UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-01449
---------
Columbia Growth Fund, Inc.
----------------------------------------------------------------------
(Exact name of registrant as specified in charter)
One Financial Center, Boston, Massachusetts 02111
----------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Vincent Pietropaolo, Esq.
Columbia Management Group, Inc.
One Financial Center
Boston, MA 02111
----------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: 1-617-772-3698
--------------
Date of fiscal year end: 08/31/05
--------
Date of reporting period: 02/28/05
--------
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. Section 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
COLUMBIA FUNDS
SEMIANNUAL REPORT
FEBRUARY 28, 2005
[PHOTO OF WOMAN STANDING]
COLUMBIA COMMON STOCK FUND
COLUMBIA GROWTH FUND
COLUMBIA INTERNATIONAL STOCK FUND
COLUMBIA MID CAP GROWTH FUND
COLUMBIA SMALL CAP GROWTH FUND
COLUMBIA REAL ESTATE EQUITY FUND
COLUMBIA TECHNOLOGY FUND
COLUMBIA STRATEGIC INVESTOR FUND
COLUMBIA BALANCED FUND
COLUMBIA SHORT TERM BOND FUND
COLUMBIA FIXED INCOME SECURITIES FUND
COLUMBIA NATIONAL MUNICIPAL BOND FUND
COLUMBIA OREGON MUNICIPAL BOND FUND
COLUMBIA HIGH YIELD FUND
COLUMBIA DAILY INCOME COMPANY
TABLE OF CONTENTS
ECONOMIC UPDATE ......................................... 1
COLUMBIA COMMON STOCK FUND .............................. 2
COLUMBIA GROWTH FUND .................................... 6
COLUMBIA INTERNATIONAL STOCK FUND ....................... 10
COLUMBIA MID CAP GROWTH FUND ............................ 14
COLUMBIA SMALL CAP GROWTH FUND .......................... 18
COLUMBIA REAL ESTATE EQUITY FUND ........................ 22
COLUMBIA TECHNOLOGY FUND ................................ 26
COLUMBIA STRATEGIC INVESTOR FUND ........................ 30
COLUMBIA BALANCED FUND .................................. 34
COLUMBIA SHORT TERM BOND FUND ........................... 38
COLUMBIA FIXED INCOME SECURITIES FUND ................... 42
COLUMBIA NATIONAL MUNICIPAL BOND FUND ................... 46
COLUMBIA OREGON MUNICIPAL BOND FUND ..................... 50
COLUMBIA HIGH YIELD FUND ................................ 54
COLUMBIA DAILY INCOME COMPANY ........................... 58
FINANCIAL STATEMENTS .................................... 64
COLUMBIA FUNDS .......................................... 223
IMPORTANT INFORMATION ABOUT THIS REPORT ................. 225
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
PRESIDENT'S MESSAGE ____________________________________________________________
Columbia Funds
Dear Shareholder:
[Photo of Christopher Wilson]
In 2004, Columbia Funds became part of the Bank of America family, one of the
largest, most respected financial institutions in the United States. As a direct
result of this merger, a number of changes are in the works that we believe may
offer significant benefits for our shareholders. Plans are underway to combine
various Nations Funds and Columbia Funds together to form a single fund family
that covers a wide range of markets, sectors and asset classes under the
management of talented, seasoned investment professionals. As a result, some
funds will be merged in order to eliminate redundancies and fund management
teams will be aligned to maximize performance potential. You will receive more
detailed information about these proposed mergers, and you will be asked to vote
on certain fund changes that may affect you and your account. In this matter,
your timely response will help us to implement the changes in 2005.
The increased efficiencies we expect from a more streamlined offering of funds
may help us reduce fees charged to the funds, because larger funds often benefit
from size and scale of operations. For example, significant savings for the
combined complex may result from the consolidation of certain vendor agreements.
In fact, negotiations are currently underway to consolidate the transfer agency
of all of our funds and to consolidate custodial services, each under a single
vendor. We have reduced management fees for many funds as part of our settlement
agreement (See Note 10 in the Notes to Financial Statements) with the New York
Attorney General.
As a result of these changes, we believe we will offer shareholders an even
stronger lineup of investment options, with management expenses that continue to
be competitive and fair. What will not change as we enter this next phase of
consolidation is our commitment to the highest standards of performance and our
dedication to superior service. Change for the good has another name: it's
called improvement. It helps move us forward, and we believe that it represents
progress for all our shareholders in their quest for long-term financial
success. In the pages that follow, you'll find a discussion of the economic
environment during the period followed by a detailed report from the fund's
manager or managers on key factors that influenced performance. We hope that you
will read the manager reports carefully and discuss any questions you might have
with your financial advisor. As always, we thank you for choosing Columbia
Funds. We appreciate your continued confidence. And, we look forward to helping
you keep your long-term financial goals on target in the years to come.
Sincerely,
/s/ Christopher Wilson
Christopher Wilson
HEAD OF MUTUAL FUNDS, COLUMBIA MANAGEMENT
Christopher Wilson is Head of Mutual Funds for Columbia Management, responsible
for the day-to-day delivery of mutual fund services to the firm's investors.
With the exception of distribution, Chris oversees all aspects of the mutual
fund services operation, including treasury, investment accounting and
shareholder and broker services. Chris serves as Columbia Management's liaison
to the mutual fund boards of trustees. Chris joined Bank of America in August
2004.
[sidebar]
SUMMARY
FOR THE SIX-MONTH PERIOD ENDED
FEBRUARY 28, 2005
o After a weak start, stock prices bounced back in the second half of the
period, helping the S&P 500 Index to a 9.99% gain. Foreign stocks did even
better than US stocks, as measured by the MSCI EAFE Index, which returned
21.18%
[UP ARROW] [UP ARROW]
S&P 500 MSCI
INDEX INDEX
9.99% 21.18%
o Investment-grade bonds delivered modest gains. The Lehman Brothers
Aggregate Bond Index returned 1.26%. High-yield bonds led the fixed income
markets. The Merrill Lynch US High Yield, Cash Pay Only Index returned
7.32%
[UP ARROW] [UP ARROW]
LEHMAN MERRILL LYNCH
INDEX INDEX
1.26% 7.32%
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 Lehman Brothers Aggregate Bond Index is a market value-weighted index that
tracks the performance of fixed-rate, publicly placed, dollar-denominated,
non-convertible investment-grade debt issues.
The Merrill Lynch US High Yield, Cash Pay Only Index is an unmanaged index that
tracks the performance of non-investment grade corporate bonds.
ECONOMIC UPDATE ________________________________________________________________
Columbia Funds
During the six-month period that began September 1, 2004, and ended February 28,
2005, the US economy grew at a healthy pace, as household spending expanded and
business investment in equipment and software climbed at a double-digit pace.
Fourth quarter gross domestic product (GDP) was originally estimated at 3.1%.
However, it was revised to 3.8% once it was discovered that the trade gap
appeared to have been overstated. In fact, nearly all sectors that contribute to
US GDP were revised higher.
Job growth dominated US economic news as the pace of new job creation picked up
and more than two million jobs were created in 2004. Although January's payrolls
came in somewhat below expectations, we expect generally solid advances in the
months ahead.
Consumer confidence declined early in this reporting period, but it rebounded
late in 2004 in response to an improved labor market. For 2004, holiday sales
were reported to be the strongest in five years as consumer confidence continued
to lift spending, especially at high-end specialty stores and wholesale clubs.
Outside the United States, economic growth was slower for most developed
countries and higher for emerging economies. China attempted to slow the torrid
pace of growth, yet its economy continued to grow at an estimated 9.5%.
STOCKS PICK UP MOMENTUM
After a weak start, stock market performance picked up as employment news
improved and uncertainty surrounding both US and Iraqi elections was resolved. A
majority of the S&P 500 Index's 9.99% return was generated in the second half of
the reporting period. The market gained ground in November and December after a
decisive US presidential election. In January, concerns over the Iraqi
elections, the pace of interest-rate hikes by the Federal Reserve Board (the
Fed) and some disappointing earnings guidance cooled the stock market's advance.
However, after the Iraqi elections the stock market picked up again.
Despite uneven economic results, foreign stock markets did even better than US
stocks. The MSCI EAFE Index, a broad measure of stock market performance in the
developed markets of Europe, Australasia and the Far East, gained 21.18%.
BOND RETURNS SLIDE LATE IN THE PERIOD
The US bond market delivered solid returns for most of the six-month period. As
the Fed began to raise short-term interest rates, the bond market responded
favorably. Yields on intermediate and long-term bonds edged lower--and prices
rose until the last month of the period, when the 10-year Treasury yield rose
sharply. As a result, most sectors of the bond market gave back their earlier
gains. The Lehman Brothers Aggregate Bond Index returned 1.26% for the period.
Municipal bonds outperformed taxable bonds, corporate bonds outperformed
Treasury bonds and high-yield bonds led the fixed income markets. The Merrill
Lynch US High Yield, Cash Pay Only Index returned 7.32%. A relatively strong
economy helped improve credit quality and the sector's high yields attracted
investors seeking income.
HIGHER SHORT-TERM INTEREST RATES
The Fed made good on its announced intentions to raise the federal funds rate, a
key short-term rate, at a measured pace. After four one-quarter percentage point
increases, the fed funds rate stood at 2.50% at the end of the period.1 The Fed
indicated that it would continue to raise short-term interest rates in an effort
to balance economic growth against inflationary pressures.
1 On March 22, 2005, the federal funds rate was raised to 2.75%.
1
[sidebar]
PERFORMANCE OF A $10,000 INVESTMENT
03/01/95 - 02/28/05 ($)
SALES CHARGE WITHOUT WITH
- -----------------------------------------------
Class A 23,308 21,970
- -----------------------------------------------
Class B 22,887 22,887
- -----------------------------------------------
Class C 22,887 22,887
- -----------------------------------------------
Class D 22,875 22,647
- -----------------------------------------------
Class Z 23,476 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, when
redeemed, may be worth more or less than the original cost. Please visit
www.columbiafunds.com for daily and most recent month-end performance updates.
PERFORMANCE INFORMATION ________________________________________________________
Columbia Common Stock Fund
VALUE OF A $10,000 INVESTMENT 03/01/95 - 02/28/05
[MOUNTAIN CHART]
CLASS A CLASS A
SHARES WITHOUT SHARES WITH S&P 500 RUSSELL
SALES CHARGE SALES CHARGE INDEX 1000 INDEX
-------------- ------------ --------- ----------
03/1995 10000 9425 10000 10000
10207 9620 10295 10257
10320 9727 10598 10530
10655 10042 11022 10934
10812 10191 11277 11224
11224 10579 11652 11653
11325 10674 11681 11740
11717 11043 12174 12224
11552 10888 12130 12168
12073 11379 12662 12710
12458 11742 12907 12903
12692 11963 13346 13320
12887 12146 13470 13493
13155 12398 13599 13615
13336 12569 13799 13822
13611 12828 14155 14153
13698 12910 14209 14169
13058 12307 13581 13486
13590 12808 13867 13853
14122 13310 14648 14631
14169 13354 15052 14955
15128 14258 16190 16058
15036 14171 15870 15798
15535 14642 16862 16735
15683 14781 16993 16799
15454 14565 16295 16043
15885 14972 17267 16911
16809 15843 18319 17993
17499 16492 19140 18738
18748 17670 20663 20271
18199 17152 19506 19314
18976 17885 20575 20372
18259 17209 19888 19712
18542 17475 20809 20568
18849 17765 21167 20985
18961 17870 21402 21141
20030 18878 22945 22648
20979 19773 24119 23789
20996 19789 24363 24034
20585 19401 23944 23515
21803 20549 24916 24385
21555 20315 24652 24093
18352 17296 21087 20491
19304 18194 22439 21870
20474 19297 24263 23598
21756 20505 25734 25058
23803 22434 27216 26654
24895 23464 28353 27606
24270 22875 27472 26731
25549 24080 28571 27755
25951 24458 29676 28915
25258 23805 28976 28290
27074 25517 30584 29733
26243 24734 29630 28826
25765 24283 29485 28555
25286 23832 28677 27770
26790 25250 30492 29636
27747 26151 31111 30398
29936 28215 32943 32231
28795 27140 31290 30913
29956 28233 30698 30829
33041 31141 33701 33638
32007 30167 32686 32517
30640 28878 32016 31675
32019 30178 32807 32483
31635 29816 32295 31944
33593 31661 34301 34308
31077 29290 32490 32716
30092 28362 32353 32323
27687 26095 29804 29369
28222 26599 29950 29724
28755 27102 31013 30702
25635 24161 28185 27838
24000 22620 26398 25989
25867 24380 28449 28076
25983 24489 28639 28267
25277 23823 27943 27628
24779 23354 27670 27250
23086 21759 25937 25590
20872 19672 23842 23420
21267 20044 24297 23907
22936 21617 26161 25748
23257 21920 26391 26024
22629 21328 26006 25693
22163 20889 25504 25182
22908 21591 26463 26217
21371 20142 24859 24715
21394 20164 24675 24497
19788 18650 22918 22689
17959 16927 21133 21010
18146 17103 21270 21119
16235 15302 18958 18851
17575 16564 20626 20418
18740 17662 21841 21612
17451 16447 20559 20389
17053 16072 20021 19896
16713 15752 19720 19587
16807 15840 19912 19791
18141 17098 21552 21388
18972 17881 22688 22607
19171 18069 22978 22906
19534 18411 23383 23361
20155 18996 23839 23836
19792 18654 23586 23592
20916 19714 24921 24975
21197 19978 25140 25275
22051 20783 26458 26485
22298 21016 26945 26989
22755 21447 27319 27361
22427 21138 26907 26989
21795 20542 26484 26500
22146 20872 26847 26882
22509 21215 27368 27366
21361 20133 26462 26405
21220 20000 26568 26535
21489 20254 26855 26869
21747 20497 27266 27302
22778 21468 28370 28470
23817 22447 29335 29501
23038 21713 28619 28757
02/2005 23308 21970 29212 29412
The graph and table do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares. The fund's
primary benchmark was changed to the Russell 1000 Index. The Russell 1000 Index
is an unmanaged index that tracks the performance of 1,000 of the largest U.S.
companies, based on market capitalization. The Standard & Poor's (S&P) 500 Index
is an unmanaged index that tracks the performance of 500 widely held,
large-capitalization U.S. stocks. Unlike the fund, indices are not investments,
do not incur fees or expenses and are not professionally managed. It is not
possible to invest directly in an index. Securities in the fund may not match
those in an index.
AVERAGE ANNUAL TOTAL RETURN AS OF 02/28/05 (%)
SHARE CLASS A B C D Z
- --------------------------------------------------------------------------------------------------------------
INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 10/01/91
- --------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- --------------------------------------------------------------------------------------------------------------
6-month (cumulative) 9.86 3.54 9.51 4.51 9.51 8.51 9.45 8.45 9.99
- --------------------------------------------------------------------------------------------------------------
1-year 2.44 -3.45 1.71 -3.29 1.71 0.71 1.72 0.72 2.68
- --------------------------------------------------------------------------------------------------------------
5-year -4.90 -6.02 -5.25 -5.58 -5.25 -5.25 -5.26 -5.44 -4.76
- --------------------------------------------------------------------------------------------------------------
10-year 8.83 8.19 8.63 8.63 8.63 8.63 8.63 8.52 8.91
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/04 (%)
SHARE CLASS A B C D Z
- --------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- --------------------------------------------------------------------------------------------------------------
6-month (cumulative) 5.81 -0.27 5.42 0.42 5.42 4.42 5.42 4.42 5.95
- --------------------------------------------------------------------------------------------------------------
1-year 8.01 1.80 7.23 2.23 7.17 6.17 7.17 6.17 8.26
- --------------------------------------------------------------------------------------------------------------
5-year -4.48 -5.60 -4.80 -5.14 -4.80 -4.80 -4.81 -5.00 -4.34
- --------------------------------------------------------------------------------------------------------------
10-year 9.60 8.96 9.41 9.41 9.41 9.41 9.41 9.30 9.68
THE "WITH SALES CHARGE" RETURNS INCLUDE THE MAXIMUM INITIAL SALES CHARGE OF
5.75% FOR CLASS A SHARES, MAXIMUM CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR
CLASS B SHARES AND 1.00% FOR CLASS C AND D SHARES FOR THE FIRST YEAR ONLY. THE
"WITHOUT SALES CHARGE" RETURNS DO NOT INCLUDE THE EFFECT OF SALES CHARGES. IF
THEY HAD, RETURNS WOULD BE LOWER.
ALL RESULTS SHOWN ASSUME REINVESTMENT OF DISTRIBUTIONS. CLASS Z SHARES ARE SOLD
AT NET ASSET VALUE WITH NO RULE 12B-1 FEES. PERFORMANCE FOR DIFFERENT SHARE
CLASSES WILL VARY BASED ON DIFFERENCES IN SALES CHARGES AND FEES ASSOCIATED WITH
EACH CLASS.
Effective October 13, 2003, class D shares were closed to all new investors and
new accounts. Existing class D shareholders will be able to make additional
purchases at any time. In addition, the class D initial sales charge of 1.00% is
waived after October 13, 2003.
Performance results reflect any voluntary waivers or reimbursement of fund
expenses by the advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower.
Classes A, B and D (newer class shares) share performance information includes
returns of the fund's class Z shares (the oldest existing fund class) for
periods prior to the inception of the newer class shares. The returns for class
C include the returns of class B prior to 10/13/03, the date on which class C
was initially offered by the fund. The returns shown for class C also include
the performance of class Z prior to the inception of class B (11/01/02). Class Z
share returns are not restated to reflect any expense differential (e.g., Rule
12b-1 fees) between class Z shares and the newer class shares. Had the expense
differential been reflected, the returns for the periods prior to the inception
of classes A, B, C and D would have been lower.
2
[sidebar]
ESTIMATING YOUR ACTUAL EXPENSES
To estimate the expenses that you paid over the period, first you will need your
account balance at the end of the period:
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA FUNDS
SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT
WWW.COLUMBIAFUNDS.COM OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM THEIR BROKERAGE
FIRM, CONTACT YOUR BROKERAGE FIRM TO OBTAIN YOUR ACCOUNT BALANCE
1. DIVIDE YOUR ENDING ACCOUNT BALANCE BY $1,000. FOR EXAMPLE, IF AN ACCOUNT
BALANCE WAS $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6
2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE
PERIOD," LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER
IS IN THE COLUMN LABELED "ACTUAL." MULTIPLY THIS NUMBER BY THE RESULT FROM
STEP 1. YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR
ACCOUNT DURING THE PERIOD
UNDERSTANDING YOUR EXPENSES ____________________________________________________
Columbia Common Stock Fund
As a fund shareholder, you incur two types of costs. There are transaction
costs, which generally include sales charges on purchases and may include
redemption or exchange fees. There are also ongoing costs, which generally
include investment advisory fees, Rule 12b-1 fees, and other fund expenses. The
information on this page is intended to help you understand your ongoing costs
of investing in the fund and to compare these costs with the ongoing costs of
investing in other mutual funds.
ANALYZING YOUR FUND'S EXPENSES BY SHARE CLASS
To illustrate these ongoing costs, we have provided an example and calculated
the expenses paid by investors in each share class during the reporting period.
The information in the following table is based on an initial investment of
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
09/01/04 - 02/28/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
- ------------------------------------------------------------------------------------------------------------------------
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
- ------------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,000.00 1,098.58 1,018.74 6.35 6.11 1.22
- ------------------------------------------------------------------------------------------------------------------------
Class B 1,000.00 1,000.00 1,095.11 1,015.03 10.23 9.84 1.97
- ------------------------------------------------------------------------------------------------------------------------
Class C 1,000.00 1,000.00 1,095.11 1,015.03 10.23 9.84 1.97
- ------------------------------------------------------------------------------------------------------------------------
Class D 1,000.00 1,000.00 1,094.52 1,015.03 10.23 9.84 1.97
- ------------------------------------------------------------------------------------------------------------------------
Class Z 1,000.00 1,000.00 1,099.92 1,019.98 5.05 4.86 0.97
Expenses paid during the period are equal to the fund's annualized expense
ratio, multiplied by the average account value over the period, then multiplied
by the number of days in the fund's most recent fiscal half-year and divided by
365.
It is important to note that the expense amounts shown in the table are meant to
highlight only ongoing costs of investing in the fund and do not reflect any
transactional costs, such as sales charges, redemption or exchange fees.
Therefore, the hypothetical examples provided may not help you determine the
relative total costs of owning shares of different funds. If these transactional
costs were included, your costs would have been higher.
COMPARE WITH OTHER FUNDS
Since all mutual fund companies are required to include the same hypothetical
calculations about expenses in shareholder reports, you can use this information
to compare the ongoing cost of investing in the fund with other funds. To do so,
compare the 5% hypothetical example with the 5% hypothetical examples that
appear in the shareholder reports of other funds. As you compare hypothetical
examples of other funds, it is important to note that hypothetical examples are
meant to highlight the continuing cost of investing in a fund and do not reflect
any transactional costs, such as sales charges or redemption or exchange fees.
3
[sidebar]
SUMMARY
o FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 28, 2005, THE FUND'S CLASS A
SHARES RETURNED 9.86% WITHOUT SALES CHARGE.
o THE FUND'S RETURN FELL SLIGHTLY SHORT OF THE RETURN OF THE S&P 500 INDEX.
HOWEVER IT OUTPACED THE AVERAGE RETURN OF THE LIPPER LARGE CAP CORE FUNDS
CATEGORY.
o INVESTMENTS IN CONSUMER DISCRETIONARY, ENERGY, INFORMATION TECHNOLOGY AND
HEALTH CARE WERE LEADING CONTRIBUTORS TO PERFORMANCE.
[UP ARROW] [UP ARROW]
CLASS A SHARES RUSSELL 1000 INDEX
9.86% 10.82%
OBJECTIVE
Seeks capital appreciation by
investing primarily in common
stocks of large capitalization,
well-established companies.
TOTAL NET ASSETS
$228.0 million
NET ASSET VALUE PER SHARE
AS OF 02/28/05 ($)
Class A 19.78
- -----------------------------------------------
Class B 19.58
- -----------------------------------------------
Class C 19.58
- -----------------------------------------------
Class D 19.57
- -----------------------------------------------
Class Z 19.78
DISTRIBUTIONS DECLARED PER SHARE
09/01/04 - 02/28/05 ($)
Class A 0.10
- -----------------------------------------------
Class B 0.00
- -----------------------------------------------
Class C 0.00
- -----------------------------------------------
Class D 0.00
- -----------------------------------------------
Class Z 0.15
PORTFOLIO MANAGERS' REPORT _____________________________________________________
Columbia Common Stock Fund
For the six-month period ended February 28, 2005, Columbia Common Stock Fund
class A shares returned 9.86% without sales charge. This performance trailed
both the Russell 1000 Index's return of 10.82% and the S&P 500 Index, which
returned 9.99% over the same period. The fund outperformed the average return of
its peer group, the Lipper Large Cap Core Funds Category, which was 9.27%. 1
Stock selection--particularly in the health care, energy, telecom services and
consumer staples areas--helped the fund. By contrast, sector weights detracted
from relative performance. Overall, holdings in consumer discretionary, energy,
information technology and health care groups were the largest contributors to
the fund's return.
ENERGY STOCKS SURGE; CONSUMER DISCRETIONARY AND HEALTH CARE OUTPERFORM
Although several sectors produced double-digit returns during the period, energy
stocks stood out. The fund had less exposure to energy than the index because we
believed that the stocks were overvalued and could decline. This underweight in
energy detracted from the fund's relative performance during the period. Yet,
its energy holdings surged more than 39% as oil prices rose. The fund benefited
from its holdings in consumer discretionary and health care sectors, which
outperformed both indices. Investments in selected pharmaceutical companies were
strong despite a setback for Pfizer, whose stock suffered when concerns surfaced
about the safety of COX-2 inhibitors.
ACQUISITIONS BOLSTERED PERFORMANCE
During the period, the fund owned shares in several companies whose underlying
attributes made them attractive as takeover candidates. For example, we were
drawn to Sears Roebuck because we thought the company had substantial unrealized
asset value--a marketable credit card portfolio and real estate. When shares
soared after K-Mart announced plans to acquire the company, we took profits and
eliminated the stock from the fund. We used the proceeds to invest in May
Department Stores, which enjoyed gains that were spurred by take-over
announcements. Another takeover target, International Steel Group, also gained
ground.
CONTRARIAN APPROACH ADDED VALUE
When new management took over the fund in August, 2004, we adopted a more
contrarian approach to stock selection, seeking companies that appeared to offer
opportunity because they were generally out of favor with investors or, by
contrast, avoiding companies because investors had become overly enthusiastic
about their prospects. One case in point was
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.
4
[sidebar]
TOP 5 SECTORS AS OF 02/28/05 (%)
Consumer discretionary 19.6
- -----------------------------------------------
Information technology 19.5
- -----------------------------------------------
Financials 16.4
- -----------------------------------------------
Health care 11.7
- -----------------------------------------------
Materials 9.2
TOP 10 HOLDINGS AS OF 02/28/05 (%)
MGIC Investment 2.5
- -----------------------------------------------
E.I. du Pont de Nemours 2.3
- -----------------------------------------------
Microsoft 2.3
- -----------------------------------------------
SanDisk 2.3
- -----------------------------------------------
Barr Pharmaceuticals 2.2
- -----------------------------------------------
UnumProvident 2.1
- -----------------------------------------------
Time Warner 2.1
- -----------------------------------------------
Comcast 2.0
- -----------------------------------------------
Intel 2.0
- -----------------------------------------------
Smurfit-Stone Container 2.0
HOLDINGS DISCUSSED IN THIS REPORT
AS OF 02/28/05 (%)
Pfizer 1.1
- -----------------------------------------------
May Department Stores 1.0
- -----------------------------------------------
International Steel Group 1.5
- -----------------------------------------------
Jacobs Engineering Group 0.7
- -----------------------------------------------
Nortel Networks 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 Common Stock Fund
Jacobs Engineering Group. The company fell out of favor after some operational
snags, but we believed it had the potential to get back on track. We also
believed the company was poised to benefit from the robust commercial
construction activity. The company delivered on both fronts and it was one of
the fund's best performers for the period.
Similarly, we added to semiconductor holdings after the information technology
group had been severely punished. We felt that weakness in these stocks
primarily reflected inventory corrections in the industry. With capacity
utilization rates at 85%, good global economic growth and rising demand,
semiconductor stocks rose and helped the fund's return.
In contrast, news that insurance broker Marsh McLennan and technology company
Nortel Networks were caught up in accounting issues sent their shares down
sharply. We exited the fund's position in Marsh McLennan because we were
troubled by the lack of clarity about the scope of a regulatory investigation
and its possible effect on profitability. We decided to hold onto Nortel
Networks after the company changed management and took steps to resolve its
accounting problems.
ENVIRONMENT FAVORS NIMBLE STOCK PICKING
Looking ahead, we expect slower economic growth, rising interest rates and
emerging cost pressure to set the tone for investors. In this scenario, we
believe that avoiding losing stocks is likely to be as important as finding
winners. If rising rates and cost pressures are passed on to consumers, consumer
staples companies could be especially vulnerable because they have the least
pricing power. We also think slower growth in a fundamentally sound economy
means that acquisition activity is likely to exert significant influence on
performance in 2005. We have positioned the fund to take advantage of both key
factors.
Columbia Common Stock Fund is managed by a group of managers from Columbia's
large cap core team:
/s/ John Maack /s/ Guy W. Pope
John Maack Guy W. Pope, CFA
On October 13, 2004, the Board of Trustees approved a proposal to reorganize the
Columbia Common Stock Fund into Columbia Large Cap Core Fund, subject to
shareholder approval and the satisfaction of certain other conditions.
Shareholders approved the merger at a shareholder meeting held on March 11,
2005. The merger was completed at the close of business on March 18, 2005.
Equity investments are affected by stock market fluctuations that occur in
response to economic and business developments.
5
[sidebar]
PERFORMANCE OF A $10,000 INVESTMENT
03/01/95 - 02/28/05 ($)
SALES CHARGE WITHOUT WITH
- -----------------------------------------------
Class A 20,385 19,215
- -----------------------------------------------
Class B 20,045 20,045
- -----------------------------------------------
Class C 19,993 19,993
- -----------------------------------------------
Class D 20,059 19,861
- -----------------------------------------------
Class G 20,077 20,077
- -----------------------------------------------
Class Z 20,540 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, when
redeemed, may be worth more or less than the original cost. Please visit
www.columbiafunds.com for daily and most recent month-end performance updates.
PERFORMANCE INFORMATION ________________________________________________________
Columbia Growth Fund
VALUE OF A $10,000 INVESTMENT 03/01/95 - 02/28/05
[MOUNTAIN CHART]
CLASS A CLASS A RUSSELL
SHARES WITHOUT SHARES WITH S&P 500 1000
SALES CHARGE SALES CHARGE INDEX GROWTH INDEX
-------------- ------------ --------- ------------
03/1995 10000 9425 10000 10000
10360 9764 10295 10292
10505 9901 10598 10517
10742 10125 11022 10883
11149 10507 11277 11303
11589 10923 11652 11774
11792 11114 11681 11787
12102 11406 12174 12330
11792 11114 12130 12339
12528 11807 12662 12819
12652 11924 12907 12892
12783 12048 13346 13322
13369 12600 13470 13566
13322 12556 13599 13584
13763 12972 13799 13941
14162 13348 14155 14428
14158 13344 14209 14448
13098 12344 13581 13601
13543 12764 13867 13952
14335 13511 14648 14968
14589 13750 15052 15058
15479 14589 16190 16188
15282 14403 15870 15871
15819 14909 16862 16984
15833 14922 16993 16868
15027 14163 16295 15956
15772 14865 17267 17015
16846 15878 18319 18243
17547 16538 19140 18973
19104 18005 20663 20650
18402 17344 19506 19442
19133 18033 20575 20399
18651 17578 19888 19644
19168 18065 20809 20479
19302 18192 21167 20708
19819 18679 21402 21328
21276 20052 22945 22931
22282 21001 24119 23846
22349 21064 24363 24176
21810 20556 23944 23489
23464 22114 24916 24926
23121 21791 24652 24762
19315 18205 21087 21045
20036 18884 22439 22661
21160 19943 24263 24483
22554 21257 25734 26347
25164 23717 27216 28723
26749 25211 28353 30409
25861 24374 27472 29019
27431 25853 28571 30549
27483 25902 29676 30588
26796 25255 28976 29649
28827 27169 30584 31725
27821 26221 29630 30716
27058 25503 29485 31217
26555 25028 28677 30561
28042 26430 30492 32868
29391 27701 31111 34643
31713 29889 32943 38246
30632 28870 31290 36453
32368 30507 30698 38235
35799 33741 33701 40973
34339 32364 32686 39022
32172 30322 32016 37056
35026 33012 32807 39864
34837 32833 32295 38202
37644 35480 34301 41659
34350 32375 32490 37718
32313 30455 32353 35934
28481 26843 29804 30638
29193 27515 29950 29669
30848 29075 31013 31720
25931 24440 28185 26334
23105 21776 26398 23469
25997 24503 28449 26437
25719 24240 28639 26049
25159 23712 27943 25444
24079 22695 27670 24808
22004 20738 25937 22779
19621 18492 23842 20506
20727 19535 24297 21582
22897 21581 26161 23656
22945 21626 26391 23611
22002 20737 26006 23193
20838 19640 25504 22231
21637 20392 26463 23000
19828 18688 24859 21123
19594 18467 24675 20612
17640 16626 22918 18705
15942 15025 21133 17677
16184 15253 21270 17730
14530 13694 18958 15891
15752 14846 20626 17348
16454 15508 21841 18290
15247 14370 20559 17026
14910 14052 20021 16613
14822 13969 19720 16536
15063 14197 19912 16844
16220 15287 21552 18089
17010 16032 22688 18991
17178 16191 22978 19253
17551 16542 23383 19733
18013 16977 23839 20224
17573 16563 23586 20008
18533 17467 24921 21132
18766 17687 25140 21354
19205 18101 26458 22093
19549 18425 26945 22544
19674 18543 27319 22688
19491 18371 26907 22266
18942 17853 26484 22008
19447 18329 26847 22417
19762 18626 27368 22697
18496 17432 26462 21415
18246 17197 26568 21310
18620 17549 26855 21512
18987 17895 27266 21848
19887 18743 28370 22599
20702 19512 29335 23485
20203 19042 28619 22703
02/2005 20385 19215 29212 22945
The graph and table do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares. The Standard &
Poor's (S&P) 500 Index is an unmanaged index that tracks the performance of 500
widely held, large-capitalization U.S. stocks. The Russell 1000 Growth Index is
an unmanaged index that measures the performance of those Russell 1000 Index
companies with higher price-to-book ratios and higher forecasted growth values.
Unlike the fund, indices are not investments, do not incur fees or expenses and
are not professionally managed. It is not possible to invest directly in an
index. Securities in the fund may not match those in an index.
AVERAGE ANNUAL TOTAL RETURN AS OF 02/28/05 (%)
SHARE CLASS A B C D G Z
- ---------------------------------------------------------------------------------------------------------------------------------
INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 11/01/02 06/16/67
- ---------------------------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- ---------------------------------------------------------------------------------------------------------------------------------
6-month (cumulative) 11.73 5.30 11.33 6.33 11.32 10.32 11.32 10.32 11.33 6.33 11.86
- ---------------------------------------------------------------------------------------------------------------------------------
1-year 3.62 -2.34 2.92 -2.08 2.89 1.89 2.88 1.88 2.93 -2.07 3.91
- ---------------------------------------------------------------------------------------------------------------------------------
5-year -8.83 -9.90 -9.14 -9.46 -9.18 -9.18 -9.12 -9.30 -9.11 -9.59 -8.69
- ---------------------------------------------------------------------------------------------------------------------------------
10-year 7.38 6.75 7.20 7.20 7.17 7.17 7.21 7.10 7.22 7.22 7.46
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/04 (%)
SHARE CLASS A B C D G Z
- ---------------------------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- ---------------------------------------------------------------------------------------------------------------------------------
6-month (cumulative) 4.76 -1.27 4.38 -0.62 4.39 3.39 4.38 3.38 4.39 -0.61 4.88
- ---------------------------------------------------------------------------------------------------------------------------------
1-year 7.79 1.59 6.99 1.99 6.96 5.96 6.98 5.98 7.03 2.03 8.03
- ---------------------------------------------------------------------------------------------------------------------------------
5-year -8.17 -9.25 -8.47 -8.79 -8.51 -8.51 -8.45 -8.64 -8.43 -8.92 -8.04
- ---------------------------------------------------------------------------------------------------------------------------------
10-year 8.08 7.44 7.91 7.91 7.89 7.89 7.92 7.81 7.93 7.93 8.16
THE "WITH SALES CHARGE" RETURNS INCLUDE THE MAXIMUM INITIAL SALES CHARGE OF
5.75% FOR CLASS A SHARES, MAXIMUM CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR
CLASS B AND CLASS G SHARES AND 1.00% FOR CLASS C AND D SHARES FOR THE FIRST YEAR
ONLY. THE "WITHOUT SALES CHARGE" RETURNS DO NOT INCLUDE THE EFFECT OF SALES
CHARGES. IF THEY HAD, RETURNS WOULD BE LOWER.
ALL RESULTS SHOWN ASSUME REINVESTMENT OF DISTRIBUTIONS. CLASS Z SHARES ARE SOLD
AT NET ASSET VALUE WITH NO RULE 12B-1 FEES. PERFORMANCE FOR DIFFERENT SHARE
CLASSES WILL VARY BASED ON DIFFERENCES IN SALES CHARGES AND FEES ASSOCIATED WITH
EACH CLASS.
Effective October 13, 2003, class D shares were closed to all new investors and
new accounts. Existing class D shareholders will be able to make additional
purchases at any time. In addition, the class D initial sales charge of 1.00% is
waived after October 13, 2003.
Performance results reflect any voluntary waivers or reimbursement of fund
expenses by the advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower.
Classes A, B, D and G (newer class shares) share performance information
includes returns of the fund's class Z shares (the oldest existing fund class)
for periods prior to the inception of the newer class shares. The returns for
class C include the returns of class B prior to 10/13/03, the date on which
class C was initially offered by the fund. The returns shown for class C also
include the performance of class Z prior to the inception of class B (11/01/02).
Class Z share returns are not restated to reflect any expense differential
(e.g., Rule 12b-1 fees) between class Z shares and the newer class shares. Had
the expense differential been reflected, the returns for the periods prior to
the inception of classes A, B, C, D and G would have been lower.
6
[sidebar]
ESTIMATING YOUR ACTUAL EXPENSES
To estimate the expenses that you paid over the period, first you will need your
account balance at the end of the period:
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA FUNDS
SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT
WWW.COLUMBIAFUNDS.COM OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM THEIR BROKERAGE
FIRM, CONTACT YOUR BROKERAGE FIRM TO OBTAIN YOUR ACCOUNT BALANCE
1. DIVIDE YOUR ENDING ACCOUNT BALANCE BY $1,000. FOR EXAMPLE, IF AN ACCOUNT
BALANCE WAS $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6
2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE
PERIOD," LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER
IS IN THE COLUMN LABELED "ACTUAL." MULTIPLY THIS NUMBER BY THE RESULT FROM
STEP 1. YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR
ACCOUNT DURING THE PERIOD
UNDERSTANDING YOUR EXPENSES ____________________________________________________
Columbia Growth Fund
As a fund shareholder, you incur two types of costs. There are transaction
costs, which generally include sales charges on purchases and may include
redemption or exchange fees. There are also ongoing costs, which generally
include investment advisory fees, Rule 12b-1 fees, and other fund expenses. The
information on this page is intended to help you understand your ongoing costs
of investing in the fund and to compare these costs with the ongoing costs of
investing in other mutual funds.
ANALYZING YOUR FUND'S EXPENSES BY SHARE CLASS
To illustrate these ongoing costs, we have provided an example and calculated
the expenses paid by investors in each share class during the reporting period.
The information in the following table is based on an initial investment of
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
09/01/04 - 02/28/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
- ------------------------------------------------------------------------------------------------------------------------
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
- ------------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,000.00 1,117.28 1,019.29 5.83 5.56 1.11
- ------------------------------------------------------------------------------------------------------------------------
Class B 1,000.00 1,000.00 1,113.31 1,015.57 9.75 9.30 1.86
- ------------------------------------------------------------------------------------------------------------------------
Class C 1,000.00 1,000.00 1,113.21 1,015.57 9.75 9.30 1.86
- ------------------------------------------------------------------------------------------------------------------------
Class D 1,000.00 1,000.00 1,113.21 1,015.57 9.75 9.30 1.86
- ------------------------------------------------------------------------------------------------------------------------
Class G 1,000.00 1,000.00 1,113.31 1,015.82 9.48 9.05 1.81
- ------------------------------------------------------------------------------------------------------------------------
Class Z 1,000.00 1,000.00 1,118.62 1,020.53 4.52 4.31 0.86
Expenses paid during the period are equal to the fund's annualized expense
ratio, multiplied by the average account value over the period, then multiplied
by the number of days in the fund's most recent fiscal half-year and divided by
365.
It is important to note that the expense amounts shown in the table are meant to
highlight only ongoing costs of investing in the fund and do not reflect any
transactional costs, such as sales charges, redemption or exchange fees.
Therefore, the hypothetical examples provided may not help you determine the
relative total costs of owning shares of different funds. If these transactional
costs were included, your costs would have been higher.
COMPARE WITH OTHER FUNDS
Since all mutual fund companies are required to include the same hypothetical
calculations about expenses in shareholder reports, you can use this information
to compare the ongoing cost of investing in the fund with other funds. To do so,
compare the 5% hypothetical example with the 5% hypothetical examples that
appear in the shareholder reports of other funds. As you compare hypothetical
examples of other funds, it is important to note that hypothetical examples are
meant to highlight the continuing cost of investing in a fund and do not reflect
any transactional costs, such as sales charges or redemption or exchange fees.
7
[sidebar]
SUMMARY
o FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 28, 2005, THE FUND'S CLASS A
SHARES RETURNED 11.73% WITHOUT SALES CHARGE.
o THE FUND OUTPACED THE RUSSELL 1000 GROWTH INDEX AND THE S&P 500 INDEX, AS
WELL AS ITS PEER GROUP AVERAGE, THE LIPPER LARGE-CAP GROWTH FUNDS
CATEGORY.
o THE FUND TARGETED LARGE COMPANIES WITH SOLID COMPETITIVE STANDINGS, STRONG
FINANCIAL POSITIONS AND SUPERIOR SALES GROWTH. THIS STRONG STOCK SELECTION
WAS A BOON TO RELATIVE PERFORMANCE.
[UP ARROW] [UP ARROW]
RUSSELL 1000
CLASS A SHARES GROWTH INDEX
11.73% 7.67%
OBJECTIVE
Seeks capital appreciation
by investing in stocks of
companies expected to
experience long-term, above
average earnings growth.
TOTAL NET ASSETS
$737.6 million
NET ASSET VALUE PER SHARE
AS OF 02/28/05 ($)
Class A 27.76
- -----------------------------------------------
Class B 27.36
- -----------------------------------------------
Class C 27.29
- -----------------------------------------------
Class D 27.38
- -----------------------------------------------
Class G 27.40
- -----------------------------------------------
Class Z 27.95
DISTRIBUTIONS DECLARED PER SHARE
09/01/04 - 02/28/05 ($)
Class A 0.09
- -----------------------------------------------
Class B 0.03
- -----------------------------------------------
Class C 0.03
- -----------------------------------------------
Class D 0.03
- -----------------------------------------------
Class G 0.03
- -----------------------------------------------
Class Z 0.12
PORTFOLIO MANAGERS' REPORT _____________________________________________________
Columbia Growth Fund
For the six-month period ended February 28, 2005, Columbia Growth Fund's class A
shares returned 11.73% without sales charge. Fund performance was better than
both the Russell 1000 Growth Index and the S&P 500 Index, which returned 7.67%
and 9.99%, respectively. The fund also outdistanced its peer group average. The
average return of the Lipper Large Cap Growth Funds Category was 8.80% for the
period. 1 Our focus on large-cap companies with strong competitive positions,
high sustainable profits, good balance sheets and above-average sales growth
resulted in strong stock selection, especially in the consumer discretionary and
health care sectors.
CONSUMER DISCRETIONARY AND HEALTH CARE STOCKS BENEFITED FROM STRONG DEMAND
Investments in lodging and specialty retailing stocks did especially well within
the consumer discretionary sector. Lodging stocks, such as Marriott
International, rallied nicely as travel spending recovered after dropping off in
the wake of 9/11. Demand for rooms also grew at a faster rate than supply,
fueling strong pricing. Among specialty retailers, top gainers included Chico's
FAS and Coach. Chico's FAS is a women's apparel store, while Coach manufactures
and sells handbags and other accessories. Both stocks benefited from popular
product lines, strong sales, good execution and steady new store expansion.
Health care stocks also were strong contributors to performance. The fund
focused on medical device and specialty product companies, while keeping a
below-average stake in pharmaceuticals. This allocation worked well as drug
stocks remained under pressure from patent expirations and a lack of new
blockbuster products. Among the fund's best performers were Johnson & Johnson
and Caremark Rx. Johnson & Johnson benefited from acquiring cardiac stent maker
Guidant (this stock is not in the portfolio). Caremark Rx, a pharmacy benefits
manager, saw strong demand from companies working to control rising health care
costs.
CONSUMER STAPLES AND INDUSTRIALS STOCKS RALLIED AS OUTLOOK IMPROVED
Stock selection was also strong in the consumer staples and industrials sectors.
In consumer staples, Altria Group (formerly Philip Morris) saw its stock price
rise as it came closer to settling pending tobacco litigation. In industrials,
Rockwell Automation benefited from strong demand as companies both in the United
States and China sought to automate their manufacturing processes.
Ingersoll-Rand also posted sharp gains as the company improved its product line.
Although the fund's technology stocks were solid contributors to absolute
performance, they had little effect on the fund's returns relative to the
Russell 1000 Growth Index. Tech stocks were under pressure for much of the year,
as investors worried about maturing technologies, increased competition and
overstocked inventories. The sector later
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.
8
[sidebar]
TOP 5 SECTORS AS OF 02/28/05 (%)
Health care 25.7
- -----------------------------------------------
Information technology 23.0
- -----------------------------------------------
Consumer discretionary 17.9
- -----------------------------------------------
Consumer staples 12.0
- -----------------------------------------------
Industrials 9.9
TOP 10 HOLDINGS AS OF 02/28/05 (%)
Johnson & Johnson 4.2
- -----------------------------------------------
Microsoft 3.4
- -----------------------------------------------
Tyco International 2.7
- -----------------------------------------------
Intel 2.3
- -----------------------------------------------
International Business Machines 2.3
- -----------------------------------------------
Pfizer 2.1
- -----------------------------------------------
Cisco Systems 2.1
- -----------------------------------------------
Dell 2.0
- -----------------------------------------------
PepsiCo 2.0
- -----------------------------------------------
Marriott International 2.0
HOLDINGS DISCUSSED IN THIS REPORT
AS OF 02/28/05 (%)
Marriott International 2.0
- -----------------------------------------------
Chico's FAS 1.3
- -----------------------------------------------
Coach 1.1
- -----------------------------------------------
Johnson & Johnson 4.2
- -----------------------------------------------
Caremark Rx 0.8
- -----------------------------------------------
Altria Group 1.6
- -----------------------------------------------
Rockwell Automation 1.0
- -----------------------------------------------
Ingersoll-Rand 1.1
- -----------------------------------------------
Cognizant Technology Solutions 0.6
- -----------------------------------------------
Cisco Systems 2.1
- -----------------------------------------------
Goldman Sachs Group 1.4
- -----------------------------------------------
Merrill Lynch & Co. 0.6
- -----------------------------------------------
American International Group 0.9
Your fund is actively managed and the composition of its portfolio will change
over time. Information provided is calculated as a percentage of net assets.
________________________________________________________________________________
Columbia Growth Fund
rebounded, as inventory issues began to dissipate and capital spending
intentions improved. Among the fund's top performers was Cognizant Technology
Solutions, a software outsourcing company with operations in India. By contrast,
Cisco Systems hampered performance amid concerns that companies would be slow to
ramp up spending on networking equipment.
In addition, the fund's focus on financial companies with exposure to improving
capital markets contributed to its strong performance. Both Goldman Sachs Group
and Merrill Lynch & Co. benefited from a strong increase in merger & acquisition
activity and a rising stock market. American International Group, however, was a
disappointment as the whole insurance industry came under the scrutiny of
government investigators.
OUTLOOK REMAINS POSITIVE FOR LARGE-CAP STOCKS
We expect economic and profit growth to support a favorable outlook for
large-cap stocks, although both are likely to be lower than last year. If
inflation remains low, as we anticipate, longer-term interest rates are also
likely to remain low. We believe large-cap growth stocks have the potential to
benefit further from valuations that remain attractive relative to large-cap
value stocks.
Alexander S. Macmillan, CFA, has managed or
co-managed Columbia Growth Fund since 1992 and has
been with the advisor and its predecessors or
affiliate organizations since 1989.
/s/ Alexander S. Macmillan
Paul J. Berlinguet has co-managed the fund since
October 2003 and has been with the advisor and its
predecessors since 2003.
/s/ Paul J. Berlinguet
On October 13, 2004, the Board of Trustees approved a proposal to reorganize the
Columbia Growth Fund into Columbia Large Cap Growth Fund, subject to shareholder
approval and the satisfaction of certain other conditions. Shareholders approved
the merger at a shareholder meeting held on March 11, 2005. The merger was
completed at the close of business on March 18, 2005.
Equity investments are affected by stock market fluctuations that occur in
response to economic and business developments.
Investing in growth stocks incurs the possibility of losses because their prices
are sensitive to changes in current or expected earnings.
The fund may invest in foreign securities, which have special risks, including
political or economic instability and higher transaction costs; different
regulations, accounting standards, trading practices and levels of information;
and currency exchange rate fluctuations.
9
[sidebar]
PERFORMANCE OF A $10,000 INVESTMENT
03/01/95 - 02/28/05 ($)
SALES CHARGE WITHOUT WITH
- -----------------------------------------------
Class A 21,647 20,399
- -----------------------------------------------
Class B 21,190 21,190
- -----------------------------------------------
Class C 21,261 21,261
- -----------------------------------------------
Class D 21,345 21,139
- -----------------------------------------------
Class Z 21,904 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, when
redeemed, may be worth more or less than the original cost. Please visit
www.columbiafunds.com for daily and most recent month-end performance updates.
PERFORMANCE INFORMATION ________________________________________________________
Columbia International Stock Fund
VALUE OF A $10,000 INVESTMENT 03/01/95 - 02/28/05
[MOUNTAIN CHART]
CLASS A CLASS A
SHARES WITHOUT SHARES WITH MSCI AC WORLD MSCI EAFE
SALES CHARGE SALES CHARGE EX US INDEX INDEX
-------------- ------------ ------------ ------------
03/1995 10000 9425 10000 10000
10381 9784 10565 10624
10611 10001 10977 11023
10487 9884 10928 10892
10443 9843 10777 10702
11135 10494 11388 11368
10949 10319 10993 10935
11215 10570 11181 11148
11090 10453 10882 10849
11312 10662 11138 11150
11587 10921 11579 11600
11738 11063 11738 11647
11738 11063 11738 11687
12172 11472 11957 11934
12633 11907 12319 12282
12837 12098 12135 12056
13068 12316 12196 12123
12393 11681 11792 11769
12588 11864 11861 11795
12908 12165 12155 12109
12837 12099 12034 11985
13333 12567 12498 12462
13509 12733 12353 12302
13500 12724 12126 11871
13881 13083 12348 12066
14017 13211 12322 12109
14347 13522 12427 12173
15175 14303 13193 12966
15896 14982 13922 13680
16373 15432 14203 13902
15106 14237 13085 12863
16139 15211 13793 13584
15019 14155 12618 12539
14951 14092 12460 12411
15059 14193 12603 12519
15179 14307 12980 13091
15796 14888 13846 13932
16334 15395 14325 14361
16741 15779 14428 14474
16972 15996 14166 14404
17026 16047 14113 14513
17125 16141 14247 14660
14794 13944 12238 12843
14015 13209 11980 12449
15147 14276 13236 13746
16203 15271 13947 14450
16992 16015 14426 15019
17509 16502 14410 14974
17080 16098 14088 14618
17520 16513 14768 15227
18060 17021 15506 15844
17422 16421 14778 15028
18313 17260 15457 15614
19060 17964 15819 16078
19477 18357 15874 16137
19884 18741 15981 16300
20962 19757 16575 16912
23601 22244 17238 17499
26835 25292 18883 19070
25552 24083 17858 17859
27246 25679 18340 18339
26799 25258 19029 19051
24575 23162 17967 18049
22670 21367 17507 17608
23611 22253 18253 18297
22530 21234 17532 17530
23212 21878 17750 17683
21778 20526 16765 16822
20802 19606 16231 16425
19862 18720 15504 15809
20762 19568 16033 16370
20650 19462 16273 16362
19539 18415 14985 15135
18188 17143 13925 14125
19313 18202 14872 15107
19017 17924 14462 14574
18399 17341 13908 13978
17795 16772 13598 13723
17457 16454 13260 13376
15729 14825 11853 12021
16165 15235 12185 12329
16545 15593 12742 12784
16927 15954 12907 12859
16180 15250 12354 12176
16294 15357 12443 12261
17053 16072 13104 12984
17138 16153 13205 13010
17308 16313 13349 13175
16844 15875 12772 12651
15395 14510 11527 11402
15255 14378 11528 11376
13693 12906 10306 10154
14190 13374 10858 10699
14643 13801 11381 11185
14205 13388 11014 10809
13569 12788 10628 10358
13371 12602 10412 10121
13272 12509 10210 9923
14190 13374 11194 10895
14968 14107 11907 11555
15236 14360 12237 11835
15645 14746 12563 12122
16027 15106 12937 12414
16465 15518 13299 12796
17439 16437 14161 13593
17609 16596 14470 13895
18781 17701 15574 14980
19163 18061 15824 15191
19402 18286 16226 15542
19586 18460 16327 15629
19063 17967 15819 15276
18852 17768 15870 15328
19204 18100 16214 15664
18455 17394 15742 15155
18428 17368 15868 15221
18752 17674 16379 15619
19360 18246 16949 16151
20575 19392 18125 17254
21287 20063 18903 18012
20779 19584 18578 17682
02/2005 21647 20399 19494 18448
The graph and table do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares. The Morgan
Stanley Capital International (MSCI) All Country (AC) World ex US Index is an
unmanaged index of global stock market performance that includes developed and
emerging markets but excludes the US. The Morgan Stanley Capital International
(MSCI) Europe, Australasia, Far East (EAFE) Index is a free float-adjusted
market capitalization index that is designed to measure developed market equity
performance, excluding the US and Canada. Unlike the fund, indices are not
investments, do not incur fees or expenses and are not professionally managed.
It is not possible to invest directly in an index. Securities in the fund may
not match those in an index.
AVERAGE ANNUAL TOTAL RETURN AS OF 02/28/05 (%)
SHARE CLASS A B C D Z
- ----------------------------------------------------------------------------------------------------------------
INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 10/01/92
- ----------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- ----------------------------------------------------------------------------------------------------------------
6-month (cumulative) 17.51 10.75 17.10 12.10 17.03 16.03 17.04 16.04 17.61
- ----------------------------------------------------------------------------------------------------------------
1-year 11.61 5.19 10.78 5.78 10.82 9.82 10.86 9.86 11.98
- ----------------------------------------------------------------------------------------------------------------
5-year -4.50 -5.62 -4.90 -5.22 -4.84 -4.84 -4.76 -4.95 -4.27
- ----------------------------------------------------------------------------------------------------------------
10-year 8.03 7.39 7.80 7.80 7.83 7.83 7.88 7.77 8.16
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/04 (%)
- ----------------------------------------------------------------------------------------------------------------
SHARE CLASS A B C D Z
- ----------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- ----------------------------------------------------------------------------------------------------------------
6-month (cumulative) 10.84 4.47 10.47 5.47 10.43 9.43 10.47 9.47 10.98
- ----------------------------------------------------------------------------------------------------------------
1-year 13.34 6.83 12.49 7.49 12.79 11.79 12.81 11.81 13.97
- ----------------------------------------------------------------------------------------------------------------
5-year -4.53 -5.65 -4.91 -5.23 -4.84 -4.84 -4.77 -4.96 -4.30
- ----------------------------------------------------------------------------------------------------------------
10-year 6.80 6.17 6.59 6.59 6.63 6.63 6.67 6.56 6.93
THE "WITH SALES CHARGE" RETURNS INCLUDE THE MAXIMUM INITIAL SALES CHARGE OF
5.75% FOR CLASS A SHARES, MAXIMUM CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR
CLASS B SHARES AND 1.00% FOR CLASS C AND D SHARES FOR THE FIRST YEAR ONLY. THE
"WITHOUT SALES CHARGE" RETURNS DO NOT INCLUDE THE EFFECT OF SALES CHARGES. IF
THEY HAD, RETURNS WOULD HAVE BEEN LOWER
ALL RESULTS SHOWN ASSUME REINVESTMENT OF DISTRIBUTIONS. CLASS Z SHARES ARE SOLD
AT NET ASSET VALUE WITH NO RULE 12B-1 FEES. PERFORMANCE FOR DIFFERENT SHARE
CLASSES WILL VARY BASED ON DIFFERENCES IN SALES CHARGES AND FEES ASSOCIATED WITH
EACH CLASS.
Effective October 13, 2003, class D shares were closed to all new investors and
new accounts. Existing class D shareholders will be able to make additional
purchases at any time. In addition, the class D initial sales charge of 1.00% is
waived after October 13, 2003.
Performance results reflect any voluntary waivers or reimbursement of fund
expenses by the advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower.
Classes A, B and D (newer class shares) share performance information includes
returns of the fund's class Z shares (the oldest existing fund class) for
periods prior to the inception of the newer class shares. The returns for Class
C include the returns of Class B prior to 10/13/03, the date on which class C
was initially offered by the fund. The returns shown for Class C also include
the performance of Class Z prior to the inception of Class B (11/01/02). Class Z
share returns are not restated to reflect any expense differential (e.g., Rule
12b-1 fees) between class Z shares and the newer class shares. Had the expense
differential been reflected, the returns for the periods prior to the inception
of classes A, B, C and D would have been lower.
10
[sidebar]
ESTIMATING YOUR ACTUAL EXPENSES
To estimate the expenses that you paid over the period, first you will need your
account balance at the end of the period:
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA FUNDS
SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT
WWW.COLUMBIAFUNDS.COM OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM THEIR BROKERAGE
FIRM, CONTACT YOUR BROKERAGE FIRM TO OBTAIN YOUR ACCOUNT BALANCE
1. DIVIDE YOUR ENDING ACCOUNT BALANCE BY $1,000. FOR EXAMPLE, IF AN ACCOUNT
BALANCE WAS $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6
2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE
PERIOD," LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER
IS IN THE COLUMN LABELED "ACTUAL." MULTIPLY THIS NUMBER BY THE RESULT FROM
STEP 1. YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR
ACCOUNT DURING THE PERIOD
UNDERSTANDING YOUR EXPENSES ____________________________________________________
Columbia International Stock Fund
As a fund shareholder, you incur two types of costs. There are transaction
costs, which generally include sales charges on purchases and may include
redemption or exchange fees. There are also ongoing costs, which generally
include investment advisory fees, Rule 12b-1 fees, and other fund expenses. The
information on this page is intended to help you understand your ongoing costs
of investing in the fund and to compare these costs with the ongoing costs of
investing in other mutual funds.
ANALYZING YOUR FUND'S EXPENSES BY SHARE CLASS
To illustrate these ongoing costs, we have provided an example and calculated
the expenses paid by investors in each share class during the reporting period.
The information in the following table is based on an initial investment of
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
09/01/04 - 02/28/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
- ------------------------------------------------------------------------------------------------------------------------
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
- ------------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,000.00 1,175.10 1,018.45 6.90 6.41 1.28
- ------------------------------------------------------------------------------------------------------------------------
Class B 1,000.00 1,000.00 1,170.98 1,014.73 10.93 10.14 2.03
- ------------------------------------------------------------------------------------------------------------------------
Class C 1,000.00 1,000.00 1,171.08 1,014.73 10.93 10.14 2.03
- ------------------------------------------------------------------------------------------------------------------------
Class D 1,000.00 1,000.00 1,170.39 1,014.73 10.92 10.14 2.03
- ------------------------------------------------------------------------------------------------------------------------
Class Z 1,000.00 1,000.00 1,176.88 1,019.69 5.56 5.16 1.03
Expenses paid during the period are equal to the fund's annualized expense
ratio, multiplied by the average account value over the period, then multiplied
by the number of days in the fund's most recent fiscal half-year and divided by
365.
Had the Investment Advisor and the Fund's Transfer Agent not waived a portion of
expenses, total return would have been reduced.
It is important to note that the expense amounts shown in the table are meant to
highlight only ongoing costs of investing in the fund and do not reflect any
transactional costs, such as sales charges, redemption or exchange fees.
Therefore, the hypothetical examples provided may not help you determine the
relative total costs of owning shares of different funds. If these transactional
costs were included, your costs would have been higher.
COMPARE WITH OTHER FUNDS
Since all mutual fund companies are required to include the same hypothetical
calculations about expenses in shareholder reports, you can use this information
to compare the ongoing cost of investing in the fund with other funds. To do so,
compare the 5% hypothetical example with the 5% hypothetical examples that
appear in the shareholder reports of other funds. As you compare hypothetical
examples of other funds, it is important to note that hypothetical examples are
meant to highlight the continuing cost of investing in a fund and do not reflect
any transactional costs, such as sales charges or redemption or exchange fees.
11
[sidebar]
SUMMARY
o FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 28, 2005, THE FUND'S CLASS A
SHARES RETURNED 17.51% WITHOUT SALES CHARGE.
o THE FUND'S EMPHASIS ON THE ENERGY SECTOR, A HIGHER COMMITMENT TO EUROPEAN
STOCKS AND STOCK SELECTION IN EUROPEAN MARKETS ALL CONTRIBUTED TO THE
FUND'S DOUBLE-DIGIT RETURN.
o STOCK SELECTION IN JAPAN AND THE UNITED KINGDOM (UK) WERE THE PRINCIPAL
REASONS THE FUND FELL BEHIND ITS BENCHMARKS.
[UP ARROW] [UP ARROW]
MSCI ALL COUNTRY
CLASS A SHARES WORLD EX US INDEX
17.51% 22.84%
OBJECTIVE
Seeks long-term capital
appreciation by investing in
stocks issued by companies from
at least three countries outside
the United States.
TOTAL NET ASSETS
$678.0 million
NET ASSET VALUE PER SHARE
AS OF 02/28/05 ($)
Class A 15.32
- -----------------------------------------------
Class B 15.00
- -----------------------------------------------
Class C 15.05
- -----------------------------------------------
Class D 15.11
- -----------------------------------------------
Class Z 15.38
DISTRIBUTIONS DECLARED PER SHARE
09/01/04 - 02/28/05 ($)
Class A 0.00
- -----------------------------------------------
Class B 0.00
- -----------------------------------------------
Class C 0.00
- -----------------------------------------------
Class D 0.00
- -----------------------------------------------
Class Z 0.07
PORTFOLIO MANAGERS' REPORT _____________________________________________________
Columbia International Stock Fund
For the six-month period ended February 28, 2005, Columbia International Stock
Fund class A shares returned 17.51% without sales charge. The fund's benchmarks,
the MSCI All Country World ex US Index and the MSCI EAFE Index, returned 22.84%
and 21.18%, respectively. Its peer group, the Lipper International Multi-Cap
Growth Fund Category, had an average return of 20.07% for the same period. 1
Strong performance from the energy sector and from European stocks helped boost
the fund's return. Stock selection in Japan and the United Kingdom (UK) were the
principal reasons the fund fell behind its benchmarks.
ENERGY STOCKS BOOSTED THE FUND'S RETURN
In the past three years, an increase in the rate of global economic growth,
supply disruptions and an increase in Chinese imports contributed to higher oil
prices. We positioned the fund to take advantage of these factors by emphasizing
oil and gas stocks as well as oil service stocks in the portfolio. This decision
was rewarded as the price of oil remained strong and energy stocks soared during
the period. Canada's EnCana Corp., the largest oil and gas exploration company
in North America, was the fund's top performer.
HIGHER STAKE IN EUROPEAN STOCKS AIDED PERFORMANCE
A decision to raise the fund's commitment to European stocks with long-term
growth prospects also aided performance. We focused on smaller markets that were
growing faster than Europe as a whole and that were attractively priced relative
to their earnings potential compared to larger markets. In particular, the
fund's investments in Austria and Greece did well. Both countries have
fast-growing economies, relatively low interest rates and policies that are
friendly to business. When selecting stocks, we gravitated toward banks, which
have had a substantial increase in loan demand in the improving economic
environment. The National Bank of Greece SA, Erste Bank in Austria (sold in
January 2005) and the Anglo Irish Bank in Ireland made positive contributions to
performance.
The fund's strategy in Europe reflected two main themes, which influenced stock
selection across the portfolio. In general, we favored companies that we
believed were likely to increase dividend payouts and/or benefit from increased
capital spending. With these themes in mind, we increased investment in the
industrials sector, a strategy that added the most value over the period. Two
companies were particularly strong--Atlas Copco AB in Sweden, an electric tool
manufacturer, and Vinci SA in France, a construction company. Telecommunications
companies also reflected these themes. We added Belgacom SA, Belgium's
telecommunications company, which benefited from cost-cutting and improved
operations. In addition, we believe that the company has the potential to
increase its dividend.
1 Lipper Inc., a widely respected data provider in the industry, calculates
an average total return for mutual funds with similar investment
objectives as those of the fund.
12
[sidebar]
TOP 5 COUNTRIES AS OF 02/28/05 (%)
United Kingdom 22.0
- -----------------------------------------------
Japan 21.3
- -----------------------------------------------
France 8.8
- -----------------------------------------------
Germany 6.4
- -----------------------------------------------
Netherlands 5.8
TOP 10 HOLDINGS AS OF 02/28/05 (%)
BP 2.2
- -----------------------------------------------
Nestle SA 1.8
- -----------------------------------------------
Vodafone Group 1.8
- -----------------------------------------------
GlaxoSmithKline 1.7
- -----------------------------------------------
Total SA 1.6
- -----------------------------------------------
EnCana 1.6
- -----------------------------------------------
ENI S.p.A 1.5
- -----------------------------------------------
Reckitt Benckiser 1.4
- -----------------------------------------------
HSBC Holdings 1.4
- -----------------------------------------------
Randstad Holdings NV 1.3
HOLDINGS DISCUSSED IN THIS REPORT
AS OF 02/28/05 (%)
EnCana 1.6
- -----------------------------------------------
National Bank of Greece SA 0.7
- -----------------------------------------------
Anglo Irish Bank 0.8
- -----------------------------------------------
Atlas Copco AB 1.2
- -----------------------------------------------
Vinci SA 1.1
- -----------------------------------------------
Belgacom SA 0.6
- -----------------------------------------------
AstraZeneca 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 International Stock Fund
JAPANESE AND UK INVESTMENTS DISAPPOINT
During the period, we boosted the fund's investment in Japan on the belief that
its economy was headed for a strong recovery after more than 10 years of
recession and deflation. However, inflation did not return as fast as forecasts
suggested, consumer spending did not rebound at the pace we originally
anticipated and consumer-related Japanese stocks declined. Telecommunications
stocks in Japan also detracted from performance.
Pharmaceutical companies in the United Kingdom also held back results.
AstraZeneca lost traction when the FDA postponed approval of IRESSA, a cancer
drug. In addition, prescription trends were disappointing for Crestor,
AstraZeneca's cholesterol-lowering drug. However, the stock remains in the
portfolio because we continue to believe that it has long-term potential.
LOOKING AHEAD
Going forward we will continue to seek companies that exhibit one or more of the
following characteristics: 1) are likely to increase dividends and/or share
buybacks, 2) could benefit from increased capital expenditures, and 3) stand to
benefit from improved employment growth, such as retail stocks. In general, we
plan to focus on large-cap stocks which we believe have the potential to
outperform small-caps. However, any change in the economic or market climate
could lead us to change our focus.
[Photo of Penelope L. Burgess] Penelope L. Burgess has co-managed the
fund since July 2004 and has been with the
advisor or its predecessors or affiliate
organizations since 1993.
/s/ Penelope L. Burgess
[Photo of Deborah F. Snee] Deborah F. Snee has co-managed the fund
since July 2004 and has been with the
advisor or its predecessors or affiliate
organizations since 1999.
/s/ Deborah F. Snee
Equity investments are affected by stock market fluctuations that occur in
response to economic and business developments.
International investing may involve certain risks, including foreign taxation,
currency fluctuations, risks associated with possible differences in financial
standards and other monetary and political risks.
13
[sidebar]
PERFORMANCE OF A $10,000 INVESTMENT
03/01/95 - 02/28/05 ($)
SALES CHARGE WITHOUT WITH
- -----------------------------------------------
Class A 24,208 22,814
- -----------------------------------------------
Class B 23,785 23,785
- -----------------------------------------------
Class C 23,832 23,832
- -----------------------------------------------
Class D 23,809 23,575
- -----------------------------------------------
Class G 23,715 23,715
- -----------------------------------------------
Class T 24,255 22,858
- -----------------------------------------------
Class Z 24,455 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, when
redeemed, may be worth more or less than the original cost. Please visit
www.columbiafunds.com for daily and most recent month-end performance updates.
PERFORMANCE INFORMATION ________________________________________________________
Columbia Mid Cap Growth Fund
VALUE OF A $10,000 INVESTMENT 03/01/95 - 02/28/05
[MOUNTAIN CHART]
CLASS A CLASS A
SHARES WITHOUT SHARES WITH RUSSELL MIDCAP RUSSELL MIDCAP
SALES CHARGE SALES CHARGE GROWTH INDEX INDEX
-------------- ------------ -------------- --------------
03/1995 10000 9425 10000 10000
10266 9676 10397 10286
10298 9706 10484 10441
10418 9819 10742 10785
11082 10445 11231 11147
11923 11237 11937 11689
12122 11425 12069 11868
12315 11607 12338 12136
11803 11124 12026 11864
12440 11725 12563 12454
12648 11920 12570 12526
12553 11831 12792 12790
13113 12359 13276 13091
13431 12659 13380 13281
14605 13765 14027 13657
15019 14155 14313 13863
14158 13344 13881 13655
12772 12038 12804 12810
13551 12772 13496 13419
14075 13266 14353 14082
13680 12893 14185 14195
14441 13610 15021 15059
14300 13478 14768 14906
14639 13798 15421 15463
14410 13581 15082 15440
13711 12922 14230 14784
13609 12827 14578 15152
14884 14029 15885 16258
15367 14483 16325 16790
16232 15298 17887 18190
16182 15251 17712 17992
16966 15991 18608 19019
15979 15060 17676 18279
16145 15217 17861 18714
16110 15183 18095 19231
15679 14778 17769 18869
16681 15722 19440 20345
17739 16719 20254 21309
17684 16667 20530 21362
17222 16232 19686 20702
17501 16495 20243 20990
16308 15370 19377 19989
14264 13444 15678 16791
15259 14381 16863 17877
15895 14981 18104 19096
16626 15670 19326 19999
18791 17710 21328 21171
18409 17351 21968 21135
16891 15919 20894 20432
17369 16370 22058 21071
17933 16902 23063 22628
17981 16948 22766 22563
19238 18132 24355 23359
18736 17659 23581 22717
18386 17329 23335 22128
18640 17568 23137 21349
19762 18625 24925 22361
22204 20928 27508 23005
25617 24144 32272 25030
26053 24555 32266 24201
33483 31558 39048 26063
32944 31049 39087 27556
29725 28016 35291 26253
28099 26483 32719 25557
31215 29420 36190 26313
29982 28258 33899 26019
34177 32212 39011 28511
33459 31535 37104 28103
31124 29334 34566 27671
26614 25084 27055 25180
29166 27489 28480 27097
28662 27014 30107 27533
25440 23977 24898 25856
23252 21915 21335 24253
25475 24010 24892 26327
25060 23619 24775 26816
24599 23184 24787 26564
23701 22338 23117 25804
22355 21069 21441 24811
19829 18688 17897 21819
20546 19365 19777 22683
22229 20951 21907 24584
23045 21720 22740 25572
22268 20988 22001 25418
21268 20046 20753 25149
22525 21230 22337 26658
21949 20687 21155 26141
21595 20354 20525 25845
20103 18947 18259 24114
18563 17496 16484 21760
18129 17086 16426 21880
17329 16333 15122 19860
17811 16787 16294 20863
18317 17264 17570 22311
17365 16366 16509 21432
17365 16366 16347 20999
16965 15990 16205 20722
17070 16089 16506 20927
17929 16898 17630 22447
19469 18350 19326 24500
19786 18649 19603 24748
20210 19048 20302 25565
21269 20046 21421 26674
20129 18971 21006 26341
21751 20501 22699 28350
22352 21066 23307 29147
22550 21254 23561 30022
23033 21709 24339 30895
22962 21641 24747 31559
22727 21421 24700 31566
21634 20390 24004 30407
21915 20655 24570 31161
22422 21132 24961 32024
20424 19250 23309 30625
19977 18828 23022 30757
20824 19626 23881 31756
21671 20425 24690 32633
23000 21677 25964 34620
24106 22720 27208 36095
23672 22311 26479 35200
02/2005 24208 22814 27146 36283
The graph and table do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares. The Russell
Midcap Growth Index is an unmanaged index that measures the performance of those
Russell Midcap companies with higher price-to-book ratios and higher forecasted
growth values. The Russell Midcap Index is an unmanaged index that measures the
performance of the 800 smallest companies in the Russell 1000 Index, as ranked
by total market capitalization. Unlike the fund, indices are not investments, do
not incur fees or expenses and are not professionally managed. It is not
possible to invest directly in an index. Securities in the fund may not match
those in an index.
AVERAGE ANNUAL TOTAL RETURN AS OF 02/28/05 (%)
- ------------------------------------------------------------------------------------------------------------------------------------
SHARE CLASS A B C D G T Z
- ------------------------------------------------------------------------------------------------------------------------------------
INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 11/01/02 11/01/02 11/20/85
- ------------------------------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- ------------------------------------------------------------------------------------------------------------------------------------
6-month (cumulative) 21.19 14.22 20.78 15.78 20.73 19.73 20.75 19.75 20.78 15.78 21.14 14.17 21.35
- ------------------------------------------------------------------------------------------------------------------------------------
1-year 5.43 -0.63 4.60 -0.40 4.65 3.65 4.65 3.65 4.45 -0.55 5.36 -0.67 5.74
- ------------------------------------------------------------------------------------------------------------------------------------
5-year -6.28 -7.39 -6.61 -6.88 -6.57 -6.57 -6.59 -6.78 -6.67 -7.08 -6.24 -7.35 -6.09
- ------------------------------------------------------------------------------------------------------------------------------------
10-year 9.24 8.60 9.05 9.05 9.07 9.07 9.06 8.95 9.02 9.02 9.26 8.62 9.35
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/04 (%)
- ------------------------------------------------------------------------------------------------------------------------------------
SHARE CLASS A B C D G T Z
- ------------------------------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- ------------------------------------------------------------------------------------------------------------------------------------
6-month (cumulative) 7.50 1.32 7.12 2.12 7.10 6.10 7.11 6.11 7.14 2.14 7.48 1.28 7.64
- ------------------------------------------------------------------------------------------------------------------------------------
1-year 6.88 0.74 6.05 1.05 6.14 5.14 6.15 5.15 5.84 0.84 6.87 0.74 7.31
- ------------------------------------------------------------------------------------------------------------------------------------
5-year -1.21 -2.38 -1.53 -1.82 -1.49 -1.49 -1.51 -1.71 -1.59 -2.02 -1.17 -2.34 -1.02
- ------------------------------------------------------------------------------------------------------------------------------------
10-Year 9.46 8.81 9.28 9.28 9.30 9.30 9.29 9.18 9.25 9.25 9.48 8.83 9.56
THE "WITH SALES CHARGE" RETURNS INCLUDE THE MAXIMUM INITIAL SALES CHARGE OF
5.75% FOR CLASS A AND T SHARES, MAXIMUM CONTINGENT DEFERRED SALES CHARGE OF
5.00% FOR CLASS B AND G SHARES AND 1.00% FOR CLASS C AND D SHARES FOR THE FIRST
YEAR ONLY. THE "WITHOUT SALES CHARGE" RETURNS DO NOT INCLUDE THE EFFECT OF SALES
CHARGES. IF THEY HAD, RETURNS WOULD HAVE BEEN LOWER.
ALL RESULTS SHOWN ASSUME REINVESTMENT OF DISTRIBUTIONS. CLASS Z SHARES ARE SOLD
AT NET ASSET VALUE WITH NO RULE 12B-1 FEES. PERFORMANCE FOR DIFFERENT SHARE
CLASSES WILL VARY BASED ON DIFFERENCES IN SALES CHARGES AND FEES ASSOCIATED WITH
EACH CLASS.
Effective October 13, 2003, class D shares were closed to all new investors and
new accounts. Existing class D shareholders will be able to make additional
purchases at any time. In addition, the class D initial sales charge of 1.00% is
waived after October 13, 2003.
Performance results reflect any voluntary waivers or reimbursement of fund
expenses by the advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower.
Classes A, B, D, G and T (newer class shares) share performance information
includes returns of the fund's class Z shares (the oldest existing fund class)
for periods prior to the inception of the newer class shares. The returns for
class C include the returns of class B prior to 10/13/03, the date on which
class C was initially offered by the fund. The returns shown for class C also
include the performance of class Z prior to the inception of class B (11/01/02).
Class Z share returns are not restated to reflect any expense differential
(e.g., Rule 12b-1 fees) between class Z shares and the newer class shares. Had
the expense differential been reflected, the returns for the periods prior to
the inception of classes A, B, C, D, G and T would have been lower.
14
[sidebar]
ESTIMATING YOUR ACTUAL EXPENSES
To estimate the expenses that you paid over the period, first you will need your
account balance at the end of the period:
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA FUNDS
SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT
WWW.COLUMBIAFUNDS.COM OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM THEIR BROKERAGE
FIRM, CONTACT YOUR BROKERAGE FIRM TO OBTAIN YOUR ACCOUNT BALANCE
1. DIVIDE YOUR ENDING ACCOUNT BALANCE BY $1,000. FOR EXAMPLE, IF AN ACCOUNT
BALANCE WAS $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6
2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE
PERIOD," LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER
IS IN THE COLUMN LABELED "ACTUAL." MULTIPLY THIS NUMBER BY THE RESULT FROM
STEP 1. YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR
ACCOUNT DURING THE PERIOD
UNDERSTANDING YOUR EXPENSES ____________________________________________________
Columbia Mid Cap Growth Fund
As a fund shareholder, you incur two types of costs. There are transaction
costs, which generally include sales charges on purchases and may include
redemption or exchange fees. There are also ongoing costs, which generally
include investment advisory fees, Rule 12b-1 fees, and other fund expenses. The
information on this page is intended to help you understand your ongoing costs
of investing in the fund and to compare these costs with the ongoing costs of
investing in other mutual funds.
ANALYZING YOUR FUND'S EXPENSES BY SHARE CLASS
To illustrate these ongoing costs, we have provided an example and calculated
the expenses paid by investors in each share class during the reporting period.
The information in the following table is based on an initial investment of
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
09/01/04 - 02/28/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
- ------------------------------------------------------------------------------------------------------------------------
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
- ------------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,000.00 1,211.89 1,018.50 6.97 6.36 1.27
- ------------------------------------------------------------------------------------------------------------------------
Class B 1,000.00 1,000.00 1,207.78 1,014.78 11.06 10.09 2.02
- ------------------------------------------------------------------------------------------------------------------------
Class C 1,000.00 1,000.00 1,207.28 1,014.78 11.06 10.09 2.02
- ------------------------------------------------------------------------------------------------------------------------
Class D 1,000.00 1,000.00 1,207.48 1,014.78 11.06 10.09 2.02
- ------------------------------------------------------------------------------------------------------------------------
Class G 1,000.00 1,000.00 1,207.78 1,015.03 10.78 9.84 1.97
- ------------------------------------------------------------------------------------------------------------------------
Class T 1,000.00 1,000.00 1,211.40 1,018.25 7.24 6.61 1.32
- ------------------------------------------------------------------------------------------------------------------------
Class Z 1,000.00 1,000.00 1,213.48 1,019.74 5.60 5.11 1.02
Expenses paid during the period are equal to the fund's annualized expense
ratio, multiplied by the average account value over the period, then multiplied
by the number of days in the fund's most recent fiscal half-year and divided by
365.
Had the Fund's Transfer Agent not waived a portion of expenses, total return
would have been reduced.
It is important to note that the expense amounts shown in the table are meant to
highlight only ongoing costs of investing in the fund and do not reflect any
transactional costs, such as sales charges, redemption or exchange fees.
Therefore, the hypothetical examples provided may not help you determine the
relative total costs of owning shares of different funds. If these transactional
costs were included, your costs would have been higher.
COMPARE WITH OTHER FUNDS
Since all mutual fund companies are required to include the same hypothetical
calculations about expenses in shareholder reports, you can use this information
to compare the ongoing cost of investing in the fund with other funds. To do so,
compare the 5% hypothetical example with the 5% hypothetical examples that
appear in the shareholder reports of other funds. As you compare hypothetical
examples of other funds, it is important to note that hypothetical examples are
meant to highlight the continuing cost of investing in a fund and do not reflect
any transactional costs, such as sales charges or redemption or exchange fees.
15
[sidebar]
SUMMARY
o FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 28, 2005, THE FUND'S CLASS A
SHARES RETURNED 21.19% WITHOUT SALES CHARGE.
o THE FUND OUTPERFORMED THE RUSSELL MIDCAP GROWTH INDEX AND THE RUSSELL
MIDCAP INDEX, AS WELL AS THE AVERAGE OF ITS PEER GROUP, THE LIPPER MID-CAP
GROWTH FUNDS CATEGORY.
o STRONG STOCK SELECTION IN THE INFORMATION TECHNOLOGY AND MATERIALS SECTORS
DROVE THE FUND'S OUTPERFORMANCE.
[UP ARROW] [UP ARROW] [UP ARROW]
RUSSELL RUSSELL
CLASS A MIDCAP MIDCAP
SHARES GROWTH INDEX INDEX
21.19% 17.94% 17.98%
OBJECTIVE
Seeks significant capital
appreciation by investing in
stocks of companies with a
market capitalization, at the
time of initial purchase, equal to
or less than the largest stock in
the Russell Midcap Index.
TOTAL NET ASSETS
$864.9 million
NET ASSET VALUE PER SHARE
AS OF 02/28/05 ($)
Class A 20.59
- -----------------------------------------------
Class B 20.23
- -----------------------------------------------
Class C 20.27
- -----------------------------------------------
Class D 20.25
- -----------------------------------------------
Class G 20.17
- -----------------------------------------------
Class T 20.63
- -----------------------------------------------
Class Z 20.80
PORTFOLIO MANAGERS' REPORT _____________________________________________________
Columbia Mid Cap Growth Fund
For the six-month period ended February 28, 2005, Columbia Mid Cap Growth Fund
class A shares returned 21.19% without sales charge. The fund outperformed both
the Russell Midcap Growth Index and the Russell Midcap Index, which returned
17.94% and 17.98%, respectively, during the same period. The fund also outpaced
its peer group, the Lipper Mid-Cap Growth Funds Category, which averaged a
return of 16.91%. 1 Strong stock selection, particularly in the information
technology and materials sectors, helped the fund outperform its benchmark and
peers.
SEMICONDUCTOR STOCKS LED TECH PERFORMANCE
The fund's new management team, in place since June 2004, restructured holdings
in key sectors in an effort to reduce portfolio risk. A good example is the
information technology sector, where the team eliminated commodity-type
businesses in favor of those with greater intellectual property content, as
reflected in companies with higher gross margins. As a result, the portfolio was
well positioned for the market rally in the fourth quarter of 2004. Certain
semiconductor stocks performed exceptionally well. Marvell Technology Group
benefited from a new product introduction, which allowed it to attack new
markets. NVIDIA benefited from the introduction of a new graphics chip, and
Advanced Micro Devices gained market share, resulting in increased revenues and
higher gross margins.
Although the fund's technology holdings outperformed, we believe there is room
for improvement within the sector. We have expanded coverage of internet-related
stocks, where we missed some opportunities and misjudged others.
STOCK SELECTION IN MATERIALS AND ENERGY AIDED PERFORMANCE
Good stock selection in the materials and energy sectors also contributed to the
portfolio's strong performance. Growing demand for and limited supply of raw
materials drove commodity prices higher. Potash Corp. of Saskatchewan benefited
as demand for potash, a fertilizer, increased. Peabody Energy's stock price
advanced as coal grew increasingly attractive amid rising oil prices. Among
energy stocks, oil and gas companies benefited from higher prices and
significantly outperformed energy service companies. Although the fund had more
exposure to energy service names than its benchmark, good stock selection
compensated. National-Oilwell and Nabors Industries gained 52% and 30%,
respectively. If commodity prices remain strong, we believe that exploration
companies will increase spending and energy service companies should benefit.
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.
16
[sidebar]
TOP 5 SECTORS AS OF 02/28/05 (%)
Information technology 25.0
- -----------------------------------------------
Consumer discretionary 20.7
- -----------------------------------------------
Health care 15.9
- -----------------------------------------------
Industrials 10.9
- -----------------------------------------------
Materials 7.0
TOP 10 HOLDINGS AS OF 02/28/05 (%)
Tempur-Pedic International 2.8
- -----------------------------------------------
Potash Corp. of Saskatchewan 2.1
- -----------------------------------------------
XM Satellite Radio Holdings 1.8
- -----------------------------------------------
Urban Outfitters 1.8
- -----------------------------------------------
Kinetic Concepts 1.8
- -----------------------------------------------
Marvell Technology Group 1.7
- -----------------------------------------------
Medicis Pharmaceutical 1.7
- -----------------------------------------------
Manpower 1.6
- -----------------------------------------------
Inco 1.5
- -----------------------------------------------
DaVita 1.4
HOLDINGS DISCUSSED IN THIS REPORT
AS OF 02/28/05 (%)
Marvell Technology Group 1.7
- -----------------------------------------------
NVIDIA 1.0
- -----------------------------------------------
Advanced Micro Devices 1.1
- -----------------------------------------------
Potash Corp. of Saskatchewan 2.1
- -----------------------------------------------
Peabody Energy 0.9
- -----------------------------------------------
National-Oilwell 0.7
- -----------------------------------------------
Nabors Industries 1.2
- -----------------------------------------------
Chico's FAS 1.3
- -----------------------------------------------
Coach 0.9
- -----------------------------------------------
Western Wireless 0.3
- -----------------------------------------------
Kinetic Concepts 1.8
- -----------------------------------------------
DaVita 1.4
- -----------------------------------------------
Accredo Health 0.8
Your fund is actively managed and the composition of its portfolio will change
over time. Information provided is calculated as a percentage of net assets.
________________________________________________________________________________
Columbia Mid Cap Growth Fund
PORTFOLIO GAINS WERE WIDESPREAD
The fund registered attractive gains from stocks in a wide range of sectors and
industries. Consumer discretionary stocks, such as retailers Chico's FAS and
Coach, benefited from enhanced consumer confidence. Telecommunications services
stocks also outperformed, led by Western Wireless, up 57% on news of its
acquisition by ALLTEL. In health care, Kinetic Concepts benefited from increased
market penetration, DaVita advanced on the news of its purchase of Gambro
Healthcare's US dialysis business and Accredo Health's stock price soared on the
news of its acquisition by Medco Health Services.
FINANCIAL STOCKS DETRACTED FROM PERFORMANCE
We maintained low exposure to the financial sector amid concerns about the
effects of a rising interest rate environment. Although the fund's financial
holdings advanced, they were not as strong as the sector overall. Performance
was hurt by not owning some of the best performing stocks in the period, such as
Moody's and Legg Mason. We plan to maintain our low exposure to the financial
sector because we do not expect the Federal Reserve (the Fed) to alter its
current interest rate policy.
MONITORING THE ECONOMY AND MARKETS
We have positioned the portfolio to reflect an economy that is growing
at a healthy pace. We are bullish on the energy sector and see continued
strength in the materials and industrials sectors. Ongoing job creation, the
unprecedented liquidity of corporate balance sheets and a Fed that appears to be
controlling inflation are supportive of our outlook. Because of the portfolio's
pro-cyclical positioning, however, we are monitoring the economy and markets for
signs of slowing growth.
Kenneth A. Korngiebel has co-managed the fund since
June 2004 and has been with the advisor or its
predecessors or affiliate organizations since 1996.
/s/ Kenneth A. Korngiebel
Trent E. Nevills has co-managed the fund since June
2004 and has been with the advisor or its
predecessors or affiliate organizations since 2003.
/s/ Trent E. Nevills
Equity investment is affected by stock market fluctuations that occur in
response to economic and business developments.
Investing in mid-cap stocks may present special risks, including possible
illiquidity and greater price volatility than stocks of larger, more established
companies.
17
[sidebar]
PERFORMANCE OF A $10,000 INVESTMENT
10/01/96 - 02/28/05 ($)
Class Z 24,717
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, when
redeemed, 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 02/28/05 (%)
SHARE CLASS Z
- -------------------------------------------------
INCEPTION 10/01/96
- -------------------------------------------------
6-month (cumulative) 17.82
- -------------------------------------------------
1-year 1.17
- -------------------------------------------------
5-year -4.30
- -------------------------------------------------
Life 11.36
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/04 (%)
SHARE CLASS Z
- -------------------------------------------------
6-month (cumulative) 5.57
- -------------------------------------------------
1-year 9.61
- -------------------------------------------------
5-year 1.07
- -------------------------------------------------
Life 11.95
PERFORMANCE INFORMATION ________________________________________________________
Columbia Small Cap Growth Fund
VALUE OF A $10,000 INVESTMENT 10/01/96 - 02/28/05
[MOUNTAIN CHART]
CLASS Z RUSSELL 2000 RUSSELL 2000
SHARES INDEX GROWTH INDEX
------- ------------ ------------
10/1996 10000 10000 10000
10174 9876 9628
10488 10283 9896
10762 10552 10089
11508 10763 10341
10820 10503 9716
10224 10007 9030
10191 10035 8926
11475 11151 10267
12245 11629 10615
13098 12170 11159
13753 12449 11493
15021 13360 12411
14449 12774 11665
14201 12691 11387
14432 12913 11394
13817 12709 11242
14953 13648 12235
16261 14210 12748
16435 14288 12825
15247 13518 11893
15715 13547 12014
14978 12449 11011
11771 10032 8470
12854 10817 9329
12984 11258 9816
13720 11848 10577
15109 12582 11534
15030 12749 12054
13452 11716 10951
13678 11899 11340
14077 12965 12342
14381 13155 12362
15682 13749 13013
16089 13373 12611
15726 12878 12139
16002 12880 12374
17555 12933 12690
19965 13705 14032
24048 15257 16505
24250 15011 16352
30795 17489 20157
29560 16337 18039
26350 15353 16217
24885 14458 14796
28386 15719 16708
26206 15213 15276
29285 16374 16883
28067 15892 16044
26663 15183 14741
23453 13624 12064
25451 14794 12802
25767 15565 13838
22982 14544 11941
20994 13833 10856
23433 14915 12184
23600 15282 12467
23984 15809 12807
22785 14954 11715
21092 14471 10983
17835 12523 9210
19105 13255 10096
20452 14281 10939
21839 15163 11621
21249 15005 11207
20197 14594 10482
21535 15766 11393
20856 15909 11147
20089 15203 10494
18741 14449 9605
16203 12267 8128
16459 12236 8124
15751 11358 7538
16027 11722 7919
16942 12768 8704
16038 12057 8103
15988 11723 7883
15742 11369 7672
16056 11515 7788
17346 12607 8525
18950 13960 9486
19422 14212 9669
20141 15102 10400
21273 15794 10958
20624 15502 10681
22670 16804 11604
23191 17400 11982
23142 17753 12036
24519 18524 12668
24431 18691 12649
24136 18865 12709
22926 17902 12071
23321 18187 12311
24030 18953 12721
21817 17677 11578
20981 17587 11329
22240 18412 11956
22849 18775 12246
24236 20402 13281
25368 21006 13758
24069 20130 13139
02/2005 24717 20476 13322
The graph and table do not reflect the deduction of 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
Russell 2000 Growth Index is an unmanaged index that measures the performance of
those Russell 2000 Index companies with higher price-to-book ratios and higher
forecasted growth values. Unlike the fund, indices are not investments, do not
incur fees or expenses and are not professionally managed. It is not possible to
invest directly in an index. Securities in the fund may not match those in an
index. Index performance is from October 1, 1996.
ALL RESULTS SHOWN ASSUME REINVESTMENT OF DISTRIBUTIONS. CLASS Z SHARES ARE SOLD
AT NET ASSET VALUE WITH NO RULE 12B-1 FEES.
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.
18
[sidebar]
ESTIMATING YOUR ACTUAL EXPENSES
To estimate the expenses that you paid over the period, first you will need your
account balance at the end of the period:
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA FUNDS
SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT
WWW.COLUMBIAFUNDS.COM OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM THEIR BROKERAGE
FIRM, CONTACT YOUR BROKERAGE FIRM TO OBTAIN YOUR ACCOUNT BALANCE
1. DIVIDE YOUR ENDING ACCOUNT BALANCE BY $1,000. FOR EXAMPLE, IF AN ACCOUNT
BALANCE WAS $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6
2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE
PERIOD," LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER
IS IN THE COLUMN LABELED "ACTUAL." MULTIPLY THIS NUMBER BY THE RESULT FROM
STEP 1. YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR
ACCOUNT DURING THE PERIOD
UNDERSTANDING YOUR EXPENSES ____________________________________________________
Columbia Small Cap Growth Fund
As a fund shareholder, you incur two types of costs. There are transaction
costs, which generally include sales charges on purchases and may include
redemption or exchange fees. There are also ongoing costs, which generally
include investment advisory fees and other fund expenses. The information on
this page is intended to help you understand your ongoing costs of investing in
the fund and to compare these costs with the ongoing costs of investing in other
mutual funds.
ANALYZING YOUR FUND'S EXPENSES BY SHARE CLASS
To illustrate these ongoing costs, we have provided an example and calculated
the expenses paid by investors in each share class during the reporting period.
The information in the following table is based on an initial investment of
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
09/01/04 - 02/28/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
- --------------------------------------------------------------------------------------------------------------------------
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
- --------------------------------------------------------------------------------------------------------------------------
Class Z 1,000.00 1,000.00 1,178.22 1,018.84 6.48 6.01 1.20
Expenses paid during the period are equal to the fund's annualized expense
ratio, multiplied by the average account value over the period, then multiplied
by the number of days in the fund's most recent fiscal half-year and divided by
365.
It is important to note that the expense amounts shown in the table are meant to
highlight only ongoing costs of investing in the fund and do not reflect any
transactional costs, such as sales charges, redemption or exchange fees.
Therefore, the hypothetical examples provided may not help you determine the
relative total costs of owning shares of different funds. If these transactional
costs were included, your costs would have been higher.
COMPARE WITH OTHER FUNDS
Since all mutual fund companies are required to include the same hypothetical
calculations about expenses in shareholder reports, you can use this information
to compare the ongoing cost of investing in the fund with other funds. To do so,
compare the 5% hypothetical example with the 5% hypothetical examples that
appear in the shareholder reports of other funds. As you compare hypothetical
examples of other funds, it is important to note that hypothetical examples are
meant to highlight the continuing cost of investing in a fund and do not reflect
any transactional costs, such as sales charges or redemption or exchange fees.
19
[sidebar]
SUMMARY
o FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 28, 2005, THE FUND'S CLASS Z
SHARES RETURNED 17.82%.
o THE FUND OUTPERFORMED ITS BENCHMARKS. ITS RETURN WAS SLIGHTLY LOWER THAN
THE AVERAGE FOR ITS PEER GROUP, THE LIPPER SMALL-CAP GROWTH FUNDS
CATEGORY.
o STOCK SELECTION IN THE INFORMATION TECHNOLOGY AND INDUSTRIALS SECTORS
ENHANCED THE FUND'S RETURNS, AS DID DECISIONS TO LIMIT EXPOSURE TO THE
FINANCIALS SECTOR AND TO EMPHASIZE THE ENERGY SECTOR.
[UP ARROW] [UP ARROW] [UP ARROW]
CLASS Z RUSSELL 2000 RUSSELL 2000
SHARES GROWTH INDEX INDEX
17.82% 17.56% 16.40%
OBJECTIVE
Seeks capital appreciation by
investing in stocks of companies
with a market capitalization,
at the time of initial purchase,
equal to or less than the
largest stock in the
S&P SmallCap 600 Index.
TOTAL NET ASSETS
$261.9 million
NET ASSET VALUE PER SHARE
AS OF 02/28/05 ($)
- ------------------------------------------------
Class Z 25.12
- ------------------------------------------------
PORTFOLIO MANAGERS' REPORT _____________________________________________________
Columbia Small Cap Growth Fund
For the six-month period ended February 28, 2005, Columbia Small Cap Growth Fund
class Z shares returned 17.82%. That was higher than the return of the Russell
2000 Growth Index, which was 17.56%, and the Russell 2000 Index, which was
16.40%, during the same period. The fund trailed its peer group, the Lipper
Small-Cap Growth Funds Category, which averaged a return of 18.17%. 1 Strong
stock selection in the information technology and industrials sectors
contributed to the fund's competitive performance. Decisions to emphasize energy
and to limit exposure to financials further enhanced results. Stock selection in
the materials sector, however, detracted from relative performance.
RESTRUCTURING TECHNOLOGY HOLDINGS IMPROVED PERFORMANCE
A new management team took over the fund in June 2004. Early efforts to
restructure the fund's technology holdings resulted in improved performance from
the sector relative to its benchmark. We eliminated commodity-type businesses in
favor of those with greater intellectual property content, as reflected in
companies with higher gross margins. As a result of this emphasis on higher
quality names, the fund was well positioned for the market rally in the fourth
quarter of 2004. Communications equipment stocks, where the fund had significant
exposure, led performance. Ixia advanced 127%, F5 Networks gained 124% and
Packeteer rose 58%.
INDUSTRIALS ENHANCED RESULTS, WHILE MATERIALS UNDERPERFORMED
Solid stock selection in the industrial sector also made a positive contribution
to the fund's performance. United Defense Industries saw its stock price move
higher on news of its acquisition by BAE Systems within the defense industry.
Alternate energy sources, such as coal, were more attractive because of high oil
prices. As a result, Joy Global, which produces coal mining equipment, benefited
from customers' needs to replace outdated machinery and from countries ramping
up mining activity, particularly China. With an increased demand for raw
materials in developing markets, we are evaluating other opportunities among
companies in the industrials and materials sectors poised to benefit along the
supply chain. We have maintained a relatively neutral exposure to the materials
sector, which underperformed during the period. We sold our interest in GrafTech
International, which appeared to be incapable of taking advantage of good
end-market conditions.
CONSTRUCTIVE OUTLOOK FOR ENERGY SERVICE INDUSTRY
Energy stocks generated robust returns for the period. Oil and gas companies
benefited from higher prices and outperformed all other industries. In this
environment, XTO Energy, Quiksilver Resources and
1 Lipper Inc., a widely respected data provider in the industry, calculates
an average total return for mutual funds with similar investment
objectives as those of the fund.
20
[sidebar]
TOP 5 SECTORS AS OF 02/28/05 (%)
Information technology 29.3
- -----------------------------------------------
Health care 21.0
- -----------------------------------------------
Industrials 16.1
- -----------------------------------------------
Consumer discretionary 12.7
- -----------------------------------------------
Energy 7.8
TOP 10 HOLDINGS AS OF 02/28/05 (%)
Tempur-Pedic International 2.6
- -----------------------------------------------
United Defense Industries 2.2
- -----------------------------------------------
Renal Care Group 2.1
- -----------------------------------------------
Salix Pharmaceuticals 1.8
- -----------------------------------------------
DaVita 1.5
- -----------------------------------------------
Affiliated Managers Group 1.5
- -----------------------------------------------
Silicon Laboratories 1.5
- -----------------------------------------------
Corporate Executive Board 1.4
- -----------------------------------------------
ResMed 1.4
- -----------------------------------------------
Commercial Capital Bancorp 1.4
HOLDINGS DISCUSSED IN THIS REPORT
AS OF 02/28/05 (%)
Ixia 1.1
- -----------------------------------------------
F5 Networks 1.3
- -----------------------------------------------
Packeteer 1.3
- -----------------------------------------------
United Defense Industries 2.2
- -----------------------------------------------
Joy Global 1.2
- -----------------------------------------------
XTO Energy 0.5
- -----------------------------------------------
Quiksilver Resources 0.4
- -----------------------------------------------
Range Resources 0.5
- -----------------------------------------------
National-Oilwell 1.2
- -----------------------------------------------
CAL Dive International 0.5
- -----------------------------------------------
Key Energy Services 1.0
Your fund is actively managed and the composition of its portfolio will change
over time. Information provided is calculated as a percentage of net assets.
________________________________________________________________________________
Columbia Small Cap Growth Fund
Range Resources all made significant contributions. The fund also emphasized
energy equipment and service companies in the period, such as National-Oilwell,
CAL Dive International and Key Energy Services, which had strong gains. If
commodity prices remain healthy, we believe that exploration companies will
increase spending, and energy service companies should benefit. One energy stock
that did disappoint was Input/Output. The company reported lower-than-expected
earnings in the fourth quarter of 2004, after having previously disappointed
investors. We eliminated our position in the stock during the period.
LOW EXPOSURE TO FINANCIALS, CONSUMER DISCRETIONARY STOCKS AIDED PERFORMANCE
We maintained low exposure to the financial sector amid concerns about the
effects of rising interest rates. This under-representation, combined with good
stock selection, also aided performance. We plan to maintain our low exposure to
the financial sector because we do not expect the Fed to alter its current
interest rate policy. The fund also had less exposure than the index to consumer
discretionary stocks, where the portfolio's holdings underperformed. We sold
particularly disappointing names, including PC Mall, Aeropostale and Radio One.
PRO-CYCLICAL POSITIONING REQUIRES VIGILANCE
We believe that the economy will continue to grow at a healthy pace and have
positioned the portfolio accordingly. We are bullish on the energy sector and
see continued strength in the materials and industrials sectors. Ongoing job
creation, a build up of cash on corporate balance sheets and a Federal Reserve
Board that appears to be controlling inflation are supportive of our outlook.
Because of the portfolio's pro-cyclical positioning, however, we are monitoring
the economy and markets for signs of slowing growth.
Kenneth A. Korngiebel has co-managed the fund since
June 2004 and has been with the advisor or its
predecessors or affiliate organizations since 1996.
/s/ Kenneth A. Korngiebel
Trent E. Nevills has co-managed the fund since June
2004 and has been with the advisor or its
predecessors or affiliate organizations since 2003.
/s/ Trent E. Nevills
Equity investments are affected by stock market fluctuations that occur in
response to economic and business developments.
Investments in small-cap stocks may be subject to greater volatility and price
fluctuations because they may be thinly traded and less liquid than investments
in larger companies.
21
[sidebar]
PERFORMANCE OF A $10,000 INVESTMENT
03/01/95 - 02/28/05 ($)
SALES CHARGE WITHOUT WITH
- -----------------------------------------------
Class A 41,183 38,801
- -----------------------------------------------
Class B 40,529 40,529
- -----------------------------------------------
Class C 40,512 40,512
- -----------------------------------------------
Class D 40,541 40,119
- -----------------------------------------------
Class Z 41,539 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, when
redeemed, may be worth more or less than the original cost. Please visit
www.columbiafunds.com for daily and most recent month-end performance updates.
PERFORMANCE INFORMATION ________________________________________________________
Columbia Real Estate Equity Fund
VALUE OF A $10,000 INVESTMENT 03/01/95 - 02/28/05
[MOUNTAIN CHART]
CLASS A CLASS A
SHARES WITHOUT SHARES WITH NAREIT
SALES CHARGE SALES CHARGE INDEX
-------------- ------------ ------
03/1995 10000 9425 10000
10070 9491 9960
9919 9349 9957
10409 9810 10380
10670 10057 10545
10833 10211 10727
10906 10279 10855
11179 10536 11041
10931 10302 10805
11022 10389 10903
12015 11325 11498
12243 11539 11688
12347 11637 11825
12271 11566 11760
12261 11556 11820
12540 11819 12125
12837 12099 12282
12856 12117 12374
13479 12703 12862
14043 13236 13086
14319 13495 13474
15056 14190 14089
16617 15662 15553
16946 15972 15727
17050 16069 15695
17283 16289 15662
16692 15732 15232
17221 16231 15680
18001 16966 16442
18945 17855 16950
18755 17677 16909
20432 19257 18385
19733 18598 17889
20230 19067 18275
20728 19536 18706
20651 19464 18607
20265 19100 18291
20948 19744 18618
20039 18887 18011
19883 18739 17885
19827 18687 17764
18659 17586 16611
17290 16295 15043
18187 17141 15894
17880 16852 15600
18243 17194 15829
18168 17123 15431
17844 16818 15108
17718 16699 14753
17613 16600 14687
19070 17973 16080
19642 18512 16434
19198 18094 16168
18490 17426 15654
18478 17416 15455
17652 16637 14868
17294 16300 14502
17151 16164 14266
17720 16701 14718
17793 16770 14766
17355 16357 14591
18256 17206 15071
19351 18238 16083
19512 18390 16241
20237 19074 16658
21980 20716 18114
21109 19896 17379
21981 20717 17932
20935 19731 17155
21553 20313 17375
22833 21520 18598
22616 21315 18791
22297 21015 18491
21913 20653 18670
22687 21383 19116
23177 21844 19579
24183 22792 20726
23755 22389 20314
24508 23099 21057
22961 21641 20183
22183 20908 19606
23461 22112 20684
24066 22682 21189
24213 22821 21231
24692 23273 21641
25626 24152 22940
25813 24329 23135
26324 24810 23447
26700 25165 24087
25317 23861 22827
25059 23618 22782
24069 22685 21907
23354 22011 20853
24548 23136 21835
24778 23354 21997
24109 22723 21357
24387 22984 21709
24809 23382 22143
25843 24357 23118
27102 25543 24514
27695 26103 25048
29061 27390 26388
29639 27935 26531
30407 28658 27433
30847 29074 27930
32143 30295 29147
33432 31510 30167
34485 32502 31471
35351 33318 32021
36952 34827 33792
32348 30488 28865
34279 32308 30923
35462 33423 31829
35316 33285 31935
37467 35313 34470
37883 35705 34449
39334 37072 36292
41332 38955 37857
43717 41203 39693
40451 38125 36359
02/2005 41183 38801 37470
The graph and table do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares. The National
Association of Real Estate Investment Trusts (NAREIT) Index is an unmanaged
index that tracks performance of all publicly traded equity REIT. Unlike the
fund, indices are not investments, do not incur fees or expenses and are not
professionally managed. It is not possible to invest directly in an index.
Securities in the fund may not match those in an index.
AVERAGE ANNUAL TOTAL RETURN AS OF 02/28/05 (%)
SHARE CLASS A B C D Z
- ------------------------------------------------------------------------------------------------------------
INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 04/01/94
- ------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- ------------------------------------------------------------------------------------------------------------
6-month (cumulative) 9.88 3.56 9.51 4.58 9.51 8.53 9.51 8.52 10.05
- ------------------------------------------------------------------------------------------------------------
1-year 16.46 9.76 15.65 10.65 15.61 14.61 15.61 14.61 16.73
- ------------------------------------------------------------------------------------------------------------
5-year 18.86 17.46 18.48 18.28 18.47 18.47 18.49 18.26 19.07
- ------------------------------------------------------------------------------------------------------------
10-year 15.21 14.52 15.02 15.02 15.02 15.02 15.02 14.90 15.30
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/04 (%)
SHARE CLASS A B C D Z
- ------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- ------------------------------------------------------------------------------------------------------------
6-month (cumulative) 23.27 16.19 22.79 17.79 22.81 21.81 22.80 21.80 23.42
- ------------------------------------------------------------------------------------------------------------
1-year 30.76 23.24 29.78 24.78 29.74 28.74 29.78 28.78 31.08
- ------------------------------------------------------------------------------------------------------------
5-year 19.80 18.38 19.43 19.23 19.42 19.42 19.44 19.19 19.98
- ------------------------------------------------------------------------------------------------------------
10-year 15.58 14.89 15.40 15.40 15.40 15.40 15.41 15.29 15.67
THE "WITH SALES CHARGE" RETURNS INCLUDE THE MAXIMUM INITIAL SALES CHARGE OF
5.75% FOR CLASS A SHARES, MAXIMUM CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR
CLASS B SHARES AND 1.00%FOR CLASS C AND D SHARES FOR THE FIRST YEAR ONLY. THE
"WITHOUT SALES CHARGE" RETURNS DO NOT INCLUDE THE EFFECT OF SALES CHARGES. IF
THEY HAD, RETURNS WOULD BE LOWER.
ALL RESULTS SHOWN ASSUME REINVESTMENT OF DISTRIBUTIONS. CLASS Z SHARES ARE SOLD
AT NET ASSET VALUE WITH NO RULE 12B-1 FEES. PERFORMANCE FOR DIFFERENT SHARE
CLASSES WILL VARY BASED ON DIFFERENCES IN SALES CHARGES AND FEES ASSOCIATED WITH
EACH CLASS.
Effective October 13, 2003, class D shares were closed to all new investors and
new accounts. Existing class D shareholders will be able to make additional
purchases at any time. In addition, class D initial sales charge of 1.00% is
waived after October 13, 2003.
Performance results reflect any voluntary waivers or reimbursement of fund
expenses by the advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower.
Classes A, B and D (newer class shares) share performance information includes
returns of the fund's class Z shares (the oldest existing fund class) for
periods prior to the inception of the newer class shares. The returns for class
C include the returns of class B prior to 10/13/03, the date on which class C
was initially offered by the fund. The returns shown for class C also include
the performance of class Z prior to the inception of class B (11/01/02). Class Z
share returns are not restated to reflect any expense differential (e.g., Rule
12b-1 fees) between class Z shares and the newer class shares. Had the expense
differential been reflected, the returns for the periods prior to the inception
of classes A, B, C and D would have been lower.
22
[sidebar]
ESTIMATING YOUR ACTUAL EXPENSES
To estimate the expenses that you paid over the period, first you will need your
account balance at the end of the period:
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA FUNDS
SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT
WWW.COLUMBIAFUNDS.COM OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM THEIR BROKERAGE
FIRM, CONTACT YOUR BROKERAGE FIRM TO OBTAIN YOUR ACCOUNT BALANCE
1. DIVIDE YOUR ENDING ACCOUNT BALANCE BY $1,000. FOR EXAMPLE, IF AN ACCOUNT
BALANCE WAS $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6
2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE
PERIOD," LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER
IS IN THE COLUMN LABELED "ACTUAL." MULTIPLY THIS NUMBER BY THE RESULT FROM
STEP 1. YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR
ACCOUNT DURING THE PERIOD
UNDERSTANDING YOUR EXPENSES ____________________________________________________
Columbia Real Estate Equity Fund
As a fund shareholder, you incur two types of costs. There are transaction
costs, which generally include sales charges on purchases and may include
redemption or exchange fees. There are also ongoing costs, which generally
include investment advisory fees, Rule 12b-1 fees, and other fund expenses. The
information on this page is intended to help you understand your ongoing costs
of investing in the fund and to compare these costs with the ongoing costs of
investing in other mutual funds.
ANALYZING YOUR FUND'S EXPENSES BY SHARE CLASS
To illustrate these ongoing costs, we have provided an example and calculated
the expenses paid by investors in each share class during the reporting period.
The information in the following table is based on an initial investment of
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
09/01/04 - 02/28/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
- ------------------------------------------------------------------------------------------------------------------
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
- ------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,000.00 1,098.78 1,018.89 6.19 5.96 1.19
- ------------------------------------------------------------------------------------------------------------------
Class B 1,000.00 1,000.00 1,095.11 1,015.17 10.08 9.69 1.94
- ------------------------------------------------------------------------------------------------------------------
Class C 1,000.00 1,000.00 1,095.11 1,015.17 10.08 9.69 1.94
- ------------------------------------------------------------------------------------------------------------------
Class D 1,000.00 1,000.00 1,095.11 1,015.17 10.08 9.69 1.94
- ------------------------------------------------------------------------------------------------------------------
Class Z 1,000.00 1,000.00 1,100.52 1,020.13 4.90 4.71 0.94
Expenses paid during the period are equal to the fund's annualized expense
ratio, multiplied by the average account value over the period, then multiplied
by the number of days in the fund's most recent fiscal half-year and divided by
365.
It is important to note that the expense amounts shown in the table are meant to
highlight only ongoing costs of investing in the fund and do not reflect any
transactional costs, such as sales charges, redemption or exchange fees.
Therefore, the hypothetical examples provided may not help you determine the
relative total costs of owning shares of different funds. If these transactional
costs were included, your costs would have been higher.
COMPARE WITH OTHER FUNDS
Since all mutual fund companies are required to include the same hypothetical
calculations about expenses in shareholder reports, you can use this information
to compare the ongoing cost of investing in the fund with other funds. To do so,
compare the 5% hypothetical example with the 5% hypothetical examples that
appear in the shareholder reports of other funds. As you compare hypothetical
examples of other funds, it is important to note that hypothetical examples are
meant to highlight the continuing cost of investing in a fund and do not reflect
any transactional costs, such as sales charges or redemption or exchange fees.
23
[sidebar]
SUMMARY
o FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 28, 2005, THE FUND'S CLASS A
SHARES RETURNED 9.88% WITHOUT SALES CHARGE.
o THE FUND'S STRONG SIX-MONTH RETURN RELATIVE TO THE BENCHMARK INDEX IS
ATTRIBUTABLE TO ITS SUBSTANTIAL HOLDINGS IN REAL ESTATE'S LODGING SECTOR,
WHICH CONTINUED TO OUTPERFORM OTHER AREAS DURING THE PERIOD.
o DEFENSIVE HOLDINGS IN PAPER AND FOREST PRODUCTS COMPANIES CONTINUED TO
HOLD THE FUND BACK RELATIVE TO ITS PEER GROUP.
[UP ARROW] [UP ARROW]
CLASS A NAREIT
SHARES INDEX
9.88% 8.69%
OBJECTIVE
Seeks capital appreciation
and above-average income by
investing in stocks of companies
principally engaged in the real
estate industry, including real
estate investment trusts (REITs).
TOTAL NET ASSETS
$873.8 million
NET ASSET VALUE PER SHARE
AS OF 02/28/05 ($)
Class A 25.22
- -----------------------------------------------
Class B 25.24
- -----------------------------------------------
Class C 25.22
- -----------------------------------------------
Class D 25.23
- -----------------------------------------------
Class Z 25.24
DISTRIBUTIONS DECLARED PER SHARE
09/01/04 - 02/28/05 ($)
Class A 2.98
- -----------------------------------------------
Class B 2.88
- -----------------------------------------------
Class C 2.88
- -----------------------------------------------
Class D 2.88
- -----------------------------------------------
Class Z 3.02
PORTFOLIO MANAGER'S REPORT _____________________________________________________
Columbia Real Estate Equity Fund
For the six-month period ended February 28, 2005, Columbia Real Estate Equity
Fund class A shares returned 9.88% without sales charge. The fund outperformed
the benchmark NAREIT Index, a common measure of real estate securities'
performance, which returned 8.69%. The fund fell behind the average of the
Lipper Real Estate Funds Category, which was 10.21%. 1 The fund's strong
performance relative to the index was primarily due to a strong showing by
lodging stocks, which represented a large share of the fund's portfolio. We
believe its modest underperformance relative to the peer group was caused by its
holdings in the paper and forest product sectors.
ECONOMIC GROWTH INCREASES DEMAND FOR SPACE
Real estate investment trust (REIT) stocks continued to benefit from relatively
low interest rates and slowly increasing demand for space due to steady economic
growth. Because of this favorable scenario, investors continued to commit funds
to the REIT market and drove up REIT stock prices during 2004. Following this
strong performance, January and February saw profit taking in the groups.
Nevertheless, certain sectors of the real estate and REIT markets continued to
shine--particularly lodging stocks--and the fund's ample holdings in that sector
drove its outperformance relative to its benchmark. We believe that the fund's
defensive posture, represented by an allocation to paper and forest product
sectors, caused it to modestly underperform its peer group averages for the
period.
LODGING AND OFFICE SECTORS AID PERFORMANCE
Positive travel trends continued to fuel returns in the lodging industry.
Relative to the index, the fund held more than a triple weight allocation in the
sector (18% versus 5% of the index at 02/28/05), which contributed significantly
to its gains. Several of the fund's lodging holdings were standout performers,
including Starwood Hotels & Resorts Worldwide, Marriott International, Hilton
Hotels and Host Marriott.
During the period, we increased the fund's exposure to the office
industry as employment figures improved and many office REITs became
attractively valued. The fund's office holdings with Manhattan real estate
exposure were strong performers, including Brookfield Properties, a real estate
operating company (REOC), SL Green Realty and Boston Properties. Appreciating
real estate valuations in Florida's Panhandle drove the performance of the
fund's single largest return contributor, St. Joe, a REOC and the largest
private land holder in Northwestern Florida.
1 Lipper Inc., a widely respected data provider in the industry, calculates
an average total return for mutual funds with similar investment
objectives as those of the fund.
24
[sidebar]
TOP 5 SECTORS AS OF 02/28/05 (%)
Financials 74.1
- -----------------------------------------------
Consumer discretionary 17.0
- -----------------------------------------------
Materials 5.0
- -----------------------------------------------
Consumer staples 1.1
- -----------------------------------------------
Telecommunication services 0.5
TOP 10 HOLDINGS AS OF 02/28/05 (%)
Hilton Hotels 5.6
- -----------------------------------------------
Simon Property Group 5.6
- -----------------------------------------------
iStar Financial 5.4
- -----------------------------------------------
Alexandria Real Estate Equities 4.4
- -----------------------------------------------
Starwood Hotels & Resorts Worldwide 4.1
- -----------------------------------------------
Equity Residential 4.1
- -----------------------------------------------
General Growth Properties 3.8
- -----------------------------------------------
Regency Centers 3.8
- -----------------------------------------------
Public Storage 3.6
- -----------------------------------------------
Host Marriot 3.6
HOLDINGS DISCUSSED IN THIS REPORT
as of 02/28/05 (%)
Starwood Hotels & Resorts Worldwide 4.1
- -----------------------------------------------
Marriott International 3.6
- -----------------------------------------------
Hilton Hotels 5.6
- -----------------------------------------------
Host Marriott 3.6
- -----------------------------------------------
Brookfield Properties 1.9
- -----------------------------------------------
SL Green Realty 1.7
- -----------------------------------------------
Boston Properties 1.6
- -----------------------------------------------
St. Joe 1.5
- -----------------------------------------------
ProLogis Trust 3.1
Your fund is actively managed and the composition of its portfolio will change
over time. Information provided is calculated as a percentage of new assets.
________________________________________________________________________________
Columbia Real Estate Equity Fund
TRIMMING INDUSTRIALS, NON-REAL ESTATE HOLDINGS
We reduced our holdings in industrial REITs to an underweight position relative
to the index (9.3% versus 10.4% for the index) based on our conviction that many
of these stocks are fairly valued relative to their business prospects. This
hurt the fund's performance marginally as these stocks continued to shine.
However, the fund's remaining industrial holdings performed well, with ProLogis
Trust leading the pack.
We also sold several of the fund's non-real estate holdings in paper and forest
products with underlying businesses that benefit most from the early part of the
economic cycle when interest rates fall and housing prices rise. We continue to
hold three stocks in this area with business focuses that benefit from later
stages of the economic cycle, such as newsprint and paper.
THREAT OF RISING RATES LOOMS
The biggest threat to REIT stocks is the potential for rising interest rates as
the economy picks up steam and the Federal Reserve continues to apply the brakes
by raising short-term rates. Because we believe that economic good news is
already priced into many of these stocks, higher interest rates could provide a
headwind for REIT stock prices. As a result, we plan to continue to hedge the
fund's REIT positions by owning other real-estate related issues, particularly
in sectors linked to a recovering economy such as lodging and late-cycle paper
and forest products. Although we were early to position the fund defensively, we
believe this posture is appropriate in the current environment.
David Jellison has managed the fund since 1994 and
has been with the advisor and its predecessors or
affiliate organizations since 1992.
/s/ David Jellison
Equity investments are affected by stock market fluctuations that occur in
response to economic and business developments.
The fund may be subject to the same types of risks associated with direct
ownership of real estate including the decline of property value due to general,
local and regional economic conditions. In addition, the fund's share price will
likely be subject to more volatility than the overall stock market because it
concentrates in real estate stocks.
25
[sidebar]
PERFORMANCE OF A $10,000 INVESTMENT
11/09/00 - 02/28/05 ($)
SALES CHARGE WITHOUT WITH
- -----------------------------------------------
Class A 7,823 7,374
Class B 7,663 7,510
Class C 7,683 7,683
Class D 7,713 7,636
Class Z 7,882 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, when
redeemed, may be worth more or less than the original cost. Please visit
www.columbiafunds.com for daily and most recent month-end performance updates.
PERFORMANCE INFORMATION ________________________________________________________
Columbia Technology Fund
VALUE OF A $10,000 INVESTMENT 11/09/00 - 02/28/05
[MOUNTAIN CHART]
MERRILL
CLASS A CLASS A LYNCH 100
SHARES WITHOUT SHARES WITH TECHNOLOGY
SALES CHARGE SALES CHARGE INDEX
-------------- ------------ ----------
11/2000 10000 9425 10000
8713 8212 7744
8622 8127 7317
9142 8617 8577
6815 6423 6096
6145 5792 5123
7365 6941 6259
7135 6725 5891
7285 6866 5912
6745 6357 5377
6095 5745 4719
4547 4285 3495
5166 4869 4158
5896 5557 4944
6126 5773 4935
6086 5736 4962
5367 5058 4289
6106 5755 4788
5376 5067 4204
5047 4757 3969
4607 4342 3321
3888 3664 2877
3858 3636 2776
3468 3269 2277
3818 3598 2774
4258 4013 3386
3788 3570 2885
3828 3608 2876
3808 3589 2901
3679 3467 2880
4138 3900 3218
4888 4607 3764
4988 4701 3746
5398 5088 3916
5907 5568 4353
5977 5634 4204
6727 6340 4711
7066 6660 4862
6977 6576 4871
7496 7065 5182
7356 6933 5085
7286 6867 4941
6916 6519 4545
7226 6811 4811
7566 7131 4955
6687 6302 4389
6497 6123 4192
7016 6613 4403
7396 6971 4723
8156 7687 5057
8456 7970 5219
7656 7216 4848
02/2005 7823 7374 4932
The graph and table do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares. The Merrill
Lynch 100 Technology Index is an equally weighted, unmanaged index of 100
leading technology stocks. Unlike the fund, indices are not investments, do not
incur fees or expenses and are not professionally managed. It is not possible to
invest directly in an index. Securities in the fund may not match those in an
index. Index performance is from November 9, 2000.
AVERAGE ANNUAL TOTAL RETURN AS OF 02/28/05 (%)
SHARE CLASS A B C D Z
- -------------------------------------------------------------------------------------------------------------
INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 11/09/00
- -------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- -------------------------------------------------------------------------------------------------------------
6-month (cumulative) 20.46 13.53 19.84 14.84 19.97 18.97 20.06 19.06 20.46
- -------------------------------------------------------------------------------------------------------------
1-year 6.39 0.27 5.36 0.36 5.63 4.63 5.61 4.61 6.62
- -------------------------------------------------------------------------------------------------------------
Life -5.55 -6.83 -6.00 -6.44 -5.94 -5.94 -5.86 -6.07 -5.38
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/04 (%)
SHARE CLASS A B C D Z
- -------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- -------------------------------------------------------------------------------------------------------------
6-month (cumulative) 11.76 5.33 11.26 6.26 11.38 10.38 11.33 10.33 11.94
- -------------------------------------------------------------------------------------------------------------
1-year 21.20 14.23 19.94 14.94 20.23 19.23 20.14 19.14 21.51
- -------------------------------------------------------------------------------------------------------------
Life -3.98 -5.34 -4.42 -4.88 -4.36 -4.36 -4.28 -4.51 -3.79
THE "WITH SALES CHARGE" RETURNS INCLUDE THE MAXIMUM INITIAL SALES CHARGE OF
5.75% FOR CLASS A SHARES, MAXIMUM CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR
CLASS B SHARES AND 1.00% FOR CLASS C AND D SHARES FOR THE FIRST YEAR ONLY. THE
"WITHOUT SALES CHARGE" RETURNS DO NOT INCLUDE THE EFFECT OF SALES CHARGES. IF
THEY HAD, RETURNS WOULD BE LOWER.
ALL RESULTS SHOWN ASSUME REINVESTMENT OF DISTRIBUTIONS. CLASS Z SHARES ARE SOLD
AT NET ASSET VALUE WITH NO RULE 12B-1 FEES. PERFORMANCE FOR DIFFERENT SHARE
CLASSES WILL VARY BASED ON DIFFERENCES IN SALES CHARGES AND FEES ASSOCIATED WITH
EACH CLASS.
Effective October 13, 2003, class D shares were closed to all new investors and
new accounts. Existing class D shareholders will be able to make additional
purchases at any time. In addition, class D initial sales charge of 1.00% is
waived after October 13, 2003.
Performance results reflect any voluntary waivers or reimbursement of fund
expenses by the advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower.
Classes A, B and D (newer class shares) share performance information includes
returns of the fund's class Z shares (the oldest existing fund class) for
periods prior to the inception of the newer class shares. The returns for class
C include the returns of class B prior to 10/13/03, the date on which class C
was initially offered by the fund. The returns shown for class C also include
the performance of class Z prior to the inception of class B (11/01/02). Class Z
share returns are not restated to reflect any expense differential (e.g., Rule
12b-1 fees) between class Z shares and the newer class shares. Had the expense
differential been reflected, the returns for the periods prior to the inception
of classes A, B, C and D would have been lower.
26
[sidebar]
ESTIMATING YOUR ACTUAL EXPENSES
To estimate the expenses that you paid over the period, first you will need your
account balance at the end of the period:
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA FUNDS
SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT
WWW.COLUMBIAFUNDS.COM OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM THEIR BROKERAGE
FIRM, CONTACT YOUR BROKERAGE FIRM TO OBTAIN YOUR ACCOUNT BALANCE
1. DIVIDE YOUR ENDING ACCOUNT BALANCE BY $1,000. FOR EXAMPLE, IF AN ACCOUNT
BALANCE WAS $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6
2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE
PERIOD," LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER
IS IN THE COLUMN LABELED "ACTUAL." MULTIPLY THIS NUMBER BY THE RESULT FROM
STEP 1. YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR
ACCOUNT DURING THE PERIOD
UNDERSTANDING YOUR EXPENSES ____________________________________________________
Columbia Technology Fund
As a fund shareholder, you incur two types of costs. There are transaction
costs, which generally include sales charges on purchases and may include
redemption or exchange fees. There are also ongoing costs, which generally
include investment advisory fees, Rule 12b-1 fees, and other fund expenses. The
information on this page is intended to help you understand your ongoing costs
of investing in the fund and to compare these costs with the ongoing costs of
investing in other mutual funds.
ANALYZING YOUR FUND'S EXPENSES BY SHARE CLASS
To illustrate these ongoing costs, we have provided an example and calculated
the expenses paid by investors in each share class during the reporting period.
The information in the following table is based on an initial investment of
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
09/01/04 - 02/28/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
- --------------------------------------------------------------------------------------------------------------------
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
- --------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,000.00 1,204.60 1,015.37 10.39 9.49 1.90
- --------------------------------------------------------------------------------------------------------------------
Class B 1,000.00 1,000.00 1,199.99 1,011.65 14.46 13.22 2.65
- --------------------------------------------------------------------------------------------------------------------
Class C 1,000.00 1,000.00 1,199.70 1,011.65 14.45 13.22 2.65
- --------------------------------------------------------------------------------------------------------------------
Class D 1,000.00 1,000.00 1,200.59 1,011.65 14.46 13.22 2.65
- --------------------------------------------------------------------------------------------------------------------
Class Z 1,000.00 1,000.00 1,206.09 1,016.61 9.03 8.25 1.65
Expenses paid during the period are equal to the fund's annualized expense
ratio, multiplied by the average account value over the period, then multiplied
by the number of days in the fund's most recent fiscal half-year and divided by
365.
Had the Investment Advisor not reimbursed a portion of expenses, total return
would have been reduced.
It is important to note that the expense amounts shown in the table are meant to
highlight only ongoing costs of investing in the fund and do not reflect any
transactional costs, such as sales charges, redemption or exchange fees.
Therefore, the hypothetical examples provided may not help you determine the
relative total costs of owning shares of different funds. If these transactional
costs were included, your costs would have been higher.
COMPARE WITH OTHER FUNDS
Since all mutual fund companies are required to include the same hypothetical
calculations about expenses in shareholder reports, you can use this information
to compare the ongoing cost of investing in the fund with other funds. To do so,
compare the 5% hypothetical example with the 5% hypothetical examples that
appear in the shareholder reports of other funds. As you compare hypothetical
examples of other funds, it is important to note that hypothetical examples are
meant to highlight the continuing cost of investing in a fund and do not reflect
any transactional costs, such as sales charges or redemption or exchange fees.
27
[sidebar]
SUMMARY
o FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 28, 2005, THE FUND'S CLASS A
SHARES RETURNED 20.46% WITHOUT SALES CHARGE.
o THE FUND OUTPERFORMED BOTH ITS BENCHMARK, THE MERRILL LYNCH 100 TECHNOLOGY
INDEX, AND THE AVERAGE OF ITS PEER GROUP, THE LIPPER SCIENCE & TECHNOLOGY
CATEGORY.
o STRONG STOCK SELECTION WITHIN THE SEMICONDUCTOR, COMMUNICATIONS EQUIPMENT
AND WIRELESS INDUSTRIES ACCOUNTED FOR ITS STRONG PERFORMANCE.
[UP ARROW] [UP ARROW]
MERRILL LYNCH 100
CLASS A SHARES TECHNOLOGY INDEX
20.46% 17.67%
OBJECTIVE
Seeks capital appreciation by
investing in stocks of technology
companies that may benefit
from technological
improvements, advancements
or developments.
TOTAL NET ASSETS
$43.6 million
NET ASSET VALUE PER SHARE
AS OF 02/28/05 ($)
Class A 7.83
- -----------------------------------------------
Class B 7.67
- -----------------------------------------------
Class C 7.69
- -----------------------------------------------
Class D 7.72
- -----------------------------------------------
Class Z 7.89
PORTFOLIO MANAGERS' REPORT _____________________________________________________
Columbia Technology Fund
For the six-month period ended February 28, 2005, Columbia Technology Fund class
A shares returned 20.46% without sales charge. The fund outperformed the Merrill
Lynch 100 Technology Index, which returned 17.67% for the same period. It also
surpassed the return of the Lipper Science & Technology Category average of
13.97%. 1 The fund benefited from strong stock selection within the
semiconductor, communications equipment and wireless sectors.
STOCK SELECTION IN SEMICONDUCTORS WAS STRONG
In the first half of the reporting period, the technology sector performed in
line with normal seasonal patterns. The sector experienced a strong fourth
quarter in 2004 as consumer and corporate expenditures ramped up. It then pulled
back in early 2005 as spending cooled. In this environment, the semiconductor
industry made the greatest contribution to the fund's return, and superior stock
selection helped the fund outperform. We avoided mega-sized companies, such as
Intel and Texas Instruments, and focused on companies with specific product
strengths. NVIDIA was a top performer as it reclaimed market share of high-end
graphics and expanded into new markets with graphics for cellular phones.
Advanced Micro Devices, a leading manufacturer of microprocessors for PCs, also
benefited from the introduction of new products.
OPPORTUNITIES IN COMMUNICATIONS-RELATED STOCKS
Exceptional stock selection and an emphasis on the communications equipment
industry also contributed to the fund's strong performance. We found opportunity
in Nokia Oyj when it appeared that the market was overly pessimistic about
growth in the cell phone market. We took a significant position in Nokia Oyj and
benefited as the market readjusted its expectations. We also focused on Harris,
which provides fixed wireless and radio systems. The company benefited from
increased federal government defense spending and its shares rose. Comverse
Technology gained ground as orders rebounded in an overall recovery for wireless
usage.
We maintained the fund's exposure to international markets with investments in
wireless telecommunications service companies. Millicom International Cellular,
a long-term position in the fund, provides cellular service in developing
countries and has considerable market share in Africa, Asia and South America.
Mobile TeleSystems and VimpelCom are Russian cell phone carriers, and we took
advantage of short-term negative investor sentiment unrelated to their core
businesses. We believe international cell phone service companies continue to
offer greater upside potential than their US counterparts because of higher
growth rates and lower competition in the developing markets they serve.
STRONG PERFORMERS IN MEDIA, COMPUTERS
The fund benefited from its emphasis on the digitization of media and its
delivery to consumers and businesses. Persistent growth in the satellite radio
market drove the share price higher for XM Satellite Radio Holdings. The company
introduced new mobile products and continued to attract interest from the
automobile industry. In computers and peripherals, our position in Apple
Computer was higher than the index. The fund benefited from this decision as
investor pessimism proved unwarranted: new products at attractive price points
drove sales above expectations and Apple Computer shares soared.
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.
28
[sidebar]
TOP 5 SECTORS AS OF 02/28/05 (%)
Information technology 67.8
- -----------------------------------------------
Telecommunication services 15.0
- -----------------------------------------------
Consumer discretionary 12.7
- -----------------------------------------------
Health care 3.1
- -----------------------------------------------
Industrials 1.1
TOP 10 HOLDINGS AS OF 02/28/05 (%)
Nokia Oyj 4.9
- -----------------------------------------------
Marvell Technology Group 3.3
- -----------------------------------------------
SiRF Technology Holdings 3.3
- -----------------------------------------------
Nvidia 3.1
- -----------------------------------------------
eBay 2.9
- -----------------------------------------------
XM Satellite Radio Holdings 2.9
- -----------------------------------------------
Lions Gate Entertainment 2.4
- -----------------------------------------------
Sigmatel 2.4
- -----------------------------------------------
VeriSign 2.1
- -----------------------------------------------
Harris 2.1
HOLDINGS DISCUSSED IN THIS REPORT
AS OF 02/28/05 (%)
NVIDIA 3.1
- -----------------------------------------------
Advanced Micro Devices 0.6
- -----------------------------------------------
Nokia Oyj 4.9
- -----------------------------------------------
Harris 2.1
- -----------------------------------------------
Comverse Technology 1.2
- -----------------------------------------------
Millicom International Cellular 1.1
- -----------------------------------------------
Mobile TeleSystems 2.0
- -----------------------------------------------
VimpelCom 1.6
- -----------------------------------------------
XM Satellite Radio Holdings 2.9
- -----------------------------------------------
Apple Computer 2.0
- -----------------------------------------------
eBay 2.9
Your fund is actively managed and the composition of its portfolio will change
over time. Information provided is calculated as a percentage of net assets.
________________________________________________________________________________
Columbia Technology Fund
INTERNET, ELECTRONIC EQUIPMENT STOCKS DETRACT FROM PERFORMANCE
The fund's Internet catalog and retail stocks were caught in a widespread
sell-off after the holiday shopping season. We liquidated our investment in PC
Mall, which fell short of earnings projections. eBay also came under pressure
due to recurring issues about growth potential. We believe that these concerns
are unfounded, but we will continue to monitor the stock closely. In the
electronic equipment and instrument industry, I.D. Systems and Viisage
Technology both underperformed as they got caught up in the turmoil surrounding
technology identity systems and homeland security. We sold both positions.
INVESTMENT THEMES GUIDE STOCK SELECTION
We have positioned the fund's portfolio around investment themes that indicate
compelling growth opportunities. For example, we have focused on companies that
stand to benefit from the adoption of technology in developing countries; cost
savings through outsourcing; and key products, especially in semiconductors. In
addition, we plan to continue to evaluate investments in wireless
telecommunications based on growing trends in wireless voice and data
communication.
Wayne Collette has co-managed the Columbia
Technology Fund since June 2002 and has been with
the advisor or its predecessors or affiliate
organizations since 2001.
/s/ Wayne Collette
Theodore Wendell has been with the advisor or its
predecessors or affiliate organizations since 2000.
Except for the period between June and August 2004,
he has co-managed the fund since June 2002.
/s/ Theodore Wendell
Trent Nevills has co-managed the fund since August
2003 and has been with the advisor or its
predecessors or affiliate organizations since 2003.
/s/ Trent Nevills
Equity investments are affected by stock market fluctuations that occur in
response to economic and business developments. In addition, the fund's share
price will likely be subject to more volatility than the overall stock market
because it concentrates in technology stocks.
International investing may involve certain risks, including foreign taxation,
currency fluctuations, risks associated with possible differences in financial
standards and other monetary and political risks.
Some of the countries the fund invests in are considered emerging economies,
which means there may be greater risks associated with investing there than in
more developed countries. In addition, concentration of investments in a single
region may result in greater volatility.
29
[sidebar]
PERFORMANCE OF A $10,000 INVESTMENT
11/09/00 - 02/28/05 ($)
SALES CHARGE WITHOUT WITH
- -----------------------------------------------
Class A 21,108 19,897
Class B 20,721 20,521
Class C 20,721 20,721
Class D 20,711 20,506
Class Z 21,242 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, when
redeemed, may be worth more or less than the original cost. Please visit
www.columbiafunds.com for daily and most recent month-end performance updates.
PERFORMANCE INFORMATION ________________________________________________________
Columbia Strategic Investor Fund
VALUE OF A $10,000 INVESTMENT 11/09/00 - 02/28/05
[MOUNTIAN CHART]
CLASS A CLASS A
SHARES WITHOUT SHARES WITH RUSSELL 3000
SALES CHARGE SALES CHARGE VALUE INDEX S&P 500 INDEX
-------------- ------------ ------------- -------------
11/00 10000 9425 10000 10000
9790 9227 9730 9399
11224 10579 10253 9445
12274 11568 10308 9780
12254 11549 10040 8888
11984 11295 9699 8325
12934 12190 10172 8972
13743 12953 10403 9032
13963 13160 10218 8812
13884 13085 10182 8726
13664 12879 9799 8180
12325 11616 9082 7519
12736 12003 9024 7662
13896 13097 9558 8250
14568 13731 9808 8323
14599 13759 9747 8201
14719 13872 9766 8043
15591 14695 10248 8345
15521 14629 9951 7840
15541 14648 9970 7782
14900 14043 9426 7228
13636 12852 8510 6665
13676 12889 8567 6708
12311 11603 7639 5979
12894 12153 8172 6505
14141 13328 8696 6888
13310 12544 8318 6484
12945 12201 8115 6314
12681 11952 7895 6219
12620 11894 7913 6279
13827 13032 8613 6797
14982 14121 9192 7155
15125 14255 9310 7247
15601 14704 9472 7374
16169 15239 9634 7518
16037 15114 9539 7438
16928 15955 10137 7859
17294 16299 10294 7928
18117 17075 10908 8344
18503 17439 11114 8497
18941 17852 11351 8615
19002 17909 11271 8485
18666 17592 10971 8352
18675 17601 11084 8467
19224 18119 11369 8631
18582 17514 11178 8345
18694 17619 11334 8379
19151 18050 11532 8469
19274 18166 11722 8599
20301 19134 12353 8947
20912 19710 12756 9251
20448 19272 12506 9025
02/05 21108 19897 12909 9215
The graph and table do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares. The Russell
3000 Value Index is an unmanaged index that measures the performance of those
Russell 3000 Index companies with lower price-to-book ratios and lower
forecasted growth values. The stocks in this index are also members of either
the Russell 1000 Value or the Russell 2000 Value indexes. The Standard & Poor's
(S&P) 500 Index is an unmanaged index that tracks the performance of 500 widely
held, large-capitalization U.S. stocks. Unlike the fund, indices are not
investments, do not incur fees or expenses and are not professionally managed.
It is not possible to invest directly in an index. Securities in the fund may
not match those in an index. Index performance is from November 9, 2000.
AVERAGE ANNUAL TOTAL RETURN AS OF 02/28/05 (%)
SHARE CLASS A B C D Z
- --------------------------------------------------------------------------------------------------------------
INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 11/09/00
- --------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- --------------------------------------------------------------------------------------------------------------
6-month (cumulative) 12.91 6.42 12.52 7.52 12.45 11.45 12.46 11.46 13.08
- --------------------------------------------------------------------------------------------------------------
1-year 11.46 5.05 10.63 5.63 10.63 9.63 10.70 9.70 11.75
- --------------------------------------------------------------------------------------------------------------
Life 18.95 17.33 18.44 18.18 18.44 18.44 18.43 18.16 19.13
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/04 (%)
SHARE CLASS A B C D Z
- --------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- --------------------------------------------------------------------------------------------------------------
6-month (cumulative) 8.79 2.53 8.35 3.35 8.35 7.35 8.36 7.36 8.91
- --------------------------------------------------------------------------------------------------------------
1- year 15.45 8.81 14.53 9.53 14.59 13.59 14.61 13.61 15.70
- --------------------------------------------------------------------------------------------------------------
Life 19.49 17.80 18.99 18.71 19.00 19.00 18.97 18.69 19.65
THE "WITH SALES CHARGE" RETURNS INCLUDE THE MAXIMUM INITIAL SALES CHARGE OF
5.75% FOR CLASS A SHARES, MAXIMUM CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR
CLASS B SHARES AND 1.00% FOR CLASS C AND D SHARES FOR THE FIRST YEAR ONLY. THE
"WITHOUT SALES CHARGE" RETURNS DO NOT INCLUDE THE EFFECT OF SALES CHARGES. IF
THEY HAD, RETURNS WOULD BE LOWER.
ALL RESULTS SHOWN ASSUME REINVESTMENT OF DISTRIBUTIONS. CLASS Z SHARES ARE SOLD
AT NET ASSET VALUE WITH NO RULE 12B-1 FEES. PERFORMANCE FOR DIFFERENT SHARE
CLASSES WILL VARY BASED ON DIFFERENCES IN SALES CHARGES AND FEES ASSOCIATED WITH
EACH CLASS.
Effective October 13, 2003, class D shares were closed to all new investors and
new accounts. Existing class D shareholders will be able to make additional
purchases at any time. In addition, class D initial sales charge of 1.00% is
waived after October 13, 2003.
Performance results reflect any voluntary waivers or reimbursement of fund
expenses by the advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower.
Classes A, B and D (newer class shares) share performance information includes
returns of the fund's class Z shares (the oldest existing fund class) for
periods prior to the inception of the newer class shares. The returns for class
C include the returns of class B prior to 10/13/03, the date on which class C
was initially offered by the fund. The returns shown for class C also include
the performance of class Z prior to the inception of class B (11/01/02). Class Z
share returns are not restated to reflect any expense differential (e.g., Rule
12b-1 fees) between class Z shares and the newer class shares. Had the expense
differential been reflected, the returns for the periods prior to the inception
of classes A, B, C and D would have been lower.
30
[sidebar]
ESTIMATING YOUR ACTUAL EXPENSES
To estimate the expenses that you paid over the period, first you will need your
account balance at the end of the period:
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA FUNDS
SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT
WWW.COLUMBIAFUNDS.COM OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM THEIR BROKERAGE
FIRM, CONTACT YOUR BROKERAGE FIRM TO OBTAIN YOUR ACCOUNT BALANCE
1. DIVIDE YOUR ENDING ACCOUNT BALANCE BY $1,000. FOR EXAMPLE, IF AN ACCOUNT
BALANCE WAS $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6
2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE
PERIOD," LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER
IS IN THE COLUMN LABELED "ACTUAL." MULTIPLY THIS NUMBER BY THE RESULT FROM
STEP 1. YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR
ACCOUNT DURING THE PERIOD
UNDERSTANDING YOUR EXPENSES ____________________________________________________
Columbia Strategic Investor Fund
As a fund shareholder, you incur two types of costs. There are transaction
costs, which generally include sales charges on purchases and may include
redemption or exchange fees. There are also ongoing costs, which generally
include investment advisory fees, Rule 12b-1 fees, and other fund expenses. The
information on this page is intended to help you understand your ongoing costs
of investing in the fund and to compare these costs with the ongoing costs of
investing in other mutual funds.
ANALYZING YOUR FUND'S EXPENSES BY SHARE CLASS
To illustrate these ongoing costs, we have provided an example and calculated
the expenses paid by investors in each share class during the reporting period.
The information in the following table is based on an initial investment of
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
09/01/04 - 02/28/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
- -------------------------------------------------------------------------------------------------------------------------
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
- -------------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,000.00 1,129.08 1,018.74 6.44 6.11 1.22
- -------------------------------------------------------------------------------------------------------------------------
Class B 1,000.00 1,000.00 1,125.21 1,015.03 10.38 9.84 1.97
- -------------------------------------------------------------------------------------------------------------------------
Class C 1,000.00 1,000.00 1,124.52 1,015.03 10.38 9.84 1.97
- -------------------------------------------------------------------------------------------------------------------------
Class D 1,000.00 1,000.00 1,124.62 1,015.03 10.38 9.84 1.97
- -------------------------------------------------------------------------------------------------------------------------
Class Z 1,000.00 1,000.00 1,130.82 1,019.98 5.12 4.86 0.97
Expenses paid during the period are equal to the fund's annualized expense
ratio, multiplied by the average account value over the period, then multiplied
by the number of days in the fund's most recent fiscal half-year and divided by
365.
Had the Transfer Agent not waived a portion of expenses, total return would have
been reduced.
It is important to note that the expense amounts shown in the table are meant to
highlight only ongoing costs of investing in the fund and do not reflect any
transactional costs, such as sales charges, redemption or exchange fees.
Therefore, the hypothetical examples provided may not help you determine the
relative total costs of owning shares of different funds. If these transactional
costs were included, your costs would have been higher.
COMPARE WITH OTHER FUNDS
Since all mutual fund companies are required to include the same hypothetical
calculations about expenses in shareholder reports, you can use this information
to compare the ongoing cost of investing in the fund with other funds. To do so,
compare the 5% hypothetical example with the 5% hypothetical examples that
appear in the shareholder reports of other funds. As you compare hypothetical
examples of other funds, it is important to note that hypothetical examples are
meant to highlight the continuing cost of investing in a fund and do not reflect
any transactional costs, such as sales charges or redemption or exchange fees.
31
[sidebar]
SUMMARY
o FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 28, 2005, THE FUND'S CLASS A
SHARES RETURNED 12.91% WITHOUT SALES CHARGE.
o ALTHOUGH THE FUND TRAILED THE 13.88% RETURN OF THE RUSSELL 3000 VALUE
INDEX, FUND PERFORMANCE WAS BETTER THAN THE 9.99% RETURN OF THE S&P 500
INDEX. FUND PERFORMANCE NEARLY MATCHED THE 12.93% AVERAGE RETURN OF ITS
PEER GROUP, THE LIPPER MULTI-CAP VALUE FUND CATEGORY.
o THE DECISION TO POSITION THE FUND CONSERVATIVELY BY MAINTAINING A
SIGNIFICANT CASH POSITION HAMPERED RELATIVE PERFORMANCE COMPARED TO THE
RUSSELL INDEX AND, WE BELIEVE, COMPARED TO OUR PEERS.
[UP ARROW] [UP ARROW]
RUSSELL 3000
CLASS A SHARES VALUE INDEX
12.91% 13.88%
OBJECTIVE
Seeks long-term growth of
capital by using a "value"
approach to investing primarily
in common stocks.
TOTAL NET ASSETS
$501.1 million
NET ASSET VALUE PER SHARE
AS OF 02/28/05 ($)
Class A 20.49
- -----------------------------------------------
Class B 20.22
- -----------------------------------------------
Class C 20.22
- -----------------------------------------------
Class D 20.21
- -----------------------------------------------
Class Z 20.53
DISTRIBUTIONS DECLARED PER SHARE
09/01/04 - 02/28/05 ($)
Class A 0.25
- -----------------------------------------------
Class B 0.22
- -----------------------------------------------
Class C 0.22
- -----------------------------------------------
Class D 0.22
- -----------------------------------------------
Class Z 0.29
PORTFOLIO MANAGERS' REPORT _____________________________________________________
Columbia Strategic Investor Fund
For the six-month period ended February 28, 2005, Columbia Strategic Investor
Fund class A shares returned 12.91% without sales charge. While fund performance
was not as strong as the 13.88% return of Russell 3000 Value Index, it did
outpace the 9.99% return of S&P 500 Index. Fund performance was slightly behind
the 12.93% average return of its peer group, the Lipper Multi-Cap Value Fund
Category. 1 Our decision to position the fund conservatively by maintaining a
significant cash position hampered fund performance relative to the Russell
Index and, we believe, compared to our peers.
A BOOST FROM STRONG COMMODITY PRICES
Companies in the energy and materials sectors benefited from higher commodity
prices caused by an increase in demand, especially from emerging markets, as
well as constraints on supply. During the period, the fund benefited from
exposure to both sectors. In the energy sector, oil service and offshore
exploration companies did well as demand for their services increased:
Transocean and TGS Nopec Geophysical returned 57.9% and 72.4% respectively. One
exception to the strong performance in the energy sector was Input/Output, a
provider of seismic equipment, software and processing services to the oil and
gas industry, which suffered a revenue disappointment and returned negative 25%
for the period. We still are hopeful about the long-term prospects for the
company and maintained our position.
In the materials sector, commodity producers also made gains. Potash Corp. of
Saskatchewan experienced higher prices and demand for potash, a fertilizer, and
gained 61%. Companhia Vale do Rio Doce, a Brazilian iron ore producer, advanced
83%.
The fund also invested in the industrials sector, where among other things, we
looked for companies that stand to benefit from a favorable environment for
commodities. Caterpillar shares gained 32% and Bucyrus International, a
manufacturer of mining equipment, saw its stock price increase 65%. On the
downside, Central Parking declined in September on lower-than-anticipated
earnings, which resulted from lower revenues and higher-than-forecasted
operating costs. We continued to hold the stock as we found its valuation
attractive.
CONSUMER DISCRETIONARY STOCKS
The fund also benefited from its exposure to the consumer discretionary sector.
Retail sales at CarMax grew steadily as a result of low prices, broad selection
and a focus on customer satisfaction. This specialty retailer of used cars saw a
gain of 69% in its share price. In addition, several foreign stocks performed
exceptionally well during the period, including Nokian Renkaat Oyj, a Finnish
tire manufacturer. Nokian Renkaat Oyj experienced healthy sales and its stock
gained 73% during the past six months.
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.
32
[sidebar]
TOP 5 SECTORS AS OF 02/28/05 (%)
Financials 11.1
- -----------------------------------------------
Industrials 10.8
- -----------------------------------------------
Health care 10.7
- -----------------------------------------------
Energy 9.9
- -----------------------------------------------
Consumer discretionary 9.2
TOP 10 HOLDINGS AS OF 02/28/05 (%)
3M 1.0
- -----------------------------------------------
Transocean 1.0
- -----------------------------------------------
Nokian Renkaat Oyj 0.9
- -----------------------------------------------
Potash Corp. of Saskatchewan 0.9
- -----------------------------------------------
JPMorgan Chase 0.9
- -----------------------------------------------
Schlumberger 0.9
- -----------------------------------------------
Companhia Vale do Rio Doce 0.8
- -----------------------------------------------
Samsung Electronics 0.8
- -----------------------------------------------
Morgan Stanley 0.8
- -----------------------------------------------
Exxon Mobil 0.8
HOLDINGS DISCUSSED IN THIS REPORT
AS OF 02/28/05 (%)
Transocean 1.0
- -----------------------------------------------
TGS Nopec Geophysical 0.7
- -----------------------------------------------
Input/Output 0.3
- -----------------------------------------------
Potash Corp. of Saskatchewan 0.9
- -----------------------------------------------
Companhia Vale do Rio Doce 0.8
- -----------------------------------------------
Caterpillar 0.6
- -----------------------------------------------
Bucyrus International 0.2
- -----------------------------------------------
Central Parking 0.1
- -----------------------------------------------
CarMax 0.3
- -----------------------------------------------
Nokian Renkaat Oyj 0.9
- -----------------------------------------------
Accredo Health 0.3
- -----------------------------------------------
Biogen Idec 0.2
- -----------------------------------------------
Elan 0.1
- -----------------------------------------------
Pfizer 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 Strategic Investor Fund
MIXED RESULTS FROM HEALTH CARE
Within the health care sector, the fund experienced both substantial gains as
well as some significant disappointments. Accredo Health, a health care and
pharmaceutical services company, rose 93% during the period after news of its
acquisition by Medco Health Services. On the downside, Biogen Idec and Elan
announced a voluntary suspension in the marketing of Tysabri, a treatment for
multiple sclerosis (MS) and declined 35% and 65%, respectively, for the period.
In addition, Pfizer struggled as new risks were revealed about a popular pain
management drug and as litigation and patent expiration risks increased.
PUT CASH TO WORK GRADUALLY
Consistent with our conservative approach, we maintained a significant cash
position during this six-month period. We remain cautious about putting cash to
work too quickly as we prefer to dampen volatility in the fund amid uncertainty
about a potential slowing in the economy in fiscal 2006. As the current economic
recovery matures, we plan to seek companies that are less sensitive to economic
cycles and demonstrate the potential to maintain stable growth. In addition, we
will continue to evaluate investment opportunities overseas, considering areas
with compelling growth trends and reasonable prices.
[Photo of Robert A. Unger] Robert A. Unger, CFA, has managed or co-managed
Columbia Strategic Investor Fund since November
2000 and has been with the advisor or its
predecessors or affiliate organizations since
1984.
/s/ Robert A. Unger
[Photo of Emil A. Gjester] Emil A. Gjester has served as an assistant
portfolio manager or co-portfolio manager of the
fund since November 2002 and has been with the
advisor or its predecessors or affiliate
organizations since 1996.
/s/ Emil A. Gjester
Equity investments are affected by stock market fluctuations that occur in
response to economic and business developments.
33
[sidebar]
PERFORMANCE OF A $10,000 INVESTMENT
03/01/95 - 02/28/05 ($)
SALES CHARGE WITHOUT WITH
- -----------------------------------------------
Class A 21,587 20,350
- -----------------------------------------------
Class B 21,213 21,213
- -----------------------------------------------
Class C 21,214 21,214
- -----------------------------------------------
Class D 21,242 21,032
- -----------------------------------------------
Class Z 21,776 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, when
redeemed, may be worth more or less than the original cost. Please visit
www.columbiafunds.com for daily and most recent month-end performance updates.
PERFORMANCE INFORMATION ________________________________________________________
Columbia Balanced Fund
VALUE OF A $10,000 INVESTMENT 03/01/95 - 02/28/05
[MOUNTAIN CHART]
LEHMAN
CLASS A CLASS A BROTHERS
SHARES WITHOUT SHARES WITH S&P 500 AGGREGATE
SALES CHARGE SALES CHARGE INDEX BOND INDEX
-------------- ------------ -------- ----------
03/95 10000 9425 10000 10000
10144 9561 10295 10061
10272 9681 10598 10202
10628 10017 11022 10597
10767 10148 11277 10674
10975 10344 11652 10651
11094 10456 11681 10779
11347 10694 12174 10884
11330 10678 12130 11025
11665 10994 12662 11191
11940 11254 12907 11348
12090 11394 13346 11422
12084 11389 13470 11224
12179 11479 13599 11145
12227 11524 13799 11083
12346 11636 14155 11061
12461 11745 14209 11209
12207 11505 13581 11239
12401 11688 13867 11220
12777 12042 14648 11415
12929 12185 15052 11669
13490 12714 16190 11868
13348 12581 15870 11758
13677 12890 16862 11794
13716 12928 16993 11824
13511 12734 16295 11692
13889 13090 17267 11868
14353 13528 18319 11981
14783 13933 19140 12123
15626 14728 20663 12450
15151 14280 19506 12345
15580 14684 20575 12526
15404 14518 19888 12708
15707 14804 20809 12766
15849 14937 21167 12895
16070 15146 21402 13060
16633 15677 22945 13050
17107 16123 24119 13094
17204 16215 24363 13162
17130 16145 23944 13287
17704 16686 24916 13400
17630 16616 24652 13428
16306 15368 21087 13647
16862 15892 22439 13966
17408 16407 24263 13892
18052 17014 25734 13972
19031 17937 27216 14014
19573 18448 28353 14113
19139 18038 27472 13866
19763 18626 28571 13942
19952 18805 29676 13987
19563 18438 28976 13864
20232 19069 30584 13819
19832 18691 29630 13760
19598 18471 29485 13753
19506 18384 28677 13913
20110 18954 30492 13964
20539 19358 31111 13963
21444 20211 32943 13896
20949 19745 31290 13850
21557 20317 30698 14018
22928 21609 33701 14203
22448 21158 32686 14161
21889 20631 32016 14154
22614 21314 32807 14449
22544 21248 32295 14580
23511 22159 34301 14792
22519 21224 32490 14885
22186 20910 32353 14983
21247 20025 29804 15229
21623 20380 29950 15512
22019 20753 31013 15766
20634 19447 28185 15904
19928 18782 26398 15983
20791 19596 28449 15916
20887 19686 28639 16011
20592 19408 27943 16072
20535 19354 27670 16432
19789 18651 25937 16621
18796 17715 23842 16816
19160 18059 24297 17167
19912 18767 26161 16930
20023 18872 26391 16822
19743 18608 26006 16958
19569 18444 25504 17123
19851 18709 26463 16838
19188 18084 24859 17165
19257 18150 24675 17311
18448 17387 22918 17460
17505 16499 21133 17671
17742 16722 21270 17970
16750 15787 18958 18261
17393 16393 20626 18177
18066 17027 21841 18171
17427 16425 20559 18548
17198 16209 20021 18564
17099 16115 19720 18820
17169 16182 19912 18805
18048 17010 21552 18962
18667 17593 22688 19314
18769 17690 22978 19276
18800 17719 23383 18628
19230 18124 23839 18751
19161 18059 23586 19248
19805 18666 24921 19069
19975 18826 25140 19115
20578 19395 26458 19309
20770 19575 26945 19464
21112 19898 27319 19674
20945 19741 26907 19822
20388 19216 26484 19306
20560 19377 26847 19229
20819 19622 27368 19339
20127 18970 26462 19530
20188 19027 26568 19903
20384 19212 26855 19957
20618 19433 27266 20125
21210 19990 28370 19964
21884 20626 29335 20147
21453 20220 28619 20274
02/05 21587 20350 29212 20158
The graph and table do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares. The Lehman
Brothers Aggregate Bond Index is a market value-weighted index that tracks the
daily price, coupon, pay-downs, and total return performance of fixed-rate,
publicly placed, dollar-denominated, and non-convertible investment grade debt
issues with at least $250 million par amount outstanding and with at least one
year to final maturity. The Standard & Poor's (S&P) 500 Index is an unmanaged
index that tracks the performance of 500 widely held, large-capitalization U.S.
stocks. Unlike the fund, indices are not investments, do not incur fees or
expenses and are not professionally managed. It is not possible to invest
directly in an index. Securities in the fund may not match those in an index.
AVERAGE ANNUAL TOTAL RETURN AS OF 02/28/05 (%)
SHARE CLASS A B C D Z
- -------------------------------------------------------------------------------------------------------------
INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 10/01/91
- -------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- -------------------------------------------------------------------------------------------------------------
6-month (cumulative) 6.94 0.79 6.55 1.55 6.55 5.55 6.61 5.61 7.13
- -------------------------------------------------------------------------------------------------------------
1-year 2.27 -3.61 1.46 -3.54 1.46 0.46 1.51 0.51 2.52
- -------------------------------------------------------------------------------------------------------------
5-year 0.03 -1.16 -0.32 -0.67 -0.32 -0.32 -0.30 -0.50 0.20
- -------------------------------------------------------------------------------------------------------------
10-year 8.00 7.36 7.81 7.81 7.81 7.81 7.82 7.72 8.09
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/04 (%)
SHARE CLASS A B C D Z
- -------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- -------------------------------------------------------------------------------------------------------------
6-month (cumulative) 5.13 -0.91 4.74 -0.26 4.74 3.74 4.75 3.75 5.26
- -------------------------------------------------------------------------------------------------------------
1-year 6.37 0.26 5.53 0.53 5.53 4.53 5.54 4.54 6.64
- -------------------------------------------------------------------------------------------------------------
5-year 0.41 -0.78 0.08 -0.26 0.08 0.08 0.10 -0.10 0.57
- -------------------------------------------------------------------------------------------------------------
10-year 8.65 8.01 8.48 8.48 8.48 8.48 8.48 8.38 8.74
THE "WITH SALES CHARGE" RETURNS INCLUDE THE MAXIMUM INITIAL SALES CHARGE OF
5.75% FOR CLASS A SHARES, MAXIMUM CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR
CLASS B SHARES AND 1.00% FOR CLASS C AND D SHARES FOR THE FIRST YEAR ONLY. THE
"WITHOUT SALES CHARGE" RETURNS DO NOT INCLUDE THE EFFECT OF SALES CHARGES. IF
THEY HAD, RETURNS WOULD BE LOWER.
ALL RESULTS SHOWN ASSUME REINVESTMENT OF DISTRIBUTIONS. CLASS Z SHARES ARE SOLD
AT NET ASSET VALUE WITH NO RULE 12B-1 FEES. PERFORMANCE FOR DIFFERENT SHARE
CLASSES WILL VARY BASED ON DIFFERENCES IN SALES CHARGES AND FEES ASSOCIATED WITH
EACH CLASS.
Effective October 13, 2003, class D shares were closed to all new investors and
new accounts. Existing class D shareholders will be able to make additional
purchases at any time. In addition, class D initial sales charge of 1.00% is
waived after October 13, 2003.
Performance results reflect any voluntary waivers or reimbursement of fund
expenses by the advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower.
Classes A, B and D (newer class shares) share performance information includes
returns of the fund's class Z shares (the oldest existing fund class) for
periods prior to the inception of the newer class shares. The returns for class
C include the returns of class B prior to 10/13/03, the date on which class C
was initially offered by the fund. The returns shown for class C also include
the performance of class Z prior to the inception of class B (11/01/02). Class Z
share returns are not restated to reflect any expense differential (e.g., Rule
12b-1 fees) between class Z shares and the newer class shares. Had the expense
differential been reflected, the returns for the periods prior to the inception
of classes A, B, C and D would have been lower.
34
[sidebar]
ESTIMATING YOUR ACTUAL EXPENSES
To estimate the expenses that you paid over the period, first you will need your
account balance at the end of the period:
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA FUNDS
SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT
WWW.COLUMBIAFUNDS.COM OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM THEIR BROKERAGE
FIRM, CONTACT YOUR BROKERAGE FIRM TO OBTAIN YOUR ACCOUNT BALANCE
1. DIVIDE YOUR ENDING ACCOUNT BALANCE BY $1,000. FOR EXAMPLE, IF AN ACCOUNT
BALANCE WAS $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6
2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE
PERIOD," LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER
IS IN THE COLUMN LABELED "ACTUAL." MULTIPLY THIS NUMBER BY THE RESULT FROM
STEP 1. YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR
ACCOUNT DURING THE PERIOD
UNDERSTANDING YOUR EXPENSES ____________________________________________________
Columbia Balanced Fund
As a fund shareholder, you incur two types of costs. There are transaction
costs, which generally include sales charges on purchases and may include
redemption or exchange fees. There are also ongoing costs, which generally
include investment advisory fees, Rule 12b-1 fees, and other fund expenses. The
information on this page is intended to help you understand your ongoing costs
of investing in the fund and to compare these costs with the ongoing costs of
investing in other mutual funds.
ANALYZING YOUR FUND'S EXPENSES BY SHARE CLASS
To illustrate these ongoing costs, we have provided an example and calculated
the expenses paid by investors in each share class during the reporting period.
The information in the following table is based on an initial investment of
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
09/01/04 - 02/28/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
- -----------------------------------------------------------------------------------------------------------------------
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
- -----------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,000.00 1,069.42 1,019.69 5.28 5.16 1.03
Class B 1,000.00 1,000.00 1,065.51 1,015.97 9.12 8.90 1.78
Class C 1,000.00 1,000.00 1,065.51 1,015.97 9.12 8.90 1.78
Class D 1,000.00 1,000.00 1,066.10 1,015.97 9.12 8.90 1.78
Class Z 1,000.00 1,000.00 1,071.31 1,020.93 4.01 3.91 0.78
Expenses paid during the period are equal to the fund's annualized expense
ratio, multiplied by the average account value over the period, then multiplied
by the number of days in the fund's most recent fiscal half-year and divided by
365.
It is important to note that the expense amounts shown in the table are meant to
highlight only ongoing costs of investing in the fund and do not reflect any
transactional costs, such as sales charges, redemption or exchange fees.
Therefore, the hypothetical examples provided may not help you determine the
relative total costs of owning shares of different funds. If these transactional
costs were included, your costs would have been higher.
COMPARE WITH OTHER FUNDS
Since all mutual fund companies are required to include the same hypothetical
calculations about expenses in shareholder reports, you can use this information
to compare the ongoing cost of investing in the fund with other funds. To do so,
compare the 5% hypothetical example with the 5% hypothetical examples that
appear in the shareholder reports of other funds. As you compare hypothetical
examples of other funds, it is important to note that hypothetical examples are
meant to highlight the continuing cost of investing in a fund and do not reflect
any transactional costs, such as sales charges or redemption or exchange fees.
35
[sidebar]
SUMMARY
o FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 28, 2005, THE FUND'S CLASS A
SHARES RETURNED 6.94% WITHOUT SALES CHARGE.
o THE FUND'S RETURN FELL BETWEEN THE RETURN OF ITS BENCHMARKS, THE S&P 500
INDEX AND THE LEHMAN BROTHERS AGGREGATE INDEX. THE FUND TRAILED THE
AVERAGE RETURN OF ITS PEER GROUP, THE LIPPER BALANCED FUNDS CATEGORY. WE
BELIEVE THIS CATEGORY INCLUDED FUNDS WITH A HIGHER PORTION OF EQUITIES IN
THEIR PORTFOLIOS.
o GOOD STOCK SELECTION AND EXPOSURE TO CORPORATE BONDS HELPED THE FUND.
AMONG THE FUND'S EQUITY HOLDINGS THE FOLLOWING SECTORS WERE LEADING
CONTRIBUTORS TO RELATIVE PERFORMANCE: CONSUMER DISCRETIONARY, ENERGY,
INFORMATION TECHNOLOGY AND HEALTH CARE.
[UP ARROW] [UP ARROW]
S&P 500
CLASS A SHARES INDEX
6.94% 9.99%
OBJECTIVE
Seeks high total return by
investing in common stocks
and debt securities.
TOTAL NET ASSETS
$385.2 million
NET ASSET VALUE PER SHARE
AS OF 02/28/05 ($)
Class A 21.01
- -----------------------------------------------
Class B 20.98
- -----------------------------------------------
Class C 20.98
- -----------------------------------------------
Class D 20.98
- -----------------------------------------------
Class Z 21.00
DISTRIBUTIONS DECLARED PER SHARE
09/01/04 - 02/28/05 ($)
Class A 0.22
- -----------------------------------------------
Class B 0.15
- -----------------------------------------------
Class C 0.15
- -----------------------------------------------
Class D 0.15
- -----------------------------------------------
Class Z 0.25
PORTFOLIO MANAGERS' REPORT _____________________________________________________
Columbia Balanced Fund
For the six-month period ended February 25, 2005, Columbia Balanced Fund class A
shares returned 6.94% without sales charge. The fund's return fell between the
returns of the Lehman Brothers Aggregate Bond Index, which returned 1.26%, and
the S&P 500 Index, which returned 9.99%. The fund's return trailed the 7.69%
average return of Lipper Balanced Funds Category, which we believe included
funds with more exposure to equities. 1
During the six-month period, the fund's asset mix remained at or near its upper
limit of 65% for equity investments and 35% for fixed-income. The fund was well
positioned for an environment characterized by good growth in GDP and rising
interest rates. The fund's equity return closely tracked the benchmark S&P 500
Index, while the fixed-income portfolio outperformed its Lehman benchmark.
GOOD STOCK SELECTION IN MANY SECTORS AIDED PERFORMANCE
Good stock selection helped the fund's performance, especially in the consumer
discretionary, energy, information technology and health care groups, which were
the largest contributors to positive performance. Many companies across these
industries produced double-digit gains for the fund. The fund's consumer
discretionary and health care holdings outperformed S&P 500 Index returns for
those sectors. Energy stocks were the best performers during this period.
However, the fund had less exposure to energy than its benchmark, and its
underweight in the sector held back fund performance.
ACQUISITIONS AND OPPORTUNISTIC STYLE ADD VALUE
During the period, the fund had positions in several companies whose attributes
made them attractive take-over candidates. Acquisition announcements spurred
gains in stock prices for Sears Roebuck, May Department Stores and International
Steel Group. We eliminated our position in Sears by the end of the period.
The fund's opportunistic style also figured into the fund's gains during the
period. When new management took over the fund in August, 2004, we adopted a
more contrarian approach to stock selection, seeking companies that appeared to
offer opportunity because they were generally out of favor with investors or, by
contrast, avoiding companies because investors had become overly enthusiastic
about their prospects. One case in point was Jacobs Engineering Group. The
company fell out of favor after some operational concerns, but we believed it
had the potential to get back on track. We also believed the company was poised
to benefit from the robust activity in commercial construction. The company
delivered on both fronts and it was one of the fund's best performers for the
period.
Similarly, we added to semiconductor holdings after the information technology
group had been severely punished. We felt that weakness in these stocks
primarily reflected inventory corrections in the industry. With capacity
utilization rates at 85%, good global growth and demand, semiconductor stocks
rose and helped the fund's return.
In contrast, news that insurance broker Marsh McLennan and technology company
Nortel Networks were caught up in accounting issues sent their shares down
sharply. We eliminated our position in Marsh McLennan by the end of the
reporting period. However, we are maintaining a position in Nortel because we
believe the company will soon resolve its issues.
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.
36
[sidebar]
PORTFOLIO COMPOSITION AS OF 02/28/05 (%)
Common stocks 58.8
- -----------------------------------------------
Mortgage-backed obligations 14.5
- -----------------------------------------------
Corporate fixed-income
bonds & notes 13.8
- -----------------------------------------------
Government agencies & obligations 5.7
- -----------------------------------------------
Collateralized mortgage obligations 3.7
- -----------------------------------------------
Asset-backed securities 1.1
- -----------------------------------------------
Cash & cash equivalents,
net receivables & payables 2.4
TOP 10 EQUITY HOLDINGS AS OF 02/28/05 (%)
MGIC Investment 1.5
- -----------------------------------------------
Microsoft 1.5
- -----------------------------------------------
E.I. du Pont de Nemours 1.4
- -----------------------------------------------
SanDisk 1.4
- -----------------------------------------------
Barr Pharmaceuticals 1.3
- -----------------------------------------------
UnumProvident 1.3
- -----------------------------------------------
Intel 1.2
- -----------------------------------------------
International Business Machines 1.2
- -----------------------------------------------
Time Warner 1.2
- -----------------------------------------------
Comcast 1.2
HOLDINGS DISCUSSED IN THIS REPORT
AS OF 02/28/05 (%)
May Department Stores 0.6
- -----------------------------------------------
International Steel Group 0.9
- -----------------------------------------------
Jacobs Engineering Group 0.4
- -----------------------------------------------
Nortel Networks 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 Balanced Fund
CORPORATE BONDS PROPEL FIXED INCOME GAINS
Performance within the fixed-income portion of the fund was aided by overweight
positions in corporate bonds, which outperformed Treasury securities during the
period. Continuing a two-year trend, investors appeared to be willing to take on
additional risk in pursuit of higher yields. This period also saw a particularly
strong high-yield market. The fund's modest position in these securities also
contributed to positive relative performance.
MIXED RESULTS FROM FUND'S POSITIONING RELATIVE TO FED ACTIONS
The Federal Reserve Board (the Fed) continued to manage the economy's growth by
raising short-term interest rates. In response, we avoided securities with
maturities between two and three years, which were rendered less competitive as
the yields for one-year and shorter-term securities moved higher. However, we
missed out on some of the gains in longer-term bonds because we were slightly
underweight in this maturity range when yields declined and prices rose. We
maintained a relatively light exposure to long-term bonds because we believed
that their yields would also rise, but that was not the case during this
reporting period. However, the fund's overweight position in mortgage-backed
securities gave a decisive boost to performance.
STRONG ECONOMY UNDERPINS INVESTMENT CHALLENGES
Given the overall health of the economy, we plan to maintain significant equity
exposure in the fund. And because we believe that the economy's fundamental
strength and judicious rate increases by the Fed continue to bode well for
corporate bonds, we plan to maintain our significant exposure to the sector.
Columbia Balanced Fund is managed by a group of managers from Columbia's large
cap core team:
/s/ John Maack /s/ Guy W. Pope
John Maack Guy W. Pope, CFA
and Columbia's bond team:
/s/ Leonard A. Aplet /s/ Jeffrey L. Rippey
Leonard A. Aplet, CFA Jeffrey L. Rippey, CFA
Equity investments are affected by stock market fluctuations that occur in
response to economic and business developments.
Investing in fixed-income securities may involve certain risks, including the
credit quality of individual issuers, possible prepayments, market or economic
developments and yield and share price fluctuations due to changes in interest
rates. When interest rates go up, bond prices typically drop, and vice versa.
Investing in high-yield securities (commonly known as "junk bonds") offers the
potential for high current income and attractive total returns but involves
certain risks. Changes in economic conditions or other circumstances may
adversely affect a junk bond issuer's ability to make principal and interest
payments. Rising interest rates tend to lower the value of all bonds.
37
[sidebar]
PERFORMANCE OF A $10,000 INVESTMENT
03/01/95 - 02/28/05 ($)
SALES CHARGE WITHOUT WITH
- -----------------------------------------------
Class A 16,248 15,483
- -----------------------------------------------
Class B 15,958 15,958
- -----------------------------------------------
Class C 16,086 16,086
- -----------------------------------------------
Class D 16,184 16,026
- -----------------------------------------------
Class G 16,041 16,041
- -----------------------------------------------
Class T 16,287 15,520
- -----------------------------------------------
Class Z 16,357 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, when
redeemed, may be worth more or less than the original cost. Please visit
www.columbiafunds.com for daily and most recent month-end performance updates.
PERFORMANCE INFORMATION ________________________________________________________
Columbia Short Term Bond Fund
VALUE OF A $10,000 INVESTMENT 03/01/95 - 02/28/05
[MOUNTAIN CHART]
MERRILL LYNCH
MERRILL LYNCH 1-5 YEAR
CLASS A CLASS A 1-3 YEAR GOVERNMENT/
SHARES WITHOUT SHARES WITH TREASURY CORPORATE BOND
SALES CHARGE SALES CHARGE INDEX INDEX
-------------- ------------ ------------- ---------------
03/95 10000 9525 10000 10000
10051 9574 10056 10060
10137 9656 10145 10164
10300 9810 10323 10401
10346 9855 10379 10464
10378 9885 10421 10491
10436 9940 10484 10563
10481 9983 10535 10624
10579 10076 10624 10728
10687 10180 10717 10841
10771 10259 10800 10939
10867 10351 10892 11036
10790 10277 10846 10960
10741 10231 10836 10930
10730 10221 10845 10919
10736 10226 10867 10926
10819 10305 10946 11020
10854 10338 10988 11060
10875 10358 11026 11086
10989 10467 11126 11208
11120 10591 11252 11363
11207 10675 11338 11474
11187 10656 11338 11445
11234 10701 11392 11496
11250 10716 11418 11516
11217 10684 11413 11488
11321 10783 11507 11598
11384 10843 11585 11683
11459 10915 11665 11774
11592 11041 11793 11947
11584 11034 11804 11930
11659 11105 11894 12041
11750 11192 11982 12150
11755 11196 12011 12173
11832 11270 12092 12263
11952 11384 12210 12406
11938 11371 12221 12404
11971 11402 12271 12452
12032 11460 12328 12511
12095 11520 12394 12587
12142 11565 12458 12660
12190 11611 12517 12717
12355 11768 12674 12902
12533 11937 12842 13132
12594 11996 12905 13175
12549 11953 12893 13156
12594 11996 12938 13205
12637 12037 12990 13271
12538 11943 12926 13151
12625 12025 13015 13259
12650 12049 13057 13303
12616 12017 13049 13251
12656 12055 13090 13289
12683 12080 13132 13304
12694 12091 13170 13331
12768 12161 13255 13439
12782 12175 13291 13470
12795 12187 13316 13491
12819 12210 13335 13494
12807 12199 13330 13464
12887 12275 13419 13560
12938 12324 13502 13666
12973 12357 13537 13675
13027 12408 13593 13715
13128 12505 13734 13896
13183 12557 13821 13994
13272 12641 13923 14125
13327 12694 14023 14252
13385 12749 14099 14316
13533 12890 14233 14480
13751 13098 14402 14690
13920 13259 14582 14903
14034 13368 14677 15020
14137 13465 14799 15156
14152 13480 14839 15165
14235 13558 14922 15255
14284 13606 14973 15311
14503 13814 15140 15556
14620 13926 15228 15670
14818 14114 15479 15950
14999 14286 15626 16139
14901 14193 15592 16042
14864 14158 15598 16008
14919 14210 15629 16055
14986 14274 15704 16154
14900 14193 15598 15993
15081 14364 15772 16213
15173 14452 15835 16338
15262 14537 15968 16480
15352 14623 16163 16691
15461 14727 16218 16833
15622 14880 16353 17047
15538 14800 16390 17045
15541 14803 16340 17014
15682 14937 16495 17275
15701 14955 16493 17283
15825 15073 16563 17435
15839 15087 16592 17470
15901 15146 16624 17549
16020 15259 16687 17737
16027 15266 16712 17760
15791 15041 16622 17531
15810 15059 16633 17541
15978 15219 16785 17820
15927 15170 16723 17711
15916 15160 16714 17710
16016 15255 16811 17844
16062 15299 16845 17910
16109 15344 16926 18039
16173 15405 16978 18140
16031 15269 16815 17857
15981 15222 16800 17811
15991 15231 16798 17830
16058 15295 16859 17934
16164 15396 16975 18135
16177 15408 16960 18135
16225 15455 17013 18218
16183 15415 16927 18092
16237 15465 16963 18163
16253 15481 16956 18156
02/05 16248 15483 16913 18087
The graph and table do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares. The Merrill
Lynch 1-3 Year Treasury Index is an unmanaged index that measures the return of
Treasury notes and bonds with maturities of 1-3 years and a minimum amount
outstanding of $1 billion. The Merrill Lynch 1-5 Year Government/Corporate Bond
Index is an unmanaged index that includes all US government debt with at least
$100 million face value outstanding, as well as investment-grade rated corporate
debt with at least $100 million face value outstanding and a maturity of 1-5
years. Unlike the fund, indices are not investments, do not incur fees or
expenses and are not professionally managed. It is not possible to invest
directly in an index. Securities in the fund may not match those in an index.
AVERAGE ANNUAL TOTAL RETURN AS OF 02/28/05 (%)
SHARE CLASS A B C D G T Z
- ------------------------------------------------------------------------------------------------------------------------------
INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 11/01/02 11/01/02 11/06/86
- ------------------------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- ------------------------------------------------------------------------------------------------------------------------------
6-month (cumulative) 0.54 -4.23 0.16 -4.80 0.47 -0.52 0.47 -0.53 0.26 -4.70 0.59 -4.18 0.66
- ------------------------------------------------------------------------------------------------------------------------------
1-year 0.89 -3.86 0.11 -4.82 0.76 -0.23 0.72 -0.26 0.32 -4.61 0.97 -3.79 1.14
- ------------------------------------------------------------------------------------------------------------------------------
5-year 4.75 3.73 4.37 4.03 4.54 4.54 4.66 4.46 4.48 3.97 4.80 3.78 4.89
- ------------------------------------------------------------------------------------------------------------------------------
10-year 4.97 4.47 4.78 4.78 4.87 4.87 4.93 4.83 4.84 4.84 5.00 4.49 5.04
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/04 (%)
SHARE CLASS A B C D G T Z
- ------------------------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- ------------------------------------------------------------------------------------------------------------------------------
6-month (cumulative) 1.53 -3.32 1.13 -3.87 1.46 0.46 1.44 0.44 1.24 -3.76 1.57 -3.28 1.65
- ------------------------------------------------------------------------------------------------------------------------------
1-year 1.38 -3.41 0.60 -4.36 1.17 0.18 1.21 0.22 0.81 -4.15 1.46 -3.33 1.63
- ------------------------------------------------------------------------------------------------------------------------------
5-year 4.84 3.82 4.48 4.15 4.63 4.63 4.76 4.56 4.59 4.08 4.88 3.86 4.97
- ------------------------------------------------------------------------------------------------------------------------------
10-year 5.20 4.69 5.03 5.03 5.10 5.10 5.17 5.06 5.08 5.08 5.23 4.72 5.27
THE "WITH SALES CHARGE" RETURNS INCLUDE THE MAXIMUM INITIAL SALES CHARGE OF
4.75% FOR CLASS A AND T SHARES, MAXIMUM CONTINGENT DEFERRED SALES CHARGE OF
5.00% FOR CLASS B AND G SHARES AND 1.00% FOR CLASS C AND D SHARES FOR THE FIRST
YEAR ONLY. THE "WITHOUT SALES CHARGE" RETURNS DO NOT INCLUDE THE EFFECT OF SALES
CHARGES. IF THEY HAD, RETURNS WOULD BE LOWER.
ALL RESULTS SHOWN ASSUME REINVESTMENT OF DISTRIBUTIONS. CLASS Z SHARES ARE SOLD
AT NET ASSET VALUE WITH NO RULE 12B-1 FEES. PERFORMANCE FOR DIFFERENT SHARE
CLASSES WILL VARY BASED ON DIFFERENCES IN SALES CHARGES AND FEES ASSOCIATED WITH
EACH CLASS.
Effective October 13, 2003, class D shares were closed to all new investors and
new accounts. Existing class D shareholders will be able to make additional
purchases at any time. In addition, class D initial sales charge of 1.00% is
waived after October 13, 2003.
Performance results reflect any voluntary waivers or reimbursement of fund
expenses by the advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower.
Classes A, B, D, G and T (newer class shares) share performance information
includes returns of the fund's class Z shares (the oldest existing fund class)
for periods prior to the inception of the newer class shares. The returns for
class C include the returns of class B prior to 10/13/03, the date on which
class C was initially offered by the fund. The returns shown for class C also
include the performance of class Z prior to the inception of class B (11/01/02).
Class Z share returns are not restated to reflect any expense differential
(e.g., Rule 12b-1 fees) between class Z shares and the newer class shares. Had
the expense differential been reflected, the returns for the periods prior to
the inception of classes A, B, C, D, G and T would have been lower.
38
[sidebar]
ESTIMATING YOUR ACTUAL EXPENSES
To estimate the expenses that you paid over the period, first you will need your
account balance at the end of the period:
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA FUNDS
SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT
WWW.COLUMBIAFUNDS.COM OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM THEIR BROKERAGE
FIRM, CONTACT YOUR BROKERAGE FIRM TO OBTAIN YOUR ACCOUNT BALANCE
1. DIVIDE YOUR ENDING ACCOUNT BALANCE BY $1,000. FOR EXAMPLE, IF AN ACCOUNT
BALANCE WAS $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6
2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE
PERIOD," LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER
IS IN THE COLUMN LABELED "ACTUAL." MULTIPLY THIS NUMBER BY THE RESULT FROM
STEP 1. YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR
ACCOUNT DURING THE PERIOD
UNDERSTANDING YOUR EXPENSES ____________________________________________________
Columbia Short Term Bond Fund
As a fund shareholder, you incur two types of costs. There are transaction
costs, which generally include sales charges on purchases and may include
redemption or exchange fees. There are also ongoing costs, which generally
include investment advisory fees, Rule 12b-1 fees, and other fund expenses. The
information on this page is intended to help you understand your ongoing costs
of investing in the fund and to compare these costs with the ongoing costs of
investing in other mutual funds.
ANALYZING YOUR FUND'S EXPENSES BY SHARE CLASS
To illustrate these ongoing costs, we have provided an example and calculated
the expenses paid by investors in each share class during the reporting period.
The information in the following table is based on an initial investment of
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
09/01/04 - 02/28/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
- ----------------------------------------------------------------------------------------------------------------------
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
- ----------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,000.00 1,005.41 1,020.38 4.43 4.46 0.89
- ----------------------------------------------------------------------------------------------------------------------
Class B 1,000.00 1,000.00 1,001.59 1,016.66 8.14 8.20 1.64
- ----------------------------------------------------------------------------------------------------------------------
Class C 1,000.00 1,000.00 1,004.71 1,019.64 5.17 5.21 1.04
- ----------------------------------------------------------------------------------------------------------------------
Class D 1,000.00 1,000.00 1,004.71 1,019.64 5.17 5.21 1.04
- ----------------------------------------------------------------------------------------------------------------------
Class G 1,000.00 1,000.00 1,002.58 1,017.65 7.15 7.20 1.44
- ----------------------------------------------------------------------------------------------------------------------
Class T 1,000.00 1,000.00 1,005.90 1,020.88 3.93 3.96 0.79
- ----------------------------------------------------------------------------------------------------------------------
Class Z 1,000.00 1,000.00 1,006.60 1,021.62 3.18 3.21 0.64
Expenses paid during the period are equal to the fund's annualized expense
ratio, multiplied by the average account value over the period, then multiplied
by the number of days in the fund's most recent fiscal half-year and divided by
365.
Had the Investment Advisor and/or Distributor not reimbursed a portion of
expenses, total return would have been reduced.
It is important to note that the expense amounts shown in the table are meant to
highlight only ongoing costs of investing in the fund and do not reflect any
transactional costs, such as sales charges, redemption or exchange fees.
Therefore, the hypothetical examples provided may not help you determine the
relative total costs of owning shares of different funds. If these transactional
costs were included, your costs would have been higher.
COMPARE WITH OTHER FUNDS
Since all mutual fund companies are required to include the same hypothetical
calculations about expenses in shareholder reports, you can use this information
to compare the ongoing cost of investing in the fund with other funds. To do so,
compare the 5% hypothetical example with the 5% hypothetical examples that
appear in the shareholder reports of other funds. As you compare hypothetical
examples of other funds, it is important to note that hypothetical examples are
meant to highlight the continuing cost of investing in a fund and do not reflect
any transactional costs, such as sales charges or redemption or exchange fees.
39
[sidebar]
SUMMARY
o FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 28, 2005, THE FUND'S CLASS A
SHARES RETURNED 0.54% WITHOUT SALES CHARGE.
o THE FUND'S RETURN WAS HIGHER THAN THE MERRILL LYNCH 1-3 YEAR TREASURY
INDEX, THE MERRILL LYNCH 1-5 YEAR GOVERNMENT/CORPORATE BOND INDEX AND THE
LIPPER SHORT INVESTMENT GRADE DEBT CATEGORY AVERAGE.
o THE FUND'S RELATIVE STRONG PERFORMANCE WHEN COMPARED TO THE BENCHMARKS
RESULTED FROM AN EMPHASIS ON FLOATING RATE SECURITIES AND A BARBELL
STRATEGY THAT MINIMIZED EXPOSURE TO INTERMEDIATE-TERM BONDS, WHICH WERE
HURT BY RISING SHORT-TERM INTEREST RATES.
[UP ARROW] [DOWN ARROW]
MERRILL LYNCH 1-3
CLASS A SHARES YEAR TREASURY INDEX
0.54% -0.33%
OBJECTIVE
Seeks a high level of current
income consistent with a high
degree of principal stability by
investing primarily in short-
term, investment-grade, fixed
income securities.
TOTAL NET ASSETS
$493.2 million
NET ASSET VALUE PER SHARE
AS OF 02/28/05 ($)
Class A 8.58
- -----------------------------------------------
Class B 8.58
- -----------------------------------------------
Class C 8.58
- -----------------------------------------------
Class D 8.58
- -----------------------------------------------
Class G 8.58
- -----------------------------------------------
Class T 8.58
- -----------------------------------------------
Class Z 8.58
Distributions declared per share
09/01/04 - 02/28/05 ($)
Class A 0.11
- -----------------------------------------------
Class B 0.07
- -----------------------------------------------
Class C 0.10
- -----------------------------------------------
Class D 0.10
- -----------------------------------------------
Class G 0.08
- -----------------------------------------------
Class T 0.11
- -----------------------------------------------
Class Z 0.12
PORTFOLIO MANAGERS' REPORT _____________________________________________________
Columbia Short Term Bond Fund
For the six-month period ended February 28, 2005, Columbia Short Term Bond Fund
class A shares returned 0.54% without sales charge. The fund's performance was
higher than the benchmark Merrill Lynch 1-3 Year Treasury Index, which returned
negative 0.33%, and the Merrill Lynch 1-5 Year Government/Corporate Bond Index,
which returned negative 0.29%, during the period. The fund also outperformed its
peer group, the Lipper Short Investment Grade Debt Category, whose average
return was 0.33%. 1 The fund's positions in floating-rate securities aided
performance during a period of rising short-term interest rates.
RISE IN SHORT-TERM INTEREST RATES BOOSTED YIELD
The most important development during the period was the sustained effort by the
Federal Reserve Board (the Fed) to push short-term interest rates higher. On
June 30, 2004, the Fed raised the federal funds rate--the overnight lending rate
for banks--from 1.0% to 1.25%. It intervened on five subsequent occasions to
raise the federal funds rate in one-quarter percentage point increments to
2.50%. 2 During this reporting period, rates on three-month Treasury securities
increased 117 basis points to 2.75%, while two-year yields rose by 120 basis
points to 3.60%. (A basis point in one one-hundredth of one percent.) These
increases helped boost the fund's yield above the very low yield levels that
have prevailed for more than a year. Furthermore, because 25% of the portfolio
was invested in floating-rate securities, whose coupons are reset as interest
rates change, fund performance received an added boost.
Our overall response to the Fed's interest rate increases was to employ a
barbell strategy that minimized our exposure to intermediate (two- to three-year
maturity) bonds. This maturity range was the worst-performing segment of the
fixed-income market.
Generally speaking, we made few changes to the fund's sector allocations during
the period. Approximately 49% of the fund's assets were devoted to mortgage and
asset-backed securities, 38% to corporate obligations with the remainder in
Treasuries and a small amount was held in cash or cash equivalents.
1 Lipper Inc., a widely respected data provider in the industry, calculates
an average total return for mutual funds with similar investment
objectives as those of the fund.
2 On March 22, 2005, the federal funds rate was increased to 2.75%.
40
[sidebar]
PORTFOLIO QUALITY AS OF 02/28/05 (%)
Aaa 30.3
- -----------------------------------------------
Aa 10.3
- -----------------------------------------------
A 18.3
- -----------------------------------------------
Baa 11.4
- -----------------------------------------------
Agency 22.7
- -----------------------------------------------
Treasury 7.0
Portfolio quality is calculated as a percentage of total investments.
Ratings shown in the quality breakdown represent the highest rating assigned to
a particular bond by one of the following nationally recognized rating agencies:
Standard & Poor's, a division of The McGraw-Hill Companies, Inc., Moody's
Investors Service, Inc. or Fitch Ratings Ltd.
PORTFOLIO COMPOSITION AS OF 02/28/05 (%)
Corporate fixed-income
bonds & notes 35.7
- -----------------------------------------------
Mortgage-backed obligations 20.9
- -----------------------------------------------
Collateralized mortgage obligations 17.4
- -----------------------------------------------
Asset-backed securities 11.3
- -----------------------------------------------
Government agencies & obligations 10.5
- -----------------------------------------------
Cash & cash equivalents,
net receivables & payables 4.2
MATURITY BREAKDOWN AS OF 02/28/05 (%)
0-1 years 41.1
- -----------------------------------------------
1-3 years 36.8
- -----------------------------------------------
3-5 years 20.9
- -----------------------------------------------
5-10 years 1.2
Your fund is actively managed and the composition of its portfolio will change
over time. Portfolio composition and maturity breakdown are calculated as a
percentage of net assets.
________________________________________________________________________________
Columbia Short Term Bond Fund
FUND POSITIONED FOR RISING INFLATION RATE
Now that the economy has produced several quarters of solid, though
unexceptional, growth, we expect the Fed to continue to push short-term rates
higher for at least the first half of 2005. Overall, the economy is expected to
grow at a pace of roughly 3.5% for the year, with inflation, as measured by the
Consumer Price Index, at about 2.5%. Although we do not view this amount of
inflation as particularly worrisome, we have recently added slightly to the
portfolio's holdings of TIPS (Treasury Inflation-Protected Securities). We were
able to purchase these securities at attractive prices during January,
essentially providing a hedge against higher-than-expected inflation.
Leonard A. Aplet, CFA, has co-managed Columbia Short
Term Bond Fund since November 2000 and has been with
the advisor or its predecessors or affiliate
organizations since 1987.
/s/ Leonard A. Aplet
Richard R. Cutts, CFA, has co-managed the fund since
December 2002 and has been with the advisor or its
predecessors or affiliate organizations since 1994.
/s/ Richard R. Cutts
The Board of Trustees has approved a proposal to reorganize the Columbia Short
Term Bond Fund into the Nations Short-Term Income Fund, subject to shareholder
approval and the satisfaction of certain other conditions. The effective date of
the reorganization is expected to be in September or October of 2005.
Investing in fixed-income securities may involves certain risks, including the
credit quality of individual issuers, possible prepayments, market or economic
developments and yields and share price fluctuations due to changes in interest
rates. When interest rates go up, bond prices typically drop, and vice versa.
41
[sidebar]
PERFORMANCE OF A $10,000 INVESTMENT
03/01/95 - 02/28/05 ($)
SALES CHARGE WITHOUT WITH
- -----------------------------------------------
Class A 19,021 18,124
- -----------------------------------------------
Class B 18,689 18,689
- -----------------------------------------------
Class C 18,727 18,727
- -----------------------------------------------
Class D 18,772 18,579
- -----------------------------------------------
Class Z 19,184 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, when
redeemed, may be worth more or less than the original cost. Please visit
www.columbiafunds.com for daily and most recent month-end performance updates.
PERFORMANCE INFORMATION ________________________________________________________
Columbia Fixed Income Securities Fund
VALUE OF A $10,000 INVESTMENT 03/01/95 - 02/28/05
[MOUNTAIN CHART]
LEHMAN
CLASS A CLASS A BROTHERS
SHARES WITHOUT SHARES WITH AGGREGATE
SALES CHARGE SALES CHARGE BOND INDEX
-------------- ------------ ----------
03/95 10000 9525 10000
10068 9590 10061
10216 9731 10202
10624 10119 10597
10709 10200 10674
10681 10173 10651
10815 10302 10779
10933 10414 10884
11076 10550 11025
11246 10712 11191
11408 10866 11348
11477 10932 11422
11265 10730 11224
11191 10659 11145
11105 10577 11083
11080 10554 11061
11236 10703 11209
11254 10720 11239
11245 10711 11220
11448 10904 11415
11690 11135 11669
11907 11341 11868
11794 11233 11758
11841 11278 11794
11878 11313 11824
11752 11193 11692
11924 11358 11868
12035 11464 11981
12174 11595 12123
12508 11914 12450
12397 11808 12345
12576 11978 12526
12767 12160 12708
12805 12197 12766
12922 12308 12895
13077 12456 13060
13066 12446 13050
13096 12474 13094
13164 12539 13162
13295 12663 13287
13402 12766 13400
13422 12785 13428
13641 12993 13647
13900 13240 13966
13778 13124 13892
13836 13179 13972
13884 13225 14014
13983 13319 14113
13715 13063 13866
13802 13147 13942
13848 13190 13987
13683 13033 13864
13623 12976 13819
13532 12889 13760
13505 12863 13753
13671 13021 13913
13709 13058 13964
13725 13073 13963
13672 13022 13896
13591 12946 13850
13730 13078 14018
13904 13244 14203
13856 13197 14161
13844 13187 14154
14145 13473 14449
14245 13569 14580
14462 13775 14792
14563 13871 14885
14643 13948 14983
14910 14201 15229
15212 14490 15512
15482 14746 15766
15616 14874 15904
15701 14955 15983
15602 14861 15916
15706 14960 16011
15752 15004 16072
16112 15347 16432
16267 15494 16621
16438 15657 16816
16770 15973 17167
16560 15774 16930
16449 15668 16822
16550 15764 16958
16684 15891 17123
16449 15667 16838
16753 15957 17165
16880 16078 17311
16943 16138 17460
17105 16293 17671
17398 16571 17970
17652 16813 18261
17447 16618 18177
17428 16600 18171
17693 16852 18548
17714 16873 18564
17960 17107 18820
17948 17095 18805
18082 17223 18962
18372 17499 19314
18313 17443 19276
17729 16886 18628
17840 16993 18751
18293 17424 19248
18132 17271 19069
18123 17263 19115
18290 17421 19309
18431 17555 19464
18602 17719 19674
18733 17843 19822
18300 17431 19306
18181 17317 19229
18257 17390 19339
18431 17555 19530
18755 17864 19903
18817 17923 19957
18973 18072 20125
18825 17931 19964
18996 18094 20147
19086 18179 20274
02/05 19021 18124 20158
The graph and table do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares. The Lehman
Brothers Aggregate Bond Index is a market value-weighted index that tracks the
daily price, coupon, pay-downs, and total return performance of fixed-rate,
publicly placed, dollar-denominated, and non-convertible investment grade debt
issues with at least $250 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 02/28/05 (%)
SHARE CLASS A B C D Z
- --------------------------------------------------------------------------------------------------------------
INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 02/25/83
- --------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- --------------------------------------------------------------------------------------------------------------
6-month (cumulative) 1.41 -3.39 1.04 -3.89 1.11 0.13 1.11 0.13 1.51
- --------------------------------------------------------------------------------------------------------------
1-year 2.24 -2.61 1.48 -3.39 1.65 0.68 1.64 0.66 2.45
- --------------------------------------------------------------------------------------------------------------
5-year 6.74 5.70 6.36 6.05 6.40 6.40 6.46 6.25 6.92
- --------------------------------------------------------------------------------------------------------------
10-year 6.64 6.13 6.45 6.45 6.47 6.47 6.50 6.39 6.73
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/04 (%)
SHARE CLASS A B C D Z
- --------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- --------------------------------------------------------------------------------------------------------------
6-month (cumulative) 4.05 -0.90 3.65 -1.35 3.74 2.74 3.73 2.73 4.15
- --------------------------------------------------------------------------------------------------------------
1-year 3.87 -1.04 3.09 -1.85 3.23 2.24 3.25 2.26 4.08
- --------------------------------------------------------------------------------------------------------------
5-year 6.80 5.77 6.45 6.14 6.49 6.49 6.54 6.32 6.98
- --------------------------------------------------------------------------------------------------------------
10-year 7.07 6.55 6.90 6.90 6.91 6.91 6.94 6.84 7.16
THE "WITH SALES CHARGE" RETURNS INCLUDE THE MAXIMUM INITIAL SALES CHARGE OF
4.75% FOR CLASS A SHARES, MAXIMUM CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR
CLASS B SHARES AND 1.00% FOR CLASS C AND D SHARES FOR THE FIRST YEAR ONLY. THE
"WITHOUT SALES CHARGE" RETURNS DO NOT INCLUDE THE EFFECT OF SALES CHARGES. IF
THEY HAD, RETURNS WOULD BE LOWER.
ALL RESULTS SHOWN ASSUME REINVESTMENT OF DISTRIBUTIONS. CLASS Z SHARES ARE SOLD
AT NET ASSET VALUE WITH NO RULE 12B-1 FEES. PERFORMANCE FOR DIFFERENT SHARE
CLASSES WILL VARY BASED ON DIFFERENCES IN SALES CHARGES AND FEES ASSOCIATED WITH
EACH CLASS.
Effective October 13, 2003, class D shares were closed to all new investors and
new accounts. Existing class D shareholders will be able to make additional
purchases at any time. In addition, the class D initial sales charge of 1.00% is
waived after October 13, 2003.
Performance results reflect any voluntary waivers or reimbursement of fund
expenses by the advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower.
Classes A, B and D (newer class shares) share performance information includes
returns of the fund's class Z shares (the oldest existing fund class) for
periods prior to the inception of the newer class shares. The returns for Class
C include the returns of Class B prior to 10/13/03, the date on which class C
was initially offered by the fund. The returns shown for Class C also include
the performance of Class Z prior to the inception of Class B (11/01/02). Class Z
share returns are not restated to reflect any expense differential (e.g., Rule
12b-1 fees) between class Z shares and the newer class shares. Had the expense
differential been reflected, the returns for the periods prior to the inception
of classes A, B, C and D would have been lower.
42
[sidebar]
ESTIMATING YOUR ACTUAL EXPENSES
To estimate the expenses that you paid over the period, first you will need your
account balance at the end of the period:
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA FUNDS
SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT
WWW.COLUMBIAFUNDS.COM OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM THEIR BROKERAGE
FIRM, CONTACT YOUR BROKERAGE FIRM TO OBTAIN YOUR ACCOUNT BALANCE
1. DIVIDE YOUR ENDING ACCOUNT BALANCE BY $1,000. FOR EXAMPLE, IF AN ACCOUNT
BALANCE WAS $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6
2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE
PERIOD," LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER
IS IN THE COLUMN LABELED "ACTUAL." MULTIPLY THIS NUMBER BY THE RESULT FROM
STEP 1. YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR
ACCOUNT DURING THE PERIOD
UNDERSTANDING YOUR EXPENSES_____________________________________________________
Columbia Fixed Income Securities Fund
As a fund shareholder, you incur two types of costs. There are transaction
costs, which generally include sales charges on purchases and may include
redemption or exchange fees. There are also ongoing costs, which generally
include investment advisory fees, Rule 12b-1 fees, and other fund expenses. The
information on this page is intended to help you understand your ongoing costs
of investing in the fund and to compare these costs with the ongoing costs of
investing in other mutual funds.
ANALYZING YOUR FUND'S EXPENSES BY SHARE CLASS
To illustrate these ongoing costs, we have provided an example and calculated
the expenses paid by investors in each share class during the reporting period.
The information in the following table is based on an initial investment of
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
09/01/04 - 02/28/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
- -----------------------------------------------------------------------------------------------------------------------
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
- -----------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,000.00 1,014.08 1,019.34 5.49 5.51 1.10
- -----------------------------------------------------------------------------------------------------------------------
Class B 1,000.00 1,000.00 1,010.41 1,015.62 9.22 9.25 1.85
- -----------------------------------------------------------------------------------------------------------------------
Class C 1,000.00 1,000.00 1,011.11 1,016.36 8.48 8.50 1.70
- -----------------------------------------------------------------------------------------------------------------------
Class D 1,000.00 1,000.00 1,011.11 1,016.36 8.48 8.50 1.70
- -----------------------------------------------------------------------------------------------------------------------
Class Z 1,000.00 1,000.00 1,015.12 1,020.58 4.25 4.26 0.85
Expenses paid during the period are equal to the fund's annualized expense
ratio, multiplied by the average account value over the period, then multiplied
by the number of days in the fund's most recent fiscal half-year and divided by
365.
Had the Distributor not waived a portion of expenses, total return would have
been reduced.
It is important to note that the expense amounts shown in the table are meant to
highlight only ongoing costs of investing in the fund and do not reflect any
transactional costs, such as sales charges, redemption or exchange fees.
Therefore, the hypothetical examples provided may not help you determine the
relative total costs of owning shares of different funds. If these transactional
costs were included, your costs would have been higher.
COMPARE WITH OTHER FUNDS
Since all mutual fund companies are required to include the same hypothetical
calculations about expenses in shareholder reports, you can use this information
to compare the ongoing cost of investing in the fund with other funds. To do so,
compare the 5% hypothetical example with the 5% hypothetical examples that
appear in the shareholder reports of other funds. As you compare hypothetical
examples of other funds, it is important to note that hypothetical examples are
meant to highlight the continuing cost of investing in a fund and do not reflect
any transactional costs, such as sales charges or redemption or exchange fees.
43
[sidebar]
SUMMARY
o FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 28, 2005, THE FUND'S CLASS A
SHARES RETURNED 1.41% WITHOUT SALES CHARGE.
o THE FUND OUTPERFORMED THE LEHMAN BROTHERS AGGREGATE BOND INDEX BUT TRAILED
THE AVERAGE RETURN OF ITS PEER GROUP, THE LIPPER CORPORATE DEBT FUNDS A
RATED CATEGORY.
o AN EMPHASIS ON CORPORATE BONDS AND MORTGAGE-BACKED SECURITIES HELPED
PERFORMANCE AS THESE BONDS DID WELL DURING THE PERIOD.
[UP ARROW] [UP ARROW]
LEHMAN BROTHERS AGGREGATE
CLASS A SHARES BOND INDEX
1.41% 1.26%
OBJECTIVE
Seeks a high level of income by
investing in a broad range
of debt securities with
intermediate to long-term
maturities.
TOTAL NET ASSETS
$283.1 million
NET ASSET VALUE PER SHARE
AS OF 02/28/05 ($)
Class A 13.28
- -----------------------------------------------
Class B 13.28
- -----------------------------------------------
Class C 13.28
- -----------------------------------------------
Class D 13.28
- -----------------------------------------------
Class Z 13.28
DISTRIBUTIONS DECLARED PER SHARE
09/01/04 - 02/28/05 ($)
Class A 0.40
- -----------------------------------------------
Class B 0.35
- -----------------------------------------------
Class C 0.36
- -----------------------------------------------
Class D 0.36
- -----------------------------------------------
Class Z 0.41
Distributions include $0.14 per share of realized gains.
PORTFOLIO MANAGERS' REPORT______________________________________________________
Columbia Fixed Income Securities Fund
For the six-month period ended February 28, 2005, Columbia Fixed Income
Securities Fund class A shares returned 1.41% without sales charge. By
comparison, the Lehman Brothers Aggregate Bond Index and the Lipper Corporate
Debt Funds A Rated Category average returned 1.26% and 1.54%, respectively, over
the same period. 1 The fund benefited from its emphasis on mortgage-backed
securities, which performed well during the period. We believe that the fund's
exposure to longer-term bonds, which led a rally late in the period, may have
been lower than its peer group and accounted for its slight underperformance.
However, we believe that our positioning is appropriate, given the likelihood of
rising interest rates in the period ahead.
SHORT-TERM INTEREST RATES ROSE, WHILE LONG-TERM RATES DECLINED
During the six-month reporting period, short-term rates rose while long-term
rates fell, resulting in what is known as a flattening yield curve. The yield
curve connects the points on a graph depicting the yields for various Treasury
maturities, from short- to long-term.
The rise in short-term rates came as no surprise. On June 30, 2004, the Federal
Reserve Board (the Fed) raised a key short-term interest rate--the federal funds
rate--for the first time in four years. The Fed indicated that it would continue
to raise short-term rates at a measured pace in an effort to control inflation
and maintain economic growth. True to its word, the Fed raised the federal funds
rate by one-quarter of one percentage point at each of its four meetings during
this reporting period, from 1.50% to 2.50%. 2 The yield on three-month Treasury
securities rose by 117 basis points to yield 2.75%, while two-year Treasury
yields rose by 120 basis points to 3.60%. (A basis point is one hundredth of one
percent.)
The decline in long-term rates was somewhat surprising to investors because it
occurred despite weakness in the dollar and high energy prices, both of which
have historically tended to lead to higher inflation. Ultimately the Consumer
Price Index (CPI), a common measure of inflation, rose 3.3% in 2004. However,
the core rate of inflation rose only 2.2%, an indication that an increase in
energy prices did not spread to the entire economy. Also, foreign central banks
have been substantial buyers of dollar-denominated assets, including Treasury
obligations with longer maturities. Their purchases helped to bring long-term
yields down.
SECTOR ALLOCATION AIDED PERFORMANCE
The fund's emphasis on corporate bonds and mortgage-backed securities helped the
fund's performance relative to its benchmark. Altogether, 33% of the fund's
assets are invested in investment-grade corporate bonds. This figure is down
approximately two percentage points from the level of six months ago.
Mortgage-backed and asset-backed securities account for about 50% of the
portfolio. We have emphasized CMOs
1 Lipper Inc., a widely respected data provider in the industry, calculates
an average total return for mutual funds with similar investment
objectives as those of the fund.
2 On March 22, 2005, the federal funds rate was raised to 2.75%.
44
[sidebar]
PORTFOLIO QUALITY AS OF 02/28/05 (%)
TREASURY/AGENCY 48.7
- -----------------------------------------------
Aaa 13.1
- -----------------------------------------------
Aa 6.7
- -----------------------------------------------
A 13.5
- -----------------------------------------------
Baa 12.1
- -----------------------------------------------
Ba 3.5
- -----------------------------------------------
B 2.3
- -----------------------------------------------
Caa 0.1
Portfolio quality is calculated as a percentage of total investments.
Ratings shown in the quality breakdown represent the rating assigned to a
particular bond by one of the following nationally recognized rating agencies:
Standard & Poor's, a division of The McGraw-Hill Companies, Inc., Moody's
Investors Service, Inc. or Fitch Ratings Ltd.
PORTFOLIO COMPOSITION
AS OF 02/28/05 (%)
Mortgage-backed obligations 38.8
- -----------------------------------------------
Corporate fixed-income
bonds & notes 36.5
- -----------------------------------------------
Government agencies &obligations 11.9
- -----------------------------------------------
Collateralized mortgage obligations 7.0
- -----------------------------------------------
Asset-backed securities 3.3
- -----------------------------------------------
Cash & cash equivalents,
net receivables & payables 2.5
MATURITY BREAKDOWN AS OF 02/28/05 (%)
0-1 years 12.0
- -----------------------------------------------
1-5 years 58.0
- -----------------------------------------------
5-10 years 20.7
- -----------------------------------------------
10-20 years 0.0
- -----------------------------------------------
20+ years 9.3
Your fund is actively managed and the composition of its portfolio will change
over time. Portfolio composition and maturity breakdown are calculated as a
percentage of net assets.
________________________________________________________________________________
Columbia Fixed Income Securities Fund
(collateralized mortgage obligations) because they provide slightly better
protection against interest-rate shifts than offered by conventional
pass-through securities.
Gains from these sectors helped offset a modest shortfall that resulted from the
fund's duration, which was slightly lower than the benchmark. Duration is a
measure of the fund's sensitivity to interest rates. Generally, we keep the
duration of the fund within one year of the duration of the Lehman Brothers
Aggregate Bond Index. We tend to lower duration when we expect interest rates to
rise. If we are right, our move helps cushion the fund because interest rates
and prices move in opposite directions. However, longer-term interest rates
declined during this reporting period, which hindered this strategy.
RELATIVELY SHORT DURATION MAINTAINED
We have maintained the fund's relatively short duration because we believe that
interest rates are likely to rise in 2005. In addition, we have added slightly
to the fund's holdings of TIPS (Treasury Inflation-Protected Securities).
Although we are not overly concerned about inflation, we viewed these securities
as attractively priced.
Leonard A. Aplet has co-managed Columbia Fixed
Income Securities Fund since January1988 and has
been with the advisor or its predecessors or
affiliate organizations since 1987.
/s/ Leonard A. Aplet
Richard R. Cutts has co-managed the fund since
December 2002 and has been with the advisor or its
predecessors or affiliate organizations since 1994.
/s/ Richard R. Cutts
Investing in fixed-income securities may involves certain risks, including the
credit quality of individual issuers, possible prepayments, market or economic
developments and yields and share price fluctuations due to changes in interest
rates. When interest rates go up, bond prices typically drop, and vice versa.
45
[sidebar]
PERFORMANCE OF A $10,000 INVESTMENT
02/24/99 - 02/28/05 ($)
SALES CHARGE WITHOUT WITH
- -----------------------------------------------
Class A 13,191 12,563
- -----------------------------------------------
Class B 12,967 12,967
- -----------------------------------------------
Class C 13,030 13,030
- -----------------------------------------------
Class D 13,066 12,937
- -----------------------------------------------
Class Z 13,276 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, when
redeemed, may be worth more or less than the original cost. Please visit
www.columbiafunds.com for daily and most recent month-end performance updates.
PERFORMANCE INFORMATION_________________________________________________________
Columbia National Municipal Bond Fund
VALUE OF A $10,000 INVESTMENT 02/24/99 - 02/28/05
[MOUNTAIN CHART]
LEHMAN
CLASS A SHARES CLASS A SHARES BROTHERS
WITHOUT SALES WITH SALES MUNICIPAL BOND
CHARGE CHARGE INDEX
-------------- -------------- --------------
02/99 10000 9525 10000
9934 9462 10000
9920 9449 10014
9951 9478 10039
9893 9423 9981
9733 9271 9837
9768 9304 9872
9671 9212 9794
9675 9216 9797
9567 9112 9692
9674 9214 9794
9608 9152 9721
9543 9089 9678
9641 9183 9790
9868 9399 10004
9791 9326 9945
9714 9253 9893
9985 9511 10155
10110 9630 10296
10267 9779 10455
10209 9724 10401
10336 9845 10514
10407 9913 10594
10654 10148 10856
10749 10238 10963
10765 10253 10998
10861 10345 11097
10737 10227 10977
10844 10329 11096
10918 10399 11170
11082 10555 11335
11256 10721 11522
11216 10684 11483
11346 10807 11620
11217 10684 11522
11097 10570 11413
11297 10760 11610
11426 10883 11750
11205 10673 11519
11454 10910 11744
11517 10970 11816
11649 11096 11941
11818 11257 12095
11952 11384 12240
12236 11655 12508
12017 11446 12300
11950 11382 12249
12209 11629 12507
12137 11561 12476
12328 11742 12651
12339 11753 12658
12431 11841 12742
12733 12129 13040
12665 12063 12985
12210 11630 12531
12302 11717 12625
12694 12091 12996
12585 11987 12931
12694 12091 13065
12803 12195 13174
12851 12240 13249
13074 12453 13448
12985 12369 13401
12647 12046 13083
12644 12043 13036
12693 12090 13083
12843 12233 13255
13068 12447 13521
13115 12492 13592
13174 12548 13709
13042 12423 13597
13193 12567 13763
13266 12636 13891
02/05 13191 12563 13848
The graph and table do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares. The Lehman
Brothers Municipal Bond Index is an unmanaged index considered representative of
the broad market for investment-grade, tax exempt bonds with a maturity of at
least one year. Unlike the fund, indices are not investments, do not incur fees
or expenses and are not professionally managed. It is not possible to invest
directly in an index. Securities in the fund may not match those in an index.
Index performance is from February 28, 1999.
AVERAGE ANNUAL TOTAL RETURN AS OF 02/28/05 (%)
SHARE CLASS A B C D Z
- -------------------------------------------------------------------------------------------------------------
INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 02/24/99
- -------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- -------------------------------------------------------------------------------------------------------------
6-MONTH (CUMULATIVE) 1.00 -3.80 0.63 -4.30 0.80 -0.18 0.80 -0.18 1.12
- -------------------------------------------------------------------------------------------------------------
1-year 0.94 -3.85 0.20 -4.64 0.59 -0.38 0.54 -0.43 1.17
- -------------------------------------------------------------------------------------------------------------
5-year 6.47 5.44 6.11 5.79 6.21 6.21 6.27 6.06 6.61
- -------------------------------------------------------------------------------------------------------------
Life 4.72 3.87 4.42 4.42 4.50 4.50 4.55 4.38 4.83
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/04 (%)
SHARE CLASS A B C D Z
- -------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- -------------------------------------------------------------------------------------------------------------
6-MONTH (CUMULATIVE) 3.94 -1.00 3.55 -1.45 3.77 2.77 3.73 2.73 4.06
- -------------------------------------------------------------------------------------------------------------
1-year 3.03 -1.86 2.27 -2.67 2.63 1.64 2.62 1.63 3.27
- -------------------------------------------------------------------------------------------------------------
5-year 6.54 5.51 6.20 5.88 6.29 6.29 6.35 6.14 6.67
- -------------------------------------------------------------------------------------------------------------
Life 4.84 3.97 4.56 4.42 4.63 4.63 4.68 4.50 4.95
THE "WITH SALES CHARGE" RETURNS INCLUDE THE MAXIMUM INITIAL SALES CHARGE OF
4.75% FOR CLASS A SHARES, MAXIMUM CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR
CLASS B SHARES AND 1.00% FOR CLASS C AND D SHARES FOR THE FIRST YEAR ONLY. THE
"WITHOUT SALES CHARGE" RETURNS DO NOT INCLUDE THE EFFECT OF SALES CHARGES. IF
THEY HAD, RETURNS WOULD BE LOWER.
ALL RESULTS SHOWN ASSUME REINVESTMENT OF DISTRIBUTIONS. CLASS Z SHARES ARE SOLD
AT NET ASSET VALUE WITH NO RULE 12B-1 FEES. PERFORMANCE FOR DIFFERENT SHARE
CLASSES WILL VARY BASED ON DIFFERENCES IN SALES CHARGES AND FEES ASSOCIATED WITH
EACH CLASS.
Effective October 13, 2003, class D shares were closed to all new investors and
new accounts. Existing class D shareholders will be able to make additional
purchases at any time. In addition, class D initial sales charge of 1.00% is
waived after October 13, 2003.
Performance results reflect any voluntary waivers or reimbursement of fund
expenses by the advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower.
Classes A, B and D (newer class shares) share performance information includes
returns of the fund's class Z shares (the oldest existing fund class) for
periods prior to the inception of the newer class shares. The returns for class
C include the returns of class B prior to 10/13/03, the date on which class C
was initially offered by the fund. The returns shown for class C also include
the performance of class Z prior to the inception of class B (11/01/02). Class Z
share returns are not restated to reflect any expense differential (e.g., Rule
12b-1 fees) between class Z shares and the newer class shares. Had the expense
differential been reflected, the returns for the periods prior to the inception
of classes A, B, C and D would have been lower.
46
[sidebar]
ESTIMATING YOUR ACTUAL EXPENSES
To estimate the expenses that you paid over the period, first you will need your
account balance at the end of the period:
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA FUNDS
SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT
WWW.COLUMBIAFUNDS.COM OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM THEIR BROKERAGE
FIRM, CONTACT YOUR BROKERAGE FIRM TO OBTAIN YOUR ACCOUNT BALANCE
1. DIVIDE YOUR ENDING ACCOUNT BALANCE BY $1,000. FOR EXAMPLE, IF AN ACCOUNT
BALANCE WAS $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6
2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE
PERIOD," LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER
IS IN THE COLUMN LABELED "ACTUAL." MULTIPLY THIS NUMBER BY THE RESULT FROM
STEP 1. YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR
ACCOUNT DURING THE PERIOD
UNDERSTANDING YOUR EXPENSES_____________________________________________________
Columbia National Municipal Bond Fund
As a fund shareholder, you incur two types of costs. There are transaction
costs, which generally include sales charges on purchases and may include
redemption or exchange fees. There are also ongoing costs, which generally
include investment advisory fees, Rule 12b-1 fees, and other fund expenses. The
information on this page is intended to help you understand your ongoing costs
of investing in the fund and to compare these costs with the ongoing costs of
investing in other mutual funds.
ANALYZING YOUR FUND'S EXPENSES BY SHARE CLASS
To illustrate these ongoing costs, we have provided an example and calculated
the expenses paid by investors in each share class during the reporting period.
The information in the following table is based on an initial investment of
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
09/01/04 - 02/28/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
- ----------------------------------------------------------------------------------------------------------------------
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
- ----------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,000.00 1,010.02 1,020.33 4.49 4.51 0.90
- ----------------------------------------------------------------------------------------------------------------------
Class B 1,000.00 1,000.00 1,006.30 1,016.61 8.21 8.25 1.65
- ----------------------------------------------------------------------------------------------------------------------
Class C 1,000.00 1,000.00 1,007.98 1,018.35 6.47 6.51 1.30
- ----------------------------------------------------------------------------------------------------------------------
Class D 1,000.00 1,000.00 1,007.98 1,018.35 6.47 6.51 1.30
- ----------------------------------------------------------------------------------------------------------------------
Class Z 1,000.00 1,000.00 1,011.21 1,021.57 3.24 3.26 0.65
Expenses paid during the period are equal to the fund's annualized expense
ratio, multiplied by the average account value over the period, then multiplied
by the number of days in the fund's most recent fiscal half-year and divided by
365.
Had the Investment Advisor and/or Distributor not reimbursed or waived a portion
of expenses, total return would have been reduced.
It is important to note that the expense amounts shown in the table are meant to
highlight only ongoing costs of investing in the fund and do not reflect any
transactional costs, such as sales charges, redemption or exchange fees.
Therefore, the hypothetical examples provided may not help you determine the
relative total costs of owning shares of different funds. If these transactional
costs were included, your costs would have been higher.
COMPARE WITH OTHER FUNDS
Since all mutual fund companies are required to include the same hypothetical
calculations about expenses in shareholder reports, you can use this information
to compare the ongoing cost of investing in the fund with other funds. To do so,
compare the 5% hypothetical example with the 5% hypothetical examples that
appear in the shareholder reports of other funds. As you compare hypothetical
examples of other funds, it is important to note that hypothetical examples are
meant to highlight the continuing cost of investing in a fund and do not reflect
any transactional costs, such as sales charges or redemption or exchange fees.
47
[sidebar]
SUMMARY
o FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 28, 2005, THE FUND'S CLASS A
SHARES RETURNED 1.00% WITHOUT SALES CHARGE.
o THE FUND'S RETURN WAS LESS THAN THE RETURN FOR ITS BENCHMARK, THE LEHMAN
BROTHERS MUNICIPAL BOND INDEX, BUT ABOVE THE AVERAGE FOR ITS PEER GROUP,
THE LIPPER INTERMEDIATE MUNICIPAL DEBT FUNDS CATEGORY.
o THE FUND'S EMPHASIS ON HIGH QUALITY BONDS, CONTRIBUTIONS FROM NON-RATED
BONDS AND RELATIVELY LIGHT EXPOSURE TO SHORT MATURITIES AIDED PERFORMANCE.
[UP ARROW] [UP ARROW]
LEHMAN BROTHERS
MUNICIPAL BOND
CLASS A SHARES INDEX
1.00% 2.40%
OBJECTIVE
Seeks a high level of income
exempt from federal income tax
by investing primarily in
municipal securities issued by
state and local governments, their
agencies and authorities, as well
as the District of Columbia and
U.S. territories and possessions.
TOTAL NET ASSETS
$11.0 million
NET ASSET VALUE PER SHARE
AS OF 02/28/05 ($)
Class A 10.15
- -----------------------------------------------
Class B 10.15
- -----------------------------------------------
Class C 10.15
- -----------------------------------------------
Class D 10.15
- -----------------------------------------------
Class Z 10.15
DISTRIBUTIONS DECLARED PER SHARE
09/01/04 - 02/28/05 ($)
Class A 0.25
- -----------------------------------------------
Class B 0.21
- -----------------------------------------------
Class C 0.23
- -----------------------------------------------
Class D 0.23
- -----------------------------------------------
Class Z 0.26
DISTRIBUTIONS INCLUDE $0.09 PER SHARE OF TAXABLE REALIZED GAINS.
PORTFOLIO MANAGER'S REPORT______________________________________________________
Columbia National Municipal Bond Fund
For the six-month period ended February 28, 2005, Columbia National Municipal
Bond Fund class A shares returned 1.00% without sales charge. This was less than
the return of its benchmark, the Lehman Brothers Municipal Bond Index, which was
2.40% over the same period. However, the fund beat the average return of the
Lipper Intermediate Municipal Debt Funds Category, which was 0.87%. 1 The fund's
focus on intermediate-maturity bonds, at a time when bonds with longer
maturities provided higher returns, contributed to its underperformance compared
to the fund's benchmark. However, we believe that the fund's emphasis on high
quality bonds, as well as contributions from non-rated bonds and relatively
light exposure to short maturities helped the fund outperform its peer group.
VOLATILITY MARKED MUNICIPAL BOND RETURNS
Overall, municipal bond returns were relatively modest for the period. The
Federal Reserve Board (the Fed) raised short-term interest rates four times
during the period, pushing the federal funds rate from 1.50% to 2.50%. 2
However, intermediate- and longer-term interest rates did not follow suit, in
part, because job growth was not as strong as expected. While the jobs data
helped dampen investor concerns about inflation, a few inflationary signs, such
as rising commodity prices, added volatility to the markets.
CONTINUED EMPHASIS ON QUALITY, GEOGRAPHIC AND SECTOR DIVERSIFICATION
We continued to emphasize high quality, intermediate-maturity bonds while
seeking to increase the fund's geographical and sector diversification. We
reduced the fund's average maturity from just over 9 years at the end of August
to approximately 8.5 years by the end of February, because we felt
intermediate-maturity bonds held less risk of price declines in an environment
where interest rates appeared poised to rise. We also reduced the fund's
duration from 5.5 years to 5.2 years. Duration measures the fund's sensitivity
to changes in interest rates. Typically, we lower duration when we expect
interest rates to rise and lengthen duration when we expect rates to fall. If we
are right, our decision about duration can aid performance. During the reporting
period, our duration decision had mixed results. It did not aid performance
early in the period because intermediate and long-term interest rates actually
declined. But it helped when interest rates began to rise in the final month of
the period. Because we believe that interest rates are likely to move higher
over the short term, we have maintained the fund's lower duration.
1 Lipper Inc., a widely respected data provider in the industry, calculates
an average total return for mutual funds with similar investment
objectives as those of the fund.
2 On March 22, 2005, the federal funds rate was increased to 2.75%.
48
PORTFOLIO QUALITY AS OF 02/28/05 (%)
AAA 82.2
- -----------------------------------------------
AA 10.3
- -----------------------------------------------
A 4.2
- -----------------------------------------------
BBB 1.1
- -----------------------------------------------
Non rated 2.2
Ratings shown in the quality breakdown represent the rating assigned to a
particular bond by one of the following nationally recognized rating agencies:
Standard & Poor's, a division of The McGraw-Hill Companies, Inc., Moody's
Investors Service, Inc. or Fitch Ratings Ltd.
TOP 5 SECTORS AS OF 02/28/05 (%)
Tax-backed 39.6
- -----------------------------------------------
Other 16.0
- -----------------------------------------------
Utilities 15.9
- -----------------------------------------------
Health care 11.0
- -----------------------------------------------
Resource Recovery 3.3
Your fund is actively managed and the sector breakdown of its portfolio will
change over time. Sector breakdown is calculated as a percentage of net assets.
MATURITY BREAKDOWN AS OF 02/28/05 (%)
1-3 years 1.4
- -----------------------------------------------
3-5 years 5.6
- -----------------------------------------------
5-7 years 21.7
- -----------------------------------------------
7-10 years 27.0
- -----------------------------------------------
10-15 years 42.9
- -----------------------------------------------
15-20 years 0.3
- -----------------------------------------------
20-25 years 1.1
Portfolio quality and maturity breakdown are calculated as a percentage of total
investments.
ABOUT DURATION
Duration is a measure, expressed in years, of interest-rate sensitivity. It is
similar to maturity, but because it takes into consideration the entire stream
of future principal and interest payments and how long it will take to collect
them, it is a more complex and more accurate measure of a fund's exposure to
changing interest rates. Because we are active duration managers, we tend to use
duration as a tactical tool to anticipate or respond to interest rate changes.
Because bond prices and interest rates move in opposite directions, we lower
duration when we expect interest rates to rise and we raise duration when we
expect interest rates to fall. This adjustment provides the potential to benefit
performance. If we are wrong and interest rates rise after we lengthen duration,
or fall after we shorten duration, fund performance could be hurt.
________________________________________________________________________________
Columbia National Municipal Bond Fund
The fund's non-rated bonds performed well during the period as investors
appeared willing to accept higher risk in exchange for potentially higher
returns. However, when the fund experienced substantial redemptions late in the
period, we used it as an opportunity to reduce the fund's exposure to
lower-quality bonds and to increase the fund's overall credit quality and its
geographical and sector diversification. In particular, we continued to reduce
the fund's exposure to Oregon and Washington State and increase holdings in
Georgia, New York, Colorado and Kansas, where we saw the potential to add yield
and value to the portfolio while improving liquidity.
POTENTIAL FOR STABLE-TO-IMPROVING MUNICIPAL BOND ENVIRONMENT
We expect the Fed to continue to raise short-term interest rates in 2005 as it
tries to manage inflation in the face of continuing economic growth. That
growth, however, should mean higher tax revenues for most state and local
governments, which would likely result in improved balance sheets. While we do
not expect to see many credit upgrades in coming months, we also don't expect
many downgrades, which points to a relatively stable-to-improving environment
for municipal issuers.
In this environment, we plan to maintain our focus on high quality
intermediate-maturity bonds. We also plan to continue to reduce the fund's small
position in bonds subject to the alternative minimum tax.
The fund will be closed to new investments after the close of business on April
29, 2005. The fund's trustees have approved its liquidation, which will take
effect later this year, pending shareholder approval.
Susan Sanderson has managed Columbia National
Municipal Bond Fund since December 2003 and has been
with the advisor and its predecessors or affiliate
organizations since 1985.
/s/ Susan Sanderson
Tax-exempt investing offers current tax-exempt income, but it also involves
special risks. The value of the fund will be affected by interest rate changes
and the creditworthiness of issues held in the fund. When interest rates go up,
bond prices generally drop and vice versa. Interest income from certain
tax-exempt bonds may be subject to certain state and local taxes and, if
applicable, the alternative minimum tax. Capital gains are not exempt from
income taxes.
49
[sidebar]
PERFORMANCE OF A $10,000 INVESTMENT
03/01/95 - 02/28/05 ($)
SALES CHARGE WITHOUT WITH
- -----------------------------------------------
Class A 17,276 16,461
- -----------------------------------------------
Class B 16,975 16,975
- -----------------------------------------------
Class C 17,062 17,062
- -----------------------------------------------
Class D 17,122 16,952
- -----------------------------------------------
Class Z 17,411 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, when
redeemed, may be worth more or less than the original cost. Please visit
www.columbiafunds.com for daily and most recent month-end performance updates.
PERFORMANCE INFORMATION_________________________________________________________
Columbia Oregon Municipal Bond Fund
VALUE OF A $10,000 INVESTMENT 03/01/95 - 02/28/05
[MOUNTAIN CHART]
LEHMAN BROTHERS
CLASS A SHARES GENERAL
WITHOUT SALES CLASS A SHARES OBLIGATION BOND
CHARGE WITH SALES CHARGE INDEX
-------------- ----------------- ---------------
03/95 10000 9525 10000
10105 9625 10135
10116 9636 10142
10365 9873 10444
10282 9794 10373
10370 9878 10493
10502 10003 10626
10573 10070 10694
10696 10188 10816
10845 10330 10968
10908 10390 11055
10971 10450 11162
10916 10398 11111
10802 10289 10987
10757 10246 10949
10750 10239 10932
10857 10342 11042
10948 10428 11147
10950 10429 11146
11077 10550 11283
11187 10656 11415
11362 10822 11627
11316 10779 11581
11346 10807 11612
11437 10893 11718
11315 10778 11566
11390 10849 11657
11523 10976 11830
11627 11075 11958
11924 11357 12268
11847 11285 12159
11972 11403 12297
12030 11459 12365
12087 11513 12423
12262 11680 12599
12380 11792 12729
12365 11778 12739
12355 11768 12751
12313 11728 12683
12492 11898 12891
12519 11924 12938
12548 11952 12969
12737 12132 13174
12895 12283 13350
12873 12262 13353
12912 12299 13397
12946 12331 13441
13109 12486 13617
13008 12390 13548
13016 12397 13553
13053 12433 13591
12935 12320 13515
12751 12145 13318
12801 12193 13371
12690 12088 13292
12697 12094 13304
12566 11969 13188
12692 12089 13323
12602 12003 13239
12523 11929 13190
12629 12029 13322
12891 12279 13591
12822 12213 13521
12742 12137 13450
13051 12431 13795
13228 12600 13978
13429 12791 14177
13358 12723 14105
13504 12862 14253
13591 12946 14353
13896 13236 14692
14054 13387 14852
14094 13424 14896
14208 13533 15028
14054 13387 14871
14205 13530 15021
14294 13615 15115
14491 13803 15329
14725 14025 15576
14685 13987 15542
14871 14165 15700
14700 14002 15562
14527 13837 15438
14764 14062 15691
14936 14227 15882
14668 13971 15579
14955 14245 15900
15049 14335 15987
15227 14504 16166
15431 14698 16367
15613 14871 16553
15955 15197 16888
15663 14919 16614
15544 14806 16533
15850 15097 16857
15788 15038 16828
16033 15272 17060
16020 15259 17093
16132 15366 17204
16515 15730 17584
16424 15644 17500
15838 15085 16919
15941 15183 17076
16420 15640 17566
16300 15526 17448
16472 15689 17591
16607 15818 17716
16670 15878 17805
16975 16169 18085
16851 16051 18036
16431 15651 17630
16428 15648 17605
16492 15709 17674
16680 15888 17888
17005 16198 18231
17070 16259 18319
17190 16373 18463
17035 16226 18303
17232 16414 18502
17353 16529 18641
02/05 17276 16461 18563
The graph and table do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares. The Lehman
Brothers General Obligation Bond Index is an unmanaged index that represents
average market-weighted performance of general obligation securities that have
been issued in the last five years with maturities greater than one year. Unlike
the fund, indices are not investments, do not incur fees or expenses and are not
professionally managed. It is not possible to invest directly in an index.
Securities in the fund may not match those in an index.
AVERAGE ANNUAL TOTAL RETURN AS OF 02/28/05 (%)
SHARE CLASS A B C D Z
- ---------------------------------------------------------------------------------------------------------------
INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 07/02/84
- ---------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- ---------------------------------------------------------------------------------------------------------------
6-month (cumulative) 1.56 -3.26 1.17 -3.80 1.37 0.37 1.35 0.36 1.68
- ---------------------------------------------------------------------------------------------------------------
1- year 1.74 -3.09 0.96 -3.93 1.36 0.38 1.33 0.35 1.99
- ---------------------------------------------------------------------------------------------------------------
5-year 6.46 5.44 6.09 5.77 6.20 6.20 6.27 6.05 6.63
- ---------------------------------------------------------------------------------------------------------------
10-year 5.62 5.11 5.43 5.43 5.49 5.49 5.53 5.42 5.70
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/04 (%)
SHARE CLASS A B C D Z
- ---------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- ---------------------------------------------------------------------------------------------------------------
6-month (cumulative) 4.50 -0.46 4.09 -0.91 4.31 3.31 4.28 3.28 4.63
- ---------------------------------------------------------------------------------------------------------------
1- year 3.78 -1.15 2.99 -2.00 3.36 2.37 3.36 2.36 4.03
- ---------------------------------------------------------------------------------------------------------------
5-year 6.47 5.43 6.12 5.80 6.21 6.21 6.29 6.07 6.62
- ---------------------------------------------------------------------------------------------------------------
10-year 6.08 5.57 5.91 5.91 5.96 5.96 5.99 5.88 6.16
THE "WITH SALES CHARGE" RETURNS INCLUDE THE MAXIMUM INITIAL SALES CHARGE OF
4.75% FOR CLASS A SHARES, MAXIMUM CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR
CLASS B SHARES AND 1.00% FOR CLASS C AND D SHARES FOR THE FIRST YEAR ONLY. THE
"WITHOUT SALES CHARGE" RETURNS DO NOT INCLUDE THE EFFECT OF SALES CHARGES. IF
THEY HAD, RETURNS WOULD BE LOWER.
ALL RESULTS SHOWN ASSUME REINVESTMENT OF DISTRIBUTIONS. CLASS Z SHARES ARE SOLD
AT NET ASSET VALUE WITH NO RULE 12B-1 FEES. PERFORMANCE FOR DIFFERENT SHARE
CLASSES WILL VARY BASED ON DIFFERENCES IN SALES CHARGES AND FEES ASSOCIATED WITH
EACH CLASS.
Effective October 13, 2003, class D shares were closed to all new investors and
new accounts. Existing class D shareholders will be able to make additional
purchases at any time. In addition, class D initial sales charge of 1.00% is
waived after October 13, 2003.
Performance results reflect any voluntary waivers or reimbursement of fund
expenses by the advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower.
Classes A, B and D (newer class shares) share performance information includes
returns of the fund's class Z shares (the oldest existing fund class) for
periods prior to the inception of the newer class shares. The returns for class
C include the returns of class B prior to 10/13/03, the date on which class C
was initially offered by the fund. The returns shown for class C also include
the performance of class Z prior to the inception of class B (11/01/02). Class Z
share returns are not restated to reflect any expense differential (e.g., Rule
12b-1 fees) between class Z shares and the newer class shares. Had the expense
differential been reflected, the returns for the periods prior to the inception
of classes A, B, C and D would have been lower.
50
ESTIMATING YOUR ACTUAL EXPENSES
To estimate the expenses that you paid over the period, first you will need your
account balance at the end of the period:
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA FUNDS
SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT
WWW.COLUMBIAFUNDS.COM OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM THEIR BROKERAGE
FIRM, CONTACT YOUR BROKERAGE FIRM TO OBTAIN YOUR ACCOUNT BALANCE
1. DIVIDE YOUR ENDING ACCOUNT BALANCE BY $1,000. FOR EXAMPLE, IF AN ACCOUNT
BALANCE WAS $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6
2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE
PERIOD," LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER
IS IN THE COLUMN LABELED "ACTUAL." MULTIPLY THIS NUMBER BY THE RESULT FROM
STEP 1. YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR
ACCOUNT DURING THE PERIOD
UNDERSTANDING YOUR EXPENSES_____________________________________________________
Columbia Oregon Municipal Bond Fund
As a fund shareholder, you incur two types of costs. There are transaction
costs, which generally include sales charges on purchases and may include
redemption or exchange fees. There are also ongoing costs, which generally
include investment advisory fees, Rule 12b-1 fees, and other fund expenses. The
information on this page is intended to help you understand your ongoing costs
of investing in the fund and to compare these costs with the ongoing costs of
investing in other mutual funds.
ANALYZING YOUR FUND'S EXPENSES BY SHARE CLASS
To illustrate these ongoing costs, we have provided an example and calculated
the expenses paid by investors in each share class during the reporting period.
The information in the following table is based on an initial investment of
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
09/01/04 - 02/28/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
- ------------------------------------------------------------------------------------------------------------------------
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
- ------------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,000.00 1,015.62 1,020.28 4.55 4.56 0.91
- ------------------------------------------------------------------------------------------------------------------------
Class B 1,000.00 1,000.00 1,011.70 1,016.56 8.28 8.30 1.66
- ------------------------------------------------------------------------------------------------------------------------
Class C 1,000.00 1,000.00 1,013.69 1,018.30 6.54 6.56 1.31
- ------------------------------------------------------------------------------------------------------------------------
Class D 1,000.00 1,000.00 1,013.49 1,018.30 6.54 6.56 1.31
- ------------------------------------------------------------------------------------------------------------------------
Class Z 1,000.00 1,000.00 1,016.81 1,021.52 3.30 3.31 0.66
Expenses paid during the period are equal to the fund's annualized expense
ratio, multiplied by the average account value over the period, then multiplied
by the number of days in the fund's most recent fiscal half-year and divided by
365.
Had the Distributor not waived a portion of expenses for class C and class D,
total return would have been reduced.
It is important to note that the expense amounts shown in the table are meant to
highlight only ongoing costs of investing in the fund and do not reflect any
transactional costs, such as sales charges, redemption or exchange fees.
Therefore, the hypothetical examples provided may not help you determine the
relative total costs of owning shares of different funds. If these transactional
costs were included, your costs would have been higher.
COMPARE WITH OTHER FUNDS
Since all mutual fund companies are required to include the same hypothetical
calculations about expenses in shareholder reports, you can use this information
to compare the ongoing cost of investing in the fund with other funds. To do so,
compare the 5% hypothetical example with the 5% hypothetical examples that
appear in the shareholder reports of other funds. As you compare hypothetical
examples of other funds, it is important to note that hypothetical examples are
meant to highlight the continuing cost of investing in a fund and do not reflect
any transactional costs, such as sales charges or redemption or exchange fees.
51
[sidebar]
SUMMARY
o FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 28, 2005, THE FUND'S CLASS A
SHARES RETURNED 1.56% WITHOUT SALES CHARGE.
o THE FUND'S RETURN WAS LESS THAN THE RETURN FOR ITS BENCHMARK, THE LEHMAN
BROTHERS GENERAL OBLIGATION BOND INDEX, AND THE AVERAGE FOR ITS PEER
GROUP, THE LIPPER OREGON MUNICIPAL DEBT FUNDS CATEGORY.
o THE FUND'S FOCUS ON MUNICIPAL BONDS WITH INTERMEDIATE MATURITIES, AT A
TIME WHEN BONDS WITH LONGER MATURITIES PROVIDED HIGHER RETURNS, DETRACTED
FROM PERFORMANCE.
[UP ARROW] [UP ARROW]
LEHMAN BROTHERS
GENERAL OBLIGATION
CLASS A SHARES BOND INDEX
1.56% 1.85%
OBJECTIVE
Seeks a high level of income
exempt from federal and
Oregon income tax by investing
primarily in municipal securities
issued by the state of Oregon.
TOTAL NET ASSETS
$425.7 million
NET ASSET VALUE PER SHARE
AS OF 02/28/05 ($)
Class A 12.38
- -----------------------------------------------
Class B 12.38
- -----------------------------------------------
Class C 12.38
- -----------------------------------------------
Class D 12.38
- -----------------------------------------------
Class Z 12.38
DISTRIBUTIONS DECLARED PER SHARE
09/01/04 - 02/28/05 ($)
Class A 0.26
- -----------------------------------------------
Class B 0.21
- -----------------------------------------------
Class C 0.24
- -----------------------------------------------
Class D 0.24
- -----------------------------------------------
Class Z 0.28
DISTRIBUTIONS INCLUDE $0.04 PER SHARE OF TAXABLE REALIZED GAINS.
PORTFOLIO MANAGER'S REPORT______________________________________________________
Columbia Oregon Municipal Bond Fund
For the six-month period ended February 28, 2005, Columbia Oregon Municipal Bond
Fund class A shares returned 1.56% without sales charge. This was less than the
fund's benchmark, the Lehman Brothers General Obligation Bond Index, which
returned 1.85%. The fund also trailed its peer group, the Lipper Oregon
Municipal Debt Funds Category, which returned an average of 1.95%. 1 The fund's
focus on intermediate-maturity bonds, at a time when bonds with longer
maturities provided higher returns, detracted from performance.
VOLATILITY MARKED MUNICIPAL BOND RETURNS
Municipal bond returns fluctuated over the past six months. As a result, returns
for the period were relatively modest. The Federal Reserve Board (the Fed)
raised short-term interest rates four times during the period, pushing the
federal funds rate from 1.50% to 2.50%. 2 However, intermediate- and longer-term
interest rates did not follow suit, in part because job growth was not as strong
as expected. While the jobs data helped dampen investor concerns about
inflation, a few inflationary signs, such as rising commodity prices, added some
volatility to the markets. As a result, investors moved in and out of bonds in
an attempt to take advantage of short-term price fluctuations.
OREGON'S GROWTH IMPROVES, BUT LAGS OTHER STATES
Oregon, like many other states, was helped by increased revenues resulting from
an improving economy. However, the state's growth lagged the rest of the
country, in part because it is still recovering from the downturn in the
technology industry. Although state revenues have increased, we believe it could
be some time before the state can sufficiently rebuild the reserves it needs to
warrant an upgrade in its bond rating.
HOSPITAL AND NON-RATED BONDS BENEFITED THE FUND
The fund continued to benefit from holding hospital and lower-rated credits. As
the financial outlook improved for hospitals, their bonds delivered solid
returns. The fund's high-yield bonds also performed well. Although one issuer,
the owner of an apartment complex, ran into financial difficulties, we were able
to help negotiate the sale of the property, and redeploy the proceeds from the
bonds into higher-quality, interest-earning assets. However, the picture for
multifamily housing appears somewhat brighter as occupancy levels and profits
have improved a little in recent months.
1 Lipper Inc., a widely respected data provider in the industry, calculates
an average total return for mutual funds with similar investment
objectives as those of the fund.
2 On March 22, 2005, the federal funds rate was increased to 2.75%.
52
[sidebar]
PORTFOLIO QUALITY AS OF 02/28/05 (%)
AAA 45.4
- -----------------------------------------------
AA 35.5
- -----------------------------------------------
A 4.9
- -----------------------------------------------
BBB 4.2
- -----------------------------------------------
Non rated 10.0
Ratings shown in the quality breakdown represent the rating assigned to a
particular bond by one of the following nationally recognized rating agencies:
Standard & Poor's, a division of The McGraw-Hill Companies, Inc., Moody's
Investors Service, Inc. or Fitch Ratings Ltd.
TOP 5 SECTORS AS OF 02/28/05 (%)
Tax-backed 41.3
- -----------------------------------------------
Other 17.5
- -----------------------------------------------
Health care 12.3
- -----------------------------------------------
Utilities 8.0
- -----------------------------------------------
Housing 7.8
Your fund is actively managed and the sector breakdown of its portfolio will
change over time. Sector breakdown and holdings discussed are calculated as a
percentage of net assets.
HOLDINGS DISCUSSED IN THIS REPORT
AS OF 02/28/05 (%)
Oregon Aquarium
(Oregon State Health,
Housing Educational &
Cultural Facilities Authority) 0.1
MATURITY BREAKDOWN AS OF 02/28/05 (%)
0-1 years 0.3
- -----------------------------------------------
1-3 years 2.2
- -----------------------------------------------
3-5 years 3.9
- -----------------------------------------------
5-7 years 16.4
- -----------------------------------------------
7-10 years 29.6
- -----------------------------------------------
10-15 years 30.1
- -----------------------------------------------
15-20 years 12.0
- -----------------------------------------------
20-25 years 3.1
- -----------------------------------------------
25+ years 2.4
Portfolio quality and maturity breakdown are calculated as a percentage of total
investments.
________________________________________________________________________________
Columbia Oregon Municipal Bond Fund
The bonds of Oregon Aquarium continued to disappoint us. The Aquarium has
experienced severe cash shortfalls as a result of declines in tourism and
overspending to build new exhibits. We continue to work with the Aquarium to
restructure the debt or find other ways to enhance the value of the outstanding
bonds.
POTENTIAL FOR STABLE-TO-IMPROVING MUNICIPAL BOND ENVIRONMENT
We expect the Fed to continue to raise short-term interest rates in 2005 at a
measured pace as it tries to manage inflation in the face of continuing economic
growth. That growth, however, should mean higher tax revenues for most state and
local governments, which would likely result in improved balance sheets and a
relatively stable-to-improving rating environment for municipal bonds. We
believe that Oregon may continue to have some budget problems. Yet, we expect
its bonds to benefit from gradually increasing revenues, somewhat lower issuance
and strong demand.
In this environment, we expect to maintain the fund's focus on the intermediate
maturity range, which we believe offers the best opportunity in an improving
economic climate. Also, in an effort to increase net tax-free returns to all
shareholders, we plan to continue to reduce the fund's exposure to bonds subject
to the alternative minimum tax.
[Photo of Brian McGreevy] Brian McGreevy has managed the Columbia Oregon
Municipal Bond Fund since December 2003 and has
been with the advisor and its predecessors or
affiliate organizations since 1994.
/s/ Brian McGreevy
Tax-exempt investing offers current tax-exempt income, but it also involves
special risks. The value of the fund will be affected by interest rate changes
and the creditworthiness of issues held in the fund. When interest rates go up,
bond prices generally drop and vice versa. Interest income from certain
tax-exempt bonds may be subject to certain state and local taxes and, if
applicable, the alternative minimum tax. Capital gains are not exempt from
income taxes.
Single-state municipal bond funds pose additional risks due to limited
geographical diversification.
53
[sidebar]
PERFORMANCE OF A $10,000 INVESTMENT
03/01/95 - 02/28/05 ($)
SALES CHARGE WITHOUT WITH
- -----------------------------------------------
Class A 20,838 19,853
- -----------------------------------------------
Class B 20,452 20,452
- -----------------------------------------------
Class C 20,482 20,482
- -----------------------------------------------
Class D 20,532 20,334
- -----------------------------------------------
Class Z 20,972 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, when
redeemed, may be worth more or less than the original cost. Please visit
www.columbiafunds.com for daily and most recent month-end performance updates.
PERFORMANCE INFORMATION_________________________________________________________
Columbia High Yield Fund
VALUE OF A $10,000 INVESTMENT 03/01/95 - 02/28/05
[MOUNTAIN CHART]
CLASS A SHARES CLASS A SHARES MERRILL LYNCH US
WITHOUT SALES WITH SALES HIGH YIELD, CASH
CHARGE CHARGE PAY ONLY INDEX
-------------- -------------- ----------------
03/95 10000 9525 10000
10091 9612 10139
10317 9827 10376
10578 10076 10700
10651 10145 10781
10798 10285 10904
10817 10304 10971
10993 10471 11096
11138 10609 11175
11265 10730 11284
11446 10902 11466
11605 11054 11647
11644 11090 11664
11512 10965 11633
11496 10950 11639
11506 10960 11723
11538 10990 11793
11624 11072 11873
11845 11282 11995
12050 11477 12253
12182 11603 12388
12438 11847 12638
12526 11931 12736
12636 12036 12834
12829 12219 13013
12635 12035 12869
12784 12177 13016
13091 12469 13278
13256 12626 13480
13612 12966 13804
13600 12954 13780
13782 13128 14009
13770 13116 14102
13927 13265 14236
14116 13446 14371
14346 13665 14585
14431 13746 14645
14520 13831 14771
14593 13900 14840
14638 13943 14944
14742 14042 15019
14922 14213 15104
14330 13649 14452
14583 13891 14481
14513 13824 14243
14992 14280 14891
14997 14284 14896
15181 14460 15043
15098 14381 14929
15277 14552 15057
15386 14655 15292
15187 14466 15187
15140 14421 15158
15125 14407 15181
15040 14326 15026
15024 14310 14969
15027 14313 14880
15272 14546 15050
15353 14624 15128
15274 14549 15053
15288 14562 15066
15201 14479 14855
15271 14546 14860
15262 14537 14696
15582 14842 14947
15723 14976 15055
15988 15229 15239
15988 15229 15150
15854 15101 14706
15627 14885 14246
16060 15297 14555
16611 15822 15423
16751 15955 15666
16663 15872 15460
16623 15834 15291
16732 15937 15585
16584 15797 15264
16785 15988 15500
17003 16196 15651
16338 15562 14647
16899 16096 15078
17341 16518 15568
17126 16313 15458
17229 16411 15544
17072 16261 15395
17233 16414 15761
17314 16491 16012
17279 16458 15925
16840 16040 14793
16561 15774 14204
16818 16019 14559
16752 15956 14327
16730 15935 14206
17202 16385 15053
17315 16493 15282
17466 16636 15722
17604 16768 15925
17907 17056 16337
18313 17443 17255
18328 17457 17442
18552 17670 17918
18199 17335 17661
18321 17451 17893
18719 17830 18371
18928 18029 18745
19044 18139 19004
19249 18335 19445
19434 18511 19748
19508 18581 19740
19676 18741 19879
19503 18576 19735
19120 18212 19420
19287 18371 19703
19592 18661 19973
19952 19004 20335
20257 19295 20617
20541 19565 21009
20551 19575 21221
20627 19647 21537
20586 19608 21520
02/05 20838 19853 21820
The graph and table do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares. The Merrill
Lynch US High Yield, Cash Pay Only Index is an unmanaged index that tracks the
performance of non-investment-grade corporate bonds. Unlike the fund, indices
are not investments, do not incur fees or expenses and are not professionally
managed. It is not possible to invest directly in an index. Securities in the
fund may not match those in an index.
AVERAGE ANNUAL TOTAL RETURN AS OF 02/28/05 (%)
SHARE CLASS A B C D Z
- -----------------------------------------------------------------------------------------------------------------
INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 10/01/93
- -----------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- -----------------------------------------------------------------------------------------------------------------
6-month (cumulative) 4.42 -0.50 4.04 -0.96 4.12 3.12 4.12 3.05 4.54
- -----------------------------------------------------------------------------------------------------------------
1-year 6.80 1.70 6.00 1.00 6.19 5.19 6.16 5.08 7.05
- -----------------------------------------------------------------------------------------------------------------
5-year 6.38 5.35 5.99 5.68 6.02 6.02 6.07 5.86 6.52
- -----------------------------------------------------------------------------------------------------------------
10-year 7.62 7.10 7.42 7.42 7.43 7.43 7.46 7.36 7.69
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/04 (%)
SHARE CLASS A B C D Z
- -----------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- -----------------------------------------------------------------------------------------------------------------
6-month (cumulative) 6.94 1.90 6.54 1.54 6.64 5.64 6.62 5.50 7.07
- -----------------------------------------------------------------------------------------------------------------
1-year 7.16 2.02 6.36 1.36 6.53 5.53 6.51 5.43 7.42
- -----------------------------------------------------------------------------------------------------------------
5-year 6.08 5.06 5.71 5.41 5.74 5.74 5.79 5.59 6.21
- -----------------------------------------------------------------------------------------------------------------
10-year 7.94 7.42 7.75 7.75 7.76 7.76 7.79 7.68 8.00
THE "WITH SALES CHARGE" RETURNS INCLUDE THE MAXIMUM INITIAL SALES CHARGE OF
4.75% FOR CLASS A SHARES, MAXIMUM CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR
CLASS B SHARES AND 1.00% FOR CLASS C AND D SHARES FOR THE FIRST YEAR ONLY. THE
"WITHOUT SALES CHARGE" RETURNS DO NOT INCLUDE THE EFFECT OF SALES CHARGES. IF
THEY HAD, RETURNS WOULD HAVE BEEN LOWER.
ALL RESULTS SHOWN ASSUME REINVESTMENT OF DISTRIBUTIONS. CLASS Z SHARES ARE SOLD
AT NET ASSET VALUE WITH NO RULE 12B-1 FEES. PERFORMANCE FOR DIFFERENT SHARE
CLASSES WILL VARY BASED ON DIFFERENCES IN SALES CHARGES AND FEES ASSOCIATED WITH
EACH CLASS.
Effective October 13, 2003, class D shares were closed to all new investors and
new accounts. Existing class D shareholders will be able to make additional
purchases at any time. In addition, class D initial sales charge of 1.00% is
waived after October 13, 2003.
Performance results reflect any voluntary waivers or reimbursement of fund
expenses by the advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower.
Classes A, B and D (newer class shares) share performance information includes
returns of the fund's class Z shares (the oldest existing fund class) for
periods prior to the inception of the newer class shares. The returns for class
C include the returns of class B prior to 10/13/03, the date on which class C
was initially offered by the fund. The returns shown for class C also include
the performance of class Z prior to the inception of class B (11/01/02). Class Z
share returns are not restated to reflect any expense differential (e.g., Rule
12b-1 fees) between class Z shares and the newer class shares. Had the expense
differential been reflected, the returns for the periods prior to the inception
of classes A, B, C and D would have been lower.
54
[sidebar]
ESTIMATING YOUR ACTUAL EXPENSES
To estimate the expenses that you paid over the period, first you will need your
account balance at the end of the period:
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA FUNDS
SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT
WWW.COLUMBIAFUNDS.COM OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM THEIR BROKERAGE
FIRM, CONTACT YOUR BROKERAGE FIRM TO OBTAIN YOUR ACCOUNT BALANCE
1. DIVIDE YOUR ENDING ACCOUNT BALANCE BY $1,000. FOR EXAMPLE, IF AN ACCOUNT
BALANCE WAS $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6
2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE
PERIOD," LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER
IS IN THE COLUMN LABELED "ACTUAL." MULTIPLY THIS NUMBER BY THE RESULT FROM
STEP 1. YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR
ACCOUNT DURING THE PERIOD
UNDERSTANDING YOUR EXPENSES_____________________________________________________
Columbia High Yield Fund
As a fund shareholder, you incur two types of costs. There are transaction
costs, which generally include sales charges on purchases and may include
redemption or exchange fees. There are also ongoing costs, which generally
include investment advisory fees, Rule 12b-1 fees, and other fund expenses. The
information on this page is intended to help you understand your ongoing costs
of investing in the fund and to compare these costs with the ongoing costs of
investing in other mutual funds.
ANALYZING YOUR FUND'S EXPENSES BY SHARE CLASS
To illustrate these ongoing costs, we have provided an example and calculated
the expenses paid by investors in each share class during the reporting period.
The information in the following table is based on an initial investment of
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
09/01/04 - 02/28/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
- ---------------------------------------------------------------------------------------------------------------------
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
- ---------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,000.00 1,044.18 1,019.98 4.92 4.86 0.97
- ---------------------------------------------------------------------------------------------------------------------
Class B 1,000.00 1,000.00 1,040.42 1,016.27 8.70 8.60 1.72
- ---------------------------------------------------------------------------------------------------------------------
Class C 1,000.00 1,000.00 1,041.21 1,017.01 7.95 7.85 1.57
- ---------------------------------------------------------------------------------------------------------------------
Class D 1,000.00 1,000.00 1,041.21 1,017.01 7.95 7.85 1.57
- ---------------------------------------------------------------------------------------------------------------------
Class Z 1,000.00 1,000.00 1,045.42 1,021.22 3.65 3.61 0.72
Expenses paid during the period are equal to the fund's annualized expense
ratio, multiplied by the average account value over the period, then multiplied
by the number of days in the fund's most recent fiscal half-year and divided by
365.
Had the Fund's Distributor not waived a portion of expenses for class C and
class D, total return would have been reduced.
It is important to note that the expense amounts shown in the table are meant to
highlight only ongoing costs of investing in the fund and do not reflect any
transactional costs, such as sales charges, redemption or exchange fees.
Therefore, the hypothetical examples provided may not help you determine the
relative total costs of owning shares of different funds. If these transactional
costs were included, your costs would have been higher.
COMPARE WITH OTHER FUNDS
Since all mutual fund companies are required to include the same hypothetical
calculations about expenses in shareholder reports, you can use this information
to compare the ongoing cost of investing in the fund with other funds. To do so,
compare the 5% hypothetical example with the 5% hypothetical examples that
appear in the shareholder reports of other funds. As you compare hypothetical
examples of other funds, it is important to note that hypothetical examples are
meant to highlight the continuing cost of investing in a fund and do not reflect
any transactional costs, such as sales charges or redemption or exchange fees.
55
[sidebar]
SUMMARY
o FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 28, 2005, THE FUND'S CLASS A
SHARES RETURNED 4.42% WITHOUT SALES CHARGE.
o THE FUND'S EXPOSURE TO LOWER QUALITY BONDS WAS LESS THAN ITS BENCHMARK'S
EXPOSURE, AND, WE BELIEVE, LESS THAN ITS PEER GROUP. AS A RESULT, THE FUND
UNDERPERFORMED WHEN LOW QUALITY BONDS LED A HIGH YIELD RALLY LATE IN 2004.
o THE FUND'S STRATEGY IS TO FOCUS ON HIGHER QUALITY SECURITIES, A PRUDENT
APPROACH THAT HAS SERVED SHAREHOLDERS WELL OVER THE LONG TERM.
[UP ARROW] [UP ARROW]
MERRILL LYNCH US
HIGH YIELD, CASH
CLASS A SHARES PAY ONLY INDEX
4.42% 7.32%
OBJECTIVE
Seeks a high level of income,
with capital appreciation as a
secondary goal, by investing in
non-investment-grade,
corporate debt securities.
TOTAL NET ASSETS
$1,770.2 million
NET ASSET VALUE PER SHARE
AS OF 02/28/05 ($)
Class A 8.81
- -----------------------------------------------
Class B 8.81
- -----------------------------------------------
Class C 8.81
- -----------------------------------------------
Class D 8.81
- -----------------------------------------------
Class Z 8.81
DISTRIBUTIONS DECLARED PER SHARE
09/01/04 - 02/28/05 ($)
Class A 0.26
- -----------------------------------------------
Class B 0.23
- -----------------------------------------------
Class C 0.23
- -----------------------------------------------
Class D 0.23
- -----------------------------------------------
Class Z 0.27
PORTFOLIO MANAGERS' REPORT______________________________________________________
Columbia High Yield Fund
For the six-month period ended February 28, 2005, Columbia High Yield Fund class
A shares returned 4.42% without sales charge. The fund lagged the Merrill Lynch
US High Yield, Cash Pay Only Index, which returned 7.32%, and the average return
of its peer group, the Lipper High Current Yield Funds Category, which was
7.02%. 1 We believe that the fund underperformed relative to its benchmark and
peer group because it emphasized higher quality credits at a time when investors
favored lower quality segments of the market. However, we will continue to
emphasize quality pursuant to the longstanding strategy of the fund.
CORPORATE BALANCE SHEETS IMPROVED, INTEREST RATES DECLINED
A strong economy enabled companies in the high-yield universe to improve their
cash flows and to reduce their debt. As a result, corporate balance sheets
improved and default rates continued to decline. The Moody's trailing 12-month
issuer-based default rate--a widely monitored indicator of corporate credit
quality--is now just 3%, down from 5% at the beginning of 2004 and nearly 11%
three years ago.
Although the Federal Reserve Board pushed short-term rates higher, long-term
interest rates actually declined during the period. This favorable development
surprised many market observers, which helped explain the strength of the
high-yield rally in late 2004. The fund participated in this rally, but,
consistent with its investment strategy, it did not have much exposure to the
lower quality credits that led the rally. The CCC index was up 12.0% for the
period, far above the 4.7% gain posted by the higher-quality intermediate BB
index.
ENERGY AND TELECOMMUNICATIONS HELPED BOOST PERFORMANCE
The energy and telecommunications industries were strong performers during the
period, and the fund added to its holdings in both categories. In the energy
sector we purchased bonds issued by Hornbeck Offshore Services and MarkWest
Energy Partners. Hornbeck operates a fleet of vessels that support oil
exploration activity predominantly in the Gulf of Mexico. MarkWest is engaged in
gathering, processing, transporting and storing natural gas and crude oil. In
the telecommunication sector we added Rogers Wireless, the largest wireless
provider in Canada. We believe Rogers has the potential to improve its financial
position over the next few years because of rapid revenue growth and reduced
competition.
Steel companies rebounded with the economy in 2004, benefiting fund holding
Russel Metals. One of our Select Medical bonds was another strong performer for
the fund over the last six months. When the company was taken private, the
prices at which the bonds were tendered for was above where they had been
trading.
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.
56
[sidebar]
PORTFOLIO QUALITY AS OF 02/28/05 (%)
Baa 1.0
- -----------------------------------------------
Ba 61.1
- -----------------------------------------------
B 35.4
- -----------------------------------------------
Caa 2.5
Portfolio quality is calculated as a percentage of total investments.
Ratings shown in the quality breakdown represent the lowest rating assigned to a
particular bond by one of the following nationally recognized rating agencies:
Standard & Poor's, a division of The McGraw-Hill Companies, Inc., Moody's
Investors Service, Inc. or Fitch Ratings Ltd.
TOP 5 SECTORS AS OF 02/28/05 (%)
Consumer Cyclical 20.5
- -----------------------------------------------
Consumer Non-Cyclical 17.5
- -----------------------------------------------
Industrials 15.9
- -----------------------------------------------
Communications 14.8
- -----------------------------------------------
Energy 14.1
HOLDINGS DISCUSSED IN THIS REPORT
AS OF 02/28/05 (%)
Hornbeck Offshore Services 0.6
- -----------------------------------------------
MarkWest Energy Partners 0.5
- -----------------------------------------------
Rogers Wireless 1.3
- -----------------------------------------------
Russel Metals 0.5
- -----------------------------------------------
Select Medical 0.5
- -----------------------------------------------
Allied Waste North America 1.0
MATURITY BREAKDOWN AS OF 02/28/05 (%)
0-3 years 0.1
- -----------------------------------------------
3-5 years 13.3
- -----------------------------------------------
5-10 years 82.1
- -----------------------------------------------
10-15 years 4.5
Your fund is actively managed and the sector breakdown of its portfolio will
change over time. Sector breakdown, holdings discussed and maturity breakdown
are calculated as a percentage of net assets.
________________________________________________________________________________
Columbia High Yield Fund
ALLIED WASTE DISAPPOINTED
One specific disappointment during the period was Allied Waste, a
non-hazardous solid waste management company. Allied had difficulty controlling
its expenses and produced several quarters of substandard earnings. Its rating
was downgraded to Caa by Moody's in late 2004. We sold a portion of the holding,
but the issue remains in the portfolio because we believe that the company has
the potential to generate the free cash flow necessary to reduce its debt
burden.
EMPHASIS ON HIGHER QUALITY BONDS GOING FORWARD
Looking ahead, we believe that the fund is well positioned with its emphasis on
higher quality high-yield bonds. With the current yield advantage of lower
quality bonds close to a historical low, investors no longer enjoy a significant
yield premium for delving into riskier areas of the market. As the yield spread
between lower quality and higher quality bonds narrows, we believe higher
quality companies have the potential to perform well for the fund.
[Photo of Jeffrey L. Rippey] Jeffrey L. Rippey, CFA, has managed or co-managed
Columbia High Yield Fund since its inception in
October 1993 and has been with the advisor or its
predecessors or affiliate organizations since
1981.
/s/ Jeffrey L. Rippey
[Photo of Kurt M. Havnaer] Kurt M. Havnaer, CFA, has co-managed the fund
since February 2000. He has been associated with
the advisor or its predecessors or affiliate
organizations since 1996.
/s/ Kurt M. Havnaer
Investing in fixed-income securities may involves certain risks, including the
credit quality of individual issuers, possible prepayments, market or economic
developments and yields and share price fluctuations due to changes in interest
rates. When interest rates go up, bond prices typically drop, and vice versa.
Investing in high yield securities (commonly known as "junk bonds") offers the
potential for high current income and attractive total return but involves
certain risks. Changes in economic conditions or other circumstances may
adversely affect a junk bond issuer's ability to make principal and interest
payments. Rising interest rates tend to lower the value of all bonds.
57
[sidebar]
PERFORMANCE OF A $10,000 INVESTMENT
03/01/95 - 02/28/05 ($)
SALES CHARGE WITHOUT
- -----------------------------------------------
Class Z 14,310
Performance data quoted represents past performance and current performance may
be lowoer of higher. Past performance is no guarantee of future results. The
investment return will fluctuate so that shares many be worth more or less than
the original cost. Please visit www.columbiafunds.com for daily and most recent
month-end performance updates.
PERFORMANCE INFORMATION ________________________________________________________
Columbia Daily Income Company
AVERAGE ANNUAL TOTAL RETURN AS OF 02/28/05 (%)
CLASS Z LIPPER MONEY MARKET
INCEPTION 11/03/74 FUNDS CATEGORY AVERAGE
- -------------------------------------------------------------------
6-month (cumulative) 0.59 0.57
- -------------------------------------------------------------------
1-year 0.78 0.79
- -------------------------------------------------------------------
5-year 2.24 2.11
- -------------------------------------------------------------------
10-year 3.65 3.57
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/04 (%)
LIPPER MONEY MARKET
CLASS Z FUNDS CATEGORY AVERAGE
- -------------------------------------------------------------------
6-month (cumulative) 0.42 0.43
- -------------------------------------------------------------------
1-year 0.57 0.60
- -------------------------------------------------------------------
5-year 2.37 2.23
- -------------------------------------------------------------------
10-year 3.71 3.64
ALL RESULTS SHOWN ASSUME REINVESTMENT OF DISTRIBUTIONS. CLASS Z SHARES ARE SOLD
AT NET ASSET VALUE WITH NO RULE 12B-1 FEES.
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 table does not reflect the deduction of taxes that a shareholder would pay
on fund distributions or the redemption of fund shares. An investment in the
fund is not insured or guaranteed by the Federal Deposit Insurance Corporation
or any other government agency. Although the fund seeks to preserve the value of
your investment at $1 per share, it is possible to lose money by investing in
the fund.
58
[sidebar]
ESTIMATING YOUR ACTUAL EXPENSES
To estimate the expenses that you paid over the period, first you will need your
account balance at the end of the period:
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA FUNDS
SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT
WWW.COLUMBIAFUNDS.COM OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM THEIR BROKERAGE
FIRM, CONTACT YOUR BROKERAGE FIRM TO OBTAIN YOUR ACCOUNT BALANCE
1. DIVIDE YOUR ENDING ACCOUNT BALANCE BY $1,000. FOR EXAMPLE, IF AN ACCOUNT
BALANCE WAS $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6
2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE
PERIOD," LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER
IS IN THE COLUMN LABELED "ACTUAL." MULTIPLY THIS NUMBER BY THE RESULT FROM
STEP 1. YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR
ACCOUNT DURING THE PERIOD
UNDERSTANDING YOUR EXPENSES_____________________________________________________
Columbia Daily Income Company
As a fund shareholder, you incur two types of costs. There are transaction
costs, which generally include sales charges on purchases and may include
redemption or exchange fees. There are also ongoing costs, which generally
include investment advisory fees and other fund expenses. The information on
this page is intended to help you understand your ongoing costs of investing in
the fund and to compare these costs with the ongoing costs of investing in other
mutual funds.
ANALYZING YOUR FUND'S EXPENSES BY SHARE CLASS
To illustrate these ongoing costs, we have provided an example and calculated
the expenses paid by investors in each share class during the reporting period.
The information in the following table is based on an initial investment of
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
09/01/04 - 02/28/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
- --------------------------------------------------------------------------------------------------------------------------
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
- --------------------------------------------------------------------------------------------------------------------------
Class Z 1,000.00 1,000.00 1,005.90 1,020.83 3.98 4.01 0.80
Expenses paid during the period are equal to the fund's annualized expense
ratio, multiplied by the average account value over the period, then multiplied
by the number of days in the fund's most recent fiscal half-year and divided by
365.
It is important to note that the expense amounts shown in the table are meant to
highlight only ongoing costs of investing in the fund and do not reflect any
transactional costs, such as sales charges, redemption or exchange fees.
Therefore, the hypothetical examples provided may not help you determine the
relative total costs of owning shares of different funds. If these transactional
costs were included, your costs would have been higher.
COMPARE WITH OTHER FUNDS
Since all mutual fund companies are required to include the same hypothetical
calculations about expenses in shareholder reports, you can use this information
to compare the ongoing cost of investing in the fund with other funds. To do so,
compare the 5% hypothetical example with the 5% hypothetical examples that
appear in the shareholder reports of other funds. As you compare hypothetical
examples of other funds, it is important to note that hypothetical examples are
meant to highlight the continuing cost of investing in a fund and do not reflect
any transactional costs, such as sales charges or redemption or exchange fees.
59
[sidebar]
SUMMARY
o FOR THE SIX-MONTH PERIOD THAT ENDED FEBRUARY 28, 2005, THE FUND'S CLASS Z
SHARES RETURNED 0.59%. THAT WAS COMPARABLE TO WHAT OTHER MONEY-MARKET
FUNDS RETURNED DURING THE SAME PERIOD.
o THE FEDERAL RESERVE BOARD (THE FED) INTERVENED ON FOUR OCCASIONS DURING
THE PERIOD TO PUSH SHORT-TERM INTEREST RATES HIGHER.
o A MOVE TO FLOATING-RATE NOTES ENABLED THE PORTFOLIO TO BENEFIT FROM THE
FED'S ACTIONS.
[UP ARROW] [UP ARROW]
LIPPER MONEY
MARKET FUNDS
CLASS Z SHARES CATEGORY
0.59% 0.57%
OBJECTIVE
Seeks a high level of
income consistent with the
maintenance of liquidity and
the preservation of capital
by investing primarily in high
quality money market securities
TOTAL NET ASSETS
$546.2 million
NET ASSET VALUE PER SHARE
AS OF 02/28/05 ($)
Class Z 1.00
DISTRIBUTIONS DECLARED PER SHARE
09/01/04 - 02/28/05 ($)
Class Z 0.006
PORTFOLIO MANAGER'S REPORT______________________________________________________
Columbia Daily Income Company
For the six-month period ended February 28, 2005, Columbia Daily Income Company
class Z shares returned 0.59%. This return was slightly higher than the Lipper
Money Market Funds Category, which averaged a gain of 0.57% for the period. 1
Short-term rates began the period near their historical low but moved higher
throughout the period.
A SLOW TREND TO HIGHER RATES
A sustained effort by the Fed to push short-term interest rates higher was the
key driver of fund returns for the period. On four separate occasions, the Fed's
policymakers intervened to raise the federal funds rate, a key overnight lending
rate for banks, by one-quarter of a percentage point. The fed funds rate climbed
from 1.50% to 2.50% by the end of the period. 2
The Fed intervened in order to manage the growth of the overall economy and to
contain inflation. Because commercial borrowing, credit-card rates and even
adjustable-rate mortgages are all tied to short-term rates, a rise in rates
tends to slow the economy and inflation tends to remain low when economic growth
is steady to slow. Prior to last summer, rates had been kept artificially low as
an economic stimulus, but subsequent growth has allowed for a gradual return to
a more neutral level.
MOVING TO FLOATING-RATE NOTES
During the period, we moved a significant portion of the fund's
holdings--approximately two-thirds of its assets--into floating-rate securities.
The yields on floating-rate notes are typically linked to LIBOR (London
Interbank Offered Rate) and they adjust weekly, monthly or quarterly. Because
these yields are automatically reset higher when short-term interest rates
increase, they have been well-suited to the Fed's repeated actions.
Floating-rate notes can take many forms, including corporate debt and taxable
municipal securities.
1 Lipper Inc., a widely respected data provider in the industry, calculates
an average total return for mutual funds with similar investment
objectives as those of the fund.
2 On March 22, 2005, the federal funds rate increased to 2.75%.
60
[sidebar]
PORTFOLIO HIGHLIGHTS AS OF 02/28/05
Seven day current yield 1.74%
- ------------------------------------------------
Seven day effective yield 1.75%
- ------------------------------------------------
Average days to maturity 26
________________________________________________________________________________
Columbia Daily Income Company
TRACKING THE FED
Because increases in the fed funds rate affect the interactions of the entire
range of short-term securities, we have kept a close watch over the weighted
average maturity of the portfolio. As a rule, we have shortened the portfolio's
weighted average maturity in an effort to capture interest-rate hikes as they
occur, while buying longer securities when warranted by our analysis. The fund's
weighted average maturity was 26 days at the end of the period.
Going forward, we will continue to monitor both the short-term marketplace and
investor expectations. We will continue to focus our efforts on achieving the
highest possible short-term yields in accordance with our rigorous quality
standards.
[Photo of Karen Arneil] Karen Arneil has managed the fund since October
2004 and has been with the advisor or its
predecessors or affiliate organizations since
1996.
/s/ Karen Arneil
There is a chance that the fund's investments may not keep pace with the rate of
inflation over the long term. Also, an investment in the fund is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. Although the fund seeks to preserve the value of your investment at $1
per share, it is possible to lose money by investing in the fund.
61
[sidebar]
FINANCIAL STATEMENTS____________________________________________________________
February 28, 2005 Columbia Funds
A GUIDE TO UNDERSTANDING YOUR FUND'S FINANCIAL STATEMENTS
- ---------------------------------------------------------------------------------------------------------
INVESTMENT PORTFOLIO The investment portfolio details all of the fund's
holdings and their market value as of the last day of the
reporting period. Portfolio holdings are organized by
type of asset, industry, country or geographic region (if
applicable) to demonstrate areas of concentration and
diversification.
- ---------------------------------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES This statement details the fund's assets, liabilities,
net assets and share price for each share class 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).
62
This page intentionally left blank.
INVESTMENT PORTFOLIO ___________________________________________________________
February 28, 2005 (Unaudited) Columbia Common Stock Fund
SHARES VALUE ($)
------- -------------
COMMON STOCKS - 96.6%
CONSUMER DISCRETIONARY - 19.6%
AUTOMOBILES - 1.9%
General Motors Corp. 124,380 4,436,634
-------------
Automobiles Total 4,436,634
HOTELS, RESTAURANTS & LEISURE - 0.9%
Darden Restaurants, Inc. 74,300 1,991,240
-------------
Hotels, Restaurants & Leisure Total 1,991,240
INTERNET & CATALOG RETAIL - 1.5%
Amazon.com, Inc. (a) 65,640 2,309,215
eBay, Inc. (a) 28,840 1,235,506
-------------
Internet & Catalog Retail Total 3,544,721
LEISURE EQUIPMENT & PRODUCTS - 0.7%
Hasbro, Inc. 73,860 1,559,923
-------------
Leisure Equipment & Products Total 1,559,923
MEDIA - 11.0%
Clear Channel Communications, Inc. 41,180 1,370,470
Comcast Corp., Class A (a) 143,282 4,663,829
DirecTV Group, Inc. (a) 242,010 3,632,570
Liberty Media Corp., Class A (a) 414,140 4,199,380
Liberty Media International, Inc.,
Class A (a) 23,173 1,001,769
News Corp., Class A 126,190 2,099,802
Time Warner, Inc. (a) 273,070 4,704,996
Viacom, Inc., Class B 98,750 3,446,375
-------------
Media Total 25,119,191
MULTILINE RETAIL - 2.1%
Kohl's Corp. (a) 53,480 2,560,088
May Department Stores Co. 63,800 2,201,738
-------------
Multiline Retail Total 4,761,826
SPECIALTY RETAIL - 1.5%
RadioShack Corp. 112,950 3,338,802
-------------
Specialty Retail Total 3,338,802
-------------
CONSUMER DISCRETIONARY TOTAL 44,752,337
CONSUMER STAPLES - 5.1%
BEVERAGES - 0.5%
Coca-Cola Co. 27,790 1,189,412
-------------
Beverages Total 1,189,412
FOOD & STAPLES RETAILING - 1.6%
Wal-Mart Stores, Inc. 69,760 3,600,313
-------------
Food & Staples Retailing Total 3,600,313
FOOD PRODUCTS - 0.7%
Sara Lee Corp. 70,310 1,574,944
-------------
Food Products Total 1,574,944
SHARES VALUE ($)
------- -------------
HOUSEHOLD PRODUCTS - 1.1%
Colgate-Palmolive Co. 46,140 2,441,729
-------------
Household Products Total 2,441,729
TOBACCO - 1.2%
Altria Group, Inc. 41,375 2,716,269
-------------
Tobacco Total 2,716,269
-------------
CONSUMER STAPLES TOTAL 11,522,667
ENERGY - 3.9%
ENERGY EQUIPMENT & SERVICES - 0.9%
Transocean, Inc. (a) 44,550 2,159,784
-------------
Energy Equipment & Services Total 2,159,784
OIL & GAS - 3.0%
Anadarko Petroleum Corp. 29,330 2,254,304
BP PLC, ADR 22,110 1,435,381
Devon Energy Corp. 66,960 3,133,058
-------------
Oil & Gas Total 6,822,743
-------------
ENERGY TOTAL 8,982,527
FINANCIALS - 16.4%
CAPITAL MARKETS - 2.2%
A.G. Edwards, Inc. 36,510 1,573,946
E*TRADE Financial Corp. (a) 110,950 1,472,307
Morgan Stanley 34,860 1,968,544
-------------
Capital Markets Total 5,014,797
COMMERCIAL BANKS - 0.9%
Fifth Third Bancorp 47,030 2,105,533
-------------
Commercial Banks Total 2,105,533
CONSUMER FINANCE - 1.1%
American Express Co. 46,040 2,493,066
-------------
Consumer Finance Total 2,493,066
DIVERSIFIED FINANCIAL SERVICES - 3.3%
Citigroup, Inc. 82,409 3,932,557
JPMorgan Chase & Co. 97,642 3,568,815
-------------
Diversified Financial Services Total 7,501,372
INSURANCE - 6.4%
Ace Ltd. 70,830 3,149,102
Allstate Corp. 29,010 1,557,257
Berkshire Hathaway, Inc., Class B (a) 1,209 3,645,135
Chubb Corp. 18,805 1,487,663
UnumProvident Corp. 279,730 4,733,032
-------------
Insurance Total 14,572,189
THRIFTS & MORTGAGE FINANCE - 2.5%
MGIC Investment Corp. 90,390 5,671,069
-------------
Thrifts & Mortgage Finance Total 5,671,069
-------------
FINANCIALS TOTAL 37,358,026
64 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Common Stock Fund
SHARES VALUE ($)
------- -------------
COMMON STOCKS - (CONTINUED)
HEALTH CARE - 11.7%
BIOTECHNOLOGY - 1.3%
Amgen, Inc. (a) 27,132 1,671,603
MedImmune, Inc. (a) 58,790 1,415,663
-------------
Biotechnology Total 3,087,266
HEALTH CARE PROVIDERS & SERVICES - 3.8%
Cardinal Health, Inc. 56,800 3,325,640
McKesson Corp. 30,970 1,156,420
WebMD Corp. (a) 554,020 4,177,311
-------------
Health Care Providers & Services Total 8,659,371
PHARMACEUTICALS - 6.6%
Barr Pharmaceuticals, Inc. (a) 104,000 4,964,960
Biovail Corp. (a) 150,590 2,415,463
Eli Lilly & Co. 20,020 1,121,120
Endo Pharmaceuticals Holdings, Inc. (a) 110,330 2,485,735
IVAX Corp. (a) 95,430 1,525,926
Pfizer, Inc. 92,904 2,442,446
-------------
Pharmaceuticals Total 14,955,650
-------------
HEALTH CARE TOTAL 26,702,287
INDUSTRIALS - 6.2%
AIRLINES - 1.4%
Southwest Airlines Co. 225,730 3,126,360
-------------
Airlines Total 3,126,360
COMMERCIAL SERVICES & SUPPLIES - 2.2%
ARAMARK Corp., Class B 49,260 1,380,758
Cintas Corp. 28,300 1,238,974
Waste Management, Inc. 81,045 2,369,756
-------------
Commercial Services & Supplies Total 4,989,488
CONSTRUCTION & ENGINEERING - 0.7%
Jacobs Engineering Group, Inc. (a) 27,710 1,551,206
-------------
Construction & Engineering Total 1,551,206
MACHINERY - 1.0%
Dover Corp. 61,900 2,393,673
-------------
Machinery Total 2,393,673
ROAD & RAIL - 0.9%
Union Pacific Corp. 32,020 2,031,669
-------------
Road & Rail Total 2,031,669
-------------
INDUSTRIALS TOTAL 14,092,396
SHARES VALUE ($)
------- -------------
INFORMATION TECHNOLOGY - 19.5%
COMMUNICATIONS EQUIPMENT - 3.0%
Cisco Systems, Inc. (a) 112,490 1,959,576
Corning, Inc. (a) 100,360 1,151,129
Lucent Technologies, Inc. (a) 285,540 876,608
Nortel Networks Corp. (a) 1,035,580 2,775,354
-------------
Communications Equipment Total 6,762,667
COMPUTERS & PERIPHERALS - 6.6%
Hewlett-Packard Co. 182,180 3,789,344
International Business Machines Corp. 48,285 4,470,226
SanDisk Corp. (a) 191,090 5,136,499
Sun Microsystems, Inc. (a) 412,560 1,741,003
-------------
Computers & Peripherals Total 15,137,072
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.5%
Agilent Technologies, Inc. (a) 52,720 1,265,280
-------------
Electronic Equipment & Instruments Total 1,265,280
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 5.3%
Analog Devices, Inc. 31,850 1,169,532
Broadcom Corp., Class A (a) 41,400 1,335,150
Intel Corp. 193,260 4,634,375
Linear Technology Corp. 96,120 3,754,447
Maxim Integrated Products, Inc. 26,560 1,142,611
-------------
Semiconductors & Semiconductor Equipment Total 12,036,115
SOFTWARE - 4.1%
Fair Isaac Corp. 35,450 1,198,210
Microsoft Corp. 206,010 5,187,332
Oracle Corp. (a) 221,930 2,865,116
-------------
Software Total 9,250,658
-------------
INFORMATION TECHNOLOGY TOTAL 44,451,792
MATERIALS - 9.2%
CHEMICALS - 2.3%
E.I. du Pont de Nemours & Co. 99,650 5,311,345
-------------
Chemicals Total 5,311,345
CONTAINERS & PACKAGING - 3.5%
Sealed Air Corp. (a) 65,290 3,412,708
Smurfit-Stone Container Corp. (a) 269,990 4,489,934
-------------
Containers & Packaging Total 7,902,642
METALS & MINING - 2.9%
Alcoa, Inc. 96,560 3,101,507
International Steel Group, Inc. (a) 83,740 3,496,145
-------------
Metals & Mining Total 6,597,652
PAPER & FOREST PRODUCTS - 0.5%
Sappi Ltd., ADR 85,700 1,150,094
-------------
Paper & Forest Products Total 1,150,094
-------------
MATERIALS TOTAL 20,961,733
See Accompanying Notes to Financial Statements. | 65
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Common Stock Fund
SHARES VALUE ($)
------- -------------
COMMON STOCKS - (CONTINUED)
TELECOMMUNICATION SERVICES - 5.0%
DIVERSIFIED TELECOMMUNICATION SERVICES - 3.9%
Brasil Telecom Participacoes SA, ADR 7,190 244,460
CenturyTel, Inc. 42,570 1,432,055
Qwest Communications
International, Inc. (a) 555,880 2,167,932
Telefonos de Mexico SA de CV, ADR 58,850 2,307,509
Verizon Communications, Inc. 78,500 2,823,645
-------------
Diversified Telecommunication Services Total 8,975,601
WIRELESS TELECOMMUNICATION SERVICES - 1.1%
Nextel Communications, Inc.,
Class A (a) 84,110 2,475,357
-------------
Wireless Telecommunication Services Total 2,475,357
-------------
TELECOMMUNICATION SERVICES TOTAL 11,450,958
Total Common Stocks
(Cost of $197,668,246) 220,274,723
SHORT-TERM OBLIGATION - 0.2% PAR ($)
Repurchase agreement with State Street
Bank & Trust Co., dated 02/28/05,
due 03/01/05 at 2.500%, collateralized
by a U.S. Treasury Note maturing
09/30/06, market value of $537,585
(repurchase proceeds $525,036) 525,000 525,000
-------------
TOTAL SHORT-TERM OBLIGATION
(COST OF $525,000) 525,000
TOTAL INVESTMENTS - 96.8%
(COST OF $198,193,246) (b) 220,799,723
OTHER ASSETS & LIABILITIES, NET - 3.2% 7,249,018
NET ASSETS - 100.0% 228,048,741
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing security.
(b) Cost for federal income tax purposes is $198,193,246.
At February 28, 2005, the Fund held investments in the following sectors:
% OF
SECTOR NET ASSETS
- ----------------------------------------------------------------------
Consumer Discretionary 19.6%
Information Technology 19.5
Financials 16.4
Health Care 11.7
Materials 9.2
Industrials 6.2
Consumer Staples 5.1
Telecommunication Services 5.0
Energy 3.9
Short-Term Obligation 0.2
Other Assets & Liabilities, Net 3.2
-----
100.0%
=====
ACRONYM NAME
------- ----
ADR American Depositary Receipt
66 | See Accompanying Notes to Financial Statements.
INVESTMENT PORTFOLIO ___________________________________________________________
February 28, 2005 (Unaudited) Columbia Growth Fund
SHARES VALUE ($)
------- -------------
COMMON STOCKS - 97.6%
CONSUMER DISCRETIONARY - 17.6%
HOTELS, RESTAURANTS & LEISURE - 4.8%
Carnival Corp. 156,010 8,483,824
Hilton Hotels Corp. 342,890 7,221,263
Marriott International, Inc., Class A 225,870 14,478,267
McDonald's Corp. 165,220 5,465,478
-------------
Hotels, Restaurants & Leisure Total 35,648,832
INTERNET & CATALOG RETAIL - 1.3%
eBay, Inc. (a) 217,400 9,313,416
-------------
Internet & Catalog Retail Total 9,313,416
MEDIA - 2.3%
Omnicom Group 64,110 5,838,498
XM Satellite Radio Holdings, Inc.,
Class A (a) 327,120 10,781,875
-------------
Media Total 16,620,373
MULTILINE RETAIL - 1.4%
Nordstrom, Inc. 197,100 10,596,096
-------------
Multiline Retail Total 10,596,096
SPECIALTY RETAIL - 5.9%
Best Buy Co., Inc. 136,890 7,394,798
Chico's FAS, Inc. (a) 321,080 9,455,806
Home Depot, Inc. 276,080 11,048,721
Lowe's Companies, Inc. 99,810 5,866,832
Staples, Inc. 315,890 9,956,853
-------------
Specialty Retail Total 43,723,010
TEXTILES, APPAREL & LUXURY GOODS - 1.9%
Coach, Inc. (a) 145,350 8,071,285
NIKE, Inc., Class B 66,800 5,808,260
-------------
Textiles, Apparel & Luxury Goods Total 13,879,545
-------------
CONSUMER DISCRETIONARY TOTAL 129,781,272
CONSUMER STAPLES - 12.0%
BEVERAGES - 2.0%
PepsiCo, Inc. 272,690 14,687,084
-------------
Beverages Total 14,687,084
FOOD & STAPLES RETAILING - 1.2%
Sysco Corp. 56,480 1,944,042
Wal-Mart Stores, Inc. 139,040 7,175,854
-------------
Food & Staples Retailing Total 9,119,896
FOOD PRODUCTS - 0.6%
Hershey Foods Corp. 72,940 4,595,220
-------------
Food Products Total 4,595,220
SHARES VALUE ($)
------- -------------
HOUSEHOLD PRODUCTS - 1.9%
Procter & Gamble Co. 261,360 13,875,602
-------------
Household Products Total 13,875,602
PERSONAL PRODUCTS - 4.7%
Alberto-Culver Co. 261,775 13,682,979
Avon Products, Inc. 302,740 12,948,190
Gillette Co. 164,920 8,287,230
-------------
Personal Products Total 34,918,399
TOBACCO - 1.6%
Altria Group, Inc. 175,780 11,539,957
-------------
Tobacco Total 11,539,957
-------------
CONSUMER STAPLES TOTAL 88,736,158
ENERGY - 2.1%
ENERGY EQUIPMENT & SERVICES - 1.2%
National-Oilwell, Inc. (a) 121,670 5,516,518
Smith International, Inc. (a) 52,640 3,382,646
-------------
Energy Equipment & Services Total 8,899,164
OIL & GAS - 0.9%
EOG Resources, Inc. 73,030 6,654,494
-------------
Oil & Gas Total 6,654,494
-------------
ENERGY TOTAL 15,553,658
FINANCIALS - 7.3%
CAPITAL MARKETS - 2.0%
Goldman Sachs Group, Inc. 96,440 10,492,672
Merrill Lynch & Co., Inc. 75,960 4,449,737
-------------
Capital Markets Total 14,942,409
COMMERCIAL BANKS - 1.5%
North Fork Bancorporation, Inc. 104,050 2,997,681
Wells Fargo & Co. 131,600 7,814,408
-------------
Commercial Banks Total 10,812,089
CONSUMER FINANCE - 0.4%
MBNA Corp. 127,560 3,236,197
-------------
Consumer Finance Total 3,236,197
DIVERSIFIED FINANCIAL SERVICES - 1.8%
Citigroup, Inc. 275,006 13,123,286
-------------
Diversified Financial Services Total 13,123,286
INSURANCE - 1.6%
American International Group, Inc. 103,600 6,920,480
Prudential Financial, Inc. 82,560 4,705,920
-------------
Insurance Total 11,626,400
-------------
FINANCIALS TOTAL 53,740,381
See Accompanying Notes to Financial Statements. | 67
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Growth Fund
SHARES VALUE ($)
------- -------------
COMMON STOCKS - (CONTINUED)
HEALTH CARE - 25.7%
BIOTECHNOLOGY - 2.0%
Amgen, Inc. (a) 117,730 7,253,345
Biogen Idec, Inc. (a) 53,740 2,077,051
Genentech, Inc. (a) 68,980 3,255,856
Gilead Sciences, Inc. (a) 65,220 2,253,351
-------------
Biotechnology Total 14,839,603
HEALTH CARE EQUIPMENT & SUPPLIES - 8.6%
Alcon, Inc. 89,690 7,740,247
Cooper Companies, Inc. 99,737 8,213,342
Kinetic Concepts, Inc. (a) 117,160 7,642,347
St. Jude Medical, Inc. (a) 203,550 7,958,805
Thermo Electron Corp. (a) 266,700 7,323,582
Varian Medical Systems, Inc. (a) 391,390 14,062,643
Zimmer Holdings, Inc. (a) 125,290 10,762,411
-------------
Health Care Equipment & Supplies Total 63,703,377
HEALTH CARE PROVIDERS & SERVICES - 3.6%
Caremark Rx, Inc. (a) 149,130 5,708,697
UnitedHealth Group, Inc. 127,540 11,626,546
WellPoint, Inc. (a) 75,740 9,244,824
-------------
Health Care Providers & Services Total 26,580,067
PHARMACEUTICALS - 11.5%
Abbott Laboratories 290,340 13,352,736
IVAX Corp. (a) 113,250 1,810,867
Johnson & Johnson 472,170 30,974,352
Novartis AG, ADR 235,310 11,758,441
Pfizer, Inc. 592,513 15,577,167
Teva Pharmaceutical Industries
Ltd., ADR 368,126 11,084,274
-------------
Pharmaceuticals Total 84,557,837
-------------
HEALTH CARE TOTAL 189,680,884
INDUSTRIALS - 9.9%
AEROSPACE & DEFENSE - 1.0%
Honeywell International, Inc. 96,180 3,651,955
United Technologies Corp. 39,550 3,950,254
-------------
Aerospace & Defense Total 7,602,209
BUILDING PRODUCTS - 1.5%
American Standard Co., Inc. (a) 246,810 11,303,898
-------------
Building Products Total 11,303,898
ELECTRICAL EQUIPMENT - 1.0%
Rockwell Automation, Inc. 121,040 7,522,636
-------------
Electrical Equipment Total 7,522,636
INDUSTRIAL CONGLOMERATES - 4.7%
General Electric Co. 411,255 14,476,176
Tyco International Ltd. 590,890 19,782,997
-------------
Industrial Conglomerates Total 34,259,173
SHARES VALUE ($)
------- -------------
MACHINERY - 1.7%
Ingersoll-Rand Co., Ltd., Class A 95,200 8,020,600
ITT Industries, Inc. 50,270 4,421,246
-------------
Machinery Total 12,441,846
-------------
INDUSTRIALS TOTAL 73,129,762
INFORMATION TECHNOLOGY - 23.0%
COMMUNICATIONS EQUIPMENT - 4.2%
Avaya, Inc. (a) 155,220 2,173,080
Cisco Systems, Inc. (a) 881,805 15,361,043
Nokia Oyj, ADR 243,350 3,927,669
QUALCOMM, Inc. 276,470 9,983,332
-------------
Communications Equipment Total 31,445,124
COMPUTERS & PERIPHERALS - 4.9%
Dell, Inc. (a) 373,150 14,959,584
EMC Corp. (a) 315,750 3,997,395
International Business Machines Corp. 183,040 16,945,843
-------------
Computers & Peripherals Total 35,902,822
INTERNET SOFTWARE & SERVICES - 1.2%
Yahoo!, Inc. (a) 276,960 8,937,499
-------------
Internet Software & Services Total 8,937,499
IT SERVICES - 1.0%
Automatic Data Processing, Inc. 63,590 2,731,826
Cognizant Technology Solutions
Corp., Class A (a) 97,350 4,597,841
-------------
IT Services Total 7,329,667
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 6.6%
Altera Corp. (a) 333,730 6,921,560
ASML Holding N.V., N.Y. Registered
Shares (a) 254,650 4,665,188
Intel Corp. 707,870 16,974,723
Linear Technology Corp. 50,630 1,977,608
National Semiconductor Corp. 224,890 4,486,555
Taiwan Semiconductor Manufacturing
Co., Ltd., ADR 411,520 3,753,062
Teradyne, Inc. (a) 249,830 3,852,379
Texas Instruments, Inc. 226,950 6,007,367
-------------
Semiconductors & Semiconductor Equipment Total 48,638,442
SOFTWARE - 5.1%
Amdocs Ltd. (a) 119,800 3,516,130
Microsoft Corp. 1,001,740 25,223,813
Oracle Corp. (a) 399,260 5,154,447
Symantec Corp. (a) 158,940 3,498,269
-------------
Software Total 37,392,659
-------------
INFORMATION TECHNOLOGY TOTAL 169,646,213
Total Common Stocks
(Cost of $629,069,323) 720,268,328
68 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Growth Fund
SHARES VALUE ($)
------- -------------
PREFERRED STOCK - 0.3%
CONSUMER DISCRETIONARY - 0.3%
MEDIA - 0.3%
News Corp., Ltd., ADR 132,810 2,209,958
-------------
Media Total 2,209,958
-------------
CONSUMER DISCRETIONARY TOTAL 2,209,958
Total Preferred Stock
(Cost of $2,269,275) 2,209,958
TOTAL INVESTMENTS - 97.9%
(COST OF $631,338,598) (b) 722,478,286
OTHER ASSETS & LIABILITIES, NET - 2.1% 15,154,759
NET ASSETS - 100.0% 737,633,045
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing security.
(b) Cost for federal income tax purposes is $631,338,598.
At February 28, 2005, the Fund held investments in the following sectors:
% OF
SECTOR NET ASSETS
----------------------------------------------------------------
Health Care 25.7%
Information Technology 23.0
Consumer Discretionary 17.9
Consumer Staples 12.0
Industrials 9.9
Financials 7.3
Energy 2.1
Other Assets & Liabilities, Net 2.1
-----
100.0%
=====
ACRONYM NAME
------- ----
ADR American Depositary Receipt
See Accompanying Notes to Financial Statements. | 69
INVESTMENT PORTFOLIO ___________________________________________________________
February 28, 2005 (Unaudited) Columbia International Stock Fund
SHARES VALUE ($)
------- -------------
COMMON STOCKS - 97.9%
CONSUMER DISCRETIONARY - 12.1%
AUTO COMPONENTS - 1.1%
Continental AG 55,000 4,069,163
Denso Corp. 121,400 3,114,521
-------------
Auto Components Total 7,183,684
AUTOMOBILES - 2.7%
Nissan Motor Co., Ltd. 223,500 2,397,498
Renault SA 80,341 7,270,451
Toyota Motor Corp. 221,300 8,613,672
-------------
Automobiles Total 18,281,621
HOTELS, RESTAURANTS & LEISURE - 0.3%
Carnival Corp. 41,700 2,267,646
-------------
Hotels, Restaurants & Leisure Total 2,267,646
HOUSEHOLD DURABLES - 3.3%
Daiwa House Industry Co., Ltd. 182,000 2,067,198
Koninklijke (Royal) Philips
Electronics NV 194,900 5,387,907
Matsushita Electric Industrial Co., Ltd. 420,000 6,279,545
Pioneer Corp. 143,000 2,521,642
Sekisui Chemical Co., Ltd. 384,000 2,856,211
Sharp Corp. 215,000 3,416,991
-------------
Household Durables Total 22,529,494
LEISURE EQUIPMENT & PRODUCTS - 1.1%
Fuji Photo Film Co., Ltd. 188,000 7,121,347
-------------
Leisure Equipment & Products Total 7,121,347
MEDIA - 2.7%
JC Decaux SA (a) 78,500 2,018,624
Mediaset S.p.A. 145,000 2,040,954
News Corp., Class B 218,700 3,763,827
Pearson PLC 627,100 7,679,455
Vivendi Universal SA (a) 86,000 2,715,899
-------------
Media Total 18,218,759
TEXTILES, APPAREL & LUXURY GOODS - 0.9%
Burberry Group PLC 544,846 4,127,561
Swatch Group AG, Registered Shares 77,400 2,156,227
-------------
Textiles, Apparel & Luxury Goods Total 6,283,788
-------------
CONSUMER DISCRETIONARY TOTAL 81,886,339
CONSUMER STAPLES - 8.7%
BEVERAGES - 1.5%
Diageo PLC 430,350 6,123,279
SABMiller PLC 262,079 4,326,129
-------------
Beverages Total 10,449,408
FOOD & STAPLES RETAILING - 1.3%
Ito-Yokado Co., Ltd. 85,000 3,522,118
Metro AG 93,688 5,256,910
-------------
Food & Staples Retailing Total 8,779,028
SHARES VALUE ($)
------- -------------
FOOD PRODUCTS - 2.8%
Nestle SA, Registered Shares 44,797 12,436,369
Royal Numico NV (a) 50,700 2,047,030
Unilever PLC 495,220 4,732,932
-------------
Food Products Total 19,216,331
HOUSEHOLD PRODUCTS - 1.9%
Kao Corp. 113,000 2,685,247
Reckitt Benckiser PLC 312,064 9,818,017
-------------
Household Products Total 12,503,264
TOBACCO - 1.2%
Imperial Tobacco Group PLC 191,397 5,100,771
Japan Tobacco, Inc. 289 3,142,584
-------------
Tobacco Total 8,243,355
-------------
CONSUMER STAPLES TOTAL 59,191,386
ENERGY - 9.9%
ENERGY EQUIPMENT & SERVICES - 0.7%
Saipem S.p.A. 193,600 2,620,923
Stolt Offshore SA (a) 244,600 1,934,318
-------------
Energy Equipment & Services Total 4,555,241
OIL & GAS - 9.2%
BG Group PLC 707,277 5,546,850
BP PLC, ADR 227,930 14,797,216
EnCana Corp. 159,800 10,599,780
ENI S.p.A. 383,550 10,029,042
Norsk Hydro ASA 38,280 3,310,485
OMV AG 6,200 2,148,931
Shell Transport & Trading Co., PLC 569,000 5,334,398
Total SA 45,590 10,850,575
-------------
Oil & Gas Total 62,617,277
-------------
ENERGY TOTAL 67,172,518
FINANCIALS - 24.7%
CAPITAL MARKETS - 1.8%
Credit Suisse Group 62,500 2,721,478
Deutsche Bank AG, Registered Shares 77,898 6,839,822
Nomura Holdings, Inc. 191,000 2,643,173
-------------
Capital Markets Total 12,204,473
COMMERCIAL BANKS - 15.3%
ABN AMRO Holding NV 231,770 6,391,685
Anglo Irish Bank Corp., PLC 206,000 5,428,563
Australia & New Zealand Banking
Group Ltd. 120,100 2,028,569
Banco Bilbao Vizcaya Argentaria SA 238,500 4,122,776
Banco de Sabadell SA 104,203 2,656,894
Banco Popolare di Verona E Novara 211,600 4,145,150
Banco Popular Espanol SA 60,780 4,207,911
Bank of Ireland 307,856 5,159,260
Bank of Yokohama Ltd. 425,000 2,612,185
Barclays PLC 773,410 8,383,140
BNP Paribas SA 92,354 6,700,885
70 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia International Stock Fund
SHARES VALUE ($)
------- -------------
COMMON STOCKS - (CONTINUED)
FINANCIALS - (CONTINUED)
COMMERCIAL BANKS - (CONTINUED)
DBS Group Holdings Ltd. 377,000 3,444,282
DNB NOR ASA 386,600 3,935,465
HSBC Holdings PLC 571,500 9,540,171
Mitsubishi Tokyo Financial Group, Inc. 352 3,228,373
Mizuho Financial Group, Inc. 755 3,667,715
National Bank of Greece SA 125,190 4,758,409
Royal Bank of Scotland Group PLC 255,071 8,736,632
Skandinaviska Enskilda Banken AB,
Class A 149,000 2,887,422
Sumitomo Mitsui Financial Group, Inc. 461 3,193,269
Suncorp-Metway Ltd. 111,100 1,657,074
UniCredito Italiano S.p.A. 463,600 2,706,409
United Overseas Bank Ltd. 499,000 4,166,678
-------------
Commercial Banks Total 103,758,917
CONSUMER FINANCE - 0.4%
Credit Saison Co., Ltd. 77,800 2,762,641
-------------
Consumer Finance Total 2,762,641
DIVERSIFIED FINANCIAL SERVICES - 0.7%
ING Groep NV, CVA 162,040 4,977,829
-------------
Diversified Financial Services Total 4,977,829
INSURANCE - 4.5%
Aegon NV 458,234 6,612,787
Allianz AG, Registered Shares 21,893 2,767,998
AXA 230,780 6,197,727
Irish Life & Permanent PLC 196,100 3,986,249
Mitsui Sumitomo Insurance Co., Ltd. 322,000 2,867,378
QBE Insurance Group Ltd. 137,100 1,657,803
Riunione Adriatica di Sicurta S.p.A. 151,001 3,503,860
Zurich Financial Services AG (a) 15,983 2,940,752
-------------
Insurance Total 30,534,554
REAL ESTATE - 2.0%
City Developments Ltd. 321,000 1,329,807
Sumitomo Realty & Development
Co., Ltd. 287,000 3,657,762
Sun Hung Kai Properties Ltd. 287,000 2,665,042
Swire Pacific Ltd., Class A 461,000 3,757,278
Wharf Holdings Ltd. 503,000 1,705,194
-------------
Real Estate Total 13,115,083
-------------
FINANCIALS TOTAL 167,353,497
HEALTH CARE - 8.9%
HEALTH CARE EQUIPMENT & SUPPLIES - 1.7%
GN Store Nord A/S 158,000 1,712,520
Smith & Nephew PLC 494,310 5,071,584
Synthes, Inc. (a) 28,200 3,406,529
Terumo Corp. 50,100 1,570,385
-------------
Health Care Equipment & Supplies Total 11,761,018
SHARES VALUE ($)
------- -------------
PHARMACEUTICALS - 7.2%
AstraZeneca PLC 208,600 8,272,737
GlaxoSmithKline PLC 478,450 11,471,745
Novartis AG, Registered Shares 137,760 6,911,158
Sanofi-Aventis SA 79,330 6,349,412
Schering AG 66,600 4,871,302
Shire Pharmaceuticals Group PLC 201,800 2,244,160
Takeda Pharmaceutical Co., Ltd. 85,700 4,100,923
Teva Pharmaceutical Industries
Ltd., ADR 141,400 4,257,554
-------------
Pharmaceuticals Total 48,478,991
-------------
HEALTH CARE TOTAL 60,240,009
INDUSTRIALS - 12.5%
AEROSPACE & DEFENSE - 0.3%
Singapore Technologies
Engineering Ltd. 1,350,000 1,959,223
-------------
Aerospace & Defense Total 1,959,223
BUILDING PRODUCTS - 0.9%
Nippon Sheet Glass Co., Ltd. 429,000 1,903,045
Wienerberger AG 78,755 3,917,924
-------------
Building Products Total 5,820,969
COMMERCIAL SERVICES & SUPPLIES - 1.3%
Randstad Holding NV 205,218 9,126,215
-------------
Commercial Services & Supplies Total 9,126,215
CONSTRUCTION & ENGINEERING - 1.8%
Obayashi Corp. 319,000 2,025,361
Shimizu Corp. 586,000 2,885,581
Vinci SA 50,900 7,479,683
-------------
Construction & Engineering Total 12,390,625
ELECTRICAL EQUIPMENT - 0.5%
Mitsubishi Electric Corp. 669,000 3,505,337
-------------
Electrical Equipment Total 3,505,337
INDUSTRIAL CONGLOMERATES - 1.6%
Hutchison Whampoa Ltd. 380,000 3,417,213
SembCorp Industries Ltd. 1,161,000 1,351,943
Siemens AG, Registered Shares 29,778 2,336,139
Smiths Group PLC 225,978 3,702,894
-------------
Industrial Conglomerates Total 10,808,189
MACHINERY - 2.5%
Atlas Copco AB, Class B 178,400 8,244,354
Komatsu Ltd. 284,000 2,133,755
Volvo AB, Class B 135,200 6,213,483
-------------
Machinery Total 16,591,592
MARINE - 0.5%
Kawasaki Kisen Kaisha Ltd. 443,000 3,331,073
-------------
Marine Total 3,331,073
See Accompanying Notes to Financial Statements. | 71
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia International Stock Fund
SHARES VALUE ($)
------- -------------
COMMON STOCKS - (CONTINUED)
INDUSTRIALS - (CONTINUED)
ROAD & RAIL - 1.8%
Canadian National Railway Co. 117,385 7,279,992
ComfortDelGro Corp., Ltd. 2,285,000 2,346,808
East Japan Railway Co. 462 2,466,320
-------------
Road & Rail Total 12,093,120
TRADING COMPANIES & DISTRIBUTORS - 0.8%
Mitsubishi Corp. 413,000 5,634,364
-------------
Trading Companies & Distributors Total 5,634,364
TRANSPORTATION INFRASTRUCTURE - 0.5%
BAA PLC 289,700 3,384,618
-------------
Transportation Infrastructure Total 3,384,618
-------------
INDUSTRIALS TOTAL 84,645,325
INFORMATION TECHNOLOGY - 6.0%
COMMUNICATIONS EQUIPMENT - 1.4%
Nokia Oyj 238,000 3,846,509
Tandberg ASA 302,600 3,376,869
Telefonaktiebolaget LM Ericsson,
ADR (a) 78,800 2,309,628
-------------
Communications Equipment Total 9,533,006
COMPUTERS & PERIPHERALS - 0.5%
Toshiba Corp. 810,000 3,572,566
-------------
Computers & Peripherals Total 3,572,566
ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.1%
Hoya Corp. 16,000 1,740,796
TDK Corp. 78,000 5,663,651
-------------
Electronic Equipment & Instruments Total 7,404,447
INTERNET SOFTWARE & SERVICES - 0.2%
NIWS Co., Ltd. 475 1,465,237
-------------
Internet Software & Services Total 1,465,237
OFFICE ELECTRONICS - 0.6%
Canon, Inc. 78,400 4,151,606
-------------
Office Electronics Total 4,151,606
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 1.7%
Marvell Technology Group Ltd. (a) 78,500 2,872,315
Samsung Electronics Co., Ltd. 11,500 5,984,419
STMicroelectronics NV, N.Y.
Registered Shares 125,100 2,225,529
-------------
Semiconductors & Semiconductor Equipment Total 11,082,263
SOFTWARE - 0.5%
Sage Group PLC 888,100 3,519,733
-------------
Software Total 3,519,733
-------------
INFORMATION TECHNOLOGY TOTAL 40,728,858
SHARES VALUE ($)
------- -------------
MATERIALS - 5.5%
CHEMICALS - 4.0%
BASF AG 46,600 3,490,687
Novozymes A/S, Class B 33,300 1,647,734
Shin-Etsu Chemical Co., Ltd. 114,900 4,702,166
Solvay SA, Class A 15,700 1,826,956
Sumitomo Chemical Co., Ltd. 1,243,000 6,616,521
Syngenta AG (a) 60,436 6,792,662
Teijin Ltd. 563,000 2,338,937
-------------
Chemicals Total 27,415,663
CONSTRUCTION MATERIALS - 0.9%
Cemex SA de CV, ADR, Certificate
of Participation 149,900 5,991,503
-------------
Construction Materials Total 5,991,503
PAPER & FOREST PRODUCTS - 0.6%
Stora Enso Oyj, Class R 111,100 1,692,115
UPM-Kymmene Oyj 112,100 2,502,998
-------------
Paper & Forest Products Total 4,195,113
-------------
MATERIALS TOTAL 37,602,279
TELECOMMUNICATION SERVICES - 5.2%
DIVERSIFIED TELECOMMUNICATION SERVICES - 3.2%
Belgacom SA (a) 90,300 3,793,815
Deutsche Telekom AG, Registered
Shares (a) 219,345 4,595,628
France Telecom SA 160,300 4,842,961
Nippon Telegraph & Telephone Corp. 778 3,372,766
Royal Koninklijke KPN NV 281,410 2,723,316
Singapore Telecommunications Ltd. 1,291,000 2,081,897
-------------
Diversified Telecommunication Services Total 21,410,383
WIRELESS TELECOMMUNICATION SERVICES - 2.0%
NTT DoCoMo, Inc. 1,158 1,966,527
Vodafone Group PLC 4,566,860 11,975,471
-------------
Wireless Telecommunication Services Total 13,941,998
-------------
TELECOMMUNICATION SERVICES TOTAL 35,352,381
UTILITIES - 4.4%
ELECTRIC UTILITIES - 2.5%
E.ON AG 39,210 3,527,344
Enel S.p.A. 551,139 5,302,635
Fortum Oyj 204,600 3,923,252
Tokyo Electric Power Co., Inc. 166,800 4,090,734
-------------
Electric Utilities Total 16,843,965
GAS UTILITIES - 0.4%
Tokyo Gas Co., Ltd. 676,000 2,722,674
-------------
Gas Utilities Total 2,722,674
72 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia International Stock Fund
SHARES VALUE ($)
------- -------------
COMMON STOCKS - (CONTINUED)
UTILITIES - (CONTINUED)
MULTI-UTILITIES & UNREGULATED POWER - 1.5%
National Grid Transco PLC 487,236 4,740,872
Veolia Environnement 157,600 5,479,735
-------------
Multi-Utilities & Unregulated Power Total 10,220,607
-------------
UTILITIES TOTAL 29,787,246
Total Common Stocks
(Cost of $552,685,526) 663,959,838
PREFERRED STOCK - 0.8%
CONSUMER DISCRETIONARY - 0.8%
AUTOMOBILES - 0.8%
Porsche AG 7,300 5,274,572
-------------
Automobiles Total 5,274,572
-------------
CONSUMER DISCRETIONARY TOTAL 5,274,572
Total Preferred Stock
(Cost of $4,662,184) 5,274,572
SHORT-TERM OBLIGATION - 1.2% PAR ($)
Repurchase agreement with State Street
Bank & Trust Co., dated 02/28/05, due
03/01/05 at 2.500%, collateralized
by a U.S. Treasury Note maturing
09/30/06, market value of $8,038,881
(repurchase proceeds $7,878,547) 7,878,000 7,878,000
-------------
TOTAL SHORT-TERM OBLIGATION
(COST OF $7,878,000) 7,878,000
TOTAL INVESTMENTS - 99.9%
(COST OF $565,225,710) (b) 677,112,410
OTHER ASSETS & LIABILITIES, NET - 0.1% 851,823
NET ASSETS - 100.0% 677,964,233
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing security.
(b) Cost for federal income tax purposes is $565,225,710.
SUMMARY OF SECURITIES % OF TOTAL
BY COUNTRY VALUE INVESTMENTS
- ----------------------------------------------------------------------
United Kingdom $148,630,363 22.0%
Japan 144,331,396 21.3
France 59,905,954 8.8
Germany 43,029,566 6.4
Netherlands 39,492,298 5.8
Switzerland 33,958,644 5.0
Italy 30,348,973 4.5
Sweden 19,654,888 2.9
United States* 17,920,671 2.6
Canada 17,879,772 2.6
Singapore 16,680,638 2.5
Ireland 14,574,072 2.2
Finland 11,964,873 1.8
Hong Kong 11,544,727 1.7
Spain 10,987,581 1.6
Norway 10,622,819 1.6
Austria 6,066,855 0.9
Mexico 5,991,503 0.9
South Korea 5,984,419 0.9
Belgium 5,620,771 0.8
Australia 5,343,446 0.8
Greece 4,758,409 0.7
Israel 4,257,554 0.6
Denmark 3,360,254 0.5
Panama 2,267,646 0.3
Luxembourg 1,934,318 0.3
------------ -----
$677,112,410 100.0%
============ =====
* Includes short-term obligation.
Certain securities are listed by country of underlying exposure but may trade
predominately on other exchanges.
At February 28, 2005, the Fund held investments in the following sectors:
% OF
SECTOR NET ASSETS
- ----------------------------------------------------------------------
Financials 24.7%
Consumer Discretionary 12.9
Industrials 12.5
Energy 9.9
Health Care 8.9
Consumer Staples 8.7
Information Technology 6.0
Materials 5.5
Telecommunication Services 5.2
Utilities 4.4
Short-Term Obligation 1.2
Other Assets & Liabilities, Net 0.1
-----
100.0%
=====
ACRONYM NAME
------- ----
ADR American Depositary Receipt
See Accompanying Notes to Financial Statements. | 73
INVESTMENT PORTFOLIO ___________________________________________________________
February 28, 2005 (Unaudited) Columbia Mid Cap Growth Fund
SHARES VALUE ($)
------- -------------
COMMON STOCKS - 99.5%
CONSUMER DISCRETIONARY - 20.7%
AUTO COMPONENTS - 0.9%
Autoliv, Inc. 153,300 7,655,802
-------------
Auto Components Total 7,655,802
HOTELS, RESTAURANTS & LEISURE - 5.1%
Applebee's International, Inc. 264,640 7,544,887
Cheesecake Factory, Inc. (a) 298,620 10,162,039
Four Seasons Hotels, Inc. 28,340 2,037,079
Harrah's Entertainment, Inc. 83,970 5,507,592
Hilton Hotels Corp. 235,130 4,951,838
Marriott International, Inc., Class A 72,860 4,670,326
Yum! Brands, Inc. 198,540 9,684,781
-------------
Hotels, Restaurants & Leisure Total 44,558,542
HOUSEHOLD DURABLES - 5.0%
Black & Decker Corp. 29,680 2,461,066
Centex Corp. 28,450 1,809,135
D.R. Horton, Inc. 73,610 3,221,174
Harman International Industries, Inc. 103,080 11,562,483
Tempur-Pedic International, Inc. (a) 1,245,720 23,855,538
-------------
Household Durables Total 42,909,396
LEISURE EQUIPMENT & PRODUCTS - 0.8%
Marvel Enterprises, Inc. (a) 387,990 6,836,384
-------------
Leisure Equipment & Products Total 6,836,384
MEDIA - 2.3%
Grupo Televisa SA, ADR 31,210 2,011,485
Lamar Advertising Co., Class A (a) 68,490 2,690,972
XM Satellite Radio Holdings, Inc.,
Class A (a) 476,390 15,701,814
-------------
Media Total 20,404,271
SPECIALTY RETAIL - 5.7%
Abercrombie & Fitch Co., Class A 79,200 4,253,040
Bed Bath & Beyond, Inc. (a) 73,370 2,752,842
Chico's FAS, Inc. (a) 379,540 11,177,453
PETCO Animal Supplies, Inc. (a) 187,650 6,650,316
PETsMART, Inc. 294,930 8,995,365
Urban Outfitters, Inc. (a) 374,140 15,560,483
-------------
Specialty Retail Total 49,389,499
TEXTILES, APPAREL & LUXURY GOODS - 0.9%
Coach, Inc. (a) 133,900 7,435,467
-------------
Textiles, Apparel & Luxury Goods Total 7,435,467
-------------
CONSUMER DISCRETIONARY TOTAL 179,189,361
CONSUMER STAPLES - 3.9%
FOOD & STAPLES RETAILING - 0.8%
Whole Foods Market, Inc. 65,900 6,775,838
-------------
Food & Staples Retailing Total 6,775,838
SHARES VALUE ($)
------- -------------
FOOD PRODUCTS - 2.3%
Bunge Ltd. 138,610 7,583,353
Corn Products International, Inc. 326,320 9,127,171
Hershey Foods Corp. 55,730 3,510,990
-------------
Food Products Total 20,221,514
PERSONAL PRODUCTS - 0.8%
Alberto-Culver Co. 64,280 3,359,916
Estee Lauder Companies, Inc., Class A 77,580 3,411,968
-------------
Personal Products Total 6,771,884
-------------
CONSUMER STAPLES TOTAL 33,769,236
ENERGY - 6.1%
ENERGY EQUIPMENT & SERVICES - 3.6%
BJ Services Co. 79,870 3,990,305
FMC Technologies, Inc. (a) 90,790 3,135,886
Nabors Industries Ltd. (a) 177,580 10,193,092
National-Oilwell, Inc. (a) 137,370 6,228,356
Weatherford International Ltd. (a) 121,070 7,216,983
-------------
Energy Equipment & Services Total 30,764,622
OIL & GAS - 2.5%
EOG Resources, Inc. 52,910 4,821,159
Murphy Oil Corp. 42,540 4,255,702
Range Resources Corp. 96,590 2,437,932
Ultra Petroleum Corp. (a) 71,490 4,028,461
XTO Energy, Inc. 136,185 6,199,141
-------------
Oil & Gas Total 21,742,395
-------------
ENERGY TOTAL 52,507,017
FINANCIALS - 5.5%
CAPITAL MARKETS - 1.7%
Ameritrade Holding Corp. (a) 193,330 2,055,098
E*TRADE Financial Corp. (a) 677,720 8,993,345
T. Rowe Price Group, Inc. 60,760 3,730,056
-------------
Capital Markets Total 14,778,499
COMMERCIAL BANKS - 1.8%
North Fork Bancorporation, Inc. 200,645 5,780,582
TCF Financial Corp. 112,320 3,105,648
Zions Bancorporation 98,110 6,485,071
-------------
Commercial Banks Total 15,371,301
CONSUMER FINANCE - 0.3%
First Marblehead Corp. (a) 39,565 2,751,746
-------------
Consumer Finance Total 2,751,746
DIVERSIFIED FINANCIAL SERVICES - 0.2%
Chicago Mercantile Exchange 9,760 2,016,611
-------------
Diversified Financial Services Total 2,016,611
74 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Mid Cap Growth Fund
SHARES VALUE ($)
------- -------------
COMMON STOCKS - (CONTINUED)
FINANCIALS - (CONTINUED)
INSURANCE - 0.7%
Ambac Financial Group, Inc. 82,610 6,425,406
-------------
Insurance Total 6,425,406
REAL ESTATE - 0.5%
St. Joe Co. 55,090 4,002,288
-------------
Real Estate Total 4,002,288
THRIFTS & MORTGAGE FINANCE - 0.3%
Doral Financial Corp. 54,000 2,141,640
-------------
Thrifts & Mortgage Finance Total 2,141,640
-------------
FINANCIALS TOTAL 47,487,491
HEALTH CARE - 15.9%
BIOTECHNOLOGY - 2.0%
Amylin Pharmaceuticals, Inc. (a) 414,860 8,886,301
Genzyme Corp. (a) 141,850 7,956,367
-------------
Biotechnology Total 16,842,668
HEALTH CARE EQUIPMENT & SUPPLIES - 7.2%
Beckman Coulter, Inc. 74,730 5,264,729
Biomet, Inc. 135,710 5,729,676
Cooper Companies, Inc. 63,910 5,262,989
Fisher Scientific International, Inc. (a) 96,890 5,876,378
Gen-Probe, Inc. (a) 136,280 6,938,015
Kinetic Concepts, Inc. (a) 238,330 15,546,266
Nektar Therapeutics (a) 238,630 4,137,844
Thermo Electron Corp. (a) 288,080 7,910,677
Varian Medical Systems, Inc. (a) 161,210 5,792,275
-------------
Health Care Equipment & Supplies Total 62,458,849
HEALTH CARE PROVIDERS & SERVICES - 3.5%
Accredo Health, Inc. (a) 166,560 7,098,787
Community Health Systems, Inc. (a) 143,190 4,635,060
DaVita, Inc. (a) 280,265 11,838,394
WellPoint, Inc. (a) 55,430 6,765,786
-------------
Health Care Providers & Services Total 30,338,027
PHARMACEUTICALS - 3.2%
Endo Pharmaceuticals Holdings,
Inc. (a) 265,350 5,978,336
Medicis Pharmaceutical Corp., Class A 418,960 14,470,878
Teva Pharmaceutical Industries
Ltd., ADR 240,050 7,227,905
-------------
Pharmaceuticals Total 27,677,119
-------------
HEALTH CARE TOTAL 137,316,663
SHARES VALUE ($)
------- -------------
INDUSTRIALS - 10.9%
AEROSPACE & DEFENSE - 1.2%
L-3 Communications Holdings, Inc. 63,270 4,561,767
United Defense Industries, Inc. 101,290 5,542,589
-------------
Aerospace & Defense Total 10,104,356
AIR FREIGHT & LOGISTICS - 1.5%
C.H. Robinson Worldwide, Inc. 174,760 9,576,848
Expeditors International of
Washington, Inc. 61,930 3,437,734
-------------
Air Freight & Logistics Total 13,014,582
BUILDING PRODUCTS - 0.5%
Masco Corp. 117,420 3,959,402
-------------
Building Products Total 3,959,402
COMMERCIAL SERVICES & SUPPLIES - 5.7%
ChoicePoint, Inc. (a) 228,520 9,209,356
Cintas Corp. 66,300 2,902,614
Corporate Executive Board Co. 185,580 11,608,029
Education Management Corp. (a) 156,020 4,574,507
Manpower, Inc. 307,980 13,458,726
Robert Half International, Inc. 248,890 7,260,121
-------------
Commercial Services & Supplies Total 49,013,353
CONSTRUCTION & ENGINEERING - 1.0%
Jacobs Engineering Group, Inc. (a) 162,960 9,122,501
-------------
Construction & Engineering Total 9,122,501
MACHINERY - 0.7%
Joy Global, Inc. 73,920 2,716,560
Terex Corp. (a) 72,260 3,266,152
-------------
Machinery Total 5,982,712
ROAD & RAIL - 0.3%
Landstar System, Inc. (a) 85,570 3,001,796
-------------
Road & Rail Total 3,001,796
-------------
INDUSTRIALS TOTAL 94,198,702
INFORMATION TECHNOLOGY - 25.0%
COMMUNICATIONS EQUIPMENT - 3.8%
Avocent Corp. (a) 111,330 3,814,166
Comverse Technology, Inc. (a) 356,550 8,275,525
Harris Corp. 125,600 8,377,520
Juniper Networks, Inc. (a) 197,170 4,247,042
Polycom, Inc. (a) 264,320 4,279,341
Tellabs, Inc. (a) 612,080 4,339,647
-------------
Communications Equipment Total 33,333,241
COMPUTERS & PERIPHERALS - 1.8%
Apple Computer, Inc. (a) 219,300 9,837,798
SanDisk Corp. (a) 204,470 5,496,154
-------------
Computers & Peripherals Total 15,333,952
See Accompanying Notes to Financial Statements. | 75
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Mid Cap Growth Fund
SHARES VALUE ($)
------- -------------
COMMON STOCKS - (CONTINUED)
INFORMATION TECHNOLOGY - (CONTINUED)
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.6%
Dolby Laboratories, Inc., Class A (a) 66,800 1,541,744
FLIR Systems, Inc. (a) 126,930 3,966,563
-------------
Electronic Equipment & Instruments Total 5,508,307
INTERNET SOFTWARE & SERVICES - 0.9%
Ask Jeeves, Inc. (a) 156,200 3,570,732
VeriSign, Inc. (a) 139,970 3,837,977
-------------
Internet Software & Services Total 7,408,709
IT SERVICES - 2.2%
Cognizant Technology Solutions
Corp., Class A (a) 232,710 10,990,893
Iron Mountain, Inc. (a) 193,240 5,227,142
SunGard Data Systems, Inc. (a) 103,470 2,701,602
-------------
IT Services Total 18,919,637
OFFICE ELECTRONICS - 0.5%
Zebra Technologies Corp., Class A (a) 90,680 4,522,212
-------------
Office Electronics Total 4,522,212
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 8.6%
Advanced Micro Devices (a) 566,880 9,892,056
Altera Corp. (a) 155,630 3,227,766
Broadcom Corp., Class A (a) 325,090 10,484,152
Linear Technology Corp. 205,220 8,015,893
Marvell Technology Group Ltd. (a) 409,110 14,969,335
Microchip Technology, Inc. 176,680 4,851,633
National Semiconductor Corp. 176,810 3,527,360
NVIDIA Corp. (a) 305,260 8,849,487
Silicon Laboratories, Inc. (a) 297,050 10,426,455
-------------
Semiconductors & Semiconductor Equipment Total 74,244,137
SOFTWARE - 6.6%
Amdocs Ltd. (a) 222,470 6,529,495
BMC Software, Inc. (a) 234,040 3,498,898
Business Objects SA, ADR (a) 111,450 3,116,142
Check Point Software Technologies
Ltd. (a) 345,880 7,654,324
Citrix Systems, Inc. (a) 368,840 8,298,900
Hyperion Solutions Corp. (a) 134,580 6,793,598
Mercury Interactive Corp. (a) 232,570 10,670,312
Shanda Interactive Entertainment
Ltd., ADS (a) 151,700 4,585,891
VERITAS Software Corp. (a) 249,770 6,049,429
-------------
Software Total 57,196,989
-------------
INFORMATION TECHNOLOGY TOTAL 216,467,184
SHARES VALUE ($)
------- -------------
MATERIALS - 7.0%
CHEMICALS - 2.1%
Potash Corp. of Saskatchewan, Inc. 208,920 18,556,274
-------------
Chemicals Total 18,556,274
CONSTRUCTION MATERIALS - 0.3%
Florida Rock Industries, Inc. 36,600 2,348,622
-------------
Construction Materials Total 2,348,622
METALS & MINING - 4.6%
Allegheny Technologies, Inc. 113,730 2,798,895
CONSOL Energy, Inc. 54,130 2,481,319
Freeport-McMoRan Copper &
Gold, Inc., Class B 129,100 5,398,962
Inco Ltd. (a) 309,060 12,825,990
Peabody Energy Corp. 81,940 7,956,374
Phelps Dodge Corp. 81,290 8,653,321
-------------
Metals & Mining Total 40,114,861
-------------
MATERIALS TOTAL 61,019,757
TELECOMMUNICATION SERVICES - 4.3%
WIRELESS TELECOMMUNICATION SERVICES - 4.3%
American Tower Corp., Class A (a) 165,240 3,028,849
Crown Castle International Corp. (a) 526,600 8,604,644
Millicom International Cellular SA (a) 222,360 4,987,535
Mobile TeleSystems, ADR 183,310 7,348,898
Nextel Partners, Inc., Class A (a) 213,330 4,247,400
SpectraSite, Inc. (a) 40,560 2,506,608
VimpelCom, ADR (a) 90,070 3,611,807
Western Wireless Corp., Class A (a) 69,460 2,729,778
-------------
Wireless Telecommunication Services Total 37,065,519
-------------
TELECOMMUNICATION SERVICES TOTAL 37,065,519
UTILITIES - 0.2%
MULTI-UTILITIES & UNREGULATED POWER - 0.2%
AES Corp. (a) 124,570 2,085,302
-------------
Multi-Utilities & Unregulated Power Total 2,085,302
-------------
UTILITIES TOTAL 2,085,302
Total Common Stocks
(Cost of $736,575,108) 861,106,232
CONVERTIBLE PREFERRED STOCK - 0.0%
INFORMATION TECHNOLOGY - 0.0%
INTERNET SOFTWARE & SERVICES - 0.0%
Network Specialists, Inc.,
Series A (a)(b)(c) 394,218 3,942
-------------
Internet Software & Services Total 3,942
-------------
INFORMATION TECHNOLOGY TOTAL 3,942
Total Convertible Preferred Stock
(Cost of $3,000,000) 3,942
76 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Mid Cap Growth Fund
PAR ($) VALUE ($)
------- -------------
SHORT-TERM OBLIGATION - 0.3%
Repurchase agreement with State Street
Bank & Trust Co., dated 02/28/05, due
03/01/05 at 2.500%, collateralized by
a U.S. Treasury Note maturing 09/30/06,
market value of $2,364,377 (repurchase
proceeds $2,316,161) 2,316,000 2,316,000
-------------
Total Short-Term Obligation
(Cost of $2,316,000) 2,316,000
TOTAL INVESTMENTS - 99.8%
(COST OF $741,891,108) (D) 863,426,174
OTHER ASSETS & LIABILITIES, NET - 0.2% 1,478,105
NET ASSETS - 100.0% 864,904,279
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing security.
(b) Represents fair value as determined in good faith under procedures approved
by the Board of Directors.
(c) Security exempt from registration pursuant to Rule 144A under the Securities
Act of 1933. This security may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At February 28,
2005, the value of this security represents less than 0.1% of net assets.
(d) Cost for federal income tax purposes is $741,891,108.
At February 28, 2005, the Fund held investments in the following sectors:
% OF
SECTOR NET ASSETS
----------------------------------------------------------------
Information Technology 25.0%
Consumer Discretionary 20.7
Health Care 15.9
Industrials 10.9
Materials 7.0
Energy 6.1
Financials 5.5
Telecommunication Services 4.3
Consumer Staples 3.9
Utilities 0.2
Short-Term Obligation 0.3
Other Assets & Liabilities, Net 0.2
-----
100.0%
=====
ACRONYM NAME
------- ----
ADR American Depositary Receipt
ADS American Depositary Share
See Accompanying Notes to Financial Statements. | 77
INVESTMENT PORTFOLIO ___________________________________________________________
February 28, 2005 (Unaudited) Columbia Small Cap Growth Fund
SHARES VALUE ($)
------- -------------
COMMON STOCKS - 99.8%
CONSUMER DISCRETIONARY - 12.7%
AUTO COMPONENTS - 0.5%
Autoliv, Inc. 25,761 1,286,504
-------------
Auto Components Total 1,286,504
HOTELS, RESTAURANTS & LEISURE - 5.7%
Applebee's International, Inc. 53,510 1,525,570
Buffalo Wild Wings, Inc. (a) 41,150 1,551,355
CBRL Group, Inc. 24,349 1,042,381
Cheesecake Factory, Inc. (a) 40,030 1,362,221
P.F. Chang's China Bistro, Inc. (a) 37,650 2,063,596
Panera Bread Co., Class A (a) 20,460 1,093,792
RARE Hospitality International, Inc. (a) 82,090 2,401,953
Scientific Games Corp., Class A (a) 122,450 3,149,414
WMS Industries, Inc. (a) 22,050 661,280
-------------
Hotels, Restaurants & Leisure Total 14,851,562
HOUSEHOLD DURABLES - 2.6%
Tempur-Pedic International, Inc. (a) 350,140 6,705,181
-------------
Household Durables Total 6,705,181
INTERNET & CATALOG RETAIL - 0.5%
Blue Nile, Inc. (a) 51,190 1,437,927
-------------
Internet & Catalog Retail Total 1,437,927
LEISURE EQUIPMENT & PRODUCTS - 0.3%
Marvel Enterprises, Inc. (a) 43,530 766,999
-------------
Leisure Equipment & Products Total 766,999
MEDIA - 1.1%
Getty Images, Inc. (a) 41,942 2,992,142
-------------
Media Total 2,992,142
SPECIALTY RETAIL - 1.5%
PETCO Animal Supplies, Inc. (a) 76,702 2,718,319
Too, Inc. (a) 49,490 1,314,454
-------------
Specialty Retail Total 4,032,773
TEXTILES, APPAREL & LUXURY GOODS - 0.5%
Quiksilver, Inc. (a) 40,650 1,284,134
-------------
Textiles, Apparel & Luxury Goods Total 1,284,134
-------------
CONSUMER DISCRETIONARY TOTAL 33,357,222
CONSUMER STAPLES - 1.3%
FOOD PRODUCTS - 1.3%
Bunge Ltd. 29,782 1,629,373
Corn Products International, Inc. 60,070 1,680,158
-------------
Food Products Total 3,309,531
-------------
CONSUMER STAPLES TOTAL 3,309,531
SHARES VALUE ($)
------- -------------
ENERGY - 7.8%
ENERGY EQUIPMENT & SERVICES - 4.2%
Atwood Oceanics, Inc. (a) 35,690 2,453,687
CAL Dive International, Inc. (a) 27,324 1,387,513
Grey Wolf, Inc. (a) 224,740 1,458,563
Key Energy Services, Inc. (a) 190,999 2,639,606
National-Oilwell, Inc. (a) 68,520 3,106,697
-------------
Energy Equipment & Services Total 11,046,066
OIL & GAS - 3.6%
Cheniere Energy, Inc. (a) 33,020 2,456,688
KFx, Inc. (a) 66,980 1,138,660
Quicksilver Resources, Inc. (a) 18,630 927,402
Range Resources Corp. 52,550 1,326,362
Toreador Resources Corp. (a) 42,810 1,041,139
Warren Resources, Inc. (a) 95,280 1,124,304
XTO Energy, Inc. 30,460 1,386,539
-------------
Oil & Gas Total 9,401,094
-------------
ENERGY TOTAL 20,447,160
FINANCIALS - 5.9%
CAPITAL MARKETS - 1.8%
Affiliated Managers Group, Inc. (a) 61,401 3,976,329
optionsXpress Holdings, Inc. (a) 41,160 710,010
-------------
Capital Markets Total 4,686,339
COMMERCIAL BANKS - 0.9%
MB Financial, Inc. 20,942 850,455
Umpqua Holdings Corp. 67,801 1,621,122
-------------
Commercial Banks Total 2,471,577
INSURANCE - 1.3%
Allmerica Financial Corp. (a) 27,690 991,302
ProAssurance Corp. (a) 58,447 2,367,103
-------------
Insurance Total 3,358,405
THRIFTS & MORTGAGE FINANCE - 1.9%
Commercial Capital Bancorp, Inc. 167,750 3,623,400
Sterling Financial Corp. (a) 32,562 1,241,263
-------------
Thrifts & Mortgage Finance Total 4,864,663
-------------
FINANCIALS TOTAL 15,380,984
HEALTH CARE - 21.0%
BIOTECHNOLOGY - 4.7%
Alexion Pharmaceuticals, Inc. (a) 53,090 1,239,651
Alkermes, Inc. (a) 56,340 658,051
Cubist Pharmaceuticals, Inc. (a) 178,070 1,834,121
CV Therapeutics, Inc. (a) 40,190 881,367
Digene Corp. (a) 91,260 2,192,978
Nabi Biopharmaceuticals (a) 139,780 1,775,206
Onyx Pharmaceuticals, Inc. (a) 19,105 552,899
Rigel Pharmaceuticals, Inc. (a) 89,380 1,666,043
United Therapeutics Corp. (a) 34,470 1,565,972
-------------
Biotechnology Total 12,366,288
78 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Small Cap Growth Fund
SHARES VALUE ($)
------- -------------
COMMON STOCKS - (CONTINUED)
HEALTH CARE - (CONTINUED)
HEALTH CARE EQUIPMENT & SUPPLIES - 3.6%
Advanced Neuromodulation
Systems, Inc. (a) 24,760 730,420
ArthroCare Corp. (a) 63,752 1,837,333
Kyphon, Inc. (a) 69,300 1,703,394
Nektar Therapeutics (a) 81,800 1,418,412
ResMed, Inc. (a) 62,458 3,681,899
-------------
Health Care Equipment & Supplies Total 9,371,458
HEALTH CARE PROVIDERS & SERVICES - 9.6%
Accredo Health, Inc. (a) 21,680 924,001
Cerner Corp. (a) 34,298 1,786,926
Chemed Corp. 23,680 1,690,752
DaVita, Inc. (a) 95,620 4,038,989
HealthExtras, Inc. (a) 203,822 3,308,031
ICON PLC, ADR (a) 98,523 3,523,182
IDX Systems Corp. (a) 62,586 2,147,326
Renal Care Group, Inc. (a) 137,231 5,406,901
United Surgical Partners
International, Inc. (a) 56,132 2,304,780
-------------
Health Care Providers & Services Total 25,130,888
PHARMACEUTICALS - 3.1%
Connetics Corp. (a) 66,670 1,650,083
MGI Pharma, Inc. (a) 80,735 1,848,831
Salix Pharmaceuticals Ltd. (a) 286,208 4,645,156
-------------
Pharmaceuticals Total 8,144,070
-------------
HEALTH CARE TOTAL 55,012,704
INDUSTRIALS - 16.1%
AEROSPACE & DEFENSE - 3.2%
BE Aerospace, Inc. (a) 165,990 1,996,860
Engineered Support Systems, Inc. 14,680 811,510
United Defense Industries, Inc. 103,491 5,663,028
-------------
Aerospace & Defense Total 8,471,398
AIR FREIGHT & LOGISTICS - 0.5%
UTI Worldwide, Inc. 16,032 1,188,933
-------------
Air Freight & Logistics Total 1,188,933
COMMERCIAL SERVICES & SUPPLIES - 3.6%
Corporate Executive Board Co. 58,906 3,684,570
Education Management Corp. (a) 66,834 1,959,573
Huron Consulting Group, Inc. (a) 47,690 1,073,979
Resources Connection, Inc. (a) 56,268 2,799,896
-------------
Commercial Services & Supplies Total 9,518,018
CONSTRUCTION & ENGINEERING - 1.9%
Dycom Industries, Inc. (a) 68,730 1,852,273
URS Corp. (a) 106,495 3,071,316
-------------
Construction & Engineering Total 4,923,589
SHARES VALUE ($)
------- -------------
ELECTRICAL EQUIPMENT - 0.5%
Roper Industries, Inc. 19,700 1,272,620
-------------
Electrical Equipment Total 1,272,620
MACHINERY - 5.7%
IDEX Corp. 56,910 2,247,945
Joy Global, Inc. 85,163 3,129,740
Kennametal, Inc. 59,608 2,925,561
Terex Corp. (a) 68,704 3,105,421
Wabtec Corp. 196,430 3,616,276
-------------
Machinery Total 15,024,943
MARINE - 0.7%
Dryships, Inc. (a) 77,520 1,732,572
-------------
Marine Total 1,732,572
-------------
INDUSTRIALS TOTAL 42,132,073
INFORMATION TECHNOLOGY - 29.3%
COMMUNICATIONS EQUIPMENT - 6.7%
Alvarion Ltd. (a) 115,440 1,165,944
Avocent Corp. (a) 31,010 1,062,403
Carrier Access Corp. (a) 148,810 1,035,718
F5 Networks, Inc. (a) 60,895 3,354,705
Ixia (a) 158,012 2,845,796
Packeteer, Inc. (a) 208,690 3,301,476
Polycom, Inc. (a) 74,071 1,199,209
SiRF Technology Holdings, Inc. (a) 306,200 3,441,688
-------------
Communications Equipment Total 17,406,939
COMPUTERS & PERIPHERALS - 1.6%
Stratasys, Inc. (a) 81,020 2,346,339
Synaptics, Inc. (a) 71,290 1,703,118
-------------
Computers & Peripherals Total 4,049,457
ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.3%
Benchmark Electronics, Inc. (a) 42,340 1,376,897
Dolby Laboratories, Inc., Class A (a) 19,250 444,290
Trimble Navigation Ltd. (a) 45,900 1,653,318
-------------
Electronic Equipment & Instruments Total 3,474,505
INTERNET SOFTWARE & SERVICES - 3.2%
Ask Jeeves, Inc. (a) 115,998 2,651,715
Digital River, Inc. (a) 37,640 1,134,093
Equinix, Inc. (a) 59,590 2,609,446
Imergent, Inc. (a) 39,500 638,320
Infocrossing, Inc. (a) 31,500 590,940
WebEx Communications, Inc. (a) 34,060 795,982
-------------
Internet Software & Services Total 8,420,496
See Accompanying Notes to Financial Statements. | 79
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Small Cap Growth Fund
SHARES VALUE ($)
------- -------------
COMMON STOCKS - (CONTINUED)
INFORMATION TECHNOLOGY - (CONTINUED)
IT SERVICES - 4.6%
Anteon International Corp. (a) 76,030 2,886,099
CACI International, Inc., Class A (a) 65,870 3,554,345
Cognizant Technology Solutions Corp.,
Class A (a) 34,156 1,613,188
Euronet Worldwide, Inc. (a) 62,330 1,614,970
Global Payments, Inc. 44,046 2,445,434
-------------
IT Services Total 12,114,036
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 4.3%
ATMI, Inc. (a) 45,370 1,234,971
Cambridge Display Technology, Inc. (a) 84,060 668,277
Microsemi Corp. (a) 99,310 1,614,781
Microtune, Inc. (a) 283,515 1,389,224
Sigmatel, Inc. (a) 28,500 1,188,165
Silicon Laboratories, Inc. (a) 112,741 3,957,209
Volterra Semiconductor Corp. (a) 77,920 1,145,424
-------------
Semiconductors & Semiconductor Equipment Total 11,198,051
SOFTWARE - 7.6%
Agile Software Corp. (a) 172,040 1,180,194
Altiris, Inc. (a) 75,298 2,200,961
Citrix Systems, Inc. (a) 74,674 1,680,165
Embarcadero Technologies, Inc. (a) 364,294 2,458,984
Epicor Software Corp. (a) 166,260 2,573,705
Hyperion Solutions Corp. (a) 25,771 1,300,920
Macromedia, Inc. (a) 91,120 3,088,057
Parametric Technology Corp. (a) 386,330 2,221,398
Quest Software, Inc. (a) 68,840 934,159
SERENA Software, Inc. (a) 33,270 768,537
The9 Ltd., ADR (a) 88,220 1,598,546
-------------
Software Total 20,005,626
-------------
INFORMATION TECHNOLOGY TOTAL 76,669,110
MATERIALS - 3.4%
CHEMICALS - 2.1%
Airgas, Inc. 80,924 2,031,192
OM Group, Inc. (a) 106,512 3,395,603
-------------
Chemicals Total 5,426,795
METALS & MINING - 1.3%
Allegheny Technologies, Inc. 48,942 1,204,462
Alpha Natural Resources, Inc. (a) 23,440 609,440
Arch Coal, Inc. 37,857 1,688,044
-------------
Metals & Mining Total 3,501,946
-------------
MATERIALS TOTAL 8,928,741
TELECOMMUNICATION SERVICES - 2.3%
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.5%
Premiere Global Services, Inc. (a) 142,850 1,454,213
-------------
Diversified Telecommunication Services Total 1,454,213
SHARES VALUE ($)
------- -------------
WIRELESS TELECOMMUNICATION SERVICES - 1.8%
Leap Wireless International, Inc. (a) 34,370 921,116
Millicom International Cellular SA (a) 97,364 2,183,874
SBA Communications Corp., Class A (a) 178,757 1,555,186
-------------
Wireless Telecommunication Services Total 4,660,176
-------------
TELECOMMUNICATION SERVICES TOTAL 6,114,389
Total Common Stocks
(Cost of $237,835,973) 261,351,914
SHORT-TERM OBLIGATION - 4.5% PAR ($)
Repurchase agreement with State
Street Bank & Trust Co., dated
02/28/05, due 03/01/05 at 2.500%,
collateralized by a U.S. Treasury
Note maturing 09/30/06, market
value of $12,190,228 (repurchase
proceeds $11,948,830) 11,948,000 11,948,000
-------------
Total Short-Term Obligation
(Cost of $11,948,000) 11,948,000
TOTAL INVESTMENTS - 104.3%
(COST OF $249,783,973) (b) 273,299,914
OTHER ASSETS & LIABILITIES, NET - (4.3)% (11,372,601)
NET ASSETS - 100.0% 261,927,313
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing security.
(b) Cost for federal income tax purposes is $249,783,973.
At February 28, 2005, the Fund held investments in the following sectors:
% OF
SECTOR NET ASSETS
----------------------------------------------------------------
Information Technology 29.3%
Health Care 21.0
Industrials 16.1
Consumer Discretionary 12.7
Energy 7.8
Financials 5.9
Materials 3.4
Telecommunication Services 2.3
Consumer Staples 1.3
Short-Term Obligation 4.5
Other Assets & Liabilities, Net (4.3)
-----
100.0%
=====
ACRONYM NAME
------- ----
ADR American Depositary Receipt
80 | See Accompanying Notes to Financial Statements.
INVESTMENT PORTFOLIO ___________________________________________________________
February 28, 2005 (Unaudited) Columbia Real Estate Equity Fund
SHARES VALUE ($)
------- -------------
COMMON STOCKS - 95.1%
CONSUMER DISCRETIONARY - 16.0%
HOTELS, RESTAURANTS & LEISURE - 15.4%
Great Wolf Resorts, Inc. (a) 296,200 7,360,570
Hilton Hotels Corp. 2,321,900 48,899,214
La Quinta Corp. (a) 1,230,000 11,377,500
Marriott International, Inc., Class A 485,300 31,107,730
Starwood Hotels & Resorts
Worldwide, Inc. 625,900 35,826,516
-------------
Hotels, Restaurants & Leisure Total 134,571,530
MULTILINE RETAIL - 0.6%
Sears, Roebuck & Co. 103,400 5,162,762
-------------
Multiline Retail Total 5,162,762
-------------
CONSUMER DISCRETIONARY TOTAL 139,734,292
FINANCIALS - 74.1%
REAL ESTATE - 74.1%
Alexandria Real Estate Equities,
Inc., REIT 570,400 38,205,392
Archstone-Smith Trust, REIT 517,971 17,522,959
AvalonBay Communities, Inc., REIT 266,400 18,514,800
Boston Properties, Inc., REIT 227,400 13,598,520
Brookfield Properties Corp. 412,600 16,289,448
CenterPoint Properties Trust, REIT 461,800 20,208,368
Corporate Office Properties
Trust, REIT 371,180 9,817,711
Cousins Properties, Inc., REIT 1,108,050 30,061,396
Duke Realty Corp., REIT 478,800 15,168,384
Equity Office Properties Trust, REIT 891,737 26,903,705
Equity Residential, REIT 1,081,106 35,471,088
Essex Property Trust, Inc., REIT 99,600 7,179,168
General Growth Properties, Inc., REIT 963,080 33,611,492
Highwoods Properties, Inc., REIT 340,900 8,791,811
Home Properties, Inc., REIT 109,800 4,439,214
Host Marriott Corp., REIT 1,965,300 31,405,494
iStar Financial, Inc., REIT 1,117,250 47,471,952
Kimco Realty Corp., REIT 503,500 26,740,885
Liberty Property Trust, REIT 483,400 20,041,764
Newcastle Investment Corp., REIT 312,900 9,649,836
Pan Pacific Retail Properties, Inc.,
REIT 299,900 17,439,185
ProLogis Trust, REIT 680,906 27,072,823
Public Storage, Inc., REIT 584,532 31,892,066
Regency Centers Corp., REIT 652,000 33,252,000
Simon Property Group, Inc., REIT 785,256 48,654,462
SL Green Realty Corp., REIT 259,000 14,602,420
St. Joe Co. 184,400 13,396,660
United Dominion Realty Trust,
Inc., REIT 502,800 11,111,880
Vornado Realty Trust, REIT 274,000 18,823,800
-------------
Real Estate Total 647,338,683
-------------
FINANCIALS TOTAL 647,338,683
SHARES VALUE ($)
------- -------------
MATERIALS - 5.0%
PAPER & FOREST PRODUCTS - 5.0%
Bowater, Inc. 639,300 24,824,019
International Paper Co. 245,100 9,154,485
MeadWestvaco Corp. 310,100 9,724,736
-------------
Paper & Forest Products Total 43,703,240
-------------
MATERIALS TOTAL 43,703,240
Total Common Stocks
(Cost of $513,843,484) 830,776,215
INCOME DEPOSIT SECURITIES - 2.6%
CONSUMER DISCRETIONARY - 1.0%
HOTELS, RESTAURANTS & LEISURE - 1.0%
Centerplate, Inc. 665,500 8,664,810
-------------
Hotels, Restaurants & Leisure Total 8,664,810
-------------
CONSUMER DISCRETIONARY TOTAL 8,664,810
CONSUMER STAPLES - 1.1%
FOOD & STAPLES RETAILING - 1.1%
B&G Foods, Inc. 628,600 9,366,140
-------------
Food & Staples Retailing Total 9,366,140
-------------
CONSUMER STAPLES TOTAL 9,366,140
TELECOMMUNICATION SERVICES - 0.5%
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.5%
Otelco, Inc. 302,000 4,671,940
-------------
Diversified Telecommunication Services Total 4,671,940
-------------
TELECOMMUNICATION SERVICES TOTAL 4,671,940
Total Income Deposit Securities
(Cost of $24,015,605) 22,702,890
See Accompanying Notes to Financial Statements. | 81
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Real Estate Equity Fund
PAR ($) VALUE ($)
------- -------------
SHORT-TERM OBLIGATION - 2.1%
Repurchase agreement with State Street
Bank & Trust Co., dated 02/28/05, due
03/01/05 at 2.500%, collateralized by
a U.S. Treasury Note maturing
09/30/06, market value of $19,343,090
(repurchase proceeds $18,964,317) 18,963,000 18,963,000
-------------
Total Short-Term Obligation
(Cost of $18,963,000) 18,963,000
TOTAL INVESTMENTS - 99.8%
(COST OF $556,822,089) (b) 872,442,105
OTHER ASSETS & LIABILITIES, NET - 0.2% 1,360,619
NET ASSETS - 100.0% 873,802,724
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing security.
(b) Cost for federal income tax purposes is $556,822,089.
At February 28, 2005, the Fund held investments in the following sectors:
% OF
SECTOR NET ASSETS
----------------------------------------------------------------
Financials 74.1%
Consumer Discretionary 17.0
Materials 5.0
Consumer Staples 1.1
Telecommunication Services 0.5
Short-Term Obligation 2.1
Other Assets & Liabilities, Net 0.2
-----
100.0%
=====
ACRONYM NAME
------- ----
REIT Real Estate Investment Trust
82 | See Accompanying Notes to Financial Statements.
INVESTMENT PORTFOLIO _________________________________________________
February 28, 2005 (Unaudited) Columbia Technology Fund
SHARES VALUE ($)
------- -------------
COMMON STOCKS - 100.5%
CONSUMER DISCRETIONARY - 12.7%
HOTELS, RESTAURANTS & LEISURE - 0.5%
Sportingbet PLC (a) 36,710 231,150
-------------
Hotels, Restaurants & Leisure Total 231,150
HOUSEHOLD DURABLES - 1.7%
Harman International Industries, Inc. 6,400 717,888
-------------
Household Durables Total 717,888
INTERNET & CATALOG RETAIL - 3.9%
Blue Nile, Inc. (a) 14,875 417,839
eBay, Inc. (a) 30,000 1,285,200
-------------
Internet & Catalog Retail Total 1,703,039
LEISURE EQUIPMENT & PRODUCTS - 0.8%
Marvel Enterprises, Inc. (a) 20,000 352,400
-------------
Leisure Equipment & Products Total 352,400
MEDIA - 5.8%
Dolby Laboratories, Inc., Class A (a) 3,500 80,780
Lions Gate Entertainment Corp. (a) 100,000 1,062,000
Lodgenet Entertainment Corp. (a) 7,400 130,610
XM Satellite Radio Holdings, Inc.,
Class A (a) 38,150 1,257,424
-------------
Media Total 2,530,814
-------------
CONSUMER DISCRETIONARY TOTAL 5,535,291
CONSUMER STAPLES - 0.8%
FOOD & STAPLES RETAILING - 0.8%
Provide Commerce, Inc. (a) 12,000 344,100
-------------
Food & Staples Retailing Total 344,100
-------------
CONSUMER STAPLES TOTAL 344,100
HEALTH CARE - 3.1%
BIOTECHNOLOGY - 1.2%
Amylin Pharmaceuticals, Inc. (a) 12,000 257,040
Cubist Pharmaceuticals, Inc. (a) 20,000 206,000
Rigel Pharmaceuticals, Inc. (a) 2,500 46,600
-------------
Biotechnology Total 509,640
HEALTH CARE PROVIDERS & SERVICES - 0.9%
Adeza Biomedical Corp. (a) 30,300 409,050
-------------
Health Care Providers & Services Total 409,050
PHARMACEUTICALS - 1.0%
Salix Pharmaceuticals Ltd. (a) 26,100 423,603
-------------
Pharmaceuticals Total 423,603
-------------
HEALTH CARE TOTAL 1,342,293
SHARES VALUE ($)
------- -------------
INDUSTRIALS - 1.1%
COMMERCIAL SERVICES & SUPPLIES - 1.1%
Huron Consulting Group, Inc. (a) 4,500 101,340
SOURCECORP, Inc. (a) 17,300 361,224
-------------
Commercial Services & Supplies Total 462,564
-------------
INDUSTRIALS TOTAL 462,564
INFORMATION TECHNOLOGY - 67.8%
COMMUNICATIONS EQUIPMENT - 14.1%
Alvarion Ltd. (a) 33,400 337,340
Avaya, Inc. (a) 28,500 399,000
Carrier Access Corp. (a) 18,250 127,020
Comverse Technology, Inc. (a) 23,000 533,830
Harris Corp. 13,550 903,785
Nokia Oyj, ADR 131,000 2,114,340
SiRF Technology Holdings, Inc. (a) 126,800 1,425,232
ViaSat, Inc. (a) 16,000 318,080
-------------
Communications Equipment Total 6,158,627
COMPUTERS & PERIPHERALS - 5.0%
Apple Computer, Inc. (a) 19,000 852,340
Dell, Inc. (a) 12,500 501,125
Lexmark International, Inc., Class A (a) 3,000 240,390
Network Appliance, Inc. (a) 6,000 180,060
SanDisk Corp. (a) 15,500 416,640
-------------
Computers & Peripherals Total 2,190,555
ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.7%
Symbol Technologies, Inc. 20,000 354,600
Trimble Navigation Ltd. (a) 10,400 374,608
-------------
Electronic Equipment & Instruments Total 729,208
INTERNET SOFTWARE & SERVICES - 5.7%
Ask Jeeves, Inc. (a) 14,900 340,614
Digital River, Inc. (a) 5,000 150,650
Google, Inc. (a) 2,500 469,975
VeriSign, Inc. (a) 34,000 932,280
Yahoo!, Inc. (a) 18,600 600,222
-------------
Internet Software & Services Total 2,493,741
IT SERVICES - 3.7%
Cognizant Technology Solutions Corp.,
Class A (a) 13,260 626,270
Computer Sciences Corp. (a) 5,000 231,150
DST Systems, Inc. (a) 8,000 379,920
Global Payments, Inc. 7,000 388,640
-------------
IT Services Total 1,625,980
OFFICE ELECTRONICS - 0.8%
Zebra Technologies Corp., Class A (a) 6,625 330,389
-------------
Office Electronics Total 330,389
See Accompanying Notes to Financial Statements. | 83
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Technology Fund
SHARES VALUE ($)
------- -------------
COMMON STOCKS - (CONTINUED)
INFORMATION TECHNOLOGY - (CONTINUED)
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 21.2%
Advanced Micro Devices (a) 15,000 261,750
Analog Devices, Inc. 8,000 293,760
Applied Materials, Inc. (a) 25,000 437,500
Broadcom Corp., Class A (a) 20,275 653,869
Cambridge Display Technology, Inc. (a) 13,000 103,350
FormFactor, Inc. (a) 14,300 328,471
Lam Research Corp. (a) 4,800 150,912
Marvell Technology Group Ltd. (a) 39,300 1,437,987
Maxim Integrated Products, Inc. 3,500 150,570
Microtune, Inc. (a) 152,640 747,936
National Semiconductor Corp. 15,000 299,250
NVIDIA Corp. (a) 47,000 1,362,530
Samsung Electronics Co., Ltd., GDR (b) 2,700 699,300
Sigmatel, Inc. (a) 24,800 1,033,912
Silicon Laboratories, Inc. (a) 23,500 824,850
Tessera Technologies, Inc. (a) 5,000 203,700
Virage Logic Corp. (a) 19,000 251,370
-------------
Semiconductors & Semiconductor Equipment Total 9,241,017
SOFTWARE - 15.6%
Agile Software Corp. (a) 40,000 274,400
Amdocs Ltd. (a) 18,000 528,300
Business Objects SA, ADR (a) 10,000 279,600
Cadence Design Systems, Inc. (a) 24,000 330,720
Check Point Software Technologies
Ltd. (a) 12,000 265,560
Citrix Systems, Inc. (a) 20,000 450,000
Computer Associates International, Inc. 14,000 379,260
Epicor Software Corp. (a) 16,000 247,680
Macromedia, Inc. (a) 12,000 406,680
McAfee, Inc. (a) 18,000 416,340
Mercury Interactive Corp. (a) 14,000 642,320
Oracle Corp. (a) 30,000 387,300
Parametric Technology Corp. (a) 30,000 172,500
SAP AG, ADR 5,000 202,750
Shanda Interactive Entertainment
Ltd., ADS (a) 18,750 566,812
SPSS, Inc. (a) 9,500 184,300
Symantec Corp. (a) 20,000 440,200
The9 Ltd., ADR (a) 21,100 382,332
VERITAS Software Corp. (a) 10,000 242,200
-------------
Software Total 6,799,254
-------------
INFORMATION TECHNOLOGY TOTAL 29,568,771
TELECOMMUNICATION SERVICES - 15.0%
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.9%
Mahanagar Telephone Nigam Ltd., ADR 30,900 211,047
Maroc Telecom (a) 15,000 153,761
-------------
Diversified Telecommunication Services Total 364,808
SHARES VALUE ($)
------- -------------
WIRELESS TELECOMMUNICATION SERVICES - 14.1%
American Tower Corp., Class A (a) 47,600 872,508
China Unicom Ltd., ADR 30,000 266,700
Comtech Group, Inc. (a) 18,300 126,270
Crown Castle International Corp. (a) 55,000 898,700
JAMDAT Mobile, Inc. (a) 12,500 212,500
Leap Wireless International, Inc. (a) 7,500 201,000
Millicom International Cellular SA (a) 21,700 486,731
Mobile TeleSystems, ADR 22,000 881,980
NII Holdings, Inc. (a) 9,000 514,980
SBA Communications Corp., Class A (a) 77,500 674,250
SpectraSite, Inc. (a) 5,150 318,270
VimpelCom, ADR (a) 17,500 701,750
-------------
Wireless Telecommunication Services Total 6,155,639
-------------
TELECOMMUNICATION SERVICES TOTAL 6,520,447
Total Common Stocks
(Cost of $38,463,151) 43,773,466
SHORT-TERM OBLIGATION - 2.7% PAR ($)
Repurchase agreement with State
Street Bank & Trust Co., dated
02/28/05, due 03/01/05 at 2.500%,
collateralized by a U.S. Treasury Note
maturing 09/30/06, market value
of $1,219,521 (repurchase
proceeds $1,191,083) 1,191,000 1,191,000
-------------
Total Short-Term Obligation
(Cost of $1,191,000) 1,191,000
TOTAL INVESTMENTS - 103.2%
(COST OF $39,654,151) (c) 44,964,466
OTHER ASSETS & LIABILITIES, NET - (3.2)% (1,381,571)
NET ASSETS - 100.0% 43,582,895
84 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Technology Fund
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing security.
(b) Security exempt from registration pursuant to Rule 144A under the Securities
Act of 1933. This security may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At February 28,
2005, the value of this security represents 1.6% of net assets.
(c) Cost for federal income tax purposes is $39,654,151.
At February 28, 2005, the Fund held investments in the following sectors:
% OF
SECTOR NET ASSETS
----------------------------------------------------------------
Information Technology 67.8%
Telecommunication Services 15.0
Consumer Discretionary 12.7
Health Care 3.1
Industrials 1.1
Consumer Staples 0.8
Short-Term Obligation 2.7
Other Assets & Liabilities, Net (3.2)
-----
100.0%
=====
ACRONYM NAME
------- ----
ADR American Depositary Receipt
ADS American Depositary Shares
GDR Global Depositary Receipt
See Accompanying Notes to Financial Statements. | 85
INVESTMENT PORTFOLIO ___________________________________________________________
February 28, 2005 (Unaudited) Columbia Strategic Investor Fund
SHARES VALUE ($)
------- -------------
COMMON STOCKS - 74.5%
CONSUMER DISCRETIONARY - 9.2%
AUTO COMPONENTS - 1.3%
Modine Manufacturing Co. 52,500 1,708,875
Nokian Renkaat Oyj 26,600 4,710,921
-------------
Auto Components Total 6,419,796
HOTELS, RESTAURANTS & LEISURE - 0.7%
Fairmont Hotels & Resorts, Inc. 50,000 1,607,000
McDonald's Corp. 50,000 1,654,000
Six Flags, Inc. (a) 100,000 446,000
-------------
Hotels, Restaurants & Leisure Total 3,707,000
HOUSEHOLD DURABLES - 1.2%
Cavco Industries, Inc. (a) 26,000 697,580
Ekornes ASA 60,000 1,339,496
Leggett & Platt, Inc. 37,500 1,037,625
Makita Corp., ADR 62,000 1,184,820
Matsushita Electric Industrial
Co., Ltd., ADR 100,000 1,494,000
Pioneer Corp., ADR 30,000 527,400
-------------
Household Durables Total 6,280,921
INTERNET & CATALOG RETAIL - 0.4%
1-800-FLOWERS.COM, Inc.,
Class A (a) 100,000 750,000
IAC/InterActiveCorp (a) 57,500 1,293,750
-------------
Internet & Catalog Retail Total 2,043,750
LEISURE EQUIPMENT & PRODUCTS - 0.3%
Eastman Kodak Co. 47,500 1,614,525
-------------
Leisure Equipment & Products Total 1,614,525
MEDIA - 2.5%
Comcast Corp., Class A (a) 67,500 2,150,550
Entravision Communications Corp.,
Class A (a) 75,000 615,000
Grupo Televisa SA, ADR 20,000 1,289,000
Liberty Media Corp., Class A (a) 125,000 1,267,500
Liberty Media International, Inc.,
Class A (a) 5,500 237,765
McGraw-Hill Companies, Inc. 12,500 1,148,125
Media General, Inc., Class A 30,000 1,919,700
Time Warner, Inc. (a) 125,000 2,153,750
Westwood One, Inc. (a) 50,000 1,092,000
World Wrestling Entertainment, Inc. 50,000 633,000
-------------
Media Total 12,506,390
MULTILINE RETAIL - 2.2%
Big Lots, Inc. (a) 100,000 1,167,000
Dillard's, Inc., Class A 50,000 1,165,000
Fred's, Inc. 100,000 1,685,000
Kohl's Corp. (a) 20,000 957,400
May Department Stores Co. 62,500 2,156,875
SHARES VALUE ($)
------- -------------
Saks, Inc. (a) 75,000 1,139,250
Stockmann Oyj ABP, Class B 75,000 2,552,859
-------------
Multiline Retail Total 10,823,384
SPECIALTY RETAIL - 0.6%
Bombay Co., Inc. (a) 100,000 570,000
CarMax, Inc. (a) 47,500 1,567,500
Restoration Hardware, Inc. (a) 125,000 663,750
-------------
Specialty Retail Total 2,801,250
-------------
CONSUMER DISCRETIONARY TOTAL 46,197,016
CONSUMER STAPLES - 5.2%
BEVERAGES - 0.9%
Coca-Cola Co. 67,500 2,889,000
Coca-Cola Femsa, SA de CV, ADR 57,500 1,477,750
-------------
Beverages Total 4,366,750
FOOD & STAPLES RETAILING - 1.1%
Albertson's, Inc. 75,000 1,679,250
United Natural Foods, Inc. (a) 42,500 1,324,725
Walgreen Co. 62,500 2,676,875
-------------
Food & Staples Retailing Total 5,680,850
FOOD PRODUCTS - 1.4%
Campbell Soup Co. 30,000 831,000
Delta & Pine Land Co. 50,000 1,449,500
General Mills, Inc. 32,500 1,702,025
Hain Celestial Group, Inc. (a) 40,000 746,800
Unilever NV, NY Registered Shares 37,500 2,508,375
-------------
Food Products Total 7,237,700
HOUSEHOLD PRODUCTS - 0.4%
Kimberly-Clark Corp. 27,500 1,814,450
-------------
Household Products Total 1,814,450
PERSONAL PRODUCTS - 0.8%
Avon Products, Inc. 55,000 2,352,350
Natura Cosmeticos SA 52,500 1,545,907
-------------
Personal Products Total 3,898,257
TOBACCO - 0.6%
Altria Group, Inc. 50,000 3,282,500
-------------
Tobacco Total 3,282,500
-------------
CONSUMER STAPLES TOTAL 26,280,507
ENERGY - 9.9%
ENERGY EQUIPMENT & SERVICES - 5.4%
Core Laboratories NV (a) 50,000 1,344,500
GlobalSantaFe Corp. 30,000 1,125,000
Halliburton Co. 62,500 2,748,125
Input/Output, Inc. (a) 200,500 1,479,690
Nabors Industries Ltd. (a) 25,000 1,435,000
Newpark Resources, Inc. (a) 117,500 750,825
86 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Strategic Investor Fund
SHARES VALUE ($)
------- -------------
COMMON STOCKS - (CONTINUED)
ENERGY - (CONTINUED)
ENERGY EQUIPMENT & SERVICES - (CONTINUED)
Schlumberger Ltd. 57,500 4,338,375
Stolt Offshore SA, ADR (a) 100,000 785,000
TGS Nopec Geophysical Co., ASA (a) 105,000 3,334,574
Transocean, Inc. (a) 100,000 4,848,000
Varco International, Inc. (a) 75,000 2,828,250
Willbros Group, Inc. (a) 100,000 2,150,000
-------------
Energy Equipment & Services Total 27,167,339
OIL & GAS - 4.5%
Apache Corp. 20,000 1,257,600
BP PLC, ADR 37,500 2,434,500
ConocoPhillips 25,000 2,772,250
El Paso Corp. 40,000 493,200
Exxon Mobil Corp. 60,000 3,798,600
McMoRan Exploration Co. (a) 97,500 2,022,150
Newfield Exploration Co. (a) 45,000 3,341,250
Petroleo Brasileiro SA, ADR 30,000 1,464,000
Plains Exploration & Production Co. (a) 42,500 1,445,425
Statoil ASA, ADR 100,000 1,820,000
Valero Energy Corp. 21,000 1,496,040
-------------
Oil & Gas Total 22,345,015
-------------
ENERGY TOTAL 49,512,354
FINANCIALS - 11.1%
CAPITAL MARKETS - 2.0%
Bank of New York Co., Inc. 37,500 1,134,375
Charles Schwab Corp. 107,500 1,128,750
LaBranche & Co., Inc. (a) 50,000 462,500
Morgan Stanley 67,500 3,811,725
Nikko Cordial Corp. 130,000 647,242
Nomura Holdings, Inc., ADR 100,000 1,385,000
Piper Jaffray Companies, Inc. (a) 42,350 1,674,943
-------------
Capital Markets Total 10,244,535
COMMERCIAL BANKS - 3.0%
Allied Irish Banks PLC, ADR 30,000 1,282,500
Fifth Third Bancorp 27,500 1,231,175
HSBC Holdings PLC, ADR 37,500 3,130,875
ICICI Bank Ltd., ADR 47,500 1,075,875
Mitsubishi Tokyo Financial
Group, Inc., ADR 225,000 2,063,250
SunTrust Banks, Inc. 22,500 1,629,900
U.S. Bancorp 75,000 2,231,250
Zions Bancorporation 32,500 2,148,250
-------------
Commercial Banks Total 14,793,075
CONSUMER FINANCE - 0.2%
MBNA Corp. 42,500 1,078,225
-------------
Consumer Finance Total 1,078,225
SHARES VALUE ($)
------- -------------
DIVERSIFIED FINANCIAL SERVICES - 2.0%
Citigroup, Inc. 67,500 3,221,100
eSpeed, Inc., Class A (a) 50,000 449,000
GATX Corp. 62,500 1,873,750
JPMorgan Chase & Co. 120,200 4,393,310
-------------
Diversified Financial Services Total 9,937,160
INSURANCE - 2.7%
American International Group, Inc. 12,500 835,000
Chubb Corp. 10,000 791,100
Hannover Rueckversicherung AG,
Registered Shares 67,500 2,895,437
Jefferson-Pilot Corp. 30,000 1,468,800
Marsh & McLennan Companies, Inc. 35,000 1,142,750
Max Re Capital Ltd. 40,000 920,400
PartnerRe Ltd. 20,000 1,253,000
St. Paul Travelers Companies, Inc. 32,505 1,245,591
Wesco Financial Corp. 7,750 3,061,250
-------------
Insurance Total 13,613,328
REAL ESTATE - 0.6%
Crescent Real Estate Equities Co., REIT 30,000 489,000
Mitsubishi Estate Co., Ltd. 125,000 1,524,840
Post Properties, Inc., REIT 30,000 967,500
-------------
Real Estate Total 2,981,340
THRIFTS & MORTGAGE FINANCE - 0.6%
Freddie Mac 27,500 1,705,000
MGIC Investment Corp. 20,000 1,254,800
-------------
Thrifts & Mortgage Finance Total 2,959,800
-------------
FINANCIALS TOTAL 55,607,463
HEALTH CARE - 10.7%
BIOTECHNOLOGY - 1.2%
Amgen, Inc. (a) 27,500 1,694,275
Applera Corp. - Applied
Biosystems Group 50,000 1,027,000
Biogen Idec, Inc. (a) 20,000 773,000
MedImmune, Inc. (a) 32,500 782,600
Qiagen NV (a) 130,000 1,618,500
-------------
Biotechnology Total 5,895,375
HEALTH CARE EQUIPMENT & SUPPLIES - 2.2%
Baxter International, Inc. 82,500 2,941,950
Boston Scientific Corp. (a) 40,000 1,306,400
Cytyc Corp. (a) 40,000 912,000
Haemonetics Corp. (a) 50,000 2,074,000
Hospira, Inc. (a) 87,500 2,590,000
National Dentex Corp. (a) 24,478 465,082
Steris Corp. (a) 40,000 990,000
-------------
Health Care Equipment & Supplies Total 11,279,432
See Accompanying Notes to Financial Statements. | 87
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Strategic Investor Fund
SHARES VALUE ($)
------- -------------
COMMON STOCKS - (CONTINUED)
HEALTH CARE - (CONTINUED)
HEALTH CARE PROVIDERS & SERVICES - 2.6%
Accredo Health, Inc. (a) 32,500 1,385,150
Community Health Systems, Inc. (a) 50,000 1,618,500
Health Management Associates,
Inc., Class A 30,000 689,100
Henry Schein, Inc. (a) 22,500 1,627,650
LifePoint Hospitals, Inc. (a) 24,000 961,200
McKesson Corp. 56,000 2,091,040
Omnicare, Inc. 50,000 1,724,500
Quest Diagnostics, Inc. 12,500 1,242,500
Tenet Healthcare Corp. (a) 47,500 518,225
Triad Hospitals, Inc. (a) 23,000 1,004,410
-------------
Health Care Providers & Services Total 12,862,275
PHARMACEUTICALS - 4.7%
Abbott Laboratories 50,000 2,299,500
Andrx Corp. (a) 60,000 1,347,000
Dr. Reddy's Laboratories Ltd., ADR 30,000 528,600
Elan Corp. PLC, ADR (a) 40,000 320,000
Eli Lilly & Co. 45,000 2,520,000
Endo Pharmaceuticals Holdings,
Inc. (a) 50,000 1,126,500
Gedeon Richter Rt. 12,500 1,917,969
Merck & Co., Inc. 40,000 1,268,000
Novartis AG, ADR 30,000 1,499,100
Pfizer, Inc. 63,700 1,674,673
Schering-Plough Corp. 100,000 1,895,000
Shire Pharmaceuticals Group
PLC, ADR 32,500 1,093,625
Taro Pharmaceuticals Industries
Ltd. (a) 50,000 1,411,500
Valeant Pharmaceuticals International 77,500 1,879,375
Watson Pharmaceuticals, Inc. (a) 62,500 1,983,750
Wyeth 20,000 816,400
-------------
Pharmaceuticals Total 23,580,992
-------------
HEALTH CARE TOTAL 53,618,074
INDUSTRIALS - 10.8%
AEROSPACE & DEFENSE - 0.7%
BE Aerospace, Inc. (a) 72,500 872,175
Honeywell International, Inc. 40,000 1,518,800
Raytheon Co. 30,000 1,147,200
-------------
Aerospace & Defense Total 3,538,175
AIR FREIGHT & LOGISTICS - 0.6%
United Parcel Service, Inc., Class B 17,500 1,356,075
Yamato Transport Co., Ltd. 100,000 1,592,526
-------------
Air Freight & Logistics Total 2,948,601
SHARES VALUE ($)
------- -------------
AIRLINES - 0.3%
AMR Corp. (a) 100,000 849,000
Continental Airlines, Inc., Class B (a) 75,000 803,250
-------------
Airlines Total 1,652,250
BUILDING PRODUCTS - 0.2%
Toto Ltd. 100,000 861,535
-------------
Building Products Total 861,535
COMMERCIAL SERVICES & SUPPLIES - 2.3%
Asset Acceptance Capital Corp. (a) 40,000 812,400
Avery Dennison Corp. 52,500 3,186,750
Cendant Corp. 90,000 1,990,800
Central Parking Corp. 30,000 415,800
PHH Corp. (a) 4,500 94,500
R.R. Donnelley & Sons Co. 62,500 2,075,625
Tetra Tech, Inc. (a) 62,500 1,036,250
Tomra Systems ASA 130,000 554,359
Waste Management, Inc. 50,000 1,462,000
-------------
Commercial Services & Supplies Total 11,628,484
CONSTRUCTION & ENGINEERING - 0.5%
Foster Wheeler Ltd. (a) 50,000 897,500
Shaw Group, Inc. (a) 87,500 1,820,000
-------------
Construction & Engineering Total 2,717,500
ELECTRICAL EQUIPMENT - 0.6%
Thomas & Betts Corp. (a) 90,000 2,797,200
-------------
Electrical Equipment Total 2,797,200
INDUSTRIAL CONGLOMERATES - 1.5%
3M Co. 62,500 5,246,250
General Electric Co. 60,000 2,112,000
-------------
Industrial Conglomerates Total 7,358,250
MACHINERY - 3.4%
AGCO Corp. (a) 40,000 778,800
Bucyrus International, Inc., Class A 27,500 1,194,325
Caterpillar, Inc. 32,500 3,089,125
Deere & Co. 10,000 711,100
Eaton Corp. 40,000 2,790,000
Flowserve Corp. (a) 30,000 749,700
Hitachi Construction Machinery
Co., Ltd. 125,000 1,827,363
JLG Industries, Inc. 30,000 642,000
Munters AB 25,000 695,135
Navistar International Corp. (a) 37,500 1,479,750
Pall Corp. 62,500 1,691,875
Timken Co. 52,500 1,485,750
-------------
Machinery Total 17,134,923
MARINE - 0.6%
A.P. Moller - Maersk A/S 140 1,313,556
Finnlines Oyj 80,000 1,488,388
-------------
Marine Total 2,801,944
88 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Strategic Investor Fund
SHARES VALUE ($)
------- -------------
COMMON STOCKS - (CONTINUED)
INDUSTRIALS - (CONTINUED)
ROAD & RAIL - 0.1%
Kansas City Southern (a) 27,500 539,550
-------------
Road & Rail Total 539,550
-------------
INDUSTRIALS TOTAL 53,978,412
INFORMATION TECHNOLOGY - 6.9%
COMMUNICATIONS EQUIPMENT - 1.2%
ADC Telecommunications, Inc. (a) 100,000 230,000
Andrew Corp. (a) 40,000 484,000
Comverse Technology, Inc. (a) 40,000 928,400
Lucent Technologies, Inc. (a) 100,000 307,000
Nokia Oyj, ADR 75,000 1,210,500
Polycom, Inc. (a) 47,500 769,025
Tandberg ASA 130,000 1,450,737
UTStarcom, Inc. (a) 52,500 674,625
-------------
Communications Equipment Total 6,054,287
COMPUTERS & PERIPHERALS - 0.5%
Brocade Communications Systems,
Inc. (a) 75,000 465,000
Hypercom Corp. (a) 75,000 352,500
International Business Machines Corp. 10,000 925,800
Sun Microsystems, Inc. (a) 200,000 844,000
-------------
Computers & Peripherals Total 2,587,300
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.2%
Celestica, Inc. (a) 72,500 932,350
-------------
Electronic Equipment & Instruments Total 932,350
INTERNET SOFTWARE & SERVICES - 0.1%
NIC, Inc. (a) 75,000 381,000
-------------
Internet Software & Services Total 381,000
IT SERVICES - 1.0%
Convergys Corp. (a) 65,000 974,350
DST Systems, Inc. (a) 52,500 2,493,225
First Data Corp. 38,250 1,569,015
-------------
IT Services Total 5,036,590
OFFICE ELECTRONICS - 0.2%
Xerox Corp. (a) 75,000 1,170,000
-------------
Office Electronics Total 1,170,000
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 2.3%
Advanced Micro Devices (a) 67,500 1,177,875
Fairchild Semiconductor
International, Inc. (a) 60,000 991,200
FEI Co. (a) 75,000 1,856,250
LSI Logic Corp. (a) 125,000 797,500
National Semiconductor Corp. 50,000 997,500
Samsung Electronics Co., Ltd., GDR (b) 15,000 3,885,000
SHARES VALUE ($)
------- -------------
Texas Instruments, Inc. 67,500 1,786,725
-------------
Semiconductors & Semiconductor Equipment Total 11,492,050
SOFTWARE - 1.4%
Aspect Communications Corp. (a) 70,000 763,000
Cadence Design Systems, Inc. (a) 50,000 689,000
Check Point Software Technologies
Ltd. (a) 57,500 1,272,475
Computer Associates International, Inc. 33 894
Microsoft Corp. 100,000 2,518,000
Novell, Inc. (a) 100,000 524,000
Parametric Technology Corp. (a) 100,000 575,000
Quest Software, Inc. (a) 40,000 542,800
-------------
Software Total 6,885,169
-------------
INFORMATION TECHNOLOGY TOTAL 34,538,746
MATERIALS - 5.9%
CHEMICALS - 3.1%
Air Products & Chemicals, Inc. 37,500 2,348,250
Calgon Carbon Corp. 100,000 873,000
Dow Chemical Co. 30,000 1,654,500
E.I. du Pont de Nemours & Co. 32,500 1,732,250
International Flavors & Fragrances, Inc. 47,500 1,961,275
Lyondell Chemical Co. 37,500 1,269,375
Mosaic Co. (a) 40,000 658,400
Potash Corp. of Saskatchewan, Inc. 50,000 4,441,000
Zeon Corp. 75,000 588,240
-------------
Chemicals Total 15,526,290
CONSTRUCTION MATERIALS - 0.3%
Martin Marietta Materials, Inc. 27,500 1,586,200
-------------
Construction Materials Total 1,586,200
CONTAINERS & PACKAGING - 0.4%
Sealed Air Corp. (a) 20,000 1,045,400
Smurfit-Stone Container Corp. (a) 50,000 831,500
-------------
Containers & Packaging Total 1,876,900
METALS & MINING - 1.7%
Alpha Natural Resources, Inc. (a) 31,100 808,600
Centerra Gold, Inc. (a) 75,000 1,209,511
Companhia Vale do Rio Doce, ADR 112,500 3,937,500
CONSOL Energy, Inc. 20,000 916,800
Gammon Lake Resources, Inc. (a) 50,000 287,000
WMC Resources Ltd., ADR 50,000 1,205,000
-------------
Metals & Mining Total 8,364,411
PAPER & FOREST PRODUCTS - 0.4%
Bowater, Inc. 20,000 776,600
Votorantim Celulose e Papel SA, ADR 100,000 1,480,000
-------------
Paper & Forest Products Total 2,256,600
-------------
MATERIALS TOTAL 29,610,401
See Accompanying Notes to Financial Statements. | 89
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Strategic Investor Fund
SHARES VALUE ($)
------- -------------
COMMON STOCKS - (CONTINUED)
TELECOMMUNICATION SERVICES - 2.0%
DIVERSIFIED TELECOMMUNICATION SERVICES - 1.4%
BellSouth Corp. 40,000 1,032,000
Cincinnati Bell, Inc. (a) 100,000 440,000
Compania Anonima Nacional
Telefonos de Venezuela, ADR 75,000 1,567,500
SBC Communications, Inc. 42,500 1,022,125
Telekomunikasi Indonesia, ADR 70,000 1,344,700
Verizon Communications, Inc. 47,500 1,708,575
-------------
Diversified Telecommunication Services Total 7,114,900
WIRELESS TELECOMMUNICATION SERVICES - 0.6%
Millicom International Cellular SA (a) 50,000 1,121,500
Nextel Partners, Inc., Class A (a) 50,000 995,500
VimpelCom, ADR (a) 22,500 902,250
-------------
Wireless Telecommunication Services Total 3,019,250
-------------
TELECOMMUNICATION SERVICES TOTAL 10,134,150
UTILITIES - 2.8%
ELECTRIC UTILITIES - 1.6%
Edison International 65,000 2,111,200
Entergy Corp. 20,000 1,382,400
Exelon Corp. 30,000 1,360,800
Northeast Utilities 38,400 716,928
TECO Energy, Inc. 100,000 1,589,000
Westar Energy, Inc. 30,000 689,400
-------------
Electric Utilities Total 7,849,728
GAS UTILITIES - 0.3%
NiSource, Inc. 75,000 1,698,000
-------------
Gas Utilities Total 1,698,000
MULTI-UTILITIES & UNREGULATED POWER - 0.7%
Duke Energy Corp. 57,500 1,551,925
Dynegy, Inc., Class A (a) 100,000 416,000
ONEOK, Inc. 47,500 1,391,750
-------------
Multi-Utilities & Unregulated Power Total 3,359,675
WATER UTILITIES - 0.2%
California Water Service Group 30,000 1,026,000
-------------
Water Utilities Total 1,026,000
-------------
UTILITIES TOTAL 13,933,403
Total Common Stocks
(Cost of $285,263,214) 373,410,526
INVESTMENT COMPANIES - 0.5%
Japan Smaller Capitalization Fund,
Inc. (a) 125,000 1,525,000
Thai Fund, Inc. 107,500 1,186,800
-------------
Total Investment Companies
(Cost of $1,910,310) 2,711,800
PAR ($) VALUE ($)
------- -------------
SHORT-TERM OBLIGATIONS - 24.4%
U.S. GOVERNMENT AGENCY - 2.5%
Federal Home Loan Bank
2.050% 03/01/05 (c) 12,212,000 12,212,000
-------------
REPURCHASE AGREEMENT - 21.9%
Repurchase agreement with State
Street Bank & Trust Co., dated
02/28/05, due 03/01/05 at 2.500%,
collateralized by U.S. Treasury Bills
with various maturities to 08/25/05,
market value of $112,114,200 (repurchase
proceeds $109,919,633) 109,912,000 109,912,000
-------------
Total Short-Term Obligations
(Cost of $122,124,000) 122,124,000
TOTAL INVESTMENTS - 99.4%
(COST OF $409,297,524) (d) 498,246,326
OTHER ASSETS & LIABILITIES, NET - 0.6% 2,880,355
NET ASSETS - 100.0% 501,126,681
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing security.
(b) Security exempt from registration pursuant to Rule 144A under the Securities
Act of 1933. This security may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At February 28,
2005, the value of this security represents 0.8% of net assets.
(c) The rate shown represents the annualized yield at the date of purchase.
(d) Cost for federal income tax purposes is $409,297,524.
At February 28, 2005, the Fund held investments in the following sectors:
% OF
SECTOR NET ASSETS
----------------------------------------------------------------
Financials 11.1%
Industrials 10.8
Health Care 10.7
Energy 9.9
Consumer Discretionary 9.2
Information Technology 6.9
Materials 5.9
Consumer Staples 5.2
Utilities 2.8
Telecommunication Services 2.0
Investment Companies 0.5
Short-Term Obligations 24.4
Other Assets & Liabilities, Net 0.6
------
100.0%
======
ACRONYM NAME
------- ----
ADR American Depositary Receipt
GDR Global Depositary Receipt
REIT Real Estate Investment Trust
90 | See Accompanying Notes to Financial Statements.
INVESTMENT PORTFOLIO ___________________________________________________________
February 28, 2005 (Unaudited) Columbia Balanced Fund
SHARES VALUE ($)
------- -------------
COMMON STOCKS - 58.8%
CONSUMER DISCRETIONARY - 12.0%
AUTOMOBILES - 1.1%
General Motors Corp. 122,820 4,380,989
-------------
Automobiles Total 4,380,989
HOTELS, RESTAURANTS & LEISURE - 0.6%
Darden Restaurants, Inc. 78,450 2,102,460
-------------
Hotels, Restaurants & Leisure Total 2,102,460
INTERNET & CATALOG RETAIL - 0.9%
Amazon.com, Inc. (a) 64,350 2,263,833
eBay, Inc. (a) 28,140 1,205,518
-------------
Internet & Catalog Retail Total 3,469,351
LEISURE EQUIPMENT & PRODUCTS - 0.4%
Hasbro, Inc. 75,050 1,585,056
-------------
Leisure Equipment & Products Total 1,585,056
MEDIA - 6.8%
Clear Channel Communications, Inc. 42,220 1,405,082
Comcast Corp., Class A (a) 139,656 4,545,803
DirecTV Group, Inc. (a) 254,430 3,818,994
Liberty Media Corp., Class A (a) 428,310 4,343,063
Liberty Media International, Inc.,
Class A (a) 30,665 1,325,648
News Corp., Class A 129,080 2,147,891
Time Warner, Inc. (a) 278,460 4,797,866
Viacom, Inc., Class B 103,890 3,625,761
-------------
Media Total 26,010,108
MULTILINE RETAIL - 1.3%
Kohl's Corp. (a) 54,890 2,627,584
May Department Stores Co. 67,390 2,325,629
-------------
Multiline Retail Total 4,953,213
SPECIALTY RETAIL - 0.9%
RadioShack Corp. 118,630 3,506,703
-------------
Specialty Retail Total 3,506,703
-------------
CONSUMER DISCRETIONARY TOTAL 46,007,880
CONSUMER STAPLES - 3.1%
BEVERAGES - 0.3%
Coca-Cola Co. 26,990 1,155,172
-------------
Beverages Total 1,155,172
FOOD & STAPLES RETAILING - 1.0%
Wal-Mart Stores, Inc. 71,270 3,678,245
-------------
Food & Staples Retailing Total 3,678,245
SHARES VALUE ($)
------- -------------
FOOD PRODUCTS - 0.4%
Sara Lee Corp. 71,250 1,596,000
-------------
Food Products Total 1,596,000
HOUSEHOLD PRODUCTS - 0.7%
Colgate-Palmolive Co. 48,360 2,559,211
-------------
Household Products Total 2,559,211
TOBACCO - 0.7%
Altria Group, Inc. 43,575 2,860,699
-------------
Tobacco Total 2,860,699
-------------
CONSUMER STAPLES TOTAL 11,849,327
ENERGY - 2.4%
ENERGY EQUIPMENT & SERVICES - 0.6%
Transocean, Inc. (a) 45,290 2,195,659
-------------
Energy Equipment & Services Total 2,195,659
OIL & GAS - 1.8%
Anadarko Petroleum Corp. 29,840 2,293,503
BP PLC, ADR 22,510 1,461,349
Devon Energy Corp. 68,290 3,195,289
-------------
Oil & Gas Total 6,950,141
-------------
ENERGY TOTAL 9,145,800
FINANCIALS - 9.9%
CAPITAL MARKETS - 1.2%
A.G. Edwards, Inc. 33,370 1,438,581
E*TRADE Financial Corp. (a) 98,200 1,303,114
Morgan Stanley 35,835 2,023,602
-------------
Capital Markets Total 4,765,297
COMMERCIAL BANKS - 0.6%
Fifth Third Bancorp 49,990 2,238,052
-------------
Commercial Banks Total 2,238,052
CONSUMER FINANCE - 0.7%
American Express Co. 46,925 2,540,989
-------------
Consumer Finance Total 2,540,989
DIVERSIFIED FINANCIAL SERVICES - 2.0%
Citigroup, Inc. 84,343 4,024,848
JPMorgan Chase & Co. 99,460 3,635,263
-------------
Diversified Financial Services Total 7,660,111
INSURANCE - 3.9%
Ace Ltd. 74,870 3,328,720
Allstate Corp. 29,680 1,593,222
Berkshire Hathaway, Inc., Class B (a) 1,266 3,816,990
Chubb Corp. 19,205 1,519,308
UnumProvident Corp. 286,660 4,850,287
-------------
Insurance Total 15,108,527
See Accompanying Notes to Financial Statements. | 91
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Balanced Fund
SHARES VALUE ($)
------- -------------
COMMON STOCKS - (CONTINUED)
FINANCIALS - (CONTINUED)
THRIFTS & MORTGAGE FINANCE - 1.5%
MGIC Investment Corp. 92,200 5,784,628
-------------
Thrifts & Mortgage Finance Total 5,784,628
-------------
FINANCIALS TOTAL 38,097,604
HEALTH CARE - 7.1%
BIOTECHNOLOGY - 0.8%
Amgen, Inc. (a) 28,113 1,732,042
MedImmune, Inc. (a) 60,380 1,453,951
-------------
Biotechnology Total 3,185,993
HEALTH CARE PROVIDERS & SERVICES - 2.3%
Cardinal Health, Inc. 58,520 3,426,346
McKesson Corp. 32,460 1,212,056
WebMD Corp. (a) 573,070 4,320,948
-------------
Health Care Providers & Services Total 8,959,350
PHARMACEUTICALS - 4.0%
Barr Pharmaceuticals, Inc. (a) 106,870 5,101,974
Biovail Corp. (a) 156,720 2,513,789
Eli Lilly & Co. 20,455 1,145,480
Endo Pharmaceuticals Holdings,
Inc. (a) 111,320 2,508,039
IVAX Corp. (a) 95,320 1,524,167
Pfizer, Inc. 95,970 2,523,051
-------------
Pharmaceuticals Total 15,316,500
-------------
HEALTH CARE TOTAL 27,461,843
INDUSTRIALS - 3.8%
AIRLINES - 0.8%
Southwest Airlines Co. 229,990 3,185,362
-------------
Airlines Total 3,185,362
COMMERCIAL SERVICES & SUPPLIES - 1.4%
ARAMARK Corp., Class B 50,740 1,422,242
Cintas Corp. 29,740 1,302,017
Waste Management, Inc. 83,345 2,437,008
-------------
Commercial Services & Supplies Total 5,161,267
CONSTRUCTION & ENGINEERING - 0.4%
Jacobs Engineering Group, Inc. (a) 27,900 1,561,842
-------------
Construction & Engineering Total 1,561,842
MACHINERY - 0.7%
Dover Corp. 64,000 2,474,880
-------------
Machinery Total 2,474,880
SHARES VALUE ($)
------- -------------
ROAD & RAIL - 0.5%
Union Pacific Corp. 32,660 2,072,277
-------------
Road & Rail Total 2,072,277
-------------
INDUSTRIALS TOTAL 14,455,628
INFORMATION TECHNOLOGY - 11.9%
COMMUNICATIONS EQUIPMENT - 1.8%
Cisco Systems, Inc. (a) 116,040 2,021,417
Corning, Inc. (a) 103,600 1,188,292
Lucent Technologies, Inc. (a) 292,520 898,036
Nortel Networks Corp. (a) 1,066,090 2,857,121
-------------
Communications Equipment Total 6,964,866
COMPUTERS & PERIPHERALS - 4.0%
Hewlett-Packard Co. 185,280 3,853,824
International Business Machines Corp. 49,480 4,580,859
SanDisk Corp. (a) 195,790 5,262,835
Sun Microsystems, Inc. (a) 404,520 1,707,074
-------------
Computers & Peripherals Total 15,404,592
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.3%
Agilent Technologies, Inc. (a) 52,350 1,256,400
-------------
Electronic Equipment & Instruments Total 1,256,400
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 3.2%
Analog Devices, Inc. 35,220 1,293,279
Broadcom Corp., Class A (a) 42,260 1,362,885
Intel Corp. 199,670 4,788,087
Linear Technology Corp. 98,620 3,852,097
Maxim Integrated Products, Inc. 27,010 1,161,970
-------------
Semiconductors & Semiconductor Equipment Total 12,458,318
SOFTWARE - 2.6%
Fair Isaac Corp. 36,400 1,230,320
Microsoft Corp. 225,900 5,688,162
Oracle Corp. (a) 227,765 2,940,446
-------------
Software Total 9,858,928
-------------
INFORMATION TECHNOLOGY TOTAL 45,943,104
MATERIALS - 5.6%
CHEMICALS - 1.4%
E.I. du Pont de Nemours & Co. 103,960 5,541,068
-------------
Chemicals Total 5,541,068
CONTAINERS & PACKAGING - 2.1%
Sealed Air Corp. (a) 66,600 3,481,182
Smurfit-Stone Container Corp. (a) 270,700 4,501,741
-------------
Containers & Packaging Total 7,982,923
92 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Balanced Fund
SHARES VALUE ($)
------- -------------
COMMON STOCKS - (CONTINUED)
MATERIALS - (CONTINUED)
METALS & MINING - 1.8%
Alcoa, Inc. 104,800 3,366,176
International Steel Group, Inc. (a) 84,870 3,543,322
-------------
Metals & Mining Total 6,909,498
PAPER & FOREST PRODUCTS - 0.3%
Sappi Ltd., ADR 96,680 1,297,446
-------------
Paper & Forest Products Total 1,297,446
-------------
MATERIALS TOTAL 21,730,935
TELECOMMUNICATION SERVICES - 3.0%
DIVERSIFIED TELECOMMUNICATION SERVICES - 2.4%
Brasil Telecom Participacoes SA, ADR 7,010 238,340
CenturyTel, Inc. 43,590 1,466,368
Qwest Communications
International, Inc. (a) 570,000 2,223,000
Telefonos de Mexico SA de CV, ADR 60,840 2,385,536
Verizon Communications, Inc. 77,500 2,787,675
-------------
Diversified Telecommunication
Services Total 9,100,919
WIRELESS TELECOMMUNICATION SERVICES - 0.6%
Nextel Communications, Inc.,
Class A (a) 84,670 2,491,838
-------------
Wireless Telecommunication
Services Total 2,491,838
-------------
TELECOMMUNICATION SERVICES TOTAL 11,592,757
Total Common Stocks
(Cost of $208,194,707) 226,284,878
MORTGAGE-BACKED
OBLIGATIONS - 14.5% PAR ($)
Federal Home Loan Mortgage Corp.
4.000% 09/15/15-10/15/26 15,120,000 14,722,003
4.500% 10/15/18-08/15/28 23,632,638 23,401,241
5.000% 05/01/34 1,933,320 1,909,877
5.500% 12/01/18-07/01/19 2,291,193 2,350,916
6.000% 03/01/17-08/01/17 1,968,653 2,046,454
6.500% 11/15/30-08/01/32 1,049,785 1,082,347
Federal Housing Administration
9.125% 03/25/33 1,537,910 1,553,289
Federal National Mortgage Association
4.500% 11/25/14 630,000 631,006
5.000% 07/01/18-10/01/18 4,557,088 4,594,652
5.842% 07/01/32 (b) 796,702 821,719
6.500% 07/25/30-12/25/30 1,924,456 1,937,691
7.000% 10/15/31-04/15/32 318,651 337,535
PAR ($) VALUE ($)
------- -------------
Government National Mortgage Association
7.000% 05/15/32 303,363 321,336
-------------
Total Mortgage-Backed Obligations
(Cost of $55,706,857) 55,710,066
CORPORATE FIXED-INCOME BONDS & NOTES - 13.8%
BASIC MATERIALS - 0.3%
CHEMICALS - 0.1%
Airgas, Inc.
9.125% 10/01/11 75,000 83,062
EquiStar Chemicals LP
10.125% 09/01/08 25,000 28,813
10.625% 05/01/11 25,000 28,938
Ethyl Corp.
8.875% 05/01/10 50,000 55,000
MacDermid, Inc.
9.125% 07/15/11 50,000 55,312
Nalco Co.
7.750% 11/15/11 25,000 27,063
-------------
Chemicals Total 278,188
FOREST PRODUCTS & PAPER - 0.0%
Boise Cascade LLC
7.125% 10/15/14 (c) 95,000 101,175
-------------
Forest Products & Paper Total 101,175
IRON/STEEL - 0.0%
Russel Metals, Inc.
6.375% 03/01/14 65,000 65,813
-------------
Iron/Steel Total 65,813
MINING - 0.2%
Alcan, Inc.
7.250% 03/15/31 675,000 826,889
-------------
Mining Total 826,889
-------------
BASIC MATERIALS TOTAL 1,272,065
COMMUNICATIONS - 1.9%
MEDIA - 0.7%
Comcast Corp.
7.050% 03/15/33 375,000 436,189
Dex Media West LLC
5.875% 11/15/11 (c) 30,000 29,850
DirecTV Holdings
8.375% 03/15/13 170,000 191,887
EchoStar DBS Corp.
5.750% 10/01/08 90,000 91,350
6.625% 10/01/14 (c) 85,000 87,444
Emmis Operating Co.
6.875% 05/15/12 35,000 35,700
Lamar Media Corp.
7.250% 01/01/13 175,000 189,000
See Accompanying Notes to Financial Statements. | 93
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Balanced Fund
PAR ($) VALUE ($)
------- -------------
CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED)
COMMUNICATIONS - (CONTINUED)
MEDIA - (CONTINUED)
LIN Television Corp.
6.500% 05/15/13 100,000 102,250
Rogers Cable, Inc.
7.875% 05/01/12 100,000 110,750
R.H. Donnelley Finance Corp.
10.875% 12/15/12 (c) 115,000 135,125
TCI Communcations, Inc.
7.250% 08/01/05 335,000 340,159
Time Warner, Inc.
6.625% 05/15/29 775,000 843,905
-------------
Media Total 2,593,609
TELECOMMUNICATIONS - 1.2%
AT&T Wireless Services, Inc.
8.750% 03/01/31 750,000 1,021,342
Deutsche Telekom International
Finance BV
8.500% 06/15/10 525,000 616,765
Nextel Communications, Inc.
6.875% 10/31/13 10,000 10,800
7.375% 08/01/15 175,000 191,625
Rogers Wireless, Inc.
7.500% 03/15/15 15,000 16,425
8.000% 12/15/12 105,000 113,925
Sprint Capital Corp.
6.875% 11/15/28 450,000 498,938
Verizon Global Funding Corp.
7.750% 12/01/30 1,100,000 1,366,255
Vodafone Group PLC
7.750% 02/15/10 750,000 857,752
-------------
Telecommunications Total 4,693,827
-------------
COMMUNICATIONS TOTAL 7,287,436
CONSUMER CYCLICAL - 1.4%
AUTO MANUFACTURERS - 0.7%
DaimlerChrysler NA Holding Corp.
8.500% 01/18/31 475,000 605,478
Ford Motor Credit Co.
7.375% 10/28/09 1,080,000 1,134,011
General Motors Acceptance Corp.
7.750% 01/19/10 850,000 889,006
-------------
Auto Manufacturers Total 2,628,495
ENTERTAINMENT - 0.1%
Cinemark USA, Inc.
9.000% 02/01/13 95,000 106,044
Speedway Motorsports, Inc.
6.750% 06/01/13 96,000 100,680
Warner Music Group
7.375% 04/15/14 (c) 60,000 63,600
-------------
Entertainment Total 270,324
PAR ($) VALUE ($)
------- -------------
HOME BUILDERS - 0.1%
KB Home
8.625% 12/15/08 125,000 141,562
Toll Corp.
8.250% 12/01/11 175,000 192,719
-------------
Home Builders Total 334,281
LEISURE TIME - 0.0%
K2, Inc.
7.375% 07/01/14 60,000 64,920
Royal Caribbean Cruises Ltd.
6.750% 03/15/08 45,000 47,925
6.875% 12/01/13 50,000 54,625
8.750% 02/02/11 55,000 64,488
-------------
Leisure Time Total 231,958
LODGING - 0.2%
Kerzner International
8.875% 08/15/11 75,000 81,750
MGM Mirage, Inc.
6.000% 10/01/09 45,000 46,125
9.750% 06/01/07 30,000 33,225
Park Place Entertainment Corp.
8.875% 09/15/08 15,000 16,987
9.375% 02/15/07 80,000 87,400
Starwood Hotels & Resorts
Worldwide, Inc.
7.375% 05/01/07 150,000 159,375
Station Casinos, Inc.
6.875% 03/01/16 165,000 174,075
Wynn Las Vegas LLC
6.625% 12/01/14 (c) 70,000 70,175
-------------
Lodging Total 669,112
RETAIL - 0.3%
Autonation, Inc.
9.000% 08/01/08 100,000 113,000
Couche-Tard
7.500% 12/15/13 125,000 134,062
Domino's, Inc.
8.250% 07/01/11 30,000 32,438
Group 1 Automotive, Inc.
8.250% 08/15/13 50,000 52,750
Lowe's Companies, Inc.
6.500% 03/15/29 700,000 802,158
Suburban Propane Partners
6.875% 12/15/13 45,000 46,125
-------------
Retail Total 1,180,533
-------------
CONSUMER CYCLICAL TOTAL 5,314,703
94 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Balanced Fund
PAR ($) VALUE ($)
------- -------------
CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED)
CONSUMER NON-CYCLICAL - 1.3%
BEVERAGES - 0.4%
Constellation Brands, Inc.
8.000% 02/15/08 175,000 190,312
Cott Beverages, Inc.
8.000% 12/15/11 175,000 189,438
PepsiAmericas, Inc.
3.875% 09/12/07 1,000,000 993,430
-------------
Beverages Total 1,373,180
COMMERCIAL SERVICES - 0.1%
Corrections Corp. of America
7.500% 05/01/11 125,000 132,969
Iron Mountain, Inc.
7.750% 01/15/15 150,000 153,375
United Rentals NA, Inc.
7.750% 11/15/13 105,000 105,525
-------------
Commercial Services Total 391,869
FOOD - 0.3%
Kroger Co.
6.200% 06/15/12 650,000 701,727
Safeway, Inc.
4.950% 08/16/10 650,000 652,502
-------------
Food Total 1,354,229
HEALTHCARE SERVICES - 0.4%
Extendicare Health Services
6.875% 05/01/14 30,000 30,600
9.500% 07/01/10 10,000 11,075
Fisher Scientific International, Inc.
6.750% 08/15/14 (c) 55,000 58,369
HCA, Inc.
6.950% 05/01/12 125,000 132,139
Province Healthcare Co.
7.500% 06/01/13 125,000 139,844
Triad Hospitals, Inc.
7.000% 05/15/12 100,000 106,500
WellPoint, Inc.
6.800% 08/01/12 925,000 1,036,323
-------------
Healthcare Services Total 1,514,850
HOUSEHOLD PRODUCTS/WARES - 0.0%
Scotts Co.
6.625% 11/15/13 70,000 73,938
-------------
Household Products/Wares Total 73,938
PHARMACEUTICALS - 0.1%
AmerisourceBergen Corp.
8.125% 09/01/08 60,000 66,600
Omnicare, Inc.
8.125% 03/15/11 175,000 186,375
-------------
Pharmaceuticals Total 252,975
-------------
CONSUMER NON-CYCLICAL TOTAL 4,961,041
PAR ($) VALUE ($)
------- -------------
ENERGY - 1.1%
COAL - 0.1%
Arch Western Finance
6.750% 07/01/13 (d) 155,000 160,813
Peabody Energy Corp.
6.875% 03/15/13 170,000 184,450
-------------
Coal Total 345,263
OIL & GAS - 0.7%
Chesapeake Energy Corp.
6.375% 06/15/15 (c) 15,000 15,825
7.500% 09/15/13 145,000 159,862
Devon Energy Corp.
7.950% 04/15/32 550,000 713,520
Marathon Oil Corp.
6.800% 03/15/32 600,000 683,382
Newfield Exploration Co.
6.625% 09/01/14 (c) 130,000 139,913
Occidental Petroleum Corp.
4.250% 03/15/10 775,000 765,638
Plains Exploration & Production Co.
7.125% 06/15/14 90,000 99,000
Pogo Producing Co.
8.250% 04/15/11 20,000 21,400
Pride International, Inc.
7.375% 07/15/14 110,000 121,550
Vintage Petroleum, Inc.
7.875% 05/15/11 100,000 107,250
-------------
Oil & Gas Total 2,827,340
OIL & GAS SERVICES - 0.1%
Grant Prideco, Inc.
9.000% 12/15/09 145,000 159,862
9.625% 12/01/07 15,000 16,688
Hornbeck Offshore Services, Inc.
6.125% 12/01/14 (c) 50,000 50,125
Universal Compression, Inc.
7.250% 05/15/10 95,000 99,750
-------------
Oil & Gas Services Total 326,425
PIPELINES - 0.2%
Kinder Morgan Energy Partners LP
7.300% 08/15/33 600,000 715,338
MarkWest Energy Partners
6.875% 11/01/14 (c) 45,000 46,238
William Companies, Inc.
7.125% 09/01/11 15,000 16,500
8.125% 03/15/12 85,000 99,025
-------------
Pipelines Total 877,101
-------------
ENERGY TOTAL 4,376,129
See Accompanying Notes to Financial Statements. | 95
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Balanced Fund
PAR ($) VALUE ($)
------- -------------
CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED)
FINANCIALS - 4.4%
BANKS - 0.8%
US Bank NA
6.375% 08/01/11 1,500,000 1,651,845
Wachovia Corp.
4.875% 02/15/14 300,000 297,597
Wells Fargo & Co.
5.900% 05/21/06 1,090,000 1,117,980
-------------
Banks Total 3,067,422
DIVERSIFIED FINANCIAL SERVICES - 2.7%
American General Finance Corp.
5.375% 09/01/09 475,000 490,946
Capital One Bank
4.875% 05/15/08 525,000 532,738
CIT Group, Inc.
4.125% 02/21/06 575,000 577,944
Citigroup, Inc.
5.000% 09/15/14 1,450,000 1,451,421
Countrywide Home Loan, Inc.
2.875% 02/15/07 600,000 585,900
Goldman Sachs Group, Inc.
6.345% 02/15/34 745,000 793,127
Household Finance Corp.
6.400% 06/17/08 1,250,000 1,330,337
JPMorgan Chase & Co.
5.750% 01/02/13 1,000,000 1,052,220
Lehman Brothers Holdings, Inc.
4.000% 01/22/08 800,000 795,848
Merrill Lynch & Co., Inc.
4.125% 01/15/09 1,000,000 988,150
Morgan Stanley
4.750% 04/01/14 1,000,000 979,280
SLM Corp.
5.125% 08/27/12 990,000 1,008,355
-------------
Diversified Financial Services Total 10,586,266
INSURANCE - 0.4%
Allstate Financial Global Funding II
2.625% 10/22/06 (c) 1,000,000 980,470
Genworth Financial, Inc.
4.750% 06/15/09 650,000 657,976
-------------
Insurance Total 1,638,446
REAL ESTATE INVESTMENT TRUSTS - 0.3%
Health Care Property Investors, Inc.
6.450% 06/25/12 850,000 924,808
iStar Financial, Inc.
5.125% 04/01/11 25,000 24,979
7.000% 03/15/08 25,000 26,541
-------------
Real Estate Investment Trusts Total 976,328
PAR ($) VALUE ($)
------- -------------
SAVINGS & LOANS - 0.2%
Washington Mutual, Inc.
4.200% 01/15/10 700,000 688,128
-------------
Savings & Loans Total 688,128
-------------
FINANCIALS TOTAL 16,956,590
INDUSTRIALS - 2.4%
AEROSPACE & DEFENSE - 0.8%
Boeing Co.
6.125% 02/15/33 850,000 933,427
L-3 Communications Corp.
6.125% 07/15/13 5,000 5,144
7.625% 06/15/12 170,000 185,300
Lockheed Martin Corp.
8.500% 12/01/29 700,000 965,503
TransDigm, Inc.
8.375% 07/15/11 125,000 133,438
United Technologies Corp.
6.500% 06/01/09 750,000 811,800
-------------
Aerospace & Defense Total 3,034,612
ENVIRONMENTAL CONTROL - 0.2%
Allied Waste North America, Inc.
6.375% 04/15/11 75,000 73,125
Synagro Technologies, Inc.
9.500% 04/01/09 50,000 54,750
Waste Management, Inc.
7.375% 08/01/10 700,000 787,150
-------------
Environmental Control Total 915,025
HAND/MACHINE TOOLS - 0.0%
Kennametal, Inc.
7.200% 06/15/12 85,000 94,337
-------------
Hand/Machine Tools Total 94,337
MACHINERY DIVERSIFIED - 0.1%
Westinghouse Air Brake Technologies Corp.
6.875% 07/31/13 155,000 163,137
-------------
Machinery Diversified Total 163,137
MISCELLANEOUS MANUFACTURING - 0.5%
General Electric Co.
5.000% 02/01/13 2,000,000 2,033,000
-------------
Miscellaneous Manufacturing Total 2,033,000
PACKAGING & CONTAINERS - 0.2%
Ball Corp.
7.750% 08/01/06 175,000 183,094
Jefferson Smurfit Corp.
8.250% 10/01/12 55,000 59,537
Owens-Illinois, Inc.
7.500% 05/15/10 90,000 95,175
96 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Balanced Fund
PAR ($) VALUE ($)
------- -------------
CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED)
INDUSTRIALS - (CONTINUED)
PACKAGING & CONTAINERS - (CONTINUED)
Silgan Holdings, Inc.
6.750% 11/15/13 140,000 144,900
Smurfit-Stone Container Corp.
8.375% 07/01/12 25,000 27,063
Stone Container Finance
7.375% 07/15/14 35,000 36,575
-------------
Packaging & Containers Total 546,344
TRANSPORTATION - 0.6%
Canadian National Railway Co.
7.195% 01/02/16 891,544 1,046,342
Offshore Logistics, Inc.
6.125% 06/15/13 105,000 105,525
Teekay Shipping Corp.
8.875% 07/15/11 200,000 231,500
Union Pacific Corp.
3.875% 02/15/09 1,000,000 978,630
-------------
Transportation Total 2,361,997
-------------
INDUSTRIALS TOTAL 9,148,452
TECHNOLOGY - 0.3%
COMPUTERS - 0.3%
International Business Machines Corp.
5.875% 11/29/32 1,000,000 1,066,650
-------------
Computers Total 1,066,650
SEMICONDUCTORS - 0.0%
Freescale Semiconductor, Inc.
6.875% 07/15/11 135,000 145,125
-------------
Semiconductors Total 145,125
-------------
TECHNOLOGY TOTAL 1,211,775
UTILITIES - 0.7%
ELECTRIC - 0.6%
AES Corp.
7.750% 03/01/14 70,000 77,437
CenterPoint Energy Houston Electric LLC
5.750% 01/15/14 750,000 786,735
Exelon Generation Co. LLC
6.950% 06/15/11 625,000 698,644
Nevada Power Co.
5.875% 01/15/15 (c) 15,000 15,262
6.500% 04/15/12 30,000 31,800
NorthWestern Corp.
5.875% 11/01/14 (c) 5,000 5,088
Virginia Electric & Power Co.
5.375% 02/01/07 700,000 717,549
-------------
Electric Total 2,332,515
PAR ($) VALUE ($)
------- -------------
GAS - 0.1%
Sempra Energy
4.750% 05/15/09 375,000 377,070
-------------
Gas Total 377,070
-------------
UTILITIES TOTAL 2,709,585
Total Corporate Fixed-Income Bonds & Notes
(Cost of $51,086,219) 53,237,776
GOVERNMENT AGENCIES & OBLIGATIONS - 4.3%
FOREIGN GOVERNMENT BONDS - 1.0%
Province of Ontario
3.500% 09/17/07 1,000,000 989,900
Province of Quebec
6.500% 01/17/06 1,100,000 1,128,270
Republic of Italy
2.500% 03/31/06 1,300,000 1,286,935
United Mexican States
7.500% 04/08/33 250,000 277,000
-------------
FOREIGN GOVERNMENT BONDS TOTAL 3,682,105
U.S. GOVERNMENT AGENCIES & OBLIGATIONS - 3.3%
Federal Home Loan Bank
2.250% 09/13/05 1,480,000 1,473,324
3.000% 05/15/06 250,000 248,494
U.S. Treasury Bond
6.250% 08/15/23 570,000 671,710
7.250% 05/15/16 860,000 1,067,441
U.S. Treasury Inflation Index Note
3.625% 01/15/08 4,029,034 4,347,738
U.S. Treasury Note
3.500% 11/15/06 1,415,000 1,414,502
4.250% 11/15/13 3,825,000 3,802,738
-------------
U.S. GOVERNMENT AGENCIES &
OBLIGATIONS TOTAL 13,025,947
Total Government Agencies & Obligations
(Cost of $16,912,315) 16,708,052
See Accompanying Notes to Financial Statements. | 97
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Balanced Fund
PAR ($) VALUE ($)
------- -------------
COLLATERALIZED MORTGAGE OBLIGATIONS - 3.7%
COLLATERALIZED MORTGAGE OBLIGATIONS - 2.5%
Bear Stearns Asset Backed Securities, Inc.
5.000% 01/25/34 1,992,847 1,980,332
Countrywide Alternative Loan Trust
3.050% 03/25/34 (b) 5,019,623 5,015,263
SACO I, Inc.
12.234% 09/25/24 (d) 22,536 21,409
Structured Asset Securities Corp.
5.500% 05/25/33 1,000,149 987,678
5.500% 07/25/33 1,471,723 1,480,767
-------------
COLLATERALIZED MORTGAGE
OBLIGATIONS TOTAL 9,485,449
COMMERCIAL MORTGAGE-BACKED SECURITY - 1.2%
Nationslink Funding Corp.
6.888% 11/10/30 4,380,000 4,632,244
-------------
COMMERCIAL MORTGAGE-BACKED
SECURITY TOTAL 4,632,244
Total Collateralized Mortgage Obligations
(Cost of $13,944,755) 14,117,693
ASSET-BACKED SECURITIES - 1.1%
Cityscape Home Equity Loan Trust
7.410% 05/25/28 812,886 812,748
7.940% 10/25/18 (d) 611,069 610,757
First Alliance Mortgage Trust
7.340% 06/20/27 182,870 183,081
IMC Home Equity Loan Trust
7.310% 11/20/28 1,338,774 1,339,925
7.520% 08/20/28 665,720 665,753
Salomon Brothers Mortgage
Securities VII
7.150% 06/25/28 787,731 781,500
-------------
Total Asset-Backed Securities
(Cost of $4,391,360) 4,393,764
SHORT-TERM OBLIGATIONS - 4.0%
U.S. GOVERNMENT OBLIGATION - 1.4%
U.S. Treasury Bill
2.480% 05/12/05 (e) 5,335,000 5,308,600
-------------
REPURCHASE AGREEMENT - 2.6%
Repurchase agreement with State
Street Bank & Trust Co., dated
02/28/05, due 03/01/05 at 2.500%,
collateralized by a U.S. Treasury
Note maturing 09/30/06, market
value of $10,403,257 (repurchase
proceeds $10,198,708) 10,198,000 10,198,000
-------------
Total Short-Term Obligations
(Cost of $15,506,600) 15,506,600
VALUE ($)
-------------
TOTAL INVESTMENTS - 100.2%
(COST OF $365,742,813) (f) 385,958,829
OTHER ASSETS & LIABILITIES, NET - (0.2)% (789,590)
NET ASSETS - 100.0% 385,169,239
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing security.
(b) Floating rate note. The interest rate shown reflects the rate as of
February 28, 2005.
(c) Security exempt from registration pursuant to Rule 144A under the
Securities Act of 1933. These securities may be resold in transactions
exempt from registration, normally to qualified institutional buyers. At
February 28, 2005, these securities amounted to $1,798,659, which
represents 0.5% of net assets.
(d) Variable rate security. The interest rate shown reflects the rate as of
February 28, 2005.
(e) The rate shown represents the annualized yield at the date of purchase.
(f) Cost for federal income tax purposes is $366,131,956.
At February 28, 2005, the Fund held the following open short futures contracts:
NUMBER OF AGGREGATE EXPIRATION UNREALIZED
TYPE CONTRACTS VALUE FACE VALUE DATE APPRECIATION
--------------------------------------------------------------------------
2-Year U.S.
Treasury
Notes 35 $ 7,258,672 $ 7,264,141 Jun-2005 $ 5,469
----------
On March 7, 2005, cash of $16,000 was pledged as collateral for open
futures contracts and was being held by the broker of the futures
contracts.
At February 28, 2005, the Fund held investments in the following sectors:
% OF
SECTOR NET ASSETS
----------------------------------------------------------------
Common Stocks 58.8%
Mortgage-Backed Obligations 14.5
Corporate Fixed-Income Bonds & Notes 13.8
Government Agencies & Obligations 4.3
Collateralized Mortgage Obligations 3.7
Asset-Backed Securities 1.1
Short-Term Obligations 4.0
Other Assets & Liabilities, Net (0.2)
-----
100.0%
=====
ACRONYM NAME
------- ----
ADR American Depositary Receipt
98 | See Accompanying Notes to Financial Statements.
INVESTMENT PORTFOLIO ___________________________________________________________
February 28, 2005 (Unaudited) Columbia Short Term Bond Fund
PAR ($) VALUE ($)
------- -------------
CORPORATE FIXED-INCOME BONDS & NOTES - 35.7%
COMMUNICATIONS - 4.1%
MEDIA - 1.6%
AOL Time Warner, Inc.
6.125% 04/15/06 2,460,000 2,520,861
Gannett Co., Inc.
4.950% 04/01/05 2,000,000 2,003,360
Jones Intercable, Inc.
7.625% 04/15/08 1,875,000 2,039,831
TCI Communications, Inc.
7.250% 08/01/05 1,125,000 1,142,325
-------------
Media Total 7,706,377
TELECOMMUNICATIONS - 2.5%
AT&T Wireless Services, Inc.
7.500% 05/01/07 1,970,000 2,110,520
Deutsche Telekom
International Finance
8.500% 06/15/10 1,450,000 1,703,446
GTE Southwest, Inc.
6.000% 01/15/06 3,725,000 3,801,064
Sprint Capital Corp.
6.375% 05/01/09 1,250,000 1,335,463
Verizon Global Funding Corp.
7.600% 03/15/07 600,000 642,894
Vodafone Group PLC
7.750% 02/15/10 2,350,000 2,687,624
-------------
Telecommunications Total 12,281,011
-------------
COMMUNICATIONS TOTAL 19,987,388
CONSUMER CYCLICAL - 3.2%
AUTO MANUFACTURERS - 1.8%
DaimlerChrysler NA Holding Corp.
4.750% 01/15/08 1,575,000 1,587,442
Ford Motor Credit Co.
7.375% 10/28/09 4,000,000 4,200,040
General Motors Acceptance Corp.
7.750% 01/19/10 2,900,000 3,033,081
-------------
Auto Manufacturers Total 8,820,563
HOUSEWARES - 0.7%
Newell Rubbermaid, Inc.
2.000% 05/01/05 3,725,000 3,718,072
-------------
Housewares Total 3,718,072
RETAIL - 0.7%
Costco Wholesale Corp.
5.500% 03/15/07 640,000 659,603
Lowe's Companies, Inc.
7.500% 12/15/05 1,675,000 1,723,960
Target Corp.
5.950% 05/15/06 1,000,000 1,025,920
-------------
Retail Total 3,409,483
-------------
CONSUMER CYCLICAL TOTAL 15,948,118
PAR ($) VALUE ($)
------- -------------
CONSUMER NON-CYCLICAL - 4.4%
BEVERAGES - 1.3%
Bottling Group LLC
2.450% 10/16/06 4,300,000 4,211,979
Coca-Cola Enterprises, Inc.
5.750% 11/01/08 2,275,000 2,390,661
-------------
Beverages Total 6,602,640
COSMETICS/PERSONAL CARE - 0.2%
Procter & Gamble Co.
4.750% 06/15/07 725,000 737,999
-------------
Cosmetics/Personal Care Total 737,999
FOOD - 1.5%
General Mills, Inc.
2.625% 10/24/06 2,800,000 2,743,384
Kellogg Co.
6.000% 04/01/06 1,250,000 1,280,500
Kroger Co.
7.650% 04/15/07 1,585,000 1,699,295
Safeway, Inc.
4.950% 08/16/10 1,900,000 1,907,315
-------------
Food Total 7,630,494
HEALTHCARE SERVICES - 0.7%
UnitedHealth Group, Inc.
3.375% 08/15/07 1,415,000 1,388,016
WellPoint, Inc.
4.875% 08/01/05 2,225,000 2,239,262
-------------
Healthcare Services Total 3,627,278
HOUSEHOLD PRODUCTS/WARES - 0.7%
Fortune Brands, Inc.
2.875% 12/01/06 3,275,000 3,219,489
-------------
Household Products/Wares Total 3,219,489
-------------
CONSUMER NON-CYCLICAL TOTAL 21,817,900
ENERGY - 2.1%
OIL & GAS - 2.1%
ChevronTexaco Capital Co.
3.500% 09/17/07 3,350,000 3,312,982
Devon Energy Corp.
2.750% 08/01/06 2,825,000 2,783,529
Marathon Oil Corp.
5.375% 06/01/07 2,725,000 2,801,028
Occidental Petroleum Corp.
7.650% 02/15/06 1,500,000 1,557,195
-------------
Oil & Gas Total 10,454,734
-------------
ENERGY TOTAL 10,454,734
See Accompanying Notes to Financial Statements. | 99
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Short Term Bond Fund
PAR ($) VALUE ($)
------- -------------
CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED)
FINANCIALS - 15.6%
BANKS - 3.5%
Marshall & lsley Corp.
4.375% 08/01/09 2,670,000 2,656,223
U.S. Bancorp
3.125% 03/15/08 5,750,000 5,588,138
Wachovia Corp.
3.500% 08/15/08 3,720,000 3,640,094
Wells Fargo & Co.
5.900% 05/21/06 5,200,000 5,333,484
-------------
Banks Total 17,217,939
COMMERCIAL BANKS - 0.4%
Fifth Third Bank
2.700% 01/30/07 2,075,000 2,028,250
-------------
Commercial Banks Total 2,028,250
DIVERSIFIED FINANCIAL SERVICES - 9.4%
American Express Credit Corp.
3.000% 05/16/08 4,000,000 3,863,040
American General Finance Corp.
3.000% 11/15/06 3,000,000 2,952,660
Bear Stearns Cos., Inc.
6.500% 05/01/06 2,600,000 2,683,980
Capital One Bank
4.875% 05/15/08 1,625,000 1,648,952
CIT Group, Inc.
4.125% 02/21/06 1,700,000 1,708,704
Citigroup, Inc.
6.750% 12/01/05 2,700,000 2,766,555
Countrywide Home Loans, Inc.
2.875% 02/15/07 500,000 488,250
Goldman Sachs Group, Inc.
4.125% 01/15/08 2,560,000 2,562,202
Household Finance Corp.
6.400% 06/17/08 3,225,000 3,432,271
JPMorgan Chase & Co.
3.800% 10/02/09 4,000,000 3,882,840
Lehman Brothers Holdings, Inc.
4.000% 01/22/08 2,500,000 2,487,025
8.750% 03/15/05 500,000 501,030
Merrill Lynch & Co., Inc.
4.125% 01/15/09 2,500,000 2,470,375
Morgan Stanley
3.875% 01/15/09 2,400,000 2,360,496
Pitney Bowes Credit Corp.
5.750% 08/15/08 1,525,000 1,600,899
Security Capital Group, Inc.
7.150% 06/15/07 6,315,000 6,727,180
USA Education, Inc.
5.625% 04/10/07 4,000,000 4,121,880
-------------
Diversified Financial Services Total 46,258,339
PAR ($) VALUE ($)
------- -------------
INSURANCE - 1.0%
Allstate Financial Global Funding II
2.625% 10/22/06 (a) 2,950,000 2,892,386
Genworth Financial, Inc.
4.750% 06/15/09 2,010,000 2,034,663
-------------
Insurance Total 4,927,049
INVESTMENT COMPANIES - 0.3%
Credit Suisse First Boston USA, Inc.
4.625% 01/15/08 1,630,000 1,650,587
-------------
Investment Companies Total 1,650,587
REAL ESTATE INVESTMENT TRUSTS - 0.4%
Health Care Property Investors, Inc.
6.875% 06/08/05 (b) 2,075,000 2,094,339
-------------
Real Estate Investment Trusts Total 2,094,339
SAVINGS & LOANS - 0.6%
Washington Mutual, Inc.
4.200% 01/15/10 2,855,000 2,806,579
-------------
Savings & Loans Total 2,806,579
-------------
FINANCIALS TOTAL 76,983,082
INDUSTRIALS - 4.1%
AEROSPACE & DEFENSE - 0.9%
Boeing Co.
8.100% 11/15/06 1,820,000 1,941,067
United Technologies Corp.
4.875% 11/01/06 2,475,000 2,513,882
-------------
Aerospace & Defense Total 4,454,949
ENVIRONMENTAL CONTROL - 0.5%
USA Waste Services, Inc.
7.125% 10/01/07 2,430,000 2,602,967
-------------
Environmental Control Total 2,602,967
MACHINERY - 1.3%
Caterpillar Financial Services Corp.
3.625% 11/15/07 3,350,000 3,317,069
John Deere Capital Corp.
3.900% 01/15/08 3,000,000 2,981,310
-------------
Machinery Total 6,298,379
MISCELLANEOUS MANUFACTURING - 0.4%
Honeywell International, Inc.
5.125% 11/01/06 1,620,000 1,652,659
-------------
Miscellaneous Manufacturing Total 1,652,659
TRANSPORTATION - 1.0%
Canadian National Railway Co.
6.450% 07/15/06 (b) 910,000 940,330
CSX Corp.
6.460% 06/22/05 2,250,000 2,272,793
100 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Short Term Bond Fund
PAR ($) VALUE ($)
------- -------------
CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED)
INDUSTRIALS - (CONTINUED)
TRANSPORTATION - (CONTINUED)
Union Pacific Corp.
3.875% 02/15/09 1,825,000 1,786,000
-------------
Transportation Total 4,999,123
-------------
INDUSTRIALS TOTAL 20,008,077
TECHNOLOGY - 0.5%
COMPUTERS - 0.5%
International Business Machines Corp.
2.375% 11/01/06 2,700,000 2,641,653
-------------
Computers Total 2,641,653
-------------
TECHNOLOGY TOTAL 2,641,653
UTILITIES - 1.7%
ELECTRIC - 0.9%
Exelon Generation Co.
6.950% 06/15/11 1,850,000 2,067,986
Virginia Electric & Power Co.
5.375% 02/01/07 2,400,000 2,460,168
-------------
Electric Total 4,528,154
GAS - 0.8%
Kinder Morgan Energy Partners LP
8.000% 03/15/05 2,415,000 2,419,057
Sempra Energy
4.750% 05/15/09 1,150,000 1,156,348
-------------
Gas Total 3,575,405
-------------
UTILITIES TOTAL 8,103,559
Total Corporate Fixed-Income Bonds & Notes
(Cost of $177,937,276) 175,944,511
MORTGAGE-BACKED OBLIGATIONS - 20.9%
Federal Home Loan Mortgage Corp.
3.000% 06/15/09 2,891,619 2,885,294
4.000% 05/01/11-10/15/26 17,613,710 17,449,657
4.500% 05/01/19-01/01/20 37,152,476 36,732,906
5.000% 09/01/19-05/01/34 7,095,805 7,118,196
5.500% 05/01/17-07/01/19 6,964,247 7,146,381
6.000% 10/01/06-06/15/31 1,965,352 2,015,688
7.000% 05/01/19-06/15/22 218,988 218,845
7.500% 09/01/15 199,060 210,249
8.500% 09/15/06-07/01/30 195,036 209,400
PAR ($) VALUE ($)
------- -------------
Federal National Mortgage Association
(c) 05/25/23 1,295,000 1,008,205
3.080% 09/25/18 (d) 2,985,807 2,989,033
4.500% 01/01/20 1,216,226 1,202,491
5.000% 04/25/31 6,273,640 6,296,482
5.500% 02/01/18 3,523,903 3,612,341
6.000% 03/01/09-12/18/27 2,300,796 2,369,140
6.500% 03/01/12-07/01/32 120,218 126,151
7.500% 08/01/15 148,191 156,728
8.000% 10/25/06 11,220 11,486
8.000% 05/01/15-07/01/31 427,076 457,053
Government National Mortgage Association
3.500% 12/20/26 8,964,363 8,919,789
5.000% 05/16/27 759,159 764,264
6.500% 09/15/13-11/15/33 900,511 947,472
7.000% 11/15/13-08/15/29 339,623 360,232
-------------
Total Mortgage-Backed Obligations
(Cost of $103,838,878) 103,207,483
COLLATERALIZED MORTGAGE OBLIGATIONS - 17.4%
COLLATERALIZED MORTGAGE OBLIGATIONS - 16.8%
Bank of America Mortgage Securities
5.250% 02/25/18 (e) 1,865,245 1,851,535
Bear Stearns Adjustable Rate
Mortgage Trust
3.515% 06/25/34 (b) 3,583,400 3,646,504
Bear Stearns Alternative Trust
3.000% 09/25/34 (d) 2,912,962 2,913,002
Bear Stearns Asset-Backed Securities, Inc.
7.000% 08/25/36 (a) 682,688 682,688
Countrywide Alternative Loan Trust
3.050% 08/25/18 (d) 9,923,147 9,870,456
Countrywide Home Loans Mortgage
Pass Through Trust
3.050% 03/25/34 (d) 1,465,097 1,463,825
3.150% 03/25/34 (d) 7,244,061 7,252,247
5.000% 01/25/18 875,476 873,637
5.750% 01/25/33 23,131 23,067
First Alliance Mortgage Loan Trust
6.680% 06/25/25 241,034 240,673
GMAC Mortgage
Corporation Loan Trust
3.150% 05/25/18 (d) 4,510,699 4,510,699
Ocwen Residential MBS Corp.
7.000% 10/25/40 (a) 130,643 131,848
PNC Mortgage Securities Corp.
0.010% 04/28/27 (b) 13,303 12,238
Residential Accredit Loans, Inc.
3.250% 07/25/32 (d) 163,416 163,610
3.050% 06/25/34 (d) 9,566,338 9,566,338
Residential Asset Securitization Trust
3.100% 02/25/34 (d) 10,376,799 10,375,761
6.000% 01/25/33 30,261 30,238
See Accompanying Notes to Financial Statements. | 101
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Short Term Bond Fund
PAR ($) VALUE ($)
------- -------------
COLLATERALIZED MORTGAGE OBLIGATIONS - (CONTINUED)
COLLATERALIZED MORTGAGE OBLIGATIONS - (CONTINUED)
Residential Funding Mortgage
Securities I, Inc.
3.050% 07/25/18 (d) 9,222,791 9,193,093
Sears Corp.
8.500% 04/01/17 102,314 102,314
Small Business Administration
2.875% 06/25/22 (d) 529,234 531,532
Structured Asset Securities Corp.
5.500% 05/25/33 500,075 493,839
5.500% 07/25/33 352,758 354,926
5.750% 04/25/33 4,150,933 4,161,423
6.000% 09/25/32 249,311 246,937
Washington Mutual Mortgage
Securities Corp.
3.150% 03/25/18 (d) 4,037,414 4,058,651
3.150% 06/25/18 (d) 3,513,238 3,532,034
Wells Fargo Mortgage-Backed
Securities Trust
5.250% 08/25/33 6,454,355 6,508,442
-------------
COLLATERALIZED MORTGAGE
OBLIGATIONS TOTAL 82,791,557
COMMERICIAL MORTGAGE-BACKED SECURITIES - 0.6%
Nationslink Funding Corp.
6.888% 11/10/30 2,630,000 2,781,462
-------------
COMMERICIAL MORTGAGE-BACKED
SECURITIES TOTAL 2,781,462
Total Collateralized Mortgage Obligations
(Cost of $85,585,852) 85,573,019
ASSET-BACKED SECURITIES - 11.3%
ABFS Mortgage Loan Trust
4.428% 12/15/33 141,017 133,656
Advanta Mortgage Loan Trust
7.750% 10/25/26 68,744 69,670
AmeriCredit Automobile
Receivables Trust
5.370% 06/12/08 469,056 473,691
Amresco Residential Securities
Mortgage Loan Trust
2.890% 07/25/28 (d) 194,349 195,443
3.070% 06/25/27 (d) 49,605 49,614
CIT Equipment Collateral
2.200% 03/20/08 3,050,000 3,003,818
Cityscape Home Equity Loan Trust
7.380% 07/25/28 182,440 182,391
7.410% 05/25/28 91,336 91,320
First Horizon Mortgage Pass-Through
Trust
3.100% 06/25/18 (d) 2,262,896 2,272,354
3.150% 03/25/18 (d) 6,744,933 6,779,535
Harley Davidson Motorcycle Trust
3.090% 06/15/10 1,366,836 1,352,676
PAR ($) VALUE ($)
------- -------------
Honda Auto Receivables Owner Trust
3.000% 05/18/06 497,090 497,190
IMC Home Equity Loan Trust
7.080% 08/20/28 123,841 123,762
7.310% 11/20/28 101,329 101,416
7.500% 04/25/26 770,796 789,520
7.520% 08/20/28 524,587 524,614
Keycorp Student Loan Trust
3.010% 10/25/25 (d) 12,080,000 12,171,929
3.549% 01/27/23 (a)(d) 3,451,101 3,475,880
Morgan Stanley Dean Witter
3.070% 11/25/32 (d) 545,731 553,988
Nissan Auto Receivables Owner Trust
4.600% 09/17/07 1,779,623 1,788,592
Novastar Home Equity Loan
3.020% 02/25/34 (d) 1,572,020 1,576,107
Residential Asset Mortgage Products
2.990% 09/25/33 (d) 2,046,456 2,054,171
Residential Funding Mortgage
Securities 1, Inc.
2.940% 08/25/33 (d) 149,461 149,706
SLM Student Loan Trust
3.269% 01/25/10 (d) 960,523 961,679
3.599% 07/25/11 (d) 6,030,000 6,033,437
3.719% 01/25/13 (d) 8,950,000 9,241,360
University Support Services, Inc.
2.879% 09/20/15 (d) 1,205,423 1,216,320
-------------
Total Asset-Backed Securities
(Cost of $55,622,238) 55,863,839
GOVERNMENT AGENCIES & OBLIGATIONS - 8.4%
FOREIGN GOVERNMENT BONDS - 2.3%
Canadian Government Bond
6.750% 08/28/06 1,000,000 1,046,130
Province of Ontario
3.500% 09/17/07 3,500,000 3,464,650
Province of Quebec
6.500% 01/17/06 1,100,000 1,128,270
Republic of Italy
2.500% 03/31/06 1,950,000 1,930,402
United Mexican States
4.625% 10/08/08 3,600,000 3,618,000
-------------
FOREIGN GOVERNMENT BONDS TOTAL 11,187,452
U.S. GOVERNMENT AGENCIES & OBLIGATIONS - 6.1%
A.I.D. Morocco
3.156% 05/01/23 (d) 462,500 455,563
Federal Home Loan Bank
2.250% 09/13/05 5,300,000 5,276,092
3.000% 05/15/06 (f) 500,000 496,987
U.S. Treasury Bond
6.250% 08/15/23 30,000 35,353
102 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Short Term Bond Fund
PAR ($) VALUE ($)
------- -------------
GOVERNMENT AGENCIES & OBLIGATIONS - (CONTINUED)
U.S. GOVERNMENT AGENCIES & OBLIGATIONS - (CONTINUED)
U.S. Treasury Inflation Index Note
3.625% 01/15/08 14,248,878 15,375,992
U.S. Treasury Note
3.500% 11/15/06 8,740,000 8,736,924
-------------
U.S. GOVERNMENT AGENCIES &
OBLIGATIONS TOTAL 30,376,911
Total Government Agencies & Obligations
(Cost of $41,910,566) 41,564,363
SHORT-TERM OBLIGATIONS - 5.8%
U.S. GOVERNMENT OBLIGATION - 2.1%
U.S. Treasury Bill
2.480% 051/2/05 (g) 10,205,000 10,154,638
-------------
REPURCHASE AGREEMENT - 3.7%
Repurchase agreement with State
Street Bank & Trust Co., dated
02/28/05, due 03/01/05 at 2.500%,
collateralized by a U.S. Treasury
Note maturing 09/30/05, market
value of $18,770,662 (repurchase
proceeds $18,402,278) 18,401,000 18,401,000
-------------
Total Short-Term Obligations
(Cost of $28,555,638) 28,555,638
TOTAL INVESTMENTS - 99.5%
(COST OF $493,450,448) (h) 490,708,853
OTHER ASSETS & LIABILITIES, NET - 0.5% 2,443,125
NET ASSETS - 100.0% 493,151,978
NOTES TO INVESTMENT PORTFOLIO:
(a) Security exempt from registration pursuant to Rule 144A under the
Securities Act of 1933. These securities may be resold in transactions
exempt from registration, normally to qualified institutional buyers. At
February 28, 2005, these securities amounted to $7,182,802, which
represents 1.5% of net assets.
(b) Variable rate security. The interest rate shown reflects the rate at
February 28, 2005.
(c) Zero coupon bond.
(d) Floating rate security. The interest rate shown reflects the rate as of
February 28, 2005.
(e) Investments in affiliates during the period ended February 28, 2005.
Security name:
Bank of America Mortgage Securities (as a
result of a merger effective April 1, 2004,
Bank of America Corp. became the parent
company of the Investment Advisor.)
Par as of 08/31/04: $ 2,252,966
Par purchased: $ --
Par sold: $ 387,721
Par as of 02/28/05: $ 1,865,245
Net realized gain or loss: $ --
Interest income earned: $ 45,118
Value at end of period: $ 1,851,535
(f) Security pledged as collateral for open futures contracts.
(g) The rate shown represents the annualized yield at the date of purchase.
(h) Cost for federal income tax purposes is $493,293,337.
At February 28, 2005, the Fund held the following open short futures
contracts:
NUMBER OF AGGREGATE EXPIRATION UNREALIZED
TYPE CONTRACTS VALUE FACE VALUE DATE APPRECIATION
--------------------------------------------------------------------------
2-Year U.S.
Treasury
Notes 245 $50,810,703 $50,848,984 Jun-2005 $ 38,281
----------
At February 28, 2005, the Fund held investments in the following sectors:
% OF
SECTOR NET ASSETS
----------------------------------------------------------------
Corporate Fixed-Income Bonds & Notes 35.7%
Mortgage-Backed Obligations 20.9
Collateralized Mortgage Obligations 17.4
Asset-Backed Securities 11.3
Government Agencies & Obligations 8.4
Short-Term Obligations 5.8
Other Assets & Liabilities, Net 0.5
-----
100.0%
=====
See Accompanying Notes to Financial Statements. | 103
INVESTMENT PORTFOLIO ___________________________________________________________
February 28, 2005 (Unaudited) Columbia Fixed Income Securities Fund
PAR ($) VALUE ($)
------- -------------
MORTGAGE-BACKED OBLIGATIONS - 38.8%
Federal Home Loan Mortgage Corp.
3.500% 10/01/18 4,771,400 4,474,715
4.000% 09/15/15-10/15/26 23,795,000 22,951,722
4.500% 10/15/18-08/15/28 37,073,163 36,734,385
5.000% 05/01/34 2,508,998 2,478,575
5.500% 12/01/18-09/01/34 9,217,753 9,382,150
6.000% 05/01/17-08/01/34 8,971,314 9,222,269
6.500% 10/15/23-08/01/32 2,598,365 2,686,958
Federal Housing Administration
8.500% 05/01/23 2,088,216 2,109,098
Federal National Mortgage Association
4.500% 11/25/14 2,050,000 2,053,273
5.000% 06/01/18-08/01/18 9,366,213 9,442,801
5.500% 12/01/17 394,744 405,072
5.948% 06/01/32 (a) 71,278 72,501
6.000% 03/01/09 822,526 836,458
6.089% 07/01/32 (a) 903,191 911,911
6.500% 07/25/30-07/01/32 465,568 469,643
Government National Mortgage Association
4.500% 04/16/28 2,090,000 2,082,481
5.000% 05/15/33-02/15/35 2,629,800 2,620,813
6.000% 05/15/33 1,000,600 1,033,967
-------------
Total Mortgage-Backed Obligations
(Cost of $109,858,917) 109,968,792
CORPORATE FIXED-INCOME BONDS & NOTES - 36.5%
BASIC MATERIALS - 0.9%
CHEMICALS - 0.2%
Airgas, Inc.
9.125% 10/01/11 140,000 155,050
EquiStar Chemicals LP
10.125% 09/01/08 25,000 28,813
10.625% 05/01/11 100,000 115,750
Ethyl Corp.
8.875% 05/01/10 50,000 55,000
MacDermid, Inc.
9.125% 07/15/11 115,000 127,219
Nalco Co.
7.750% 11/15/11 75,000 81,187
-------------
Chemicals Total 563,019
FOREST PRODUCTS & PAPER - 0.3%
Boise Cascade LLC
7.125% 10/15/14 (b) 200,000 213,000
International Paper Co.
4.250% 01/15/09 510,000 507,093
-------------
Forest Products & Paper Total 720,093
IRON/STEEL - 0.0%
Russel Metals, Inc.
6.375% 03/01/14 135,000 136,688
Iron/Steel Total 136,688
PAR ($) VALUE ($)
------- -------------
METALS & MINING - 0.4%
Alcan, Inc.
7.250% 03/15/31 1,000,000 1,225,020
-------------
Metals & Mining Total 1,225,020
-------------
BASIC MATERIALS TOTAL 2,644,820
COMMUNICATIONS - 4.8%
MEDIA - 1.7%
Comcast Corp.
7.050% 03/15/33 870,000 1,011,958
Dex Media West LLC
5.875% 11/15/11 (b) 170,000 169,150
DirecTV Holdings
8.375% 03/15/13 245,000 276,544
EchoStar DBS Corp.
5.750% 10/01/08 320,000 324,800
6.625% 10/01/14 (b) 105,000 108,019
Emmis Operating Co.
6.875% 05/15/12 75,000 76,500
Lamar Media Corp.
7.250% 01/01/13 225,000 243,000
LIN Television Corp.
6.500% 05/15/13 200,000 204,500
R.H. Donnelley Finance Corp.
10.875% 12/15/12 75,000 88,125
10.875% 12/15/12 (b) 160,000 188,000
Rogers Cable, Inc.
7.875% 05/01/12 255,000 282,412
TCI Communications, Inc.
7.250% 08/01/05 500,000 507,700
Time Warner, Inc.
6.625% 05/15/29 1,310,000 1,426,472
-------------
Media Total 4,907,180
TELECOMMUNICATIONS - 3.1%
AT&T Wireless Services, Inc.
8.750% 03/01/31 1,200,000 1,634,148
Deutsche Telekom International
Finance BV
8.500% 06/15/10 1,390,000 1,632,958
Nextel Communications, Inc.
6.875% 10/31/13 40,000 43,200
7.375% 08/01/15 350,000 383,250
Rogers Wireless, Inc.
7.500% 03/15/15 30,000 32,850
8.000% 12/15/12 140,000 151,900
Sprint Capital Corp.
6.875% 11/15/28 950,000 1,053,313
Verizon Global Funding Corp.
7.750% 12/01/30 1,700,000 2,111,485
Vodafone Group PLC
7.750% 02/15/10 1,500,000 1,715,505
-------------
Telecommunications Total 8,758,609
-------------
COMMUNICATIONS TOTAL 13,665,789
104 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Fixed Income Securities Fund
PAR ($) VALUE ($)
------- -------------
CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED)
CONSUMER CYCLICAL - 4.4%
AUTO MANUFACTURERS - 1.7%
DaimlerChrysler NA Holding Corp.
8.500% 01/18/31 675,000 860,416
Ford Motor Credit Co.
7.375% 10/28/09 2,375,000 2,493,774
General Motors Acceptance Corp.
7.750% 01/19/10 1,385,000 1,448,557
-------------
Auto Manufacturers Total 4,802,747
ENTERTAINMENT - 0.2%
Cinemark USA, Inc.
9.000% 02/01/13 185,000 206,506
Speedway Motorsports, Inc.
6.750% 06/01/13 190,000 199,263
Warner Music Group
7.375% 04/15/14 (b) 110,000 116,600
-------------
Entertainment Total 522,369
HOME BUILDERS - 0.3%
KB Home
8.625% 12/15/08 350,000 396,375
Toll Corp.
8.250% 12/01/11 350,000 385,437
-------------
Home Builders Total 781,812
LEISURE TIME - 0.2%
K2, Inc.
7.375% 07/01/14 125,000 135,250
Royal Caribbean Cruises Ltd.
6.750% 03/15/08 80,000 85,200
6.875% 12/01/13 100,000 109,250
8.750% 02/02/11 155,000 181,738
-------------
Leisure Time Total 511,438
LODGING - 0.5%
ITT Corp.
6.750% 11/15/05 70,000 71,487
Kerzner International, Ltd.
8.875% 08/15/11 150,000 163,500
MGM Mirage, Inc.
6.000% 10/01/09 285,000 292,125
9.750% 06/01/07 15,000 16,613
Park Place Entertainment Corp.
8.875% 09/15/08 25,000 28,313
9.375% 02/15/07 160,000 174,800
Starwood Hotels & Resorts
Worldwide, Inc.
7.875% 05/01/12 105,000 121,669
Station Casinos, Inc.
6.875% 03/01/16 375,000 395,625
Wynn Las Vegas LLC
6.625% 12/01/14 (b) 145,000 145,362
-------------
Lodging Total 1,409,494
PAR ($) VALUE ($)
------- -------------
RETAIL - 1.5%
AutoNation, Inc.
9.000% 08/01/08 200,000 226,000
Costco Wholesale Corp.
5.500% 03/15/07 1,900,000 1,958,197
Couche-Tard
7.500% 12/15/13 170,000 182,325
Domino's, Inc.
8.250% 07/01/11 50,000 54,063
Group 1 Automotive, Inc.
8.250% 08/15/13 80,000 84,400
Lowe's Companies, Inc.
6.500% 03/15/29 1,510,000 1,730,370
Suburban Propane Partners
6.875% 12/15/13 100,000 102,500
-------------
Retail Total 4,337,855
-------------
CONSUMER CYCLICAL TOTAL 12,365,715
CONSUMER NON-CYCLICAL - 4.3%
BEVERAGES - 0.5%
Anheuser-Busch Companies, Inc.
5.750% 04/01/10 530,000 560,724
Constellation Brands, Inc.
8.000% 02/15/08 350,000 380,625
Cott Beverages, Inc.
8.000% 12/15/11 345,000 373,463
-------------
Beverages Total 1,314,812
COMMERCIAL SERVICES - 0.3%
Corrections Corp. of America
7.500% 05/01/11 275,000 292,531
Iron Mountain, Inc.
8.625% 04/01/13 255,000 269,025
United Rentals NA, Inc.
7.750% 11/15/13 190,000 190,950
-------------
Commercial Services Total 752,506
FOOD - 2.0%
General Mills, Inc.
2.625% 10/24/06 915,000 896,499
Kroger Co.
7.650% 04/15/07 1,450,000 1,554,559
Pepsi Bottling Holdings, Inc.
5.625% 02/17/09 (b) 2,050,000 2,150,778
Safeway, Inc.
4.950% 08/16/10 1,145,000 1,149,408
-------------
Food Total 5,751,244
HEALTHCARE SERVICES - 1.3%
Extendicare Health Services
6.875% 05/01/14 65,000 66,300
9.500% 07/01/10 15,000 16,613
Fisher Scientific International
6.750% 08/15/14 (b) 115,000 122,044
See Accompanying Notes to Financial Statements. | 105
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Fixed Income Securities Fund
PAR ($) VALUE ($)
------- -------------
CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED)
CONSUMER NON-CYCLICAL - (CONTINUED)
HEALTHCARE SERVICES - (CONTINUED)
HCA, Inc.
6.950% 05/01/12 235,000 248,421
Province Healthcare Co.
7.500% 06/01/13 250,000 279,687
Triad Hospitals, Inc.
7.000% 05/15/12 250,000 266,250
7.000% 11/15/13 15,000 15,563
UnitedHealth Group, Inc.
3.375% 08/15/07 1,000,000 980,930
WellPoint, Inc.
6.800% 08/01/12 1,550,000 1,736,542
-------------
Healthcare Services Total 3,732,350
HOUSEHOLD PRODUCTS/WARES - 0.1%
Scotts Co.
6.625% 11/15/13 175,000 184,844
-------------
Household Products/Wares Total 184,844
PHARMACEUTICALS - 0.1%
AmerisourceBergen Corp.
8.125% 09/01/08 115,000 127,650
Omnicare, Inc.
8.125% 03/15/11 290,000 308,850
-------------
Pharmaceuticals Total 436,500
-------------
CONSUMER NON-CYCLICAL TOTAL 12,172,256
ENERGY - 3.1%
COAL - 0.2%
Arch Western Finance
6.750% 07/01/13 210,000 217,875
Peabody Energy Corp.
6.875% 03/15/13 340,000 368,900
-------------
Coal Total 586,775
OIL & GAS - 2.0%
Chesapeake Energy Corp.
6.375% 06/15/15 (b) 65,000 68,575
7.500% 09/15/13 320,000 352,800
Devon Energy Corp.
7.950% 04/15/32 1,150,000 1,491,906
Marathon Oil Corp.
6.800% 03/15/32 1,000,000 1,138,970
Newfield Exploration Co.
6.625% 09/01/14 (b) 240,000 258,300
Occidental Petroleum Corp.
4.250% 03/15/10 1,825,000 1,802,954
Plains Exploration & Production Co.
7.125% 06/15/14 170,000 187,000
Pride International, Inc.
7.375% 07/15/14 205,000 226,525
PAR ($) VALUE ($)
------- -------------
Vintage Petroleum, Inc.
7.875% 05/15/11 150,000 160,875
8.250% 05/01/12 25,000 27,563
-------------
Oil & Gas Total 5,715,468
OIL & GAS SERVICES - 0.3%
Grant Prideco, Inc.
9.000% 12/15/09 360,000 396,900
9.625% 12/01/07 40,000 44,500
Hornbeck Offshore Services, Inc.
6.125% 12/01/14 (b) 100,000 100,250
Universal Compression, Inc.
7.250% 05/15/10 190,000 199,500
-------------
Oil & Gas Services Total 741,150
PIPELINES - 0.6%
Kinder Morgan Energy Partners LP
6.875% 11/01/14 (b) 90,000 92,475
7.300% 08/15/33 1,200,000 1,430,676
Williams Companies, Inc.
7.125% 09/01/11 30,000 33,000
8.125% 03/15/12 195,000 227,175
-------------
Pipelines Total 1,783,326
-------------
ENERGY TOTAL 8,826,719
FINANCIALS - 11.5%
BANKS - 2.6%
US Bank NA
6.375% 08/01/11 2,350,000 2,587,890
Wachovia Corp.
4.875% 02/15/14 2,145,000 2,127,819
Wells Fargo & Co.
5.900% 05/21/06 2,600,000 2,666,742
-------------
Banks Total 7,382,451
DIVERSIFIED FINANCIAL SERVICES - 6.8%
American General Finance Corp.
5.375% 09/01/09 850,000 878,535
Capital One Bank
4.875% 05/15/08 1,025,000 1,040,109
CIT Group, Inc.
4.125% 02/21/06 1,060,000 1,065,427
Citigroup, Inc.
5.000% 09/15/14 2,655,000 2,657,602
Countrywide Home Loans, Inc.
2.875% 02/15/07 1,000,000 976,500
Goldman Sachs Group, Inc.
6.345% 02/15/34 1,550,000 1,650,130
Household Finance Corp.
6.400% 06/17/08 1,850,000 1,968,899
JPMorgan Chase & Co.
5.750% 01/02/13 2,545,000 2,677,900
Lehman Brothers Holdings, Inc.
4.000% 01/22/08 1,000,000 994,810
106 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Fixed Income Securities Fund
PAR ($) VALUE ($)
------- -------------
CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED)
FINANCIALS - (CONTINUED)
DIVERSIFIED FINANCIAL SERVICES - (CONTINUED)
Merrill Lynch & Co., Inc.
4.125% 01/15/09 1,885,000 1,862,663
Morgan Stanley
4.750% 04/01/14 1,530,000 1,498,298
SLM Corp.
5.125% 08/27/12 2,000,000 2,037,080
-------------
Diversified Financial Services Total 19,307,953
INSURANCE - 1.4%
Allstate Financial Global Funding II
2.625% 10/22/06 (b) 2,500,000 2,451,175
Genworth Financial, Inc.
4.750% 06/15/09 1,500,000 1,518,405
-------------
Insurance Total 3,969,580
REAL ESTATE INVESTMENT TRUSTS - 0.7%
Health Care Property Investors, Inc.,
6.450% 06/25/12 1,410,000 1,534,094
iStar Financial, Inc.,
5.125% 04/01/11 175,000 174,849
7.000% 03/15/08 150,000 159,246
-------------
Real Estate Investment Trusts Total 1,868,189
-------------
FINANCIALS TOTAL 32,528,173
INDUSTRIALS - 5.3%
AEROSPACE & DEFENSE - 1.8%
Boeing Co.
6.125% 02/15/33 1,475,000 1,619,771
L-3 Communications Corp.
6.125% 07/15/13 5,000 5,144
7.625% 06/15/12 330,000 359,700
Lockheed Martin Corp.
8.500% 12/01/29 675,000 931,021
TransDigm, Inc.
8.375% 07/15/11 175,000 186,812
United Technologies Corp.
7.125% 11/15/10 1,900,000 2,139,172
-------------
Aerospace & Defense Total 5,241,620
ENVIRONMENTAL CONTROL - 0.6%
Allied Waste North America, Inc.
6.375% 04/15/11 180,000 175,500
Synagro Technologies, Inc.
9.500% 04/01/09 100,000 109,500
Waste Management, Inc.
7.375% 08/01/10 1,330,000 1,495,585
-------------
Environmental Control Total 1,780,585
PAR ($) VALUE ($)
------- -------------
HAND/MACHINE TOOLS - 0.1%
Kennametal, Inc.
7.200% 06/15/12 165,000 183,125
-------------
Hand/Machine Tools Total 183,125
MACHINERY DIVERSIFIED - 0.1%
Manitowoc Co., Inc.
7.125% 11/01/13 10,000 10,800
Westinghouse Air Brake Technologies Corp.
6.875% 07/31/13 200,000 210,500
-------------
Machinery Diversified Total 221,300
MISCELLANEOUS MANUFACTURING - 1.0%
General Electric Co.
5.000% 02/01/13 2,875,000 2,922,438
-------------
Miscellaneous Manufacturing Total 2,922,438
PACKAGING & CONTAINERS - 0.4%
Ball Corp.
7.750% 08/01/06 375,000 392,344
Owens-Brockway Glass Container
6.750% 12/01/14 (b) 25,000 25,625
Owens-Illinois, Inc.
7.500% 05/15/10 185,000 195,637
Silgan Holdings, Inc.
6.750% 11/15/13 285,000 294,975
Smurfit-Stone Container Corp.
9.750% 02/01/11 140,000 152,600
Stone Container Finance
7.375% 07/15/14 95,000 99,275
-------------
Packaging & Containers Total 1,160,456
TRANSPORTATION - 1.3%
Canadian National Railway Co.
7.195% 01/02/16 1,906,913 2,238,010
Offshore Logistics, Inc.
6.125% 06/15/13 205,000 206,025
Teekay Shipping Corp.
8.875% 07/15/11 325,000 376,187
Union Pacific Corp.
3.875% 02/15/09 790,000 773,118
-------------
Transportation Total 3,593,340
-------------
INDUSTRIALS TOTAL 15,102,864
TECHNOLOGY - 0.5%
COMPUTERS - 0.4%
International Business Machines Corp.
5.875% 11/29/32 1,000,000 1,066,650
-------------
Computers Total 1,066,650
See Accompanying Notes to Financial Statements. | 107
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Fixed Income Securities Fund
PAR ($) VALUE ($)
------- -------------
CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED)
TECHNOLOGY - (CONTINUED)
SEMICONDUCTORS - 0.1%
Freescale Semiconductor, Inc.
6.875% 07/15/11 175,000 188,125
-------------
Semiconductors Total 188,125
-------------
TECHNOLOGY TOTAL 1,254,775
UTILITIES - 1.7%
ELECTRIC - 1.4%
AES Corp.
7.750% 03/01/14 110,000 121,687
CenterPoint Energy Houston Electric LLC
5.750% 01/15/14 1,400,000 1,468,572
Exelon Generation Co. LLC
6.950% 06/15/11 1,300,000 1,453,179
Hydro-Quebec
6.970% 03/01/05 1,000,000 1,000,300
Nevada Power Co.
5.875% 01/15/15 (b) 50,000 50,875
6.500% 04/15/12 40,000 42,400
NorthWestern Corp.
5.875% 11/01/14 (b) 10,000 10,175
-------------
Electric Total 4,147,188
GAS - 0.3%
Sempra Energy
4.750% 05/15/09 750,000 754,140
-------------
Gas Total 754,140
-------------
UTILITIES TOTAL 4,901,328
Total Corporate Fixed-Income Bonds & Notes
(Cost of $100,041,478) 103,462,439
GOVERNMENT AGENCIES & OBLIGATIONS - 9.8%
FOREIGN GOVERNMENT BONDS - 2.3%
Province of Quebec
7.000% 01/30/07 1,490,000 1,576,702
Republic of Italy
2.500% 03/31/06 2,750,000 2,722,363
United Mexican States
7.500% 04/08/33 1,890,000 2,094,120
-------------
FOREIGN GOVERNMENT BONDS TOTAL 6,393,185
U.S. GOVERNMENT AGENCIES & OBLIGATIONS - 7.5%
Federal Home Loan Bank
2.250% 09/13/05 3,060,000 3,046,196
3.000% 05/15/06 (c) 350,000 347,891
U.S. Treasury Bond
6.250% 08/15/23 3,000,000 3,535,314
PAR ($) VALUE ($)
------- -------------
U.S. Treasury Inflation Index Note
3.625% 01/15/08 7,763,547 8,377,659
U.S. Treasury Note
3.500% 11/15/06 4,555,000 4,553,397
4.250% 11/15/13 1,500,000 1,491,270
-------------
U.S. GOVERNMENT AGENCIES &
OBLIGATIONS TOTAL 21,351,727
Total Government Agencies & Obligations
(Cost of $27,720,588) 27,744,912
COLLATERALIZED MORTGAGE OBLIGATIONS - 7.0%
COLLATERALIZED MORTGAGE OBLIGATIONS - 5.8%
Bear Stearns Asset-Backed Securities, Inc.
5.000% 01/25/34 4,937,454 4,906,447
Countrywide Alternative Loan Trust
3.050% 03/25/34 (a) 3,604,472 3,601,341
Countrywide Home Loan Mortgage
Pass Through Trust
4.612% 12/19/33 (a) 3,902,860 3,804,860
IMPAC Secured Assets Corp.
6.360% 08/25/32 142,773 142,643
Structured Asset Securities Corp.
5.500% 07/25/33 4,035,860 4,060,661
-------------
COLLATERALIZED MORTGAGE
OBLIGATIONS TOTAL 16,515,952
COMMERCIAL MORTGAGE-BACKED SECURITIES - 1.2%
Nationslink Funding Corp.
6.888% 11/10/30 3,120,000 3,299,681
-------------
COMMERCIAL MORTGAGE-BACKED
SECURITIES TOTAL 3,299,681
Total Collateralized Mortgage Obligations
(Cost of $19,941,682) 19,815,633
ASSET-BACKED SECURITIES - 3.3%
Cityscape Home Equity Loan Trust
7.940% 10/25/18 (a) 415,527 415,315
ContiMortgage Home Equity Trust
7.680% 12/25/29 1,370,707 1,390,418
Fannie Mae Whole Loan
7.800% 06/25/26 463,929 489,271
IMC Home Equity Loan Trust
7.310% 11/20/28 3,611,005 3,614,111
7.500% 04/25/26 1,137,240 1,164,866
7.520% 08/20/28 1,459,258 1,459,331
New Century Home Equity Loan Trust
7.320% 07/25/29 200,104 204,271
Salomon Brothers Mortgage
Securities VII, Inc.
7.150% 06/25/28 490,144 486,266
-------------
Total Asset-Backed Securities
(Cost of $9,147,562) 9,223,849
108 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Fixed Income Securities Fund
PAR ($) VALUE ($)
------- -------------
SHORT-TERM OBLIGATIONS - 4.0%
U.S. GOVERNMENT OBLIGATION - 2.1%
U.S. Treasury Bill
2.480% 05/12/05 (d) 5,880,000 5,850,836
-------------
REPURCHASE AGREEMENT - 1.9%
Repurchase agreement with State Street
Bank & Trust Co., dated 02/28/05,
due 03/01/05 at 2.500%, collateralized
by a U.S. Treasury Note maturing
09/30/06, market value of $5,505,264
(repurchase proceeds $5,397,375) 5,397,000 5,397,000
-------------
Total Short-Term Obligations
(Cost of $11,247,836) 11,247,836
TOTAL INVESTMENTS - 99.4%
(COST OF $277,958,063) (e) 281,463,461
OTHER ASSETS & LIABILITIES, NET - 0.6% 1,591,111
NET ASSETS - 100.0% 283,054,572
NOTES TO INVESTMENT PORTFOLIO:
(a) Floating rate security. The interest rate shown reflects the rate as of
February 28, 2005.
(b) Security exempt from registration pursuant to Rule 144A under the
Securities Act of 1933. These securities may be resold in transactions
exempt from registration, normally to qualified institutional buyers. At
February 28, 2005, these securities amounted to $6,270,403, which
represents 2.2% of net assets.
(c) Security pledged as collateral for open futures contracts.
(d) The rate shown represents the annualized yield at the date of purchase.
(e) Cost for federal income tax purposes is $278,841,750.
At February 28, 2005, the Fund held the following open short futures
contracts:
NUMBER OF AGGREGATE EXPIRATION UNREALIZED
TYPE CONTRACTS VALUE FACE VALUE DATE APPRECIATION
--------------------------------------------------------------------------
2-Year U.S.
Treasury
Notes 65 $13,480,391 $13,490,547 Jun-2005 $10,156
----------
At February 28, 2005, the Fund held investments in the following sectors:
% OF
SECTOR NET ASSETS
----------------------------------------------------------------
Mortgage-Backed Obligations 38.8%
Corporate Fixed-Income Bonds & Notes 36.5
Government Agencies & Obligations 9.8
Collateralized Mortgage Obligations 7.0
Asset-Backed Securities 3.3
Short-Term Obligations 4.0
Other Assets & Liabilities, Net 0.6
-----
100.0%
=====
See Accompanying Notes to Financial Statements. | 109
INVESTMENT PORTFOLIO ___________________________________________________________
February 28, 2005 (Unaudited) Columbia National Municipal Bond Fund
PAR ($) VALUE ($)
------- -------------
MUNICIPAL BONDS - 90.0%
EDUCATION - 2.4%
EDUCATION - 2.4%
IL State Educational Facilities Authority
DePaul University,
Series 2003 C,
Insured: AMBAC
5.000% 09/01/18 250,000 263,945
-------------
Education Total 263,945
-------------
EDUCATION TOTAL 263,945
HEALTH CARE - 11.0%
HOSPITALS - 11.0%
IA Finance Authority
Health Care Facilities Revenue,
Genesis Medical Center,
Insured: MBIA
6.100% 07/01/15 285,000 321,098
IN Board Bank Revenue
Special Program, Hendricks,
Series 2002 D,
Insured: AMBAC
5.375% 04/01/15 250,000 274,758
NH Health & Education
Facilities Authority
Concord Hospital Revenue,
Series 2004,
Insured: FGIC
5.000% 10/01/12 230,000 250,339
OR Benton County Hospital Facilities
Authority Refunding
Samaritan Health Services Project,
4.600% 10/01/09 40,000 41,742
OR Deschutes County Hospital
Facilities Authority
Cascade Health Services, Inc.,
Series 2002,
5.600% 01/01/27 100,000 106,397
WA State Health Care Facilities
Authority Revenue
Grays Harbor Community Hospital,
Series 1996,
Insured: RAD
5.700% 07/01/16 200,000 209,796
-------------
Hospitals Total 1,204,130
-------------
HEALTH CARE TOTAL 1,204,130
PAR ($) VALUE ($)
------- -------------
HOUSING - 0.7%
SINGLE FAMILY - 0.7%
CO Housing Finance Authority
Single Family,
4.875% 04/01/07 10,000 10,015
IA Single Family Mortgage
Series A,
Insured: GNMA
5.800% 07/01/16 60,000 62,744
-------------
Single Family Total 72,759
-------------
HOUSING TOTAL 72,759
OTHER - 16.0%
POOL/BOND BANK - 6.0%
AK Municipal Bond Bank Authority
Series C,
Insured: MBIA
5.500% 09/15/16 100,000 110,853
KS Development Finance Authority
5.000% 04/01/10 250,000 271,778
MS Development Bank, Natchez
Convention Center Project,
Insured: AMBAC
6.500% 07/01/13 230,000 275,662
-------------
Pool/Bond Bank Total 658,293
REFUNDED/ESCROWED (A) - 10.0%
AK Industrial Development & Export
Authority, Snettisham Hydroelectric,
Series 1, AMT,
Pre-refunded Escrowed to Maturity,
Insured: AMBAC
5.500% 01/01/08 5,000 5,314
AK Palmer Valley Hospital Association
Pre-refunded 12/01/09,
Insured: RAD
5.350% 12/01/12 125,000 138,661
IL Madison & St. Clair Counties
School District No. 010, Collinsville
School Building,
Pre-refunded 02/01/11,
Insured: FGIC
5.500% 02/01/12 250,000 280,230
MI State Hospital Finance Authority
Ascension Health Credit,
Series A,
Pre-refunded 11/15/09,
Insured: MBIA
6.000% 11/15/19 100,000 113,464
NY New York City
Pre-refunded 05/15/10,
Series 2000 A,
6.000% 05/15/21 225,000 258,577
110 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia National Municipal Bond Fund
PAR ($) VALUE ($)
------- -------------
MUNICIPAL BONDS - (CONTINUED)
OTHER - (CONTINUED)
REFUNDED/ESCROWED - (CONTINUED)
WA Tacoma Solid Waste Utilities
Pre-refunded Escrowed to Maturity,
Series 1997 B,
Insured: AMBAC
6.000% 12/01/09 15,000 16,981
WI Marshall School District
Pre-refunded 03/01/12,
Series 2002 A,
Insured: FGIC
5.000% 03/01/14 250,000 274,872
-------------
Refunded/Escrowed Total 1,088,099
-------------
OTHER TOTAL 1,746,392
RESOURCE RECOVERY - 3.3%
DISPOSAL - 3.3%
AR Little Rock Waste Disposal Revenue
Series 2002,
Insured: MBIA
5.000% 05/01/16 250,000 266,865
WA Tacoma Solid Waste Utilities
Unrefunded,
Series 1997 B,
Insured: AMBAC
6.000% 12/01/09 85,000 95,491
-------------
Disposal Total 362,356
-------------
RESOURCE RECOVERY TOTAL 362,356
TAX-BACKED - 39.6%
LOCAL APPROPRIATED - 6.5%
IN West Lafayette Industrial
Building Corp. First Mortgage,
Police Station Project,
Insured: FGIC
5.000% 07/15/18 250,000 267,390
MI Sturgis Public School District
School Building & Site,
Insured: QSBLF
5.500% 05/01/14 250,000 277,930
SC Charleston County
Certificates of Participation,
Series 2004,
Insured: MBIA
5.000% 12/01/10 150,000 162,505
-------------
Local Appropriated Total 707,825
PAR ($) VALUE ($)
------- -------------
LOCAL GENERAL OBLIGATIONS - 13.2%
IL Chicago Park District
Aquarium & Museum
Insured: FGIC
5.800% 01/01/18 150,000 165,939
LA Calcasieu Parish School
District No. 31
Public School Improvement,
Series 2000,
Insured: FGIC
5.500% 05/01/16 250,000 275,455
NY New York City
Unrefunded,
Series 2000 A,
6.000% 05/15/21 25,000 27,929
OH Oak Hills Local School District
Insured: MBIA
7.200% 12/01/09 100,000 117,688
SC Charleston County
School District,
Series 2001,
Insured: FSA
5.000% 02/01/18 200,000 214,110
TN Lawrenceburg Public
Building Authority
Electric System Public Works,
Series C,
Insured: FSA
5.500% 07/01/16 295,000 328,813
TX Magnolia Independent
School District
Insured: PSFG
5.250% 08/15/17 280,000 306,258
WA Yakima County
School District No. 119 Selah,
Insured: FGIC
5.000% 12/01/06 10,000 10,407
-------------
Local General Obligations Total 1,446,599
SPECIAL NON-PROPERTY TAX - 8.5%
CA State Economic Recovery
Series 2004 A,
Insured: MBIA
5.000% 07/01/11 200,000 220,024
IL Chicago Motor Fuel Tax Revenue
Series 2003 A,
Insured: AMBAC
5.250% 01/01/17 250,000 274,035
OK Okmulgee County
1st Mortgage,
Insured: MBIA
6.000% 03/01/15 200,000 220,000
TX Laredo Sports Venue Sales Tax
Insured: FGIC
5.750% 03/15/13 200,000 219,754
-------------
Special Non-Property Tax Total 933,813
See Accompanying Notes to Financial Statements. | 111
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia National Municipal Bond Fund
PAR ($) VALUE ($)
------- -------------
MUNICIPAL BONDS - (CONTINUED)
TAX-BACKED - (CONTINUED)
SPECIAL PROPERTY TAX - 1.9%
OR Lebanon Urban Renewal Agency
5.625% 06/01/19 100,000 106,279
OR Redmond Urban Renewal Agency
Downtown Area B,
5.650% 06/01/13 100,000 104,141
-------------
Special Property Tax Total 210,420
STATE APPROPRIATED - 3.5%
KY State Property & Buildings
Commission Revenues
Series 2001,
5.250% 11/01/11 250,000 277,338
WA State Certificates of Participation
Department of General Administration,
5.400% 07/01/13 100,000 106,014
-------------
State Appropriated Total 383,352
STATE GENERAL OBLIGATIONS - 6.0%
NV Colorado River Commission
Hoover Dam Project,
Series 2002,
Insured: FSA
5.375% 10/01/14 250,000 279,857
OR State Veterans Welfare
Series 75,
5.875% 10/01/18 10,000 10,290
PR Public Finance Corp.
Series 2004 A,
Insured: AMBAC
5.250% 08/01/30 (b) 110,000 121,460
WI State GO
Series 2004 2,
Insured: MBIA
5.000% 05/01/12 225,000 246,240
-------------
State General Obligations Total 657,847
-------------
TAX-BACKED TOTAL 4,339,856
TRANSPORTATION - 1.1%
TRANSPORTATION - 1.1%
IL Regional Transportation Authority
Series A,
Insured: AMBAC
6.400% 06/01/12 100,000 116,687
-------------
Transportation Total 116,687
-------------
TRANSPORTATION TOTAL 116,687
PAR ($) VALUE ($)
------- -------------
UTILITIES - 15.9%
INVESTOR OWNED - 1.9%
AK Industrial Development &
Export Authority
Snettisham Hydroelectric,
Series 1, Unrefunded, AMT,
Insured: AMBAC
5.500% 01/01/08 95,000 101,366
OR Port of St. Helens Pollution Control
Portland General Electric Co.,
Series B,
4.800% 06/01/10 105,000 106,867
-------------
Investor Owned Total 208,233
JOINT POWER AUTHORITY - 4.4%
WA State Public Power Supply System
Nuclear Project No. 1 Revenue,
Series 1997 B,
5.125% 07/01/14 300,000 316,143
Nuclear Project No. 2 Refunding,
Series A,
5.000% 07/01/11 50,000 53,671
WY Municipal Power Agency
Power Supply Refunding,
Series 1998,
Insured: MBIA
5.250% 01/01/11 100,000 109,097
-------------
Joint Power Authority Total 478,911
MUNICIPAL ELECTRIC - 7.0%
CA State Department of Water Resource
Power Supply Revenue,
Series 2002,
Insured: AMBAC
5.000% 05/01/16 250,000 269,110
OR Eugene Trojan Nuclear Project
5.900% 09/01/09 20,000 20,406
TN Metropolitan Government Nashville
Series 2002 A,
Insured: AMBAC
5.125% 10/01/13 285,000 312,645
TX Harris County Health Facilities
Development Corp., Teco Project,
Series 1999 B,
Insured: AMBAC
5.700% 02/15/15 150,000 164,992
-------------
Municipal Electric Total 767,153
112 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia National Municipal Bond Fund
PAR ($) VALUE ($)
------- -------------
MUNICIPAL BONDS - (CONTINUED)
UTILITIES - (CONTINUED)
WATER & SEWER - 2.6%
OH State Water Development
Authority Revenue, Fresh Water,
Series 2001 B,
Insured: FSA
5.500% 12/01/18 250,000 291,100
-------------
Water & Sewer Total 291,100
-------------
UTILITIES TOTAL 1,745,397
Total Municipal Bonds
(Cost of $9,391,309) 9,851,522
INVESTMENT COMPANY - 0.0%
Dreyfus Tax-Exempt Cash
Management Fund 1 1
-------------
Total Investment Company
(Cost of $1) 1
SHORT-TERM OBLIGATIONS - 7.3%
VARIABLE RATE DEMAND NOTES (C) - 7.3%
IN Development Finance Authority
Cathedral High Trustees, Inc.,
Series 2001,
1.850% 09/01/26 100,000 100,000
MN Mankato Minnesota Revenue
Bethany Lutheran College,
Series 2000 B,
1.850% 11/01/15 100,000 100,000
MO State Health & Educational
Facilities Authority
Washington University,
Series 1996 C,
1.800% 09/01/30 300,000 300,000
MS Jackson County Pollution
Control Revenue
Chevron U.S.A., Inc. Project,
Series 1992,
1.800% 12/01/16 300,000 300,000
-------------
VARIABLE RATE DEMAND NOTES TOTAL 800,000
Total Short-Term Obligations
(Cost of $800,000) 800,000
VALUE ($)
-------------
TOTAL INVESTMENTS - 97.3%
(COST OF $10,191,310) (d) 10,651,523
OTHER ASSETS & LIABILITIES, NET - 2.7% 300,809
NET ASSETS - 100.0% 10,952,332
NOTES TO INVESTMENT PORTFOLIO:
(a) The Fund has been informed that each issuer has placed direct obligations
of the U.S. government in an irrevocable trust, solely for the payment of
principal and interest.
(b) Variable rate security. The interest rate shown reflects the rate as of
February 28, 2005.
(c) Variable rate demand notes. These securities are payable upon demand and
are secured by letters of credit or other credit support agreements from
banks. The interest rates change periodically and the interest rates shown
reflect the rates as of February 28, 2005.
(d) Cost for federal income tax purposes is $10,190,178.
At February 28, 2005, the Fund held investments in the following sectors:
% OF
HOLDINGS BY REVENUE SOURCE NET ASSETS
----------------------------------------------------------------
Tax-Backed 39.6%
Other 16.0
Utilities 15.9
Health Care 11.0
Resource Recovery 3.3
Education 2.4
Transportation 1.1
Housing 0.7
Investment Company 0.0
Short-Term Obligations 7.3
Other Assets & Liabilities, Net 2.7
-----
100.0%
=====
ACRONYM NAME
------- ----
AMBAC Ambac Assurance Corp.
AMT Alternative Minimum Tax
FGIC Financial Guaranty Insurance Co.
FSA Financial Security Assurance, Inc.
GNMA Government National Mortgage Association
GO General Obligation
MBIA MBIA Insurance Corp.
PSFG Permanent School Fund Guaranteed
QSBLF Qualified School Bond Loan Fund
RAD Radian Assset Assurance, Inc.
See Accompanying Notes to Financial Statements. | 113
INVESTMENT PORTFOLIO ___________________________________________________________
February 28, 2005 (Unaudited) Columbia Oregon Municipal Bond Fund
PAR ($) VALUE ($)
------- -------------
MUNICIPAL BONDS - 98.1%
EDUCATION - 6.4%
EDUCATION - 5.1%
OR Multnomah County
Educational Facilities Authority,
University of Portland Project:
5.700% 04/01/15 1,000,000 1,060,080
6.000% 04/01/20 1,000,000 1,086,470
6.000% 04/01/25 500,000 530,035
University of Portland Project, Refunding,
Insured: AMBAC
5.000% 04/01/11 1,150,000 1,222,967
5.750% 04/01/10 2,000,000 2,159,720
OR State Health Sciences University
Series A:
Insured: MBIA
(a) 07/01/09 1,530,000 1,331,299
(a) 07/01/12 1,315,000 996,757
(a) 07/01/14 2,550,000 1,750,167
(a) 07/01/15 4,325,000 2,815,272
(a) 07/01/21 12,515,000 5,923,475
OR State Health, Housing,
Educational & Cultural Facilities Authority,
Linfield College Project,
Series A:
4.650% 10/01/09 555,000 578,488
5.500% 10/01/18 1,000,000 1,040,960
Reed College Project,
Series A:
5.300% 07/01/11 500,000 526,195
Insured: MBIA
5.100% 07/01/10 900,000 967,311
-------------
Education Total 21,989,196
PREP SCHOOL - 1.3%
OR State Facilities Authority Revenue
French American International
School Project,
Series A,
6.250% 04/01/27 5,270,000 5,395,900
-------------
Prep School Total 5,395,900
-------------
EDUCATION TOTAL 27,385,096
PAR ($) VALUE ($)
------- -------------
HEALTH CARE - 12.3%
CONTINUING CARE RETIREMENT - 0.7%
OR Albany Hospital Facility Authority
Mennonite Home Albany,
Series PJ-A:
4.750% 10/01/11 660,000 687,878
5.000% 10/01/12 680,000 715,530
OR Clackamas County Hospital
Facility Authority
Willamette View, Inc. Project,
Series A,
6.850% 11/01/15 1,480,000 1,603,240
-------------
Continuing Care Retirement Total 3,006,648
HOSPITALS - 11.4%
OR Benton County Hospital
Facilities Authority
Samaritan Health Services
Project, Refunding:
4.400% 10/01/07 220,000 226,455
4.800% 10/01/11 245,000 254,908
5.200% 10/01/17 2,255,000 2,333,677
OR Clackamas County Hospital
Facility Authority
Legacy Health System:
4.600% 05/01/10 885,000 934,542
5.000% 02/15/16 1,010,000 1,055,571
5.500% 02/15/13 5,450,000 5,880,877
5.500% 02/15/14 2,385,000 2,571,340
5.750% 05/01/12 2,000,000 2,237,960
Legacy Health System
Insured: MBIA
5.500% 02/15/13 495,000 542,941
Legacy Health System, Refunding:
5.250% 05/01/21 4,890,000 5,195,625
5.750% 05/01/16 1,500,000 1,652,295
Williamette Falls Hospital Project,
5.750% 04/01/14 705,000 737,254
OR Deschutes County Hospital
Facilities Authority
Cascade Health Services, Inc.:
5.500% 01/01/22 2,000,000 2,129,840
5.600% 01/01/27 5,550,000 5,905,033
5.600% 01/01/32 2,000,000 2,119,500
OR Medford Hospital Facilities Authority
Asante Health System,
Series A:
Insured: MBIA
5.250% 08/15/10 1,500,000 1,617,075
5.250% 08/15/11 800,000 859,704
OR Multnomah County Hospital
Facilities Authority Revenue
Providence Health System,
5.250% 10/01/16 2,970,000 3,260,733
114 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Oregon Municipal Bond Fund
PAR ($) VALUE ($)
------- -------------
MUNICIPAL BONDS - (CONTINUED)
HEALTH CARE - (CONTINUED)
HOSPITALS - (CONTINUED)
OR Ontario Catholic Health Holy
Rosary Medical Center
Insured: MBIA
5.500% 11/15/12 1,500,000 1,560,450
OR Salem Hospital Facility Authority
5.000% 08/15/18 2,000,000 2,069,420
5.250% 08/15/14 4,860,000 5,173,373
OR Umatilla County Hospital
Facility Authority
Catholic Health Initiatives,
Series A,
5.750% 12/01/20 285,000 315,019
-------------
Hospitals Total 48,633,592
NURSING HOMES - 0.2%
OR Clackamas County Hospital
Facility Authority Odd Fellows Home,
Series A, Refunding,
5.875% 09/15/21 705,000 658,294
-------------
Nursing Homes Total 658,294
-------------
HEALTH CARE TOTAL 52,298,534
HOUSING - 7.8%
ASSISTED LIVING/SENIOR - 0.7%
OR Clackamas County Hospital
Facility Authority
Robison Jewish Home Project,
6.250% 10/01/21 1,650,000 1,781,126
OR State Health, Housing, Educational
& Cultural Facilities Authority
St. Anthony's Village Housing,
Series A, AMT,
7.250% 06/01/28 1,360,000 1,367,548
-------------
Assisted Living/Senior Total 3,148,674
MULTI-FAMILY - 4.4%
OR Clackamas County Housing Authority
Multi-Family Housing,
Easton Ridge,
Series A,
5.800% 12/01/16 2,255,000 2,294,530
OR State Housing & Community
Services Department
Multiple Purpose,
Series A:
Insured: FSA
3.550% 01/01/13 1,000,000 997,930
3.550% 07/01/13 1,000,000 994,960
3.650% 01/01/14 1,000,000 996,220
3.650% 07/01/14 1,000,000 994,480
PAR ($) VALUE ($)
------- -------------
OR State Housing & Community Services,
Department of Housing,
Finance Assisted,
Insured: FHA
6.800% 07/01/13 7,250,000 7,263,485
OR Washington County
Housing Authority
Affordable Housing,
Series A,
5.750% 07/01/23 1,000,000 1,024,510
Affordable Housing Pool,
Series A:
6.000% 07/01/20 2,000,000 2,050,240
6.000% 07/01/23 1,000,000 1,032,250
PR Housing Finance Corp.
Multi-Family Mortgage Portfolio A-1,
Insured: FHA
7.500% 04/01/22 715,000 717,438
-------------
Multi-Family Total 18,366,043
SINGLE FAMILY - 2.7%
OR State Housing & Community
Services, Department of Mortgage
Revenue, Single Family Program:
Series A,
4.850% 07/01/10 150,000 157,731
Series D,
6.700% 07/01/13 495,000 495,891
Series E:
5.375% 07/01/21 3,230,000 3,394,149
Insured: FHA
5.700% 07/01/12 700,000 712,215
5.800% 07/01/14 620,000 631,228
6.000% 07/01/20 1,735,000 1,768,676
Series J,
5.150% 07/01/24 2,445,000 2,525,196
Series M, AMT,
5.800% 07/01/12 210,000 220,559
Series Q:
4.700% 07/01/15 690,000 721,029
4.900% 07/01/17 675,000 707,771
OR State Housing Finance Revenue
Insured: FHA
5.800% 07/01/09 180,000 181,257
-------------
Single Family Total 11,515,702
-------------
HOUSING TOTAL 33,030,419
OTHER - 17.5%
OTHER - 0.9%
OR State Health, Housing,
Educational & Cultural
Facilities Authority
Goodwill Industries Lane County,
Series A,
6.650% 11/15/22 (b) 3,750,000 3,745,425
-------------
Other Total 3,745,425
See Accompanying Notes to Financial Statements. | 115
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Oregon Municipal Bond Fund
PAR ($) VALUE ($)
------- -------------
MUNICIPAL BONDS - (CONTINUED)
OTHER - (CONTINUED)
POOL/BOND BANK - 0.3%
OR State Economic Community
Development Department
Series A,
Insured: MBIA
5.375% 01/01/11 1,105,000 1,200,671
-------------
Pool/Bond Bank Total 1,200,671
REFUNDED/ESCROWED (C) - 16.3%
OR Board of Higher Education
Series A,
Pre-refunded 08/01/11:
5.250% 08/01/14 1,225,000 1,351,812
5.250% 08/01/16 4,550,000 5,021,016
OR Clackamas County Hospital
Facility Authority
Kaiser Permanente,
Series A,
Pre-refunded Escrowed to Maturity,
5.375% 04/01/14 7,135,000 7,816,963
OR Clackamas County
School District No. 086,
Pre-refunded 06/15/10,
6.000% 06/15/16 2,350,000 2,678,836
School District No. 12,
North Clackamas,
Pre-refunded 06/01/09:
Insured: FGIC
5.250% 06/01/11 1,000,000 1,091,780
5.250% 06/01/15 2,750,000 3,002,395
School District No. 62C,
Pre-refunded 06/15/10,
5.375% 06/15/17 1,250,000 1,387,038
OR Josephine County School
District No. 7
Grants Pass,
Pre-refunded 06/01/07,
Insured: FGIC
5.700% 06/01/13 2,000,000 2,134,460
OR Multnomah County
School District No. 7, Reynolds,
Pre-refunded 06/15/11:
5.625% 06/15/14 2,670,000 3,021,692
5.625% 06/15/17 1,000,000 1,131,720
Series A,
Pre-refunded 04/01/10,
5.500% 04/01/19 2,395,000 2,666,138
PAR ($) VALUE ($)
------- -------------
OR Multnomah-Clackamas Counties
Centennial School District No. 28-302,
Pre-refunded 06/15/11:
Insured: FGIC
5.375% 06/15/16 2,055,000 2,296,689
5.375% 06/15/17 2,280,000 2,548,151
5.375% 06/15/18 2,490,000 2,782,849
OR North Clackamas Parks &
Recreation District Facilities
Pre-refunded Escrowed to Maturity,
5.700% 04/01/13 2,920,000 3,262,136
OR Northern Oregon Corrections
Pre-refunded 09/15/07:
Insured: AMBAC
5.250% 09/15/12 1,000,000 1,063,950
5.300% 09/15/13 1,000,000 1,065,180
OR Portland Arena Gas Tax
Pre-refunded 06/01/06:
Insured: FSA
(a) 06/01/16 1,100,000 574,079
(a) 06/01/17 2,320,000 1,133,018
OR Salem Water & Sewer
Pre-refunded 06/01/10,
Insured: FSA
5.300% 06/01/15 1,500,000 1,658,370
OR Salem-Keizer School District No. 24J
Pre-refunded 06/01/09:
5.000% 06/01/15 1,000,000 1,081,840
5.000% 06/01/16 1,380,000 1,492,939
OR State Board of Higher Education
Lottery Education Project,
Series A,
Pre-refunded 04/01/09:
Insured: FSA
5.000% 04/01/14 2,705,000 2,964,626
5.250% 04/01/13 1,600,000 1,756,960
OR State City Sewer
Pre-refunded 10/01/05,
6.500% 10/01/07 390,000 402,386
OR State Department of
Administrative Services
Certificates of Participation,
Series A,
Pre-refunded 06/01/07,
Insured: AMBAC
5.300% 05/01/08 750,000 799,500
OR State Department of Transportation
Highway User Tax,
Series A,
Pre-refunded 11/15/12,
5.500% 11/15/16 2,500,000 2,844,375
OR Umatilla County Hospital
Facility Authority
Catholic Health Initiatives,
Series A,
Pre-refunded Escrowed to Maturity:
5.750% 12/01/20 245,000 276,441
6.000% 12/01/30 4,825,000 5,502,044
116 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Oregon Municipal Bond Fund
PAR ($) VALUE ($)
------- -------------
MUNICIPAL BONDS - (CONTINUED)
OTHER - (CONTINUED)
REFUNDED/ESCROWED (C) - (CONTINUED)
OR Washington County
Beaverton:
Pre-refunded 08/01/08,
5.250% 08/01/10 1,150,000 1,242,552
Pre-refunded 06/01/09,
Insured: FGIC
5.100% 06/01/12 500,000 542,910
School District No. 088J,
Sherwood,
Pre-refunded 06/01/05,
Insured: FSA
6.100% 06/01/12 185,000 186,881
School District No. 48J,
Unified Sewer Agency
Pre-refunded 10/01/06,
Insured: FGIC
5.500% 10/01/16 1,250,000 1,319,938
VI Public Finance Authority
Series A,
Pre-refunded Escrowed to Maturity,
7.300% 10/01/18 1,185,000 1,540,784
-------------
Refunded/Escrowed Total 69,642,448
-------------
OTHER TOTAL 74,588,544
OTHER REVENUE - 2.2%
RECREATION - 2.2%
OR State Board of Higher Education
Lottery Education Project,
Series A:
Insured: FSA
5.000% 04/01/14 2,830,000 3,109,902
5.250% 04/01/11 4,000,000 4,360,040
Series B,
Insured: FSA
5.250% 04/01/15 1,315,000 1,427,538
OR State Health, Housing,
Educational & Cultural
Facilities Authority,
Aquarium:
4.750% 10/01/08 (b)(d) 1,550,000 325,500
4.900% 10/01/09 (b)(d) 670,000 140,780
-------------
Recreation Total 9,363,760
-------------
OTHER REVENUE TOTAL 9,363,760
PAR ($) VALUE ($)
------- -------------
TAX-BACKED - 41.4%
LOCAL APPROPRIATED - 0.6%
OR Deschutes & Jefferson County
School District No. 02J
Series B,
Insured: FGIC
(a) 06/15/22 2,335,000 1,034,895
OR Deschutes County
Certificates of Participation,
Series A,
5.050% 06/01/17 420,000 428,833
OR Multnomah County
Certificates of Participation,
4.550% 08/01/10 1,000,000 1,051,850
-------------
Local Appropriated Total 2,515,578
LOCAL GENERAL OBLIGATIONS - 27.0%
OR Aurora
5.600% 06/01/24 1,205,000 1,272,757
OR Bend Municipal Airport Project
Series B, AMT,
5.375% 06/01/13 150,000 158,058
OR Benton & Linn Counties
School District No. 509J,
Corvallis,
Insured: FSA
5.000% 06/01/17 2,665,000 2,866,234
OR Canyonville South Umpqua
Rural Fire District
5.400% 07/01/31 610,000 648,180
OR Clackamas & Washington Counties
School District No. 003JT,
Insured: FGIC
(a) 06/15/17 4,000,000 2,293,120
OR Clackamas Community College
Insured: FGIC
5.250% 06/15/15 1,500,000 1,643,565
OR Clackamas County
Lake Oswego Series:
5.375% 06/01/15 2,450,000 2,710,386
5.375% 06/01/16 1,295,000 1,431,869
5.375% 06/01/17 2,535,000 2,799,324
School District No. 108,
5.375% 06/15/15 1,055,000 1,167,758
OR Columbia County
School District No. 502,
Defered Interest
Insured: FGIC
(a) 06/01/13 1,685,000 1,219,873
(a) 06/01/14 1,025,000 705,856
OR Coos Bay
4.900% 09/01/07 1,505,000 1,546,222
See Accompanying Notes to Financial Statements. | 117
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Oregon Municipal Bond Fund
PAR ($) VALUE ($)
------- -------------
MUNICIPAL BONDS - (CONTINUED)
TAX-BACKED - (CONTINUED)
LOCAL GENERAL OBLIGATIONS - (CONTINUED)
OR Coos County
School District No. 13,
North Bend,
Insured: FSA
5.500% 06/15/15 1,765,000 1,977,224
OR Crook County
School District,
Insured: FSA
5.000% 02/01/14 2,860,000 3,105,674
OR Deschutes County
School District No. 1,
Series A,
Insured: FSA
5.500% 06/15/18 1,000,000 1,110,310
OR Eugene Public Safety Facilities
5.500% 06/01/10 850,000 881,501
5.625% 06/01/13 1,295,000 1,344,327
OR Jackson County
School District No. 4,
Phoenix-Talent,
Insured: FSA
5.500% 06/15/16 1,000,000 1,113,890
School District No. 6,
Central Point,
6.000% 06/15/09 1,090,000 1,218,391
School District No. 9,
Eagle Point,
5.625% 06/15/15 1,920,000 2,153,299
OR Jefferson County
School District No. 509J,
Madras School District,
Insured: FGIC
5.250% 06/15/18 1,075,000 1,178,490
OR Josephine County
School District No. 7,
Grants Pass,
4.000% 06/15/11 2,000,000 2,072,600
Unit School District,
Three Rivers:
Insured: FGIC
5.000% 12/15/15 1,000,000 1,102,710
5.000% 12/15/16 1,000,000 1,104,160
PAR ($) VALUE ($)
------- -------------
OR Lane County
School District No. 19,
Springfield, Refunding:
Insured: FGIC
6.000% 10/15/12 1,740,000 2,027,361
6.000% 10/15/14 1,310,000 1,553,110
School District No. 4J Eugene,
Refunding,
5.000% 07/01/12 1,000,000 1,098,370
School District No. 4J:
Eugene, Refunding,
Insured: FGIC
5.250% 07/01/13 1,000,000 1,119,460
OR Lincoln County
School District,
Insured: FGIC
5.600% 06/15/10 3,480,000 3,832,489
OR Linn Benton Community College
Insured: FGIC
(a) 06/15/13 1,000,000 715,190
(a) 06/15/14 1,000,000 680,150
OR Linn County
Community School District No. 9,
Lebanon:
Insured: FGIC
5.250% 06/15/15 710,000 786,368
5.550% 06/15/21 2,000,000 2,242,420
OR Metro Washington Park Zoo
Series A,
5.300% 01/15/11 1,000,000 1,046,300
OR Metro
5.250% 09/01/14 3,130,000 3,473,517
OR Multnomah County
School District No. 40,
Insured: FSA
5.000% 12/01/14 1,790,000 1,944,101
OR Multnomah-Clackamas Counties
School District Number 10JT,
Series A,
Insured: FSA
5.250% 06/15/12 1,000,000 1,114,170
OR Portland Community
College District
Series A:
5.375% 06/01/14 1,925,000 2,137,250
5.375% 06/01/16 2,705,000 2,990,891
5.375% 06/01/17 2,540,000 2,804,846
OR Portland Limited Tax
Series A,
4.900% 04/01/12 1,430,000 1,488,987
Series B:
(a) 06/01/12 1,750,000 1,329,423
(a) 06/01/13 1,500,000 1,084,170
(a) 06/01/16 3,500,000 2,155,090
(a) 06/01/18 4,000,000 2,211,560
(a) 06/01/19 4,000,000 2,097,240
(a) 06/01/20 4,000,000 1,986,560
118 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Oregon Municipal Bond Fund
PAR ($) VALUE ($)
------- -------------
MUNICIPAL BONDS - (CONTINUED)
TAX-BACKED - (CONTINUED)
LOCAL GENERAL OBLIGATIONS - (CONTINUED)
OR Rouge Community College District
Refunding:
Insured: MBIA
5.000% 06/15/15 1,015,000 1,119,941
5.000% 06/15/16 1,050,000 1,152,732
5.000% 06/15/17 1,255,000 1,371,088
OR Salem-Keizer
School District No. 24J,
Insured: FSA
5.000% 06/15/18 2,000,000 2,158,740
OR Tualatin Hills Park &
Recreation District
Insured: FGIC
5.750% 03/01/14 990,000 1,146,984
OR Washington & Clackamas Counties
Deferred Interest,
Series A,
(a) 06/01/10 1,520,000 1,250,778
School District No. 23J,
Tigard:
(a) 06/15/18 2,700,000 1,488,267
Insured: MBIA
5.375% 06/15/17 1,500,000 1,658,805
OR Washington County
5.500% 06/01/16 2,785,000 3,100,429
School District No. 15,
Forest Grove:
Insured: FSA
5.375% 06/15/13 2,070,000 2,304,117
5.375% 06/15/15 2,515,000 2,783,803
School District No. 48J,
Beaverton:
5.125% 01/01/14 2,000,000 2,177,980
5.125% 01/01/17 1,820,000 1,963,962
5.125% 01/01/18 2,260,000 2,436,303
Criminal Justice Facilities,
Refunding,
5.000% 12/01/10 1,400,000 1,478,974
OR Washington Multnomah &
Yamhill Counties
School District No. 1J:
5.250% 06/01/14 500,000 540,330
Insured: MBIA
5.000% 11/01/13 1,100,000 1,213,212
5.000% 06/01/13 1,500,000 1,631,910
OR Yamhill County
School District No. 029J,
Insured: MBIA
5.250% 06/15/16 2,535,000 2,785,838
School District No. 40,
Insured: FGIC
6.000% 06/01/09 500,000 559,795
-------------
Local General Obligations Total 115,068,789
PAR ($) VALUE ($)
------- -------------
SPECIAL NON-PROPERTY TAX - 0.4%
OR Portland Gas Tax
Series A,
Insured: FSA
5.800% 06/01/16 1,640,000 1,703,025
-------------
Special Non-Property Tax Total 1,703,025
SPECIAL PROPERTY TAX - 6.8%
OR Hood River Urban Renewal Agency
6.250% 12/15/11 1,120,000 1,186,058
OR Lebanon Urban Renewal Agency
5.625% 06/01/19 1,000,000 1,062,790
5.750% 06/01/15 1,120,000 1,170,310
6.000% 06/01/20 1,580,000 1,688,736
OR Medford Urban Renewal
5.875% 09/01/10 500,000 516,800
OR Portland Airport Way, Urban
Renewal & Redevelopment
Convention Center,
Series A,
Insured: AMBAC
5.750% 06/15/17 1,500,000 1,684,425
Series A,
Insured: AMBAC
5.750% 06/15/18 2,050,000 2,298,767
OR Portland Limited Tax
Series A,
3.400% 06/01/13 1,675,000 1,669,657
OR Portland River District, Urban
Renewal & Redevelopment
Series A:
Insured: AMBAC
5.000% 06/15/17 1,500,000 1,613,715
5.000% 06/15/18 3,070,000 3,295,399
5.000% 06/15/20 2,000,000 2,134,760
OR Portland Urban Renewal
& Redevelopment
South Park Blocks,
Series A:
Insured: AMBAC
5.750% 06/15/17 2,065,000 2,318,892
5.750% 06/15/19 2,580,000 2,893,083
OR Redmond Urban Renewal
Agency Revenue
Refunding South Airport
Industrial Area A,
5.700% 06/01/19 650,000 665,275
OR Redmond Urban Renewal Agency
Downtown Area B:
5.650% 06/01/13 720,000 749,815
5.850% 06/01/19 785,000 816,730
OR Seaside Urban Renewal Agency
Greater Seaside Urban Renewal,
5.250% 06/01/15 1,000,000 1,041,140
See Accompanying Notes to Financial Statements. | 119
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Oregon Municipal Bond Fund
PAR ($) VALUE ($)
------- -------------
MUNICIPAL BONDS - (CONTINUED)
TAX-BACKED - (CONTINUED)
SPECIAL PROPERTY TAX - (CONTINUED)
OR Veneta Urban Renewal Agency
5.375% 02/15/16 700,000 745,318
5.625% 02/15/21 1,100,000 1,163,547
OR Wilsonville Limited
Tax Improvement
5.000% 12/01/10 250,000 251,358
-------------
Special Property Tax Total 28,966,575
STATE APPROPRIATED - 3.7%
OR State Department of Administrative Services
Certificates of Participation, Refunding,
Series A:
Insured: AMBAC
4.500% 05/01/12 1,020,000 1,066,869
5.000% 05/01/13 4,240,000 4,580,981
5.000% 05/01/14 1,000,000 1,080,420
Series B,
Insured: MBIA
5.250% 05/01/10 840,000 921,782
Series C:
Insured: MBIA
5.250% 11/01/15 1,000,000 1,094,860
5.250% 11/01/17 5,000,000 5,467,700
Series E,
Insured: FSA
5.000% 11/01/13 1,470,000 1,598,949
-------------
State Appropriated Total 15,811,561
STATE GENERAL OBLIGATIONS - 2.9%
OR Elderly & Disabled Housing Refunding,
Series B:
6.250% 08/01/13 55,000 55,195
4.950% 08/01/20 985,000 1,024,617
OR State Board of Higher Education
Deferred Interest,
Series A,
(a) 08/01/17 1,050,000 607,708
Series A:
5.000% 08/01/12 2,075,000 2,274,490
(a) 08/01/14 490,000 334,464
5.250% 08/01/14 255,000 281,288
5.250% 08/01/16 780,000 855,091
OR State
9.200% 10/01/08 385,000 466,709
Series A,
5.250% 10/15/15 1,735,000 1,920,801
OR Veterans Welfare
8.000% 07/01/08 580,000 673,931
5.850% 10/01/15 360,000 370,516
Series 80A,
5.700% 10/01/32 2,175,000 2,202,796
PAR ($) VALUE ($)
------- -------------
PR Commonwealth of Puerto Rico
Series A,
5.000% 07/01/30 1,000,000 1,066,300
-------------
State General Obligations Total 12,133,906
-------------
TAX-BACKED TOTAL 176,199,434
TRANSPORTATION - 2.5%
AIRPORTS - 0.6%
OR Eugene Airport
Refunding, AMT:
5.650% 05/01/06 325,000 334,627
5.650% 05/01/07 555,000 582,250
5.700% 05/01/08 515,000 548,851
OR Port of Portland International Airport
Series 12B, Refunding,
Insured: FGIC
5.250% 07/01/12 1,000,000 1,076,810
-------------
Airports Total 2,542,538
PORTS - 0.6%
OR Port Morrow
6.700% 06/01/20 2,000,000 2,010,560
OR Port of St. Helens
5.600% 08/01/14 315,000 323,354
5.750% 08/01/19 425,000 437,291
-------------
Ports Total 2,771,205
TRANSPORTATION - 1.3%
OR Tri-County Metropolitan
Transportation District
Series 1,
5.400% 06/01/19 4,200,000 4,431,924
Series A,
5.000% 09/01/15 1,000,000 1,087,220
-------------
Transportation Total 5,519,144
-------------
TRANSPORTATION TOTAL 10,832,887
UTILITIES - 8.0%
INVESTOR OWNED - 2.1%
OR Port of St. Helens
Pollution Control
Portland General Electric Co.:
Series A,
4.800% 04/01/10 5,195,000 5,286,796
Series B,
4.800% 06/01/10 3,500,000 3,562,230
-------------
Investor Owned Total 8,849,026
120 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Oregon Municipal Bond Fund
PAR ($) VALUE ($)
------- -------------
MUNICIPAL BONDS - (CONTINUED)
UTILITIES - (CONTINUED)
MUNICIPAL ELECTRIC - 3.3%
OR Deschutes Valley Water District
5.875% 09/01/05 810,000 823,146
OR Emerald Peoples Utility District
Insured: FGIC
7.350% 11/01/10 2,160,000 2,610,338
7.350% 11/01/11 2,000,000 2,459,900
7.350% 11/01/12 2,490,000 3,113,048
7.350% 11/01/13 2,675,000 3,401,209
Series A,
Insured: FSA
5.250% 11/01/20 605,000 661,319
OR Eugene Electric Utilities System,
Series B, Refunding,
Insured: FSA
5.250% 08/01/13 1,040,000 1,147,214
-------------
Municipal Electric Total 14,216,174
WATER & SEWER - 2.6%
OR Myrtle Point Water
6.000% 12/01/20 510,000 550,713
OR Portland Sewer System Revenue
Series A, Refunding,
Insured: FGIC
5.000% 06/01/12 4,835,000 5,067,080
OR Powell Valley Water District
6.000% 02/01/15 620,000 660,120
OR Reedsport Water
7.000% 10/01/14 520,000 521,362
OR Sheridan Water Revenue
6.200% 05/01/15 625,000 674,531
6.450% 05/01/20 520,000 563,405
Refunding,
5.350% 04/01/18 300,000 312,225
OR Washington County
Clean Water Services Sewer, Series Lien,
Insured: MBIA
5.000% 10/01/13 2,310,000 2,547,099
-------------
Water & Sewer Total 10,896,535
-------------
UTILITIES TOTAL 33,961,735
Total Municipal Bonds
(Cost of $397,133,116) 417,660,409
SHARES VALUE ($)
------- -------------
INVESTMENT COMPANIES - 0.2%
Dreyfus Tax-Exempt Cash
Management Fund 205,974 205,974
Money Market Obligations Trust 505,542 505,542
-------------
Total Investment Companies
(Cost of $711,516) 711,516
SHORT-TERM OBLIGATIONS - 0.6% PAR ($)
VARIABLE RATE DEMAND NOTES (E) - 0.6%
FL Alachua Health Facilities Authority
Oak Hammock University,
Series 2002 A,
1.750% 10/01/32 300,000 300,000
IL Health Facilities Authority Revenue
OSF Healthcare Systems,
Series 2002:
1.770% 11/15/27 300,000 300,000
1.800% 11/15/27 400,000 400,000
IN Health Facility Financing
Authority Revenue
Golden Years Homestead,
Series 2002 A,
1.870% 06/01/25 800,000 800,000
MN Minneapolis
Convention Center,
Series 2000,
1.720% 12/01/18 200,000 200,000
MN State Higher Education
Facilities Authority
St. Olaf College,
Series 2002 5-M1,
LOC: Harris Trust & Savings Bank,
1.750% 10/01/32 200,000 200,000
NY New York City Municipal
Water Finance Authority
Water & Sewer Systems Revenue,
Series 1994 G,
Insured: FGIC
1.750% 06/15/24 500,000 500,000
-------------
VARIABLE RATE DEMAND NOTES TOTAL 2,700,000
Total Short-Term Obligations
(Cost of $2,700,000) 2,700,000
See Accompanying Notes to Financial Statements. | 121
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Oregon Municipal Bond Fund
VALUE ($)
-------------
TOTAL INVESTMENTS - 98.9%
(COST OF $400,544,632) (F) 421,071,925
OTHER ASSETS & LIABILITIES, NET - 1.1% 4,643,268
NET ASSETS - 100.0% 425,715,193
NOTES TO INVESTMENT PORTFOLIO:
(a) Zero coupon bond.
(b) Denotes a restricted security, which is subject to restrictions on resale
under federal securities laws. At February 28, 2005, the value of these
securities amounted to $4,211,705, which represents 1.0% of net assets.
ACQUISITION ACQUISITION
SECURITY DATE COST
------- ------------- -------------
Oregon State Health, Housing,
Educational & Cultural Facilities Authority,
Authority/Aquarium:
4.750% 10/01/08 09/21/98 $ 1,539,906
4.900% 10/01/09 09/21/98 667,383
Oregon State Health, Housing,
Educational & Cultural Facilities Authority,
Goodwill Industries Lane County,
Series A,
6.650% 11/15/22 06/17/98 3,855,000
-------------
$ 6,062,289
=============
(c) The Fund has been informed that each issuer has placed direct obligations of
the U.S. Government in an irrevocable trust, solely for the payment of
principal and interest.
(d) The issuer is in default of certain debt covenants. Income is not being
accrued.
(e) Variable rate demand notes. These securities are payable upon demand and are
secured by letters of credit or other credit support agreements from banks.
The interest rates change periodically and the interest rates shown reflect
the rates as of February 28, 2005.
(f) Cost for federal income tax purposes is $400,400,148.
At February 28, 2005, the Fund held investments in the following sectors:
% OF
HOLDINGS BY REVENUE SOURCE NET ASSETS
- ----------------------------------------------------------------------
Tax-Backed 41.4%
Other 17.5
Health Care 12.3
Utilities 8.0
Housing 7.8
Education 6.4
Transportation 2.5
Other Revenue 2.2
Investment Companies 0.2
Short-Term Obligations 0.6
Other Assets & Liabilities, Net 1.1
-----
100.0%
=====
ACRONYM NAME
------- ----
AMBAC Ambac Assurance Corp.
AMT Alternative Minimum Tax
FGIC Financial Guaranty Insurance Co.
FHA Federal Housing Administration
FSA Financial Security Assurance, Inc.
MBIA MBIA Insurance Corp.
122 | See Accompanying Notes to Financial Statements.
INVESTMENT PORTFOLIO ___________________________________________________________
February 28, 2005 (Unaudited) Columbia High Yield Fund
PAR ($) VALUE ($)
------- -------------
CORPORATE FIXED-INCOME BONDS & NOTES - 92.3%
BASIC MATERIALS - 5.1%
CHEMICALS - 3.6%
CHEMICAL-SPECIALTY - 1.8%
Ethyl Corp.
8.875% 05/01/10 8,400,000 9,240,000
MacDermid, Inc.
9.125% 07/15/11 9,520,000 10,531,500
Nalco Co.
7.750% 11/15/11 10,220,000 11,063,150
PQ Corp.
7.500% 02/15/13 (a) 675,000 696,937
-------------
31,531,587
CHEMICALS-DIVERSIFIED - 0.8%
Equistar Chemicals LP
10.125% 09/01/08 7,370,000 8,493,925
10.625% 05/01/11 4,805,000 5,561,788
-------------
14,055,713
INDUSTRIAL-GASES - 1.0%
Airgas, Inc.
9.125% 10/01/11 16,358,000 18,116,485
-------------
18,116,485
-------------
Chemicals Total 63,703,785
FOREST PRODUCTS & PAPER - 1.0%
PAPER & RELATED PRODUCTS - 1.0%
Boise Cascade LLC
7.125% 10/15/14 (a) 16,875,000 17,971,875
-------------
17,971,875
-------------
Forest Products & Paper Total 17,971,875
IRON/STEEL - 0.5%
STEEL-PRODUCERS - 0.5%
Russel Metals, Inc.
6.375% 03/01/14 8,780,000 8,889,750
-------------
8,889,750
-------------
Iron/Steel Total 8,889,750
-------------
BASIC MATERIALS TOTAL 90,565,410
COMMUNICATIONS - 14.8%
ADVERTISING - 1.9%
ADVERTISING SALES - 1.9%
Lamar Media Corp.
7.250% 01/01/13 31,203,000 33,699,240
-------------
33,699,240
-------------
Advertising Total 33,699,240
PAR ($) VALUE ($)
------- -------------
MEDIA - 9.6%
CABLE TV - 4.9%
DirecTV Holdings
8.375% 03/15/13 24,895,000 28,100,231
EchoStar DBS Corp.
5.750% 10/01/08 22,125,000 22,456,875
6.625% 10/01/14 (a) 13,170,000 13,548,637
Rogers Cable, Inc.
6.250% 06/15/13 9,790,000 9,985,800
7.875% 05/01/12 11,225,000 12,431,688
-------------
86,523,231
MULTIMEDIA - 0.3%
Emmis Operating Co.
6.875% 05/15/12 5,345,000 5,451,900
-------------
5,451,900
PUBLISHING-PERIODICALS - 3.5%
Dex Media West LLC
5.875% 11/15/11 (a) 26,043,000 25,912,785
R.H. Donnelley Finance Corp.
8.875% 12/15/10 (a) 1,320,000 1,458,600
10.875% 12/15/12 (a) 21,445,000 25,197,875
10.875% 12/15/12 8,150,000 9,576,250
-------------
62,145,510
TELEVISION - 0.9%
LIN Television Corp.
6.500% 05/15/13 14,365,000 14,688,213
-------------
14,688,213
-------------
Media Total 168,808,854
TELECOMMUNICATIONS - 3.3%
CELLULAR TELECOMMUNICATIONS - 3.3%
Nextel Communications, Inc.
5.950% 03/15/14 2,845,000 2,951,687
6.875% 10/31/13 3,390,000 3,661,200
7.375% 08/01/15 26,475,000 28,990,125
Rogers Wireless, Inc.
7.500% 03/15/15 7,865,000 8,612,175
8.000% 12/15/12 13,670,000 14,831,950
-------------
59,047,137
-------------
Telecommunications Total 59,047,137
-------------
COMMUNICATIONS TOTAL 261,555,231
See Accompanying Notes to Financial Statements. | 123
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia High Yield Fund
PAR ($) VALUE ($)
------- -------------
CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED)
CONSUMER CYCLICAL - 20.5%
AUTO PARTS & EQUIPMENT - 0.3%
AUTO/TRUCK PARTS & EQUIPMENT-ORIGINAL - 0.3%
Accuride Corp.
8.500% 02/01/15 (a) 5,850,000 6,047,437
-------------
6,047,437
-------------
Auto Parts & Equipment Total 6,047,437
ENTERTAINMENT - 3.2%
MUSIC - 0.8%
Warner Music Group
7.375% 04/15/14 (a) 13,055,000 13,838,300
-------------
13,838,300
RACETRACKS - 1.0%
Speedway Motorsports, Inc.
6.750% 06/01/13 16,983,000 17,810,921
-------------
17,810,921
THEATERS - 1.4%
Cinemark USA, Inc.
9.000% 02/01/13 21,740,000 24,267,275
-------------
24,267,275
-------------
Entertainment Total 55,916,496
HOME BUILDERS - 2.8%
BUILDING RESIDENTIAL/COMMERCIAL - 2.8%
KB Home
5.875% 01/15/15 7,085,000 7,208,987
7.750% 02/01/10 5,150,000 5,574,875
8.625% 12/15/08 6,325,000 7,163,062
9.500% 02/15/11 5,765,000 6,298,263
Toll Brothers, Inc.
8.250% 02/01/11 3,200,000 3,452,000
Toll Corp.
8.000% 05/01/09 5,765,000 5,988,394
8.250% 12/01/11 12,770,000 14,062,963
-------------
49,748,544
-------------
Home Builders Total 49,748,544
LEISURE TIME - 2.5%
CRUISE LINES - 2.0%
Royal Caribbean Cruises Ltd.
6.750% 03/15/08 5,325,000 5,671,125
6.875% 12/01/13 6,275,000 6,855,438
8.750% 02/02/11 18,890,000 22,148,525
-------------
34,675,088
PAR ($) VALUE ($)
------- -------------
LEISURE & RECREATIONAL PRODUCTS - 0.5%
K2, Inc.
7.375% 07/01/14 8,380,000 9,067,160
-------------
9,067,160
-------------
Leisure Time Total 43,742,248
LODGING - 8.3%
CASINO HOTELS - 7.2%
Kerzner International, Ltd.
8.875% 08/15/11 7,825,000 8,529,250
MGM Mirage, Inc.
6.000% 10/01/09 30,230,000 30,985,750
9.750% 06/01/07 3,045,000 3,372,337
Park Place Entertainment Corp.
7.875% 03/15/10 12,600,000 14,253,750
8.875% 09/15/08 5,150,000 5,832,375
9.375% 02/15/07 13,475,000 14,721,438
Station Casinos, Inc.
6.500% 02/01/14 20,305,000 21,269,488
6.875% 03/01/16 13,540,000 14,284,700
Wynn Las Vegas LLC
6.625% 12/01/14 (a) 13,830,000 13,864,575
-------------
127,113,663
HOTELS & MOTELS - 1.1%
ITT Corp.
6.750% 11/15/05 800,000 817,000
Starwood Hotels & Resorts
Worldwide, Inc.
7.375% 05/01/07 5,300,000 5,631,250
7.875% 05/01/12 11,180,000 12,954,825
-------------
19,403,075
-------------
Lodging Total 146,516,738
RETAIL - 3.4%
CONVENIENCE STORES - 1.0%
Couche-Tard
7.500% 12/15/13 16,480,000 17,674,800
-------------
17,674,800
RETAIL-AUTOMOBILE - 1.4%
Autonation, Inc.
9.000% 08/01/08 14,330,000 16,192,900
Group 1 Automotive, Inc.
8.250% 08/15/13 8,045,000 8,487,475
-------------
24,680,375
RETAIL-PROPANE DISTRIBUTORS - 0.5%
Suburban Propane Partners
6.875% 12/15/13 9,675,000 9,916,875
-------------
9,916,875
124 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia High Yield Fund
PAR ($) VALUE ($)
------- -------------
CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED)
CONSUMER CYCLICAL - (CONTINUED)
RETAIL - (CONTINUED)
RETAIL-RESTAURANTS - 0.5%
Domino's, Inc.
8.250% 07/01/11 7,805,000 8,439,156
-------------
8,439,156
-------------
Retail Total 60,711,206
-------------
CONSUMER CYCLICAL TOTAL 362,682,669
CONSUMER NON-CYCLICAL - 17.5%
BEVERAGES - 3.4%
BEVERAGES-NON-ALCOHOLIC - 1.8%
Cott Beverages, Inc.
8.000% 12/15/11 29,250,000 31,663,125
-------------
31,663,125
BEVERAGES-WINE/SPIRITS - 1.6%
Constellation Brands, Inc.
8.000% 02/15/08 3,850,000 4,186,875
8.125% 01/15/12 17,585,000 19,167,650
8.625% 08/01/06 5,100,000 5,380,500
-------------
28,735,025
-------------
Beverages Total 60,398,150
COMMERCIAL SERVICES - 4.3%
COMMERCIAL SERVICES - 1.4%
Iron Mountain, Inc.
7.750% 01/15/15 7,450,000 7,617,625
8.625% 04/01/13 17,140,000 18,082,700
-------------
25,700,325
PRIVATE CORRECTIONS - 1.8%
Corrections Corp. of America
7.500% 05/01/11 29,400,000 31,274,250
9.875% 05/01/09 275,000 303,875
-------------
31,578,125
RENTAL AUTO/EQUIPMENT - 1.1%
United Rentals, Inc.
7.000% 02/15/14 12,000,000 11,625,000
7.750% 11/15/13 7,005,000 7,040,025
-------------
18,665,025
-------------
Commercial Services Total 75,943,475
PAR ($) VALUE ($)
------- -------------
HEALTH CARE SERVICES - 6.3%
MEDICAL PRODUCTS - 0.9%
Fisher Scientific
International, Inc.
6.750% 08/15/14 (a) 14,360,000 15,239,550
-------------
15,239,550
MEDICAL-HMO - 0.7%
Coventry Health Care, Inc.
5.875% 01/15/12 (a) 12,825,000 13,113,563
-------------
13,113,563
MEDICAL-HOSPITALS - 3.8%
HCA, Inc.
6.950% 05/01/12 20,555,000 21,728,896
Province Healthcare Co.
7.500% 06/01/13 12,800,000 14,320,000
Triad Hospitals, Inc.
7.000% 05/15/12 24,453,000 26,042,445
7.000% 11/15/13 4,360,000 4,523,500
-------------
66,614,841
MEDICAL-NURSING HOMES - 0.4%
Extendicare Health Services, Inc.
6.875% 05/01/14 5,825,000 5,941,500
9.500% 07/01/10 1,280,000 1,417,600
-------------
7,359,100
MEDICAL-OUTPATIENT/HOME MEDICAL - 0.5%
Select Medical Corp.
7.625% 02/01/15 (a) 8,440,000 8,693,200
-------------
8,693,200
-------------
Health Care Services Total 111,020,254
HOUSEHOLD PRODUCTS/WARES - 1.3%
CONSUMER PRODUCTS-MISCELLANEOUS - 1.3%
Scotts Co.
6.625% 11/15/13 21,530,000 22,741,062
-------------
22,741,062
-------------
Household Products/Wares Total 22,741,062
PHARMACEUTICALS - 2.2%
MEDICAL-WHOLESALE DRUG DISTRIBUTION - 0.7%
AmerisourceBergen Corp.
7.250% 11/15/12 6,280,000 6,986,500
8.125% 09/01/08 5,985,000 6,643,350
-------------
13,629,850
See Accompanying Notes to Financial Statements. | 125
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia High Yield Fund
PAR ($) VALUE ($)
------- -------------
CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED)
CONSUMER NON-CYCLICAL - (CONTINUED)
PHARMACEUTICALS - (CONTINUED)
PHARMACY SERVICES - 1.5%
Omnicare, Inc.
6.125% 06/01/13 10,700,000 10,726,750
Series B,
8.125% 03/15/11 14,740,000 15,698,100
-------------
26,424,850
-------------
Pharmaceuticals Total 40,054,700
-------------
CONSUMER NON-CYCLICAL TOTAL 310,157,641
ENERGY - 14.1%
COAL - 3.5%
Arch Western Finance LLC
6.750% 07/01/13 28,790,000 29,869,625
Peabody Energy Corp.
5.875% 04/15/16 2,775,000 2,809,687
6.875% 03/15/13 26,655,000 28,920,675
-------------
61,599,987
-------------
Coal Total 61,599,987
OIL & GAS - 5.6%
OIL & GAS DRILLING - 0.9%
Pride International, Inc.
7.375% 07/15/14 14,505,000 16,028,025
-------------
16,028,025
OIL COMPANIES-EXPLORATION & PRODUCTION - 4.7%
Chesapeake Energy Corp.
6.375% 06/15/15 (a) 18,735,000 19,765,425
7.500% 09/15/13 10,195,000 11,239,987
7.750% 01/15/15 425,000 468,562
Newfield Exploration Co.
6.625% 09/01/14 (a) 18,940,000 20,384,175
Plains Exploration & Production Co.
7.125% 06/15/14 13,265,000 14,591,500
Pogo Producing Co.
8.250% 04/15/11 3,080,000 3,295,600
Vintage Petroleum, Inc.
7.875% 05/15/11 7,125,000 7,641,563
8.250% 05/01/12 6,025,000 6,642,563
-------------
84,029,375
-------------
Oil & Gas Total 100,057,400
PAR ($) VALUE ($)
------- -------------
OIL & GAS SERVICES - 3.3%
OIL FIELD MACHINERY & EQUIPMENT - 1.8%
Grant Prideco, Inc.
9.000% 12/15/09 14,995,000 16,531,987
9.625% 12/01/07 12,720,000 14,151,000
-------------
30,682,987
OIL-FIELD SERVICES - 1.5%
Hornbeck Offshore Services, Inc.
6.125% 12/01/14 (a) 9,975,000 9,999,938
Universal Compression, Inc.
7.250% 05/15/10 16,245,000 17,057,250
-------------
27,057,188
-------------
Oil & Gas Services Total 57,740,175
PIPELINES - 1.7%
MarkWest Energy Partners
6.875% 11/01/14 (a) 8,725,000 8,964,938
William Companies, Inc.
7.125% 09/01/11 1,935,000 2,128,500
8.125% 03/15/12 16,220,000 18,896,300
-------------
29,989,738
-------------
Pipelines Total 29,989,738
-------------
ENERGY TOTAL 249,387,300
FINANCIALS - 0.9%
REAL ESTATE INVESTMENT TRUSTS - 0.9%
REAL ESTATE INVESTMENT TRUSTS-DIVERSIFIED - 0.9%
iStar Financial, Inc., REIT
Series B,
5.125% 04/01/11 7,350,000 7,343,679
7.000% 03/15/08 7,900,000 8,386,956
-------------
15,730,635
-------------
Real Estate Investment Trusts Total 15,730,635
-------------
FINANCIALS TOTAL 15,730,635
INDUSTRIALS - 15.9%
AEROSPACE & DEFENSE - 2.9%
AEROSPACE/DEFENSE-EQUIPMENT - 0.9%
TransDigm, Inc.
8.375% 07/15/11 15,710,000 16,770,425
-------------
16,770,425
ELECTRONICS-MILITARY - 2.0%
L-3 Communications Corp.
6.125% 07/15/13 1,855,000 1,908,331
7.625% 06/15/12 30,275,000 32,999,750
-------------
34,908,081
-------------
Aerospace & Defense Total 51,678,506
126 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia High Yield Fund
PAR ($) VALUE ($)
------- -------------
CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED)
INDUSTRIALS - (CONTINUED)
ENVIRONMENTAL CONTROL - 1.5%
ALTERNATIVE WASTE TECHNOLOGY - 0.5%
Synagro Technologies, Inc.
9.500% 04/01/09 8,375,000 9,170,625
-------------
9,170,625
NON-HAZARDOUS WASTE DISPOSAL - 1.0%
Allied Waste North America, Inc.
6.375% 04/15/11 7,535,000 7,346,625
6.500% 11/15/10 7,875,000 7,756,875
Series B,
9.250% 09/01/12 2,075,000 2,292,875
-------------
17,396,375
-------------
Environmental Control Total 26,567,000
HAND/MACHINE TOOLS - 0.9%
MACHINE TOOLS & RELATED PRODUCTS - 0.9%
Kennametal, Inc.
7.200% 06/15/12 15,195,000 16,864,171
-------------
16,864,171
-------------
Hand/Machine Tools Total 16,864,171
MACHINERY DIVERSIFIED - 1.1%
MACHINERY-GENERAL INDUSTRY - 1.1%
Manitowoc Co., Inc.
7.125% 11/01/13 1,315,000 1,420,200
Westinghouse Air Brake
Technologies Corp.
6.875% 07/31/13 16,475,000 17,339,938
-------------
18,760,138
-------------
Machinery Diversified Total 18,760,138
PACKAGING & CONTAINERS - 6.4%
CONTAINERS-METAL/GLASS - 5.0%
Ball Corp.
6.875% 12/15/12 32,897,000 35,035,305
7.750% 08/01/06 2,850,000 2,981,812
Owens-Brockway Glass Container
6.750% 12/01/14 (a) 3,875,000 3,971,875
8.875% 02/15/09 7,225,000 7,821,063
Owens-Illinois, Inc.
7.500% 05/15/10 13,500,000 14,276,250
Silgan Holdings, Inc.
6.750% 11/15/13 22,380,000 23,163,300
-------------
87,249,605
PAR ($) VALUE ($)
------- -------------
CONTAINERS-PAPER/PLASTIC - 1.4%
Smurfit-Stone Container Corp.
7.375% 07/15/14 8,450,000 8,830,250
8.250% 10/01/12 4,505,000 4,876,662
8.375% 07/01/12 5,185,000 5,612,763
9.750% 02/01/11 5,425,000 5,913,250
-------------
25,232,925
-------------
Packaging & Containers Total 112,482,530
TRANSPORTATION - 3.1%
TRANSPORT-MARINE - 1.9%
Teekay Shipping Corp.
8.875% 07/15/11 29,776,000 34,465,720
-------------
34,465,720
TRANSPORT-SERVICES - 1.2%
Offshore Logistics, Inc.
6.125% 06/15/13 20,800,000 20,904,000
-------------
20,904,000
-------------
Transportation Total 55,369,720
-------------
INDUSTRIALS TOTAL 281,722,065
TECHNOLOGY - 1.1%
SEMICONDUCTORS - 1.1%
ELECTRONIC COMPONENTS-SEMICONDUCTORS - 1.1%
Freescale Semiconductor, Inc.
6.875% 07/15/11 18,430,000 19,812,250
-------------
19,812,250
-------------
Semiconductors Total 19,812,250
-------------
TECHNOLOGY TOTAL 19,812,250
UTILITIES - 2.4%
ELECTRIC - 2.4%
ELECTRIC-GENERATION - 1.8%
AES Corp.
7.750% 03/01/14 14,130,000 15,631,312
Texas Genco LLC
6.875% 12/15/14 (a) 15,790,000 16,776,875
-------------
32,408,187
ELECTRIC-INTEGRATED - 0.6%
Nevada Power Co.
5.875% 01/15/15 (a) 5,000,000 5,087,500
6.500% 04/15/12 3,950,000 4,187,000
Northwestern Corp.
5.875% 11/01/14 (a) 975,000 992,063
-------------
10,266,563
-------------
Electric Total 42,674,750
-------------
UTILITIES TOTAL 42,674,750
Total Corporate Fixed-Income Bonds & Notes
(Cost of $1,576,788,206) 1,634,287,951
See Accompanying Notes to Financial Statements. | 127
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia High Yield Fund
PAR ($) VALUE ($)
------- -------------
SHORT-TERM OBLIGATION - 6.4%
Repurchase agreement with State Street
Bank & Trust Co., dated 02/28/05,
due 03/01/05 at 2.500%, collateralized
by a U.S. Treasury Note maturing
09/30/06, market value of
$114,839,017 (repurchase
proceeds $112,590,818) 112,583,000 112,583,000
-------------
Total Short-Term Obligation
(Cost of $112,583,000) 112,583,000
TOTAL INVESTMENTS - 98.7%
(COST OF $1,689,371,206) (B) 1,746,870,951
OTHER ASSETS & LIABILITIES, NET - 1.3% 23,337,612
NET ASSETS - 100.0% 1,770,208,563
NOTES TO INVESTMENT PORTFOLIO:
(a) Security exempt from registration pursuant to Rule 144A under the Securities
Act of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At February 28,
2005, these securities amounted to $241,526,123, which represents 13.6% of
net assets.
(b) Cost for federal income tax purposes is $1,697,231,933.
At February 28, 2005, the Fund held investments in the following sectors:
% OF
SECTOR NET ASSETS
----------------------------------------------------------------
Consumer Cyclical 20.5%
Consumer Non-Cyclical 17.5
Industrials 15.9
Communications 14.8
Energy 14.1
Basic Materials 5.1
Utilities 2.4
Technology 1.1
Financials 0.9
Short-Term Obligation 6.4
Other Assets & Liabilities, Net 1.3
-----
100.0%
=====
ACRONYM NAME
------- ----
REIT Real Estate Investment Trust
128 | See Accompanying Notes to Financial Statements.
INVESTMENT PORTFOLIO ___________________________________________________________
February 28, 2005 (Unaudited) Columbia Daily Income Company
PAR ($) VALUE ($)
------- -------------
CORPORATE FIXED-INCOME BONDS & NOTES - 37.7%
CONSUMER CYCLICAL - 0.2%
AUTO MANUFACTURERS - 0.2%
Toyota Motor Credit Corp.
2.635% 03/17/05 (a) 1,000,000 1,000,047
-------------
Auto Manufacturers Total 1,000,047
-------------
CONSUMER CYCLICAL TOTAL 1,000,047
CONSUMER NON-CYCLICAL - 0.9%
PHARMACEUTICALS - 0.9%
Pfizer, Inc.
2.690% 11/04/05 (a) 5,000,000 4,997,750
-------------
Pharmaceuticals Total 4,997,750
-------------
CONSUMER NON-CYCLICAL TOTAL 4,997,750
FINANCIALS - 36.6%
COMMERCIAL BANKS - 7.5%
First Tennessee Bank
2.750% 05/03/05 (a) 15,000,000 15,000,522
US Bank NA
2.770% 02/17/06 (a) 9,000,000 8,999,930
Wells Fargo & Co.:
2.570% 03/24/05 (a) 7,000,000 7,000,422
2.579% 09/29/05 (a) 10,000,000 10,003,343
-------------
Commercial Banks Total 41,004,217
DIVERSIFIED FINANCIAL SERVICES - 29.1%
500 Thomas Moore Building LLC
LOC: Fifth Third Bank
2.700% 06/01/22 (a) 1,105,000 1,105,000
American Express Credit Corp.
2.600% 06/15/05 (a) 4,000,000 4,000,316
2.600% 08/09/05 (a) 5,000,000 5,000,621
American Made LLC
LOC: National City Bank
2.680% 12/01/24 (a) 6,300,000 6,300,000
Beckfield Properties LLC
LOC: Fifth Third Bank
2.700% 12/01/24 (a) 1,000,000 1,000,000
Bedford Hills Golf Club, Inc.
LOC: Fifth Third Bank
2.700% 04/01/13 (a) 1,000,000 1,000,000
CC USA, Inc.
2.398% 12/02/05 (a)(b) 5,000,000 4,998,958
Central Avenue Properties Ltd.
LOC: Fifth Third Bank
2.700% 11/01/23 (a) 1,225,000 1,225,000
Central Ohio Medical Textiles
LOC: National City Bank
2.640% 03/01/23 (a) 13,500,000 13,500,000
PAR ($) VALUE ($)
------- -------------
Central Supply Co.
LOC: Fifth Third Bank
2.700% 08/01/23 (a) 2,000,000 2,000,000
Chagrin Valley Partners LLC
LOC: Fifth Third Bank
2.700% 11/01/13 (a) 1,080,000 1,080,000
Citigroup, Inc.
2.900% 05/19/05 (a) 15,000,000 15,001,919
Crestmont Nursing Home
LOC: Fifth Third Bank
2.650% 03/01/24 (a) 1,465,000 1,465,000
DiGerinomo Aggregates
LOC: National City Bank
2.680% 01/01/15 (a) 5,600,000 5,600,000
Falls Village Realty LLC
LOC: Fifth Third Bank
2.700% 12/01/29 (a) 2,000,000 2,000,000
Fresh Unlimited, Inc.
LOC: Fifth Third Bank
2.700% 11/01/44 (a) 1,000,000 1,000,000
General Electric Capital Corp.:
2.615% 03/15/05 (a) 7,932,000 7,932,587
7.500% 05/15/05 5,564,000 5,619,588
Grand Rapids Christian School
LOC: Fifth Third Bank
2.700% 09/01/28 (a) 4,120,000 4,120,000
Harlan Development Co.:
LOC: Fifth Third Bank
2.700% 12/01/23 (a) 6,960,000 6,960,000
Harrier Finance Funding LLC
2.660% 10/25/05 (a)(b) 10,000,000 10,000,000
Holten Meat, Inc.
LOC: US Bank NA
2.630% 05/01/25 (a) 6,475,000 6,475,000
Keating Muething & Klekamp
LOC: Fifth Third Bank
2.700% 11/01/24 (a) 1,000,000 1,000,000
Lehmann Property Group
LOC: Fifth Third Bank
2.700% 07/01/22 (a) 1,460,000 1,460,000
LRC Meadows Investors LLC
2.750% 12/01/34 (a) 1,300,000 1,300,000
LTC Investors LLC
LOC: National City Bank
2.700% 11/01/24 (a) 2,320,000 2,320,000
Materials Processing, Inc.
LOC: Fifth Third Bank
2.700% 09/01/34 (a) 905,000 905,000
R.O. Davis Real Estate LLC
LOC: Fifth Third Bank
2.700% 04/01/23 (a) 1,000,000 1,000,000
RDV Finance LLC
LOC: Fifth Third Bank
2.650% 10/01/39 (a) 3,000,000 3,000,000
See Accompanying Notes to Financial Statements. | 129
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Daily Income Company
PAR ($) VALUE ($)
------- -------------
CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED)
FINANCIALS - (CONTINUED)
DIVERSIFIED FINANCIAL SERVICES - (CONTINUED)
Scott Street Land Co.
LOC: Fifth Third Bank
2.700% 01/03/22 (a) 940,000 940,000
Skeletal Properties LLC
LOC: Fifth Third Bank
2.700% 06/01/34 (a) 1,000,000 1,000,000
Spartan Medical Facility
LOC: Fifth Third Bank
2.700% 12/01/26 (a) 1,500,000 1,500,000
Sumner Medical Plaza LLC
LOC: Fifth Third Bank
2.700% 10/01/10 (a) 3,470,000 3,470,000
Tango Finance Corp.
2.650% 01/17/06 (a)(b) 10,000,000 10,001,120
Titan Holdings Group LLC
LOC: Fifth Third Bank
2.700% 05/01/12 (a) 1,655,000 1,655,000
Union Hospital, Inc.
LOC: Fifth Third Bank
2.700% 09/01/25 (a) 2,150,000 2,150,000
Vancouver Clinic Building LLC
LOC: US Bank NA
2.630% 02/01/25 (a) 5,000,000 5,000,000
Whistlejacket Capital Ltd.
2.550% 10/14/05 (a)(b) 5,000,000 4,998,935
White Pine Finance LLC
2.393% 09/07/05 (a)(b) 10,000,000 9,997,929
-------------
Diversified Financial Services Total 159,081,973
-------------
FINANCIALS TOTAL 200,086,190
Total Corporate Fixed-Income Bonds & Notes
(Cost of $206,083,987) 206,083,987
MUNICIPAL BONDS - 25.2%
ALASKA - 0.8%
AK Four Dam Pool Electric Revenue
Series B,
LOC: Dexia Credit Local
2.600% 07/01/26 (a) 4,250,000 4,250,000
-------------
ALASKA TOTAL 4,250,000
CALIFORNIA - 7.7%
CA Abag Finance Authority for
Nonprofit Corps.
Multifamily Revenue
Fine Arts Building Apartments,
Series 2002 A,
LOC: FNMA
2.580% 07/15/35 (a) 3,800,000 3,800,000
PAR ($) VALUE ($)
------- -------------
CA Educational Facilities
Authority Revenue
University Judaism,
Series B,
LOC: Allied Irish Bank
2.720% 12/01/28 (a) 6,000,000 6,000,000
CA San Diego Metropolitan
Transportation Development Board
Pension Obligation Revenue,
Series B,
Insured: MBIA,
SPA: Dexia Credit Local
2.570% 12/01/33 (a) 17,595,000 17,595,000
CA San Jose Redevelopment Agency
Revenue Merged Area,
Series H,
LOC: Bank of New York
2.600% 08/01/29 (a) 14,600,000 14,600,000
-------------
CALIFORNIA TOTAL 41,995,000
COLORADO - 3.8%
CO Housing & Finance Authority
Single Family Class Revenue,
Class I-B1,
SPA: Dexia Credit Local
2.570% 11/01/34 (a) 21,000,000 21,000,000
-------------
COLORADO TOTAL 21,000,000
FLORIDA - 1.4%
FL Homestead Special
Obligation Revenue
Speedway Project,
LOC: Suntrust Bank
2.590% 11/01/18 (a) 6,665,000 6,665,000
FL Housing Finance Corp. Revenue
Waterford Pointe,
Series E-2,
LOC: FNMA
2.770% 02/15/33 (a) 1,150,000 1,150,000
-------------
FLORIDA TOTAL 7,815,000
GEORGIA - 0.2%
GA Burke County Industrial
Development Authority Revenue
Fleetguard, Inc. Project,
LOC: Fifth Third Bank
2.700% 08/01/18 (a) 925,000 925,000
-------------
GEORGIA TOTAL 925,000
INDIANA - 0.5%
IN First Pentecostal Church, Inc.
Noblesville Revenue,
LOC: JPMorgan Chase Bank
2.650% 11/01/26 (a) 1,620,000 1,620,000
130 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Daily Income Company
PAR ($) VALUE ($)
------- -------------
MUNICIPAL BONDS - (CONTINUED)
INDIANA - (CONTINUED)
IN Industrial Development
Authority Revenue
Lawrence Utilities,
Series 2003 B,
LOC: Fifth Third Bank
2.720% 07/01/23 (a) 1,000,000 1,000,000
-------------
INDIANA TOTAL 2,620,000
MARYLAND - 2.0%
MD Baltimore Project Revenue
Baltimore Parking Facilities
Series 2002
Insured: FGIC
SPA: Dexia Credit Local
2.620% 07/01/32 (a) 11,000,000 11,000,000
-------------
MARYLAND TOTAL 11,000,000
MASSACHUSETTS - 1.3%
MA State Housing Finance
Agency Revenue
Avalon Upper Falls LLC
Series 2004 A
LOC: JP MorganChase Bank
2.570% 12/01/34 (a) 6,800,000 6,800,000
-------------
MASSACHUSETTS TOTAL 6,800,000
MICHIGAN - 2.7%
MI Oakland County
1.625% 05/01/05 15,000,000 14,975,516
-------------
MICHIGAN TOTAL 14,975,516
PENNSYLVANIA - 2.5%
PA Donegal Crossing LLC
LOC: Federal Home Loan Bank
2.720% 08/15/27 (a) 13,615,000 13,615,000
-------------
PENNSYLVANIA TOTAL 13,615,000
TEXAS - 2.3%
TX Harris County Houston Texas
Sports Authority Special Revenue
Series E,
Insured: MBIA,
SPA: JPMorgan Chase Bank
2.600% 11/15/30 (a) 12,600,000 12,600,000
-------------
TEXAS TOTAL 12,600,000
Total Municipal Bonds
(Cost of $137,595,516) 137,595,516
PAR ($) VALUE ($)
------- -------------
COMMERCIAL PAPER - 23.1%
Brahms Funding Corp.
2.700% 03/01/05 (b) 10,303,000 10,303,000
Cancara Asset Securitisation LLC
2.740% 05/18/05 (b) 7,000,000 6,958,443
CC U.S.A., Inc.
2.740% 05/18/05 (b) 5,000,000 4,970,317
Giro Balanced Funding Corp.
2.370% 03/07/05 (b) 15,000,000 14,994,075
Grampian Holdings PLC
2.860% 06/30/05 (b) 8,000,000 7,923,098
Greenwich Capital Holdings
2.550% 04/08/05 (a) 10,000,000 10,000,000
Harrier Group PLC
2.720% 06/10/05 (b) 8,000,000 7,938,951
Mane Funding Corp.
2.540% 04/07/05 (b) 5,000,000 4,986,947
Premier Asset Management PLC
2.350% 03/01/05 (b) 10,000,000 10,000,000
Sigma Finance, Inc.
2.370% 03/01/05 (b) 20,000,000 20,000,000
Thames Asset Global
Securitisation LLC
2.390% 03/09/05 (b) 15,000,000 14,992,033
Whistlejacket Capital Ltd.
2.540% 04/15/05 (b) 5,000,000 4,999,818
White Pine Finance LLC
2.500% 05/03/05 (b) 8,000,000 7,965,000
-------------
Total Commercial Paper
(Cost of $126,031,682) 126,031,682
CERTIFICATES OF DEPOSIT - 9.9%
Canadian Imperial Bank of Commerce
2.535% 06/08/05 (a) 15,000,000 14,999,295
CS First Boston
2.569% 12/29/05 (a) 8,000,000 8,001,640
JPMorgan Chase & Co.
3.120% 05/20/05 (a) 6,000,000 6,004,041
Landesbank Baden-Wuerttemberg
Girozentrale
2.610% 03/29/05 (a) 15,000,000 14,999,825
Unicredito Italiano S.p.A.
2.630% 07/27/05 (a) 10,000,000 9,997,278
-------------
Total Certificates of Deposit
(Cost of $54,002,079) 54,002,079
See Accompanying Notes to Financial Statements. | 131
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Daily Income Company
PAR ($) VALUE ($)
------- -------------
U.S. GOVERNMENT AGENCIES - 4.1%
Federal National Mortgage
Association (FNMA):
2.460% 03/23/05 (a) 2,500,000 2,499,995
2.430% 10/03/05 (a) 20,000,000 19,989,764
-------------
Total U.S. Government Agencies
(Cost of $22,489,759) 22,489,759
TOTAL INVESTMENTS - 100.0%
(COST OF $546,203,023) (C) 546,203,023
OTHER ASSETS & LIABILITIES, NET - 0.0% 5,996
NET ASSETS - 100.0% 546,209,019
NOTES TO INVESTMENT PORTFOLIO:
(a) Floating rate note. The interest rate shown reflects the rate as of February
28, 2005.
(b) Security exempt from registration pursuant to Rule 144A under the Securities
Act of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At February 28,
2005, these securities amounted to $156,028,624, which represents 28.6% of
net assets.
(c) Cost for federal income tax purposes is $546,203,023.
ACRONYM NAME
------- ----
FGIC Financial Guaranty Insurance Co.
FNMA Federal National Mortgage Association
MBIA MBIA Insurance Corp.
LOC Letter of Credit
SPA Standby Purchase Agreement
132 | See Accompanying Notes to Financial Statements.
This page intentionally left blank.
STATEMENTS OF ASSETS AND LIABILITIES ___________________________________________
February 28, 2005 (Unaudited) Columbia Funds
COMMON INTERNATIONAL MID CAP SMALL CAP
STOCK GROWTH STOCK GROWTH GROWTH
FUND ($) FUND ($) FUND ($) FUND ($) FUND ($)
-------------- -------------- -------------- -------------- --------------
ASSETS
Unaffiliated investments, at identified
cost (including short-term obligations) 198,193,246 631,338,598 565,225,710 741,891,108 249,783,973
Affiliated investments, at identified cost -- -- -- -- --
-------------- -------------- -------------- -------------- --------------
Total investments, at identified cost 198,193,246 631,338,598 565,225,710 741,891,108 249,783,973
-------------- -------------- -------------- -------------- --------------
Unaffiliated investments, at value 220,274,723 722,478,286 669,234,410 861,110,174 261,351,914
Affiliated investments, at value -- -- -- -- --
Repurchase agreement 525,000 -- 7,878,000 2,316,000 11,948,000
-------------- -------------- -------------- -------------- --------------
Total investments, at value 220,799,723 722,478,286 677,112,410 863,426,174 273,299,914
Cash 66 -- 359 857 978,750
Foreign currency
(cost of $80,836 and $1,487, respectively) -- -- 80,887 1,497 --
Receivable for:
Investments sold 12,862,053 28,947,899 6,849,194 1,894,583 4,401,610
Capital stock sold 236,158 292,795 695,077 598,986 304,064
Interest 36 -- 547 161 830
Dividends 278,865 851,019 872,501 204,783 28,162
Futures variation margin -- -- -- -- --
Foreign tax reclaim -- -- 166,930 -- --
Expense reimbursement due from
Investment Advisor -- -- -- -- --
Deferred compensation plan 3,250 14,170 3,791 15,499 3,726
Other assets 157,834 449,449 5,926 953,333 2,952
-------------- -------------- -------------- -------------- --------------
Total assets 234,337,985 753,033,618 685,787,622 867,095,873 279,020,008
-------------- -------------- -------------- -------------- --------------
LIABILITIES
Expense reimbursement due to
Investment Advisor -- -- -- -- --
Payable to custodian bank -- 4,155,863 -- -- --
Payable for:
Investments purchased 301,933 5,467,005 6,464,016 -- 6,688,433
Capital stock redeemed 5,642,768 5,065,507 757,117 1,273,722 10,024,581
Distributions -- -- -- -- --
Investment advisory fee 115,982 357,768 435,750 524,137 185,167
Transfer agent fee 129,102 255,348 42,647 196,278 102,427
Pricing and bookkeeping fees 16,392 11,144 8,849 11,497 9,816
Merger fees -- -- 17,775 -- --
Directors' fees -- -- -- 2,136 696
Audit fee 20,390 21,426 15,247 14,794 16,944
Service and distribution fees 2,028 5,299 14,697 13,433 --
Custody fee 7,878 -- 18,266 2,893 6,694
Legal fee 901 2,373 -- 7,096 4,831
Registration fees 24,528 -- -- 24,338 19,775
Reports to shareholders 24,092 44,670 45,234 105,771 29,605
Deferred compensation plan 3,250 14,170 3,791 15,499 3,726
-------------- -------------- -------------- -------------- --------------
Total liabilities 6,289,244 15,400,573 7,823,389 2,191,594 17,092,695
NET ASSETS 228,048,741 737,633,045 677,964,233 864,904,279 261,927,313
-------------- -------------- -------------- -------------- --------------
NET ASSETS CONSIST OF
Paid-in capital 248,764,571 915,183,202 564,922,546 798,692,334 246,240,406
Undistributed (overdistributed)
net investment income 182,214 512,736 84,031 -- --
Accumulated net investment loss -- -- -- (2,905,359) (1,932,697)
Accumulated net realized gain (loss) (43,504,521) (269,202,581) 1,050,482 (52,417,772) (5,896,337)
Unrealized appreciation (depreciation) on:
Investments 22,606,477 91,139,688 111,886,700 121,535,066 23,515,941
Foreign currency translations -- -- 20,474 10 --
Futures contracts -- -- -- -- --
-------------- -------------- -------------- -------------- --------------
NET ASSETS 228,048,741 737,633,045 677,964,233 864,904,279 261,927,313
134 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
Columbia Funds
REAL ESTATE STRATEGIC SHORT TERM
EQUITY TECHNOLOGY INVESTOR BALANCED BOND
FUND ($) FUND ($) FUND ($) FUND ($) FUND ($)
-------------- -------------- -------------- -------------- --------------
ASSETS
Unaffiliated investments, at identified
cost (including short-term obligations) 556,822,089 39,654,151 409,297,524 365,742,813 491,554,393
Affiliated investments, at identified cost -- -- -- -- 1,896,055
-------------- -------------- -------------- -------------- --------------
Total investments, at identified cost 556,822,089 39,654,151 409,297,524 365,742,813 493,450,448
-------------- -------------- -------------- -------------- --------------
Unaffiliated investments, at value 853,479,105 43,773,466 388,334,326 375,760,829 470,456,318
Affiliated investments, at value -- -- -- -- 1,851,535
Repurchase agreement 18,963,000 1,191,000 109,912,000 10,198,000 18,401,000
-------------- -------------- -------------- -------------- --------------
Total investments, at value 872,442,105 44,964,466 498,246,326 385,958,829 490,708,853
Cash 921 191 225 323 596
Foreign currency
(cost of $80,836 and $1,487, respectively) -- -- -- -- --
Receivable for:
Investments sold 4,188,919 1,586,090 4,424,847 1,009,754 --
Capital stock sold 1,052,348 490,760 1,852,069 715,475 1,106,692
Interest 1,317 83 7,633 1,149,534 3,281,788
Dividends 724,253 7,344 469,394 273,586 --
Futures variation margin -- -- -- 7,657 53,594
Foreign tax reclaim -- -- 13,910 -- --
Expense reimbursement due from
Investment Advisor -- -- -- -- --
Deferred compensation plan 5,138 2,168 13,483 3,650 10,855
Other assets 15,232 1,972 1,607 107,919 9,897
-------------- -------------- -------------- -------------- --------------
Total assets 878,430,233 47,053,074 505,029,494 389,226,727 495,172,275
-------------- -------------- -------------- -------------- --------------
LIABILITIES
Expense reimbursement due to
Investment Advisor -- 16,194 -- -- 16,455
Payable to custodian bank -- -- -- -- --
Payable for:
Investments purchased 1,797,842 3,152,118 2,799,041 418,061 --
Capital stock redeemed 2,016,431 177,193 613,811 3,229,059 823,048
Distributions -- -- -- -- 789,058
Investment advisory fee 516,692 28,825 281,097 157,209 160,434
Transfer agent fee 135,647 26,538 58,385 155,555 86,699
Pricing and bookkeeping fees 12,053 4,767 3,949 23,545 14,202
Merger fees -- -- -- -- --
Directors' fees 2,725 -- 237 -- --
Audit fee 9,999 16,200 14,892 23,570 21,194
Service and distribution fees 26,143 4,689 76,551 8,154 38,658
Custody fee 4,024 3,626 1,066 1,903 5,965
Legal fee 1,883 871 1,754 -- --
Registration fees 13,199 27,992 8,966 18,449 46,550
Reports to shareholders 85,733 8,998 29,581 18,333 7,179
Deferred compensation plan 5,138 2,168 13,483 3,650 10,855
-------------- -------------- -------------- -------------- --------------
Total liabilities 4,627,509 3,470,179 3,902,813 4,057,488 2,020,297
NET ASSETS 873,802,724 43,582,895 501,126,681 385,169,239 493,151,978
-------------- -------------- -------------- -------------- --------------
NET ASSETS CONSIST OF
Paid-in capital 512,545,848 37,058,894 396,023,071 405,858,038 497,149,481
Undistributed (overdistributed)
net investment income (1,442,510) -- 200,441 990,024 284,936
Accumulated net investment loss -- (336,464) -- -- --
Accumulated net realized gain (loss) 47,079,370 1,550,982 15,953,031 (41,900,308) (1,579,125)
Unrealized appreciation (depreciation) on:
Investments 315,620,016 5,310,315 88,948,802 20,216,016 (2,741,595)
Foreign currency translations -- (832) 1,336 -- --
Futures contracts -- -- -- 5,469 38,281
-------------- -------------- -------------- -------------- --------------
NET ASSETS 873,802,724 43,582,895 501,126,681 385,169,239 493,151,978
FIXED NATIONAL OREGON
INCOME MUNICIPAL MUNICIPAL DAILY
SECURITIES BOND BOND HIGH YIELD INCOME
FUND ($) FUND ($) FUND ($) FUND ($) COMPANY ($)
-------------- -------------- -------------- -------------- --------------
ASSETS
Unaffiliated investments, at identified
cost (including short-term obligations) 277,958,063 10,191,310 400,544,632 1,689,371,206 546,203,023
Affiliated investments, at identified cost -- -- -- -- --
-------------- -------------- -------------- -------------- --------------
Total investments, at identified cost 277,958,063 10,191,310 400,544,632 1,689,371,206 546,203,023
-------------- -------------- -------------- -------------- --------------
Unaffiliated investments, at value 276,066,461 10,651,523 421,071,925 1,634,287,951 546,203,023
Affiliated investments, at value -- -- -- -- --
Repurchase agreement 5,397,000 -- -- 112,583,000 --
-------------- -------------- -------------- -------------- --------------
Total investments, at value 281,463,461 10,651,523 421,071,925 1,746,870,951 546,203,023
Cash 491 22,641 32,169 3,110,323 35,150
Foreign currency
(cost of $80,836 and $1,487, respectively) -- -- -- -- --
Receivable for:
Investments sold -- 940,841 842,975 -- --
Capital stock sold 268,440 2,450 129,885 2,524,488 1,817,743
Interest 2,215,785 133,568 4,933,212 29,118,465 1,270,315
Dividends -- -- -- -- --
Futures variation margin 14,219 -- -- -- --
Foreign tax reclaim -- -- -- -- --
Expense reimbursement due from
Investment Advisor -- 21,646 -- -- --
Deferred compensation plan 3,849 1,004 4,010 8,213 4,493
Other assets 7,117 3,300 2,125 21,692 163,344
-------------- -------------- -------------- -------------- --------------
Total assets 283,973,362 11,776,973 427,016,301 1,781,654,132 549,494,068
-------------- -------------- -------------- -------------- --------------
LIABILITIES
Expense reimbursement due to
Investment Advisor -- -- -- -- --
Payable to custodian bank -- -- -- -- --
Payable for:
Investments purchased -- -- -- 3,234,272 --
Capital stock redeemed 542,296 752,563 659,206 2,750,824 2,785,003
Distributions -- 9,958 344,363 4,064,268 --
Investment advisory fee 113,589 4,781 166,048 739,673 213,445
Transfer agent fee 141,099 4,490 39,801 211,706 188,904
Pricing and bookkeeping fees 12,696 6,645 14,226 13,589 13,013
Merger fees -- -- -- -- --
Directors' fees -- -- 4,986 1,411 --
Audit fee 20,560 18,130 15,825 16,569 20,014
Service and distribution fees 8,562 1,393 2,662 259,058 --
Custody fee 2,883 1,504 3,238 5,971 5,014
Legal fee 2,588 1,732 5,638 3,896 --
Registration fees 13,659 17,886 26,530 43,133 31,693
Reports to shareholders 57,009 4,555 14,575 92,986 23,470
Deferred compensation plan 3,849 1,004 4,010 8,213 4,493
-------------- -------------- -------------- -------------- --------------
Total liabilities 918,790 824,641 1,301,108 11,445,569 3,285,049
NET ASSETS 283,054,572 10,952,332 425,715,193 1,770,208,563 546,209,019
-------------- -------------- -------------- -------------- --------------
NET ASSETS CONSIST OF
Paid-in capital 278,948,666 10,390,500 405,721,612 1,730,539,231 546,209,725
Undistributed (overdistributed)
net investment income (1,144,058) 5,407 163,207 (12,628,636) --
Accumulated net investment loss -- -- -- -- --
Accumulated net realized gain (loss) 1,734,410 96,212 (696,919) (5,201,777) (706)
Unrealized appreciation (depreciation) on:
Investments 3,505,398 460,213 20,527,293 57,499,745 --
Foreign currency translations -- -- -- -- --
Futures contracts 10,156 -- -- -- --
-------------- -------------- -------------- -------------- --------------
NET ASSETS 283,054,572 10,952,332 425,715,193 1,770,208,563 546,209,019
See Accompanying Notes to Financial Statements. | 135
STATEMENTS OF ASSETS AND LIABILITIES ___________________________________________
February 28, 2005 (Unaudited) Columbia Funds
COMMON INTERNATIONAL MID CAP SMALL CAP
STOCK GROWTH STOCK GROWTH GROWTH
FUND ($) FUND ($) FUND ($) FUND ($) FUND ($)
-------------- -------------- -------------- -------------- --------------
CLASS A
Net assets 802,303 4,850,503 27,675,071 5,546,753 --
Shares outstanding 40,571 174,755 1,806,672 269,337 --
Net asset value per share (a)(b) 19.78 27.76 15.32 20.59 --
Maximum sales charge 5.75% 5.75% 5.75% 5.75% --
Maximum offering price per share (c) 20.99 29.45 16.25 21.85 --
-------------- -------------- -------------- -------------- --------------
CLASS B
Net assets 2,102,495 2,386,824 11,316,896 5,912,508 --
Shares outstanding 107,407 87,250 754,575 292,245 --
Net asset value and offering
price per share (a)(b) 19.58 27.36 15.00 20.23 --
-------------- -------------- -------------- -------------- --------------
CLASS C
Net assets 49,564 293,882 621,545 566,252 --
Shares outstanding 2,531 10,768 41,285 27,930 --
Net asset value and offering
price per share (a)(b) 19.58 27.29 15.05 20.27 --
-------------- -------------- -------------- -------------- --------------
CLASS D
Net assets 122,693 119,322 749,574 538,665 --
Shares outstanding 6,271 4,358 49,607 26,596 --
Net asset value and offering
price per share (a)(b) 19.57 27.38 15.11 20.25 --
-------------- -------------- -------------- -------------- --------------
CLASS G
Net assets -- 13,330,906 -- 734,181 --
Shares outstanding -- 486,555 -- 36,391 --
Net asset value and offering
price per share (a) -- 27.40 -- 20.17 --
-------------- -------------- -------------- -------------- --------------
CLASS T
Net assets -- -- -- 28,306,653 --
Shares outstanding -- -- -- 1,371,801 --
Net asset value per share (a) -- -- -- 20.63 --
Maximum sales charge -- -- -- 5.75% --
Maximum offering price per share (c) -- -- -- 21.89 --
-------------- -------------- -------------- -------------- --------------
CLASS Z
Net assets 224,971,686 716,651,608 637,601,147 823,299,267 261,927,313
Shares outstanding 11,372,995 25,642,947 41,443,170 39,582,462 10,427,604
Net asset value and offering
price per share (b) 19.78 27.95 15.38 20.80 25.12
(a) Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
(b) Redemption price per share is equal to net asset value less any applicable
redemption fees.
(c) On sales of $50,000 or more the offering price is reduced.
136 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
Columbia Funds
REAL ESTATE STRATEGIC SHORT TERM
EQUITY TECHNOLOGY INVESTOR BALANCED BOND
FUND ($) FUND ($) FUND ($) FUND ($) FUND ($)
------------- ------------- ------------- ------------- -------------
CLASS A
Net assets 40,331,554 7,287,061 143,707,286 2,905,507 24,088,676
Shares outstanding 1,598,930 931,221 7,012,583 138,284 2,808,486
Net asset value per share (a)(b) 25.22 7.83 20.49 21.01 8.58
Maximum sales charge 5.75% 5.75% 5.75% 5.75% 4.75%
Maximum offering price per share (c) 26.76 8.31 21.74 22.29 9.01
-------------- -------------- -------------- -------------- --------------
CLASS B
Net assets 13,534,492 2,831,410 38,294,306 7,836,882 22,109,335
Shares outstanding 536,336 368,983 1,894,328 373,499 2,577,733
Net asset value and offering
price per share (a)(b) 25.24 7.67 20.22 20.98 8.58
-------------- -------------- -------------- -------------- --------------
CLASS C
Net assets 3,786,592 1,390,240 30,184,805 841,699 3,121,237
Shares outstanding 150,166 180,782 1,492,568 40,111 363,904
Net asset value and offering
price per share (a)(b) 25.22 7.69 20.22 20.98 8.58
-------------- -------------- -------------- -------------- --------------
CLASS D
Net assets 4,280,182 21,463 650,230 328,820 7,599,789
Shares outstanding 169,646 2,780 32,175 15,675 886,066
Net asset value and offering
price per share (a)(b) 25.23 7.72 20.21 20.98 8.58
-------------- -------------- -------------- -------------- --------------
CLASS G
Net assets -- -- -- -- 881,426
Shares outstanding -- -- -- -- 102,766
Net asset value and offering
price per share (a) -- -- -- -- 8.58
-------------- -------------- -------------- -------------- --------------
CLASS T
Net assets -- -- -- -- 19,465,624
Shares outstanding -- -- -- -- 2,269,504
Net asset value per share (a) -- -- -- -- 8.58
Maximum sales charge -- -- -- -- 4.75%
Maximum offering price per share (c) -- -- -- -- 9.01
-------------- -------------- -------------- -------------- --------------
CLASS Z
Net assets 811,869,904 32,052,721 288,290,054 373,256,331 415,885,891
Shares outstanding 32,168,410 4,061,584 14,045,432 17,776,786 48,488,676
Net asset value and offering
price per share (b) 25.24 7.89 20.53 21.00 8.58
FIXED NATIONAL OREGON
INCOME MUNICIPAL MUNICIPAL DAILY
SECURITIES BOND BOND HIGH YIELD INCOME
FUND ($) FUND ($) FUND ($) FUND ($) COMPANY ($)
-------------- -------------- -------------- -------------- --------------
CLASS A
Net assets 12,184,030 1,527,683 4,000,369 350,819,020 --
Shares outstanding 917,670 150,556 323,024 39,799,216 --
Net asset value per share (a)(b) 13.28 10.15 12.38 8.81 --
Maximum sales charge 4.75% 4.75% 4.75% 4.75% --
Maximum offering price per share (c) 13.94 10.66 13.00 9.25 --
-------------- -------------- -------------- -------------- --------------
CLASS B
Net assets 4,027,135 766,368 1,245,939 101,165,052 --
Shares outstanding 303,313 75,527 100,608 11,476,876 --
Net asset value and offering
price per share (a)(b) 13.28 10.15 12.38 8.81 --
-------------- -------------- -------------- -------------- --------------
CLASS C
Net assets 221,220 355,123 401,635 22,754,438 --
Shares outstanding 16,661 34,998 32,433 2,581,469 --
Net asset value and offering
price per share (a)(b) 13.28 10.15 12.38 8.81 --
-------------- -------------- -------------- -------------- --------------
CLASS D
Net assets 1,495,516 259,101 780,835 73,770,069 --
Shares outstanding 112,639 25,535 63,051 8,368,998 --
Net asset value and offering
price per share (a)(b) 13.28 10.15 12.38 8.81 --
-------------- -------------- -------------- -------------- --------------
CLASS G
Net assets -- -- -- -- --
Shares outstanding -- -- -- -- --
Net asset value and offering
price per share (a) -- -- -- -- --
-------------- -------------- -------------- -------------- --------------
CLASS T
Net assets -- -- -- -- --
Shares outstanding -- -- -- -- --
Net asset value per share (a) -- -- -- -- --
Maximum sales charge -- -- -- -- --
Maximum offering price per share (c) -- -- -- -- --
-------------- -------------- -------------- -------------- --------------
CLASS Z
Net assets 265,126,671 8,044,057 419,286,415 1,221,699,984 546,209,019
Shares outstanding 19,968,711 792,653 33,856,656 138,596,820 546,209,725
Net asset value and offering
price per share (b) 13.28 10.15 12.38 8.81 1.00
See Accompanying Notes to Financial Statements. | 137
STATEMENTS OF OPERATIONS _______________________________________________________
For the Six Months Ended February 28, 2005 (Unaudited) Columbia Funds
COMMON INTERNATIONAL MID CAP SMALL CAP
STOCK GROWTH STOCK GROWTH GROWTH
FUND ($) FUND ($) FUND ($) FUND ($) FUND ($)
------------- ------------- ------------- ------------- -------------
NET INVESTMENT INCOME
INCOME
Dividends 2,925,955 7,257,527 4,254,312 1,668,758 310,047
Interest 44,789 46,234 177,664 90,133 40,082
Interest from affiliates -- -- -- -- --
Foreign taxes withheld (2,509) (10,840) (165,228) (15,641) --
-------------- -------------- -------------- -------------- --------------
Total income 2,968,235 7,292,921 4,266,748 1,743,250 350,129
-------------- -------------- -------------- -------------- --------------
EXPENSES
Investment advisory fee 841,103 2,408,712 2,895,191 3,609,766 1,760,580
Distribution fee:
Class B 7,893 8,941 40,135 20,610 --
Class C 165 1,041 2,508 2,103 --
Class D 455 524 2,826 2,251 --
Class G -- 43,411 -- 2,260 --
Service fee:
Class A 1,218 6,170 32,272 6,202 --
Class B 2,631 2,980 13,378 6,870 --
Class C 55 347 836 701 --
Class D 152 175 942 751 --
Class G -- 20,036 -- 1,043 --
Shareholder services fee - Class T -- -- -- 40,556 --
Transfer agent fee 341,831 756,182 377,748 760,503 296,130
Pricing and bookkeeping fees 61,338 78,219 83,684 80,033 66,104
Directors' fees 6,691 9,680 7,879 16,193 12,292
Custody fee 14,155 14,699 185,358 18,822 26,757
Audit fee 16,444 17,480 16,965 14,948 17,099
Registration fees 42,347 26,533 57,078 60,415 33,237
Merger costs -- -- 17,775 -- --
Non-recurring costs (See Note 10) 2,299 6,719 5,715 7,512 2,733
Other expenses 39,166 68,333 77,963 145,661 65,293
-------------- -------------- -------------- -------------- --------------
Total Operating Expenses 1,377,943 3,470,182 3,818,253 4,797,200 2,280,225
Interest expense -- -- -- 5,137 5,340
-------------- -------------- -------------- -------------- --------------
Total Expenses 1,377,943 3,470,182 3,818,253 4,802,337 2,285,565
Expenses waived/reimbursed by
Investment Advisor -- -- (102,216) -- --
Fees waived by Distributor:
Class C -- -- -- -- --
Class D -- -- -- -- --
Fees waived by Transfer Agent -- -- (300,616) (219,053) --
Non-recurring costs assumed by
Investment Advisor (See Note 10) (2,299) (6,719) (5,715) (7,512) (2,733)
Custody earnings credit (3) -- (25) (1,036) (6)
-------------- -------------- -------------- -------------- --------------
Net Expenses 1,375,641 3,463,463 3,409,681 4,574,736 2,282,826
-------------- -------------- -------------- -------------- --------------
Net Investment Income (Loss) 1,592,594 3,829,458 857,067 (2,831,486) (1,932,697)
138 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
Columbia Funds
REAL ESTATE STRATEGIC SHORT TERM
EQUITY TECHNOLOGY INVESTOR BALANCED BOND
FUND ($) FUND ($) FUND ($) FUND ($) FUND ($)
------------- ------------- ------------- ------------- -------------
NET INVESTMENT INCOME
INCOME
Dividends 24,203,923 24,817 2,614,815 2,989,334 --
Interest 201,029 9,514 1,075,367 3,905,103 8,608,182
Interest from affiliates -- -- -- -- 45,118
Foreign taxes withheld (19,805) (67) (39,358) (2,349) --
-------------- -------------- -------------- -------------- --------------
Total income 24,385,147 34,264 3,650,824 6,892,088 8,653,300
-------------- -------------- -------------- -------------- --------------
EXPENSES
Investment advisory fee 3,536,584 189,093 1,701,237 1,101,994 1,198,182
Distribution fee:
Class B 47,894 9,977 109,763 28,047 88,330
Class C 11,605 2,953 86,876 2,992 11,980
Class D 15,883 94 2,471 1,253 31,696
Class G -- -- -- -- 3,113
Service fee:
Class A 47,214 5,583 149,582 3,365 32,504
Class B 15,965 3,326 36,588 9,349 29,444
Class C 3,868 985 28,873 997 3,994
Class D 5,295 31 824 417 10,565
Class G -- -- -- -- 718
Shareholder services fee - Class T -- -- -- -- 15,160
Transfer agent fee 543,560 83,983 346,046 392,581 223,610
Pricing and bookkeeping fees 79,406 31,396 73,658 93,024 94,169
Directors' fees 16,471 3,298 7,408 8,813 8,342
Custody fee 13,309 8,385 21,833 18,755 16,192
Audit fee 14,851 12,254 16,846 18,924 17,248
Registration fees 67,894 47,542 50,857 43,067 68,648
Merger costs -- -- -- -- --
Non-recurring costs (See Note 10) 8,095 372 4,100 3,583 4,404
Other expenses 142,561 10,742 57,385 48,467 40,127
-------------- -------------- -------------- -------------- --------------
Total Operating Expenses 4,570,455 410,014 2,694,347 1,775,628 1,898,426
Interest expense -- -- -- -- --
-------------- -------------- -------------- -------------- --------------
Total Expenses 4,570,455 410,014 2,694,347 1,775,628 1,898,426
Expenses waived/reimbursed by
Investment Advisor -- (43,327) -- -- (29,236)
Fees waived by Distributor:
Class C -- -- -- -- (9,584)
Class D -- -- -- -- (25,356)
Fees waived by Transfer Agent -- -- (68,050) -- --
Non-recurring costs assumed by
Investment Advisor (See Note 10) (8,095) (372) (4,100) (3,583) (4,404)
Custody earnings credit (1,558) (320) (588) (35) (1,837)
-------------- -------------- -------------- -------------- --------------
Net Expenses 4,560,802 365,995 2,621,609 1,772,010 1,828,009
-------------- -------------- -------------- -------------- --------------
Net Investment Income (Loss) 19,824,345 (331,731) 1,029,215 5,120,078 6,825,291
FIXED NATIONAL OREGON
INCOME MUNICIPAL MUNICIPAL DAILY
SECURITIES BOND BOND HIGH YIELD INCOME
FUND ($) FUND ($) FUND ($) FUND ($) COMPANY ($)
-------------- -------------- -------------- -------------- --------------
NET INVESTMENT INCOME
INCOME
Dividends -- -- -- -- --
Interest 7,468,511 277,575 9,925,305 57,097,657 6,107,967
Interest from affiliates -- -- -- -- --
Foreign taxes withheld -- -- -- (24,861) --
-------------- -------------- -------------- -------------- --------------
Total income 7,468,511 277,575 9,925,305 57,072,796 6,107,967
-------------- -------------- -------------- -------------- --------------
EXPENSES
Investment advisory fee 783,160 34,435 1,074,375 4,961,823 1,472,270
Distribution fee:
Class B 15,357 2,720 4,527 383,162 --
Class C 766 1,352 1,318 81,657 --
Class D 6,043 1,347 2,937 298,924 --
Class G -- -- -- -- --
Service fee:
Class A 14,547 2,501 4,754 427,367 --
Class B 5,119 906 1,509 127,721 --
Class C 255 451 439 27,219 --
Class D 2,014 449 979 99,641 --
Class G -- -- -- -- --
Shareholder services fee - Class T -- -- -- -- --
Transfer agent fee 341,321 9,242 129,420 868,318 701,559
Pricing and bookkeeping fees 71,877 33,169 86,718 89,156 79,121
Directors' fees 7,228 1,792 10,213 25,766 11,009
Custody fee 11,150 3,711 11,526 30,684 14,593
Audit fee 18,214 15,784 17,981 16,723 16,067
Registration fees 41,683 40,239 47,487 99,046 48,198
Merger costs -- -- -- -- --
Non-recurring costs (See Note 10) 2,599 114 3,707 15,281 --
Other expenses 55,136 5,689 43,679 237,756 69,419
-------------- -------------- -------------- -------------- --------------
Total Operating Expenses 1,376,469 153,901 1,441,569 7,790,244 2,412,236
Interest expense -- -- -- -- --
-------------- -------------- -------------- -------------- --------------
Total Expenses 1,376,469 153,901 1,441,569 7,790,244 2,412,236
Expenses waived/reimbursed by
Investment Advisor -- (98,849) -- -- --
Fees waived by Distributor:
Class C (153) (631) (615) (16,331) --
Class D (1,209) (629) (1,371) (59,785) --
Fees waived by Transfer Agent -- -- -- -- --
Non-recurring costs assumed by
Investment Advisor (See Note 10) (2,599) (114) (3,707) (15,281) --
Custody earnings credit (91) (443) (863) (11,794) (3,166)
-------------- -------------- -------------- -------------- --------------
Net Expenses 1,372,417 53,235 1,435,013 7,687,053 2,409,070
-------------- -------------- -------------- -------------- --------------
Net Investment Income (Loss) 6,096,094 224,340 8,490,292 49,385,743 3,698,897
See Accompanying Notes to Financial Statements. | 139
STATEMENTS OF OPERATIONS _______________________________________________________
For the Six Months Ended February 28, 2005 (Unaudited) Columbia Funds
COMMON INTERNATIONAL MID CAP SMALL CAP
STOCK GROWTH STOCK GROWTH GROWTH
FUND ($) FUND ($) FUND ($) FUND ($) FUND ($)
-------------- -------------- -------------- -------------- --------------
NETREALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS, FOREIGN CURRENCY,
FOREIGN CAPITAL GAINS TAX, FUTURES
CONTRACTS AND WRITTEN OPTIONS
Net realized gain (loss) on:
Unaffiliated investments 25,261,154 106,671,480 34,220,256 79,039,286 94,443,764
Affiliated investments -- -- -- -- --
Foreign currency transactions -- -- (485,129) (121) --
Foreign capital gains tax -- -- (185,530) -- --
Futures contracts -- -- -- -- --
Written options -- -- -- -- --
-------------- -------------- -------------- -------------- --------------
Net realized gain (loss) 25,261,154 106,671,480 33,549,597 79,039,165 94,443,764
-------------- -------------- -------------- -------------- --------------
Net change in unrealized appreciation
(depreciation) on:
Investments 1,249,477 (19,909,044) 70,192,486 96,218,575 (17,834,445)
Foreign currency translations -- -- 6,296 (9) --
Foreign capital gains tax -- -- 69,167 -- --
Futures contracts -- -- -- -- --
-------------- -------------- -------------- -------------- --------------
Net change in net unrealized
appreciation (depreciation) 1,249,477 (19,909,044) 70,267,949 96,218,566 (17,834,445)
-------------- -------------- -------------- -------------- --------------
Net Gain (Loss) 26,510,631 86,762,436 103,817,546 175,257,731 76,609,319
-------------- -------------- -------------- -------------- --------------
Net Increase Resulting From Operations 28,103,225 90,591,894 104,674,613 172,426,245 74,676,622
140 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
Columbia Funds
REAL ESTATE STRATEGIC SHORT TERM
EQUITY TECHNOLOGY INVESTOR BALANCED BOND
FUND ($) FUND ($) FUND ($) FUND ($) FUND ($)
-------------- -------------- -------------- -------------- --------------
NETREALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS, FOREIGN CURRENCY,
FOREIGN CAPITAL GAINS TAX, FUTURES
CONTRACTS AND WRITTEN OPTIONS
Net realized gain (loss) on:
Unaffiliated investments 35,675,864 4,370,719 18,071,454 25,853,287 (221,740)
Affiliated investments -- -- -- -- --
Foreign currency transactions -- (725) (26,833) -- --
Foreign capital gains tax -- -- -- -- --
Futures contracts -- -- -- -- 618,423
Written options -- (49,201) -- -- --
-------------- -------------- -------------- -------------- --------------
Net realized gain (loss) 35,675,864 4,320,793 18,044,621 25,853,287 396,683
-------------- -------------- -------------- -------------- --------------
Net change in unrealized appreciation
(depreciation) on:
Investments 38,119,794 3,144,220 36,144,129 1,318,713 (4,400,334)
Foreign currency translations -- (832) 955 -- --
Foreign capital gains tax -- -- -- -- --
Futures contracts -- -- -- 5,469 118,438
-------------- -------------- -------------- -------------- --------------
Net change in net unrealized
appreciation (depreciation) 38,119,794 3,143,388 36,145,084 1,324,182 (4,281,896)
-------------- -------------- -------------- -------------- --------------
Net Gain (Loss) 73,795,658 7,464,181 54,189,705 27,177,469 (3,885,213)
-------------- -------------- -------------- -------------- --------------
Net Increase Resulting From Operations 93,620,003 7,132,450 55,218,920 32,297,547 2,940,078
FIXED NATIONAL OREGON
INCOME MUNICIPAL MUNICIPAL DAILY
SECURITIES BOND BOND HIGH YIELD INCOME
FUND ($) FUND ($) FUND ($) FUND ($) COMPANY ($)
-------------- -------------- -------------- -------------- --------------
NETREALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS, FOREIGN CURRENCY,
FOREIGN CAPITAL GAINS TAX, FUTURES
CONTRACTS AND WRITTEN OPTIONS
Net realized gain (loss) on:
Unaffiliated investments 1,907,537 158,136 (790,713) 11,092,114 (706)
Affiliated investments -- -- -- -- --
Foreign currency transactions -- -- -- -- --
Foreign capital gains tax -- -- -- -- --
Futures contracts -- -- -- -- --
Written options -- -- -- -- --
-------------- -------------- -------------- -------------- --------------
Net realized gain (loss) 1,907,537 158,136 (790,713) 11,092,114 (706)
-------------- -------------- -------------- -------------- --------------
Net change in unrealized appreciation
(depreciation) on:
Investments (2,994,038) (215,305) (313,369) 17,645,666 --
Foreign currency translations -- -- -- -- --
Foreign capital gains tax -- -- -- -- --
Futures contracts 10,156 -- -- -- --
-------------- -------------- -------------- -------------- --------------
Net change in net unrealized
appreciation (depreciation) (2,983,882) (215,305) (313,369) 17,645,666 --
-------------- -------------- -------------- -------------- --------------
Net Gain (Loss) (1,076,345) (57,169) (1,104,082) 28,737,780 (706)
-------------- -------------- -------------- -------------- --------------
Net Increase Resulting From Operations 5,019,749 167,171 7,386,210 78,123,523 3,698,191
See Accompanying Notes to Financial Statements. | 141
STATEMENTS OF CHANGES IN NET ASSETS ____________________________________________
Columbia Funds
COMMON STOCK FUND GROWTH FUND
------------------------------- -------------------------------
(UNAUDITED) (UNAUDITED)
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
FEBRUARY 28, AUGUST 31, FEBRUARY 28, AUGUST 31,
INCREASE (DECREASE) IN NET ASSETS 2005 ($) 2004 (a)($) 2005 ($) 2004 (a)($)
-------------- -------------- -------------- --------------
OPERATIONS
Net investment income (loss) 1,592,594 1,585,012 3,829,458 (308,677)
Net realized gain on investments,
foreign currency transactions
and foreign capital gains tax 25,261,154 79,536,751 106,671,480 90,532,670
Net change in unrealized appreciation
(depreciation) on investments, foreign
currency translations and foreign
capital gains tax 1,249,477 (53,832,811) (19,909,044) (70,015,156)
-------------- -------------- -------------- --------------
Net increase (decrease) resulting
from operations 28,103,225 27,288,952 90,591,894 20,208,837
-------------- -------------- -------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS From net
investment income:
Class A (4,706) (707) (17,544) --
Class B -- -- (2,595) --
Class C -- -- (313) --
Class D -- -- (135) --
Class G -- -- (16,361) --
Class Z (2,179,613) (2,316,812) (3,275,459) --
-------------- -------------- -------------- --------------
Total distributions to shareholders (2,184,319) (2,317,519) (3,312,407) --
-------------- -------------- -------------- --------------
NET CAPITAL SHARE TRANSACTIONS (104,543,553) (146,922,763) (160,625,759) (138,965,772)
-------------- -------------- -------------- --------------
REDEMPTION FEES -- -- -- --
-------------- -------------- -------------- --------------
Net increase (decrease) in net assets (78,624,647) (121,951,330) (73,346,272) (118,756,935)
-------------- -------------- -------------- --------------
NET ASSETS
Beginning of period 306,673,388 428,624,718 810,979,317 929,736,252
End of period 228,048,741 306,673,388 737,633,045 810,979,317
-------------- -------------- -------------- --------------
Undistributed net investment income,
at end of period 182,214 773,939 512,736 --
Accumulated net investment loss,
at end of period -- -- -- (4,315)
(a) Class C shares were initially offered on October 13, 2003.
142 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
Columbia Funds
INTERNATIONAL STOCK FUND MID CAP GROWTH FUND
------------------------------- -------------------------------
(UNAUDITED) (UNAUDITED)
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
FEBRUARY 28, AUGUST 31, FEBRUARY 28, AUGUST 31,
INCREASE (DECREASE) IN NET ASSETS 2005 ($) 2004 (a)($) 2005 ($) 2004 (a)($)
-------------- -------------- -------------- --------------
OPERATIONS
Net investment income (loss) 857,067 3,691,183 (2,831,486) (7,794,468)
Net realized gain on investments,
foreign currency transactions
and foreign capital gains tax 33,549,597 29,666,692 79,039,165 136,610,324
Net change in unrealized appreciation
(depreciation) on investments, foreign
currency translations and foreign
capital gains tax 70,267,949 12,929,801 96,218,566 (178,274,861)
-------------- -------------- -------------- --------------
Net increase (decrease) resulting
from operations 104,674,613 46,287,676 172,426,245 (49,459,005)
-------------- -------------- -------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS From net
investment income:
Class A (6,207) -- -- --
Class B -- -- -- --
Class C -- -- -- --
Class D -- -- -- --
Class G -- -- -- --
Class Z (3,041,055) (1,290,808) -- --
-------------- -------------- -------------- --------------
Total distributions to shareholders (3,047,262) (1,290,808) -- --
-------------- -------------- -------------- --------------
NET CAPITAL SHARE TRANSACTIONS (17,502,846) 267,394,781 (170,003,285) (127,233,529)
-------------- -------------- -------------- --------------
REDEMPTION FEES 48,461 68,059 -- --
-------------- -------------- -------------- --------------
Net increase (decrease) in net assets 84,172,966 312,459,708 2,422,960 (176,692,534)
-------------- -------------- -------------- --------------
NET ASSETS
Beginning of period 593,791,267 281,331,559 862,481,319 1,039,173,853
End of period 677,964,233 593,791,267 864,904,279 862,481,319
-------------- -------------- -------------- --------------
Undistributed net investment income,
at end of period 84,031 2,274,226 -- --
Accumulated net investment loss,
at end of period -- -- (2,905,359) (73,873)
SMALL CAP GROWTH FUND
-------------------------------
(UNAUDITED)
SIX MONTHS YEAR
ENDED ENDED
FEBRUARY 28, AUGUST 31,
INCREASE (DECREASE) IN NET ASSETS 2005 ($) 2004 ($)
-------------- --------------
OPERATIONS
Net investment income (loss) (1,932,697) (7,090,174)
Net realized gain on investments,
foreign currency transactions
and foreign capital gains tax 94,443,764 108,746,196
Net change in unrealized appreciation
(depreciation) on investments, foreign
currency translations and foreign
capital gains tax (17,834,445) (104,998,632)
-------------- --------------
Net increase (decrease) resulting
from operations 74,676,622 (3,342,610)
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS From net
investment income:
Class A -- --
Class B -- --
Class C -- --
Class D -- --
Class G -- --
Class Z -- --
-------------- --------------
Total distributions to shareholders -- --
-------------- --------------
NET CAPITAL SHARE TRANSACTIONS (355,765,616) (91,256,656)
-------------- --------------
REDEMPTION FEES -- --
-------------- --------------
Net increase (decrease) in net assets (281,088,994) (94,599,266)
-------------- --------------
NET ASSETS
Beginning of period 543,016,307 637,615,573
End of period 261,927,313 543,016,307
-------------- --------------
Undistributed net investment income,
at end of period -- --
Accumulated net investment loss,
at end of period (1,932,697) --
See Accompanying Notes to Financial Statements. | 143
STATEMENTS OF CHANGES IN NET ASSETS ____________________________________________
Columbia Funds
REAL ESTATE EQUITY FUND TECHNOLOGY FUND
------------------------------- --------------------------------
(UNAUDITED) (UNAUDITED)
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
FEBRUARY 28, AUGUST 31, FEBRUARY 28, AUGUST 31,
INCREASE (DECREASE) IN NET ASSETS 2005 ($) 2004 (a)($) 2005 ($) 2004 (a)($)
-------------- -------------- -------------- --------------
OPERATIONS
Net investment income (loss) 19,824,345 33,479,872 (331,731) (500,247)
Net realized gain on investments,
foreign currency transactions,
futures contracts and written options 35,675,864 103,930,894 4,320,793 3,148,988
Net change in unrealized appreciation
(depreciation) on investments, foreign
currency translations and
futures contracts 38,119,794 86,151,012 3,143,388 (1,040,511)
-------------- -------------- -------------- --------------
Net increase resulting
from operations 93,620,003 223,561,778 7,132,450 1,608,230
-------------- -------------- -------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income:
Class A (905,337) (812,573) -- --
Class B (262,371) (181,510) -- --
Class C (61,673) (21,166) -- --
Class D (85,345) (96,766) -- --
Class G -- -- -- --
Class T -- -- -- --
Class Z (22,518,021) (30,549,898) -- --
From net realized gains:
Class A (3,329,894) (191,896) -- --
Class B (1,146,743) (55,846) -- --
Class C (270,229) (4,533) -- --
Class D (366,470) (37,082) -- --
Class Z (77,132,969) (8,007,605) -- --
-------------- -------------- -------------- --------------
Total distributions to shareholders (106,079,052) (39,958,875) -- --
-------------- -------------- -------------- --------------
NET CAPITAL SHARE TRANSACTIONS (37,061,566) (165,633,084) 655,640 12,887,088
-------------- -------------- -------------- --------------
Net increase (decrease) in net assets (49,520,615) 17,969,819 7,788,090 14,495,318
-------------- -------------- -------------- --------------
NET ASSETS
Beginning of period 923,323,339 905,353,520 35,794,805 21,299,487
End of period 873,802,724 923,323,339 43,582,895 35,794,805
-------------- -------------- -------------- --------------
Undistributed (overdistributed) net
investment income, at end of period (1,442,510) 2,565,892 -- --
Accumulated net investment loss,
at end of period -- -- (336,464) (4,733)
(a) Class C shares were initially offered on October 13, 2003.
144 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
Columbia Funds
STRATEGIC INVESTOR FUND BALANCED FUND
------------------------------- --------------------------------
(UNAUDITED) (UNAUDITED)
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
FEBRUARY 28, AUGUST 31, FEBRUARY 28, AUGUST 31,
INCREASE (DECREASE) IN NET ASSETS 2005 ($) 2004 (a)($) 2005 ($) 2004 (a)($)
-------------- -------------- -------------- --------------
OPERATIONS
Net investment income (loss) 1,029,215 1,155,970 5,120,078 10,289,328
Net realized gain on investments,
foreign currency transactions,
futures contracts and written options 18,044,621 32,839,116 25,853,287 82,607,475
Net change in unrealized appreciation
(depreciation) on investments, foreign
currency translations and
futures contracts 36,145,084 11,369,353 1,324,182 (57,419,638)
-------------- -------------- -------------- --------------
Net increase resulting
from operations 55,218,920 45,364,439 32,297,547 35,477,165
-------------- -------------- -------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income:
Class A (166,914) (258,188) (28,713) (23,144)
Class B -- -- (53,687) (36,893)
Class C (169) -- (5,791) (2,894)
Class D -- -- (2,436) (4,198)
Class G -- -- -- --
Class T -- -- -- --
Class Z (1,065,597) (1,487,644) (5,373,597) (10,830,515)
From net realized gains:
Class A (1,363,900) -- -- --
Class B (348,215) -- -- --
Class C (284,993) -- -- --
Class D (6,971) -- -- --
Class Z (3,186,368) -- -- --
-------------- -------------- -------------- --------------
Total distributions to shareholders (6,423,127) (1,745,832) (5,464,224) (10,897,644)
-------------- -------------- -------------- --------------
NET CAPITAL SHARE TRANSACTIONS 42,960,372 74,083,888 (136,364,326) (175,070,636)
-------------- -------------- -------------- --------------
Net increase (decrease) in net assets 91,756,165 117,702,495 (109,531,003) (150,491,115)
-------------- -------------- -------------- --------------
NET ASSETS
Beginning of period 409,370,516 291,668,021 494,700,242 645,191,357
End of period 501,126,681 409,370,516 385,169,239 494,700,242
-------------- -------------- -------------- --------------
Undistributed (overdistributed) net
investment income, at end of period 200,441 403,906 990,024 1,334,170
Accumulated net investment loss,
at end of period -- -- -- --
SHORT TERM BOND FUND
-------------------------------
(UNAUDITED)
SIX MONTHS YEAR
ENDED ENDED
FEBRUARY 28, AUGUST 31,
INCREASE (DECREASE) IN NET ASSETS 2005 ($) 2004 (a)($)
-------------- --------------
OPERATIONS
Net investment income (loss) 6,825,291 11,677,205
Net realized gain on investments,
foreign currency transactions,
futures contracts and written options 396,683 273,948
Net change in unrealized appreciation
(depreciation) on investments, foreign
currency translations and
futures contracts (4,281,896) 671,338
-------------- --------------
Net increase resulting
from operations 2,940,078 12,622,491
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income:
Class A (322,131) (587,965)
Class B (203,816) (312,592)
Class C (37,191) (32,292)
Class D (98,629) (283,218)
Class G (9,208) (18,591)
Class T (260,835) (518,577)
Class Z (5,902,430) (9,814,113)
From net realized gains:
Class A -- --
Class B -- --
Class C -- --
Class D -- --
Class Z -- --
-------------- --------------
Total distributions to shareholders (6,834,240) (11,567,348)
-------------- --------------
NET CAPITAL SHARE TRANSACTIONS (28,452,047) (24,733,033)
-------------- --------------
Net increase (decrease) in net assets (32,346,209) (23,677,890)
-------------- --------------
NET ASSETS
Beginning of period 525,498,187 549,176,077
End of period 493,151,978 525,498,187
-------------- --------------
Undistributed (overdistributed) net
investment income, at end of period 284,936 293,885
Accumulated net investment loss,
at end of period -- --
(a) Class C shares were initially offered on October 13, 2003.
See Accompanying Notes to Financial Statements. | 145
STATEMENTS OF CHANGES IN NET ASSETS ____________________________________________
Columbia Funds
FIXED INCOME NATIONAL MUNICIPAL
SECURITIES FUND BOND FUND
------------------------------- --------------------------------
(UNAUDITED) (UNAUDITED)
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
FEBRUARY 28, AUGUST 31, FEBRUARY 28, AUGUST 31,
INCREASE (DECREASE) IN NET ASSETS 2005 ($) 2004 (a)($) 2005 ($) 2004 (a)($)
-------------- -------------- -------------- --------------
OPERATIONS
Net investment income 6,096,094 16,516,684 224,340 543,600
Net realized gain (loss) on
investments and futures contracts 1,907,537 6,873,389 158,136 128,356
Net change in unrealized
appreciation (depreciation)
on investments and
futures contracts (2,983,882) (509,297) (215,305) 251,062
-------------- -------------- -------------- --------------
Net increase resulting
from operations 5,019,749 22,880,776 167,171 923,018
-------------- -------------- -------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income:
Class A (228,247) (352,163) (30,924) (30,673)
Class B (65,008) (142,805) (8,680) (19,451)
Class C (3,385) (3,354) (4,950) (17,369)
Class D (26,783) (76,542) (4,930) (14,134)
Class Z (6,149,920) (16,812,198) (174,488) (460,894)
From net realized gains:
Class A (126,358) -- (18,003) (6,106)
Class B (41,709) -- (6,522) (5,641)
Class C (2,300) -- (3,295) (6,127)
Class D (16,379) -- (2,764) (3,786)
Class Z (3,091,101) -- (94,442) (98,282)
-------------- -------------- -------------- --------------
Total distributions to shareholders (9,751,190) (17,387,062) (348,998) (662,463)
-------------- -------------- -------------- --------------
NET CAPITAL SHARE TRANSACTIONS (53,483,550) (184,814,748) (3,677,644) (1,232,294)
-------------- -------------- -------------- --------------
Net increase (decrease) in net assets (58,214,991) (179,321,034) (3,859,471) (971,739)
-------------- -------------- -------------- --------------
NET ASSETS
Beginning of period 341,269,563 520,590,597 14,811,803 15,783,542
End of period 283,054,572 341,269,563 10,952,332 14,811,803
-------------- -------------- -------------- --------------
Undistributed (overdistributed) net
investment income, at end of period (1,144,058) (766,809) 5,407 5,039
(a) Class C shares were initially offered on October 13, 2003.
146 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
Columbia Funds
OREGON MUNICIPAL
BOND FUND HIGH YIELD FUND
------------------------------- --------------------------------
(UNAUDITED) (UNAUDITED)
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
FEBRUARY 28, AUGUST 31, FEBRUARY 28, AUGUST 31,
INCREASE (DECREASE) IN NET ASSETS 2005 ($) 2004 (a)($) 2005 ($) 2004 (a)($)
-------------- -------------- -------------- --------------
OPERATIONS
Net investment income 8,490,292 18,807,129 49,385,743 102,105,979
Net realized gain (loss) on
investments and futures contracts (790,713) 3,418,754 11,092,114 23,256,561
Net change in unrealized
appreciation (depreciation)
on investments and
futures contracts (313,369) 9,460,520 17,645,666 23,594,415
-------------- -------------- -------------- --------------
Net increase resulting
from operations 7,386,210 31,686,403 78,123,523 148,956,955
-------------- -------------- -------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income:
Class A (70,171) (105,796) (10,221,155) (16,842,377)
Class B (17,759) (36,225) (2,672,799) (5,543,127)
Class C (5,754) (3,971) (585,279) (651,730)
Class D (12,904) (26,303) (2,145,953) (5,747,649)
Class Z (8,349,512) (18,620,689) (37,824,156) (81,901,552)
From net realized gains:
Class A (11,016) (28,392) -- --
Class B (3,546) (15,169) -- --
Class C (1,075) (702) -- --
Class D (2,262) (9,045) -- --
Class Z (1,212,920) (5,411,625) -- --
-------------- -------------- -------------- --------------
Total distributions to shareholders (9,686,919) (24,257,917) (53,449,342) (110,686,435)
-------------- -------------- -------------- --------------
NET CAPITAL SHARE TRANSACTIONS (12,432,078) (56,244,778) 14,220,062 108,928,738
-------------- -------------- -------------- --------------
Net increase (decrease) in net assets (14,732,787) (48,816,292) 38,894,243 147,199,258
-------------- -------------- -------------- --------------
NET ASSETS
Beginning of period 440,447,980 489,264,272 1,731,314,320 1,584,115,062
End of period 425,715,193 440,447,980 1,770,208,563 1,731,314,320
-------------- -------------- -------------- --------------
Undistributed (overdistributed) net
investment income, at end of period 163,207 129,015 (12,628,636) (8,565,037)
DAILY INCOME COMPANY
-------------------------------
(UNAUDITED)
SIX MONTHS YEAR
ENDED ENDED
FEBRUARY 28, AUGUST 31,
INCREASE (DECREASE) IN NET ASSETS 2005 ($) 2004 (a)($)
-------------- --------------
OPERATIONS
Net investment income 3,698,897 2,925,450
Net realized gain (loss) on
investments and futures contracts (706) --
Net change in unrealized
appreciation (depreciation)
on investments and
futures contracts -- --
-------------- --------------
from operations 3,698,191 2,925,450
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income:
Class A -- --
Class B -- --
Class C -- --
Class D -- --
Class Z (3,698,897) (2,925,450)
From net realized gains:
Class A -- --
Class B -- --
Class C -- --
Class D -- --
Class Z -- --
-------------- --------------
Total distributions to shareholders (3,698,897) (2,925,450)
-------------- --------------
NET CAPITAL SHARE TRANSACTIONS (114,903,821) (237,050,335)
-------------- --------------
Net increase (decrease) in net assets (114,904,527) (237,050,335)
-------------- --------------
NET ASSETS
Beginning of period 661,113,546 898,163,881
End of period 546,209,019 661,113,546
-------------- --------------
Undistributed (overdistributed) net
investment income, at end of period -- --
See Accompanying Notes to Financial Statements. | 147
STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY ___________________
Columbia Funds
COMMON STOCK FUND
-------------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 2005 AUGUST 31, 2004 (a)
------------------------------- --------------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($)
-------------- -------------- -------------- --------------
CLASS A
Subscriptions 5,019 92,982 64,115 1,177,263
Distributions reinvested 224 4,450 36 655
Redemptions (31,025) (596,132) (10,766) (202,298)
-------------- -------------- -------------- --------------
Net increase (decrease) (25,782) (498,700) 53,385 975,620
CLASS B
Subscriptions 2,618 47,991 107,474 1,972,354
Distributions reinvested -- -- -- --
Redemptions (10,373) (198,933) (28,529) (521,700)
-------------- -------------- -------------- --------------
Net increase (decrease) (7,755) (150,942) 78,945 1,450,654
CLASS C
Subscriptions 1,196 21,847 9,537 173,802
Distributions reinvested -- -- -- --
Redemptions (106) (2,037) (8,096) (153,076)
-------------- -------------- -------------- --------------
Net increase 1,090 19,810 1,441 20,726
CLASS D
Subscriptions -- -- 1,445 24,548
Distributions reinvested -- -- -- --
Redemptions (925) (17,048) (808) (14,636)
-------------- -------------- -------------- --------------
Net increase (decrease) (925) (17,048) 637 9,912
CLASS G
Subscriptions -- -- -- --
Distributions reinvested -- -- -- --
Redemptions -- -- -- --
-------------- -------------- -------------- --------------
Net decrease -- -- -- --
CLASS Z
Subscriptions 512,882 9,869,852 3,255,220 60,420,176
Distributions reinvested 105,793 2,107,389 124,008 2,261,915
Redemptions (5,982,347) (115,873,914) (11,416,152) (212,061,766)
-------------- -------------- -------------- --------------
Net decrease (5,363,672) (103,896,673) (8,036,924) (149,379,675)
(a) Class C shares were initially offered on October 13, 2003.
148 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
Columbia Funds
GROWTH FUND
-------------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 2005 AUGUST 31, 2004 (a)
------------------------------- --------------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($)
-------------- -------------- -------------- --------------
CLASS A
Subscriptions 9,478 243,032 60,274 1,566,301
Distributions reinvested 605 16,954 -- --
Redemptions (22,524) (615,629) (44,945) (1,160,956)
-------------- -------------- -------------- --------------
Net increase (decrease) (12,441) (355,643) 15,329 405,345
CLASS B
Subscriptions 7,927 206,340 68,478 1,760,207
Distributions reinvested 82 2,272 -- --
Redemptions (12,383) (327,172) (9,246) (238,352)
-------------- -------------- -------------- --------------
Net increase (decrease) (4,374) (118,560) 59,232 1,521,855
CLASS C
Subscriptions 3,690 94,633 12,996 335,297
Distributions reinvested 7 204 -- --
Redemptions (1,027) (27,174) (4,898) (126,885)
-------------- -------------- -------------- --------------
Net increase 2,670 67,663 8,098 208,412
CLASS D
Subscriptions 134 3,520 4,931 120,807
Distributions reinvested 4 115 -- --
Redemptions (2,546) (64,849) (10,160) (252,432)
-------------- -------------- -------------- --------------
Net increase (decrease) (2,408) (61,214) (5,229) (131,625)
CLASS G
Subscriptions 724 18,241 4,481 115,330
Distributions reinvested 579 16,035 -- --
Redemptions (42,070) (1,120,099) (81,959) (2,115,829)
-------------- -------------- -------------- --------------
Net decrease (40,767) (1,085,823) (77,478) (2,000,499)
CLASS Z
Subscriptions 495,182 13,171,365 4,176,203 108,867,109
Distributions reinvested 98,174 2,769,477 -- --
Redemptions (6,459,859) (175,013,024) (9,500,046) (247,836,369)
-------------- -------------- -------------- --------------
Net decrease (5,866,503) (159,072,182) (5,323,843) (138,969,260)
See Accompanying Notes to Financial Statements. | 149
STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY ___________________
Columbia Funds
INTERNATIONAL STOCK FUND
-------------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 2005 AUGUST 31, 2004 (a)
------------------------------- --------------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($)
-------------- -------------- -------------- --------------
CLASS A
Subscriptions 125,691 1,805,237 373,131 4,764,290
Distributions reinvested 376 5,549 -- --
Redemptions (169,101) (2,420,867) (433,072) (5,595,729)
-------------- -------------- -------------- --------------
Net increase (decrease) (43,034) (610,081) (59,941) (831,439)
CLASS B
Subscriptions 99,181 1,400,095 257,984 3,329,492
Redemptions (142,375) (1,998,720) (378,452) (4,865,635)
-------------- -------------- -------------- --------------
Net increase (decrease) (43,194) (598,625) (120,468) (1,536,143)
CLASS C
Subscriptions 9,833 140,304 77,717 997,912
Redemptions (17,661) (254,140) (28,604) (374,843)
-------------- -------------- -------------- --------------
Net increase (decrease) (7,828) (113,836) 49,113 623,069
CLASS D
Subscriptions 1,838 25,592 8,022 101,833
Redemptions (9,379) (133,270) (7,016) (89,891)
-------------- -------------- -------------- --------------
Net increase (decrease) (7,541) (107,678) 1,006 11,942
CLASS G
Subscriptions -- -- -- --
Redemptions -- -- -- --
-------------- -------------- -------------- --------------
Net decrease -- -- -- --
CLASS T
Subscriptions -- -- -- --
Redemptions -- -- -- --
-------------- -------------- -------------- --------------
Net decrease -- -- -- --
CLASS Z
Subscriptions 8,038,237 115,442,679 26,956,809 352,679,563
Distributions reinvested 61,891 916,609 44,157 563,444
Redemptions (9,128,072) (132,431,914) (6,345,590) (84,115,655)
-------------- -------------- -------------- --------------
Net increase (decrease) (1,027,944) (16,072,626) 20,655,376 269,127,352
(a) Class C shares were initially offered on October 13, 2003.
150 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
Columbia Funds
MID CAP GROWTH FUND
-------------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 2005 AUGUST 31, 2004 (a)
------------------------------- --------------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($)
-------------- -------------- -------------- --------------
CLASS A
Subscriptions 59,205 1,133,511 291,660 5,434,656
Distributions reinvested -- -- -- --
Redemptions (50,760) (961,410) (280,956) (5,162,016)
-------------- -------------- -------------- --------------
Net increase (decrease) 8,445 172,101 10,704 272,640
CLASS B
Subscriptions 25,765 487,981 125,421 2,339,336
Redemptions (36,647) (678,971) (58,231) (1,066,216)
-------------- -------------- -------------- --------------
Net increase (decrease) (10,882) (190,990) 67,190 1,273,120
CLASS C
Subscriptions 5,453 101,981 35,421 677,522
Redemptions (7,345) (140,754) (5,599) (102,551)
-------------- -------------- -------------- --------------
Net increase (decrease) (1,892) (38,773) 29,822 574,971
CLASS D
Subscriptions 404 7,563 3,419 61,969
Redemptions (9,528) (181,534) (8,721) (155,931)
-------------- -------------- -------------- --------------
Net increase (decrease) (9,124) (173,971) (5,302) (93,962)
CLASS G
Subscriptions 456 8,662 1,362 25,257
Redemptions (2,778) (50,715) (7,466) (136,718)
-------------- -------------- -------------- --------------
Net decrease (2,322) (42,053) (6,104) (111,461)
CLASS T
Subscriptions 7,263 142,102 26,462 498,501
Redemptions (117,655) (2,232,891) (195,050) (3,653,424)
-------------- -------------- -------------- --------------
Net decrease (110,392) (2,090,789) (168,588) (3,154,923)
CLASS Z
Subscriptions 1,876,048 36,148,449 6,071,998 114,038,896
Distributions reinvested -- -- -- --
Redemptions (10,491,567) (203,787,259) (12,860,265) (240,032,810)
-------------- -------------- -------------- --------------
Net increase (decrease) (8,615,519) (167,638,810) (6,788,267) (125,993,914)
See Accompanying Notes to Financial Statements. | 151
STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY ___________________
Columbia Funds
SMALL CAP GROWTH FUND
------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 2005 AUGUST 31, 2004
---------------------------- ----------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($)
------------ ------------ ------------ ------------
CLASS A
Subscriptions -- -- -- --
Distributions reinvested -- -- -- --
Redemptions -- -- -- --
------------ ------------ ------------ ------------
Net increase -- -- -- --
CLASS B
Subscriptions -- -- -- --
Distributions reinvested -- -- -- --
Redemptions -- -- -- --
------------ ------------ ------------ ------------
Net increase -- -- -- --
CLASS C
Subscriptions -- -- -- --
Distributions reinvested -- -- -- --
Redemptions -- -- -- --
------------ ------------ ------------ ------------
Net increase -- -- -- --
CLASS D
Subscriptions -- -- -- --
Distributions reinvested -- -- -- --
Redemptions -- -- -- --
------------ ------------ ------------ ------------
Net increase (decrease) -- -- -- --
CLASS Z
Subscriptions 1,233,156 29,157,984 10,261,845 240,997,658
Distributions reinvested -- -- -- --
Redemptions (16,274,806) (384,923,600) (14,285,853) (332,254,314)
------------ ------------ ------------ ------------
Net decrease (15,041,650) (355,765,616) (4,024,008) (91,256,656)
(a) Class C shares were initially offered on October 13, 2003.
152 | See Accompanying Notes to Financial Statements.
STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY ___________________
Columbia Funds
REAL ESTATE EQUITY FUND
------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 2005 AUGUST 31, 2004 (a)
---------------------------- ----------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($)
------------ ------------ ------------ ------------
CLASS A
Subscriptions 464,223 12,200,896 1,626,030 36,784,752
Distributions reinvested 146,867 3,850,743 38,787 907,726
Redemptions (290,077) (7,601,613) (974,687) (22,619,991)
------------ ------------ ------------ ------------
Net increase 321,013 8,450,026 690,130 15,072,487
CLASS B
Subscriptions 109,176 2,898,128 294,726 6,857,490
Distributions reinvested 40,240 1,057,230 7,307 170,161
Redemptions (51,944) (1,364,081) (90,228) (2,141,291)
------------ ------------ ------------ ------------
Net increase 97,472 2,591,277 211,805 4,886,360
CLASS C
Subscriptions 52,107 1,362,092 106,764 2,516,283
Distributions reinvested 11,413 299,769 954 22,917
Redemptions (7,342) (192,487) (13,730) (323,033)
------------ ------------ ------------ ------------
Net increase 56,178 1,469,374 93,988 2,216,167
CLASS D
Subscriptions 3,349 94,453 45,881 1,008,069
Distributions reinvested 13,975 367,181 4,705 107,738
Redemptions (6,262) (169,333) (56,804) (1,309,816)
------------ ------------ ------------ ------------
Net increase (decrease) 11,062 292,301 (6,218) (194,009)
CLASS Z
Subscriptions 3,955,555 103,839,262 15,372,264 353,978,184
Distributions reinvested 2,913,634 76,364,754 1,287,979 29,504,145
Redemptions (8,795,867) (230,068,560) (24,582,645) (571,096,418)
------------ ------------ ------------ ------------
Net decrease (1,926,678) (49,864,544) (7,922,402) (187,614,089)
See Accompanying Notes to Financial Statements. | 153
STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY ___________________
Columbia Funds
TECHNOLOGY FUND
------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 2005 AUGUST 31, 2004 (a)
---------------------------- ----------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($)
------------ ------------ ------------ ------------
CLASS A
Subscriptions 596,406 4,666,080 618,899 4,301,075
Distributions reinvested -- -- -- --
Redemptions (98,564) (762,662) (249,120) (1,754,239)
------------ ------------ ------------ ------------
Net increase 497,842 3,903,418 369,779 2,546,836
CLASS B
Subscriptions 132,518 1,022,052 504,341 3,487,212
Distributions reinvested -- -- -- --
Redemptions (107,185) (815,672) (373,299) (2,552,196)
------------ ------------ ------------ ------------
Net increase 25,333 206,380 131,042 935,016
CLASS C
Subscriptions 118,744 927,392 92,300 649,419
Distributions reinvested -- -- -- --
Redemptions (14,039) (100,472) (16,223) (116,780)
------------ ------------ ------------ ------------
Net increase 104,705 826,920 76,077 532,639
CLASS D
Subscriptions 120 875 7,740 48,269
Distributions reinvested -- -- -- --
Redemptions (660) (5,097) (6,929) (49,293)
------------ ------------ ------------ ------------
Net increase (decrease) (540) (4,222) 811 (1,024)
CLASS Z
Subscriptions 1,170,340 9,143,823 5,040,767 35,087,433
Distributions reinvested -- -- -- --
Redemptions (1,730,807) (13,420,679) (3,732,749) (26,213,812)
------------ ------------ ------------ ------------
Net increase (decrease) (560,467) (4,276,856) 1,308,018 8,873,621
(a) Class C shares were initially offered on October 13, 2003.
154 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
Columbia Funds
STRATEGIC INVESTOR FUND
------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 2005 AUGUST 31, 2004 (a)
---------------------------- ----------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($)
------------ ------------ ------------ ------------
CLASS A
Subscriptions 1,904,164 37,240,356 2,239,525 40,978,091
Distributions reinvested 73,071 1,459,945 13,874 239,722
Redemptions (385,548) (7,580,929) (602,009) (10,711,424)
------------ ------------ ------------ ------------
Net increase 1,591,687 31,119,372 1,651,390 30,506,389
CLASS B
Subscriptions 760,800 14,694,030 1,117,349 20,292,528
Distributions reinvested 15,739 310,686 -- --
Redemptions (96,725) (1,861,797) (117,595) (2,110,515)
------------ ------------ ------------ ------------
Net increase 679,814 13,142,919 999,754 18,182,013
CLASS C
Subscriptions 713,119 13,661,979 842,913 15,346,291
Distributions reinvested 12,556 247,992 -- --
Redemptions (48,339) (942,678) (27,681) (499,929)
------------ ------------ ------------ ------------
Net increase 677,336 12,967,293 815,232 14,846,362
CLASS D
Subscriptions 214 4,100 1,168 20,852
Distributions reinvested 318 6,281 -- --
Redemptions (6,493) (124,773) (7,595) (136,369)
------------ ------------ ------------ ------------
Net increase (decrease) (5,961) (114,392) (6,427) (115,517)
CLASS Z
Subscriptions 2,420,214 47,656,555 5,588,367 100,270,955
Distributions reinvested 206,021 4,120,329 85,074 1,470,072
Redemptions (3,354,496) (65,931,704) (5,130,203) (91,076,386)
------------ ------------ ------------ ------------
Net increase (decrease) (728,261) (14,154,820) 543,238 10,664,641
See Accompanying Notes to Financial Statements. | 155
STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY ___________________
Columbia Funds
BALANCED FUND
------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 2005 AUGUST 31, 2004 (a)
---------------------------- ----------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($)
------------ ------------ ------------ ------------
CLASS A
Subscriptions 41,594 864,375 110,630 2,249,214
Distributions reinvested 1,251 25,845 1,059 21,473
Redemptions (34,357) (711,464) (16,827) (342,215)
------------ ------------ ------------ ------------
Net increase (decrease) 8,488 178,756 94,862 1,928,472
CLASS B
Subscriptions 53,436 1,099,754 254,329 5,127,102
Distributions reinvested 2,204 45,745 1,523 30,867
Redemptions (49,590) (1,015,139) (63,198) (1,271,030)
------------ ------------ ------------ ------------
Net increase (decrease) 6,050 130,360 192,654 3,886,939
CLASS C
Subscriptions 7,685 158,503 41,424 839,284
Distributions reinvested 226 4,713 136 2,777
Redemptions (4,608) (95,273) (4,752) (94,839)
------------ ------------ ------------ ------------
Net increase 3,303 67,943 36,808 747,222
CLASS D
Subscriptions 30 622 7,349 141,785
Distributions reinvested 110 2,275 194 3,858
Redemptions (2,675) (53,814) (29,534) (593,961)
------------ ------------ ------------ ------------
Net decrease (2,535) (50,917) (21,991) (448,318)
CLASS G
Subscriptions -- -- -- --
Distributions reinvested -- -- -- --
Redemptions -- -- -- --
------------ ------------ ------------ ------------
Net decrease -- -- -- --
CLASS T
Subscriptions -- -- -- --
Distributions reinvested -- -- -- --
Redemptions -- -- -- --
------------ ------------ ------------ ------------
Net decrease -- -- -- --
CLASS Z
Subscriptions 1,151,535 23,667,230 3,762,668 75,662,935
Distributions reinvested 255,090 5,252,140 535,817 10,708,630
Redemptions (8,012,294) (165,609,838) (13,282,884) (267,556,516)
------------ ------------ ------------ ------------
Net decrease (6,605,669) (136,690,468) (8,984,399) (181,184,951)
(a) Class C shares were initially offered on October 13, 2003.
156 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
Columbia Funds
SHORT TERM BOND FUND
------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 2005 AUGUST 31, 2004 (a)
---------------------------- ----------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($)
------------ ------------ ------------ ------------
CLASS A
Subscriptions 445,385 3,839,593 2,363,890 20,470,127
Distributions reinvested 30,443 262,102 55,629 481,353
Redemptions (924,013) (7,966,221) (3,483,902) (30,155,847)
------------ ------------ ------------ ------------
Net increase (decrease) (448,185) (3,864,526) (1,064,383) (9,204,367)
CLASS B
Subscriptions 274,069 2,362,441 1,020,370 8,811,024
Distributions reinvested 18,846 162,242 28,513 246,689
Redemptions (622,351) (5,363,653) (1,268,886) (10,976,173)
------------ ------------ ------------ ------------
Net increase (decrease) (329,436) (2,838,970) (220,003) (1,918,460)
CLASS C
Subscriptions 104,530 901,678 446,619 3,866,656
Distributions reinvested 3,414 29,394 3,243 28,007
Redemptions (106,031) (914,556) (87,871) (758,972)
------------ ------------ ------------ ------------
Net increase 1,913 16,516 361,991 3,135,691
CLASS D
Subscriptions 25,625 220,738 195,345 1,693,396
Distributions reinvested 9,556 82,277 25,582 221,473
Redemptions (284,050) (2,449,498) (1,232,826) (10,651,859)
------------ ------------ ------------ ------------
Net decrease (248,869) (2,146,483) (1,011,899) (8,736,990)
CLASS G
Subscriptions 42 360 584 5,059
Distributions reinvested 1,048 9,026 2,071 17,922
Redemptions (20,568) (177,322) (67,631) (585,284)
------------ ------------ ------------ ------------
Net decrease (19,478) (167,936) (64,976) (562,303)
CLASS T
Subscriptions 24,195 208,880 49,312 426,415
Distributions reinvested 26,447 227,679 51,571 446,329
Redemptions (229,530) (1,978,150) (926,216) (7,999,639)
------------ ------------ ------------ ------------
Net decrease (178,888) (1,541,591) (825,333) (7,126,895)
CLASS Z
Subscriptions 10,657,099 91,849,851 27,479,655 237,930,286
Distributions reinvested 200,798 1,728,910 389,324 3,368,689
Redemptions (12,942,397) (111,487,818) (27,927,420) (241,618,684)
------------ ------------ ------------ ------------
Net decrease (2,084,500) (17,909,057) (58,441) (319,709)
See Accompanying Notes to Financial Statements. | 157
STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY ___________________
Columbia Funds
FIXED INCOME SECURITIES FUND
------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 2005 AUGUST 31, 2004 (a)
---------------------------- ----------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($)
------------ ------------ ------------ ------------
CLASS A
Subscriptions 281,863 3,792,599 428,638 5,773,085
Distributions reinvested 24,644 330,221 23,362 314,190
Redemptions (182,827) (2,450,140) (220,544) (2,972,153)
------------ ------------ ------------ ------------
Net increase 123,680 1,672,680 231,456 3,115,122
CLASS B
Subscriptions 16,459 220,539 118,362 1,602,183
Distributions reinvested 6,591 88,328 8,019 107,908
Redemptions (41,136) (553,271) (135,602) (1,820,197)
------------ ------------ ------------ ------------
Net increase (decrease) (18,086) (244,404) (9,221) (110,106)
CLASS C
Subscriptions 7,457 100,512 17,216 232,958
Distributions reinvested 332 4,452 209 2,809
Redemptions (2,871) (38,533) (5,682) (76,813)
------------ ------------ ------------ ------------
Net increase (decrease) 4,918 66,431 11,743 158,954
CLASS D
Subscriptions 962 12,850 2,595 34,899
Distributions reinvested 1,878 25,171 3,148 42,410
Redemptions (19,577) (263,015) (73,680) (981,085)
------------ ------------ ------------ ------------
Net decrease (16,737) (224,994) (67,937) (903,776)
CLASS Z
Subscriptions 1,597,478 21,480,088 5,273,336 71,044,891
Distributions reinvested 635,883 8,524,750 1,165,214 15,695,834
Redemptions (6,314,865) (84,758,101) (20,329,678) (273,815,667)
------------ ------------ ------------ ------------
Net decrease (4,081,504) (54,753,263) (13,891,128) (187,074,942)
(a) Class C shares were initially offered on October 13, 2003.
158 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
Columbia Funds
NATIONAL MUNICIPAL BOND FUND
------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 2005 AUGUST 31, 2004 (a)
---------------------------- ----------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($)
------------ ------------ ------------ ------------
CLASS A
Subscriptions 163,379 1,678,097 99,258 1,025,824
Distributions reinvested 2,844 29,070 2,972 30,460
Redemptions (140,607) (1,440,260) (16,680) (167,045)
------------ ------------ ------------ ------------
Net increase 25,616 266,907 85,550 889,239
CLASS B
Subscriptions 8,632 88,695 27,156 280,129
Distributions reinvested 976 9,964 1,592 16,368
Redemptions (8,103) (83,473) (13,453) (138,405)
------------ ------------ ------------ ------------
Net increase (decrease) 1,505 15,186 15,295 158,092
CLASS C
Subscriptions 335 3,462 79,238 814,330
Distributions reinvested 379 3,865 1,646 16,916
Redemptions (996) (10,176) (45,604) (462,894)
------------ ------------ ------------ ------------
Net increase (decrease) (282) (2,849) 35,280 368,352
CLASS D
Subscriptions 4 45 4,795 49,669
Distributions reinvested 482 4,916 831 8,544
Redemptions (16,976) (174,039) (7,399) (75,050)
------------ ------------ ------------ ------------
Net decrease (16,490) (169,078) (1,773) (16,837)
CLASS Z
Subscriptions 128,058 1,315,652 708,002 7,280,818
Distributions reinvested 19,231 196,503 45,767 470,822
Redemptions (516,864) (5,299,965) (1,011,506) (10,382,780)
------------ ------------ ------------ ------------
Net decrease (369,575) (3,787,810) (257,737) (2,631,140)
See Accompanying Notes to Financial Statements. | 159
STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY ___________________
Columbia Funds
OREGON MUNICIPAL BOND FUND
------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 2005 AUGUST 31, 2004 (a)
---------------------------- ----------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($)
------------ ------------ ------------ ------------
CLASS A
Subscriptions 30,816 383,230 170,654 2,095,832
Distributions reinvested 3,381 42,026 6,574 81,626
Redemptions (6,751) (84,126) (56,206) (688,255)
------------ ------------ ------------ ------------
Net increase 27,446 341,130 121,022 1,489,203
CLASS B
Subscriptions 6,843 85,045 35,938 446,223
Distributions reinvested 932 11,579 2,314 28,769
Redemptions (2,763) (34,357) (24,250) (302,376)
------------ ------------ ------------ ------------
Net increase (decrease) 5,012 62,267 14,002 172,616
CLASS C
Subscriptions 11,613 144,882 22,201 277,202
Distributions reinvested 287 3,560 227 2,808
Redemptions (1,811) (22,535) (84) (1,027)
------------ ------------ ------------ ------------
Net increase 10,089 125,907 22,344 278,983
CLASS D
Subscriptions -- -- 12,020 148,564
Distributions reinvested 841 10,449 2,010 24,984
Redemptions (1,262) (15,700) (7,665) (95,185)
------------ ------------ ------------ ------------
Net increase (decrease) (421) (5,251) 6,365 78,363
CLASS Z
Subscriptions 1,506,444 18,757,235 3,104,735 38,548,478
Distributions reinvested 588,726 7,320,118 1,524,565 18,948,258
Redemptions (3,134,594) (39,033,484) (9,361,486) (115,760,679)
------------ ------------ ------------ ------------
Net increase (decrease) (1,039,424) (12,956,131) (4,732,186) (58,263,943)
(a) Class C shares were initially offered on October 13, 2003.
160 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
Columbia Funds
HIGH YIELD FUND
------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 2005 AUGUST 31, 2004 (a)
---------------------------- ----------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($)
------------ ------------ ------------ ------------
CLASS A
Subscriptions 7,689,986 67,713,325 26,673,537 230,909,589
Distributions reinvested 1,028,495 9,056,105 1,708,530 14,793,686
Redemptions (7,567,598) (66,537,095) (12,505,103) (108,035,805)
------------ ------------ ------------ ------------
Net increase 1,150,883 10,232,335 15,876,964 137,667,470
CLASS B
Subscriptions 542,602 4,776,180 3,063,956 26,566,619
Distributions reinvested 196,946 1,734,163 405,219 3,509,869
Redemptions (1,005,051) (8,844,126) (2,325,212) (20,086,982)
------------ ------------ ------------ ------------
Net increase (decrease) (265,503) (2,333,783) 1,143,963 9,989,506
CLASS C
Subscriptions 560,120 4,936,171 2,692,176 23,449,925
Distributions reinvested 36,769 323,756 40,122 346,368
Redemptions (331,537) (2,920,671) (416,181) (3,598,943)
------------ ------------ ------------ ------------
Net increase 265,352 2,339,256 2,316,117 20,197,350
CLASS D
Subscriptions 104,805 923,070 1,187,729 10,250,062
Distributions reinvested 142,094 1,251,256 379,149 3,285,854
Redemptions (1,873,050) (16,485,758) (3,773,325) (32,589,124)
------------ ------------ ------------ ------------
Net increase (decrease) (1,626,151) (14,311,432) (2,206,447) (19,053,208)
CLASS Z
Subscriptions 19,981,333 175,979,971 71,607,065 621,117,899
Distributions reinvested 1,919,929 16,905,677 5,291,757 45,884,199
Redemptions (19,837,117) (174,591,962) (81,442,188) (706,874,478)
------------ ------------ ------------ ------------
Net increase (decrease) 2,064,145 18,293,686 (4,543,366) (39,872,380)
See Accompanying Notes to Financial Statements. | 161
STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY ___________________
Columbia Funds
DAILY INCOME COMPANY
------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 2005 AUGUST 31, 2004
---------------------------- ----------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($)
------------ ------------ ------------ ------------
CLASS Z
Subscriptions 189,906,515 189,906,516 522,717,108 522,717,108
Distributions reinvested 3,436,414 3,436,414 2,669,462 2,669,462
Redemptions (308,246,750) (308,246,751) (762,436,905) (762,436,905)
------------ ------------ ------------ ------------
Net decrease (114,903,821) (114,903,821) (237,050,335) (237,050,335)
162 | See Accompanying Notes to Financial Statements.
NOTES TO FINANCIAL STATEMENTS __________________________________________________
February 28, 2005 (Unaudited) Columbia Funds
NOTE 1. ORGANIZATION
The Columbia Funds are registered under the Investment Company Act of 1940 (the
"1940 Act"), as amended, as open-end management investment companies.
Information presented in these financial statements pertains to the following
Funds (individually referred to as a "Fund", collectively referred to as the
"Funds"):
Columbia Common Stock Fund
Columbia Growth Fund
Columbia International Stock Fund
Columbia Mid Cap Growth Fund
Columbia Small Cap Growth Fund
Columbia Real Estate Equity Fund
Columbia Technology Fund
Columbia Strategic Investor Fund
Columbia Balanced Fund
Columbia Short Term Bond Fund
Columbia Fixed Income Securities Fund
Columbia National Municipal Bond Fund
Columbia Oregon Municipal Bond Fund
Columbia High Yield Fund
Columbia Daily Income Company
All Funds are diversified except for the Columbia Real Estate Equity Fund,
Columbia Technology Fund and Columbia Oregon Municipal Bond Fund, which are
non-diversified.
INVESTMENT GOALS
The Columbia Common Stock Fund seeks capital appreciation by investing primarily
in common stocks of large capitalization, well-established companies. The
Columbia Growth Fund seeks capital appreciation by investing in stocks of
companies expected to experience long-term, above average earnings growth. The
Columbia International Stock Fund seeks long-term capital appreciation by
investing in stocks issued by companies from at least three countries outside
the United States. The Columbia Mid Cap Growth Fund seeks significant capital
appreciation by investing in stocks of companies with a market capitalization,
at the time of initial purchase, equal to or less than the largest stock in the
Russell Midcap Index. The Columbia Small Cap Growth Fund seeks capital
appreciation by investing in stocks of companies with a market capitalization,
at the time of initial purchase, equal to or less than the largest stock in the
S&P SmallCap 600 Index. The Columbia Real Estate Equity Fund seeks capital
appreciation and above-average income by investing in stocks of companies
principally engaged in the real estate industry, including real estate
investment trusts (REITs). The Columbia Technology Fund seeks capital
appreciation by investing in stocks of technology companies that may benefit
from technological improvements, advancements or developments. The Columbia
Strategic Investor Fund seeks long-term growth of capital by using a "value"
approach to investing primarily in common stocks. The Columbia Balanced Fund
seeks high total return by investing in common stocks and debt securities. The
Columbia Short Term Bond Fund seeks a high level of current income consistent
with a high degree of principal stability by investing primarily in short-term,
investment-grade, fixed income securities. The Columbia Fixed Income Securities
Fund seeks a high level of income by investing in a broad range of debt
securities with intermediate to long-term maturities. The Columbia National
Municipal Bond Fund seeks a high level of income exempt from federal income tax
by investing primarily in municipal securities issued by state and local
governments, their agencies and authorities, as well as the District of Columbia
and U.S. territories and possessions. The Columbia Oregon Municipal Bond Fund
seeks a high level of income exempt from federal and Oregon income tax by
investing primarily in municipal securities issued by the state of Oregon. The
Columbia High Yield Fund seeks a high level of income, with capital appreciation
as a secondary goal, by investing in non-investment-grade, corporate debt
securities. The Columbia Daily Income Company seeks a high level of income
consistent with the maintenance of liquidity and the preservation of capital by
investing primarily in high quality money market securities.
FUND SHARES
Each Fund may issue one billion shares. Each of the Funds, except the Columbia
Growth Fund, Columbia Mid Cap Growth Fund, Columbia Small Cap Growth Fund,
Columbia Short Term Bond Fund and Columbia Daily Income Company, offer five
classes of shares: Class A, Class B, Class C, Class D and Class Z. The Columbia
Small Cap Growth Fund and Columbia Daily Income Company offer only Class Z
shares. The Columbia Growth Fund offers six classes of shares: Class A, Class B,
Class C, Class D, Class G and Class Z. The Columbia Mid Cap Growth Fund and
Columbia Short Term Bond Fund offer seven classes of shares:
163
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Funds
Class A, Class B, Class C, Class D, Class G, Class T and Class Z. Each share
class has its own expense structure.
Class A and Class T shares are subject to a front-end sales charge of based on
the amount of initial investment. Class A and Class T shares purchased without
an initial sales charge in accounts aggregating $1 million to $25 million at the
time of purchase are subject to a 1.00% contingent deferred sales charge
("CDSC") on shares sold within eighteen months of the time of purchase. Class B
and Class G shares are subject to a maximum CDSC of 5.00% based upon the holding
period after purchase. Class B shares will convert to Class A shares in a
certain number of years after purchase, depending on the program under which
shares were purchased. Class G shares will convert to Class T shares in eight
years after purchase. Class C shares are subject to a 1.00% CDSC on shares sold
within one year after purchase. Class D shares are subject to a front-end sales
charge of 1.00% and a 1.00% CDSC on shares sold within one year after purchase.
Class D shares are closed to new investors. In addition, the Class D sales
charge of 1.00% is waived for purchases of Class D shares by existing class D
shareholders. 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.
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 on the principal exchange on
which they trade, except for securities traded on the NASDAQ, which are valued
at the NASDAQ official close price. 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.
Futures contracts are valued at the settlement price established each day by the
board of trade or exchange on which they are traded.
Options are valued at the last reported sale price, or in the absence of a sale,
the mean between the last quoted bid and ask price.
Foreign securities are generally valued at the last sale 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
164
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Funds
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. The Funds may use a systematic fair valuation model provided
by an independent third party to value securities principally traded in foreign
markets in order to adjust for possible stale pricing that may occur between the
close of the foreign exchanges and the time for valuation. If a security is
valued at a "fair value", such value is likely to be different from the last
quoted market price for the security.
Investments for which market quotations are not readily available, or have
quotations which management believes are not appropriate, are valued at fair
value under procedures approved by the Board of Trustees.
Securities in the Columbia Daily Income Company are valued utilizing the
amortized cost valuation method permitted in accordance with Rule 2a-7 under the
1940 Act provided certain conditions are met. This method involves valuing a
portfolio security initially at its cost and thereafter assuming a constant
accretion or amortization to maturity of any discount or premium, respectively.
SECURITY TRANSACTIONS
Security transactions are accounted for on the trade date. Cost is determined
and gains (losses) are based upon the specific identification method for both
financial statement and federal income tax purposes.
FUTURES CONTRACTS
Certain Funds may invest in municipal and U.S. Treasury futures contracts. The
Funds will invest in these instruments to hedge against the effects of changes
in the value of portfolio securities due to anticipated changes in interest
rates and/or market conditions, for duration management, or when the
transactions are economically appropriate to the reduction of risk inherent in
the management of the Funds and not for trading purposes. The use of futures
contracts involves certain risks, which include: (1) imperfect correlation
between the price movement of the instruments and the underlying securities, (2)
inability to close out positions due to differing trading hours, or the
temporary absence of a liquid market, for either the instrument or the
underlying securities, or (3) an inaccurate prediction by Columbia Management
Advisors, Inc. of the future direction of interest rates. Any of these risks may
involve amounts exceeding the variation margin recorded in the Funds' Statement
of Assets and Liabilities at any given time.
Upon entering into a futures contract, each Fund deposits cash or securities
with the broker in an amount sufficient to meet the initial margin requirement.
Subsequent payments are made or received by the Funds equal to the daily change
in the contract value and are recorded as variation margin receivable or payable
and offset in unrealized gains or losses. Each Fund also identifies portfolio
securities as segregated with the custodian in a separate account in an amount
equal to the futures contract. The Funds recognize a realized gain or loss when
the contract is closed or expires.
OPTIONS
Certain Funds may write call and put options on futures they own or in which
they may invest. Writing put options tends to increase the Funds' exposure to
the underlying instrument. Writing call options tends to decrease the Funds'
exposure to the underlying instrument. When the Funds write a call or put
option, an amount equal to the premium received is recorded as a liability and
subsequently marked-to-market to reflect the current value of the option
written. Premiums received from writing options which expire are treated as
realized gains. Premiums received from writing options which are exercised or
closed are added to the proceeds or offset against the amounts paid on the
underlying future transaction to determine the realized gain or loss. Each Fund
as a writer of an option has no control over whether the underlying future may
be sold (call) or purchased (put) and as a result bears the market risk of an
unfavorable change in the price of the future underlying the written option.
There is the risk the
165
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Funds
Funds may not be able to enter into a closing transaction because of an illiquid
market.
Certain Funds may also purchase put and call options. Purchasing call options
tends to increase the Funds' exposure to the underlying instrument. Purchasing
put options tends to decrease the Funds' exposure to the underlying instrument.
Each Fund pays a premium, which is included in the Funds' Statement of Assets
and Liabilities as an investment and subsequently marked-to-market to reflect
the current value of the option. The risk associated with purchasing put and
call options is limited to the premium paid. Premiums paid for purchasing
options which expire are treated as realized losses. Premiums paid for
purchasing options which are exercised or closed are added to the amounts paid
or offset against the proceeds on the underlying future transaction to determine
the realized gain or loss. The Funds' custodian will set aside cash or liquid
portfolio securities equal to the amount of the written options contract
commitment in a separate account.
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
Forward foreign currency exchange contracts are agreements to exchange one
currency for another at a future date at a specified price. These contracts are
used to minimize the exposure to foreign exchange rate fluctuations during the
period between trade and settlement date of the contracts. Certain Funds may
utilize forward foreign currency exchange contracts in connection with the
settlement of purchases and sales of securities. Certain Funds may also enter
into these contracts to hedge certain other foreign currency denominated assets.
Contracts to buy generally are used to acquire exposure to foreign currencies,
while contracts to sell are used to hedge the Funds' investments against
currency fluctuations. Forward currency contracts are valued daily at the
current exchange rate of the underlying currency, resulting in unrealized gains
(losses) which become realized at the time the foreign currency contracts are
closed or mature. Realized and unrealized gains (losses) arising from such
transactions are included in net realized and unrealized gains (losses) on
foreign currency transactions. The use of forward currency contracts does not
eliminate fluctuations in the prices of the Funds' portfolio securities. While
the maximum potential loss from such contracts is the aggregate face value in
U.S. dollars at the time the contract was opened, exposure is typically limited
to the change in value of the contract (in U.S. dollars) over the period it
remains open. The Funds could also be exposed to risk if the counterparties of
the contracts are unable to fulfill the terms of the contracts.
REPURCHASE AGREEMENTS
Each Fund may engage in repurchase agreement transactions with institutions that
the Funds' investment advisor has determined are creditworthy. Each 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 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 Funds become aware of
such, net of non-reclaimable tax withholdings. Awards from class action
litigation are recorded as a reduction of cost if the Funds still own the
applicable securities on the payment date. If the Funds no longer own the
applicable securities, the proceeds are recorded as realized gains.
The Funds estimate components of distributions from real estate investment
trusts (REITs). Distributions received in excess of income are recorded as a
reduction of the cost of the related investments. If the Funds no longer own the
applicable securities, any distributions received in excess of income are
recorded as realized gains.
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
166
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Funds
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
Statements of Operations) and realized and unrealized gains (losses) are
allocated to each class of the Funds on a daily basis for purposes of
determining the net asset value of each class. Income and expenses are allocated
to each class based on the settled shares method, while realized and unrealized
gains (losses) are allocated based on the relative net assets of each class for
the Columbia Short Term Bond Fund, Columbia Fixed Income Securities Fund,
Columbia National Municipal Bond Fund, Columbia Oregon Municipal Bond Fund and
Columbia High Yield Fund. For all other Funds' income, expenses (other than
class-specific expenses, as shown on the Statements of Operations), and realized
and unrealized gains (losses), are allocated to each class of a Fund, based on
the relative net assets of each class.
FEDERAL INCOME TAX STATUS
Each Fund intends to qualify each year as a "regulated investment company" under
Subchapter M of the Internal Revenue Code, as amended, and will distribute
substantially all of its taxable income, if any, for its tax year, and as such
will not be subject to federal income taxes. In addition, each Fund intends to
distribute in each calendar year substantially all of its net investment income,
capital gains and certain other amounts, if any, such that each Fund should 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 15%. The Funds accrue for such
foreign taxes on net realized and unrealized gains at the appropriate rate for
each jurisdiction.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income of the Columbia Common Stock Fund, Columbia
Growth Fund, Columbia International Stock Fund, Columbia Mid Cap Growth Fund,
Columbia Small Cap Growth Fund, Columbia Technology Fund and Columbia Strategic
Investor Fund are declared and paid annually. Dividends from net investment
income of the Columbia Real Estate Equity Fund and Columbia Balanced Fund are
declared and paid quarterly. Dividends from net investment income of the
Columbia Short Term Bond Fund, Columbia Fixed Income Securities Fund, Columbia
National Municipal Bond Fund, Columbia Oregon Municipal Bond Fund, and Columbia
High Yield Fund are declared daily and paid monthly. Dividends from net
investment income of the Columbia Daily Income Company are declared daily and
paid daily. Net realized capital gains, if any, are distributed at least
annually for all Funds. Additional distributions of net investment income and
capital gains for each Fund may be made at the discretion of the Board of
Trustees in accordance with federal income tax regulations.
167
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Funds
NOTE 3.FEDERAL TAX INFORMATION
The tax character of distributions paid during the year ended August 31, 2004
was as follows:
TAX-EXEMPT ORDINARY LONG-TERM
INCOME INCOME* CAPITAL GAINS TOTAL
----------- ------------- ------------- ------------
Columbia Common Stock Fund .................................. $ -- $ 2,317,519 $ -- $ 2,317,519
Columbia International Stock Fund ........................... -- 1,290,808 -- 1,290,808
Columbia Real Estate Equity Fund ............................ -- 32,144,710 7,814,165 39,958,875
Columbia Strategic Investor Fund ............................ -- 1,745,832 -- 1,745,832
Columbia Balanced Fund ...................................... -- 10,897,644 -- 10,897,644
Columbia Short Term Bond Fund ............................... -- 11,567,348 -- 11,567,348
Columbia Fixed Income Securities Fund ....................... -- 17,387,062 -- 17,387,062
Columbia National Municipal Bond Fund ....................... 540,162 7,054 115,247 662,463
Columbia Oregon Municipal Bond Fund ......................... 18,792,984 95,636 5,369,297 24,257,917
Columbia High Yield Fund .................................... -- 110,686,435 -- 110,686,435
Columbia Daily Income Fund .................................. -- 2,925,450 -- 2,925,450
* For tax purposes short-term capital gains distributions, if any, are
considered ordinary income distributions.
Unrealized appreciation and depreciation at February 28, 2005, based on cost of
investments for federal income tax purposes, and excluding any unrealized
appreciation and depreciation from changes in the value of assets and
liabilities resulting from changes in exchange rates, was:
NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
APPRECIATION DEPRECIATION (DEPRECIATION)
------------ ------------- ------------
Columbia Common Stock Fund .................................. $ 26,895,967 $ (4,289,490) $ 22,606,477
Columbia Growth Fund ........................................ 102,025,070 (10,885,382) 91,139,688
Columbia International Stock Fund ........................... 115,994,991 (4,108,291) 111,886,700
Columbia Mid Cap Growth Fund ................................ 141,030,720 (19,495,654) 121,535,066
Columbia Small Cap Growth Fund .............................. 33,691,681 (10,175,740) 23,515,941
Columbia Real Estate Equity Fund ............................ 319,894,449 (4,274,433) 315,620,016
Columbia Technology Fund .................................... 6,012,208 (701,893) 5,310,315
Columbia Strategic Investor Fund ............................ 91,769,604 (2,820,802) 88,948,802
Columbia Balanced Fund ...................................... 25,908,716 (6,081,843) 19,826,873
Columbia Short Term Bond Fund ............................... 1,334,773 (3,919,257) (2,584,484
Columbia Fixed Income Securities Fund ....................... 4,968,605 (2,346,894) 2,621,711
Columbia National Municipal Bond Fund ....................... 471,816 (10,471) 461,345
Columbia Oregon Municipal Bond Fund ......................... 22,887,298 (2,215,521) 20,671,777
Columbia High Yield Fund .................................... 53,569,592 (3,930,574) 49,639,018
168
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Funds
The following capital loss carryforwards, determined as of August 31, 2004, may
be available to reduce taxable income arising from future net realized gains on
investments, if any, to the extent permitted by the Internal Revenue Code:
YEAR OF EXPIRATION
2006 2007 2008 2009 2010 2011 TOTAL
-------- ----------- ----------- ------------- -------------- ------------ -------------
Columbia Common
Stock Fund ................. $ -- $ -- $ -- $ -- $ 49,129,624 $ 18,452,682 $ 67,582,306
Columbia Growth Fund ....... -- 12,669,149 7,477,479 97,550,243 201,393,752 43,705,919 362,796,542
Columbia International
Stock Fund ................. -- 3,992,699 4,566,169 659,591 12,463,383 9,023,330 30,705,172
Columbia Mid Cap
Growth Fund ................ -- -- 13,161,549 15,799,915 95,645,403 4,954,493 129,561,360
Columbia Small Cap
Growth Fund ................ -- -- -- -- 97,865,374 -- 97,865,374
Columbia Technology Fund ... -- -- -- -- 1,969,604 -- 1,969,604
Columbia Balanced Fund ..... -- -- -- -- 56,019,395 10,165,186 66,184,581
Columbia Short Term
Bond Fund .................. 256,035 -- 1,103,186 -- -- -- 1,359,221
Columbia High Yield Fund ... -- -- -- -- 16,290,578 -- 16,290,578
Columbia Daily Income
Company .................... -- -- -- -- -- 320 320
Of the capital loss carryforwards attributable to Columbia Growth Fund,
$20,146,628 ($12,669,149 expiring 08/31/07 and $7,477,479 expiring 08/31/08)
remains from the Columbia Growth Fund's merger with Galaxy Large Cap Growth
Fund.
Of the capital loss carryforwards attributable to Columbia International Stock
Fund, $5,920,504 ($3,992,699 expiring 08/31/07 and $1,927,805 expiring 08/31/08)
and $3,297,955 ($2,638,364 expiring 08/31/08 and $659,591 expiring 08/31/09)
remain from the Columbia International Stock Fund's merger with Liberty Newport
International Equity Fund and Stein Roe International Fund, respectively.
Of the capital loss carryforwards attributable to Columbia Mid Cap Growth Fund,
$6,884,210 ($5,507,368 expiring 08/31/08 and $1,376,842 expiring 08/31/09) and
$19,700,034 ($7,654,181 expiring 08/31/08 and $12,045,853 expiring 08/31/09)
remain from the Columbia Mid Cap Growth Fund's merger with Liberty Mid Cap
Growth Fund and Stein Roe Capital Opportunities Fund, respectively.
Of the capital loss carryforwards attributable to Columbia Short Term Bond Fund,
$1,359,221 ($256,035 expiring 08/31/06 and $1,103,186 expiring 08/31/08) remain
from the Columbia Short Term Bond Fund's merger with Galaxy Short Term Bond
Fund.
NOTE 4. FEES AND COMPENSATION PAID TO AFFILIATES
INVESTMENT ADVISORY FEE
Columbia Management Advisors, Inc. ("Columbia"), an indirect wholly owned
subsidiary of Bank of America Corporation ("BOA"), is the investment advisor to
the Funds and provides administrative and other services to the Funds. Columbia
receives a monthly investment advisory fee based on the each Fund's average
daily net assets at the following annual rates:
ANNUAL
FEE
RATE
------
Columbia Common Stock Fund 0.600%
Columbia Real Estate Equity Fund 0.750%
Columbia Strategic Investor Fund 0.750%
Columbia Balanced Fund 0.500%
Columbia Fixed Income Securities Fund 0.500%
Columbia National Municipal Bond Fund 0.500%
Columbia Oregon Municipal Bond Fund 0.500%
169
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Funds
FEES ON FEES ON FEES ON FEES ON FEES ON FEES ON FEES ON
AVERAGE AVERAGE AVERAGE AVERAGE AVERAGE AVERAGE AVERAGE
NET ASSETS NET ASSETS NET ASSETS NET ASSETS NET ASSETS NET ASSETS NET ASSETS
FIRST NEXT NEXT NEXT NEXT NEXT OVER
$200 $300 $500 $500 $1.5 $3 $6
MILLION MILLION MILLION MILLION BILLION BILLION BILLION
---------- ---------- ---------- ----------- ----------- ---------- ----------
Columbia Growth Fund 0.750% 0.625% 0.500% 0.500% 0.500% 0.500% 0.500%
Columbia International
Stock Fund 0.870% 0.870% 0.820% 0.770% 0.720% 0.700% 0.680%
Columbia Mid Cap Growth Fund 0.820% 0.820% 0.750% 0.720% 0.670% 0.670% 0.670%
Columbia Small Cap
Growth Fund 0.870% 0.870% 0.820% 0.770% 0.770% 0.770% 0.770%
Columbia Technology Fund 0.870% 0.870% 0.820% 0.770% 0.770% 0.770% 0.770%
Columbia Short Term
Bond Fund 0.450% 0.450% 0.400% 0.400% 0.400% 0.400% 0.400%
Columbia High Yield Fund 0.600% 0.600% 0.550% 0.520% 0.490% 0.490% 0.490%
Columbia Daily Income
Company 0.500% 0.500% 0.450% 0.400% 0.400% 0.400% 0.400%
Prior to November 1, 2004, Columbia received a monthly investment advisory fee
based on each Fund's average daily net assets as follows:
ANNUAL
FEE
RATE
------
Columbia Common Stock Fund 0.600%
Columbia Small Cap Growth Fund 1.000%
Columbia Real Estate Equity Fund 0.750%
Columbia Technology Fund 1.000%
Columbia Strategic Investor Fund 0.750%
Columbia Balanced Fund 0.500%
Columbia Short Term Bond Fund 0.500%
Columbia Fixed Income Securities Fund 0.500%
Columbia National Municipal Bond Fund 0.500%
Columbia Oregon Municipal Bond Fund 0.500%
Columbia High Yield Fund 0.600%
FEES ON FEES ON FEES ON FEES ON
AVERAGE AVERAGE AVERAGE AVERAGE
NET ASSETS NET ASSETS NET ASSETS NET ASSETS
FIRST $200 NEXT $300 NEXT $500 OVER $1
MILLION MILLION MILLION BILLION
---------- ---------- ---------- ----------
Columbia
Growth Fund 0.750% 0.625% 0.500% 0.500%
Columbia
International
Stock Fund 1.000% 1.000% 0.950% 0.900%
Columbia
Mid Cap
Growth Fund 1.000% 1.000% 0.750% 0.750%
Columbia
Daily Income
Company 0.500% 0.500% 0.450% 0.400%
Columbia had voluntarily agreed to waive a portion of its investment advisory
fee for the Columbia International Stock Fund at an annual rate of 0.10% of the
average daily net assets for the period September 1, 2004 through October 31,
2004. The annualized effective rate of this waiver is 0.03%.
For the six months ended February 28, 2005, the annualized effective investment
advisory fee rates for the Columbia Growth Fund, Columbia International Stock
Fund, Columbia Mid Cap Growth Fund, Columbia Small Cap Growth Fund, Columbia
Technology Fund, Columbia Short Term Bond Fund, Columbia High Yield Fund and
Columbia Daily Income Company were 0.61%, 0.87%, 0.82%, 0.93%, 0.91%, 0.47%,
0.56% and 0.49%, respectively.
PRICING AND BOOKKEEPING FEES
Columbia is responsible for providing pricing and bookkeeping services to the
Funds under a pricing, bookkeeping and fund administration agreement. Under a
separate agreement (the "Outsourcing Agreement"), Columbia has delegated certain
of those functions to State Street Corporation ("State Street"). As a result,
Columbia pays the total fees collected to State Street under the Outsourcing
Agreement.
170
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Funds
Under its pricing, bookkeeping and fund administration agreement with the Funds,
Columbia receives from each Fund an annual flat financial accounting fee of
$25,000, an annual flat financial reporting fee of $19,965 and a monthly
financial accounting fee at the annual rate of 0.02% of the average daily net
assets of each Fund. The combined financial accounting and financial reporting
fee for a Fund in any year will not exceed $150,000.
The Funds also pay additional fees for pricing services based on the number of
securities held by each Fund. For the six months ended February 28, 2005, the
annualized effective pricing and bookkeeping fee rates for the Funds, inclusive
of out-of-pocket expenses, were as follows:
Columbia Common Stock Fund 0.044%
Columbia Growth Fund 0.020%
Columbia International Stock Fund 0.026%
Columbia Mid Cap Growth Fund 0.018%
Columbia Small Cap Growth Fund 0.035%
Columbia Real Estate Equity Fund 0.017%
Columbia Technology Fund 0.151%
Columbia Strategic Investor Fund 0.032%
Columbia Balanced Fund 0.042%
Columbia Short Term Bond Fund 0.037%
Columbia Fixed Income Securities Fund 0.046%
Columbia National Municipal Bond Fund 0.482%
Columbia Oregon Municipal Bond Fund 0.040%
Columbia High Yield Fund 0.010%
Columbia Daily Income Company 0.026%
TRANSFER AGENT FEE
Columbia Funds Services, Inc. (the "Transfer Agent"), an affiliate of Columbia,
provides shareholder services to the Funds and has subcontracted with Boston
Financial Data Services ("BFDS") to serve as sub-transfer agent. For such
services, the Transfer Agent receives a fee per open account, in addition to
reimbursement for certain out-of-pocket expenses. The Funds' annual charges per
open account for the transfer agent fees and annualized transfer agent fee
rates, inclusive of out of pocket expenses, for the six months ended February
28, 2005 are as follows:
PER OPEN
ACCOUNT ANNUALIZED
FEE RATE FEE RATE
---------- ----------
Columbia Common Stock Fund $ 28.00 0.24%
Columbia Growth Fund $ 28.00 0.19%
Columbia International
Stock Fund $ 28.00 0.12%
Columbia Mid Cap Growth Fund $ 28.00 0.17%
Columbia Small Cap
Growth Fund $ 28.00 0.16%
Columbia Real Estate Equity Fund $ 28.00 0.12%
Columbia Technology Fund $ 28.00 0.40%
Columbia Strategic Investor Fund $ 28.00 0.15%
Columbia Balanced Fund $ 28.00 0.18%
Columbia Short Term Bond Fund $ 34.00 0.09%
Columbia Fixed Income
Securities Fund $ 34.00 0.22%
Columbia National Municipal
Bond Fund $ 34.00 0.13%
Columbia Oregon Municipal
Bond Fund $ 34.00 0.06%
Columbia High Yield Fund $ 34.00 0.10%
Columbia Daily Income
Company $ 33.50 0.23%
Columbia has voluntarily agreed to waive a portion of the transfer agent fees
for the Columbia International Stock Fund, Columbia Mid Cap Growth Fund and
Columbia Strategic Investor Fund. For the six months ended February 28, 2005,
the annualized effective fee rates after waivers for Columbia International
Stock Fund, Columbia Mid Cap Growth Fund and Columbia Strategic Investor Fund
were 0.02%, 0.12% and 0.12%, respectively.
171
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Funds
UNDERWRITING DISCOUNTS, SERVICE AND DISTRIBUTION FEES
Columbia Funds Distributor, Inc. (the "Distributor"), an affiliate of Columbia,
is the principal underwriter of the Funds. For the six months ended February 28,
2005, the Distributor has retained net underwriting discounts and CDSC fees as
follows:
FRONT-END
SALES CHARGE CONTINGENT DEFERRED SALES CHARGE (CDSC)
----------------- -------------------------------------------------------------
CLASS A CLASS T CLASS A CLASS B CLASS C CLASS D CLASS G CLASS T
------- ------- -------- -------- ------- ------- -------- --------
Columbia
Common Stock Fund .................. $ 374 $ -- $ -- $ 1,236 $ 32 $ -- $ -- $ --
Columbia Growth Fund ............... 374 -- -- 4,261 147 -- 9,222 --
Columbia
International Stock Fund ........... 2,076 -- -- 12,410 760 42 -- --
Columbia
Mid Cap Growth Fund ................ 3,233 123 -- 7,839 773 -- 1,030 --
Columbia
Real Estate Equity Fund ............ 15,996 -- 1,889 18,338 491 353 -- --
Columbia Technology Fund ........... 4,963 -- -- 13,985 215 -- -- --
Columbia
Strategic Investor Fund ............ 70,610 -- -- 37,521 3,229 1 -- --
Columbia Balanced Fund ............. 1,501 -- -- 10,129 68 1 -- --
Columbia
Short Term Bond Fund ............... 2,834 -- 4,389 67,068 -- 283 2,608 --
Columbia Fixed Income
Securities Fund .................... 337 -- -- 8,043 199 158 -- --
Columbia National
Municipal Bond Fund ................ 445 -- -- 92 100 -- -- --
Columbia Oregon
Municipal Bond Fund ................ 1,347 -- -- 1,531 222 -- -- --
Columbia High Yield Fund ........... 20,292 -- 207 139,158 2,715 833 -- --
172
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Funds
The Funds have adopted a 12b-1 plan (the "Plan") which requires the payment of a
monthly service and distribution fee to the Distributor based on the average
daily net assets of each Fund at the following annual rates:
DISTRIBUTION FEE
----------------------------------------------------
CLASS A(A) CLASS B CLASS C CLASS D CLASS G
---------- -------- -------- -------- --------
Columbia Common Stock Fund .................. 0.10% 0.75% 0.75% 0.75% --
Columbia Growth Fund ........................ 0.10% 0.75% 0.75% 0.75% 0.65%(b)
Columbia International Stock Fund ........... -- 0.75% 0.75% 0.75% --
Columbia Mid Cap Growth Fund ................ 0.10% 0.75% 0.75% 0.75% 0.65%(b)
Columbia Real Estate Equity Fund ............ 0.10% 0.75% 0.75% 0.75% --
Columbia Technology Fund .................... 0.10% 0.75% 0.75% 0.75% --
Columbia Strategic Investor Fund ............ -- 0.75% 0.75% 0.75% --
Columbia Balanced Fund ...................... 0.10% 0.75% 0.75% 0.75% --
Columbia Short Term Bond Fund ............... 0.10% 0.75% 0.75% 0.75% 0.65%(c)
Columbia Fixed Income Securities Fund ....... 0.10% 0.75% 0.75% 0.75% --
Columbia National Municipal Bond Fund ....... 0.10% 0.75% 0.75% 0.75% --
Columbia Oregon Municipal Bond Fund ......... 0.10% 0.75% 0.75% 0.75% --
Columbia High Yield Fund .................... 0.10% 0.75% 0.75% 0.75% --
SERVICE FEE
--------------------------------------------------------
CLASS A(A) CLASS B CLASS C CLASS D CLASS G
---------- -------- -------- -------- --------
Columbia Common Stock Fund .................. 0.25% 0.25% 0.25% 0.25% --
Columbia Growth Fund ........................ 0.25% 0.25% 0.25% 0.25% 0.50%(b)
Columbia International Stock Fund ........... 0.25% 0.25% 0.25% 0.25% --
Columbia Mid Cap Growth Fund ................ 0.25% 0.25% 0.25% 0.25% 0.50%(b)
Columbia Real Estate Equity Fund ............ 0.25% 0.25% 0.25% 0.25% --
Columbia Technology Fund .................... 0.25% 0.25% 0.25% 0.25% --
Columbia Strategic Investor Fund ............ 0.25% 0.25% 0.25% 0.25% --
Columbia Balanced Fund ...................... 0.25% 0.25% 0.25% 0.25% --
Columbia Short Term Bond Fund ............... 0.25% 0.25% 0.25% 0.25% 0.50%(c)
Columbia Fixed Income Securities Fund ....... 0.25% 0.25% 0.25% 0.25% --
Columbia National Municipal Bond Fund ....... 0.25% 0.25% 0.25% 0.25% --
Columbia Oregon Municipal Bond Fund ......... 0.25% 0.25% 0.25% 0.25% --
Columbia High Yield Fund .................... 0.25% 0.25% 0.25% 0.25% --
(a) The Fund's Board of Trustees currently limits payments under the Plan for
Class A shares to 0.25% annually of the Class A average daily net assets.
(b) The Distributor has contractually agreed to limit a portion of the Class G
distribution and service fees so that combined the fee does exceed 0.95%
annually of the Class G shares average daily net assets. Of the 0.50%
service fee, 0.25% relates to shareholder liaison fees and 0.25% relates to
administrative support fees.
(c) The Distributor has contractually agreed to limit a portion of the Class G
distribution and service fees so that combined the fee does exceed 0.80%
annually of the Class G shares average daily net assets. Of the 0.50%
service fee, 0.25% relates to shareholder liaison fees and 0.25% relates to
administrative support fees.
173
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Funds
The Distributor has voluntarily agreed to waive a portion of the Class C and
Class D distribution and service fees so that combined these fees do not exceed
the annual rates on the average daily net assets of Class C and Class D shares
of each Fund as follows:
Columbia Short Term Bond Fund ......................... 0.40%
Columbia Fixed Income Securities Fund ................. 0.85%
Columbia National Municipal Bond Fund ................. 0.65%
Columbia Oregon Municipal Bond Fund ................... 0.65%
Columbia High Yield Fund .............................. 0.85%
The CDSC and the fees received from the Plan are used principally as repayment
to the Distributor for amounts paid by the Distributor to dealers who sold such
shares.
SHAREHOLDER SERVICES FEES
The Columbia Mid Cap Growth Fund and Columbia Short Term Bond Fund have adopted
shareholder services plans that permit them to pay for certain services provided
to Class T shareholders by their financial advisors. The annual service fee may
equal up to 0.50% annually for Class T shares, but will not exceed each Fund's
net investment income attributable to Class T shares. The Columbia Mid Cap
Growth Fund and Columbia Short Term Bond Fund do not intend to pay more than
0.30% and 0.15%, respectively, for annual Class T shareholder services fees.
EXPENSE LIMITS AND FEE REIMBURSEMENTS
Columbia has voluntarily agreed to waive fees and reimburse the Funds for
certain expenses so that total expenses (exclusive of service fees, distribution
fees, brokerage commissions, interest, taxes and extraordinary expenses, if any)
would not exceed certain expense limitations. These arrangements may be revised
or discontinued at any time. Total expenses are limited to the following annual
percentages based on each Fund's average daily net assets:
Columbia Technology Fund 1.65%
Columbia Short Term Bond Fund 0.66%
Columbia National Municipal Bond Fund 0.65%
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
With the exception of one officer, all officers of the Funds are employees of
Columbia or its affiliates and receive no compensation from the Funds. The Board
of Trustees has appointed a Chief Compliance Officer to the Funds in accordance
with federal securities regulations. Each Fund, along with other affiliated
funds, will pay its pro-rata share of the expenses associated with the Office of
the Chief Compliance Officer. Each Fund's fee for the Office of the Chief
Compliance Officer will not exceed $15,000 per year.
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.
OTHER
Columbia provides certain services to the Funds related to Sarbanes-Oxley
compliance. This amount is included in "Other expenses" on the Statements of
Operations. For the six months ended February 28, 2005, the Funds paid fees to
Columbia for such services as follows:
Columbia Common Stock Fund ........................... $ 894
Columbia Growth Fund ................................. 1,151
Columbia International Stock Fund .................... 1,095
Columbia Mid Cap Growth Fund ......................... 1,196
Columbia Small Cap Growth Fund ....................... 907
Columbia Real Estate Equity Fund ..................... 1,247
Columbia Technology Fund ............................. 774
Columbia Strategic Investor Fund ..................... 994
Columbia Balanced Fund ............................... 967
Columbia Short Term Bond Fund ........................ 1,007
Columbia Fixed Income Securities Fund ................ 902
Columbia National Municipal Bond Fund ................ 757
Columbia Oregon Municipal Bond Fund .................. 964
Columbia High Yield Fund ............................. 1,643
Columbia Daily Income Company ........................ 1,037
174
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Funds
NOTE 5. PORTFOLIO INFORMATION
For the six months ended February 28, 2005, the cost of purchases and proceeds
from sales of securities, excluding short-term obligations, were as follows:
U.S. GOVERNMENT OTHER INVESTMENT
SECURITIES SECURITIES
----------------------------- -------------------------------
PURCHASES SALES PURCHASES SALES
------------ ------------- -------------- -------------
Columbia Common Stock Fund .................. $ -- $ -- $ 95,332,792 $ 201,885,721
Columbia Growth Fund ........................ -- -- 388,331,194 553,044,704
Columbia International Stock Fund ........... -- -- 239,287,114 244,778,059
Columbia Mid Cap Growth Fund ................ -- -- 341,242,109 498,963,643
Columbia Small Cap Growth Fund .............. -- -- 266,181,247 618,105,218
Columbia Real Estate Equity Fund ............ -- -- 40,144,063 148,679,718
Columbia Technology Fund .................... -- -- 75,742,831 73,254,668
Columbia Strategic Investor Fund ............ -- -- 141,216,438 135,725,726
Columbia Balanced Fund ...................... 18,418,912 24,889,475 101,348,618 228,135,228
Columbia Short Term Bond Fund ............... 50,232,473 13,284,901 34,309,989 74,544,864
Columbia Fixed Income Securities Fund ....... 35,294,086 46,510,020 8,209,676 50,386,186
Columbia National Municipal Bond Fund ....... -- -- 1,351,513 5,018,627
Columbia Oregon Municipal Bond Fund ......... -- -- 11,461,501 20,978,462
Columbia High Yield Fund .................... -- -- 380,356,426 356,297,273
For the six months ended February 28, 2005, Columbia Technology Fund had
transactions in written options as follows:
NUMBER OF PREMIUM
CONTRACTS RECEIVED
--------- ---------
Options Outstanding at
August 31, 2004 -- $ --
Options Written - Call 200 62,399
Options Written - Put -- --
Options Closed (200) (62,399)
Options Expired -- --
--------- ---------
Options Outstanding at
February 28, 2005 -- $ --
NOTE 6. OTHER RELATED PARTY TRANSACTIONS
During the six months ended February 28, 2005, the Columbia Technology Fund used
Bank of America Securities, a wholly owned subsidiary of BOA, as a broker. Total
commissions paid to Bank of America Securities during the period were $125.
NOTE 7. REDEMPTION FEES
The Columbia International Stock Fund imposes a 2.00% redemption fee to
shareholders of Class Z shares who redeem shares held for 60 days or less.
Effective January 3, 2005, the Columbia International Stock Fund also began
imposing a 2.00% redemption fee to shareholders of Class A, Class B, Class C and
Class D 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. For the six months ended February
28, 2005, the redemption fees for the Class A, Class B, Class C, Class D and
Class Z shares of the Columbia International Stock Fund amounted to $1,935,
$810, $53, $58 and $45,605, respectively.
NOTE 8. LINE OF CREDIT
The Funds and other affiliated funds participate in a $350,000,000 committed
unsecured revolving line of credit provided by State Street Bank and Trust
Company. Borrowings are used for temporary or
175
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Funds
emergency purposes to facilitate portfolio liquidity. Interest is charged to
each participating fund based on its borrowings at a rate per annum equal to the
Federal Funds rate plus 0.50%. In addition, a commitment fee of 0.10% per annum
is accrued and apportioned among the participating funds based on their pro-rata
portion of the unutilized line of credit. The commitment fee is included in
"Other expenses" on the Statements of Operations.
For the six months ended February 28, 2005, the average daily loan balance
outstanding on days where borrowings existed for the Columbia Mid Cap Growth
Fund was $34,000,000 at a weighted average interest rate of 2.72%.
For the six months ended February 28, 2005, the average daily loan balance
outstanding on days where borrowings existed for the Columbia Small Cap Growth
Fund was $19,250,000 at a weighted average interest rate of 2.52%.
For the six months ended February 28, 2005, the Funds, other than the Columbia
Mid Cap Growth Fund and Columbia Small Cap Growth Fund, did not borrow under
this arrangement.
NOTE 9. SHARES OF BENEFICIAL INTEREST
As of February 28, 2005, the Funds had shareholders whose shares were
beneficially owned by participant accounts over which BOA and/or its affiliates
had either sole or joint investment discretion. Subscription and redemption
activity in these accounts may have a significant effect on the operations of
the Funds. The numbers of such accounts and the percentage of shares of
beneficial interest outstanding held therein are as follows:
% OF SHARES
NUMBER OF OUTSTANDING
SHAREHOLDERS HELD
------------ -----------
Columbia Growth Fund ................... 1 9.8%
Columbia International Stock Fund ...... 2 66.0%
Columbia Mid Cap Growth Fund ........... 2 17.4%
Columbia Real Estate Equity Fund ....... 2 21.4%
Columbia Short Term Bond Fund .......... 3 65.9%
Columbia National
Municipal Bond Fund .................. 1 13.4%
Columbia High Yield Fund ............... 2 33.1%
NOTE 10. DISCLOSURE OF SIGNIFICANT RISKS AND CONTINGENCIES
CONCENTRATION OF CREDIT RISK
Columbia National Municipal Bond Fund and Columbia Oregon Municipal Bond Fund
hold investments that are insured by private insurers who guarantee the payment
of principal and interest in the event of default or that are supported by a
letter of credit. Each of the Funds' insurers are rated AAA by Moody's Investors
Services, Inc., except for Radian Asset Assurance, Inc., which is rated AA by
Standard & Poor's.
At February 28, 2005, private insurers who insured greater than 5% of the total
investments of the Funds were as follows:
Columbia National Municipal Bond Fund
% OF
TOTAL
INSURER INVESTMENTS
---------------------------------- -----------
Ambac Assurance Corp. 20.9%
MBIA Insurance Corp. 17.2%
Financial Guaranty Insurance Co. 15.9%
Financial Security Assurance, Inc. 10.2%
Columbia Oregon Municipal Bond Fund
% OF
TOTAL
INSURER INVESTMENTS
---------------------------------- -----------
Financial Guaranty Insurance Co. 13.5%
Financial Security Assurance, Inc. 11.7%
MBIA Insurance Corp. 9.2%
Ambac Assurance Corp. 6.9%
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.
176
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Funds
GEOGRAPHIC CONCENTRATION
The Columbia National Municipal Bond Fund has greater than 5% of its total
investments at February 28, 2005, invested in debt obligations issued by the
states of Illinois, Indiana, Mississippi, Tennessee, Texas and Washington. Also
on this date, the Columbia Oregon Municipal Bond Fund has greater than 5% of its
total investments invested in debt obligations issued by the state of Oregon.
The Funds are also invested in each state's respective political subdivisions,
agencies and public authorities to obtain funds for various purposes. These
Funds are more susceptible to economic and political factors adversely affecting
issuers of each respective state's specific municipal securities than are
municipal bond funds that are not concentrated to the same extent in these
issuers.
HIGH-YIELD SECURITIES
Investing in high-yield securities may involve greater credit risk and
considerations not typically associated with investing in U.S. Government bonds
and other higher quality fixed income securities. These securities are
non-investment grade securities, often referred to as "junk bonds." Economic
downturns may disrupt the high yield market and impair the ability of issuers to
repay principal and interest. Also, an increase in interest rates would likely
have an adverse impact on the value of such obligations. Moreover, high-yield
securities may be less liquid to the extent that there is no established retail
secondary market.
INDUSTRY FOCUS
The Funds may focus their investments in certain industries, subjecting them to
greater risk than a fund that is more diversified.
ISSUER FOCUS
As non-diversified funds, the Columbia Real Estate Equity Fund, the Columbia
Technology Fund and the Columbia Oregon Municipal Bond Fund may invest a greater
percentage of its total assets in the securities of fewer issuers than a
diversified fund. The Funds may, therefore, have a greater risk of loss from a
few issuers than a similar fund that invests more broadly.
LEGAL PROCEEDINGS
On February 9, 2005, Columbia and Columbia Funds Distributor, Inc. (collectively
the "Columbia Group") entered into an Assurance of Discontinuance with the New
York Attorney General ("NYAG") (the "NYAG Settlement") and consented to the
entry of a cease-and-desist order by the Securities and Exchange Commission
("SEC") (the "SEC Order"). The SEC Order and the NYAG Settlement are referred to
collectively as the "Settlements". The Settlements contain substantially the
same terms and conditions as outlined in the agreements in principle which
Columbia Group entered into with the SEC and NYAG in March 2004.
Under the terms of the SEC Order, the Columbia Group has agreed, among other
things, to: pay $70 million in disgorgement and $70 million in civil money
penalties; cease and desist from violations of the antifraud provisions and
certain other provisions of the federal securities laws; maintain certain
compliance and ethics oversight structures; retain an independent consultant to
review the Columbia Group's applicable supervisory, compliance, control and
other policies and procedures; and retain an independent distribution consultant
(see below). The Columbia Funds have also voluntarily undertaken to implement
certain governance measures designed to maintain the independence of their
boards of trustees. The NYAG Settlement also, among other things, requires
Columbia and its affiliates, Banc of America Capital Management, LLC and BACAP
Distributors LLC to reduce certain Columbia Funds, Nations Funds and other
mutual fund management fees collectively by $32 million per year for five years,
for a projected total of $160 million in management fee reductions.
Pursuant to the procedures set forth in the SEC Order, the $140 million in
settlement amounts described above will be distributed in accordance with a
distribution plan to be developed by an independent distribution consultant, who
is acceptable to the SEC staff and the Columbia Funds' independent trustees. The
distribution plan must be based on a methodology developed in consultation with
the Columbia Group and the Funds' independent trustees and not unacceptable to
the staff of the SEC.
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.
177
________________________________________________________________________________
February 28, 2005 (Unaudited) Columbia Funds
A copy of the SEC Order is available on the SEC website at http://www.sec.gov. A
copy of the NYAG Settlement is available as part of the Bank of America
Corporation Form 8-K filing on February 10, 2005.
In connection with the events described in detail above, various parties have
filed suit against certain funds, their Boards and/or Bank of America (and
affiliated entities). More than 300 cases (including those filed against
entities unaffiliated with the funds, their Boards and/or FleetBoston and its
affiliated entities) have been consolidated in a multi-district proceeding and
transferred to the Federal District Court in Maryland. Recently, certain
Columbia funds and affiliated entities have been named as defendants in several
direct and derivative actions under various sections of the Investment Company
Act of 1940, as amended, alleging, among other things, that the fees and
expenses paid by those funds are excessive.
On January 11, 2005 a putative class action lawsuit was filed in federal
district court in Massachusetts against, among others, the Trustees of the Funds
and Columbia. The lawsuit alleges that defendants violated common law duties to
fund shareholders as well as sections of the Investment Company Act of 1940, by
failing to ensure that the Fund and other affiliated funds participated in
securities class action settlements for which the funds were eligible.
Specifically, plaintiffs allege that defendants failed to submit proof of claims
in connection with settlements of securities class action lawsuits filed against
companies in which the funds held positions.
On March 2, 2005, four civil revenue sharing actions alleging, among other
things, that various mutual funds advised by Columbia Management and certain
other affiliates inappropriately used fund assets to pay brokers to promote the
funds by directing fund brokerage transactions to such brokers and did not fully
disclose such arrangements to shareholders, and charged excessive 12b-1 fees,
were consolidated into a single action in the United States District Court for
Massachusetts (In re Columbia Entities Litigation, Civil Action No.
04-11704-REK). The consolidated complaint has not yet been filed.
The funds and the other defendants to these actions, including Columbia and
various of its affiliates, certain other mutual funds advised by Columbia and
its affiliates, and various directors of such funds, have denied these
allegations and are contesting the plaintiffs' claims. These proceedings are
ongoing, however, based on currently available information, Columbia believes
that these lawsuits are without merit, that the likelihood they will have a
material adverse impact on any fund is remote, and that the lawsuits are not
likely to materially affect its ability to provide investment management
services to its clients, including the funds.
For the six months ended February 28, 2005, Columbia has assumed legal,
consulting services and Trustees' fees incurred by the Funds in connection with
these matters as follows:
Columbia Common Stock Fund ......................... $ 2,299
Columbia Growth Fund ............................... 6,719
Columbia International Stock Fund .................. 5,715
Columbia Mid Cap Growth Fund ....................... 7,512
Columbia Small Cap Growth Fund ..................... 2,733
Columbia Real Estate Equity Fund ................... 8,095
Columbia Technology Fund ........................... 372
Columbia Strategic Investor Fund ................... 4,100
Columbia Balanced Fund ............................. 3,583
Columbia Short Term Bond Fund ...................... 4,404
Columbia Fixed Income Securities Fund .............. 2,599
Columbia National Municipal Bond Fund .............. 114
Columbia Oregon Municipal Bond Fund ................ 3,707
Columbia High Yield Fund ........................... 15,281
NOTE 11. PROPOSED REORGANIZATION
On February 10, 2005, the Board of Trustees approved a proposal to merge the
Columbia Short Term Bond Fund into the Nations Short-Term Income Fund. The
merger is subject to approval by the Nations Funds Board of Trustees as well as
shareholder approval and the satisfaction of certain other conditions. The
Columbia Short Term Bond Fund will be closed to new investments as of the close
of business on April 29, 2005. The merger is expected to be completed in the
third quarter of 2005.
The Columbia National Municipal Bond Fund will be closed to new investments as
of the close of business on April 29, 2005. On February 10, 2005, the Board of
Trustees have approved its liquidation, which will take effect later this year,
pending shareholder approval.
NOTE 12. SUBSEQUENT EVENT
As of the end of business on March 18, 2005, the Columbia Common Stock Fund and
the Columbia Growth Fund were acquired by the Columbia Large Cap Core Fund and
Columbia Large Cap Growth Fund, respectively, pursuant to a plan of
reorganization approved by the Funds' shareholders.
178
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia Common Stock Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS A SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 18.10 $ 17.22 $ 14.91 $ 15.09
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (c) 0.09(d) 0.02 0.01 --(e)
Net realized and unrealized gain (loss) on
investments 1.69 0.89 2.30 (0.11)
------------ ------------ ------------ ------------
Total from investment operations 1.78 0.91 2.31 (0.11)
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.10) (0.03) -- (0.07)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 19.78 $ 18.10 $ 17.22 $ 14.91
Total return (f) 9.86%(g) 5.28% 15.49%(g) (0.71)%(g)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 802 $ 1,201 $ 223 $ 32
Ratio of expenses to average net assets (h) 1.22%(i) 1.17% 1.40%(i) 1.32%(i)
Ratio of net investment income (loss) to
average net assets (h) 0.98%(i) 0.13% 0.08%(i) (0.03)%(i)
Portfolio turnover rate 35%(g) 192% 102%(g) 107%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class A shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Net investment income per share reflects a special dividend which amounted
to $0.08 per share.
(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) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS B SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 17.88 $ 17.12 $ 14.91 $ 15.09
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (c) 0.01(d) (0.12) (0.09) (0.01)
Net realized and unrealized gain (loss) on
investments 1.69 0.88 2.30 (0.12)
------------ ------------ ------------ ------------
Total from investment operations 1.70 0.76 2.21 (0.13)
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income -- -- -- (0.05)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 19.58 $ 17.88 $ 17.12 $ 14.91
Total return (e) 9.51%(f) 4.44% 14.82%(f) (0.84)%(f)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 2,102 $ 2,060 $ 620 $ 109
Ratio of expenses to average net assets (g) 1.97%(h) 1.92% 2.36%(h) 2.07%(h)
Ratio of net investment income (loss) to
average net assets (g) 0.14%(h) (0.67)% (0.90)%(h) (0.78)%(h)
Portfolio turnover rate 35%(f) 192% 102%(f) 107%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class B shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Net investment income per share reflects a special dividend which amounted
to $0.08 per share.
(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.
179
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia Common Stock Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31,
CLASS C SHARES 2005 2004 (a)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 17.88 $ 17.61
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)(b) 0.02(c) (0.11)
Net realized and unrealized gain on investments 1.68 0.38
------------ ------------
Total from investment operations 1.70 0.27
------------ ------------
NET ASSET VALUE, END OF PERIOD $ 19.58 $ 17.88
Total return (d)(e) 9.51% 1.53%
------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 50 $ 26
Ratio of expenses to average net assets (f)(g) 1.97% 1.95%
Ratio of net investment income (loss) to average
net assets (f)(g) 0.22% (0.65)%
Portfolio turnover rate 35%(e) 192%
------------ ------------
(a) Class C shares were initially offered on October 13, 2003. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Net investment income per share reflects a special dividend which amounted
to $0.08 per share.
(d) Total return at net asset value assuming no contingent deferred sales
charge.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS D SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 17.88 $ 17.11 $ 14.92 $ 15.09
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (c) 0.01(d) (0.11) (0.12) (0.01)
Net realized and unrealized gain (loss) on
investments 1.68 0.88 2.31 (0.11)
------------ ------------ ------------ ------------
Total from investment operations 1.69 0.77 2.19 (0.12)
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income -- -- -- (0.05)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 19.57 $ 17.88 $ 17.11 $ 14.92
Total return (e) 9.45%(f) 4.50% 14.68%(f) (0.77)%(f)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 123 $ 129 $ 112 $ 30
Ratio of expenses to average net assets (g) 1.97%(h) 1.92% 2.61%(h) 2.07%(h)
Ratio of net investment income (loss) to average
net assets (g) 0.09%(h) (0.59)% (1.09)%(h) (0.78)%(h)
Portfolio turnover rate 35%(f) 192% 102%(f) 107%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class D shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Net investment income per share reflects a special dividend which amounted
to $0.08 per share.
(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.
180
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia Common Stock Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31,
CLASS Z SHARES 2005 2004 2003 (a)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 18.12 $ 17.26 $ 14.91
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.11(c)(d) 0.08(c) 0.06(c)
Net realized and unrealized gain
(loss) on investments 1.70 0.88 2.29
------------ ------------ ------------
Total from investment operations 1.81 0.96 2.35
------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.15) (0.10) --
From net realized gains -- -- --
------------ ------------ ------------
Total distributions (0.15) (0.10) --
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 19.78 $ 18.12 $ 17.26
Total return (e) 9.99%(f) 5.58% 15.76%(f)
------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $ 224,972 $ 303,259 $ 427,669
Ratio of expenses to average
net assets (g) 0.97%(h) 0.92% 0.94%(h)
Ratio of net investment income
(loss) to average net assets (g) 1.15%(h) 0.41% 0.55%(h)
Portfolio turnover rate 35%(f) 192% 102%(f)
------------ ------------ ------------
YEAR ENDED DECEMBER 31,
------------------------------------------------------------------------
CLASS Z SHARES 2002 (b) 2001 2000 1999
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 19.97 $ 24.34 $ 28.90 $ 24.40
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.07(c) 0.07 (0.01) 0.03
Net realized and unrealized gain
(loss) on investments (5.05) (4.35) (1.54) 6.25
------------ ------------ ------------ ------------
Total from investment operations (4.98) (4.28) (1.55) 6.28
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.08) (0.07) -- (0.03)
From net realized gains -- (0.02) (3.01) (1.75)
------------ ------------ ------------ ------------
Total distributions (0.08) (0.09) (3.01) (1.78)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 14.91 $ 19.97 $ 24.34 $ 28.90
Total return (e) (24.92)% (17.60)% (5.73)% 25.76%
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $ 416,638 $ 681,397 $ 895,134 $ 959,910
Ratio of expenses to average
net assets (g) 0.86% 0.80% 0.75% 0.77%
Ratio of net investment income
(loss) to average net assets (g) 0.43% 0.32% (0.05)% 0.09%
Portfolio turnover rate 107% 114% 104% 97%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were renamed Class Z shares.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Net investment income per share reflects a special dividend which amounted
to $0.08 per share.
(e) Total return at net asset value assuming all distributions reinvested.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
181
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia Growth Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS A SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 24.93 $ 24.61 $ 20.83 $ 21.52
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (c) 0.10(d) (0.07) (0.07) --(e)
Net realized and unrealized gain (loss) on
investments 2.82 0.39 3.85 (0.69)
------------ ------------ ------------ ------------
Total from investment operations 2.92 0.32 3.78 (0.69)
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.09) -- -- --
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 27.76 $ 24.93 $ 24.61 $ 20.83
Total return (f) 11.73%(g) 1.30% 18.15%(g) (3.21)%(g)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 4,851 $ 4,668 $ 4,229 $ 3,077
Ratio of expenses to average net assets (h) 1.11%(i) 1.12% 1.33%(i) 1.15%(i)
Ratio of net investment income (loss) to
average net assets (h) 0.76%(i) (0.28)% (0.44)%(i) (0.36)%(i)
Portfolio turnover rate 50%(g) 130% 110%(g) 165%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class A shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Net investment income per share reflects a special dividend which amounted
to $0.12 per share.
(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) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS B SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 24.60 $ 24.47 $ 20.82 $ 21.52
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (c) --(d)(e (0.27) (0.19) (0.03)
Net realized and unrealized gain (loss) on
investments 2.79 0.40 3.84 (0.67)
------------ ------------ ------------ ------------
Total from investment operations 2.79 0.13 3.65 (0.70)
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.03) -- -- --
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 27.36 $ 24.60 $ 24.47 $ 20.82
Total return (f) 11.33%(g) 0.53% 17.53%(g) (3.25)%(g)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 2,387 $ 2,254 $ 793 $ 114
Ratio of expenses to average net assets (h) 1.86%(i) 1.87% 2.11%(i) 1.88%(i)
Ratio of net investment income (loss) to average
net assets (h) --%(i)(j) (1.04)% (1.27)%(i) (1.09)%(i)
Portfolio turnover rate 50%(g) 130% 110%(g) 165%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class B shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Net investment income per share reflects a special dividend which amounted
to $0.12 per share.
(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) 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%.
182
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia Growth Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31,
CLASS C SHARES 2005 2004 (a)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 24.54 $ 24.96
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b) --(c)(d) (0.23)
Net realized and unrealized gain (loss) on
investments 2.78 (0.19)
------------ ------------
Total from investment operations 2.78 (0.42)
------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.03) --
------------ ------------
NET ASSET VALUE, END OF PERIOD $ 27.29 $ 24.54
Total return (e)(f) 11.32% (1.68)%
------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 294 $ 199
Ratio of expenses to average net assets (g)(h) 1.86% 1.90%
Ratio of net investment income (loss) to average
net assets (g)(h) 0.03% (1.01)%
Portfolio turnover rate 50%(f) 130%
------------ ------------
(a) Class C shares were initially offered on October 13, 2003. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Net investment income per share reflects a special dividend which amounted
to $0.12 per share.
(d) Rounds to less than $0.01 per share.
(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.
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS D SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 24.62 $ 24.48 $ 20.82 $ 21.52
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) (0.02)(d) (0.27) (0.17) (0.02)
Net realized and unrealized gain (loss) on
investments 2.81 0.41 3.83 (0.68)
------------ ------------ ------------ ------------
Total from investment operations 2.79 0.14 3.66 (0.70)
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.03) -- -- --
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 27.38 $ 24.62 $ 24.48 $ 20.82
Total return (e) 11.32%(f) 0.57% 17.58%(f) (3.25)%(f)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 119 $ 167 $ 294 $ 103
Ratio of expenses to average net assets (g) 1.86%(h) 1.87% 2.02%(h) 1.88%(h)
Ratio of net investment loss to average
net assets (g) (0.14)%(h) (1.04)% (1.15)%(h) (1.09)%(h)
Portfolio turnover rate 50%(f) 130% 110%(f) 165%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class D shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Net investment loss per share reflects a special dividend which amounted to
$0.12 per share.
(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.
183
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia Growth Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS G SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 24.64 $ 24.49 $ 20.83 $ 21.52
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) (0.01)(d) (0.25) (0.16) (0.03)
Net realized and unrealized gain (loss) on
investments 2.80 0.40 3.82 (0.66)
------------ ------------ ------------ ------------
Total from investment operations 2.79 0.15 3.66 (0.69)
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.03) -- -- --
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 27.40 $ 24.64 $ 24.49 $ 20.83
Total return (e) 11.33%(f) 0.61% 17.57%(f) (3.21)%(f)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 13,331 $ 12,996 $ 14,810 $ 13,705
Ratio of expenses to average net assets (g) 1.81%(h) 1.82% 2.00%(h) 1.83%(h)
Ratio of net investment income (loss) to average
net assets (g) 0.04%(h) (0.98)% (1.10)%(h) (1.04)%(h)
Portfolio turnover rate 50%(f) 130% 110%(f) 165%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class G shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Net investment loss per share reflects a special dividend which amounted to
$0.12 per share.
(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.
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31,
CLASS Z SHARES 2005 2004 2003 (a)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 25.09 $ 24.70 $ 20.85
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.13(c)(d) --(c)(e) --(c)(e)
Net realized and unrealized
gain (loss) on investments 2.85 0.39 3.85
------------ ------------ ------------
Total from investment operations 2.98 0.39 3.85
------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.12) -- --
From net realized gains -- -- --
------------ ------------ ------------
Total distributions (0.12) -- --
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 27.95 $ 25.09 $ 24.70
Total return (f) 11.86%(g) 1.58% 18.47%(g)
------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of
period (in thousands) $ 716,652 $ 790,696 $ 909,611
Ratio of expenses to average
net assets (h) 0.86%(i) 0.87% 0.88%(i)
Ratio of net investment income
(loss) to average net assets (h) 0.99%(i) (0.01)% 0.01%(i)
Portfolio turnover rate 50%(g) 130% 110%(g)
------------ ------------ ------------
YEAR ENDED DECEMBER 31,
------------------------------------------------------------------------
CLASS Z SHARES 2002 (b) 2001 2000 1999
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 31.35 $ 40.07 $ 48.91 $ 42.51
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.01)(c) (0.02) (0.08) (0.03)
Net realized and unrealized
gain (loss) on investments (10.49) (8.55) (3.49) 11.09
------------ ------------ ------------ ------------
Total from investment operations (10.50) (8.57) (3.57) 11.06
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income -- -- -- --(e)
From net realized gains -- (0.15) (5.27) (4.66)
------------ ------------ ------------ ------------
Total distributions -- (0.15) (5.27) (4.66)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 20.85 $ 31.35 $ 40.07 $ 48.91
Total return (f) (33.49)% (21.40)% (7.94)% 26.02%
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of
period (in thousands) $ 811,648 $ 1,325,844 $ 1,919,227 $ 2,160,739
Ratio of expenses to average
net assets (h) 0.82% 0.72% 0.65% 0.65%
Ratio of net investment income
(loss) to average net assets (h) (0.03)% (0.07)% (0.18)% (0.07)%
Portfolio turnover rate 165% 122% 114% 118%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were renamed Class Z shares.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Net investment income per share reflects a special dividend which amounted
to $0.12 per share.
(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) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
184
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia International Stock Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS A SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.04 $ 11.34 $ 10.05 $ 10.04
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (c) --(d) 0.01 0.04 (0.02)
Net realized and unrealized gain on investments,
foreign currency and foreign capital gains tax 2.28 1.69 1.25 0.03
------------ ------------ ------------ ------------
Total from investment operations 2.28 1.70 1.29 0.01
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income --(d) -- -- --
------------ ------------ ------------ ------------
REDEMPTION FEES:
Redemption fees added to paid-in-capital --(c)(d) --(c)(d) -- --
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 15.32 $ 13.04 $ 11.34 $ 10.05
Total return (e) 17.51%(f)(g) 14.99%(f) 12.84%(g) 0.10%(g)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 27,675 $ 24,119 $ 21,664 $ 20,178
Ratio of expenses to average net assets (h) 1.28%(i) 1.72% 1.90%(i) 1.86%(i)
Ratio of net investment income (loss) to average
net assets (h) 0.05%(i) 0.10% 0.61%(i) (0.39)% (i)
Waiver 0.13%(i) 0.09% -- --
Portfolio turnover rate 38%(g) 90% 43%(g) 96%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class A shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Rounds to less than $0.01 per share.
(e) Total return at net asset value assuming no initial sales charge or
contingent deferred sales charge.
(f) Had the Investment Advisor not waived a portion of expenses, total return
would have been reduced.
(g) Not annualized.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS B SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.81 $ 11.23 $ 10.02 $ 10.04
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) (0.05) (0.09) (0.03) (0.05)
Net realized and unrealized gain on investments,
foreign currency and foreign capital gains tax 2.24 1.67 1.24 0.03
------------ ------------ ------------ ------------
Total from investment operations 2.19 1.58 1.21 (0.02)
------------ ------------ ------------ ------------
REDEMPTION FEES:
Redemption fees added to paid-in-capital --(c)(d) --(c)(d) -- --
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 15.00 $ 12.81 $ 11.23 $ 10.02
Total return (e)(f) 17.10%(g) 14.07% 12.08%(g) (0.20)%(g)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 11,317 $ 10,221 $ 10,316 $ 10,920
Ratio of expenses to average net assets (h) 2.03%(i) 2.50% 2.98%(i) 3.64%(i)
Ratio of net investment loss to average
net assets (h) (0.70)%(i) (0.69)% (0.47)%(i) (2.17)%(i)
Waiver 0.13%(i) 0.18% 0.11%(i) 0.11%(i)
Portfolio turnover rate 38%(g) 90% 43%(g) 96%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class B shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Rounds to less than $0.01 per share.
(e) Total return at net asset value assuming no contingent deferred sales
charge.
(f) Had the Investment Advisor not waived a portion of expenses, total return
would have been reduced.
(g) Not annualized.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
185
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia International Stock Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31,
CLASS C SHARES 2005 2004 (a)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.86 $ 12.27
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b) (0.05) (0.01)
Net realized and unrealized gain on investments,
foreign currency and foreign capital gains tax 2.24 0.60
------------ ------------
Total from investment operations 2.19 0.59
------------ ------------
REDEMPTION FEES:
Redemption fees added to paid-in-capital (b)(c) -- --
------------ ------------
NET ASSET VALUE, END OF PERIOD $ 15.05 $ 12.86
Total return (d)(e)(f) 17.03% 4.81%
------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 622 $ 632
Ratio of expenses to average net assets (g)(h) 2.03% 2.11%
Ratio of net investment loss to average net
assets (g)(h) (0.70)% (0.05)%
Waiver (h) 0.13% 0.35%
Portfolio turnover rate 38%(f) 90%
------------ ------------
(a) Class C shares were initially offered on October 13, 2003. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Rounds to less than $0.01 per share.
(d) Total return at net asset value assuming no contingent deferred sales
charge.
(e) Had the Investment Advisor not waived a portion of expenses, total return
would have been reduced.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS D SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.91 $ 11.27 $ 10.02 $ 10.04
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (c) (0.05) (0.04) --(d) (0.04)
Net realized and unrealized gain on investments,
foreign currency and foreign capital gains tax 2.25 1.68 1.25 0.02
------------ ------------ ------------ ------------
Total from investment operations 2.20 1.64 1.25 (0.02)
------------ ------------ ------------ ------------
REDEMPTION FEES:
Redemption fees added to paid-in-capital --(c)(d) --(c)(d) -- --
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 15.11 $ 12.91 $ 11.27 $ 10.02
Total return (e)(f) 17.04%(g) 14.55% 12.48%(g) (0.20)%(g)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 750 $ 738 $ 633 $ 542
Ratio of expenses to average net assets (h) 2.03%(i) 2.10% 2.49%(i) 3.48%(i)
Ratio of net investment income (loss) to
average net assets (h) (0.70)%(i) (0.27)% 0.02%(i) (2.01)%(i)
Waiver 0.13%(i) 0.57% 0.75%(i) 0.75%(i)
Portfolio turnover rate 38%(g) 90% 43%(g) 96%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class D shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Rounds to less than $0.01 per share.
(e) Total return at net asset value assuming no contingent deferred sales
charge.
(f) Had the Investment Advisor not waived a portion of expenses, total return
would have been reduced.
(g) Not annualized.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
186
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia International Stock Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31,
CLASS Z SHARES 2005 2004 2003 (a)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.14 $ 11.40 $ 10.05
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.02(c) 0.11(c) 0.07(c)
Net realized and unrealized gain (loss)
on investments, foreign currency
and foreign capital gains tax 2.29 1.67 1.27
------------ ------------ ------------
Total from investment operations 2.31 1.78 1.34
------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.07) (0.04) --
From net realized gains -- -- --
Return of capital -- -- --
------------ ------------ ------------
Total distributions (0.07) (0.04) --
------------ ------------ ------------
REDEMPTION FEES:
Redemption fees added
to paid-in-capital --(c)(d) --(c)(d) 0.01(c)
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 15.38 $ 13.14 $ 11.40
Total return (e) 17.61%(f)(g) 15.65%(f) 13.43%(f)(g)
------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of
period (in thousands) $ 637,601 $ 558,082 $ 248,718
Ratio of expenses to average
net assets (h) 1.03%(i) 1.10% 1.47%(i)
Ratio of net investment income
(loss) to average net assets (h) 0.30%(i) 0.81% 1.03%(i)
Waiver 0.13%(i) 0.18% 0.12%(i)
Portfolio turnover rate 38%(g) 90% 43%(g)
------------ ------------ ------------
YEAR ENDED DECEMBER 31,
------------------------------------------------------------------------
CLASS Z SHARES 2002 (b) 2001 2000 1999
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.03 $ 14.77 $ 22.81 $ 15.45
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) --(c)(d) 0.01 (0.04) (0.05)
Net realized and unrealized gain (loss)
on investments, foreign currency
and foreign capital gains tax (1.94) (2.74) (5.17) 9.00
------------ ------------ ------------ ------------
Total from investment operations (1.94) (2.73) (5.21) 8.95
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.01) (0.01) -- --
From net realized gains -- -- (2.83) (1.59)
Return of capital (0.03) -- -- --
------------ ------------ ------------ ------------
Total distributions (0.04) (0.01) (2.83) (1.59)
------------ ------------ ------------ ------------
REDEMPTION FEES:
Redemption fees added
to paid-in-capital -- -- -- --
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 10.05 $ 12.03 $ 14.77 $ 22.81
Total return (e) (16.10)%(f) (18.47)% (22.64)% 57.93%
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of
period (in thousands) $ 143,332 $ 135,626 $ 175,316 $ 239,223
Ratio of expenses to average
net assets (h) 1.49% 1.56% 1.42% 1.48%
Ratio of net investment income
(loss) to average net assets (h) (0.02)% 0.06% (0.19)% (0.35)%
Waiver 0.12% -- --
Portfolio turnover rate 96% 130% 112% 94%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were renamed Class Z shares.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Rounds to less than $0.01 per share.
(e) Total return at net asset value assuming all distributions reinvested.
(f) Had the Investment Advisor not waived a portion of expenses, total return
would have been reduced.
(g) Not annualized.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
187
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia Mid Cap Growth Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS A SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 16.99 $ 18.09 $ 14.77 $ 15.15
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) (0.08) (0.23) (0.14) (0.02)
Net realized and unrealized gain (loss) on
investments and foreign currency 3.68 (0.87) 3.46 (0.36)
------------ ------------ ------------ ------------
Total from investment operations 3.60 (1.10) 3.32 (0.38)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 20.59 $ 16.99 $ 18.09 $ 14.77
Total return (d)(e) 21.19%(f) (6.08)% 22.48%(f) (2.51)%(f)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 5,547 $ 4,432 $ 4,525 $ 1,180
Ratio of operating expenses to average
net assets (g) 1.27%(h) 1.53% 1.60%(h) 1.49%(h)
Ratio of interest expense to average net assets --%(h)(i) -- -- --
Ratio of total expenses to average net assets (g) 1.27%(h) 1.53% 1.60%(h) 1.49%(h)
Ratio of net investment loss to average net
assets (g) (0.87)%(h) (1.21)% (1.31)%(h) (1.22)%(h)
Waiver 0.05%(h) 0.02% 0.01%(h) 0.01%(h)
Portfolio turnover rate 39%(f) 139% 78%(f) 88%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class A shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Total return at net asset value assuming no initial sales charge or
contingent deferred sales charge.
(e) Had the Investment Advisor not waived a portion of expenses, total return
would have been reduced.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
(i) Rounds to less than 0.01%.
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS B SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 16.75 $ 17.98 $ 14.76 $ 15.15
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) (0.15) (0.36) (0.22) (0.04)
Net realized and unrealized gain (loss) on
investments and foreign currency 3.63 (0.87) 3.44 (0.35)
------------ ------------ ------------ ------------
Total from investment operations 3.48 (1.23) 3.22 (0.39)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 20.23 $ 16.75 $ 17.98 $ 14.76
Total return (d)(e) 20.78%(f) (6.84)% 21.82%(f) (2.57)%(f)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 5,913 $ 5,079 $ 4,242 $ 3,383
Ratio of operating expenses to average
net assets (g) 2.02%(h) 2.29% 2.36%(h) 2.32%(h)
Ratio of interest expense to average net assets --%(h)(i) -- -- --
Ratio of total expenses to average net assets (g) 2.02%(h) 2.29% 2.36%(h) 2.32%(h)
Ratio of net investment loss to average
net assets (g) (1.62)%(h) (1.97)% (2.06)%(h) (2.05)%(h)
Waiver 0.05%(h) 0.10% 0.12%(h) 0.12%(h)
Portfolio turnover rate 39%(f) 139% 78%(f) 88%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class B shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Total return at net asset value assuming no contingent deferred sales
charge.
(e) Had the Investment Advisor not waived a portion of expenses, total return
would have been reduced.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
(i) Rounds to less than 0.01%.
188
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia Mid Cap Growth Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31,
CLASS C SHARES 2005 2004 (a)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 16.79 $ 17.88
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b) (0.15) (0.30)
Net realized and unrealized gain (loss) on
investments and foreign currency 3.63 (0.79)
------------ ------------
Total from investment operations 3.48 (1.09)
------------ ------------
NET ASSET VALUE, END OF PERIOD $ 20.27 $ 16.79
Total return (c)(d)(e) 20.73% (6.10)%
------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 566 $ 501
Ratio of operating expenses to average
net assets (f)(g) 2.02% 2.18%
Ratio of interest expense to average net assets --%(g)(h) --
Ratio of total expenses to average net
assets (f)(g) 2.02% 2.18%
Ratio of net investment loss to average net
assets (f)(g) (1.62)% (1.83)%
Waiver (g) 0.05% 0.08%
Portfolio turnover rate 39%(e) 139%
------------ ------------
(a) Class C shares were initially offered on October 13, 2003. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming no contingent deferred sales
charge.
(d) Had the Investment Advisor not waived a portion of expenses, total return
would have been reduced.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
(h) Rounds to less than 0.01%.
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS D SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 16.77 $ 17.98 $ 14.76 $ 15.15
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) (0.15) (0.34) (0.21) (0.04)
Net realized and unrealized gain (loss) on
investments and foreign currency 3.63 (0.87) 3.43 (0.35)
------------ ------------ ------------ ------------
Total from investment operations 3.48 (1.21) 3.22 (0.39)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 20.25 $ 16.77 $ 17.98 $ 14.76
Total return (d)(e) 20.75%(f) (6.73)% 21.82%(f) (2.57)%(f)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 539 $ 599 $ 737 $ 433
Ratio of operating expenses to average
net assets (g) 2.02%(h) 2.19% 2.27%(h) 2.32%(h)
Ratio of interest expense to average net assets --%(h)(i) -- -- --
Ratio of total expenses to average net assets (g) 2.02%(h) 2.19% 2.27%(h) 2.32%(h)
Ratio of net investment loss to average
net assets (g) (1.62)%(h) (1.87)% (1.97)%(h) (2.05)%(h)
Waiver 0.05%(h) 0.08% 0.09%(h) 0.09%(h)
Portfolio turnover rate 39%(f) 139% 78%(f) 88%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class D shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Total return at net asset value assuming no contingent deferred sales
charge.
(e) Had the Investment Advisor not waived a portion of expenses, total return
would have been reduced.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
(i) Rounds to less than 0.01%.
189
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia Mid Cap Growth Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS G SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 16.70 $ 17.98 $ 14.77 $ 15.15
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) (0.15) (0.41) (0.23) (0.04)
Net realized and unrealized gain (loss) on
investments and foreign currency 3.62 (0.87) 3.44 (0.34)
------------ ------------ ------------ ------------
Total from investment operations 3.47 (1.28) 3.21 (0.38)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 20.17 $ 16.70 $ 17.98 $ 14.77
Total return (d) 20.78%(e)(f) (7.12)%(e) 21.73%(f) (2.51)%(f)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 734 $ 647 $ 806 $ 753
Ratio of operating expenses to average
net assets (g) 1.97%(h) 2.57% 2.47%(h) 2.35%(h)
Ratio of interest expense to average net assets --%(h)(i) -- -- --
Ratio of total expenses to average net assets (g) 1.97%(h) 2.57% 2.47%(h) 2.35%(h)
Ratio of net investment loss to average
net assets (g) (1.57)%(h) (2.25)% (2.17)%(h) (2.08)%(h)
Waiver 0.05%(h) 0.01% -- --
Portfolio turnover rate 39%(f) 139% 78%(f) 88%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class G shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Total return at net asset value assuming no contingent deferred sales
charge.
(e) Had the Investment Advisor not waived a portion of expenses, total return
would have been reduced.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
(i) Rounds to less than 0.01%.
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS T SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 17.03 $ 18.12 $ 14.79 $ 15.15
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) (0.09) (0.22) (0.12) (0.02)
Net realized and unrealized gain (loss) on
investments and foreign currency 3.69 (0.87) 3.45 (0.34)
------------ ------------ ------------ ------------
Total from investment operations 3.60 (1.09) 3.33 (0.36)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 20.63 $ 17.03 $ 18.12 $ 14.79
Total return (d) 21.14%(e)(f) (6.02)%(e) 22.52%(f) (2.38)%(f)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 28,307 $ 25,236 $ 29,920 $ 25,966
Ratio of operating expenses to average net
assets (g) 1.32%(h) 1.50% 1.46%(h) 1.45%(h)
Ratio of interest expense to average net assets --%(h)(i) -- -- --
Ratio of total expenses to average net assets (g) 1.32%(h) 1.50% 1.46%(h) 1.45%(h)
Ratio of net investment loss to average
net assets (g) (0.92)%(h) (1.19)% (1.16)%(h) (1.18)%(h)
Waiver 0.05%(h) 0.01% -- --
Portfolio turnover rate 39%(f) 139% 78%(f) 88%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class T shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Total return at net asset value assuming no initial sales charge or
contingent deferred sales charge.
(e) Had the Investment Advisor not waived a portion of expenses, total return
would have been reduced.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
(i) Rounds to less than 0.01%.
190
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia Mid Cap Growth Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31,
CLASS Z SHARES 2005 2004 2003 (a)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 17.14 $ 18.17 $ 14.79
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.06)(c) (0.14)(c) (0.08)(c)
Net realized and unrealized
gain (loss) on investments
and foreign currency 3.72 (0.89) 3.46
------------ ------------ ------------
Total from investment operations 3.66 (1.03) 3.38
------------ ------------ ------------
LESS DISTRIBUTIONS:
From net realized gains -- -- --
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 20.80 $ 17.14 $ 18.17
Total return (d) 21.35%(e)(f) (5.67)%(e) 22.85%(e)(f)
------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of
period (in thousands) $ 823,299 $ 825,988 $ 998,943
Ratio of operating expenses
to average net assets (g) 1.02%(h) 1.07% 1.09%(h)
Ratio of interest expense to
average net assets --%(h)(i) -- --
Ratio of total expenses to
average net assets (g) 1.02%(h) 1.07% 1.09%(h)
Ratio of net investment loss to
average net assets (g) (0.62)%(h) (0.75)% (0.80)%(h)
Waiver 0.05%(h) 0.05% 0.05%(h)
Portfolio turnover rate 39%(f) 139% 78%(f)
------------ ------------ ------------
YEAR ENDED DECEMBER 31,
------------------------------------------------------------------------
CLASS Z SHARES 2002 (b) 2001 2000 1999
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 19.60 $ 25.99 $ 29.93 $ 23.62
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.13)(c) (0.11) (0.10) (0.16)
Net realized and unrealized
gain (loss) on investments
and foreign currency (4.68) (5.35) 4.45 8.74
------------ ------------ ------------ ------------
Total from investment operations (4.81) (5.46) 4.35 8.58
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net realized gains -- (0.93) (8.29) (2.27)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 14.79 $ 19.60 $ 25.99 $ 29.93
Total return (d) (24.54)%(e) (20.98)% 13.84% 36.33%
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of
period (in thousands) $ 807,342 $ 786,071 $ 1,095,525 $ 918,322
Ratio of operating expenses
to average net assets (g) 1.12% 1.08% 0.99% 1.09%
Ratio of interest expense to
average net assets -- -- -- --
Ratio of total expenses to
average net assets (g) 1.12% 1.08% 0.99% 1.09%
Ratio of net investment loss to
average net assets (g) (0.85)% (0.49)% (0.38)% (0.64)%
Waiver 0.05% -- -- --
Portfolio turnover rate 88% 186% 169% 135%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were renamed Class Z shares.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Total return at net asset value assuming all distributions reinvested.
(e) Had the Investment Advisor not waived a portion of expenses, total return
would have been reduced.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
(i) Rounds to less than 0.01%.
191
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia Small Cap Growth Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31,
CLASS Z SHARES 2005 2004 2003 (a)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 21.32 $ 21.62 $ 16.30
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.12)(c) (0.24)(c) (0.13)(c)
Net realized and unrealized
gain (loss) on investments 3.92 (0.06) 5.45
------------ ------------ ------------
Total from investment operations 3.80 (0.30) 5.32
------------ ------------ ------------
LESS DISTRIBUTIONS:
From net realized gains -- -- --
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 25.12 $ 21.32 $ 21.62
Total return (d) 17.82%(e) (1.39)% 32.64%(e)
------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of
period (in thousands) $ 261,927 $ 543,016 $ 637,616
Ratio of operating expenses to
average net assets (f) 1.20%(g) 1.18% 1.28%(g)
Ratio of interest expense to
average net assets --%(g)(h) -- --
Ratio of total expenses to
average net assets (f) 1.20%(g) 1.18% 1.28%(g)
Ratio of net investment loss to
average net assets (f) (1.02)%(g) (1.01)% (1.09)%(g)
Portfolio turnover rate 70%(e) 118% 79%(e)
------------ ------------ ------------
YEAR ENDED DECEMBER 31,
------------------------------------------------------------------------
CLASS Z SHARES 2002 (b) 2001 2000 1999
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 22.20 $ 25.87 $ 27.26 $ 17.43
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.17)(c) (0.13) (0.10) (0.14)
Net realized and unrealized
gain (loss) on investments (5.73) (3.54) 1.75 10.45
------------ ------------ ------------ ------------
Total from investment operations (5.90) (3.67) 1.65 10.31
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net realized gains -- -- (3.04) (0.48)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 16.30 $ 22.20 $ 25.87 $ 27.26
Total return (d) (26.58)% (14.19)% 5.85% 59.15%
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of
period (in thousands) $ 493,031 $ 617,966 $ 518,970 $ 290,374
Ratio of operating expenses to
average net assets (f) 1.24% 1.23% 1.22% 1.30%
Ratio of interest expense to
average net assets -- -- -- --
Ratio of total expenses to
average net assets (f) 1.24% 1.23% 1.22% 1.30%
Ratio of net investment loss to
average net assets (f) (0.90)% (0.71)% (0.44)% (0.84)%
Portfolio turnover rate 109% 129% 145% 188%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were renamed Class Z shares.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Total return at net asset value assuming all distributions reinvested.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
(h) Rounds to less than 0.01%.
192
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia Real Estate Equity Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS A SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 25.59 $ 21.04 $ 17.80 $ 17.01
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.51 0.77 0.36(d) 0.26
Net realized and unrealized gain on investments 2.10 4.67 3.11(d) 0.78
------------ ------------ ------------ ------------
Total from investment operations 2.61 5.44 3.47 1.04
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.46) (0.70) (0.23) (0.25)
From net realized gains (2.52) (0.19) -- --
------------ ------------ ------------ ------------
Total distributions (2.98) (0.89) (0.23) (0.25)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 25.22 $ 25.59 $ 21.04 $ 17.80
Total return (e) 9.88%(f) 26.42% 19.62%(f) 6.10%(f)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 40,332 $ 32,703 $ 12,364 $ 905
Ratio of expenses to average net assets (g) 1.19%(h) 1.20% 1.55%(h) 1.43%(h)
Ratio of net investment income to average
net assets (g) 3.93%(h) 3.27% 2.70%(d)(h) 4.81%(h)
Portfolio turnover rate 4%(f) 28% 33%(f) 53%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class A shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Effective January 1, 2003, the Fund adopted the policy to reduce cost of
investments for financial statement purposes by the distributions received
in excess of income from Real Estate Investment Trusts. The effect of this
change for the eight months ended August 31, 2003 was to decrease the net
investment income per share by $0.05, increase net realized and unrealized
gain on investments per share by $0.05 and decrease the ratio of net
investment income to average net assets from 3.12% to 2.70%. Per share data
and ratios for periods prior to August 31, 2003 have not been restated to
reflect this change in policy.
(e) Total return at net asset value assuming all distributions reinvested and no
initial sales charge or contingent deferred sales charge.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS B SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 25.60 $ 21.03 $ 17.82 $ 17.01
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.42 0.58 0.24(d) 0.22
Net realized and unrealized gain on investments 2.10 4.70 3.12(d) 0.81
------------ ------------ ------------ ------------
Total from investment operations 2.52 5.28 3.36 1.03
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.36) (0.52) (0.15) (0.22)
From net realized gains (2.52) (0.19) -- --
------------ ------------ ------------ ------------
Total distributions (2.88) (0.71) (0.15) (0.22)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 25.24 $ 25.60 $ 21.03 $ 17.82
Total return (e) 9.51%(f) 25.53% 18.97%(f) 6.09%(f)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 13,534 $ 11,234 $ 4,776 $ 1,074
Ratio of expenses to average net assets (g) 1.94%(h) 1.98% 2.37%(h) 2.18%(h)
Ratio of net investment income to average
net assets (g) 3.20%(h) 2.47% 1.86%(d)(h) 4.06%(h)
Portfolio turnover rate 4%(f) 28% 33%(f) 53%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class B shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Effective January 1, 2003, the Fund adopted the policy to reduce cost of
investments for financial statement purposes by the distributions received
in excess of income from Real Estate Investment Trusts. The effect of this
change for the eight months ended August 31, 2003 was to decrease the net
investment income per share by $0.05, increase net realized and unrealized
gain on investments per share by $0.05 and decrease the ratio of net
investment income to average net assets from 2.28% to 1.86%. Per share data
and ratios for periods prior to August 31, 2003 have not been restated to
reflect this change in policy.
(e) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
193
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia Real Estate Equity Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31,
CLASS C SHARES 2005 2004 (a)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 25.58 $ 21.99
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b) 0.40 0.41
Net realized and unrealized gain on investments 2.12 3.72
------------ ------------
Total from investment operations 2.52 4.13
------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.36) (0.35)
From net realized gains (2.52) (0.19)
------------ ------------
Total distributions (2.88) (0.54)
------------ ------------
NET ASSET VALUE, END OF PERIOD $ 25.22 $ 25.58
Total return (c)(d) 9.51% 18.99%
------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 3,787 $ 2,404
Ratio of expenses to average net assets (e)(f) 1.94% 1.95%
Ratio of net investment income to average
net assets (e)(f) 3.10% 1.93%
Portfolio turnover rate (d) 4% 28%
------------ ------------
(a) Class C shares were initially offered on October 13, 2003. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(d) Not annualized.
(e) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(f) Annualized.
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS D SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 25.59 $ 21.03 $ 17.82 $ 17.01
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.41 0.65 0.27(d) 0.21
Net realized and unrealized gain on investments 2.11 4.63 3.10(d) 0.82
------------ ------------ ------------ ------------
Total from investment operations 2.52 5.28 3.37 1.03
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.36) (0.53) (0.16) (0.22)
From net realized gains (2.52) (0.19) -- --
------------ ------------ ------------ ------------
Total distributions (2.88) (0.72) (0.16) (0.22)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 25.23 $ 25.59 $ 21.03 $ 17.82
Total return (e) 9.51%(f) 25.55% 18.99%(f) 6.09%(f)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 4,280 $ 4,059 $ 3,466 $ 365
Ratio of expenses to average net assets (g) 1.94%(h) 1.96% 2.30%(h) 2.18%(h)
Ratio of net investment income to average
net assets (g) 3.17%(h) 2.81% 2.02%(d)(h) 4.06%(h)
Portfolio turnover rate 4%(f) 28% 33%(f) 53%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class D shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Effective January 1, 2003, the Fund adopted the policy to reduce cost of
investments for financial statement purposes by the distributions received
in excess of income from Real Estate Investment Trusts. The effect of this
change for the eight months ended August 31, 2003 was to decrease the net
investment income per share by $0.05, increase net realized and unrealized
gain on investments per share by $0.05 and decrease the ratio of net
investment income to average net assets from 2.44% to 2.02%. Per share data
and ratios for periods prior to August 31, 2003 have not been restated to
reflect this change in policy.
(e) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
194
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia Real Estate Equity Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31,
CLASS Z SHARES 2005 2004 2003 (a)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 25.60 $ 21.06 $ 17.81
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.55(c) 0.88(c) 0.39(c)(d)
Net realized and unrealized gain
(loss) on investments 2.11 4.62 3.14(d)
------------ ------------ ------------
Total from investment operations 2.66 5.50 3.53
------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.50) (0.77) (0.28)
From net realized gains (2.52) (0.19) --
Return of capital -- -- --
------------ ------------ ------------
Total distributions (3.02) (0.96) (0.28)
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 25.24 $ 25.60 $ 21.06
Total return (e) 10.05%(f) 26.72% 20.01%(f)
------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of
period (in thousands) $ 811,870 $ 872,924 $ 884,747
Ratio of expenses to average
net assets (g) 0.94%(h) 0.97% 1.08%(h)
Ratio of net investment income to
average net assets (g) 4.24%(h) 3.78% 3.09%(d)(h)
Portfolio turnover rate 4%(f) 28% 33%(f)
------------ ------------ ------------
YEAR ENDED DECEMBER 31,
------------------------------------------------------------------------
CLASS Z SHARES 2002 (b) 2001 2000 1999
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 18.04 $ 17.89 $ 14.57 $ 15.76
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.82(c) 0.79 0.81 0.82
Net realized and unrealized gain
(loss) on investments (0.25) 0.15 3.32 (1.19)
------------ ------------ ------------ ------------
Total from investment operations 0.57 0.94 4.13 (0.37)
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.71) (0.72) (0.75) (0.71)
From net realized gains -- -- -- --
Return of capital (0.09) (0.07) (0.06) (0.11)
------------ ------------ ------------ ------------
Total distributions (0.80) (0.79) (0.81) (0.82)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 17.81 $ 18.04 $ 17.89 $ 14.57
Total return (e) 3.12% 5.41% 28.84% (2.45)%
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of
period (in thousands) $ 774,646 $ 621,590 $ 436,764 $ 241,716
Ratio of expenses to average
net assets (g) 0.94% 0.95% 0.96% 0.99%
Ratio of net investment income to
average net assets (g) 5.30% 4.65% 5.16% 5.66%
Portfolio turnover rate 53% 41% 25% 29%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were renamed Class Z shares.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Effective January 1, 2003, the Fund adopted the policy to reduce cost of
investments for financial statement purposes by the distributions received
in excess of income from Real Estate Investment Trusts. The effect of this
change for the eight months ended August 31, 2003 was to decrease the net
investment income per share by $0.05, increase net realized and unrealized
gain on investments per share by $0.05 and decrease the ratio of net
investment income to average net assets from 3.51% to 3.09%. Per share data
and ratios for periods prior to August 31, 2003 have not been restated to
reflect this change in policy.
(e) Total return at net asset value assuming all distributions reinvested.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
195
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia Technology Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS A SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 6.50 $ 5.91 $ 3.79 $ 3.82
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) (0.07) (0.11) (0.04) (0.01)
Net realized and unrealized gain (loss) on
investments, futures contracts and
written options 1.40 0.70 2.16 (0.02)
------------ ------------ ------------ ------------
Total from investment operations 1.33 0.59 2.12 (0.03)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 7.83 $ 6.50 $ 5.91 $ 3.79
Total return (d)(e) 20.46%(f) 9.98% 55.94%(f) (0.79)%(f)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 7,287 $ 2,818 $ 376 $ 1
Ratio of expenses to average net assets (g) 1.90%(h) 1.90% 1.90%(h) 1.76%(h)
Ratio of net investment loss to average net
assets (g) (1.74)%(h) (1.51)% (1.35)%(h) (1.35)%(h)
Reimbursement 0.21%(h) 0.53% 3.06%(h) 1.24%(h)
Portfolio turnover rate 181%(f) 488% 523%(f) 512%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class A shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Total return at net asset value assuming no initial sales charge or
contingent deferred sales charge.
(e) Had the Investment Advisor not reimbursed a portion of expenses, total
return would have been reduced.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS B SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 6.40 $ 5.86 $ 3.78 $ 3.82
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) (0.09) (0.16) (0.07) (0.01)
Net realized and unrealized gain (loss) on
investments, futures contracts and
written options 1.36 0.70 2.15 (0.03)
------------ ------------ ------------ ------------
Total from investment operations 1.27 0.54 2.08 (0.04)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 7.67 $ 6.40 $ 5.86 $ 3.78
Total return (d)(e) 19.84%(f) 9.22% 55.03%(f) (1.05)%(f)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 2,831 $ 2,200 $ 1,246 $ 7
Ratio of expenses to average net assets (g) 2.65%(h) 2.65% 2.65%(h) 2.51%(h)
Ratio of net investment loss to average net
assets (g) (2.49)%(h) (2.30)% (2.11)%(h) (2.10)%(h)
Reimbursement 0.21%(h) 0.48% 2.40%(h) 1.24%(h)
Portfolio turnover rate 181%(f) 488% 523%(f) 512%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class B shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Total return at net asset value assuming no contingent deferred sales
charge.
(e) Had the Investment Advisor not reimbursed a portion of expenses, total
return would have been reduced.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
196
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia Technology Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31,
CLASS C SHARES 2005 2004 (a)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 6.41 $ 6.48
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b) (0.09) (0.14)
Net realized and unrealized gain on
investments, futures contracts and
written options 1.37 0.07
------------ ------------
Total from investment operations 1.28 (0.07)
------------ ------------
NET ASSET VALUE, END OF PERIOD $ 7.69 $ 6.41
Total return (c)(d)(e) 19.97% (1.08)%
------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 1,390 $ 488
Ratio of expenses to average net
assets (f)(g) 2.65% 2.65%
Ratio of net investment loss to average net
assets (f)(g) (2.49)% (2.18)%
Reimbursement (g) 0.21% 0.68%
Portfolio turnover rate 181%(e) 488%
------------ ------------
(a) Class C shares were initially offered on October 13, 2003. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming no contingent deferred sales
charge.
(d) Had the Investment Advisor not reimbursed a portion of expenses, total
return would have been reduced.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS D SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 6.43 $ 5.88 $ 3.78 $ 3.82
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) (0.09) (0.16) (0.07) (0.01)
Net realized and unrealized gain (loss) on
investments, futures contracts and
written options 1.38 0.71 2.17 (0.03)
------------ ------------ ------------ ------------
Total from investment operations 1.29 0.55 2.10 (0.04)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 7.72 $ 6.43 $ 5.88 $ 3.78
Total return (d)(e) 20.06%(f) 9.35% 55.56%(f) (1.05)%(f)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 21 $ 21 $ 15 $ 1
Ratio of expenses to average net assets (g) 2.65%(h) 2.65% 2.65%(h) 2.51%(h)
Ratio of net investment loss to average net
assets (g) (2.49)%(h) (2.31)% (2.13)%(h) (2.10)%(h)
Reimbursement 0.21%(h) 0.77% 4.00%(h) 1.24%(h)
Portfolio turnover rate 181%(f) 488% 523%(f) 512%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class D shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Total return at net asset value assuming no contingent deferred sales
charge.
(e) Had the Investment Advisor not reimbursed a portion of expenses, total
return would have been reduced.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
197
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia Technology Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31,
CLASS Z SHARES 2005 2004 2003 (a)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 6.55 $ 5.93 $ 3.79
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.06)(d) (0.09)(d) (0.04)(d)
Net realized and unrealized gain (loss) on
investments, futures contracts and
written options 1.40 0.71 2.18
------------ ------------ ------------
Total from investment operations 1.34 0.62 2.14
------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income -- -- --
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 7.89 $ 6.55 $ 5.93
Total return (e)(f) 20.46%(g) 10.46% 56.46%(g)
------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 32,053 $ 30,268 $ 19,663
Ratio of expenses to average net assets (h) 1.65%(i) 1.65% 1.65%(i)
Ratio of net investment income (loss) to
average net assets (h) (1.49)%(i) (1.30)% (1.19)%(i)
Reimbursement 0.21%(i) 0.53% 2.73%(i)
Portfolio turnover rate 181%(g) 488% 523%(g)
------------ ------------ ------------
YEAR ENDED DECEMBER 31, PERIOD ENDED
-------------------------------- DECEMBER 31,
CLASS Z SHARES 2002 (b) 2001 2000 (c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 6.13 $ 8.63 $ 10.00
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.06)(d) (0.08) 0.01
Net realized and unrealized gain (loss) on
investments, futures contracts and
written options (2.28) (2.42) (1.37)
------------ ------------ ------------
Total from investment operations (2.34) (2.50) (1.36)
------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income -- -- (0.01)
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 3.79 $ 6.13 $ 8.63
Total return (e)(f) (38.17)% (28.97)% (13.78)%(g)
------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 8,055 $ 10,385 $ 4,327
Ratio of expenses to average net assets (h) 1.65% 1.69% 1.48%(i)
Ratio of net investment income (loss) to
average net assets (h) (1.24)% (1.26)% 0.99%(i)
Reimbursement 1.33% 1.13% 7.49%(i)
Portfolio turnover rate 512% 413% 63%(g)
------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were renamed Class Z shares.
(c) The Fund commenced investment operations on October 27, 2000. Per share
data, total return and portfolio turnover rate reflect activity from that
date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Total return at net asset value assuming all distributions reinvested.
(f) Had the Investment Advisor not reimbursed a portion of expenses, total
return would have been reduced.
(g) Not annualized.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
198
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia Strategic Investor Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS A SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 18.37 $ 15.95 $ 13.13 $ 12.72
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.04 0.03 0.06 0.01
Net realized and unrealized gain on
investments and foreign currency 2.33 2.46 2.76 0.40
------------ ------------ ------------ ------------
Total from investment operations 2.37 2.49 2.82 0.41
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.03) (0.07) -- --
From net realized gains (0.22) -- -- --
------------ ------------ ------------ ------------
Total distributions (0.25) (0.07) -- --
NET ASSET VALUE, END OF PERIOD $ 20.49 $ 18.37 $ 15.95 $ 13.13
Total return (d) 12.91%(e)(f) 15.64%(e) 21.48%(f) 3.22%(f)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 143,707 $ 99,608 $ 60,112 $ 53,526
Ratio of expenses to average net assets (g) 1.22%(h) 1.27% 1.30%(h) 1.21%(h)
Ratio of net investment income to average
net assets (g) 0.38%(h) 0.19% 0.60%(h) 0.64%(h)
Waiver 0.03%(h) 0.01% --
Portfolio turnover rate 39%(f) 106% 68%(f) 188 %
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class A shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Total return at net asset value assuming all distributions reinvested and no
initial sales charge or contingent deferred sales charge.
(e) Had the Investment Advisor not waived a portion of expenses, total return
would have been reduced.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS B SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 18.17 $ 15.82 $ 13.10 $ 12.72
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) (0.03) (0.10) (0.03) (0.01)
Net realized and unrealized gain on
investments and foreign currency 2.30 2.45 2.75 0.39
------------ ------------ ------------ ------------
Total from investment operations 2.27 2.35 2.72 0.38
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net realized gains (0.22) -- -- --
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 20.22 $ 18.17 $ 15.82 $ 13.10
Total return (d)(e) 12.52%(f) 14.85% 20.76%(f) 2.99%(f)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 38,294 $ 22,071 $ 3,398 $ 2,350
Ratio of expenses to average net assets (g) 1.97%(h) 2.02% 2.22%(h) 2.36%(h)
Ratio of net investment loss to average net
assets (g) (0.37)%(h) (0.57)% (0.33)%(h) (0.51)%(h)
Waiver 0.03%(h) 0.14% 0.23%(h) 0.23%(h)
Portfolio turnover rate 39%(f) 106% 68%(f) 188%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class B shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(e) Had the Investment Advisor not waived a portion of expenses, total return
would have been reduced.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
199
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia Strategic Investor Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31,
CLASS C SHARES 2005 2004 (a)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 18.18 $ 16.42
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b) (0.03) (0.09)
Net realized and unrealized gain on
investments and foreign currency 2.29 1.85
------------ ------------
Total from investment operations 2.26 1.76
------------ ------------
LESS DISTRIBUTIONS:
From net realized gains (0.22) --
NET ASSET VALUE, END OF PERIOD $ 20.22 $ 18.18
------------ ------------
Total return (c)(d)(e) 12.45% 10.72%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 30,185 $ 14,821
Ratio of expenses to average net
assets (f)(g) 1.97% 2.05%
Ratio of net investment loss to average net
assets (f)(g) (0.37)% (0.57)%
Waiver (g) 0.03% 0.07%
Portfolio turnover rate 39%(e) 106%
------------ ------------
(a) Class C shares were initially offered on October 13, 2003. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(d) Had the Investment Advisor not waived a portion of expenses, total return
would have been reduced.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS D SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 18.17 $ 15.81 $ 13.11 $ 12.72
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (c) (0.03) (0.08) (0.05) (0.01)
Net realized and unrealized gain on
investments and foreign currency 2.29 2.44 2.75 0.40
------------ ------------ ------------ ------------
Total from investment operations 2.26 2.36 2.70 0.39
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net realized gains (0.22) -- -- --
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 20.21 $ 18.17 $ 15.81 $ 13.11
Total return (d)(e) 12.46%(f) 14.93% 20.59%(f) 3.07%(f)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 650 $ 693 $ 704 $ 355
Ratio of expenses to average net assets (g) 1.97%(h) 1.94% 2.34%(h) 2.28%(h)
Ratio of net investment loss to average net
assets (g) (0.37)%(h) (0.48)% (0.48)%(h) (0.43)%(h)
Waiver 0.03%(h) 0.12% 0.15%(h) 0.15%(h)
Portfolio turnover rate 39%(f) 106% 68%(f) 188%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class D shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(e) Had the Investment Advisor not waived a portion of expenses, total return
would have been reduced.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
200
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia Strategic Investor Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31,
CLASS Z SHARES 2005 2004 2003 (a)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 18.42 $ 15.98 $ 13.14
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.06(d) 0.08(d) 0.08(d)
Net realized and unrealized gain (loss) on
investments and foreign currency 2.34 2.47 2.76
------------ ------------ ------------
Total from investment operations 2.40 2.55 2.84
------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.07) (0.11) --
From net realized gains (0.22) -- --
------------ ------------ ------------
Total distributions (0.29) (0.11) --
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 20.53 $ 18.42 $ 15.98
Total return (e) 13.08%(f)(g) 15.98%(f) 21.61%(f)(g)
------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 288,290 $ 272,178 $ 227,454
Ratio of expenses to average net assets (h) 0.97%(i) 1.02% 1.08%(i)
Ratio of net investment income to average
net assets (h) 0.63%(i) 0.44% 0.82%(i)
Waiver 0.03%(i) 0.03% 0.03%(i)
Portfolio turnover rate 39%(g) 106% 68%(g)
------------ ------------ ------------
YEAR ENDED DECEMBER 31, PERIOD ENDED
-------------------------------- DECEMBER 31,
CLASS Z SHARES 2002 (b) 2001 2000 (c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.52 $ 11.23 $ 10.00
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.10(d) 0.05 0.02
Net realized and unrealized gain (loss) on
investments and foreign currency (1.35) 3.29 1.23
------------ ------------ ------------
Total from investment operations (1.25) 3.34 1.25
------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.11) (0.05) (0.02)
From net realized gains (0.02) -- --
------------ ------------ ------------
Total distributions (0.13) (0.05) (0.02)
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 13.14 $ 14.52 $ 11.23
Total return (e) (8.56)%(f) 29.76% 12.25%(f)(g)
------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 209,610 $ 139,504 $ 9,526
Ratio of expenses to average net assets (h) 1.23% 1.13% 1.34%(i)
Ratio of net investment income to average
net assets (h) 0.62% 0.71% 1.92%(i)
Waiver 0.03% -- 3.97%(i)
Portfolio turnover rate 188% 278% 64%(g)
------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were renamed Class Z shares.
(c) The Fund commenced investment operations on October 27, 2000. Per share
data, total return and portfolio turnover rate reflect activity from that
date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Total return at net asset value assuming all distributions reinvested.
(f) Had the Investment Advisor not waived a portion of expenses, total return
would have been reduced.
(g) Not annualized.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
201
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia Balanced Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS A SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 19.86 $ 19.18 $ 17.52 $ 17.58
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.21(d) 0.29 0.16 0.03
Net realized and unrealized gain on
investments 1.16 0.67 1.64 --(e)
------------ ------------ ------------ ------------
Total from investment operations 1.37 0.96 1.80 0.03
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.22) (0.28) (0.14) (0.09)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 21.01 $ 19.86 $ 19.18 $ 17.52
Total return (f) 6.94%(g) 4.99 10.35%(g) 0.19%(g)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 2,906 $ 2,577 $ 670 $ 146
Ratio of expenses to average net assets (h) 1.03%(i) 1.02% 1.42%(i) 1.17%(i)
Ratio of net investment income to average
net assets (h) 2.10%(i) 1.45% 1.32%(i) 2.03%(i)
Portfolio turnover rate 28%(g) 158% 110%(g) 98%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class A shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Net investment income per share reflects a special dividend which amounted
to $0.06 per share.
(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) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS B SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 19.83 $ 19.16 $ 17.52 $ 17.58
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.14(d) 0.14 0.07 0.02
Net realized and unrealized gain (loss)
on investments 1.16 0.66 1.65 (0.01)
------------ ------------ ------------ ------------
Total from investment operations 1.30 0.80 1.72 0.01
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.15) (0.13) (0.08) (0.07)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 20.98 $ 19.83 $ 19.16 $ 17.52
Total return (e) 6.55%(f) 4.17% 9.83%(f) 0.06%(f)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 7,837 $ 7,286 $ 3,349 $ 608
Ratio of expenses to average net assets (g) 1.78%(h) 1.77% 2.17%(h) 1.92%(h)
Ratio of net investment income to average
net assets (g) 1.35%(h) 0.71% 0.59%(h) 1.28%(h)
Portfolio turnover rate 28%(f) 158% 110%(f) 98%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class B shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Net investment income per share reflects a special dividend which amounted
to $0.06 per share.
(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.
202
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia Balanced Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31,
CLASS C SHARES 2005 2004 (a)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 19.83 $ 19.59
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b) 0.14(c) 0.13
Net realized and unrealized gain on
investments 1.16 0.23
------------ ------------
Total from investment operations 1.30 0.36
------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.15) (0.12)
------------ ------------
NET ASSET VALUE, END OF PERIOD $ 20.98 $ 19.83
Total return (d)(e) 6.55% 1.82%
------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 842 $ 730
Ratio of expenses to average net
assets (f)(g) 1.78% 1.80%
Ratio of net investment income to average
net assets (f)(g) 1.35% 0.72%
Portfolio turnover rate 28%(e) 158%
------------ ------------
(a) Class C shares were initially offered on October 13, 2003. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Net investment income per share reflects a special dividend which amounted
to $0.06 per share.
(d) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS D SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 19.82 $ 19.17 $ 17.51 $ 17.58
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.14(d) 0.15 0.11 0.02
Net realized and unrealized gain (loss) on
investments 1.17 0.65 1.64 (0.02)
------------ ------------ ------------ ------------
Total from investment operations 1.31 0.80 1.75 --
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.15) (0.15) (0.09) (0.07)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 20.98 $ 19.82 $ 19.17 $ 17.51
Total return (e) 6.61%(f) 4.14% 10.01%(f) 0.01%(f)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 329 $ 361 $ 770 $ 446
Ratio of expenses to average net assets (g) 1.78%(h) 1.77% 1.87%(h) 1.92%(h)
Ratio of net investment income to average
net assets (g) 1.35%(h) 0.74% 0.89%(h) 1.28%(h)
Portfolio turnover rate 28%(f) 158% 110%(f) 98%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class D shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Net investment income per share reflects a special dividend which amounted
to $0.06 per share.
(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.
203
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia Balanced Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31,
CLASS Z SHARES 2005 2004 2003 (a)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 19.84 $ 19.19 $ 17.51
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.24(c)(d) 0.35(c) 0.24(c)
Net realized and unrealized gain
(loss) on investments 1.17 0.66 1.64
------------ ------------ ------------
Total from investment operations 1.41 1.01 1.88
------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.25) (0.36) (0.20)
From net realized gains -- -- --
------------ ------------ ------------
Total distributions (0.25) (0.36) (0.20)
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 21.00 $ 19.84 $ 19.19
Total return (f) 7.13%(g) 5.27% 10.81%(g)
------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $ 373,256 $ 483,746 $ 640,402
Ratio of expenses to average
net assets (h) 0.78%(i) 0.77% 0.77%(i)
Ratio of net investment income
to average net assets (h) 2.35%(i) 1.73% 2.03%(i)
Portfolio turnover rate 28%(g) 158% 110%(g)
------------ ------------ ------------
YEAR ENDED DECEMBER 31,
------------------------------------------------------------------------
CLASS Z SHARES 2002 (b) 2001 2000 1999
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 20.67 $ 22.96 $ 24.72 $ 23.17
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.47(c) 0.57(e) 0.67 0.69
Net realized and unrealized gain
(loss) on investments (3.13) (2.27)(e) (0.41) 2.21
------------ ------------ ------------ ------------
Total from investment operations (2.66) (1.70) 0.26 2.90
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.50) (0.59) (0.68) (0.69)
From net realized gains -- -- (1.34) (0.66)
------------ ------------ ------------ ------------
Total distributions (0.50) (0.59) (2.02) (1.35)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 17.51 $ 20.67 $ 22.96 $ 24.72
Total return (f) (12.97)% (7.40)% 0.82% 12.70%
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $ 668,290 $ 983,749 $ 1,126,854 $ 1,040,940
Ratio of expenses to average
net assets (h) 0.70% 0.67% 0.65% 0.66%
Ratio of net investment income
to average net assets (h) 2.50% 2.70%(e) 2.73% 2.85%
Portfolio turnover rate 98% 111% 105% 133%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were renamed Class Z shares.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Net investment income per share reflects a special dividend which amounted
to $0.06 per share.
(e) Effective January 1, 2001, the Fund adopted the provisions of the AICPA
Audit and Accounting Guide for Investment Companies and began amortizing
premium and accreting discount on all debt securities. The effect of this
change for the year ended December 31, 2001 was to decrease net investment
income per share by $0.01, decrease net realized and unrealized loss per
share by $0.01 and decrease the ratio of net investment income to average
net assets from 2.73% to 2.70%. Per share data and ratios for periods prior
to December 31, 2001 have not been restated to reflect this change in
presentation.
(f) Total return at net asset value assuming all distributions reinvested.
(g) Not annualized.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
204
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia Short Term Bond Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS A SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 8.64 $ 8.62 $ 8.67 $ 8.63
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.11 0.17 0.10 0.04
Net realized and unrealized gain (loss) on
investments and futures contracts (0.06) 0.02 (0.03) 0.04
------------ ------------ ------------ ------------
Total from investment operations 0.05 0.19 0.07 0.08
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.11) (0.17) (0.12) (0.04)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 8.58 $ 8.64 $ 8.62 $ 8.67
Total return (d)(e) 0.54%(f) 2.25% 0.82%(f) 0.94%(f)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 24,089 $ 28,146 $ 37,261 $ 5,543
Ratio of expenses to average net assets (g) 0.89%(h) 0.91% 1.00%(h) 1.00%(h)
Ratio of net investment income to average
net assets (g) 2.48%(h) 2.00% 1.78%(h) 3.53%(h)
Reimbursement 0.01%(h) 0.05% 0.05%(h) 0.02%(h)
Portfolio turnover rate 18%(f) 77% 137%(f) 182%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class A shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Total return at net asset value assuming all distributions reinvested and no
initial sales charge or contingent deferred sales charge.
(e) Had the Investment Advisor not reimbursed a portion of expenses, total
return would have been reduced.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS B SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 8.64 $ 8.62 $ 8.67 $ 8.63
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.07 0.11 0.07 0.03
Net realized and unrealized gain (loss) on
investments and futures contracts (0.06) 0.01 (0.04) 0.04
------------ ------------ ------------ ------------
Total from investment operations 0.01 0.12 0.03 0.07
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.07) (0.10) (0.08) (0.03)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 8.58 $ 8.64 $ 8.62 $ 8.67
Total return (d)(e) 0.16%(f) 1.44% 0.35%(f) 0.77%(f)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 22,109 $ 25,125 $ 26,965 $ 6,261
Ratio of expenses to average net assets (g) 1.64%(h) 1.66% 1.75%(h) 1.75%(h)
Ratio of net investment income to average
net assets (g) 1.73%(h) 1.25% 1.16%(h) 2.78%(h)
Reimbursement 0.01%(h) 0.08% 0.15%(h) 0.04%(h)
Portfolio turnover rate 18%(f) 77% 137%(f) 182%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class B shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(e) Had the Investment Advisor not reimbursed a portion of expenses, total
return would have been reduced.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
205
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia Short Term Bond Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31,
CLASS C SHARES 2005 2004 (a)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 8.64 $ 8.67
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b) 0.10 0.15
Net realized and unrealized loss on
investments and futures contracts (0.06) (0.04)
------------ ------------
Total from investment operations 0.04 0.11
------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.10) (0.14)
------------ ------------
NET ASSET VALUE, END OF PERIOD $ 8.58 $ 8.64
Total return (c)(d)(e) 0.47% 1.27%
------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 3,121 $ 3,128
Ratio of expenses to average net
assets (f)(g) 1.04% 1.06%
Ratio of net investment income to average
net assets (f)(g) 2.33% 1.88%
Reimbursement (g) 0.01% 0.05%
Waiver (g)(h) 0.60% 0.60%
Portfolio turnover rate 18%(e) 77%
------------ ------------
(a) Class C shares were initially offered on October 13, 2003. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(d) Had the Investment Advisor/Distributor not waived or reimbursed a portion of
expenses, total return would have been reduced.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
(h) Amounts represent voluntary waivers of service and distribution fees.
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS D SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 8.64 $ 8.62 $ 8.67 $ 8.63
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.10 0.16 0.10 0.04
Net realized and unrealized gain (loss) on
investments and futures contracts (0.06) 0.02 (0.04) 0.04
------------ ------------ ------------ ------------
Total from investment operations 0.04 0.18 0.06 0.08
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.10) (0.16) (0.11) (0.04)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 8.58 $ 8.64 $ 8.62 $ 8.67
Total return (d)(e) 0.47%(f) 2.08% 0.72%(f) 0.88%(f)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 7,600 $ 9,809 $ 18,512 $ 5,223
Ratio of expenses to average net assets (g) 1.04%(h) 1.06% 1.15%(h) 1.15%(h)
Ratio of net investment income to average
net assets (g) 2.33%(h) 1.85% 1.71%(h) 3.38%(h)
Reimbursement 0.01%(h) 0.03% 0.18%(h) 0.04%(h)
Waiver (i) 0.60%(h) 0.60% 0.60%(h) 0.60%(h)
Portfolio turnover rate 18%(f) 77% 137%(f) 182%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class D shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(e) Had the Investment Advisor/Distributor not waived or reimbursed a portion of
expenses, total return would have been reduced.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
(i) Amounts represent voluntary waivers of service and distribution fees.
206
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia Short Term Bond Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS G SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 8.64 $ 8.62 $ 8.67 $ 8.63
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.08 0.12 0.09 0.03
Net realized and unrealized gain (loss) on
investments and futures contracts (0.06) 0.02 (0.05) 0.04
------------ ------------ ------------ ------------
Total from investment operations 0.02 0.14 0.04 0.07
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.08) (0.12) (0.09) (0.03)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 8.58 $ 8.64 $ 8.62 $ 8.67
Total return (d)(e) 0.26%(f) 1.65% 0.47%(f) 0.85%(f)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 881 $ 1,056 $ 1,614 $ 1,874
Ratio of expenses to average net assets (g) 1.44%(h) 1.46% 1.55%(h) 1.55%(h)
Ratio of net investment income to average
net assets (g) 1.93%(h) 1.44% 1.58%(h) 2.98%(h)
Reimbursement 0.01%(h) 0.16% 0.10%(h) 0.05%(h)
Portfolio turnover rate 18%(f) 77% 137%(f) 182%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class G shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(e) Had the Investment Advisor/Distributor not reimbursed a portion of expenses,
total return would have been reduced.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS T SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 8.64 $ 8.62 $ 8.67 $ 8.63
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.11 0.18 0.13 0.04
Net realized and unrealized gain (loss) on
investments and futures contracts (0.06) 0.02 (0.05) 0.04
------------ ------------ ------------ ------------
Total from investment operations 0.05 0.20 0.08 0.08
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.11) (0.18) (0.13) (0.04)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 8.58 $ 8.64 $ 8.62 $ 8.67
Total return (d)(e) 0.59%(f) 2.31% 0.93%(f) 0.95%(f)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 19,466 $ 21,160 $ 28,230 $ 30,859
Ratio of expenses to average net assets (g) 0.79%(h) 0.81% 0.90%(h) 0.90%(h)
Ratio of net investment income to average
net assets (g) 2.58%(h) 2.10% 2.25%(h) 3.63%(h)
Reimbursement 0.01%(h) 0.05% 0.04%(h) 0.02%(h)
Portfolio turnover rate 18%(f) 77% 137%(f) 182%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class T shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Total return at net asset value assuming all distributions reinvested and no
initial sales charge or contingent deferred sales charge.
(e) Had the Investment Advisor/Distributor not reimbursed a portion of expenses,
total return would have been reduced.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
207
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia Short Term Bond Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31,
CLASS Z SHARES 2005 2004 2003 (a)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 8.64 $ 8.62 $ 8.67
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.12(c) 0.20(c) 0.14(c)
Net realized and unrealized gain
(loss) on investments and
futures contracts (0.06) 0.01 (0.05)
------------ ------------ ------------
Total from investment operations 0.06 0.21 0.09
------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.12) (0.19) (0.14)
From net realized gains -- -- --
------------ ------------ ------------
Total distributions (0.12) (0.19) (0.14)
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 8.58 $ 8.64 $ 8.62
Total return (f) 0.66%(g)(h) 2.51%(g) 1.06%(g)(h)
------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $ 415,886 $ 437,074 $ 436,593
Ratio of expenses to average
net assets (i) 0.64%(j) 0.66% 0.66%(j)
Ratio of net investment income
to average net assets (i) 2.73%(j) 2.27% 2.36%(j)
Reimbursement 0.01%(j) 0.05% 0.07%(j)
Portfolio turnover rate 18%(h) 77% 137%(h)
------------ ------------ ------------
YEAR ENDED DECEMBER 31,
------------------------------------------------------------------------
CLASS Z SHARES 2002 (b) 2001 2000 1999
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 8.55 $ 8.36 $ 8.20 $ 8.39
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.32(c) 0.46(d) 0.42 0.33
Net realized and unrealized gain
(loss) on investments and
futures contracts 0.14 0.21(d) 0.16 (0.18)
------------ ------------ ------------ ------------
Total from investment operations 0.46 0.67 0.58 0.15
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.34) (0.46) (0.42) (0.33)
From net realized gains --(e) (0.02) -- (0.01)
------------ ------------ ------------ ------------
Total distributions (0.34) (0.48) (0.42) (0.34)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 8.67 $ 8.55 $ 8.36 $ 8.20
Total return (f) 5.56% 8.07%(g) 7.26%(g) 1.80%
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $ 317,588 $ 62,930 $ 35,856 $ 38,072
Ratio of expenses to average
net assets (i) 0.67% 0.75% 0.88% 0.91%
Ratio of net investment income
to average net assets (i) 3.86% 5.29%(d) 5.09% 4.09%
Reimbursement -- 0.16% 0.02% --
Portfolio turnover rate 182% 137% 147% 211%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were renamed Class Z shares.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Effective January 1, 2001, the Fund adopted the provisions of the AICPA
Audit and Accounting Guide for Investment Companies and began amortizing
premium and accreting discount on all debt securities. The effect of this
change for the year ended December 31, 2001 was to increase the ratio of net
investment income to average net assets from 5.26% to 5.29%. The impact to
net investment income and net realized and unrealized gain per share was
less than $0.01. Per share data and ratios for periods prior to December 31,
2001 have not been restated to reflect this change in presentation.
(e) Rounds to less than $0.01 per share.
(f) Total return at net asset value assuming all distributions reinvested.
(g) Had the Investment Advisor not reimbursed a portion of expenses, total
return would have been reduced.
(h) Not annualized.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
208
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia Fixed Income Securities Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS A SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.49 $ 13.34 $ 13.52 $ 13.42
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.24 0.50 0.26 0.11
Net realized and unrealized gain (loss) on
investments (0.05) 0.17 (0.14) 0.08
------------ ------------ ------------ ------------
Total from investment operations 0.19 0.67 0.12 0.19
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.26) (0.52) (0.30) (0.09)
From net realized gains (0.14) -- -- --
------------ ------------ ------------ ------------
Total distributions (0.40) (0.52) (0.30) (0.09)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 13.28 $ 13.49 $ 13.34 $ 13.52
Total return (d) 1.41%(e) 5.13% 0.84%(e) 1.41%(e)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 12,184 $ 10,707 $ 7,503 $ 945
Ratio of expenses to average net assets (f) 1.10%(g) 1.05% 1.44%(g) 0.92%(g)
Ratio of net investment income to average
net assets (f) 3.67%(g) 3.70% 2.84%(g) 4.78%(g)
Portfolio turnover rate 15%(e) 124% 161%(e) 103%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class A shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Total return at net asset value assuming all distributions reinvested and no
initial sales charge or contingent deferred sales charge.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS B SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.49 $ 13.34 $ 13.52 $ 13.42
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.20 0.40 0.20 0.09
Net realized and unrealized gain (loss) on
investments (0.06) 0.17 (0.15) 0.08
------------ ------------ ------------ ------------
Total from investment operations 0.14 0.57 0.05 0.17
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.21) (0.42) (0.23) (0.07)
From net realized gains (0.14) -- -- --
------------ ------------ ------------ ------------
Total distributions (0.35) (0.42) (0.23) (0.07)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 13.28 $ 13.49 $ 13.34 $ 13.52
Total return (d) 1.04%(e) 4.33% 0.34%(e) 1.27%(e)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 4,027 $ 4,334 $ 4,410 $ 1,466
Ratio of expenses to average net assets (f) 1.85%(g) 1.82% 2.10%(g) 1.71%(g)
Ratio of net investment income to average
net assets (f) 2.92%(g) 2.94% 2.22%(g) 3.99%(g)
Portfolio turnover rate 15%(e) 124% 161%(e) 103%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class B shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
209
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia Fixed Income Securities Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31,
CLASS C SHARES 2005 2004 (a)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.49 $ 13.50
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b) 0.20 0.37
Net realized and unrealized gain (loss) on
investments (0.05) 0.02
------------ ------------
Total from investment operations 0.15 0.39
------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.22) (0.40)
From net realized gains (0.14) --
------------ ------------
Total distributions (0.36) (0.40)
------------ ------------
NET ASSET VALUE, END OF PERIOD $ 13.28 $ 13.49
Total return (c)(d)(e) 1.11% 2.94%
------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 221 $ 158
Ratio of expenses to average net
assets (f)(g) 1.70% 1.64%
Ratio of net investment income to average
net assets (f)(g) 3.07% 3.09%
Waiver (g)(h) 0.15% 0.15%
Portfolio turnover rate 15%(e) 124%
------------ ------------
(a) Class C shares were initially offered on October 13, 2003. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(d) Had the Distributor not waived a portion of expenses, total return would
have been reduced.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
(h) Amounts represent voluntary waiver of service and distribution fees.
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS D SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.49 $ 13.34 $ 13.52 $ 13.42
------------ ------------ ------------ ------------
Income from investment operations:
Net investment income (c) 0.21 0.42 0.22 0.09
Net realized and unrealized gain (loss) on
investments (0.06) 0.17 (0.15) 0.08
------------ ------------ ------------ ------------
Total from investment operations 0.15 0.59 0.07 0.17
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.22) (0.44) (0.25) (0.07)
From net realized gains (0.14) -- -- --
------------ ------------ ------------ ------------
Total distributions (0.36) (0.44) (0.25) (0.07)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 13.28 $ 13.49 $ 13.34 $ 13.52
Total return (d)(e) 1.11%(f) 4.51% 0.51%(f) 1.30%(f)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 1,496 $ 1,745 $ 2,632 $ 427
Ratio of expenses to average net assets (g) 1.70%(h) 1.65% 1.79%(h) 1.58%(h)
Ratio of net investment income to average
net assets (g) 3.07%(h) 3.11% 2.44%(h) 4.12%(h)
Waiver (i) 0.15%(h) 0.15% 0.15%(h) 0.15%(h)
Portfolio turnover rate 15%(f) 124% 161%(f) 103%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class D shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(e) Had the Distributor not waived a portion of expenses, total return would
have been reduced.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
(i) Amounts represent voluntary waiver of service and distribution fees.
210
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia Fixed Income Securities Fund
FOR A FUND SHARE OUTSTANDING THROUGH/HOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31,
CLASS Z SHARES 2005 2004 2003 (a)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.49 $ 13.34 $ 13.52
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.26(c) 0.53(c) 0.33(c)
Net realized and unrealized gain
(loss) on investments (0.06) 0.18 (0.16)
------------ ------------ ------------
Total from investment operations 0.20 0.71 0.17
------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.27) (0.56) (0.35)
From net realized gains (0.14) -- --
------------ ------------ ------------
Total distributions (0.41) (0.56) (0.35)
NET ASSET VALUE, END OF PERIOD $ 13.28 $ 13.49 $ 13.34
Total return (f) 1.51%(g) 5.40% 1.26%(g)
------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $ 265,127 $ 324,325 $ 506,046
Ratio of expenses to average
net assets (h) 0.85%(i) 0.80% 0.77%(i)
Ratio of net investment income
to average net assets (h) 3.92%(i) 3.96% 3.66%(i)
Portfolio turnover rate 15%(g) 124% 161%(g)
------------ ------------ ------------
YEAR ENDED DECEMBER 31,
------------------------------------------------------------------------
2002 (b) 2001 2000 1999
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.22 $ 12.97 $ 12.44 $ 13.42
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.67(c) 0.77(d) 0.82 0.78
Net realized and unrealized gain
(loss) on investments 0.31 0.26(d) 0.53 (0.98)
------------ ------------ ------------ ------------
Total from investment operations 0.98 1.03 1.35 (0.20)
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.68) (0.78) (0.82) (0.78)
From net realized gains -- -- -- --(e)
------------ ------------ ------------ ------------
Total distributions (0.68) (0.78) (0.82) (0.78)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 13.52 $ 13.22 $ 12.97 $ 12.44
Total return (f) 7.65% 8.13% 11.27% (1.50)%
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $ 547,524 $ 465,743 $ 378,799 $ 397,147
Ratio of expenses to average
net assets (h) 0.67% 0.66% 0.66% 0.64%
Ratio of net investment income
to average net assets (h) 5.03% 5.83%(d) 6.53% 6.03%
Portfolio turnover rate 103% 110% 105% 155%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were renamed Class Z shares.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Effective January 1, 2001, the Fund adopted the provisions of the AICPA
Audit and Accounting Guide for Investment Companies and began amortizing
premium and accreting discount on all debt securities. The effect of this
change for the year ended December 31, 2001 was to decrease net investment
income per share by $0.01, increase net realized and unrealized gain per
share by $0.01 and decrease the ratio of net investment income to average
net assets from 5.92% to 5.83%. Per share data and ratios for periods prior
to December 31, 2001 have not been restated to reflect this change in
presentation.
(e) Rounds to less than $0.01 per share.
(f) Total return at net asset value assuming all distributions reinvested.
(g) Not annualized.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
211
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia National Municipal Bond Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS A SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.30 $ 10.11 $ 10.28 $ 10.22
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.16 0.34 0.24 0.06
Net realized and unrealized gain (loss)
on investments (0.06) 0.28 (0.16) 0.10
------------ ------------ ------------ ------------
Total from investment operations 0.10 0.62 0.08 0.16
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.16) (0.35) (0.24) (0.06)
From net realized gains (0.09) (0.08) (0.01) (0.04)
------------ ------------ ------------ ------------
Total distributions (0.25) (0.43) (0.25) (0.10)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 10.15 $ 10.30 $ 10.11 $ 10.28
Total return (d)(e) 1.00%(f) 6.22% 0.75%(f) 1.59%(f)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 1,528 $ 1,286 $ 398 $ 67
Ratio of expenses to average net assets (g) 0.90%(h) 0.90% 0.90%(h) 0.90%(h)
Ratio of net investment income to average
net assets (g) 3.10%(h) 3.35% 3.49%(h) 3.85%(h)
Reimbursement 1.44%(h) 1.59% 2.87%(h) 0.56%(h)
Portfolio turnover rate 11%(f) 22% 12%(f) 43%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class A shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Total return at net asset value assuming all distributions reinvested and no
initial sales charge or contingent deferred sales charge.
(e) Had the Investment Advisor not reimbursed a portion of expenses, total
return would have been reduced.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS B SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.30 $ 10.11 $ 10.28 $ 10.22
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.12 0.27 0.19 0.05
Net realized and unrealized gain (loss)
on investments (0.06) 0.27 (0.16) 0.10
------------ ------------ ------------ ------------
Total from investment operations 0.06 0.54 0.03 0.15
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.12) (0.27) (0.19) (0.05)
From net realized gains (0.09) (0.08) (0.01) (0.04)
------------ ------------ ------------ ------------
Total distributions (0.21) (0.35) (0.20) (0.09)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 10.15 $ 10.30 $ 10.11 $ 10.28
Total return (d)(e) 0.63%(f) 5.44% 0.25%(f) 1.47%(f)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 766 $ 762 $ 593 $ 72
Ratio of expenses to average net assets (g) 1.65%(h) 1.65% 1.65%(h) 1.65%(h)
Ratio of net investment income to average
net assets (g) 2.40%(h) 2.67% 2.77%(h) 3.10%(h)
Reimbursement 1.44%(h) 1.51% 2.82%(h) 0.56%(h)
Portfolio turnover rate 11%(f) 22% 12%(f) 43%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class B shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(e) Had the Investment Advisor not reimbursed a portion of expenses, total
return would have been reduced.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
212
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia National Municipal Bond Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31,
CLASS C SHARES 2005 2004 (a)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.30 $ 10.26
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b) 0.14 0.27
Net realized and unrealized gain (loss)
on investments (0.06) 0.12
------------ ------------
Total from investment operations 0.08 0.39
------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.14) (0.27)
From net realized gains (0.09) (0.08)
------------ ------------
Total distributions (0.23) (0.35)
------------ ------------
NET ASSET VALUE, END OF PERIOD $ 10.15 $ 10.30
Total return (c)(d)(e) 0.80% 3.89%
------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 355 $ 363
Ratio of expenses to average net assets (f)(g) 1.30% 1.30%
Ratio of net investment income to average net
assets (f)(g) 2.75% 2.96%
Reimbursement (g) 1.44% 1.70%
Waiver (g)(h) 0.35% 0.35%
Portfolio turnover rate 11%(e) 22%
------------ ------------
(a) Class C shares were initially offered on October 13, 2003. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(d) Had the Investment Advisor/Distributor not waived or reimbursed a portion of
expenses, total return would have been reduced.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
(h) Amounts represent voluntary waivers of service and distribution fees.
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS D SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.30 $ 10.11 $ 10.28 $ 10.22
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.14 0.31 0.21 0.05
Net realized and unrealized gain (loss)
on investments (0.06) 0.27 (0.16) 0.10
------------ ------------ ------------ ------------
Total from investment operations 0.08 0.58 0.05 0.15
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.14) (0.31) (0.21) (0.05)
From net realized gains (0.09) (0.08) (0.01) (0.04)
------------ ------------ ------------ ------------
Total distributions (0.23) (0.39) (0.22) (0.09)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 10.15 $ 10.30 $ 10.11 $ 10.28
Total return (d)(e) 0.80%(f) 5.79% 0.47%(f) 1.51%(f)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 259 $ 433 $ 443 $ 50
Ratio of expenses to average net assets (g) 1.30%(h) 1.30% 1.30%(h) 1.30%(h)
Ratio of net investment income to average
net assets (g) 2.75%(h) 3.02% 3.00%(h) 3.45%(h)
Reimbursement 1.44%(h) 1.43% 2.86%(h) 0.56%(h)
Waiver (i) 0.35%(h) 0.35% 0.35%(h) 0.35%(h)
Portfolio turnover rate 11%(f) 22% 12%(f) 43%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class D shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(e) Had the Investment Advisor/Distributor not waived or reimbursed a portion of
expenses, total return would have been reduced.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
(i) Amounts represent voluntary waivers of service and distribution fees.
213
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia National Municipal Bond Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31,
CLASS Z SHARES 2005 2004 2003 (a)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.30 $ 10.11 $ 10.28
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.17(d) 0.38(d) 0.27(d)
Net realized and unrealized gain
(loss) on investments (0.06) 0.26 (0.17)
------------ ------------ ------------
Total from investment operations 0.11 0.64 0.10
------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.17) (0.37) (0.26)
From net realized gains (0.09) (0.08) (0.01)
------------ ------------ ------------
Total distributions (0.26) (0.45) (0.27)
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 10.15 $ 10.30 $ 10.11
Total return (f)(g) 1.12%(h) 6.47% 1.00%(h)
------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $ 8,044 $ 11,967 $ 14,349
Ratio of expenses to average
net assets (i) 0.65%(j) 0.65% 0.65%(j)
Ratio of net investment income
to average net assets (i) 3.39%(j) 3.68% 3.86%(j)
Reimbursement 1.44%(j) 1.40% 1.90%(j)
Portfolio turnover rate 11%(h) 22% 12%(h)
------------ ------------ ------------
YEAR ENDED DECEMBER 31,
------------------------------------------------------------------------
2002 (b) 2001 2000 1999(c)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.77 $ 9.82 $ 9.28 $ 10.00
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.41(d) 0.44(e) 0.44 0.34
Net realized and unrealized gain
(loss) on investments 0.55 (0.03)(e) 0.54 (0.72)
------------ ------------ ------------ ------------
Total from investment operations 0.96 0.41 0.98 (0.38)
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.41) (0.44) (0.44) (0.34)
From net realized gains (0.04) (0.02) -- --
------------ ------------ ------------ ------------
Total distributions (0.45) (0.46) (0.44) (0.34)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 10.28 $ 9.77 $ 9.82 $ 9.28
Total return (f)(g) 10.04% 4.16% 10.87% (3.93)%(h)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $ 16,470 $ 13,769 $ 10,898 $ 10,135
Ratio of expenses to average
net assets (i) 0.65% 0.65% 0.65% 0.65%(j)
Ratio of net investment income
to average net assets (i) 4.10% 4.44%(e) 4.68% 4.21%(j)
Reimbursement 0.50% 0.66% 0.64% 1.07%(j)
Portfolio turnover rate
43% 20% 21% 12%(h)
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were renamed Class Z shares.
(c) The Fund commenced investment operations on February 10, 1999. Per share
data, total return and portfolio turnover rate reflect activity from that
date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Effective January 1, 2001, the Fund adopted the provisions of the AICPA
Audit and Accounting Guide for Investment Companies and began amortizing
premium and accreting discount on all debt securities. The effect of this
change for the year ended December 31, 2001 was to decrease the ratio of net
investment income to average net assets from 4.47% to 4.44%. The impact to
net investment income and net realized and unrealized loss per share was
less than $0.01. Per share data and ratios for periods prior to December 31,
2001 have not been restated to reflect this change in presentation.
(f) Total return at net asset value assuming all distributions reinvested.
(g) Had the Investment Advisor not reimbursed a portion of expenses, total
return would have been reduced.
(h) Not annualized.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
214
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia Oregon Municipal Bond Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS A SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.45 $ 12.25 $ 12.50 $ 12.52
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.23 0.46 0.29 0.08
Net realized and unrealized gain (loss)
on investments (0.04) 0.34 (0.22) 0.07
------------ ------------ ------------ ------------
Total from investment operations 0.19 0.80 0.07 0.15
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.22) (0.46) (0.31) (0.08)
From net realized gains (0.04) (0.14) (0.01) (0.09)
------------ ------------ ------------ ------------
Total distributions (0.26) (0.60) (0.32) (0.17)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 12.38 $ 12.45 $ 12.25 $ 12.50
Total return (d) 1.56%(e) 6.68% 0.56%(e) 1.19%(e)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 4,000 $ 3,680 $ 2,138 $ 477
Ratio of expenses to average net assets (f) 0.91%(g) 0.92% 1.16%(g) 0.92%(g)
Ratio of net investment income to average
net assets (f) 3.70%(g) 3.73% 3.52%(g) 4.11%(g)
Portfolio turnover rate 3%(e) 11% 10%(e) 21%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class A shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Total return at net asset value assuming all distributions reinvested and no
initial sales charge or contingent deferred sales charge.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS B SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.45 $ 12.25 $ 12.50 $ 12.52
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.18 0.37 0.24 0.06
Net realized and unrealized gain (loss)
on investments (0.04) 0.34 (0.23) 0.08
------------ ------------ ------------ ------------
Total from investment operations 0.14 0.71 0.01 0.14
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.17) (0.37) (0.25) (0.07)
From net realized gains (0.04) (0.14) (0.01) (0.09)
------------ ------------ ------------ ------------
Total distributions (0.21) (0.51) (0.26) (0.16)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 12.38 $ 12.45 $ 12.25 $ 12.50
Total return (d) 1.17%(e) 5.87% 0.05%(e) 1.10%(e)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 1,246 $ 1,190 $ 999 $ 373
Ratio of expenses to average net assets (f) 1.66%(g) 1.68% 1.86%(g) 1.67%(g)
Ratio of net investment income to average
net assets (f) 2.96%(g) 2.97% 2.83%(g) 3.36%(g)
Portfolio turnover rate 3%(e) 11% 10%(e) 21%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class B shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
215
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia Oregon Municipal Bond Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31,
CLASS C SHARES 2005 2004 (a)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.45 $ 12.42
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b) 0.20 0.36
Net realized and unrealized gain (loss)
on investments (0.03) 0.18
------------ ------------
Total from investment operations 0.17 0.54
------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.20) (0.37)
From net realized gains (0.04) (0.14)
------------ ------------
Total distributions (0.24) (0.51)
------------ ------------
NET ASSET VALUE, END OF PERIOD $ 12.38 $ 12.45
Total return (c)(d)(e) 1.37% 4.41%
------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 402 $ 278
Ratio of expenses to average net assets (f)(g) 1.31% 1.30%
Ratio of net investment income to average
net assets (f)(g) 3.28% 3.28%
Waiver (g)(h) 0.35% 0.35%
Portfolio turnover rate 3%(e) 11%
------------ ------------
(a) Class C shares were initially offered on October 13, 2003. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(d) Had the Distributor not waived a portion of expenses, total return would
have been reduced.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
(h) Amount represents voluntary waivers of service and distribution fees.
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS D SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.45 $ 12.25 $ 12.50 $ 12.52
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.20 0.41 0.27 0.07
Net realized and unrealized gain (loss)
on investments (0.03) 0.34 (0.23) 0.07
------------ ------------ ------------ ------------
Total from investment operations 0.17 0.75 0.04 0.14
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.20) (0.41) (0.28) (0.07)
From net realized gains (0.04) (0.14) (0.01) (0.09)
------------ ------------ ------------ ------------
Total distributions (0.24) (0.55) (0.29) (0.16)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 12.38 $ 12.45 $ 12.25 $ 12.50
Total return (d)(e) 1.35%(f) 6.25% 0.32%(f) 1.14%(f)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 781 $ 790 $ 700 $ 488
Ratio of expenses to average net assets (g) 1.31%(h) 1.33% 1.43%(h) 1.32%(h)
Ratio of net investment income to average
net assets (g) 3.31%(h) 3.34% 3.30%(h) 3.71%(h)
Waiver (i) 0.35%(h) 0.35% 0.35%(h) 0.35%(h)
Portfolio turnover rate 3%(f) 11% 10%(f) 21%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class D shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(e) Had the Distributor not waived a portion of expenses, total return would
have been reduced.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
(i) Amounts represent voluntary waivers of service and distribution fees.
216
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia Oregon Municipal Bond Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31,
CLASS Z SHARES 2005 2004 2003 (a)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.45 $ 12.25 $ 12.50
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.24(c) 0.50(c) 0.34(c)
Net realized and unrealized gain
(loss) on investments (0.03) 0.34 (0.23)
------------ ------------ ------------
Total from investment operations 0.21 0.84 0.11
------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.24) (0.50) (0.35)
From net realized gains (0.04) (0.14) (0.01)
------------ ------------ ------------
Total distributions (0.28) (0.64) (0.36)
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 12.38 $ 12.45 $ 12.25
Total return (e) 1.68%(f) 6.97% 0.83%(f)
------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $ 419,286 $ 434,509 $ 485,427
Ratio of expenses to average
net assets (g) 0.66%(h) 0.65% 0.68%(h)
Ratio of net investment income
to average net assets (g) 3.96%(h) 4.03% 4.13%(h)
Portfolio turnover rate 3%(f) 11% 10%(f)
------------ ------------ ------------
YEAR ENDED DECEMBER 31,
------------------------------------------------------------------------
2002 (b) 2001 2000 1999
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.08 $ 12.13 $ 11.56 $ 12.46
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.55(c) 0.57(d) 0.58 0.56
Net realized and unrealized gain
(loss) on investments 0.54 (0.02)(d) 0.58 (0.88)
------------ ------------ ------------ ------------
Total from investment operations 1.09 0.55 1.16 (0.32)
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.55) (0.57) (0.58) (0.56)
From net realized gains (0.12) (0.03) (0.01) (0.02)
------------ ------------ ------------ ------------
Total distributions (0.67) (0.60) (0.59) (0.58)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 12.50 $ 12.08 $ 12.13 $ 11.56
Total return (e) 9.24% 4.55% 10.28% (2.65)%
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $ 508,865 $ 491,638 $ 436,544 $ 409,919
Ratio of expenses to average
net assets (g) 0.58% 0.57% 0.58% 0.57%
Ratio of net investment income
to average net assets (g) 4.45% 4.64%(d) 4.92% 4.64%
Portfolio turnover rate
21% 14% 22% 28%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were renamed Class Z shares.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Effective January 1, 2001, the Fund adopted the provisions of the AICPA
Audit and Accounting Guide for Investment Companies and began amortizing
premium and accreting discount on all debt securities. The effect of this
change for the year ended December 31, 2001 was less than $0.01 to net
investment income and net realized and unrealized loss per share and less
than 0.01% to the ratio of net investment income to average net assets. Per
share data and ratios for the periods prior to December 31, 2001 have not
been restated to reflect this change in presentation.
(e) Total return at net asset value assuming all distributions reinvested.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
217
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia High Yield Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS A SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 8.69 $ 8.49 $ 8.37 $ 8.17
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.24 0.50 0.33 0.09
Net realized and unrealized gain on investments 0.14 0.24 0.15 0.20
------------ ------------ ------------ ------------
Total from investment operations 0.38 0.74 0.48 0.29
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.26) (0.54) (0.36) (0.09)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 8.81 $ 8.69 $ 8.49 $ 8.37
Total return (d) 4.42%(e) 8.90% 5.81%(e) 3.50%(e)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 350,819 $ 335,841 $ 193,267 $ 33,992
Ratio of expenses to average net assets (f) 0.97%(g) 1.01% 1.07%(g) 1.15%(g)
Ratio of net investment income to average
net assets (f) 5.52%(g) 5.74% 5.82%(g) 6.46%(g)
Portfolio turnover rate 22%(e) 41% 38%(e) 42%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class A shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Total return at net asset value assuming all distributions reinvested and no
initial sales charge or contingent deferred sales charge.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS B SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 8.69 $ 8.49 $ 8.37 $ 8.17
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.21 0.43 0.28 0.07
Net realized and unrealized gain on investments 0.14 0.24 0.15 0.20
------------ ------------ ------------ ------------
Total from investment operations 0.35 0.67 0.43 0.27
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.23) (0.47) (0.31) (0.07)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 8.81 $ 8.69 $ 8.49 $ 8.37
Total return (d) 4.04%(e) 8.07% 5.20%(e) 3.33%(e)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 101,165 $ 102,038 $ 89,950 $ 16,701
Ratio of expenses to average net assets (f) 1.72%(g) 1.77% 1.94%(g) 1.90%(g)
Ratio of net investment income to average
net assets (f) 4.77%(g) 4.97% 4.93%(g) 5.71%(g)
Portfolio turnover rate 22%(e) 41% 38%(e) 42%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class B shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
218
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia High Yield Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31,
CLASS C SHARES 2005 2004 (a)
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 8.69 $ 8.64
------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b) 0.21 0.39
Net realized and unrealized gain on investments 0.14 0.09
------------ ------------
Total from investment operations 0.35 0.48
------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.23) (0.43)
------------ ------------
NET ASSET VALUE, END OF PERIOD $ 8.81 $ 8.69
Total return (c)(d)(e) 4.12% 5.65%
------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 22,754 $ 20,126
Ratio of expenses to average net assets (f)(g) 1.57% 1.61%
Ratio of net investment income to average
net assets (f)(g) 4.92% 5.03%
Waiver (g)(h) 0.15% 0.15%
Portfolio turnover rate 22%(e) 41%
------------ ------------
(a) Class C shares were initially offered on October 13, 2003. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(d) Had the Distributor not waived a portion of expenses, total return would
have been reduced.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
(h) Amounts represent voluntary waivers of service and distribution fees.
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, DECEMBER 31,
CLASS D SHARES 2005 2004 2003 (a) 2002 (b)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 8.69 $ 8.49 $ 8.37 $ 8.17
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (c) 0.22 0.44 0.29 0.07
Net realized and unrealized gain on investments 0.13 0.24 0.15 0.20
------------ ------------ ------------ ------------
Total from investment operations 0.35 0.68 0.44 0.27
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.23) (0.48) (0.32) (0.07)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 8.81 $ 8.69 $ 8.49 $ 8.37
Total return (d)(e) 4.12%(f) 8.23% 5.35%(f) 3.35%(f)
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 73,770 $ 86,854 $ 103,559 $ 18,035
Ratio of expenses to average net assets (g) 1.57%(h) 1.62% 1.73%(h) 1.75%(h)
Ratio of net investment income to average
net assets (g) 4.92%(h) 5.12% 5.12%(h) 5.86%(h)
Waiver (i) 0.15%(h) 0.15% 0.15%(h) 0.15%(h)
Portfolio turnover rate 22%(f) 41% 38%(f) 42%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) Class D shares were initially offered on November 1, 2002. Per share data
and total return reflect activity from that date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(e) Had the Distributor not waived a portion of expenses, total return would
have been reduced.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
(i) Amounts represent voluntary waivers of service and distribution fees.
219
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia High Yield Fund
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31,
CLASS Z SHARES 2005 2004 2003 (a)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 8.69 $ 8.49 $ 8.37
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.25(c) 0.52(c) 0.35(c)
Net realized and unrealized gain
(loss) on investments 0.14 0.24 0.15
------------ ------------ ------------
Total from investment operations 0.39 0.76 0.50
------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.27) (0.56) (0.38)
From net realized gains -- -- --
------------ ------------ ------------
Total distributions (0.27) (0.56) (0.38)
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 8.81 $ 8.69 $ 8.49
Total return (e) 4.54%(f) 9.16% 6.04%(f)
------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $ 1,221,700 $ 1,186,454 $ 1,197,340
Ratio of expenses to average
net assets (g) 0.72%(h) 0.77% 0.82%(h)
Ratio of net investment income
to average net assets (g) 5.77%(h) 5.97% 6.19%(h)
Portfolio turnover rate 22%(f) 41% 38%(f)
------------ ------------ ------------
YEAR ENDED DECEMBER 31,
------------------------------------------------------------------------
2002 (b) 2001 2000 1999
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 8.87 $ 8.98 $ 9.32 $ 9.84
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.57(c) 0.67(d) 0.75 0.74
Net realized and unrealized gain
(loss) on investments (0.48) (0.09)(d) (0.34) (0.51)
------------ ------------ ------------ ------------
Total from investment operations 0.09 0.58 0.41 0.23
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.59) (0.69) (0.75) (0.74)
From net realized gains -- -- -- (0.01)
------------ ------------ ------------ ------------
Total distributions (0.59) (0.69) (0.75) (0.75)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 8.37 $ 8.87 $ 8.98 $ 9.32
Total return (e) 1.17% 6.63% 4.61% 2.38%
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $ 702,785 $ 238,994 $ 97,575 $ 71,678
Ratio of expenses to average
net assets (g) 0.77% 0.85% 0.93% 0.91%
Ratio of net investment income
to average net assets (g) 6.84% 7.47%(d) 8.22% 7.71%
Portfolio turnover rate 42% 69% 50% 49%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were renamed Class Z shares.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Effective January 1, 2001, the Fund adopted the provisions of the AICPA
Audit and Accounting Guide for Investment Companies and began amortizing
premium and accreting discount on all debt securities. The effect of this
change for the year ended December 31, 2001 was to decrease net investment
income per share by $0.02, decrease net realized and unrealized loss per
share by $0.02 and decrease the ratio of net investment income to average
net assets from 7.64% to 7.47%. Per share data and ratios for periods prior
to December 31, 2001 have not been restated to reflect this change in
presentation.
(e) Total return at net asset value assuming all distributions reinvested.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
220
FINANCIAL HIGHLIGHTS ___________________________________________________________
Columbia Daily Income Company
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31,
CLASS Z SHARES 2005 2004 2003 (a)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.006(c) 0.004(c) 0.004(c)
------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.006) (0.004) (0.004)
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000
Total return (d) 0.59%(e) 0.36% 0.40%(e)
------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $ 546,209 $ 661,114 $ 898,164
Ratio of expenses to average
net assets (f) 0.80%(g) 0.71% 0.69%(g)
Ratio of net investment income
to average net assets (f) 1.23%(g) 0.38% 0.53%(g)
------------ ------------ ------------
YEAR ENDED DECEMBER 31,
------------------------------------------------------------------------
2002 (b) 2001 2000 1999
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.012(c) 0.036 0.058 0.046
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
From net investment income (0.012) (0.036) (0.058) (0.046)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000
Total return (d) 1.17% 3.70% 6.00% 4.71%
------------ ------------ ------------ ------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $ 1,136,075 $ 1,253,535 $ 1,198,151 $ 1,165,289
Ratio of expenses to average
net assets (f) 0.60% 0.60% 0.60% 0.64%
Ratio of net investment income
to average net assets (f) 1.16% 3.61% 5.82% 4.61%
------------ ------------ ------------ ------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were renamed Class Z shares.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Total return at net asset value assuming all distributions reinvested.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
221
This page intentionally left blank.
COLUMBIA FUNDS _________________________________________________________________
Columbia Funds
----------------------------------------
LARGE 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 Value*
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 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
----------------------------------------
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
223
________________________________________________________________________________
Columbia Funds
--------------------------------------------------
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 Global Equity
Columbia International Stock
Columbia Newport Greater China
Columbia Newport Tiger*
--------------------------------------------------
INDEX Columbia Large Company Index*
Columbia Small Company Index*
Columbia U.S. Treasury Index*
* The fund will be closed to new investments after the close of business on
April 29, 2005. The fund's trustees have approved the merger, which is
scheduled to occur during September and October, pending shareholder
approval
** The fund will be closed to new investments after the close of business on
April 29, 2005. The fund's trustees have approved the liquidation, which is
scheduled to occur during September, pending shareholder approval
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 and subsidiaries of Columbia Management Group,
including Columbia Management Advisors, Inc., the registered investment advisor,
and Columbia Funds Distributor, Inc.
224
IMPORTANT INFORMATION ABOUT THIS REPORT ________________________________________
Columbia Funds
TRANSFER AGENT
Columbia Funds Services, Inc.
P.O. Box 8081
Boston MA 02266-8081
800.345.6611
DISTRIBUTOR
Columbia Funds Distributor, Inc.
One Financial Center
Boston MA 02111
INVESTMENT ADVISOR
Columbia Management Advisors, Inc.
100 Federal Street
Boston MA 02110
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
PricewaterhouseCoopers LLP
125 High 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 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 fund uses to determine how
to vote proxies and a copy of the fund's voting record are available (i) at
www.columbiamanagement.com; (ii) on the Securities and Exchange Commission's
website at www.sec.gov, and (iii) without charge, upon request, by calling
800-368-0346. Information regarding how the fund voted proxies relating to
portfolio securities during the 12-month period ended June 30, 2004 is available
from the SEC's website. Information regarding how the fund voted proxies
relating to portfolio securities is also available from the fund's website.
The fund files a complete schedule of portfolio holdings with the SEC for the
first and third quarters of each fiscal year on Form N-Q. The fund's Form N-Q is
available on the SEC's website at www.sec.gov and may be reviewed and copied at
the SEC's Public Reference Room in Washington, D.C. Information on the operation
of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
225
[Photo of eDelivery]
Help your fund reduce printing and postage costs! Elect to get your shareholder
reports by electronic delivery. With Columbia's eDelivery program, you receive
an e-mail message when your shareholder report becomes available online. If your
fund account is registered with Columbia Funds, you can sign up quickly and
easily on our website at www.columbiafunds.com.
Please note -- if you own your fund shares through a financial institution,
contact the institution to see if it offers electronic delivery. If you own your
fund shares through a retirement plan, electronic delivery may not be available
to you.
Columbia Funds SEMIANNUAL REPORT, FEBRUARY 28, 2005
PRSRT STD
U.S. POSTAGE
PAID
HOLLISTON, MA
PERMIT NO. 20
COLUMBIA MANAGEMENT(R)
(C)2005 COLUMBIA FUNDS DISTRIBUTOR, INC.
ONE FINANCIAL CENTER, BOSTON, MA 02111-2621
800.345.6611 WWW.COLUMBIAFUNDS.COM
COL-03/726U-0205 (04/05) 5130
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
The registrant's "Schedule I - Investments in securities of unaffiliated
issuers" (as set forth in 17 CFR 210.12-12) is included in Item 1 of this Form
N-CSR.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have not been any material changes to the procedures by which shareholders
may recommend nominees to the registrant's board of directors, since those
procedures were last disclosed in response to the requirements of Item
7(d)(2)(ii)(G) of Schedule 14A or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive officer and principal financial
officers, based on their evaluation of the registrant's disclosure
controls and procedures as of a date within 90 days of the filing of
this report, have concluded that such controls and procedures are
adequately designed to ensure that information required to be
disclosed by the registrant in Form N-CSR is accumulated and
communicated to the registrant's management, including the principal
executive officer and principal financial officer, or persons
performing similar functions, as appropriate to allow timely decisions
regarding required disclosure.
(b) There were no changes in the registrant's internal control over
financial reporting that occurred during the registrant's second
fiscal quarter of the period covered by this report that has
materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
ITEM 12. 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 Growth Fund, Inc.
--------------------------------------------------------------------
By (Signature and Title) /S/ Christopher L. Wilson
--------------------------------------------------------
Christopher L. Wilson, President
Date April 27, 2005
----------------------------------------------------------------------------
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/ Christopher L. Wilson
--------------------------------------------------------
Christopher L. Wilson, President
Date April 27, 2005
----------------------------------------------------------------------------
By (Signature and Title) /S/ J. Kevin Connaughton
--------------------------------------------------------
J. Kevin Connaughton, Treasurer
Date April 27, 2005
----------------------------------------------------------------------------