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 811-06338
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Columbia Balanced 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
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Date of fiscal year end: August 31, 2005
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Date of reporting period: August 31, 2005
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
COLUMBIA FUNDS
ANNUAL REPORT
AUGUST 31, 2005
COLUMBIA INTERNATIONAL STOCK FUND
COLUMBIA MID CAP GROWTH FUND
COLUMBIA SMALL CAP GROWTH FUND I
[PHOTO OF WOMAN SMILING] 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 OREGON INTERMEDIATE MUNICIPAL BOND FUND
COLUMBIA CONSERVATIVE HIGH YIELD FUND
COLUMBIA DAILY INCOME COMPANY
TABLE OF CONTENTS
Economic Update ........................................................ 1
Columbia International Stock Fund ...................................... 2
Columbia Mid Cap Growth Fund ........................................... 6
Columbia Small Cap Growth Fund I ....................................... 10
Columbia Real Estate Equity Fund ....................................... 14
Columbia Technology Fund ............................................... 18
Columbia Strategic Investor Fund ....................................... 22
Columbia Balanced Fund ................................................. 26
Columbia Short Term Bond Fund .......................................... 30
Columbia Fixed Income Securities Fund .................................. 34
Columbia Oregon Intermediate Municipal Bond Fund ....................... 38
Columbia Conservative High Yield Fund .................................. 42
Columbia Daily Income Company .......................................... 46
Financial Statements ................................................... 50
Report of Independent Registered Public Accounting Firm ................ 192
Unaudited Information .................................................. 193
Trustees ............................................................... 194
Officers ............................................................... 196
Columbia Funds ......................................................... 197
Important Information About This Report ................................ 201
The views expressed in the President's message and Portfolio Managers' Report
reflects the current views of the respective parties. These views are not
guarantees of future performance and involve certain risks, uncertainties and
assumptions that are difficult to predict so actual outcomes and results may
differ significantly from the views expressed. These views are subject to change
at any time based upon economic, market or other conditions and the respective
parties disclaim any responsibility to update such views. These views may not be
relied on as investment advice and, because investment decisions for a Columbia
Fund are based on numerous factors, may not be relied on as an indication of
trading intent on behalf of any particular Columbia Fund. References to specific
company securities should not be construed as a recommendation or investment
advice.
Not FDIC May Lose Value
----------------
Insured No Bank Gurantee
PRESIDENT'S MESSAGE ____________________________________________________________
COLUMBIA FUNDS
DEAR SHAREHOLDER:
Columbia Management, the asset management division of Bank of America, is in the
final stages of a significant business integration effort. Over the last year,
we have been integrating various components of the Nations Funds, Galaxy Funds
and Columbia Funds, which will result in a single fund family that covers a wide
range of markets, sectors and asset classes. Our team of talented, seasoned
investment professionals will continue to strive to achieve strong results
within their investment categories. Our objective is not only to provide our
shareholders with the best products but also to enhance the breadth and
availability of our services. Given our ability to now leverage the size and
scale of the Columbia Management business, I am pleased that these efforts will
also result in substantial cost savings to the funds.
Our goal is to create a more simplified, clearly delineated product line.
Through thoughtful project planning and execution, we will initially reduce the
number of retail mutual funds from over 140 to fewer than 90. Earlier this year
several fund mergers and liquidations were successfully completed. As we work to
complete the remaining product and service provider consolidations in the coming
months, we remain committed to building a mutual fund business that meets, and
hopefully exceeds, your desire for personal financial solutions. We will
continue to strive for the highest standards of performance and service
excellence. The asset management business is in a time of transformation and we
are committed to being progressive and innovative in our approach to the
business. We value the confidence you have placed in us to assist you in
managing your funds during these changing times. As with all businesses within
Bank of America, we understand that your trust must be continuously earned and
will remain focused on producing results for you.
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 encourage you to read
the manager reports carefully and discuss any questions you have with your
financial advisor. As always, we thank you for choosing Columbia Management. We
look forward to helping you keep your long-term financial goals on target in the
years to come.
Sincerely,
/s/ Christopher L. Wilson
Christopher L. Wilson
HEAD OF MUTUAL FUNDS, COLUMBIA MANAGEMENT
Christopher L. 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 President of Columbia Funds,
President & CEO of Nations Funds and President of Galaxy Funds. Chris joined
Bank of America in August 2004.
ECONOMIC UPDATE ________________________________________________________________
COLUMBIA FUNDS
(Sidebar)
SUMMARY
FOR THE 12-MONTH PERIOD ENDED AUGUST 31, 2005
o DESPITE BOUTS OF VOLATILITY, THE BROAD STOCK MARKET GENERATED A
DOUBLE-DIGIT RETURN FOR THE PERIOD. THE S&P 500 INDEX RETURNED 12.56%. AS
THE ECONOMY EXPANDED, SMALL CAP STOCKS OUTPERFORMED LARGE CAP STOCKS, AS
MEASURED BY THE RUSSELL 2000 INDEX.
[UP ARROW] [UP ARROW]
S&P 500 RUSSELL
INDEX INDEX
12.56% 23.10%
o INVESTMENT-GRADE BONDS CHALKED UP MODEST GAINS AS MEASURED BY THE LEHMAN
BROTHERS AGGREGATE BOND INDEX. HIGH-YIELD BONDS LED THE FIXED INCOME
MARKETS, AS MEASURED BY THE MERRILL LYNCH US HIGH YIELD, CASH PAY INDEX.
[UP ARROW] [UP ARROW]
LEHMAN MERRILL LYNCH
INDEX INDEX
4.15% 9.28%
The S&P 500 Index is an unmanaged index that tracks the performance of 500
widely held, large-capitalization US stocks.
The Russell 2000 Index is an unmanaged index that tracks the performance of the
2,000 smallest of the 3,000 largest US companies based on market capitalization.
The Lehman Brothers Aggregate Bond Index is a market value-weighted index that
tracks the performance of fixed-rate, publicly placed, dollar-denominated, and
non-convertible investment grade debt issues.
The Merrill Lynch US High Yield, Cash Pay Index is an unmanaged index that
tracks the performance of non-investment-grade corporate bonds.
The US economy moved ahead at a healthy pace during the 12-month period that
began September 1, 2004 and ended August 31, 2005. Gross domestic product
expanded at an annualized rate of 3.6% as job growth helped buoy consumer
spending and rising profits boosted business spending. Employment data was
solid. The economy added an average of 185,000 new jobs each month, and the
unemployment rate dipped to a four-year low of 4.9%.
However, record-high energy prices began to weigh on economic growth as the
period wore on. Signs of slower growth cropped up in retail spending and
industrial activity. Consumer confidence readings dipped in July and fell
sharply in the weeks after Hurricane Katrina, which occurred late in August. The
decline was the largest in 25 years, according to the University of Michigan's
monthly survey. Now, the challenges of dealing with the storm's devastating
losses has further threatened the economy's momentum.
Despite these setbacks, the longer-term outlook for the US economy remains
favorable. With the assistance from insurance funds, federal monies and
charitable contributions, the Gulf region is on track to rebuild, which could
send a positive ripple throughout the national economy.
DESPITE VOLATILITY, STOCKS MOVED AHEAD
The S&P 500 Index--a broad measure of large company stock market
performance--returned 12.56% for this reporting period. Although returns were
lackluster in the first two months of the period, most segments of the stock
market bounced back after the presidential election in November. Stocks
retreated again early in 2005 as energy prices and interest rates moved higher.
Positive economic reports helped boost stock returns in June and July. However,
stocks pulled back again in August as the economy recorded some disappointments.
Small- and mid-cap stocks outperformed large-cap stocks. Value stocks led growth
stocks except among small caps, where growth outdistanced value. Foreign stock
markets outperformed the broad US market. The MSCI EAFE Index, which measures
stock market performance in developed markets outside the United States,
returned 23.58% for the 12-month period. The stock markets of developing Asia
and China did even better.
BONDS DELIVERED MODEST GAINS
The US bond market delivered positive but modest returns despite rising
short-term interest rates, which historically have driven yields on other
maturity ranges higher--and bond prices lower. That was not the case over the
past 12 months. The yield on the 10-year US Treasury note, a bellwether for the
bond market, ended the period at just over 4.0%--slightly lower than where it
started the period.
In this environment, the Lehman Brothers Aggregate Bond Index returned 4.15% for
the 12-month period. High-yield bonds led the fixed income markets despite a
setback in the spring when GM and Ford bonds were downgraded. The weak patch for
high yield was temporary as generally improved credit ratings, stronger balance
sheets and higher profits for many companies in the high-yield universe helped
get the sector back on track. The Merrill Lynch US High Yield, Cash Pay Index
returned 9.28%.
SHORT-TERM INTEREST RATES MOVED HIGHER
After a year of the lowest short-term interest rates in recent history, the
Federal Reserve Board (the Fed) raised the federal funds rate, a key short-term
rate, from 1.50% to 3.50% 1 during the period. In the wake of Hurricane Katrina,
some market observers speculated that the Fed might curtail its rate hikes, but
the consensus favored higher short-term rates through the end of the year.
1 The federal funds rate was raised to 3.75% on September 20, 2005.
1
PERFORMANCE INFORMATION ________________________________________________________
COLUMBIA INTERNATIONAL STOCK FUND
PERFORMANCE OF A $10,000 INVESTMENT
09/01/95 - 08/31/05 ($)
SALES CHARGE WITHOUT WITH
- -----------------------------------------
Class A 20,339 19,175
- -----------------------------------------
Class B 19,831 19,831
- -----------------------------------------
Class C 19,909 19,909
- -----------------------------------------
Class D 19,973 19,781
- -----------------------------------------
Class G 19,831 19,831
- -----------------------------------------
Class Z 20,618 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.
GROWTH OF A $10,000 INVESTMENT 09/01/95 - 08/31/05
[MOUNTAIN CHART]
CLASS A SHARES CLASS A SHARES MSCI ALL COUNTRY
WITHOUT SALES CHARGE WITH SALES CHARGE MSCI EAFE INDEX WORLD EX US INDEX
- -------------------- ----------------- --------------- -----------------
09/95 10000 9425 10000 10000
10243 9654 10195 10171
10129 9547 9921 9899
10332 9738 10197 10132
10583 9974 10607 10532
10721 10104 10651 10677
10721 10104 10687 10677
11117 10478 10914 10875
11539 10875 11231 11205
11724 11050 11025 11037
11935 11249 11086 11093
11319 10669 10763 10725
11497 10836 10786 10788
11789 11111 11073 11055
11724 11050 10960 10945
12178 11478 11397 11367
12339 11629 11250 11235
12330 11621 10856 11029
12678 11949 11034 11231
12802 12066 11074 11207
13104 12351 11132 11301
13860 13063 11857 12000
14519 13684 12510 12662
14954 14094 12713 12918
13797 13004 11763 11901
14741 13893 12422 12545
13718 12929 11467 11477
13656 12871 11350 11334
13754 12963 11449 11464
13864 13067 11972 11807
14427 13598 12740 12595
14919 14061 13133 13030
15291 14411 13237 13124
15502 14610 13172 12887
15551 14657 13272 12838
15641 14742 13406 12960
13513 12736 11745 11132
12800 12064 11384 10897
13835 13039 12570 12039
14799 13948 13214 12686
15520 14627 13735 13124
15992 15072 13694 13109
15600 14703 13368 12816
16002 15082 13925 13434
16495 15547 14489 14106
15913 14998 13743 13443
16726 15764 14279 14062
17408 16407 14703 14392
17790 16767 14757 14442
18161 17117 14906 14541
19146 18045 15465 15082
21556 20317 16002 15685
24509 23100 17439 17181
23338 21996 16332 16248
24885 23454 16771 16687
24477 23070 17422 17314
22445 21155 16505 16348
20706 19515 16103 15930
21565 20325 16732 16608
20578 19394 16031 15952
21201 19982 16171 16150
19891 18747 15383 15254
19000 17907 15020 14769
18141 17098 14457 14106
18963 17872 14970 14587
18860 17776 14962 14805
17846 16820 13840 13633
16613 15657 12917 12669
17639 16625 13815 13530
17369 16371 13327 13157
16805 15839 12782 12652
16254 15319 12549 12371
15945 15028 12232 12064
14366 13540 10993 10784
14764 13915 11274 11086
15111 14242 11690 11593
15460 14571 11759 11742
14778 13929 11135 11240
14882 14026 11213 11321
15575 14680 11873 11983
15653 14753 11897 12013
15808 14899 12048 12144
15385 14500 11569 11619
14061 13253 10427 10486
13934 13132 10403 10487
12507 11788 9286 9376
12961 12215 9784 9878
13374 12605 10228 10353
12974 12228 9885 10019
12393 11680 9472 9667
12212 11510 9256 9471
12122 11425 9074 9287
12961 12215 9963 10183
13671 12885 10567 10831
13915 13115 10823 11131
14290 13468 11085 11427
14638 13797 11352 11768
15038 14173 11702 12097
15928 15012 12431 12881
16083 15158 12707 13162
17154 16168 13699 14166
17502 16496 13892 14394
17721 16702 14213 14760
17889 16861 14293 14852
17412 16411 13970 14390
17218 16228 14017 14436
17540 16532 14324 14749
16856 15887 13859 14320
16831 15863 13920 14434
17127 16142 14283 14899
17682 16665 14770 15418
18793 17712 15779 16488
19443 18325 16471 17195
18978 17887 16170 16899
19779 18642 16868 17732
19300 18191 16445 17252
18965 17874 16059 16826
18874 17788 16067 16932
19028 17934 16280 17250
19635 18506 16780 17886
08/05 20339 19175 17207 18346
The chart above shows the growth in value of a hypothetical $10,000 investment
in Class A shares of Columbia International Stock Fund during the stated time
period, and does 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 mutual funds, indices are not
investments, do not incur fees or expenses and are not professionally managed.
It is not possible to invest directly in an index. Securities in the fund may
not match those in an index.
AVERAGE ANNUAL TOTAL RETURN AS OF 08/31/05 (%)
SHARE CLASS A B C D G Z
- ------------------------------------------------------------------------------------------------------------
INCEPTION DATE 11/01/02 11/01/02 10/13/03 11/01/02 03/18/05 10/01/92
- ------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- ------------------------------------------------------------------------------------------------------------
1-year 20.89 13.94 19.98 14.98 19.98 18.98 19.91 18.91 19.98 14.98 21.20
- ------------------------------------------------------------------------------------------------------------
5-year -0.82 -1.99 -1.32 -1.66 -1.25 -1.25 -1.18 -1.38 -1.32 -1.82 -0.55
- ------------------------------------------------------------------------------------------------------------
10-year 7.36 6.73 7.09 7.09 7.13 7.13 7.16 7.06 7.09 7.09 7.50
AVERAGE ANNUAL TOTAL RETURN AS OF 06/30/05 (%)
SHARE CLASS A B C D G Z
- ------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- ------------------------------------------------------------------------------------------------------------
1-year 8.49 2.25 7.70 2.70 7.68 6.68 7.65 6.65 7.70 2.70 8.77
- ------------------------------------------------------------------------------------------------------------
5-year -2.48 -3.62 -2.93 -3.26 -2.87 -2.87 -2.80 -2.99 -2.93 -3.42 -2.22
- ------------------------------------------------------------------------------------------------------------
10-year 7.15 6.51 6.89 6.89 6.93 6.93 6.97 6.86 6.89 6.89 7.29
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 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.
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.
All results shown assume reinvestment of distributions. Class Z shares are sold
at net asset value with no Rule 12b-1 fees. Class Z shares have limited
eligibility and the investment minimum requirement may vary. Please see the
fund's prospectus for details.
Performance for different share classes will vary based on differences in sales
charges and fees associated with each class.
Effective October 13, 2003, class D shares are closed to all new investors and
new accounts. Existing class D shareholders will be able to make additional
purchases at any time. In addition, the class D sales charge of 1.00% is waived
after October 13, 2003.
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 G
performance information includes returns of the fund's Class B shares for the
period from 11/01/02 through 03/18/05 and for periods prior thereto, the fund's
Class Z shares. 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.
2
UNDERSTANDING YOUR EXPENSES ____________________________________________________
COLUMBIA INTERNATIONAL STOCK FUND
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
MANAGEMENT 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
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
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
03/01/05 - 08/31/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
- ----------------------------------------------------------------------------------------------------------------
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
- ----------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,000.00 1,028.68 1,019.00 6.29 6.26 1.23
- ----------------------------------------------------------------------------------------------------------------
Class B 1,000.00 1,000.00 1,024.70 1,015.22 10.10 10.06 1.98
- ----------------------------------------------------------------------------------------------------------------
Class C 1,000.00 1,000.00 1,025.21 1,015.22 10.11 10.06 1.98
- ----------------------------------------------------------------------------------------------------------------
Class D 1,000.00 1,000.00 1,024.50 1,015.22 10.10 10.06 1.98
- ----------------------------------------------------------------------------------------------------------------
Class G 1,000.00 1,000.00 1,024.72 1,015.48 8.99 9.80 1.93
- ----------------------------------------------------------------------------------------------------------------
Class Z 1,000.00 1,000.00 1,030.60 1,020.27 5.02 4.99 0.98
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. Class G commenced operation on March 18, 2005.
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 different funds. If these transactional costs
were included, your costs would have been higher.
COMPARE WITH OTHER FUNDS
Since all mutual funds 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
PORTFOLIO MANAGERS' REPORT _____________________________________________________
COLUMBIA INTERNATIONAL STOCK FUND
(sidebar)
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.
SUMMARY
o FOR THE 12-MONTH PERIOD ENDED AUGUST 31, 2005, THE FUND'S CLASS A SHARES
RETURNED 20.89% WITHOUT SALES CHARGE.
o STEADY ECONOMIC GROWTH AND RISING CORPORATE PROFITS HELPED THE FUND, ITS
BENCHMARK AND PEER GROUP ACHIEVE STRONG, DOUBLE-DIGIT RETURNS FOR THE
PERIOD.
o THE FUND'S ABOVE-INDEX WEIGHT IN ENERGY AIDED PERFORMANCE AS ENERGY WAS
THE PERIOD'S BEST-PERFORMING SECTOR. STOCK SELECTION IN THE UNITED KINGDOM
AND AUSTRALIA DETRACTED FROM THE FUND'S RETURN RELATIVE TO ITS BENCHMARK.
[UP ARROW] [UP ARROW]
CLASS A SHARES MSCI EAFE INDEX
20.89% 23.58%
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.
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
$1,053.4 million
For the 12-month period ended August 31, 2005, Columbia International Stock Fund
class A shares returned 20.89% without sales charge. The MSCI EAFE Index, the
fund's benchmark, returned 23.58%. The average return of the fund's peer group,
the Lipper International Multi-Cap Growth Fund Category, was 24.53% for the same
period. 1 The fund's above-index weight in energy helped it achieve its strong
return. Energy was the best-performing sector for the period. Stock selection in
the United Kingdom and Australia detracted from its return relative to its
benchmark.
ENERGY STOCKS DROVE FUND'S PERFORMANCE
With oil prices rising approximately 70% during the 12 months, a
larger-than-index weight in energy was the best performing position in the
portfolio. OMV AG, an Austria-based oil and gas producer, and Canada's EnCana,
the largest oil and gas exploration company in North America, were two of the
fund's top performing energy stocks.
EMPHASIZED COMPANIES WITH RISING DIVIDENDS AND CAPITAL EXPENDITURES
We emphasized companies that we believed were likely to raise their dividend
payouts and/or benefit from capital expenditures. As a result, the fund was
overweight in industrials relative to the index. Vinci SA, a French construction
company, was one of the best performers in the portfolio. We also added ABB in
Switzerland, a manufacturer of equipment used by utilities. For several years
investors avoided ABB, as the company was under the strain of asbestos
litigation. At the time we purchased the stock, it was selling at a significant
discount to its peers. Over the past year, ABB has benefited from strong global
trends, such as the building and upgrading of utilities around the world. We
also invested in Veolia Environnement, a French utility that provides water and
waste management services to the United States and Europe. The company has
reaped the rewards of a significant restructuring program, which has included
cost cutting and debt reduction.
RAISED EXPOSURE TO SINGAPORE AND HONG KONG
Because Singapore's economy appeared to be more resilient than other developed
economies, we significantly boosted investment in the country. We felt that
consumers were poised to boost spending and believed that many companies had the
potential to increase their earnings and dividend payouts. In addition,
valuations were attractive. Companies in Singapore were some of the best
performers in the portfolio. We also raised exposure to Hong Kong, an area that
benefited from a stronger economy and a particularly vibrant real estate sector.
We sold long-term holdings Erste Bank der Oesterreichischen Sparkassen in
Austria and Alpha Bank in Greece. Both had been portfolio leaders, but they face
increased competition. We became concerned that they would not be able to
sustain their high level of earnings growth.
1 Lipper Inc., a widely respected data provider in the industry, calculates
an average total return (assuming reinvestment of distributions) for
mutual funds with investment objectives similar to those of the fund.
Lipper makes no adjustment for the effect of sales loads.
4
________________________________________________________________________________
COLUMBIA INTERNATIONAL STOCK FUND
(Sidebar)
NET ASSET VALUE PER SHARE
AS OF 08/31/05 ($)
Class A 15.76
- -----------------------------------------
Class B 15.37
- -----------------------------------------
Class C 15.43
- -----------------------------------------
Class D 15.48
- -----------------------------------------
Class G 15.37
- -----------------------------------------
Class Z 15.85
DISTRIBUTIONS DECLARED PER SHARE
09/01/04 - 08/31/05 ($)
Class A 0.00
- -----------------------------------------
Class B 0.00
- -----------------------------------------
Class C 0.00
- -----------------------------------------
Class D 0.00
- -----------------------------------------
Class G 0.00
- -----------------------------------------
Class Z 0.07
TOP 5 COUNTRIES AS OF 08/31/05 (%)
United Kingdom 24.9
- -----------------------------------------
Japan 23.0
- -----------------------------------------
France 9.5
- -----------------------------------------
Germany 7.9
- -----------------------------------------
Switzerland 6.7
TOP 10 HOLDINGS AS OF 08/31/05 (%)
Vodafone Group 2.6
- -----------------------------------------
Nestle SA 2.3
- -----------------------------------------
Total SA 1.9
- -----------------------------------------
GlaxoSmithKline 1.8
- -----------------------------------------
HSBC Holdings 1.6
- -----------------------------------------
Toyota Motor 1.5
- -----------------------------------------
BP ADR 1.5
- -----------------------------------------
AstraZeneca 1.4
- -----------------------------------------
Royal Bank of Scotland 1.3
- -----------------------------------------
BP 1.2
HOLDINGS DISCUSSED IN THIS REPORT
AS OF 08/31/05 (%)
OMV AG 0.7
- -----------------------------------------
EnCana 0.7
- -----------------------------------------
Vinci SA 1.2
- -----------------------------------------
ABB 0.4
- -----------------------------------------
Veolia Environnement 1.1
Your fund is actively managed and the composition of its portfolio will change
over time. Information provided is calculated as a percentage of net assets.
REDUCED EXPOSURE TO COMMODITY STOCKS DETRACTED FROM PERFORMANCE
We reduced exposure to the metals and mining sector early in the period because
of concerns that stock valuations were excessive and company profit margins were
set to decline as capital expenditures increased. Unfortunately, we were
premature in our assessment of the metals and mining area, as the continued
strong global demand for commodities resulted in both higher product prices and
stock prices. As a result, our underweight in metals and mining stocks held back
the fund's return.
SEEKING NEW OPPORTUNITIES WHILE MAINTAINING CURRENT PORTFOLIO THEMES
We plan to continue to seek out opportunities among large companies that have
the potential to increase their dividend payouts and to maintain our emphasis on
companies that should benefit from capital spending. Despite forecasts for
slower economic growth in Europe, we believe there are opportunities in markets
where valuations are attractive. Germany looks poised to benefit from continued
global industrial production growth and further corporate restructuring plans.
The German market is trading at 12 times next year's estimated earnings per
share, which is attractive relative to the MSCI Europe Index, which is trading
at 14 times earnings. We are also optimistic about Japan's prospects. Economic
data, such as rising consumer confidence and strong industrial production
numbers, could bode well for Japan. In addition, we expect ongoing political and
economic restructuring efforts to boost investor confidence in the Japanese
market.
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
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.
5
PERFORMANCE INFORMATION ________________________________________________________
COLUMBIA MID CAP GROWTH FUND
(Sidebar)
PERFORMANCE OF A $10,000 INVESTMENT
09/01/95 - 08/31/05 ($)
SALES CHARGE WITHOUT WITH
- -----------------------------------------
Class A 21,495 20,255
- -----------------------------------------
Class B 21,039 21,039
- -----------------------------------------
Class C 21,087 21,087
- -----------------------------------------
Class D 21,058 20,852
- -----------------------------------------
Class G 20,981 20,981
- -----------------------------------------
Class T 21,534 20,292
- -----------------------------------------
Class Z 21,737 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.
GROWTH OF A $10,000 INVESTMENT 09/01/95 - 08/31/05
[MOUNTAIN CHART]
CLASS A SHARES CLASS A SHARES RUSSELL MIDCAP RUSSELL MIDCAP
WITHOUT SALES CHARGE WITH SALES CHARGE GROWTH INDEX INDEX
- -------------------- ----------------- -------------- --------------
09/95 10000 9425 10000 10000
10159 9575 10223 10226
9736 9177 9964 9997
10262 9672 10410 10494
10434 9834 10415 10555
10355 9760 10599 10777
10817 10195 11000 11031
11080 10443 11087 11191
12048 11356 11622 11507
12389 11677 11859 11681
11679 11008 11501 11506
10536 9930 10609 10794
11179 10536 11183 11307
11611 10944 11893 11866
11285 10636 11754 11961
11912 11228 12446 12689
11797 11119 12237 12560
12077 11382 12778 13030
11887 11203 12497 13010
11310 10660 11791 12457
11227 10581 12079 12767
12279 11573 13162 13699
12676 11948 13526 14147
13390 12620 14821 15327
13349 12581 14676 15160
13996 13191 15418 16026
13182 12424 14646 15402
13319 12553 14800 15769
13289 12525 14993 16204
12934 12191 14724 15900
13761 12970 16108 17143
14633 13792 16782 17955
14588 13749 17011 18000
14207 13390 16312 17444
14437 13607 16773 17687
13453 12679 16055 16843
11767 11091 12990 14148
12587 11864 13972 15063
13112 12358 15001 16091
13715 12927 16013 16852
15501 14610 17672 17839
15187 14313 18202 17809
13934 13132 17312 17216
14328 13504 18277 17755
14794 13943 19110 19067
14834 13981 18864 19012
15870 14958 20180 19683
15456 14567 19538 19142
15167 14295 19335 18646
15376 14492 19171 17989
16302 15365 20653 18842
18317 17264 22792 19385
21132 19917 26740 21091
21492 20256 26735 20393
27621 26033 32354 21961
27176 25614 32387 23219
24521 23111 29242 22121
23180 21847 27110 21535
25751 24270 29987 22172
24733 23311 28089 21924
28194 26573 32324 24024
27602 26014 30744 23680
25675 24199 28641 23316
21955 20692 22417 21217
24060 22677 23598 22832
23644 22284 24946 23200
20986 19780 20630 21787
19181 18079 17678 20436
21015 19807 20625 22183
20673 19484 20528 22596
20292 19126 20538 22383
19552 18427 19154 21743
18441 17381 17765 20906
16357 15417 14829 18385
16949 15975 16387 19113
18338 17283 18152 20715
19011 17917 18842 21547
18370 17314 18230 21418
17545 16536 17196 21191
18582 17514 18508 22462
18106 17065 17529 22027
17815 16790 17007 21778
16584 15630 15129 20319
15313 14433 13659 18336
14955 14095 13611 18436
14296 13474 12530 16735
14693 13848 13501 17580
15110 14241 14558 18800
14325 13501 13679 18059
14325 13501 13545 17694
13995 13190 13427 17461
14082 13272 13677 17634
14790 13940 14608 18914
16061 15137 16013 20644
16322 15384 16242 20853
16672 15713 16822 21541
17545 16537 17749 22476
16605 15650 17405 22195
17943 16912 18808 23889
18439 17378 19312 24560
18603 17533 19522 25297
19001 17908 20167 26033
18942 17853 20505 26592
18749 17671 20466 26598
17847 16821 19889 25622
18079 17039 20359 26257
18496 17433 20682 26984
16848 15880 19313 25805
16479 15532 19076 25916
17178 16190 19787 26758
17877 16849 20458 27497
18973 17882 21514 29171
19886 18742 22544 30414
19528 18405 21940 29660
19975 18826 22495 30576
19354 18241 22166 30335
18326 17272 21289 29367
19790 18652 22509 30774
20131 18973 22927 31602
21401 20170 24264 33267
08/05 21495 20255 24114 33035
The chart above shows the growth in value of a hypothetical $10,000 investment
in Class A shares of Columbia Mid Cap Growth Fund during the stated time period,
and does 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 08/31/05 (%)
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
- -----------------------------------------------------------------------------------------------------------------------------
1-year 30.43 22.93 29.49 24.49 29.48 28.48 29.46 28.46 29.52 24.52 30.36 22.86 30.75
- -----------------------------------------------------------------------------------------------------------------------------
5-year -5.28 -6.40 -5.69 -5.96 -5.64 -5.64 -5.67 -5.86 -5.74 -6.16 -5.25 -6.37 -5.07
- -----------------------------------------------------------------------------------------------------------------------------
10-year 7.95 7.31 7.72 7.72 7.75 7.75 7.73 7.63 7.69 7.69 7.97 7.33 8.07
AVERAGE ANNUAL TOTAL RETURN AS OF 06/30/05 (%)
SHARE CLASS A B C D G T Z
- -----------------------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- -----------------------------------------------------------------------------------------------------------------------------
1- year 8.81 2.55 8.02 3.02 8.00 7.00 8.01 7.01 8.10 3.10 8.79 2.51 9.10
- -----------------------------------------------------------------------------------------------------------------------------
5- year -4.81 -5.93 -5.19 -5.47 -5.15 -5.15 -5.17 -5.36 -5.24 -5.65 -4.77 -5.89 -4.60
- -----------------------------------------------------------------------------------------------------------------------------
10-Year 8.21 7.57 8.00 8.00 8.02 8.02 8.01 7.90 7.97 7.97 8.23 7.60 8.33
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.
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.
All results shown assume reinvestment of distributions. Class Z shares are sold
at net asset value with no Rule 12b-1 fees. Class Z shares have limited
eligibility and the investment minimum requirement may vary. Please see the
fund's prospectus for details.
Performance for different share classes will vary based on differences in sales
charges and fees associated with each class.
Effective October 13, 2003, class D shares are closed to all new investors and
new accounts. Existing class D shareholders will be able to make additional
purchases at any time. In addition, the class D sales charge of 1.00% is waived
after October 13, 2003.
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.
6
UNDERSTANDING YOUR EXPENSES ____________________________________________________
COLUMBIA MID CAP GROWTH FUND
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
MANAGEMENT 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
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
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
03/01/05 - 08/31/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
- ----------------------------------------------------------------------------------------------------------------
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
- ----------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,000.00 1,076.32 1,019.21 6.23 6.06 1.19
- ----------------------------------------------------------------------------------------------------------------
Class B 1,000.00 1,000.00 1,072.19 1,015.43 10.13 9.86 1.94
- ----------------------------------------------------------------------------------------------------------------
Class C 1,000.00 1,000.00 1,072.49 1,015.43 10.13 9.86 1.94
- ----------------------------------------------------------------------------------------------------------------
Class D 1,000.00 1,000.00 1,072.09 1,015.43 10.13 9.86 1.94
- ----------------------------------------------------------------------------------------------------------------
Class G 1,000.00 1,000.00 1,072.39 1,015.68 9.87 9.60 1.89
- ----------------------------------------------------------------------------------------------------------------
Class T 1,000.00 1,000.00 1,076.12 1,018.95 6.49 6.31 1.24
- ----------------------------------------------------------------------------------------------------------------
Class Z 1,000.00 1,000.00 1,077.38 1,020.47 4.92 4.79 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.
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 different funds. If these transactional costs
were included, your costs would have been higher.
COMPARE WITH OTHER FUNDS
Since all mutual funds 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
PORTFOLIO MANAGER'S REPORT _____________________________________________________
COLUMBIA MID CAP GROWTH FUND
(Sidebar)
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.
SUMMARY
o FOR THE 12-MONTH PERIOD ENDED AUGUST 31, 2005, THE FUND'S CLASS A SHARES
RETURNED 30.43% WITHOUT SALES CHARGE.
o THE FUND'S PERFORMANCE SURPASSED THE RETURNS OF THE RUSSELL MIDCAP GROWTH
INDEX AND THE RUSSELL MIDCAP INDEX AND THE AVERAGE RETURN OF ITS PEER
GROUP, THE LIPPER MID-CAP GROWTH FUNDS CATEGORY.
o STRONG STOCK SELECTION CONTRIBUTED TO THE FUND'S OUTPERFORMANCE FOR THE
REPORTING PERIOD.
[UP ARROW] [UP ARROW] [UP ARROW]
RUSSELL RUSSELL
CLASS A MIDCAP MIDCAP
SHARES GROWTH INDEX INDEX
30.43% 26.45% 27.47%
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.
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
$841.8 million
For the 12-month period ended August 31, 2005, Columbia Mid Cap Growth Fund
class A shares returned 30.43% without sales charge. The fund outperformed both
the Russell Midcap Growth Index and the Russell Midcap Index, which returned
26.45% and 27.47%, respectively, during the same period. The fund also topped
the 24.05% average return of its peer group, the Lipper Mid-Cap Growth Funds
Category. 1 Strong stock selection drove the fund's outperformance.
TECHNOLOGY MADE STRONGEST CONTRIBUTION
Within the information technology sector, we restructured the portfolio last
summer to eliminate commodity-type businesses in favor of those with greater
intellectual property content, as reflected in companies with higher gross
margins. These changes were key to the sector's significant contribution during
this reporting period. Marvell Technology Group, levered to markets
characterized by massive unit numbers, such as transceivers, power management
and storage, was among the fund's top performers. NVIDIA, with its high-end
graphics processing chips, and Broadcom, whose chips are used in the
communications and networking markets, also performed well. Cognizant Technology
Solutions, an IT services provider and a long-time holding, continued to
increase earnings as corporations capitalized on the large, technically-skilled,
English-speaking workforce in India.
ENERGY, MATERIALS BENEFITED FROM STRONG PRICING
The energy sector was a solid contributor to fund performance as oil and natural
gas prices continued their strong rise. The fund's energy holdings outperformed
the Russell Midcap Growth Index, and we maintained an overweight position in the
sector. Standout performers included exploration and production companies XTO
Energy and EOG Resources. Similarly, a favorable pricing environment for
commodities helped the fund's holdings in the materials sector. Potash Corp. of
Saskatchewan benefited from demand for fertilizer, and Peabody Energy advanced
as higher oil and gas prices made coal a relatively more attractive energy
source.
RETAILERS LED CONSUMER DISCRETIONARY NAMES
Strong stock selection in the consumer discretionary sector had a positive
impact on performance. Chico's FAS and Coach both made significant contributions
for the reporting period and have been a core part of the fund's retail holdings
since July 2004. We believe these stocks represent good long-term growth
vehicles because each company has demonstrated the potential to open new stores
and make efficient use of technology to reach customers and control costs.
Furthermore, they serve an affluent demographic group that tends to be less
sensitive to changes in the economic environment.
1 Lipper Inc., a widely respected data provider in the industry, calculates
an average total return (assuming reinvestment of distributions) for
mutual funds with investment objectives similar to those of the fund.
Lipper makes no adjustment for the effect of sales loads.
8
________________________________________________________________________________
COLUMBIA MID CAP GROWTH FUND
(Sidebar)
NET ASSET VALUE PER SHARE
AS OF 08/31/05 ($)
Class A 22.16
- -----------------------------------------
Class B 21.69
- -----------------------------------------
Class C 21.74
- -----------------------------------------
Class D 21.71
- -----------------------------------------
Class G 21.63
- -----------------------------------------
Class T 22.20
- -----------------------------------------
Class Z 22.41
TOP 5 SECTORS AS OF 08/31/05 (%)
Consumer discretionary 19.7
- -----------------------------------------
Information technology 19.4
- -----------------------------------------
Health care 17.6
- -----------------------------------------
Industrials 12.9
- -----------------------------------------
Energy 10.9
TOP 10 HOLDINGS AS OF 08/31/05 (%)
Marvell Technology Group 2.0
- -----------------------------------------
XM Satellite Radio Holdings 1.8
- -----------------------------------------
Broadcom 1.8
- -----------------------------------------
Potash Corp. of Saskatchewan 1.8
- -----------------------------------------
Corporate Executive Board 1.7
- -----------------------------------------
Chico's FAS 1.7
- -----------------------------------------
American Tower 1.5
- -----------------------------------------
Tempur-Pedic International 1.3
- -----------------------------------------
Robert Half International 1.3
- -----------------------------------------
Urban Outfitters 1.2
HOLDINGS DISCUSSED IN THIS REPORT
AS OF 08/31/05 (%)
Marvell Technology Group 2.0
- -----------------------------------------
NVIDIA 0.4
- -----------------------------------------
Broadcom 1.8
- -----------------------------------------
Cognizant Technology Solutions 1.0
- -----------------------------------------
XTO Energy 1.1
- -----------------------------------------
EOG Resources 1.1
- -----------------------------------------
Potash Corp. of Saskatchewan 1.8
- -----------------------------------------
Peabody Energy 0.7
- -----------------------------------------
Chico's FAS 1.7
- -----------------------------------------
Coach 1.1
- -----------------------------------------
Urban Outfitters 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.
ROOM FOR IMPROVEMENT IN HEALTH CARE, FINANCIALS
Although no sectors posted a loss for the reporting period, the fund experienced
relative weakness in certain areas, primarily in the health care and financial
sectors. In health care, the fund's holdings slightly underperformed as they
could not overcome the loss sustained when Elan Pharmaceuticals pulled Tysabri
off the market shortly after its launch. Tysabri is a new drug for the treatment
of multiple sclerosis. We sold the stock at a substantial loss. In the
financials sector, the fund was hurt by not owning--or not owning enough
of--some of the sector's best performers.
PORTFOLIO POSITIONED FOR CONTINUED GROWTH
We continue to believe that the economy has the potential to keep growing at a
healthy rate, and the portfolio is positioned accordingly. We remain bullish
longer term on energy. Earnings are currently very strong in the materials and
industrials sectors, but we are watchful for signs of decelerating growth.
Finally, with interest rate increases likely winding down, we believe that
traditional growth sectors--such as health care, technology and consumer
discretionary--are poised to provide compelling returns.
Kenneth A. Korngiebel has managed the fund since June 2004
and has been with the advisor or its predecessors or
affiliate organizations since 1996.
/s/ Kenneth A. Korngiebel
Equity investments are 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.
9
PERFORMANCE INFORMATION ________________________________________________________
COLUMBIA SMALL CAP GROWTH FUND I
PERFORMANCE OF A $10,000 INVESTMENT
10/01/96 - 08/31/05 ($)
Class Z 27,354
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.
GROWTH OF A $10,000 INVESTMENT 10/01/96 - 08/31/05
[MOUNTAIN CHART]
RUSSELL 2000 RUSSELL 2000
CLASS Z SHARES INDEX GROWTH INDEX
-------------- ------------ ------------
10/96 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
24719 20471 13319
24247 19885 12820
22654 18746 12004
24770 19974 12851
25882 20744 13266
27455 22060 14193
08/05 27354 21654 13996
The chart above shows the growth in value of a hypothetical $10,000 investment
in Class Z shares of Columbia Small Cap Growth Fund I during the stated time
period, and does 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.
AVERAGE ANNUAL TOTAL RETURN
AS OF 08/31/05 (%)
SHARE CLASS Z
- -----------------------------------------
INCEPTION 10/01/96
- -----------------------------------------
1- year 30.39
- -----------------------------------------
5-year -1.36
- -----------------------------------------
Life 11.95
AVERAGE ANNUAL TOTAL RETURN
AS OF 06/30/05 (%)
SHARE CLASS Z
- -----------------------------------------
1- year 7.70
- -----------------------------------------
5-year -1.83
- -----------------------------------------
Life 11.49
ALL RESULTS SHOWN ASSUME REINVESTMENT OF DISTRIBUTIONS. CLASS Z SHARES ARE SOLD
AT NET ASSET VALUE WITH NO 12B-1 FEES. CLASS Z SHARES HAVE LIMITED ELIGIBILITY
AND THE INVESTMENT MINIMUM REQUIREMENT MAY VARY. PLEASE SEE THE FUND'S
PROSPECTUS FOR DETAILS.
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.
10
UNDERSTANDING YOUR EXPENSES ____________________________________________________
COLUMBIA SMALL CAP GROWTH FUND I
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
MANAGEMENT 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
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
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
03/01/05 - 08/31/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
- ----------------------------------------------------------------------------------------------------------------
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
- ----------------------------------------------------------------------------------------------------------------
Class Z 1,000.00 1,000.00 1,107.12 1,019.56 5.95 5.70 1.12
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 different funds. If these transactional costs
were included, your costs would have been higher.
COMPARE WITH OTHER FUNDS
Since all mutual funds 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
PORTFOLIO MANAGER'S REPORT _____________________________________________________
COLUMBIA SMALL CAP GROWTH FUND I
(Sidebar)
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.
SUMMARY
o FOR THE 12-MONTH PERIOD ENDED AUGUST 31, 2005, THE FUND'S CLASS Z SHARES
RETURNED 30.39%.
o THE FUND OUTPERFORMED THE RUSSELL 2000 GROWTH INDEX AND THE BROADER
RUSSELL 2000 INDEX, AS WELL AS ITS PEER GROUP.
o STRONG STOCK SELECTION, PARTICULARLY IN THE INFORMATION TECHNOLOGY,
INDUSTRIAL AND HEALTH CARE SECTORS, CONTRIBUTED TO THE FUND'S
OUTPERFORMANCE.
[UP ARROW] [UP ARROW] [UP ARROW]
CLASS Z RUSSELL 2000 RUSSELL 2000
SHARES GROWTH INDEX INDEX
30.39% 23.51% 23.10%
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.
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.
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
$214.7 million
For the 12-month period ended August 31, 2005, Columbia Small Cap Growth Fund I
class Z shares returned 30.39%. The fund surpassed the 23.51% return of the
Russell 2000 Growth Index and the 23.10% return of the Russell 2000 Index during
the same period. The fund also outperformed its peer group, the Lipper Small-Cap
Growth Funds Category, which returned 24.16%. 1 Strong stock selection,
particularly in the information technology, industrial and health care sectors,
drove the fund's outperformance.
RESTRUCTURING TECHNOLOGY PORTFOLIO HELPED RESULTS
Last summer, we restructured the information technology portion of the portfolio
to eliminate commodity-type businesses in favor of those with greater
intellectual property content, as reflected in companies with higher gross
margins. This decision was a key factor in the sector's strong performance for
this reporting period. Communications-related stocks Ixia and F5 Networks were
among the technology standouts. SiRF Technology Holdings, a supplier of chipsets
for global positioning systems for consumer and business applications, performed
well. Lastly, Macromedia appreciated on news of its proposed acquisition and was
sold from the portfolio.
INDUSTRIAL HOLDINGS EXHIBITED STRENGTH
The fund's holdings in the industrials sector outperformed, gaining 44% in the
reporting period. United Defense Industries stock price rocketed on news of its
acquisition by BAE Systems, and the stock was sold from the portfolio. Joy
Global reported significantly higher-than-expected earnings, driven by a
long-term replacement cycle for mining equipment. URS experienced strength in
the commercial and government sectors, to which it provides engineering design
services. Finally, Wabtec benefited from an upturn in demand for rail cars.
INDUSTRY CONSOLIDATION BENEFITED HEALTH CARE STOCKS
Despite some difficulties in early 2005, the health care sector was a top
contributor in the period and the fund's holdings outperformed. DaVita and Renal
Care Group, both dialysis service providers, and Accredo Health, a specialty
pharmaceutical services provider, all benefited from consolidation in the
industry. We locked in gains from Renal Care Group and Accredo Health and sold
both from the portfolio. However, the fund experienced some disappointments in
its pharmaceutical stocks. For example, Connetics struggled as the FDA denied
approval of one of its pipeline drugs. We eventually sold the stock since the
company's risk profile increased beyond our comfort level.
1 Lipper Inc., a widely respected data provider in the industry, calculates
an average total return (assuming reinvestment of distributions) for
mutual funds with investment objectives similar to those of the fund.
Lipper makes no adjustment for the effect of sales loads.
12
________________________________________________________________________________
COLUMBIA SMALL CAP GROWTH FUND I
NET ASSET VALUE PER SHARE
(Sidebar)
AS OF 08/31/05 ($)
Class Z 27.80
TOP 5 SECTORS AS OF 08/31/05 (%)
Information technology 26.3
- -----------------------------------------
Health care 22.3
- -----------------------------------------
Industrials 16.8
- -----------------------------------------
Consumer discretionary 12.2
- -----------------------------------------
Energy 8.0
TOP 10 HOLDINGS AS OF 08/31/05 (%)
Salix Pharmaceuticals 2.1
- -----------------------------------------
Wabtec 1.9
- -----------------------------------------
Affiliated Managers Group 1.8
- -----------------------------------------
Corporate Executive Board 1.8
- -----------------------------------------
SiRF Technology Holdings 1.7
- -----------------------------------------
HealthExtras 1.6
- -----------------------------------------
Scientific Games 1.5
- -----------------------------------------
CACI International 1.5
- -----------------------------------------
URS 1.5
- -----------------------------------------
Microsemi 1.4
HOLDINGS DISCUSSED IN THIS REPORT
AS OF 08/31/05 (%)
Ixia 1.3
- -----------------------------------------
F5 Networks 1.1
- -----------------------------------------
SiRF Technology Holdings 1.7
- -----------------------------------------
Joy Global 1.4
- -----------------------------------------
URS 1.5
- -----------------------------------------
Wabtec 1.9
- -----------------------------------------
DaVita 0.7
- -----------------------------------------
OM Group 1.1
Your fund is actively managed and the composition of its portfolio will change
over time. Information provided is calculated as a percentage of net assets.
RELATIVE WEAKNESS EMERGED IN CERTAIN SECTORS
Although the energy and consumer discretionary sectors made solid contributions
to the fund's return, the portfolio's holdings underperformed their counterparts
in the index. Stock selection in the energy sector and a lack of exposure to
casino gaming operators and housing stocks in the consumer discretionary sector
hurt relative performance. Stock selection in the materials sector also
detracted from performance, as this group declined in the period. A particular
disappointment was OM Group, a cobalt refiner that has benefited from strength
in the battery market. Although the stock struggled during the period, we
remained patient because we believe that its long-term prospects are favorable.
TURNING TO TRADITIONAL GROWTH SEGMENTS
In general, we believe that the economy has the potential to continue growing at
a healthy rate and the portfolio is positioned accordingly. We remain bullish
longer term on energy. Earnings are currently very strong in the materials and
industrials sectors, but we are watchful for signs of decelerating growth. In
addition, with interest rate increases likely winding down, we believe that
traditional growth sectors--such as health care, technology and consumer
discretionary--may be poised to provide compelling returns. Finally, we believe
that growth stocks appear to be more reasonably valued than value stocks, which
have been favored for the past five years.
Kenneth A. Korngiebel has managed the fund since June 2004
and has been with the advisor or its predecessors or
affiliate organizations since 1996.
/s/ Kenneth A. Korngiebel
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.
13
PERFORMANCE INFORMATION ________________________________________________________
COLUMBIA REAL ESTATE EQUITY FUND
PERFORMANCE OF A $10,000 INVESTMENT
09/01/95 - 08/31/05 ($)
SALES CHARGE WITHOUT WITH
- -----------------------------------------
Class A 42,158 39,746
- -----------------------------------------
Class B 41,318 41,318
- -----------------------------------------
Class C 41,303 41,303
- -----------------------------------------
Class D 41,332 40,923
- -----------------------------------------
Class Z 42,571 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.
GROWTH OF A $10,000 INVESTMENT 09/01/95 - 08/31/05
[MOUNTAIN CHART]
CLASS A CLASS A
SHARES WITHOUT SHARES WITH
SALES CHARGE SALES CHARGE NAREIT INDEX
-------------- ------------ ------------
09/95 10000.00 9425.00 10000.00
10250.00 9661.00 10171.00
10022.00 9446.00 9953.00
10107.00 9526.00 10044.00
11017.00 10384.00 10592.00
11225.00 10580.00 10767.00
11321.00 10670.00 10893.00
11252.00 10605.00 10833.00
11243.00 10596.00 10888.00
11498.00 10837.00 11169.00
11771.00 11094.00 11315.00
11788.00 11110.00 11399.00
12359.00 11648.00 11849.00
12877.00 12136.00 12055.00
13129.00 12374.00 12413.00
13805.00 13011.00 12979.00
15237.00 14361.00 14327.00
15538.00 14645.00 14488.00
15633.00 14734.00 14459.00
15847.00 14936.00 14428.00
15305.00 14425.00 14032.00
15791.00 14883.00 14444.00
16506.00 15557.00 15146.00
17371.00 16372.00 15614.00
17197.00 16208.00 15577.00
18734.00 17657.00 16936.00
18094.00 17053.00 16479.00
18550.00 17483.00 16835.00
19006.00 17913.00 17232.00
18936.00 17847.00 17141.00
18582.00 17513.00 16850.00
19208.00 18103.00 17151.00
18374.00 17318.00 16592.00
18231.00 17183.00 16476.00
18180.00 17134.00 16364.00
17109.00 16125.00 15302.00
15853.00 14942.00 13857.00
16676.00 15717.00 14642.00
16394.00 15452.00 14371.00
16727.00 15765.00 14582.00
16658.00 15701.00 14215.00
16362.00 15421.00 13918.00
16246.00 15312.00 13591.00
16150.00 15221.00 13529.00
17485.00 16480.00 14813.00
18010.00 16974.00 15139.00
17603.00 16591.00 14894.00
16953.00 15979.00 14420.00
16943.00 15969.00 14237.00
16186.00 15255.00 13696.00
15857.00 14946.00 13359.00
15726.00 14821.00 13142.00
16248.00 15314.00 13558.00
16314.00 15376.00 13603.00
15913.00 14998.00 13441.00
16739.00 15777.00 13883.00
17743.00 16723.00 14816.00
17891.00 16862.00 14961.00
18556.00 17489.00 15346.00
20154.00 18995.00 16687.00
19356.00 18243.00 16010.00
20155.00 18996.00 16519.00
19196.00 18092.00 15803.00
19762.00 18626.00 16006.00
20936.00 19732.00 17132.00
20737.00 19545.00 17311.00
20445.00 19269.00 17034.00
20093.00 18938.00 17199.00
20802.00 19606.00 17610.00
21252.00 20030.00 18036.00
22174.00 20899.00 19093.00
21781.00 20529.00 18713.00
22472.00 21180.00 19398.00
21054.00 19843.00 18593.00
20340.00 19171.00 18061.00
21512.00 20275.00 19055.00
22067.00 20798.00 19520.00
22201.00 20925.00 19559.00
22641.00 21339.00 19936.00
23497.00 22146.00 21132.00
23668.00 22307.00 21312.00
24137.00 22749.00 21600.00
24482.00 23074.00 22189.00
23214.00 21879.00 21029.00
22977.00 21656.00 20987.00
22070.00 20801.00 20181.00
21414.00 20183.00 19210.00
22508.00 21214.00 20115.00
22720.00 21414.00 20264.00
22106.00 20835.00 19674.00
22361.00 21075.00 19999.00
22748.00 21440.00 20399.00
23696.00 22334.00 21296.00
24850.00 23421.00 22582.00
25394.00 23934.00 23075.00
26646.00 25114.00 24309.00
27177.00 25614.00 24441.00
27880.00 26277.00 25272.00
28285.00 26658.00 25729.00
29473.00 27778.00 26851.00
30654.00 28892.00 27790.00
31620.00 29802.00 28994.00
32414.00 30550.00 29501.00
33882.00 31934.00 31133.00
29660.00 27955.00 26593.00
31431.00 29624.00 28490.00
32515.00 30646.00 29324.00
32382.00 30520.00 29421.00
34354.00 32379.00 31757.00
34736.00 32738.00 31738.00
36066.00 33992.00 33439.00
37898.00 35719.00 34877.00
40085.00 37780.00 36569.00
37090.00 34958.00 33497.00
37751.00 35580.00 34525.00
37445.00 35292.00 33990.00
38467.00 36255.00 35798.00
39898.00 37604.00 37041.00
41251.00 38879.00 38904.00
43977.00 41449.00 41681.00
08/05 42158.00 39746.00 40154.00
The chart above shows the growth in value of a hypothetical $10,000 investment
in Class A shares of Columbia Real Estate Equity Fund during the stated time
period, and does 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 08/31/05 (%)
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
- -------------------------------------------------------------------------------------------
1- year 22.65 15.60 21.74 16.74 21.75 20.75 21.75 20.75 22.99
- -------------------------------------------------------------------------------------------
5-year 16.84 15.47 16.37 16.15 16.36 16.36 16.38 16.15 17.07
- -------------------------------------------------------------------------------------------
10-year 15.47 14.80 15.24 15.24 15.24 15.24 15.25 15.13 15.59
AVERAGE ANNUAL TOTAL RETURN AS OF 06/30/05 (%)
SHARE CLASS A B C D Z
- -------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- -------------------------------------------------------------------------------------------
1- year 26.84 19.55 25.93 20.93 25.90 24.90 25.93 24.93 27.20
- -------------------------------------------------------------------------------------------
5-year 17.33 15.95 16.89 16.67 16.87 16.87 16.90 16.67 17.55
- -------------------------------------------------------------------------------------------
10-year 15.48 14.80 15.26 15.26 15.26 15.26 15.27 15.15 15.59
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.
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.
All results shown assume reinvestment of distributions. Class Z shares are sold
at net asset value with no Rule 12b-1 fees. Class Z shares have limited
eligibility and the investment minimum requirement may vary. Please see the
fund's prospectus for details.
Performance for different share classes will vary based on differences in sales
charges and fees associated with each class.
Effective October 13, 2003, class D shares are closed to all new investors and
new accounts. Existing class D shareholders will be able to make additional
purchases at any time. In addition, class D sales charge of 1.00% is waived
after October 13, 2003.
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.
14
UNDERSTANDING YOUR EXPENSES ____________________________________________________
COLUMBIA REAL ESTATE EQUITY FUND
(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
MANAGEMENT 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
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
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
03/01/05 - 08/31/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
- ----------------------------------------------------------------------------------------------------------------
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
- ----------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,000.00 1,116.30 1,019.31 6.24 5.96 1.17
- ----------------------------------------------------------------------------------------------------------------
Class B 1,000.00 1,000.00 1,111.71 1,015.53 10.22 9.75 1.92
- ----------------------------------------------------------------------------------------------------------------
Class C 1,000.00 1,000.00 1,111.81 1,015.53 10.22 9.75 1.92
- ----------------------------------------------------------------------------------------------------------------
Class D 1,000.00 1,000.00 1,111.71 1,015.53 10.22 9.75 1.92
- ----------------------------------------------------------------------------------------------------------------
Class Z 1,000.00 1,000.00 1,117.61 1,020.57 4.91 4.69 0.92
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 different funds. If these transactional costs
were included, your costs would have been higher.
COMPARE WITH OTHER FUNDS
Since all mutual funds 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
PORTFOLIO MANAGER'S REPORT _____________________________________________________
COLUMBIA REAL ESTATE EQUITY FUND
(Sidebar)
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.
SUMMARY
o FOR THE 12-MONTH PERIOD ENDED AUGUST 31, 2005, THE FUND'S CLASS A SHARES
RETURNED 22.65% WITHOUT SALES CHARGE.
o THE FUND, ITS BENCHMARK AND PEER GROUP ALL ENJOYED STRONG, DOUBLE-DIGIT
GAINS AS THE REIT MARKET CONTINUED TO OUTPERFORM TRADITIONAL EQUITY AND
FIXED INCOME MARKETS DURING THE PERIOD.
o THE FUND'S SUBSTANTIAL STAKE IN REAL ESTATE'S LODGING SECTOR CAUSED IT TO
RETURN LESS THAN ITS BENCHMARK AS LODGING STOCKS FELL BEHIND THE REMAINDER
OF THE REAL ESTATE MARKET. WE BELIEVE THE FUND'S LARGE LODGING ALLOCATION,
ALONG WITH A DEFENSIVE POSITION IN PAPER AND FOREST PRODUCTS COMPANIES,
ALSO HURT PERFORMANCE RELATIVE TO ITS PEER GROUP.
[UP ARROW] [UP ARROW]
CLASS A SHARES NAREIT INDEX
22.65% 26.45%
THE NATIONAL ASSOCIATION OF REAL ESTATE INVESTMENT TRUSTS (NAREIT) INDEX IS AN
UNMANAGED INDEX THAT TRACKS PERFORMANCE OF ALL PUBLICLY TRADED EQUITY REIT.
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
$827.4 million
For the 12-month period ended August 31, 2005, Columbia Real Estate Equity Fund
class A shares returned 22.65% without sales charge. That was less than the
return of the fund's benchmark, the NAREIT Index, which returned 26.45%. The
fund also trailed the average return of the Lipper Real Estate Funds Category,
which was 25.92%. 1 The fund's performance relative to its benchmark was due to
a significant position in the lodging sector, which underperformed the overall
REIT market. We believe that the lodging position as well as the fund's holdings
in the forest and paper products sector were also the primary reasons the fund
fell short of the average return of its peer group. The forest and paper
products position was sold during the period.
A STRONG ECONOMY BOLSTERED REITS
A strong US economy increased the demand for space and buoyed the prices of real
estate investment trusts (REITs). Early in 2005, demand for REITs dropped
sharply as investors took profits and waited for signs of continued economic
strength. However, the REIT market bounced back with vigor in March as the price
of the 10-year Treasury bond rallied and its yield fell. The 10-year Treasury
has recently been a bellwether for REIT market performance. The rally helped the
fund's overall return, but it failed to carry with it the fund's largest sector
position--lodging stocks--which materially underperformed the remainder of the
market over the period.
LODGING AND PAPER & FOREST PRODUCTS HOLDINGS HURT PERFORMANCE
Riding high on positive travel trends, the fund's holdings in the lodging sector
contributed strongly to performance until March when investors became concerned
about the ability of consumers to continue spending as fuel costs continued to
climb. This perception sparked a sell-off in consumer discretionary stocks, in
general, including securities related to the travel industry. Yet, we continue
to believe in the economy's health and the underlying business strength of the
lodging stocks held in the portfolio. Based on this, the fund's allocation to
the sector is approximately triple that of the index.
A defensive position in non-real estate paper and forest product stocks
eliminated over the course of the year also had a negative effect on overall
performance.
1 Lipper Inc., a widely respected data provider in the industry, calculates
an average total return (assuming reinvestment of distributions) for
mutual funds with investment objectives similar to those of the fund.
Lipper makes no adjustment for the effect of sales loads.
16
________________________________________________________________________________
COLUMBIA REAL ESTATE EQUITY FUND
(Sidebar)
NET ASSET VALUE PER SHARE
AS OF 08/31/05 ($)
Class A 27.84
- -----------------------------------------
Class B 27.85
- -----------------------------------------
Class C 27.83
- -----------------------------------------
Class D 27.84
- -----------------------------------------
Class Z 27.86
DISTRIBUTIONS DECLARED PER SHARE
09/01/04 - 08/31/05 ($)
Class A 3.27
- -----------------------------------------
Class B 3.08
- -----------------------------------------
Class C 3.08
- -----------------------------------------
Class D 3.08
- -----------------------------------------
Class Z 3.34
TOP SECTORS AS OF 08/31/05 (%)
Financial 80.7
- -----------------------------------------
Consumer discretionary 15.3
- -----------------------------------------
Consumer staples 0.7
- -----------------------------------------
Telecommunication services 0.6
TOP 10 HOLDINGS AS OF 08/31/05 (%)
Hilton Hotels 6.5
- -----------------------------------------
Simon Property Group 5.7
- -----------------------------------------
iStar Financial 5.6
- -----------------------------------------
Alexandria Real Estate Equities 5.4
- -----------------------------------------
Starwood Hotels & Resorts Worldwide 4.4
- -----------------------------------------
Kimco Realty 4.3
- -----------------------------------------
Public Storage 4.3
- -----------------------------------------
Host Marriott 4.2
- -----------------------------------------
Cousins Properties 4.1
- -----------------------------------------
Marriott International 3.7
HOLDINGS DISCUSSED IN THIS REPORT
AS OF 08/31/05 (%)
Brookfield Properties 1.0
- -----------------------------------------
SL Green Realty 1.8
- -----------------------------------------
Boston Properties 1.7
- -----------------------------------------
General Growth Properties 3.7
- -----------------------------------------
Simon Property Group 5.7
- -----------------------------------------
Hilton Hotels 6.5
- -----------------------------------------
Starwood Hotels & Resorts Worldwide 4.4
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.
OFFICE AND RETAIL SECTORS BOOSTED RETURN
During the period, we added to the portfolio's holdings in the office sector,
which was overweight relative to the sector's allocation in the index. This
decision was rewarded by strong performance from the group, driven by improving
US employment statistics. Several of the fund's holdings in the Manhattan office
market were among its best performers, including Brookfield Properties, a
Canadian real estate operating company, SL Green Realty and Boston Properties.
We believed that this recovering sector remained attractively valued relative to
the overall REIT market, and many demonstrated strong operating momentum.
Several of the fund's holdings in the retail sector--including General Growth
Properties and Simon Property Group, which own and operate mall
properties--benefited from a combination of continued strength in consumer
spending and healthy underlying business prospects.
SEEKING VALUE IN AN OVERPRICED MARKET
In a market characterized by heady prices and runaway real estate valuations, we
expect REITs to face a headwind from higher interest rates if the economy
continues to improve and the Federal Reserve Board continues to raise short-term
rates. Against this backdrop, we plan to continue to seek sectors and securities
that we believe are attractively valued and offer opportunities for growth. We
also plan to continue to emphasize non-REIT, real-estate related holdings with
these characteristics, such as lodging companies Hilton Hotels, Marriott
International and Starwood Hotels & Resorts Worldwide.
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.
17
PERFORMANCE INFORMATION ________________________________________________________
COLUMBIA TECHNOLOGY FUND
PERFORMANCE OF A $10,000 INVESTMENT
11/09/00 - 08/31/05 ($)
SALES CHARGE WITHOUT WITH
- -----------------------------------------
Class A 8,762 8,259
- -----------------------------------------
Class B 8,562 8,391
- -----------------------------------------
Class C 8,582 8,582
- -----------------------------------------
Class D 8,612 8,527
- -----------------------------------------
Class Z 8,852 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.
GROWTH OF A $10,000 INVESTMENT 11/09/00 - 08/31/05
[MOUNTAIN CHART]
CLASS A SHARES CLASS A SHARES
WITHOUT SALES WITH SALES MERRILL LYNCH 100
CHARGE CHARGE TECHNOLOGY INDEX
-------------- -------------- -----------------
11/00 10000.00 9425.00 10000.00
8713.00 8212.00 7744.00
8622.00 8127.00 7317.00
9142.00 8617.00 8577.00
6815.00 6423.00 6096.00
6145.00 5792.00 5123.00
7365.00 6941.00 6259.00
7135.00 6725.00 5891.00
7285.00 6866.00 5912.00
6745.00 6357.00 5377.00
6095.00 5745.00 4719.00
4547.00 4285.00 3495.00
5166.00 4869.00 4158.00
5896.00 5557.00 4944.00
6126.00 5773.00 4935.00
6086.00 5736.00 4962.00
5367.00 5058.00 4289.00
6106.00 5755.00 4788.00
5376.00 5067.00 4204.00
5047.00 4757.00 3969.00
4607.00 4342.00 3321.00
3888.00 3664.00 2877.00
3858.00 3636.00 2776.00
3468.00 3269.00 2277.00
3818.00 3598.00 2774.00
4258.00 4013.00 3386.00
3788.00 3570.00 2885.00
3828.00 3608.00 2876.00
3808.00 3589.00 2901.00
3679.00 3467.00 2880.00
4138.00 3900.00 3218.00
4888.00 4607.00 3764.00
4988.00 4701.00 3746.00
5398.00 5088.00 3916.00
5907.00 5568.00 4353.00
5977.00 5634.00 4204.00
6727.00 6340.00 4711.00
7066.00 6660.00 4862.00
6977.00 6576.00 4871.00
7496.00 7065.00 5182.00
7356.00 6933.00 5085.00
7286.00 6867.00 4941.00
6916.00 6519.00 4545.00
7226.00 6811.00 4811.00
7566.00 7131.00 4955.00
6687.00 6302.00 4389.00
6497.00 6123.00 4192.00
7016.00 6613.00 4403.00
7396.00 6971.00 4723.00
8156.00 7687.00 5057.00
8456.00 7970.00 5219.00
7656.00 7216.00 4848.00
7826.00 7376.00 4932.00
7526.00 7093.00 4792.00
7056.00 6651.00 4513.00
7906.00 7451.00 4946.00
7986.00 7527.00 4829.00
8745.00 8242.00 5157.00
08/05 8762.00 8259.00 5169.00
The chart above shows the growth in value of a hypothetical $10,000 investment
in Class A shares of Columbia Technology Fund during the stated time period, and
does 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 08/31/05 (%)
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
- -----------------------------------------------------------------------------------------------------------------
1- year 34.92 27.16 33.91 28.91 34.01 33.01 34.06 33.06 35.27
- -----------------------------------------------------------------------------------------------------------------
Life -2.71 -3.90 -3.18 -3.58 -3.13 -3.13 -3.06 -3.26 -2.51
AVERAGE ANNUAL TOTAL RETURN AS OF 06/30/05 (%)
SHARE CLASS A B C D Z
- -----------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- -----------------------------------------------------------------------------------------------------------------
1- year 5.55 -0.52 4.69 -0.31 4.82 3.82 4.80 3.80 5.77
- -----------------------------------------------------------------------------------------------------------------
Life -4.74 -5.95 -5.21 -5.62 -5.16 -5.16 -5.08 -5.28 -4.56
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.
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.
All results shown assume reinvestment of distributions. Class Z shares are sold
at net asset value with no Rule 12b-1 fees. Class Z shares have limited
eligibility and the investment minimum requirement may vary. Please see the
fund's prospectus for details.
Performance for different share classes will vary based on differences in sales
charges and fees associated with each class.
Effective October 13, 2003, class D shares are closed to all new investors and
new accounts. Existing class D shareholders will be able to make additional
purchases at any time. In addition, class D initial sales charge of 1.00% is
waived after October 13, 2003.
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.
18
UNDERSTANDING YOUR EXPENSES ____________________________________________________
COLUMBIA TECHNOLOGY FUND
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
MANAGEMENT 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
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
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
03/01/05 - 08/31/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
- -----------------------------------------------------------------------------------------------------------------------
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
- -----------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,000.00 1,120.08 1,016.38 9.35 8.89 1.75
- -----------------------------------------------------------------------------------------------------------------------
Class B 1,000.00 1,000.00 1,117.31 1,012.60 13.34 12.68 2.50
- -----------------------------------------------------------------------------------------------------------------------
Class C 1,000.00 1,000.00 1,117.00 1,012.60 13.34 12.68 2.50
- -----------------------------------------------------------------------------------------------------------------------
Class D 1,000.00 1,000.00 1,116.60 1,012.60 13.34 12.68 2.50
- -----------------------------------------------------------------------------------------------------------------------
Class Z 1,000.00 1,000.00 1,122.90 1,017.64 8.03 7.63 1.50
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 different funds. If these transactional costs
were included, your costs would have been higher.
COMPARE WITH OTHER FUNDS
Since all mutual funds 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
PORTFOLIO MANAGERS' REPORT _____________________________________________________
COLUMBIA TECHNOLOGY FUND
(Sidebar)
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.
SUMMARY
o FOR THE 12-MONTH PERIOD ENDED AUGUST 31, 2005, THE FUND'S CLASS A SHARES
RETURNED 34.92% WITHOUT SALES CHARGE.
o THE FUND PERFORMED BETTER THAN THE MERRILL LYNCH 100 TECHNOLOGY INDEX AND
THE LIPPER SCIENCE & TECHNOLOGY CATEGORY AVERAGE.
o STRONG STOCK SELECTION, PARTICULARLY WITHIN THE SEMICONDUCTOR, WIRELESS
TELECOMMUNICATIONS AND COMMUNICATIONS EQUIPMENT INDUSTRIES, DROVE THE
FUND'S OUTPERFORMANCE.
[UP ARROW] [UP ARROW]
MERRILL LYNCH 100
CLASS A SHARES TECHNOLOGY INDEX
34.92% 23.32%
THE MERRILL LYNCH 100 TECHNOLOGY INDEX IS AN EQUALLY WEIGHTED, UNMANAGED INDEX
OF 100 LEADING TECHNOLOGY STOCKS.
OBJECTIVE
Seeks capital appreciation by
investing in stocks of technology
companies that may benefit
from technological
improvements, advancements
or developments.
TOTAL NET ASSETS
$60.8 million
For the 12-month period ended August 31, 2005, Columbia Technology Fund class A
shares returned 34.92% without sales charge. The fund outperformed the Merrill
Lynch 100 Technology Index, which returned 23.32% for the same period. It also
beat the average return of the Lipper Science & Technology Category, which was
20.67%. 1 Strong stock selection, particularly within the communications
equipment, semiconductor and wireless telecommunications industries, drove the
fund's outperformance.
COMMUNICATIONS-RELATED STOCKS ADVANCED
Stock selection in the communications equipment industry made a strong
contribution to the fund's performance. SiRF Technology Holdings benefited from
demand for its chipsets for global positioning systems (GPS) and returned 99%
for the fund. We believe that GPS is in the early stages of adoption and have
maintained the fund's exposure to the industry. We took a significant position
in Nokia when the market appeared overly pessimistic about growth in the cell
phone market. The fund benefited as the market readjusted its expectations, and
we sold the stock at a gain. Also, Harris, which provides fixed wireless and
radio systems, benefited from increased defense technology spending.
Throughout the reporting period, we focused on the trend toward greater adoption
of wireless technology as an investment theme. This led us to overweight the
wireless telecommunications industry, which performed well for the fund. Tower
companies SBA Communications and Crown Castle International benefited from
increased wireless cell phone usage. Dobson Communications advanced due to
successful renegotiation of roaming contracts. Long-term holding Millicom
International Cellular provides cellular service in developing countries and
benefited from considerable market share in Africa, Asia and South America.
SEMICONDUCTOR STOCKS MADE STRONG CONTRIBUTIONS
Superior stock selection in the semiconductor industry enhanced the fund's
return. We continued to look beyond mega-sized firms to identify growth
potential among companies with specific product strengths. NVIDIA was a top
performer as it reclaimed market share of the high-end graphics business and
expanded into new markets with graphics for cellular phones. Advanced Micro
Devices gained ground with the introduction of new products. Marvell Technology
Group and Broadcom, suppliers of semiconductors to the communications industry,
were also solid contributors. On the downside, Sigmatel, which makes flash
memory chips for portable music devices, detracted from performance due to
competitive issues and was sold.
STRONG PERFORMANCE FROM MEDIA, COMPUTERS
We expanded on our investment theme that focused on the digitization of media
and its delivery to consumers and businesses, which benefited from persistent
growth in the digital satellite radio market. XM Satellite Radio Holdings
advanced on the strength of its new mobile products and continued interest from
the automobile industry. In computers
1 Lipper Inc., a widely respected data provider in the industry, calculates
an average total return (assuming reinvestment of distributions) for
mutual funds with investment objectives similar to those of the fund.
Lipper makes no adjustment for the effect of sales loads.
20
________________________________________________________________________________
COLUMBIA TECHNOLOGY FUND
(Sidebar)
NET ASSET VALUE PER SHARE
AS OF 08/31/05 ($)
Class A 8.77
- -----------------------------------------
Class B 8.57
- -----------------------------------------
Class C 8.59
- -----------------------------------------
Class D 8.62
- -----------------------------------------
Class Z 8.86
TOP 5 SECTORS AS OF 08/31/05 (%)
Information technology 71.1
- -----------------------------------------
Telecommunication services 17.7
- -----------------------------------------
Consumer discretionary 5.8
- -----------------------------------------
Health care 3.4
- -----------------------------------------
Industrials 0.9
TOP 10 HOLDINGS AS OF 08/31/05 (%)
Marvell Technology Group 4.1
- -----------------------------------------
Google 3.4
- -----------------------------------------
Broadcom 3.4
- -----------------------------------------
SiRF Technology Holdings 3.0
- -----------------------------------------
Dobson Communications 2.5
- -----------------------------------------
Yahoo! 2.5
- -----------------------------------------
American Tower 2.2
- -----------------------------------------
Crown Castle International 2.2
- -----------------------------------------
SanDisk 2.2
- -----------------------------------------
XM Satellite Radio Holdings 2.1
HOLDINGS DISCUSSED IN THIS REPORT
AS OF 08/31/05 (%)
SiRF Technology Holdings 3.0
- -----------------------------------------
Harris 0.7
- -----------------------------------------
SBA Communications 1.5
- -----------------------------------------
Crown Castle International 2.2
- -----------------------------------------
Dobson Communications 2.5
- -----------------------------------------
Millicom International Cellular 1.8
- -----------------------------------------
NVIDIA 1.0
- -----------------------------------------
Advanced Micro Devices 0.3
- -----------------------------------------
Marvell Technology Group 4.1
- -----------------------------------------
Broadcom 3.4
- -----------------------------------------
XM Satellite Radio Holdings 2.0
- -----------------------------------------
Apple Computer 1.4
- -----------------------------------------
eBay 1.3
Your fund is actively managed and the composition of its portfolio will change
over time. Information provided is calculated as a percentage of net assets.
and peripherals, an overweight position in Apple Computer helped performance, as
new products at attractive prices drove sales above expectations.
MIXED RESULTS FROM INTERNET, ELECTRONIC EQUIPMENT STOCKS
The fund's Internet holdings provided mixed results for the reporting period;
although they made solid contributions to the fund's return, they underperformed
relative to the index. For instance, eBay came under pressure due to recurring
issues about growth potential. We reduced the fund's position and continued to
monitor the stock. PC Mall, a catalog and retail industry holding, was sold from
the portfolio as it fell short of earnings projections. In the electronic
equipment and instrument industry, I.D. Systems and Viisage Technology got
caught up in the turmoil surrounding technology identity systems and homeland
security, and we sold both positions.
IDENTIFYING COMPELLING GROWTH OPPORTUNITIES
We plan to continue to position the portfolio in line with investment themes
that indicate compelling growth opportunities. For example, we are focusing on
companies that may benefit from the adoption of technology in developing
countries, cost savings through outsourcing, and key products, especially in
semiconductors. In addition, we 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
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.
21
PERFORMANCE INFORMATION ________________________________________________________
COLUMBIA STRATEGIC INVESTOR FUND
PERFORMANCE OF A $10,000 INVESTMENT
11/09/00 - 08/31/05 ($)
SALES CHARGE WITHOUT WITH
- -----------------------------------------
Class A 21,850 20,596
- -----------------------------------------
Class B 21,357 21,157
- -----------------------------------------
Class C 21,367 21,367
- -----------------------------------------
Class D 21,357 21,146
- -----------------------------------------
Class Z 22,008 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.
GROWTH OF A $10,000 INVESTMENT 11/09/00 - 08/31/05
[MOUNTAIN CHART]
CLASS A SHARES CLASS A SHARES
WITHOUT SALES WITH SALES RUSSELL 3000
CHARGE CHARGE VALUE INDEX S&P 500 INDEX
-------------- -------------- ------------ -------------
11/00 10000.00 9425.00 10000.00 10000.00
9790.00 9227.00 9730.00 9399.00
11224.00 10579.00 10253.00 9445.00
12274.00 11568.00 10308.00 9780.00
12254.00 11549.00 10040.00 8888.00
11984.00 11295.00 9699.00 8325.00
12934.00 12190.00 10172.00 8972.00
13743.00 12953.00 10403.00 9032.00
13963.00 13160.00 10218.00 8812.00
13884.00 13085.00 10182.00 8726.00
13664.00 12879.00 9799.00 8180.00
12325.00 11616.00 9082.00 7519.00
12736.00 12003.00 9024.00 7662.00
13896.00 13097.00 9558.00 8250.00
14568.00 13731.00 9808.00 8323.00
14599.00 13759.00 9747.00 8201.00
14719.00 13872.00 9766.00 8043.00
15591.00 14695.00 10248.00 8345.00
15521.00 14629.00 9951.00 7840.00
15541.00 14648.00 9970.00 7782.00
14900.00 14043.00 9426.00 7228.00
13636.00 12852.00 8510.00 6665.00
13676.00 12889.00 8567.00 6708.00
12311.00 11603.00 7639.00 5979.00
12894.00 12153.00 8172.00 6505.00
14141.00 13328.00 8696.00 6888.00
13310.00 12544.00 8318.00 6484.00
12945.00 12201.00 8115.00 6314.00
12681.00 11952.00 7895.00 6219.00
12620.00 11894.00 7913.00 6279.00
13827.00 13032.00 8613.00 6797.00
14982.00 14121.00 9192.00 7155.00
15125.00 14255.00 9310.00 7247.00
15601.00 14704.00 9472.00 7374.00
16169.00 15239.00 9634.00 7518.00
16037.00 15114.00 9539.00 7438.00
16928.00 15955.00 10137.00 7859.00
17294.00 16299.00 10294.00 7928.00
18117.00 17075.00 10908.00 8344.00
18503.00 17439.00 11114.00 8497.00
18941.00 17852.00 11351.00 8615.00
19002.00 17909.00 11271.00 8485.00
18666.00 17592.00 10971.00 8352.00
18675.00 17601.00 11084.00 8467.00
19224.00 18119.00 11369.00 8631.00
18582.00 17514.00 11178.00 8345.00
18694.00 17619.00 11334.00 8379.00
19151.00 18050.00 11532.00 8469.00
19274.00 18166.00 11722.00 8599.00
20301.00 19134.00 12353.00 8947.00
20912.00 19710.00 12756.00 9251.00
20448.00 19272.00 12506.00 9025.00
21107.00 19893.00 12906.00 9215.00
20817.00 19620.00 12721.00 9052.00
20241.00 19077.00 12458.00 8880.00
20704.00 19514.00 12796.00 9162.00
20971.00 19766.00 12972.00 9175.00
21661.00 20416.00 13379.00 9516.00
08/05 21850.00 20596.00 13301.00 9431.00
The chart above shows the growth in value of a hypothetical $10,000 investment
in Class A shares of Columbia Strategic Investor Fund during the stated time
period, and does 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. Securities in the fund may not match those in an index. Index
performance is from November 9, 2000.
AVERAGE ANNUAL TOTAL RETURN AS OF 08/31/05 (%)
SHARE CLASS A B C D Z
- -----------------------------------------------------------------------------------------------------------------
INCEPTION DATE 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
- -----------------------------------------------------------------------------------------------------------------
1- year 16.88 10.16 15.97 10.97 15.96 14.96 15.97 14.97 17.16
- -----------------------------------------------------------------------------------------------------------------
Life 17.65 16.21 17.09 16.87 17.11 17.11 17.09 16.85 17.83
AVERAGE ANNUAL TOTAL RETURN AS OF 06/30/05 (%)
SHARE CLASS A B C D Z
- ----------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- ----------------------------------------------------------------------------------------------------------------
1- year 9.11 2.83 8.30 3.30 8.29 7.29 8.30 7.30 9.39
- ----------------------------------------------------------------------------------------------------------------
Life 17.31 15.83 16.78 16.54 16.80 16.80 16.77 16.52 17.49
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.
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.
All results shown assume reinvestment of distributions. Class Z shares are sold
at net asset value with no Rule 12b-1 fees. Class Z shares have limited
eligibility and the investment minimum requirement may vary. Please see the
fund's prospectus for details.
Performance for different share classes will vary based on differences in sales
charges and fees associated with each class.
Effective October 13, 2003, class D shares are closed to all new investors and
new accounts. Existing class D shareholders will be able to make additional
purchases at any time. In addition, class D sales charge of 1.00% is waived
after October 13, 2003.
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
UNDERSTANDING YOUR EXPENSES ____________________________________________________
COLUMBIA STRATEGIC INVESTOR FUND
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
MANAGEMENT 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
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
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
03/01/05 - 08/31/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
- -------------------------------------------------------------------------------------------------------------------------
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
- -------------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,000.00 1,035.09 1,018.90 6.41 6.36 1.25
- -------------------------------------------------------------------------------------------------------------------------
Class B 1,000.00 1,000.00 1,030.70 1,015.12 10.24 10.16 2.00
- -------------------------------------------------------------------------------------------------------------------------
Class C 1,000.00 1,000.00 1,031.20 1,015.12 10.24 10.16 2.00
- -------------------------------------------------------------------------------------------------------------------------
Class D 1,000.00 1,000.00 1,031.20 1,015.12 10.24 10.16 2.00
- -------------------------------------------------------------------------------------------------------------------------
Class Z 1,000.00 1,000.00 1,035.99 1,020.16 5.13 5.09 1.00
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 different funds. If these transactional costs
were included, your costs would have been higher.
COMPARE WITH OTHER FUNDS
Since all mutual funds 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
PORTFOLIO MANAGER'S REPORT _____________________________________________________
COLUMBIA STRATEGIC INVESTOR FUND
(Sidebar)
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.
SUMMARY
o FOR THE 12-MONTH PERIOD ENDED AUGUST 31, 2005, THE FUND'S CLASS A SHARES
RETURNED 16.88% WITHOUT SALES CHARGE.
o A STRONG EQUITY ENVIRONMENT PROPELLED THE FUND, THE RUSSELL 3000 VALUE
INDEX AND THE S&P 500 INDEX TO DOUBLE-DIGIT RETURNS.
o STOCK SELECTION DROVE THE FUND'S STRONG GAINS. HOWEVER, A DEFENSIVE STANCE
AND LARGER-THAN-AVERAGE CASH POSITION DETRACTED FROM PERFORMANCE.
[UP ARROW] [UP ARROW]
RUSSELL 3000
CLASS A SHARES VALUE INDEX
16.88% 17.33%
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.
OBJECTIVE
Seeks long-term growth of
capital by using a "value"
approach to investing primarily
in common stocks.
TOTAL NET ASSETS
$525.8 million
NET ASSET VALUE PER SHARE
AS OF 08/31/05 ($)
Class A 21.21
- -----------------------------------------
Class B 20.84
- -----------------------------------------
Class C 20.85
- -----------------------------------------
Class D 20.84
- -----------------------------------------
Class Z 21.27
For the 12-month period ended August 31, 2005, Columbia Strategic Investor Fund
class A shares returned 16.88% without sales charge. The fund trailed the 17.33%
return of the Russell 3000 Value Index, but it surpassed the 12.56% return of
the S&P 500 Index. The fund also outperformed the 16.32% average return of its
peer group, the Lipper Multi-Cap Value Fund Category. 1 The fund's competitive
performance can be attributed to strong stock selection across a number of
sectors. A decision to maintain a defensive stance and larger-than-average cash
position detracted somewhat from results.
BENEFICIARIES OF RISING COMMODITY PRICES
Throughout the reporting period, we focused on the potential beneficiaries of
rising commodity prices. We believe that emerging markets have propelled demand
for energy and raw materials, and companies in these sectors benefited as prices
were driven upward by increased demand and limited supply. In the energy sector,
the fund's oil service and offshore exploration holdings benefited from
heightened demand. Transocean, TGS Nopec Geophysical and Newfield Exploration
were all strong contributors. One disappointment in this sector was
Input/Output, which suffered revenue disappointments. In the materials sector,
Potash Corp. of Saskatchewan gained 98% for the fund as a result of higher
prices and greater demand for potash. Companhia Vale do Rio Doce, a leading iron
ore miner, was up 83% for the fund as it benefited from strong demand.
Our focus on commodities extended to the industrials sector, where
we targeted capital equipment producers that appeared well positioned in the
favorable environment. Caterpillar and Bucyrus International were two such
companies and gained 56% and 72% for the fund, respectively. However, not all
industrials names were winners: 3M's 13% decline in stock price and Avery
Dennison's 12% decline detracted from performance.
STRENGTH IN CONSUMER DISCRETIONARY STOCKS
The consumer discretionary sector was a strong area for the portfolio, with some
foreign holdings leading performance. Finnish companies Nokian Renkaat Oyj, a
tire company, and Stockmann, a department store retailer, benefited from growth
in Eastern European markets. On the domestic front, low prices, a wide selection
and a focus on customer satisfaction kept sales growing at specialty auto
retailer CarMax, which gained 63% for the fund.
1 Lipper Inc., a widely respected data provider in the industry, calculates
an average total return (assuming reinvestment of distributions) for
mutual funds with investment objectives similar to those of the fund.
Lipper makes no adjustment for the effect of sales loads.
24
________________________________________________________________________________
COLUMBIA STRATEGIC INVESTOR FUND
(Sidebar)
DISTRIBUTIONS DECLARED PER SHARE
09/01/04 - 08/31/05 ($)
Class A 0.25
- -----------------------------------------
Class B 0.22
- -----------------------------------------
Class C 0.22
- -----------------------------------------
Class D 0.22
- -----------------------------------------
Class Z 0.29
TOP 5 SECTORS AS OF 08/31/05 (%)
Health care 12.1
- -----------------------------------------
Financials 10.8
- -----------------------------------------
Industrials 8.9
- -----------------------------------------
Consumer discretionary 8.9
- -----------------------------------------
Information technology 8.6
TOP TEN HOLDINGS AS OF 08/31/05 (%)
Nokian Renkaat Oyj 1.1
- -----------------------------------------
Potash Corp. of Saskatchewan 1.0
- -----------------------------------------
Schlumberger 0.9
- -----------------------------------------
Altria Group 0.9
- -----------------------------------------
Transocean 0.8
- -----------------------------------------
JPMorgan Chase 0.8
- -----------------------------------------
Samsung Electronics 0.7
- -----------------------------------------
Newfield Exploration 0.7
- -----------------------------------------
Hospira 0.7
- -----------------------------------------
Exxon Mobil 0.7
HOLDINGS DISCUSSED IN THIS REPORT
AS OF 08/31/05 (%)
Transocean 0.8
- -----------------------------------------
TGS Nopec Geophysical 0.6
- -----------------------------------------
Newfield Exploration 0.7
- -----------------------------------------
Input/Output 0.2
- -----------------------------------------
Potash Corp. of Saskatchewan 1.0
- -----------------------------------------
Companhia Vale do Rio Doce 0.5
- -----------------------------------------
Caterpillar 0.6
- -----------------------------------------
Bucyrus International 0.1
- -----------------------------------------
3M 0.3
- -----------------------------------------
Avery Dennison 0.6
- -----------------------------------------
Nokian Renkaat Oyj 1.1
- -----------------------------------------
Stockmann Oyj 0.6
- -----------------------------------------
CarMax 0.2
- -----------------------------------------
Eli Lilly 0.3
- -----------------------------------------
Pfizer 0.4
- -----------------------------------------
Biogen Idec 0.4
- -----------------------------------------
Elan 0.2
Your fund is actively managed and the composition of its portfolio will change
over time. Information provided is calculated as a percentage of net assets.
HEALTH CARE OUTPERFORMED DESPITE CERTAIN CHALLENGES
The fund's health care holdings generally performed well, and the sector was
another strong contributor to the portfolio's return. However, some large
pharmaceutical companies detracted from the group's return. Eli Lilly declined
on poor sales reports, and Pfizer struggled with risks associated with a popular
pain management drug, litigation and patent expiration. Also on the downside,
Biogen Idec and Elan suffered declines on the announcement of a voluntary
suspension in the marketing of Tysabri, a treatment for multiple sclerosis.
GRADUALLY SHIFTED THE FUND'S EMPHASIS
We continued to shift the fund's emphasis from small- and mid-cap stocks and
value names toward large-cap companies with higher growth potential. And, we
plan to seek out companies with less sensitivity to economic cycles and an
ability to maintain stable growth as the economy matures. However, we remain
cautious about putting cash to work too quickly, as we believe that recent
interest rate increases could result in some slowing in 2006. In addition, we
will continue to evaluate investment opportunities overseas, considering areas
with compelling growth trends and reasonable prices.
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
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.
25
PERFORMANCE INFORMATION ________________________________________________________
COLUMBIA BALANCED FUND
PERFORMANCE OF A $10,000 INVESTMENT
09/01/95 - 08/31/05 ($)
SALES CHARGE WITHOUT WITH
- -----------------------------------------
Class A 20,328 19,162
- -----------------------------------------
Class B 19,903 19,903
- -----------------------------------------
Class C 19,904 19,904
- -----------------------------------------
Class D 19,930 19,729
- -----------------------------------------
Class Z 20,533 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.
GROWTH OF A $10,000 INVESTMENT 09/01/95 - 08/31/05
[MOUNTAIN CHART]
CLASS A
SHARES CLASS A LEHMAN
WITHOUT SHARES BROTHERS
SALES WITH SALES S&P AGGREGATE
CHARGE CHARGE 500 INDEX BOND INDEX
-------- ---------- --------- ----------
09/95 10228.00 9639.89 10422.00 10097.00
10212.70 9625.43 10384.50 10228.30
10515.00 9910.34 10840.40 10381.70
10763.10 10144.20 11049.60 10527.00
10897.60 10271.00 11425.30 10596.50
10892.20 10265.90 11531.50 10412.10
10978.20 10347.00 11642.20 10339.20
11021.10 10387.40 11813.40 10281.30
11129.10 10489.10 12118.10 10260.80
11232.60 10586.70 12164.20 10398.30
11003.40 10370.70 11626.50 10426.40
11178.40 10535.60 11871.90 10408.60
11517.10 10854.90 12540.20 10589.70
11654.10 10984.00 12886.40 10824.80
12159.90 11460.70 13860.60 11009.90
12032.20 11340.40 13586.10 10907.50
12328.20 11619.40 14435.30 10941.40
12364.00 11653.10 14547.90 10968.70
12178.50 11478.30 13949.90 10847.00
12519.50 11799.70 14782.80 11009.70
12937.70 12193.80 15683.00 11114.20
13325.80 12559.60 16385.60 11246.50
14085.40 13275.50 17689.90 11550.20
13657.20 12871.90 16699.30 11452.00
14043.70 13236.20 17614.40 11620.30
13885.00 13086.60 17026.10 11788.80
14158.50 13344.40 17814.40 11843.10
14286.00 13464.50 18120.80 11962.70
14486.00 13653.00 18321.90 12115.80
14993.00 14130.90 19642.90 12106.10
15420.30 14533.60 20648.70 12147.30
15508.20 14616.40 20857.20 12210.40
15441.50 14553.60 20498.50 12326.40
15958.80 15041.10 21330.70 12431.20
15891.70 14978.00 21104.60 12457.30
14698.30 13853.10 18052.90 12660.40
15199.50 14325.50 19210.10 12956.60
15691.90 14789.60 20771.80 12887.90
16272.50 15336.90 22030.60 12961.40
17154.50 16168.10 23299.60 13000.30
17643.40 16628.90 24273.50 13092.60
17251.70 16259.80 23518.60 12863.50
17814.10 16789.80 24459.30 12934.20
17985.20 16951.00 25405.90 12975.60
17634.50 16620.50 24806.30 12861.40
18237.50 17188.90 26183.10 12820.30
17876.40 16848.50 25366.20 12765.10
17665.50 16649.70 25241.90 12758.80
17582.50 16571.50 24550.20 12906.80
18127.50 17085.20 26104.30 12954.50
18513.60 17449.10 26634.20 12953.20
19330.10 18218.60 28203.00 12891.00
18883.60 17797.80 26787.20 12848.50
19431.20 18313.90 26280.90 13004.00
20667.00 19478.70 28851.20 13175.60
20235.10 19071.60 27982.70 13137.40
19731.20 18596.70 27409.10 13130.80
20384.30 19212.20 28086.10 13404.00
20321.10 19152.70 27648.00 13525.90
21192.90 19974.30 29364.90 13722.10
20298.60 19131.40 27814.40 13808.50
19998.20 18848.30 27697.60 13899.60
19152.20 18051.00 25515.00 14127.60
19491.20 18370.50 25640.10 14390.40
19847.90 18706.70 26550.30 14626.40
18599.50 17530.00 24128.90 14753.60
17963.40 16930.50 22599.10 14827.40
18741.20 17663.60 24355.10 14765.10
18827.40 17744.80 24518.20 14853.70
18561.90 17494.60 23922.50 14910.20
18510.00 17445.60 23688.00 15244.10
17838.00 16812.40 22205.20 15419.50
16942.60 15968.40 20411.00 15599.90
17271.30 16278.20 20800.80 15925.90
17948.30 16916.30 22396.20 15706.10
18048.80 17011.00 22593.30 15605.60
17796.10 16772.80 22263.50 15732.00
17639.50 16625.20 21833.80 15884.60
17893.50 16864.70 22654.70 15620.90
17295.90 16301.40 21281.90 15924.00
17358.20 16360.10 21124.40 16059.30
16629.10 15672.90 19620.30 16197.40
15779.40 14872.00 18091.90 16393.40
15992.40 15072.80 18209.50 16670.50
15098.40 14230.20 16230.10 16940.50
15678.20 14776.70 17658.40 16862.60
16284.90 15348.50 18698.50 16857.50
15708.50 14805.20 17600.80 17206.50
15502.70 14611.30 17139.70 17222.00
15412.80 14526.50 16882.60 17459.70
15475.90 14586.10 17046.40 17445.70
16268.30 15332.90 18451.00 17590.50
16826.30 15858.80 19423.40 17917.70
16918.90 15946.00 19672.00 17881.80
16945.90 15971.50 20018.20 17281.00
17334.00 16337.30 20408.60 17395.00
17271.60 16278.50 20192.20 17856.00
17851.90 16825.40 21335.10 17690.00
18005.40 16970.10 21522.90 17732.40
18549.20 17482.60 22650.70 17913.30
18721.70 17645.20 23067.40 18056.60
19030.60 17936.40 23388.10 18251.60
18880.30 17794.70 23034.90 18388.50
18378.10 17321.30 22673.30 17910.40
18532.40 17466.80 22983.90 17838.80
18766.00 17686.90 23429.80 17940.40
18142.90 17099.70 22654.20 18118.00
18197.30 17151.00 22744.90 18464.10
18373.90 17317.40 22990.50 18514.00
18585.20 17516.50 23342.30 18669.50
19118.60 18019.20 24287.60 18520.10
19726.50 18592.20 25113.40 18690.50
19337.90 18226.00 24500.60 18808.20
19457.80 18339.00 25015.20 18697.30
19232.10 18126.20 24572.40 18601.90
18907.10 17819.90 24105.50 18853.00
19438.40 18320.70 24872.10 19056.70
19564.70 18439.70 24906.90 19161.50
20284.70 19118.30 25833.40 18987.10
08/05 20328.00 19162.30 25592.00 19234.00
The chart above shows the growth in value of a hypothetical $10,000 investment
in Class A shares of Columbia Balanced Fund during the stated time period, and
does 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 08/31/05 (%)
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
- -----------------------------------------------------------------------------------------------------------------
1-year 11.72 5.30 10.91 5.91 10.91 9.91 10.97 9.97 12.06
- -----------------------------------------------------------------------------------------------------------------
5-year -0.83 -2.00 -1.25 -1.59 -1.25 -1.25 -1.22 -1.42 -0.63
- -----------------------------------------------------------------------------------------------------------------
10-year 7.35 6.72 7.13 7.13 7.13 7.13 7.14 7.03 7.46
AVERAGE ANNUAL TOTAL RETURN AS OF 06/30/05 (%)
SHARE CLASS A B C D Z
- -----------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- -----------------------------------------------------------------------------------------------------------------
1-year 4.26 -1.74 3.49 -1.51 3.49 2.49 3.49 2.49 4.52
- -----------------------------------------------------------------------------------------------------------------
5-year -0.82 -1.99 -1.21 -1.56 -1.21 -1.21 -1.20 -1.39 -0.63
- -----------------------------------------------------------------------------------------------------------------
10-year 7.26 6.63 7.05 7.05 7.05 7.05 7.06 6.95 7.36
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.
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.
All results shown assume reinvestment of distributions. Class Z shares are sold
at net asset value with no Rule 12b-1 fees. Class Z shares are sold at net asset
value with no Rule 12b-1 fees. Class Z shares have limited eligibility and the
investment minimum requirement may vary. Please see the fund's prospectus for
details.
Performance for different share classes will vary based on differences in sales
charges and fees associated with each class.
Effective October 13, 2003, class D shares are closed to all new investors and
new accounts. Existing class D shareholders will be able to make additional
purchases at any time. In addition, class D sales charge of 1.00% is waived
after October 13, 2003.
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
UNDERSTANDING YOUR EXPENSES ____________________________________________________
COLUMBIA BALANCED FUND
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
MANAGEMENT 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
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
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
03/01/05 - 08/31/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
- ------------------------------------------------------------------------------------------------------------
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
- ------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,000.00 1,044.82 1,020.16 5.15 5.09 1.00
- ------------------------------------------------------------------------------------------------------------
Class B 1,000.00 1,000.00 1,040.88 1,016.38 9.00 8.89 1.75
- ------------------------------------------------------------------------------------------------------------
Class C 1,000.00 1,000.00 1,040.88 1,016.38 9.00 8.89 1.75
- ------------------------------------------------------------------------------------------------------------
Class D 1,000.00 1,000.00 1,040.88 1,016.38 9.00 8.89 1.75
- ------------------------------------------------------------------------------------------------------------
Class Z 1,000.00 1,000.00 1,046.08 1,021.42 3.87 3.82 0.75
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 different funds. If these transactional costs
were included, your costs would have been higher.
COMPARE WITH OTHER FUNDS
Since all mutual funds 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
PORTFOLIO MANAGERS' REPORT _____________________________________________________
COLUMBIA BALANCED FUND
(sidebar)
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.
SUMMARY
o FOR THE 12-MONTH PERIOD ENDED AUGUST 31, 2005, THE FUND'S CLASS A SHARES
RETURNED 11.72% WITHOUT SALES CHARGE.
o THE FUND PERFORMED WELL ABOVE THE BLENDED RETURN OF THE S&P 500 INDEX AND
THE LEHMAN BROTHERS AGGREGATE BOND INDEX.
o HEALTH CARE AND TECHNOLOGY INVESTMENTS ASSISTED RESULTS ON THE EQUITY
SIDE, WHILE MORTGAGES AND CORPORATE BONDS ENHANCED THE FUND'S FIXED-INCOME
PERFORMANCE.
[UP ARROW] [UP ARROW]
S&P 500
CLASS A SHARES INDEX
11.72% 12.56%
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 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.
OBJECTIVE
Seeks high total return by
investing in common stocks
and debt securities.
TOTAL NET ASSETS
$313.9 million
For the 12-month period ended August 31, 2005, Columbia Balanced Fund class A
shares returned 11.72% without sales charge. The S&P 500 Index returned 12.56%
and the Lehman Brothers Aggregate Bond Index returned 4.15%. The fund's return
surpassed the 10.66% average return of the Lipper Balanced Funds Category. 1 We
believe that superior stock selection and solid results from corporate bonds
aided the fund relative to its peer group.
STRONG SHOWING FROM EQUITIES
The portfolio benefited from the strong performance of its equity holdings,
which accounted for 63% of the fund's assets at the beginning of the period. Our
contrarian approach to stock selection led us to attractive opportunities,
notably in the health care sector. We identified generic drug manufacturers, who
have been able to avoid the severe price competition that many investors feared
would hurt the industry. They outperformed major pharmaceutical companies, which
have been hurt by legal difficulties and impending patent expirations. In this
regard, portfolio holdings IVAX and Endo Pharmaceuticals Holdings were strong
performers. Also in the health care sector, drug distributors such as McKesson,
AmerisourceBergen and Cardinal Health continued to adjust their business models
so that they now receive a higher percentage of fees for specific services
rather than depending solely on the price appreciation of drugs held in
inventory to boost their earnings.
The portfolio also benefited from its technology investments. The list of strong
performers included new selections such as Corning, the leading manufacturer of
the glass used in flat-panel displays, and SanDisk, the market leader in
Nanflash, a memory technology found in cameras and MP3 players. Meanwhile,
long-time holding Hewlett-Packard regained strength. Investors responded
favorably to new management's efforts to reduce overhead costs.
Although the fund was successful in many of its individual stock selections, it
gave up some opportunity with respect to its sector allocations. In particular,
our contrarian style led us to take profits in the fund's energy holdings and we
missed out on what became an extended rally. The portfolio was also underweight
in the stocks of public utilities, many of which were pushed higher by the spike
in energy prices.
FIXED-INCOME RECAP
Within the fixed income portion of the portfolio, an emphasis on
mortgage-backed, corporate and high-yield bonds was a good match with a market
willing to take on risk. However, our decision to maintain a relatively short
average maturity hurt results somewhat, because securities with maturities of 10
years or more were the bond market's best performers. Altogether, the
fixed-income segment of the portfolio performed in line with its benchmark.
1 Lipper Inc., a widely respected data provider in the industry, calculates
an average total return (assuming reinvestment of distributions) for
mutual funds with investment objectives similar to those of the fund.
Lipper makes no adjustment for the effect of sales loads.
28
________________________________________________________________________________
COLUMBIA BALANCED FUND
(Sidebar)
NET ASSET VALUE PER SHARE
AS OF 08/31/05 ($)
Class A 21.75
- -----------------------------------------
Class B 21.72
- -----------------------------------------
Class C 21.72
- -----------------------------------------
Class D 21.72
- -----------------------------------------
Class Z 21.74
DISTRIBUTIONS DECLARED PER SHARE
09/01/04 - 08/31/05 ($)
Class A 0.41
- -----------------------------------------
Class B 0.26
- -----------------------------------------
Class C 0.26
- -----------------------------------------
Class D 0.26
- -----------------------------------------
Class Z 0.47
PORTFOLIO COMPOSITION AS OF 08/31/05 (%)
Common stocks 59.0
- -----------------------------------------
Mortgage-backed securities 13.2
- -----------------------------------------
Corporate fixed-income
bonds & notes 12.8
- -----------------------------------------
Government agencies & obligations 6.4
- -----------------------------------------
Collateralized mortgage obligations 2.6
- -----------------------------------------
Asset-backed securities 1.7
- -----------------------------------------
Commercial mortgage-backed
securities 1.5
- -----------------------------------------
Cash & cash equivalents, net
receivables & payables 2.8
TOP 10 EQUITY HOLDINGS AS OF 08/31/05 (%)
Microsoft 1.8
- -----------------------------------------
Berkshire Hathaway 1.2
- -----------------------------------------
Time Warner 1.2
- -----------------------------------------
American International Group 1.1
- -----------------------------------------
Amgen 1.1
- -----------------------------------------
WebMD 1.1
- -----------------------------------------
UnumProvident 1.1
- -----------------------------------------
Honeywell International 1.0
- -----------------------------------------
Millennium Pharmaceuticals 0.9
- -----------------------------------------
JPMorgan Chase 0.9
HOLDINGS DISCUSSED IN THIS REPORT
AS OF 08/31/05 (%)
IVAX 0.6
- -----------------------------------------
Endo Pharmaceuticals Holdings 0.6
- -----------------------------------------
McKesson 0.4
- -----------------------------------------
AmerisourceBergen 0.4
- -----------------------------------------
Cardinal Health 0.6
- -----------------------------------------
Corning 0.7
- -----------------------------------------
SanDisk 0.6
- -----------------------------------------
Hewlett-Packard 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.
REDUCING RISK FOR THE YEAR AHEAD
With energy prices and short-term interest rates moving higher, we believe that
corporate earnings and overall economic growth could come under pressure. As a
result, we have become slightly more cautious about the equity market. For stock
selection, we expect to find more opportunities among larger-capitalization
growth stocks. We believe that this area of the market has the potential to
perform relatively better, given the slowing economic and earnings backdrop
mentioned. Growth stocks have been out of favor for a number of years and meet
the criteria of our contrarian approach. In the fixed-income arena, we have
reduced the fund's commitment to corporate bonds but have retained our positions
in mortgages, where we believe we can obtain additional yield without
sacrificing credit quality. In addition, we have maintained a position in TIPS
(Treasury Inflation Protected Securities) in case the economy experiences
higher- than-expected inflation in the year ahead.
Columbia Balanced Fund is managed by a manager from
Columbia's large cap core team:
Guy W. Pope has been associated with Columbia Management or
its predecessors since 1993.
/s/ Guy W. Pope
and managers from Columbia's bond team:
Leonard A. Aplet has been associated with Columbia
Management or its predecessors since 1987.
/s/ Leonard A. Aplet
Ron B. Stahl has been associated with Columbia Management or
its predecessors since 1998.
/s/ Ron B. Stahl
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.
29
PERFORMANCE INFORMATION ________________________________________________________
COLUMBIA SHORT TERM BOND FUND
PERFORMANCE OF A $10,000 INVESTMENT
09/01/95 -- 08/31/05 ($)
SALES CHARGE WITHOUT WITH
- ---------------------------------------
Class A 15,768 15,018
- ---------------------------------------
Class B 15,428 15,428
- ---------------------------------------
Class C 15,601 15,601
- ---------------------------------------
Class D 15,696 15,545
- ---------------------------------------
Class G 15,525 15,525
- ---------------------------------------
Class T 15,814 15,063
- ---------------------------------------
Class Z 15,894 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.
GROWTH OF A $10,000 INVESTMENT 09/01/95 - 08/31/05
[MOUNTAIN CHART]
MERRILL LYNCH
CLASS A SHARES CLASS A SHARES MERRILL LYNCH 1-5 YEAR
WITHOUT SALES WITH SALES 1-3 YEAR GOVERNMENT/
CHARGE CHARGE TREASURY INDEX CORPORATE INDEX
-------------- -------------- -------------- ---------------
09/95 10000.00 9525.00 10000.00 10000.00
10043.00 9566.00 10049.00 10057.00
10136.00 9655.00 10133.00 10156.00
10241.00 9754.00 10223.00 10263.00
10321.00 9830.00 10301.00 10356.00
10413.00 9918.00 10389.00 10448.00
10339.00 9848.00 10345.00 10376.00
10292.00 9803.00 10336.00 10347.00
10282.00 9793.00 10344.00 10336.00
10287.00 9798.00 10366.00 10343.00
10367.00 9875.00 10441.00 10432.00
10400.00 9906.00 10481.00 10470.00
10420.00 9925.00 10517.00 10495.00
10530.00 10029.00 10613.00 10611.00
10655.00 10149.00 10733.00 10757.00
10739.00 10229.00 10815.00 10862.00
10720.00 10210.00 10815.00 10834.00
10765.00 10253.00 10866.00 10883.00
10780.00 10268.00 10891.00 10901.00
10748.00 10238.00 10887.00 10875.00
10847.00 10332.00 10976.00 10980.00
10908.00 10390.00 11051.00 11060.00
10980.00 10459.00 11127.00 11146.00
11107.00 10580.00 11249.00 11310.00
11100.00 10572.00 11259.00 11294.00
11172.00 10641.00 11345.00 11399.00
11259.00 10724.00 11429.00 11502.00
11264.00 10728.00 11456.00 11524.00
11338.00 10799.00 11534.00 11609.00
11452.00 10908.00 11646.00 11745.00
11439.00 10895.00 11657.00 11742.00
11471.00 10926.00 11704.00 11788.00
11529.00 10982.00 11759.00 11844.00
11589.00 11039.00 11822.00 11916.00
11634.00 11082.00 11883.00 11985.00
11681.00 11126.00 11939.00 12039.00
11839.00 11276.00 12089.00 12213.00
12009.00 11439.00 12249.00 12432.00
12068.00 11495.00 12309.00 12472.00
12024.00 11453.00 12298.00 12454.00
12068.00 11494.00 12341.00 12500.00
12109.00 11534.00 12390.00 12563.00
12014.00 11444.00 12330.00 12450.00
12097.00 11523.00 12415.00 12552.00
12121.00 11546.00 12454.00 12593.00
12089.00 11514.00 12447.00 12544.00
12127.00 11551.00 12486.00 12581.00
12153.00 11576.00 12525.00 12594.00
12164.00 11586.00 12562.00 12620.00
12234.00 11653.00 12643.00 12722.00
12248.00 11666.00 12678.00 12751.00
12260.00 11678.00 12702.00 12772.00
12283.00 11700.00 12719.00 12774.00
12272.00 11689.00 12714.00 12746.00
12348.00 11762.00 12800.00 12836.00
12398.00 11809.00 12879.00 12937.00
12431.00 11841.00 12912.00 12946.00
12482.00 11889.00 12965.00 12983.00
12579.00 11982.00 13100.00 13155.00
12632.00 12032.00 13183.00 13248.00
12717.00 12113.00 13280.00 13371.00
12770.00 12164.00 13376.00 13492.00
12825.00 12216.00 13448.00 13552.00
12968.00 12352.00 13576.00 13708.00
13176.00 12551.00 13737.00 13907.00
13338.00 12705.00 13909.00 14108.00
13448.00 12809.00 14000.00 14219.00
13546.00 12903.00 14116.00 14348.00
13561.00 12917.00 14154.00 14357.00
13640.00 12992.00 14233.00 14441.00
13687.00 13037.00 14282.00 14495.00
13897.00 13237.00 14441.00 14727.00
14009.00 13344.00 14525.00 14834.00
14198.00 13524.00 14765.00 15100.00
14372.00 13689.00 14905.00 15278.00
14278.00 13600.00 14872.00 15186.00
14243.00 13566.00 14878.00 15154.00
14295.00 13616.00 14908.00 15198.00
14360.00 13677.00 14980.00 15292.00
14278.00 13600.00 14878.00 15139.00
14450.00 13764.00 15044.00 15348.00
14539.00 13848.00 15105.00 15467.00
14624.00 13930.00 15231.00 15601.00
14711.00 14012.00 15417.00 15801.00
14815.00 14111.00 15470.00 15935.00
14969.00 14258.00 15598.00 16138.00
14888.00 14181.00 15634.00 16136.00
14891.00 14184.00 15586.00 16107.00
15027.00 14313.00 15734.00 16353.00
15045.00 14330.00 15732.00 16361.00
15164.00 14443.00 15798.00 16505.00
15177.00 14456.00 15827.00 16538.00
15237.00 14513.00 15857.00 16613.00
15351.00 14622.00 15917.00 16791.00
15357.00 14628.00 15941.00 16812.00
15131.00 14413.00 15855.00 16596.00
15149.00 14430.00 15866.00 16606.00
15310.00 14583.00 16010.00 16870.00
15261.00 14536.00 15951.00 16767.00
15250.00 14526.00 15943.00 16765.00
15346.00 14617.00 16035.00 16892.00
15391.00 14660.00 16067.00 16955.00
15436.00 14702.00 16145.00 17077.00
15497.00 14761.00 16195.00 17173.00
15361.00 14631.00 16039.00 16905.00
15313.00 14586.00 16025.00 16861.00
15322.00 14595.00 16023.00 16879.00
15387.00 14656.00 16081.00 16977.00
15488.00 14753.00 16192.00 17167.00
15501.00 14764.00 16177.00 17167.00
15547.00 14809.00 16227.00 17246.00
15507.00 14770.00 16146.00 17127.00
15558.00 14819.00 16180.00 17194.00
15574.00 14834.00 16174.00 17187.00
15574.00 14834.00 16136.00 17120.00
15538.00 14800.00 16138.00 17086.00
15612.00 14871.00 16228.00 17221.00
15689.00 14944.00 16290.00 17319.00
15730.00 14982.00 16323.00 17371.00
15695.00 14950.00 16277.00 17279.00
08/05 15768.00 15019.00 16373.00 17431.00
The chart above shows the growth in value of a hypothetical $10,000 investment
in Class A shares of Columbia Short Term Bond Fund during the stated time
period, and does 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 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 08/31/05 (%)
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
- -------------------------------------------------------------------------------------------------------------------------------
1-year 1.83 -3.00 1.07 -3.88 1.69 0.70 1.69 0.70 1.28 -3.67 1.94 -2.90 2.08
- -------------------------------------------------------------------------------------------------------------------------------
5-year 4.40 3.39 3.94 3.60 4.18 4.18 4.30 4.10 4.08 3.56 4.46 3.45 4.56
- -------------------------------------------------------------------------------------------------------------------------------
10-year 4.66 4.15 4.43 4.43 4.55 4.55 4.61 4.51 4.50 4.50 4.69 4.18 4.74
AVERAGE ANNUAL TOTAL RETURN AS OF 06/30/05 (%)
SHARE CLASS A B C D G T Z
- -------------------------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- -------------------------------------------------------------------------------------------------------------------------------
1-year 2.64 -2.26 1.86 -3.14 2.50 1.50 2.48 1.48 2.08 -2.92 2.73 -2.17 2.89
- -------------------------------------------------------------------------------------------------------------------------------
5-year 4.57 3.55 4.14 3.80 4.35 4.35 4.48 4.27 4.26 3.75 4.62 3.61 4.72
- -------------------------------------------------------------------------------------------------------------------------------
10-year 4.72 4.21 4.51 4.51 4.61 4.61 4.68 4.57 4.57 4.57 4.75 4.24 4.80
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.
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.
All results shown assume reinvestment of distributions. Class Z shares are sold
at net asset value with no Rule 12b-1 fees. Class Z shares have limited
eligibility and the investment minimum requirement may vary. Please see the
fund's prospectus for details.
Performance for different share classes will vary based on differences in sales
charges and fees associated with each class.
Effective October 13, 2003, class D shares are closed to all new investors and
new accounts. Existing class D shareholders will be able to make additional
purchases at any time. In addition, class D sales charge of 1.00% is waived
after October 13, 2003.
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.
30
UNDERSTANDING YOUR EXPENSES ____________________________________________________
COLUMBIA SHORT TERM BOND FUND
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
MANAGEMENT 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
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
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
03/01/05 - 08/31/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
- -----------------------------------------------------------------------------------------------------------------------------
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
- -----------------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,000.00 1,014.01 1,020.82 4.42 4.43 0.87
- -----------------------------------------------------------------------------------------------------------------------------
Class B 1,000.00 1,000.00 1,010.18 1,017.04 8.21 8.24 1.62
- -----------------------------------------------------------------------------------------------------------------------------
Class C 1,000.00 1,000.00 1,013.41 1,020.06 5.18 5.19 1.02
- -----------------------------------------------------------------------------------------------------------------------------
Class D 1,000.00 1,000.00 1,013.41 1,020.06 5.18 5.19 1.02
- -----------------------------------------------------------------------------------------------------------------------------
Class G 1,000.00 1,000.00 1,011.29 1,018.05 7.20 7.22 1.42
- -----------------------------------------------------------------------------------------------------------------------------
Class T 1,000.00 1,000.00 1,014.62 1,021.32 3.91 3.92 0.77
- -----------------------------------------------------------------------------------------------------------------------------
Class Z 1,000.00 1,000.00 1,015.32 1,022.08 3.15 3.16 0.62
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 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 different funds. If these transactional costs
were included, your costs would have been higher.
COMPARE WITH OTHER FUNDS
Since all mutual funds 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
PORTFOLIO MANAGERS' REPORT _____________________________________________________
COLUMBIA SHORT TERM BOND FUND
(Sidebar)
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.
SUMMARY
o FOR THE 12-MONTH PERIOD ENDED AUGUST 31, 2005, THE FUND'S CLASS A SHARES
RETURNED 1.83% WITHOUT SALES CHARGE.
o THE FUND'S RETURN WAS HIGHER THAN BOTH THE MERRILL LYNCH 1-3 YEAR TREASURY
INDEX AND THE AVERAGE RETURN OF THE LIPPER SHORT INVESTMENT GRADE DEBT
FUNDS CATEGORY.
o THE MATURITY STRUCTURE OF THE PORTFOLIO WAS WELL MATCHED TO INTEREST-RATE
MOVEMENTS DURING THE PERIOD, WHICH AIDED PERFORMANCE.
[UP ARROW] [UP ARROW]
MERRILL LYNCH 1-3
CLASS A SHARES YEAR TREASURY INDEX
1.83% 1.15%
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.
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
$422.5 million
NET ASSET VALUE PER SHARE
AS OF 08/31/05 ($)
Class A 8.56
- -----------------------------------------
Class B 8.56
- -----------------------------------------
Class C 8.56
- -----------------------------------------
Class D 8.56
- -----------------------------------------
Class G 8.56
- -----------------------------------------
Class T 8.56
- -----------------------------------------
Class Z 8.56
For the 12-month period ended August 31, 2005, Columbia Short Term Bond Fund
class A shares returned 1.83% without sales charge. The fund's performance was
higher than the benchmark Merrill Lynch 1-3 Year Treasury Index, which returned
1.15%. The fund also outperformed its peer group, the Lipper Short Term
Investment Grade Debt Category, whose average return was 1.68%. 1 The maturity
structure of the portfolio was well matched to interest-rate movements during
the period, which aided performance.
THE BARBELL MET A FLATTENED YIELD CURVE
Throughout the past 12 months, we maintained a "barbell" structure that
emphasized the short and long ends of the fund's maturity spectrum while
de-emphasizing intermediate maturities. This strategy was a good fit with a
Treasury yield curve that flattened over the course of the year. The yield curve
"flattens" when short-term rates rise relative to long-term rates. Normally, the
yield curve, which displays the progression of yields from short to long-term,
is positively sloped.
In particular, the fund benefited from the Federal Reserve Board (the Fed)
repeated short-term interest rate increases. The Fed raised the federal funds
rate eight times during the reporting period. 2 As short-term securities
matured, we were able to reinvest the proceeds at higher rates than those
available during the past two years. In addition, the coupons on the fund's
floating-rate notes were reset at steadily higher levels as the year went on.
ADDED VALUE OUTSIDE THE TREASURY MARKET
The fund's performance was enhanced by positions in corporate bonds, which
outperformed Treasury bonds for the period as a whole. Industry selection was
generally favorable. The fund was overweight in energy, capital goods and
consumer non-cyclical sectors, which were strong performers during the period.
The fund's exposure to the automotive sector proved to be a slight detriment.
The entire sector came under pressure in the spring when GM and Ford bonds were
downgraded. We eliminated the fund's GMAC holdings and elected to retain small
positions in Ford and Chrysler.
Positions in mortgage-backed and asset-backed securities also aided the fund's
performance, as bonds in these sectors outperformed Treasury securities with
comparable maturities. Our ability to make significant investments in these
longer-term sectors was made possible by the barbell approach, whose short-term
component kept the portfolio's overall duration in check. Duration is a measure
of interest-rate sensitivity.
1 Lipper, Inc., a widely respected data provider in the industry,
calculates an average total return (assuming reinvestment of
distributions) for mutual funds with investment objectives similar to
those of the fund. Lipper makes no adjustments for the effect of sales
loads.
2 The federal funds rate was increased again on August 9, 2005.
32
________________________________________________________________________________
COLUMBIA SHORT TERM BOND FUND
(Sidebar)
DISTRIBUTIONS DECLARED PER SHARE
09/01/04 - 08/31/05 ($)
Class A 0.24
- -----------------------------------------
Class B 0.17
- -----------------------------------------
Class C 0.22
- -----------------------------------------
Class D 0.22
- -----------------------------------------
Class G 0.19
- -----------------------------------------
Class T 0.24
- -----------------------------------------
Class Z 0.26
PORTFOLIO QUALITY AS OF 08/31/05 (%)
Aaa 31.8
- -----------------------------------------
Aa 10.5
- -----------------------------------------
A 17.6
- -----------------------------------------
Baa 9.3
- -----------------------------------------
Agency 22.0
- -----------------------------------------
Treasury 8.8
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 and Poor's, a division of The McGraw-Hill Companies, Inc., Moody's
Investors Service, Inc. or Fitch Ratings Ltd.
PORTFOLIO COMPOSITION AS OF 08/31/05 (%)
Corporate fixed-income
bonds & notes 33.1
- -----------------------------------------
Mortgage-backed securities 21.3
- -----------------------------------------
Collateralized mortgage obligations 16.2
- -----------------------------------------
Asset-backed securities 13.0
- -----------------------------------------
Government agencies & obligations 11.2
- -----------------------------------------
Commercial mortgage-backed
securities 3.4
- -----------------------------------------
Cash & cash equivalents,
net receivables & payables 1.8
MATURITY BREAKDOWN AS OF 08/31/05 (%)
0-1 years 34.7
- -----------------------------------------
1-3 years 41.3
- -----------------------------------------
3-5 years 22.5
- -----------------------------------------
5-10 years 1.5
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.
LOOKING AHEAD
As the trends of the past year unfolded, we took steps to position the portfolio
to take advantage of the prevailing economic environment. Two particular aspects
of this positioning are worth highlighting because we believe they remain
relevant for the year ahead. First, we reduced the fund's commitment to
corporate bonds, noting that their yield advantage over Treasuries has declined
to historically low levels and that the steady rise in short-term interest rates
could begin to crimp corporate profits. Second, we maintained a position in TIPS
(Treasury Inflation Protected Securities) in case the economy experiences
higher-than-expected inflation in the year ahead. The ability of the economy to
weather higher energy prices has been impressive, but recent trends suggest
potential benefits from securities that peg their rates to 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
On September 23, 2005, the Columbia Short Term Bond Fund merged into Nations
Short-Term Income Fund and the Nations Short-Term Income Fund was renamed
Columbia Short Term Bond Fund.
Investing in fixed-income securities may involve 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.
33
PERFORMANCE INFORMATION ________________________________________________________
COLUMBIA FIXED INCOME SECURITIES FUND
PERFORMANCE OF A $10,000 INVESTMENT
09/01/95 - 08/31/05 ($)
SALES CHARGE WITHOUT WITH
- ---------------------------------------
Class A 17,971 17,121
- ---------------------------------------
Class B 17,591 17,591
- ---------------------------------------
Class C 17,640 17,640
- ---------------------------------------
Class D 17,682 17,509
- ---------------------------------------
Class Z 18,142 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.
GROWTH OF A $10,000 INVESTMENT 09/01/95 - 08/31/05
[MOUNTAIN CHART]
CLASS A SHARES CLASS A SHARES LEHMAN BROTHERS
WITHOUT SALES WITH SALES AGGREGATE
CHARGE CHARGE BOND INDEX
-------------- -------------- ---------------
09/95 10000.00 9525.00 10000.00
10109.00 9629.00 10097.00
10241.00 9755.00 10228.00
10398.00 9904.00 10382.00
10548.00 10047.00 10527.00
10612.00 10108.00 10597.00
10416.00 9921.00 10412.00
10347.00 9856.00 10339.00
10267.00 9780.00 10281.00
10245.00 9758.00 10261.00
10389.00 9896.00 10398.00
10406.00 9912.00 10426.00
10398.00 9904.00 10409.00
10585.00 10082.00 10590.00
10809.00 10296.00 10825.00
11009.00 10486.00 11010.00
10905.00 10387.00 10908.00
10948.00 10428.00 10941.00
10982.00 10460.00 10969.00
10866.00 10350.00 10847.00
11025.00 10502.00 11010.00
11128.00 10599.00 11114.00
11256.00 10721.00 11247.00
11565.00 11016.00 11550.00
11463.00 10918.00 11452.00
11628.00 11075.00 11620.00
11804.00 11244.00 11789.00
11840.00 11277.00 11843.00
11947.00 11380.00 11963.00
12091.00 11517.00 12116.00
12081.00 11507.00 12106.00
12109.00 11534.00 12147.00
12172.00 11594.00 12210.00
12292.00 11709.00 12326.00
12392.00 11803.00 12431.00
12411.00 11821.00 12457.00
12613.00 12014.00 12660.00
12853.00 12242.00 12957.00
12739.00 12134.00 12888.00
12793.00 12185.00 12961.00
12838.00 12228.00 13000.00
12929.00 12315.00 13093.00
12681.00 12078.00 12863.00
12762.00 12156.00 12934.00
12804.00 12196.00 12976.00
12652.00 12051.00 12861.00
12596.00 11998.00 12820.00
12511.00 11917.00 12765.00
12486.00 11893.00 12759.00
12640.00 12040.00 12907.00
12675.00 12073.00 12955.00
12691.00 12088.00 12953.00
12641.00 12041.00 12891.00
12567.00 11970.00 12849.00
12695.00 12092.00 13004.00
12856.00 12245.00 13176.00
12811.00 12202.00 13137.00
12801.00 12193.00 13131.00
13078.00 12457.00 13404.00
13171.00 12546.00 13526.00
13372.00 12736.00 13722.00
13465.00 12826.00 13809.00
13539.00 12896.00 13900.00
13786.00 13131.00 14128.00
14065.00 13397.00 14390.00
14314.00 13635.00 14626.00
14439.00 13753.00 14754.00
14517.00 13827.00 14827.00
14425.00 13740.00 14765.00
14522.00 13832.00 14854.00
14564.00 13872.00 14910.00
14898.00 14190.00 15244.00
15041.00 14326.00 15419.00
15199.00 14477.00 15600.00
15506.00 14769.00 15926.00
15312.00 14585.00 15706.00
15209.00 14487.00 15606.00
15302.00 14575.00 15732.00
15426.00 14693.00 15885.00
15209.00 14486.00 15621.00
15490.00 14754.00 15924.00
15608.00 14866.00 16059.00
15665.00 14921.00 16197.00
15816.00 15065.00 16393.00
16086.00 15322.00 16670.00
16321.00 15546.00 16941.00
16132.00 15365.00 16863.00
16114.00 15349.00 16858.00
16359.00 15582.00 17207.00
16379.00 15601.00 17222.00
16606.00 15817.00 17460.00
16595.00 15806.00 17446.00
16719.00 15925.00 17590.00
16987.00 16180.00 17918.00
16932.00 16128.00 17882.00
16392.00 15613.00 17281.00
16495.00 15712.00 17395.00
16914.00 16111.00 17856.00
16765.00 15969.00 17690.00
16757.00 15961.00 17732.00
16911.00 16108.00 17913.00
17041.00 16232.00 18057.00
17200.00 16383.00 18252.00
17320.00 16498.00 18388.00
16920.00 16117.00 17910.00
16810.00 16012.00 17839.00
16881.00 16079.00 17940.00
17041.00 16232.00 18118.00
17341.00 16517.00 18464.00
17398.00 16572.00 18514.00
17543.00 16710.00 18669.00
17406.00 16579.00 18520.00
17564.00 16730.00 18690.00
17647.00 16809.00 18808.00
17585.00 16750.00 18697.00
17444.00 16616.00 18602.00
17638.00 16800.00 18853.00
17804.00 16958.00 19057.00
17904.00 17053.00 19161.00
17773.00 16929.00 18987.00
08/05 17971.00 17121.00 19234.00
The chart above shows the growth in value of a hypothetical $10,000 investment
in Class A shares of Columbia Fixed Income Securities Fund during the stated
time period, and does 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 08/31/05 (%)
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
- ---------------------------------------------------------------------------------------------------------------------
1-year 3.63 -1.28 2.86 -2.07 3.01 2.02 3.01 2.03 3.83
- ---------------------------------------------------------------------------------------------------------------------
5-year 6.09 5.06 5.64 5.32 5.70 5.70 5.75 5.53 6.29
- ---------------------------------------------------------------------------------------------------------------------
10-year 6.04 5.52 5.81 5.81 5.84 5.84 5.87 5.76 6.14
AVERAGE ANNUAL TOTAL RETURN AS OF 06/30/05 (%)
SHARE CLASS A B C D Z
- ---------------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- ---------------------------------------------------------------------------------------------------------------------
1-year 6.07 1.02 5.28 0.28 5.44 4.44 5.43 4.43 6.27
- --------------------------------------------------------------------------------------------------------------------
5-year 6.49 5.46 6.06 5.74 6.11 6.11 6.16 5.94 6.68
- --------------------------------------------------------------------------------------------------------------------
10-year 6.10 5.59 5.89 5.89 5.92 5.92 5.94 5.84 6.20
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.
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.
All results shown assume reinvestment of distributions. Class Z shares are sold
at net asset value with no Rule 12b-1 fees. Class Z shares have limited
eligibility and the investment minimum requirement may vary. Please see the
fund's prospectus for details.
Performance for different share classes will vary based on differences in sales
charges and fees associated with each class.
Effective October 13, 2003, class D shares are closed to all new investors and
new accounts. Existing class D shareholders will be able to make additional
purchases at any time. In addition, the class D sales charge of 1.00% is waived
after October 13, 2003.
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
UNDERSTANDING YOUR EXPENSES ____________________________________________________
COLUMBIA FIXED INCOME SECURITIES FUND
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
MANAGEMENT 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
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
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
03/01/05 - 08/31/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
- -------------------------------------------------------------------------------------------------------------------------------
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
- -------------------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,000.00 1,021.88 1,019.81 5.45 5.45 1.07
- -------------------------------------------------------------------------------------------------------------------------------
Class B 1,000.00 1,000.00 1,018.00 1,016.03 9.26 9.25 1.82
- -------------------------------------------------------------------------------------------------------------------------------
Class C 1,000.00 1,000.00 1,018.80 1,016.79 8.50 8.49 1.67
- -------------------------------------------------------------------------------------------------------------------------------
Class D 1,000.00 1,000.00 1,018.80 1,016.79 8.50 8.49 1.67
- -------------------------------------------------------------------------------------------------------------------------------
Class Z 1,000.00 1,000.00 1,022.79 1,021.07 4.18 4.18 0.82
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 different funds. If these transactional costs
were included, your costs would have been higher.
COMPARE WITH OTHER FUNDS
Since all mutual funds 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
PORTFOLIO MANAGERS' REPORT _____________________________________________________
COLUMBIA FIXED INCOME SECURITIES FUND
(Sidebar)
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.
SUMMARY
o FOR THE 12-MONTH PERIOD ENDED AUGUST 31, 2005, THE FUND'S CLASS A SHARES
RETURNED 3.63% WITHOUT SALES CHARGE.
o IN AN ENVIRONMENT OF RISING SHORT-TERM INTEREST RATES, THE FUND, ITS
BENCHMARK AND ITS PEER GROUP DELIVERED MODEST BUT SOLID RETURNS.
o THE FUND'S CORPORATE AND MORTGAGE-BACKED HOLDINGS AIDED PERFORMANCE. LESS
EXPOSURE TO AGENCY SECURITIES AND DURATION THAT WAS SHORTER THAN ITS
BENCHMARK DETRACTED SOMEWHAT FROM PERFORMANCE.
[UP ARROW] [UP ARROW]
LEHMAN BROTHERS
AGGREGATE
CLASS A SHARES BOND INDEX
3.63% 4.15%
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.
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
$249.6 million
NET ASSET VALUE PER SHARE
AS OF 08/31/05 ($)
Class A 13.30
- -----------------------------------------
Class B 13.30
- -----------------------------------------
Class C 13.30
- -----------------------------------------
Class D 13.30
- -----------------------------------------
Class Z 13.30
For the 12-month period ended August 31, 2005, Columbia Fixed Income Securities
Fund class A shares returned 3.63% without sales charge. By comparison, the
Lehman Brothers Aggregate Bond Index and the Lipper Corporate Debt Funds A Rated
Category average returned 4.15% and 4.14%, respectively, over the same period. 1
Two factors accounted for the slight gap between the fund's performance and its
benchmark and peers: We believe it had less exposure to agency securities, which
were strong performers. And, its overall duration was shorter. Duration is a
measure of interest rate sensitivity; and in a period that favored longer-term
securities, this positioning detracted from performance. 2
AN UNUSUAL ENVIRONMENT FOR BONDS
Fixed-income investors faced an unusual combination of circumstances during the
past 12 months. Seldom, if ever, has the Federal Reserve Board (the Fed)
sustained effort to raise short-term interest rates higher been accompanied by
such a persistent decline in long-term rates. The Fed raised the federal funds
rate a total of eight times during the period, reflecting a backdrop of steady
yet unspectacular growth in the national economy.
However, long-term rates were insulated from the Fed's efforts. While yields on
2-year Treasury obligations rose by 1.42 percentage points over the past year,
yields on 10-year and 30-year bonds fell by 10 and 67 basis points,
respectively. (A basis point is one hundredth of one percent.) Because we
expected long-term rates to rise along with short-term rates, in keeping with
historical precedent, we kept the portfolio's duration relatively short during
the period. This strategy hampered returns during the period as long-term bonds
exhibited unexpected strength.
CORPORATE BONDS AND MORTGAGES PROVE THEIR WORTH
The fund was helped during the period by our willingness to move outside the
Treasury market into corporate bonds, mortgage-backed securities and
asset-backed securities. Each of these sectors outperformed Treasury securities
of comparable maturities, aided by the combination of rising corporate profits
and stable-to-lower long-term rates.
Our security selection within these sectors also added to the fund's returns.
Within the corporate bond market, we overweighted strong-performing industries
such as energy, capital goods and consumer non-cyclicals. Within the mortgage
arena, the fund's exposure to 15-year mortgage collateral was especially helpful
to overall performance. These securities did better than longer-term mortgage
obligations.
LOOKING AHEAD
As the trends of the past year unfolded, we took steps to position the portfolio
to take advantage of the prevailing economic environment. Two
1 Lipper Inc., a widely respected data provider in the industry, calculates
an average total return (assuming reinvestment of distributions) for
mutual funds with investment objectives similar to those of the fund.
Lipper makes no adjustment for the effect of sales loads.
2 The federal funds rate was increased again on August 9, 2005.
36
________________________________________________________________________________
COLUMBIA FIXED INCOME SECURITIES FUND
(Sidebar)
DISTRIBUTIONS DECLARED PER SHARE
09/01/04 - 08/31/05 ($)
Class A 0.67
- -----------------------------------------
Class B 0.57
- -----------------------------------------
Class C 0.59
- -----------------------------------------
Class D 0.59
- -----------------------------------------
Class Z 0.69
Distributions include $0.14 per share of taxable realized gains.
PORTFOLIO QUALITY AS OF 08/31/05 (%)
Treasury/Agency 50.4
- -----------------------------------------
Aaa 14.3
- -----------------------------------------
Aa 5.5
- -----------------------------------------
A 13.9
- -----------------------------------------
Baa 10.2
- -----------------------------------------
Ba 3.8
- -----------------------------------------
B 1.8
- -----------------------------------------
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 and Poor's, a division of The McGraw-Hill Companies, Inc., Moody's
Investors Service, Inc. or Fitch Ratings Ltd.
PORTFOLIO COMPOSITION AS OF 08/31/05 (%)
Mortgage-backed securities 39.4
- -----------------------------------------
Corporate fixed-income
bonds & notes 33.9
- -----------------------------------------
Government agencies & obligations 11.6
- -----------------------------------------
Collateralized mortgage obligations 5.7
- -----------------------------------------
Asset-backed securities 3.3
- -----------------------------------------
Commercial mortgage-backed
securities 1.3
- -----------------------------------------
Cash & cash equivalents,
net receivables & payables 4.8
MATURITY BREAKDOWN AS OF 08/31/05 (%)
0-1 years 13.4
- -----------------------------------------
1-5 years 57.6
- -----------------------------------------
5-10 years 18.3
- -----------------------------------------
10-20 years 3.0
- -----------------------------------------
20+ years 7.7
Your fund is actively managed and the composition of its portfolio will change
over time. Portfolio composition and maturity breakdown discussed are calculated
as a percentage of net assets.
particular aspects of this positioning are worth highlighting, because we
believe they remain relevant for the year ahead.
First, we reduced our commitment to corporate bonds, noting that their yield
advantage over Treasuries has declined to historically low levels and that the
steady rise in short-term rates may begin to crimp corporate profits. In
addition, we maintained a position in TIPS (Treasury Inflation Protected
Securities) in case the economy experiences higher- than-expected inflation in
the year ahead. The ability of the economy to weather higher energy prices has
been impressive, but recent trends suggest potential benefits for securities
that peg their rates to inflation.
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
On October 7, 2005, the Columbia Fixed Income Securities Fund merged into
Columbia Total Return Bond Fund.
Investing in fixed-income securities may involve 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.
37
PERFORMANCE INFORMATION ________________________________________________________
COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND
PERFORMANCE OF A $10,000 INVESTMENT
09/01/95 - 08/31/05 ($)
SALES CHARGE WITHOUT WITH
- -----------------------------------------
Class A 16,855 16,051
- -----------------------------------------
Class B 16,499 16,499
- -----------------------------------------
Class C 16,612 16,612
- -----------------------------------------
Class D 16,671 16,508
- -----------------------------------------
Class Z 17,008 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.
GROWTH OF A $10,000 INVESTMENT 09/01/95 - 08/31/05
[MOUNTAIN CHART]
CLASS A SHARES CLASS A SHARES LEHMAN BROTHERS
WITHOUT SALES WITH SALES GENERAL OBLIGATION
CHARGE CHARGE BOND INDEX
-------------- -------------- ------------------
09/95 10000.00 9525.00 10000.00
10067.00 9589.00 10064.00
10185.00 9701.00 10179.00
10326.00 9836.00 10322.00
10386.00 9893.00 10404.00
10446.00 9950.00 10505.00
10394.00 9901.00 10456.00
10285.00 9797.00 10340.00
10243.00 9756.00 10304.00
10236.00 9750.00 10288.00
10338.00 9847.00 10392.00
10425.00 9930.00 10490.00
10426.00 9931.00 10489.00
10547.00 10046.00 10618.00
10652.00 10146.00 10742.00
10819.00 10305.00 10942.00
10775.00 10264.00 10899.00
10803.00 10290.00 10928.00
10890.00 10373.00 11027.00
10774.00 10263.00 10885.00
10845.00 10330.00 10970.00
10972.00 10451.00 11133.00
11071.00 10545.00 11254.00
11353.00 10814.00 11545.00
11281.00 10745.00 11442.00
11399.00 10858.00 11573.00
11455.00 10911.00 11637.00
11509.00 10962.00 11691.00
11676.00 11121.00 11857.00
11788.00 11228.00 11979.00
11774.00 11214.00 11989.00
11764.00 11205.00 12000.00
11724.00 11167.00 11936.00
11894.00 11329.00 12132.00
11920.00 11354.00 12176.00
11948.00 11380.00 12205.00
12128.00 11552.00 12398.00
12279.00 11695.00 12564.00
12258.00 11676.00 12566.00
12295.00 11711.00 12608.00
12327.00 11741.00 12649.00
12482.00 11889.00 12815.00
12386.00 11797.00 12750.00
12393.00 11805.00 12755.00
12429.00 11839.00 12791.00
12316.00 11731.00 12719.00
12141.00 11564.00 12533.00
12188.00 11610.00 12583.00
12084.00 11510.00 12509.00
12090.00 11515.00 12520.00
11965.00 11397.00 12411.00
12085.00 11511.00 12538.00
11999.00 11429.00 12459.00
11925.00 11358.00 12413.00
12025.00 11454.00 12537.00
12275.00 11692.00 12790.00
12209.00 11629.00 12725.00
12133.00 11557.00 12658.00
12427.00 11836.00 12983.00
12596.00 11997.00 13154.00
12787.00 12180.00 13342.00
12719.00 12115.00 13274.00
12858.00 12247.00 13414.00
12941.00 12327.00 13508.00
13231.00 12603.00 13826.00
13382.00 12747.00 13977.00
13420.00 12782.00 14019.00
13528.00 12886.00 14142.00
13382.00 12747.00 13995.00
13525.00 12883.00 14137.00
13611.00 12964.00 14224.00
13798.00 13143.00 14426.00
14021.00 13355.00 14659.00
13983.00 13319.00 14626.00
14160.00 13488.00 14776.00
13998.00 13333.00 14646.00
13832.00 13175.00 14528.00
14058.00 13390.00 14767.00
14222.00 13547.00 14947.00
13966.00 13303.00 14661.00
14240.00 13564.00 14963.00
14330.00 13649.00 15046.00
14499.00 13810.00 15214.00
14693.00 13995.00 15403.00
14866.00 14160.00 15578.00
15192.00 14470.00 15893.00
14914.00 14206.00 15636.00
14801.00 14098.00 15559.00
15092.00 14375.00 15864.00
15033.00 14319.00 15837.00
15266.00 14541.00 16056.00
15254.00 14530.00 16086.00
15361.00 14631.00 16191.00
15725.00 14978.00 16548.00
15639.00 14896.00 16469.00
15080.00 14364.00 15922.00
15178.00 14457.00 16070.00
15635.00 14892.00 16531.00
15521.00 14784.00 16421.00
15684.00 14939.00 16555.00
15813.00 15061.00 16673.00
15873.00 15119.00 16756.00
16163.00 15395.00 17019.00
16045.00 15283.00 16973.00
15646.00 14902.00 16591.00
15643.00 14899.00 16568.00
15704.00 14958.00 16633.00
15883.00 15128.00 16834.00
16192.00 15423.00 17157.00
16254.00 15482.00 17240.00
16368.00 15590.00 17376.00
16220.00 15450.00 17225.00
16408.00 15629.00 17412.00
16523.00 15738.00 17543.00
16442.00 15661.00 17475.00
16307.00 15533.00 17354.00
16572.00 15784.00 17623.00
16661.00 15870.00 17743.00
16783.00 15986.00 17839.00
16672.00 15880.00 17737.00
08/05 a16855.00 16051.00 17907.00
The chart above shows the growth in value of a hypothetical $10,000 investment
in Class A shares of Columbia Oregon Intermediate Municipal Bond Fund during the
stated time period, and does 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 a unmanaged index that
represents average market-weighted performance of general obligation securities
that have been issued in the last five years with maturities greater than one
year. Unlike the fund, indices are not investments, do not incur fees or
expenses and are not professionally managed. It is not possible to invest
directly in an index. Securities in the fund may not match those in an index.
AVERAGE ANNUAL TOTAL RETURN AS OF 08/31/05 (%)
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
- ------------------------------------------------------------------------------------------------------------------------
1- year 4.05 -0.90 3.26 -1.74 3.64 2.64 3.62 2.62 4.31
- ------------------------------------------------------------------------------------------------------------------------
5-year 5.67 4.66 5.22 4.90 5.37 5.37 5.44 5.23 5.87
- ------------------------------------------------------------------------------------------------------------------------
10-year 5.36 4.85 5.13 5.13 5.21 5.21 5.24 5.14 5.45
AVERAGE ANNUAL TOTAL RETURN AS OF 06/30/05 (%)
SHARE CLASS A B C D Z
- -----------------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- -----------------------------------------------------------------------------------------------------------------------
1- year 6.88 1.81 6.07 1.07 6.48 5.48 6.45 6.45 7.15
- -----------------------------------------------------------------------------------------------------------------------
5-year 6.20 5.18 5.78 5.45 5.91 5.91 5.98 5.77 6.38
- -----------------------------------------------------------------------------------------------------------------------
10-year 5.54 5.03 5.33 5.33 5.40 5.40 5.43 5.43 5.63
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.
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.
All results shown assume reinvestment of distributions. Class Z shares are sold
at net asset value with no Rule 12b-1 fees. Class Z shares have limited
eligibility and the investment minimum requirement may vary. Please see the
fund's prospectus for details.
Performance for different share classes will vary based on differences in sales
charges and fees associated with each class.
Effective August 22, 2005, new purchases of class A shares have a maximum
initial sales charge of 3.25%.
Effective October 13, 2003, class D shares are closed to all new investors and
new accounts. Existing class D shareholders will be able to make additional
purchases at any time. In addition, class D sales charge of 1.00% is waived
after October 13, 2003.
Classes A, B, and D (newer class shares) share performance information includes
returns of the fund's class Z shares (the oldest existing fund class) for
periods prior to the inception of the newer class shares. The returns for class
C include the returns of class B prior to 10/13/03, the date on which class C
was initially offered by the fund. The returns shown for class C also include
the performance of class Z prior to the inception of class B (11/01/02). Class Z
share returns are not restated to reflect any expense differential (e.g., Rule
12b-1 fees) between class Z shares and the newer class shares. Had the expense
differential been reflected, the returns for the periods prior to the inception
of classes A, B, C, and D would have been lower.
38
UNDERSTANDING YOUR EXPENSES ____________________________________________________
COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND
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
MANAGEMENT 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
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
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
03/01/05 - 08/31/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
- --------------------------------------------------------------------------------------------------------------------------
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
- --------------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,000.00 1,024.50 1,020.82 4.44 4.43 0.87
- --------------------------------------------------------------------------------------------------------------------------
Class B 1,000.00 1,000.00 1,020.72 1,017.04 8.25 8.24 1.62
- --------------------------------------------------------------------------------------------------------------------------
Class C 1,000.00 1,000.00 1,022.38 1,018.80 6.47 6.46 1.27
- --------------------------------------------------------------------------------------------------------------------------
Class D 1,000.00 1,000.00 1,022.38 1,018.80 6.47 6.46 1.27
- --------------------------------------------------------------------------------------------------------------------------
Class Z 1,000.00 1,000.00 1,025.81 1,022.08 3.17 3.16 0.62
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 different funds. If these transactional costs
were included, your costs would have been higher.
COMPARE WITH OTHER FUNDS
Since all mutual funds 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
PORTFOLIO MANAGER'S REPORT _____________________________________________________
COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND
(Sidebar)
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.
SUMMARY
o FOR THE 12-MONTH PERIOD ENDED AUGUST 31, 2005, THE FUND'S CLASS A SHARES
RETURNED 4.05% WITHOUT SALES CHARGE.
o THE FUND RETURNED SLIGHTLY LESS THAN ITS BENCHMARK, THE LEHMAN BROTHERS
GENERAL OBLIGATION BOND INDEX. HOWEVER IT CAME OUT SOLIDLY AHEAD OF THE
AVERAGE FOR ITS PEER GROUP, THE LIPPER OTHER STATES INTERMEDIATE MUNICIPAL
DEBT FUNDS CATEGORY.
o THE FUND'S FOCUS ON BONDS WITH RELATIVELY LONG MATURITIES AT A TIME WHEN
SHORTER-TERM ISSUES WERE UNDER PRESSURE, AIDED PERFORMANCE. HOWEVER, THE
INDEX HAD EVEN MORE EXPOSURE TO LONGER-TERM ISSUES, WHICH EXPLAINS THE
MODEST GAP IN PERFORMANCE BETWEEN THE FUND AND ITS BENCHMARK.
[UP ARROW] [UP ARROW]
LEHMAN BROTHERS
GENERAL OBLIGATION
CLASS A SHARES BOND INDEX
4.05% 4.41%
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.
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
$417.6 million
For the 12-month period ended August 31, 2005, Columbia Oregon Intermediate
Municipal Bond Fund class A shares returned 4.05% without sales charge. This was
less than the fund's benchmark, the Lehman Brothers General Obligation Bond
Index, which returned 4.41%. The fund outperformed its peer group, the Lipper
Other States Intermediate Municipal Debt Funds Category, which returned an
average of 2.48%. 1 In January we changed the fund's peer group from the Lipper
Oregon Funds Category because we felt the new peer group was a better match with
the fund's strategy. Funds in the former peer group tend to own bonds with
longer maturities, Columbia Oregon Intermediate Municipal Bond Fund targets an
intermediate maturity range. The fund's focus on bonds with relatively long
maturities at a time when shorter-term issues were under pressure aided
performance. However, the fund had less exposure than the index to
better-performing long-term issues, which accounted for its slight
underperformance.
LONGER-TERM INTERMEDIATES AIDED RESULTS WHILE HOUSING ISSUES HURT
Our decision to emphasize intermediate-term bonds with longer maturities was
rewarded as declining rates brought higher prices in the longer end of the
intermediate-term market. These rate declines occurred despite a string of
Federal Reserve Board (the Fed) hikes, which drove down prices of shorter-term
issues. The fund also benefited from owning zero-coupon issues, which pay no
income but are issued at a discount to face value. Zeroes were the market's
strongest sector over this period. The fund's call-protected bonds also did
well. Investors favored bonds with good safeguards against untimely recalls by
issuers seeking to refinance at lower rates. Hospital bonds were strong
performers during the period, and the fund's lower- and non-rated bonds also did
well as economic conditions improved.
We are pleased to report that the bonds of the Oregon Coast Aquarium, which had
been in default, rose sharply once the Aquarium's debt was restructured, an
initiative in which we collaborated. As a result, the fund also received the
majority of back interest due. However, we sold the bonds below their purchase
price and their sale generated a net loss for the fund. The fund continued to
experience disappointing results from the housing sector, where some bonds were
called away at prices below market levels. In addition, holdings in the
one-to-five year maturity range felt the pressure of rising short-term rates.
1 Lipper Inc., a widely respected data provider in the industry, calculates
an average total return (assuming reinvestment of distributions) for
mutual funds with investment objectives similar to those of the fund.
Lipper makes no adjustment for the effect of sales loads.
40
________________________________________________________________________________
COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND
(Sidebar)
NET ASSET VALUE PER SHARE
AS OF 08/31/05 ($)
Class A 12.45
- -----------------------------------------
Class B 12.45
- -----------------------------------------
Class C 12.45
- -----------------------------------------
Class D 12.45
- -----------------------------------------
Class Z 12.45
DISTRIBUTIONS DECLARED PER SHARE
09/01/04 - 08/31/05 ($)
Class A 0.49
- -----------------------------------------
Class B 0.40
- -----------------------------------------
Class C 0.44
- -----------------------------------------
Class D 0.44
- -----------------------------------------
Class Z 0.52
Distributions include $0.04 per share of taxable realized gains.
PORTFOLIO QUALITY AS OF 08/31/05 (%)
AAA 48.9
- -----------------------------------------
AA 32.8
- -----------------------------------------
A 4.9
- -----------------------------------------
BBB 4.6
- -----------------------------------------
Non rated 7.9
- -----------------------------------------
Net cash & equivalents 0.9
Ratings shown in the quality breakdown represent the rating assigned to a
particular bond by one of the following nationally recognized rating agencies:
Standard and Poor's, a division of The McGraw-Hill Companies, Inc., Moody's
Investors Service, Inc. or Fitch Ratings Ltd.
TOP 5 SECTORS AS OF 08/31/05 (%)
Refunded/escrowed 24.9
- -----------------------------------------
Local general obligations 22.0
- -----------------------------------------
Hospitals 11.1
- -----------------------------------------
Special property tax 6.9
- -----------------------------------------
Education 5.9
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.
MATURITY BREAKDOWN AS OF 08/31/05 (%)
0-1 years 0.5
- -----------------------------------------
1-3 years 2.6
- -----------------------------------------
3-5 years 10.4
- -----------------------------------------
5-7 years 21.9
- -----------------------------------------
7-10 years 23.4
- -----------------------------------------
10-15 years 22.8
- -----------------------------------------
15-20 years 13.7
- -----------------------------------------
20-25 years 1.4
- -----------------------------------------
25+ years 2.4
- -----------------------------------------
Net cash & equivalents 0.9
Portfolio quality and maturity breakdown are calculated as a percentage of total
investments.
OREGON'S SLOW RECOVERY CONTINUED
The pace of Oregon's economic recovery remained slower than rebounds in other
states. Unemployment stood at 6.5% in June, a marked improvement from 2003's
peak of 8.3%, but still above the national average. The state's above-average
debt level appears manageable, given improving economic prospects and projected
increases in personal income taxes and other revenue streams. However, Oregon's
reserves will have to be bolstered before it is likely to merit a boost in its
AA- bond rating.
FAVORABLE OUTLOOK HINGES ON ECONOMIC GROWTH
As long as economic growth continues, we believe that increased tax revenues
should strengthen balance sheets for state and local governments. And with signs
that the economic expansion could be slowing, the Fed may soon reevaluate its
long campaign of short-term rate increases. With those expectations in mind, we
plan to continue to emphasize longer-maturity, higher-yielding issues because we
believe that they offer greater return potential. We also plan to continue to
focus on bonds with good call protection as we seek to maintain an attractive
yield for our shareholders. We have cut exposure to bonds subject to the
Alternative Minimum Tax (AMT) to less than 1% of the portfolio. Our goal is to
deliver more net after-tax yield as the AMT affects growing numbers of
taxpayers. Any changes in the tax law could lead us to rethink this strategy.
Brian McGreevy has managed the Columbia Oregon Intermediate
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.
41
PERFORMANCE INFORMATION ________________________________________________________
COLUMBIA CONSERVATIVE HIGH YIELD FUND
PERFORMANCE OF A $10,000 INVESTMENT
09/01/95 - 08/31/05 ($)
SALES CHARGE WITHOUT WITH
- -----------------------------------------
Class A 19,426 18,501
- -----------------------------------------
Class B 18,995 18,995
- -----------------------------------------
Class C 19,037 19,037
- -----------------------------------------
Class D 19,084 18,887
- -----------------------------------------
Class Z 19,572 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.
GROWTH OF A $10,000 INVESTMENT 09/01/95 - 08/31/05
[MOUNTAIN CHART]
CLASS A CLASS A MERRILL LYNCH US
SHARES WITHOUT SHARES WITH HIGH YIELD, CASH
SALES CHARGE SALES CHARGE PAY ONLY INDEX
-------------- ------------ ----------------
09/95 10000 9525 10000
10162 9679 10114
10296 9807 10186
10414 9919 10286
10581 10079 10451
10728 10219 10616
10764 10252 10632
10642 10137 10604
10627 10122 10609
10637 10131 10685
10666 10160 10749
10745 10235 10822
10950 10429 10934
11139 10610 11169
11262 10727 11292
11498 10952 11520
11580 11030 11609
11682 11127 11698
11859 11296 11862
11680 11125 11730
11818 11257 11864
12101 11527 12104
12254 11672 12288
12584 11986 12582
12572 11975 12561
12741 12136 12770
12729 12125 12854
12874 12263 12976
13049 12430 13099
13262 12632 13294
13340 12707 13349
13423 12786 13464
13490 12849 13527
13532 12889 13622
13628 12981 13690
13794 13139 13768
13247 12618 13173
13481 12841 13199
13417 12779 12983
13859 13201 13574
13863 13205 13578
14034 13367 13712
13957 13294 13608
14123 13452 13725
14223 13548 13939
14040 13373 13843
13996 13331 13817
13982 13318 13837
13904 13243 13696
13889 13229 13644
13891 13231 13564
14118 13447 13718
14193 13518 13790
14120 13449 13721
14133 13462 13733
14052 13385 13541
14117 13446 13545
14109 13438 13396
14405 13721 13625
14534 13844 13723
14780 14078 13890
14780 14078 13810
14656 13960 13405
14446 13760 12986
14847 14141 13267
15356 14626 14058
15485 14749 14280
15404 14673 14092
15367 14637 13938
15467 14732 14206
15331 14603 13913
15517 14779 14129
15718 14972 14266
15104 14386 13351
15622 14880 13744
16031 15270 14191
15832 15080 14090
15927 15171 14169
15782 15033 14033
15931 15174 14367
16005 15245 14595
15973 15215 14516
15568 14828 13484
15309 14582 12948
15547 14808 13271
15486 14750 13059
15466 14731 12949
15902 15147 13721
16007 15247 13930
16146 15379 14331
16274 15501 14516
16554 15767 14891
16929 16125 15728
16943 16138 15898
17150 16335 16332
16824 16025 16099
16937 16132 16310
17304 16482 16745
17498 16667 17087
17605 16768 17322
17795 16950 17724
17966 17112 18001
18034 17177 17994
18189 17325 18120
18029 17173 17989
17676 16836 17701
17829 16982 17960
18111 17251 18206
18444 17568 18535
18726 17837 18793
18989 18087 19150
18998 18096 19343
19068 18163 19632
19030 18126 19616
19261 18346 19893
18719 17830 19351
18684 17796 19150
19020 18117 19503
19273 18358 19873
19418 18495 20183
08/05 19426 18501 20249
The chart above shows the growth in value of a hypothetical $10,000 investment
in Class A shares of Columbia Conservative High Yield Fund during the stated
time period, and does 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 08/31/05 (%)
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
- ---------------------------------------------------------------------------------------------------------
1-year 5.31 0.35 4.53 -0.43 4.69 3.69 4.69 3.62 5.54
- ---------------------------------------------------------------------------------------------------------
5-year 5.61 4.59 5.14 4.83 5.19 5.19 5.24 5.03 5.77
- ---------------------------------------------------------------------------------------------------------
10-year 6.87 6.35 6.63 6.63 6.65 6.65 6.68 6.57 6.95
AVERAGE ANNUAL TOTAL RETURN AS OF 06/30/05 (%)
SHARE CLASS A B C D Z
- --------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- --------------------------------------------------------------------------------------------------------
1-year 8.09 3.00 7.29 2.29 7.46 6.46 7.45 6.32 8.34
- --------------------------------------------------------------------------------------------------------
5-year 5.99 4.97 5.54 5.24 5.59 5.59 5.64 5.43 6.14
- --------------------------------------------------------------------------------------------------------
10-year 6.95 6.43 6.72 6.72 6.74 6.74 6.77 6.66 7.02
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.
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.
All results shown assume reinvestment of distributions. Class Z shares are sold
at net asset value with no Rule 12b-1 fees. Class Z shares have limited
eligibility and the investment minimum requirement may vary. Please see the
fund's prospectus for details.
Performance for different share classes will vary based on differences in sales
charges and fees associated with each class.
Effective October 13, 2003, class D shares are closed to all new investors and
new accounts. Existing class D shareholders will be able to make additional
purchases at any time. In addition, class D sales charge of 1.00% is waived
after October 13, 2003.
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
UNDERSTANDING YOUR EXPENSES ____________________________________________________
COLUMBIA CONSERVATIVE HIGH YIELD FUND
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
MANAGEMENT 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
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
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
03/01/05 - 08/31/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
- --------------------------------------------------------------------------------------------------------------------
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
- --------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,000.00 1,008.52 1,020.47 4.76 4.79 0.94
- --------------------------------------------------------------------------------------------------------------------
Class B 1,000.00 1,000.00 1,004.69 1,016.69 8.54 8.59 1.69
- --------------------------------------------------------------------------------------------------------------------
Class C 1,000.00 1,000.00 1,005.49 1,017.44 7.78 7.83 1.54
- --------------------------------------------------------------------------------------------------------------------
Class D 1,000.00 1,000.00 1,005.49 1,017.44 7.78 7.83 1.54
- --------------------------------------------------------------------------------------------------------------------
Class Z 1,000.00 1,000.00 1,009.58 1,021.73 3.50 3.52 0.69
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 expense 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 different funds. If these transactional costs
were included, your costs would have been higher.
COMPARE WITH OTHER FUNDS
Since all mutual funds 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
PORTFOLIO MANAGERS' REPORT _____________________________________________________
COLUMBIA CONSERVATIVE HIGH YIELD FUND
(Sidebar)
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.
SUMMARY
o FOR THE 12-MONTH PERIOD ENDED AUGUST 31, 2005, THE FUND'S CLASS A SHARES
RETURNED 5.31% WITHOUT SALES CHARGE.
o SOLID ECONOMIC GROWTH AND LOW INTEREST RATES CREATED AN ENVIRONMENT THAT
WAS FAVORABLE FOR HIGH-YIELD INVESTMENTS.
o THE FUND'S RELATIVE PERFORMANCE WAS HURT BY ITS EMPHASIS ON HIGHER QUALITY
BONDS AT A TIME WHEN THE FIXED-INCOME MARKETS REWARDED RISK-TAKING.
[UP ARROW] [UP ARROW]
MERRILL LYNCH US
HIGH YIELD, CASH
CLASS A SHARES PAY ONLY INDEX
5.31% 9.28%
THE MERRILL LYNCH US HIGH YIELD, CASH PAY ONLY INDEX IS AN UNMANAGED INDEX THAT
TRACKS THE PERFORMANCE OF NON-INVESTMENT-GRADE CORPORATE BONDS.
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
$1,561.1 million
For the 12-month period ended August 31, 2005, Columbia Conservative High Yield
Fund class A shares returned 5.31% without sales charge. The fund underperformed
the Merrill Lynch US High Yield, Cash Pay Only Index, which returned 9.28%. Its
return was also below the 8.28% average return of its peer group, the Lipper
High Current Yield Funds Category. 1 The fund's emphasis on higher quality
investments at a time when lower quality issuers were gaining favor among
high-yield investors hurt competitive results. The fund's average credit quality
was higher than the index and also, we believe, higher than its peer group
average, a strategy that we believe is prudent for the longer term.
Macroeconomic conditions were favorable for the high-yield marketplace over the
past 12 months. The economy's steady growth enabled corporate issuers to improve
their balance sheets, a special boon to lower quality issuers. The Merrill Lynch
Cash Pay CCC Index advanced 12.99% for the year, mirroring the 12.56% advance in
the S&P 500 and outpacing the Intermediate BB Index by six percentage points.
Our preference for higher quality investments led us to underweight the electric
utility and telecommunications sectors, both of which outperformed the overall
market. However, the fund established a small position in electric utilities,
including an investment in AES, which was a strong performer during the period.
We also increased the fund's exposure to energy-related investments from 11.0%
to 14.4%.
In terms of individual holdings, the fund benefited from the strong operating
performance of its holdings in the leisure sector, notably Royal Caribbean
Cruises and Speedway Motorsports. Peabody Energy, the nation's largest coal
enterprise, was another strong performer. Although customer deliveries were
affected by a series of rail disruptions, Peabody Energy was nonetheless a major
beneficiary of record-high coal prices.
Poor performers included paper and forest products concerns Boise Cascade and
Stone Container. Both companies were hurt by stiff price competition within
their primary markets. Cinemark USA was also a weak performer, held back by a
spate of disappointing Hollywood releases that dampened theater attendance
nationwide.
We continue to believe that high-yield investments offer attractive prospects.
The absence of meaningful inflationary pressures outside of the energy sector is
likely to keep long-term bond yields in check, a plus for fixed-income
investments in general. While it is possible that persistently high energy
prices could restrain economic growth and bring inflation back into play, we
believe that the fund's heavy weight in the energy sector has the potential to
help insulate the portfolio from that scenario. Finally, from the standpoint of
relative performance, the yield advantage of lower quality issues has narrowed
considerably over the past two years, making it less likely that CCC and other
low-rated bonds will continue to outperform. In that regard, we plan to continue
the fund's emphasis on higher quality bonds.
1 Lipper Inc., a widely respected data provider in the industry, calculates
an average total return (assuming reinvestment of distributions) for
mutual funds with investment objectives similar to those of the fund.
Lipper makes no adjustment for the effect of sales loads.
44
________________________________________________________________________________
COLUMBIA CONSERVATIVE HIGH YIELD FUND
(Sidebar)
NET ASSET VALUE PER SHARE
AS OF 08/31/05 ($)
Class A 8.62
- -----------------------------------------
Class B 8.62
- -----------------------------------------
Class C 8.62
- -----------------------------------------
Class D 8.62
- -----------------------------------------
Class Z 8.62
DISTRIBUTIONS DECLARED PER SHARE
09/01/04 - 08/31/05 ($)
Class A 0.52
- -----------------------------------------
Class B 0.46
- -----------------------------------------
Class C 0.47
- -----------------------------------------
Class D 0.47
- -----------------------------------------
Class Z 0.54
PORTFOLIO QUALITY AS OF 08/31/05 (%)
Baa 2.9
- -----------------------------------------
Ba 61.5
- -----------------------------------------
B 33.8
- -----------------------------------------
Caa 1.8
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 and Poor's, a division of The McGraw-Hill Companies, Inc., Moody's
Investors Service, Inc. or Fitch Ratings Ltd.
TOP 5 SECTORS AS OF 08/31/05 (%)
Consumer Cyclical 22.2
- -----------------------------------------
Consumer Non-Cyclical 17.9
- -----------------------------------------
Industrials 16.4
- -----------------------------------------
Energy 14.4
- -----------------------------------------
Communications 12.9
HOLDINGS DISCUSSED IN THIS REPORT
AS OF 08/31/05 (%)
AES 1.3
- -----------------------------------------
Royal Caribbean Cruises 2.0
- -----------------------------------------
Speedway Motorsports 1.1
- -----------------------------------------
Peabody Energy 2.0
- -----------------------------------------
Boise Cascade 1.1
- -----------------------------------------
Stone Container 1.0
- -----------------------------------------
Cinemark USA 1.1
MATURITY BREAKDOWN AS OF 08/31/05 (%)
0-3 years 21.9
- -----------------------------------------
3-5 years 25.4
- -----------------------------------------
5-10 years 52.7
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.
Jeffrey L. Rippey, CFA, has managed or co-managed Columbia
Conservative 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
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
Effective September 20, 2005 Stephen Peacher, Kevin L. Cronk and Thomas A.
LaPoint began co-managing Columbia Conservative High Yield Fund, replacing
Jeffrey L. Rippey and Kurt M. Havnaer. Stephen Peacher, a managing director of
Columbia Management, is the lead manager for the Fund and has been associated
with Columbia Management since April, 2005. Kevin L. Cronk and Thomas A. LaPoint
have been with the advisor or its predecessors or affiliate organization since
1999.
Investing in fixed-income securities may involve 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.
45
PERFORMANCE INFORMATION ________________________________________________________
COLUMBIA DAILY INCOME COMPANY
PERFORMANCE OF A $10,000 INVESTMENT
09/01/95 - 08/31/05 ($)
SALES CHARGE WITHOUT
- -----------------------------------------
Class Z 14,086
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 WILL FLUCTUATE. PLEASE VISIT WWW.COLUMBIAFUNDS.COM FOR DAILY
AND MOST RECENT MONTH-END PERFORMANCE UPDATES.
AVERAGE ANNUAL TOTAL RETURN AS OF 08/31/05 (%)
CLASS Z LIPPER MONEY MARKET
INCEPTION 11/03/74 FUNDS CATEGORY AVERAGE
- ---------------------------------------------------------------------------
1-year 1.77 1.68
- ---------------------------------------------------------------------------
5-year 1.88 1.77
- ---------------------------------------------------------------------------
10-year 3.48 3.39
AVERAGE ANNUAL TOTAL RETURN AS OF 06/30/05 (%)
LIPPER MONEY MARKET
CLASS Z FUNDS CATEGORY AVERAGE
- ---------------------------------------------------------------------------
1-year 1.39 1.35
- ---------------------------------------------------------------------------
5-year 2.00 1.88
- ---------------------------------------------------------------------------
10-year 3.53 3.43
ALL RESULTS SHOWN ASSUME REINVESTMENT OF DISTRIBUTIONS. CLASS Z SHARES ARE SOLD
AT NET ASSET VALUE WITH NO RULE 12B-1 FEES. CLASS Z SHARES HAVE LIMITED
ELIGIBILITY AND THE INVESTMENT MINIMUM REQUIREMENT MAY VARY. PLEASE SEE THE
FUND'S PROSPECTUS FOR DETAILS.
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 governmental agency. Although the fund seeks to preserve the value
of your investment at $1 per share, it is possible to lose money by investing in
the fund.
46
UNDERSTANDING YOUR EXPENSES ____________________________________________________
COLUMBIA DAILY INCOME COMPANY
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
MANAGEMENT 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
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
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
03/01/05 - 08/31/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
- ----------------------------------------------------------------------------------------------------------------------
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
- ----------------------------------------------------------------------------------------------------------------------
Class Z 1,000.00 1,000.00 1,011.70 1,021.32 3.90 3.92 0.77
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 different funds. If these transactional costs
were included, your costs would have been higher.
COMPARE WITH OTHER FUNDS
Since all mutual funds 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
PORTFOLIO MANAGER'S REPORT _____________________________________________________
COLUMBIA DAILY INCOME COMPANY
(Sidebar)
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 WILL FLUCTUATE. PLEASE VISIT WWW.COLUMBIAFUNDS.COM FOR DAILY
AND MOST RECENT MONTH-END PERFORMANCE UPDATES.
SUMMARY
o FOR THE 12-MONTH PERIOD THAT ENDED AUGUST 31, 2005, THE FUND'S CLASS Z
SHARES RETURNED 1.77%.
o SHORT-TERM RATES WERE NEAR ALL-TIME LOWS WHEN THE PERIOD BEGAN BUT WERE
PUSHED HIGHER BY THE FEDERAL RESERVE BOARD.
o WE CONTINUED TO EMPHASIZE FLOATING-RATE SECURITIES AND MAINTAINED A
RELATIVELY SHORT AVERAGE MATURITY, WHICH WE BELIEVE HELPED THE FUND
OUTPERFORM ITS PEER GROUP.
[UP ARROW] [UP ARROW]
LIPPER MONEY
MARKET FUNDS
CLASS Z SHARES CATEGORY
1.77% 1.68%
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
$487.8 million
NET ASSET VALUE PER SHARE
AS OF 08/31/05 ($)
Class Z 1.00
- -----------------------------------------
DISTRIBUTIONS DECLARED PER SHARE
09/01/04 - 08/31/05 ($)
Class Z 0.02
- -----------------------------------------
For the 12-month period ended August 31, 2005, Columbia Daily Income Company
class Z shares returned 1.77%. This return was slightly higher than the Lipper
Money Market Funds Category, which averaged 1.68% for the period. 1 The fund
benefited from its commitment to floating-rate notes in an environment of rising
short-term interest rates.
The Federal Reserve Board (the Fed) raised a key short-term interest rate, the
federal funds rate, on eight occasions during the past 12 months. The fed funds
rate moved from 1.5% to 3.5% during the period. 2 In this environment, money
market fund managers faced a choice between locking in maximum current yields by
buying longer-dated money market securities and maintaining flexibility by
buying shorter-dated money market securities that offered the opportunity for
reinvesting at higher levels as rates moved up. We chose the latter by
emphasizing floating-rate notes, whose coupons are reset with each upward move
in short-term rates. Floating-rate notes accounted for approximately 55% of
total assets throughout the period. We believe this strategy helped the fund
outperform its peer group.
Most of the fund's floating-rate investments are tied to either the one-month or
three-month LIBOR (London Interbank Offering Rate). We also diversified into
securities tied to the prime rate.
The fund's weighted average maturity was 36 days at the end of the period,
consistent with our preference to keep the portfolio's maturity relatively
short. Most of the portfolio's non-floating-rate positions have consisted of
fixed-rate securities with maturities between one and three months, which we
then rolled over as rates moved higher. However, there were occasions when
longer-term fixed rates rose above the Fed's forward-looking targets, and the
fund took advantage of those opportunities to lock in attractive yields. In
general, by spreading out the fund's maturity dates within any given month or
even within a given week, the fund remained poised to capture whatever
incremental yields the short-term marketplace had to offer.
The Fed has indicated that it will continue its policy of slow and steady hikes
to short-term rates. However, it could also reevaluate this policy at any time
depending on the health of the US economy. We will make every effort to monitor
both the economy's direction and the likely Fed response as we position the
portfolio for the year ahead.
1 Lipper Inc., a widely respected data provider in the industry, calculates
an average total return (assuming reinvestment of distributions) for
mutual funds with investment objectives similar to those of the fund.
Lipper makes no adjustment for the effect of sales loads.
2 The federal funds rate was raised to 3.75% on September 30, 2005.
48
________________________________________________________________________________
COLUMBIA DAILY INCOME COMPANY
PORTFOLIO HIGHLIGHTS AS OF 08/31/05
Seven day current yield 2.89%
- -----------------------------------------
Seven day effective yield 2.94%
- -----------------------------------------
Average days to maturity 36
ABOUT YOUR FUND
The Board of Trustees approved a proposal to reorganize the Columbia Daily
Income Company into Nations Cash Reserves under the new name Columbia Cash
Reserves, subject to shareholder approval. Shareholders are scheduled to vote on
this reorganization in the fourth quarter of 2005. The reorganization is
proposed to take place within a reasonable time thereafter.
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
governmental agency. Although the fund seeks to preserve the value of your
investment at $1 per share, it is possible to lose money by investing in the
fund.
49
FINANCIAL STATEMENTS ___________________________________________________________
AUGUST 31, 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).
50
INVESTMENT PORTFOLIO ___________________________________________________________
AUGUST 31, 2005 COLUMBIA INTERNATIONAL STOCK FUND
SHARES VALUE ($)
- --------------------------------------------------------------------------
COMMON STOCKS - 97.1%
CONSUMER DISCRETIONARY - 10.8%
AUTO COMPONENTS - 1.5%
Compagnie Generale des Etablissements
Michelin, Class B 80,000 4,874,553
Continental AG 72,600 5,762,711
Denso Corp. 210,600 5,359,200
-----------
Auto Components Total 15,996,464
AUTOMOBILES - 2.4%
Nissan Motor Co., Ltd. 401,800 4,232,171
Renault SA 56,082 4,974,732
Toyota Motor Corp. 384,600 15,749,409
-----------
Automobiles Total 24,956,312
HOTELS, RESTAURANTS & LEISURE - 1.0%
Accor SA 96,600 5,095,142
Carnival Corp. 72,500 3,577,150
Compass Group PLC 485,100 2,181,290
-----------
Hotels, Restaurants & Leisure Total 10,853,582
HOUSEHOLD DURABLES - 2.3%
Daiwa House Industry Co., Ltd. 315,000 3,824,239
Koninklijke (Royal) Philips
Electronics NV 189,221 4,979,537
Matsushita Electric Industrial Co., Ltd. 420,000 7,352,620
Pioneer Corp. 53,600 832,357
Sharp Corp. 347,000 5,253,434
Sony Corp. 57,300 1,920,267
-----------
Household Durables Total 24,162,454
LEISURE EQUIPMENT & PRODUCTS - 0.6%
Fuji Photo Film Co., Ltd. 79,400 2,573,702
Sega Sammy Holdings, Inc. 48,000 3,537,190
-----------
Leisure Equipment & Products Total 6,110,892
MEDIA - 1.7%
British Sky Broadcasting Group PLC 548,200 5,651,176
JC Decaux SA (a) 65,500 1,533,524
Pearson PLC 517,500 6,262,704
Vivendi Universal SA 149,700 4,718,764
-----------
Media Total 18,166,168
SPECIALTY RETAIL - 0.5%
Kingfisher PLC 345,400 1,572,497
Yamada Denki Co., Ltd. 50,400 3,250,804
-----------
Specialty Retail Total 4,823,301
TEXTILES, APPAREL & LUXURY GOODS - 0.8%
Burberry Group PLC 544,846 4,177,762
Swatch Group AG, Registered Shares 138,900 3,956,634
-----------
Textiles, Apparel & Luxury Goods Total 8,134,396
-----------
CONSUMER DISCRETIONARY TOTAL 113,203,569
SHARES VALUE ($)
- --------------------------------------------------------------------------
CONSUMER STAPLES - 8.5%
BEVERAGES - 0.9%
Diageo PLC 527,786 7,571,788
SABMiller PLC 141,383 2,500,549
-----------
Beverages Total 10,072,337
FOOD & STAPLES RETAILING - 0.9%
FamilyMart Co., Ltd. 54,200 1,682,087
Lawson, Inc. 43,200 1,618,229
Tesco PLC 1,106,920 6,531,779
-----------
Food & Staples Retailing Total 9,832,095
FOOD PRODUCTS - 3.6%
Nestle SA, Registered Shares 87,120 24,481,424
Royal Numico NV (a) 132,825 5,505,783
Unilever PLC 751,631 7,594,176
-----------
Food Products Total 37,581,383
HOUSEHOLD PRODUCTS - 1.2%
Kao Corp. 300,000 7,157,209
Reckitt Benckiser PLC 169,187 5,258,910
-----------
Household Products Total 12,416,119
TOBACCO - 1.9%
British American Tobacco PLC 390,886 7,889,802
Imperial Tobacco Group PLC 205,694 5,731,555
Japan Tobacco, Inc. 444 6,432,945
-----------
Tobacco Total 20,054,302
-----------
CONSUMER STAPLES TOTAL 89,956,236
ENERGY - 11.5%
ENERGY EQUIPMENT & SERVICES - 1.0%
Saipem S.p.A 347,400 5,851,937
Stolt Offshore SA (a) 351,000 4,462,195
-----------
Energy Equipment & Services Total 10,314,132
-----------
OIL, GAS & CONSUMABLE FUELS - 10.5%
BG Group PLC 1,238,895 11,197,016
BP PLC 1,138,040 12,971,362
BP PLC, ADR 227,930 15,585,853
CNOOC Ltd. 8,307,000 5,975,730
EnCana Corp. 150,300 7,365,067
ENI S.p.A 409,431 12,130,044
OMV AG 132,950 7,240,338
Royal Dutch Shell PLC, Class A 160,500 5,237,656
Royal Dutch Shell PLC, Class B 260,523 8,835,241
Statoil ASA 159,400 3,915,308
Total SA 76,630 20,173,078
-----------
Oil, Gas & Consumable Fuels Total 110,626,693
-----------
ENERGY TOTAL 120,940,825
See Accompanying Notes to Financial Statements. | 51
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA INTERNATIONAL STOCK FUND
SHARES VALUE ($)
- --------------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
FINANCIALS - 24.7%
CAPITAL MARKETS - 2.6%
Credit Suisse Group, Registered Shares 169,100 7,355,924
Deutsche Bank AG, Registered Shares 67,759 5,893,464
Nomura Holdings, Inc. 531,500 7,307,005
UBS AG, Registered Shares 77,500 6,359,065
-----------
Capital Markets Total 26,915,458
COMMERCIAL BANKS - 13.8%
Anglo Irish Bank Corp., PLC 229,900 3,104,958
Australia & New Zealand Banking
Group Ltd. 448,000 7,513,313
Banco Bilbao Vizcaya Argentaria SA 467,600 7,781,705
Banco de Sabadell SA 100,353 2,622,608
Banco Popolare di Verona e Novara 229,298 4,119,073
Banco Popular Espanol SA 606,400 7,418,307
Barclays PLC 995,110 9,941,751
BNP Paribas SA 113,211 8,277,912
Commerzbank AG 99,000 2,583,139
DNB NOR ASA 399,000 4,222,758
HBOS PLC 467,300 7,330,455
HSBC Holdings PLC 1,027,300 16,575,844
KBC Groep NV 33,200 2,757,459
Mitsubishi Tokyo Financial Group, Inc. 761 7,834,699
Mitsui Trust Holdings, Inc. 296,000 3,334,215
Mizuho Financial Group, Inc. 1,572 8,788,857
National Bank of Greece SA 126,571 4,706,818
Resona Holdings, Inc. (a) 1,084 2,331,247
Royal Bank of Scotland Group PLC 471,216 13,777,832
Skandinaviska Enskilda Banken AB,
Class A 197,200 3,591,818
Societe Generale 34,100 3,700,711
Sumitomo Mitsui Financial Group, Inc. 696 5,714,533
UFJ Holdings, Inc. (a) 398 2,501,071
United Overseas Bank Ltd. 550,000 4,653,359
-----------
Commercial Banks Total 145,184,442
CONSUMER FINANCE - 1.1%
Aiful Corp. 49,050 3,779,011
ORIX Corp. 24,700 4,078,303
Takefuji Corp. 46,300 3,248,626
-----------
Consumer Finance Total 11,105,940
DIVERSIFIED FINANCIAL SERVICES - 1.1%
Fortis 79,200 2,263,923
ING Groep NV 238,240 6,956,443
Suncorp-Metway Ltd. 193,000 2,874,845
-----------
Diversified Financial Services Total 12,095,211
INSURANCE - 4.3%
Aegon NV 173,832 2,449,825
Allianz AG, Registered Shares 59,564 7,729,527
Aviva PLC 426,400 4,728,024
AXA 230,680 6,165,514
Irish Life & Permanent PLC 183,200 3,394,166
SHARES VALUE ($)
- --------------------------------------------------------------------------
Mitsui Sumitomo Insurance Co., Ltd. 557,000 5,699,272
Muenchener Rueckversicherungs-
Gesellschaft AG, Registered Shares 27,200 3,054,016
QBE Insurance Group Ltd. 359,200 4,651,114
Sampo Oyj, Class A 298,000 4,706,846
Storebrand ASA 307,000 3,062,840
-----------
Insurance Total 45,641,144
REAL ESTATE - 1.8%
CapitaLand Ltd. 3,018,000 5,255,398
Sun Hung Kai Properties Ltd. 499,000 5,057,436
Swire Pacific Ltd., Class A 957,000 9,119,063
-----------
Rea1 Estates Total 19,431,897
-----------
FINANCIALS TOTAL 260,374,092
HEALTH CARE - 9.6%
HEALTH CARE EQUIPMENT & SUPPLIES - 1.1%
GN Store Nord A/S 456,500 5,973,637
Smith & Nephew PLC 328,605 3,166,365
Terumo Corp. 87,000 2,503,921
-----------
Health Care Equipment & Supplies Total 11,643,923
PHARMACEUTICALS - 8.5%
Astellas Pharma, Inc. 77,400 2,762,318
AstraZeneca PLC 327,998 15,034,210
Eisai Co., Ltd. 94,800 3,610,410
GlaxoSmithKline PLC 799,537 19,419,170
Novartis AG, Registered Shares 193,444 9,403,692
Roche Holding AG, Genusschein 53,652 7,433,347
Sanofi-Aventis 137,608 11,799,786
Schering AG 33,800 2,140,477
Shire Pharmaceuticals Group PLC 170,900 2,148,042
Takeda Pharmaceutical Co., Ltd. 148,700 8,059,321
Teva Pharmaceutical Industries
Ltd., ADR 219,100 7,107,604
-----------
Pharmaceuticals Total 88,918,377
-----------
HEALTH CARE TOTAL 100,562,300
INDUSTRIALS - 11.4%
AEROSPACE & DEFENSE - 0.3%
Singapore Technologies
Engineering Ltd. 2,344,000 3,625,152
-----------
Aerospace & Defense Total 3,625,152
AIR FREIGHT & LOGISTICS - 0.3%
Deutsche Post AG, Registered Shares 132,600 3,351,620
-----------
Air Freight & Logistics Total 3,351,620
BUILDING PRODUCTS - 0.4%
Nippon Sheet Glass Co., Ltd. 514,000 2,236,487
Wienerberger AG 58,044 2,393,279
-----------
Building Products Total 4,629,766
52 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA INTERNATIONAL STOCK FUND
SHARES VALUE ($)
- --------------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
INDUSTRIALS - (CONTINUED)
COMMERCIAL SERVICES & SUPPLIES - 0.4%
Randstad Holding NV 50,518 1,924,831
Securitas AB, Class B 159,400 2,589,167
-----------
Commercial Services & Supplies Total 4,513,998
CONSTRUCTION & ENGINEERING - 1.8%
Shimizu Corp. 1,137,000 6,121,533
Vinci SA 139,720 12,405,210
-----------
Construction & Engineering Total 18,526,743
ELECTRICAL EQUIPMENT - 1.4%
ABB Ltd. (a) 605,200 4,391,049
Mitsubishi Electric Corp. 1,227,000 6,611,177
Shanghai Electric Group Co.,
Ltd., Class H (a) 11,402,000 3,482,737
-----------
Electrical Equipment Total 14,484,963
INDUSTRIAL CONGLOMERATES - 2.4%
Hutchison Whampoa Ltd. 687,000 6,790,995
Keppel Corp., Ltd. 367,000 2,538,284
SembCorp Industries Ltd. 1,895,980 3,176,934
Siemens AG, Registered Shares 71,957 5,462,300
Smiths Group PLC 437,829 7,188,632
-----------
Industrial Conglomerates Total 25,157,145
MACHINERY - 1.3%
Atlas Copco AB, Class B 219,800 3,388,968
Komatsu Ltd. 689,000 7,712,916
THK Co., Ltd. 91,900 2,092,941
-----------
Machinery Total 13,194,825
MARINE - 0.3%
Kawasaki Kisen Kaisha Ltd. 452,000 2,986,127
-----------
Marine Total 2,986,127
ROAD & RAIL - 1.5%
Canadian National Railway Co. 40,402 2,664,104
Canadian Pacific Railway Ltd. 148,200 5,591,652
ComfortDelGro Corp., Ltd. 4,090,000 3,518,338
East Japan Railway Co. 831 4,482,916
-----------
Road & Rail Total 16,257,010
TRADING COMPANIES & DISTRIBUTORS - 0.9%
Mitsubishi Corp. 592,900 9,819,822
-----------
Trading Companies & Distributors Total 9,819,822
TRANSPORTATION INFRASTRUCTURE - 0.4%
BAA PLC 342,700 3,791,135
-----------
Transportation Infrastructure Total 3,791,135
-----------
INDUSTRIALS TOTAL 120,338,306
SHARES VALUE ($)
- --------------------------------------------------------------------------
INFORMATION TECHNOLOGY - 6.3%
COMMUNICATIONS EQUIPMENT - 1.3%
Nokia Oyj 385,000 6,056,745
Tandberg ASA 119,000 1,459,337
Telefonaktiebolaget LM Ericsson, ADR 183,800 6,414,620
-----------
Communications Equipment Total 13,930,702
COMPUTERS & PERIPHERALS - 0.5%
Toshiba Corp. 1,310,000 5,199,448
-----------
Computers & Peripherals Total 5,199,448
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.9%
Hoya Corp. 28,500 3,729,658
Omron Corp. 96,700 2,145,754
TDK Corp. 47,700 3,561,687
-----------
Electronic Equipment & Instruments Total 9,437,099
OFFICE ELECTRONICS - 0.4%
Canon, Inc. 87,400 4,425,770
-----------
Office Electronics Total 4,425,770
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 1.6%
Advantest Corp. 33,200 2,612,895
ARM Holdings PLC 968,800 2,017,174
Marvell Technology Group Ltd. (a) 80,600 3,803,514
Samsung Electronics Co., Ltd. 11,431 6,028,850
Taiwan Semiconductor Manufacturing
Co., Ltd., ADR 322,979 2,658,117
-----------
Semiconductors & Semiconductor Equipment Total 17,120,550
SOFTWARE - 1.6%
Cognos, Inc. (a) 134,900 4,871,239
Sage Group PLC 888,300 3,671,988
SAP AG 44,399 7,546,891
-----------
Software Total 16,090,118
-----------
INFORMATION TECHNOLOGY TOTAL 66,203,687
MATERIALS - 4.1%
CHEMICALS - 4.1%
BASF AG 87,026 6,111,506
Bayer AG 139,900 4,950,925
Novozymes A/S, Class B 60,450 3,151,097
Shin-Etsu Chemical Co., Ltd. 122,500 4,976,004
Solvay SA 36,700 3,988,949
Sumitomo Chemical Co., Ltd. 1,555,000 8,695,727
Syngenta AG 63,238 6,746,757
Teijin Ltd. 872,000 4,649,315
-----------
Chemicals Total 43,270,280
-----------
MATERIALS TOTAL 43,270,280
See Accompanying Notes to Financial Statements. | 53
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA INTERNATIONAL STOCK FUND
SHARES VALUE ($)
- --------------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
TELECOMMUNICATION SERVICES - 5.6%
DIVERSIFIED TELECOMMUNICATION SERVICES - 2.1%
Deutsche Telekom AG, Registered Shares 481,313 9,158,374
France Telecom SA 149,700 4,521,709
Koninklijke (Royal) KPN NV 130,281 1,232,928
Nippon Telegraph & Telephone Corp. 771 3,355,912
Telekom Austria AG 206,500 4,340,970
-------------
Diversified Telecommunication Services Total 22,609,893
WIRELESS TELECOMMUNICATION SERVICES - 3.5%
China Mobile (Hong Kong) Ltd. 715,000 3,108,898
NTT DoCoMo, Inc. 2,013 3,244,469
O2 PLC 1,061,600 2,933,018
Vodafone Group PLC 9,843,260 27,060,797
-------------
Wireless Telecommunication Services Total 36,347,182
-------------
TELECOMMUNICATION SERVICES TOTAL 58,957,075
UTILITIES - 4.6%
ELECTRIC UTILITIES - 2.1%
E.ON AG 89,756 8,584,368
Fortum Oyj 204,600 3,981,636
Scottish & Southern Energy PLC 153,000 2,730,296
Tokyo Electric Power Co., Inc. 289,900 7,134,167
-------------
Electric Utilities Total 22,430,467
GAS UTILITIES - 0.4%
Tokyo Gas Co., Ltd. 1,211,000 4,531,933
-------------
Gas Utilities Total 4,531,933
MULTI-UTILITIES - 2.1%
National Grid PLC 424,152 4,026,786
RWE AG 93,700 6,285,476
Veolia Environnement 279,600 11,430,414
-------------
Multi-Utilities Total 21,742,676
-------------
UTILITIES TOTAL 48,705,076
Total Common Stocks
(cost of $866,072,204) 1,022,511,446
SHARES VALUE ($)
- --------------------------------------------------------------------------
INVESTMENT COMPANIES - 1.1%
iShares MSCI Malaysia Index Fund 382,800 2,779,128
iShares MSCI South Korea Index Fund 102,900 3,611,790
iShares MSCI Taiwan Index Fund 465,000 5,463,750
-------------
Total Investment Companies
(cost of $12,054,207) 11,854,668
PREFERRED STOCK - 0.4%
CONSUMER DISCRETIONARY - 0.4%
AUTOMOBILES - 0.4%
Porsche AG 5,990 4,681,549
-------------
Automobiles Total 4,681,549
-------------
CONSUMER DISCRETIONARY TOTAL 4,681,549
Total Preferred Stock
(cost of $3,821,577) 4,681,549
SHORT-TERM OBLIGATION - 1.4% PAR ($)
Repurchase agreement with State Street
Bank & Trust Co., dated 08/31/05,
due 09/01/05 at 3.430%, collateralized
by a U.S. Treasury Bond maturing
08/15/13, market value of $14,493,106
(repurchase proceeds $14,206,353) 14,205,000 14,205,000
-------------
Total Short-Term Obligation
(cost of $14,205,000) 14,205,000
TOTAL INVESTMENTS - 100.0%
(COST OF $896,152,988) (b) 1,053,252,663
OTHER ASSETS & LIABILITIES, NET - 0.0% 196,360
NET ASSETS - 100.0% 1,053,449,023
54 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA INTERNATIONAL STOCK FUND
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing security.
(b) Cost for federal income tax purposes is $896,365,841.
The Fund was invested in the following countries at August 31, 2005:
SUMMARY OF SECURITIES % OF TOTAL
BY COUNTRY (UNAUDITED) VALUE INVESTMENTS
----------------------------------------------------------
United Kingdom $ 262,292,635 24.9%
Japan 242,655,327 23.0
France 99,671,051 9.5
Germany 83,296,343 7.9
Switzerland 70,127,892 6.7
Hong Kong 30,052,123 2.9
Netherlands 23,049,348 2.2
Singapore 22,767,465 2.2
Italy 22,101,054 2.1
Canada 20,492,062 1.9
United States* 18,008,514 1.7
Spain 17,822,619 1.7
Sweden 15,984,572 1.5
Australia 15,039,272 1.4
Finland 14,745,227 1.4
Austria 13,974,587 1.3
Norway 12,660,244 1.2
South Korea 9,640,640 0.9
Denmark 9,124,734 0.9
Belgium 9,010,331 0.9
Taiwan 8,121,867 0.8
Israel 7,107,604 0.7
Ireland 6,499,124 0.6
Greece 4,706,818 0.4
Luxembourg 4,462,195 0.4
Panama 3,577,150 0.3
China 3,482,737 0.3
Malaysia 2,779,128 0.3
-------------- -----
$1,053,252,663 100.0%
============== =====
* Includes Short-Term Obligation.
Certain securities are listed by country of underlying exposure but may trade
predominately on other exchanges.
ACRONYM NAME
------- ----
ADR American Depositary Receipt
See Accompanying Notes to Financial Statements. | 55
INVESTMENT PORTFOLIO ___________________________________________________________
AUGUST 31, 2005 COLUMBIA MID CAP GROWTH FUND
SHARES VALUE ($)
- --------------------------------------------------------------------------
COMMON STOCKS - 99.2%
CONSUMER DISCRETIONARY - 19.7%
AUTO COMPONENTS - 0.5%
Autoliv, Inc. 94,480 4,204,360
-----------
Auto Components Total 4,204,360
DIVERSIFIED CONSUMER SERVICES - 0.8%
Career Education Corp. (a) 94,260 3,694,992
Education Management Corp. (a) 97,736 3,310,318
-----------
Diversified Consumer Services Total 7,005,310
HOTELS, RESTAURANTS & LEISURE - 5.4%
Applebee's International, Inc. 242,830 5,368,971
Brinker International, Inc. (a) 88,390 3,283,689
Cheesecake Factory, Inc. (a) 213,020 6,746,343
Harrah's Entertainment, Inc. 57,028 3,966,868
Hilton Hotels Corp. 275,990 6,394,688
Marriott International, Inc., Class A 72,970 4,612,434
Starwood Hotels & Resorts
Worldwide, Inc. 69,000 4,022,700
Wendy's International, Inc. 68,050 3,207,877
Yum! Brands, Inc. 163,400 7,741,892
-----------
Hotels, Restaurants & Leisure Total 45,345,462
HOUSEHOLD DURABLES - 2.6%
Centex Corp. 28,770 1,949,168
D.R. Horton, Inc. 96,086 3,547,495
Fortune Brands, Inc. 55,810 4,854,354
Tempur-Pedic International, Inc. (a) 695,120 11,170,578
-----------
Household Durables Total 21,521,595
INTERNET & CATALOG RETAIL - 0.4%
Netflix, Inc. (a) 147,660 3,183,550
-----------
Internet & Catalog Retail Total 3,183,550
LEISURE EQUIPMENT & PRODUCTS - 0.9%
Marvel Enterprises, Inc. (a) 235,730 4,537,802
SCP Pool Corp. 95,170 3,483,222
-----------
Leisure Equipment & Products Total 8,021,024
MEDIA - 3.2%
Getty Images, Inc. (a) 51,090 4,372,793
Grupo Televisa SA, ADR 79,170 4,971,876
Lamar Advertising Co., Class A (a) 68,010 2,735,362
XM Satellite Radio Holdings, Inc.,
Class A (a) 428,725 15,112,557
-----------
Media Total 27,192,588
SPECIALTY RETAIL - 4.8%
Abercrombie & Fitch Co., Class A 151,940 8,449,384
Chico's FAS, Inc. (a) 405,580 14,077,682
Children's Place Retail Stores, Inc. (a) 69,820 2,856,336
PETsMART, Inc. 167,290 4,311,063
Urban Outfitters, Inc. (a) 186,600 10,386,156
-----------
Specialty Retail Total 40,080,621
SHARES VALUE ($)
- --------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS - 1.1%
Coach, Inc. (a) 279,350 9,271,626
-----------
Textiles, Apparel & Luxury Goods Total 9,271,626
-----------
CONSUMER DISCRETIONARY TOTAL 165,826,136
CONSUMER STAPLES - 4.0%
FOOD & STAPLES RETAILING - 0.9%
Rite Aid Corp. (a) 681,850 2,781,948
Whole Foods Market, Inc. 34,250 4,427,155
-----------
Food & Staples Retailing Total 7,209,103
FOOD PRODUCTS - 2.1%
Bunge Ltd. 33,860 1,988,259
Corn Products International, Inc. 412,090 9,280,267
H.J. Heinz Co. 92,350 3,317,212
Tyson Foods, Inc., Class A 185,500 3,298,190
-----------
Food Products Total 17,883,928
PERSONAL PRODUCTS - 0.6%
Alberto-Culver Co. 65,600 2,817,520
Estee Lauder Companies, Inc., Class A 63,080 2,547,802
-----------
Personal Products Total 5,365,322
TOBACCO - 0.4%
UST, Inc. 72,570 3,088,579
-----------
Tobacco Total 3,088,579
-----------
CONSUMER STAPLES TOTAL 33,546,932
ENERGY - 10.9%
ENERGY EQUIPMENT & SERVICES - 3.7%
Diamond Offshore Drilling, Inc. 66,040 3,900,322
FMC Technologies, Inc. (a) 176,270 7,087,817
Grant Prideco, Inc. (a) 66,100 2,436,446
Nabors Industries Ltd. (a) 67,670 4,533,890
National-Oilwell Varco, Inc. (a) 109,000 6,998,890
Smith International, Inc. 193,360 6,717,326
-----------
Energy Equipment & Services Total 31,674,691
OIL, GAS & CONSUMABLE FUELS - 7.2%
Chesapeake Energy Corp. 178,140 5,631,005
EOG Resources, Inc. 144,570 9,227,903
Massey Energy Co. 157,300 7,990,840
Peabody Energy Corp. 82,520 5,914,209
Southwestern Energy Co. (a) 131,960 7,640,484
Teekay Shipping Corp. 175,500 8,099,325
Ultra Petroleum Corp. (a) 150,920 6,676,701
XTO Energy, Inc. 231,950 9,231,610
-----------
Oil, Gas & Consumable Fuels Total 60,412,077
-----------
ENERGY TOTAL 92,086,768
56 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA MID CAP GROWTH FUND
SHARES VALUE ($)
- --------------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
FINANCIALS - 5.6%
CAPITAL MARKETS - 3.2%
Affiliated Managers Group, Inc. (a) 90,830 6,595,166
E*TRADE Financial Corp. (a) 281,180 4,498,880
Lazard Ltd., Class A 272,300 6,921,866
Legg Mason, Inc. 27,060 2,828,582
T. Rowe Price Group, Inc. 97,200 6,123,600
-----------
Capital Markets Total 26,968,094
COMMERCIAL BANKS - 1.4%
East West Bancorp, Inc. 174,520 5,923,209
Zions Bancorporation 85,630 5,982,112
-----------
Commercial Banks Total 11,905,321
DIVERSIFIED FINANCIAL SERVICES - 0.5%
Chicago Mercantile Exchange
Holdings, Inc. 15,600 4,330,560
-----------
Diversified Financial Services Total 4,330,560
INSURANCE - 0.5%
Ambac Financial Group, Inc. 58,610 4,019,474
-----------
Insurance Total 4,019,474
-----------
FINANCIALS TOTAL 47,223,449
HEALTH CARE - 17.6%
BIOTECHNOLOGY - 1.5%
Amylin Pharmaceuticals Inc. (a) 275,520 9,023,280
Neurocrine Biosciences, Inc. (a) 86,855 3,977,959
-----------
Biotechnology Total 13,001,239
HEALTH CARE EQUIPMENT & SUPPLIES - 5.4%
Beckman Coulter, Inc. 58,270 3,250,883
Biomet, Inc. 108,069 3,986,665
DENTSPLY International, Inc. 59,480 3,150,656
Gen-Probe, Inc. (a) 138,510 6,304,975
Kinetic Concepts, Inc. (a) 71,320 3,908,336
Nektar Therapeutics (a) 206,470 3,526,508
ResMed, Inc. (a) 68,602 4,962,669
Thermo Electron Corp. (a) 199,510 5,566,329
Varian Medical Systems, Inc. (a) 163,830 6,523,710
Waters Corp. (a) 87,910 3,997,268
-----------
Health Care Equipment & Supplies Total 45,177,999
HEALTH CARE PROVIDERS & SERVICES - 6.8%
Cerner Corp. (a) 57,120 4,498,771
Community Health Systems, Inc. (a) 116,570 4,293,273
Coventry Health Care, Inc. (a) 113,460 9,076,800
DaVita, Inc. (a) 209,125 9,600,929
Health Management Associates,
Inc., Class A 157,760 3,836,723
Henry Schein, Inc. (a) 82,760 3,450,264
Laboratory Corp. of America
Holdings (a) 123,160 6,074,251
SHARES VALUE ($)
- --------------------------------------------------------------------------
Medco Health Solutions, Inc. (a) 63,780 3,142,441
Quest Diagnostics, Inc. 68,730 3,435,125
United Surgical Partners
International, Inc. (a) 80,535 3,085,296
WellPoint, Inc. (a) 88,490 6,570,383
-----------
Health Care Providers & Services Total 57,064,256
PHARMACEUTICALS - 3.9%
Allergan, Inc. 82,960 7,636,468
Endo Pharmaceuticals Holdings, Inc. (a) 142,467 4,274,010
Forest Laboratories, Inc. (a) 113,350 5,032,740
Medicis Pharmaceutical Corp., Class A 248,260 8,443,323
Shire Pharmaceuticals Group
PLC, ADR 90,300 3,442,236
Teva Pharmaceutical Industries
Ltd., ADR 130,426 4,231,019
-----------
Pharmaceuticals Total 33,059,796
-----------
HEALTH CARE TOTAL 148,303,290
INDUSTRIALS - 12.9%
AEROSPACE & DEFENSE - 2.2%
Armor Holdings, Inc. (a) 91,540 3,882,211
L-3 Communications Holdings, Inc. 96,170 7,874,400
Rockwell Collins, Inc. 141,220 6,796,919
-----------
Aerospace & Defense Total 18,553,530
AIR FREIGHT & LOGISTICS - 1.3%
C.H. Robinson Worldwide, Inc. 104,870 6,475,723
UTI Worldwide, Inc. 58,940 4,447,612
-----------
Air Freight & Logistics Total 10,923,335
AIRLINES - 0.4%
Southwest Airlines Co. 269,570 3,590,672
-----------
Airlines Total 3,590,672
COMMERCIAL SERVICES & SUPPLIES - 4.4%
ChoicePoint, Inc. (a) 182,570 7,837,730
Cintas Corp. 75,090 3,097,463
Corporate Executive Board Co. 181,330 14,646,024
Robert Half International, Inc. 330,900 11,144,712
-----------
Commercial Services & Supplies Total 36,725,929
CONSTRUCTION & ENGINEERING - 1.0%
Jacobs Engineering Group, Inc. (a) 140,170 8,746,608
-----------
Construction & Engineering Total 8,746,608
ELECTRICAL EQUIPMENT - 0.8%
Rockwell Automation, Inc. 130,780 6,805,791
-----------
Electrical Equipment Total 6,805,791
MACHINERY - 2.2%
Joy Global, Inc. 188,175 8,994,765
Terex Corp. (a) 202,525 9,879,169
-----------
Machinery Total 18,873,934
See Accompanying Notes to Financial Statements. | 57
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA MID CAP GROWTH FUND
SHARES VALUE ($)
- --------------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
INDUSTRIALS - (CONTINUED)
ROAD & RAIL - 0.6%
Landstar System, Inc. 125,830 4,570,146
-----------
Road & Rail Total 4,570,146
-----------
INDUSTRIALS TOTAL 108,789,945
INFORMATION TECHNOLOGY - 19.4%
COMMUNICATIONS EQUIPMENT - 1.7%
Comverse Technology, Inc. (a) 339,770 8,759,271
F5 Networks, Inc. (a) 87,500 3,612,875
Harris Corp. 58,730 2,267,565
-----------
Communications Equipment Total 14,639,711
COMPUTERS & PERIPHERALS - 1.1%
SanDisk Corp. (a) 235,910 9,160,385
-----------
Computers & Peripherals Total 9,160,385
INTERNET SOFTWARE & SERVICES - 0.6%
VeriSign, Inc. (a) 225,750 4,921,350
-----------
Internet Software & Services Total 4,921,350
IT SERVICES - 3.7%
Affiliated Computer Services, Inc.,
Class A (a) 79,930 4,152,363
Alliance Data Systems Corp. (a) 180,920 7,611,304
Cognizant Technology Solutions Corp.,
Class A (a) 176,060 8,016,012
Fiserv, Inc. (a) 94,770 4,252,330
Global Payments, Inc. 65,000 4,275,700
Paychex, Inc. 76,290 2,603,778
-----------
IT Services Total 30,911,487
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 7.3%
Advanced Micro Devices, Inc. (a) 119,060 2,472,876
Altera Corp. (a) 192,630 4,212,818
Broadcom Corp., Class A (a) 344,310 14,977,485
Cypress Semiconductor Corp. (a) 165,100 2,580,513
Intersil Corp., Class A 125,700 2,639,700
KLA-Tencor Corp. 72,690 3,689,745
Marvell Technology Group Ltd. (a) 349,380 16,487,242
MEMC Electronic Materials, Inc. (a) 355,070 5,986,480
Microchip Technology, Inc. 72,377 2,252,372
National Semiconductor Corp. 121,950 3,040,214
NVIDIA Corp. (a) 103,710 3,181,823
-----------
Semiconductors & Semiconductor Equipment Total 61,521,268
SOFTWARE - 5.0%
Amdocs Ltd. (a) 153,560 4,506,986
Autodesk, Inc. 88,539 3,824,885
Check Point Software
Technologies Ltd. (a) 205,170 4,628,635
Citrix Systems, Inc. (a) 259,330 6,172,054
SHARES VALUE ($)
- --------------------------------------------------------------------------
Hyperion Solutions Corp. (a) 107,770 4,673,985
McAfee, Inc. (a) 92,850 2,845,853
Mercury Interactive Corp. (a) 147,350 5,403,324
NAVTEQ (a) 158,650 7,383,571
Symantec Corp. (a) 128,445 2,694,776
-----------
Software Total 42,134,069
-----------
INFORMATION TECHNOLOGY TOTAL 163,288,270
MATERIALS - 4.1%
CHEMICALS - 2.2%
Ecolab, Inc. 101,500 3,349,500
Potash Corp. of Saskatchewan, Inc. 134,890 14,847,342
-----------
Chemicals Total 18,196,842
METALS & MINING - 1.9%
Freeport-McMoRan Copper
& Gold, Inc., Class B 109,780 4,629,423
Inco Ltd. 99,560 4,214,375
Phelps Dodge Corp. 66,480 7,148,594
-----------
Metals & Mining Total 15,992,392
-----------
MATERIALS TOTAL 34,189,234
TELECOMMUNICATION SERVICES - 4.0%
WIRELESS TELECOMMUNICATION SERVICES - 4.0%
American Tower Corp., Class A (a) 517,805 12,344,471
Crown Castle International Corp. (a) 320,390 7,932,857
Millicom International Cellular SA (a) 340,730 6,545,423
NII Holdings, Inc. (a) 48,460 3,693,621
VimpelCom, ADR (a) 68,530 2,825,492
-----------
Wireless Telecommunication Services Total 33,341,864
-----------
TELECOMMUNICATION SERVICES TOTAL 33,341,864
UTILITIES - 1.0%
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 1.0%
AES Corp. (a) 541,110 8,517,071
-----------
Independent Power Producers & Energy Traders Total 8,517,071
-----------
UTILITIES TOTAL 8,517,071
Total Common Stocks
(cost of $688,959,700) 835,112,959
58 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA MID CAP GROWTH FUND
SHARES VALUE ($)
- --------------------------------------------------------------------------
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 $3,000,000) 3,942
SHORT-TERM OBLIGATION - 0.2% PAR ($)
Repurchase agreement with State
Street Bank & Trust Co., dated 08/31/05,
due 09/01/05 at 3.430%, collateralized
by a U.S. Treasury Note maturing
02/28/06, market value of $1,433,688
(repurchase proceeds $1,402,134) 1,402,000 1,402,000
-----------
Total Short-Term Obligation
(cost of $1,402,000) 1,402,000
TOTAL INVESTMENTS - 99.4%
(COST OF $693,361,700) (d) 836,518,901
OTHER ASSETS & LIABILITIES, NET - 0.6% 5,245,099
NET ASSETS - 100.0% 841,764,000
- --------------------------------------------------------------------------
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 Trustees.
(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 August
31, 2005, the value of this security represents less than 0.1% of net
assets.
(d) Cost for federal income tax purposes is $695,456,425.
At August 31, 2005, the Fund held investments in the following sectors:
% OF
SECTOR (UNAUDITED) NET ASSETS
--------------------------------------------------------
Consumer Discretionary 19.7%
Information Technology 19.4
Health Care 17.6
Industrials 12.9
Energy 10.9
Financials 5.6
Materials 4.1
Consumer Staples 4.0
Telecommunication Services 4.0
Utilities 1.0
Short-Term Obligation 0.2
Other Assets & Liabilities, Net 0.6
-----
100.0%
=====
ACRONYM NAME
------- ----
ADR American Depositary Receipt
See Accompanying Notes to Financial Statements. | 59
INVESTMENT PORTFOLIO ___________________________________________________________
AUGUST 31, 2005 COLUMBIA SMALL CAP GROWTH FUND I
SHARES VALUE ($)
- --------------------------------------------------------------------------
COMMON STOCKS - 98.0%
CONSUMER DISCRETIONARY - 12.2%
DIVERSIFIED CONSUMER SERVICES - 0.9%
Education Management Corp. (a) 58,754 1,989,998
-----------
Diversified Consumer Services Total 1,989,998
HOTELS, RESTAURANTS & LEISURE - 5.5%
Applebee's International, Inc. 61,850 1,367,503
Cheesecake Factory, Inc. (a) 34,710 1,099,266
Cosi, Inc. (a) 95,956 874,159
P.F. Chang's China Bistro, Inc. (a) 42,220 2,160,820
Pinnacle Entertainment, Inc. (a) 38,900 775,666
RARE Hospitality International, Inc. (a) 85,870 2,296,164
Scientific Games Corp., Class A (a) 107,040 3,226,185
-----------
Hotels, Restaurants & Leisure Total 11,799,763
HOUSEHOLD DURABLES - 1.4%
Tempur-Pedic International, Inc. (a) 188,440 3,028,231
-----------
Household Durables Total 3,028,231
INTERNET & CATALOG RETAIL - 0.8%
Blue Nile, Inc. (a) 19,510 659,633
Netflix, Inc. (a) 36,690 791,037
Provide Commerce, Inc. (a) 15,450 394,284
-----------
Internet & Catalog Retail Total 1,844,954
LEISURE EQUIPMENT & PRODUCTS - 1.2%
Marvel Enterprises, Inc. (a) 62,110 1,195,618
SCP Pool Corp. 36,000 1,317,600
-----------
Leisure Equipment & Products Total 2,513,218
MEDIA - 1.3%
Getty Images, Inc. (a) 21,772 1,863,465
Radio One, Inc., Class D (a) 61,400 858,372
-----------
Media Total 2,721,837
SPECIALTY RETAIL - 1.1%
Aeropostale, Inc. (a) 29,400 750,876
Children's Place Retail Stores, Inc. (a) 22,530 921,702
PETCO Animal Supplies, Inc. (a) 28,432 628,916
-----------
Specialty Retail Total 2,301,494
-----------
CONSUMER DISCRETIONARY TOTAL 26,199,495
CONSUMER STAPLES - 2.1%
FOOD PRODUCTS - 0.9%
Corn Products International, Inc. 89,810 2,022,521
-----------
Food Products Total 2,022,521
HOUSEHOLD PRODUCTS - 0.6%
Central Garden & Pet Co. (a) 25,900 1,283,086
-----------
Household Products Total 1,283,086
SHARES VALUE ($)
- --------------------------------------------------------------------------
PERSONAL PRODUCTS - 0.6%
Elizabeth Arden, Inc. (a) 54,670 1,214,768
-----------
Personal Products Total 1,214,768
-----------
CONSUMER STAPLES TOTAL 4,520,375
ENERGY - 8.0%
ENERGY EQUIPMENT & SERVICES - 4.8%
Atwood Oceanics, Inc. (a) 31,300 2,354,699
CAL Dive International, Inc. (a) 23,864 1,490,545
Core Laboratories NV (a) 41,900 1,333,677
FMC Technologies, Inc. (a) 44,180 1,776,478
Grey Wolf, Inc. (a) 296,850 2,324,336
Veritas DGC, Inc. (a) 32,700 1,051,632
-----------
Energy Equipment & Services Total 10,331,367
OIL, GAS & CONSUMABLE FUELS - 3.2%
Arch Coal, Inc. 32,857 2,109,419
Carrizo Oil & Gas, Inc. (a) 58,200 1,376,430
Cheniere Energy, Inc. (a) 30,820 1,203,521
KFx, Inc. (a) 35,170 564,479
Southwestern Energy Co. (a) 26,580 1,538,982
-----------
Oil, Gas & Consumable Fuels Total 6,792,831
-----------
ENERGY TOTAL 17,124,198
FINANCIALS - 6.0%
CAPITAL MARKETS - 1.8%
Affiliated Managers Group, Inc. (a) 53,601 3,891,969
-----------
Capital Markets Total 3,891,969
COMMERCIAL BANKS - 1.5%
Signature Bank (a) 50,140 1,503,699
UCBH Holdings, Inc. 89,400 1,704,858
-----------
Commercial Banks Total 3,208,557
CONSUMER FINANCE - 0.6%
First Cash Financial Services, Inc. (a) 51,600 1,238,400
-----------
Consumer Finance Total 1,238,400
INSURANCE - 1.5%
Allmerica Financial Corp. (a) 24,270 988,031
ProAssurance Corp. (a) 52,277 2,302,802
-----------
Insurance Total 3,290,833
THRIFTS & MORTGAGE FINANCE - 0.6%
Sterling Financial Corp./WA 31,692 1,222,360
-----------
Thrifts & Mortgage Finance Total 1,222,360
-----------
FINANCIALS TOTAL 12,852,119
60 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA SMALL CAP GROWTH FUND I
SHARES VALUE ($)
- --------------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
HEALTH CARE - 22.3%
BIOTECHNOLOGY - 5.0%
Alexion Pharmaceuticals, Inc. (a) 37,650 1,076,790
Alkermes, Inc. (a) 49,100 922,098
CV Therapeutics, Inc. (a) 34,590 939,810
Digene Corp. (a) 73,770 2,133,429
Nabi Biopharmaceuticals (a) 104,020 1,401,149
Neurocrine Biosciences, Inc. (a) 21,770 997,066
Rigel Pharmaceuticals, Inc. (a) 71,960 1,448,555
United Therapeutics Corp. (a) 25,800 1,811,418
-----------
Biotechnology Total 10,730,315
HEALTH CARE EQUIPMENT & SUPPLIES - 5.2%
ArthroCare Corp. (a) 55,732 2,026,973
Haemonetics Corp. (a) 27,263 1,211,568
Iris International, Inc. (a) 41,988 730,171
Kyphon, Inc. (a) 42,630 1,888,082
Nektar Therapeutics (a) 71,000 1,212,680
Possis Medical, Inc. (a) 104,700 1,364,241
ResMed, Inc. (a) 37,261 2,695,461
-----------
Health Care Equipment & Supplies Total 11,129,176
HEALTH CARE PROVIDERS & SERVICES - 8.6%
Allscripts Healthcare Solutions, Inc. (a) 23,923 425,351
AmSurg Corp. (a) 38,970 1,084,925
Cerner Corp. (a) 27,088 2,133,451
Chemed Corp. 16,560 670,018
DaVita, Inc. (a) 34,650 1,590,781
HealthExtras, Inc. (a) 168,212 3,490,399
ICON PLC, ADR (a) 72,593 2,942,920
IDX Systems Corp. (a) 32,964 1,044,959
LHC Group, Inc. (a) 71,317 1,340,759
Matria Healthcare, Inc. (a) 24,000 870,000
United Surgical Partners
International, Inc. (a) 73,503 2,815,900
-----------
Health Care Providers & Services Total 18,409,463
PHARMACEUTICALS - 3.5%
MGI Pharma, Inc. (a) 72,125 1,944,490
NitroMed, Inc. (a) 56,400 1,063,704
Salix Pharmaceuticals Ltd. (a) 225,428 4,594,223
-----------
Pharmaceuticals Total 7,602,417
-----------
HEALTH CARE TOTAL 47,871,371
INDUSTRIALS - 16.8%
AEROSPACE & DEFENSE - 2.6%
Armor Holdings, Inc. (a) 27,200 1,153,552
BE Aerospace, Inc. (a) 162,090 2,570,747
Engineered Support Systems, Inc. 53,475 1,823,498
-----------
Aerospace & Defense Total 5,547,797
SHARES VALUE ($)
- --------------------------------------------------------------------------
AIR FREIGHT & LOGISTICS - 0.5%
UTI Worldwide, Inc. 13,962 1,053,573
-----------
Air Freight & Logistics Total 1,053,573
COMMERCIAL SERVICES & SUPPLIES - 5.1%
Corporate Executive Board Co. 47,516 3,837,867
Huron Consulting Group, Inc. (a) 72,100 1,806,105
Kenexa Corp. (a) 107,925 1,467,780
LECG Corp. (a) 59,054 1,360,014
Resources Connection, Inc. (a) 83,966 2,435,014
-----------
Commercial Services & Supplies Total 10,906,780
CONSTRUCTION & ENGINEERING - 1.5%
URS Corp. (a) 83,745 3,155,512
-----------
Construction & Engineering Total 3,155,512
ELECTRICAL EQUIPMENT - 0.4%
Roper Industries, Inc. 25,820 994,586
-----------
Electrical Equipment Total 994,586
INDUSTRIAL CONGLOMERATES - 0.4%
Raven Industries, Inc. 37,210 967,460
-----------
Industrial Conglomerates Total 967,460
MACHINERY - 5.2%
ESCO Technologies, Inc. (a) 6,210 643,853
Joy Global, Inc. 62,523 2,988,599
RBC Bearings, Inc. (a) 35,000 563,500
Terex Corp. (a) 59,854 2,919,678
Wabtec Corp. 155,320 4,038,320
-----------
Machinery Total 11,153,950
MARINE - 0.3%
Dryships, Inc. 46,910 749,622
-----------
Marine Total 749,622
ROAD & RAIL - 0.8%
Landstar System, Inc. 46,720 1,696,870
-----------
Road & Rail Total 1,696,870
-----------
INDUSTRIALS TOTAL 36,226,150
INFORMATION TECHNOLOGY - 26.3%
COMMUNICATIONS EQUIPMENT - 4.9%
F5 Networks, Inc. (a) 55,935 2,309,556
Ixia (a) 150,392 2,701,040
Packeteer, Inc. (a) 166,520 1,968,267
SiRF Technology Holdings, Inc. (a) 140,270 3,562,858
-----------
Communications Equipment Total 10,541,721
COMPUTERS & PERIPHERALS - 1.4%
Komag, Inc. (a) 42,067 1,403,355
Presstek, Inc. (a) 35,900 446,237
Stratasys, Inc. (a) 43,720 1,238,587
-----------
Computers & Peripherals Total 3,088,179
See Accompanying Notes to Financial Statements. | 61
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA SMALL CAP GROWTH FUND I
SHARES VALUE ($)
- --------------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
INFORMATION TECHNOLOGY - (CONTINUED)
ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.4%
Benchmark Electronics, Inc. (a) 37,040 1,078,235
Dolby Laboratories, Inc., Class A (a) 27,010 432,160
Itron, Inc. (a) 13,390 619,555
Trimble Navigation Ltd. (a) 26,670 973,988
-----------
Electronic Equipment & Instruments Total 3,103,938
INTERNET SOFTWARE & SERVICES - 1.5%
Digital River, Inc. (a) 32,980 1,252,580
Equinix, Inc. (a) 51,640 2,012,411
-----------
Internet Software & Services Total 3,264,991
IT SERVICES - 5.8%
Anteon International Corp. (a) 66,760 3,067,622
CACI International, Inc., Class A (a) 50,820 3,183,365
Cognizant Technology Solutions
Corp., Class A (a) 29,806 1,357,067
Euronet Worldwide, Inc. (a) 78,060 2,187,241
Global Payments, Inc. 38,606 2,539,503
-----------
IT Services Total 12,334,798
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 6.4%
ATMI, Inc. (a) 35,620 1,098,165
Cambridge Display Technology, Inc. (a) 63,896 502,861
Cypress Semiconductor Corp. (a) 86,000 1,344,180
FEI Co. (a) 49,900 1,044,407
FormFactor, Inc. (a) 82,410 2,239,080
Hittite Microwave Corp. (a) 91,200 1,870,694
Microsemi Corp. (a) 128,230 3,089,061
PortalPlayer, Inc. (a) 21,200 562,436
Trident Microsystems, Inc. (a) 54,800 1,924,576
-----------
Semiconductors & Semiconductor Equipment Total 13,675,460
SOFTWARE - 4.9%
Embarcadero Technologies, Inc. (a) 297,014 1,761,293
Epicor Software Corp. (a) 143,030 1,908,020
Hyperion Solutions Corp. (a) 22,251 965,026
Informatica Corp. (a) 74,100 846,222
Micromuse, Inc. (a) 171,600 1,144,572
MICROS Systems, Inc. (a) 19,772 881,634
Parametric Technology Corp. (a) 258,850 1,568,631
SERENA Software, Inc. (a) 43,430 819,958
Wind River Systems, Inc. (a) 38,700 508,518
-----------
Software Total 10,403,874
-----------
INFORMATION TECHNOLOGY TOTAL 56,412,961
MATERIALS - 2.4%
CHEMICALS - 1.5%
Airgas, Inc. 31,274 879,738
OM Group, Inc. (a) 115,772 2,255,238
-----------
Chemicals Total 3,134,976
SHARES VALUE ($)
- --------------------------------------------------------------------------
METALS & MINING - 0.9%
Allegheny Technologies, Inc. 42,332 1,169,210
Century Aluminum Co. (a) 34,200 827,640
-----------
Metals & Mining Total 1,996,850
-----------
MATERIALS TOTAL 5,131,826
TELECOMMUNICATION SERVICES - 1.9%
WIRELESS TELECOMMUNICATION SERVICES - 1.9%
Dobson Communications Corp.,
Class A (a) 140,600 1,069,966
Millicom International Cellular SA (a) 85,384 1,640,227
SBA Communications Corp.,
Class A (a) 90,407 1,360,625
-----------
Wireless Telecommunication Services Total 4,070,818
-----------
TELECOMMUNICATION SERVICES TOTAL 4,070,818
Total Common Stocks
(cost of $172,923,285) 210,409,313
SHORT-TERM OBLIGATION - 2.0% PAR ($)
Repurchase agreement with State Street
Bank & Trust Co., dated 08/31/05, due
09/01/05 at 3.430%, collateralized by a
U.S. Treasury Bond maturing 08/15/13,
market value of $4,454,219 (repurchase
proceeds $4,362,416) 4,362,000 4,362,000
-----------
Total Short-Term Obligation
(cost of $4,362,000) 4,362,000
TOTAL INVESTMENTS - 100.0%
(COST OF $177,285,285) (b) 214,771,313
OTHER ASSETS & LIABILITIES, NET - (0.0)% (112,539)
NET ASSETS - 100.0% 214,658,774
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing security.
(b) Cost for federal income tax purposes is $177,924,567.
At August 31, 2005, the Fund held investments in the following sectors:
% OF
SECTOR (UNAUDITED) NET ASSETS
-----------------------------------------------------
Information Technology 26.3%
Health Care 22.3
Industrials 16.8
Consumer Discretionary 12.2
Energy 8.0
Financials 6.0
Materials 2.4
Consumer Staples 2.1
Telecommunications Services 1.9
Short-Term Obligation 2.0
Other Assets & Liabilities, Net (0.0)
-----
100.0%
=====
ACRONYM NAME
------- ----
ADR American Depositary Receipt
62 | See Accompanying Notes to Financial Statements.
INVESTMENT PORTFOLIO ___________________________________________________________
AUGUST 31, 2005 COLUMBIA REAL ESTATE EQUITY FUND
SHARES VALUE ($)
- --------------------------------------------------------------------------
COMMON STOCKS - 95.7%
CONSUMER DISCRETIONARY - 15.0%
HOTELS, RESTAURANTS & LEISURE - 15.0%
Great Wolf Resorts, Inc. (a) 294,300 3,384,450
Hilton Hotels Corp. 2,321,900 53,798,423
Marriott International, Inc., Class A 485,300 30,675,813
Starwood Hotels & Resorts
Worldwide, Inc. 625,900 36,489,970
-----------
Hotels, Restaurants & Leisure Total 124,348,656
-----------
CONSUMER DISCRETIONARY TOTAL 124,348,656
FINANCIALS - 80.7%
REAL ESTATE - 80.7%
Alexandria Real Estate Equities,
Inc., REIT 542,700 44,474,265
Archstone-Smith Trust, REIT 440,671 17,759,041
AvalonBay Communities, Inc., REIT 179,000 15,043,160
Boston Properties, Inc., REIT 199,900 14,222,885
Brookfield Properties Corp. 292,700 8,485,373
CenterPoint Properties Trust, REIT 464,600 19,587,536
Corporate Office Properties
Trust, REIT 371,180 12,931,911
Cousins Properties, Inc., REIT 1,108,050 33,584,996
Duke Realty Corp., REIT 438,800 14,366,312
Equity Office Properties Trust, REIT 891,737 29,694,842
Equity Residential, REIT 796,606 30,087,809
Essex Property Trust, Inc., REIT 77,000 6,772,150
General Growth Properties, Inc., REIT 675,380 30,452,884
Home Properties, Inc., REIT 175,200 7,184,952
Host Marriott Corp., REIT 1,965,300 34,373,097
iStar Financial, Inc., REIT 1,117,250 46,332,357
Kimco Realty Corp., REIT 1,125,000 35,572,500
Liberty Property Trust, REIT 439,500 19,074,300
Mack-Cali Realty Corp., REIT 365,900 16,117,895
Mills Corp., REIT 150,800 8,827,832
Newcastle Investment Corp., REIT 274,500 8,095,005
Pan Pacific Retail Properties, Inc., REIT 251,700 16,680,159
Prentiss Properties Trust, REIT 219,500 8,437,580
ProLogis, REIT 620,906 27,015,620
Public Storage, Inc., REIT 525,732 35,497,425
Regency Centers Corp., REIT 510,900 29,800,797
Simon Property Group, Inc., REIT 624,756 47,525,189
SL Green Realty Corp., REIT 224,900 14,872,637
St. Joe Co. 59,600 4,482,516
Sun Communities, Inc., REIT 114,700 3,888,330
United Dominion Realty Trust,
Inc., REIT 351,100 8,314,048
Vornado Realty Trust, REIT 206,200 17,737,324
-----------
Real Estate Total 667,292,727
-----------
FINANCIALS TOTAL 667,292,727
Total Common Stocks
(cost of $438,170,752) 791,641,383
SHARES VALUE ($)
- --------------------------------------------------------------------------
INCOME DEPOSIT SECURITIES - 1.6%
CONSUMER DISCRETIONARY - 0.3%
HOTELS, RESTAURANTS & LEISURE - 0.3%
Centerplate, Inc. 201,300 2,415,600
-----------
Hotels, Restaurants & Leisure Total 2,415,600
-----------
CONSUMER DISCRETIONARY TOTAL 2,415,600
CONSUMER STAPLES - 0.7%
FOOD & STAPLES RETAILING - 0.7%
B&G Foods, Inc. 476,200 6,166,790
-----------
Food & Staples Retailing Total 6,166,790
-----------
CONSUMER STAPLES TOTAL 6,166,790
TELECOMMUNICATION SERVICES - 0.6%
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.6%
Otelco, Inc. 302,000 4,711,200
-----------
Diversified Telecommunication Services Total 4,711,200
-----------
TELECOMMUNICATION SERVICES TOTAL 4,711,200
Total Income Deposit Securities
(cost of $14,752,900) 13,293,590
SHORT-TERM OBLIGATION - 2.8% PAR ($)
Repurchase agreement with State Street
Bank & Trust Co., dated 08/31/05, due
09/01/05 at 3.430%, collateralized by
U.S. Treasury Notes with various maturities
to 05/31/06, market value of $23,994,294
(repurchase proceeds $23,522,241) 23,520,000 23,520,000
-----------
Total Short-Term Obligation
(cost of $23,520,000) 23,520,000
TOTAL INVESTMENTS - 100.1%
(COST OF $476,443,652) (b) 828,454,973
OTHER ASSETS & LIABILITIES, NET - (0.1)% (1,074,553)
NET ASSETS - 100.0% 827,380,420
See Accompanying Notes to Financial Statements. | 63
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA REAL ESTATE EQUITY FUND
- ---------------------------------------------------------------------------
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing security.
(b) Cost for federal income tax purposes is $477,101,599.
At August 31, 2005, the Fund held investments in the following sectors:
% OF
SECTOR (UNAUDITED) NET ASSETS
----------------------------------------------------
Financials 80.7%
Consumer Discretionary 15.3
Consumer Staples 0.7
Telecommunication Services 0.6
Short-Term Obligation 2.8
Other Assets & Liabilities, Net (0.1)
-----
100.0%
=====
ACRONYM NAME
------- ----
REIT Real Estate Investment Trust
64 | See Accompanying Notes to Financial Statements.
INVESTMENT PORTFOLIO ___________________________________________________________
AUGUST 31, 2005 COLUMBIA TECHNOLOGY FUND
SHARES VALUE ($)
- --------------------------------------------------------------------------
COMMON STOCKS - 98.9%
CONSUMER DISCRETIONARY - 5.8%
HOTELS, RESTAURANTS & LEISURE - 0.6%
Sportingbet PLC (a) 53,000 335,819
-----------
Hotels, Restaurants & Leisure Total 335,819
INTERNET & CATALOG RETAIL - 2.7%
eBay, Inc. (a) 19,200 777,408
Netflix, Inc. (a) 10,780 232,417
Overstock.com, Inc. (a) 8,400 338,856
Provide Commerce, Inc. (a) 11,164 284,905
-----------
Internet & Catalog Retail Total 1,633,586
LEISURE EQUIPMENT & PRODUCTS - 0.5%
Marvel Enterprises, Inc. (a) 15,830 304,727
-----------
Leisure Equipment & Products Total 304,727
MEDIA - 2.0%
XM Satellite Radio Holdings, Inc.,
Class A (a) 35,380 1,247,145
-----------
Media Total 1,247,145
-----------
CONSUMER DISCRETIONARY TOTAL 3,521,277
HEALTH CARE - 3.4%
BIOTECHNOLOGY - 0.9%
Panacos Pharmaceuticals, Inc. (a) 39,400 360,510
Rigel Pharmaceuticals, Inc. (a) 8,750 176,137
-----------
Biotechnology Total 536,647
HEALTH CARE EQUIPMENT & SUPPLIES - 1.2%
Gen-Probe, Inc. (a) 9,170 417,418
Kensey Nash Corp. (a) 10,420 315,726
-----------
Health Care Equipment & Supplies Total 733,144
PHARMACEUTICALS - 1.3%
Adams Respiratory Therapeutics, Inc. (a) 3,400 115,056
NitroMed, Inc. (a) 10,070 189,920
Salix Pharmaceuticals Ltd. (a) 23,930 487,694
-----------
Pharmaceuticals Total 792,670
-----------
HEALTH CARE TOTAL 2,062,461
INDUSTRIALS - 0.9%
COMMERCIAL SERVICES & SUPPLIES - 0.9%
Huron Consulting Group, Inc. (a) 11,670 292,333
Kenexa Corp. (a) 20,840 283,424
-----------
Commercial Services & Supplies Total 575,757
-----------
INDUSTRIALS TOTAL 575,757
SHARES VALUE ($)
- --------------------------------------------------------------------------
INFORMATION TECHNOLOGY - 71.1%
COMMUNICATIONS EQUIPMENT - 8.3%
Cisco Systems, Inc. (a) 42,500 748,850
Comverse Technology, Inc. (a) 26,340 679,045
Corning, Inc. (a) 16,200 323,352
F5 Networks, Inc. (a) 11,300 466,577
Harris Corp. 11,350 438,224
Lucent Technologies, Inc. (a) 96,500 297,220
QUALCOMM, Inc. 7,900 313,709
SiRF Technology Holdings, Inc. (a) 70,885 1,800,479
-----------
Communications Equipment Total 5,067,456
COMPUTERS & PERIPHERALS - 6.2%
Apple Computer, Inc. (a) 18,790 881,815
EMC Corp. (a) 30,850 396,731
Hutchinson Technology, Inc. (a) 70 1,848
Komag, Inc. (a) 25,687 856,918
Palm, Inc. (a) 4,400 150,392
Rackable Systems, Inc. (a) 13,250 169,600
SanDisk Corp. (a) 33,940 1,317,890
-----------
Computers & Peripherals Total 3,775,194
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.4%
Trimble Navigation Ltd. (a) 7,330 267,692
-----------
Electronic Equipment & Instruments Total 267,692
INTERNET SOFTWARE & SERVICES - 8.6%
Google, Inc., Class A (a) 7,210 2,062,060
HouseValues, Inc. (a) 83,379 1,087,262
Sify Ltd., ADR (a) 22,399 113,787
VeriSign, Inc. (a) 19,920 434,256
Yahoo!, Inc. (a) 45,310 1,510,635
-----------
Internet Software & Services Total 5,208,000
IT SERVICES - 7.7%
Affiliated Computer Services, Inc.,
Class A (a) 5,420 281,569
Alliance Data Systems Corp. (a) 7,290 306,690
Cognizant Technology Solutions
Corp., Class A (a) 25,490 1,160,560
Computer Sciences Corp. (a) 6,560 292,248
DST Systems, Inc. (a) 10,100 542,370
Euronet Worldwide, Inc. (a) 8,650 242,373
First Data Corp. 13,770 572,144
Global Payments, Inc. 7,690 505,848
Infosys Technologies Ltd., ADR 8,710 616,581
Paychex, Inc. 4,470 152,561
-----------
IT Services Total 4,672,944
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 24.8%
Advanced Micro Devices, Inc. (a)(b) 9,900 205,623
ATI Technologies, Inc. (a) 37,500 456,750
ATMI, Inc. (a) 6,910 213,035
Broadcom Corp., Class A (a) 47,385 2,061,247
Cypress Semiconductor Corp. (a) 30,800 481,404
See Accompanying Notes to Financial Statements. | 65
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA TECHNOLOGY FUND
SHARES VALUE ($)
- --------------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
INFORMATION TECHNOLOGY - (CONTINUED)
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - (CONTINUED)
FEI Co. (a) 34,400 719,992
FormFactor, Inc. (a) 18,421 500,499
Freescale Semiconductor, Inc. (a) 19,500 465,660
Hittite Microwave Corp. (a) 58,100 1,191,747
Intersil Corp., Class A 15,200 319,200
Marvell Technology Group Ltd. (a) 52,680 2,485,969
Maxim Integrated Products, Inc. 11,400 486,210
MEMC Electronic Materials, Inc. (a) 70,084 1,181,616
Microchip Technology, Inc. 9,500 295,640
Microsemi Corp. (a) 10,380 250,054
Netlogic Microsystems, Inc. (a) 11,600 239,772
NVIDIA Corp. (a) 20,700 635,076
Samsung Electronics Co., Ltd., GDR (c) 3,670 962,458
Silicon Laboratories, Inc. (a) 19,900 617,497
Silicon Storage Technology, Inc. (a) 60,200 292,572
Trident Microsystems, Inc. (a) 23,390 821,457
ZiLOG, Inc. (a) 77,081 199,640
-----------
Semiconductors & Semiconductor Equipment Total 15,083,118
SOFTWARE - 15.1%
Agile Software Corp. (a) 10 66
Amdocs Ltd. (a) 20,620 605,197
Business Objects SA, ADR (a) 11,450 381,743
Check Point Software Technologies
Ltd. (a) 28,320 638,899
Citrix Systems, Inc. (a) 20,620 490,756
Cognos, Inc. (a) 10,390 375,183
Computer Associates International, Inc. 16,400 442,144
Electronic Arts, Inc. (a) 5,790 331,651
Embarcadero Technologies, Inc. (a) 48,660 288,554
Macromedia, Inc. (a) 11,450 423,078
McAfee, Inc. (a) 22,720 696,368
Mercury Interactive Corp. (a) 12,920 473,776
MICROS Systems, Inc. (a) 5,036 224,555
NAVTEQ (a) 14,170 659,472
Oracle Corp. (a) 51,870 672,754
Parametric Technology Corp. (a) 44,180 267,731
SAP AG, ADR 16,150 689,121
Symantec Corp. (a) 35,754 750,119
Synopsys, Inc. (a) 22,610 429,590
TIBCO Software, Inc. (a) 42,100 321,644
-----------
Software Total 9,162,401
-----------
INFORMATION TECHNOLOGY TOTAL 43,236,805
TELECOMMUNICATION SERVICES - 17.7%
DIVERSIFIED TELECOMMUNICATION SERVICES - 1.8%
ALLTEL Corp. 8,860 549,232
Consolidated Communications
Holdings, Inc. (a) 39,800 549,240
-----------
Diversified Telecommunication Services Total 1,098,472
SHARES VALUE ($)
- --------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 15.9%
American Tower Corp., Class A 57,153 1,362,527
Crown Castle International Corp. (a) 54,980 1,361,305
Dobson Communications Corp.,
Class A (a) 198,970 1,514,162
iPCS, Inc. (a) 14,100 590,790
Leap Wireless International, Inc. (a) 22,500 768,600
Millicom International Cellular SA (a) 56,500 1,085,365
Mobile TeleSystems, ADR 17,810 658,970
NII Holdings, Inc. (a) 10,000 762,200
SBA Communications Corp., Class A (a) 59,070 889,003
VimpelCom, ADR (a) 16,820 693,489
-----------
Wireless Telecommunication Services Total 9,686,411
-----------
TELECOMMUNICATION SERVICES TOTAL 10,784,883
Total Common Stocks
(cost of $49,799,901) 60,181,183
SHORT-TERM OBLIGATION - 1.6% PAR ($)
Repurchase agreement with State Street
Bank & Trust Co., dated 08/31/05, due
09/01/05 at 3.430%, collateralized by a
U.S. Treasury Note maturing 09/30/06,
market value of $970,869 (repurchase
proceeds $948,090) 948,000 948,000
-----------
Total Short-Term Obligation
(cost of $948,000) 948,000
TOTAL INVESTMENTS - 100.5%
(COST OF $50,747,901) (d) 61,129,183
OTHER ASSETS & LIABILITIES, NET - (0.5)% (308,597)
NET ASSETS - 100.0% 60,820,586
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing security.
(b) Security pledged as collateral for written option contracts.
(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 August
31, 2005, the value of this security, which is not illiquid, represents
1.6% of net assets.
(d) Cost for federal income tax purposes is $50,998,183.
66 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA TECHNOLOGY FUND
NOTES TO INVESTMENT PORTFOLIO (CONTINUED):
At August 31, 2005, the Fund held investments in the following sectors:
% OF
SECTOR (UNAUDITED) NET ASSETS
-----------------------------------------------------
Information Technology 71.1%
Telecommunication Services 17.7
Consumer Discretionary 5.8
Health Care 3.4
Industrials 0.9
Short-Term Obligation 1.6
Other Assets & Liabilities, Net (0.5)
-----
100.0%
=====
At August 31, 2005, the Fund held the following written option contract:
NUMBER OF
TYPE CONTRACTS PREMIUM VALUE
----------------------------------------------------
Call - Advanced Micro
Devices, Inc.
Strike Price $20.00
Expires 10/22/05 40 $3,680 $6,600
== ====== ======
ACRONYM NAME
------- ----
ADR American Depositary Receipt
GDR Global Depositary Receipt
See Accompanying Notes to Financial Statements. | 67
INVESTMENT PORTFOLIO ___________________________________________________________
AUGUST 31, 2005 COLUMBIA STRATEGIC INVESTOR FUND
SHARES VALUE ($)
- --------------------------------------------------------------------------
COMMON STOCKS - 72.9%
CONSUMER DISCRETIONARY - 8.9%
AUTO COMPONENTS - 1.4%
Modine Manufacturing Co. 50,000 1,758,000
Nokian Renkaat Oyj 266,000 5,661,456
Proliance International, Inc. (a) 11,784 66,815
-----------
Auto Components Total 7,486,271
AUTOMOBILES - 0.1%
Brilliance China Automotive
Holdings Ltd., ADR 40,000 676,800
-----------
Automobiles Total 676,800
DIVERSIFIED CONSUMER SERVICES - 0.5%
Career Education Corp. (a) 40,000 1,568,000
Weight Watchers International, Inc. (a) 20,000 1,132,200
-----------
Diversified Consumer Services Total 2,700,200
HOTELS, RESTAURANTS & LEISURE - 0.2%
Fairmont Hotels & Resorts, Inc. 40,000 1,255,200
-----------
Hotels, Restaurants & Leisure Total 1,255,200
HOUSEHOLD DURABLES - 1.5%
Cavco Industries, Inc. (a) 26,000 871,780
Makita Corp., ADR 62,000 1,228,840
Matsushita Electric Industrial
Co., Ltd., ADR 100,000 1,754,000
Maytag Corp. 75,000 1,417,500
Snap-On, Inc. 50,000 1,775,000
Sony Corp., ADR 30,000 1,008,600
-----------
Household Durables Total 8,055,720
INTERNET & CATALOG RETAIL - 0.3%
Expedia, Inc. (a) 28,750 639,975
IAC/InterActiveCorp (a) 28,750 705,812
-----------
Internet & Catalog Retail Total 1,345,787
LEISURE EQUIPMENT & PRODUCTS - 0.2%
Amer Sports Oyj 41,000 751,150
-----------
Leisure Equipment & Products Total 751,150
MEDIA - 2.4%
Comcast Corp., Class A (a) 72,500 2,188,050
Discovery Holding Co., Class A (a) 12,500 189,250
Entravision Communications
Corp., Class A (a) 75,000 610,500
Liberty Global, Inc., Class A (a) 10,000 507,500
Liberty Media Corp., Class A (a) 100,000 831,000
McGraw-Hill Companies, Inc. 20,000 964,400
Media General, Inc., Class A 30,000 1,973,700
News Corp., Class A 75,000 1,215,750
Time Warner, Inc. 132,500 2,374,400
Tribune Co. 40,000 1,502,800
-----------
Media Total 12,357,350
SHARES VALUE ($)
- --------------------------------------------------------------------------
MULTILINE RETAIL - 1.6%
Federated Department Stores, Inc. 19,469 1,342,955
Fred's, Inc. 20,000 280,200
Kohl's Corp. (a) 42,500 2,229,125
Saks, Inc. (a) 75,000 1,628,250
Stockmann Oyj Abp, Class B 75,000 3,082,678
-----------
Multiline Retail Total 8,563,208
SPECIALTY RETAIL - 0.7%
Blockbuster, Inc., Class A 100,000 657,000
CarMax, Inc. (a) 30,000 955,800
Kirkland's, Inc. (a) 25,050 234,217
Restoration Hardware, Inc. (a) 100,000 714,000
Tiffany & Co. 10,000 374,200
West Marine, Inc. (a) 40,000 744,800
-----------
Specialty Retail Total 3,680,017
-----------
CONSUMER DISCRETIONARY TOTAL 46,871,703
CONSUMER STAPLES - 6.1%
BEVERAGES - 1.0%
Coca-Cola Co. 75,000 3,300,000
Coca-Cola Femsa, SA de CV, ADR 57,500 1,552,500
Constellation Brands, Inc., Class A (a) 20,000 550,400
-----------
Beverages Total 5,402,900
FOOD & STAPLES RETAILING - 1.3%
Kroger Co. (a) 60,000 1,184,400
United Natural Foods, Inc. (a) 40,000 1,360,000
Wal-Mart Stores, Inc. 32,500 1,461,200
Walgreen Co. 62,500 2,895,625
-----------
Food & Staples Retailing Total 6,901,225
FOOD PRODUCTS - 2.0%
Campbell Soup Co. 30,000 882,000
Delta & Pine Land Co. 50,000 1,281,500
General Mills, Inc. 32,500 1,498,900
Hain Celestial Group, Inc. (a) 40,000 754,800
Nestle SA, Registered Shares 9,750 2,739,829
Unilever NV, NY Registered Shares 47,500 3,287,000
-----------
Food Products Total 10,444,029
HOUSEHOLD PRODUCTS - 0.2%
Kimberly-Clark Corp. 20,000 1,246,400
-----------
Household Products Total 1,246,400
PERSONAL PRODUCTS - 0.7%
Avon Products, Inc. 20,000 656,400
Natura Cosmeticos SA 52,500 1,781,926
NBTY, Inc. (a) 50,000 1,094,500
-----------
Personal Products Total 3,532,826
TOBACCO - 0.9%
Altria Group, Inc. 62,500 4,418,750
-----------
Tobacco Total 4,418,750
-----------
CONSUMER STAPLES TOTAL 31,946,130
68 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA STRATEGIC INVESTOR FUND
SHARES VALUE ($)
- --------------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
ENERGY - 8.5%
ENERGY EQUIPMENT & SERVICES - 4.3%
Core Laboratories NV (a) 30,000 954,900
GlobalSantaFe Corp. 30,000 1,406,400
Input/Output, Inc. (a) 125,000 1,080,000
National-Oilwell Varco, Inc. (a) 50,000 3,210,500
Schlumberger Ltd. 57,500 4,958,225
Stolt Offshore SA, ADR (a) 50,000 637,500
Tesco Corp. (a) 50,000 666,302
TGS Nopec Geophysical Co., ASA (a) 75,000 3,186,411
Transocean, Inc. (a) 75,000 4,428,000
Willbros Group, Inc. (a) 125,000 2,160,000
-----------
Energy Equipment & Services Total 22,688,238
OIL, GAS & CONSUMABLE FUELS - 4.2%
Alpha Natural Resources, Inc. (a) 35,000 1,044,050
Apache Corp. 20,000 1,432,400
BP PLC, ADR 32,500 2,222,350
ConocoPhillips 50,000 3,297,000
Exxon Mobil Corp. 62,500 3,743,750
McMoRan Exploration Co. (a) 102,500 1,843,975
Newfield Exploration Co. (a) 82,500 3,895,650
Petroleo Brasileiro SA, ADR 20,000 1,251,200
Plains Exploration &
Production Co. (a) 40,000 1,482,000
Royal Dutch Shell PLC, Class A, ADR 30,000 1,948,800
-----------
Oil, Gas & Consumable Fuels Total 22,161,175
-----------
ENERGY TOTAL 44,849,413
FINANCIALS - 10.8%
CAPITAL MARKETS - 1.9%
Bank of New York Co., Inc. 30,000 917,100
Charles Schwab Corp. 97,500 1,319,175
Janus Capital Group, Inc. 50,000 706,500
Lazard Ltd., Class A 60,000 1,525,200
Morgan Stanley 67,500 3,433,725
Nikko Cordial Corp. (b) 80,000 393,259
Nomura Holdings, Inc., ADR 100,000 1,376,000
Piper Jaffray Companies, Inc. (a) 10,000 304,900
-----------
Capital Markets Total 9,975,859
COMMERCIAL BANKS - 3.0%
Allied Irish Banks PLC, ADR 30,000 1,303,500
HSBC Holdings PLC, ADR 37,500 3,031,500
ICICI Bank Ltd., ADR 20,000 467,600
Mitsubishi Tokyo Financial
Group, Inc., ADR 275,000 2,846,250
Mizuho Financial Group, Inc. 500 2,795,438
SunTrust Banks, Inc. 22,500 1,581,300
U.S. Bancorp 75,000 2,191,500
Zions Bancorporation 20,000 1,397,200
-----------
Commercial Banks Total 15,614,288
CONSUMER FINANCE - 0.2%
MBNA Corp. 40,000 1,008,000
-----------
Consumer Finance Total 1,008,000
SHARES VALUE ($)
- --------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 1.6%
Asset Acceptance Capital Corp. (a) 47,500 1,371,325
Citigroup, Inc. 75,000 3,282,750
JPMorgan Chase & Co. 120,200 4,073,578
-----------
Diversified Financial Services Total 8,727,653
INSURANCE - 3.0%
American International Group, Inc. 50,000 2,960,000
Arthur J. Gallagher & Co. 47,500 1,356,600
Axis Capital Holdings Ltd. 20,000 565,000
Chubb Corp. 10,000 869,600
Hannover Rueckversicherung AG,
Registered Shares 67,500 2,431,869
Jefferson-Pilot Corp. 20,000 994,600
Marsh & McLennan Companies, Inc. 40,000 1,122,000
PartnerRe Ltd. 6,234 378,404
St. Paul Travelers Companies, Inc. 50,005 2,150,715
UnumProvident Corp. 20,000 386,400
Wesco Financial Corp. 7,750 2,739,625
-----------
Insurance Total 15,954,813
-----------
REAL ESTATE - 0.5%
Mitsubishi Estate Co., Ltd. 125,000 1,497,773
Post Properties, Inc., REIT 30,000 1,113,000
-----------
Real Estate Total 2,610,773
THRIFTS & MORTGAGE FINANCE - 0.6%
Fannie Mae 20,000 1,020,800
Freddie Mac 32,500 1,962,350
-----------
Thrifts & Mortgage Finance Total 2,983,150
-----------
FINANCIALS TOTAL 56,874,536
HEALTH CARE - 12.1%
BIOTECHNOLOGY - 2.0%
Abgenix, Inc. (a) 82,500 906,675
Amgen, Inc. (a) 27,500 2,197,250
Applera Corp.-Applied
Biosystems Group 75,000 1,612,500
Biogen Idec, Inc. (a) 47,500 2,002,125
Chiron Corp. (a) 30,000 1,093,200
Millennium Pharmaceuticals, Inc. (a) 75,000 750,750
Pharmion Corp. (a) 20,000 497,000
Qiagen NV (a) 100,000 1,262,000
-----------
Biotechnology Total 10,321,500
HEALTH CARE EQUIPMENT & SUPPLIES - 2.9%
Baxter International, Inc. 87,500 3,528,875
Boston Scientific Corp. (a) 30,000 806,400
Cytyc Corp. (a) 40,000 998,000
Haemonetics Corp. (a) 30,000 1,333,200
Hospira, Inc. (a) 97,500 3,884,400
Medtronic, Inc. 50,000 2,850,000
STERIS Corp. 30,000 748,200
Viasys Healthcare, Inc. (a) 50,000 1,346,500
-----------
Health Care Equipment & Supplies Total 15,495,575
See Accompanying Notes to Financial Statements. | 69
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA STRATEGIC INVESTOR FUND
SHARES VALUE ($)
- --------------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
HEALTH CARE - (CONTINUED)
HEALTH CARE PROVIDERS & SERVICES - 2.9%
Cardinal Health, Inc. 10,000 596,100
Community Health Systems, Inc. (a) 50,000 1,841,500
Health Management Associates,
Inc., Class A 30,000 729,600
HEALTHSOUTH Corp. (a) 100,000 530,000
Henry Schein, Inc. (a) 40,000 1,667,600
LifePoint Hospitals, Inc. (a) 20,000 909,600
McKesson Corp. 56,000 2,613,520
Medco Health Solutions, Inc. (a) 11,049 544,388
Omnicare, Inc. 67,500 3,547,125
Quest Diagnostics, Inc. 25,000 1,249,500
Tenet Healthcare Corp. (a) 102,500 1,248,450
-----------
Health Care Providers & Services Total 15,477,383
PHARMACEUTICALS - 4.3%
Abbott Laboratories 40,000 1,805,200
Andrx Corp. (a) 75,000 1,359,750
Dr. Reddy's Laboratories Ltd., ADR 50,000 908,500
Elan Corp. PLC, ADR (a) 100,000 891,000
Eli Lilly & Co. 30,000 1,650,600
Gedeon Richter Ltd. 12,500 1,997,214
Merck & Co., Inc. 57,500 1,623,225
Novartis AG, ADR 30,000 1,462,500
Pfizer, Inc. 75,700 1,928,079
Schering-Plough Corp. 100,000 2,141,000
Shire Pharmaceuticals Group
PLC, ADR 20,000 762,400
Taro Pharmaceuticals Industries Ltd. (a) 30,000 818,400
Valeant Pharmaceuticals International 100,000 1,998,000
Watson Pharmaceuticals, Inc. (a) 62,500 2,155,000
Wyeth 20,000 915,800
-----------
Pharmaceuticals Total 22,416,668
-----------
HEALTH CARE TOTAL 63,711,126
INDUSTRIALS - 8.9%
AEROSPACE & DEFENSE - 0.2%
Raytheon Co. 30,000 1,176,600
-----------
Aerospace & Defense Total 1,176,600
AIR FREIGHT & LOGISTICS - 0.8%
United Parcel Service, Inc., Class B 37,500 2,658,375
Yamato Transport Co., Ltd. 100,000 1,511,853
-----------
Air Freight & Logistics Total 4,170,228
AIRLINES - 0.4%
AMR Corp. (a) 75,000 944,250
Southwest Airlines Co. 75,000 999,000
-----------
Airlines Total 1,943,250
COMMERCIAL SERVICES & SUPPLIES - 1.6%
Administaff, Inc. 50,000 1,798,500
Avery Dennison Corp. 57,500 3,072,800
Cendant Corp. 60,000 1,220,400
Central Parking Corp. 10,000 158,900
R.R. Donnelley & Sons Co. 62,500 2,335,000
-----------
Commercial Services & Supplies Total 8,585,600
SHARES VALUE ($)
- --------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING - 0.6%
Foster Wheeler Ltd. (a) 82,500 2,219,250
Insituform Technologies, Inc.,
Class A (a) 50,000 1,035,000
-----------
Construction & Engineering Total 3,254,250
ELECTRICAL EQUIPMENT - 0.8%
ABB Ltd. (a) 75,000 544,165
ABB Ltd., ADR (a) 100,000 729,000
Thomas & Betts Corp. (a) 90,000 3,198,600
-----------
Electrical Equipment Total 4,471,765
INDUSTRIAL CONGLOMERATES - 1.0%
3M Co. 25,000 1,778,750
General Electric Co. 60,000 2,016,600
Siemens AG, ADR 17,500 1,338,750
-----------
Industrial Conglomerates Total 5,134,100
MACHINERY - 2.4%
AGCO Corp. (a) 30,000 615,900
Bucyrus International, Inc., Class A 11,000 496,320
Caterpillar, Inc. 60,000 3,329,400
Deere & Co. 25,000 1,634,500
Eaton Corp. 37,500 2,397,000
Hitachi Construction Machinery
Co., Ltd. 100,000 1,547,769
OSG Corp. 55,000 748,271
Pall Corp. 50,000 1,430,000
Timken Co. 20,000 587,400
-----------
Machinery Total 12,786,560
MARINE - 0.6%
A.P. Moller-Maersk A/S 140 1,514,589
Finnlines Oyj 80,000 1,420,706
-----------
Marine Total 2,935,295
TRADING COMPANIES & DISTRIBUTORS - 0.5%
GATX Corp. 62,500 2,533,125
-----------
Trading Companies & Distributors Total 2,533,125
-----------
INDUSTRIALS TOTAL 46,990,773
INFORMATION TECHNOLOGY - 8.6%
COMMUNICATIONS EQUIPMENT - 2.1%
Andrew Corp. (a) 82,500 951,225
Cisco Systems, Inc. (a) 137,500 2,422,750
Comverse Technology, Inc. (a) 40,000 1,031,200
Corning, Inc. (a) 67,500 1,347,300
Nokia Oyj, ADR 100,000 1,577,000
Plantronics, Inc. 57,500 1,874,500
Tandberg ASA 130,000 1,594,234
-----------
Communications Equipment Total 10,798,209
COMPUTERS & PERIPHERALS - 1.0%
Electronics for Imaging, Inc. (a) 72,500 1,435,500
Hewlett-Packard Co. 75,000 2,082,000
International Business Machines Corp. 20,000 1,612,400
Sun Microsystems, Inc. (a) 50,000 190,000
-----------
Computers & Peripherals Total 5,319,900
70 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA STRATEGIC INVESTOR FUND
SHARES VALUE ($)
- --------------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
INFORMATION TECHNOLOGY - (CONTINUED)
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.4%
Celestica, Inc. (a) 40,000 477,200
Murata Manufacturing Co., Ltd. 15,000 789,441
Solectron Corp. (a) 100,000 410,000
Symbol Technologies, Inc. 31,854 292,420
-----------
Electronic Equipment & Instruments Total 1,969,061
INTERNET SOFTWARE & SERVICES - 0.1%
United Online, Inc. 50,000 651,500
-----------
Internet Software & Services Total 651,500
IT SERVICES - 0.9%
DST Systems, Inc. (a) 47,500 2,550,750
First Data Corp. 49,250 2,046,337
-----------
IT Services Total 4,597,087
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 2.4%
Advanced Micro Devices, Inc. (a) 30,000 623,100
FEI Co. (a) 50,000 1,046,500
Intel Corp. 60,000 1,543,200
Leadis Technology, Inc. (a) 50,000 358,000
LSI Logic Corp. (a) 75,000 723,000
Micron Technology, Inc. (a) 75,000 893,250
National Semiconductor Corp. 10,000 249,300
Novellus Systems, Inc. (a) 30,000 804,300
Samsung Electronics Co., Ltd., GDR (c) 15,000 3,933,750
Texas Instruments, Inc. 67,500 2,205,900
United Microelectronics Corp. 149,293 509,088
-----------
Semiconductors & Semiconductor Equipment Total 12,889,388
SOFTWARE - 1.7%
Cadence Design Systems, Inc. (a) 50,000 800,500
Check Point Software
Technologies Ltd. (a) 57,500 1,297,200
Microsoft Corp. 112,500 3,082,500
Novell, Inc. (a) 100,000 658,000
Opsware, Inc. (a) 50,000 231,000
Parametric Technology Corp. (a) 100,000 606,000
Quest Software, Inc. (a) 60,000 813,600
Symantec Corp. (a) 67,500 1,416,150
-----------
Software Total 8,904,950
-----------
INFORMATION TECHNOLOGY TOTAL 45,130,095
MATERIALS - 4.2%
CHEMICALS - 2.2%
Air Products & Chemicals, Inc. 27,500 1,523,500
Calgon Carbon Corp. 100,000 795,000
Dow Chemical Co. 20,000 864,000
Ferro Corp. 60,000 1,138,800
International Flavors & Fragrances, Inc. 30,000 1,083,000
Mosaic Co. (a) 40,000 646,000
Potash Corp. of Saskatchewan, Inc. 50,000 5,503,500
-----------
Chemicals Total 11,553,800
CONSTRUCTION MATERIALS - 0.3%
Martin Marietta Materials, Inc. 22,500 1,627,200
-----------
Construction Materials Total 1,627,200
SHARES VALUE ($)
- --------------------------------------------------------------------------
CONTAINERS & PACKAGING - 0.3%
Sealed Air Corp. (a) 20,000 1,015,000
Smurfit-Stone Container Corp. (a) 40,000 441,600
-----------
Containers & Packaging Total 1,456,600
METALS & MINING - 1.0%
Centerra Gold, Inc. (a) 75,000 1,274,728
Companhia Vale do Rio Doce, ADR 75,000 2,579,250
Gammon Lake Resources, Inc. (a) 50,000 375,500
Newmont Mining Corp. 30,000 1,187,400
-----------
Metals & Mining Total 5,416,878
PAPER & FOREST PRODUCTS - 0.4%
International Paper Co. 30,000 925,500
Votorantim Celulose e Papel SA, ADR 100,000 1,160,000
-----------
Paper & Forest Products Total 2,085,500
-----------
MATERIALS TOTAL 22,139,978
TELECOMMUNICATION SERVICES - 1.5%
DIVERSIFIED TELECOMMUNICATION SERVICES - 1.0%
BellSouth Corp. 40,000 1,051,600
Cincinnati Bell, Inc. (a) 50,000 216,500
SBC Communications, Inc. 42,500 1,023,400
Telekomunikasi Indonesia, ADR 70,000 1,344,000
Verizon Communications, Inc. 47,500 1,553,725
-----------
Diversified Telecommunication Services Total 5,189,225
WIRELESS TELECOMMUNICATION SERVICES - 0.5%
Nextel Partners, Inc., Class A (a) 30,000 787,200
Telemig Celular Participacoes SA 40,000 1,262,000
VimpelCom, ADR (a) 10,000 412,300
-----------
Wireless Telecommunication Services Total 2,461,500
-----------
TELECOMMUNICATION SERVICES TOTAL 7,650,725
UTILITIES - 3.3%
ELECTRIC UTILITIES - 1.4%
Edison International 75,000 3,377,250
Entergy Corp. 20,000 1,498,200
Exelon Corp. 30,000 1,616,700
Westar Energy, Inc. 30,000 720,600
-----------
Electric Utilities Total 7,212,750
GAS UTILITIES - 0.3%
ONEOK, Inc. 37,500 1,275,000
-----------
Gas Utilities Total 1,275,000
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 0.3%
Duke Energy Corp. 40,000 1,159,600
Dynegy, Inc., Class A (a) 117,500 512,300
-----------
Independent Power Producers & Energy Traders Total 1,671,900
MULTI-UTILITIES - 1.1%
Dominion Resources, Inc. 30,000 2,294,400
NiSource, Inc. 75,000 1,810,500
TECO Energy, Inc. 100,000 1,741,000
-----------
Multi-Utilities Total 5,845,900
See Accompanying Notes to Financial Statements. | 71
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA STRATEGIC INVESTOR FUND
SHARES VALUE ($)
- --------------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
UTILITIES - (CONTINUED)
WATER UTILITIES - 0.2%
California Water Service Group 30,000 1,192,500
-----------
Water Utilities Total 1,192,500
-----------
UTILITIES TOTAL 17,198,050
Total Common Stocks
(cost of $289,802,431) 383,362,529
INVESTMENT COMPANIES - 0.6%
iShares MSCI Malaysia Index Fund 150,000 1,089,000
Japan Smaller Capitalization Fund, Inc. 100,000 1,350,000
Thai Fund, Inc. 100,000 945,000
-----------
Total Investment Companies
(cost of $2,730,651) 3,384,000
SHORT-TERM OBLIGATIONS - 27.1% PAR ($)
REPURCHASE AGREEMENT - 24.4%
Repurchase agreement with State Street
Bank & Trust Co., dated 08/31/05,
due 09/01/05 at 3.430%, collateralized
by U.S.Treasury Notes with various
maturities to 09/30/06, market value
of $130,600,786 (repurchase
proceeds $128,050,199) 128,038,000 128,038,000
-----------
U.S. GOVERNMENT AGENCY - 2.7%
Federal Home Loan Bank,
Discount Note
2.150% 09/01/05 (d) 14,226,000 14,226,000
Total Short-Term Obligations
(cost of $142,264,000) 142,264,000
TOTAL INVESTMENTS - 100.6%
(COST OF $434,797,082) (e) 529,010,529
OTHER ASSETS & LIABILITIES, NET - (0.6)% (3,193,470)
NET ASSETS - 100.0% 525,817,059
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 Trustees.
(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 August
31, 2005, the value of this security, which is not illiquid, represents
0.7% of net assets.
(d) The rate shown represents the annualized yield at the date of purchase.
(e) Cost for federal income tax purposes is $436,990,395.
At August 31, 2005, the Fund held investments in the following sectors:
% OF
SECTOR (UNAUDITED) NET ASSETS
------------------------------------------------------------------
Health Care 12.1%
Financials 10.8
Industrials 8.9
Consumer Discretionary 8.9
Information Technology 8.6
Energy 8.5
Consumer Staples 6.1
Materials 4.2
Utilities 3.3
Telecommunication Services 1.5
Investment Companies 0.6
Short-Term Obligations 27.1
Other Assets & Liabilities, Net (0.6)
-----
100.0%
=====
The Fund was invested in the following countries at August 31, 2005:
% OF TOTAL
SUMMARY OF SECURITIES BY COUNTRY (UNAUDITED) VALUE INVESTMENTS
--------------------------------------------------------------------
United States* $428,555,365 81.0%
Japan 17,497,494 3.3
Finland 12,492,990 2.4
Netherlands 10,462,125 2.0
Canada 9,552,430 1.8
Brazil 8,034,376 1.5
United Kingdom 7,965,050 1.5
Switzerland 5,475,494 1.0
Norway 4,780,645 0.9
South Korea 3,933,750 0.7
Germany 3,770,619 0.7
Ireland 2,194,500 0.4
Hungary 1,997,214 0.4
Panama 2,160,000 0.4
Israel 2,115,600 0.4
Mexico 1,552,500 0.3
Denmark 1,514,589 0.3
India 1,376,100 0.3
Indonesia 1,344,000 0.3
China 676,800 0.1
Luxembourg 637,500 0.1
Taiwan 509,088 0.1
Russia Federation 412,300 0.1
------------ -----
$529,010,529 100.0%
============ =====
* Includes Short-Term Obligations.
Certain securities are listed by country of underlying exposure but may
trade predominately on other exchanges.
ACRONYM NAME
------- ----
ADR American Depositary Receipt
GDR Global Depositary Receipt
REIT Real Estate Investment Trust
72 | See Accompanying Notes to Financial Statements.
INVESTMENT PORTFOLIO ___________________________________________________________
AUGUST 31, 2005 COLUMBIA BALANCED FUND
SHARES VALUE ($)
- --------------------------------------------------------------------------
COMMON STOCKS - 59.0%
CONSUMER DISCRETIONARY - 9.1%
DIVERSIFIED CONSUMER SERVICES - 0.9%
Career Education Corp. (a) 73,120 2,866,304
-----------
Diversified Consumer Services Total 2,866,304
HOUSEHOLD DURABLES - 0.4%
Sony Corp., ADR 38,600 1,297,732
-----------
Household Durables Total 1,297,732
INTERNET & CATALOG RETAIL - 0.9%
Amazon.com, Inc. (a) 44,790 1,912,533
Expedia, Inc. (a) 45,200 1,006,152
-----------
Internet & Catalog Retail Total 2,918,685
LEISURE EQUIPMENT & PRODUCTS - 0.4%
Hasbro, Inc. 54,170 1,121,319
-----------
Leisure Equipment & Products Total 1,121,319
MEDIA - 5.0%
Clear Channel Communications, Inc. 33,500 1,115,550
Comcast Corp., Class A (a) 79,826 2,454,649
Liberty Global, Inc., Class A (a) 19,045 966,534
Liberty Media Corp., Class A (a) 311,520 2,588,731
News Corp., Class A 177,860 2,883,111
Time Warner, Inc. 203,030 3,638,298
Viacom, Inc., Class B 58,880 2,001,331
-----------
Media Total 15,648,204
MULTILINE RETAIL - 1.0%
Federated Department Stores, Inc. 15,139 1,044,281
Kohl's Corp. (a) 39,430 2,068,104
-----------
Multiline Retail Total 3,112,385
SPECIALTY RETAIL - 0.5%
RadioShack Corp. 65,060 1,630,403
-----------
Specialty Retail Total 1,630,403
-----------
CONSUMER DISCRETIONARY TOTAL 28,595,032
CONSUMER STAPLES - 3.6%
BEVERAGES - 0.8%
Coca-Cola Co. 58,340 2,566,960
-----------
Beverages Total 2,566,960
FOOD & STAPLES RETAILING - 0.6%
Wal-Mart Stores, Inc. 41,800 1,879,328
-----------
Food & Staples Retailing Total 1,879,328
FOOD PRODUCTS - 1.0%
McCormick & Co., Inc. 39,900 1,353,009
Smithfield Foods, Inc. (a) 62,700 1,746,195
-----------
Food Products Total 3,099,204
SHARES VALUE ($)
- --------------------------------------------------------------------------
HOUSEHOLD PRODUCTS - 0.6%
Colgate-Palmolive Co. 35,930 1,886,325
-----------
Household Products Total 1,886,325
TOBACCO - 0.6%
Altria Group, Inc. 24,565 1,736,746
-----------
Tobacco Total 1,736,746
-----------
CONSUMER STAPLES TOTAL 11,168,563
ENERGY - 1.9%
ENERGY EQUIPMENT & SERVICES - 0.6%
Transocean, Inc. (a) 33,210 1,960,718
-----------
Energy Equipment & Services Total 1,960,718
OIL, GAS & CONSUMABLE FUELS - 1.3%
Anadarko Petroleum Corp. 12,110 1,100,436
BP PLC, ADR 16,260 1,111,859
Devon Energy Corp. 31,170 1,894,201
-----------
Oil, Gas & Consumable Fuels Total 4,106,496
-----------
ENERGY TOTAL 6,067,214
FINANCIALS - 9.7%
CAPITAL MARKETS - 1.7%
E*TRADE Financial Corp. (a) 105,810 1,692,960
Lazard Ltd., Class A 91,640 2,329,489
Morgan Stanley 27,065 1,376,796
-----------
Capital Markets Total 5,399,245
COMMERCIAL BANKS - 0.3%
Fifth Third Bancorp 19,080 790,103
-----------
Commercial Banks Total 790,103
CONSUMER FINANCE - 0.6%
American Express Co. 34,005 1,878,436
-----------
Consumer Finance Total 1,878,436
DIVERSIFIED FINANCIAL SERVICES - 1.8%
Citigroup, Inc. 62,633 2,741,447
JPMorgan Chase & Co. 85,680 2,903,695
-----------
Diversified Financial Services Total 5,645,142
INSURANCE - 4.5%
Ace Ltd. 51,910 2,305,323
American International Group, Inc. 59,550 3,525,360
Berkshire Hathaway, Inc., Class B (a) 1,316 3,653,216
Chubb Corp. 14,545 1,264,833
UnumProvident Corp. 171,100 3,305,652
-----------
Insurance Total 14,054,384
THRIFTS & MORTGAGE FINANCE - 0.8%
MGIC Investment Corp. 40,940 2,555,884
-----------
Thrifts & Mortgage Finance Total 2,555,884
-----------
FINANCIALS TOTAL 30,323,194
See Accompanying Notes to Financial Statements. | 73
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA BALANCED FUND
SHARES VALUE ($)
- --------------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
HEALTH CARE - 9.8%
BIOTECHNOLOGY - 2.5%
Amgen, Inc. (a) 42,893 3,427,151
MedImmune, Inc. (a) 56,230 1,682,964
Millennium Pharmaceuticals, Inc. (a) 292,100 2,923,921
-----------
Biotechnology Total 8,034,036
HEALTH CARE EQUIPMENT & SUPPLIES - 1.8%
Biomet, Inc. 40,540 1,495,521
Thermo Electron Corp. (a) 72,130 2,012,427
Waters Corp. (a) 47,930 2,179,377
-----------
Health Care Equipment & Supplies Total 5,687,325
HEALTH CARE PROVIDERS & SERVICES - 2.5%
AmerisourceBergen Corp. 18,590 1,388,115
Cardinal Health, Inc. 31,650 1,886,657
McKesson Corp. 23,630 1,102,812
WebMD Corp. (a) 308,540 3,381,598
-----------
Health Care Providers & Services Total 7,759,182
PHARMACEUTICALS - 3.0%
Barr Pharmaceuticals, Inc. (a) 60,050 2,738,880
Eli Lilly & Co. 16,035 882,246
Endo Pharmaceuticals Holdings, Inc. (a) 66,200 1,986,000
IVAX Corp. (a) 75,520 1,955,968
Pfizer, Inc. 73,230 1,865,168
-----------
Pharmaceuticals Total 9,428,262
-----------
HEALTH CARE TOTAL 30,908,805
INDUSTRIALS - 7.0%
AEROSPACE & DEFENSE - 1.0%
Honeywell International, Inc. 83,590 3,199,825
-----------
Aerospace & Defense Total 3,199,825
AIR FREIGHT & LOGISTICS - 0.3%
United Parcel Service, Inc., Class B 14,330 1,015,854
-----------
Air Freight & Logistics Total 1,015,854
AIRLINES - 0.7%
Southwest Airlines Co. 171,580 2,285,446
-----------
Airlines Total 2,285,446
COMMERCIAL SERVICES & SUPPLIES - 2.4%
Allied Waste Industries, Inc. (a) 288,650 2,303,427
ARAMARK Corp., Class B 90,900 2,483,388
Cintas Corp. 45,520 1,877,700
Waste Management, Inc. 31,085 852,662
-----------
Commercial Services & Supplies Total 7,517,177
CONSTRUCTION & ENGINEERING - 0.3%
Jacobs Engineering Group, Inc. (a) 14,908 930,259
-----------
Construction & Engineering Total 930,259
SHARES VALUE ($)
- --------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES - 0.9%
Tyco International Ltd. 101,300 2,819,179
-----------
Industrial Conglomerates Total 2,819,179
MACHINERY - 0.9%
Dover Corp. 66,215 2,694,950
-----------
Machinery Total 2,694,950
ROAD & RAIL - 0.5%
Union Pacific Corp. 24,460 1,669,884
-----------
Road & Rail Total 1,669,884
-----------
INDUSTRIALS TOTAL 22,132,574
INFORMATION TECHNOLOGY - 12.7%
COMMUNICATIONS EQUIPMENT - 2.7%
Avaya, Inc. (a) 175,300 1,788,060
Cisco Systems, Inc. (a) 158,650 2,795,413
Corning, Inc. (a) 103,880 2,073,445
Nortel Networks Corp. (a) 615,700 1,871,728
-----------
Communications Equipment Total 8,528,646
COMPUTERS & PERIPHERALS - 2.4%
Dell, Inc. (a) 40,162 1,429,767
Hewlett-Packard Co. 87,250 2,422,060
International Business Machines Corp. 23,930 1,929,237
SanDisk Corp. (a) 45,340 1,760,552
-----------
Computers & Peripherals Total 7,541,616
ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.5%
Agilent Technologies, Inc. (a) 70,920 2,280,787
Celestica, Inc. (a) 148,750 1,774,588
Symbol Technologies, Inc. 57,212 525,206
-----------
Electronic Equipment & Instruments Total 4,580,581
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 3.3%
ATI Technologies, Inc. (a) 230,700 2,809,926
Broadcom Corp., Class A (a) 58,820 2,558,670
Intel Corp. 103,750 2,668,450
Linear Technology Corp. 60,300 2,287,179
-----------
Semiconductors & Semiconductor Equipment Total 10,324,225
SOFTWARE - 2.8%
Electronic Arts, Inc. (a) 20,460 1,171,949
Microsoft Corp. 205,790 5,638,646
Oracle Corp. (a) 163,675 2,122,864
-----------
Software Total 8,933,459
-----------
INFORMATION TECHNOLOGY TOTAL 39,908,527
MATERIALS - 3.0%
CHEMICALS - 0.3%
Cytec Industries, Inc. 23,100 1,099,560
-----------
Chemicals Total 1,099,560
74 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA BALANCED FUND
SHARES VALUE ($)
- --------------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
MATERIALS - (CONTINUED)
CONTAINERS & PACKAGING - 1.3%
Sealed Air Corp. (a) 31,160 1,581,370
Smurfit-Stone Container Corp. (a) 237,000 2,616,480
-----------
Containers & Packaging Total 4,197,850
METALS & MINING - 1.4%
Alcoa, Inc. 79,880 2,139,985
Mittal Steel Co. NV, Class A 74,893 2,108,238
-----------
Metals & Mining Total 4,248,223
-----------
MATERIALS TOTAL 9,545,633
TELECOMMUNICATION SERVICES - 2.2%
DIVERSIFIED TELECOMMUNICATION SERVICES - 2.2%
CenturyTel, Inc. 31,730 1,139,107
Qwest Communications
International, Inc. (a) 446,490 1,741,311
Sprint Nextel Corp. 78,978 2,047,901
Telefonos de Mexico SA de CV, ADR 95,600 1,835,520
-----------
Diversified Telecommunication Services Total 6,763,839
-----------
TELECOMMUNICATION SERVICES TOTAL 6,763,839
Total Common Stocks
(cost of $167,835,308) 185,413,381
MORTGAGE-BACKED SECURITIES - 13.2% PAR ($)
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS - 7.7%
Federal Home Loan Mortgage Corp.
4.000% 09/15/15 6,220,000 6,159,174
4.000% 10/15/18 3,600,000 3,442,445
4.000% 10/15/26 5,300,000 5,258,483
4.500% 03/15/18 2,920,000 2,911,459
4.500% 10/15/18 1,840,000 1,845,706
4.500% 02/15/27 630,000 628,559
4.500% 07/15/27 1,312,012 1,309,012
4.500% 08/15/28 720,000 712,566
6.500% 11/15/30 381,399 384,743
Federal National Mortgage Association
4.500% 11/25/14 630,000 632,546
6.500% 07/25/30 680,300 682,422
-----------
AGENCY COLLATERALIZED
MORTGAGE OBLIGATIONS TOTAL 23,967,115
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES - 5.5%
Federal Home Loan Mortgage Corp.
5.500% 12/01/18 1,472,720 1,505,509
5.500% 07/01/19 418,798 428,071
5.500% 08/01/35 1,830,000 1,850,857
6.000% 03/01/17 144,132 148,717
6.000% 04/01/17 858,470 885,780
6.000% 05/01/17 412,883 426,018
6.000% 08/01/17 277,864 286,703
6.500% 08/01/32 261,968 271,231
Federal National Mortgage Association
5.000% 07/01/18 104,667 105,515
5.000% 08/01/18 1,704,586 1,718,021
5.000% 10/01/18 841,513 848,145
5.000% 05/01/20 1,914,930 1,929,433
5.000% 06/01/20 900,186 907,003
5.000% 07/01/20 4,802,384 4,838,755
5.831% 07/01/32 (b) 756,430 762,226
Government National Mortgage Association
7.000% 10/15/31 125,433 131,988
7.000% 04/15/32 129,921 136,698
7.000% 05/15/32 146,818 154,477
-----------
MORTGAGE-BACKED SECURITIES TOTAL 17,335,147
Total Mortgage-Backed Securities
(cost of $41,004,276) 41,302,262
CORPORATE FIXED-INCOME BONDS & NOTES - 12.8%
BASIC MATERIALS - 0.3%
CHEMICALS - 0.1%
Airgas, Inc.
9.125% 10/01/11 75,000 81,000
EquiStar Chemicals LP
10.125% 09/01/08 25,000 27,531
10.625% 05/01/11 25,000 27,688
Nalco Co.
7.750% 11/15/11 25,000 26,250
-----------
Chemicals Total 162,469
FOREST PRODUCTS & PAPER - 0.0%
Boise Cascade LLC
7.125% 10/15/14 95,000 93,100
-----------
Forest Products & Paper Total 93,100
IRON/STEEL - 0.0%
Russel Metals, Inc.
6.375% 03/01/14 65,000 62,563
-----------
Iron/Steel Total 62,563
METALS & MINING - 0.2%
Alcan, Inc.
4.500% 05/15/13 500,000 489,865
-----------
Metals & Mining Total 489,865
-----------
BASIC MATERIALS TOTAL 807,997
See Accompanying Notes to Financial Statements. | 75
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA BALANCED FUND
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED)
COMMUNICATIONS - 1.5%
ADVERTISING - 0.1%
Lamar Media Corp.
7.250% 01/01/13 175,000 184,188
-----------
Advertising Total 184,188
MEDIA - 0.5%
Comcast Corp.
7.050% 03/15/33 375,000 438,004
Dex Media West LLC
5.875% 11/15/11 30,000 29,400
DirecTV Holdings LLC
8.375% 03/15/13 96,000 105,360
EchoStar DBS Corp.
5.750% 10/01/08 90,000 89,100
6.625% 10/01/14 85,000 84,256
Emmis Operating Co.
6.875% 05/15/12 35,000 35,175
LIN Television Corp.
6.500% 05/15/13 50,000 47,750
R.H. Donnelley Finance Corp.
10.875% 12/15/12 (c) 115,000 132,825
Rogers Cable, Inc.
7.875% 05/01/12 100,000 108,625
Time Warner, Inc.
6.625% 05/15/29 425,000 462,387
-----------
Media Total 1,532,882
TELECOMMUNICATION SERVICES - 0.9%
Cingular Wireless Services, Inc.
8.750% 03/01/31 250,000 352,775
Deutsche Telekom International
Finance BV
8.500% 06/15/10 525,000 601,408
Nextel Communications, Inc.
7.375% 08/01/15 175,000 188,781
Rogers Wireless, Inc.
7.500% 03/15/15 15,000 16,350
8.000% 12/15/12 30,000 32,100
Sprint Capital Corp.
6.875% 11/15/28 450,000 519,543
Verizon Global Funding Corp.
7.750% 12/01/30 700,000 901,033
Vodafone Group PLC
7.750% 02/15/10 350,000 396,533
-----------
Telecommunication Services Total 3,008,523
-----------
COMMUNICATIONS TOTAL 4,725,593
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
CONSUMER CYCLICAL - 0.8%
AUTO MANUFACTURERS - 0.1%
DaimlerChrysler NA Holding Corp.
8.500% 01/18/31 230,000 288,864
-----------
Auto Manufacturers Total 288,864
ENTERTAINMENT - 0.1%
Cinemark USA, Inc.
9.000% 02/01/13 95,000 100,700
Speedway Motorsports, Inc.
6.750% 06/01/13 96,000 99,360
Warner Music Group
7.375% 04/15/14 60,000 61,050
-----------
Entertainment Total 261,110
HOME BUILDERS - 0.0%
K. Hovnanian Enterprises, Inc.
6.000% 01/15/10 25,000 24,437
6.375% 12/15/14 30,000 29,400
6.500% 01/15/14 5,000 4,938
KB Home
8.625% 12/15/08 75,000 81,000
-----------
Home Builders Total 139,775
LEISURE TIME - 0.1%
Royal Caribbean Cruises Ltd.
6.750% 03/15/08 45,000 46,463
6.875% 12/01/13 50,000 53,250
8.750% 02/02/11 55,000 62,425
-----------
Leisure Time Total 162,138
LODGING - 0.2%
Caesars Entertainment, Inc.
7.875% 03/15/10 45,000 49,669
8.875% 09/15/08 15,000 16,556
9.375% 02/15/07 35,000 37,144
Kerzner International Ltd.
8.875% 08/15/11 75,000 80,063
MGM Mirage
6.000% 10/01/09 45,000 45,000
8.500% 09/15/10 30,000 33,000
Starwood Hotels & Resorts
Worldwide, Inc.
7.375% 05/01/07 150,000 155,437
Station Casinos, Inc.
6.875% 03/01/16 165,000 168,712
Wynn Las Vegas LLC
6.625% 12/01/14 70,000 67,988
-----------
Lodging Total 653,569
RETAIL - 0.3%
AutoNation, Inc.
9.000% 08/01/08 100,000 110,750
Couche-Tard
7.500% 12/15/13 125,000 130,000
76 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA BALANCED FUND
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED)
CONSUMER CYCLICAL - (CONTINUED)
RETAIL - (CONTINUED)
Domino's, Inc.
8.250% 07/01/11 30,000 32,100
Group 1 Automotive, Inc.
8.250% 08/15/13 50,000 51,250
Lowe's Companies, Inc.
6.500% 03/15/29 700,000 819,693
Suburban Propane Partners LP
6.875% 12/15/13 45,000 43,537
-----------
Retail Total 1,187,330
-----------
CONSUMER CYCLICAL TOTAL 2,692,786
CONSUMER NON-CYCLICAL - 1.1%
BEVERAGES - 0.4%
Bottling Group LLC
2.450% 10/16/06 700,000 687,666
Constellation Brands, Inc.
8.000% 02/15/08 175,000 184,187
Cott Beverages, Inc.
8.000% 12/15/11 175,000 184,188
-----------
Beverages Total 1,056,041
COMMERCIAL SERVICES - 0.1%
Corrections Corp. of America
6.250% 03/15/13 25,000 24,688
7.500% 05/01/11 100,000 103,000
Iron Mountain, Inc.
7.750% 01/15/15 150,000 153,750
United Rentals, Inc.
7.750% 11/15/13 45,000 43,875
-----------
Commercial Services Total 325,313
FOOD - 0.3%
Kroger Co.
6.200% 06/15/12 400,000 430,652
Safeway, Inc.
4.950% 08/16/10 400,000 401,564
-----------
Food Total 832,216
HEALTHCARE SERVICES - 0.3%
Extendicare Health Services, Inc.
6.875% 05/01/14 30,000 29,550
9.500% 07/01/10 10,000 10,575
Fisher Scientific International, Inc.
6.750% 08/15/14 55,000 57,475
HCA, Inc.
6.950% 05/01/12 125,000 131,790
Triad Hospitals, Inc.
7.000% 05/15/12 25,000 25,875
WellPoint, Inc.
6.800% 08/01/12 600,000 675,864
-----------
Healthcare Services Total 931,129
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
HOUSEHOLD PRODUCTS/WARES - 0.0%
Scotts Co.
6.625% 11/15/13 70,000 72,100
-----------
Household Products/Wares Total 72,100
PHARMACEUTICALS - 0.0%
AmerisourceBergen Corp.
8.125% 09/01/08 60,000 65,700
Omnicare, Inc.
8.125% 03/15/11 45,000 47,025
-----------
Pharmaceuticals Total 112,725
-----------
CONSUMER NON-CYCLICAL TOTAL 3,329,524
ENERGY - 1.0%
COAL - 0.1%
Arch Western Finance LLC
6.750% 07/01/13 155,000 158,487
Peabody Energy Corp.
6.875% 03/15/13 170,000 177,225
-----------
Coal Total 335,712
OIL & GAS - 0.8%
Chesapeake Energy Corp.
6.375% 06/15/15 15,000 15,263
7.500% 09/15/13 145,000 156,237
Devon Energy Corp.
7.950% 04/15/32 375,000 498,810
Marathon Oil Corp.
6.800% 03/15/32 600,000 712,128
Newfield Exploration Co.
6.625% 09/01/14 130,000 135,850
Occidental Petroleum Corp.
4.250% 03/15/10 775,000 770,916
Plains Exploration & Production Co.
7.125% 06/15/14 90,000 96,075
Pogo Producing Co.
8.250% 04/15/11 20,000 21,100
Pride International, Inc.
7.375% 07/15/14 110,000 118,800
Vintage Petroleum, Inc.
7.875% 05/15/11 100,000 105,000
-----------
Oil & Gas Total 2,630,179
OIL & GAS SERVICES - 0.0%
Hornbeck Offshore Services, Inc.
6.125% 12/01/14 50,000 50,125
Universal Compression, Inc.
7.250% 05/15/10 95,000 99,275
-----------
Oil & Gas Services Total 149,400
See Accompanying Notes to Financial Statements. | 77
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA BALANCED FUND
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED)
ENERGY - (CONTINUED)
PIPELINES - 0.1%
MarkWest Energy Partners LP
6.875% 11/01/14 (c) 45,000 45,338
Williams Companies, Inc.
7.125% 09/01/11 15,000 15,900
8.125% 03/15/12 85,000 94,775
-----------
Pipelines Total 156,013
-----------
ENERGY TOTAL 3,271,304
FINANCIALS - 4.6%
BANKS - 0.9%
Marshall & Ilsley Corp.
4.375% 08/01/09 700,000 702,856
US Bank NA
6.375% 08/01/11 600,000 660,168
Wachovia Corp.
4.875% 02/15/14 300,000 302,628
Wells Fargo & Co.
3.419% 03/10/08 (b) 1,200,000 1,200,180
-----------
Banks Total 2,865,832
DIVERSIFIED FINANCIAL SERVICES - 2.9%
American General Finance Corp.
5.375% 09/01/09 475,000 490,020
Capital One Bank
4.875% 05/15/08 325,000 329,134
CIT Group, Inc.
4.125% 02/21/06 575,000 575,023
Citigroup, Inc.
5.000% 09/15/14 1,450,000 1,490,542
Countrywide Home Loans, Inc.
2.875% 02/15/07 600,000 587,862
Goldman Sachs Group, Inc.
6.345% 02/15/34 745,000 805,777
Household Finance Corp.
6.400% 06/17/08 650,000 684,378
JPMorgan Chase Capital XV
5.875% 03/15/35 800,000 815,464
Lehman Brothers Holdings, Inc.
4.000% 01/22/08 800,000 795,736
Merrill Lynch & Co., Inc.
4.125% 01/15/09 1,000,000 992,090
Morgan Stanley
4.750% 04/01/14 400,000 395,624
SLM Corp.
5.125% 08/27/12 990,000 1,020,739
-----------
Diversified Financial Services Total 8,982,389
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
INSURANCE - 0.4%
Allstate Financial Global Funding II
2.625% 10/22/06 (c) 700,000 687,085
Genworth Financial, Inc.
4.750% 06/15/09 650,000 656,006
-----------
Insurance Total 1,343,091
REAL ESTATE INVESTMENT TRUSTS (REITS) - 0.2%
Health Care Property Investors, Inc.
6.450% 06/25/12 500,000 537,525
iStar Financial, Inc.
5.125% 04/01/11 25,000 24,922
Series B,
7.000% 03/15/08 25,000 26,271
-----------
Real Estate Investment Trusts (REITs) Total 588,718
SAVINGS & LOANS - 0.2%
Washington Mutual, Inc.
4.200% 01/15/10 700,000 692,573
-----------
Savings & Loans Total 692,573
-----------
FINANCIALS TOTAL 14,472,603
INDUSTRIALS - 2.1%
AEROSPACE & DEFENSE - 0.5%
L-3 Communications Corp.
6.125% 07/15/13 5,000 5,050
7.625% 06/15/12 170,000 180,200
Lockheed Martin Corp.
8.500% 12/01/29 450,000 646,902
TransDigm, Inc.
8.375% 07/15/11 125,000 132,188
United Technologies Corp.
6.500% 06/01/09 750,000 807,412
-----------
Aerospace & Defense Total 1,771,752
AUTO MANUFACTURERS - 0.3%
Ford Motor Credit Co.
7.375% 10/28/09 855,000 851,152
-----------
Auto Manufacturers Total 851,152
ENVIRONMENTAL CONTROL - 0.2%
Allied Waste North America, Inc.
6.375% 04/15/11 75,000 72,188
Waste Management, Inc.
7.375% 08/01/10 450,000 501,732
-----------
Environmental Control Total 573,920
HAND/MACHINE TOOLS - 0.0%
Kennametal, Inc.
7.200% 06/15/12 85,000 94,147
-----------
Hand/Machine Tools Total 94,147
78 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA BALANCED FUND
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED)
INDUSTRIALS - (CONTINUED)
MACHINERY-DIVERSIFIED - 0.1%
Westinghouse Air Brake
Technologies Corp.
6.875% 07/31/13 155,000 160,425
-----------
Machinery-Diversified Total 160,425
MISCELLANEOUS MANUFACTURING - 0.4%
General Electric Co.
5.000% 02/01/13 1,250,000 1,282,787
-----------
Miscellaneous Manufacturing Total 1,282,787
PACKAGING & CONTAINERS - 0.2%
Ball Corp.
7.750% 08/01/06 175,000 178,937
Jefferson Smurfit Corp.
8.250% 10/01/12 55,000 54,587
Owens-Illinois, Inc.
7.500% 05/15/10 90,000 93,150
Silgan Holdings, Inc.
6.750% 11/15/13 140,000 142,975
Smurfit-Stone Container Corp.
8.375% 07/01/12 25,000 24,938
Stone Container Finance
7.375% 07/15/14 35,000 33,163
-----------
Packaging & Containers Total 527,750
TRANSPORTATION - 0.4%
Canadian National Railway Co.
7.195% 01/02/16 495,302 591,128
Offshore Logistics, Inc.
6.125% 06/15/13 105,000 102,900
Teekay Shipping Corp.
8.875% 07/15/11 60,000 68,775
Union Pacific Corp.
3.875% 02/15/09 500,000 491,230
-----------
Transportation Total 1,254,033
-----------
INDUSTRIALS TOTAL 6,515,966
TECHNOLOGY - 0.2%
COMPUTERS - 0.2%
International Business Machines Corp.
5.875% 11/29/32 500,000 558,380
-----------
Computers Total 558,380
SEMICONDUCTORS - 0.0%
Freescale Semiconductor, Inc.
6.875% 07/15/11 135,000 141,750
-----------
Semiconductors Total 141,750
-----------
TECHNOLOGY TOTAL 700,130
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
UTILITIES - 1.2%
ELECTRIC - 0.8%
AES Corp.
7.750% 03/01/14 70,000 75,775
CenterPoint Energy Houston
Electric LLC
5.750% 01/15/14 500,000 533,510
Exelon Generation Co.
6.950% 06/15/11 500,000 557,090
Nevada Power Co.
5.875% 01/15/15 (c) 15,000 15,075
6.500% 04/15/12 30,000 30,900
NorthWestern Corp.
5.875% 11/01/14 (c) 5,000 5,125
Scottish Power PLC
4.910% 03/15/10 725,000 733,504
Virginia Electric & Power Co.
5.375% 02/01/07 700,000 709,450
-----------
Electric Total 2,660,429
GAS - 0.4%
Kinder Morgan Energy
Partners LP
7.300% 08/15/33 600,000 732,564
Sempra Energy
4.750% 05/15/09 375,000 376,620
-----------
Gas Total 1,109,184
-----------
UTILITIES TOTAL 3,769,613
Total Corporate Fixed-Income Bonds & Notes
(cost of $38,838,016) 40,285,516
GOVERNMENT AGENCIES & OBLIGATIONS - 6.4%
FOREIGN GOVERNMENT OBLIGATIONS - 1.2%
Province of Ontario
3.500% 09/17/07 1,000,000 988,100
Province of Quebec
6.500% 01/17/06 1,100,000 1,110,780
Republic of Italy
2.500% 03/31/06 1,300,000 1,287,689
United Mexican States
7.500% 04/08/33 250,000 292,500
-----------
FOREIGN GOVERNMENT OBLIGATIONS TOTAL 3,679,069
U.S.GOVERNMENT AGENCIES & OBLIGATIONS - 5.2%
Federal Home Loan Bank
3.000% 05/15/06 250,000 248,415
U.S. Treasury Bond
6.250% 08/15/23 4,380,000 5,427,437
U.S. Treasury Inflation
Index Note
3.625% 01/15/08 3,033,853 3,217,426
See Accompanying Notes to Financial Statements. | 79
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA BALANCED FUND
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
GOVERNMENT AGENCIES & OBLIGATIONS - (CONTINUED)
U.S. GOVERNMENT AGENCIES & OBLIGATIONS - (CONTINUED)
U.S. Treasury Note
4.250% 11/15/13 7,460,000 7,592,296
-----------
U.S. GOVERNMENT AGENCIES &
OBLIGATIONS TOTAL 16,485,574
Total Government Agencies & Obligations
(cost of $20,025,987) 20,164,643
COLLATERALIZED MORTGAGE OBLIGATIONS - 2.6%
Bear Stearns Asset Backed Securities, Inc.
5.000% 01/25/34 1,613,411 1,601,617
Countrywide Alternative Loan Trust
4.041% 03/25/34 (b) 4,475,948 4,469,722
SACO I, Inc.
8.715% 09/25/24 (b) 22,248 21,692
Structured Asset Securities Corp.
5.500% 07/25/33 1,286,901 1,303,055
5.500% 05/25/33 862,220 858,081
-----------
Total Collateralized Mortgage Obligations
(cost of $8,274,690) 8,254,167
ASSET-BACKED SECURITIES - 1.7%
Cityscape Home Equity Loan Trust
7.410% 05/25/28 416,187 415,534
7.940% 10/25/18 611,069 609,920
Federal Housing Administration
9.125% 03/25/33 1,532,181 1,533,713
First Alliance Mortgage Loan Trust
7.340% 06/20/27 137,578 137,552
IMC Home Equity Loan Trust
7.310% 11/20/28 1,329,359 1,328,747
7.520% 08/20/28 665,720 664,908
Salomon Brothers Mortgage
Securities VII
7.150% 06/25/28 650,413 645,340
-----------
Total Asset-Backed Securities
(cost of $5,360,122) 5,335,714
COMMERCIAL MORTGAGE-BACKED SECURITIES - 1.5%
Nationslink Funding Corp.
6.888% 11/10/30 4,380,000 4,576,793
-----------
Total Commercial Mortgage-Backed Securities
(cost of $4,425,180) 4,576,793
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
SHORT-TERM OBLIGATION - 2.8%
Repurchase agreement with State Street
Bank & Trust Co., dated 08/31/05, due
09/01/05 at 3.430%, collateralized by a
U.S. Treasury Note maturing 11/30/06,
market value of $8,875,400 (repurchase
proceeds $8,699,829) 8,699,000 8,699,000
-----------
Total Short-Term Obligation
(cost of $8,699,000) 8,699,000
TOTAL INVESTMENTS - 100.0%
(COST OF $294,462,579) (d) 314,031,476
OTHER ASSETS & LIABILITIES, NET - (0.0)% (123,353)
NET ASSETS - 100.0% 313,908,123
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing security.
(b) The interest rate shown on floating rate or variable rate securities
reflects the rate at August 31, 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
August 31, 2005, these securities, which did not include any illiquid
securities, amounted to $885,448, which represents 0.3% of net assets.
(d) Cost for federal income tax purposes is $295,292,358.
At August 31, 2005, the Fund held the following open short futures
contracts:
NUMBER OF AGGREGATE EXPIRATION UNREALIZED
TYPE CONTRACTS VALUE FACE VALUE DATE DEPRECIATION
-------------------------------------------------------------------------
2-Year U.S.
Treasury
Notes 35 $7,248,281 $7,242,812 Dec-2005 $(5,469)
On August 31, 2005, cash of $16,000 was pledged as collateral for open
futures contracts and was being held by the broker of the futures
contracts.
At August 31, 2005, the asset allocation of the Fund is as follows:
% OF
ASSET ALLOCATION (UNAUDITED) NET ASSETS
---------------------------------------------------------------
Common Stocks 59.0%
Mortgage-Backed Securities 13.2
Corporate Fixed-Income Bonds & Notes 12.8
Government Agencies & Obligations 6.4
Collateralized Mortgage Obligations 2.6
Asset-Backed Securities 1.7
Commercial Mortgage-Backed Securities 1.5
Short-Term Obligation 2.8
Other Assets & Liabilities, Net (0.0)
-----
100.0%
=====
ACRONYM NAME
------- ----
ADR American Depositary Receipt
80 | See Accompanying Notes to Financial Statements.
INVESTMENT PORTFOLIO ___________________________________________________________
AUGUST 31, 2005 COLUMBIA SHORT TERM BOND FUND
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
CORPORATE FIXED-INCOME BONDS & NOTES - 33.1%
COMMUNICATIONS - 3.6%
MEDIA - 1.1%
Jones Intercable, Inc.
7.625% 04/15/08 1,875,000 2,015,344
Time Warner, Inc.
6.125% 04/15/06 2,460,000 2,487,208
-----------
Media Total 4,502,552
TELECOMMUNICATION SERVICES - 2.5%
AT&T Wireless Services, Inc.
7.500% 05/01/07 1,970,000 2,070,785
Deutsche Telekom International
Finance BV
8.500% 06/15/10 1,450,000 1,661,033
GTE Southwest, Inc.
6.000% 01/15/06 2,225,000 2,238,839
SBC Communications, Inc.
5.750% 05/02/06 1,600,000 1,615,504
Sprint Capital Corp.
6.375% 05/01/09 1,250,000 1,327,213
Verizon Global Funding Corp.
7.600% 03/15/07 600,000 628,854
Vodafone Group PLC
7.750% 02/15/10 1,100,000 1,246,245
-----------
Telecommunication Services Total 10,788,473
-----------
COMMUNICATIONS TOTAL 15,291,025
CONSUMER CYCLICAL - 1.0%
AUTO MANUFACTURERS - 0.3%
DaimlerChrysler NA Holding Corp.
4.750% 01/15/08 1,275,000 1,277,282
-----------
Auto Manufacturers Total 1,277,282
RETAIL - 0.7%
Lowe's Companies, Inc.
7.500% 12/15/05 1,675,000 1,689,941
Target Corp.
5.950% 05/15/06 1,000,000 1,012,430
-----------
Retail Total 2,702,371
-----------
CONSUMER CYCLICAL TOTAL 3,979,653
CONSUMER NON-CYCLICAL - 3.4%
BEVERAGES - 0.8%
Bottling Group LLC
2.450% 10/16/06 2,300,000 2,259,474
Coca-Cola Enterprises, Inc.
5.750% 11/01/08 1,275,000 1,330,552
-----------
Beverages Total 3,590,026
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
COSMETICS/PERSONAL CARE - 0.2%
Procter & Gamble Co.
4.750% 06/15/07 725,000 733,359
-----------
Cosmetics/Personal Care Total 733,359
FOOD - 1.3%
General Mills, Inc.
2.625% 10/24/06 1,800,000 1,768,590
Kroger Co.
7.650% 04/15/07 1,585,000 1,665,391
Safeway, Inc.
4.950% 08/16/10 1,900,000 1,907,429
-----------
Food Total 5,341,410
HEALTHCARE SERVICES - 0.3%
UnitedHealth Group, Inc.
3.375% 08/15/07 1,415,000 1,394,298
-----------
Healthcare Services Total 1,394,298
HOUSEHOLD PRODUCTS/WARES - 0.8%
Fortune Brands, Inc.
2.875% 12/01/06 3,275,000 3,222,895
-----------
Household Products/Wares Total 3,222,895
-----------
CONSUMER NON-CYCLICAL TOTAL 14,281,988
ENERGY - 1.3%
OIL & GAS - 1.3%
ChevronTexaco Capital Co.
3.500% 09/17/07 1,850,000 1,830,482
Devon Energy Corp.
2.750% 08/01/06 1,825,000 1,799,998
Marathon Oil Corp.
5.375% 06/01/07 1,725,000 1,753,670
-----------
Oil & Gas Total 5,384,150
-----------
ENERGY TOTAL 5,384,150
FINANCIALS - 16.3%
BANKS - 3.9%
Fifth Third Bank
2.700% 01/30/07 2,075,000 2,033,438
Marshall & Ilsley Corp.
4.375% 08/01/09 2,670,000 2,680,894
US Bancorp
3.125% 03/15/08 3,250,000 3,164,330
Wachovia Corp.
3.500% 08/15/08 3,720,000 3,644,893
Wells Fargo & Co.
3.419% 03/10/08(a) 5,000,000 5,000,750
-----------
Banks Total 16,524,305
See Accompanying Notes to Financial Statements. | 81
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA SHORT TERM BOND FUND
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED)
FINANCIALS - (CONTINUED)
DIVERSIFIED FINANCIAL SERVICES - 9.8%
American Express Credit Corp.
3.000% 05/16/08 2,500,000 2,423,200
American General Finance Corp.
3.000% 11/15/06 3,000,000 2,958,930
Bear Stearns Companies, Inc.
6.500% 05/01/06 1,100,000 1,115,664
Capital One Bank
4.875% 05/15/08 1,300,000 1,316,536
CIT Group, Inc.
4.125% 02/21/06 1,700,000 1,700,068
Citigroup, Inc.
6.750% 12/01/05 2,700,000 2,719,089
Countrywide Home Loans, Inc.
2.875% 02/15/07 500,000 489,885
Credit Suisse First Boston USA, Inc.
4.875% 08/15/10 1,480,000 1,503,695
Goldman Sachs Group, Inc.
4.125% 01/15/08 2,560,000 2,553,549
Household Finance Corp.
6.400% 06/17/08 3,225,000 3,395,570
JPMorgan Chase & Co.
3.800% 10/02/09 2,500,000 2,449,175
Lehman Brothers Holdings, Inc.
4.000% 01/22/08 2,500,000 2,486,675
Merrill Lynch & Co., Inc.
4.125% 01/15/09 2,500,000 2,480,225
Morgan Stanley
3.875% 01/15/09 2,400,000 2,365,632
Pitney Bowes Credit Corp.
5.750% 08/15/08 1,525,000 1,587,312
Security Capital Group, Inc.
7.150% 06/15/07 6,315,000 6,617,046
USA Education, Inc.
5.625% 04/10/07 3,000,000 3,065,790
-----------
Diversified Financial Services Total 41,228,041
INSURANCE - 1.0%
Allstate Financial Global Funding II
2.625% 10/22/06(b) 2,450,000 2,404,798
Genworth Financial, Inc.
4.750% 06/15/09 2,010,000 2,028,572
-----------
Insurance Total 4,433,370
REAL ESTATE INVESTMENT TRUSTS - 0.5%
Health Care Property Investors, Inc.
7.500% 01/15/07 1,875,000 1,947,506
-----------
Real Estate Investment Trusts Total 1,947,506
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
SAVINGS & LOANS - 1.1%
Washington Mutual, Inc.
4.200% 01/15/10 2,855,000 2,824,708
World Savings Bank
4.125% 03/10/08 2,000,000 1,995,200
-----------
Savings & Loans Total 4,819,908
-----------
FINANCIALS TOTAL 68,953,130
INDUSTRIALS - 4.4%
AEROSPACE & DEFENSE - 1.0%
Boeing Co.
8.100% 11/15/06 1,820,000 1,904,612
United Technologies Corp.
4.875% 11/01/06 2,475,000 2,486,558
-----------
Aerospace & Defense Total 4,391,170
AUTO MANUFACTURERS - 0.6%
Ford Motor Credit Co.
7.375% 10/28/09 2,760,000 2,747,580
-----------
Auto Manufacturers Total 2,747,580
ENVIRONMENTAL CONTROL - 0.4%
USA Waste Services, Inc.
7.125% 10/01/07 1,430,000 1,506,891
-----------
Environmental Control Total 1,506,891
MACHINERY - 1.0%
Caterpillar Financial Services Corp.
3.625% 11/15/07 1,850,000 1,826,098
John Deere Capital Corp.
4.625% 04/15/09 2,200,000 2,217,028
-----------
Machinery Total 4,043,126
MISCELLANEOUS MANUFACTURING - 0.4%
Honeywell International, Inc.
5.125% 11/01/06 1,620,000 1,638,322
-----------
Miscellaneous Manufacturing Total 1,638,322
TRANSPORTATION - 1.0%
Canadian National Railway Co.
6.450% 07/15/06(a) 910,000 927,199
CSX Corp.
6.750% 03/15/11 1,450,000 1,598,103
Union Pacific Corp.
3.875% 02/15/09 1,825,000 1,792,990
-----------
Transportation Total 4,318,292
-----------
INDUSTRIALS TOTAL 18,645,381
82 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA SHORT TERM BOND FUND
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED)
TECHNOLOGY - 0.6%
COMPUTERS - 0.6%
International Business Machines Corp.
2.375% 11/01/06 2,700,000 2,650,509
-----------
Computers Total 2,650,509
-----------
TECHNOLOGY TOTAL 2,650,509
UTILITIES - 2.5%
ELECTRIC - 1.6%
Exelon Generation Co.
6.950% 06/15/11 1,850,000 2,061,233
Scottish Power PLC
4.910% 03/15/10 2,400,000 2,428,152
Virginia Electric & Power Co.
5.375% 02/01/07 2,400,000 2,432,400
-----------
Electric Total 6,921,785
GAS - 0.9%
Kinder Morgan Energy Partners LP
6.750% 03/15/11 2,200,000 2,409,638
Sempra Energy
4.750% 05/15/09 1,150,000 1,154,968
-----------
Gas Total 3,564,606
-----------
UTILITIES TOTAL 10,486,391
Total Corporate Fixed-Income Bonds & Notes
(cost of $141,075,298) 139,672,227
MORTGAGE-BACKED SECURITIES - 21.3%
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS - 8.2%
Federal Home Loan Mortgage Corp.
3.000% 06/15/09 1,853,923 1,845,993
4.000% 07/15/14 6,750,000 6,703,229
4.000% 09/15/15 3,980,000 3,944,416
4.000% 10/15/26 7,670,000 7,609,918
6.000% 06/15/31 861,672 876,396
7.000% 06/15/22 194,063 193,737
8.500% 09/15/06 17,660 17,633
Federal National Mortgage Association
(c) 05/25/23 1,295,000 1,033,249
4.191% 09/25/18(a) 1,909,479 1,910,596
5.000% 04/25/31 5,304,183 5,326,279
6.000% 01/25/16 113,452 113,388
8.000% 10/25/06 5,884 5,955
Government National Mortgage Association
3.500% 12/20/26 3,937,197 3,915,465
5.000% 05/16/27 650,227 648,756
Small Business Administration
3.875% 06/25/22(a) 517,824 517,708
-----------
AGENCY COLLATERALIZED
MORTGAGE OBLIGATIONS TOTAL 34,662,718
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES - 13.1%
Federal Home Loan Mortgage Corp.
4.000% 05/01/11 5,458,831 5,365,227
5.000% 09/01/19 4,884,642 4,924,262
5.000% 07/01/20 1,744,001 1,758,059
5.500% 05/01/17 244,655 250,089
5.500% 09/01/17 871,921 891,289
5.500% 12/01/17 4,164,226 4,256,721
5.500% 01/01/19 20,344 20,794
5.500% 07/01/19 757,058 773,821
6.000% 10/01/06 57,658 58,178
6.000% 03/01/17 128,634 132,726
6.000% 04/01/17 127,468 131,523
6.000% 08/01/17 370,485 382,271
7.000% 05/01/19 415 420
7.500% 09/01/15 185,759 196,439
8.500% 07/01/30 105,301 114,632
Federal National Mortgage Association
4.500% 12/01/19 3,679,552 3,651,620
4.500% 01/01/20 5,046,312 5,007,259
4.500% 02/01/20 3,865,245 3,835,331
4.500% 04/01/20 6,355,064 6,305,882
4.500% 07/01/20 1,479,030 1,467,584
5.000% 08/01/19 952,108 959,289
5.000% 03/01/20 979,853 987,274
5.000% 04/01/20 6,913,117 6,965,474
5.000% 06/01/20 782,770 788,699
5.500% 02/01/18 2,948,008 3,013,469
6.000% 03/01/09 301,706 306,645
6.000% 05/01/09 70,984 72,146
6.000% 01/01/14 149,599 154,491
6.000% 02/01/17 727,917 751,870
6.000% 05/01/17 311,047 321,282
6.500% 03/01/12 65,591 68,028
6.500% 07/01/32 32,683 33,847
7.500% 08/01/15 125,754 133,188
8.000% 05/01/15 159,108 170,463
8.000% 08/01/30 49,426 52,883
8.000% 05/01/31 56,097 60,020
8.000% 07/01/31 95,563 102,235
Government National Mortgage Association
6.500% 09/15/13 125,712 131,081
6.500% 03/15/32 6,355 6,632
6.500% 11/15/33 624,833 652,052
7.000% 11/15/13 126,536 133,060
7.000% 04/15/29 148,773 156,610
7.000% 08/15/29 5,921 6,233
-----------
MORTGAGE-BACKED SECURITIES TOTAL 55,551,098
Total Mortgage-Backed Securities
(cost of $90,398,419) 90,213,816
See Accompanying Notes to Financial Statements. | 83
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA SHORT TERM BOND FUND
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS - 16.2%
Bank of America Mortgage Securities
5.250% 02/25/18 (d) 1,499,444 1,496,161
Bear Stearns Adjustable Rate
Mortgage Trust
3.515% 06/25/34 (a) 3,583,400 3,520,296
Countrywide Alternative Loan Trust
4.041% 03/25/34 (a) 1,306,413 1,304,596
Countrywide Home Loan
Mortgage Pass Through Trust
4.041% 08/25/18 (a) 9,200,257 9,154,532
4.141% 03/25/34 (a) 6,021,358 6,027,018
5.000% 01/25/18 473,255 472,082
First Horizon Asset Securities, Inc.
4.091% 06/25/18 (a) 2,055,078 2,063,422
4.141% 03/25/18 (a) 5,896,975 5,926,283
GMAC Mortgage Corporation
Loan Trust
4.141% 05/25/18 (a) 3,901,793 3,904,602
Ocwen Residential MBS Corp.
7.000% 10/25/40 (b) 63,041 63,166
PNC Mortgage Securities Corp.
(c) 04/28/27 (b) 8,032 7,429
Residential Accredit Loans, Inc.
4.251% 07/25/32 (a) 111,760 111,874
Residential Asset Securitization Trust
4.091% 02/25/34 (a) 9,280,896 9,288,599
Residential Funding Mortgage
Securities I, Inc.
4.041% 07/25/18 (a) 8,461,515 8,473,700
SACO I, Inc.
7.000% 08/25/36 (b) 486,744 486,890
Sears Corp.
8.500% 04/01/17 66,715 66,782
Structured Asset Securities Corp.
5.500% 05/25/33 431,110 429,041
5.500% 07/25/33 308,458 312,330
5.750% 04/25/33 3,275,170 3,271,790
Washington Mutual Mortgage
Securities Corp.
4.141% 03/25/18 (a) 3,589,783 3,608,055
4.141% 06/25/18 (a) 3,134,135 3,150,307
Wells Fargo Mortgage-Backed
Securities Trust
5.250% 08/25/33 5,246,513 5,266,082
-----------
Total Collateralized Mortgage Obligations
(cost of $68,481,194) 68,405,037
PAR ($) VALUE ($)
- ---------------------------------------------------------------------------
ASSET-BACKED SECURITIES - 13.0%
ABFS Mortgage Loan Trust
4.428% 12/15/33 90,074 86,503
Advanta Mortgage Loan Trust
7.750% 10/25/26 15,383 15,427
AmeriCredit Automobile
Receivables Trust
5.370% 06/12/08 306,004 306,336
Amresco Residential Securities
Mortgage Loan Trust
4.061% 06/25/27 (a) 49,605 49,615
4.121% 07/25/28 (a) 186,097 187,727
Bear Stearns Asset Backed
Securities, Inc.
3.751% 06/25/35 (a) 8,717,293 8,719,996
CIT Equipment Collateral
2.200% 03/20/08 2,688,273 2,653,038
Cityscape Home Equity Loan Trust
7.380% 07/25/28 182,440 182,139
7.410% 05/25/28 46,763 46,689
First Alliance Mortgage Loan Trust
6.680% 06/25/25 204,713 204,150
First Franklin Mortgage Loan
Asset Backed Certificates
3.841% 03/25/25 (a) 1,927,267 1,928,135
Harley-Davidson Motorcycle Trust
3.090% 06/15/10 1,042,528 1,029,392
IMC Home Equity Loan Trust
7.080% 08/20/28 104,935 104,752
7.310% 11/20/28 100,617 100,570
7.500% 04/25/26 595,394 602,533
7.520% 08/20/28 524,587 523,947
KeyCorp Student Loan Trust
3.960% 10/25/25 (a) 12,080,000 12,171,325
4.419% 01/27/23 (a)(b) 3,069,949 3,091,776
Morgan Stanley Dean Witter
4.061% 11/25/32 (a) 107,932 107,965
Nissan Auto Receivables Owner Trust
4.600% 09/17/07 762,714 763,537
Residential Asset Mortgage Products
3.981% 09/25/33 (a) 1,266,802 1,272,274
Residential Funding Mortgage
Securities II, Inc.
3.931% 08/25/33 (a) 108,229 108,424
SLM Student Loan Trust
4.139% 01/25/10 (a) 642,760 642,987
4.469% 07/25/11 (a) 6,030,000 6,032,412
4.590% 01/25/13 (a) 8,950,000 9,210,729
University Support Services, Inc.
3.710% 09/20/15 (a) 792,558 798,859
WFS Financial Owner Trust
2.810% 08/22/11 4,000,000 3,920,080
-----------
Total Asset-Backed Securities
(cost of $54,695,509) 54,861,317
84 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA SHORT TERM BOND FUND
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
GOVERNMENT AGENCIES & OBLIGATIONS - 11.2%
FOREIGN GOVERNMENT OBLIGATIONS - 2.2%
Canadian Government Bond
6.750% 08/28/06 1,000,000 1,027,820
Province of Ontario
3.500% 09/17/07 3,500,000 3,458,350
Province of Quebec
6.500% 01/17/06 1,100,000 1,110,780
Republic of Italy
2.500% 03/31/06 1,950,000 1,931,533
United Mexican States
4.625% 10/08/08 2,000,000 2,004,000
-----------
FOREIGN GOVERNMENT OBLIGATIONS TOTAL 9,532,483
U.S. GOVERNMENT AGENCIES & OBLIGATIONS - 9.0%
A.I.D. Morocco
4.031% 05/01/23(a) 450,000 446,985
Federal Home Loan Bank
3.000% 05/15/06(e) 500,000 496,831
U.S. Treasury Inflation Index Note
3.625% 01/15/08 16,969,111 17,995,879
U.S. Treasury Note
3.375% 10/15/09 19,270,000 18,919,228
-----------
U.S. GOVERNMENT AGENCIES &
OBLIGATIONS TOTAL 37,858,923
Total Government Agencies & Obligations
(cost of $47,846,324) 47,391,406
COMMERCIAL MORTGAGE-BACKED SECURITIES - 3.4%
CS First Boston Mortgage
Securities Corp.
6.480% 05/17/40 4,913,607 5,127,250
LB-UBS Commercial Mortgage Trust
5.642% 12/15/25 1,981,406 2,026,404
Nationslink Funding Corp.
6.888% 11/10/30 2,630,000 2,748,166
Prudential Securities Secured
Financing Corp.
6.480% 11/01/31 4,314,211 4,498,686
-----------
Total Commercial Mortgage-Backed Securities
(cost of $14,529,479) 14,400,506
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
SHORT-TERM OBLIGATION - 1.5%
Repurchase agreement with State Street
Bank & Trust Co., dated 08/31/05, due
09/01/05 at 3.430%, collateralized by a
U.S. Treasury Bond maturing 08/15/13,
market value of $6,420,219 (repurchase
proceeds $6,291,599) 6,291,000 6,291,000
-----------
Total Short-Term Obligation
(cost of $6,291,000) 6,291,000
TOTAL INVESTMENTS - 99.7%
(COST OF $423,317,223) (f) 421,235,309
OTHER ASSETS & LIABILITIES, NET - 0.3% 1,279,682
NET ASSETS - 100.0% 422,514,991
NOTES TO INVESTMENT PORTFOLIO:
(a) The interest rate shown on floating rate or variable rate securities
reflects the rate at August 31, 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
August 31, 2005, these securities, which did not include any illiquid
securities, amounted to $6,054,059, which represents 1.4% of net assets.
(c) Zero coupon bond.
(d) Investments in affiliates during the year ended August 31, 2005:
Security name: Bank of America Mortgage Securities
5.250% 02/25/18
Par as of 08/31/04: $ 2,252,966
Par purchased: $ --
Par sold: $ (753,522)
Par as of 08/31/05: $ 1,499,444
Net realized gain/loss: $ --
Interest income earned: $ 94,868
Value at end of period: $ 1,496,161
(e) Security pledged as collateral for open futures contracts.
(f) Cost for federal income tax purposes is $423,165,126.
At August 31, 2005, the Fund held the following open short futures
contract:
NUMBER OF AGGREGATE EXPIRATION UNREALIZED
TYPE CONTRACTS VALUE FACE VALUE DATE DEPRECIATION
----------------------------------------------------------------------
2-Year U.S.
Treasury
Notes 225 $46,596,094 $46,560,938 Dec-2005 $(35,156)
At August 31, 2005, the asset allocation of the Fund is as follows:
% OF
ASSET ALLOCATION (UNAUDITED) NET ASSETS
----------------------------------------------------------
Corporate Fixed-Income Bonds & Notes 33.1%
Mortgage-Backed Securities 21.3
Collateralized Mortgage Obligations 16.2
Asset-Backed Securities 13.0
Government Agencies & Obligations 11.2
Commercial Mortgage-Backed Securities 3.4
Short-Term Obligation 1.5
Other Assets & Liabilities, Net 0.3
-----
100.0%
=====
See Accompanying Notes to Financial Statements. | 85
INVESTMENT PORTFOLIO____________________________________________________________
AUGUST 31, 2005 COLUMBIA FIXED INCOME SECURITIES FUND
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES - 39.4%
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS - 20.8%
Federal Home Loan Mortgage Corp.
4.000% 09/15/15 6,775,000 6,708,376
4.000% 10/15/18 9,300,000 8,892,984
4.000% 10/15/26 7,720,000 7,659,526
4.500% 03/15/18 5,090,000 5,075,112
4.500% 10/15/18 3,166,000 3,175,817
4.500% 02/15/27 2,050,000 2,045,312
4.500% 07/15/27 6,880,000 6,864,271
4.500% 08/15/28 2,430,000 2,404,911
6.000% 06/15/31 3,392,458 3,450,427
6.500% 10/15/23 510,000 540,278
6.500% 11/15/30 986,160 994,806
Federal National Mortgage
Association
4.500% 11/25/14 2,050,000 2,058,285
Government National Mortgage
Association
4.500% 04/16/28 2,090,000 2,092,853
-----------
AGENCY COLLATERALIZED MORTGAGE
OBLIGATIONS TOTAL 51,962,958
MORTGAGE-BACKED SECURITIES - 18.6%
Federal Home Loan Mortgage Corp.
3.500% 10/01/18 4,589,027 4,323,889
5.500% 12/01/17 356,514 364,433
5.500% 12/01/18 2,021,308 2,066,310
5.500% 07/01/19 1,640,539 1,676,864
5.500% 09/01/34 4,431,766 4,482,169
5.500% 08/01/35 4,856,000 4,911,344
6.000% 05/01/17 3,458,457 3,568,480
Federal National Mortgage Association
5.000% 03/01/18 4,574,121 4,610,171
5.000% 06/01/18 587,147 591,775
5.000% 07/01/18 1,611,489 1,624,190
5.000% 08/01/18 2,494,412 2,514,071
5.000% 10/01/18 4,813,354 4,851,289
5.000% 11/01/19 1,575,919 1,588,130
5.000% 12/01/19 882,202 888,855
5.000% 01/01/20 1,660,177 1,672,750
5.000% 05/01/20 1,902,741 1,917,152
5.000% 06/01/20 2,680,247 2,700,546
5.000% 07/01/20 983,500 990,949
5.950% 06/01/32(a) 56,616 56,964
6.089% 07/01/32(a) 901,572 899,234
-----------
MORTGAGE-BACKED SECURITIES TOTAL 46,299,565
Total Mortgage-Backed Securities
(cost of $97,627,100) 98,262,523
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
CORPORATE FIXED-INCOME BONDS & NOTES - 33.9%
BASIC MATERIALS - 1.0%
CHEMICALS - 0.1%
Airgas, Inc.
9.125% 10/01/11 140,000 151,200
EquiStar Chemicals LP
10.125% 09/01/08 25,000 27,531
10.625% 05/01/11 100,000 110,750
Nalco Co.
7.750% 11/15/11 75,000 78,750
-----------
Chemicals Total 368,231
FOREST PRODUCTS & PAPER - 0.3%
Boise Cascade LLC
7.125% 10/15/14 200,000 196,000
International Paper Co.
4.250% 01/15/09 510,000 504,645
-----------
Forest Products & Paper Total 700,645
IRON/STEEL - 0.1%
Russel Metals, Inc.
6.375% 03/01/14 135,000 129,938
-----------
Iron/Steel Total 129,938
METALS & MINING - 0.5%
Alcan, Inc.
4.500% 05/15/13 1,200,000 1,175,676
-----------
Metals & Mining Total 1,175,676
-----------
BASIC MATERIALS TOTAL 2,374,490
COMMUNICATIONS - 4.0%
ADVERTISING - 0.1%
Lamar Media Corp.
7.250% 01/01/13 225,000 236,813
-----------
Advertising Total 236,813
MEDIA - 1.4%
Comcast Corp.
7.050% 03/15/33 870,000 1,016,168
Dex Media West LLC
5.875% 11/15/11 170,000 166,600
DirecTV Holdings LLC
8.375% 03/15/13 159,000 174,502
EchoStar DBS Corp.
5.750% 10/01/08 270,000 267,300
6.625% 10/01/14 55,000 54,519
Emmis Operating Co.
6.875% 05/15/12 75,000 75,375
LIN Television Corp.
6.500% 05/15/13 200,000 191,000
R.H. Donnelley Finance Corp.
10.875% 12/15/12(b) 145,000 167,475
10.875% 12/15/12 75,000 86,625
86 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA FIXED INCOME SECURITIES FUND
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED)
COMMUNICATIONS - (CONTINUED)
MEDIA - (CONTINUED)
Rogers Cable, Inc.
7.875% 05/01/12 255,000 276,994
Time Warner, Inc.
6.625% 05/15/29 910,000 990,053
-----------
Media Total 3,466,611
TELECOMMUNICATION SERVICES - 2.5%
Cingular Wireless Services, Inc.
8.750% 03/01/31 500,000 705,550
Deutsche Telekom International
Finance BV
8.500% 06/15/10 890,000 1,019,531
Nextel Communications, Inc.
7.375% 08/01/15 350,000 377,562
Rogers Wireless, Inc.
7.500% 03/15/15 30,000 32,700
8.000% 12/15/12 65,000 69,550
Sprint Capital Corp.
6.875% 11/15/28 950,000 1,096,813
Verizon Global Funding Corp.
7.750% 12/01/30 1,700,000 2,188,223
Vodafone Group PLC
7.750% 02/15/10 700,000 793,065
-----------
Telecommunication Services Total 6,282,994
-----------
COMMUNICATIONS TOTAL 9,986,418
CONSUMER CYCLICAL - 2.2%
AUTO MANUFACTURERS - 0.3%
DaimlerChrysler NA Holding Corp.
8.500% 01/18/31 500,000 627,965
-----------
Auto Manufacturers Total 627,965
ENTERTAINMENT - 0.2%
Cinemark USA, Inc.
9.000% 02/01/13 185,000 196,100
Speedway Motorsports, Inc.
6.750% 06/01/13 190,000 196,650
Warner Music Group
7.375% 04/15/14 110,000 111,925
-----------
Entertainment Total 504,675
HOME BUILDERS - 0.1%
K. Hovnanian Enterprises, Inc.
6.000% 01/15/10 40,000 39,100
6.375% 12/15/14 50,000 49,000
6.500% 01/15/14 30,000 29,625
KB Home
8.625% 12/15/08 125,000 135,000
-----------
Home Builders Total 252,725
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
LEISURE TIME - 0.1%
Royal Caribbean Cruises Ltd.
6.750% 03/15/08 80,000 82,600
6.875% 12/01/13 100,000 106,500
8.750% 02/02/11 155,000 175,925
-----------
Leisure Time Total 365,025
LODGING - 0.5%
Caesars Entertainment, Inc.
7.875% 03/15/10 90,000 99,337
8.875% 09/15/08 25,000 27,594
9.375% 02/15/07 70,000 74,288
ITT Corp.
6.750% 11/15/05 70,000 70,263
Kerzner International Ltd.
8.875% 08/15/11 150,000 160,125
MGM Mirage
6.000% 10/01/09 265,000 265,000
8.500% 09/15/10 35,000 38,500
Starwood Hotels & Resorts
Worldwide, Inc.
7.875% 05/01/12 105,000 116,550
Station Casinos, Inc.
6.875% 03/01/16 375,000 383,437
Wynn Las Vegas LLC
6.625% 12/01/14 145,000 140,831
-----------
Lodging Total 1,375,925
RETAIL - 1.0%
AutoNation, Inc.
9.000% 08/01/08 200,000 221,500
Couche-Tard
7.500% 12/15/13 170,000 176,800
Domino's, Inc.
8.250% 07/01/11 50,000 53,500
Group 1 Automotive, Inc.
8.250% 08/15/13 80,000 82,000
Lowe's Companies, Inc.
6.500% 03/15/29 1,510,000 1,768,195
Suburban Propane Partners LP
6.875% 12/15/13 100,000 96,750
-----------
Retail Total 2,398,745
-----------
CONSUMER CYCLICAL TOTAL 5,525,060
CONSUMER NON-CYCLICAL - 3.9%
BEVERAGES - 1.4%
Anheuser-Busch Companies, Inc.
5.750% 04/01/10 530,000 556,638
Constellation Brands, Inc.
8.000% 02/15/08 350,000 368,375
Cott Beverages, Inc.
8.000% 12/15/11 345,000 363,112
Pepsi Bottling Holdings, Inc.
5.625% 02/17/09(b) 2,050,000 2,134,829
-----------
Beverages Total 3,422,954
See Accompanying Notes to Financial Statements. | 87
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA FIXED INCOME SECURITIES FUND
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED)
CONSUMER NON-CYCLICAL - (CONTINUED)
COMMERCIAL SERVICES - 0.2%
Corrections Corp. of America
6.250% 03/15/13 65,000 64,188
7.500% 05/01/11 210,000 216,300
Iron Mountain, Inc.
8.625% 04/01/13 255,000 267,750
United Rentals, Inc.
7.750% 11/15/13 85,000 82,875
-----------
Commercial Services Total 631,113
FOOD - 1.1%
General Mills, Inc.
2.625% 10/24/06 915,000 899,033
Kroger Co.
7.650% 04/15/07 700,000 735,504
Safeway, Inc.
4.950% 08/16/10 1,145,000 1,149,477
-----------
Food Total 2,784,014
HEALTHCARE SERVICES - 1.0%
Extendicare Health Services, Inc.
6.875% 05/01/14 65,000 64,025
9.500% 07/01/10 15,000 15,863
Fisher Scientific International, Inc.
6.750% 08/15/14 115,000 120,175
HCA, Inc.
6.950% 05/01/12 235,000 247,765
Triad Hospitals, Inc.
7.000% 05/15/12 250,000 258,750
UnitedHealth Group, Inc.
3.375% 08/15/07 1,000,000 985,370
WellPoint, Inc.
6.800% 08/01/12 800,000 901,152
-----------
Healthcare Services Total 2,593,100
HOUSEHOLD PRODUCTS/WARES - 0.1%
Scotts Co.
6.625% 11/15/13 175,000 180,250
-----------
Household Products/Wares Total 180,250
PHARMACEUTICALS - 0.1%
AmerisourceBergen Corp.
8.125% 09/01/08 115,000 125,925
Omnicare, Inc.
8.125% 03/15/11 90,000 94,050
-----------
Pharmaceuticals Total 219,975
-----------
CONSUMER NON-CYCLICAL TOTAL 9,831,406
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
ENERGY - 2.6%
COAL - 0.2%
Arch Western Finance LLC
6.750% 07/01/13 210,000 214,725
Peabody Energy Corp.
6.875% 03/15/13 340,000 354,450
-----------
Coal Total 569,175
OIL & GAS - 2.1%
Chesapeake Energy Corp.
6.375% 06/15/15 65,000 66,138
7.500% 09/15/13 320,000 344,800
Devon Energy Corp.
7.950% 04/15/32 775,000 1,030,874
Marathon Oil Corp.
6.800% 03/15/32 1,000,000 1,186,880
Newfield Exploration Co.
6.625% 09/01/14 240,000 250,800
Occidental Petroleum Corp.
4.250% 03/15/10 1,825,000 1,815,382
Plains Exploration & Production Co.
7.125% 06/15/14 170,000 181,475
Pride International, Inc.
7.375% 07/15/14 205,000 221,400
Vintage Petroleum, Inc.
7.875% 05/15/11 150,000 157,500
8.250% 05/01/12 25,000 26,875
-----------
Oil & Gas Total 5,282,124
OIL & GAS SERVICES - 0.1%
Hornbeck Offshore Services, Inc.
6.125% 12/01/14 100,000 100,250
Universal Compression, Inc.
7.250% 05/15/10 190,000 198,550
-----------
Oil & Gas Services Total 298,800
PIPELINES - 0.2%
MarkWest Energy Partners LP
6.875% 11/01/14(b) 90,000 90,675
Williams Companies, Inc.
7.125% 09/01/11 30,000 31,800
8.125% 03/15/12 195,000 217,425
-----------
Pipelines Total 339,900
-----------
ENERGY TOTAL 6,489,999
FINANCIALS - 11.2%
BANKS - 2.9%
Marshall & Ilsley Corp.
4.375% 08/01/09 1,330,000 1,335,427
US Bank NA
6.375% 08/01/11 1,150,000 1,265,322
Wachovia Corp.
4.875% 02/15/14 2,145,000 2,163,790
88 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA FIXED INCOME SECURITIES FUND
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED)
FINANCIALS - (CONTINUED)
BANKS - (CONTINUED)
Wells Fargo & Co.
3.419% 03/10/08(a) 2,400,000 2,400,360
-----------
Banks Total 7,164,899
DIVERSIFIED FINANCIAL SERVICES - 6.6%
American General Finance Corp.
5.375% 09/01/09 850,000 876,877
Capital One Bank
4.875% 05/15/08 725,000 734,222
CIT Group, Inc.
4.125% 02/21/06 1,060,000 1,060,042
Citigroup, Inc.
5.000% 09/15/14 2,655,000 2,729,234
Countrywide Home Loans, Inc.
2.875% 02/15/07 1,000,000 979,770
Goldman Sachs Group, Inc.
6.345% 02/15/34 1,550,000 1,676,449
Household Finance Corp.
6.400% 06/17/08 1,850,000 1,947,846
JPMorgan Chase Capital XV
5.875% 03/15/35 1,925,000 1,962,210
Lehman Brothers Holdings, Inc.
4.000% 01/22/08 1,000,000 994,670
Merrill Lynch & Co., Inc.
4.125% 01/15/09 885,000 878,000
Morgan Stanley
4.750% 04/01/14 730,000 722,014
SLM Corp.
5.125% 08/27/12 2,000,000 2,062,100
-----------
Diversified Financial Services Total 16,623,434
INSURANCE - 1.2%
Allstate Financial Global Funding II
2.625% 10/22/06(b) 1,500,000 1,472,325
Genworth Financial, Inc.
4.750% 06/15/09 1,500,000 1,513,860
-----------
Insurance Total 2,986,185
REAL ESTATE INVESTMENT TRUSTS - 0.5%
Health Care Property Investors, Inc.
6.450% 06/25/12 910,000 978,295
iStar Financial, Inc.
5.125% 04/01/11 175,000 174,454
-----------
Real Estate Investment Trusts Total 1,152,749
-----------
FINANCIALS TOTAL 27,927,267
INDUSTRIALS - 5.7%
AEROSPACE & DEFENSE - 1.4%
L-3 Communications Corp.
6.125% 07/15/13 5,000 5,050
7.625% 06/15/12 330,000 349,800
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
Lockheed Martin Corp.
8.500% 12/01/29 675,000 970,353
TransDigm, Inc.
8.375% 07/15/11 175,000 185,062
United Technologies Corp.
7.125% 11/15/10 1,900,000 2,140,692
-----------
Aerospace & Defense Total 3,650,957
AUTO MANUFACTURERS - 0.7%
Ford Motor Credit Co.
7.375% 10/28/09 1,755,000 1,747,102
-----------
Auto Manufacturers Total 1,747,102
ENVIRONMENTAL CONTROL - 0.7%
Allied Waste North America, Inc.
6.375% 04/15/11 180,000 173,250
Waste Management, Inc.
7.375% 08/01/10 1,330,000 1,482,897
-----------
Environmental Control Total 1,656,147
HAND/MACHINE TOOLS - 0.1%
Kennametal, Inc.
7.200% 06/15/12 165,000 182,756
-----------
Hand/Machine Tools Total 182,756
MACHINERY-DIVERSIFIED - 0.1%
Manitowoc Co., Inc.
7.125% 11/01/13 10,000 10,438
Westinghouse Air Brake
Technologies Corp.
6.875% 07/31/13 200,000 207,000
-----------
Machinery-Diversified Total 217,438
MISCELLANEOUS MANUFACTURING - 1.2%
General Electric Co.
5.000% 02/01/13 2,875,000 2,950,411
-----------
Miscellaneous Manufacturing Total 2,950,411
PACKAGING & CONTAINERS - 0.4%
Ball Corp.
7.750% 08/01/06 375,000 383,437
Owens-Brockway Glass
Container, Inc.
6.750% 12/01/14 25,000 24,938
Owens-Illinois, Inc.
7.500% 05/15/10 185,000 191,475
Silgan Holdings, Inc.
6.750% 11/15/13 285,000 291,056
Smurfit-Stone Container Corp.
9.750% 02/01/11 140,000 145,950
Stone Container Finance
7.375% 07/15/14 75,000 71,063
-----------
Packaging & Containers Total 1,107,919
See Accompanying Notes to Financial Statements. | 89
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA FIXED INCOME SECURITIES FUND
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED)
INDUSTRIALS - (CONTINUED)
TRANSPORTATION - 1.1%
Canadian National Railway Co.
7.195% 01/02/16 1,213,490 1,448,264
Offshore Logistics, Inc.
6.125% 06/15/13 205,000 200,900
Teekay Shipping Corp.
8.875% 07/15/11 305,000 349,606
Union Pacific Corp.
3.875% 02/15/09 790,000 776,143
-----------
Transportation Total 2,774,913
-----------
INDUSTRIALS TOTAL 14,287,643
TECHNOLOGY - 0.4%
COMPUTERS - 0.3%
International Business Machines Corp.
5.875% 11/29/32 700,000 781,732
-----------
Computers Total 781,732
SEMICONDUCTORS - 0.1%
Freescale Semiconductor, Inc.
6.875% 07/15/11 175,000 183,750
-----------
Semiconductors Total 183,750
-----------
TECHNOLOGY TOTAL 965,482
UTILITIES - 2.9%
ELECTRIC - 2.0%
AES Corp.
7.750% 03/01/14 110,000 119,075
CenterPoint Energy Houston
Electric LLC
5.750% 01/15/14 900,000 960,318
Exelon Generation Co.
6.950% 06/15/11 800,000 891,344
Nevada Power Co.
5.875% 01/15/15(b) 50,000 50,250
6.500% 04/15/12 40,000 41,200
NorthWestern Corp.
5.875% 11/01/14(b) 10,000 10,250
Scottish Power PLC
4.910% 03/15/10 1,300,000 1,315,249
Virginia Electric & Power Co.
5.375% 02/01/07 1,480,000 1,499,980
-----------
Electric Total 4,887,666
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
GAS - 0.9%
Kinder Morgan Energy Partners LP
7.300% 08/15/33 1,200,000 1,465,128
Sempra Energy
4.750% 05/15/09 750,000 753,240
-----------
Gas Total 2,218,368
-----------
UTILITIES TOTAL 7,106,034
Total Corporate Fixed-Income Bonds & Notes
(cost of $81,626,198) 84,493,799
GOVERNMENT AGENCIES & OBLIGATIONS - 11.6%
FOREIGN GOVERNMENT OBLIGATIONS - 2.3%
Province of Quebec
7.000% 01/30/07 1,490,000 1,548,199
Republic of Italy
2.500% 03/31/06 2,750,000 2,723,958
United Mexican States
7.500% 04/08/33 1,250,000 1,462,500
-----------
FOREIGN GOVERNMENT OBLIGATIONS TOTAL 5,734,657
U.S. GOVERNMENT AGENCIES & OBLIGATIONS - 9.3%
Federal Home Loan Bank
2.250% 09/13/05 3,060,000 3,058,464
3.000% 05/15/06 350,000 347,782
U.S. Treasury Bond
6.250% 08/15/23 6,080,000 7,533,977
U.S. Treasury Inflation Index Note
3.625% 01/15/08 7,933,767 8,413,823
U.S. Treasury Note
4.250% 11/15/13 3,700,000 3,765,616
-----------
U.S. GOVERNMENT AGENCIES &
OBLIGATIONS TOTAL 23,119,662
Total Government Agencies & Obligations
(cost of $28,588,095) 28,854,319
COLLATERALIZED MORTGAGE OBLIGATIONS - 5.7%
Bear Stearns Asset Backed
Securities, Inc.
5.000% 01/25/34 3,997,369 3,968,148
Countrywide Alternative Loan Trust
4.041% 03/25/34(a) 3,214,072 3,209,602
Countrywide Home Loans Mortgage
Pass Through Trust
4.600% 12/19/33(a) 3,633,676 3,537,165
Structured Asset Securities Corp.
5.500% 07/25/33 3,529,029 3,573,326
-----------
Total Collateralized Mortgage Obligations
(cost of $14,342,050) 14,288,241
90 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA FIXED INCOME SECURITIES FUND
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
ASSET-BACKED SECURITIES - 3.3%
Cityscape Home Equity Loan Trust
7.940% 10/25/18 415,527 414,746
ContiMortgage Home Equity Trust
7.680% 12/25/29 1,021,911 1,022,575
Federal National Mortgage
Association Whole Loan
7.800% 06/25/26 376,381 390,082
IMC Home Equity Loan Trust
7.310% 11/20/28 3,585,610 3,583,961
7.500% 04/25/26 878,450 888,983
7.520% 08/20/28 1,459,258 1,457,478
New Century Home Equity
Loan Trust
7.320% 07/25/29 82,466 84,289
Salomon Brothers Mortgage
Securities VII
7.150% 06/25/28 404,701 401,545
-----------
Total Asset-Backed Securities
(cost of $8,213,877) 8,243,659
COMMERCIAL MORTGAGE-BACKED SECURITIES - 1.3%
Nationslink Funding Corp.
6.888% 11/10/30 3,120,000 3,260,181
-----------
Total Commercial Mortgage-Backed Securities
(cost of $3,350,872) 3,260,181
SHORT-TERM OBLIGATIONS - 3.1%
U.S. GOVERNMENT AGENCY - 1.6%
Federal National Mortgage Association
3.440% 09/14/05(c) 4,000,000 3,995,464
-----------
REPURCHASE AGREEMENT - 1.5%
Repurchase agreement with State Street
Bank & Trust Co., dated 08/31/05, due
09/01/05 at 3.430%, collateralized by
U.S. Treasury Notes with various
maturities to 05/15/14, market
value of $3,939,825 (repurchase
proceeds $3,858,368) 3,858,000 3,858,000
-----------
Total Short-Term Obligations
(cost of $7,853,464) 7,853,464
TOTAL INVESTMENTS - 98.3%
(COST OF $241,601,656) (d) 245,256,186
OTHER ASSETS & LIABILITIES, NET - 1.7% 4,336,959
NET ASSETS - 100.0% 249,593,145
- --------------------------------------------------------------------------
NOTES TO INVESTMENT PORTFOLIO:
(a) The interest rate shown on floating rate or variable rate securities
reflects the rate at August 31, 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
August 31, 2005, these securities, which did not include any illiquid
securities, amounted to $3,925,804, which represents 1.6% of net assets.
(c) The rate shown represents the annualized yield at the date of purchase.
(d) Cost for federal income tax purposes is $242,382,370.
At August 31, 2005, the asset allocation of the Fund is as follows:
% OF
ASSET ALLOCATION (UNAUDITED) NET ASSETS
-------------------------------------------------------------------
Mortgage-Backed Securities 39.4%
Corporate Fixed-Income Bonds & Notes 33.9
Government Agencies & Obligations 11.6
Collateralized Mortgage Obligations 5.7
Asset-Backed Securities 3.3
Commercial Mortgage-Backed Securities 1.3
Short-Term Obligations 3.1
Other Assets & Liabilities, Net 1.7
-----
100.0%
=====
See Accompanying Notes to Financial Statements. | 91
INVESTMENT PORTFOLIO____________________________________________________________
AUGUST 31, 2005 COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
MUNICIPAL BONDS - 97.9%
EDUCATION - 5.9%
EDUCATION - 5.9%
OR Facilities Authority,
Linfield College Project,
Series A,
5.000% 10/01/20 1,825,000 1,930,102
OR Health Sciences University,
Series A,
Insured: MBIA:
(a) 07/01/09 1,530,000 1,347,654
(a) 07/01/12 1,315,000 1,022,899
(a) 07/01/14 2,550,000 1,809,735
(a) 07/01/15 4,325,000 2,927,073
(a) 07/01/21 12,515,000 6,341,476
OR Health, Housing, Educational
& Cultural Facilities Authority:
Linfield College Project,
Series A:
4.650% 10/01/09 555,000 574,159
5.500% 10/01/18 1,000,000 1,040,690
Reed College Project,
Series A:
5.300% 07/01/11 500,000 518,450
Insured: MBIA
5.100% 07/01/10 900,000 956,286
OR Multnomah County Educational
Facilities Authority:
University of Portland Project:
5.700% 04/01/15 1,000,000 1,062,120
6.000% 04/01/20 1,000,000 1,077,750
6.000% 04/01/25 500,000 532,220
Refunding,
Insured: AMBAC:
5.000% 04/01/11 1,150,000 1,205,568
5.750% 04/01/10 2,000,000 2,120,600
-----------
Education Total 24,466,782
-----------
EDUCATION TOTAL 24,466,782
HEALTH CARE - 12.0%
CONTINUING CARE RETIREMENT - 0.7%
OR Albany Hospital Facility Authority,
Mennonite Home Albany,
Series PJ-A:
4.750% 10/01/11 660,000 690,941
5.000% 10/01/12 680,000 721,086
OR Clackamas County Hospital
Facility Authority,
Willamette View, Inc. Project,
Series A,
6.850% 11/01/15 1,480,000 1,593,708
-----------
Continuing Care Retirement Total 3,005,735
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
HOSPITALS - 11.1%
OR Benton County Hospital Facilities
Authority,
Samaritan Health Services Project,
Refunding:
4.400% 10/01/07 220,000 224,629
4.800% 10/01/11 245,000 254,727
5.200% 10/01/17 2,255,000 2,342,246
OR Clackamas County Hospital
Facility Authority:
Legacy Health System:
4.600% 05/01/10 885,000 928,878
5.000% 02/15/16 1,010,000 1,057,500
5.500% 02/15/13 5,450,000 5,838,313
5.500% 02/15/14 2,385,000 2,554,931
5.750% 05/01/12 2,000,000 2,233,460
Legacy Health System, IBC:
Insured: MBIA
5.500% 02/15/13 495,000 537,110
Refunding:
5.250% 05/01/21 4,890,000 5,218,021
5.750% 05/01/16 1,500,000 1,650,225
OR Deschutes County Hospital
Facilities Authority,
Cascade Health Services, Inc.:
5.500% 01/01/22 2,000,000 2,142,000
5.600% 01/01/27 5,550,000 5,942,163
5.600% 01/01/32 2,000,000 2,134,460
OR Medford Hospital Facilities
Authority,
Asante Health System, Series A,
Insured: MBIA:
5.250% 08/15/10 1,500,000 1,597,065
5.250% 08/15/11 800,000 849,672
OR Multnomah County Hospital
Facilities Authority Revenue,
Providence Health System,
5.250% 10/01/16 2,970,000 3,286,067
OR Salem Hospital Facility Authority:
5.000% 08/15/18 2,000,000 2,083,340
5.250% 08/15/14 4,860,000 5,118,163
OR Umatilla County Hospital Facility
Authority,
Catholic Health Initiatives, Series A,
5.750% 12/01/20 285,000 312,351
-----------
Hospitals Total 46,305,321
NURSING HOMES - 0.2%
OR Clackamas County Hospital
Facility Authority,
Odd Fellows Home, Series A,
Refunding,
5.875% 09/15/21 705,000 672,577
-----------
Nursing Homes Total 672,577
-----------
HEALTH CARE TOTAL 49,983,633
92 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
HOUSING - 4.8%
ASSISTED LIVING/SENIOR - 0.4%
OR Clackamas County Hospital
Facility Authority,
Robison Jewish Home Project,
6.250% 10/01/21 1,650,000 1,670,625
-----------
Assisted Living/Senior Total 1,670,625
MULTI-FAMILY - 2.1%
OR Clackamas County Housing
Authority, Multi-Family Housing,
Easton Ridge, Series A,
5.800% 12/01/16 2,255,000 2,279,557
OR Housing & Community Services
Department, Multiple Purpose,
Series A,
Insured: FSA:
3.550% 01/01/13 1,000,000 1,006,400
3.550% 07/01/13 1,000,000 1,004,730
3.650% 01/01/14 1,000,000 1,007,120
3.650% 07/01/14 1,000,000 1,005,980
OR Washington County Housing
Authority, Affordable Housing
Pool, Series A:
5.750% 07/01/23 1,000,000 1,034,640
6.000% 07/01/23 1,000,000 1,040,150
PR Housing Finance Corp.,
Multi-Family Mortgage,
Portfolio A-1,
Insured: FHA
7.500% 04/01/22 565,000 566,797
-----------
Multi-Family Total 8,945,374
SINGLE-FAMILY - 2.3%
OR Housing & Community Services,
Department Mortgage Single
Family Program:
Series A,
4.850% 07/01/10 135,000 141,033
Series D,
6.700% 07/01/13 370,000 370,636
Series E:
5.375% 07/01/21 2,960,000 3,082,988
Insured: FHA:
5.700% 07/01/12 560,000 563,097
5.800% 07/01/14 500,000 502,930
6.000% 07/01/20 1,390,000 1,413,964
Series J,
5.150% 07/01/24 1,950,000 2,014,623
Series M, AMT,
5.800% 07/01/12 190,000 199,823
Series Q:
4.700% 07/01/15 595,000 614,980
4.900% 07/01/17 585,000 605,223
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
OR Housing Finance Revenue,
Insured: FHA
5.800% 07/01/09 150,000 151,056
-----------
Single-Family Total 9,660,353
-----------
HOUSING TOTAL 20,276,352
OTHER - 26.1%
OTHER - 0.9%
OR Health, Housing, Educational
& Cultural Facilities Authority,
Goodwill Industries Lane
County, Series A,
6.650% 11/15/22(b) 3,750,000 3,781,013
-----------
Other Total 3,781,013
POOL/BOND BANK - 0.3%
OR Economic Community
Development Department,
Series A,
Insured: MBIA
5.375% 01/01/11 1,105,000 1,183,499
-----------
Pool/Bond Bank Total 1,183,499
REFUNDED/ESCROWED (C) - 24.9%
OR Board of Higher Education:
Lottery Education Project,
Series A:
Pre-refunded 04/01/09,
Insured: FSA
5.250% 04/01/13 1,600,000 1,731,808
Pre-refunded 04/01/11,
Insured: FSA
5.000% 04/01/14 2,705,000 2,943,419
Series A,
Pre-refunded 08/01/11:
5.250% 08/01/14 1,225,000 1,345,711
5.250% 08/01/16 4,550,000 4,998,357
OR City Sewer,
Pre-refunded 10/01/05,
6.500% 10/01/07 390,000 393,693
OR Clackamas County Hospital
Facility Authority,
Kaiser Permanente,
Series A,
Escrowed to Maturity,
5.375% 04/01/14 7,135,000 7,712,364
See Accompanying Notes to Financial Statements. | 93
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
OTHER - (CONTINUED)
REFUNDED/ESCROWED (C) - (CONTINUED)
OR Clackamas County:
School District No. 086,
Pre-refunded 06/15/10,
6.000% 06/15/16 2,350,000 2,641,212
School District No. 108,
Insured: FSA
5.375% 06/15/15 1,055,000 1,170,850
School District No. 12,
North Clackamas,
Pre-refunded 06/01/09,
Insured: FGIC:
5.250% 06/01/11 1,000,000 1,075,880
5.250% 06/01/15 2,750,000 2,958,670
School District No. 62C,
Pre-refunded 06/15/10,
5.375% 06/15/17 1,250,000 1,370,462
School District No. 7J,
Lake Oswega,
Pre-refunded 06/01/11:
5.375% 06/01/15 2,450,000 2,717,809
5.375% 06/01/16 1,295,000 1,436,556
5.375% 06/01/17 2,535,000 2,812,101
OR Coos County,
School District No. 13,
North Bend,
Pre-refunded 06/15/12,
Insured: FSA
5.500% 06/15/15 1,765,000 1,988,149
OR Department of Administrative
Services, Certificates of
Participation, Series A,
Pre-refunded 06/01/07,
Insured: AMBAC
5.300% 05/01/08 750,000 785,985
OR Department of Transportation,
Highway User Tax,
Series A,
Pre-refunded 11/15/12,
5.500% 11/15/16 2,500,000 2,830,325
OR Deschutes County,
Certificates of Participation,
Series A,
Pre-refunded 06/01/09,
5.050% 06/01/17 420,000 448,148
School District No. 1,
Pre-refunded 06/15/11,
Series A,
Insured: FSA
5.500% 06/15/18 1,000,000 1,116,360
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
OR Jackson County:
School District No. 4, Phoenix-Talent,
Pre-refunded 06/15/11,
Insured: FSA
5.500% 06/15/16 1,000,000 1,116,360
School District No. 9, Eagle Point,
Pre-refunded 06/15/11,
5.625% 06/15/15 1,920,000 2,155,968
OR Josephine County,
School District No. 7, Grants Pass,
Pre-refunded 06/01/07,
Insured: FGIC
5.700% 06/01/13 2,000,000 2,093,980
OR Linn County Community:
School District No. 9:
Lebanon,
Pre-refunded 06/15/13,
Insured: FGIC
5.550% 06/15/21 2,000,000 2,286,380
Pre-refunded 06/15/13,
Series 2001,
Insured: FGIC
5.250% 06/15/15 405,000 454,163
OR Metro Washington Park Zoo,
Pre-refunded 01/15/07,
Series A,
5.300% 01/15/11 1,000,000 1,032,390
OR Multnomah County,
Certificates of Participation,
Pre-refunded 08/01/08,
Series 1998,
4.550% 08/01/10 235,000 247,093
OR Multnomah County:
School District No. 7,
Reynolds,
Pre-refunded 06/15/11:
5.625% 06/15/14 2,670,000 2,998,143
5.625% 06/15/17 1,000,000 1,122,900
Series A,
Pre-refunded 04/01/10,
5.500% 04/01/19 2,395,000 2,630,165
OR Multnomah-Clackamas Counties,
Centennial School District
No. 28-302, Pre-refunded 06/15/11,
Insured: FGIC:
5.375% 06/15/16 2,055,000 2,280,660
5.375% 06/15/17 2,280,000 2,530,367
5.375% 06/15/18 2,490,000 2,763,427
OR North Clackamas Parks
& Recreation District Facilities,
Escrowed to Maturity,
5.700% 04/01/13 2,920,000 3,211,387
94 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
OTHER - (CONTINUED)
REFUNDED/ESCROWED (C) - (CONTINUED)
OR Northern Oregon Corrections,
Pre-refunded 09/15/07,
Insured: AMBAC:
5.250% 09/15/12 1,000,000 1,045,420
5.300% 09/15/13 1,000,000 1,046,400
OR Portland Arena Gas Tax,
Pre-refunded 06/01/06,
Insured: FSA:
(a) 06/01/16 1,100,000 584,529
(a) 06/01/17 2,320,000 1,153,643
OR Portland Community College District,
Series A,
Pre-refunded 06/01/11:
5.375% 06/01/14 1,925,000 2,135,422
5.375% 06/01/16 2,705,000 3,000,684
5.375% 06/01/17 2,540,000 2,817,647
OR Powell Valley Water District,
Pre-refunded 08/01/09,
6.000% 02/01/15 620,000 683,674
OR Salem Water & Sewer,
Pre-refunded 06/01/10,
Insured: FSA
5.300% 06/01/15 1,500,000 1,638,615
OR Umatilla County Hospital
Facility Authority,
Catholic Health Initiatives, Series A,
Escrowed to Maturity:
5.750% 12/01/20 245,000 272,244
6.000% 12/01/30 4,825,000 5,402,794
OR Washington & Clackamas
Counties,
School District No. 23J, Tigard,
Pre-refunded 06/15/12,
Insured: MBIA
5.375% 06/15/17 1,500,000 1,678,365
OR Washington County:
School District No. 15, Forest Grove,
Pre-refunded 06/15/11,
Insured: FSA:
5.375% 06/15/13 2,070,000 2,297,307
5.375% 06/15/15 2,515,000 2,791,172
School District No. 48J,
Beaverton:
Pre-refunded 06/01/09,
Insured: FGIC
5.100% 06/01/12 500,000 535,305
Pre-refunded 08/01/08,
5.250% 08/01/10 1,150,000 1,220,955
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
OR Washington, Multnomah
& Yamhill Counties,
School District No. 1J:
Pre-refunded 06/01/09,
5.250% 06/01/14 500,000 534,230
Pre-refunded 06/01/11,
Insured: MBIA
5.000% 06/01/13 1,500,000 1,624,725
OR Yamhill County,
School District No. 029J,
Pre-refunded 06/15/12,
Insured: MBIA
5.250% 06/15/16 2,535,000 2,817,374
VI Virgin Islands Public Finance
Authority, Series A,
Escrowed to Maturity,
7.300% 10/01/18 1,185,000 1,522,725
-----------
Refunded/Escrowed Total 104,204,472
-----------
OTHER TOTAL 109,168,984
OTHER REVENUE - 2.1%
RECREATION - 2.1%
OR Board of Higher Education,
Lottery Education Project:
Series A,
Insured: FSA:
5.000% 04/01/14 1,830,000 2,017,703
5.000% 04/01/14 1,000,000 1,108,010
5.250% 04/01/11 4,000,000 4,306,880
Series B,
Insured: FSA
5.250% 04/01/15 1,315,000 1,416,347
-----------
Recreation Total 8,848,940
-----------
OTHER REVENUE TOTAL 8,848,940
TAX-BACKED - 36.9%
LOCAL APPROPRIATED - 0.5%
OR Deschutes & Jefferson County,
School District No. 02J,
Series B,
Insured: FGIC
(a) 06/15/22 2,335,000 1,121,150
OR Multnomah County,
Certificates of Participation,
Series 1998,
4.550% 08/01/10 765,000 799,953
-----------
Local Appropriated Total 1,921,103
See Accompanying Notes to Financial Statements. | 95
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
TAX-BACKED - (CONTINUED)
LOCAL GENERAL OBLIGATIONS - 22.0%
OR Aurora,
5.600% 06/01/24 1,205,000 1,279,806
OR Bend Municipal Airport Project,
Series B, AMT,
5.375% 06/01/13 150,000 158,063
OR Benton & Linn Counties,
School District No. 509J,
Corvallis,
Insured: FSA
5.000% 06/01/17 2,665,000 2,907,702
OR Canyonville South Umpqua
Rural Fire District,
5.400% 07/01/31 610,000 618,772
OR Clackamas & Washington Counties,
School District No. 003JT,
Insured: FGIC
(a) 06/15/17 4,000,000 2,446,800
OR Clackamas Community College,
Insured: FGIC
5.250% 06/15/15 1,500,000 1,640,505
OR Clackamas County:
School District No. 007J,
Lake Oswego,
Refunding,
Insured: FSA
5.250% 06/01/21 2,000,000 2,317,960
School District No. 108,
Estacada,
Series 2005,
Insured: FSA
5.500% 06/15/25 2,485,000 2,998,774
OR Columbia County,
School District No. 502,
Deferred Interest,
Insured: FGIC:
(a) 06/01/13 1,685,000 1,255,106
(a) 06/01/14 1,025,000 729,175
OR Coos Bay,
4.900% 09/01/07 1,505,000 1,526,807
OR Crook County,
School District,
Insured: FSA
5.000% 02/01/14 2,860,000 3,114,168
OR Eugene Public Safety Facilities,
5.500% 06/01/10 850,000 865,938
OR Jackson County:
School District No. 009,
Series 2005,
Insured: MBIA:
5.500% 06/15/20 1,000,000 1,182,180
5.500% 06/15/21 1,410,000 1,675,855
School District No. 6,
Central Point,
6.000% 06/15/09 1,090,000 1,201,060
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
OR Jefferson County,
School District No. 509J,
Madras School District,
Insured: FGIC
5.250% 06/15/18 1,075,000 1,180,253
OR Josephine County,
Unit School District,
Three Rivers,
Insured: FGIC:
5.000% 12/15/15 1,000,000 1,115,060
5.000% 12/15/16 1,000,000 1,118,040
OR Lane County:
School District No. 19,
Springfield,
Refunding,
Insured: FGIC:
6.000% 10/15/12 1,740,000 2,021,932
6.000% 10/15/14 1,310,000 1,557,957
School District No. 4J,
Eugene,
Refunding:
5.000% 07/01/12 1,000,000 1,098,060
5.250% 07/01/13 1,000,000 1,120,400
OR Lincoln County,
School District,
Insured: FGIC
5.600% 06/15/10 3,480,000 3,780,011
OR Linn Benton Community College,
Insured: FGIC:
(a) 06/15/13 1,000,000 743,990
(a) 06/15/14 1,000,000 711,290
OR Linn County,
Community School District No. 9,
Lebanon,
Series 2001,
Insured: FGIC
5.250% 06/15/15 305,000 339,340
OR Madras Aquatic Center District,
5.000% 06/01/22 1,695,000 1,785,699
OR Metro,
5.250% 09/01/14 3,130,000 3,462,813
OR Multnomah County,
School District No. 40,
Insured: FSA
5.000% 12/01/14 1,790,000 1,928,868
OR Multnomah-Clackamas Counties,
School District No. 10JT,
Series A,
Insured: FSA
5.250% 06/15/12 1,000,000 1,112,670
OR Portland Limited Tax,
Series B:
(a) 06/01/12 1,750,000 1,361,203
(a) 06/01/13 1,500,000 1,114,755
(a) 06/01/16 3,500,000 2,255,365
(a) 06/01/18 4,000,000 2,339,880
(a) 06/01/19 4,000,000 2,228,440
(a) 06/01/20 4,000,000 2,123,360
96 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
TAX-BACKED - (CONTINUED)
LOCAL GENERAL OBLIGATIONS - (CONTINUED)
OR Rogue Community College,
District, Refunding,
Insured: MBIA:
5.000% 06/15/15 1,015,000 1,130,598
5.000% 06/15/16 1,050,000 1,163,915
5.000% 06/15/17 1,255,000 1,385,721
OR Salem-Keizer,
School District No. 24J,
Insured: FSA
5.000% 06/15/18 2,000,000 2,177,800
OR Tualatin Hills Park &
Recreation District,
Insured: FGIC
5.750% 03/01/14 990,000 1,150,420
OR Washington & Clackamas Counties:
Deferred Interest,
Series A,
(a) 06/01/10 1,520,000 1,276,435
School District No. 23J,
Tigard:
(a) 06/15/18 2,700,000 1,570,914
Insured: MBIA
5.000% 06/15/21 6,575,000 7,388,130
OR Washington County:
5.500% 06/01/16 2,785,000 3,089,512
Criminal Justice Facilities,
Refunding,
5.000% 12/01/10 1,400,000 1,456,168
School District No. 48J,
Beaverton:
5.125% 01/01/14 2,000,000 2,164,860
5.125% 01/01/17 1,820,000 1,965,418
5.125% 01/01/18 2,260,000 2,438,291
OR Washington, Multnomah
& Yamhill Counties,
School District No. 1J,
5.000% 11/01/13 1,100,000 1,216,270
OR Yamhill County:
School District No. 029J,
Series 2005,
Insured: FGIC
5.500% 06/15/21 1,000,000 1,188,550
School District No. 40,
Insured: FGIC
6.000% 06/01/09 500,000 550,875
-----------
Local General Obligations Total 91,731,934
-----------
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
SPECIAL PROPERTY TAX - 6.9%
OR Hood River Urban Renewal
Agency,
6.250% 12/15/11 1,120,000 1,170,590
OR Lebanon Urban Renewal Agency:
5.625% 06/01/19 1,000,000 1,062,940
5.750% 06/01/15 1,120,000 1,180,984
6.000% 06/01/20 1,580,000 1,684,106
OR Medford Urban Renewal,
5.875% 09/01/10 500,000 510,855
OR Portland Airport Way Urban
Renewal & Redevelopment,
Convention Center,
Series A,
Insured: AMBAC:
5.750% 06/15/17 1,500,000 1,675,710
5.750% 06/15/18 2,050,000 2,288,210
OR Portland Limited Tax,
Series A,
3.400% 06/01/13 1,575,000 1,567,692
OR Portland River District Urban
Renewal & Redevelopment,
Series A,
Insured: AMBAC:
5.000% 06/15/17 1,500,000 1,637,190
5.000% 06/15/18 3,070,000 3,348,633
5.000% 06/15/20 2,000,000 2,170,200
OR Portland Urban Renewal
& Redevelopment,
South Park Blocks,
Series A,
Insured: AMBAC:
5.750% 06/15/17 2,065,000 2,306,894
5.750% 06/15/19 2,580,000 2,879,796
OR Redmond Urban Renewal
Agency Revenue, Refunding,
South Airport Industrial Area A,
5.700% 06/01/19 650,000 668,844
OR Redmond Urban Renewal Agency,
Downtown Area B:
5.650% 06/01/13 720,000 751,399
5.850% 06/01/19 785,000 819,634
OR Seaside Urban Renewal Agency,
Greater Seaside Urban Renewal,
5.250% 06/01/15 1,000,000 1,045,610
OR Veneta Urban Renewal Agency,
5.375% 02/15/16 700,000 747,355
5.625% 02/15/21 1,100,000 1,168,915
OR Wilsonville Limited Tax
Improvement,
5.000% 12/01/10 250,000 251,203
-----------
Special Property Tax Total 28,936,760
See Accompanying Notes to Financial Statements. | 97
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
TAX-BACKED - (CONTINUED)
STATE APPROPRIATED - 3.8%
OR Department of Administrative
Services:
Certificates of Participation,
Refunding,
Series A,
Insured: AMBAC:
4.500% 05/01/12 1,020,000 1,067,236
5.000% 05/01/13 4,240,000 4,530,949
5.000% 05/01/14 1,000,000 1,068,620
Series B,
Insured: MBIA
5.250% 05/01/10 840,000 913,685
Series C,
Insured: MBIA:
5.250% 11/01/15 1,000,000 1,096,350
5.250% 11/01/17 5,000,000 5,475,550
Series E,
Insured: FSA
5.000% 11/01/13 1,470,000 1,605,710
-----------
State Appropriated Total 15,758,100
STATE GENERAL OBLIGATIONS - 3.7%
OR Board of Higher Education,
Deferred Interest,
Series A,
(a) 08/01/17 1,050,000 641,340
Series A:
(a) 08/01/14 490,000 345,965
5.000% 08/01/12 2,075,000 2,274,698
5.250% 08/01/14 255,000 279,439
5.250% 08/01/16 780,000 853,226
Series 2004 D,
5.000% 08/01/24 3,620,000 3,891,934
OR Elderly & Disabled Housing,
Refunding,
Series B,
4.950% 08/01/20 985,000 1,014,846
OR State:
9.200% 10/01/08 385,000 453,288
Series A,
5.250% 10/15/15 1,735,000 1,924,878
OR Veterans Welfare:
5.850% 10/01/15 320,000 326,781
8.000% 07/01/08 580,000 656,821
Series 80A,
5.700% 10/01/32 1,950,000 1,952,613
PR Commonwealth of Puerto Rico,
Series A, GO,
5.000% 07/01/30 1,000,000 1,070,950
-----------
State General Obligations Total 15,686,779
-----------
TAX-BACKED TOTAL 154,034,676
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
TRANSPORTATION - 2.5%
AIRPORTS - 0.5%
OR Eugene Airport,
Refunding,
AMT:
5.650% 05/01/07 555,000 573,554
5.700% 05/01/08 515,000 541,337
OR Port of Portland International
Airport,
Series 12B,
Refunding,
Insured: FGIC
5.250% 07/01/12 1,000,000 1,065,420
-----------
Airports Total 2,180,311
PORTS - 0.7%
OR Port Morrow,
6.700% 06/01/20 2,000,000 2,002,800
OR Port of St. Helens:
5.600% 08/01/14 315,000 324,759
5.750% 08/01/19 425,000 439,849
-----------
Ports Total 2,767,408
TRANSPORTATION - 1.3%
OR Tri-County Metropolitan
Transportation District:
Series 1,
5.400% 06/01/19 4,200,000 4,425,876
Series A,
5.000% 09/01/15 1,000,000 1,091,310
-----------
Transportation Total 5,517,186
-----------
TRANSPORTATION TOTAL 10,464,905
UTILITIES - 7.6%
INVESTOR OWNED - 2.1%
OR Port of St. Helens Pollution Control,
Portland General Electric Co.:
Series A,
4.800% 04/01/10 5,195,000 5,321,810
Series B,
4.800% 06/01/10 3,500,000 3,586,940
-----------
Investor Owned Total 8,908,750
98 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
UTILITIES - (CONTINUED)
MUNICIPAL ELECTRIC - 3.2%
OR Emerald Peoples Utility District:
Insured: FGIC:
7.350% 11/01/10 2,160,000 2,569,233
7.350% 11/01/11 2,000,000 2,433,540
7.350% 11/01/12 2,490,000 3,092,829
7.350% 11/01/13 2,675,000 3,387,807
Series A,
Insured: FSA
5.250% 11/01/20 605,000 672,349
OR Eugene Electric Utilities System,
Series B,
Refunding,
Insured: FSA
5.250% 08/01/13 1,040,000 1,139,674
-----------
Municipal Electric Total 13,295,432
WATER & SEWER - 2.3%
OR Myrtle Point Water,
6.000% 12/01/20 510,000 548,000
OR Portland Sewer System Revenue,
Series A,
Refunding,
Insured: FGIC
5.000% 06/01/12 4,835,000 4,989,817
OR Sheridan Water Revenue:
6.200% 05/01/15 625,000 675,181
6.450% 05/01/20 520,000 563,987
Refunding,
5.350% 04/01/18 300,000 311,721
OR Washington County
Housing Authority,
Clean Water Services Sewer,
Series Lien,
Insured: MBIA
5.000% 10/01/13 2,310,000 2,552,920
-----------
Water & Sewer Total 9,641,626
-----------
UTILITIES TOTAL 31,845,808
Total Municipal Bonds
(cost of $386,356,946) 409,090,080
SHARES VALUE ($)
- --------------------------------------------------------------------------
INVESTMENT COMPANY - 0.0%
Dreyfus Tax-Exempt Cash
Management Fund 9,682 9,682
-----------
Total Investment Company
(cost of $9,682) 9,682
SHORT-TERM OBLIGATIONS - 1.1% PAR ($)
VARIABLE RATE DEMAND NOTES (D) - 1.1%
FL Orange County School Board,
Certificates of Participation,
Series 2002 B,
Insured: MBIA
2.300% 08/01/27 100,000 100,000
IA Finance Authority Private
College Revenue,
Series 2003,
LOC: Wells Fargo Bank N.A.
2.320% 07/01/24 400,000 400,000
IA Hills Healthcare Revenue,
Mercy Hospital Project,
Series 2002,
LOC: U.S. Bank N.A.
2.320% 08/01/32 300,000 300,000
KS Development Finance Authority
Revenue,
Hays Medical Center, Series 2000 N,
2.370% 05/15/26 200,000 200,000
MN Brooklyn Center Revenue,
BCC Associates LLC,
Series 2001,
LOC: U.S Bank N.A.
2.370% 12/01/14 300,000 300,000
NY City Municipal Water Finance
Authority, Water & Sewer
Systems Revenue,
Series 1994 G,
SPA: FGIC-SPI
2.250% 06/15/24 400,000 400,000
OR Deschutes Valley Water District,
5.875% 09/01/05 810,000 810,000
SD Health & Educational Facilities
Authority, Rapid City Regional
Hospital,
Series 2003,
Insured: MBIA
2.320% 09/01/27 1,200,000 1,200,000
TX Harris County Health Facilities
Development Corp.,
YMCA-Greater Houston Area,
Series 2002,
2.340% 07/01/37 300,000 300,000
See Accompanying Notes to Financial Statements. | 99
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
SHORT-TERM OBLIGATIONS - (CONTINUED)
VARIABLE RATE DEMAND NOTES (d) - (CONTINUED)
WY Uinta County Pollution Control
Revenue,
Chevron U.S.A. Project, Inc.,
Series 1993,
2.300% 08/15/20 500,000 500,000
-----------
VARIABLE RATE DEMAND NOTES TOTAL 4,510,000
Total Short-Term Obligations
(cost of $4,510,000) 4,510,000
TOTAL INVESTMENTS - 99.0%
(COST OF $390,876,628) (e) 413,609,762
OTHER ASSETS & LIABILITIES, NET - 1.0% 3,987,574
NET ASSETS - 100.0% 417,597,336
NOTES TO INVESTMENT PORTFOLIO:
(a) Zero coupon bond.
(b) Denotes a restricted security, which is subject to registration with the
SEC or is required to be exempted from such registration prior to resale.
At August 31, 2005, the value of this security, which is not illiquid,
represents 0.9% of net assets.
ACQUISITION ACQUISITION
SECURITY DATE COST
-------- ----------- -----------
OR Health, Housing,
Educational & Cultural
Facilities Authority,
Goodwill Industries Lane
County, Series A,
6.650% 11/15/22 06/17/98 $ 3,750,000
-----------
(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) 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 at August 31, 2005.
(e) Cost for federal income tax purposes is $390,758,945.
- --------------------------------------------------------------------------------
NOTES TO INVESTMENT PORTFOLIO (CONTINUED):
At August 31, 2005, the composition of the Fund by revenue source is as
follows:
% OF
HOLDINGS BY REVENUE SOURCE (UNAUDITED) NET ASSETS
--------------------------------------------------------------------
Tax-Backed 36.9%
Other 26.1
Health Care 12.0
Utilities 7.6
Education 5.9
Housing 4.8
Transportation 2.5
Other Revenue 2.1
Investment Company 0.0
Short-Term Obligations 1.1
Other Assets & Liabilities, Net 1.0
-----
100.0%
=====
ACRONYM NAME
------- ----
AMBAC Ambac Assurance Corp.
AMT Alternative Minimum Tax
FGIC Financial Guaranty Insurance Co.
FHA Federal Housing Administration
FSA Financial Security Assurance, Inc.
GO General Obligation
IBC Insured Bond Certificates
MBIA MBIA Insurance Corp.
100 | See Accompanying Notes to Financial Statements.
INVESTMENT PORTFOLIO ___________________________________________________________
AUGUST 31, 2005 COLUMBIA CONSERVATIVE HIGH YIELD FUND
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
CORPORATE FIXED-INCOME BONDS & NOTES - 94.1%
BASIC MATERIALS - 4.4%
CHEMICALS - 2.5%
CHEMICALS-DIVERSIFIED - 0.6%
Equistar Chemicals LP
10.125% 09/01/08 7,370,000 8,116,213
10.625% 05/01/11 880,000 974,600
-----------
9,090,813
CHEMICALS-SPECIALTY - 0.5%
Nalco Co.
7.750% 11/15/11 7,720,000 8,106,000
-----------
8,106,000
INDUSTRIAL-GASES - 1.4%
Airgas, Inc.
6.250% 07/15/14 185,000 188,700
9.125% 10/01/11 19,613,000 21,182,040
-----------
21,370,740
-----------
Chemicals Total 38,567,553
FOREST PRODUCTS & PAPER - 1.1%
PAPER & RELATED PRODUCTS - 1.1%
Boise Cascade LLC
7.125% 10/15/14 17,310,000 16,963,800
-----------
16,963,800
-----------
Forest Products & Paper Total 16,963,800
IRON/STEEL - 0.8%
STEEL-PRODUCERS - 0.8%
Russel Metals, Inc.
6.375% 03/01/14 8,885,000 8,551,812
United States Steel Corp.
9.750% 05/15/10 4,055,000 4,450,363
-----------
13,002,175
-----------
Iron/Steel Total 13,002,175
-----------
BASIC MATERIALS TOTAL 68,533,528
COMMUNICATIONS - 12.9%
ADVERTISING - 2.0%
ADVERTISING SALES - 2.0%
Lamar Media Corp.
7.250% 01/01/13 29,383,000 30,925,608
-----------
30,925,608
-----------
Advertising Total 30,925,608
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
MEDIA - 8.6%
CABLE TV - 4.4%
DirecTV Holdings
6.375% 06/15/15(a) 6,135,000 6,119,663
8.375% 03/15/13 16,182,000 17,759,745
EchoStar DBS Corp.
5.750% 10/01/08 15,125,000 14,973,750
6.625% 10/01/14 8,170,000 8,098,512
Rogers Cable, Inc.
6.250% 06/15/13 9,790,000 9,765,525
7.875% 05/01/12 11,225,000 12,193,156
-----------
68,910,351
MULTIMEDIA - 0.6%
Emmis Operating Co.
6.875% 05/15/12 8,645,000 8,688,225
-----------
8,688,225
PUBLISHING-PERIODICALS - 3.1%
Dex Media West LLC
5.875% 11/15/11 26,043,000 25,522,140
R.H. Donnelley Finance Corp.
10.875% 12/15/12(a) 20,265,000 23,406,075
-----------
48,928,215
TELEVISION - 0.5%
LIN Television Corp.
6.500% 05/15/13 8,250,000 7,878,750
-----------
7,878,750
-----------
Media Total 134,405,541
TELECOMMUNICATIONS - 2.3%
CELLULAR TELECOMMUNICATIONS - 2.3%
Nextel Communications, Inc.
5.950% 03/15/14 275,000 284,969
7.375% 08/01/15 17,975,000 19,390,531
Rogers Wireless, Inc.
7.500% 03/15/15 7,865,000 8,572,850
8.000% 12/15/12 7,475,000 7,998,250
-----------
36,246,600
-----------
Telecommunications Total 36,246,600
-----------
COMMUNICATIONS TOTAL 201,577,749
CONSUMER CYCLICAL - 22.2%
AUTO PARTS & EQUIPMENT - 0.7%
AUTO/TRUCK PARTS & EQUIPMENT-ORIGINAL - 0.7%
Accuride Corp.
8.500% 02/01/15 6,655,000 6,921,200
TRW Automotive, Inc.
9.375% 02/15/13 4,195,000 4,677,425
-----------
11,598,625
-----------
Auto Parts & Equipment Total 11,598,625
See Accompanying Notes to Financial Statements. | 101
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA CONSERVATIVE HIGH YIELD FUND
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED)
CONSUMER CYCLICAL - (CONTINUED)
ENTERTAINMENT - 2.9%
MUSIC - 0.7%
Warner Music Group
7.375% 04/15/14 11,105,000 11,299,338
-----------
11,299,338
RACETRACKS - 1.1%
Speedway Motorsports, Inc.
6.750% 06/01/13 16,983,000 17,577,405
-----------
17,577,405
THEATERS - 1.1%
Cinemark USA, Inc.
9.000% 02/01/13 15,815,000 16,763,900
-----------
16,763,900
-----------
Entertainment Total 45,640,643
HOME BUILDERS - 2.5%
BUILDING-RESIDENTIAL/COMMERCIAL - 2.5%
Beazer Homes USA, Inc.
6.875% 07/15/15(a) 7,800,000 7,673,250
K. Hovnanian Enterprises, Inc.
6.000% 01/15/10 4,865,000 4,755,538
6.375% 12/15/14 4,160,000 4,076,800
6.500% 01/15/14 6,315,000 6,236,062
KB Home
5.875% 01/15/15 5,730,000 5,558,100
7.750% 02/01/10 5,150,000 5,407,500
8.625% 12/15/08 1,665,000 1,798,200
9.500% 02/15/11 2,565,000 2,731,725
-----------
38,237,175
-----------
Home Builders Total 38,237,175
HOME FURNISHINGS - 0.6%
HOME FURNISHINGS - 0.6%
Sealy Mattress Co.
8.250% 06/15/14 8,005,000 8,485,300
-----------
8,485,300
-----------
Home Furnishings Total 8,485,300
LEISURE TIME - 2.5%
CRUISE LINES - 1.9%
Royal Caribbean Cruises Ltd.
6.750% 03/15/08 3,325,000 3,433,063
6.875% 12/01/13 6,275,000 6,682,875
8.750% 02/02/11 17,990,000 20,418,650
-----------
30,534,588
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
LEISURE & RECREATIONAL PRODUCTS - 0.6%
Leslie's Poolmart
7.750% 02/01/13 8,630,000 8,845,750
-----------
8,845,750
-----------
Leisure Time Total 39,380,338
LODGING - 9.2%
CASINO HOTELS - 8.3%
Caesars Entertainment, Inc.
7.875% 03/15/10 16,775,000 18,515,406
8.875% 09/15/08 5,150,000 5,684,313
9.375% 02/15/07 5,875,000 6,234,844
CCM Merger, Inc.
8.000% 08/01/13(a) 7,575,000 7,726,500
Kerzner International Ltd.
8.875% 08/15/11 14,285,000 15,249,237
MGM Mirage
6.000% 10/01/09 27,980,000 27,980,000
8.500% 09/15/10 4,065,000 4,471,500
Station Casinos, Inc.
6.500% 02/01/14 16,120,000 16,442,400
6.875% 03/01/16 13,540,000 13,844,650
Wynn Las Vegas LLC
6.625% 12/01/14 13,830,000 13,432,387
-----------
129,581,237
HOTELS & MOTELS - 0.9%
ITT Corp.
6.750% 11/15/05 800,000 803,000
Starwood Hotels & Resorts Worldwide, Inc.
7.375% 05/01/07 1,300,000 1,347,125
7.875% 05/01/12 11,180,000 12,409,800
-----------
14,559,925
-----------
Lodging Total 144,141,162
RETAIL - 3.8%
RETAIL-AUTOMOBILES - 1.6%
AutoNation, Inc.
9.000% 08/01/08 14,330,000 15,870,475
Group 1 Automotive, Inc.
8.250% 08/15/13 8,045,000 8,246,125
-----------
24,116,600
RETAIL-CONVENIENCE STORE - 1.1%
Couche-Tard US LP
7.500% 12/15/13 16,480,000 17,139,200
-----------
17,139,200
RETAIL-PROPANE DISTRIBUTORS - 0.6%
Suburban Propane Partners
6.875% 12/15/13 9,675,000 9,360,562
-----------
9,360,562
102 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA CONSERVATIVE HIGH YIELD FUND
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED)
CONSUMER CYCLICAL - (CONTINUED)
RETAIL - (CONTINUED)
RETAIL-RESTAURANTS - 0.5%
Domino's, Inc.
8.250% 07/01/11 7,805,000 8,351,350
-----------
8,351,350
-----------
Retail Total 58,967,712
-----------
CONSUMER CYCLICAL TOTAL 346,450,955
CONSUMER NON-CYCLICAL - 17.9%
BEVERAGES - 3.7%
BEVERAGES-NON-ALCOHOLIC - 2.0%
Cott Beverages, Inc.
8.000% 12/15/11 29,625,000 31,180,312
-----------
31,180,312
BEVERAGES-WINE/SPIRITS - 1.7%
Constellation Brands, Inc.
8.000% 02/15/08 3,850,000 4,052,125
8.125% 01/15/12 17,585,000 18,706,044
8.625% 08/01/06 3,100,000 3,200,750
-----------
25,958,919
-----------
Beverages Total 57,139,231
COMMERCIAL SERVICES - 4.7%
COMMERCIAL SERVICES - 2.2%
Iron Mountain, Inc.
7.750% 01/15/15 7,450,000 7,636,250
8.625% 04/01/13 17,140,000 17,997,000
Mac-Gray Corp.
7.625% 08/15/15(a) 7,825,000 8,079,312
-----------
33,712,562
FUNERAL SERVICES & RELATED ITEMS - 0.5%
Stewart Enterprises, Inc.
6.250% 02/15/13(a) 8,105,000 7,821,325
-----------
7,821,325
PRIVATE CORRECTIONS - 1.5%
Corrections Corp. of America
6.250% 03/15/13 595,000 587,563
7.500% 05/01/11 22,655,000 23,334,650
-----------
23,922,213
RENTAL AUTO/EQUIPMENT - 0.5%
United Rentals, Inc.
7.000% 02/15/14 7,100,000 6,709,500
7.750% 11/15/13 845,000 823,875
-----------
7,533,375
-----------
Commercial Services Total 72,989,475
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
FOOD - 0.5%
FOOD-MISCELLANEOUS/DIVERSIFIED - 0.5%
Del Monte Corp.
6.750% 02/15/15(a) 7,705,000 7,859,100
-----------
7,859,100
-----------
Food Total 7,859,100
HEALTHCARE SERVICES - 6.4%
MEDICAL-HMO - 1.0%
Coventry Health Care, Inc.
5.875% 01/15/12 15,540,000 15,928,500
-----------
15,928,500
MEDICAL-HOSPITALS - 3.4%
Community Health Systems, Inc.
6.500% 12/15/12 2,550,000 2,581,875
HCA, Inc.
6.950% 05/01/12 29,545,000 31,149,884
Triad Hospitals, Inc.
7.000% 05/15/12 14,903,000 15,424,605
7.000% 11/15/13 3,875,000 3,981,563
-----------
53,137,927
MEDICAL-NURSING HOMES - 0.5%
Extendicare Health Services, Inc.
6.875% 05/01/14 7,125,000 7,018,125
9.500% 07/01/10 1,280,000 1,353,600
-----------
8,371,725
MEDICAL-OUTPATIENT/HOME MEDICAL - 0.5%
Select Medical Corp.
7.625% 02/01/15 8,595,000 8,358,638
-----------
8,358,638
MEDICAL PRODUCTS - 1.0%
Fisher Scientific International, Inc.
6.750% 08/15/14 14,360,000 15,006,200
-----------
15,006,200
-----------
Healthcare Services Total 100,802,990
HOUSEHOLD PRODUCTS/WARES - 1.4%
CONSUMER PRODUCTS-MISCELLANEOUS - 1.4%
Scotts Co.
6.625% 11/15/13 21,530,000 22,175,900
-----------
22,175,900
-----------
Household Products/Wares Total 22,175,900
PHARMACEUTICALS - 1.2%
MEDICAL-WHOLESALE DRUG DISTRIBUTION - 0.7%
AmerisourceBergen Corp.
8.125% 09/01/08 9,610,000 10,522,950
-----------
10,522,950
See Accompanying Notes to Financial Statements. | 103
- --------------------------------------------------------------------------------
AUGUST 31, 2005 COLUMBIA CONSERVATIVE HIGH YIELD FUND
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED)
CONSUMER NON-CYCLICAL - (CONTINUED)
PHARMACEUTICALS - (CONTINUED)
PHARMACY SERVICES - 0.5%
Omnicare, Inc.
6.125% 06/01/13 1,680,000 1,650,600
Series B,
8.125% 03/15/11 6,470,000 6,761,150
-----------
8,411,750
-----------
Pharmaceuticals Total 18,934,700
-----------
CONSUMER NON-CYCLICAL TOTAL 279,901,396
ENERGY - 14.4%
COAL - 3.6%
COAL - 3.6%
Arch Western Finance LLC
6.750% 07/01/13 24,790,000 25,347,775
Peabody Energy Corp.
5.875% 04/15/16 2,775,000 2,747,250
6.875% 03/15/13 26,710,000 27,845,175
-----------
55,940,200
-----------
Coal Total 55,940,200
OIL & GAS - 6.2%
OIL & GAS DRILLING - 0.5%
Pride International, Inc.
7.375% 07/15/14 7,225,000 7,803,000
-----------
7,803,000
OIL COMPANIES-EXPLORATION & PRODUCTION - 5.7%
Chesapeake Energy Corp.
6.375% 06/15/15 18,735,000 19,062,862
7.500% 09/15/13 10,195,000 10,985,113
7.750% 01/15/15 425,000 457,938
Newfield Exploration Co.
6.625% 09/01/14 19,255,000 20,121,475
Plains Exploration & Production Co.
7.125% 06/15/14 13,265,000 14,160,387
Pogo Producing Co.
6.625% 03/15/15(a) 7,050,000 7,261,500
8.250% 04/15/11 3,080,000 3,249,400
Vintage Petroleum, Inc.
7.875% 05/15/11 7,125,000 7,481,250
8.250% 05/01/12 6,025,000 6,476,875
-----------
89,256,800
-----------
Oil & Gas Total 97,059,800
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
OIL & GAS SERVICES - 2.6%
OIL-FIELD SERVICES - 1.8%
Hornbeck Offshore Services, Inc.
Series B,
6.125% 12/01/14 9,975,000 9,999,938
Universal Compression, Inc.
7.250% 05/15/10 16,245,000 16,976,025
-----------
26,975,963
OIL FIELD MACHINERY & EQUIPMENT - 0.8%
Grant Prideco, Inc.
6.125% 08/15/15(a) 12,725,000 12,884,062
-----------
12,884,062
-----------
Oil & Gas Services Total 39,860,025
PIPELINES - 2.0%
PIPELINES - 2.0%
MarkWest Energy Partners LP
6.875% 11/01/14(a) 8,725,000 8,790,437
Williams Companies, Inc.
7.125% 09/01/11 4,870,000 5,162,200
8.125% 03/15/12 16,220,000 18,085,300
-----------
32,037,937
-----------
Pipelines Total 32,037,937
-----------
ENERGY TOTAL 224,897,962
FINANCIALS - 1.1%
REAL ESTATE INVESTMENT TRUSTS - 1.1%
REITS-DIVERSIFIED - 0.5%
iStar Financial, Inc.
Series B,
5.125% 04/01/11 7,350,000 7,327,068
7.000% 03/15/08 250,000 262,708
-----------
7,589,776
REITS-HOTELS - 0.6%
Host Marriott LP
6.375% 03/15/15 8,775,000 8,753,062
-----------
8,753,062
-----------
Real Estate Investment Trusts Total 16,342,838
-----------
FINANCIALS TOTAL 16,342,838
INDUSTRIALS - 16.4%
AEROSPACE & DEFENSE - 3.1%
AEROSPACE/DEFENSE-EQUIPMENT - 1.1%
TransDigm, Inc.
8.375% 07/15/11 15,710,000 16,613,325
-----------
16,613,325
104 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA CONSERVATIVE HIGH YIELD FUND
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED)
INDUSTRIALS - (CONTINUED)
AEROSPACE & DEFENSE - (CONTINUED)
ELECTRONICS-MILITARY - 2.0%
L-3 Communications Corp.
5.875% 01/15/15 3,000,000 2,940,000
6.125% 07/15/13 1,855,000 1,873,550
6.375% 10/15/15(a) 11,515,000 11,716,513
7.625% 06/15/12 14,075,000 14,919,500
-----------
31,449,563
-----------
Aerospace & Defense Total 48,062,888
ENVIRONMENTAL CONTROL - 1.0%
NON-HAZARDOUS WASTE DISPOSAL - 1.0%
Allied Waste North America, Inc.
6.375% 04/15/11 7,600,000 7,315,000
6.500% 11/15/10 7,875,000 7,717,500
Series B,
9.250% 09/01/12 1,383,000 1,504,013
-----------
16,536,513
-----------
Environmental Control Total 16,536,513
HAND/MACHINE TOOLS - 1.0%
MACHINE TOOLS & RELATED PRODUCTS - 1.0%
Kennametal, Inc.
7.200% 06/15/12 14,345,000 15,888,665
-----------
15,888,665
-----------
Hand/Machine Tools Total 15,888,665
MACHINERY-DIVERSIFIED - 1.6%
MACHINERY-GENERAL INDUSTRY - 1.6%
Manitowoc Co., Inc.
7.125% 11/01/13 7,365,000 7,687,219
Westinghouse Air Brake
Technologies Corp.
6.875% 07/31/13 16,475,000 17,051,625
-----------
24,738,844
-----------
Machinery-Diversified Total 24,738,844
PACKAGING & CONTAINERS - 6.2%
CONTAINERS-METAL/GLASS - 4.9%
Ball Corp.
6.875% 12/15/12 29,047,000 30,208,880
7.750% 08/01/06 850,000 869,125
Owens-Brockway Glass Container, Inc.
6.750% 12/01/14 3,875,000 3,865,313
8.875% 02/15/09 7,225,000 7,640,437
Owens-Illinois, Inc.
7.500% 05/15/10 11,000,000 11,385,000
Silgan Holdings, Inc.
6.750% 11/15/13 22,380,000 22,855,575
-----------
76,824,330
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
CONTAINERS-PAPER/PLASTIC - 1.3%
Jefferson Smurfit Corp.
8.250% 10/01/12 3,745,000 3,716,913
Smurfit-Stone Container Corp.
8.375% 07/01/12 5,185,000 5,172,037
9.750% 02/01/11 5,425,000 5,655,562
Stone Container Finance
7.375% 07/15/14 5,540,000 5,249,150
-----------
19,793,662
-----------
Packaging & Containers Total 96,617,992
TRANSPORTATION - 3.5%
TRANSPORTATION-MARINE - 2.4%
Overseas Shipholding Group
8.250% 03/15/13 8,925,000 9,594,375
Teekay Shipping Corp.
8.875% 07/15/11 24,286,000 27,837,827
-----------
37,432,202
TRANSPORTATION-SERVICES - 1.1%
Offshore Logistics, Inc.
6.125% 06/15/13 17,800,000 17,444,000
-----------
17,444,000
-----------
Transportation Total 54,876,202
-----------
INDUSTRIALS TOTAL 256,721,104
TECHNOLOGY - 1.1%
SEMICONDUCTORS - 1.1%
ELECTRONIC COMPONENTS-SEMICONDUCTORS - 1.1%
Freescale Semiconductor, Inc.
6.875% 07/15/11 16,380,000 17,199,000
-----------
17,199,000
-----------
Semiconductors Total 17,199,000
-----------
TECHNOLOGY TOTAL 17,199,000
UTILITIES - 3.7%
ELECTRIC - 3.7%
ELECTRIC-GENERATION - 2.2%
AES Corp.
7.750% 03/01/14 18,190,000 19,690,675
Texas Genco LLC
6.875% 12/15/14(a) 15,040,000 15,641,600
-----------
35,332,275
ELECTRIC-INTEGRATED - 1.5%
Nevada Power Co.
5.875% 01/15/15(a) 5,000,000 5,025,000
6.500% 04/15/12 3,950,000 4,068,500
NorthWestern Corp.
5.875% 11/01/14(a) 975,000 999,375
See Accompanying Notes to Financial Statements. | 105
- --------------------------------------------------------------------------------
AUGUST 31, 2005 COLUMBIA CONSERVATIVE HIGH YIELD FUND
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED)
UTILITIES - (CONTINUED)
ELECTRIC - (CONTINUED)
ELECTRIC-INTEGRATED - (CONTINUED)
TECO Energy, Inc.
6.750% 05/01/15(a) 6,320,000 6,722,900
7.000% 05/01/12 5,675,000 6,100,625
-------------
22,916,400
-------------
Electric Total 58,248,675
-------------
UTILITIES TOTAL 58,248,675
Total Corporate Fixed-Income Bonds & Notes
(cost of $1,453,717,495) 1,469,873,207
SHORT-TERM OBLIGATION - 4.6%
Repurchase agreement with State Street
Bank & Trust Co., dated 08/31/05, due
09/01/05 at 3.430%, collateralized by a
U.S. Treasury Note maturing 09/30/06,
market value of $72,810,191
(repurchase proceeds $71,388,801) 71,382,000 71,382,000
-------------
Total Short-Term Obligation
(cost of $71,382,000) 71,382,000
TOTAL INVESTMENTS - 98.7%
(COST OF $1,525,099,495)(b) 1,541,255,207
OTHER ASSETS & LIABILITIES, NET - 1.3% 19,883,991
NET ASSETS - 100.0% 1,561,139,198
- --------------------------------------------------------------------------
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
August 31, 2005, these securities, which did not include any illiquid
securities, amounted to $137,726,612, which represents 8.8% of net assets.
(b) Cost for federal income tax purposes is $1,532,722,474.
At August 31, 2005, the asset allocation of the Fund is as follows:
% OF
ASSET ALLOCATION (UNAUDITED) NET ASSETS
--------------------------------------------------------------------
Corporate Fixed-Income Bonds & Notes 94.1%
Short-Term Obligation 4.6
Other Assets & Liabilities, Net 1.3
-----
100.0%
=====
ACRONYM NAME
------- ----
REIT Real Estate Investment Trust
106 | See Accompanying Notes to Financial Statements.
INVESTMENT PORTFOLIO ___________________________________________________________
AUGUST 31, 2005 COLUMBIA DAILY INCOME COMPANY
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
COMMERCIAL PAPER - 42.7%
Amstel Funding Corp.
3.250% 10/18/05 (a) 3,000,000 2,987,271
Atlantis One Funding Corp.
3.200% 09/19/05 (a) 10,000,000 9,984,000
Cancara Asset Securitisation LLC
3.250% 09/01/05 (a) 5,000,000 5,000,000
Charta Corp.
3.760% 11/21/05 (a) 9,000,000 8,923,860
Concord Minutemen Capital Co.
3.300% 10/18/05 (c) 5,000,000 4,978,458
3.330% 10/20/05 (c) 5,000,000 4,977,338
CRC Funding LLC.
3.730% 11/21/05 (a) 5,000,000 4,958,038
Crown Point Capital Co.
3.680% 01/12/06 (c) 5,000,000 4,932,022
Galaxy Funding, Inc.
3.280% 09/06/05 (a) 10,000,000 9,995,444
Georgetown Funding Co. LLC
3.510% 09/22/05 (a) 5,000,000 4,989,763
Giro Balanced Funding Corp.
3.200% 09/23/05 (a) 6,000,000 5,988,267
Grampian Funding LLC
3.130% 09/09/05 (a) 10,000,000 9,993,044
3.450% 10/04/05 (a) 6,000,000 5,981,025
3.920% 02/17/06 (a) 4,000,000 3,926,391
Ivory Funding Corp.
3.290% 09/12/05 (a) 7,132,000 7,124,830
Lexington Parker Capital Corp.
3.410% 09/21/05 (a) 4,326,000 4,317,805
3.900% 02/15/06 (a) 5,000,000 4,909,542
Mane Funding Corp.
3.750% 11/21/05 (a) 15,000,000 14,873,437
Millstone Funding Corp.
3.610% 09/23/05 (a) 2,000,000 1,995,588
Picaros Funding LLC
3.540% 11/08/05 (a) 4,000,000 3,973,253
3.920% 02/17/06 (a) 3,000,000 2,944,793
Premier Asset Collateralized
Entity LLC
3.290% 09/01/05 (c) 5,000,000 5,000,000
3.250% 09/01/05 (c) 2,500,000 2,500,000
Scaldis Capital LLC
3.300% 10/21/05 (a) 3,883,000 3,865,203
3.360% 11/10/05 (a) 8,839,000 8,781,252
3.470% 10/11/05 (a) 5,000,000 4,980,722
3.730% 11/21/05 (a) 2,000,000 1,983,215
Sedna Finance, Inc.
3.760% 11/23/05 (c) 5,000,000 4,956,656
Sigma Finance, Inc.
3.365% 11/22/05 (c) 5,000,000 4,961,676
Solitaire Funding LLC
3.370% 09/22/05 (a) 10,000,000 9,980,342
3.420% 09/30/05 (a) 6,000,000 5,983,470
Stanfield Victoria Funding LLC
3.510% 10/31/05 (c) 5,000,000 4,970,750
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
Sunbelt Funding Corp.
3.560% 09/19/05 (a) 20,534,000 20,497,449
Surrey Funding Corp.
3.330% 09/16/05 (a) 2,000,000 1,997,225
-----------
Total Commercial Paper
(cost of $208,212,129) 208,212,129
CORPORATE FIXED-INCOME BONDS & NOTES - 39.2%
CONSUMER NON-CYCLICAL - 1.0%
PHARMACEUTICALS - 1.0%
Pfizer, Inc.
3.660% 11/04/05 (b) 5,000,000 4,997,750
-----------
Pharmaceuticals Total 4,997,750
-----------
CONSUMER NON-CYCLICAL TOTAL 4,997,750
FINANCIALS - 38.2%
COMMERCIAL BANKS - 3.9%
US Bank NA
3.757% 02/17/06 (b) 9,000,000 8,999,967
Wells Fargo & Co.
3.510% 09/29/05 (b) 10,000,000 10,000,441
-----------
Commercial Banks Total 19,000,408
DIVERSIFIED FINANCIAL SERVICES - 34.3%
1800 Indian Wood Ltd.
LOC: Fifth Third Bank
3.640% 04/01/26 (b) 1,000,000 1,000,000
500 Thomas Moore Building LLC
LOC: Fifth Third Bank
3.640% 06/01/22 (b) 1,000,000 1,000,000
Absom LLC
LOC: Fifth Third Bank
3.700% 06/01/15 (b) 2,110,000 2,110,000
Al-Fe Heat Treating, Inc.
LOC: National City
Bank of Indiana
3.710% 05/01/21 (b) 3,000,000 3,000,000
American Made LLC
LOC: National City Bank
3.660% 12/01/24 (b) 6,045,000 6,045,000
Beckfield Properties LLC
LOC: Fifth Third Bank
3.640% 12/01/24 (b) 1,000,000 1,000,000
Beta Finance, Inc.
3.315% 06/13/06 (b)(c) 10,000,000 9,999,509
Bleach Tech/LDJ Seville
LOC: National City Bank
3.660% 11/01/35 (b) 5,120,000 5,120,000
See Accompanying Notes to Financial Statements. | 107
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA DAILY INCOME COMPANY
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED)
FINANCIALS - (CONTINUED)
DIVERSIFIED FINANCIAL SERVICES - (CONTINUED)
CC USA, Inc.
3.310% 12/02/05 (b)(c) 5,000,000 4,999,653
Central Avenue Properties Ltd.
LOC: Fifth Third Bank
3.640% 11/01/23 (b) 1,225,000 1,225,000
Central Supply Co.
LOC: Fifth Third Bank
3.640% 08/01/23 (b) 3,865,000 3,865,000
Chagrin Valley Partners LLC
LOC: Fifth Third Bank
3.640% 11/01/13 (b) 1,080,000 1,080,000
DiGerinomo Aggregates
LOC: National City Bank
3.660% 01/01/15 (b) 5,395,000 5,395,000
Elder Land Development Corp.
LOC: Fifth Third Bank
3.640% 09/01/23 (b) 1,720,000 1,720,000
Encore Commercial
Development LLC
LOC: Fifth Third Bank
3.640% 06/01/23 (b) 1,510,000 1,510,000
Falls Village Realty LLC
LOC: Fifth Third Bank
3.640% 12/01/29 (b) 3,000,000 3,000,000
Fresh Unlimited, Inc.
LOC: Fifth Third Bank
3.640% 11/01/44 (b) 1,000,000 1,000,000
Grand Rapids Christian School
LOC: Fifth Third Bank
3.640% 09/01/28 (b) 4,120,000 4,120,000
Harlan Development Co.
LOC: Fifth Third Bank
3.640% 12/01/23 (b) 4,952,500 4,952,500
3.640% 12/01/23 (b) 2,505,350 2,505,350
Harrier Finance Funding LLC
3.610% 10/25/05 (b)(c) 10,000,000 10,000,000
Holten Meat, Inc.
LOC: US Bank NA
3.610% 05/01/25 (b) 6,370,000 6,370,000
Keating Muething & Klekamp
LOC: Fifth Third Bank
3.640% 11/01/24 (b) 1,000,000 1,000,000
LRC Meadows Investors LLC
LOC: JP Morgan Chase Bank
3.690% 12/01/34 (b) 1,300,000 1,300,000
LTC Investors LLC
LOC: National City Bank
3.640% 11/01/24 (b) 2,320,000 2,320,000
MRN New Gar Hotel Ltd.
LOC: US Bank NA
3.660% 10/01/13 (b) 3,855,000 3,855,000
Palms at Brentwood LLC
LOC: Amsouth Bank
3.640% 12/01/34 (b) 11,000,000 11,000,000
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
Seventh Avenue Associates
LOC: National City Bank
3.660% 01/01/27 (b) 6,190,000 6,190,000
Sigma Finance, Inc.
4.000% 08/11/06 (b)(c) 8,000,000 7,992,975
Skeletal Properties LLC
LOC: Fifth Third Bank
3.640% 06/01/34 (b) 1,000,000 1,000,000
Spartan Medical Facility
LOC: Fifth Third Bank
3.640% 12/01/26 (b) 1,500,000 1,500,000
Sumner Medical Plaza LLC
LOC: Fifth Third Bank
3.640% 10/01/10 (b) 3,470,000 3,470,000
Tango Finance Corp.
3.588% 01/17/06 (b)(c) 10,000,000 10,000,480
Titan Holdings Group LLC
LOC: Fifth Third Bank
3.640% 05/01/12 (b) 1,350,000 1,350,000
Union Hospital, Inc.
LOC: Fifth Third Bank
3.640% 09/01/25 (b) 2,150,000 2,150,000
Vancouver Clinic Building LLC
LOC: US Bank NA
3.610% 02/01/25 (b) 5,000,000 5,000,000
Whistlejacket Capital Ltd.
3.531% 10/14/05 (b)(c) 5,000,000 4,999,798
3.570% 05/15/06 (b)(c) 8,000,000 7,999,437
White Pine Finance LLC
3.315% 09/07/05 (b)(c) 10,000,000 9,999,935
3.580% 04/20/06 (b)(c) 5,000,000 4,999,532
-----------
Diversified Financial Services Total 167,144,169
-----------
FINANCIALS TOTAL 186,144,577
Total Corporate Fixed-Income Bonds & Notes
(cost of $191,142,327) 191,142,327
MUNICIPAL BONDS - 12.3%
CALIFORNIA - 3.8%
CA Educational Facilities
Authority Revenue,
University Judaism, Series B,
LOC: Allied Irish Bank
3.660% 12/01/28 (b) 6,000,000 6,000,000
CA San Diego Metropolitan
Transportation Development
Board, Pension Obligation
Revenue, Series B,
Insured: MBIA,
SPA: Dexia Credit Local
3.570% 12/01/33 (b) 12,595,000 12,595,000
-----------
CALIFORNIA TOTAL 18,595,000
108 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA DAILY INCOME COMPANY
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
FLORIDA - 0.2%
FL Housing Finance Corp. Revenue,
Waterford Pointe,
Series E-2,
LOC: FNMA
3.660% 02/15/33 (b) 1,150,000 1,150,000
-----------
FLORIDA TOTAL 1,150,000
GEORGIA - 0.2%
GA Burke County Industrial
Development Authority Revenue,
Fleetguard, Inc. Project,
Series 2003,
LOC: Fifth Third Bank
3.640% 08/01/18 (b) 925,000 925,000
-----------
GEORGIA TOTAL 925,000
INDIANA - 0.2%
IN Industrial Development
Authority Revenue,
Lawrence Utilities,
Series 2003 B,
LOC: Fifth Third Bank
3.660% 07/01/23 (b) 1,000,000
-----------
INDIANA TOTAL 1,000,000
KENTUCKY - 0.3%
KY Henderson Regional Industrial
Development Authority Revenue,
LOC: Fifth Third Bank
3.640% 07/01/23 (b) 1,670,000 1,670,000
-----------
KENTUCKY TOTAL 1,670,000
MARYLAND - 2.8%
MD Baltimore Project Revenue,
Baltimore Parking Facilities,
Series 2002,
Insured: FGIC
SPA: Dexia Credit Local
3.670% 07/01/32 (b) 13,555,000 13,555,000
-----------
MARYLAND TOTAL 13,555,000
PENNSYLVANIA - 2.8%
PA Donegal Crossing LLC,
LOC: Federal Home Loan Bank
3.610% 08/15/27 (b) 13,380,000 13,380,000
-----------
PENNSYLVANIA TOTAL 13,380,000
PAR ($) VALUE ($)
- --------------------------------------------------------------------------
TEXAS - 2.0%
TX Harris County Houston Texas
Sports Authority Special Revenue,
Series E,
Insured: MBIA,
SPA: JPMorgan Chase Bank
3.590% 11/15/30 (b) 9,600,000 9,600,000
-----------
TEXAS TOTAL 9,600,000
Total Municipal Bonds
(cost of $59,875,000) 59,875,000
GOVERNMENT AGENCIES & OBLIGATIONS - 4.1%
U.S. GOVERNMENT AGENCY - 4.1%
Federal National Mortgage
Association
3.386% 10/03/05 (b) 20,000,000 19,998,483
-----------
U.S. GOVERNMENT AGENCY TOTAL 19,998,483
Total Government Agencies & Obligations
(cost of $19,998,483) 19,998,483
CERTIFICATES OF DEPOSIT - 2.6%
Barclays Bank PLC
3.552% 06/21/06 (b) 5,000,000 4,999,500
CS First Boston
3.500% 12/29/05 (b) 8,000,000 8,001,640
-----------
Total Certificates of Deposit
(cost of $13,001,140) 13,001,140
REPURCHASE AGREEMENT - 0.1%
Repurchase agreement with State Street
Bank & Trust Co., dated 08/31/05, due
09/01/05 at 3.470%, collateralized by a
U.S. Government Agency Obligation
maturing 06/02/06, market value of
$370,925 (repurchase proceeds
$361,035) 361,000 361,000
-----------
Total Repurchase Agreement
(cost of $361,000) 361,000
TOTAL INVESTMENTS - 101.0%
(COST OF $492,590,079) (d) 492,590,079
OTHER ASSETS & LIABILITIES, NET - (1.0)% (4,766,493)
NET ASSETS - 100.0% 487,823,586
See Accompanying Notes to Financial Statements. | 109
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA DAILY INCOME COMPANY
- --------------------------------------------------------------------------------
NOTES TO INVESTMENT PORTFOLIO:
(a) Security exempt from registration under Section 4(2) of the Securities Act
of 1933. These securities may only be resold in exempt transactions to
qualified buyers. Private resales of these securities to qualified
institutional buyers are also exempt from registration pursuant to Rule
144A under the Securities Act of 1933. At August 31, 2005, these
securities amounted to $170,935,229, which represents 35.0% of net assets.
(b) The interest rate shown on floating rate or variable rate securities
reflects the rate at August 31, 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
August 31, 2005, these securities, which did not include any illiquid
securities, amounted to $108,268,219, which represents 22.2% of net
assets.
(d) Cost for federal income tax purposes is $492,590,079.
ACRONYM NAME
------- -----
FGIC Financial Guaranty Insurance Co.
FNMA Federal National Mortgage Association
LOC Letter of Credit/Line of Credit
MBIA MBIA Insurance Corp.
SPA Stand-by Purchase Agreement
110 | See Accompanying Notes to Financial Statements.
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STATEMENTS OF ASSETS AND LIABILITIES ___________________________________________
AUGUST 31, 2005 COLUMBIA FUNDS
INTERNATIONAL MID CAP SMALL CAP REAL ESTATE
STOCK GROWTH GROWTH EQUITY TECHNOLOGY
FUND (a) ($) FUND ($) FUND I ($) FUND ($) FUND ($)
- ----------------------------------------------------------------------------------------------------------------------------------
ASSETS
Unaffiliated investments, at identified cost
(including short-term obligations) 896,152,988 693,361,700 177,285,285 476,443,652 50,747,901
Affiliated investments, at identified cost -- -- -- -- --
-------------- ----------- ----------- ------------ -----------
Total investments, at identified cost 896,152,988 693,361,700 177,285,285 476,443,652 50,747,901
-------------- ----------- ----------- ------------ -----------
Unaffiliated investments, at value 1,039,047,663 835,116,901 210,409,313 804,934,973 60,181,183
Affiliated investments, at value -- -- -- -- --
Repurchase agreement 14,205,000 1,402,000 4,362,000 23,520,000 948,000
-------------- ----------- ----------- ------------ -----------
Total investments, at value 1,053,252,663 836,518,901 214,771,313 828,454,973 61,129,183
Cash 644 940 43 609 52,478
Cash at broker -- -- -- -- --
Foreign currency
(cost of $819,307, $1,496 and $74, respectively) 818,468 1,555 -- -- --
Receivable for:
Investments sold 7,960,703 9,157,360 3,641,961 -- 2,335,740
Capital stock sold 94,911 130,578 234,368 636,266 291,573
Interest 1,353 134 416 2,241 90
Dividends 2,286,150 334,154 6,862 286,162 10,398
Foreign tax reclaim 634,554 -- -- -- 286
Expense reimbursement due from Investment Advisor 2,835 -- 2,548 -- --
Deferred compensation plan 35,549 19,957 5,126 7,419 2,589
Other assets -- 410 -- 5,365 --
-------------- ----------- ----------- ------------ -----------
Total assets 1,065,087,830 846,163,989 218,662,637 829,393,035 63,822,337
- ----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable to custodian bank -- -- -- -- --
Payable for:
Investments purchased 9,703,944 2,513,948 3,437,075 -- 2,805,114
Capital stock redeemed 905,537 1,078,970 301,653 1,229,915 84,348
Written options, at value (premium of $3,680) -- -- -- -- 6,600
Futures variation margin -- -- -- -- --
Distributions -- -- -- -- --
Investment advisory fee 751,903 563,819 162,070 531,202 43,602
Transfer agent fee 65,103 82,666 39,502 110,086 18,115
Pricing and bookkeeping fees 15,231 13,445 8,301 13,184 4,911
Merger costs -- -- -- -- --
Directors' fees 839 589 139 589 314
Audit fee 30,898 30,738 29,008 23,508 21,301
Service and distribution fees 30,060 15,132 -- 29,609 7,483
Custody fee 44,234 2,558 1,342 1,758 1,434
Legal fee 6,302 6,200 2,124 6,631 500
Registration fees -- -- -- -- 26
Reports to shareholders 46,540 68,148 15,692 55,059 564
Chief compliance officer expenses and fees 1,452 1,220 683 1,248 537
Deferred compensation plan 35,549 19,957 5,126 7,419 2,589
Other liabilities 1,215 2,599 1,148 2,407 4,313
-------------- ----------- ----------- ------------ -----------
Total liabilities 11,638,807 4,399,989 4,003,863 2,012,615 3,001,751
NET ASSETS 1,053,449,023 841,764,000 214,658,774 827,380,420 60,820,586
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF
Paid-in capital 1,021,468,201 709,984,046 175,303,000 399,677,508 47,513,024
Undistributed (overdistributed) net investment income 11,591,579 -- -- (4,839) --
Accumulated net investment loss -- (11,999) -- -- (10,877)
Accumulated net realized gain (loss) (136,718,194) (11,365,307) 1,869,746 75,696,430 2,940,077
Unrealized appreciation (depreciation) on:
Investments 157,099,675 143,157,201 37,486,028 352,011,321 10,381,282
Foreign currency translations 7,762 59 -- -- --
Futures contracts -- -- -- -- --
Written options -- -- -- -- (2,920)
-------------- ----------- ----------- ------------ -----------
NET ASSETS 1,053,449,023 841,764,000 214,658,774 827,380,420 60,820,586
FIXED
STRATEGIC SHORT TERM INCOME
INVESTOR BALANCED BOND SECURITIES
FUND ($) FUND ($) FUND ($) FUND ($)
- --------------------------------------------------------------------------------------------------------------------
ASSETS
Unaffiliated investments, at identified cost
(including short-term obligations) 434,797,082 294,462,579 421,793,972 241,601,656
Affiliated investments, at identified cost -- -- 1,523,251 --
-------------- ----------- ----------- ------------
Total investments, at identified cost 434,797,082 294,462,579 423,317,223 241,601,656
-------------- ----------- ----------- ------------
Unaffiliated investments, at value 400,972,529 305,332,476 413,448,148 241,398,186
Affiliated investments, at value -- -- 1,496,161 --
Repurchase agreement 128,038,000 8,699,000 6,291,000 3,858,000
-------------- ----------- ----------- ------------
Total investments, at value 529,010,529 314,031,476 421,235,309 245,256,186
Cash 214,311 -- 258 287
Cash at broker -- 16,000 -- --
Foreign currency
(cost of $819,307, $1,496 and $74, respectively) 74 -- -- --
Receivable for:
Investments sold 4,119,112 6,253,031 -- 4,254,753
Capital stock sold 1,270,011 113,473 162,827 275,893
Interest 12,200 950,509 2,919,658 1,878,130
Dividends 490,004 197,882 -- --
Foreign tax reclaim 19,634 793 -- --
Expense reimbursement due from Investment Advisor -- -- -- --
Deferred compensation plan 15,378 5,011 13,907 4,861
Other assets 274 -- -- --
-------------- ----------- ----------- ------------
Total assets 535,151,527 321,568,175 424,331,959 251,670,110
- --------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable to custodian bank -- 15,073 -- --
Payable for:
Investments purchased 8,018,142 5,769,044 19,052 773,544
Capital stock redeemed 699,846 1,530,291 440,775 831,651
Written options, at value (premium of $3,680) -- -- -- --
Futures variation margin -- 14,639 94,106 15,720
Distributions -- -- 894,334 82,984
Investment advisory fee 329,884 142,599 147,594 109,631
Transfer agent fee 69,181 86,961 38,071 79,226
Pricing and bookkeeping fees 15,379 13,915 6,774 12,875
Merger costs -- -- 43,439 82,310
Directors' fees 339 2,487 -- 865
Audit fee 28,468 34,797 31,470 33,699
Service and distribution fees 107,879 9,260 35,936 9,234
Custody fee 4,515 1,972 933 2,172
Legal fee 3,440 -- 3,000 4,000
Registration fees -- -- 11,922 --
Reports to shareholders 39,360 22,253 26,876 31,941
Chief compliance officer expenses and fees 948 804 919 738
Deferred compensation plan 15,378 5,011 13,907 4,861
Other liabilities 1,709 10,946 7,860 1,514
-------------- ----------- ----------- ------------
Total liabilities 9,334,468 7,660,052 1,816,968 2,076,965
NET ASSETS 525,817,059 313,908,123 422,514,991 249,593,145
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF
Paid-in capital 402,801,205 324,089,439 427,251,031 245,429,773
Undistributed (overdistributed) net investment income 2,283,811 811,316 320,679 (304,997)
Accumulated net investment loss -- -- -- --
Accumulated net realized gain (loss) 26,516,389 (30,556,060) (2,939,649) 813,839
Unrealized appreciation (depreciation) on:
Investments 94,213,447 19,568,897 (2,081,914) 3,654,530
Foreign currency translations 2,207 -- -- --
Futures contracts -- (5,469) (35,156) --
Written options -- -- -- --
-------------- ----------- ----------- ------------
NET ASSETS 525,817,059 313,908,123 422,514,991 249,593,145
OREGON
INTERMEDIATE
MUNICIPAL CONSERVATIVE DAILY
BOND HIGH YIELD INCOME
FUND ($) FUND ($) COMPANY ($)
- --------------------------------------------------------------------------------------------------------
ASSETS
Unaffiliated investments, at identified cost
(including short-term obligations) 390,876,628 1,525,099,495 492,590,079
Affiliated investments, at identified cost -- -- --
-------------- -------------- ------------
Total investments, at identified cost 390,876,628 1,525,099,495 492,590,079
-------------- -------------- ------------
Unaffiliated investments, at value 413,609,762 1,469,873,207 492,229,079
Affiliated investments, at value -- -- --
Repurchase agreement -- 71,382,000 361,000
-------------- -------------- ------------
Total investments, at value 413,609,762 1,541,255,207 492,590,079
Cash 30,290 1,515,948 689
Cash at broker -- -- --
Foreign currency
(cost of $819,307, $1,496 and $74, respectively) -- -- --
Receivable for:
Investments sold -- 7,055,752 --
Capital stock sold 11,818 1,786,351 791,520
Interest 4,693,045 26,405,024 1,135,521
Dividends -- -- --
Foreign tax reclaim -- -- --
Expense reimbursement due from Investment Advisor -- -- --
Deferred compensation plan 5,244 12,187 6,171
Other assets -- -- --
-------------- -------------- ------------
Total assets 418,350,159 1,578,030,469 494,523,980
- --------------------------------------------------------------------------------------------------------
LIABILITIES
Payable to custodian bank -- -- --
Payable for:
Investments purchased -- 8,685,950 4,995,588
Capital stock redeemed 140,942 3,231,078 1,171,474
Written options, at value (premium of $3,680) -- -- --
Futures variation margin -- -- --
Distributions 338,007 3,773,087 25,844
Investment advisory fee 177,226 737,786 216,931
Transfer agent fee 26,225 115,523 157,098
Pricing and bookkeeping fees 16,515 16,233 14,111
Merger costs -- -- --
Directors' fees 339 839 2,570
Audit fee 30,448 33,439 29,216
Service and distribution fees 2,688 201,981 --
Custody fee 1,557 1,393 2,594
Legal fee 3,056 12,585 6,000
Registration fees -- -- 17,299
Reports to shareholders 8,128 63,639 39,484
Chief compliance officer expenses and fees 876 1,947 964
Deferred compensation plan 5,244 12,187 6,171
Other liabilities 1,572 3,604 15,050
-------------- -------------- ------------
Total liabilities 752,823 16,891,271 6,700,394
NET ASSETS 417,597,336 1,561,139,198 487,823,586
- --------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF
Paid-in capital 395,554,418 1,562,141,577 487,824,292
Undistributed (overdistributed) net investment income 88,656 (7,581,535) --
Accumulated net investment loss -- -- --
Accumulated net realized gain (loss) (778,872) (9,576,556) (706)
Unrealized appreciation (depreciation) on:
Investments 22,733,134 16,155,712 --
Foreign currency translations -- -- --
Futures contracts -- -- --
Written options -- -- --
-------------- -------------- ------------
NET ASSETS 417,597,336 1,561,139,198 487,823,586
(a) Class G shares were initially offered on March 18, 2005.
See Accompanying Notes to Financial Statements.
112 - 113 Spread
STATEMENTS OF ASSETS AND LIABILITIES ___________________________________________
AUGUST 31, 2005 COLUMBIA FUNDS
INTERNATIONAL MID CAP SMALL CAP REAL ESTATE
STOCK GROWTH GROWTH EQUITY TECHNOLOGY
FUND (a) ($) FUND ($) FUND I ($) FUND ($) FUND ($)
- ---------------------------------------------------------------------------------------------------------------------------------
CLASS A
Net assets 71,269,642 6,077,526 -- 45,756,237 14,696,362
Shares outstanding 4,523,240 274,226 -- 1,643,635 1,676,163
Net asset value per share (b)(c) 15.76 22.16 -- 27.84 8.77
Maximum sales charge 5.75% 5.75% -- 5.75% 5.75%
Maximum offering price per share (d) 16.72 23.51 -- 29.54 9.31
- ---------------------------------------------------------------------------------------------------------------------------------
CLASS B
Net assets 2,025,516 6,377,077 -- 14,393,301 3,183,092
Shares outstanding 782,515 294,011 -- 516,835 371,610
Net asset value and offering price per share (b)(c) 15.37 21.69 -- 27.85 8.57
- ---------------------------------------------------------------------------------------------------------------------------------
CLASS C
Net assets 903,752 673,774 -- 4,820,846 1,972,160
Shares outstanding 58,576 30,994 -- 173,240 229,677
Net asset value and offering price per share (b)(c) 15.43 21.74 -- 27.83 8.59
- ---------------------------------------------------------------------------------------------------------------------------------
CLASS D
Net assets 740,261 437,521 -- 4,263,080 22,239
Shares outstanding 47,809 20,150 -- 153,112 2,580
Net asset value and offering price per share (b)(c) 15.48 21.71 -- 27.84 8.62
- ---------------------------------------------------------------------------------------------------------------------------------
CLASS G
Net assets 4,014,635 723,691 -- -- --
Shares outstanding 261,200 33,451 -- -- --
Net asset value and offering price per share (b)(c) 15.37 21.63 -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
CLASS T
Net assets -- 27,969,357 -- -- --
Shares outstanding -- 1,259,882 -- -- --
Net asset value per share (b) -- 22.20 -- -- --
Maximum sales charge -- 5.75% -- -- --
Maximum offering price per share (d) -- 23.55 -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
CLASS Z
Net assets 964,495,217 799,505,054 214,658,774 758,146,956 40,946,733
Shares outstanding 60,866,811 35,674,408 7,720,624 27,216,523 4,624,132
Net asset value and offering price per share (c) 15.85 22.41 27.80 27.86 8.86
FIXED
STRATEGIC SHORT TERM INCOME
INVESTOR BALANCED BOND SECURITIES
FUND ($) FUND ($) FUND ($) FUND ($)
- ------------------------------------------------------------------------------------------------------------------
CLASS A
Net assets 169,339,860 3,377,929 17,003,802 13,260,039
Shares outstanding 7,985,353 155,293 1,985,266 997,065
Net asset value per share (b)(c) 21.21 21.75 8.56 13.30
Maximum sales charge 5.75% 5.75% 4.75% 4.75%
Maximum offering price per share (d) 22.50 23.08 8.99 13.96
- ------------------------------------------------------------------------------------------------------------------
CLASS B
Net assets 49,318,309 8,149,028 19,417,790 4,113,884
Shares outstanding 2,366,233 375,180 2,267,125 309,336
Net asset value and offering price per share (b)(c) 20.84 21.72 8.56 13.30
- ------------------------------------------------------------------------------------------------------------------
CLASS C
Net assets 39,253,281 951,918 2,977,928 233,676
Shares outstanding 1,882,734 43,828 347,686 17,569
Net asset value and offering price per share (b)(c) 20.85 21.72 8.56 13.30
- ------------------------------------------------------------------------------------------------------------------
CLASS D
Net assets 525,269 319,787 5,579,063 1,274,493
Shares outstanding 25,209 14,726 651,381 95,834
Net asset value and offering price per share (b)(c) 20.84 21.72 8.56 13.30
- ------------------------------------------------------------------------------------------------------------------
CLASS G
Net assets -- -- 597,537 --
Shares outstanding -- -- 69,766 --
Net asset value and offering price per share (b)(c) -- -- 8.56 --
- ------------------------------------------------------------------------------------------------------------------
CLASS T
Net assets -- -- 17,974,717 --
Shares outstanding -- -- 2,098,625 --
Net asset value per share (b) -- -- 8.56 --
Maximum sales charge -- -- 4.75% --
Maximum offering price per share (d) -- -- 8.99 --
- ------------------------------------------------------------------------------------------------------------------
CLASS Z
Net assets 267,380,340 301,109,461 358,964,154 230,711,053
Shares outstanding 12,572,719 13,852,575 41,910,763 17,347,955
Net asset value and offering price per share (c) 21.27 21.74 8.56 13.30
OREGON
INTERMEDIATE
MUNICIPAL CONSERVATIVE DAILY
BOND HIGH YIELD INCOME
FUND ($) FUND ($) COMPANY ($)
- ----------------------------------------------------------------------------------------------------
CLASS A
Net assets 4,300,367 321,402,471 --
Shares outstanding 345,382 37,299,534 --
Net asset value per share (b)(c) 12.45 8.62 --
Maximum sales charge 3.25% 4.75% --
Maximum offering price per share (d) 12.87 9.05 --
- ----------------------------------------------------------------------------------------------------
CLASS B
Net assets 1,226,409 89,101,366 --
Shares outstanding 98,499 10,340,445 --
Net asset value and offering price per share (b)(c) 12.45 8.62 --
- ----------------------------------------------------------------------------------------------------
CLASS C
Net assets 600,664 18,002,390 --
Shares outstanding 48,243 2,089,196 --
Net asset value and offering price per share (b)(c) 12.45 8.62 --
- ----------------------------------------------------------------------------------------------------
CLASS D
Net assets 763,910 58,739,253 --
Shares outstanding 61,353 6,816,798 --
Net asset value and offering price per share (b)(c) 12.45 8.62 --
- ----------------------------------------------------------------------------------------------------
CLASS G
Net assets -- -- --
Shares outstanding -- -- --
Net asset value and offering price per share (b)(c) -- -- --
- ----------------------------------------------------------------------------------------------------
CLASS T
Net assets -- -- --
Shares outstanding -- -- --
Net asset value per share (b) -- -- --
Maximum sales charge -- -- --
Maximum offering price per share (d) -- -- --
- ----------------------------------------------------------------------------------------------------
CLASS Z
Net assets 410,705,986 1,073,893,718 487,823,586
Shares outstanding 32,985,752 124,627,655 487,824,292
Net asset value and offering price per share (c) 12.45 8.62 1.00
(a) Class G shares were initially offered on March 18, 2005.
(b) Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
(c) Redemption price per share is equal to net asset value less any applicable
redemption fees.
(d) On sales of $50,000 or more the offering price is reduced.
See Accompanying Notes to Financial Statements.
114 - 115 Spread
STATEMENTS OF OPERATIONS _______________________________________________________
FOR THE YEAR ENDED AUGUST 31, 2005 COLUMBIA FUNDS
INTERNATIONAL MID CAP SMALL CAP REAL ESTATE
STOCK GROWTH GROWTH EQUITY TECHNOLOGY
FUND (a)($) FUND ($) FUND I ($) FUND ($) FUND ($)
- ----------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME
INCOME
Dividends 25,104,236 3,484,153 445,446 38,301,337 124,489
Interest 403,849 426,452 63,432 479,981 33,051
Interest from affiliates -- -- -- -- --
Foreign taxes withheld (2,654,061) (37,802) -- (44,418) (10,770)
------------- ---------- ----------- ----------- ----------
Total income 22,854,024 3,872,803 508,878 38,736,900 146,770
- ----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment advisory fee 7,248,268 6,887,146 2,723,457 6,719,241 407,571
Distribution fee:
Class B 84,405 42,645 -- 101,012 20,743
Class C 5,344 4,311 -- 28,504 8,827
Class D 5,593 4,056 -- 32,425 170
Class G 12,445 4,544 -- -- --
Service fee:
Class A 114,547 13,048 -- 101,868 18,799
Class B 28,135 14,215 -- 33,671 6,914
Class C 1,781 1,437 -- 9,501 2,942
Class D 1,864 1,352 -- 10,808 57
Class G 5,744 2,097 -- -- --
Shareholder services fee - Class T -- 81,615 -- -- --
Transfer agent fee 935,272 1,257,102 434,412 1,058,396 149,540
Pricing and bookkeeping fees 173,965 161,452 113,870 159,371 62,614
Directors' fees 22,534 26,870 17,838 27,096 7,593
Custody fee 475,972 36,410 40,420 22,455 15,420
Audit fee 40,346 37,609 35,355 32,803 23,392
Registration fees 124,558 97,462 32,453 97,175 66,673
Merger costs 19,170 -- -- -- --
Chief compliance officer expenses and fees (See Note 4) 6,656 7,037 4,160 7,280 2,703
Non-recurring costs (See Note 11) 14,905 15,365 4,923 16,146 827
Other expenses 164,789 246,411 77,943 240,454 28,215
------------- ---------- ----------- ----------- ----------
Total Operating Expenses 9,486,293 8,942,184 3,484,831 8,698,206 823,000
Interest expense -- 5,137 7,138 -- --
------------- ---------- ----------- ----------- ----------
Total Expenses 9,486,293 8,947,321 3,491,969 8,698,206 823,000
Expenses waived/reimbursed by Investment Advisor (102,216) -- -- -- (27,412)
Fees waived by Distributor:
Class C -- -- -- -- --
Class D -- -- -- -- --
Fees waived by Transfer Agent (707,814) (425,782) -- -- --
Non-recurring costs assumed by Investment Advisor
(See Note 11) (14,905) (15,365) (4,923) (16,146) (827)
Custody earnings credit (1,296) (2,478) (154) (1,562) (1,126)
------------- ---------- ----------- ----------- ----------
Net Expenses 8,660,062 8,503,696 3,486,892 8,680,498 793,635
------------- ---------- ----------- ----------- ----------
Net Investment Income (Loss) 14,193,962 (4,630,893) (2,978,014) 30,056,402 (646,865)
FIXED
STRATEGIC SHORT TERM INCOME
INVESTOR BALANCED BOND SECURITIES
FUND ($) FUND ($) FUND ($) FUND ($)
- ---------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME
INCOME
Dividends 6,228,328 4,006,594 -- --
Interest 2,984,801 7,302,542 17,604,750 13,984,973
Interest from affiliates -- -- 94,868 --
Foreign taxes withheld (181,607) (4,687) -- --
------------- ---------- ----------- -----------
Total income 9,031,522 1,304,449 17,699,618 13,984,973
- ---------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment advisory fee 3,612,063 1,963,794 2,248,697 1,453,869
Distribution fee:
Class B 275,539 57,490 166,391 30,615
Class C 217,429 6,350 23,478 1,748
Class D 4,742 2,452 56,030 11,162
Class G -- -- 5,380 --
Service fee:
Class A 343,456 7,273 57,565 30,597
Class B 91,846 19,163 55,464 10,205
Class C 72,390 2,117 7,826 583
Class D 1,581 817 18,677 3,721
Class G -- -- 1,242 --
Shareholder services fee - Class T -- -- 28,676 --
Transfer agent fee 778,351 631,898 374,630 534,949
Pricing and bookkeeping fees 166,411 155,497 169,907 136,610
Directors' fees 15,721 19,297 18,754 15,105
Custody fee 54,023 36,449 24,095 21,727
Audit fee 36,869 37,372 34,462 38,302
Registration fees 102,505 63,519 104,529 65,643
Merger costs -- -- 43,439 82,310
Chief compliance officer expenses and fees (See Note 4) 4,970 4,644 5,126 4,053
Non-recurring costs (See Note 11) 8,869 6,932 8,860 5,158
Other expenses 150,284 106,865 97,182 70,985
------------- ---------- ----------- -----------
Total Operating Expenses 5,937,049 3,121,929 3,550,410 2,517,342
Interest expense -- -- -- --
------------- ---------- ----------- -----------
Total Expenses 5,937,049 3,121,929 3,550,410 2,517,342
Expenses waived/reimbursed by Investment Advisor -- -- (29,236) --
Fees waived by Distributor:
Class C -- -- (18,782) (350)
Class D -- -- (44,824) (2,232)
Fees waived by Transfer Agent (144,483) -- -- --
Non-recurring costs assumed by Investment Advisor
(See Note 11) (8,869) (6,932) (8,860) (5,158)
Custody earnings credit (1,398) (1,004) (3,396) (273)
------------- ---------- ----------- -----------
Net Expenses 5,782,299 3,113,993 3,445,312 2,509,329
------------- ---------- ----------- -----------
Net Investment Income (Loss) 3,249,223 8,190,456 14,254,306 11,475,644
OREGON
INTERMEDIATE
MUNICIPAL CONSERVATIVE DAILY
BOND HIGH YIELD INCOME
FUND ($) FUND ($) COMPANY ($)
- ----------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME
Income
Dividends -- -- --
Interest 19,600,162 110,297,336 14,252,790
Interest from affiliates -- -- --
Foreign taxes withheld -- -- --
------------- ------------ ------------
Total income 19,600,162 110,297,336 14,252,790
- ----------------------------------------------------------------------------------------------------------
EXPENSES
Investment advisory fee 2,132,126 9,467,680 2,773,785
Distribution fee:
Class B 9,231 738,175 --
Class C 3,301 158,454 --
Class D 5,875 543,124 --
Class G -- -- --
Service fee:
Class A 9,969 838,170 --
Class B 3,077 246,059 --
Class C 1,100 52,818 --
Class D 1,958 181,041 --
Class G -- -- --
Shareholder services fee - Class T -- -- --
Transfer agent fee 238,988 1,593,866 1,175,181
Pricing and bookkeeping fees 170,288 179,701 158,560
Directors' fees 13,178 46,921 25,757
Custody fee 21,147 41,898 22,773
Audit fee 39,287 41,290 31,754
Registration fees 61,593 153,053 54,121
Merger costs -- -- --
Chief compliance officer expenses and fees (See Note 4) 4,731 9,324 5,503
Non-recurring costs (See Note 11) 7,693 30,949 --
Other expenses 57,893 427,697 171,849
------------- ------------ ------------
Total Operating Expenses 2,781,435 14,750,220 4,419,283
Interest expense -- -- --
------------- ------------ ------------
Total Expenses 2,781,435 14,750,220 4,419,283
Expenses waived/reimbursed by Investment Advisor -- -- --
Fees waived by Distributor:
Class C (1,540) (31,691) --
Class D (2,742) (108,625) --
Fees waived by Transfer Agent -- -- --
Non-recurring costs assumed by Investment Advisor
(See Note 11) (7,693) (30,949) --
Custody earnings credit (1,560) (22,438) (3,672)
------------- ------------- ------------
Net Expenses 2,767,900 14,556,517 4,415,611
------------- ------------- ------------
Net Investment Income (Loss) 16,832,262 95,740,819 9,837,179
(a) Class G shares were initially offered on March 18, 2005.
See Accompanying Notes to Financial Statements.
116 - 117 Spread
STATEMENTS OF OPERATIONS _______________________________________________________
FOR THE YEAR ENDED AUGUST 31, 2005 COLUMBIA FUNDS
INTERNATIONAL MID CAP SMALL CAP REAL ESTATE
STOCK GROWTH GROWTH EQUITY TECHNOLOGY
FUND (a)($) FUND ($) FUND I ($) FUND ($) FUND ($)
- ----------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FOREIGN CURRENCY, FOREIGN CAPITAL GAINS TAX,
FUTURES CONTRACTS AND WRITTEN OPTIONS
Net realized gain (loss) on:
Unaffiliated investments 64,325,707 119,631,425 102,207,299 81,089,198 6,387,614
Foreign currency transactions (1,643,828) (99) -- -- (1,765)
Foreign capital gains tax (185,530) -- -- -- --
Futures contracts -- -- -- -- --
Written options -- -- -- -- (35,239)
Net realized loss on violation of
investment restriction (See Note 8) -- -- 2,548 -- --
------------- ----------- ----------- ----------- -----------
Net realized gain (loss) 62,496,349 119,631,326 102,209,847 81,089,198 6,350,610
------------- ----------- ----------- ----------- -----------
Net change in unrealized appreciation (depreciation) on:
Investments 52,990,926 117,840,710 (3,864,358) 74,511,099 8,215,187
Foreign currency translations (6,416) 40 -- -- --
Foreign capital gains tax 69,167 -- -- -- --
Futures contracts -- -- -- -- --
Written options -- -- -- -- (2,920)
------------- ----------- ----------- ----------- -----------
Net change in unrealized appreciation (depreciation) 53,053,677 117,840,750 (3,864,358) 74,511,099 8,212,267
------------- ----------- ----------- ----------- -----------
Net Gain (Loss) 115,550,026 237,472,076 98,345,489 155,600,297 14,562,877
------------- ----------- ----------- ----------- -----------
Net Increase Resulting From Operations 129,743,988 232,841,183 95,367,475 185,656,699 13,916,012
FIXED
STRATEGIC SHORT TERM INCOME
INVESTOR BALANCED BOND SECURITIES
FUND ($) FUND ($) FUND ($) FUND ($)
- ---------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FOREIGN CURRENCY, FOREIGN CAPITAL GAINS TAX,
FUTURES CONTRACTS AND WRITTEN OPTIONS
Net realized gain (loss) on:
Unaffiliated investments 28,676,406 37,567,601 (1,571,738) 2,330,098
Foreign currency transactions (77,636) -- -- --
Foreign capital gains tax -- -- -- --
Futures contracts -- 797 605,182 56,703
Written options -- -- -- --
Net realized loss on violation of
investment restriction (See Note 8) -- -- -- --
------------- ----------- ----------- -----------
Net realized gain (loss) 28,598,770 37,568,398 (966,556) 2,386,801
------------- ----------- ----------- -----------
Net change in unrealized appreciation (depreciation) on:
Investments 41,408,774 671,594 (3,740,653) (2,844,906)
Foreign currency translations 1,826 -- -- --
Foreign capital gains tax -- -- -- --
Futures contracts -- (5,469) 45,001 --
Written options -- -- -- --
------------- ----------- ----------- -----------
Net change in unrealized appreciation (depreciation) 41,410,600 666,125 (3,695,652) (2,844,906)
------------- ----------- ----------- -----------
Net Gain (Loss) 70,009,370 38,234,523 (4,662,208) (458,105)
------------- ----------- ----------- -----------
Net Increase Resulting From Operations 73,258,593 46,424,979 9,592,098 11,017,539
OREGON
INTERMEDIATE
MUNICIPAL CONSERVATIVE DAILY
BOND HIGH YIELD INCOME
FUND ($) FUND ($) COMPANY ($)
- --------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FOREIGN CURRENCY, FOREIGN CAPITAL GAINS TAX,
FUTURES CONTRACTS AND WRITTEN OPTIONS
Net realized gain (loss) on:
Unaffiliated investments (962,900) 15,204,376 (706)
Foreign currency transactions -- -- --
Foreign capital gains tax -- -- --
Futures contracts 177,629 -- --
Written options -- -- --
Net realized loss on violation of
investment restriction (See Note 8) -- -- --
-------------- ------------- ---------------
Net realized gain (loss) (785,271) 15,204,376 (706)
-------------- ------------- ---------------
Net change in unrealized appreciation (depreciation) on:
Investments 1,892,472 (23,698,367) --
Foreign currency translations -- -- --
Foreign capital gains tax -- -- --
Futures contracts -- -- --
Written options -- -- --
-------------- ------------- ---------------
Net change in unrealized appreciation (depreciation) 1,892,472 (23,698,367) --
-------------- ----------- ---------------
Net Gain (Loss) 1,107,201 (8,493,991) (706)
-------------- ------------- ---------------
Net Increase Resulting From Operations 17,939,463 87,246,828 9,836,473
(a) Class G shares were initially offered on March 18, 2005
See Accompanying Notes to Financial Statements.
118 - 119 Spread
STATEMENTS OF CHANGES IN NET ASSETS_____________________________________________
COLUMBIA FUNDS
INTERNATIONAL STOCK FUND MID CAP GROWTH FUND
------------------------------ ---------------------------------
YEAR ENDED AUGUST 31, YEAR ENDED AUGUST 31,
------------------------------ ---------------------------------
INCREASE (DECREASE) IN NET ASSETS 2005 (b)($) 2004 (b)($) 2005 ($) 2004 (b)($)
- --------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income (loss) 14,193,962 3,691,183 (4,630,893) (7,794,468)
Net realized gain on investments and foreign currency,
net of foreign capital gains tax 62,496,349 29,666,692 119,631,326 136,610,324
Net change in unrealized appreciation (depreciation)
on investments and foreign currency,
net of foreign capital gains tax 53,053,677 12,929,801 117,840,750 (178,274,861)
-------------- ------------- --------------- --------------
Net increase (decrease) resulting from operations 129,743,988 46,287,676 232,841,183 (49,459,005)
- --------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income:
Class A (6,207) -- -- --
Class B -- -- -- --
Class C -- -- -- --
Class D -- -- -- --
Class Z (3,041,056) (1,290,808) -- --
From net realized gains:
Class A -- -- -- --
Class B -- -- -- --
Class C -- -- -- --
Class D -- -- -- --
Class Z -- -- -- --
-------------- ------------- --------------- --------------
Total distributions to shareholders (3,047,263) (1,290,808) -- --
- --------------------------------------------------------------------------------------------------------------------------------
NET CAPITAL SHARE TRANSACTIONS 332,899,857 267,394,781 (253,558,502) (127,233,529)
-------------- ------------- --------------- --------------
REDEMPTION FEES 61,174 68,059 -- --
-------------- ------------- --------------- --------------
Net increase (decrease) in net assets 459,657,756 312,459,708 (20,717,319) (176,692,534)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 593,791,267 281,331,559 862,481,319 1,039,173,853
End of period 1,053,449,023 593,791,267 841,764,000 862,481,319
-------------- ------------- --------------- --------------
Undistributed net investment income, at end of period 11,591,579 2,274,226 -- --
Accumulated net investment loss, at end of period -- -- (11,999) (73,873)
SMALL CAP GROWTH FUND I REAL ESTATE EQUITY FUND
------------------------------ ---------------------------------
YEAR ENDED AUGUST 31, YEAR ENDED AUGUST 31,
------------------------------ ---------------------------------
INCREASE (DECREASE) IN NET ASSETS 2005 ($) 2004 ($) 2005 ($) 2004 (b)($)
- --------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income (loss) (2,978,014) (7,090,174) 30,056,402 33,479,872
Net realized gain on investments and foreign currency,
net of foreign capital gains tax 102,209,847 108,746,196 81,089,198 103,930,894
Net change in unrealized appreciation (depreciation)
on investments and foreign currency,
net of foreign capital gains tax (3,864,358) (104,998,632) 74,511,099 86,151,012
-------------- ------------- --------------- --------------
Net increase (decrease) resulting from operations 95,367,475 (3,342,610) 185,656,699 223,561,778
- --------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income:
Class A -- -- (1,382,574) (812,573)
Class B -- -- (366,492) (181,510)
Class C -- -- (94,718) (21,166)
Class D -- -- (117,799) (96,766)
Class Z -- -- (32,021,396) (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 -- -- (77,132,968) (8,007,605)
-------------- ------------- --------------- --------------
Total distributions to shareholders -- -- (116,229,283) (39,958,875)
- --------------------------------------------------------------------------------------------------------------------------------
NET CAPITAL SHARE TRANSACTIONS (423,725,008) (91,256,656) (165,370,335) (165,633,084)
-------------- ------------- --------------- --------------
REDEMPTION FEES -- -- -- --
-------------- ------------- --------------- --------------
Net increase (decrease) in net assets (328,357,533) (94,599,266) (95,942,919) 17,969,819
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 543,016,307 637,615,573 923,323,339 905,353,520
End of period 214,658,774 543,016,307 827,380,420 923,323,339
-------------- ------------- --------------- --------------
Undistributed net investment income, at end of period -- -- (4,839) 2,565,892
Accumulated net investment loss, at end of period -- -- -- --
(a) Class G shares were initially offered on March 18, 2005
(b) Class C shares were initially offered on October 13, 2003.
See Accompanying Notes to Financial Statements.
120 - 121 Spread
STATEMENTS OF CHANGES IN NET ASSETS ____________________________________________
COLUMBIA FUNDS
TECHNOLOGY FUND STRATEGIC INVESTOR FUND
------------------------------ ---------------------------------
YEAR ENDED AUGUST 31, YEAR ENDED AUGUST 31,
------------------------------ ---------------------------------
INCREASE (DECREASE) IN NET ASSETS 2005 ($) 2004 (a)($) 2005 ($) 2004 (a)($)
- --------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income (loss) (646,865) (500,247) 3,249,223 1,155,970
Net realized gain (loss) on investments, foreign
currency transactions, futures contracts and
written options 6,350,610 3,148,988 28,598,770 32,839,116
Net change in unrealized appreciation (depreciation)
on investments,foreign currency translations, futures
contracts and written options 8,212,267 (1,040,511) 41,410,600 11,369,353
-------------- ------------- --------------- --------------
Net increase resulting from operations 13,916,012 1,608,230 73,258,593 45,364,439
- --------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income:
Class A -- -- (167,034) (258,188)
Class B -- -- -- --
Class C -- -- -- --
Class D -- -- -- --
Class G -- -- -- --
Class T -- -- -- --
Class Z -- -- (1,065,517) (1,487,644)
From net realized gains:
Class A -- -- (1,363,900) --
Class B -- -- (348,215) --
Class C -- -- (284,992) --
Class D -- -- (6,971) --
Class Z -- -- (3,186,369) --
-------------- ------------- --------------- --------------
Total distributions to shareholders -- -- (6,422,998) (1,745,832)
- --------------------------------------------------------------------------------------------------------------------------------
NET CAPITAL SHARE TRANSACTIONS 11,109,769 12,887,088 49,610,948 74,083,888
-------------- ------------- --------------- --------------
Net increase (decrease) in net assets 25,025,781 14,495,318 116,446,543 117,702,495
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 35,794,805 21,299,487 409,370,516 291,668,021
End of period 60,820,586 35,794,805 525,817,059 409,370,516
-------------- ------------- --------------- --------------
Undistributed net investment income, at end of period -- -- 2,283,811 403,906
Accumulated net investment loss, at end of period (10,877) (4,733) -- --
BALANCED FUND SHORT TERM BOND FUND
------------------------------ ---------------------------------
YEAR ENDED AUGUST 31, YEAR ENDED AUGUST 31,
------------------------------ ---------------------------------
INCREASE (DECREASE) IN NET ASSETS 2005 ($) 2004 (a)($) 2005 ($) 2004 (a)($)
- --------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income (loss) 8,190,456 10,289,328 14,254,306 11,677,205
Net realized gain (loss) on investments, foreign
currency transactions, futures contracts and
written options 37,568,398 82,607,475 (966,556) 273,948
Net change in unrealized appreciation (depreciation)
on investments,foreign currency translations, futures
contracts and written options 666,125 (57,419,638) (3,695,652) 671,338
-------------- ------------- --------------- --------------
Net increase resulting from operations 46,424,979 35,477,165 9,592,098 12,622,491
- --------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income:
Class A (56,637) (23,144) (622,607) (587,965)
Class B (95,456) (36,893) (438,086) (312,592)
Class C (10,210) (2,894) (80,987) (32,292)
Class D (4,166) (4,198) (191,610) (283,218)
Class G -- -- (17,683) (18,591)
Class T -- -- (552,924) (518,577)
Class Z (8,917,704) (10,830,515) (12,364,339) (9,814,113)
From net realized gains:
Class A -- -- -- --
Class B -- -- -- --
Class C -- -- -- --
Class D -- -- -- --
Class Z -- -- -- --
-------------- ------------- --------------- --------------
Total distributions to shareholders (9,084,173) (10,897,644) (14,268,236) (11,567,348)
- --------------------------------------------------------------------------------------------------------------------------------
NET CAPITAL SHARE TRANSACTIONS (218,132,925) (175,070,636) (98,307,058) (24,733,033)
-------------- ------------- --------------- --------------
Net increase (decrease) in net assets (180,792,119) (150,491,115) (102,983,196) (23,677,890)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 494,700,242 645,191,357 525,498,187 549,176,077
End of period 313,908,123 494,700,242 422,514,991 525,498,187
-------------- ------------- --------------- --------------
Undistributed net investment income, at end of period 811,316 1,334,170 320,679 293,885
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.
122 - 123 Spread
STATEMENTS OF CHANGES IN NET ASSETS_____________________________________________
COLUMBIA FUNDS
FIXED INCOME OREGON INTERMEDIATE
SECURITIES FUND MUNICIPAL BOND FUND
------------------------------ ---------------------------------
YEAR ENDED AUGUST 31, YEAR ENDED AUGUST 31,
------------------------------ ---------------------------------
INCREASE (DECREASE) IN NET ASSETS 2005 ($) 2004 (a)($) 2005 ($) 2004 (a)($)
- --------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income 11,475,644 16,516,684 16,832,262 18,807,129
Net realized gain (loss) on investments
and futures contracts 2,386,801 6,873,389 (785,271) 3,418,754
Net change in unrealized appreciation (depreciation)
on investments and futures contracts (2,844,906) (509,297) 1,892,472 9,460,520
-------------- ------------- --------------- --------------
Net increase resulting from operations 11,017,539 22,880,776 17,939,463 31,686,403
- --------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income:
Class A (485,480) (352,163) (147,260) (105,796)
Class B (131,271) (142,805) (36,249) (36,225)
Class C (7,859) (3,354) (14,421) (3,971)
Class D (50,081) (76,542) (25,822) (26,303)
Class Z (11,461,497) (16,812,198) (16,563,180) (18,620,689)
From net realized gains:
Class A (126,359) -- (11,016) (28,392)
Class B (41,709) -- (3,546) (15,169)
Class C (2,300) -- (1,075) (702)
Class D (16,379) -- (2,262) (9,045)
Class Z (3,091,100) -- (1,212,920) (5,411,625)
-------------- ------------- --------------- --------------
Total distributions to shareholders (15,414,035) (17,387,062) (18,017,751) (24,257,917)
- --------------------------------------------------------------------------------------------------------------------------------
NET CAPITAL SHARE TRANSACTIONS (87,279,922) (184,814,748) (22,772,356) (56,244,778)
-------------- ------------- --------------- --------------
Net increase (decrease) in net assets (91,676,418) (179,321,034) (22,850,644) (48,816,292)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 341,269,563 520,590,597 440,447,980 489,264,272
End of period 249,593,145 341,269,563 417,597,336 440,447,980
-------------- ------------- --------------- --------------
Undistributed (overdistributed) net investment income,
at end of period (304,997) (766,809) 88,656 129,015
CONSERVATIVE
HIGH YIELD FUND DAILY INCOME COMPANY
------------------------------ ---------------------------------
YEAR ENDED AUGUST 31, YEAR ENDED AUGUST 31,
------------------------------ ---------------------------------
INCREASE (DECREASE) IN NET ASSETS 2005 ($) 2004 (a)($) 2005 ($) 2004 ($)
- --------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income 95,740,819 102,105,979 9,837,179 2,925,450
Net realized gain (loss) on investments
and futures contracts 15,204,376 23,256,561 (706) --
Net change in unrealized appreciation (depreciation)
on investments and futures contracts (23,698,367) 23,594,415 -- --
-------------- ------------- --------------- --------------
Net increase resulting from operations 87,246,828 148,956,955 9,836,473 2,925,450
- --------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income:
Class A (20,080,465) (16,842,377) -- --
Class B (5,162,031) (5,543,127) -- --
Class C (1,139,377) (651,730) -- --
Class D (3,908,977) (5,747,649) -- --
Class Z (72,953,508) (81,901,552) (9,837,179) (2,925,450)
From net realized gains:
Class A -- -- -- --
Class B -- -- -- --
Class C -- -- -- --
Class D -- -- -- --
Class Z -- -- -- --
-------------- ------------- --------------- --------------
Total distributions to shareholders (103,244,358) (110,686,435) (9,837,179) (2,925,450)
- --------------------------------------------------------------------------------------------------------------------------------
NET CAPITAL SHARE TRANSACTIONS (154,177,592) 108,928,738 (173,289,254) (237,050,335)
-------------- ------------- --------------- --------------
Net increase (decrease) in net assets (170,175,122) 147,199,258 (173,289,960) (237,050,335)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 1,731,314,320 1,584,115,062 661,113,546 898,163,881
End of period 1,561,139,198 1,731,314,320 487,823,586 661,113,546
-------------- ------------- --------------- --------------
Undistributed (overdistributed) net investment income,
at end of period (7,581,535) (8,565,037) -- --
(a) Class C shares were initially offered on October 13, 2003.
See Accompanying Notes to Financial Statements.
124 - 125 Spread
STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY ___________________
COLUMBIA FUNDS
INTERNATIONAL STOCK FUND
------------------------------------------------------------------
YEAR ENDED YEAR ENDED
AUGUST 31, 2005 (a) AUGUST 31, 2004 (b)
------------------------------ ---------------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($)
- --------------------------------------------------------------------------------------------------------------------------------
CLASS A
Subscriptions 279,759 4,113,764 373,131 4,764,290
Proceeds received in connection with merger 2,958,672 45,540,845 -- --
Distributions reinvested 376 5,548 -- --
Redemptions (565,273) (8,373,600) (433,072) (5,595,729)
-------------- ------------- --------------- --------------
Net increase (decrease) 2,673,534 41,286,557 (59,941) (831,439)
CLASS B
Subscriptions 189,308 2,728,980 257,984 3,329,492
Proceeds received in connection with merger 63,132 950,545 -- --
Redemptions (267,694) (3,839,600) (378,452) (4,865,635)
-------------- ------------- --------------- --------------
Net increase (decrease) (15,254) (160,075) (120,468) (1,536,143)
CLASS C
Subscriptions 26,606 389,968 77,717 997,912
Proceeds received in connection with merger 6,046 91,380 -- --
Redemptions (23,189) (336,954) (28,604) (374,843)
-------------- ------------- --------------- --------------
Net increase 9,463 144,394 49,113 623,069
CLASS D
Subscriptions 3,721 53,487 8,022 101,833
Redemptions (13,060) (187,460) (7,016) (89,891)
-------------- ------------- --------------- --------------
Net increase (decrease) (9,339) (133,973) 1,006 11,942
CLASS G
Subscriptions 1,434 20,898 -- --
Proceeds received in connection with merger 317,111 4,776,315 -- --
Redemptions (57,345) (839,582) -- --
-------------- ------------- --------------- --------------
Net increase (decrease) 261,200 3,957,631 -- --
CLASS T
Subscriptions -- -- -- --
Redemptions -- -- -- --
-------------- ------------- --------------- --------------
Net decrease -- -- -- --
CLASS Z
Subscriptions 11,577,399 169,031,615 26,956,809 352,679,563
Proceeds received in connection with merger 27,533,402 425,784,235 -- --
Distributions reinvested 61,891 916,609 44,157 563,444
Redemptions (20,776,995) (307,927,136) (6,345,590) (84,115,655)
-------------- ------------- --------------- --------------
Net increase (decrease) 18,395,697 287,805,323 20,655,376 269,127,352
MID CAP GROWTH FUND
------------------------------------------------------------------
YEAR ENDED YEAR ENDED
AUGUST 31, 2005 AUGUST 31, 2004 (b)
------------------------------ ---------------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($)
- --------------------------------------------------------------------------------------------------------------------------------
CLASS A
Subscriptions 132,045 2,663,508 291,660 5,434,656
Proceeds received in connection with merger -- -- -- --
Distributions reinvested -- -- -- --
Redemptions (118,711) (2,353,815) (280,956) (5,162,016)
-------------- ------------- --------------- --------------
Net increase (decrease) 13,334 309,693 10,704 272,640
CLASS B
Subscriptions 61,503 1,216,834 125,421 2,339,336
Proceeds received in connection with merger -- -- -- --
Redemptions (70,619) (1,352,521) (58,231) (1,066,216)
-------------- ------------- --------------- --------------
Net increase (decrease) (9,116) (135,687) 67,190 1,273,120
CLASS C
Subscriptions 15,372 305,772 35,421 677,522
Proceeds received in connection with merger -- -- -- --
Redemptions (14,200) (278,993) (5,599) (102,551)
-------------- ------------- --------------- --------------
Net increase 1,172 26,779 29,822 574,971
CLASS D
Subscriptions 776 14,660 3,419 61,969
Redemptions (16,346) (318,047) (8,721) (155,931)
-------------- ------------- --------------- --------------
Net increase (decrease) (15,570) (303,387) (5,302) (93,962)
CLASS G
Subscriptions 802 15,464 1,362 25,257
Proceeds received in connection with merger -- -- -- --
Redemptions (6,064) (116,633) (7,466) (136,718)
-------------- ------------- --------------- --------------
Net increase (decrease) (5,262) (101,169) (6,104) (111,461)
CLASS T
Subscriptions 15,597 312,764 26,462 498,501
Redemptions (237,908) (4,717,219) (195,050) (3,653,424)
-------------- ------------- --------------- --------------
Net decrease (222,311) (4,404,455) (168,588) (3,154,923)
CLASS Z
Subscriptions 3,792,797 75,115,004 6,071,998 114,038,896
Proceeds received in connection with merger -- -- -- --
Distributions reinvested -- -- -- --
Redemptions (16,316,370) (324,065,280) (12,860,265) (240,032,810)
-------------- ------------- --------------- --------------
Net increase (decrease) (12,523,573) (248,950,276) (6,788,267) (125,993,914)
(a) Class G shares were initially offered on March 18, 2005.
(b) Class C shares were initially offered on October 13, 2003.
See Accompanying Notes to Financial Statements.
126 - 127 Spread
STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY ___________________
COLUMBIA FUNDS
SMALL CAP GROWTH FUND I
------------------------------------------------------------------
YEAR ENDED YEAR ENDED
AUGUST 31, 2005 AUGUST 31, 2004
------------------------------ ---------------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($)
- --------------------------------------------------------------------------------------------------------------------------------
CLASS A
Subscriptions -- -- -- --
Distributions reinvested -- -- -- --
Redemptions -- -- -- --
-------------- ------------- --------------- --------------
Net increase -- -- -- --
CLASS B
Subscriptions -- -- -- --
Distributions reinvested -- -- -- --
Redemptions -- -- -- --
-------------- ------------- --------------- --------------
Net increase -- -- -- --
CLASS C
Subscriptions -- -- -- --
Distributions reinvested -- -- -- --
Redemptions -- -- -- --
-------------- ------------- --------------- --------------
Net increase -- -- -- --
CLASS D
Subscriptions -- -- -- --
Distributions reinvested -- -- -- --
Redemptions -- -- -- --
-------------- ------------- --------------- --------------
Net decrease -- -- -- --
CLASS Z
Subscriptions 1,826,694 44,583,055 10,261,845 240,997,658
Distributions reinvested -- -- -- --
Redemptions (19,575,324) (468,308,063) (14,285,853) (332,254,314)
-------------- ------------- --------------- --------------
Net decrease (17,748,630) (423,725,008) (4,024,008) (91,256,656)
REAL ESTATE EQUITY FUND
------------------------------------------------------------------
YEAR ENDED YEAR ENDED
AUGUST 31, 2005 AUGUST 31, 2004 (a)
------------------------------ ---------------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($)
- --------------------------------------------------------------------------------------------------------------------------------
CLASS A
Subscriptions 837,311 22,058,971 1,626,030 36,784,752
Distributions reinvested 163,062 4,273,318 38,787 907,726
Redemptions (634,655) (16,663,423) (974,687) (22,619,991)
-------------- ------------- --------------- --------------
Net increase 365,718 9,668,866 690,130 15,072,487
CLASS B
Subscriptions 167,187 4,458,167 294,726 6,857,490
Distributions reinvested 43,178 1,134,109 7,307 170,161
Redemptions (132,394) (3,513,324) (90,228) (2,141,291)
-------------- ------------- --------------- --------------
Net increase 77,971 2,078,952 211,805 4,886,360
CLASS C
Subscriptions 102,777 2,696,606 106,764 2,516,283
Distributions reinvested 12,459 327,172 954 22,917
Redemptions (35,984) (961,897) (13,730) (323,033)
-------------- ------------- --------------- --------------
Net increase 79,252 2,061,881 93,988 2,216,167
CLASS D
Subscriptions 5,615 154,473 45,881 1,008,069
Distributions reinvested 14,938 392,365 4,705 107,738
Redemptions (26,025) (701,268) (56,804) (1,309,816)
-------------- ------------- --------------- --------------
Net decrease (5,472) (154,430) (6,218) (194,009)
CLASS Z
Subscriptions 5,988,150 158,289,129 15,372,264 353,978,184
Distributions reinvested 3,174,740 83,157,572 1,287,979 29,504,145
Redemptions (16,041,455) (420,472,305) (24,582,645) (571,096,418)
-------------- ------------- --------------- --------------
Net decrease (6,878,565) (179,025,604) (7,922,402) (187,614,089)
(a) Class C shares were initially offered on October 13, 2003.
See Accompanying Notes to Financial Statements.
128 - 129 Spread
STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY ___________________
COLUMBIA FUNDS
TECHNOLOGY FUND
------------------------------------------------------------------
YEAR ENDED YEAR ENDED
AUGUST 31, 2005 AUGUST 31, 2004 (a)
------------------------------ ---------------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($)
- --------------------------------------------------------------------------------------------------------------------------------
CLASS A
Subscriptions 1,524,022 12,081,354 618,899 4,301,075
Distributions reinvested -- -- -- --
Redemptions (281,238) (2,203,178) (249,120) (1,754,239)
-------------- ------------- --------------- --------------
Net increase 1,242,784 9,878,176 369,779 2,546,836
CLASS B
Subscriptions 209,759 1,613,063 504,341 3,487,212
Distributions reinvested -- -- -- --
Redemptions (181,799) (1,399,566) (373,299) (2,552,196)
-------------- ------------- --------------- --------------
Net increase 27,960 213,497 131,042 935,016
CLASS C
Subscriptions 199,364 1,564,179 92,300 649,419
Distributions reinvested -- -- -- --
Redemptions (45,764) (337,505) (16,223) (116,780)
-------------- ------------- --------------- --------------
Net increase 153,600 1,226,674 76,077 532,639
CLASS D
Subscriptions 189 1,409 7,740 48,269
Distributions reinvested -- -- -- --
Redemptions (929) (7,079) (6,929) (49,293)
-------------- ------------- --------------- --------------
Net increase (decrease) (740) (5,670) 811 (1,024)
CLASS Z
Subscriptions 2,763,431 21,422,105 5,040,767 35,087,433
Distributions reinvested -- -- -- --
Redemptions (2,761,350) (21,625,013) (3,732,749) (26,213,812)
-------------- ------------- --------------- --------------
Net increase (decrease) 2,081 (202,908) 1,308,018 8,873,621
STRATEGIC INVESTOR FUND
------------------------------------------------------------------
YEAR ENDED YEAR ENDED
AUGUST 31, 2005 AUGUST 31, 2004 (a)
------------------------------ ---------------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($)
- --------------------------------------------------------------------------------------------------------------------------------
CLASS A
Subscriptions 3,503,422 69,841,011 2,239,525 40,978,091
Distributions reinvested 73,076 1,460,064 13,874 239,722
Redemptions (1,012,041) (20,387,801) (602,009) (10,711,424)
-------------- ------------- --------------- --------------
Net increase 2,564,457 50,913,274 1,651,390 30,506,389
CLASS B
Subscriptions 1,402,288 27,555,529 1,117,349 20,292,528
Distributions reinvested 15,739 310,686 -- --
Redemptions (266,308) (5,272,198) (117,595) (2,110,515)
-------------- ------------- --------------- --------------
Net increase 1,151,719 22,594,017 999,754 18,182,013
CLASS C
Subscriptions 1,185,138 23,122,317 842,913 15,346,291
Distributions reinvested 12,557 248,001 -- --
Redemptions (130,193) (2,596,010) (27,681) (499,929)
-------------- ------------- --------------- --------------
Net increase 1,067,502 20,774,308 815,232 14,846,362
CLASS D
Subscriptions 431 8,429 1,168 20,852
Distributions reinvested 318 6,281 -- --
Redemptions (13,676) (270,375) (7,595) (136,369)
-------------- ------------- --------------- --------------
Net increase (decrease) (12,927) (255,665) (6,427) (115,517)
CLASS Z
Subscriptions 3,419,506 68,011,658 5,588,367 100,270,955
Distributions reinvested 206,006 4,120,033 85,074 1,470,072
Redemptions (5,826,486) (116,546,677) (5,130,203) (91,076,386)
-------------- ------------- --------------- --------------
Net increase (decrease) (2,200,974) (44,414,986) 543,238 10,664,641
(a) Class C shares were initially offered on October 13, 2003.
See Accompanying Notes to Financial Statements.
130 - 131 Spread
STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY ___________________
COLUMBIA FUNDS
BALANCED FUND
------------------------------------------------------------------
YEAR ENDED YEAR ENDED
AUGUST 31, 2005 AUGUST 31, 2004 (a)
------------------------------ ---------------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($)
- --------------------------------------------------------------------------------------------------------------------------------
CLASS A
Subscriptions 78,005 1,630,459 110,630 2,249,214
Distributions reinvested 2,421 50,125 1,059 21,473
Redemptions (54,929) (1,142,204) (16,827) (342,215)
-------------- ------------- --------------- --------------
Net increase (decrease) 25,497 538,380 94,862 1,928,472
CLASS B
Subscriptions 92,055 1,914,875 254,329 5,127,102
Distributions reinvested 3,941 81,752 1,523 30,867
Redemptions (88,265) (1,827,580) (63,198) (1,271,030)
-------------- ------------- --------------- --------------
Net increase (decrease) 7,731 169,047 192,654 3,886,939
CLASS C
Subscriptions 21,016 432,954 41,424 839,284
Distributions reinvested 399 8,303 136 2,777
Redemptions (14,395) (301,955) (4,752) (94,839)
-------------- ------------- --------------- --------------
Net increase (decrease) 7,020 139,302 36,808 747,222
CLASS D
Subscriptions 60 1,264 7,349 141,785
Distributions reinvested 158 3,261 194 3,858
Redemptions (3,702) (75,016) (29,534) (593,961)
-------------- ------------- --------------- --------------
Net decrease (3,484) (70,491) (21,991) (448,318)
CLASS G
Subscriptions -- -- -- --
Distributions reinvested -- -- -- --
Redemptions -- -- -- --
-------------- ------------- --------------- --------------
Net decrease -- -- -- --
CLASS T
Subscriptions -- -- -- --
Distributions reinvested -- -- -- --
Redemptions -- -- -- --
-------------- ------------- --------------- --------------
Net decrease -- -- -- --
CLASS Z
Subscriptions 1,751,820 36,254,816 3,762,668 75,662,935
Distributions reinvested 423,331 8,735,210 535,817 10,708,630
Redemptions (12,705,031) (263,899,189) (13,282,884) (267,556,516)
-------------- ------------- --------------- --------------
Net decrease (10,529,880) (218,909,163) (8,984,399) (181,184,951)
SHORT TERM BOND FUND
------------------------------------------------------------------
YEAR ENDED YEAR ENDED
AUGUST 31, 2005 AUGUST 31, 2004 (a)
------------------------------ ---------------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($)
- --------------------------------------------------------------------------------------------------------------------------------
CLASS A
Subscriptions 659,408 5,670,974 2,363,890 20,470,127
Distributions reinvested 58,612 503,267 55,629 481,353
Redemptions (1,989,425) (17,081,156) (3,483,902) (30,155,847)
-------------- ------------- --------------- --------------
Net increase (decrease) (1,271,405) (10,906,915) (1,064,383) (9,204,367)
CLASS B
Subscriptions 412,736 3,547,791 1,020,370 8,811,024
Distributions reinvested 40,425 347,015 28,513 246,689
Redemptions (1,093,205) (9,392,644) (1,268,886) (10,976,173)
-------------- ------------- --------------- --------------
Net increase (decrease) (640,044) (5,497,838) (220,003) (1,918,460)
CLASS C
Subscriptions 192,619 1,655,316 446,619 3,866,656
Distributions reinvested 7,367 63,242 3,243 28,007
Redemptions (214,291) (1,841,047) (87,871) (758,972)
-------------- ------------- --------------- --------------
Net increase (decrease) (14,305) (122,489) 361,991 3,135,691
CLASS D
Subscriptions 44,586 383,154 195,345 1,693,396
Distributions reinvested 18,253 156,740 25,582 221,473
Redemptions (546,393) (4,694,737) (1,232,826) (10,651,859)
-------------- ------------- --------------- --------------
Net decrease (483,554) (4,154,843) (1,011,899) (8,736,990)
CLASS G
Subscriptions 84 720 584 5,059
Distributions reinvested 2,010 17,259 2,071 17,922
Redemptions (54,572) (468,455) (67,631) (585,284)
-------------- ------------- --------------- --------------
Net decrease (52,478) (450,476) (64,976) (562,303)
CLASS T
Subscriptions 60,120 515,692 49,312 426,415
Distributions reinvested 56,311 483,377 51,571 446,329
Redemptions (466,198) (4,003,233) (926,216) (7,999,639)
-------------- ------------- --------------- --------------
Net decrease (349,767) (3,004,164) (825,333) (7,126,895)
CLASS Z
Subscriptions 17,454,168 150,005,109 27,479,655 237,930,286
Distributions reinvested 366,185 3,144,892 389,324 3,368,689
Redemptions (26,482,766) (227,320,334) (27,927,420) (241,618,684)
-------------- ------------- --------------- --------------
Net decrease (8,662,413) (74,170,333) (58,441) (319,709)
(a) Class C shares were initially offered on October 13, 2003.
See Accompanying Notes to Financial Statements.
132 - 133 Spread
STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY ___________________
COLUMBIA FUNDS
FIXED INCOME SECURITIES FUND
------------------------------------------------------------------
YEAR ENDED YEAR ENDED
AUGUST 31, 2005 AUGUST 31, 2004 (a)
------------------------------ ---------------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($)
- --------------------------------------------------------------------------------------------------------------------------------
CLASS A
Subscriptions 468,292 6,254,330 428,638 5,773,085
Distributions reinvested 42,773 570,477 23,362 314,190
Redemptions (307,990) (4,103,994) (220,544) (2,972,153)
-------------- ------------- --------------- --------------
Net increase 203,075 2,720,813 231,456 3,115,122
CLASS B
Subscriptions 51,113 679,018 118,362 1,602,183
Distributions reinvested 10,578 141,164 8,019 107,908
Redemptions (73,754) (984,206) (135,602) (1,820,197)
-------------- ------------- --------------- --------------
Net increase (decrease) (12,063) (164,024) (9,221) (110,106)
CLASS C
Subscriptions 17,573 234,184 17,216 232,958
Distributions reinvested 540 7,201 209 2,809
Redemptions (12,287) (162,965) (5,682) (76,813)
-------------- ------------- --------------- --------------
Net increase 5,826 78,420 11,743 158,954
CLASS D
Subscriptions 1,832 24,350 2,595 34,899
Distributions reinvested 2,862 38,204 3,148 42,410
Redemptions (38,236) (509,586) (73,680) (981,085)
-------------- ------------- --------------- --------------
Net increase (decrease) (33,542) (447,032) (67,937) (903,776)
CLASS Z
Subscriptions 3,005,973 40,115,004 5,273,336 71,044,891
Distributions reinvested 991,041 13,230,685 1,165,214 15,695,834
Redemptions (10,699,274) (142,813,788) (20,329,678) (273,815,667)
-------------- ------------- --------------- --------------
Net decrease (6,702,260) (89,468,099) (13,891,128) (187,074,942)
OREGON INTERMEDIATE MUNICIPAL BOND FUND
------------------------------------------------------------------
YEAR ENDED YEAR ENDED
AUGUST 31, 2005 AUGUST 31, 2004 (a)
------------------------------ ---------------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($)
- --------------------------------------------------------------------------------------------------------------------------------
CLASS A
Subscriptions 65,259 807,387 170,654 2,095,832
Distributions reinvested 6,390 79,331 6,574 81,626
Redemptions (21,845) (270,629) (56,206) (688,255)
-------------- ------------- --------------- --------------
Net increase 49,804 616,089 121,022 1,489,203
CLASS B
Subscriptions 7,732 96,051 35,938 446,223
Distributions reinvested 1,677 20,819 2,314 28,769
Redemptions (6,506) (80,715) (24,250) (302,376)
-------------- ------------- --------------- --------------
Net increase (decrease) 2,903 36,155 14,002 172,616
CLASS C
Subscriptions 29,016 360,635 22,201 277,202
Distributions reinvested 814 10,104 227 2,808
Redemptions (3,931) (48,966) (84) (1,027)
-------------- ------------- --------------- --------------
Net increase 25,899 321,773 22,344 278,983
CLASS D
Subscriptions -- -- 12,020 148,564
Distributions reinvested 1,550 19,245 2,010 24,984
Redemptions (3,669) (45,705) (7,665) (95,185)
-------------- ------------- --------------- --------------
Net increase (decrease) (2,119) (26,460) 6,365 78,363
CLASS Z
Subscriptions 2,480,673 30,813,256 3,104,735 38,548,478
Distributions reinvested 1,089,490 13,526,156 1,524,565 18,948,258
Redemptions (5,480,491) (68,059,325) (9,361,486) (115,760,679)
-------------- ------------- --------------- --------------
Net decrease (1,910,328) (23,719,913) (4,732,186) (58,263,943)
(a) Class C shares were initially offered on October 13, 2003.
See Accompanying Notes to Financial Statements.
134 - 135 Spread
STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY ___________________
COLUMBIA FUNDS
CONSERVATIVE HIGH YIELD FUND
------------------------------------------------------------------
YEAR ENDED YEAR ENDED
AUGUST 31, 2005 AUGUST 31, 2004 (a)
------------------------------ ---------------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($)
- --------------------------------------------------------------------------------------------------------------------------------
CLASS A
Subscriptions 13,423,846 117,028,635 26,673,537 230,909,589
Distributions reinvested 2,065,131 17,948,131 1,708,530 14,793,686
Redemptions (16,837,776) (146,110,417) (12,505,103) (108,035,805)
-------------- ------------- --------------- --------------
Net increase (decrease) (1,348,799) (11,133,651) 15,876,964 137,667,470
CLASS B
Subscriptions 862,559 7,531,933 3,063,956 26,566,619
Distributions reinvested 389,458 3,385,348 405,219 3,509,869
Redemptions (2,653,951) (23,007,017) (2,325,212) (20,086,982)
-------------- ------------- --------------- --------------
Net increase (decrease) (1,401,934) (12,089,736) 1,143,963 9,989,506
CLASS C
Subscriptions 762,137 6,674,038 2,692,176 23,449,925
Distributions reinvested 71,725 623,538 40,122 346,368
Redemptions (1,060,783) (9,187,204) (416,181) (3,598,943)
-------------- ------------- --------------- --------------
Net increase (decrease) (226,921) (1,889,628) 2,316,117 20,197,350
CLASS D
Subscriptions 146,777 1,283,654 1,187,729 10,250,062
Distributions reinvested 265,523 2,309,840 379,149 3,285,854
Redemptions (3,590,651) (31,251,310) (3,773,325) (32,589,124)
-------------- ------------- --------------- --------------
Net decrease (3,178,351) (27,657,816) (2,206,447) (19,053,208)
CLASS Z
Subscriptions 32,414,551 282,996,586 71,607,065 621,117,899
Distributions reinvested 3,631,192 31,579,944 5,291,757 45,884,199
Redemptions (47,950,763) (415,983,291) (81,442,188) (706,874,478)
-------------- ------------- --------------- --------------
Net decrease (11,905,020) (101,406,761) (4,543,366) (39,872,380)
DAILY INCOME COMPANY
------------------------------------------------------------------
YEAR ENDED YEAR ENDED
AUGUST 31, 2005 AUGUST 31, 2004 (a)
------------------------------ ---------------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($)
- --------------------------------------------------------------------------------------------------------------------------------
CLASS A
Subscriptions -- -- -- --
Distributions reinvested -- -- -- --
Redemptions -- -- -- --
-------------- ------------- --------------- --------------
Net increase (decrease) -- -- -- --
CLASS B
Subscriptions -- -- -- --
Distributions reinvested -- -- -- --
Redemptions -- -- -- --
-------------- ------------- --------------- --------------
Net increase (decrease) -- -- -- --
CLASS C
Subscriptions -- -- -- --
Distributions reinvested -- -- -- --
Redemptions -- -- -- --
-------------- ------------- --------------- --------------
Net increase (decrease) -- -- -- --
CLASS D
Subscriptions -- -- -- --
Distributions reinvested -- -- -- --
Redemptions -- -- -- --
-------------- ------------- --------------- --------------
Net decrease -- -- -- --
CLASS Z
Subscriptions 332,495,968 332,495,968 522,717,108 522,717,108
Distributions reinvested 9,276,984 9,276,984 2,669,462 2,669,462
Redemptions (515,062,206) (515,062,206) (762,436,905) (762,436,905)
-------------- ------------- --------------- --------------
Net decrease (173,289,254) (173,289,254) (237,050,335) (237,050,335)
(a) Class C shares were initially offered on October 13, 2003.
See Accompanying Notes to Financial Statements.
136 - 137 Spread
NOTES TO FINANCIAL STATEMENTS __________________________________________________
AUGUST 31, 2005 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 International Stock Fund
Columbia Mid Cap Growth Fund
Columbia Small Cap Growth Fund I
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 Oregon Intermediate Municipal Bond Fund
Columbia Conservative High Yield Fund
Columbia Daily Income Company
Effective October 10, 2005, Columbia Small Cap Growth Fund, Columbia Oregon
Municipal Bond Fund and Columbia High Yield Fund were renamed Columbia Small Cap
Growth Fund I, Columbia Oregon Intermediate Municipal Bond Fund and Columbia
Conservative High Yield Fund, respectively.
All Funds are diversified except for the Columbia Real Estate Equity Fund,
Columbia Technology Fund and Columbia Oregon Intermediate Municipal Bond Fund,
which are non-diversified.
INVESTMENT GOALS
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 I 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 Oregon
Intermediate 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 Conservative 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 an unlimited number of shares. Each of the Funds, except the
Columbia International Stock Fund, Columbia Mid Cap Growth Fund, Columbia Small
Cap Growth Fund I, 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 I and Columbia Daily Income Company
offer only Class Z shares. The Columbia International Stock Fund offers six
classes of shares: Class A, Class B, Class C, Class D, Class G and Class Z.
Class G commenced operations on March 18, 2005. The Columbia Mid Cap Growth Fund
and Columbia Short Term Bond Fund offer seven classes of shares: Class A, Class
B, Class C, Class D, Class G, Class T and Class Z. Each share class has its own
expense structure.
Class A and Class T shares are subject to a front-end sales charge based on the
amount of initial investment. Class A and Class T shares purchased without an
initial sales charge in accounts aggregating up to $50 million at the time of
purchase are subject to a 1.00%
138
________________________________________________________________________________
AUGUST 31, 2005 COLUMBIA FUNDS
contingent deferred sales charge ("CDSC") on shares sold within twelve 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 generally
will convert to Class A shares eight years after purchase. 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 front-end sales charge of 1.00% is waived
after October 13, 2003. Class Z shares are offered continuously at net asset
value. There are certain restrictions on the purchase of Class Z shares, as
described in each Fund's prospectus.
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 and certain investment companies 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 pricing services 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 open-end 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 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
139
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AUGUST 31, 2005 COLUMBIA FUNDS
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 that have
quotations which management believes are not appropriate, are valued at fair
value as determined in good faith under consistently applied procedures
established by and under the general supervision of the Board of Trustees.
Securities in 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 a Fund's exposure to the
underlying instrument. Writing call options tends to decrease a Fund's 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
Funds may not be able to enter into a closing transaction because of an illiquid
market. 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.
Certain Funds may also write call options on securities they own. Writing call
options tends to decrease a Fund's exposure to the underlying security. When a
Fund writes a call option, an amount equal to the premium received is recorded
as a liability. Premiums received from writing call options which expire are
treated as realized gains.
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
140
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AUGUST 31, 2005 COLUMBIA FUNDS
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.
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.
TREASURY INFLATION PROTECTED SECURITIES
The Fund may invest in Treasury Inflation Protected Securities ("TIPS"). The
principal amount of TIPS is adjusted periodically for inflation based on a
monthly published index. Interest payments are based on the inflation-adjusted
principal at the time the interest is paid.
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.
MORTGAGE DOLLAR ROLL TRANSACTIONS
Certain Funds may enter into mortgage dollar roll transactions. A mortgage
dollar roll transaction involves a sale by a Fund of investments from its
portfolio with an agreement by the Fund to repurchase similar, but not
identical, securities at an agreed upon price and date. During the period
between the sale and repurchase, the Fund will not be entitled to accrue
interest and receive principal payment on the securities sold. Mortgage dollar
roll transactions involve the risk that the market value of the securities sold
by the Fund may decline below the repurchase price of those securities. In the
event the buyer of the securities under a mortgage dollar roll transaction files
for bankruptcy or becomes insolvent, the Fund's use of proceeds of the
transaction may be restricted pending a determination by or with respect to the
other party. The Funds identify U.S. Government securities or other liquid high
grade debt obligations in an amount equal to the mortgage dollar roll
transactions.
DELAYED DELIVERY SECURITIES
The Funds may trade securities on other than normal settlement terms, including
securities purchased or sold on a "when-issued" basis. This may increase the
risk if the other party to the transaction fails to deliver and causes the Funds
to subsequently invest at less advantageous prices. The Funds identify cash or
liquid portfolio securities as segregated with the custodian in an amount equal
to the delayed delivery commitment.
INCOME RECOGNITION
Interest income is recorded on the accrual basis. Premium and discount are
amortized and accreted,
141
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AUGUST 31, 2005 COLUMBIA FUNDS
respectively, on all debt securities. Original issue discount is accreted to
interest income over the life of the security with a corresponding increase in
the cost basis. Corporate actions and dividend income are recorded on the
ex-date, except for certain foreign securities which are recorded as soon after
ex-date as the 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 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 Oregon Intermediate Municipal Bond Fund and Columbia Conservative 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 based on the relative net assets of each class of
that Fund.
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 or tax-exempt 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 International Stock Fund,
Columbia Mid Cap Growth Fund, Columbia Small Cap Growth Fund I, 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 Oregon Intermediate Municipal
Bond Fund and Columbia Conservative High Yield Fund are declared daily and paid
monthly. Dividends from net investment income of the Columbia Daily Income
Company are declared and paid daily. 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.
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AUGUST 31, 2005 COLUMBIA FUNDS
NOTE 3. FEDERAL TAX INFORMATION
The timing and character of income and capital gain distributions are determined
in accordance with income tax regulations, which may differ from GAAP.
Reclassifications are made to the Funds' capital accounts for permanent tax
differences to reflect income and gains available for distribution (or available
capital loss carryforwards) under income tax regulations.
For the year ended August 31, 2005, permanent book and tax basis differences
resulting primarily from differing treatments for net operating loss
reclassifications, foreign capital gains tax, foreign currency transactions,
discount accretion/premium amortization on debt securities, distribution
reclassifications, non-deductible merger fees, paydown reclassifications, REIT
adjustments, passive foreign investment company adjustments, redemption based
payments treated as dividend paid deduction and expired capital loss
carryforwards were identified and reclassified among the components of the
Funds' net assets as follows:
UNDISTRIBUTED
(OVERDISTRIBUTED)
ACCUMULATED ACCUMULATED
NET INVESTMENT NET REALIZED PAID-IN
INCOME (LOSS) GAIN (LOSS) CAPITAL
--------------------------------------------------
Columbia International Stock Fund ............................ $ (1,829,346) $(166,715,428) $ 168,544,774
Columbia Mid Cap Growth Fund ................................. 4,692,767 460,304 (5,153,071)
Columbia Small Cap Growth Fund I ............................. 2,978,014 -- (2,978,014)
Columbia Real Estate Equity Fund ............................. 1,355,846 (16,796,275) 15,440,429
Columbia Technology Fund ..................................... 640,721 (640,722) 1
Columbia Strategic Investor Fund ............................. (136,767) 9,209 127,558
Columbia Balanced Fund ....................................... 370,863 (370,863) --
Columbia Short Term Bond Fund ................................ 40,724 2,715 (43,439)
Columbia Fixed Income Securities Fund ........................ 1,122,356 (1,399,835) 277,479
Columbia Oregon Intermediate Municipal Bond Fund ............. (85,689) (87,395) 173,084
Columbia Conservative High Yield Fund ........................ 8,487,041 (8,487,041) --
Net investment income and net realized gains (losses), as disclosed on the
Statements of Operations, and net assets were not affected by these
reclassifications.
The tax character of distributions paid during the years ended August 31, 2005
and August 31, 2004 was as follows:
YEAR ENDED AUGUST 31, 2005
TAX-EXEMPT ORDINARY LONG-TERM
INCOME INCOME* CAPITAL GAINS TOTAL
----------------------------------------------------------------
Columbia International Stock Fund .............. $ -- $ 3,047,263 $ -- $ 3,047,263
Columbia Real Estate Equity Fund ............... -- 34,548,337 81,680,946 116,229,283
Columbia Strategic Investor Fund ............... -- 1,232,551 5,190,447 6,422,998
Columbia Balanced Fund ......................... -- 9,084,173 -- 9,084,173
Columbia Short Term Bond Fund .................. -- 14,268,236 -- 14,268,236
Columbia Fixed Income Securities Fund .......... -- 12,162,259 3,251,776 15,414,035
Columbia Oregon Intermediate Municipal
Bond Fund ................................... 16,838,804 226,449 952,497 18,017,750
Columbia Conservative High Yield Fund........... -- 103,244,359 -- 103,244,359
Columbia Daily Income Fund ..................... -- 9,837,179 -- 9,837,179
* For tax purposes short-term capital gains distributions, if any, are
considered ordinary income distributions.
143
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AUGUST 31, 2005 COLUMBIA FUNDS
YEAR ENDED AUGUST 31, 2004
TAX-EXEMPT ORDINARY LONG-TERM
INCOME INCOME* CAPITAL GAINS TOTAL
----------------------------------------------------------------
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 Oregon Intermediate Municipal
Bond Fund ................................... 18,792,984 95,636 5,369,297 24,257,917
Columbia Conservative 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.
As of August 31, 2005, the components of distributable earnings on a tax basis
were as follows:
UNDISTRIBUTED UNDISTRIBUTED UNDISTRIBUTED NET UNREALIZED
TAX-EXEMPT ORDINARY LONG-TERM APPRECIATION
INCOME INCOME CAPITAL GAINS (DEPRECIATION)*
----------------------------------------------------------------
Columbia International Stock Fund .............. $ -- $ 11,597,552 $ 13,876,238 $ 156,886,822
Columbia Mid Cap Growth Fund ................... -- -- 9,566,493 141,062,476
Columbia Small Cap Growth Fund I ............... -- -- 2,509,028 36,846,746
Columbia Real Estate Equity Fund ............... -- -- 76,354,375 351,353,374
Columbia Technology Fund ....................... -- 1,171,789 2,018,570 10,131,000
Columbia Strategic Investor Fund ............... -- 11,020,234 19,990,981 92,020,134
Columbia Balanced Fund ......................... -- 1,176,963 -- 18,739,118
Columbia Short Term Bond Fund .................. -- 1,070,606 -- (1,929,817)
Columbia Fixed Income Securities Fund .......... -- 782,382 595,999 2,873,816
Columbia Oregon Intermediate Municipal
Bond Fund ................................... 287,988 -- -- 22,850,817
Columbia Conservative High Yield Fund .......... -- 3,789,261 -- 8,532,733
Columbia Daily Income Fund ..................... -- 33,696 -- --
* The differences between book-basis and tax-basis net unrealized
appreciation (depreciation) are primarily due to deferral of losses from
wash sales and discount accretion/premium amortization on debt securities.
Unrealized appreciation and depreciation at August 31, 2005, based on cost of
investments for federal income tax purposes, and excluding any unrealized
appreciation and depreciation from changes in the value of other assets and
liabilities resulting from changes in exchange rates, was:
NET
UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
APPRECIATION DEPRECIATION (DEPRECIATION)
------------------------------------------------
Columbia International Stock Fund ............................ $165,117,421 $ (8,230,599) $ 156,886,822
Columbia Mid Cap Growth Fund ................................. 157,285,245 (16,222,769) 141,062,476
Columbia Small Cap Growth Fund I ............................. 44,038,801 (7,192,055) 36,846,746
Columbia Real Estate Equity Fund ............................. 358,177,571 (6,824,197) 351,353,374
Columbia Technology Fund ..................................... 10,749,451 (618,451) 10,131,000
Columbia Strategic Investor Fund ............................. 94,898,370 (2,878,236) 92,020,134
Columbia Balanced Fund ....................................... 25,157,765 (6,418,647) 18,739,118
Columbia Short Term Bond Fund ................................ 1,151,378 (3,081,195) (1,929,817)
Columbia Fixed Income Securities Fund ........................ 4,633,177 (1,759,361) 2,873,816
Columbia Oregon Intermediate Municipal Bond Fund ............. 22,989,403 (138,586) 22,850,817
Columbia Conservative High Yield Fund ........................ 23,670,651 (15,137,918) 8,532,733
144
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AUGUST 31, 2005 COLUMBIA FUNDS
The following capital loss carryforwards, determined as of August 31, 2005, 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 2013 TOTAL
--------- ----------- ----------- ------------ ------------ ----------- ----------- ------------
Columbia
International
Stock Fund ........ $ -- $ 2,960,252 $ 3,458,899 $123,580,370 $ 20,382,060 $ -- $ -- $150,381,581
Columbia Mid Cap
Growth Fund ....... -- -- 5,414,380 13,422,695 -- -- -- 18,837,075
Columbia Balanced
Fund .............. -- -- -- -- 19,909,041 10,165,186 -- 30,074,227
Columbia
Short Term
Bond Fund ......... 256,035 -- 1,103,186 -- -- -- 405,770 1,764,991
Columbia
Oregon Intermediate
Municipal
Bond Fund ......... -- -- -- -- -- -- 751,457 751,457
Columbia
Conservative
High Yield
Fund .............. -- -- -- -- 9,535,110 -- -- 9,535,110
Columbia Daily
Income
Company ........... -- -- -- -- -- 320 385 705
Of the capital loss carryforwards attributable to Columbia International Stock
Fund, $4,440,378 ($2,960,252 expiring August 31, 2007 and $1,480,126 expiring
August 31, 2008), $2,638,364 ($1,978,773 expiring August 31, 2008 and $659,591
expiring August 31, 2009) and $143,302,839 ($122,920,779 expiring August 31,
2009 and $20,382,060 expiring August 31, 2010) remain from the Columbia
International Stock Fund's merger with Liberty Newport International Equity
Fund, Stein Roe International Fund and Columbia International Equity Fund,
respectively. Total capital loss carryforwards acquired in the current year from
the Columbia International Equity Fund were $252,270,656, of which $83,010,689
were permanently lost and $25,957,128 were utilized to offset current year
gains. The availability of a portion of the remaining capital loss carryforwards
from the Columbia International Equity Fund may be limited in a given year.
Of the capital loss carryforwards attributable to Columbia Mid Cap Growth Fund,
$5,507,368 ($4,130,526 expiring August 31, 2008 and $1,376,842 expiring August
31, 2009) and $13,329,707 ($1,283,854 expiring August 31, 2008 and $12,045,853
expiring August 31, 2009) 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 August 31, 2006 and $1,103,186 expiring August 31,
2008) remain from the Columbia Short Term Bond Fund's merger with Galaxy Short
Term Bond Fund.
The following capital loss carryforwards were utilized or lost during the year
ended August 31, 2005:
Columbia International Stock Fund ...... $131,879,054
Columbia Mid Cap Growth Fund ........... 110,264,080
Columbia Small Cap Growth Fund I ....... 97,865,374
Columbia Technology Fund ............... 1,968,835
Columbia Balanced Fund ................. 36,095,807
Columbia Conservative
High Yield Fund .................... 6,755,468
Under current tax rules, certain currency and capital losses realized after
October 31 may be deferred and treated as occurring on the first day of the
following fiscal year. As of August 31, 2005, post-October currency losses and
capital losses attributed to security transactions were deferred to September 1,
2005, as follows:
CURRENCY CAPITAL
LOSSES LOSSES
-------- -----------
Columbia Mid Cap
Growth Fund .............. $ 99 $ --
Columbia Technology Fund ..... 5,295 --
Columbia Short Term
Bond Fund ................ -- 1,087,731
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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. On September 30, 2005,
Columbia Management Advisors, Inc. changed its name to Columbia Management
Advisors, LLC. Columbia receives a monthly investment advisory fee based on the
each Fund's average daily net assets at the following annual rates:
$200 MILLION $500 MILLION $1 BILLION $1.5 BILLION $3 BILLION
FIRST TO TO TO TO TO OVER
$200 MILLION $500 MILLION $1 BILLION $1.5 BILLION $3 BILLION $6 BILLION $6 BILLION
------------ ------------ ------------ ------------ ------------ ---------- ----------
Columbia International
Stock Fund 0.87% 0.87% 0.82% 0.77% 0.72% 0.70% 0.68%
Columbia Mid Cap
Growth Fund 0.82% 0.82% 0.75% 0.72% 0.67% 0.67% 0.67%
Columbia Small Cap
Growth Fund I 0.87% 0.87% 0.82% 0.77% 0.77% 0.77% 0.77%
Columbia Real Estate
Equity Fund 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75%
Columbia Technology Fund 0.87% 0.87% 0.82% 0.77% 0.77% 0.77% 0.77%
Columbia Strategic
Investor Fund 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75%
Columbia Balanced Fund 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
Columbia Short Term
Bond Fund 0.45% 0.45% 0.40% 0.40% 0.40% 0.40% 0.40%
Columbia Fixed Income
Securities Fund 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
Columbia Oregon
Intermediate Municipal
Bond Fund 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
Columbia Conservative
High Yield Fund 0.60% 0.60% 0.55% 0.52% 0.49% 0.49% 0.49%
Columbia Daily Income
Company 0.50% 0.50% 0.45% 0.40% 0.40% 0.40% 0.40%
Prior to November 1, 2004, Columbia received a monthly investment advisory fee
based on each Fund's average daily net assets at the following annual rates:
ANNUAL
FEE
RATE
--------
Columbia Small Cap Growth Fund I 1.00%
Columbia Real Estate Equity Fund 0.75%
Columbia Technology Fund 1.00%
Columbia Strategic Investor Fund 0.75%
Columbia Balanced Fund 0.50%
Columbia Short Term Bond Fund 0.50%
Columbia Fixed Income Securities Fund 0.50%
Columbia Oregon Intermediate
Municipal Bond Fund 0.50%
Columbia Conservative High Yield Fund 0.60%
FIRST $200 MILLION $500 MILLION
$200 TO TO OVER
MILLION $500 MILLION $1 BILLION $1 BILLION
-------- ------------ ------------ -----------
Columbia
International
Stock Fund 1.00% 1.00% 0.95% 0.90%
Columbia
Mid Cap
Growth Fund 1.00% 1.00% 0.75% 0.75%
Columbia
Daily Income
Company 0.50% 0.50% 0.45% 0.40%
Columbia had voluntarily agreed to waive a portion of its investment advisory
fee for the Columbia International Stock Fund at the annual rate of 0.10% of the
Fund's average daily net assets for the period September 1, 2004 through October
31, 2004. The annualized effective rate of this waiver is 0.01%.
146
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For the year ended August 31, 2005, the effective investment advisory fee rates
for the Funds were as follows:
EFFECTIVE
FEE RATE
---------
Columbia International Stock Fund 0.85%
Columbia Mid Cap Growth Fund 0.81%
Columbia Small Cap Growth Fund I 0.91%
Columbia Real Estate Equity Fund 0.75%
Columbia Technology Fund 0.89%
Columbia Strategic Investor Fund 0.75%
Columbia Balanced Fund 0.50%
Columbia Short Term Bond Fund 0.46%
Columbia Fixed Income Securities Fund 0.50%
Columbia Oregon Intermediate
Municipal Bond Fund 0.50%
Columbia Conservative High Yield Fund 0.56%
Columbia Daily Income Company 0.49%
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.
Under its pricing, bookkeeping and fund administration agreement with the Funds,
Columbia receives from each Fund an annual financial accounting fee of $25,000,
an annual 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 year ended August 31, 2005, the effective
pricing and bookkeeping fee rates for the Funds, inclusive of out-of-pocket
expenses, were as follows:
Columbia International Stock Fund 0.021%
Columbia Mid Cap Growth Fund 0.019%
Columbia Small Cap Growth Fund I 0.038%
Columbia Real Estate Equity Fund 0.018%
Columbia Technology Fund 0.136%
Columbia Strategic Investor Fund 0.035%
Columbia Balanced Fund 0.040%
Columbia Short Term Bond Fund 0.035%
Columbia Fixed Income Securities Fund 0.047%
Columbia Oregon Intermediate
Municipal Bond Fund 0.040%
Columbia Conservative High Yield Fund 0.011%
Columbia Daily Income Company 0.028%
TRANSFER AGENT FEE
Columbia Management Services, Inc. (the "Transfer Agent"), formerly Columbia
Funds Services, Inc., an affiliate of Columbia, provides shareholder services to
the Funds and has contracted 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 effective transfer agent fee rates, inclusive of out of pocket expenses, for
the year ended August 31, 2005 are as follows:
PER OPEN
ACCOUNT ANNUALIZED
FEE RATE FEE RATE
-------- ----------
Columbia International
Stock Fund $28.00 0.11%
Columbia Mid Cap
Growth Fund $28.00 0.15%
Columbia Small Cap
Growth Fund I $28.00 0.14%
Columbia Real Estate
Equity Fund $28.00 0.12%
Columbia Technology Fund $28.00 0.33%
Columbia Strategic
Investor Fund $28.00 0.16%
Columbia Balanced Fund $28.00 0.16%
Columbia Short Term
Bond Fund $34.00 0.08%
Columbia Fixed Income
Securities Fund $34.00 0.18%
Columbia Oregon
Intermediate Municipal
Bond Fund $34.00 0.06%
Columbia Conservative
High Yield Fund $34.00 0.09%
Columbia Daily
Income Company $33.50 0.21%
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 year ended August 31, 2005, the
effective fee rates after fee waivers for the Columbia International Stock Fund,
Columbia Mid Cap Growth Fund and Columbia Strategic Investor Fund were 0.03%,
0.10% and 0.13%, respectively.
147
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UNDERWRITING DISCOUNTS, SERVICE AND DISTRIBUTION FEES
Columbia Management Distributors, Inc. (the "Distributor"), formerly Columbia
Funds Distributor, Inc., an affiliate of Columbia, is the principal underwriter
of the Funds. For the year ended August 31, 2005, the Distributor has retained
net underwriting discounts and net CDSC fees as follows:
FRONT-END
SALES CHARGE CDSC
------------------- ---------------------------------------------------------------
CLASS A CLASS T CLASS A CLASS B CLASS C CLASS D CLASS G CLASS T
-------- -------- -------- -------- -------- -------- -------- --------
Columbia International
Stock Fund ........... $ 6,287 $ -- $ 3 $ 24,029 $ 773 $ 61 $ -- $ --
Columbia Mid Cap
Growth Fund .......... 8,640 185 -- 12,755 774 14 1,030 --
Columbia Real Estate
Equity Fund .......... 27,593 -- 1,889 41,433 1,002 353 -- --
Columbia Technology Fund . 9,699 -- -- 22,029 1,437 -- -- --
Columbia Strategic
Investor Fund ........ 157,605 -- 3,199 93,114 3,229 -- -- --
Columbia Balanced Fund ... 3,854 -- -- 21,461 157 -- -- --
Columbia Short Term
Bond Fund ............ 3,230 -- 6,034 113,820 2,139 -- 6,392 --
Columbia Fixed Income
Securities Fund ...... 1,523 -- -- 12,579 376 158 -- --
Columbia Oregon
Intermediate Municipal
Bond Fund ............ 2,219 -- -- 1,561 222 -- -- --
Columbia Conservative
High Yield Fund ...... 32,709 -- 23,132 325,296 5,183 1,389 -- --
148
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AUGUST 31, 2005 COLUMBIA FUNDS
The Funds have adopted a 12b-1 plan (the "Plan") which allows 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 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 Oregon Intermediate
Municipal Bond Fund .......................... 0.10% 0.75% 0.75% 0.75% --
Columbia Conservative 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 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 Oregon Intermediate
Municipal Bond Fund .......................... 0.25% 0.25% 0.25% 0.25% --
Columbia Conservative High Yield Fund ............ 0.25% 0.25% 0.25% 0.25% --
(a) The Funds' Board of Trustees currently limits combined 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 the combined fee does not 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 administration support fees.
(c) The Distributor has contractually agreed to limit a portion of the Class G
distribution and service fees so that the combined fee does not 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 administration support fees.
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AUGUST 31, 2005 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 Oregon Intermediate Municipal
Bond Fund ......................................... 0.65%
Columbia Conservative 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)
will 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%
CUSTODY CREDITS
Each Fund has an agreement with its custodian bank under which custody fees may
be reduced by balance credits. These credits are recorded as a reduction of
total expenses on the Statements of Operations. The Funds could have invested a
portion of the assets utilized in connection with the expense offset arrangement
in an income-producing asset if they had not entered into such an agreement.
FEES PAID TO OFFICERS AND DIRECTORS
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 appointed a Chief Compliance Officer to the Funds in accordance with
federal securities regulations. Each Fund, along with other affiliated funds,
pays its pro-rata share of the expenses associated with the Chief Compliance
Officer position. Each Fund's fee 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 year ended August 31, 2005, the Funds paid fees to Columbia
for such services as follows:
Columbia International Stock Fund ................... $ 2,189
Columbia Mid Cap Growth Fund ........................ 2,392
Columbia Small Cap Growth Fund I .................... 1,815
Columbia Real Estate Equity Fund .................... 2,495
Columbia Technology Fund ............................ 1,547
Columbia Strategic Investor Fund .................... 1,987
Columbia Balanced Fund .............................. 1,934
Columbia Short Term Bond Fund ....................... 2,015
Columbia Fixed Income Securities Fund ............... 1,804
Columbia Oregon Intermediate Municipal
Bond Fund ......................................... 1,928
Columbia Conservative High Yield Fund ............... 3,286
Columbia Daily Income Company ....................... 2,073
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AUGUST 31, 2005 COLUMBIA FUNDS
NOTE 5. PORTFOLIO INFORMATION
For the year ended August 31, 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 International Stock Fund ...................... $ -- $ -- $544,021,492 $ 662,939,219
Columbia Mid Cap Growth Fund ........................... -- -- 865,585,333 1,111,514,415
Columbia Small Cap Growth Fund I ....................... -- -- 344,772,635 767,646,324
Columbia Real Estate Equity Fund ....................... -- -- 86,826,964 324,210,412
Columbia Technology Fund ............................... -- -- 158,101,615 146,213,645
Columbia Strategic Investor Fund ....................... -- -- 287,731,763 285,906,389
Columbia Balanced Fund ................................. 56,941,019 73,535,650 183,762,417 375,580,282
Columbia Short Term Bond Fund .......................... 128,855,359 98,049,667 82,290,258 162,038,807
Columbia Fixed Income Securities Fund .................. 112,330,513 134,271,885 18,745,497 83,421,533
Columbia Oregon Intermediate Municipal Bond Fund ....... -- -- 36,800,216 56,210,795
Columbia Conservative High Yield Fund .................. -- -- 623,950,675 698,261,365
For the year ended August 31, 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 850 149,445
Options Closed (610) (108,367)
Options Exercised (200) (37,398)
--------- ----------
Options Outstanding
at August 31, 2005 40 $ 3,680
--------- ----------
NOTE 6. OTHER RELATED PARTY TRANSACTIONS
During the year ended August 31, 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,
Class D and Class G shares who redeem shares held for 60 days or less. Class G
shares were initially offered on March 18, 2005. 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 year ended August 31, 2005, the redemption
fees for the Class A, Class B, Class C, Class D, Class G and Class Z shares of
the Columbia International Stock Fund amounted to $2,756, $954, $63, $67, $47
and $57,287, respectively.
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AUGUST 31, 2005 COLUMBIA FUNDS
NOTE 8. OTHER
During the year ended August 31, 2005, the Columbia Small Cap Growth Fund I
experienced a loss of $2,548 due to a violation of borrowing limitations. The
Fund is in the process of being reimbursed by Columbia.
During the year ended August 31, 2005, the Columbia Fixed Income Securities Fund
purchased U.S. Treasury futures contracts in violation of investment
restrictions. This position was subsequently sold off at a gain of $236.
NOTE 9. 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 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 year ended August 31, 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 year ended August 31, 2005, the average daily loan balance outstanding
on days where borrowings existed for the Columbia Small Cap Growth Fund I was
$16,166,667 at a weighted average interest rate of 2.77%.
For the year ended August 31, 2005, the Funds, other than the Columbia Mid Cap
Growth Fund and Columbia Small Cap Growth Fund I, did not borrow under this
arrangement.
NOTE 10. SHARES OF BENEFICIAL INTEREST
As of August 31, 2005, the Funds had shareholders whose shares were beneficially
owned by participant accounts over which Bank of America 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 International
Stock Fund ..................... 1 79.3%
Columbia Mid Cap Growth
Fund ........................... 2 22.3%
Columbia Real Estate
Equity Fund .................... 1 23.0%
Columbia Strategic Investor
Fund ........................... 1 5.3%
Columbia Short Term
Bond Fund ...................... 1 68.5%
Columbia Fixed Income
Securities Fund ................ 2 0.1%
Columbia Conservative
High Yield Fund ................ 1 37.1%
As of August 31, 2005, several of the Funds had shareholders that held greater
than 5% of the shares outstanding. Subscription and redemption activity of these
accounts may have a significant effect on the operations of the Funds. The
number 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 Mid Cap
Growth Fund .................... 2 32.5%
Columbia Small Cap
Growth Fund I .................. 2 18.0%
Columbia Real Estate
Equity Fund .................... 1 22.0%
Columbia Technology Fund .......... 2 24.2%
Columbia Strategic Investor
Fund ........................... 1 12.8%
Columbia Fixed Income
Securities Fund ................ 1 13.4%
Columbia Oregon Intermediate
Municipal Bond Fund ............ 1 7.5%
Columbia Conservative
High Yield Fund ................ 2 19.0%
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AUGUST 31, 2005 COLUMBIA FUNDS
NOTE 11. DISCLOSURE OF SIGNIFICANT RISKS AND CONTINGENCIES
CONCENTRATION OF CREDIT RISK
Columbia Oregon Intermediate Municipal Bond Fund holds 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. The
insurers are rated Aaa by Moody's Investors Services, Inc.
At August 31, 2005, private insurers who insured greater than 5% of the total
investments of the Columbia Oregon Intermediate Municipal Bond Fund were as
follows:
% OF TOTAL
INSURER INVESTMENTS
--------------------------- -----------
Financial Guaranty Insurance Co. 13.8%
Financial Security Assurance, Inc. 12.4%
MBIA Insurance Corp. 11.8%
Ambac Assurance Corp. 7.1%
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.
GEOGRAPHIC CONCENTRATION
Columbia Oregon Intermediate Municipal Bond Fund has greater than 5% of its
total investments on August 31, 2005 invested in debt obligations issued by the
state of Oregon and its political subdivisions, agencies and public authorities.
This Fund is more susceptible to economic and political factors adversely
affecting issuers of the state's 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
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 Intermediate Municipal Bond Fund may
invest a greater percentage of their 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 Management Advisors, Inc. (which has since merged
into Banc of America Capital Management, LLC) ("Columbia") and Columbia Funds
Distributor, Inc. (which has been renamed Columbia Management Distributors, Inc.
(the "Distributor") (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
153
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AUGUST 31, 2005 COLUMBIA FUNDS
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 to reduce certain Columbia Funds (including the
former Nations Funds) and other mutual funds 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 Fund's independent trustees and not unacceptable to
the staff of the SEC. At this time, the distribution plan is still under
development. As such, any gain to the Fund or its shareholders can not currently
be determined.
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.
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, the Trustees of the Columbia Funds,
FleetBoston Financial Corporation and its affiliated entities and/or Bank of
America Corporation and its affiliated entities. More than 300 cases including
those filed against entities unaffiliated with the funds, their Boards,
FleetBoston Financial Corporation and its affiliated entities and/or Bank of
America Corporation and its affiliated entities have been transferred to the
Federal District Court in Maryland and consolidated in a multi-district
proceeding (the "MDL").
The derivative cases purportedly brought on behalf of the Columbia Funds in the
MDL have been consolidated under the lead case. The fund derivative plaintiffs
allege that the funds were harmed by market timing and late trading activity and
seek, among other things, removal of the trustees of the Columbia Funds, removal
of the Columbia Group, disgorgement of all management fees and monetary damages.
The MDL is ongoing. Accordingly, an estimate of the financial impact of this
litigation on any Fund, if any, can not currently be made.
On March 21, 2005 purported class action plaintiffs filed suit in Massachusetts
state court alleging that the conduct, including market timing, entitles Class B
shareholders in certain Columbia funds to an exemption from contingent deferred
sales charges upon early redemption ("the CDSC Lawsuit"). The CDSC Lawsuit has
been removed to federal court in Massachusetts and the federal Judicial Panel
has transferred the CDSC Lawsuit to the MDL.
On January 11, 2005, a putative class action lawsuit was filed in federal
district court in Massachusetts against, among others, the Trustees of the
Columbia 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.
In 2004, certain Columbia Funds, the Trustees of the Columbia Funds, advisers
and affiliated entities were named as defendants in certain purported
shareholder class and derivative actions making claims, including claims under
the Investment Company and the
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AUGUST 31, 2005 COLUMBIA FUNDS
Investment Advisers Acts of 1940 and state law. The suits seek damages and
allege, inter alia, that the fees and expenses paid by the funds are excessive
and that the advisers and their affiliates inappropriately used fund assets to
distribute the funds and for other improper purpose. On March 2, 2005, the
actions were consolidated in the Massachusetts federal court as IN RE COLUMBIA
ENTITIES LITIGATION. The plaintiffs filed a consolidated amended complaint on
June 9, 2005.
The Fund 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 Fund.
For the year ended August 31, 2005, Columbia has assumed legal, consulting
services and Trustees' fees incurred by the Funds in connection with these
matters as follows:
Columbia International Stock Fund ........... $ 14,905
Columbia Mid Cap Growth Fund ................ 15,365
Columbia Small Cap Growth Fund I ............ 4,923
Columbia Real Estate Equity Fund ............ 16,146
Columbia Technology Fund .................... 827
Columbia Strategic Investor Fund ............ 8,869
Columbia Balanced Fund ...................... 6,932
Columbia Short Term Bond Fund ............... 8,860
Columbia Fixed Income Securities Fund ....... 5,158
Columbia Oregon Intermediate Municipal
Bond Fund ................................. 7,693
Columbia Conservative High Yield Fund ....... 30,949
NOTE 12. BUSINESS COMBINATIONS & MERGERS
FUND MERGERS
On March 18, 2005, the Columbia International Equity Fund, a series of a
separate Massachusetts business trust, merged into the Columbia International
Stock Fund. The Columbia International Stock Fund received a tax-free transfer
of assets from the Columbia International Equity Fund as follows:
SHARES NET ASSETS UNREALIZED
ISSUED RECEIVED APPRECIATION 1
------ ---------- --------------
30,878,363 $477,143,320 $ 62,414,535
NET ASSETS NET ASSETS
NET ASSETS OF COLUMBIA OF COLUMBIA
OF COLUMBIA INTERNATIONAL INTERNATIONAL
INTERNATIONAL EQUITY FUND STOCK FUND
STOCK FUND IMMEDIATELY IMMEDIATELY
PRIOR TO PRIOR TO AFTER
COMBINATION COMBINATION COMBINATION
------------- ------------- --------------
$678,273,286 $477,143,320 $1,155,416,606
1 Unrealized appreciation is included in the Net Assets Received amount
shown above.
NOTE 13. PROPOSED REORGANIZATIONS
On May 4, 2005, the Board of Trustees approved a proposal to merge the Columbia
Daily Income Company Fund into the Nations Cash Reserves. The proposal is
subject to approval by shareholders of the Fund and the satisfaction of certain
other conditions. If approved, the merger is expected to be completed in the
fourth quarter of 2005.
NOTE 14. SUBSEQUENT EVENT
On September 23, 2005, the Columbia Short Term Bond Fund merged with the Nations
Short-Term Income Fund and the Nations Short-Term Income Fund was renamed
Columbia Short Term Bond Fund. On October 7, 2005, the Columbia Fixed Income
Securities Fund merged with Columbia Total Return Bond Fund.
155
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA INTERNATIONAL STOCK FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED
--------------------------- 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) 0.25 0.01 0.04 (0.02)
Net realized and unrealized gain on investments and
foreign currency, net of foreign capital gains tax 2.47 1.69 1.25 0.03
---------- ---------- ---------- -----------
Total from investment operations 2.72 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 $ 15.76 $ 13.04 $ 11.34 $ 10.05
Total return (e) 20.89%(f) 14.99%(f) 12.84%(g) 0.10%(g)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 71,270 $ 24,119 $ 21,664 $ 20,178
Ratio of expenses to average net assets (h) 1.25% 1.72% 1.90%(i) 1.86%(i)
Ratio of net investment income (loss) to average net assets (h) 1.71% 0.10% 0.61%(i) (0.39)%(i)
Waiver 0.09% 0.09% -- --
Portfolio turnover rate 66% 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 all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(f) Had the Investment Advisor and/or Transfer Agent 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.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED
--------------------------- 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 income (loss) (c) 0.07 (0.09) (0.03) (0.05)
Net realized and unrealized gain on investments and
foreign currency, net of foreign capital gains tax 2.49 1.67 1.24 0.03
---------- ---------- ---------- -----------
Total from investment operations 2.56 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 $ 15.37 $ 12.81 $ 11.23 $ 10.02
Total return (e)(f) 19.98% 14.07% 12.08%(g) (0.20)%(g)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 12,026 $ 10,221 $ 10,316 $ 10,920
Ratio of expenses to average net assets (h) 2.01% 2.50% 2.98%(i) 3.64%(i)
Ratio of net investment income (loss) to average net assets (h) 0.47% (0.69)% (0.47)%(i) (2.17)%(i)
Waiver 0.10% 0.18% 0.11%(i) 0.11%(i)
Portfolio turnover rate 66% 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 and/or Transfer Agent 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.
156
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA INTERNATIONAL STOCK FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED PERIOD ENDED
AUGUST 31, AUGUST 31,
CLASS C SHARES 2005 2004 (a)
- --------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.86 $ 12.27
- --------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b) 0.07 (0.01)
Net realized and unrealized gain on investments and foreign currency,
net of foreign capital gains tax 2.50 0.60
---------- ------------
Total from investment operations 2.57 0.59
- --------------------------------------------------------------------------------------------------------------
REDEMPTION FEES:
Redemption fees added to paid-in-capital (b)(c) -- --
- --------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 15.43 $ 12.86
Total return (d)(e) 19.98% 4.81%(f)
- --------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 904 $ 632
Ratio of expenses to average net assets (g) 2.01% 2.11%(h)
Ratio of net investment income (loss) to average net assets (g) 0.46% (0.05)%(h)
Waiver 0.10% 0.35%(h)
Portfolio turnover rate 66% 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 and/or Transfer Agent 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.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED
--------------------------- 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) 0.06 (0.04) --(d) (0.04)
Net realized and unrealized gain on investments and
foreign currency, net of foreign capital gains tax 2.51 1.68 1.25 0.02
---------- ---------- ---------- -----------
Total from investment operations 2.57 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 $ 15.48 $ 12.91 $ 11.27 $ 10.02
Total return (e)(f) 19.91% 14.55% 12.48%(g) (0.20)%(g)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 740 $ 738 $ 633 $ 542
Ratio of expenses to average net assets (h) 2.01% 2.10% 2.49%(i) 3.48%(i)
Ratio of net investment income (loss) to average net assets (h) 0.40% (0.27)% 0.02%(i) (2.01)%(i)
Waiver 0.10% 0.57% 0.75%(i) 0.75%(i)
Portfolio turnover rate 66% 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 and/or Transfer Agent 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.
157
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA INTERNATIONAL STOCK FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD
PERIOD ENDED
AUGUST 31,
CLASS G SHARES 2005 (a)
- ------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.06
- ------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b) 0.12
Net realized and unrealized gain on investments and foreign currency,
net of foreign capital gains tax 0.19
------------
Total from investment operations 0.31
- ------------------------------------------------------------------------------------
REDEMPTION FEES:
Redemption fees added to paid-in-capital (b)(c) --
- ------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 15.37
Total return (d)(e)(f) 2.06%
- ------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 4,015
Ratio of expenses to average net assets (g)(h) 1.93%
Ratio of net investment income to average net assets (g)(h) 0.81%
Waiver (h) 0.08%
Portfolio turnover rate 66%
- ------------------------------------------------------------------------------------
(a) Class G shares were initially offered on March 18, 2005. 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 and/or Transfer Agent 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.
158
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA INTERNATIONAL STOCK FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED YEAR ENDED AUGUST 31,
------------------------- AUGUST 31, -------------------------------------
CLASS Z SHARES 2005 2004 2003 (a) 2002 (b) 2001 2000
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.14 $ 11.40 $ 10.05 $ 12.03 $ 14.77 $ 22.81
- ----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.25(c) 0.11(c) 0.07(c) --(c)(d) 0.01 (0.04)
Net realized and unrealized gain (loss)
on investments and foreign currency,
net of foreign capital gains tax 2.53 1.67 1.27 (1.94) (2.74) (5.17)
--------- --------- --------- ---------- --------- --------
Total from investment operations 2.78 1.78 1.34 (1.94) (2.73) (5.21)
- ----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.07) (0.04) -- (0.01) (0.01) --
From net realized gains -- -- -- -- -- (2.83)
Return of capital -- -- -- (0.03) -- --
--------- --------- --------- ---------- --------- --------
Total distributions (0.07) (0.04) -- (0.04) (0.01) (2.83)
- ----------------------------------------------------------------------------------------------------------------------------------
REDEMPTION FEES:
Redemption fees added to paid-in-capital --(c)(d) --(c)(d) 0.01(c) -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 15.85 $ 13.14 $ 11.40 $ 10.05 $ 12.03 $ 14.77
Total return (e) 21.20%(f) 15.65%(f) 13.43%(f)(g) (16.10)%(f) (18.47)% (22.64)%
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 964,495 $ 558,082 $ 248,718 $ 143,332 $ 135,626 $175,316
Ratio of expenses to average net assets (h) 1.00% 1.10% 1.47%(i) 1.49% 1.56% 1.42%
Ratio of net investment income (loss)
to average net assets (h) 1.71% 0.81% 1.03%(i) (0.02)% 0.06% (0.19)%
Waiver 0.10% 0.18% 0.12%(i) 0.12% -- --
Portfolio turnover rate 66% 90% 43%(g) 96% 130% 112%
- ----------------------------------------------------------------------------------------------------------------------------------
(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 and/or Transfer Agent not waived a portion of
expenses, total return would have been reduced.
(g) Not annualized.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
159
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA MID CAP GROWTH FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED
--------------------------- 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) (0.15) (0.23) (0.14) (0.02)
Net realized and unrealized gain (loss) on investments
and foreign currency 5.32 (0.87) 3.46 (0.36)
---------- ---------- ---------- -----------
Total from investment operations 5.17 (1.10) 3.32 (0.38)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 22.16 $ 16.99 $ 18.09 $ 14.77
Total return (d)(e) 30.43% (6.08)% 22.48%(f) (2.51)%(f)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 6,078 $ 4,432 $ 4,525 $ 1,180
Ratio of operating expenses to average net assets (g) 1.23% 1.53% 1.60%(h) 1.49%(h)
Ratio of interest expense to average net assets --%(i) -- -- --
Ratio of total expenses to average net assets (g) 1.23% 1.53% 1.60%(h) 1.49%(h)
Ratio of net investment loss to average net assets (g) (0.76)% (1.21)% (1.31)%(h) (1.22)%(h)
Waiver 0.05% 0.02% 0.01%(h) 0.01%(h)
Portfolio turnover rate 104% 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%.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED
--------------------------- 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) (0.30) (0.36) (0.22) (0.04)
Net realized and unrealized gain (loss) on investments
and foreign currency 5.24 (0.87) 3.44 (0.35)
---------- ---------- ---------- -----------
Total from investment operations 4.94 (1.23) 3.22 (0.39)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 21.69 $ 16.75 $ 17.98 $ 14.76
Total return (d)(e) 29.49% (6.84)% 21.82%(f) (2.57)%(f)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 6,377 $ 5,079 $ 4,242 $ 3,383
Ratio of operating expenses to average net assets (g) 1.98% 2.29% 2.36%(h) 2.32%(h)
Ratio of interest expense to average net assets --%(i) -- -- --
Ratio of total expenses to average net assets (g) 1.98% 2.29% 2.36%(h) 2.32%(h)
Ratio of net investment loss to average net assets (g) (1.51)% (1.97)% (2.06)%(h) (2.05)%(h)
Waiver 0.05% 0.10% 0.12%(h) 0.12%(h)
Portfolio turnover rate 104% 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%.
160
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA MID CAP GROWTH FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED PERIOD ENDED
AUGUST 31, 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) (0.30) (0.30)
Net realized and unrealized gain (loss) on investments and foreign currency 5.25 (0.79)
---------- ------------
Total from investment operations 4.95 (1.09)
- --------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 21.74 $ 16.79
Total return (c)(d) 29.48% (6.10)%(e)
- --------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 674 $ 501
Ratio of operating expenses to average net assets (f) 1.98% 2.18%(g)
Ratio of interest expense to average net assets --%(h) --
Ratio of total expenses to average net assets (f) 1.98% 2.18%(g)
Ratio of net investment loss to average net assets (f) (1.52)% (1.83)%(g)
Waiver 0.05% 0.08%(g)
Portfolio turnover rate 104% 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%.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED
--------------------------- 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) (0.30) (0.34) (0.21) (0.04)
Net realized and unrealized gain (loss) on investments
and foreign currency 5.24 (0.87) 3.43 (0.35)
---------- ---------- ---------- -----------
Total from investment operations 4.94 (1.21) 3.22 (0.39)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 21.71 $ 16.77 $ 17.98 $ 14.76
Total return (d)(e) 29.46% (6.73)% 21.82%(f) (2.57)%(f)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 438 $ 599 $ 737 $ 433
Ratio of operating expenses to average net assets (g) 1.98% 2.19% 2.27%(h) 2.32%(h)
Ratio of interest expense to average net assets --%(i) -- -- --
Ratio of total expenses to average net assets (g) 1.98% 2.19% 2.27%(h) 2.32%(h)
Ratio of net investment loss to average net assets (g) (1.54)% (1.87)% (1.97)%(h) (2.05)%(h)
Waiver 0.05% 0.08% 0.09%(h) 0.09%(h)
Portfolio turnover rate 104% 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%.
161
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA MID CAP GROWTH FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED
--------------------------- 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) (0.29) (0.41) (0.23) (0.04)
Net realized and unrealized gain (loss) on investments
and foreign currency 5.22 (0.87) 3.44 (0.34)
---------- ---------- ---------- -----------
Total from investment operations 4.93 (1.28) 3.21 (0.38)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 21.63 $ 16.70 $ 17.98 $ 14.77
Total return (d) 29.52%(e) (7.12)%(e) 21.73%(f) (2.51)%(f)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 724 $ 647 $ 806 $ 753
Ratio of operating expenses to average net assets (g) 1.93% 2.57% 2.47%(h) 2.35%(h)
Ratio of interest expense to average net assets --%(i) -- -- --
Ratio of total expenses to average net assets (g) 1.93% 2.57% 2.47%(h) 2.35%(h)
Ratio of net investment loss to average net assets (g) (1.47)% (2.25)% (2.17)%(h) (2.08)%(h)
Waiver 0.05% 0.01% -- --
Portfolio turnover rate 104% 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%.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED
--------------------------- 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) (0.16) (0.22) (0.12) (0.02)
Net realized and unrealized gain (loss) on investments
and foreign currency 5.33 (0.87) 3.45 (0.34)
---------- ---------- ---------- ----------
Total from investment operations 5.17 (1.09) 3.33 (0.36)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 22.20 $ 17.03 $ 18.12 $ 14.79
Total return (d) 30.36%(e) (6.02)%(e) 22.52%(f) (2.38)%(f)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 27,969 $ 25,236 $ 29,920 $ 25,966
Ratio of operating expenses to average net assets (g) 1.28% 1.50% 1.46%(h) 1.45%(h)
Ratio of interest expense to average net assets --%(i) -- -- --
Ratio of total expenses to average net assets (g) 1.28% 1.50% 1.46%(h) 1.45%(h)
Ratio of net investment loss to average net assets (g) (0.82)% (1.19)% (1.16)%(h) (1.18)%(h)
Waiver 0.05% 0.01% -- --
Portfolio turnover rate 104% 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%.
162
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA MID CAP GROWTH FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED YEAR ENDED DECEMBER 31,
------------------------ AUGUST 31, -------------------------------------
CLASS Z SHARES 2005 2004 2003 (a) 2002 (b) 2001 2000
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 17.14 $ 18.17 $ 14.79 $ 19.60 $ 25.99 $ 29.93
- --------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.10)(c) (0.14)(c) (0.08)(c) (0.13)(c) (0.11) (0.10)
Net realized and unrealized gain (loss)
on investments and foreign currency 5.37 (0.89) 3.46 (4.68) (5.35) 4.45
--------- --------- ----------- ---------- --------- ----------
Total from investment operations 5.27 (1.03) 3.38 (4.81) (5.46) 4.35
- --------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net realized gains -- -- -- -- (0.93) (8.29)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 22.41 $ 17.14 $ 18.17 $ 14.79 $ 19.60 $ 25.99
Total return (d) 30.75%(e) (5.67)%(e) 22.85%(e)(f) (24.54)%(e) (20.98)% 13.84%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 799,505 $ 825,988 $ 998,943 $ 807,342 $ 786,071 $1,095,525
Ratio of operating expenses to average
net assets (g) 0.98% 1.07% 1.09%(h) 1.12% 1.08% 0.99%
Ratio of interest expense to average net
assets --%(i) -- -- -- -- --
Ratio of total expenses to average
net assets (g) 0.98% 1.07% 1.09%(h) 1.12% 1.08% 0.99%
Ratio of net investment loss to average
net assets (g) (0.52)% (0.75)% (0.80)%(h) (0.85)% (0.49)% (0.38)%
Waiver 0.05% 0.05% 0.05%(h) 0.05% -- --
Portfolio turnover rate 104% 139% 78%(f) 88% 186% 169%
- --------------------------------------------------------------------------------------------------------------------------------
(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%.
163
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA SMALL CAP GROWTH FUND I
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED YEAR ENDED DECEMBER 31,
------------------------ AUGUST 31, -------------------------------------
CLASS Z SHARES 2005 2004 2003 (a) 2002 (b) 2001 2000
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 21.32 $ 21.62 $ 16.30 $ 22.20 $ 25.87 $ 27.26
- --------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.24)(c) (0.24)(c) (0.13)(c) (0.17)(c) (0.13) (0.10)
Net realized and unrealized gain (loss)
on investments 6.72 (0.06) 5.45 (5.73) (3.54) 1.75
--------- --------- ----------- ---------- --------- ----------
Total from investment operations 6.48 (0.30) 5.32 (5.90) (3.67) 1.65
- --------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net realized gains -- -- -- -- -- (3.04)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 27.80 $ 21.32 $ 21.62 $ 16.30 $ 22.20 $ 25.87
Total return (d) 30.39%(e) (1.39)% 32.64%(f) (26.58)% (14.19)% 5.85%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 214,659 $ 543,016 $ 637,616 $ 493,031 $ 617,966 $ 518,970
Ratio of operating expenses to average
net assets (g) 1.16% 1.18% 1.28%(h) 1.24% 1.23% 1.22%
Ratio of interest expense to average
net assets --%(i) -- -- -- -- --
Ratio of total expenses to average
net assets (g) 1.16% 1.18% 1.28%(h) 1.24% 1.23% 1.22%
Ratio of net investment loss to average
net assets (g) (0.99)% (1.01)% (1.09)%(h) (0.90)% (0.71)% (0.44)%
Portfolio turnover rate 114% 118% 79%(f) 109% 129% 145%
- --------------------------------------------------------------------------------------------------------------------------------
(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) Total return includes a reimbursement of loss experienced by the Fund due
to compliance violation. This reimbursement had an impact of less than
0.01% on the Fund's total return.
(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%.
164
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA REAL ESTATE EQUITY FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED
--------------------------- 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) 0.79(d) 0.77 0.36(e) 0.26
Net realized and unrealized gain on investments 4.73 4.67 3.11(e) 0.78
---------- ---------- ---------- -----------
Total from investment operations 5.52 5.44 3.47 1.04
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.75) (0.70) (0.23) (0.25)
From net realized gains (2.52) (0.19) -- --
---------- ---------- ---------- -----------
Total distributions (3.27) (0.89) (0.23) (0.25)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 27.84 $ 25.59 $ 21.04 $ 17.80
Total return (f) 22.65% 26.42% 19.62%(g) 6.10%(g)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 45,756 $ 32,703 $ 12,364 $ 905
Ratio of expenses to average net assets (h) 1.18% 1.20% 1.55%(i) 1.43%(i)
Ratio of net investment income to average net assets (h) 2.98% 3.27% 2.70%(e)(i) 4.81%(i)
Portfolio turnover rate 10% 28% 33%(g) 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) Net investment income per share reflects a special dividend. The effect of
this dividend amounted to $0.24 per share.
(e) 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 the period prior to August 31, 2003 have not been
restated to reflect this change in policy.
(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.
165
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA REAL ESTATE EQUITY FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED
--------------------------- 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) 0.60(d) 0.58 0.24(e) 0.22
Net realized and unrealized gain on investments 4.73 4.70 3.12(e) 0.81
---------- ---------- ---------- -----------
Total from investment operations 5.33 5.28 3.36 1.03
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.56) (0.52) (0.15) (0.22)
From net realized gains (2.52) (0.19) -- --
---------- ---------- ---------- -----------
Total distributions (3.08) (0.71) (0.15) (0.22)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 27.85 $ 25.60 $ 21.03 $ 17.82
Total return (f) 21.74% 25.53% 18.97%(g) 6.09%(g)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 14,393 $ 11,234 $ 4,776 $ 1,074
Ratio of expenses to average net assets (h) 1.93% 1.98% 2.37%(i) 2.18%(i)
Ratio of net investment income to average net assets (h) 2.26% 2.47% 1.86%(e)(i) 4.06%(i)
Portfolio turnover rate 10% 28% 33%(g) 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) Net investment income per share reflects a special dividend. The effect of
this dividend amounted to $0.24 per share.
(e) 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 the period prior to August 31, 2003 have not been
restated to reflect this change in policy.
(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.
166
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA REAL ESTATE EQUITY FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED PERIOD ENDED
AUGUST 31, 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) 0.55(c) 0.41
Net realized and unrealized gain on investments 4.78 3.72
---------- ------------
Total from investment operations 5.33 4.13
- -------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.56) (0.35)
From net realized gains (2.52) (0.19)
---------- ------------
Total distributions (3.08) (0.54)
- -------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 27.83 $ 25.58
Total return (d) 21.75% 18.99%(e)
- -------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 4,821 $ 2,404
Ratio of expenses to average net assets (f) 1.93% 1.95%(g)
Ratio of net investment income to average net assets (f) 2.08% 1.93%(g)
Portfolio turnover rate 10% 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) Net investment income per share reflects a special dividend. The effect of
this dividend amounted to $0.24 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.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED
--------------------------- 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) 0.60(d) 0.65 0.27(e) 0.21
Net realized and unrealized gain on investments 4.73 4.63 3.10(e) 0.82
---------- ---------- ----------- -----------
Total from investment operations 5.33 5.28 3.37 1.03
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.56) (0.53) (0.16) (0.22)
From net realized gains (2.52) (0.19) -- --
---------- ---------- ----------- -----------
Total distributions (3.08) (0.72) (0.16) (0.22)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 27.84 $ 25.59 $ 21.03 $ 17.82
Total return (f) 21.75% 25.55% 18.99%(g) 6.09%(g)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 4,263 $ 4,059 $ 3,466 $ 365
Ratio of expenses to average net assets (h) 1.93% 1.96% 2.30%(i) 2.18%(i)
Ratio of net investment income to average net assets (h) 2.28% 2.81% 2.02%(e)(i) 4.06%(i)
Portfolio turnover rate 10% 28% 33%(g) 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) Net investment income per share reflects a special dividend. The effect of
this dividend amounted to $0.24 per share.
(e) 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 the period prior to August 31, 2003 have not been
restated to reflect this change in policy.
(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.
167
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA REAL ESTATE EQUITY FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED YEAR ENDED DECEMBER 31,
------------------------- AUGUST 31, -------------------------------------
CLASS Z SHARES 2005 2004 2003 (a) 2002 (b) 2001 2000
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 25.60 $ 21.06 $ 17.81 $ 18.04 $ 17.89 $ 14.57
- --------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.90(c)(d) 0.88(c) 0.39(c)(e) 0.82(c) 0.79 0.81
Net realized and unrealized gain (loss)
on investments 4.70 4.62 3.14(e) (0.25) 0.15 3.32
--------- --------- ----------- ---------- --------- ----------
Total from investment operations 5.60 5.50 3.53 0.57 0.94 4.13
- --------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.82) (0.77) (0.28) (0.71) (0.72) (0.75)
From net realized gains (2.52) (0.19) -- (0.09) (0.07) (0.06)
--------- --------- ----------- ---------- --------- ----------
Total distributions (3.34) (0.96) (0.28) (0.80) (0.79) (0.81)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 27.86 $ 25.60 $ 21.06 $ 17.81 $ 18.04 $ 17.89
Total return (f) 22.99% 26.72% 20.01%(g) 3.12% 5.41% 28.84%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 758,147 $ 872,924 $ 884,747 $ 774,646 $ 621,590 $ 436,764
Ratio of expenses to average
net assets (h) 0.93% 0.97% 1.08%(i) 0.94% 0.95% 0.96%
Ratio of net investment income to
average net assets (h) 3.40% 3.78% 3.09%(e)(i) 5.30% 4.65% 5.16%
Portfolio turnover rate 10% 28% 33%(g) 53% 41% 25%
- --------------------------------------------------------------------------------------------------------------------------------
(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. The effect of
this dividend amounted to $0.24 per share.
(e) 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 the period prior to August 31, 2003 have not been
restated to reflect this change in policy.
(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.
168
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA TECHNOLOGY FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED
--------------------------- 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) (0.04) (0.11) (0.04) (0.01)
Net realized and unrealized gain (loss) on investments,
futures contracts and written options 2.31 0.70 2.16 (0.02)
---------- ---------- ----------- -----------
Total from investment operations 2.27 0.59 2.12 (0.03)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 8.77 $ 6.50 $ 5.91 $ 3.79
Total return (d)(e) 34.92% 9.98% 55.94%(f) (0.79)%(f)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 14,696 $ 2,818 $ 376 $ 1
Ratio of expenses to average net assets (g) 1.85% 1.90% 1.90%(h) 1.76%(h)
Ratio of net investment loss to average net assets (g) (1.47)% (1.51)% (1.35)%(h) (1.35)%(h)
Reimbursement 0.06% 0.53% 3.06%(h) 1.24%(h)
Portfolio turnover rate 328% 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.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED
--------------------------- 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) (0.17) (0.16) (0.07) (0.01)
Net realized and unrealized gain (loss) on investments,
futures contracts and written options 2.34 0.70 2.15 (0.03)
---------- ---------- ----------- -----------
Total from investment operations 2.17 0.54 2.08 (0.04)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 8.57 $ 6.40 $ 5.86 $ 3.78
Total return (d)(e) 33.91% 9.22% 55.03%(f) (1.05)%(f)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 3,183 $ 2,200 $ 1,246 $ 7
Ratio of expenses to average net assets (g) 2.60% 2.65% 2.65%(h) 2.51%(h)
Ratio of net investment loss to average net assets (g) (2.29)% (2.30)% (2.11)%(h) (2.10)%(h)
Reimbursement 0.06% 0.48% 2.40%(h) 1.24%(h)
Portfolio turnover rate 328% 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.
169
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA TECHNOLOGY FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED 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) (0.17) (0.14)
Net realized and unrealized gain on investments,
futures contracts and written options 2.35 0.07
---------- ------------
Total from investment operations 2.18 (0.07)
- -------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 8.59 $ 6.41
Total return (c)(d) 34.01% (1.08)%(e)
- -------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 1,972 $ 488
Ratio of expenses to average net assets (f) 2.60% 2.65%(g)
Ratio of net investment loss to average net assets (f) (2.23)% (2.18)%(g)
Reimbursement 0.06% 0.68%(g)
Portfolio turnover rate 328% 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.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED
--------------------------- 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) (0.18) (0.16) (0.07) (0.01)
Net realized and unrealized gain (loss) on investments,
futures contracts and written options 2.37 0.71 2.17 (0.03)
---------- ---------- ----------- ------------
Total from investment operations 2.19 0.55 2.10 (0.04)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 8.62 $ 6.43 $ 5.88 $ 3.78
Total return (d)(e) 34.06% 9.35% 55.56%(f) (1.05)%(f)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 22 $ 21 $ 15 $ 1
Ratio of expenses to average net assets (g) 2.60% 2.65% 2.65%(h) 2.51%(h)
Ratio of net investment loss to average net assets (g) (2.30)% (2.31)% (2.13)%(h) (2.10)%(h)
Reimbursement 0.06% 0.77% 4.00%(h) 1.24%(h)
Portfolio turnover rate 328% 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.
170
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA TECHNOLOGY FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED YEAR ENDED DECEMBER 31, PERIOD ENDED
------------------------- AUGUST 31, ------------------------ DECEMBER 31,
CLASS Z SHARES 2005 2004 2003 (a) 2002 (b) 2001 2000(c)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 6.55 $ 5.93 $ 3.79 $ 6.13 $ 8.63 $ 10.00
- -------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.10)(d) (0.09)(d) (0.04)(d) (0.06)(d) (0.08) 0.01
Net realized and unrealized gain (loss)
on investments, futures contracts
and written options 2.41 0.71 2.18 (2.28) (2.42) (1.37)
--------- --------- ----------- ---------- --------- ---------
Total from investment operations 2.31 0.62 2.14 (2.34) (2.50) (1.36)
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income -- -- -- -- -- (0.01)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 8.86 $ 6.55 $ 5.93 $ 3.79 $ 6.13 $ 8.63
Total return (e)(f) 35.27% 10.46% 56.46%(g) (38.17)% (28.97)% (13.78)%(g)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 40,947 $ 30,268 $ 19,663 $ 8,055 $ 10,385 $ 4,327
Ratio of expenses to average
net assets (h) 1.60% 1.65% 1.65%(i) 1.65% 1.69% 1.48%(i)
Ratio of net investment income (loss) to
average net assets (h) (1.29)% (1.30)% (1.19)%(i) (1.24)% (1.26)% 0.99%(i)
Reimbursement 0.06% 0.53% 2.73%(i) 1.33% 1.13% 7.49%(i)
Portfolio turnover rate 328% 488% 523%(g) 512% 413% 63%(g)
- -------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were renamed Class Z shares.
(c) The Fund commenced investment operations on October 27, 2000. Per share
data, total return and portfolio turnover rate reflect activity from that
date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Total return at net asset value assuming all distributions reinvested.
(f) Had the Investment Advisor not reimbursed a portion of expenses, total
return would have been reduced.
(g) Not annualized.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
171
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA STRATEGIC INVESTOR FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED
-------------------------- 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) 0.01 0.03 0.06 0.01
Net realized and unrealized gain on investments
and foreign currency 3.08 2.46 2.76 0.40
---------- ---------- ------------ ------------
Total from investment operations 3.09 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 $ 21.21 $ 18.37 $ 15.95 $ 13.13
Total return (d) 16.88%(e) 15.64%(e) 21.48%(f) 3.22%(f)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 169,340 $ 99,608 $ 60,112 $ 53,526
Ratio of expenses to average net assets (g) 1.24% 1.27% 1.30%(h) 1.21%(h)
Ratio of net investment income to average net assets (g) 0.64% 0.19% 0.60%(h) 0.64%(h)
Waiver 0.03% 0.01% -- --
Portfolio turnover rate 80% 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.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED
-------------------------- 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) --(d) (0.10) (0.03) (0.01)
Net realized and unrealized gain on investments
and foreign currency 2.89 2.45 2.75 0.39
---------- ---------- ----------- ------------
Total from investment operations 2.89 2.35 2.72 0.38
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net realized gains (0.22) -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 20.84 $ 18.17 $ 15.82 $ 13.10
Total return (e)(f) 15.97% 14.85% 20.76%(g) 2.99%(g)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 49,318 $ 22,071 $ 3,398 $ 2,350
Ratio of expenses to average net assets (h) 1.99% 2.02% 2.22%(i) 2.36%(i)
Ratio of net investment loss to average net assets (h) (0.09)% (0.57)% (0.33)%(i) (0.51)%(i)
Waiver 0.03% 0.14% 0.23%(i) 0.23%(i)
Portfolio turnover rate 80% 106% 68%(g) 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) 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) 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.
172
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA STRATEGIC INVESTOR FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED PERIOD ENDED
AUGUST 31, 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) --(c) (0.09)
Net realized and unrealized gain on investments and foreign currency 2.89 1.85
---------- ------------
Total from investment operations 2.89 1.76
- --------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net realized gains (0.22) --
- --------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 20.85 $ 18.18
Total return (d)(e) 15.96% 10.72%(f)
- --------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 39,253 $ 14,821
Ratio of expenses to average net assets (g) 1.99% 2.05%(h)
Ratio of net investment loss to average net assets (g) (0.09)% (0.57)%(h)
Waiver 0.03% 0.07%(h)
Portfolio turnover rate 80% 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) Rounds to less than $0.01 per share.
(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.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED
-------------------------- 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) --(d) (0.08) (0.05) (0.01)
Net realized and unrealized gain on investments
and foreign currency 2.89 2.44 2.75 0.40
---------- ---------- ----------- ------------
Total from investment operations 2.89 2.36 2.70 0.39
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net realized gains (0.22) -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 20.84 $ 18.17 $ 15.81 $ 13.11
Total return (e)(f) 15.97% 14.93% 20.59%(g) 3.07%(g)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 525 $ 693 $ 704 $ 355
Ratio of expenses to average net assets (h) 1.99% 1.94% 2.34%(i) 2.28%(i)
Ratio of net investment loss to average net assets (h) (0.14)% (0.48)% (0.48)%(i) (0.43)%(i)
Waiver 0.03% 0.12% 0.15%(i) 0.15%(i)
Portfolio turnover rate 80% 106% 68%(g) 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) 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) 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.
173
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA STRATEGIC INVESTOR FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED YEAR ENDED DECEMBER 31, PERIOD ENDED
----------------------- AUGUST 31, ----------------------- DECEMBER 31,
CLASS Z SHARES 2005 2004 2003 (a) 2002 (b) 2001 2000(c)
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 18.42 $ 15.98 $ 13.14 $ 14.52 $ 11.23 $ 10.00
- ------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.01(d) 0.08(d) 0.08(d) 0.10(d) 0.05 0.02
Net realized and unrealized gain (loss)
on investments and foreign currency 3.13 2.47 2.76 (1.35) 3.29 1.23
--------- --------- ----------- --------- --------- ----------
Total from investment operations 3.14 2.55 2.84 (1.25) 3.34 1.25
- -----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.07) (0.11) -- (0.11) (0.05) (0.02)
From net realized gains (0.22) -- -- (0.02) -- --
--------- --------- ----------- --------- --------- ----------
Total distributions (0.29) (0.11) -- (0.13) (0.05) (0.02)
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 21.27 $ 18.42 $ 15.98 $ 13.14 $ 14.52 $ 11.23
Total return (e) 17.16%(f) 15.98%(f) 21.61%(f)(g) (8.56)%(f) 29.76% 12.25%(f)(g)
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 267,380 $ 272,178 $ 227,454 $ 209,610 $ 139,504 $ 9,526
Ratio of expenses to average
net assets (h) 0.99% 1.02% 1.08%(i) 1.23% 1.13% 1.34%(i)
Ratio of net investment income to
average net assets (h) 0.86% 0.44% 0.82%(i) 0.62% 0.71% 1.92%(i)
Waiver 0.03% 0.03% 0.03%(i) 0.03% -- 3.97%(i)
Portfolio turnover rate 80% 106% 68%(g) 188% 278% 64%(g)
- -----------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were renamed Class Z shares.
(c) The Fund commenced investment operations on October 27, 2000. Per share
data, total return and portfolio turnover rate reflect activity from that
date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Total return at net asset value assuming all distributions reinvested.
(f) Had the Investment Advisor not waived a portion of expenses, total return
would have been reduced.
(g) Not annualized.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
174
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA BALANCED FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED
-------------------------- 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) 0.02(d) 0.29 0.16 0.03
Net realized and unrealized gain on investments
and futures contracts 2.28 0.67 1.64 --(e)
---------- ---------- ----------- ------------
Total from investment operations 2.30 0.96 1.80 0.03
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.41) (0.28) (0.14) (0.09)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 21.75 $ 19.86 $ 19.18 $ 17.52
Total return (f) 11.72% 4.99% 10.35%(g) 0.19%(g)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 3,378 $ 2,577 $ 670 $ 146
Ratio of expenses to average net assets (h) 1.02% 1.02% 1.42%(i) 1.17%(i)
Ratio of net investment income to average net assets (h) 1.80% 1.45% 1.32%(i) 2.03%(i)
Portfolio turnover rate 63% 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. The effect of
this dividend 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.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED
-------------------------- 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) 0.01(d) 0.14 0.07 0.02
Net realized and unrealized gain (loss) on investments
and futures contracts 2.14 0.66 1.65 (0.01)
---------- ---------- ----------- ------------
Total from investment operations 2.15 0.80 1.72 0.01
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.26) (0.13) (0.08) (0.07)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 21.72 $ 19.83 $ 19.16 $ 17.52
Total return (e) 10.91% 4.17% 9.83%(f) 0.06%(f)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 8,149 $ 7,286 $ 3,349 $ 608
Ratio of expenses to average net assets (g) 1.77% 1.77% 2.17%(h) 1.92%(h)
Ratio of net investment income to average net assets (g) 1.07% 0.71% 0.59%(h) 1.28%(h)
Portfolio turnover rate 63% 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. The effect of
this dividend 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.
175
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA BALANCED FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED PERIOD ENDED
AUGUST 31, 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) 0.01(c) 0.13
Net realized and unrealized gain on investments and futures contracts 2.14 0.23
---------- ------------
Total from investment operations 2.15 0.36
- --------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.26) (0.12)
- --------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 21.72 $ 19.83
Total return (d) 10.91% 1.82%(e)
- --------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 952 $ 730
Ratio of expenses to average net assets (f) 1.77% 1.80%(g)
Ratio of net investment income to average net assets (f) 1.06% 0.72%(g)
Portfolio turnover rate 63% 158%(e)
- --------------------------------------------------------------------------------------------------------------
(a) Class C shares were initially offered on October 13, 2003. Per share data
and total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Net investment income per share reflects a special dividend. The effect of
this dividend 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.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED
-------------------------- 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) 0.01(d) 0.15 0.11 0.02
Net realized and unrealized gain (loss) on investments
and futures contracts 2.15 0.65 1.64 (0.02)
---------- ---------- ----------- ------------
Total from investment operations 2.16 0.80 1.75 --
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.26) (0.15) (0.09) (0.07)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 21.72 $ 19.82 $ 19.17 $ 17.51
Total return (e) 10.97% 4.14% 10.01%(f) 0.01%(f)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 320 $ 361 $ 770 $ 446
Ratio of expenses to average net assets (g) 1.77% 1.77% 1.87%(h) 1.92%(h)
Ratio of net investment income to average net assets (g) 1.07% 0.74% 0.89%(h) 1.28%(h)
Portfolio turnover rate 63% 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. The effect of
this dividend 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.
176
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA BALANCED FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED YEAR ENDED DECEMBER 31,
------------------------- AUGUST 31, ------------------------------------------
CLASS Z SHARES 2005 2004 2003 (a) 2002 (b) 2001 2000
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 19.84 $ 19.19 $ 17.51 $ 20.67 $ 22.96 $ 24.72
- --------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.01(c)(d) 0.35(c) 0.24(c) 0.47(c) 0.57(e) 0.67
Net realized and unrealized gain (loss)
on investments and futures contracts 2.36 0.66 1.64 (3.13) (2.27)(e) (0.41)
--------- --------- ---------- ------------ --------- -----------
Total from investment operations 2.37 1.01 1.88 (2.66) (1.70) 0.26
- --------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.47) (0.36) (0.20) (0.50) (0.59) (0.68)
From net realized gains -- -- -- -- -- (1.34)
--------- --------- ---------- ------------ --------- -----------
Total distributions (0.47) (0.36) (0.20) (0.50) (0.59) (2.02)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 21.74 $ 19.84 $ 19.19 $ 17.51 $ 20.67 $ 22.96
Total return (f) 12.06% 5.27% 10.81%(g) (12.97)% (7.40)% 0.82%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 301,109 $ 483,746 $ 640,402 $ 668,290 $ 983,749 $ 1,126,854
Ratio of expenses to average
net assets (h) 0.77% 0.77% 0.77%(i) 0.70% 0.67% 0.65%
Ratio of net investment income to
average net assets (h) 2.11% 1.73% 2.03%(i) 2.50% 2.70%(e) 2.73%
Portfolio turnover rate 63% 158% 110%(g) 98% 111% 105%
- --------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were renamed Class Z shares.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Net investment income per share reflects a special dividend. The effect of
this dividend 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.
177
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA SHORT TERM BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED
-------------------------- 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) 0.23 0.17 0.10 0.04
Net realized and unrealized gain (loss)
on investments and futures contracts (0.07) 0.02 (0.03) 0.04
---------- ---------- ----------- ------------
Total from investment operations 0.16 0.19 0.07 0.08
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.24) (0.17) (0.12) (0.04)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 8.56 $ 8.64 $ 8.62 $ 8.67
Total return (d)(e) 1.83% 2.25% 0.82%(f) 0.94%(f)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 17,004 $ 28,146 $ 37,261 $ 5,543
Ratio of expenses to average net assets (g) 0.88% 0.91% 1.00%(h) 1.00%(h)
Ratio of net investment income to average net assets (g) 2.71% 2.00% 1.78%(h) 3.53%(h)
Reimbursement 0.01% 0.05% 0.05%(h) 0.02%(h)
Portfolio turnover rate 46% 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.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED
-------------------------- 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) 0.17 0.11 0.07 0.03
Net realized and unrealized gain (loss)
on investments and futures contracts (0.08) 0.01 (0.04) 0.04
---------- ---------- ----------- ------------
Total from investment operations 0.09 0.12 0.03 0.07
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.17) (0.10) (0.08) (0.03)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 8.56 $ 8.64 $ 8.62 $ 8.67
Total return (d)(e) 1.07% 1.44% 0.35%(f) 0.77%(f)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 19,418 $ 25,125 $ 26,965 $ 6,261
Ratio of expenses to average net assets (g) 1.63% 1.66% 1.75%(h) 1.75%(h)
Ratio of net investment income to average net assets (g) 1.97% 1.25% 1.16%(h) 2.78%(h)
Reimbursement 0.01% 0.08% 0.15%(h) 0.04%(h)
Portfolio turnover rate 46% 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.
178
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA SHORT TERM BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED PERIOD ENDED
AUGUST 31, 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) 0.22 0.15
Net realized and unrealized loss on investments and futures contracts (0.08) (0.04)
---------- ------------
Total from investment operations 0.14 0.11
- --------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.22) (0.14)
- --------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 8.56 $ 8.64
Total return (c)(d) 1.69% 1.27%(e)
- --------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 2,978 $ 3,128
Ratio of expenses to average net assets (f) 1.03% 1.06%(g)
Ratio of net investment income to average net assets (f) 2.59% 1.88%(g)
Reimbursement 0.01% 0.05%(g)
Waiver(h) 0.60% 0.60%(g)
Portfolio turnover rate 46% 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.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED
-------------------------- 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) 0.22 0.16 0.10 0.04
Net realized and unrealized gain (loss)
on investments and futures contracts (0.08) 0.02 (0.04) 0.04
---------- ---------- ------------ ------------
Total from investment operations 0.14 0.18 0.06 0.08
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.22) (0.16) (0.11) (0.04)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 8.56 $ 8.64 $ 8.62 $ 8.67
Total return (d)(e) 1.69% 2.08% 0.72%(f) 0.88%(f)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 5,579 $ 9,809 $ 18,512 $ 5,223
Ratio of expenses to average net assets (g) 1.03% 1.06% 1.15%(h) 1.15%(h)
Ratio of net investment income to average net assets (g) 2.56% 1.85% 1.71%(h) 3.38%(h)
Reimbursement 0.01% 0.03% 0.18%(h) 0.04%(h)
Waiver (i) 0.60% 0.60% 0.60%(h) 0.60%(h)
Portfolio turnover rate 46% 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.
179
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA SHORT TERM BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED
-------------------------- 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) 0.18 0.12 0.09 0.03
Net realized and unrealized gain (loss)
on investments and futures contracts (0.07) 0.02 (0.05) 0.04
---------- ------------ ------------ ------------
Total from investment operations 0.11 0.14 0.04 0.07
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.19) (0.12) (0.09) (0.03)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 8.56 $ 8.64 $ 8.62 $ 8.67
Total return (d)(e) 1.28% 1.65% 0.47%(f) 0.85%(f)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 598 $ 1,056 $ 1,614 $ 1,874
Ratio of expenses to average net assets (g) 1.43% 1.46% 1.55%(h) 1.55%(h)
Ratio of net investment income to average net assets (g) 2.14% 1.44% 1.58%(h) 2.98%(h)
Reimbursement 0.01% 0.16% 0.10%(h) 0.05%(h)
Portfolio turnover rate 46% 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.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED
-------------------------- 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) 0.24 0.18 0.13 0.04
Net realized and unrealized gain (loss)
on investments and futures contracts (0.08) 0.02 (0.05) 0.04
---------- ---------- ------------ ------------
Total from investment operations 0.16 0.20 0.08 0.08
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.24) (0.18) (0.13) (0.04)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 8.56 $ 8.64 $ 8.62 $ 8.67
Total return (d)(e) 1.94% 2.31% 0.93%(f) 0.95%(f)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 17,975 $ 21,160 $ 28,230 $ 30,859
Ratio of expenses to average net assets (g) 0.78% 0.81% 0.90%(h) 0.90%(h)
Ratio of net investment income to average net assets (g) 2.98% 2.10% 2.25%(h) 3.63%(h)
Reimbursement 0.01% 0.05% 0.04%(h) 0.02%(h)
Portfolio turnover rate 46% 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.
180
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA SHORT TERM BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED YEAR ENDED DECEMBER 31,
--------------------------- AUGUST 31, ------------------------------------------
CLASS Z SHARES 2005 2004 2003 (a) 2002 (b) 2001 2000
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF
PERIOD $ 8.64 $ 8.62 $ 8.67 $ 8.55 $ 8.36 $ 8.20
- --------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.26(c) 0.20(c) 0.14(c) 0.32(c) 0.46(d) 0.42
Net realized and unrealized gain
(loss) on investments and
futures contracts (0.08) 0.01 (0.05) 0.14 0.21(d) 0.16
----------- ----------- ----------- ----------- ----------- -----------
Total from investment operations 0.18 0.21 0.09 0.46 0.67 0.58
- --------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.26) (0.19) (0.14) (0.34) (0.46) (0.42)
From net realized gains -- -- -- --(e) (0.02) --
----------- ----------- ----------- ----------- ----------- -----------
Total distributions (0.26) (0.19) (0.14) (0.34) (0.48) (0.42)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 8.56 $ 8.64 $ 8.62 $ 8.67 $ 8.55 $ 8.36
Total return (f) 2.08%(g) 2.51%(g) 1.06%(g)(h) 5.56% 8.07%(g) 7.26%(g)
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $ 358,964 $ 437,074 $ 436,593 $ 317,588 $ 62,930 $ 35,856
Ratio of expenses to average
net assets (i) 0.63% 0.66% 0.66%(j) 0.67% 0.75% 0.88%
Ratio of net investment
income to average net assets (i) 2.98% 2.27% 2.36%(j) 3.86% 5.29%(d) 5.09%
Reimbursement 0.01% 0.05% 0.07%(j) -- 0.16% 0.02%
Portfolio turnover rate 46% 77% 137%(h) 182% 137% 147%
- --------------------------------------------------------------------------------------------------------------------------------
(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 the period 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.
181
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA FIXED INCOME SECURITIES FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED
---------------------------- 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) 0.50 0.50 0.26 0.11
Net realized and unrealized gain (loss) on investments (0.02) 0.17 (0.14) 0.08
---------- ---------- ---------- ----------
Total from investment operations 0.48 0.67 0.12 0.19
- ---------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.53) (0.52) (0.30) (0.09)
From net realized gains (0.14) -- -- --
---------- ---------- ---------- ----------
Total distributions (0.67) (0.52) (0.30) (0.09)
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 13.30 $ 13.49 $ 13.34 $ 13.52
Total return (d) 3.63%(e) 5.13% 0.84%(f) 1.41%(f)
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 13,260 $ 10,707 $ 7,503 $ 945
Ratio of expenses to average net assets (g) 1.08% 1.05% 1.44%(h) 0.92%(h)
Ratio of net investment income to average net assets (g) 3.74% 3.70% 2.84%(h) 4.78%(h)
Portfolio turnover rate 47% 124% 161%(f) 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) Total return includes a realized gain from a security purchased in
violation of investment restrictions. The security was sold for a gain
that had an impact of less than 0.01% on the Fund's total return.
(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.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED
-------------------------- 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) 0.40 0.40 0.20 0.09
Net realized and unrealized gain (loss) on investments (0.02) 0.17 (0.15) 0.08
--------- --------- --------- ---------
Total from investment operations 0.38 0.57 0.05 0.17
- ---------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.43) (0.42) (0.23) (0.07)
From net realized gains (0.14) -- -- --
--------- --------- --------- ---------
Total distributions (0.57) (0.42) (0.23) (0.07)
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 13.30 $ 13.49 $ 13.34 $ 13.52
Total return (d) 2.86%(e) 4.33% 0.34%(f) 1.27%(f)
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 4,114 $ 4,334 $ 4,410 $ 1,466
Ratio of expenses to average net assets (g) 1.83% 1.82% 2.10%(h) 1.71%(h)
Ratio of net investment income to average net assets (g) 2.98% 2.94% 2.22%(h) 3.99%(h)
Portfolio turnover rate 47% 124% 161%(f) 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) Total return includes a realized gain from a security purchased in
violation of investment restrictions. The security was sold for a gain
that had an impact of less than 0.01% on the Fund's total return.
(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.
182
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA FIXED INCOME SECURITIES FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED PERIOD ENDED
AUGUST 31, 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) 0.42 0.37
Net realized and unrealized gain (loss) on investments (0.02) 0.02
------- -------
Total from investment operations 0.40 0.39
- ----------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.45) (0.40)
From net realized gains (0.14) --
------- -------
Total distributions (0.59) (0.40)
- ----------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 13.30 $ 13.49
Total return (c)(d) 3.01%(e) 2.94%(f)
- ----------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 234 $ 158
Ratio of expenses to average net assets (g) 1.68% 1.64%(h)
Ratio of net investment income to average net assets (g) 3.13% 3.09%(h)
Waiver (i) 0.15% 0.15%(h)
Portfolio turnover rate 47% 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) Total return includes a realized gain from a security purchased in
violation of investment restrictions. The security was sold for a gain
that had an impact of less than 0.01% on the Fund's total return.
(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.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED
-------------------------- 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) 0.42 0.42 0.22 0.09
Net realized and unrealized gain (loss) on investments (0.02) 0.17 (0.15) 0.08
--------- --------- --------- ---------
Total from investment operations 0.40 0.59 0.07 0.17
- ---------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.45) (0.44) (0.25) (0.07)
From net realized gains (0.14) -- -- --
--------- --------- --------- ---------
Total distributions (0.59) (0.44) (0.25) (0.07)
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 13.30 $ 13.49 $ 13.34 $ 13.52
Total return (d)(e) 3.01%(f) 4.51% 0.51%(g) 1.30%(g)
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 1,274 $ 1,745 $ 2,632 $ 427
Ratio of expenses to average net assets (h) 1.68% 1.65% 1.79%(i) 1.58%(i)
Ratio of net investment income to average net assets (h) 3.13% 3.11% 2.44%(i) 4.12%(i)
Waiver (j) 0.15% 0.15% 0.15%(i) 0.15%(i)
Portfolio turnover rate 47% 124% 161%(g) 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) Total return includes a realized gain from a security purchased in
violation of investment restrictions. The security was sold for a gain
that had an impact of less than 0.01% on the Fund's total return.
(g) Not annualized.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
(j) Amounts represent voluntary waiver of service and distribution fees.
183
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA FIXED INCOME SECURITIES FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED YEAR ENDED DECEMBER 31,
--------------------------- AUGUST 31, ------------------------------------------
CLASS Z SHARES 2005 2004 2003 (a) 2002 (b) 2001 2000
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.49 $ 13.34 $ 13.52 $ 13.22 $ 12.97 $ 12.44
- --------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.53(c) 0.53(c) 0.33(c) 0.67(c) 0.77(d) 0.82
Net realized and unrealized gain
(loss) on investments (0.03) 0.18 (0.16) 0.31 0.26(d) 0.53
----------- ----------- ----------- ----------- ----------- -----------
Total from investment operations 0.50 0.71 0.17 0.98 1.03 1.35
- --------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.55) (0.56) (0.35) (0.68) (0.78) (0.82)
From net realized gains (0.14) -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
Total distributions (0.69) (0.56) (0.35) (0.68) (0.78) (0.82)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 13.30 $ 13.49 $ 13.34 $ 13.52 $ 13.22 $ 12.97
Total return (e) 3.83%(f) 5.40% 1.26%(g) 7.65% 8.13% 11.27%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $ 230,711 $ 324,325 $ 506,046 $ 547,524 $ 465,743 $ 378,799
Ratio of expenses to average
net assets (h) 0.83% 0.80% 0.77%(i) 0.67% 0.66% 0.66%
Ratio of net investment income
to average net assets (h) 3.98% 3.96% 3.66%(i) 5.03% 5.83%(d) 6.53%
Portfolio turnover rate 47% 124% 161%(g) 103% 110% 105%
- --------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31.
(b) On November 1, 2002, the existing Fund shares were renamed Class Z shares.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) 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 the period
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) Total return includes a realized gain from a security purchased in
violation of investment restrictions. The security was sold for a gain
that had an impact of less than 0.01% on the Fund's total return.
(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 OREGON INTERMEDIATE MUNICIPAL BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED
----------------------- 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) 0.46 0.46 0.29 0.08
Net realized and unrealized gain (loss) on investments 0.03 0.34 (0.22) 0.07
--------- --------- --------- ---------
Total from investment operations 0.49 0.80 0.07 0.15
- -------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.45) (0.46) (0.31) (0.08)
From net realized gains (0.04) (0.14) (0.01) (0.09)
--------- --------- --------- ---------
Total distributions (0.49) (0.60) (0.32) (0.17)
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.45 $ 12.45 $ 12.25 $ 12.50
Total return (d) 4.05% 6.68% 0.56%(e) 1.19%(e)
- -------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 4,300 $ 3,680 $ 2,138 $ 477
Ratio of expenses to average net assets (f) 0.89% 0.92% 1.16%(g) 0.92%(g)
Ratio of net investment income to average net assets (f) 3.71% 3.73% 3.52%(g) 4.11%(g)
Portfolio turnover rate 9% 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.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED
----------------------- 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) 0.37 0.37 0.24 0.06
Net realized and unrealized gain (loss) on investments 0.03 0.34 (0.23) 0.08
--------- --------- ----------- ------------
Total from investment operations 0.40 0.71 0.01 0.14
- --------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.36) (0.37) (0.25) (0.07)
From net realized gains (0.04) (0.14) (0.01) (0.09)
--------- --------- ----------- ------------
Total distributions (0.40) (0.51) (0.26) (0.16)
- --------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.45 $ 12.45 $ 12.25 $ 12.50
Total return (d) 3.26% 5.87% 0.05%(e) 1.10%(e)
- --------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 1,226 $ 1,190 $ 999 $ 373
Ratio of expenses to average net assets (f) 1.64% 1.68% 1.86%(g) 1.67%(g)
Ratio of net investment income to average net assets (f) 2.96% 2.97% 2.83%(g) 3.36%(g)
Portfolio turnover rate 9% 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.
185
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED PERIOD ENDED
AUGUST 31, 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) 0.41 0.36
Net realized and unrealized gain on investments 0.03 0.18
------- -------
Total from investment operations 0.44 0.54
- -------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.40) (0.37)
From net realized gains (0.04) (0.14)
------- -------
Total distributions (0.44) (0.51)
- -------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.45 $ 12.45
Total return (c)(d) 3.64% 4.41%(e)
- -------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 601 $ 278
Ratio of expenses to average net assets (f) 1.29% 1.30%(g)
Ratio of net investment income to average net assets (f) 3.31% 3.28%(g)
Waiver (h) 0.35% 0.35%(g)
Portfolio turnover rate 9% 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) Amounts represent voluntary waivers of service and distribution fees.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED
--------------------- 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) 0.41 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 0.44 0.75 0.04 0.14
- --------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.40) (0.41) (0.28) (0.07)
From net realized gains (0.04) (0.14) (0.01) (0.09)
------- ------- ------- -------
Total distributions (0.44) (0.55) (0.29) (0.16)
- --------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.45 $ 12.45 $ 12.25 $ 12.50
Total return (d)(e) 3.62% 6.25% 0.32%(f) 1.14%(f)
- --------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 764 $ 790 $ 700 $ 488
Ratio of expenses to average net assets (g) 1.29% 1.33% 1.43%(h) 1.32%(h)
Ratio of net investment income to average net assets (g) 3.31% 3.34% 3.30%(h) 3.71%(h)
Waiver (i) 0.35% 0.35% 0.35%(h) 0.35%(h)
Portfolio turnover rate 9% 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.
186
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED YEAR ENDED DECEMBER 31,
--------------------------- AUGUST 31, ------------------------------------------
CLASS Z SHARES 2005 2004 2003 (a) 2002 (b) 2001 2000
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.45 $ 12.25 $ 12.50 $ 12.08 $ 12.13 $ 11.56
- --------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.49(c) 0.50(c) 0.34(c) 0.55(c) 0.57(d) 0.58
Net realized and unrealized gain
(loss) on investments 0.03 0.34 (0.23) 0.54 (0.02)(d) 0.58
----------- ----------- ----------- ----------- ----------- -----------
Total from investment operations 0.52 0.84 0.11 1.09 0.55 1.16
- --------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.48) (0.50) (0.35) (0.55) (0.57) (0.58)
From net realized gains (0.04) (0.14) (0.01) (0.12) (0.03) (0.01)
----------- ----------- ----------- ----------- ----------- -----------
Total distributions (0.52) (0.64) (0.36) (0.67) (0.60) (0.59)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.45 $ 12.45 $ 12.25 $ 12.50 $ 12.08 $ 12.13
Total return (e) 4.31% 6.97% 0.83%(f) 9.24% 4.55% 10.28%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $ 410,706 $ 434,509 $ 485,427 $ 508,865 $ 491,638 $ 436,544
Ratio of expenses to average
net assets (g) 0.64% 0.65% 0.68%(h) 0.58% 0.57% 0.58%
Ratio of net investment income to
average net assets (g) 3.96% 4.03% 4.13%(h) 4.45% 4.64%(d) 4.92%
Portfolio turnover rate 9% 11% 10%(f) 21% 14% 22%
- --------------------------------------------------------------------------------------------------------------------------------
(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 period 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.
187
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA CONSERVATIVE HIGH YIELD FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED
------------------------- 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) 0.48 0.50 0.33 0.09
Net realized and unrealized gain (loss) on investments (0.03) 0.24 0.15 0.20
----------- ----------- ----------- -----------
Total from investment operations 0.45 0.74 0.48 0.29
- -----------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.52) (0.54) (0.36) (0.09)
- -----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 8.62 $ 8.69 $ 8.49 $ 8.37
Total return (d) 5.31% 8.90% 5.81%(e) 3.50%(e)
- -----------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 321,402 $ 335,841 $ 193,267 $ 33,992
Ratio of expenses to average net assets (f) 0.95% 1.01% 1.07%(g) 1.15%(g)
Ratio of net investment income to average net assets (f) 5.55% 5.74% 5.82%(g) 6.46%(g)
Portfolio turnover rate 40% 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.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED
------------------------- 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) 0.42 0.43 0.28 0.07
Net realized and unrealized gain (loss) on investments (0.03) 0.24 0.15 0.20
----------- ----------- ----------- -----------
Total from investment operations 0.39 0.67 0.43 0.27
- -----------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.46) (0.47) (0.31) (0.07)
- -----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 8.62 $ 8.69 $ 8.49 $ 8.37
Total return (d) 4.53% 8.07% 5.20%(e) 3.33%(e)
- -----------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 89,101 $ 102,038 $ 89,950 $ 16,701
Ratio of expenses to average net assets (f) 1.70% 1.77% 1.94%(g) 1.90%(g)
Ratio of net investment income to average net assets (f) 4.80% 4.97% 4.93%(g) 5.71%(g)
Portfolio turnover rate 40% 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.
188
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA CONSERVATIVE HIGH YIELD FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED PERIOD ENDED
AUGUST 31, 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) 0.43 0.39
Net realized and unrealized gain (loss) on investments (0.03) 0.09
---------- -----------
Total from investment operations 0.40 0.48
- -----------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.47) (0.43)
- -----------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 8.62 $ 8.69
Total return (c)(d) 4.69% 5.65%(e)
- -----------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 18,002 $ 20,126
Ratio of expenses to average net assets (f) 1.55% 1.61%(g)
Ratio of net investment income to average net assets (f) 4.95% 5.03%(g)
Waiver (h) 0.15% 0.15%(g)
Portfolio turnover rate 40% 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.
YEAR ENDED AUGUST 31, PERIOD ENDED PERIOD ENDED
------------------------- 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) 0.43 0.44 0.29 0.07
Net realized and unrealized gain (loss) on investments (0.03) 0.24 0.15 0.20
----------- ----------- ----------- -----------
Total from investment operations 0.40 0.68 0.44 0.27
- -----------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.47) (0.48) (0.32) (0.07)
- -----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 8.62 $ 8.69 $ 8.49 $ 8.37
Total return (d)(e) 4.69% 8.23% 5.35%(f) 3.35%(f)
- -----------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 58,739 $ 86,854 $ 103,559 $ 18,035
Ratio of expenses to average net assets (g) 1.55% 1.62% 1.73%(h) 1.75%(h)
Ratio of net investment income to average net assets (g) 4.95% 5.12% 5.12%(h) 5.86%(h)
Waiver (i) 0.15% 0.15% 0.15%(h) 0.15%(h)
Portfolio turnover rate 40% 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.
189
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA CONSERVATIVE HIGH YIELD FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED YEAR ENDED DECEMBER 31,
--------------------------- AUGUST 31, ----------------------------------------
CLASS Z SHARES 2005 2004 2003 (a) 2002 (b) 2001 2000
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 8.69 $ 8.49 $ 8.37 $ 8.87 $ 8.98 $ 9.32
- --------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.50(c) 0.52(c) 0.35(c) 0.57(c) 0.67(d) 0.75
Net realized and unrealized gain
(loss) on investments (0.03) 0.24 0.15 (0.48) (0.09)(d) (0.34)
----------- ----------- ----------- --------- --------- --------
Total from investment operations 0.47 0.76 0.50 0.09 0.58 0.41
- --------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.54) (0.56) (0.38) (0.59) (0.69) (0.75)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 8.62 $ 8.69 $ 8.49 $ 8.37 $ 8.87 $ 8.98
Total return (e) 5.54% 9.16% 6.04%(f) 1.17% 6.63% 4.61%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $ 1,073,894 $ 1,186,454 $ 1,197,340 $ 702,785 $ 238,994 $ 97,575
Ratio of expenses to average net
assets (g) 0.70% 0.77% 0.82%(h) 0.77% 0.85% 0.93%
Ratio of net investment income to
average net assets (g) 5.80% 5.97% 6.19%(h) 6.84% 7.47%(d) 8.22%
Portfolio turnover rate 40% 41% 38%(f) 42% 69% 50%
- --------------------------------------------------------------------------------------------------------------------------------
(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 the period
prior to December 31, 2001 have not been restated to reflect this change
in presentation.
(e) Total return at net asset value assuming all distributions reinvested.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
190
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA DAILY INCOME COMPANY
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED AUGUST 31, PERIOD ENDED YEAR ENDED DECEMBER 31,
------------------------- AUGUST 31, ------------------------------------------
CLASS Z SHARES 2005 2004 2003 (a) 2002 (b) 2001 2000
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
- --------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.018(c) 0.004(c) 0.004(c) 0.012(c) 0.036 0.058
- --------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
From net investment income (0.018) (0.004) (0.004) (0.012) (0.036) (0.058)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Total return (d) 1.77% 0.36% 0.40%(e) 1.17% 3.70% 6.00%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $ 487,824 $ 661,114 $ 898,164 $ 1,136,075 $ 1,253,535 $ 1,198,151
Ratio of expenses to average
net assets (f) 0.79% 0.71% 0.69%(g) 0.60% 0.60% 0.60%
Ratio of net investment income
to average net assets (f) 1.75% 0.38% 0.53%(g) 1.16% 3.61% 5.82%
- --------------------------------------------------------------------------------------------------------------------------------
(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.
191
REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM ______________________________________________
COLUMBIA FUNDS
TO THE BOARD OF DIRECTORS AND THE SHAREHOLDERS OF:
COLUMBIA INTERNATIONAL STOCK FUND
COLUMBIA MID CAP GROWTH FUND, INC.
COLUMBIA SMALL CAP GROWTH FUND I
(FORMERLY COLUMBIA SMALL CAP GROWTH FUND, INC.)
COLUMBIA REAL ESTATE EQUITY FUND, INC.
COLUMBIA TECHNOLOGY FUND, INC.
COLUMBIA STRATEGIC INVESTOR FUND, INC.
COLUMBIA BALANCED FUND, INC.
COLUMBIA SHORT TERM BOND FUND, INC.
COLUMBIA FIXED INCOME SECURITIES FUND, INC.
COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND
(FORMERLY COLUMBIA OREGON MUNICIPAL BOND FUND, INC.)
COLUMBIA CONSERVATIVE HIGH YIELD FUND
(FORMERLY HIGH YIELD FUND, INC.)
COLUMBIA DAILY INCOME COMPANY
In our opinion, the accompanying statements of assets and liabilities, including
the investment portfolios, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the above Funds (the "Funds") at
August 31, 2005, the results of their operations for the year then ended, the
changes in their net assets for each of the two years in the period then ended,
and their financial highlights for the periods indicated, in conformity with
accounting principles generally accepted in the United States of America. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Funds' management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with the standards of the Public Company Accounting Oversight Board (United
States). Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at August 31, 2005 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion.
As described in Note 14 to the financial statements, upon approval of the
shareholders of Columbia Short Term Bond Fund and Columbia Fixed Income
Securities Fund on September 16, 2005 and September 28, 2005, respectively,
Columbia Short Term Bond Fund merged with Nations Short-Term Income Fund and
ceased operations on September 23, 2005 and Columbia Fixed Income Securities
Fund merged with Columbia Total Return Bond Fund and ceased operations on
October 7, 2005.
PricewaterhouseCoopers LLP
Boston, Massachusetts
October 26, 2005
192
UNAUDITED INFORMATION __________________________________________________________
COLUMBIA FUNDS
FEDERAL INCOME TAX INFORMATION
COLUMBIA INTERNATIONAL STOCK FUND
Foreign taxes paid during the fiscal year ended August 31, 2005, amounting to
$1,939,178 ($0.03 per share) are expected to be passed through to shareholders
as 100.00% allowable foreign tax credits on Form 1099-DIV for the year ending
December 31, 2005.
For the fiscal year ended August 31, 2005, the Fund designates long-term capital
gains of $13,876,238.
For non-corporate shareholders 100.00% or the maximum amount allowable under the
Jobs and Growth Tax Relief Reconciliation Act of 2003, of income earned by the
Fund for the period September 1, 2004 to August 31, 2005 may represent qualified
dividend income. Final information will be provided in your 2005 1099-Div Form.
COLUMBIA MID CAP GROWTH FUND
For the fiscal year ended August 31, 2005, the Fund designates long-term capital
gains of $9,566,493.
COLUMBIA SMALL CAP GROWTH FUND I
For the fiscal year ended August 31, 2005, the Fund designates long-term capital
gains of $2,509,028.
COLUMBIA TECHNOLOGY FUND
For the fiscal year ended August 31, 2005, the Fund designates long-term capital
gains of $2,018,570.
COLUMBIA STRATEGIC INVESTOR FUND
For the fiscal year ended August 31, 2005, the Fund designates long-term capital
gains of $20,966,017.
For non-corporate shareholders 64.75% or the maximum amount allowable under the
Jobs and Growth Tax Relief Reconciliation Act of 2003, of income earned by the
Fund for the period September 1, 2004 to August 31, 2005 may represent qualified
dividend income. Final information will be provided in your 2005 1099-Div Form.
55.95% of the ordinary income distributed by the Fund, for the year ended August
31, 2005, qualifies for the corporate dividends received deduction.
COLUMBIA BALANCED FUND
For non-corporate shareholders 44.44% or the maximum amount allowable under the
Jobs and Growth Tax Relief Reconciliation Act of 2003, of income earned by the
Fund for the period September 1, 2004 to August 31, 2005 may represent qualified
dividend income. Final information will be provided in your 2005 1099-Div Form.
42.42% of the ordinary income distributed by the Fund, for the year ended August
31, 2005, qualifies for the corporate dividends received deduction.
COLUMBIA FIXED INCOME SECURITIES FUND.
For the fiscal year ended August 31, 2005, the Fund designates long-term capital
gains of $1,080,656.
COLUMBIA OREGON INTERMEDIATE MUNICIPAL BOND FUND
100.00% of the distributions from net investment income will be treated as
exempt income for federal income tax purposes.
193
TRUSTEES _______________________________________________________________________
COLUMBIA FUNDS
The Trustees/Directors serve terms of indefinite duration. The names, addresses
and ages of the Trustees/Directors and officers of the Funds in the Columbia
Funds Complex, the year each was first elected or appointed to office, their
principal business occupations during at least the last five years, the number
of portfolios overseen by each Trustee/Director and other directorships they
hold are shown below. Each officer listed below serves as an officer of each
Fund in the Columbia Funds Complex.
NAME, ADDRESS AND AGE, POSITION WITH FUNDS, PRINCIPAL OCCUPATION(S) DURING PAST
YEAR FIRST ELECTED OR FIVE YEARS, NUMBER OF PORTFOLIOS IN
APPOINTED TO OFFICE (1) COLUMBIA FUNDS COMPLEX OVERSEEN BY
TRUSTEE/DIRECTOR, OTHER
DIRECTORSHIPS HELD
DISINTERESTED TRUSTEES
DOUGLAS A. HACKER (Age 49) Executive Vice President-Strategy
P.O. Box 66100 of United Airlines (airline) since
Chicago, IL 60666 December, 2002 (formerly President
Trustee (since 1996) of UAL Loyalty Services (airline)
from September, 2001 to December,
2002; Executive Vice President and
Chief Financial Officer of United
Airlines from July, 1999 to
September, 2001; Senior Vice
President-Finance from March, 1993
to July, 1999). Oversees 90, Nash
Finch Company (food distributor)
-----------------------------------
JANET LANGFORD KELLY (Age 47) Partner, Zelle, Hofmann, Voelbel,
9534 W. Gull Lake Drive Mason & Gette LLP (law firm) since
Richland, MI 49083-8530 March, 2005; Adjunct Professor of
Trustee (since 1996) Law, Northwestern University, since
September, 2004 (formerly Chief
Administrative Officer and Senior
Vice President, Kmart Holding
Corporation (consumer goods), from
September, 2003 to March, 2004;
Executive Vice President-Corporate
Development and Administration,
General Counsel and Secretary,
Kellogg Company (food
manufacturer), from September, 1999
to August, 2003; Senior Vice
President, Secretary and General
Counsel, Sara Lee Corporation
(branded, packaged,
consumer-products manufacturer)
from January, 1995 to September,
1999). Oversees 90, None
-----------------------------------
RICHARD W. LOWRY (Age 69) Private Investor since August, 1987
10701 Charleston Drive (formerly Chairman and Chief
Vero Beach, FL 32963 Executive Officer, U.S. Plywood
Trustee (since 1995) Corporation (building products
manufacturer)). Oversees 92 (3),
None
-----------------------------------
CHARLES R.NELSON (Age 62) Professor of Economics,University
Department of Economics of Washington,since January,1976;
University of Washington Ford and Louisa Van Voorhis
Seattle,WA 98195 Professor of Political
Trustee (since 1981) Economy,University of
Washington,since September,1993
(formerly Director, Institute for
Economic Research,University of
Washington from September,2001 to
June,2003) Adjunct Professor of
Statistics,University of
Washington,since
September,1980;Associate Editor,
Journal of Money Credit and
Banking,since September,1993;
consultant on econometric and
statistical matters.Oversees
90,None
-----------------------------------
JOHN J. NEUHAUSER (Age 63) Academic Vice President and Dean of
84 College Road Faculties since August, 1999,
Chestnut Hill, MA 02467-3838 Boston College (formerly Dean
Trustee (since 1985) Boston College School of Management
from September, 1977 to August,
1999). Oversees 92 (3), Saucony,
Inc. (athletic footwear)
-----------------------------------
194
________________________________________________________________________________
COLUMBIA FUNDS
NAME, ADDRESS AND AGE, POSITION WITH PRINCIPAL OCCUPATION(S) DURING PAST
FUNDS,YEAR FIRST ELECTED FIVE YEARS, NUMBER OF PORTFOLIOS IN
OR APPOINTED TO OFFICE (1) COLUMBIA FUNDS COMPLEX OVERSEEN BY
TRUSTEE/DIRECTOR, OTHER
DIRECTORSHIPS HELD
DISINTERESTED TRUSTEES
PATRICK J. SIMPSON (Age 61) Partner, Perkins Coie L.L.P.
1120 N.W. Couch Street (law firm). Oversees 90, None
Tenth Floor
Portland, OR 97209-4128
Trustee (since 2000)
-----------------------------------
THOMAS E. STITZEL (Age 69) Business Consultant since 1999
2208 Tawny Woods Place (formerly Professor of Finance from
Boise, ID 83706 1975 to 1999, College of Business,
Trustee (since 1998) Boise State University); Chartered
Financial Analyst. Oversees 90,
None
-----------------------------------
THOMAS C. THEOBALD (Age 68) Partner and Senior Advisor, Chicago
8 Sound Shore Drive, Growth Partners (private equity
Suite 285 investing) since September, 2004
Greenwich, CT 06830 (formerly Managing Director,
Trustee and Chairman of the Board(4) William Blair Capital Partners
(since 1996) (private equity investing) from
September, 1994 to September,
2004). Oversees 90, Anixter
International (network support
equipment distributor); Ventas,
Inc. (real estate investment
trust); Jones Lang LaSalle (real
estate management services) and
Ambac Financial Group (financial
guaranty insurance)
-----------------------------------
ANNE-LEE VERVILLE (Age 60) Retired since 1997 (formerly
359 Stickney Hill Road General Manager, Global Education
Hopkinton, NH 03229 Industry, IBM Corporation (computer
Trustee (since 1998) and technology) from 1994 to 1997).
Oversees 90, Chairman of the Board
of Directors, Enesco Group, Inc.
(designer, importer and distributor
of giftware and collectibles)
-----------------------------------
RICHARD L. WOOLWORTH (Age 64) Retired since December 2003
100 S.W. Market Street #1500 (formerly Chairman and Chief
Portland, OR 97207 Executive Officer, The Regence
Trustee (since 1991) Group (regional health insurer);
Chairman and Chief Executive
Officer, BlueCross BlueShield of
Oregon; Certified Public
Accountant, Arthur Young &
Company). Oversees 90, Northwest
Natural Gas Co. (natural gas
service provider)
-----------------------------------
INTERESTED TRUSTEE
WILLIAM E. MAYER (2) (Age 65) Partner, Park Avenue Equity
399 Park Avenue Partners (private equity) since
Suite 3204 February, 1999 (formerly Partner,
New York, NY 10022 Development Capital LLC from
Trustee (since 1994) November 1996, to February, 1999).
Oversees 92 (3), Lee Enterprises
(print media), WR Hambrecht + Co.
(financial service provider);
Reader's Digest (publishing);
OPENFIELD Solutions (retail
industry technology provider)
-----------------------------------
(1) In December 2000, the boards of
each of the former Liberty Funds
and former Stein Roe Funds were
combined into one board of trustees
responsible for the oversight of
both fund groups (collectively, the
"Liberty Board"). In October 2003,
the trustees on the Liberty Board
were elected to the boards of the
Columbia Funds (the "Columbia
Board") and of the CMG Fund Trust
(the "CMG Funds Board");
simultaneous with that election,
Patrick J. Simpson and Richard L.
Woolworth, who had been directors
on the Columbia Board and trustees
on the CMG Funds Board, were
appointed to serve as trustees of
the Liberty Board. The date shown
is the earliest date on which a
trustee/director was elected or
appointed to the board of a Fund in
the Columbia Funds Complex.
(2) Mr. Mayer is an "interested person"
(as defined in the Investment
Company Act of 1940 (1940 Act)) by
reason of his affiliation with WR
Hambrecht + Co.
(3) Messrs. Lowry, Neuhauser and Mayer
also serve as directors/trustees of
the Liberty All-Star Funds,
currently consisting of 3 funds,
which are advised by an affiliate
of the Advisor.
(4) Mr. Theobald was appointed as
Chairman of the Board effective
December 10, 2003.
The Statement of Additional Information
Includes additional information about
the Trustees of the Funds and is
available, without charge, upon request
by calling 800-426-3750.
195
OFFICERS _______________________________________________________________________
COLUMBIA FUNDS
NAME, ADDRESS AND AGE, POSITION WITH
COLUMBIA FUNDS, YEAR FIRST ELECTED OR PRINCIPAL OCCUPATION(S) DURING PAST
APPOINTED TO OFFICE FIVE YEARS
CHRISTOPHER L. WILSON (Age 48) Head of Mutual Funds since August,
One Financial Center 2004 and Managing Director of the
Boston, MA 02111 Advisor since January, 2005;
President (since 2004) President of the Columbia Funds,
Liberty Funds and Stein Roe Funds
since October, 2004; President and
Chief Executive Officer of the
Nations Funds since January, 2005;
President of the Galaxy Funds since
April 2005; Director of Bank of
America Global Liquidity Funds, plc
since May 2005; Director of Banc of
America Capital Management
(Ireland), Limited since May 2005;
Director of FIM Funding, Inc. since
January, 2005; Senior Vice
President of Columbia Management
Distributor, Inc. since January,
2005; Director of Columbia
Management Services, Inc. since
January, 2005 (formerly Senior Vice
President of Columbia Management
from January, 2005 to August, 2005;
Senior Vice President of BACAP
Distributors LLC from January 2005
to July 2005; President and Chief
Executive Officer, CDC IXIS Asset
Management Services, Inc. from
September, 1998 to August, 2004).
-----------------------------------
J. KEVIN CONNAUGHTON (Age 41) Treasurer of the Columbia Funds
One Financial Center since October, 2003 and of the
Boston, MA 02111 Liberty Funds, Stein Roe Funds and
Treasurer (since 2000) All-Star Funds since December,
2000; Managing Director of the
Advisor since September, 2005
(formerly Vice President of
Columbia Management from April,
2003 to August, 2005; President of
the Columbia Funds, Liberty Funds
and Stein Roe Funds from February,
2004 to October, 2004; Chief
Accounting Officer and Controller
of the Liberty Funds and All-Star
Funds from February, 1998 to
October, 2000); Treasurer of the
Galaxy Funds since September, 2002
(formerly Treasurer from December,
2002 to December, 2004 and
President from February, 2004 to
December, 2004 of the Columbia
Management Multi-Strategy Hedge
Fund, LLC; Vice President of
Colonial Management Associates,
Inc. from February, 1998 to
October, 2000).
-----------------------------------
MARY JOAN HOENE (Age 54) Senior Vice President and Chief
40 West 57th Street Compliance Officer of the Columbia
New York, NY 10005 Funds, Liberty Funds, Stein Roe
Senior Vice President and Chief Compliance Funds and All-Star Funds since
Officer (since 2004) August, 2004; Chief Compliance
Officer of the Columbia Management
Multi Strategy Hedge Fund since
August 2004. Chief Compliance
Officer of the BACAP Alternative
Multi-Strategy Hedge Fund LLC since
October 2004 (formerly Partner,
Carter, Ledyard & Milburn LLP from
January, 2001 to August, 2004;
Counsel, Carter, Ledyard & Milburn
LLP from November, 1999 to
December, 2000; Vice President and
Counsel, Equitable Life Assurance
Society of the United States from
April, 1998 to November, 1999).
-----------------------------------
MICHAEL G. CLARKE (Age 35) Chief Accounting Officer of the
One Financial Center Columbia Funds, Liberty Funds,
Boston, MA 02111 Stein Roe Funds and All-Star Funds
Chief Accounting Officer (since 2004) since October, 2004; Managing
Director of the Advisor since
September, 2005; (formerly
Controller of the Columbia Funds,
Liberty Funds, Stein Roe Funds and
All-Star Funds from May, 2004 to
October, 2004; Assistant Treasurer
from June, 2002 to May, 2004; Vice
President, Product Strategy &
Development of the Liberty Funds
and Stein Roe Funds from February,
2001 to June, 2002; Assistant
Treasurer of the Liberty Funds,
Stein Roe Funds and the All-Star
Funds from August, 1999 to
February, 2001; Audit Manager,
Deloitte & Touche LLP from May,
1997 to August, 1999).
-----------------------------------
JEFFREY R. COLEMAN (Age 35) Controller of the Columbia Funds,
One Financial Center Liberty Funds, Stein Roe Funds and
Boston, MA 02111 All-Star Funds since October, 2004
Controller (since 2004) (formerly Vice President of CDC
IXIS Asset Management Services,
Inc. and Deputy Treasurer of the
CDC Nvest Funds and Loomis Sayles
Funds from February, 2003 to
September, 2004; Assistant Vice
President of CDC IXIS Asset
Management Services, Inc. and
Assistant Treasurer of the CDC
Nvest Funds from August, 2000 to
February, 2003; Tax Manager of
PFPC, Inc. from November, 1996 to
August, 2000).
-----------------------------------
R. SCOTT HENDERSON (Age 46) Secretary of the Columbia Funds,
One Financial Center Liberty Funds and Stein Roe Funds
Boston, MA 02111 since December, 2004 (formerly Of
Secretary (since 2004) Counsel, Bingham McCutchen from
April, 2001 to September, 2004;
Executive Director and General
Counsel, Massachusetts Pension
Reserves Investment Management
Board from September, 1997 to
March, 2001).
-----------------------------------
196
OFFICERS _______________________________________________________________________
COLUMBIA FUNDS
----------------------------------------------
GROWTH FUNDS Columbia Acorn Fund
Columbia Acorn Select
Columbia Acorn USA
Columbia Growth Stock Fund
Columbia Large Cap Growth Fund
Columbia Marsico 21st Century Fund
Columbia Marsico Focused Equities Fund
Columbia Marsico Growth Fund
Columbia Marsico Mid Cap Fund
Columbia Mid Cap Growth Fund
Columbia Small Cap Growth Fund I
Columbia Small Cap Growth Fund II
Columbia Small Company Equity Fund
----------------------------------------------
CORE FUNDS Columbia Common Stock Fund
Columbia Large Cap Core Fund
Columbia Small Cap Core Fund
Columbia Young Investor Fund
----------------------------------------------
VALUE FUNDS Columbia Disciplined Value Fund
Columbia Dividend Income Fund
Columbia Large Cap Value Fund
Columbia Mid Cap Value Fund
Columbia Small Cap Value Fund I
Columbia Small Cap Value Fund II
Columbia Strategic Investor Fund
----------------------------------------------
ASSET ALLOCATION/HYBRID FUNDS Columbia Asset Allocation Fund
Columbia Asset Allocation Fund II
Columbia Balanced Fund
Columbia Liberty Fund
Columbia LifeGoalTM Balanced Growth Portfolio
Columbia LifeGoalTM Growth Portfolio
Columbia LifeGoalTM Income Portfolio
Columbia LifeGoalTM Income and Growth
Portfolio
Columbia Thermostat Fund
----------------------------------------------
INDEX FUNDS Columbia Large Cap Enhanced Core Fund
Columbia Large Cap Index Fund
Columbia Mid Cap Index Fund
Columbia Small Cap Index Fund
----------------------------------------------
TAX-MANAGED FUND Columbia Tax-Managed Growth Fund
----------------------------------------------
SPECIALTY FUNDS Columbia Convertible Securities Fund
Columbia Real Estate Equity Fund
Columbia Technology Fund
Columbia Utilities Fund
----------------------------------------------
GLOBAL/INTERNATIONAL FUNDS Columbia Acorn International
Columbia Acorn International Select
Columbia Global Value Fund
Columbia Greater China Fund
Columbia International Stock Fund
Columbia International Value Fund
Columbia Marsico International Opportunities
Fund
Columbia Multi-Advisor International Equity
Fund
Columbia World Equity Fund
----------------------------------------------
TAXABLE BOND FUNDS Columbia Conservative High Yield Fund
Columbia Core Bond Fund
Columbia Federal Securities Fund
Columbia High Income Fund
Columbia High Yield Opportunity Fund
Columbia Income Fund
Columbia Intermediate Bond Fund
Columbia Intermediate Core Bond Fund
Columbia Short Term Bond Fund
Columbia Strategic Income Fund
Columbia Total Return Bond Fund
Columbia U.S. Treasury Index Fund
197
________________________________________________________________________________
COLUMBIA FUNDS
----------------------------------------------
TAX-EXEMPT BOND FUNDS Columbia California Tax-Exempt Fund
Columbia CA Intermediate Municipal Bond Fund
Columbia Connecticut Tax-Exempt Fund
Columbia CT Intermediate Municipal Bond Fund
Columbia FL Intermediate Municipal Bond Fund
Columbia GA Intermediate Municipal Bond Fund
Columbia High Yield Municipal Fund
Columbia Intermediate Municipal Bond Fund
Columbia MA Intermediate Municipal Bond Fund
Columbia Massachusetts Tax-Exempt Fund
Columbia MD Intermediate Municipal Bond Fund
Columbia Municipal Income Fund
Columbia NC Intermediate Municipal Bond Fund
Columbia New York Tax-Exempt Fund
Columbia NJ Intermediate Municipal Bond Fund
Columbia NY Intermediate Municipal Bond Fund
Columbia OR Intermediate Municipal Bond Fund
Columbia RI Intermediate Municipal Bond Fund
Columbia SC Intermediate Municipal Bond Fund
Columbia Short Term Municipal Income Fund
Columbia Tax-Exempt Fund
Columbia Tax-Exempt Insured Fund
Columbia TX Intermediate Municipal Bond Fund
Columbia VA Intermediate Municipal Bond Fund
----------------------------------------------
MONEY MARKET FUNDS Columbia Government Plus Reserves
Columbia Treasury Reserves
Columbia Money Market Reserves
Columbia Government Reserves
Columbia Tax-Exempt Reserves
Columbia New York Tax-Exempt Reserves
Columbia Municipal Reserves
Columbia Cash Reserves
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 is the primary investment management division of Bank of
America Corporation. Columbia Management entities furnish investment management
services and advise institutional and mutual fund portfolios. Columbia
Management Advisors, Inc. and Banc of America Capital Management, LLC, both SEC
registered investment advisors and wholly owned subsidiaries of Bank of America,
N.A. merged on September 30, 2005. At that time, the newly combined advisor
changed its name to Columbia Management Advisors, LLC ("CMA"). CMA will continue
to operate as a SEC- registered investment advisor, wholly owned subsidiary of
Bank of America, N.A. and part of Columbia Management.
198
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IMPORTANT INFORMATION ABOUT THIS REPORT ________________________________________
COLUMBIA FUNDS
TRANSFER AGENT
Columbia Management Services, Inc.
P.O. Box 8081
Boston MA 02266-8081
800-345-6611
DISTRIBUTOR
Columbia Management
Distributors, Inc.
One Financial Center
Boston MA 02111
INVESTMENT ADVISOR
Columbia Management Advisors, LLC
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 funds use to determine how
to vote proxies and a copy of the funds' 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 funds voted proxies relating to
portfolio securities during the 12-month period ended June 30, is available from
the SEC's website. Information regarding how the funds voted proxies relating to
portfolio securities is also available from the funds' website.
The funds file a complete schedule of portfolio holdings with the SEC for the
first and third quarters of each fiscal year on Form N-Q. The funds' 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.
Columbia Management is the primary investment management division of Bank of
America Corporation. Columbia Management entities furnish investment management
services and advise institutional and mutual fund portfolios. Columbia
Management Advisors, Inc. and Banc of America Capital Management, LLC, both SEC
registered investment advisors and wholly owned subsidiaries of Bank of America,
N.A. merged on September 30, 2005. At that time, the newly combined advisor
changed its name to Columbia Management Advisors, LLC ("CMA"). CMA will continue
to operate as a SEC-registered investment advisor, wholly owned subsidiary of
Bank of America, N.A. and part of Columbia Management.
201
- --------------------------------------------------------------------------------
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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 ANNUAL REPORT, AUGUST 31, 2005 PRSRT STD
U.S. POSTAGE
PAID
HOLLISTON, MA
PERMIT NO. 20
---------------
COLUMBIA MANAGEMENT (R)
(c) 2005 COLUMBIA MANAGEMENT DISTRIBUTORS, INC.
ONE FINANCIAL CENTER, BOSTON, MA 02111-2621
800.345.6611 WWW.COLUMBIAFUNDS.COM
SHC-42/9037O-0805 (10/05) 05/7959
ITEM 2. CODE OF ETHICS.
(a) The registrant has, as of the end of the period covered by this
report, adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal
accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party.
(b) During the period covered by this report, there were not any
amendments to a provision of the code of ethics adopted in 2(a) above.
(c) During the period covered by this report, there were not any waivers
or implicit waivers to a provision of the code of ethics adopted in
2(a) above.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's Board of Trustees has determined that Douglas A. Hacker, Thomas
E. Stitzel, Anne-Lee Verville and Richard L. Woolworth, each of whom are members
of the registrant's Board of Trustees and Audit Committee, each qualify as an
audit committee financial expert. Mr. Hacker, Mr. Stitzel, Ms. Verville and Mr.
Woolworth are each independent trustees, as defined in paragraph (a)(2) of this
item's instructions and collectively constitute the entire Audit Committee.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Aggregate Audit Fees billed by the principal accountant for professional
services rendered during the fiscal years ended August 31, 2005 and August 31,
2004 are approximately as follows:
2005 2004
$32,100 $30,700
Audit Fees include amounts related to the audit of the registrant's annual
financial statements or services that are normally provided by the accountant in
connection with statutory and regulatory filings or engagements for those fiscal
years. Note that fiscal year 2004 includes the review of a non-routine
regulatory filing.
(b) Aggregate Audit-Related Fees billed by the principal accountant for
professional services rendered during the fiscal years ended August 31, 2005 and
August 31, 2004 are approximately as follows:
2005 2004
$4,000 $3,500
Audit-Related Fees include amounts for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported in Audit Fees
above. In both fiscal years 2005 and 2004, Audit-Related Fees include certain
agreed-upon procedures performed for semi-annual shareholder reports. In fiscal
year 2005 Audit-Related Fees also include certain agreed-upon procedures related
to the review of the registrant's anti-money laundering program.
(c) Aggregate Tax Fees billed by the principal accountant for professional
services rendered during the fiscal years ended August 31, 2005 and August 31,
2004 are approximately as follows:
2005 2004
$3,400 $2,700
Tax Fees in both fiscal years 2005 and 2004 consist primarily of the review of
annual tax returns and include amounts for professional services by the
principal accountant for tax compliance, tax advice and tax planning.
(d) Aggregate All Other Fees billed by the principal accountant for professional
services rendered during the fiscal years ended August 31, 2005 and August 31,
2004 are approximately as follows:
2005 2004
$0 $0
All Other Fees include amounts for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) above.
None of the amounts described in paragraphs (a) through (d) above were approved
pursuant to the "de minimis" exception under paragraph (c)(7)(i)(C) of Rule 2-01
of Regulation S-X.
(E)(1) AUDIT COMMITTEE PRE-APPROVAL POLICIES AND PROCEDURES
I. GENERAL OVERVIEW
The Audit Committee of the registrant has adopted a formal policy (the "Policy")
which sets forth the procedures and the conditions pursuant to which the Audit
Committee will
pre-approve (i) all audit and non-audit (including audit related, tax and all
other) services provided by the registrant's independent auditor to the
registrant and individual funds (collectively "Fund Services"), and (ii) all
non-audit services provided by the registrant's independent auditor to the
funds' adviser or a control affiliate of the adviser, that relate directly to
the funds' operations and financial reporting (collectively "Fund-related
Adviser Services"). A "control affiliate" is an entity controlling, controlled
by, or under common control with the adviser that provides ongoing services to
the funds, and the term "adviser" is deemed to exclude any unaffiliated
sub-adviser whose role is primarily portfolio management and is sub-contracted
or overseen by another investment adviser. The adviser and control affiliates
are collectively referred to as "Adviser Entities."
The Audit Committee uses a combination of specific (on a case-by-case basis as
potential services are contemplated) and general (pre-determined list of
permitted services) pre-approvals. Unless a type of service has received general
pre-approval, it will require specific pre-approval by the Audit Committee if it
is to be provided by the independent auditor.
The Policy does not delegate the Audit Committee's responsibilities to
pre-approve services performed by the independent auditor to management.
II. GENERAL PROCEDURES
On an annual basis, the Fund Treasurer and/or Director of Trustee Administration
shall submit to the Audit Committee a schedule of the types of Fund Services and
Fund-related Adviser Services that are subject to general pre-approval.
These schedules will provide a description of each type of service that is
subject to general pre-approval and, where possible, will provide estimated fees
for each instance of providing each service. This general pre-approval and
related fees (where provided) will generally cover a one-year period (for
example, from June 1 through May 31 of the following year). The Audit Committee
will review and approve the types of services and review the projected fees for
the next one-year period and may add to, or subtract from, the list of general
pre-approved services from time to time, based on subsequent determinations.
This approval acknowledges that the Audit Committee is in agreement with the
specific types of services that the independent auditor will be permitted to
perform. The fee amounts will be updated to the extent necessary at other
regularly scheduled meetings of the Audit Committee.
In addition to the fees for each individual service, the Audit Committee has the
authority to implement a fee cap on the aggregate amount of non-audit services
provided to an individual fund.
If, subsequent to general pre-approval, a fund, its investment adviser or a
control affiliate determines that it would like to engage the independent
auditor to perform a service that requires pre-approval and that is not included
in the general pre-approval list, the specific pre-approval procedure shall be
as follows:
o A brief written request shall be prepared by management detailing the
proposed engagement with explanation as to why the work is proposed to
be performed by the independent auditor;
o The request should be addressed to the Audit Committee with copies to
the Fund Treasurer and/or Director of Trustee Administration;
o The Fund Treasurer and/or Director of Trustee Administration will
arrange for a discussion of the service to be included on the agenda
for the next regularly scheduled Audit Committee meeting, when the
Committee will discuss the proposed engagement and approve or deny the
request.
o If the timing of the project is critical and the project needs to
commence before the next regularly scheduled meeting, the Chairperson
of the Audit Committee may approve or deny the request on behalf of
the Audit Committee, or, in the Chairperson's discretion, determine to
call a special meeting of the Audit Committee for the purpose of
considering the proposal. Should the Chairperson of the Audit
Committee be unavailable, any other member of the Audit Committee may
serve as an alternate for the purpose of approving or denying the
request. Discussion with the Chairperson (or alternate, if necessary)
will be arranged by the Fund Treasurer and/or Director of Trustee
Administration. The independent auditor will not commence any such
project unless and until specific approval has been given.
III. CERTAIN OTHER SERVICES PROVIDED TO ADVISER ENTITIES
The Audit Committee recognizes that there are cases where services proposed to
be provided by the independent auditor to the adviser or control affiliates are
not Fund-related Adviser Services within the meaning of the Policy, but
nonetheless may be relevant to the Audit Committee's ongoing evaluation of the
auditor's independence and objectivity with respect to its audit services to the
funds. As a result, in all cases where an Adviser Entity engages the independent
auditor to provide audit or non-audit services that are not Fund Services or
Fund-related Adviser Services, were not subject to pre-approval by the Audit
Committee, and the projected fees for any such engagement (or the aggregate of
all such engagements during the period covered by the Policy) exceeds a
pre-determined threshold established by the Audit Committee; the independent
auditor, Fund Treasurer and/or Director of Trustee Administration will notify
the Audit Committee not later than its next meeting. Such notification shall
include a general description of the services provided, the entity that is to be
the recipient of such services, the timing of the engagement, the entity's
reasons for selecting the independent auditor, and the projected fees. Such
information will allow the Audit Committee to consider whether non-audit
services provided to the adviser and Adviser Entities, which were not subject to
Audit Committee pre-approval, are compatible with maintaining the auditor's
independence with respect to the Funds.
IV. REPORTING TO THE AUDIT COMMITTEE
The Fund Treasurer or Director of Trustee Administration shall report to the
Audit Committee at each of its regular meetings regarding all Fund Services or
Fund-related Adviser Services initiated since the last such report was rendered,
including:
o A general description of the services, and
o Actual billed and projected fees, and
o The means by which such Fund Services or Fund-related Adviser Services
were pre-approved by the Audit Committee.
In addition, the independent auditor shall report to the Audit Committee
annually, and no more than 90 days prior to the filing of audit reports with the
SEC, all non-audit services provided to entities in the funds' "investment
company complex," as defined by SEC rules, that did not require pre-approval
under the Policy.
V. AMENDMENTS; ANNUAL APPROVAL BY AUDIT COMMITTEE
The Policy may be amended from time to time by the Audit Committee. Prompt
notice of any amendments will be provided to the independent auditor, Fund
Treasurer and Director of Trustee Administration. The Policy shall be reviewed
and approved at least annually by the Audit Committee.
*****
(e)(2) The percentage of services described in paragraphs (b) through (d) of
this Item approved pursuant to the "de minimis" exception under paragraph
(c)(7)(i)(C) of Rule 2-01 of Regulation S-X during both fiscal years ended
August 31, 2005 and August 31, 2004 was zero.
(f) Not applicable.
(g) All non-audit fees billed by the registrant's accountant for services
rendered to the registrant for the fiscal years ended August 31, 2005 and August
31, 2004 are disclosed in (b) through (d) of this Item.
During the fiscal years ended August 31, 2005 and August 31, 2004, there were no
Audit-Related Fees or Tax Fees that were approved for services to the investment
adviser (not including any sub-adviser whose role is primarily portfolio
management and is subcontracted with or overseen by another investment adviser)
and any entity controlling, controlled by, or under common control with the
adviser that provides ongoing services to the registrant under paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X. During the fiscal years ended August
31, 2005 and August 31, 2004, All Other Fees that were approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X were approximately $95,500
and $95,000, respectively. For both fiscal years, All Other Fees consist
primarily of internal controls reviews of the registrant's transfer agent.
The percentage of Audit-Related Fees, Tax Fees and All Other Fees required to be
approved under paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X that were
approved under the "de minimis" exception during both fiscal years ended August
31, 2005 and August 31, 2004 was zero.
(h) The registrant's Audit Committee of the Board of Directors has considered
whether the provision of non-audit services that were rendered to the
registrant's adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the investment adviser that provides ongoing services to the registrant
that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X, is compatible with maintaining the principal accountant's
independence. The Audit Committee determined that the provision of such services
is compatible with maintaining the principal accountant's independence.
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 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, has concluded that such controls and procedures are
adequately designed to ensure that information required to be
disclosed by the registrant in Form N-CSR is accumulated and
communicated to the registrant's management, including the principal
executive officer and principal financial officer, or persons
performing similar functions, as appropriate to allow timely decisions
regarding required disclosure.
(b) There were no changes in the registrant's internal control over
financial reporting that occurred during the registrant's 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
attached hereto as Exhibit 99.CODE ETH.
(a)(2) Certifications pursuant to Rule 30a-2(a) under the Investment Company Act
of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT.
(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 Balanced Fund, Inc.
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By (Signature and Title) /s/ Christopher L. Wilson
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Christopher L. Wilson, President
Date October 27, 2005
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title) /s/ Christopher L. Wilson
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Christopher L. Wilson, President
Date October 27, 2005
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By (Signature and Title) /s/ J. Kevin Connaughton
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J. Kevin Connaughton, Treasurer
Date October 27, 2005
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