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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-4978
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Columbia Funds Trust XI
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(Exact name of registrant as specified in charter)
One Financial Center, Boston, Massachusetts 02111
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(Address of principal executive offices) (Zip code)
Vincent Pietropaolo, Esq.
Columbia Management Group, Inc.
One Financial Center
Boston, MA 02111
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(Name and address of agent for service)
Registrant's telephone number, including area code: 1-617-772-3698
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Date of fiscal year end: 09/30/05
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Date of reporting period: 03/31/05
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. Section 3507.
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ITEM 1. REPORTS TO STOCKHOLDERS.
Columbia Dividend
Income Fund
SEMIANNUAL REPORT
MARCH 31, 2005
[photo of woman reading]
TABLE OF CONTENTS
FUND PROFILE ................................. 1
PERFORMANCE INFORMATION ...................... 2
UNDERSTANDING YOUR EXPENSES .................. 3
ECONOMIC UPDATE .............................. 4
PORTFOLIO MANAGERS' REPORT ................... 5
INVESTMENT PORTFOLIO ......................... 7
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
BOARD CONSIDERATION AND
APPROVAL OF INVESTMENT
ADVISORY AGREEMENT ........................ 28
COLUMBIA FUNDS ............................... 31
IMPORTANT INFORMATION
ABOUT THIS REPORT ......................... 33
PRESIDENT'S MESSAGE
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COLUMBIA DIVIDEND INCOME FUND
[photo of Christopher Wilson]
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 help 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, we recently announced plans to consolidate the transfer agency of all
of our funds and consolidate custodial services, each under a single vendor. We
have also 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 better 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.
Economic and market conditions change frequently. There is no assurance that the
trends described in this report will continue or commence.
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NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GURANTEE
- ----------------
SUMMARY
o FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2005, THE FUND'S CLASS A SHARES
RETURNED 8.92% WITHOUT SALES CHARGE.
o THE FUND'S RETURN WAS LOWER THAN ITS BENCHMARK, THE RUSSELL 1000 VALUE
INDEX, BUT HIGHER THAN THE AVERAGE RETURN OF ITS PEER GROUP, THE LIPPER
EQUITY INCOME FUNDS CATEGORY.
o THE FUND'S STRONGEST GAINS CAME AMONG CONSUMER STAPLES STOCKS AS THE FUND
SHIFTED AWAY FROM CYCLICAL AREAS.
CLASS A SHARES RUSSELL 1000 VALUE INDEX
8.92% 10.48%
OBJECTIVE
Seeks current income and capital appreciation
TOTAL NET ASSETS
$392.5 million
MANAGEMENT STYLE
EQUITY STYLE = VALUE
SIZE = LARGE
FUND PROFILE
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COLUMBIA DIVIDEND INCOME FUND
The information below gives you a snapshot of your fund at the end of the
reporting period. Your fund is actively managed and the composition of its
portfolio will change over time.
TOP 10 HOLDINGS AS OF 03/31/05 (%)
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GENERAL ELECTRIC 4.8
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EXXON MOBIL 4.3
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CITIGROUP 2.6
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ALTRIA GROUP 2.3
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GLAXOSMITHKLINE 2.1
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LINCOLN NATIONAL 1.9
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JP MORGAN CHASE 1.8
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BP 1.8
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US BANCORP 1.8
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VERIZON COMMUNICATIONS 1.8
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SECTORS AS OF 03/31/05 (%)
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FINANCIALS 29.8
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INDUSTRIALS 14.2
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ENERGY 11.3
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CONSUMER STAPLES 10.4
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HEALTH CARE 8.4
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TELECOMMUNICATION SERVICES 6.0
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CONSUMER DISCRETIONARY 5.7
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UTILITIES 5.1
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MATERIALS 4.8
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INFORMATION TECHNOLOGY 4.3
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Portfolio holdings are calculated as a percentage of net assets. Sector
breakdown is calculated as a percentage of total investments excluding
short-term investments.
Management style is determined by Columbia Management and is based on the
investment strategy and process as outlined in the fund's prospectus.
1
PERFORMANCE INFORMATION
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COLUMBIA DIVIDEND INCOME FUND
PERFORMANCE OF A $10,000 INVESTMENT
03/04/98 - 03/31/05 ($)
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SALES CHARGE: WITHOUT WITH
- --------------------------------------
CLASS A 14,995 14,133
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CLASS B 14,315 14,315
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CLASS C 14,303 14,303
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CLASS G 14,304 14,304
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CLASS T 14,972 14,111
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CLASS Z 15,452 N/A
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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.
[LINE CHART DATA]:
VALUE OF A $10,000 INVESTMENT 03/04/98 - 03/31/05
CLASS A SHARES CLASS A SHARES RUSSELL 1000
WITHOUT SALES CHARGE WITH SALES CHARGE VALUE INDEX
03/1998 $ 9,425 $10,000 $10,000
9,642 10,230 10,565
9,585 10,170 10,636
9,199 9,760 10,478
9,081 9,635 10,612
8,883 9,425 10,426
7,412 7,864 8,874
8,063 8,555 9,384
9,071 9,625 10,111
9,269 9,835 10,582
9,672 10,262 10,942
9,710 10,302 11,030
9,492 10,072 10,874
9,885 10,489 11,099
10,698 11,351 12,136
10,774 11,431 12,002
11,021 11,693 12,350
10,604 11,251 11,988
10,141 10,759 11,544
9,516 10,097 11,141
9,365 9,936 11,783
9,317 9,885 11,691
9,676 10,266 11,747
9,308 9,876 11,364
9,146 9,704 10,519
10,450 11,088 11,803
10,548 11,191 11,666
10,753 11,409 11,788
10,335 10,965 11,250
10,216 10,839 11,390
10,801 11,460 12,024
10,821 11,481 12,134
11,341 12,033 12,433
10,994 11,665 11,971
11,828 12,549 12,571
12,859 13,644 12,619
12,467 13,227 12,268
12,117 12,856 11,835
12,891 13,677 12,415
13,060 13,856 12,694
12,785 13,565 12,413
12,752 13,530 12,386
12,067 12,804 11,890
10,923 11,590 11,053
11,249 11,935 10,958
12,225 12,971 11,594
12,775 13,555 11,868
12,379 13,135 11,777
12,403 13,160 11,795
12,947 13,737 12,353
12,726 13,502 11,930
12,552 13,317 11,989
11,468 12,168 11,301
10,444 11,081 10,250
10,573 11,218 10,328
9,198 9,759 9,180
9,956 10,564 9,860
10,590 11,237 10,481
10,140 10,759 10,026
9,848 10,449 9,783
9,311 9,879 9,522
9,313 9,882 9,538
10,005 10,616 10,378
10,791 11,449 11,048
11,027 11,700 11,186
10,944 11,612 11,353
11,098 11,775 11,530
10,943 11,611 11,417
11,345 12,037 12,116
11,428 12,125 12,281
12,279 13,028 13,037
12,422 13,179 13,266
12,695 13,469 13,550
12,614 13,383 13,431
12,375 13,130 13,103
12,399 13,155 13,237
12,679 13,453 13,549
12,571 13,338 13,358
12,775 13,554 13,548
12,979 13,771 13,758
13,075 13,873 13,986
13,652 14,485 14,694
14,068 14,927 15,186
13,852 14,697 14,916
14,346 15,221 15,410
03/2005 14,133 14,995 15,197
The graph and table do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares. The Russell
1000 Value Index is an unmanaged index that measures the performance of those
Russell 1000 Index companies with lower price-to-book ratios and lower
forecasted growth values. Unlike the fund, indices are not investments, do not
incur fees or expenses and are not professionally managed. It is not possible to
invest directly in an index. Securities in the fund may not match those in an
index. Index performance is from March 4, 1998.
AVERAGE ANNUAL TOTAL RETURN AS OF 03/31/05 (%)
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SHARE CLASS A B C G T Z
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INCEPTION 11/25/02 11/25/02 11/25/02 03/04/98 03/04/98 03/04/98
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SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
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6-MONTH (CUMULATIVE) 8.92 2.65 8.50 3.50 8.51 7.51 8.54 3.54 8.89 2.62 9.05
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1-YEAR 12.07 5.67 11.29 6.29 11.30 10.30 11.36 6.36 12.02 5.62 12.35
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5-YEAR 6.22 4.97 5.40 5.07 5.38 5.38 5.38 4.89 6.19 4.94 6.65
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LIFE 5.89 5.01 5.20 5.20 5.19 5.19 5.19 5.19 5.87 4.99 6.34
- -------------------------------------------------------------------------------------------------------------------
The "with sales charge" returns include the maximum initial sales charge of
5.75% for class A and T shares, maximum contingent deferred sales charge of
5.00% for class B and G shares and 1.00% for class C 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.
Class A, class B and class C are newer classes of shares. Their performance
information includes returns of the fund's class T shares (for class A) and
class G shares (for class B and class C) for periods prior to their inception.
The returns shown for class T and G shares include the returns of Retail A
shares (for class T) and Retail B shares (for class G) of the Galaxy fund for
periods prior to November 25, 2002, the date on which class A, B and C shares
were initially offered by the fund and the date the Galaxy fund merged into the
existing fund. The returns have not been restated to reflect any differences in
expenses between the predecessor shares and the newer classes of shares. If
differences in expenses had been reflected, the returns shown for periods prior
to the inception of the newer classes of shares would have been lower. Retail A
shares and Retail B shares of the Galaxy fund were initially offered on March 4,
1998. The returns for class Z shares include returns of Trust shares of the
Galaxy fund for periods prior to November 25, 2002, the date on which class Z
shares were initially offered by the fund. Trust shares were initially offered
by the Galaxy fund on March 4, 1998.
2
UNDERSTANDING YOUR EXPENSES
- --------------------------------------------------------------------------------
COLUMBIA DIVIDEND INCOME FUND
ESTIMATING YOUR ACTUAL EXPENSES
To estimate the expenses that you paid over the period, first you will need your
account balance at the end of the period:
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA FUNDS
SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT
WWW.COLUMBIAFUNDS.COM OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM THEIR BROKERAGE
FIRM, CONTACT YOUR BROKERAGE FIRM TO OBTAIN YOUR ACCOUNT BALANCE
1. DIVIDE YOUR ENDING ACCOUNT BALANCE BY $1,000. FOR EXAMPLE, IF AN ACCOUNT
BALANCE WAS $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6
2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE PERIOD,"
LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER IN THE
COLUMN LABELED "ACTUAL." MULTIPLY THIS NUMBER BY THE RESULT FROM STEP 1.
YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR ACCOUNT DURING
THE PERIOD
As a fund shareholder, you incur two types of costs. There are transaction
costs, which generally include sales charges on purchases and may include
redemption or exchange fees. There are also ongoing costs, which generally
include investment advisory fees, Rule 12b-1 fees, and other fund expenses. The
information on this page is intended to help you understand your ongoing costs
of investing in the fund and to compare these costs with the ongoing costs of
investing in other mutual funds.
ANALYZING YOUR FUND'S EXPENSES BY SHARE CLASS
To illustrate these ongoing costs, we have provided an example and calculated
the expenses paid by investors in each share class during the reporting period.
The information in the following table is based on an initial investment of
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
10/01/04 - 03/31/05
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ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
- --------------------------------------------------------------------------------------------------------------------------
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
- --------------------------------------------------------------------------------------------------------------------------
CLASS A 1,000.00 1,000.00 1,089.20 1,019.70 5.47 5.29 1.05
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CLASS B 1,000.00 1,000.00 1,085.02 1,015.96 9.36 9.05 1.80
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CLASS C 1,000.00 1,000.00 1,085.12 1,015.96 9.36 9.05 1.80
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CLASS G 1,000.00 1,000.00 1,085.37 1,016.21 9.10 8.80 1.75
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CLASS T 1,000.00 1,000.00 1,088.96 1,019.45 5.73 5.54 1.10
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CLASS Z 1,000.00 1,000.00 1,090.55 1,020.94 4.17 4.03 0.80
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Expenses paid during the period are equal to the fund's annualized expense
ratio, multiplied by the average account value over the period, then multiplied
by the number of days in the fund's most recent fiscal half-year and divided by
365.
Had the investment advisor and transfer agent 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 may not help you determine the relative total costs of owning shares of
different funds. If these transactional costs were included, your costs would
have been higher.
COMPARE WITH OTHER FUNDS
Since all mutual fund companies are required to include the same hypothetical
calculations about expenses in shareholder reports, you can use this information
to compare the ongoing cost of investing in the fund with other funds. To do so,
compare the 5% hypothetical example with the 5% hypothetical examples that
appear in the shareholder reports of other funds. As you compare hypothetical
examples of other funds, it is important to note that hypothetical examples are
meant to highlight the continuing cost of investing in a fund and do not reflect
any transactional costs, such as sales charges or redemption or exchange fees.
3
SUMMARY
FOR THE 6-MONTH PERIOD
ENDED MARCH 31, 2005
o BUOYED BY A MARKET RALLY IN THE FIRST HALF OF THE PERIOD, THE S&P 500 INDEX
RETURNED 6.88%. SMALL-CAP STOCKS DID EVEN BETTER, AS MEASURED BY THE
RUSSELL 2000 INDEX.
S&P 500 INDEX RUSSELL 2000 INDEX
6.88% 8.00%
o DESPITE RISING INTEREST RATES, BONDS DELIVERED MODEST GAINS. THE LEHMAN
BROTHERS AGGREGATE BOND INDEX RETURNED 0.47%. HIGH-YIELD BONDS LED THE
FIXED INCOME MARKETS. THE MERRILL LYNCH US HIGH YIELD, CASH PAY INDEX
RETURNED 2.96%.
LEHMAN INDEX MERRILL LYNCH INDEX
0.47% 2.96%
The S&P 500 Index is an unmanaged index that tracks the performance of 500
widely held, large capitalization US stocks.
The Russell 2000 Index is an unmanaged index that tracks the performance of the
2,000 smallest of the 3,000 largest US companies based on market capitalization.
The Lehman Brothers Aggregate Bond Index is a market value-weighted index that
tracks the daily price, coupon, paydowns and total return performance of
fixed-rate, publicly placed, dollar-denominated, non-convertible
investment-grade debt issues with at least $250 million par amount outstanding
and with at least one year to final maturity.
The Merrill Lynch US High Yield, Cash Pay Index is an unmanaged index that
tracks the performance of non-investment grade corporate bonds.
ECONOMIC UPDATE
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COLUMBIA DIVIDEND INCOME FUND
During the six-month period that began October 1, 2004, and ended March 31,
2005, the US economy grew at a healthy pace as household and business spending
expanded. Fourth quarter gross domestic product (GDP) growth was originally
estimated at 3.1%. However, it was revised to 3.8% once it was discovered that
the trade gap appeared to have been overstated. In fact, nearly all sectors that
contribute to US GDP were revised higher. First quarter GDP was reported at 3.1%
- - lower than most economists expected it to be, but still slightly above the
economy's long-term growth rate of 3.0%.
Job growth dominated US economic news as the pace of new job creation picked up
and more than two million jobs were created in 2004. In 2005 both January and
March job additions came in somewhat below expectations, putting an end to the
rise in consumer confidence readings. Yet, consumers overall remained
significantly more optimistic about the prospects for the economy and about
their own employment than they were a year ago.
STOCKS PICK UP, THEN LOSE MOMENTUM
Stock market performance picked up as employment news improved in 2004 and
uncertainty surrounding the US presidential election was resolved. But investors
turned cautious early in 2005 at the possibility of higher interest rates,
higher inflation, sharply higher energy prices and subdued corporate profit
growth and the stock market lost momentum. Nevertheless, the stock market
delivered solid gains for the period. The S&P 500 Index returned 6.88%.
Small-cap stocks did better than large-cap stocks, as measured by the Russell
2000 Index, which gained 8.00% over the same period. Energy and utility stocks
were the period's strongest performers.
BOND RETURNS SLIDE LATE IN THE PERIOD
In the first half of the period, the US bond market was on track to deliver
solid returns. Bond investors responded favorably to short-term interest rate
hikes by the Federal Reserve Board (the Fed) because they indicated that the Fed
was on top of inflation. Yields on intermediate and long-term bonds edged
lower--and prices rose. However, halfway through the period, investors were
unsettled by Fed Chairman Greenspan's comments that the movement of short and
long-term rates in opposite directions represented a conundrum for the markets,
and bonds reversed course in the last six weeks of the period. The Lehman
Brothers Aggregate Bond Index returned 0.47% for the period. Municipal bonds
outperformed taxable bonds, Treasury bonds outperformed corporate bonds and
high-yield bonds led the fixed income markets. The Merrill Lynch US High Yield,
Cash Pay Index returned 2.96%.
HIGHER SHORT-TERM INTEREST RATES
The Fed made good on its announced intentions to raise the federal funds rate, a
key short-term rate, in an effort to balance economic growth against
inflationary pressures. After four one-quarter percentage point increases during
this reporting period, the federal funds rate stood at 2.75%.1 Last year the Fed
indicated that it would continue to raise short-term interest rates at a
measured pace. However, in its March meeting, the Fed hinted at the possibility
of a more aggressive pace in months to come.
1 On May 3, 2005, the federal funds rate was raised to 3.0%.
4
NET ASSET VALUE PER SHARE
AS OF 03/31/05 ($)
- ------------------------------------------
CLASS A 11.67
- ------------------------------------------
CLASS B 11.44
- ------------------------------------------
CLASS C 11.43
- ------------------------------------------
CLASS G 11.43
- ------------------------------------------
CLASS T 11.67
- ------------------------------------------
CLASS Z 11.67
- ------------------------------------------
DISTRIBUTIONS DECLARED PER SHARE
AS OF 10/01/04 - 03/31/05 ($)
- ------------------------------------------
CLASS A 0.09
- ------------------------------------------
CLASS B 0.05
- ------------------------------------------
CLASS C 0.05
- ------------------------------------------
CLASS G 0.05
- ------------------------------------------
CLASS T 0.09
- ------------------------------------------
CLASS Z 0.11
- ------------------------------------------
HOLDINGS DISCUSSED IN THIS REPORT
AS OF 03/31/05 (%)
- ------------------------------------------
ALTRIA GROUP 2.3
- ------------------------------------------
UST 0.4
- ------------------------------------------
REYNOLDS AMERICAN 0.7
- ------------------------------------------
J. C. PENNEY 1.6
- ------------------------------------------
TXU 1.6
- ------------------------------------------
PUBLIC SERVICE
ENTERPRISE GROUP 1.3
- ------------------------------------------
VERIZON 1.8
- ------------------------------------------
SBC COMMUNICATIONS 1.5
- ------------------------------------------
BELLSOUTH 1.5
- ------------------------------------------
JPMORGAN CHASE 1.8
- ------------------------------------------
FREDDIE MAC 1.0
- ------------------------------------------
NATIONAL CITY 1.3
- ------------------------------------------
CHUBB 1.1
- ------------------------------------------
Your fund is actively managed and the composition of its portfolio will change
over time. Information provided is calculated as a percentage of net assets.
PORTFOLIO MANAGERS' REPORT
- --------------------------------------------------------------------------------
COLUMBIA DIVIDEND INCOME FUND
For the six-month period ended March 31, 2005, class A shares of Columbia
Dividend Income Fund returned 8.92% without sales charge. The fund's performance
was lower than its benchmark, the Russell 1000 Value Index, which returned
10.48% for the same period. However, the fund exceeded the 8.34% average return
of its peer group, the Lipper Equity Income Funds Category.1
Sector results were positive overall, with telecommunications the lone
exception. Consumer staple stocks helped the fund generate strong gains. The
fund's performance shortfall relative to its benchmark can be attributed, in
part, to the fund's lighter exposure to energy and materials stocks. Weak
performance from telecommunications and financial holdings also hurt
performance.
A SWING TO LESS CYCLICAL SECTORS
After months of vigorous returns, equity markets closed the period on a down
note. Initially, the US economy seemed to be gathering steam while global demand
for energy and raw materials boosted stocks of the companies that produce them.
We made cuts in the weightings of economically sensitive areas last fall when
prices outran our expectations. Those moves turned out to be premature, as
energy and materials stocks rose further. But commodity prices soon sagged, with
stocks of producers following them down.
By the end of the period we held a significantly overweight position in consumer
staples companies. Shares of Altria Group, parent of Kraft Foods and Philip
Morris; UST; and Reynolds American all rose sharply as litigation burdens began
to lighten and investors reassessed potential. R.J. Reynolds' merger with
British American Tobacco brought substantial economies and we believe that
Altria Group may soon restructure its business.
We remained underweight in consumer discretionary stocks because over-extended
households seem unlikely to sustain torrid spending levels. One stock that we
held in this area, J.C. Penney, staged a turnaround by focusing on its core
department store business and was up for the period. We sold General Motors at a
slight loss just ahead of its steep decline.
A broad electric utility industry turnaround boosted TXU and Public Service
Enterprise Group, helping the fund better the index's results in this sector. We
found attractive values among health care stocks and built up the fund's
weighting to twice that of the index, a strategy that had only slight impact
during the period.
Regional wireline operators Verizon, SBC, and BellSouth all declined. However,
we continue to hold these companies due to high rates of free cash flow and
attractive dividends. All three have strong-performing wireless units. Free cash
flow, or the amount of net cash a company generates, includes earnings,
depreciation and balance sheet changes,
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.
5
- --------------------------------------------------------------------------------
COLUMBIA DIVIDEND INCOME FUND
Sidebar text: We have shifted emphasis from cyclical sectors to areas that may
be less vulnerable to an economic slowdown, such as pharmaceuticals.
minus capital expenditures, is one of the primary criteria in our stock
selection process.
In financials, we sold insurance and investment giant Marsh & McLennan an
insurance broker following fraud allegations. JPMorgan Chase, Freddie Mac and
National City also suffered declines. We limited exposure to the banking sector
as rising interest rates may squeeze margins. Our sale last year of American
International Group and purchase of Chubb aided performance.
CONDITIONS MAY FAVOR DIVIDEND STOCKS IN THE MONTHS AHEAD
Dividend-paying companies have historically tended to be more stable during
periods of economic uncertainty. In addition, many fund holdings have boosted
dividends while payout ratios, the portion of earnings delivered to shareholders
in the form of dividends, remain low. Many also have ample stores of cash on
hand, suggesting possible further dividend enhancements.
We have shifted emphasis from cyclical sectors to areas that may be less
vulnerable to an economic slowdown, such as pharmaceuticals. That swing reflects
our view that the economy is cooling, an environment that may favor the kind of
quality issues in which we invest. We will continue to seek out companies that
have sufficient flows of free cash to reward shareholders with greater
dividends.
[photo of Scott Davis]
Scott Davis has co-managed Columbia Dividend Income Fund since November 2001 and
has been with the advisor or its predecessors or affiliate organizations since
1985.
/s/ Scott Davis
[photo of Richard Dahlberg]
Richard Dahlberg, CFA, has co-managed the fund since October 2003 and has been
with the advisor or its predecessors or affiliate organizations since September
2003.
/s/ Richard Dahlberg
Equity investments are affected by stock market fluctuations that occur in
response to economic and business developments.
Value stocks are securities of companies that may have experienced adverse
business or industry developments or may be subject to special risks that have
caused the stocks to be out of favor. If the advisor's assessment of a company's
prospects is wrong, the price of its stock may not approach the value the
advisor has placed on it.
6
INVESTMENT PORTFOLIO
- --------------------------------------------------------------------------------
MARCH 31, 2005 (UNAUDITED) COLUMBIA DIVIDEND INCOME FUND
COMMON STOCKS - 92.5%
CONSUMER DISCRETIONARY - 4.9%
SHARES VALUE ($)
- ------------------------------------------ -----------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 1.5% Harrah's Entertainment, Inc. 30,000 1,937,400
McDonald's Corp. 128,000 3,985,920
Hotels, Restaurants & Leisure Total 5,923,320
-----------------------------------------------------------------------------
MEDIA - 0.6% McGraw-Hill Companies, Inc. 26,000 2,268,500
Media Total 2,268,500
-----------------------------------------------------------------------------
MULTILINE RETAIL - 1.6% J.C. Penney Co., Inc. 122,000 6,334,240
Multiline Retail Total 6,334,240
-----------------------------------------------------------------------------
SPECIALTY RETAIL - 1.2% Limited Brands 128,000 3,110,400
TJX Companies, Inc. 64,000 1,576,320
Specialty Retail Total 4,686,720
----------
CONSUMER DISCRETIONARY TOTAL 19,212,780
CONSUMER STAPLES - 9.8%
- ------------------------------------------ -----------------------------------------------------------------------------
BEVERAGES - 2.5% Diageo PLC, ADR 116,000 6,600,400
PepsiCo, Inc. 64,000 3,393,920
Beverages Total 9,994,320
-----------------------------------------------------------------------------
FOOD PRODUCTS - 0.8% ConAgra Foods, Inc. 110,000 2,972,200
Food Products Total 2,972,200
-----------------------------------------------------------------------------
HOUSEHOLD PRODUCTS - 2.3% Clorox Co. 62,000 3,905,380
Kimberly-Clark Corp. 80,000 5,258,400
Household Products Total 9,163,780
-----------------------------------------------------------------------------
PERSONAL PRODUCTS - 0.8% Gillette Co. 60,000 3,028,800
Personal Products Total 3,028,800
-----------------------------------------------------------------------------
TOBACCO - 3.4% Altria Group, Inc. 140,000 9,154,600
Reynolds American, Inc. 32,000 2,578,880
UST, Inc. 34,000 1,757,800
Tobacco Total 13,491,280
----------
CONSUMER STAPLES TOTAL 38,650,380
ENERGY - 10.6%
- ------------------------------------------ -----------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES - 0.4% Halliburton Co. 40,000 1,730,000
Energy Equipment & Services Total 1,730,000
-----------------------------------------------------------------------------
OIL & GAS - 10.2% BP PLC, ADR 114,000 7,113,600
ChevronTexaco Corp. 100,000 5,831,000
ConocoPhillips 27,000 2,911,680
Exxon Mobil Corp. 280,000 16,688,000
Kinder Morgan, Inc. 54,000 4,087,800
Royal Dutch Petroleum Co., N.Y. Registered Shares 56,000 3,362,240
Oil & Gas Total 39,994,320
----------
ENERGY TOTAL 41,724,320
See Accompanying Notes to Financial Statements.
7
- --------------------------------------------------------------------------------
MARCH 31, 2005 (UNAUDITED) COLUMBIA DIVIDEND INCOME FUND
COMMON STOCKS - (CONTINUED)
FINANCIALS - 27.4%
SHARES VALUE ($)
- ------------------------------------------ -----------------------------------------------------------------------------
CAPITAL MARKETS - 3.4% Bank of New York Co., Inc. 102,000 2,963,100
Eaton Vance Corp. 60,000 1,406,400
Federated Investors, Inc., Class B 164,000 4,642,840
Morgan Stanley 74,000 4,236,500
Capital Markets Total 13,248,840
-----------------------------------------------------------------------------
COMMERCIAL BANKS - 6.3% National City Corp. 150,000 5,025,000
PNC Financial Services Group, Inc. 32,000 1,647,360
U.S. Bancorp 245,000 7,060,900
Wachovia Corp. 112,000 5,701,920
Wells Fargo & Co. 90,000 5,382,000
Commercial Banks Total 24,817,180
-----------------------------------------------------------------------------
CONSUMER FINANCE - 0.8% MBNA Corp. 124,000 3,044,200
Consumer Finance Total 3,044,200
-----------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 4.5% Citigroup, Inc. 230,000 10,336,200
JPMorgan Chase & Co. 206,000 7,127,600
Diversified Financial Services Total 17,463,800
-----------------------------------------------------------------------------
INSURANCE - 8.1% Allstate Corp. 68,000 3,676,080
Arthur J. Gallagher & Co. 174,000 5,011,200
Chubb Corp. 52,000 4,122,040
Lincoln National Corp. 164,000 7,402,960
St. Paul Travelers Companies, Inc. 50,000 1,836,500
UnumProvident Corp. 200,000 3,404,000
Willis Group Holdings Ltd. 54,000 1,990,980
XL Capital Ltd., Class A 60,000 4,342,200
Insurance Total 31,785,960
-----------------------------------------------------------------------------
REAL ESTATE - 3.3% Archstone-Smith Trust, REIT 50,000 1,705,500
AvalonBay Communities, Inc., REIT 15,000 1,003,350
Equity Office Properties Trust, REIT 140,000 4,218,200
Kimco Realty Corp., REIT 30,000 1,617,000
New Plan Excel Realty Trust 140,000 3,515,400
Vornado Realty Trust, REIT 15,000 1,039,050
Real Estate Total 13,098,500
-----------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE - 1.0% Freddie Mac 62,000 3,918,400
Thrifts & Mortgage Finance Total 3,918,400
----------
FINANCIALS TOTAL 107,376,880
HEALTH CARE - 7.9%
- ------------------------------------------ -----------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES - 0.8% Aetna, Inc. 44,000 3,297,800
Health Care Providers & Services Total 3,297,800
-----------------------------------------------------------------------------
PHARMACEUTICALS - 7.1% Abbott Laboratories 78,000 3,636,360
Bristol-Myers Squibb Co. 104,000 2,647,840
GlaxoSmithKline PLC, ADR 180,000 8,265,600
Merck & Co., Inc. 54,000 1,747,980
Novartis AG, ADR 110,000 5,145,800
Pfizer, Inc. 240,000 6,304,800
Pharmaceuticals Total 27,748,380
----------
HEALTH CARE TOTAL 31,046,180
See Accompanying Notes to Financial Statements.
8
- --------------------------------------------------------------------------------
MARCH 31, 2005 (UNAUDITED) COLUMBIA DIVIDEND INCOME FUND
COMMON STOCKS - (CONTINUED)
INDUSTRIALS - 13.5%
SHARES VALUE ($)
- ------------------------------------------ -----------------------------------------------------------------------------
AEROSPACE & DEFENSE - 3.5% Boeing Co. 54,000 3,156,840
Goodrich Corp. 88,000 3,369,520
Honeywell International, Inc. 114,000 4,241,940
United Technologies Corp. 30,000 3,049,800
Aerospace & Defense Total 13,818,100
-----------------------------------------------------------------------------
BUILDING PRODUCTS - 1.3% Masco Corp. 146,000 5,061,820
Building Products Total 5,061,820
-----------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES - 1.9% Cendant Corp. 90,000 1,848,600
Waste Management, Inc. 188,000 5,423,800
Commercial Services & Supplies Total 7,272,400
-----------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES - 6.1% General Electric Co. 520,000 18,751,200
Textron, Inc. 70,000 5,223,400
Industrial Conglomerates Total 23,974,600
-----------------------------------------------------------------------------
MACHINERY - 0.7% Deere & Co. 40,000 2,685,200
Machinery Total 2,685,200
----------
INDUSTRIALS TOTAL 52,812,120
INFORMATION TECHNOLOGY - 4.1%
- ------------------------------------------ -----------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 1.1% Nokia Oyj, ADR 270,000 4,166,100
Communications Equipment Total 4,166,100
-----------------------------------------------------------------------------
COMPUTERS & PERIPHERALS - 1.2% Diebold, Inc. 86,000 4,717,100
Computers & Peripherals Total 4,717,100
-----------------------------------------------------------------------------
IT SERVICES - 1.2% Automatic Data Processing, Inc. 104,000 4,674,800
IT Services Total 4,674,800
-----------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 0.6% Intel Corp. 110,000 2,555,300
Semiconductors & Semiconductor Equipment Total 2,555,300
----------
INFORMATION TECHNOLOGY TOTAL 16,113,300
MATERIALS - 3.8%
- ------------------------------------------ -----------------------------------------------------------------------------
CHEMICALS - 2.9% Dow Chemical Co. 94,000 4,685,900
E.I. du Pont de Nemours & Co. 92,000 4,714,080
Lyondell Chemical Co. 66,000 1,842,720
Chemicals Total 11,242,700
-----------------------------------------------------------------------------
PAPER & FOREST PRODUCTS - 0.9% Weyerhaeuser Co. 52,000 3,562,000
Paper & Forest Products Total 3,562,000
----------
MATERIALS TOTAL 14,804,700
TELECOMMUNICATION SERVICES - 5.7%
- ------------------------------------------ -----------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 4.9% BellSouth Corp. 230,000 6,046,700
SBC Communications, Inc. 252,000 5,969,880
Verizon Communications, Inc. 196,000 6,958,000
Diversified Telecommunication Services Total 18,974,580
See Accompanying Notes to Financial Statements.
9
- --------------------------------------------------------------------------------
MARCH 31, 2005 (UNAUDITED) COLUMBIA DIVIDEND INCOME FUND
COMMON STOCKS - (CONTINUED)
TELECOMMUNICATION SERVICES - (CONTINUED)
SHARES VALUE ($)
- ------------------------------------------ -----------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 0.8% Vodafone Group PLC, ADR 122,000 3,240,320
Wireless Telecommunication Services Total 3,240,320
-----------
TELECOMMUNICATION SERVICES TOTAL 22,214,900
UTILITIES - 4.8%
- ------------------------------------------ -----------------------------------------------------------------------------
ELECTRIC UTILITIES - 2.5% Consolidated Edison, Inc. 84,000 3,543,120
TXU Corp. 78,000 6,211,140
Electric Utilities Total 9,754,260
-----------------------------------------------------------------------------
MULTI-UTILITIES & UNREGULATED POWER - 2.3% Dominion Resources, Inc. 22,000 1,637,460
Public Service Enterprise Group, Inc. 92,000 5,003,880
Sempra Energy 66,000 2,629,440
Multi-Utilities & Unregulated Power Total 9,270,780
-----------
UTILITIES TOTAL 19,025,040
-----------
Total Common Stocks (cost of $324,847,106) 362,980,600
CONVERTIBLE PREFERRED STOCKS - 2.0%
CONSUMER DISCRETIONARY - 0.5%
- ------------------------------------------ -----------------------------------------------------------------------------
SPECIALTY RETAIL - 0.5% Toys "R" US, Inc., 6.250% 30,000 1,846,500
Specialty Retail Total 1,846,500
-----------
CONSUMER DISCRETIONARY TOTAL 1,846,500
FINANCIALS - 0.8%
- ------------------------------------------ -----------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 0.4% Hartford Financial Services Group, Inc. 7.000% 24,000 1,546,800
Diversified Financial Services Total 1,546,800
-----------------------------------------------------------------------------
INSURANCE - 0.4% Travelers Property Casualty Corp. 4.500% 68,000 1,504,160
Insurance Total 1,504,160
-----------
FINANCIALS TOTAL 3,050,960
MATERIALS - 0.7%
- ------------------------------------------ -----------------------------------------------------------------------------
METALS & MINING - 0.7% Freeport-McMoRan Copper & Gold, Inc., 5.500% (a) 2,425 2,397,719
Freeport-McMoRan Copper & Gold, Inc., 5.500% 575 568,531
Metals & Mining Total 2,966,250
-----------
MATERIALS TOTAL 2,966,250
-----------
Total Convertible Preferred Stocks (cost of $7,684,189) 7,863,710
See Accompanying Notes to Financial Statements.
10
- --------------------------------------------------------------------------------
MARCH 31, 2005 (UNAUDITED) COLUMBIA DIVIDEND INCOME FUND
SHORT-TERM OBLIGATION - 4.2% PAR ($) VALUE ($)
- ------------------------------------------ -----------------------------------------------------------------------------
Repurchase agreement with State Street Bank & Trust
Co., dated 03/31/05, due 04/01/05 at 2.450%, collateralized
by a U.S. Treasury Bond maturing 08/15/23, market value
of $16,946,201 (repurchase proceeds $16,612,130) 16,611,000 16,611,000
-----------
Total Short-Term Obligation (cost of $16,611,000) 16,611,000
TOTAL INVESTMENTS - 98.7%
(COST OF $349,142,295) (B) 387,455,310
OTHER ASSETS & LIABILITIES, NET - 1.3% 5,004,304
NET ASSETS - 100.0% 392,459,614
NOTES TO INVESTMENT PORTFOLIO:
(a) Security exempt from registration pursuant to Rule 144A under the
Securities Act of 1933. This security may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At March 31,
2005, the value of this security represents 0.6% of net assets.
(b) Cost for federal income tax purposes is $349,142,295.
At March 31, 2005, the Fund held investments in the following sectors:
% of
Sector Net Assets
------ ----------
Financials 28.2%
Industrials 13.5
Energy 10.6
Consumer Staples 9.8
Health Care 7.9
Telecommunication Services 5.7
Consumer Discretionary 5.4
Utilities 4.8
Materials 4.5
Information Technology 4.1
Short-Term Obligation 4.2
Other Assets & Liabilities, Net 1.3
-----
100.0%
=====
Acronym Name
------- ----
ADR American Depositary Receipt
REIT Real Estate Investment Trust
See Accompanying Notes to Financial Statements.
11
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
MARCH 31, 2005 (UNAUDITED) COLUMBIA DIVIDEND INCOME FUND
($)
- ------------------------------------------ -----------------------------------------------------------------------------
ASSETS Investments, at cost 349,142,295
-----------
Investments, at value 387,455,310
Cash 440
Receivable for:
Fund shares sold 7,116,250
Interest 1,130
Dividends 1,044,992
Expense reimbursement due from Investment Advisor 48,977
Deferred Trustees' compensation plan 16,169
Other assets 32,033
-----------
Total Assets 395,715,301
-----------------------------------------------------------------------------
LIABILITIES Payable for:
Investments purchased 1,554,113
Fund shares repurchased 328,490
Distributions 995,452
Investment advisory fee 224,619
Administration fee 20,886
Transfer agent fee 63,648
Pricing and bookkeeping fees 3,509
Distribution and service fees 48,801
Deferred Trustees' fees 16,169
-----------
Total Liabilities 3,255,687
NET ASSETS 392,459,614
-----------------------------------------------------------------------------
COMPOSITION OF NET ASSETS Paid-in capital 385,435,857
Undistributed net investment income 361,319
Accumulated net realized loss (31,650,577)
Net unrealized appreciation on investments 38,313,015
------------
NET ASSETS 392,459,614
-----------------------------------------------------------------------------
CLASS A Net assets 21,948,815
Shares outstanding 1,880,313
Net asset value per share 11.67(a)
Maximum offering price per share ($11.67/0.9425) 12.38(b)
-----------------------------------------------------------------------------
CLASS B Net assets 14,156,965
Shares outstanding 1,237,345
Net asset value and offering price per share 11.44(a)
-----------------------------------------------------------------------------
CLASS C Net assets 3,267,496
Shares outstanding 285,814
Net asset value and offering price per share 11.43(a)
-----------------------------------------------------------------------------
CLASS G Net assets 5,100,586
Shares outstanding 446,165
Net asset value and offering price per share 11.43(a)
-----------------------------------------------------------------------------
CLASS T Net assets 102,411,546
Shares outstanding 8,773,943
Net asset value per share 11.67(a)
Maximum offering price per share ($11.67/0.9425) 12.38(b)
-----------------------------------------------------------------------------
CLASS Z Net assets 245,574,206
Shares outstanding 21,040,634
Net asset value, offering and redemption price per share 11.67
(a) Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
(b) On sales of $50,000 or more the offering price is reduced.
See Accompanying Notes to Financial Statements.
12
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED MARCH 31, 2005 (UNAUDITED)
COLUMBIA DIVIDEND INCOME FUND
($)
- ------------------------------------------ -----------------------------------------------------------------------------
INVESTMENT INCOME Dividends 4,476,662
Interest 200,005
----------
Total Investment Income (net of foreign taxes
withheld of $50,489) 4,676,667
-----------------------------------------------------------------------------
EXPENSES Investment advisory fee 1,045,657
Administration fee 99,006
Distribution fee:
Class B 41,587
Class C 9,858
Class G 18,444
Service fee:
Class A 14,200
Class B 13,862
Class C 3,281
Class G 8,513
Shareholder service fee - Class T 154,354
Transfer agent fee 224,144
Pricing and bookkeeping fees 28,488
Trustees' fees 4,922
Custody fee 5,664
Non-recurring costs (See Note 8) 3,756
Other expenses 93,006
----------
Total Expenses 1,768,742
Fees and expenses waived or reimbursed by Investment Advisor (303,584)
Fees waived by Transfer Agent (12,724)
Non-recurring costs assumed by Investment Advisor (See Note 8) (3,756)
Custody earnings credit (142)
----------
Net Expenses 1,448,536
----------
Net Investment Income 3,228,131
-----------------------------------------------------------------------------
NET REALIZED AND UNREALIZED Net realized gain on investments 2,831,660
GAIN (LOSS) ON INVESTMENTS Net change in unrealized appreciation (depreciation) on
investments 15,612,867
----------
Net Gain 18,444,527
----------
Net Increase in Net Assets from Operations 21,672,658
See Accompanying Notes to Financial Statements.
13
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
MARCH 31, 2005 (UNAUDITED) COLUMBIA DIVIDEND INCOME FUND
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED
MARCH 31, SEPTEMBER 30,
INCREASE (DECREASE) IN NET ASSETS 2005 ($) 2004 ($)
- ------------------------------------------ -----------------------------------------------------------------------------
OPERATIONS Net investment income 3,228,131 3,438,007
Net realized gain (loss) on investments 2,831,660 (2,366,483)
Net change in unrealized appreciation
(depreciation) on investments 15,612,867 32,219,303
-----------------------------
Net Increase from Operations 21,672,658 33,290,827
-----------------------------------------------------------------------------
DISTRIBUTIONS DECLARED TO SHAREHOLDERS From net investment income:
Class A (124,403) (74,299)
Class B (53,269) (40,442)
Class C (12,897) (9,211)
Class G (25,623) (73,058)
Class T (798,346) (1,626,505)
Class Z (1,842,489) (1,531,132)
-----------------------------
Total Distributions Declared
to Shareholders (2,857,027) (3,354,647)
-----------------------------------------------------------------------------
SHARE TRANSACTIONS Class A:
Subscriptions 14,641,918 9,356,105
Distributions reinvested 96,405 66,013
Redemptions (661,042) (2,933,744)
-----------------------------
Net Increase 14,077,281 6,488,374
Class B:
Subscriptions 5,529,695 8,241,367
Distributions reinvested 43,961 34,605
-----------------------------
Redemptions (1,001,562) (1,056,587)
Net Increase 4,572,094 7,219,385
Class C:
Subscriptions 1,226,739 2,110,907
Distributions reinvested 8,410 6,757
-----------------------------
Redemptions (177,866) (333,548)
Net Increase 1,057,283 1,784,116
Class G:
Subscriptions 89,260 107,766
Distributions reinvested 24,557 71,095
-----------------------------
Redemptions (1,471,385) (5,168,967)
Net Decrease (1,357,568) (4,990,106)
Class T:
Subscriptions 1,670,987 5,028,502
Distributions reinvested 770,855 1,571,011
-----------------------------
Redemptions (8,829,770) (17,969,184)
Net Decrease (6,387,928) (11,369,671)
Class Z:
Subscriptions 155,752,157 32,779,209
Distributions reinvested 274,290 346,486
-----------------------------
Redemptions (9,564,122) (28,389,060)
Net Increase 146,462,325 4,736,635
Net Increase from Share Transactions 158,423,487 3,868,733
Total Increase in Net Assets 177,239,118 33,804,913
-----------------------------------------------------------------------------
See Accompanying Notes to Financial Statements.
14
- --------------------------------------------------------------------------------
MARCH 31, 2005 (UNAUDITED) COLUMBIA DIVIDEND INCOME FUND
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED
MARCH 31, SEPTEMBER 30,
2005 ($) 2004 ($)
- ------------------------------------------ -----------------------------------------------------------------------------
NET ASSETS Beginning of period 215,220,496 181,415,583
End of period 392,459,614 215,220,496
Undistributed (overdistributed) net
investment income, at end of period 361,319 (9,785)
-----------------------------------------------------------------------------
CHANGES IN SHARES Class A:
Subscriptions 1,251,361 891,438
Issued for distributions reinvested 8,311 6,319
Redemptions (57,126) (280,897)
-----------------------------
Net Increase 1,202,546 616,860
Class B:
Subscriptions 490,820 807,527
Issued for distributions reinvested 3,870 3,385
Redemptions (89,398) (103,938)
-----------------------------
Net Increase 405,292 706,974
Class C:
Subscriptions 109,377 207,466
Issued for distributions reinvested 741 660
Redemptions (15,940) (33,197)
-----------------------------
Net Increase 94,178 174,929
Class G:
Subscriptions 8,004 10,547
Issued for distributions reinvested 2,167 7,037
Redemptions (130,810) (514,799)
-----------------------------
Net Decrease (120,639) (497,215)
Class T:
Subscriptions 144,871 487,272
Issued for distributions reinvested 66,606 151,877
Redemptions (773,260) (1,739,989)
-----------------------------
Net Decrease (561,783) (1,100,840)
Class Z:
Subscriptions 13,483,856 3,178,656
Issued for distributions reinvested 23,680 33,472
Redemptions (827,878) (2,764,193)
-----------------------------
Net Increase 12,679,658 447,935
See Accompanying Notes to Financial Statements.
15
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
MARCH 31, 2005 (UNAUDITED) COLUMBIA DIVIDEND INCOME FUND
NOTE 1. ORGANIZATION
Columbia Dividend Income Fund (the "Fund"), a series of Columbia Funds Trust XI
(the "Trust"), is a diversified portfolio. The Trust is a Massachusetts business
trust registered under the Investment Company Act of 1940, as amended, as an
open-end management investment company.
INVESTMENT GOALS
The Fund seeks current income and capital appreciation.
FUND SHARES
The Fund may issue an unlimited number of shares and offers six classes of
shares: Class A, Class B, Class C, Class G, Class T and Class Z. Each share
class has its own sales charge and expense structure.
Class A and Class T shares are subject to a front-end sales charge based on the
amount of initial investment. Class A and Class T shares purchased without an
initial sales charge in accounts aggregating $1 million to $25 million at the
time of purchase are subject to a 1.00% contingent deferred sales charge
("CDSC") on shares sold within eighteen months of the time of purchase. Class B
and Class G shares are subject to a maximum CDSC of 5.00% based upon the holding
period after purchase. Class B shares will convert to Class A shares in a
certain number of years after purchase, depending on the program under which
shares were purchased. Class G shares will convert to Class T shares in eight
years after purchase. Class C shares are subject to a 1.00% CDSC on shares sold
within one year after purchase. Class Z shares are offered continuously at net
asset value. There are certain restrictions on the purchase of Class Z shares,
as described in the Fund's prospectus.
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.
Investments for which market quotations are not readily available, or quotations
which management believes are not appropriate, are valued at fair value as
determined in good faith under consistently applied procedures established by
and under the general supervision of the Board of Trustees.
SECURITY TRANSACTIONS
Security transactions are accounted for on the trade date. Cost is determined
and gains (losses) are based upon the specific identification method for both
financial statement and federal income tax purposes.
REPURCHASE AGREEMENTS
The Fund may engage in repurchase agreement transactions with institutions that
the Fund's investment advisor has determined are creditworthy. The Fund, through
its custodian, receives delivery of underlying securities collateralizing a
repurchase agreement. Collateral is at least equal, at all times, to the value
of the repurchase obligation including 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. Awards from class action litigation are
recorded as a reduction of cost if the Fund still owns
16
- --------------------------------------------------------------------------------
MARCH 31, 2005 (UNAUDITED) COLUMBIA DIVIDEND INCOME FUND
the applicable securities on the payment date. If the Fund no longer owns the
applicable securities, the proceeds are recorded as realized gains.
The Fund estimates components of distributions from real estate investment
trusts (REITs). Distributions received in excess of income are recorded as a
reduction of the cost of the related investments. If the Fund no longer owns the
applicable securities, any distributions received in excess of income are
recorded as realized gains.
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.
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 September 30, 2004
was as follows:
SEPTEMBER 30,
2004
- --------------------------------------------------------------------------------
DISTRIBUTIONS PAID FROM:
ORDINARY INCOME* $3,354,647
LONG-TERM CAPITAL GAINS --
* For tax purposes short-term capital gains distributions, if any, are
considered ordinary income distributions.
Unrealized appreciation and depreciation at March 31, 2005, based on cost of
investments for federal income tax purposes was:
UNREALIZED APPRECIATION $ 51,579,598
UNREALIZED DEPRECIATION (13,266,583)
- --------------------------------------------------------------------------------
NET UNREALIZED APPRECIATION $ 38,313,015
The following capital loss carryforwards, determined as of September 30, 2004,
may be available to reduce taxable income arising from future net realized gains
on investments, if any, to the extent permitted by the Internal Revenue Code:
YEAR OF CAPITAL LOSS
EXPIRATION CARRYFORWARD
- --------------------------------------------------------------------------------
2009 $19,781,995
2010 2,470,255
2011 9,095,627
- --------------------------------------------------------------------------------
$31,347,877
Of the capital loss carryforwards attributable to the Fund, $20,102,723
($19,781,995 expiring 09/30/09 and $320,728 expiring 09/30/10) remain from the
Fund's merger with Galaxy Equity Income Fund. Utilization of these losses could
be subject to limitations imposed by the Internal Revenue Code.
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:
AVERAGE DAILY NET ASSETS ANNUAL FEE RATE
- --------------------------------------------------------------------------------
FIRST $500 MILLION 0.70%
- --------------------------------------------------------------------------------
$500 MILLION TO $1 BILLION 0.65%
- --------------------------------------------------------------------------------
$1 BILLION TO $1.5 BILLION 0.60%
- --------------------------------------------------------------------------------
$1.5 BILLION TO $3 BILLION 0.55%
- --------------------------------------------------------------------------------
$3 BILLION TO $6 BILLION 0.53%
- --------------------------------------------------------------------------------
OVER $6 BILLION 0.51%
- --------------------------------------------------------------------------------
17
- --------------------------------------------------------------------------------
MARCH 31, 2005 (UNAUDITED) COLUMBIA DIVIDEND INCOME FUND
Prior to November 1, 2004, Columbia received a monthly investment advisory fee
based on the Fund's average daily net assets at the following annual rates:
AVERAGE DAILY NET ASSETS ANNUAL FEE RATE
- --------------------------------------------------------------------------------
FIRST $500 MILLION 0.75%
- --------------------------------------------------------------------------------
$500 MILLION TO $1 BILLION 0.70%
- --------------------------------------------------------------------------------
$1 BILLION TO $1.5 BILLION 0.65%
- --------------------------------------------------------------------------------
$1.5 BILLION TO $2 BILLION 0.60%
- --------------------------------------------------------------------------------
OVER $2 BILLION 0.55%
- --------------------------------------------------------------------------------
For the six months ended March 31, 2005, the Fund's annualized effective
investment advisory fee rate was 0.70%.
ADMINISTRATION FEE
Columbia provides administrative and other services to the Fund for a monthly
administration fee at the annual rate of 0.067% of the Fund's average daily net
assets.
PRICING AND BOOKKEEPING FEES
Columbia is responsible for providing pricing and bookkeeping services to the
Fund under a pricing and bookkeeping agreement. Under a separate agreement (the
"Outsourcing Agreement"), Columbia has delegated those functions to State Street
Corporation ("State Street"). 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 an
annual fee based on the average daily net assets of the Fund at the following
annual rates:
AVERAGE DAILY NET ASSETS ANNUAL FEE RATE
- --------------------------------------------------------------------------------
UNDER $50 MILLION $ 25,000
- --------------------------------------------------------------------------------
OVER $50 MILLION BUT LESS THAN $200 MILLION $ 35,000
- --------------------------------------------------------------------------------
OVER $200 MILLION BUT LESS THAN $500 MILLION $ 50,000
- --------------------------------------------------------------------------------
OVER $500 MILLION BUT LESS THAN $1 BILLION $ 85,000
- --------------------------------------------------------------------------------
OVER $1 BILLION $125,000
An additional flat rate fee of $10,000 is charged to the Fund due to its
multiple class structure. The Fund also pays additional fees for pricing
services based on the number of securities held by the Fund.
For the six months ended March 31, 2005, the annualized effective pricing and
bookkeeping fee rate for the Fund, inclusive of out-of-pocket expenses, was
0.019%.
TRANSFER AGENT FEE
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.
The Transfer Agent has voluntarily agreed to waive a portion of its transfer
agent fee for the Fund. This arrangement may be revised or discontinued by the
Transfer Agent at any time. For the six months ended March 31, 2005, the
Transfer Agent waived fees of $12,724 for the Fund.
For the six months ended March 31, 2005, the Fund's annualized effective
transfer agent fee rate, after out-of-pocket expenses and net of expense waiver,
was 0.14%.
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 March 31,
2005, the Distributor has retained net underwriting discounts of $17,470 and
$1,227 on sales of the Fund's Class A and Class T shares and net CDSC fees of
$0, $11,492, $946, $4,805 and $0 on Class A, Class B, Class C, Class G and Class
T share redemptions, respectively.
The Fund has adopted a 12b-1 plan (the "Plan"), which allows the payment of a
monthly distribution and service fee to the Distributor at an annual fee rate as
follows:
DISTRIBUTION FEE
- --------------------------------------------------------------------------------
CLASS A CLASS B CLASS C CLASS G
0.10% 0.75% 0.75% 0.65%
SERVICE FEE
- --------------------------------------------------------------------------------
CLASS A CLASS B CLASS C CLASS G
0.25% 0.25% 0.25% 0.50%
The Fund does not intend to pay total distribution and service fees in excess of
0.25% and 0.95% annually for Class A and Class G shares of the Fund,
respectively. Of the 0.50% service fee for Class G shares, 0.25% relates to
shareholder liaison fees and 0.25% relates to administration support fees.
18
- --------------------------------------------------------------------------------
MARCH 31, 2005 (UNAUDITED) COLUMBIA DIVIDEND INCOME FUND
The CDSC and the fees received from the Plan are used principally as repayment
to the Distributor for amounts paid by the Distributor to dealers who sold such
shares.
SHAREHOLDER SERVICES FEES
The Fund has adopted a shareholder services plan that permits it to pay for
certain services provided to Class T and Class Z shareholders by their financial
advisor. Currently, the service plan has not been implemented with respect to
the Fund's Class Z shares. The annual service fee may equal up to 0.50% for
Class T shares. The Fund does not intend to pay more than 0.30% annually for
Class T shareholder services fees.
EXPENSE LIMITS AND FEE REIMBURSEMENTS
Columbia has contractually agreed to waive fees and reimburse the Fund through
December 31, 2006 for certain expenses to the extent that total expenses
(exclusive of distribution and service fees, brokerage commissions, interest,
taxes and extraordinary expenses, if any) exceed 0.80% annually of the Fund's
average daily net assets.
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. The Board
of Trustees has 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 for the Office of the Chief
Compliance Officer 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 March 31, 2005, the Fund paid $902 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 March 31, 2005, the cost of purchases and proceeds from
sales of securities, excluding short-term obligations, were $162,084,656 and
$16,760,042, respectively.
NOTE 6. 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 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 March 31, 2005, the Fund did not borrow
under this arrangement.
NOTE 7. SHARES OF BENEFICIAL INTEREST
As of March 31, 2005, Class T shares of the Fund had shareholders whose shares
were beneficially owned by participant accounts over which Bank of America
and/or its affiliates had either sole or joint investment discretion.
Subscription and redemption activity of these accounts may have a significant
effect on the operations of the Fund. The number of such accounts and the
percentage of shares of beneficial interest outstanding held therein are as
follows:
NUMBER OF ACCOUNTS % OF SHARES OUTSTANDING HELD
- --------------------------------------------------------------------------------
4 52.8%
- --------------------------------------------------------------------------------
19
- --------------------------------------------------------------------------------
MARCH 31, 2005 (UNAUDITED) COLUMBIA DIVIDEND INCOME FUND
NOTE 8. DISCLOSURE OF SIGNIFICANT RISKS AND CONTINGENCIES
LEGAL PROCEEDINGS
On February 9, 2005, Columbia and the Distributor (collectively, the "Columbia
Group") entered into an Assurance of Discontinuance with the New York Attorney
General ("NYAG") (the "NYAG Settlement") and consented to the entry of a
cease-and-desist order by the Securities and Exchange Commission ("SEC") (the
"SEC Order"). The SEC Order and the NYAG Settlement are referred to collectively
as the "Settlements". The Settlements contain substantially the same terms and
conditions as outlined in the agreements in principle which 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 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 funds
management fees collectively by $32 million per year for five years, for a
projected total of $160 million in management fee reductions.
Pursuant to the procedures set forth in the SEC order, the $140 million in
settlement amounts described above will be distributed in accordance with a
distribution plan to be developed by an independent distribution consultant, who
is acceptable to the SEC staff and the Columbia Funds' independent trustees. The
distribution plan must be based on a methodology developed in consultation with
the Columbia Group and the Fund's independent trustees and not unacceptable to
the staff of the SEC. At this time, the distribution plan is still under
development. As such, any gain to the fund or its shareholders can not currently
be determined.
As a result of these matters or any adverse publicity or other developments
resulting from them, there
may be increased redemptions or reduced sales of fund shares, which could
increase transaction costs or operating expenses, or have other adverse
consequences for the funds.
A copy of the SEC Order is available on the SEC website at http://www.sec.gov. A
copy of the NYAG Settlement is available as part of the Bank of America
Corporation Form 8-K filing on February 10, 2005.
On January 11, 2005, a putative class action lawsuit was filed in federal
district court in Massachusetts against, among others, the Trustees of the Fund
and Columbia. The lawsuit alleges that defendants violated common law duties to
fund shareholders as well as sections of the Investment Company Act of 1940, by
failing to ensure that the Fund and other affiliated funds participated in
securities class action settlements for which the funds were eligible.
Specifically, plaintiffs allege that defendants failed to submit proof of claims
in connection with settlements of securities class action lawsuits filed against
companies in which the funds held positions.
In 2004, certain Columbia funds, advisers and affiliated entities were named as
defendants in certain purported shareholder class and derivative actions making
claims, including claims under the Investment Company and the Investment
Advisers Acts of 1940 and state law. The suits allege, inter alia, that the fees
and expenses paid by the funds are excessive and that the advisers and their
affiliates inappropriately used fund assets to distribute the funds and for
other improper purpose. On March 2, 2005, the actions were consolidated in the
Massachusetts federal court as In re Columbia Entities Litigation. The
plaintiffs are expected to file a consolidated amended complaint in June 2005.
The Fund and the other defendants to these actions, including Columbia and
various of its affiliates, certain other mutual funds advised by Columbia and
its affiliates, and various directors of such funds, have denied these
allegations and are contesting the plaintiffs' claims. These proceedings are
ongoing, however, based on currently available information, Columbia believes
that these lawsuits are without merit, that the likelihood they will have a
material
20
- --------------------------------------------------------------------------------
MARCH 31, 2005 (UNAUDITED) COLUMBIA DIVIDEND INCOME FUND
adverse impact on any fund is remote, and that the lawsuits are not likely to
materially affect its ability to provide investment management services to its
clients, including the Fund.
In connection with events described in detail above, various parties have filed
suit against certain funds, their Boards, FleetBoston Financial Corporation and
its affiliated entities and/or Bank of America Corporation and its affiliated
entities. More than 300 cases including those filed against entities
unaffiliated with the funds, their Boards, FleetBoston Financial Corporation and
its affiliated entities and/or Bank of America Corporation and its affiliated
entities have been transferred to the Federal District Court in Maryland and
consolidated in a multi-district proceeding (the "MDL"). On March 21, 2005
purported class action plaintiffs filed suit in Massachusetts state court
alleging that the conduct, including market timing, entitles Class B
shareholders in certain Columbia funds to an exemption from contingent deferred
sales charges upon early redemption (the "CDSC Lawsuit"). The CDSC Lawsuit has
been removed to federal court in Massachusetts and the federal Judicial Panel
has conditionally ordered its transfer to the MDL. The MDL is ongoing.
Accordingly, an estimate of the financial impact of this litigation on any Fund,
if any, can not currently be made.
For the six months ended March 31, 2005, Columbia has assumed $3,756 of legal,
consulting services and Trustees' fees incurred by the Fund in connection with
these matters.
21
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
COLUMBIA DIVIDEND INCOME FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED PERIOD ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS A SHARES 2005 2004 (a) 2003 (b)(c)
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.80 $ 9.26 $ 9.01
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (d) 0.12 0.18 0.11
Net realized and unrealized gain on investments 0.84 1.53 0.25
--------- --------- --------
Total from Investment Operations 0.96 1.71 0.36
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.09) (0.17) (0.11)
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 11.67 $ 10.80 $ 9.26
Total return (e)(f) 8.92%(g) 18.60% 4.02%(g)
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (h) 1.05%(i) 1.36% 1.42%(i)
Net investment income (h) 2.12%(i) 1.71% 1.38%(i)
Waiver/reimbursement 0.21%(i) 0.06% --%(i)(j)
Portfolio turnover rate 6%(g) 44% 33%(g)
Net assets, end of period (000's) $ 21,949 $ 7,319 $ 564
- ------------------------------------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Strategic Equity Fund was renamed Columbia
Strategic Equity Fund. On October 27, 2003, the Columbia Strategic Equity
Fund was renamed Columbia Dividend Income Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) Class A shares were initially offered on November 25, 2002. Per share data
and total return reflect activity from that date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(f) Had the Investment Advisor and/or any of its affiliates not waived a
portion of expenses, total return would have been reduced.
(g) Not annualized.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
(j) Rounds to less than 0.01%.
22
- --------------------------------------------------------------------------------
COLUMBIA DIVIDEND INCOME FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED PERIOD ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS B SHARES 2005 2004 (a) 2003 (b)(c)
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.59 $ 9.08 $ 8.82
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (d) 0.08 0.10 0.05
Net realized and unrealized gain on investments 0.82 1.50 0.26
--------- --------- --------
Total from Investment Operations 0.90 1.60 0.31
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.05) (0.09) (0.05)
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 11.44 $ 10.59 $ 9.08
Total return (e)(f) 8.50%(g) 17.69% 3.51%(g)
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (h) 1.80%(i) 2.11% 2.34%(i)
Net investment income (h) 1.35%(i) 0.94% 0.47%(i)
Waiver/reimbursement 0.21%(i) 0.06% --%(i)(j)
Portfolio turnover rate 6%(g) 44% 33%(g)
Net assets, end of period (000's) $ 14,157 $ 8,808 $ 1,136
- ------------------------------------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Strategic Equity Fund was renamed Columbia
Strategic Equity Fund. On October 27, 2003, the Columbia Strategic Equity
Fund was renamed Columbia Dividend Income Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) Class B shares were initially offered on November 25, 2002. Per share data
and total return reflect activity from that date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(f) Had the Investment Advisor and/or any of its affiliates not waived a
portion of expenses, total return would have been reduced.
(g) Not annualized.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
(j) Rounds to less than 0.01%.
23
- --------------------------------------------------------------------------------
COLUMBIA DIVIDEND INCOME FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED PERIOD ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS C SHARES 2005 2004 (a) 2003 (b)(c)
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $10.58 $ 9.07 $ 8.82
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (d) 0.08 0.10 0.07
Net realized and unrealized gain on investments 0.82 1.50 0.23
--------- --------- --------
Total from Investment Operations 0.90 1.60 0.30
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.05) (0.09) (0.05)
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.43 $10.58 $ 9.07
Total return (e)(f) 8.51%(g) 17.70% 3.41%(g)
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (h) 1.80%(i) 2.11% 2.18%(i)
Net investment income (h) 1.35%(i) 0.94% 0.95%(i)
Waiver/reimbursement 0.21%(i) 0.06% --%(i)(j)
Portfolio turnover rate 6%(g) 44% 33%(g)
Net assets, end of period (000's) $ 3,267 $ 2,027 $ 152
- ------------------------------------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Strategic Equity Fund was renamed Columbia
Strategic Equity Fund. On October 27, 2003, the Columbia Strategic Equity
Fund was renamed Columbia Dividend Income Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) Class C shares were initially offered on November 25, 2002. Per share data
and total return reflect activity from that date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(f) Had the Investment Advisor and/or any of its affiliates not waived a
portion of expenses, total return would have been reduced.
(g) Not annualized.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
(j) Rounds to less than 0.01%.
24
- --------------------------------------------------------------------------------
COLUMBIA DIVIDEND INCOME FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED YEAR ENDED OCTOBER 31,
MARCH 31, SEPTEMBER 30, SEPTEMBER 30, -----------------------------------------------------
CLASS G SHARES 2005 2004 (a) 2003 (b)(c) 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.58 $ 9.07 $ 8.36 $ 9.87 $ 10.37 $ 9.84 $ 9.61
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.08(d) 0.10(d) 0.05(d) (0.07)(d) (0.06)(d) (0.04) (0.02)(d)
Net realized and unrealized
gain (loss) on investments 0.82 1.50 0.71 (1.05)(e) (0.11) 1.75 0.26
------------ ------------ ------------ ------------ ------------ ------------ -----------
Total from Investment
Operations 0.90 1.60 0.76 (1.12) (0.17) 1.71 0.24
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED
TO SHAREHOLDERS:
From net investment income (0.05) (0.09) (0.05) -- -- --(f) --
From net realized gains -- -- -- (0.39) (0.33) (1.18) (0.01)
------------ ------------ ------------ ------------ ------------ ------------ -----------
Total Distributions Declared
to Shareholders (0.05) (0.09) (0.05) (0.39) (0.33) (1.18) (0.01)
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 11.43 $ 10.58 $ 9.07 $ 8.36 $ 9.87 $ 10.37 $ 9.84
Total return (g)(h) 8.54%(i) 17.71% 9.08%(i) (12.16)% (1.71)% 20.33% 2.50%
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/
SUPPLEMENTAL DATA:
Expenses (j) 1.75%(k) 2.14% 2.21%(k) 2.17% 2.02% 1.95% 1.84%
Net investment income (loss) (j) 1.39%(k) 0.97% 0.71%(k) (0.72)% (0.53)% (0.35)% (0.24)%
Waiver/reimbursement 0.21%(k) 0.03% --%(k)(l) 0.25% 0.24% 0.40% 0.56%
Portfolio turnover rate 6%(i) 44% 33%(i) 65%(m) 81% 81% 79%
Net assets, end of period (000's) $ 5,101 $ 5,995 $ 9,650 $ 2,093 $ 2,286 $ 1,555 $1,348
- ------------------------------------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Strategic Equity Fund was renamed Columbia
Strategic Equity Fund. On October 27, 2003, the Columbia Strategic Equity
Fund was renamed Columbia Dividend Income Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 25, 2002, Galaxy Strategic Equity Fund, Retail B shares were
redesignated Liberty Strategic Equity Fund, Class G shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) The amount shown for a share outstanding does not correspond with the
aggregate net gain (loss) on investments for the period due to the timing
of repurchases of Fund shares in relation to fluctuating market values of
the investments of the Fund.
(f) Rounds to less than $0.01 per share.
(g) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge. (h)Had the Investment Advisor and/or
any of its affiliates not waived a portion of expenses, total return would
have been reduced.
(i) Not annualized.
(j) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(k) Annualized.
(l) Rounds to less than 0.01%.
(m) Portfolio turnover rate excludes securities delivered from processing a
redemption-in-kind.
25
- --------------------------------------------------------------------------------
COLUMBIA DIVIDEND INCOME FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED YEAR ENDED OCTOBER 31,
MARCH 31, SEPTEMBER 30, SEPTEMBER 30, -----------------------------------------------------
CLASS T SHARES 2005 2004 (a) 2003 (b)(c) 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $ 10.80 $ 9.26 $ 8.54 $ 10.02 $ 10.46 $ 9.89 $ 9.62
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.12(d) 0.17(d) 0.11(d) 0.01(d) 0.03(d) 0.04 0.04(d)
Net realized and unrealized
gain (loss) on investments 0.84 1.54 0.73 (1.08)(e) (0.11) 1.75 0.27
------------ ------------ ------------ ------------ ------------ ------------ -----------
Total from Investment
Operations 0.96 1.71 0.84 (1.07) (0.08) 1.79 0.31
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED
TO SHAREHOLDERS:
From net investment income (0.09) (0.17) (0.12) (0.02) (0.03) (0.04) (0.03)
From net realized gains -- -- -- (0.39) (0.33) (1.18) (0.01)
------------ ------------ ------------ ------------ ------------ ------------ -----------
Total Distributions Declared
to Shareholders (0.09) (0.17) (0.12) (0.41) (0.36) (1.22) (0.04)
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 11.67 $ 10.80 $ 9.26 $ 8.54 $ 10.02 $10.46 $ 9.89
Total return (f)(g) 8.89%(h) 18.50% 9.86%(h) (11.50)% (0.83)% 21.09% 3.25%
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/
SUPPLEMENTAL DATA:
Expenses (i) 1.10%(j) 1.45% 1.49%(j) 1.40% 1.24% 1.20% 1.19%
Net investment income (i) 2.04%(j) 1.64% 1.42%(j) 0.05% 0.25% 0.40% 0.41%
Waiver/reimbursement 0.21%(j) 0.04% 0.01%(j) 0.29% 0.26% 0.40% 0.44%
Portfolio turnover rate 6%(h) 44% 33%(h) 65%(k) 81% 81% 79%
Net assets, end
of period (000's) $102,412 $100,803 $96,638 $ 6,578 $ 8,400 $8,505 $ 8,229
- ------------------------------------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Strategic Equity Fund was renamed Columbia
Strategic Equity Fund. On October 27, 2003, the Columbia Strategic Equity
Fund was renamed Columbia Dividend Income Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 25, 2002, Galaxy Strategic Equity Fund, Retail A shares were
redesignated Liberty Strategic Equity Fund, Class T shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) The amount shown for a share outstanding does not correspond with the
aggregate net gain (loss) on investments for the period due to the timing
of repurchases of Fund shares in relation to fluctuating market values of
the investments of the Fund.
(f) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(g) Had the Investment Advisor and/or any of its affiliates not waived a
portion of expenses, total return would have been reduced.
(h) Not annualized.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
(k) Portfolio turnover rate excludes securities delivered from processing a
redemption-in-kind.
26
- --------------------------------------------------------------------------------
COLUMBIA DIVIDEND INCOME FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED YEAR ENDED OCTOBER 31,
MARCH 31, SEPTEMBER 30, SEPTEMBER 30, -----------------------------------------------------
CLASS Z SHARES 2005 2004 (a) 2003 (b)(c) 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $ 10.80 $ 9.26 $ 8.56 $ 10.03 $ 10.48 $ 9.90 $ 9.63
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.14(d) 0.21(d) 0.15(d) 0.06(d) 0.08(d) 0.08 0.09(d)
Net realized and unrealized
gain (loss) on investments 0.84 1.53 0.72 (1.07)(e) (0.12) 1.76 0.27
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total from Investment
Operations 0.98 1.74 0.87 (1.01) (0.04) 1.84 0.36
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED
TO SHAREHOLDERS:
From net investment income (0.11) (0.20) (0.17) (0.07) (0.08) (0.08) (0.08)
From net realized gains -- -- -- (0.39) (0.33) (1.18) (0.01)
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Distributions Declared
to Shareholders (0.11) (0.20) (0.17) (0.46) (0.41) (1.26) (0.09)
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 11.67 $ 10.80 $ 9.26 $ 8.56 $ 10.03 $ 10.48 $ 9.90
Total return (f)(g) 9.05%(h) 18.93% 10.22%(h) (11.07)% (0.43)% 21.69% 3.64%
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/
SUPPLEMENTAL DATA:
Expenses (i) 0.80%(j) 1.10% 1.02%(j) 0.82% 0.75% 0.78% 0.80%
Net investment income (i) 2.36%(j) 1.98% 1.89%(j) 0.63% 0.74% 0.83% 0.80%
Waiver/reimbursement 0.21%(j) 0.05% 0.02%(j) 0.24% 0.21% 0.20% 0.20%
Portfolio turnover rate 6%(h) 44% 33%(h) 65%(k) 81% 81% 79%
Net assets, end
of period (000's) $245,574 $90,269 $73,276 $19,896 $102,909 $93,558 $71,063
- ------------------------------------------------------------------------------------------------------------------------------------
(a) On October 13, 2003, the Liberty Strategic Equity Fund was renamed Columbia
Strategic Equity Fund. On October 27, 2003, the Columbia Strategic Equity
Fund was renamed Columbia Dividend Income Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 25, 2002, Galaxy Strategic Equity Fund, Trust shares were
redesignated Liberty Strategic Equity Fund, Class Z shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) The amount shown for a share outstanding does not correspond with the
aggregate net gain (loss) on investments for the period due to the timing
of repurchases of Fund shares in relation to fluctuating market values of
the investments of the Fund.
(f) Total return at net asset value assuming all distributions reinvested.
(g) Had the Investment Advisor and/or any of its affiliates not waived a
portion of expenses, total return would have been reduced.
(h) Not annualized.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
(k) Portfolio turnover rate excludes securities delivered from processing a
redemption-in-kind.
27
BOARD CONSIDERATION AND APPROVAL OF INVESTMENT ADVISORY AGREEMENT
- --------------------------------------------------------------------------------
COLUMBIA DIVIDEND INCOME FUND
Section 15(c) of the Investment Company Act of 1940 (the "1940 Act") requires
that the Board of Trustees/Directors (the "Board") of the Columbia Funds (the
"Funds"), including a majority of the Trustees and Directors (collectively, the
"Trustees") who are not "interested persons" of the Trusts, as defined in the
1940 Act (the "Independent Trustees"), annually review and approve the terms of
the Funds' investment advisory agreements. During the most recent six months
covered by this report, the Board reviewed and approved the management contracts
("Advisory Agreements") with Columbia Management Advisors, Inc. ("CMA") for the
Fund.
At meetings held on September 23, 2004 and October 12, 2004, the Advisory Fees
and Expenses Committee (the "Committee") of the Board considered the factors
described below relating to the selection of CMA and the approval of the
Advisory Agreement. At a meeting held on October 13, 2004, the Board, including
the Independent Trustees (who were advised by their independent legal counsel),
considered these factors and reached the conclusions described below.
NATURE, EXTENT AND QUALITY OF SERVICES
The Board considered information regarding the nature, extent and quality of
services that CMA provides to the Fund under the Advisory Agreement. CMA
provided the most recent investment adviser registration form ("Form ADV") and
code of ethics for CMA to the Board. The Board reviewed information on the
status of Securities and Exchange Commission ("SEC") and New York Attorney
General ("NYAG") proceedings against CMA and certain of its affiliates,
including the agreement in principle entered into with the SEC and the NYAG on
March 15, 2004 to settle civil complaints filed by the SEC and the NYAG relating
to trading activity in mutual fund shares.1
The Board evaluated the ability of CMA, including its resources, reputation and
other attributes, to attract and retain highly qualified research, advisory and
supervisory investment professionals. The Board considered information regarding
CMA's compensation program for its personnel involved in the management of the
Fund.
Based on these considerations and other factors, including those referenced
below, the Board concluded that they were generally satisfied with the nature,
extent and quality of the investment advisory services provided to the Fund by
CMA.
FUND PERFORMANCE AND EXPENSES
CMA provided the Board with relative performance and expense information for the
Fund in a report prepared by Lipper Inc. ("Lipper") an independent provider of
investment company data. The Board considered the total return performance
information, which included the ranking of the Fund within a performance
universe made up of funds with the same Lipper investment classification and
objective (the "Performance Universe") by total return for one-year, three-year,
five-year, ten-year or life of fund periods, as applicable. They also considered
the Fund's performance in comparison to the performance results of a group (the
"Performance Peer Group") of funds selected by Lipper based on similarities in
fund type (e.g. open-end), investment classification and objective, asset size,
load type and 12b-1/service fees and other expense features, and to the
performance results of the Fund's benchmark index. The Board reviewed a
description of Lipper's methodology for selecting the mutual funds in the Fund's
Performance Peer Group and Performance Universe.
The Board considered statistical information regarding the Fund's total expenses
and certain components thereof, including management fees (both actual
management fees based on expenses for advisory and administrative fees including
any reductions for fee waivers and expense reimbursements as well as contractual
management fees that are computed for a hypothetical level of assets), actual
non-management expenses, and fee waivers/caps and expense reimbursements. They
also considered comparisons of these expenses to the expense information for
funds within a group (the "Expense Peer Group") selected by Lipper based on
similarities in fund type (e.g. open-end), investment
1 On February 9, 2005, CMA and its affiliate, Columbia Funds Distributor,
Inc., entered into settlement agreements with the SEC and the NYAG that
contain substantially the terms outlined in the agreements in principle.
28
>
- --------------------------------------------------------------------------------
COLUMBIA DIVIDEND INCOME FUND
classification and objective, asset size, load type and 12b-1/service fees and
other expense features (but which, unlike the Performance Peer Group, may
include funds with several different investment classifications and objectives)
and an expense universe ("Expense Universe") selected by Lipper based on the
criteria for determining the Expense Peer Group other than asset size. The
expense information in the Lipper report took into account all existing fee
waivers and expense reimbursements as well as all voluntary advisory fee
reductions applicable to certain Funds that were being proposed by management in
order to reduce the aggregate advisory fees received from mutual funds advised
by CMA and Banc of America Capital Management, LLC ("BACAP") by $32 million per
year for five years as contemplated by the agreement in principle with the NYAG.
The Committee also considered the projected impact on expenses of these Funds
resulting from the overall cost reductions that management anticipated would
result from the proposed shift to a common group of service providers for
transfer agency, fund accounting and custody services for mutual funds advised
by Bank of America affiliates.
The Boards also considered information is the Lipper report that ranked each
Fund based on (i) each Fund's one-year performance and actual advisory fees,
(ii) each Fund's one-year performance and total expenses and (iii) each Fund's
3-year performance and total expenses. Based on these comparisons and expense
and performance rankings of the Fund in the Lipper Report, CMA determined an
overall score for the Fund. The Committee and the Board also considered
projected savings to the Fund that would result from certain modifications in
soft dollar arrangements.
The Committee also considered more detailed information relating to certain
Funds that were highlighted for additional review based upon the fact that they
ranked poorly in terms of overall expense or management fees, maintained poor
performance or demonstrated a combination of below average to poor performance
while maintaining below average or poor expense rankings. At its September 23,
2004 meeting, the Committee discussed these Funds with management and in
executive session. The Committee requested additional information from
management regarding the cause(s) of the below-average relative performance of
these Funds, any remedial actions management recommended to improve performance
and the general standards for review of portfolio manager performance. At its
October 12, 2004 meeting, the Committee considered additional information
provided by management regarding these Funds. The Board also considered
management's proposal to merge or liquidate some of these Funds.
Based on these considerations and other factors, the Board concluded that the
overall performance and expense results supported by the approval of the
Advisory Agreements for each Fund.
INVESTMENT ADVISORY FEE RATES
The Board reviewed and considered the proposed contractual investment advisory
fee rates (the "Advisory Agreement Rates") payable by the Funds to CMA for
investment advisory services. In addition, the Board reviewed and considered the
existing and proposed fee waiver and reimbursement arrangements applicable to
the Advisory Agreement Rates and considered the Advisory Agreement Rates after
taking the fee waivers and reimbursements into account (the "Net Advisory
Rates"). At previous meetings, the Committee had separately considered
management's proposal to reduce annual investment advisory fees for certain
Funds under the NYAG agreement in principle and the impact of these reductions
on each affected Fund. Additionally, the Board considered information comparing
the Advisory Agreement Rates and Net Advisory Rates (both on a stand-alone basis
and on a combined basis with the Funds' administration fee rates) with those of
the other funds in the Expense Peer Group. The Board concluded that the Advisory
Agreement Rates and Net Advisory Rates represented reasonable compensation to
CMA, in light of the nature, extent and quality of the services provided to the
Funds, the fees paid and expenses borne by comparable funds and the costs that
CMA incurs in providing these services to the Funds.
29
- --------------------------------------------------------------------------------
COLUMBIA DIVIDEND INCOME FUND
PROFITABILITY
The Board considered a detailed profitability analysis of CMA based on 2003
financial statements, adjusted to take into account advisory fee reductions
implemented in November 2003 and proposed reductions under the NYAG proposed
settlement. The Board concluded that, in light of the costs of providing
investment management and other services to the Funds, the profits and other
ancillary benefits that CMA and its affiliates received for providing these
services to the Funds were not unreasonable.
ECONOMIES OF SCALE
In evaluating potential economies of scale, the Board considered CMA's proposal
to implement a standardized breakpoint schedule for combined advisory and
administrative fees for the majority of the funds of the same general asset type
within the Columbia Funds complex (other than index and closed-end funds). The
Board noted that the standardization of the breakpoints would not result in a
fee increase for any Fund. The Board concluded that any actual or potential
economies of scale are, or will be, shared fairly with Fund shareholders,
including most particularly through Advisory Agreement Rate breakpoints at
current and reasonably foreseeable asset levels.
INFORMATION ABOUT SERVICES TO OTHER CLIENTS
In evaluating the proposed fee reductions under the NYAG agreement in principle,
the Board considered information regarding the advisory fee rates charged by
BACAP for the Nations Funds. Members of the Committee and the Board had also
separately reviewed advisory fee rates for variable insurance product funds
advised by CMA. This information assisted the Board in assessing the
reasonableness of fees paid under the Advisory Agreements in light of the
nature, extent and quality of services provided under those agreements.
OTHER BENEFITS TO CMA
The Board considered information regarding potential "fall-out" or ancillary
benefits received by CMA and its affiliates as a result of their relationship
with the Funds. These benefits could include benefits directly attributable to
the relationship of CMA with the Funds (such as soft dollar credits) and
benefits potentially derived from an increase in the business of CMA as a result
of their relationship with the Funds (such as the ability to market to
shareholders other financial products offered by CMA and its affiliates).
OTHER FACTORS AND BROADER REVIEW
The Board reviews detailed materials provided by CMA annually as part of the
approval process under Section 15(c) of the 1940 Act. The Board also regularly
reviews and assesses the quality of the services that the Funds receive
throughout the year. In this regard, the Board reviews information provided by
CMA at their regular meetings, including, among other things, a detailed
portfolio review, and detailed fund performance reports. In addition, the Board
interviews the heads of each investment area at each regular meeting of the
Board and selected portfolio managers of the Funds at various times throughout
the year. After considering the above-described factors and based on the
deliberations and their evaluation of the information provided to them, the
Board concluded that re-approval of the Advisory Agreements for each of the
Funds was in the best interest of the Funds and their shareholders. Accordingly,
the Board unanimously approved the Advisory Agreements.
30
COLUMBIA FUNDS
- --------------------------------------------------------------------------------
COLUMBIA DIVIDEND INCOME FUND
- --------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------
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
Columbia Thermostat
- --------------------------------------------------------------------------------
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
31
- --------------------------------------------------------------------------------
COLUMBIA DIVIDEND INCOME FUND
- ------------------------------------------------------------------------------------------
SINGLE STATE TAX EXEMPT Columbia California Tax-Exempt
Columbia Connecticut Intermediate Municipal Bond
Columbia Connecticut Tax-Exempt
Columbia Florida Intermediate Municipal Bond*
Columbia Massachusetts Intermediate Municipal Bond
Columbia Massachusetts Tax-Exempt
Columbia New Jersey Intermediate Municipal Bond
Columbia New York Intermediate Municipal Bond
Columbia New York Tax-Exempt
Columbia Oregon Municipal Bond
Columbia Pennsylvania Intermediate Municipal Bond*
Columbia Rhode Island Intermediate Municipal Bond
- ------------------------------------------------------------------------------------------
MONEY MARKET Columbia Money Market
Columbia Municipal Money Market
- ------------------------------------------------------------------------------------------
INTERNATIONAL/GLOBAL Columbia Acorn International
Columbia Acorn International Select
Columbia Global Equity
Columbia International Stock
Columbia Newport Greater China
Columbia Newport Tiger*
- ------------------------------------------------------------------------------------------
INDEX Columbia Large Company Index*
Columbia Small Company Index*
Columbia U.S. Treasury Index
* The fund will be closed to new investments after the
close of business on April 29, 2005. The fund's
trustees have approved the merger, which is scheduled
to occur during September and October, pending
shareholder approval.
** The fund will be closed to new investments after the
close of business on April 29, 2005. The fund's
trustees have approved the liquidation, which is
scheduled to occur during September, pending
shareholder approval.
Please consider the investment objectives, risks,
charges and expenses of a mutual fund carefully before
investing. Contact us at 800-345-6611 for a prospectus
which contains this and other important information
about the fund. Read it carefully before you invest.
For complete product information on any Columbia fund, visit our website at
www.columbiafunds.com.
Columbia Management Group and Columbia Management refer collectively to the
various investment advisory subsidiaries of Columbia Management Group, including
Columbia Management Advisors, Inc., the registered investment advisor, and
Columbia Funds Distributor, Inc.
32
IMPORTANT INFORMATION ABOUT THIS REPORT
- --------------------------------------------------------------------------------
COLUMBIA DIVIDEND INCOME FUND
TRANSFER AGENT
Columbia Funds Services, Inc.
P.O. Box 8081
Boston MA 02266-8081
800-345-6611
DISTRIBUTOR
Columbia Funds Distributor, Inc.
One Financial Center
Boston MA 02111
INVESTMENT ADVISOR
Columbia Management Advisors, Inc.
100 Federal Street
Boston MA 02110
The funds mail one shareholder report to each shareholder address. If you would
like more than one report, please call shareholder services at 800-345-6611 and
additional reports will be sent to you.
This report has been prepared for shareholders of Columbia Dividend Income Fund.
This report may also be used as sales literature when preceded or accompanied by
the current prospectus which provides details of sales charges, investment
objectives and operating policies of the funds and with the most recent copy of
the Columbia Funds Performance Update.
A description of the policies and procedures that the fund uses to determine how
to vote proxies and a copy of the fund's voting record are available (i) at
www.columbiamanagement.com; (ii) on the Securities and Exchange Commission's
website at www.sec.gov, and (iii) without charge, upon request, by calling
800-368-0346. Information regarding how the fund voted proxies relating to
portfolio securities during the 12-month period ended June 30, 2004 is available
from the SEC's website. Information regarding how the fund voted proxies
relating to portfolio securities is also available from the fund's website.
The fund files a complete schedule of portfolio holdings with the SEC for the
first and third quarters of each fiscal year on Form N-Q. The fund's Form N-Q is
available on the SEC's website at www.sec.gov and may be reviewed and copied at
the SEC's Public Reference Room in Washington, D.C. Information on the operation
of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
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.
33
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easily on our website at www.columbiafunds.com.
Please note -- if you own your fund shares through a financial institution,
contact the institution to see if it offers electronic delivery. If you own your
fund shares through a retirement plan, electronic delivery may not be available
to you.
Columbia Dividend Income Fund Semiannual Report, March 31, 2005
Columbia Management(R)
(c) 2005 Columbia Funds Distributor, Inc.
One Financial Center, Boston, MA 02111-2621
800.345.6611 www.columbiafunds.com
---------------
PRSRT STD
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PAID
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Permit NO. 20
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G-03/050V-0405 (05/05) 05/5591
<Page>
[GRAPHIC]
COLUMBIA GROWTH STOCK FUND
SEMIANNUAL REPORT
MARCH 31, 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 7
Statement of Assets and Liabilities 10
Statement of Operations 11
Statement of Changes in Net Assets 12
Notes to Financial Statements 13
Financial Highlights 18
Board Consideration and Approval of Investment Advisory Agreement 22
Important Information
About This Report 25
</Table>
Economic and market conditions change frequently. There is no assurance that
trends described in this report will continue or commence.
NOT FDIC MAY LOSE VALUE
INSURED -------------------
NO BANK GUARANTEE
PRESIDENT'S MESSAGE
COLUMBIA GROWTH STOCK FUND
[PHOTO OF CHRISTOPHER WILSON]
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 help 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, we recently announced plans to consolidate the transfer agency of all
of our funds and consolidate custodial services, each under a single vendor. We
have also reduced management fees for many funds as part of our settlement
agreement (See Note 7 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 better 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 GROWTH STOCK FUND
The information below gives you a snapshot of your fund at the end of the
reporting period. Your fund is actively managed and the composition of its
portfolio will change over time.
SECTORS AS OF 03/31/05 (%)
<Table>
Information technology 35.4
Health care 21.6
Consumer staples 13.4
Consumer discretionary 13.3
Financials 7.7
Industrials 4.7
Energy 3.9
</Table>
TOP 10 HOLDINGS AS OF 03/31/05 (%)
<Table>
Microsoft 4.8
General Electric 4.7
Medtronic 4.6
Johnson & Johnson 4.2
Schlumberger 3.9
Costco Wholesale 3.9
Novartis 3.8
Wal-Mart Stores 3.5
Wells Fargo 3.3
Dell 3.3
</Table>
Portfolio holdings are calculated as a percentage of net assets. Sector
breakdown is calculated as a percentage of total investments excluding
short-term investments.
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 MARCH 31, 2005, THE FUND'S CLASS A SHARES
RETURNED 3.68% WITHOUT SALES CHARGE.
- - A STOCK MARKET RALLY IN THE FOURTH QUARTER OF 2004 HELPED THE FUND, ITS
BENCHMARK AND PEER GROUP TO A POSITIVE RETURN FOR THE PERIOD.
- - THE FUND BENEFITED FROM ITS STRATEGY OF BUYING AND HOLDING CONCENTRATED
POSITIONS IN STOCKS WITH STRONG LONG-TERM EARNINGS GROWTH PROSPECTS. A FEW
STOCKS WHOSE NEAR-TERM EARNINGS GROWTH FELL SHORT OF INVESTOR EXPECTATIONS
ACCOUNTED FOR MOST OF THE FUND'S SHORTFALL RELATIVE TO ITS BENCHMARK.
<Table>
CLASS A SHARES 3.68%
RUSSELL 1000 GROWTH INDEX 4.71%
</Table>
OBJECTIVE
Seeks long-term growth of capital
TOTAL NET ASSETS
$640.0 million
MANAGEMENT STYLE
[GRAPHIC]
1
<Page>
PERFORMANCE INFORMATION
COLUMBIA GROWTH STOCK FUND
[CHART]
VALUE OF A $10,000 INVESTMENT 04/01/95 - 03/31/05
<Table>
<Caption>
CLASS A SHARES CLASS A SHARES RUSSELL 1000
WITHOUT SALES CHARGE WITH SALES CHARGE GROWTH INDEX
04/1/1995 $ 10,000 $ 9,425 $ 10,000
4/30/1995 $ 10,271 $ 9,680 $ 10,219
5/31/1995 $ 10,483 $ 9,880 $ 10,575
6/30/1995 $ 10,905 $ 10,278 $ 10,983
7/31/1995 $ 11,305 $ 10,655 $ 11,440
8/31/1995 $ 11,425 $ 10,768 $ 11,452
9/30/1995 $ 12,009 $ 11,318 $ 11,980
10/31/1995 $ 11,940 $ 11,254 $ 11,989
11/30/1995 $ 12,515 $ 11,795 $ 12,455
12/31/1995 $ 12,647 $ 11,920 $ 12,526
1/31/1996 $ 12,916 $ 12,173 $ 12,944
2/29/1996 $ 13,087 $ 12,335 $ 13,181
3/31/1996 $ 13,244 $ 12,483 $ 13,198
4/30/1996 $ 13,401 $ 12,630 $ 13,545
5/31/1996 $ 13,977 $ 13,173 $ 14,018
6/30/1996 $ 14,128 $ 13,316 $ 14,038
7/31/1996 $ 13,265 $ 12,502 $ 13,215
8/31/1996 $ 13,598 $ 12,816 $ 13,556
9/30/1996 $ 14,537 $ 13,701 $ 14,543
10/31/1996 $ 14,840 $ 13,986 $ 14,630
11/30/1996 $ 15,657 $ 14,757 $ 15,729
12/31/1996 $ 15,297 $ 14,418 $ 15,421
1/31/1997 $ 16,636 $ 15,679 $ 16,502
2/28/1997 $ 16,301 $ 15,364 $ 16,390
3/31/1997 $ 15,260 $ 14,382 $ 15,503
4/30/1997 $ 16,461 $ 15,514 $ 16,532
5/31/1997 $ 17,524 $ 16,516 $ 17,726
6/30/1997 $ 18,330 $ 17,276 $ 18,435
7/31/1997 $ 19,745 $ 18,610 $ 20,065
8/31/1997 $ 18,430 $ 17,370 $ 18,891
9/30/1997 $ 19,352 $ 18,239 $ 19,820
10/31/1997 $ 18,930 $ 17,841 $ 19,087
11/30/1997 $ 19,369 $ 18,255 $ 19,898
12/31/1997 $ 20,138 $ 18,980 $ 20,121
1/31/1998 $ 20,067 $ 18,913 $ 20,723
2/28/1998 $ 21,508 $ 20,271 $ 22,281
3/31/1998 $ 22,448 $ 21,157 $ 23,170
4/30/1998 $ 22,751 $ 21,443 $ 23,490
5/31/1998 $ 22,501 $ 21,207 $ 22,822
6/30/1998 $ 23,855 $ 22,484 $ 24,219
7/31/1998 $ 23,529 $ 22,176 $ 24,059
8/31/1998 $ 19,460 $ 18,341 $ 20,448
9/30/1998 $ 20,260 $ 19,095 $ 22,018
10/31/1998 $ 21,849 $ 20,592 $ 23,789
11/30/1998 $ 23,465 $ 22,116 $ 25,599
12/31/1998 $ 25,282 $ 23,828 $ 27,908
1/31/1999 $ 27,418 $ 25,841 $ 29,546
2/28/1999 $ 26,642 $ 25,110 $ 28,196
3/31/1999 $ 28,329 $ 26,700 $ 29,682
4/30/1999 $ 27,855 $ 26,254 $ 29,721
5/31/1999 $ 27,109 $ 25,550 $ 28,808
6/30/1999 $ 29,118 $ 27,443 $ 30,825
7/31/1999 $ 28,189 $ 26,568 $ 29,845
8/31/1999 $ 27,828 $ 26,228 $ 30,331
9/30/1999 $ 27,552 $ 25,968 $ 29,694
10/31/1999 $ 29,252 $ 27,570 $ 31,936
11/30/1999 $ 30,589 $ 28,830 $ 33,660
12/31/1999 $ 34,538 $ 32,552 $ 37,161
1/31/2000 $ 34,601 $ 32,611 $ 35,418
2/29/2000 $ 38,036 $ 35,849 $ 37,150
3/31/2000 $ 39,988 $ 37,688 $ 39,810
4/30/2000 $ 38,000 $ 35,815 $ 37,915
5/31/2000 $ 35,074 $ 33,057 $ 36,004
6/30/2000 $ 38,199 $ 36,003 $ 38,733
7/31/2000 $ 36,908 $ 34,786 $ 37,118
8/31/2000 $ 40,481 $ 38,153 $ 40,477
9/30/2000 $ 37,206 $ 35,067 $ 36,648
10/31/2000 $ 34,308 $ 32,335 $ 34,915
11/30/2000 $ 29,611 $ 27,908 $ 29,768
12/31/2000 $ 30,621 $ 28,860 $ 28,828
1/31/2001 $ 31,637 $ 29,818 $ 30,820
2/28/2001 $ 27,778 $ 26,180 $ 25,587
3/31/2001 $ 25,708 $ 24,230 $ 22,803
4/30/2001 $ 28,163 $ 26,544 $ 25,687
5/31/2001 $ 27,406 $ 25,830 $ 25,310
6/30/2001 $ 26,301 $ 24,789 $ 24,722
7/31/2001 $ 25,018 $ 23,579 $ 24,104
8/31/2001 $ 23,074 $ 21,747 $ 22,133
9/30/2001 $ 21,027 $ 19,818 $ 19,924
10/31/2001 $ 21,658 $ 20,413 $ 20,970
11/30/2001 $ 23,423 $ 22,076 $ 22,985
12/31/2001 $ 23,290 $ 21,950 $ 22,941
1/31/2002 $ 22,593 $ 21,294 $ 22,535
2/28/2002 $ 21,488 $ 20,253 $ 21,600
3/31/2002 $ 22,460 $ 21,168 $ 22,347
4/30/2002 $ 21,184 $ 19,966 $ 20,524
5/31/2002 $ 20,784 $ 19,589 $ 20,027
6/30/2002 $ 19,115 $ 18,016 $ 18,175
7/31/2002 $ 17,450 $ 16,446 $ 17,175
8/31/2002 $ 17,378 $ 16,379 $ 17,227
9/30/2002 $ 15,658 $ 14,758 $ 15,440
10/31/2002 $ 16,474 $ 15,526 $ 16,856
11/30/2002 $ 17,431 $ 16,428 $ 17,771
12/31/2002 $ 16,331 $ 15,392 $ 16,543
1/31/2003 $ 16,047 $ 15,124 $ 16,141
2/28/2003 $ 15,604 $ 14,707 $ 16,067
3/31/2003 $ 15,941 $ 15,024 $ 16,366
4/30/2003 $ 17,165 $ 16,178 $ 17,575
5/31/2003 $ 17,980 $ 16,947 $ 18,452
6/30/2003 $ 18,051 $ 17,013 $ 18,707
7/31/2003 $ 18,653 $ 17,581 $ 19,173
8/31/2003 $ 18,991 $ 17,899 $ 19,650
9/30/2003 $ 18,370 $ 17,314 $ 19,440
10/31/2003 $ 19,346 $ 18,233 $ 20,533
11/30/2003 $ 19,771 $ 18,634 $ 20,748
12/31/2003 $ 20,356 $ 19,186 $ 21,466
1/31/2004 $ 20,409 $ 19,236 $ 21,904
2/29/2004 $ 20,179 $ 19,018 $ 22,044
3/31/2004 $ 19,682 $ 18,551 $ 21,634
4/30/2004 $ 19,328 $ 18,217 $ 21,383
5/31/2004 $ 19,842 $ 18,701 $ 21,781
6/30/2004 $ 19,824 $ 18,684 $ 22,053
7/31/2004 $ 18,690 $ 17,616 $ 20,807
8/31/2004 $ 18,335 $ 17,281 $ 20,705
9/30/2004 $ 18,300 $ 17,248 $ 20,902
10/31/2004 $ 18,780 $ 17,700 $ 21,228
11/30/2004 $ 19,206 $ 18,102 $ 21,958
12/31/2004 $ 19,773 $ 18,636 $ 22,819
1/31/2005 $ 19,241 $ 18,134 $ 22,059
2/28/2005 $ 19,543 $ 18,419 $ 22,293
03/31/2005 $ 18,965 $ 17,875 $ 21,888
</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 Russell
1000 Growth Index is an unmanaged index that measures the performance of those
Russell 1000 Index companies with higher price-to-book ratios and higher
forecasted growth values. Unlike the fund, indices are not investments, do not
incur fees or expenses and are not professionally managed. It is not possible to
invest directly in an index. Securities in the fund may not match those in an
index.
AVERAGE ANNUAL TOTAL RETURN AS OF 03/31/05 (%)
<Table>
<Caption>
SHARE CLASS A B C Z
- ------------------------------------------------------------------------------------------------
INCEPTION 07/15/02 07/15/02 07/15/02 07/01/58
- ------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- ------------------------------------------------------------------------------------------------
6-MONTH (CUMULATIVE) 3.68 -2.28 3.36 -1.64 3.26 2.26 4.07
1-YEAR -3.60 -9.17 -4.25 -9.03 -4.25 -5.21 -2.80
5-YEAR -13.85 -14.87 -14.18 -14.47 -14.18 -14.18 -13.52
10-YEAR 6.61 5.98 6.41 6.41 6.41 6.41 6.82
</Table>
THE "WITH SALES CHARGE" RETURNS INCLUDE THE MAXIMUM INITIAL SALES CHARGE OF
5.75% FOR CLASS A SHARES, MAXIMUM CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR
CLASS B SHARES AND 1.00% FOR CLASS C 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 reimbursements of fund
expenses by the advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower.
The performance information for class A, B and C shares (newer class shares)
includes returns for the fund's class Z shares (the oldest existing fund class)
for periods prior to the inception date of the newer class shares. The newer
class shares returns are not restated to reflect any expense differential (e.g.
Rule 12b-1 fees and transfer agent fees) between class Z shares and the newer
class shares. Had the expense differential been reflected, the returns for the
periods prior to the inception of the newer class shares would have been
different. Class A, B and C shares were initially offered July 15, 2002 and
class Z shares were initially offered July 1, 1958.
[SIDENOTE]
PERFORMANCE OF A $10,000 INVESTMENT 04/01/95 - 03/31/05 ($)
<Table>
<Caption>
SALES CHARGE: WITHOUT WITH
- --------------------------------------------
CLASS A 18,965 17,875
CLASS B 18,606 18,606
CLASS C 18,607 18,607
CLASS Z 19,336 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 GROWTH STOCK FUND
As a fund shareholder, you incur two types of costs. There are transaction
costs, which generally include sales charges on purchases and may include
redemption or exchange fees. There are also ongoing costs, which generally
include investment advisory, 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
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
10/01/04 - 03/31/05
<Table>
<Caption>
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
- -------------------------------------------------------------------------------------------------------------------------
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
- -------------------------------------------------------------------------------------------------------------------------
CLASS A 1,000.00 1,000.00 1,036.80 1,016.53 8.56 8.47 1.69
CLASS B 1,000.00 1,000.00 1,033.61 1,012.81 12.33 12.20 2.43
CLASS C 1,000.00 1,000.00 1,032.61 1,013.06 12.07 11.95 2.38
CLASS Z 1,000.00 1,000.00 1,040.74 1,020.34 4.69 4.64 0.92
</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 class Z shares'
expenses, class Z shares' total return would have been reduced.
Had the distributor not waived a portion of class A shares' expenses, class A
shares' 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 funds, it is important to note that hypothetical examples are
meant to highlight the continuing cost of investing in a fund and do not reflect
any transactional costs, such as sales charges or redemption or exchange
fees.
[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 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
3
<Page>
ECONOMIC UPDATE
COLUMBIA GROWTH STOCK FUND
During the six-month period that began October 1, 2004, and ended March 31,
2005, the US economy grew at a healthy pace as household and business spending
expanded. Fourth quarter gross domestic product (GDP) growth was originally
estimated at 3.1%. However, it was revised to 3.8% once it was discovered that
the trade gap appeared to have been overstated. In fact, nearly all sectors that
contribute to US GDP were revised higher. First quarter GDP was reported at
3.1%--lower than most economists expected it to be, but still slightly above the
economy's long-term growth rate of 3.0%.
Job growth dominated US economic news as the pace of new job creation picked up
and more than two million jobs were created in 2004. In 2005 both January and
March job additions came in somewhat below expectations, putting an end to the
rise in consumer confidence readings. Yet, consumers overall remained
significantly more optimistic about the prospects for the economy and about
their own employment than they were a year ago.
STOCKS PICK UP, THEN LOSE MOMENTUM
Stock market performance picked up as employment news improved in 2004 and
uncertainty surrounding the US presidential election was resolved. But investors
turned cautious early in 2005 at the possibility of higher interest rates,
higher inflation, sharply higher energy prices and subdued corporate profit
growth and the stock market lost momentum. Nevertheless, the stock market
delivered solid gains for the period. The S&P 500 Index returned 6.88%.
Small-cap stocks did better than large-cap stocks, as measured by the Russell
2000 Index, which gained 8.00% over the same period. Energy and utility stocks
were the period's strongest performers.
BOND RETURNS SLIDE LATE IN THE PERIOD
In the first half of the period, the US bond market was on track to deliver
solid returns. Bond investors responded favorably to short-term interest rate
hikes by the Federal Reserve Board (the Fed) because they indicated that the Fed
was on top of inflation. Yields on intermediate and long-term bonds edged
lower--and prices rose. However, halfway through the period, investors were
unsettled by Fed Chairman Greenspan's comments that the movement of short and
long-term rates in opposite directions represented a conundrum for the markets,
and bonds reversed course in the last six weeks of the period. The Lehman
Brothers Aggregate Bond Index returned 0.47% for the period. Municipal bonds
outperformed taxable bonds, Treasury bonds outperformed corporate bonds and
high-yield bonds led the fixed income markets. The Merrill Lynch US High Yield,
Cash Pay Index returned 2.96%.
HIGHER SHORT-TERM INTEREST RATES
The Fed made good on its announced intentions to raise the federal funds rate, a
key short-term rate, in an effort to balance economic growth against
inflationary pressures. After four one-quarter percentage point increases during
this reporting period, the federal funds rate stood at 2.75%.(1) Last year the
Fed indicated that it would continue to raise short-term interest rates at a
measured pace. However, in its March meeting, the Fed hinted at the possibility
of a more aggressive pace in months to come.
(1) On May 3, 2005, the federal funds rate was raised to 3.0%.
[SIDENOTE]
SUMMARY
FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2005
- - BUOYED BY A MARKET RALLY IN THE FIRST HALF OF THE PERIOD, THE S&P 500 INDEX
RETURNED 6.88%. SMALL-CAP STOCKS DID EVEN BETTER, AS MEASURED BY THE RUSSELL
2000 INDEX.
<Table>
S&P 500 INDEX 6.88%
RUSSELL 2000 INDEX 8.00%
</Table>
- - DESPITE RISING INTEREST RATES, BONDS DELIVERED MODEST GAINS. THE LEHMAN
BROTHERS AGGREGATE BOND INDEX RETURNED 0.47%. HIGH-YIELD BONDS LED THE FIXED
INCOME MARKETS. THE MERRILL LYNCH US HIGH YIELD, CASH PAY INDEX RETURNED
2.96%
<Table>
LEHMAN INDEX 0.47%
MERRILL LYNCH INDEX 2.96%
</Table>
The S&P 500 Index is an unmanaged index that tracks the performance of 500
widely held, large capitalization US stocks.
The Russell 2000 Index is an unmanaged index that tracks the performance of the
2,000 smallest of the 3,000 largest US companies based on market capitalization.
The Lehman Brothers Aggregate Bond Index is a market value-weighted index that
tracks the daily price, coupon, paydowns and total return performance of
fixed-rate, publicly placed, dollar-denominated, non-convertible
investment-grade debt issues with at least $250 million par amount outstanding
and with at least one year to final maturity.
The Merrill Lynch US High Yield, Cash Pay Index is an unmanaged index that
tracks the performance of non-investment grade corporate bonds.
4
<Page>
PORTFOLIO MANAGER'S REPORT
COLUMBIA GROWTH STOCK FUND
For the six-month period ended March 31, 2005, Columbia Growth Stock Fund class
A shares returned 3.68% without sales charge. Performance trailed the Russell
1000 Growth Index, which returned 4.71%, as well as the Morningstar Large Growth
Category average, which was 5.42%.(1) We maintained our strategy of buying and
holding concentrated positions in stocks with the potential for superior
performance over the long term. Our patience resulted in strong returns from
many stocks. However, the fund underperformed its benchmark primarily because of
disappointing returns from selected consumer staples and financial stocks.
DISAPPOINTING RETURNS FROM CONSUMER STAPLES AND FINANCIAL STOCKS
In consumer staples, Wal-Mart Stores' sales growth suffered as higher gasoline
prices curbed discretionary spending for lower income consumers. Financials
produced weak returns, led by American International Group. The stock declined
sharply, as the New York attorney general's office began questioning the
company's accounting practices. We held onto both investments, believing in
their long-term potential.
MEDIA WINNERS BOLSTERED CONTRIBUTION FROM CONSUMER DISCRETIONARY SECTOR
Consumer discretionary stocks delivered the biggest boost to performance during
the six-month reporting period. Within the sector, we focused on media stocks.
After declining in 2004, media stocks reached levels that attracted renewed
investor interest in 2005. Merger and acquisition activity as well as talk of
share buybacks and potential restructurings further propelled the industry.
Comcast, a leading cable company, was among the top contributors to performance.
RESUSCITATED HEALTH CARE STOCKS AIDED PERFORMANCE
Some health care stocks were standouts. Johnson & Johnson rallied nicely after
reporting strong growth in its consumer products business and announcing it
would acquire Guidant (not in the portfolio). In addition, Cardinal Health, a
pharmaceutical wholesaler, rebounded in anticipation of the company's improved
prospects. We downplayed branded pharmaceuticals amid concerns over the safety
of COX-2 inhibitors, the impact of patent expirations and the lack of new
blockbuster drugs. The fund did, however, have an investment in Pfizer, which
detracted from returns.
(1) (C)2004, Morningstar, Inc. All rights reserved. The information contained
herein is the proprietary information of Morningstar, Inc., may not be
copied or redistributed for any purpose and may only be used for
noncommercial, personal purposes. The information contained herein is not
represented or warranted to be accurate, correct, complete or timely.
Morningstar, Inc. shall not be responsible for investment decisions,
damages or other losses resulting from the use of this information. Past
performance is no guarantee of future performance. Morningstar, Inc. has
not granted consent for it to be considered or deemed an "expert" under the
Securities Act of 1933.
Morningstar Categories compare the performance of funds with similar
investment objectives and strategies.
[SIDENOTE]
NET ASSET VALUE PER SHARE
AS OF 03/31/05 ($)
<Table>
CLASS A 10.70
CLASS B 10.15
CLASS C 10.14
CLASS Z 8.69
</Table>
HOLDINGS DISCUSSED IN THIS REPORT AS OF 03/31/05 (%)
<Table>
WAL-MART STORES 3.5
AMERICAN INTERNATIONAL GROUP 2.8
COMCAST 3.1
JOHNSON & JOHNSON 4.2
CARDINAL HEALTH 2.9
PFIZER 3.1
ANALOG DEVICES 1.7
MAXIM INTEGRATED PRODUCTS 2.8
ASML HOLDING NV 3.0
MARVELL TECHNOLOGY 1.7
</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>
RISING ENERGY PRICES PRESSURED TECHNOLOGY STOCKS
The fund had a larger position in technology stocks than its benchmark, even as
sharply higher oil prices hampered the growth of corporate spending. As many
tech companies struggled with overstocked inventories, stock prices faltered.
Yet, we continued to believe in the sector's above-average, long-term growth
prospects, focusing on high-quality tech companies with proprietary products
that could drive superior earnings growth over time. Investments in Analog
Devices and Maxim Integrated Products posted disappointing near-term returns,
but ASML Holding NV and Marvell Technology enjoyed sharp gains as investors
returned to the sector late in the period. ASML is the leading manufacturer of
the lithography machines that print the patterns on semiconductors. Marvell
Technology is best known for making semiconductors that go into products like
the Apple iPod. Both companies generated strong earnings growth while
positioning themselves for next-generation technologies.
POTENTIALLY GREATER REWARDS FOR COMPANIES WITH STRONG EARNINGS GROWTH
While many companies benefit in the early stages of an economic recovery, it
becomes more difficult to increase profits when economic growth slows to a more
moderate pace. As a result, investors typically become more selective in the
latter stages of the economic cycle. History shows that they tend to put more of
a premium on companies with good businesses that can continue to deliver strong
earnings growth. While many companies benefit in the early stages of an economic
recovery, it becomes more difficult to increase profits when economic growth
slows to a more moderate pace. In the latter stages of an economic cycle revenue
and earnings growth become increasingly more scarce. In response, investors tend
to focus on high quality companies that can sustain superior growth and
profitability. The fund's portfolio concentrates on high quality companies that
we believe can produce superior results over the course of the economic cycle.
[PHOTO OF PAUL BLAUSTEIN]
Paul Blaustein, CFA, has managed Columbia Growth Stock Fund since November 2003
and has been with the advisor since 2003.
/s/ Paul A Blaustein
Equity investments are affected by stock market fluctuations that occur in
response to economic and business developments.
Investing in growth stocks incurs the possibility of losses because their prices
are sensitive to changes in current or expected earnings.
[SIDENOTE]
THE FUND'S PORTFOLIO CONCENTRATES ON HIGH QUALITY COMPANIES THAT WE BELIEVE CAN
PRODUCE SUPERIOR RESULTS OVER THE COURSE OF THE ECONOMIC CYCLE.
6
<Page>
INVESTMENT PORTFOLIO
MARCH 31, 2005 (UNAUDITED) COLUMBIA GROWTH STOCK FUND
<Table>
<Caption>
SHARES VALUE ($)
- -------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 99.4%
CONSUMBER DISCRETIONARY - 13.2%
Media - 11.6% Comcast Corp., Class A (a) 590,900 19,960,602
Liberty Media Corp., Class A (a) 944,300 9,792,391
Liberty Media International,
Inc., Class A (a) 58,210 2,546,105
News Corp., Class B 556,900 9,807,009
Time Warner, Inc. (a) 853,600 14,980,680
Viacom, Inc., Class B 497,700 17,334,891
Media Total 74,421,678
SPECIALTY RETAIL - 1.6% Home Depot, Inc. 266,100 10,175,664
Specialty Retail Total 10,175,664
--------------
CONSUMER DISCRETIONARY
TOTAL 84,597,342
CONSUMER STAPLES - 13.3%
FOOD & STAPLES RETAILING - 7.4% Costco Wholesale Corp. 564,900 24,957,282
Wal-Mart Stores, Inc. 447,300 22,414,203
Food & Staples Retailing
Total 47,371,485
HOUSEHOLD PRODUCTS - 5.9% Colgate-Palmolive Co. 382,400 19,949,808
Procter & Gamble Co. 335,700 17,792,100
Household Products Total 37,741,908
--------------
CONSUMER STAPLES TOTAL 85,113,393
ENERGY - 3.9%
ENERGY EQUIPMENT & SERVICES - 3.9% Schlumberger Ltd. 355,400 25,048,592
Energy Equipment &
Services Total 25,048,592
--------------
ENERGY TOTAL 25,048,592
FINANCIALS - 7.6%
CAPITAL MARKETS - 1.5% Merrill Lynch & Co., Inc. 167,700 9,491,820
Capital Markets Total 9,491,820
COMMERCIAL BANKS - 3.3% Wells Fargo & Co. 356,300 21,306,740
Commercial Banks Total 21,306,740
INSURANCE - 2.8% American International Group, Inc. 325,800 18,052,578
Insurance Total 18,052,578
--------------
FINANCIALS TOTAL 48,851,138
HEALTH CARE - 21.5%
BIOTECHNOLOGY - 3.0% Amgen, Inc. (a) 324,000 18,860,040
Biotechnology Total 18,860,040
HEALTH CARE EQUIPMENT & SUPPLIES - 4.6% Medtronic, Inc. 577,000 29,398,150
Health Care Equipment &
Supplies Total 29,398,150
HEALTH CARE PROVIDERS & SERVICES - 2.9% Cardinal Health, Inc. 333,000 18,581,400
Health Care Providers &
Services Total 18,581,400
PHARMACEUTICALS - 11.0% Johnson & Johnson 398,700 26,776,692
Novartis AG, ADR 518,300 24,246,074
Pfizer, Inc. 745,500 19,584,285
Pharmaceuticals Total 70,607,051
--------------
HEALTH CARE TOTAL 137,446,641
</Table>
See Accompanying Notes to Financial Statements.
7
<Page>
<Table>
<Caption>
SHARES VALUE ($)
- -------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
INDUSTRIALS - 4.7%
INDUSTRIAL CONGLOMERATES - 4.7% General Electric Co. 832,400 30,016,344
Industrial Conglomerates
Total 30,016,344
--------------
INDUSTRIALS TOTAL 30,016,344
INFORMATION TECHNOLOGY - 35.2%
COMMUNICATIONS EQUIPMENT - 3.1% Cisco Systems, Inc. (a) 1,103,700 19,745,193
Communications Equipment
Total 19,745,193
COMPUTERS & PERIPHERALS - 3.3% Dell, Inc. (a) 545,400 20,954,268
Computers & Peripherals
Total 20,954,268
IT SERVICES - 1.8% Paychex, Inc. 343,800 11,283,516
IT Services Total 11,283,516
SEMICONDUCTORS &
SEMICONDUCTOR EQUIPMENT - 20.6% Altera Corp. (a) 979,600 19,376,488
Analog Devices, Inc. 293,800 10,617,932
Applied Materials, Inc. 847,400 13,770,250
ASML Holding N.V., N.Y. Registered
Shares (a) 1,141,000 19,134,570
Marvell Technology Group Ltd. (a) 291,800 11,187,612
Maxim Integrated Products, Inc. 432,300 17,668,101
Microchip Technology, Inc. 333,600 8,676,936
Novellus Systems, Inc. (a) 486,000 12,990,780
Xilinx, Inc. 629,000 18,385,670
Semiconductors &
Semiconductor Equipment
Total 131,808,339
SOFTWARE - 6.4% Microsoft Corp. 1,259,600 30,444,532
SAP AG, ADR 272,000 10,901,760
Software Total 41,346,292
--------------
INFORMATION TECHNOLOGY
TOTAL 225,137,608
--------------
TOTAL COMMON STOCKS (cost of $541,350,424) 636,211,058
<Caption>
PAR ($)
- -------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM OBLIGATION - 0.7%
Repurchase agreement with State
Street Bank & Trust Co., dated
03/31/05, due 04/01/05 at 2.450%,
collateralized by a U.S. Treasury
Bill maturing 05/31/05, market value
of $4,662,704 (repurchase proceeds
$4,569,311) 4,569,000 4,569,000
TOTAL SHORT-TERM OBLIGATION
(COST OF $4,569,000) 4,569,000
TOTAL INVESTMENTS - 100.1%
(COST OF $545,919,424) (b) 640,780,058
OTHER ASSETS & LIABILITIES, NET - (0.1)% (819,338)
NET ASSETS - 100.0% 639,960,720
</Table>
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing security.
(b) Cost for federal income tax purposes is $545,919,424.
<Table>
<Caption>
ACRONYM NAME
ADR American Depositary Receipt
</Table>
See Accompanying Notes to Financial Statements.
8
<Page>
At March 31, 2005, the Fund held investments in the following sectors:
<Table>
<Caption>
% OF
SECTOR NET ASSETS
- -------------------------------------------------------------
Information Technology 35.2%
Health Care 21.5
Consumer Staples 13.3
Consumer Discretionary 13.2
Financials 7.6
Industrials 4.7
Energy 3.9
Short-Term Obligation 0.7
Other Assets & Liabilities, Net (0.1)
-----
100.0%
=====
</Table>
See Accompanying Notes to Financial Statements.
9
<Page>
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2005 (UNAUDITED) COLUMBIA GROWTH STOCK FUND
<Table>
<Caption>
($)
- ------------------------------------------------------------------------------------------------------------------------------
ASSETS Investments, at cost 545,919,424
----------------
Investments, at value 640,780,058
Cash 86
Receivable for:
Fund shares sold 230,554
Interest 311
Dividends 831,522
Expense reimbursement due from Investment Advisor 35,283
Deferred Trustees' compensation plan 23,564
Other assets 202,855
----------------
Total Assets 642,104,233
LIABILITIES Payable for:
Fund shares repurchased 1,044,852
Investment advisory fee 338,585
Administration fee 76,181
Transfer agent fee 365,285
Pricing and bookkeeping fees 10,700
Distribution and service fees 208,513
Deferred Trustees' fees 23,564
Other liabilities 75,833
----------------
Total Liabilities 2,143,513
NET ASSETS 639,960,720
COMPOSITION OF NET ASSETS Paid-in capital 1,012,306,232
Undistributed net investment income 2,202,275
Accumulated net realized loss (469,408,421)
Net unrealized appreciation on investments 94,860,634
----------------
NET ASSETS 639,960,720
CLASS A Net assets 56,786,409
Shares outstanding 5,304,682
Net asset value per share 10.70(a)
Maximum offering price per share ($10.70/0.9425) 11.35(b)
CLASS B Net assets 212,428,912
Shares outstanding 20,937,195
Net asset value and offering price per share 10.15(a)
CLASS C Net assets 17,157,023
Shares outstanding 1,691,355
Net asset value and offering price per share 10.14(a)
CLASS Z Net assets 353,588,376
Shares outstanding 40,696,637
Net asset value, offering and redemption price per share 8.69
</Table>
(a) Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
(b) On sales of $50,000 or more the offering price is reduced.
See Accompanying Notes to Financial Statements.
10
<Page>
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED MARCH 31, 2005 (UNAUDITED)
<Table>
<Caption>
($)
- ------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME Dividends 7,500,533
Interest 33,941
----------------
Total Investment Income (net of foreign taxes
withheld of $70,074) 7,534,474
EXPENSES Investment advisory fee 2,008,277
Administration fee 490,424
Distribution fee:
Class A 31,316
Class B 885,532
Class C 71,333
Service fee:
Class A 78,291
Class B 295,177
Class C 23,778
Transfer agent fee:
Class A 179,082
Class B 728,859
Class C 53,996
Class Z 290,313
Pricing and bookkeeping fees 88,195
Trustees' fees 11,605
Custody fee 11,994
Non-recurring costs (See Note 7) 7,673
Other expenses 172,491
----------------
Total Expenses 5,428,336
Fees and expenses waived or reimbursed by
Investment Advisor - Class Z (91,471)
Fees waived by Distributor - Class A (15,658)
Non-recurring costs assumed by
Investment Advisor (See Note 7) (7,673)
----------------
Net Expenses 5,313,534
----------------
Net Investment Income 2,220,940
NET REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain on investments 18,925,798
ON INVESTMENTS Net increase from payments by affiliates and net
realized loss on disposal of investments
purchased/sold in error (See Note 8) --
----------------
Net realized gain 18,925,798
Net change in unrealized
appreciation/depreciation on investments 6,392,774
----------------
Net Gain 25,318,572
----------------
Net Increase in Net Assets
from Operations 27,539,512
</Table>
See Accompanying Notes to Financial Statements.
11
<Page>
STATEMENT OF CHANGES IN NET ASSETS
<Table>
<Caption>
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED
MARCH 31, SEPTEMBER 30,
INCREASE (DECREASE) IN NET ASSETS: 2005 ($) 2004 ($)
- ------------------------------------------------------------------------------------------------------------------------------
OPERATIONS Net investment income (loss) 2,220,940 (5,217,593)
Net realized gain on investments 18,925,798 62,741,007
Net increase from payments by affiliates and
net realized loss on disposal of investments
purchased/sold in error (See Note 8) -- --
Net change in unrealized
appreciation/depreciation on investments 6,392,774 (53,726,795)
---------------------------------
Net Increase from Operations 27,539,512 3,796,619
SHARE TRANSACTIONS Class A:
Subscriptions 4,428,356 14,653,162
Redemptions (16,370,380) (31,034,051)
---------------------------------
Net Decrease (11,942,024) (16,380,889)
Class B:
Subscriptions 4,518,737 15,919,825
Redemptions (46,004,428) (74,892,692)
---------------------------------
Net Decrease (41,485,691) (58,972,867)
Class C:
Subscriptions 1,006,979 2,549,820
Redemptions (4,654,365) (10,634,792)
---------------------------------
Net Decrease (3,647,386) (8,084,972)
Class Z:
Subscriptions 33,265,264 70,908,194
Redemptions (55,038,901) (98,706,026)
---------------------------------
Net Decrease (21,773,637) (27,797,832)
Net Decrease from Share
Transactions (78,848,738) (111,236,560)
---------------------------------
Total Decrease in Net Assets (51,309,226) (107,439,941)
NET ASSETS Beginning of period 691,269,946 798,709,887
End of period (including undistributed
net investment income (loss) of $2,202,275
and $(18,665), respectively) 639,960,720 691,269,946
CHANGES IN SHARES Class A:
Subscriptions 407,208 1,324,748
Redemptions (1,510,165) (2,828,087)
---------------------------------
Net Decrease (1,102,957) (1,503,339)
Class B:
Subscriptions 438,729 1,497,689
Redemptions (4,465,103) (7,140,520)
---------------------------------
Net Decrease (4,026,374) (5,642,831)
Class C:
Subscriptions 98,112 240,936
Redemptions (454,550) (1,008,828)
---------------------------------
Net Decrease (356,438) (767,892)
Class Z:
Subscriptions 3,801,597 7,969,960
Redemptions (6,227,246) (11,099,886)
---------------------------------
Net Decrease (2,425,649) (3,129,926)
</Table>
See Accompanying Notes to Financial Statements.
12
<Page>
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2005 (UNAUDITED) COLUMBIA GROWTH STOCK FUND
NOTE 1. ORGANIZATION
Columbia Growth Stock Fund (the "Fund"), a series of Columbia Funds Trust XI
(the "Trust"), is a diversified portfolio. The Trust is a Massachusetts business
trust registered under the Investment Company Act of 1940, as amended, as an
open-end management investment company.
INVESTMENT GOALS
The Fund seeks long-term growth of capital.
FUND SHARES
The Fund may issue an unlimited number of shares and offers four classes of
shares: Class A, Class B, Class C and Class Z. Each share class has its own
sales charge and expense structure.
Class A shares are subject to a maximum front-end sales charge of 5.75% based on
the amount of initial investment. Class A shares purchased without an initial
sales charge are subject to a 1.00% contingent deferred sales charge ("CDSC") on
shares sold within eighteen months on an original purchase of $1 million to $25
million. Class B shares are subject to a maximum CDSC of 5.00% based upon the
holding period after purchase. Class B shares will convert to Class A shares in
a certain number of years after purchase, depending on the program under which
shares were purchased. Class C shares are subject to a 1.00% CDSC on shares sold
within one year after purchase. Class Z shares are offered continuously at net
asset value. There are certain restrictions on the purchase of Class Z shares,
as described in the Fund's prospectus.
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.
Investments for which market quotations are not readily available, or quotations
which management believes are not appropriate, are valued at fair value as
determined in good faith under consistently applied procedures established by
and under the general supervision of the Board of Trustees.
SECURITY TRANSACTIONS
Security transactions are accounted for on the trade date. Cost is determined
and gains (losses) are based upon the specific identification method for both
financial statement and federal income tax purposes.
REPURCHASE AGREEMENTS
The Fund may engage in repurchase agreement transactions with institutions that
the Fund's investment advisor has determined are creditworthy. The Fund, through
its custodian, receives delivery of underlying securities collateralizing a
repurchase agreement. Collateral is at least equal, at all times, to the value
of the repurchase obligation including 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. Awards from class action litigation are
recorded as a deduction of cost if the fund still owns the applicable securities
on
13
<Page>
payment date. If the Fund no longer owns the applicable securities, the proceeds
are recorded as realized gains.
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.
DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders are recorded on ex-date. Net realized capital
gains, if any, are distributed at least annually.
NOTE 3. FEDERAL TAX INFORMATION
Unrealized appreciation and depreciation at March 31, 2005, based on cost of
investments for federal income tax purposes was:
<Table>
Unrealized appreciation $ 127,025,579
Unrealized depreciation (32,164,945)
--------------
Net unrealized appreciation $ 94,860,634
</Table>
The following capital loss carryforwards, determined as of September 30, 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 EXPIRATION CAPITAL LOSS CARRYFORWARD
- ----------------------------------------------------
2008 $ 22,583,899
2009 201,991,560
2011 253,937,044
2012 5,529,590
-------------
$ 484,042,093
</Table>
Of these capital loss carryforwards, $219,806,550 ($22,583,899 expiring 09/30/08
and $197,222,651 expiring 09/30/09 and $4,768,909 expiring 09/30/09) were
obtained upon the Fund's mergers with Liberty Growth Stock Fund and Stein Roe
Focus Fund, respectively.
Utilization of Liberty Growth Stock Fund's and Stein Roe Focus Fund's losses
could be subject to limitations imposed by the Internal Revenue Code.
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 $500 million 0.60%
$500 million to $1 billion 0.55%
$1 billion to $2 billion 0.50%
Over $2 billion 0.45%
</Table>
For the six months ended March 31, 2005, the Fund's annualized effective
investment advisory fee rate was 0.59%.
ADMINISTRATION FEE
Columbia provides administrative and other services to the Fund for a monthly
administration 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 $500 million 0.150%
Next $500 million 0.125%
Next $500 million 0.100%
Next $500 million 0.075%
Over $2 billion 0.050%
</Table>
For the six months ended March 31, 2005, the Fund's annualized effective
administration fee rate was 0.14%.
PRICING AND BOOKKEEPING FEES
Columbia is responsible for providing pricing and bookkeeping services to the
Fund under a pricing and bookkeeping agreement. Under a separate agreement
14
<Page>
(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 March 31, 2005, the annualized effective pricing and
bookkeeping fee rate for the Fund, inclusive of out-of-pocket expenses, was
0.026%.
TRANSFER AGENT FEE
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 per class. The Transfer Agent also receives
reimbursement for certain out-of-pocket expenses.
The Transfer Agent has voluntarily agreed to waive a portion of the Class Z
transfer agent fee so that such fee (exclusive of out-of-pocket expenses) will
not exceed 0.05% annually of the Class Z average daily net assets. The Transfer
Agent, at its discretion, may revise or discontinue this arrangement any time.
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 March 31,
2005, the Distributor has retained net underwriting discounts of $5,467 on sales
of the Fund's Class A shares and net CDSC fees of $717, $439,355 and $1,335 on
Class A, Class B and Class C share redemptions, respectively.
The Fund has adopted a 12b-1 plan (the "Plan") which allows the payment of a
monthly service fee to the Distributor at the annual rate of 0.25% of the
average daily net assets attributable to Class A, Class B and Class C shares of
the Fund. The Plan also requires the payment of a monthly distribution fee to
the Distributor at the annual rates of 0.10%, 0.75% and 0.75% of the average
daily net assets attributable to Class A, Class B and Class C shares of the
Fund, respectively. The Distributor has voluntarily agreed to waive a portion of
the Class A share distribution fee so that it will not exceed 0.05% annually of
Class A average daily net assets.
The CDSC and the fees received from the Plan are used principally as repayment
to the Distributor for amounts paid by the Distributor to dealers who sold such
shares.
CUSTODY CREDITS
The Fund has an agreement with its custodian bank under which custody fees may
be reduced by balance credits. These credits are recorded as a reduction of
total expenses on the Statement of Operations. 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. For
the six months ended March 31, 2005, there were no such credits.
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. The Board
of Trustees has 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 for the Chief Compliance Officer
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 March 31, 2005, the Fund paid $1,098 to
Columbia for such services. This amount is included in "Other expenses" on the
Statement of Operations.
15
<Page>
NOTE 5. PORTFOLIO INFORMATION
For the six months ended March 31, 2005, the cost of purchases and proceeds from
sales of securities, excluding short-term obligations, were $5,421,081 and
$80,842,798, respectively.
NOTE 6. 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 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 March 31, 2005 the Fund did not borrow under this
arrangement.
NOTE 7. DISCLOSURE OF SIGNIFICANT RISKS AND CONTINGENCIES
LEGAL PROCEEDINGS
On February 9, 2005, Columbia and the Distributor (collectively, the "Columbia
Group") entered into an Assurance of Discontinuance with the New York Attorney
General ("NYAG") (the "NYAG Settlement") and consented to the entry of a
cease-and-desist order by the Securities and Exchange Commission ("SEC") (the
"SEC Order"). The SEC Order and the NYAG Settlement are referred to collectively
as the "Settlements". The Settlements contain substantially the same terms and
conditions as outlined in the agreements in principle which 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 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 funds
management fees collectively by $32 million per year for five years, for a
projected total of $160 million in management fee reductions.
Pursuant to the procedures set forth in the SEC order, the $140 million in
settlement amounts described above will be distributed in accordance with a
distribution plan to be developed by an independent distribution consultant, who
is acceptable to the SEC staff and the Columbia Funds' independent trustees. The
distribution plan must be based on a methodology developed in consultation with
the Columbia Group and the Fund's independent trustees and not unacceptable to
the staff of the SEC. "At this time, the distribution plan is still under
development. As such, any gain to the fund or its shareholders can not currently
be determined."
As a result of these matters or any adverse publicity or other developments
resulting from them, there may be increased redemptions or reduced sales of fund
shares, which could increase transaction costs or operating expenses, or have
other adverse consequences for the funds.
A copy of the SEC Order is available on the SEC website at http://www.sec.gov. A
copy of the NYAG Settlement is available as part of the Bank of America
Corporation Form 8-K filing on February 10, 2005.
On January 11, 2005, a putative class action lawsuit was filed in federal
district court in Massachusetts against, among others, the Trustees of the Fund
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.
16
<Page>
In 2004, certain Columbia funds, advisers and affiliated entities were named as
defendants in certain purported shareholder class and derivative actions making
claims, including claims under the Investment Company and the Investment
Advisers Acts of 1940 and state law. The suits allege, inter alia, that the fees
and expenses paid by the funds are excessive and that the advisers and their
affiliates inappropriately used fund assets to distribute the funds and for
other improper purpose. On March 2, 2005, the actions were consolidated in the
Massachusetts federal court as IN RE COLUMBIA ENTITIES LITIGATION. The
plaintiffs are expected to file a consolidated amended complaint in June 2005.
The Fund and the other defendants to these actions, including Columbia and
various of its affiliates, certain other mutual funds advised by Columbia and
its affiliates, and various directors of such funds, have denied these
allegations and are contesting the plaintiffs' claims. These proceedings are
ongoing, however, based on currently available information, Columbia believes
that these lawsuits are without merit, that the likelihood they will have a
material adverse impact on any fund is remote, and that the lawsuits are not
likely to materially affect its ability to provide investment management
services to its clients, including the Fund.
In connection with events described in detail above, various parties have filed
suit against certain funds, their Boards, FleetBoston Financial Corporation and
its affiliated entities and/or Bank of America Corporation and its affiliated
entities. More than 300 cases including those filed against entities
unaffiliated with the funds, their Boards, FleetBoston Financial Corporation and
its affiliated entities and/or Bank of America Corporation and its affiliated
entities have been transferred to the Federal District Court in Maryland and
consolidated in a multi-district proceeding (the "MDL"). On March 21, 2005
purported class action plaintiffs filed suit in Massachusetts state court
alleging that the conduct, including market timing, entitles Class B
shareholders in certain Columbia funds to an exemption from contingent deferred
sales charges upon early redemption (the "CDSC Lawsuit"). The CDSC Lawsuit has
been removed to federal court in Massachusetts and the federal Judicial Panel
has conditionally ordered its transfer to the MDL. The MDL is ongoing.
Accordingly, an estimate of the financial impact of this litigation on any Fund,
if any, can not currently be made.
For the six months ended March 31, 2005, Columbia has assumed $7,673 of legal,
consulting services and Trustees' fees incurred by the Fund in connection with
these matters.
NOTE 8. OTHER
During the six months ended March 31, 2005, the Fund sold shares of various
securities due to trading errors. The positions were subsequently repurchased at
a loss of $19,656 and the Fund has been reimbursed by Columbia.
17
<Page>
FINANCIAL HIGHLIGHTS
COLUMBIA GROWTH STOCK FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<Table>
<Caption>
(UNAUDITED)
SIX MONTHS ENDED PERIOD ENDED
MARCH 31, YEAR ENDED SEPTEMBER 30, SEPTEMBER 30,
CLASS A SHARES 2005 2004 2003 2002(a)
- --------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.32 $ 10.36 $ 8.83 $ 9.98
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b) 0.03(c) (0.08) (0.05) (0.01)
Net realized and unrealized gain (loss) on
investments 0.35 0.04 1.58 (1.14)
------------- ------------- ------------- -------------
Total from Investment Operations 0.38 (0.04) 1.53 (1.15)
NET ASSET VALUE, END OF PERIOD $ 10.70 $ 10.32 $ 10.36 $ 8.83
Total return (d)(e) 3.68%(f) (0.39)% 17.33% (11.52)%(f)
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Operating expenses (g) 1.68%(h) 1.55% 1.54% 1.63%(h)
Interest expense --% --% --%(i) --%
Net expenses (g) 1.68%(h) 1.55% 1.54% 1.63%(h)
Net investment income (loss) (g) 0.51%(h) (0.68)% (0.53)% (0.41)%(h)
Waiver/reimbursement 0.05% 0.05% 0.05% 0.05%(h)
Portfolio turnover rate 1% 51% 108% 71%
Net assets, end of period (000's) $ 56,786 $ 66,142 $ 81,967 $ 81,442
</Table>
(a) Class A shares were initially offered on July 15, 2002. Per share data and
total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Net investment income per share reflects a special dividend which amounted
to $0.06 per share.
(d) Total return at net asset value assuming no initial sales charge or
contingent deferred sales charge.
(e) Had the Distributor not waived a portion of expenses, total return would
have been reduced.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
(i) Rounds to less than 0.01%.
18
<Page>
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<Table>
<Caption>
(UNAUDITED)
SIX MONTHS ENDED PERIOD ENDED
MARCH 31, YEAR ENDED SEPTEMBER 30, SEPTEMBER 30,
CLASS B SHARES 2005 2004 2003 2002(a)
- --------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.82 $ 9.93 $ 8.52 $ 9.65
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b) (0.01)(c) (0.15) (0.11) (0.02)
Net realized and unrealized gain (loss) on
investments 0.34 0.04 1.52 (1.11)
------------- ------------- ------------- -------------
Total from Investment Operations 0.33 (0.11) 1.41 (1.13)
NET ASSET VALUE, END OF PERIOD $ 10.15 $ 9.82 $ 9.93 $ 8.52
Total return (d) 3.36%(e) (1.11)% 16.55% (11.71)%(e)
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Operating expenses (f) 2.43%(g) 2.30% 2.24% 2.33%(g)
Interest expense -- -- --%(h) --
Net expenses (f) 2.43%(g) 2.30% 2.24% 2.33%(g)
Net investment loss (f) (0.22)%(g) (1.43)% (1.23)% (1.11)%(g)
Portfolio turnover rate 1%(e) 51% 108% 71%
Net assets, end of period (000's) $ 212,429 $ 245,137 $ 303,943 $ 306,561
</Table>
(a) Class B shares were initially offered on July 15, 2002. Per share data and
total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Net investment income per share reflects a special dividend which amounted
to $0.06 per share.
(d) Total return at net asset value assuming no contingent deferred sales
charge.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
(h) Rounds to less than 0.01%.
19
<Page>
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<Table>
<Caption>
(UNAUDITED)
SIX MONTHS ENDED PERIOD ENDED
MARCH 31, YEAR ENDED SEPTEMBER 30, SEPTEMBER 30,
CLASS C SHARES 2005 2004 2003 2002(a)
- --------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.82 $ 9.92 $ 8.52 $ 9.64
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b) (0.01)(c) (0.15) (0.11) (0.02)
Net realized and unrealized gain (loss) on
investments 0.33 0.05 1.51 (1.10)
------------- ------------- ------------- -------------
Total from Investment Operations 0.32 (0.10) 1.40 (1.12)
NET ASSET VALUE, END OF PERIOD $ 10.14 $ 9.82 $ 9.92 $ 8.52
Total return (d) 3.26%(e) (1.01)% 16.43% (11.62)%(e)
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Operating expenses (f) 2.38%(g) 2.25% 2.24% 2.33%(g)
Interest expense -- -- --%(h) --
Net expenses (f) 2.38%(g) 2.25% 2.24% 2.33%(g)
Net investment loss (f) (0.18)%(g) (1.39)% (1.23)% (1.11)%(g)
Portfolio turnover rate 1%(e) 51% 108% 71%
Net assets, end of period (000's) $ 17,157 $ 20,100 $ 27,938 $ 28,093
</Table>
(a) Class C shares were initially offered on July 15, 2002. Per share data and
total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Net investment income per share reflects a special dividend which amounted
to $0.06 per share.
(d) Total return at net asset value assuming no contingent deferred sales
charge.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(g) Annualized.
(h) Rounds to less than 0.01%.
20
<Page>
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<Table>
<Caption>
(UNAUDITED)
SIX MONTHS ENDED
MARCH 31, YEAR ENDED SEPTEMBER 30,
CLASS Z SHARES 2005 2004 2003(a) 2002(a)(b) 2001(a) 2000(a)
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
BEGINNING OF PERIOD $ 8.35 $ 8.32 $ 7.05 $ 9.45 $ 19.89 $ 15.73
INCOME FROM INVESTMENT
OPERATIONS:
Net investment
income (loss) (c) 0.06(d) --(e) --(e) 0.01(f) (0.01)(f) (0.08)(f)
Net realized and unrealized
gain (loss) on investments 0.28 0.03 1.27 (2.41) (7.77) 5.39
--------- ---------- ---------- ---------- ---------- -----------
Total from Investment
Operations 0.34 0.03 1.27 (2.40) (7.78) 5.31
LESS DISTRIBUTIONS DECLARED
TO SHAREHOLDERS:
From net realized gains -- -- -- -- (2.66) (1.15)
NET ASSET VALUE, END OF PERIOD $ 8.69 $ 8.35 $ 8.32 $ 7.05 $ 9.45 $ 19.89
Total return (g) 4.07%(h)(i) 0.36%(i) 17.96%(i) (25.34)%(i) (43.48)% 35.04%
RATIOS TO AVERAGE NET ASSETS/
SUPPLEMENTAL DATA:
Operating expenses (j) 0.92%(k) 0.89% 1.00% 0.88%(f) 0.95%(f) 0.95%(f)
Interest expense -- -- --%(l) -- -- --
Net expenses (j) 0.92%(k) 0.89% 1.00% 0.88%(f) 0.95%(f) 0.95%(f)
Net investment
income (loss) (j) 1.27%(k) (0.02)% 0.01% 0.08%(f) (0.05)%(f) (0.44)%(f)
Waiver/reimbursement 0.05%(k) 0.05% 0.06% 0.01% -- --
Portfolio turnover rate 1%(h) 51% 108% 71% 73%(m) 74%(m)
Net assets, end of
period (000's) $ 353,588 $ 359,891 $ 384,861 $ 360,240 $ 551,474 $ 1,083,271
</Table>
(a) Per share data has been restated to reflect a 3-for-1 share split effective
July 25, 2003.
(b) On July 15, 2002, the Stein Roe Growth Stock Fund was redesignated Liberty
Growth Stock Fund, Class Z shares.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Net investment income per share reflects a special dividend which amounted
to $0.06 per share.
(e) Rounds to less than $0.01 per share.
(f) Per share amounts and ratios reflect income and expenses inclusive of the
Fund's proportionate share of the income and expenses of the SR&F Growth
Stock Portfolio prior to the termination of their master/feeder fund
structure on July 12, 2002.
(g) Total return at net asset value assuming all distributions reinvested.
(h) Not annualized.
(i) Had the Investment Advisor/Transfer Agent not waived a portion of expenses,
total return would have been reduced.
(j) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(k) Annualized.
(l) Round to less than 0.01%.
(m) Portfolio turnover rate disclosed is for the SR&F Growth Stock Portfolio.
21
<Page>
BOARD CONSIDERATION AND APPROVAL OF INVESTMENT ADVISORY AGREEMENT
COLUMBIA GROWTH STOCK FUND
Section 15(c) of the Investment Company Act of 1940 (the "1940 Act") requires
that the Board of Trustees/Directors (the "Board") of the Columbia Funds (the
"Funds"), including a majority of the Trustees and Directors (collectively, the
"Trustees") who are not "interested persons" of the Trusts, as defined in the
1940 Act (the "Independent Trustees"), annually review and approve the terms of
the Funds' investment advisory agreements. During the most recent six months
covered by this report, the Board reviewed and approved the management contracts
("Advisory Agreements") with Columbia Management Advisors, Inc. ("CMA") for the
Fund.
At meetings held on September 23, 2004 and October 12, 2004, the Advisory Fees
and Expenses Committee (the "Committee") of the Board considered the factors
described below relating to the selection of CMA and the approval of the
Advisory Agreement. At a meeting held on October 13, 2004, the Board, including
the Independent Trustees (who were advised by their independent legal counsel),
considered these factors and reached the conclusions described below.
NATURE, EXTENT AND QUALITY OF SERVICES
The Board considered information regarding the nature, extent and quality of
services that CMA provides to the Fund under the Advisory Agreement. CMA
provided the most recent investment adviser registration form ("Form ADV") and
code of ethics for CMA to the Board. The Board reviewed information on the
status of Securities and Exchange Commission ("SEC") and New York Attorney
General ("NYAG") proceedings against CMA and certain of its affiliates,
including the agreement in principle entered into with the SEC and the NYAG on
March 15, 2004 to settle civil complaints filed by the SEC and the NYAG relating
to trading activity in mutual fund shares.(1)
The Board evaluated the ability of CMA, including its resources, reputation and
other attributes, to attract and retain highly qualified research, advisory and
supervisory investment professionals. The Board considered information regarding
CMA's compensation program for its personnel involved in the management of the
Fund.
Based on these considerations and other factors, including those referenced
below, the Board concluded that they were generally satisfied with the nature,
extent and quality of the investment advisory services provided to the Fund by
CMA.
FUND PERFORMANCE AND EXPENSES
CMA provided the Board with relative performance and expense information for the
Fund in a report prepared by Lipper Inc. ("Lipper") an independent provider of
investment company data. The Board considered the total return performance
information, which included the ranking of the Fund within a performance
universe made up of funds with the same Lipper investment classification and
objective (the "Performance Universe") by total return for one-year, three-year,
five-year, ten-year or life of fund periods, as applicable. They also considered
the Fund's performance in comparison to the performance results of a group (the
"Performance Peer Group") of funds selected by Lipper based on similarities in
fund type (e.g. open-end), investment classification and objective, asset size,
load type and 12b-1/service fees and other expense features, and to the
performance results of the Fund's benchmark index. The Board reviewed a
description of Lipper's methodology for selecting the mutual funds in the Fund's
Performance Peer Group and Performance Universe.
The Board considered statistical information regarding the Fund's total expenses
and certain components thereof, including management fees (both actual
management fees based on expenses for advisory and administrative fees including
any reductions for fee waivers and expense reimbursements as well as contractual
management fees that are computed for a hypothetical level of assets), actual
non-management expenses, and fee waivers/caps and expense reimbursements. They
also considered comparisons of these expenses to the expense information for
funds within a group (the "Expense Peer Group") selected by Lipper based on
similarities in fund type (e.g. open-end), investment classification and
objective, asset size, load type and 12b-1/service fees and other expense
features (but which, unlike the Performance Peer Group, may include funds with
several different investment classifications and objectives) and an expense
universe ("Expense Universe") selected by Lipper based on the criteria for
determining the Expense Peer Group other than asset size. The expense
(1) On February 9, 2005, CMA and its affiliate, Columbia Funds Distributor,
Inc., entered into settlement agreements with the SEC and the NYAG that
contain substantially the terms outlined in the agreements in principle.
22
<Page>
information in the Lipper report took into account all existing fee waivers and
expense reimbursements as well as all voluntary advisory fee reductions
applicable to certain Funds that were being proposed by management in order to
reduce the aggregate advisory fees received from mutual funds advised by CMA and
Banc of America Capital Management, LLC ("BACAP") by $32 million per year for
five years as contemplated by the agreement in principle with the NYAG.
The Committee also considered the projected impact on expenses of these Funds
resulting from the overall cost reductions that management anticipated would
result from the proposed shift to a common group of service providers for
transfer agency, fund accounting and custody services for mutual funds advised
by Bank of America affiliates.
The Boards also considered information is the Lipper report that ranked each
Funds based on (i) each Fund's one-year performance and actual advisory fees,
(ii) each Fund's one-year performance and total expenses and (iii) each Fund's
3-year performance and total expenses.
Based on these comparisons and expense and performance rankings of the Fund in
the Lipper Report, CMA determined an overall score for the Fund. The Committee
and the Board also considered projected savings to the Fund that would result
from certain modifications in soft dollar arrangements.
The Committee also considered more detailed information relating to certain
Funds that were highlighted for additional review based upon the fact that they
ranked poorly in terms of overall expense or management fees, maintained poor
performance or demonstrated a combination of below average to poor performance
while maintaining below average or poor expense rankings. At its September 23,
2004 meeting, the Committee discussed these Funds with management and in
executive session. The Committee requested additional information from
management regarding the cause(s) of the below-average relative performance of
these Funds, any remedial actions management recommended to improve performance
and the general standards for review of portfolio manager performance. At its
October 12, 2004 meeting, the Committee considered additional information
provided by management regarding these Funds. The Board also considered
management's proposal to merge or liquidate some of these Funds.
Based on these considerations and other factors, the Board concluded that the
overall performance and expense results supported by the approval of the
Advisory Agreements for each Fund.
INVESTMENT ADVISORY FEE RATES
The Board reviewed and considered the proposed contractual investment advisory
fee rates (the "Advisory Agreement Rates") payable by the Funds to CMA for
investment advisory services. In addition, the Board reviewed and considered the
existing and proposed fee waiver and reimbursement arrangements applicable to
the Advisory Agreement Rates and considered the Advisory Agreement Rates after
taking the fee waivers and reimbursements into account (the "Net Advisory
Rates"). At previous meetings, the Committee had separately considered
management's proposal to reduce annual investment advisory fees for certain
Funds under the NYAG agreement in principle and the impact of these reductions
on each affected Fund. Additionally, the Board considered information comparing
the Advisory Agreement Rates and Net Advisory Rates (both on a stand-alone basis
and on a combined basis with the Funds' administration fee rates) with those of
the other funds in the Expense Peer Group. The Board concluded that the Advisory
Agreement Rates and Net Advisory Rates represented reasonable compensation to
CMA, in light of the nature, extent and quality of the services provided to the
Funds, the fees paid and expenses borne by comparable funds and the costs that
CMA incurs in providing these services to the Funds.
PROFITABILITY
The Board considered a detailed profitability analysis of CMA based on 2003
financial statements, adjusted to take into account advisory fee reductions
implemented in November 2003 and proposed reductions under the NYAG proposed
settlement. The Board concluded that, in light of the costs of providing
investment management and other services to the Funds, the profits and other
ancillary benefits that CMA and its affiliates received for providing these
services to the Funds were not unreasonable.
23
<Page>
ECONOMIES OF SCALE
In evaluating potential economies of scale, the Board considered CMA's proposal
to implement a standardized breakpoint schedule for combined advisory and
administrative fees for the majority of the funds of the same general asset type
within the Columbia Funds complex (other than index and closed-end funds). The
Board noted that the standardization of the breakpoints would not result in a
fee increase for any Fund. The Board concluded that any actual or potential
economies of scale are, or will be, shared fairly with Fund shareholders,
including most particularly through Advisory Agreement Rate breakpoints at
current and reasonably foreseeable asset levels.
INFORMATION ABOUT SERVICES TO OTHER CLIENTS
In evaluating the proposed fee reductions under the NYAG agreement in principle,
the Board considered information regarding the advisory fee rates charged by
BACAP for the Nations Funds. Members of the Committee and the Board had also
separately reviewed advisory fee rates for variable insurance product funds
advised by CMA. This information assisted the Board in assessing the
reasonableness of fees paid under the Advisory Agreements in light of the
nature, extent and quality of services provided under those agreements.
OTHER BENEFITS TO CMA
The Board considered information regarding potential "fall-out" or ancillary
benefits received by CMA and its affiliates as a result of their relationship
with the Funds. These benefits could include benefits directly attributable to
the relationship of CMA with the Funds (such as soft dollar credits) and
benefits potentially derived from an increase in the business of CMA as a result
of their relationship with the Funds (such as the ability to market to
shareholders other financial products offered by CMA and its affiliates).
OTHER FACTORS AND BROADER REVIEW
The Board reviews detailed materials provided by CMA annually as part of the
approval process under Section 15(c) of the 1940 Act. The Board also regularly
reviews and assesses the quality of the services that the Funds receive
throughout the year. In this regard, the Board reviews information provided by
CMA at their regular meetings, including, among other things, a detailed
portfolio review, and detailed fund performance reports. In addition, the Board
interviews the heads of each investment area at each regular meeting of the
Board and selected portfolio managers of the Funds at various times throughout
the year. After considering the above-described factors and based on the
deliberations and their evaluation of the information provided to them, the
Board concluded that re-approval of the Advisory Agreements for each of the
Funds was in the best interest of the Funds and their shareholders. Accordingly,
the Board unanimously approved the Advisory Agreements.
24
<Page>
IMPORTANT INFORMATION ABOUT THIS REPORT
COLUMBIA GROWTH STOCK FUND
TRANSFER AGENT
Columbia Funds Services, Inc.
P.O. Box 8081
Boston MA 02266-8081
800-345-6611
DISTRIBUTOR
Columbia Funds Distributor, Inc.
One Financial Center
Boston MA 02111
INVESTMENT ADVISOR
Columbia Management Advisors, Inc.
100 Federal Street
Boston MA 02110
The fund mails one shareholder report to each shareholder address. If you would
like more than one report, please call shareholder services at 800-345-6611 and
additional reports will be sent to you.
This report has been prepared for shareholders of Columbia Growth Stock Fund.
This report may also be used as sales literature when preceded or accompanied by
the current prospectus which provides details of sales charges, investment
objectives and operating policies of the fund and with the most recent copy of
the Columbia Funds Performance Update.
A description of the 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.
25
<Page>
[GRAPHIC]
Help your fund reduce printing and postage costs! Elect to get your shareholder
reports by electronic delivery. With Columbia's eDelivery program, you receive
an e-mail message when your shareholder report becomes available online. If your
fund account is registered with Columbia Funds, you can sign up quickly and
easily on our website at www.columbiafunds.com.
Please note -- if you own your fund shares through a financial institution,
contact the institution to see if it offers electronic delivery. If you own your
fund shares through a retirement plan, electronic delivery may not be available
to you.
COLUMBIA GROWTH STOCK FUND SEMIANNUAL REPORT, MARCH 31, 2005 PRSRT STD
U.S. POSTAGE
PAID
HOLLISTON, MA
PERMIT NO. 20
[COLUMBIA MANAGEMENT(R) LOGO]
(C)2005 COLUMBIA FUNDS DISTRIBUTOR, INC.
ONE FINANCIAL CENTER, BOSTON, MA 02111-2621
800.345.6611 www.columbiafunds.com
755-03/044V-0405 (05/05) 05/5592
<Page>
[GRAPHIC]
COLUMBIA YOUNG INVESTOR FUND
SEMIANNUAL REPORT
MARCH 31, 2005
<Page>
TABLE OF CONTENTS
<Table>
Fund Profile 1
Performance Information 2
Understanding Your Expenses 3
Economic Update 4
Portfolio Managers' Report 5
Financial Statements 7
Investment Portfolio 8
Statement of Assets and Liabilities 14
Statement of Operations 15
Statements of Changes in Net Assets 16
Notes to Financial Statements 17
Financial Highlights 22
Board Consideration and Approval of
Investment Advisory Agreement 26
Activity Pages I
Columbia Funds 29
Important Information
About This Report 31
</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 YOUNG INVESTOR FUND
[PHOTO OF CHRISTOPHER WILSON]
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 help 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, we recently announced plans to consolidate the transfer agency of all
of our funds and consolidate custodial services, each under a single vendor. We
have also reduced management fees for many funds as part of our settlement
agreement (See Note 7 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 better 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 YOUNG INVESTOR 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.
SECTORS AS OF 03/31/05 (%)
<Table>
Financials 19.5
Information technology 18.4
Health care 14.4
Consumer discretionary 12.7
Energy 9.1
Consumer staples 8.2
Industrials 8.0
Materials 5.3
Telecommunication services 2.8
Utilities 1.6
</Table>
TOP 10 HOLDINGS AS OF 03/31/05 (%)
<Table>
General Electric 3.3
Exxon Mobil 3.0
Wells Fargo 2.0
Citigroup 1.9
Microsoft 1.7
Johnson & Johnson 1.6
Medtronic 1.4
Novartis 1.3
Procter & Gamble 1.2
Lincare Holdings 1.2
</Table>
Sector breakdown is calculated as a percentage of total investments excluding
short-term investments. 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 MARCH 31, 2005, THE FUND'S CLASS A SHARES
RETURNED 7.95% WITHOUT SALES CHARGE.
- - THE FUND'S PERFORMANCE PUT IT AHEAD OF THE RUSSELL 3000 INDEX AND THE
MORNINGSTAR LARGE BLEND CATEGORY AVERAGE.
- - STOCKS IN THE CONSUMER DISCRETIONARY, ENERGY AND HEALTH CARE SECTORS MADE THE
LARGEST CONTRIBUTION TO PERFORMANCE.
<Table>
CLASS A SHARES 7.95%
RUSSELL 3000 INDEX 7.73%
</Table>
OBJECTIVE
Seeks long-term growth of capital
TOTAL NET ASSETS
$784.3 million
MANAGEMENT STYLE
[GRAPHIC]
1
<Page>
PERFORMANCE INFORMATION
COLUMBIA YOUNG INVESTOR FUND
[CHART]
VALUE OF A $10,000 INVESTMENT 04/01/95 - 03/31/05
<Table>
<Caption>
CLASS A SHARES CLASS A SHARES RUSSELL 3000
WITHOUT SALES CHARGE WITH SALES CHARGE INDEX
04/1/1995 $ 10,000 $ 9,425 $ 10,000
4/30/1995 $ 10,115 $ 9,533 $ 10,261
5/31/1995 $ 10,283 $ 9,692 $ 10,633
6/30/1995 $ 11,148 $ 10,507 $ 10,941
7/31/1995 $ 11,819 $ 11,139 $ 11,381
8/31/1995 $ 11,969 $ 11,281 $ 11,482
9/30/1995 $ 12,613 $ 11,888 $ 11,926
10/31/1995 $ 12,357 $ 11,646 $ 11,824
11/30/1995 $ 13,062 $ 12,311 $ 12,349
12/31/1995 $ 13,151 $ 12,395 $ 12,550
1/31/1996 $ 13,665 $ 12,880 $ 12,914
2/29/1996 $ 13,849 $ 13,052 $ 13,105
3/31/1996 $ 14,426 $ 13,596 $ 13,237
4/30/1996 $ 15,398 $ 14,513 $ 13,489
5/31/1996 $ 16,140 $ 15,212 $ 13,834
6/30/1996 $ 16,452 $ 15,506 $ 13,790
7/31/1996 $ 15,361 $ 14,478 $ 13,069
8/31/1996 $ 16,049 $ 15,127 $ 13,465
9/30/1996 $ 17,094 $ 16,111 $ 14,197
10/31/1996 $ 17,332 $ 16,335 $ 14,457
11/30/1996 $ 18,011 $ 16,976 $ 15,476
12/31/1996 $ 17,766 $ 16,745 $ 15,290
1/31/1997 $ 18,592 $ 17,523 $ 16,136
2/28/1997 $ 18,109 $ 17,068 $ 16,154
3/31/1997 $ 16,903 $ 15,931 $ 15,424
4/30/1997 $ 17,662 $ 16,646 $ 16,184
5/31/1997 $ 19,029 $ 17,935 $ 17,289
6/30/1997 $ 19,940 $ 18,794 $ 18,009
7/31/1997 $ 21,326 $ 20,100 $ 19,421
8/31/1997 $ 20,595 $ 19,411 $ 18,632
9/30/1997 $ 21,602 $ 20,360 $ 19,688
10/31/1997 $ 20,975 $ 19,769 $ 19,027
11/30/1997 $ 21,498 $ 20,262 $ 19,756
12/31/1997 $ 22,435 $ 21,145 $ 20,151
1/31/1998 $ 22,570 $ 21,272 $ 20,256
2/28/1998 $ 24,380 $ 22,978 $ 21,704
3/31/1998 $ 25,323 $ 23,867 $ 22,780
4/30/1998 $ 25,612 $ 24,139 $ 23,004
5/31/1998 $ 24,736 $ 23,314 $ 22,435
6/30/1998 $ 26,151 $ 24,647 $ 23,194
7/31/1998 $ 25,293 $ 23,839 $ 22,772
8/31/1998 $ 20,601 $ 19,417 $ 19,283
9/30/1998 $ 21,843 $ 20,587 $ 20,598
10/31/1998 $ 23,346 $ 22,004 $ 22,161
11/30/1998 $ 24,724 $ 23,302 $ 23,518
12/31/1998 $ 26,393 $ 24,875 $ 25,013
1/31/1999 $ 27,617 $ 26,029 $ 25,864
2/28/1999 $ 26,640 $ 25,108 $ 24,948
3/31/1999 $ 28,723 $ 27,071 $ 25,864
4/30/1999 $ 29,452 $ 27,759 $ 27,030
5/31/1999 $ 28,436 $ 26,801 $ 26,517
6/30/1999 $ 29,827 $ 28,112 $ 27,856
7/31/1999 $ 28,249 $ 26,625 $ 27,012
8/31/1999 $ 27,675 $ 26,084 $ 26,704
9/30/1999 $ 27,064 $ 25,508 $ 26,020
10/31/1999 $ 29,294 $ 27,610 $ 27,652
11/30/1999 $ 31,148 $ 29,357 $ 28,426
12/31/1999 $ 34,752 $ 32,754 $ 30,240
1/31/2000 $ 33,946 $ 31,994 $ 29,054
2/29/2000 $ 37,055 $ 34,925 $ 29,324
3/31/2000 $ 38,152 $ 35,958 $ 31,621
4/30/2000 $ 35,005 $ 32,992 $ 30,508
5/31/2000 $ 31,774 $ 29,947 $ 29,650
6/30/2000 $ 34,713 $ 32,717 $ 30,528
7/31/2000 $ 34,143 $ 32,180 $ 29,988
8/31/2000 $ 37,561 $ 35,401 $ 32,213
9/30/2000 $ 35,807 $ 33,748 $ 30,753
10/31/2000 $ 34,622 $ 32,631 $ 30,317
11/30/2000 $ 30,277 $ 28,536 $ 27,522
12/31/2000 $ 31,261 $ 29,463 $ 27,984
1/31/2001 $ 32,805 $ 30,919 $ 28,941
2/28/2001 $ 29,429 $ 27,737 $ 26,296
3/31/2001 $ 27,155 $ 25,593 $ 24,581
4/30/2001 $ 29,729 $ 28,019 $ 26,553
5/31/2001 $ 29,544 $ 27,846 $ 26,765
6/30/2001 $ 28,457 $ 26,821 $ 26,273
7/31/2001 $ 26,593 $ 25,064 $ 25,839
8/31/2001 $ 24,798 $ 23,372 $ 24,315
9/30/2001 $ 21,458 $ 20,224 $ 22,170
10/31/2001 $ 22,190 $ 20,914 $ 22,687
11/30/2001 $ 24,169 $ 22,779 $ 24,434
12/31/2001 $ 24,386 $ 22,984 $ 24,778
1/31/2002 $ 23,723 $ 22,359 $ 24,468
2/28/2002 $ 23,095 $ 21,767 $ 23,969
3/31/2002 $ 24,466 $ 23,060 $ 25,019
4/30/2002 $ 22,979 $ 21,657 $ 23,705
5/31/2002 $ 22,521 $ 21,226 $ 23,431
6/30/2002 $ 20,909 $ 19,707 $ 21,744
7/31/2002 $ 19,077 $ 17,980 $ 20,015
8/31/2002 $ 18,978 $ 17,887 $ 20,109
9/30/2002 $ 16,985 $ 16,009 $ 17,996
10/31/2002 $ 18,361 $ 17,305 $ 19,428
11/30/2002 $ 19,736 $ 18,602 $ 20,603
12/31/2002 $ 18,400 $ 17,342 $ 19,439
1/31/2003 $ 18,021 $ 16,985 $ 18,963
2/28/2003 $ 17,742 $ 16,722 $ 18,650
3/31/2003 $ 17,902 $ 16,872 $ 18,846
4/30/2003 $ 19,276 $ 18,168 $ 20,386
5/31/2003 $ 20,292 $ 19,126 $ 21,617
6/30/2003 $ 20,351 $ 19,181 $ 21,909
7/31/2003 $ 20,789 $ 19,593 $ 22,410
8/31/2003 $ 21,427 $ 20,195 $ 22,908
9/30/2003 $ 20,870 $ 19,670 $ 22,658
10/31/2003 $ 22,166 $ 20,891 $ 24,029
11/30/2003 $ 22,485 $ 21,192 $ 24,361
12/31/2003 $ 23,423 $ 22,076 $ 25,474
1/31/2004 $ 23,683 $ 22,321 $ 26,006
2/29/2004 $ 23,841 $ 22,470 $ 26,358
3/31/2004 $ 23,562 $ 22,208 $ 26,044
4/30/2004 $ 23,063 $ 21,737 $ 25,505
5/31/2004 $ 23,501 $ 22,150 $ 25,875
6/30/2004 $ 23,919 $ 22,544 $ 26,389
7/31/2004 $ 23,063 $ 21,737 $ 25,392
8/31/2004 $ 22,943 $ 21,624 $ 25,496
9/30/2004 $ 23,283 $ 21,944 $ 25,889
10/31/2004 $ 23,483 $ 22,133 $ 26,313
11/30/2004 $ 24,519 $ 23,109 $ 27,537
12/31/2004 $ 25,394 $ 23,934 $ 28,517
1/31/2005 $ 24,792 $ 23,366 $ 27,759
2/28/2005 $ 25,494 $ 24,028 $ 28,369
03/31/2005 $ 25,141 $ 23,698 $ 27,892
</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 Russell
3000 Index is an unmanaged index that tracks the performance of 3,000 of the
largest US companies, based on market capitalization. Unlike the fund, indices
are not investments, do not incur fees or expenses and are not professionally
managed. It is not possible to invest directly in an index. Securities in the
fund may not match those in an index.
WHAT DOES AVERAGE ANNUAL TOTAL RETURN MEAN?
The average annual total return is given for periods greater than one year.
Calculated as a percentage, this figure represents the average yearly return for
the time period specified. The chart below includes average annual returns for
the following periods: one year, five years and ten years. Returns for periods
less than one year are known as cumulative returns. A cumulative return is the
percentage that the fund has grown or shrunk in the number of months indicated.
AVERAGE ANNUAL TOTAL RETURN AS OF 03/31/05 (%)
<Table>
<Caption>
SHARE CLASS A B C Z
- --------------------------------------------------------------------------------------------
INCEPTION 07/29/02 07/29/02 07/29/02 04/29/94
- --------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- --------------------------------------------------------------------------------------------
6-MONTH (CUMULATIVE) 7.95 1.76 7.57 2.57 7.56 6.56 8.12
1-YEAR 6.67 0.54 5.91 0.91 5.90 4.90 6.75
5-YEAR -8.01 -9.09 -8.36 -8.68 -8.34 -8.34 -8.01
10-YEAR 9.66 9.01 9.45 9.45 9.46 9.46 9.66
</Table>
THE "WITH SALES CHARGE" RETURNS INCLUDE THE MAXIMUM INITIAL SALES CHARGE OF
5.75% FOR CLASS A SHARES, MAXIMUM CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR
CLASS B SHARES AND 1.00% FOR CLASS C 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.
Class A, B and C shares (newer class shares) performance information includes
returns for the fund's class Z shares (the oldest existing fund class) for
periods prior to the inception of the newer class shares. The newer class shares
returns are not restated to reflect any expense differential (e.g., Rule 12b-1
fees) between class Z shares and the newer class shares. Had the expense
differential been reflected, the returns for the periods prior to the inception
of the newer class shares would have been lower. Classes A, B and C shares were
initially offered July 29, 2002 and class Z shares were initially offered April
29, 1994.
[SIDENOTE]
PERFORMANCE OF A $10,000 INVESTMENT 04/01/95 - 03/31/05 ($)
<Table>
<Caption>
SALES CHARGE: WITHOUT WITH
- --------------------------------------------
Class A 25,141 23,698
Class B 24,667 24,667
Class C 24,687 24,687
Class Z 25,138 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 YOUNG INVESTOR FUND
As a fund shareholder, you incur two types of costs. There are transaction
costs, which generally include sales charges on purchases and may include
redemption or exchange fees. There are also ongoing costs, which generally
include investment advisory, 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
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
10/01/04 - 03/31/05
<Table>
<Caption>
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
CLASS A 1,000.00 1,000.00 1,079.43 1,018.20 7.00 6.79 1.35
CLASS B 1,000.00 1,000.00 1,075.64 1,014.71 10.61 10.30 2.05
CLASS C 1,000.00 1,000.00 1,075.59 1,014.71 10.61 10.30 2.05
CLASS Z 1,000.00 1,000.00 1,086.81 1,024.93 5.88 5.70 1.13
</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 class A, B, C
and Z shares transfer agent expenses, total return would have been reduced for
class A, B, C and Z shares.
Had the distributor not waived a portion of class A share distribution fees,
total return would have been reduced for class A shares.
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 funds, it is important to note that hypothetical examples are
meant to highlight the continuing cost of investing in a fund and do not reflect
any transactional costs, such as sales charges or redemption or exchange fees.
[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 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
3
<Page>
ECONOMIC UPDATE
COLUMBIA YOUNG INVESTOR FUND
During the six-month period that began October 1, 2004, and ended March 31,
2005, the US economy grew at a healthy pace as household and business spending
expanded. Fourth quarter gross domestic product (GDP) growth was originally
estimated at 3.1%. However, it was revised to 3.8% once it was discovered that
the trade gap appeared to have been overstated. In fact, nearly all sectors that
contribute to US GDP were revised higher. First quarter GDP was reported at
3.1%--lower than most economists expected it to be, but still slightly above the
economy's long-term growth rate of 3.0%.
Job growth dominated US economic news as the pace of new job creation picked up
and more than two million jobs were created in 2004. In 2005, both January and
March job additions came in somewhat below expectations, putting an end to the
rise in consumer confidence readings. Yet, consumers overall remained
significantly more optimistic about the prospects for the economy and about
their own employment than they were a year ago.
STOCKS PICK UP, THEN LOSE MOMENTUM
Stock market performance picked up as employment news improved in 2004 and
uncertainty surrounding the US presidential election was resolved. But investors
turned cautious early in 2005 at the possibility of higher interest rates,
higher inflation, sharply higher energy prices and subdued corporate profit
growth and the stock market lost momentum. Nevertheless, the stock market
delivered solid gains for the period. The S&P 500 Index returned 6.88%.
Small-cap stocks did better than large-cap stocks, as measured by the Russell
2000 Index, which gained 8.00% over the same period. Energy and utility stocks
were the period's strongest performers.
BOND RETURNS SLIDE LATE IN THE PERIOD
In the first half of the period, the US bond market was on track to deliver
solid returns. Bond investors responded favorably to short-term interest rate
hikes by the Federal Reserve Board (the Fed), because they indicated that the
Fed was on top of inflation. Yields on intermediate and long-term bonds edged
lower--and prices rose. However, halfway through the period, investors were
unsettled by Fed Chairman Greenspan's comments that the movement of short and
long-term rates in opposite directions represented a conundrum for the markets,
and bonds reversed course in the last six weeks of the period. The Lehman
Brothers Aggregate Bond Index returned 0.47% for the period. Municipal bonds
outperformed taxable bonds, Treasury bonds outperformed corporate bonds and
high-yield bonds led the fixed income markets. The Merrill Lynch US High Yield,
Cash Pay Index returned 2.96%.
HIGHER SHORT-TERM INTEREST RATES
The Fed made good on its announced intentions to raise the federal funds rate, a
key short-term rate, in an effort to balance economic growth against
inflationary pressures. After four one-quarter percentage point increases during
this reporting period, the federal funds rate stood at 2.75%.(1) Last year the
Fed indicated that it would continue to raise short-term interest rates at a
measured pace. However, in its March meeting, the Fed hinted at the possibility
of a more aggressive pace in months to come.
(1) On May 3, 2005, the federal funds rate was raised to 3.0%.
[SIDENOTE]
SUMMARY
FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2005
- - BUOYED BY A MARKET RALLY IN THE FIRST HALF OF THE PERIOD, THE S&P 500 INDEX
RETURNED 6.88%. SMALL-CAP STOCKS DID EVEN BETTER, AS MEASURED BY THE RUSSELL
2000 INDEX.
<Table>
S&P 500 INDEX 6.88%
RUSSELL 2000 INDEX 8.00%
</Table>
- - DESPITE RISING INTEREST RATES, BONDS DELIVERED MODEST GAINS. THE LEHMAN
BROTHERS AGGREGATE BOND INDEX RETURNED 0.47%. HIGH-YIELD BONDS LED THE FIXED
INCOME MARKETS. THE MERRILL LYNCH HIGH YIELD, CASH PAY INDEX RETURNED 2.96%
<Table>
LEHMAN INDEX 0.47%
MERRILL LYNCH INDEX 2.96%
</Table>
The S&P 500 Index is an unmanaged index that tracks the performance of 500
widely held, large capitalization US stocks.
The Russell 2000 Index is an unmanaged index that tracks the performance of the
2,000 smallest of the 3,000 largest US companies based on market capitalization.
The Lehman Brothers Aggregate Bond Index is an unmanaged, market value-weighted
index that tracks the performance of fixed-rate, publicly placed,
dollar-denominated, non-convertible investment-grade debt issues.
The Merrill Lynch US High Yield, Cash Pay Index is an unmanaged index that
tracks the performance of non-investment grade corporate bonds.
4
<Page>
PORTFOLIO MANAGERS' REPORT
COLUMBIA YOUNG INVESTOR FUND
HOW DID THE FUND PERFORM?
During the six-month period ended March 31, 2005, the fund's class A shares
returned 7.95%. This return was calculated before the sales charge was deducted.
The fund beat the 7.73% return of the fund's benchmark, the Russell 3000 Index,
which measures the combined performance of small-, medium- and large-company
stocks. The fund also came out ahead of the 7.14% average return of its peer
group, the Morningstar Large Blend Category.(1) We maintained our strategy of
investing roughly one-third of the fund's assets in large growth stocks, one
third in large value stocks and the balance in small- and mid-size stocks.
Growth stocks have historically had superior revenue and earnings growth
prospects, while value stocks tend to be bargain priced.
WHY DID THE FUND PERFORM SO WELL DURING THE PERIOD?
Stocks in the consumer discretionary, energy and health care sectors were the
biggest contributors to returns. Consumer discretionary is a broad category that
includes all types of retail stores, media companies, hotels and restaurants.
Over the six-month period, the standout was Abercrombie & Fitch, a trendy
clothing retailer that targets teens and young adults. Strong sales helped the
company deliver earnings growth that outpaced the previous year's results. In
addition, Sears Roebuck received a nice boost after K-Mart (not in the
portfolio) announced it would buy the company. We decided to take profits,
selling the fund's stake in Sears.
HOW DID ENERGY AND HEALTH CARE STOCKS PERFORM?
You may have heard your parents talk about how the price of gasoline and home
heating oil have climbed this past year. That's because crude oil prices have
increased significantly as demand worldwide--especially in China and India--has
grown. While the jump in oil prices hurt consumers, it helped oil producers. The
fund benefited from sizable investments in Exxon Mobil and ConocoPhillips.
Health care results were mixed. Many large well-known pharmaceutical stocks,
such as Pfizer, declined as investors worried about upcoming patent expirations
and growing caution at the Food and Drug Administration. However, other
companies, such as Johnson & Johnson, did quite well. Johnson & Johnson
benefited from a smart acquisition and strong growth in its consumer products
business. Health insurers also rallied, as they continued to add new subscribers
and increase their profits. Medco Health Solutions, Coventry Health Care,
Lincare Holdings and Aetna all were top performers.
WHICH SECTORS WERE DISAPPOINTMENTS?
As the market moved higher, returns from financials seemed to stand still or
decline. Part of the problem was that investors were concerned about rising
interest rates. As interest rates move higher, fewer people take out new
mortgage loans, which hurts banks and other mortgage lenders. In addition,
higher interest rates reduce profit margins--the difference between what banks
pay on deposits and what they earn on existing loans. Insurance companies also
suffered as the government began investigating the industry's practices.
American International Group, a large global insurer, and UICI, a smaller
insurer, both detracted from returns. In addition, negative news related to
lawsuits hampered JP Morgan Chase, a large investment bank.
HOW DID THE FUND'S TECHNOLOGY STOCKS DO?
Tech stocks produced modest gains, but they were not as strong as other sectors.
Typically, technology does not do well when energy prices rise, so we weren't
surprised by this performance. In addition, the fund lost ground by not owning
Apple Computer, which posted huge gains thanks to the popularity of the iPod.
(1) (C) 2004, Morningstar, Inc. All rights reserved. The information contained
herein is the proprietary information of Morningstar, Inc., may not be
copied or redistributed for any purpose and may only be used for
noncommercial, personal purposes. The information contained herein is not
represented or warranted to be accurate, correct, complete or timely.
Morningstar, Inc. shall not be responsible for investment decisions, damages
or other losses resulting from the use of this information. Past performance
is no guarantee of future performance. Morningstar, Inc. has not granted
consent for it to be considered or deemed an "expert" under the Securities
Act of 1933. Morningstar Categories compare the performance of funds with
similar investment objectives and strategies.
[SIDENOTE]
NET ASSET VALUE PER SHARE AS OF 03/31/05 ($)
<Table>
Class A 12.55
Class B 12.37
Class C 12.38
Class Z 10.93
</Table>
DISTRIBUTIONS DECLARED PER SHARE 10/01/04 - 03/31/05 ($)
<Table>
Class A 0.06
Class B 0.00
Class C 0.00
Class Z 0.05
</Table>
HOLDINGS DISCUSSED IN THIS REPORT AS OF 03/31/05 (%)
<Table>
Abercrombie & Fitch 0.5
Exxon Mobil 3.0
ConocoPhillips 0.8
Pfizer 1.0
Johnson & Johnson 1.6
Medco Health Solutions 1.1
Coventry Health Care 1.1
Lincare Holdings 1.2
Aetna 0.3
American International Group 1.2
UICI 0.8
JP Morgan Chase 0.8
Adobe Systems 1.1
ASML Holding 0.9
Chiquita Brands International 0.8
</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>
Offsetting these losses were a few stellar performers. Adobe Systems climbed
amid continued strong sales growth in its desktop publishing business, driven in
part by the recent release of Adobe Acrobat Reader 7.0. Acrobat is a software
tool that allows you to read PDF (or portable document format) files on the
Internet. ASML Holding benefited from strong demand for its products and being
well positioned for next generation equipment. ASML is a leading manufacturer of
lithography machines used to manufacture the semiconductor chips that are the
brains behind most consumer electronics.
HOW WAS THE FUND POSITIONED AT THE END OF THE PERIOD?
The fund's asset allocation did not change: Investments were divided equally
among large-company value, large-company growth and small/ mid-size stocks.
Among large-company value stocks, we reduced the fund's investment in energy
stocks amid concerns that the sector had peaked. We also kept a below-average
stake in financials, which are susceptible to further interest rate increases.
We leaned toward less economically sensitive names with steadily growing
businesses by increasing the fund's investments in consumer staples--such as
food and beverage companies--and consumer products. On the large-company growth
side, we kept the fund's bias toward technology. We believe technology stocks
have the potential to lead the next phase of the market's cycle. In the small
and mid-cap portion of the portfolio, the fund invested in a variety of sectors.
Although outpacing large company stocks may become more difficult, we believe
small- and mid-size stocks have the potential to continue to deliver reasonable
returns for shareholders.
[PHOTO OF GREG MILLER]
/s/ Greg M. Miller
[PHOTO OF MICHAEL A. WELHOELTER]
/s/ Michael A. Welhoelter
[PHOTO OF PAUL A. BLAUSTEIN]
/s/ Paul A. Blaustein
Greg Miller, Michael A. Welhoelter, CFA, and Paul A. Blaustein, CFA lead the
team of portfolio managers who manage the portfolio of Columbia Young Investor
Fund. Mr. Miller and Mr. Welhoelter have been co-managing the fund since June
2003. Mr. Blaustein has been co-managing the fund since November 2003.
Effective April 1, 2005 Emil Gjester and Robert A. Unger began co-managing
Columbia Young Investor Fund, replacing Greg M. Miller, Michael A. Welhoelter
and Paul A. Blaustein. Mr. Gjester and Unger have been with the advisor and its
predecessors since 1996 and 1984, respectively.
Equity investments are affected by stock market fluctuations that occur in
response to economic and business developments.
Investments in small- and mid-cap stocks may present special risks. They tend to
be more volatile and may be less liquid than the stocks of larger companies.
Small-cap stocks often have narrower markets, limited financial resources and
tend to be more thinly traded than stocks of larger companies.
Value stocks are securities of companies that may have experienced adverse
business or industry developments or may be subject to special risks that have
caused the stocks to be out of favor. If the advisor's assessment of a company's
prospects is wrong, the price of its stock may not approach the value the
advisor has placed on It.
[SIDENOTE]
DID YOU KNOW?
Chiquita Brands International is top banana--and not just because more people
are eating this healthy fruit. It's because Chiquita's management team has made
some smart moves. The company, which produces fresh fruits and vegetables for
distribution in over 60 countries, emerged from bankruptcy in 2002. In an effort
to refocus on its core fresh produce business, Chiquita sold its canned
vegetable business the following year. In February 2005, Chiquita expanded its
offerings through an agreement to purchase Fresh Express, a company that sells
packaged salad and fresh-cut fruit for on-the-go consumers who want to eat
healthy. All these moves helped Chiquita's stock return 55% for the six months
ended March 31, 2005, making it one of the best performing stocks in the fund's
portfolio. But remember, past performance is not an indicator of future returns.
6
<Page>
FINANCIAL STATEMENTS
MARCH 31, 2005 (UNAUDITED) COLUMBIA YOUNG INVESTOR 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
MARCH 31, 2005 (UNAUDITED) COLUMBIA YOUNG INVESTOR FUND
<Table>
<Caption>
SHARES VALUE ($)
- -------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 99.5%
CONSUMER DISCRETIONARY - 12.6%
AUTO COMPONENTS - 0.4% Autoliv, Inc. 59,300 2,825,645
Auto Components Total 2,825,645
HOTELS, RESTAURANTS & LEISURE - 1.4% Choice Hotels International, Inc. 95,700 5,928,615
McDonald's Corp. 163,281 5,084,570
Hotels, Restaurants
& Leisure Total 11,013,185
HOUSEHOLD DURABLES - 0.6% Stanley Works 104,300 4,721,661
Household Durables Total 4,721,661
MEDIA - 7.0% Clear Channel Communications, Inc. 32,709 1,127,479
Comcast Corp., Class A (a) 219,500 7,414,710
Lee Enterprises, Inc. 84,400 3,662,960
Liberty Media Corp., Class A (a) 350,600 3,635,722
Liberty Media International, Inc.,
Class A (a) 67,837 2,967,190
McClatchy Co., Class A 119,200 8,839,872
McGraw-Hill Companies, Inc. 33,729 2,942,855
News Corp., Class B 206,400 3,634,704
R.H. Donnelley Corp. (a) 97,700 5,675,393
Time Warner, Inc. (a) 316,900 5,561,595
Viacom, Inc., Class B 218,297 7,603,285
Walt Disney Co. 64,857 1,863,342
Media Total 54,929,107
MULTILINE RETAIL - 0.7% Dillard's, Inc., Class A 105,400 2,835,260
Federated Department Stores, Inc. 40,643 2,586,520
Multiline Retail Total 5,421,780
SPECIALTY RETAIL - 2.5% Abercrombie & Fitch Co., Class A 67,900 3,886,596
Barnes & Noble, Inc. (a) 262,500 9,053,625
Home Depot, Inc. 180,640 6,907,674
Specialty Retail Total 19,847,895
--------------
CONSUMER DISCRETIONARY
TOTAL 98,759,273
CONSUMER STAPLES - 8.2%
BEVERAGES - 0.5% PepsiCo, Inc. 71,032 3,766,827
Beverages Total 3,766,827
FOOD & STAPLES RETAILING - 2.3% Costco Wholesale Corp. 209,700 9,264,546
Wal-Mart Stores, Inc. 166,000 8,318,260
Food & Staples Retailing
Total 17,582,806
FOOD PRODUCTS - 1.5% Chiquita Brands International, Inc. 236,900 6,344,182
Hershey Foods Corp. 40,330 2,438,352
Kraft Foods, Inc., Class A 89,007 2,941,681
Food Products Total 11,724,215
HOUSEHOLD PRODUCTS - 3.2% Clorox Co. 78,942 4,972,557
Colgate-Palmolive Co. 141,800 7,397,706
Kimberly-Clark Corp. 49,689 3,266,058
Procter & Gamble Co. 183,493 9,725,129
Household Products Total 25,361,450
</Table>
See Accompanying Notes to Financial Statements.
8
<Page>
<Table>
<Caption>
SHARES VALUE ($)
- -------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
CONSUMER STAPLES - (CONTINUED)
PERSONAL PRODUCTS - 0.7% Gillette Co. 114,500 5,779,960
Personal Products Total 5,779,960
--------------
CONSUMER STAPLES TOTAL 64,215,258
ENERGY - 9.1%
ENERGY EQUIPMENT & SERVICES - 1.5% Halliburton Co. 44,635 1,930,464
Schlumberger Ltd. 131,900 9,296,312
Energy Equipment &
Services Total 11,226,776
OIL & GAS - 7.6% Amerada Hess Corp. 89,900 8,649,279
BP PLC, ADR 49,312 3,077,069
ChevronTexaco Corp. 46,790 2,728,325
ConocoPhillips 59,300 6,394,912
Exxon Mobil Corp. 401,278 23,916,168
Newfield Exploration Co. (a) 121,500 9,022,590
Todco, Class A (a) 233,000 6,020,720
Oil & Gas Total 59,809,063
--------------
ENERGY TOTAL 71,035,839
FINANCIALS - 19.4%
CAPITAL MARKETS - 2.4% Bank of New York Co., Inc. 83,517 2,426,169
Federated Investors, Inc., Class B 88,700 2,511,097
Franklin Resources, Inc. 17,327 1,189,499
Goldman Sachs Group, Inc. 31,469 3,461,275
Janus Capital Group, Inc. 78,050 1,088,797
Merrill Lynch & Co., Inc. 93,383 5,285,478
Morgan Stanley 54,533 3,122,014
Capital Markets Total 19,084,329
COMMERCIAL BANKS - 4.5% City National Corp. 55,400 3,868,028
National City Corp. 63,598 2,130,533
PNC Financial Services Group, Inc. 16,867 868,313
Texas Regional Bancshares, Inc.,
Class A 91,050 2,741,515
U.S. Bancorp 184,432 5,315,330
Wachovia Corp. 101,991 5,192,362
Wells Fargo & Co. 255,931 15,304,674
Commercial Banks Total 35,420,755
CONSUMER FINANCE - 0.3% MBNA Corp. 107,171 2,631,048
Consumer Finance Total 2,631,048
DIVERSIFIED FINANCIAL SERVICES - 3.9% BlackRock, Inc., Class A 47,600 3,566,668
Citigroup, Inc. 333,544 14,989,467
JPMorgan Chase & Co. 187,891 6,501,029
Principal Financial Group, Inc. 145,400 5,596,446
Diversified Financial
Services Total 30,653,610
INSURANCE - 6.6% Allstate Corp. 24,561 1,327,768
American International Group, Inc. 167,291 9,269,594
Chubb Corp. 25,865 2,050,319
CNA Financial Corp. (a) 83,800 2,351,428
First American Corp. 119,300 3,929,742
Hartford Financial Services Group,
Inc. 32,031 2,196,045
</Table>
See Accompanying Notes to Financial Statements.
9
<Page>
<Table>
<Caption>
SHARES VALUE ($)
- -------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
FINANCIALS - (CONTINUED)
INSURANCE - (CONTINUED)
Lincoln National Corp. 185,800 8,387,012
Reinsurance Group of America, Inc. 63,900 2,720,862
SAFECO Corp. 178,100 8,675,251
UICI 243,400 5,902,450
Willis Group Holdings Ltd. 69,448 2,560,548
XL Capital Ltd., Class A 36,062 2,609,807
Insurance Total 51,980,826
REAL ESTATE - 1.4% Annaly Mortgage Management, Inc.,
REIT 253,600 4,757,536
AvalonBay Communities, Inc., REIT 20,700 1,384,623
St. Joe Co. 65,100 4,381,230
Real Estate Total 10,523,389
THRIFTS & MORTGAGE FINANCE - 0.3% Freddie Mac 29,280 1,850,496
Thrifts & Mortgage
Finance Total 1,850,496
--------------
FINANCIALS TOTAL 152,144,453
HEALTH CARE - 14.3%
BIOTECHNOLOGY - 0.9% Amgen, Inc. (a) 120,500 7,014,305
Biotechnology Total 7,014,305
HEALTH CARE EQUIPMENT & SUPPLIES - 1.5% Bausch & Lomb, Inc. 8,585 629,281
Medtronic, Inc. 214,300 10,918,585
Health Care Equipment &
Supplies Total 11,547,866
HEALTH CARE PROVIDERS & SERVICES - 7.2% Aetna, Inc. 33,874 2,538,856
Cardinal Health, Inc. 123,800 6,908,040
Coventry Health Care, Inc. (a) 131,750 8,977,445
Humana, Inc. (a) 272,200 8,694,068
IMS Health, Inc. 303,400 7,399,926
Lincare Holdings, Inc. (a) 216,800 9,589,064
Medco Health Solutions, Inc. (a) 179,700 8,907,729
Molina Healthcare, Inc. (a) 73,200 3,373,788
Health Care Providers &
Services Total 56,388,916
PHARMACEUTICALS - 4.7% Bristol-Myers Squibb Co. 59,539 1,515,863
GlaxoSmithKline PLC, ADR 25,263 1,160,077
Johnson & Johnson 181,670 12,200,957
Merck & Co., Inc. 62,585 2,025,876
Novartis AG, ADR 217,993 10,197,713
Pfizer, Inc. 302,782 7,954,083
Pharmion Corp. (a) 75,000 2,175,000
Pharmaceuticals Total 37,229,569
--------------
HEALTH CARE TOTAL 112,180,656
INDUSTRIALS - 7.9%
AEROSPACE & DEFENSE - 1.1% General Dynamics Corp. 23,223 2,486,022
United Technologies Corp. 62,467 6,350,395
Aerospace & Defense
Total 8,836,417
AIRLINES - 0.7% Alaska Air Group, Inc. (a) 176,200 5,187,328
Airlines Total 5,187,328
</Table>
See Accompanying Notes to Financial Statements.
10
<Page>
<Table>
<Caption>
SHARES VALUE ($)
- -------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
INDUSTRIALS - (CONTINUED)
COMMERCIAL SERVICES & SUPPLIES - 0.8% Career Education Corp. (a) 65,900 2,257,734
Cendant Corp. 57,075 1,172,321
Waste Management, Inc. 93,237 2,689,887
Commercial Services &
Supplies Total 6,119,942
ELECTRICAL EQUIPMENT - 0.1% Emerson Electric Co. 19,007 1,234,125
Electrical Equipment
Total 1,234,125
INDUSTRIAL CONGLOMERATES - 4.9% 3M Co. 53,228 4,561,107
General Electric Co. 712,109 25,678,651
Textron, Inc. 109,100 8,141,042
Industrial
Conglomerates Total 38,380,800
MACHINERY - 0.3% Eaton Corp. 37,037 2,422,220
Machinery Total 2,422,220
--------------
INDUSTRIALS TOTAL 62,180,832
INFORMATION TECHNOLOGY - 18.3%
COMMUNICATIONS EQUIPMENT - 0.9% Cisco Systems, Inc. (a) 409,700 7,329,533
Communications
Equipment Total 7,329,533
COMPUTERS & PERIPHERALS - 2.2% Apple Computer, Inc. (a) 65,200 2,716,884
Dell, Inc. (a) 202,300 7,772,366
International Business Machines Corp. 44,062 4,026,385
Lexmark International, Inc.,
Class A (a) 34,614 2,768,082
Computers & Peripherals
Total 17,283,717
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.8% Avnet, Inc. (a) 332,300 6,120,966
Electronic Equipment &
Instruments Total 6,120,966
INTERNET SOFTWARE & SERVICES - 0.9% InfoSpace, Inc. (a) 129,000 5,267,070
United Online, Inc. (a) 182,400 1,909,728
Internet Software &
Services Total 7,176,798
IT SERVICES - 2.6% Accenture Ltd., Class A (a) 133,795 3,231,149
Automatic Data Processing, Inc. 28,214 1,268,220
Computer Sciences Corp. (a) 166,400 7,629,440
Electronic Data Systems Corp. 77,000 1,591,590
NAVTEQ (a) 52,100 2,258,535
Paychex, Inc. 128,000 4,200,960
IT Services Total 20,179,894
OFFICE ELECTRONICS - 0.3% Xerox Corp. (a) 142,900 2,164,935
Office Electronics Total 2,164,935
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT - 6.2% Altera Corp. (a) 363,500 7,190,030
Analog Devices, Inc. 107,500 3,885,050
Applied Materials, Inc. 314,900 5,117,125
ASML Holding N.V., N.Y. Registered
Shares (a) 423,600 7,103,772
Marvell Technology Group Ltd. (a) 108,300 4,152,222
Maxim Integrated Products, Inc. 160,200 6,547,374
Microchip Technology, Inc. 123,800 3,220,038
Novellus Systems, Inc. (a) 180,200 4,816,746
Xilinx, Inc. 233,600 6,828,128
Semiconductors &
Semiconductor Equipment
Total 48,860,485
</Table>
See Accompanying Notes to Financial Statements.
11
<Page>
<Table>
<Caption>
SHARES VALUE ($)
- -------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
INFORMATION TECHNOLOGY - (CONTINUED)
SOFTWARE - 4.4% Adobe Systems, Inc. 132,600 8,906,742
Autodesk, Inc. 275,319 8,193,493
Microsoft Corp. 566,239 13,685,997
SAP AG, ADR 100,900 4,044,072
Software Total 34,830,304
--------------
INFORMATION TECHNOLOGY
TOTAL 143,946,632
MATERIALS - 5.3%
CHEMICALS - 1.6% Air Products & Chemicals, Inc. 21,829 1,381,557
E.I. du Pont de Nemours & Co. 27,884 1,428,776
Monsanto Co. 133,400 8,604,300
PPG Industries, Inc. 18,826 1,346,436
Chemicals Total 12,761,069
CONSTRUCTION MATERIALS - 0.4% Vulcan Materials Co. 58,300 3,313,189
Construction Materials
Total 3,313,189
METALS & MINING - 1.1% Phelps Dodge Corp. 85,800 8,728,434
Metals & Mining Total 8,728,434
PAPER & FOREST PRODUCTS - 2.2% Georgia-Pacific Corp. 185,500 6,583,395
Potlatch Corp. 156,800 7,380,576
Weyerhaeuser Co. 39,806 2,726,711
Paper & Forest Products
Total 16,690,682
--------------
MATERIALS TOTAL 41,493,374
TELECOMMUNICATION SERVICES - 2.8%
DIVERSIFIED TELECOMMUNICATION
SERVICES - 2.8% BellSouth Corp. 107,676 2,830,802
CenturyTel, Inc. 234,100 7,687,844
SBC Communications, Inc. 202,457 4,796,206
Verizon Communications, Inc. 181,574 6,445,877
Diversified
Telecommunication
Services Total 21,760,729
--------------
TELECOMMUNICATION
SERVICES TOTAL 21,760,729
UTILITIES - 1.6%
ELECTRIC UTILITIES - 1.1% Entergy Corp. 49,398 3,490,463
Exelon Corp. 44,920 2,061,379
PG&E Corp. 41,078 1,400,760
TXU Corp. 20,488 1,631,459
Electric Utilities Total 8,584,061
MULTI-UTILITIES & UNREGULATED POWER - 0.5% Constellation Energy Group 81,300 4,203,210
Multi-Utilities &
Unregulated Power Total 4,203,210
--------------
UTILITIES TOTAL 12,787,271
TOTAL COMMON STOCKS
(COST OF $672,480,133) 780,504,317
</Table>
See Accompanying Notes to Financial Statements.
12
<Page>
<Table>
<Caption>
PAR ($) VALUE ($)
- -------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM OBLIGATION - 0.2%
Repurchase agreement with State
Street Bank & Trust Co., dated
03/31/05, due 04/01/05 at 2.450%,
collateralized by a U.S. Treasury
Bond maturing 08/15/22, market value
of $1,935,430 (repurchase proceeds
$1,896,129) 1,896,000 1,896,000
TOTAL SHORT-TERM OBLIGATION
(COST OF $1,896,000) 1,896,000
TOTAL INVESTMENTS - 99.7%
(COST OF $674,376,133) (b) 782,400,317
OTHER ASSETS & LIABILITIES,
NET - 0.3% 1,932,570
NET ASSETS - 100.0% $ 784,332,887
</Table>
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing security.
(b) Cost for federal income tax purposes is $674,376,133.
<Table>
<Caption>
ACRONYM NAME
ADR American Depositary Receipt
REIT Real Estate Investment Trust
</Table>
At March 31, 2005, the Fund held investments in the following sectors:
<Table>
<Caption>
% OF
SECTOR NET ASSETS
-------------------------------------------------------------------------
Financials 19.4%
Information Technology 18.3
Health Care 14.3
Consumer Discretionary 12.6
Energy 9.1
Consumer Staples 8.2
Industrials 7.9
Materials 5.3
Telecommunication Services 2.8
Utilities 1.6
Short-Term Obligation 0.2
Other Assets & Liabilities, Net 0.3
-----
100.0%
=====
</Table>
See Accompanying Notes to Financial Statements.
13
<Page>
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2005 (UNAUDITED) COLUMBIA YOUNG INVESTOR FUND
<Table>
<Caption>
($)
- -------------------------------------------------------------------------------------------------------------------------------
ASSETS Investments, at cost 674,376,133
--------------
Investments, at value 782,400,317
Receivable for:
Investments sold 26,765,200
Fund shares sold 45,708
Interest 129
Dividends 1,034,085
Expense reimbursement due from
Investment Advisor 373,521
Deferred Trustees' compensation plan 19,060
--------------
Total Assets 810,638,020
LIABILITIES Payable to custodian bank 1,110,846
Payable for:
Investments purchased 23,236,172
Fund shares repurchased 397,057
Investment advisory fee 393,933
Administration fee 122,227
Transfer agent fee 783,273
Pricing and bookkeeping fees 16,261
Reports to shareholders 177,295
Distribution and service fees 32,571
Deferred Trustees' fees 19,060
Other liabilities 16,438
--------------
Total Liabilities 26,305,133
NET ASSETS 784,332,887
COMPOSITION OF NET ASSETS Paid-in capital 816,978,173
Undistributed net investment income 965,057
Accumulated net realized loss (141,634,527)
Net unrealized appreciation on
investments 108,024,184
--------------
NET ASSETS 784,332,887
CLASS A Net assets 93,223,855
Shares outstanding 7,429,267
Net asset value per share 12.55(a)
Maximum offering price per share
($12.55/0.9425) 13.32(b)
CLASS B Net assets 5,976,409
Shares outstanding 483,022
Net asset value and offering price
per share 12.37(a)
CLASS C Net assets 768,166
Shares outstanding 62,059
Net asset value and offering price
per share 12.38(a)
CLASS Z Net assets 684,364,457
Shares outstanding 62,623,599
Net asset value, offering and
redemption price per share 10.93
</Table>
(a) Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
(b) On sales of $50,000 or more the offering price is reduced.
See Accompanying Notes to Financial Statements.
14
<Page>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 2005 (UNAUDITED) COLUMBIA YOUNG INVESTOR FUND
<Table>
<Caption>
($)
- -------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME Dividends 8,132,771
Interest 30,939
--------------
Total Investment Income (net of foreign taxes withheld
of $36,422) 8,163,710
EXPENSES Investment advisory fee 2,315,714
Administration fee 722,219
Distribution fee:
Class A 47,700
Class B 23,043
Class C 2,938
Service fee:
Class A 119,251
Class B 7,681
Class C 979
Transfer agent fee:
Class A 402,074
Class B 22,820
Class C 2,963
Class Z 2,556,240
Pricing and bookkeeping fees 112,459
Trustees' fees 11,554
Custody fee 25,116
Non-recurring costs (See Note 7) 9,077
Other expenses 288,447
--------------
Total Expenses 6,670,275
Fees and expenses waived or reimbursed by Investment
Advisor:
Class A (316,510)
Class B (17,307)
Class C (2,259)
Class Z (1,634,260)
Fees waived by Distributor - Class A (23,850)
Non-recurring costs assumed by Investment Advisor
(See Note 7) (9,077)
Custody earnings credit (2,023)
--------------
Net Expenses 4,664,989
--------------
Net Investment Income 3,498,721
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS Net realized gain on investments 42,741,561
Net change in unrealized appreciation/depreciation on
investments 15,437,062
--------------
Net Gain 58,178,623
--------------
Net Increase in Net Assets from Operations 61,677,344
</Table>
See Accompanying Notes to Financial Statements.
15
<Page>
STATEMENT OF CHANGES IN NET ASSETS
COLUMBIA YOUNG INVESTOR FUND
<Table>
<Caption>
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED
MARCH 31, SEPTEMBER 30,
INCREASE (DECREASE) IN NET ASSETS: 2005 ($) 2004 ($)
- -------------------------------------------------------------------------------------------------------------------------------
OPERATIONS Net investment income 3,498,721 1,142,785
Net realized gain on investments 42,741,561 79,300,117
Net change in unrealized
appreciation/depreciation on
investments 15,437,062 7,949,049
-----------------------------------------
Net Increase from Operations 61,677,344 88,391,951
DISTRIBUTIONS DECLARED TO SHAREHOLDERS From net investment income:
Class A (453,789) --
Class Z (3,568,310) --
-----------------------------------------
Total Distributions Declared to
Shareholders (4,022,099) --
SHARE TRANSACTIONS Class A:
Subscriptions 2,275,142 5,875,316
Distributions reinvested 441,584 --
Redemptions (10,751,489) (16,955,769)
-----------------------------------------
Net Decrease (8,034,763) (11,080,453)
Class B:
Subscriptions 263,084 628,365
Redemptions (820,959) (2,147,700)
-----------------------------------------
Net Decrease (557,875) (1,519,335)
Class C:
Subscriptions 66,615 182,250
Redemptions (156,121) (113,350)
-----------------------------------------
Net Increase (Decrease) (89,506) 68,900
Class Z:
Subscriptions 17,742,870 42,087,456
Distributions reinvested 3,530,424 --
Redemptions (65,326,303) (115,275,588)
-----------------------------------------
Net Decrease (44,053,009) (73,188,132)
Net Decrease from Share Transactions (52,735,153) (85,719,020)
-----------------------------------------
Total Increase in Net Assets 4,920,092 2,672,931
NET ASSETS Beginning of period 779,412,795 776,739,864
End of period (including
undistributed net investment
income of $965,057 and $1,488,435,
respectively) 784,332,887 779,412,795
CHANGES IN SHARES Class A:
Subscriptions 183,986 506,593
Issued for distributions reinvested 35,018 --
Redemptions (871,693) (1,458,671)
-----------------------------------------
Net Decrease (652,689) (952,078)
Class B:
Subscriptions 21,517 54,732
Redemptions (67,192) (187,544)
-----------------------------------------
Net Decrease (45,675) (132,812)
Class C:
Subscriptions 5,541 15,881
Redemptions (12,857) (10,012)
-----------------------------------------
Net Increase (Decrease) (7,316) 5,869
Class Z:
Subscriptions 1,652,222 4,164,659
Issued for distributions reinvested 321,849 --
Redemptions (6,065,839) (11,357,922)
-----------------------------------------
Net Decrease (4,091,768) (7,193,263)
</Table>
See Accompanying Notes to Financial Statements.
16
<Page>
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2005 (UNAUDITED) COLUMBIA YOUNG INVESTOR FUND
NOTE 1. ORGANIZATION
Columbia Young Investor Fund (the "Fund"), a series of Columbia Funds Trust XI
(the "Trust"), is a diversified portfolio. The Trust is a Massachusetts business
trust registered under the Investment Company Act of 1940, as amended, as an
open-end management investment company.
INVESTMENT GOALS
The Fund seeks long-term growth of capital. The Fund also has an educational
objective to teach investors, especially young people, about basic economic
principles and personal finance through a variety of educational materials
prepared and paid for by the Fund.
FUND SHARES
The Fund may issue an unlimited number of shares and offers four classes of
shares: Class A, Class B, Class C and Class Z. Each share class has its own
sales charge and expense structure.
Class A shares are subject to a maximum front-end sales charge of 5.75% based on
the amount of initial investment. Class A shares purchased without an initial
sales charge are subject to a 1.00% contingent deferred sales charge ("CDSC") on
shares sold within eighteen months on an original purchase of $1 million to $25
million. Class B shares are subject to a maximum CDSC of 5.00% based upon the
holding period after purchase. Class B shares will convert to Class A shares in
a certain number of years after purchase, depending on the program under which
shares were purchased. Class C shares are subject to a 1.00% CDSC on shares sold
within one year after purchase. Class Z shares are offered continuously at net
asset value. There are certain restrictions on the purchase of Class Z shares,
as described in the Fund's prospectus.
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.
Investments for which market quotations are not readily available, or quotations
which management believes are not appropriate, are valued at fair value as
determined in good faith under consistently applied procedures established by
and under the general supervision of the Board of Trustees.
SECURITY TRANSACTIONS
Security transactions are accounted for on the trade date. Cost is determined
and gains (losses) are based upon the specific identification method for both
financial statement and federal income tax purposes.
REPURCHASE AGREEMENTS
The Fund may engage in repurchase agreement transactions with institutions that
the Fund's investment advisor has determined are creditworthy. The Fund, through
its custodian, receives delivery of underlying securities collateralizing a
repurchase agreement. Collateral is at least equal, at all times, to the value
of the repurchase obligation including 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.
17
<Page>
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. Awards from class action litigation are
recorded as a reduction of cost if the fund still owns the applicable securities
on payment date. If the Fund no longer owns the applicable securities, the
proceeds are recorded as realized gains.
The Fund estimates components of distributions from real estate investment
trusts (REITs). Distributions received in excess of income are recorded as a
reduction of the cost of the related investments. If the Fund no longer owns the
applicable securities, any distributions received in excess of income are
recorded as realized gains.
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.
DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders are recorded on ex-date. Net realized capital
gains, if any, are distributed at least annually.
NOTE 3. FEDERAL TAX INFORMATION
Unrealized appreciation and depreciation at March 31, 2005, based on cost of
investments for federal income tax purposes was:
<Table>
Unrealized appreciation $ 132,151,403
Unrealized depreciation (24,127,219)
--------------
Net unrealized appreciation $ 108,024,184
</Table>
The following capital loss carryforwards, determined as of September 30, 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 CARRYFORWARDS
---------------------------------------
2007 $ 1,167,536
2008 273,885
2009 25,009,742
2010 38,352,415
2011 119,232,204
-------------
Total $ 184,035,782
</Table>
Of these carryforwards, $21,710,750 (expiring 09/30/09) and $4,740,410
($1,167,533 expiring 09/30/07, $273,885 expiring 09/30/08 and $3,298,992
expiring 09/30/09) remain from the Fund's merger with Liberty Young Investor
Fund and Liberty Growth Investor Fund, respectively.
Utilization of Liberty Young Investor Fund's and Liberty Growth Investor Fund's
losses could be subject to limitations imposed by the Internal Revenue Code.
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 $500 million 0.60%
Next $500 million 0.55%
Over $1 billion 0.50%
</Table>
18
<Page>
For the six months ended March 31, 2005, the Fund's annualized effective
investment advisory fee rate was 0.58%.
ADMINISTRATION FEE
Columbia provides administrative and other services to the Fund for a monthly
administration 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 $500 million 0.200%
Next $500 million 0.150%
Over $1 billion 0.125%
</Table>
For the six months ended March 31, 2005, the Fund's annualized effective
administration fee rate was 0.18%.
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 March 31, 2005, the annualized effective pricing and
bookkeeping fee rate for the Fund, inclusive of out-of-pocket expenses, was
0.028%.
TRANSFER AGENT FEE
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 per class. The Transfer Agent also receives
reimbursement for certain out-of-pocket expenses.
Effective November 1, 2004, Columbia has voluntarily agreed to reimburse the
Fund for a portion of transfer agency fees so that transfer agent fees
(exclusive of out-of-pocket expenses) will not exceed 0.10% annually for the
Fund. Columbia, at its discretion, may revise or discontinue this arrangement
any time. Prior to November 1, 2004, Columbia voluntarily agreed to reimburse a
portion of transfer agency fees so that transfer agent fees (exclusive of
out-of-pocket expenses) would not exceed 0.10% annually for Class A, Class B and
Class C shares only.
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 March 31,
2005, the Distributor has retained net underwriting discounts of $3,199 on sales
of the Fund's Class A shares and net CDSC fees of $6,050, $4,681 and $3 on Class
A, Class B and Class C share redemptions, respectively.
The Fund has adopted a 12b-1 plan (the "Plan"), which allows 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.
The Plan also requires the payment of a monthly distribution fee to the
Distributor equal to 0.10% annually of the average daily net assets attributable
to Class A shares and 0.75% annually of the average daily net assets
attributable to Class B and Class C shares. The Distributor has voluntarily
agreed to waive a portion of the Class A share distribution fee so that it will
not exceed 0.05% annually.
The CDSC and the fees received from the Plan are used principally as repayment
to the Distributor for amounts paid by the Distributor to dealers who sold such
shares.
CUSTODY CREDITS
The Fund has an agreement with its custodian bank under which custody fees may
be reduced by balance credits. These credits are recorded as a reduction of
total expenses on the Statement of Operations. 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.
19
<Page>
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. The Board
of Trustees has 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 for the Chief Compliance Officer
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 March 31, 2005, the Fund paid $1,158 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 March 31, 2005, the cost of purchases and proceeds from
sales of securities, excluding short-term obligations, were $221,546,349 and
$269,327,341, respectively.
NOTE 6. 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 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 March 31, 2005, the Fund did not borrow under this
arrangement.
NOTE 7. DISCLOSURE OF SIGNIFICANT RISKS AND CONTINGENCIES
LEGAL PROCEEDINGS
On February 9, 2005, Columbia and the Distributor (collectively, the "Columbia
Group") entered into an Assurance of Discontinuance with the New York Attorney
General ("NYAG") (the "NYAG Settlement") and consented to the entry of a
cease-and-desist order by the Securities and Exchange Commission ("SEC") (the
"SEC Order"). The SEC Order and the NYAG Settlement are referred to collectively
as the "Settlements". The Settlements contain substantially the same terms and
conditions as outlined in the agreements in principle which 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 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 funds
management fees collectively by $32 million per year for five years, for a
projected total of $160 million in management fee reductions.
Pursuant to the procedures set forth in the SEC order, the $140 million in
settlement amounts described above will be distributed in accordance with a
distribution plan to be developed by an independent distribution consultant, who
is acceptable to the SEC staff and the Columbia Funds' independent trustees. The
distribution plan must be based on a methodology developed in consultation with
the Columbia Group and the Fund's independent trustees and not unacceptable to
the staff of the SEC. "At this time, the
20
<Page>
distribution plan is still under development. As such, any gain to the fund or
its shareholders can not currently be determined."
As a result of these matters or any adverse publicity or other developments
resulting from them, there may be increased redemptions or reduced sales of fund
shares, which could increase transaction costs or operating expenses, or have
other adverse consequences for the funds.
A copy of the SEC Order is available on the SEC website at http://www.sec.gov. A
copy of the NYAG Settlement is available as part of the Bank of America
Corporation Form 8-K filing on February 10, 2005.
On January 11, 2005, a putative class action lawsuit was filed in federal
district court in Massachusetts against, among others, the Trustees of the Fund
and Columbia. The lawsuit alleges that defendants violated common law duties to
fund shareholders as well as sections of the Investment Company Act of 1940, by
failing to ensure that the Fund and other affiliated funds participated in
securities class action settlements for which the funds were eligible.
Specifically, plaintiffs allege that defendants failed to submit proof of claims
in connection with settlements of securities class action lawsuits filed against
companies in which the funds held positions.
In 2004, certain Columbia funds, advisers and affiliated entities were named as
defendants in certain purported shareholder class and derivative actions making
claims, including claims under the Investment Company and the Investment
Advisers Acts of 1940 and state law. The suits allege, inter alia, that the fees
and expenses paid by the funds are excessive and that the advisers and their
affiliates inappropriately used fund assets to distribute the funds and for
other improper purpose. On March 2, 2005, the actions were consolidated in the
Massachusetts federal court as IN RE COLUMBIA ENTITIES LITIGATION. The
plaintiffs are expected to file a consolidated amended complaint in June 2005.
The Fund and the other defendants to these actions, including Columbia and
various of its affiliates, certain other mutual funds advised by Columbia and
its affiliates, and various directors of such funds, have denied these
allegations and are contesting the plaintiffs' claims. These proceedings are
ongoing, however, based on currently available information, Columbia believes
that these lawsuits are without merit, that the likelihood they will have a
material adverse impact on any fund is remote, and that the lawsuits are not
likely to materially affect its ability to provide investment management
services to its clients, including the Fund.
In connection with events described in detail above, various parties have filed
suit against certain funds, their Boards, FleetBoston Financial Corporation and
its affiliated entities and/or Bank of America Corporation and its affiliated
entities. More than 300 cases including those filed against entities
unaffiliated with the funds, their Boards, FleetBoston Financial Corporation and
its affiliated entities and/or Bank of America Corporation and its affiliated
entities have been transferred to the Federal District Court in Maryland and
consolidated in a multi-district proceeding (the "MDL"). On March 21, 2005
purported class action plaintiffs filed suit in Massachusetts state court
alleging that the conduct, including market timing, entitles Class B
shareholders in certain Columbia funds to an exemption from contingent deferred
sales charges upon early redemption (the "CDSC Lawsuit"). The CDSC Lawsuit has
been removed to federal court in Massachusetts and the federal Judicial Panel
has conditionally ordered its transfer to the MDL. The MDL is ongoing.
Accordingly, an estimate of the financial impact of this litigation on any Fund,
if any, can not currently be made.
For the six months ended March 31, 2005, Columbia has assumed $9,077 of legal,
consulting services and Trustees' fees incurred by the Fund in connection with
these matters.
21
<Page>
FINANCIAL HIGHLIGHTS
COLUMBIA YOUNG INVESTOR FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<Table>
<Caption>
(UNAUDITED) PERIOD
SIX MONTHS ENDED ENDED
MARCH 31, YEAR ENDED SEPTEMBER 30, SEPTEMBER 30,
CLASS A SHARES 2005 2004 2003 2002(a)
- -----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.68 $ 10.47 $ 8.52 $ 8.94
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b) 0.04(c) 0.03 (0.03) (0.01)
Net realized and unrealized gain (loss) on
investments 0.89 1.18 1.98 (0.41)
---------------- ---------- ---------- -------------
Total from Investment Operations 0.93 1.21 1.95 (0.42)
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.06) -- -- --
---------------- ---------- ---------- -------------
Total Distributions Declared to Shareholders (0.06) -- -- --
NET ASSET VALUE, END OF PERIOD $ 12.55 $ 11.68 $ 10.47 $ 8.52
Total return (d)(e) 7.95%(f) 11.56% 22.89% (4.70)%(f)
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (g) 1.35%(h) 1.33% 1.54% 1.67%(h)
Net investment income (loss) (g) 0.70%(h) 0.26% (0.35)% (0.49)%(h)
Waiver/reimbursement 0.71%(h) 1.10% 0.56% 0.80%(h)
Portfolio turnover rate 28%(f) 58% 128% 32%
Net assets, end of period (000's) $ 93,224 $ 94,386 $ 94,617 $ 82,564
</Table>
(a) Class A shares were initially offered on July 29, 2002. Per share data and
total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Net investment income per share reflects a special dividend which amounted
to $0.02 per share.
(d) Total return at net asset value assuming all distributions reinvested no
initial sales charge or contingent deferred sales charge.
(e) Had the Investment Advisor and/or Distributor not waived or reimbursed a
portion of expenses, total return would have been reduced.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
22
<Page>
<Table>
<Caption>
(UNAUDITED) PERIOD
SIX MONTHS ENDED ENDED
MARCH 31, YEAR ENDED SEPTEMBER 30, SEPTEMBER 30,
CLASS B SHARES 2005 2004 2003 2002(a)
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.50 $ 10.39 $ 8.51 $ 8.94
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b) --(c)(d) (0.05) (0.10) (0.02)
Net realized and unrealized gain (loss) on
investments 0.87 1.16 1.98 (0.41)
---------------- ---------- ---------- -------------
Total from Investment Operations 0.87 1.11 1.88 (0.43)
NET ASSET VALUE, END OF PERIOD $ 12.37 $ 11.50 $ 10.39 $ 8.51
Total return (e)(f) 7.57%(g) 10.68% 22.09% (4.81)%(g)
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (h) 2.05%(i) 2.03% 2.24% 2.37%(i)
Net investment loss (h) --%(i)(j) (0.44)% (1.05)% (1.19)%(i)
Waiver/reimbursement 0.56%(i) 0.46% 0.51% 0.75%(i)
Portfolio turnover rate 28%(g) 58% 128% 32%
Net assets, end of period (000's) $ 5,976 $ 6,082 $ 6,872 $ 6,505
</Table>
(a) Class B shares were initially offered on July 29, 2002. Per share data and
total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Rounds to less than $0.01 per share.
(d) Net investment income per share reflects a special dividend which amounted
to $0.02 per share.
(e) Total return at net asset value assuming no contingent deferred sales
charge.
(f) Had the Investment Advisor not waived or reimbursed a portion of expenses,
total return would have been reduced.
(g) Not annualized.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
(j) Rounds to less than 0.01%.
23
<Page>
<Table>
<Caption>
(UNAUDITED) PERIOD
SIX MONTHS ENDED ENDED
MARCH 31, YEAR ENDED SEPTEMBER 30, SEPTEMBER 30,
CLASS C SHARES 2005 2004 2003 2002(a)
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.51 $ 10.39 $ 8.51 $ 8.94
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (b) --(c)(d) (0.05) (0.10) (0.02)
Net realized and unrealized gain (loss) on
investments 0.87 1.17 1.98 (0.41)
---------------- ---------- ---------- -------------
Total from Investment Operations 0.87 1.12 1.88 (0.43)
NET ASSET VALUE, END OF PERIOD $ 12.38 $ 11.51 $ 10.39 $ 8.51
Total return (e)(f) 7.56%(g) 10.78% 22.09% (4.81)%(g)
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (h) 2.05%(i) 2.03% 2.24% 2.37%(i)
Net investment income (loss) (h) 0.04%(i) (0.44)% (1.05)% (1.19)%(i)
Waiver/reimbursement 0.58%(i) 0.71% 0.50% 0.75%(i)
Portfolio turnover rate 28%(g) 58% 128% 32%
Net assets, end of period (000's) $ 768 $ 798 $ 660 $ 488
</Table>
(a) Class C shares were initially offered on July 29, 2002. Per share data and
total return reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Rounds to less than $0.01 per share.
(d) Net investment income per share reflects a special dividend which amounted
to $0.02 per share.
(e) Total return at net asset value assuming no contingent deferred sales
charge.
(f) Had the Investment Advisor not waived or reimbursed a portion of expenses,
total return would have been reduced.
(g) Not annualized.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
24
<Page>
<Table>
<Caption>
(UNAUDITED)
SIX MONTHS ENDED
MARCH 31, YEAR ENDED SEPTEMBER 30,
CLASS Z SHARES 2005 2004 2003(a) 2002(a)(b) 2001(a) 2000(a)
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
BEGINNING OF PERIOD $ 10.16 $ 9.13 $ 7.42 $ 9.38 $ 17.97 $ 13.71
INCOME FROM INVESTMENT
OPERATIONS:
Net investment
income (loss) (c) 0.05(d) 0.01 (0.03) (0.07)(e) (0.06)(e) (0.07)(e)
Net realized and unrealized
gain (loss) on investments 0.77 1.02 1.74 (1.89) (6.52) 4.49
---------------- ---------- ---------- ----------- ----------- -----------
Total from Investment
Operations 0.82 1.03 1.71 (1.96) (6.58) 4.42
LESS DISTRIBUTIONS DECLARED
TO SHAREHOLDERS:
From net investment income (0.05) -- -- -- -- --
From net realized gains -- -- -- -- (1.56) (0.16)
In excess of net realized gains -- -- -- -- (0.45) --
---------------- ---------- ---------- ----------- ----------- -----------
Total Distributions Declared
to Shareholders (0.05) -- -- -- (2.01) (0.16)
NET ASSET VALUE, END OF PERIOD $ 10.93 $ 10.16 $ 9.13 $ 7.42 $ 9.38 $ 17.97
Total return (f) 8.12%(g) 11.28% 23.05% (20.90)% (40.08)% 32.32%
RATIOS TO AVERAGE NET ASSETS/
SUPPLEMENTAL DATA:
Expenses (h) 1.13%(i) 1.46% 1.49% 1.58%(e) 1.26%(e) 1.08%(e)
Net investment
income (loss) (h) 0.91%(i) 0.13% (0.30)% (0.71)%(e) (0.41)%(e) (0.45)%(e)
Waiver/reimbursement 0.47%(i) --% --% --% --% --%
Portfolio turnover rate 28%(g) 58% 128% 32% 23%(j) 72%(j)
Net assets, end of
period (000's) $ 684,364 $ 678,146 $ 674,590 $ 573,111 $ 746,698 $ 1,215,809
</Table>
(a) Per share data has been restated to reflect a 2-for-1 share split effective
July 25, 2003.
(b) Class S shares were redesignated Class Z shares on July 29, 2002.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Net investment income per share reflects a special dividend which amounted
to $0.02 per share.
(e) Per share data and ratios reflect income and expenses inclusive of the
Fund's proportionate share of the income and expenses of the SR&F Growth
Investor Portfolio prior to the termination of the master feeder/fund
structure on July 26, 2002.
(f) Total return at net asset value assuming all distributions reinvested.
(g) Not annualized.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
(j) Portfolio turnover disclosed is for the SR&F Growth Investor Portfolio.
25
<Page>
BOARD CONSIDERATION AND APPROVAL OF INVESTMENT ADVISORY AGREEMENT
COLUMBIA YOUNG INVESTOR FUND
Section 15(c) of the Investment Company Act of 1940 (the "1940 Act") requires
that the Board of Trustees/Directors (the "Board") of the Columbia Funds (the
"Funds"), including a majority of the Trustees and Directors (collectively, the
"Trustees") who are not "interested persons" of the Trusts, as defined in the
1940 Act (the "Independent Trustees"), annually review and approve the terms of
the Funds' investment advisory agreements. During the most recent six months
covered by this report, the Board reviewed and approved the management contracts
("Advisory Agreements") with Columbia Management Advisors, Inc. ("CMA") for the
Fund.
At meetings held on September 23, 2004 and October 12, 2004, the Advisory Fees
and Expenses Committee (the "Committee") of the Board considered the factors
described below relating to the selection of CMA and the approval of the
Advisory Agreement. At a meeting held on October 13, 2004, the Board, including
the Independent Trustees (who were advised by their independent legal counsel),
considered these factors and reached the conclusions described below.
NATURE, EXTENT AND QUALITY OF SERVICES
The Board considered information regarding the nature, extent and quality of
services that CMA provides to the Fund under the Advisory Agreement. CMA
provided the most recent investment adviser registration form ("Form ADV") and
code of ethics for CMA to the Board. The Board reviewed information on the
status of Securities and Exchange Commission ("SEC") and New York Attorney
General ("NYAG") proceedings against CMA and certain of its affiliates,
including the agreement in principle entered into with the SEC and the NYAG on
March 15, 2004 to settle civil complaints filed by the SEC and the NYAG relating
to trading activity in mutual fund shares.(1)
The Board evaluated the ability of CMA, including its resources, reputation and
other attributes, to attract and retain highly qualified research, advisory and
supervisory investment professionals. The Board considered information regarding
CMA's compensation program for its personnel involved in the management of the
Fund.
Based on these considerations and other factors, including those referenced
below, the Board concluded that they were generally satisfied with the nature,
extent and quality of the investment advisory services provided to the Fund by
CMA.
FUND PERFORMANCE AND EXPENSES
CMA provided the Board with relative performance and expense information for the
Fund in a report prepared by Lipper Inc. ("Lipper") an independent provider of
investment company data. The Board considered the total return performance
information, which included the ranking of the Fund within a performance
universe made up of funds with the same Lipper investment classification and
objective (the "Performance Universe") by total return for one-year, three-year,
five-year, ten-year or life of fund periods, as applicable. They also considered
the Fund's performance in comparison to the performance results of a group (the
"Performance Peer Group") of funds selected by Lipper based on similarities in
fund type (e.g. open-end), investment classification and objective, asset size,
load type and 12b-1/service fees and other expense features, and to the
performance results of the Fund's benchmark index. The Board reviewed a
description of Lipper's methodology for selecting the mutual funds in the Fund's
Performance Peer Group and Performance Universe.
The Board considered statistical information regarding the Fund's total expenses
and certain components thereof, including management fees (both actual
management fees based on expenses for advisory and administrative fees including
any reductions for fee waivers and expense reimbursements as well as contractual
management fees that are computed for a hypothetical level of assets), actual
non-management expenses, and fee waivers/caps and expense reimbursements. They
also considered comparisons of these expenses to the expense information for
funds within a group (the "Expense Peer Group") selected by Lipper based on
similarities in fund type (e.g. open-end), investment classification and
objective, asset size, load type and 12b-1/service fees and other expense
features (but which, unlike the Performance Peer Group, may include funds with
several different investment classifications and objectives) and an
(1) On February 9, 2005, CMA and its affiliate, Columbia Funds Distributor,
Inc., entered into settlement agreements with the SEC and the NYAG that
contain substantially the terms outlined in the agreements in principle.
26
<Page>
expense universe ("Expense Universe") selected by Lipper based on the criteria
for determining the Expense Peer Group other than asset size. The expense
information in the Lipper report took into account all existing fee waivers and
expense reimbursements as well as all voluntary advisory fee reductions
applicable to certain Funds that were being proposed by management in order to
reduce the aggregate advisory fees received from mutual funds advised by CMA and
Banc of America Capital Management, LLC ("BACAP") by $32 million per year for
five years as contemplated by the agreement in principle with the NYAG.
The Committee also considered the projected impact on expenses of these Funds
resulting from the overall cost reductions that management anticipated would
result from the proposed shift to a common group of service providers for
transfer agency, fund accounting and custody services for mutual funds advised
by Bank of America affiliates.
The Boards also considered information is the Lipper report that ranked each
Funds based on (i) each Fund's one-year performance and actual advisory fees,
(ii) each Fund's one-year performance and total expenses and (iii) each Fund's
3-year performance and total expenses.
Based on these comparisons and expense and performance rankings of the Fund in
the Lipper Report, CMA determined an overall score for the Fund. The Committee
and the Board also considered projected savings to the Fund that would result
from certain modifications in soft dollar arrangements.
The Committee also considered more detailed information relating to certain
Funds that were highlighted for additional review based upon the fact that they
ranked poorly in terms of overall expense or management fees, maintained poor
performance or demonstrated a combination of below average to poor performance
while maintaining below average or poor expense rankings. At its September 23,
2004 meeting, the Committee discussed these Funds with management and in
executive session. The Committee requested additional information from
management regarding the cause(s) of the below-average relative performance of
these Funds, any remedial actions management recommended to improve performance
and the general standards for review of portfolio manager performance. At its
October 12, 2004 meeting, the Committee considered additional information
provided by management regarding these Funds. The Board also considered
management's proposal to merge or liquidate some of these Funds.
In addition, the Boards considered proposed changes in the portfolio management
of the Columbia Young Investor Fund and a proposed 10 basis point cap on the
transfer agency expenses for the Columbia Young Investor Fund.
Based on these considerations and other factors, the Board concluded that the
overall performance and expense results supported by the approval of the
Advisory Agreements for each Fund.
INVESTMENT ADVISORY FEE RATES
The Board reviewed and considered the proposed contractual investment advisory
fee rates (the "Advisory Agreement Rates") payable by the Funds to CMA for
investment advisory services. In addition, the Board reviewed and considered the
existing and proposed fee waiver and reimbursement arrangements applicable to
the Advisory Agreement Rates and considered the Advisory Agreement Rates after
taking the fee waivers and reimbursements into account (the "Net Advisory
Rates"). At previous meetings, the Committee had separately considered
management's proposal to reduce annual investment advisory fees for certain
Funds under the NYAG agreement in principle and the impact of these reductions
on each affected Fund. Additionally, the Board considered information comparing
the Advisory Agreement Rates and Net Advisory Rates (both on a stand-alone basis
and on a combined basis with the Funds' administration fee rates) with those of
the other funds in the Expense Peer Group. The Board concluded that the Advisory
Agreement Rates and Net Advisory Rates represented reasonable compensation to
CMA, in light of the nature, extent and quality of the services provided to the
Funds, the fees paid and expenses borne by comparable funds and the costs that
CMA incurs in providing these services to the Funds.
27
<Page>
PROFITABILITY
The Board considered a detailed profitability analysis of CMA based on 2003
financial statements, adjusted to take into account advisory fee reductions
implemented in November 2003 and proposed reductions under the NYAG proposed
settlement. The Board concluded that, in light of the costs of providing
investment management and other services to the Funds, the profits and other
ancillary benefits that CMA and its affiliates received for providing these
services to the Funds were not unreasonable.
ECONOMIES OF SCALE
In evaluating potential economies of scale, the Board considered CMA's proposal
to implement a standardized breakpoint schedule for combined advisory and
administrative fees for the majority of the funds of the same general asset type
within the Columbia Funds complex (other than index and closed-end funds). The
Board noted that the standardization of the breakpoints would not result in a
fee increase for any Fund. The Board concluded that any actual or potential
economies of scale are, or will be, shared fairly with Fund shareholders,
including most particularly through Advisory Agreement Rate breakpoints at
current and reasonably foreseeable asset levels.
INFORMATION ABOUT SERVICES TO OTHER CLIENTS
In evaluating the proposed fee reductions under the NYAG agreement in principle,
the Board considered information regarding the advisory fee rates charged by
BACAP for the Nations Funds. Members of the Committee and the Board had also
separately reviewed advisory fee rates for variable insurance product funds
advised by CMA. This information assisted the Board in assessing the
reasonableness of fees paid under the Advisory Agreements in light of the
nature, extent and quality of services provided under those agreements.
OTHER BENEFITS TO CMA
The Board considered information regarding potential "fall-out" or ancillary
benefits received by CMA and its affiliates as a result of their relationship
with the Funds. These benefits could include benefits directly attributable to
the relationship of CMA with the Funds (such as soft dollar credits) and
benefits potentially derived from an increase in the business of CMA as a result
of their relationship with the Funds (such as the ability to market to
shareholders other financial products offered by CMA and its affiliates).
OTHER FACTORS AND BROADER REVIEW
The Board reviews detailed materials provided by CMA annually as part of the
approval process under Section 15(c) of the 1940 Act. The Board also regularly
reviews and assesses the quality of the services that the Funds receive
throughout the year. In this regard, the Board reviews information provided by
CMA at their regular meetings, including, among other things, a detailed
portfolio review, and detailed fund performance reports. In addition, the Board
interviews the heads of each investment area at each regular meeting of the
Board and selected portfolio managers of the Funds at various times throughout
the year. After considering the above-described factors and based on the
deliberations and their evaluation of the information provided to them, the
Board concluded that re-approval of the Advisory Agreements for each of the
Funds was in the best interest of the Funds and their shareholders. Accordingly,
the Board unanimously approved the Advisory Agreements.
28
<Page>
ACTIVITY PAGES
A-MAZE-ING RACE!
Sarah Saver's very rich Uncle Alfred just called. For Sarah's birthday, Uncle
Alfred has promised to match whatever money she can earn in one week by doing
chores at home. In the maze below, the correct path offers several chances for
Sarah to earn money. As you pass by each chore, color it in. Then write the
amount of money Sarah earned in the box to the right. When you reach the end of
the maze, add up all the money that Sarah earned. Then add in the birthday match
from Uncle Alfred to find the total amount Sarah will put in her piggybank. (You
can check your answer with the answer at the bottom of the page.)
[GRAPHIC]
HOW MUCH MONEY FOR PIGGY?
<Table>
Amount Sarah earned from chores: $ _________
$ _________
$ _________
$ _________
TOTAL EARNED FROM CHORES $ _________
Birthday match from Uncle Alfred $ _________
TOTAL MONEY FOR SARAH'S PIGGYBANK $ _________
</Table>
Answers: $66.00
I
<Page>
ADDING UP YOUR ALLOWANCE
[GRAPHIC]
Maybe your parents give you an allowance for chores you do around home, or maybe
they just want you to learn about money. But one thing's for sure: An allowance
can be a powerful tool if you use it the right way. To see how much you know
about an allowance, fill in the blanks beside the following questions. You can
then check your answers with those at the bottom of this page.
1 If your allowance is $4 per week, how much money would you have if you saved
it all for one month (four weeks)?___________________________________
2 How much would you have if you saved all of your allowance for three months
(12 weeks)?_______________
3 If you spent half your $4 allowance each week and saved the rest, how much
money would you have after three months?___________________________________
4 Let's say that in addition to an allowance of $4 per week, you received an
extra $1 per week for doing the dishes each night. If you saved all of your
allowance and this extra money, how much money would you have at the end of
three months?______________________________________________________________
5 With an allowance of $4 per week and the extra $1 for doing the dishes, how
many weeks would it take you to save $25 for a new computer game?__________
ANSWERS: 1. $16, 2. $48, 3. $24, 4. $60, 5. 5.
II
<Page>
INVESTING PUZZLER
How's your investing vocabulary? See if you can fill in the crossword puzzle
using the clues for investing terms below. (You can find the answers to the
puzzle at the bottom of this page.)
[GRAPHIC]
ACROSS
1 Piece of a mutual fund that you own
5 A time when stock prices are rising is called a ______market
6 Mutual _______
8 Certificate of deposit (abbreviation)
9 __________ Street
12 Income that a company pays to stockholders from its profits
DOWN
1 Investment that makes you part owner of a company
2 Total ___________
3 A company's earnings (or revenues) minus its costs
4 To redeem an investment
6 Short for Federal Reserve Board
7 _______ Jones Industrial Average
10 Mutual fund sales charge
11 Net asset value (abbreviation)
ACROSS: 1. SHARE, 5. BULL, 6. FUND, 8. CD, 9. WALL, 12. DIVIDEND.
DOWN: 1. STOCK, 2. RETURN, 3. PROFIT, 4. SELL, 6. FED, 7. DOW, 10. LOAD, 11. NAV
III
<Page>
A GOOD WORD TO LEARN
As you probably know, you can sometimes lose money when you invest. Your risk of
losing money may be less, however, if you DIVERSIFY your investments. This means
putting money into many different types of investments. A mutual fund like
Liberty Young Investor Fund, which includes dozens of stocks, is one way to
diversify. Even if some stocks in the fund lose money, there may be many others
that can help your savings grow.
Just for fun, see how many smaller words (of three or more letters) you can find
in the word "diversify." Write those words in the blanks below. Then compare
your list with the list at the bottom of this page.
[GRAPHIC]
SOME ANSWERS:
five ride side very fired verify
edify diver vise fire fiery sir
dive dire sire rife red rid
rise die dye fie fed vie
IV
<Page>
WHAT'S YOUR GOAL?
Nobody likes to think about losing money on an investment. But taking that risk
is a routine part of the investing process. In fact, a greater risk can often
mean a better return on your investment over time. The amount of risk that's
right for one investor may not be right for another, however. Your own "risk
tolerance" depends on the length of time you plan to invest, for example, as
well as the way you feel about risk in general.
Usually, the more time you have to invest for a particular goal, the more risk
you can afford to take. This is because you have more time to recover any money
that you may lose. As a result, you can probably take more risk with your
investments than your parents can -- especially if you're investing for a goal
that's many years away. You may also be able to take more risk because you have
fewer financial responsibilities, like taking care of an elderly relative or
putting a child through college.
In deciding how much risk to take, many investors use a method called "asset
allocation." This means splitting your money among different types of
investments, such as stocks and bonds, according to your personal risk
tolerance. Because stocks tend to be riskier, people usually invest more heavily
in stocks when they have long-term goals. Because bonds generally involve less
risk, investors tend to rely more heavily on bonds for short-term goals.
Investors with very short amounts of time often depend heavily on low-risk
"cash" investments such as savings accounts, money market funds or certificates
of deposit (CDs).
To understand how asset allocation works, think of your savings as a large pie
with slices of different sizes that represent stock, bond and cash investments.
If your goal is 15 or more years away and you have few financial
responsibilities, your pie might look like the "aggressive" strategy in
Portfolio A -- which has the biggest slice (70%) for stocks. Portfolio B (with
50% in stocks) represents a more "moderate" approach that you might use for an
investing period of five to 15 years. Portfolio C (with 30% in stocks) shows a
"conservative" approach that you might use if your goal is less than five years
away.
PORTFOLIO A:
"AGGRESSIVE"
(More than 15 years)
[CHART]
<Table>
cash 5%
bonds 25%
stocks 70%
</Table>
PORTFOLIO B:
"MODERATE"
(From 5 to 15 years)
[CHART]
<Table>
cash 10%
bonds 40%
stocks 50%
</Table>
PORTFOLIO C:
"CONSERVATIVE"
(Less than 5 years)
[CHART]
<Table>
cash 15%
bonds 55%
stocks 30%
</Table>
These examples are hypothetical. They are intended for illustrative purposes
only. They are intended to represent a specific investment portfolio. All
information contained herein is purely fictitious and has been created solely
for educational purposes.
Let's look at some hypothetical investors with different financial
responsibilities, investment goals and timeframes. While there may be other
factors that affect their risk tolerance, such as personal experiences that
change each person's attitude toward risk, see if you can use the information
below to match each investor with one of the three portfolios above. (You can
check your responses with the suggested answers below.)
1 Parents who are starting a college savings account for a 5-year-old child
______________________________
2 Parents who are starting a college savings account for a 10-year-old child
_____________________________
3 Parents who are starting a college savings account for a 15-year-old child
_____________________________
4 A single, 25-year-old whose primary goal is retirement savings
______________________________________
5 A single, 65-year-old whose primary goal is retirement savings
______________________________________
6 A single, 55-year-old whose primary goal is retirement savings
______________________________________
7 A single, 55-year-old who is saving for retirement and has a child who just
started college _______________
8 A 55-year-old man who is saving for retirement and has a wife with no
retirement savings _______________
9 An investor whose primary goal is to buy a vacation home in three years
______________________________
10 An investor whose primary goal is to buy a vacation home in seven years
_____________________________
SUGGESTED ANSWERS: 1. A, 2. B, 3. C, 4. A, 5. C, 6. B, 7. C, 8. C, 9. C,
10. B.
V
<Page>
MISSING LINKS!
Here's a little brainteaser to test your math skills.
First, note that the number in the answer blank for Problem #1 has been copied
into the first blank for Problem #2. Find the answer for Problem #2 and put that
number in the first blank for Problem #3. Then use the answer for Problem #3 to
find the answer for Problem #4, and so on. When you finish all the problems,
check your answers with those at the bottom of the page.
[GRAPHIC]
Answers for Problems #2 through #7: 26, 38, 28, 36, 13, 70.
VI
<Page>
COLUMBIA FUNDS
COLUMBIA YOUNG INVESTOR 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
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
Columbia Thermostat
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>
29
<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.
30
<Page>
IMPORTANT INFORMATION ABOUT THIS REPORT
COLUMBIA YOUNG INVESTOR FUND
<Table>
TRANSFER AGENT The fund mails one shareholder report to each shareholder address. If you would
Columbia Funds Services, Inc. like more than one report, please call shareholder services at 800-345-6611 and
P.O. Box 8081 additional reports will be sent to you.
Boston MA 02266-8081
800-345-6611 This report has been prepared for shareholders of Columbia Young Investor Fund.
This report may also be used as sales literature when preceded or accompanied by
DISTRIBUTOR the current prospectus which provides details of sales charges, investment
Columbia Funds Distributor, Inc. objectives and operating policies of the fund and with the most recent copy of
One Financial Center the Columbia Funds Performance Update.
Boston MA 02111
A description of the fund's proxy voting policies and procedures is available
INVESTMENT ADVISOR (i) on the fund's website, www.columbiamanagement.com; (ii) on the Securities
Columbia Management Advisors, Inc. and Exchange Commission's website at www.sec.gov, and (iii) without charge, upon
100 Federal Street request, by calling 800-368-0346. Information regarding how the fund voted
Boston MA 02110 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.
</Table>
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.
31
<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 YOUNG INVESTOR FUND SEMIANNUAL REPORT, MARCH 31, 2005 PRSRT STD
U.S. Postage
PAID
Holliston, MA
Permit NO. 20
COLUMBIA MANAGEMENT
(C) 2005 COLUMBIA FUNDS DISTRIBUTOR, INC.
ONE FINANCIAL CENTER, BOSTON, MA 02111-2621
800.345.6611 www.columbiafunds.com
756-03/046V-0405 (05/05) 05/5626
COLUMBIA
EQUITY FUNDS
SEMIANNUAL REPORT
MARCH 31, 2005
[PHOTO OF WOMAN HOLDING A PEN]
TABLE OF CONTENTS
ECONOMIC UPDATE ........................................................... 1
COLUMBIA ASSET ALLOCATION FUND ............................................ 2
COLUMBIA LARGE CAP GROWTH FUND ............................................ 6
COLUMBIA DISCIPLINED VALUE FUND ........................................... 10
COLUMBIA LARGE CAP CORE FUND .............................................. 14
COLUMBIA SMALL CAP FUND ................................................... 18
COLUMBIA SMALL COMPANY EQUITY FUND ........................................ 22
FINANCIAL STATEMENTS ...................................................... 26
BOARD CONSIDERATION AND APPROVAL OF
INVESTMENT ADVISORY AGREEMENTS ............................................ 120
COLUMBIA FUNDS ............................................................ 123
IMPORTANT INFORMATION
ABOUT THIS REPORT ......................................................... 125
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 EQUITY FUNDS
DEAR SHAREHOLDER:
[PHOTO OF CHRISTOPHER WILSON]
In 2004, Columbia Funds became part of the Bank of America family, one of the
largest, most respected financial institutions in the United States. As a direct
result of this merger, a number of changes are in the works that we believe may
offer significant benefits for our shareholders. Plans are underway to combine
various Nations Funds and Columbia Funds together to form a single fund family
that covers a wide range of markets, sectors and asset classes under the
management of talented, seasoned investment professionals. As a result, some
funds will be merged in order to eliminate redundancies and fund management
teams will be aligned to help 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, we recently announced plans to consolidate the transfer agency of all
of our funds and consolidate custodial services, each under a single vendor. We
have also reduced management fees for many funds as part of our settlement
agreement (See Note 7 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 better has another name: it's
called improvement. It helps move us forward, and we believe that it represents
progress for all our shareholders in their quest for long-term financial
success. In the pages that follow, you'll find a discussion of the economic
environment during the period followed by a detailed report from the fund's
manager or managers on key factors that influenced performance. We hope that you
will read the manager reports carefully and discuss any questions you might have
with your financial advisor. As always, we thank you for choosing Columbia
Funds. We appreciate your continued confidence. And, we look forward to helping
you keep your long-term financial goals on target in the years to come.
Sincerely,
/s/ Christopher Wilson
Christopher Wilson
HEAD OF MUTUAL FUNDS, COLUMBIA MANAGEMENT
Christopher Wilson is Head of Mutual Funds for Columbia Management, responsible
for the day-to-day delivery of mutual fund services to the firm's investors.
With the exception of distribution, Chris oversees all aspects of the mutual
fund services operation, including treasury, investment accounting and
shareholder and broker services. Chris serves as Columbia Management's liaison
to the mutual fund boards of trustees. Chris joined Bank of America in August
2004.
[SIDEBAR]
SUMMARY
FOR THE SIX-MONTH PERIOD
ENDED MARCH 31, 2005
o BUOYED BY A MARKET RALLY IN THE FIRST HALF OF THE PERIOD, THE S&P 500
INDEX RETURNED 6.88%. SMALL-CAP STOCKS DID EVEN BETTER, AS MEASURED BY THE
RUSSELL 2000 INDEX.
[UP ARROW] [UP ARROW]
S&P 500 INDEX RUSSELL INDEX
6.88% 8.00%
o DESPITE RISING INTEREST RATES, BONDS DELIVERED MODEST GAINS. THE LEHMAN
BROTHERS AGGREGATE BOND INDEX RETURNED 0.47%. HIGH-YIELD BONDS LED THE
FIXED INCOME MARKETS. THE MERRILL LYNCH US HIGH YIELD, CASH PAY INDEX
RETURNED 2.96%.
[UP ARROW] [UP ARROW]
LEHMAN INDEX MERRILL LYNCH INDEX
0.47% 2.96%
The S&P 500 Index is an unmanaged index that tracks the performance of 500
widely held, large capitalization US stocks.
The Russell 2000 Index is an unmanaged index that tracks the performance of the
2,000 smallest of the 3,000 largest U.S. companies based on market
capitalization.
The Lehman Brothers Aggregate Bond Index is a market value-weighted index that
tracks the performance of fixed-rate, publicly placed, dollar-denominated,
non-convertible investment-grade debt issues.
The Merrill Lynch US High Yield, Cash Pay Index is an unmanaged index that
tracks the performance of non-investment grade corporate bonds.
ECONOMIC UPDATE_________________________________________________________________
COLUMBIA EQUITY FUNDS
During the six-month period that began October 1, 2004, and ended March 31,
2005, the US economy grew at a healthy pace as household and business spending
expanded. Fourth quarter gross domestic product (GDP) growth was originally
estimated at 3.1%. However, it was revised to 3.8% once it was discovered that
the trade gap appeared to have been overstated. In fact, nearly all sectors that
contribute to US GDP were revised higher. First quarter GDP was reported at
3.1%--lower than most economists expected it to be, but that is still slightly
above the economy's long-term growth rate of 3.0%.
Job growth dominated US economic news as the pace of new job creation picked up
and more than two million jobs were created in 2004. In 2005 both January and
March job additions came in somewhat below expectations, putting an end to the
rise in consumer confidence readings. Yet, consumers overall remained
significantly more optimistic about the prospects for the economy and about
their own employment than they were a year ago.
STOCKS PICK UP, THEN LOSE MOMENTUM
Stock market performance picked up as employment news improved in 2004 and
uncertainty surrounding the US presidential election was resolved. But investors
turned cautious early in 2005 at the possibility of higher interest rates,
higher inflation, sharply higher energy prices and subdued corporate profit
growth and the stock market lost momentum. Nevertheless, the stock market
delivered solid gains for the period. The S&P 500 Index returned 6.88%.
Small-cap stocks did better than large-cap stocks, as measured by the Russell
2000(R) Index, which gained 8.00% over the same period. Energy and utility
stocks were the period's strongest performers.
BOND RETURNS SLIDE LATE IN THE PERIOD
In the first half of the period, the US bond market was on track to deliver
solid returns. Bond investors responded favorably to short-term interest rate
hikes by the Federal Reserve Board (the Fed) because they indicated that the Fed
was on top of inflation. Yields on long-term bonds edged lower--and prices rose.
However, halfway through the period, investors were unsettled by Fed Chairman
Greenspan's comments that the movement of short and long-term rates in opposite
directions represented a conundrum for the markets, and bonds reversed course in
the last six weeks of the period. The Lehman Brothers Aggregate Bond Index
returned 0.47% for the period. Municipal bonds outperformed taxable bonds,
Treasury bonds outperformed corporate bonds and high-yield bonds led the fixed
income markets. The Merrill Lynch US High Yield, Cash Pay Index returned 2.96%.
HIGHER SHORT-TERM INTEREST RATES
The Fed made good on its announced intentions to continue to raise the federal
funds rate, a key short-term rate, in an effort to balance economic growth
against inflationary pressures. After four one-quarter percentage point
increases during this reporting period, the fed funds rate stood at 2.75%. 1
Last year the Fed indicated that it would continue to raise short-term interest
rates at a measured pace. However, in its March meeting, the Fed hinted at the
possibility of a more aggressive pace in months to come.
1 On May 3, 2005, the federal funds rate was raised to 3.00%.
1
[SIDEBAR]
PERFORMANCE OF A $10,000 INVESTMENT
04/01/95 - 03/31/05 ($)
SALES CHARGE WITHOUT WITH
- ------------------------------------------
CLASS A 21,405 20,179
- ------------------------------------------
CLASS B 20,446 20,446
- ------------------------------------------
CLASS C 20,451 20,451
- ------------------------------------------
CLASS G 19,982 19,982
- ------------------------------------------
CLASS T 21,320 20,098
- ------------------------------------------
CLASS Z 21,771 N/A
Performance data quoted represents past performance and current performance may
be lower or higher. Past performance is no guarantee of future results. The
investment return and principal value will fluctuate so that shares, when
redeemed, may be worth more or less than the original cost. Please visit
www.columbiafunds.com for daily and most recent month-end performance updates.
PERFORMANCE INFORMATION_________________________________________________________
COLUMBIA ASSET ALLOCATION FUND
VALUE OF A $10,000 INVESTMENT 04/01/95 - 03/31/05
[MOUNTAIN CHART]
CLASS A SHARES CLASS A SHARES LEHMAN BROTHERS
WITHOUT SALES CHARGE WITH SALES CHARGE S&P 500 INDEX AGGREGATE BOND INDEX
-------------------- ----------------- ------------- --------------------
4/1995 10,000 9,425 10,000 10,000
10,295 9,703 10,294 10,140
10,742 10,124 10,706 10,532
10,941 10,311 10,954 10,609
11,130 10,490 11,318 10,586
11,165 10,523 11,346 10,714
11,547 10,883 11,825 10,818
11,592 10,926 11,782 10,959
11,990 11,300 12,300 11,123
12,140 11,442 12,537 11,279
12,397 11,684 12,963 11,353
12,388 11,676 13,084 11,156
12,479 11,761 13,209 11,078
12,571 11,848 13,404 11,015
12,775 12,040 13,749 10,993
12,917 12,174 13,802 11,141
12,573 11,850 13,192 11,171
12,749 12,016 13,470 11,152
13,265 12,503 14,228 11,346
13,555 12,775 14,621 11,598
14,096 13,285 15,726 11,796
13,974 13,171 15,415 11,686
14,431 13,601 16,378 11,723
14,382 13,555 16,506 11,752
14,057 13,249 15,828 11,621
14,594 13,755 16,773 11,796
15,073 14,206 17,794 11,908
15,484 14,594 18,591 12,050
16,330 15,391 20,071 12,375
15,799 14,891 18,947 12,270
16,245 15,311 19,985 12,450
16,293 15,356 19,318 12,631
16,492 15,544 20,212 12,689
16,733 15,771 20,560 12,817
16,969 15,993 20,788 12,981
17,517 16,510 22,287 12,971
18,013 16,977 23,428 13,015
18,207 17,160 23,665 13,082
17,990 16,956 23,258 13,207
18,325 17,271 24,202 13,319
18,162 17,118 23,946 13,347
16,965 15,990 20,483 13,564
17,628 16,615 21,796 13,882
18,547 17,480 23,568 13,808
19,061 17,965 24,996 13,887
19,707 18,574 26,436 13,929
20,091 18,936 27,541 14,027
19,639 18,510 26,684 13,782
20,256 19,091 27,752 13,858
20,414 19,240 28,826 13,902
19,914 18,769 28,146 13,780
20,370 19,198 29,708 13,736
20,141 18,983 28,781 13,677
19,914 18,769 28,640 13,670
19,729 18,594 27,855 13,828
20,348 19,178 29,618 13,880
20,588 19,404 30,219 13,878
21,169 19,952 31,999 13,812
20,580 19,397 30,393 13,766
20,650 19,463 29,819 13,933
22,005 20,740 32,735 14,116
21,921 20,661 31,750 14,075
21,426 20,194 31,099 14,068
22,274 20,994 31,867 14,361
22,370 21,084 31,370 14,492
23,332 21,991 33,318 14,702
22,630 21,329 31,559 14,795
22,415 21,126 31,426 14,892
21,424 20,192 28,950 15,136
21,583 20,342 29,091 15,418
22,172 20,897 30,124 15,671
20,879 19,679 27,377 15,807
19,986 18,836 25,641 15,886
20,755 19,562 27,634 15,819
20,780 19,585 27,819 15,914
20,275 19,109 27,143 15,975
20,224 19,061 26,877 16,333
19,579 18,453 25,194 16,520
18,614 17,544 23,159 16,714
19,035 17,940 23,601 17,063
19,773 18,636 25,411 16,828
19,805 18,666 25,635 16,720
19,268 18,160 25,260 16,855
18,796 17,715 24,773 17,019
19,198 18,094 25,704 16,736
18,442 17,381 24,147 17,061
18,351 17,296 23,968 17,206
17,421 16,419 22,261 17,354
16,817 15,850 20,527 17,564
16,946 15,972 20,661 17,861
15,756 14,850 18,415 18,150
16,650 15,692 20,035 18,067
17,228 16,237 21,215 18,061
16,718 15,756 19,970 18,435
16,380 15,438 19,447 18,452
16,185 15,254 19,155 18,706
16,255 15,320 19,341 18,691
17,066 16,084 20,935 18,847
17,902 16,873 22,038 19,197
18,133 17,090 22,320 19,159
18,173 17,128 22,713 18,515
18,487 17,424 23,156 18,637
18,450 17,389 22,910 19,131
19,042 17,947 24,207 18,953
19,240 18,134 24,420 18,999
19,902 18,758 25,700 19,192
20,207 19,045 26,173 19,346
20,459 19,283 26,536 19,555
20,486 19,308 26,136 19,702
19,939 18,793 25,725 19,189
20,005 18,855 26,078 19,113
20,347 19,177 26,584 19,221
19,800 18,661 25,704 19,412
19,893 18,749 25,807 19,783
20,195 19,034 26,085 19,836
20,516 19,336 26,484 20,003
21,187 19,969 27,557 19,843
21,746 20,496 28,494 20,025
21,422 20,190 27,799 20,151
21,746 20,495 28,382 20,032
3/2005 21,405 20,179 27,873 19,932
The graph and table do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares. The Standard &
Poor's (S&P) 500 Index is an unmanaged index that tracks the performance of 500
widely held, large-capitalization U.S. stocks. The Lehman Brothers Aggregate
Bond Index is a market value-weighted index that tracks the daily price, coupon,
pay-downs, and total return performance of fixed-rate, publicly placed,
dollar-denominated, non-convertible investment grade debt issues with at least
$250 million par amount outstanding and with at least one year to final
maturity. Unlike the fund, indices are not investments, do not incur fees or
expenses and are not professionally managed. It is not possible to invest
directly in an index. Securities in the fund may not match those in an index.
AVERAGE ANNUAL TOTAL RETURN AS OF 03/31/05 (%)
SHARE CLASS A B C G T Z
- -----------------------------------------------------------------------------------------------------------------------------------
INCEPTION 11/01/98 11/01/98 11/18/02 03/04/96 12/30/91 12/30/91
- -----------------------------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- -----------------------------------------------------------------------------------------------------------------------------------
6-month (cumulative) 5.96 -0.14 5.50 0.50 5.57 4.57 5.53 0.53 5.93 -0.17 6.02
- -----------------------------------------------------------------------------------------------------------------------------------
1-year 4.46 -1.56 3.69 -1.31 3.69 2.69 3.74 -1.26 4.47 -1.54 4.72
- -----------------------------------------------------------------------------------------------------------------------------------
5-year -0.56 -1.73 -1.26 -1.62 -1.26 -1.26 -1.28 -1.82 -0.59 -1.76 -0.34
- -----------------------------------------------------------------------------------------------------------------------------------
10-year 7.91 7.27 7.41 7.41 7.42 7.42 7.17 7.17 7.86 7.23 8.09
THE "WITH SALES CHARGE" RETURNS INCLUDE THE MAXIMUM INITIAL SALES CHARGE OF
5.75% FOR CLASS A AND T SHARES, MAXIMUM CONTINGENT DEFERRED SALES CHARGE OF
5.00% FOR CLASS B AND G SHARES AND 1.00% FOR CLASS C 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 returns for class A and class B shares include the returns of Prime A shares
(for class A shares) and Prime B shares (for class B shares) of the Galaxy Asset
Allocation Fund for periods prior to November 18, 2002. The returns shown for
class A shares and class B shares also include the returns of Retail A shares of
the Galaxy Asset Allocation Fund (adjusted, as necessary, to reflect the sales
charges applicable to class A shares and class B shares, respectively), for
periods prior to the inception of Prime A shares (November 1, 1998) and Prime B
shares (November 1, 1998). Class A and class B shares generally would have had
substantially similar returns to Retail A shares because they would have been
invested in the same portfolio of securities, although returns would have been
lower to the extent that expenses for class A and class B shares exceed expenses
paid by Retail A shares. The returns shown for class C shares include the
returns of Prime B shares of the Galaxy Asset Allocation Fund (adjusted to
reflect the sales charge applicable to class C shares) for periods prior to
November 18, 2002, the date on which class C shares were initially offered by
the fund. The returns shown for class C shares also include the returns of
Retail A shares of the Galaxy Asset Allocation Fund (adjusted to reflect the
sales charges applicable to class C shares) for periods prior to the date of
inception of Prime B shares (November 1, 1998). Class C shares generally would
have had substantially similar returns because they would have been invested in
the same portfolio of securities, although the returns would have been lower to
the extent that expenses for class C shares exceed expenses paid by Retail A and
Prime B shares. Retail A shares of the Galaxy Asset Allocation Fund were
initially offered on December 30, 1991. Class A, B and C shares were initially
offered on November 18, 2002. The returns for class G and class T shares include
the returns of Retail A shares (for class T shares) and Retail B shares (for
class G shares) of the Galaxy Asset Allocation Fund for periods prior to
November 18, 2002, the date on which class T and class G shares were initially
offered by the fund. The returns shown for class G shares also include the
returns of Retail A shares (adjusted to reflect sales charges applicable to
class G shares) for periods prior to the inception of Retail B shares of the
Galaxy Asset Allocation Fund (March 4, 1996). Retail A shares of the Galaxy
Asset Allocation Fund were initially offered on December 30, 1991. Class G
shares generally would have had substantially similar returns to Retail A shares
because they would have been invested in the same portfolio of securities,
although the returns would have been lower to the extent that expenses for class
G shares exceed expenses paid by Retail A shares. The returns for class Z shares
include returns of Trust shares of the Galaxy Asset Allocation Fund for periods
prior to November 18, 2002, the date on which class Z shares were initially
offered by the fund. Trust shares of the Galaxy Asset Allocation Fund were
initially offered on December 30, 1991.
2
ESTIMATING YOUR ACTUAL EXPENSES
To estimate the expenses that you paid over the period, first you will need your
account balance at the end of the period:
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA FUNDS
SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT
WWW.COLUMBIAFUNDS.COM OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM THEIR BROKERAGE
FIRM, CONTACT YOUR BROKERAGE FIRM TO OBTAIN YOUR ACCOUNT BALANCE
1. DIVIDE YOUR ENDING ACCOUNT BALANCE BY $1,000. FOR EXAMPLE, IF AN ACCOUNT
BALANCE WAS $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6
2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE
PERIOD," LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER
IS IN THE COLUMN LABELED "ACTUAL." MULTIPLY THIS NUMBER BY THE RESULT FROM
STEP 1. YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR
ACCOUNT DURING THE PERIOD
UNDERSTANDING YOUR EXPENSES_____________________________________________________
COLUMBIA ASSET ALLOCATION FUND
As a fund shareholder, you incur two types of costs. There are transaction
costs, which generally include sales charges on purchases and may include
redemption or exchange fees. There are also ongoing costs, which generally
include investment advisory fees, Rule 12b-1 fees, and other fund expenses. The
information on this page is intended to help you understand your ongoing costs
of investing in the fund and to compare these costs with the ongoing costs of
investing in other mutual funds.
ANALYZING YOUR FUND'S EXPENSES BY SHARE CLASS
To illustrate these ongoing costs, we have provided an example and calculated
the expenses paid by investors in each share class during the reporting period.
The information in the following table is based on an initial investment of
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
10/01/04 - 03/31/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
- -------------------------------------------------------------------------------------------------------------------------
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
- -------------------------------------------------------------------------------------------------------------------------
CLASS A 1,000.00 1,000.00 1,059.59 1,018.05 7.09 6.94 1.38
- -------------------------------------------------------------------------------------------------------------------------
CLASS B 1,000.00 1,000.00 1,055.00 1,014.31 10.91 10.70 2.13
- -------------------------------------------------------------------------------------------------------------------------
CLASS C 1,000.00 1,000.00 1,055.65 1,014.31 10.92 10.70 2.13
- -------------------------------------------------------------------------------------------------------------------------
CLASS G 1,000.00 1,000.00 1,055.25 1,014.56 10.66 10.45 2.08
- -------------------------------------------------------------------------------------------------------------------------
CLASS T 1,000.00 1,000.00 1,059.29 1,017.80 7.34 7.19 1.43
- -------------------------------------------------------------------------------------------------------------------------
CLASS Z 1,000.00 1,000.00 1,060.23 1,019.30 5.80 5.69 1.13
Expenses paid during the period are equal to the fund's annualized expense
ratio, multiplied by the average account value over the period, then multiplied
by the number of days in the fund's most recent fiscal half-year and divided by
365.
It is important to note that the expense amounts shown in the table are meant to
highlight only ongoing costs of investing in the fund and do not reflect any
transactional costs, such as sales charges, redemption or exchange fees.
Therefore, the hypothetical examples provided may not help you determine the
relative total costs of owning shares of different funds. If these transactional
costs were included, your costs would have been higher.
COMPARE WITH OTHER FUNDS
Since all mutual fund companies are required to include the same hypothetical
calculations about expenses in shareholder reports, you can use this information
to compare the ongoing cost of investing in the fund with other funds. To do so,
compare the 5% hypothetical example with the 5% hypothetical examples that
appear in the shareholder reports of other funds. As you compare hypothetical
examples of other funds, it is important to note that hypothetical examples are
meant to highlight the continuing cost of investing in a fund and do not reflect
any transactional costs, such as sales charges or redemption or exchange fees.
3
[SIDEBAR]
SUMMARY
o FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2005, THE FUND'S CLASS A SHARES
RETURNED 5.96% WITHOUT SALES CHARGE.
o THE FUND'S RETURN FELL BETWEEN THE RETURNS OF ITS BENCHMARKS, THE S&P 500
INDEX AND THE LEHMAN BROTHERS AGGREGATE BOND INDEX. IT WAS HIGHER THAN THE
MORNINGSTAR(R) MODERATE ASSET ALLOCATION CATEGORY AVERAGE OF 5.45%.
o THE FUND'S EMPHASIS ON STOCKS OVER BONDS HELPED PERFORMANCE, AS DID
HOLDINGS IN REAL ESTATE INVESTMENT TRUSTS (REITS), INTERNATIONAL STOCKS
AND SMALL- AND MID-CAP DOMESTIC ISSUES. CORPORATE BONDS ALSO CONTRIBUTED
TO THE FUND'S POSITIVE RETURN.
[UP ARROW] [UP ARROW] [UP ARROW]
LEHMAN
BROTHERS
CLASS A S&P 500 AGGREGATE
SHARES INDEX BOND INDEX
5.96% 6.88% 0.47%
OBJECTIVE
Seeks a high total return by
providing both a current level of
income greater than that provided
by popular stock market averages, as
well as long-term growth in the
value of the fund's assets.
TOTAL NET ASSETS
$403.8 million
NET ASSET VALUE PER SHARE
AS OF 03/31/05 ($)
CLASS A 15.82
- ------------------------------------------
CLASS B 15.81
- ------------------------------------------
CLASS C 15.82
- ------------------------------------------
CLASS G 15.81
- ------------------------------------------
CLASS T 15.83
- ------------------------------------------
CLASS Z 15.81
DISTRIBUTIONS DECLARED PER SHARE
10/01/04 - 03/31/05 ($)
CLASS A 0.14
- ------------------------------------------
CLASS B 0.08
- ------------------------------------------
CLASS C 0.08
- ------------------------------------------
CLASS G 0.08
- ------------------------------------------
CLASS T 0.13
- ------------------------------------------
CLASS Z 0.16
PORTFOLIO MANAGER'S REPORT______________________________________________________
COLUMBIA ASSET ALLOCATION FUND
For the six-month period ended March 31, 2005, Columbia Asset Allocation Fund
class A shares returned 5.96% without sales charge. That compares with a 6.88%
return for the S&P 500 Index and a 0.47% return for the Lehman Brothers
Aggregate Bond Index. Because the fund invests in a mix of stocks and bonds, we
expect its performance to fall between that of its two benchmarks. The fund's
return was higher than the average return of its peer group, the Morningstar(R)
Moderate Asset Allocation Category, which was 5.45%. 1 We believe that the fund
did better than its peer group because it held a higher percentage of the fund's
assets in equities (64%) than in bonds (36%). Large-cap stocks, which account
for over half of the fund's equity holdings, also held up better than smaller
issues when the market lost ground during the first quarter of 2005. Holdings in
real estate investment trusts (REITs), international stocks and corporate bonds,
including high-yield issues, also aided performance.
AN EQUITY EMPHASIS
The fund's emphasis on equities was rewarded during the period, as the economy
continued to grow at a solid pace and the stock market benefited from this
positive environment. Continued strong growth in corporate profits bolstered our
decision to hold a heavy equity weight in the fund, as returns on bonds have
faltered. Corporate bonds and particularly high-yield issues, in which the fund
holds a substantial position, were the exception. Holdings in asset-backed debt
also boosted the fund's return. The fund's international holdings were a
positive, as international markets generally outperformed domestic equities
during this reporting period. We kept the fund's overseas exposure steady while
monitoring foreign economies, particularly Europe and Japan, for further signs
of strength to support enthusiasm for these issues going forward.
ENERGY, INDUSTRIAL STOCKS HELP PERFORMANCE
In the domestic equity area, the energy sector, including gas and oil stocks,
was the largest contributor to the fund's performance over the six-month period.
The continued upward trajectory in oil prices bolstered the fund's holdings in
Exxon Mobil and ConocoPhillips. Industrials, including General Electric, also
helped drive the fund's gains, as did Altria Group in the consumer staples
sector.
FINANCIAL AND HEALTH CARE STOCKS DETRACTED FROM PERFORMANCE
Financial and health care holdings proved the weakest areas of the fund for the
period. Questions about insurance company accounting procedures detracted from
several insurance stocks. Drug recall news hurt some of the large
pharmaceuticals, although this was mitigated
1 (C)2005, Morningstar, Inc. All rights reserved. The information contained
herein is the proprietary information of Morningstar, Inc., may not be
copied or redistributed for any purpose and may only be used for
noncommercial, personal purposes. The information contained herein is not
represented or warranted to be accurate, correct, complete or timely.
Morningstar, Inc. shall not be responsible for investment decisions,
damages or other losses resulting from the use of this information. Past
performance is no guarantee of future performance. Morningstar, Inc. has
not granted consent for it to be considered or deemed an "expert" under
the Securities Act of 1933. Morningstar Categories compare the performance
of funds with similar investment objectives and strategies.
4
[SIDEBAR]
TOP 5 EQUITY SECTORS AS OF 03/31/05 (%)
FINANCIALS 12.1
- ------------------------------------------
HEALTH CARE 9.1
- ------------------------------------------
CONSUMER DISCRETIONARY 9.1
- ------------------------------------------
INFORMATION TECHNOLOGY 9.1
- ------------------------------------------
INDUSTRIALS 7.8
TOP 10 EQUITY HOLDINGS
AS OF 03/31/05 (%)
GENERAL ELECTRIC 1.6
- ------------------------------------------
CITIGROUP 1.2
- ------------------------------------------
JOHNSON & JOHNSON 1.2
- ------------------------------------------
MICROSOFT 1.1
- ------------------------------------------
EXXON MOBIL 1.0
- ------------------------------------------
PEPSICO 0.8
- ------------------------------------------
ALTRIA GROUP 0.8
- ------------------------------------------
INTERNATIONAL BUSINESS MACHINES 0.8
- ------------------------------------------
BP PLC 0.7
- ------------------------------------------
WELLS FARGO 0.7
PORTFOLIO STRUCTURE AS OF 03/31/05 (%)
COMMON STOCKS 64.1
- ------------------------------------------
CORPORATE FIXED-INCOME BONDS
AND NOTES 12.0
- ------------------------------------------
MORTGAGE-BACKED SECURITIES 10.5
- ------------------------------------------
ASSET-BACKED SECURITIES 3.7
- ------------------------------------------
GOVERNMENT AGENCIES & OBLIGATIONS 3.2
- ------------------------------------------
INVESTMENT MANAGEMENT COMPANIES 3.0
- ------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS 2.0
- ------------------------------------------
MUNICIPAL BONDS 0.2
- ------------------------------------------
PREFERRED STOCKS 0.1
- ------------------------------------------
CONVERTIBLE PREFERRED STOCK 0.0
- ------------------------------------------
CASH EQUIVALENTS, NET OTHER ASSETS
AND LIABILITIES 1.2
HOLDINGS DISCUSSED IN THIS REPORT
AS OF 03/31/05 (%)
EXXON MOBIL 1.0
- ------------------------------------------
CONOCOPHILLIPS 0.6
- ------------------------------------------
GENERAL ELECTRIC 1.6
- ------------------------------------------
ALTRIA GROUP 0.8
- ------------------------------------------
JOHNSON & JOHNSON 1.2
- ------------------------------------------
APPLE COMPUTER* 0.0
Your fund is actively managed and the composition of its portfolio will change
over time. Information provided is calculated as a percentage of net assets.
* Apple Computer accounted for 0.04% of net assets.
________________________________________________________________________________
COLUMBIA ASSET ALLOCATION FUND
somewhat by strong performance from Johnson & Johnson. The fund's relatively
light allocation to the materials sector--which performed well--also detracted.
While returns in the technology sector were not very strong, Apple Computer,
with its successful iPod, was an outstanding performer.
SHIFTING TOWARDS GROWTH
During the period, we continued to shift money out of smaller capitalization
stocks and value stocks, because we believe relative valuations in these areas
have peaked after several years of positive performance. We have put this money
to work in large-cap and mid-cap growth stocks, which we believe have the
potential to outperform as corporate earnings growth slows. In particular, we
are seeking dividend-paying stocks that have the potential to increase their
dividends, something we believe investors will continue to reward. We also
reduced the fund's REIT exposure to a very small position, based on our belief
that outstanding performance in this sector has run its course.
GROWING ECONOMY DRIVES STOCK MARKET
We believe that the United States is likely to experience an extended period of
economic expansion and slow, steady corporate profit growth, which should
provide a favorable environment for stocks. As the Federal Reserve Board
continues to ratchet up short-term interest rates, bond prices may decline as
the market discounts a sustained period of higher rates. Against this backdrop,
we continue to favor larger companies and, in particular, growth stocks that we
believe can do well in an environment of somewhat slower growth and in a market
focused on quality and dividends.
[PHOTO OF HARVEY HIRSCHHORN] Harvey Hirschhorn is the lead manager for
Columbia Asset Allocation Fund and has
co-managed the fund since October 2002. He has
been with the advisor or its predecessors or
affiliate organizations since 1973. He is
responsible for allocating the fund's assets
among the various asset classes. The investment
decisions for these asset classes are made by
professionals with expertise in that class.
/s/ Harvey Hirschhorn
Equity investments are affected by stock market fluctuations that occur in
response to economic and business developments.
Investing in high yield securities (commonly known as "junk bonds") offers the
potential for high current income and attractive total return, but involves
certain risks. Changes in economic conditions or other circumstances may
adversely affect a junk bond issuer's ability to make principal and interest
payments. Rising interest rates tend to lower the value of all bonds. High-yield
bonds issued by foreign entities have greater potential risks, including less
regulation, currency fluctuations, economic instability and political
developments.
5
[SIDEBAR]
PERFORMANCE OF A $10,000 INVESTMENT
04/01/95 - 03/31/05 ($)
SALES CHARGE WITHOUT WITH
- ------------------------------------------
CLASS A 22,817 21,500
- ------------------------------------------
CLASS B 21,744 21,744
- ------------------------------------------
CLASS C 21,778 21,778
- ------------------------------------------
CLASS G 21,065 21,065
- ------------------------------------------
CLASS T 22,632 21,326
- ------------------------------------------
CLASS Z 23,567 N/A
Performance data quoted represents past performance and current performance may
be lower or higher. Past performance is no guarantee of future results. The
investment return and principal value will fluctuate so that shares, when
redeemed, may be worth more or less than the original cost. Please visit
www.columbiafunds.com for daily and most recent month-end performance updates.
PERFORMANCE INFORMATION_________________________________________________________
COLUMBIA LARGE CAP GROWTH FUND
VALUE OF A $10,000 INVESTMENT 04/01/95 - 03/31/05
[MOUNTAIN CHART]
CLASS A SHARES CLASS A SHARES RUSSELL 1000
WITHOUT SALES CHARGE WITH SALES CHARGE GROWTH INDEX
-------------------- ----------------- ------------
04/1995 10,000 9,425 10,000
10,300 9,708 10,219
10,688 10,074 10,575
11,026 10,392 10,983
11,367 10,713 11,440
11,312 10,662 11,452
11,751 11,075 11,980
11,812 11,133 11,989
12,297 11,589 12,455
12,373 11,661 12,526
12,784 12,048 12,944
12,951 12,206 13,181
13,040 12,291 13,198
13,292 12,528 13,545
13,592 12,811 14,018
13,602 12,820 14,038
12,869 12,129 13,215
13,162 12,405 13,556
13,902 13,103 14,543
14,237 13,418 14,630
15,195 14,321 15,729
14,908 14,051 15,421
15,644 14,745 16,502
15,317 14,437 16,390
14,878 14,022 15,503
15,689 14,787 16,532
16,768 15,804 17,726
17,279 16,286 18,435
18,784 17,704 20,065
18,166 17,122 18,891
19,113 18,014 19,820
18,740 17,663 19,087
19,173 18,071 19,898
19,445 18,327 20,121
19,620 18,492 20,723
20,911 19,709 22,281
21,988 20,724 23,170
22,402 21,114 23,490
21,611 20,368 22,822
22,309 21,026 24,219
21,974 20,711 24,059
18,338 17,283 20,448
19,700 18,567 22,018
21,501 20,264 23,789
22,660 21,357 25,599
24,411 23,008 27,908
25,480 24,015 29,546
24,448 23,043 28,196
25,840 24,354 29,682
26,331 24,816 29,721
25,601 24,129 28,808
27,606 26,018 30,825
26,736 25,199 29,845
26,367 24,851 30,331
26,111 24,610 29,694
27,388 25,813 31,936
28,429 26,794 33,660
30,760 28,991 37,161
29,616 27,913 35,418
30,439 28,689 37,150
33,498 31,572 39,810
32,966 31,070 37,915
31,743 29,918 36,004
32,717 30,836 38,733
32,367 30,506 37,118
34,756 32,757 40,477
32,990 31,093 36,648
32,420 30,555 34,915
29,310 27,625 29,768
30,325 28,581 28,828
31,055 29,270 30,820
27,891 26,287 25,587
25,582 24,111 22,803
27,434 25,856 25,687
27,560 25,975 25,310
26,372 24,856 24,722
25,937 24,446 24,104
24,189 22,798 22,133
21,847 20,591 19,924
22,555 21,258 20,970
24,247 22,853 22,985
24,625 23,209 22,941
23,746 22,380 22,535
22,969 21,649 21,600
24,490 23,082 22,347
22,981 21,660 20,524
22,444 21,153 20,027
20,455 19,279 18,175
18,948 17,858 17,175
19,084 17,987 17,227
16,969 15,994 15,440
18,352 17,297 16,856
19,334 18,223 17,771
18,006 16,971 16,543
17,536 16,528 16,141
17,354 16,356 16,067
17,538 16,529 16,366
18,865 17,781 17,575
19,884 18,741 18,452
19,964 18,816 18,707
20,147 18,989 19,173
20,663 19,475 19,650
20,136 18,978 19,440
21,236 20,014 20,533
21,499 20,263 20,748
22,002 20,737 21,466
22,380 21,093 21,904
22,517 21,222 22,044
22,253 20,974 21,634
21,635 20,391 21,383
22,219 20,941 21,781
22,574 21,276 22,053
21,109 19,896 20,807
20,835 19,637 20,705
21,258 20,036 20,902
21,670 20,424 21,228
22,689 21,384 21,958
23,608 22,250 22,819
23,013 21,690 22,059
23,220 21,885 22,293
03/2005 22,817 21,500 21,888
The graph and table do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares. The Russell
1000 Growth Index is an unmanaged index that tracks the performance of those
Russell 1000 Index companies with higher price-to-book ratios and higher
forecasted growth values. Unlike the fund, indices are not investments, do not
incur fees or expenses and are not professionally managed. It is not possible to
invest directly in an index. Securities in the fund may not match those in an
index.
AVERAGE ANNUAL TOTAL RETURN AS OF 03/31/05 (%)
SHARE CLASS A B C G T Z
- -----------------------------------------------------------------------------------------------------------------------------------
INCEPTION 11/01/98 11/01/98 11/18/02 03/04/96 12/14/90 12/14/90
- -----------------------------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- -----------------------------------------------------------------------------------------------------------------------------------
6-month (cumulative) 7.38 1.22 6.98 1.98 6.97 5.97 6.97 1.97 7.36 1.17 7.54
- -----------------------------------------------------------------------------------------------------------------------------------
1-year 2.58 -3.34 1.77 -3.23 1.82 0.82 1.83 -3.17 2.47 -3.42 2.80
- -----------------------------------------------------------------------------------------------------------------------------------
5-year -7.39 -8.48 -8.15 -8.47 -8.12 -8.12 -8.27 -8.76 -7.55 -8.64 -7.19
- -----------------------------------------------------------------------------------------------------------------------------------
10-year 8.60 7.96 8.08 8.08 8.09 8.09 7.73 7.73 8.51 7.87 8.95
THE "WITH SALES CHARGE" RETURNS INCLUDE THE MAXIMUM INITIAL SALES CHARGE OF
5.75% FOR CLASS A AND T SHARES, MAXIMUM CONTINGENT DEFERRED SALES CHARGE OF
5.00% FOR CLASS B AND G SHARES AND 1.00% FOR CLASS C 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 returns for class A and class B shares include the returns of Prime A shares
(for class A shares) and Prime B shares (for class B shares) of the Galaxy
Equity Growth Fund for periods prior to November 18, 2002, the date on which
class A and class B shares were initially offered by the fund. The returns shown
for class A shares and class B shares also include the returns of Retail A
shares of the Galaxy Equity Growth Fund (adjusted, as necessary, to reflect the
sales charges applicable to class A shares and class B shares, respectively) for
periods prior to the date of inception of Prime A shares and Prime B shares
(November 1, 1998). Class A and class B shares generally would have had
substantially similar returns to Retail A shares because they would have been
invested in the same portfolio of securities, although returns would have been
lower to the extent that expenses for class A and class B shares exceed expenses
paid by Retail A shares. The returns shown for class C shares include the
returns of Prime B shares of the Galaxy Equity Growth Fund (adjusted to reflect
the sales charge applicable to class C shares) for periods prior to November 18,
2002, the date on which class C shares were initially offered by the fund. The
returns shown for class C shares also include the returns of Retail A shares of
the Galaxy Equity Growth Fund (adjusted to reflect the sales charges applicable
to class C shares) for periods prior to the date of inception of Prime B shares
(November 1, 1998). Class C shares generally would have had substantially
similar returns because they would have been invested in the same portfolio of
securities, although the returns would have been lower to the extent that
expenses for class C shares exceed expenses paid by Retail A and Prime B shares.
The returns for class G and class T shares include the returns of Retail A
shares (for class T shares) and Retail B shares (for class G shares) of the
Galaxy Equity Growth Fund for periods prior to November 18, 2002, the date on
which class T and class G shares were initially offered by the fund. The returns
shown for class G shares also include the returns of Retail A shares (adjusted
to reflect sales charges applicable to class G shares) for periods prior to the
inception of Retail B shares of the Galaxy Equity Growth Fund (March 4, 1996).
Retail A shares were initially offered on December 14, 1990. Class G shares
generally would have had substantially similar returns to Retail A shares
because they would have been invested in the same portfolio of securities,
although the returns would be lower to the extent that expenses for class G
shares exceed expenses paid by Retail A shares. The returns for class Z shares
include returns of Trust shares of the Galaxy Equity Growth Fund for periods
prior to November 18, 2002, the date on which class Z shares were initially
offered by the Fund. Trust shares of the Galaxy Equity Growth Fund were
initially offered on December 14, 1990.
6
[SIDEBAR]
ESTIMATING YOUR ACTUAL EXPENSES
To estimate the expenses that you paid over the period, first you will need your
account balance at the end of the period:
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA FUNDS
SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT
WWW.COLUMBIAFUNDS.COM OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM THEIR BROKERAGE
FIRM, CONTACT YOUR BROKERAGE FIRM TO OBTAIN YOUR ACCOUNT BALANCE
1. DIVIDE YOUR ENDING ACCOUNT BALANCE BY $1,000. FOR EXAMPLE, IF AN ACCOUNT
BALANCE WAS $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6
2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE
PERIOD," LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER
IS IN THE COLUMN LABELED "ACTUAL." MULTIPLY THIS NUMBER BY THE RESULT FROM
STEP 1. YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR
ACCOUNT DURING THE PERIOD
UNDERSTANDING YOUR EXPENSES_____________________________________________________
COLUMBIA LARGE CAP GROWTH FUND
As a fund shareholder, you incur two types of costs. There are transaction
costs, which generally include sales charges on purchases and may include
redemption or exchange fees. There are also ongoing costs, which generally
include investment advisory fees, Rule 12b-1 fees, and other fund expenses. The
information on this page is intended to help you understand your ongoing costs
of investing in the fund and to compare these costs with the ongoing costs of
investing in other mutual funds.
ANALYZING YOUR FUND'S EXPENSES BY SHARE CLASS
To illustrate these ongoing costs, we have provided an example and calculated
the expenses paid by investors in each share class during the reporting period.
The information in the following table is based on an initial investment of
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
10/01/04 - 03/31/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
- -------------------------------------------------------------------------------------------------------------------------
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
- -------------------------------------------------------------------------------------------------------------------------
CLASS A 1,000.00 1,000.00 1,073.85 1,018.60 6.57 6.39 1.27
- -------------------------------------------------------------------------------------------------------------------------
CLASS B 1,000.00 1,000.00 1,069.81 1,014.86 10.42 10.15 2.02
- -------------------------------------------------------------------------------------------------------------------------
CLASS C 1,000.00 1,000.00 1,069.71 1,014.86 10.42 10.15 2.02
- -------------------------------------------------------------------------------------------------------------------------
CLASS G 1,000.00 1,000.00 1,069.71 1,015.11 10.17 9.90 1.97
- -------------------------------------------------------------------------------------------------------------------------
CLASS T 1,000.00 1,000.00 1,073.60 1,018.35 6.82 6.64 1.32
- -------------------------------------------------------------------------------------------------------------------------
CLASS Z 1,000.00 1,000.00 1,075.39 1,019.85 5.28 5.14 1.02
Expenses paid during the period are equal to the fund's annualized expense
ratio, multiplied by the average account value over the period, then multiplied
by the number of days in the fund's most recent fiscal half-year and divided by
365.
It is important to note that the expense amounts shown in the table are meant to
highlight only ongoing costs of investing in the fund and do not reflect any
transactional costs, such as sales charges, redemption or exchange fees.
Therefore, the hypothetical examples provided may not help you determine the
relative total costs of owning shares of different funds. If these transactional
costs were included, your costs would have been higher.
COMPARE WITH OTHER FUNDS
Since all mutual fund companies are required to include the same hypothetical
calculations about expenses in shareholder reports, you can use this information
to compare the ongoing cost of investing in the fund with other funds. To do so,
compare the 5% hypothetical example with the 5% hypothetical examples that
appear in the shareholder reports of other funds. As you compare hypothetical
examples of other funds, it is important to note that hypothetical examples are
meant to highlight the continuing cost of investing in a fund and do not reflect
any transactional costs, such as sales charges or redemption or exchange fees.
7
[SIDEBAR]
SUMMARY
o FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2005, THE FUND'S CLASS A SHARES
RETURNED 7.38% WITHOUT SALES CHARGE.
o THE FUND OUTPACED ITS BENCHMARK, THE RUSSELL 1000 GROWTH INDEX, AS WELL AS
ITS PEER GROUP AVERAGE, THE MORNINGSTAR(R) LARGE GROWTH CATEGORY.
o THE FUND TARGETED LARGE COMPANIES WITH SOLID COMPETITIVE STANDINGS, STRONG
FINANCIAL POSITIONS AND SUPERIOR SALES GROWTH. THIS RESULTED IN STRONG
STOCK SELECTION WHICH WAS A BOON TO RELATIVE PERFORMANCE.
[UP ARROW] [UP ARROW]
RUSSELL 1000
CLASS A SHARES GROWTH INDEX
7.38% 4.71%
OBJECTIVE
Seeks long-term capital appreciation.
TOTAL NET ASSETS
$1,585.9 million
NET ASSET VALUE PER SHARE
AS OF 03/31/05 ($)
CLASS A 19.92
- ------------------------------------------
CLASS B 19.00
- ------------------------------------------
CLASS C 19.03
- ------------------------------------------
CLASS G 18.41
- ------------------------------------------
CLASS T 19.80
- ------------------------------------------
CLASS Z 20.26
DISTRIBUTIONS DECLARED PER SHARE
10/01/04 - 03/31/05 ($)
CLASS A 0.02
- ------------------------------------------
CLASS B 0.00
- ------------------------------------------
CLASS C 0.00
- ------------------------------------------
CLASS G 0.00
- ------------------------------------------
CLASS T 0.02
- ------------------------------------------
CLASS Z 0.03
PORTFOLIO MANAGER'S REPORT______________________________________________________
COLUMBIA LARGE CAP GROWTH FUND
For the six-month period ended March 31, 2005, class A shares of Columbia Large
Cap Growth Fund returned 7.38% without sales charge. The fund beat the Russell
1000 Growth Index, which returned 4.71%. It also outdistanced the average return
of its peer group, the Morningstar(R) Large Growth Category, which was 5.42%. 1
Our focus on large-cap companies with strong competitive positions, high
sustainable profits, good balance sheets and above-average sales growth resulted
in strong stock selection, which drove the fund's returns.
SOLID PICKS IN CONSUMER DISCRETIONARY BOLSTERED RETURNS
Lodging and specialty retailing stocks were among the top contributors to the
fund's gains. Lodging stocks, such as Marriott International, rallied nicely as
travel spending recovered after dropping off in the wake of 9/11. Demand for
rooms grew at a faster rate than supply, which made it possible for lodging
companies to raise their prices. Among specialty retailers, winners included
Chico's FAS and Coach. Chico's is a women's apparel store, while Coach
manufactures and sells handbags and other accessories. Both stocks benefited
from popular product lines, strong sales, good execution and new store
expansion.
IMPROVED OUTLOOK BENEFITED CONSUMER STAPLES, FINANCIAL AND INDUSTRIAL STOCKS
Stock picking was also strong in the consumer staples, financials and
industrials sectors. In consumer staples, Altria Group's stock price (formerly
Philip Morris) rose as it came closer to settling pending tobacco litigation.
Among industrials, Rockwell Automation benefited as companies in both the United
States and China sought to automate their manufacturing processes. The fund's
focus on financial companies with exposure to improving capital markets further
aided returns. Winners included Goldman Sachs Group, which rallied nicely as
merger and acquisition activity increased and the stock market rose. American
International Group, however, was a disappointment though the insurance holdings
overall contributed positively relative to the fund's benchmark.
OVERALL, MODEST RETURNS IN HEALTH CARE SECTOR
Within health care, the fund focused on medical device, specialty product
companies and health insurers. Top performers included Johnson & Johnson and
WellPoint. Johnson & Johnson benefited from strong results in its consumer
products division and from its acquisition of cardiac stent maker Guidant (which
was not in the portfolio). Health insurer WellPoint rallied as it kept premium
increases nicely ahead of rising medical costs. We also did well to underweight
the major drug
1 (C)2005 by Morningstar, Inc. All rights reserved. The information
contained herein is the proprietary information of Morningstar, Inc., may
not be copied or redistributed for any purpose and may only be used for
noncommercial, personal purposes. The information contained herein is not
represented or warranted to be accurate, correct, complete or timely.
Morningstar, Inc. shall not be responsible for investment decisions,
damages or other losses resulting from the use of this information. Past
performance is no guarantee of future performance. Morningstar, Inc. has
not granted consent for it to be considered or deemed an "expert" under
the Securities Act of 1933. Morningstar Categories compare the performance
of funds with similar investment objectives and strategies.
8
[SIDEBAR]
SECTORS AS OF 03/31/05 (%)
HEALTH CARE 25.5
- ------------------------------------------
INFORMATION TECHNOLOGY 23.3
- ------------------------------------------
CONSUMER DISCRETIONARY 19.8
- ------------------------------------------
INDUSTRIALS 11.1
- ------------------------------------------
CONSUMER STAPLES 10.6
- ------------------------------------------
FINANCIALS 7.5
- ------------------------------------------
ENERGY 2.2
Sector breakdown is calculated as a percentage
of total investments excluding short-term investments.
TOP 10 HOLDINGS AS OF 03/31/05 (%)
JOHNSON & JOHNSON 4.5
- ------------------------------------------
MICROSOFT 3.5
- ------------------------------------------
GENERAL ELECTRIC 3.1
- ------------------------------------------
TYCO INTERNATIONAL 2.8
- ------------------------------------------
INTERNATIONAL BUSINESS MACHINES 2.4
- ------------------------------------------
INTEL 2.4
- ------------------------------------------
CISCO SYSTEMS 2.3
- ------------------------------------------
ABBOTT LABORATORIES 2.2
- ------------------------------------------
MARRIOT INTERNATIONAL 2.1
- ------------------------------------------
PEPSICO 2.1
HOLDINGS DISCUSSED IN THIS REPORT
AS OF 03/31/05 (%)
MARRIOTT INTERNATIONAL 2.1
- ------------------------------------------
CHICO'S FAS 1.3
- ------------------------------------------
COACH 1.2
- ------------------------------------------
ALTRIA GROUP 1.6
- ------------------------------------------
ROCKWELL AUTOMATION 1.3
- ------------------------------------------
GOLDMAN SACHS GROUP 1.2
- ------------------------------------------
AMERICAN INTERNATIONAL GROUP 2.0
- ------------------------------------------
JOHNSON & JOHNSON 4.5
- ------------------------------------------
WELLPOINT 1.4
- ------------------------------------------
COGNIZANT TECHNOLOGY SOLUTIONS 0.3
Your fund is actively managed and the composition of its portfolio will change
over time. Holdings are calculated as a percentage of net assets.
________________________________________________________________________________
COLUMBIA LARGE CAP GROWTH FUND
companies, which suffered from investor concerns over patent expirations and a
lack of new blockbuster products. We eliminated our position in Biogen Idec
during the period. The biotechnology company's stock price plummeted when deadly
side effects forced it to withdraw a once-promising new multiple sclerosis drug
from distribution.
INVENTORY CONCERNS RESTRAINED TECH RETURNS
The technology sector's performance was not as strong as the rest of the market.
Early in the period, tech stocks suffered as investors worried about overstocked
inventories, maturing technologies and increased competition. The sector later
rebounded as inventory issues began to dissipate and capital spending intentions
improved. While the fund had a sizeable stake in technology, it was slightly
lower than the sector's position in the Russell 1000 Growth Index. This
underweight position produced returns that were in line with the benchmark.
Cognizant Technology Solutions, a software outsourcing company with operations
in India, was among the fund's top performers.
OUTLOOK REMAINS POSITIVE FOR LARGE-CAP STOCKS
We expect economic and profit growth to support a favorable outlook for
large-cap stocks, although both are likely to be below last year. If inflation
remains in check, as we anticipate, longer-term interest rates are also likely
to stay low. We believe large-cap growth stocks also have the potential to
benefit from valuations that remain attractive relative to large-cap value
stocks.
ABOUT YOUR FUND
Near the end of this reporting period, Columbia Large Cap Growth Fund acquired
the assets of Columbia Growth Fund. Because the two funds had similar investment
styles and portfolio holdings, the acquisition had minimal impact on the
day-to-day operation of the fund.
Paul J. Berlinguet has managed or co-managed the
fund since October 2003 and has been with the
advisor or its predecessors or affiliate
organizations since October 2003.
/s/ Paul J. Berlinguet
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.
Investing in growth stocks incurs the possibility of losses because their prices
are sensitive to changes in current or expected earnings.
9
[SIDEBAR]
PERFORMANCE OF A $10,000 INVESTMENT
04/01/95 - 03/31/05 ($)
SALES CHARGE WITHOUT WITH
- ------------------------------------------
CLASS A 25,404 23,947
- ------------------------------------------
CLASS B 23,797 23,797
- ------------------------------------------
CLASS C 23,761 23,761
- ------------------------------------------
CLASS G 23,813 23,813
- ------------------------------------------
CLASS T 25,335 23,881
- ------------------------------------------
CLASS Z 26,323 N/A
Performance data quoted represents past performance and current performance may
be lower or higher. Past performance is no guarantee of future results. The
investment return and principal value will fluctuate so that shares, when
redeemed, may be worth more or less than the original cost. Please visit
www.columbiafunds.com for daily and most recent month-end performance updates.
PERFORMANCE INFORMATION_________________________________________________________
COLUMBIA DISCIPLINED VALUE FUND
VALUE OF A $10,000 INVESTMENT 04/01/95 - 03/31/05
[MOUNTAIN CHART]
CLASS A SHARES CLASS A SHARES RUSSELL 1000
WITHOUT SALES CHARGE WITH SALES CHARGE VALUE INDEX
-------------------- ----------------- -----------
04/1995 10,000 9,425 10,000
10,119 9,537 10,316
10,577 9,969 10,749
10,850 10,226 10,894
11,080 10,443 11,274
11,136 10,495 11,432
11,478 10,818 11,846
11,421 10,765 11,729
12,019 11,328 12,323
11,953 11,265 12,632
12,341 11,631 13,026
12,566 11,843 13,125
12,595 11,870 13,348
12,820 12,083 13,399
13,149 12,393 13,566
13,109 12,355 13,577
12,597 11,873 13,064
13,031 12,282 13,438
13,667 12,881 13,972
13,876 13,078 14,513
14,946 14,086 15,565
14,475 13,643 15,366
15,152 14,281 16,111
15,093 14,225 16,348
14,412 13,584 15,760
15,218 14,343 16,422
16,378 15,436 17,339
16,661 15,703 18,083
18,217 17,170 19,443
17,676 16,660 18,751
18,541 17,474 19,884
17,968 16,935 19,329
18,372 17,316 20,183
18,478 17,416 20,773
18,730 17,653 20,478
20,236 19,072 21,856
21,260 20,037 23,193
21,451 20,217 23,349
20,625 19,439 23,003
21,227 20,007 23,298
20,520 19,341 22,887
17,159 16,173 19,482
17,985 16,950 20,600
19,743 18,608 22,197
21,179 19,961 23,231
22,867 21,552 24,021
23,807 22,438 24,213
22,716 21,410 23,872
23,423 22,076 24,366
24,104 22,718 26,641
23,757 22,391 26,348
25,145 23,699 27,113
24,141 22,753 26,318
23,002 21,679 25,342
22,050 20,782 24,457
22,632 21,330 25,866
22,756 21,448 25,664
24,395 22,992 25,787
22,877 21,562 24,947
22,390 21,103 23,093
25,148 23,702 25,911
24,733 23,311 25,610
24,548 23,136 25,879
23,244 21,908 24,696
22,845 21,531 25,005
24,962 23,527 26,395
24,004 22,624 26,638
24,405 23,001 27,293
22,201 20,924 26,281
23,615 22,257 27,597
26,033 24,536 27,702
24,141 22,753 26,932
23,388 22,043 25,982
25,352 23,894 27,255
25,862 24,375 27,868
25,003 23,565 27,249
25,371 23,912 27,192
24,056 22,673 26,102
20,917 19,714 24,264
21,898 20,639 24,055
23,862 22,490 25,453
24,750 23,327 26,054
24,300 22,902 25,853
23,201 21,867 25,894
24,874 23,444 27,119
23,598 22,241 26,189
23,598 22,241 26,320
21,134 19,919 24,809
19,065 17,969 22,502
18,922 17,834 22,673
16,619 15,664 20,152
17,231 16,240 21,645
18,256 17,207 23,009
17,393 16,393 22,010
17,160 16,173 21,477
16,513 15,563 20,904
16,585 15,632 20,939
17,970 16,937 22,782
19,140 18,040 24,254
19,446 18,328 24,557
19,680 18,548 24,923
20,075 18,921 25,312
19,824 18,685 25,064
20,941 19,736 26,598
21,175 19,957 26,959
22,308 21,025 28,620
22,743 21,435 29,124
23,105 21,776 29,747
22,922 21,604 29,485
22,431 21,142 28,766
22,613 21,313 29,059
23,258 21,920 29,745
22,818 21,506 29,326
23,110 21,781 29,742
23,300 21,960 30,203
23,409 22,063 30,704
24,528 23,118 32,258
25,301 23,846 33,339
25,043 23,603 32,745
25,909 24,419 33,829
03/2005 25,404 23,947 33,367
The graph and table do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares. The Russell
1000 Value Index is an unmanaged index that measures the performance of those
Russell 1000 Index companies with lower price-to-book ratios and lower
forecasted growth values. Unlike the fund, indices are not investments, do not
incur fees or expenses and are not professionally managed. It is not possible to
invest directly in an index. Securities in the fund may not match those in an
index.
AVERAGE ANNUAL TOTAL RETURN AS OF 03/31/05 (%)
SHARE CLASS A B C G T Z
- ------------------------------------------------------------------------------------------------------------------------------
INCEPTION 11/25/02 11/25/02 11/25/02 03/04/96 09/01/88 09/01/88
- ------------------------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- ------------------------------------------------------------------------------------------------------------------------------
6-month (cumulative) 9.07 2.76 8.64 3.64 8.65 7.65 8.58 3.58 8.95 2.66 9.11
- ------------------------------------------------------------------------------------------------------------------------------
1-year 10.86 4.47 10.08 5.08 10.10 9.10 10.05 5.05 10.81 4.42 11.09
- ------------------------------------------------------------------------------------------------------------------------------
5-year 0.20 -0.97 -0.60 -0.92 -0.63 -0.63 -0.59 -1.06 0.15 -1.03 0.53
- ------------------------------------------------------------------------------------------------------------------------------
10-year 9.77 9.13 9.06 9.06 9.04 9.04 9.06 9.06 9.74 9.10 10.16
THE "WITH SALES CHARGE" RETURNS INCLUDE THE MAXIMUM INITIAL SALES CHARGE OF
5.75% FOR CLASS A AND T SHARES, MAXIMUM CONTINGENT DEFERRED SALES CHARGE OF
5.00% FOR CLASS B AND G SHARES AND 1.00% FOR CLASS C 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.
Class A, class B and class C are newer classes of shares. Their performance
information includes returns of the Retail A shares (for class A shares) and
Retail B shares (for class B and class C shares) of the Galaxy Equity Value Fund
for periods prior to November 25, 2002, the date on which class A, B and C
shares were initially offered by the fund. The returns shown for class B and
class C shares also include the performance of Retail A shares of the Galaxy
Equity Value Fund for periods prior to the inception of Retail B shares (March
4, 1996). Class B and class C shares generally would have had substantially
similar returns to Retail A shares because they would have been invested in the
same portfolio of securities, although the returns would have been lower to the
extent that expenses for class B and class C shares exceed expenses paid by
Retail A shares. The returns have not been restated to reflect any differences
in expenses (such as 12b-1 fees) between any of the predecessor shares and the
newer classes of shares. The returns for class G and class T shares include the
returns of Retail A shares (for class T shares) and Retail B shares (for class G
shares) of the Galaxy Equity Value Fund for periods prior to November 25, 2002,
the date on which class T and class G shares were initially offered by the fund.
The returns shown for class G shares also include the returns of Retail A shares
(adjusted to reflect the sales charge applicable to class G shares), for periods
prior to the inception of Retail B shares of the Galaxy Equity Value Fund (March
4, 1996). Retail A shares were initially offered on September 1, 1988. Class G
shares generally would have had substantially similar returns to Retail A shares
because they would have been invested in the same portfolio of securities,
although the returns would have been lower to the extent that expenses for class
G shares exceed expenses paid by Retail A shares. The returns for class Z shares
include returns of Trust shares of the Galaxy Equity Value Fund for periods
prior to November 25, 2002, the date on which class Z shares were initially
offered by the fund.
10
[SIDEBAR]
ESTIMATING YOUR ACTUAL EXPENSES
To estimate the expenses that you paid over the period, first you will need your
account balance at the end of the period:
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA FUNDS
SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT
WWW.COLUMBIAFUNDS.COM OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM THEIR BROKERAGE
FIRM, CONTACT YOUR BROKERAGE FIRM TO OBTAIN YOUR ACCOUNT BALANCE
1. DIVIDE YOUR ENDING ACCOUNT BALANCE BY $1,000. FOR EXAMPLE, IF AN ACCOUNT
BALANCE WAS $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6
2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE
PERIOD," LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER
IS IN THE COLUMN LABELED "ACTUAL." MULTIPLY THIS NUMBER BY THE RESULT FROM
STEP 1. YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR
ACCOUNT DURING THE PERIOD
UNDERSTANDING YOUR EXPENSES_____________________________________________________
COLUMBIA DISCIPLINED VALUE FUND
As a fund shareholder, you incur two types of costs. There are transaction
costs, which generally include sales charges on purchases and may include
redemption or exchange fees. There are also ongoing costs, which generally
include investment advisory fees, Rule 12b-1 fees, and other fund expenses. The
information on this page is intended to help you understand your ongoing costs
of investing in the fund and to compare these costs with the ongoing costs of
investing in other mutual funds.
ANALYZING YOUR FUND'S EXPENSES BY SHARE CLASS
To illustrate these ongoing costs, we have provided an example and calculated
the expenses paid by investors in each share class during the reporting period.
The information in the following table is based on an initial investment of
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
10/01/04 - 03/31/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
- -----------------------------------------------------------------------------------------------------------------------------
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
- -----------------------------------------------------------------------------------------------------------------------------
CLASS A 1,000.00 1,000.00 1,090.65 1,018.65 6.57 6.34 1.26
- -----------------------------------------------------------------------------------------------------------------------------
CLASS B 1,000.00 1,000.00 1,086.41 1,014.91 10.46 10.10 2.01
- -----------------------------------------------------------------------------------------------------------------------------
CLASS C 1,000.00 1,000.00 1,086.56 1,014.91 10.46 10.10 2.01
- -----------------------------------------------------------------------------------------------------------------------------
CLASS G 1,000.00 1,000.00 1,085.76 1,015.16 10.19 9.85 1.96
- -----------------------------------------------------------------------------------------------------------------------------
CLASS T 1,000.00 1,000.00 1,089.50 1,018.40 6.82 6.59 1.31
- -----------------------------------------------------------------------------------------------------------------------------
CLASS Z 1,000.00 1,000.00 1,091.05 1,019.90 5.27 5.09 1.01
Expenses paid during the period are equal to the fund's annualized expense
ratio, multiplied by the average account value over the period, then multiplied
by the number of days in the fund's most recent fiscal half-year and divided by
365.
It is important to note that the expense amounts shown in the table are meant to
highlight only ongoing costs of investing in the fund and do not reflect any
transactional costs, such as sales charges, redemption or exchange fees.
Therefore, the hypothetical examples provided may not help you determine the
relative total costs of owning shares of different funds. If these transactional
costs were included, your costs would have been higher.
COMPARE WITH OTHER FUNDS
Since all mutual fund companies are required to include the same hypothetical
calculations about expenses in shareholder reports, you can use this information
to compare the ongoing cost of investing in the fund with other funds. To do so,
compare the 5% hypothetical example with the 5% hypothetical examples that
appear in the shareholder reports of other funds. As you compare hypothetical
examples of other funds, it is important to note that hypothetical examples are
meant to highlight the continuing cost of investing in a fund and do not reflect
any transactional costs, such as sales charges or redemption or exchange fees.
11
[SIDEBAR]
SUMMARY
o FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2005, THE FUND'S CLASS A SHARES
RETURNED 9.07% WITHOUT SALES CHARGE.
o THE FUND, ITS BENCHMARK AND PEER GROUP DELIVERED SOLID RESULTS, BUOYED BY
A STOCK MARKET RALLY IN THE FOURTH QUARTER OF 2004.
o ENERGY, RETAIL AND HEALTH CARE STOCKS WERE AMONG THE FUND'S BEST
PERFORMERS. DISAPPOINTING PERFORMANCE FROM THE FUND'S FINANCIAL SERVICES
HOLDINGS ACCOUNTED FOR ITS SHORTFALL RELATIVE TO ITS BENCHMARK.
[UP ARROW] [UP ARROW]
RUSSELL 1000
CLASS A SHARES VALUE INDEX
9.07% 10.48%
OBJECTIVE
Seeks long-term capital
appreciation, with income
as a secondary goal.
TOTAL NET ASSETS
$439.0 million
NET ASSET VALUE PER SHARE
AS OF 03/31/05 ($)
CLASS A 13.76
- ------------------------------------------
CLASS B 13.16
- ------------------------------------------
CLASS C 13.14
- ------------------------------------------
CLASS G 13.16
- ------------------------------------------
CLASS T 13.76
- ------------------------------------------
CLASS Z 14.01
DISTRIBUTIONS DECLARED PER SHARE
10/01/04 - 03/31/05 ($)
CLASS A 0.10
- ------------------------------------------
CLASS B 0.05
- ------------------------------------------
CLASS C 0.05
- ------------------------------------------
CLASS G 0.05
- ------------------------------------------
CLASS T 0.10
- ------------------------------------------
CLASS Z 0.12
PORTFOLIO MANAGER'S REPORT______________________________________________________
COLUMBIA DISCIPLINED VALUE FUND
For the six months ended March 31, 2005, Columbia Disciplined Value Fund class A
shares returned 9.07% without sales charge. Over the same period, the Russell
1000 Value Index returned 10.48% and the Morningstar(R) Large Value Category
returned an average 8.39%. 1 The fund's performance got a nice boost from its
energy-related holdings as well as selected retail and health care stocks.
Financial services holdings did not work out as well. Regulatory investigation
and subsequent changes affected insurance companies in that sector and detracted
from performance relative to the fund's benchmark.
PROFITABLE COMPANIES SHOWED THEIR VALUE
Despite prolonged uncertainties about the ongoing conflict in Iraq, higher
interest rates and elevated energy costs, the US stock market rallied in the
fourth quarter of 2004 to help the fund deliver a solid return for the period.
Energy stocks boosted the fund's performance, as the price of oil and gas rose
and demand from emerging market economies increased. In that regard, Devon
Energy, an independent oil and natural gas production and exploration company
benefited from increased production and higher prices for oil and gas. The stock
enjoyed a significant gain over the period.
Other strong performers for the period included Barnes & Noble and Toys "R" Us.
We like Barnes & Nobles' earnest approach to delivering on its core business
plan to sell books. While it tested the consumer waters with an electronic
gaming division, GameStop, it spun that business off at a profit and returned to
its book focus. Toys "R" Us, another successful retailer, announced in March
that it is to be acquired by a strategic investment group. This news propelled
the company to a double-digit gain for the fund.
The health care sector produced the fund's most significant performance for the
period--boosted by Medco Health Solutions, a leading US pharmacy benefit
manager. Its subscriber network has been growing at a strong pace as consumers
enjoy the ease and efficiency of Medco's services. Medco posted a 60% gain for
the fund for the period.
EXTERNAL EVENTS BRING UNEXPECTED PRESSURE
Investments in financial services and information technology stocks dampened the
fund's otherwise impressive performance. In the financial services sector, the
fund was hurt by its holdings in American International Group as the New York
Attorney General launched
1 (C)2005, Morningstar, Inc. All rights reserved. The information contained
herein is the proprietary information of Morningstar, Inc., may not be
copied or redistributed for any purpose and may only be used for
noncommercial, personal purposes. The information contained herein is not
represented or warranted to be accurate, correct, complete or timely.
Morningstar, Inc. shall not be responsible for investment decisions,
damages or other losses resulting from the use of this information. Past
performance is no guarantee of future performance. Morningstar, Inc. has
not granted consent for it to be considered or deemed an "expert" under
the Securities Act of 1933. Morningstar Categories compare the performance
of funds with similar investment objectives and strategies.
12
[SIDEBAR]
SECTORS AS OF 03/31/05 (%)
FINANCIALS 30.9
- ------------------------------------------
ENERGY 13.2
- ------------------------------------------
CONSUMER DISCRETIONARY 10.2
- ------------------------------------------
INDUSTRIALS 9.5
- ------------------------------------------
CONSUMER STAPLES 8.0
- ------------------------------------------
INFORMATION TECHNOLOGY 7.9
- ------------------------------------------
UTILITIES 6.4
- ------------------------------------------
MATERIALS 6.3
- ------------------------------------------
TELECOMMUNICATION SERVICES 4.8
- ------------------------------------------
HEALTH CARE 2.8
Sector breakdown is calculated as a percentage
of total investments excluding short-term investments.
TOP 10 HOLDINGS AS OF 03/31/05 (%)
EXXON MOBIL 5.4
- ------------------------------------------
GENERAL ELECTRIC 5.2
- ------------------------------------------
JPMORGAN CHASE 4.3
- ------------------------------------------
SBC COMMUNICATIONS 3.7
- ------------------------------------------
WACHOVIA 3.7
- ------------------------------------------
INTERNATIONAL BUSINESS MACHINES 3.4
- ------------------------------------------
PRUDENTIAL FINANCIAL 3.0
- ------------------------------------------
HARTFORD FINANCIAL SERVICES GROUP 2.8
- ------------------------------------------
AMERADA HESS 2.8
- ------------------------------------------
DUKE ENERGY 2.8
HOLDINGS DISCUSSED IN THIS REPORT
AS OF 03/31/05 (%)
DEVON ENERGY 2.4
- ------------------------------------------
BARNES & NOBLE 1.5
- ------------------------------------------
TOYS "R" US 1.0
- ------------------------------------------
MEDCO HEALTH SOLUTIONS 1.3
- ------------------------------------------
AMERICAN INTERNATIONAL GROUP 2.7
- ------------------------------------------
JPMORGAN CHASE 4.3
- ------------------------------------------
HEWLETT-PACKARD 0.6
Your fund is actively managed and the composition of its portfolio will change
over time. Holdings are calculated as a percentage of net assets.
________________________________________________________________________________
COLUMBIA DISCIPLINED VALUE FUND
investigations into its insurance division. J.P. Morgan Chase also detracted
from fund performance as it struggles to process its acquisition of Bank One. In
the technology sector, companies posted lackluster business growth over the
six-month period. The only technology holding that showed a strong return was
Hewlett-Packard (HP), but its rise was due primarily to the market's positive
response to upper management changes. The fund was underweight in HP.
CONTINUED VALUE IN LARGE CAPS
We believe that large-cap companies have the potential to hold their own in the
higher interest-rate environment that we envision for the year to come. As
always, we seek to identify high quality large-cap companies that we believe can
deliver on operating earnings and appear to have a positive catalyst working for
them. Our goal is to own companies in a variety of industries in order to
maintain a diversified portfolio.
[PHOTO OF MICHAEL A. WELHOELTER] Michael A. Welhoelter has managed or co-managed
the fund since January 2003 and has been with
the advisor or its predecessors or affiliate
organizations since November 2001.
/s/ Michael A. Welhoelter
Equity investments are affected by stock market fluctuations that occur in
response to economic and business developments.
Investments in small- and mid-cap stocks may present special risks. They tend to
be more volatile and may be less liquid than the stocks of larger companies.
Small-cap stocks often have narrower markets, limited financial resources and
tend to be more thinly traded than stocks of larger companies.
Value stocks are securities of companies that may have experienced adverse
business or industry developments or may be subject to special risks that have
caused the stocks to be out of favor. If the advisor's assessment of a company's
prospects is wrong, the price of its stock may not approach the value the
advisor has placed on it.
13
PERFORMANCE OF A $10,000 INVESTMENT
04/01/95 - 03/31/05 ($)
SALES CHARGE WITHOUT WITH
- ------------------------------------------
CLASS A 21,399 20,168
- ------------------------------------------
CLASS B 20,389 20,389
- ------------------------------------------
CLASS C 20,405 20,405
- ------------------------------------------
CLASS G 19,865 19,865
- ------------------------------------------
CLASS T 21,231 20,010
- ------------------------------------------
CLASS Z 21,903 N/A
Performance data quoted represents past performance and current performance may
be lower or higher. Past performance is no guarantee of future results. The
investment return and principal value will fluctuate so that shares, when
redeemed, may be worth more or less than the original cost. Please visit
www.columbiafunds.com for daily and most recent month-end performance updates.
PERFORMANCE INFORMATION_________________________________________________________
COLUMBIA LARGE CAP CORE FUND
[MOUNTAIN CHART]
VALUE OF A $10,000 INVESTMENT 04/01/95 - 03/31/05
CLASS A SHARES CLASS A SHARES RUSSELL 1000 S&P 500
WITHOUT SALES CHARGE WITH SALES CHARGE INDEX INDEX
- -------------------- ----------------- ------------ --------
4/1995 10,000 9,425 10,000 10,000
10,197 9,611 10,266 10,294
10,574 9,966 10,660 10,706
10,767 10,148 10,943 10,954
11,028 10,394 11,361 11,318
10,966 10,335 11,446 11,346
11,342 10,689 11,917 11,825
11,196 10,553 11,863 11,782
11,701 11,029 12,392 12,300
11,939 11,252 12,580 12,537
12,200 11,499 12,986 12,963
12,346 11,636 13,155 13,084
12,600 11,875 13,274 13,209
12,832 12,094 13,475 13,404
13,074 12,323 13,799 13,749
12,981 12,235 13,814 13,802
12,466 11,749 13,148 13,192
12,826 12,089 13,506 13,470
13,319 12,553 14,265 14,228
13,465 12,691 14,580 14,621
14,501 13,667 15,656 15,726
14,309 13,487 15,402 15,415
15,005 14,142 16,316 16,378
15,036 14,172 16,378 16,506
14,599 13,759 15,641 15,828
15,167 14,295 16,487 16,773
16,089 15,164 17,542 17,794
16,676 15,717 18,268 18,591
17,827 16,802 19,763 20,071
17,214 16,224 18,830 18,947
17,990 16,955 19,862 19,985
17,515 16,508 19,218 19,318
18,065 17,026 20,052 20,212
18,484 17,421 20,459 20,560
18,419 17,360 20,611 20,788
19,784 18,647 22,080 22,287
20,722 19,530 23,193 23,428
20,890 19,689 23,432 23,665
20,386 19,214 22,926 23,258
20,494 19,316 23,774 24,202
19,990 18,841 23,489 23,946
16,900 15,928 19,977 20,483
17,726 16,707 21,322 21,796
19,254 18,147 23,006 23,568
20,315 19,147 24,430 24,996
21,416 20,185 25,987 26,436
21,677 20,431 26,914 27,541
21,250 20,028 26,061 26,684
22,079 20,810 27,059 27,752
22,947 21,627 28,190 28,826
22,961 21,640 27,581 28,146
24,240 22,846 28,988 29,708
23,466 22,117 28,104 28,781
22,570 21,272 27,840 28,640
21,676 20,430 27,074 27,855
22,105 20,834 28,894 29,618
22,326 21,043 29,636 30,219
22,911 21,594 31,423 31,999
22,103 20,832 30,138 30,393
21,676 20,430 30,057 29,819
23,906 22,532 32,795 32,735
23,935 22,559 31,703 31,750
23,832 22,462 30,882 31,099
23,224 21,889 31,669 31,867
23,327 21,985 31,143 31,370
24,887 23,456 33,448 33,318
23,740 22,375 31,896 31,559
24,153 22,764 31,513 31,426
22,960 21,640 28,633 28,950
23,791 22,423 28,979 29,091
24,752 23,329 29,933 30,124
23,502 22,151 27,140 27,377
22,029 20,762 25,338 25,641
23,504 22,153 27,373 27,634
23,810 22,441 27,559 27,819
23,291 21,952 26,936 27,143
23,324 21,982 26,567 26,877
22,055 20,787 24,949 25,194
20,112 18,955 22,833 23,159
20,450 19,274 23,308 23,601
21,992 20,727 25,103 25,411
22,403 21,115 25,372 25,635
21,390 20,160 25,049 25,260
21,076 19,864 24,551 24,773
21,936 20,674 25,560 25,704
20,773 19,579 24,095 24,147
21,072 19,861 23,883 23,968
19,315 18,204 22,121 22,261
17,920 16,890 20,484 20,527
17,771 16,750 20,590 20,661
15,644 14,745 18,379 18,415
16,741 15,778 19,906 20,035
17,784 16,761 21,071 21,215
16,808 15,841 19,878 19,970
16,525 15,575 19,397 19,447
16,043 15,120 19,096 19,155
16,206 15,274 19,295 19,341
17,423 16,421 20,852 20,935
18,307 17,254 22,041 22,038
18,402 17,344 22,332 22,320
18,702 17,626 22,776 22,713
19,119 18,020 23,238 23,156
18,719 17,643 23,001 22,910
19,653 18,523 24,349 24,207
19,903 18,759 24,641 24,420
20,530 19,349 25,822 25,700
20,713 19,522 26,312 26,173
20,930 19,727 26,675 26,536
20,746 19,553 26,313 26,136
20,213 19,051 25,836 25,725
20,581 19,397 26,208 26,078
20,931 19,727 26,680 26,584
19,961 18,814 25,744 25,704
19,812 18,673 25,870 25,807
20,046 18,893 26,196 26,085
20,196 19,035 26,618 26,484
20,963 19,758 27,757 27,557
21,705 20,457 28,762 28,494
21,291 20,067 28,037 27,799
21,791 20,538 28,668 28,382
3/2005 21,399 20,168 28,220 27,873
The graph and table do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares. The fund's
primary benchmark was changed to the Russell 1000 Index. Previously, the fund's
returns were compared to the S&P 500 Index. The Russell 1000 Index is an
unmanaged index that tracks the performance of 1,000 of the largest U.S.
companies, based on market capitalization. The Standard & Poor's (S&P) 500 Index
is an unmanaged index that tracks the performance of 500 widely held,
large-capitalization U.S. stocks. Unlike the fund, indices are not investments,
do not incur fees or expenses and are not professionally managed. It is not
possible to invest directly in an index. Securities in the fund may not match
those in an index.
AVERAGE ANNUAL TOTAL RETURN AS OF 03/31/05 (%)
SHARE CLASS A B C G T Z
- ------------------------------------------------------------------------------------------------------------------------------
INCEPTION 11/01/98 11/01/98 12/09/02 03/04/96 02/12/93 12/14/92
- ------------------------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- ------------------------------------------------------------------------------------------------------------------------------
6-MONTH (CUMULATIVE) 6.74 0.62 6.29 1.29 6.38 5.38 6.37 1.37 6.76 0.61 6.86
- ------------------------------------------------------------------------------------------------------------------------------
1-YEAR 3.13 -2.81 2.26 -2.69 2.35 1.35 2.30 -2.65 2.97 -2.99 3.26
- ------------------------------------------------------------------------------------------------------------------------------
5-YEAR -2.20 -3.35 -2.94 -3.28 -2.92 -2.92 -3.00 -3.51 -2.30 -3.45 -1.95
- ------------------------------------------------------------------------------------------------------------------------------
10-YEAR 7.90 7.27 7.38 7.38 7.39 7.39 7.10 7.10 7.82 7.18 8.16
THE "WITH SALES CHARGE" RETURNS INCLUDE THE MAXIMUM INITIAL SALES CHARGE OF
5.75% FOR CLASS A AND T SHARES, MAXIMUM CONTINGENT DEFERRED SALES CHARGE OF
5.00% FOR CLASS B AND G SHARES AND 1.00% FOR CLASS C 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 returns for class A and class B shares include the returns of Prime A shares
(for class A shares) and Prime B shares (for class B shares) of the Galaxy
Growth & Income Fund for periods prior to December 9, 2002, the date on which
class A and class B shares were initially offered by the fund. The returns shown
for class A shares and class B shares also include the returns of Retail A
shares of the Galaxy Growth & Income Fund (adjusted to reflect the sales charge
applicable to class A shares and class B shares, respectively) for periods prior
to the inception of Prime A and Prime B shares (November 1, 1998). Class A and
class B shares generally would have had substantially similar returns to Retail
A shares because they would have been invested in the same portfolio of
securities, although the returns would have been lower to the extent that
expenses for class A and class B shares exceed expenses paid by Retail A shares.
The returns shown for class C shares include the returns of Prime B shares of
the Galaxy Growth & Income Fund (adjusted to reflect the sales charge applicable
to class C shares) for periods prior to December 9, 2002, the date on which
class C shares were initially offered. The returns shown for class C shares also
include the returns of Retail A shares of the Galaxy Growth & Income Fund
(adjusted to reflect the sales charges applicable to class C shares) for periods
prior to the inception of Prime B shares (November 1, 1998). Class C shares
generally would have had substantially similar returns to Retail A and Prime B
shares because they would have been invested in the same portfolio of
securities, although the returns would have been lower to the extent that
expenses for class C shares exceed expenses paid by Retail A and Prime B shares.
The returns for class G and class T shares include the returns of Retail A
shares (for class T shares) and Retail B shares (for class G shares) of the
Galaxy Growth & Income Fund for periods prior to December 9, 2002, the date on
which class T and class G shares were initially offered by the fund. The returns
shown for class G shares also include the returns of Retail A shares for periods
prior to the inception of Retail B shares of the Galaxy Growth & Income Fund
(March 4, 1996). Retail A shares were initially offered on February 12, 1993.
Class G shares generally would have had substantially similar returns to Retail
A shares because they would have been invested in the same portfolio of
securities, although the returns would have been lower to the extent that
expenses for class G shares exceed expenses paid by Retail A shares. The returns
for class Z shares include returns of Trust shares of the Galaxy Growth & Income
Fund for periods prior to December 9, 2002, the date on which class Z shares
were initially offered by the fund, and returns of Trust shares of the Shawmut
Fund (whose shares were initially offered on December 14, 1992), for periods
prior to December 14, 1995.
14
[SIDEBAR]
ESTIMATING YOUR ACTUAL EXPENSES
To estimate the expenses that you paid over the period, first you will need your
account balance at the end of the period:
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA FUNDS
SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT
WWW.COLUMBIAFUNDS.COM OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM THEIR BROKERAGE
FIRM, CONTACT YOUR BROKERAGE FIRM TO OBTAIN YOUR ACCOUNT BALANCE
1. DIVIDE YOUR ENDING ACCOUNT BALANCE BY $1,000. FOR EXAMPLE, IF AN ACCOUNT
BALANCE WAS $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6
2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE
PERIOD," LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER
IS IN THE COLUMN LABELED "ACTUAL." MULTIPLY THIS NUMBER BY THE RESULT FROM
STEP 1. YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR
ACCOUNT DURING THE PERIOD
UNDERSTANDING YOUR EXPENSES_____________________________________________________
COLUMBIA LARGE CAP CORE FUND
As a fund shareholder, you incur two types of costs. There are transaction
costs, which generally include sales charges on purchases and may include
redemption or exchange fees. There are also ongoing costs, which generally
include investment advisory fees, Rule 12b-1 fees, and other fund expenses. The
information on this page is intended to help you understand your ongoing costs
of investing in the fund and to compare these costs with the ongoing costs of
investing in other mutual funds.
ANALYZING YOUR FUND'S EXPENSES BY SHARE CLASS
To illustrate these ongoing costs, we have provided an example and calculated
the expenses paid by investors in each share class during the reporting period.
The information in the following table is based on an initial investment of
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
10/01/04 - 03/31/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
- -------------------------------------------------------------------------------------------------------------------------
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
- -------------------------------------------------------------------------------------------------------------------------
CLASS A 1,000.00 1,000.00 1,067.36 1,018.05 7.11 6.94 1.38
- -------------------------------------------------------------------------------------------------------------------------
CLASS B 1,000.00 1,000.00 1,062.93 1,014.31 10.95 10.70 2.13
- -------------------------------------------------------------------------------------------------------------------------
CLASS C 1,000.00 1,000.00 1,063.77 1,014.31 10.96 10.70 2.13
- -------------------------------------------------------------------------------------------------------------------------
CLASS G 1,000.00 1,000.00 1,063.68 1,014.56 10.70 10.45 2.08
- -------------------------------------------------------------------------------------------------------------------------
CLASS T 1,000.00 1,000.00 1,067.56 1,017.80 7.37 7.19 1.43
- -------------------------------------------------------------------------------------------------------------------------
CLASS Z 1,000.00 1,000.00 1,068.61 1,019.30 5.83 5.69 1.13
Expenses paid during the period are equal to the fund's annualized expense
ratio, multiplied by the average account value over the period, then multiplied
by the number of days in the fund's most recent fiscal half-year and divided by
365.
Had the Investment Advisor and Transfer Agent not reimbursed/waived a portion of
expenses, total return would have been reduced.
It is important to note that the expense amounts shown in the table are meant to
highlight only ongoing costs of investing in the fund and do not reflect any
transactional costs, such as sales charges, redemption or exchange fees.
Therefore, the hypothetical examples provided may not help you determine the
relative total costs of owning shares of different funds. If these transactional
costs were included, your costs would have been higher.
COMPARE WITH OTHER FUNDS
Since all mutual fund companies are required to include the same hypothetical
calculations about expenses in shareholder reports, you can use this information
to compare the ongoing cost of investing in the fund with other funds. To do so,
compare the 5% hypothetical example with the 5% hypothetical examples that
appear in the shareholder reports of other funds. As you compare hypothetical
examples of other funds, it is important to note that hypothetical examples are
meant to highlight the continuing cost of investing in a fund and do not reflect
any transactional costs, such as sales charges or redemption or exchange fees.
15
[SIDEBAR]
SUMMARY
o FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2005, THE FUND'S CLASS A SHARES
RETURNED 6.74% WITHOUT SALES CHARGE.
o THE FUND, ITS BENCHMARK AND PEER GROUP ALL BENEFITED FROM A STOCK MARKET
RALLY THAT OCCURRED IN THE FOURTH QUARTER OF 2004.
o THE FUND'S INVESTMENTS IN ENERGY AND MATERIALS STOCKS BENEFITED FROM
INCREASED GLOBAL DEMAND. STOCK SELECTION IN INFORMATION TECHNOLOGY
ACCOUNTED FOR THE FUND'S SHORTFALL TO THE RUSSELL 1000 INDEX .
[UP ARROW] [UP ARROW]
CLASS A SHARES RUSSELL 1000 INDEX
6.74% 7.71%
OBJECTIVE
Seeks to provide a relatively
high total return through
long-term capital appreciation
and current income.
TOTAL NET ASSETS
$564.2 million
NET ASSET VALUE PER SHARE
AS OF 03/31/05 ($)
CLASS A 12.40
- ------------------------------------------
CLASS B 12.02
- ------------------------------------------
CLASS C 12.03
- ------------------------------------------
CLASS G 11.91
- ------------------------------------------
CLASS T 12.34
- ------------------------------------------
CLASS Z 12.45
DISTRIBUTIONS DECLARED PER SHARE
10/01/04 - 03/31/05 ($)
CLASS A 0.42
- ------------------------------------------
CLASS B 0.40
- ------------------------------------------
CLASS C 0.40
- ------------------------------------------
CLASS G 0.40
- ------------------------------------------
CLASS T 0.42
- ------------------------------------------
CLASS Z 0.43
PORTFOLIO MANAGERS' REPORT______________________________________________________
COLUMBIA LARGE CAP CORE FUND
For the six-month period ended March 31, 2005, class A shares of Columbia Large
Cap Core Fund returned 6.74% without sales charge. The fund's primary benchmark
was changed to the Russell 1000 Index in order to provide an even broader
measure of stock market performance. The fund underperformed the 7.71% return of
the Russell 1000 Index and the 6.88% return of the S&P 500 Index. It also
trailed the average return of the Morningstar(R) Large Blend Category, which was
7.14% during the same period. 1
On March 18, 2005, Columbia Common Stock Fund and Columbia Large Cap Core Fund
merged. This merger had a significant impact on the sector weights in the fund.
The combined fund approximately became 60% Large Cap Core Fund and 40% Common
Stock Fund. As a result, individual stock and sector weights shifted as much as
40%. The current management anticipates some portfolio restructuring in the
months ahead as they implement their contrarian approach.
TECHNOLOGY STOCKS SUFFERED
Stock selection, especially in the technology sector, accounted for the fund's
underperformance relative to its benchmark. Information technology stocks
suffered because capital spending was lower than anticipated given the maturity
of the economic recovery. Individual holdings that held back performance
included Symantec, Accenture and Avaya. All of these have been eliminated from
the portfolio. Stocks in the telecommunications services area also had a
negative impact on return. Verizon Communications and BellSouth declined after
announcing plans to roll out video services that compete with cable companies.
These large spending plans raised concerns about the potential for making money
on such services. Industry consolidation also played a role in the downturn of
some telecommunications companies. Verizon was affected by plans to buy MCI, and
Nextel Communications lost value when it announced a merger with Sprint. While
Verizon and Nextel remain in the portfolio, BellSouth was sold. Stock selection
in the industrials and health care sectors was also a disappointment.
CAPITALIZING ON THE INCREASED DEMAND FOR NATURAL RESOURCES
As global economic growth improved, worldwide demand for raw materials rose,
boosting the price of commodities. The fund's investments in the energy and
materials sectors benefited from this trend. In energy, the fund was diversified
among integrated oil companies, exploration and production companies and service
companies. The integrated oils gave performance the biggest boost, with
ConocoPhillips and Exxon Mobil leading the pack. In materials, coal producers
Peabody Energy and Arch Coal were leaders. Arch Coal was sold as part of the
portfolio restructuring
1 (C)2005, Morningstar, Inc. All rights reserved. The information contained
herein is the proprietary information of Morningstar, Inc., may not be
copied or redistributed for any purpose and may only be used for
noncommercial, personal purposes. The information contained herein is not
represented or warranted to be accurate, correct, complete or timely.
Morningstar, Inc. shall not be responsible for investment decisions,
damages or other losses resulting from the use of this information. Past
performance is no guarantee of future performance. Morningstar, Inc. has
not granted consent for it to be considered or deemed an "expert" under
the Securities Act of 1933. Morningstar Categories compare the performance
of funds with similar investment objectives and strategies.
16
[SIDEBAR]
SECTORS AS OF 03/31/05 (%)
INFORMATION TECHNOLOGY 19.7
- ------------------------------------------
CONSUMER DISCRETIONARY 15.5
- ------------------------------------------
FINANCIALS 15.5
- ------------------------------------------
HEALTH CARE 12.5
- ------------------------------------------
INDUSTRIALS 10.3
- ------------------------------------------
CONSUMER STAPLES 9.2
- ------------------------------------------
MATERIALS 6.6
- ------------------------------------------
ENERGY 5.7
- ------------------------------------------
TELECOMMUNICATION SERVICES 3.0
- ------------------------------------------
UTILITIES 2.0
Sector breakdown is calculated as a percentage
of total investments excluding short-term investments.
TOP 10 HOLDINGS AS OF 03/31/05 (%)
MICROSOFT 2.3
- ------------------------------------------
WAL-MART STORES 2.1
- ------------------------------------------
INTERNATIONAL BUSINESS MACHINES 1.9
- ------------------------------------------
KOHL'S 1.8
- ------------------------------------------
EXXON MOBIL 1.8
- ------------------------------------------
GENERAL ELECTRIC 1.8
- ------------------------------------------
CONOCOPHILLIPS 1.7
- ------------------------------------------
NEWS 1.7
- ------------------------------------------
CITIGROUP 1.6
- ------------------------------------------
CISCO SYSTEMS 1.6
HOLDINGS DISCUSSED IN THIS REPORT
AS OF 03/31/05 (%)
VERIZON COMMUNICATIONS 1.2
- ------------------------------------------
NEXTEL COMMUNICATIONS 0.4
- ------------------------------------------
CONOCOPHILLIPS 1.7
- ------------------------------------------
EXXON MOBIL 1.8
- ------------------------------------------
PEABODY ENERGY 0.4
- ------------------------------------------
COMPANHIA VALE DO RIO DOCE 0.5
- ------------------------------------------
J.C. PENNEY 0.7
- ------------------------------------------
YUM! BRANDS 0.6
- ------------------------------------------
LENNAR 0.4
- ------------------------------------------
WACHOVIA 1.2
- ------------------------------------------
E*TRADE FINANCIAL 0.7
- ------------------------------------------
MERRILL LYNCH 0.8
- ------------------------------------------
CITIGROUP 1.6
Your fund is actively managed and the composition of its portfolio will change
over time. Holdings are calculated as a percentage of net assets.
________________________________________________________________________________
COLUMBIA LARGE CAP CORE FUND
process. Companhia Vale do Rio Doce, a diversified mining company, also added
substantially to return.
CONSUMER DISCRETIONARY AND FINANCIALS BOLSTERED PERFORMANCE
Consumer discretionary stocks, which typically benefit from an improving
economic environment, were also significant contributors to return. Retailer
J.C. Penney, one of the best performing stocks in the portfolio, was helped by
consolidation in the retail industry. Yum! Brands, a global restaurant company,
was a positive for the portfolio. The company owns Pizza Hut, KFC and Taco Bell,
among other fast food restaurants. Retailers and restaurants were the big
drivers of performance among consumer discretionary stocks late in the period.
Home builder Lennar was also strong because home sales continued to be robust in
a relatively low interest-rate environment.
Because financials was a poorly performing sector, the fund's under-index
exposure to the area was helpful. Stock selection was also positive. Wachovia,
E*TRADE Financial, Merrill Lynch and Citigroup generated some of the largest
gains in the sector.
IMPLEMENTING A CONTRARIAN APPROACH
Near the end of this reporting period, Columbia Large Cap Core Fund acquired the
assets of Columbia Common Stock Fund. Since the acquisition only occurred March
18th, it has had minimal impact on the day-to-day operation of the fund through
that period. However, we have begun to evaluate the entire portfolio, reviewing
the fund's sector allocation strategy and assessing each stock for its potential
to meet our criteria. As part of the fund's more contrarian approach to stock
selection, we plan to seek companies that are generally out of favor with
investors. We also plan to avoid companies that may have become overvalued
because investors have become overly enthusiastic about their prospects. The
review may result in some position changes in the upcoming quarters.
John E. Maack has co-managed Columbia Large Cap
Core Fund since March 2005 and has been with the
advisor or its predecessors or affiliate
organizations since 1988.
/s/ John E. Maack Jr.
Guy W. Pope has co-managed the fund since March
2005 and has been with the advisor or its
predecessors or affiliate organizations since
1993.
/s/ Guy W. Pope
Equity investments are affected by stock market fluctuations that occur in
response to economic and business developments.
17
[SIDEBAR]
PERFORMANCE OF A $10,000 INVESTMENT
04/01/95 - 03/31/05 ($)
SALES CHARGE WITHOUT WITH
- ------------------------------------------
CLASS A 43,681 41,157
- ------------------------------------------
CLASS B 41,523 41,523
- ------------------------------------------
CLASS C 41,567 41,567
- ------------------------------------------
CLASS G 41,286 41,286
- ------------------------------------------
CLASS T 43,137 40,644
- ------------------------------------------
CLASS Z 44,833 N/A
Performance data quoted represents past performance and current performance may
be lower or higher. Past performance is no guarantee of future results. The
investment return and principal value will fluctuate so that shares, when
redeemed, may be worth more or less than the original cost. Please visit
www.columbiafunds.com for daily and most recent month-end performance updates.
PERFORMANCE INFORMATION_________________________________________________________
COLUMBIA SMALL CAP FUND
[MOUNTAIN CHART]
VALUE OF A $10,000 INVESTMENT 04/01/95 - 03/31/05
CLASS A SHARES CLASS A SHARES S&P SMALLCAP RUSSELL 2000
WITHOUT SALES CHARGE WITH SALES CHARGE 600 INDEX INDEX
- -------------------- ----------------- ------------ ------------
4/1995 10000 9425 10000 10000
10260 9670 10224 10222
10539 9933 10383 10398
11060 10424 10954 10937
11571 10905 11791 11567
11822 11142 12047 11807
12128 11431 12355 12018
11783 11106 11744 11481
12237 11534 12209 11963
12586 11862 12411 12279
12427 11713 12438 12266
12845 12106 12845 12648
13217 12457 13120 12906
14034 13227 13873 13597
14562 13725 14365 14132
14194 13377 13802 13552
13376 12607 12853 12369
14054 13246 13648 13087
14653 13810 14247 13599
14703 13857 14149 13389
15320 14439 14883 13941
15950 15033 15057 14306
16181 15251 15307 14593
16123 15196 14991 14239
15592 14696 14222 13567
15430 14543 14395 13605
17058 16077 16085 15118
18177 17132 16796 15767
19435 18317 17852 16500
20036 18883 18302 16878
21570 20330 19512 18113
21109 19895 18669 17318
20902 19700 18533 17205
20931 19728 18907 17507
20577 19394 18539 17230
21763 20511 20227 18503
23136 21805 21000 19266
23245 21908 21124 19372
22031 20764 20007 18327
21432 20200 20065 18366
20013 18862 18530 16878
17285 16291 14953 13600
18018 16982 15869 14665
18469 17407 16605 15264
19370 18256 17540 16064
19806 18667 18660 17058
19911 18766 18425 17285
18756 17677 16765 15885
18280 17228 16982 16133
19572 18447 18104 17578
20292 19125 18544 17835
21291 20066 19599 18641
21335 20108 19427 18130
20448 19272 18572 17459
20407 19233 18650 17463
19625 18497 18603 17534
20483 19305 19381 18581
21927 20666 20974 20684
21659 20414 20324 20351
22095 20824 23045 23711
22864 21549 22192 22149
22779 21469 21813 20816
22663 21360 21167 19602
23089 21761 22418 21311
22738 21431 21869 20625
24093 22708 23807 22199
24498 23089 23159 21546
23996 22616 23305 20585
23309 21969 20879 18471
25654 24179 23451 20058
26368 24851 24457 21103
26600 25070 22965 19718
26251 24742 21911 18754
27446 25867 23581 20221
28659 27011 24031 20718
29473 27778 24911 21433
29030 27361 24495 20273
28877 27216 23936 19619
26292 24780 20700 16978
27084 25526 21803 17971
28530 26889 23399 19362
30384 28637 24984 20557
30448 28697 25201 20343
31039 29254 24767 19786
33438 31515 26724 21374
34090 32130 27480 21569
33415 31494 26343 20611
32763 30880 24981 19589
28449 26813 21454 16631
28301 26673 21657 16589
26931 25382 20332 15398
26616 25085 20983 15893
28279 26653 22076 17310
27759 26163 21330 16346
27051 25496 20596 15893
26277 24766 19937 15413
26298 24786 20094 15612
28268 26643 21726 17092
30725 28958 23477 18926
31456 29647 24087 19269
33139 31233 25340 20475
34378 32401 26574 21413
33869 31922 25793 21016
36237 34153 28029 22782
37342 35195 29088 23591
38530 36314 29603 24069
39304 37044 30456 25114
39874 37581 31041 25340
40169 37859 31444 25576
39398 37132 30400 24271
39374 37110 30865 24657
40988 38632 32575 25695
38738 36511 30790 23966
38351 36146 30519 23844
39873 37581 32128 24962
40168 37859 32728 25454
43350 40857 35527 27661
44815 42238 36308 28479
43538 41034 35488 27292
44500 41941 36506 27753
3/2005 43681 41157 35556 26960
The graph and table do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares. The Russell
2000 Index is an unmanaged index that tracks the performance of the 2,000
smallest of the 3,000 largest U.S. companies based on market capitalization. The
Standard & Poor's (S&P) SmallCap 600 Index is an unmanaged index that tracks the
performance of 600 domestic companies traded on the New York Stock Exchange, the
American Stock Exchange and NASDAQ. The S&P SmallCap 600 Index is heavily
weighted with the stocks of companies with small market capitalizations. Unlike
the fund, indices are not investments, do not incur fees or expenses and are not
professionally managed. it is not possible to invest directly in an index.
Securities in the fund may not match those in an index.
AVERAGE ANNUAL TOTAL RETURN AS OF 03/31/05 (%)
SHARE CLASS A B C G T Z
- ---------------------------------------------------------------------------------------------------------------------------------
INCEPTION 11/01/98 11/01/98 11/18/02 11/01/98 02/12/93 12/14/92
- ---------------------------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- ---------------------------------------------------------------------------------------------------------------------------------
6-month (cumulative) 9.56 3.26 9.13 4.13 9.12 8.12 9.17 4.17 9.46 3.18 9.66
- ---------------------------------------------------------------------------------------------------------------------------------
1-year 8.76 2.49 7.92 2.92 7.97 6.97 8.01 3.01 8.65 2.40 9.04
- ---------------------------------------------------------------------------------------------------------------------------------
5-year 13.82 12.49 12.90 12.66 12.93 12.93 12.84 12.46 13.67 12.33 14.17
- ---------------------------------------------------------------------------------------------------------------------------------
10-year 15.89 15.20 15.30 15.30 15.31 15.31 15.23 15.23 15.74 15.05 16.19
THE "WITH SALES CHARGE" RETURNS INCLUDE THE MAXIMUM INITIAL SALES CHARGE OF
5.75% FOR CLASS A AND T SHARES, MAXIMUM CONTINGENT DEFERRED SALES CHARGE OF
5.00% FOR CLASS B AND G SHARES AND 1.00% FOR CLASS C 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.
Prior to November 18, 2002, the fund was named Galaxy Small Cap Value Fund, and
offered Retail A, Retail B, Trust, Prime A and Prime B share classes. On that
day, the fund changed its name to Liberty Small Cap Fund and began offering
class A, B, C, G, T and Z shares. The returns for class A and B shares include
returns of Prime A shares and Retail A shares (for class A shares) and Prime B
shares and Retail A shares (for class B shares) of the former Galaxy Small Cap
Value Fund for periods prior to the inception of class A and class B shares.
Class C share performance information includes returns of Retail B shares and
Retail A shares of the former Galaxy Small Cap Value Fund for periods prior to
the inception of class C shares. The returns for class G and T shares include
the returns of Retail A shares (for class T shares) and Retail B shares (for
class G shares) of the Galaxy Small Cap Value Fund for periods prior to November
18, 2002. The returns shown for class G shares also include the returns of
Retail A shares (adjusted to reflect the sales charges applicable to class G
shares) for periods prior to the inception of Retail B shares of the Galaxy
Small Cap Value Fund (November 1, 1998). Retail A shares were initially offered
on February 12, 1993. Class G shares generally would have had substantially
similar returns because they would have been invested in the same portfolio of
securities, although the returns would be lower to the extent that expenses for
class G shares exceed expenses paid by Retail A shares. The returns for class Z
shares include the returns of Trust shares of the Galaxy Small Cap Value Fund,
for periods prior to November 18, 2002, and returns of Trust shares of the Small
Cap portfolio of The Shawmut Funds (the "Shawmut Fund"), the predecessor to the
Galaxy Small Cap Value Fund, for periods prior to December 4, 1995. Total
returns are not restated to reflect any expense differential (e.g. Rule 12b-1
fees) between any of the share classes. Had the expense differential been
reflected, the returns for the periods prior to the inception of class A, B and
C shares would have been lower.
18
[SIDEBAR]
ESTIMATING YOUR ACTUAL EXPENSES
To estimate the expenses that you paid over the period, first you will need your
account balance at the end of the period:
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA FUNDS
SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT
WWW.COLUMBIAFUNDS.COM OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM THEIR BROKERAGE
FIRM, CONTACT YOUR BROKERAGE FIRM TO OBTAIN YOUR ACCOUNT BALANCE
1. DIVIDE YOUR ENDING ACCOUNT BALANCE BY $1,000. FOR EXAMPLE, IF AN ACCOUNT
BALANCE WAS $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6
2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE
PERIOD," LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER
IS IN THE COLUMN LABELED "ACTUAL." MULTIPLY THIS NUMBER BY THE RESULT FROM
STEP 1. YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR
ACCOUNT DURING THE PERIOD
UNDERSTANDING YOUR EXPENSES_____________________________________________________
COLUMBIA SMALL CAP FUND
As a fund shareholder, you incur two types of costs. There are transaction
costs, which generally include sales charges on purchases and may include
redemption or exchange fees. There are also ongoing costs, which generally
include investment advisory fees, Rule 12b-1 fees, and other fund expenses. The
information on this page is intended to help you understand your ongoing costs
of investing in the fund and to compare these costs with the ongoing costs of
investing in other mutual funds.
ANALYZING YOUR FUND'S EXPENSES BY SHARE CLASS
To illustrate these ongoing costs, we have provided an example and calculated
the expenses paid by investors in each share class during the reporting period.
The information in the following table is based on an initial investment of
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
10/01/04 - 03/31/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
- -----------------------------------------------------------------------------------------------------------------------------
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
- -----------------------------------------------------------------------------------------------------------------------------
CLASS A 1,000.00 1,000.00 1,095.64 1,019.30 5.90 5.69 1.13
- -----------------------------------------------------------------------------------------------------------------------------
CLASS B 1,000.00 1,000.00 1,091.30 1,015.56 9.80 9.45 1.88
- -----------------------------------------------------------------------------------------------------------------------------
CLASS C 1,000.00 1,000.00 1,091.20 1,015.56 9.80 9.45 1.88
- -----------------------------------------------------------------------------------------------------------------------------
CLASS G 1,000.00 1,000.00 1,091.70 1,015.81 9.54 9.20 1.83
- -----------------------------------------------------------------------------------------------------------------------------
CLASS T 1,000.00 1,000.00 1,094.64 1,019.05 6.16 5.94 1.18
- -----------------------------------------------------------------------------------------------------------------------------
CLASS Z 1,000.00 1,000.00 1,096.58 1,020.54 4.60 4.43 0.88
Expenses paid during the period are equal to the fund's annualized expense
ratio, multiplied by the average account value over the period, then multiplied
by the number of days in the fund's most recent fiscal half-year and divided by
365.
It is important to note that the expense amounts shown in the table are meant to
highlight only ongoing costs of investing in the fund and do not reflect any
transactional costs, such as sales charges, redemption or exchange fees.
Therefore, the hypothetical examples provided may not help you determine the
relative total costs of owning shares of different funds. If these transactional
costs were included, your costs would have been higher.
COMPARE WITH OTHER FUNDS
Since all mutual fund companies are required to include the same hypothetical
calculations about expenses in shareholder reports, you can use this information
to compare the ongoing cost of investing in the fund with other funds. To do so,
compare the 5% hypothetical example with the 5% hypothetical examples that
appear in the shareholder reports of other funds. As you compare hypothetical
examples of other funds, it is important to note that hypothetical examples are
meant to highlight the continuing cost of investing in a fund and do not reflect
any transactional costs, such as sales charges or redemption or exchange fees.
19
[SIDEBAR]
SUMMARY
o FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2005, THE FUND'S CLASS A SHARES
RETURNED 9.56% WITHOUT SALES CHARGE.
o THE FUND OUTPERFORMED THE RUSSELL 2000 INDEX, UNDERPERFORMED THE S&P
SMALLCAP 600 INDEX AND PERFORMED GENERALLY IN LINE WITH ITS PEER GROUP,
THE MORNINGSTAR(R) SMALL BLEND CATEGORY.
o AN EMPHASIS ON HEALTH CARE AND CONSUMER DISCRETIONARY STOCKS AIDED
PERFORMANCE. RETURNS FROM ENERGY, INDUSTRIALS AND MATERIALS WERE MIXED.
[UP ARROW] [UP ARROW] [UP ARROW]
S&P
CLASS A RUSSELL 2000 SMALLCAP
SHARES INDEX 600 INDEX
9.56% 8.00% 10.68%
OBJECTIVE
Seeks long-term capital appreciation.
TOTAL NET ASSETS
$1,605.0 million
NET ASSET VALUE PER SHARE
AS OF 03/31/05 ($)
CLASS A 18.14
- ------------------------------------------
CLASS B 17.48
- ------------------------------------------
CLASS C 17.50
- ------------------------------------------
CLASS G 17.33
- ------------------------------------------
CLASS T 17.98
- ------------------------------------------
CLASS Z 18.32
DISTRIBUTIONS DECLARED PER SHARE
10/01/04 - 03/31/05 ($)
CLASS A 1.07
- ------------------------------------------
CLASS B 0.95
- ------------------------------------------
CLASS C 0.95
- ------------------------------------------
CLASS G 0.95
- ------------------------------------------
CLASS T 1.06
- ------------------------------------------
CLASS Z 1.12
PORTFOLIO MANAGER'S REPORT______________________________________________________
COLUMBIA SMALL CAP FUND
For the six-month period ended March 31, 2005, Columbia Small Cap Fund class A
shares returned 9.56% without sales charge. That was higher than the Russell
2000 Index, which returned 8.00% for the same period. However, the fund trailed
the S&P SmallCap 600 Index, which returned 10.68%. The fund's return also fell
short of the average return of its peer group, the Morningstar(R) Small Blend
Category, which was 9.67%. 1
Most of the outperformance relative to the Russell 2000 Index occurred
in the first quarter of 2005 when higher quality stocks, such as the ones
favored by the fund, made a strong showing. Sector allocation and significant
gains from some of the fund's larger holdings also helped boost return.
HEALTH CARE AND CONSUMER DISCRETIONARY STOCKS WERE LEADERS
The fund's emphasis on health care stocks was favorable for performance, with
much of the gain coming from two stocks, Lifecore Biomedical and Triad
Hospitals. Lifecore Biomedical, which makes dental implants, reported
better-than-expected earnings and also provided a positive earnings forecast.
Triad Hospitals runs a national chain of hospitals. The company's earnings
improved when issues involving Medicaid reimbursements were resolved.
An above-index weight in the consumer discretionary sector was also helpful.
Performance was driven by Unifirst, a uniform rental company, which reported
earnings that beat analysts' expectations. Stronger demand for uniforms, which
resulted from rising employment, was instrumental in boosting Unifirst's value.
ProQuest also made substantial gains. The company's main business involves
providing academic institutions and libraries with materials on microfilm and
electronic formats.
An underweight in financials and information technology, two poorly performing
sectors, also worked to the fund's advantage.
MIXED RESULTS IN ENERGY, MATERIALS AND INDUSTRIALS
We reduced the fund's energy allocation from an overweight to an underweight
position relative to its benchmark, because many of the stocks in the portfolio
appreciated substantially as the price of oil rose. We gave up some performance
with our decision, because energy stocks continued to soar. However, individual
holdings in the portfolio made strong contributions to fund performance.
Gulfmark Offshore led the
1 (C)2005, Morningstar, Inc. All rights reserved. The information contained
herein is the proprietary information of Morningstar, Inc., may not be
copied or redistributed for any purpose and may only be used for
noncommercial, personal purposes. The information contained herein is not
represented or warranted to be accurate, correct, complete or timely.
Morningstar, Inc. shall not be responsible for investment decisions,
damages or other losses resulting from the use of this information. Past
performance is no guarantee of future performance. Morningstar, Inc. has
not granted consent for it to be considered or deemed an "expert" under
the Securities Act of 1933. Morningstar Categories compare the performance
of funds with similar investment objectives and strategies.
20
[SIDEBAR]
SECTORS AS OF 03/31/05 (%)
CONSUMER DISCRETIONARY 23.1
- ------------------------------------------
INDUSTRIALS 17.5
- ------------------------------------------
INFORMATION TECHNOLOGY 15.9
- ------------------------------------------
HEALTH CARE 14.6
- ------------------------------------------
FINANCIALS 10.0
- ------------------------------------------
MATERIALS 7.1
- ------------------------------------------
ENERGY 5.7
- ------------------------------------------
UTILITIES 2.7
- ------------------------------------------
CONSUMER STAPLES 2.6
- ------------------------------------------
TELECOMMUNICATION SERVICES 0.8
Sector breakdown is calculated as a percentage of total investments excluding
short-term investments.
TOP 10 HOLDINGS AS OF 03/31/05 (%)
BENCHMARK ELECTRONICS 1.7
- ------------------------------------------
INVACARE 1.3
- ------------------------------------------
ALBANY INTERNATIONAL 1.2
- ------------------------------------------
CHICAGO BRIDGE & IRON 1.1
- ------------------------------------------
ARMOR HOLDINGS 1.0
- ------------------------------------------
WHITING PETROLEUM 1.0
- ------------------------------------------
MACDERMID 1.0
- ------------------------------------------
UNIFIRST 0.9
- ------------------------------------------
PEDIATRIX MEDICAL GROUP 0.9
- ------------------------------------------
RES-CARE 0.9
HOLDINGS DISCUSSED IN THIS REPORT
AS OF 03/31/05 (%)
LIFECORE BIOMEDICAL 0.3
- ------------------------------------------
TRIAD HOSPITALS 0.6
- ------------------------------------------
UNIFIRST 0.9
- ------------------------------------------
PROQUEST 0.9
- ------------------------------------------
GULFMARK OFFSHORE 0.9
- ------------------------------------------
VINTAGE PETROLEUM 0.4
- ------------------------------------------
GREIF 0.9
Your fund is actively managed and the composition of its portfolio will change
over time. Holdings are calculated as a percentage of net assets.
________________________________________________________________________________
COLUMBIA SMALL CAP FUND
sector. The company runs supply boats to drilling rigs in the North Sea, Asia
and Brazil. Vintage Petroleum, an oil and natural gas company, was also
positive. Higher oil prices were a factor in Vintage's return; but the company
also benefited from the fact that it owns a large amount of land that is rich in
shale rock, and there has been renewed interest in obtaining natural gas from
shale.
We usually maintain an underweight in materials, because the sector is composed
mostly of large metals and mining companies that do not fit our investment
strategy. During the reporting period, materials stocks were strong, and our
less-than-benchmark weight held back return. On a more positive note, one of our
larger holdings, Greif, was among the best performers in the portfolio. Greif is
a global producer of industrial packaging products. The company's stock soared
when it reported earnings that were much better than expected.
After a long run of positive performance, our overweight in industrials was a
slight negative. Industrials tend to be more cyclical in nature, which means
they usually outperform when economic growth is improving. Because cyclicals are
not consistent growers, there has been some concern that they may have run their
course and that investors will abandon them for companies that offer slower but
steadier growth.
A SLIGHT EMPHASIS ON GROWTH
Small-cap value stocks have outperformed small-cap growth stocks for several
years. As a result, valuations are high. We believe that investors may shift
away from value stocks toward growth stocks. Therefore, we are willing to tilt
the portfolio slightly toward growth. As always, we plan to be selective in our
investment decisions, choosing attractively valued stocks with good earnings
potential and business prospects.
[PHOTO OF PETER LARSON] Peter Larson has managed Columbia Small Cap Fund
since 1992 and has been with the advisor or its
predecessors or affiliate organizations since
1963.
/s/ Peter Larson
Equity investments are affected by stock market fluctuations that occur in
response to economic and business developments.
Investments in small-cap stocks may be subject to greater volatility and price
fluctuations because they may be thinly traded and less liquid than investments
in larger companies.
21
[SIDEBAR]
PERFORMANCE OF A $10,000 INVESTMENT
04/01/95 - 03/31/05 ($)
SALES CHARGE WITHOUT WITH
- ------------------------------------------
CLASS A 20,306 19,134
- ------------------------------------------
CLASS B 19,052 19,052
- ------------------------------------------
CLASS C 18,991 18,991
- ------------------------------------------
CLASS G 19,015 19,015
- ------------------------------------------
CLASS T 20,270 19,100
- ------------------------------------------
CLASS Z 21,190 N/A
Performance data quoted represents past performance and current performance may
be lower or higher. Past performance is no guarantee of future results. The
investment return and principal value will fluctuate so that shares, when
redeemed, may be worth more or less than the original cost. Please visit
www.columbiafunds.com for daily and most recent month-end performance updates.
PERFORMANCE INFORMATION_________________________________________________________
COLUMBIA SMALL COMPANY EQUITY FUND
[MOUNTAIN CHART]
VALUE OF A $10,000 INVESTMENT 04/01/95 - 03/31/05
CLASS A CLASS A
SHARES WITHOUT SHARES WITH RUSSELL 2000 RUSSELL 2000
SALES CHARGE SALES CHARGE GROWTH INDEX INDEX
------------ ------------ ------------ ------------
4/95 10000 9425 10000 10000
10302 9710 10151 10222
10395 9797 10284 10398
11287 10638 10993 10937
12302 11595 11849 11567
12403 11690 11995 11807
12969 12223 12242 12018
12620 11894 11639 11481
13077 12325 12153 11963
13083 12331 12422 12279
12801 12065 12319 12266
13655 12869 12881 12648
14313 13490 13136 12906
15957 15040 14145 13597
16584 15631 14871 14132
15472 14582 13904 13552
14226 13408 12206 12369
15095 14227 13110 13087
16075 15151 13785 13599
15644 14745 13191 13389
15691 14789 13557 13941
15809 14900 13822 14306
16414 15470 14167 14593
14804 13953 13312 14239
13879 13081 12372 13567
13443 12670 12228 13605
15783 14876 14066 15118
16647 15690 14543 15767
17546 16537 15288 16500
18070 17031 15746 16878
19529 18406 17003 18113
18630 17559 15981 17318
17865 16837 15601 17205
18050 17012 15610 17507
17617 16604 15402 17230
19088 17991 16762 18503
19905 18761 17465 19266
19652 18522 17571 19372
18271 17220 16294 18327
18039 17002 16460 18366
16426 15482 15086 16878
12366 11655 11604 13600
13706 12918 12781 14665
13736 12946 13448 15264
14654 13811 14491 16064
16075 15151 15803 17058
16247 15313 16514 17285
13929 13128 15003 15885
13636 12852 15537 16133
13969 13166 16909 17578
14433 13603 16936 17835
15612 14714 17828 18641
15370 14486 17277 18130
15098 14230 16631 17459
15501 14610 16952 17463
15783 14875 17386 17534
18373 17317 19224 18581
22334 21050 22613 20684
22133 20861 22403 20351
27414 25838 27616 23711
27335 25763 24714 22149
23798 22429 22217 20816
22408 21119 20271 19602
24989 23552 22890 21311
22510 21216 20929 20625
24637 23221 23130 22199
23689 22327 21981 21546
21924 20663 20196 20585
19304 18194 16528 18471
21113 19899 17540 20058
22367 21081 18959 21103
20761 19567 16360 19718
19495 18374 14872 18754
20711 19520 16693 20221
21295 20071 17080 20718
22075 20805 17546 21433
21393 20162 16050 20273
20479 19302 15047 19619
17012 16034 12618 16978
18193 17147 13832 17971
19592 18465 14987 19362
21088 19876 15921 20557
20175 19015 15354 20343
18666 17593 14360 19786
20150 18991 15608 21374
19372 18258 15271 21569
17974 16940 14378 20611
16574 15621 13159 19589
13811 13017 11136 16631
13836 13040 11131 16589
13178 12421 10327 15398
13665 12879 10849 15893
14930 14072 11925 17310
13969 13165 11102 16346
13287 12523 10800 15893
12909 12167 10512 15413
13275 12512 10670 15612
14187 13371 11680 17092
15793 14885 12996 18926
16170 15240 13247 19269
16985 16009 14248 20475
17789 16766 15013 21413
17155 16169 14633 21016
18945 17855 15898 22782
19382 18268 16416 23591
19869 18726 16490 24069
20709 19518 17356 25114
20904 19702 17330 25340
21245 20023 17411 25576
20344 19174 16537 24271
20417 19243 16866 24657
20878 19678 17428 25695
18860 17775 15863 23966
18348 17293 15522 23844
19394 18279 16380 24962
19869 18727 16778 25454
21306 20081 18196 27661
22060 20792 18849 28479
20856 19657 18001 27292
21123 19908 18248 27753
3/05 20306 19134 17567 26960
The graph and table do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares. The Russell
2000 Growth Index is an unmanaged index that measures the performance of those
Russell 2000 Index companies with higher price-to-book ratios and higher
forecasted growth values. The Russell 2000 Index is an unmanaged index that
tracks the performance of the 2,000 smallest of the 3,000 largest U.S. companies
based on market capitalization. Unlike the fund, indices are not investments, do
not incur fees or expenses and are not professionally managed. It is not
possible to invest directly in an index. Securities in the fund may not match
those in an index.
AVERAGE ANNUAL TOTAL RETURN AS OF 03/31/05 (%)
SHARE CLASS A B C G T Z
- ----------------------------------------------------------------------------------------------------------------------------------
INCEPTION 11/18/02 11/18/02 11/18/02 03/04/96 12/30/91 12/30/91
- ----------------------------------------------------------------------------------------------------------------------------------
SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT
- ----------------------------------------------------------------------------------------------------------------------------------
6-month (cumulative) 4.71 -1.30 4.30 -0.70 4.25 3.25 4.31 -0.69 4.65 -1.36 4.75
- ----------------------------------------------------------------------------------------------------------------------------------
1-year -4.41 -9.93 -5.13 -9.88 -5.21 -6.16 -5.14 -9.89 -4.53 -9.99 -4.29
- ----------------------------------------------------------------------------------------------------------------------------------
5-year -5.77 -6.88 -6.53 -6.84 -6.59 -6.59 -6.57 -7.03 -5.80 -6.91 -5.44
- ----------------------------------------------------------------------------------------------------------------------------------
10-year 7.34 6.70 6.66 6.66 6.62 6.62 6.64 6.64 7.32 6.68 7.80
THE "WITH SALES CHARGE" RETURNS INCLUDE THE MAXIMUM INITIAL SALES CHARGE OF
5.75% FOR CLASS A AND T SHARES, MAXIMUM CONTINGENT DEFERRED SALES CHARGE OF
5.00% FOR CLASS B AND G SHARES AND 1.00% FOR CLASS C 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.
Class A, class B, and class C are newer classes of shares. Their performance
information includes returns of Retail A shares (for class A shares) and Retail
B shares (for class B and class C shares) of the Galaxy Small Company Equity
Fund for periods prior to November 18, 2002, the date on which class A, B, and C
shares were initially offered by the Fund. The returns of class B and class C
shares also include the returns of Retail A shares for periods prior to the
inception of Retail B shares of the Galaxy Small Company Equity Fund (March 4,
1996). Class B and class C shares generally would have had substantially similar
returns to Retail A shares because they would have been invested in the same
portfolio of securities, although the returns would be lower to the extent that
expenses for class B and class C shares exceed expenses paid by Retail A shares.
The returns have not been restated to reflect any differences in expenses
between the predecessor shares and the newer class of shares. If differences in
expenses had been reflected, the returns shown for periods prior to the
inception of the newer classes of shares would have been lower. The returns for
class G and T shares include the returns of Retail A shares (for class T shares)
and Retail B shares (for class G shares) of the Galaxy Small Company Equity Fund
for periods prior to November 18, 2002, the date on which class T and class G
shares were initially offered by the fund. The returns shown for class G shares
also include the returns of Retail A shares (adjusted to reflect the sales
charge applicable to class G shares) for periods prior to the inception of
Retail B shares of the Galaxy Small Company Equity Fund (March 4, 1996). Retail
A shares were initially offered on December 30, 1991. Class G shares generally
would have had substantially similar returns to Retail A shares because they
would have been invested in the same portfolio of securities, although the
returns would have been lower to the extent that expenses for class G shares
exceed expenses paid by Retail A shares. The returns for class Z shares include
the returns of Trust shares of the Galaxy Small Company Equity Fund for periods
prior to November 18, 2002, the date on which class Z shares were initially
offered by the fund.
22
[SIDEBAR]
ESTIMATING YOUR ACTUAL EXPENSES
To estimate the expenses that you paid over the period, first you will need your
account balance at the end of the period:
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM COLUMBIA FUNDS
SERVICES, INC., YOUR ACCOUNT BALANCE IS AVAILABLE ONLINE AT
WWW.COLUMBIAFUNDS.COM OR BY CALLING SHAREHOLDER SERVICES AT 800.345.6611
o FOR SHAREHOLDERS WHO RECEIVE THEIR ACCOUNT STATEMENTS FROM THEIR BROKERAGE
FIRM, CONTACT YOUR BROKERAGE FIRM TO OBTAIN YOUR ACCOUNT BALANCE
1. DIVIDE YOUR ENDING ACCOUNT BALANCE BY $1,000. FOR EXAMPLE, IF AN ACCOUNT
BALANCE WAS $8,600 AT THE END OF THE PERIOD, THE RESULT WOULD BE 8.6
2. IN THE SECTION OF THE TABLE BELOW TITLED "EXPENSES PAID DURING THE
PERIOD," LOCATE THE AMOUNT FOR YOUR SHARE CLASS. YOU WILL FIND THIS NUMBER
IS IN THE COLUMN LABELED "ACTUAL." MULTIPLY THIS NUMBER BY THE RESULT FROM
STEP 1. YOUR ANSWER IS AN ESTIMATE OF THE EXPENSES YOU PAID ON YOUR
ACCOUNT DURING THE PERIOD
UNDERSTANDING YOUR EXPENSES_____________________________________________________
COLUMBIA SMALL COMPANY EQUITY FUND
As a fund shareholder, you incur two types of costs. There are transaction
costs, which generally include sales charges on purchases and may include
redemption or exchange fees. There are also ongoing costs, which generally
include investment advisory fees, Rule 12b-1 fees, and other fund expenses. The
information on this page is intended to help you understand your ongoing costs
of investing in the fund and to compare these costs with the ongoing costs of
investing in other mutual funds.
ANALYZING YOUR FUND'S EXPENSES BY SHARE CLASS
To illustrate these ongoing costs, we have provided an example and calculated
the expenses paid by investors in each share class during the reporting period.
The information in the following table is based on an initial investment of
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total return
for the period. The amount listed in the "hypothetical" column for each share
class assumes that the return each year is 5% before expenses and includes the
fund's actual expense ratio. You should not use the hypothetical account values
and expenses to estimate either your actual account balance at the end of the
period or the expenses you paid during this reporting period.
10/01/04 - 03/31/05
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID FUND'S ANNUALIZED
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($) EXPENSE RATIO (%)
- ------------------------------------------------------------------------------------------------------------------------
ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL ACTUAL HYPOTHETICAL
- ------------------------------------------------------------------------------------------------------------------------
CLASS A 1,000.00 1,000.00 1,047.07 1,018.25 6.84 6.74 1.34
- ------------------------------------------------------------------------------------------------------------------------
CLASS B 1,000.00 1,000.00 1,043.03 1,014.51 10.65 10.50 2.09
- ------------------------------------------------------------------------------------------------------------------------
CLASS C 1,000.00 1,000.00 1,043.13 1,014.51 10.65 10.50 2.09
- ------------------------------------------------------------------------------------------------------------------------
CLASS G 1,000.00 1,000.00 1,043.08 1,014.76 10.39 10.25 2.04
- ------------------------------------------------------------------------------------------------------------------------
CLASS T 1,000.00 1,000.00 1,046.47 1,018.00 7.09 6.99 1.39
- ------------------------------------------------------------------------------------------------------------------------
CLASS Z 1,000.00 1,000.00 1,048.12 1,019.50 5.57 5.49 1.09
Expenses paid during the period are equal to the fund's annualized expense
ratio, multiplied by the average account value over the period, then multiplied
by the number of days in the fund's most recent fiscal half-year and divided by
365.
Had the Transfer Agent not waived a portion of expenses, total return would have
been reduced.
It is important to note that the expense amounts shown in the table are meant to
highlight only ongoing costs of investing in the fund and do not reflect any
transactional costs, such as sales charges, redemption or exchange fees.
Therefore, the hypothetical examples provided may not help you determine the
relative total costs of owning shares of different funds. If these transactional
costs were included, your costs would have been higher.
COMPARE WITH OTHER FUNDS
Since all mutual fund companies are required to include the same hypothetical
calculations about expenses in shareholder reports, you can use this information
to compare the ongoing cost of investing in the fund with other funds. To do so,
compare the 5% hypothetical example with the 5% hypothetical examples that
appear in the shareholder reports of other funds. As you compare hypothetical
examples of other funds, it is important to note that hypothetical examples are
meant to highlight the continuing cost of investing in a fund and do not reflect
any transactional costs, such as sales charges or redemption or exchange fees.
23
[SIDEBAR]
SUMMARY
o FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2005, THE FUND'S CLASS A SHARES
RETURNED 4.71% WITHOUT SALES CHARGE.
o THE FUND TRAILED ITS PRIMARY BENCHMARK, THE RUSSELL 2000 GROWTH INDEX, ITS
SECONDARY BENCHMARK, THE RUSSELL 2000 INDEX, AND ITS PEER GROUP, THE
MORNINGSTAR(R) SMALL GROWTH CATEGORY.
o THE FUND'S BIAS TOWARD SMALLER SMALL-CAP COMPANIES WITH ATTRACTIVE
LONG-TERM PROSPECTS HAMPERED RETURNS DURING THIS REPORTING PERIOD AS
INVESTORS BECAME MORE RISK AVERSE AND SHORT-TERM FOCUSED. BIOTECHNOLOGY,
RETAIL AND INDUSTRIALS STOCKS WERE AMONG THE BIGGEST DETRACTORS FROM
PERFORMANCE.
[UP ARROW] [UP ARROW] [UP ARROW]
RUSSELL 2000
CLASS A GROWTH RUSSELL 2000
SHARES INDEX INDEX
4.71% 7.23% 8.00%
OBJECTIVE
SEEKS CAPITAL APPRECIATION.
TOTAL NET ASSETS
$362.9 MILLION
NET ASSET VALUE PER SHARE
AS OF 03/31/05 ($)
CLASS A 16.69
- ------------------------------------------
CLASS B 15.52
- ------------------------------------------
CLASS C 15.47
- ------------------------------------------
CLASS G 15.49
- ------------------------------------------
CLASS T 16.66
- ------------------------------------------
CLASS Z 17.64
PORTFOLIO MANAGERS' REPORT______________________________________________________
COLUMBIA SMALL COMPANY EQUITY FUND
For the six-month period ended March 31, 2005, class A shares of Columbia Small
Company Equity Fund returned 4.71% without sales charge. That was lower than the
7.23% return of its primary benchmark, the Russell 2000 Growth Index, and the
8.00% return of its secondary benchmark, the Russell 2000 Index. The fund also
fell short of the Morningstar(R) Small Growth Category, which was 8.23%. 1 The
fund's emphasis on companies with longer-term growth prospects but higher risk
profiles detracted from performance as investors grew risk averse during the
period. Nevertheless, we plan to continue to focus on companies with healthy
balance sheets, attractive business models and strong management teams on the
belief that they are positioned to deliver sustainable earnings growth--and
higher stock prices--over time. Biotechnology, retail and industrial stocks
especially hampered returns.
HEALTH CARE RETURNS SUFFERED AS INVESTORS LOST CONFIDENCE IN BIOTECH
Within health care, the fund favored biotechnology stocks, which declined
sharply as negative product news surfaced and the Food and Drug Administration
became more cautious. Disappointments included Telik and Advancis
Pharmaceutical. Telik, which has a new lung cancer drug, fell sharply when a
competitor introduced a new standard of care. Advancis tumbled when a partner
withdrew in the midst of clinical trials for a new drug delivery technology. By
contrast, LCA-Vision delivered a strong return. The company benefited from
strong demand for its laser vision correction and eye surgery services, solid
market share gains and expansion into new markets. We believed the stock had
reached full valuation and sold the fund's stake.
STOCK SELECTION WEIGHED ON CONSUMER DISCRETIONARY AND INDUSTRIAL RETURNS
Within the consumer discretionary sector, investors grew impatient with
retailers such as Sharper Image and Cost Plus. Sharper Image (no longer in the
portfolio) failed to revitalize a tired product line, while Cost Plus suffered
from pricing pressures in the home furnishings business. Despite very strong
gains from Jarden, Gaylord Entertainment and Marvel Enterprises, these losses
kept returns behind the sector average. Jarden is a consumer products
conglomerate with a skilled management team whose prospects rose with the recent
acquisition of Sunbeam. Gaylord benefited from growing demand for its hotels and
convention centers, while Marvel--which owns the rights to over 4,500 comic book
characters--rallied following strong holiday sales for Spiderman-related
products. In the industrial sector, moving company Sirva declined sharply amid
concerns over accounting irregularities and weak performance in its European
subsidiary.
1 (C)2005, Morningstar, Inc. All rights reserved. The information contained
herein is the proprietary information of Morningstar, Inc., may not be
copied or redistributed for any purpose and may only be used for
noncommercial, personal purposes. The information contained herein is not
represented or warranted to be accurate, correct, complete or timely.
Morningstar, Inc. shall not be responsible for investment decisions,
damages or other losses resulting from the use of this information. Past
performance is no guarantee of future performance. Morningstar, Inc. has
not granted consent for it to be considered or deemed an "expert" under
the Securities Act of 1933. Morningstar Categories compare the performance
of funds with similar investment objectives and strategies.
24
[SIDEBAR]
SECTORS AS OF 03/31/05 (%)
INFORMATION TECHNOLOGY 25.7
- ------------------------------------------
HEALTH CARE 19.3
- ------------------------------------------
CONSUMER DISCRETIONARY 15.5
- ------------------------------------------
INDUSTRIALS 13.2
- ------------------------------------------
FINANCIALS 9.7
- ------------------------------------------
INVESTMENT COMPANIES 8.6
- ------------------------------------------
ENERGY 6.4
- ------------------------------------------
MATERIALS 1.6
Sector breakdown is calculated as a percentage of total investments excluding
short-term investments.
TOP 10 HOLDINGS AS OF 03/31/05 (%)
ISHARES RUSSELL 2000 GROWTH
INDEX FUND 4.7
- ------------------------------------------
ISHARES RUSSELL 2000
INDEX FUND 3.6
- ------------------------------------------
JARDEN 1.9
- ------------------------------------------
DRS TECHNOLOGIES 1.5
- ------------------------------------------
SCIENTIFIC GAMES 1.2
- ------------------------------------------
DIGITAS 1.1
- ------------------------------------------
GAYLORD ENTERTAINMENT 1.1
- ------------------------------------------
MEDICAL ACTION INDUSTRIES 1.0
- ------------------------------------------
PINNACLE ENTERTAINMENT 1.0
- ------------------------------------------
JEFFERIES GROUP 1.0
HOLDINGS DISCUSSED IN THIS REPORT
AS OF 03/31/05 (%)
TELIK 0.9
- ------------------------------------------
ADVANCIS PHARMACEUTICALS 0.3
- ------------------------------------------
COST PLUS 1.0
- ------------------------------------------
JARDEN 1.9
- ------------------------------------------
GAYLORD ENTERTAINMENT 1.1
- ------------------------------------------
MARVEL ENTERPRISES 0.9
- ------------------------------------------
SIRVA 0.2
- ------------------------------------------
ITRON 0.5
- ------------------------------------------
IXYS 0.8
- ------------------------------------------
PALMSOURCE 0.4
Your fund is actively managed and the composition of its portfolio will change
over time. Holdings are calculated as a percentage of net assets.
________________________________________________________________________________
COLUMBIA SMALL COMPANY EQUITY FUND
TECHNOLOGY STOCKS WERE THE BIGGEST DRIVERS OF THE FUND'S GAINS
The fund's best returns came from the technology sector, where the focus was on
companies with innovative products. F5 Networks, a software networking company,
rallied nicely as its products gained recognition. Retek, which makes software
that helps retailers with merchandise projections, benefited from a buyout
offer. In addition, Activision, a videogame manufacturer, posted sharp gains,
following strong holiday sales. We locked in profits and sold all three stocks.
Other top performers included Itron and IXYS, both of which benefited from
improved prospects. Itron provides technology enabling utility companies to read
meters wirelessly, while IXYS is a power semiconductor company that has recently
diversified into higher growth areas. Among the few tech disappointments was
PalmSource, which plummeted after failing to acquire new customers for its smart
phone operating systems.
SMALL-CAP STOCKS STILL HAVE POTENTIAL FOR FURTHER APPRECIATION
Despite the market's recent challenges, we remain optimistic about the prospects
for small-cap stocks in a growing economy. Although the valuation gap between
small- and large-cap stocks has closed, we believe earnings growth expectations
for small-company stocks remain significantly higher than those for larger
companies. Small-cap growth valuations are also more attractive than those of
small-cap value stocks.
Paul Berlinguet has managed Columbia Small
Company Equity Fund since November 2003 and has
been with the advisor since October 2003.
/s/ Paul Berlinguet
Steven Lilly has co-managed the fund since May
2004 and has been with the advisor or its
predecessors or affiliate organizations since
July 1995.
/s/ Steven Lilly
Thomas Lettenberger has co-managed the fund
since May 2004 and has been with the advisor or
its predecessors or affiliate organizations
since August 2000.
/s/ Thomas Lettenberger
Equity investments are affected by stock market fluctuations that occur in
response to economic and business developments.
Investments in small-cap stocks may be subject to greater volatility and price
fluctuations because they may be thinly traded and less liquid than investments
in larger companies.
25
FINANCIAL STATEMENTS____________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA EQUITY FUNDS
A GUIDE TO UNDERSTANDING YOUR FUND'S FINANCIAL STATEMENTS
--------------------------------------------------------------------------
INVESTMENT PORTFOLIO The investment portfolio details all of the fund's holdings and their
market value as of the last day of the reporting period. Portfolio
holdings are organized by type of asset, industry, country or geographic
region (if applicable) to demonstrate areas of concentration and
diversification.
--------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES This statement details the fund's assets, liabilities, net assets and
share price for each share class as of the last day of the reporting
period. Net assets are calculated by subtracting all the fund's
liabilities (including any unpaid expenses) from the total of the fund's
investment and non-investment assets. The share price for each class is
calculated by dividing net assets for that class by the number of shares
outstanding in that class as of the last day of the reporting period.
--------------------------------------------------------------------------
STATEMENT OF OPERATIONS This statement details income earned by the fund and the expenses accrued
by the fund during the reporting period. The Statement of Operations also
shows any net gain or loss the fund realized on the sales of its holdings
during the period, as well as any unrealized gains or losses recognized
over the period. The total of these results represents the fund's net
increase or decrease in net assets from operations.
--------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS This statement demonstrates how the fund's net assets were affected by
its operating results, distributions to shareholders and shareholder
transactions (e.g., subscriptions, redemptions and dividend
reinvestments) during the reporting period. The Statement of Changes in
Net Assets also details changes in the number of shares outstanding.
--------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS These notes disclose the organizational background of the fund, its
significant accounting policies (including those surrounding security
valuation, income recognition and distributions to shareholders), federal
tax information, fees and compensation paid to affiliates and significant
risks and contingencies.
--------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS The financial highlights demonstrate how the fund's net asset value per
share was affected by the fund's operating results. The financial
highlights table also discloses the classes' performance and certain key
ratios (e.g., class expenses and net investment income as a percentage of
average net assets).
26
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INVESTMENT PORTFOLIO ___________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA ASSET ALLOCATION FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - 64.1%
CONSUMER DISCRETIONARY - 9.1%
AUTO COMPONENTS - 0.2%
Autoliv, Inc. 3,110 148,191
BorgWarner, Inc. 1,320 64,258
Continental AG 4,500 349,076
Denso Corp. 8,700 216,678
Johnson Controls, Inc. 1,100 61,336
Modine Manufacturing Co. 320 9,386
Standard Motor Products, Inc. 750 8,775
Visteon Corp. 1 6
-------------
Auto Components Total 857,706
AUTOMOBILES - 0.3%
Nissan Motor Co., Ltd. 17,900 183,500
Renault SA 5,332 476,319
Toyota Motor Corp. 16,000 595,495
-------------
Automobiles Total 1,255,314
DISTRIBUTORS - 0.0%
Building Material Holding Corp. 430 19,126
-------------
Distributors Total 19,126
HOTELS, RESTAURANTS & LEISURE - 2.0%
Applebee's International, Inc. 3,660 100,870
Bally Total Fitness Holding Corp. (a) 1,280 4,454
Bob Evans Farms, Inc. 410 9,614
Brinker International, Inc. (a) 4,130 149,589
Buca, Inc. (a) 1,730 10,863
Carnival Corp. 27,860 1,443,427
Cheesecake Factory, Inc. (a) 4,325 153,321
Darden Restaurants, Inc. 2,600 79,768
Dave & Buster's, Inc. (a) 860 16,082
Gaylord Entertainment Co. (a) 2,200 88,880
Harrah's Entertainment, Inc. 7,054 455,547
Hilton Hotels Corp. 47,320 1,057,602
Landry's Restaurants, Inc. 710 20,533
Lone Star Steakhouse & Saloon 950 27,460
Marcus Corp. 890 18,245
Marriott International, Inc., Class A 27,660 1,849,348
McDonald's Corp. 51,000 1,588,140
Pinnacle Entertainment, Inc. (a) 4,800 80,160
Scientific Games Corp., Class A (a) 5,390 123,161
Starwood Hotels & Resorts
Worldwide, Inc. 7,800 468,234
Total Entertainment Restaurant Corp. (a) 200 2,278
Vail Resorts, Inc. (a) 280 7,070
Wendy's International, Inc. 3,070 119,853
-------------
Hotels, Restaurants & Leisure Total 7,874,499
HOUSEHOLD DURABLES - 0.5%
American Greetings Corp., Class A 700 17,836
Centex Corp. 560 32,071
CSS Industries, Inc. 450 16,447
D.R. Horton, Inc. 1,906 55,731
SHARES VALUE ($)
- ----------------------------------------------------------------------
Daiwa House Industry Co., Ltd. 13,000 149,396
Harman International Industries, Inc. 1,370 121,190
Kimball International, Inc., Class B 960 13,920
Koninklijke (Royal) Philips
Electronics NV 16,590 457,082
Matsushita Electric Industrial Co., Ltd. 23,000 338,977
Pioneer Corp. 7,800 140,350
Russ Berrie & Co., Inc. 300 5,745
Sekisui Chemical Co., Ltd. 19,000 138,063
Sharp Corp. 13,000 196,689
Sony Corp. 2,400 95,593
Tempur-Pedic International, Inc. (a) 21,040 392,606
-------------
Household Durables Total 2,171,696
INTERNET & CATALOG RETAIL - 0.3%
eBay, Inc. (a) 27,250 1,015,335
-------------
Internet & Catalog Retail Total 1,015,335
LEISURE EQUIPMENT & PRODUCTS - 0.2%
Action Performance Companies, Inc. 980 12,966
Fuji Photo Film Co., Ltd. 9,000 329,089
Marvel Enterprises, Inc. (a) 10,160 203,200
Mattel, Inc. 2,100 44,835
-------------
Leisure Equipment & Products Total 590,090
MEDIA - 1.9%
4Kids Entertainment, Inc. (a) 840 18,572
Clear Channel Communications, Inc. 6,790 234,051
Comcast Corp., Class A (a) 13,218 446,504
Cumulus Media, Inc., Class A (a) 5,200 74,100
Grupo Televisa SA, ADR 790 46,452
JC Decaux SA (a) 5,574 152,200
Journal Communications, Inc.,
Class A 570 9,434
Knight-Ridder, Inc. 500 33,625
Lamar Advertising Co., Class A (a) 1,360 54,794
Liberty Corp. 410 16,626
Lin TV Corp., Class A (a) 3,900 66,027
Lions Gate Entertainment Corp. (a) 4,200 46,410
McGraw-Hill Companies, Inc. 12,651 1,103,800
Media General, Inc., Class A 240 14,844
Mediaset S.p.A. 10,400 149,674
New York Times Co., Class A 1,200 43,896
News Corp., Class A 25,710 435,013
News Corp., Class B 14,800 260,628
Omnicom Group 7,200 637,344
Pearson PLC 35,520 432,525
Radio One, Inc., Class D (a) 4,000 59,000
Sinclair Broadcast Group, Inc.,
Class A 8,600 69,058
Time Warner, Inc. (a) 56,272 987,574
TiVo, Inc. (a) 6,300 32,571
Viacom, Inc., Class A 10,716 375,489
Vivendi Universal SA 6,200 189,952
XM Satellite Radio Holdings, Inc.,
Class A (a) 57,225 1,802,587
-------------
Media Total 7,792,750
28 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA ASSET ALLOCATION FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
CONSUMER DISCRETIONARY - (CONTINUED)
MULTILINE RETAIL - 0.8%
Dollar General Corp. 2,900 63,539
Federated Department Stores, Inc. 16,088 1,023,840
Fred's, Inc. 2,900 49,793
J.C. Penney Co., Inc. 13,369 694,119
May Department Stores Co. 1,600 59,232
Nordstrom, Inc. 25,010 1,385,054
ShopKo Stores, Inc. (a) 640 14,221
-------------
Multiline Retail Total 3,289,798
SPECIALTY RETAIL - 2.3%
Abercrombie & Fitch Co., Class A 1,040 59,530
Best Buy Co., Inc. 21,140 1,141,771
Bombay Co., Inc. (a) 9,900 52,470
Borders Group, Inc. 3,700 98,494
Chico's FAS, Inc. (a) 48,220 1,362,697
Cost Plus, Inc. (a) 2,600 69,888
Design Within Reach, Inc. (a) 3,400 53,499
GameStop Corp., Class A (a) 1,030 22,825
Goody's Family Clothing, Inc. 1,230 11,107
Home Depot, Inc. 61,361 2,346,445
Jarden Corp. (a) 3,300 151,404
Limited Brands 21,444 521,089
Lowe's Companies, Inc. 12,435 709,914
Monro Muffler, Inc. (a) 940 24,261
Movie Gallery, Inc. 300 8,604
Office Depot, Inc. (a) 23,518 521,629
OfficeMax, Inc. 1,600 53,600
Pacific Sunwear of California, Inc. (a) 2,300 64,354
Party City Corp. (a) 2,600 38,064
PETCO Animal Supplies, Inc. (a) 1,430 52,638
PETsMART, Inc. 3,250 93,438
Pier 1 Imports, Inc. 700 12,761
Sherwin-Williams Co. 7,342 322,975
Staples, Inc. 39,340 1,236,456
TBC Corp. (a) 260 7,244
TJX Companies, Inc. 3,500 86,205
Urban Outfitters, Inc. (a) 4,330 207,710
-------------
Specialty Retail Total 9,331,072
TEXTILES, APPAREL & LUXURY GOODS - 0.6%
Ashworth, Inc. (a) 5,000 56,950
Burberry Group PLC 26,000 201,005
Carter's, Inc. (a) 1,500 59,625
Coach, Inc. (a) 20,490 1,160,349
Culp, Inc. (a) 310 1,829
Delta Apparel, Inc. 270 7,992
Hampshire Group Ltd. (a) 500 19,975
Jos. A. Bank Clothiers, Inc. (a) 1,800 52,740
Kellwood Co. 640 18,425
NIKE, Inc., Class B 10,370 863,925
Reebok International Ltd. 1,000 44,300
Russell Corp. 700 12,656
SHARES VALUE ($)
- ----------------------------------------------------------------------
Stride Rite Corp. 880 11,704
Tandy Brands Accessories, Inc. 450 6,736
-------------
Textiles, Apparel & Luxury Goods Total 2,518,211
-------------
CONSUMER DISCRETIONARY TOTAL 36,715,597
CONSUMER STAPLES - 5.9%
BEVERAGES - 1.0%
Diageo PLC 31,100 438,004
Pepsi Bottling Group, Inc. 2,800 77,980
PepsiCo, Inc. 61,594 3,266,330
SABMiller PLC 19,440 304,066
-------------
Beverages Total 4,086,380
FOOD & STAPLES RETAILING - 0.3%
BJ's Wholesale Club, Inc. (a) 380 11,803
ITO-YOKADO CO., Ltd. 6,000 239,541
Kroger Co. (a) 3,500 56,105
Wal-Mart Stores, Inc. 17,110 857,382
Whole Foods Market, Inc. 660 67,406
-------------
Food & Staples Retailing Total 1,232,237
FOOD PRODUCTS - 1.2%
Bunge Ltd. 1,420 76,510
Central Garden & Pet Co. (a) 200 8,772
ConAgra Foods, Inc. 15,400 416,108
Corn Products International, Inc. 7,860 204,281
Dean Foods Co. (a) 2,500 85,750
Hershey Foods Corp. 20,941 1,266,093
Hormel Foods Corp. 1,400 43,554
John B. Sanfilippo & Son, Inc. (a) 390 9,586
Kraft Foods, Inc., Class A 35,628 1,177,505
M&F Worldwide Corp. (a) 740 9,872
Nestle SA, Registered Shares 3,066 838,745
Omega Protein Corp. (a) 990 6,752
Royal Numico NV (a) 3,700 151,401
Unilever PLC 36,210 357,527
-------------
Food Products Total 4,652,456
HOUSEHOLD PRODUCTS - 1.4%
Clorox Co. 15,506 976,723
Kao Corp. 9,000 206,940
Kimberly-Clark Corp. 18,785 1,234,738
Procter & Gamble Co. 43,947 2,329,191
Reckitt Benckiser PLC 22,183 704,409
-------------
Household Products Total 5,452,001
PERSONAL PRODUCTS - 1.0%
Alberto-Culver Co. 11,265 539,143
Avon Products, Inc. 37,700 1,618,838
Gillette Co. 40,875 2,063,370
-------------
Personal Products Total 4,221,351
TOBACCO - 1.0%
Altria Group, Inc. 46,656 3,050,836
Imperial Tobacco Group PLC 14,197 372,287
See Accompanying Notes to Financial Statements. | 29
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA ASSET ALLOCATION FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
CONSUMER STAPLES - (CONTINUED)
TOBACCO - (CONTINUED)
Japan Tobacco, Inc. 23 255,305
UST, Inc. 10,660 551,122
-------------
Tobacco Total 4,229,550
-------------
CONSUMER STAPLES TOTAL 23,873,975
ENERGY - 5.1%
ENERGY EQUIPMENT & SERVICES - 1.0%
Baker Hughes, Inc. 1,610 71,629
BJ Services Co. 2,390 123,993
Dawson Geophysical Co. (a) 2,000 48,400
Diamond Offshore Drilling 1,380 68,862
FMC Technologies, Inc. (a) 1,780 59,060
Gulf Island Fabrication, Inc. 340 7,976
Halliburton Co. 16,169 699,309
Lufkin Industries, Inc. 570 27,525
Maverick Tube Corp. (a) 1,600 52,016
Nabors Industries Ltd. (a) 2,830 167,366
National-Oilwell Varco, Inc. (a) 17,980 839,666
Noble Corp. 1,600 89,936
Patterson-UTI Energy, Inc. 2,770 69,306
Saipem S.p.A. 11,700 148,359
Schlumberger Ltd. 6,324 445,716
Smith International, Inc. 7,510 471,102
Stolt Offshore SA (a) 17,600 135,684
Technip SA, ADR 1,000 41,690
Transocean, Inc. (a) 1,800 92,628
Unit Corp. (a) 1,600 72,272
Universal Compression Holdings, Inc. (a) 500 18,935
Weatherford International Ltd. (a) 3,470 201,052
Willbros Group, Inc. (a) 1,520 30,704
-------------
Energy Equipment & Services Total 3,983,186
OIL & GAS - 4.1%
Amerada Hess Corp. 1,600 153,936
BG Group PLC 38,152 296,212
Bill Barrett Corp. (a) 170 4,915
BP PLC, ADR 44,902 2,801,885
Brigham Exploration Co. (a) 1,090 10,061
Carrizo Oil & Gas, Inc. (a) 1,570 26,674
ChevronTexaco Corp. 13,497 787,010
Cimarex Energy Co. (a) 350 13,650
ConocoPhillips 23,669 2,552,465
Edge Petroleum Corp. (a) 3,000 49,680
EnCana Corp. 10,600 748,550
Energy Partners Ltd. (a) 2,040 52,979
ENI S.p.A. 27,713 719,703
EOG Resources, Inc. 18,850 918,749
Exxon Mobil Corp. 65,275 3,890,390
Harvest Natural Resources, Inc. (a) 1,240 14,744
InterOil Corp. (a) 1,560 54,538
Magnum Hunter Resources, Inc. (a) 1,040 16,754
SHARES VALUE ($)
- ----------------------------------------------------------------------
Marathon Oil Corp. 11,577 543,193
Mission Resources Corp. (a) 7,900 55,932
Murphy Oil Corp. 1,180 116,501
Norsk Hydro ASA 3,800 313,322
OMV AG 500 158,892
Pioneer Drilling Co. (a) 3,900 53,703
Range Resources Corp. 2,810 65,642
Royal Dutch Petroleum Co., N.Y.
Registered Shares 7,225 433,789
Shell Transport & Trading Co., PLC 51,400 460,931
Spinnaker Exploration Co. (a) 1,300 46,189
Stone Energy Corp. (a) 500 24,285
Teekay Shipping Corp. 1,050 47,197
Total SA 3,340 781,651
Ultra Petroleum Corp. (a) 1,440 73,152
Western Gas Resources, Inc. 2,720 93,704
Whiting Petroleum Corp. (a) 380 15,496
Williams Companies, Inc. 3,100 58,311
XTO Energy, Inc. 7,440 244,329
-------------
Oil & Gas Total 16,699,114
-------------
ENERGY TOTAL 20,682,300
FINANCIALS - 12.1%
CAPITAL MARKETS - 1.9%
A.G. Edwards, Inc. 5,102 228,570
Affiliated Managers Group, Inc. (a) 600 37,218
Bank of New York Co., Inc. 37,192 1,080,428
Bear Stearns Companies, Inc. 900 89,910
Credit Suisse Group 4,500 193,166
Deutsche Bank AG, Registered Shares 5,783 498,988
E*TRADE Financial Corp. (a) 11,470 137,640
Franklin Resources, Inc. 6,311 433,250
Goldman Sachs Group, Inc. 20,334 2,236,537
Janus Capital Group, Inc. 33,689 469,962
Jefferies Group, Inc. 2,000 75,360
LaBranche & Co., Inc. (a) 820 7,626
Legg Mason, Inc. 1,400 109,396
Lehman Brothers Holdings, Inc. 900 84,744
Merrill Lynch & Co., Inc. 20,512 1,160,979
Morgan Stanley 8,413 481,644
Nomura Holdings, Inc. 15,000 209,878
optionsXpress Holdings, Inc. (a) 700 11,333
-------------
Capital Markets Total 7,546,629
COMMERCIAL BANKS - 4.1%
ABN AMRO Holding NV 10,944 271,586
Anglo Irish Bank Corp., PLC 10,000 250,234
Australia & New Zealand Banking
Group Ltd. 8,800 140,347
BancFirst Corp. 80 5,522
Banco Bilbao Vizcaya Argentaria SA 17,100 278,468
Banco de Sabadell SA 7,484 187,275
Banco Popolare di Verona E Novara 15,600 291,055
Banco Popular Espanol SA 3,770 243,911
BancorpSouth, Inc. 660 13,622
BancTrust Financial Group, Inc. 450 9,108
Bank of Granite Corp. 640 11,834
30 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA ASSET ALLOCATION FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
FINANCIALS - (CONTINUED)
COMMERCIAL BANKS - (CONTINUED)
Bank of Ireland 14,753 232,979
Bank of Yokohama Ltd. 16,000 97,607
Barclays PLC 55,920 571,141
BNP Paribas SA 8,119 575,283
Boston Private Financial Holdings, Inc. 2,400 57,000
Bryn Mawr Bank Corp. 780 15,928
Capitol Bancorp Ltd. 670 20,267
Chemical Financial Corp. 660 21,453
Chittenden Corp. 900 23,463
City National Corp. 900 62,838
Columbia Banking System, Inc. 500 11,875
Community Trust Bancorp, Inc. 430 12,388
Corus Bankshares, Inc. 590 28,137
Cullen/Frost Bankers, Inc. 900 40,635
DBS Group Holdings Ltd. 27,000 243,685
DNB NOR ASA 32,000 326,659
East-West Bancorp, Inc. 2,600 95,992
First Citizens BancShares, Inc., Class A 100 14,638
First Financial Bankshares, Inc. 320 14,282
First Financial Corp. 460 13,593
Greater Bay Bancorp 510 12,449
Hancock Holding Co. 300 9,750
HBOS PLC 12,200 190,017
HSBC Holdings PLC 45,700 722,139
ITLA Capital Corp. (a) 310 15,488
KBC Groupe SA 1,388 117,065
Main Street Banks, Inc. 700 18,536
Marshall & Ilsley Corp. 7,708 321,809
MASSBANK Corp. 220 8,327
Mercantile Bank Corp. 1,545 63,160
Merchants Bancshares, Inc. 510 13,668
Mid-State Bancshares 910 24,206
Mitsubishi Tokyo Financial Group, Inc. 19 164,824
Mizuho Financial Group, Inc. 79 373,611
National Bank of Greece SA 11,505 389,925
National City Corp. 12,863 430,910
North Fork Bancorporation, Inc. 14,679 407,195
Northrim BanCorp, Inc. 470 11,750
PNC Financial Services Group, Inc. 7,796 401,338
Prosperity Bancshares, Inc. 2,800 74,172
Resona Holdings, Inc. (a) 45,000 90,248
Riggs National Corp. 520 9,927
Royal Bank of Scotland Group PLC 22,687 721,271
Skandinaviska Enskilda Banken AB,
Class A 10,800 204,670
Sterling Bancshares, Inc. 1,520 21,584
Sumitomo Mitsui Financial Group, Inc. 41 277,655
Suncorp-Metway Ltd. 8,100 121,728
TCF Financial Corp. 3,260 88,509
TD Banknorth, Inc. (a) 1,323 41,331
Toronto-Dominion Bank 634 26,216
TriCo Bancshares 1,290 27,025
U.S. Bancorp 60,539 1,744,734
UMB Financial Corp. 410 23,337
SHARES VALUE ($)
- ----------------------------------------------------------------------
UniCredito Italiano S.p.A. 37,100 217,902
UnionBanCal Corp. 1,000 61,250
United Overseas Bank Ltd. 36,000 314,011
Wachovia Corp. 33,478 1,704,365
Wells Fargo & Co. 45,563 2,724,667
Whitney Holding Corp. 460 20,475
Wintrust Financial Corp. 280 13,185
Zions Bancorporation 1,780 122,856
-------------
Commercial Banks Total 16,530,090
CONSUMER FINANCE - 0.3%
Cash America International, Inc. 1,200 26,316
Credit Saison Co., Ltd. 6,200 223,236
First Marblehead Corp. (a) 1,065 61,269
MBNA Corp. 42,602 1,045,879
-------------
Consumer Finance Total 1,356,700
DIVERSIFIED FINANCIAL SERVICES - 2.0%
ACE Cash Express, Inc. (a) 1,900 43,225
Advance America Cash Advance
Centers, Inc. 560 8,669
Ameritrade Holding Corp. (a) 5,910 60,341
Chicago Mercantile Exchange 230 44,627
CIT Group, Inc. 1,600 60,800
Citigroup, Inc. 111,551 5,013,102
Fortis 4,980 141,921
Greenhill & Co., Inc. 2,200 78,760
ING Groep NV 11,720 354,056
JPMorgan Chase & Co. 50,003 1,730,104
Metris Companies, Inc. (a) 1,940 22,485
MFC Bancorp Ltd. 1,560 31,122
MTC Technologies, Inc. (a) 2,600 84,500
National Financial Partners Corp. 1,300 51,740
ORIX Corp. 900 114,761
QC Holdings, Inc. (a) 530 7,966
Takefuji Corp. 1,700 114,491
-------------
Diversified Financial Services Total 7,962,670
INSURANCE - 2.8%
Ace Ltd. 1,000 41,270
Aegon NV 36,691 495,221
Allianz AG, Registered Shares 1,554 197,353
Allstate Corp. 8,780 474,647
Ambac Financial Group, Inc. 11,260 841,685
American International Group, Inc. 43,645 2,418,369
AmerUs Group Co. 260 12,285
Axa 12,400 330,387
Baldwin & Lyons, Inc., Class B 450 11,673
Chubb Corp. 6,450 511,291
Cincinnati Financial Corp. 865 37,723
CNA Surety Corp. (a) 1,000 13,600
Commerce Group, Inc. 180 11,156
Delphi Financial Group, Inc., Class A 570 24,510
Endurance Specialty Holdings Ltd. 1,900 71,896
Fuji Fire & Marine Insurance Co. Ltd. 27,000 92,934
See Accompanying Notes to Financial Statements. | 31
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA ASSET ALLOCATION FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
FINANCIALS - (CONTINUED)
INSURANCE - (CONTINUED)
Genworth Financial, Inc., Class A 1,600 44,032
Harleysville Group, Inc. 780 15,491
Hartford Financial Services Group, Inc. 12,652 867,421
Horace Mann Educators Corp. 760 13,482
Infinity Property & Casualty Corp. 3,000 93,780
Irish Life & Permanent PLC 7,785 138,283
Kansas City Life Insurance Co. 70 3,413
Lincoln National Corp. 25,485 1,150,393
Loews Corp. 800 58,832
Mitsui Sumitomo Insurance Co., Ltd. 28,000 256,742
Nationwide Financial Services, Inc.,
Class A 1,400 50,260
Navigators Group, Inc. (a) 710 23,533
Old Republic International Corp. 2,550 59,390
Philadelphia Consolidated
Holding Co. (a) 900 69,777
Phoenix Companies, Inc. 1,620 20,704
ProCentury Corp. 1,190 12,483
Prudential Financial, Inc. 10,140 582,036
QBE Insurance Group Ltd. 10,000 115,167
Quanta Capital Holdings Ltd. (a) 1,320 10,560
Riunione Adriatica di Sicurta S.p.A. 9,043 212,803
RLI Corp. 470 19,482
Sampo Oyj, Class A 9,900 143,761
UICI 260 6,305
United America Indemnity Ltd.,
Class A (a) 880 16,579
Willis Group Holdings Ltd. 12,533 462,092
XL Capital Ltd., Class A 12,679 917,579
Zurich Financial Services AG (a) 1,148 201,434
-------------
Insurance Total 11,151,814
REAL ESTATE - 0.7%
Alexandria Real Estate Equities, Inc., REIT 320 20,602
American Financial Realty Trust, REIT 790 11,558
Archstone-Smith Trust, REIT 17,896 610,433
AvalonBay Communities, Inc., REIT 7,436 497,394
BioMed Realty Trust, Inc., REIT 1,080 22,248
Boykin Lodging Co., REIT (a) 1,290 12,294
Brandywine Realty Trust, REIT 510 14,484
City Developments Ltd. 23,000 89,860
EastGroup Properties, Inc., REIT 590 22,243
Equity Office Properties Trust, REIT 2,100 63,273
Equity One, Inc., REIT 760 15,648
First Potomac Realty Trust, REIT 680 15,538
Getty Realty Corp., REIT 510 13,030
Gladstone Commercial Corp., REIT 610 10,028
Host Marriott Corp., REIT 5,500 91,080
HouseValues, Inc. (a) 4,600 57,868
Kimco Realty Corp., REIT 10,561 569,238
Mid-America Apartment Communities,
Inc., REIT 590 21,535
SHARES VALUE ($)
- ----------------------------------------------------------------------
Monmouth, REIT 750 6,331
Nationwide Health Properties,
Inc., REIT 1,010 20,412
PS Business Parks, Inc., REIT 670 27,001
St. Joe Co. 1,100 74,030
Sun Hung Kai Properties Ltd. 21,000 190,497
Swire Pacific Ltd., Class A 33,500 265,230
Tanger Factory Outlet Centers,
Inc., REIT 700 15,400
U-Store-It Trust, REIT 460 8,004
Universal Health Realty Income
Trust, REIT 340 9,605
Urstadt Biddle Properties, Inc.,
Class A, REIT 750 11,437
Wharf Holdings Ltd. 37,000 116,939
-------------
Real Estate Total 2,903,240
THRIFTS & MORTGAGE FINANCE - 0.3%
Commercial Capital Bancorp, Inc. 2,800 56,980
Countrywide Financial Corp. 12,516 406,269
Freddie Mac 7,025 443,980
Golden West Financial Corp. 2,400 145,200
PMI Group, Inc. 2,700 102,627
Sovereign Bancorp, Inc. 4,700 104,152
Webster Financial Corp. 1,800 81,738
-------------
Thrifts & Mortgage Finance Total 1,340,946
-------------
FINANCIALS TOTAL 48,792,089
HEALTH CARE - 9.1%
BIOTECHNOLOGY - 0.7%
Amgen, Inc. (a) 21,940 1,277,127
Amylin Pharmaceuticals, Inc. (a) 8,874 155,206
Cell Therapeutics, Inc. (a) 4,000 14,360
Cytogen Corp. (a) 4,600 26,634
Enzo Biochem, Inc. (a) 3,000 43,260
Exact Sciences Corp. (a) 4,700 16,779
Genentech, Inc. (a) 8,500 481,185
Genzyme Corp. (a) 2,680 153,403
Gilead Sciences, Inc. (a) 8,090 289,622
NeoPharm, Inc. (a) 6,410 49,806
Neurocrine Biosciences, Inc. (a) 2,100 79,926
Protein Design Labs, Inc. (a) 3,200 51,168
QLT, Inc. (a) 5,400 69,444
Telik, Inc. (a) 4,700 70,876
-------------
Biotechnology Total 2,778,796
HEALTH CARE EQUIPMENT & SUPPLIES - 2.2%
Alcon, Inc. 11,480 1,025,049
Bausch & Lomb, Inc. 3,127 229,209
Beckman Coulter, Inc. 1,220 81,069
Biomet, Inc. 2,170 78,771
Cardiac Science, Inc. (a) 11,800 13,570
Conceptus, Inc. (a) 4,400 34,320
Cooper Companies, Inc. 13,747 1,002,156
DENTSPLY International, Inc. 600 32,646
Fisher Scientific International, Inc. (a) 980 55,782
32 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA ASSET ALLOCATION FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
HEALTH CARE - (CONTINUED)
HEALTH CARE EQUIPMENT & SUPPLIES - (CONTINUED)
Gen-Probe, Inc. (a) 1,820 81,099
GN Store Nord A/S 12,500 143,576
Integra LifeSciences Holdings Corp. (a) 2,300 81,006
Kinetic Concepts, Inc. (a) 21,300 1,270,545
Medical Action Industries, Inc. (a) 4,200 79,380
Millipore Corp. (a) 800 34,720
Palomar Medical Technologies, Inc. (a) 1,500 40,455
ResMed, Inc. (a) 560 31,584
Shamir Optical Industry Ltd. (a) 1,300 20,085
Smith & Nephew PLC 24,580 230,863
SonoSite, Inc. (a) 2,600 67,548
St. Jude Medical, Inc. (a) 17,210 619,560
STERIS Corp. (a) 700 17,675
Syneron Medical Ltd. (a) 1,100 35,046
Synthes, Inc. 1,200 133,417
Terumo Corp. 3,600 108,465
Thermo Electron Corp. (a) 39,420 996,932
Varian Medical Systems, Inc. (a) 51,740 1,773,647
Varian, Inc. (a) 1,000 37,890
Zimmer Holdings, Inc. (a) 8,080 628,705
-------------
Health Care Equipment & Supplies Total 8,984,770
HEALTH CARE PROVIDERS & SERVICES - 1.5%
Accredo Health, Inc. (a) 1,660 73,721
Advisory Board Co. (a) 2,200 96,140
Aetna, Inc. 12,160 911,392
America Service Group, Inc. (a) 2,288 50,633
American Retirement Corp. (a) 3,900 56,706
BioScrip, Inc. (a) 1,154 6,956
Capital Senior Living Corp. (a) 350 1,964
Caremark Rx, Inc. (a) 18,350 729,963
Cerner Corp. (a) 1,100 57,761
CIGNA Corp. 5,200 464,360
Community Health Systems, Inc. (a) 3,700 129,167
Cross Country Healthcare, Inc. (a) 740 12,402
DaVita, Inc. (a) 4,080 170,748
Genesis HealthCare Corp. (a) 400 17,156
Gentiva Health Services, Inc. (a) 1,010 16,342
HCA, Inc. 1,200 64,284
Hooper Holmes, Inc. 1,940 7,411
Hythiam, Inc. (a) 3,400 29,036
Isolagen, Inc. (a) 4,700 29,563
Kindred Healthcare, Inc. (a) 850 29,835
Laboratory Corp. of America
Holdings (a) 1,000 48,200
LifePoint Hospitals, Inc. (a) 1,600 70,144
Medco Health Solutions, Inc. (a) 1,500 74,355
OCA, Inc. (a) 1,500 6,375
PAREXEL International Corp. (a) 940 22,090
Pediatrix Medical Group, Inc. (a) 370 25,378
Res-Care, Inc. (a) 460 5,755
Stewart Enterprises, Inc., Class A 2,400 14,760
Symbion, Inc. 660 14,104
U.S. Physical Therapy, Inc. (a) 1,900 26,562
SHARES VALUE ($)
- ----------------------------------------------------------------------
United Surgical Partners International,
Inc. (a) 340 15,562
UnitedHealth Group, Inc. 16,240 1,548,971
WellPoint, Inc. (a) 10,340 1,296,119
-------------
Health Care Providers & Services Total 6,123,915
PHARMACEUTICALS - 4.7%
Abbott Laboratories 41,850 1,951,047
Advancis Pharmaceutical Corp. (a) 6,300 23,310
AstraZeneca PLC 13,900 547,404
BioSante Pharmaceuticals, Inc. (a) 3,700 14,800
Bone Care International, Inc. (a) 2,600 67,444
Bradley Pharmaceuticals, Inc. (a) 720 6,883
Bristol-Myers Squibb Co. 16,594 422,483
Caraco Pharmaceutical Laboratories
Ltd. (a) 1,600 13,088
DepoMed, Inc. (a) 10,900 42,946
DOV Pharmaceutical, Inc. (a) 4,500 61,560
Eisai Co. Ltd. 4,000 135,815
Endo Pharmaceuticals Holdings,
Inc. (a) 3,570 80,503
GlaxoSmithKline PLC 37,030 847,996
GlaxoSmithKline PLC, ADR 9,068 416,403
IVAX Corp. (a) 24,500 484,365
Johnson & Johnson 70,829 4,756,876
Medicis Pharmaceutical Corp., Class A 4,910 147,202
Merck & Co., Inc. 19,777 640,181
Nektar Therapeutics (a) 8,010 111,659
Neurochem, Inc. (a) 2,700 32,157
Novartis AG, ADR 38,011 1,778,155
Novartis AG, Registered Shares 9,830 458,528
Noven Pharmaceuticals, Inc. (a) 3,200 54,272
Perrigo Co. 940 18,001
Pfizer, Inc. 100,086 2,629,259
Renovis, Inc. (a) 4,500 36,315
Roche Holding AG 1,700 182,186
Salix Pharmaceuticals Ltd. (a) 4,000 65,960
Sanofi-Aventis 5,650 476,524
Schering AG 1,400 92,864
Shire Pharmaceuticals Group PLC 16,100 183,739
Shire Pharmaceuticals Group PLC, ADR 2,600 89,128
Takeda Pharmaceutical Co., Ltd. 6,200 295,527
Taro Pharmaceuticals Industries Ltd. (a) 1,600 50,496
Teva Pharmaceutical Industries
Ltd., ADR 56,420 1,749,020
-------------
Pharmaceuticals Total 18,964,096
-------------
HEALTH CARE TOTAL 36,851,577
INDUSTRIALS - 7.8%
AEROSPACE & DEFENSE - 1.0%
AAR Corp. (a) 1,070 14,552
DRS Technologies, Inc. (a) 2,500 106,250
Esterline Technologies Corp. (a) 740 25,567
General Dynamics Corp. 10,364 1,109,466
Goodrich Corp. 2,300 88,067
Herley Industries, Inc. (a) 540 9,239
Honeywell International, Inc. 11,780 438,334
See Accompanying Notes to Financial Statements. | 33
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA ASSET ALLOCATION FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
INDUSTRIALS - (CONTINUED)
AEROSPACE & DEFENSE - (CONTINUED)
Kaman Corp., Class A 910 11,330
L-3 Communications Holdings, Inc. 1,970 139,909
Ladish Co., Inc. (a) 1,140 13,452
Northrop Grumman Corp. 1,200 64,776
Precision Castparts Corp. 440 33,884
Singapore Technologies
Engineering Ltd. 98,000 151,966
United Defense Industries, Inc. 2,010 147,574
United Technologies Corp. 16,890 1,717,037
-------------
Aerospace & Defense Total 4,071,403
AIR FREIGHT & LOGISTICS - 0.1%
C.H. Robinson Worldwide, Inc. 2,310 119,034
EGL, Inc. (a) 2,800 63,840
Expeditors International of
Washington, Inc. 1,270 68,008
HUB Group, Inc., Class A (a) 550 34,469
Ryder System, Inc. 340 14,178
UTI Worldwide, Inc. 1,200 83,340
-------------
Air Freight & Logistics Total 382,869
AIRLINES - 0.0%
MAIR Holdings, Inc. (a) 590 5,263
Skywest, Inc. 800 14,872
-------------
Airlines Total 20,135
BUILDING PRODUCTS - 0.5%
American Standard Companies, Inc. 31,940 1,484,571
Masco Corp. 3,750 130,013
NCI Building Systems, Inc. (a) 580 22,388
Nippon Sheet Glass Co., Ltd. 32,000 135,516
Wienerberger AG 6,657 303,039
-------------
Building Products Total 2,075,527
COMMERCIAL SERVICES & SUPPLIES - 1.0%
ABM Industries, Inc. 800 15,384
Angelica Corp. 420 11,760
Avery Dennison Corp. 1,100 68,123
Brink's Co. 3,200 110,720
Casella Waste Systems, Inc., Class A (a) 1,690 22,359
Cendant Corp. 22,165 455,269
Century Business Services, Inc. (a) 1,030 4,223
ChoicePoint, Inc. (a) 3,670 147,204
Consolidated Graphics, Inc. (a) 750 39,450
Corporate Executive Board Co. 4,530 289,693
Danka Business Systems PLC, ADR (a) 1,130 1,808
Educate, Inc. (a) 4,700 65,189
Education Management Corp. (a) 2,000 55,900
Electro Rent Corp. (a) 330 4,429
Healthcare Services Group, Inc. 960 23,280
Imagistics International, Inc. (a) 830 28,992
SHARES VALUE ($)
- ----------------------------------------------------------------------
Intersections, Inc. (a) 3,300 48,015
Laureate Education, Inc. (a) 1,700 72,743
Manpower, Inc. 5,750 250,240
MDC Partners, Inc., Class A (a) 5,100 48,501
Navigant Consulting, Inc. (a) 2,600 70,798
NCO Group, Inc. (a) 2,810 54,936
Randstad Holding NV 11,400 507,568
Republic Services, Inc. 7,967 266,735
Robert Half International, Inc. 4,870 131,295
Sourcecorp, Inc. (a) 510 10,271
TeleTech Holdings, Inc. (a) 1,250 16,150
Waste Management, Inc. 34,510 995,613
-------------
Commercial Services & Supplies Total 3,816,648
CONSTRUCTION & ENGINEERING - 0.3%
Comfort Systems USA, Inc. (a) 1,710 13,253
Dycom Industries, Inc. (a) 750 17,242
EMCOR Group, Inc. (a) 250 11,705
Fluor Corp. 800 44,344
Jacobs Engineering Group, Inc. (a) 3,300 171,336
MasTec, Inc. (a) 270 2,217
Obayashi Corp. 23,000 141,812
Shimizu Corp. 63,000 322,625
Vinci SA 3,510 506,059
Washington Group International, Inc. (a) 480 21,595
-------------
Construction & Engineering Total 1,252,188
ELECTRICAL EQUIPMENT - 0.4%
Acuity Brands, Inc. 1,600 43,200
AMETEK, Inc. 1,600 64,400
C&D Technologies, Inc. 740 7,437
Genlyte Group, Inc. (a) 280 25,191
Hubbell, Inc., Class B 800 40,880
Mitsubishi Electric Corp. 43,000 222,611
Plug Power, Inc. (a) 8,900 58,740
Powell Industries, Inc. (a) 340 6,297
Rockwell Automation, Inc. 19,630 1,111,843
Woodward Governor Co. 280 20,076
-------------
Electrical Equipment Total 1,600,675
INDUSTRIAL CONGLOMERATES - 2.8%
Carlisle Companies, Inc. 1,200 83,724
General Electric Co. 179,280 6,464,837
Hutchison Whampoa Ltd. 31,000 263,323
SembCorp Industries Ltd. 85,000 99,885
Siemens AG, Registered Shares 2,187 173,111
Smiths Group PLC 19,333 310,787
Textron, Inc. 18,025 1,345,025
Tyco International Ltd. 73,390 2,480,582
-------------
Industrial Conglomerates Total 11,221,274
MACHINERY - 1.3%
Agco Corp. (a) 2,300 41,975
Alamo Group, Inc. 360 8,906
Atlas Copco AB, Class B 13,700 599,662
Briggs & Stratton Corp. 530 19,297
Cuno, Inc. (a) 1,500 77,085
34 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA ASSET ALLOCATION FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
INDUSTRIALS - (CONTINUED)
MACHINERY - (CONTINUED)
Deere & Co. 9,436 633,439
Donaldson Co., Inc. 880 28,406
Dover Corp. 1,200 45,348
Eaton Corp. (a) 10,445 683,103
EnPro Industries, Inc. (a) 810 22,275
Harsco Corp. 570 33,978
Ingersoll-Rand Co., Ltd., Class A 14,110 1,123,862
ITT Industries, Inc. 6,300 568,512
Joy Global, Inc. 3,650 127,969
Kadant, Inc. (a) 920 17,066
Kennametal, Inc. 1,000 47,490
Komatsu Ltd. 35,000 263,141
Navistar International Corp. (a) 2,200 80,080
Parker Hannifin Corp. 900 54,828
RAE Systems, Inc. (a) 3,800 11,666
Robbins & Myers, Inc. 690 15,187
Tecumseh Products Co., Class A 340 13,467
Terex Corp. 3,850 166,705
Volvo AB, Class B 7,600 335,884
Wabash National Corp. 2,800 68,320
-------------
Machinery Total 5,087,651
MARINE - 0.0%
Kawasaki Kisen Kaisha Ltd. 25,000 172,567
-------------
Marine Total 172,567
ROAD & RAIL - 0.3%
Burlington Northern Santa Fe Corp. 1,900 102,467
Canadian National Railway Co. 6,290 396,976
Canadian Pacific Railway Ltd. 5,400 195,288
ComfortDelGro Corp., Ltd. 183,000 185,117
Covenant Transport, Inc., Class A (a) 580 10,208
Dollar Thrifty Automotive Group,
Inc. (a) 500 16,390
East Japan Railway Co. 37 198,797
Genesee & Wyoming, Inc., Class A (a) 2,701 69,983
Heartland Express, Inc. 3,150 60,322
Landstar System, Inc. (a) 1,720 56,330
Sirva, Inc. (a) 2,800 19,908
U.S. Xpress Enterprises, Inc., Class A (a) 340 5,559
Werner Enterprises, Inc. 850 16,516
-------------
Road & Rail Total 1,333,861
TRADING COMPANIES & DISTRIBUTORS - 0.1%
Aceto Corp. 4,350 32,277
Alliance Data Systems Corp. (a) 1,600 64,640
Hughes Supply, Inc. 800 23,800
Mitsubishi Corp. 22,000 285,043
United Rentals, Inc. (a) 2,100 42,441
Watsco, Inc. 890 37,469
-------------
Trading Companies & Distributors Total 485,670
-------------
INDUSTRIALS TOTAL 31,520,468
SHARES VALUE ($)
- ----------------------------------------------------------------------
INFORMATION TECHNOLOGY - 9.1%
COMMUNICATIONS EQUIPMENT - 1.6%
Anaren, Inc. (a) 1,020 12,373
Andrew Corp. (a) 7,700 90,167
Audiovox Corp., Class A (a) 2,700 34,398
Avocent Corp. (a) 1,910 49,011
Belden CDT, Inc. 490 10,883
Black Box Corp. 310 11,597
Cisco Systems, Inc. (a) 110,605 1,978,723
Comverse Technology, Inc. (a) 6,610 166,704
Finisar Corp. (a) 13,400 16,750
Foundry Networks, Inc. (a) 5,400 53,460
Harris Corp. 3,020 98,603
Inter-Tel, Inc. 2,045 50,102
Juniper Networks, Inc. (a) 4,030 88,902
NICE Systems Ltd., ADR (a) 2,200 70,884
NMS Communications Corp. (a) 6,100 26,169
Nokia Oyj 19,000 294,628
Nokia Oyj, ADR 94,562 1,459,092
Polycom, Inc. (a) 3,250 55,087
QUALCOMM, Inc. 33,460 1,226,309
Tandberg ASA 27,400 286,182
Telefonaktiebolaget LM Ericsson,
ADR (a) 6,300 177,660
Tellabs, Inc. (a) 19,310 140,963
Tollgrade Communications, Inc. (a) 830 5,727
-------------
Communications Equipment Total 6,404,374
COMPUTERS & PERIPHERALS - 1.8%
ActivCard Corp. (a) 1,240 7,874
Advanced Digital Information Corp. (a) 230 1,886
Apple Computer, Inc. (a) 4,140 172,514
Applied Films Corp. (a) 2,600 60,112
Dell, Inc. (a) 46,285 1,778,270
Electronics for Imaging, Inc. (a) 270 4,817
EMC Corp. (a) 35,450 436,744
Hypercom Corp. (a) 1,490 7,048
Imation Corp. 140 4,865
Intergraph Corp. (a) 300 8,643
International Business Machines Corp. 33,266 3,039,847
Lexmark International, Inc., Class A (a) 10,828 865,915
Network Appliance, Inc. (a) 7,400 204,684
PalmSource, Inc. (a) 3,900 35,256
Pinnacle Systems, Inc. (a) 6,300 35,217
SanDisk Corp. (a) 4,540 126,212
SimpleTech, Inc. (a) 11,000 43,340
Toshiba Corp. 51,000 213,124
-------------
Computers & Peripherals Total 7,046,368
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.3%
Agilent Technologies, Inc. (a) 2,300 51,060
Agilysys, Inc. 630 12,386
Amphenol Corp., Class A 2,300 85,192
Anixter International, Inc. (a) 1,910 69,047
Arrow Electronics, Inc. (a) 2,700 68,445
AVX Corp. 4,000 49,000
Benchmark Electronics, Inc. (a) 410 13,050
See Accompanying Notes to Financial Statements. | 35
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA ASSET ALLOCATION FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
INFORMATION TECHNOLOGY - (CONTINUED)
ELECTRONIC EQUIPMENT & INSTRUMENTS - (CONTINUED)
Brightpoint, Inc. (a) 1,180 22,102
Checkpoint Systems, Inc. (a) 780 13,166
Dolby Laboratories, Inc., Class A (a) 700 16,450
Flextronics International Ltd. (a) 3,300 39,732
FLIR Systems, Inc. (a) 1,100 33,330
Global Imaging Systems, Inc. (a) 2,300 81,558
HOYA Corp. 1,200 132,083
Identix, Inc. (a) 1,540 7,777
Ingram Micro, Inc., Class A (a) 1,300 21,671
Itron, Inc. (a) 2,700 80,028
Littelfuse, Inc. (a) 2,000 57,300
Mettler-Toledo International, Inc. (a) 800 38,000
MTS Systems Corp. 570 16,547
NU Horizons Electronics Corp. (a) 1,310 9,367
OSI Systems, Inc. (a) 510 8,930
Photon Dynamics, Inc. (a) 2,000 38,120
Planar Systems, Inc. (a) 610 5,502
TDK Corp. 2,000 136,934
Vishay Intertechnology, Inc. (a) 840 10,441
-------------
Electronic Equipment & Instruments Total 1,117,218
INTERNET SOFTWARE & SERVICES - 0.4%
Ask Jeeves, Inc. (a) 3,120 87,610
Check Point Software Technologies
Ltd. (a) 8,290 180,225
Corillian Corp. (a) 13,300 46,284
Digital River, Inc. (a) 1,600 49,856
Digitas, Inc. (a) 8,250 83,325
Equinix, Inc. (a) 1,400 59,276
Keynote Systems, Inc. (a) 990 11,751
NIWS Co., Ltd. 84 125,759
Stellent, Inc. (a) 650 5,466
TeleCommunication Systems, Inc.,
Class A (a) 9,400 25,098
VeriSign, Inc. (a) 2,240 64,288
Yahoo!, Inc. (a) 30,980 1,050,222
-------------
Internet Software & Services Total 1,789,160
IT SERVICES - 0.6%
Accenture Ltd., Class A (a) 41,383 999,399
Acxiom Corp. 750 15,697
Affiliated Computer Services, Inc.,
Class A (a) 1,400 74,536
Automatic Data Processing, Inc. 18,887 848,971
Cognizant Technology Solutions
Corp., Class A (a) 10,130 468,006
Computer Horizons Corp. (a) 50 183
DST Systems, Inc. (a) 800 36,944
Inforte Corp. (a) 990 5,346
Lightbridge, Inc. (a) 1,230 7,442
MAXIMUS, Inc. 1,860 62,291
MPS Group, Inc. (a) 2,810 29,533
-------------
IT Services Total 2,548,348
SHARES VALUE ($)
- ----------------------------------------------------------------------
OFFICE ELECTRONICS - 0.3%
Canon, Inc. 6,300 337,904
Xerox Corp. (a) 42,466 643,360
Zebra Technologies Corp., Class A (a) 895 42,503
-------------
Office Electronics Total 1,023,767
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 2.1%
Advanced Micro Devices, Inc. (a) 16,330 263,240
Altera Corp. (a) 44,310 876,452
ASML Holding N.V., N.Y. Registered
Shares (a) 31,550 529,093
Broadcom Corp., Class A (a) 5,730 171,442
Brooks Automation, Inc. (a) 5,200 78,936
Cypress Semiconductor Corp. (a) 4,900 61,740
DSP Group, Inc. (a) 1,600 41,216
Entegris, Inc. (a) 8,600 85,054
Exar Corp. (a) 970 12,998
FEI Co. (a) 2,900 67,135
Integrated Circuit Systems, Inc. (a) 1,600 30,592
Intel Corp. 88,690 2,060,269
IXYS Corp. (a) 7,600 86,944
KLA-Tencor Corp. 2,130 98,001
Leadis Technology, Inc. (a) 3,700 22,126
Linear Technology Corp. 8,410 322,187
Marvell Technology Group Ltd. (a) 12,490 478,867
Mykrolis Corp. (a) 4,300 61,490
National Semiconductor Corp. 30,310 624,689
NVIDIA Corp. (a) 4,290 101,930
Pericom Semiconductor Corp. (a) 800 6,856
Samsung Electronics Co., Ltd.,
Registered Shares, GDR 2,076 513,810
Silicon Image, Inc. (a) 3,700 37,222
Silicon Laboratories, Inc. (a) 4,670 138,746
Silicon Storage Technology, Inc. (a) 7,800 29,016
Standard Microsystems Corp. (a) 410 7,118
Taiwan Semiconductor Manufacturing
Co., Ltd., ADR 51,630 437,822
Teradyne, Inc. (a) 30,940 451,724
Texas Instruments, Inc. 27,970 712,955
Ultratech, Inc. (a) 3,800 55,480
Zoran Corp. (a) 5,100 52,785
-------------
Semiconductors & Semiconductor Equipment Total 8,517,935
SOFTWARE - 2.0%
Amdocs Ltd. (a) 18,950 538,180
Autodesk, Inc. (a) 9,300 276,768
BMC Software, Inc. (a) 5,560 83,400
Business Objects SA, ADR (a) 2,220 59,696
Captaris, Inc. (a) 1,990 8,059
Captiva Software Corp. (a) 5,400 58,482
Citrix Systems, Inc. (a) 6,380 151,972
Epicor Software Corp. (a) 4,700 61,570
FileNET Corp. (a) 2,000 45,560
Hyperion Solutions Corp. (a) 2,460 108,511
Internet Security Systems, Inc. (a) 730 13,359
Lawson Software, Inc. (a) 990 5,841
36 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA ASSET ALLOCATION FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
INFORMATION TECHNOLOGY - (CONTINUED)
SOFTWARE - (CONTINUED)
Magma Design Automation, Inc. (a) 3,900 46,293
Manhattan Associates, Inc. (a) 3,100 63,147
Mercury Interactive Corp. (a) 4,860 230,267
Micromuse, Inc. (a) 14,700 66,591
Microsoft Corp. 185,711 4,490,429
MSC.Software Corp. (a) 1,270 14,135
OpenTV Corp., Class A (a) 12,100 34,364
Oracle Corp. (a) 27,905 348,254
PLATO Learning, Inc. (a) 1,610 12,558
Sage Group PLC 66,200 251,520
ScanSoft, Inc. (a) 8,300 30,876
SeaChange International, Inc. (a) 4,200 54,390
Shanda Interactive Entertainment
Ltd., ADS (a) 2,860 86,372
Sybase, Inc. (a) 610 11,261
Symantec Corp. (a) 33,270 709,649
TIBCO Software, Inc. (a) 7,530 56,098
Transaction Systems Architects, Inc.,
Class A (a) 950 21,992
VERITAS Software Corp. (a) 5,540 128,639
Verity, Inc. (a) 3,300 31,185
-------------
Software Total 8,099,418
-------------
INFORMATION TECHNOLOGY TOTAL 36,546,588
MATERIALS - 2.3%
CHEMICALS - 1.3%
Agrium, Inc. 3,500 63,875
Air Products & Chemicals, Inc. 22,035 1,394,595
Airgas, Inc. 1,960 46,824
BASF AG 3,400 241,088
Celanese Corp., Series A (a) 2,300 41,377
Cytec Industries, Inc. 380 20,615
Eastman Chemical Co. 1,600 94,400
Engelhard Corp. 1,900 57,057
H.B. Fuller Co. 670 19,430
International Flavors & Fragrances, Inc. 1,900 75,050
Landec Corp. (a) 7,200 52,416
Lesco, Inc. (a) 60 870
Lubrizol Corp. 2,100 85,344
Lyondell Chemical Co. 4,300 120,056
Minerals Technologies, Inc. 290 19,076
Nalco Holding Co. (a) 2,900 54,607
Novozymes A/S, Class B 2,850 139,869
Potash Corp. of Saskatchewan, Inc. 4,520 395,545
PPG Industries, Inc. 6,177 441,779
Rohm and Haas Co. 1,800 86,400
Schulman (A.), Inc. 900 15,678
Sensient Technologies Corp. 580 12,505
SHARES VALUE ($)
- ----------------------------------------------------------------------
Shin-Etsu Chemical Co., Ltd. 8,200 310,545
Solvay SA, Class A 1,100 131,140
Stepan Co. 480 11,285
Sumitomo Chemical Co., Ltd. 90,000 444,942
Syngenta AG (a) 4,356 454,808
Teijin Ltd. 29,000 123,894
UAP Holding Corp. (a) 5,100 82,110
-------------
Chemicals Total 5,037,180
CONSTRUCTION MATERIALS - 0.1%
Cemex SA de CV, ADR, Certificate
of Participation 13,300 482,125
Eagle Materials, Inc. 370 29,948
Martin Marietta Materials, Inc. 1,200 67,104
-------------
Construction Materials Total 579,177
CONTAINERS & PACKAGING - 0.1%
AptarGroup, Inc. 330 17,153
Bemis Co., Inc. 1,900 59,128
Crown Holdings, Inc. (a) 3,900 60,684
Greif, Inc., Class A 570 39,718
Packaging Corp. of America 3,600 87,444
Pactiv Corp. (a) 2,300 53,705
-------------
Containers & Packaging Total 317,832
METALS & MINING - 0.2%
Allegheny Technologies, Inc. 4,930 118,862
Alpha Natural Resources, Inc. (a) 340 9,748
AMCOL International Corp. 2,420 45,399
Blue Earth Refineries, Inc. 4,800 --
Carpenter Technology Corp. 400 23,764
Coeur d'Alene Mines Corp. 3,070 11,267
CONSOL Energy, Inc. 1,060 49,841
Freeport-McMoRan Copper & Gold,
Inc., Class B 2,530 100,213
Inco Ltd. (a) 3,840 152,832
Massey Energy Co. 1,320 52,853
Metal Management, Inc. 560 14,381
Peabody Energy Corp. 3,440 159,478
Phelps Dodge Corp. 650 66,125
RTI International Metals, Inc. (a) 1,010 23,634
Steel Technologies, Inc. 410 9,836
-------------
Metals & Mining Total 838,233
PAPER & FOREST PRODUCTS - 0.6%
Georgia-Pacific Corp. 2,900 102,921
MeadWestvaco Corp. 39,241 1,248,649
Mercer International, Inc. (a) 1,730 15,829
P.H. Glatfelter Co. 1,220 17,995
Stora Enso Oyj, Class R 7,900 110,929
UPM-Kymmene Oyj 12,850 284,897
Weyerhaeuser Co. 11,730 803,505
-------------
Paper & Forest Products Total 2,584,725
-------------
MATERIALS TOTAL 9,357,147
See Accompanying Notes to Financial Statements. | 37
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA ASSET ALLOCATION FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
TELECOMMUNICATION SERVICES - 1.8%
DIVERSIFIED TELECOMMUNICATION SERVICES - 1.4%
Belgacom SA 7,700 318,471
BellSouth Corp. 26,499 696,659
Deutsche Telekom AG, Registered Shares 11,253 224,687
France Telecom SA 8,900 266,558
Nippon Telegraph & Telephone Corp. 32 139,993
North Pittsburgh Systems, Inc. 600 11,859
Portugal Telecom, SGPS, SA 14,100 165,263
Qwest Communications
International, Inc. (a) 1 4
Royal Koninklijke KPN NV 20,184 180,570
SBC Communications, Inc. 76,802 1,819,439
Singapore Telecommunications Ltd. 94,000 146,902
Verizon Communications, Inc. 41,385 1,469,168
-------------
Diversified Telecommunication Services Total 5,439,573
WIRELESS TELECOMMUNICATION SERVICES - 0.4%
American Tower Corp., Class A (a) 5,510 100,447
Crown Castle International Corp. (a) 6,550 105,193
Millicom International Cellular SA (a) 4,475 90,708
Mobile TeleSystems, ADR 1,850 65,102
NTT DoCoMo, Inc. 83 139,359
Price Communications Corp. (a) 770 13,475
SpectraSite, Inc. 1,510 87,535
Telephone & Data Systems, Inc. 1,800 146,880
VimpelCom, ADR (a) 1,440 49,565
Vodafone Group PLC 338,200 897,075
-------------
Wireless Telecommunication Services Total 1,695,339
-------------
TELECOMMUNICATION SERVICES TOTAL 7,134,912
UTILITIES - 1.8%
ELECTRIC UTILITIES - 1.5%
ALLETE, Inc. 350 14,647
American Electric Power Co., Inc. 12,869 438,318
Central Vermont Public Service Corp. 840 18,883
CH Energy Group, Inc. 570 26,049
E.ON AG 2,879 247,072
Edison International 2,100 72,912
El Paso Electric Co. (a) 960 18,240
Enel S.p.A. 39,804 380,866
Entergy Corp. 14,021 990,724
Exelon Corp. 18,697 858,005
Fortum Oyj 17,400 338,851
FPL Group, Inc. (a) 11,704 469,916
Maine & Maritimes Corp. 190 4,798
MGE Energy, Inc. 330 10,939
Otter Tail Corp. 480 12,019
PG&E Corp. 17,258 588,498
PPL Corp. 900 48,591
Puget Energy, Inc. 820 18,073
Tokyo Electric Power Co., Inc. 12,000 291,031
TXU Corp. 17,769 1,414,945
-------------
Electric Utilities Total 6,263,377
SHARES VALUE ($)
- ----------------------------------------------------------------------
GAS UTILITIES - 0.1%
Cascade Natural Gas Corp. 360 7,186
Northwest Natural Gas Co. 270 9,766
Tokyo Gas Co., Ltd. 54,000 217,602
WGL Holdings, Inc. 290 8,978
-------------
Gas Utilities Total 243,532
MULTI-UTILITIES & UNREGULATED POWER - 0.2%
Constellation Energy Group 2,400 124,080
Energy East Corp. 2,300 60,306
National Grid Transco PLC 25,700 237,865
Veolia Environnement 11,700 415,041
-------------
Multi-Utilities & Unregulated Power Total 837,292
-------------
UTILITIES TOTAL 7,344,201
TOTAL COMMON STOCKS
(cost of $219,204,987) 258,818,854
PAR ($)
- ----------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES - 10.5%
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS - 0.3%
Federal National Mortgage Association
5.000% 12/25/15 1,200,000 1,204,780
-------------
AGENCY COLLATERALIZED MORTGAGE
OBLIGATIONS TOTAL 1,204,780
-------------
MORTGAGE-BACKED OBLIGATIONS - 10.2%
Federal Home Loan Mortgage Corp.
5.000% 09/01/34 1,959,036 1,918,032
5.500% 09/01/34 2,137,368 2,144,344
6.500% 02/01/11-07/01/31 1,276,202 1,330,924
7.000% 07/01/28-08/01/31 521,400 549,657
7.500% 07/01/15-01/01/30 174,848 186,742
8.000% 09/01/15 73,487 77,589
Federal National Mortgage Association
4.500% 05/01/34 984,947 935,179
5.000% 12/25/15-08/01/33 10,186,868 10,128,733
5.500% 05/01/16-10/01/33 10,461,889 10,524,649
6.000% 01/01/09-06/01/14 374,039 386,070
6.120% 10/01/08 2,303,240 2,269,879
6.500% 03/01/11-10/01/31 1,144,499 1,190,483
7.000% 03/01/15-07/01/32 693,412 731,066
7.500% 06/01/15-08/01/31 330,900 350,605
8.000% 12/01/29-07/01/31 189,169 203,670
TBA:
5.000% 12/01/35 2,500,000 2,443,750
6.000% 12/01/35 2,500,000 2,554,688
Government National Mortgage Association
6.000% 04/15/13-01/15/29 705,369 726,831
6.500% 05/15/13-07/15/31 1,369,487 1,434,036
7.000% 11/15/13-06/15/31 687,156 726,548
7.500% 06/15/23-09/15/29 243,053 260,914
8.000% 07/15/25 35,086 37,853
8.500% 12/15/30 8,566 9,322
9.000% 12/15/17 60,383 65,749
-------------
MORTGAGE-BACKED OBLIGATIONS TOTAL 41,187,313
38 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA ASSET ALLOCATION FUND
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES - (CONTINUED)
TOTAL MORTGAGE-BACKED SECURITIES
(cost of $41,527,522) 42,392,093
CORPORATE FIXED-INCOME BONDS & NOTES - 12.0%
BASIC MATERIALS - 0.5%
CHEMICALS - 0.2%
Airgas, Inc.
6.250% 07/15/14 5,000 5,000
9.125% 10/01/11 250,000 271,875
EquiStar Chemicals LP
10.125% 09/01/08 25,000 27,500
10.625% 05/01/11 85,000 95,838
Ethyl Corp.
8.875% 05/01/10 55,000 58,850
MacDermid, Inc.
9.125% 07/15/11 130,000 140,887
Nalco Co.
7.750% 11/15/11 115,000 120,175
PQ Corp.
7.500% 02/15/13 (b) 10,000 10,000
-------------
Chemicals Total 730,125
FOREST PRODUCTS & PAPER - 0.3%
Boise Cascade LLC
7.125% 10/15/14 (b) 155,000 157,713
Westvaco Corp.
8.200% 01/15/30 645,000 802,754
-------------
Forest Products & Paper Total 960,467
IRON/STEEL - 0.0%
Russel Metals, Inc.
6.375% 03/01/14 130,000 126,750
-------------
Iron/Steel Total 126,750
-------------
BASIC MATERIALS TOTAL 1,817,342
COMMUNICATIONS - 1.4%
ADVERTISING - 0.1%
Lamar Media Corp.
7.250% 01/01/13 300,000 313,875
R.H. Donnelley Finance Corp.
10.875% 12/15/12 (b) 225,000 258,750
-------------
Advertising Total 572,625
MEDIA - 0.7%
Comcast Corp.
7.050% 03/15/33 500,000 559,270
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
Dex Media West LLC/Dex Media
Finance Co.
5.875% 11/15/11 (b) 210,000 201,600
DirecTV Holdings LLC/DirecTV
Financing Co.
8.375% 03/15/13 (b) 275,000 296,312
EchoStar DBS Corp.
5.750% 10/01/08 260,000 256,750
6.625% 10/01/14 (b) 90,000 86,850
Emmis Operating Co.
6.875% 05/15/12 85,000 82,875
Gannett Co., Inc.
5.500% 04/01/07 1,000,000 1,025,000
LIN Television Corp.
6.500% 05/15/13 175,000 170,625
Rogers Cable, Inc.
6.250% 06/15/13 225,000 220,500
7.875% 05/01/12 35,000 37,013
-------------
Media Total 2,936,795
TELECOMMUNICATIONS - 0.6%
Nextel Communications, Inc.
7.375% 08/01/15 250,000 263,750
5.950% 03/15/14 20,000 19,900
Rogers Wireless, Inc.
8.000% 12/15/12 190,000 195,225
7.500% 03/15/15 110,000 113,300
Sprint Capital Corp.
6.125% 11/15/08 825,000 863,956
Verizon Global Funding Corp.
7.750% 12/01/30 700,000 841,904
-------------
Telecommunications Total 2,298,035
-------------
COMMUNICATIONS TOTAL 5,807,455
CONSUMER CYCLICAL - 1.2%
AIRLINES - 0.4%
Continental Airlines, Inc.
7.461% 04/01/15 810,018 753,317
United Air Lines, Inc.
7.032% 10/01/10 (c) 588,021 543,919
9.200% 03/22/08 (d) 1,014,042 466,459
-------------
Airlines Total 1,763,695
ENTERTAINMENT - 0.1%
Cinemark USA, Inc.
9.000% 02/01/13 100,000 108,500
Speedway Motorsports, Inc.
6.750% 06/01/13 162,000 164,025
Warner Music Group
7.375% 04/15/14 125,000 129,688
-------------
Entertainment Total 402,213
See Accompanying Notes to Financial Statements. | 39
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA ASSET ALLOCATION FUND
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED)
CONSUMER CYCLICAL - (CONTINUED)
HOME BUILDERS - 0.1%
KB Home
8.625% 12/15/08 225,000 245,813
Toll Corp.
8.250% 12/01/11 365,000 391,462
-------------
Home Builders Total 637,275
LEISURE TIME - 0.1%
K2, Inc.
7.375% 07/01/14 75,000 77,625
Leslie's Poolmart
7.750% 02/01/13 (b) 80,000 80,800
Royal Caribbean Cruises Ltd.
6.750% 03/15/08 80,000 83,300
6.875% 12/01/13 100,000 105,000
8.750% 02/02/11 80,000 90,900
-------------
Leisure Time Total 437,625
LODGING - 0.3%
Kerzner International, Ltd.
8.875% 08/15/11 55,000 59,125
MGM Mirage, Inc.
6.000% 10/01/09 105,000 103,950
9.750% 06/01/07 50,000 53,875
Park Place Entertainment Corp.
7.875% 03/15/10 40,000 43,500
8.875% 09/15/08 35,000 38,500
9.375% 02/15/07 35,000 37,362
Starwood Hotels & Resorts Worldwide, Inc.
7.875% 05/01/12 150,000 165,375
Station Casinos, Inc.
6.500% 02/01/14 345,000 341,550
Wynn Las Vegas LLC
6.625% 12/01/14 (b) 175,000 166,250
-------------
Lodging Total 1,009,487
RETAIL - 0.2%
AutoNation, Inc.
9.000% 08/01/08 115,000 126,500
Couche-Tard
7.500% 12/15/13 155,000 162,362
Domino's, Inc.
8.250% 07/01/11 115,000 120,175
Group 1 Automotive, Inc.
8.250% 08/15/13 90,000 90,900
Suburban Propane Partners
6.875% 12/15/13 145,000 142,644
-------------
Retail Total 642,581
-------------
CONSUMER CYCLICAL TOTAL 4,892,876
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
CONSUMER NON-CYCLICAL - 1.0%
BEVERAGES - 0.2%
Constellation Brands, Inc.
8.125% 01/15/12 300,000 319,500
Cott Beverages, Inc.
8.000% 12/15/11 300,000 317,250
-------------
Beverages Total 636,750
COMMERCIAL SERVICES - 0.1%
Corrections Corp. of America
6.250% 03/15/13 (b) 50,000 47,250
7.500% 05/01/11 175,000 176,750
Iron Mountain, Inc.
7.750% 01/15/15 10,000 9,875
8.625% 04/01/13 235,000 237,350
United Rentals, Inc.
7.000% 02/15/14 150,000 137,625
-------------
Commercial Services Total 608,850
COSMETICS/PERSONAL CARE - 0.3%
Procter & Gamble Co.
4.750% 06/15/07 1,100,000 1,114,432
-------------
Cosmetics/Personal Care Total 1,114,432
HEALTHCARE SERVICES - 0.3%
Coventry Health Care, Inc.
5.875% 01/15/12 (b) 150,000 150,000
Extendicare Health Services
6.875% 05/01/14 85,000 83,725
9.500% 07/01/10 15,000 16,369
HCA, Inc.
6.950% 05/01/12 210,000 217,951
Province Healthcare Co.
7.500% 06/01/13 225,000 250,312
Select Medical Corp.
7.625% 02/01/15 (b) 85,000 84,575
Triad Hospitals, Inc.
7.000% 05/15/12 225,000 228,375
7.000% 11/15/13 30,000 29,475
-------------
Healthcare Services Total 1,060,782
HOUSEHOLD PRODUCTS/WARES - 0.0%
Scotts Co.
6.625% 11/15/13 175,000 173,250
-------------
Household Products/Wares Total 173,250
PHARMACEUTICALS - 0.1%
AmerisourceBergen Corp.
8.125% 09/01/08 120,000 128,700
Omnicare, Inc.
6.125% 06/01/13 20,000 19,500
8.125% 03/15/11 225,000 236,813
-------------
Pharmaceuticals Total 385,013
-------------
CONSUMER NON-CYCLICAL TOTAL 3,979,077
40 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA ASSET ALLOCATION FUND
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED)
ENERGY - 1.4%
COAL - 0.1%
Arch Western Finance
6.750% 07/01/13 260,000 259,350
Peabody Energy Corp.
5.875% 04/15/16 75,000 72,375
6.875% 03/15/13 255,000 261,375
-------------
Coal Total 593,100
OIL & GAS - 0.9%
Chesapeake Energy Corp.
6.375% 06/15/15 (b) 150,000 150,000
7.500% 09/15/13 150,000 160,125
7.750% 01/15/15 25,000 26,500
Devon Financing Corp.
6.875% 09/30/11 650,000 716,826
Newfield Exploration Co.
6.625% 09/01/14 230,000 240,925
Nexen, Inc.
7.875% 03/15/32 750,000 923,145
Pemex Project Funding Master Trust
7.875% 02/01/09 550,000 592,625
Plains E&P Co.
7.125% 06/15/14 205,000 216,275
Pogo Producing Co.
6.625% 03/15/15 (b) 130,000 130,488
Pride International, Inc.
7.375% 07/15/14 120,000 128,400
Vintage Petroleum, Inc.
7.875% 05/15/11 150,000 157,500
-------------
Oil & Gas Total 3,442,809
OIL & GAS SERVICES - 0.2%
Grant Prideco, Inc.
9.625% 12/01/07 285,000 310,650
Hornbeck Offshore Services, Inc.
6.125% 12/01/14 130,000 128,700
Universal Compression, Inc.
7.250% 05/15/10 155,000 158,100
-------------
Oil & Gas Services Total 597,450
PIPELINES - 0.2%
Kinder Morgan Energy Partners
7.300% 08/15/33 500,000 572,805
MarkWest Energy Partners
6.875% 11/01/14 (b) 115,000 116,725
Williams Companies, Inc.
7.125% 09/01/11 25,000 26,000
8.125% 03/15/12 205,000 223,450
-------------
Pipelines Total 938,980
-------------
ENERGY TOTAL 5,572,339
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
FINANCIALS - 4.1%
BANKS - 0.9%
HSBC Capital Funding LP
9.547% 12/31/49 (b) 800,000 961,896
Rabobank Capital Funding II
5.260% 12/31/49 (b) 1,425,000 1,466,296
Wells Fargo & Co.
3.000% 03/10/08 1,050,000 1,042,293
-------------
Banks Total 3,470,485
CAPITAL MARKETS - 0.2%
Merrill Lynch & Co.
4.125% 01/15/09 575,000 564,167
-------------
Capital Markets Total 564,167
DIVERSIFIED FINANCIAL SERVICES - 1.7%
American Express Credit Corp.
3.000% 05/16/08 800,000 767,064
Citicorp
8.040% 12/15/19 (b) 1,900,000 2,341,313
Ford Motor Credit Co.
7.375% 02/01/11 875,000 871,500
General Motors Acceptance Corp.
6.875% 08/28/12 600,000 535,398
Goldman Sachs Capital I
6.345% 02/15/34 475,000 490,272
International Lease Finance Corp.
6.375% 03/15/09 675,000 712,537
Morgan Stanley
6.750% 04/15/11 570,000 623,540
UFJ Finance Aruba AEC
6.750% 07/15/13 575,000 622,311
-------------
Diversified Financial Services Total 6,963,935
INSURANCE - 0.9%
Florida Windstorm Underwriting Association
7.125% 02/25/19 (b) 1,400,000 1,568,350
Prudential Insurance Co. of America
7.650% 07/01/07 (b) 2,000,000 2,132,260
-------------
Insurance Total 3,700,610
INVESTMENT COMPANIES - 0.2%
Credit Suisse First Boston USA, Inc.
4.625% 01/15/08 900,000 904,797
-------------
Investment Companies Total 904,797
REAL ESTATE INVESTMENT TRUSTS - 0.2%
Health Care Property Investors, Inc.
6.450% 06/25/12 525,000 558,910
Host Marriott LP
6.375% 03/15/15 (b) 90,000 85,725
iStar Financial, Inc.
5.125% 04/01/11 25,000 24,553
7.000% 03/15/08 75,000 78,645
-------------
Real Estate Investment Trusts Total 747,833
-------------
FINANCIALS TOTAL 16,351,827
See Accompanying Notes to Financial Statements. | 41
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA ASSET ALLOCATION FUND
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
CORPORATE FIXED-INCOME BONDS & NOTES - (CONTINUED)
INDUSTRIALS - 1.5%
AEROSPACE & DEFENSE - 0.5%
L-3 Communications Corp.
6.125% 07/15/13 20,000 19,650
7.625% 06/15/12 300,000 319,500
Raytheon Co.
8.300% 03/01/10 1,200,000 1,375,392
TransDigm, Inc.
8.375% 07/15/11 165,000 169,125
-------------
Aerospace & Defense Total 1,883,667
ELECTRONICS - 0.0%
Fisher Scientific International
6.750% 08/15/14 (b) 165,000 168,712
-------------
Electronics Total 168,712
ENVIRONMENTAL CONTROL - 0.2%
Allied Waste North America, Inc.
9.250% 09/01/12 150,000 159,750
Synagro Technologies, Inc.
9.500% 04/01/09 125,000 135,938
Waste Management, Inc.
7.375% 08/01/10 500,000 555,630
-------------
Environmental Control Total 851,318
HAND/MACHINE TOOLS - 0.0%
Kennametal, Inc.
7.200% 06/15/12 125,000 137,880
-------------
Hand/Machine Tools Total 137,880
MACHINERY DIVERSIFIED - 0.0%
Manitowoc Co., Inc.
7.125% 11/01/13 20,000 20,900
Westinghouse Air Brake Technologies Corp.
6.875% 07/31/13 145,000 144,275
-------------
Machinery Diversified Total 165,175
MISCELLANEOUS MANUFACTURING - 0.3%
General Electric Co.
5.000% 02/01/13 1,025,000 1,024,405
-------------
Miscellaneous Manufacturing Total 1,024,405
PACKAGING & CONTAINERS - 0.3%
Ball Corp.
6.875% 12/15/12 325,000 336,375
Jefferson Smurfit Corp.
8.250% 10/01/12 200,000 205,000
Owens-Brockway
6.750% 12/01/14 (b) 25,000 24,625
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
Owens-Illinois, Inc.
7.500% 05/15/10 240,000 246,600
Silgan Holdings, Inc.
6.750% 11/15/13 350,000 353,500
Smurfit-Stone Container Corp.
8.375% 07/01/12 125,000 129,531
-------------
Packaging & Containers Total 1,295,631
TRANSPORTATION - 0.2%
FedEx Corp.
7.530% 09/23/06 243,899 252,231
Offshore Logistics, Inc.
6.125% 06/15/13 155,000 151,125
Teekay Shipping Corp.
8.875% 07/15/11 415,000 469,988
-------------
Transportation Total 873,344
-------------
INDUSTRIALS TOTAL 6,400,132
TECHNOLOGY - 0.0%
SEMICONDUCTORS - 0.0%
Freescale Semiconductor, Inc.
6.875% 07/15/11 150,000 154,125
-------------
Semiconductors Total 154,125
-------------
TECHNOLOGY TOTAL 154,125
UTILITIES - 0.9%
ELECTRIC - 0.9%
AES Corp.
7.750% 03/01/14 250,000 258,125
Dominion Resources, Inc.
6.300% 03/15/33 625,000 648,875
Nevada Power Co.
5.875% 01/15/15 (b) 65,000 63,375
6.500% 04/15/12 50,000 51,375
Northwestern Corp.
5.875% 11/01/14 (b) 10,000 9,938
Public Service Electric & Gas Co.
4.000% 11/01/08 1,125,000 1,100,081
Scottish Power PLC
4.910% 03/15/10 525,000 525,693
Southern Power Co.
6.250% 07/15/12 635,000 684,968
Texas Genco LLC
6.875% 12/15/14 (b) 95,000 95,000
-------------
Electric Total 3,437,430
-------------
UTILITIES TOTAL 3,437,430
TOTAL CORPORATE FIXED-INCOME
BONDS & NOTES
(cost of $48,252,465) 48,412,603
42 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA ASSET ALLOCATION FUND
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
ASSET-BACKED SECURITIES - 3.7%
AmeriCredit Automobile Receivables
Trust 3.930% 10/06/11 950,000 927,219
California Infrastructure
6.420% 12/26/09 2,000,000 2,091,660
Capital One Multi-Asset Execution
Trust 3.650% 07/15/11 1,360,000 1,327,442
Chase Manhattan Auto Owner Trust
3.800% 05/15/08 623,268 624,066
Chemical Bank Master Credit Card
Trust I 5.980% 09/15/08 1,550,000 1,578,334
Citibank Credit Card Issuance Trust
2.900% 05/17/10 1,200,000 1,149,132
4.950% 02/09/09 225,000 228,375
Consumer Funding LLC
5.430% 04/20/15 820,000 846,535
Green Tree Financial Corp.
6.870% 01/15/29 269,256 282,690
Honda Auto Receivables Owner Trust
3.000% 05/18/06 42,131 42,131
Navistar Financials Corp.,
3.250% 10/15/10 2,600,000 2,548,676
Origen Manufactured Housing
3.380% 08/15/17 870,000 844,135
PG&E Energy Recovery Funding LLC
3.870% 06/25/11 990,000 978,387
Providian Gateway Master Trust
3.350% 09/15/11 (b) 250,000 244,030
Standard Credit Card Master Trust
6.550% 10/07/07 1,395,000 1,416,664
-------------
TOTAL ASSET-BACKED SECURITIES
(cost of $15,558,910) 15,129,476
SHARES
- ----------------------------------------------------------------------
INVESTMENT MANAGEMENT COMPANIES - 3.0%
iShares Russell 1000 Value Index Fund 27,062 1,780,950
SPDR Trust Series 1 88,000 10,380,480
-------------
TOTAL INVESTMENT
MANAGEMENT COMPANIES
(cost of $12,343,642) 12,161,430
PAR ($)
- ----------------------------------------------------------------------
GOVERNMENT AGENCIES & OBLIGATIONS - 2.3%
U.S. GOVERNMENT AGENCIES & OBLIGATIONS - 2.3%
Federal Home Loan Mortgage Corp.
4.625% 10/15/14 1,355,000 1,326,514
Federal National Mortgage Association
6.625% 09/15/09 1,900,000 2,064,233
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
U.S. Treasury Bonds
3.500% 11/15/06 1,000,000 996,875
4.750% 05/15/14 1,740,000 1,772,625
6.250% 08/15/23 2,775,000 3,231,032
-------------
U.S. GOVERNMENT
AGENCIES & OBLIGATIONS TOTAL 9,391,279
-------------
TOTAL GOVERNMENT AGENCIES
& OBLIGATIONS
(cost of $9,223,717) 9,391,279
- ----------------------------------------------------------------------
MUNICIPAL BONDS - 0.2%
ILLINOIS - 0.2%
Illinois State Taxable Pension
5.100% 06/01/33 650,000 624,312
-------------
ILLINOIS TOTAL 624,312
-------------
TOTAL MUNICIPAL BONDS
(cost of $577,908) 624,312
SHARES
- ----------------------------------------------------------------------
PREFERRED STOCK - 0.1%
CONSUMER DISCRETIONARY - 0.1%
AUTOMOBILES - 0.1%
Porsche AG 620 450,162
-------------
Automobiles Total 450,162
-------------
CONSUMER DISCRETIONARY TOTAL 450,162
-------------
TOTAL PREFERRED STOCK
(cost of $395,938) 450,162
- ----------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCK - 0.0%
BASIC MATERIALS - 0.0%
CHEMICALS - 0.0%
Celanese Corp. 300 8,325
-------------
Chemicals Total 8,325
-------------
BASIC MATERIALS TOTAL 8,325
TOTAL CONVERTIBLE
PREFERRED STOCK
(cost of $7,500) 8,325
See Accompanying Notes to Financial Statements. | 43
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA ASSET ALLOCATION FUND
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS - 2.0%
COLLATERALIZED MORTGAGE OBLIGATIONS - 0.0%
American Mortgage Trust
8.445% 09/27/22 26,148 23,534
Rural Housing Trust
6.330% 04/01/26 99,352 99,029
-------------
COLLATERALIZED MORTGAGE OBLIGATIONS
TOTAL 122,563
COMMERCIAL MORTGAGE-BACKED SECURITIES - 2.0%
First Union Chase Commercial Mortgage
6.645% 06/15/31 450,000 476,672
GS Mortgage Securities Corp. II
6.620% 10/18/30 2,000,000 2,094,460
JPMorgan Commercial Mortgage
Finance Corp.
6.507% 10/15/35 1,600,000 1,678,320
LB-UBS Commercial Mortgage Trust
6.510% 12/15/26 1,000,000 1,073,120
Wachovia Bank Commercial
Mortgage Trust
3.989% 06/15/35 3,000,000 2,794,350
-------------
COMMERCIAL MORTGAGE-BACKED
SECURITIES TOTAL 8,116,922
-------------
TOTAL COLLATERALIZED
MORTGAGE OBLIGATIONS
(cost of $8,325,680) 8,239,485
- ----------------------------------------------------------------------
SHORT-TERM OBLIGATIONS - 3.1%
U.S. GOVERNMENT AGENCIES - 0.9%
Federal Home Loan Mortgage Corp.
2.680% 04/12/05 3,600,000 3,597,052
-------------
REPURCHASE AGREEMENT - 2.2%
Repurchase agreement with State
Street Bank & Trust Co., dated
03/31/05, due 04/01/05 at 2.450%,
collateralized by U.S. Government
Obligations with various maturities
to 02/15/25, market value of
$8,926,987 (repurchase proceeds
$8,722,594) 8,722,000 8,722,000
-------------
TOTAL SHORT-TERM OBLIGATIONS
(cost of $12,319,052) 12,319,052
VALUE ($)
- ----------------------------------------------------------------------
TOTAL INVESTMENTS - 101.0%
(COST OF $367,737,321) (E) 407,947,071
OTHER ASSETS & LIABILITIES, NET - (1.0)% (4,133,523)
NET ASSETS - 100.0% 403,813,548
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing security.
(b) Security exempt from registration pursuant to Rule 144A under the Securities
Act of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At March 31, 2005,
these securities amounted to $11,098,833, which represents 2.7% of net
assets.
(c) The issuer has filed for bankruptcy protection under Chapter 11, and is in
default of certain debt covenants. Income is being accrued. As of March 31,
2005, the value of this security represents 0.1% of net assets.
(d) The issuer has filed for bankruptcy protection under Chapter 11, and is in
default of certain debt covenants. Income is not being accrued. As of March
31, 2005, the value of this security represents 0.1% of net assets.
(e) Cost for federal income tax purposes is $368,199,673.
At March 31, 2005, the Fund held investments in the following security types:
% OF
SECURITY TYPE NET ASSETS
------------- ----------
Common Stocks 64.1%
Corporate Fixed-Income Bonds & Notes 12.0
Mortgage-Backed Securities 10.5
Asset-Backed Securities 3.7
Investment Management Companies 3.0
Government Agencies & Obligations 2.3
Collateralized Mortgage Obligations 2.0
Municipal Bonds 0.2
Preferred Stock 0.1
Convertible Preferred Stock 0.0
Short-Term Obligations 3.1
Other Assets & Liabilities, Net (1.0)
-----
100.0%
=====
ACRONYM NAME
------- ----
ADR American Depositary Receipt
GDR Global Depositary Receipt
REIT Real Estate Investment Trust
TBA To Be Announced
44 | See Accompanying Notes to Financial Statements.
INVESTMENT PORTFOLIO ___________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA LARGE CAP GROWTH FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - 100.1%
CONSUMER DISCRETIONARY - 19.9%
HOTELS, RESTAURANTS & LEISURE - 5.9%
Carnival Corp. 447,920 23,206,735
Hilton Hotels Corp. 773,700 17,292,195
Marriott International, Inc., Class A 509,230 34,047,118
McDonald's Corp. 370,820 11,547,335
Starwood Hotels & Resorts
Worldwide, Inc. 136,800 8,212,104
-------------
Hotels, Restaurants & Leisure Total 94,305,487
INTERNET & CATALOG RETAIL - 1.1%
eBay, Inc. (a) 463,240 17,260,322
-------------
Internet & Catalog Retail Total 17,260,322
MEDIA - 2.8%
News Corp., Class A 400,110 6,769,861
Omnicom Group 129,370 11,451,833
XM Satellite Radio Holdings,
Inc., Class A (a) 812,010 25,578,315
-------------
Media Total 43,800,009
MULTILINE RETAIL - 1.6%
Nordstrom, Inc. 449,960 24,918,785
-------------
Multiline Retail Total 24,918,785
SPECIALTY RETAIL - 6.4%
Best Buy Co., Inc. 382,840 20,677,188
Chico's FAS, Inc. (a) 729,620 20,619,061
Home Depot, Inc. 627,340 23,989,482
Lowe's Companies, Inc. 226,280 12,918,325
Staples, Inc. 716,370 22,515,509
-------------
Specialty Retail Total 100,719,565
TEXTILES, APPAREL & LUXURY GOODS - 2.1%
Coach, Inc. (a) 324,750 18,390,593
NIKE, Inc., Class B 186,200 15,512,322
-------------
Textiles, Apparel & Luxury Goods Total 33,902,915
-------------
CONSUMER DISCRETIONARY TOTAL 314,907,083
CONSUMER STAPLES - 10.6%
BEVERAGES - 2.1%
PepsiCo, Inc. 612,100 32,459,663
-------------
Beverages Total 32,459,663
FOOD & STAPLES RETAILING - 1.0%
Wal-Mart Stores, Inc. 313,040 15,686,434
-------------
Food & Staples Retailing Total 15,686,434
FOOD PRODUCTS - 0.6%
Hershey Foods Corp. 162,110 9,801,171
-------------
Food Products Total 9,801,171
SHARES VALUE ($)
- ----------------------------------------------------------------------
HOUSEHOLD PRODUCTS - 1.9%
Procter & Gamble Co. 571,320 30,279,960
-------------
Household Products Total 30,279,960
PERSONAL PRODUCTS - 3.4%
Alberto-Culver Co. 182,605 8,739,475
Avon Products, Inc. 627,320 26,937,121
Gillette Co. 370,120 18,683,658
-------------
Personal Products Total 54,360,254
TOBACCO - 1.6%
Altria Group, Inc. 393,560 25,734,888
-------------
Tobacco Total 25,734,888
-------------
CONSUMER STAPLES TOTAL 168,322,370
ENERGY - 2.2%
ENERGY EQUIPMENT & SERVICES - 1.2%
National-Oilwell Varco, Inc. (a) 266,290 12,435,743
Smith International, Inc. 114,390 7,175,685
-------------
Energy Equipment & Services Total 19,611,428
OIL & GAS - 1.0%
EOG Resources, Inc. 313,220 15,266,343
-------------
Oil & Gas Total 15,266,343
-------------
ENERGY TOTAL 34,877,771
FINANCIALS - 7.5%
CAPITAL MARKETS - 1.9%
Goldman Sachs Group, Inc. 178,910 19,678,311
Merrill Lynch & Co., Inc. 168,180 9,518,988
-------------
Capital Markets Total 29,197,299
COMMERCIAL BANKS - 1.1%
Wells Fargo & Co. 287,900 17,216,420
-------------
Commercial Banks Total 17,216,420
CONSUMER FINANCE - 0.4%
MBNA Corp. 278,980 6,848,959
-------------
Consumer Finance Total 6,848,959
DIVERSIFIED FINANCIAL SERVICES - 1.5%
Citigroup, Inc. 517,126 23,239,642
-------------
Diversified Financial Services Total 23,239,642
INSURANCE - 2.6%
American International Group, Inc. 560,680 31,067,279
Prudential Financial, Inc. 185,440 10,644,256
-------------
Insurance Total 41,711,535
-------------
FINANCIALS TOTAL 118,213,855
See Accompanying Notes to Financial Statements. | 45
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA LARGE CAP GROWTH FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
HEALTH CARE - 25.5%
BIOTECHNOLOGY - 2.3%
Amgen, Inc. (a) 383,420 22,318,878
Genentech, Inc. (a) 147,450 8,347,144
Gilead Sciences, Inc. (a) 145,150 5,196,370
-------------
Biotechnology Total 35,862,392
HEALTH CARE EQUIPMENT & SUPPLIES - 7.4%
Alcon, Inc. 206,510 18,439,278
Cooper Companies, Inc. 227,191 16,562,224
Kinetic Concepts, Inc. (a) 310,070 18,495,675
St. Jude Medical, Inc. (a) 304,190 10,950,840
Thermo Electron Corp. (a) 616,550 15,592,550
Varian Medical Systems, Inc. (a) 753,330 25,824,152
Zimmer Holdings, Inc. (a) 143,100 11,134,611
-------------
Health Care Equipment & Supplies Total 116,999,330
HEALTH CARE PROVIDERS & SERVICES - 3.9%
Caremark Rx, Inc. (a) 337,420 13,422,568
UnitedHealth Group, Inc. 290,640 27,721,243
WellPoint, Inc. (a) 170,900 21,422,315
-------------
Health Care Providers & Services Total 62,566,126
PHARMACEUTICALS - 11.9%
Abbott Laboratories 742,860 34,632,133
IVAX Corp. (a) 396,850 7,845,725
Johnson & Johnson 1,073,100 72,069,396
Novartis AG, ADR 533,790 24,970,696
Pfizer, Inc. 908,703 23,871,628
Teva Pharmaceutical Industries
Ltd., ADR 835,646 25,905,026
-------------
Pharmaceuticals Total 189,294,604
-------------
HEALTH CARE TOTAL 404,722,452
INDUSTRIALS - 11.1%
AEROSPACE & DEFENSE - 0.5%
Honeywell International, Inc. 216,380 8,051,500
-------------
Aerospace & Defense Total 8,051,500
BUILDING PRODUCTS - 1.6%
American Standard Companies, Inc. 558,090 25,940,023
-------------
Building Products Total 25,940,023
ELECTRICAL EQUIPMENT - 1.3%
Rockwell Automation, Inc. 348,190 19,721,481
-------------
Electrical Equipment Total 19,721,481
INDUSTRIAL CONGLOMERATES - 5.9%
General Electric Co. 1,363,865 49,180,972
Tyco International Ltd. 1,328,170 44,892,146
-------------
Industrial Conglomerates Total 94,073,118
SHARES VALUE ($)
- ----------------------------------------------------------------------
MACHINERY - 1.8%
Ingersoll-Rand Co., Ltd., Class A 224,790 17,904,524
ITT Industries, Inc. 114,180 10,303,603
-------------
Machinery Total 28,208,127
-------------
INDUSTRIALS TOTAL 175,994,249
INFORMATION TECHNOLOGY - 23.3%
COMMUNICATIONS EQUIPMENT - 4.2%
Cisco Systems, Inc. (a) 2,005,815 35,884,030
Nokia Oyj, ADR 544,270 8,398,086
QUALCOMM, Inc. 619,260 22,695,879
-------------
Communications Equipment Total 66,977,995
COMPUTERS & PERIPHERALS - 5.0%
Dell, Inc. (a) 842,230 32,358,477
EMC Corp. (a) 682,580 8,409,386
International Business Machines Corp. 413,580 37,792,940
-------------
Computers & Peripherals Total 78,560,803
INTERNET SOFTWARE & SERVICES - 1.3%
Yahoo!, Inc. (a) 597,580 20,257,962
-------------
Internet Software & Services Total 20,257,962
IT SERVICES - 0.7%
Automatic Data Processing, Inc. 148,090 6,656,646
Cognizant Technology Solutions
Corp., Class A (a) 105,230 4,861,626
-------------
IT Services Total 11,518,272
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 6.7%
Altera Corp. (a) 753,270 14,899,681
ASML Holding N.V., N.Y.
Registered Shares (a) 578,750 9,705,637
Intel Corp. 1,609,610 37,391,240
Linear Technology Corp. 110,750 4,242,832
National Semiconductor Corp. 512,390 10,560,358
Taiwan Semiconductor
Manufacturing Co., Ltd., ADR 934,420 7,923,882
Teradyne, Inc. (a) 567,400 8,284,040
Texas Instruments, Inc. 511,630 13,041,449
-------------
Semiconductors & Semiconductor Equipment Total 106,049,119
SOFTWARE - 5.4%
Amdocs Ltd. (a) 267,870 7,607,508
Autodesk, Inc. 163,100 4,853,856
Microsoft Corp. 2,287,700 55,293,709
Oracle Corp. (a) 489,910 6,114,077
Symantec Corp. (a) 582,040 12,414,913
-------------
Software Total 86,284,063
-------------
INFORMATION TECHNOLOGY TOTAL 369,648,214
Total Common Stocks
(cost of $1,356,867,153) 1,586,685,994
46 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA LARGE CAP GROWTH FUND
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
SHORT-TERM OBLIGATION - 0.2%
Repurchase agreement with State
Street Bank & Trust Co., dated
03/31/05, due 04/01/05 at 2.450%,
collateralized by a U.S. Treasury
Bond maturing 11/15/16, market
value of $3,579,056 (repurchase
proceeds $3,508,239) 3,508,000 3,508,000
-------------
Total Short-Term Obligation
(cost of $3,508,000) 3,508,000
TOTAL INVESTMENTS - 100.3%
(COST OF $1,360,375,153) (b) 1,590,193,994
OTHER ASSETS & LIABILITIES, NET - (0.3)% (4,249,544)
NET ASSETS - 100.0% 1,585,944,450
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing security.
(b) Cost for federal income tax purposes is $1,360,375,153.
At March 31, 2005, the Fund held investments in the following sectors:
% OF
SECTOR NET ASSETS
------ ----------
Health Care 25.5%
Information Technology 23.3
Consumer Discretionary 19.9
Industrials 11.1
Consumer Staples 10.6
Financials 7.5
Energy 2.2
Short-Term Obligation 0.2
Other Assets & Liabilities, Net (0.3)
----------
100.0%
==========
ACRONYM NAME
------- ----
ADR American Depositary Receipt
See Accompanying Notes to Financial Statements. | 47
INVESTMENT PORTFOLIO ___________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA DISCIPLINED VALUE FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - 99.3%
CONSUMER DISCRETIONARY - 10.1%
AUTOMOBILES - 1.0%
Ford Motor Co. 402,700 4,562,591
-------------
Automobiles Total 4,562,591
HOTELS, RESTAURANTS & LEISURE - 2.6%
McDonald's Corp. 365,400 11,378,556
-------------
Hotels, Restaurants & Leisure Total 11,378,556
MEDIA - 2.2%
Time Warner, Inc. (a) 423,800 7,437,690
Walt Disney Co. 78,900 2,266,797
-------------
Media Total 9,704,487
MULTILINE RETAIL - 1.8%
Dillard's, Inc., Class A 286,700 7,712,230
-------------
Multiline Retail Total 7,712,230
SPECIALTY RETAIL - 2.5%
Barnes & Noble, Inc. (a) 195,100 6,728,999
Toys "R" Us, Inc. (a) 170,700 4,397,232
-------------
Specialty Retail Total 11,126,231
-------------
CONSUMER DISCRETIONARY TOTAL 44,484,095
CONSUMER STAPLES - 7.9%
BEVERAGES - 1.5%
Coca-Cola Co. 160,100 6,671,367
-------------
Beverages Total 6,671,367
FOOD & STAPLES RETAILING - 0.5%
Costco Wholesale Corp. 53,200 2,350,376
-------------
Food & Staples Retailing Total 2,350,376
FOOD PRODUCTS - 0.8%
Tyson Foods, Inc., Class A 203,800 3,399,384
-------------
Food Products Total 3,399,384
HOUSEHOLD PRODUCTS - 1.3%
Procter & Gamble Co. 105,100 5,570,300
-------------
Household Products Total 5,570,300
PERSONAL PRODUCTS - 1.4%
Gillette Co. 126,500 6,385,720
-------------
Personal Products Total 6,385,720
TOBACCO - 2.4%
Altria Group, Inc. 126,800 8,291,452
UST, Inc. 40,600 2,099,020
-------------
Tobacco Total 10,390,472
-------------
CONSUMER STAPLES TOTAL 34,767,619
SHARES VALUE ($)
- ----------------------------------------------------------------------
ENERGY - 13.1%
OIL & GAS - 13.1%
Amerada Hess Corp. 126,600 12,180,186
ChevronTexaco Corp. 187,300 10,921,463
Devon Energy Corp. 220,400 10,524,100
Exxon Mobil Corp. 401,100 23,905,560
-------------
Oil & Gas Total 57,531,309
-------------
ENERGY TOTAL 57,531,309
FINANCIALS - 30.7%
CAPITAL MARKETS - 0.7%
State Street Corp. 66,400 2,903,008
-------------
Capital Markets Total 2,903,008
COMMERCIAL BANKS - 7.7%
City National Corp. 48,100 3,358,342
KeyCorp 67,100 2,177,395
National City Corp. 205,000 6,867,500
U.S. Bancorp 76,700 2,210,494
UnionBanCal Corp. 51,800 3,172,750
Wachovia Corp. 316,500 16,113,015
-------------
Commercial Banks Total 33,899,496
DIVERSIFIED FINANCIAL SERVICES - 7.5%
Citigroup, Inc. 162,800 7,316,232
JPMorgan Chase & Co. 551,000 19,064,600
Principal Financial Group, Inc. 174,500 6,716,505
-------------
Diversified Financial Services Total 33,097,337
INSURANCE - 10.5%
American International Group, Inc. 215,100 11,918,691
Chubb Corp. 75,500 5,984,885
First American Corp. 83,900 2,763,666
Hartford Financial Services Group, Inc. 179,000 12,272,240
Prudential Financial, Inc. 226,700 13,012,580
-------------
Insurance Total 45,952,062
REAL ESTATE - 2.8%
Annaly Mortgage Management,
Inc., REIT 538,000 10,092,880
Rayonier, Inc. 45,197 2,238,608
-------------
Real Estate Total 12,331,488
THRIFTS & MORTGAGE FINANCE - 1.5%
Countrywide Financial Corp. 199,300 6,469,278
-------------
Thrifts & Mortgage Finance Total 6,469,278
-------------
FINANCIALS TOTAL 134,652,669
HEALTH CARE - 2.7%
HEALTH CARE PROVIDERS & SERVICES - 2.1%
AmerisourceBergen Corp. 56,600 3,242,614
Medco Health Solutions, Inc. (a) 118,900 5,893,873
-------------
Health Care Providers & Services Total 9,136,487
48 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA DISCIPLINED VALUE FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
HEALTH CARE - (CONTINUED)
PHARMACEUTICALS - 0.6%
Merck & Co., Inc. 88,600 2,867,982
-------------
Pharmaceuticals Total 2,867,982
-------------
HEALTH CARE TOTAL 12,004,469
INDUSTRIALS - 9.4%
AEROSPACE & DEFENSE - 1.4%
Boeing Co. 43,400 2,537,164
Raytheon Co. 94,800 3,668,760
-------------
Aerospace & Defense Total 6,205,924
COMMERCIAL SERVICES & SUPPLIES - 1.1%
Cendant Corp. 230,100 4,726,254
-------------
Commercial Services & Supplies Total 4,726,254
INDUSTRIAL CONGLOMERATES - 5.2%
General Electric Co. 632,100 22,793,526
-------------
Industrial Conglomerates Total 22,793,526
ROAD & RAIL - 1.2%
Union Pacific Corp. 77,500 5,401,750
-------------
Road & Rail Total 5,401,750
TRADING COMPANIES & DISTRIBUTORS - 0.5%
W.W. Grainger, Inc. 37,900 2,360,033
-------------
Trading Companies & Distributors Total 2,360,033
-------------
INDUSTRIALS TOTAL 41,487,487
INFORMATION TECHNOLOGY - 7.9%
COMPUTERS & PERIPHERALS - 4.0%
Hewlett-Packard Co. 116,800 2,562,592
International Business Machines Corp. 164,600 15,041,148
-------------
Computers & Peripherals Total 17,603,740
IT SERVICES - 0.8%
Computer Sciences Corp. (a) 77,200 3,539,620
-------------
IT Services Total 3,539,620
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 0.7%
Freescale Semiconductor, Inc. (a) 180,700 3,117,075
-------------
Semiconductors & Semiconductor Equipment Total 3,117,075
SOFTWARE - 2.4%
Computer Associates International, Inc. 1,404 38,048
Microsoft Corp. 422,900 10,221,493
-------------
Software Total 10,259,541
-------------
INFORMATION TECHNOLOGY TOTAL 34,519,976
SHARES VALUE ($)
- ----------------------------------------------------------------------
MATERIALS - 6.3%
CHEMICALS - 1.3%
Monsanto Co. 85,900 5,540,550
-------------
Chemicals Total 5,540,550
METALS & MINING - 2.4%
Phelps Dodge Corp. 56,800 5,778,264
Southern Peru Copper Corp. 82,900 4,597,634
-------------
Metals & Mining Total 10,375,898
PAPER & FOREST PRODUCTS - 2.6%
Georgia-Pacific Corp. 326,000 11,569,740
-------------
Paper & Forest Products Total 11,569,740
-------------
MATERIALS TOTAL 27,486,188
TELECOMMUNICATION SERVICES - 4.8%
DIVERSIFIED TELECOMMUNICATION SERVICES - 4.3%
CenturyTel, Inc. 67,400 2,213,416
SBC Communications, Inc. 692,900 16,414,801
-------------
Diversified Telecommunication Services Total 18,628,217
WIRELESS TELECOMMUNICATION SERVICES - 0.5%
Crown Castle International Corp. (a) 141,200 2,267,672
-------------
Wireless Telecommunication Services Total 2,267,672
-------------
TELECOMMUNICATION SERVICES TOTAL 20,895,889
UTILITIES - 6.4%
ELECTRIC UTILITIES - 3.6%
American Electric Power Co., Inc. 70,000 2,384,200
PG&E Corp. 287,700 9,810,570
TECO Energy, Inc. 237,800 3,728,704
-------------
Electric Utilities Total 15,923,474
MULTI-UTILITIES & UNREGULATED POWER - 2.8%
Duke Energy Corp. 433,600 12,145,136
-------------
Multi-Utilities & Unregulated Power Total 12,145,136
-------------
UTILITIES TOTAL 28,068,610
Total Common Stocks
(cost of $392,979,409) 435,898,311
See Accompanying Notes to Financial Statements. | 49
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA DISCIPLINED VALUE FUND
PAR ($) VALUE ($)
- ----------------------------------------------------------------------
SHORT-TERM OBLIGATION - 0.7%
Repurchase agreement with State
Street Bank & Trust Co., dated
03/31/05, due 04/01/05 at 2.450%,
collateralized by a U.S. Treasury
Bond maturing 08/15/23, market
value of $3,008,756 (repurchase
proceeds $2,947,201) 2,947,000 2,947,000
-------------
Total Short-Term Obligation
(cost of $2,947,000) 2,947,000
TOTAL INVESTMENTS - 100.0%
(COST OF $395,926,409)(b) 438,845,311
OTHER ASSETS & LIABILITIES, NET - 0.0% 168,965
NET ASSETS - 100.0% 439,014,276
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing security.
(b) Cost for federal income tax purposes is $395,926,409.
At March 31, 2005, the Fund held investments in the following sectors:
% OF
SECTOR NET ASSETS
------ ----------
Financials 30.7%
Energy 13.1
Consumer Discretionary 10.1
Industrials 9.4
Consumer Staples 7.9
Information Technology 7.9
Utilities 6.4
Materials 6.3
Telecommunication Services 4.8
Health Care 2.7
Short-Term Obligation 0.7
Other Assets & Liabilities, Net 0.0
----------
100.0%
==========
ACRONYM NAME
------- ----
REIT Real Estate Investment Trust
50 | See Accompanying Notes to Financial Statements.
INVESTMENT PORTFOLIO ___________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA LARGE CAP CORE FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - 98.3%
CONSUMER DISCRETIONARY - 15.3%
AUTOMOBILES - 1.3%
General Motors Corp. 251,580 7,393,936
-------------
Automobiles Total 7,393,936
HOTELS, RESTAURANTS & LEISURE - 1.4%
Darden Restaurants, Inc. 74,300 2,279,524
McDonald's Corp. 65,800 2,049,012
Yum! Brands, Inc. 63,600 3,295,116
-------------
Hotels, Restaurants & Leisure Total 7,623,652
HOUSEHOLD DURABLES - 0.4%
Lennar Corp., Class A 41,300 2,340,884
-------------
Household Durables Total 2,340,884
INTERNET & CATALOG RETAIL - 0.6%
Amazon.com, Inc. (a) 65,640 2,249,483
eBay, Inc. (a) 28,840 1,074,578
-------------
Internet & Catalog Retail Total 3,324,061
LEISURE EQUIPMENT & PRODUCTS - 0.3%
Hasbro, Inc. 73,860 1,510,437
-------------
Leisure Equipment & Products Total 1,510,437
MEDIA - 6.5%
Clear Channel Communications, Inc. 41,180 1,419,475
Comcast Corp., Class A (a) 111,752 3,774,983
Liberty Media Corp., Class A (a) 631,940 6,553,218
Liberty Media International,
Inc., Class A (a) 23,173 1,013,587
McGraw-Hill Companies, Inc. 41,000 3,577,250
News Corp., Class A 551,870 9,337,640
Time Warner, Inc. (a) 273,070 4,792,378
Viacom, Inc., Class B 185,920 6,475,594
-------------
Media Total 36,944,125
MULTILINE RETAIL - 3.4%
J.C. Penney Co., Inc. 78,200 4,060,144
Kohl's Corp. (a) 200,480 10,350,782
May Department Stores Co. 63,800 2,361,876
Nordstrom, Inc. 42,800 2,370,264
-------------
Multiline Retail Total 19,143,066
SPECIALTY RETAIL - 1.4%
Best Buy Co., Inc. 39,800 2,149,598
RadioShack Corp. 112,950 2,767,275
Staples, Inc. 95,700 3,007,851
-------------
Specialty Retail Total 7,924,724
-------------
CONSUMER DISCRETIONARY TOTAL 86,204,885
SHARES VALUE ($)
- ----------------------------------------------------------------------
CONSUMER STAPLES - 9.0%
BEVERAGES - 3.2%
Coca-Cola Co. 176,660 7,361,422
Diageo PLC, ADR 50,500 2,873,450
PepsiCo, Inc. 146,400 7,763,592
-------------
Beverages Total 17,998,464
FOOD & STAPLES RETAILING - 2.1%
Wal-Mart Stores, Inc. 237,160 11,884,087
-------------
Food & Staples Retailing Total 11,884,087
FOOD PRODUCTS - 0.3%
Sara Lee Corp. 70,310 1,558,070
-------------
Food Products Total 1,558,070
HOUSEHOLD PRODUCTS - 1.2%
Colgate-Palmolive Co. 131,640 6,867,659
-------------
Household Products Total 6,867,659
PERSONAL PRODUCTS - 1.4%
Avon Products, Inc. 77,600 3,332,144
Gillette Co. 86,500 4,366,520
-------------
Personal Products Total 7,698,664
TOBACCO - 0.8%
Altria Group, Inc. 71,875 4,699,906
-------------
Tobacco Total 4,699,906
-------------
CONSUMER STAPLES TOTAL 50,706,850
ENERGY - 5.6%
ENERGY EQUIPMENT & SERVICES - 0.6%
BJ Services Co. 41,700 2,163,396
Transocean, Inc. (a) 27,550 1,417,723
-------------
Energy Equipment & Services Total 3,581,119
OIL & GAS - 5.0%
Apache Corp. 41,900 2,565,537
BP PLC, ADR 22,110 1,379,664
ConocoPhillips 89,700 9,673,248
Devon Energy Corp. 34,460 1,645,465
EOG Resources, Inc. 57,600 2,807,424
Exxon Mobil Corp. 169,300 10,090,280
-------------
Oil & Gas Total 28,161,618
-------------
ENERGY TOTAL 31,742,737
FINANCIALS - 15.2%
CAPITAL MARKETS - 2.3%
A.G. Edwards, Inc. 12,910 578,368
E*TRADE Financial Corp. (a) 336,650 4,039,800
Goldman Sachs Group, Inc. 18,500 2,034,815
Merrill Lynch & Co., Inc. 76,200 4,312,920
Morgan Stanley 34,860 1,995,735
-------------
Capital Markets Total 12,961,638
See Accompanying Notes to Financial Statements. | 51
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA LARGE CAP CORE FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
FINANCIALS - (CONTINUED)
COMMERCIAL BANKS - 3.0%
Fifth Third Bancorp 47,030 2,021,349
Wachovia Corp. 136,000 6,923,760
Wells Fargo & Co. 96,300 5,758,740
Zions Bancorporation 31,700 2,187,934
-------------
Commercial Banks Total 16,891,783
CONSUMER FINANCE - 0.5%
American Express Co. 54,540 2,801,720
-------------
Consumer Finance Total 2,801,720
DIVERSIFIED FINANCIAL SERVICES - 2.6%
Citigroup, Inc. 201,609 9,060,309
JPMorgan Chase & Co. 171,642 5,938,813
-------------
Diversified Financial Services Total 14,999,122
INSURANCE - 5.3%
Ace Ltd. 145,330 5,997,769
AFLAC, Inc. 82,700 3,081,402
Allstate Corp. 29,010 1,568,281
Berkshire Hathaway, Inc., Class B (a) 1,909 5,452,104
Chubb Corp. 43,705 3,464,495
Hartford Financial Services
Group, Inc. 27,900 1,912,824
MetLife, Inc. 46,900 1,833,790
UnumProvident Corp. 396,130 6,742,133
-------------
Insurance Total 30,052,798
THRIFTS & MORTGAGE FINANCE - 1.5%
MGIC Investment Corp. 134,890 8,318,666
-------------
Thrifts & Mortgage Finance Total 8,318,666
-------------
FINANCIALS TOTAL 86,025,727
HEALTH CARE - 12.2%
BIOTECHNOLOGY - 2.5%
Amgen, Inc. (a) 56,832 3,308,191
Genentech, Inc. (a) 39,200 2,219,112
MedImmune, Inc. (a) 216,290 5,149,865
Millennium Pharmaceuticals, Inc. (a) 403,400 3,396,628
-------------
Biotechnology Total 14,073,796
HEALTH CARE EQUIPMENT & SUPPLIES - 0.9%
Bausch & Lomb, Inc. 30,900 2,264,970
Medtronic, Inc. 57,800 2,944,910
-------------
Health Care Equipment & Supplies Total 5,209,880
HEALTH CARE PROVIDERS & SERVICES - 2.4%
Cardinal Health, Inc. 56,800 3,169,440
McKesson Corp. 30,970 1,169,117
SHARES VALUE ($)
- ----------------------------------------------------------------------
WebMD Corp. (a) 533,620 4,535,770
WellPoint, Inc. (a) 37,600 4,713,160
-------------
Health Care Providers & Services Total 13,587,487
PHARMACEUTICALS - 6.4%
Abbott Laboratories 98,800 4,606,056
Barr Pharmaceuticals, Inc. (a) 116,900 5,708,227
Eli Lilly & Co. 48,020 2,501,842
Endo Pharmaceuticals Holdings,
Inc. (a) 207,530 4,679,802
GlaxoSmithKline PLC, ADR 43,300 1,988,336
IVAX Corp. (a) 95,430 1,886,651
Johnson & Johnson 86,800 5,829,488
Merck & Co., Inc. 61,900 2,003,703
Pfizer, Inc. 189,304 4,973,016
Teva Pharmaceutical Industries
Ltd., ADR 64,000 1,984,000
-------------
Pharmaceuticals Total 36,161,121
-------------
HEALTH CARE TOTAL 69,032,284
INDUSTRIALS - 10.2%
AEROSPACE & DEFENSE - 1.1%
United Technologies Corp. 63,200 6,424,912
-------------
Aerospace & Defense Total 6,424,912
AIRLINES - 0.8%
Southwest Airlines Co. 312,530 4,450,427
-------------
Airlines Total 4,450,427
BUILDING PRODUCTS - 0.3%
Masco Corp. 51,900 1,799,373
-------------
Building Products Total 1,799,373
COMMERCIAL SERVICES & SUPPLIES - 3.8%
Allied Waste Industries, Inc. (a) 916,900 6,702,539
ARAMARK Corp., Class B 196,450 5,162,706
Cintas Corp. 154,100 6,365,871
Waste Management, Inc. 113,145 3,264,234
-------------
Commercial Services & Supplies Total 21,495,350
CONSTRUCTION & ENGINEERING - 0.3%
Jacobs Engineering Group, Inc. (a) 27,710 1,438,703
-------------
Construction & Engineering Total 1,438,703
INDUSTRIAL CONGLOMERATES - 1.8%
General Electric Co. 272,100 9,811,926
-------------
Industrial Conglomerates Total 9,811,926
MACHINERY - 1.7%
Dover Corp. 167,300 6,322,267
Ingersoll-Rand Co., Ltd., Class A 42,300 3,369,195
-------------
Machinery Total 9,691,462
52 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA LARGE CAP CORE FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
INDUSTRIALS - (CONTINUED)
ROAD & RAIL - 0.4%
Union Pacific Corp. 32,020 2,231,794
-------------
Road & Rail Total 2,231,794
-------------
INDUSTRIALS TOTAL 57,343,947
INFORMATION TECHNOLOGY - 19.4%
COMMUNICATIONS EQUIPMENT - 4.0%
Cisco Systems, Inc. (a) 492,800 8,816,192
Corning, Inc. (a) 524,860 5,841,692
Lucent Technologies, Inc. (a) 1,740,140 4,785,385
Nortel Networks Corp. (a) 1,035,580 2,827,133
-------------
Communications Equipment Total 22,270,402
COMPUTERS & PERIPHERALS - 4.6%
Hewlett-Packard Co. 251,580 5,519,665
International Business Machines Corp. 114,485 10,461,639
Lexmark International, Inc., Class A (a) 35,900 2,870,923
SanDisk Corp. (a) 201,990 5,615,322
Sun Microsystems, Inc. (a) 412,560 1,666,743
-------------
Computers & Peripherals Total 26,134,292
ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.5%
Agilent Technologies, Inc. (a) 224,420 4,982,124
Celestica, Inc. (a) 275,900 3,727,409
-------------
Electronic Equipment & Instruments Total 8,709,533
IT SERVICES - 0.4%
Cognizant Technology Solutions
Corp., Class A (a) 49,800 2,300,760
-------------
IT Services Total 2,300,760
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 4.5%
Analog Devices, Inc. 31,850 1,151,059
Broadcom Corp., Class A (a) 41,400 1,238,688
Intel Corp. 357,460 8,303,796
KLA-Tencor Corp. 46,200 2,125,662
Linear Technology Corp. 96,120 3,682,357
Marvell Technology Group Ltd. (a) 53,900 2,066,526
Maxim Integrated Products, Inc. 85,360 3,488,663
Taiwan Semiconductor Manufacturing
Co., Ltd., ADR 370,900 3,145,232
-------------
Semiconductors & Semiconductor Equipment Total 25,201,983
SOFTWARE - 4.4%
Adobe Systems, Inc. 50,100 3,365,217
Amdocs Ltd. (a) 110,300 3,132,520
Fair Isaac Corp. 35,450 1,220,898
Microsoft Corp. 537,610 12,994,034
Oracle Corp. (a) 311,230 3,884,150
-------------
Software Total 24,596,819
-------------
INFORMATION TECHNOLOGY TOTAL 109,213,789
SHARES VALUE ($)
- ----------------------------------------------------------------------
MATERIALS - 6.5%
CHEMICALS - 1.5%
BASF AG, ADR 26,700 1,883,685
E.I. du Pont de Nemours & Co. 129,550 6,638,142
-------------
Chemicals Total 8,521,827
CONSTRUCTION MATERIALS - 0.6%
Vulcan Materials Co. 57,129 3,246,641
-------------
Construction Materials Total 3,246,641
CONTAINERS & PACKAGING - 1.4%
Sealed Air Corp. (a) 56,690 2,944,479
Smurfit-Stone Container Corp. (a) 319,190 4,937,869
-------------
Containers & Packaging Total 7,882,348
METALS & MINING - 2.8%
Alcoa, Inc. 188,360 5,724,260
Companhia Vale do Rio Doce, ADR 112,400 2,986,468
International Steel Group, Inc. (a) 123,140 4,864,030
Peabody Energy Corp. 49,400 2,290,184
-------------
Metals & Mining Total 15,864,942
PAPER & FOREST PRODUCTS - 0.2%
Sappi Ltd., ADR 85,700 1,054,110
-------------
Paper & Forest Products Total 1,054,110
-------------
MATERIALS TOTAL 36,569,868
TELECOMMUNICATION SERVICES - 2.9%
DIVERSIFIED TELECOMMUNICATION SERVICES - 2.5%
CenturyTel, Inc. 42,570 1,397,999
Qwest Communications
International, Inc. (a) 555,880 2,056,756
Telefonos de Mexico SA de CV, ADR 111,950 3,865,634
Verizon Communications, Inc. 190,500 6,762,750
-------------
Diversified Telecommunication Services Total 14,083,139
WIRELESS TELECOMMUNICATION SERVICES - 0.4%
Nextel Communications, Inc., Class A (a) 84,110 2,390,406
-------------
Wireless Telecommunication Services Total 2,390,406
-------------
TELECOMMUNICATION SERVICES TOTAL 16,473,545
UTILITIES - 2.0%
ELECTRIC UTILITIES - 1.3%
Exelon Corp. 84,300 3,868,527
PG&E Corp. 108,700 3,706,670
-------------
Electric Utilities Total 7,575,197
See Accompanying Notes to Financial Statements. | 53
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA LARGE CAP CORE FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
UTILITIES - (CONTINUED)
MULTI-UTILITIES & UNREGULATED POWER - 0.7%
Sempra Energy 95,700 3,812,688
-------------
Multi-Utilities & Unregulated Power Total 3,812,688
-------------
UTILITIES TOTAL 11,387,885
Total Common Stocks
(cost of $500,262,124) 554,701,517
PAR ($)
- ----------------------------------------------------------------------
SHORT-TERM OBLIGATION - 0.4%
Repurchase agreement with State
Street Bank & Trust Co., dated
03/31/05, due 04/01/05 at 2.450%,
collateralized by a U.S. Treasury
Bond maturing 02/15/25, market
value of $2,392,765 (repurchase
proceeds $2,340,159) 2,340,000 2,340,000
-------------
Total Short-Term Obligation
(cost of $2,340,000) 2,340,000
TOTAL INVESTMENTS - 98.7%
(COST OF $502,602,124) (b) 557,041,517
OTHER ASSETS & LIABILITIES, NET - 1.3% 7,120,361
NET ASSETS - 100.0% 564,161,878
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing security.
(b) Cost for federal income tax purposes is $502,602,124.
At March 31, 2005, the Fund held investments in the following sectors:
% OF
SECTOR NET ASSETS
------ ----------
Information Technology 19.4%
Consumer Discretionary 15.3
Financials 15.2
Health Care 12.2
Industrials 10.2
Consumer Staples 9.0
Materials 6.5
Energy 5.6
Telecommunication Services 2.9
Utilities 2.0
Short-Term Obligation 0.4
Other Assets & Liabilities, Net 1.3
----------
100.0%
==========
ACRONYM NAME
------- ----
ADR American Depositary Receipt
54 | See Accompanying Notes to Financial Statements.
INVESTMENT PORTFOLIO ___________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA SMALL CAP FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - 94.4%
CONSUMER DISCRETIONARY - 21.8%
AUTO COMPONENTS - 1.1%
Cooper Tire & Rubber Co. 239,870 4,404,013
Keystone Automotive Industries,
Inc. (a) 300,000 6,948,000
R&B, Inc. (a) 321,766 4,266,617
Sauer-Danfoss, Inc. 112,200 2,539,086
-------------
Auto Components Total 18,157,716
HOTELS, RESTAURANTS & LEISURE - 4.9%
Buca, Inc. (a) 374,300 2,350,230
CEC Entertainment, Inc. (a) 227,230 8,316,618
Checkers Drive-In Restaurant,
Inc. (a)(b) 584,400 7,719,924
Famous Dave's of America, Inc. (a) 477,400 6,721,792
Friendly Ice Cream Corp. (a) 230,000 1,872,200
Gaylord Entertainment Co. (a) 203,800 8,233,520
Jack in the Box, Inc. (a) 234,100 8,685,110
O'Charleys, Inc. (a) 627,005 13,631,089
Ruby Tuesday, Inc. 210,500 5,113,045
Ryan's Restaurant Group, Inc. (a) 418,650 6,082,984
Steak n Shake Co. (a) 182,000 3,521,700
Total Entertainment Restaurant
Corp. (a)(b) 501,000 5,706,390
-------------
Hotels, Restaurants & Leisure Total 77,954,602
HOUSEHOLD DURABLES - 0.9%
Bassett Furniture Industries, Inc. 138,850 2,735,345
Kimball International, Inc., Class B 127,400 1,847,300
Yankee Candle Co., Inc. (a) 300,700 9,532,190
-------------
Household Durables Total 14,114,835
INTERNET & CATALOG RETAIL - 0.6%
Alloy, Inc. (a) 787,700 4,631,676
Valuevision Media, Inc., Class A (a) 409,000 5,059,330
-------------
Internet & Catalog Retail Total 9,691,006
LEISURE EQUIPMENT & PRODUCTS - 1.6%
Callaway Golf Co. 367,700 4,706,560
RC2 Corp. (a) 350,900 11,930,600
Steinway Musical Instruments, Inc. (a) 230,600 6,908,776
Topps Co., Inc. 268,900 2,476,569
-------------
Leisure Equipment & Products Total 26,022,505
MEDIA - 3.6%
ADVO, Inc. 360,699 13,508,178
Catalina Marketing Corp. 370,400 9,593,360
Journal Communications, Inc., Class A 179,400 2,969,070
Journal Register Co. (a) 367,500 6,137,250
Paxson Communications Corp. (a) 1,275,400 880,026
Pulitzer, Inc. 112,600 7,175,998
Regent Communications, Inc. (a) 839,100 4,489,185
Scholastic Corp. (a) 249,600 9,207,744
SHARES VALUE ($)
- ----------------------------------------------------------------------
Sinclair Broadcast Group, Inc., Class A 263,100 2,112,693
Young Broadcasting, Inc., Class A (a) 229,400 1,982,016
-------------
Media Total 58,055,520
SPECIALTY RETAIL - 6.7%
AC Moore Arts & Crafts, Inc. (a) 90,000 2,399,400
Buckle, Inc. 349,900 12,215,009
Dress Barn, Inc. (a) 260,700 4,749,954
Gaiam, Inc. (a) 448,600 2,485,244
Gymboree Corp. (a) 557,200 6,987,288
Hancock Fabrics, Inc. 424,300 3,156,792
Haverty Furniture Companies, Inc. 186,200 2,839,550
Hot Topic, Inc. (a) 276,600 6,043,710
Jarden Corp. (a) 124,050 5,691,414
Kirkland's, Inc. (a) 256,200 2,833,572
Lithia Motors, Inc., Class A 354,800 9,086,428
Men's Wearhouse, Inc. (a) 100,000 4,221,000
Monro Muffler, Inc. (a) 220,000 5,678,200
Party City Corp. (a) 499,400 7,311,216
Regis Corp. 178,800 7,318,284
Rent-A-Center, Inc. (a) 197,750 5,400,553
Rush Enterprises, Inc., Class A (a) 150,000 2,352,000
Rush Enterprises, Inc., Class B (a) 200,000 3,372,000
Sports Authority, Inc. (a) 249,600 6,864,000
Stage Stores, Inc. (a) 168,800 6,480,232
-------------
Specialty Retail Total 107,485,846
TEXTILES, APPAREL & LUXURY GOODS - 2.4%
Ashworth, Inc. (a) 300,000 3,417,000
Phillips-Van Heusen Corp. 243,800 6,494,832
Quiksilver, Inc. (a) 212,000 6,154,360
Rocky Shoes & Boots, Inc. (a) 133,600 3,546,946
Tommy Hilfiger Corp. (a) 400,900 4,690,530
Unifirst Corp. 369,900 14,759,010
-------------
Textiles, Apparel & Luxury Goods Total 39,062,678
-------------
CONSUMER DISCRETIONARY TOTAL 350,544,708
CONSUMER STAPLES - 2.5%
FOOD & STAPLES RETAILING - 0.4%
Casey's General Stores, Inc. 260,470 4,680,646
Wild Oats Markets, Inc. (a) 193,300 2,054,779
-------------
Food & Staples Retailing Total 6,735,425
FOOD PRODUCTS - 1.5%
Central Garden & Pet Co. (a) 188,600 8,271,996
Corn Products International, Inc. 291,600 7,578,684
Delta & Pine Land Co. 318,200 8,591,400
-------------
Food Products Total 24,442,080
HOUSEHOLD PRODUCTS - 0.6%
Rayovac Corp. (a) 213,600 8,885,760
-------------
Household Products Total 8,885,760
-------------
CONSUMER STAPLES TOTAL 40,063,265
See Accompanying Notes to Financial Statements. | 55
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA SMALL CAP FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
ENERGY - 5.4%
ENERGY EQUIPMENT & SERVICES - 2.5%
Atwood Oceanics, Inc. (a) 84,500 5,622,630
Core Laboratories NV (a) 130,300 3,344,801
Gulfmark Offshore, Inc. (a) 532,900 13,807,439
Newpark Resources, Inc. (a) 831,000 4,894,590
Oceaneering International, Inc. (a) 180,600 6,772,500
Offshore Logistics, Inc. (a) 100,000 3,332,000
Oil States International, Inc. (a) 145,000 2,979,750
-------------
Energy Equipment & Services Total 40,753,710
OIL & GAS - 2.9%
Houston Exploration Co. (a) 137,500 7,830,625
Southwestern Energy Co. (a) 191,600 10,875,216
Vintage Petroleum, Inc. 181,000 5,694,260
W&T Offshore, Inc. (a) 39,500 820,020
Warren Resources, Inc. (a) 125,100 1,342,323
Western Gas Resources, Inc. 100,000 3,445,000
Whiting Petroleum Corp. (a) 392,400 16,002,072
-------------
Oil & Gas Total 46,009,516
-------------
ENERGY TOTAL 86,763,226
FINANCIALS - 9.5%
COMMERCIAL BANKS - 2.6%
EuroBancshares, Inc. (a) 129,200 2,184,772
First Niagara Financial Group, Inc. 465,500 6,149,255
Matrix Bancorp, Inc. (a) 227,400 2,842,500
NewAlliance Bancshares, Inc. 498,500 6,979,000
Oriental Financial Group 408,140 9,558,639
Republic Bancorp, Inc. 192,540 2,606,992
SNB Bancshares Inc. (a) 233,700 2,643,147
Taylor Capital Group, Inc. 129,628 4,232,354
UMB Financial Corp. 86,500 4,923,580
-------------
Commercial Banks Total 42,120,239
CONSUMER FINANCE - 0.1%
Rewards Network, Inc. (a) 472,600 1,966,016
-------------
Consumer Finance Total 1,966,016
DIVERSIFIED FINANCIAL SERVICES - 0.4%
Prospect Energy Corp. 158,997 2,038,341
QC Holdings, Inc. (a) 225,100 3,383,253
-------------
Diversified Financial Services Total 5,421,594
INSURANCE - 3.2%
AmerUs Group Co. 156,320 7,386,120
Bristol West Holdings, Inc. 256,100 3,969,550
Direct General Corp. 215,100 4,418,154
EMC Insurance Group, Inc. 193,800 3,693,828
Horace Mann Educators Corp. 271,200 4,811,088
Hub International Ltd. 210,000 4,053,000
Midland Co. 178,700 5,630,837
SHARES VALUE ($)
- ----------------------------------------------------------------------
National Interstate Corp. (a) 34,200 574,560
Navigators Group, Inc. (a) 152,800 5,064,556
NYMAGIC, Inc. 105,000 2,488,500
Ohio Casualty Corp. (a) 295,600 6,792,888
Phoenix Companies, Inc. 199,900 2,554,722
-------------
Insurance Total 51,437,803
REAL ESTATE - 1.9%
Acadia Realty Trust, REIT 231,100 3,716,088
Corporate Office Properties Trust, REIT 47,600 1,260,448
First Potomac Realty Trust, REIT 400,000 9,140,000
Gramercy Capital Corp., REIT 272,400 5,311,800
Innkeepers USA Trust, Inc., REIT 466,100 6,017,351
Jones Lang LaSalle, Inc. (a) 86,500 4,035,225
-------------
Real Estate Total 29,480,912
THRIFTS & MORTGAGE FINANCE - 1.3%
Anchor BanCorp Wisconsin, Inc. 83,500 2,347,185
Dime Community Bancshares 283,200 4,304,640
Flagstar BanCorp, Inc. 230,600 4,508,230
Jefferson Bancshares, Inc. 266,400 3,290,040
Webster Financial Corp. 106,300 4,827,083
Willow Grove Bancorp, Inc. 124,099 1,997,994
-------------
Thrifts & Mortgage Finance Total 21,275,172
-------------
FINANCIALS TOTAL 151,701,736
HEALTH CARE - 13.7%
BIOTECHNOLOGY - 1.4%
BioMarin Pharmaceuticals, Inc. (a) 399,850 2,059,227
CV Therapeutics, Inc. (a) 184,200 3,750,312
Lifecell Corp. (a) 580,000 5,162,000
PRAECIS Pharmaceuticals, Inc. (a) 507,100 532,455
Serologicals Corp. (a) 320,500 7,833,020
Strategic Diagnostics, Inc. (a) 653,200 1,953,068
Threshold Pharmaceuticals, Inc. (a) 288,600 1,728,714
-------------
Biotechnology Total 23,018,796
HEALTH CARE EQUIPMENT & SUPPLIES - 5.9%
Analogic Corp. 158,700 6,863,775
Cutera, Inc. (a) 350,000 6,748,000
Cytyc Corp. (a) 174,600 4,017,546
Datascope Corp. 229,150 7,007,407
Haemonetics Corp. (a) 161,900 6,825,704
Invacare Corp. 473,800 21,145,694
Lifecore Biomedical, Inc. (a) 242,100 4,302,117
STAAR Surgical Co. (a) 645,900 2,525,469
SurModics, Inc. (a) 140,000 4,467,400
Thoratec Corp. (a) 749,200 9,155,224
Viasys Healthcare, Inc. (a) 347,000 6,620,760
West Pharmaceutical Services, Inc. 565,700 13,520,230
Wilson Greatbatch Technologies,
Inc. (a) 47,800 871,872
-------------
Health Care Equipment & Supplies Total 94,071,198
56 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA SMALL CAP FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
HEALTH CARE - (CONTINUED)
HEALTH CARE PROVIDERS & SERVICES - 5.0%
LabOne, Inc. (a) 182,300 6,285,704
LifePoint Hospitals, Inc. (a) 164,600 7,216,064
Magellan Health Services, Inc. (a) 176,200 5,999,610
Pediatrix Medical Group, Inc. (a) 212,200 14,554,798
Priority Healthcare Corp., Class B (a) 316,975 6,856,169
Province Healthcare Co. (a) 85,700 2,064,513
PSS World Medical, Inc. (a) 640,700 7,284,759
Psychiatric Solutions, Inc. (a) 58,800 2,704,800
Res-Care, Inc. (a) 1,145,925 14,335,522
Triad Hospitals, Inc. (a) 180,900 9,063,090
U.S. Physical Therapy, Inc. (a) 314,200 4,392,516
-------------
Health Care Providers & Services Total 80,757,545
PHARMACEUTICALS - 1.4%
Acusphere, Inc. (a) 369,500 1,998,995
Critical Therapeutics, Inc. (a) 229,200 1,556,268
KV Pharmaceutical Co., Class A (a) 174,000 4,036,800
Perrigo Co. 288,300 5,520,945
Valeant Pharmaceuticals International 431,526 9,717,966
-------------
Pharmaceuticals Total 22,830,974
-------------
HEALTH CARE TOTAL 220,678,513
INDUSTRIALS - 16.5%
AEROSPACE & DEFENSE - 1.7%
Armor Holdings, Inc. (a) 440,265 16,329,429
Ladish Co., Inc. (a) 276,300 3,260,340
Moog, Inc., Class A (a) 156,000 7,051,200
-------------
Aerospace & Defense Total 26,640,969
AIR FREIGHT & LOGISTICS - 0.3%
EGL, Inc. (a) 230,600 5,257,680
-------------
Air Freight & Logistics Total 5,257,680
BUILDING PRODUCTS - 1.0%
Jacuzzi Brands, Inc. (a) 807,500 7,881,200
NCI Building Systems, Inc. (a) 222,900 8,603,940
-------------
Building Products Total 16,485,140
COMMERCIAL SERVICES & SUPPLIES - 4.8%
Bennett Environmental, Inc. (a) 500,000 1,445,000
Cornell Companies, Inc. (a) 610,200 7,688,520
Danka Business Systems PLC,
ADR (a) 1,600,000 2,560,000
FTI Consulting, Inc. (a) 620,000 12,796,800
G&K Services, Inc., Class A 155,500 6,265,095
HMS Holdings Corp. (a) 194,400 1,438,560
infoUSA, Inc. 358,100 3,763,631
Kforce, Inc. (a) 1,002,604 11,018,618
McGrath Rentcorp 140,800 3,291,904
MPW Industrial Services Group,
Inc. (a) 188,100 445,797
SHARES VALUE ($)
- ----------------------------------------------------------------------
Nashua Corp. (a) 169,600 1,475,520
NCO Group, Inc. (a) 368,330 7,200,851
Nobel Learning Communities, Inc. (a) 103,200 861,720
RemedyTemp, Inc. (a) 125,210 1,233,319
School Specialty, Inc. (a) 116,300 4,554,308
Spherion Corp. (a) 499,200 3,739,008
Tetra Tech, Inc. (a) 463,500 5,849,370
Willis Lease Finance Corp. (a) 87,100 718,575
-------------
Commercial Services & Supplies Total 76,346,596
CONSTRUCTION & ENGINEERING - 2.0%
Chicago Bridge & Iron Co., NV,
N.Y. Registered Shares 385,200 16,960,356
EMCOR Group, Inc. (a) 261,500 12,243,430
Shaw Group, Inc. (a) 132,800 2,895,040
-------------
Construction & Engineering Total 32,098,826
ELECTRICAL EQUIPMENT - 0.3%
General Cable Corp. (a) 221,800 2,677,126
Powell Industries, Inc. (a) 66,400 1,229,728
Wood's (T.B.) Corp. 108,207 596,220
-------------
Electrical Equipment Total 4,503,074
MACHINERY - 4.6%
AGCO Corp. (a) 226,300 4,129,975
Albany International Corp., Class A 600,005 18,528,155
Briggs & Stratton Corp. 173,200 6,306,212
CIRCOR International, Inc. 242,000 5,965,300
Key Technology, Inc. (a)(b) 259,265 2,551,168
Lydall, Inc. (a) 188,600 2,093,460
Oshkosh Truck Corp. 64,500 5,288,355
Reliance Steel & Aluminum Co. 219,500 8,782,195
Terex Corp. (a) 228,344 9,887,295
Thomas Industries, Inc. 136,885 5,426,121
Watts Water Technologies, Inc., Class A 170,000 5,543,700
-------------
Machinery Total 74,501,936
ROAD & RAIL - 1.8%
Arkansas Best Corp. 253,000 9,558,340
Kansas City Southern (a) 403,845 7,778,054
P.A.M. Transportation Services, Inc. (a) 176,400 3,034,080
RailAmerica, Inc. (a) 376,800 4,702,464
Werner Enterprises, Inc. 185,125 3,596,979
-------------
Road & Rail Total 28,669,917
-------------
INDUSTRIALS TOTAL 264,504,138
INFORMATION TECHNOLOGY - 15.0%
COMMUNICATIONS EQUIPMENT - 0.5%
Paradyne Networks Corp. (a) 1,050,000 2,194,500
Performance Technologies, Inc. (a)(b) 751,700 5,006,322
-------------
Communications Equipment Total 7,200,822
COMPUTERS & PERIPHERALS - 1.7%
Cray, Inc. (a) 814,500 2,076,975
Hypercom Corp. (a) 545,800 2,581,634
Imation Corp. 309,500 10,755,125
See Accompanying Notes to Financial Statements. | 57
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA SMALL CAP FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
INFORMATION TECHNOLOGY - (CONTINUED)
COMPUTERS & PERIPHERALS - (CONTINUED)
Maxtor Corp. (a) 334,600 1,780,072
Presstek, Inc. (a) 397,600 3,069,472
Rimage Corp. (a) 162,900 3,233,565
Storage Technology Corp. (a) 100,000 3,080,000
-------------
Computers & Peripherals Total 26,576,843
ELECTRONIC EQUIPMENT & INSTRUMENTS - 3.9%
Agilysys, Inc. 289,600 5,693,536
Benchmark Electronics, Inc. (a) 848,950 27,022,079
Keithley Instruments, Inc. 343,640 5,542,913
LeCroy Corp. (a) 139,500 2,389,635
LSI Industries, Inc. 900,965 10,117,837
Merix Corp. (a) 403,600 4,524,356
Rogers Corp. (a) 82,200 3,288,000
Technitrol, Inc. (a) 313,010 4,670,109
-------------
Electronic Equipment & Instruments Total 63,248,465
INTERNET SOFTWARE & SERVICES - 0.6%
Allscripts Healthcare Solutions, Inc. (a)200,000 2,860,000
Selectica, Inc. (a) 872,800 2,810,416
Tumbleweed Communications
Corp. (a) 815,000 2,249,400
webMethods, Inc. (a) 403,600 2,211,728
-------------
Internet Software & Services Total 10,131,544
IT SERVICES - 2.5%
Analysts International Corp. (a) 623,900 2,258,518
Carreker Corp. (a) 286,500 1,607,265
Computer Task Group, Inc. (a) 900,200 3,582,796
Inforte Corp. (a) 500,000 2,700,000
Integral Systems, Inc. 168,100 3,859,576
ProQuest Co. (a) 394,230 14,251,415
Startek, Inc. 449,900 7,558,320
TNS, Inc. (a) 255,600 4,588,020
-------------
IT Services Total 40,405,910
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 1.9%
Anadigics, Inc. (a) 364,300 524,592
Asyst Technologies, Inc. (a) 155,700 745,803
Fairchild Semiconductor
International, Inc. (a) 587,500 9,006,375
hi/fn, Inc. (a) 500,000 3,625,000
IXYS Corp. (a) 288,300 3,298,152
ON Semiconductor Corp. (a) 1,153,200 4,555,140
Pericom Semiconductor Corp. (a) 400,460 3,431,942
STATS ChipPAC Ltd. (a) 281,184 1,858,626
Ultratech, Inc. (a) 230,600 3,366,760
-------------
Semiconductors & Semiconductor Equipment Total 30,412,390
SOFTWARE - 3.9%
BindView Development Corp. (a) 1,510,500 4,954,440
MAPICS, Inc. (a) 196,800 2,505,264
MapInfo Corp. (a) 249,000 2,997,960
SHARES VALUE ($)
- ----------------------------------------------------------------------
Mediware Information Systems (a) 314,600 3,372,512
Mentor Graphics Corp. (a) 289,200 3,962,040
MSC.Software Corp. (a) 460,515 5,125,532
NetIQ Corp. (a) 288,300 3,295,269
PLATO Learning, Inc. (a) 663,700 5,176,860
Progress Software Corp. (a) 296,500 7,774,230
Sonic Solutions (a) 346,000 5,207,300
Sybase, Inc. (a) 640,600 11,825,476
THQ, Inc. (a) 221,700 6,238,638
-------------
Software Total 62,435,521
-------------
INFORMATION TECHNOLOGY TOTAL 240,411,495
MATERIALS - 6.7%
CHEMICALS - 4.1%
Airgas, Inc. 251,900 6,017,891
Albemarle Corp. 246,360 8,957,650
Cambrex Corp. 296,700 6,319,710
H.B. Fuller Co. 330,860 9,594,940
MacDermid, Inc. 475,200 15,444,000
Olin Corp. 176,900 3,944,870
Sensient Technologies Corp. 307,800 6,636,168
Spartech Corp. 412,800 8,194,080
-------------
Chemicals Total 65,109,309
CONTAINERS & PACKAGING - 1.1%
Greif, Inc., Class A 198,800 13,852,384
Longview Fibre Co. 174,800 3,279,248
Peak International Ltd. (a) 244,650 929,670
-------------
Containers & Packaging Total 18,061,302
METALS & MINING - 1.1%
Brush Engineered Materials, Inc. (a) 290,800 5,533,924
Foundation Coal Holdings, Inc. 43,100 1,013,281
GrafTech International Ltd. (a) 369,500 2,102,455
Hecla Mining Co. (a) 298,300 1,634,684
Northwest Pipe Co. (a) 303,150 7,484,773
-------------
Metals & Mining Total 17,769,117
PAPER & FOREST PRODUCTS - 0.4%
Buckeye Technologies, Inc. (a) 144,900 1,564,920
Glatfelter 331,440 4,888,740
-------------
Paper & Forest Products Total 6,453,660
-------------
MATERIALS TOTAL 107,393,388
TELECOMMUNICATION SERVICES - 0.8%
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.7%
CT Communications, Inc. 208,400 2,194,452
General Communication, Inc.,
Class A (a) 417,300 3,809,949
Premiere Global Services, Inc. (a) 388,300 4,395,556
-------------
Diversified Telecommunication Services Total 10,399,957
58 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA SMALL CAP FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
TELECOMMUNICATION SERVICES - (CONTINUED)
WIRELESS TELECOMMUNICATION SERVICES - 0.1%
LCC International, Inc., Class A (a) 560,700 2,360,547
-------------
Wireless Telecommunication Services Total 2,360,547
-------------
TELECOMMUNICATION SERVICES TOTAL 12,760,504
UTILITIES - 2.5%
ELECTRIC UTILITIES - 0.2%
Idacorp, Inc. 102,800 2,916,436
-------------
Electric Utilities Total 2,916,436
GAS UTILITIES - 1.7%
Cascade Natural Gas Corp. 92,550 1,847,298
New Jersey Resources Corp. 158,750 6,910,388
Northwest Natural Gas Co. 154,700 5,595,499
South Jersey Industries, Inc. 105,500 5,950,200
Southwest Gas Corp. 301,500 7,284,240
-------------
Gas Utilities Total 27,587,625
WATER UTILITIES - 0.6%
American States Water Co. 135,150 3,419,295
Aqua America, Inc. 124,468 3,032,040
California Water Service Group 104,200 3,477,153
-------------
Water Utilities Total 9,928,488
-------------
UTILITIES TOTAL 40,432,549
Total Common Stocks
(cost of $1,249,105,862) 1,515,253,522
PAR ($)
- ----------------------------------------------------------------------
SHORT-TERM OBLIGATION - 3.3%
Repurchase agreement with State
Street Bank & Trust Co., dated 03/31/05,
due 04/01/05 at 2.450%, collateralized
by a U.S. Treasury Bill maturing
05/19/05, market value of $53,684,400
(repurchase proceeds $52,634,582) 52,631,000 52,631,000
-------------
Total Short-Term Obligation
(cost of $52,631,000) 52,631,000
TOTAL INVESTMENTS - 97.7%
(COST OF $1,301,736,862) (c) 1,567,884,522
OTHER ASSETS & LIABILITIES, NET - 2.3% 37,104,305
NET ASSETS - 100.0% 1,604,988,827
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing security.
(b) Investments in affiliated companies at March 31, 2005:
An affiliated company is a company in which the Fund has ownership of at
least 5% of the voting shares outstanding.
Security Name: Checkers Drive-In Restaurant, Inc.
Shares as of 09/30/04: 607,900
Shares sold: 23,500
Shares as of 03/31/05: 584,400
Net realized gain: $ 63,699
Dividend income earned: $ --
Value at end of period: $7,719,924
Security Name: Total Entertainment Restaurant Corp.
Shares as of 09/30/04: 501,000
Shares purchased: --
Shares as of 03/31/05: 501,000
Net realized gain or loss: $ --
Dividend income earned: $ --
Value at end of period: $5,706,390
Security Name: Key Technology, Inc.
Shares as of 09/31/04: 259,265
Shares purchased: --
Shares as of 03/31/05: 259,265
Net realized gain or loss: $ --
Dividend income earned: $ --
Value at end of period: $2,551,168
Security Name: Performance Technologies, Inc.
Shares as of 09/30/04: 609,400
Shares purchased: 142,300
Shares as of 03/31/05: 751,700
Net realized gain or loss: $ --
Dividend income earned: $ --
Value at end of period: $5,006,322
(c) Cost for federal income tax purposes is $1,301,736,862.
At March 31, 2005, the Fund held investments in the following sectors:
% OF
SECTOR NET ASSETS
------ ----------
Consumer Discretionary 21.8%
Industrials 16.5
Information Technology 15.0
Health Care 13.7
Financials 9.5
Materials 6.7
Energy 5.4
Utilities 2.5
Consumer Staples 2.5
Telecommunication Services 0.8
Short-Term Obligation 3.3
Other Assets & Liabilities, Net 2.3
----------
100.0%
==========
ACRONYM NAME
------- ----
ADR American Depositary Receipt
REIT Real Estate Investment Trust
See Accompanying Notes to Financial Statements. | 59
INVESTMENT PORTFOLIO ___________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA SMALL COMPANY EQUITY FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - 88.8%
CONSUMER DISCRETIONARY - 15.1%
HOTELS, RESTAURANTS & LEISURE - 3.3%
Gaylord Entertainment Co. (a) 96,300 3,890,520
Pinnacle Entertainment, Inc. (a) 216,100 3,608,870
Scientific Games Corp., Class A (a) 191,200 4,368,920
-------------
Hotels, Restaurants & Leisure Total 11,868,310
LEISURE EQUIPMENT & PRODUCTS - 0.9%
Marvel Enterprises, Inc. (a) 163,100 3,262,000
-------------
Leisure Equipment & Products Total 3,262,000
MEDIA - 3.8%
Cumulus Media, Inc., Class A (a) 223,200 3,180,600
Lin TV Corp., Class A (a) 105,300 1,782,729
Lions Gate Entertainment Corp. (a) 186,900 2,065,245
Radio One, Inc., Class D (a) 209,300 3,087,175
Sinclair Broadcast Group, Inc., Class A 244,900 1,966,547
TiVo, Inc. (a) 316,600 1,636,822
-------------
Media Total 13,719,118
MULTILINE RETAIL - 0.6%
Fred's, Inc. 122,600 2,105,042
-------------
Multiline Retail Total 2,105,042
SPECIALTY RETAIL - 4.9%
Bombay Co., Inc. (a) 416,000 2,204,800
Cost Plus, Inc. (a) 128,700 3,459,456
Design Within Reach, Inc. (a) 99,400 1,564,059
Jarden Corp. (a) 152,000 6,973,760
Pacific Sunwear of California, Inc. (a) 100,100 2,800,798
Party City Corp. (a) 66,900 979,416
-------------
Specialty Retail Total 17,982,289
TEXTILES, APPAREL & LUXURY GOODS - 1.6%
Ashworth, Inc. (a) 175,100 1,994,389
Carter's, Inc. (a) 64,500 2,563,875
Jos. A. Bank Clothiers, Inc. (a) 44,600 1,306,780
-------------
Textiles, Apparel & Luxury Goods Total 5,865,044
-------------
CONSUMER DISCRETIONARY TOTAL 54,801,803
ENERGY - 6.2%
ENERGY EQUIPMENT & SERVICES - 2.1%
Dawson Geophysical Co. (a) 77,400 1,873,080
Maverick Tube Corp. (a) 83,900 2,727,589
Unit Corp. (a) 72,100 3,256,757
-------------
Energy Equipment & Services Total 7,857,426
OIL & GAS - 4.1%
Edge Petroleum Corp. (a) 140,700 2,329,992
Energy Partners Ltd. (a) 58,400 1,516,648
InterOil Corp. (a) 55,200 1,929,792
Mission Resources Corp. (a) 368,500 2,608,980
Pioneer Drilling Co. (a) 131,800 1,814,886
SHARES VALUE ($)
- ----------------------------------------------------------------------
Spinnaker Exploration Co. (a) 60,300 2,142,459
Western Gas Resources, Inc. 70,400 2,425,280
-------------
Oil & Gas Total 14,768,037
-------------
ENERGY TOTAL 22,625,463
FINANCIALS - 9.5%
CAPITAL MARKETS - 1.1%
Jefferies Group, Inc. 94,600 3,564,528
optionsXpress Holdings, Inc. (a) 33,200 537,508
-------------
Capital Markets Total 4,102,036
COMMERCIAL BANKS - 2.8%
Boston Private Financial Holdings, Inc. 73,800 1,752,750
East-West Bancorp, Inc. 82,000 3,027,440
Main Street Banks, Inc. 36,200 958,576
Mercantile Bank Corp. 46,800 1,913,184
Prosperity Bancshares, Inc. 91,100 2,413,239
-------------
Commercial Banks Total 10,065,189
DIVERSIFIED FINANCIAL SERVICES - 2.7%
ACE Cash Express, Inc. (a) 91,300 2,077,075
Greenhill & Co., Inc. 75,000 2,685,000
MTC Technologies, Inc. (a) 83,500 2,713,750
National Financial Partners Corp. 59,900 2,384,020
-------------
Diversified Financial Services Total 9,859,845
INSURANCE - 1.5%
Infinity Property & Casualty Corp. 89,200 2,788,392
Philadelphia Consolidated
Holding Co. (a) 35,400 2,744,562
-------------
Insurance Total 5,532,954
REAL ESTATE - 0.5%
HouseValues, Inc. (a) 138,300 1,739,814
-------------
Real Estate Total 1,739,814
THRIFTS & MORTGAGE FINANCE - 0.9%
Commercial Capital Bancorp, Inc. 148,100 3,013,835
-------------
Thrifts & Mortgage Finance Total 3,013,835
-------------
FINANCIALS TOTAL 34,313,673
HEALTH CARE - 18.7%
BIOTECHNOLOGY - 4.7%
Cell Therapeutics, Inc. (a) 180,900 649,431
Cytogen Corp. (a) 161,300 933,927
Enzo Biochem, Inc. (a) 101,300 1,460,746
Exact Sciences Corp. (a) 228,800 816,816
NeoPharm, Inc. (a) 303,700 2,359,749
Neurocrine Biosciences, Inc. (a) 50,100 1,906,806
Protein Design Labs, Inc. (a) 157,900 2,524,821
QLT, Inc. (a) 256,600 3,299,876
Telik, Inc. (a) 205,800 3,103,464
-------------
Biotechnology Total 17,055,636
60 | See Accompanying Notes to Financial Statements.
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA SMALL COMPANY EQUITY FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
HEALTH CARE - (CONTINUED)
HEALTH CARE EQUIPMENT & SUPPLIES - 3.9%
Cardiac Science, Inc. (a) 542,700 624,105
Conceptus, Inc. (a) 152,400 1,188,720
Integra LifeSciences Holdings Corp. (a) 67,400 2,373,828
Medical Action Industries, Inc. (a) 199,409 3,768,830
Palomar Medical Technologies, Inc. (a) 67,900 1,831,263
Shamir Optical Industry Ltd. (a) 59,500 919,275
SonoSite, Inc. (a) 79,245 2,058,785
Syneron Medical Ltd. (a) 40,800 1,299,888
-------------
Health Care Equipment & Supplies Total 14,064,694
HEALTH CARE PROVIDERS & SERVICES - 3.6%
Advisory Board Co. (a) 63,200 2,761,840
America Service Group, Inc. (a) 91,880 2,033,305
American Retirement Corp. (a) 133,700 1,943,998
Hythiam, Inc. (a) 120,800 1,031,632
Isolagen, Inc. (a) 230,000 1,446,700
LifePoint Hospitals, Inc. (a) 74,900 3,283,616
U.S. Physical Therapy, Inc. (a) 53,200 743,736
-------------
Health Care Providers & Services Total 13,244,827
PHARMACEUTICALS - 6.5%
Advancis Pharmaceutical Corp. (a) 253,863 939,293
BioSante Pharmaceuticals, Inc. (a) 153,900 615,600
Bone Care International, Inc. (a) 125,400 3,252,876
Caraco Pharmaceutical
Laboratories Ltd. (a) 88,800 726,384
DepoMed, Inc. (a) 462,500 1,822,250
DOV Pharmaceutical, Inc. (a) 208,100 2,846,808
Nektar Therapeutics (a) 176,900 2,465,986
Neurochem, Inc. (a) 120,100 1,430,391
Noven Pharmaceuticals, Inc. (a) 151,500 2,569,440
Renovis, Inc. (a) 214,400 1,730,208
Salix Pharmaceuticals Ltd. (a) 164,100 2,706,009
Taro Pharmaceuticals
Industries Ltd. (a) 78,600 2,480,616
-------------
Pharmaceuticals Total 23,585,861
-------------
HEALTH CARE TOTAL 67,951,018
INDUSTRIALS - 12.8%
AEROSPACE & DEFENSE - 1.5%
DRS Technologies, Inc. (a) 129,700 5,512,250
-------------
Aerospace & Defense Total 5,512,250
AIR FREIGHT & LOGISTICS - 1.8%
EGL, Inc. (a) 134,000 3,055,200
UTI Worldwide, Inc. 49,100 3,409,995
-------------
Air Freight & Logistics Total 6,465,195
COMMERCIAL SERVICES & SUPPLIES - 4.6%
Corporate Executive Board Co. 55,100 3,523,645
Educate, Inc. (a) 132,500 1,837,775
Intersections, Inc. (a) 78,400 1,140,720
SHARES VALUE ($)
- ----------------------------------------------------------------------
Laureate Education, Inc. (a) 76,500 3,273,435
MDC Partners, Inc., Class A (a) 217,881 2,072,048
Navigant Consulting, Inc. (a) 130,100 3,542,623
NCO Group, Inc. (a) 72,391 1,415,244
-------------
Commercial Services & Supplies Total 16,805,490
ELECTRICAL EQUIPMENT - 1.1%
Acuity Brands, Inc. 68,200 1,841,400
Plug Power, Inc. (a) 320,000 2,112,000
-------------
Electrical Equipment Total 3,953,400
MACHINERY - 1.7%
Cuno, Inc. (a) 51,875 2,665,856
RAE Systems, Inc. (a) 176,000 540,320
Wabash National Corp. 124,900 3,047,560
-------------
Machinery Total 6,253,736
ROAD & RAIL - 1.6%
Genesee & Wyoming, Inc., Class A (a) 74,950 1,941,955
Heartland Express, Inc. 157,000 3,006,550
Sirva, Inc. (a) 122,000 867,420
-------------
Road & Rail Total 5,815,925
TRADING COMPANIES & DISTRIBUTORS - 0.5%
Aceto Corp. 214,500 1,591,590
-------------
Trading Companies & Distributors Total 1,591,590
-------------
INDUSTRIALS TOTAL 46,397,586
INFORMATION TECHNOLOGY - 24.9%
COMMUNICATIONS EQUIPMENT - 2.9%
Audiovox Corp., Class A (a) 87,400 1,113,476
Finisar Corp. (a) 773,000 966,250
Foundry Networks, Inc. (a) 252,000 2,494,800
Inter-Tel, Inc. 99,200 2,430,400
NICE Systems Ltd., ADR (a) 65,300 2,103,966
NMS Communications Corp. (a) 306,100 1,313,169
-------------
Communications Equipment Total 10,422,061
COMPUTERS & PERIPHERALS - 1.9%
Applied Films Corp. (a) 80,300 1,856,536
PalmSource, Inc. (a) 166,900 1,508,776
Pinnacle Systems, Inc. (a) 361,200 2,019,108
SimpleTech, Inc. (a) 354,000 1,394,760
-------------
Computers & Peripherals Total 6,779,180
ELECTRONIC EQUIPMENT & INSTRUMENTS - 2.5%
Anixter International, Inc. (a) 62,600 2,262,990
Dolby Laboratories, Inc., Class A (a) 32,000 752,000
Global Imaging Systems, Inc. (a) 66,800 2,368,728
Itron, Inc. (a) 62,000 1,837,680
Photon Dynamics, Inc. (a) 92,900 1,770,674
-------------
Electronic Equipment & Instruments Total 8,992,072
INTERNET SOFTWARE & SERVICES - 3.4%
Corillian Corp. (a) 640,300 2,228,244
Digital River, Inc. (a) 78,400 2,442,944
Digitas, Inc. (a) 395,000 3,989,500
See Accompanying Notes to Financial Statements. | 61
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA SMALL COMPANY EQUITY FUND
SHARES VALUE ($)
- ----------------------------------------------------------------------
COMMON STOCKS - (CONTINUED)
INFORMATION TECHNOLOGY - (CONTINUED)
INTERNET SOFTWARE & SERVICES - (CONTINUED)
Equinix, Inc. (a) 68,700 2,908,758
TeleCommunication Systems,
Inc., Class A (a) 366,700 979,089
-------------
Internet Software & Services Total 12,548,535
IT SERVICES - 0.7%
MAXIMUS, Inc. 81,500 2,729,435
-------------
IT Services Total 2,729,435
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 8.1%
Brooks Automation, Inc. (a) 199,400 3,026,892
Cypress Semiconductor Corp. (a) 232,100 2,924,460
DSP Group, Inc. (a) 87,100 2,243,696
Entegris, Inc. (a) 273,300 2,702,937
FEI Co. (a) 138,000 3,194,700
Integrated Circuit Systems, Inc. (a) 78,900 1,508,568
IXYS Corp. (a) 261,800 2,994,992
Leadis Technology, Inc. (a) 111,800 668,564
Mykrolis Corp. (a) 181,700 2,598,310
Silicon Image, Inc. (a) 180,300 1,813,818
Silicon Storage Technology, Inc. (a) 347,300 1,291,956
Ultratech, Inc. (a) 189,200 2,762,320
Zoran Corp. (a) 148,400 1,535,940
-------------
Semiconductors & Semiconductor Equipment Total 29,267,153
SOFTWARE - 5.4%
Captiva Software Corp. (a) 198,322 2,147,827
Epicor Software Corp. (a) 212,300 2,781,130
FileNET Corp. (a) 90,800 2,068,424
Magma Design Automation, Inc. (a) 197,600 2,345,512
Manhattan Associates, Inc. (a) 146,100 2,976,057
Micromuse, Inc. (a) 455,500 2,063,415
OpenTV Corp., Class A (a) 412,000 1,170,080
ScanSoft, Inc. (a) 269,600 1,002,912
SeaChange International, Inc. (a) 145,300 1,881,635
Verity, Inc. (a) 143,600 1,357,020
-------------
Software Total 19,794,012
-------------
INFORMATION TECHNOLOGY TOTAL 90,532,448
MATERIALS - 1.6%
CHEMICALS - 1.2%
Landec Corp. (a) 254,500 1,852,760
UAP Holding Corp. (a) 153,500 2,471,350
-------------
Chemicals Total 4,324,110
METALS & MINING - 0.4%
AMCOL International Corp. 69,100 1,296,316
-------------
Metals & Mining Total 1,296,316
-------------
MATERIALS TOTAL 5,620,426
Total Common Stocks
(cost of $295,478,672) 322,242,417
SHARES VALUE ($)
- ----------------------------------------------------------------------
INVESTMENT COMPANIES - 8.4%
iShares Russell 2000 Growth
Index Fund 275,000 17,209,500
iShares Russell 2000 Index Fund 107,920 13,182,428
-------------
Total Investment Companies
(cost of $31,057,331) 30,391,928
PAR ($)
- ----------------------------------------------------------------------
SHORT-TERM OBLIGATION - 1.9%
Repurchase agreement with State Street
Bank & Trust Co., dated 03/31/05, due
04/01/05 at 2.450%, collateralized by a
U.S. Treasury Bond maturing 08/15/22,
market value of $7,201,600 (repurchase
proceeds $7,059,480) 7,059,000 7,059,000
-------------
Total Short-Term Obligation
(cost of $7,059,000) 7,059,000
TOTAL INVESTMENTS - 99.1%
(COST OF $333,595,003) (b) 359,693,345
OTHER ASSETS & LIABILITIES, NET - 0.9% 3,206,414
NET ASSETS - 100.0% 362,899,759
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing security.
(b) Cost for federal income tax purposes is $333,595,003.
At March 31, 2005, the Fund held investments in the following sectors:
% OF
SECTOR NET ASSETS
------ ----------
Information Technology 24.9%
Health Care 18.7
Consumer Discretionary 15.1
Industrials 12.8
Financials 9.5
Energy 6.2
Materials 1.6
Investment Companies 8.4
Short-Term Obligation 1.9
Other Assets & Liabilities, Net 0.9
----------
100.0%
==========
ACRONYM NAME
------- ----
ADR American Depositary Receipt
62 | See Accompanying Notes to Financial Statements.
STATEMENTS OF ASSETS AND LIABILITIES ___________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA EQUITY FUNDS
COLUMBIA
COLUMBIA COLUMBIA COLUMBIA COLUMBIA COLUMBIA SMALL
ASSET LARGE CAP DISCIPLINED LARGE CAP SMALL COMPANY
ALLOCATION GROWTH VALUE CORE CAP EQUITY
FUND ($) FUND ($) FUND ($) FUND ($) FUND ($) FUND ($)
----------- ------------- ----------- ----------- ------------- -----------
ASSETS
Unaffiliated investments, at identified cost 367,737,321 1,360,375,153 395,926,409 502,602,124 1,280,909,528 333,595,003
Affiliated investments, at identified cost -- -- -- -- 20,827,334 --
----------- ------------- ----------- ----------- ------------- -----------
Total investments, at identified cost 367,737,321 1,360,375,153 395,926,409 502,602,124 1,301,736,862 333,595,003
----------- ------------- ----------- ----------- ------------- -----------
Unaffiliated investments, at value 407,947,071 1,590,193,994 438,845,311 557,041,517 1,546,900,718 359,693,345
Affiliated investments, at value -- -- -- -- 20,983,804 --
----------- ------------- ----------- ----------- ------------- -----------
Total investments, at value 407,947,071 1,590,193,994 438,845,311 557,041,517 1,567,884,522 359,693,345
----------- ------------- ----------- ----------- ------------- -----------
Cash 33,247 170 834 611 20,351 56
Foreign currency (cost of $13,618) 13,515 -- -- -- -- --
Receivable for:
Investments sold 12,868,336 21,295,100 -- 45,590,392 43,261,584 10,521,358
Fund shares sold 101,953 1,187,832 206,831 110,461 1,036,636 517,361
Interest 1,156,779 239 201 159 3,582 480
Dividends 445,048 1,917,541 851,127 641,853 821,025 155,661
Foreign tax reclaim 15,464 -- -- -- 2,680 33
Expense reimbursement due from Investment
Advisor -- -- -- 32,944 -- --
Deferred compensation plan 28,458 69,150 23,389 30,249 30,066 20,939
Other assets -- 410,075 -- 151,387 -- --
----------- ------------- ----------- ----------- ------------- -----------
Total assets 422,609,871 1,615,074,101 439,927,693 603,599,573 1,613,060,446 370,909,233
----------- ------------- ----------- ----------- ------------- -----------
LIABILITIES
Payable for:
Investments purchased on a delayed
delivery basis 5,025,781 -- -- -- -- --
Investments purchased 11,613,132 22,407,776 -- 34,395,465 1,965,351 6,791,746
Fund shares repurchased 1,521,554 4,896,831 386,953 4,119,983 4,559,624 727,748
Investment advisory fee 229,788 577,747 261,608 264,904 968,737 236,050
Administration fee 23,784 56,924 25,064 27,140 91,666 21,087
Transfer agent fee 207,695 416,993 131,577 156,965 239,969 153,329
Pricing and bookkeeping fees 6,736 8,824 3,576 5,781 10,037 3,867
Expenses received at merger -- 493,873 -- 317,271 -- --
Trustees' fees -- 184 -- 666 -- --
Distribution and service fees 81,132 104,372 44,598 63,834 187,414 24,747
Custody fee 10,115 3,997 2,409 3,425 5,536 2,166
Deferred compensation plan 28,458 69,150 23,389 30,249 30,066 20,939
Other liabilities 48,148 92,980 34,243 52,012 13,219 27,795
----------- ------------- ----------- ----------- ------------- -----------
Total liabilities 18,796,323 29,129,651 913,417 39,437,695 8,071,619 8,009,474
NET ASSETS 403,813,548 1,585,944,450 439,014,276 564,161,878 1,604,988,827 362,899,759
----------- ------------- ----------- ----------- ------------- -----------
NET ASSETS CONSIST OF
Paid-in capital 354,265,105 1,462,592,744 390,228,203 503,672,845 1,288,122,848 343,693,791
Undistributed (overdistributed) net
investment income (628,459) 2,439,169 427,535 237,288 -- --
Accumulated net investment loss -- -- -- -- (2,051,646) (1,808,608)
Accumulated net realized gain (loss) 9,967,856 (108,906,304) 5,439,636 5,812,352 52,769,965 (5,083,766)
Unrealized appreciation (depreciation) on:
Investments 40,209,750 229,818,841 42,918,902 54,439,393 266,147,660 26,098,342
Foreign currency translations (704) -- -- -- -- --
----------- ------------- ----------- ----------- ------------- -----------
NET ASSETS 403,813,548 1,585,944,450 439,014,276 564,161,878 1,604,988,827 362,899,759
See Accompanying Notes to Financial Statements. | 63
STATEMENTS OF ASSETS AND LIABILITIES ___________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA EQUITY FUNDS
COLUMBIA
COLUMBIA COLUMBIA COLUMBIA COLUMBIA COLUMBIA SMALL
ASSET LARGE CAP DISCIPLINED LARGE CAP SMALL COMPANY
ALLOCATION GROWTH VALUE CORE CAP EQUITY
FUND ($) FUND ($) FUND ($) FUND ($) FUND ($) FUND ($)
----------- ------------- ----------- ----------- ------------- -----------
CLASS A
Net assets 3,462,493 9,732,062 3,463,911 9,573,735 212,088,255 5,040,405
Shares outstanding 218,919 488,627 251,792 772,042 11,694,967 302,060
Net asset value per share (a) 15.82 19.92 13.76 12.40 18.14 16.69
Maximum sales charge 5.75% 5.75% 5.75% 5.75% 5.75% 5.75%
Maximum offering price per share (b) 16.79 21.14 14.60 13.16 19.25 17.71
----------- ------------- ----------- ----------- ------------- -----------
CLASS B
Net assets 6,146,453 7,023,950 3,424,125 6,031,786 42,241,720 2,111,451
Shares outstanding 388,681 369,645 260,249 501,755 2,416,676 136,048
Net asset value and offering price per
share (a) 15.81 19.00 13.16 12.02 17.48 15.52
----------- ------------- ----------- ----------- ------------- -----------
CLASS C
Net assets 560,158 1,217,311 450,550 516,985 65,001,890 1,020,145
Shares outstanding 35,413 63,971 34,300 42,982 3,715,451 65,926
Net asset value and offering price per
share (a) 15.82 19.03 13.14 12.03 17.50 15.47
----------- ------------- ----------- ----------- ------------- -----------
CLASS G
Net assets 31,155,364 55,433,551 6,294,674 13,090,081 10,951,710 4,015,437
Shares outstanding 1,970,376 3,010,678 478,215 1,099,201 632,132 259,288
Net asset value and offering price per
share (a) 15.81 18.41 13.16 11.91 17.33 15.49
----------- ------------- ----------- ----------- ------------- -----------
CLASS T
Net assets 184,599,284 219,061,138 135,958,756 176,004,280 150,866,322 67,236,755
Shares outstanding 11,665,040 11,065,624 9,882,935 14,264,730 8,392,845 4,036,945
Net asset value per share (a) 15.83 19.80 13.76 12.34 17.98 16.66
Maximum sales charge 5.75% 5.75% 5.75% 5.75% 5.75% 5.75%
Maximum offering price per share (b) 16.80 21.01 14.60 13.09 19.08 17.68
----------- ------------- ----------- ----------- ------------- -----------
CLASS Z
Net assets 177,889,796 1,293,476,438 289,422,260 358,945,011 1,123,838,930 283,475,566
Shares outstanding 11,249,405 63,856,935 20,655,503 28,829,821 61,361,639 16,066,925
Net asset value, offering and redemption
price per share 15.81 20.26 14.01 12.45 18.32 17.64
(a) Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
(b) On sales of $50,000 or more the offering price is reduced.
64 | See Accompanying Notes to Financial Statements.
STATEMENTS OF OPERATIONS _______________________________________________________
FOR THE SIX MONTHS ENDED MARCH 31, 2005 (UNAUDITED) COLUMBIA EQUITY FUNDS
COLUMBIA
COLUMBIA COLUMBIA COLUMBIA COLUMBIA COLUMBIA SMALL
ASSET LARGE CAP DISCIPLINED LARGE CAP SMALL COMPANY
ALLOCATION GROWTH VALUE CORE CAP EQUITY
FUND ($) FUND ($) FUND ($) FUND ($) FUND ($) FUND ($)
----------- ----------- ----------- ----------- ----------- -----------
NET INVESTMENT INCOME
INCOME
Dividends 2,823,395 9,311,769 6,454,409 4,939,596 5,389,413 441,180
Interest 3,684,848 162,190 23,354 17,550 948,319 42,406
Foreign withholding tax (41,130) (118,362) -- (21,304) (21,159) (487)
----------- ----------- ----------- ----------- ----------- -----------
Total income 6,467,113 9,355,597 6,477,763 4,935,842 6,316,573 483,099
----------- ----------- ----------- ----------- ----------- -----------
EXPENSES
Investment advisory fee 1,404,441 3,242,787 1,565,388 1,391,337 5,684,511 1,467,610
Administration fee 141,071 317,099 148,093 132,460 551,250 131,106
Distribution fee:
Class B 20,693 15,463 11,239 14,409 158,491 7,863
Class C 2,039 3,289 1,333 1,439 252,345 4,067
Class G 119,873 154,672 23,368 49,283 36,995 14,446
Service fee:
Class A 4,103 6,023 3,614 11,463 276,393 6,447
Class B 6,898 5,154 3,739 4,803 52,830 2,621
Class C 680 1,096 444 480 84,115 1,356
Class G 55,326 71,388 10,785 22,746 17,074 6,668
Shareholder service fee-Class T 280,355 337,540 204,699 271,305 228,875 106,229
Transfer agent fee 505,195 1,054,698 366,843 477,741 704,167 400,381
Pricing and bookkeeping fees 74,759 48,414 28,341 30,769 67,443 29,014
Trustees' fees 7,597 14,003 7,374 8,458 15,424 6,698
Custody fee 105,558 17,070 10,543 13,686 27,929 8,828
Merger costs -- 63,949 -- 63,913 -- --
Non-recurring costs (See Note 7) 4,751 11,375 5,055 4,524 18,839 4,418
Other expenses 131,936 208,811 110,112 136,581 201,127 105,902
----------- ----------- ----------- ----------- ----------- -----------
Total expenses 2,865,275 5,572,831 2,500,970 2,635,397 8,377,808 2,303,654
Expenses waived or reimbursed by Investment
Advisor -- -- -- (32,944) -- --
Fees waived by Transfer Agent -- -- -- (8,976) -- (18,132)
Custody earnings credit -- (56) (2,728) -- (2,759) (903)
Non-recurring costs assumed by
Investment Advisor (See Note 7) (4,751) (11,375) (5,055) (4,524) (18,839) (4,418)
----------- ----------- ----------- ----------- ----------- -----------
Net expenses 2,860,524 5,561,400 2,493,187 2,588,953 8,356,210 2,280,201
----------- ----------- ----------- ----------- ----------- -----------
Net Investment Income (Loss) 3,606,589 3,794,197 3,984,576 2,346,889 (2,039,637) (1,797,102)
----------- ----------- ----------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS, FOREIGN CURRENCY AND
FOREIGN CAPITAL GAINS TAX
Net realized gain (loss) on:
Unaffiliated investments 20,964,305 32,369,414 16,816,233 7,092,416 58,807,368 32,667,504
Affiliated investments -- -- -- -- 63,699 --
Foreign currency transactions (46,153) -- -- -- -- --
Foreign capital gains tax (31,533) -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
Net realized gain 20,886,619 32,369,414 16,816,233 7,092,416 58,871,067 32,667,504
----------- ----------- ----------- ----------- ----------- -----------
Net change in unrealized appreciation
(depreciation) on:
Investments 372,354 31,383,693 17,560,646 14,444,253 93,493,254 (11,923,559)
Foreign currency translations (121) -- -- -- -- --
Foreign capital gains tax 28,954 -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
Net change in unrealized appreciation
(depreciation) 401,187 31,383,693 17,560,646 14,444,253 93,493,254 (11,923,559)
----------- ----------- ----------- ----------- ----------- -----------
Net Gain 21,287,806 63,753,107 34,376,879 21,536,669 152,364,321 20,743,945
----------- ----------- ----------- ----------- ----------- -----------
Net Increase Resulting from Operations 24,894,395 67,547,304 38,361,455 23,883,558 150,324,684 18,946,843
See Accompanying Notes to Financial Statements. | 65
STATEMENTS OF CHANGES IN NET ASSETS ____________________________________________
COLUMBIA EQUITY FUNDS
COLUMBIA ASSET ALLOCATION FUND COLUMBIA LARGE CAP GROWTH FUND
------------------------------ ------------------------------
(UNAUDITED) (UNAUDITED)
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
MARCH 31, SEPTEMBER 30, MARCH 31, SEPTEMBER 30,
INCREASE (DECREASE) IN NET ASSETS 2005 ($) 2004 ($) 2005 ($) 2004 ($)
------------- ------------- ------------- -------------
OPERATIONS
Net investment income (loss) 3,606,589 6,588,100 3,794,197 (2,858,299)
Net realized gain on investments, foreign currency
transactions and foreign capital gains tax 20,886,619 29,766,534 32,369,414 35,926,964
Net change in unrealized appreciation (depreciation)
on investments, foreign currency
translations and foreign capital gains tax 401,187 6,931,847 31,383,693 24,493,437
------------- ------------- ------------- -------------
Net increase resulting from operations 24,894,395 43,286,481 67,547,304 57,562,102
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income:
Class A (29,118) (38,123) (4,773) --
Class B (28,099) (39,489) -- --
Class C (2,777) (3,850) -- --
Class G (186,160) (532,662) -- --
Class T (1,571,020) (3,361,232) (218,026) --
Class Z (1,840,184) (4,367,911) (1,100,339) (344,225)
------------- ------------- ------------- -------------
Total distributions to shareholders (3,657,358) (8,343,267) (1,323,138) (344,225)
------------- ------------- ------------- -------------
NET CAPITAL SHARE TRANSACTIONS (40,650,911) (79,551,611) 611,711,402 (113,980,519)
Net increase (decrease) in net assets (19,413,874) (44,608,397) 677,935,568 (56,762,642)
------------- ------------- ------------- -------------
NET ASSETS
Beginning of period 423,227,422 467,835,819 908,008,882 964,771,524
End of period 403,813,548 423,227,422 1,585,944,450 908,008,882
------------- ------------- ------------- -------------
Undistributed (overdistributed) net investment income
at end of period (628,460) (577,690) 2,439,169 --
Accumulated net investment loss at end of period -- -- -- (31,890)
COLUMBIA DISCIPLINED VALUE FUND
-------------------------------
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED
MARCH 31, SEPTEMBER 30,
INCREASE (DECREASE) IN NET ASSETS 2005 ($) 2004 ($)
------------- -------------
OPERATIONS
Net investment income (loss) 3,984,576 6,193,345
Net realized gain on investments, foreign currency
transactions and foreign capital gains tax 16,816,233 56,049,664
Net change in unrealized appreciation (depreciation)
on investments, foreign currency
translations and foreign capital gains tax 17,560,646 2,235,576
------------- -------------
Net increase resulting from operations 38,361,455 64,478,585
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS From net investment income:
Class A (22,388) (34,019)
Class B (11,502) (10,336)
Class C (1,381) (1,620)
Class G (30,157) (60,722)
Class T (981,350) (2,222,608)
Class Z (2,497,216) (5,958,609)
------------- -------------
Total distributions to shareholders (3,543,994) (8,287,914)
------------- -------------
NET CAPITAL SHARE TRANSACTIONS (25,040,723) 8,578,064
Net increase (decrease) in net assets 9,776,738 64,768,735
------------- -------------
NET ASSETS
Beginning of period 429,237,538 364,468,803
End of period 439,014,276 429,237,538
------------- -------------
Undistributed (overdistributed) net investment income
at end of period 427,535 (13,047)
Accumulated net investment loss at end of period -- --
66 - 67 Spread | See Accompanying Notes to Financial Statements.
STATEMENTS OF CHANGES IN NET ASSETS ____________________________________________
COLUMBIA EQUITY FUNDS
COLUMBIA LARGE CAP CORE FUND COLUMBIA SMALL CAP FUND
------------------------------ ------------------------------
(UNAUDITED) (UNAUDITED)
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
MARCH 31, SEPTEMBER 30, MARCH 31, SEPTEMBER 30,
INCREASE (DECREASE) IN NET ASSETS 2005 ($) 2004 ($) 2005 ($) 2004 ($)
------------- ------------- ------------- -------------
OPERATIONS
Net investment income (loss) 2,346,889 137,755 (2,039,637) (3,982,558)
Net realized gain on investments 7,092,416 31,566,846 58,871,067 101,709,890
Net change in unrealized appreciation (depreciation)
on investments 14,444,253 (1,396,341) 93,493,254 100,021,971
------------- ------------- ------------- -------------
Net increase resulting from operations 23,883,558 30,308,260 150,324,684 197,749,303
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS From net investment income:
Class A (48,639) (3,718) -- --
Class B (12,842) -- -- --
Class C (1,388) -- -- --
Class G (58,216) -- -- --
Class T (943,447) (53,896) -- --
Class Z (1,028,431) (307,876) --
From net realized gains:
Class A (258,532) -- (12,733,628) (2,842,592)
Class B (104,749) -- (2,238,234) (388,822)
Class C (11,323) -- (3,566,050) (673,375)
Class G (458,781) -- (614,205) (236,658)
Class T (5,128,778) -- (8,769,533) (3,762,956)
Class Z (4,890,149) -- (68,581,878) (26,575,680)
------------- ------------- ------------- -------------
Total distributions to shareholders (12,945,275) (365,490) (96,503,528) (34,480,083)
------------- ------------- ------------- -------------
NET CAPITAL SHARE TRANSACTIONS 169,296,477 (60,613,547) (24,206,036) 396,376,350
Net increase (decrease) in net assets 180,234,760 (30,670,777) 29,615,120 559,645,570
------------- ------------- ------------- -------------
NET ASSETS
Beginning of period 383,927,118 414,597,895 1,575,373,707 1,015,728,137
End of period 564,161,878 383,927,118 1,604,988,827 1,575,373,707
------------- ------------- ------------- -------------
Undistributed (overdistributed) net investment income
at end of period 237,288 (16,638) -- --
Accumulated net investment loss at end of period -- -- (2,051,646) (12,009)
COLUMBIA SMALL
COMPANY EQUITY FUND
------------------------------
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED
MARCH 31, SEPTEMBER 30,
INCREASE (DECREASE) IN NET ASSETS 2005 ($) 2004 ($)
------------- -------------
OPERATIONS
Net investment income (loss) (1,797,102) (3,957,642)
Net realized gain on investments 32,667,504 63,906,432
Net change in unrealized appreciation (depreciation)
on investments (11,923,559) (10,180,101)
------------- -------------
Net increase resulting from operations 18,946,843 49,768,689
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS From net investment income:
Class A -- --
Class B -- --
Class C -- --
Class G -- --
Class T -- --
Class Z --
From net realized gains:
Class A -- --
Class B -- --
Class C -- --
Class G -- --
Class T -- --
Class Z -- --
------------- -------------
Total distributions to shareholders -- --
------------- -------------
NET CAPITAL SHARE TRANSACTIONS (36,473,820) (37,019,466)
Net increase (decrease) in net assets (17,526,977) 12,749,223
------------- -------------
NET ASSETS
Beginning of period 380,426,736 367,677,513
End of period 362,899,759 380,426,736
------------- -------------
Undistributed (overdistributed) net investment income
at end of period --
Accumulated net investment loss at end of period (1,808,608) (11,506)
68 - 69 Spread | See Accompanying Notes to Financial Statements.
STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY ___________________
COLUMBIA EQUITY FUNDS
COLUMBIA ASSET ALLOCATION FUND
----------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2005 SEPTEMBER 30, 2004
------------------------------ ------------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($)
------------- ------------- ------------- -------------
CLASS A
Subscriptions 64,945 1,025,815 156,246 2,338,730
Proceeds received in connection with merger -- -- -- --
Distributions reinvested 1,747 27,716 2,480 37,011
Redemptions (40,325) (640,372) (52,637) (794,225)
------------- ------------- ------------- -------------
Net increase 26,367 413,159 106,089 1,581,516
CLASS B
Subscriptions 91,015 1,444,971 187,791 2,806,475
Proceeds received in connection with merger -- -- -- --
Distributions reinvested 1,576 24,998 2,375 35,373
Redemptions (31,061) (493,014) (44,405) (665,807)
------------- ------------- ------------- -------------
Net increase 61,530 976,955 145,761 2,176,041
CLASS C
Subscriptions 7,572 120,542 26,605 398,392
Proceeds received in connection with merger -- -- -- --
Distributions reinvested 152 2,413 225 3,354
Redemptions (6,424) (102,163) (6,084) (90,769)
------------- ------------- ------------- -------------
Net increase 1,300 20,792 20,746 310,977
CLASS G
Subscriptions 15,940 251,183 46,210 691,443
Proceeds received in connection with merger -- -- -- --
Distributions reinvested 11,496 182,556 35,018 520,503
Redemptions (706,425) (11,205,208) (1,460,481) (21,741,477)
------------- ------------- ------------- -------------
Net increase (decrease) (678,989) (10,771,469) (1,379,253) (20,529,531)
CLASS T
Subscriptions 552,967 8,803,821 1,030,515 15,369,640
Distributions reinvested 95,689 1,518,775 218,543 3,254,741
Redemptions (1,156,683) (18,287,103) (2,605,902) (39,012,056)
------------- ------------- ------------- -------------
Net decrease (508,027) (7,964,507) (1,356,844) (20,387,675)
CLASS Z
Subscriptions 290,296 4,583,925 885,247 13,242,156
Proceeds received in connection with merger -- -- -- --
Distributions reinvested 95,476 1,513,958 240,806 3,584,314
Redemptions (1,857,237) (29,423,724) (3,966,326) (59,529,409)
------------- ------------- ------------- -------------
Net increase (decrease) (1,471,465) (23,325,841) (2,840,273) (42,702,939)
COLUMBIA LARGE CAP GROWTH FUND
----------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2005 SEPTEMBER 30, 2004
------------------------------ ------------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($)
------------- ------------- ------------- -------------
CLASS A
Subscriptions 76,938 1,543,484 185,141 3,529,297
Proceeds received in connection with merger 237,271 4,724,720 -- --
Distributions reinvested 228 4,636 -- --
Redemptions (34,046) (675,721) (84,167) (1,611,464)
------------- ------------- ------------- -------------
Net increase 280,391 5,597,119 100,974 1,917,833
CLASS B
Subscriptions 87,275 1,670,995 173,093 3,184,607
Proceeds received in connection with merger 117,001 2,223,353 -- --
Distributions reinvested -- -- -- --
Redemptions (14,509) (276,557) (52,933) (968,494)
------------- ------------- ------------- -------------
Net increase 189,767 3,617,791 120,160 2,216,113
CLASS C
Subscriptions 5,813 111,595 33,259 603,292
Proceeds received in connection with merger 16,591 315,731 -- --
Distributions reinvested -- -- -- --
Redemptions (2,290) (43,980) (20,280) (369,823)
------------- ------------- ------------- -------------
Net increase 20,114 383,346 12,979 233,469
CLASS G
Subscriptions 38,205 705,778 100,874 1,790,776
Proceeds received in connection with merger 701,867 12,922,808 -- --
Distributions reinvested -- -- -- --
Redemptions (421,507) (7,823,690) (748,063) (13,235,279)
------------- ------------- ------------- -------------
Net increase (decrease) 318,565 5,804,896 (647,189) (11,444,503)
CLASS T
Subscriptions 310,134 6,201,990 593,336 11,219,286
Distributions reinvested 10,490 212,534 -- --
Redemptions (1,125,378) (22,224,571) (2,197,901) (41,619,482)
------------- ------------- ------------- -------------
Net decrease (804,754) (15,810,047) (1,604,565) (30,400,196)
CLASS Z
Subscriptions 2,758,802 56,036,797 5,402,218 104,135,991
Proceeds received in connection with merger 33,471,430 677,813,754 -- --
Distributions reinvested 26,715 553,277 9,645 181,333
Redemptions (6,034,879) (122,285,531) (9,359,449) (180,820,559)
------------- ------------- ------------- -------------
Net increase (decrease) 30,222,068 612,118,297 (3,947,586) (76,503,235)
COLUMBIA DISCIPLINED VALUE FUND
----------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2005 SEPTEMBER 30, 2004
------------------------------ ------------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($)
------------- ------------- ------------- -------------
CLASS A
Subscriptions 69,106 945,161 136,953 1,686,613
Proceeds received in connection with merger -- -- -- --
Distributions reinvested 1,577 21,399 2,599 32,080
Redemptions (16,413) (223,495) (23,995) (300,932)
------------- ------------- ------------- -------------
Net increase 54,270 743,065 115,557 1,417,761
CLASS B
Subscriptions 83,694 1,077,128 179,802 2,124,921
Proceeds received in connection with merger -- -- -- --
Distributions reinvested 799 10,360 761 9,119
Redemptions (19,098) (246,304) (17,928) (213,057)
------------- ------------- ------------- -------------
Net increase 65,395 841,184 162,635 1,920,983
CLASS C
Subscriptions 11,970 158,046 40,005 458,582
Proceeds received in connection with merger -- -- -- --
Distributions reinvested 66 850 72 858
Redemptions (1,696) (22,408) (18,365) (206,697)
------------- ------------- ------------- -------------
Net increase 10,340 136,488 21,712 252,743
CLASS G
Subscriptions 5,350 68,945 17,943 210,409
Proceeds received in connection with merger -- -- -- --
Distributions reinvested 2,299 29,816 5,027 60,020
Redemptions (145,890) (1,897,102) (461,561) (5,407,849)
------------- ------------- ------------- -------------
Net increase (decrease) (138,241) (1,798,341) (438,591) (5,137,420)
CLASS T
Subscriptions 170,220 2,322,082 474,406 5,826,432
Distributions reinvested 70,879 961,342 176,846 2,178,280
Redemptions (824,723) (11,121,856) (1,818,952) (22,446,540)
------------- ------------- ------------- -------------
Net decrease (583,624) (7,838,432) (1,167,700) (14,441,828)
CLASS Z
Subscriptions 1,807,962 24,814,930 5,864,057 73,282,626
Proceeds received in connection with merger -- -- -- --
Distributions reinvested 58,792 812,205 165,325 2,065,049
Redemptions (3,101,493) (42,751,822) (4,080,140) (50,781,850)
------------- ------------- ------------- -------------
Net increase (decrease) (1,234,739) (17,124,687) 1,949,242 24,565,825
70 - 71 Spread | See Accompanying Notes to Financial Statements.
STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY ___________________
COLUMBIA EQUITY FUNDS
COLUMBIA LARGE CAP CORE FUND
----------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2005 SEPTEMBER 30, 2004
------------------------------ ------------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($)
------------- ------------- ------------- -------------
CLASS A
Subscriptions 34,746 432,943 223,985 2,723,272
Proceeds received in connection with merger 62,244 778,064 -- --
Distributions reinvested 23,431 291,719 298 3,571
Redemptions (123,108) (1,529,970) (124,083) (1,510,141)
------------- ------------- ------------- -------------
Net increase (decrease) (2,687) (27,244) 100,200 1,216,702
CLASS B
Subscriptions 63,743 774,246 191,409 2,257,015
Proceeds received in connection with merger 170,610 2,067,274 -- --
Distributions reinvested 9,019 109,136 -- --
Redemptions (34,906) (419,922) (57,832) (683,878)
------------- ------------- ------------- -------------
Net increase 208,466 2,530,734 133,577 1,573,137
CLASS C
Subscriptions 4,859 58,213 44,391 521,233
Proceeds received in connection with merger 13,831 167,732 -- --
Distributions reinvested 1,020 12,348 -- --
Redemptions (6,244) (75,466) (35,218) (416,189)
------------- ------------- ------------- -------------
Net increase (decrease) 13,466 162,827 9,173 105,044
CLASS G
Subscriptions 10,705 128,427 30,324 358,212
Distributions reinvested 42,570 509,989 -- --
Redemptions (373,468) (4,462,969) (1,265,623) (14,874,554)
------------- ------------- ------------- -------------
Net decrease (320,193) (3,824,553) (1,235,299) (14,516,342)
CLASS T
Subscriptions 308,194 3,816,616 1,137,554 13,775,855
Distributions reinvested 454,301 5,628,793 4,431 52,863
Redemptions (1,499,395) (18,557,556) (2,774,051) (33,648,875)
------------- ------------- ------------- -------------
Net decrease (736,900) (9,112,147) (1,632,066) (19,820,157)
CLASS Z
Subscriptions 827,749 10,307,325 2,978,947 36,327,362
Proceeds received in connection with merger 16,749,769 210,158,531 -- --
Distributions reinvested 276,781 3,459,761 7,263 87,150
Redemptions (3,556,693) (44,358,757) (5,362,164) (65,586,443)
------------- ------------- ------------- -------------
Net increase (decrease) 14,297,606 179,566,860 (2,375,954) (29,171,931)
COLUMBIA SMALL CAP FUND
----------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2005 SEPTEMBER 30, 2004
------------------------------ ------------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($)
------------- ------------- ------------- -------------
CLASS A
Subscriptions 748,121 13,646,113 9,975,214 170,177,084
Proceeds received in connection with merger -- -- -- --
Distributions reinvested 681,436 12,306,745 166,652 2,743,101
Redemptions (1,792,717) (32,651,421) (1,839,971) (31,780,743)
------------- ------------- ------------- -------------
Net increase (decrease) (363,160) (6,698,563) 8,301,895 141,139,442
CLASS B
Subscriptions 50,440 885,341 1,835,057 30,371,535
Proceeds received in connection with merger -- -- -- --
Distributions reinvested 118,979 2,074,993 22,302 355,492
Redemptions (130,695) (2,291,629) (233,273) (3,860,617)
------------- ------------- ------------- -------------
Net increase 38,724 668,705 1,624,086 26,866,410
CLASS C
Subscriptions 103,540 1,816,293 3,168,245 52,152,651
Proceeds received in connection with merger -- -- -- --
Distributions reinvested 179,878 3,140,707 37,782 603,008
Redemptions (394,082) (6,923,068) (237,693) (3,942,134)
------------- ------------- ------------- -------------
Net increase (decrease) (110,664) (1,966,068) 2,968,334 48,813,525
CLASS G
Subscriptions 5,972 105,062 15,992 262,179
Distributions reinvested 34,295 592,962 14,620 230,995
Redemptions (61,982) (1,083,226) (84,274) (1,387,033)
------------- ------------- ------------- -------------
Net decrease (21,715) (385,202) (53,662) (893,859)
CLASS T
Subscriptions 332,281 6,014,154 1,032,837 17,432,562
Distributions reinvested 439,303 7,867,925 221,143 3,611,276
Redemptions (813,884) (14,686,667) (1,687,801) (28,719,170)
------------- ------------- ------------- -------------
Net decrease (42,300) (804,588) (433,821) (7,675,332)
CLASS Z
Subscriptions 5,375,239 98,858,984 23,044,663 396,797,303
Proceeds received in connection with merger -- -- -- --
Distributions reinvested 2,299,186 41,891,167 1,091,817 18,124,145
Redemptions (8,443,089) (155,770,471) (13,111,013) (226,795,284)
------------- ------------- ------------- -------------
Net increase (decrease) (768,664) (15,020,320) 11,025,467 188,126,164
COLUMBIA SMALL COMPANY EQUITY FUND
----------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2005 SEPTEMBER 30, 2004
------------------------------ ------------------------------
SHARES DOLLARS ($) SHARES DOLLARS ($)
------------- ------------- ------------- -------------
CLASS A
Subscriptions 59,446 1,018,221 296,504 4,933,872
Proceeds received in connection with merger -- -- -- --
Distributions reinvested -- -- -- --
Redemptions (44,997) (768,012) (36,147) (662,030)
------------- ------------- ------------- -------------
Net increase (decrease) 14,449 250,209 260,357 4,271,842
CLASS B
Subscriptions 26,996 425,337 131,387 2,053,177
Proceeds received in connection with merger -- -- -- --
Distributions reinvested -- -- -- --
Redemptions (13,619) (216,371) (24,027) (359,925)
------------- ------------- ------------- -------------
Net increase 13,377 208,966 107,360 1,693,252
CLASS C
Subscriptions 8,484 134,706 69,159 1,059,859
Proceeds received in connection with merger -- -- -- --
Distributions reinvested -- -- -- --
Redemptions (8,739) (139,648) (7,231) (109,723)
------------- ------------- ------------- -------------
Net increase (decrease) (255) (4,942) 61,928 950,136
CLASS G
Subscriptions 2,501 39,617 7,992 121,923
Distributions reinvested -- -- -- --
Redemptions (50,530) (794,943) (203,048) (3,089,126)
------------- ------------- ------------- -------------
Net decrease (48,029) (755,326) (195,056) (2,967,203)
CLASS T
Subscriptions 62,239 1,057,879 219,277 3,570,127
Distributions reinvested -- -- -- --
Redemptions (318,431) (5,424,574) (666,822) (10,915,948)
------------- ------------- ------------- -------------
Net decrease (256,192) (4,366,695) (447,545) (7,345,821)
CLASS Z
Subscriptions 1,289,864 23,314,822 4,555,081 78,677,281
Proceeds received in connection with merger -- -- -- --
Distributions reinvested -- -- -- --
Redemptions (3,042,068) (55,120,854) (6,507,999) (112,298,953)
------------- ------------- ------------- -------------
Net increase (decrease) (1,752,204) (31,806,032) (1,952,918) (33,621,672)
72 - 73 Spread | See Accompanying Notes to Financial Statements.
NOTES TO FINANCIAL STATEMENTS __________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA EQUITY FUNDS
NOTE 1. ORGANIZATION
The Columbia Fund Trust XI (the "Trust") is a Massachusetts business trust
registered under the Investment Company Act of 1940, as amended, as an open-end
management investment company. Information presented in these financial
statements pertains to the following diversified portfolios (individually
referred to as a "Fund", collectively referred to as the "Funds"):
Columbia Asset Allocation Fund
Columbia Large Cap Growth Fund
Columbia Disciplined Value Fund
Columbia Large Cap Core Fund
Columbia Small Cap Fund
Columbia Small Company Equity Fund
INVESTMENT GOALS
The Columbia Asset Allocation Fund seeks a high total return by providing both a
current level of income greater than that provided by popular stock market
averages, as well as long-term growth in the value of the Fund's assets.
Columbia Large Cap Growth Fund and Columbia Small Cap Fund seek long term
capital appreciation. Columbia Disciplined Value Fund seeks long term capital
appreciation, with income as a secondary goal. Columbia Large Cap Core Fund
seeks to provide a relatively high total return through long-term capital
appreciation and current income. Columbia Small Company Equity Fund seeks
capital appreciation.
FUND SHARES
The Funds may issue an unlimited number of shares. Each Fund offers six classes
of shares: Class A, Class B, Class C, Class G, Class T and Class Z. Each share
class has its own sales charge and expense structure. The Columbia Small Cap
Fund is closed to new investors and new accounts.
Class A and Class T shares are subject to a front-end sales charge based on the
amount of initial investment. Class A and Class T shares purchased without an
initial sales charge in accounts aggregating $1 million to $25 million at the
time of purchase are subject to a 1.00% contingent deferred sales charge
("CDSC") on shares sold within eighteen months of the time of purchase. Class B
and Class G shares are subject to a maximum CDSC of 5.00% based upon the holding
period after purchase. Class B shares will convert to Class A shares in a
certain number of years after purchase, depending on the program under which
shares were purchased. Class G shares will convert to Class T shares in eight
years after purchase. Class C shares are subject to a 1.00% CDSC on shares sold
within one year after purchase. Class Z shares are offered continuously at net
asset value. There are certain restrictions on the purchase of Class Z shares,
as described in each Fund's prospectus.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
USE OF ESTIMATES
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America ("GAAP") requires management
to make estimates and assumptions that affect the reported amounts of assets and
liabilities, the disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenue and expenses during
the reporting period. Actual results could differ from those estimates. The
following is a summary of significant accounting policies consistently followed
by the Funds in the preparation of their financial statements.
SECURITY VALUATION
Equity securities and securities of certain investment companies are valued at
the last sale price on the principal exchange on which they trade, except for
securities traded on the NASDAQ, which are valued at the NASDAQ official close
price. Unlisted securities or listed securities for which there were no sales
during the day are valued at the closing bid price on such exchanges or
over-the-counter markets.
Debt securities generally are valued by pricing services approved by the Funds'
Board of Trustees, based upon market transactions for normal, institutional-size
trading units of similar securities. The services may use various pricing
techniques which take into account appropriate factors such as yield, quality,
coupon rate, maturity, type of issue, trading characteristics and other data, as
well as broker quotes. Debt securities for which quotations are readily
available are valued at an over-the-counter or exchange bid quotation. Certain
debt securities, which tend to be more thinly traded and of lesser quality, are
priced based on fundamental analysis of the financial condition of the issuer
and the estimated value of any collateral. Valuations developed through pricing
techniques may vary from the actual amounts realized upon sale of the
securities, and the potential variation may be greater for those securities
valued using fundamental analysis.
74
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA EQUITY FUNDS
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 Funds'
shares are determined as of such times. Foreign currency exchange rates are
generally determined at 2:00 p.m. Eastern (U.S.) time. Occasionally, events
affecting the values of such foreign securities and such exchange rates may
occur between the times at which they are determined and the close of the
customary trading session of the NYSE, which would not be reflected in the
computation of the Funds' net asset value. If events materially affecting the
values of such foreign securities occur and it is determined that market
quotations are not reliable, then these foreign securities will be valued at
their fair value using procedures approved by the Board of Trustees. The Funds
may use a systematic fair valuation model provided by an independent third party
to value securities principally traded in foreign markets in order to adjust for
possible stale pricing that may occur between the close of the foreign exchanges
and the time for valuation. If a security is valued at a "fair value", such
value is likely to be different from the last quoted market price for the
security.
Investments for which market quotations are not readily available, or quotations
which management believes are not appropriate, are valued at fair value under
procedures approved by the Board of Trustees.
SECURITY TRANSACTIONS
Security transactions are accounted for on the trade date. Cost is determined
and gains (losses) are based upon the specific identification method for both
financial statement and federal income tax purposes.
REPURCHASE AGREEMENTS
Each Fund may engage in repurchase agreement transactions with institutions that
the Funds' investment advisor has determined are creditworthy. Each Fund,
through its custodian, receives delivery of underlying securities
collateralizing a repurchase agreement. Collateral is at least equal, at all
times, to the value of the repurchase obligation including interest. A
repurchase agreement transaction involves certain risks in the event of default
or insolvency of the counterparty. These risks include possible delays or
restrictions upon each Fund's ability to dispose of the underlying securities
and a possible decline in the value of the underlying securities during the
period while the Funds seek to assert their rights.
DELAYED DELIVERY
Certain Funds may trade securities on other than normal settlement terms,
including securities purchased or sold on a "when-issued" basis. This may
increase the risk if the other party to the transaction fails to deliver and
causes the Funds to subsequently invest at less advantageous prices. The Funds
identify cash or liquid portfolio securities in an amount equal to the delayed
delivery commitment.
INCOME RECOGNITION
Interest income is recorded on the accrual basis. Premium and discount are
amortized and accreted, respectively, on all debt securities. Corporate actions
and dividend income are recorded on the ex-date, except for certain foreign
securities which are recorded as soon after ex-date as the Funds become aware of
such, net of non-reclaimable tax withholdings. Awards from class action
litigation are recorded as a reduction of cost if the Funds still own the
applicable securities on the payment date. If the Funds no longer own the
applicable securities, the proceeds are recorded as realized gains.
The Funds estimate components of distributions from real estate investment
trusts (REITs). Distributions received in excess of income are recorded as a
reduction of the cost of the related investments. If the Funds no longer own the
applicable securities, any distributions received in excess of income are
recorded as realized gains.
FOREIGN CURRENCY TRANSACTIONS
The values of all assets and liabilities quoted in foreign currencies are
translated into U.S. dollars at that day's exchange rates. Net realized and
unrealized gains (losses) on foreign currency transactions include gains
(losses) arising from the fluctuation in
75
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA EQUITY FUNDS
exchange rates between trade and settlement dates on securities transactions,
gains (losses) arising from the disposition of foreign currency and currency
gains (losses) between the accrual and payment dates on dividends, interest
income and foreign withholding taxes.
For financial statement purposes, the Funds do not distinguish that portion of
gains (losses) on investments which is due to changes in foreign exchange rates
from that which is due to changes in market prices of the investments. Such
fluctuations are included with the net realized and unrealized gains (losses) on
investments.
DETERMINATION OF CLASS NET ASSET VALUES
All income, expenses (other than class-specific expenses, as shown on the
Statements of Operations) and realized and unrealized gains (losses), are
allocated to each class of a Fund on a daily basis, based on the relative net
assets of each class, for purposes of determining the net asset value of each
class.
FEDERAL INCOME TAX STATUS
Each Fund intends to qualify each year as a "regulated investment company" under
Subchapter M of the Internal Revenue Code, as amended, and will distribute
substantially all of its taxable income, if any, for its tax year, and as such
will not be subject to federal income taxes. In addition, each Fund intends to
distribute in each calendar year substantially all of its net investment income,
capital gains and certain other amounts, if any, such that each Fund should not
be subject to federal excise tax. Therefore, no federal income or excise tax
provision is recorded.
FOREIGN CAPITAL GAINS TAXES
Realized gains in certain countries may be subject to foreign taxes at the fund
level, at rates ranging from approximately 10% to 15%. The Funds accrue for such
foreign taxes on net realized and unrealized gains at the appropriate rate for
each jurisdiction.
DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income are declared and paid quarterly for each
Fund. Effective October 13, 2004, the Board of Trustees approved a change in the
distribution policy for the Columbia Large Cap Growth Fund, Columbia Large Cap
Core Fund, Columbia Small Cap Fund and Columbia Small Company Equity Fund, so
that these Funds will distribute any dividends annually. Net realized capital
gains, if any, are distributed at least annually for all Funds.
NOTE 3. FEDERAL TAX INFORMATION
The tax character of distributions paid during the year ended September 30, 2004
was as follows:
ORDINARY LONG-TERM
INCOME* CAPITAL GAINS
---------------------------
Columbia Asset Allocation Fund ................... $ 8,343,267 $ --
Columbia Large Cap Growth Fund ................... 344,225 --
Columbia Disciplined Value Fund .................. 8,287,914 --
Columbia Large Cap Core Fund ..................... 347,473 18,017
Columbia Small Cap Fund .......................... 9,268,588 25,211,495
*For tax purposes short-term capital gains distributions, if any, are considered
ordinary income distributions.
Unrealized appreciation and depreciation at March 31, 2005, based on cost of
investments for federal income tax purposes, excluding any unrealized
appreciation and depreciation from changes in the value of other assets and
liabilities resulting from changes in exchange rates, was:
UNREALIZED UNREALIZED NET UNREALIZED
APPRECIATION DEPRECIATION APPRECIATION
------------------------------------------
Columbia Asset Allocation Fund ................... $ 49,398,872 $ (9,651,474) $ 39,747,398
Columbia Large Cap Growth Fund ................... 260,369,098 (30,550,257) 229,818,841
Columbia Disciplined Value Fund .................. 55,410,021 (12,491,119) 42,918,902
Columbia Large Cap Core Fund ..................... 65,545,154 (11,105,761) 54,439,393
Columbia Small Cap Fund .......................... 386,422,170 (120,274,510) 266,147,660
Columbia Small Company Equity Fund ............... 68,808,712 (42,710,370) 26,098,342
76
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA EQUITY FUNDS
The following capital loss carryforwards, determined as of September 30, 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:
COLUMBIA COLUMBIA COLUMBIA COLUMBIA
ASSET LARGE CAP DISCIPLINED SMALL COMPANY
ALLOCATION GROWTH VALUE EQUITY
YEAR OF EXPIRATION FUND* FUND FUND FUND
---------- ------------ ----------- -------------
2009 ............................................. $ -- $ 8,273,159 $ -- $ --
2010 ............................................. 1,108,836 99,339,708 10,720,416 36,913,639
2011 ............................................. 5,941,365 22,217,091 -- --
---------- ------------ ----------- -------------
Total ............................................ $7,050,201 $129,829,958 $10,720,416 $ 36,913,639
---------- ------------ ----------- -------------
* Of the capital loss carryforwards attributable to Columbia Asset
Allocation Fund, $1,108,636 expiring September 30, 2010 remain from the
Columbia Asset Allocation Fund's merger with Stein Roe Balanced Fund.
NOTE 4. FEES AND COMPENSATION PAID TO AFFILIATES
INVESTMENT ADVISORY FEE
Columbia Management Advisors, Inc. ("Columbia"), an indirect wholly owned
subsidiary of Bank of America Corporation ("BOA"), is the investment advisor to
the Funds and receives a monthly investment advisory fee based on the average
daily net assets from each of the Funds at the following annual rates:
FEES ON
FEES ON AVERAGE FEES ON FEES ON FEES ON FEES ON FEES ON
AVERAGE NET ASSETS AVERAGE AVERAGE AVERAGE AVERAGE AVERAGE FEES ON
NET ASSETS $200 NET ASSETS NET ASSETS NET ASSETS NET ASSETS NET ASSETS AVERAGE
FIRST MILLION $500 $1 BILLION $1.5 BILLION $2 BILLION $3 BILLION NET ASSETS
$200 TO $500 MILLION TO TO $1.5 TO $2 TO $3 TO $6 OVER $6
MILLION MILLION $1 BILLION BILLION BILLION BILLION BILLION BILLION
---------- ---------- ----------- ---------- ------------ ---------- ---------- ----------
Columbia Asset
Allocation Fund ........... 0.650% 0.650% 0.600% 0.550% 0.500% 0.500% 0.480% 0.460%
Columbia Large Cap
Growth Fund ............... 0.700% 0.575% 0.450% 0.450% 0.450% 0.450% 0.450% 0.450%
Columbia Disciplined
Value Fund ................ 0.700% 0.700% 0.650% 0.600% 0.550% 0.550% 0.530% 0.510%
Columbia Large Cap
Core Fund ................. 0.700% 0.700% 0.650% 0.600% 0.550% 0.550% 0.530% 0.510%
Columbia Small Cap Fund ........ 0.750% 0.750% 0.700% 0.650% 0.600% 0.550% 0.550% 0.550%
Columbia Small Company
Equity Fund ............... 0.750% 0.750% 0.700% 0.650% 0.650% 0.650% 0.650% 0.650%
For the period November 1, 2004 through March 18, 2005, Columbia received a
monthly investment advisory fee based on the average daily net assets of the
Columbia Large Cap Growth Fund at the following annual rates:
AVERAGE DAILY NET ASSETS ANNUAL FEE RATE
------------------------ ---------------
First $500 million 0.70%
$500 million to $1 billion 0.65%
$1 billion to $1.5 billion 0.60%
$1.5 billion to $3 billion 0.55%
$3 billion to $6 billion 0.53%
Over $6 billion 0.51%
77
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA EQUITY FUNDS
Prior to November 1, 2004, Columbia received a monthly investment advisory fee
based on the average daily net assets of each of the Funds at the following
annual rates:
FEES ON FEES ON FEES ON FEES ON FEES ON
AVERAGE AVERAGE AVERAGE AVERAGE AVERAGE
NET ASSETS NET ASSETS NET ASSETS NET ASSETS NET ASSETS
FIRST $500 MILLION $1 BILLION TO $1.5 BILLION OVER
$500 MILLION TO $1 BILLION $1.5 BILLION TO $2 BILLION $2 BILLION
------------ ------------- ------------- ------------- ----------
Columbia Asset Allocation Fund ......... 0.75% 0.70% 0.65% 0.60% 0.55%
Columbia Large Cap Growth Fund ......... 0.75% 0.70% 0.65% 0.60% 0.55%
Columbia Disciplined Value Fund ........ 0.75% 0.70% 0.65% 0.60% 0.55%
Columbia Large Cap Core Fund ........... 0.75% 0.70% 0.65% 0.60% 0.55%
Columbia Small Cap Fund ................ 0.75% 0.70% 0.65% 0.60% 0.55%
Columbia Small Company Equity Fund ..... 0.75% 0.70% 0.65% 0.65% 0.65%
For the six months ended March 31, 2005, the annualized effective investment
advisory fee rates for the Funds were as follows:
Columbia Asset Allocation Fund ............................... 0.67%
Columbia Large Cap Growth Fund ............................... 0.67%
Columbia Disciplined Value Fund .............................. 0.71%
Columbia Large Cap Core Fund ................................. 0.71%
Columbia Small Cap Fund ...................................... 0.69%
Columbia Small Company Equity Fund ........................... 0.75%
ADMINISTRATION FEE
Columbia provides administrative and other services to the Funds, except
Columbia Large Cap Growth Fund, for a monthly administration fee at the annual
rate of 0.067% of each Fund's average daily net assets.
Columbia provides administrative and other services to Columbia Large Cap Growth
Fund for a monthly administration fee at the annual rate of 0.05% of the Fund's
average daily net assets. Prior to March 19, 2005, Columbia received a monthly
administration fee at the annual rate of 0.067% of the Fund's average daily net
assets. For the six months ended March 31, 2005, the Fund's annualized effective
administration fee rate was 0.065%.
PRICING AND BOOKKEEPING FEES
Columbia is responsible for providing pricing and bookkeeping services to the
Funds under a pricing and bookkeeping agreement. Under a separate agreement (the
"Outsourcing Agreement"), Columbia has delegated those functions to State Street
Corporation ("State Street"). As a result, Columbia pays the total fees
collected to State Street under the Outsourcing Agreement.
Under its pricing and bookkeeping agreement with the Funds, Columbia receives an
annual fee based on the average daily net assets of each Fund at the following
annual rates:
ANNUAL
FEE
AVERAGE DAILY NET ASSETS RATE
- ------------------------ --------
Under $50 million $ 25,000
Over $50 million but less than $200 million $ 35,000
Over $200 million but less than $500 million $ 50,000
Over $500 million but less than $1 billion $ 85,000
Over $1 billion $125,000
The annual fees for a Fund with more than 25% in non-domestic assets, as
measured on a monthly basis, will be 150% of the fees disclosed above. An
additional flat rate fee of $10,000 is charged to each Fund due to its multiple
class structure. The Funds also pay additional fees for pricing services based
on the number of securities held by each Fund.
For the six months ended March 31, 2005, the annualized effective pricing and
bookkeeping fee rates for the Funds, inclusive of out-of-pocket expenses, were
as follows:
Columbia Asset Allocation Fund ............................... 0.036%
Columbia Large Cap Growth Fund ............................... 0.010%
Columbia Disciplined Value Fund .............................. 0.013%
Columbia Large Cap Core Fund ................................. 0.016%
Columbia Small Cap Fund ...................................... 0.008%
Columbia Small Company Equity Fund ........................... 0.015%
TRANSFER AGENT FEE
Columbia Funds Services, Inc. (the "Transfer Agent"), an affiliate of Columbia,
provides shareholder services to the Funds and has subcontracted with Boston
Financial
78
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA EQUITY FUNDS
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.
The Transfer Agent has voluntarily agreed to waive a portion of its transfer
agent fee for the Columbia Large Cap Core Fund and Columbia Small Company Equity
Fund. These arrangements may be revised or discontinued by the Transfer Agent at
any time. For the six months ended March 31, 2005, the Transfer Agent waived
fees of $8,976 and $18,132 for the Columbia Large Cap Core Fund and Columbia
Small Company Equity Fund, respectively.
For the six months ended March 31, 2005, the annualized effective transfer agent
fee rates for the Funds, inclusive of out-of-pocket expenses and net of waiver,
were as follows:
Columbia Asset Allocation Fund ............................... 0.24%
Columbia Large Cap Growth Fund ............................... 0.22%
Columbia Disciplined Value Fund .............................. 0.17%
Columbia Large Cap Core Fund ................................. 0.24%
Columbia Small Cap Fund ...................................... 0.09%
Columbia Small Company Equity Fund ........................... 0.20%
UNDERWRITING DISCOUNTS, SERVICE AND DISTRIBUTION FEES
Columbia Funds Distributor, Inc. (the "Distributor"), an affiliate of Columbia,
is the principal underwriter of the Funds. For the six months ended March 31,
2005, the Distributor has retained net underwriting discounts and CDSC fees as
follows:
FRONT-END SALES CHARGE CDSC
---------------------- -------------------------------------------
CLASS A CLASS T CLASS A CLASS B CLASS C CLASS G CLASS T
------- ------- ------- ------- ------- ------- -------
Columbia Asset Allocation Fund ........ $2,220 $2,019 $ -- $ 4,867 $ 46 $38,438 $ --
Columbia Large Cap Growth Fund ........ 2,902 5,052 -- 5,798 305 49,208 --
Columbia Disciplined Value Fund ....... 2,662 2,057 -- 1,540 7 6,405 --
Columbia Large Cap Core Fund .......... 1,568 2,809 3,331 6,080 198 22,329 --
Columbia Small Cap Fund ............... 5,919 3,337 1,394 35,516 5,976 6,083 1
Columbia Small Company Equity Fund .... 2,538 1,344 1,302 3,418 290 4,005 --
The Funds have adopted a 12b-1 plan (the "Plan") which requires the payment of a
monthly service and distribution fee to the Distributor based on the average
daily net assets of each Fund at the following annual rates:
DISTRIBUTION FEE
-------------------------------------
CLASS A CLASS B CLASS C CLASS G
------- ------- ------- -------
Columbia Asset Allocation Fund .......... 0.10% 0.75% 0.75% 0.65%
Columbia Large Cap Growth Fund .......... 0.10% 0.75% 0.75% 0.65%
Columbia Disciplined Value Fund ......... 0.10% 0.75% 0.75% 0.65%
Columbia Large Cap Core Fund ............ 0.10% 0.75% 0.75% 0.65%
Columbia Small Cap Fund ................. 0.10% 0.75% 0.75% 0.65%
Columbia Small Company Equity Fund ...... 0.10% 0.75% 0.75% 0.65%
SERVICE FEE
-------------------------------------
CLASS A CLASS B CLASS C CLASS G
------- ------- ------- -------
Columbia Asset Allocation Fund .......... 0.25% 0.25% 0.25% 0.50%
Columbia Large Cap Growth Fund .......... 0.25% 0.25% 0.25% 0.50%
Columbia Disciplined Value Fund ......... 0.25% 0.25% 0.25% 0.50%
Columbia Large Cap Core Fund ............ 0.25% 0.25% 0.25% 0.50%
Columbia Small Cap Fund ................. 0.25% 0.25% 0.25% 0.50%
Columbia Small Company Equity Fund ...... 0.25% 0.25% 0.25% 0.50%
79
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA EQUITY FUNDS
The Funds do not intend to pay total distribution and service fees in excess of
0.25% and 0.95% annually for Class A and Class G shares of the Funds,
respectively. Of the 0.50% service fee for Class G shares, 0.25% relates to
shareholder liaison fees and 0.25% relates to administration support fees.
The CDSC and the fees received from the Plan are used principally as repayment
to the Distributor for amounts paid by the Distributor to dealers who sold such
shares.
SHAREHOLDER SERVICES FEES
The Funds have adopted shareholder services plans that permit them to pay for
certain services provided to Class T and Class Z shareholders by their financial
advisors. Currently, the service plan has not been implemented with respect to
the Funds' Class Z shares. The annual service fee may equal up to 0.50% for
Class T shares. The Funds do not intend to pay more than 0.30% annually for
Class T shareholder services fees.
EXPENSE LIMITS AND FEE WAIVERS
Effective March 19, 2005, 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 0.84% and 0.89% annually of the average
daily net assets for the Columbia Large Cap Growth Fund and the Columbia Large
Cap Core Fund, respectively. These arrangements may be revised or discontinued
at any time.
CUSTODY CREDITS
Each Fund has an agreement with its custodian bank under which custody fees may
be reduced by balance credits. The Funds could have invested a portion of the
assets utilized in connection with the expense offset arrangement in an
income-producing asset if they had not entered into such an agreement.
FEES PAID TO OFFICERS AND DIRECTORS
With the exception of one officer, all officers of the Funds are employees of
Columbia or its affiliates and receive no compensation from the Funds. The Board
of Trustees appointed a Chief Compliance Officer to the Funds in accordance with
federal securities regulations. Each Fund, along with other affiliated funds,
will pay its pro-rata share of the expenses associated with the Office of the
Chief Compliance Officer. Each Fund's fee for the Office of the Chief Compliance
Officer will not exceed $15,000 per year.
The Funds' Trustees may participate in a deferred compensation plan which may be
terminated at any time. Obligations of the plan will be paid solely out of the
Funds' assets.
OTHER
Columbia provides certain services to the Funds related to Sarbanes-Oxley
compliance. These amounts are included in "Other expenses" on the Statements of
Operations. For the six months ended March 31, 2005, the Funds paid fees to
Columbia for such services as follows:
Columbia Asset Allocation Fund .................................. $ 964
Columbia Large Cap Growth Fund .................................. 1,231
Columbia Disciplined Value Fund ................................. 975
Columbia Large Cap Core Fund .................................... 944
Columbia Small Cap Fund ......................................... 1,601
Columbia Small Company Equity Fund .............................. 957
NOTE 5. PORTFOLIO INFORMATION
For the six months ended March 31, 2005, the cost of purchases and proceeds from
sales of securities, excluding short-term obligations, were as follows:
OTHER INVESTMENT SECURITIES
---------------------------
PURCHASES SALES
---------------------------
Columbia Asset Allocation Fund..................... $130,707,761 $174,162,641
Columbia Large Cap Growth Fund..................... 468,985,667 536,470,826
Columbia Disciplined Value Fund.................... 187,093,140 212,818,712
Columbia Large Cap Core Fund....................... 274,944,702 334,394,717
Columbia Small Cap Fund............................ 147,017,991 236,625,375
Columbia Small Company Equity Fund................. 93,619,327 140,513,967
80
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA EQUITY FUNDS
U.S. GOVERNMENT SECURITIES
---------------------------
PURCHASES SALES
---------------------------
Columbia Asset Allocation Fund .................... $19,902,700 $14,397,791
NOTE 6. LINE OF CREDIT
The Funds and other affiliated funds participate in a $350,000,000 committed
unsecured revolving line of credit provided by State Street Bank and Trust
Company. Borrowings are used for temporary or emergency purposes to facilitate
portfolio liquidity. Interest is charged to each participating fund based on its
borrowings at a rate per annum equal to the Federal Funds rate plus 0.50%. In
addition, a commitment fee of 0.10% per annum is accrued and apportioned among
the participating funds based on their pro-rata portion of the unutilized line
of credit. The commitment fee is included in "Other expenses" on the Statements
of Operations. For the six months ended March 31, 2005, the Funds did not borrow
under this arrangement.
NOTE 7. DISCLOSURE OF SIGNIFICANT
RISKS AND CONTINGENCIES
FOREIGN SECURITIES
There are certain additional risks involved when investing in foreign securities
that are not inherent with investments in domestic securities. These risks may
involve foreign currency exchange rate fluctuations, adverse political and
economic developments and the possible prevention of currency exchange or other
foreign governmental laws or restrictions. In addition, the liquidity of foreign
securities may be more limited than that of domestic securities.
Investments in emerging market countries are subject to additional risk. The
risk of foreign investments is typically increased in less developed countries.
These countries are also more likely to experience high levels of inflation,
deflation or currency devaluation which could hurt their economies and
securities markets.
HIGH-YIELD SECURITIES
Investing in high-yield securities may involve greater credit risk and
considerations not typically associated with investing in U.S. Government bonds
and other higher quality fixed income securities. These securities are
non-investment grade securities, often referred to as "junk bonds." Economic
downturns may disrupt the high yield market and impair the ability of issuers to
repay principal and interest. Also, an increase in interest rates would likely
have an adverse impact on the value of such obligations. Moreover, high-yield
securities may be less liquid to the extent that there is no established retail
secondary market.
INDUSTRY FOCUS
The Funds may focus their investments in certain industries, subjecting them to
greater risk than funds that are more diversified.
LEGAL PROCEEDINGS
On February 9, 2005, Columbia and the Distributor (collectively, the "Columbia
Group") entered into an Assurance of Discontinuance with the New York Attorney
General ("NYAG") (the "NYAG Settlement") and consented to the entry of a
cease-and-desist order by the Securities and Exchange Commission ("SEC") (the
"SEC Order"). The SEC Order and the NYAG Settlement are referred to collectively
as the "Settlements". The Settlements contain substantially the same terms and
conditions as outlined in the agreements in principle which 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 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 funds
management fees collectively by
81
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA EQUITY FUNDS
$32 million per year for five years, for a projected total of $160 million in
management fee reductions.
Pursuant to the procedures set forth in the SEC order, the $140 million in
settlement amounts described above will be distributed in accordance with a
distribution plan to be developed by an independent distribution consultant, who
is acceptable to the SEC staff and the Columbia Funds' independent trustees. The
distribution plan must be based on a methodology developed in consultation with
the Columbia Group and the Funds' independent trustees and not unacceptable to
the staff of the SEC. At this time, the distribution plan is still under
development. As such, any gain to the fund or its shareholders can not currently
be determined.
As a result of these matters or any adverse publicity or other developments
resulting from them, there may be increased redemptions or reduced sales of fund
shares, which could increase transaction costs or operating expenses, or have
other adverse consequences for the funds.
A copy of the SEC Order is available on the SEC website at http://www.sec.gov. A
copy of the NYAG Settlement is available as part of the Bank of America
Corporation Form 8-K filing on February 10, 2005.
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 Funds and other affiliated funds participated in
securities class action settlements for which the funds were eligible.
Specifically, plaintiffs allege that defendants failed to submit proof of claims
in connection with settlements of securities class action lawsuits filed against
companies in which the funds held positions.
In 2004, certain Columbia funds, advisers and affiliated entities were named as
defendants in certain purported shareholder class and derivative actions making
claims, including claims under the Investment Company and the Investment
Advisers Acts of 1940 and state law. The suits allege, inter alia, that the fees
and expenses paid by the funds are excessive and that the advisers and their
affiliates inappropriately used fund assets to distribute the funds and for
other improper purpose. On March 2, 2005, the actions were consolidated in the
Massachusetts federal court as In re Columbia Entities Litigation. The
plaintiffs are expected to file a consolidated amended complaint in June 2005.
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.
In connection with events described in detail above, various parties have filed
suit against certain funds, their Boards, FleetBoston Financial Corporation and
its affiliated entities and/or Bank of America Corporation and its affiliated
entities. More than 300 cases including those filed against entities
unaffiliated with the funds, their Boards, FleetBoston Financial Corporation and
its affiliated entities and/or Bank of America Corporation and its affiliated
entities have been transferred to the Federal District Court in Maryland and
consolidated in a multi-district proceeding (the "MDL"). On March 21, 2005
purported class action plaintiffs filed suit in Massachusetts state court
alleging that the conduct, including market timing, entitles Class B
shareholders in certain Columbia funds to an exemption from contingent deferred
sales charges upon early redemption (the "CDSC Lawsuit"). The CDSC Lawsuit has
been removed to federal court in Massachusetts and the federal Judicial Panel
has conditionally ordered its transfer to the MDL. The MDL is ongoing.
Accordingly, an estimate of the financial impact of this litigation on any Fund,
if any, can not currently be made.
For the six months ended March 31, 2005, Columbia has assumed legal, consulting
services and Trustees' fees incurred by the Funds in connection with these
matters as follows:
Columbia Asset Allocation Fund ................................. $ 4,751
Columbia Large Cap Growth Fund ................................. 11,375
Columbia Disciplined Value Fund ................................ 5,055
Columbia Large Cap Core Fund ................................... 4,524
Columbia Small Cap Fund ........................................ 18,839
Columbia Small Company Equity Fund ............................. 4,418
82
________________________________________________________________________________
MARCH 31, 2005 (UNAUDITED) COLUMBIA EQUITY FUNDS
NOTE 8. BUSINESS COMBINATIONS AND MERGERS
As of the end of business on March 18, 2005, the Columbia Growth Fund, a series
of Columbia Fund Trust XI, merged into the Columbia Large Cap Growth Fund. The
Columbia Large Cap Growth Fund received a tax-free transfer of assets from the
Columbia Growth Fund as follows:
SHARES NET ASSETS UNREALIZED
ISSUED RECEIVED APPRECIATION 1
------------ ------------- --------------
34,544,160 $ 698,000,366 $ 75,087,939
NET ASSETS OF NET ASSETS
COLUMBIA COLUMBIA
NET ASSETS LARGE CAP LARGE CAP
OF COLUMBIA GROWTH FUND GROWTH FUND
GROWTH FUND IMMEDIATELY IMMEDIATELY
PRIOR TO PRIOR TO AFTER
COMBINATION COMBINATION COMBINATION
------------ ------------- --------------
$698,000,366 $ 902,362,481 $1,600,362,847
1 Unrealized appreciation is included in the Net Assets Received amount
shown above.
As of the end of business on March 18, 2005, the Columbia Common Stock Fund, a
series of Columbia Fund Trust XI, merged into the Columbia Large Cap Core Fund.
The Columbia Large Cap Core Fund received a tax-free transfer of assets from the
Columbia Common Stock Fund as follows:
SHARES NET ASSETS UNREALIZED
ISSUED RECEIVED APPRECIATION 1
------------ ------------- --------------
16,996,454 $ 213,171,601 $ 16,036,196
NET ASSETS OF NET ASSETS OF
NET ASSETS OF COLUMBIA COLUMBIA
COLUMBIA LARGE CAP LARGE CAP
COMMON CORE FUND CORE FUND
STOCK FUND IMMEDIATELY IMMEDIATELY
PRIOR TO PRIOR TO AFTER
COMBINATION COMBINATION COMBINATION
------------ ------------- --------------
$ 213,171,601 $ 367,205,776 $ 580,377,377
1 Unrealized appreciation is included in the Net Assets Received amount
shown above.
83
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA ASSET ALLOCATION FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS A SHARES 2005 2004 (A) 2003 (B)(C)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.06 $ 14.01 $ 12.86
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.13(e)(f) 0.21(e) 0.20(e)
Net realized and unrealized gain (loss)
on investments, foreign currency
and foreign capital gains tax 0.77 1.11 1.17
------------ ------------ ------------
Total from investment operations 0.90 1.32 1.37
------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.14) (0.27) (0.22)
From net realized gains -- -- --
------------ ------------ ------------
Total distributions declared
to shareholders (0.14) (0.27) (0.22)
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 15.82 $ 15.06 $ 14.01
Total return (h) 5.96%(i) 9.46%(j) 10.80%(i)(j)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (k) 1.38%(l) 1.43% 1.49%(l)
Net investment income (k) 1.70%(l) 1.43% 1.55%(l)
Waiver/reimbursement -- --%(m) 0.01%(l)
Portfolio turnover rate 37%(i) 75% 122%(i)
Net assets, end of period (000's) $ 3,462 $ 2,901 $ 1,211
------------ ------------ ------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------------------------
CLASS A SHARES 2002 2001 2000 1999 (D)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.95 $ 18.77 $ 17.73 $ 16.95
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.26(g) 0.34(e) 0.39(e) 0.44
Net realized and unrealized gain (loss)
on investments, foreign currency
and foreign capital gains tax (2.12)(g) (3.06) 1.36 1.17
------------ ------------ ------------ ------------
Total from investment operations (1.86) (2.72) 1.75 1.61
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.23) (0.36) (0.40) (0.40)
From net realized gains -- (0.74) (0.31) (0.43)
------------ ------------ ------------ ------------
Total distributions declared
to shareholders (0.23) (1.10) (0.71) (0.83)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 12.86 $ 14.95 $ 18.77 $ 17.73
Total return (h) (12.53)%(j) (15.08)%(j) 10.15%(j) 9.72%(j)
------------ ------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (k) 1.40% 1.26% 1.15% 1.16%
Net investment income (k) 1.73%(g) 2.07% 2.15% 2.27%
Waiver/reimbursement 0.13% 0.12% 0.15% 0.13%
Portfolio turnover rate 40% 65% 59% 135%
Net assets, end of period (000's) $ 43 $ 60 $ 186 $ 238
------------ ------------ ------------ ------------
(a) On October 13, 2003, the Liberty Asset Allocation Fund was renamed the
Columbia Asset Allocation Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Asset Allocation Fund, Prime A shares
were redesignated Liberty Asset Allocation Fund, Class A shares.
(d) The Fund began offering Prime A shares on November 1, 1998.
(e) Per share data was calculated using average shares outstanding during the
period.
(f) Net investment income per share reflects a special dividend which amounted
to $0.02 per share.
(g) The Fund adopted the provisions of the AICPA Audit Guide for Investment
Companies effective November 1, 2001. The effect of the changes for the
year ended October 31, 2002 on the net investment income per share, net
realized and unrealized gain per share and the ratio of net investment
income to average net assets is $(0.01), $0.01 and (0.05)%, respectively.
(h) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(i) Not annualized.
(j) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(k) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(l) Annualized.
(m) Rounds to less than 0.01%.
84
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA ASSET ALLOCATION FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS B SHARES 2005 2004 (a) 2003 (b)(c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.06 $ 14.00 $ 12.85
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.08(e)(f) 0.10(e) 0.12(e)
Net realized and unrealized gain (loss)
on investments, foreign currency
and foreign capital gains tax 0.75 1.11 1.17
------------ ------------ ------------
Total from investment operations 0.83 1.21 1.29
------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.08) (0.15) (0.14)
From net realized gains -- -- --
------------ ------------ ------------
Total distributions declared
to shareholders (0.08) (0.15) (0.14)
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 15.81 $ 15.06 $ 14.00
Total return (h) 5.50%(i) 8.68%(j) 10.13%(i)(j)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (k) 2.13%(l) 2.18% 2.17%(l)
Net investment income (k) 0.95%(l) 0.68% 0.95%(l)
Waiver/reimbursement -- --%(m) 0.01%(l)
Portfolio turnover rate 37%(i) 75% 122%(i)
Net assets, end of period (000's) $ 6,146 $ 4,926 $ 2,539
------------ ------------ ------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------------------------
CLASS B SHARES 2002 2001 2000 1999 (d)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.93 $ 18.75 $ 17.71 $ 16.95
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.14(g) 0.22(e) 0.26(e) 0.29
Net realized and unrealized gain (loss)
on investments, foreign currency
and foreign capital gains tax (2.08)(g) (3.06) 1.35 1.19
------------ ------------ ------------ ------------
Total from investment operations (1.94) (2.84) 1.61 1.48
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.14) (0.24) (0.26) (0.29)
From net realized gains -- (0.74) (0.31) (0.43)
------------ ------------ ------------ ------------
Total distributions declared
to shareholders (0.14) (0.98) (0.57) (0.72)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 12.85 $ 14.93 $ 18.75 $ 17.71
Total return (h) (13.06)% (15.68)%(j) 9.29%(j) 8.91%(j)
------------ ------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (k) 2.06% 1.99% 1.89% 1.90%
Net investment income (k) 1.07%(g) 1.34% 1.41% 1.53%
Waiver/reimbursement -- 0.04% 0.17% 0.18%
Portfolio turnover rate 40% 65% 59% 135%
Net assets, end of period (000's) $ 276 $ 389 $ 526 $ 519
------------ ------------ ------------ ------------
(a) On October 13, 2003, the Liberty Asset Allocation Fund was renamed the
Columbia Asset Allocation Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Asset Allocation Fund, Prime B shares
were redesignated Liberty Asset Allocation Fund, Class B shares.
(d) The Fund began offering Prime B shares on November 1, 1998.
(e) Per share data was calculated using average shares outstanding during the
period.
(f) Net investment income per share reflects a special dividend which amounted
to $0.02 per share.
(g) The Fund adopted the provisions of the AICPA Audit Guide for Investment
Companies effective November 1, 2001. The effect of the changes for the
year ended October 31, 2002 on the net investment income per share, net
realized and unrealized gain per share and the ratio of net investment
income to average net assets is $(0.01), $0.01 and (0.05)%, respectively.
(h) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(i) Not annualized.
(j) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(k) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(l) Annualized.
(m) Rounds to less than 0.01%.
85
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA ASSET ALLOCATION FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS C SHARES 2005 2004 (a) 2003 (b)(c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.06 $ 14.00 $ 13.08
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (d) 0.07(e) 0.10 0.10
Net realized and unrealized gain on investments,
foreign currency and foreign capital gains tax 0.77 1.11 0.93
------------ ------------ ------------
Total from investment operations 0.84 1.21 1.03
------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.08) (0.15) (0.11)
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 15.82 $ 15.06 $ 14.00
Total return (f) 5.57%(g) 8.67%(h) 7.93%(g)(h)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 2.13%(j) 2.19% 2.28%(j)
Net investment income (i) 0.95%(j) 0.69% 0.85%(j)
Waiver/reimbursement -- --%(k) 0.01%(j)
Portfolio turnover rate 37%(g) 75% 122%(g)
Net assets, end of period (000's) $ 560 $ 514 $ 187
------------ ------------ ------------
(a) On October 13, 2003, the Liberty Asset Allocation Fund was renamed the
Columbia Asset Allocation Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) Class C shares were initially offered on November 18, 2002. Per share data
and total return reflect activity from that date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Net investment income per share reflects a special dividend which amounted
to $0.02 per share.
(f) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(g) Not annualized.
(h) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
(k) Rounds to less than 0.01%.
86
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA ASSET ALLOCATION FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS G SHARES 2005 2004 (a) 2003 (b)(c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.06 $ 14.00 $ 12.84
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.08(d)(e) 0.11(d) 0.12(d)
Net realized and unrealized gain (loss)
on investments, foreign currency
and foreign capital gains tax 0.75 1.11 1.17
------------ ------------ ------------
Total from investment operations 0.83 1.22 1.29
------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.08) (0.16) (0.13)
From net realized gains -- -- --
------------ ------------ ------------
Total distributions declared
to shareholders (0.08) (0.16) (0.13)
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 15.81 $ 15.06 $ 14.00
Total return (g) 5.53%(h) 8.72%(i) 10.12%(h)(i)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 2.08%(k) 2.15% 2.19%(k)
Net investment income (j) 1.00%(k) 0.71% 1.02%(k)
Waiver/reimbursement -- --%(l) 0.01%(k)
Portfolio turnover rate 37%(h) 75% 122%(h)
Net assets, end of period (000's) $ 31,155 $ 39,892 $ 56,383
------------ ------------ ------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------------------------
CLASS G SHARES 2002 2001 2000 1999
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.92 $ 18.74 $ 17.70 $ 16.92
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.14(f) 0.22(d) 0.24(d) 0.25
Net realized and unrealized gain (loss)
on investments, foreign currency
and foreign capital gains tax (2.08)(f) (3.06) 1.36 1.21
------------ ------------ ------------ ------------
Total from investment operations (1.94) (2.84) 1.60 1.46
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.14) (0.24) (0.25) (0.25)
From net realized gains -- (0.74) (0.31) (0.43)
------------ ------------ ------------ ------------
Total distributions declared
to shareholders (0.14) (0.98) (0.56) (0.68)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 12.84 $ 14.92 $ 18.74 $ 17.70
Total return (g) (13.08)%(i) (15.72)%(i) 9.20% 8.76%
------------ ------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 2.09% 2.01% 1.99% 2.00%
Net investment income (j) 1.04%(f) 1.33% 1.31% 1.43%
Waiver/reimbursement 0.03% 0.01% -- --
Portfolio turnover rate 40% 65% 59% 135%
Net assets, end of period (000's) $ 73,183 $ 106,074 $ 105,980 $ 91,199
------------ ------------ ------------ ------------
(a) On October 13, 2003, the Liberty Asset Allocation Fund was renamed the
Columbia Asset Allocation Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Asset Allocation Fund, Retail B shares
were redesignated Liberty Asset Allocation Fund, Class G shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Net investment income per share reflects a special dividend which amounted
to $0.02 per share.
(f) The Fund adopted the provisions of the AICPA Audit Guide for Investment
Companies effective November 1, 2001. The effect of the changes for the
year ended October 31, 2002 on the net investment income per share, net
realized and unrealized gain per share and the net ratio of investment
income to average net assets is $(0.01), $0.01 and (0.05)%, respectively.
(g) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(h) Not annualized.
(i) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(j) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(k) Annualized.
(l) Rounds to less than 0.01%.
87
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA ASSET ALLOCATION FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS T SHARES 2005 2004 (a) 2003 (b)(c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.07 $ 14.01 $ 12.87
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.13(d)(e) 0.21(d) 0.21(d)
Net realized and unrealized gain (loss)
on investments, foreign currency
and foreign capital gains tax 0.76 1.11 1.16
------------ ------------ ------------
Total from investment operations 0.89 1.32 1.37
------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.13) (0.26) (0.23)
From net realized gains -- -- --
------------ ------------ ------------
Total distributions declared
to shareholders (0.13) (0.26) (0.23)
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 15.83 $ 15.07 $ 14.01
Total return (g) 5.93%(h) 9.47%(i) 10.75%(h)(i)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 1.43%(k) 1.49% 1.49%(k)
Net investment income (j) 1.65%(k) 1.37% 1.73%(k)
Waiver/reimbursement -- --%(l) 0.01%(k)
Portfolio turnover rate 37%(h) 75% 122%(h)
Net assets, end of period (000's) $ 184,599 $ 183,438 $ 189,580
------------ ------------ ------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------------------------
CLASS T SHARES 2002 2001 2000 1999
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.95 $ 18.79 $ 17.74 $ 16.95
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.25(f) 0.33(d) 0.37(d) 0.37
Net realized and unrealized gain (loss)
on investments, foreign currency
and foreign capital gains tax (2.09)(f) (3.08) 1.36 1.21
------------ ------------ ------------ ------------
Total from investment operations (1.84) (2.75) 1.73 1.58
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.24) (0.35) (0.37) (0.36)
From net realized gains -- (0.74) (0.31) (0.43)
------------ ------------ ------------ ------------
Total distributions declared
to shareholders (0.24) (1.09) (0.68) (0.79)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 12.87 $ 14.95 $ 18.79 $ 17.74
Total return (g) (12.45)%(i) (15.18)%(i) 9.98% 9.53%
------------ ------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 1.37% 1.33% 1.29% 1.32%
Net investment income (j) 1.76%(f) 2.01% 2.01% 2.11%
Waiver/reimbursement 0.01% 0.01% -- --
Portfolio turnover rate 40% 65% 59% 135%
Net assets, end of period (000's) $ 198,154 $ 289,882 $ 371,590 $ 389,077
------------ ------------ ------------ ------------
(a) On October 13, 2003, the Liberty Asset Allocation Fund was renamed the
Columbia Asset Allocation Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Asset Allocation Fund, Retail A shares
were redesignated Liberty Asset Allocation Fund, Class T shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Net investment income per share reflects a special dividend which amounted
to $0.02 per share.
(f) The Fund adopted the provisions of the AICPA Audit Guide for Investment
Companies effective November 1, 2001. The effect of the changes for the
year ended October 31, 2002 on the net investment income per share, net
realized and unrealized gain per share and the ratio of net investment
income to average net assets is $(0.01), $0.01 and (0.05)%, respectively.
(g) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(h) Not annualized.
(i) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(j) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(k) Annualized.
(l) Rounds to less than 0.01%.
88
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA ASSET ALLOCATION FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS Z SHARES 2005 2004 (A) 2003 (B)(C)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.06 $ 14.01 $ 12.87
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.15(d)(e) 0.25(d) 0.25(d)
Net realized and unrealized gain (loss)
on investments, foreign currency
and foreign capital gains tax 0.76 1.11 1.16
------------ ------------ ------------
Total from investment operations 0.91 1.36 1.41
------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.16) (0.31) (0.27)
From net realized gains -- -- --
------------ ------------ ------------
Total distributions declared
to shareholders (0.16) (0.31) (0.27)
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 15.81 $ 15.06 $ 14.01
Total return (g) 6.02%(h) 9.75%(i) 11.07%(h)(i)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 1.13%(k) 1.19% 1.16%(k)
Net investment income (j) 1.96%(k) 1.67% 2.04%(k)
Waiver/reimbursement -- --%(l) 0.01%(k)
Portfolio turnover rate 37%(h) 75% 122%(h)
Net assets, end of period (000's) $ 177,890 $ 191,556 $ 217,935
------------ ------------ ------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------------------------
CLASS Z SHARES 2002 2001 2000 1999
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.94 $ 18.78 $ 17.73 $ 16.96
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.29(f) 0.37(d) 0.41(d) 0.40
Net realized and unrealized gain (loss)
on investments, foreign currency
and foreign capital gains tax (2.09)(f) (3.08) 1.36 1.20
------------ ------------ ------------ ------------
Total from investment operations (1.80) (2.71) 1.77 1.60
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.27) (0.39) (0.41) (0.40)
From net realized gains -- (0.74) (0.31) (0.43)
------------ ------------ ------------ ------------
Total distributions declared
to shareholders (0.27) (1.13) (0.72) (0.83)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 12.87 $ 14.94 $ 18.78 $ 17.73
Total return (g) (12.23)%(i) (14.94)% 10.21% 9.63%
------------ ------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 1.12% 1.11% 1.09% 1.12%
Net investment income (j) 2.01%(f) 2.23% 2.21% 2.31%
Waiver/reimbursement 0.03% -- -- --
Portfolio turnover rate 40% 65% 59% 135%
Net assets, end of period (000's) $ 163,934 $ 230,562 $ 290,970 $ 269,851
------------ ------------ ------------ ------------
(a) On October 13, 2003, the Liberty Asset Allocation Fund was renamed the
Columbia Asset Allocation Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Asset Allocation Fund, Trust shares were
redesignated Liberty Asset Allocation Fund, Class Z shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Net investment income per share reflects a special dividend which amounted
to $0.02 per share.
(f) The Fund adopted the provisions of the AICPA Audit Guide for Investment
Companies effective November 1, 2001. The effect of the changes for the
year ended October 31, 2002 on the net investment income per share, net
realized and unrealized gain per share and the ratio of net investment
income to average net assets is $(0.01), $0.01 and (0.05)%, respectively.
(g) Total return at net asset value assuming all distributions reinvested.
(h) Not annualized.
(i) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(j) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(k) Annualized.
(l) Rounds to less than 0.01%.
89
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA LARGE CAP GROWTH FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS A SHARES 2005 2004 (a) 2003 (b)(c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 18.57 $ 17.59 $ 16.06
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.06(e)(f) (0.08)(e) (0.05)(e)
Net realized and unrealized
gain (loss) on investments 1.31 1.06 1.61
------------ ------------ ------------
Total from investment operations 1.37 0.98 1.56
------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.02) -- (0.03)
From net realized gains -- -- --
------------ ------------ ------------
Total distributions declared
to shareholders (0.02) -- (0.03)
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 19.92 $ 18.57 $ 17.59
Total return (g) 7.38%(h) 5.57%(i) 9.72%(h)(i)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 1.27%(k) 1.28% 1.30%(k)
Net investment income (loss) (j) 0.58%(k) (0.40)% (0.30)%(k)
Waiver/reimbursement -- --%(l) 0.02%(k)
Portfolio turnover rate 46%(h) 126% 91%(h)
Net assets, end of period (000's) $ 9,732 $ 3,867 $ 1,887
------------ ------------ ------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------------------------
CLASS A SHARES 2002 2001 2000 1999 (d)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 19.74 $ 32.31 $ 28.95 $ 24.49
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.03(e) (0.02) (0.05)(e) (0.01)
Net realized and unrealized
gain (loss) on investments (3.71) (8.92) 5.13 6.37
------------ ------------ ------------ ------------
Total from investment operations (3.68) (8.94) 5.08 6.36
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income -- -- -- --
From net realized gains -- (3.63) (1.72) (1.90)
------------ ------------ ------------ ------------
Total distributions declared
to shareholders -- (3.63) (1.72) (1.90)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 16.06 $ 19.74 $ 32.31 $ 28.95
Total return (g) (18.64)%(i) (30.43)%(i) 18.36%(i) 27.30%(i)
------------ ------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 1.12% 1.13% 1.12% 1.14%
Net investment income (loss) (j) 0.14% (0.10)% (0.17)% (0.05)%
Waiver/reimbursement 0.05% 0.03% 0.11% 0.14%
Portfolio turnover rate 43% 48% 54% 53%
Net assets, end of period (000's) $ 56 $ 671 $ 142 $ 107
------------ ------------ ------------ ------------
(a) On October 13, 2003, the Liberty Equity Growth Fund was renamed the
Columbia Large Cap Growth Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Equity Growth Fund, Prime A shares were
redesignated Liberty Equity Growth Fund, Class A shares.
(d) The Fund began issuing Prime A shares on November 1, 1998.
(e) Per share data was calculated using average shares outstanding during the
period.
(f) Net investment income per share reflects a special dividend which amounted
to $0.09 per share.
(g) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(h) Not annualized.
(i) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(j) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(k) Annualized.
(l) Rounds to less than 0.01%.
90
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA LARGE CAP GROWTH FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS B SHARES 2005 2004 (a) 2003 (b)(c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 17.76 $ 16.96 $ 15.57
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.01)(e)(f) (0.21)(e) (0.14)(e)
Net realized and unrealized
gain (loss) on investments 1.25 1.01 1.53
------------ ------------ ------------
Total from investment operations 1.24 0.80 1.39
------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net realized gains -- -- --
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 19.00 $ 17.76 $ 16.96
Total return (g) 6.98%(h) 4.72%(i) 8.93%(h)(i)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 2.02%(k) 2.03% 2.13%(k)
Net investment loss (j) (0.15)%(k) (1.15)% (0.97)%(k)
Waiver/reimbursement -- --%(l) 0.02%(k)
Portfolio turnover rate 46%(h) 126% 91%(h)
Net assets, end of period (000's) $ 7,024 $ 3,195 $ 1,013
------------ ------------ ------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------------------------
CLASS B SHARES 2002 2001 2000 1999 (d)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 19.32 $ 31.94 $ 28.84 $ 24.49
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.14)(e) (0.19) (0.29)(e) (0.10)
Net realized and unrealized
gain (loss) on investments (3.61) (8.80) 5.11 6.35
------------ ------------ ------------ ------------
Total from investment operations (3.75) (8.99) 4.82 6.25
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net realized gains -- (3.63) (1.72) (1.90)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 15.57 $ 19.32 $ 31.94 $ 28.84
Total return (g) (19.41)%(i) (31.00)%(i) 17.48%(i) 26.79%(i)
------------ ------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 1.99% 1.95% 1.87% 1.87%
Net investment loss (j) (0.73)% (0.92)% (0.92)% (0.78)%
Waiver/reimbursement 0.05% 0.03% 0.15% 0.32%
Portfolio turnover rate 43% 48% 54% 53%
Net assets, end of period (000's) $ 207 $ 309 $ 450 $ 246
------------ ------------ ------------ ------------
(a) On October 13, 2003, the Liberty Equity Growth Fund was renamed the
Columbia Large Cap Growth Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Equity Growth Fund, Prime B shares were
redesignated Liberty Equity Growth Fund, Class B shares.
(d) The Fund began issuing Prime B shares on November 1, 1998.
(e) Per share data was calculated using average shares outstanding during the
period.
(f) Net investment loss per share reflects a special dividend which amounted
to $0.09 per share.
(g) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(h) Not annualized.
(i) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(j) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(k) Annualized.
(l) Rounds to less than 0.01%.
91
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA LARGE CAP GROWTH FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS C SHARES 2005 2004 (a) 2003 (b)(c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 17.79 $ 16.98 $ 16.04
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (d) (0.01)(e) (0.21) (0.13)
Net realized and unrealized gain on investments 1.25 1.02 1.07
------------ ------------ ------------
Total from investment operations 1.24 0.81 0.94
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 19.03 $ 17.79 $ 16.98
Total return (f) 6.97%(g) 4.77%(h) 5.86%(g)(h)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 2.02%(j) 2.03% 2.00%(j)
Net investment loss (i) (0.11)%(j) (1.15)% (0.92)%(j)
Waiver/reimbursement -- --%(k) 0.02%(j)
Portfolio turnover rate 46%(g) 126% 91%(g)
Net assets, end of period (000's) $ 1,217 $ 780 $ 524
------------ ------------ ------------
(a) On October 13, 2003, the Liberty Equity Growth Fund was renamed the
Columbia Large Cap Growth Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) Class C shares were initially offered on November 18, 2002. Per share data
and total return reflect activity from that date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Net investment loss per share reflects a special dividend which amounted
to $0.09 per share.
(f) Total return at net asset value assuming no contingent deferred sales
charge.
(g) Not annualized.
(h) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
(k) Rounds to less than 0.01%.
92
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA LARGE CAP GROWTH FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS G SHARES 2005 2004 (a) 2003 (b)(c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 17.21 $ 16.43 $ 15.11
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss --(d)(e)(f) (0.20)(d) (0.15)(d)
Net realized and unrealized
gain (loss) on investments 1.20 0.98 1.47
------------ ------------ ------------
Total from investment operations 1.20 0.78 1.32
------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net realized gains -- -- --
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 18.41 $ 17.21 $ 16.43
Total return (g) 6.97%(h) 4.75%(i) 8.66%(h)(i)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 1.97%(k) 2.02% 2.31%(k)
Net investment loss (j) (0.03)%(k) (1.14)% (1.02)%(k)
Waiver/reimbursement -- --%(l) 0.02%(k)
Portfolio turnover rate 46%(h) 126% 91%(h)
Net assets, end of period (000's) $ 55,434 $ 46,328 $ 54,850
------------ ------------ ------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------------------------
CLASS G SHARES 2002 2001 2000 1999
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 18.79 $ 31.22 $ 28.27 $ 24.07
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.17)(d) (0.21) (0.35)(d) (0.20)
Net realized and unrealized
gain (loss) on investments (3.51) (8.59) 5.02 6.30
------------ ------------ ------------ ------------
Total from investment operations (3.68) (8.80) 4.67 6.10
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net realized gains -- (3.63) (1.72) (1.90)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 15.11 $ 18.79 $ 31.22 $ 28.27
Total return (g) (19.49)%(i) (31.16)%(i) 17.29%(i) 26.63%(i)
------------ ------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 2.18% 2.11% 2.07% 2.05%
Net investment loss (j) (0.92)% (1.08)% (1.11)% (0.96)%
Waiver/reimbursement 0.07% 0.02% 0.02% 0.03%
Portfolio turnover rate 43% 48% 54% 53%
Net assets, end of period (000's) $ 64,156 $ 92,292 $ 130,347 $ 71,525
------------ ------------ ------------ ------------
(a) On October 13, 2003, the Liberty Equity Growth Fund was renamed the
Columbia Large Cap Growth Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Equity Growth Fund, Retail B shares were
redesignated Liberty Equity Growth Fund, Class G shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Rounds to less than $0.01 per share.
(f) Net investment loss per share reflects a special dividend which amounted
to $0.09 per share.
(g) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(h) Not annualized.
(i) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(j) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(k) Annualized.
(l) Rounds to less than 0.01%.
93
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA LARGE CAP GROWTH FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS T SHARES 2005 2004 (a) 2003 (b)(c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 18.46 $ 17.50 $ 15.98
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.06(d)(e) (0.09)(d) (0.02)(d)
Net realized and unrealized
gain (loss) on investments 1.30 1.05 1.54
------------ ------------ ------------
Total from investment operations 1.36 0.96 1.52
------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.02) -- --
From net realized gains -- -- --
------------ ------------ ------------
Total distributions declared
to shareholders (0.02) -- --
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 19.80 $ 18.46 $ 17.50
Total return (f) 7.36%(g) 5.49%(h) 9.51%(g)(h)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.32%(j) 1.35% 1.45%(j)
Net investment income (loss) (i) 0.61%(j) (0.47)% (0.16)%(j)
Waiver/reimbursement -- --%(k) 0.02%(j)
Portfolio turnover rate 46%(g) 126% 91%(g)
Net assets, end of period (000's) $ 219,061 $ 219,129 $ 235,849
------------ ------------ ------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------------------------
CLASS T SHARES 2002 2001 2000 1999
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 19.70 $ 32.31 $ 28.99 $ 24.47
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.02)(d) (0.07) (0.10)(d) (0.06)
Net realized and unrealized
gain (loss) on investments (3.70) (8.91) 5.14 6.48
------------ ------------ ------------ ------------
Total from investment operations (3.72) (8.98) 5.04 6.42
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income -- -- -- --
From net realized gains -- (3.63) (1.72) (1.90)
------------ ------------ ------------ ------------
Total distributions declared
to shareholders -- (3.63) (1.72) (1.90)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 15.98 $ 19.70 $ 32.31 $ 28.99
Total return (f) (18.88)%(h) (30.57)%(h) 18.18% 27.55%
------------ ------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.34% 1.31% 1.28% 1.34%
Net investment income (loss) (i) (0.08)% (0.28)% (0.33)% (0.25)%
Waiver/reimbursement 0.07% 0.02% -- --
Portfolio turnover rate 43% 48% 54% 53%
Net assets, end of period (000's) $ 239,279 $ 346,214 $ 580,417 $ 443,639
------------ ------------ ------------ ------------
(a) On October 13, 2003, the Liberty Equity Growth Fund was renamed the
Columbia Large Cap Growth Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Equity Growth Fund, Retail A shares were
redesignated Liberty Equity Growth Fund, Class T shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Net investment income per share reflects a special dividend which amounted
to $0.09 per share.
(f) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(g) Not annualized.
(h) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
(k) Rounds to less than 0.01%.
94
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA LARGE CAP GROWTH FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS Z SHARES 2005 2004 (a) 2003 (b)(c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 18.87 $ 17.84 $ 16.28
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.09(d)(e) (0.03)(d) 0.05(d)
------------ ------------ ------------
Net realized and unrealized
gain (loss) on investments 1.33 1.07 1.57
------------ ------------ ------------
Total from investment operations 1.42 1.04 1.62
------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.03) (0.01) (0.06)
From net realized gains -- -- --
------------ ------------ ------------
Total distributions declared
to shareholders (0.03) (0.01) (0.06)
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 20.26 $ 18.87 $ 17.84
Total return (f) 7.54%(g) 5.83%(h) 9.93%(g)(h)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.02%(j) 1.03% 0.99%(j)
Net investment income (loss) (i) 0.90%(j) (0.15)% 0.30%(j)
Waiver/reimbursement -- --%(k) 0.02%(j)
Portfolio turnover rate 46%(g) 126% 91%(g)
Net assets, end of period (000's) $ 1,293,476 $ 634,710 $ 670,649
------------ ------------ ------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------------------------
CLASS Z SHARES 2002 2001 2000 1999
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 19.99 $ 32.61 $ 29.15 $ 24.52
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.07(d) 0.02 0.01(d) 0.03
Net realized and unrealized
gain (loss) on investments (3.78) (9.01) 5.18 6.50
------------ ------------ ------------ ------------
Total from investment operations (3.71) (8.99) 5.19 6.53
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income -- -- (0.01) --
From net realized gains -- (3.63) (1.72) (1.90)
------------ ------------ ------------ ------------
Total distributions declared
to shareholders -- (3.63) (1.73) (1.90)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 16.28 $ 19.99 $ 32.61 $ 29.15
Total return (f) (18.51)%(h) (30.29)%(h) 18.63% 28.07%
------------ ------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 0.91% 0.93% 0.91% 0.94%
Net investment income (loss) (i) 0.35% 0.10% 0.04% 0.15%
Waiver/reimbursement 0.05% 0.01% -- --
Portfolio turnover rate 43% 48% 54% 53%
Net assets, end of period (000's) $ 699,215 $ 845,887 $ 1,258,399 $ 1,041,378
------------ ------------ ------------ ------------
(a) On October 13, 2003, the Liberty Equity Growth Fund was renamed the
Columbia Large Cap Growth Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Equity Growth Fund, Trust shares were
redesignated Liberty Equity Growth Fund, Class Z shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Net investment income per share reflects a special dividend which amounted
to $0.09 per share.
(f) Total return at net asset value assuming all distributions reinvested.
(g) Not annualized.
(h) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
(k) Rounds to less than 0.01%.
95
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA DISCIPLINED VALUE FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS A SHARES 2005 2004 (a) 2003 (b)(c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.71 $ 11.02 $ 10.06
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (d) 0.11(e) 0.17 0.04
Net realized and unrealized gain on investments 1.04 1.75 0.92
------------ ------------ ------------
Total from investment operations 1.15 1.92 0.96
------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.10) (0.23) --
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 13.76 $ 12.71 $ 11.02
Total return (f) 9.07%(g) 17.53% 9.54%(g)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (h) 1.26%(i) 1.31% 1.31%(i)
Net investment income (h) 1.65%(i) 1.34% 0.49%(i)
Portfolio turnover rate 43%(g) 101% 50%(g)
Net assets, end of period (000's) $ 3,464 $ 2,511 $ 903
------------ ------------ ------------
(a) On October 13, 2003, the Liberty Equity Value Fund was renamed the
Columbia Disciplined Value Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) Class A shares were initially offered on November 25, 2002. Per share data
and total return reflect activity from that date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Net investment income per share reflects a special dividend which amounted
to $0.02 per share.
(f) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(g) Not annualized.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
96
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA DISCIPLINED VALUE FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS B SHARES 2005 2004 (a) 2003 (b)(c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.16 $ 10.49 $ 9.67
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (d) 0.06(e) 0.07 (0.02)
Net realized and unrealized gain on investments 0.99 1.67 0.84
------------ ------------ ------------
Total from investment operations 1.05 1.74 0.82
------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.05) (0.07) --
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 13.16 $ 12.16 $ 10.49
Total return (f) 8.64%(g) 16.64% 8.48%(g)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (h) 2.01%(i) 2.06% 2.26%(i)
Net investment income (loss) (h) 0.90%(i) 0.60% (0.27)%(i)
Portfolio turnover rate 43%(g) 101% 50%(g)
Net assets, end of period (000's) $ 3,424 $ 2,370 $ 338
------------ ------------ ------------
(a) On October 13, 2003, the Liberty Equity Value Fund was renamed the
Columbia Disciplined Value Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) Class B shares were initially offered on November 25, 2002. Per share data
and total return reflect activity from that date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Net investment income per share reflects a special dividend which amounted
to $0.02 per share.
(f) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(g) Not annualized.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
97
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA DISCIPLINED VALUE FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS C SHARES 2005 2004 (a) 2003 (b)(c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.14 $ 10.47 $ 9.67
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (d) 0.06(e) 0.07 (0.05)
Net realized and unrealized gain on investments 0.99 1.67 0.85
------------ ------------ ------------
Total from investment operations 1.05 1.74 0.80
------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.05) (0.07) --
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 13.14 $ 12.14 $ 10.47
Total return (f) 8.65%(g) 16.67% 8.27%(g)(h)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 2.01%(j) 2.07% 2.49%(j)
Net investment income (loss) (i) 0.90%(j) 0.63% (0.60)%(j)
Waiver/reimbursement -- -- 0.49%(j)
Portfolio turnover rate 43%(g) 101% 50%(g)
Net assets, end of period (000's) $ 451 $ 291 $ 24
------------ ------------ ------------
(a) On October 13, 2003, the Liberty Equity Value Fund was renamed the
Columbia Disciplined Value Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) Class C shares were initially offered on November 25, 2002. Per share data
and total return reflect activity from that date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Net investment income per share reflects a special dividend which amounted
to $0.02 per share.
(f) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(g) Not annualized.
(h) Had the Investment Advisor or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
98
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA DISCIPLINED VALUE FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS G SHARES 2005 2004 (a) 2003 (b)(c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.17 $ 10.50 $ 9.21
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.06(d)(e) 0.08(d) (0.04)(d)
Net realized and unrealized
gain (loss) on investments 0.98 1.67 1.33
------------ ------------ ------------
Total from investment operations 1.04 1.75 1.29
------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.05) (0.08) --
From net realized gains -- -- --
------------ ------------ ------------
Total distributions declared
to shareholders (0.05) (0.08) --
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 13.16 $ 12.17 $ 10.50
Total return (f) 8.58%(g) 16.67% 14.01%(g)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.96%(j) 2.06% 2.31%(j)
Net investment income (loss) (i) 0.95%(j) 0.64% (0.47)%(j)
Waiver/reimbursement -- -- --
Portfolio turnover rate 43%(g) 101% 50%(g)
Net assets, end of period (000's) $ 6,295 $ 7,502 $ 11,074
------------ ------------ ------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------------------------
CLASS G SHARES 2002 2001 2000 1999
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.10 $ 16.73 $ 18.08 $ 16.44
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.19) (0.10) (0.15) (0.15)
Net realized and unrealized
gain (loss) on investments (2.35) (1.64) 1.25 2.40
------------ ------------ ------------ ------------
Total from investment operations (2.54) (1.74) 1.10 2.25
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income -- -- -- --
From net realized gains (0.35) (2.89) (2.45) (0.61)
------------ ------------ ------------ ------------
Total distributions declared
to shareholders (0.35) (2.89) (2.45) (0.61)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 9.21 $ 12.10 $ 16.73 $ 18.08
Total return (f) (21.85)% (11.00)%(h) 7.12%(h) 13.81%
------------ ------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 2.18% 2.13% 2.09% 2.08%
Net investment income (loss) (i) (1.15)% (0.91)% (0.83)% (0.87)%
Waiver/reimbursement -- 0.02% 0.03% --
Portfolio turnover rate 99% 127% 72% 75%
Net assets, end of period (000's) $ 16,791 $ 25,776 $ 30,555 $ 30,988
------------ ------------ ------------ ------------
(a) On October 13, 2003, the Liberty Equity Value Fund was renamed the
Columbia Disciplined Value Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 25, 2002, the Galaxy Equity Value Fund, Retail B shares were
redesignated Liberty Equity Value Fund, Class G shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Net investment income per share reflects a special dividend which amounted
to $0.02 per share.
(f) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(g) Not annualized.
(h) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
99
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA DISCIPLINED VALUE FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS T SHARES 2005 2004 (a) 2003 (b)(c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.72 $ 11.00 $ 9.58
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.11(d)(e) 0.16(d) 0.03(d)
Net realized and unrealized
gain (loss) on investments 1.03 1.76 1.39
------------ ------------ ------------
Total from investment operations 1.14 1.92 1.42
------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.10) (0.20) --
In excess of net investment income -- -- --
From net realized gains -- -- --
------------ ------------ ------------
Total distributions declared
to shareholders (0.10) (0.20) --
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 13.76 $ 12.72 $ 11.00
Total return (g) 8.95%(h) 17.54% 14.82%(h)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 1.31%(k) 1.38% 1.50%(k)
Net investment income (loss) (j) 1.60%(k) 1.31% 0.35%(k)
Waiver/reimbursement -- -- --
Portfolio turnover rate 43%(h) 101% 50%(h)
Net assets, end of period (000's) $ 135,959 $ 133,094 $ 127,993
------------ ------------ ------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------------------------
CLASS T SHARES 2002 2001 2000 1999
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.48 $ 17.05 $ 18.28 $ 16.50
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.05) (0.02) (0.02) (0.03)
Net realized and unrealized
gain (loss) on investments (2.50) (1.66) 1.25 2.42
------------ ------------ ------------ ------------
Total from investment operations (2.55) (1.68) 1.23 2.39
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income -- -- (0.01) --
In excess of net investment income -- -- --(f) --
From net realized gains (0.35) (2.89) (2.45) (0.61)
------------ ------------ ------------ ------------
Total distributions declared
to shareholders (0.35) (2.89) (2.46) (0.61)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 9.58 $ 12.48 $ 17.05 $ 18.28
Total return (g) (21.31)% (10.27)%(i) 7.83% 14.63%
------------ ------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 1.41% 1.39% 1.36% 1.37%
Net investment income (loss) (j) (0.38)% (0.17)% (0.10)% (0.16)%
Waiver/reimbursement -- 0.01% -- --
Portfolio turnover rate 99% 127% 72% 75%
Net assets, end of period (000's) $ 123,085 $ 180,435 $ 226,836 $ 258,332
------------ ------------ ------------ ------------
(a) On October 13, 2003, the Liberty Equity Value Fund was renamed the
Columbia Disciplined Value Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 25, 2002, the Galaxy Equity Value Fund, Retail A shares were
redesignated Liberty Equity Value Fund, Class T shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Net investment income per share reflects a special dividend which amounted
to $0.02 per share.
(f) Rounds to less than $0.01 per share.
(g) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(h) Not annualized.
(i) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(j) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(k) Annualized.
100
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA DISCIPLINED VALUE FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS Z SHARES 2005 2004 (a) 2003 (b)(c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.95 $ 11.24 $ 9.75
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.13(d)(e) 0.20(d) 0.08(d)
Net realized and unrealized
gain (loss) on investments 1.05 1.79 1.41
------------ ------------ ------------
Total from investment operations 1.18 1.99 1.49
DECLARED TO SHAREHOLDERS:
From net investment income
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.12) (0.28) --
In excess of net investment income -- -- --
From net realized gains -- -- --
------------ ------------ ------------
Total distributions declared
to shareholders (0.12) (0.28) --
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 14.01 $ 12.95 $ 11.24
Total return (g) 9.11%(h) 17.86% 15.28%(h)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 1.01%(k) 1.06% 1.04%(k)
Net investment income (j) 1.92%(k) 1.62% 0.82%(k)
Waiver/reimbursement -- -- --
Portfolio turnover rate 43%(h) 101% 50%(h)
Net assets, end of period (000's) $ 289,422 $ 283,469 $ 224,137
------------ ------------ ------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------------------------
CLASS Z SHARES 2002 2001 2000 1999
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.65 $ 17.17 $ 18.35 $ 16.51
------------ ------------ ------------ ------------
Net investment income (loss) (0.02) 0.02 0.04 0.03
Net realized and unrealized
gain (loss) on investments (2.53) (1.65) 1.25 2.42
------------ ------------ ------------ ------------
Total from investment operations (2.55) (1.63) 1.29 2.45
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income -- -- (0.02) --
In excess of net investment income -- -- --(f) --
From net realized gains (0.35) (2.89) (2.45) (0.61)
------------ ------------ ------------ ------------
Total distributions declared
to shareholders (0.35) (2.89) (2.47) (0.61)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 9.75 $ 12.65 $ 17.17 $ 18.35
Total return (g) (20.96)% (9.91)% 8.22% 15.04%(i)
------------ ------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 0.98% 1.00% 1.00% 1.02%
Net investment income (j) 0.05% 0.22% 0.26% 0.19%
Waiver/reimbursement -- -- -- 0.01%
Portfolio turnover rate 99% 127% 72% 75%
Net assets, end of period (000's) $ 167,867 $ 152,002 $ 164,864 $ 281,064
------------ ------------ ------------ ------------
(a) On October 13, 2003, the Liberty Equity Value Fund was renamed the
Columbia Disciplined Value Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 25, 2002, the Galaxy Equity Value Fund, Trust shares were
redesignated Liberty Equity Value Fund, Class Z shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Net investment income per share reflects a special dividend which amounted
to $0.02 per share.
(f) Rounds to less than $0.01 per share.
(g) Total return at net asset value assuming all distributions reinvested.
(h) Not annualized.
(i) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(j) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(k) Annualized.
101
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA LARGE CAP CORE FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS A SHARES 2005 2004 (a) 2003 (b)(c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.01 $ 11.22 $ 10.08
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.07(e)(f) --(e)(g) 0.03(e)
Net realized and unrealized
gain (loss) on investments 0.74 0.80 1.16
------------ ------------ ------------
Total from investment operations 0.81 0.80 1.19
------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.07) (0.01) (0.05)
In excess of net investment income -- -- --
From net realized gains (0.35) -- --
------------ ------------ ------------
Total distributions declared
to shareholders (0.42) (0.01) (0.05)
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 12.40 $ 12.01 $ 11.22
Total return (h) 6.74%(i)(j) 7.09%(j) 11.82%(i)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (k) 1.38%(l) 1.35% 1.48%(l)
Net investment income (loss) (k) 1.17%(l) (0.02)% 0.37%(l)
Waiver/reimbursement 0.02%(l) --%(m) --
Portfolio turnover rate 68%(i) 115% 55%(i)
Net assets, end of period (000's) $ 9,574 $ 9,304 $ 7,570
------------ ------------ ------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------------------------
CLASS A SHARES 2002 2001 2000 1999 (d)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.74 $ 16.41 $ 16.00 $ 14.88
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.03(e) 0.02 0.04 0.11(e)
Net realized and unrealized
gain (loss) on investments (2.23) (2.38) 1.34 2.03
------------ ------------ ------------ ------------
Total from investment operations (2.20) (2.36) 1.38 2.14
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.02) (0.03) (0.06) (0.11)
In excess of net investment income -- --(g) -- --
From net realized gains (0.44) (1.28) (0.91) (0.91)
------------ ------------ ------------ ------------
Total distributions declared
to shareholders (0.46) (1.31) (0.97) (1.02)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 10.08 $ 12.74 $ 16.41 $ 16.00
Total return (h) (18.14)%(j) (15.34)%(j) 9.27%(j) 14.81%(j)
------------ ------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (k) 1.28% 1.19% 1.14% 1.15%
Net investment income (loss) (k) 0.25% 0.22% 0.30% 0.66%
Waiver/reimbursement 0.24% 0.03% 0.10% 0.15%
Portfolio turnover rate 13% 19% 42% 20%
Net assets, end of period (000's) $ 15 $ 60 $ 156 $ 150
------------ ------------ ------------ ------------
(a) On October 13, 2003, the Liberty Large Cap Core Fund was renamed the
Columbia Large Cap Core Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On December 9, 2002, the Galaxy Growth & Income Fund, Prime A shares were
redesignated Liberty Large Cap Core Fund, Class A shares.
(d) The Fund began offering Prime A shares on November 1, 1998.
(e) Per share data was calculated using average shares outstanding during the
period.
(f) Net investment income per share reflects a special dividend which amounted
to $0.05 per share.
(g) Rounds to less than $0.01 per share.
(h) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(i) Not annualized.
(j) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(k) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(l) Annualized.
(m) Rounds to less than 0.01%.
102
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA LARGE CAP CORE FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS B SHARES 2005 2004 (a) 2003 (b)(c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.68 $ 10.99 $ 9.90
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.02(e)(f) (0.09)(e) (0.04)(e)
Net realized and unrealized
gain (loss) on investments 0.72 0.78 1.14
------------ ------------ ------------
Total from investment operations 0.74 0.69 1.10
------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.05) -- (0.01)
From net realized gains (0.35) -- --
------------ ------------ ------------
Total distributions declared
to shareholders (0.40) -- (0.01)
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 12.02 $ 11.68 $ 10.99
Total return (g) 6.29%(h)(i) 6.28%(i) 11.12%(h)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 2.13%(k) 2.09% 2.19%(k)
Net investment income (loss) (j) 0.32%(k) (0.76)% (0.38)%(k)
Waiver/reimbursement 0.02%(k) --%(l) --
Portfolio turnover rate 68%(h) 115% 55%(h)
Net assets, end of period (000's) $ 6,032 $ 3,425 $ 1,755
------------ ------------ ------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------------------------
CLASS B SHARES 2002 2001 2000 1999 (d)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.59 $ 16.32 $ 15.97 $ 14.88
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.06)(e) (0.07) (0.07) (0.01)(e)
Net realized and unrealized
gain (loss) on investments (2.19) (2.38) 1.33 2.03
------------ ------------ ------------ ------------
Total from investment operations (2.25) (2.45) 1.26 2.02
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income -- -- -- (0.02)
From net realized gains (0.44) (1.28) (0.91) (0.91)
------------ ------------ ------------ ------------
Total distributions declared
to shareholders (0.44) (1.28) (0.91) (0.93)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 9.90 $ 12.59 $ 16.32 $ 15.97
Total return (g) (18.75)%(i) (15.95)%(i) 8.38%(i) 13.98%(i)
------------ ------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 2.02% 1.96% 1.89% 1.90%
Net investment income (loss) (j) (0.49)% (0.55)% (0.45)% (0.09)%
Waiver/reimbursement 0.02% 0.04% 0.18% 0.27%
Portfolio turnover rate 13% 19% 42% 20%
Net assets, end of period (000's) $ 55 $ 109 $ 129 $ 129
------------ ------------ ------------ ------------
(a) On October 13, 2003, the Liberty Large Cap Core Fund was renamed the
Columbia Large Cap Core Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On December 9, 2002, the Galaxy Growth & Income Fund, Prime B shares were
redesignated Liberty Large Cap Core Fund, Class B shares.
(d) The Fund began offering Prime B shares on November 1, 1998.
(e) Per share data was calculated using average shares outstanding during the
period.
(f) Net investment income per share reflects a special dividend which amounted
to $0.05 per share.
(g) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(h) Not annualized.
(i) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(j) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(k) Annualized.
(l) Rounds to less than 0.01%.
103
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA LARGE CAP CORE FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS C SHARES 2005 2004 (a) 2003 (b)(c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.68 $ 10.99 $ 10.21
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (d) 0.02(e) (0.09) (0.04)
Net realized and unrealized gain on investments 0.73 0.78 0.83
------------ ------------ ------------
Total from investment operations 0.75 0.69 0.79
------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.05) -- --
From net realized gains (0.35) -- (0.01)
------------ ------------ ------------
Total distributions declared to shareholders (0.40) -- --
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 12.03 $ 11.68 $ 10.99
Total return (f) 6.38%(g)(h) 6.28%(h) 7.74%(g)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 2.13%(j) 2.09% 2.18%(j)
Net investment income (loss) (i) 0.40%(j) (0.74)% (0.42)%(j)
Waiver/reimbursement 0.02%(j) --%(k) --
Portfolio turnover rate 68%(g) 115% 55%(g)
Net assets, end of period (000's) $ 517 $ 345 $ 223
------------ ------------ ------------
(a) On October 13, 2003, the Liberty Large Cap Core Fund was renamed the
Columbia Large Cap Core Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) Class C shares were initially offered on December 9, 2002. Per share data
and total return reflect activity from that date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Net investment income per share reflects a special dividend which amounted
to $0.05 per share.
(f) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(g) Not annualized.
(h) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
(k) Rounds to less than 0.01%.
104
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA LARGE CAP CORE FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS G SHARES 2005 2004 (a) 2003 (b)(c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.57 $ 10.89 $ 9.82
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.03(d)(e) (0.09)(d) (0.02)(d)
Net realized and unrealized
gain (loss) on investments 0.71 0.77 1.10
------------ ------------ ------------
Total from investment operations 0.74 0.68 1.08
------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.05) -- (0.01)
From net realized gains (0.35) -- --
------------ ------------ ------------
Total distributions declared
to shareholders (0.40) -- (0.01)
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 11.91 $ 11.57 $ 10.89
Total return (f) 6.37%(g)(h) 6.24%(h) 11.00%(g)(h)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 2.08%(j) 2.09% 2.19%(j)
Net investment income (loss) (i) 0.52%(j) (0.77)% (0.28)%(j)
Waiver/reimbursement 0.02%(j) 0.02% 0.05%(j)
Portfolio turnover rate 68%(g) 115% 55%(g)
Net assets, end of period (000's) $ 13,090 $ 16,419 $ 28,917
------------ ------------ ------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------------------------
CLASS G SHARES 2002 2001 2000 1999
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.50 $ 16.23 $ 15.90 $ 14.83
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.06)(d) (0.09) (0.10) (0.04)(d)
Net realized and unrealized
gain (loss) on investments (2.18) (2.36) 1.34 2.02
------------ ------------ ------------ ------------
Total from investment operations (2.24) (2.45) 1.24 1.98
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income -- -- -- --
From net realized gains (0.44) (1.28) (0.91) (0.91)
------------ ------------ ------------ ------------
Total distributions declared
to shareholders (0.44) (1.28) (0.91) (0.91)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 9.82 $ 12.50 $ 16.23 $ 15.90
Total return (f) (18.80)%(h) (16.11)% 8.35% 13.72%(h)
------------ ------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 2.08% 2.05% 2.04% 2.03%
Net investment income (loss) (i) (0.55)% (0.64)% (0.60)% (0.22)%
Waiver/reimbursement 0.02% -- -- 0.01%
Portfolio turnover rate 13% 19% 42% 20%
Net assets, end of period (000's) $ 31,407 $ 48,512 $ 61,857 $ 62,366
------------ ------------ ------------ ------------
(a) On October 13, 2003, the Liberty Large Cap Core Fund was renamed the
Columbia Large Cap Core Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On December 9, 2002, the Galaxy Growth & Income Fund, Retail B shares were
redesignated Liberty Large Cap Core Fund, Class G shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Net investment income per share reflects a special dividend which amounted
to $0.05 per share.
(f) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(g) Not annualized.
(h) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
105
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA LARGE CAP CORE FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS T SHARES 2005 2004 (a) 2003 (b)(c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.95 $ 11.18 $ 10.05
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.07(d)(e) (0.01)(d) 0.04(d)
Net realized and unrealized
gain (loss) on investments 0.74 0.78 1.14
------------ ------------ ------------
Total from investment operations 0.81 0.77 1.18
------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.07) --(f) (0.05)
In excess of net investment income -- -- --
From net realized gains (0.35) -- --
------------ ------------ ------------
Total distributions declared
to shareholders (0.42) -- (0.05)
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 12.34 $ 11.95 $ 11.18
Total return (g) 6.76%(h)(i) 6.92%(i) 11.76%(h)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 1.43%(k) 1.40% 1.46%(k)
Net investment income (loss) (j) 1.13%(k) (0.07)% 0.45%(k)
Waiver/reimbursement 0.02%(k) --%(l) --
Portfolio turnover rate 68%(h) 115% 55%(h)
Net assets, end of period (000's) $ 176,004 $ 179,310 $ 185,938
------------ ------------ ------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------------------------
CLASS T SHARES 2002 2001 2000 1999
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.70 $ 16.37 $ 15.98 $ 14.87
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.02(d) 0.02 0.02 0.08(d)
Net realized and unrealized
gain (loss) on investments (2.22) (2.39) 1.33 2.02
------------ ------------ ------------ ------------
Total from investment operations (2.20) (2.37) 1.35 2.10
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.01) (0.02) (0.05) (0.08)
In excess of net investment income -- --(f) --(f) --
From net realized gains (0.44) (1.28) (0.91) (0.91)
------------ ------------ ------------ ------------
Total distributions declared
to shareholders (0.45) (1.30) (0.96) (0.99)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 10.05 $ 12.70 $ 16.37 $ 15.98
Total return (g) (18.16)%(i) (15.46)%(i) 9.06%(i) 14.56%(i)
------------ ------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 1.35% 1.34% 1.28% 1.28%
Net investment income (loss) (j) 0.18% 0.07% 0.16% 0.53%
Waiver/reimbursement 0.01% 0.02% 0.09% 0.10%
Portfolio turnover rate 13% 19% 42% 20%
Net assets, end of period (000's) $ 180,269 $ 259,884 $ 217,423 $ 232,110
------------ ------------ ------------ ------------
(a) On October 13, 2003, the Liberty Large Cap Core Fund was renamed the
Columbia Large Cap Core Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On December 9, 2002, the Galaxy Growth & Income Fund, Retail A shares were
redesignated Liberty Large Cap Core Fund, Class T shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Net investment income per share reflects a special dividend which amounted
to $0.05 per share.
(f) Rounds to less than $0.01 per share.
(g) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(h) Not annualized.
(i) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(j) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(k) Annualized.
(l) Rounds to less than 0.01%.
106
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA LARGE CAP CORE FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS Z SHARES 2005 2004 (a) 2003 (b)(c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.05 $ 11.25 $ 10.11
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.08(d)(e) 0.03(d) 0.08(d)
Net realized and unrealized
gain (loss) on investments 0.75 0.79 1.15
------------ ------------ ------------
Total from investment operations 0.83 0.82 1.23
------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.08) (0.02) (0.09)
In excess of net investment income -- -- --
From net realized gains (0.35) -- --
------------ ------------ ------------
Total distributions declared
to shareholders (0.43) (0.02) (0.09)
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 12.45 $ 12.05 $ 11.25
Total return (g) 6.86%(h)(i) 7.28%(i) 12.20%(h)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 1.13%(k) 1.07% 1.03%(k)
Net investment income (j) 1.34%(k) 0.26% 0.89%(k)
Waiver/reimbursement 0.02%(k) --%(l) --
Portfolio turnover rate 68%(h) 115% 55%(h)
Net assets, end of period (000's) $ 358,945 $ 175,124 $ 190,195
------------ ------------ ------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------------------------
CLASS Z SHARES 2002 2001 2000 1999
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.77 $ 16.43 $ 16.02 $ 14.90
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.07(d) 0.06 0.08 0.13(d)
Net realized and unrealized
gain (loss) on investments (2.23) (2.39) 1.32 2.02
------------ ------------ ------------ ------------
Total from investment operations (2.16) (2.33) 1.40 2.15
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.06) (0.05) (0.08) (0.12)
In excess of net investment income -- --(f) --(f) --
From net realized gains (0.44) (1.28) (0.91) (0.91)
------------ ------------ ------------ ------------
Total distributions declared
to shareholders (0.50) (1.33) (0.99) (1.03)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 10.11 $ 12.77 $ 16.43 $ 16.02
Total return (g) (17.85)%(i) (15.12)% 9.38% 14.85%
------------ ------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (j) 0.97% 0.97% 1.00% 1.05%
Net investment income (j) 0.56% 0.44% 0.44% 0.76%
Waiver/reimbursement 0.03% -- -- --
Portfolio turnover rate 13% 19% 42% 20%
Net assets, end of period (000's) $ 340,496 $ 460,302 $ 678,398 $ 309,106
------------ ------------ ------------ ------------
(a) On October 13, 2003, the Liberty Large Cap Core Fund was renamed the
Columbia Large Cap Core Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On December 9, 2002, the Galaxy Growth & Income Fund, Trust shares were
redesignated Liberty Large Cap Core Fund, Class Z shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Net investment income per share reflects a special dividend which amounted
to $0.05 per share.
(f) Rounds to less than $0.01 per share.
(g) Total return at net asset value assuming all distributions reinvested.
(h) Not annualized.
(i) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(j) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(k) Annualized.
(l) Rounds to less than 0.01%.
107
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA SMALL CAP FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS A SHARES 2005 2004 (a) 2003 (b)(c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 17.54 $ 15.30 $ 12.64
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.03)(e) (0.07)(e) (0.04)(e)
Net realized and unrealized
gain (loss) on investments 1.70 2.75 3.35
------------ ------------ ------------
Total from investment operations 1.67 2.68 3.31
------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income -- -- --
From net realized gains (1.07) (0.44) (0.65)
------------ ------------ ------------
Total distributions declared
to shareholders (1.07) (0.44) (0.65)
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 18.14 $ 17.54 $ 15.30
Total return (f) 9.56%(g) 17.73%(h) 27.25%(g)(h)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.13%(j) 1.15% 1.24%(j)
Net investment income (loss) (i) (0.36)%(j) (0.40)% (0.28)%(j)
Waiver/reimbursement -- --%(k) 0.02%(j)
Portfolio turnover rate 10%(g) 26% 19%(g)
Net assets, end of period (000's) $ 212,088 $ 211,502 $ 57,462
------------ ------------ ------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------------------------
CLASS A SHARES 2002 2001 2000 1999(d)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.05 $ 14.33 $ 13.04 $ 13.59
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.03)(e) 0.02(e) 0.05(e) 0.03
Net realized and unrealized
gain (loss) on investments (0.07) 1.61 2.64 0.73
------------ ------------ ------------ ------------
Total from investment operations (0.10) 1.63 2.69 0.76
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income -- (0.04) (0.04) (0.04)
From net realized gains (1.31) (1.87) (1.36) (1.27)
------------ ------------ ------------ ------------
Total distributions declared
to shareholders (1.31) (1.91) (1.40) (1.31)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 12.64 $ 14.05 $ 14.33 $ 13.04
Total return (f) (1.73)%(h) 12.87%(h) 22.26%(h) 5.80%(h)
------------ ------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.29% 1.23% 1.16% 1.18%
Net investment income (loss) (i) (0.19)% 0.17% 0.36% 0.26%
Waiver/reimbursement 0.01% 0.04% 0.16% 0.22%
Portfolio turnover rate 23% 46% 43% 42%
Net assets, end of period (000's) $ 210 $ 168 $ 189 $ 175
------------ ------------ ------------ ------------
(a) On October 13, 2003, the Liberty Small Cap Fund was renamed the Columbia
Small Cap Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Small Cap Value Fund, Prime A shares were
redesignated Liberty Small Cap Fund, Class A shares.
(d) The Fund began offering Prime A shares on November 1, 1998.
(e) Per share data was calculated using average shares outstanding during the
period.
(f) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(g) Not annualized.
(h) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
(k) Rounds to less than 0.01%.
108
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA SMALL CAP FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS B SHARES 2005 2004 (a) 2003 (b)(c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 16.89 $ 14.75 $ 12.31
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.10)(e) (0.19)(e) (0.15)(e)
Net realized and unrealized
gain (loss) on investments 1.64 2.67 3.24
------------ ------------ ------------
Total from investment operations 1.54 2.48 3.09
------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net realized gains (0.95) (0.34) (0.65)
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 17.48 $ 16.89 $ 14.75
Total return (f) 9.13%(g) 16.96%(h) 26.14%(g)(h)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.88%(j) 1.90% 2.10%(j)
Net investment loss (i) (1.11)%(j) (1.15)% (1.14)%(j)
Waiver/reimbursement -- --%(k) 0.02%(j)
Portfolio turnover rate 10%(g) 26% 19%(g)
Net assets, end of period (000's) $ 42,242 $ 40,170 $ 11,122
------------ ------------ ------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------------------------
CLASS B SHARES 2002 2001 2000 1999(d)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.82 $ 14.19 $ 12.98 $ 13.59
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.14)(e) (0.10)(e) (0.05)(e) (0.05)
Net realized and unrealized
gain (loss) on investments (0.06) 1.60 2.62 0.71
------------ ------------ ------------ ------------
Total from investment operations (0.20) 1.50 2.57 0.66
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net realized gains (1.31) (1.87) (1.36) (1.27)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 12.31 $ 13.82 $ 14.19 $ 12.98
Total return (f) (2.55)%(h) 11.91%(h) 21.46%(h) 4.96%(h)
------------ ------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 2.12% 2.08% 1.93% 1.93%
Net investment loss (i) (1.02)% (0.68)% (0.41)% (0.49)%
Waiver/reimbursement 0.01% 0.07% 0.53% 0.56%
Portfolio turnover rate 23% 46% 43% 42%
Net assets, end of period (000's) $ 282 $ 198 $ 170 $ 190
------------ ------------ ------------ ------------
(a) On October 13, 2003, the Liberty Small Cap Fund was renamed the Columbia
Small Cap Fund. .
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Small Cap Value Fund, Prime B shares were
redesignated Liberty Small Cap Fund, Class B shares.
(d) The Fund began offering Prime B shares on November 1, 1998.
(e) Per share data was calculated using average shares outstanding during the
period.
(f) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(g) Not annualized.
(h) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
(k) Rounds to less than 0.01%.
109
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA SMALL CAP FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS C SHARES 2005 2004 (a) 2003 (b)(c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 16.91 $ 14.77 $ 12.55
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (d) (0.10) (0.19) (0.14)
Net realized and unrealized gain on investments 1.64 2.67 3.01
------------ ------------ ------------
Total from investment operations 1.54 2.48 2.87
------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net realized gains (0.95) (0.34) (0.65)
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 17.50 $ 16.91 $ 14.77
Total return (e) 9.12%(f) 16.94%(g) 23.90%(f)(g)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (h) 1.88%(i) 1.90% 2.03%(i)
Net investment loss (h) (1.11)%(i) (1.15)% (1.10)%(i)
Waiver/reimbursement -- --%(j) 0.02%(i)
Portfolio turnover rate 10%(f) 26% 19%(f)
Net assets, end of period (000's) $ 65,002 $ 64,686 $ 12,670
------------ ------------ ------------
(a) On October 13, 2003, the Liberty Small Cap Fund was renamed the Columbia
Small Cap Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) Class C shares were initially offered on November 18, 2002. Per share data
and total return reflect activity from that date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(f) Not annualized.
(g) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
(j) Rounds to less than 0.01%.
110
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA SMALL CAP FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS G SHARES 2005 2004 (a) 2003 (b)(c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 16.75 $ 14.63 $ 12.22
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.09)(e) (0.18)(e) (0.12)(e)
Net realized and unrealized
gain (loss) on investments 1.62 2.64 3.18
------------ ------------ ------------
Total from investment operations 1.53 2.46 3.06
------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net realized gains (0.95) (0.34) (0.65)
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 17.33 $ 16.75 $ 14.63
Total return (f) 9.17%(g) 16.97%(h) 26.09%(g)(h)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.83%(j) 1.87% 2.10%(j)
Net investment loss (i) (1.06)%(j) (1.11)% (1.03)%(j)
Waiver/reimbursement -- --%(k) 0.02%(j)
Portfolio turnover rate 10%(g) 26% 19%(g)
Net assets, end of period (000's) $ 10,952 $ 10,952 $ 10,353
------------ ------------ ------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------------------------
CLASS G SHARES 2002 2001 2000 1999(d)
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.72 $ 14.13 $ 12.96 $ 13.59
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.14)(e) (0.11)(e) (0.10)(e) (0.04)
Net realized and unrealized
gain (loss) on investments (0.05) 1.57 2.63 0.68
------------ ------------ ------------ ------------
Total from investment operations (0.19) 1.46 2.53 0.64
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net realized gains (1.31) (1.87) (1.36) (1.27)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 12.22 $ 13.72 $ 14.13 $ 12.96
Total return (f) (2.49)%(h) 11.73% 21.06%(h) 4.80%(h)
------------ ------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 2.12% 2.21% 2.23% 2.10%
Net investment loss (i) (1.02)% (0.80)% (0.71)% (0.66)%
Waiver/reimbursement 0.01% -- 0.18% 0.78%
Portfolio turnover rate 23% 46% 43% 42%
Net assets, end of period (000's) $ 9,046 $ 5,278 $ 2,838 $ 1,637
------------ ------------ ------------ ------------
(a) On October 13, 2003, the Liberty Small Cap Fund was renamed the Columbia
Small Cap Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Small Cap Value Fund, Retail B shares
were redesignated Liberty Small Cap Fund, Class G shares.
(d) The Fund began offering Retail B shares on November 1, 1998.
(e) Per share data was calculated using average shares outstanding during the
period.
(f) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(g) Not annualized.
(h) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
(k) Rounds to less than 0.01%.
111
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA SMALL CAP FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS T SHARES 2005 2004 (a) 2003 (b)(c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 17.40 $ 15.16 $ 12.55
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.04)(d) (0.08)(d) (0.03)(d)
Net realized and unrealized gain
(loss) on investments 1.68 2.74 3.29
------------ ------------ ------------
Total from investment operations 1.64 2.66 3.26
------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income -- -- --
From net realized gains (1.06) (0.42) (0.65)
------------ ------------ ------------
Total distributions declared
to shareholders (1.06) (0.42) (0.65)
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 17.98 $ 17.40 $ 15.16
Total return (f) 9.46%(g) 17.73%(h) 27.03%(g)(h)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.18%(j) 1.21% 1.34%(j)
Net investment income (loss) (i) (0.41)%(j) (0.45)% (0.26)%(j)
Waiver/reimbursement -- --%(k) 0.02%(j)
Portfolio turnover rate 10%(g) 26% 19%(g)
Net assets, end of period (000's) $ 150,866 $ 146,752 $ 134,455
------------ ------------ ------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------------------------
CLASS T SHARES 2002 2001 2000 1999
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.96 $ 14.25 $ 12.98 $ 13.53
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.03)(d) --(d)(e) 0.01(d) 0.02
Net realized and unrealized gain
(loss) on investments (0.07) 1.59 2.63 0.73
------------ ------------ ------------ ------------
Total from investment operations (0.10) 1.59 2.64 0.75
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income -- (0.01) (0.01) (0.03)
From net realized gains (1.31) (1.87) (1.36) (1.27)
------------ ------------ ------------ ------------
Total distributions declared
to shareholders (1.31) (1.88) (1.37) (1.30)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 12.55 $ 13.96 $ 14.25 $ 12.98
Total return (f) (1.75)%(h) 12.66% 21.96%(h) 5.68%(h)
------------ ------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.33% 1.42% 1.44% 1.31%
Net investment income (loss) (i) (0.23)% (0.02)% 0.08% 0.13%
Waiver/reimbursement 0.01% -- 0.11% 0.28%
Portfolio turnover rate 23% 46% 43% 42%
Net assets, end of period (000's) $ 115,468 $ 100,159 $ 87,457 $ 80,870
------------ ------------ ------------ ------------
(a) On October 13, 2003, the Liberty Small Cap Fund was renamed the Columbia
Small Cap Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Small Cap Value Fund, Retail A shares
were redesignated Liberty Small Cap Fund, Class T shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Rounds to less than $0.01 per share.
(f) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(g) Not annualized.
(h) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
(k) Rounds to less than 0.01%.
112
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA SMALL CAP FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS Z SHARES 2005 2004 (a) 2003 (b)(c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 17.73 $ 15.45 $ 12.75
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.01)(d) (0.03)(d) 0.02(d)
Net realized and unrealized
gain (loss) on investments 1.72 2.80 3.34
------------ ------------ ------------
Total from investment operations 1.71 2.77 3.36
------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income -- -- (0.01)
From net realized gains (1.12) (0.49) (0.65)
------------ ------------ ------------
Total distributions declared
to shareholders (1.12) (0.49) (0.66)
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 18.32 $ 17.73 $ 15.45
Total return (e) 9.66%(f) 18.12%(g) 27.44%(f)(g)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (h) 0.88%(i) 0.90% 0.92%(i)
Net investment income (loss) (h) (0.11)%(i) (0.15)% 0.14%(i)
Waiver/reimbursement -- --%(j) 0.02%(i)
Portfolio turnover rate 10%(f) 26% 19%(f)
Net assets, end of period (000's) $ 1,123,839 $ 1,101,312 $ 789,666
------------ ------------ ------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------------------------
CLASS Z SHARES 2002 2001 2000 1999
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.11 $ 14.38 $ 13.07 $ 13.61
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.03(d) 0.07(d) 0.08(d) 0.05
Net realized and unrealized
gain (loss) on investments (0.07) 1.60 2.65 0.74
------------ ------------ ------------ ------------
Total from investment operations (0.04) 1.67 2.73 0.79
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net investment income (0.01) (0.07) (0.06) (0.06)
From net realized gains (1.31) (1.87) (1.36) (1.27)
------------ ------------ ------------ ------------
Total distributions declared
to shareholders (1.32) (1.94) (1.42) (1.33)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 12.75 $ 14.11 $ 14.38 $ 13.07
Total return (e) (1.26)%(g) 13.20% 22.62% 6.02%
------------ ------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (h) 0.90% 0.92% 0.94% 0.97%
Net investment income (loss) (h) 0.20% 0.48% 0.58% 0.47%
Waiver/reimbursement 0.01% -- -- --
Portfolio turnover rate 23% 46% 43% 42%
Net assets, end of period (000's) $ 485,197 $ 425,687 $ 332,703 $ 255,268
------------ ------------ ------------ ------------
(a) On October 13, 2003, the Liberty Small Cap Fund was renamed the Columbia
Small Cap Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Small Cap Value Fund, Trust shares were
redesignated Liberty Small Cap Fund, Class Z shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Total return at net asset value assuming all distributions reinvested.
(f) Not annualized.
(g) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
(j) Rounds to less than 0.01%.
113
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA SMALL COMPANY EQUITY FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS A SHARES 2005 2004 (a) 2003 (b)(c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.94 $ 14.10 $ 11.74
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (d) (0.09) (0.19) (0.17)
Net realized and unrealized gain on investments 0.84 2.03 2.53
------------ ------------ ------------
Total from investment operations 0.75 1.84 2.36
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 16.69 $ 15.94 $ 14.10
Total return (e) 4.71%(f)(g) 13.05%(g) 20.10%(f)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (h) 1.34%(i) 1.35% 1.62%(i)
Net investment loss (h) (1.09)%(i) (1.16)% (1.42)%(i)
Waiver/reimbursement 0.01%(i) 0.01% --
Portfolio turnover rate 24%(f) 54% 123%(f)
Net assets, end of period (000's) $ 5,040 $ 4,586 $ 384
------------ ------------ ------------
(a) On October 13, 2003, the Liberty Small Company Equity Fund was renamed the
Columbia Small Company Equity Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) Class A shares were initially offered on November 18, 2002. Per share data
and total return reflect activity from that date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Total return at net asset value assuming no initial sales charge or
contingent deferred sales charge.
(f) Not annualized.
(g) Had the Investment Advisor or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
114
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA SMALL COMPANY EQUITY FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS B SHARES 2005 2004 (a) 2003 (b)(c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.88 $ 13.26 $ 11.13
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (d) (0.15) (0.29) (0.25)
Net realized and unrealized gain on investments 0.79 1.91 2.38
------------ ------------ ------------
Total from investment operations 0.64 1.62 2.13
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 15.52 $ 14.88 $ 13.26
Total return (e) 4.30%(f)(g) 12.22%(g) 19.14%(f)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (h) 2.09%(i) 2.09% 2.47%(i)
Net investment loss (h) (1.84)%(i) (1.90)% (2.24)%(i)
Waiver/reimbursement 0.01%(i) 0.01% --
Portfolio turnover rate 24%(f) 54% 123%(f)
Net assets, end of period (000's) $ 2,111 $ 1,826 $ 203
------------ ------------ ------------
(a) On October 13, 2003, the Liberty Small Company Equity Fund was renamed the
Columbia Small Company Equity Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) Class B shares were initially offered on November 18, 2002. Per share data
and total return reflect activity from that date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Total return at net asset value assuming no contingent deferred sales
charge.
(f) Not annualized.
(g) Had the Investment Advisor or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
115
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA SMALL COMPANY EQUITY FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS C SHARES 2005 2004 (a) 2003 (b)(c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.84 $ 13.22 $ 11.13
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (d) (0.15) (0.29) (0.29)
Net realized and unrealized gain on investments 0.78 1.91 2.38
------------ ------------ ------------
Total from investment operations 0.63 1.62 2.09
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 15.47 $ 14.84 $ 13.22
Total return (e) 4.25%(f)(g) 12.25%(g) 18.78%(f)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (h) 2.09%(i) 2.09% 2.84%(i)
Net investment loss (h) (1.84)%(i) (1.90)% (2.59)%(i)
Waiver/reimbursement 0.01%(i) 0.01% --
Portfolio turnover rate 24%(f) 54% 123%(f)
Net assets, end of period (000's) $ 1,020 $ 982 $ 56
------------ ------------ ------------
(a) On October 13, 2003, the Liberty Small Company Equity Fund was renamed the
Columbia Small Company Equity Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) Class C shares were initially offered on November 18, 2002. Per share data
and total return reflect activity from that date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Total return at net asset value assuming no contingent deferred sales
charge.
(f) Not annualized.
(g) Had the Investment Advisor or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(h) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i) Annualized.
116
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA SMALL COMPANY EQUITY FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS G SHARES 2005 2004 (a) 2003 (b)(c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.85 $ 13.24 $ 10.65
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.14)(d) (0.30)(d) (0.25)(d)
Net realized and unrealized
gain (loss) on investments 0.78 1.91 2.84
------------ ------------ ------------
Total from investment operations 0.64 1.61 2.59
------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net realized gains -- -- --
In excess of net realized gains -- -- --
------------ ------------ ------------
Total distributions declared
to shareholders -- -- --
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 15.49 $ 14.85 $ 13.24
Total return (f) 4.31%(g)(h) 12.16%(h) 24.32%(g)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 2.04%(j) 2.16% 2.53%(j)
Net investment loss (i) (1.79)%(j) (1.98)% (2.34)%(j)
Waiver/reimbursement 0.01%(j) 0.01% --
Portfolio turnover rate 24%(g) 54% 123%(g)
Net assets, end of period (000's) $ 4,015 $ 4,565 $ 6,651
------------ ------------ ------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------------------------
CLASS G SHARES 2002 2001 2000 1999
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.30 $ 21.10 $ 15.31 $ 13.39
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.27)(d) (0.25) (0.37) (0.34)
Net realized and unrealized
gain (loss) on investments (3.38) (3.15) 6.16 2.26
------------ ------------ ------------ ------------
Total from investment operations (3.65) (3.40) 5.79 1.92
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net realized gains -- (3.40) -- --
In excess of net realized gains -- --(e) -- --
------------ ------------ ------------ ------------
Total distributions declared
to shareholders -- (3.40) -- --
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 10.65 $ 14.30 $ 21.10 $ 15.31
Total return (f) (25.52)%(h) (17.66)% 37.82%(h) 14.34%(h)
------------ ------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 2.29% 2.25% 2.24% 2.16%
Net investment loss (i) (1.97)% (1.74)% (1.79)% (2.04)%
Waiver/reimbursement 0.03% -- 0.01% 0.16%
Portfolio turnover rate 96% 75% 91% 105%
Net assets, end of period (000's) $ 9,148 $ 15,190 $ 18,936 $ 12,212
------------ ------------ ------------ ------------
(a) On October 13, 2003, the Liberty Small Company Equity Fund was renamed the
Columbia Small Company Equity Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Small Company Equity Fund, Retail B
shares were redesignated Liberty Small Company Equity Fund, Class G
shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Rounds to less than $0.01 per share.
(f) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(g) Not annualized.
(h) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
117
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA SMALL COMPANY EQUITY FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS T SHARES 2005 2004 (a) 2003 (b)(c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.92 $ 14.09 $ 11.23
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.10)(d) (0.20)(d) (0.15)(d)
Net realized and unrealized
gain (loss) on investments 0.84 2.03 3.01
------------ ------------ ------------
Total from investment operations 0.74 1.83 2.86
------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net realized gains -- -- --
In excess of net realized gains -- -- --
------------ ------------ ------------
Total distributions declared
to shareholders -- -- --
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 16.66 $ 15.92 $ 14.09
Total return (f) 4.65%(g)(h) 12.99%(h) 25.47%(g)(h)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.39%(j) 1.41% 1.54%(j)
Net investment loss (i) (1.14)%(j) (1.23)% (1.35)%(j)
Waiver/reimbursement 0.01%(j) 0.02% 0.05%(j)
Portfolio turnover rate 24%(g) 54% 123%(g)
Net assets, end of period (000's) $ 67,237 $ 68,359 $ 66,780
------------ ------------ ------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------------------------
CLASS T SHARES 2002 2001 2000 1999
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.95 $ 21.75 $ 15.66 $ 13.63
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.16)(d) (0.17) (0.22) (0.23)
Net realized and unrealized
gain (loss) on investments (3.56) (3.23) 6.31 2.26
------------ ------------ ------------ ------------
Total from investment operations (3.72) (3.40) 6.09 2.03
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net realized gains -- (3.40) -- --
In excess of net realized gains -- --(e) -- --
------------ ------------ ------------ ------------
Total distributions declared
to shareholders -- (3.40) -- --
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 11.23 $ 14.95 $ 21.75 $ 15.66
Total return (f) (24.88)%(h) (17.03)% 38.89% 14.89%(h)
------------ ------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.46% 1.42% 1.44% 1.53%
Net investment loss (i) (1.14)% (0.91)% (0.99)% (1.41)%
Waiver/reimbursement 0.03% -- -- 0.01%
Portfolio turnover rate 96% 75% 91% 105%
Net assets, end of period (000's) $ 57,537 $ 84,332 $ 125,427 $ 87,921
------------ ------------ ------------ ------------
(a) On October 13, 2003, the Liberty Small Company Equity Fund was renamed the
Columbia Small Company Equity Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Small Company Equity Fund, Retail A
shares were redesignated Liberty Small Company Equity Fund, Class T
shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Rounds to less than $0.01 per share.
(f) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(g) Not annualized.
(h) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
118
FINANCIAL HIGHLIGHTS ___________________________________________________________
COLUMBIA SMALL COMPANY EQUITY FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS Z SHARES 2005 2004 (a) 2003 (b)(c)
------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 16.84 $ 14.85 $ 11.79
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.08)(d) (0.15)(d) (0.11)(d)
Net realized and unrealized
gain (loss) on investments 0.88 2.14 3.17
------------ ------------ ------------
Total from investment operations 0.80 1.99 3.06
------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net realized gains -- -- --
In excess of net realized gains -- -- --
------------ ------------ ------------
Total distributions declared
to shareholders -- -- --
------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 17.64 $ 16.84 $ 14.85
Total return (f) 4.75%(g)(h) 13.40%(h) 25.95%(g)
------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.09%(j) 1.08% 1.12%(j)
Net investment loss (i) (0.84)%(j) (0.90)% (0.93)%(j)
Waiver/reimbursement 0.01%(j) 0.01% --
Portfolio turnover rate 24%(g) 54% 123%(g)
Net assets, end of period (000's) $ 283,476 $ 300,109 $ 293,603
------------ ------------ ------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------------------------
CLASS Z SHARES 2002 2001 2000 1999
------------ ------------ ------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.63 $ 22.48 $ 16.13 $ 13.96
------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss (0.11)(d) (0.10) (0.12) (0.16)
Net realized and unrealized
gain (loss) on investments (3.73) (3.35) 6.47 2.33
------------ ------------ ------------ ------------
Total from investment operations (3.84) (3.45) 6.35 2.17
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:
From net realized gains -- (3.40) -- --
In excess of net realized gains -- --(e) -- --
------------ ------------ ------------ ------------
Total distributions declared
to shareholders -- (3.40) -- --
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 11.79 $ 15.63 $ 22.48 $ 16.13
Total return (f) (24.62)%(h) (16.63)% 39.43% 15.54%
------------ ------------ ------------ ------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (i) 1.04% 1.03% 1.03% 1.12%
Net investment loss (i) (0.72)% (0.52)% (0.58)% (1.00)%
Waiver/reimbursement 0.01% -- -- --
Portfolio turnover rate 96% 75% 91% 105%
Net assets, end of period (000's) $ 217,377 $ 318,414 $ 422,579 $ 233,326
------------ ------------ ------------ ------------
(a) On October 13, 2003, the Liberty Small Company Equity Fund was renamed the
Columbia Small Company Equity Fund.
(b) The Fund changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy Small Company Equity Fund, Trust shares
were redesignated Liberty Small Company Equity Fund, Class Z shares.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Rounds to less than $0.01 per share.
(f) Total return at net asset value assuming all distributions reinvested.
(g) Not annualized.
(h) Had the Investment Advisor and/or any of its affiliates not waived or
reimbursed a portion of expenses, total return would have been reduced.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
119
BOARD CONSIDERATION AND APPROVAL OF INVESTMENT ADVISORY AGREEMENTS _____________
COLUMBIA EQUITY FUNDS
Section 15(c) of the Investment Company Act of 1940 (the "1940 Act") requires
that the Board of Trustees/Directors (the "Board") of the Columbia Funds (the
"Funds"), including a majority of the Trustees and Directors (collectively, the
"Trustees") who are not "interested persons" of the Trusts, as defined in the
1940 Act (the "Independent Trustees"), annually review and approve the terms of
the Funds' investment advisory agreements. During the most recent six months
covered by this report, the Board reviewed and approved the management contracts
("Advisory Agreements") with Columbia Management Advisors, Inc. ("CMA") for the
Funds.
At meetings held on September 23, 2004 and October 12, 2004, the Advisory Fees
and Expenses Committee (the "Committee") of the Board considered the factors
described below relating to the selection of CMA and the approval of the
Advisory Agreements. At a meeting held on October 13, 2004, the Board, including
the Independent Trustees (who were advised by their independent legal counsel),
considered these factors and reached the conclusions described below.
NATURE, EXTENT AND QUALITY OF SERVICES
The Board considered information regarding the nature, extent and quality of
services that CMA provides to the Funds under the Advisory Agreements. CMA
provided the most recent investment adviser registration form ("Form ADV") and
code of ethics for CMA to the Board. The Board reviewed information on the
status of Securities and Exchange Commission ("SEC") and New York Attorney
General ("NYAG") proceedings against CMA and certain of its affiliates,
including the agreement in principle entered into with the SEC and the NYAG on
March 15, 2004 to settle civil complaints filed by the SEC and the NYAG relating
to trading activity in mutual fund shares. 1
The Board evaluated the ability of CMA, including its resources, reputation and
other attributes, to attract and retain highly qualified research, advisory and
supervisory investment professionals. The Board considered information regarding
CMA's compensation program for its personnel involved in the management of the
Funds.
Based on these considerations and other factors, including those referenced
below, the Board concluded that they were generally satisfied with the nature,
extent and quality of the investment advisory services provided to each of the
Funds by CMA.
FUND PERFORMANCE AND EXPENSES
CMA provided the Board with relative performance and expense information for the
Funds in a report prepared by Lipper Inc. ("Lipper") an independent provider of
investment company data. The Board considered the total return performance
information, which included the ranking of each Fund within a performance
universe made up of funds with the same Lipper investment classification and
objective (the "Performance Universe") by total return for one-year, three-year,
five-year, ten-year or life of fund periods, as applicable. They also considered
each Fund's performance in comparison to the performance results of a group (the
"Performance Peer Group") of funds selected by Lipper based on similarities in
fund type (e.g. open-end), investment classification and objective, asset size,
load type and 12b-1/service fees and other expense features, and to the
performance results of the Fund's benchmark index. The Board reviewed a
description of Lipper's methodology for selecting the mutual funds in each
Fund's Performance Peer Group and Performance Universe.
The Board considered statistical information regarding each Fund's total
expenses and certain components thereof, including management fees (both actual
management fees based on expenses for advisory and administrative fees including
any reductions for fee waivers and expense reimbursements as well as contractual
management fees that are computed for a hypothetical level of assets), actual
non-management expenses, and fee waivers/caps and expense reimbursements. They
also considered comparisons of these expenses to the expense information for
funds within a group (the "Expense Peer Group") selected by Lipper based on
similarities in fund type (e.g. open-end), investment
1 On February 9, 2005, CMA and its affiliate, Columbia Funds Distributor,
Inc., entered into settlement agreements with the SEC and the NYAG that
contain substantially the terms outlined in the agreements in principle.
120
________________________________________________________________________________
COLUMBIA EQUITY FUNDS
classification and objective, asset size, load type and 12b-1/service fees and
other expense features (but which, unlike the Performance Peer Group, may
include funds with several different investment classifications and objectives)
and an expense universe ("Expense Universe") selected by Lipper based on the
criteria for determining the Expense Peer Group other than asset size. The
expense information in the Lipper report took into account all existing fee
waivers and expense reimbursements as well as all voluntary advisory fee
reductions applicable to certain Funds that were being proposed by management in
order to reduce the aggregate advisory fees received from mutual funds advised
by CMA and Banc of America Capital Management, LLC ("BACAP") by $32 million per
year for five years as contemplated by the agreement in principle with the NYAG.
The Committee also considered the projected impact on expenses of these Funds
resulting from the overall cost reductions that management anticipated would
result from the proposed shift to a common group of service providers for
transfer agency, fund accounting and custody services for mutual funds advised
by Bank of America affiliates.
The Boards also considered information is the Lipper report that ranked each
Fund based on (i) each Fund's one-year performance and actual advisory fees,
(ii) each Fund's one-year performance and total expenses and (iii) each Fund's
3-year performance and total expenses.
Based on these comparisons and expense and performance rankings of each Fund in
the Lipper Report, CMA determined an overall score for each Fund. The Committee
and the Board also considered projected savings to the Funds that would result
from certain modifications in soft dollar arrangements.
The Committee also considered more detailed information relating to certain
Funds that were highlighted for additional review based upon the fact that they
ranked poorly in terms of overall expense or management fees, maintained poor
performance or demonstrated a combination of below average to poor performance
while maintaining below average or poor expense rankings. At its September 23,
2004 meeting, the Committee discussed these Funds with management and in
executive session. The Committee requested additional information from
management regarding the cause(s) of the below-average relative performance of
these Funds, any remedial actions management recommended to improve performance
and the general standards for review of portfolio manager performance. At its
October 12, 2004 meeting, the Committee considered additional information
provided by management regarding these Funds. The Board also considered
management's proposal to merge or liquidate some of these Funds.
Based on these considerations and other factors, the Board concluded that the
overall performance and expense results supported the approval of the Advisory
Agreements for each Fund.
INVESTMENT ADVISORY FEE RATES
The Board reviewed and considered the proposed contractual investment advisory
fee rates (the "Advisory Agreement Rates") payable by the Funds to CMA for
investment advisory services. In addition, the Board reviewed and considered the
existing and proposed fee waiver and reimbursement arrangements applicable to
the Advisory Agreement Rates and considered the Advisory Agreement Rates after
taking the fee waivers and reimbursements into account (the "Net Advisory
Rates"). At previous meetings, the Committee had separately considered
management's proposal to reduce annual investment advisory fees for certain
Funds under the NYAG agreement in principle and the impact of these reductions
on each affected Fund. Additionally, the Board considered information comparing
the Advisory Agreement Rates and Net Advisory Rates (both on a stand-alone basis
and on a combined basis with the Funds' administration fee rates) with those of
the other funds in the Expense Peer Group. The Board concluded that the Advisory
Agreement Rates and Net Advisory Rates represented reasonable compensation to
CMA, in light of the nature, extent and quality of the services provided to the
Funds, the fees paid and expenses borne by comparable funds and the costs that
CMA incurs in providing these services to the Funds.
121
________________________________________________________________________________
COLUMBIA EQUITY FUNDS
PROFITABILITY
The Board considered a detailed profitability analysis of CMA based on 2003
financial statements, adjusted to take into account advisory fee reductions
implemented in November 2003 and proposed reductions under the NYAG proposed
settlement. The Board concluded that, in light of the costs of providing
investment management and other services to the Funds, the profits and other
ancillary benefits that CMA and its affiliates received for providing these
services to the Funds were not unreasonable.
ECONOMIES OF SCALE
In evaluating potential economies of scale, the Board considered CMA's proposal
to implement a standardized breakpoint schedule for combined advisory and
administrative fees for the majority of the funds of the same general asset type
within the Columbia Funds complex (other than index and closed-end funds). The
Board noted that the standardization of the breakpoints would not result in a
fee increase for any Fund. The Board concluded that any actual or potential
economies of scale are, or will be, shared fairly with Fund shareholders,
including most particularly through Advisory Agreement Rate breakpoints at
current and reasonably foreseeable asset levels.
INFORMATION ABOUT SERVICES TO OTHER CLIENTS
In evaluating the proposed fee reductions under the NYAG agreement in principle,
the Board considered information regarding the advisory fee rates charged by
BACAP for the Nations Funds. Members of the Committee and the Board had also
separately reviewed advisory fee rates for variable insurance product funds
advised by CMA. This information assisted the Board in assessing the
reasonableness of fees paid under the Advisory Agreements in light of the
nature, extent and quality of services provided under those agreements.
OTHER BENEFITS TO CMA
The Board considered information regarding potential "fall-out" or ancillary
benefits received by CMA and its affiliates as a result of their relationship
with the Funds. These benefits could include benefits directly attributable to
the relationship of CMA with the Funds (such as soft dollar credits) and
benefits potentially derived from an increase in the business of CMA as a result
of its relationship with the Funds (such as the ability to market to
shareholders other financial products offered by CMA and its affiliates).
OTHER FACTORS AND BROADER REVIEW
The Board reviews detailed materials provided by CMA annually as part of the
approval process under Section 15(c) of the 1940 Act. The Board also regularly
reviews and assesses the quality of the services that the Funds receive
throughout the year. In this regard, the Board reviews information provided by
CMA at their regular meetings, including, among other things, a detailed
portfolio review, and detailed fund performance reports. In addition, the Board
interviews the heads of each investment area at each regular meeting of the
Board and selected portfolio managers of the Funds at various times throughout
the year. After considering the above-described factors and based on the
deliberations and their evaluation of the information provided to them, the
Board concluded that re-approval of the Advisory Agreements for each of the
Funds was in the best interest of the Funds and their shareholders. Accordingly,
the Board unanimously approved the Advisory Agreements.
122
COLUMBIA FUNDS _________________________________________________________________
COLUMBIA EQUITY FUNDS
---------------------------------------------------
LARGE GROWTH Columbia Growth Stock
Columbia Large Cap Growth
Columbia Tax-Managed Growth
Columbia Tax-Managed Growth II*
Columbia Young Investor
---------------------------------------------------
LARGE VALUE Columbia Disciplined Value
Columbia Growth & Income
Columbia Large Cap Core
Columbia Tax-Managed Value*
---------------------------------------------------
MIDCAP GROWTH Columbia Acorn Select
Columbia Mid Cap Growth
---------------------------------------------------
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
Columbia Thermostat
---------------------------------------------------
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
123
________________________________________________________________________________
COLUMBIA EQUITY FUNDS
---------------------------------------------------
SINGLE STATE TAX EXEMPT Columbia California Tax-Exempt
Columbia Connecticut Intermediate Municipal Bond
Columbia Connecticut Tax-Exempt
Columbia Florida Intermediate Municipal Bond*
Columbia Massachusetts Intermediate Municipal Bond
Columbia Massachusetts Tax-Exempt
Columbia New Jersey Intermediate Municipal Bond
Columbia New York Intermediate Municipal Bond
Columbia New York Tax-Exempt
Columbia Oregon Municipal Bond
Columbia Pennsylvania Intermediate Municipal Bond*
Columbia Rhode Island Intermediate Municipal Bond
---------------------------------------------------
MONEY MARKET Columbia Money Market
Columbia Municipal Money Market
---------------------------------------------------
INTERNATIONAL/GLOBAL Columbia Acorn International
Columbia Acorn International Select
Columbia Global Equity
Columbia International Stock
Columbia Newport Greater China
Columbia Newport Tiger*
---------------------------------------------------
INDEX Columbia Large Company Index*
Columbia Small Company Index*
Columbia U.S. Treasury Index
* The fund will be closed to new investments after
the close of business on April 29, 2005. The fund's
trustees have approved the merger, which is
scheduled to occur during September and October,
pending shareholder approval.
** The fund will be closed to new investments after
the close of business on April 29, 2005. The fund's
trustees have approved the liquidation, which is
scheduled to occur during September, pending
shareholder approval.
PLEASE CONSIDER THE INVESTMENT OBJECTIVES, RISKS,
CHARGES AND EXPENSES OF A MUTUAL FUND CAREFULLY
BEFORE INVESTING. CONTACT US AT 800-345-6611 FOR A
PROSPECTUS WHICH CONTAINS THIS AND OTHER IMPORTANT
INFORMATION ABOUT THE FUND. READ IT CAREFULLY
BEFORE YOU INVEST.
For complete product information on any Columbia
fund, visit our website at www.columbiafunds.com.
Columbia Management Group and Columbia Management
refer collectively to the various investment
advisory subsidiaries of Columbia Management Group,
including Columbia Management Advisors, Inc., the
registered investment advisor, and Columbia Funds
Distributor, Inc.
124
IMPORTANT INFORMATION ABOUT THIS REPORT ________________________________________
COLUMBIA EQUITY FUNDS
TRANSFER AGENT The funds mail one shareholder report to
Columbia Funds Services, Inc. each shareholder address. If you would
P.O. Box 8081 like more than one report, please call
Boston MA 02266-8081 shareholder services at 800-345-6611 and
800-345-6611 additional reports will be sent to you.
This report has been prepared for
shareholders of Columbia Equity Funds.
DISTRIBUTOR This report may also be used as sales
Columbia Funds Distributor, Inc. literature when preceded or accompanied by
One Financial Center the current prospectus which provides
Boston MA 02111 details of sales charges, investment
objectives and operating policies of the
funds and with the most recent copy of the
Columbia Funds Performance Update.
INVESTMENT ADVISOR
Columbia Management Advisors, Inc. A description of the policies and
100 Federal Street procedures that the fund uses to determine
Boston MA 02110 how to vote proxies and a copy of the
fund's voting record are available (i) at
www.columbiamanagement.com; (ii) on the
Securities and Exchange Commission's
website at www.sec.gov, and (iii) without
charge, upon request, by calling
800-368-0346. Information regarding how
the fund voted proxies relating to
portfolio securities during the 12-month
period ended June 30, 2004 is available
from the SEC's website. Information
regarding how the fund voted proxies
relating to portfolio securities is also
available from the fund's website.
The fund files a complete schedule of
portfolio holdings with the SEC for the
first and third quarters of each fiscal
year on Form N-Q. The fund's Form N-Q is
available on the SEC's website at
www.sec.gov and may be reviewed and copied
at the SEC's Public Reference Room in
Washington, D.C. Information on the
operation of the Public Reference Room may
be obtained by calling 1-800-SEC-0330.
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.
125
- --------------------------------------------------------------------------------
[PHOTO OF EDELIVERY] Help your fund reduce printing and postage
costs! Elect to get your shareholder
reports by electronic delivery. With
Columbia's eDelivery program, you receive
an e-mail message when your shareholder
report becomes available online. If your
fund account is registered with Columbia
Funds, you can sign up quickly and easily
on our website at www.columbiafunds.com.
Please note -- if you own your fund shares
through a financial institution, contact
the institution to see if it offers
electronic delivery. If you own your fund
shares through a retirement plan,
electronic delivery may not be available
to you.
- --------------------------------------------------------------------------------
COLUMBIA EQUITY FUNDS SEMIANNUAL REPORT, MARCH 31, 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
G-03/051V-0405 (05/05) 05/5571
<Page>
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.
<Page>
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 XI
--------------------------------------------------------------------
By (Signature and Title) /S/ Christopher L. Wilson
--------------------------------------------------------
Christopher L. Wilson, President
Date May 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 May 27, 2005
----------------------------------------------------------------------------
By (Signature and Title) /S/ J. Kevin Connaughton
--------------------------------------------------------
J. Kevin Connaughton, Treasurer
Date May 27, 2005
----------------------------------------------------------------------------