N-CSR
COLUMBIA FUNDS TRUST VI
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 811-6529
--------
Columbia Funds Trust VI
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
One Financial Center, Boston, Massachusetts 02111
- -------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Russell Kane, Esq.
Columbia Management Group, Inc.
One Financial Center
Boston, MA 02111
- -------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: 1-617-772-3363
--------------
Date of fiscal year end: 08/31/2003
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Date of reporting period: 08/31/2003
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270,30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C, ss. 3507.
Item 1. Report of Stockholders
[PHOTO]
Columbia Newport
Asia Pacific Fund
Annual Report
August 31, 2003
We are now Columbia Funds!
INSIDE -- Management's discussion of the changes effective as of October 13,
2003.
President's Message
[PHOTO]
Dear Shareholder:
As you know, the fund you invest in has long been associated with a larger
investment management organization. In the 1990s, it was part of Liberty
Financial, whose asset management companies included Colonial, Stein Roe and
Newport. In 2001, your fund became part of the asset management division of
FleetBoston Financial Corp., which you know as Columbia Management Group (CMG).
Earlier this year, six of the asset management firms that were brought together
under the CMG umbrella were consolidated and renamed Columbia Management
Advisors, Inc. On October 13, 2003, we took the natural next step forward in
this process by changing the name of our funds from Liberty to Columbia. For
example, Liberty Newport Asia Pacific Fund was changed to Columbia Newport Asia
Pacific Fund. We have also modified certain fund names that exist under both
the Liberty and Columbia brands.
As a result of these fund name changes, most fund CUSIP numbers have changed.
(A CUSIP is a unique identification number assigned to each class of a mutual
fund by the Committee on Uniform Security Identification Procedures.) However,
ticker symbols have not changed. A list of new fund names and other information
related to these changes are available online at www.columbiafunds.com, our new
website address.
A consolidated identity
The consolidation of our management under a single organization and the
renaming of our funds are part of a larger effort to create a consistent
identity. Having taken these additional steps, we believe it will be easier for
our shareholders to do business with us. All funds will be listed under the
"Columbia" name in the mutual fund listings section of your newspaper (as long
as they meet the newspaper's listing requirements). All service inquiries will
be handled by Columbia Funds Services, Inc. the new name of our shareholder
service organization.
What will not change is our commitment to our shareholders. We remain committed
to providing the best possible customer service and to offering a wide variety
of mutual funds to help you pursue your long-term financial goals. Should you
have questions, please call shareholder services at 800-345-6611 or visit our
website at its new address www.columbiafunds.com.
In the report that follows, your portfolio manager talks in depth about
investment strategies and other factors that affected your fund's performance
during the period. We encourage you to read the report carefully.
As always, we thank you for your business and we look forward to continuing to
serve your investment needs.
Sincerely,
/s/ Joseph R. Palumbo
Joseph R. Palombo
President
Net asset value per share as of 08/31/03 ($)
Class A 14.48
Class B 13.99
Class C 13.98
Class Z 14.60
Past performance cannot predict future investment results. Returns and value of
an investment will vary, resulting in a gain or a loss on sale. All results
shown assume reinvestment of distributions.
[LOGO] Not FDIC Insured May Lose Value
No Bank Guarantee
Economic and market conditions change frequently. There is no assurance that
the trends described in this report will continue or commence.
Performance Information
Value of a $10,000 investment 8/19/98 - 8/31/03
Performance of a $10,000 investment 8/19/98 - 8/31/03 ($)
without with
sales sales
charge charge
----------------------
Class A 15,896 14,982
----------------------
Class B 15,328 15,228
----------------------
Class C 15,318 15,318
----------------------
Class Z 16,028 n/a
[CHART]
Liberty Newport Liberty Newport
Asia Pacific - A Asia Pacific - A MSCI
Without With Sales AC Asia
Sales Charge Charge Pacific Free
---------------- ---------------- ------------
$10,000 $ 9,425
8/20/1998 - 8/31/1998 9,470 8,925 $10,000
9/01/1998 - 9/30/1998 10,200 9,614 10,038
10/01/1998 - 10/31/1998 12,130 11,433 11,744
11/01/1998 - 11/30/1998 12,870 12,130 12,387
12/01/1998 - 12/31/1998 13,297 12,533 12,768
1/01/1999 - 1/31/1999 12,914 12,172 12,871
2/01/1999 - 2/28/1999 13,105 12,352 12,596
3/01/1999 - 3/31/1999 14,960 14,100 14,171
4/01/1999 - 4/30/1999 17,177 16,189 15,235
5/01/1999 - 5/31/1999 16,299 15,362 14,446
6/01/1999 - 6/30/1999 19,161 18,059 15,959
7/01/1999 - 7/31/1999 20,654 19,466 16,951
8/01/1999 - 8/31/1999 21,459 20,225 16,888
9/01/1999 - 9/30/1999 21,702 20,454 17,368
10/01/1999 - 10/31/1999 22,709 21,403 18,000
11/01/1999 - 11/30/1999 26,379 24,862 18,965
12/01/1999 - 12/31/1999 29,444 27,751 20,213
1/01/2000 - 1/31/2000 27,562 25,977 19,501
2/01/2000 - 2/29/2000 27,871 26,268 19,020
3/01/2000 - 3/31/2000 28,933 27,269 20,239
4/01/2000 - 4/30/2000 26,540 25,014 18,713
5/01/2000 - 5/31/2000 24,775 23,351 17,643
6/01/2000 - 6/30/2000 26,093 24,593 18,876
7/01/2000 - 7/31/2000 24,478 23,071 17,115
8/01/2000 - 8/31/2000 25,222 23,772 17,833
9/01/2000 - 9/30/2000 23,628 22,270 16,674
10/01/2000 - 10/31/2000 21,599 20,357 15,622
11/01/2000 - 11/30/2000 20,525 19,345 15,058
12/01/2000 - 12/31/2000 20,043 18,890 14,465
1/01/2001 - 1/31/2001 20,921 19,718 14,854
2/01/2001 - 2/28/2001 19,527 18,404 14,177
3/01/2001 - 3/31/2001 17,991 16,956 13,364
4/01/2001 - 4/30/2001 19,144 18,043 14,102
5/01/2001 - 5/31/2001 19,012 17,918 14,077
6/01/2001 - 6/30/2001 18,112 17,071 13,469
7/01/2001 - 7/31/2001 17,047 16,067 12,616
8/01/2001 - 8/31/2001 16,214 15,281 12,367
9/01/2001 - 9/30/2001 14,129 13,316 10,982
10/01/2001 - 10/31/2001 14,656 13,813 11,198
11/01/2001 - 11/30/2001 15,643 14,744 11,732
12/01/2001 - 12/31/2001 15,709 14,806 11,467
1/01/2002 - 1/31/2002 15,489 14,599 11,040
2/01/2002 - 2/28/2002 15,412 14,526 11,342
3/01/2002 - 3/31/2002 16,279 15,343 12,001
4/01/2002 - 4/30/2002 16,599 15,644 12,438
5/01/2002 - 5/31/2002 16,620 15,664 12,925
6/01/2002 - 6/30/2002 15,884 14,971 12,268
7/01/2002 - 7/31/2002 14,809 13,957 11,494
8/01/2002 - 8/31/2002 14,644 13,802 11,408
9/01/2002 - 9/30/2002 13,502 12,726 10,718
10/01/2002 - 10/31/2002 13,776 12,984 10,434
11/01/2002 - 11/30/2002 14,248 13,429 10,868
12/01/2002 - 12/31/2002 13,700 12,912 10,511
1/01/2003 - 1/31/2003 13,216 12,456 10,295
2/01/2003 - 2/28/2003 12,974 12,228 10,212
3/01/2003 - 3/31/2003 12,699 11,969 9,877
4/01/2003 - 4/30/2003 12,732 12,000 10,024
5/01/2003 - 5/31/2003 13,424 12,652 10,579
6/01/2003 - 6/30/2003 14,126 13,314 11,277
7/01/2003 - 7/31/2003 14,839 13,986 11,771
8/01/2003 - 8/31/2003 15,896 14,982 12,786
Mutual fund performance changes over time. Please visit www.columbiafunds.com
for daily performance updates.
Past performance is no guarantee of future investment results. The principal
value and investment returns will fluctuate, resulting in a gain or loss on
sale. The Morgan Stanley Capital International (MSCI) All Country (AC) Asia
Pacific Free Index is an unmanaged index that tracks the performance of stock
traded on stock exchanges in Pacific Basin countries, including Australia, Hong
Kong, India, Indonesia, Japan, Malaysia, New Zealand, the People's Republic of
China, the Philippines, Singapore, South Korea, Taiwan and Thailand. 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 August 31, 1998.
Average annual total return as of 08/31/03 (%)
Share class A B C Z
Inception 8/19/98 8/19/98 8/19/98 2/1/01
-----------------------------------------------------------------
without with without with without with without
sales sales sales sales sales sales sales
charge charge charge charge charge charge charge
-----------------------------------------------------------------
2-month
(cumulative) 12.51 6.04 12.37 7.37 12.38 11.38 12.57
-----------------------------------------------------------------
1-year 8.55 2.30 7.78 2.78 7.79 6.79 8.79
-----------------------------------------------------------------
5-year 10.91 9.61 10.11 9.84 10.10 10.10 11.10
-----------------------------------------------------------------
Life 9.65 8.36 8.86 8.72 8.84 8.84 9.83
-----------------------------------------------------------------
Average annual total return as of 06/30/03 (%)
Share class A B C Z
-----------------------------------------------------------------
without with without with without with without
sales sales sales sales sales sales sales
charge charge charge charge charge charge charge
-----------------------------------------------------------------
2-month
(cumulative) 10.95 4.57 10.77 5.77 10.77 9.77 10.95
-----------------------------------------------------------------
1-year -11.06 -16.17 -11.64 -16.06 -11.71 -12.59 -10.86
-----------------------------------------------------------------
Life 7.37 6.07 6.59 6.27 6.58 6.58 7.54
-----------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal
value and investment returns will fluctuate, resulting in a gain or loss on
sale. All results shown assume reinvestment of distributions, if any. 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 "with sales charge"
returns include the maximum 5.75% sales charge for class A shares, the
appropriate maximum class B contingent deferred sales charge for the holding
period after purchase as follows: first year - 5%, second year - 4%, third year
- - 3%, fourth year - 3%, fifth year - 2%, sixth year - 1%, thereafter - 0%, and
the class C contingent deferred sales charge of 1% for the first year only.
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 Z share (newer class shares) performance information includes returns of
the fund's class A shares (the oldest existing fund class) for periods prior to
the inception date of the newer class shares. Returns are not restated to
reflect any expense differential, e.g., 12b-1 fees, between class A and the
newer class shares. Had the expense differential been reflected, the returns
for the period prior to the inception of class Z shares would have been higher.
1
Portfolio Managers' Report
Top 5 countries as of 08/31/03 (%)
Japan 47.1
Australia 9.9
Hong Kong 9.0
India 7.1
Taiwan 5.9
Calculated as a percentage of total investments.
Top 10 holdings as of 08/31/03 (%)
NTT DoCoMo 3.7
Taiwan Semiconductor Manufacturing 3.3
Samsung Electronics 2.5
Honda Motor 2.5
Hutchison Whampoa 2.4
Housing Development Finance 2.3
Matsushita Electric 2.3
Canon 2.3
China Mobile 2.2
Infosys Technologies 2.1
Top 10 holdings are calculated as a percentage of net assets.
Since the fund is actively managed, there can be no guarantee the fund will
continue to maintain the same country weightings or portfolio holdings in
the future.
Bought
--------------------------------
Nikko Cordial Corp. (0.5% of net assets)
Citigroup has a stake in this brokerage house, which has
reduced costs over the past few years. We expect the
company to do well as the Japanese economy and equity
markets recover.
Sold
--------------------------------
Hong Kong & China Gas Co., Ltd.
(0.2% of net assets)
While earnings in its Hong Kong business are strong, it will
be a long time before the company's investments in
mainland China pay off. Therefore, we reduced this position.
The Board of Trustees for Columbia Newport Asia Pacific Fund approved the
change of the fund's fiscal year end from June 30 to August 31. As a result,
this report covers the two-month period since the last annual report. The next
report you receive will be a report for the six-month period through February
2004.
For the two-month period ended August 31, 2003, class A shares of Columbia
Newport Asia Pacific Fund returned 12.51% without sales charge. The fund fell
behind its benchmark, the MSCI AC Asia Pacific Free Index, which returned
13.38% for the same period. The fund was underweight in Japan relative to the
MSCI Index, which contributed to its slight underperformance.
A significant commitment to Japan
Although the fund had a below-average stake in Japan, it represented our
largest country position at 47.1% of total investments. By comparison, Japan
represented 61.5% of the MSCI AC Asia Pacific Free Index at the end of the
period. Over the two months covered by this report, the Japanese economy and
stock market continued to strengthen--a trend that began in late spring 2003.
In addition, we started to see an upturn in private capital spending--the first
in three years. We believe this shift in spending could be positive for the
entire Japanese economy.
In this more favorable environment, we emphasized companies that we believe
should benefit from an economic recovery. Some of these were in the financial
sector, where we invested in Millea Holdings, Inc., a property and casualty
insurance company, Nikko Cordial Corp., a brokerage house, and also purchased a
position in Mitsubishi Tokyo Financial Group, Inc., which provides domestic and
international banking services (0.5%, 0.5% and 0.4% of net assets,
respectively)./1/
Other strong performers included Mitsubishi Estate Co., Ltd., a real estate
company, and Yamada Denki Co., Ltd., a home electrical appliance retailer (0.8%
and 1.4% of net assets, respectively).
Regional markets were mostly positive
Outside Japan, investments in Hong Kong, India and Taiwan did well. In Hong
Kong, a recovering economy and government policy
- ------------
/1/ Holdings are disclosed as of August 31, 2003 and are subject to change.
2
changes related to property ownership sparked a rally in the real estate
sector. As a result, our holdings in real estate companies Sun Hung Kai
Properties Ltd. and Swire Pacific Ltd. (2.0% and 1.2% of net assets,
respectively) helped boost total return.
In India, we added Bajaj Auto Ltd. (0.3% of net assets), a motorcycle
manufacturer. As India's consumer market expands, we believe Bajaj could be an
important position in the portfolio. Earlier in 2003, we weathered a steep
decline in Infosys Technologies Ltd. (2.1% of net assets), a technology
outsourcing company that significantly held back the fund. As the outlook for
the technology sector turned positive, Infosys rebounded, and its performance
over the two-month period benefited results. Ranbaxy Laboratories Ltd. (0.6% of
net assets), a generic drug manufacturer, was also helpful. Ranbaxy has been
buoyed by the global emphasis on containing health care costs.
Investments in Taiwan also had a positive influence on total return. The
Taiwanese economy has been improving, valuations are at historically low levels
and the government has instituted new policies that should attract foreign
investment.
A positive outlook
In general, we are positive about the prospects for the fund. In the
Asia/Pacific region, the "dividend culture" appears to be growing, and
companies are eager to make dividend payments to shareholders. Interest rates
are at historically low levels, and the debt-to-equity ratio for many companies
is at a 25-year low. There are several important elections in 2004, and in the
past, the election season has provided stimulus for Asian economies. We believe
the fund is well positioned to take advantage of all these developments.
/s/ Chris Legallet /s/ Jamie Chui
Chris Legallet and Jamie Chui are portfolio co-managers of Columbia Newport
Asia Pacific Fund. Mr. Legallet has co-managed the fund since it commenced
operations in August 1998. Ms. Chui has co-managed the fund since July 2002.
Top 5 sectors as of 08/31/03 (%)
[CHART]
Information technology 21.9
Consumer discretionary 17.3
Financials 13.0
Telecommunication services 9.6
Health care 9.1
Sectors are calculated as a percentage of net assets. Since the fund is
actively managed, there can be no guarantee the fund will continue to maintain
the same sectors in the future.
There are specific risks involved when investing in foreign stocks, such as
currency exchange rate fluctuations, economic change, instability of emerging
countries and political developments. In addition, concentration of
investments in a single region or country may result in greater volatility.
3
Investment Portfolio
August 31, 2003
Common Stocks - 97.8% Shares Value
--------------------------------------------------------------
CONSUMER DISCRETIONARY - 17.3%
Auto Components - 2.2%
Bridgestone Corp. 7,000 $ 97,485
Denso Corp. 7,300 136,384
-------------
233,869
-------------
Automobiles - 4.7%
Bajaj Auto Ltd. 1,700 26,986
Honda Motor Co., Ltd. 6,500 264,601
PT Astra International (a) 116,000 51,950
Toyota Motor Corp. 5,600 154,536
-------------
498,073
-------------
Hotels, Restaurants & Leisure - 1.1%
Genting Berhad 27,000 110,842
-------------
Household Durables - 0.3%
Rinnai Corp. 1,400 32,155
-------------
Internet & Catalog Retail - 0.2%
Belluna Co., Ltd. 600 23,653
-------------
Media - 0.8%
Singapore Press Holdings Ltd. 8,400 89,591
-------------
Multi-Line Retail - 1.6%
Don Quijote Co., Ltd. 1,600 79,530
Seiyu (a) 38,000 89,883
-------------
169,413
-------------
Specialty Retail - 3.9%
Matsushita Electric Industrial Co.,
Ltd. 19,000 242,293
USS Co., Ltd. 460 26,571
Yamada Denki Co., Ltd. 5,400 146,240
-------------
415,104
-------------
Textiles, Apparel & Luxury Goods - 2.5%
Li & Fung Ltd. 126,000 214,867
Sanyo Shokai Ltd. 8,200 51,441
-------------
266,308
-------------
--------------------------------------------------------------
CONSUMER STAPLES - 8.9%
Beverages - 1.8%
Foster's Group Ltd. 66,102 194,872
-------------
Food & Drug Retailing - 3.9%
Lawson, Inc. 3,400 99,070
Seven-Eleven Japan Co., Ltd. 3,000 82,016
Sugi Pharmacy Co., Ltd. 500 26,353
Woolworths Ltd. 22,496 171,787
Yaoko Co., Ltd. 3,300 42,139
-------------
421,365
-------------
Shares Value
----------------------------------------------------------
Food Products - 2.1%
Katokichi Co., Ltd. 7,900 $ 126,538
Thai Union Frozen Products Public
Co., Ltd. 35,000 26,405
Yakult Honsha Co., Ltd. 5,000 68,989
-------------
221,932
-------------
Household Products - 1.1%
Kao Corp. 6,000 113,125
-------------
----------------------------------------------------------
ENERGY - 1.5%
Oil & Gas - 1.5%
Tokyo Gas Co., Ltd. 51,000 155,161
-------------
----------------------------------------------------------
FINANCIALS - 13.0%
Banks - 4.6%
Commonwealth Bank of Australia 5,650 102,911
Hang Seng Bank Ltd. 12,200 134,917
Mitsubishi Tokyo Financial Group,
Inc. 8 46,621
United Overseas Bank Ltd. 29,000 210,061
-------------
494,510
-------------
Diversified Financials - 4.0%
Housing Development Finance Corp.,
Ltd. 23,400 246,220
Nikko Cordial Corp. 11,000 52,886
Swire Pacific Ltd., Series A 22,000 123,550
-------------
422,656
-------------
Insurance - 0.5%
Millea Holdings, Inc. 5 51,849
-------------
Real Estate - 3.9%
City Developments Ltd. 39,000 113,443
Mitsubishi Estate Co., Ltd. 10,000 89,643
Sun Hung Kai Properties Ltd. 30,000 217,329
-------------
420,415
-------------
----------------------------------------------------------
HEALTH CARE - 9.1%
Health Care Equipment & Supplies - 1.7%
Cochlear Ltd. 4,528 95,852
Olympus Optical Co., Ltd. 4,000 91,871
-------------
187,723
-------------
Pharmaceuticals - 7.4%
Chugai Pharmaceutical Co., Ltd. 13,600 144,060
CSL Ltd. 9,610 105,460
Dr. Reddy's Laboratories Ltd., ADR 7,700 195,195
Ranbaxy Laboratories Ltd. 3,000 65,495
Rohto Pharmaceutical Co., Ltd. 5,000 36,809
Sawai Pharmaceutical Co., Ltd. 900 22,098
See notes to investment portfolio.
4
Investment Portfolio (continued)
August 31, 2003
Common Stocks (continued) Shares Value
-------------------------------------------------------------
HEALTH CARE (continued)
Pharmaceuticals - continued
Takeda Chemical Industries Ltd. 6,000 $ 216,995
-------------
786,112
-------------
-------------------------------------------------------------
INDUSTRIALS - 8.5%
Commercial Services & Supplies - 1.0%
Secom Co., Ltd. 3,000 102,841
-------------
Construction & Engineering - 2.6%
JGC Corp. 14,000 107,863
Land & House Public Co., Ltd. 563,600 165,966
-------------
273,829
-------------
Industrial Conglomerates - 4.9%
Hutchison Whampoa Ltd. 35,000 258,038
Kasikornbank Public Co., Ltd.,
NVDR (a) 99,500 100,493
Wesfarmers Ltd. 9,208 168,554
-------------
527,085
-------------
-------------------------------------------------------------
INFORMATION TECHNOLOGY - 21.9%
Computers & Peripherals - 1.9%
Ambit Microsystems Corp. (a) 29,700 81,459
Asustek Computer, Inc. (a) 42,750 115,371
-------------
196,830
-------------
Electronic Equipment & Instruments - 4.7%
Fanuc Ltd. 2,200 145,177
Hoya Corp. 1,800 137,756
Keyence Corp. 300 62,656
Murata Manufacturing Co., Ltd. 1,100 61,842
Stanley Electric Co., Ltd. 5,000 88,272
-------------
495,703
-------------
Information Technology Consulting & Services - 2.1%
Infosys Technologies Ltd. 2,636 224,767
-------------
Office Electronics - 4.4%
Brother Industries Ltd. 9,000 79,830
Canon, Inc. 5,000 240,391
Ricoh Co., Ltd. 8,300 152,933
-------------
473,154
-------------
Semiconductor Equipment & Products - 8.4%
Realtek Semiconductor, Inc. 36,000 78,146
Rohm Co., Ltd. 1,500 195,912
Samsung Electronics Co., Ltd. 730 270,370
Taiwan Semiconductor Manufacturing
Co., Ltd. (a) 178,408 350,641
-------------
895,069
-------------
Shares Value
----------------------------------------------------------------
Software - 0.4%
Sumisho Computer Systems Corp. 1,700 $ 46,039
-------------
----------------------------------------------------------------
MATERIALS - 5.1%
Chemicals - 3.0%
Nitto Denko Corp. 4,600 203,025
Shin-Etsu Chemical Co., Ltd. 3,000 117,753
-------------
320,778
-------------
Metals & Mining - 2.1%
BHP Billiton Ltd. 30,862 219,040
-------------
----------------------------------------------------------------
TELECOMMUNICATION SERVICES - 9.6%
Diversified Telecommunication Services - 3.7%
Japan Telecom Holdings Co., Ltd. 18 58,774
KT Corp. 2,300 87,829
Philippine Long Distance Telephone
Co. (a) 4,700 45,777
PT Telekomunikasi 132,300 71,334
Telecom Corp. of New Zealand
Ltd. (a) 43,284 126,418
-------------
390,132
-------------
Wireless Telecommunication Services - 5.9%
China Mobile Ltd. (a) 92,000 236,510
NTT DoCoMo, Inc. 155 398,509
-------------
635,019
-------------
----------------------------------------------------------------
TRANSPORTATION - 1.1%
Transportation Infrastructure - 1.1%
Zhejiang Expressway Co., Ltd.,
Class H (a) 240,000 116,165
-------------
----------------------------------------------------------------
UTILITIES - 1.8%
Electric Utilities - 1.6%
Huaneng Power International, Inc. 128,000 175,607
-------------
Gas Utilities - 0.2%
Hong Kong & China Gas Co., Ltd. 12,613 16,981
-------------
Total Common Stocks
(cost of $9,038,076) 10,417,767
-------------
See notes to investment portfolio.
5
Investment Portfolio (continued)
August 31, 2003
Short-Term Obligation - 2.1% Par Value
------------------------------------------------------------
Repurchase agreement with State
Street Bank & Trust Co., dated
08/29/03, due 09/02/03 at 0.940%,
collateralized by a U.S. Treasury
Bond maturing 08/15/19, market
value $231,656 (repurchase
proceeds $225,024)
(cost of $225,000) $ 225,000 $ 225,000
-------------
Total Investments - 99.9%
(cost of $9,263,076) (b) 10,642,767
-------------
Other Assets & Liabilities, Net - 0.1% 14,904
------------------------------------------------------------
Net Assets - 100.0% $ 10,657,671
-------------
Notes to Investment Portfolio:
(a) Non-income producing.
(b) Cost for federal income tax purposes is $9,298,564.
Acronym Name
- -------------------------------------
ADR American Depositary Receipt
NVDR Non-Voting Depositary Receipt
Summary of Securities by % of Total
Country (Unaudited) Value Investments
------------------------------------------------
Japan $ 5,010,567 47.1%
Australia 1,058,476 9.9
Hong Kong 965,681 9.0
India 758,664 7.1
Taiwan 625,617 5.9
China 528,282 5.0
Singapore 413,095 3.9
South Korea 358,199 3.4
Thailand 292,865 2.8
United States 225,000 2.1
New Zealand 126,418 1.2
Indonesia 123,285 1.2
Malaysia 110,842 1.0
Philippines 45,776 0.4
----------- -----
$10,642,767 100.0%
----------- -----
Certain securities are listed by country of underlying exposure but may trade
predominantly on other exchanges.
See notes to financial statements.
6
Statement of Assets and Liabilities
August 31, 2003
Assets:
Investments, cost $ 9,263,076
-----------
Investments, at value $10,642,767
Cash 734
Foreign currency (cost of $56,375) 56,390
Receivable for:
Investments sold 16,622
Fund shares sold 138,783
Interest 18
Dividends 19,495
Expense reimbursement due from
Advisor/Administrator 24,151
Deferred Trustees' compensation plan 4,871
-----------
Total Assets 10,903,831
-----------
Liabilities:
Payable for:
Investments purchased 55,936
Fund shares repurchased 81,384
Management fee 8,819
Administration fee 2,288
Transfer agent fee 14,275
Pricing and bookkeeping fees 1,133
Audit fee 30,985
Foreign capital gains tax payable 17,050
Deferred Trustees' fee 4,871
Other liabilities 29,419
-----------
Total Liabilities 246,160
-----------
Net Assets $10,657,671
-----------
Composition of Net Assets:
Paid-in capital $17,763,073
Accumulated net investment loss (6,315)
Accumulated net realized loss (8,461,496)
Net unrealized appreciation (depreciation) on:
Investments 1,379,691
Foreign currency translations (232)
Foreign capital gains tax (17,050)
-----------
Net Assets $10,657,671
-----------
Class A:
Net assets $5,342,975
Shares outstanding 369,019
----------
Net asset value per share $ 14.48 (a)
----------
Maximum offering price per share
($14.48/0.9425) $ 15.36 (b)
----------
Class B:
Net assets $3,781,313
Shares outstanding 270,328
----------
Net asset value and offering price per share $ 13.99 (a)
----------
Class C:
Net assets $ 804,078
Shares outstanding 57,531
----------
Net asset value and offering price per share $ 13.98 (a)
----------
Class Z:
Net assets $ 729,305
Shares outstanding 49,968
----------
Net asset value and offering price per share $ 14.60(c)
----------
(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.
(c) Redemption price per share is equal to net asset value less any applicable
redemption fee.
See notes to financial statements.
7
Statements of Operations
For the For the
Period Ended Year Ended
August 31, June 30,
2003(a) 2003
- --------------------------------------------------------------------------------------------------------------------------
Investment Income:
Dividends $ 30,458 $ 197,927
Interest 201 4,937
---------- -----------
Total Investment Income (net of foreign taxes withheld of $2,054 and $20,104, respectively) 30,659 202,864
---------- -----------
Expenses:
Management fee 17,179 102,939
Administration fee 4,269 25,847
Distribution fee:
Class B 4,449 27,682
Class C 1,015 6,258
Service fee:
Class A 2,132 13,932
Class B 1,483 9,227
Class C 332 2,086
Pricing and bookkeeping fees 1,508 13,915
Transfer agent fee 12,533 81,076
Trustees' fees 1,128 6,843
Custody fee 4,755 29,152
Audit fee 13,166 14,315
Registration fee 8,252 45,348
Reports to shareholders 6,522 18,356
Other expenses 338 5,734
---------- -----------
Total Operating Expenses 79,061 402,710
Fees and expenses waived or reimbursed by Advisor/Administrator (37,028) (147,661)
Custody earnings credit (48) (32)
---------- -----------
Net Operating Expenses 41,985 255,017
Interest expense -- 393
---------- -----------
Net Expenses 41,985 255,410
---------- -----------
Net Investment Loss (11,326) (52,546)
---------- -----------
Net Realized and Unrealized Gain (Loss) on Investments and
Foreign Currency:
Net realized loss on:
Investments (187,619) (1,086,952)
Foreign currency transactions (3,628) (10,184)
---------- -----------
Net realized loss (191,247) (1,097,136)
---------- -----------
Net change in unrealized appreciation/depreciation on:
Investments 1,401,578 (197,586)
Foreign currency translations 8 (1,405)
Foreign capital gains tax (17,050) --
---------- -----------
Net change in unrealized appreciation/depreciation 1,384,536 (198,991)
---------- -----------
Net Gain (Loss) 1,193,289 (1,296,127)
---------- -----------
Net Increase (Decrease) in Net Assets From Operations $1,181,963 $(1,348,673)
---------- -----------
(a) The Fund has changed its fiscal year end from June 30 to August 31.
See notes to financial statements.
8
Statements of Changes in Net Assets
Period Year Year
Ended Ended Ended
Increase (Decrease) August 31, June 30, June 30,
in Net Assets: 2003 (a) 2003 2002
-------------------------------------------------------------------
Operations:
Net investment loss $ (11,326) $ (52,546) $ (121,980)
Net realized loss on
investments and foreign
currency transactions (191,247) (1,097,136) (1,564,247)
Net change in unrealized
appreciation/depreciation
on investments, foreign
currency translations
and foreign capital gains
tax 1,384,536 (198,991) (222,347)
---------- ------------ ------------
Net Increase (Decrease)
from Operations 1,181,963 (1,348,673) (1,908,574)
---------- ------------ ------------
Share Transactions:
Class A:
Subscriptions 310,109 28,630,724 18,708,721
Redemptions (172,220) (30,054,165) (20,214,863)
---------- ------------ ------------
Net Increase
(Decrease) 137,889 (1,423,441) (1,506,142)
---------- ------------ ------------
Class B:
Subscriptions 377,399 1,206,593 1,611,226
Redemptions (232,132) (2,252,380) (2,794,582)
---------- ------------ ------------
Net Increase
(Decrease) 145,267 (1,045,787) (1,183,356)
---------- ------------ ------------
Class C:
Subscriptions 784,900 10,662,175 4,392,539
Redemptions (792,425) (10,999,756) (4,346,103)
---------- ------------ ------------
Net Increase
(Decrease) (7,525) (337,581) 46,436
---------- ------------ ------------
Class Z (formerly Class S) (b):
Subscriptions 1,950 1,868,968 178,644
Proceeds received in
combination with
original Class Z -- 13 --
Redemptions (189,566) (1,271,675) (221,759)
---------- ------------ ------------
Net Increase
(Decrease) (187,616) 597,306 (43,115)
---------- ------------ ------------
Class Z (through 07/29/02):
Subscriptions -- -- 485
Proceeds combined into
former Class S -- (13) --
Redemptions -- -- (6,879)
---------- ------------ ------------
Net Decrease -- (13) (6,394)
---------- ------------ ------------
Net Increase (Decrease)
from Share
Transactions 88,015 (2,209,516) (2,692,571)
---------- ------------ ------------
Total Increase (Decrease)
in Net Assets 1,269,978 (3,558,189) (4,601,145)
Period Year Year
Ended Ended Ended
Increase (Decrease) August 31, June 30, June 30,
in Net Assets: 2003 (a) 2003 2002
------------------------------------------------------------------
Net Assets:
Beginning of period $ 9,387,693 $12,945,882 $17,547,027
----------- ----------- -----------
End of period (including
accumulated net
investment loss of
$(6,315), $(12,839) and
$(121,497), respectively) $10,657,671 $ 9,387,693 $12,945,882
----------- ----------- -----------
Changes in Shares:
Class A:
Subscriptions 22,631 2,287,361 1,284,099
Redemptions (12,561) (2,398,752) (1,372,817)
----------- ----------- -----------
Net Increase
(Decrease) 10,070 (111,391) (88,718)
----------- ----------- -----------
Class B:
Subscriptions 28,619 99,602 113,932
Redemptions (17,494) (184,634) (196,072)
----------- ----------- -----------
Net Increase
(Decrease) 11,125 (85,032) (82,140)
----------- ----------- -----------
Class C:
Subscriptions 59,050 871,959 308,889
Redemptions (58,976) (890,657) (301,261)
----------- ----------- -----------
Net Increase
(Decrease) 74 (18,698) 7,628
----------- ----------- -----------
Class Z (formerly Class S) (b):
Subscriptions 141 147,874 11,880
Issued in combination
with original Class Z -- 1 --
Redemptions (13,841) (99,198) (15,309)
----------- ----------- -----------
Net Increase
(Decrease) (13,700) 48,677 (3,429)
----------- ----------- -----------
Class Z (through 07/29/02):
Subscriptions -- -- 34
Shares combined into
former Class S -- (1) --
Redemptions -- -- (483)
----------- ----------- -----------
Net Decrease -- (1) (449)
----------- ----------- -----------
(a) The Fund has changed its fiscal year end from June 30 to August 31.
(b) On July 29, 2002, the Fund's existing Class Z shares were combined into the
Fund's Class S shares, which were subsequently redesignated as Class Z
shares.
See notes to financial statements.
9
Notes to Financial Statements
August 31, 2003
Note 1. Accounting Policies
Organization:
Columbia Newport Asia Pacific Fund (the "Fund") (formerly Liberty Newport Asia
Pacific Fund), a series of Columbia Funds Trust VI (formerly Liberty Funds
Trust VI), is a diversified portfolio of a Massachusetts business trust,
registered under the Investment Company Act of 1940, as amended, as an open-end
management investment company. The Fund's investment goal is to seek long-term
growth. The Fund may issue an unlimited number of shares. The Fund offers four
classes of shares: Class A, Class B, Class C and Class Z. On July 29, 2002, the
Fund's existing Class Z shares were combined into the Fund's Class S shares,
which were subsequently redesignated as Class Z shares. Class A shares are sold
with a front-end sales charge. A 1.00% contingent deferred sales charge
("CDSC") is assessed to Class A shares purchased without an initial sales
charge on redemptions made within eighteen months on an original purchase of $1
million to $25 million. Class B shares are subject to a CDSC. Class B shares
will convert to Class A shares in three, four or eight years after purchase,
depending on the program under which shares were purchased. Class C shares are
subject to a CDSC on redemptions made 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.
Effective February 11, 2003, the Board of Trustees approved a change in the
fiscal year end from June 30 to August 31.
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and 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. Certain of the prior period's figures have been reclassified to
conform with the current year presentation.
Security Valuation and Transactions:
Equity securities generally are valued at the last sale price reported at the
close of the principal securities exchanges on which the investments are traded
or, in the case of unlisted or listed securities for which there were no sales
during the day, at the current quoted bid price. In certain countries, the Fund
may hold foreign designated shares. If the 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. Korean equity securities that have reached the
limit for aggregate foreign ownership and for which premiums to the local
exchange prices may be paid by foreign investors are valued by applying a
broker quoted premium to the local share price.
Forward currency contracts are valued based on the weighted value of
exchange-traded contracts with similar durations.
Short-term obligations with a maturity of 60 days or less are valued at
amortized cost.
The values of all assets and liabilities quoted in foreign currencies are
translated into U.S. dollars at that day's exchange rates.
Generally, trading in foreign securities is substantially completed each day at
various times prior to the close of the New York Stock Exchange ("NYSE"). The
values of such securities used in computing the net asset value of the Fund's
shares are determined as of such times. Foreign currency exchange rates are
also generally determined prior to the close of the NYSE. Occasionally, events
affecting the values of such securities and such exchange rates may occur
between the times at which they are determined and the close of the customary
trading session of the NYSE, which would not be reflected in the computation of
the Fund's net asset value. If events materially affecting the value of such
securities and such exchange rates occur during such period, then these
securities will be valued at their fair value as determined in good faith by or
under the supervision of the Board of Trustees.
Investments for which market quotations are not readily available, or
quotations which management believes are not appropriate, are valued at fair
value under procedures approved by the Board of Trustees.
Security transactions are accounted for on the date the securities are
purchased, sold or mature.
10
Notes to Financial Statements (continued)
August 31, 2003
Cost is determined and gains (losses) are based upon the specific
identification method for both financial statement and federal income tax
purposes.
Determination of Class Net Asset Values:
All income, expenses (other than class specific fees), and realized and
unrealized gains (losses) are allocated to each class proportionately on a
daily basis, based on net assets, for purposes of determining the net asset
value of each class.
Foreign Capital Gains Tax:
Realized gains in certain countries may be subject to foreign taxes at the Fund
level, at rates ranging from approximately 10% to 30%. The Fund accrues for
such foreign taxes on net realized and unrealized gains at the rate appropriate
for each jurisdiction.
Federal Income Taxes:
Consistent with the Fund's policy to qualify as a regulated investment company
and to distribute all of its taxable income, no federal income tax has been
accrued.
Distributions to Shareholders:
Distributions to shareholders are recorded on the ex-date.
Foreign Currency Translations and Transactions:
The books and records of the Fund are maintained in U.S. dollars. Foreign
currencies, investments and other assets and liabilities of the Fund are
translated into U.S. dollars at the daily rates of exchange on the valuation
date. Purchases and sales of investment securities, dividend and interest
income and certain expenses are translated at the rates of exchange prevailing
on the respective dates of such transactions. Net unrealized foreign exchange
gains or losses arise from changes in the value of assets and liabilities,
other than investments in securities, resulting from changes in the exchange
rates.
Net realized and unrealized gains (losses) on foreign currency transactions and
translations includes gains (losses) arising from the fluctuation in exchange
rates between trade and settlement dates on securities transactions, gains
(losses) arising from the disposition of foreign currency and currency gains
(losses) between the accrual and payment dates on dividends and interest income
and foreign withholding taxes.
The Fund does not distinguish that portion of gains (losses) on investments
which is due to changes in foreign exchange rates from that which is due to
changes in market prices of the investments. Such fluctuations are included
with the net realized and unrealized gains (losses) on investments.
Forward Currency Contracts:
The Fund may enter into forward currency contracts to purchase or sell foreign
currencies at predetermined exchange rates in connection with the settlement of
purchases and sales of securities. The Fund may also enter into forward
currency contracts to hedge certain other foreign currency denominated assets.
The contracts are used to minimize the exposure to foreign exchange rate
fluctuations during the period between trade and settlement date of the
contracts. All contracts are marked-to-market daily, resulting in unrealized
gains (losses) which become realized at the time the forward currency contracts
are closed or mature. Realized and unrealized gains (losses) arising from such
transactions are included in net realized and unrealized gains (losses) on
foreign currency transactions and translations. Forward currency contracts do
not eliminate fluctuations in the prices of the Fund's portfolio securities.
While the maximum potential loss from such contracts is the aggregate face
value in U.S. dollars at the time the contract was opened, exposure is
typically limited to the change in value of the contract (in U.S. dollars) over
the period it remains open. Risks may also arise if counterparties fail to
perform their obligations under the contracts.
Redemption Fees:
Effective February 10, 2003, the Fund began imposing a 2% redemption fee to
shareholders of Class Z shares who redeem shares held for 60 days or less. For
the period February 10, 2003 to August 31, 2003, there were no redemption fees
paid to the fund for Class Z shares.
Other:
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. Where a high level of
uncertainty as to collection exists, income on securities is recorded net of
all tax withholdings with any rebates recorded when received.
The Fund's custodian takes possession through the federal book-entry system of
securities collateralizing repurchase agreements. Collateral is
marked-to-market daily to ensure that the market value of the underlying assets
remains sufficient to protect the Fund. The Fund may experience costs and
delays in liquidating the collateral if the issuer defaults or enters
bankruptcy.
11
Notes to Financial Statements (continued)
August 31, 2003
Note 2. Federal Tax Information
Income and capital gain distributions are determined in accordance with income
tax regulations, which may differ from accounting principles generally accepted
in the United States of America. These differences are primarily due to
differing treatments for deferral of losses from wash sales, foreign currency
transactions, net operating losses, capital loss carryforwards and
non-deductible expenses. Reclassifications are made to the Fund's capital
accounts to reflect income and gains available for distribution (or available
capital loss carryforwards) under income tax regulations.
For the period ended August 31, 2003, permanent items identified and
reclassified among the components of net assets are as follows:
Accumulated Accumulated
Net Investment Net Realized Paid-In
Loss Loss Capital
-------------- ------------ --------
$17,850 $3,628 $(21,478)
Net investment income, net realized gains (losses) and net assets were not
affected by this reclassification.
As of August 31, 2003, the components of distributable earnings on a tax basis
were as follows:
Unrealized
Appreciation*
-------------
$1,327,022
* The difference between book-basis and tax-basis unrealized appreciation is
attributable primarily to the tax deferral of losses on wash sales.
The following capital loss carryforwards are 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
---------- ------------
2005 $2,391,127
2009 3,676,821
2010 1,404,163
2011 953,897
----------
$8,426,008
----------
Expired capital loss carryforward, if any, are recorded as a reduction of
paid-in capital.
Note 3. Fees and Compensation Paid to Affiliates
On April 1, 2003, Newport Fund Management, Inc. ("Newport"), the investment
advisor to the Fund, merged into Columbia Management Advisors, Inc.
("Columbia"), formerly known as Columbia Management Co., an indirect,
wholly-owned subsidiary of FleetBoston Financial Corporation. At the time of
the merger, Columbia assumed the obligations of Newport with respect to the
Fund. The merger did not change the way the Fund is managed, the investment
personnel assigned to manage the Fund or the fees paid by the Fund.
Management Fee:
Columbia is the investment advisor of the Fund and receives a monthly fee equal
to 1.00% annually of the Fund's average daily net assets.
At a special meeting held on October 8, 2003, the Board of Trustees approved a
new management fee structure to go into effect on November 1, 2003. Under the
new structure, Columbia will receive a monthly fee based on the Fund's average
daily net assets as follows:
Average Daily Net Assets Annual Fee Rate
------------------------ ---------------
First $1 billion 0.95%
Next $500 million 0.90%
Over $1.5 billion 0.85%
Administration Fee:
Columbia also provides accounting and other services for a monthly fee equal to
0.25% annually of the Fund's average daily net assets.
At a special meeting held on October 8, 2003, the Board of Trustees eliminated
the administration fee effective November 1, 2003.
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 Bank and Trust Company ("State Street"). Columbia pays fees to State
Street under the Outsourcing Agreement.
Under its pricing and bookkeeping agreement with the Fund, Columbia receives
from the Fund an annual flat
12
Notes to Financial Statements (continued)
August 31, 2003
fee of $10,000, paid monthly, and in any month that the Fund's average daily
net assets are more than $50 million, a monthly fee equal to the average daily
net assets of the Fund for that month multiplied by a fee rate that is
calculated by taking into account the fees payable to State Street under the
Outsourcing Agreement. The Fund also pays out-of-pocket costs for pricing
services.
Transfer Agent Fee:
Liberty Funds Services, Inc. (the "Transfer Agent"), an affiliate of Columbia,
provides shareholder services for a monthly fee equal to 0.06% annually of the
Fund's average daily net assets plus charges based on the number of shareholder
accounts and transactions. The Transfer Agent also receives reimbursement for
certain out-of-pocket expenses. Effective October 13, 2003, Liberty Funds
Services, Inc. changed its name to Columbia Funds Services, Inc.
At a special meeting held on October 8, 2003, the Board of Trustees approved
the change of transfer agent fees structure of the Fund. Effective November 1,
2003, the Fund will be charged an annual $28.00 charge per open account for the
transfer agent fees.
Underwriting Discounts, Service and Distribution Fees:
Liberty Funds Distributor, Inc. (the "Distributor"), an affiliate of Columbia,
is the Fund's principal underwriter. Effective October 13, 2003, Liberty Funds
Distributor, Inc. changed its name to Columbia Funds Distributor Inc. For the
period ended August 31, 2003, the Fund has been advised that the Distributor
retained net underwriting discounts of $719 on sales of the Fund's Class A
shares and received CDSC of $738, $842 and $3 on Class A, Class B and Class C
share redemptions, respectively.
The Fund has adopted a 12b-1 plan (the "Plan"), which requires the payment of a
monthly service fee to the Distributor equal to 0.25% annually 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 0.75% annually of the average daily net assets attributable to Class B
and Class C shares only.
The CDSC and the fees received from the Plan are used principally as repayment
to the Distributor for amounts paid by the Distributor to dealers who sold such
shares.
Expense Limits:
Columbia has voluntarily agreed, until further notice, to waive fees and bear
certain Fund expenses to the extent that total expenses (exclusive of service
fees, distribution fees, brokerage commissions, interest, taxes and
extraordinary expenses, if any) exceed 1.90% annually of the Fund's average
daily net assets.
Other:
The Fund pays no compensation to its officers, all of whom are employees of
Columbia or any of its affiliates.
The Fund's Independent 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.
The Fund has an agreement with its custodian bank under which $48 and $32 of
custody fees were reduced by balance credits for the period ended August 31,
2003 and the year ended June 30, 2003, respectively. 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.
Note 4. Portfolio Information
Investment Activity:
For the period ended August 31, 2003, purchases and sales of investments, other
than short-term obligations, were $934,662 and $811,776, respectively.
Unrealized appreciation (depreciation) at August 31, 2003, for federal income
tax purposes, was:
Gross unrealized appreciation $2,037,391
Gross unrealized depreciation (693,188)
----------
Net unrealized appreciation $1,344,203
----------
Other:
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.
The Fund may focus its investments in certain industries, subjecting it to
greater risk than a fund that is more diversified.
13
Notes to Financial Statements (continued)
August 31, 2003
Note 5. Line of Credit
The Fund and other affiliated funds participate in a $350,000,000 credit
facility, which is used for temporary or emergency purposes to facilitate
portfolio liquidity. Interest is charged to the Fund based on its borrowings.
In addition, the Fund has agreed to pay commitment fees on its pro-rata portion
of the line of credit. The commitment fee is included in "Other expenses" on
the Statement of Operations. Prior to April 26, 2003, the Fund participated in
a separate credit agreement with similar terms to its existing agreement. For
the period ended August 31, 2003, the Fund did not borrow under these
agreements.
Note 6. Beneficial Interest
At August 31, 2003, 28.8% of the outstanding shares of the Fund were held by
one shareholder, holding in excess of 5% of the Fund's shares outstanding.
Investment activity of this shareholder may have a material effect on the Fund.
14
Financial Highlights
Selected data for a share outstanding throughout each period is as follows:
Period Ended Period Ended
August 31, Year Ended June 30, June 30,
2003 (a) --------------------------------------------- 1999 (b)
Class A Shares ------------ 2003 2002 2001 2000 ------------
- ------------------------------------- --------------------------------------------------
Net Asset Value,
Beginning of Period $ 12.87 $ 14.47 $ 16.50 $ 24.55 $ 19.01 $ 10.00
-------- --------- --------- --------- -------- --------
Income from Investment
Operations:
Net investment loss (c) (0.01) (0.03) (0.08) (0.04) (0.16)(d) (0.02)(d)
Net realized and unrealized gain
(loss) on investments, foreign
currency and foreign capital
gains tax 1.62 (1.57) (1.95) (7.38) 7.03 9.14
-------- --------- --------- --------- -------- --------
Total from Investment
Operations 1.61 (1.60) (2.03) (7.42) 6.87 9.12
-------- --------- --------- --------- -------- --------
Less Distributions
Declared to
Shareholders:
From net investment income -- -- -- -- (0.50) (0.11)
From net realized gains -- -- -- (0.18) (0.83) --
In excess of net realized gains -- -- -- (0.45) -- --
-------- --------- --------- --------- -------- --------
Total Distributions Declared
to Shareholders -- -- -- (0.63) (1.33) (0.11)
-------- --------- --------- --------- -------- --------
Net Asset Value, End of
Period $ 14.48 $ 12.87 $ 14.47 $ 16.50 $ 24.55 $ 19.01
-------- --------- --------- --------- -------- --------
Total return (e)(f) 12.51%(g) (11.06)% (12.30)% (30.60)% 36.18% 91.64%(g)
-------- --------- --------- --------- -------- --------
Ratios to Average Net
Assets/Supplemental
Data:
Operating expenses (h) 2.15%(i) 2.15% 2.15% 2.15% 2.15% 2.15%(i)
Interest expense -- --(j) --(j) -- -- --
Net investment loss (h) (0.36)%(i) (0.24)% (0.55)% (0.22)% (0.65)% (0.15)%(i)
Waiver/reimbursement 2.16%(i) 1.40% 1.74% 1.26% 0.96% 3.10%(i)
Portfolio turnover rate 8%(g) 42% 24% 43% 31% 26%(g)
Net assets, end of period (000's) $ 5,343 $ 4,620 $ 6,804 $ 9,222 $ 10,213 $ 4,606
(a) The Fund has changed its fiscal year end from June 30 to August 31.
(b) The Fund commenced investment operations on August 19, 1998. Per share
data, total return and portfolio turnover rate reflect activity from that
date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Net of fees and expenses waived or borne by the Advisor/Administrator which
amounted to $0.233 and $0.365 per share for the periods ended June 30, 2000
and 1999, respectively.
(e) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(f) Had the Advisor/Administrator 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%.
15
Financial Highlights (continued)
Selected data for a share outstanding throughout each period is as follows:
Period Ended Period Ended
August 31, Year Ended June 30, June 30,
2003 (a) --------------------------------------------- 1999 (b)
Class B Shares ------------ 2003 2002 2001 2000 ------------
- ---------------------------------------- --------------------------------------------------
Net Asset Value,
Beginning of Period $ 12.45 $ 14.09 $ 16.19 $ 24.31 $ 18.90 $ 10.00
-------- --------- --------- --------- -------- --------
Income from Investment
Operations:
Net investment loss (c) (0.02) (0.11) (0.19) (0.15) (0.34)(d) (0.11)(d)
Net realized and unrealized gain
(loss) on investments, foreign
currency and foreign capital gains
tax 1.56 (1.53) (1.91) (7.34) 7.03 9.10
-------- --------- --------- --------- -------- --------
Total from Investment
Operations 1.54 (1.64) (2.10) (7.49) 6.69 8.99
-------- --------- --------- --------- -------- --------
Less Distributions
Declared to
Shareholders:
From net investment income -- -- -- -- (0.45) (0.09)
From net realized gains -- -- -- (0.18) (0.83) --
In excess of net realized gains -- -- -- (0.45) -- --
-------- --------- --------- --------- -------- --------
Total Distributions Declared to
Shareholders -- -- -- (0.63) (1.28) (0.09)
-------- --------- --------- --------- -------- --------
Net Asset Value, End
of Period $ 13.99 $ 12.45 $ 14.09 $ 16.19 $ 24.31 $ 18.90
-------- --------- --------- --------- -------- --------
Total return (e)(f) 12.37%(g) (11.64)% (12.97)% (31.20)% 35.43% 90.36%(g)
-------- --------- --------- --------- -------- --------
Ratios to Average Net
Assets/Supplemental
Data:
Operating expenses (h) 2.90%(i) 2.90% 2.90% 2.90% 2.90% 2.90%(i)
Interest expense -- --(j) --(j) -- -- --
Net investment loss (h) (1.10)%(i) (0.87)% (1.30)% (0.80)% (1.40)% (0.90)%(i)
Waiver/reimbursement 2.16%(i) 1.45% 1.74% 1.38% 0.96% 3.10%(i)
Portfolio turnover rate 8%(g) 42% 24% 43% 31% 26%(g)
Net assets, end of period (000's) $ 3,781 $ 3,227 $ 4,851 $ 6,903 $ 5,836 $ 515
(a) The Fund has changed its fiscal year end from June 30 to August 31.
(b) The Fund commenced investment operations on August 19, 1998. Per share
data, total return and portfolio turnover rate reflect activity from that
date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Net of fees and expenses waived or borne by the Advisor/Administrator which
amounted to $0.233 and $0.365 per share for the periods ended June 30, 2000
and 1999, respectively.
(e) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(f) Had the Advisor/Administrator 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%.
16
Financial Highlights (continued)
Selected data for a share outstanding throughout each period is as follows:
Period Ended Period Ended
August 31, Year Ended June 30, June 30,
2003 (a) --------------------------------------------- 1999 (b)
Class C Shares ------------ 2003 2002 2001 2000 ------------
- ------------------------------------- --------------------------------------------------
Net Asset Value,
Beginning of Period $ 12.44 $ 14.09 $ 16.18 $ 24.28 $ 18.90 $ 10.00
-------- --------- --------- --------- -------- --------
Income from Investment
Operations:
Net investment loss (c) (0.03) (0.11) (0.19) (0.18) (0.34)(d) (0.11)(d)
Net realized and unrealized gain
(loss) on investments, foreign
currency and foreign capital
gains tax 1.57 (1.54) (1.90) (7.29) 7.00 9.10
-------- --------- --------- --------- -------- --------
Total from Investment
Operations 1.54 (1.65) (2.09) (7.47) 6.66 8.99
-------- --------- --------- --------- -------- --------
Less Distributions
Declared to
Shareholders:
From net investment income -- -- -- -- (0.45) (0.09)
From net realized gains -- -- -- (0.18) (0.83) --
In excess of net realized gains -- -- -- (0.45) -- --
-------- --------- --------- --------- -------- --------
Total Distributions Declared
to Shareholders -- -- -- (0.63) (1.28) (0.09)
-------- --------- --------- --------- -------- --------
Net Asset Value, End of
Period $ 13.98 $ 12.44 $ 14.09 $ 16.18 $ 24.28 $ 18.90
-------- --------- --------- --------- -------- --------
Total return (e)(f) 12.38%(g) (11.71)% (12.92)% (31.15)% 35.27% 90.36%(g)
-------- --------- --------- --------- -------- --------
Ratios to Average Net
Assets/Supplemental
Data:
Operating expenses (h) 2.90%(i) 2.90% 2.90% 2.90% 2.90% 2.90%(i)
Interest expense -- --(j) --(j) -- -- --
Net investment loss (h) (1.14)%(i) (0.87)% (1.30)% (0.92)% (1.40)% (0.90)%(i)
Waiver/reimbursement 2.16%(i) 1.46% 1.74% 1.29% 0.96% 3.10%(i)
Portfolio turnover rate 8%(g) 42% 24% 43% 31% 26%(g)
Net assets, end of period (000's) $ 804 $ 715 $ 1,073 $ 1,109 $ 1,383 $ 202
(a) The Fund has changed its fiscal year end from June 30 to August 31.
(b) The Fund commenced investment operations on August 19, 1998. Per share
data, total return and portfolio turnover rate reflect activity from that
date.
(c) Per share data was calculated using average shares outstanding during the
period.
(d) Net of fees and expenses waived or borne by the Advisor/Administrator which
amounted to $0.233 and $0.365 per share for the periods ended June 30, 2000
and 1999, respectively.
(e) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(f) Had the Advisor/Administrator 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%.
17
Financial Highlights (continued)
Selected data for a share outstanding throughout each period is as follows:
Period Ended Period Ended
August 31, Year Ended June 30, June 30,
2003(a) ---------------------- 2001(c)
Class Z Shares ------------ 2003(b) 2002 ------------
- ----------------------------------------------------- --------------------------
Net Asset Value, Beginning of Period $ 12.97 $ 14.55 $ 16.54 $ 19.06
-------- --------- --------- ---------
Income from Investment Operations:
Net investment income (loss) (d) --(e) (0.01) (0.04) 0.08
Net realized and unrealized gain (loss) on
investments, foreign currency and foreign capital
gains tax 1.63 (1.57) (1.95) (2.60)
-------- --------- --------- ---------
Total from Investment Operations 1.63 (1.58) (1.99) (2.52)
-------- --------- --------- ---------
Net Asset Value, End of Period $ 14.60 $ 12.97 $ 14.55 $ 16.54
-------- --------- --------- ---------
Total return (f) 12.57%(g) (10.86)% (12.03)% (13.22)%(g)
-------- --------- --------- ---------
Ratios to Average Net Assets/
Supplemental Data:
Operating expenses (h) 1.90%(i) 1.90%(j) 1.90% 1.90%(i)
Interest expense -- --(k) --(k) --
Net investment income (loss) (h) (0.13)%(i) (0.06)% (0.30)% 1.08%(i)
Waiver/reimbursement 2.16%(i) 1.95% 1.74% 1.99%(i)
Portfolio turnover rate 8%(g) 42% 24% 43%
Net assets, end of period (000's) $ 729 $ 826 $ 218 $ 305
(a) The Fund has changed its fiscal year end from June 30 to August 31.
(b) On July 29, 2002, the Fund's existing Class Z shares were combined into the
Fund's Class S shares, which were subsequently redesignated as Class Z
shares.
(c) Class S shares were initially offered on February 1, 2001. Per share data
and total return reflect activity from that date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Rounds to less than $0.01 per share.
(f) Had the Advisor/Administrator 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) This expense ratio has been restated as a result of a typographical error
made to the shareholder report dated June 30, 2003. The shareholder report
at June 30, 2003, indicated an incorrect expense ratio of 2.07%, which did
not appropriately reflect the net expenses accrued for the year.
(k) Rounds to less than 0.01%.
18
Report of Independent Auditors
To the Trustees of Columbia Funds Trust VI and the Shareholders of
Columbia Newport Asia Pacific Fund
In our opinion, the accompanying statement of assets and liabilities, including
the investment portfolio, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Columbia Newport Asia Pacific Fund
(the "Fund") (formerly Liberty Newport Asia Pacific Fund) (a series of Columbia
Funds Trust VI) (formerly Liberty Funds Trust VI), at August 31, 2003, and the
results of its operations, the changes in its net assets and the financial
highlights for the periods indicated, in conformity with accounting principles
generally accepted in the United States of America. These financial statements
and financial highlights (hereafter referred to as "financial statements") are
the responsibility of the Fund's management; our responsibility is to express
an opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with auditing standards
generally accepted in the United States of America, which require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included confirmation
of securities at August 31, 2003, by correspondence with the custodian and
brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
October 21, 2003
19
Trustees
Effective October 8, 2003, Patrick J. Simpson and Richard L. Woolworth were
appointed to the Board of Trustees of the Fund. Messrs. Simpson and Woolworth
had been directors of 15 Columbia Funds and 12 funds in the CMG Fund Trust.
Also effective October 8, 2003, the incumbent trustees of the Fund were elected
as directors of the 15 Columbia Funds and as trustees of the 12 funds in the
CMG Fund Trust. The new combined Board of Trustees of the Fund now oversees 124
funds in the Columbia Funds Complex (including the former Liberty Funds, former
Stein Roe Funds, Columbia Funds and CMG Funds). Several of those trustees also
serve on the Boards of other funds in the Columbia Funds Complex.
The Trustees serve terms of indefinite duration. The names, addresses and ages
of the Trustees and officers of the Funds in the Columbia Funds Complex, the
year each was first elected or appointed to office, their principal business
occupations during at least the last five years, the number of portfolios
overseen by each Trustee and other directorships they hold are shown below.
Each officer listed below serves as an officer of each Fund in the Columbia
Funds Complex. The Statement of Additional Information (SAI) contains
additional information about the Trustees and is available without charge upon
request by calling the fund's distributor at 800-345-6611.
Number of
Year First Portfolios in
Position Elected or Columbia Funds
with Appointed Principal Occupation(s) Complex Overseen
Name, Address and Age Funds to Office/1/ During Past Five Years by Trustee
- --------------------------------------------------------------------------------------------------------------
Disinterested Trustees
Douglas A. Hacker (Age 48) Trustee 1996 Executive Vice President - Strategy of 124
P.O. Box 66100 United Airlines (airline) since
Chicago, IL 60666 December, 2002 (formerly President of
UAL Loyalty Services (airline) from
September, 2001 to December, 2002;
Executive Vice President and Chief
Financial Officer of United Airlines
from March, 1993 to September, 2001;
Senior Vice President and Chief
Financial Officer of UAL, Inc. prior
thereto).
Janet Langford Kelly (Age 45) Trustee 1996 Chief Administrative Officer and Senior 124
3100 West Beaver Road Vice President, Kmart Holding
Troy, MI 48084-3163 Corporation since September, 2003
(formerly Executive Vice
President-Corporate Development and
Administration, General Counsel and
Secretary, Kellogg Company (food
manufacturer), from September, 1999 to
August, 2003; Senior Vice President,
Secretary and General Counsel, Sara Lee
Corporation (branded, packaged,
consumer-products manufacturer) from
January, 1995 to September, 1999).
Richard W. Lowry (Age 67) Trustee 1995 Private Investor since August, 1987 126/3/
10701 Charleston Drive (formerly Chairman and Chief Executive
Vero Beach, FL 32963 Officer, U.S. Plywood Corporation
(building products manufacturer)).
Charles R. Nelson (Age 61) Trustee 1981 Professor of Economics, University of 124
Department of Economics Washington, since January, 1976; Ford
University of Washington and Louisa Van Voorhis Professor of
Seattle, WA 98195 Political Economy, University of
Washington, since September, 1993;
Director, Institute for Economic
Research, University of Washington,
since September, 2001; Adjunct
Professor of Statistics, University of
Washington, since September, 1980;
Associate Editor, Journal of Money
Credit and Banking, since September,
1993; consultant on econometric and
statistical matters.
John J. Neuhauser (Age 60) Trustee 1985 Academic Vice President and Dean of 127/3,4/
84 College Road Faculties since August, 1999, Boston
Chestnut Hill, MA 02467-3838 College (formerly Dean, Boston College
School of Management from September,
1977 to September, 1999.
Patrick J. Simpson (Age 58) Trustee 2000 Partner, Perkins Coie L.L.P. (formerly 124
1211 S.W. 5th Avenue Partner, Stoel Rives Boley Jones &
Suite 1500 Grey).
Portland, OR 97204
Thomas E. Stitzel (Age 67) Trustee 1998 Business Consultant since 1999 124
2208 Tawny Woods Place (formerly Professor of Finance from
Boise, ID 83706 1975 to 1999 and Dean from 1977 to
1991, College of Business, Boise State
University); Chartered Financial
Analyst.
Other
Principal Occupation(s) Directorships
During Past Five Years Held
- ---------------------------------------------------------------------------
Executive Vice President - Strategy of None
United Airlines (airline) since
December, 2002 (formerly President of
UAL Loyalty Services (airline) from
September, 2001 to December, 2002;
Executive Vice President and Chief
Financial Officer of United Airlines
from March, 1993 to September, 2001;
Senior Vice President and Chief
Financial Officer of UAL, Inc. prior
thereto).
Chief Administrative Officer and Senior None
Vice President, Kmart Holding
Corporation since September, 2003
(formerly Executive Vice
President-Corporate Development and
Administration, General Counsel and
Secretary, Kellogg Company (food
manufacturer), from September, 1999 to
August, 2003; Senior Vice President,
Secretary and General Counsel, Sara Lee
Corporation (branded, packaged,
consumer-products manufacturer) from
January, 1995 to September, 1999).
Private Investor since August, 1987 None
(formerly Chairman and Chief Executive
Officer, U.S. Plywood Corporation
(building products manufacturer)).
Professor of Economics, University of None
Washington, since January, 1976; Ford
and Louisa Van Voorhis Professor of
Political Economy, University of
Washington, since September, 1993;
Director, Institute for Economic
Research, University of Washington,
since September, 2001; Adjunct
Professor of Statistics, University of
Washington, since September, 1980;
Associate Editor, Journal of Money
Credit and Banking, since September,
1993; consultant on econometric and
statistical matters.
Academic Vice President and Dean of Saucony, Inc. (athletic footwear);
Faculties since August, 1999, Boston SkillSoft Corp.
College (formerly Dean, Boston College (E-Learning)
School of Management from September,
1977 to September, 1999.
Partner, Perkins Coie L.L.P. (formerly None
Partner, Stoel Rives Boley Jones &
Grey).
Business Consultant since 1999 None
(formerly Professor of Finance from
1975 to 1999 and Dean from 1977 to
1991, College of Business, Boise State
University); Chartered Financial
Analyst.
20
Trustees (continued)
Number of
Year First Portfolios in
Position Elected or Columbia Funds
with Appointed Principal Occupation(s) Complex Overseen
Name, Address and Age Funds to Office/1/ During Past Five Years by Trustee
- ---------------------------------------------------------------------------------------------------------------
Disinterested Trustees
Thomas C. Theobald (Age 66) Trustee 1996 Managing Director, William Blair 124
27 West Monroe Street, Capital Partners (private equity
Suite 3500 investing) since September, 1994
Chicago, IL 60606 (formerly Chief Executive Officer and
Chairman of the Board of Directors,
Continental Bank Corporation prior
thereto).
Anne-Lee Verville (Age 58) Trustee 1998 Author and speaker on educational 125/4/
359 Stickney Hill Road systems needs (formerly General
Hopkinton, NH 03229 Manager, Global Education Industry from
1994 to 1997, and President,
Applications Solutions Division from
1991 to 1994, IBM Corporation (global
education and global applications)).
Richard L. Woolworth (Age 62) Trustee 1991 Chairman and Chief Executive Officer, 124
100 S.W. Market Street The Regence Group (healthcare
#1500 maintenance organization) (formerly
Portland, OR 97207 Chairman and Chief Executive Officer,
BlueCross BlueShield of Oregon;
Certified Public Accountant, Arthur
Young & Company).
Interested Trustees
William E. Mayer/2/ (Age 63) Trustee 1994 Managing Partner, Park Avenue Equity 126/3/
399 Park Avenue Partners (private equity) since
Suite 3204 February, 1999 (formerly Founding
New York, NY 10022 Partner, Development Capital LLC from
November 1996 to February, 1999; Dean
and Professor, College of Business and
Management, University of Maryland from
October, 1992 to November, 1996).
Joseph R. Palombo/2/ (Age 50) Trustee, 2000 Executive Vice President and Chief 125/5/
One Financial Center Chairman Operating Officer of Columbia
Boston, MA 02111 of the Management Group, Inc. (Columbia
Board Management) since December, 2001 and
and Director, Executive Vice President and
President Chief Operating Officer of the Advisor
since April, 2003 (formerly Chief
Operations Officer of Mutual Funds,
Liberty Financial Companies, Inc. from
August, 2000 to November, 2001;
Executive Vice President of Stein Roe &
Farnham Incorporated (Stein Roe) from
April, 1999 to April, 2003; Director of
Colonial Management Associates, Inc.
(Colonial) from April, 1999 to April,
2003; Director of Stein Roe from
September, 2000 to April, 2003)
President of Columbia Funds and Galaxy
Funds since February, 2003 (formerly
Vice President from September 2002 to
February 2003); Manager of Stein Roe
Floating Rate Limited Liability Company
since October, 2000; (formerly Vice
President of the Columbia Funds from
April, 1999 to August, 2000; Chief
Operating Officer and Chief Compliance
Officer, Putnam Mutual Funds from
December, 1993 to March, 1999).
Other
Principal Occupation(s) Directorships
During Past Five Years Held
- ------------------------------------------------------------------------
Managing Director, William Blair Anixter International (network
Capital Partners (private equity support equipment distributor),
investing) since September, 1994 Jones Lang LaSalle (real estate
(formerly Chief Executive Officer and management services) and
Chairman of the Board of Directors, MONY Group (life insurance).
Continental Bank Corporation prior
thereto).
Author and speaker on educational Chairman of the Board of
systems needs (formerly General Directors, Enesco Group, Inc.
Manager, Global Education Industry from (designer, importer and
1994 to 1997, and President, distributor of giftware and
Applications Solutions Division from collectibles).
1991 to 1994, IBM Corporation (global
education and global applications)).
Chairman and Chief Executive Officer, NW Natural, a natural gas
The Regence Group (healthcare service provider
maintenance organization) (formerly
Chairman and Chief Executive Officer,
BlueCross BlueShield of Oregon;
Certified Public Accountant, Arthur
Young & Company).
Managing Partner, Park Avenue Equity Lee Enterprises (print media),
Partners (private equity) since WR Hambrecht + Co. (financial
February, 1999 (formerly Founding service provider) and First
Partner, Development Capital LLC from Health (healthcare).
November 1996 to February, 1999; Dean
and Professor, College of Business and
Management, University of Maryland from
October, 1992 to November, 1996).
Executive Vice President and Chief None
Operating Officer of Columbia
Management Group, Inc. (Columbia
Management) since December, 2001 and
Director, Executive Vice President and
Chief Operating Officer of the Advisor
since April, 2003 (formerly Chief
Operations Officer of Mutual Funds,
Liberty Financial Companies, Inc. from
August, 2000 to November, 2001;
Executive Vice President of Stein Roe &
Farnham Incorporated (Stein Roe) from
April, 1999 to April, 2003; Director of
Colonial Management Associates, Inc.
(Colonial) from April, 1999 to April,
2003; Director of Stein Roe from
September, 2000 to April, 2003)
President of Columbia Funds and Galaxy
Funds since February, 2003 (formerly
Vice President from September 2002 to
February 2003); Manager of Stein Roe
Floating Rate Limited Liability Company
since October, 2000; (formerly Vice
President of the Columbia Funds from
April, 1999 to August, 2000; Chief
Operating Officer and Chief Compliance
Officer, Putnam Mutual Funds from
December, 1993 to March, 1999).
/1/ In December 2000, the boards of each of the former Liberty Funds and former
Stein Roe Funds were combined into one board of trustees responsible for
the oversight of both fund groups (collectively, the "Liberty Board"). In
October 2003, the trustees on the Liberty Board were elected to the boards
of the Columbia Funds (the "Columbia Board") and of the CMG Funds (the "CMG
Funds Board"); simultaneous with that election, Patrick J. Simpson and
Richard L. Woolworth, who had been directors on the Columbia Board and
trustees on the CMG Funds Board, were appointed to serve as trustees of the
Liberty Board. The date shown is the earliest date on which a
trustee/director was elected or appointed to the board of a Fund in the
Columbia Funds Complex).
/2/ Mr. Mayer is an "interested person" (as defined in the Investment Company
Act of 1940 (1940 Act)) by reason of his affiliation with WR Hambrecht +
Co. Mr. Palombo is an interested person as an employee of the Advisor.
/3/ Messrs. Lowry, Neuhauser and Mayer each also serve as a director/trustee of
the All-Star Funds, currently consisting of 2 funds, which are advised by
an affiliate of the Advisor.
/4/ Mr. Neuhauser and Ms. Verville also serve as disinterested directors of
Columbia Management Multi-Strategy Hedge Fund, LLC, which is advised by the
Advisor.
/5/ Mr. Palombo also serves as an interested director of Columbia Management
Multi-Strategy Hedge Fund, LLC, which is advised by the Advisor.
21
Officers and Transfer Agent
Year first
elected or
Position with appointed Principal occupation(s)
Name, address and age Columbia Funds to office during past five years
- ----------------------------------------------------------------------------------------------------------
Officers
Vicki L. Benjamin (Age 42) Chief 2001 Controller of the Columbia Funds and of the
One Financial Center Accounting Liberty All-Star Funds since May, 2002; Chief
Boston, MA 02111 Officer and Accounting Officer of the Columbia Funds and
Controller Liberty All-Star Funds since June, 2001;
Controller and Chief Accounting Officer of the
Galaxy Funds since September, 2002 (formerly Vice
President, Corporate Audit, State Street Bank and
Trust Company from May, 1998 to April, 2001;
Audit Manager from July, 1994 to June, 1997;
Senior Audit Manager from July, 1997 to May,
1998, Coopers & Lybrand, LLP).
J. Kevin Connaughton (Age 39) Treasurer 2000 Treasurer of the Columbia Funds and of the
One Financial Center Liberty All-Star Funds since December, 2000; Vice
Boston, MA 02111 President of the Advisor since April, 2003
(formerly Controller of the Liberty Funds and of
the Liberty All-Star Funds from February, 1998 to
October, 2000); Treasurer of the Galaxy Funds
since September, 2002; Treasurer, Columbia
Management Multi-Strategy Hedge Fund, LLC since
December, 2002 (formerly Vice President of
Colonial from February, 1998 to October, 2000 and
Senior Tax Manager, Coopers & Lybrand, LLP from
April, 1996 to January, 1998).
Important Information About This Report
The Transfer Agent for Columbia Newport Asia Pacific Fund is:
Columbia Funds Services, Inc.
P.O. Box 8081
Boston, MA 02266-8081
Please note our new name as of October 13, 2003
The fund mails one shareholder report to each shareholder address. If you would
like more than one report, please call shareholder services at 800-345-6611 and
additional reports will be sent to you.
This report has been prepared for shareholders of Columbia Newport Asia Pacific
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.
Annual Report:
Columbia Newport Asia Pacific Fund
Columbia Newport Asia Pacific Fund Annual Report, August 31, 2003
[LOGO](R) ColumbiaFunds
A Member of Columbia Management Group
(c)2003 Columbia Funds Distributor, Inc.
One Financial Center, Boston, MA 02111-2621
800.426.3750 WWW.columbiafunds.com
737-02/208P-0803 (10/03) 03/2892
PRSRT STD
U.S. Postage
PAID
Holliston, MA Permit NO. 20
Item 2. Code of Ethics.
(a) The registrant has, as of the end of the period covered by this
report, adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal
accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
Registrant or a third party.
(b) During the period covered by this report, there were not any
amendments to a provision of the code of ethics adopted in 2(a) above.
(c) During the period covered by this report, there were not any waivers
or implicit waivers to a provision of the code of ethics adopted in
2(a) above.
Item 3. Audit Committee Financial Expert.
The registrant's Board of Trustees has determined that Douglas A. Hacker and
Anne-Lee Verville, each of whom are members of the registrant's Board of
Trustees and Audit Committee, each qualify as an audit committee financial
expert. Mr. Hacker and Ms. Verville are each independent trustees, as defined in
paragraph (a)(2) of this item's instructions.
Item 4. Principal Accountant Fees and Services.
Not applicable at this time.
Item 5. Audit Committee of Listed Registrants.
Not applicable at this time.
Item 6. Reserved.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable.
Item 8. Reserved.
Item 9. Controls and Procedures.
(a) The registrant's principal executive officer and principal financial
officer, 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 last fiscal
half-year (the registrant's second fiscal half-year in the case of an
annual report) that has materially affected, or is reasonably likely
to materially affect, the registrant's internal control over financial
reporting.
Item 10. Exhibits.
(a)(1) Code of ethics required to be disclosed under Item 2 of Form N-CSR
attached hereto as Exhibit 99.CODE ETH
(a)(2) Certifications pursuant to Rule 30a-2(a) under the Investment Company Act
of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT.
(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of
1940 (17 CFR 270.30a-2(b)) attached hereto as Exhibit 99.906CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Columbia Funds Trust VI
--------------------------------------
By (Signature and Title) /s/ Joseph R. Palombo
-------------------------
Joseph R. Palombo, President
Date November 7, 2003
----------------------------------------------
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/ Joseph R. Palombo
--------------------------
Joseph R. Palombo, President
Date November 7, 2003
----------------------------------------------
By (Signature and Title) /s/ J. Kevin Connaughton
--------------------------
J. Kevin Connaughton, Treasurer
Date November 7, 2003
----------------------------------------------