<Page> 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: 811-6347 --------------------------------------------- Columbia Funds Trust VII - ------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) One Financial Center, Boston, Massachusetts 02111 - ------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Vincent Pietropaolo, Esq. Columbia Management Group, Inc. One Financial Center Boston, MA 02111 - ------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 1-617-772-3698 ---------------------------- Date of fiscal year end: 08/31/05 -------------------------- Date of reporting period: 02/28/05 -------------------------- Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. Section 3507. ITEM 1. REPORTS TO STOCKHOLDERS. <Page> [GRAPHIC] COLUMBIA NEWPORT TIGER FUND SEMIANNUAL REPORT FEBRUARY 28, 2005 <Page> TABLE OF CONTENTS <Table> Fund Profile 1 Performance Information 2 Understanding Your Expenses 3 Economic Update 4 Portfolio Manager's Report 5 Financial Statements 7 Investment Portfolio 8 Statement of Assets and Liabilities 12 Statement of Operations 13 Statement of Changes in Net Assets 14 Notes to Financial Statements 16 Financial Highlights 22 Columbia Funds 27 Important Information About This Report 29 </Table> Economic and market conditions change frequently. There is no assurance that the trends described in this report will continue or commence. NOT FDIC MAY LOSE VALUE INSURED ------------------- NO BANK GUARANTEE PRESIDENT'S MESSAGE COLUMBIA NEWPORT TIGER FUND [PHOTO] DEAR SHAREHOLDER: In 2004, Columbia Funds became part of the Bank of America family, one of the largest, most respected financial institutions in the United States. As a direct result of this merger, a number of changes are in the works that we believe may offer significant benefits for our shareholders. Plans are underway to combine various Nations Funds and Columbia Funds together to form a single fund family that covers a wide range of markets, sectors and asset classes under the management of talented, seasoned investment professionals. As a result, some funds will be merged in order to eliminate redundancies and fund management teams will be aligned to maximize performance potential. You will receive more detailed information about these proposed mergers, and you will be asked to vote on certain fund changes that may affect you and your account. In this matter, your timely response will help us to implement the changes in 2005. The increased efficiencies we expect from a more streamlined offering of funds may help us reduce fees charged to the funds, because larger funds often benefit from size and scale of operations. For example, significant savings for the combined complex may result from the consolidation of certain vendor agreements. In fact, negotiations are currently underway to consolidate the transfer agency of all of our funds and to consolidate custodial services, each under a single vendor. We have reduced management fees for many funds as part of our settlement agreement (See Note 8 in the Notes to Financial Statements) with the New York Attorney General. As a result of these changes, we believe we will offer shareholders an even stronger lineup of investment options, with management expenses that continue to be competitive and fair. What will not change as we enter this next phase of consolidation is our commitment to the highest standards of performance and our dedication to superior service. Change for the good has another name: it's called improvement. It helps move us forward, and we believe that it represents progress for all our shareholders in their quest for long-term financial success. In the pages that follow, you'll find a discussion of the economic environment during the period followed by a detailed report from the fund's manager or managers on key factors that influenced performance. We hope that you will read the manager reports carefully and discuss any questions you might have with your financial advisor. As always, we thank you for choosing Columbia Funds. We appreciate your continued confidence. And, we look forward to helping you keep your long-term financial goals on target in the years to come. Sincerely, /s/ Christopher Wilson Christopher Wilson Head of Mutual Funds, Columbia Management Christopher Wilson is Head of Mutual Funds for Columbia Management, responsible for the day-to-day delivery of mutual fund services to the firm's investors. With the exception of distribution, Chris oversees all aspects of the mutual fund services operation, including treasury, investment accounting and shareholder and broker services. Chris serves as Columbia Management's liaison to the mutual fund boards of trustees. Chris joined Bank of America in August 2004. <Page> FUND PROFILE COLUMBIA NEWPORT TIGER FUND The information below gives you a snapshot of your fund at the end of the reporting period. Your fund is actively managed, and the composition of its portfolio will change over time. TOP 5 COUNTRIES AS OF 02/28/05 (%) <Table> Hong Kong 21.8 Taiwan 18.4 South Korea 17.8 Singapore 10.1 Thailand 9.8 </Table> TOP 5 SECTORS AS OF 02/28/05 (%) <Table> Financials 36.2 Information technology 24.0 Consumer discretionary 16.5 Telecommunication services 6.7 Industrials 4.7 </Table> TOP 10 HOLDINGS AS OF 02/28/05 (%) <Table> Samsung Electronics 8.2 Sun Hung Kai Properties 4.2 Kookmin Bank 3.9 Taiwan Semiconductor Manufacturing 3.6 China Mobile Hong Kong 3.6 Siam Cement Public 3.4 Li & Fung 2.9 Hong Leong Bank Berhad 2.8 Esprit Holdings 2.6 Hon Hai Precision Industry 2.5 </Table> Country breakdowns are calculated as a percentage of total investments. Sector and portfolio holdings are calculated as a percentage of net assets. Management style is determined by Columbia Management and is based on the investment strategy and process as outlined in the fund's prospectus. [SIDENOTE] SUMMARY - - FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 28, 2005, THE FUND'S CLASS A SHARES RETURNED 22.52% WITHOUT SALES CHARGE. - - STRONG ECONOMIC GROWTH AND DOMESTIC CONSUMPTION IN CHINA AND OTHER SMALLER MARKETS HELPED THE FUND, ITS BENCHMARK AND PEER GROUP ACHIEVE STRONG RETURNS FOR THE PERIOD. - - THE FUND'S EMPHASIS ON STEADY, LONG-TERM GROWTH STOCKS HURT PERFORMANCE IN THE LAST SEVERAL MONTHS OF THE PERIOD, DURING WHICH CYCLICAL STOCKS WERE THE BEST PERFORMERS. [CHART] <Table> CLASS A SHARES 22.52% MSCI ALL COUNTRY ASIA EX JAPAN INDEX 24.85% </Table> OBJECTIVE Seeks capital appreciation by investing primarily in equity securities of companies located in the Tiger countries of Asia. TOTAL NET ASSETS $349.0 million MANAGEMENT STYLE [GRAPHIC] 1 <Page> PERFORMANCE INFORMATION COLUMBIA NEWPORT TIGER FUND [CHART] VALUE OF A $10,000 INVESTMENT 03/01/95 - 02/28/05 <Table> <Caption> CLASS A SHARES WITHOUT SALES CHARGE CLASS A SHARES WITH SALES CHARGE MSCI ALL COUNTRY ASIA EX JAPAN INDEX 03/1/1995 $ 10,000 $ 9,425 $ 10,000 3/31/1995 $ 10,216 $ 9,629 $ 9,994 4/30/1995 $ 10,234 $ 9,646 $ 9,856 5/31/1995 $ 11,438 $ 10,780 $ 10,965 6/30/1995 $ 11,287 $ 10,638 $ 10,794 7/31/1995 $ 11,560 $ 10,895 $ 10,997 8/31/1995 $ 11,174 $ 10,532 $ 10,490 9/30/1995 $ 11,381 $ 10,726 $ 10,615 10/31/1995 $ 11,306 $ 10,656 $ 10,432 11/30/1995 $ 11,334 $ 10,682 $ 10,195 12/31/1995 $ 11,800 $ 11,121 $ 10,699 1/31/1996 $ 12,936 $ 12,192 $ 11,530 2/29/1996 $ 12,936 $ 12,192 $ 11,656 3/31/1996 $ 12,842 $ 12,103 $ 11,741 4/30/1996 $ 12,794 $ 12,058 $ 12,164 5/31/1996 $ 12,728 $ 11,996 $ 12,027 6/30/1996 $ 12,444 $ 11,728 $ 11,848 7/31/1996 $ 11,743 $ 11,068 $ 10,974 8/31/1996 $ 12,169 $ 11,470 $ 11,305 9/30/1996 $ 12,530 $ 11,809 $ 11,500 10/31/1996 $ 12,444 $ 11,729 $ 11,281 11/30/1996 $ 13,098 $ 12,345 $ 11,814 12/31/1996 $ 13,091 $ 12,338 $ 11,772 1/31/1997 $ 13,006 $ 12,258 $ 12,016 2/28/1997 $ 12,987 $ 12,240 $ 12,118 3/31/1997 $ 12,187 $ 11,486 $ 11,433 4/30/1997 $ 11,967 $ 11,279 $ 11,263 5/31/1997 $ 13,034 $ 12,284 $ 11,772 6/30/1997 $ 13,578 $ 12,798 $ 12,203 7/31/1997 $ 13,789 $ 12,996 $ 12,306 8/31/1997 $ 11,430 $ 10,772 $ 10,124 9/30/1997 $ 11,868 $ 11,186 $ 10,078 10/31/1997 $ 8,975 $ 8,459 $ 7,838 11/30/1997 $ 8,736 $ 8,234 $ 7,300 12/31/1997 $ 8,644 $ 8,147 $ 7,028 1/31/1998 $ 7,245 $ 6,828 $ 6,420 2/28/1998 $ 8,788 $ 8,283 $ 7,781 3/31/1998 $ 8,702 $ 8,202 $ 7,667 4/30/1998 $ 7,907 $ 7,452 $ 6,995 5/31/1998 $ 6,709 $ 6,323 $ 5,928 6/30/1998 $ 5,981 $ 5,637 $ 5,262 7/31/1998 $ 5,559 $ 5,239 $ 5,129 8/31/1998 $ 4,685 $ 4,415 $ 4,390 9/30/1998 $ 5,520 $ 5,203 $ 4,826 10/31/1998 $ 7,258 $ 6,840 $ 5,875 11/30/1998 $ 7,603 $ 7,166 $ 6,349 12/31/1998 $ 7,600 $ 7,163 $ 6,481 1/31/1999 $ 7,131 $ 6,721 $ 6,378 2/28/1999 $ 7,102 $ 6,694 $ 6,254 3/31/1999 $ 7,776 $ 7,329 $ 7,003 4/30/1999 $ 9,495 $ 8,949 $ 8,284 5/31/1999 $ 8,928 $ 8,415 $ 8,105 6/30/1999 $ 10,003 $ 9,428 $ 9,372 7/31/1999 $ 9,993 $ 9,419 $ 9,165 8/31/1999 $ 10,052 $ 9,474 $ 9,392 9/30/1999 $ 9,632 $ 9,078 $ 8,734 10/31/1999 $ 10,140 $ 9,557 $ 9,016 11/30/1999 $ 11,537 $ 10,874 $ 9,873 12/31/1999 $ 13,159 $ 12,403 $ 10,673 1/31/2000 $ 12,495 $ 11,776 $ 10,620 2/29/2000 $ 12,915 $ 12,172 $ 10,398 3/31/2000 $ 13,481 $ 12,706 $ 10,643 4/30/2000 $ 12,504 $ 11,785 $ 9,667 5/31/2000 $ 11,654 $ 10,984 $ 8,826 6/30/2000 $ 12,924 $ 12,181 $ 9,292 7/31/2000 $ 12,934 $ 12,191 $ 8,894 8/31/2000 $ 12,934 $ 12,191 $ 8,828 9/30/2000 $ 11,997 $ 11,307 $ 7,817 10/31/2000 $ 11,400 $ 10,745 $ 7,201 11/30/2000 $ 10,814 $ 10,193 $ 6,923 12/31/2000 $ 11,078 $ 10,441 $ 6,912 1/31/2001 $ 11,869 $ 11,187 $ 7,802 2/28/2001 $ 11,165 $ 10,523 $ 7,434 3/31/2001 $ 9,788 $ 9,225 $ 6,592 4/30/2001 $ 10,374 $ 9,777 $ 6,602 5/31/2001 $ 10,130 $ 9,548 $ 6,592 6/30/2001 $ 9,846 $ 9,280 $ 6,434 7/31/2001 $ 9,583 $ 9,032 $ 6,191 8/31/2001 $ 8,947 $ 8,433 $ 6,094 9/30/2001 $ 7,580 $ 7,144 $ 5,136 10/31/2001 $ 7,844 $ 7,393 $ 5,413 11/30/2001 $ 8,782 $ 8,277 $ 6,137 12/31/2001 $ 9,245 $ 8,713 $ 6,647 1/31/2002 $ 9,373 $ 8,834 $ 6,913 2/28/2002 $ 9,324 $ 8,788 $ 6,964 3/31/2002 $ 9,865 $ 9,298 $ 7,430 4/30/2002 $ 9,964 $ 9,391 $ 7,506 5/31/2002 $ 9,708 $ 9,150 $ 7,336 6/30/2002 $ 9,195 $ 8,667 $ 6,972 7/31/2002 $ 8,692 $ 8,193 $ 6,708 8/31/2002 $ 8,486 $ 7,998 $ 6,589 9/30/2002 $ 7,727 $ 7,283 $ 5,863 10/31/2002 $ 8,072 $ 7,607 $ 6,161 11/30/2002 $ 8,545 $ 8,053 $ 6,488 12/31/2002 $ 8,058 $ 7,595 $ 6,093 1/31/2003 $ 8,009 $ 7,549 $ 6,143 2/28/2003 $ 7,742 $ 7,297 $ 5,895 3/31/2003 $ 7,425 $ 6,998 $ 5,619 4/30/2003 $ 7,544 $ 7,110 $ 5,797 5/31/2003 $ 8,118 $ 7,651 $ 6,297 6/30/2003 $ 8,653 $ 8,155 $ 6,694 7/31/2003 $ 9,356 $ 8,818 $ 7,264 8/31/2003 $ 10,138 $ 9,555 $ 7,822 9/30/2003 $ 10,356 $ 9,760 $ 7,881 10/31/2003 $ 11,108 $ 10,470 $ 8,557 11/30/2003 $ 10,950 $ 10,320 $ 8,452 12/31/2003 $ 11,649 $ 10,979 $ 8,957 1/31/2004 $ 12,118 $ 11,421 $ 9,502 2/29/2004 $ 12,387 $ 11,674 $ 9,824 3/31/2004 $ 12,019 $ 11,328 $ 9,660 4/30/2004 $ 11,501 $ 10,839 $ 9,129 5/31/2004 $ 11,282 $ 10,633 $ 8,823 6/30/2004 $ 11,053 $ 10,418 $ 8,746 7/31/2004 $ 10,834 $ 10,211 $ 8,571 8/31/2004 $ 11,283 $ 10,634 $ 8,988 9/30/2004 $ 11,621 $ 10,953 $ 9,334 10/31/2004 $ 11,900 $ 11,216 $ 9,395 11/30/2004 $ 12,996 $ 12,249 $ 10,229 12/31/2004 $ 13,415 $ 12,643 $ 10,543 1/31/2005 $ 13,334 $ 12,568 $ 10,618 02/28/2005 $ 13,825 $ 13,030 $ 11,222 </Table> The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The Morgan Stanley Capital International (MSCI) All Country (AC) Asia ex Japan Index is an unmanaged index that tracks the performance of equity securities in eleven countries in Asia, excluding Japan and taking into account local market restrictions on share ownership by foreigners. Unlike the fund, indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. AVERAGE ANNUAL TOTAL RETURN AS OF 02/28/05 (%) <Table> <Caption> SHARE CLASS A B C T Z -------------------- ---------------- ----------------- ----------------- ----------------- -------- INCEPTION 04/01/95 04/01/95 04/01/95 05/31/89 05/31/89 -------------------- ---------------- ----------------- ----------------- ----------------- -------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT -------------------- ---------------- ----------------- ----------------- ----------------- -------- 6-month (cumulative) 22.52 15.48 22.34 17.34 22.23 21.23 22.84 15.78 22.81 1-year 11.59 5.17 10.96 5.96 10.87 9.87 11.93 5.50 11.97 5-year 1.37 0.17 0.65 0.26 0.62 0.62 1.63 0.43 1.61 10-year 3.29 2.68 2.54 2.54 2.53 2.53 3.54 2.92 3.51 </Table> AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/04 (%) <Table> <Caption> SHARE CLASS A B C T Z -------------------- ---------------- ----------------- ----------------- ----------------- -------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT -------------------- ---------------- ----------------- ----------------- ----------------- -------- 6-month (cumulative) 21.35 14.37 20.80 15.80 20.88 19.88 21.40 14.42 21.46 1-year 15.13 8.51 14.20 9.20 14.27 13.27 15.31 8.68 15.35 5-year 0.38 -0.80 -0.37 -0.77 -0.37 -0.37 0.61 -0.57 0.60 10-year 2.83 2.22 2.06 2.06 2.07 2.07 3.05 2.44 3.03 </Table> 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 SHARES AND 1.00% FOR CLASS C SHARES FOR THE FIRST YEAR ONLY. THE "WITHOUT SALES CHARGE" RETURNS DO NOT INCLUDE THE EFFECT OF SALES CHARGES. IF THEY HAD, RETURNS WOULD BE LOWER. ALL RESULTS SHOWN ASSUME REINVESTMENT OF DISTRIBUTIONS. CLASS Z SHARES ARE SOLD AT NET ASSET VALUE WITH NO RULE 12b-1 FEES. PERFORMANCE FOR DIFFERENT SHARE CLASSES WILL VARY BASED ON DIFFERENCES IN SALES CHARGES AND FEES ASSOCIATED WITH EACH CLASS. 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 fund was originally introduced on 05/31/89 and became Colonial Newport Tiger Fund on 04/01/95 when class A, B and D (since designated C) shares were offered. On 04/30/98, the fund was renamed Newport Tiger Fund. The fund was renamed Liberty Newport Tiger Fund on July 14, 2000. Please see the fund's prospectus for additional details. Class A, B and C share performance information includes returns of the fund's class T shares for periods prior to the inception dates of those classes. Class T share returns are not restated to reflect any expense differential, e.g., Rule 12b-1 fees, between class T shares and class A, B and C shares. Had expense differentials been reflected, returns for the periods prior to the inception date of the class A, B and C shares would have been lower. [SIDENOTE] PERFORMANCE OF A $10,000 INVESTMENT 03/01/95 - 02/28/05 ($) <Table> <Caption> SALES CHARGE: WITHOUT WITH Class A 13,825 13,030 Class B 12,845 12,845 Class C 12,836 12,836 Class T 14,155 13,341 Class Z 14,116 n/a </Table> Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, 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. 2 <Page> UNDERSTANDING YOUR EXPENSES COLUMBIA NEWPORT TIGER FUND As a fund shareholder, you incur two types of costs. There are transaction costs, which generally include sales charges on purchases and may include redemption or exchange fees. There are also ongoing costs, which generally include investment advisory, 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. [SIDENOTE] 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: - - FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA FUNDS SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT www.columbiafunds.com OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611 - - 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 $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6 2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE PERIOD," LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER IS IN THE COLUMN LABELED "ACTUAL." MULTIPLY THIS NUMBER BY THE RESULT FROM STEP 1. YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR ACCOUNT DURING THE PERIOD 09/01/04 - 02/28/05 <Table> <Caption> ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%) ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL -------------------------- --------------------- ---------------------- Class A 1,000.00 1,000.00 1,226.08 1,015.92 9.88 8.95 1.79 Class B 1,000.00 1,000.00 1,223.40 1,012.20 14.00 12.67 2.54 Class C 1,000.00 1,000.00 1,222.31 1,012.20 14.00 12.67 2.54 Class T 1,000.00 1,000.00 1,228.41 1,017.16 8.51 7.70 1.54 Class Z 1,000.00 1,000.00 1,228.11 1,017.16 8.51 7.70 1.54 </Table> Expenses paid during the period are equal to the fund's annualized expense ratio, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 365. Had the Investment Advisor not waived or 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 will not help you determine the relative total costs of owning shares of different funds. If these transactional costs were included, your costs would have been higher. COMPARE WITH OTHER FUNDS Since all mutual fund companies are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other fund companies, 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 <Page> ECONOMIC UPDATE COLUMBIA NEWPORT TIGER FUND During the six-month period that began September 1, 2004, and ended February 28, 2005, the global economy expanded at an estimated pace of 4.6%, despite a modest slowdown near the end of 2004. In December, a vicious tsunami, one of the worst natural disasters in history, ravaged portions of the region and its effects were felt by local economies. However, 2005 is expected to be another year of solid growth. STOCK MARKETS RECORD STRONG GAINS In general, strong economic growth translated into double-digit gains for the region's stock markets. The MSCI All Country Asia ex Japan Index rose 24.85% for the six-month period. The MSCI China Index rose 19.03%. Hong Kong stocks returned 11.60%, as measured by the Hang Seng Index. CHINA CONTINUES TO DRIVE ASIA'S FORTUNES Economic growth in China was a notably strong 9.5% last year. Despite three quarters of somewhat slower growth, China's GDP surged in the final quarter of 2004. Exports hit record levels, thanks in part to a weaker dollar. Agricultural output soared and retail sales also helped spur the jump in GDP. And imports of crude oil jumped nearly 35% to meet rising demand for electricity and fuel for autos and trucks. Yet, key indicators suggest that the government's attempt to rein in the pace of growth is still working. Industrial production is growing at a slower pace compared to 2003 and early 2004 and fixed asset investment has slowed. Slower growth in the euro zone and the United States in 2005 is also expected to lower demand for Chinese imports. SMALLER TIGER ECONOMIES DELIVER SOLID GROWTH Though subdued in comparison to China, the smaller Tiger economies delivered solid growth for the period. In Thailand, industrial output has eased in recent months, yet the prospects for 2005 remain positive. The industrial sector is expected to benefit from the reconstruction of businesses affected by the tsunami. In addition, the government has announced plans to invest heavily in new infrastructure aimed at keeping domestic employment and spending high and inflation low. In Singapore, economic growth took a big leap ahead in 2004 as biomedical firms helped offset the loss of some electronics-related manufacturing to India and China, which have undercut Singapore manufacturers on cost. However, growth is expected to slow in 2005, partly because manufacturing is already running at full capacity. The longer term outlook appears bright because new manufacturing facilities are under construction. When capacity expands, Singapore's biomedical output is expected to climb and thousands of new jobs are expected to be added to help offset job losses in electronics. In Malaysia, GDP increased 7.1% in 2004, with slower growth in the fourth quarter attributed to a glut of supply in the electronics sector--a significant source of growth for Malaysia and many other economies in Southeast Asia. For 2005, Malaysia's growth is expected to slow to 5.1% as exports to the United States and China decline. Economic growth also slowed late in 2004 for Taiwan, India and South Korea. Strong domestic demand is expected to help support growth in Taiwan in 2005. However, in South Korea household demand has been lackluster since a credit card crisis engulfed the country in 2003. In India, one of the region's poorest economies, a major infrastructure development program is underway. However, with new leadership in place in India, there is hope that fiscal reforms and programs designed to improve productivity could lead to higher long-term growth. [SIDENOTE] SUMMARY: FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 28, 2005 - - SOLID ECONOMIC GROWTH HELPED ASIAN STOCK MARKETS OUTSIDE OF JAPAN GENERATE DOUBLE-DIGIT GAINS. THE MSCI ALL COUNTRY ASIA EX JAPAN INDEX RETURNED 24.85%. - - HONG KONG STOCKS TRAILED THE REGION'S OTHER MARKETS. THE HANG SENG INDEX GAINED 11.60%. - - CHINA LED THE REGION'S ECONOMIC GROWTH, ALTHOUGH THE GOVERNMENT CONTINUES TO SEEK MEASURES TO KEEP GROWTH FROM OVERHEATING. [CHART] <Table> MSCI ALL COUNTRY ASIA EX JAPAN INDEX 24.85% HANG SENG INDEX 11.60% </Table> The MSCI All Country Asia ex Japan Index is an unmanaged index that tracks the performance of equity securities in eleven countries in Asia, excluding Japan, and takes into account local market restrictions on share ownership by foreigners. The Hang Seng Stock Index is an unmanaged index that tracks the stock exchange of Hong Kong. 4 <Page> PORTFOLIO MANAGER'S REPORT COLUMBIA NEWPORT TIGER FUND For the six-month period ended February 28, 2005, Columbia Newport Tiger Fund class A shares returned 22.52% without sales charge. This was less than the 24.85% return of the MSCI All Country Asia ex Japan Index and the 27.22% average return of its peer group, the Lipper Pacific ex Japan Category.(1) Strong economic growth and domestic consumption in China and other smaller markets helped the fund, its benchmark and peer group achieve strong returns for the period. INFRASTRUCTURE DEVELOPMENT AND DOMESTIC CONSUMPTION REMAINED THEMES We continued to emphasize countries that we believed could benefit from infrastructure development and domestic consumption. As a result, the fund had more exposure to Thailand, India and Singapore than the index. All three markets were solid performers for the fund. We also focused on financial stocks--particularly banks and real estate companies. We believe that financial stocks are essential to domestic development and consumption and that they are poised to profit from these trends. This view was rewarded by the strong performance of Kookmin Bank in South Korea, which we added to during the period. Bank Rakyat Indonesia, Oversea-Chinese Banking in Singapore and Bangkok Bank Public in Thailand also contributed to the fund's double-digit gain for the period. In India, Housing Development Finance also gave performance a substantial boost. SEEKING OPPORTUNITY IN HONG KONG On the belief that Hong Kong's long bout with deflation appeared to be coming to an end, we began to build a position in the Hong Kong real estate sector in 2004. In fact, Hong Kong's economy became more inflationary during the period, which should benefit the real estate sector over the long term. Unfortunately, our exposure to the sector turned in mixed results during this six-month period. Shares of Swire Pacific produced a double-digit return while Henderson Land Development, a long-term holding for the fund, declined. We continued to maintain our relatively large position because we believe that the long-term prospects for Hong Kong real estate remain positive. FINDING VALUE IN TAIWAN TECHNOLOGY, OPPORTUNITY IN CONSUMER SPENDING We added to our position in Taiwan, where we took advantage of attractively valued technology stocks. We invested in Optimax Technology and Delta Electronics, which generated positive returns. Two long-term holdings, Hon Hai Precision Industry and Taiwan Semiconductor Manufacturing, also outperformed. A relatively large position in consumer discretionary stocks reflected our outlook for a pick-up in consumer spending. In Hong Kong, retailer Esprit Holdings did well. In Indonesia, PT Astra International, a conglomerate with businesses in the automotive, financial services, agriculture and information technology industries, was positive. Astro All Asia Networks, a Malaysian media company, also aided results. (1) Lipper Inc., a widely respected data provider in the industry, calculates an average total return for mutual funds with similar investment objectives as those of the fund. [SIDENOTE] NET ASSET VALUE PER SHARE AS OF 02/28/05 ($) <Table> Class A 13.82 Class B 13.36 Class C 13.36 Class T 13.90 Class Z 13.86 </Table> DISTRIBUTIONS DECLARED PER SHARE 09/01/04 - 02/28/05 ($) <Table> Class A 0.06 Class B 0.00 Class C 0.00 Class T 0.09 Class Z 0.09 </Table> HOLDINGS DISCUSSED IN THIS REPORT AS OF 02/28/05 (%) <Table> Kookmin Bank 3.9 Bank Rakyat Indonesia 1.1 Oversea-Chinese Banking 1.0 Bangkok Bank Public 2.2 Housing Development Finance 2.0 Swire Pacific 1.5 Henderson Land Development 1.8 Optimax Technology 1.3 Delta Electronics 1.0 Hon Hai Precision Industry 2.5 Taiwan Semiconductor Manufacturing 3.6 Esprit Holdings 2.6 PT Astra International 1.7 Astro All Asia Networks 1.0 </Table> Your fund is actively managed and the composition of its portfolio will change over time. Information provided is calculated as a percentage of net assets. 5 <Page> AVOIDING CYCLICALS DETRACTED FROM PERFORMANCE The fund lost some ground relative to its benchmark because it had less exposure to cyclical stocks, which outperformed during the last two months of the period. Because cyclical stocks are influenced by changes in general economic activity, they tend to be more volatile than the more steady long-term growth stocks that we favor. In particular, the fund missed out on the spectacular gains from energy stocks. However, we will stay with our strategy because we believe in its long-term potential. An underweight in South Korea, which was a strong performer, also had a negative impact on return. South Korea's export-driven economy is one of the most cyclical in Asia. Its prospects are closely linked to US consumer spending; and because we are concerned that the high level of consumer spending in the United States may be unsustainable, we allocated relatively few assets to South Korea. INTERNAL FACTORS COULD DRIVE PERFORMANCE We continue to believe that internal catalysts, such as the build-out of the infrastructure, consumer and business spending and "re-inflation," could drive Asia's economic growth for a long time. As a result, we have kept our focus on companies with the potential to benefit from Asia's many building projects and from the emergence of a consumer society. We will continue to seek opportunity among these types of companies. [PHOTO] Eric Sandlund has managed or co-managed the fund since August 2002. He has been the sole manager of the fund since March 2004. He joined the advisor and its predecessors or affiliate organizations in June 2002. /s/ [ILLEGIBLE] The Board of Trustees has approved a proposal to reorganize the Columbia Newport Tiger Fund into the Columbia International Stock Fund, subject to shareholder approval and the satisfaction of certain other conditions. The effective date of the reorganization is expected to be in the third quarter of 2005 or on such a date on which the parties agree. 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. 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. [SIDENOTE] WE HAVE KEPT OUR FOCUS ON COMPANIES WITH THE POTENTIAL TO BENEFIT FROM ASIA'S MANY BUILDING PROJECTS AND FROM THE EMERGENCE OF A CONSUMER SOCIETY. 6 <Page> FINANCIAL STATEMENTS FEBRUARY 28, 2005 (UNAUDITED) COLUMBIA NEWPORT TIGER FUND A GUIDE TO UNDERSTANDING YOUR FUND'S FINANCIAL STATEMENTS INVESTMENT PORTFOLIO The investment portfolio details all of the fund's holdings and their market value as of the last day of the reporting period. Portfolio holdings are organized by type of asset, industry, country or geographic region (if applicable) to demonstrate areas of concentration and diversification. STATEMENT OF ASSETS AND LIABILITIES This statement details the fund's assets, liabilities, net assets and share price for each share class as of the last day of the reporting period. Net assets are calculated by subtracting all the fund's liabilities (including any unpaid expenses) from the total of the fund's investment and non-investment assets. The share price for each class is calculated by dividing net assets for that class by the number of shares outstanding in that class as of the last day of the reporting period. STATEMENT OF OPERATIONS This statement details income earned by the fund and the expenses accrued by the fund during the reporting period. The Statement of Operations also shows any net gain or loss the fund realized on the sales of its holdings during the period, as well as any unrealized gains or losses recognized over the period. The total of these results represents the fund's net increase or decrease in net assets from operations. STATEMENT OF CHANGES IN NET ASSETS This statement demonstrates how the fund's net assets were affected by its operating results, distributions to shareholders and shareholder transactions (e.g., subscriptions, redemptions and dividend reinvestments) during the reporting period. The Statement of Changes in Net Assets also details changes in the number of shares outstanding. NOTES TO FINANCIAL STATEMENTS These notes disclose the organizational background of the fund, its significant accounting policies (including those surrounding security valuation, income recognition and distributions to shareholders), federal tax information, fees and compensation paid to affiliates and significant risks and contingencies. FINANCIAL HIGHLIGHTS The financial highlights demonstrate how the fund's net asset value per share was affected by the fund's operating results. The financial highlights table also discloses the classes' performance and certain key ratios (e.g., class expenses and net investment income as a percentage of average net assets). 7 <Page> INVESTMENT PORTFOLIO FEBRUARY 28, 2005 (UNAUDITED) COLUMBIA NEWPORT TIGER FUND <Table> <Caption> SHARES VALUE ($) ---------------------------------------------------------------------------------- COMMON STOCKS - 99.8% CONSUMER DISCRETIONARY - 16.5% AUTO COMPONENTS - 1.0% Tong Yang Industry Co., Ltd. 2,334,000 3,586,474 Auto Components Total 3,586,474 AUTOMOBILES - 5.7% Bajaj Auto Ltd. 68,396 1,614,855 Hyundai Motor Co. 150,480 8,612,983 Maruti Udyog Ltd. 353,397 3,831,833 PT Astra International 5,168,000 6,021,092 Automobiles Total 20,080,763 DISTRIBUTORS - 2.9% Li & Fung Ltd. 5,980,000 10,233,528 Distributors Total 10,233,528 HOTELS, RESTAURANTS & LEISURE - 1.0% Genting Berhad 686,300 3,538,075 Hotels, Restaurants & Leisure Total 3,538,075 MEDIA - 3.3% Astro All Asia Networks PLC (a) 2,354,100 3,434,257 Singapore Press Holdings Ltd. 2,829,700 7,932,342 Media Total 11,366,599 SPECIALTY RETAIL - 2.6% Esprit Holdings Ltd. 1,249,500 8,920,564 Specialty Retail Total 8,920,564 ----------- CONSUMER DISCRETIONARY TOTAL 57,726,003 CONSUMER STAPLES - 1.5% FOOD PRODUCTS - 1.5% People's Food Holdings Ltd. 3,134,000 2,602,019 Thai Union Frozen Products Public Co., Ltd. 3,381,800 2,560,066 Food Products Total 5,162,085 ----------- CONSUMER STAPLES TOTAL 5,162,085 FINANCIALS - 36.2% COMMERCIAL BANKS - 19.2% Bangkok Bank Public Co., Ltd., NVDR 2,689,500 7,800,745 Bank Rakyat Indonesia 11,231,000 3,969,029 Chinatrust Financial Holding Co., Ltd. 5,720,111 6,837,586 Dah Sing Financial Group 224,800 1,697,857 Hong Leong Bank Berhad 6,769,600 9,606,258 Kasikornbank Public Co., Ltd., (a) 4,583,600 7,832,395 Kookmin Bank 295,235 13,612,237 Oversea-Chinese Banking Corp., Ltd. 410,000 3,422,833 Standard Chartered PLC 240,106 4,399,257 United Overseas Bank Ltd. 913,000 7,623,602 Commercial Banks Total 66,801,799 DIVERSIFIED FINANCIAL SERVICES - 2.0% Housing Development Finance Corp., Ltd. 389,893 6,942,350 Diversified Financial Services Total 6,942,350 INSURANCE - 3.3% Cathay Financial Holding Co., Ltd. 2,787,000 5,657,663 Samsung Fire & Marine Insurance Co., Ltd. 73,680 5,993,095 Insurance Total 11,650,758 REAL ESTATE - 11.7% City Developments Ltd. 1,591,500 6,593,109 Henderson Land Development Co., Ltd. 1,363,000 6,386,007 Land & Houses Public Co., Ltd., NVDR 18,493,100 4,614,819 SM Prime Holdings, Inc. 21,422,000 3,366,160 Sun Hung Kai Properties Ltd. 1,597,000 14,829,517 Swire Pacific Ltd., Class A 626,500 5,106,149 Real Estate Total 40,895,761 ----------- FINANCIALS TOTAL 126,290,668 </Table> See Accompanying Notes to Financial Statements. 8 <Page> <Table> <Caption> SHARES VALUE ($) ---------------------------------------------------------------------------------- COMMON STOCKS - (CONTINUED) HEALTH CARE - 2.5% HEALTH CARE EQUIPMENT & SUPPLIES - 0.6% Pihsiang Machinery Manufacturing Co., Ltd. 858,825 2,051,799 Health Care Equipment & Supplies Total 2,051,799 PHARMACEUTICALS - 1.9% Dr. Reddy's Laboratories Ltd., ADR 193,900 3,416,518 Ranbaxy Laboratories Ltd. 140,732 3,289,524 Pharmaceuticals Total 6,706,042 ----------- HEALTH CARE TOTAL 8,757,841 INDUSTRIALS - 4.7% ELECTRICAL EQUIPMENT - 1.3% Optimax Technology Corp. 1,604,000 4,533,174 Electrical Equipment Total 4,533,174 INDUSTRIAL CONGLOMERATES - 2.4% China Merchants Holdings International Co., Ltd. 2,170,000 4,527,273 Hutchison Whampoa Ltd. 420,100 3,777,819 Industrial Conglomerates Total 8,305,092 TRANSPORTATION INFRASTRUCTURE - 1.0% Zhejiang Expressway Co., Ltd., Class H 4,932,000 3,556,280 Transportation Infrastructure Total 3,556,280 ----------- INDUSTRIALS TOTAL 16,394,546 INFORMATION TECHNOLOGY - 24.0% COMPUTERS & PERIPHERALS - 2.3% Acer, Inc. 2,074,836 3,376,787 Lite-On Technology Corp. 4,155,200 4,512,263 Computers & Peripherals Total 7,889,050 ELECTRONIC EQUIPMENT & INSTRUMENTS - 6.8% Delta Electronics, Inc., GDR 2,043,000 3,589,642 Hon Hai Precision Industry Co., Ltd. 1,856,206 8,650,221 Interflex Co., Ltd. 104,151 1,993,981 MFS Technology Ltd. 5,518,500 2,709,762 Synnex Technology International Corp. 1,434,900 2,149,893 Venture Corp., Ltd. 517,000 4,572,138 Electronic Equipment & Instruments Total 23,665,637 INTERNET SOFTWARE & SERVICES - 1.0% NCSoft Corp. (a) 50,250 3,607,872 Internet Software & Services Total 3,607,872 IT SERVICES - 2.0% Infosys Technologies Ltd. 140,069 7,176,685 IT Services Total 7,176,685 SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 11.9% Samsung Electronics Co., Ltd. 55,330 28,792,864 Taiwan Semiconductor Manufacturing Co., Ltd. 7,140,390 12,675,691 Semiconductors & Semiconductor Equipment Total 41,468,555 ----------- INFORMATION TECHNOLOGY TOTAL 83,807,799 MATERIALS - 3.8% CONSTRUCTION MATERIALS - 3.4% Siam Cement Public Co., Ltd., NVDR 1,668,200 11,769,375 Construction Materials Total 11,769,375 METALS & MINING - 0.4% Semirara Mining Corp. (a) 1,973,006 1,588,659 Metals & Mining Total 1,588,659 ----------- MATERIALS TOTAL 13,358,034 </Table> See Accompanying Notes to Financial Statements. 9 <Page> <Table> <Caption> SHARES VALUE ($) ---------------------------------------------------------------------------------- COMMON STOCKS - (CONTINUED) TELECOMMUNICATION SERVICES - 6.7% DIVERSIFIED TELECOMMUNICATION SERVICES - 1.1% PT Telekomunikasi Indonesia 8,010,000 3,833,757 Diversified Telecommunication Services Total 3,833,757 WIRELESS TELECOMMUNICATION SERVICES - 5.6% China Mobile Hong Kong Ltd. 3,877,500 12,570,478 Taiwan Cellular Corp. 6,519,000 7,030,345 Wireless Telecommunication Services Total 19,600,823 ----------- TELECOMMUNICATION SERVICES TOTAL 23,434,580 UTILITIES - 3.9% ELECTRIC UTILITIES - 1.4% Datang International Power Generation Co., Ltd., Class H 2,742,000 2,120,018 Huaneng Power International, Inc., Class H 3,492,000 2,700,636 Electric Utilities Total 4,820,654 GAS UTILITIES - 2.4% Hong Kong & China Gas Co., Ltd. 2,800,908 5,939,967 Xinao Gas Holdings Ltd. (a) 4,552,000 2,520,012 Gas Utilities Total 8,459,979 WATER UTILITIES - 0.1% Manila Water Co. (a) 977,200 116,237 Water Utilities Total 116,237 ----------- UTILITIES TOTAL 13,396,870 TOTAL COMMON STOCKS (COST OF $266,623,522) 348,328,426 <Caption> PAR ($) ---------------------------------------------------------------------------------- SHORT-TERM OBLIGATION - 1.0% Repurchase agreement with State Street Bank & Trust Co., dated 02/28/05, due 03/01/05 at 2.520%, collateralized by a U.S. Treasury Bond maturing 11/15/24, market value of $3,597,833 (repurchase proceeds $3,523,247) 3,523,000 3,523,000 TOTAL SHORT-TERM OBLIGATION (COST OF $3,523,000) 3,523,000 TOTAL INVESTMENTS - 100.8% (COST OF $270,146,522) (b) 351,851,426 Other Assets & Liabilities, Net - (0.8)% (2,814,639) Net Assets - 100.0% 349,036,787 </Table> NOTES TO INVESTMENT PORTFOLIO: (a) Non-income producing security. (b) Cost for federal income tax purposes is $270,146,522. See Accompanying Notes to Financial Statements. 10 <Page> <Table> <Caption> ACRONYM NAME ADR American Depositary Receipt GDR Global Depositary Receipt NVDR Non-voting Depositary Receipt <Caption> SUMMARY OF SECURITIES % OF TOTAL BY COUNTRY VALUE ($) INVESTMENTS - -------------------------------------------------------------- Hong Kong 76,509,171 21.8% Taiwan 64,651,537 18.4 South Korea 62,613,032 17.8 Singapore 35,455,805 10.1 Thailand 34,577,400 9.8 India 26,271,765 7.5 Indonesia 13,823,878 3.9 Malaysia 13,144,333 3.7 China 8,376,934 2.4 United Kingdom 7,833,514 2.2 Philippines 5,071,057 1.4 United States* 3,523,000 1.0 ------------- ----- $ 351,851,426 100.0% ============= ===== </Table> * Represents short-term obligation. Certain securities are listed by country of underlying exposure but may trade predominantly on other exchanges. At February 28, 2005, the Fund held investments in the following sectors: <Table> <Caption> SECTOR % OF NET ASSETS - -------------------------------------------------- Financials 36.2% Information Technology 24.0 Consumer Discretionary 16.5 Telecommunication Services 6.7 Industrials 4.7 Utilities 3.9 Materials 3.8 Health Care 2.5 Consumer Staples 1.5 Short-Term Obligation 1.0 Other Assets & Liabilities, Net (0.8) ----- 100.0% ===== </Table> See Accompanying Notes to Financial Statements. 11 <Page> STATEMENT OF ASSETS AND LIABILITIES FEBRUARY 28, 2005 (UNAUDITED) COLUMBIA NEWPORT TIGER FUND <Table> <Caption> ($) ------------------------------------------------------------------------------------- ASSETS Investments, at cost 270,146,522 ------------ Investments, at value 351,851,426 Cash 680 Foreign currency (cost of $889,027) 897,120 Receivable for: Fund shares sold 437,414 Interest 247 Dividends 590,216 Deferred Trustees' compensation plan 26,216 Receivable from advisor 266,581 ------------ Total Assets 354,069,900 LIABILITIES Expense reimbursement due to Investment Advisor 14,272 Payable for: Investments purchased 366,442 Fund shares repurchased 742,227 Investment advisory fee 195,262 Administration fee 71,464 Transfer agent fee 188,821 Pricing and bookkeeping fees 12,745 Custody fee 43,205 Distribution and service fees 93,907 Deferred Trustees' fees 26,216 Foreign capital gains tax payable 3,226,023 Other liabilities 52,529 ------------ Total Liabilities 5,033,113 NET ASSETS 349,036,787 COMPOSITION OF NET ASSETS Paid-in capital 417,768,258 Overdistributed net investment income (889,564) Accumulated net realized loss (146,345,983) Net unrealized appreciation (depreciation) on: Investments 81,704,904 Foreign currency translations 25,195 Foreign capital gains tax (3,226,023) ------------ NET ASSETS 349,036,787 CLASS A Net assets 196,705,493 Shares outstanding 14,229,632 Net asset value per share 13.82(a)(b) Maximum offering price per share ($13.82/0.9425) 14.66(c) CLASS B Net assets 66,451,365 Shares outstanding 4,973,059 Net asset value and offering price per share 13.36(a)(b) CLASS C Net assets 28,642,347 Shares outstanding 2,144,456 Net asset value and offering price per share 13.36(a)(b) CLASS T Net assets 29,007,867 Shares outstanding 2,087,460 Net asset value per share 13.90(a)(b) Maximum offering price per share ($13.90/0.9425) 14.75(c) CLASS Z Net assets 28,229,715 Shares outstanding 2,037,019 Net asset value, offering and redemption price per share 13.86(b) </Table> (a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. (b) Redemption price per share is equal to net asset value less any applicable redemption fee. (c) On sales of $50,000 or more the offering price is reduced. See Accompanying Notes to Financial Statements. 12 <Page> STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED COLUMBIA NEWPORT TIGER FUND FEBRUARY 28, 2005 (UNAUDITED) <Table> <Caption> ($) ------------------------------------------------------------------------------------ INVESTMENT INCOME Dividends 2,424,745 Interest 25,141 ------------ Total Investment Income (net of foreign taxes withheld of $373,751) 2,449,886 EXPENSES Investment advisory fee 1,229,117 Administration fee 414,477 Distribution fee: Class B 268,543 Class C 100,796 Service fee: Class A 221,597 Class B 89,514 Class C 33,599 Transfer agent fee 589,750 Pricing and bookkeeping fees 49,688 Trustees' fees 6,339 Custody fee 253,105 Non-recurring costs (See Note 8) 2,925 Other expenses 138,421 ------------ Total Expenses 3,397,871 Fees and expenses waived or reimbursed by Investment Advisor (121,673) Non-recurring costs assumed by Investment Advisor (See Note 8) (2,925) Custody earnings credit (215) ------------ Net Expenses 3,273,058 ------------ Net Investment Loss (823,172) NET REALIZED AND UNREALIZED GAIN Net realized gain (loss) on: (LOSS) ON INVESTMENTS, FOREIGN Investments 20,451,511 CURRENCY AND FOREIGN CAPITAL GAINS Foreign currency transactions 65,615 TAX Foreign capital gains tax (869,607) ------------ Net realized gain 19,647,519 Net change in unrealized appreciation/depreciation on: Investments 48,715,125 Foreign currency translations 29,869 Foreign capital gains tax (263,979) ------------ Net change in unrealized appreciation/depreciation 48,481,015 ------------ Net Gain 68,128,534 ------------ Net Increase in Net Assets from Operations 67,305,362 </Table> See Accompanying Notes to Financial Statements. 13 <Page> STATEMENT OF CHANGES IN NET ASSETS COLUMBIA NEWPORT TIGER FUND <Table> <Caption> (UNAUDITED) SIX MONTHS ENDED YEAR ENDED FEBRUARY 28, AUGUST 31, INCREASE (DECREASE) IN NET ASSETS: 2005 ($) 2004 ($) - ----------------------------------- ------------------------------------------------------------------------------------------ OPERATIONS Net investment income (loss) (823,172) 2,724,097 Net realized gain on investments, foreign currency transactions and foreign capital gains tax 19,647,519 52,456,071 Net change in unrealized appreciation/depreciation on investments, foreign currency translations and foreign capital gains tax 48,481,015 (13,682,184) --------------------------- Net Increase from Operations 67,305,362 41,497,984 DISTRIBUTIONS DECLARED TO SHAREHOLDERS From net investment income: Class A (832,260) (831,594) Class B -- (88,934) Class C -- (19,088) Class T (192,228) (212,355) Class Z (196,654) (507,109) --------------------------- Total Distributions Declared to Shareholders (1,221,142) (1,659,080) SHARE TRANSACTIONS Class A: Subscriptions 22,674,084 76,583,422 Distributions reinvested 746,684 736,922 Redemptions (21,305,115) (63,211,242) --------------------------- Net Increase 2,115,653 14,109,102 Class B: Subscriptions 1,761,380 7,826,538 Distributions reinvested -- 73,423 Redemptions (25,351,964) (64,347,868) --------------------------- Net Decrease (23,590,584) (56,447,907) Class C: Subscriptions 1,079,596 8,349,434 Distributions reinvested -- 14,267 Redemptions (3,056,755) (8,061,406) --------------------------- Net Increase (Decrease) (1,977,159) 302,295 Class T: Subscriptions 49,937 278,751 Distributions reinvested 170,264 188,281 Redemptions (3,367,902) (4,334,649) --------------------------- Net Decrease (3,147,701) (3,867,617) Class Z: Subscriptions 1,063,243 5,844,590 Distributions reinvested 152,477 470,180 Redemptions (4,860,784) (52,802,123) --------------------------- Net Decrease (3,645,064) (46,487,353) Net Decrease from Share Transactions (30,244,855) (92,391,480) Redemption fees 1,635 1,780 --------------------------- Total Increase (Decrease) in Net Assets 35,841,000 (52,550,796) NET ASSETS Beginning of period 313,195,787 365,746,583 End of period (including (overdistributed) undistributed net investment income of $(889,564) and $1,154,750, respectively) 349,036,787 313,195,787 </Table> See Accompanying Notes to Financial Statements. 14 <Page> <Table> <Caption> (UNAUDITED) SIX MONTHS ENDED YEAR ENDED FEBRUARY 28, AUGUST 31, INCREASE (DECREASE) IN NET ASSETS: 2005 ($) 2004 ($) - ----------------------------------- ------------------------------------------------------------------------------------------ CHANGES IN SHARES Class A: Subscriptions 1,772,824 6,737,793 Capital contribution 6,364 Issued for distributions reinvested 56,567 65,914 Redemptions (1,682,335) (5,611,266) --------------------------- Net Increase 153,420 1,192,441 Class B: Subscriptions 141,491 703,687 Capital contribution 543 Issued for distributions reinvested -- 6,780 Redemptions (2,080,353) (5,805,997) --------------------------- Net Decrease (1,938,319) (5,095,530) Class C: Subscriptions 88,019 763,277 Capital contribution 393 Issued for distributions reinvested -- 1,315 Redemptions (251,670) (739,255) --------------------------- Net Increase (Decrease) (163,258) 25,337 Class T: Subscriptions 3,910 24,700 Capital contribution 8 Issued for distributions reinvested 12,840 16,780 Redemptions (265,431) (377,383) --------------------------- Net Decrease (248,673) (335,903) Class Z: Subscriptions 81,368 501,244 Capital contribution 247 Issued for distributions reinvested 11,534 42,018 Redemptions (378,022) (4,535,587) --------------------------- Net Decrease (284,873) (3,992,325) </Table> See Accompanying Notes to Financial Statements. 15 <Page> NOTES TO FINANCIAL STATEMENTS FEBRUARY 28, 2005 (UNAUDITED) COLUMBIA NEWPORT TIGER FUND NOTE 1. ORGANIZATION Columbia Newport Tiger Fund (the "Fund"), a series of Columbia Funds Trust VII (the "Trust"), is a diversified portfolio. The Trust is a Massachusetts business trust registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. INVESTMENT GOAL The Fund seeks capital appreciation by investing primarily in equity securities of companies located in the Tiger countries of Asia. The countries or regions in which the Fund invests include Hong Kong, Singapore, South Korea, Taiwan, Malaysia, Thailand, India, Indonesia, China and the Philippines. FUND SHARES The Fund may issue an unlimited number of shares and offers five classes of shares: Class A, Class B, Class C, Class T and Class Z. Each share class has its own sales charge and expense structure. Class A and Class T shares are subject to a maximum front-end sales charge of 5.75% based on the amount of initial investment. Class A and Class T shares purchased without an initial sales charge in accounts aggregating $1 million to $25 million at the time of purchase are subject to a 1.00% contingent deferred sales charge ("CDSC") on shares sold within eighteen months of the time of purchase. Class B shares are subject to a maximum CDSC of 5.00% based upon the holding period after purchase. Class B shares will convert to Class A shares in a certain number of years after purchase, depending on the program under which shares were purchased. Class C shares are subject to a 1.00% CDSC on shares sold within one year after purchase. Class Z shares are offered continuously at net asset value. There are certain restrictions on the purchase of Class Z shares, as described in the Fund's prospectus. NOTE 2. SIGNIFICANT ACCOUNTING POLICIES USE OF ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. SECURITY VALUATION Equity securities are valued at the last sale price 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. Short-term debt obligations maturing within 60 days are valued at amortized cost, which approximates market value. 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 Fund's shares are determined as of such times. Foreign currency exchange rates are generally determined at 2:00 p.m. Eastern (U.S.) time. Events affecting the values of such foreign securities and such exchange rates may occur between the times at which they are determined and the close of the customary trading session of the NYSE, which would not be reflected in the computation of the Fund's net asset value. If events materially affecting the values of such foreign securities occur and it is determined that market quotations are not reliable, then these foreign securities will be valued at their fair value using procedures approved by the Board of Trustees. The Fund may use a systematic fair valuation model provided by an independent third party to value securities principally traded in foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time for valuation. If a security is valued at a "fair value", such value is likely to be different from the last quoted market price for the security. 16 <Page> Investments for which market quotations are not readily available, or quotations which management believes are not appropriate, are valued at fair value under procedures approved by the Board of Trustees. SECURITY TRANSACTIONS Security transactions are accounted for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes. REPURCHASE AGREEMENTS The Fund may engage in repurchase agreement transactions with institutions that the Fund's investment advisor has determined are creditworthy. The Fund, through its custodian, receives delivery of underlying securities collateralizing a repurchase agreement. Collateral is at least equal, at all times, to the value of the repurchase obligation including interest. A repurchase agreement transaction involves certain risks in the event of default or insolvency of the counterparty. These risks include possible delays or restrictions upon the Fund's ability to dispose of the underlying securities and a possible decline in the value of the underlying securities during the period while the Fund seeks to assert its rights. INCOME RECOGNITION Interest income is recorded on the accrual basis. Corporate actions and dividend income are recorded on the ex-date, except for certain foreign securities which are recorded as soon after ex-date as the Fund becomes aware of such, net of non-reclaimable tax withholdings. 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 Fund does not distinguish that portion of gains (losses) on investments which is due to changes in foreign exchange rates from that which is due to changes in market prices of the investments. Such fluctuations are included with the net realized and unrealized gains (losses) on investments. DETERMINATION OF CLASS NET ASSET VALUES All income, expenses (other than class-specific expenses, as shown on the Statement of Operations), and realized and unrealized gains (losses), are allocated to each class of the Fund on a daily basis, based on the relative net assets of each class, for purposes of determining the net asset value of each class. FEDERAL INCOME TAX STATUS The Fund intends to qualify each year as a "regulated investment company" under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its taxable income, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, the 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 the 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 Fund accrues for such foreign taxes on net realized and unrealized gains at the appropriate rate for each jurisdiction. DISTRIBUTIONS TO SHAREHOLDERS Distributions to shareholders are recorded on ex-date. Net realized capital gains, if any, are distributed at least annually. NOTE 3. FEDERAL TAX INFORMATION The tax character of distributions paid during the year ended August 31, 2004 was as follows: <Table> <Caption> AUGUST 31, 2004 --------------- Distributions paid from: Ordinary income $ 1,659,080 </Table> Unrealized appreciation and depreciation at February 28, 2005, based on cost of investments for federal income tax purposes and excluding any unrealized appreciation and 17 <Page> depreciation from changes in the value of other assets and liabilities resulting from changes in exchange rates, was: <Table> Unrealized appreciation $ 96,211,760 Unrealized depreciation (14,506,856) ------------- Net unrealized appreciation $ 81,704,904 </Table> The following capital loss carryforwards, determined as of August 31, 2004, may be available to reduce taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code: <Table> <Caption> YEAR OF CAPITAL LOSS EXPIRATION CARRYFORWARD ---------- ------------- 2006 $ 143,826,658 2007 22,164,746 $ 165,991,404 </Table> 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 Fund and receives a monthly investment advisory fee based on the Fund's average daily net assets at the following annual rates: <Table> <Caption> AVERAGE DAILY NET ASSETS ANNUAL FEE RATE ------------------------ --------------- First $1 billion 0.70% Next $500 million 0.62% Next $1.5 billion 0.57% Next $3 billion 0.52% Over $6 billion 0.47% </Table> Prior to November 1, 2004, Columbia received a monthly investment advisory fee based on the Fund's average daily net assets as follows: <Table> <Caption> AVERAGE DAILY NET ASSETS ANNUAL FEE RATE ------------------------ --------------- First $100 million 1.00% Next $1.4 billion 0.75% Next $1.0 billion 0.70% Over $2.5 billion 0.65% </Table> For the six months ended February 28, 2005, the Fund's annualized effective investment advisory fee rate was 0.74%. In connection with the Fund's investments in India, Columbia adopted a more conservative interpretation of tax regulations governing certain corporate actions. As a result, Columbia elected to reimburse the Fund $266,581 or $0.01, $0.03, $0.01, $0.01 and $0.01 per share for Class A, B, C, T and Z, respectively, and the Fund issued additional Class A, B, C, T and Z shares of 6,364,543, 393, 8 and 247 shares, respectively, to shareholders purchasing shares during the period prior to this change in interpretation. ADMINISTRATION FEES Columbia provides administrative and other services to the Fund for a monthly administration fee at the annual rate of 0.25% of the Fund's average daily net assets. PRICING AND BOOKKEEPING FEES Columbia is responsible for providing pricing and bookkeeping services to the Fund under a pricing and bookkeeping agreement. Under a separate agreement (the "Outsourcing Agreement"), Columbia has delegated those functions to State Street Corporation ("State Street"). As a result, Columbia pays the total fees collected to State Street under the Outsourcing Agreement. Under its pricing and bookkeeping agreement with the Fund, Columbia receives from the Fund an annual flat fee of $10,000 paid monthly, and in any month that the Fund's average daily net assets exceed $50 million, an additional monthly fee. The additional fee rate is calculated by taking into account the fees payable to State Street under the Outsourcing Agreement. This rate is applied to the average daily net assets of the Fund for that month The Fund also pays additional fees for pricing services based on the number of securities held by the Fund. For the six months ended February 28, 2005, the Fund's annualized effective pricing and bookkeeping fee rate, inclusive of out-of-pocket expenses, was 0.030% TRANSFER AGENT FEES Columbia Funds Services, Inc. (the "Transfer Agent"), an affiliate of Columbia, provides shareholder services to the Fund and has subcontracted with Boston Financial Data Services ("BFDS") to serve as sub-transfer agent. For such services, the Transfer Agent receives a fee, paid monthly, at the annual rate of $28.00 per open account. The Transfer Agent also receives reimbursement for certain out-of-pocket expenses. 18 <Page> For the six-months ended February 28, 2005, the Fund's annualized effective transfer agent fee rate, inclusive of out-of-pocket expenses, was 0.36%. UNDERWRITING DISCOUNTS, SERVICE AND DISTRIBUTION FEES Columbia Funds Distributor, Inc. (the "Distributor"), an affiliate of Columbia, is the principal underwriter of the Fund. For the six months ended February 28, 2005, the Distributor has retained net underwriting discounts of $8,542 and $282 on sales of the Fund's Class A and Class T shares, respectively. The Distributor has also received CDSC fees of $33,535 and $1,883 on Class B and Class C share redemptions, respectively for the period. The Fund has adopted a 12b-1 plan (the "Plan") which requires the payment of a monthly service fee to the Distributor at the annual rate of 0.25% of the average daily net assets attributable to Class A, Class B and Class C shares of the Fund. The Plan also requires the payment of a monthly distribution fee to the Distributor at the annual rate of 0.75% of the average daily net assets attributable to Class B and Class C shares only. The CDSC and the fees received from the Plan are used principally as repayment to the Distributor for amounts paid by the Distributor to dealers who sold such shares. EXPENSE LIMITS AND FEE REIMBURSEMENTS Columbia has voluntarily agreed to waive fees and reimburse certain expenses to the extent that total expenses (exclusive of distribution and service fees, brokerage commissions, interest, taxes and extraordinary expenses, if any) exceed 1.55% annually of the Fund's average daily net assets. This arrangement may be revised or discontinued by Columbia at any time. CUSTODY CREDITS The Fund has an agreement with its custodian bank under which custody fees may be reduced by balance credits. The Fund could have invested a portion of the assets utilized in connection with the expense offset arrangement in an income-producing asset if it had not entered into such an agreement. FEES PAID TO OFFICERS AND TRUSTEES With the exception of one officer, all officers of the Fund are employees of Columbia or its affiliates and receive no compensation from the Fund. Effective August 23, 2004, the Board of Trustees appointed a Chief Compliance Officer to the Fund in accordance with federal securities regulations. The Fund, along with other affiliated funds, will pay its pro-rata share of the expenses associated with the Office of the Chief Compliance Officer. The Fund's fee will not exceed $15,000 per year. The Fund's Trustees may participate in a deferred compensation plan which may be terminated at any time. Obligations of the plan will be paid solely out of the Fund's assets. OTHER Columbia provides certain services to the Fund related to Sarbanes-Oxley compliance. For the six months ended February 28, 2005, the Fund paid $924 to Columbia for such services. This amount is included in "Other expenses" on the Statement of Operations. NOTE 5. PORTFOLIO INFORMATION For the six months ended February 28, 2005, the cost of purchases and proceeds from sales of securities, excluding short-term obligations, were $36,455,379 and $65,226,899, respectively. NOTE 6. REDEMPTION FEES The 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 Fund also began imposing a 2.00% redemption fee to shareholders of Class A, Class B, Class C and Class T shares who redeem shares held for 60 days or less. Redemption fees, which are retained by the Fund, are accounted for as an addition to paid-in capital and are allocated to each class proportionately for purposes of determining the net asset value of each class. For the six months ended February 28, 2005, the redemption fees for Class A, Class B, Class C, Class T and Class Z shares of the Fund amounted to $901, $332, $134, $137 and $131. NOTE 7. LINE OF CREDIT The Fund 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 19 <Page> 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 Statement of Operations. For the six months ended February 28, 2005, the Fund did not borrow under this arrangement. NOTE 8. DISCLOSURE OF SIGNIFICANT RISKS AND CONTINGENCIES FOREIGN SECURITIES There are certain additional risks involved when investing in foreign securities that are not inherent with investments in domestic securities. These risks may involve foreign currency exchange rate fluctuations, adverse political and economic developments and the possible prevention of currency exchange or other foreign governmental laws or restrictions. In addition, the liquidity of foreign securities may be more limited than that of domestic securities. Investments in emerging market countries are subject to additional risk. The risk of foreign investments is typically increased in less developed countries. These countries are also more likely to experience high levels of inflation, deflation or currency devaluation which could hurt their economies and securities markets. GEOGRAPHIC CONCENTRATION Because the Fund's investments are concentrated in the Tiger countries of Asia, events within the region will have a greater effect on the Fund than if the Fund were more geographically diversified. In addition, events in any one country within the region may impact the other countries or the region as a whole. Markets in the region can experience significant volatility due to social, regulatory and political uncertainties. INDUSTRY FOCUS The Fund may focus its investments in certain industries, subjecting it to greater risk than a fund that is more diversified. LEGAL PROCEEDINGS On February 9, 2005, Columbia and Columbia Funds Distributor, Inc. (collectively the "Columbia Group") entered into an Assurance of Discontinuance with the New York Attorney General ("NYAG") ( the "NYAG Settlement") and consented to the entry of a cease-and-desist order by the Securities and Exchange Commission ("SEC") (the "SEC Order"). The SEC Order and the NYAG Settlement are referred to collectively as the "Settlements". The Settlements contain substantially the same terms and conditions as outlined in the agreements in principle which Columbia Group entered into with the SEC and NYAG in March 2004. Under the terms of the SEC Order, the Columbia Group has agreed, among other things, to: pay $70 million in disgorgement and $70 million in civil money penalties; cease and desist from violations of the antifraud provisions and certain other provisions of the federal securities laws; maintain certain compliance and ethics oversight structures; retain an independent consultant to review the Columbia Group's applicable supervisory, compliance, control and other policies and procedures; and retain an independent distribution consultant (see below). The Columbia Funds have also voluntarily undertaken to implement certain governance measures designed to maintain the independence of their boards of trustees. The NYAG Settlement also, among other things, requires Columbia and its affiliates, Banc of America Capital Management, LLC and BACAP Distributors LLC to reduce certain Columbia Funds, Nations Funds and other mutual fund management fees collectively by $32 million per year for five years, for a projected total of $160 million in management fee reductions. Pursuant to the procedures set forth in the SEC Order, the $140 million in settlement amounts described above will be distributed in accordance with a distribution plan to be developed by an independent distribution consultant, who is acceptable to the SEC staff and the Columbia Funds' independent trustees. The distribution plan must be based on a methodology developed in consultation with the Columbia Group and the Fund's independent trustees and not unacceptable to the staff of the SEC. As a result of these matters or any adverse publicity or other developments resulting from them, there may be increased redemptions or reduced sales of fund shares, which could increase transaction costs or operating expenses, or have other adverse consequences for the funds. A copy of the SEC Order is available on the SEC website at http://www.sec.gov. A copy of the NYAG 20 <Page> Settlement is available as part of the Bank of America Corporation Form 8-K filing on February 10, 2005. In connection with the events described in detail above, various parties have filed suit against certain funds, their Boards and/or Bank of America (and affiliated entities). More than 300 cases (including those filed against entities unaffiliated with the funds, their Boards and/or FleetBoston and its affiliated entities) have been consolidated in a multi-district proceeding and transferred to the Federal District Court in Maryland. Recently, certain Columbia funds and affiliated entities have been named as defendants in several direct and derivative actions under various sections of the Investment Company Act of 1940, as amended, alleging, among other things, that the fees and expenses paid by those funds are excessive. On January 11, 2005 a putative class action lawsuit was filed in federal district court in Massachusetts against, among others, the Trustees of the Funds and Columbia. The lawsuit alleges that defendants violated common law duties to fund shareholders as well as sections of the Investment Company Act of 1940, by failing to ensure that the Fund and other affiliated funds participated in securities class action settlements for which the funds were eligible. Specifically, plaintiffs allege that defendants failed to submit proof of claims in connection with settlements of securities class action lawsuits filed against companies in which the funds held positions. On March 2, 2005, four civil revenue sharing actions alleging, among other things, that various mutual funds advised by Columbia Management and certain other affiliates inappropriately used fund assets to pay brokers to promote the funds by directing fund brokerage transactions to such brokers and did not fully disclose such arrangements to shareholders, and charged excessive 12b-1 fees, were consolidated into a single action in the United States District Court for Massachusetts (In re Columbia Entities Litigation, Civil Action No. 04-11704-REK). The consolidated complaint has not yet been filed. The funds and the other defendants to these actions, including Columbia and various of its affiliates, certain other mutual funds advised by Columbia and its affiliates, and various directors of such funds, have denied these allegations and are contesting the plaintiffs' claims. These proceedings are ongoing, however, based on currently available information, Columbia believes that these lawsuits are without merit, that the likelihood they will have a material adverse impact on any fund is remote, and that the lawsuits are not likely to materially affect its ability to provide investment management services to its clients, including the funds. For the six months ended February 28, 2005, Columbia has assumed $2,925 of legal, consulting services and Trustees' fees incurred by the Fund in connection with these matters. NOTE 9. PROPOSED REORGANIZATION On February 10, 2005, the Board of Trustees approved a proposal to merge the Columbia Newport Tiger Fund into the Columbia International Stock Fund, subject to shareholder approval and the satisfaction of certain other conditions. The merger is expected to be completed in September 2005. 21 <Page> FINANCIAL HIGHLIGHTS COLUMBIA NEWPORT TIGER FUND SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS: <Table> <Caption> (UNAUDITED) SIX MONTHS YEAR PERIOD ENDED ENDED ENDED FEBRUARY 28, AUGUST 31, AUGUST 31, CLASS A SHARES 2005 2004 2003(a) - ----------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 11.33 $ 10.24 $ 8.14 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (b) (0.02) 0.13 0.07 Net realized and unrealized gain (loss) on investments and foreign currency and foreign capital gains tax 2.57 1.02 2.03 ------------ ---------- ---------- Total from Investment Operations 2.55 1.15 2.10 LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS: From net investment income (0.06) (0.06) -- REDEMPTION FEES: Redemption fees added to paid in capital --(b)(c) --(b)(c) -- NET ASSET VALUE, END OF PERIOD $ 13.82 $ 11.33 $ 10.24 Total return (d) 22.52%(e)(f) 11.27%(e) 25.80%(e)(f) RATIOS TO AVERAGE NET ASSETS/ SUPPLEMENTAL DATA: Operating expenses (g) 1.79%(h) 1.80% 1.80%(h) Interest expense -- --%(i) --%(h)(i) Expenses (g) 1.79%(h) 1.80% 1.80%(h) Net investment income (loss) (g) (0.32)%(h) 1.18% 1.21%(h) Waiver/reimbursement 0.07%(h) 0.13% 0.20%(h) Portfolio turnover rate 11%(f) 32% 18%(f) Net assets, end of period (000's) $ 196,705 $ 159,489 $ 131,974 <Caption> YEAR ENDED DECEMBER 31, ----------------------------------------------------- CLASS A SHARES 2002 2001 2000 1999 - ------------------------------------------------------------------------------------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 9.38 $ 11.34 $ 13.47 $ 7.78 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (b) 0.05 0.08 0.01 0.09 Net realized and unrealized gain (loss) on investments and foreign currency and foreign capital gains tax (1.25) (1.95) (2.14) 5.60 --------- --------- --------- --------- Total from Investment Operations (1.20) (1.87) (2.13) 5.69 LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS: From net investment income (0.04) (0.09) -- -- REDEMPTION FEES: Redemption fees added to paid in capital -- -- -- -- NET ASSET VALUE, END OF PERIOD $ 8.14 $ 9.38 $ 11.34 $ 13.47 Total return (d) (12.83)%(e) (16.55)%(e) (15.81)% 73.14% RATIOS TO AVERAGE NET ASSETS/ SUPPLEMENTAL DATA: Operating expenses (g) 1.80% 1.80% 1.71% 1.77% Interest expense 0.01% --%(i) -- -- Expenses (g) 1.81% 1.80% 1.71% 1.77% Net investment income (loss) (g) 0.54% 0.75% 0.07% 0.97% Waiver/reimbursement 0.07% --%(i) -- -- Portfolio turnover rate 25% 12% 25% 14% Net assets, end of period (000's) $ 108,240 $ 178,145 $ 321,671 $ 403,082 </Table> (a) The Fund has changed its fiscal year end from December 31 to August 31. (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 initial sales charge or contingent deferred sales charge. (e) Had the Investment Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. (i) Rounds to less than 0.01%. 22 <Page> <Table> <Caption> (UNAUDITED) SIX MONTHS YEAR PERIOD ENDED ENDED ENDED FEBRUARY 28, AUGUST 31, AUGUST 31, CLASS B SHARES 2005 2004 2003(a) - ----------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 10.92 $ 9.90 $ 7.90 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (b) (0.06) 0.01 0.03 Net realized and unrealized gain (loss) on investments, foreign currency and foreign capital gains tax 2.50 1.02 1.97 ------------ ---------- ---------- Total from Investment Operations 2.44 1.03 2.00 LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS: From net investment income -- (0.01) -- REDEMPTION FEES: Redemption fees added to paid in capital --(b)(c) --(b)(c) -- NET ASSET VALUE, END OF PERIOD $ 13.36 $ 10.92 $ 9.90 Total return (d) 22.34%(e)(f) 10.38%(e) 25.32%(e)(f) RATIOS TO AVERAGE NET ASSETS/ SUPPLEMENTAL DATA: Operating expenses (g) 2.54%(h) 2.55% 2.55%(h) Interest expense -- --%(i) --%(h)(i) Expenses (g) 2.54%(h) 2.55% 2.55%(h) Net investment income (loss) (g) (1.07)%(h) 0.07% 0.49%(h) Waiver/reimbursement 0.07%(h) 0.13% 0.20%(h) Portfolio turnover rate 11%(f) 32% 18%(f) Net assets, end of period (000's) $ 66,451 $ 75,473 $ 118,849 <Caption> YEAR ENDED DECEMBER 31, ----------------------------------------------------- CLASS B SHARES 2002 2001 2000 1999 - ----------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 9.14 $ 11.05 $ 13.23 $ 7.70 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (b) (0.02) --(c) (0.08) 0.02 Net realized and unrealized gain (loss) on investments, foreign currency and foreign capital gains tax (1.22) (1.89) (2.10) 5.51 --------- --------- --------- --------- Total from Investment Operations (1.24) (1.89) (2.18) 5.53 LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS: From net investment income -- (0.02) -- -- REDEMPTION FEES: Redemption fees added to paid in capital -- -- -- -- NET ASSET VALUE, END OF PERIOD $ 7.90 $ 9.14 $ 11.05 $ 13.23 Total return (d) (13.57)%(e) (17.12)%(e) (16.48)% 71.82% RATIOS TO AVERAGE NET ASSETS/ SUPPLEMENTAL DATA: Operating expenses (g) 2.55% 2.55% 2.46% 2.52% Interest expense 0.01% --%(i) -- -- Expenses (g) 2.56% 2.55% 2.46% 2.52% Net investment income (loss) (g) (0.21)% --%(i) (0.68)% 0.22% Waiver/reimbursement 0.07% --%(i) -- -- Portfolio turnover rate 25% 12% 25% 14% Net assets, end of period (000's) $ 112,942 $ 164,354 $ 265,219 $ 407,179 </Table> (a) The Fund has changed its fiscal year end from December 31 to August 31. (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 or reimbursed a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. (i) Rounds to less than 0.01%. 23 <Page> <Table> <Caption> (UNAUDITED) SIX MONTHS YEAR PERIOD ENDED ENDED ENDED FEBRUARY 28, AUGUST 31, AUGUST 31, CLASS C SHARES 2005 2004 2003(a) - ----------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 10.93 $ 9.91 $ 7.91 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (b) (0.06) 0.04 0.03 Net realized and unrealized gain (loss) on investments, foreign currency and foreign capital gain tax 2.49 0.99 1.97 ------------ ---------- ---------- Total from Investment Operations 2.43 1.03 2.00 LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS: From net investment income -- (0.01) -- REDEMPTION FEES: Redemption fees added to paid in capital --(b)(c) --(b)(c) -- NET ASSET VALUE, END OF PERIOD $ 13.36 $ 10.93 $ 9.91 Total return (d) 22.23%(e)(f) 10.37%(e) 25.28%(e)(f) RATIOS TO AVERAGE NET ASSETS/ SUPPLEMENTAL DATA: Operating expenses (g) 2.54%(h) 2.55% 2.55%(h) Interest expense -- --%(i) --%(h)(i) Expenses (g) 2.54%(h) 2.55% 2.55%(h) Net investment income (loss) (g) (1.07)%(h) 0.36% 0.49%(h) Waiver/reimbursement 0.07%(h) 0.13% 0.20%(h) Portfolio turnover rate 11%(f) 32% 18%(f) Net assets, end of period (000's) $ 28,642 $ 25,234 $ 22,619 <Caption> YEAR ENDED DECEMBER 31, ----------------------------------------------------- CLASS C SHARES 2002 2001 2000 1999 - ------------------------------------------------------------------------------------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 9.15 $ 11.07 $ 13.25 $ 7.71 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (b) (0.02) --(c) (0.08) 0.02 Net realized and unrealized gain (loss) on investments, foreign currency and foreign capital gain tax (1.22) (1.90) (2.10) 5.52 --------- --------- --------- --------- Total from Investment Operations (1.24) (1.90) (2.18) 5.54 LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS: From net investment income -- (0.02) -- -- REDEMPTION FEES: Redemption fees added to paid in capital -- -- -- -- NET ASSET VALUE, END OF PERIOD $ 7.91 $ 9.15 $ 11.07 $ 13.25 Total return (d) (13.55)%(e) (17.18)%(e) (16.45)% 71.85% RATIOS TO AVERAGE NET ASSETS/ SUPPLEMENTAL DATA: Operating expenses (g) 2.55% 2.55% 2.46% 2.52% Interest expense 0.01% --%(i) -- -- Expenses (g) 2.56% 2.55% 2.46% 2.52% Net investment income (loss) (g) (0.21)% --%(i) (0.68)% 0.22% Waiver/reimbursement 0.07% --%(i) -- -- Portfolio turnover rate 25% 12% 25% 14% Net assets, end of period (000's) $ 19,866 $ 28,036 $ 42,897 $ 73,038 </Table> (a) The Fund has changed its fiscal year end from December 31 to August 31. (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 or reimbursed a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. (i) Rounds to less than 0.01%. 24 <Page> <Table> <Caption> (UNAUDITED) SIX MONTHS YEAR PERIOD ENDED ENDED ENDED FEBRUARY 28, AUGUST 31, AUGUST 31, CLASS T SHARES 2005 2004 2003(a) - ----------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 11.39 $ 10.29 $ 8.16 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (b) --(c) 0.15 0.08 Net realized and unrealized gain (loss) on investments and foreign currency and foreign captial gains tax 2.60 1.03 2.05 ------------ ---------- ---------- Total from Investment Operations 2.60 1.18 2.13 LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS: From net investment income (0.09) (0.08) -- REDEMPTION FEES: Redemption fees added to paid in capital --(b)(c) --(b)(c) -- NET ASSET VALUE, END OF PERIOD $ 13.90 $ 11.39 $ 10.29 Total return (d) 22.84%(e)(f) 11.50%(e) 26.10%(e)(f) RATIOS TO AVERAGE NET ASSETS/ SUPPLEMENTAL DATA: Operating expenses (g) 1.54%(h) 1.55% 1.55%(h) Interest expense -- --%(i) --%(h)(i) Expenses (g) 1.54%(h) 1.55% 1.55%(h) Net investment income (loss) (g) (0.07)%(h) 1.30% 1.50%(h) Waiver/reimbursement 0.07%(h) 0.13% 0.20%(h) Portfolio turnover rate 11%(f) 32% 18%(f) Net assets, end of period (000's) $ 29,008 $ 26,615 $ 27,501 <Caption> YEAR ENDED DECEMBER 31, ------------------------------------------------------ CLASS T SHARES 2002 2001 2000 1999 - ------------------------------------------------------------------------------------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 9.41 $ 11.38 $ 13.48 $ 7.77 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (b) 0.08 0.10 0.04 0.12 Net realized and unrealized gain (loss) on investments and foreign currency and foreign captial gains tax (1.27) (1.96) (2.14) 5.59 ---------- --------- --------- --------- Total from Investment Operations (1.19) (1.86) (2.10) 5.71 LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS: From net investment income (0.06) (0.11) -- -- REDEMPTION FEES: Redemption fees added to paid in capital -- -- -- -- NET ASSET VALUE, END OF PERIOD $ 8.16 $ 9.41 $ 11.38 $ 13.48 Total return (d) (12.68)%(e) (16.39)%(e) (15.58)% 73.49% RATIOS TO AVERAGE NET ASSETS/ SUPPLEMENTAL DATA: Operating expenses (g) 1.55% 1.55% 1.46% 1.52% Interest expense 0.01% --%(i) -- -- Expenses (g) 1.56% 1.55% 1.46% 1.52% Net investment income (loss) (g) 0.79% 1.00% 0.32% 1.22% Waiver/reimbursement 0.07% --%(i) -- -- Portfolio turnover rate 25% 12% 25% 14% Net assets, end of period (000's) $ 24,180 $ 31,782 $ 46,733 $ 69,503 </Table> (a) The Fund has changed its fiscal year end from December 31 to August 31. (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 initial sales charge or contingent deferred sales charge. (e) Had the Investment Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. (i) Rounds to less than 0.01%. 25 <Page> <Table> <Caption> (UNAUDITED) SIX MONTHS YEAR PERIOD ENDED ENDED ENDED FEBRUARY 28, AUGUST 31, AUGUST 31, CLASS Z SHARES 2005 2004 2003(a) - ----------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 11.36 $ 10.26 $ 8.14 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (b) --(c) 0.09 0.07 Net realized and unrealized gain (loss) on investments and foreign currency and foreign capital gain tax 2.59 1.09 2.05 ------------ ---------- ---------- Total from Investment Operations 2.59 1.18 2.12 LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS: From net investment income (0.09) (0.08) -- REDEMPTION FEES: Redemption fees added to paid in capital --(b)(c) --(b)(c) --(b)(c) NET ASSET VALUE, END OF PERIOD $ 13.86 $ 11.36 $ 10.26 Total return (d) 22.81%(e)(f) 11.53%(e) 26.04%(e)(f) RATIOS TO AVERAGE NET ASSETS/ SUPPLEMENTAL DATA: Operating expenses (g) 1.54%(h) 1.55% 1.55%(h) Interest expense -- --%(i) --%(h)(i) Expenses (g) 1.54%(h) 1.55% 1.55%(h) Net investment income (loss) (g) (0.07)%(h) 0.82% 1.31%(h) Waiver/reimbursement 0.07%(h) 0.13% 0.20%(h) Portfolio turnover rate 11%(f) 32% 18%(f) Net assets, end of period (000's) $ 28,230 $ 26,385 $ 64,803 <Caption> YEAR ENDED DECEMBER 31, ------------------------------------------------------ CLASS Z SHARES 2002 2001 2000 1999 - ------------------------------------------------------------------------------------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 9.38 $ 11.35 $ 13.46 $ 7.75 INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (b) 0.08 0.10 0.04 0.12 Net realized and unrealized gain (loss) on investments and foreign currency and foreign capital gain tax (1.26) (1.96) (2.15) 5.59 ---------- --------- --------- --------- Total from Investment Operations (1.18) (1.86) (2.11) 5.71 LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS: From net investment income (0.06) (0.11) -- -- REDEMPTION FEES: Redemption fees added to paid in capital -- -- -- -- NET ASSET VALUE, END OF PERIOD $ 8.14 $ 9.38 $ 11.35 $ 13.46 Total return (d) (12.61)%(e) (16.43)%(e) (15.68)% 73.68% RATIOS TO AVERAGE NET ASSETS/ SUPPLEMENTAL DATA: Operating expenses (g) 1.55% 1.55% 1.46% 1.52% Interest expense 0.01% --%(i) -- -- Expenses (g) 1.56% 1.55% 1.46% 1.52% Net investment income (loss) (g) 0.79% 1.00% 0.32% 1.22% Waiver/reimbursement 0.07% --%(i) -- -- Portfolio turnover rate 25% 12% 25% 14% Net assets, end of period (000's) $ 77,225 $ 122,255 $ 157,606 $ 214,498 </Table> (a) The Fund has changed its fiscal year end from December 31 to August 31. (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. (e) Had the Investment Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. (i) Rounds to less than 0.01%. 26 <Page> COLUMBIA FUNDS COLUMBIA NEWPORT TIGER FUND <Table> LARGE GROWTH Columbia Growth Stock Columbia Large Cap Growth Columbia Tax-Managed Growth Columbia Tax-Managed Growth II* Columbia Young Investor LARGE VALUE Columbia Disciplined Value Columbia Growth & Income Columbia Large Cap Core Columbia Tax-Managed Value* MIDCAP GROWTH Columbia Acorn Select Columbia Mid Cap Growth Columbia Tax-Managed Aggressive Growth MIDCAP VALUE Columbia Dividend Income Columbia Mid Cap Value* Columbia Strategic Investor SMALL GROWTH Columbia Acorn Columbia Acorn USA Columbia Small Company Equity SMALL VALUE Columbia Small Cap Columbia Small Cap Value BALANCED Columbia Asset Allocation Columbia Balanced Columbia Liberty Fund SPECIALTY Columbia Real Estate Equity Columbia Technology Columbia Utilities TAXABLE FIXED-INCOME Columbia Corporate Bond Columbia Federal Securities Columbia Fixed Income Securities Columbia High Yield Columbia High Yield Opportunities Columbia Income* Columbia Intermediate Bond Columbia Intermediate Government Income* Columbia Quality Plus Bond Columbia Short Term Bond* Columbia Strategic Income TAX EXEMPT Columbia High Yield Municipal Columbia Intermediate Tax-Exempt Bond Columbia Managed Municipals* Columbia National Municipal Bond** Columbia Tax-Exempt Columbia Tax-Exempt Insured </Table> 27 <Page> <Table> SINGLE STATE TAX EXEMPT Columbia California Tax-Exempt Columbia Connecticut Intermediate Municipal Bond Columbia Connecticut Tax-Exempt Columbia Florida Intermediate Municipal Bond* Columbia Massachusetts Intermediate Municipal Bond Columbia Massachusetts Tax-Exempt Columbia New Jersey Intermediate Municipal Bond Columbia New York Intermediate Municipal Bond Columbia New York Tax-Exempt Columbia Oregon Municipal Bond Columbia Pennsylvania Intermediate Municipal Bond* Columbia Rhode Island Intermediate Municipal Bond MONEY MARKET Columbia Money Market Columbia Municipal Money Market INTERNATIONAL/GLOBAL Columbia Acorn International Columbia Acorn International Select Columbia Global Equity Columbia International Stock Columbia Newport Greater China Columbia Newport Tiger* INDEX Columbia Large Company Index* Columbia Small Company Index* Columbia U.S. Treasury Index* </Table> * The fund will be closed to new investments after the close of business on April 29, 2005. The fund's trustees have approved the merger, which is scheduled to occur during September and October, pending shareholder approval ** The fund will be closed to new investments after the close of business on April 29, 2005. The fund's trustees have approved the liquidation, which is scheduled to occur during September, pending shareholder approval Please consider the investment objectives, risks, charges and expenses of a mutual fund carefully before investing. Contact us at 800-345-6611 for a prospectus which contains this and other important information about the fund. Read it carefully before you invest. For complete product information on any Columbia fund, visit our website at www.columbiafunds.com. Columbia Management Group and Columbia Management refer collectively to the various investment advisory subsidiaries of Columbia Management Group, including Columbia Management Advisors, Inc., the registered investment advisor, and Columbia Funds Distributor, Inc. 28 <Page> IMPORTANT INFORMATION ABOUT THIS REPORT Columbia Newport Tiger Fund TRANSFER AGENT Columbia Funds Services, Inc. P.O. Box 8081 Boston MA 02266-8081 800.345.6611 DISTRIBUTOR Columbia Funds Distributor, Inc. One Financial Center Boston MA 02111 INVESTMENT ADVISOR Columbia Management Advisors, Inc. 100 Federal Street Boston MA 02110 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM PricewaterhouseCoopers LLP 125 High Street Boston, MA 02110 The fund mails one shareholder report to each shareholder address. If you would like more than one report, please call shareholder services at 800-345-6611 and additional reports will be sent to you. This report has been prepared for shareholders of Columbia Newport Tiger Fund. This report may also be used as sales literature when preceded or accompanied by the current prospectus which provides details of sales charges, investment objectives and operating policies of the fund and with the most recent copy of the Columbia Funds Performance Update. A description of the fund's proxy voting policies and procedures is available (i) on the fund's website, www.columbiamanagement.com; (ii) on the Securities and Exchange Commission's website at www.sec.gov, and (iii) without charge, upon request, by calling 800-368-0346. Information regarding how the fund voted proxies relating to portfolio securities during the 12-month period ended June 30, 2004 is available from the SEC's website. Information regarding how the fund voted proxies relating to portfolio securities is also available from the fund's website. The fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund's Form N-Q is available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. 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. 29 <Page> [GRAPHIC] Help your fund reduce printing and postage costs! Elect to get your shareholder reports by eletronic 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 NEWPORT TIGER FUND SEMIANNUAL REPORT, FEBRUARY 28, 2005 PRSRT STD U.S. POSTAGE PAID HOLLISTON, MA PERMIT NO. 20 COLUMBIA MANAGEMENT(R) (C) 2005 Columbia Funds Distributor, Inc. One Financial Center, Boston,MA 02111-2621 800.345.6611 www.columbiafunds.com 732-03/730U-0205 (04/05) 05/5132 ITEM 2. CODE OF ETHICS. Not applicable at this time. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable at this time. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable at this time. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. SCHEDULE OF INVESTMENTS The registrant's "Schedule I - Investments in securities of unaffiliated issuers" (as set forth in 17 CFR 210.12-12) is included in Item 1 of this Form N-CSR. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. There have not been any material changes to the procedures by which shareholders may recommend nominees to the registrant's board of directors, since those procedures were last disclosed in response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A or this Item. ITEM 11. CONTROLS AND PROCEDURES. (a) The registrant's principal executive officer and principal financial officers, based on their evaluation of the registrant's disclosure controls and procedures as of a date within 90 days of the filing of this report, have concluded that such controls and procedures are adequately designed to ensure that information required to be disclosed by the registrant in Form N-CSR is accumulated and communicated to the registrant's management, including the principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. (b) There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. (a)(1) Code of ethics required to be disclosed under Item 2 of Form N-CSR: Not applicable at this time. (a)(2) Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT. (a)(3) Not applicable. (b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) attached hereto as Exhibit 99.906CERT. <Page> SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (registrant) Columbia Funds Trust VII --------------------------------------------------------------------- By (Signature and Title) /S/ Christopher L. Wilson --------------------------------------------------------- Christopher L. Wilson, President Date April 27, 2005 ---------------------------------------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title) /S/ Christopher L. Wilson --------------------------------------------------------- Christopher L. Wilson, President Date April 27, 2005 ---------------------------------------------------------------------------- By (Signature and Title) /S/ J. Kevin Connaughton --------------------------------------------------------- J. Kevin Connaughton, Treasurer Date April 27, 2005 ----------------------------------------------------------------------------