEMENT COMPANIES - 3.2%
iShares Russell 2000 Index Fund 385,000 45,276,000
iShares Russell 2000 Value Index Fund 30,000 5,134,500
------------
TOTAL INVESTMENT
MANAGEMENT COMPANIES
(Cost of $47,255,978) 50,410,500
CONVERTIBLE PREFERRED STOCK - 0.2%
FINANCIALS - 0.2%
INSURANCE - 0.2%
United Fire & Casualty Co.
Series A, 6.380%
(Cost of $3,425,000) 137,000 4,108,630
------------
Par ($) Value ($)
------------ ------------
SHORT-TERM OBLIGATION - 8.5%
Repurchase agreement with State
Street Bank & Trust Co., dated
03/31/04, due 04/01/04 at 0.960%,
collateralized by a U.S. Treasury
Bond maturing 08/15/19, market
value of $136,841,441 (repurchase
proceeds $134,151,577)
(Cost of $134,148,000) 134,148,000 134,148,000
------------
TOTAL INVESTMENTS - 100.0%
(COST OF $1,329,960,580) (D) 1,582,110,749
OTHER ASSETS & LIABILITIES, NET - 0.0% (639,716)
NET ASSETS - 100.0% 1,581,471,033
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing.
(b) Investments in affiliated companies at March 31, 2004:
An affiliated company is a company in which the Fund has ownership of at
least 5% of the voting shares outstanding
Security Name: Checkers Drive-In Restaurant, Inc.
Shares as of 09/30/03: 319,000
Shares purchased: 288,900
Shares as of 03/31/04: 607,900
Net realized gain or loss: $ --
Dividend income earned: $ --
Value at end of period: $ 7,385,985
Security Name: Cornell Companies, Inc.
Shares as of 09/30/03: 343,100
Shares purchased: 422,500
Shares as of 03/31/04: 765,600
Net realized gain or loss: $ --
Dividend income earned: $ --
Value at end of period: $ 8,857,992
Security Name: Unifirst Corp.
Shares as of 09/30/03: 422,800
Shares purchased: 50,000
Shares as of 03/31/04: 472,800
Net realized gain or loss: $ --
Dividend income earned: $ 33,960
Value at end of period: $13,039,824
(c) Represents fair value as determined in good faith under the direction of the
Board of Trustees.
(d) Cost for both financial statement and federal income tax purposes is the
same.
ACRONYM NAME
------- ----
ADR American Depositary Receipt
See Accompanying Notes to Financial Statements.
55
INVESTMENT PORTFOLIO____________________________________________________________
March 31, 2004 (Unaudited) Columbia Small Company Equity Fund
Shares Value ($)
------------ ------------
COMMON STOCKS - 99.5%
CONSUMER DISCRETIONARY - 16.8%
HOTELS, RESTAURANTS & LEISURE - 5.2%
Alliance Gaming Corp. (a) 151,600 4,870,908
Gaylord Entertainment Co. (a) 109,300 3,377,370
Pinnacle Entertainment, Inc. (a) 91,800 1,266,840
Scientific Games Corp., Class A (a) 234,600 4,391,712
Station Casinos, Inc. 190,400 8,409,968
------------
Hotels, Restaurants & Leisure Total 22,316,798
MEDIA - 4.3%
Cumulus Media, Inc., Class A (a) 116,000 2,318,840
Journal Communications, Inc. 62,400 1,248,000
Lin TV Corp., Class A (a) 171,000 4,071,510
Radio One, Inc., Class D (a) 142,700 2,639,950
Sinclair Broadcast Group, Inc.,
Class A (a) 397,800 4,972,500
TiVo, Inc. (a) 316,600 2,814,574
------------
Media Total 18,065,374
SPECIALTY RETAIL - 7.3%
Bombay Co., Inc. (a) 416,000 3,265,600
Cost Plus, Inc. (a) 128,700 5,373,225
Jarden Corp. (a) 291,750 10,360,042
Party City Corp. (a) 99,900 1,487,511
PETCO Animal Supplies, Inc. (a) 185,300 5,221,754
Sharper Image Corp. (a) 161,900 5,274,702
------------
Specialty Retail Total 30,982,834
------------
CONSUMER DISCRETIONARY TOTAL 71,365,006
CONSUMER STAPLES - 1.3%
FOOD & STAPLES RETAILING - 0.5%
Performance Food Group Co. (a) 58,700 2,016,345
------------
Food & Staples Retailing Total 2,016,345
FOOD PRODUCTS - 0.8%
American Italian Pasta Co., Class A 81,300 3,246,309
------------
Food Products Total 3,246,309
------------
CONSUMER STAPLES TOTAL 5,262,654
ENERGY - 4.1%
ENERGY EQUIPMENT & SERVICES - 2.0%
Key Energy Services, Inc. (a) 235,000 2,585,000
Maverick Tube Corp. (a) 128,200 3,019,110
Unit Corp. (a) 105,000 2,879,100
------------
Energy Equipment & Services Total 8,483,210
OIL & GAS - 2.1%
Patina Oil & Gas Corp. 136,900 3,593,625
Tom Brown, Inc. (a) 64,100 2,410,160
Western Gas Resources, Inc. 57,200 2,908,620
------------
Oil & Gas Total 8,912,405
------------
ENERGY TOTAL 17,395,615
Shares Value ($)
------------ ------------
FINANCIALS - 10.2%
CAPITAL MARKETS - 2.3%
Investors Financial Services Corp. 132,500 5,474,900
Jefferies Group, Inc. 128,300 4,532,839
------------
Capital Markets Total 10,007,739
COMMERCIAL BANKS - 3.6%
Boston Private Financial Holdings, Inc. 125,800 3,522,400
East West Bancorp, Inc. 84,400 4,726,400
Mercantile Bank Corp. 97,300 3,454,150
Prosperity Bancshares, Inc. 148,000 3,486,880
------------
Commercial Banks Total 15,189,830
DIVERSIFIED FINANCIAL SERVICES - 2.3%
Commercial Capital Bancorp, Inc. (a) 186,900 4,283,748
MTC Technologies, Inc. (a) 135,700 3,407,427
National Financial Partners Corp. 59,900 1,931,775
------------
Diversified Financial Services Total 9,622,950
INSURANCE - 2.0%
Infinity Property & Casualty Corp. 154,200 4,846,506
Philadelphia Consolidated
Holding Co. (a) 66,900 3,880,200
------------
Insurance Total 8,726,706
------------
FINANCIALS TOTAL 43,547,225
HEALTH CARE - 23.5%
BIOTECHNOLOGY - 6.3%
BioMarin Pharmaceuticals, Inc. (a) 374,100 2,813,232
Ciphergen Biosystems, Inc. (a) 190,000 1,582,700
Cytogen Corp. (a) 161,300 1,980,764
Exact Sciences Corp. (a) 228,800 1,777,776
Ilex Oncology, Inc. (a) 146,000 3,492,320
NeoPharm, Inc. (a) 96,200 1,804,712
Neurocrine Biosciences, Inc. (a) 67,400 3,983,340
Protein Design Labs, Inc. (a) 157,900 3,761,178
Serologicals Corp. (a) 50,400 1,028,160
Telik, Inc. (a) 164,300 4,409,812
------------
Biotechnology Total 26,633,994
HEALTH CARE EQUIPMENT & SUPPLIES - 7.2%
Bio-Rad Laboratories, Inc., Class A (a) 50,050 2,821,319
Cardiac Science, Inc. (a) 542,700 2,371,599
Conceptus, Inc. (a) 227,400 2,710,608
Cytyc Corp. (a) 209,800 4,668,050
Integra LifeSciences Holdings Corp. (a) 118,400 3,625,408
LCA-Vision, Inc. (a) 120,000 2,816,400
Medical Action Industries, Inc. (a) 238,000 4,864,720
Palomar Medical Technologies, Inc. (a) 67,900 1,224,916
SonoSite, Inc. (a) 155,600 3,318,948
SurModics, Inc. (a) 103,900 2,068,649
------------
Health Care Equipment & Supplies Total 30,490,617
See Accompanying Notes to Financial Statements.
56
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia Small Company Equity Fund
Shares Value ($)
------------ ------------
COMMON STOCKS - (CONTINUED)
HEALTH CARE - (CONTINUED)
HEALTH CARE PROVIDERS & SERVICES - 2.4%
Advisory Board Co. (a) 108,800 3,976,640
America Service Group, Inc. (a) 63,700 2,184,910
LifePoint Hospitals, Inc. (a) 90,800 2,936,472
U.S. Physical Therapy, Inc. (a) 86,500 1,193,700
------------
Health Care Providers & Services Total 10,291,722
PHARMACEUTICALS - 7.6%
Advancis Pharmaceutical Corp. (a) 253,863 2,320,308
Atrix Laboratories, Inc. (a) 100,800 2,570,400
Caraco Pharmaceutical Laboratories
Ltd. (a) 88,800 902,208
DepoMed, Inc. (a) 372,700 2,918,241
DOV Pharmaceutical, Inc. (a) 208,100 3,229,712
Nektar Therapeutics (a) 207,200 4,471,376
Noven Pharmaceuticals, Inc. (a) 187,700 4,029,919
Renovis, Inc. (a) 214,400 2,176,160
Salix Pharmaceuticals Ltd. (a) 184,200 5,345,484
Taro Pharmaceuticals Industries (a) 78,600 4,558,014
------------
Pharmaceuticals Total 32,521,822
------------
HEALTH CARE TOTAL 99,938,155
INDUSTRIALS - 12.0%
AEROSPACE & DEFENSE - 0.8%
DRS Technologies, Inc. (a) 129,700 3,629,006
------------
Aerospace & Defense Total 3,629,006
AIR FREIGHT & LOGISTICS - 1.9%
EGL, Inc. (a) 284,000 5,100,640
UTI Worldwide, Inc. 64,300 2,873,567
------------
Air Freight & Logistics Total 7,974,207
COMMERCIAL SERVICES & SUPPLIES - 3.6%
Arbitron, Inc. (a) 98,200 3,953,532
Corporate Executive Board Co. 66,600 3,130,200
Navigant Consulting, Inc. (a) 130,100 2,631,923
NCO Group, Inc. (a) 124,100 2,900,217
Sylvan Learning Systems, Inc. (a) 76,500 2,685,915
------------
Commercial Services & Supplies Total 15,301,787
CONSTRUCTION & ENGINEERING - 0.8%
Chicago Bridge & Iron Co. NV,
N.Y. Registered Shares 119,000 3,311,770
------------
Construction & Engineering Total 3,311,770
ELECTRICAL EQUIPMENT - 0.6%
Plug Power, Inc. (a) 320,000 2,470,400
------------
Electrical Equipment Total 2,470,400
MACHINERY - 1.1%
Cuno, Inc. (a) 63,875 2,866,710
RAE Systems, Inc. (a) 486,600 1,975,596
------------
Machinery Total 4,842,306
Shares Value ($)
------------ ------------
ROAD & RAIL - 2.8%
Genesee & Wyoming, Inc., Class A (a) 149,550 3,693,885
Heartland Express, Inc. 126,700 2,886,226
Old Dominion Freight Line, Inc. (a) 74,000 2,493,800
Sirva, Inc. (a) 122,000 2,942,640
------------
Road & Rail Total 12,016,551
TRADING COMPANIES & DISTRIBUTORS - 0.4%
Aceto Corp. 100,900 1,585,139
------------
Trading Companies & Distributors Total 1,585,139
------------
INDUSTRIALS TOTAL 51,131,166
INFORMATION TECHNOLOGY - 29.9%
COMMUNICATIONS EQUIPMENT - 2.7%
F5 Networks, Inc. (a) 92,500 3,131,125
Finisar Corp. (a) 773,000 1,685,140
Inter-Tel, Inc. 66,200 1,989,972
Netopia, Inc. (a) 195,100 2,391,926
NMS Communications Corp. (a) 306,100 2,191,676
------------
Communications Equipment Total 11,389,839
COMPUTERS & PERIPHERALS - 2.1%
Applied Films Corp. (a) 120,300 3,356,370
Cray, Inc. (a) 321,900 2,134,197
Pinnacle Systems, Inc. (a) 361,200 3,261,636
------------
Computers & Peripherals Total 8,752,203
ELECTRONIC EQUIPMENT & INSTRUMENTS - 3.3%
Anixter International, Inc. (a) 89,400 2,525,550
Coherent, Inc. (a) 103,000 2,707,870
Global Imaging Systems, Inc. (a) 131,200 4,358,464
Itron, Inc. (a) 170,000 3,163,700
Planar Systems, Inc. (a) 82,300 1,171,129
------------
Electronic Equipment & Instruments Total 13,926,713
INTERNET SOFTWARE & SERVICES - 3.7%
Corillian Corp. (a) 439,500 2,175,525
Digital River, Inc. (a) 154,700 3,621,527
Digitas, Inc. (a) 395,000 4,064,550
Equinix, Inc. (a) 68,700 2,487,696
PEC Solutions, Inc. (a) 93,700 1,238,714
Quovadx, Inc. (a) 281,200 1,034,816
Telecommunication Systems, Inc.,
Class A (a) 181,400 1,306,080
------------
Internet Software & Services Total 15,928,908
IT SERVICES - 0.2%
GRIC Communications, Inc. (a) 257,100 861,285
------------
IT Services Total 861,285
See Accompanying Notes to Financial Statements.
57
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia Small Company Equity Fund
Shares Value ($)
------------ ------------
COMMON STOCKS - (CONTINUED)
INFORMATION TECHNOLOGY - (CONTINUED)
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 11.6%
Artisan Components, Inc. (a) 235,700 5,253,753
August Technology Corp. (a) 172,200 2,583,000
Brooks Automation, Inc. (a) 185,600 3,893,888
DSP Group, Inc. (a) 87,100 2,241,083
Entegris, Inc. (a) 443,800 5,618,508
FEI Co. (a) 136,400 2,980,340
Integrated Circuit Systems, Inc. (a) 78,900 1,974,867
IXYS Corp. (a) 425,300 3,997,820
Lattice Semiconductor Corp. (a) 201,100 1,755,603
Mykrolis Corp. (a) 221,700 3,161,442
Silicon Image, Inc. (a) 427,300 4,401,190
Silicon Storage Technology, Inc. (a) 439,500 5,687,130
Skyworks Solutions, Inc. (a) 183,100 2,134,946
Transmeta Corp. (a) 621,300 2,460,348
Zoran Corp. (a) 80,000 1,388,800
------------
Semiconductors & Semiconductor
Equipment Total 49,532,718
SOFTWARE - 6.3%
Activision, Inc. (a) 197,850 3,129,987
Captiva Software Corp. (a) 276,200 3,822,608
Epicor Software Corp. (a) 165,700 2,198,839
Magma Design Automation, Inc. (a) 128,900 2,695,299
Manhattan Associates, Inc. (a) 151,500 4,211,700
Micromuse, Inc. (a) 412,700 3,219,060
OpenTV Corp., Class A (a) 669,100 2,161,193
ScanSoft, Inc. (a) 205,600 1,149,304
Take-Two Interactive Software, Inc. (a) 58,200 2,140,596
Verity, Inc. (a) 143,600 1,963,012
------------
Software Total 26,691,598
------------
INFORMATION TECHNOLOGY TOTAL 127,083,264
MATERIALS - 1.2%
CHEMICALS - 0.5%
Landec Corp. (a) 254,500 2,188,700
------------
Chemicals Total 2,188,700
CONSTRUCTION MATERIALS - 0.3%
AMCOL International Corp. 69,100 1,205,795
------------
Construction Materials Total 1,205,795
METALS & MINING - 0.4%
Steel Technologies, Inc. 95,400 1,843,128
------------
Metals & Mining Total 1,843,128
------------
MATERIALS TOTAL 5,237,623
Shares Value ($)
------------ ------------
TELECOMMUNICATION SERVICES - 0.5%
WIRELESS TELECOMMUNICATION SERVICES - 0.5%
At Road, Inc. (a) 190,300 2,334,981
------------
Wireless Telecommunication Services Total 2,334,981
------------
TELECOMMUNICATION SERVICES TOTAL 2,334,981
TOTAL COMMON STOCKS
(Cost of $327,410,125) 423,295,689
TOTAL INVESTMENTS - 99.5%
(COST OF $327,410,125) (B) 423,295,689
OTHER ASSETS & LIABILITIES, NET - 0.5% 2,246,230
NET ASSETS - 100.0% 425,541,919
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing.
(b) Cost for both financial statement and federal income tax purposes is the
same.
ACRONYM NAME
------- ----
ADR American Depositary Receipt
See Accompanying Notes to Financial Statements.
58
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STATEMENTS OF ASSETS AND LIABILITIES____________________________________________
March 31, 2004 (Unaudited) Columbia Equity Funds
COLUMBIA COLUMBIA COLUMBIA
ASSET LARGE CAP DISCIPLINED
ALLOCATION GROWTH VALUE
FUND ($) FUND ($) FUND ($)
- -------------------------------------------------------------------------------------------
ASSETS
Unaffiliated investments, at cost 412,680,430 843,240,055 375,507,542
Affiliated investments, at cost -- -- --
------------ -------------- ------------
Unaffiliated investments, at value 471,613,886 1,008,201,391 427,304,906
Affiliated investments, at value -- -- --
Cash -- 315 --
Foreign currency
(cost of $554,763) -- -- --
Receivable for:
Investments sold 1,365,244 4,636,420 --
Fund shares sold 584,815 1,182,867 674,488
Dividends 479,068 906,900 612,085
Interest 1,566,775 157 82
Foreign tax reclaim 23,774 -- --
Deferred compensation plan 24,326 46,992 19,192
Other assets -- -- 10,190
------------ -------------- ------------
Total assets 475,657,888 1,014,975,042 428,620,943
- -------------------------------------------------------------------------------------------
LIABILITIES
Payable to custodian bank 87,093 -- 10,210
Payable for:
Investments purchased 1,796,364 9,776,103 553,360
Fund shares repurchased 589,469 3,228,010 --
Investment advisory fee 300,627 610,398 266,756
Administration fee 26,982 56,522 23,830
Transfer agent fee 238,002 303,970 121,735
Pricing and bookkeeping fees 14,200 87 3,681
Trustees' fees 621 -- --
Custody fee -- -- --
Distribution and service fees 96,259 109,988 45,269
Deferred compensation plan 24,326 46,992 19,192
Foreign capital gains tax 78,132 -- --
Other liabilities 7,702 5,002 --
------------ -------------- ------------
Total liabilities 3,259,777 14,137,072 1,044,033
NET ASSETS 472,398,111 1,000,837,970 427,576,910
- -------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF
Paid-in capital 434,325,241 978,318,527 418,123,682
Undistributed (overdistributed)
net investment income (1,233,098) -- (643,460)
Accumulated net investment loss -- (1,549,717) --
Accumulated net realized gain (loss) (19,552,406) (140,892,176) (41,700,676)
Unrealized appreciation (depreciation) on:
Investments 58,933,456 164,961,336 51,797,364
Foreign currency translations 3,050 -- --
Foreign capital gains tax (78,132) -- --
------------ -------------- ------------
NET ASSETS 472,398,111 1,000,837,970 427,576,910
COLUMBIA COLUMBIA
INTER COLUMBIA COLUMBIA SMALL
NATIONAL LARGE CAP SMALL COMPANY
EQUITY CORE CAP EQUITY
FUND ($) FUND ($) FUND ($) FUND ($)
- -----------------------------------------------------------------------------------------------------------
ASSETS
Unaffiliated investments, at cost 412,541,703 395,445,570 1,306,960,544 327,410,125
Affiliated investments, at cost -- -- 23,000,036
------------ ------------ -------------- ------------
Unaffiliated investments, at value 500,935,522 429,341,090 1,552,826,948 423,295,689
Affiliated investments, at value -- -- 29,283,801 --
Cash 80,019 -- 1,357,558 --
Foreign currency
(cost of $554,763) 557,892 -- -- --
Receivable for:
Investments sold 3,841,066 5,384,903 4,845,948 5,561,031
Fund shares sold 1,368,107 250,519 1,952,756 1,230,444
Dividends 1,808,874 329,745 777,325 36,186
Interest 210 -- 3,577 --
Foreign tax reclaim 390,900 -- -- --
Deferred compensation plan 19,639 22,760 19,210 17,211
Other assets -- 2,100 39,158 8,489
------------ ------------ -------------- ------------
Total assets 509,002,229 435,331,117 1,591,106,281 430,149,050
- -----------------------------------------------------------------------------------------------------------
LIABILITIES
Payable to custodian bank -- 625,438 -- 665,505
Payable for:
Investments purchased 3,195,112 -- 7,254,587 2,201,476
Fund shares repurchased 1,763,506 973,149 1,147,601 1,289,235
Investment advisory fee 262,146 274,909 905,672 265,668
Administration fee 25,914 25,512 86,067 23,733
Transfer agent fee 116,997 243,439 42,295 114,291
Pricing and bookkeeping fees 9,772 3,591 -- 3,679
Trustees' fees 603 -- -- --
Custody fee 11,771 -- -- --
Distribution and service fees 16,935 75,502 179,816 26,333
Deferred compensation plan 19,639 22,760 19,210 17,211
Foreign capital gains tax 1,056,547 -- -- --
Other liabilities 46,986 5,973 -- --
------------ ------------ -------------- ------------
Total liabilities 6,525,928 2,250,273 9,635,248 4,607,131
NET ASSETS 502,476,301 433,080,844 1,581,471,033 425,541,919
- -----------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF
Paid-in capital 743,381,471 382,972,806 1,302,123,224 392,605,558
Undistributed (overdistributed)
net investment income 1,298,611 -- -- --
Accumulated net investment loss -- (282,499) (1,308,760) (1,985,793)
Accumulated net realized gain (loss) (329,608,093) 16,495,017 28,506,400 (60,963,410)
Unrealized appreciation (depreciation) on:
Investments 88,393,819 33,895,520 252,150,169 95,885,564
Foreign currency translations 67,040 -- -- --
Foreign capital gains tax (1,056,547) -- -- --
------------ ------------ -------------- ------------
NET ASSETS 502,476,301 433,080,844 1,581,471,033 425,541,919
See Accompanying Notes to Financial Statements.
60
STATEMENTS OF ASSETS AND LIABILITIES____________________________________________
Columbia Equity Funds
COLUMBIA
COLUMBIA COLUMBIA COLUMBIA INTER
ASSET LARGE CAP DISCIPLINED NATIONAL
ALLOCATION GROWTH VALUE EQUITY
FUND ($) FUND ($) FUND ($) FUND ($)
- --------------------------------------------------------------------------------------------------
NET ASSETS
Class A 2,134,336 3,644,250 1,819,706 742,597
Class B 4,164,011 2,539,339 1,504,047 739,017
Class C 416,735 603,826 254,579 95,675
Class G 51,547,206 54,427,906 9,686,466 5,556,803
Class T 197,475,373 244,261,783 139,988,117 46,484,118
Class Z 216,660,450 695,360,866 274,323,995 448,858,091
- --------------------------------------------------------------------------------------------------
SHARES OF BENEFICIAL INTEREST OUTSTANDING
Class A 138,797 187,421 144,565 57,617
Class B 270,883 136,011 124,883 57,727
Class C 27,104 32,302 21,172 7,518
Class G 3,353,675 3,009,748 803,817 437,555
Class T 12,837,662 12,632,231 11,119,059 3,613,330
Class Z 14,095,496 35,232,477 21,399,717 34,300,006
- --------------------------------------------------------------------------------------------------
CLASS A
Net asset value per share (a) 15.38 19.44 12.59 12.89
Maximum sales charge 5.75% 5.75% 5.75% 5.75%
Maximum offering price per share (b) 16.32 20.63 13.36 13.68
- --------------------------------------------------------------------------------------------------
CLASS B
Net asset value and offering
price per share (a) 15.37 18.67 12.04 12.80
- --------------------------------------------------------------------------------------------------
CLASS C
Net asset value and offering
price per share (a) 15.38 18.69 12.02 12.73
- --------------------------------------------------------------------------------------------------
CLASS G
Net asset value and offering
price per share (a) 15.37 18.08 12.05 12.70
- --------------------------------------------------------------------------------------------------
CLASS T
Net asset value per share (a) 15.38 19.34 12.59 12.86
Maximum sales charge 5.75% 5.75% 5.75% 5.75%
Maximum offering price per share(b) 16.32 20.52 13.36 13.64
- --------------------------------------------------------------------------------------------------
CLASS Z
Net asset value, offering and
redemption price per share (c) 15.37 19.74 12.82 13.09
COLUMBIA
COLUMBIA COLUMBIA SMALL
LARGE CAP SMALL COMPANY
CORE CAP EQUITY
FUND ($) FUND ($) FUND ($)
- -------------------------------------------------------------------------------------
NET ASSETS
Class A 10,044,122 205,439,050 1,692,586
Class B 3,632,804 41,976,101 1,130,858
Class C 391,714 65,384,472 447,453
Class G 24,544,603 11,610,765 6,348,457
Class T 195,825,419 157,954,286 78,839,634
Class Z 198,642,182 1,099,106,359 337,082,931
- -------------------------------------------------------------------------------------
SHARES OF BENEFICIAL INTEREST OUTSTANDING
Class A 807,801 11,628,388 96,939
Class B 299,193 2,457,762 69,138
Class C 32,257 3,825,236 27,418
Class G 2,040,985 685,762 388,783
Class T 15,811,218 9,011,413 4,518,971
Class Z 15,931,887 61,637,296 18,294,704
- -------------------------------------------------------------------------------------
CLASS A
Net asset value per share (a) 12.43 17.67 17.46
Maximum sales charge 5.75% 5.75% 5.75%
Maximum offering price per share (b) 13.19 18.75 18.53
- -------------------------------------------------------------------------------------
CLASS B
Net asset value and offering
price per share (a) 12.14 17.08 16.36
- -------------------------------------------------------------------------------------
CLASS C
Net asset value and offering
price per share (a) 12.14 17.09 16.32
- -------------------------------------------------------------------------------------
CLASS G
Net asset value and offering
price per share (a) 12.03 16.93 16.33
- -------------------------------------------------------------------------------------
CLASS T
Net asset value per share (a) 12.39 17.53 17.45
Maximum sales charge 5.75% 5.75% 5.75%
Maximum offering price per share (b) 13.15 18.60 18.51
- -------------------------------------------------------------------------------------
CLASS Z
Net asset value, offering and
redemption price per share (c) 12.47 17.83 18.43
(a) Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge and redemption fees.
(b) On sales of $50,000 or more the offering price is reduced.
(c) Redemption price per share is equal to net asset value less any applicable
redemption fees.
See Accompanying Notes to Financial Statements.
61
STATEMENTS OF OPERATIONS________________________________________________________
For the Six Months Ended March 31, 2004 (Unaudited) Columbia Equity Funds
COLUMBIA
COLUMBIA COLUMBIA COLUMBIA INTER
ASSET LARGE CAP DISCIPLINED NATIONAL
ALLOCATION GROWTH VALUE EQUITY
FUND ($) FUND ($) FUND ($) FUND ($)
- ----------------------------------------------------------------------------------------------
NET INVESTMENT INCOME
INCOME
Dividends 2,420,960 4,363,906 5,134,994 3,753,158
Dividends from affiliates -- -- -- --
Interest 4,326,189 18,175 17,813 75,148
Foreign withholding tax (47,715) (21,070) -- (368,147)
---------- ---------- ----------- ----------
Total income 6,699,434 4,361,011 5,152,807 3,460,159
- ----------------------------------------------------------------------------------------------
EXPENSES
Investment advisory fee 1,797,494 3,681,374 1,522,159 2,059,163
Administration fee 160,576 338,705 135,979 154,428
Distribution fee:
Class B 12,506 6,957 3,286 1,842
Class C 1,125 2,372 564 315
Class G 177,827 184,016 34,931 17,695
Service fee:
Class A 2,167 3,578 1,793 585
Class B 4,158 2,308 1,096 614
Class C 373 791 188 105
Class G 82,074 84,931 16,122 8,167
Shareholder services fee - Class T 295,518 372,604 206,800 68,710
Transfer agent fee:
Class A 2,195 2,802 1,314 498
Class B 4,241 1,925 835 391
Class C 404 620 156 99
Class G 75,920 73,250 13,870 10,482
Class T 257,670 272,832 139,788 58,347
Class Z 282,939 680,189 233,832 171,017
Pricing and bookkeeping fees 73,654 56,203 28,887 41,695
Trustees' fees 6,751 6,385 6,249 6,249
Custody fee 96,886 15,983 6,077 92,789
Other expenses 67,398 112,771 81,570 78,756
Non-recurring costs (See Note 8) 3,215 6,792 2,895 3,341
Costs assumed by Investment Advisor
(See Note 8) (3,215) (6,792) (2,895) (3,341)
---------- ---------- ----------- ----------
Total expenses 3,401,876 5,900,596 2,435,496 2,771,947
Expenses waived or reimbursed
by Investment Advisor (12,117) (21,381) -- (576,380)
Fees waived by Transfer Agent:
Class A -- -- -- (20)
Class B -- -- -- (20)
Class C -- -- -- (4)
Class G -- -- -- (3,506)
Class T -- -- -- (13,850)
Class Z -- -- -- (13,970)
Custody earnings credit (242) -- (1) (321)
---------- ---------- ----------- ----------
Net expenses 3,389,517 5,879,215 2,435,495 2,163,876
---------- ---------- ----------- ----------
Net Investment Income (Loss) 3,309,917 (1,518,204) 2,717,312 1,296,283
COLUMBIA
COLUMBIA COLUMBIA SMALL
LARGE CAP SMALL COMPANY
CORE CAP EQUITY
FUND ($) FUND ($) FUND ($)
- -------------------------------------------------------------------------------
NET INVESTMENT INCOME
INCOME
Dividends 2,760,083 4,457,996 389,588
Dividends from affiliates -- 33,960 --
Interest 10,908 614,357 28,153
Foreign withholding tax (14,790) (13,029) (1,428)
---------- ---------- ----------
Total income 2,756,201 5,093,284 416,313
- -------------------------------------------------------------------------------
EXPENSES
Investment advisory fee 1,634,154 4,743,535 1,549,211
Administration fee 145,984 446,547 138,396
Distribution fee:
Class B 10,907 95,605 2,018
Class C 1,421 149,253 760
Class G 90,471 36,850 21,759
Service fee:
Class A 11,380 164,830 1,017
Class B 3,625 31,777 669
Class C 473 49,615 252
Class G 41,756 17,007 10,043
Shareholder services fee - Class T 295,274 228,020 113,748
Transfer agent fee:
Class A 12,427 47,145 1,002
Class B 3,679 9,831 610
Class C 475 14,610 216
Class G 49,173 5,797 14,111
Class T 271,998 65,783 104,578
Class Z 204,213 337,132 314,084
Pricing and bookkeeping fees 28,788 57,968 29,280
Trustees' fees 6,500 5,882 6,001
Custody fee 7,831 21,109 9,914
Other expenses 54,592 121,384 94,879
Non-recurring costs (See Note 8) 2,945 10,616 2,876
Costs assumed by Investment Advisor
(See Note 8)
(2,945) (10,616) (2,876)
---------- ---------- ----------
Total expenses 2,875,121 6,649,680 2,412,548
Expenses waived or reimbursed
by Investment Advisor -- (28,816) --
Fees waived by Transfer Agent:
Class A (101) -- (24)
Class B (35) -- (17)
Class C (4) -- (6)
Class G (4,614) -- (139)
Class T (2,030) -- (10,884)
Class Z (2,048) -- (7,211)
Custody earnings credit -- (4,518) (1,049)
---------- ---------- ----------
Net expenses 2,866,289 6,616,346 2,393,218
---------- ---------- ----------
Net Investment Income (Loss) (110,088) (1,523,062) (1,976,905)
See Accompanying Notes to Financial Statements.
62
STATEMENTS OF OPERATIONS________________________________________________________
Columbia Equity Funds
COLUMBIA
COLUMBIA COLUMBIA COLUMBIA INTER
ASSET LARGE CAP DISCIPLINED NATIONAL
ALLOCATION GROWTH VALUE EQUITY
FUND ($) FUND ($) FUND ($) FUND ($)
- --------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS, FOREIGN CURRENCY
AND FOREIGN CAPITAL GAINS TAX
Net realized gain (loss) on:
Investments 20,830,646 36,310,506 25,762,769 37,056,770
Foreign currency transactions (83,613) -- -- (634,755)
----------- ----------- ----------- -----------
Net realized gain 20,747,033 36,310,506 25,762,769 36,422,015
----------- ----------- ----------- -----------
Net change in unrealized
appreciation/depreciation on:
Investments 26,013,957 66,107,564 28,674,684 41,733,134
Foreign currency translations 2,569 -- -- 3,109
Foreign capital gains tax (4,030) -- -- 138,588
----------- ----------- ----------- -----------
Net change in unrealized
appreciation/depreciation 26,012,496 66,107,564 28,674,684 41,874,831
----------- ----------- ----------- -----------
Net Gain 46,759,529 102,418,070 54,437,453 78,296,846
----------- ----------- ----------- -----------
Net Increase Resulting from Operations 50,069,446 100,899,866 57,154,765 79,593,129
COLUMBIA
COLUMBIA COLUMBIA SMALL
LARGE CAP SMALL COMPANY
CORE CAP EQUITY
FUND ($) FUND ($) FUND ($)
- ---------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS, FOREIGN CURRENCY
AND FOREIGN CAPITAL GAINS TAX
Net realized gain (loss) on:
Investments 36,084,486 30,448,594 40,694,292
Foreign currency transactions -- -- --
---------- ----------- ----------
Net realized gain 36,084,486 30,448,594 40,694,292
---------- ----------- ----------
Net change in unrealized
appreciation/depreciation on:
Investments 8,540,235 179,829,229 47,683,562
Foreign currency translations -- -- --
Foreign capital gains tax -- -- --
---------- ----------- ----------
Net change in unrealized
appreciation/depreciation 8,540,235 179,829,229 47,683,562
---------- ----------- ----------
Net Gain 44,624,721 210,277,823 88,377,854
---------- ----------- ----------
Net Increase Resulting from Operations 44,514,633 208,754,761 86,400,949
See Accompanying Notes to Financial Statements.
63
STATEMENTS OF CHANGES IN NET ASSETS_____________________________________________
March 31, 2004 Columbia Equity Funds
COLUMBIA ASSET ALLOCATION FUND
--------------------------------------------
(UNAUDITED)
SIX MONTHS PERIOD YEAR
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, OCTOBER 31,
INCREASE (DECREASE) IN NET ASSETS: 2004 ($) 2003 (a)($) 2002 ($)
- ---------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income (loss) 3,309,917 8,020,538 9,550,438
Net realized gain (loss) on investments sold, futures
contracts, foreign currency transactions
and foreign capital gains tax 20,747,033 (10,461,088) (26,364,880)
Net change in unrealized appreciation/depreciation
of investments, futures contracts, foreign currency
translations and foreign capital gains tax 26,012,496 46,417,019 (54,121,169)
------------ ------------ ------------
Net increase (decrease) resulting from operations 50,069,446 43,976,469 (70,935,611)
- ---------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income:
Class A (20,536) (4,595) (817)
Class B (25,109) (9,663) (3,249)
Class C (2,220) (640) --
Class G (389,601) (666,378) (903,651)
Class T (2,148,565) (3,230,558) (4,182,650)
Class Z (2,778,574) (4,391,025) (3,849,053)
From net realized gains:
Class G -- -- --
Class T -- -- --
Class Z -- -- --
------------ ------------ ------------
Total distributions to shareholders (5,364,605) (8,302,859) (8,939,420)
- ---------------------------------------------------------------------------------------------------------
NET CAPITAL SHARE TRANSACTIONS (40,142,549) (3,427,997) (111,502,479)
Redemption Fees -- -- --
Net increase (decrease) in net assets 4,562,292 32,245,613 (191,377,510)
- ---------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 467,835,819 435,590,206 626,967,716
End of period 472,398,111 467,835,819 435,590,206
------------ ------------ ------------
Undistributed (overdistributed) net investment income
at end of period (1,233,098) 821,590 1,115,554
Accumulated net investment loss at end of period -- -- --
COLUMBIA LARGE CAP GROWTH FUND
--------------------------------------------------
(UNAUDITED)
SIX MONTHS PERIOD YEAR
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, OCTOBER 31,
INCREASE (DECREASE) IN NET ASSETS: 2004 ($) 2003 (a)($) 2002 ($)
- ---------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income (loss) (1,518,204) 831,687 1,842,652
Net realized gain (loss) on investments sold, futures
contracts, foreign currency transactions
and foreign capital gains tax 36,310,506 (33,599,244) (95,984,198)
Net change in unrealized appreciation/depreciation
of investments, futures contracts, foreign currency
translations and foreign capital gains tax 66,107,564 118,125,297 (145,463,165)
-------------- -------------- --------------
Net increase (decrease) resulting from operations 100,899,866 85,357,740 (239,604,711)
- ---------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income:
Class A -- (123) --
Class B -- -- --
Class C -- -- --
Class G -- -- --
Class T -- (2,326,221) --
Class Z (344,225) -- --
From net realized gains:
Class G -- -- --
Class T -- -- --
Class Z -- -- --
-------------- -------------- --------------
Total distributions to shareholders (344,225) (2,326,344) --
- ---------------------------------------------------------------------------------------------------------------
NET CAPITAL SHARE TRANSACTIONS (64,489,195) (121,172,860) (42,855,520)
Redemption Fees -- -- --
Net increase (decrease) in net assets 36,066,446 (38,141,464) (282,460,231)
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 964,771,524 1,002,912,988 1,285,373,219
End of period 1,000,837,970 964,771,524 1,002,912,988
-------------- -------------- --------------
Undistributed (overdistributed) net investment income
at end of period -- 312,712 1,807,369
Accumulated net investment loss at end of period (1,549,717) -- --
COLUMBIA DISCIPLINED VALUE FUND
---------------------------------------------
(UNAUDITED)
SIX MONTHS PERIOD YEAR
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, OCTOBER 31,
INCREASE (DECREASE) IN NET ASSETS: 2004 ($) 2003 (a)($) 2002 ($)
- -----------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income (loss) 2,717,312 1,773,200 (831,035)
Net realized gain (loss) on investments sold, futures
contracts, foreign currency transactions
and foreign capital gains tax 25,762,769 3,691,251 (68,065,195)
Net change in unrealized appreciation/depreciation
of investments, futures contracts, foreign currency
translations and foreign capital gains tax 28,674,684 41,060,980 (16,740,050)
------------ ------------- ------------
Net increase (decrease) resulting from operations 57,154,765 46,525,431 (85,636,280)
- -----------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income:
Class A (18,185) -- --
Class B (3,958) -- --
Class C (695) -- --
Class G (30,213) -- --
Class T (1,327,341) -- --
Class Z (3,747,192) -- --
From net realized gains:
Class G -- -- (732,810)
Class T -- -- (4,986,255)
Class Z -- -- (4,800,214)
------------ ------------- ------------
Total distributions to shareholders (5,127,584) -- (10,519,279)
- -----------------------------------------------------------------------------------------------------------
NET CAPITAL SHARE TRANSACTIONS 11,080,926 10,199,956 45,686,823
Redemption Fees -- -- --
Net increase (decrease) in net assets 63,108,107 56,725,387 (50,468,736)
- -----------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 364,468,803 307,743,416 358,212,152
End of period 427,576,910 364,468,803 307,743,416
------------ ------------- ------------
Undistributed (overdistributed) net investment income
at end of period (643,460) 1,766,812 --
Accumulated net investment loss at end of period -- -- (8,463)
COLUMBIA INTERNATIONAL EQUITY FUND
---------------------------------------------
(UNAUDITED)
SIX MONTHS PERIOD YEAR
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, OCTOBER 31,
INCREASE (DECREASE) IN NET ASSETS: 2004 ($) 2003 (a)($) 2002 ($)
- ----------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income (loss) 1,296,283 3,710,010 2,732,183
Net realized gain (loss) on investments sold, futures
contracts, foreign currency transactions
and foreign capital gains tax 36,422,015 (36,657,573) (215,475,392)
Net change in unrealized appreciation/depreciation
of investments, futures contracts, foreign currency
translations and foreign capital gains tax 41,874,831 95,365,607 143,822,027
------------ ------------- ------------
Net increase (decrease) resulting from operations 79,593,129 62,418,044 (68,921,182)
- ----------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income:
Class A (1,624) (309) (158)
Class B -- (51) (3,271)
Class C -- (1) --
Class G -- -- (46,997)
Class T (33,041) (276,228) (1,161,415)
Class Z (2,868,268) (4,085,135) (10,992,572)
From net realized gains:
Class G -- -- --
Class T -- -- --
Class Z -- -- --
------------ ------------- ------------
Total distributions to shareholders (2,902,933) (4,361,724) (12,204,413)
- ----------------------------------------------------------------------------------------------------------
NET CAPITAL SHARE TRANSACTIONS 31,173,184 (85,708,897) (94,416,667)
Redemption Fees 28,437 47,802 --
Net increase (decrease) in net assets 107,891,817 (27,604,775) (175,542,262)
- ----------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 394,584,484 422,189,259 597,731,521
End of period 502,476,301 394,584,484 422,189,259
------------ ------------- ------------
Undistributed (overdistributed) net investment income
at end of period 1,298,611 2,905,261 4,356,476
Accumulated net investment loss at end of period -- -- --
(a) The Fund changed its fiscal year end from October 31 to September 30.
See Accompanying Notes to Financial Statements.
64-65 Spread
STATEMENTS OF CHANGES IN NET ASSETS_____________________________________________
March 31, 2004 Columbia Equity Funds
COLUMBIA LARGE CAP CORE FUND
--------------------------------------------
(UNAUDITED)
SIX MONTHS PERIOD YEAR
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, OCTOBER 31,
INCREASE (DECREASE) IN NET ASSETS: 2004 ($) 2003 (a)($) 2002 ($)
- -------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income (loss) (110,088) 2,795,356 2,673,116
Net realized gain (loss) on investments sold, futures
contracts and foreign currency transactions 36,084,486 (16,524,653) (2,843,956)
Net change in unrealized appreciation/depreciation
of investments, futures contracts and foreign
currency translations 8,540,235 50,850,870 (132,810,615)
------------ ------------ ------------
Net increase (decrease) resulting from operations 44,514,633 37,121,573 (132,981,455)
- -------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income:
Class A (3,718) (17,426) (64)
Class B -- (86) --
Class C -- (41) --
Class G -- (34,472) --
Class T (53,896) (811,898) (264,222)
Class Z (307,876) (2,057,027) (2,074,328)
From net realized gains:
Class A -- -- (2,049)
Class B -- -- (3,781)
Class C -- -- --
Class G -- -- (1,681,983)
Class T -- -- (8,851,728)
Class Z -- -- (15,146,836)
------------ ------------ ------------
Total distributions to shareholders (365,490) (2,920,950) (28,024,991)
- -------------------------------------------------------------------------------------------------------
NET CAPITAL SHARE TRANSACTIONS (25,666,194) (171,845,720) (55,616,582)
Net increase (decrease) in net assets 18,482,949 (137,645,097) (216,623,028)
- -------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 414,597,895 552,242,992 768,866,020
End of period 433,080,844 414,597,895 552,242,992
------------ ------------ ------------
Undistributed (overdistributed) net investment income
at end of period -- 193,079 319,232
Accumulated net investment loss at end of period (282,499) -- --
COLUMBIA SMALL CAP FUND
------------------------------------------------
(UNAUDITED)
SIX MONTHS PERIOD YEAR
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, OCTOBER 31,
INCREASE (DECREASE) IN NET ASSETS: 2004 ($) 2003 (a)($) 2002 ($)
- -----------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income (loss) (1,523,062) 279,754 648,758
Net realized gain (loss) on investments sold, futures
contracts and foreign currency transactions 30,448,594 36,226,379 37,781,019
Net change in unrealized appreciation/depreciation
of investments, futures contracts and foreign
currency translations 179,829,229 154,698,131 (69,887,913)
-------------- -------------- ------------
Net increase (decrease) resulting from operations 208,754,761 191,204,264 (31,458,136)
- -----------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income:
Class A -- -- --
Class B -- -- --
Class C -- -- --
Class G -- -- --
Class T -- -- --
Class Z -- (450,747) (445,097)
From net realized gains:
Class A (2,842,592) (23,427) (12,287)
Class B (388,822) (27,700) (17,051)
Class C (673,375) (2,462) --
Class G (236,658) (479,909) (532,460)
Class T (3,762,956) (5,982,965) (9,651,542)
Class Z (26,575,680) (25,553,703) (37,414,810)
-------------- -------------- ------------
Total distributions to shareholders (34,480,083) (32,520,913) (48,073,247)
- -----------------------------------------------------------------------------------------------------------
NET CAPITAL SHARE TRANSACTIONS 391,468,218 246,841,891 158,244,656
Net increase (decrease) in net assets 565,742,896 405,525,242 78,713,273
- -----------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 1,015,728,137 610,202,895 531,489,622
End of period 1,581,471,033 1,015,728,137 610,202,895
-------------- -------------- ------------
Undistributed (overdistributed) net investment income
at end of period -- 214,302 80,108
Accumulated net investment loss at end of period (1,308,760) -- --
COLUMBIA SMALL COMPANY EQUITY FUND
--------------------------------------------
(UNAUDITED)
SIX MONTHS PERIOD YEAR
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, OCTOBER 31,
INCREASE (DECREASE) IN NET ASSETS: 2004 ($) 2003 (A)($) 2002 ($)
- -------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income (loss) (1,976,905) (3,035,547) (3,342,769)
Net realized gain (loss) on investments sold, futures
contracts and foreign currency transactions 40,694,292 (200,156) (93,471,017)
Net change in unrealized appreciation/depreciation
of investments, futures contracts and foreign
currency translations 47,683,562 77,738,196 (2,618,304)
------------ ------------ ------------
Net increase (decrease) resulting from operations 86,400,949 74,502,493 (99,432,090)
- -------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income:
Class A -- -- --
Class B -- -- --
Class C -- -- --
Class G -- -- --
Class T -- -- --
Class Z -- -- --
From net realized gains:
Class A -- -- --
Class B -- -- --
Class C -- -- --
Class G -- -- --
Class T -- -- --
Class Z -- -- --
------------ ------------ ------------
Total distributions to shareholders -- -- --
- -------------------------------------------------------------------------------------------------------
NET CAPITAL SHARE TRANSACTIONS (28,536,543) 9,112,934 (34,442,508)
Net increase (decrease) in net assets 57,864,406 83,615,427 (133,874,598)
- -------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 367,677,513 284,062,086 417,936,684
End of period 425,541,919 367,677,513 284,062,086
------------ ------------ ------------
Undistributed (overdistributed) net investment income
at end of period -- -- --
Accumulated net investment loss at end of period (1,985,793) (8,888) (7,647)
(a) The Fund changed its fiscal year end from October 31 to September 30.
See Accompanying Notes to Financial Statements.
66-67 Spread
STATEMENTS OF CHANGES IN NET ASSETS -- CAPITAL STOCK ACTIVITY___________________
March 31, 2004 Columbia Equity Funds
COLUMBIA ASSET ALLOCATION FUND
------------------------------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003 (a)(b) OCTOBER 31, 2002
------------------------- -------------------------- -------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($)
---------- ----------- ---------- ------------ ---------- -----------
CLASS A
Subscriptions 68,167 1,016,501 90,623 1,246,966 153 1,942
Distributions reinvested 1,342 19,935 313 4,381 46 643
Redemptions (17,175) (260,029) (7,781) (105,877) (877) (12,593)
---------- ----------- ---------- ------------ ---------- -----------
Net increase (decrease) 52,334 776,407 83,155 1,145,470 (678) (10,008)
CLASS B
Subscriptions 104,967 1,564,617 175,332 2,371,280 132 2,002
Distributions reinvested 1,525 22,613 641 8,683 226 3,147
Redemptions (16,999) (254,686) (16,090) (219,790) (4,930) (69,201)
---------- ----------- ---------- ------------ ---------- -----------
Net increase (decrease) 89,493 1,332,544 159,883 2,160,173 (4,572) (64,052)
CLASS C
Subscriptions 14,102 211,163 15,733 208,308 -- --
Distributions reinvested 127 1,886 38 520 -- --
Redemptions (492) (7,328) (2,404) (32,872) -- --
---------- ----------- ---------- ------------ ---------- -----------
Net increase 13,737 205,721 13,367 175,956 -- --
CLASS G
Subscriptions 28,505 424,965 60,925 796,644 280,333 4,078,242
Distributions reinvested 25,701 380,632 49,383 643,841 63,424 882,934
Redemptions (729,149) (10,840,228) (1,779,909) (23,798,027) (1,754,424) (24,005,581)
---------- ----------- ---------- ------------ ---------- -----------
Net decrease (674,943) (10,034,631) (1,669,601) (22,357,542) (1,410,667) (19,044,405)
CLASS T
Subscriptions 506,459 7,550,827 948,459 12,980,478 1,681,657 23,448,832
Distributions reinvested 140,599 2,084,072 238,021 3,138,892 287,807 4,060,095
Redemptions (1,339,307) (20,003,339) (3,052,027) (39,894,205) (5,963,835) (82,540,616)
---------- ----------- ---------- ------------ ---------- -----------
Net decrease (692,249) (10,368,440) (1,865,547) (23,774,835) (3,994,371) (55,031,689)
CLASS Z
Subscriptions 541,841 8,094,780 1,650,315 21,698,761 2,688,275 38,817,973
Proceeds received in
connection with merger -- -- 9,749,490 127,523,327 -- --
Distributions reinvested 153,538 2,274,315 279,463 3,688,536 246,822 3,482,666
Redemptions (2,161,027) (32,423,245) (8,860,695) (113,687,843) (5,622,405) (79,652,964)
---------- ----------- ---------- ------------ ---------- -----------
Net increase (decrease) (1,465,648) (22,054,150) 2,818,573 39,222,781 (2,687,308) (37,352,325)
COLUMBIA LARGE CAP GROWTH FUND
----------------------------------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003 (a)(c) OCTOBER 31, 2002
-------------------------- --------------------------- ---------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($)
---------- ------------ ----------- ------------ ----------- ------------
CLASS A
Subscriptions 123,104 2,354,797 127,594 2,227,933 675 14,224
Distributions reinvested -- -- 8 122 -- --
Redemptions (42,945) (819,262) (23,849) (418,221) (31,158) (561,125)
---------- ------------ ----------- ------------ ----------- ------------
Net increase (decrease) 80,159 1,535,535 103,753 1,809,834 (30,483) (546,901)
CLASS B
Subscriptions 105,436 1,948,457 73,152 1,201,742 76 1,377
Distributions reinvested -- -- -- -- -- --
Redemptions (29,143) (541,345) (26,733) (445,675) (2,768) (52,491)
---------- ------------ ----------- ------------ ----------- ------------
Net increase (decrease) 76,293 1,407,112 46,419 756,067 (2,692) (51,114)
CLASS C
Subscriptions 18,368 332,486 53,880 875,203 -- --
Distributions reinvested -- -- -- -- -- --
Redemptions (16,944) (309,097) (23,002) (386,398) -- --
---------- ------------ ----------- ------------ ----------- ------------
Net increase 1,424 23,389 30,878 488,805 -- --
CLASS G
Subscriptions 56,033 995,902 137,178 2,112,439 402,662 7,699,620
Distributions reinvested -- -- -- -- -- --
Redemptions (385,587) (6,861,944) (1,043,026) (16,470,137) (1,070,412) (18,399,523)
---------- ------------ ----------- ------------ ----------- ------------
Net decrease (329,554) (5,866,042) (905,848) (14,357,698) (667,750) (10,699,903)
CLASS T
Subscriptions 311,492 5,903,940 1,601,558 26,623,304 3,309,526 62,313,532
Distributions reinvested -- -- 12 186 -- --
Redemptions (1,154,204) (21,943,544) (3,101,612) (50,338,825) (5,906,627) (109,994,675)
---------- ------------ ----------- ------------ ----------- ------------
Net decrease (842,712) (16,039,604) (1,500,042) (23,715,335) (2,597,101) (47,681,143)
CLASS Z
Subscriptions 3,499,512 67,823,405 8,605,204 145,302,438 10,670,158 208,441,606
Proceeds received in
connection with merger -- -- -- -- -- --
Distributions reinvested 9,645 181,333 83,287 1,331,752 -- --
Redemptions (5,859,133) (113,554,323) (14,044,860) (232,788,723) (10,051,097) (192,318,065)
---------- ------------ ----------- ------------ ----------- ------------
Net increase (decrease) (2,349,976) (45,549,585) (5,356,369) (86,154,533) 619,061 16,123,541
(a) The Fund changed its fiscal year end from October 31 to September 30.
(b) Effective November 18, 2002, the Galaxy Asset Allocation Fund Prime A, Prime
B, Retail B, Retail A and Trust shares were reorganized as Liberty Asset
Allocation Fund Class A, Class B, Class G, Class T and Class Z shares,
respectively. Subsequently, the Fund began offering Class C shares.
Effective October 13, 2003, the Liberty Asset Allocation Fund was renamed
Columbia Asset Allocation Fund.
(c) Effective November 18, 2002, the Galaxy Equity Growth Fund Prime A, Prime B,
Retail B, Retail A and Trust shares were reorganized as Liberty Equity
Growth Fund Class A, Class B, Class G, Class T and Class Z shares,
respectively. Subsequently, the Fund began offering Class C shares.
Effective October 13, 2003, the Liberty Equity Growth Fund was renamed
Columbia Large Cap Growth Fund.
See Accompanying Notes to Financial Statements.
68-69 Spread
STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY____________________
March 31, 2004 Columbia Equity Funds
COLUMBIA DISCIPLINED VALUE FUND
------------------------------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003 (a)(b) OCTOBER 31, 2002
------------------------- ------------------------- --------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($)
---------- ----------- ---------- ----------- ---------- ------------
CLASS A
Subscriptions 72,452 875,768 245,472 2,488,497 --
Distributions reinvested 1,417 17,119 -- -- -- --
Redemptions (11,269) (141,291) (163,507) (1,646,171) -- --
---------- ----------- ---------- ----------- ---------- ------------
Net increase (decrease) 62,600 751,596 81,965 842,326 -- --
CLASS B
Subscriptions 97,472 1,139,625 48,835 490,115 --
Distributions reinvested 295 3,481 -- -- -- --
Redemptions (5,103) (60,694) (16,616) (170,281) -- --
---------- ----------- ---------- ----------- ---------- ------------
Net increase (decrease) 92,664 1,082,412 32,219 319,834 -- --
CLASS C
Subscriptions 35,729 407,794 34,288 342,474 --
Distributions reinvested 30 347 -- -- -- --
Redemptions (16,835) (188,556) (32,040) (326,333) -- --
---------- ----------- ---------- ----------- ---------- ------------
Net increase (decrease) 18,924 219,585 2,248 16,141 -- --
CLASS G
Subscriptions 9,233 106,086 23,830 227,695 122,965 1,530,736
Distributions reinvested 2,531 29,834 -- -- 56,061 730,490
Redemptions (262,994) (3,041,642) (791,814) (7,910,003) (485,678) (5,357,577)
---------- ----------- ---------- ----------- ---------- ------------
Net decrease (251,230) (2,905,722) (767,984) (7,682,308) (306,652) (3,096,351)
CLASS T
Subscriptions 270,153 3,282,140 712,384 7,479,651 1,461,025 18,997,313
Distributions reinvested 107,544 1,301,298 -- -- 365,484 4,923,064
Redemptions (892,897) (10,869,884) (1,921,056) (19,161,516) (3,436,236) (42,048,389)
---------- ----------- ---------- ----------- ---------- ------------
Net decrease (515,200) (6,286,446) (1,208,672) (11,681,865) (1,609,727) (18,128,012)
CLASS Z
Subscriptions 3,771,406 46,556,604 8,245,789 85,258,557 8,229,129 103,359,201
Distributions reinvested 106,883 1,311,703 -- -- 281,992 3,849,192
Redemptions (2,419,572) (29,648,806) (5,518,932) (56,872,729) (3,316,907) (40,297,207)
---------- ----------- ---------- ----------- ---------- ------------
Net increase (decrease) 1,458,717 18,219,501 2,726,857 28,385,828 5,194,214 66,911,186
COLUMBIA INTERNATIONAL EQUITY FUND
----------------------------------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003 (a)(c) OCTOBER 31, 2002
-------------------------- --------------------------- ---------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($)
---------- ------------ ----------- ------------ ----------- ------------
CLASS A
Subscriptions 41,006 505,852 365,782 3,760,494 43 500
Distributions reinvested 137 1,624 9 80 14 158
Redemptions (8,227) (97,878) (341,913) (3,639,588) (79) (773)
---------- ------------ ----------- ------------ ----------- ------------
Net increase (decrease) 32,916 409,598 23,878 120,986 (22) (115)
CLASS B
Subscriptions 57,206 678,799 63,174 632,499 -- --
Distributions reinvested -- -- 5 47 79 904
Redemptions (22,693) (261,063) (45,848) (459,615) (19,410) (169,123)
---------- ------------ ----------- ------------ ----------- ------------
Net increase (decrease) 34,513 417,736 17,331 172,931 (19,331) (168,219)
CLASS C
Subscriptions 69,999 820,676 136,603 1,296,905 -- --
Distributions reinvested -- -- -- -- -- --
Redemptions (63,084) (748,647) (136,000) (1,299,758) -- --
---------- ------------ ----------- ------------ ----------- ------------
Net increase (decrease) 6,915 72,029 603 (2,853) -- --
CLASS G
Subscriptions 4,112 49,057 7,418 69,394 29,664 335,436
Distributions reinvested -- -- -- -- 4,075 46,346
Redemptions (32,903) (398,712) (77,285) (731,060) (130,389) (1,400,567)
---------- ------------ ----------- ------------ ----------- ------------
Net decrease (28,791) (349,655) (69,867) (661,666) (96,650) (1,018,785)
CLASS T
Subscriptions 236,132 2,840,873 6,604,035 60,584,311 36,599,906 393,268,992
Distributions reinvested 2,717 32,174 29,476 267,640 93,635 1,067,845
Redemptions (540,242) (6,576,115) (7,380,277) (68,028,146) (37,921,896) (410,600,585)
---------- ------------ ----------- ------------ ----------- ------------
Net decrease (301,393) (3,703,068) (746,766) (7,176,195) (1,228,355) (16,263,748)
CLASS Z
Subscriptions 8,519,957 104,898,395 16,739,214 159,741,174 51,501,696 559,110,349
Distributions reinvested 34,063 410,115 125,382 1,158,531 339,109 3,916,708
Redemptions (5,753,345) (70,981,966) (25,020,075) (239,061,805) (58,357,513) (639,992,857)
---------- ------------ ----------- ------------ ----------- ------------
Net increase (decrease) 2,800,675 34,326,544 (8,155,479) (78,162,100) (6,516,708) (76,965,800)
(a) The Fund changed its fiscal year end from October 31 to September 30.
(b) Effective November 25, 2002, the Galaxy Equity Value Fund Retail B, Retail A
and Trust shares were reorganized as Liberty Equity Value Fund Class G,
Class T and Class Z shares, respectively. Subsequently, the Fund began
offering Class A, Class B and Class C shares. Effective October 13, 2003,
the Liberty Equity Value Fund was renamed Columbia Disciplined Value Fund.
(c) Effective November 18, 2002, the Galaxy International Equity Fund Prime A,
Prime B, Retail B, Retail A and Trust shares were reorganized as Liberty
International Equity Fund Class A, Class B, Class G, Class T and Class Z
shares, respectively. Subsequently, the Fund began offering Class C shares.
Effective October 13, 2003, the Liberty International Equity Fund was
renamed Columbia International Equity Fund.
See Accompanying Notes to Financial Statements.
70-71 Spread
STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY____________________
March 31, 2004 Columbia Equity Funds
COLUMBIA LARGE CAP CORE FUND
---------------------------------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003 (a)(b) OCTOBER 31, 2002
------------------------- --------------------------- ---------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($)
---------- ----------- ----------- ------------ ----------- ------------
CLASS A
Subscriptions 171,401 2,078,309 126,227 1,379,676 10 128
Proceeds received in
connection with merger -- -- 621,521 6,454,752 -- --
Distributions reinvested 298 3,571 1,676 16,670 35 466
Redemptions (38,427) (462,312) (76,403) (794,588) (3,221) (40,839)
---------- ----------- ----------- ------------ ----------- ------------
Net increase (decrease) 133,272 1,619,568 673,021 7,056,510 (3,176) (40,245)
CLASS B
Subscriptions 158,542 1,864,192 162,123 1,730,382 -- --
Distributions reinvested -- -- 9 86 237 3,106
Redemptions (19,061) (229,773) (8,016) (85,754) (3,283) (31,132)
---------- ----------- ----------- ------------ ----------- ------------
Net increase (decrease) 139,481 1,634,419 154,116 1,644,714 (3,046) (28,026)
CLASS C
Subscriptions 40,693 476,927 32,690 332,435 -- --
Distributions reinvested -- -- 4 41 -- --
Redemptions (28,779) (340,553) (12,351) (121,881) -- --
---------- ----------- ----------- ------------ ----------- ------------
Net increase 11,914 136,374 20,343 210,595 -- --
CLASS G
Subscriptions 18,501 218,596 44,266 449,389 162,505 1,998,005
Proceeds received in
connection with merger -- -- 1,226,272 12,420,359 -- --
Distributions reinvested -- -- 3,352 30,905 126,869 1,654,365
Redemptions (632,209) (7,446,672) (1,816,170) (18,640,817) (973,850) (10,728,602)
---------- ----------- ----------- ------------ ----------- ------------
Net increase (decrease) (613,708) (7,228,076) (542,280) (5,740,164) (684,476) (7,076,232)
CLASS T
Subscriptions 579,972 7,028,346 1,495,379 15,776,849 2,708,325 33,029,033
Distributions reinvested 4,431 52,863 82,213 836,757 675,947 8,936,751
Redemptions (1,406,881) (17,068,886) (2,878,020) (29,879,271) (5,908,323) (70,008,875)
---------- ----------- ----------- ------------ ----------- ------------
Net increase (decrease) (822,478) (9,987,677) (1,300,428) (13,265,665) (2,524,051) (28,043,091)
CLASS Z
Subscriptions 1,812,352 22,134,607 3,300,574 34,099,883 7,884,391 100,632,122
Proceeds received in
connection with merger -- -- 6,658,543 69,340,646 -- --
Distributions reinvested 7,263 87,150 86,880 913,137 1,177,076 15,587,396
Redemptions (2,795,897) (34,062,559) (26,833,257) (266,105,376) (11,419,815) (136,648,506)
---------- ----------- ----------- ------------ ----------- ------------
Net increase (decrease) (976,282) (11,840,802) (16,787,260) (161,751,710) (2,358,348) (20,428,988)
COLUMBIA SMALL CAP FUND
----------------------------------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003 (a)(c) OCTOBER 31, 2002
--------------------------- --------------------------- ---------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($)
----------- ------------ ----------- ------------ ----------- ------------
CLASS A
Subscriptions 8,492,956 144,659,580 4,098,552 58,433,179 11,215 157,443
Proceeds received in
connection with merger -- -- -- -- -- --
Distributions reinvested 166,652 2,743,095 1,737 21,912 683 9,710
Redemptions (787,452) (13,652,642) (360,646) (5,358,656) (7,291) (105,884)
----------- ------------ ----------- ------------ ----------- ------------
Net increase (decrease) 7,872,156 133,750,033 3,739,643 53,096,435 4,607 61,269
CLASS B
Subscriptions 1,761,569 29,139,652 756,403 10,430,015 9,728 132,259
Distributions reinvested 22,302 355,492 2,142 26,282 1,222 17,051
Redemptions (79,975) (1,306,663) (27,618) (373,156) (2,347) (33,156)
----------- ------------ ----------- ------------ ----------- ------------
Net increase (decrease) 1,703,896 28,188,481 730,927 10,083,141 8,603 116,154
CLASS C
Subscriptions 3,020,177 49,654,610 869,296 12,200,290 -- --
Distributions reinvested 37,782 603,008 192 2,361 -- --
Redemptions (90,504) (1,494,569) (11,707) (147,824) -- --
----------- ------------ ----------- ------------ ----------- ------------
Net increase 2,967,455 48,763,049 857,781 12,054,827 -- --
CLASS G
Subscriptions 8,934 144,317 28,276 350,209 429,423 6,235,998
Proceeds received in
connection with merger -- -- -- -- -- --
Distributions reinvested 14,619 230,995 38,236 465,333 38,027 526,290
Redemptions (45,300) (737,626) (99,176) (1,269,029) (111,919) (1,509,331)
----------- ------------ ----------- ------------ ----------- ------------
Net increase (decrease) (21,747) (362,314) (32,664) (453,487) 355,531 5,252,957
CLASS T
Subscriptions 660,542 11,021,936 2,163,625 28,267,215 6,479,808 92,202,077
Distributions reinvested 221,143 3,611,263 453,371 5,680,741 665,372 9,395,064
Redemptions (739,238) (12,471,883) (2,947,006) (38,209,114) (5,121,259) (70,792,166)
----------- ------------ ----------- ------------ ----------- ------------
Net increase (decrease) 142,447 2,161,316 (330,010) (4,261,158) 2,023,921 30,804,975
CLASS Z
Subscriptions 16,526,790 282,508,460 23,437,396 320,832,302 19,254,421 283,345,487
Proceeds received in
connection with merger -- -- -- -- -- --
Distributions reinvested 1,091,816 18,124,146 1,461,938 18,622,287 2,024,954 28,972,951
Redemptions (7,086,146) (121,664,953) (11,858,363) (163,132,456) (13,389,656) (190,309,137)
----------- ------------ ----------- ------------ ----------- ------------
Net increase (decrease) 10,532,460 178,967,653 13,040,971 176,322,133 7,889,719 122,009,301
(a) The Fund changed its fiscal year end from October 31 to September 30.
(b) Effective December 9, 2002, the Galaxy Large Cap Value Fund Prime A, Prime
B, Retail B, Retail A and Trust shares were reorganized as Liberty Large Cap
Core Fund (formerly known as Galaxy Growth & Income Fund) Class A, Class B,
Class G, Class T and Class Z shares, respectively. Subsequently, the Fund
began offering Class C shares. Effective October 13, 2003, the Liberty Large
Cap Core Fund was renamed Columbia Large Cap Core Fund.
(c) Effective November 18, 2002, the Galaxy Small Cap Value Fund Prime A,
Prime B, Retail B, Retail A and Trust shares were reorganized as Liberty
Small Cap Fund Class A, Class B, Class G, Class T and Class Z shares,
respectively. Subsequently, the Fund began offering Class C shares.
Effective October 13, 2003, the Liberty Small Cap Fund was renamed Columbia
Small Cap Fund.
See Accompanying Notes to Financial Statements.
72-73 Spread
STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY____________________
March 31, 2004 Columbia Equity Funds
COLUMBIA SMALL COMPANY EQUITY FUND
-------------------------------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003 (a)(b) OCTOBER 31, 2002
------------------------- -------------------------- --------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($)
---------- ----------- ---------- ------------ ---------- ------------
CLASS A
Subscriptions 83,724 1,398,264 47,106 619,478 -- --
Redemptions (14,038) (229,659) (19,853) (248,570) -- --
---------- ----------- ---------- ------------ ---------- ------------
Net increase 69,686 1,168,605 27,253 370,908 -- --
CLASS B
Subscriptions 60,770 949,797 15,904 207,848 -- --
Redemptions (6,943) (108,072) (593) (5,872) -- --
---------- ----------- ---------- ------------ ---------- ------------
Net increase 53,827 841,725 15,311 201,976 -- --
CLASS C
Subscriptions 26,204 410,921 14,632 187,755 -- --
Redemptions (3,039) (48,210) (10,379) (127,847) -- --
---------- ----------- ---------- ------------ ---------- ------------
Net increase 23,165 362,711 4,253 59,908 -- --
CLASS G
Subscriptions 4,568 69,345 15,704 176,262 358,543 5,343,587
Redemptions (118,158) (1,789,044) (372,314) (4,494,902) (561,965) (7,654,692)
---------- ----------- ---------- ------------ ---------- ------------
Net decrease (113,590) (1,719,699) (356,610) (4,318,640) (203,422) (2,311,105)
CLASS T
Subscriptions 138,229 2,239,369 1,610,555 19,278,621 7,332,857 103,731,584
Redemptions (359,940) (5,937,027) (1,992,911) (23,497,418) (7,849,704) (111,618,506)
---------- ----------- ---------- ------------ ---------- ------------
Net decrease (221,711) (3,697,658) (382,356) (4,218,797) (516,847) (7,886,922)
CLASS Z
Subscriptions 2,538,182 43,834,089 8,255,053 107,075,672 5,263,829 81,621,271
Redemptions (4,015,525) (69,326,316) (6,917,009) (90,058,093) (7,195,424) (105,865,752)
---------- ----------- ---------- ------------ ---------- ------------
Net increase (decrease) (1,477,343) (25,492,227) 1,338,044 17,017,579 (1,931,595) (24,244,481)
(a) The Fund changed its fiscal year end from October 31 to September 30.
(b) Effective November 18, 2002, the Galaxy Small Company Equity Fund Retail B,
Retail A and Trust shares were reorganized as Liberty Small Company Equity
Fund Class G, Class T and Class Z shares, respectively. Subsequently, the
Fund began offering Class A, Class B and Class C shares. Effective October
13, 2003, the Liberty Small Company Equity Fund was renamed Columbia Small
Company Equity Fund.
See Accompanying Notes to Financial Statements.
74
NOTES TO FINANCIAL STATEMENTS___________________________________________________
March 31, 2004 (Unaudited) Columbia Equity Funds
NOTE 1. ORGANIZATION
The Columbia Funds Trust XI (the "Trust") is a Massachusetts business trust
registered under the Investment Company Act of 1940, as amended, as an open-end
management investment company. Information presented in these financial
statements pertains to the following diversified portfolios (individually
referred to as a "Fund", collectively referred to as the "Funds"):
Columbia Asset Allocation Fund
Columbia Large Cap Growth Fund
Columbia Disciplined Value Fund
Columbia International Equity Fund
Columbia Large Cap Core Fund
Columbia Small Cap Fund
Columbia Small Company Equity Fund
INVESTMENT GOALS
The Columbia Asset Allocation Fund seeks a high total return by providing both a
current level of income greater than that provided by popular stock market
averages, as well as long-term growth in the value of the Fund's assets.
Columbia Large Cap Growth Fund, Columbia International Equity Fund and Columbia
Small Cap Fund seek long term capital appreciation. Columbia Disciplined Value
Fund seeks long term capital appreciation, with income as a secondary goal.
Columbia Large Cap Core Fund seeks to provide a relatively high total return
through long-term capital appreciation and current income. Columbia Small
Company Equity Fund seeks capital appreciation.
FUND SHARES
The Funds may issue an unlimited number of shares. Each Fund offers six classes
of shares: Class A, Class B, Class C, Class G, Class T and Class Z. Each share
class has its own sales charge and expense structure. Effective March 1, 2004,
the Columbia Small Cap Fund was closed to new investors.
Class A and Class T shares are subject to a front-end sales charge of 5.75%
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 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.
On October 13, 2003, the Liberty Asset Allocation Fund, Liberty Equity Growth
Fund, Liberty Equity Value Fund, Liberty International Equity Fund, Liberty
Large Cap Core Fund, Liberty Small Cap Fund and Liberty Small Company Equity
Fund were renamed Columbia Asset Allocation Fund, Columbia Large Cap Growth
Fund, Columbia Disciplined Value Fund, Columbia International Equity Fund,
Columbia Large Cap Core Fund, Columbia Small Cap Fund and Columbia Small Company
Equity Fund, respectively. Also on this date, the Liberty-Stein Roe Funds
Investment Trust was renamed Columbia Funds Trust XI.
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.
75
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia Equity Funds
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 Trustees, 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.
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 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 reliable, then these foreign securities will be valued at
their fair value using procedures approved by the Board of Trustees.
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 Trustees.
SECURITY TRANSACTIONS
Security transactions are accounted for on the trade date. Cost is determined
and gains (losses) are based upon the specific identification method for both
financial statement and federal income tax purposes.
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.
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 Fund becomes aware of
such, net of non-reclaimable tax withholdings.
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
76
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia Equity Funds
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, based on the relative net
assets of each class, for purposes of determining the net asset value 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.
DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income are declared and paid quarterly for each
Fund, with the exception of the Columbia International Equity Fund. The Columbia
International Equity Fund declares and pays dividends annually. Net realized
capital gains, if any, are distributed at least annually.
NOTE 3. FEDERAL TAX INFORMATION
The tax character of distributions paid during the period ended September 30,
2003 and the year ended October 31, 2002 was as follows:
SEPTEMBER 30, 2003
------------------------------
ORDINARY LONG-TERM
INCOME CAPITAL GAINS
----------- -------------
Columbia Asset Allocation Fund ...... $ 8,302,859 $ --
Columbia Large Cap Growth Fund ...... 2,326,344 --
Columbia International Equity Fund... 4,361,724 --
Columbia Large Cap Core Fund ........ 2,920,950 --
Columbia Small Cap Fund ............. 8,797,912 23,723,001
OCTOBER 31, 2002
------------------------------
ORDINARY LONG-TERM
INCOME CAPITAL GAINS
----------- -------------
Columbia Asset Allocation Fund....... $ 8,939,420 $ --
Columbia Disciplined Value Fund...... -- 10,519,279
Columbia International Equity Fund... 12,204,413 --
Columbia Large Cap Core Fund......... 2,339,161 25,685,830
Columbia Small Cap Fund.............. 8,625,684 39,447,563
77
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia Equity Funds
Unrealized appreciation and depreciation at March 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 Asset Allocation Fund....... $ 66,332,429 $ (7,949,098) $ 58,383,331
Columbia Large Cap Growth Fund....... 180,311,442 (15,350,106) 164,961,336
Columbia Disciplined Value Fund...... 60,537,550 (8,740,186) 51,797,364
Columbia International Equity Fund... 92,078,368 (3,684,549) 88,393,819
Columbia Large Cap Core Fund......... 42,701,366 (8,805,846) 33,895,520
Columbia Small Cap Fund.............. 314,912,315 (62,762,146) 252,150,169
Columbia Small Company Equity Fund... 106,348,161 (10,462,597) 95,885,564
The following capital loss carryforwards, determined as of September 30, 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:
COLUMBIA COLUMBIA COLUMBIA
ASSET LARGE CAP DISCIPLINED
ALLOCATION GROWTH VALUE
YEAR OF EXPIRATION FUND* FUND FUND
------------------------------------- -------------- -------------- --------------
2007................................. $ 260,595 $ -- $ --
2008................................. 330,406 -- --
2009................................. -- 41,527,758 --
2010................................. 28,548,737 99,339,708 65,721,738
2011................................. 5,941,365 22,217,091 --
-------------- -------------- --------------
Total................................ $ 35,081,103 $ 163,084,557 $ 65,721,738
-------------- -------------- --------------
COLUMBIA COLUMBIA COLUMBIA
INTERNATIONAL LARGE CAP COLUMBIA SMALL COMPANY
EQUITY CORE SMALL CAP EQUITY
YEAR OF EXPIRATION FUND* FUND FUND FUND
-------------------- ------------- -------------- -------------- --------------
2008................ $ 4,901,661 $ -- $ -- $ --
2009................ 104,830,434 -- -- 7,702,742
2010................ 219,682,429 2,882,225 -- 93,115,978
2011................ 36,290,283 16,616,641 -- --
------------- -------------- -------------- --------------
Total............... $ 365,704,807 $ 19,498,866 $ -- $ 100,818,720
------------- -------------- -------------- --------------
*The availability of a portion of these capital loss carryforwards
($591,001 with respect to the Columbia Asset Allocation Fund and $4,901,661
with respect to the Columbia International Equity Fund), which were acquired
on August 20, 2001 in connection with The Pillar Funds reorganization, may
be limited in a given year.
78
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia Equity Funds
Expired capital loss carryforwards, if any, are recorded as a reduction of
paid-in capital.
Utilization of these capital loss carryforwards above could be
subject to merger limitations imposed by the Internal Revenue Code.
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"). Columbia
receives a monthly investment advisory fee based on average daily net assets
from each of the Funds (excluding Columbia International Equity Fund and
Columbia Small Company Equity Fund) as follows:
ANNUAL
FEE
AVERAGE DAILY NET ASSETS RATE
------------------------ ------
First $500 million 0.75%
Next $500 million 0.70%
Next $500 million 0.65%
Next $500 million 0.60%
Over $2 billion 0.55%
For the period July 1, 2003 through October 31, 2003, Columbia voluntarily
waived its investment advisory fee of the Columbia Asset Allocation Fund by
0.03% annually of the Fund's average daily net assets.
Columbia receives a monthly investment advisory fee based on average daily net
assets of the Columbia International Equity Fund as follows:
ANNUAL
FEE
AVERAGE DAILY NET ASSETS RATE
------------------------ ------
First $50 million 1.15%
Next $50 million 0.95%
Over $100 million 0.85%
Columbia has voluntarily agreed to waive a portion of its investment advisory
fee for the Columbia International Equity Fund at an annual rate of 0.25% on the
Fund's average daily net assets. Columbia, at its discretion, may revise or
discontinue this arrangement any time.
Columbia receives a monthly investment advisory fee based on average daily net
assets of the Columbia Small Company Equity Fund as follows:
ANNUAL
FEE
AVERAGE DAILY NET ASSETS RATE
------------------------ ------
First $500 million 0.75%
Next $500 million 0.70%
Over $1 billion 0.65%
Prior to November 1, 2003, Columbia was entitled to receive a monthly investment
advisory fee from each Fund (excluding Columbia International Equity Fund) at
the annual rate of 0.75% of each Fund's average daily net assets. In addition,
Columbia also waived a portion of its investment advisory fee so that such fees
payable by the Funds were as follows:
ANNUAL
FEE
AVERAGE DAILY NET ASSETS RATE
------------------------ ------
First $500 million 0.75%
Next $500 million 0.70%
Next $500 million 0.65%
Next $500 million 0.60%
Over $2 billion 0.55%
For the six months ended March 31, 2004, the annualized effective investment
advisory fee rates for the Funds were as follows:
ANNUAL
FEE
RATE
------
Columbia Asset Allocation Fund 0.74%
Columbia Large Cap Growth Fund 0.72%
Columbia Disciplined Value Fund 0.75%
Columbia International Equity Fund 0.64%
Columbia Large Cap Core Fund 0.75%
Columbia Small Cap Fund 0.70%
Columbia Small Company Equity Fund 0.75%
ADMINISTRATION FEE
Columbia provides accounting and other services to the Funds for a monthly
administration fee at the annual rate of 0.067% of each Fund's average daily net
assets.
PRICING AND BOOKKEEPING FEES
Columbia is responsible for providing pricing and bookkeeping services to the
Funds under a pricing and bookkeeping agreement. Under a separate agreement (the
"Outsourcing Agreement"), Columbia has delegated those functions to State Street
Corporation
79
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia Equity Funds
("State Street"). Columbia pays the total fees collected to State Street under
the Outsourcing Agreement.
Under its pricing and bookkeeping agreement with the Funds, Columbia receives an
annual fee, in addition to fees for pricing services, based on the average daily
net assets of each Fund as follows:
ANNUAL
AVERAGE DAILY NET ASSETS FEE
-------------------------------------------- ---------
Under $50 million $ 25,000
Over $50 million but less than $200 million $ 35,000
Over $200 million but less than $500 million $ 50,000
Over $500 million but less than $1 billion $ 85,000
Over $1 billion $ 125,000
The annual fees for a Fund with more than 25% in non-domestic assets, as
measured on a monthly basis, will be 150% of the fees disclosed above. For
multiple class funds, Columbia is entitled to receive an additional $10,000 per
fund.
For the six months ended March 31, 2004, the annualized effective pricing and
bookkeeping fee rates for the Funds were as follows:
ANNUAL
FEE
RATE
--------
Columbia Asset Allocation Fund 0.031%
Columbia Large Cap Growth Fund 0.011%
Columbia Disciplined Value Fund 0.014%
Columbia International Equity Fund 0.018%
Columbia Large Cap Core Fund 0.013%
Columbia Small Cap Fund 0.009%
Columbia Small Company Equity Fund 0.014%
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, paid monthly, at the annual rate of $28.00 per open account. The
Transfer Agent also receives reimbursement for certain out-of-pocket expenses.
Prior to November 1, 2003, the Transfer Agent was entitled to receive a monthly
transfer agent fee based on a per-account charge or a minimum of $5,000
annually. The Transfer Agent was also entitled to receive reimbursement for
certain out-of-pocket expenses.
The Transfer Agent has voluntarily agreed to waive a portion of its transfer
agent fee for the Columbia International Equity Fund, Columbia Large Cap Core
Fund and Columbia Small Company Equity Fund. These arrangements may be revised
or discontinued by the Transfer Agent at any time.
For the period January 1, 2004 through March 31, 2004, the Transfer Agent waived
fees for the Funds as follows:
FEES
WAIVED
---------
Columbia International Equity Fund $ 15,708
Columbia Large Cap Core Fund 4,491
Columbia Small Company Equity Fund 9,072
For the period October 1, 2003 through December 31, 2003, the Transfer Agent
waived transfer agent fees as follows:
FEES WAIVED
---------------------
CLASS G CLASS T
--------- ---------
Columbia International
Equity Fund $ 3,326 $ 12,336
Columbia Large Cap
Core Fund 4,341 --
Columbia Small Company
Equity Fund -- 9,209
UNDERWRITING DISCOUNTS, SERVICE AND DISTRIBUTION FEES
Columbia Funds Distributor, Inc. (the "Distributor"), formerly Liberty Funds
Distributor, Inc., an indirect, wholly owned subsidiary of BOA, is the principal
underwriter of the Funds. For the six months ended March 31, 2004, the
Distributor has retained net underwriting discounts and CDSC fees as follows:
80
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March 31, 2004 (Unaudited) Columbia Equity Funds
FRONT-END
SALES CHARGE CDSC
------------------- ---------------------------------------------------
CLASS A CLASS T CLASS A CLASS B CLASS C CLASS G CLASS T
--------- ------- ------- -------- ------- -------- -------
Columbia Asset
Allocation Fund.................. $ 3,106 $ 3,446 $ -- $ 4,463 $ 40 $ -- $ --
Columbia Large Cap
Growth Fund...................... 5,512 9,125 -- 1,603 26 70,210 --
Columbia Disciplined Value Fund...... 2,650 2,986 -- 646 -- 10,041 --
Columbia International Equity Fund... 1,723 956 -- 7 -- 4,769 --
Columbia Large Cap Core Fund......... 5,451 4,011 -- 2,144 88 22,349 --
Columbia Small Cap Fund.............. 187,175 4,265 5 19,950 7,994 10,007 2
Columbia Small Company Equity Fund... 5,177 1,473 -- -- 10 6,342 --
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 CLASS B CLASS C CLASS G
------- ------- ------- -------
Columbia Asset Allocation Fund....... 0.10% 0.75% 0.75% 0.65%
Columbia Large Cap Growth Fund....... 0.10% 0.75% 0.75% 0.65%
Columbia Disciplined Value Fund...... 0.10% 0.75% 0.75% 0.65%
Columbia International Equity Fund... 0.10% 0.75% 0.75% 0.65%
Columbia Large Cap Core Fund......... 0.10% 0.75% 0.75% 0.65%
Columbia Small Cap Fund.............. 0.10% 0.75% 0.75% 0.65%
Columbia Small Company Equity Fund... 0.10% 0.75% 0.75% 0.65%
SERVICE FEE
-----------------------------------------
CLASS A CLASS B CLASS C CLASS G
------- ------- ------- -------
Columbia Asset Allocation Fund....... 0.25% 0.25% 0.25% 0.50%
Columbia Large Cap Growth Fund....... 0.25% 0.25% 0.25% 0.50%
Columbia Disciplined Value Fund...... 0.25% 0.25% 0.25% 0.50%
Columbia International Equity Fund... 0.25% 0.25% 0.25% 0.50%
Columbia Large Cap Core Fund......... 0.25% 0.25% 0.25% 0.50%
Columbia Small Cap Fund.............. 0.25% 0.25% 0.25% 0.50%
Columbia Small Company Equity Fund... 0.25% 0.25% 0.25% 0.50%
The Funds do not intend to pay total distribution and service fees in excess of
0.25% and 0.95% annually for Class A and Class G shares of each Fund,
respectively.
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 Funds 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% for Class T shares. The Funds do
not intend to pay more than 0.30% annually for Class T shareholder service fees.
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' Trustees may participate in a deferred compensation plan which
may be terminated at any time. Obligations of the plan will be paid solely out
of the Funds' assets.
81
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia Equity Funds
NOTE 5. PORTFOLIO INFORMATION
For the six months ended March 31, 2004, the cost
of purchases and proceeds from sales of securities, excluding short-term
obligations, were as follows:
OTHER INVESTMENT SECURITIES
---------------------------------
PURCHASES SALES
-------------- --------------
Columbia Asset Allocation Fund.......... $ 192,859,183 $ 231,477,645
Columbia Large Cap Growth Fund.......... 758,416,551 814,443,353
Columbia Disciplined Value Fund......... 192,753,655 184,741,321
Columbia International Equity Fund...... 225,759,985 202,257,793
Columbia Large Cap Core Fund............ 269,644,471 303,526,320
Columbia Small Cap Fund................. 441,991,325 115,712,835
Columbia Small Company Equity Fund...... 137,751,680 161,579,743
U.S. GOVERNMENT SECURITIES
---------------------------------
PURCHASES SALES
-------------- --------------
Columbia Asset Allocation Fund.......... $ 14,088,393 $ 14,922,447
NOTE 6. REDEMPTION FEES
Effective February 15, 2003, the Columbia International Equity 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 March
31, 2004, the redemption fees for the Class Z shares of the Columbia
International Equity Fund amounted to $28,437.
NOTE 7. LINE OF CREDIT
The Funds and other affiliated funds participate in a $350,000,000 credit
facility, which is used for temporary or emergency purposes to facilitate
portfolio liquidity. Interest is charged to the Funds based on its borrowings.
In addition, the Funds have agreed to pay commitment fees on its pro-rata
portion of the unutilized line of credit. The commitment fee is included in
"Other expenses" on the Statement of Operations. For the six months ended March
31, 2004, the Funds did not borrow under this arrangement.
NOTE 8. 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.
Investments in emerging market countries are subject to additional risk. The
risk of foreign investments is typically increased in less developed countries.
These countries are also more likely to experience high levels of inflation,
deflation or currency devaluation which could hurt their economies and
securities markets.
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
82
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia Equity Funds
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 risks 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
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.
For the six months ended March 31, 2004, Columbia has assumed legal, consulting
services and Trustees' fees incurred by the Funds in connection with these
matters as follows:
Columbia Asset Allocation Fund $ 3,215
Columbia Large Cap Growth Fund 6,792
Columbia Disciplined Value Fund 2,895
Columbia International Equity Fund 3,341
Columbia Large Cap Core Fund 2,945
Columbia Small Cap Fund 10,616
Columbia Small Company Equity Fund 2,876
NOTE 9. 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.
NOTE 10. COMPARABILITY OF FINANCIAL STATEMENTS
The fiscal year end of the Funds was changed from October 31 to September 30.
Accordingly, the Funds' 2004 fiscal year end will be September 30, 2004.
NOTE 11. BUSINESS COMBINATIONS AND MERGERS
As of the end of business on November 15, 2002, the Stein Roe Balanced Fund, a
separate series of the Trust, merged into the Trust shares of Galaxy Asset
Allocation Fund. The Galaxy Asset Allocation Fund received a tax-free transfer
of assets from the Stein Roe Balanced Fund as follows:
83
________________________________________________________________________________
March 31, 2004 (Unaudited) Columbia Equity Funds
SHARES NET ASSETS UNREALIZED
ISSUED RECEIVED APPRECIATION 1
--------------- ------------- ----------------
9,749,490 $ 127,523,327 $ 8,523,537
NET ASSETS NET ASSETS
NET ASSETS OF STEIN ROE OF GALAXY ASSET
OF GALAXY ASSET BALANCED FUND ALLOCATION FUND
ALLOCATION FUND IMMEDIATELY IMMEDIATELY
PRIOR TO PRIOR TO AFTER
COMBINATION COMBINATION COMBINATION
--------------- ------------- ----------------
$441,389,479 $127,523,327 $568,912,806
1 Unrealized appreciation is included in the Net Assets Received amount shown
above.
Also as of the end of business on November 15, 2002, subsequent to the merger
described above, the Galaxy Asset Allocation Fund, previously a fund of The
Galaxy Fund ("Galaxy"), a separate Massachusetts business trust, was reorganized
as the Liberty Asset Allocation Fund (currently known as Columbia Asset
Allocation Fund). Class A, Class B, Class G, Class T and Class Z shares were
issued in exchange for Prime A, Prime B, Retail B, Retail A and Trust shares,
respectively. Class C shares commenced operations on November 18, 2002.
Also as of the end of business on November 15, 2002, the Galaxy Equity Growth
Fund, previously a fund of Galaxy, was reorganized as the Liberty Equity Growth
Fund (currently known as Columbia Large Cap Growth Fund) with Class A, Class B,
Class G, Class T and Class Z shares issued in exchange for Prime A, Prime B,
Retail B, Retail A and Trust shares, respectively. Class C shares commenced
operations on November 18, 2002.
As of the end of business on November 22, 2002, the Galaxy Equity Value Fund,
previously a fund of Galaxy, was reorganized as the Liberty Equity Value Fund
(currently known as Columbia Disciplined Value Fund) with Class G, Class T and
Class Z shares issued in exchange for Retail B, Retail A and Trust shares,
respectively. Class A, Class B and Class C shares commenced operations on
November 25, 2002.
As of the end of business on November 15, 2002, the Galaxy International Equity
Fund, previously a fund of Galaxy, was reorganized as the Liberty International
Equity Fund (currently known as Columbia International Equity Fund) with Class
A, Class B, Class G, Class T and Class Z shares issued in exchange for Prime A,
Prime B, Retail B, Retail A and Trust shares, respectively. Class C shares
commenced operations on November 18, 2002.
As of the end of business on December 6, 2002, the Galaxy Large Cap Value Fund,
Retail A, Retail B and Trust shares merged into the Galaxy Growth & Income Fund,
Prime A, Retail B and Trust shares, respectively. The Galaxy Large Cap Value
Fund and Galaxy Growth & Income Fund were both previously funds of Galaxy. The
Galaxy Growth & Income Fund received a tax-free transfer of assets from Galaxy
Large Cap Value Fund as follows:
SHARES NET ASSETS UNREALIZED
ISSUED RECEIVED APPRECIATION 1
--------------- -------------- -------------
8,506,336 $ 88,215,75 $ 3,841,144
NET ASSETS OF NET ASSETS OF
NET ASSETS OF GALAXY LARGE GALAXY GROWTH
GALAXY GROWTH CAP VALUE FUND & INCOME FUND
& INCOME FUND IMMEDIATELY IMMEDIATELY
PRIOR TO PRIOR TO AFTER
COMBINATION COMBINATION COMBINATION
--------------- ------------- -------------
$ 560,578,780 $ 88,215,757 $ 648,794,537
1 Unrealized appreciation is included in the Net Assets Received amount shown
above.
Also as of the end of business on December 6, 2002, subsequent to the merger
described above, the Galaxy Growth & Income Fund was reorganized as the Liberty
Large Cap Core Fund (currently known as Columbia Large Cap Core Fund). Class A,
Class B, Class G, Class T and Class Z shares were issued in exchange for Prime
A, Prime B, Retail B, Retail A and Trust shares, respectively. Class C shares
commenced operations on December 9, 2002.
As of the end of business on November 15, 2002, the Galaxy Small Cap Value Fund,
previously a fund of Galaxy, was reorganized as the Liberty Small Cap Fund
(currently known as Columbia Small Cap Fund) with Class A, Class B, Class G,
Class T and Class Z shares issued in exchange for Prime A, Prime B, Retail B,
Retail A and Trust shares, respectively. Class C shares commenced operations on
November 18, 2002.
As of the end of business on November 15, 2002, the Galaxy Small Company Equity
Fund, previously a fund of Galaxy, was reorganized as the Liberty Small Company
Equity Fund (currently known as Columbia Small Company Equity Fund) with Class
G, Class T and Class Z shares issued in exchange for Retail B, Retail A and
Trust shares, respectively. Class A, Class B and Class C shares commenced
operations on November 18, 2002.
The accompanying statements of operations, statements of changes in net assets
and financial highlights for these funds represent the historical operations of
the Galaxy Asset Allocation Fund, Galaxy Equity Growth Fund, Galaxy
International Equity Fund, Galaxy Small Cap Value Fund and Galaxy Small Company
Equity Fund for periods prior to November 15, 2002, and the Galaxy Equity Value
Fund for periods prior to November 22, 2002 and the Galaxy Growth & Income Fund
for periods prior to December 6, 2002.
84
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FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Asset Allocation Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, SEPTEMBER 30,
CLASS A SHARES 2004 (a) 2003 (b)(c)
- ----------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.01 $ 12.86
- ----------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.10(e) 0.20(e)
Net realized and unrealized gain
(loss) on investments 1.44 1.17
---------- -------------
Total from investment operations 1.54 1.37
- ----------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.17) (0.22)
From net realized gains -- --
---------- -------------
Total distributions declared to shareholders (0.17) (0.22)
- ----------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 15.38 $ 14.01
Total return (g)(h) 11.03%(i) 10.80%(i)
- ----------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 1.40%(k) 1.49%(k)
Net investment income (j) 1.36%(k) 1.55%(k)
Waiver/reimbursement 0.01%(k) 0.01%(k)
Portfolio turnover rate 44%(i) 122%(i)
Net assets, end of period (000's) $ 2,134 $ 1,211
- ----------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
----------------------------------------------------
CLASS A SHARES 2002 2001 2000 1999 (d)
- -------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.95 $ 18.77 $ 17.73 $ 16.95
- -------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.26(f) 0.34(e) 0.39(e) 0.44
Net realized and unrealized gain
(loss) on investments (2.12)(f) (3.06) 1.36 1.17
------- -------- ------- --------
Total from investment operations (1.86) (2.72) 1.75 1.61
- -------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.23) (0.36) (0.40) (0.40)
From net realized gains -- (0.74) (0.31) (0.43)
------- -------- ------- --------
Total distributions declared to shareholders (0.23) (1.10) (0.71) (0.83)
- -------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.86 $ 14.95 $ 18.77 $ 17.73
Total return (g)(h) (12.53)% (15.08)% 10.15% 9.72%
- -------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 1.40% 1.26% 1.15% 1.16%
Net investment income (j) 1.73%(f) 2.07% 2.15% 2.27%
Waiver/reimbursement 0.13% 0.12% 0.15% 0.13%
Portfolio turnover rate 40% 65% 59% 135%
Net assets, end of period (000's) $ 43 $ 60 $ 186 $ 238
- -------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Asset Allocation Fund was renamed the
Columbia Asset Allocation Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Asset Allocation Fund, Prime A shares were
redesignated Liberty Asset Allocation Fund, Class A shares.
(d) The Fund began offering Prime A shares on November 1, 1998.
(e) Per share data was calculated using average shares outstanding during the
period.
(f) The Trust adopted the provisions of the AICPA Audit Guide for Investment
Companies effective November 1, 2001. The effect of the changes for the
year ended October 31, 2002 on the net investment income per share, net
realized and unrealized gain per share and the net ratio of net investment
income to average net assets is $(0.01), $0.01 and (0.05)%, respectively.
(g) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(h) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(i) Not annualized.
(j) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(k) Annualized.
86
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Asset Allocation Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, SEPTEMBER 30,
CLASS B SHARES 2004 (a) 2003 (b)(c)
- -------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.00 $ 12.85
- -------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.05(e) 0.12(e)
Net realized and unrealized gain
(loss) on investments 1.43 1.17
---------- -------------
Total from investment operations 1.48 1.29
- -------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.11) (0.14)
From net realized gains -- --
---------- -------------
Total distributions declared to shareholders (0.11) (0.14)
- -------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 15.37 $ 14.00
Total return (g) 10.58%(h)(i) 10.13%(h)(i)
- -------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 2.16%(k) 2.17%(k)
Net investment income (j) 0.62%(k) 0.95%(k)
Waiver/reimbursement 0.01%(k) 0.01%(k)
Portfolio turnover rate 44%(i) 122%(i)
Net assets, end of period (000's) $ 4,164 $ 2,539
- -------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
----------------------------------------------------
CLASS B SHARES 2002 2001 2000 1999 (d)
- --------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.93 $ 18.75 $ 17.71 $ 16.95
- --------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.14(f) 0.22(e) 0.26(e) 0.29
Net realized and unrealized gain
(loss) on investments (2.08)(f) (3.06) 1.35 1.19
------- -------- ------- ---------
Total from investment operations (1.94) (2.84) 1.61 1.48
- --------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.14) (0.24) (0.26) (0.29)
From net realized gains -- (0.74) (0.31) (0.43)
------- -------- ------- ---------
Total distributions declared to shareholders (0.14) (0.98) (0.57) (0.72)
- --------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.85 $ 14.93 $ 18.75 $ 17.71
Total return (g) (13.06)% (15.68)%(h) 9.29%(h) 8.91%(h)
- --------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 2.06% 1.99% 1.89% 1.90%
Net investment income (j) 1.07%(f) 1.34% 1.41% 1.53%
Waiver/reimbursement -- 0.04% 0.17% 0.18%
Portfolio turnover rate 40% 65% 59% 135%
Net assets, end of period (000's) $ 276 $ 389 $ 526 $ 519
- --------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Asset Allocation Fund was renamed the
Columbia Asset Allocation Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Asset Allocation Fund, Prime B shares were
redesignated Liberty Asset Allocation Fund, Class B shares.
(d) The Fund began offering Prime B shares on November 1, 1998.
(e) Per share data was calculated using average shares outstanding during the
period.
(f) The Trust adopted the provisions of the AICPA Audit Guide for Investment
Companies effective November 1, 2001. The effect of the changes for the
year ended October 31, 2002 on the net investment income per share, net
realized and unrealized gain per share and the net ratio of net investment
income to average net assets is $(0.01), $0.01 and (0.05)%, respectively.
(g) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(h) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(i) Not annualized.
(j) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(k) Annualized.
87
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Asset Allocation Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, SEPTEMBER 30,
CLASS C SHARES 2004 (a) 2003 (b)(c)
- ----------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.00 $ 13.08
- ----------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (d) 0.05 0.10
Net realized and unrealized gain on investments 1.44 0.93
----------- -------------
Total from investment operations 1.49 1.03
- ----------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.11) (0.11)
- ----------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 15.38 $ 14.00
Total return (e)(f)(g) 10.64% 7.93%
- ----------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (h)(i) 2.17% 2.28%
Net investment income (h)(i) 0.63% 0.85%
Waiver/reimbursement (i) 0.01% 0.01%
Portfolio turnover rate (g) 44% 122%
Net assets, end of period (000's) $ 417 $ 187
- ----------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Asset Allocation Fund was renamed the
Columbia Asset Allocation Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) Class C shares were initially offered on November 18, 2002. Per share data
and total return reflect activity from that date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(f) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(g) Not annualized.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
88
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Asset Allocation Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, SEPTEMBER 30,
CLASS G SHARES 2004 (a) 2003 (b)(c)
- ----------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.00 $ 12.84
- ----------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.05(d) 0.12(d)
Net realized and unrealized gain
(loss) on investments 1.43 1.17
----------- -------------
Total from investment operations 1.48 1.29
- ----------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED
TO SHAREHOLDERS:
From net investment income (0.11) (0.13)
From net realized gains -- --
----------- -------------
Total distributions
declared to shareholders (0.11) (0.13)
- ----------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 15.37 $ 14.00
Total return (f) 10.59%(g)(h) 10.12%(g)(h)
- ----------------------------------------------------------------------------
RATIOS TO AVERAGE NET
ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 2.14%(j) 2.19%(j)
Net investment income (i) 0.65%(j) 1.02%(j)
Waiver/reimbursement 0.01%(j) 0.01%(j)
Portfolio turnover rate 44%(h) 122%(h)
Net assets, end of period (000's) $ 51,547 $ 56,383
- ----------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------------------------
CLASS G SHARES 2002 2001 2000 1999 1998
- ------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.92 $ 18.74 $ 17.70 $ 16.92 $ 16.43
- ------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.14(e) 0.22(d) 0.24(d) 0.25 0.29
Net realized and unrealized gain
(loss) on investments (2.08)(e) (3.06) 1.36 1.21 1.71
-------- --------- --------- ---------- ----------
Total from investment operations (1.94) (2.84) 1.60 1.46 2.00
- ------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED
TO SHAREHOLDERS:
From net investment income (0.14) (0.24) (0.25) (0.25) (0.30)
From net realized gains -- (0.74) (0.31) (0.43) (1.21)
-------- --------- --------- ---------- ----------
Total distributions
declared to shareholders (0.14) (0.98) (0.56) (0.68) (1.51)
- ------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.84 $ 14.92 $ 18.74 $ 17.70 $ 16.92
Total return (f) (13.08)%(g) (15.72)%(g) 9.20% 8.76% 13.14%
- ------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET
ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 2.09% 2.01% 1.99% 2.00% 1.99%
Net investment income (i) 1.04%(e) 1.33% 1.31% 1.43% 1.77%
Waiver/reimbursement 0.03% 0.01% -- -- --
Portfolio turnover rate 40% 65% 59% 135% 108%
Net assets, end of period (000's) $ 73,183 $ 106,074 $ 105,980 $ 91,199 $ 57,876
- ------------------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Asset Allocation Fund was renamed the
Columbia Asset Allocation Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Asset Allocation Fund, Retail B shares
were redesignated Liberty Asset Allocation Fund, Class G shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) The Trust adopted the provisions of the AICPA Audit Guide for Investment
Companies effective November 1, 2001. The effect of the changes for the
year ended October 31, 2002 on the net investment income per share, net
realized and unrealized gain per share and the net ratio of net investment
income to average net assets is $(0.01), $0.01 and (0.05)%, respectively.
(f) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(g) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(h) Not annualized.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
89
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Asset Allocation Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, SEPTEMBER 30,
CLASS T SHARES 2004 (a) 2003 (b)(c)
- ----------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.01 $ 12.87
- ----------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.10(d) 0.21(d)
Net realized and unrealized gain
(loss) on investments 1.43 1.16
----------- -------------
Total from investment operations 1.53 1.37
- ----------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED
TO SHAREHOLDERS:
From net investment income (0.16) (0.23)
From net realized gains -- --
----------- -------------
Total distributions
declared to shareholders (0.16) (0.23)
- ----------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 15.38 $ 14.01
Total return (f) 11.00%(g)(h) 10.75%(g)(h)
- ----------------------------------------------------------------------------
RATIOS TO AVERAGE NET
ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.47%(j) 1.49%(j)
Net investment income (i) 1.33%(j) 1.73%(j)
Waiver/reimbursement 0.01%(j) 0.01%(j)
Portfolio turnover rate 44%(h) 122%(h)
Net assets, end of period (000's) $ 197,475 $ 189,580
- ----------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------------------------
CLASS T SHARES 2002 2001 2000 1999 1998
- ------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.95 $ 18.79 $ 17.74 $ 16.95 $ 16.46
- ------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.25(e) 0.33(d) 0.37(d) 0.37 0.38
Net realized and unrealized gain
(loss) on investments (2.09)(e) (3.08) 1.36 1.21 1.72
-------- --------- --------- ---------- ----------
Total from investment operations (1.84) (2.75) 1.73 1.58 2.10
- ------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED
TO SHAREHOLDERS
From net investment income (0.24) (0.35) (0.37) (0.36) (0.40)
From net realized gains -- (0.74) (0.31) (0.43) (1.21)
-------- --------- --------- ---------- ----------
Total distributions
declared to shareholders (0.24) (1.09) (0.68) (0.79) (1.61)
- ------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.87 $ 14.95 $ 18.79 $ 17.74 $ 16.95
Total return (f) (12.45)%(g) (15.18)%(g) 9.98% 9.53% 13.85%
- ------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET
ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.37% 1.33% 1.29% 1.32% 1.33%
Net investment income (i) 1.76%(e) 2.01% 2.01% 2.11% 2.43%
Waiver/reimbursement 0.01% 0.01% -- -- --
Portfolio turnover rate 40% 65% 59% 135% 108%
Net assets, end of period (000's) $198,154 $ 289,882 $ 371,590 $ 389,077 $ 323,498
- ------------------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Asset Allocation Fund was renamed the
Columbia Asset Allocation Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Asset Allocation Fund, Retail A shares
were redesignated Liberty Asset Allocation Fund, Class T shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) The Trust adopted the provisions of the AICPA Audit Guide for Investment
Companies effective November 1, 2001. The effect of the changes for the
year ended October 31, 2002 on the net investment income per share, net
realized and unrealized gain per share and the net ratio of net investment
income to average net assets is $(0.01), $0.01 and (0.05)%, respectively.
(f) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(g) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(h) Not annualized.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
90
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Asset Allocation Fund
Selected data for a share outstanding throughout each period is as follows:
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, SEPTEMBER 30,
CLASS Z SHARES 2004 (a) 2003 (b)(c)
- ----------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.01 $ 12.87
- ----------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.12(d) 0.25(d)
Net realized and unrealized gain
(loss) on investments 1.43 1.16
----------- -------------
Total from investment operations 1.55 1.41
- ----------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED
TO SHAREHOLDERS:
From net investment income (0.19) (0.27)
From net realized gains -- --
----------- -------------
Total distributions
declared to shareholders (0.19) (0.27)
- ----------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 15.37 $ 14.01
Total return (f) 11.12%(g)(h) 11.07%(g)(h)
- ----------------------------------------------------------------------------
RATIOS TO AVERAGE NET
ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.17%(j) 1.16%(j)
Net investment income (i) 1.63%(j) 2.04%(j)
Waiver/reimbursement 0.01%(j) 0.01%(j)
Portfolio turnover rate 44%(h) 122%(h)
Net assets, end of period (000's) $ 216,660 $ 217,935
- ----------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------------------------
CLASS Z SHARES 2002 2001 2000 1999 1998
- ------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.94 $ 18.78 $ 17.73 $ 16.96 $ 16.47
- ------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.29(e) 0.37(d) 0.41(d) 0.40 0.42
Net realized and unrealized gain
(loss) on investments (2.09)(e) (3.08) 1.36 1.20 1.71
-------- --------- --------- ---------- ----------
Total from investment operations (1.80) (2.71) 1.77 1.60 2.13
- ------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED
TO SHAREHOLDERS:
From net investment income (0.27) (0.39) (0.41) (0.40) (0.43)
From net realized gains -- (0.74) (0.31) (0.43) (1.21)
-------- --------- --------- ---------- ----------
Total distributions
declared to shareholders (0.27) (1.13) (0.72) (0.83) (1.64)
- ------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.87 $ 14.94 $ 18.78 $ 17.73 $ 16.96
Total return (f) (12.23)%(g) (14.94)% 10.21% 9.63% 14.05%
- ------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET
ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.12% 1.11% 1.09% 1.12% 1.13%
Net investment income (i) 2.01%(e) 2.23% 2.21% 2.31% 2.63%
Waiver/reimbursement 0.03% -- -- -- --
Portfolio turnover rate 40% 65% 59% 135% 108%
Net assets, end of period (000's) $163,934 $ 230,562 $ 290,970 $ 269,851 $ 218,666
- ------------------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Asset Allocation Fund was renamed the
Columbia Asset Allocation Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Asset Allocation Fund, Trust shares were
redesignated Liberty Asset Allocation Fund, Class Z shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) The Trust adopted the provisions of the AICPA Audit Guide for Investment
Companies effective November 1, 2001. The effect of the changes for the
year ended October 31, 2002 on the net investment income per share, net
realized and unrealized gain per share and the net ratio of net investment
income to average net assets is $(0.01), $0.01 and (0.05)%, respectively.
(f) Total return at net asset value assuming all distributions reinvested.
(g) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(h) Not annualized.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
91
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Large Cap Growth Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, SEPTEMBER 30,
CLASS A SHARES 2004 (a) 2003 (b)(c)
- ----------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 17.59 $ 16.06
- ----------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.04)(e) (0.05)(e)
Net realized and unrealized gain
(loss) on investments 1.89 1.61
----------- -------------
Total from investment operations 1.85 1.56
- ----------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income -- (0.03)
From net realized gains -- --
----------- -------------
Total distributions declared to shareholders -- (0.03)
----------- -------------
NET ASSET VALUE, END OF PERIOD $ 19.44 $ 17.59
Total return (f)(g) 10.52%(h) 9.72%(h)
- ----------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.27%(j) 1.30%(j)
Net investment income (loss)(i) (0.41)%(j) (0.30)%(j)
Waiver/reimbursement --%(j)(k) 0.02%(j)
Portfolio turnover rate 76%(h) 91%(h)
Net assets, end of period (000's) $ 3,644 $ 1,887
- ----------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------
CLASS A SHARES 2002 2001 2000 1999(d)
- ----------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 19.74 $ 32.31 $ 28.95 $ 24.49
- ----------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.03(e) (0.02) (0.05)(e) (0.01)
Net realized and unrealized gain
(loss) on investments (3.71) (8.92) 5.13 6.37
------- -------- ------- --------
Total from investment operations (3.68) (8.94) 5.08 6.36
- ----------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income -- -- -- --
From net realized gains -- (3.63) (1.72) (1.90)
------- -------- ------- --------
Total distributions declared to shareholders -- (3.63) (1.72) (1.90)
- ----------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 16.06 $ 19.74 $ 32.31 $ 28.95
Total return (f)(g) (18.64)% (30.43)% 18.36% 27.30%
- ----------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.12% 1.13% 1.12% 1.14%
Net investment income (loss)(i) 0.14% (0.10)% (0.17)% (0.05)%
Waiver/reimbursement 0.05% 0.03% 0.11% 0.14%
Portfolio turnover rate 43% 48% 54% 53%
Net assets, end of period (000's) $ 56 $ 671 $ 142 $ 107
- ----------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Equity Growth Fund was renamed the
Columbia Large Cap Growth Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Equity Growth Fund, Prime A shares were
redesignated Liberty Equity Growth Fund, Class A shares.
(d) The Fund began issuing Prime A shares on November 1, 1998.
(e) Per share data was calculated using average shares outstanding during the
period.
(f) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(g) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(h) Not annualized.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
(k) Rounds to less than 0.01%.
92
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Large Cap Growth Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, SEPTEMBER 30,
CLASS B SHARES 2004 (a) 2003 (b)(c)
- ------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 16.96 $ 15.57
- ------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.11)(e) (0.14)(e)
Net realized and unrealized gain
(loss) on investments 1.82 1.53
---------- -------------
Total from investment operations 1.71 1.39
- ------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net realized gains -- --
- ------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 18.67 $ 16.96
Total return (f)(g) 10.08%(h) 8.93%(h)
- ------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 2.03%(j) 2.13%(j)
Net investment loss (i) (1.17)%(j) (0.97)%(j)
Waiver/reimbursement --%(j)(k) 0.02%(j)
Portfolio turnover rate 76%(h) 91%(h)
Net assets, end of period (000's) $ 2,539 $ 1,013
- ------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------
CLASS B SHARES 2002 2001 2000 1999(d)
- ----------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 19.32 $ 31.94 $ 28.84 $ 24.49
- ----------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.14)(e) (0.19) (0.29)(e) (0.10)
Net realized and unrealized gain
(loss) on investments (3.61) (8.80) 5.11 6.35
------- -------- ------- --------
Total from investment operations (3.75) (8.99) 4.82 6.25
- ----------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net realized gains -- (3.63) (1.72) (1.90)
- ----------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 15.57 $ 19.32 $ 31.94 $ 28.84
Total return (f)(g) (19.41)% (31.00)% 17.48% 26.79%
- ----------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.99% 1.95% 1.87% 1.87%
Net investment loss (i) (0.73)% (0.92)% (0.92)% (0.78)%
Waiver/reimbursement 0.05% 0.03% 0.15% 0.32%
Portfolio turnover rate 43% 48% 54% 53%
Net assets, end of period (000's) $ 207 $ 309 $ 450 $ 246
- ----------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Equity Growth Fund was renamed the
Columbia Large Cap Growth Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Equity Growth Fund, Prime B shares were
redesignated Liberty Equity Growth Fund, Class B shares.
(d) The Fund began issuing Prime B shares on November 1, 1998.
(e) Per share data was calculated using average shares outstanding during the
period.
(f) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(g) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(h) Not annualized.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
(k) Rounds to less than 0.01%.
93
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Large Cap Growth Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
MARCH 31, SEPTEMBER 30,
CLASS C SHARES 2004 (a) 2003 (b)(c)
- ------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 16.98 $ 16.04
- ------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (d) (0.11) (0.13)
Net realized and unrealized gain on investments 1.82 1.07
----------- -------------
Total from investment operations 1.71 0.94
- ------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 18.69 $ 16.98
Total return (e)(f)(g) 10.07% 5.86%
- ------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (h)(i) 2.03% 2.00%
Net investment loss (h)(i) (1.17)% (0.92)%
Waiver/reimbursement (i) --%(j) 0.02%
Portfolio turnover rate (g) 76% 91%
Net assets, end of period (000's) $ 604 $ 524
- ------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Equity Growth Fund was renamed the
Columbia Large Cap Growth Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) Class C shares were initially offered on November 18, 2002. Per share data
and total return reflect activity from that date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Total return at net asset value assuming no contingent deferred sales
charge.
(f) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(g) Not annualized.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
(j) Rounds to less than 0.01%.
94
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Large Cap Growth Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, SEPTEMBER 30,
CLASS G SHARES 2004 (a) 2003 (b)(c)
- ----------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 16.43 $ 15.11
- ----------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.10)(d) (0.15)(d)
Net realized and unrealized gain
(loss) on investments 1.75 1.47
---------- -------------
Total from investment operations 1.65 1.32
- ----------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
In excess of net investment income -- --
From net realized gains -- --
---------- -------------
Total distributions
declared to shareholders -- --
- ----------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 18.08 $ 16.43
Total return (f) 10.04%(g)(h) 8.66%(g)(h)
- ----------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 2.04%(j) 2.31%(j)
Net investment loss (i) (1.18)%(j) (1.02)%(j)
Waiver/reimbursement --%(j)(k) 0.02%(j)
Portfolio turnover rate 76%(g) 91%(g)
Net assets, end of period (000's) $ 54,428 $ 54,850
- ----------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
---------------------------------------------------------------------------
CLASS G SHARES 2002 2001 2000 1999 1998
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 18.79 $ 31.22 $ 28.27 $ 24.07 $ 24.91
- ---------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.17)(d) (0.21) (0.35)(d) (0.20) (0.16)(d)
Net realized and unrealized gain
(loss) on investments (3.51) (8.59) 5.02 6.30 3.16
-------- --------- --------- ---------- ----------
Total from investment operations (3.68) (8.80) 4.67 6.10 3.00
- ---------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
In excess of net investment income -- -- -- -- --(e)
From net realized gains -- (3.63) (1.72) (1.90) (3.84)
-------- --------- --------- ---------- ----------
Total distributions
declared to shareholders -- (3.63) (1.72) (1.90) (3.84)
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 15.11 $ 18.79 $ 31.22 $ 28.27 $ 24.07
Total return (f) (19.49)%(h) (31.16)%(h) 17.29%(h) 26.63%(h) 13.98%
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 2.18% 2.11% 2.07% 2.05% 2.04%
Net investment loss (i) (0.92)% (1.08)% (1.11)% (0.96)% (0.68)%
Waiver/reimbursement 0.07% 0.02% 0.02% 0.03% --
Portfolio turnover rate 43% 48% 54% 53% 60%
Net assets, end of period (000's) $ 64,156 $ 92,292 $ 130,347 $ 71,525 $ 34,693
- ---------------------------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Equity Growth Fund was renamed the
Columbia Large Cap Growth Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Equity Growth Fund, Retail B shares were
redesignated Liberty Equity Growth Fund, Class G shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Rounds to less than $0.01 per share.
(f) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(g) Not annualized.
(h) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
(k) Rounds to less than 0.01%.
95
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Large Cap Growth Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, SEPTEMBER 30,
CLASS T SHARES 2004 (a) 2003 (b)(c)
- ----------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 17.50 $ 15.98
- ----------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.05)(d) (0.02)(d)
Net realized and unrealized gain
(loss) on investments 1.89 1.54
----------- -------------
Total from investment operations 1.84 1.52
- ----------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income -- --
In excess of net investment income -- --
From net realized gains -- --
----------- -------------
Total distributions
declared to shareholders -- --
- ----------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 19.34 $ 17.50
Total return (f) 10.51%(g)(h) 9.51%(g)(h)
- ----------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.35%(j) 1.45%(j)
Net investment income (loss)(i) (0.49)%(j) (0.16)%(j)
Waiver/reimbursement --%(j)(k) 0.02%(j)
Portfolio turnover rate 76%(g) 91%(g)
Net assets, end of period (000's) $ 244,262 $ 235,849
- ----------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
----------------------------------------------------------------------
CLASS T SHARES 2002 2001 2000 1999 1998
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 19.70 $ 32.31 $ 28.99 $ 24.47 $ 25.14
- ---------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.02)(d) (0.07) (0.10)(d) (0.06) 0.01
Net realized and unrealized gain
(loss) on investments (3.70) (8.91) 5.14 6.48 3.19
-------- --------- --------- ---------- ----------
Total from investment operations (3.72) (8.98) 5.04 6.42 3.20
- ---------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income -- -- -- -- (0.03)
In excess of net investment income -- -- -- -- --(e)
From net realized gains -- (3.63) (1.72) (1.90) (3.84)
-------- --------- --------- ---------- ----------
Total distributions
declared to shareholders -- (3.63) (1.72) (1.90) (3.87)
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 15.98 $ 19.70 $ 32.31 $ 28.99 $ 24.47
Total return (f) (18.88)%(h) (30.57)%(h) 18.18% 27.55% 14.73%
- ---------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENT DATA:
Expenses (i) 1.34% 1.31% 1.28% 1.34% 1.34%
Net investment income (loss)(i) (0.08)% (0.28)% (0.33)% (0.25)% 0.02%
Waiver/reimbursement 0.07% 0.02% -- -- --
Portfolio turnover rate 43% 48% 54% 53% 60%
Net assets, end of period (000's) $239,279 $ 346,214 $ 580,417 $ 443,639 $ 312,951
- ---------------------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Equity Growth Fund was renamed the
Columbia Large Cap Growth Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Equity Growth Fund, Retail A shares were
redesignated Liberty Equity Growth Fund, Class T shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Rounds to less than $0.01 per share.
(f) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(g) Not annualized.
(h) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
(k) Rounds to less than 0.01%.
96
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Large Cap Growth Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, SEPTEMBER 30,
CLASS Z SHARES 2004 (a) 2003 (b)(c)
- ------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 17.84 $ 16.28
- ------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.02)(d) 0.05(d)
Net realized and unrealized gain
(loss) on investments 1.93 1.57
----------- -------------
Total from investment operations 1.91 1.62
- ------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.01) (0.06)
In excess of net investment income -- --
From net realized gains -- --
----------- -------------
Total distributions
declared to shareholders (0.01) (0.06)
- ------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 19.74 $ 17.84
Total return (e) 10.71%(f)(g) 9.93%(f)(g)
- ------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (h) 1.03%(i) 0.99%(i)
Net investment income (loss)(h) (0.17)%(i) 0.30%(i)
Waiver/reimbursement --%(i)(j) 0.02%(i)
Portfolio turnover rate 76%(f) 91%(f)
Net assets, end of period (000's) $ 695,361 $ 670,649
- ------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
----------------------------------------------------------------------
CLASS Z SHARES 2002 2001 2000 1999 1998
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 19.99 $ 32.61 $ 29.15 $ 24.52 $ 25.17
- ---------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.07(d) 0.02 0.01(d) 0.03 0.09
Net realized and unrealized gain
(loss) on investments (3.78) (9.01) 5.18 6.50 3.20
-------- --------- ---------- ---------- ----------
Total from investment operations (3.71) (8.99) 5.19 6.53 3.29
- ---------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHODERS:
From net investment income -- -- (0.01) -- (0.09)
In excess of net investment income -- -- -- -- (0.01)
From net realized gains -- (3.63) (1.72) (1.90) (3.84)
-------- --------- ---------- ---------- ----------
Total distributions
declared to shareholders -- (3.63) (1.73) (1.90) (3.94)
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 16.28 $ 19.99 $ 32.61 $ 29.15 $ 24.52
Total return (e) (18.51)%(g) (30.29)%(g) 18.63% 28.07% 15.17%
- ---------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (h) 0.91% 0.93% 0.91% 0.94% 0.96%
Net investment income (loss)(h) 0.35% 0.10% 0.04% 0.15% 0.40%
Waiver/reimbursement 0.05% 0.01% -- -- --
Portfolio turnover rate 43% 48% 54% 53% 60%
Net assets, end of period (000's) $699,215 $ 845,887 $1,258,399 $1,041,378 $ 815,756
- ---------------------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Equity Growth Fund was renamed the
Columbia Large Cap Growth Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Equity Growth Fund, Trust shares were
redesignated Liberty Equity Growth Fund, Class Z shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Total return at net asset value assuming all distributions reinvested.
(f) Not annualized.
(g) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
(j) Rounds to less than 0.01%.
97
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Disciplined Value Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
MARCH 31, SEPTEMBER 30,
CLASS A SHARES 2004 (a) 2003 (b)(c)
- ------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.02 $ 10.06
- ------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (d) 0.07 0.04
Net realized and unrealized gain on investments 1.64 0.92
----------- -------------
Total from investment operations 1.71 0.96
- ------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.14) --
- ------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.59 $ 11.02
Total return (e)(f) 15.62% 9.54%
- ------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (g)(h) 1.31% 1.31%
Net investment income (g)(h) 1.20% 0.49%
Portfolio turnover rate (f) 46% 50%
Net assets, end of period (000's) $ 1,820 $ 903
- ------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Equity Value Fund was renamed the Columbia
Disciplined Value Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) Class A shares were initially offered on November 25, 2002. Per share data
and total return reflect activity from that date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Total return at net asset value assuming all distributions reinvested 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.
98
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Disciplined Value Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
MARCH 31, SEPTEMBER 30,
CLASS B SHARES 2004 (a) 2003 (b)(c)
- ------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.49 $ 9.67
- ------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)(d) 0.03 (0.02)
Net realized and unrealized gain on investments 1.55 0.84
----------- -------------
Total from investment operations 1.58 0.82
- ------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.03) --
- ------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.04 $ 10.49
Total return (e)(f) 15.11% 8.48%
- ------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (g)(h) 2.06% 2.26%
Net investment income (loss)(g)(h) 0.46% (0.27)%
Portfolio turnover rate (f) 46% 50%
Net assets, end of period (000's) $ 1,504 $ 338
- ------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Equity Value Fund was renamed the
Columbia Disciplined Value Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) Class B shares were initially offered on November 25, 2002. Per share data
and total return reflect activity from that date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Total return at net asset value assuming all distributions reinvested 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.
99
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Disciplined Value Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
MARCH 31, SEPTEMBER 30,
CLASS C SHARES 2004 (a) 2003 (b)(c)
- ----------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.47 $ 9.67
- ----------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)(d) 0.02 (0.05)
Net realized and unrealized gain on investments 1.56 0.85
----------- -------------
Total from investment operations 1.58 0.80
- ----------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.03) --
- ----------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.02 $ 10.47
Total return (e)(f) 15.14% 8.27%(g)
- ----------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (h)(i) 2.07% 2.49%
Net investment income (loss)(h)(i) 0.40% (0.60)%
Waiver/reimbursement -- 0.49%(i)
Portfolio turnover rate (f) 46% 50%
Net assets, end of period (000's) $ 255 $ 24
- ----------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Equity Value Fund was renamed the Columbia
Disciplined Value Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) Class C shares were initially offered on November 25, 2002. Per share data
and total return reflect activity from that date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(f) Not annualized.
(g) Had the Investment Advisor or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
100
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Disciplined Value Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, SEPTEMBER 30,
CLASS G SHARES 2004 (a) 2003 (b)(c)
- ------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.50 $ 9.21
- ------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.03(d) (0.04)(d)
Net realized and unrealized gain
(loss) on investments 1.56 1.33
----------- ------------
Total from investment operations 1.59 1.29
- ------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.04) --
From net realized gains -- --
----------- ------------
Total distributions
declared to shareholders (0.04) --
- ------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.05 $ 10.50
Total return (e) 15.11%(f) 14.01%(f)
- ------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (h) 2.09%(i) 2.31%(i)
Net investment income (loss)(h) 0.46%(i) (0.47)%(i)
Waiver/reimbursement -- --
Portfolio turnover rate 46%(f) 50%(f)
Net assets, end of period (000's) $ 9,686 $ 11,074
- ------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
----------------------------------------------------------------------
CLASS G SHARES 2002 2001 2000 1999 1998
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.10 $ 16.73 $ 18.08 $ 16.44 $ 18.24
- ---------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.19) (0.10) (0.15) (0.15) (0.08)
Net realized and unrealized gain
(loss) on investments (2.35) (1.64) 1.25 2.40 1.48
-------- --------- ---------- ---------- ----------
Total from investment operations (2.54) (1.74) 1.10 2.25 1.40
- ---------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income -- -- -- -- --
From net realized gains (0.35) (2.89) (2.45) (0.61) (3.20)
-------- --------- ---------- ---------- ----------
Total distributions
declared to shareholders (0.35) (2.89) (2.45) (0.61) (3.20)
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 9.21 $ 12.10 $ 16.73 $ 18.08 $ 16.44
Total return (e) (21.85)% (11.00)%(g) 7.12%(g) 13.81% 9.07%
- ---------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (h) 2.18% 2.13% 2.09% 2.08% 2.06%
Net investment income (loss)(h) (1.15)% (0.91)% (0.83)% (0.87)% (0.54)%
Waiver/reimbursement -- 0.02% 0.03% -- --
Portfolio turnover rate 99% 127% 72% 75% 82%
Net assets, end of period (000's) $ 16,791 $ 25,776 $ 30,555 $ 30,988 $ 23,103
- ---------------------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Equity Value Fund was renamed the Columbia
Disciplined Value Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 25, 2002, the Galaxy Equity Value Fund, Retail B shares were
redesignated Liberty Equity Value, Class G shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(f) Not annualized.
(g) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
101
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Disciplined Value Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, SEPTEMBER 30,
CLASS T SHARES 2004 (a) 2003 (b)(c)
- ------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.00 $ 9.58
- ------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.07(d) 0.03(d)
Net realized and unrealized gain
(loss) on investments 1.64 1.39
----------- ------------
Total from investment operations 1.71 1.42
- ------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.12) --
In excess of net investment income -- --
From net realized gains -- --
----------- ------------
Total distributions
declared to shareholders (0.12) --
- ------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.59 $ 11.00
Total return (f) 15.57%(g) 14.82%(g)
- ------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.38%(j) 1.50%(j)
Net investment income (loss)(i) 1.15%(j) 0.35%(j)
Waiver/reimbursement -- --
Portfolio turnover rate 46%(g) 50%(g)
Net assets, end of period (000's) $ 139,988 $ 127,993
- ------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
----------------------------------------------------------------------
CLASS T SHARES 2002 2001 2000 1999 1998
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.48 $ 17.05 $ 18.28 $ 16.50 $ 18.21
- ---------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.05) (0.02) (0.02) (0.03) 0.03
Net realized and unrealized gain
(loss) on investments (2.50) (1.66) 1.25 2.42 1.50
-------- --------- ---------- ---------- ----------
Total from investment operations (2.55) (1.68) 1.23 2.39 1.53
- ---------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income -- -- (0.01) -- (0.04)
In excess of net investment income -- -- --(e) -- --
From net realized gains (0.35) (2.89) (2.45) (0.61) (3.20)
-------- --------- ---------- ---------- ----------
Total distributions
declared to shareholders (0.35) (2.89) (2.46) (0.61) (3.24)
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 9.58 $ 12.48 $ 17.05 $ 18.28 $ 16.50
Total return (f) (21.31)% (10.27)%(h) 7.83% 14.63% 9.88%
- ---------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL
DATA:
Expenses (i) 1.41% 1.39% 1.36% 1.37% 1.37%
Net investment income (loss)(i) (0.38)% (0.17)% (0.10)% (0.16)% 0.15%
Waiver/reimbursement -- 0.01% -- -- --
Portfolio turnover rate 99% 127% 72% 75% 82%
Net assets, end of period (000's) $123,085 $ 180,435 $ 226,836 $ 258,332 $ 234,730
- ---------------------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Equity Value Fund was renamed the Columbia
Disciplined Value Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 25, 2002, the Galaxy Equity Value Fund, Retail A shares were
redesignated Liberty Equity Value, Class T shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Rounds to less than $0.01 per share.
(f) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(g) Not annualized.
(h) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
102
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Disciplined Value Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, SEPTEMBER 30,
CLASS Z SHARES 2004 (a) 2003 (b)(c)
- ------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.24 $ 9.75
- ------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.09(d) 0.08(d)
Net realized and unrealized gain
(loss) on investments 1.67 1.41
----------- ------------
Total from investment operations 1.76 1.49
- ------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.18) --
In excess of net investment income -- --
From net realized gains -- --
----------- ------------
Total distributions
declared to shareholders (0.18) --
- ------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.82 $ 11.24
Total return (f) 15.75%(g) 15.28%(g)
- ------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.06%(j) 1.04%(j)
Net investment income (i) 1.48%(j) 0.82%(j)
Waiver/reimbursement -- --
Portfolio turnover rate 46%(g) 50%(g)
Net assets, end of period (000's) $ 274,324 $ 224,137
- ------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
----------------------------------------------------------------------
CLASS Z SHARES 2002 2001 2000 1999 1998
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.65 $ 17.17 $ 18.35 $ 16.51 $ 18.21
- ---------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.02) 0.02 0.04 0.03 0.08
Net realized and unrealized gain
(loss) on investments (2.53) (1.65) 1.25 2.42 1.49
-------- --------- ---------- ---------- ----------
Total from investment operations (2.55) (1.63) 1.29 2.45 1.57
- ---------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income -- -- (0.02) -- (0.07)
In excess of net investment income -- -- --(e) -- --
From net realized gains (0.35) (2.89) (2.45) (0.61) (3.20)
-------- --------- ---------- ---------- ----------
Total distributions
declared to shareholders (0.35) (2.89) (2.47) (0.61) (3.27)
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 9.75 $ 12.65 $ 17.17 $ 18.35 $ 16.51
Total return (f) (20.96)% (9.91)% 8.22% 15.04%(h) 10.27%
- ---------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL
DATA:
Expenses (i) 0.98% 1.00% 1.00% 1.02% 1.03%
Net investment income (i) 0.05% 0.22% 0.26% 0.19% 0.49%
Waiver/reimbursement -- -- -- 0.01% --
Portfolio turnover rate 99% 127% 72% 75% 82%
Net assets, end of period (000's) $167,867 $ 152,002 $ 164,864 $ 281,064 $ 254,432
- ---------------------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Equity Value Fund was renamed the Columbia
Disciplined Value Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 25, 2002, the Galaxy Equity Value Fund, Trust shares were
redesignated Liberty Equity Value, Class Z shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(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 and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
103
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia International Equity Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, SEPTEMBER 30,
CLASS A SHARES 2004 (a) 2003 (b)(c)
- ---------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.83 $ 9.28
- ---------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.03(e) 0.06(e)
Net realized and unrealized gain
(loss) on investments 2.08 1.53
----------- -------------
Total from investment operations 2.11 1.59
- ---------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.05) (0.04)
From net realized gains -- --
----------- -------------
Total distributions
declared to shareholders (0.05) (0.04)
- ---------------------------------------------------------------------------------
REDEMPTION FEES:
Redemption fees added to paid-in capital --(e)(f) --
- ---------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.89 $ 10.83
Total return (g)(h) 19.51%(i) 17.23%(i)
- ---------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 1.25%(k) 1.38%(k)
Net investment income (loss)(j) 0.47%(k) 0.69%(k)
Waiver/reimbursement 0.26%(k) 0.25%(k)
Portfolio turnover rate 46%(i) 66%(i)
Net assets, end of period (000's) $ 743 $ 268
- ---------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------
CLASS A SHARES 2002 2001 2000 1999 (d)
- ------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.19 $ 19.53 $ 20.98 $ 16.85
- ------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.01)(e) (0.02) 0.46(e) 0.06(e)
Net realized and unrealized gain
(loss) on investments (1.72) (5.73) (0.60) 4.79
-------- --------- ---------- ----------
Total from investment operations (1.73) (5.75) (0.14) 4.85
- ------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.18) (0.31) (0.12) (0.15)
From net realized gains -- (2.28) (1.19) (0.57)
-------- --------- ---------- ----------
Total distributions
declared to shareholders (0.18) (2.59) (1.31) (0.72)
- ------------------------------------------------------------------------------------------------------
REDEMPTION FEES:
Redemption fees added to paid-in capital -- -- -- --
- ------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 9.28 $ 11.19 $ 19.53 $ 20.98
Total return (g)(h) (15.78)% (33.38)% (1.34)% 29.73%
- ------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 1.63% 1.44% 1.10% 1.17%
Net investment income (loss)(j) (0.11)% 0.01% 2.06% 0.34%
Waiver/reimbursement 0.56% 0.33% 0.89% 0.86%
Portfolio turnover rate 110% 60% 50% 45%
Net assets, end of period (000's) $ 8 $ 9 $ 14 $ 12
- ------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty International Equity Fund was renamed the
Columbia International Equity Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy International Equity Fund, Prime A shares
were redesignated Liberty International Equity Fund, Class A shares.
(d) The Fund began offering Prime A shares on November 1, 1998.
(e) Per share data was calculated using average shares outstanding during the
period.
(f) Rounds to less than $0.01 per share.
(g) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(h) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(i) Not annualized.
(j) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(k) Annualized.
104
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia International Equity Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, SEPTEMBER 30,
CLASS B SHARES 2004 (a) 2003 (b)(c)
- ---------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.75 $ 9.22
- ---------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.02)(e) (0.03)(e)
Net realized and unrealized gain
(loss) on investments 2.07 1.57
----------- -------------
Total from investment operations 2.05 1.54
- ---------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income -- (0.01)
From net realized gains -- --
----------- -------------
Total distributions declared to shareholders -- (0.01)
- ---------------------------------------------------------------------------------
REDEMPTION FEES:
Redemption fees added to paid-in capital --(e)(f) --
- ---------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.80 $ 10.75
Total return (g)(h) 19.07%(i) 16.71%(i)
- ---------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 1.94%(k) 2.37%(k)
Net investment income (loss)(j) (0.26)%(k) (0.37)%(k)
Waiver/reimbursement 0.26%(k) 0.25%(k)
Portfolio turnover rate 46%(i) 66%(i)
Net assets, end of period (000's) $ 739 $ 250
----------- -------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------
CLASS B SHARES 2002 2001 2000 1999 (d)
- ------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.11 $ 19.37 $ 20.85 $ 16.85
- ------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.05)(e) (0.08) 0.29(e) (0.08)(e)
Net realized and unrealized gain
(loss) on investments (1.71) (5.71) (0.58) 4.78
-------- --------- ---------- ----------
Total from investment operations (1.76) (5.79) (0.29) 4.70
- ------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.13) (0.19) -- (0.13)
From net realized gains -- (2.28) (1.19) (0.57)
-------- --------- ---------- ----------
Total distributions declared to shareholders (0.13) (2.47) (1.19) (0.70)
- ------------------------------------------------------------------------------------------------------
REDEMPTION FEES:
Redemption fees added to paid-in capital -- -- -- --
- ------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 9.22 $ 11.11 $ 19.37 $ 20.85
Total return (g)(h) (16.06)% (33.72)% (2.02)% 28.74%
- ------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 1.97% 1.91% 1.83% 1.89%
Net investment income (loss)(j) (0.45)% (0.46)% 1.33% (0.38)%
Waiver/reimbursement 0.25% 0.28% 0.34% 0.38%
Portfolio turnover rate 110% 60% 50% 45%
Net assets, end of period (000's) $ 54 $ 280 $ 483 $ 458
- ------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty International Equity Fund was renamed the
Columbia International Equity Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy International Equity Fund, Prime B shares
were redesignated Liberty International Equity Fund, Class B shares.
(d) The Fund began offering Prime B shares on November 1, 1998.
(e) Per share data was calculated using average shares outstanding during the
period.
(f) Rounds to less than $0.01 per share.
(g) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(h) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(i) Not annualized.
(j) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(k) Annualized.
105
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia International Equity Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
MARCH 31, SEPTEMBER 30,
----------- -------------
CLASS C SHARES 2004 (a) 2003 (b)(c)
- ---------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.71 $ 9.33
- ---------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)(d) (0.04) 0.04
Net realized and unrealized gain on investments 2.06 1.35
----------- -------------
Total from investment operations 2.02 1.39
- ---------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income -- (0.01)
- ---------------------------------------------------------------------------------
REDEMPTION FEES:
Redemption fees added to paid-in capital --(d)(e) --
- ---------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.73 $ 10.71
Total return (f)(g)(h) 18.86% 14.90%
- ---------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i)(j) 2.02% 2.07%
Net investment income (loss)(i)(j) (0.59)% 0.44%
Waiver/reimbursement (j) 0.26% 1.68%
Portfolio turnover rate (h) 46% 66%
Net assets, end of period (000's) $ 96 $ 6
- ---------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty International Equity Fund was renamed the
Columbia International Equity Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) Class C shares were initially offered on November 18, 2002. Per share data
and total return reflect activity from that date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Rounds to less than $0.01 per share.
(f) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(g) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(h) Not annualized.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
106
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia International Equity Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, SEPTEMBER 30,
CLASS G SHARES 2004 (a) 2003 (b)(c)
- ---------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.67 $ 9.16
- ---------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.03)(e) (0.03)(e)
Net realized and unrealized gain
(loss) on investments 2.06 1.54
----------- -------------
Total from investment operations 2.03 1.51
- ---------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income -- --
From net realized gains -- --
----------- -------------
Total distributions declared to shareholders -- --
- ---------------------------------------------------------------------------------
REDEMPTION FEES:
Redemption fees added to paid-in capital --(e)(f) --
- ---------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.70 $ 10.67
Total return (g)(h) 19.03%(i) 16.48%(i)
- ---------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 2.01%(k) 2.41%(k)
Net investment income (loss)(j) (0.54)%(k) (0.31)%(k)
Waiver/reimbursement 0.38%(k) 0.49%(k)
Portfolio turnover rate 46%(i) 66%(i)
Net assets, end of period (000's) $ 5,557 $ 4,976
- ---------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------
CLASS G SHARES 2002 2001 2000 1999 (d)
- ------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.04 $ 19.28 $ 20.80 $ 16.85
- ------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.10)(e) (0.10) 0.22(e) (0.09)(e)
Net realized and unrealized gain
(loss) on investments (1.70) (5.72) (0.55) 4.74
-------- --------- ---------- ----------
Total from investment operations (1.80) (5.82) (0.33) 4.65
- ------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.08) (0.14) -- (0.13)
From net realized gains -- (2.28) (1.19) (0.57)
-------- --------- ---------- ----------
Total distributions declared to shareholders (0.08) (2.42) (1.19) (0.70)
- ------------------------------------------------------------------------------------------------------
REDEMPTION FEES:
Redemption fees added to paid-in capital -- -- -- --
- ------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 9.16 $ 11.04 $ 19.28 $ 20.80
Total return (g)(h) (16.55)% (33.95)% (2.22)% 28.41%
- ------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 2.46% 2.34% 2.14% 1.96%
Net investment income (loss)(j) (0.94)% (0.89)% 1.02% (0.45)%
Waiver/reimbursement 0.51% 0.32% 0.50% 0.74%
Portfolio turnover rate 110% 60% 50% 45%
Net assets, end of period (000's) $ 4,913 $ 6,988 $ 8,297 $ 2,189
- ------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty International Equity Fund was renamed the
Columbia International Equity Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy International Equity Fund, Retail B shares
were redesignated Liberty International Equity Fund, Class G shares.
(d) The Fund began issuing Class G shares on November 1, 1998.
(e) Per share data was calculated using average shares outstanding during the
period.
(f) Rounds to less than $0.01 per share.
(g) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(h) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(i) Not annualized.
(j) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(k) Annualized.
107
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia International Equity Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, SEPTEMBER 30,
CLASS T SHARES 2004 (a) 2003 (b)(c)
- ---------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.78 $ 9.24
- ---------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.01(d) 0.05(d)
Net realized and unrealized gain
(loss) on investments 2.08 1.55
----------- -------------
Total from investment operations 2.09 1.60
- ---------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.01) (0.06)
From net realized gains -- --
----------- -------------
Total distributions
declared to shareholders (0.01) (0.06)
- ---------------------------------------------------------------------------------
REDEMPTION FEES:
Redemption fees added
to paid-in capital --(d)(e) --
- ---------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.86 $ 10.78
Total return (f)(g) 19.38%(h) 17.45%(h)
- ---------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.30%(j) 1.55%(j)
Net investment income (i) 0.17%(j) 0.54%(j)
Waiver/reimbursement 0.31%(j) 0.36%(j)
Portfolio turnover rate 46%(h) 66%(h)
Net assets, end of period (000's) $ 46,484 $ 42,195
- ---------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
----------------------------------------------------------------------
CLASS T SHARES 2002 2001 2000 1999 1998
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.16 $ 19.44 $ 20.86 $ 16.75 $ 15.18
- ---------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.01(d) 0.03 0.41(d) 0.01(d) 0.07
Net realized and unrealized gain
(loss) on investments (1.73) (5.75) (0.59) 4.72 1.93
-------- --------- ---------- ---------- ----------
Total from investment operations (1.72) (5.72) (0.18) 4.73 2.00
- ---------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.20) (0.28) (0.05) (0.05) (0.07)
From net realized gains -- (2.28) (1.19) (0.57) (0.36)
-------- --------- ---------- ---------- ----------
Total distributions
declared to shareholders (0.20) (2.56) (1.24) (0.62) (0.43)
- ---------------------------------------------------------------------------------------------------------------------
REDEMPTION FEES:
Redemption fees added
to paid-in capital -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 9.24 $ 11.16 $ 19.44 $ 20.86 $ 16.75
Total return (f)(g) (15.75)% (33.35)% (1.49)% 29.04% 13.64%
- ---------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.42% 1.34% 1.32% 1.48% 1.48%
Net investment income (i) 0.10% 0.11% 1.83% 0.03% 0.39%
Waiver/reimbursement 0.37% 0.30% 0.25% 0.25% 0.25%
Portfolio turnover rate 110% 60% 50% 45% 49%
Net assets, end of period (000's) $ 43,095 $ 65,749 $ 120,351 $ 89,327 $ 66,541
- ---------------------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty International Equity Fund was renamed the
Columbia International Equity Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy International Equity Fund, Retail A shares
were redesignated Liberty International Equity Fund, Class T shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Rounds to less than $0.01 per share.
(f) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(g) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(h) Not annualized.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
108
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia International Equity Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, SEPTEMBER 30,
CLASS Z SHARES 2004 (a) 2003 (b)(c)
- ---------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.01 $ 9.43
- ---------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.04(d) 0.10(d)
Net realized and unrealized gain
(loss) on investments 2.13 1.59
----------- -------------
Total from investment operations 2.17 1.69
- ---------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.09) (0.11)
From net realized gains -- --
----------- -------------
Total distributions
declared to shareholders (0.09) (0.11)
- ---------------------------------------------------------------------------------
REDEMPTION FEES:
Redemption fees added
to paid-in capital --(d)(e) --
- ---------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 13.09 $ 11.01
Total return (f)(g) 19.75%(h) 18.08%(h)
- ---------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 0.88%(j) 0.97%(j)
Net investment income (i) 0.62%(j) 1.11%(j)
Waiver/reimbursement 0.26%(j) 0.25%(j)
Portfolio turnover rate 46%(h) 66%(h)
Net assets, end of period (000's) $ 448,858 $ 346,889
- ---------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
----------------------------------------------------------------------
CLASS Z SHARES 2002 2001 2000 1999 1998
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.36 $ 19.74 $ 21.18 $ 17.00 $ 15.33
- ---------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.06(d) 0.07 0.51(d) 0.10(d) 0.14
Net realized and unrealized gain
(loss) on investments (1.74) (5.82) (0.60) 4.80 1.98
-------- --------- ---------- ---------- ----------
Total from investment operations (1.68) (5.75) (0.09) 4.90 2.12
- ---------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.25) (0.35) (0.16) (0.15) (0.09)
From net realized gains -- (2.28) (1.19) (0.57) (0.36)
-------- --------- ---------- ---------- ----------
Total distributions
declared to shareholders (0.25) (2.63) (1.35) (0.72) (0.45)
- ---------------------------------------------------------------------------------------------------------------------
REDEMPTION FEES:
Redemption fees added
to paid-in capital -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 9.43 $ 11.36 $ 19.74 $ 21.18 $ 17.00
Total return (f)(g) (15.26)% (33.00)% (1.08)% 29.71% 14.32%
- ---------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 0.94% 0.90% 0.87% 0.97% 0.96%
Net investment income (i) 0.58% 0.55% 2.28% 0.54% 0.91%
Waiver/reimbursement 0.27% 0.26% 0.25% 0.25% 0.25%
Portfolio turnover rate 110% 60% 50% 45% 49%
Net assets, end of period (000's) $374,119 $ 524,704 $ 912,555 $ 501,776 $ 345,692
- ---------------------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty International Equity Fund was renamed the
Columbia International Equity Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy International Equity Fund, Trust shares
were redesignated Liberty International Equity Fund, Class Z shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Rounds to less than $0.01 per share.
(f) Total return at net asset value assuming all distributions reinvested.
(g) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(h) Not annualized.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
109
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Large Cap Core Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, SEPTEMBER 30,
CLASS A SHARES 2004 (a) 2003 (b)(c)
- ---------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.22 $ 10.08
- ---------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.01)(e) 0.03(e)
Net realized and unrealized gain
(loss) on investments 1.23 1.16
----------- -------------
Total from investment operations 1.22 1.19
- ---------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.01) (0.05)
In excess of net investment income -- --
From net realized gains -- --
----------- -------------
Total distributions declared to shareholders (0.01) (0.05)
- ---------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.43 $ 11.22
Total return (g) 10.83%(h)(i) 11.82%(h)
- ---------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 1.38%(k) 1.48%(k)
Net investment income (loss)(j) (0.12)%(k) 0.37%(k)
Waiver/reimbursement --%(k)(l) --
Portfolio turnover rate 62%(h) 55%(h)
Net assets, end of period (000's) $ 10,044 $ 7,570
- ---------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------
CLASS A SHARES 2002 2001 2000 1999 (d)
- ------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.74 $ 16.41 $ 16.00 $ 14.88
- ------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.03(e) 0.02 0.04 0.11(e)
Net realized and unrealized gain
(loss) on investments (2.23) (2.38) 1.34 2.03
-------- --------- ---------- ----------
Total from investment operations (2.20) (2.36) 1.38 2.14
- ------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.02) (0.03) (0.06) (0.11)
In excess of net investment income -- --(f) -- --
From net realized gains (0.44) (1.28) (0.91) (0.91)
-------- --------- ---------- ----------
Total distributions declared to shareholders (0.46) (1.31) (0.97) (1.02)
- ------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 10.08 $ 12.74 $ 16.41 $ 16.00
Total return (g) (18.14)%(i) (15.34)%(i) 9.27%(i) 14.81%(i)
- ------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 1.28% 1.19% 1.14% 1.15%
Net investment income (loss)(j) 0.25% 0.22% 0.30% 0.66%
Waiver/reimbursement 0.24% 0.03% 0.10% 0.15%
Portfolio turnover rate 13% 19% 42% 20%
Net assets, end of period (000's) $ 15 $ 60 $ 156 $ 150
- ------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Large Cap Core Fund was renamed the
Columbia Large Cap Core Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On December 9, 2002, the Galaxy Growth & Income Fund, Prime A shares were
redesignated Liberty Large Cap Core Fund, Class A shares.
(d) The Fund began offering Prime A shares on November 1, 1998.
(e) Per share data was calculated using average shares outstanding during the
period.
(f) Rounds to less than $0.01 per share.
(g) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(h) Not annualized.
(i) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(j) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(k) Annualized.
(l) Rounds to less than 0.01%.
110
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Large Cap Core Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, SEPTEMBER 30,
CLASS B SHARES 2004 (a) 2003 (b)(c)
- -------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.99 $ 9.90
- -------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.05)(e) (0.04)(e)
Net realized and unrealized gain
(loss) on investments 1.20 1.14
---------- -------------
Total from investment operations 1.15 1.10
- -------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income -- (0.01)
From net realized gains -- --
---------- -------------
Total distributions declared to shareholders -- (0.01)
- -------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.14 $ 10.99
Total return (f) 10.46%(g)(h) 11.12%(g)
- -------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 2.10%(j) 2.19%(j)
Net investment loss (i) (0.85)%(j) (0.38)%(j)
Waiver/reimbursement --%(j)(k) --
Portfolio turnover rate 62%(g) 55%(g)
Net assets, end of period (000's) $ 3,633 $ 1,755
- -------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
---------------------------------------------------------------
CLASS B SHARES 2002 2001 2000 1999 (d)
- ------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.59 $ 16.32 $ 15.97 $ 14.88
- ------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.06)(e) (0.07) (0.07) (0.01)(e)
Net realized and unrealized gain
(loss) on investments (2.19) (2.38) 1.33 2.03
---------- ---------- ------------ -------------
Total from investment operations (2.25) (2.45) 1.26 2.02
- ------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income -- -- -- (0.02)
From net realized gains (0.44) (1.28) (0.91) (0.91)
---------- ---------- ------------ -------------
Total distributions declared to shareholders (0.44) (1.28) (0.91) (0.93)
- ------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 9.90 $ 12.59 $ 16.32 $ 15.97
Total return (f) (18.75)%(h) (15.95)%(h) 8.38%(h) 13.98%(h)
- ------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 2.02% 1.96% 1.89% 1.90%
Net investment loss (i) (0.49)% (0.55)% (0.45)% (0.09)%
Waiver/reimbursement 0.02% 0.04% 0.18% 0.27%
Portfolio turnover rate 13% 19% 42% 20%
Net assets, end of period (000's) $ 55 $ 109 $ 129 $ 129
- ------------------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Large Cap Core Fund was renamed the
Columbia Large Cap Core Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On December 9, 2002, the Galaxy Growth & Income Fund, Prime B shares were
redesignated Liberty Large Cap Core Fund, Class B shares.
(d) The Fund began offering Prime B shares on November 1, 1998.
(e) Per share data was calculated using average shares outstanding during the
period.
(f) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(g) Not annualized.
(h) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
(k) Rounds to less than 0.01%.
111
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Large Cap Core Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
MARCH 31, SEPTEMBER 30,
CLASS C SHARES 2004 (a) 2003 (b)(c)
- -------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.99 $ 10.21
- -------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (d) (0.05) (0.04)
Net realized and unrealized gain on investments 1.20 0.83
---------- -------------
Total from investment operations 1.15 0.79
- -------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income -- (0.01)
- -------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.14 $ 10.99
Total return (e)(f) 10.46%(g) 7.74%
- -------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (h)(i) 2.10% 2.18%
Net investment loss (h)(i) (0.80)% (0.42)%
Waiver/reimbursement --%(i)(j) --
Portfolio turnover rate (f) 62% 55%
Net assets, end of period (000's) $ 392 $ 223
- -------------------------------------------------------------------------------------
(a On October 13, 2003, the Liberty Large Cap Core Fund was renamed the
Columbia Large Cap Core Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) Class C shares were initially offered on December 9, 2002. Per share data
and total return reflect activity from that date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(f) Not annualized.
(g) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
(j) Rounds to less than 0.01%.
112
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Large Cap Core Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS
ENDED ENDED PERIOD
MARCH 31, SEPTEMBER 30,
CLASS G SHARES 2004 (a) 2003 (b)(c)
- --------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.89 $ 9.82
- --------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.05)(d) (0.02)(d)
Net realized and unrealized gain
(loss) on investments 1.19 1.10
---------- -------------
Total from investment operations 1.14 1.08
- --------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
In excess of net investment income -- (0.01)
From net realized gains -- --
---------- -------------
Total distributions
declared to shareholders -- (0.01)
- --------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.03 $ 10.89
Total return (f) 10.47%(g)(h) 11.00%(g)(h)
- --------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 2.14%(j) 2.19%(j)
Net investment income (loss)(i) (0.87)%(j) (0.28)%(j)
Waiver/reimbursement 0.03%(j) 0.05%(j)
Portfolio turnover rate 62%(g) 55%(g)
Net assets, end of period (000's) $ 24,545 $ 28,917
--------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
----------------------------------------------------------------------------
CLASS G SHARES 2002 2001 2000 1999 1998
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.50 $ 16.23 $ 15.90 $ 14.83 $ 16.23
- -------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.06)(d) (0.09) (0.10) (0.04)(d) --(e)
Net realized and unrealized gain
(loss) on investments (2.18) (2.36) 1.34 2.02 1.31
---------- --------- ------------ ---------- ----------
Total from investment operations (2.24) (2.45) 1.24 1.98 1.31
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
In excess of net investment income -- -- -- -- (0.03)
From net realized gains (0.44) (1.28) (0.91) (0.91) (2.68)
---------- --------- ------------ ---------- ----------
Total distributions
declared to shareholders (0.44) (1.28) (0.91) (0.91) (2.71)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 9.82 $ 12.50 $ 16.23 $ 15.90 $ 14.83
Total return (f) (18.80)%(h) (16.11)% 8.35% 13.72%(h) 9.09%
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 2.08% 2.05% 2.04% 2.03% 2.02%
Net investment income (loss)(i) (0.55)% (0.64)% (0.60)% (0.22)% 0.01%
Waiver/reimbursement 0.02% -- -- 0.01% --
Portfolio turnover rate 13% 19% 42% 20% 38%
Net assets, end of period (000's) $ 31,407 $ 48,512 $ 61,857 $ 62,366 $ 53,216
- -------------------------------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Large Cap Core Fund was renamed the
Columbia Large Cap Core Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On December 9, 2002, the Galaxy Growth & Income Fund, Retail B shares were
redesignated Liberty Large Cap Core Fund, Class G shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Rounds to less than $0.01 per share.
(f) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(g) Not annualized.
(h) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
113
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Large Cap Core Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, SEPTEMBER 30,
CLASS T SHARES 2004 (a) 2003 (b)(c)
- -------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.18 $ 10.05
- -------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.01)(d) 0.04(d)
Net realized and unrealized gain
(loss) on investments 1.22 1.14
----------- -------------
Total from investment operations 1.21 1.18
- -------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income --(e) (0.05)
In excess of net investment income -- --
From net realized gains -- --
----------- -------------
Total distributions
declared to shareholders -- (0.05)
- -------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.39 $ 11.18
Total return (f) 10.85%(g)(h) 11.76%(g)
- -------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.44%(j) 1.46%(j)
Net investment income (loss)(i) (0.17)%(j) 0.45%(j)
Waiver/reimbursement --%(j)(k) --
Portfolio turnover rate 62%(g) 55%(g)
Net assets, end of period (000's) $ 195,825 $ 185,938
- -------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
--------------------------------------------------------------------------
CLASS T SHARES 2002 2001 2000 1999 1998
- --------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.70 $ 16.37 $ 15.98 $ 14.87 $ 16.24
- --------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.02(d) 0.02 0.02 0.08(d) 0.12
Net realized and unrealized gain
(loss) on investments (2.22) (2.39) 1.33 2.02 1.32
--------- --------- ---------- ---------- ----------
Total from investment operations (2.20) (2.37) 1.35 2.10 1.44
- --------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.01) (0.02) (0.05) (0.08) (0.13)
In excess of net investment income -- --(e) --(e) -- --
From net realized gains (0.44) (1.28) (0.91) (0.91) (2.68)
--------- --------- ---------- ---------- ----------
Total distributions
declared to shareholders (0.45) (1.30) (0.96) (0.99) (2.81)
- --------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 10.05 $ 12.70 $ 16.37 $ 15.98 $ 14.87
Total return (f) (18.16)%(h) (15.46)%(h) 9.06%(h) 14.56%(h) 9.93%(h)
- --------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.35% 1.34% 1.28% 1.28% 1.28%
Net investment income (loss)(i) 0.18% 0.07% 0.16% 0.53% 0.75%
Waiver/reimbursement 0.01% 0.02% 0.09% 0.10% 0.07%
Portfolio turnover rate 13% 19% 42% 20% 38%
Net assets, end of period (000's) $ 180,269 $ 259,884 $ 217,423 $ 232,110 $ 214,110
- --------------------------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Large Cap Core Fund was renamed the
Columbia Large Cap Core Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On December 9, 2002, the Galaxy Growth & Income Fund, Retail A shares were
redesignated Liberty Large Cap Core Fund, Class T shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Rounds to less than $0.01 per share.
(f) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(g) Not annualized.
(h) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
(k) Rounds to less than 0.01%.
114
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Large Cap Core Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, SEPTEMBER 30,
CLASS Z SHARES 2004 (a) 2003 (b)(c)
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.25 $ 10.11
- ----------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.01(d) 0.08(d)
Net realized and unrealized gain
(loss) on investments 1.23 1.15
---------- ----------
Total from investment operations 1.24 1.23
- ----------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.02) (0.09)
In excess of net investment income -- --
From net realized gains -- --
---------- ----------
Total distributions
declared to shareholders (0.02) (0.09)
- ----------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.47 $ 11.25
Total return (f) 11.02%(g)(h) 12.20%(g)
- ----------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.07%(j) 1.03%(j)
Net investment income (i) 0.20%(j) 0.89%(j)
Waiver/reimbursement --%(j)(k) --
Portfolio turnover rate 62%(g) 55%(g)
Net assets, end of period (000's) $ 198,642 $ 190,195
- ----------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
---------------------------------------------------------------------------
CLASS Z SHARES 2002 2001 2000 1999 1998
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.77 $ 16.43 $ 16.02 $ 14.90 $ 16.28
- ------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.07(d) 0.06 0.08 0.13(d) 0.15
Net realized and unrealized gain
(loss) on investments (2.23) (2.39) 1.32 2.02 1.31
---------- ----------- ---------- ---------- ----------
Total from investment operations (2.16) (2.33) 1.40 2.15 1.46
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.06) (0.05) (0.08) (0.12) (0.16)
In excess of net investment income -- --(e) --(e) -- --
From net realized gains (0.44) (1.28) (0.91) (0.91) (2.68)
---------- ----------- ---------- ---------- ----------
Total distributions
declared to shareholders (0.50) (1.33) (0.99) (1.03) (2.84)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 10.11 $ 12.77 $ 16.43 $ 16.02 $ 14.90
Total return (f) (17.85)%(h) (15.12)% 9.38% 14.85% 10.10%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 0.97% 0.97% 1.00% 1.05% 1.03%
Net investment income (i) 0.56% 0.44% 0.44% 0.76% 1.00%
Waiver/reimbursement 0.03% -- -- -- --
Portfolio turnover rate 13% 19% 42% 20% 38%
Net assets, end of period (000's) $ 340,496 $ 460,302 $ 678,398 $ 309,106 $ 254,060
- ------------------------------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Large Cap Core Fund was renamed the
Columbia Large Cap Core Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On December 9, 2002, the Galaxy Growth & Income Fund, Trust shares were
redesignated Liberty Large Cap Core Fund, Class Z shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(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 and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
(k) Rounds to less than 0.01%.
115
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Small Cap Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, SEPTEMBER 30,
CLASS A SHARES 2004 (a) 2003 (b)(c)
- ------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.30 $ 12.64
- ------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.03)(e) (0.04)(e)
Net realized and unrealized gain
(loss) on investments 2.84 3.35
---------- -------------
Total from investment operations 2.81 3.31
- ------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income -- --
From net realized gains (0.44) (0.65)
---------- -------------
Total distributions
declared to shareholders (0.44) (0.65)
- ------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 17.67 $ 15.30
Total return (f)(g) 18.60%(h) 27.25%(h)
- ------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.12%(j) 1.24%(j)
Net investment income (loss)(i) (0.36)%(j) (0.28)%(j)
Waiver/reimbursement --%(j)(k) 0.02%(j)
Portfolio turnover rate 10%(h) 19%(h)
Net assets, end of period (000's) $ 205,439 $ 57,462
- ------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
---------------------------------------------------
CLASS A SHARES 2002 2001 2000 1999 (d)
- ------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.05 $ 14.33 $ 13.04 $ 13.59
- ------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.03)(e) 0.02(e) 0.05(e) 0.03
Net realized and unrealized gain
(loss) on investments (0.07) 1.61 2.64 0.73
------- -------- ------- --------
Total from investment operations (0.10) 1.63 2.69 0.76
- ------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income -- (0.04) (0.04) (0.04)
From net realized gains (1.31) (1.87) (1.36) (1.27)
------- -------- ------- --------
Total distributions
declared to shareholders (1.31) (1.91) (1.40) (1.31)
- ------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.64 $ 14.05 $ 14.33 $ 13.04
Total return (f)(g) (1.73)% 12.87% 22.26% 5.80%
- ------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.29% 1.23% 1.16% 1.18%
Net investment income (loss)(i) (0.19)% 0.17% 0.36% 0.26%
Waiver/reimbursement 0.01% 0.04% 0.16% 0.22%
Portfolio turnover rate 23% 46% 43% 42%
Net assets, end of period (000's) $ 210 $ 168 $ 189 $ 175
- ------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Small Cap Fund was renamed the Columbia
Small Cap Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Small Cap Value Fund, Prime A shares were
redesignated Liberty Small Cap Fund, Class A shares.
(d) The Fund began offering Prime B shares on November 1, 1998.
(e) Per share data was calculated using average shares outstanding during the
period.
(f) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(g) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(h) Not annualized.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
(k) Rounds to less than 0.01%.
116
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Small Cap Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, SEPTEMBER 30,
CLASS B SHARES 2004 (a) 2003 (b)(c)
- ----------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.75 $ 12.31
- ----------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.09)(e) (0.15)(e)
Net realized and unrealized gain
(loss) on investments 2.76 3.24
---------- -----------
Total from investment operations 2.67 3.09
- ----------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net realized gains (0.34) (0.65)
- ----------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 17.08 $ 14.75
Total return (f)(g) 18.28%(h) 26.14%(h)
- ----------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.88%(j) 2.10%(j)
Net investment loss (i) (1.12)%(j) (1.14)%(j)
Waiver/reimbursement --%(j)(k) 0.02%(j)
Portfolio turnover rate 10%(h) 19%(h)
Net assets, end of period (000's) $ 41,976 $ 11,122
- ----------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
---------------------------------------------------
CLASS B SHARES 2002 2001 2000 1999 (d)
- ------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.82 $ 14.19 $ 12.98 $ 13.59
- ------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.14)(e) (0.10)(e) (0.05)(e) (0.05)
Net realized and unrealized gain
(loss) on investments (0.06) 1.60 2.62 0.71
Total from investment operations (0.20) 1.50 2.57 0.66
- ------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net realized gains (1.31) (1.87) (1.36) (1.27)
- ------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.31 $ 13.82 $ 14.19 $ 12.98
Total return (f)(g) (2.55)% 11.91% 21.46% 4.96%
- ------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 2.12% 2.08% 1.93% 1.93%
Net investment loss (i) (1.02)% (0.68)% (0.41)% (0.49)%
Waiver/reimbursement 0.01% 0.07% 0.53% 0.56%
Portfolio turnover rate 23% 46% 43% 42%
Net assets, end of period (000's) $ 282 $ 198 $ 170 $ 190
- ------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Small Cap Fund was renamed the Columbia
Small Cap Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Small Cap Value Fund, Prime B shares were
redesignated Liberty Small Cap Fund, Class B shares.
(d) The Fund began offering Prime B shares on November 1, 1998.
(e) Per share data was calculated using average shares outstanding during the
period.
(f) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(g) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(h) Not annualized.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
(k) Rounds to less than 0.01%.
117
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Small Cap Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
MARCH 31, SEPTEMBER 30,
CLASS C SHARES 2004 (a) 2003 (b)(c)
- ----------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.77 $ 12.55
- ----------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (d) (0.09) (0.14)
Net realized and unrealized gain on investments 2.75 3.01
----------- -------------
Total from investment operations 2.66 2.87
- ----------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net realized gains (0.34) (0.65)
- ----------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 17.09 $ 14.77
Total return (e)(f)(g) 18.18% 23.90%
- ----------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (h)(i) 1.87% 2.03%
Net investment loss (h)(i) (1.11)% (1.10)%
Waiver/reimbursement (i) --%(j) 0.02%
Portfolio turnover rate (g) 10% 19%
Net assets, end of period (000's) $ 65,384 $ 12,670
- ----------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Small Cap Fund was renamed the Columbia
Small Cap Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) Class C shares were initially offered on November 18, 2002. Per share data
and total return reflect activity from that date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(f) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(g) Not annualized.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
(j) Rounds to less than 0.01%.
118
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Small Cap Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, SEPTEMBER 30,
CLASS G SHARES 2004 (a) 2003 (b)(c)
- -------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.63 $ 12.22
- -------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.09)(e) (0.12)(e)
Net realized and unrealized gain
(loss) on investments 2.73 3.18
---------- -------------
Total from investment operations 2.64 3.06
- -------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net realized gains (0.34) (0.65)
- -------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 16.93 $ 14.63
Total return (f) 18.22%(g)(h) 26.09%(g)(h)
- -------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.86%(j) 2.10%(j)
Net investment loss (i) (1.10)%(j) (1.03)%(j)
Waiver/reimbursement --%(j)(k) 0.02%(j)
Portfolio turnover rate 10%(g) 19%(g)
Net assets, end of period (000's) $ 11,611 $ 10,353
- -------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
---------------------------------------------------------
CLASS G SHARES 2002 2001 2000 1999 (d)
- ------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.72 $ 14.13 $ 12.96 $ 13.59
- ------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.14)(e) (0.11)(e) (0.10)(e) (0.04)
Net realized and unrealized gain
(loss) on investments (0.05) 1.57 2.63 0.68
--------- --------- --------- ---------
Total from investment operations (0.19) 1.46 2.53 0.64
- ------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net realized gains (1.31) (1.87) (1.36) (1.27)
- ------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.22 $ 13.72 $ 14.13 $ 12.96
Total return (f) (2.49)%(h) 11.73% 21.06%(h) 4.80%(h)
- ------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 2.12% 2.21% 2.23% 2.10%
Net investment loss (i) (1.02)% (0.80)% (0.71)% (0.66)%
Waiver/reimbursement 0.01% -- 0.18% 0.78%
Portfolio turnover rate 23% 46% 43% 42%
Net assets, end of period (000's) $ 9,046 $ 5,278 $ 2,838 $ 1,637
- ------------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Small Cap Fund was renamed the Columbia
Small Cap Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Small Cap Value Fund, Retail B shares were
redesignated Liberty Small Cap Fund, Class G shares.
(d) The Fund began offering Retail B shares on November 1, 1998.
(e) Per share data was calculated using average shares outstanding during the
period.
(f) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(g) Not annualized.
(h) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
(k) Rounds to less than 0.01%.
119
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Small Cap Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, SEPTEMBER 30,
CLASS T SHARES 2004 (a) 2003 (b)(c)
- -----------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.16 $ 12.55
- -----------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.04)(d) (0.03)(d)
Net realized and unrealized gain
(loss) on investments 2.83 3.29
--------- ---------
Total from investment operations 2.79 3.26
- -----------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income -- --
From net realized gains (0.42) (0.65)
--------- ---------
Total distributions
declared to shareholders (0.42) (0.65)
- -----------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 17.53 $ 15.16
Total return (f) 18.61%(g)(h) 27.03%(g)(h)
- -----------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.19%(j) 1.34%(j)
Net investment income (loss)(i) (0.43)%(j) (0.26)%(j)
Waiver/reimbursement --%(j)(k) 0.02%(j)
Portfolio turnover rate 10%(g) 19%(g)
Net assets, end of period (000's) $ 157,954 $ 134,455
- -----------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
--------------------------------------------------------------------------
CLASS T SHARES 2002 2001 2000 1999 1998
- ------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.96 $ 14.25 $ 12.98 $ 13.53 $ 18.29
- ------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.03)(d) --(d)(e) 0.01(d) 0.02 0.08
Net realized and unrealized gain
(loss) on investments (0.07) 1.59 2.63 0.73 (2.08)
--------- --------- --------- ---------- ----------
Total from investment operations (0.10) 1.59 2.64 0.75 (2.00)
- ------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income -- (0.01) (0.01) (0.03) (0.08)
From net realized gains (1.31) (1.87) (1.36) (1.27) (2.68)
--------- --------- --------- ---------- ----------
Total distributions
declared to shareholders (1.31) (1.88) (1.37) (1.30) (2.76)
- ------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.55 $ 13.96 $ 14.25 $ 12.98 $ 13.53
Total return (f) (1.75)%(h) 12.66% 21.96%(h) 5.68%(h) (12.52)%(h)
- ------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.33% 1.42% 1.44% 1.31% 1.31%
Net investment income (loss)(i) (0.23)% (0.02)% 0.08% 0.13% 0.38%
Waiver/reimbursement 0.01% -- 0.11% 0.28% 0.14%
Portfolio turnover rate 23% 46% 43% 42% 33%
Net assets, end of period (000's) $ 115,468 $ 100,159 $ 87,457 $ 80,870 $ 87,781
- ------------------------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Small Cap Fund was renamed the Columbia
Small Cap Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Small Cap Value Fund, Retail A shares were
redesignated Liberty Small Cap Fund, Class T shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Rounds to less than $0.01 per share.
(f) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(g) Not annualized.
(h) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
(k) Rounds to less than 0.01%.
120
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Small Cap Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, SEPTEMBER 30,
CLASS Z SHARES 2004 (a) 2003 (b)(c)
- --------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.45 $ 12.75
- --------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.01)(d) 0.02(d)
Net realized and unrealized gain
(loss) on investments 2.88 3.34
------------ ----------
Total from investment operations 2.87 3.36
- --------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income -- (0.01)
From net realized gains (0.49) (0.65)
------------ ----------
Total distributions
declared to shareholders (0.49) (0.66)
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 17.83 $ 15.45
Total return (e) 18.78%(f)(g) 27.44%(f)(g)
- --------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (h) 0.87%(i) 0.92%(i)
Net investment income (loss)(h) (0.11)%(i) 0.14%(i)
Waiver/reimbursement --%(i)(j) 0.02%(i)
Portfolio turnover rate 10%(f) 19%(f)
Net assets, end of period (000's) $ 1,099,106 $ 789,666
- --------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
----------------------------------------------------------------------
CLASS Z SHARES 2002 2001 2000 1999 1998
- -----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.11 $ 14.38 $ 13.07 $ 13.61 $ 18.37
- -----------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.03(d) 0.07(d) 0.08(d) 0.05 0.11
Net realized and unrealized gain
(loss) on investments (0.07) 1.60 2.65 0.74 (2.06)
---------- --------- --------- ---------- ----------
Total from investment operations (0.04) 1.67 2.73 0.79 (1.95)
- -----------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.01) (0.07) (0.06) (0.06) (0.13)
From net realized gains (1.31) (1.87) (1.36) (1.27) (2.68)
---------- --------- --------- ---------- ----------
Total distributions
declared to shareholders (1.32) (1.94) (1.42) (1.33) (2.81)
- -----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.75 $ 14.11 $ 14.38 $ 13.07 $ 13.61
Total return (e) (1.26)%(g) 13.20% 22.62% 6.02% (12.07)%
- -----------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (h) 0.90% 0.92% 0.94% 0.97% 0.96%
Net investment income (loss)(h) 0.20% 0.48% 0.58% 0.47% 0.73%
Waiver/reimbursement 0.01% -- -- -- --
Portfolio turnover rate 23% 46% 43% 42% 33%
Net assets, end of period (000's) $ 485,197 $ 425,687 $ 332,703 $ 255,268 $ 202,385
- -----------------------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Small Cap Fund was renamed the Columbia
Small Cap Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Small Cap Value Fund, Trust shares were
redesignated Liberty Small Cap Fund, Class Z shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Total return at net asset value assuming all distributions reinvested.
(f) Not annualized.
(g) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
(j) Rounds to less than 0.01%.
121
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Small Company Equity Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
MARCH 31, SEPTEMBER 30,
CLASS A SHARES 2004 (a) 2003 (b)(c)
- ------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.10 $ 11.74
- ------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (d) (0.09) (0.17)
Net realized and unrealized gain on investments 3.45 2.53
----------- ---------
Total from investment operations 3.36 2.36
- ------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 17.46 $ 14.10
Total return (e)(f) 23.83%(g) 20.10%
- ------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (h)(i) 1.35% 1.62%
Net investment loss (h)(i) (1.10)% (1.42)%
Waiver/reimbursement --%(i)(j) --
Portfolio turnover rate (f) 34% 123%
Net assets, end of period (000's) $ 1,693 $ 384
- ------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Small Company Equity Fund was renamed the
Columbia Small Company Equity Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) Class A shares were initially offered on November 18, 2002. Per share data
and total return reflect activity from that date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Total return at net asset value assuming no initial sales charge or
contingent deferred sales charge.
(f) Not annualized.
(g) Had the Investment Advisor or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
(j) Rounds to less than 0.01%.
122
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Small Company Equity Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
MARCH 31, SEPTEMBER 30,
CLASS B SHARES 2004 (a) 2003 (b)(c)
- -----------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.26 $ 11.13
- -----------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (d) (0.14) (0.25)
Net realized and unrealized gain on investments 3.24 2.38
----------- -----------
Total from investment operations 3.10 2.13
- -----------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 16.36 $ 13.26
Total return (e)(f) 23.38%(g) 19.14%
- -----------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (h)(i) 2.06% 2.53%
Net investment loss (h)(i) (1.80)% (2.24)%
Waiver/reimbursement --%(i)(j) --
Portfolio turnover rate (f) 34% 123%
Net assets, end of period (000's) $ 1,131 $ 203
- -----------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Small Company Equity Fund was renamed the
Columbia Small Company Equity Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) Class B shares were initially offered on November 18, 2002. Per share data
and total return reflect activity from that date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Total return at net asset value assuming no contingent deferred sales
charge.
(f) Not annualized.
(g) Had the Investment Advisor or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
(j) Rounds to less than 0.01%.
123
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Small Company Equity Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
MARCH 31, SEPTEMBER 30,
CLASS C SHARES 2004 (a) 2003 (b)(c)
- ------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.22 $ 11.13
- ------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (d) (0.14) (0.29)
Net realized and unrealized gain on investments 3.24 2.38
--------- -----------
Total from investment operations 3.10 2.09
- ------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 16.32 $ 13.22
Total return (e)(f) 23.45%(g) 18.78%
- ------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (h)(i) 2.05% 2.84%
Net investment loss (h)(i) (1.79)% (2.59)%
Waiver/reimbursement --%(i)(j) --
Portfolio turnover rate (f) 34% 123%
Net assets, end of period (000's) $ 447 $ 56
- ------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Small Company Equity Fund was renamed the
Columbia Small Company Equity Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) Class C shares were initially offered on November 18, 2002. Per share data
and total return reflect activity from that date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Total return at net asset value assuming no contingent deferred sales
charge.
(f) Not annualized.
(g) Had the Investment Advisor or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
(j) Rounds to less than 0.01%.
124
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Small Company Equity Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, SEPTEMBER 30,
CLASS G SHARES 2004 (a) 2003 (b)(c)
- -----------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.24 $ 10.65
- -----------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.16)(d) (0.25)(d)
Net realized and unrealized gain
(loss) on investments 3.25 2.84
--------- ---------
Total from investment operations 3.09 2.59
- -----------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net realized gains -- --
In excess of net realized gains -- --
--------- ---------
Total distributions
declared to shareholders -- --
- -----------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 16.33 $ 13.24
Total return (f) 23.34%(g)(h) 24.32%(g)
- -----------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 2.26%(j) 2.53%(j)
Net investment loss (i) (2.06)%(j) (2.34)%(j)
Waiver/reimbursement --%(j)(k) --
Portfolio turnover rate 34%(g) 123%(g)
Net assets, end of period (000's) $ 6,348 $ 6,651
- -----------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
------------------------------------------------------------------------
CLASS G SHARES 2002 2001 2000 1999 1998
- -------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.30 $ 21.10 $ 15.31 $ 13.39 $ 20.73
- -------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.27)(d) (0.25) (0.37) (0.34) (0.30)
Net realized and unrealized gain
(loss) on investments (3.38) (3.15) 6.16 2.26 (4.78)
--------- --------- --------- ---------- ----------
Total from investment operations (3.65) (3.40) 5.79 1.92 (5.08)
- -------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net realized gains -- (3.40) -- -- (2.26)
In excess of net realized gains -- --(e) -- -- --
--------- --------- --------- ---------- ----------
Total distributions
declared to shareholders -- (3.40) -- -- (2.26)
- -------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 10.65 $ 14.30 $ 21.10 $ 15.31 $ 13.39
Total return (f) (25.52)%(h) (17.66)% 37.82%(h) 14.34%(h) (26.72)%(h)
- -------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 2.29% 2.25% 2.24% 2.16% 2.11%
Net investment loss (i) (1.97)% (1.74)% (1.79)% (2.04)% (1.78)%
Waiver/reimbursement 0.03% -- 0.01% 0.16% 0.05%
Portfolio turnover rate 96% 75% 91% 105% 78%
Net assets, end of period (000's) $ 9,148 $ 15,190 $ 18,936 $ 12,212 $ 12,565
- -------------------------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Small Company Equity Fund was renamed the
Columbia Small Company Equity Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Small Company Equity Fund, Retail B shares
were redesignated Liberty Small Company Equity Fund, Class G shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Rounds to less than $0.01 per share.
(f) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(g) Not annualized.
(h) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
(k) Rounds to less than 0.01%.
125
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Small Company Equity Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, SEPTEMBER 30,
CLASS T SHARES 2004 (a) 2003 (b)(c)
- ------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.09 $ 11.23
- ------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.10)(d) (0.15)(d)
Net realized and unrealized gain
(loss) on investments 3.46 3.01
----------- ----------
Total from investment operations 3.36 2.86
- ------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net realized gains -- --
In excess of net realized gains -- --
----------- ----------
Total distributions
declared to shareholders -- --
- ------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 17.45 $ 14.09
Total return (f) 23.85%(g)(h) 25.47%(g)(h)
- ------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.43%(j) 1.54%(j)
Net investment loss (i) (1.23)%(j) (1.35)%(j)
Waiver/reimbursement 0.02%(j) 0.05%(j)
Portfolio turnover rate 34%(g) 123%(g)
Net assets, end of period (000's) $ 78,840 $ 66,780
- ------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
----------------------------------------------------------------------
CLASS T SHARES 2002 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.95 $ 21.75 $ 15.66 $ 13.63 $ 20.94
- ----------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.16)(d) (0.17) (0.22) (0.23) (0.19)
Net realized and unrealized gain
(loss) on investments (3.56) (3.23) 6.31 2.26 (4.86)
--------- --------- --------- ---------- ----------
Total from investment operations (3.72) (3.40) 6.09 2.03 (5.05)
- ----------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net realized gains -- (3.40) -- -- (2.26)
In excess of net realized gains -- --(e) -- -- --
--------- --------- --------- ---------- ----------
Total distributions
declared to shareholders -- (3.40) -- -- (2.26)
- ----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 11.23 $ 14.95 $ 21.75 $ 15.66 $ 13.63
Total return (f) (24.88)%(h) (17.03)% 38.89% 14.89%(h) (26.26)%(h)
- ----------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.46% 1.42% 1.44% 1.53% 1.46%
Net investment loss (i) (1.14)% (0.91)% (0.99)% (1.41)% (1.13)%
Waiver/reimbursement 0.03% -- -- 0.01% 0.01%
Portfolio turnover rate 96% 75% 91% 105% 78%
Net assets, end of period (000's) $ 57,537 $ 84,332 $ 125,427 $ 87,921 $ 95,831
- ----------------------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Small Company Equity Fund was renamed the
Columbia Small Company Equity Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Small Company Equity Fund, Retail A shares
were redesignated Liberty Small Company Equity Fund, Class T shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Rounds to less than $0.01 per share.
(f) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(g) Not annualized.
(h) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
126
FINANCIAL HIGHLIGHTS____________________________________________________________
Columbia Small Company Equity Fund
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, SEPTEMBER 30,
CLASS Z SHARES 2004 (a) 2003 (b)(c)
- -------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.85 $ 11.79
- -------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.07)(d) (0.11)(d)
Net realized and unrealized gain
(loss) on investments 3.65 3.17
----------- -----------
Total from investment operations 3.58 3.06
- -------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net realized gains -- --
In excess of net realized gains -- --
----------- -----------
Total distributions
declared to shareholders -- --
- -------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 18.43 $ 14.85
Total return (f) 24.11%(g)(h) 25.95%(g)
- -------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.07%(j) 1.12%(j)
Net investment loss (i) (0.87)%(j) (0.93)%(j)
Waiver/reimbursement --%(j)(k) --
Portfolio turnover rate 34%(g) 123%(g)
Net assets, end of period (000's) $ 337,083 $ 293,603
- -------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
-----------------------------------------------------------------
CLASS Z SHARES 2002 2001 2000 1999 1998
- -----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.63 $ 22.48 $ 16.13 $ 13.96 $ 21.32
- -----------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.11)(d) (0.10) (0.12) (0.16) (0.14)
Net realized and unrealized gain
(loss) on investments (3.73) (3.35) 6.47 2.33 (4.96)
-------- --------- --------- ---------- ----------
Total from investment operations (3.84) (3.45) 6.35 2.17 (5.10)
- -----------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net realized gains -- (3.40) -- -- (2.26)
In excess of net realized gains -- --(e) -- -- --
-------- --------- --------- ---------- ----------
Total distributions
declared to shareholders -- (3.40) -- -- (2.26)
- -----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 11.79 $ 15.63 $ 22.48 $ 16.13 $ 13.96
Total return (f) (24.62)%(h) (16.63)% 39.43% 15.54% (26.00)%
- -----------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.04% 1.03% 1.03% 1.12% 1.09%
Net investment loss (i) (0.72)% (0.52)% (0.58)% (1.00)% (0.76)%
Waiver/reimbursement 0.01% -- -- -- --
Portfolio turnover rate 96% 75% 91% 105% 78%
Net assets, end of period (000's) $217,377 $ 318,414 $ 422,579 $ 233,326 $ 222,675
- -----------------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Small Company Equity Fund was renamed the
Columbia Small Company Equity Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Small Company Equity Fund, Trust shares
were renamed Liberty Small Company Equity Fund, Class Z shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(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 and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
(k) Rounds to less than 0.01%.
127
IMPORTANT INFORMATION ABOUT THIS REPORT_________________________________________
Columbia Equity 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 02110
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 Equity 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.
128
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reports by electronic delivery. With Columbia's eDelivery program, you receive
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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 Equity Funds SEMIANNUAL REPORT, MARCH 31, 2004
PRSRT STD
U.S. Postage
PAID
Holliston, MA
Permit NO. 20
Columbia Funds LOGO
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
G-03/624R-0304 (05/04) 04/1036
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 Funds Trust XI
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By (Signature and Title) /s/ J. Kevin Connaughton
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J. Kevin Connaughton, President and Treasurer
Date June 7, 2004
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title) /s/ J. Kevin Connaughton
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J. Kevin Connaughton, President and Treasurer
Date June 7, 2004
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