N-CSR
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: 9/30/2003
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Date of reporting period: 9/30/2003
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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. Reports to Stockholders.
[GRAPHIC]
Columbia Equity Funds
Annual Report
September 30, 2003
We are Columbia Funds!
INSIDE -- Management's discussion of the changes effective as of October 13,
2003.
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[GRAPHIC]
President's Message
[PHOTO]
Joseph R. Palombo
Dear Shareholder:
As you know, your fund has long been associated with a larger investment
management organization owned and operated by FleetBoston Financial Corp. In
2001, the asset management division of FleetBoston was named Columbia
Management Group (CMG). Earlier this year, six of the asset management firms
brought together under the CMG umbrella were consolidated and renamed Columbia
Management Advisors, Inc.
On October 13, 2003, we took the natural next step in this process by
changing the name of our funds from Liberty to Columbia. We have also modified
certain fund names that existed under both the Liberty and Columbia brands.
Here are the new names:
FORMER NAME NEW NAME
Liberty Asset Allocation Fund Columbia Asset Allocation Fund
Liberty Equity Growth Fund Columbia Large Cap Growth Fund
Liberty Equity Value Fund Columbia Disciplined Value Fund
Liberty International Equity Fund Columbia International Equity Fund
Liberty Large Cap Core Fund Columbia Large Cap Core Fund
Liberty Small Cap Fund Columbia Small Cap Fund
Liberty Small Company Equity Fund Columbia Small Company Equity Fund
A complete 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
shareholders to do business with us. All funds are now listed under "Columbia"
in the mutual fund listings section of your newspaper (depending on the
newspaper's listing requirements). All service inquiries are now handled by
Columbia Funds Services, Inc., the new name of our shareholder service
organization.
What has not changed is our commitment to shareholders. We remain committed
to providing the best possible customer service and to offering a wide variety
of mutual funds to help you achieve your long-term financial goals. Should you
have questions, please call Columbia Funds Services at 800-345-6611.
In the report that follows, the portfolio managers of each fund talk in
depth about investment strategies and other factors that affected fund
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. Palombo
Joseph R. Palombo
President
[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.
[GRAPHIC]
Market Overview
During the past 11 months, healthy consumer spending and a pick-up in
business activity propelled the US economy forward. Although the first two
quarters of the period were lackluster, the mood of the country shifted as the
major conflicts of the war in Iraq came to a close. Second quarter 2003 gross
domestic product (GDP) - a common measure of economic growth - was reported at
3.3%, having twice been revised upward. Expectations for the third quarter of
2003 ran even higher.
Stock prices moved ahead during the period, although they were held in check
early in 2003 as the nation prepared to go to war and the economy faltered. For
the 11-month period covered by this report, the S&P 500, a broad measure of
performance for the stock of large US companies, returned 14.33%. The Russell
2000 Index, which measures the performance of the stock of small companies,
gained 32.26%. Stock markets outside the United States also did well. The MSCI
AC World Free ex-US Index, a measure of stock markets in developed markets
outside the United States, returned 22.46%. A sharp rebound in the Japanese
stock market in the second half of the period helped account for this strong
gain.
AN ECONOMY ON THE MOVE
A weak US economy at the beginning of the period gave way to a burst of
solid growth as calendar year 2003 wore on. Consumers continued to spend on
homes, autos and retail goods. Housing starts jumped to a 17-year high in
August. Retailers benefited as consumers spent the tax rebates and heftier
paychecks generated by an accelerated tax cut.
Manufacturing activity see-sawed, but the trend at the end of the period was
generally favorable. New orders surged near the end of calendar year 2002, a
welcome sign that the nation's hard-hit industrial sector was beginning to
heal. Then in the early spring, data from the Institute for Supply Management
showed that manufacturing activity had fallen to its lowest level in 15 months
as factory operating capacity fell to 72%. But manufacturing turned around and
staged a stunning recovery, led by output of technology-related products. By
the end of the period, businesses were buying new equipment again, companies
were rebuilding inventories and rising demand for capital goods
suggested that capacity utilization was making steady, if not spectacular,
gains.
Only the jobs market failed to show any improvement during the period. The
jobless rate moved upward from 6.0% to 6.4% before falling back to 6.1% at the
end of the period. However, there was little comfort in the decline. Few
economists read the move as a sign that the labor market was improving. The
drop was attributed to an increase in the number of people leaving the labor
force. In fact, employers continued to cut jobs into the last month of the
period. But if demand for capital goods is indeed improving, if the economy is
growing at a pace of 3.0% or higher and if companies are reporting better
earnings, there is hope that an improvement in the job market will not be far
behind.
A SPECULATOR'S MARKET
Virtually every segment of the US stock market participated in the rally
that brought stock prices up sharply for the 11-month period. However, the
riskiest sectors and the lowest quality stocks gained the most ground. No doubt
investors reasoned that in a stronger economy, the most downtrodden had the
greatest rebound potential. Technology was the leading sector in the stock
market. Growth stocks outperformed value, and small and mid-cap stocks outdid
large-caps.
We are pleased to report that our equity funds reported solid - and in many
cases double-digit - returns for the period. However, most of them lagged their
indices because in general, our managers focus on higher-quality issues.
Although this was not the winning strategy for the reporting period, we believe
it is the appropriate long-term strategy for our funds and for our
shareholders. We believe many of the holdings in our funds that underperformed
during the period have the potential to perform well when the stock market once
again focuses on earnings and earnings growth potential.
LOOKING AHEAD
We expect economic growth to continue. In fact, next year may be even better
as the full impact of federal tax cuts, state belt-tightening and the lagging
impact of low interest rates continue to reinforce economic activity. The
economy could get an additional boost from an improved trade balance, a delayed
benefit of a weaker US dollar. Foreign economic news is upbeat as well. Even
Japan is reporting progress and stands poised for a vigorous expansion, which
if it materializes, could signal the end to a very long dry spell for the
country.
2
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Despite these encouraging signs, we remain concerned about the labor market.
Growth in jobs will be necessary if the rising trend in consumer activity is to
continue. Next year's outlook also hinges on the commodity markets. If the
price of oil declines, it would provide the equivalent of a "tax cut" for the
economy as a whole. Although there is currently no sign of a break in the
relatively high price of oil, the current administration has a strong incentive
to do everything possible to bring energy prices down.
The prospects for the stock market are closely tied to corporate earnings
reports. Analysts expect earnings growth of 18% in 2003 and another 13% gain in
2004. Given that outlook, a rise in the 10-year Treasury yield to even 5% would
leave stocks with room to appreciate from current levels.
3
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Performance Information - Columbia Asset Allocation Fund
PERFORMANCE OF A $10,000 INVESTMENT ($)
WITHOUT WITH
10/01/93 - 9/30/03 SALES CHARGE SALES CHARGE
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Class A 19,338 18,221
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Class B 18,684 18,684
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Class C 18,679 18,679
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Class G 18,250 18,250
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Class T 19,264 18,152
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Class Z 19,647 n/a
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[CHART]
Lehman Brothers Class A shares Class A shares
Aggreate without with
Bond Index DJIA S&P 500 Index sales charge sales charge
--------------- ------- ------------- ------------------- -------------------
09/30/1993 $10,000
10/01/1993 - 10/31/1993 $10,037 $10,000 $10,000 $10,000 $9,425
11/01/1993 - 11/30/1993 $9,952 $10,353 $10,207 $10,045 $9,467
12/01/1993 - 12/31/1993 $10,005 $10,362 $10,110 $10,000 $9,425
01/01/1994 - 01/31/1994 $10,140 $10,559 $10,232 $10,011 $9,435
02/01/1994 - 02/28/1994 $9,964 $11,190 $10,580 $10,256 $9,666
03/01/1994 - 03/31/1994 $9,718 $10,778 $10,292 $10,039 $9,461
04/01/1994 - 04/30/1994 $9,640 $10,226 $9,844 $9,698 $9,141
05/01/1994 - 05/31/1994 $9,639 $10,355 $9,970 $9,653 $9,098
06/01/1994 - 06/30/1994 $9,618 $10,570 $10,133 $9,698 $9,140
07/01/1994 - 07/31/1994 $9,809 $10,195 $9,885 $9,527 $8,980
08/01/1994 - 08/31/1994 $9,821 $10,587 $10,209 $9,756 $9,195
09/01/1994 - 09/30/1994 $9,677 $11,007 $10,628 $9,958 $9,385
10/01/1994 - 10/31/1994 $9,668 $10,810 $10,367 $9,723 $9,164
11/01/1994 - 11/30/1994 $9,647 $10,992 $10,601 $9,843 $9,277
12/01/1994 - 12/31/1994 $9,713 $10,518 $10,215 $9,640 $9,086
01/01/1995 - 01/31/1995 $9,906 $10,786 $10,366 $9,764 $9,203
02/01/1995 - 02/28/1995 $10,141 $10,813 $10,634 $9,959 $9,387
03/01/1995 - 03/31/1995 $10,203 $11,283 $11,049 $10,248 $9,659
04/01/1995 - 04/30/1995 $10,346 $11,696 $11,375 $10,479 $9,876
05/01/1995 - 05/31/1995 $10,747 $12,156 $11,710 $10,788 $10,168
06/01/1995 - 06/30/1995 $10,825 $12,560 $12,178 $11,256 $10,609
07/01/1995 - 07/31/1995 $10,801 $12,817 $12,460 $11,464 $10,805
08/01/1995 - 08/31/1995 $10,932 $13,245 $12,874 $11,663 $10,992
09/01/1995 - 09/30/1995 $11,038 $12,969 $12,906 $11,700 $11,027
10/01/1995 - 10/31/1995 $11,181 $13,471 $13,451 $12,100 $11,405
11/01/1995 - 11/30/1995 $11,349 $13,377 $13,403 $12,147 $11,449
12/01/1995 - 12/31/1995 $11,508 $14,274 $13,991 $12,564 $11,842
01/01/1996 - 01/31/1996 $11,584 $14,394 $14,261 $12,721 $11,990
02/01/1996 - 02/29/1996 $11,382 $15,177 $14,746 $12,991 $12,244
03/01/1996 - 03/31/1996 $11,303 $15,431 $14,883 $12,982 $12,235
04/01/1996 - 04/30/1996 $11,239 $15,716 $15,026 $13,077 $12,325
05/01/1996 - 05/31/1996 $11,217 $15,666 $15,247 $13,173 $12,416
06/01/1996 - 06/30/1996 $11,367 $15,874 $15,640 $13,387 $12,617
07/01/1996 - 07/31/1996 $11,398 $15,906 $15,700 $13,535 $12,757
08/01/1996 - 08/31/1996 $11,379 $15,553 $15,006 $13,175 $12,418
09/01/1996 - 09/30/1996 $11,577 $15,799 $15,322 $13,360 $12,592
10/01/1996 - 10/31/1996 $11,834 $16,548 $16,185 $13,901 $13,101
11/01/1996 - 11/30/1996 $12,036 $16,961 $16,632 $14,204 $13,387
12/01/1996 - 12/31/1996 $11,924 $18,347 $17,889 $14,771 $13,921
01/01/1997 - 01/31/1997 $11,961 $18,140 $17,535 $14,644 $13,802
02/01/1997 - 02/28/1997 $11,991 $19,166 $18,631 $15,122 $14,253
03/01/1997 - 03/31/1997 $11,858 $19,349 $18,776 $15,071 $14,204
04/01/1997 - 04/30/1997 $12,036 $18,520 $18,004 $14,730 $13,883
05/01/1997 - 05/31/1997 $12,150 $19,717 $19,079 $15,293 $14,414
06/01/1997 - 06/30/1997 $12,295 $20,622 $20,241 $15,795 $14,886
07/01/1997 - 07/31/1997 $12,627 $21,583 $21,148 $16,226 $15,293
08/01/1997 - 08/31/1997 $12,519 $23,130 $22,831 $17,112 $16,128
09/01/1997 - 09/30/1997 $12,703 $21,442 $21,553 $16,556 $15,604
10/01/1997 - 10/31/1997 $12,887 $22,351 $22,734 $17,023 $16,044
11/01/1997 - 11/30/1997 $12,947 $20,936 $21,974 $17,074 $16,092
12/01/1997 - 12/31/1997 $13,078 $22,008 $22,992 $17,282 $16,288
01/01/1998 - 01/31/1998 $13,245 $22,248 $23,387 $17,534 $16,526
02/01/1998 - 02/28/1998 $13,234 $22,244 $23,647 $17,781 $16,759
03/01/1998 - 03/31/1998 $13,279 $24,041 $25,352 $18,356 $17,300
04/01/1998 - 04/30/1998 $13,348 $24,755 $26,650 $18,875 $17,790
05/01/1998 - 05/31/1998 $13,475 $25,497 $26,919 $19,079 $17,982
06/01/1998 - 06/30/1998 $13,590 $25,038 $26,456 $18,852 $17,768
07/01/1998 - 07/31/1998 $13,618 $25,184 $27,530 $19,203 $18,099
08/01/1998 - 08/31/1998 $13,840 $24,990 $27,238 $19,032 $17,937
09/01/1998 - 09/30/1998 $14,164 $21,209 $23,300 $17,778 $16,755
10/01/1998 - 10/31/1998 $14,089 $22,064 $24,793 $18,473 $17,411
11/01/1998 - 11/30/1998 $14,169 $24,173 $26,809 $19,435 $18,318
12/01/1998 - 12/31/1998 $14,212 $25,647 $28,434 $19,974 $18,825
01/01/1999 - 01/31/1999 $14,313 $25,829 $30,071 $20,651 $19,463
02/01/1999 - 02/28/1999 $14,062 $26,328 $31,328 $21,053 $19,843
03/01/1999 - 03/31/1999 $14,140 $26,181 $30,354 $20,580 $19,396
04/01/1999 - 04/30/1999 $14,185 $27,529 $31,568 $21,226 $20,005
05/01/1999 - 05/31/1999 $14,060 $30,351 $32,790 $21,391 $20,161
06/01/1999 - 06/30/1999 $14,015 $29,704 $32,016 $20,867 $19,667
07/01/1999 - 07/31/1999 $13,955 $30,860 $33,793 $21,345 $20,118
08/01/1999 - 08/31/1999 $13,948 $29,971 $32,739 $21,106 $19,892
09/01/1999 - 09/30/1999 $14,110 $30,459 $32,578 $20,868 $19,668
10/01/1999 - 10/31/1999 $14,162 $29,073 $31,685 $20,673 $19,485
11/01/1999 - 11/30/1999 $14,160 $30,178 $33,691 $21,323 $20,097
12/01/1999 - 12/31/1999 $14,092 $30,595 $34,375 $21,574 $20,334
01/01/2000 - 01/31/2000 $14,046 $32,336 $36,400 $22,183 $20,907
02/01/2000 - 02/29/2000 $14,216 $30,770 $34,572 $21,566 $20,326
03/01/2000 - 03/31/2000 $14,403 $28,487 $33,919 $21,639 $20,395
04/01/2000 - 04/30/2000 $14,362 $30,721 $37,236 $23,059 $21,733
05/01/2000 - 05/31/2000 $14,355 $30,192 $36,116 $22,971 $21,650
06/01/2000 - 06/30/2000 $14,653 $29,598 $35,375 $22,452 $21,161
07/01/2000 - 07/31/2000 $14,786 $29,387 $36,249 $23,341 $21,999
08/01/2000 - 08/31/2000 $15,001 $29,596 $35,683 $23,442 $22,094
09/01/2000 - 09/30/2000 $15,095 $31,546 $37,899 $24,450 $23,044
10/01/2000 - 10/31/2000 $15,195 $29,960 $35,898 $23,714 $22,350
11/01/2000 - 11/30/2000 $15,444 $30,861 $35,748 $23,488 $22,138
12/01/2000 - 12/31/2000 $15,731 $29,297 $32,931 $22,450 $21,159
01/01/2001 - 01/31/2001 $15,989 $30,346 $33,092 $22,616 $21,316
02/01/2001 - 02/28/2001 $16,129 $30,628 $34,267 $23,234 $21,898
03/01/2001 - 03/31/2001 $16,209 $29,525 $31,142 $21,879 $20,621
04/01/2001 - 04/30/2001 $16,141 $27,792 $29,167 $20,943 $19,739
05/01/2001 - 05/31/2001 $16,238 $30,202 $31,434 $21,749 $20,498
06/01/2001 - 06/30/2001 $16,300 $30,700 $31,644 $21,775 $20,523
07/01/2001 - 07/31/2001 $16,665 $29,549 $30,875 $21,246 $20,024
08/01/2001 - 08/31/2001 $16,856 $29,605 $30,573 $21,193 $19,974
09/01/2001 - 09/30/2001 $17,054 $27,991 $28,659 $20,517 $19,337
10/01/2001 - 10/31/2001 $17,410 $24,890 $26,343 $19,505 $18,384
11/01/2001 - 11/30/2001 $17,170 $25,530 $26,846 $19,946 $18,799
12/01/2001 - 12/31/2001 $17,060 $27,715 $28,905 $20,720 $19,529
01/01/2002 - 01/31/2002 $17,198 $28,519 $29,160 $20,753 $19,560
02/01/2002 - 02/28/2002 $17,365 $27,908 $28,734 $20,191 $19,030
03/01/2002 - 03/31/2002 $17,077 $28,433 $28,179 $19,696 $18,564
04/01/2002 - 04/30/2002 $17,408 $29,272 $29,239 $20,118 $18,961
05/01/2002 - 05/31/2002 $17,556 $27,984 $27,467 $19,325 $18,214
06/01/2002 - 06/30/2002 $17,707 $27,925 $27,264 $19,230 $18,125
07/01/2002 - 07/31/2002 $17,921 $26,007 $25,323 $18,255 $17,206
08/01/2002 - 08/31/2002 $18,224 $24,581 $23,350 $17,622 $16,609
09/01/2002 - 09/30/2002 $18,519 $24,375 $23,502 $17,758 $16,736
10/01/2002 - 10/31/2002 $18,434 $21,360 $20,947 $16,511 $15,562
11/01/2002 - 11/30/2002 $18,429 $23,624 $22,791 $17,447 $16,444
12/01/2002 - 12/31/2002 $18,810 $25,027 $24,133 $18,053 $17,015
01/01/2003 - 01/31/2003 $18,827 $23,468 $22,716 $17,518 $16,511
02/01/2003 - 02/28/2003 $19,087 $22,658 $22,121 $17,164 $16,177
03/01/2003 - 03/31/2003 $19,071 $22,201 $21,789 $16,960 $15,985
04/01/2003 - 04/30/2003 $19,230 $22,485 $22,001 $17,033 $16,054
05/01/2003 - 05/31/2003 $19,587 $23,859 $23,814 $17,883 $16,855
06/01/2003 - 06/30/2003 $19,548 $24,901 $25,068 $18,759 $17,681
07/01/2003 - 07/31/2003 $18,891 $25,282 $25,389 $19,001 $17,909
08/01/2003 - 08/31/2003 $19,016 $25,980 $25,836 $19,043 $17,948
09/01/2003 - 09/30/2003 $19,526 $26,492 $26,340 $19,372 $18,259
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 above illustration assumes a $10,000
investment made on October 1, 1993, and reinvestment of income and capital
gains distributions. On October 13, 2003, the Lehman Brothers Aggregate Bond
Index was added as an additional benchmark. The Standard & Poor's (S&P) 500
Index is an unmanaged index that tracks the performance of 500 widely held,
large-capitalization US stocks. The Dow Jones Industrial Average is an
unmanaged price-weighted average based on the ''price only'' performance of 30
blue chip 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, and
non-convertible investment grade debt issues with at least $100 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 9/30/03 (%)
SHARE CLASS A B C G T Z
INCEPTION 11/1/98 11/1/98 11/18/02 3/4/96 12/30/91 12/30/91
- ------------------------------------------------------------------------------------------------
without with without with without with without with without with without
sales sales sales sales sales sales sales sales sales sales sales
charge charge charge charge charge charge charge charge charge charge charge
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11-month
(cumulative) 10.80 4.46 10.13 5.13 10.10 9.10 10.12 5.12 10.75 4.35 11.07
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1-year 17.08 10.37 16.29 11.29 16.26 15.26 16.28 11.28 17.03 10.33 17.46
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5-year 0.91 -0.27 0.22 -0.12 0.22 0.22 0.15 -0.37 0.84 -0.35 1.07
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10-year 6.82 6.18 6.45 6.45 6.45 6.45 6.20 6.20 6.78 6.14 6.99
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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. The graph and
table do not reflect the deduction of taxes that a shareholder would pay on
fund distributions or the redemptions of fund shares. The "with sales charge"
returns include the maximum initial sales charge of 5.75% for class A shares,
the appropriate class B contingent deferred sales charge (CDSC) for the holding
period after purchase as follows: through first year-5%, second year-4%, third
year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the
class C CDSC of 1.00% that is applied to shares sold within the first year
after they are purchased. After holding class C shares for one year, you may
sell them at any time without paying a CDSC. For class G shares, the CDSC for
the holding period after purchase is as follows: through the first year-5%,
second year-4%, third year-4%, fourth year-4%, fifth year-3%, sixth year-2%,
seventh year-1%, thereafter-0%. For the class T shares, the "with sales charge"
returns include the maximum 5.75% charge. 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 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 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 for periods prior to
November 18, 2002 include the returns of Prime B Shares of the Galaxy Fund
(adjusted to reflect the sales charge applicable to Class C shares). The
returns shown for Class C shares also include the returns of Retail A Shares of
the Galaxy 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
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. Retail A shares of the Galaxy 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 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 Fund (March 4, 1996). Retail A
Shares of the Galaxy 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 share include returns of Trust Shares of the Galaxy 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 Fund were initially
offered on December 30, 1991.
4
-----------------------------------------------------------------------------
Performance Information - Columbia Large Cap Growth Fund
PERFORMANCE OF A $10,000 INVESTMENT ($)
WITHOUT WITH
10/01/93 - 9/30/03 SALES CHARGE SALES CHARGE
--------------------------------------------
Class A 22,534 21,235
--------------------------------------------
Class B 21,731 21,731
--------------------------------------------
Class C 21,756 21,756
--------------------------------------------
Class G 21,048 21,048
--------------------------------------------
Class T 22,375 21,085
--------------------------------------------
Class Z 23,233 n/a
--------------------------------------------
[CHART]
Class A shares Class A shares
without with S&P 500 Russell 1000
sales charge sales charge Index Growth Index
------------------- ------------------ ---------- ------------
$10,000 $9,425 $10,000 $10,000
10/01/1993 - 10/31/1993 $10,140 $9,557 $10,207 $10,278
11/01/1993 - 11/30/1993 $10,133 $9,550 $10,110 $10,209
12/01/1993 - 12/31/1993 $10,302 $9,710 $10,232 $10,385
01/01/1994 - 01/31/1994 $10,592 $9,983 $10,580 $10,626
02/01/1994 - 02/28/1994 $10,362 $9,766 $10,292 $10,431
03/01/1994 - 03/31/1994 $9,930 $9,359 $9,844 $9,927
04/01/1994 - 04/30/1994 $10,011 $9,435 $9,970 $9,973
05/01/1994 - 05/31/1994 $10,227 $9,639 $10,133 $10,125
06/01/1994 - 06/30/1994 $9,918 $9,348 $9,885 $9,825
07/01/1994 - 07/31/1994 $10,128 $9,545 $10,209 $10,161
08/01/1994 - 08/31/1994 $10,584 $9,975 $10,628 $10,727
09/01/1994 - 09/30/1994 $10,351 $9,756 $10,367 $10,582
10/01/1994 - 10/31/1994 $10,620 $10,009 $10,601 $10,831
11/01/1994 - 11/30/1994 $10,328 $9,734 $10,215 $10,483
12/01/1994 - 12/31/1994 $10,365 $9,769 $10,366 $10,659
01/01/1995 - 01/31/1995 $10,586 $9,977 $10,634 $10,887
02/01/1995 - 02/28/1995 $10,882 $10,256 $11,049 $11,344
03/01/1995 - 03/31/1995 $11,197 $10,553 $11,375 $11,675
04/01/1995 - 04/30/1995 $11,532 $10,869 $11,710 $11,930
05/01/1995 - 05/31/1995 $11,967 $11,279 $12,178 $12,346
06/01/1995 - 06/30/1995 $12,345 $11,636 $12,460 $12,822
07/01/1995 - 07/31/1995 $12,727 $11,995 $12,874 $13,356
08/01/1995 - 08/31/1995 $12,666 $11,938 $12,906 $13,370
09/01/1995 - 09/30/1995 $13,157 $12,401 $13,451 $13,987
10/01/1995 - 10/31/1995 $13,226 $12,465 $13,403 $13,996
11/01/1995 - 11/30/1995 $13,768 $12,976 $13,991 $14,541
12/01/1995 - 12/31/1995 $13,853 $13,057 $14,261 $14,624
01/01/1996 - 01/31/1996 $14,313 $13,490 $14,746 $15,112
02/01/1996 - 02/29/1996 $14,501 $13,667 $14,883 $15,389
03/01/1996 - 03/31/1996 $14,601 $13,761 $15,026 $15,409
04/01/1996 - 04/30/1996 $14,883 $14,027 $15,247 $15,814
05/01/1996 - 05/31/1996 $15,219 $14,344 $15,640 $16,366
06/01/1996 - 06/30/1996 $15,230 $14,354 $15,700 $16,389
07/01/1996 - 07/31/1996 $14,409 $13,580 $15,006 $15,428
08/01/1996 - 08/31/1996 $14,737 $13,890 $15,322 $15,826
09/01/1996 - 09/30/1996 $15,565 $14,670 $16,185 $16,979
10/01/1996 - 10/31/1996 $15,941 $15,024 $16,632 $17,081
11/01/1996 - 11/30/1996 $17,013 $16,035 $17,889 $18,363
12/01/1996 - 12/31/1996 $16,692 $15,732 $17,535 $18,003
01/01/1997 - 01/31/1997 $17,516 $16,509 $18,631 $19,265
02/01/1997 - 02/28/1997 $17,150 $16,164 $18,776 $19,134
03/01/1997 - 03/31/1997 $16,658 $15,700 $18,004 $18,099
04/01/1997 - 04/30/1997 $17,566 $16,556 $19,079 $19,301
05/01/1997 - 05/31/1997 $18,774 $17,695 $20,241 $20,695
06/01/1997 - 06/30/1997 $19,347 $18,235 $21,148 $21,522
07/01/1997 - 07/31/1997 $21,032 $19,823 $22,831 $23,425
08/01/1997 - 08/31/1997 $20,340 $19,171 $21,553 $22,055
09/01/1997 - 09/30/1997 $21,400 $20,170 $22,734 $23,140
10/01/1997 - 10/31/1997 $20,983 $19,776 $21,974 $22,283
11/01/1997 - 11/30/1997 $21,467 $20,233 $22,992 $23,230
12/01/1997 - 12/31/1997 $21,772 $20,520 $23,387 $23,491
01/01/1998 - 01/31/1998 $21,968 $20,705 $23,647 $24,193
02/01/1998 - 02/28/1998 $23,414 $22,067 $25,352 $26,012
03/01/1998 - 03/31/1998 $24,620 $23,204 $26,650 $27,050
04/01/1998 - 04/30/1998 $25,082 $23,640 $26,919 $27,424
05/01/1998 - 05/31/1998 $24,197 $22,806 $26,456 $26,645
06/01/1998 - 06/30/1998 $24,979 $23,542 $27,530 $28,275
07/01/1998 - 07/31/1998 $24,604 $23,189 $27,238 $28,089
08/01/1998 - 08/31/1998 $20,532 $19,351 $23,300 $23,873
09/01/1998 - 09/30/1998 $22,057 $20,789 $24,793 $25,706
10/01/1998 - 10/31/1998 $24,073 $22,689 $26,809 $27,773
11/01/1998 - 11/30/1998 $25,371 $23,912 $28,434 $29,886
12/01/1998 - 12/31/1998 $27,332 $25,761 $30,071 $32,582
01/01/1999 - 01/31/1999 $28,529 $26,889 $31,328 $34,495
02/01/1999 - 02/28/1999 $27,374 $25,800 $30,354 $32,918
03/01/1999 - 03/31/1999 $28,931 $27,268 $31,568 $34,653
04/01/1999 - 04/30/1999 $29,481 $27,786 $32,790 $34,698
05/01/1999 - 05/31/1999 $28,665 $27,016 $32,016 $33,633
06/01/1999 - 06/30/1999 $30,909 $29,132 $33,793 $35,987
07/01/1999 - 07/31/1999 $29,935 $28,214 $32,739 $34,843
08/01/1999 - 08/31/1999 $29,522 $27,825 $32,578 $35,411
09/01/1999 - 09/30/1999 $29,236 $27,555 $31,685 $34,667
10/01/1999 - 10/31/1999 $30,666 $28,902 $33,691 $37,284
11/01/1999 - 11/30/1999 $31,831 $30,001 $34,375 $39,298
12/01/1999 - 12/31/1999 $34,441 $32,461 $36,400 $43,385
01/01/2000 - 01/31/2000 $33,160 $31,253 $34,572 $41,350
02/01/2000 - 02/29/2000 $34,082 $32,122 $33,919 $43,372
03/01/2000 - 03/31/2000 $37,507 $35,350 $37,236 $46,477
04/01/2000 - 04/30/2000 $36,910 $34,788 $36,116 $44,265
05/01/2000 - 05/31/2000 $35,541 $33,497 $35,375 $42,034
06/01/2000 - 06/30/2000 $36,632 $34,526 $36,249 $45,220
07/01/2000 - 07/31/2000 $36,240 $34,156 $35,683 $43,335
08/01/2000 - 08/31/2000 $38,915 $36,677 $37,899 $47,256
09/01/2000 - 09/30/2000 $36,938 $34,814 $35,898 $42,786
10/01/2000 - 10/31/2000 $36,299 $34,212 $35,748 $40,762
11/01/2000 - 11/30/2000 $32,818 $30,931 $32,931 $34,754
12/01/2000 - 12/31/2000 $33,953 $32,001 $33,092 $33,656
01/01/2001 - 01/31/2001 $34,772 $32,772 $34,267 $35,981
02/01/2001 - 02/28/2001 $31,228 $29,433 $31,142 $29,872
03/01/2001 - 03/31/2001 $28,643 $26,996 $29,167 $26,622
04/01/2001 - 04/30/2001 $30,716 $28,950 $31,434 $29,989
05/01/2001 - 05/31/2001 $30,858 $29,083 $31,644 $29,548
06/01/2001 - 06/30/2001 $29,528 $27,830 $30,875 $28,863
07/01/2001 - 07/31/2001 $29,040 $27,371 $30,573 $28,141
08/01/2001 - 08/31/2001 $27,083 $25,526 $28,659 $25,839
09/01/2001 - 09/30/2001 $24,461 $23,055 $26,343 $23,261
10/01/2001 - 10/31/2001 $25,254 $23,802 $26,846 $24,482
11/01/2001 - 11/30/2001 $27,148 $25,587 $28,905 $26,834
12/01/2001 - 12/31/2001 $27,572 $25,986 $29,160 $26,783
01/01/2002 - 01/31/2002 $26,587 $25,059 $28,734 $26,309
02/01/2002 - 02/28/2002 $25,718 $24,239 $28,179 $25,218
03/01/2002 - 03/31/2002 $27,420 $25,844 $29,239 $26,090
04/01/2002 - 04/30/2002 $25,731 $24,252 $27,467 $23,961
05/01/2002 - 05/31/2002 $25,129 $23,684 $27,264 $23,381
06/01/2002 - 06/30/2002 $22,903 $21,586 $25,323 $21,219
07/01/2002 - 07/31/2002 $21,215 $19,995 $23,350 $20,052
08/01/2002 - 08/31/2002 $21,368 $20,139 $23,502 $20,112
09/01/2002 - 09/30/2002 $19,000 $17,908 $20,947 $18,026
10/01/2002 - 10/31/2002 $20,549 $19,367 $22,791 $19,679
11/01/2002 - 11/30/2002 $21,648 $20,403 $24,133 $20,748
12/01/2002 - 12/31/2002 $20,161 $19,001 $22,716 $19,314
01/01/2003 - 01/31/2003 $19,634 $18,506 $22,121 $18,845
02/01/2003 - 02/28/2003 $19,430 $18,313 $21,789 $18,758
03/01/2003 - 03/31/2003 $19,636 $18,507 $22,001 $19,107
04/01/2003 - 04/30/2003 $21,123 $19,908 $23,814 $20,519
05/01/2003 - 05/31/2003 $22,263 $20,983 $25,068 $21,543
06/01/2003 - 06/30/2003 $22,352 $21,067 $25,389 $21,840
07/1/2003 - 07/31/2003 $22,558 $21,261 $25,836 $22,384
08/1/2003 - 08/31/2003 $23,136 $21,805 $26,340 $22,941
09/1/2003 - 09/30/2003 $22,534 $21,235 $26,052 $22,694
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 above illustration assumes a $10,000
investment made on October 1, 1993, and reinvestment of income and capital
gains distributions. On October 13, 2003, the fund's primary benchmark was
changed to the Russell 1000 Growth Index. During the reporting period, the
fund's primary benchmark was the S&P 500 Index. The Standard & Poor's (S&P) 500
Index is an unmanaged index that tracks the performance of 500 widely held,
large-capitalization US stocks. The Russell 1000 Growth Index is an unmanaged
index that measures performance of those Russell 1000 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 9/30/03 (%)
SHARE CLASS A B C G T Z
INCEPTION 11/1/98 11/1/98 11/18/02 3/4/96 12/14/90 12/14/90
- ------------------------------------------------------------------------------------------------
without with without with without with without with without with without
sales sales sales sales sales sales sales sales sales sales sales
charge charge charge charge charge charge charge charge charge charge charge
- ------------------------------------------------------------------------------------------------
11-month
(cumulative) 9.72 3.41 8.93 3.93 9.06 8.06 8.66 3.66 9.51 3.24 9.93
- ------------------------------------------------------------------------------------------------
1-year 18.66 11.81 17.70 12.70 17.83 16.83 17.44 12.44 18.40 11.61 18.99
- ------------------------------------------------------------------------------------------------
5-year 0.44 -0.75 -0.29 -0.60 -0.27 -0.27 -0.48 -0.94 0.29 -0.89 0.72
- ------------------------------------------------------------------------------------------------
10-year 8.46 7.82 8.07 8.07 8.08 8.08 7.73 7.73 8.39 7.74 8.80
- ------------------------------------------------------------------------------------------------
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. The graph and
table do not reflect the deduction of taxes that a shareholder would pay on
fund distributions or the redemptions of fund shares. The "with sales charge"
returns include the maximum initial sales charge of 5.75% for class A shares,
the appropriate class B contingent deferred sales charge (CDSC) for the holding
period after purchase as follows: through first year-5%, second year-4%, third
year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the
class C CDSC of 1.00% that is applied to shares sold within the first year
after they are purchased. After holding class C shares for one year, you may
sell them at any time without paying a CDSC. For class G shares, the CDSC for
the holding period after purchase is as follows: through the first year-5%,
second year-4%, third year-4%, fourth year-4%, fifth year-3%, sixth year-2%,
seventh year-1%, thereafter-0%. For the class T shares, the "with sales charge"
returns include the maximum 5.75% charge. 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 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 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 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
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 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 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 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 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 Fund were initially offered on December
14, 1990.
5
-----------------------------------------------------------------------------
Performance Information - Columbia Disciplined Value Fund
PERFORMANCE OF A $10,000 INVESTMENT ($)
WITHOUT WITH
10/01/93 - 9/30/03 SALES CHARGE SALES CHARGE
--------------------------------------------
Class A 22,070 20,798
--------------------------------------------
Class B 20,913 20,913
--------------------------------------------
Class C 20,874 20,874
--------------------------------------------
Class G 20,933 20,933
--------------------------------------------
Class T 22,030 20,761
--------------------------------------------
Class Z 22,831 n/a
--------------------------------------------
[CHART]
Class A shares Class A shares
without with Russell 1000
sales charge sales charge S&P 500 Index Value Index
-------------- -------------- ------------- ------------
$10,000 $9,425 $10,000 $10,000
10/01/1993 - 10/31/1993 $10,031 $9,454 $10,207 $9,992
11/01/1993 - 11/30/1993 $9,932 $9,361 $10,110 $9,784
12/01/1993 - 12/31/1993 $10,065 $9,486 $10,232 $9,971
01/01/1994 - 01/31/1994 $10,425 $9,826 $10,580 $10,346
02/01/1994 - 02/28/1994 $10,276 $9,685 $10,292 $9,993
03/01/1994 - 03/31/1994 $9,894 $9,325 $9,844 $9,620
04/01/1994 - 04/30/1994 $9,972 $9,399 $9,970 $9,805
05/01/1994 - 05/31/1994 $10,051 $9,473 $10,133 $9,919
06/01/1994 - 06/30/1994 $9,853 $9,286 $9,885 $9,681
07/01/1994 - 07/31/1994 $10,081 $9,502 $10,209 $9,982
08/01/1994 - 08/31/1994 $10,633 $10,021 $10,628 $10,269
09/01/1994 - 09/30/1994 $10,385 $9,788 $10,367 $9,929
10/01/1994 - 10/31/1994 $10,527 $9,922 $10,601 $10,067
11/01/1994 - 11/30/1994 $10,322 $9,728 $10,215 $9,662
12/01/1994 - 12/31/1994 $10,417 $9,818 $10,366 $9,774
01/01/1995 - 01/31/1995 $10,558 $9,950 $10,634 $10,075
02/01/1995 - 02/28/1995 $10,900 $10,273 $11,049 $10,474
03/01/1995 - 03/31/1995 $11,135 $10,495 $11,375 $10,704
04/01/1995 - 04/30/1995 $11,268 $10,620 $11,710 $11,043
05/01/1995 - 05/31/1995 $11,778 $11,101 $12,178 $11,506
06/01/1995 - 06/30/1995 $12,082 $11,387 $12,460 $11,662
07/01/1995 - 07/31/1995 $12,338 $11,629 $12,874 $12,067
08/01/1995 - 08/31/1995 $12,400 $11,687 $12,906 $12,238
09/01/1995 - 09/30/1995 $12,780 $12,045 $13,451 $12,681
10/01/1995 - 10/31/1995 $12,718 $11,986 $13,403 $12,555
11/01/1995 - 11/30/1995 $13,383 $12,613 $13,991 $13,190
12/01/1995 - 12/31/1995 $13,309 $12,544 $14,261 $13,521
01/01/1996 - 01/31/1996 $13,742 $12,952 $14,746 $13,943
02/01/1996 - 02/29/1996 $13,992 $13,187 $14,883 $14,049
03/01/1996 - 03/31/1996 $14,024 $13,218 $15,026 $14,288
04/01/1996 - 04/30/1996 $14,275 $13,454 $15,247 $14,342
05/01/1996 - 05/31/1996 $14,642 $13,800 $15,640 $14,522
06/01/1996 - 06/30/1996 $14,597 $13,757 $15,700 $14,533
07/01/1996 - 07/31/1996 $14,027 $13,221 $15,006 $13,984
08/01/1996 - 08/31/1996 $14,510 $13,676 $15,322 $14,384
09/01/1996 - 09/30/1996 $15,218 $14,343 $16,185 $14,956
10/01/1996 - 10/31/1996 $15,451 $14,562 $16,632 $15,535
11/01/1996 - 11/30/1996 $16,642 $15,685 $17,889 $16,661
12/01/1996 - 12/31/1996 $16,118 $15,191 $17,535 $16,448
01/01/1997 - 01/31/1997 $16,872 $15,902 $18,631 $17,246
02/01/1997 - 02/28/1997 $16,806 $15,840 $18,776 $17,499
03/01/1997 - 03/31/1997 $16,048 $15,126 $18,004 $16,869
04/01/1997 - 04/30/1997 $16,945 $15,971 $19,079 $17,578
05/01/1997 - 05/31/1997 $18,237 $17,188 $20,241 $18,561
06/01/1997 - 06/30/1997 $18,552 $17,485 $21,148 $19,357
07/01/1997 - 07/31/1997 $20,285 $19,119 $22,831 $20,812
08/01/1997 - 08/31/1997 $19,683 $18,551 $21,553 $20,072
09/01/1997 - 09/30/1997 $20,645 $19,458 $22,734 $21,284
10/01/1997 - 10/31/1997 $20,007 $18,857 $21,974 $20,690
11/01/1997 - 11/30/1997 $20,457 $19,281 $22,992 $21,605
12/01/1997 - 12/31/1997 $20,576 $19,393 $23,387 $22,235
01/01/1998 - 01/31/1998 $20,856 $19,657 $23,647 $21,920
02/01/1998 - 02/28/1998 $22,533 $21,237 $25,352 $23,395
03/01/1998 - 03/31/1998 $23,673 $22,311 $26,650 $24,827
04/01/1998 - 04/30/1998 $23,886 $22,512 $26,919 $24,993
05/01/1998 - 05/31/1998 $22,966 $21,646 $26,456 $24,623
06/01/1998 - 06/30/1998 $23,637 $22,278 $27,530 $24,938
07/01/1998 - 07/31/1998 $22,850 $21,536 $27,238 $24,499
08/01/1998 - 08/31/1998 $19,107 $18,008 $23,300 $20,854
09/01/1998 - 09/30/1998 $20,026 $18,874 $24,793 $22,051
10/01/1998 - 10/31/1998 $21,984 $20,720 $26,809 $23,760
11/01/1998 - 11/30/1998 $23,583 $22,227 $28,434 $24,867
12/01/1998 - 12/31/1998 $25,462 $23,998 $30,071 $25,712
01/01/1999 - 01/31/1999 $26,509 $24,984 $31,328 $25,918
02/01/1999 - 02/28/1999 $25,295 $23,840 $30,354 $25,553
03/01/1999 - 03/31/1999 $26,081 $24,582 $31,568 $26,082
04/01/1999 - 04/30/1999 $26,840 $25,297 $32,790 $28,518
05/01/1999 - 05/31/1999 $26,454 $24,933 $32,016 $28,204
06/01/1999 - 06/30/1999 $27,999 $26,389 $33,793 $29,022
07/01/1999 - 07/31/1999 $26,882 $25,336 $32,739 $28,172
08/01/1999 - 08/31/1999 $25,613 $24,140 $32,578 $27,126
09/01/1999 - 09/30/1999 $24,552 $23,141 $31,685 $26,180
10/01/1999 - 10/31/1999 $25,201 $23,751 $33,691 $27,688
11/01/1999 - 11/30/1999 $25,339 $23,882 $34,375 $27,472
12/01/1999 - 12/31/1999 $27,164 $25,602 $36,400 $27,604
01/01/2000 - 01/31/2000 $25,474 $24,009 $34,572 $26,704
02/01/2000 - 02/29/2000 $24,931 $23,498 $33,919 $24,720
03/01/2000 - 03/31/2000 $28,003 $26,393 $37,236 $27,735
04/01/2000 - 04/30/2000 $27,541 $25,957 $36,116 $27,414
05/01/2000 - 05/31/2000 $27,334 $25,763 $35,375 $27,701
06/01/2000 - 06/30/2000 $25,883 $24,395 $36,249 $26,436
07/01/2000 - 07/31/2000 $25,438 $23,975 $35,683 $26,766
08/01/2000 - 08/31/2000 $27,796 $26,197 $37,899 $28,254
09/01/2000 - 09/30/2000 $26,728 $25,192 $35,898 $28,514
10/01/2000 - 10/31/2000 $27,175 $25,612 $35,748 $29,216
11/01/2000 - 11/30/2000 $24,721 $23,299 $32,931 $28,132
12/01/2000 - 12/31/2000 $26,296 $24,784 $33,092 $29,541
01/01/2001 - 01/31/2001 $28,988 $27,321 $34,267 $29,653
02/01/2001 - 02/28/2001 $26,881 $25,335 $31,142 $28,829
03/01/2001 - 03/31/2001 $26,042 $24,545 $29,167 $27,811
04/01/2001 - 04/30/2001 $28,230 $26,606 $31,434 $29,174
05/01/2001 - 05/31/2001 $28,797 $27,141 $31,644 $29,830
06/01/2001 - 06/30/2001 $27,841 $26,240 $30,875 $29,168
07/01/2001 - 07/31/2001 $28,250 $26,626 $30,573 $29,107
08/01/2001 - 08/31/2001 $26,787 $25,247 $28,659 $27,940
09/01/2001 - 09/30/2001 $23,291 $21,952 $26,343 $25,973
10/01/2001 - 10/31/2001 $24,384 $22,982 $26,846 $25,749
11/01/2001 - 11/30/2001 $26,571 $25,043 $28,905 $27,245
12/01/2001 - 12/31/2001 $27,559 $25,975 $29,160 $27,888
01/01/2002 - 01/31/2002 $27,058 $25,502 $28,734 $27,674
02/01/2002 - 02/28/2002 $25,835 $24,349 $28,179 $27,718
03/01/2002 - 03/31/2002 $27,697 $26,105 $29,239 $29,029
04/01/2002 - 04/30/2002 $26,276 $24,766 $27,467 $28,033
05/01/2002 - 05/31/2002 $26,276 $24,766 $27,264 $28,174
06/01/2002 - 06/30/2002 $23,533 $22,180 $25,323 $26,556
07/01/2002 - 07/31/2002 $21,229 $20,009 $23,350 $24,087
08/01/2002 - 08/31/2002 $21,070 $19,859 $23,502 $24,270
09/01/2002 - 09/30/2002 $18,506 $17,442 $20,947 $21,571
10/01/2002 - 10/31/2002 $19,187 $18,084 $22,791 $23,169
11/01/2002 - 11/30/2002 $20,328 $19,160 $24,133 $24,629
12/01/2002 - 12/31/2002 $19,367 $18,253 $22,716 $23,560
01/01/2003 - 01/31/2003 $19,107 $18,009 $22,121 $22,990
02/01/2003 - 02/28/2003 $18,387 $17,330 $21,789 $22,376
03/01/2003 - 03/31/2003 $18,468 $17,406 $22,001 $22,414
04/01/2003 - 04/30/2003 $20,010 $18,859 $23,814 $24,387
05/01/2003 - 05/31/2003 $21,313 $20,087 $25,068 $25,962
06/01/2003 - 06/30/2003 $21,654 $20,409 $25,389 $26,286
07/01/2003 - 07/31/2003 $21,914 $20,654 $25,836 $26,678
08/01/2003 - 08/31/2003 $22,354 $21,069 $26,340 $27,094
09/01/2003 - 09/30/2003 $22,070 $20,798 $26,052 $26,825
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 above illustration assumes a $10,000
investment made on October 1, 1993, and reinvestment of income and capital
gains distributions. On October 13, 2003, the fund's primary benchmark was
changed to the Russell 1000 Value Index. During the reporting period, the
fund's primary benchmark was the S&P 500 Index. The Standard & Poor's (S&P) 500
Index is an unmanaged index that tracks the performance of 500 widely held,
large-capitalization US stocks. The Russell 1000 Value Index is an unmanaged
index that measures the performance of those Russell 1000 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 9/30/03 (%)
SHARE CLASS A B C G T Z
INCEPTION 11/25/02 11/25/02 11/25/02 3/4/96 9/1/88 9/1/88
- -----------------------------------------------------------------------------------------------
without with without with without with without with without with without
sales sales sales sales sales sales sales sales sales sales sales
charge charge charge charge charge charge charge charge charge charge charge
- -----------------------------------------------------------------------------------------------
11-month
(cumulative) 15.03 8.46 13.90 8.90 13.68 12.68 14.01 9.01 14.82 8.27 15.28
- -----------------------------------------------------------------------------------------------
1-year 19.26 12.45 18.13 13.13 17.91 16.91 18.24 13.24 19.05 12.24 19.57
- -----------------------------------------------------------------------------------------------
5-year 1.96 0.76 1.16 0.89 1.12 1.12 1.18 0.77 1.93 0.72 2.33
- -----------------------------------------------------------------------------------------------
10-year 8.24 7.60 7.66 7.66 7.64 7.64 7.67 7.67 8.22 7.58 8.61
- -----------------------------------------------------------------------------------------------
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. The graph and
table do not reflect the deduction of taxes that a shareholder would pay on
fund distributions or the redemptions of fund shares. The "with sales charge"
returns include the maximum initial sales charge of 5.75% for class A shares,
the appropriate class B contingent deferred sales charge (CDSC) for the holding
period after purchase as follows: through first year-5%, second year-4%, third
year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the
class C CDSC of 1.00% that is applied to shares sold within the first year
after they are purchased. After holding class C shares for one year, you may
sell them at any time without paying a CDSC. For class G shares, the CDSC for
the holding period after purchase is as follows: through the first year-5%,
second year-4%, third year-4%, fourth year-4%, fifth year-3%, sixth year-2%,
seventh year-1%, thereafter-0%. For the class T shares, the "with sales charge"
returns include the maximum 5.75% charge. 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 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 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 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 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 Fund
for periods prior to November 25, 2002, the date on which Class Z shares were
initially offered by the Fund.
6
-----------------------------------------------------------------------------
Performance Information - Columbia International Equity Fund
PERFORMANCE OF A $10,000 INVESTMENT ($)
WITHOUT WITH
10/01/93 - 9/30/03 SALES CHARGE SALES CHARGE
--------------------------------------------
Class A 13,965 13,161
--------------------------------------------
Class B 13,587 13,587
--------------------------------------------
Class C 13,536 13,536
--------------------------------------------
Class G 13,373 13,373
--------------------------------------------
Class T 13,824 13,028
--------------------------------------------
Class Z 14,532 n/a
--------------------------------------------
[CHART]
Class A shares Class A shares MSCI All
without with Country World
sales charge sales charge Free ex US Index MSCI EAFE Index
------------------- ------------------- ---------------- ---------------
$10,000 $ 9,425 $10,000 $10,000
10/01/1993 - 10/31/1993 10,439 9,839 10,362 10,308
11/01/1993 - 11/30/1993 9,991 9,417 9,572 9,407
12/01/1993 - 12/31/1993 10,998 10,366 10,319 10,086
01/01/1994 - 01/31/1994 11,498 10,836 11,167 10,939
02/01/1994 - 02/28/1994 11,222 10,576 11,082 10,908
03/01/1994 - 03/31/1994 10,731 10,114 10,575 10,438
04/01/1994 - 04/30/1994 10,904 10,277 10,933 10,880
05/01/1994 - 05/31/1994 10,947 10,317 10,937 10,818
06/01/1994 - 06/30/1994 10,920 10,292 11,014 10,971
07/01/1994 - 07/31/1994 11,093 10,455 11,194 11,076
08/01/1994 - 08/31/1994 11,386 10,731 11,570 11,339
09/01/1994 - 09/30/1994 11,110 10,471 11,283 10,982
10/01/1994 - 10/31/1994 11,369 10,715 11,586 11,347
11/01/1994 - 11/30/1994 10,774 10,155 11,028 10,801
12/01/1994 - 12/31/1994 10,718 10,102 11,003 10,869
01/01/1995 - 01/31/1995 10,229 9,640 10,503 10,452
02/01/1995 - 02/28/1995 10,185 9,599 10,446 10,422
03/01/1995 - 03/31/1995 10,665 10,052 11,037 11,072
04/01/1995 - 04/30/1995 11,015 10,382 11,467 11,488
05/01/1995 - 05/31/1995 11,111 10,472 11,415 11,352
06/01/1995 - 06/30/1995 11,007 10,374 11,258 11,153
07/01/1995 - 07/31/1995 11,627 10,959 11,896 11,848
08/01/1995 - 08/31/1995 11,277 10,629 11,483 11,396
09/01/1995 - 09/30/1995 11,400 10,745 11,680 11,619
10/01/1995 - 10/31/1995 11,295 10,646 11,368 11,306
11/01/1995 - 11/30/1995 11,548 10,884 11,635 11,620
12/01/1995 - 12/31/1995 11,902 11,217 12,096 12,089
01/01/1996 - 01/31/1996 12,153 11,454 12,262 12,138
02/01/1996 - 02/29/1996 12,251 11,547 12,262 12,180
03/01/1996 - 03/31/1996 12,485 11,767 12,491 12,438
04/01/1996 - 04/30/1996 12,862 12,123 12,869 12,800
05/01/1996 - 05/31/1996 12,709 11,978 12,676 12,564
06/01/1996 - 06/30/1996 12,745 12,012 12,741 12,635
07/01/1996 - 07/31/1996 12,305 11,598 12,318 12,266
08/01/1996 - 08/31/1996 12,234 11,530 12,391 12,293
09/01/1996 - 09/30/1996 12,584 11,860 12,698 12,620
10/01/1996 - 10/31/1996 12,521 11,801 12,571 12,491
11/01/1996 - 11/30/1996 13,050 12,300 13,056 12,988
12/01/1996 - 12/31/1996 13,095 12,342 12,905 12,821
01/01/1997 - 01/31/1997 13,142 12,386 12,667 12,372
02/01/1997 - 02/28/1997 13,267 12,504 12,899 12,575
03/01/1997 - 03/31/1997 13,372 12,603 12,872 12,620
04/01/1997 - 04/30/1997 13,572 12,792 12,981 12,687
05/01/1997 - 05/31/1997 14,404 13,576 13,782 13,513
06/01/1997 - 06/30/1997 15,456 14,567 14,543 14,257
07/01/1997 - 07/31/1997 16,258 15,323 14,837 14,488
08/01/1997 - 08/31/1997 14,834 13,981 13,669 13,406
09/01/1997 - 09/30/1997 16,133 15,205 14,409 14,157
10/01/1997 - 10/31/1997 14,508 13,674 13,181 13,068
11/01/1997 - 11/30/1997 14,461 13,629 13,016 12,935
12/01/1997 - 12/31/1997 14,873 14,017 13,166 13,047
01/01/1998 - 01/31/1998 15,188 14,315 13,560 13,644
02/01/1998 - 02/28/1998 16,379 15,437 14,464 14,520
03/01/1998 - 03/31/1998 17,255 16,263 14,965 14,967
04/01/1998 - 04/30/1998 17,571 16,560 15,072 15,085
05/01/1998 - 05/31/1998 17,934 16,903 14,798 15,011
06/01/1998 - 06/30/1998 18,053 17,015 14,743 15,125
07/01/1998 - 07/31/1998 18,437 17,377 14,883 15,278
08/01/1998 - 08/31/1998 16,193 15,262 12,785 13,385
09/01/1998 - 09/30/1998 15,416 14,530 12,515 12,974
10/01/1998 - 10/31/1998 16,489 15,541 13,827 14,326
11/01/1998 - 11/30/1998 17,612 16,599 14,569 15,059
12/01/1998 - 12/31/1998 18,186 17,141 15,070 15,653
01/01/1999 - 01/31/1999 19,006 17,914 15,054 15,606
02/01/1999 - 02/28/1999 18,360 17,305 14,717 15,234
03/01/1999 - 03/31/1999 18,669 17,595 15,427 15,870
04/01/1999 - 04/30/1999 19,376 18,262 16,199 16,512
05/01/1999 - 05/31/1999 18,700 17,625 15,437 15,662
06/01/1999 - 06/30/1999 19,469 18,349 16,147 16,273
07/01/1999 - 07/31/1999 19,848 18,707 16,525 16,756
08/01/1999 - 08/31/1999 20,372 19,201 16,583 16,818
09/01/1999 - 09/30/1999 20,690 19,500 16,694 16,988
10/01/1999 - 10/31/1999 21,522 20,284 17,315 17,625
11/01/1999 - 11/30/1999 22,753 21,444 18,008 18,237
12/01/1999 - 12/31/1999 25,745 24,264 19,726 19,874
01/01/2000 - 01/31/2000 24,548 23,136 18,655 18,612
02/01/2000 - 02/29/2000 26,428 24,908 19,158 19,113
03/01/2000 - 03/31/2000 26,362 24,846 19,879 19,854
04/01/2000 - 04/30/2000 23,960 22,583 18,770 18,810
05/01/2000 - 05/31/2000 23,112 21,783 18,289 18,351
06/01/2000 - 06/30/2000 23,873 22,500 19,068 19,069
07/01/2000 - 07/31/2000 23,101 21,773 18,315 18,270
08/01/2000 - 08/31/2000 23,416 22,069 18,542 18,429
09/01/2000 - 09/30/2000 22,046 20,778 17,513 17,531
10/01/2000 - 10/31/2000 21,230 20,009 16,956 17,117
11/01/2000 - 11/30/2000 20,111 18,955 16,196 16,476
12/01/2000 - 12/31/2000 20,564 19,381 16,749 17,060
01/01/2001 - 01/31/2001 20,716 19,525 17,000 17,052
02/01/2001 - 02/28/2001 18,883 17,797 15,654 15,773
03/01/2001 - 03/31/2001 17,480 16,475 14,547 14,721
04/01/2001 - 04/30/2001 18,541 17,475 15,536 15,744
05/01/2001 - 05/31/2001 17,719 16,700 15,107 15,188
06/01/2001 - 06/30/2001 16,936 15,962 14,529 14,567
07/01/2001 - 07/31/2001 16,494 15,546 14,205 14,302
08/01/2001 - 08/31/2001 15,659 14,759 13,852 13,940
09/01/2001 - 09/30/2001 13,815 13,020 12,383 12,528
10/01/2001 - 10/31/2001 14,144 13,330 12,729 12,849
11/01/2001 - 11/30/2001 14,876 14,021 13,311 13,323
12/01/2001 - 12/31/2001 14,942 14,083 13,483 13,401
01/01/2002 - 01/31/2002 14,210 13,392 12,906 15,782
02/01/2002 - 02/28/2002 14,518 13,683 12,999 12,778
03/01/2002 - 03/31/2002 15,223 14,348 13,689 13,531
04/01/2002 - 04/30/2002 15,172 14,299 13,794 13,558
05/01/2002 - 05/31/2002 15,120 14,251 13,945 13,730
06/01/2002 - 06/30/2002 14,491 13,658 13,342 13,184
07/01/2002 - 07/31/2002 12,874 12,134 12,041 11,882
08/01/2002 - 08/31/2002 12,592 11,868 12,043 11,855
09/01/2002 - 09/30/2002 11,450 10,791 10,766 10,582
10/01/2002 - 10/31/2002 11,912 11,227 11,343 11,150
11/01/2002 - 11/30/2002 12,310 11,602 11,889 11,656
12/01/2002 - 12/31/2002 11,967 11,279 11,506 11,265
01/01/2003 - 01/31/2003 11,438 10,780 11,102 10,795
02/01/2003 - 02/28/2003 11,296 10,647 10,877 10,548
03/01/2003 - 03/31/2003 11,258 10,610 10,666 10,341
04/01/2003 - 04/30/2003 12,045 11,352 11,694 11,354
05/01/2003 - 05/31/2003 12,702 11,972 12,439 12,043
06/01/2003 - 06/30/2003 12,973 12,227 12,783 12,334
07/01/2003 - 07/31/2003 13,333 12,567 13,123 12,632
08/01/2003 - 08/31/2003 13,681 12,895 13,514 12,937
09/01/2003 - 09/30/2003 13,965 13,161 13,897 13,337
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 above illustration assumes a $10,000
investment made on October 1, 1993 and reinvestment of income and capital gains
distributions. The Morgan Stanley Capital International (MSCI) All Country
World Free ex US Index is an unmanaged index of global stock market performance
that includes developed and emerging markets but excludes the United States.
The fund's primary benchmark used to be the MSCI Europe Australasia and Far
East (EAFE) Index. This index is now the fund's secondary index. The MSCI EAFE
Index is an unmanaged index that tracks the performance of selected stocks in
Europe, Australia, Asia and the Far East. 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 9/30/03 (%)
SHARE CLASS A B C G T Z
INCEPTION 11/1/98 11/1/98 11/18/02 11/1/98 12/30/91 12/30/91
- ------------------------------------------------------------------------------------------------
without with without with without with without with without with without
sales sales sales sales sales sales sales sales sales sales sales
charge charge charge charge charge charge charge charge charge charge charge
- ------------------------------------------------------------------------------------------------
11-month
(cumulative) 17.23 10.45 16.71 11.71 16.27 15.27 16.48 11.48 17.45 10.74 18.08
- ------------------------------------------------------------------------------------------------
1-year 21.96 15.00 21.31 16.31 20.86 19.86 20.98 15.98 22.07 15.08 22.77
- ------------------------------------------------------------------------------------------------
5-year -1.96 -3.12 -2.50 -2.80 -2.57 -2.57 -2.80 -3.27 -2.16 -3.32 -1.64
- ------------------------------------------------------------------------------------------------
10-year 3.40 2.78 3.11 3.11 3.07 3.07 2.95 2.95 3.29 2.68 3.81
- ------------------------------------------------------------------------------------------------
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. The graph and
table do not reflect the deduction of taxes that a shareholder would pay on
fund distributions or the redemptions of fund shares. The "with sales charge"
returns include the maximum initial sales charge of 5.75% for class A shares,
the appropriate class B contingent deferred sales charge (CDSC) for the holding
period after purchase as follows: through first year-5%, second year-4%, third
year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the
class C CDSC of 1.00% that is applied to shares sold within the first year
after they are purchased. After holding class C shares for one year, you may
sell them at any time without paying a CDSC. For class G shares, the CDSC for
the holding period after purchase is as follows: through the first year-5%,
second year-4%, third year-4%, fourth year-4%, fifth year-3%, sixth year-2%,
seventh year-1%, thereafter-0%. For the class T shares, the "with sales charge"
returns include the maximum 5.75% charge. 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 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 Fund (adjusted, as necessary, to reflect the sales charge
applicable to Class A shares and Class B shares, respectively) for periods
prior to the date of 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 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 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
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 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 charges
applicable to Class T and Class G shares) for periods prior to the inception of
Retail B Shares of the Galaxy Fund (November 1, 1998). Retail A Shares of the
Galaxy 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 Fund for periods prior to
November 18, 2002, the date on which Class Z shares were initially offered by
the Fund.
7
-----------------------------------------------------------------------------
Performance Information - Columbia Large Cap Core Fund
PERFORMANCE OF A $10,000 INVESTMENT ($)
WITHOUT WITH
10/01/93 - 9/30/03 SALES CHARGE SALES CHARGE
--------------------------------------------
Class A 22,120 20,844
--------------------------------------------
Class B 21,326 21,326
--------------------------------------------
Class C 21,326 21,326
--------------------------------------------
Class G 20,769 20,769
--------------------------------------------
Class T 21,978 20,709
--------------------------------------------
Class Z 22,674 n/a
--------------------------------------------
[CHART]
Class A shares without sales charge Class A shares with sales charge S&P 500 Index
----------------------------------- -------------------------------- --------
$10,000 $9,425 $10,000
10/01/1993 - 10/31/1993 $10,230 $9,642 $10,207
11/01/1993 - 11/30/1993 $10,201 $9,615 $10,110
12/01/1993 - 12/31/1993 $10,404 $9,806 $10,232
01/01/1994 - 01/31/1994 $10,690 $10,076 $10,580
02/01/1994 - 02/28/1994 $10,483 $9,880 $10,292
03/01/1994 - 03/31/1994 $10,160 $9,576 $9,844
04/01/1994 - 04/30/1994 $10,319 $9,725 $9,970
05/01/1994 - 05/31/1994 $10,596 $9,987 $10,133
06/01/1994 - 06/30/1994 $10,466 $9,864 $9,885
07/01/1994 - 07/31/1994 $10,724 $10,108 $10,209
08/01/1994 - 08/31/1994 $11,122 $10,483 $10,628
09/01/1994 - 09/30/1994 $10,951 $10,321 $10,367
10/01/1994 - 10/31/1994 $11,161 $10,520 $10,601
11/01/1994 - 11/30/1994 $10,841 $10,218 $10,215
12/01/1994 - 12/31/1994 $10,906 $10,279 $10,366
01/01/1995 - 01/31/1995 $11,159 $10,517 $10,634
02/01/1995 - 02/28/1995 $11,517 $10,855 $11,049
03/01/1995 - 03/31/1995 $11,814 $11,135 $11,375
04/01/1995 - 04/30/1995 $12,047 $11,354 $11,710
05/01/1995 - 05/31/1995 $12,493 $11,775 $12,178
06/01/1995 - 06/30/1995 $12,720 $11,989 $12,460
07/01/1995 - 07/31/1995 $13,029 $12,280 $12,874
08/01/1995 - 08/31/1995 $12,955 $12,210 $12,906
09/01/1995 - 09/30/1995 $13,399 $12,629 $13,451
10/01/1995 - 10/31/1995 $13,228 $12,467 $13,403
11/01/1995 - 11/30/1995 $13,825 $13,030 $13,991
12/01/1995 - 12/31/1995 $14,105 $13,294 $14,261
01/01/1996 - 01/31/1996 $14,414 $13,585 $14,746
02/01/1996 - 02/29/1996 $14,586 $13,747 $14,883
03/01/1996 - 03/31/1996 $14,886 $14,030 $15,026
04/01/1996 - 04/30/1996 $15,160 $14,288 $15,247
05/01/1996 - 05/31/1996 $15,446 $14,558 $15,640
06/01/1996 - 06/30/1996 $15,337 $14,455 $15,700
07/01/1996 - 07/31/1996 $14,728 $13,881 $15,006
08/01/1996 - 08/31/1996 $15,154 $14,282 $15,322
09/01/1996 - 09/30/1996 $15,735 $14,831 $16,185
10/01/1996 - 10/31/1996 $15,909 $14,994 $16,632
11/01/1996 - 11/30/1996 $17,132 $16,147 $17,889
12/01/1996 - 12/31/1996 $16,906 $15,934 $17,535
01/01/1997 - 01/31/1997 $17,727 $16,708 $18,631
02/01/1997 - 02/28/1997 $17,765 $16,743 $18,776
03/01/1997 - 03/31/1997 $17,248 $16,256 $18,004
04/01/1997 - 04/30/1997 $17,919 $16,888 $19,079
05/01/1997 - 05/31/1997 $19,008 $17,915 $20,241
06/01/1997 - 06/30/1997 $19,702 $18,569 $21,148
07/01/1997 - 07/31/1997 $21,061 $19,850 $22,831
08/01/1997 - 08/31/1997 $20,337 $19,167 $21,553
09/01/1997 - 09/30/1997 $21,254 $20,032 $22,734
10/01/1997 - 10/31/1997 $20,693 $19,503 $21,974
11/01/1997 - 11/30/1997 $21,343 $20,115 $22,992
12/01/1997 - 12/31/1997 $21,838 $20,582 $23,387
01/01/1998 - 01/31/1998 $21,761 $20,510 $23,647
02/01/1998 - 02/28/1998 $23,374 $22,030 $25,352
03/01/1998 - 03/31/1998 $24,482 $23,074 $26,650
04/01/1998 - 04/30/1998 $24,680 $23,261 $26,919
05/01/1998 - 05/31/1998 $24,085 $22,700 $26,456
06/01/1998 - 06/30/1998 $24,213 $22,821 $27,530
07/01/1998 - 07/31/1998 $23,617 $22,259 $27,238
08/01/1998 - 08/31/1998 $19,966 $18,818 $23,300
09/01/1998 - 09/30/1998 $20,942 $19,738 $24,793
10/01/1998 - 10/31/1998 $22,748 $21,440 $26,809
11/01/1998 - 11/30/1998 $24,001 $22,621 $28,434
12/01/1998 - 12/31/1998 $25,302 $23,847 $30,071
01/01/1999 - 01/31/1999 $25,611 $24,138 $31,328
02/01/1999 - 02/28/1999 $25,106 $23,662 $30,354
03/01/1999 - 03/31/1999 $26,085 $24,585 $31,568
04/01/1999 - 04/30/1999 $27,110 $25,551 $32,790
05/01/1999 - 05/31/1999 $27,127 $25,567 $32,016
06/01/1999 - 06/30/1999 $28,638 $26,991 $33,793
07/01/1999 - 07/31/1999 $27,724 $26,130 $32,739
08/01/1999 - 08/31/1999 $26,665 $25,132 $32,578
09/01/1999 - 09/30/1999 $25,609 $24,137 $31,685
10/01/1999 - 10/31/1999 $26,116 $24,614 $33,691
11/01/1999 - 11/30/1999 $26,377 $24,861 $34,375
12/01/1999 - 12/31/1999 $27,068 $25,512 $36,400
01/01/2000 - 01/31/2000 $26,113 $24,611 $34,572
02/01/2000 - 02/29/2000 $25,609 $24,136 $33,919
03/01/2000 - 03/31/2000 $28,244 $26,620 $37,236
04/01/2000 - 04/30/2000 $28,278 $26,652 $36,116
05/01/2000 - 05/31/2000 $28,156 $26,537 $35,375
06/01/2000 - 06/30/2000 $27,438 $25,861 $36,249
07/01/2000 - 07/31/2000 $27,559 $25,974 $35,683
08/01/2000 - 08/31/2000 $29,403 $27,712 $37,899
09/01/2000 - 09/30/2000 $28,047 $26,435 $35,898
10/01/2000 - 10/31/2000 $28,535 $26,895 $35,748
11/01/2000 - 11/30/2000 $27,126 $25,566 $32,931
12/01/2000 - 12/31/2000 $28,108 $26,491 $33,092
01/01/2001 - 01/31/2001 $29,243 $27,562 $34,267
02/01/2001 - 02/28/2001 $27,766 $26,170 $31,142
03/01/2001 - 03/31/2001 $26,025 $24,529 $29,167
04/01/2001 - 04/30/2001 $27,769 $26,172 $31,434
05/01/2001 - 05/31/2001 $28,130 $26,513 $31,644
06/01/2001 - 06/30/2001 $27,517 $25,935 $30,875
07/01/2001 - 07/31/2001 $27,555 $25,971 $30,573
08/01/2001 - 08/31/2001 $26,056 $24,558 $28,659
09/01/2001 - 09/30/2001 $23,761 $22,395 $26,343
10/01/2001 - 10/31/2001 $24,160 $22,771 $26,846
11/01/2001 - 11/30/2001 $25,982 $24,488 $28,905
12/01/2001 - 12/31/2001 $26,468 $24,946 $29,160
01/01/2002 - 01/31/2002 $25,271 $23,818 $28,734
02/01/2002 - 02/28/2002 $24,900 $23,468 $28,179
03/01/2002 - 03/31/2002 $25,916 $24,425 $29,239
04/01/2002 - 04/30/2002 $24,542 $23,131 $27,467
05/01/2002 - 05/31/2002 $24,895 $23,464 $27,264
06/01/2002 - 06/30/2002 $22,819 $21,507 $25,323
07/01/2002 - 07/31/2002 $21,172 $19,954 $23,350
08/01/2002 - 08/31/2002 $20,996 $19,789 $23,502
09/01/2002 - 09/30/2002 $18,483 $17,420 $20,947
10/01/2002 - 10/31/2002 $19,778 $18,641 $22,791
11/01/2002 - 11/30/2002 $21,011 $19,802 $24,133
12/01/2002 - 12/31/2002 $19,857 $18,715 $22,716
01/01/2003 - 01/31/2003 $19,523 $18,401 $22,121
02/01/2003 - 02/28/2003 $18,953 $17,864 $21,789
03/01/2003 - 03/31/2003 $19,147 $18,046 $22,001
04/01/2003 - 04/30/2003 $20,585 $19,401 $23,814
05/01/2003 - 05/31/2003 $21,628 $20,385 $25,068
06/01/2003 - 06/30/2003 $21,741 $20,491 $25,389
07/01/2003 - 07/31/2003 $22,095 $20,825 $25,836
08/01/2003 - 08/31/2003 $22,588 $21,289 $26,340
09/01/2003 - 09/30/2003 $22,120 $20,844 $26,052
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 above illustration assumes a $10,000
investment made on October 1, 2003 and reinvestment of income and capital gains
distributions. The Standard and Poor's (S&P) 500 Index is an unmanaged index
that tracks the performance of 500 widely held, large-capitalizaiton US stocks.
Unlike mutual funds, indexes 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 9/30/03 (%)
SHARE CLASS A B C G T Z
INCEPTION 11/1/98 11/1/98 12/9/02 3/4/96 2/12/93 12/14/92
- ------------------------------------------------------------------------------------------------
without with without with without with without with without with without
sales sales sales sales sales sales sales sales sales sales sales
charge charge charge charge charge charge charge charge charge charge charge
- ------------------------------------------------------------------------------------------------
11-month
(cumulative) 11.82 5.43 11.12 6.12 11.12 10.12 11.00 6.00 11.76 5.37 12.20
- ------------------------------------------------------------------------------------------------
1-year 19.65 12.82 18.79 13.79 18.79 17.79 18.61 13.61 19.62 12.77 20.16
- ------------------------------------------------------------------------------------------------
5-year 1.10 -0.10 0.36 0.04 0.36 0.36 0.21 -0.26 0.97 -0.23 1.31
- ------------------------------------------------------------------------------------------------
10-year 8.26 7.62 7.87 7.87 7.87 7.87 7.58 7.58 8.19 7.55 8.53
- ------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. Returns and
value of an investment will vary, resulting in a gain or loss on sale. All
results shown assume reinvestment of distributions. The graph and table do not
reflect the deduction of taxes that a shareholder would pay on fund
distributions or the redemptions of fund shares. The "with sales charge"
returns include the maximum 5.75% charge for class A shares, the appropriate
class B contingent deferred sales charge for the holding period after purchase
as follows: through first year-5%, second year-4%, third year-3%, fourth
year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the class C sales
charge of 1% which also carry a CDSC of 1.00% that is applied to shares sold
within the first year after they are purchased. For Class G shares, the CDSC
for the holding period after purchase is as follows: through first year-5%,
second year-4%, third year-4%, fifth year-4%, fifth year-3%, sixth year-2% and
seventh year-1%, thereafter-0%. For Class T shares, the "with sales charge"
returns include the maximum initial sales charge of 5.75%. After holding shares
for one year, you may sell them at any time without paying a CDSC. Class Z
shares are sold only at NAV with no 12b-1 fee. 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 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 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
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 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. Retail A Shares were initially
offered on February 12, 1993. 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 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 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 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.
8
-----------------------------------------------------------------------------
Performance Information - Columbia Small Cap Fund
PERFORMANCE OF A $10,000 INVESTMENT ($)
WITHOUT WITH
10/01/93 - 9/30/03 SALES CHARGE SALES CHARGE
--------------------------------------------
Class A 36,664 34,558
--------------------------------------------
Class B 35,220 35,220
--------------------------------------------
Class C 35,268 35,268
--------------------------------------------
Class G 35,006 35,006
--------------------------------------------
Class T 36,241 34,159
--------------------------------------------
Class Z 37,611 n/a
--------------------------------------------
[CHART]
Class A shares Class A shares
without with S&P SmallCap Russell
sales charge sales charge 600 Index 2000 Index
---------------- ---------------- ------------- ----------
$10,000 $9,425 $10,000 $10,000
10/01/1993 - 10/31/1993 $10,351 $9,756 $10,192 $10,257
11/01/1993 - 11/30/1993 $10,019 $9,443 $9,827 $9,920
12/01/1993 - 12/31/1993 $10,331 $9,737 $10,183 $10,259
01/01/1994 - 01/31/1994 $10,655 $10,042 $10,423 $10,581
02/01/1994 - 02/28/1994 $10,636 $10,024 $10,393 $10,543
03/01/1994 - 03/31/1994 $10,074 $9,495 $9,647 $9,986
04/01/1994 - 04/30/1994 $10,027 $9,450 $9,791 $10,045
05/01/1994 - 05/31/1994 $10,074 $9,494 $9,598 $9,933
06/01/1994 - 06/30/1994 $9,864 $9,297 $9,241 $9,595
07/01/1994 - 07/31/1994 $9,969 $9,396 $9,355 $9,752
08/01/1994 - 08/31/1994 $10,435 $9,835 $9,992 $10,295
09/01/1994 - 09/30/1994 $10,473 $9,871 $9,940 $10,261
10/01/1994 - 10/31/1994 $10,520 $9,915 $9,841 $10,221
11/01/1994 - 11/30/1994 $10,235 $9,646 $9,465 $9,808
12/01/1994 - 12/31/1994 $10,363 $9,767 $9,695 $10,072
01/01/1995 - 01/31/1995 $10,363 $9,767 $9,558 $9,945
02/01/1995 - 02/28/1995 $10,645 $10,033 $9,952 $10,359
03/01/1995 - 03/31/1995 $10,826 $10,203 $10,154 $10,537
04/01/1995 - 04/30/1995 $11,107 $10,468 $10,382 $10,771
05/01/1995 - 05/31/1995 $11,409 $10,753 $10,543 $10,957
06/01/1995 - 06/30/1995 $11,973 $11,284 $11,122 $11,525
07/01/1995 - 07/31/1995 $12,526 $11,806 $11,973 $12,189
08/01/1995 - 08/31/1995 $12,798 $12,062 $12,233 $12,441
09/01/1995 - 09/30/1995 $13,129 $12,374 $12,545 $12,664
10/01/1995 - 10/31/1995 $12,756 $12,023 $11,925 $12,098
11/01/1995 - 11/30/1995 $13,248 $12,486 $12,397 $12,606
12/01/1995 - 12/31/1995 $13,625 $12,842 $12,602 $12,939
01/01/1996 - 01/31/1996 $13,453 $12,680 $12,630 $12,925
02/01/1996 - 02/29/1996 $13,905 $13,106 $13,043 $13,328
03/01/1996 - 03/31/1996 $14,309 $13,486 $13,322 $13,600
04/01/1996 - 04/30/1996 $15,193 $14,319 $14,086 $14,327
05/01/1996 - 05/31/1996 $15,764 $14,858 $14,587 $14,892
06/01/1996 - 06/30/1996 $15,365 $14,482 $14,015 $14,280
07/01/1996 - 07/31/1996 $14,480 $13,648 $13,051 $13,033
08/01/1996 - 08/31/1996 $15,215 $14,340 $13,858 $13,790
09/01/1996 - 09/30/1996 $15,863 $14,951 $14,467 $14,330
10/01/1996 - 10/31/1996 $15,917 $15,001 $14,367 $14,109
11/01/1996 - 11/30/1996 $16,585 $15,631 $15,113 $14,690
12/01/1996 - 12/31/1996 $17,267 $16,274 $15,289 $15,075
01/01/1997 - 01/31/1997 $17,517 $16,510 $15,543 $15,377
02/01/1997 - 02/28/1997 $17,454 $16,450 $15,221 $15,004
03/01/1997 - 03/31/1997 $16,880 $15,909 $14,441 $14,296
04/01/1997 - 04/30/1997 $16,704 $15,744 $14,617 $14,336
05/01/1997 - 05/31/1997 $18,467 $17,405 $16,333 $15,931
06/01/1997 - 06/30/1997 $19,678 $18,546 $17,055 $16,614
07/01/1997 - 07/31/1997 $21,040 $19,830 $18,127 $17,386
08/01/1997 - 08/31/1997 $21,690 $20,443 $18,584 $17,785
09/01/1997 - 09/30/1997 $23,351 $22,009 $19,813 $19,086
10/01/1997 - 10/31/1997 $22,852 $21,538 $18,957 $18,249
11/01/1997 - 11/30/1997 $22,628 $21,326 $18,818 $18,130
12/01/1997 - 12/31/1997 $22,659 $21,356 $19,198 $18,447
01/01/1998 - 01/31/1998 $22,276 $20,995 $18,824 $18,156
02/01/1998 - 02/28/1998 $23,559 $22,205 $20,539 $19,497
03/01/1998 - 03/31/1998 $25,046 $23,606 $21,324 $20,301
04/01/1998 - 04/30/1998 $25,164 $23,717 $21,449 $20,412
05/01/1998 - 05/31/1998 $23,850 $22,479 $20,315 $19,312
06/01/1998 - 06/30/1998 $23,201 $21,867 $20,374 $19,353
07/01/1998 - 07/31/1998 $21,666 $20,420 $18,815 $17,785
08/01/1998 - 08/31/1998 $18,713 $17,637 $15,184 $14,331
09/01/1998 - 09/30/1998 $19,506 $18,384 $16,113 $15,453
10/01/1998 - 10/31/1998 $19,994 $18,844 $16,861 $16,084
11/01/1998 - 11/30/1998 $20,969 $19,764 $17,810 $16,927
12/01/1998 - 12/31/1998 $21,441 $20,208 $18,948 $17,974
01/01/1999 - 01/31/1999 $21,555 $20,315 $18,709 $18,214
02/01/1999 - 02/28/1999 $20,305 $19,137 $17,024 $16,738
03/01/1999 - 03/31/1999 $19,789 $18,651 $17,243 $16,999
04/01/1999 - 04/30/1999 $21,188 $19,970 $18,383 $18,523
05/01/1999 - 05/31/1999 $21,968 $20,704 $18,830 $18,793
06/01/1999 - 06/30/1999 $23,048 $21,723 $19,901 $19,642
07/01/1999 - 07/31/1999 $23,097 $21,769 $19,726 $19,104
08/01/1999 - 08/31/1999 $22,136 $20,863 $18,858 $18,397
09/01/1999 - 09/30/1999 $22,092 $20,821 $18,937 $18,401
10/01/1999 - 10/31/1999 $21,246 $20,024 $18,890 $18,476
11/01/1999 - 11/30/1999 $22,174 $20,899 $19,679 $19,579
12/01/1999 - 12/31/1999 $23,737 $22,372 $21,297 $21,796
01/01/2000 - 01/31/2000 $23,448 $22,099 $20,637 $21,445
02/01/2000 - 02/29/2000 $23,919 $22,544 $23,400 $24,986
03/01/2000 - 03/31/2000 $24,751 $23,328 $22,534 $23,339
04/01/2000 - 04/30/2000 $24,660 $23,242 $22,149 $21,934
05/01/2000 - 05/31/2000 $24,534 $23,123 $21,493 $20,655
06/01/2000 - 06/30/2000 $24,995 $23,558 $22,764 $22,456
07/01/2000 - 07/31/2000 $24,615 $23,200 $22,206 $21,733
08/01/2000 - 08/31/2000 $26,082 $24,583 $24,173 $23,392
09/01/2000 - 09/30/2000 $26,521 $24,996 $23,516 $22,704
10/01/2000 - 10/31/2000 $25,977 $24,483 $23,664 $21,691
11/01/2000 - 11/30/2000 $25,234 $23,783 $21,201 $19,464
12/01/2000 - 12/31/2000 $27,773 $26,176 $23,812 $21,135
01/01/2001 - 01/31/2001 $28,545 $26,903 $24,834 $22,237
02/01/2001 - 02/28/2001 $28,796 $27,140 $23,319 $20,778
03/01/2001 - 03/31/2001 $28,419 $26,784 $22,249 $19,762
04/01/2001 - 04/30/2001 $29,712 $28,003 $23,944 $21,307
05/01/2001 - 05/31/2001 $31,025 $29,241 $24,401 $21,831
06/01/2001 - 06/30/2001 $31,906 $30,071 $25,295 $22,585
07/01/2001 - 07/31/2001 $31,427 $29,620 $24,872 $21,363
08/01/2001 - 08/31/2001 $31,261 $29,463 $24,305 $20,673
09/01/2001 - 09/30/2001 $28,463 $26,826 $21,019 $17,890
10/01/2001 - 10/31/2001 $29,320 $27,634 $22,139 $18,937
11/01/2001 - 11/30/2001 $30,885 $29,109 $23,760 $20,402
12/01/2001 - 12/31/2001 $32,893 $31,002 $25,368 $21,661
01/01/2002 - 01/31/2002 $32,962 $31,067 $25,589 $21,436
02/01/2002 - 02/28/2002 $33,601 $31,669 $25,149 $20,849
03/01/2002 - 03/31/2002 $36,199 $34,117 $27,136 $22,523
04/01/2002 - 04/30/2002 $36,905 $34,783 $27,904 $22,728
05/01/2002 - 05/31/2002 $36,174 $34,094 $26,749 $21,719
06/01/2002 - 06/30/2002 $35,469 $33,429 $25,366 $20,641
07/01/2002 - 07/31/2002 $30,797 $29,027 $21,784 $17,525
08/01/2002 - 08/31/2002 $30,637 $28,876 $21,991 $17,481
09/01/2002 - 09/30/2002 $29,154 $27,478 $20,645 $16,226
10/01/2002 - 10/31/2002 $28,813 $27,157 $21,306 $16,746
11/01/2002 - 11/30/2002 $30,614 $28,854 $22,416 $18,240
12/01/2002 - 12/31/2002 $30,051 $28,323 $21,658 $17,224
01/01/2003 - 01/31/2003 $29,285 $27,601 $20,913 $16,747
02/01/2003 - 02/28/2003 $28,447 $26,811 $20,244 $16,241
03/01/2003 - 03/31/2003 $28,470 $26,833 $20,404 $16,451
04/01/2003 - 04/30/2003 $30,602 $28,843 $22,061 $18,010
05/01/2003 - 05/31/2003 $33,261 $31,349 $23,839 $19,943
06/01/2003 - 06/30/2003 $34,053 $32,095 $24,458 $20,304
07/01/2003 - 07/31/2003 $35,875 $33,812 $25,730 $21,575
08/01/2003 - 08/31/2003 $37,217 $35,077 $26,983 $22,563
09/01/2003 - 09/30/2003 $36,664 $34,558 $26,187 $22,146
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 above illustration assumes a $10,000
investment made on October 1, 2003 and reinvestment of income and capital gains
distributions. The Standard & Poor's SmallCap 600 Composite Index (S&P SmallCap
600) 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 Russell 2000 Index is an unmanaged index that tracks the
performance of the 2000 smallest of the 3,000 largest U.S. companies based on
market capitalization. Unlike mutual funds, indexes 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 9/30/03 (%)
SHARE CLASS A B C G T Z
INCEPTION 11/1/98 11/1/98 11/18/02 11/1/98 2/12/93 12/14/92
- ------------------------------------------------------------------------------------------------
without with without with without with without with without with without
sales sales sales sales sales sales sales sales sales sales sales
charge charge charge charge charge charge charge charge charge charge charge
- ------------------------------------------------------------------------------------------------
11-month
(cumulative) 27.25 19.94 26.14 21.14 26.31 25.31 26.09 21.09 27.03 19.69 27.44
- ------------------------------------------------------------------------------------------------
1-year 25.75 18.52 24.62 19.62 24.79 23.79 24.56 19.56 25.53 18.36 26.06
- ------------------------------------------------------------------------------------------------
5-year 13.45 12.11 12.54 12.29 12.57 12.57 12.41 12.03 13.19 11.85 13.69
- ------------------------------------------------------------------------------------------------
10-year 13.87 13.20 13.42 13.42 13.43 13.43 13.35 13.35 13.74 13.07 14.16
- ------------------------------------------------------------------------------------------------
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. The graph and
table do not reflect the deduction of taxes that a shareholder would pay on
fund distributions or the redemptions of fund shares. The "with sales charge"
returns include the maximum 5.75% charge for class A shares, the appropriate
class B contingent deferred sales charge for the holding period after purchase
as follows: through first year-5%, second year-4%, third year-3%, fourth
year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the class C sales
charge of 1% which also carry a CDSC of 1.00% that is applied to shares sold
within the first year after they are purchased. For Class G shares, the CDSC
for the holding period after purchase is as follows: through first year-5%,
second year-4%, third year-4%, fifth year-4%, fifth year-3%, sixth year-2% and
seventh year-1%, thereafter-0%. For Class T shares, the "with sales charge"
returns include the maximum initial sales charge of 5.75%. After holding shares
for one year, you may sell them at any time without paying a CDSC. Class Z
shares are sold only at NAV with no 12b-1 fee. 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 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 Fund (adjusted, as necessary, to reflect the sales charge
applicable to Class A shares and Class B shares, respectively) for periods
prior to the date of 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 Fund (adjusted to reflect the sales charges
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
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 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 charges
applicable to Class G shares) for periods prior to the inception of Retail B
Shares of the Galaxy Fund (November 1, 1998). 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 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 Fund for periods prior to November 18, 2002, and returns of Trust
shares of the Shawmut Fund for periods prior to December 4, 1995.
9
-----------------------------------------------------------------------------
Performance Information - Columbia Small Company Equity Fund
PERFORMANCE OF A $10,000 INVESTMENT ($)
WITHOUT WITH
10/01/93 - 9/30/03 SALES CHARGE SALES CHARGE
--------------------------------------------
Class A 18,474 17,406
--------------------------------------------
Class B 17,529 17,529
--------------------------------------------
Class C 17,476 17,476
--------------------------------------------
Class G 17,503 17,503
--------------------------------------------
Class T 18,461 17,394
--------------------------------------------
Class Z 19,240 n/a
--------------------------------------------
[CHART]
Class A shares Class A shares
without with Russell 2000 Russell 2000
sales charge sales charge Growth Index Index
------------------- -------------- ------------- -------------
$10,000 $9,425 $10,000 $10,000
10/01/1993 - 10/31/1993 $10,147 $9,564 $10,289 $10,257
11/01/1993 - 11/30/1993 $9,845 $9,279 $9,872 $9,920
12/01/1993 - 12/31/1993 $10,158 $9,574 $10,262 $10,259
01/01/1994 - 01/31/1994 $10,453 $9,852 $10,535 $10,581
02/01/1994 - 02/28/1994 $10,387 $9,790 $10,489 $10,543
03/01/1994 - 03/31/1994 $9,853 $9,287 $9,844 $9,986
04/01/1994 - 04/30/1994 $9,829 $9,264 $9,859 $10,045
05/01/1994 - 05/31/1994 $9,566 $9,016 $9,639 $9,933
06/01/1994 - 06/30/1994 $9,033 $8,513 $9,223 $9,595
07/01/1994 - 07/31/1994 $9,139 $8,614 $9,355 $9,752
08/01/1994 - 08/31/1994 $9,755 $9,194 $10,043 $10,295
09/01/1994 - 09/30/1994 $9,895 $9,326 $10,086 $10,261
10/01/1994 - 10/31/1994 $10,141 $9,558 $10,195 $10,221
11/01/1994 - 11/30/1994 $9,813 $9,248 $9,782 $9,808
12/01/1994 - 12/31/1994 $10,151 $9,567 $10,014 $10,072
01/01/1995 - 01/31/1995 $9,842 $9,277 $9,811 $9,945
02/01/1995 - 02/28/1995 $10,243 $9,654 $10,263 $10,359
03/01/1995 - 03/31/1995 $10,768 $10,149 $10,564 $10,537
04/01/1995 - 04/30/1995 $11,094 $10,456 $10,723 $10,771
05/01/1995 - 05/31/1995 $11,194 $10,550 $10,864 $10,957
06/01/1995 - 06/30/1995 $12,154 $11,455 $11,612 $11,525
07/01/1995 - 07/31/1995 $13,248 $12,486 $12,517 $12,189
08/01/1995 - 08/31/1995 $13,356 $12,588 $12,671 $12,441
09/01/1995 - 09/30/1995 $13,965 $13,162 $12,932 $12,664
10/01/1995 - 10/31/1995 $13,590 $12,808 $12,295 $12,098
11/01/1995 - 11/30/1995 $14,082 $13,272 $12,838 $12,606
12/01/1995 - 12/31/1995 $14,089 $13,279 $13,123 $12,939
01/01/1996 - 01/31/1996 $13,784 $12,992 $13,014 $12,925
02/01/1996 - 02/29/1996 $14,704 $13,858 $13,607 $13,328
03/01/1996 - 03/31/1996 $15,413 $14,526 $13,876 $13,600
04/01/1996 - 04/30/1996 $17,184 $16,196 $14,942 $14,327
05/01/1996 - 05/31/1996 $17,859 $16,832 $15,709 $14,892
06/01/1996 - 06/30/1996 $16,661 $15,703 $14,688 $14,280
07/01/1996 - 07/31/1996 $15,319 $14,439 $12,894 $13,033
08/01/1996 - 08/31/1996 $16,255 $15,321 $13,848 $13,790
09/01/1996 - 09/30/1996 $17,310 $16,315 $14,562 $14,330
10/01/1996 - 10/31/1996 $16,846 $15,878 $13,934 $14,109
11/01/1996 - 11/30/1996 $16,897 $15,925 $14,321 $14,690
12/01/1996 - 12/31/1996 $17,024 $16,045 $14,601 $15,075
01/01/1997 - 01/31/1997 $17,676 $16,659 $14,966 $15,377
02/01/1997 - 02/28/1997 $15,942 $15,025 $14,062 $15,004
03/01/1997 - 03/31/1997 $14,945 $14,086 $13,069 $14,296
04/01/1997 - 04/30/1997 $14,476 $13,644 $12,917 $14,336
05/01/1997 - 05/31/1997 $16,996 $16,019 $14,859 $15,931
06/01/1997 - 06/30/1997 $17,926 $16,895 $15,363 $16,614
07/01/1997 - 07/31/1997 $18,894 $17,808 $16,149 $17,386
08/01/1997 - 08/31/1997 $19,459 $18,340 $16,634 $17,785
09/01/1997 - 09/30/1997 $21,029 $19,820 $17,961 $19,086
10/01/1997 - 10/31/1997 $20,062 $18,908 $16,882 $18,249
11/01/1997 - 11/30/1997 $19,237 $18,131 $16,480 $18,130
12/01/1997 - 12/31/1997 $19,438 $18,320 $16,490 $18,447
01/01/1998 - 01/31/1998 $18,971 $17,880 $16,270 $18,156
02/01/1998 - 02/28/1998 $20,555 $19,373 $17,707 $19,497
03/01/1998 - 03/31/1998 $21,435 $20,202 $18,449 $20,301
04/01/1998 - 04/30/1998 $21,163 $19,946 $18,561 $20,412
05/01/1998 - 05/31/1998 $19,675 $18,544 $17,212 $19,312
06/01/1998 - 06/30/1998 $19,425 $18,308 $17,388 $19,353
07/01/1998 - 07/31/1998 $17,688 $16,671 $15,936 $17,785
08/01/1998 - 08/31/1998 $13,316 $12,550 $12,258 $14,331
09/01/1998 - 09/30/1998 $14,759 $13,911 $13,501 $15,453
10/01/1998 - 10/31/1998 $14,792 $13,941 $14,205 $16,084
11/01/1998 - 11/30/1998 $15,780 $14,873 $15,308 $16,927
12/01/1998 - 12/31/1998 $17,311 $16,315 $16,693 $17,974
01/01/1999 - 01/31/1999 $17,496 $16,490 $17,444 $18,214
02/01/1999 - 02/28/1999 $14,999 $14,137 $15,848 $16,738
03/01/1999 - 03/31/1999 $14,684 $13,840 $16,412 $16,999
04/01/1999 - 04/30/1999 $15,042 $14,177 $17,862 $18,523
05/01/1999 - 05/31/1999 $15,542 $14,648 $17,890 $18,793
06/01/1999 - 06/30/1999 $16,812 $15,845 $18,833 $19,642
07/01/1999 - 07/31/1999 $16,551 $15,599 $18,251 $19,104
08/01/1999 - 08/31/1999 $16,258 $15,323 $17,568 $18,397
09/01/1999 - 09/30/1999 $16,692 $15,732 $17,908 $18,401
10/01/1999 - 10/31/1999 $16,996 $16,019 $18,366 $18,476
11/01/1999 - 11/30/1999 $19,785 $18,647 $20,307 $19,579
12/01/1999 - 12/31/1999 $24,051 $22,668 $23,887 $21,796
01/01/2000 - 01/31/2000 $23,834 $22,464 $23,665 $21,445
02/01/2000 - 02/29/2000 $29,521 $27,824 $29,172 $24,986
03/01/2000 - 03/31/2000 $29,435 $27,743 $26,106 $23,339
04/01/2000 - 04/30/2000 $25,626 $24,153 $23,469 $21,934
05/01/2000 - 05/31/2000 $24,130 $22,742 $21,414 $20,655
06/01/2000 - 06/30/2000 $26,910 $25,362 $24,180 $22,456
07/01/2000 - 07/31/2000 $24,240 $22,846 $22,108 $21,733
08/01/2000 - 08/31/2000 $26,531 $25,005 $24,434 $23,392
09/01/2000 - 09/30/2000 $25,509 $24,043 $23,219 $22,704
10/01/2000 - 10/31/2000 $23,609 $22,251 $21,334 $21,691
11/01/2000 - 11/30/2000 $20,788 $19,592 $17,460 $19,464
12/01/2000 - 12/31/2000 $22,736 $21,428 $18,528 $21,135
01/01/2001 - 01/31/2001 $24,086 $22,701 $20,027 $22,237
02/01/2001 - 02/28/2001 $22,357 $21,071 $17,281 $20,778
03/01/2001 - 03/31/2001 $20,993 $19,786 $15,711 $19,762
04/01/2001 - 04/30/2001 $22,303 $21,020 $17,634 $21,307
05/01/2001 - 05/31/2001 $22,932 $21,613 $18,043 $21,831
06/01/2001 - 06/30/2001 $23,771 $22,404 $18,535 $22,585
07/01/2001 - 07/31/2001 $23,037 $21,712 $16,954 $21,363
08/01/2001 - 08/31/2001 $22,053 $20,785 $15,894 $20,673
09/01/2001 - 09/30/2001 $18,319 $17,266 $13,329 $17,890
10/01/2001 - 10/31/2001 $19,591 $18,464 $14,611 $18,937
11/01/2001 - 11/30/2001 $21,097 $19,884 $15,831 $20,402
12/01/2001 - 12/31/2001 $22,709 $21,403 $16,818 $21,661
01/01/2002 - 01/31/2002 $21,726 $20,477 $16,219 $21,436
02/01/2002 - 02/28/2002 $20,101 $18,945 $15,170 $20,849
03/01/2002 - 03/31/2002 $21,699 $20,451 $16,488 $22,523
04/01/2002 - 04/30/2002 $20,861 $19,662 $16,132 $22,728
05/01/2002 - 05/31/2002 $19,355 $18,242 $15,188 $21,719
06/01/2002 - 06/30/2002 $17,847 $16,821 $13,900 $20,641
07/01/2002 - 07/31/2002 $14,872 $14,017 $11,764 $17,525
08/01/2002 - 08/31/2002 $14,899 $14,042 $11,758 $17,481
09/01/2002 - 09/30/2002 $14,191 $13,375 $10,909 $16,226
10/01/2002 - 10/31/2002 $14,715 $13,869 $11,461 $16,746
11/01/2002 - 11/30/2002 $16,077 $15,153 $12,597 $18,240
12/01/2002 - 12/31/2002 $15,042 $14,177 $11,727 $17,224
01/01/2003 - 01/31/2003 $14,308 $13,485 $11,408 $16,747
02/01/2003 - 02/28/2003 $13,902 $13,102 $11,104 $16,241
03/01/2003 - 03/31/2003 $14,295 $13,473 $11,272 $16,451
04/01/2003 - 04/30/2003 $15,277 $14,399 $12,338 $18,010
05/01/2003 - 05/31/2003 $17,006 $16,029 $13,728 $19,943
06/01/2003 - 06/30/2003 $17,413 $16,412 $13,993 $20,304
07/01/2003 - 07/31/2003 $18,290 $17,239 $15,051 $21,575
08/01/2003 - 08/31/2003 $19,156 $18,054 $15,859 $22,563
09/01/2003 - 09/30/2003 $18,474 $17,406 $15,462 $22,146
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 above illustration assumes a $10,000
investment made on October 1, 1993 and reinvestment of income and capital gains
distributions. On October 13, 2003, the fund's primary benchmark was changed to
the Russell 2000 Growth Index. During the reporting period, the fund's primary
benchmark was the S&P 500 Index. The Russell 2000 Growth Index is an unmanaged
index that measures the performance of those Russell 2000 companies with higher
price-to-book ratios and higher forecasted growth values. The Russell 2000
Index, also an unmanaged index, tracks the performance of the 2000 smallest of
the 3000 largest U.S. companies, based on market capitalization. Unlike mutual
funds, indices are not investments, do not incur fees or expenses and are not
professionally managed. It is not possible to invest directly in an index.
Securities in the fund may not match those in an index.
AVERAGE ANNUAL TOTAL RETURN AS OF 9/30/03 (%)
SHARE CLASS A B C G T Z
INCEPTION 11/18/02 11/18/02 11/18/02 3/4/96 12/30/91 12/30/91
- ------------------------------------------------------------------------------------------------
without with without with without with without with without with without
sales sales sales sales sales sales sales sales sales sales sales
charge charge charge charge charge charge charge charge charge charge charge
- ------------------------------------------------------------------------------------------------
11-month
(cumulative) 25.56 18.29 24.51 19.51 24.13 23.13 24.32 19.32 25.47 18.20 25.95
- ------------------------------------------------------------------------------------------------
1-year 30.19 22.72 28.99 23.99 28.60 27.60 28.79 23.79 30.10 22.63 30.61
- ------------------------------------------------------------------------------------------------
5-year 4.59 3.36 3.80 3.46 3.74 3.74 3.77 3.25 4.57 3.34 5.01
- ------------------------------------------------------------------------------------------------
10-year 6.33 5.70 5.77 5.77 5.74 5.74 5.76 5.76 6.32 5.69 6.76
- ------------------------------------------------------------------------------------------------
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. The graph and
table do not reflect the deduction of taxes that a shareholder would pay on
fund distributions or the redemptions of fund shares. The "with sales charge"
returns include the maximum initial sales charge of 5.75% for class A shares,
the appropriate class B contingent deferred sales charge (CDSC) for the holding
period after purchase is as follows: through first year-5%, second year-4%,
third year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and
the class C CDSC of 1.00% that is applied to shares sold within the first year
after they are purchased. After holding class C shares for one year, you may
sell them at any time without paying a CDSC. For class G shares, the CDSC for
the holding period after purchase is as follows: through the first year-5%,
second year-4%, third year-4%, fourth year-4%, fifth year-3%, sixth year-2%,
seventh year-1%, thereafter-0%. For the class T shares, the "with sales charge"
returns include the maximum 5.75% charge. Performance for different share
classes will vary based on differences in sales charge 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 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 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 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 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 Fund for periods prior
to November 18, 2002, the date on which Class Z shares were initially offered
by the Fund.
10
[GRAPHIC]
Portfolio Reviews
NET ASSET VALUE PER SHARE AS OF 9/30/03 ($)
Class A 14.01
Class B 14.00
Class C 14.00
Class G 14.00
Class T 14.01
Class Z 14.01
DISTRIBUTIONS DECLARED PER SHARE 11/1/02 - 9/30/03 ($)
Class A 0.22
Class B 0.14
Class C 0.11
Class G 0.13
Class T 0.23
Class Z 0.27
COLUMBIA ASSET ALLOCATION FUND
By Harvey B. Hirschhorn
Lead Portfolio Manager
The Board of Trustees for Columbia Asset Allocation Fund has approved the
change of the fund's fiscal year end from October 31 to September 30. As a
result, this report covers the 11-month period since the last annual report.
The next report you receive will cover the six-month period from October 1,
2003 through March 31, 2004. On October 13, 2003, the Lehman Brothers Aggregate
Bond Index was added as an additional benchmark to provide a more comprehensive
comparison to the fund's portfolio of both stocks and bonds.
For the 11-month period ended September 30, 2003, Columbia Asset Allocation
Fund class A shares returned 10.80% without sales charge. The fund, which
typically has an allocation of 60% stocks and 40% bonds, came out behind the
14.33% return of the S&P 500 Index. The fund beat the Lehman Brothers Aggregate
Bond Index's 5.89% return. We believe our large- and mid-cap value investments
caused the fund to underperform the Morningstar(R) Moderate Asset Allocation
Category average of 11.93%./1/ As investors returned to the stock market, the
higher quality stocks we owned trailed the performance of lower quality
companies. In addition, telecommunications and consumer staples stocks posted
disappointing returns.
- ---------
/1/ (C)2003 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.
Asset allocation as of September 30, 2003 (%)
[CHART]
Common stocks 63.8
Corporate notes and bonds 14.9
Mortgage-backed securities 10.4
Asset-backed securities 4.4
Other 6.5
MORE FAVORABLE STOCK MARKET ENVIRONMENT
With expectations of an improving economy and stock market, we positioned
the fund with a modest overweight - about 63% of assets, on average - in
stocks. Stocks made little headway leading up to the war in Iraq, but then
rallied nicely following the swift conclusion of major military conflicts last
spring. With an economic recovery looking more likely, investors began favoring
stocks with strong earnings growth prospects. Bonds, which had done well when
the economy was sluggish, began to falter. We reduced our fixed-income position
shortly before bond prices tumbled in the third quarter.
FOCUS ON SMALL- AND LARGE-CAP STOCKS
On the stock side, we emphasized small- and large-cap stocks with a more
neutral stake in the mid-cap area. In each of these three areas, we split our
investments evenly between growth and value names where valuations seemed
equally attractive. Small-cap stocks, which had the advantage of earnings
growth visibility in a strengthening economy, were among the strongest
performers for the period. The fund's small investment in real estate
investment trusts, which beat the broader stock market, also contributed
positively to performance.
Top 5 equity sectors as of September 30, 2003 (%)
[CHART]
Financials 13.0
Information technology 11.0
Consumer discretionary 9.8
Health care 9.1
Industrials 6.4
Sector and asset allocation breakdowns are calculated as a percentage of net
assets. Because the fund is actively managed, there can be no guarantee the
fund will continue to maintain these sectors or asset allocation in the future.
11
-----------------------------------------------------------------------------
TOP 5 EQUITY HOLDINGS AS OF 9/30/03 (%)
Citigroup 1.9
Pfizer 1.3
SPDR Trust Series 1 1.3
Microsoft 1.1
Intel 1.0
Holdings are calculated as a percentage of net assets. Because the fund is
actively managed, there can be no guarantee the fund will continue to maintain
these holdings in the future.
Large-cap stocks did perform well over the past year, initially driven by
valuations and liquidity. Mid-cap stocks outperformed large-cap stocks in this
time period. On the value side, our high quality investments in both the large-
and mid-cap sectors were disappointments as investors shifted toward lower
quality companies. In addition, our telecommunications investments suffered
from intense industry competition, while many of our consumer staples stocks,
primarily branded food companies, posted disappointing returns.
CHANGES TO ASSET ALLOCATION
The fund's focus on high-yield bonds benefited performance. As the
difference between yields on high-yield bonds and investment grade bonds
narrowed, high-yield bonds performed better than corporate bonds. In the
spring, we slightly trimmed our high-yield holdings. However, we continue to
believe that high-yield bonds offer better total return potential than
investment grade bonds.
Late in the period, we scaled back on small-cap stocks and shifted some of
the proceeds into international stocks. We believe foreign stocks offer
attractive valuations and good prospects, given the likelihood of continued
weakness in the US dollar and improving economies globally. Going forward, we
plan to keep our above-average stake in stocks, which we think will outperform
bonds. We expect stocks to do well as the economy strengthens, corporate
profits grow, productivity improves and inflation remains low.
/s/ Harvey B. Hirschhorn
Harvey B. Hirschhorn, CFA, is the lead portfolio manager of the fund. He has
been associated with the advisor and its predecessors since 1973. Mr.
Hirschhorn is responsible for allocating the fund's assets among the various
asset classes, while investment decisions for the portion of the fund allocated
to each asset class are made by investment professionals with particular
expertise in such asset class. As of November 11, 2003, Paul Berlinguet became
the manager of the small-cap growth stocks category.
An investment in the fund offers the potential for long-term growth, but also
involves certain risks, including stock market fluctuations due to economic
and business developments.
12
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Portfolio Reviews
NET ASSET VALUE PER SHARE AS OF 9/30/03 ($)
Class A 17.59
Class B 16.96
Class C 16.98
Class G 16.43
Class T 17.50
Class Z 17.84
DISTRIBUTIONS DECLARED PER SHARE 11/1/02 - 9/30/03 ($)
Class A 0.03
Class B 0.00
Class C 0.00
Class G 0.00
Class T 0.00
Class Z 0.06
COLUMBIA LARGE CAP GROWTH FUND
By Bob Armknecht and Alexander S. Macmillan
Portfolio Managers
The Board of Trustees for Columbia Large Cap Growth Fund has approved the
change of the fund's fiscal year end from October 31 to September 30. As a
result, this report covers the 11-month period since the last annual report.
The next report you receive will be for the six-month period from October 1,
2003 through March 31, 2004. On October 13, 2003, the fund's primary benchmark
was changed to the Russell 1000 Growth Index to provide a more useful
comparison of the fund's relative performance. During this reporting period,
the fund's benchmark was the S&P 500 Index.
For the 11-month period ended September 30, 2003, class A shares of Columbia
Large Cap Growth Fund returned 9.72% without sales charge. The fund trailed the
S&P 500 Index and the Morningstar Large Blend Category average, which returned
14.33% and 13.19%, respectively, over the same period./1/ The fund also came
out behind the Russell 1000 Growth Index, which returned 15.34% for the
11-month period.
An emphasis in the energy area held back results. We believe the country's
high level of energy consumption will ultimately lead to increased energy
exploration. Therefore, we maintained substantial investments in oil service
drilling companies. Our enthusiasm for this area was not shared by other
investors. Therefore, the performance of the energy stocks in the portfolio was
disappointing.
TECH AND FINANCIALS RALLY
At 28.3% of net assets, information technology was the biggest position in
the portfolio. Tech stocks made a strong comeback after three years of sharp
declines. Signs of a pickup in capital spending on technology products led to
anticipation of better earnings and increased investor interest in the sector.
Stocks in the financial sector also recovered from low levels. Early in the
period, J.P. Morgan Chase, Bank of New York and Citigroup suffered because of
their business dealings with companies such as Enron and WorldCom (neither of
which were in the portfolio). In our judgment, the stock prices of these
financial companies became unduly depressed. We had substantial holdings in
each of these stocks, all of which rebounded nicely and contributed positively
to performance. We continue to own Citigroup (3.3% of net assets), but
eliminated J.P. Morgan Chase and Bank of New York as we pared back on our
financial weighting to bring it more in line with the Russell benchmark./2/
CONSUMER STOCKS PROVIDED MIXED RESULTS
The performance of some consumer staples stocks, including Kraft Foods and
Walgreen, proved disappointing. We sold our stakes in both names. In the
consumer discretionary area, results overall were more positive. Selected media
stocks such as Liberty Media did well, as did retailers Target and Chico's FAS
(0.8%, 1.9% and 1.0% of net assets, respectively). We believe tax refunds and
the mortgage refinancing boom, which have increased consumers' disposable
income, were instrumental in boosting returns in the consumer discretionary
area.
OPPORTUNITY IN MARKET NICHES
While we continued to own some big, traditional pharmaceutical companies,
such as Pfizer (5.0% of net assets), we also emphasized niche-oriented
companies. For example, we invested in Teva Pharmaceutical Industries, a
generic drug manufacturer, and Boston Scientific (1.8% and 1.1% of net assets,
respectively), which produces stents used in heart surgery. Both stocks
advanced nicely during the period.
Sector breakdown as of September 30, 2003 (%)
[CHART]
Information technology 28.3
Health care 23.0
Consumer discretionary 20.2
Consumer staples 8.5
Financials 6.8
Industrials 7.6
Energy 3.0
Telecommunication services 1.7
Other 0.9
Sector breakdowns are calculated as a percentage of net assets. Because the
fund is actively managed, there can be no guarantee the fund will continue to
maintain these sectors in the future.
- ---------
/1/ (C)2003 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.
/2/ Holdings are disclosed as of September 30, 2003, and are subject to change.
13
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TOP 10 HOLDINGS AS OF 9/30/03 (%)
Microsoft 5.0
Pfizer 5.0
Intel 4.7
General Electric 3.9
Cisco 3.6
Citigroup 3.3
Amgen 2.7
Dell 2.6
PepsiCo 2.3
Lowe's 2.1
Holdings are calculated as a percentage of net assets. Because the fund is
actively managed, there can be no guarantee the fund will continue to maintain
these holdings in the future.
REASONS FOR OPTIMISM
Economic data and corporate profits have improved, and we are generally
positive about the prospects for the economy and the stock market. We have
restructured the portfolio to be more in line with the Russell 1000 Growth
Index and believe the fund is well positioned to take advantage of a better
investment environment in the months ahead.
/s/ Robert G. Armknecht /s/ Alec MacMillan
Bob Armknecht, CFA, has managed the Columbia Large Cap Growth Fund since its
inception in December 1990. He has managed equity portfolios for Columbia
Management Advisors, Inc. and its predecessors since 1988. Alexander S.
Macmillan, CFA, has co-managed the fund since July 1, 2003. On October, 20,
2003 Paul Berlinguet replaced Robert Armknecht as co-manager. He joined the
advisor in October 2003.
An investment in the fund offers the potential for long-term growth, but also
involves certain risks, including stock market fluctuations due to economic
and business development and the possibility of losses due to the sensitivity
of growth stock prices to changes in current or expected earnings.
14
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Portfolio Reviews
NET ASSET VALUE PER SHARE AS OF 9/30/03 ($)
Class A 11.02
Class B 10.49
Class C 10.47
Class G 10.50
Class T 11.00
Class Z 11.24
COLUMBIA DISCIPLINED VALUE FUND
By Eric Remole and Michael Welhoelter
Portfolio Managers
The Board of Trustees for Columbia Disciplined Value Fund has approved the
change of the fund's fiscal year end from October 31 to September 30. As a
result, this report covers the 11-month period since the last annual report.
The next report you receive will be for the six-month period from October 1,
2003 through March 31, 2004. On October 13, 2003, the fund's primary benchmark
was changed to the Russell 1000 Value Index to provide a more useful comparison
to the fund's relative performance. During this reporting period, the fund's
benchmark was the S&P 500 Index.
For the 11-month period ended September 30, 2003, Columbia Disciplined Value
Fund class A shares returned 15.03% without sales charge. The fund performed
better than both the S&P 500 Index and the Morningstar Large Blend Category
average, which returned 14.33% and 13.19%, respectively./1/ The fund came out
slightly behind the Russell 1000 Value Index, however, which returned 15.79%
for the period. Our emphasis on a weaker performing area of the energy sector -
oil service stocks - along with specific stock disappointments contributed to
the fund's modest underperformance.
Among the factors that boosted the fund's returns were its investments in
stocks of companies with smaller market capitalizations. The small-cap sector
tends to perform relatively well in the early stages of an economic recovery
and enjoyed prices that were attractive versus the prices for stocks of
companies with larger capitalizations. Significant investments in stocks of
companies with sizable debt also helped performance, as falling interest rates
improved the credit position of holdings such as TXU Corp. in the utilities
sector and Cendant Corp. in the industrial sector (2.1% and 2.0% of net assets,
respectively)./2/ Selected investments in the
- ---------
/1/ (C)2003 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.
/2/ Holdings are disclosed as of September 30, 2003, and are subject to change.
consumer services sector also performed well, with strong returns from holdings
such as Royal Caribbean Cruises Ltd. (1.0% of net assets). The fund also had a
sizable stake in financials, which posted healthy gains even though they did
not keep pace with the market.
These positives helped offset our overall underweight in companies involved
with oil refining and energy reserves, which performed relatively well as oil
and gas prices rose. Our largest investment in this area was Exxon Mobil Corp.
(4.9% of net assets). Weaker performances from oil service stocks, such as
Global Santa Fe (no longer in the portfolio), hampered returns as demand for
new oil exploration and drilling remained flat. Selected business services
stocks were also disappointments.
INCREASED FOCUS ON QUALITY
We continued to synchronize the portfolio's industry weightings with those
of its market benchmark, while increasing our emphasis on individual stocks of
higher quality companies with strong profit margins, earnings and cash flows.
Our purchases during the period included Monsanto Co. (2.3% of net assets) in
the basic materials group, because of its strong cash flow and improved
earnings; Mattel (1.2 % of net assets) in the consumer services group, due to
its improving profit margins and balance sheet; and Ambac Financial Group (1.3%
of net assets), due to its relatively high profit margins.
Other purchases included companies with strong growth prospects such as
Valero Energy Corp. and AOL Time Warner (1.6% and 0.8% of net assets,
respectively).
Sector breakdown as of September 30, 2003 (%)
[CHART]
Financials 33.8
Consumer discretionary 10.3
Energy 9.2
Other 0.8
Industrials 10.4
Telecommunication services 6.9
Information technology 5.1
Utilities 6.1
Consumer staples 5.9
Health care 5.8
Materials 5.7
Sector breakdowns are calculated as a percentage of net assets. Because the
Fund is actively managed, there is no guarantee the fund will maintain these
sector breakdowns in the future.
15
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TOP 10 HOLDINGS
AS OF 9/30/03 (%)
Exxon Mobil 4.9
Citigroup 3.9
SBC Communications 3.9
Bank of America 3.4
Charter One Financial 2.7
Verizon Communications 2.4
Comerica 2.3
Monsanto Co 2.3
TXU 2.1
US Bancorp 2.0
Holdings are calculated as a percentage of net assets. Because the fund is
actively manage, there is no guarantee the fund will maintain these holdings in
the future.
In the forest product and specialty chemical groups, we added Rayonier and
Sigma-Aldrich (0.6% and 1.3% of net assets, respectively), which offered
attractive profit margins and improved earnings. In the consumer area, we
eliminated the fund's position in BJ's Wholesale Club because of the stock's
low quality rating and negative price momentum. We also exited from Home Depot,
amid concerns that the company's business outlook could not support its stock
price.
IN SEARCH OF A BUSINESS CATALYST
We believe that stocks in the value sector will perform in line with the
rest of the market in the months to come. We expect to continue emphasizing
attractively priced stocks of higher quality companies whose business prospects
have been clearly improving. We will likely also look for companies that enjoy
some business catalyst for positive earnings surprises and upward revisions in
their earnings forecasts.
/s/ Eric Remole /s/ Michael A. Welhoelter
Eric Remole and Michael Welhoelter have co-managed the fund since November
2002. They have been with Columbia Management Advisors, Inc. and its
predecessors since 2001.
An investment in the fund offers the potential for long-term growth, but also
involves certain risks, including stock market fluctuations due to economic
and business developments.
Investing in small-cap stocks may present special risks, including possible
illiquidity and greater price volatility than stocks of larger, more
established 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.
16
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Portfolio Reviews
NET ASSET VALUE PER SHARE AS OF 9/30/03 ($)
Class A 10.83
Class B 10.75
Class C 10.71
Class G 10.67
Class T 10.78
Class Z 11.01
DISTRIBUTIONS DECLARED PER SHARE 11/1/02- 9/30/03 ($)
Class A 0.04
Class B 0.01
Class C 0.01
Class G 0.00
Class T 0.06
Class Z 0.11
TOP 10 HOLDINGS AS OF 9/30/03 (%)
Vodafone Group 2.4
Credit Suisse
Group 2.3
BHP Billiton 2.1
BP PLC 2.1
Matsushita
Electric 2.0
Siam Cement 1.9
Novartis AG 1.8
Credit Agricole
SA 1.6
Millea Holdings 1.6
Canon 1.6
Holdings are calculated as a percentage of net assets. Because the fund is
actively managed, there is no guarantee the fund will maintain these holdings
in the future.
COLUMBIA INTERNATIONAL EQUITY FUND
By Christopher Legallet and James McAlear Portfolio Managers
The Board of Trustees for Columbia International Equity Fund has approved
the change of the fund's fiscal year end from October 31 to September 30. As a
result, this report covers the 11-month period since the last annual report.
The next report you receive will be for the six-month period from October 1,
2003 through March 31, 2004.
For the 11-month period ended September 30, 2003, Columbia International
Equity Fund class A shares returned 17.23% without sales charge. The fund's
return fell short of the MSCI AC World Free ex-US Index, which returned 22.46%.
The fund, however, outperformed the Morningstar(R) Foreign Stock Category,
which returned 15.15% over the same period./1/ We believe that most of the
fund's underperformance versus the index occurred in the second quarter of
2003. At that time, its relatively small allocation to lower quality companies,
such as banks in Japan and insurance companies in Europe, held back results.
The SARS (Severe Acute Respiratory Syndrome) epidemic took an added toll on
performance, hurting companies affected by the slowdown in the Asian travel
industry. An underweight in Europe, particularly in Germany, also had a
negative effect on total return. Because of its relatively small commitment to
Europe, the fund did not fully participate in the rebound in European stocks
nor did it fully benefit from the substantial rise in the euro relative to the
US dollar.
AN IMPROVED INVESTMENT ENVIRONMENT
Over the 11-month reporting period, the investment environment changed
dramatically. At the beginning of the period, uncertainty about the war in
Iraq, SARS and the global economic slowdown weighed heavily on investor
sentiment. Once the official end of the war was announced and SARS appeared
under control, investors began focusing
on data that indicated improved economic growth in the second half of 2003 and
into 2004. Against this backdrop, investors returned to the stock market, and
stock valuations rose from very low levels.
INCREASED INVESTMENT IN JAPAN BENEFITED THE FUND
During the last four months of the period, the investment environment in
Japan became more favorable. There was a rebound in corporate profits,
deflationary pressures eased, the number of non-performing bank loans declined
and it appeared that Japan's long-term banking crisis had stabilized. In
September 2003, the yen rose sharply in relation to the US dollar. The stronger
yen along with the rising value of stocks contributed substantially to
performance. As we became more positive about Japan, we increased our
investment there, particularly in the financial area, where we added UFJ
Holdings, a large bank; insurance companies Millea Holdings, Inc. and Daido
Life Insurance; and Nomura Holdings, Inc., a diversified financial company./2/
Outside Japan, Thailand aided results. The country's low interest rates
sparked a pick-up in consumer spending, stock valuations remained attractive
and profit growth was robust. Siam Cement, which is benefiting from a
construction boom in Thailand, was one of the biggest contributors to the
fund's return.
Sector breakdown as of September 30, 2003 (%)
[CHART]
Financials 22.6
Consumer Discretionary 18.6
Information Technology 12.9
Health Care 11.2
Other 1.1
Industrials 11.0
Materials 5.0
Consumer Staples 5.5
Energy 4.6
Telecommunication services 6.5
Utilities 1.0
Sector breakdowns are calculated as a percentage of net assets. Because the
fund is actively managed, there is no guarantee the fund will maintain these
sector breakdowns in the future.
- ---------
/1/ (C)2003 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.
/2/ Holdings are disclosed as a percentage of net assets as of September 30,
2003 and are subject to change: UFJ Holdings (0.7%), Millea Holdings
(1.6%), Daido Life Insurance (0.5%), Nomura Holdings, Inc. (0.8%) and Siam
Cement (1.9%).
17
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TOP 5 COUNTRIES AS OF 9/30/03 (%)
Japan 24.5
United Kingdom 20.3
France 7.5
Switzerland 5.9
Spain 5.9
Country breakdowns are calculated as a percentage of net assets. Because the
fund is actively managed, there is no guarantee the fund will maintain these
country breakdowns in the future.
GERMANY WAS A STRONG LATE-PERIOD PERFORMER
In Germany, stocks rebounded from their lows, as investors showed approval
of the government's plans to trim taxes. Because we believe that long-term
prospects for Germany are favorable, we began adding German stocks to the
portfolio, increasing the fund's allocation from about 0.5% to about 3.5% of
net assets.
LOOKING TOWARD A SYNCHRONOUS GLOBAL ECONOMIC RECOVERY
We believe we are at the beginning stages of a global economic recovery. A
recent report of the Organization for Economic Cooperation and Development
stated that leading economic indicators for nearly all major countries began to
improve in April 2003. We believe these indicators were a precursor to more
positive economic news. We think the fund is well positioned to take advantage
of a better economic environment in the coming months.
/s/ Chris Legallet /s/ James M. McAlear
Christopher Legallet has co-managed the Columbia International Equity Fund
since August 2002. He has managed investment portfolios for Columbia Management
Advisors, Inc. and its predecessors since 1997. James McAlear has co-managed
the Columbia International Equity Fund since August 2002. He has managed
investment portfolios for Columbia Management since 1992.
There are also specific risks involved when investing in foreign stocks, such
as currency exchange rate fluctuations, economic change, instability of
emerging countries and political developments.
18
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Portfolio Reviews
NET ASSET VALUE PER SHARE AS OF 9/30/03 ($)
Class A 11.22
Class B 10.99
Class C 10.99
Class G 10.89
Class T 11.18
Class Z 11.25
DISTRIBUTIONS DECLARED PER SHARE 11/1/02 - 9/30/03 ($)
Class A 0.05
Class B 0.01
Class C 0.01
Class G 0.01
Class T 0.05
Class Z 0.09
COLUMBIA LARGE CAP CORE FUND
By Greg Miller
Portfolio Manager
The Board of Trustees for Columbia Large Cap Core Fund has approved the
change of the fund's fiscal year end from October 31 to September 30. As a
result, this report covers the 11-month period since the last annual report.
The next report you receive will be for the six-month period from October 1,
2003 through March 31, 2004.
For the 11-month period ended September 30, 2003, class A shares of Columbia
Large Cap Core Fund returned 9.96% without sales charge. The S&P 500 Index
returned 14.33%, while the Morningstar(R) Large Blend Category returned 13.19%
over the same period./1/ We believe that most of the fund's underperformance
occurred in the second calendar quarter of 2003, when the fund's relatively
conservative investment mix did not fully participate in the significant upturn
in the stock market.
CONSUMER SPENDING BENEFITED THE ECONOMY
Tax cuts and lower interest rates - which spurred a boom in mortgage
refinancing - put more money in consumers' pockets during the period. As a
result, consumer spending rose significantly and economic growth picked up to a
meaningful pace by the end of the period. In this environment, stocks made
strong gains, particularly in the second quarter of 2003. However, we were not
convinced that these gains were sustainable. We were concerned that if interest
rates reversed course and moved higher, they could have a negative effect on
stocks. Indeed, when data began to indicate that the economy might improve,
interest rates rose and stocks pulled back in the final weeks of the period.
HEALTH CARE STOCKS WERE DISAPPOINTING
We believe the fund's return was less than its benchmark because of its
relatively conservative positioning. In particular, our investments in the
defensive health care sector were a drag on performance. Large pharmaceutical
companies such as Wyeth (0.5% of net assets)/2/, Merck & Company and
Bristol-Myers Squibb (both no longer held by the fund at period end) lost
ground as the pharmaceutical industry faced a slowdown in the number of
blockbuster drugs to emerge from research and development, patent expirations,
and concerns about generic less expensive, foreign substitutes. Concerns about
the importation of less expensive drugs from foreign countries also hurt the
industry's overall performance.
STOCK SELECTION A PLUS IN FINANCIAL SERVICES, TECHNOLOGY AND CONSUMER SECTORS
In the financial sector, we emphasized companies that benefited from the
large volume of mortgage refinancing. These included Wells Fargo & Co. and Bank
of America (1.9% and 2.7% of net assets, respectively). We also favored large
diversified financial institutions, such as Citigroup Inc. (4.5% of net
assets), which enjoyed rising revenues because of the upturn in securities
trading.
In the information technology area, we were rewarded by our investment in
high quality companies that had been beaten down over the past three years. For
example, our investments in Texas Instruments and Avnet Inc. made positive
contributions to the fund's return. We sold both stocks and took profits at the
end of the period.
Consumer discretionary stocks, particularly retailers, also helped boost
total return. For example, Lowe's Companies (1.2% of net assets), a building
supply store, was a particularly strong performer. Lowe's benefited from
dramatic growth in the real estate and construction industries as well as from
the high level of consumer spending.
Sector breakdown as of September 30, 2003 (%)
[CHART]
Financials 18.0
Health care 14.4
Information technology 17.5
Consumer discretionary 14.5
Industrials 15.3
Consumer staples 7.2
Energy 7.3
Telecommunication services 1.9
Utilities 0.6
Materials 3.3
Sector breakdowns are calculated as a percentage of net assets. Because the
fund is actively managed, there is no guarantee the fund will maintain these
sector breakdowns in the future.
- ---------
/1/ (C)2003 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.
/2/ Holdings are disclosed as of September 30, 2003, and are subject to change.
19
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TOP 10 EQUITY HOLDINGS AS OF 9/30/03 (%)
Microsoft 4.7
Citigroup 4.5
Pfizer 3.9
Bank of America 2.7
PepsiCo 2.7
General Electric 2.6
Cisco Systems 2.5
Procter &
Gamble 2.0
Viacom 2.0
Exxon Mobil 2.0
Top holdings are calculated as a percentage of total net assets. Because the
Fund is actively managed, there is no guarantee the Fund will maintain these
holdings in the future.
A CONSERVATIVE FOCUS
For the period ahead, we expect to maintain a relatively conservative
emphasis. We continue to focus on high quality companies that offer what we
believe to be excellent value and return potential going forward.
/s/ Gregory M. Miller
Greg Miller has managed the Columbia Large Cap Core Fund since July 1998. He
has managed equity portfolios for Columbia Management Advisors, Inc. and its
predecessors since 1985.
Sean P. Wilson, CFA and Michael R. Pelosi, CFA became co-managers of the fund
in October 2003. Mr. Wilson and Mr. Pelosi are both co-heads of the
institutional large-cap core equity team. Mr. Wilson joined the advisor in June
2003 and Mr. Pelosi joined in 1986.
An investment in the fund offers the potential for long-term growth, but also
involves certain risks, including stock market fluctuations due to economic
and business developments.
20
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Portfolio Reviews
NET ASSET VALUE PER SHARE AS OF 9/30/03 ($)
Class A 15.30
Class B 14.75
Class C 14.77
Class G 14.63
Class T 15.16
Class Z 15.45
DISTRIBUTIONS DECLARED PER SHARE 11/1/02 - 9/30/03 ($)
Class A 0.65
Class B 0.65
Class C 0.65
Class G 0.65
Class T 0.65
Class Z 0.66
COLUMBIA SMALL CAP FUND
By Peter Larson Portfolio Manager
The Board of Trustees for Columbia Small Cap Fund has approved the change of
the fund's fiscal year end from October 31 to September 30. As a result, this
report covers the 11-month period since the last annual report. The next report
you receive will be for the six-month period from October 1, 2003 through March
31, 2004.
For the 11-month period ended September 30, 2003, Columbia Small Cap Fund
class A shares returned 27.25% without sales charge. The fund trailed the
Russell 2000 Index, which returned 32.26%, and matched its competitive peer
group, the Morningstar Small Blend Category, which returned 27.25% during the
same period./1/
Although the fund delivered strong double-digit returns for the period, its
performance was somewhat held back by its underweight in technology and health
care - the strongest performers within the index for the period. The fund's
bias toward value also hurt relative performance as the rally in equity prices
was driven mostly by the growth component of the index, and favored the most
speculative issues. Strong stock selection within the industrials sector, in
which the fund was overweighted, helped performance over the period.
BIGGER GAINS FROM SMALLER STOCKS
Early in 2003 we began to focus on the smallest of the small stock universe.
We built positions in companies such as Performance Technologies, a
telecommunications equipment manufacturer; Kforce, a specialty recruiting
company; Computer Task Group, an information technology company; and Res-Care,
which provides services to people with physical and mental disabilities./2/
These micro-cap stocks performed well over the period and helped us catch some
of the rally that we otherwise might have sidestepped. We still view the
technology sector, where valuations seem high, with caution.
Sector breakdown as of September 30, 2003 (%)
[CHART]
Industrials 21.1
Consumer discretionary 15.7
Health care 11.9
Information technology 13.6
Other 10.3
Financials 8.4
Materials 7.4
Energy 4.5
Utilities 3.7
Consumer staples 2.8
Telecommunication serivces 0.6
Sector breakdowns are calculated as a percentage of net assets. Because the
fund is actively managed, there is no guarantee the fund will maintain these
sector breakdowns in the future.
Our overweight position in industrial stocks, which performed well during
the period, aided fund performance. This sector includes: trucking, machinery,
building products and transportation. Many industrial companies have succeeded
in an improving economic environment because they have contained costs and
increased profitability. As economic conditions continue to improve, we believe
that industrials have the potential to experience earnings growth that is even
better than that of the technology sector.
One company in particular within the industrial sector, and one that we have
held since 2000, is Albany International - a paper products and services
company. Albany International has enjoyed strong earning growth, partly because
of its ability to pay off debt, cut expenses across the company and improve
revenues. We believe that as economic conditions continue to improve, the
company has the potential to generate higher profits and a higher stock price.
- ---------
/1/ (C)2003 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.
/2/ Holdings are disclosed as a percentage of net assets as of September 30,
2003 and are subject to change: Performance Technologies (0.5%), Kforce
(0.7%), Computer Task Group (0.3%), Res-Care (0.7%) and Albany
International (1.6%).
21
-----------------------------------------------------------------------------
TOP 10 HOLDINGS
AS OF 9/30/03 (%)
Albany
International 1.6
Benchmark
Electronics 1.5
Invacare 1.5
Armor Holdings 1.0
Unifirst 1.0
ProQuest 1.0
Chicago Bridge
& Iron 1.0
West
Pharmaceuticals 0.9
ADVO 0.9
Thoratec 0.9
Top holdings are calculated as a percentage of net assets. Because the fund is
actively managed, there is no guarantee the fund will maintain these holdings
in the future.
SMALL-CAP GROWTH LINKED TO ECONOMY'S PROSPECTS
Further gains in the small-cap sector - and the market as a whole - are
likely to depend on further improvements in the economy and corporate earnings.
Much of last year's gains were based on continued improvements in both. Because
we believe that there could be short-term risk to the stock market if the
economy stumbles or if earnings reports prove disappointing, we have tried to
limit our risk exposure by focusing on companies that have been profitable and
well managed and whose stocks are attractively priced. That said, we are
cautiously optimistic. An improving economic environment has the potential to
benefit the small-cap sector more than any other. It has traditionally led
during market advances as the economy recovers. We believe that the fund is
well positioned for an improving environment while carrying less risk than more
growth-oriented funds.
/s/ Peter Larson
Peter Larson has managed the Columbia Small Cap Fund since 1992. He has managed
small company portfolios for Columbia Management Advisors, Inc. and its
predecessors since 1963.
An investment in the fund offers the potential for long-term growth, but also
involves certain risks, including stock market fluctuations due to economic
and business developments.
Investing in small-cap stocks may present special risks, including possible
illiquidity and greater price volatility than stocks of larger, more
established companies.
22
-----------------------------------------------------------------------------
Portfolio Reviews
NET ASSET VALUE PER SHARE AS OF 9/30/03 ($)
Class A 14.10
Class B 13.26
Class C 13.22
Class G 13.24
Class T 14.09
Class Z 14.85
COLUMBIA SMALL COMPANY EQUITY FUND
By William Garrison
Portfolio Manager
The Board of Trustees for Columbia Small Company Equity Fund has approved
the change of the fund's fiscal year end from October 31 to September 30. As a
result, this report covers the 11-month period since the last annual report.
The next report you receive will be for the six-month period from October 1,
2003 through March 31, 2004. On October 13, 2003, the fund's primary benchmark
was changed to the Russell 2000 Growth Index to provide a more useful
comparison of the fund's relative performance. During this reporting period,
the fund's benchmark was the S&P 500 Index.
For the 11-month period ended September 30, 2003, class A shares of Columbia
Small Company Equity Fund returned 25.56% without sales charge. Over the same
period, the Russell 2000 Growth Index returned 34.90%, while the Morningstar
Small Company Growth Category returned 28.87%./1/
The fund trailed its market benchmark over the period primarily because the
smallest, most speculative stocks within the benchmark were the strongest
performers. The fund was relatively underweighted in these small and micro-cap
stocks because we did not feel that their business prospects or growth
potential warranted what we con- sidered to be undue risk. We also believe that
the speculative rally in this sub-sector has likely neared its peak. We expect
investors to focus once again on both near- and mid-term earnings potential and
valuation - a move that could favor the fund, with its long-term strategy of
investing in higher quality companies.
Performance was also hurt by the fund's relative overweight in the energy
sector. We still believe that energy's mid- and long-term prospects are strong,
but this past summer's mild weather greatly reduced demand for energy across
much of the country. As a result, our investment in natural gas exploration and
service companies proved disappointing relative to other sectors in the market.
MAINTAINING A SOUND STRATEGY
We take a bottom-up approach to stock selection, paying attention to
valuation with an eye on limiting volatility. We believe that this prudent
strategy has been instrumental in helping us find attractive companies that
enjoyed above-average returns over the period. Station Casinos is one of these
companies (1.7% of net assets)./2/ Station Casinos is the leading provider of
casino gaming to the local, off-strip, Las Vegas casino market. The company
commands a major share of this market and we believe their mid- and long-term
growth prospects are attractive.
FOCUS ON CONSUMER, ENERGY AND TECHNOLOGY
During the period our biggest relative overweight was in the consumer
sector. We identified entrepreneurial, small-cap consumer companies that
benefited from niche markets and changing consumer demand. Examples of these
are Advance Auto Parts and Cost Plus (1.0% and 0.7% of net assets,
respectively), both of which were up strongly over the period. Recent
employment and consumer confidence data strengthened over the period and we
believe this should help these economically sensitive companies. We believe
that the energy sector, despite its recent disappointments, still holds
excellent growth potential and we remain overweighted relative to our
benchmark. The fund's technology weight has increased, partly because of the
sector's strong relative returns.
- ---------
/1/ (C)2003 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.
/2/ Holdings are disclosed as of September 30, 2003, and are subject to change.
Sector breakdown as of September 30, 2003 (%)
[CHART]
Other 2.5
Information technology 28.5
Consumer discretionary 17.9
Health care 19.6
Industrials 12.3
Financials 10.0
Energy 5.5
Consumer staples 1.5
Materials 2.2
Sector breakdowns are calculated as a percentage of net assets. Because the
fund is actively managed, there is no guarantee the fund will maintain these
sector breakdowns in the future.
23
-----------------------------------------------------------------------------
TOP 10 HOLDINGS AS OF 9/30/2003 (%)
Jarden 2.0
Station Casinos 1.7
PETCO Animal Supplies 1.6
EGL 1.4
Meritage 1.4
Investors Financial Services 1.2
Alliance Gaming 1.2
SonoSite 1.2
Applied Films 1.1
Integra LifeSciences Holdings 1.1
Holdings are calculated as a percentage of net assets. Because the fund is
actively managed, there is no guarantee the fund will maintain these holdings
in the future.
MARKET OUTLOOK
We are reasonably optimistic about the small-cap sector's prospects moving
forward. The US economy is still emerging from a recession, and history shows
that small-cap stocks have been the best place to be in such an environment.
Cash continues to move into the small-cap asset class, and we believe that it
will continue to attract investor attention. We remain committed to a
consistent, prudent strategy of choosing those stocks that we feel offer real
value and solid growth potential.
/s/ William M. Garrison
William Garrison became portfolio manager of Columbia Small Company Equity Fund
in June 2002. As of November 11, 2003, Paul Berlinguet became the fund's
portfolio manager. In addition to his responsibilities as portfolio manager,
Mr. Berlinguet is the co-head of the large cap growth team at Columbia
Management Advisors, Inc.
An investment in the fund offers the potential for long-term growth, but also
involves certain risks, including stock market fluctuations due to economic
and business developments.
Investing in small-cap stocks may present special risks, including possible
illiquidity and greater price volatility than stocks of larger, more
established companies.
24
[GRAPHIC]
Columbia Asset Allocation Fund
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 2003
SHARES VALUE
------ -----
COMMON STOCKS - 63.84%
CONSUMER DISCRETIONARY - 9.78%
AUTO COMPONENTS - 0.57%
1,300 BorgWarner, Inc............................. $ 88,205
192,600 Delphi Corp................................. 1,743,030
3,200 FCC Co., Ltd................................ 103,110
7,050 Gentex Corp................................. 245,622
1,500 Johnson Controls, Inc....................... 141,900
3,600 Lear Corp.*................................. 189,504
1,900 Modine Manufacturing Co..................... 45,220
4,400 Standard Motor Products, Inc................ 44,440
2,000 Superior Industries International........... 81,100
1 Visteon Corp................................ 7
----------
2,682,138
----------
AUTOMOBILES - 0.12%
7,500 Honda Motor Co., Ltd........................ 300,902
23,000 Nissan Motor Co., Ltd....................... 248,755
----------
549,657
----------
HOTELS, RESTAURANTS & LEISURE - 1.12%
4,800 Accor SA.................................... 176,849
9,400 Alliance Gaming Corp.*...................... 190,632
4,900 Applebee's International, Inc............... 154,252
8,100 Bally Total Fitness Holding Corp.*.......... 70,065
8,700 Brinker International, Inc.*................ 290,232
1,500 CBRL Group, Inc............................. 53,220
33,600 Compass Group PLC........................... 193,805
5,600 Darden Restaurants, Inc..................... 106,400
2,700 Harrah's Entertainment, Inc................. 113,697
11,750 Hilton Hotels Corp.......................... 190,585
3,200 International Game Technology, Inc.......... 90,080
4,200 Landry's Restaurants, Inc................... 86,520
5,700 Lone Star Steakhouse & Saloon, Inc.......... 119,130
1,950 Marriott International, Inc................. 83,909
2,800 MGM Mirage, Inc.*........................... 102,340
850 Outback Steakhouse, Inc..................... 32,190
7,000 Prime Hospitality Corp.*.................... 60,830
18,900 Scientific Games Corp., Class A*............ 215,649
13,800 Six Flags, Inc.*............................ 72,588
3,500 Starwood Hotels & Resorts Worldwide, Inc.... 121,800
9,300 Station Casinos, Inc........................ 284,580
62,860 Wendy's International, Inc.................. 2,030,378
14,060 Yum! Brands, Inc.*.......................... 416,457
----------
5,256,188
----------
HOUSEHOLD DURABLES - 0.75%
4,200 American Greetings Corp., Class A*.......... 81,606
10,305 Garmin Ltd.................................. 431,573
9,000 Interface, Inc., Class A*................... 48,780
5,700 Kimball International, Inc., Class B........ 83,562
22,860 Koninklijke (Royal) Philips Electronics NV.. 518,346
1,387,500 Land and Houses Public Co., Ltd., NVDR...... 419,404
60,000 Matsushita Electric Industrial Co., Ltd..... 724,319
SHARES VALUE
------ -----
HOUSEHOLD DURABLES (CONTINUED)
19,905 Matsushita Electric Industrial Co., Ltd., ADR.. $ 238,064
4,900 Meritage Corp.*................................ 231,525
5,600 Newell Rubbermaid, Inc......................... 121,352
7,400 Pioneer Corp................................... 183,647
900 Russ Berrie & Co, Inc.......................... 30,321
74,000 Sanyo Electric Co., Ltd........................ 310,174
1,900 Toro Co........................................ 85,500
----------
3,508,173
----------
INTERNET & CATALOG RETAIL - 0.55%
27,200 eBay, Inc.*.................................... 1,455,472
34,200 InterActiveCorp*............................... 1,130,310
----------
2,585,782
----------
LEISURE EQUIPMENT & PRODUCTS - 0.05%
5,400 Jakks Pacific, Inc.*........................... 65,826
2,900 Johnson Outdoors, Inc., Class A*............... 37,587
1,900 M&F Worldwide Corp.*........................... 18,297
4,600 Mattel, Inc.................................... 87,216
----------
208,926
----------
MEDIA - 2.05%
8,600 Alliance Atlantis Communications, Inc.,
Class B*....................................... 138,916
69,301 AOL Time Warner, Inc.*......................... 1,047,138
39,400 BEC World Public Co., Ltd...................... 232,286
3,800 Catalina Marketing Corp.*...................... 57,722
25,825 Clear Channel Communications, Inc.............. 989,098
1 Comcast Corp., Class A*........................ 31
6,150 COX Radio, Inc., Class A*...................... 134,500
5,100 Cumulus Media, Inc., Class A*.................. 86,955
108,200 Interpublic Group Companies, Inc.*............. 1,527,784
12,900 JC Decaux SA*.................................. 181,425
3,500 Journal Communications, Inc., Class A*......... 57,925
1,000 Knight-Ridder, Inc............................. 66,700
2,400 Liberty Corp................................... 100,680
82,245 Liberty Media Corp.*........................... 819,983
8,600 Lin TV Corp., Class A*......................... 182,836
16,500 McGraw-Hill Companies, Inc..................... 1,025,145
7,000 Mediacom Communications Corp.*................. 46,900
2,900 New York Times Co., Class A.................... 126,034
57,600 Pearson PLC.................................... 545,989
5,800 Radio One, Inc., Class D*...................... 83,288
16,700 Sinclair Broadcast Group, Inc., Class A*....... 169,672
9,700 TiVo, Inc.*.................................... 71,877
8,450 Univision Communications, Inc., Class A*....... 269,808
18,560 Viacom, Inc., Class B.......................... 710,848
10,190 VNU NV......................................... 298,853
2,850 Westwood One, Inc.*............................ 86,042
21,505 XM Satellite Radio Holdings, Inc., Class A*.... 333,973
38,200 Yell Group PLC*................................ 191,764
----------
9,584,172
----------
See Notes to Financial Statements.
25
Columbia Asset Allocation Fund
PORTFOLIO OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2003
SHARES VALUE
------ -----
MULTI-LINE RETAIL - 1.55%
2,300 BJ's Wholesale Club, Inc.*............. $ 44,551
23,700 Costco Wholesale Corp.*................ 736,596
1,800 Dollar Tree Stores, Inc.*.............. 60,300
4,600 Don Quijote Co., Ltd................... 234,923
2,350 Family Dollar Stores, Inc.............. 93,742
6,600 Federated Department Stores, Inc....... 276,540
19,615 Kohl's Corp.*.......................... 1,049,402
43,000 Seiyu Ltd.*............................ 140,870
3,800 ShopKo Stores, Inc.*................... 57,000
51,415 Target Corp............................ 1,934,746
162,000 Wal-Mart de Mexico SA de CV, Series V.. 469,277
38,740 Wal-Mart Stores, Inc................... 2,163,629
-----------
7,261,576
-----------
SPECIALTY RETAIL - 2.60%
2,200 Advance Auto Parts, Inc.*.............. 155,980
18,520 AutoZone, Inc.*........................ 1,658,096
23,105 Bed Bath & Beyond, Inc.*............... 882,149
27,300 Best Buy Co., Inc.*.................... 1,297,296
9,400 Blue Rhino Corp.*...................... 104,152
17,100 Bombay Co, Inc.*....................... 168,435
5,600 Borders Group, Inc.*................... 105,952
2,500 Building Material Holding Corp......... 32,750
33,990 Chico's FAS, Inc.*..................... 1,041,454
9,000 CompuCom Systems, Inc.*................ 37,800
3,300 Cost Plus, Inc.*....................... 121,836
4,000 Dress Barn, Inc.*...................... 54,800
5,900 Friedman's, Inc., Class A.............. 82,305
3,200 GameStop Corp., Class A*............... 50,880
7,300 Goody's Family Clothing, Inc........... 71,978
1,800 Hughes Supply, Inc..................... 58,410
22,162 Kesa Electricals PLC................... 82,058
64,160 Kingfisher PLC......................... 278,356
2,300 Linens 'n Things, Inc.*................ 54,694
39,055 Lowe's Companies, Inc.................. 2,026,954
3,700 Monro Muffler, Inc.*................... 109,520
3,900 Movie Gallery, Inc.*................... 76,635
23,020 Next PLC............................... 430,099
111,100 Office Depot, Inc.*.................... 1,560,955
5,000 Party City Corp.*...................... 61,900
6,900 PETCO Animal Supplies, Inc.*........... 215,280
12,200 Rent-Way, Inc.*........................ 65,514
2,000 Ross Stores, Inc....................... 92,720
7,200 Sharper Image Corp.*................... 166,032
4,200 Shimamura Co., Ltd..................... 295,921
3,700 TBC Corp.*............................. 92,685
10,500 TJX Companies, Inc..................... 203,910
3,800 Too, Inc.*............................. 55,974
4,100 United Rentals, Inc.*.................. 65,969
2,200 USS Co., Ltd........................... 136,247
6,450 Williams-Sonoma, Inc.*................. 174,021
-----------
12,169,717
-----------
SHARES VALUE
------ -----
TEXTILES, APPAREL & LUXURY GOODS - 0.42%
9,080 Coach, Inc.*................................. $ 495,768
1,700 Delta Apparel, Inc........................... 25,670
3,800 Kellwood Co.................................. 127,110
5,600 LVMH Moet Hennessy Louis Vuitton SA.......... 348,115
5,900 Maxwell Shoe Co., Class A*................... 84,724
1,600 Puma AG Rudolf Dassler Sport................. 202,633
9,300 Quiksilver, Inc.*............................ 148,335
2,900 Reebok International Ltd..................... 96,947
4,200 Russell Corp................................. 68,460
15,000 Sanyo Shokai Ltd............................. 97,204
5,200 Stride Rite Corp............................. 56,160
8,900 Warnaco Group, Inc.*......................... 138,751
3,500 Wolverine World Wide, Inc.................... 67,900
----------
1,957,777
----------
CONSUMER STAPLES - 3.97%
BEVERAGES - 0.98%
7,130 Anheuser-Busch Companies, Inc................ 351,794
5,200 Pepsi Bottling Group, Inc.................... 107,016
84,385 PepsiCo, Inc................................. 3,867,365
2,625 Pernod-Ricard SA............................. 248,668
----------
4,574,843
----------
FOOD & DRUG RETAILING - 0.37%
2,700 Performance Food Group Co.*.................. 109,917
5,000 Seven-Eleven Japan Co., Ltd.................. 160,212
22,030 Sysco Corp................................... 720,601
13,595 Whole Foods Market, Inc.*.................... 750,172
----------
1,740,902
----------
FOOD PRODUCTS - 1.20%
3,800 American Italian Pasta Co., Class A*......... 147,022
3,100 Central Garden and Pet Co.*.................. 80,972
85,900 ConAgra Foods, Inc........................... 1,824,516
4,200 Corn Products International, Inc............. 133,770
42,000 Dean Foods Co.*.............................. 1,303,260
1,500 Hormel Foods Corp............................ 34,470
45,600 Kraft Foods, Inc............................. 1,345,200
1,515 Nestle SA, Registered Shares................. 349,536
3,600 Omega Protein Corp.*......................... 23,580
4,500 Ralcorp Holdings, Inc.*...................... 124,650
124,200 Thai Union Frozen Products Public Co., Ltd... 89,978
9,000 Yakult Honsha Co., Ltd....................... 137,163
----------
5,594,117
----------
HOUSEHOLD PRODUCTS - 0.93%
23,100 Clorox Co.................................... 1,059,597
20,500 Kimberly-Clark Corp.......................... 1,052,060
20,075 Procter & Gamble Co.......................... 1,863,362
18,650 Reckitt Benckiser PLC........................ 375,112
----------
4,350,131
----------
See Notes to Financial Statements.
26
Columbia Asset Allocation Fund
PORTFOLIO OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2003
SHARES VALUE
------ -----
PERSONAL PRODUCTS - 0.24%
13,250 Alberto-Culver Co., Inc., Class B....... $ 779,365
2,600 Avon Products, Inc...................... 167,856
3,200 Inter Parfums, Inc...................... 32,000
2,391 L'Oreal SA.............................. 163,398
----------
1,142,619
----------
TOBACCO - 0.25%
16,500 Altria Group, Inc....................... 722,700
24,175 Imperial Tobacco Group PLC.............. 394,214
1,300 Schweitzer-Mauduit International, Inc... 32,825
----------
1,149,739
----------
ENERGY - 4.84%
ENERGY EQUIPMENT & SERVICES - 1.65%
56,700 Baker Hughes, Inc....................... 1,677,753
22,475 BJ Services Co.*........................ 767,971
80,100 Halliburton Co.......................... 1,942,425
14,800 Key Energy Services, Inc.*.............. 142,820
3,400 Lufkin Industries, Inc.................. 81,600
9,600 Matrix Service Co.*..................... 170,496
11,200 Maverick Tube Corp.*.................... 173,824
1,600 Nabors Industries Ltd.*................. 59,616
5,400 National-Oilwell, Inc.*................. 97,956
16,390 Noble Corp.*............................ 557,096
3,250 Patterson-UTI Energy, Inc.*............. 87,978
16,030 Schlumberger Ltd........................ 775,852
20,070 Smith International, Inc.*.............. 722,119
5,500 Transocean, Inc.*....................... 110,000
7,200 Unit Corp.*............................. 135,648
2,900 Universal Compression Holdings, Inc.*... 62,408
1,600 Weatherford International Ltd.*......... 60,448
9,000 Willbros Group, Inc.*................... 92,340
----------
7,718,350
----------
OIL & GAS - 3.19%
3,000 Amerada Hess Corp....................... 150,300
1,967 Apache Corp............................. 136,392
74,207 BP PLC, ADR............................. 3,124,115
2,300 Brown (Tom), Inc.*...................... 59,110
50,600 ConocoPhillips.......................... 2,770,350
109 Cross Timbers Royalty Trust............. 2,287
7,400 EnCana Corp............................. 267,945
34,000 ENI SpA................................. 519,772
74,900 Exxon Mobil Corp........................ 2,741,340
2,300 Frontier Oil Corp....................... 33,810
14,800 Harvest Natural Resources, Inc.*........ 91,020
77,900 Marathon Oil Corp....................... 2,220,150
1,700 Murphy Oil Corp......................... 99,875
2,100 Occidental Petroleum Corp............... 73,983
4,300 Patina Oil & Gas Corp................... 155,832
36,900 Royal Dutch Petroleum Co., NY Shares.... 1,630,980
1,179 Total SA................................ 178,041
3,800 Ultra Petroleum Corp.*.................. 53,010
8,400 Vintage Petroleum, Inc.................. 91,392
SHARES VALUE
------ -----
OIL & GAS (CONTINUED)
1,500 Western Gas Resources, Inc................ $ 57,000
4,300 Westport Resources Corp.*................. 101,222
18,599 XTO Energy, Inc........................... 390,393
-----------
14,948,319
-----------
FINANCIALS - 13.00%
BANKS - 3.63%
15,700 Anglo Irish Bank Corp., PLC............... 169,582
500 BancFirst Corp............................ 26,500
4,220 Banco Popular Espanol SA.................. 208,831
61,600 Banco Santander Central Hispano SA........ 522,531
3,900 BancorpSouth, Inc......................... 85,410
34,600 Bank of America Corp...................... 2,700,184
3,800 Bank of Granite Corp...................... 71,250
47,300 Bank of New York Co., Inc................. 1,376,903
43,300 Bank One Corp............................. 1,673,545
4,500 Banknorth Group, Inc...................... 126,990
50,900 Barclays PLC.............................. 390,680
4,200 Boston Private Financial Holdings, Inc.... 98,952
2,300 Bryn Mawr Bank Corp....................... 96,830
1,700 Capitol Bancorp Ltd....................... 45,475
3,800 Charter One Financial, Inc................ 116,280
3,745 Chemical Financial Corp................... 115,908
4,300 Chittenden Corp........................... 127,925
2,600 City National Corp........................ 132,496
3,000 Community First Bankshares, Inc........... 79,290
2,100 Community Trust Bancorp, Inc.............. 61,068
2,000 Corus Bankshares, Inc..................... 107,000
29,132 Credit Agricole SA........................ 567,893
25,970 Credit Suisse Group....................... 831,363
1,700 Cullen/Frost Bankers, Inc................. 63,291
3,500 East West Bancorp, Inc.................... 149,625
10,400 Fifth Third Bancorp....................... 576,888
600 First Citizens BancShares, Inc., Class A.. 63,420
1,950 First Financial Bankshares, Inc........... 72,072
4,000 Golden West Financial Corp................ 358,040
3,000 Greater Bay Bancorp....................... 62,400
4,350 Greenpoint Financial Corp................. 129,891
205,000 Grupo Financiero BBVA Bancomer SA de CV,
Class B*.................................. 179,177
900 Hancock Holding Co........................ 44,415
7,866 Hansabank Ltd............................. 180,560
1,410 MainSource Financial Group, Inc........... 36,533
1,300 MASSBANK Corp............................. 47,801
4,200 Mercantile Bank Corp...................... 139,440
3,000 Merchants Bancshares, Inc................. 84,840
5,400 Mid-State Bancshares...................... 120,258
4,300 North Fork Bancorporation, Inc............ 149,425
2,800 Northrim BanCorp., Inc.................... 51,660
700 Omega Financial Corp...................... 23,100
5,200 Prosperity Bancshares, Inc................ 110,812
6,000 Riggs National Corp....................... 94,500
13,087 Royal Bank of Scotland Group PLC.......... 332,834
600 S.Y. Bancorp, Inc......................... 11,250
298,200 Siam Commercial Bank Public Co., Ltd.*.... 292,613
2,800 Simmons First National Corp., Class A..... 65,968
See Notes to Financial Statements.
27
Columbia Asset Allocation Fund
PORTFOLIO OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2003
SHARES VALUE
------ -----
BANKS (CONTINUED)
10,000 Sovereign Bancorp, Inc................. $ 185,500
35,080 Standard Chartered Ltd., PLC........... 490,110
3,200 Sterling Bancshares, Inc............... 38,176
3,800 Trico Bancshares....................... 108,680
63,600 U.S. Bancorp........................... 1,525,764
182 UFJ Holdings, Inc...................... 717,121
10,000 Uniao de Bancos Brasileiros SA, ADR.... 198,000
80,500 UniCredito Italiano SpA................ 380,822
2,500 Webster Financial Corp................. 99,700
1,600 Whitney Holding Corp................... 54,400
-----------
16,971,972
-----------
DIVERSIFIED FINANCIALS - 5.08%
900 ASTA Funding, Inc...................... 23,390
1,700 Bear Stearns Companies, Inc............ 127,160
7,500 Cash America International, Inc........ 123,000
192,690 Citigroup, Inc......................... 8,769,322
5,550 Commercial Capital Bancorp, Inc.*...... 86,746
2,200 CompuCredit Corp.*..................... 38,500
11,200 Euronext NV............................ 272,880
14,070 Fannie Mae............................. 987,714
30,301 Freddie Mac............................ 1,586,257
12,610 Goldman Sachs Group, Inc............... 1,057,979
31,400 ING Groep NV........................... 575,518
7,100 Investors Financial Services Corp...... 222,940
68,300 J.P. Morgan Chase & Co................. 2,344,739
11,400 Janus Capital Group, Inc............... 159,258
4,800 Jefferies Group, Inc................... 138,000
3,500 LaBranche & Co, Inc.................... 51,100
1,900 Lehman Brothers Holdings, Inc.......... 131,252
11,500 Metris Companies, Inc.................. 47,380
9,300 MFC Bancorp Ltd........................ 128,247
4,900 MTC Technologies, Inc.*................ 113,680
17,000 Nomura Holdings, Inc................... 274,649
58,800 SPDR Trust Series 1.................... 5,877,060
14,500 State Street Corp...................... 652,500
-----------
23,789,271
-----------
INSURANCE - 2.93%
5,900 Allianz AG, Registered Shares.......... 521,101
28,200 Ambac Financial Group, Inc............. 1,804,800
56,215 American International Group, Inc...... 3,243,606
1,500 AmerUs Group Co........................ 51,000
2,800 Axis Capital Holdings Ltd.............. 69,860
29 Berkshire Hathaway, Inc., Class A*..... 2,175,000
1,500 Cincinnati Financial Corp.............. 59,940
4,500 CNA Surety Corp.*...................... 45,225
1,900 Commerce Group, Inc.................... 72,124
55 Daido Life Insurance Co., Ltd.......... 162,904
2,700 Delphi Financial Group, Inc., Class A.. 125,604
4,200 Horace Mann Educators Corp............. 60,942
5,300 Infinity Property & Casualty Corp...... 148,983
19,200 Irish Life & Permanent PLC............. 252,131
500 Kansas City Life Insurance Co.......... 22,930
52,400 Lincoln National Corp.................. 1,853,912
SHARES VALUE
------ -----
INSURANCE (CONTINUED)
1,600 Loews Corp.................................... $ 64,592
18,900 MGIC Investment Corp.......................... 984,123
49 Millea Holdings, Inc.......................... 554,144
21,000 Mitsui Sumitomo Insurance Co., Ltd............ 153,049
2,300 Nationwide Financial Services, Inc., Class A.. 72,082
1,200 Navigators Group, Inc.*....................... 39,252
3,400 Philadelphia Consolidated Holding Co.*........ 157,080
9,600 Phoenix Companies, Inc........................ 110,880
5,000 PMI Group, Inc................................ 168,750
3,600 Radian Group, Inc............................. 159,840
4,800 RLI Corp...................................... 158,016
2,300 St. Paul Companies, Inc....................... 85,169
3,600 Stancorp Financial Group, Inc................. 206,820
2,800 State Auto Financial Corp..................... 70,616
3,900 Universal American Financial Corp.*........... 34,515
-----------
13,688,990
-----------
REAL ESTATE - 1.36%
4,200 Alexandria Real Estate Equities, Inc., REIT... 201,726
2,800 AMB Property Corp., REIT...................... 86,268
16,700 American Financial Realty Trust............... 235,470
2,850 Apartment Investment & Management Co.,
Class A, REIT................................. 112,176
4,050 Archstone-Smith Trust, REIT................... 106,839
2,050 Avalonbay Communities, Inc., REIT............. 95,940
2,150 Boston Properties, Inc., REIT................. 93,460
7,900 Boykin Lodging Co., REIT...................... 65,096
2,400 Brookfield Properties Corp.................... 56,400
1,700 CarrAmerica Realty Corp., REIT................ 50,745
2,100 Catellus Development Corp..................... 51,345
1,500 Centerpoint Properties Trust, REIT............ 102,165
1,300 Chelsea Property Group, Inc., REIT............ 62,270
7,700 Cousins Properties, Inc., REIT................ 213,675
5,800 Duke Realty Corp., REIT....................... 169,360
2,800 Eastgroup Properties, Inc., REIT.............. 77,784
5,600 Equity Office Properties Trust, REIT.......... 154,168
4,500 Equity One, Inc., REIT........................ 76,500
3,850 Equity Residential, REIT...................... 112,728
2,500 First Industrial Realty Trust, Inc., REIT..... 80,175
3,820 General Growth Properties, Inc., REIT......... 273,894
3,000 Getty Realty Corp., REIT...................... 73,500
3,600 Gladstone Comercial Corp.*.................... 53,096
7,050 iStar Financial, Inc., REIT................... 274,598
3,000 Keystone Property Trust Corp., REIT........... 60,780
3,300 Kimco Realty Corp., REIT...................... 135,201
3,800 Liberty Property Trust, REIT.................. 140,524
1,150 Manufactured Home Communities, Inc., REIT..... 45,057
3,000 Mid-America Apartment Communities, Inc.,
REIT.......................................... 90,540
80,000 Mitsubishi Estate Co., Ltd.................... 757,528
4,900 Nationwide Health Properties, Inc., REIT...... 85,701
3,900 Newcastle Investment Corp..................... 89,661
1,700 Pan Pacific Retail Properties, Inc., REIT..... 73,100
520 Parkway Properties, Inc., REIT................ 22,724
1,200 Prentiss Properties Trust, REIT............... 37,200
8,550 ProLogis, REIT................................ 258,638
See Notes to Financial Statements.
28
Columbia Asset Allocation Fund
PORTFOLIO OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2003
SHARES VALUE
------ -----
REAL ESTATE (CONTINUED)
3,200 PS Business Parks, Inc., REIT................... $ 120,768
3,600 Public Storage, Inc., REIT...................... 141,228
1,450 Reckson Associates Realty Corp., REIT........... 33,510
5,000 Regency Centers Corp., REIT..................... 184,250
4,800 Rouse Co., REIT................................. 200,160
6,700 Simon Property Group, Inc., REIT................ 291,986
1,550 SL Green Realty Corp., REIT..................... 55,970
4,200 St. Joe Co...................................... 134,736
26,000 Sun Hung Kai Properties Ltd..................... 210,668
2,400 Taubman Centers, Inc., REIT..................... 47,040
3,000 United Dominion Realty Trust, Inc., REIT........ 54,930
2,000 Universal Health Realty, Income, REIT........... 54,300
4,400 Urstadt Biddle Properties, Inc., Class A, REIT.. 59,400
2,250 Vornado Realty Trust, REIT...................... 108,090
----------
6,373,068
----------
HEALTH CARE - 9.09%
BIOTECHNOLOGY - 1.00%
42,530 Amgen, Inc.*.................................... 2,746,162
1,864 Amylin Pharmaceuticals, Inc.*................... 52,639
12,100 BioMarin Pharmaceuticals, Inc.*................. 92,686
7,700 Ciphergen Biosystems, Inc.*..................... 95,095
8,400 Cytogen Corp.*.................................. 90,048
15,315 Gilead Sciences, Inc.*.......................... 856,568
1,600 ICOS Corp.*..................................... 61,312
5,800 Ilex Oncology, Inc.*............................ 96,338
2,400 Neurocrine Biosciences, Inc.*................... 118,848
9,100 Protein Design Labs, Inc.*...................... 126,126
14,200 Serologicals Corp.*............................. 186,730
6,800 Telik, Inc.*.................................... 136,340
----------
4,658,892
----------
HEALTH CARE EQUIPMENT & SUPPLIES - 1.72%
17,960 Alcon, Inc...................................... 1,008,454
4,700 Biomet, Inc..................................... 157,967
3,400 Bio-Rad Laboratories, Inc., Class A*............ 173,400
19,365 Boston Scientific Corp.*........................ 1,235,487
9,300 Cytyc Corp.*.................................... 139,872
1,100 Hillenbrand Industries, Inc..................... 62,062
6,500 Integra LifeSciences Holdings Corp.*............ 183,885
4,800 Kyphon, Inc.*................................... 93,600
11,600 Medical Action Industries, Inc.*................ 151,032
39,025 Medtronic, Inc.................................. 1,831,053
4,833 Merit Medical Systems, Inc.*.................... 106,809
11,700 Noven Pharmaceuticals, Inc.*.................... 133,380
19,000 Olympus Optical Co., Ltd........................ 453,619
5,000 ResMed, Inc.*................................... 219,900
2,000 Respironics, Inc.*.............................. 83,560
54,540 Smith & Nephew PLC.............................. 359,010
3,400 Sola International, Inc.*....................... 54,400
10,300 SonoSite, Inc.*................................. 206,103
20,960 St. Jude Medical, Inc.*......................... 1,127,019
1,410 Varian Medical Systems, Inc.*................... 81,047
SHARES VALUE
------ -----
HEALTH CARE EQUIPMENT & SUPPLIES (CONTINUED)
5,200 Wright Medical Group, Inc.*............... $ 131,456
2,200 Zoll Medical Corp.*....................... 70,510
-----------
8,063,625
-----------
HEALTH CARE PROVIDERS & SERVICES - 2.16%
37,700 Aetna, Inc................................ 2,300,831
11,675 Anthem, Inc.*............................. 832,778
83,060 Caremark Rx, Inc.*........................ 1,877,156
6,100 Chronimed, Inc.*.......................... 55,693
4,700 Community Health Systems, Inc.*........... 101,990
2,200 Cross Country Healthcare, Inc.*........... 30,998
4,500 DaVita, Inc.*............................. 143,235
11,500 First Health Group Corp.*................. 300,725
4,700 Genesis Health Ventures, Inc.*............ 113,975
3,100 HCA, Inc.................................. 114,266
4,400 Health Management Associates, Inc......... 95,964
3,100 Humana, Inc.*............................. 55,955
2,500 Kindred Healthcare, Inc.*................. 93,625
3,100 LifePoint Hospitals, Inc.*................ 74,555
2,900 Lincare Holdings, Inc.*................... 106,285
1,500 Maximus, Inc.*............................ 51,675
40,165 McKesson Corp............................. 1,337,093
1,200 PacifiCare Health Systems*................ 58,560
2,200 Pediatrix Medical Group, Inc.*............ 101,310
3,000 Province Healthcare Co.*.................. 38,850
13,000 Stewart Enterprises, Inc., Class A*....... 49,400
14,800 U.S. Oncology, Inc.*...................... 108,188
3,400 U.S. Physical Therapy, Inc.*.............. 41,585
27,570 UnitedHealth Group, Inc................... 1,387,322
6,400 WellChoice, Inc.*......................... 192,832
5,550 WellPoint Health Networks, Inc.*.......... 427,794
-----------
10,092,640
-----------
PHARMACEUTICALS - 4.21%
22,615 Abbott Laboratories....................... 962,268
8,100 Andrx Corp.*.............................. 149,931
4,100 Barr Laboratories, Inc.*.................. 279,661
34,465 Biovail Corp.*............................ 1,280,375
46,200 Bristol-Myers Squibb Co................... 1,185,492
1,200 Caraco Pharmaceutical Laboratories Ltd.*.. 11,795
31,000 Chugai Pharmaceutical Co., Ltd............ 387,587
2,100 DOV Pharmaceutical, Inc.*................. 37,695
11,700 Dr. Reddy's Laboratories Ltd., ADR........ 274,365
27,930 GlaxoSmithKline PLC....................... 579,869
2,800 InterMune, Inc.*.......................... 53,424
6,898 Medco Health Solutions, Inc.*............. 178,865
53,100 Merck & Co., Inc.......................... 2,687,922
13,200 Nektar Therapeutics*...................... 168,960
16,580 Novartis AG, Registered Shares............ 641,944
197,905 Pfizer, Inc............................... 6,012,354
9,200 Ranbaxy Laboratories Ltd., GDR............ 199,180
9,300 Salix Pharmaceuticals Ltd.*............... 179,118
4,109 Sanofi-Synthelabo SA...................... 249,923
2,900 Sawai Pharmaceutical Co., Ltd............. 91,361
7,700 SICOR, Inc.*.............................. 148,456
See Notes to Financial Statements.
29
Columbia Asset Allocation Fund
PORTFOLIO OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2003
SHARES VALUE
------ -----
PHARMACEUTICALS (CONTINUED)
1,300 Stada Arzneimittel AG..................... $ 69,679
4,000 Takeda Chemical Industries Ltd............ 146,120
4,700 Taro Pharmaceuticals Industries Ltd.*..... 264,892
29,020 Teva Pharmaceutical Industries Ltd., ADR.. 1,658,493
18,720 Watson Pharmaceuticals, Inc.*............. 780,437
21,875 Wyeth..................................... 1,008,438
-----------
19,688,604
-----------
INDUSTRIALS - 6.39%
AEROSPACE & DEFENSE - 1.14%
1,000 Alliant Techsystems, Inc.*................ 48,050
4,700 Armor Holdings, Inc.*..................... 78,725
5,900 DRS Technologies, Inc.*................... 142,367
18,100 General Dynamics Corp..................... 1,412,886
3,200 Herley Industries, Inc.*.................. 56,064
79,200 Honeywell International, Inc.............. 2,086,920
2,700 Invision Technologies, Inc.*.............. 65,718
6,800 Ladish Co., Inc.*......................... 42,500
3,500 Mercury Computer Systems, Inc.*........... 74,655
600 Northrop Grumman Corp..................... 51,732
2,600 Precision Castparts Corp.................. 91,260
42,800 Raytheon Co............................... 1,198,400
-----------
5,349,277
-----------
AIR FREIGHT & LOGISTICS - 0.26%
2,400 CNF, Inc.................................. 76,920
12,200 EGL, Inc.*................................ 221,796
11,145 FedEx Corp................................ 718,072
3,100 Ryder System, Inc......................... 90,892
2,800 UTI Worldwide, Inc........................ 85,484
-----------
1,193,164
-----------
AIRLINES - 0.09%
8,200 AMR Corp.*................................ 93,890
6,200 Atlantic Coast Airlines Holdings, Inc.*... 52,762
3,600 Mair Holdings, Inc.*...................... 24,444
31,000 Singapore Airlines Ltd.................... 190,025
4,700 Skywest, Inc.............................. 81,404
-----------
442,525
-----------
BUILDING PRODUCTS - 0.16%
12,700 Jacuzzi Brands, Inc.*..................... 78,740
3,500 NCI Building Systems, Inc.*............... 69,650
103,000 Siam Cement Public Co., Ltd., NVDR........ 476,018
5,300 Watsco, Inc............................... 101,283
-----------
725,691
-----------
COMMERCIAL SERVICES & SUPPLIES - 1.67%
5,400 ActivCard Corp.*.......................... 44,280
5,800 Adecco SA, Registered Shares.............. 286,748
8,300 Allied Waste Industries, Inc.*............ 89,640
SHARES VALUE
------ -----
COMMERCIAL SERVICES & SUPPLIES (CONTINUED)
89,375 Amadeus Global Travel Distribution SA,
Class A..................................... $ 562,354
3,800 Arbitron, Inc.*............................. 134,140
8,100 Brink's Co.................................. 140,616
47,831 Capita Group PLC............................ 195,587
10,800 Casella Waste Systems, Inc., Class A*....... 134,136
10,400 Cendant Corp.*.............................. 194,376
12,000 Century Business Services, Inc.*............ 50,880
4,150 ChoicePoint, Inc.*.......................... 139,025
1,500 Cintas Corp................................. 55,260
52,600 Concord EFS, Inc.*.......................... 719,042
4,500 Consolidated Graphics, Inc.*................ 114,435
5,900 Corporate Executive Board Co.*.............. 277,005
3,200 DST Systems, Inc.*.......................... 120,320
2,000 Electro Rent Corp.*......................... 25,020
25,930 First Data Corp............................. 1,036,163
5,000 FTI Consulting, Inc.*....................... 86,750
3,000 Half (Robert) International, Inc.*.......... 58,500
4,400 Healthcare Services Group, Inc.............. 72,600
4,900 Imagistics International, Inc.*............. 142,002
9,100 Integrated Alarm Services Group, Inc.*...... 76,021
2,700 Ionics, Inc.*............................... 66,042
3,100 Manpower, Inc............................... 115,010
5,000 Monster Worldwide, Inc.*.................... 125,900
5,400 Navigant Consulting, Inc.*.................. 66,474
8,500 NCO Group, Inc.*............................ 199,495
1,700 RemedyTemp, Inc., Class A*.................. 20,400
3,000 SOURCECORP, Inc.*........................... 69,750
3,000 Sylvan Learning Systems, Inc.*.............. 81,840
6,300 TeleTech Holdings, Inc.*.................... 40,005
80,900 Waste Management, Inc....................... 2,117,153
3,650 Weight Watchers International, Inc.*........ 151,840
----------
7,808,809
----------
CONSTRUCTION & ENGINEERING - 0.08%
4,300 Chicago Bridge & Iron Co. NV, NY Shares..... 116,788
10,100 Comfort Systems USA, Inc.*.................. 38,481
1,400 EMCOR Group, Inc.*.......................... 59,570
7,400 Mastec, Inc.*............................... 71,780
3,000 Quanta Services, Inc.*...................... 24,810
5,000 Shaw Group, Inc.*........................... 52,550
----------
363,979
----------
ELECTRICAL EQUIPMENT - 0.11%
6,900 American Power Conversion Corp.............. 118,266
1,500 Ametek, Inc................................. 64,290
5,200 C&D Technologies, Inc....................... 98,384
1,700 Genlyte Group, Inc.*........................ 75,684
2,000 Tecumseh Products Co., Class A.............. 74,620
1,700 Woodward Governor Co........................ 74,307
----------
505,551
----------
See Notes to Financial Statements.
30
Columbia Asset Allocation Fund
PORTFOLIO OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2003
SHARES VALUE
------ -----
INDUSTRIAL CONGLOMERATES - 1.87%
43,200 Burberry Group PLC........................ $ 233,739
3,200 Carlisle Companies, Inc................... 139,584
5,900 Denbury Resources, Inc.*.................. 72,924
139,660 General Electric Co....................... 4,163,265
2,700 MMC Norilsk Nickel, ADR................... 132,975
3,800 Siemens AG, Registered Shares............. 226,436
15,300 Smiths Group PLC.......................... 170,143
63,900 Textron, Inc.............................. 2,520,855
52,170 Tyco International Ltd.................... 1,065,833
----------
8,725,754
----------
MACHINERY - 0.60%
4,600 AGCO Corp.*............................... 78,844
2,100 Alamo Group, Inc.......................... 29,946
10,900 Atlas Copco AB, Class B................... 293,313
1,600 Briggs & Stratton Corp.................... 94,016
3,500 Cuno, Inc.*............................... 137,165
31,300 Dover Corp................................ 1,107,081
4,400 Esterline Technologies Corp.*............. 84,876
3,400 Harsco Corp............................... 130,798
2,000 Ingersoll-Rand Co., Class A............... 106,880
4,400 Kadant, Inc.*............................. 84,304
4,500 Linde AG.................................. 185,407
2,400 Mueller Industries, Inc.*................. 61,080
5,000 Navistar International Corp.*............. 186,400
1,000 Oshkosh Truck Corp........................ 39,610
1,700 Parker Hannifin Corp...................... 75,990
8,500 UNOVA, Inc.*.............................. 124,525
----------
2,820,235
----------
ROAD & RAIL - 0.12%
3,400 Covenant Transport, Inc., Class A*........ 62,560
4,800 Dollar Thrifty Automotive Group, Inc.*.... 109,056
6,800 Genesee & Wyoming, Inc., Class A*......... 161,228
4,200 Heartland Express, Inc.................... 100,884
3,600 Kansas City Southern*..................... 39,852
1,000 Marten Transport Ltd.*.................... 26,100
2,100 Old Dominion Freight Line, Inc.*.......... 61,089
2,000 U.S. Xpress Enterprises, Inc., Class A*... 24,500
----------
585,269
----------
TRADING COMPANIES & DISTRIBUTORS - 0.13%
2,850 CDW Corp.................................. 164,559
3,200 Fastenal Co............................... 120,960
3,350 Grainger (W.W.), Inc...................... 159,292
22,000 Mitsubishi Corp........................... 188,969
----------
633,780
----------
TRANSPORTATION INFRASTRUCTURE - 0.16%
33,790 BAA PLC................................... 260,617
170,000 Cosco Pacific Ltd......................... 193,172
508,000 Zhejiang Expressway Co., Ltd., Class H.... 286,982
----------
740,771
----------
SHARES VALUE
------ -----
INFORMATION TECHNOLOGY - 10.96%
COMMUNICATIONS EQUIPMENT - 1.61%
17,800 3Com Corp.*................................. $ 105,020
4,700 Advanced Fibre Communications, Inc.*........ 98,559
16,920 Alcatel SA, ADR............................. 200,164
6,100 Anaren, Inc.*............................... 77,836
21,352 Andrew Corp.*............................... 262,416
1,900 Black Box Corp.............................. 75,639
5,800 Cable Design Technologies Corp.*............ 46,400
180,765 Cisco Systems, Inc.*........................ 3,532,148
5,500 Comverse Technology, Inc.*.................. 82,280
3,900 F5 Networks, Inc.*.......................... 75,036
39,300 Finisar Corp.*.............................. 88,425
8,350 Motorola, Inc............................... 99,950
77,600 Nokia Oyj, ADR.............................. 1,210,560
114,600 Nortel Networks Corp.*...................... 470,959
16,100 Optical Communication Products, Inc.,
Class A*.................................... 37,996
14,880 QUALCOMM, Inc............................... 619,603
2,500 Scientific-Atlanta, Inc..................... 77,875
3,700 Tollgrade Communications, Inc.*............. 59,459
9,425 UTStarcom, Inc.*............................ 299,809
----------
7,520,134
----------
COMPUTERS & PERIPHERALS - 1.08%
3,000 Advanced Digital Information Corp.*......... 42,060
3,700 Agilysys, Inc............................... 32,449
5,900 Applied Films Corp.*........................ 175,407
15,600 Cray, Inc.*................................. 171,288
77,275 Dell, Inc.*................................. 2,580,212
3,200 Electronics for Imaging*.................... 74,624
900 Imation Corp................................ 29,385
3,100 Intergraph Corp.*........................... 72,168
14,170 International Business Machines Corp........ 1,251,636
8,200 Iomega Corp.*............................... 91,348
6,240 Lexmark International, Inc.*................ 393,182
16,400 Pinnacle Systems, Inc.*..................... 138,252
----------
5,052,011
----------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.35%
15,100 Agilent Technologies, Inc.*................. 333,861
6,970 Amphenol Corp., Class A*.................... 362,788
1,300 Analogic Corp............................... 62,400
5,200 Anixter International, Inc.*................ 118,404
5,100 Arrow Electronics, Inc.*.................... 93,789
6,595 AU Optronics Corp., ADR..................... 84,152
7,400 AVX Corp.................................... 101,306
1,700 Benchmark Electronics, Inc.*................ 71,859
64,700 Celestica, Inc.*............................ 1,026,142
4,600 Checkpoint Systems, Inc.*................... 72,680
4,200 Coherent, Inc.*............................. 103,446
50,420 Flextronics International Ltd.*............. 714,956
6,500 Global Imaging Systems, Inc.*............... 159,900
12,000 Ibiden Co., Ltd............................. 181,053
6,700 Itron, Inc.*................................ 134,469
4,600 Jabil Circuit, Inc.*........................ 119,830
See Notes to Financial Statements.
31
Columbia Asset Allocation Fund
PORTFOLIO OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2003
SHARES VALUE
------ -----
ELECTRONIC EQUIPMENT & INSTRUMENTS (CONTINUED)
800 Keyence Corp.................................. $ 170,318
3,600 Littelfuse, Inc.*............................. 82,800
2,900 Millipore Corp.*.............................. 133,574
5,000 MTS Systems Corp.............................. 76,100
7,700 NU Horizons Electronics Corp.*................ 67,067
3,000 OSI Systems, Inc.*............................ 51,900
6,800 Planar Systems, Inc.*......................... 145,860
6,300 Plexus Corp.*................................. 97,902
2,000 Samsung Electronics Co., Ltd., GDR............ 338,000
2,920 Samsung Electronics Co., Ltd., GDR (c)........ 493,480
10,500 Sanmina-SCI Corp.*............................ 101,850
19,300 Superconductor Technologies, Inc.*............ 75,849
6,250 Symbol Technologies, Inc...................... 74,688
4,200 TDK Corp...................................... 249,930
1,800 Tech Data Corp.*.............................. 55,530
3,000 Varian, Inc.*................................. 93,960
14,900 Vishay Intertechnology, Inc.*................. 261,048
----------
6,310,891
----------
INTERNET SOFTWARE & SERVICES - 0.28%
4,100 Digital River, Inc.*.......................... 112,135
10,400 Digitas, Inc.*................................ 75,504
3,900 PEC Solutions, Inc.*.......................... 57,564
2,665 Sohu.com, Inc.*............................... 82,882
26,800 T-Online International AG*.................... 268,243
10,700 webMethods, Inc.*............................. 85,386
17,420 Yahoo!, Inc.*................................. 616,320
----------
1,298,034
----------
IT CONSULTING & SERVICES - 0.88%
120,110 Accenture Ltd., Class A*...................... 2,683,257
4,500 Acxiom Corp.*................................. 70,920
4,200 Affiliated Computer Services, Inc., Class A*.. 204,498
8,000 American Management Systems, Inc.*............ 102,000
4,200 Anteon International Corp.*................... 128,520
3,300 Cognizant Technology Solutions Corp.*......... 120,351
8,500 Computer Horizons Corp.*...................... 31,450
10,700 GRIC Communications, Inc.*.................... 75,221
32,900 Indra Sistemas SA............................. 384,501
6,000 Inforte Corp.*................................ 50,400
21,200 Management Network Group, Inc.*............... 53,000
16,700 MPS Group, Inc.*.............................. 150,300
3,400 Priority Healthcare Corp., Class B*........... 69,836
----------
4,124,254
----------
OFFICE ELECTRONICS - 0.55%
10,000 Canon, Inc.................................... 490,060
4,955 Canon, Inc., ADR.............................. 241,408
172,800 Xerox Corp.*.................................. 1,772,928
1,500 Zebra Technologies Corp., Class A*............ 77,355
----------
2,581,751
----------
SHARES VALUE
------ -----
SEMICONDUCTOR EQUIPMENT & PRODUCTS - 2.95%
33,660 Advanced Micro Devices, Inc.*................. $ 373,963
46,000 Agere Systems, Inc., Class A*................. 141,220
3,200 Altera Corp.*................................. 60,480
6,000 Amkor Technology, Inc.*....................... 85,260
13,720 Analog Devices, Inc.*......................... 521,634
85,800 ARM Holdings PLC*............................. 139,769
8,400 Artisan Components, Inc.*..................... 141,204
39,125 ASML Holding NV, Registered Shares*........... 513,711
3,800 August Technology Corp.*...................... 54,112
8,300 Brooks Automation, Inc.*...................... 173,470
2,600 Cymer, Inc.*.................................. 107,120
3,900 DSP Group, Inc.*.............................. 97,149
3,300 Dupont Photomasks, Inc.*...................... 74,943
16,000 Entegris, Inc.*............................... 180,800
4,700 Exar Corp.*................................... 66,411
7,400 Fairchild Semiconductor International, Inc.*.. 122,692
8,900 FSI International, Inc.*...................... 45,390
10,500 GlobespanVirata, Inc.*........................ 75,810
7,165 Infineon Technologies AG, ADR................. 92,357
2,200 Integrated Circuit Systems, Inc.*............. 66,088
4,000 Integrated Device Technology, Inc.*........... 49,680
168,260 Intel Corp.................................... 4,628,833
13,120 Intersil Corp., Class A....................... 312,256
14,900 Lattice Semiconductor Corp.*.................. 105,939
8,200 Linear Technology Corp........................ 293,642
22,475 Marvell Technology Group Ltd.*................ 848,431
3,025 Maxim Integrated Products, Inc................ 119,488
5,000 MEMC Electronic Materials, Inc.*.............. 54,550
17,875 Microchip Technology, Inc..................... 427,928
11,100 Monolithic System Technology, Inc.*........... 93,351
5,500 Mykrolis Corp.*............................... 66,770
2,300 National Semiconductor Corp.*................. 74,267
1,900 NEC Electronics Corp.......................... 130,117
13,000 Nikon Corp.................................... 180,855
3,400 Novellus Systems, Inc.*....................... 114,750
7,860 NVIDIA Corp.*................................. 125,060
4,700 Pericom Semiconductor Corp.*.................. 47,000
7,445 PMC - Sierra, Inc.*........................... 98,207
27,000 Silicon Image, Inc.*.......................... 121,770
15,300 Silicon Storage Technology, Inc.*............. 133,875
7,300 Skyworks Solutions, Inc.*..................... 66,430
120,848 Taiwan Semiconductor Manufacturing Co.,
Ltd., ADR*.................................... 1,308,784
3,440 Teradyne, Inc.*............................... 63,984
6,560 Texas Instruments, Inc........................ 149,568
8,300 Tokyo Electron Ltd............................ 552,762
42,500 United Microelectronics Corp., ADR*........... 191,675
6,640 Xilinx, Inc.*................................. 189,306
7,500 Zoran Corp.*.................................. 146,250
-----------
13,829,111
-----------
SOFTWARE - 2.26%
9,350 Activision, Inc.*............................. 111,732
24,890 Amdocs Ltd.*.................................. 467,932
7,200 BEA Systems, Inc.*............................ 86,760
6,100 BMC Software, Inc.*........................... 84,973
See Notes to Financial Statements.
32
Columbia Asset Allocation Fund
PORTFOLIO OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2003
SHARES VALUE
------ -----
SOFTWARE (CONTINUED)
17,100 Borland Software Corp.*......................... $ 157,491
7,500 Captiva Software Corp.*......................... 56,175
9,000 Dassault Systemes SA............................ 315,653
5,900 Documentum, Inc.*............................... 125,729
11,130 Electronic Arts, Inc.*.......................... 1,026,520
9,200 Epicor Software Corp.*.......................... 82,248
3,300 Fair Isaac Corp................................. 194,568
4,400 Henry (Jack) & Associates, Inc.................. 76,516
2,050 Intuit, Inc.*................................... 98,892
6,000 Lawson Software, Inc.*.......................... 42,540
5,600 Magma Design Automation, Inc.*.................. 109,872
3,550 Mercury Interactive Corp.*...................... 161,206
17,100 Micromuse, Inc.*................................ 139,878
176,960 Microsoft Corp.................................. 4,917,718
8,600 MSC.Software Corp.*............................. 61,920
4,500 NetIQ Corp.*.................................... 53,730
14,900 Novell, Inc.*................................... 79,417
32,900 OpenTV Corp.*................................... 108,570
39,125 Oracle Corp.*................................... 438,982
3,300 PeopleSoft, Inc.*............................... 60,027
11,300 PLATO Learning, Inc.*........................... 87,123
4,900 Reynolds & Reynolds Co., Class A................ 134,995
6,250 Siebel Systems, Inc.*........................... 60,750
5,400 Sybase, Inc.*................................... 91,854
1,700 Symantec Corp.*................................. 107,134
2,400 Take-Two Interactive Software, Inc.*............ 82,008
6,100 Transaction Systems Architects, Inc., Class A*.. 101,321
24,425 VERITAS Software Corp.*......................... 766,945
6,200 Verity, Inc.*................................... 81,034
-----------
10,572,213
-----------
MATERIALS - 1.76%
CHEMICALS - 0.65%
28,200 Air Products & Chemicals, Inc................... 1,271,820
2,300 Cytec Industries, Inc.*......................... 83,950
3,400 Eastman Chemical Co............................. 113,900
2,000 Ecolab, Inc..................................... 50,500
3,500 Engelhard Corp.................................. 96,845
2,600 Fuller (H.B.) Co................................ 63,102
6,700 Hercules, Inc.*................................. 75,911
6,300 International Flavors & Fragrances, Inc......... 208,404
1,589 L'Air Liquide SA................................ 224,587
6,300 Lubrizol Corp................................... 204,435
1,700 Minerals Technologies, Inc...................... 86,530
2,000 PPG Industries, Inc............................. 104,440
2,400 Praxair, Inc.................................... 148,680
3,500 Schulman (A.), Inc.............................. 55,510
5,300 Shin-Etsu Chemical Co., Ltd..................... 199,794
2,200 Stepan Co....................................... 50,116
-----------
3,038,524
-----------
CONSTRUCTION MATERIALS - 0.04%
7,700 Amcol International Corp........................ 95,172
2,200 Centex Construction Products, Inc............... 98,274
-----------
193,446
-----------
SHARES VALUE
------ -----
CONTAINERS & PACKAGING - 0.21%
50,730 Amcor Ltd.................................. $ 300,229
2,000 Aptargroup, Inc............................ 73,380
4,000 Crown Holdings, Inc.*...................... 27,000
2,600 Greif, Inc., Class A....................... 67,600
8,700 Jarden Corp.*.............................. 328,425
3,300 Packaging Corporation of America*.......... 64,086
5,100 Smurfit-Stone Container Corp.*............. 76,398
800 Temple-Inland, Inc......................... 38,840
----------
975,958
----------
METALS & MINING - 0.23%
71,999 BHP Billiton, Ltd.......................... 517,200
4,700 Carpenter Technology Corp.................. 100,768
5,200 Companhia Vale do Rio Doce, ADR............ 191,880
6,700 Peabody Energy Corp........................ 210,179
6,000 RTI International Metals, Inc.*............ 63,120
----------
1,083,147
----------
PAPER & FOREST PRODUCTS - 0.63%
1,800 Boise Cascade Corp......................... 49,680
4,950 Bowater, Inc............................... 208,197
5,400 Georgia-Pacific Corp....................... 130,896
2,500 Glatfelter................................. 29,450
4,200 International Paper Co..................... 163,884
48,150 MeadWestvaco Corp.......................... 1,227,825
2,600 Mercer International, Inc.................. 15,938
26,000 Stora Enso Oyj, Class R.................... 322,038
12,850 UPM-Kymmene Oyj............................ 215,459
10,200 Weyerhaeuser Co............................ 596,190
----------
2,959,557
----------
TELECOMMUNICATION SERVICES - 2.15%
DIVERSIFIED TELECOMMUNICATION SERVICES - 1.55%
74,500 BellSouth Corp............................. 1,764,160
75,700 Level 3 Communications, Inc.*.............. 410,294
42 Nippon Telegraph & Telephone Corp.......... 190,746
3,500 North Pittsburgh Systems, Inc.............. 59,255
8,400 PT Telekomunikasi Indonesia, ADR........... 114,492
1 Qwest Communications International, Inc.*.. 3
61,500 SBC Communications, Inc.................... 1,368,375
134,015 Telecom Italia SpA......................... 330,266
55,707 Telefonica SA.............................. 658,185
72,015 Verizon Communications, Inc................ 2,336,167
----------
7,231,943
----------
WIRELESS TELECOMMUNICATION SERVICES - 0.60%
46,540 American Tower Corp., Class A*............. 472,381
40,360 AT&T Wireless Services, Inc.*.............. 330,145
20,605 Crown Castle International Corp.*.......... 193,893
3,900 Metro One Telecommunications*.............. 13,572
163 NTT DoCoMo, Inc............................ 399,399
4,500 Price Communications Corp.*................ 55,800
4,000 Telephone & Data Systems, Inc.............. 226,160
See Notes to Financial Statements.
33
Columbia Asset Allocation Fund
PORTFOLIO OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2003
SHARES VALUE
------ -----
WIRELESS TELECOMMUNICATION SERVICES (CONTINUED)
419,500 Vodafone Group PLC........................... $ 836,777
14,500 Vodafone Group PLC, ADR...................... 293,625
------------
2,821,752
------------
UTILITIES - 1.90%
ELECTRIC UTILITIES - 1.38%
2,100 Allete, Inc.................................. 57,498
45,300 American Electric Power Co., Inc............. 1,359,000
5,000 Central Vermont Public Service Corp.......... 110,900
3,400 CH Energy Group, Inc......................... 149,600
38,000 Consolidated Edison, Inc..................... 1,548,880
5,700 El Paso Electric Co.*........................ 65,835
2,100 Entergy Corp................................. 113,715
2,700 Exelon Corp.................................. 171,450
1,100 Maine & Maritimes Corp....................... 39,600
2,000 MGE Energy, Inc.............................. 60,520
56,600 National Grid Transco PLC.................... 362,691
8,100 Northeast Utilities.......................... 145,152
2,200 Otter Tail Corp.............................. 57,508
34,700 PG&E Corp.*.................................. 829,330
1,700 PPL Corp..................................... 69,615
3,600 Progress Energy, Inc......................... 160,056
49,000 TXU Corp..................................... 1,154,440
------------
6,455,790
------------
GAS UTILITIES - 0.08%
2,200 Cascade Natural Gas Corp..................... 43,120
1,600 Northwest Natural Gas Co..................... 46,400
62,300 Snam Rete Gas SpA............................ 240,279
1,700 WGL Holdings, Inc............................ 46,886
------------
376,685
------------
MULTI-UTILITIES & UNREGULATED POWER - 0.44%
106,600 Duke Energy Corp............................. 1,898,546
4,300 Energy East Corp............................. 96,449
1,400 MDU Resources Group, Inc..................... 47,292
------------
2,042,287
------------
TOTAL COMMON STOCKS.......................... 298,672,481
------------
(Cost $272,202,727)
PAR VALUE
---------
CORPORATE NOTES AND BONDS - 14.85%
$ 35,000 Acetex Corp., Senior Notes
10.88% 08/01/09.............................. 38,763
150,000 Acetex Corp., Senior Notes
10.88% 08/01/09 (C).......................... 166,125
225,000 Advance PCS
8.50% 04/01/08............................... 245,250
150,000 Airgas Inc
9.13% 10/01/11............................... 166,500
PAR VALUE VALUE
--------- -----
CORPORATE NOTES AND BONDS (CONTINUED)
$ 500,000 Allied Waste North America, Inc., Series B
7.88% 01/01/09............................... $ 519,375
1,375,000 Amerada Hess Corp.
7.88% 10/01/29............................... 1,565,712
150,000 American Axle & Manufacturing, Inc.
Senior Subordinate Note
9.75% 03/01/09............................... 161,625
620,000 AmerisourceBergen Corp., Senior Note
8.13% 09/01/08............................... 666,500
1,800,000 AOL Time Warner, Inc.
7.63% 04/15/31............................... 2,035,890
100,000 Apogent Technologies, Inc.,
Senior Subordinate Notes
6.50% 05/15/13 (C)........................... 102,500
275,000 Arch Western Finance, Senior Notes
6.75% 07/01/13 (C)........................... 283,250
550,000 Ball Corp.
6.88% 12/15/12............................... 566,500
25,000 Brown (Tom), Inc.
7.25% 09/15/13............................... 25,875
250,000 Burlington Northern Railroad Co., Series H
9.25% 10/01/06............................... 295,845
200,000 Burlington Northern Santa Fe Corp.,
Debenture
6.88% 02/15/16............................... 229,406
280,000 Cascades, Inc., Senior Note
7.25% 02/15/13 (C)........................... 285,600
150,000 Chesapeake Energy Corp.
8.13% 04/01/11............................... 162,750
345,000 Chesapeake Energy Corp., Senior Note
7.50% 09/15/13 (C)........................... 363,113
450,000 Cinemark USA, Inc., Senior Subordinate Note
9.00% 02/01/13 (C)........................... 480,375
550,000 Constellation Brands, Inc., Series B
8.13% 01/15/12............................... 591,250
150,000 Corrections Corporation of America,
Senior Notes
7.50% 05/01/11............................... 154,500
575,000 Cott Beverages USA, Inc.
8.00% 12/15/11............................... 618,125
1,500,000 Cox Communications, Inc.
7.75% 11/01/10............................... 1,784,280
100,000 CSC Holdings, Debenture
8.13% 08/15/09............................... 102,750
195,000 CSC Holdings, Senior Subordinate Debenture
9.88% 02/15/13............................... 202,800
800,000 DaimlerChrysler NA Holding Corp.
7.40% 01/20/05............................... 853,232
750,000 Devon Financing Corp. ULC
6.88% 09/30/11............................... 860,693
250,000 Devon Financing Corp. ULC
7.88% 09/30/31............................... 305,033
500,000 Disney (Walt) Co.
7.30% 02/08/05............................... 536,010
1,000,000 Disney (Walt) Co., MTN
5.80% 10/27/08............................... 1,101,340
See Notes to Financial Statements.
34
Columbia Asset Allocation Fund
PORTFOLIO OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2003
PAR VALUE VALUE
--------- -----
CORPORATE NOTES AND BONDS (CONTINUED)
$ 400,000 Dex Media East LLC/Dex Media East Finance Co.
Senior Subordinate Note
12.13% 11/15/12 (C)............................ $ 481,000
375,000 DirecTV Holdings LLC, Senior Note
8.38% 03/15/13 (C)............................. 422,812
375,000 Echostar DBS Corp., Senior Notes
5.75% 10/01/08 (C)............................. 375,000
25,000 Equistar Chemicals LP/Equistar Funding Corp.
10.13% 09/01/08................................ 24,875
75,000 Equistar Chemicals LP/Equistar Funding Corp.
Senior Note
10.63% 05/01/11 (C)............................ 74,625
155,000 Ethyl Corp., Senior Note
8.88% 05/01/10 (C)............................. 159,650
460,000 Extended Stay America, Inc.
Senior Subordinate Note
9.15% 03/15/08................................. 480,125
1,850,000 FirstEnergy Corp., Series A
5.50% 11/15/06................................. 1,912,345
1,400,000 Florida Windstorm Underwriting Assoc.
Series 1999-A
7.13% 02/25/19 (C)............................. 1,617,084
1,450,000 Ford Motor Credit Co.
7.38% 02/01/11................................. 1,523,428
1,000,000 Gannett Co., Inc.
5.50% 04/01/07................................. 1,092,710
250,000 General Motors Corp., Senior Notes
7.13% 07/15/13................................. 263,110
500,000 Georgia-Pacific Corp.
8.88% 05/15/31................................. 500,000
1,500,000 Goldman Sachs Group, Inc.
6.60% 01/15/12................................. 1,700,895
605,000 Grant Prideco, Inc., Series B
9.63% 12/01/07................................. 662,475
1,000,000 GTE North, Inc., Debenture
5.65% 11/15/08................................. 1,096,340
350,000 Harrah's Operating Co., Inc.
7.88% 12/15/05................................. 378,875
400,000 Hasbro, Inc
8.50% 03/15/06................................. 437,000
1,450,000 HCA, Inc.
7.13% 06/01/06................................. 1,567,754
350,000 Health Care, REIT Inc.
7.50% 08/15/07................................. 390,295
280,000 Houghton Mifflin Co., Senior Notes
9.88% 02/01/13 (C)............................. 294,700
1,100,000 Household Finance Corp.
5.88% 02/01/09................................. 1,208,966
800,000 HSBC Capital Funding LP/Jersey Channel
Islands
9.55% 12/31/49 (C)............................. 1,024,932
630,000 Indiana Michigan Power, Series C
6.13% 12/15/06................................. 698,336
525,000 International Game Technology Senior Note
8.38% 05/15/09................................. 630,000
2,250,000 International Lease Finance Corp.
6.38% 03/15/09................................. 2,511,765
PAR VALUE VALUE
--------- -----
CORPORATE NOTES AND BONDS (CONTINUED)
$ 575,000 Iron Mountain Inc.
8.63% 04/01/13.............................. $ 610,938
125,000 iStar Financial, Inc., Senior Note
7.00% 03/15/08.............................. 133,750
175,000 iStar Financial, Inc., Senior Note
8.75% 08/15/08.............................. 195,562
340,000 K&F Industries, Inc., Series B
Senior Subordinate Note
9.63% 12/15/10.............................. 374,850
525,000 KB Home, Senior Subordinate Note
8.63% 12/15/08.............................. 567,000
550,000 Kennametal, Inc., Senior Note
7.20% 06/15/12.............................. 590,568
160,000 Key Energy Services, Inc., Senior Notes
6.38% 05/01/13.............................. 159,600
30,000 Key Energy Services, Inc., Series C
8.38% 03/01/08.............................. 32,250
525,000 L-3 Communications Corp.
7.63% 06/15/12.............................. 564,375
550,000 Lamar Media Corp., Senior Subordinate Note
7.25% 01/01/13 (C).......................... 574,750
525,000 Lear Corp, Series B
8.11% 05/15/09.............................. 601,125
350,000 Lin TV Corp., Senior Subordinate Note
6.50% 05/15/13 (C).......................... 340,375
130,000 MacDermid, Inc.
9.13% 07/15/11.............................. 144,300
500,000 MGM Grand, Inc.
9.75% 06/01/07.............................. 565,000
750,000 Nexen, Inc
7.88% 03/15/32.............................. 889,852
300,000 Nextel Communications, Inc., Senior Note
9.38% 11/15/09.............................. 325,500
1,000,000 Norfolk Southern Railway Co., Series I
5.95% 04/01/08.............................. 1,091,420
75,000 Offshore Logistic, Inc.
6.13% 06/15/13.............................. 71,625
575,000 Omnicare Inc., Series B
8.13% 03/15/11.............................. 622,438
630,000 Owens-Illinois, Inc., Senior Note
7.35% 05/15/08.............................. 612,675
550,000 Park Place Entertainment Corp.
Senior Subordinate Note
9.38% 02/15/07.............................. 606,375
225,000 Peabody Energy Corp., Series B
6.88% 03/15/13.............................. 234,562
550,000 Pemex Project Fund Master Trust
7.88% 02/01/09.............................. 622,875
550,000 Pride International, Inc., Senior Notes
10.00% 06/01/09............................. 591,250
1,100,000 Procter & Gamble Co.
4.75% 06/15/07.............................. 1,183,116
300,000 Province Healthcare Co.,
Senior Subordinate Notes
7.50% 06/01/13.............................. 297,750
2,000,000 Prudential Insurance Company of America
7.65% 07/01/07 (C).......................... 2,306,060
See Notes to Financial Statements.
35
Columbia Asset Allocation Fund
PORTFOLIO OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2003
PAR VALUE VALUE
--------- -----
CORPORATE NOTES AND BONDS (CONTINUED)
$ 440,000 Public Service Co., Senior Notes
4.40% 09/15/08.................................. $ 450,366
525,000 R.H. Donnelley Finance Corp.
Senior Subordinate Note
10.88% 12/15/12 (C)............................. 616,875
1,750,000 Raytheon Co.
8.30% 03/01/10.................................. 2,135,403
1,300,000 RBS Capital Trust
1 4.71% 07/01/13................................ 1,242,150
400,000 Scotts Co.
8.63% 01/15/09.................................. 424,200
350,000 Select Medical Corp. Senior Subordinate Note
9.50% 06/15/09.................................. 385,000
546,000 Silgan Corp., Senior Subordinate Debenture
9.00% 06/01/09.................................. 563,745
595,000 Sinclair Broadcast Group, Inc.
8.75% 12/15/11.................................. 647,063
1,000,000 Southwest Airlines Co., Debenture
8.75% 10/15/03.................................. 1,002,210
335,000 Speedway Motorsports, Inc.,
Senior Subordinate Note
6.75% 06/01/13 (C).............................. 341,700
625,000 Sprint Capital Corp.
6.13% 11/15/08.................................. 673,225
275,000 Starwood Hotels & Resorts Worldwide, Inc.
7.88% 05/01/12.................................. 299,750
700,000 Station Casinos, Inc., Senior Subordinate Note
8.88% 12/01/08.................................. 731,500
125,000 Stone Container Corp., Senior Note
8.38% 07/01/12.................................. 130,625
25,000 Synagro Technologies, Inc.,
Senior Subordinate Note
9.50% 04/01/09.................................. 27,375
375,000 TD Funding Corp.,
8.38% 07/15/11 (C).............................. 402,188
110,000 Teekay Shipping Coirp., Senior Note
8.88% 07/15/11.................................. 121,000
785,000 Tenet Healthcare Corp., Senior Note
5.38% 11/15/06.................................. 775,188
400,000 Toll Corp.
7.75% 09/15/07.................................. 412,000
600,000 TransAlta Corp., Yankee
6.75% 07/15/12.................................. 622,296
500,000 Triad Hospitals, Inc., Series B
8.75% 05/01/09.................................. 545,000
420,000 United Parcel Service, Debenture
8.38% 04/01/30 (B).............................. 574,816
250,000 United Rentals, Inc., Series B
9.50% 06/01/08.................................. 260,000
75,000 Universal Compression, Inc., Senior Note
7.25% 05/15/10.................................. 77,625
500,000 Verizon Wireless Capital LLC
5.38% 12/15/06.................................. 542,310
830,000 Wells Fargo Financial, Inc.
6.13% 02/15/06.................................. 908,518
40,000 Westinghouse Air Brake, Senior Note
6.88% 07/31/13 (C).............................. 40,500
PAR VALUE VALUE
--------- -----
CORPORATE NOTES AND BONDS (CONTINUED)
$ 575,000 Westport Resources Corp.
8.25% 11/01/11..................... $ 621,000
640,000 Weyerhaeuser Co.
6.75% 03/15/12..................... 712,051
400,000 WorldCom, Inc. - WorldCom Group
8.25% 05/15/31 (D)................. 132,000
470,000 XTO Energy, Inc., Senior Note
7.50% 04/15/12..................... 520,525
105,000 Yum! Brands, Inc., Senior Note
8.88% 04/15/11..................... 120,750
455,000 Yum! Brands, Inc., Senior Note
7.70% 07/01/12..................... 500,727
-------------
TOTAL CORPORATE NOTES AND BONDS.... 69,469,686
-------------
(Cost $66,292,944)
MORTGAGE-BACKED SECURITIES - 10.43%
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 6.30%
2,357,665 6.12%, 10/01/08, Pool #380999...... 2,563,724
136,181 6.00%, 01/01/09, Pool #269929...... 142,612
73,461 6.50%, 03/01/11, Pool #343824...... 77,785
41,537 6.00%, 06/01/14, Pool #484967...... 43,433
429,684 6.00%, 06/01/14, Pool #499193...... 449,299
128,642 6.00%, 06/01/14, Pool #500131...... 134,515
324,574 7.00%, 03/01/15, Pool #535200...... 345,380
258,876 7.50%, 06/01/15, Pool #540078...... 276,834
133,584 7.50%, 08/01/15, Pool #548844...... 142,850
101,014 7.50%, 09/01/15, Pool #552002...... 108,021
960,020 5.50%, 05/01/16, Pool #357124...... 993,995
57,589 7.00%, 07/01/16, Pool #253881...... 61,281
1,299,871 5.00%, 01/01/18, Pool #681774...... 1,331,306
7,898,418 5.00%, 06/01/18, Pool #709841...... 8,100,776
1,978,474 5.50%, 12/01/18, Pool #555291...... 2,048,251
40,276 6.50%, 01/01/26, Pool #303676...... 42,109
107,715 8.00%, 12/01/29, Pool #535031...... 116,602
129,514 8.00%, 04/01/30, Pool #526425...... 139,908
120,037 8.00%, 04/01/30, Pool #531218...... 129,671
41,910 8.00%, 04/01/30, Pool #534220...... 45,273
26,871 8.00%, 05/01/30, Pool #534205...... 29,028
211,159 7.50%, 02/01/31, Pool #595387...... 225,348
393,803 7.00%, 02/01/31, Pool #567157...... 416,796
803,828 7.00%, 07/01/31, Pool #596213...... 850,755
105,116 8.00%, 07/01/31, Pool #593098...... 113,299
1,420,977 6.50%, 08/01/31, Pool #595999...... 1,481,284
123,418 7.50%, 08/01/31, Pool #253929...... 131,709
1,225,072 6.50%, 10/01/31, Pool #254007...... 1,277,064
3,730,866 5.50%, 07/01/33, Pool #555591...... 3,806,640
3,837,033 5.00%, 08/01/33, Pool #713704...... 3,839,431
-------------
29,464,979
-------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 1.42%
52,815 6.00%, 04/15/13, Pool #471839...... 55,504
72,427 6.50%, 05/15/13, Pool #473566...... 76,893
58,034 6.50%, 06/15/13, Pool #476470...... 61,612
85,973 6.50%, 08/15/13, Pool #486453...... 91,274
29,255 6.50%, 11/15/13, Pool #454228...... 31,059
See Notes to Financial Statements.
36
Columbia Asset Allocation Fund
PORTFOLIO OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2003
PAR VALUE VALUE
--------- -----
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (CONTINUED)
$ 76,685 6.50%, 11/15/13, Pool #477529............ $ 81,413
115,459 6.50%, 11/15/13, Pool #483663............ 122,577
67,998 6.50%, 11/15/13, Pool #493623............ 72,190
898,753 7.00%, 11/15/13, Pool #780921............ 960,393
158,746 6.50%, 07/15/14, Pool #494014............ 168,552
106,332 9.00%, 12/15/17, Pool #780201............ 117,655
18,657 7.50%, 06/15/23, Pool #346618............ 20,111
100,146 8.00%, 07/15/25, Pool #409912............ 108,757
105,520 7.50%, 01/15/26, Pool #417191............ 113,397
928,003 6.00%, 01/15/29, Pool #473188............ 966,619
51,098 6.50%, 01/15/29, Pool #482909............ 53,709
303,444 6.50%, 03/15/29, Pool #464613............ 318,947
206,165 6.50%, 04/15/29, Pool #483349............ 216,698
411,295 6.50%, 04/15/29, Pool #473682............ 432,309
535,749 6.50%, 04/15/29, Pool #488234............ 563,120
602,410 6.50%, 05/15/29, Pool #487199............ 633,188
144,877 7.00%, 05/15/29, Pool #507929............ 154,187
157,282 7.50%, 09/15/29, Pool #466164............ 168,403
97,355 7.50%, 09/15/29, Pool #478707............ 104,239
16,282 7.50%, 09/15/29, Pool #510409............ 17,433
135,401 7.50%, 09/15/29, Pool #511482............ 144,975
194,844 7.00%, 09/15/29, Pool #510394............ 207,364
74,063 7.50%, 09/15/29, Pool #510424............ 79,300
29,939 8.50%, 12/15/30, Pool #781222............ 32,444
287,294 7.00%, 06/15/31, Pool #426776............ 305,552
164,689 6.50%, 07/15/31, Pool #555841............ 173,072
--------------
6,652,946
--------------
FEDERAL HOME LOAN MORTGAGE CORPORATION - 1.04%
239,145 6.50%, 02/01/11, Pool #G10473, Gold...... 252,320
135,387 6.50%, 04/01/11, Pool #E00426, Gold...... 142,818
211,801 6.50%, 04/01/11, Pool #E63949, Gold...... 223,427
162,242 6.50%, 05/01/11, Pool #E64054, Gold...... 171,148
121,098 6.50%, 10/01/11, Pool #E20269, Gold...... 127,745
65,936 7.50%, 07/01/15, Pool #E80965, Gold...... 70,184
2,716 7.50%, 08/01/15, Pool #E81252, Gold...... 2,891
144,760 8.00%, 09/01/15, Pool #E00881, Gold...... 156,502
69,188 6.50%, 07/01/16, Pool #E00996, Gold...... 72,794
126,577 6.50%, 04/01/26, Pool #G00467, Gold...... 132,474
135,058 6.50%, 06/01/26, Pool #C80406, Gold...... 141,350
145,229 6.50%, 02/01/27, Pool #D77810, Gold...... 151,898
199,019 6.50%, 02/01/27, Pool #D78116, Gold...... 208,159
97,595 6.50%, 02/01/27, Pool #D78152, Gold...... 102,077
85,220 6.50%, 03/01/27, Pool #D78905, Gold...... 89,133
452,093 6.50%, 03/01/27, Pool #D79051, Gold...... 473,155
263,230 7.00%, 07/01/28, Pool #C00632, Gold...... 278,294
337,397 6.50%, 09/01/28, Pool #C00647, Gold...... 352,693
132,541 7.00%, 04/01/29, Pool #C00756, Gold...... 140,126
204,203 7.50%, 01/01/30, Pool #C35185, Gold...... 218,425
171,147 7.00%, 01/01/30, Pool #C35372, Gold...... 180,832
287,297 6.50%, 06/01/31, Pool #C01184, Gold...... 299,971
57,182 7.00%, 06/01/31, Pool #C01188, Gold...... 60,383
73,780 6.50%, 07/01/31, Pool #C55192, Gold...... 77,057
704,397 7.00%, 08/01/31, Pool #C01211, Gold...... 743,826
--------------
4,869,682
--------------
PAR VALUE VALUE
--------- -----
OTHER MORTGAGE-BACKED SECURITIES - 1.67%
$ 71,178 American Mortgage Trust
8.30% 09/27/22.................................... $ 64,060
1,200,000 Federal National Mortgage Association
Series 2003-21, Class PH
4.50% 04/25/13.................................... 1,236,359
1,200,000 Federal National Mortgage Association
Series 2003-24, Class LC
5.00% 12/25/15.................................... 1,225,305
2,000,000 GS Mortgage Securities Corp. II
Series 1998-C1, Class A-2
6.62% 10/18/30.................................... 2,204,472
187,955 Rural Housing Trust,
Series 1987-1, Class D, CMO
6.33% 04/01/26.................................... 189,532
3,000,000 Wachovia Bank Commerical Mortgage Trust
Series 2003-C5, Class A-2
3.99% 06/15/35.................................... 2,865,540
-----------
7,785,268
-----------
TOTAL MORTGAGE-BACKED SECURITIES.................. 48,772,875
-----------
(Cost $46,934,117)
ASSET-BACKED SECURITIES - 4.40%
2,000,000 California Infrastructure
Series 1997-1, Class A-7
6.42% 12/26/09.................................... 2,250,940
1,900,000 Citicorp Lease Pass Thru Certificate
Series 1999-1, Class A-2
8.04% 12/15/19 (C)................................ 2,256,668
1,200,000 Chase Manhattan Auto Owner Trust
Series 2001-B, Class A-4
3.80% 05/15/08.................................... 1,235,412
1,550,000 Chemical Master Credit Card Trust I
Series 1996-2, Class A
5.98% 09/15/08.................................... 1,645,604
1,125,000 Citibank Credit Card Issuance Trust
Series 2002-A, Class A-1
4.95% 02/09/09.................................... 1,203,367
835,428 Continental Airlines, Inc. Pass Thru Certificate
7.46% 04/01/15.................................... 743,531
699,681 Federal Express Corp. Pass Thru Certificate
Series 1994-A1, Class A-310
7.53% 09/23/06.................................... 779,116
1,000,000 Honda Auto Receivables Owner Trust
Series 2002-3, Class A-3
3.00% 05/18/06.................................... 1,016,550
1,600,000 J.P. Morgan Commercial Mortgage Finance
Corp. Series 1999-C7, Class A-2
6.51% 10/15/35.................................... 1,809,949
1,000,000 LB-UBS Commercial Mortgage Trust
Series 2000-C5, Class A-2
6.51% 12/15/26.................................... 1,136,894
1,200,000 MBNA Master Credit Card Trust
Series 1999-M, Class A
6.60% 04/16/07.................................... 1,266,660
2,595,000 Standard Credit Card Master Trust
Series 1995-9, Class A
6.55% 10/07/07.................................... 2,826,059
See Notes to Financial Statements.
37
Columbia Asset Allocation Fund
PORTFOLIO OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2003
PAR VALUE VALUE
--------- -----
ASSET-BACKED SECURITIES (CONTINUED)
$1,014,042 United Airlines Pass Thru Certificate
Series 1991, Class A-1
9.20% 03/22/08 (D)..................... $ 314,353
588,020 United Airlines Pass Thru Certificate
Series 2000-2, Class A-1
7.03% 10/01/10 (E)..................... 476,297
1,600,000 Wells Fargo Auto Trust
Series 2001-A, Class A-4
5.07% 03/15/08......................... 1,631,584
-----------
TOTAL ASSET-BACKED SECURITIES.......... 20,592,984
-----------
(Cost $20,598,431)
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 3.05%
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 1.08%
4,325,000 6.63%, 09/15/09........................ 5,037,098
-----------
U.S. TREASURY BONDS - 1.75%
950,000 7.50%, 11/15/16........................ 1,240,121
420,000 8.88%, 08/15/17........................ 609,984
1,150,000 8.13%, 08/15/19........................ 1,593,829
850,000 7.88%, 02/15/21........................ 1,161,478
1,200,000 6.25%, 08/15/23........................ 1,402,828
425,000 6.13%, 08/15/29........................ 494,777
1,560,000 5.38%, 02/15/31........................ 1,674,075
-----------
8,177,092
-----------
U.S. TREASURY NOTES - 0.22%
1,025,000 4.00% 11/15/12......................... 1,037,172
-----------
TOTAL U.S. GOVERNMENT
AND AGENCY OBLIGATIONS................. 14,251,362
-----------
(Cost $13,194,051)
FOREIGN BONDS (A) - 0.30%
275,000 British Sky Broadcasting PLC
8.20% 07/15/09......................... 325,936
350,000 France Telecom
9.75% 03/01/31 (B)..................... 471,611
575,000 Rogers Cable, Inc.
7.88% 05/01/12......................... 628,561
-----------
TOTAL FOREIGN BONDS.................... 1,426,108
-----------
(Cost $1,217,252)
MUNICIPAL SECURITY - 0.13%
500,000 New Jersey State, EDA State Pension
Funding Revenue Series A, AMT
7.43% 02/15/29
Insured: MBIA.......................... 615,675
-----------
(Cost $544,476)
SHARES
------
PREFERRED STOCK - 0.11%
CONSUMER DISCRETIONARY - 0.11%
MEDIA - 0.11%
19,410 News Corp., Ltd., ADR.................. 529,699
-----------
(Cost $430,281)
SHARES VALUE
------ -----
RIGHTS - 0.00%
HEALTH CARE - 0.00%
PHARMACEUTICAL - 0.00%
1,300 Stada Arzneimittel AG,* expires 10/13/03.. $ 2,908
-----------
(Cost $0)
PAR VALUE
---------
REPURCHASE AGREEMENT - 2.62%
$12,258,000 Repurchase agreement with State Street
Bank & Trust Co., dated 09/30/03,
due 10/01/03 at 0.900%, collateralized
by U.S. Treasury Bonds/Notes with
maturities to 08/15/29,
market value $12,535,200
(repurchase proceeds $12,258,306)......... 12,258,000
-----------
(Cost $12,258,000)
TOTAL INVESTMENTS - 99.73%.............. 466,591,778
------------
(Cost $433,672,279) (F)
NET OTHER ASSETS AND LIABILITIES - 0.27% 1,244,041
------------
NET ASSETS - 100.00%.................... $467,835,819
============
- ---------------------------
* Non-income producing security.
(A) U.S. Dollar Denominated
(B) Interest rate steps up periodically to maturity. The interest rate shown
reflects rate in effect on September 30, 2003.
(C) These securities are exempt from registration under Rule 144A of the
Securities Act of 1933 and may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At September 30,
2003, the value of these securities amounted to $13,009,882, which
represents 2.78% of net assets.
(D) As of September 30, 2003, the Fund held securities of certain issuers that
have filed for bankruptcy under Chapter 11, representing 0.10% of net
assets. These issuers are in default of certain debt covenants. Income is
not being accrued.
(E) As of September 30, 2003, the Fund held securities of certain issuers that
have filed for bankruptcy under Chapter 11, representing 0.10% of net
assets. These issuers are in default of certain debt covenants. Income is
being fully accrued.
(F) Cost for federal income tax purposes is $439,253,970.
ACRONYM NAME
------- ----
ADR American Depositary Receipt
AMT Alternative Minimum Tax. Private activity
obligations the interest on which is subject to
federal AMT for individuals.
CMO Collateralized Mortgage Obligation
EDA Economic Development Authority
GDR Global Depositary Receipt
MBIA Municipal Bond Insurance Association
MSCI EAFE Morgan Stanley Capital International Europe,
Australasia, Far East
MTN Medium Term Note
NVDR Non-Voting Depositary Receipt
REIT Real Estate Investment Trust
SPDR Standard & Poor's Depositary Receipt
See Notes to Financial Statements.
38
[GRAPHIC]
Columbia Large Cap Growth Fund
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 2003
SHARES VALUE
------ -----
COMMON STOCKS - 98.59%
CONSUMER DISCRETIONARY - 19.72%
HOTELS, RESTAURANTS & LEISURE - 0.79%
234,800 Wendy's International, Inc..................... $ 7,584,040
-----------
HOUSEHOLD DURABLES - 0.51%
62,000 Garmin Ltd..................................... 2,596,560
194,500 Matsushita Electric Industrial Co., Ltd., ADR.. 2,326,220
-----------
4,922,780
-----------
INTERNET & CATALOG RETAIL - 2.50%
265,900 eBay, Inc.*.................................... 14,228,309
298,700 InterActiveCorp*............................... 9,872,035
-----------
24,100,344
-----------
MEDIA - 2.87%
232,300 Clear Channel Communications, Inc.............. 8,897,090
800,000 Liberty Media Corp., Class A*.................. 7,976,000
200,000 Viacom, Inc., Class A.......................... 7,660,000
200,000 XM Satellite Radio Holdings, Inc., Class A*.... 3,106,000
-----------
27,639,090
-----------
MULTI-LINE RETAIL - 5.71%
233,300 Costco Wholesale Corp.*........................ 7,250,964
178,600 Kohl's Corp.*.................................. 9,555,100
499,000 Target Corp.................................... 18,777,370
350,000 Wal-Mart Stores, Inc........................... 19,547,500
-----------
55,130,934
-----------
SPECIALTY RETAIL - 6.83%
181,400 AutoZone, Inc.*................................ 16,240,742
200,000 Bed Bath & Beyond, Inc.*....................... 7,636,000
268,400 Best Buy Co., Inc.*............................ 12,754,368
306,000 Chico's FAS, Inc.*............................. 9,375,840
384,300 Lowe's Companies, Inc.......................... 19,945,170
-----------
65,952,120
-----------
TEXTILES, APPAREL & LUXURY GOODS - 0.51%
89,500 Coach, Inc.*................................... 4,886,700
-----------
CONSUMER STAPLES - 8.47%
BEVERAGES - 2.93%
125,000 Anheuser-Busch Companies, Inc.................. 6,167,500
482,700 PepsiCo, Inc................................... 22,122,141
-----------
28,289,641
-----------
SHARES VALUE
------ -----
FOOD & DRUG RETAILING - 1.37%
235,000 Sysco Corp................................ $ 7,686,850
100,000 Whole Foods Market, Inc.*................. 5,518,000
-----------
13,204,850
-----------
FOOD PRODUCTS - 0.93%
290,900 Dean Foods Co.*........................... 9,026,627
-----------
HOUSEHOLD PRODUCTS - 1.90%
197,300 Procter & Gamble Co....................... 18,313,386
-----------
PERSONAL PRODUCTS - 0.61%
100,000 Alberto-Culver Co., Inc., Class B......... 5,882,000
-----------
TOBACCO - 0.73%
161,300 Altria Group, Inc......................... 7,064,940
-----------
ENERGY - 2.97%
ENERGY EQUIPMENT & SERVICES - 2.97%
207,700 Baker Hughes, Inc......................... 6,145,843
175,000 Noble Corp.*.............................. 5,948,250
156,100 Schlumberger Ltd.......................... 7,555,240
195,000 Smith International, Inc.*................ 7,016,100
100,000 Transocean, Inc.*......................... 2,000,000
-----------
28,665,433
-----------
FINANCIALS - 6.85%
DIVERSIFIED FINANCIALS - 5.65%
700,000 Citigroup, Inc............................ 31,857,000
174,100 Fannie Mae................................ 12,221,820
125,000 Goldman Sachs Group, Inc.................. 10,487,500
-----------
54,566,320
-----------
INSURANCE - 1.20%
200,000 American International Group, Inc......... 11,540,000
-----------
HEALTH CARE - 23.02%
BIOTECHNOLOGY - 3.50%
407,900 Amgen, Inc.*.............................. 26,338,103
132,600 Gilead Sciences, Inc.*.................... 7,416,318
-----------
33,754,421
-----------
HEALTH CARE EQUIPMENT & SUPPLIES - 5.08%
176,200 Alcon, Inc................................ 9,893,630
160,900 Boston Scientific Corp.*.................. 10,265,420
377,600 Medtronic, Inc............................ 17,716,992
206,200 St. Jude Medical, Inc.*................... 11,087,374
-----------
48,963,416
-----------
See Notes to Financial Statements.
39
Columbia Large Cap Growth Fund
PORTFOLIO OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2003
SHARES VALUE
------ -----
HEALTH CARE PROVIDERS & SERVICES - 3.80%
93,000 Anthem, Inc.*............................... $ 6,633,690
662,300 Caremark Rx, Inc.*.......................... 14,967,980
111,500 McKesson Corp............................... 3,711,835
226,100 UnitedHealth Group, Inc..................... 11,377,352
------------
36,690,857
------------
PHARMACEUTICALS - 10.64%
225,000 Abbott Laboratories......................... 9,573,750
285,800 Biovail Corp.*.............................. 10,617,470
1,581,900 Pfizer, Inc................................. 48,058,122
300,000 Teva Pharmaceutical Industries Ltd., ADR.... 17,145,000
182,000 Watson Pharmaceuticals, Inc.*............... 7,587,580
210,000 Wyeth....................................... 9,681,000
------------
102,662,922
------------
INDUSTRIALS - 7.55%
AIR FREIGHT & LOGISTICS - 0.75%
112,200 FedEx Corp.................................. 7,229,046
------------
COMMERCIAL SERVICES & SUPPLIES - 1.79%
516,000 Concord EFS, Inc.*.......................... 7,053,720
254,300 First Data Corp............................. 10,161,828
------------
17,215,548
------------
INDUSTRIAL CONGLOMERATES - 5.01%
1,275,000 General Electric Co......................... 38,007,750
507,400 Tyco International Ltd...................... 10,366,182
------------
48,373,932
------------
INFORMATION TECHNOLOGY - 28.35%
COMMUNICATIONS EQUIPMENT - 4.77%
166,000 Alcatel SA, ADR............................. 1,963,780
1,776,200 Cisco Systems, Inc.*........................ 34,706,948
81,200 Motorola, Inc............................... 971,964
146,700 QUALCOMM, Inc............................... 6,108,588
70,300 UTStarcom, Inc.*............................ 2,236,243
------------
45,987,523
------------
COMPUTERS & PERIPHERALS - 3.23%
762,900 Dell, Inc.*................................. 25,473,231
27,700 International Business Machines Corp........ 2,446,741
52,300 Lexmark International, Inc.*................ 3,295,423
------------
31,215,395
------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.31%
148,000 Agilent Technologies, Inc.*................. 3,272,280
150,000 Celestica, Inc.*............................ 2,379,000
495,600 Flextronics International Ltd.*............. 7,027,608
------------
12,678,888
------------
SHARES VALUE
------ -----
INTERNET SOFTWARE & SERVICES - 0.63%
170,300 Yahoo!, Inc.*................................ $ 6,025,214
------------
IT CONSULTING & SERVICES - 1.01%
434,500 Accenture Ltd., Class A*..................... 9,706,730
------------
OFFICE ELECTRONICS - 0.21%
194,200 Xerox Corp.*................................. 1,992,492
------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS - 9.95%
331,000 Advanced Micro Devices, Inc.*................ 3,677,410
150,000 Analog Devices, Inc.*........................ 5,703,000
384,500 ASML Holding NV, Registered Shares*.......... 5,048,485
70,100 Infineon Technologies AG, ADR................ 903,589
1,657,500 Intel Corp................................... 45,597,825
126,800 Intersil Corp., Class A...................... 3,017,840
81,000 Linear Technology Corp....................... 2,900,610
190,400 Marvell Technology Group Ltd.*............... 7,187,600
180,000 Maxim Integrated Products, Inc............... 7,110,000
73,600 PMC-Sierra, Inc.*............................ 970,857
28,100 Samsung Electronics Co., Ltd., GDR........... 4,748,900
501,100 Taiwan Semiconductor Manufacturing Co.,
Ltd., ADR*................................ 5,426,913
418,000 United Microelectronics Corp., ADR*.......... 1,885,180
65,000 Xilinx, Inc.*................................ 1,853,150
------------
96,031,359
------------
SOFTWARE - 7.24%
155,000 Amdocs Ltd.*................................. 2,914,000
78,300 Electronic Arts, Inc.*....................... 7,221,609
1,750,000 Microsoft Corp............................... 48,632,500
500,000 Oracle Corp.*................................ 5,610,000
175,000 VERITAS Software Corp.*...................... 5,495,000
------------
69,873,109
------------
TELECOMMUNICATION SERVICES - 1.66%
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.57%
744,300 Level 3 Communications, Inc.*................ 4,034,106
45,000 Verizon Communications, Inc.................. 1,459,800
------------
5,493,906
------------
WIRELESS TELECOMMUNICATION SERVICES - 1.09%
725,100 American Tower Corp., Class A*............... 7,359,765
381,400 AT&T Wireless Services, Inc.*................ 3,119,852
------------
10,479,617
------------
TOTAL COMMON STOCKS.......................... 951,143,580
------------
(Cost $852,476,498)
See Notes to Financial Statements.
40
Columbia Large Cap Growth Fund
PORTFOLIO OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2003
SHARES VALUE
------ -----
PREFERRED STOCK - 0.49%
CONSUMER DISCRETIONARY - 0.49%
MEDIA - 0.49%
175,000 News Corp., Ltd., ADR........................... $ 4,775,750
-----------
(Cost $4,589,060)
PAR VALUE
---------
REPURCHASE AGREEMENT - 1.65%
$15,888,000 Repurchase agreement with State Street Bank
& Trust Co., dated 09/30/03, due 10/01/03 at
0.900%, collateralized by a U.S. Treasury Bond
maturing 05/15/17, market value $16,206,900
(repurchase proceeds $15,888,397)............... 15,888,000
-----------
(Cost $15,888,000)
TOTAL INVESTMENTS - 100.73%............... 971,807,330
------------
(Cost $872,953,558) (A)
NET OTHER ASSETS AND LIABILITIES - (0.73)% (7,035,806)
------------
NET ASSETS - 100.0%....................... $964,771,524
============
- ---------------------------
* Non-income producing security.
(A) Cost for federal income tax purposes is $887,071,683.
ACRONYM NAME
- ------- ----
ADR American Depositary Receipt
GDR Global Depositary Receipt
See Notes to Financial Statements.
41
[GRAPHIC]
Columbia Disciplined Value Fund
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 2003
SHARES VALUE
------ -----
COMMON STOCKS - 99.15%
CONSUMER DISCRETIONARY - 10.35%
AUTOMOBILES - 1.21%
407,400 Ford Motor Co............................. $ 4,387,698
-----------
HOTELS, RESTAURANTS & LEISURE - 0.96%
124,700 Royal Caribbean Cruises Ltd............... 3,505,317
-----------
LEISURE EQUIPMENT & PRODUCTS - 2.16%
139,000 Brunswick Corp............................ 3,569,520
226,500 Mattel, Inc............................... 4,294,440
-----------
7,863,960
-----------
MEDIA - 3.79%
197,600 AOL Time Warner, Inc.*.................... 2,985,736
144,900 Comcast Corp., Class A*................... 4,474,512
28,600 Gannett Co., Inc.......................... 2,218,216
43,200 Meredith Corp............................. 1,994,544
114,800 Regal Entertainment Group, Class A........ 2,135,280
-----------
13,808,288
-----------
SPECIALTY RETAIL - 1.25%
128,000 Foot Locker, Inc.......................... 2,073,600
207,300 Toys 'R' US, Inc.*........................ 2,493,819
-----------
4,567,419
-----------
TEXTILES, APPAREL & LUXURY GOODS - 0.98%
119,700 Jones Apparel Group, Inc.................. 3,582,621
-----------
CONSUMER STAPLES - 5.91%
BEVERAGES - 1.10%
93,400 Coca-Cola Co.............................. 4,012,464
-----------
FOOD & DRUG RETAILING - 1.73%
354,000 Kroger Co.*............................... 6,325,980
-----------
HOUSEHOLD PRODUCTS - 1.47%
32,600 Colgate-Palmolive Co...................... 1,822,014
38,200 Procter & Gamble Co....................... 3,545,724
-----------
5,367,738
-----------
PERSONAL PRODUCTS - 0.57%
64,400 Gillette Co............................... 2,059,512
-----------
TOBACCO - 1.04%
86,400 Altria Group, Inc......................... 3,784,320
-----------
SHARES VALUE
------ -----
ENERGY - 9.22%
ENERGY EQUIPMENT & SERVICES - 0.66%
84,800 Tidewater, Inc......................... $ 2,399,840
-----------
OIL & GAS - 8.56%
82,800 Anadarko Petroleum Corp................ 3,457,728
86,300 Burlington Resources, Inc.............. 4,159,660
490,600 Exxon Mobil Corp....................... 17,955,960
147,500 Valero Energy Corp..................... 5,644,825
-----------
31,218,173
-----------
FINANCIALS - 33.80%
BANKS - 20.69%
159,400 Bank of America Corp................... 12,439,576
133,100 Bank of New York Co., Inc.............. 3,874,541
49,200 Bank One Corp.......................... 1,901,580
324,700 Charter One Financial, Inc............. 9,935,820
42,500 City National Corp..................... 2,165,800
183,500 Comerica, Inc.......................... 8,551,100
108,450 GreenPoint Financial Corp.............. 3,238,317
103,400 National City Corp..................... 3,046,164
134,900 PNC Financial Services Group, Inc...... 6,418,542
311,200 U.S. Bancorp........................... 7,465,688
125,700 Wachovia Corp.......................... 5,177,583
179,900 Washington Mutual, Inc................. 7,082,663
80,100 Wells Fargo & Co....................... 4,125,150
-----------
75,422,524
-----------
DIVERSIFIED FINANCIALS - 7.67%
309,900 Citigroup, Inc......................... 14,103,549
36,500 Freddie Mac............................ 1,910,775
99,900 LaBranche & Co, Inc.................... 1,458,540
255,600 MBNA Corp.............................. 5,827,680
87,100 Merrill Lynch & Co., Inc............... 4,662,463
-----------
27,963,007
-----------
INSURANCE - 4.93%
51,200 Allstate Corp.......................... 1,870,336
76,000 Ambac Financial Group, Inc............. 4,864,000
166,000 John Hancock Financial Services, Inc... 5,610,800
102,200 MBIA, Inc.............................. 5,617,934
-----------
17,963,070
-----------
REAL ESTATE INVESTMENT TRUST - 0.51%
112,600 Annaly Mortgage Management, Inc........ 1,848,892
-----------
HEALTH CARE - 5.77%
HEALTH CARE EQUIPMENT & SUPPLIES - 1.56%
124,400 Beckman Coulter, Inc................... 5,665,176
-----------
See Notes to Financial Statements.
42
Columbia Disciplined Value Fund
PORTFOLIO OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2003
SHARES VALUE
------ -----
HEALTH CARE PROVIDERS & SERVICES - 1.09%
188,700 IMS Health, Inc............................... $ 3,981,570
-----------
PHARMACEUTICALS - 3.12%
99,800 Bristol-Myers Squibb Co....................... 2,560,868
129,900 Merck & Co., Inc.............................. 6,575,538
54,100 Watson Pharmaceuticals, Inc.*................. 2,255,429
-----------
11,391,835
-----------
INDUSTRIALS - 8.90%
AEROSPACE & DEFENSE - 4.47%
25,900 General Dynamics Corp......................... 2,021,754
38,900 Lockheed Martin Corp.......................... 1,795,235
149,200 Precision Castparts Corp...................... 5,236,920
93,400 United Technologies Corp...................... 7,217,952
-----------
16,271,861
-----------
AIR FREIGHT & LOGISTICS - 1.35%
76,400 FedEx Corp.................................... 4,922,452
-----------
COMMERCIAL SERVICES & SUPPLIES - 2.47%
386,600 Cendant Corp.*................................ 7,225,554
46,600 Pitney Bowes, Inc............................. 1,785,712
-----------
9,011,266
-----------
INDUSTRIAL CONGLOMERATES - 0.61%
32,000 3M Co......................................... 2,210,240
-----------
INFORMATION TECHNOLOGY - 6.54%
COMMUNICATIONS EQUIPMENT - 0.82%
274,400 Avaya, Inc.*.................................. 2,990,960
-----------
COMPUTERS & PERIPHERALS - 2.47%
162,300 Hewlett-Packard Co............................ 3,142,128
66,500 International Business Machines Corp.......... 5,873,945
-----------
9,016,073
-----------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.20%
153,300 Celestica, Inc.*.............................. 2,431,338
136,000 Flextronics International Ltd.*............... 1,928,480
-----------
4,359,818
-----------
SEMICONDUCTOR EQUIPMENT & PRODUCTS - 0.58%
126,400 Fairchild Semiconductor International, Inc.*.. 2,095,712
-----------
SOFTWARE & SERVICES - 1.47%
156,900 Convergys Corp.*.............................. 2,877,546
62,100 First Data Corp............................... 2,481,516
-----------
5,359,062
-----------
SHARES VALUE
------ -----
MATERIALS - 5.74%
CHEMICALS - 3.63%
356,500 Monsanto Co..................................... $ 8,534,610
90,500 Sigma-Aldrich Corp.............................. 4,700,570
------------
13,235,180
------------
CONTAINERS & PACKAGING - 1.49%
363,100 Smurfit-Stone Container Corp.*.................. 5,439,238
------------
PAPER & FOREST PRODUCTS - 0.62%
55,600 Rayonier, Inc................................... 2,257,360
------------
TELECOMMUNICATION SERVICES - 6.86%
DIVERSIFIED TELECOMMUNICATION SERVICES - 6.86%
92,100 BellSouth Corp.................................. 2,180,928
633,100 SBC Communications, Inc......................... 14,086,475
269,500 Verizon Communications, Inc..................... 8,742,580
------------
25,009,983
------------
UTILITIES - 6.06%
ELECTRIC UTILITIES - 4.66%
41,400 Hawaiian Electric Industries.................... 1,802,142
187,300 Southern Co..................................... 5,491,636
156,100 TECO Energy, Inc................................ 2,157,302
320,100 TXU Corp........................................ 7,541,556
------------
16,992,636
------------
GAS UTILITIES - 0.88%
77,100 Peoples Energy Corp............................. 3,190,398
------------
MULTI-UTILITIES & UNREGULATED POWER - 0.52%
56,100 MDU Resources Group, Inc........................ 1,895,058
------------
TOTAL COMMON STOCKS............................. 361,376,701
------------
(Cost $338,254,021)
PAR VALUE
---------
REPURCHASE AGREEMENT - 1.00%
$3,643,000 Repurchase agreement with State Street Bank
& Trust Co., dated 09/30/03, due 10/01/03 at
0.900%, collateralized by a U.S. Treasury Bond
maturing 11/15/21, market value $3,717,750
(repurchase proceeds $3,643,091)................ 3,643,000
------------
(Cost $3,643,000)
TOTAL INVESTMENTS - 100.15%............... 365,019,701
------------
(Cost $341,897,021) (A)
NET OTHER ASSETS AND LIABILITIES - (0.15%) (550,898)
------------
NET ASSETS - 100.0%....................... $364,468,803
============
- ---------------------------
* Non-income producing security.
(A) Cost for federal income tax purposes is $343,638,728.
See Notes to Financial Statements.
43
[GRAPHIC]
Columbia International Equity Fund
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 2003
SHARES VALUE
------ -----
COMMON STOCKS - 98.88%
CONSUMER DISCRETIONARY - 18.59%
AUTO COMPONENTS - 0.29%
35,100 FCC Co., Ltd................................ $ 1,130,988
-----------
AUTOMOBILES - 1.60%
56,900 Honda Motor Co., Ltd........................ 2,282,843
372,000 Nissan Motor Co., Ltd....................... 4,023,336
-----------
6,306,179
-----------
HOTELS, RESTAURANTS & LEISURE - 1.48%
103,140 Accor SA.................................... 3,800,050
352,800 Compass Group PLC........................... 2,034,954
-----------
5,835,004
-----------
HOUSEHOLD DURABLES - 6.25%
254,021 Koninklijke (Royal) Philips Electronics NV.. 5,759,872
19,145,000 Land and Houses Public Co., Ltd., NVDR...... 5,787,022
659,000 Matsushita Electric Industrial Co., Ltd..... 7,955,437
81,000 Pioneer Corp................................ 2,010,187
755,000 Sanyo Electric Co., Ltd..................... 3,164,610
-----------
24,677,128
-----------
MEDIA - 3.98%
421,100 BEC World Public Co., Ltd................... 2,482,628
164,500 JC Decaux SA*............................... 2,313,521
641,300 Pearson PLC................................. 6,078,873
164,713 VNU NV...................................... 4,830,715
-----------
15,705,737
-----------
MULTI-LINE RETAIL - 1.26%
499,000 Seiyu Ltd.*................................. 1,634,744
1,148,300 Wal-Mart de Mexico SA de CV, Series V....... 3,326,362
-----------
4,961,106
-----------
SPECIALTY RETAIL - 2.81%
674,295 Kingfisher PLC.............................. 2,925,411
226,500 Next PLC.................................... 4,231,857
33,600 Shimamura Co., Ltd.......................... 2,367,365
25,610 USS Co., Ltd................................ 1,586,043
-----------
11,110,676
-----------
TEXTILES, APPAREL & LUXURY GOODS - 0.92%
41,400 LVMH Moet Hennessy Louis Vuitton SA......... 2,573,565
165,000 Sanyo Shokai Ltd............................ 1,069,246
-----------
3,642,811
-----------
CONSUMER STAPLES - 5.50%
BEVERAGES - 0.65%
27,125 Pernod-Ricard SA............................ 2,569,571
-----------
SHARES VALUE
------ -----
FOOD & DRUG RETAILING - 0.47%
58,000 Seven-Eleven Japan Co., Ltd.................. $ 1,858,457
-----------
FOOD PRODUCTS - 1.63%
17,350 Nestle SA, Registered Shares................. 4,002,936
1,360,100 Thai Union Frozen Products Public Co., Ltd... 985,334
95,000 Yakult Honsha Co., Ltd....................... 1,447,830
-----------
6,436,100
-----------
HOUSEHOLD PRODUCTS - 1.06%
207,800 Reckitt Benckiser PLC........................ 4,179,530
-----------
PERSONAL PRODUCTS - 0.56%
32,300 L'Oreal SA................................... 2,207,349
-----------
TOBACCO - 1.13%
272,533 Imperial Tobacco Group PLC................... 4,444,108
-----------
ENERGY - 4.59%
OIL & GAS - 4.59%
1,185,700 BP PLC....................................... 8,139,943
52,800 EnCana Corp.................................. 1,911,825
392,081 ENI SpA...................................... 5,993,907
13,592 Total SA..................................... 2,052,526
-----------
18,098,201
-----------
FINANCIALS - 22.62%
BANKS - 13.24%
46,900 Banco Popular Espanol SA..................... 2,320,895
668,200 Banco Santander Central Hispano SA........... 5,668,109
567,300 Barclays PLC................................. 4,354,278
332,947 Credit Agricole SA........................... 6,490,399
281,950 Credit Suisse Group.......................... 9,025,904
2,346,000 Grupo Financiero BBVA Bancomer SA de CV,
Class B*..................................... 2,050,483
86,849 Hansabank Ltd................................ 1,993,570
111,145 Royal Bank of Scotland Group PLC............. 2,826,688
3,656,200 Siam Commercial Bank Public Co., Ltd.*....... 3,516,455
437,598 Standard Chartered Ltd., PLC................. 6,113,776
676 UFJ Holdings, Inc............................ 2,663,591
104,700 Uniao de Bancos Brasileiros SA, ADR.......... 2,073,060
668,200 UniCredito Italiano SpA...................... 3,161,061
-----------
52,258,269
-----------
DIVERSIFIED FINANCIALS - 2.83%
78,200 Euronext NV.................................. 1,905,290
340,700 ING Groep NV................................. 6,244,551
186,000 Nomura Holdings, Inc......................... 3,004,981
-----------
11,154,822
-----------
See Notes to Financial Statements.
44
Columbia International Equity Fund
PORTFOLIO OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2003
SHARES VALUE
------ -----
INSURANCE - 4.63%
63,700 Allianz AG, Registered Shares................... $ 5,626,120
605 Daido Life Insurance Co., Ltd................... 1,791,949
204,800 Irish Life & Permanent PLC...................... 2,689,393
571 Millea Holdings, Inc............................ 6,457,479
235,000 Mitsui Sumitomo Insurance Co., Ltd.............. 1,712,696
-----------
18,277,637
-----------
REAL ESTATE - 1.92%
557,000 Mitsubishi Estate Co., Ltd...................... 5,274,290
285,000 Sun Hung Kai Properties Ltd..................... 2,309,249
-----------
7,583,539
-----------
HEALTH CARE - 11.22%
HEALTH CARE EQUIPMENT & SUPPLIES - 2.88%
204,000 Olympus Optical Co., Ltd........................ 4,870,439
59,200 ResMed, Inc.*................................... 2,603,616
591,592 Smith & Nephew PLC.............................. 3,894,162
-----------
11,368,217
-----------
PHARMACEUTICALS - 8.34%
337,100 Chugai Pharmaceutical Co., Ltd.................. 4,214,696
117,900 Dr. Reddy's Laboratories Ltd., ADR.............. 2,764,755
304,084 GlaxoSmithKline PLC, ADR........................ 6,313,243
179,340 Novartis AG, Registered Shares.................. 6,943,684
112,800 Ranbaxy Laboratories Ltd., GDR.................. 2,442,120
44,444 Sanofi-Synthelabo SA............................ 2,703,236
32,400 Sawai Pharmaceutical Co., Ltd................... 1,020,724
14,700 Stada Arzneimittel AG........................... 787,908
41,000 Takeda Chemical Industries Ltd.................. 1,497,734
20,000 Taro Pharmaceuticals Industries Ltd.*........... 1,127,200
53,900 Teva Pharmaceutical Industries Ltd., ADR........ 3,080,385
-----------
32,895,685
-----------
INDUSTRIALS - 10.89%
BUILDING PRODUCTS - 1.93%
1,650,150 Siam Cement Public Co., Ltd., NVDR.............. 7,626,224
-----------
COMMERCIAL SERVICES & SUPPLIES - 3.00%
70,200 Adecco SA, Registered Shares.................... 3,470,639
969,900 Amadeus Global Travel Distribution SA, Class A.. 6,102,687
553,800 Capita Group PLC................................ 2,264,564
-----------
11,837,890
-----------
INDUSTRIAL CONGLOMERATES - 2.30%
1,169,300 Big C Supercenter Public Co., Ltd., NVDR........ 522,870
468,900 Burberry Group PLC.............................. 2,537,042
29,800 MMC Norilsk Nickel, ADR......................... 1,467,650
44,200 Siemens AG, Registered Shares................... 2,633,803
170,100 Smiths Group PLC................................ 1,891,590
-----------
9,052,955
-----------
SHARES VALUE
------ -----
MACHINERY - 1.05%
79,000 Atlas Copco AB, Class B..................... $ 2,125,849
48,500 Linde AG.................................... 1,998,271
-----------
4,124,120
-----------
TRADING COMPANIES & DISTRIBUTORS - 0.51%
236,000 Mitsubishi Corp............................. 2,027,124
-----------
TRANSPORTATION INFRASTRUCTURE - 2.10%
413,199 BAA PLC..................................... 3,186,939
4,494,000 Cosco Pacific Ltd........................... 5,106,554
-----------
8,293,493
-----------
INFORMATION TECHNOLOGY - 12.87%
COMMUNICATIONS EQUIPMENT - 1.29%
1,242,900 Nortel Networks Corp.*...................... 5,107,808
-----------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 2.26%
131,000 Ibiden Co., Ltd............................. 1,976,493
18,800 Keyence Corp................................ 4,002,477
49,400 TDK Corp.................................... 2,939,658
-----------
8,918,628
-----------
INTERNET SOFTWARE & SERVICES - 0.73%
289,100 T-Online International AG*.................. 2,893,621
-----------
IT CONSULTING & SERVICES - 1.06%
356,500 Indra Sistemas SA........................... 4,166,399
-----------
OFFICE ELECTRONICS - 1.60%
129,000 Canon, Inc.................................. 6,321,770
-----------
SEMICONDUCTOR EQUIPMENT & PRODUCTS - 5.26%
930,800 ARM Holdings PLC*........................... 1,516,278
21,200 NEC Electronics Corp........................ 1,451,833
146,000 Nikon Corp.................................. 2,031,145
16,091 Samsung Electronics Co., Ltd................ 5,484,217
559,440 Taiwan Semiconductor Manufacturing Co.,
Ltd., ADR*.................................. 6,058,735
63,300 Tokyo Electron Ltd.......................... 4,215,644
-----------
20,757,852
-----------
SOFTWARE - 0.67%
74,900 Dassault Systemes SA........................ 2,626,931
-----------
MATERIALS - 5.04%
CHEMICALS - 1.16%
17,000 L'Air Liquide SA............................ 2,402,758
57,700 Shin-Etsu Chemical Co., Ltd................. 2,175,111
-----------
4,577,869
-----------
See Notes to Financial Statements.
45
Columbia International Equity Fund
PORTFOLIO OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2003
SHARES VALUE
------ -----
METALS & MINING - 2.67%
1,156,841 BHP Billiton Ltd............................. $ 8,310,097
60,100 Compania Vale do Rio Doce, ADR............... 2,217,690
2,000 Compania Vale do Rio Doce, ADR (A)........... --
------------
10,527,787
------------
PAPER & FOREST PRODUCTS - 1.21%
196,853 Stora Enso Oyj, Class R...................... 2,438,236
139,800 UPM - Kymmene Oyj............................ 2,344,058
------------
4,782,294
------------
TELECOMMUNICATION SERVICES - 6.57%
DIVERSIFIED TELECOMMUNICATION SERVICES - 3.04%
459 Nippon Telegraph & Telephone Corp............ 2,084,585
92,400 PT Telekomunikasi Indonesia, ADR............. 1,259,412
1,453,703 Telecom Italia SpA........................... 3,582,502
429,820 Telefonica SA*............................... 5,078,377
------------
12,004,876
------------
WIRELESS TELECOMMUNICATION SERVICES - 3.53%
1,872 NTT DoCoMo, Inc.............................. 4,586,959
4,675,000 Vodafone Group PLC........................... 9,325,226
------------
13,912,185
------------
UTILITIES - 0.99%
ELECTRIC UTILITIES - 0.99%
609,600 National Grid Transco PLC.................... 3,906,302
------------
TOTAL COMMON STOCKS.......................... 390,167,242
------------
(Cost $343,539,444)
RIGHTS - 0.01%
HEALTH CARE - 0.01%
PHARMACEUTICALS - 0.01%
14,700 Stada Arzneimittel AG*, expires 10/13/03..... 32,887
------------
(Cost $0)
PAR VALUE
--------- -
REPURCHASE AGREEMENT - 0.53%
$2,085,000 Repurchase agreement with State Street Bank
& Trust Co., dated 09/30/03, due 10/01/03 at
0.900%, collateralized by a U.S. Treasury Bond
maturing 11/15/21, market value $2,127,457
(repurchase proceeds $2,085,052)................ $2,085,000
----------
(Cost $2,085,000)
TOTAL INVESTMENTS - 99.42%.............. 392,285,129
------------
(Cost $345,624,444)(B)
NET OTHER ASSETS AND LIABILITIES - 0.58% 2,299,355
------------
NET ASSETS - 100.00%.................... $394,584,484
============
- ---------------------------
* Non-income producing security.
(A) Represents fair value as determined in good faith under the direction of
the Board of Trustees.
(B) Cost for federal income tax purposes is $345,949,745.
ACRONYM NAME
- ------- ----
ADR American Depositary Receipt
GDR Global Depositary Receipt
NVDR Non-Voting Depositary Receipt
% OF TOTAL
SUMMARY OF SECURITIES VALUE INVESTMENTS
BY COUNTRY ----- -----------
----------------------------------------------
Japan $ 96,852,464 24.69%
United Kingdom 80,164,765 20.43
France 29,739,907 7.58
Switzerland 23,443,163 5.98
Spain 23,336,466 5.95
Thailand 20,920,533 5.33
Netherlands 18,740,428 4.78
Germany 13,972,610 3.56
Italy 12,737,470 3.25
Australia 8,310,097 2.12
Canada 7,019,633 1.79
Taiwan 6,058,735 1.54
South Korea 5,484,217 1.40
Mexico 5,376,845 1.37
India 5,206,875 1.33
Bermuda 5,106,554 1.30
Finland 4,782,293 1.22
United States** 4,688,616 1.20
Brazil 4,290,750 1.09
Israel 4,207,585 1.07
Ireland 2,689,393 0.69
Hong Kong 2,309,249 0.59
Sweden 2,125,849 0.54
Estonia 1,993,570 0.51
Russia 1,467,650 0.37
Indonesia 1,259,412 0.32
------------ -----------
$392,285,129 100.00%
============ ===========
** Includes Repurchase Agreement
See Notes to Financial Statements.
46
[GRAPHIC]
Columbia Large Cap Core Fund
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 2003
SHARES VALUE
------ -----
COMMON STOCKS - 100.97%
CONSUMER DISCRETIONARY - 14.42%
HOUSEHOLD DURABLES - 0.50%
59,669 Sony Corp., ADR...................... $ 2,081,851
-----------
INTERNET & CATALOG RETAIL - 0.50%
61,879 InterActiveCorp.*.................... 2,053,145
-----------
MEDIA - 6.32%
209,541 Comcast Corp., Class A*.............. 6,458,054
295,467 Disney (Walt) Co..................... 5,959,569
541,908 Liberty Media Corp., Class A*........ 5,402,823
219,257 Viacom, Inc., Class A................ 8,397,543
-----------
26,217,989
-----------
MULTI-LINE RETAIL - 4.25%
103,439 Family Dollar Stores, Inc............ 4,126,182
167,029 Target Corp.......................... 6,285,301
129,029 Wal-Mart Stores, Inc................. 7,206,270
-----------
17,617,753
-----------
SPECIALTY RETAIL - 2.85%
44,378 Best Buy Co., Inc.*.................. 2,108,843
98,902 Lowe's Companies, Inc................ 5,133,014
122,195 Tiffany & Co......................... 4,561,539
-----------
11,803,396
-----------
CONSUMER STAPLES - 7.20%
BEVERAGES - 4.17%
124,434 Anheuser-Busch Companies, Inc........ 6,139,574
243,469 PepsiCo, Inc......................... 11,158,184
-----------
17,297,758
-----------
HOUSEHOLD PRODUCTS - 2.03%
90,506 Procter & Gamble Co.................. 8,400,767
-----------
PERSONAL PRODUCTS - 1.00%
64,438 Avon Products, Inc................... 4,160,117
-----------
ENERGY - 7.32%
ENERGY EQUIPMENT & SERVICES - 2.44%
155,746 Baker Hughes, Inc.................... 4,608,524
162,232 Noble Corp.*......................... 5,514,266
-----------
10,122,790
-----------
OIL & GAS - 4.88%
98,048 Apache Corp.......................... 6,798,648
123,000 BP PLC, ADR.......................... 5,178,300
225,006 Exxon Mobil Corp..................... 8,235,220
-----------
20,212,168
-----------
SHARES VALUE
------ -----
FINANCIALS - 19.03%
BANKS - 7.62%
146,453 Bank of America Corp...................... $11,429,192
135,612 Charter One Financial, Inc................ 4,149,727
172,597 U.S. Bancorp.............................. 4,140,602
99,949 Wachovia Corp............................. 4,116,899
150,963 Wells Fargo & Co.......................... 7,774,594
-----------
31,611,014
-----------
DIVERSIFIED FINANCIALS - 5.69%
410,390 Citigroup, Inc............................ 18,676,849
58,561 Goldman Sachs Group, Inc.................. 4,913,268
-----------
23,590,117
-----------
INSURANCE - 5.72%
198,772 AFLAC, Inc................................ 6,420,336
126,873 American International Group, Inc......... 7,320,572
86,316 Marsh & McLennan Companies, Inc........... 4,109,505
75,453 XL Capital Ltd............................ 5,843,080
-----------
23,693,493
-----------
HEALTH CARE - 14.53%
BIOTECHNOLOGY - 0.37%
53,845 Amylin Pharmaceuticals, Inc.*............. 1,522,737
-----------
HEALTH CARE EQUIPMENT & SUPPLIES - 3.32%
138,382 Guidant Corp.............................. 6,483,197
155,125 Medtronic, Inc............................ 7,278,465
-----------
13,761,662
-----------
HEALTH CARE PROVIDERS & SERVICES - 2.96%
96,731 Caremark Rx, Inc.*........................ 2,186,121
111,400 McKesson Corp............................. 3,708,506
82,984 WellPoint Health Networks, Inc.*.......... 6,396,407
-----------
12,291,034
-----------
PHARMACEUTICALS - 7.88%
77,962 GlaxoSmithKline PLC, ADR.................. 3,305,589
132,789 Johnson & Johnson Co...................... 6,575,711
540,519 Pfizer, Inc............................... 16,420,967
74,720 Teva Pharmaceutical Industries Ltd., ADR.. 4,273,984
45,390 Wyeth..................................... 2,092,479
-----------
32,668,730
-----------
INDUSTRIALS - 15.31%
AEROSPACE & DEFENSE - 2.47%
23,851 Northrop Grumman Corp..................... 2,056,433
105,850 United Technologies Corp.................. 8,180,088
-----------
10,236,521
-----------
See Notes to Financial Statements.
47
Columbia Large Cap Core Fund
PORTFOLIO OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2003
SHARES VALUE
------ -----
AIR FREIGHT & LOGISITICS - 1.52%
97,773 FedEx Corp.................................. $ 6,299,514
-----------
COMMERCIAL SERVICES & SUPPLIES - 3.18%
95,141 Avery Dennison Corp......................... 4,806,523
104,946 First Data Corp............................. 4,193,642
159,667 Waste Management, Inc....................... 4,178,485
-----------
13,178,650
-----------
ELECTRICAL EQUIPMENT - 1.47%
170,000 Harris Corp................................. 6,084,300
-----------
INDUSTRIAL CONGLOMERATES - 4.28%
98,406 3M Co....................................... 6,796,902
367,967 General Electric Co......................... 10,969,096
-----------
17,765,998
-----------
MACHINERY - 2.39%
56,238 Danaher Corp................................ 4,153,739
86,888 Illinois Tool Works, Inc.................... 5,757,199
-----------
9,910,938
-----------
INFORMATION TECHNOLOGY - 17.32%
COMMUNICATIONS EQUIPMENT - 3.31%
516,930 Cisco Systems, Inc.*........................ 10,126,659
230,800 Nokia Oyj, ADR.............................. 3,600,480
-----------
13,727,139
-----------
COMPUTERS & PERIPHERALS - 3.84%
152,931 Dell, Inc.*................................. 5,110,954
51,187 International Business Machines Corp........ 4,521,348
99,781 Lexmark International, Inc.*................ 6,287,201
-----------
15,919,503
-----------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.99%
24,551 Samsung Electronics Co., Ltd., GDR (A)...... 4,149,119
132,894 Tech Data Corp.*............................ 4,099,780
-----------
8,248,899
-----------
IT CONSULTING & SERVICES - 0.78%
144,029 Accenture Ltd.*............................. 3,217,608
-----------
SEMICONDUCTOR EQUIPMENT & PRODUCTS - 2.70%
133,258 Analog Devices, Inc.*....................... 5,066,469
39,516 KLA-Tencor Corp.*........................... 2,039,026
104,005 Maxim Integrated Products, Inc.............. 4,096,757
-----------
11,202,252
-----------
SHARES VALUE
------ -----
SOFTWARE - 4.70%
701,748 Microsoft Corp............................... $19,501,577
-----------
MATERIALS - 3.26%
CHEMICALS - 2.24%
94,000 Air Products & Chemicals, Inc................ 4,239,400
125,935 E.I. du Pont de Nemours & Co................. 5,038,659
-----------
9,278,059
-----------
PAPER & FOREST PRODUCTS - 1.02%
101,040 Bowater, Inc................................. 4,249,742
-----------
TELECOMMUNICATION SERVICES - 1.96%
DIVERSIFIED TELECOMMUNICATION SERVICES - 1.96%
143,388 CenturyTel, Inc.............................. 4,859,419
100,000 Verizon Communications, Inc.................. 3,244,000
-----------
8,103,419
-----------
UTILITIES - 0.62%
MULTI-UTILITIES & UNREGULATED POWER - 0.62%
144,450 Duke Energy Corp............................. 2,572,655
-----------
TOTAL COMMON STOCKS 418,603,295
-----------
(Cost 393,248,010)
TOTAL INVESTMENTS - 100.97%............... 418,603,295
------------
(Cost $393,248,010) (B)
NET OTHER ASSETS AND LIABILITIES - (0.97%) (4,005,400)
------------
NET ASSETS - 100.0%....................... $414,597,895
============
- ---------------------------
* Non-income producing security.
(A) This security is exempt from registration under Rule 144A of the Securities
Act of 1933 and may be resold in transactions exempt from registration,
normally to qualified institutional buyers. At September 30, 2003, the
value of this security amounted to $4,174,161, which represents 1.01% of
net assets.
(B) Cost for federal income tax purposes is $393,338,615.
ACRONYM NAME
- ------- ----
ADR American Depositary Receipt
GDR Global Depositary Receipt
See Notes to Financial Statements.
48
[GRAPHIC]
Columbia Small Cap Fund
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 2003
SHARES VALUE
------ -----
COMMON STOCKS - 89.35%
CONSUMER DISCRETIONARY - 15.74%
AUTO COMPONENTS - 1.06%
285,670 Cooper Tire & Rubber Co................... $ 4,533,583
199,400 R&B, Inc.*................................ 2,568,272
259,900 Sauer-Danfoss, Inc........................ 3,664,590
-----------
10,766,445
-----------
HOTELS, RESTAURANTS & LEISURE - 3.69%
45,475 Applebee's International, Inc............. 1,431,553
189,220 CEC Entertainment, Inc.*.................. 7,417,424
319,000 Checkers Drive-In Restaurants, Inc.*...... 2,934,800
264,800 Friendly Ice Cream Corp.*................. 2,110,456
336,900 Jack in the Box, Inc.*.................... 5,996,820
442,105 O'Charley's, Inc.*........................ 6,556,417
171,500 Ruby Tuesday, Inc......................... 4,134,865
398,650 Ryan's Family Steak Houses, Inc.*......... 5,098,734
119,100 Steak N Shake Co.*........................ 1,774,590
-----------
37,455,659
-----------
HOUSEHOLD DURABLES - 0.62%
138,850 Bassett Furniture Industries, Inc......... 1,881,418
127,400 Kimball International, Inc., Class B...... 1,867,684
256,900 Topps Co., Inc............................ 2,504,775
-----------
6,253,877
-----------
LEISURE EQUIPMENT & PRODUCTS - 0.82%
142,400 Callaway Golf Co.......................... 2,032,048
329,400 RC2 Corp.*................................ 6,327,774
-----------
8,359,822
-----------
MEDIA - 4.82%
229,133 ADVO, Inc.*............................... 9,538,807
331,190 APAC Customer Services, Inc.*............. 827,975
224,200 Catalina Marketing Corp.*................. 3,405,598
144,400 Journal Communications, Inc., Class A*.... 2,389,820
352,500 Journal Register Co.*..................... 6,609,375
1,075,400 Paxson Communications Corp.*.............. 5,333,984
137,200 Pulitzer, Inc............................. 7,148,120
381,600 Regent Communications, Inc.*.............. 2,327,760
201,000 Scholastic Corp.*......................... 5,786,790
253,100 Sinclair Broadcast Group, Inc., Class A*.. 2,571,496
152,400 Young Broadcasting, Inc., Class A*........ 2,985,516
-----------
48,925,241
-----------
SPECIALTY RETAIL - 2.73%
293,800 American Eagle Outfitters*................ 4,365,868
309,900 Buckle, Inc............................... 5,968,674
623,850 InterTAN, Inc.*........................... 5,708,228
256,300 Lithia Motors, Inc., Class A.............. 5,118,311
SHARES VALUE
------ -----
SPECIALTY RETAIL (CONTINUED)
92,750 Rent-A-Center, Inc.*...................... $ 2,995,825
245,300 Too, Inc.*................................ 3,613,269
-----------
27,770,175
-----------
TEXTILES, APPAREL & LUXURY GOODS - 2.00%
296,900 Phillips-Van Heusen Corp.................. 4,456,469
150,200 Rocky Shoes & Boots, Inc.*................ 1,704,770
350,900 Tommy Hilfiger Corp.*..................... 4,179,219
422,800 Unifirst Corp............................. 9,994,992
-----------
20,335,450
-----------
CONSUMER STAPLES - 2.82%
FOOD & DRUG RETAILING - 1.09%
301,570 Casey's General Stores, Inc............... 4,231,027
81,100 Ingles Markets, Inc., Class A............. 794,780
107,600 United Natural Foods, Inc.*............... 3,571,244
227,100 Wild Oats Markets, Inc.*.................. 2,482,203
-----------
11,079,254
-----------
FOOD PRODUCTS - 1.73%
138,800 Corn Products International, Inc.......... 4,420,780
303,200 Delta & Pine Land Co...................... 6,976,632
292,800 Sensient Technologies Corp................ 6,148,800
-----------
17,546,212
-----------
ENERGY - 4.53%
ENERGY EQUIPMENT & SERVICES - 2.49%
156,500 Atwood Oceanics, Inc.*.................... 3,754,435
120,300 Core Laboratories NV*..................... 1,690,215
493,400 Gulfmark Offshore, Inc.*.................. 6,932,270
791,000 Newpark Resources, Inc.*.................. 3,401,300
191,100 Oceaneering International, Inc.*.......... 4,494,672
79,100 Offshore Logistics, Inc.*................. 1,605,730
184,500 Oil States International, Inc.*........... 2,341,305
60,200 Pride International, Inc.*................ 1,020,390
-----------
25,240,317
-----------
OIL & GAS - 2.04%
233,100 Brown (Tom), Inc.......................... 5,990,670
174,900 Cimarex Energy Co.*....................... 3,428,040
223,400 Houston Exploration Co.*.................. 7,841,340
59,245 Plains Exploration & Production Co.*...... 738,785
251,600 Vintage Petroleum, Inc.................... 2,737,408
-----------
20,736,243
-----------
FINANCIALS - 8.01%
BANKS - 3.58%
400,500 First Niagara Financial Group, Inc........ 6,047,550
71,998 Hanmi Financial Corp...................... 1,435,640
206,400 Jefferson Bancshares, Inc................. 2,951,520
227,400 Matrix Bancorp, Inc.*..................... 2,062,518
See Notes to Financial Statements.
49
Columbia Small Cap Fund
PORTFOLIO OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2003
SHARES VALUE
------ -----
BANKS (CONTINUED)
226,125 Oriental Financial Group....................... $ 5,485,793
328,125 Republic Bancorp, Inc.......................... 4,370,625
165,000 Taylor Capital Group, Inc...................... 3,808,200
138,900 Webster Financial Corp......................... 5,539,332
287,200 Willow Grove Bancorp, Inc...................... 4,621,048
-----------
36,322,226
-----------
DIVERSIFIED FINANCIALS - 0.20%
149,200 Psychiatric Solutions, Inc.*................... 2,060,452
-----------
INSURANCE - 2.89%
150,820 AmerUs Group Co................................ 5,127,880
27,600 Direct General Corp.*.......................... 691,932
176,200 Horace Mann Educators Corp..................... 2,556,662
281,600 Ohio Casualty Corp.*........................... 4,083,200
189,900 Phoenix Companies, Inc......................... 2,193,345
18,300 PICO Holdings, Inc.*........................... 239,181
133,100 Presidential Life Corp......................... 2,013,803
112,500 Reinsurance Group of America................... 4,584,375
186,100 Selective Insurance Group, Inc................. 5,538,336
63,900 United Fire & Casualty Co...................... 2,336,184
-----------
29,364,898
-----------
REAL ESTATE - 1.34%
79,200 Corporate Office Properties Trust, Inc., REIT.. 1,465,992
99,250 Healthcare Realty Trust, Inc., REIT............ 3,174,015
166,500 Innkeepers USA Trust, Inc., REIT............... 1,448,550
54,000 Kilroy Realty Corp., REIT...................... 1,541,700
277,825 Medical Office Properties, Inc.* (A)........... 4,384,078
42,900 SL Green Realty Corp., REIT.................... 1,549,119
-----------
13,563,454
-----------
HEALTH CARE - 11.86%
BIOTECHNOLOGY - 1.47%
217,950 BioMarin Pharmaceuticals, Inc.*................ 1,669,497
171,800 CV Therapeutics, Inc.*......................... 3,779,600
487,100 PRAECIS Pharmaceuticals, Inc.*................. 3,268,441
474,100 Serologicals Corp.*............................ 6,234,415
-----------
14,951,953
-----------
HEALTH CARE EQUIPMENT & SUPPLIES - 5.37%
176,850 Datascope Corp................................. 5,436,369
229,900 Haemonetics Corp.*............................. 5,427,939
189,000 Immucor, Inc.*................................. 5,093,550
393,300 Invacare Corp.................................. 14,780,214
257,300 Lifecore Biomedical, Inc.*..................... 1,713,618
286,400 STAAR Surgical Co.*............................ 3,038,704
560,500 Thoratec Corp.*................................ 9,522,895
305,000 West Pharmaceutical Services, Inc.............. 9,549,550
-----------
54,562,839
-----------
SHARES VALUE
------ -----
HEALTH CARE PROVIDERS & SERVICES - 4.18%
598,500 Beverly Enterprises, Inc.*................ $ 3,543,120
145,800 LabOne, Inc.*............................. 3,401,514
17,100 Molina Healthcare, Inc.*.................. 474,525
128,200 Pediatrix Medical Group, Inc.*............ 5,903,610
92,600 Proxymed, Inc.*........................... 1,390,852
609,600 PSS World Medical, Inc.*.................. 5,407,152
869,125 Res-Care, Inc.*........................... 6,692,262
230,000 Select Medical Corp.*..................... 6,624,000
297,400 Triad Hospitals, Inc.*.................... 9,005,272
-----------
42,442,307
-----------
PHARMACEUTICALS - 0.84%
497,226 ICN Pharmaceuticals, Inc.................. 8,532,398
-----------
INDUSTRIALS - 21.13%
AEROSPACE & DEFENSE - 1.60%
599,465 Armor Holdings, Inc.*..................... 10,041,039
54,600 Kaman Corp., Class A...................... 707,616
261,300 Ladish Co., Inc.*......................... 1,633,125
99,000 Moog, Inc., Class A*...................... 3,880,800
-----------
16,262,580
-----------
AIR FREIGHT & LOGISTICS - 1.35%
365,100 AirNet Systems, Inc.*..................... 1,467,702
230,600 J.B. Hunt Transport Services, Inc.*....... 6,000,212
213,100 Ryder System, Inc......................... 6,248,092
-----------
13,716,006
-----------
AIRLINES - 0.38%
350,100 Mesa Air Group, Inc.*..................... 3,886,110
-----------
BUILDING PRODUCTS - 0.76%
390,800 NCI Building Systems, Inc.*............... 7,776,920
-----------
COMMERCIAL SERVICES & SUPPLIES - 5.18%
98,800 Capital Environmental Resource, Inc.*..... 546,265
343,100 Cornell Companies, Inc.*.................. 5,643,995
389,700 FTI Consulting, Inc.*..................... 6,761,295
170,900 G & K Services, Inc., Class A............. 5,981,500
194,400 HMS Holdings Corp.*....................... 670,680
317,100 infoUSA, Inc.*............................ 2,381,421
919,984 Kforce, Inc.*............................. 7,258,674
85,400 Layne Christensen Co.*.................... 819,413
188,100 MPW Industrial Services Group, Inc.*...... 406,296
169,600 Nashua Corp.*............................. 1,348,320
350,330 NCO Group, Inc*........................... 8,222,245
118,210 RemedyTemp, Inc., Class A*................ 1,418,520
155,800 Sotheby's Holdings, Inc., Class A*........ 1,685,756
543,000 Spherion Corp.*........................... 3,779,280
246,200 Tetra Tech, Inc.*......................... 4,901,842
See Notes to Financial Statements.
50
Columbia Small Cap Fund
PORTFOLIO OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2003
SHARES VALUE
------ -----
COMMERCIAL SERVICES & SUPPLIES (CONTINUED)
138,400 Westaff, Inc.*.............................. $ 311,400
87,100 Willis Lease Finance Corp.*................. 478,179
-----------
52,615,081
-----------
CONSTRUCTION & ENGINEERING - 2.06%
359,500 Chicago Bridge & Iron Co. NV, NY Shares..... 9,764,020
109,500 EMCOR Group, Inc.*.......................... 4,659,225
322,400 Mastec, Inc.*............................... 3,127,280
323,200 Shaw Group, Inc.*........................... 3,396,832
-----------
20,947,357
-----------
ELECTRICAL EQUIPMENT - 0.79%
162,700 Powell Industries, Inc.*.................... 2,733,360
301,100 Rayovac Corp.*.............................. 4,396,060
108,207 Wood's (T.B.) Corp.......................... 866,738
-----------
7,996,158
-----------
INDUSTRIAL CONGLOMERATES - 0.21%
179,600 Lydall, Inc.*............................... 2,156,996
-----------
MACHINERY - 6.63%
215,300 AGCO Corp.*................................. 3,690,242
525,005 Albany International Corp., Class A......... 16,191,154
261,600 CIRCOR International, Inc................... 5,022,720
209,400 Denison International PLC, ADR*............. 4,267,572
220,935 Flowserve Corp.*............................ 4,484,981
203,665 Key Technology, Inc.*....................... 2,338,074
106,800 Oshkosh Truck Corp.......................... 4,230,348
139,600 Pentair, Inc................................ 5,565,852
312,100 Reliance Steel & Aluminum Co................ 6,925,499
268,744 Terex Corp.*................................ 4,979,826
229,585 Thomas Industries, Inc...................... 6,547,764
154,200 Valmont Industries, Inc..................... 3,051,618
-----------
67,295,650
-----------
ROAD & RAIL - 2.17%
181,300 Arkansas Best Corp.......................... 4,985,750
403,845 Kansas City Southern*....................... 4,470,564
19,300 Marten Transport Ltd.*...................... 503,730
91,400 P.A.M. Transportation Services, Inc.*....... 1,875,528
101,600 USF Corp.................................... 3,197,352
121,700 Werner Enterprises, Inc..................... 2,788,147
139,900 Yellow Corp.*............................... 4,180,212
-----------
22,001,283
-----------
INFORMATION TECHNOLOGY - 13.55%
COMMUNICATIONS EQUIPMENT - 0.57%
373,290 NMS Communications Corp.*................... 836,170
406,300 Performance Technologies, Inc.*............. 4,977,175
-----------
5,813,345
-----------
SHARES VALUE
------ -----
COMPUTERS & PERIPHERALS - 1.67%
275,600 Agilysys, Inc................................. $ 2,417,012
430,800 Hypercom Corp.*............................... 2,322,012
145,300 Intergraph Corp.*............................. 3,382,584
354,100 Maxtor Corp.*................................. 4,309,397
154,900 Rimage Corp.*................................. 2,083,405
100,000 Storage Technology Corp.*..................... 2,414,000
-----------
16,928,410
-----------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 3.88%
117,700 Analogic Corp................................. 5,649,600
356,500 Benchmark Electronics, Inc.*.................. 15,069,255
47,710 K-Tron International, Inc.*................... 811,070
278,640 Keithley Instruments, Inc..................... 3,942,756
139,500 LeCroy Corp.*................................. 2,236,185
444,212 LSI Industries, Inc........................... 6,258,947
298,010 Technitrol, Inc.*............................. 5,486,364
-----------
39,454,177
-----------
INTERNET SOFTWARE & SERVICES - 0.11%
225,400 Selectica, Inc.*.............................. 1,070,650
-----------
IT CONSULTING & SERVICES - 2.88%
287,960 Acxiom Corp.*................................. 4,538,250
498,900 Analysts International Corp.*................. 1,162,437
792,500 Computer Task Group, Inc...................... 2,773,750
222,000 Gartner, Inc., Class A*....................... 2,446,440
123,100 Integral Systems, Inc.*....................... 2,224,417
301,975 Priority Healthcare Corp., Class B*........... 6,202,566
377,230 ProQuest Co.*................................. 9,921,149
-----------
29,269,009
-----------
SEMICONDUCTOR EQUIPMENT & PRODUCTS - 1.51%
481,400 Anadigics, Inc.*.............................. 2,286,650
170,700 Asyst Technologies, Inc.*..................... 2,401,749
298,200 ChipPAC, Inc., Class A*....................... 1,756,398
341,100 Fairchild Semiconductor International, Inc.,
Class A*...................................... 5,655,438
328,260 Pericom Semiconductor Corp.*.................. 3,282,600
-----------
15,382,835
-----------
SOFTWARE - 2.93%
415,400 Gerber Scientific, Inc.*...................... 2,949,340
71,900 Henry (Jack) & Associates, Inc................ 1,250,341
67,200 MAPICS, Inc.*................................. 659,904
369,000 Mapinfo Corp.*................................ 3,538,710
438,515 MSC.Software Corp.*........................... 3,157,308
238,400 Progress Software Corp.*...................... 5,125,600
504,800 Sybase, Inc.*................................. 8,586,648
275,000 THQ, Inc.*.................................... 4,515,500
-----------
29,783,351
-----------
See Notes to Financial Statements.
51
Columbia Small Cap Fund
PORTFOLIO OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2003
SHARES VALUE
------ -----
MATERIALS - 7.45%
CHEMICALS - 4.04%
239,900 Airgas, Inc.................................. $ 4,270,220
210,860 Albemarle Corp............................... 5,788,107
166,900 Calgon Carbon Corp........................... 939,647
219,200 Cambrex Corp................................. 4,975,840
315,860 Fuller (H.B.) Co............................. 7,665,922
253,600 MacDermid, Inc............................... 6,707,720
191,600 Millennium Chemicals, Inc.*.................. 1,829,780
191,900 Olin Corp.................................... 3,035,858
273,800 Spartech Corp................................ 5,831,940
-----------
41,045,034
-----------
CONTAINERS & PACKAGING - 1.40%
311,300 Greif, Inc., Class A......................... 8,093,800
78,700 Jarden Corp.*................................ 2,970,925
194,800 Longview Fibre Co............................ 1,903,196
234,650 Peak International Ltd.*..................... 1,276,496
-----------
14,244,417
-----------
METALS & MINING - 1.11%
266,600 GrafTech International Ltd.*................. 2,132,800
283,300 Hecla Mining Co.*............................ 1,484,492
267,100 Northwest Pipe Co.*.......................... 3,589,824
265,000 Steel Dynamics, Inc.*........................ 4,012,100
-----------
11,219,216
-----------
PAPER & FOREST PRODUCTS - 0.90%
198,200 Buckeye Technologies, Inc.*.................. 1,801,638
331,440 Glatfelter................................... 3,904,363
250,000 Louisiana-Pacific Corp.*..................... 3,445,000
-----------
9,151,001
-----------
TELECOMMUNICATION SERVICES - 0.57%
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.52%
208,400 CT Communications, Inc....................... 2,354,920
352,300 General Communication, Inc., Class A*........ 2,931,136
-----------
5,286,056
-----------
WIRELESS TELECOMMUNICATION SERVICES - 0.05%
93,000 LCC International, Inc., Class A*............ 477,090
-----------
UTILITIES - 3.69%
ELECTRIC UTILITIES - 0.25%
97,800 Idacorp, Inc................................. 2,493,900
-----------
SHARES VALUE
------ -----
GAS UTILITIES - 3.03%
88,050 Cascade Natural Gas Corp........................ $ 1,725,780
150,750 New Jersey Resources Corp....................... 5,433,030
146,700 Northwest Natural Gas Co........................ 4,254,300
398,100 NUI Corp........................................ 5,951,595
100,500 South Jersey Industries, Inc.................... 3,803,925
286,500 Southwest Gas Corp.............................. 6,503,550
173,800 Southwestern Energy Co.*........................ 3,145,780
------------
30,817,960
------------
WATER UTILITIES - 0.41%
81,150 American States Water Co........................ 1,912,705
94,575 Philadelphia Suburban Corp...................... 2,277,366
------------
4,190,071
------------
TOTAL COMMON STOCKS............................. 907,549,885
------------
(Cost $835,660,495)
CONVERTIBLE PREFERRED STOCK - 0.38%
FINANCIALS - 0.38%
INSURANCE - 0.38%
137,000 United Fire & Casualty Co.,
Series A, 6.380%................................ 3,856,550
------------
(Cost $3,425,000)
PAR VALUE
---------
REPURCHASE AGREEMENT - 10.17%
$103,265,000 Repurchase agreement with State Street Bank
& Trust Co., dated 09/30/03, due 10/01/03 at
0.900%, collateralized by a U.S. Treasury Bond
maturing 11/15/16, market value $105,341,813
(repurchase proceeds $103,267,582),............. 103,265,000
------------
(Cost $103,265,000)
TOTAL INVESTMENTS - 99.90%.............. 1,014,671,435
--------------
(Cost $942,350,495) (B)
NET OTHER ASSETS AND LIABILITIES - 0.10% 1,056,702
--------------
NET ASSETS - 100.00%.................... $1,015,728,137
==============
- ---------------------------
* Non-income producing security.
(A) Represents fair value as determined in good faith under the direction of
the Board of Trustees.
(B) Cost for federal income tax purposes is $942,520,896.
ACRONYM NAME
- ------- ----
ADR American Depositary Receipt
REIT Real Estate Investment Trust
See Notes to Financial Statements.
52
[GRAPHIC]
Columbia Small Company Equity Fund
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 2003
SHARES VALUE
------ -----
COMMON STOCKS - 97.60%
CONSUMER DISCRETIONARY - 17.90%
HOTELS, RESTAURANTS & LEISURE - 4.57%
212,100 Alliance Gaming Corp.*.................... $ 4,301,388
109,100 Applebee's International, Inc............. 3,434,468
231,200 Scientific Games Corp., Class A*.......... 2,637,992
210,200 Station Casinos, Inc...................... 6,432,120
-----------
16,805,968
-----------
HOUSEHOLD DURABLES - 1.38%
107,200 Meritage Corp.*........................... 5,065,200
-----------
MEDIA - 3.75%
102,400 Cumulus Media, Inc., Class A*............. 1,745,920
53,500 Journal Communications, Inc., Class A*.... 885,425
170,100 Lin TV Corp., Class A*.................... 3,616,326
132,200 Radio One, Inc., Class D*................. 1,898,392
396,600 Sinclair Broadcast Group, Inc., Class A*.. 4,029,456
216,300 TiVo, Inc.*............................... 1,602,783
-----------
13,778,302
-----------
SPECIALTY RETAIL - 6.53%
51,500 Advance Auto Parts, Inc.*................. 3,651,350
193,200 Blue Rhino Corp.*......................... 2,140,656
385,600 Bombay Co., Inc.*......................... 3,798,160
68,500 Cost Plus, Inc.*.......................... 2,529,020
95,700 Party City Corp.*......................... 1,184,766
185,300 PETCO Animal Supplies, Inc.*.............. 5,781,360
162,000 Sharper Image Corp.*...................... 3,735,720
79,800 Too, Inc.*................................ 1,175,454
-----------
23,996,486
-----------
TEXTILES, APPAREL & LUXURY GOODS - 1.67%
206,600 Quiksilver, Inc.*......................... 3,295,270
183,200 Warnaco Group, Inc.*...................... 2,856,088
-----------
6,151,358
-----------
CONSUMER STAPLES - 1.51%
FOOD & DRUG RETAILING - 0.66%
59,800 Performance Food Group Co.*............... 2,434,458
-----------
FOOD PRODUCTS - 0.85%
80,800 American Italian Pasta Co., Class A*...... 3,126,152
-----------
ENERGY - 5.50%
ENERGY EQUIPMENT & SERVICES - 3.60%
332,900 Key Energy Services, Inc.*................ 3,212,485
185,300 Matrix Service Co.*....................... 3,290,928
SHARES VALUE
------ -----
ENERGY EQUIPMENT & SERVICES (CONTINUED)
247,800 Maverick Tube Corp.*..................... $ 3,845,856
152,700 Unit Corp.*.............................. 2,876,868
-----------
13,226,137
-----------
OIL & GAS - 1.90%
56,900 Brown (Tom), Inc.*....................... 1,462,330
96,400 Patina Oil & Gas Corp.................... 3,493,536
147,100 Ultra Petroleum Corp.*................... 2,052,045
-----------
7,007,911
-----------
FINANCIALS - 10.03%
BANKS - 3.29%
114,600 Boston Private Financial Holdings, Inc... 2,699,976
84,400 East West Bancorp, Inc................... 3,608,100
90,500 Mercantile Bank Corp..................... 3,004,600
129,800 Prosperity Bancshares, Inc............... 2,766,038
-----------
12,078,714
-----------
DIVERSIFIED FINANCIALS - 3.46%
28,500 ASTA Funding, Inc........................ 740,686
120,150 Commercial Capital Bancorp, Inc.*........ 1,877,944
142,500 Investors Financial Services Corp........ 4,474,500
107,500 Jefferies Group, Inc..................... 3,090,625
109,000 MTC Technologies, Inc.*.................. 2,528,800
-----------
12,712,555
-----------
INSURANCE - 1.98%
104,200 Infinity Property & Casualty Corp........ 2,929,062
66,700 Philadelphia Consolidated Holding Co.*... 3,081,540
38,800 RLI Corp................................. 1,277,296
-----------
7,287,898
-----------
REAL ESTATE - 1.30%
234,600 American Financial Realty Trust.......... 3,307,860
81,860 FirstService Corp.*...................... 1,487,396
-----------
4,795,256
-----------
HEALTH CARE - 19.61%
BIOTECHNOLOGY - 5.34%
261,600 BioMarin Pharmaceuticals, Inc.*.......... 2,003,856
170,600 Ciphergen Biosystems, Inc.*.............. 2,106,910
160,000 Cytogen Corp.*........................... 1,715,200
113,300 Ilex Oncology, Inc.*..................... 1,881,913
52,100 Neurocrine Biosciences, Inc.*............ 2,579,992
180,500 Protein Design Labs, Inc.*............... 2,501,730
295,400 Serologicals Corp.*...................... 3,884,510
148,500 Telik, Inc.*............................. 2,977,425
-----------
19,651,536
-----------
See Notes to Financial Statements.
53
Columbia Small Company Equity Fund
PORTFOLIO OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2003
SHARES VALUE
------ -----
HEALTH CARE EQUIPMENT & SUPPLIES - 8.54%
76,300 Bio-Rad Laboratories, Inc., Class A*...... $ 3,891,300
207,900 Cytyc Corp.*.............................. 3,126,816
145,900 Integra LifeSciences Holdings Corp.*...... 4,127,511
101,500 Kyphon, Inc.*............................. 1,979,250
244,000 Medical Action Industries, Inc.*.......... 3,176,880
96,666 Merit Medical Systems, Inc.*.............. 2,136,319
157,200 Noven Pharmaceuticals, Inc.*.............. 1,792,080
51,900 Respironics, Inc.*........................ 2,168,382
211,900 SonoSite, Inc.*........................... 4,240,119
117,100 Wright Medical Group, Inc.*............... 2,960,288
55,700 Zoll Medical Corp.*....................... 1,785,185
-----------
31,384,130
-----------
HEALTH CARE PROVIDERS & SERVICES - 1.31%
62,100 LifePoint Hospitals, Inc.*................ 1,493,505
73,900 U.S. Physical Therapy, Inc.*.............. 903,871
80,700 WellChoice, Inc.*......................... 2,431,491
-----------
4,828,867
-----------
PHARMACEUTICALS - 4.42%
27,800 Caraco Pharmaceutical Laboratories Ltd.*.. 273,241
50,400 DOV Pharmaceutical, Inc.*................. 904,680
76,700 InterMune, Inc.*.......................... 1,463,436
276,500 Nektar Therapeutics*...................... 3,539,200
183,400 Salix Pharmaceuticals Ltd.*............... 3,532,284
168,000 SICOR, Inc.*.............................. 3,239,040
58,300 Taro Pharmaceuticals Industries Ltd.*..... 3,285,788
-----------
16,237,669
-----------
INDUSTRIALS - 12.33%
AEROSPACE & DEFENSE - 1.13%
115,900 DRS Technologies, Inc.*................... 2,796,667
63,800 Mercury Computer Systems, Inc.*........... 1,360,854
-----------
4,157,521
-----------
AIR FREIGHT & LOGISTICS - 1.92%
282,000 EGL, Inc.*................................ 5,126,760
63,600 UTI Worldwide, Inc........................ 1,941,708
-----------
7,068,468
-----------
COMMERCIAL SERVICES & SUPPLIES - 4.24%
85,000 Arbitron, Inc.*........................... 3,000,500
63,300 Corporate Executive Board Co.*............ 2,971,935
112,400 FTI Consulting, Inc.*..................... 1,950,140
185,500 Integrated Alarm Services Group, Inc.*.... 1,549,667
121,400 Navigant Consulting, Inc.*................ 1,494,434
108,900 NCO Group, Inc.*.......................... 2,555,883
75,600 Sylvan Learning Systems, Inc.*............ 2,062,368
-----------
15,584,927
-----------
SHARES VALUE
------ -----
CONSTRUCTION & ENGINEERING - 0.73%
98,900 Chicago Bridge & Iron Co. NV, NY Shares..... $ 2,686,124
-----------
MACHINERY - 1.47%
101,900 AGCO Corp.*................................. 1,746,566
63,575 Cuno, Inc.*................................. 2,491,511
80,200 UNOVA, Inc.*................................ 1,174,930
-----------
5,413,007
-----------
ROAD & RAIL - 2.84%
94,000 Dollar Thrifty Automotive Group, Inc.*...... 2,135,680
146,500 Genesee & Wyoming, Inc., Class A*........... 3,473,515
109,300 Heartland Express, Inc...................... 2,625,386
20,600 Marten Transport, Ltd.*..................... 537,660
57,000 Old Dominion Freight Line, Inc.*............ 1,658,130
-----------
10,430,371
-----------
INFORMATION TECHNOLOGY - 28.52%
COMMUNICATIONS EQUIPMENT - 0.98%
85,600 F5 Networks, Inc.*.......................... 1,646,944
874,300 Finisar Corp.*.............................. 1,967,175
-----------
3,614,119
-----------
COMPUTERS & PERIPHERALS - 2.93%
140,300 Applied Films Corp.*........................ 4,171,119
348,300 Cray, Inc.*................................. 3,824,334
330,400 Pinnacle Systems, Inc.*..................... 2,785,272
-----------
10,780,725
-----------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 3.53%
72,000 Anixter International, Inc.*................ 1,639,440
95,700 Coherent, Inc.*............................. 2,357,091
131,200 Global Imaging Systems, Inc.*............... 3,227,520
140,300 Itron, Inc.*................................ 2,815,821
69,300 Planar Systems, Inc.*....................... 1,486,485
368,500 Superconductor Technologies, Inc.*.......... 1,448,205
-----------
12,974,562
-----------
INTERNET SOFTWARE & SERVICES - 2.02%
93,400 Digital River, Inc.*........................ 2,554,490
232,300 Digitas, Inc.*.............................. 1,686,498
83,800 PEC Solutions, Inc.*........................ 1,236,888
242,400 webMethods, Inc.*........................... 1,934,352
-----------
7,412,228
-----------
IT CONSULTING & SERVICES - 2.40%
82,200 Anteon International Corp.*................. 2,515,320
87,600 Cognizant Technology Solutions Corp.*....... 3,194,772
235,900 GRIC Communications, Inc.*.................. 1,658,377
70,900 Priority Healthcare Corp., Class B*......... 1,456,286
-----------
8,824,755
-----------
See Notes to Financial Statements.
54
Columbia Small Company Equity Fund
PORTFOLIO OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2003
SHARES VALUE
------ -----
SEMICONDUCTOR EQUIPMENT & PRODUCTS - 10.07%
219,400 Artisan Components, Inc.*............. $ 3,688,114
85,500 August Technology Corp.*.............. 1,217,520
185,000 Brooks Automation, Inc.*.............. 3,866,500
58,100 Cymer, Inc.*.......................... 2,393,720
76,300 DSP Group, Inc.*...................... 1,900,633
344,132 Entegris, Inc.*....................... 3,888,692
244,100 GlobespanVirata, Inc.*................ 1,762,402
75,600 Integrated Circuit Systems, Inc.*..... 2,271,024
303,000 Lattice Semiconductor Corp.*.......... 2,154,330
246,000 Monolithic System Technology, Inc.*... 2,068,860
205,000 Mykrolis Corp.*....................... 2,488,700
579,600 Silicon Image, Inc.*.................. 2,613,996
343,000 Silicon Storage Technology, Inc.*..... 3,001,250
165,300 Skyworks Solutions, Inc.*............. 1,504,230
113,600 Zoran Corp.*.......................... 2,215,200
-----------
37,035,171
-----------
SOFTWARE - 6.59%
191,400 Activision, Inc.*..................... 2,287,230
357,300 Borland Software Corp.*............... 3,290,733
165,600 Captiva Software Corp.*............... 1,240,344
118,400 Documentum, Inc.*..................... 2,523,104
205,200 Epicor Software Corp.*................ 1,834,488
88,900 Henry (Jack) & Associates, Inc........ 1,545,971
126,400 Magma Design Automation, Inc.*........ 2,479,968
383,900 Micromuse, Inc.*...................... 3,140,302
709,700 OpenTV Corp.*......................... 2,342,010
54,300 Take-Two Interactive Software, Inc.*.. 1,855,431
129,400 Verity, Inc.*......................... 1,691,258
-----------
24,230,839
-----------
SHARES VALUE
------ -----
MATERIALS - 2.20%
CONSTRUCTION MATERIALS - 0.20%
58,900 AMCOL International Corp........................ $ 728,004
------------
CONTAINERS & PACKAGING - 2.00%
194,500 Jarden Corp.*................................... 7,342,375
------------
TOTAL COMMON STOCKS............................. 358,851,793
------------
(Cost $310,649,791)
PAR VALUE
---------
REPURCHASE AGREEMENT - 2.18%
$8,025,000 Repurchase agreement with State Street Bank
& Trust Co., dated 09/30/03, due 10/01/03 at
0.900%, collateralized by a U.S. Treasury Bond
maturing 08/15/22, market value $8,190,832
(repurchase proceeds $8,025,201)................ 8,025,000
------------
(Cost $8,025,000)
TOTAL INVESTMENTS - 99.78%................... 366,876,793
------------
(Cost $318,674,791) (A)
NET OTHER ASSETS AND LIABILITIES - 0.22%..... 800,720
------------
NET ASSETS - 100.00%......................... $367,677,513
============
- ---------------------------
* Non-income producing security.
(A) Cost for federal income tax purposes is $319,513,773.
See Notes to Financial Statements.
55
[GRAPHIC]
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2003
COLUMBIA COLUMBIA COLUMBIA
ASSET ALLOCATION LARGE CAP GROWTH DISCIPLINED
FUND (A) FUND (B) VALUE FUND (C)
---------------- ---------------- --------------
ASSETS:
Investments (Note 2):
Investments at cost.............................................. $421,414,279 $ 857,065,558 $338,254,021
Repurchase agreement............................................. 12,258,000 15,888,000 3,643,000
Net unrealized appreciation...................................... 32,919,499 98,853,772 23,122,680
---------------- ---------------- --------------
Total investments at value...................................... 466,591,778 971,807,330 365,019,701
Cash............................................................... 153,191 466 79,006
Foreign currency (cost of $29,075 and $558,363, respectively)...... 30,028 -- --
Receivable for investments sold.................................... 2,969,734 3,363,015 --
Receivable for shares sold......................................... 206,231 1,266,847 382,570
Interest and dividend receivables.................................. 2,211,456 388,854 486,909
Deferred Trustees' compensation plan............................... 21,707 42,801 16,651
---------------- ---------------- --------------
Total assets.................................................... 472,184,125 976,869,313 365,984,837
---------------- ---------------- --------------
LIABILITIES:
Payable for investments purchased.................................. 1,795,943 8,412,206 78,781
Payable for shares repurchased..................................... 1,701,903 2,507,375 989,621
Advisory fee payable (Note 4)...................................... 282,236 588,248 220,418
Administration fee payable (Note 4)................................ 26,389 54,373 19,690
Transfer agent fee payable......................................... 151,596 212,404 75,657
Pricing and bookkeeping fees....................................... 28,241 8,022 4,722
Trustees' fees..................................................... 2,715 859 302
Custody fee........................................................ 35,294 2,477 1,959
Distribution and service fees...................................... 100,691 122,333 42,327
Deferred Trustees' fees............................................ 21,707 42,801 16,651
Foreign capital gains tax.......................................... 74,102 -- --
Other liabilities.................................................. 127,489 146,691 65,906
---------------- ---------------- --------------
Total liabilities............................................... 4,348,306 12,097,789 1,516,034
---------------- ---------------- --------------
NET ASSETS.......................................................... $467,835,819 $ 964,771,524 $364,468,803
================ ================ ==============
NET ASSETS CONSIST OF:
Par value (Note 5)................................................. $ 33,401 $ 54,595 $ 32,747
Paid-in capital in excess of par value............................. 474,434,389 1,042,753,127 407,010,009
Undistributed net investment income................................ 821,590 312,712 1,766,812
Accumulated net realized loss on investments sold, foreign currency
transactions and futures contracts................................ (40,299,439) (177,202,682) (67,463,445)
Net unrealized appreciation of investments and foreign currency
translations...................................................... 32,845,878 98,853,772 23,122,680
---------------- ---------------- --------------
NET ASSETS.......................................................... $467,835,819 $ 964,771,524 $364,468,803
================ ================ ==============
COLUMBIA
INTERNATIONAL
EQUITY FUND (D)
---------------
ASSETS:
Investments (Note 2):
Investments at cost.............................................. $ 343,539,444
Repurchase agreement............................................. 2,085,000
Net unrealized appreciation...................................... 46,660,685
---------------
Total investments at value...................................... 392,285,129
Cash............................................................... 185
Foreign currency (cost of $29,075 and $558,363, respectively)...... 558,825
Receivable for investments sold.................................... 2,095,021
Receivable for shares sold......................................... 1,173,268
Interest and dividend receivables.................................. 1,182,365
Deferred Trustees' compensation plan............................... 17,293
---------------
Total assets.................................................... 397,312,086
---------------
LIABILITIES:
Payable for investments purchased.................................. 306
Payable for shares repurchased..................................... 989,038
Advisory fee payable (Note 4)...................................... 219,321
Administration fee payable (Note 4)................................ 21,171
Transfer agent fee payable......................................... 78,190
Pricing and bookkeeping fees....................................... 11,009
Trustees' fees..................................................... 2,865
Custody fee........................................................ 60,310
Distribution and service fees...................................... 19,758
Deferred Trustees' fees............................................ 17,293
Foreign capital gains tax.......................................... 1,195,135
Other liabilities.................................................. 113,206
---------------
Total liabilities............................................... 2,727,602
---------------
NET ASSETS.......................................................... $ 394,584,484
===============
NET ASSETS CONSIST OF:
Par value (Note 5)................................................. $ 35,929
Paid-in capital in excess of par value............................. 712,143,921
Undistributed net investment income................................ 2,905,261
Accumulated net realized loss on investments sold, foreign currency
transactions and futures contracts................................ (366,030,108)
Net unrealized appreciation of investments and foreign currency
translations...................................................... 45,529,481
---------------
NET ASSETS.......................................................... $ 394,584,484
===============
See Notes to Financial Statements.
56
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
SEPTEMBER 30, 2003
COLUMBIA COLUMBIA COLUMBIA COLUMBIA
ASSET ALLOCATION LARGE CAP GROWTH DISCIPLINED INTERNATIONAL
FUND (A) FUND (B) VALUE FUND (C) EQUITY FUND (D)
---------------- ---------------- -------------- ---------------
NET ASSETS:
Class A................................................. $ 1,211,133 $ 1,886,932 $ 903,475 $ 267,627
================ ================ ============== ===============
Class B................................................. $ 2,539,022 $ 1,012,583 $ 337,891 $ 249,619
================ ================ ============== ===============
Class C................................................. $ 187,131 $ 524,230 $ 23,541 $ 6,458
================ ================ ============== ===============
Class G................................................. $ 56,382,894 $ 54,849,980 $ 11,074,488 $ 4,976,130
================ ================ ============== ===============
Class T................................................. $189,580,470 $235,848,663 $127,992,860 $ 42,195,297
================ ================ ============== ===============
Class Z................................................. $217,935,169 $670,649,136 $224,136,548 $346,889,353
================ ================ ============== ===============
SHARES OF BENEFICIAL INTEREST OUTSTANDING:
Class A................................................. 86,463 107,262 81,965 24,701
================ ================ ============== ===============
Class B................................................. 181,390 59,718 32,219 23,214
================ ================ ============== ===============
Class C................................................. 13,367 30,878 2,248 603
================ ================ ============== ===============
Class G................................................. 4,028,618 3,339,302 1,055,047 466,346
================ ================ ============== ===============
Class T................................................. 13,529,911 13,474,943 11,634,259 3,914,723
================ ================ ============== ===============
Class Z................................................. 15,561,144 37,582,453 19,941,000 31,499,331
================ ================ ============== ===============
CLASS A:
Net asset value per share (e)........................... $ 14.01 $ 17.59 $ 11.02 $ 10.83
================ ================ ============== ===============
Maximum sales charge.................................... 5.75% 5.75% 5.75% 5.75%
================ ================ ============== ===============
Maximum offering price per share
(net asset value per share/0.9425) (f)................. $ 14.86 $ 18.66 $ 11.69 $ 11.49
================ ================ ============== ===============
CLASS B:
Net asset value and offering price per share (e)........ $ 14.00 $ 16.96 $ 10.49 $ 10.75
================ ================ ============== ===============
CLASS C:
Net asset value and offering price per share (e)........ $ 14.00 $ 16.98 $ 10.47 $ 10.71
================ ================ ============== ===============
CLASS G:
Net asset value and offering price per share (e)........ $ 14.00 $ 16.43 $ 10.50 $ 10.67
================ ================ ============== ===============
CLASS T:
Net asset value per share (e)........................... $ 14.01 $ 17.50 $ 11.00 $ 10.78
================ ================ ============== ===============
Maximum sales charge.................................... 5.75% 5.75% 5.75% 5.75%
================ ================ ============== ===============
Maximum offering price per share
(net asset value per share/0.9425) (f)................. $ 14.86 $ 18.57 $ 11.67 $ 11.44
================ ================ ============== ===============
CLASS Z:
Net asset value, offering and redemption price per share $ 14.01 $ 17.84 $ 11.24 $ 11.01
================ ================ ============== ===============
- -------------------
(a) Effective November 18, 2002, the Galaxy Asset Allocation Fund Prime A,
Prime B, Retail B, Retail A and Trust shares were reorganized as Liberty
Asset Allocation Fund Class A, Class B, Class G, Class T and Class Z
shares, respectively. Subsequently, the Fund began offering Class C shares.
Effective October 13, 2003, the Liberty Asset Allocation Fund was renamed
Columbia Asset Allocation Fund.
(b) Effective November 18, 2002, the Galaxy Equity Growth Fund Prime A, Prime
B, Retail B, Retail A and Trust shares were reorganized as Liberty Equity
Growth Fund Class A, Class B, Class G, Class T and Class Z shares,
respectively. Subsequently, the Fund began offering Class C shares.
Effective October 13, 2003, the Liberty Equity Growth Fund was renamed
Columbia Large Cap Growth Fund.
(c) Effective November 25, 2002, the Galaxy Equity Value Fund Retail B, Retail
A and Trust shares were reorganized as Liberty Equity Value Fund Class G,
Class T and Class Z shares, respectively. Subsequently, the Fund began
offering Class A, Class B and Class C shares. Effective October 13, 2003,
the Liberty Equity Value Fund was renamed Columbia Disciplined Value Fund.
(d) Effective November 18, 2002, the Galaxy International Equity Fund Prime A,
Prime B, Retail B, Retail A and Trust shares were reorganized as Liberty
International Equity Fund Class A, Class B, Class G, Class T and Class Z
shares, respectively. Subsequently, the Fund began offering Class C shares.
Effective October 13, 2003, the Liberty International Equity Fund was
renamed Columbia International Equity Fund.
(e) Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
(f) On sales of $50,000 or more the offering price is reduced.
See Notes to Financial Statements.
57
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
SEPTEMBER 30, 2003
COLUMBIA COLUMBIA
LARGE CAP CORE SMALL CAP
FUND (A) FUND (B)
-------------- --------------
ASSETS:
Investments (Note 2):
Investments at cost..................................................................... $393,248,010 $ 839,085,495
Repurchase agreement.................................................................... -- 103,265,000
Net unrealized appreciation............................................................. 25,355,285 72,320,940
-------------- --------------
Total investments at value............................................................. 418,603,295 1,014,671,435
Cash...................................................................................... -- 26,381
Receivable for investments sold........................................................... 200,953,346 462,095
Receivable for shares sold................................................................ 162,311 5,711,669
Interest and dividend receivables......................................................... 463,891 575,424
Deferred Trustees' compensation plan...................................................... 20,552 13,872
Other assets.............................................................................. 3,077 --
-------------- --------------
Total assets........................................................................... 620,206,472 1,021,460,876
-------------- --------------
LIABILITIES:
Payable to custodian bank................................................................. 324,819 --
Payable for investments purchased......................................................... 203,252,729 3,732,944
Payable for shares repurchased............................................................ 1,290,443 1,079,281
Advisory fee payable (Note 4)............................................................. 281,101 608,084
Administration fee payable (Note 4)....................................................... 24,547 56,395
Transfer agent fee payable................................................................ 118,242 91,526
Pricing and bookkeeping fees.............................................................. 4,731 8,138
Trustees' fees............................................................................ 1,829 893
Custody fee............................................................................... 2,001 3,638
Distribution and service fees............................................................. 125,726 77,889
Deferred Trustees' fees................................................................... 20,552 13,872
Other liabilities......................................................................... 161,857 60,079
-------------- --------------
Total liabilities...................................................................... 205,608,577 5,732,739
-------------- --------------
NET ASSETS................................................................................. $414,597,895 $1,015,728,137
============== ==============
NET ASSETS CONSIST OF:
Par value (Note 5)........................................................................ $ 37,051 $ 66,049
Paid-in capital in excess of par value.................................................... 408,601,949 910,588,957
Undistributed net investment income (accumulated net investment loss)..................... 193,079 214,302
Accumulated net realized gain (loss) on investments sold and foreign currency transactions (19,589,469) 32,537,889
Net unrealized appreciation of investments................................................ 25,355,285 72,320,940
-------------- --------------
NET ASSETS................................................................................. $414,597,895 $1,015,728,137
============== ==============
COLUMBIA
SMALL COMPANY
EQUITY FUND (C)
---------------
ASSETS:
Investments (Note 2):
Investments at cost..................................................................... $ 310,649,791
Repurchase agreement.................................................................... 8,025,000
Net unrealized appreciation............................................................. 48,202,002
---------------
Total investments at value............................................................. 366,876,793
Cash...................................................................................... 500,123
Receivable for investments sold........................................................... 3,743,205
Receivable for shares sold................................................................ 1,963,557
Interest and dividend receivables......................................................... 74,850
Deferred Trustees' compensation plan...................................................... 14,832
Other assets.............................................................................. 544
---------------
Total assets........................................................................... 373,173,904
---------------
LIABILITIES:
Payable to custodian bank................................................................. --
Payable for investments purchased......................................................... 2,521,534
Payable for shares repurchased............................................................ 2,540,772
Advisory fee payable (Note 4)............................................................. 236,871
Administration fee payable (Note 4)....................................................... 21,160
Transfer agent fee payable................................................................ 77,573
Pricing and bookkeeping fees.............................................................. 4,964
Trustees' fees............................................................................ 311
Custody fee............................................................................... 2,330
Distribution and service fees............................................................. 26,716
Deferred Trustees' fees................................................................... 14,832
Other liabilities......................................................................... 49,328
---------------
Total liabilities...................................................................... 5,496,391
---------------
NET ASSETS................................................................................. $ 367,677,513
===============
NET ASSETS CONSIST OF:
Par value (Note 5)........................................................................ $ 25,062
Paid-in capital in excess of par value.................................................... 421,117,039
Undistributed net investment income (accumulated net investment loss)..................... (8,888)
Accumulated net realized gain (loss) on investments sold and foreign currency transactions (101,657,702)
Net unrealized appreciation of investments................................................ 48,202,002
---------------
NET ASSETS................................................................................. $ 367,677,513
===============
See Notes to Financial Statements.
58
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
SEPTEMBER 30, 2003
COLUMBIA COLUMBIA COLUMBIA
LARGE CAP CORE SMALL CAP SMALL COMPANY
FUND (A) FUND (B) EQUITY FUND (C)
-------------- ------------ ---------------
NET ASSETS:
Class A................................................. $ 7,569,660 $ 57,462,253 $ 384,207
============== ============ ===============
Class B................................................. $ 1,755,172 $ 11,121,643 $ 202,969
============== ============ ===============
Class C................................................. $ 223,486 $ 12,669,645 $ 56,240
============== ============ ===============
Class G................................................. $ 28,916,936 $ 10,353,302 $ 6,650,818
============== ============ ===============
Class T................................................. $185,938,009 $134,455,034 $ 66,780,232
============== ============ ===============
Class Z................................................. $190,194,632 $789,666,260 $293,603,047
============== ============ ===============
SHARES OF BENEFICIAL INTEREST OUTSTANDING:
Class A................................................. 674,529 3,756,232 27,253
============== ============ ===============
Class B................................................. 159,712 753,866 15,311
============== ============ ===============
Class C................................................. 20,343 857,781 4,253
============== ============ ===============
Class G................................................. 2,654,693 707,509 502,373
============== ============ ===============
Class T................................................. 16,633,696 8,868,966 4,740,682
============== ============ ===============
Class Z................................................. 16,908,169 51,104,836 19,772,047
============== ============ ===============
CLASS A:
Net asset value per share (d)........................... $ 11.22 $ 15.30 $ 14.10
============== ============ ===============
Maximum sales charge.................................... 5.75% 5.75% 5.75%
============== ============ ===============
Maximum offering price per share
(net asset value per share/0.9425) (e)................. $ 11.90 $ 16.23 $ 14.96
============== ============ ===============
CLASS B:
Net asset value and offering price per share (d)........ $ 10.99 $ 14.75 $ 13.26
============== ============ ===============
CLASS C:
Net asset value and offering price per share (d)........ $ 10.99 $ 14.77 $ 13.22
============== ============ ===============
CLASS G:
Net asset value and offering price per share (d)........ $ 10.89 $ 14.63 $ 13.24
============== ============ ===============
CLASS T:
Net asset value per share (d)........................... $ 11.18 $ 15.16 $ 14.09
============== ============ ===============
Maximum sales charge.................................... 5.75% 5.75% 5.75%
============== ============ ===============
Maximum offering price per share
(net asset value per share/0.9425) (e)................. $ 11.86 $ 16.08 $ 14.95
============== ============ ===============
CLASS Z:
Net asset value, offering and redemption price per share $ 11.25 $ 15.45 $ 14.85
============== ============ ===============
- -------------------
(a) Effective December 9, 2002, the Galaxy Large Cap Value Fund Prime A, Prime
B, Retail B, Retail A and Trust shares were reorganized as Liberty Large
Cap Core Fund (formerly known as Galaxy Growth & Income Fund) Class A,
Class B, Class G, Class T and Class Z shares, respectively. Subsequently,
the Fund began offering Class C shares. Effective October 13, 2003, the
Liberty Large Cap Core Fund was renamed Columbia Large Cap Core Fund.
(b) Effective November 18, 2002, the Galaxy Small Cap Value Fund Prime A, Prime
B, Retail B, Retail A and Trust shares were reorganized as Liberty Small
Cap Fund Class A, Class B, Class G, Class T and Class Z shares,
respectively. Subsequently, the Fund began offering Class C shares.
Effective October 13, 2003, the Liberty Small Cap Fund was renamed Columbia
Small Cap Fund.
(c) Effective November 18, 2002, the Galaxy Small Company Equity Fund Retail B,
Retail A and Trust shares were reorganized as Liberty Small Company Equity
Fund Class G, Class T and Class Z shares, respectively. Subsequently, the
Fund began offering Class A, Class B and Class C shares. Effective October
13, 2003, the Liberty Small Company Equity Fund was renamed Columbia Small
Company Equity Fund.
(d) Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
(e) On sales of $50,000 or more the offering price is reduced.
See Notes to Financial Statements.
59
[GRAPHIC]
STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDED SEPTEMBER 30, 2003 (A)
COLUMBIA COLUMBIA COLUMBIA COLUMBIA
ASSET ALLOCATION LARGE CAP GROWTH DISCIPLINED VALUE INTERNATIONAL
FUND FUND FUND EQUITY FUND
---------------- ---------------- ----------------- -------------
INVESTMENT INCOME:
Dividends (Note 2)............................... $ 4,767,403 $ 10,907,624 $ 5,501,886 $ 8,237,507
Interest (Note 2)................................ 9,759,268 215,948 43,469 119,785
Other income..................................... 11,753 6,728 52,738 --
Less: foreign withholding tax.................... (114,934) (125,073) -- (884,606)
---------------- ---------------- ----------------- -------------
Total investment income......................... 14,423,490 11,005,227 5,598,093 7,472,686
---------------- ---------------- ----------------- -------------
EXPENSES:
Investment advisory fee (Note 4)................. 3,366,163 6,438,001 2,263,743 3,241,027
Administration fee (Note 4)...................... 301,292 575,264 202,228 241,010
Service fee (Note 4):
Class A......................................... 690 1,297 1,010 552
Class B......................................... 2,309 1,358 255 237
Class C......................................... 187 502 30 31
Class G......................................... 179,954 165,789 40,693 13,020
Class T......................................... 506,628 621,536 328,843 107,527
Distribution fee (Note 4):
Class B......................................... 6,985 4,067 766 715
Class C......................................... 561 1,510 90 93
Class G......................................... 393,815 359,210 89,077 28,210
Pricing and bookkeeping fees (Note 4)............ 137,939 86,988 53,192 80,507
Transfer agent fee (Note 4):
Class A......................................... 1,492 1,788 896 815
Class B......................................... 3,464 1,887 470 569
Class C......................................... 374 509 140 201
Class G......................................... 203,754 291,862 64,247 36,843
Class T......................................... 485,177 691,770 344,303 196,060
Class Z......................................... 540,356 953,902 265,355 356,205
Trustees' fees (Note 4).......................... 9,656 9,585 11,502 11,211
Custody fee...................................... 176,207 20,527 10,706 227,437
Other expenses................................... 122,473 146,636 148,130 170,591
---------------- ---------------- ----------------- -------------
Total expenses before reimbursement/waiver...... 6,439,476 10,373,988 3,825,676 4,712,861
---------------- ---------------- ----------------- -------------
Less: Custody credits............................ (965) -- (724) (508)
Less: Fees and expenses waived or reimbursement
by Advisor...................................... (35,559) (200,448) -- (899,720)
Less: Fees waived by Transfer Agent:
Class C......................................... -- -- (59) (177)
Class G......................................... -- -- -- (10,346)
Class T......................................... -- -- -- (39,434)
---------------- ---------------- ----------------- -------------
Total expenses net of reimbursement............. 6,402,952 10,173,540 3,824,893 3,762,676
---------------- ---------------- ----------------- -------------
NET INVESTMENT INCOME (LOSS)...................... 8,020,538 831,687 1,773,200 3,710,010
---------------- ---------------- ----------------- -------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS, FOREIGN CURRENCY AND FUTURES
CONTRACTS (NOTES 2&7):
Net realized gain (loss) on investments sold..... (10,402,661) (33,599,244) 3,691,251 (35,868,072)
Net realized gain (loss) on foreign currency
transactions.................................... (126,886) -- -- (691,226)
Net realized gain on futures contracts........... 77,195 -- -- --
Foreign capital gains tax........................ (8,736) -- -- (98,275)
Net change in unrealized appreciation
(depreciation) on investments, foreign currency
translations and foreign capital gains tax...... 46,417,019 118,125,297 41,060,980 95,365,607
---------------- ---------------- ----------------- -------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS, FOREIGN CURRENCY AND FUTURES
CONTRACTS (NOTES 2&7)............................. 35,955,931 84,526,053 44,752,231 58,708,034
---------------- ---------------- ----------------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS........................................ $ 43,976,469 $ 85,357,740 $46,525,431 $ 62,418,044
================ ================ ================= =============
- -------------------
(a) The Funds have changed their fiscal year end from October 31 to September
30.
See Notes to Financial Statements.
60
COLUMBIA COLUMBIA COLUMBIA
LARGE CAP SMALL CAP SMALL COMPANY
CORE FUND FUND EQUITY FUND
- ------------ ------------ -------------
$ 8,476,422 $ 6,851,671 $ 460,294
23,864 579,336 116,764
-- -- --
(35,809) (21,411) (3,283)
- ------------ ------------ -------------
8,464,477 7,409,596 573,775
- ------------ ------------ -------------
3,311,147 5,236,037 2,185,225
297,280 467,843 195,213
13,382 37,575 244
1,305 7,805 104
233 6,451 18
95,006 25,555 22,103
484,124 318,591 156,029
3,952 23,415 313
700 19,354 53
207,909 56,912 48,374
64,792 86,749 53,784
21,932 25,506 530
2,810 9,068 273
425 6,043 71
137,216 27,356 49,787
526,604 223,048 219,431
374,292 439,579 518,528
9,442 10,100 9,702
18,438 24,204 16,146
115,185 201,467 160,056
- ------------ ------------ -------------
5,686,174 7,252,658 3,635,984
- ------------ ------------ -------------
-- (1,792) (909)
-- (121,024) --
-- -- --
(17,053) -- --
-- -- (25,753)
- ------------ ------------ -------------
5,669,121 7,129,842 3,609,322
- ------------ ------------ -------------
2,795,356 279,754 (3,035,547)
- ------------ ------------ -------------
(16,524,653) 36,226,379 (200,156)
-- -- --
-- -- --
-- -- --
50,850,870 154,698,131 77,738,196
- ------------ ------------ -------------
34,326,217 190,924,510 77,538,040
- ------------ ------------ -------------
$ 37,121,573 $191,204,264 $74,502,493
============ ============ =============
61
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 2002
COLUMBIA COLUMBIA COLUMBIA
ASSET ALLOCATION LARGE CAP DISCIPLINED
FUND GROWTH FUND VALUE FUND
---------------- ------------- ------------
INVESTMENT INCOME:
Interest (Note 2)...................... $ 13,809,087 $ 747,306 $ 130,598
Dividends (Note 2)..................... 3,434,457 14,786,428 3,699,639
Other income........................... 21,086 242,397 152,890
Less: foreign withholding tax.......... (2,349) (142,153) (3,394)
---------------- ------------- ------------
Total investment income............... 17,262,281 15,633,978 3,979,733
---------------- ------------- ------------
EXPENSES:
Investment advisory fee (Note 4)....... 4,134,599 9,319,653 2,892,338
Administration fee (Note 4)............ 362,029 816,305 253,397
Custodian fee.......................... 35,238 18,739 14,720
Service fee (Note 4):
Class B............................... 854 684 --
Class G............................... 276,592 252,213 71,329
Class T............................... 722,543 872,400 480,502
Distribution fee (Note 4):
Class A............................... 124 1,145 --
Class B............................... 2,561 2,054 --
Class G............................... 612,887 557,660 159,770
Pricing and bookkeeping fees (Note 4).. 114,771 131,868 64,083
Trustees' fees (Note 4)................ 7,068 17,592 5,034
Transfer agent fee (Note 4):
Class A............................... 175 135 --
Class B............................... 461 415 --
Class G............................... 230,217 353,268 79,778
Class T............................... 424,576 764,198 370,644
Class Z............................... 455,684 560,518 118,704
Reports to shareholders................ 359,227 623,576 226,943
Registration fee....................... 40,793 43,960 27,863
Miscellaneous.......................... 71,676 112,423 51,663
---------------- ------------- ------------
Total expenses before
reimbursement/waiver................ 7,852,075 14,448,806 4,816,768
---------------- ------------- ------------
Less: reimbursement/waiver (Note 4).... (140,232) (657,480) (6,000)
---------------- ------------- ------------
Total expenses net of
reimbursement/waiver................ 7,711,843 13,791,326 4,810,768
---------------- ------------- ------------
NET INVESTMENT INCOME (LOSS)............ 9,550,438 1,842,652 (831,035)
---------------- ------------- ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (NOTE 2):
Net realized gain (loss) on
investments sold...................... (26,364,880) (95,984,198) (68,065,195)
Net realized loss on forward foreign
currency contracts, foreign currency
transactions and futures contracts.... -- -- --
Net change in unrealized appreciation
(depreciation) on investments,
foreign currency and forward foreign
currency contracts.................... (54,121,169) (145,463,165) (16,740,050)
---------------- ------------- ------------
NET REALIZED AND UNREALIZED LOSS ON
INVESTMENTS............................. (80,486,049) (241,447,363) (84,805,245)
---------------- ------------- ------------
NET DECREASE IN NET ASSETS RESULTING
FROM OPERATIONS......................... $(70,935,611) $(239,604,711) $(85,636,280)
================ ============= ============
See Notes to Financial Statements.
62
COLUMBIA COLUMBIA COLUMBIA
INTERNATIONAL LARGE CAP CORE COLUMBIA SMALL COMPANY
EQUITY FUND FUND SMALL CAP FUND EQUITY FUND
- ------------- -------------- -------------- -------------
$ 181,256 $ 630,439 $ 1,182,718 $ 163,656
9,002,056 10,561,404 5,683,538 923,215
4,475 625 114,941 171,769
(1,030,095) (41,400) (8,662) (2,192)
- ------------- -------------- -------------- -------------
8,157,692 11,151,068 6,972,535 1,256,448
- ------------- -------------- -------------- -------------
4,760,395 5,469,675 4,740,793 2,956,401
352,551 479,056 415,406 256,803
559,083 34,804 39,991 78,739
648 257 604 --
19,100 129,541 23,538 40,544
151,816 666,709 316,465 201,135
24 95 426 --
1,948 772 1,813 --
41,966 289,755 54,197 90,986
128,309 98,133 105,419 70,002
6,476 9,654 8,015 5,411
78 145 281 --
232 150 589 --
57,281 116,922 25,898 65,483
257,270 445,673 247,187 251,712
369,459 485,884 134,393 417,854
150,673 303,960 159,631 136,755
58,659 40,796 51,681 33,163
59,335 78,999 69,397 52,188
- ------------- -------------- -------------- -------------
6,975,303 8,650,980 6,395,724 4,657,176
- ------------- -------------- -------------- -------------
(1,549,794) (173,028) (71,947) (57,959)
- ------------- -------------- -------------- -------------
5,425,509 8,477,952 6,323,777 4,599,217
- ------------- -------------- -------------- -------------
2,732,183 2,673,116 648,758 (3,342,769)
- ------------- -------------- -------------- -------------
(218,616,947) (2,843,956) 37,781,019 (93,471,017)
3,141,555 -- -- --
143,822,027 (132,810,615) (69,887,913) (2,618,304)
- ------------- -------------- -------------- -------------
(71,653,365) (135,654,571) (32,106,894) (96,089,321)
- ------------- -------------- -------------- -------------
$ (68,921,182) $(132,981,455) $(31,458,136) $(99,432,090)
============= ============== ============== =============
See Notes to Financial Statements.
63
[GRAPHIC]
STATEMENTS OF CHANGES IN NET ASSETS
COLUMBIA ASSET ALLOCATION FUND
-------------------------------------------
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, OCTOBER 31, OCTOBER 31,
2003 (A) 2002 2001
------------- ------------- -------------
NET ASSETS AT BEGINNING OF PERIOD................. $435,590,206 $ 626,967,716 $ 792,894,391
------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS:
Net investment income (loss)..................... 8,020,538 9,550,438 13,903,330
Net realized gain (loss) on investments sold,
futures contracts and foreign currency
transactions.................................... (10,461,088) (26,364,880) 1,779,786
Net change in unrealized
appreciation/depreciation of investments,
futures contracts and foreign currency
translations.................................... 46,417,019 (54,121,169) (131,821,300)
------------- ------------- -------------
Net increase (decrease) in net assets resulting
from operations................................. 43,976,469 (70,935,611) (116,138,184)
------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Class A......................................... (4,595) (817) (2,052)
Class B......................................... (9,663) (3,249) (6,871)
Class C......................................... (640) -- --
Class G......................................... (666,378) (903,651) (1,476,505)
Class T......................................... (3,230,558) (4,182,650) (6,945,190)
Class Z......................................... (4,391,025) (3,849,053) (6,073,932)
BKB Shares...................................... -- -- (396,225)
Net realized gain on investments:
Class A......................................... -- -- (5,350)
Class B......................................... -- -- (20,803)
Class G......................................... -- -- (4,250,364)
Class T......................................... -- -- (14,552,577)
Class Z......................................... -- -- (11,508,401)
BKB Shares...................................... -- -- (909,701)
------------- ------------- -------------
Total distributions........................... (8,302,859) (8,939,420) (46,147,971)
------------- ------------- -------------
Net increase (decrease) in net assets from share
transactions (b)................................ (3,427,997) (111,502,479) (3,640,520)
------------- ------------- -------------
Net increase (decrease) in net assets............ 32,245,613 (191,377,510) (165,926,675)
------------- ------------- -------------
NET ASSETS AT END OF PERIOD....................... $467,835,819 $ 435,590,206 $ 626,967,716
============= ============= =============
Undistributed (overdistributed) net investment
income........................................... $ 821,590 $ 1,115,554 $ (15,900)
============= ============= =============
- -------------------
(a) The Funds have changed their fiscal year end from October 31 to September
30.
(b) For details on share transactions by class, see Statements of Changes in
Net Assets - Capital Stock Activity on pages 70-71.
See Notes to Financial Statements.
64
COLUMBIA LARGE CAP GROWTH FUND COLUMBIA DISCIPLINED VALUE FUND
- ---------------------------------------------- ----------------------------------------
PERIOD ENDED YEAR ENDED YEAR ENDED PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, OCTOBER 31, OCTOBER 31, SEPTEMBER 30, OCTOBER 31, OCTOBER 31,
2003 (A) 2002 2001 2003 (A) 2002 2001
- -------------- -------------- -------------- ------------- ------------ ------------
$1,002,912,988 $1,285,373,219 $1,969,754,905 $307,743,416 $358,212,152 $422,254,399
- -------------- -------------- -------------- ------------- ------------ ------------
831,687 1,842,652 (1,397,342) 1,773,200 (831,035) (282,497)
(33,599,244) (95,984,198) (46,108,270) 3,691,251 (68,065,195) 13,619,668
118,125,297 (145,463,165) (532,258,353) 41,060,980 (16,740,050) (54,919,433)
- -------------- -------------- -------------- ------------- ------------ ------------
85,357,740 (239,604,711) (579,763,965) 46,525,431 (85,636,280) (41,582,262)
- -------------- -------------- -------------- ------------- ------------ ------------
(123) -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
(2,326,221) -- -- -- -- --
-- -- -- -- -- --
-- -- (15,978) -- -- --
-- -- (51,114) -- -- --
-- -- (15,375,783) -- (732,810) (5,160,776)
-- -- (63,514,294) -- (4,986,255) (37,734,664)
-- -- (138,966,079) -- (4,800,214) (27,498,418)
-- -- -- -- -- --
- -------------- -------------- -------------- ------------- ------------ ------------
(2,326,344) -- (217,923,248) -- (10,519,279) (70,393,858)
- -------------- -------------- -------------- ------------- ------------ ------------
(121,172,860) (42,855,520) 113,305,527 10,199,956 45,686,823 47,933,873
- -------------- -------------- -------------- ------------- ------------ ------------
(38,141,464) (282,460,231) (684,381,686) 56,725,387 (50,468,736) (64,042,247)
- -------------- -------------- -------------- ------------- ------------ ------------
$ 964,771,524 $1,002,912,988 $1,285,373,219 $364,468,803 $307,743,416 $358,212,152
============== ============== ============== ============= ============ ============
$ 312,712 $ 1,807,369 $ (35,363) $ 1,766,812 $ (8,463) $ (12,047)
============== ============== ============== ============= ============ ============
See Notes to Financial Statements.
65
[GRAPHIC]
STATEMENTS OF CHANGES IN NET ASSETS
COLUMBIA INTERNATIONAL EQUITY FUND
--------------------------------------------
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, OCTOBER 31, OCTOBER 31,
2003 (A) 2002 2001
------------- ------------- --------------
NET ASSETS AT BEGINNING OF PERIOD................. $422,189,259 $ 597,731,521 $1,067,506,793
------------- ------------- --------------
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS:
Net investment income............................ 3,710,010 2,732,183 3,879,012
Net realized gain (loss) on investments sold,
futures contracts and foreign currency
transactions.................................... (36,657,573) (215,475,392) (98,430,135)
Net change in unrealized
appreciation/depreciation of investments,
futures contracts and foreign currency
translations.................................... 95,365,607 143,822,027 (210,194,962)
------------- ------------- --------------
Net increase (decrease) in net assets resulting
from operations................................. 62,418,044 (68,921,182) (304,746,085)
------------- ------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Class A......................................... (309) (158) (260)
Class B......................................... (51) (3,271) (4,995)
Class C......................................... (1) -- --
Class G......................................... -- (46,997) (70,210)
Class T......................................... (276,228) (1,161,415) (1,684,989)
Class Z......................................... (4,085,135) (10,992,572) (16,835,007)
BKB Shares...................................... -- -- (286,675)
In excess of net investment income:
Class A......................................... -- -- --
Class T......................................... -- -- --
Class Z......................................... -- -- --
BKB Shares...................................... -- -- --
Net realized gain on investments:
Class A......................................... -- -- (1,655)
Class B......................................... -- -- (56,692)
Class C......................................... -- -- --
Class G......................................... -- -- (987,868)
Class T......................................... -- -- (12,341,722)
Class Z......................................... -- -- (100,878,940)
BKB Shares...................................... -- -- (1,816,794)
------------- ------------- --------------
Total distributions........................... (4,361,724) (12,204,413) (134,965,807)
------------- ------------- --------------
Net increase (decrease) in net assets from share
transactions (b)................................ (85,661,095) (94,416,667) (30,063,380)
------------- ------------- --------------
Net increase (decrease) in net assets............ (27,604,775) (175,542,262) (469,775,272)
------------- ------------- --------------
NET ASSETS AT END OF PERIOD....................... $394,584,484 $ 422,189,259 $ 597,731,521
============= ============= ==============
Undistributed (overdistributed) net investment
income........................................... $ 2,905,261 $ 4,356,476 $ 10,687,150
============= ============= ==============
- -------------------
(a) The Funds have changed their fiscal year end from October 31 to September
30.
(b) For details on share transactions by class, see Statements of Changes in
Net Assets - Capital Stock Activity on pages 72-73.
See Notes to Financial Statements.
66
COLUMBIA LARGE CAP CORE FUND COLUMBIA SMALL CAP FUND
- -------------------------------------------- ------------------------------------------
PERIOD ENDED YEAR ENDED YEAR ENDED PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, OCTOBER 31, OCTOBER 31, SEPTEMBER 30, OCTOBER 31, OCTOBER 31,
2003 (A) 2002 2001 2003 (A) 2002 2001
- ------------- ------------- -------------- -------------- ------------ ------------
$ 552,242,992 $ 768,866,020 $1,095,445,939 $ 610,202,895 $531,489,622 $423,356,265
- ------------- ------------- -------------- -------------- ------------ ------------
2,795,356 2,673,116 2,659,071 279,754 648,758 1,840,867
(16,524,653) (2,843,956) 39,931,530 36,226,379 37,781,019 53,226,917
50,850,870 (132,810,615) (189,931,026) 154,698,131 (69,887,913) (2,778,817)
- ------------- ------------- -------------- -------------- ------------ ------------
37,121,573 (132,981,455) (147,340,425) 191,204,264 (31,458,136) 52,288,967
- ------------- ------------- -------------- -------------- ------------ ------------
(17,426) (64) (315) -- -- (513)
(86) -- -- -- -- --
(41) -- -- -- -- --
(34,472) -- -- -- -- --
(811,898) (264,222) (235,448) -- -- (84,064)
(2,057,027) (2,074,328) (2,181,328) (450,747) (445,097) (2,033,130)
-- -- (448,110) -- -- --
-- -- (1) -- -- --
-- -- (394) -- -- --
-- -- (3,648) -- -- --
-- -- (749) -- -- --
-- (2,049) (12,164) (23,427) (12,287) (24,661)
-- (3,781) (10,153) (27,700) (17,051) (22,464)
-- -- -- (2,462) -- --
-- (1,681,983) (4,830,743) (479,909) (532,460) (380,522)
-- (8,851,728) (16,777,149) (5,982,965) (9,651,542) (11,275,912)
-- (15,146,836) (51,792,877) (25,553,703) (37,414,810) (43,697,192)
-- -- (10,483,566) -- -- --
- ------------- ------------- -------------- -------------- ------------ ------------
(2,920,950) (28,024,991) (86,776,645) (32,520,913) (48,073,247) (57,518,458)
- ------------- ------------- -------------- -------------- ------------ ------------
(171,845,720) (55,616,582) (92,462,849) 246,841,891 158,244,656 113,362,848
- ------------- ------------- -------------- -------------- ------------ ------------
(137,645,097) (216,623,028) (326,579,919) 405,525,242 78,713,273 108,133,357
- ------------- ------------- -------------- -------------- ------------ ------------
$ 414,597,895 $ 552,242,992 $ 768,866,020 $1,015,728,137 $610,202,895 $531,489,622
============= ============= ============== ============== ============ ============
$ 193,079 $ 319,232 $ (14,776) $ 214,302 $ 80,108 $ 136,358
============= ============= ============== ============== ============ ============
See Notes to Financial Statements.
67
[GRAPHIC]
STATEMENTS OF CHANGES IN NET ASSETS
COLUMBIA SMALL COMPANY EQUITY FUND
-------------------------------------------
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, OCTOBER 31, OCTOBER 31,
2003 (A) 2002 2001
------------- ------------- -------------
NET ASSETS AT BEGINNING OF PERIOD................. $284,062,086 $ 417,936,684 $ 566,942,273
------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS:
Net investment loss.............................. (3,035,547) (3,342,769) (3,141,421)
Net realized loss on investments sold............ (200,156) (93,471,017) (7,837,951)
Net change in unrealized
appreciation/depreciation of investments........ 77,738,196 (2,618,304) (74,616,004)
------------- ------------- -------------
Net increase (decrease) in net assets resulting
from operations................................. 74,502,493 (99,432,090) (85,595,376)
------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net realized gain on investments:
Class G......................................... -- -- (3,049,295)
Class T......................................... -- -- (17,106,422)
Class Z......................................... -- -- (63,711,563)
In excess of net realized gains:
Class G......................................... -- -- (77)
Class T......................................... -- -- (430)
Class Z......................................... -- -- (1,604)
------------- ------------- -------------
Total distributions........................... -- -- (83,869,391)
------------- ------------- -------------
Net increase (decrease) in net assets from share
transactions (b)................................ 9,112,934 (34,442,508) 20,459,178
------------- ------------- -------------
Net increase (decrease) in net assets............ 83,615,427 (133,874,598) (149,005,589)
------------- ------------- -------------
NET ASSETS AT END OF PERIOD....................... $367,677,513 $ 284,062,086 $ 417,936,684
============= ============= =============
Accumulated net investment loss................... $ (8,888) $ (7,647) $ (8,638)
============= ============= =============
- -------------------
(a) The Funds have changed their fiscal year end from October 31 to September
30.
(b) For details on share transactions by class, see Statements of Changes in
Net Assets - Capital Stock Activity on page 74.
See Notes to Financial Statements.
68
-----------------------------------------------------------------------------
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69
STATEMENTS OF CHANGES IN NET ASSETS -- CAPITAL STOCK ACTIVITY
COLUMBIA ASSET ALLOCATION FUND (A)
-------------------------------------------
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, OCTOBER 31, OCTOBER 31,
2003 (B) 2002 2001
------------- ------------- -------------
SHARE TRANSACTIONS:
Class A:
Net proceeds from sales of shares.............................................. $ 1,246,966 $ 1,942 $ --
Issued to shareholders in reinvestment of dividends............................ 4,381 643 7,161
Cost of shares repurchased..................................................... (105,877) (12,593) (112,229)
------------- ------------- -------------
Net increase (decrease)...................................................... $ 1,145,470 $ (10,008) $ (105,068)
------------- ------------- -------------
Class B:
Net proceeds from sales of shares.............................................. $ 2,371,280 $ 2,002 $ 14,315
Issued to shareholders in reinvestment of dividends............................ 8,683 3,147 25,671
Cost of shares repurchased..................................................... (219,790) (69,201) (69,787)
------------- ------------- -------------
Net increase (decrease)...................................................... $ 2,160,173 $ (64,052) $ (29,801)
------------- ------------- -------------
Class C:
Net proceeds from sales of shares.............................................. $ 208,308 $ -- $ --
Issued to shareholders in reinvestment of dividends............................ 520 -- --
Cost of shares repurchased..................................................... (32,872) -- --
------------- ------------- -------------
Net increase................................................................. $ 175,956 $ -- $ --
------------- ------------- -------------
Class G:
Net proceeds from sales of shares.............................................. $ 796,644 $ 4,078,242 $ 20,309,535
Issued in connection with acquisition (Note 1)................................. -- -- 21,567,910
Issued to shareholders in reinvestment of dividends............................ 643,841 882,934 5,623,687
Cost of shares repurchased..................................................... (23,798,027) (24,005,581) (23,960,181)
------------- ------------- -------------
Net increase (decrease)...................................................... $ (22,357,542) $ (19,044,405) $ 23,540,951
------------- ------------- -------------
Class T:
Net proceeds from sales of shares.............................................. $ 12,980,478 $ 23,448,832 $ 48,027,653
Issued in connection with acquisition (Note 1)................................. -- -- 6,080,855
Issued due to conversion of BKB Shares into Retail A Shares.................... -- -- 19,482,815
Issued to shareholders in reinvestment of dividends............................ 3,138,892 4,060,095 21,107,073
Cost of shares repurchased..................................................... (39,894,205) (82,540,616) (100,598,755)
------------- ------------- -------------
Net increase (decrease)...................................................... $ (23,774,835) $ (55,031,689) $ (5,900,359)
------------- ------------- -------------
Class Z:
Net proceeds from sales of shares.............................................. $ 21,698,761 $ 38,817,973 $ 50,389,058
Issued in connection with acquisition (Note 1)................................. 127,523,327 -- 16,819,647
Issued to shareholders in reinvestment of dividends............................ 3,688,536 3,482,666 16,290,648
Cost of shares repurchased..................................................... (113,687,843) (79,652,964) (84,341,533)
------------- ------------- -------------
Net increase (decrease)...................................................... $ 39,222,781 $ (37,352,325) $ (842,180)
------------- ------------- -------------
BKB:
Net proceeds from sales of shares.............................................. $ -- $ -- $ 489,766
Issued to shareholders in reinvestment of dividends............................ -- -- 1,273,752
Redeemed from shareholders due to conversion of BKB shares into Retail A shares -- -- (19,482,815)
Cost of shares repurchased..................................................... -- -- (2,584,766)
------------- ------------- -------------
Net decrease................................................................. $ -- $ -- $ (20,304,063)
------------- ------------- -------------
Total share transactions....................................................... $ (3,427,997) $(111,502,479) $ (3,640,520)
------------- ------------- -------------
- -------------------
(a) The Funds have changed their fiscal year end from October 31 to September
30.
(b) Effective November 18, 2002, the Galaxy Asset Allocation Fund Prime A,
Prime B, Retail A and Trust shares were reorganized as Liberty Asset
Allocation Fund Class A, Class B, Class G, Class T and Class Z shares,
respectively. Subsequently, the Fund began offering Class C shares.
Effective October 13, 2003, the Liberty Asset Allocation Fund was renamed
Columbia Asset Allocation Fund.
(c) Effective November 18, 2002, the Galaxy Equity Growth Fund Prime A, Prime
B, Retail B, Retail A and Trust shares were reorganized as Liberty Equity
Growth Fund Class A, Class B, Class G, Class T and Class Z shares,
respectively. Subsequently, the Fund began offering Class C shares.
Effective October 13, 2003, the Liberty Equity Growth Fund was renamed
Columbia Large Cap Growth Fund.
(d) Effective November 25, 2002, the Galaxy Equity Value Fund Retail B, Retail
A and Trust shares were reorganized as Liberty Equity Value Fund Class G,
Class T and Class Z shares, respectively. Subsequently, the Fund began
offering Class A, Class B and Class C shares. Effective October 13, 2003,
the Liberty Equity Value Fund was renamed Columbia Disciplined Value Fund.
See Notes to Financial Statements.
70
COLUMBIA LARGE CAP GROWTH FUND (A) COLUMBIA DISCIPLINED VALUE FUND (A)
- ------------------------------------------- -----------------------------------------
PERIOD ENDED YEAR ENDED YEAR ENDED PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, OCTOBER 31, OCTOBER 31, SEPTEMBER 30, OCTOBER 31, OCTOBER 31,
2003 (C) 2002 2001 2003 (D) 2002 2001
- ------------- ------------- ------------- ------------- ------------ ------------
$ 2,227,933 $ 14,224 $ 892,428 $ 2,488,497 $ -- $ --
122 -- 15,978 -- -- --
(418,221) (561,125) (137,373) (1,646,171) -- --
- ------------- ------------- ------------- ------------- ------------ ------------
$ 1,809,834 $ (546,901) $ 771,033 $ 842,326 $ -- $ --
- ------------- ------------- ------------- ------------- ------------ ------------
$ 1,201,742 $ 1,377 $ 3,500 $ 490,115 $ -- $ --
-- -- 45,459 -- -- --
(445,675) (52,491) -- (170,281) -- --
- ------------- ------------- ------------- ------------- ------------ ------------
$ 756,067 $ (51,114) $ 48,959 $ 319,834 $ -- $ --
- ------------- ------------- ------------- ------------- ------------ ------------
$ 875,203 $ -- $ -- $ 342,474 $ -- $ --
-- -- -- -- -- --
(386,398) -- -- (326,333) -- --
- ------------- ------------- ------------- ------------- ------------ ------------
$ 488,805 $ -- $ -- $ 16,141 $ -- $ --
- ------------- ------------- ------------- ------------- ------------ ------------
$ 2,112,439 $ 7,699,620 $ 30,066,768 $ 227,695 $ 1,530,736 $ 4,071,006
-- -- -- -- -- --
-- -- 15,235,587 -- 730,490 5,141,394
(16,470,137) (18,399,523) (26,227,706) (7,910,003) (5,357,577) (5,623,251)
- ------------- ------------- ------------- ------------- ------------ ------------
$ (14,357,698) $ (10,699,903) $ 19,074,649 $ (7,682,308) $ (3,096,351) $ 3,589,149
- ------------- ------------- ------------- ------------- ------------ ------------
$ 26,623,304 $ 62,313,532 $ 224,465,114 $ 7,479,651 $ 18,997,313 $ 37,099,468
-- -- -- -- -- --
-- -- -- -- -- --
186 -- 62,411,946 -- 4,923,064 37,198,253
(50,338,825) (109,994,675) (291,984,912) (19,161,516) (42,048,389) (61,581,115)
- ------------- ------------- ------------- ------------- ------------ ------------
$ (23,715,335) $ (47,681,143) $ (5,107,852) $(11,681,865) $(18,128,012) $ 12,716,606
- ------------- ------------- ------------- ------------- ------------ ------------
$ 145,302,438 $ 208,441,606 $ 205,814,820 $ 85,258,557 $103,359,201 $ 39,946,927
-- -- -- -- -- --
1,331,752 -- 113,017,574 -- 3,849,192 21,402,198
(232,788,723) (192,318,065) (220,313,656) (56,872,729) (40,297,207) (29,721,007)
- ------------- ------------- ------------- ------------- ------------ ------------
$ (86,154,533) $ 16,123,541 $ 98,518,738 $ 28,385,828 $ 66,911,186 $ 31,628,118
- ------------- ------------- ------------- ------------- ------------ ------------
$ -- $ -- $ -- $ -- $ -- $ --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
- ------------- ------------- ------------- ------------- ------------ ------------
$ -- $ -- $ -- $ -- $ -- $ --
- ------------- ------------- ------------- ------------- ------------ ------------
$(121,172,860) $ (42,855,520) $ 113,305,527 $ 10,199,956 $ 45,686,823 $ 47,933,873
- ------------- ------------- ------------- ------------- ------------ ------------
See Notes to Financial Statements.
71
STATEMENTS OF CHANGES IN NET ASSETS -- CAPITAL STOCK ACTIVITY (CONTINUED)
COLUMBIA INTERNATIONAL EQUITY FUND (A)
-------------------------------------------
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, OCTOBER 31, OCTOBER 31,
2003 (B) 2002 2001
------------- ------------- -------------
SHARE TRANSACTIONS:
Class A:
Net proceeds from sales of shares.............................................. $ 3,760,494 $ 500 $ --
Issued in connection with acquisition (Note 1)................................. -- -- --
Issued to shareholders in reinvestment of dividends............................ 80 158 1,915
Cost of shares repurchased..................................................... (3,639,588) (773) --
------------- ------------- -------------
Net increase (decrease)...................................................... $ 120,986 $ (115) $ 1,915
------------- ------------- -------------
Class B:
Net proceeds from sales of shares.............................................. $ 632,499 $ -- $ 2,100
Issued to shareholders in reinvestment of dividends............................ 47 904 16,937
Cost of shares repurchased..................................................... (459,615) (169,123) (13,493)
------------- ------------- -------------
Net increase (decrease)...................................................... $ 172,931 $ (168,219) $ 5,544
------------- ------------- -------------
Class C:
Net proceeds from sales of shares.............................................. $ 1,296,905 $ -- $ --
Issued to shareholders in reinvestment of dividends............................ -- -- --
Cost of shares repurchased..................................................... (1,299,758) -- --
------------- ------------- -------------
Net increase (decrease)...................................................... $ (2,853) $ -- $ --
------------- ------------- -------------
Class G:
Net proceeds from sales of shares.............................................. $ 69,394 $ 335,436 $ 1,629,545
Issued in connection with acquisition (Note 1)................................. -- -- 2,207,507
Issued to shareholders in reinvestment of dividends............................ -- 46,346 1,052,540
Cost of shares repurchased..................................................... (731,060) (1,400,567) (2,081,802)
------------- ------------- -------------
Net increase (decrease)...................................................... $ (661,666) $ (1,018,785) $ 2,807,790
------------- ------------- -------------
Class T:
Net proceeds from sales of shares.............................................. $ 60,584,311 $ 393,268,992 $ 457,655,718
Issued in connection with acquisition (Note 1)................................. -- -- 564,146
Issued due to conversion of BKB Shares into Retail A Shares.................... -- -- 9,944,253
Issued to shareholders in reinvestment of dividends............................ 267,640 1,067,845 13,640,281
Cost of shares repurchased..................................................... (68,028,146) (410,600,585) (491,953,070)
------------- ------------- -------------
Net increase (decrease)...................................................... $ (7,176,195) $ (16,263,748) $ (10,148,672)
------------- ------------- -------------
Class Z:
Net proceeds from sales of shares.............................................. $ 159,741,174 $ 559,110,349 $ 794,687,296
Issued in connection with acquisition (Note 1)................................. -- -- 23,332,872
Issued to shareholders in reinvestment of dividends............................ 1,158,531 3,916,708 77,315,445
Cost of shares repurchased..................................................... (239,061,805) (639,992,857) (897,181,775)
Redemption fees................................................................ 47,802 -- --
------------- ------------- -------------
Net increase (decrease)...................................................... $ (78,114,298) $ (76,965,800) $ (1,846,162)
------------- ------------- -------------
BKB:
Net proceeds from sales of shares.............................................. $ -- $ -- $ 41,608,701
Issued to shareholders in reinvestment of dividends............................ -- -- 1,943,229
Redeemed from shareholders due to conversion of BKB shares into Retail A shares -- -- (9,944,253)
Cost of shares repurchased..................................................... -- -- (54,491,472)
------------- ------------- -------------
Net decrease................................................................. $ -- $ -- $ (20,883,795)
------------- ------------- -------------
Total share transactions....................................................... $ (85,661,095) $ (94,416,667) $ (30,063,380)
------------- ------------- -------------
- -------------------
(a) The Funds have changed their fiscal year end from October 31 to September
30.
(b) Effective November 18, 2002, the Galaxy International Equity Fund Prime A,
Prime B, Retail B, Retail A and Trust shares were reorganized as Liberty
International Equity Fund Class A, Class B, Class G, Class T and Class Z
shares, respectively. Subsequently, the Fund began offering Class C shares.
Effective October 13, 2003, the Liberty International Equity Fund was
renamed Columbia International Equity Fund.
(c) Effective December 9, 2002, the Galaxy Large Cap Value Fund Prime A, Prime
B, Retail B, Retail A and Trust shares were reorganized as Liberty Large
Cap Core Fund (formerly known as Galaxy Growth & Income Fund) Class A,
Class B, Class G, Class T and Class Z shares, respectively. Subsequently,
the Fund began offering Class C shares. Effective October 13, 2003, the
Liberty Large Cap Core Fund was renamed Columbia Large Cap Core Fund.
(d) Effective November 18, 2002, the Galaxy Small Cap Value Fund Prime A, Prime
B, Retail B, Retail A and Trust shares were reorganized as Liberty Small
Cap Fund Class A, Class B, Class G, Class T and Class Z shares,
respectively. Subsequently, the Fund began offering Class C shares.
Effective October 13, 2003, the Liberty Small Cap Fund was renamed Columbia
Small Cap Fund.
See Notes to Financial Statements.
72
COLUMBIA LARGE CAP CORE FUND (A) COLUMBIA SMALL CAP FUND (A)
- ------------------------------------------- ------------------------------------------
PERIOD ENDED YEAR ENDED YEAR ENDED PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, OCTOBER 31, OCTOBER 31, SEPTEMBER 30, OCTOBER 31, OCTOBER 31,
2003 (C) 2002 2001 2003 (D) 2002 2001
- ------------- ------------- ------------- ------------- ------------- ------------
$ 1,379,676 $ 128 $ 7,957 $ 58,433,179 $ 157,443 $ 9,047
6,454,752 -- -- -- -- --
16,670 466 8,801 21,912 9,710 21,966
(794,588) (40,839) (86,157) (5,358,656) (105,884) (48,965)
- ------------- ------------- ------------- ------------- ------------- ------------
$ 7,056,510 $ (40,245) $ (69,399) $ 53,096,435 $ 61,269 $ (17,952)
- ------------- ------------- ------------- ------------- ------------- ------------
$ 1,730,382 $ -- $ 2,000 $ 10,430,015 $ 132,259 $ 53,271
86 3,106 8,178 26,282 17,051 22,464
(85,754) (31,132) -- (373,156) (33,156) (46,856)
- ------------- ------------- ------------- ------------- ------------- ------------
$ 1,644,714 $ (28,026) $ 10,178 $ 10,083,141 $ 116,154 $ 28,879
- ------------- ------------- ------------- ------------- ------------- ------------
$ 332,435 $ -- $ -- $ 12,200,290 $ -- $ --
41 -- -- 2,361 -- --
(121,881) -- -- (147,824) -- --
- ------------- ------------- ------------- ------------- ------------- ------------
$ 210,595 $ -- $ -- $ 12,054,827 $ -- $ --
- ------------- ------------- ------------- ------------- ------------- ------------
$ 449,389 $ 1,998,005 $ 7,153,100 $ 350,209 $ 6,235,998 $ 2,851,277
12,420,359 -- -- -- -- --
30,905 1,654,365 4,758,948 465,333 526,290 380,405
(18,640,817) (10,728,602) (10,850,048) (1,269,029) (1,509,331) (684,865)
- ------------- ------------- ------------- ------------- ------------- ------------
$ (5,740,164) $ (7,076,232) $ 1,062,000 $ (453,487) $ 5,252,957 $ 2,546,817
- ------------- ------------- ------------- ------------- ------------- ------------
$ 15,776,849 $ 33,029,033 $ 35,131,721 $ 28,267,215 $ 92,202,077 $ 53,311,823
-- -- -- -- -- --
-- -- 118,837,612 -- -- --
836,757 8,936,751 16,812,314 5,680,741 9,395,064 11,293,714
(29,879,271) (70,008,875) (66,366,743) (38,209,114) (70,792,166) (51,058,276)
- ------------- ------------- ------------- ------------- ------------- ------------
$ (13,265,665) $ (28,043,091) $ 104,414,904 $ (4,261,158) $ 30,804,975 $ 13,547,261
- ------------- ------------- ------------- ------------- ------------- ------------
$ 34,099,883 $ 100,632,122 $ 55,468,386 $ 320,832,302 $ 283,345,487 $143,056,098
69,340,646 -- -- -- -- --
913,137 15,587,396 50,443,293 18,622,287 28,972,951 36,272,339
(266,105,376) (136,648,506) (182,356,143) (163,132,456) (190,309,137) (82,070,594)
-- -- -- -- -- --
- ------------- ------------- ------------- ------------- ------------- ------------
$(161,751,710) $ (20,428,988) $ (76,444,464) $ 176,322,133 $ 122,009,301 $ 97,257,843
- ------------- ------------- ------------- ------------- ------------- ------------
$ -- $ -- $ 3,961,644 $ -- $ -- $ --
-- -- 10,554,032 -- -- --
-- -- (118,837,612) -- -- --
-- -- (17,114,132) -- -- --
- ------------- ------------- ------------- ------------- ------------- ------------
$ -- $ -- $(121,436,068) $ -- $ -- $ --
- ------------- ------------- ------------- ------------- ------------- ------------
$(171,845,720) $ (55,616,582) $ (92,462,849) $ 246,841,891 $ 158,244,656 $113,362,848
- ------------- ------------- ------------- ------------- ------------- ------------
See Notes to Financial Statements.
73
STATEMENTS OF CHANGES IN NET ASSETS -- CAPITAL STOCK ACTIVITY (CONTINUED)
COLUMBIA SMALL COMPANY EQUITY FUND (A)
-------------------------------------------
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, OCTOBER 31, OCTOBER 31,
2003 (B) 2002 2001
------------- ------------- -------------
SHARE TRANSACTIONS:
Class A:
Net proceeds from sales of shares.................. $ 619,478 $ -- $ --
Cost of shares repurchased......................... (248,570) -- --
------------- ------------- -------------
Net increase..................................... $ 370,908 $ -- $ --
------------- ------------- -------------
Class B:
Net proceeds from sales of shares.................. $ 207,848 $ -- $ --
Cost of shares repurchased......................... (5,872) -- --
------------- ------------- -------------
Net increase..................................... $ 201,976 $ -- $ --
------------- ------------- -------------
Class C:
Net proceeds from sales of shares.................. $ 187,755 $ -- $ --
Cost of shares repurchased......................... (127,847) -- --
------------- ------------- -------------
Net increase..................................... $ 59,908 $ -- $ --
------------- ------------- -------------
Class G:
Net proceeds from sales of shares.................. $ 176,262 $ 5,343,587 $ 7,421,851
Issued to shareholders in reinvestment of dividends -- -- 3,020,198
Cost of shares repurchased......................... (4,494,902) (7,654,692) (7,858,471)
------------- ------------- -------------
Net increase (decrease).......................... $ (4,318,640) $ (2,311,105) $ 2,583,578
------------- ------------- -------------
Class T:
Net proceeds from sales of shares.................. $ 19,278,621 $ 103,731,584 $ 689,682,230
Issued to shareholders in reinvestment of dividends -- -- 16,837,169
Cost of shares repurchased......................... (23,497,418) (111,618,506) (715,283,845)
------------- ------------- -------------
Net decrease..................................... $ (4,218,797) $ (7,886,922) $ (8,764,446)
------------- ------------- -------------
Class Z:
Net proceeds from sales of shares.................. $107,075,672 $ 81,621,271 $ 143,277,283
Issued to shareholders in reinvestment of dividends -- -- 45,358,533
Cost of shares repurchased......................... (90,058,093) (105,865,752) (161,995,770)
------------- ------------- -------------
Net increase (decrease).......................... $ 17,017,579 $ (24,244,481) $ 26,640,046
------------- ------------- -------------
Total share transactions........................... $ 9,112,934 $ (34,442,508) $ 20,459,178
------------- ------------- -------------
- ---------
(a) The Funds have changed their fiscal year end from October 31 to September
30.
(b) Effective November 18, 2002, the Galaxy Small Company Equity Fund Retail B,
Retail A and Trust shares were reorganized as Liberty Small Company Equity
Fund Class G, Class T and Class Z shares, respectively. Subsequently, the
Fund began offering Class A, Class B and Class C shares. Effective October
13, 2003, the Liberty Small Company Equity Fund was renamed Columbia Small
Company Equity Fund.
See Notes to Financial Statements.
74
-----------------------------------------------------------------------------
This page left blank intentionally
75
STATEMENTS OF CHANGES IN NET ASSETS -- CAPITAL STOCK ACTIVITY (CONTINUED)
COLUMBIA ASSET ALLOCATION FUND (A)
---------------------------------------
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, OCTOBER 31, OCTOBER 31,
2003 (B) 2002 2001
------------- ----------- -----------
OTHER INFORMATION:
SHARE TRANSACTIONS:
Class A:
Sold........................................................................... 90,623 153 --
Issued to shareholders in reinvestment of dividends............................ 313 46 421
Repurchased.................................................................... (7,781) (877) (6,350)
------------- ----------- -----------
Net increase (decrease) in shares outstanding................................ 83,155 (678) (5,929)
------------- ----------- -----------
Class B:
Sold........................................................................... 175,332 132 880
Issued to shareholders in reinvestment of dividends............................ 641 226 1,517
Repurchased.................................................................... (16,090) (4,930) (4,371)
------------- ----------- -----------
Net increase (decrease) in shares outstanding................................ 159,883 (4,572) (1,974)
------------- ----------- -----------
Class C:
Sold........................................................................... 15,733 -- --
Issued to shareholders in reinvestment of dividends............................ 38 -- --
Repurchased.................................................................... (2,404) -- --
------------- ----------- -----------
Net increase in shares outstanding........................................... 13,367 -- --
------------- ----------- -----------
Class G:
Sold........................................................................... 60,925 280,333 1,211,823
Issued in connection with acquisition.......................................... -- -- 1,384,061
Issued to shareholders in reinvestment of dividends............................ 49,383 63,424 333,600
Repurchased.................................................................... (1,779,909) (1,754,424) (1,474,970)
------------- ----------- -----------
Net increase (decrease) in shares outstanding................................ (1,669,601) (1,410,667) 1,454,514
------------- ----------- -----------
Class T:
Sold........................................................................... 948,459 1,681,657 2,859,149
Issued in connection with acquisition.......................................... -- -- 389,256
Issued due to conversion of BKB Shares into Retail A Shares.................... -- -- 1,210,607
Issued to shareholders in reinvestment of dividends............................ 238,021 287,807 1,253,777
Repurchased.................................................................... (3,052,027) (5,963,835) (6,103,993)
------------- ----------- -----------
Net decrease in shares outstanding........................................... (1,865,547) (3,994,371) (391,204)
------------- ----------- -----------
Class Z:
Sold........................................................................... 1,650,315 2,688,275 3,043,101
Issued in connection with acquisition.......................................... 9,749,490 -- 1,077,072
Issued to shareholders in reinvestment of dividends............................ 279,463 246,822 969,770
Repurchased.................................................................... (8,860,695) (5,622,405) (5,157,418)
------------- ----------- -----------
Net increase (decrease) in shares outstanding................................ 2,818,573 (2,687,308) (67,475)
------------- ----------- -----------
BKB:
Sold........................................................................... -- -- 28,583
Issued to shareholders in reinvestment of dividends............................ -- -- 74,743
Redeemed from shareholders due to conversion of BKB shares into Retail A shares -- -- (1,210,607)
Repurchased.................................................................... -- -- (152,216)
------------- ----------- -----------
Net decrease................................................................. -- -- (1,259,497)
------------- ----------- -----------
- -------------------
(a) The Funds have changed their fiscal year end from October 31 to September
30.
(b) Effective November 25, 2002, the Galaxy Asset Allocation Fund Prime A,
Prime B, Retail B, Retail A and Trust shares were reorganized as Liberty
Asset Allocation Fund Class A, Class B, Class G, Class T and Class Z
shares, respectively. Subsequently, the Fund began offering Class C shares.
Effective October 13, 2003, the Liberty Asset Allocation Fund was renamed
Columbia Asset Allocation Fund.
(c) Effective November 18, 2002, the Galaxy Equity Growth Fund Prime A, Prime
B, Retail B, Retail A and Trust shares were reorganized as Liberty Equity
Growth Fund Class A, Class B, Class G, Class T and Class Z shares,
respectively. Subsequently, the Fund began offering Class C shares.
Effective October 13, 2003, the Liberty Equity Growth Fund was renamed
Columbia Large Cap Growth Fund.
(d) Effective November 25, 2002, the Galaxy Equity Value Fund Retail B, Retail
A and Trust shares were reorganized as Liberty Equity Value Fund Class G,
Class T and Class Z shares, respectively. Subsequently, the Fund began
offering Class A, Class B and Class C shares. Effective October 13, 2003,
the Liberty Equity Value Fund was renamed Columbia Disciplined Value Fund.
See Notes to Financial Statements.
76
COLUMBIA LARGE CAP GROWTH FUND (A) COLUMBIA DISCIPLINED VALUE FUND (A)
- --------------------------------------- ---------------------------------------
PERIOD ENDED YEAR ENDED YEAR ENDED PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, OCTOBER 31, OCTOBER 31, SEPTEMBER 30, OCTOBER 31, OCTOBER 31,
2003 (C) 2002 2001 2003 (D) 2002 2001
- ------------- ----------- ----------- ------------- ----------- -----------
127,594 675 34,627 245,472 -- --
8 -- 611 -- -- --
(23,849) (31,158) (5,651) (163,507) -- --
- ------------- ----------- ----------- ------------- ----------- -----------
103,753 (30,483) 29,587 81,965 -- --
- ------------- ----------- ----------- ------------- ----------- -----------
73,152 76 151 48,835 -- --
-- -- 1,764 -- -- --
(26,733) (2,768) -- (16,616) -- --
- ------------- ----------- ----------- ------------- ----------- -----------
46,419 (2,692) 1,915 32,219 -- --
- ------------- ----------- ----------- ------------- ----------- -----------
53,880 -- -- 34,288 -- --
-- -- -- -- -- --
(23,002) -- -- (32,040) -- --
- ------------- ----------- ----------- ------------- ----------- -----------
30,878 -- -- 2,248 -- --
- ------------- ----------- ----------- ------------- ----------- -----------
137,178 402,662 1,257,990 23,830 122,965 298,379
-- -- -- -- -- --
-- -- 606,518 -- 56,061 410,327
(1,043,026) (1,070,412) (1,126,099) (791,814) (485,678) (405,795)
- ------------- ----------- ----------- ------------- ----------- -----------
(905,848) (667,750) 738,409 (767,984) (306,652) 302,911
- ------------- ----------- ----------- ------------- ----------- -----------
1,601,558 3,309,526 10,011,248 712,384 1,461,025 2,642,352
-- -- -- -- -- --
-- -- -- -- -- --
12 -- 2,386,682 -- 365,484 2,894,804
(3,101,612) (5,906,627) (12,790,442) (1,921,056) (3,436,236) (4,389,281)
- ------------- ----------- ----------- ------------- ----------- -----------
(1,500,042) (2,597,101) (392,512) (1,208,672) (1,609,727) 1,147,875
- ------------- ----------- ----------- ------------- ----------- -----------
8,605,204 10,670,158 8,513,337 8,245,789 8,229,129 2,891,310
-- -- -- -- -- --
83,287 -- 4,275,798 -- 281,992 1,650,131
(14,044,860) (10,051,097) (9,063,571) (5,518,932) (3,316,907) (2,124,380)
- ------------- ----------- ----------- ------------- ----------- -----------
(5,356,369) 619,061 3,725,564 2,726,857 5,194,214 2,417,061
- ------------- ----------- ----------- ------------- ----------- -----------
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
- ------------- ----------- ----------- ------------- ----------- -----------
-- -- -- -- -- --
- ------------- ----------- ----------- ------------- ----------- -----------
77
STATEMENTS OF CHANGES IN NET ASSETS -- CAPITAL STOCK ACTIVITY (CONTINUED)
COLUMBIA INTERNATIONAL EQUITY FUND (A)
---------------------------------------
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, OCTOBER 31, OCTOBER 31,
2003 (B) 2002 2001
------------- ----------- -----------
OTHER INFORMATION:
SHARE TRANSACTIONS:
Class A:
Sold........................................................................... 365,782 43 --
Issued in connection with acquisition.......................................... -- -- --
Issued to shareholders in reinvestment of dividends............................ 9 14 118
Repurchased.................................................................... (341,913) (79) --
------------- ----------- -----------
Net increase (decrease) in shares outstanding................................ 23,878 (22) 118
------------- ----------- -----------
Class B:
Sold........................................................................... 63,174 -- 125
Issued to shareholders in reinvestment of dividends............................ 5 79 1,055
Repurchased.................................................................... (45,848) (19,410) (933)
------------- ----------- -----------
Net increase (decrease) in shares outstanding................................ 17,331 (19,331) 247
------------- ----------- -----------
Class C:
Sold........................................................................... 136,603 -- --
Issued to shareholders in reinvestment of dividends............................ -- -- --
Repurchased.................................................................... (136,000) -- --
------------- ----------- -----------
Net increase in shares outstanding........................................... 603 -- --
------------- ----------- -----------
Class G:
Sold........................................................................... 7,418 29,664 107,868
Issued in connection with acquisition.......................................... -- -- 176,305
Issued to shareholders in reinvestment of dividends............................ -- 4,075 65,833
Repurchased.................................................................... (77,285) (130,389) (147,402)
------------- ----------- -----------
Net increase (decrease) in shares outstanding................................ (69,867) (96,650) 202,604
------------- ----------- -----------
Class T:
Sold........................................................................... 6,604,035 36,599,906 32,169,655
Issued in connection with acquisition.......................................... -- -- 44,686
Issued due to conversion of BKB Shares into Retail A Shares.................... -- -- 751,652
Issued to shareholders in reinvestment of dividends............................ 29,476 93,635 846,508
Repurchased.................................................................... (7,380,277) (37,921,896) (34,113,006)
------------- ----------- -----------
Net increase (decrease) in shares outstanding................................ (746,766) (1,228,355) (300,505)
------------- ----------- -----------
Class Z:
Sold........................................................................... 16,739,214 51,501,696 54,591,893
Issued in connection with acquisition.......................................... -- -- 1,816,673
Issued to shareholders in reinvestment of dividends............................ 125,382 339,109 4,703,338
Repurchased.................................................................... (25,020,075) (58,357,513) (61,168,058)
------------- ----------- -----------
Net increase (decrease) in shares outstanding................................ (8,155,479) (6,516,708) (56,154)
------------- ----------- -----------
BKB:
Sold........................................................................... -- -- 2,516,461
Issued to shareholders in reinvestment of dividends............................ -- -- 118,723
Redeemed from shareholders due to conversion of BKB shares into Retail A shares -- -- (740,883)
Repurchased.................................................................... -- -- (3,203,149)
------------- ----------- -----------
Net decrease................................................................. -- -- (1,308,848)
------------- ----------- -----------
- -------------------
(a) The Funds have changed their fiscal year end from October 31 to September
30.
(b) Effective November 18, 2002, the Galaxy International Equity Fund Prime A,
Prime B, Retail B, Retail A and Trust shares were reorganized as Liberty
International Equity Fund Class A, Class B, Class G, Class T and Class Z
shares, respectively. Subsequently, the Fund began offering Class C shares.
Effective October 13, 2003, the Liberty International Equity Fund was
renamed Columbia International Equity Fund.
(c) Effective December 9, 2002, the Galaxy Large Cap Value Fund Prime A, Prime
B, Retail B, Retail A and Trust shares were reorganized as Liberty Large
Cap Core Fund (formerly known as Galaxy Growth & Income Fund) Class A,
Class B, Class G, Class T and Class Z shares, respectively. Subsequently,
the Fund began offering Class C shares. Effective October 13, 2003, the
Liberty Large Cap Core Fund was renamed Columbia Large Cap Core Fund.
(d) Effective November 18, 2002, the Galaxy Small Cap Value Fund Prime A, Prime
B, Retail B, Retail A and Trust shares were reorganized as Liberty Small
Cap Fund Class A, Class B, Class G, Class T and Class Z shares,
respectively. Subsequently, the Fund began offering Class C shares.
Effective October 13, 2003, the Liberty Small Cap Fund was renamed Columbia
Small Cap Fund.
See Notes to Financial Statements.
78
COLUMBIA LARGE CAP CORE FUND (A) COLUMBIA SMALL CAP FUND (A)
- --------------------------------------- ---------------------------------------
PERIOD ENDED YEAR ENDED YEAR ENDED PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, OCTOBER 31, OCTOBER 31, SEPTEMBER 30, OCTOBER 31, OCTOBER 31,
2003 (C) 2002 2001 2003 (D) 2002 2001
- ------------- ----------- ----------- ------------- ----------- -----------
126,227 10 559 4,098,552 11,215 651
621,521 -- -- -- -- --
1,676 35 606 1,737 683 1,735
(76,403) (3,221) (5,980) (360,646) (7,291) (3,583)
- ------------- ----------- ----------- ------------- ----------- -----------
673,021 (3,176) (4,815) 3,739,643 4,607 (1,197)
- ------------- ----------- ----------- ------------- ----------- -----------
162,123 -- 147 756,403 9,728 3,871
9 237 567 2,142 1,222 1,799
(8,016) (3,283) -- (27,618) (2,347) (3,282)
- ------------- ----------- ----------- ------------- ----------- -----------
154,116 (3,046) 714 730,927 8,603 2,388
- ------------- ----------- ----------- ------------- ----------- -----------
32,690 -- -- 869,296 -- --
4 -- -- 192 -- --
(12,351) -- -- (11,707) -- --
- ------------- ----------- ----------- ------------- ----------- -----------
20,343 -- -- 857,781 -- --
- ------------- ----------- ----------- ------------- ----------- -----------
44,266 162,505 499,029 28,276 429,423 202,735
1,226,272 -- -- -- -- --
3,352 126,869 331,865 38,236 38,027 30,628
(1,816,170) (973,850) (761,745) (99,176) (111,919) (49,611)
- ------------- ----------- ----------- ------------- ----------- -----------
(542,280) (684,476) 69,149 (32,664) 355,531 183,752
- ------------- ----------- ----------- ------------- ----------- -----------
1,495,379 2,708,325 2,417,059 2,163,625 6,479,808 3,777,423
-- -- -- -- -- --
-- -- 8,244,790 -- -- --
82,213 675,947 1,160,649 453,371 665,372 898,744
(2,878,020) (5,908,323) (4,642,681) (2,947,006) (5,121,259) (3,637,690)
- ------------- ----------- ----------- ------------- ----------- -----------
(1,300,428) (2,524,051) 7,179,817 (330,010) 2,023,921 1,038,477
- ------------- ----------- ----------- ------------- ----------- -----------
3,300,574 7,884,391 3,819,691 23,437,396 19,254,421 10,032,116
6,658,543 -- -- -- -- --
86,880 1,177,076 3,467,525 1,461,938 2,024,954 2,852,349
(26,833,257) (11,419,815) (12,517,019) (11,858,363) (13,389,656) (5,849,853)
- ------------- ----------- ----------- ------------- ----------- -----------
(16,787,260) (2,358,348) (5,229,803) 13,040,971 7,889,719 7,034,612
- ------------- ----------- ----------- ------------- ----------- -----------
-- -- 262,881 -- -- --
-- -- 725,932 -- -- --
-- -- (8,212,654) -- -- --
-- -- (1,145,495) -- -- --
- ------------- ----------- ----------- ------------- ----------- -----------
-- -- (8,369,336) -- -- --
- ------------- ----------- ----------- ------------- ----------- -----------
See Notes to Financial Statements.
79
STATEMENTS OF CHANGES IN NET ASSETS -- CAPITAL STOCK ACTIVITY (CONTINUED)
COLUMBIA SMALL COMPANY EQUITY FUND (A)
---------------------------------------
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, OCTOBER 31, OCTOBER 31,
2003 (B) 2002 2001
------------- ----------- -----------
OTHER INFORMATION:
SHARE TRANSACTIONS:
Class A:
Sold............................................... 47,106 -- --
Repurchased........................................ (19,853) -- --
------------- ----------- -----------
Net increase in shares outstanding............... 27,253 -- --
------------- ----------- -----------
Class B:
Sold............................................... 15,904 -- --
Repurchased........................................ (593) -- --
------------- ----------- -----------
Net increase in shares outstanding............... 15,311 -- --
------------- ----------- -----------
Class C:
Sold............................................... 14,632 -- --
Repurchased........................................ (10,379) -- --
------------- ----------- -----------
Net increase in shares outstanding............... 4,253 -- --
------------- ----------- -----------
Class G:
Sold............................................... 15,704 358,543 453,309
Issued to shareholders in reinvestment of dividends -- -- 190,789
Repurchased........................................ (372,314) (561,965) (479,347)
------------- ----------- -----------
Net increase (decrease) in shares outstanding.... (356,610) (203,422) 164,751
------------- ----------- -----------
Class T:
Sold............................................... 1,610,555 7,332,857 40,482,347
Issued to shareholders in reinvestment of dividends -- -- 1,024,782
Repurchased........................................ (1,992,911) (7,849,704) (41,633,984)
------------- ----------- -----------
Net decrease in shares outstanding............... (382,356) (516,847) (126,855)
------------- ----------- -----------
Class Z:
Sold............................................... 8,255,053 5,263,829 7,947,905
Issued to shareholders in reinvestment of dividends -- -- 2,649,447
Repurchased........................................ (6,917,009) (7,195,424) (9,032,785)
------------- ----------- -----------
Net increase (decrease) in shares outstanding.... 1,338,044 (1,931,595) 1,564,567
------------- ----------- -----------
- -------------------
(a) The Funds have changed their fiscal year end from October 31 to September
30.
(b) Effective November 18, 2002, the Galaxy Small Company Equity Fund Retail B,
Retail A and Trust shares were reorganized as Liberty Small Company Equity
Fund Class G, Class T and Class Z shares, respectively. Subsequently, the
Fund began offering Class A, Class B and Class C shares. Effective October
13, 2003, the Liberty Small Company Equity Fund was renamed Columbia Small
Company Equity Fund.
See Notes to Financial Statements.
80
[GRAPHIC]
Columbia Asset Allocation Fund
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
PERIOD ENDED YEAR ENDED OCTOBER 31,
SEPTEMBER 30, --------------------------------------
2003 (A)(B)(C) 2002 2001 2000
CLASS A SHARES -------------- ------- ------- ------
Net Asset Value, Beginning of Period........................ $12.86 $ 14.95 $ 18.77 $17.73
-------------- ------- ------- ------
Income from Investment Operations:
Net investment income/(e)/.................................. 0.20/(f)/ 0.26/(g)/ 0.34/(f)/ 0.39/(f)/
Net realized and unrealized (gain) loss on investments,
foreign currency and futures contracts..................... 1.17 (2.12)/(g)/ (3.06) 1.36
-------------- ------- ------- ------
Total from Investment Operations............................ 1.37 (1.86) (2.72) 1.75
-------------- ------- ------- ------
Less Distributions Declared to Shareholders:
From net investment income.................................. (0.22) (0.23) (0.36) (0.40)
From net realized gains..................................... -- -- (0.74) (0.31)
-------------- ------- ------- ------
Total Distributions Declared to Shareholders................ (0.22) (0.23) (1.10) (0.71)
-------------- ------- ------- ------
Net Asset Value, End of Period.............................. $14.01 $ 12.86 $ 14.95 $18.77
============== ======= ======= ======
Total Return/(h) (i)/....................................... 10.80%/(j)/ (12.53)% (15.08)% 10.15%
============== ======= ======= ======
Ratios to Average Net Assets/Supplemental Data:
Expenses/(k)/............................................... 1.49%/(l)/ 1.40% 1.26% 1.15%
Net investment income/(k)/.................................. 1.55%/(l)/ 1.73%/(g)/ 2.07% 2.15%
Waiver/reimbursement........................................ 0.01%/(l)/ 0.13% 0.12% 0.15%
Portfolio turnover rate..................................... 122%/(j)/ 40% 65% 59%
Net assets, end of period (000's)........................... $1,211 $ 43 $ 60 $ 186
---------
1999 (D)
CLASS A SHARES --------
Net Asset Value, Beginning of Period........................ $16.95
--------
Income from Investment Operations:
Net investment income/(e)/.................................. 0.44
Net realized and unrealized (gain) loss on investments,
foreign currency and futures contracts..................... 1.17
--------
Total from Investment Operations............................ 1.61
--------
Less Distributions Declared to Shareholders:
From net investment income.................................. (0.40)
From net realized gains..................................... (0.43)
--------
Total Distributions Declared to Shareholders................ (0.83)
--------
Net Asset Value, End of Period.............................. $17.73
========
Total Return/(h) (i)/....................................... 9.72%
========
Ratios to Average Net Assets/Supplemental Data:
Expenses/(k)/............................................... 1.16 %
Net investment income/(k)/.................................. 2.27 %
Waiver/reimbursement........................................ 0.13 %
Portfolio turnover rate..................................... 135 %
Net assets, end of period (000's)........................... $ 238
- -------------------
(a) On October 13, 2003, the Liberty Asset Allocation Fund was redesignated the
Columbia Asset Allocation Fund.
(b) The Fund has 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) Net investment income per share before reimbursement of certain expenses
for the period ended September 30, 2003 and the years ended October 31,
2002, 2001, 2000 and 1999 was $0.20, $0.24, $0.33, $0.37 and $0.41,
respectively.
(f) Per share data was calculated using average shares outstanding during the
period.
(g) The Trust 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 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) Had the Advisor and/or any of its affiliates not waived or reimbursed a
portion of expenses, total return would have been reduced.
(j) Not annualized.
(k) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(l) Annualized.
See Notes to Financial Statements.
81
Columbia Asset Allocation Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
PERIOD ENDED YEAR ENDED OCTOBER 31,
SEPTEMBER 30, -----------------------------------------------
2003 (A)(B)(C) 2002 2001 2000 1999 (D)
CLASS B SHARES -------------- ------- ------- ------ --------
Net Asset Value, Beginning of Period.................... $ 12.85 $ 14.93 $ 18.75 $17.71 $16.95
-------------- ------- ------- ------ --------
Income from Investment Operations:
Net investment income/(e)/.............................. 0.12/ (f)/ 0.14/(g)/ 0.22/(f)/ 0.26/(f)/ 0.29
Net realized and unrealized (gain) loss on investments,
foreign currency and futures contracts................. 1.17 (2.08)/(g)/ (3.06) 1.35 1.19
-------------- ------- ------- ------ --------
Total from Investment Operations........................ 1.29 (1.94) (2.84) 1.61 1.48
-------------- ------- ------- ------ --------
Less Distributions Declared to Shareholders:
From net investment income.............................. (0.14) (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) (0.14) (0.98) (0.57) (0.72)
-------------- ------- ------- ------ --------
Net Asset Value, End of Period.......................... $ 14.00 $ 12.85 $ 14.93 $18.75 $17.71
============== ======= ======= ====== ========
Total Return/(h) (i)/................................... 10.13%/(j)/ (13.06)% (15.68)% 9.29% 8.91%
============== ======= ======= ====== ========
Ratios to Average Net Assets/Supplemental Data:
Expenses/(k)/........................................... 2.17%/(l)/ 2.06% 1.99% 1.89% 1.90%
Net investment income/(k)/.............................. 0.95%/(l)/ 1.07%/(g)/ 1.34% 1.41% 1.53 %
Waiver/reimbursement.................................... 0.01%/(l)/ -- 0.04% 0.17% 0.18%
Portfolio turnover rate................................. 122%/(j)/ 40% 65% 59% 135 %
Net assets, end of period (000's)....................... $ 2,539 $ 276 $ 389 $ 526 $ 519
- -------------------
(a) On October 13, 2003, the Liberty Asset Allocation Fund was redesignated the
Columbia Asset Allocation Fund.
(b) The Fund has 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) Net investment income per share before reimbursement of certain expenses
for the period ended September 30, 2003 and the years ended October 31,
2002, 2001, 2000 and 1999 was $0.12, $0.14, $0.22, $0.23 and $0.26,
respectively.
(f) Per share data was calculated using average shares outstanding during the
period.
(g) The Trust 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 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) Had the Advisor and/or any of its affiliates not waived or reimbursed a
portion of expenses, total return would have been reduced.
(j) Not annualized.
(k) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(l) Annualized.
See Notes to Financial Statements.
82
Columbia Asset Allocation Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD IS AS FOLLOWS:
PERIOD ENDED
SEPTEMBER 30,
2003 (A)(B)(C)
CLASS C SHARES --------------
Net Asset Value, Beginning of Period........................... $13.08
--------------
Income from Investment Operations:
Net investment income/(d) (e)/................................. 0.10
Net realized and unrealized gain on investments, foreign
currency and futures contracts................................ 0.93
--------------
Total from Investment Operations............................... 1.03
--------------
Less Distributions Declared to Shareholders:
From net investment income..................................... (0.11)
--------------
Total Distributions Declared to Shareholders................... (0.11)
--------------
Net Asset Value, End of Period................................. $14.00
==============
Total Return/(f) (g) (h)/...................................... 7.93%
==============
Ratios to Average Net Assets/Supplemental Data:
Expenses/(i) (j)/.............................................. 2.28%
Net investment income/(i) (j)/................................. 0.85%
Waiver/reimbursement/(j)/...................................... 0.01%
Portfolio turnover rate/(h)/................................... 122%
Net assets, end of period (000's).............................. $ 187
- -------------------
(a) On October 13, 2003, the Liberty Asset Allocation Fund was redesignated the
Columbia Asset Allocation Fund.
(b) The Fund has 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 before reimbursement of certain expenses
for the period ended September 30, 2003 was $0.10.
(f) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(g) Had the Advisor and/or any of its affiliates not waived or reimbursed a
portion of expenses, total return would have been reduced.
(h) Not annualized.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
See Notes to Financial Statements.
83
Columbia Asset Allocation Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
PERIOD ENDED YEAR ENDED OCTOBER 31,
SEPTEMBER 30, -----------------------------------------------------
2003 (A)(B)(C) 2002 2001 2000 1999
CLASS G SHARES -------------- ------- -------- -------- -------
Net Asset Value, Beginning of Period.......... $ 12.84 $ 14.92 $ 18.74 $ 17.70 $ 16.92
-------------- ------- -------- -------- -------
Income from Investment Operations:
Net investment income/(d)/.................... 0.12/(e)/ 0.14/(f)/ 0.22/(e)/ 0.24/(e)/ 0.25
Net realized and unrealized (gain) loss on
investments, foreign currency and futures
contracts.................................... 1.17 (2.08)/(f)/ (3.06) 1.36 1.21
-------------- ------- -------- -------- -------
Total from Investment Operations.............. 1.29 (1.94) (2.84) 1.60 1.46
-------------- ------- -------- -------- -------
Less Distributions Declared to Shareholders:
From net investment income.................... (0.13) (0.14) (0.24) (0.25) (0.25)
From net realized gains....................... -- -- (0.74) (0.31) (0.43)
-------------- ------- -------- -------- -------
Total Distributions Declared to Shareholders.. (0.13) (0.14) (0.98) (0.56) (0.68)
-------------- ------- -------- -------- -------
Net Asset Value, End of Period................ $ 14.00 $ 12.84 $ 14.92 $ 18.74 $ 17.70
============== ======= ======== ======== =======
Total Return/(g)/............................. 10.12%/(h)(i)/ (13.08)%/(h)/ (15.72)%/(h)/ 9.20% 8.76 %
============== ======= ======== ======== =======
Ratios to Average Net Assets/
Supplemental Data:
Expenses/(j)/................................. 2.19%/(k)/ 2.09% 2.01% 1.99% 2.00 %
Net investment income/(j)/.................... 1.02%/(k)/ 1.04%/(f)/ 1.33% 1.31% 1.43 %
Waiver/reimbursement.......................... 0.01%/(k)/ 0.03% 0.01% -- --
Portfolio turnover rate....................... 122%/(i)/ 40% 65% 59% 135 %
Net assets, end of period (000's)............. $56,383 $73,183 $106,074 $105,980 $91,199
--------
1998
CLASS G SHARES -------
Net Asset Value, Beginning of Period.......... $ 16.43
-------
Income from Investment Operations:
Net investment income/(d)/.................... 0.29
Net realized and unrealized (gain) loss on
investments, foreign currency and futures
contracts.................................... 1.71
-------
Total from Investment Operations.............. 2.00
-------
Less Distributions Declared to Shareholders:
From net investment income.................... (0.30)
From net realized gains....................... (1.21)
-------
Total Distributions Declared to Shareholders.. (1.51)
-------
Net Asset Value, End of Period................ $ 16.92
=======
Total Return/(g)/............................. 13.14 %
=======
Ratios to Average Net Assets/
Supplemental Data:
Expenses/(j)/................................. 1.99 %
Net investment income/(j)/.................... 1.77 %
Waiver/reimbursement.......................... --
Portfolio turnover rate....................... 108 %
Net assets, end of period (000's)............. $57,876
- -------------------
(a) On October 13, 2003, the Liberty Asset Allocation Fund was redesignated the
Columbia Asset Allocation Fund.
(b) The Fund has 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) Net investment income per share before reimbursement of certain expenses
for the period ended September 30, 2003 and the years ended October 31,
2002, 2001, 2000 and 1999 was $0.12, $0.14, $0.22, $0.24, $0.25 and $0.29,
respectively.
(e) Per share data was calculated using average shares outstanding during the
period.
(f) The Trust 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 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 contingent deferred sales charge.
(h) Had the Advisor and/or any of its affiliates not waived or reimbursed 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.
See Notes to Financial Statements.
84
Columbia Asset Allocation Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
PERIOD ENDED YEAR ENDED OCTOBER 31,
SEPTEMBER 30, -------------------------------------------------------
2003 (A)(B)(C) 2002 2001 2000 1999
CLASS T SHARES -------------- -------- -------- -------- --------
Net Asset Value, Beginning of Period........ $ 12.87 $ 14.95 $ 18.79 $ 17.74 $ 16.95
-------------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income/(d)/.................. 0.21/(e)/ 0.25/(f)/ 0.33/(e)/ 0.37/(e)/ 0.37
Net realized and unrealized (gain) loss on
investments, foreign currency and futures
contracts.................................. 1.16 (2.09)/(f)/ (3.08) 1.36 1.21
-------------- -------- -------- -------- --------
Total from Investment Operations............ 1.37 (1.84) (2.75) 1.73 1.58
-------------- -------- -------- -------- --------
Less Distributions Declared to Shareholders:
From net investment income.................. (0.23) (0.24) (0.35) (0.37) (0.36)
From net realized gains..................... -- -- (0.74) (0.31) (0.43)
-------------- -------- -------- -------- --------
Total Distributions Declared to Shareholders (0.23) (0.24) (1.09) (0.68) (0.79)
-------------- -------- -------- -------- --------
Net Asset Value, End of Period.............. $ 14.01 $ 12.87 $ 14.95 $ 18.79 $ 17.74
============== ======== ======== ======== ========
Total Return/(g)/........................... 10.75%/(h)(i)/ (12.45)%/(h)/ (15.18)%/(h)/ 9.98% 9.53 %
============== ======== ======== ======== ========
Ratios to Average Net Assets/Supplemental
Data:
Expenses/(j)/............................... 1.49%/(k)/ 1.37% 1.33% 1.29% 1.32 %
Net investment income/(j)/.................. 1.73%/(k)/ 1.76%/(f)/ 2.01% 2.01% 2.11 %
Waiver/reimbursement........................ 0.01%/(k)/ 0.01% 0.01 -- --
Portfolio turnover rate..................... 122%/(i)/ 40% 65% 59% 135 %
Net assets, end of period (000's)........... $189,580 $198,154 $289,882 $371,590 $389,077
---------
1998
CLASS T SHARES --------
Net Asset Value, Beginning of Period........ $ 16.46
--------
Income from Investment Operations:
Net investment income/(d)/.................. 0.38
Net realized and unrealized (gain) loss on
investments, foreign currency and futures
contracts.................................. 1.72
--------
Total from Investment Operations............ 2.10
--------
Less Distributions Declared to Shareholders:
From net investment income.................. (0.40)
From net realized gains..................... (1.21)
--------
Total Distributions Declared to Shareholders (1.61)
--------
Net Asset Value, End of Period.............. $ 16.95
========
Total Return/(g)/........................... 13.85 %
========
Ratios to Average Net Assets/Supplemental
Data:
Expenses/(j)/............................... 1.33 %
Net investment income/(j)/.................. 2.43 %
Waiver/reimbursement........................ --
Portfolio turnover rate..................... 108 %
Net assets, end of period (000's)........... $323,498
- -------------------
(a) On October 13, 2003, the Liberty Asset Allocation Fund was redesignated the
Columbia Asset Allocation Fund.
(b) The Fund has 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) Net investment income per share before reimbursement of certain expenses
for the period ended September 30, 2003 and the years ended October 31,
2002, 2001, 2000, 1999 and 1998 was $0.21, $0.24, $0.33, $0.37, $0.37 and
$0.38, respectively.
(e) Per share data was calculated using average shares outstanding during the
period.
(f) The Trust 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 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) Had the Advisor and/or any of its affiliates not waived or reimbursed 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.
See Notes to Financial Statements.
85
Columbia Asset Allocation Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
PERIOD ENDED YEAR ENDED OCTOBER 31,
SEPTEMBER 30, -------------------------------------------------------
2003 (A)(B)(C) 2002 2001 2000 1999
CLASS Z SHARES -------------- -------- -------- -------- --------
Net Asset Value, Beginning of Period........... $ 12.87 $ 14.94 $ 18.78 $ 17.73 $ 16.96
-------------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income/(d)/..................... 0.25/(e)/ 0.29/(f)/ 0.37/(e)/ 0.41/(e)/ 0.40
Net realized and unrealized (gain) loss on
investments, foreign currency and futures
contracts..................................... 1.16 (2.09)/(f)/ (3.08) 1.36 1.20
-------------- -------- -------- -------- --------
Total from Investment Operations............... 1.41 (1.80) (2.71) 1.77 1.60
-------------- -------- -------- -------- --------
Less Distributions Declared to Shareholders:
From net investment income..................... (0.27) (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) (0.27) (1.13) (0.72) (0.83)
-------------- -------- -------- -------- --------
Net Asset Value, End of Period................. $ 14.01 $ 12.87 $ 14.94 $ 18.78 $ 17.73
============== ======== ======== ======== ========
Total Return/(g)/.............................. 11.07%/(h)(i)/ (12.23)%/(h)/ (14.94)%/(h)/ 10.21% 9.63%
============== ======== ======== ======== ========
Ratios to Average Net Assets/Supplemental Data:
Expenses/(j)/.................................. 1.16%/(k)/ 1.12% 1.11% 1.09% 1.12%
Net investment income/(j)/..................... 2.04%/(k)/ 2.01%/(f)/ 2.23% 2.21% 2.31%
Waiver/reimbursement........................... 0.01%/(k)/ 0.03% -- -- --
Portfolio turnover rate........................ 122%/(i)/ 40% 65% 59% 135%
Net assets, end of period (000's).............. $217,935 $163,934 $230,562 $290,970 $269,851
---------
1998
CLASS Z SHARES --------
Net Asset Value, Beginning of Period........... $ 16.47
--------
Income from Investment Operations:
Net investment income/(d)/..................... 0.42
Net realized and unrealized (gain) loss on
investments, foreign currency and futures
contracts..................................... 1.71
--------
Total from Investment Operations............... 2.13
--------
Less Distributions Declared to Shareholders:
From net investment income..................... (0.43)
From net realized gains........................ (1.21)
--------
Total Distributions Declared to Shareholders... (1.64)
--------
Net Asset Value, End of Period................. $ 16.96
========
Total Return/(g)/.............................. 14.05%
========
Ratios to Average Net Assets/Supplemental Data:
Expenses/(j)/.................................. 1.13%
Net investment income/(j)/..................... 2.63%
Waiver/reimbursement........................... --
Portfolio turnover rate........................ 108%
Net assets, end of period (000's).............. $218,666
- -------------------
(a) On October 13, 2003, the Liberty Asset Allocation Fund was redesignated the
Columbia Asset Allocation Fund.
(b) The Fund has 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) Net investment income per share before reimbursement of certain expenses
for the period ended September 30, 2003 and the years ended October 31,
2002, 2001, 2000, 1999 and 1998 was $0.25, $0.28, $0.37, $0.41, $0.40 and
$0.42, respectively.
(e) Per share data was calculated using average shares outstanding during the
period.
(f) The Trust 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 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) Had the Advisor and/or any of its affiliates not waived or reimbursed 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.
See Notes to Financial Statements.
86
[GRAPHIC]
Columbia Large Cap Growth Fund
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
PERIOD ENDED YEAR ENDED OCTOBER 31,
SEPTEMBER 30, --------------------------------------------
2003 (A)(B)(C) 2002 2001 2000
CLASS A SHARES -------------- ---------- ---------- ---------
Net Asset Value, Beginning of Period.................. $16.06 $ 19.74 $ 32.31 $ 28.95
-------------- ---------- ---------- ---------
Income from Investment Operations:
Net investment income (loss)/(e)/..................... (0.05)/(f)/ 0.03/(f)/ (0.02) (0.05)/(f)/
Net realized and unrealized gain (loss) on investments 1.61 (3.71) (8.92) 5.13
-------------- ---------- ---------- ---------
Total from Investment Operations...................... 1.56 (3.68) (8.94) 5.08
-------------- ---------- ---------- ---------
Less Distributions Declared to Shareholders:
From net investment income............................ (0.03) -- -- --
From net realized gains............................... -- -- (3.63) (1.72)
-------------- ---------- ---------- ---------
Total Distributions Declared to Shareholders.......... (0.03) -- (3.63) (1.72)
-------------- ---------- ---------- ---------
Net Asset Value, End of Period........................ $17.59 $ 16.06 $ 19.74 $ 32.31
============== ========== ========== =========
Total Return/(g)(h)/.................................. 9.72%/(i)/ (18.64)% (30.43)% 18.36%
============== ========== ========== =========
Ratios to Average Net Assets/Supplemental Data:
Expenses/(j)/......................................... 1.30%/(k)/ 1.12% 1.13% 1.12%
Net investment income (loss)/(j)/..................... (0.30)%/(k)/ 0.14% (0.10)% (0.17)%
Waiver/reimbursement.................................. 0.02%/(k)/ 0.05% 0.03% 0.11%
Portfolio turnover rate............................... 91%/(i)/ 43% 48% 54%
Net assets, end of period (000's)..................... $1,887 $ 56 $ 671 $ 142
----------
1999 (D)
CLASS A SHARES ---------
Net Asset Value, Beginning of Period.................. $ 24.49
---------
Income from Investment Operations:
Net investment income (loss)/(e)/..................... (0.01)
Net realized and unrealized gain (loss) on investments 6.37
---------
Total from Investment Operations...................... 6.36
---------
Less Distributions Declared to Shareholders:
From net investment income............................ --
From net realized gains............................... (1.90)
---------
Total Distributions Declared to Shareholders.......... (1.90)
---------
Net Asset Value, End of Period........................ $ 28.95
=========
Total Return/(g)(h)/.................................. 27.30%
=========
Ratios to Average Net Assets/Supplemental Data:
Expenses/(j)/......................................... 1.14%
Net investment income (loss)/(j)/..................... (0.05)%
Waiver/reimbursement.................................. 0.14%
Portfolio turnover rate............................... 53%
Net assets, end of period (000's)..................... $ 107
- -------------------
(a) On October 13, 2003, the Liberty Equity Growth Fund was redesignated the
Columbia Large Cap Growth Fund.
(b) The Fund has 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) Net investment income (loss) per share before reimbursement of certain
expenses for the period ended September 30, 2003 and the years ended
October 31, 2002, 2001, 2000 and 1999 was $(0.05), $0.02, $(0.03), $(0.09)
and $(0.04), respectively.
(f) Per share data was calculated using average shares outstanding during the
period.
(g) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(h) Had the Advisor and/or any of its affiliates not waived or reimbursed 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.
See Notes to Financial Statements.
87
Columbia Large Cap Growth Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
PERIOD ENDED YEAR ENDED OCTOBER 31,
SEPTEMBER 30, ---------------------------------------------
2003 (A)(B)(C) 2002 2001 2000 1999 (D)
CLASS B SHARES -------------- ------- ------- ------ --------
Net Asset Value, Beginning of Period.................. $15.57 $ 19.32 $ 31.94 $28.84 $24.49
-------------- ------- ------- ------ --------
Income from Investment Operations:
Net investment loss/(e)/.............................. (0.14)/(f)/ (0.14)/(f)/ (0.19) (0.29)/(f)/ (0.10)
Net realized and unrealized gain (loss) on investments 1.53 (3.61) (8.80) 5.11 6.35
-------------- ------- ------- ------ --------
Total from Investment Operations...................... 1.39 (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........................ $16.96 $ 15.57 $ 19.32 $31.94 $28.84
============== ======= ======= ====== ========
Total return/(g)(h)/.................................. 8.93%/(i)/ (19.41)% (31.00)% 17.48% 26.79%
============== ======= ======= ====== ========
Ratios to Average Net Assets/Supplemental Data:
Expenses/(j)/......................................... 2.13%/(k)/ 1.99% 1.95% 1.87% 1.87%
Net investment loss/(j)/.............................. (0.97)%/(k)/ (0.73)% (0.92)% (0.92)% (0.78)%
Waiver/reimbursement.................................. 0.02%/(k)/ 0.05% 0.03% 0.15% 0.32%
Portfolio turnover rate............................... 91%/(i)/ 43% 48% 54% 53%
Net assets, end of period (000's)..................... $1,013 $ 207 $ 309 $ 450 $ 246
- -------------------
(a) On October 13, 2003, the Liberty Equity Growth Fund was redesignated the
Columbia Large Cap Growth Fund.
(b) The Fund has 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) Net investment income (loss) per share before reimbursement of certain
expenses for the period ended September 30, 2003 and the years ended
October 31, 2002, 2001, 2000 and 1999 was $(0.14), $(0.15), $(0.20),
$(0.34) and $(0.14), respectively.
(f) Per share data was calculated using average shares outstanding during the
period.
(g) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(h) Had the Advisor and/or any of its affiliates not waived or reimbursed 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.
See Notes to Financial Statements.
88
Columbia Large Cap Growth Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD IS AS FOLLOWS:
PERIOD ENDED
SEPTEMBER 30,
2003 (A)(B)(C)
CLASS C SHARES --------------
Net Asset Value, Beginning of Period........... $16.04
--------------
Income from Investment Operations:
Net investment loss/(d)/....................... (0.13)
Net realized and unrealized gain on investments 1.07
--------------
Total from Investment Operations............... 0.94
--------------
Net Asset Value, End of Period................. $16.98
==============
Total Return/(e)(f)(g)/........................ 5.86%
==============
Ratios to Average Net Assets/Supplemental Data:
Expenses/(h)(i)/............................... 2.00%
Net investment loss/(h)(i)/.................... (0.92)%
Waiver/reimbursement/(i)/...................... 0.02%
Portfolio turnover rate/(g)/................... 91%
Net assets, end of period (000's).............. $ 524
- -------------------
(a) On October 13, 2003, the Liberty Equity Growth Fund was redesignated the
Columbia Large Cap Growth Fund.
(b) The Fund has 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) Net investment loss per share before reimbursement of certain expenses for
the period ended September 30, 2003 was $(0.13).
(e) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(f) Had the Advisor and/or any of its affiliates 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.
See Notes to Financial Statements.
89
Columbia Large Cap Growth Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
PERIOD ENDED YEAR ENDED OCTOBER 31,
SEPTEMBER 30, ----------------------------------------------------------
2003 (A)(B)(C) 2002 2001 2000 1999
CLASS G SHARES -------------- ------- ------- -------- -------
Net Asset Value, Beginning of Period........ $ 15.11 $ 18.79 $ 31.22 $ 28.27 $ 24.07
-------------- ------- ------- -------- -------
Income from Investment Operations:
Net investment loss/(d)/.................... (0.15)/(e)/ (0.17)/(e)/ (0.21) (0.35)/(e)/ (0.20)
Net realized and unrealized gain (loss) on
investments................................ 1.47 (3.51) (8.59) 5.02 6.30
-------------- ------- ------- -------- -------
Total from Investment Operations............ 1.32 (3.68) (8.80) 4.67 6.10
-------------- ------- ------- -------- -------
Less Distributions Declared to Shareholders:
In excess of 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.............. $ 16.43 $ 15.11 $ 18.79 $ 31.22 $ 28.27
============== ======= ======= ======== =======
Total Return/(g)/........................... 8.66%/(h)(i)/ (19.49)%/(h)/ (31.16)%/(h)/ 17.29%/(h)/ 26.63%/(h)/
============== ======= ======= ======== =======
Ratios to Average Net Assets/ Supplemental
Data:
Expenses/(j)/............................... 2.31%/(k)/ 2.18% 2.11% 2.07% 2.05%
Net investment loss/(j)/.................... (1.02)%/(k)/ (0.92)% (1.08)% (1.11)% (0.96)%
Waiver/reimbursement........................ 0.02%/(k)/ 0.07% 0.02% 0.02% 0.03%
Portfolio turnover rate..................... 91%/(i)/ 43% 48% 54% 53%
Net assets, end of period (000's)........... $54,850 $64,156 $92,292 $130,347 $71,525
--------
1998
CLASS G SHARES -------
Net Asset Value, Beginning of Period........ $ 24.91
-------
Income from Investment Operations:
Net investment loss/(d)/.................... (0.16)/(e)/
Net realized and unrealized gain (loss) on
investments................................ 3.16
-------
Total from Investment Operations............ 3.00
-------
Less Distributions Declared to Shareholders:
In excess of net investment income.......... --/(f)/
From net realized gains..................... (3.84)
-------
Total Distributions Declared to Shareholders (3.84)
-------
Net Asset Value, End of Period.............. $ 24.07
=======
Total Return/(g)/........................... 13.98%
=======
Ratios to Average Net Assets/ Supplemental
Data:
Expenses/(j)/............................... 2.04%
Net investment loss/(j)/.................... (0.68)%
Waiver/reimbursement........................ --
Portfolio turnover rate..................... 60%
Net assets, end of period (000's)........... $34,693
- -------------------
(a) On October 13, 2003, the Liberty Equity Growth Fund was redesignated the
Columbia Large Cap Growth Fund.
(b) The Fund has 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) Net investment loss per share before reimbursement of certain expenses for
the period ended September 30, 2003 and the years ended October 31, 2002,
2001, 2000, 1999 and 1998 was $(0.15), $(0.18), $(0.21), $(0.35), ($0.21)
and $(0.16), respectively.
(e) Per share data was calculated using average shares outstanding during the
period.
(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 Advisor and/or any of its affiliates not waived or reimbursed 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.
See Notes to Financial Statements.
90
Columbia Large Cap Growth Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
PERIOD ENDED YEAR ENDED OCTOBER 31,
SEPTEMBER 30, ------------------------------------------------------------------
2003 (A)(B)(C) 2002 2001 2000 1999 1998
CLASS T SHARES -------------- -------- -------- -------- -------- --------
Net Asset Value, Beginning of
Period......................... $ 15.98 $ 19.70 $ 32.31 $ 28.99 $ 24.47 $ 25.14
-------------- -------- -------- -------- -------- --------
Income from Investment
Operations:
Net investment income
(loss)/(d)/.................... (0.02)/(e)/ (0.02)/(e)/ (0.07) (0.10)/(e)/ (0.06) 0.01
Net realized and unrealized
gain (loss) on investments..... 1.54 (3.70) (8.91) 5.14 6.48 3.19
-------------- -------- -------- -------- -------- --------
Total from Investment Operations 1.52 (3.72) (8.98) 5.04 6.42 3.20
-------------- -------- -------- -------- -------- --------
Less Distributions Declared to
Shareholders:
From net investment income...... -- -- -- -- -- (0.03)
In excess of net investment
income......................... -- -- -- -- -- --/(f)/
From net realized gains......... -- -- (3.63) (1.72) (1.90) (3.84)
-------------- -------- -------- -------- -------- --------
Total Distributions Declared to
Shareholders................... -- -- (3.63) (1.72) (1.90) (3.87)
-------------- -------- -------- -------- -------- --------
Net Asset Value, End of Period.. $ 17.50 $ 15.98 $ 19.70 $ 32.31 $ 28.99 $ 24.47
============== ======== ======== ======== ======== ========
Total Return/(g)/............... 9.51%/(h) (i)/ (18.88)%/(i)/ (30.57)%/(i)/ 18.18% 27.55% 14.73%
============== ======== ======== ======== ======== ========
Ratios to Average Net
Assets/Supplemental Data:
Expenses/(j)/................... 1.45 %/(k)/ 1.34% 1.31% 1.28% 1.34% 1.34%
Net investment income
(loss)/(j)/.................... (0.16)%/(k)/ (0.08)% (0.28)% (0.33)% (0.25)% 0.02%
Waiver/reimbursement............ 0.02%/(k)/ 0.07% 0.02% -- -- --
Portfolio turnover rate......... 91%/(h)/ 43% 48% 54% 53% 60%
Net assets, end of period
(000's)........................ $235,849 $239,279 $346,214 $580,417 $443,639 $312,951
- -------------------
(a) On October 13, 2003, the Liberty Equity Growth Fund was redesignated the
Columbia Large Cap Growth Fund.
(b) The Fund has 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) Net investment income (loss) per share before reimbursement of certain
expenses for the period ended September 30, 2003 and the years ended
October 31, 2002, 2001, 2000, 1999 and 1998 was $(0.02), $(0.03), $(0.08),
$(0.10), $(0.06) and $0.01, respectively.
(e) Per share data was calculated using average shares outstanding during the
period.
(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 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.
See Notes to Financial Statements.
91
Columbia Large Cap Growth Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
PERIOD ENDED YEAR ENDED OCTOBER 31,
SEPTEMBER 30, --------------------------------------------------------------------
2003 (A)(B)(C) 2002 2001 2000 1999 1998
CLASS Z SHARES -------------- -------- -------- ---------- ---------- --------
Net Asset Value, Beginning of
Period............................ $ 16.28 $ 19.99 $ 32.61 $ 29.15 $ 24.52 $ 25.17
-------------- -------- -------- ---------- ---------- --------
Income from Investment Operations:
Net investment income/(d)/......... 0.05/(e)/ 0.07/(e)/ 0.02 0.01/(e)/ 0.03 0.09
Net realized and unrealized gain
(loss) on investments............. 1.57 (3.78) (9.01) 5.18 6.50 3.20
-------------- -------- -------- ---------- ---------- --------
Total from Investment Operations... 1.62 (3.71) (8.99) 5.19 6.53 3.29
-------------- -------- -------- ---------- ---------- --------
Less Distributions Declared to
Shareholders:
From net investment income......... (0.06) -- -- (0.01) -- (0.09)
In excess of net investment income. -- -- -- -- -- (0.01)
From net realized gains............ -- -- (3.63) (1.72) (1.90) (3.84)
-------------- -------- -------- ---------- ---------- --------
Total Distributions Declared to
Shareholders...................... (0.06) -- (3.63) (1.73) (1.90) (3.94)
-------------- -------- -------- ---------- ---------- --------
Net Asset Value, End of Period..... $ 17.84 $ 16.28 $ 19.99 $ 32.61 $ 29.15 $ 24.52
============== ======== ======== ========== ========== ========
Total Return/(f)/.................. 9.93/(g) (h)/ (18.51)%/(h)/ (30.29)%/(h)/ 18.63% 28.07% 15.17%
============== ======== ======== ========== ========== ========
Ratios to Average Net
Assets/Supplemental Data:
Expenses/(i)/...................... 0.99%/(j)/ 0.91% 0.93% 0.91% 0.94% 0.96%
Net investment income/(i)/......... 0.30%/(j)/ 0.35% 0.10% 0.04% 0.15% 0.40%
Waiver/reimbursement............... 0.02%/(j)/ 0.05% 0.01% -- -- --
Portfolio turnover rate............ 91%/(g)/ 43% 48% 54% 53% 60%
Net assets, end of period (000's).. $670,649 $699,215 $845,887 $1,258,399 $1,041,378 $815,756
- -------------------
(a) On October 13, 2003, the Liberty Equity Growth Fund was redesignated the
Columbia Large Cap Growth Fund.
(b) The Fund has 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) Net investment income per share before reimbursement of certain expenses
for the period ended September 30, 2003 and the years ended October 31,
2002, 2001, 2000, 1999 and 1998 was $0.05, $0.06, $0.02, $0.01, $0.03, and
$0.09, respectively.
(e) Per share data was calculated using average shares outstanding during the
period.
(f) Total return at net asset value assuming all distributions reinvested.
(g) Not annualized.
(h) Had the 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.
See Notes to Financial Statements.
92
[GRAPHIC]
Columbia Disciplined Value Fund
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD IS AS FOLLOWS:
PERIOD ENDED
SEPTEMBER 30,
2003 (A)(B)(C)
CLASS A SHARES --------------
Net Asset Value, Beginning of Period........... $10.06
--------------
Income from Investment Operations:
Net investment income/(d)/..................... 0.04
Net realized and unrealized gain on investments 0.92
--------------
Total from Investment Operations............... 0.96
--------------
Net Asset Value, End of Period................. $11.02
==============
Total Return/(e)(f)/........................... 9.54%
==============
Ratios to Average Net Assets/Supplemental Data:
Expenses /(g)(h)/.............................. 1.31%
Net investment income/(g)(h)/.................. 0.49%
Portfolio turnover rate/(f)/................... 50%
Net assets, end of period (000's).............. $ 903
- -------------------
(a) On October 13, 2003, the Liberty Equity Value Fund was redesignated the
Columbia Disciplined Value Fund.
(b) The Fund has 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) 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.
See Notes to Financial Statements.
93
Columbia Disciplined Value Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD IS AS FOLLOWS:
PERIOD ENDED
SEPTEMBER 30,
2003 (A)(B)(C)
CLASS B SHARES --------------
Net Asset Value, Beginning of Period........... $ 9.67
--------------
Income from Investment Operations:
Net investment loss/(d)/....................... (0.02)
Net realized and unrealized gain on investments 0.84
--------------
Total from Investment Operations............... 0.82
--------------
Net Asset Value, End of Period................. $10.49
==============
Total Return/(e)(f)/........................... 8.48%
==============
Ratios to Average Net Assets/Supplemental Data:
Expenses/(g)(h)/............................... 2.26%
Net investment loss/(g)(h)/.................... (0.27)%
Portfolio turnover rate/(f)/................... 50%
Net assets, end of period (000's).............. $ 338
- -------------------
(a) On October 13, 2003, the Liberty Equity Value Fund was renamed the Columbia
Disciplined Value Fund.
(b) The Fund has 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) 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.
See Notes to Financial Statements.
94
Columbia Disciplined Value Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD IS AS FOLLOWS:
PERIOD ENDED
SEPTEMBER 30,
2003 (A)(B)(C)
CLASS C SHARES --------------
Net Asset Value, Beginning of Period........................ $ 9.67
--------------
Income from Investment Operations:
Net investment loss/(d)(e)/................................. (0.05)
Net realized and unrealized gain on investments............. 0.85
--------------
Total from Investment Operations............................ 0.80
--------------
Net Asset Value, End of Period.............................. $10.47
==============
Total Return/(f)(g)/........................................ 8.27%
==============
Ratios to Average Net Assets/Supplemental Data:
Expenses/(h)(i)/............................................ 2.49%
Net investment loss/(h)(i)/................................. (0.60)%
Waiver/reimbursement/(i)/................................... 0.49%
Portfolio turnover rate/(g)/................................ 50%
Net assets, end of period (000's)........................... $ 24
- -------------------
(a) On October 13, 2003, the Liberty Equity Value Fund was renamed the Columbia
Disciplined Value Fund.
(b) The Fund has 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 loss before reimbursement of certain expenses for the period
ended September 30, 2003 was $(0.09).
(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.
See Notes to Financial Statements.
95
Columbia Disciplined Value Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
PERIOD ENDED YEAR ENDED OCTOBER 31,
SEPTEMBER 30, --------------------------------------------------------
2003 (A)(B)(C) 2002 2001 2000 1999 1998
CLASS G SHARES -------------- ------- ------- ------- ------- -------
Net Asset Value, Beginning of Period... $ 9.21 $ 12.10 $ 16.73 $ 18.08 $ 16.44 $ 18.24
-------------- ------- ------- ------- ------- -------
Income from Investment Operations:
Net investment loss/(d)/............... (0.04)/(e)/ (0.19) (0.10) (0.15) (0.15) (0.08)
Net realized and unrealized gain (loss)
on investments........................ 1.33 (2.35) (1.64) 1.25 2.40 1.48
-------------- ------- ------- ------- ------- -------
Total from Investment Operations....... 1.29 (2.54) (1.74) 1.10 2.25 1.40
-------------- ------- ------- ------- ------- -------
Less Distributions Declared to
Shareholders:
From net realized gains................ -- (0.35) (2.89) (2.45) (0.61) (3.20)
-------------- ------- ------- ------- ------- -------
Net Asset Value, End of Period......... $ 10.50 $ 9.21 $ 12.10 $ 16.73 $ 18.08 $ 16.44
============== ======= ======= ======= ======= =======
Total Return/(f)/...................... 14.01%/(g)/ (21.85)% (11.00)%/(h)/ 7.12%/(h)/ 13.81% 9.07%
============== ======= ======= ======= ======= =======
Ratios to Average Net Assets/
Supplemental Data:
Expenses/(i)/.......................... 2.31%/(j)/ 2.18% 2.13% 2.09% 2.08% 2.06%
Net investment loss/(i)/............... (0.47)%/(j)/ (1.15)% (0.91)% (0.83)% (0.87)% (0.54)%
Waiver/reimbursement................... -- -- 0.02% 0.03% -- --
Portfolio turnover rate................ 50%/(g)/ 99% 127% 72% 75% 82%
Net assets, end of period (000's)...... $11,074 $16,791 $25,776 $30,555 $30,988 $23,103
- -------------------
(a) On October 13, 2003, the Liberty Equity Value Fund was renamed the Columbia
Disciplined Value Fund.
(b) The Fund has 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, Class G shares.
(d) Net investment loss per share before reimbursement of certain expenses for
the period ended September 30, 2003 and the years ended October 31, 2002,
2001, 2000, 1999 and 1998 was $(0.04), $(0.19), $(0.10), $(0.15), $(0.15)
and $(0.08), respectively.
(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 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.
See Notes to Financial Statements.
96
Columbia Disciplined Value Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
PERIOD ENDED YEAR ENDED OCTOBER 31,
SEPTEMBER 30, ------------------------------------------------------------
2003 (A)(B)(C) 2002 2001 2000 1999 1998
CLASS T SHARES -------------- -------- -------- -------- -------- --------
Net Asset Value, Beginning of Period....... $ 9.58 $ 12.48 $ 17.05 $ 18.28 $ 16.50 $ 18.21
-------------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income (loss)/(d)/.......... 0.03 /(e)/ (0.05) (0.02) (0.02) (0.03) 0.03
Net realized and unrealized gain (loss) on
investments............................... 1.39 (2.50) (1.66) 1.25 2.42 1.50
-------------- -------- -------- -------- -------- --------
Total from Investment Operations........... 1.42 (2.55) (1.68) 1.23 2.39 1.53
-------------- -------- -------- -------- -------- --------
Less Distributions Declared to
Shareholders:
From net investment income................. -- -- -- (0.01) -- (0.04)
In excess of net investment income......... -- -- -- --/(f)/ -- --
From net realized gains.................... -- (0.35) (2.89) (2.45) (0.61) (3.20)
-------------- -------- -------- -------- -------- --------
Total Distributions Declared to
Shareholders.............................. -- (0.35) (2.89) (2.46) (0.61) (3.24)
-------------- -------- -------- -------- -------- --------
Net Asset Value, End of Period............. $ 11.00 $ 9.58 $ 12.48 $ 17.05 $ 18.28 $ 16.50
============== ======== ======== ======== ======== ========
Total Return/(g)/.......................... 14.82%/(h)/ (21.31)% (10.27)%/(i)/ 7.83% 14.63% 9.88%
============== ======== ======== ======== ======== ========
Ratios to Average Net Assets/Supplemental
Data:
Expenses/(j)/.............................. 1.50%/(k)/ 1.41% 1.39% 1.36% 1.37% 1.37%
Net investment income (loss)/(j)/.......... 0.35%/(k)/ (0.38)% (0.17)% (0.10)% (0.16)% 0.15%
Waiver/reimbursement....................... -- -- 0.01% -- -- --
Portfolio turnover rate.................... 50 %/(h)/ 99% 127% 72% 75% 82%
Net assets, end of period (000's).......... $ 127,993 $123,085 $180,435 $226,836 $258,332 $234,730
- -------------------
(a) On October 13, 2003, the Liberty Equity Value Fund was redesignated the
Columbia Disciplined Value Fund.
(b) The Fund has 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, Class T shares.
(d) Net investment income (loss) per share before reimbursement of certain
expenses for the period ended September 30, 2003 and the years ended
October 31, 2002, 2001, 2000, 1999 and 1998 was $0.03, $(0.05), $(0.02),
$(0.02), $(0.03), and $0.03, respectively.
(e) Per share data was calculated using average shares outstanding during the
period.
(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 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.
See Notes to Financial Statements.
97
Columbia Disciplined Value Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
PERIOD ENDED YEAR ENDED OCTOBER 31,
SEPTEMBER 30, -----------------------------------------------------------
2003 (A)(B)(C) 2002 2001 2000 1999 1998
CLASS Z SHARES -------------- -------- -------- -------- -------- --------
Net Asset Value, Beginning of Period... $ 9.75 $ 12.65 $ 17.17 $ 18.35 $ 16.51 $ 18.21
-------------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income (loss)/(d)/...... 0.08/(e)/ (0.02) 0.02 0.04 0.03 0.08
Net realized and unrealized gain (loss)
on investments........................ 1.41 (2.53) (1.65) 1.25 2.42 1.49
-------------- -------- -------- -------- -------- --------
Total from Investment Operations....... 1.49 (2.55) (1.63) 1.29 2.45 1.57
-------------- -------- -------- -------- -------- --------
Less Distributions Declared to
Shareholders:
From net investment income............. -- -- -- (0.02) -- (0.07)
In excess of net investment income..... -- -- -- --/(f)/ -- --
From net realized gains................ -- (0.35) (2.89) (2.45) (0.61) (3.20)
-------------- -------- -------- -------- -------- --------
Total Distributions Declared to
Shareholders.......................... -- (0.35) (2.89) (2.47) (0.61) (3.27)
-------------- -------- -------- -------- -------- --------
Net Asset Value, End of Period......... $ 11.24 $ 9.75 $ 12.65 $ 17.17 $ 18.35 $ 16.51
============== ======== ======== ======== ======== ========
Total Return/(g)/...................... 15.28%/(h)/ (20.96)% (9.91)% 8.22% 15.04%/(i)/ 10.27%
============== ======== ======== ======== ======== ========
Ratios to Average Net Assets/
Supplemental Data:
Expenses/(j)/.......................... 1.04%/(k)/ 0.98% 1.00% 1.00% 1.02% 1.03%
Net investment income/(j)/............. 0.82%/(k)/ 0.05% 0.22% 0.26% 0.19% 0.49%
Waiver/reimbursement................... -- -- -- -- 0.01% --
Portfolio turnover rate................ 50%/(h)/ 99% 127% 72% 75% 82%
Net assets, end of period (000's)...... $224,137 $167,867 $152,002 $164,864 $281,064 $254,432
- -------------------
(a) On October 13, 2003, the Liberty Equity Value Fund was renamed the Columbia
Disciplined Value Fund.
(b) The Fund has 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, Class Z shares.
(d) Net investment income (loss) per share before reimbursement of certain
expenses for the period ended September 30, 2003 and the years ended
October 31, 2002, 2001, 2000, 1999 and 1998 was $0.08, ($0.02), $0.02
$0.04, $0.03 and $0.08, respectively.
(e) Per share data was calculated using average shares outstanding during the
period.
(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 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.
See Notes to Financial Statements.
98
[GRAPHIC]
Columbia International Equity Fund
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
PERIOD ENDED YEAR ENDED OCTOBER 31
SEPTEMBER 30, --------------------------------------------
2003 (A)(B)(C) 2002 2001 2000 1999 (D)
CLASS A SHARES -------------- ------- ------- ------ --------
Net Asset Value, Beginning of Period...................... $ 9.28 $ 11.19 $ 19.53 $20.98 $16.85
-------------- ------- ------- ------ --------
Income from Investment Operations:
Net investment income (loss)/(e)/......................... 0.06/(f)/ (0.01)/(f)/ (0.02) 0.46/(f)/ 0.06/(f)/
Net realized and unrealized gain (loss) on investments and
foreign currency......................................... 1.53 (1.72) (5.73) (0.60) 4.79
-------------- ------- ------- ------ --------
Total from Investment Operations.......................... 1.59 (1.73) (5.75) (0.14) 4.85
-------------- ------- ------- ------ --------
Less Distributions Declared to Shareholders:
From net investment income................................ (0.04) (0.18) (0.31) (0.12) (0.15)
From net realized gains................................... -- -- (2.28) (1.19) (0.57)
-------------- ------- ------- ------ --------
Total Distributions Declared to Shareholders.............. (0.04) (0.18) (2.59) (1.31) (0.72)
-------------- ------- ------- ------ --------
Net Asset Value, End of Period............................ $ 10.83 $ 9.28 $ 11.19 $19.53 $20.98
============== ======= ======= ====== ========
Total Return/(g) (h)/..................................... 17.23 %/(i)/ (15.78)% (33.38)% (1.34)% 29.73%
============== ======= ======= ====== ========
Ratios to Average Net Assets/Supplemental Data:
Expenses/(j)/............................................. 1.38%/(k)/ 1.63% 1.44% 1.10% 1.17%
Net investment income (loss)/(j)/......................... 0.69%/(k)/ (0.11)% 0.01% 2.06% 0.34%
Waiver/reimbursement...................................... 0.25%/(k)/ 0.56% 0.33% 0.89% 0.86%
Portfolio turnover rate................................... 66%/(i)/ 110% 60% 50% 45%
Net assets, end of period (000's)......................... $ 268 $ 8 $ 9 $ 14 $ 12
- -------------------
(a) On October 13, 2003, the Liberty International Equity Fund was redesignated
the Columbia International Equity Fund.
(b) The Fund has changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy International Equity Fund, Prime A shares
were redesignated Liberty International Equity Fund, Class A shares.
(d) The Fund began offering Prime A shares on November 1, 1998.
(e) Net investment income (loss) per share before reimbursement of certain
expenses for the period ended September 30, 2003 and the years ended
October 31, 2002, 2001, 2000 and 1999 was $0.03, $(0.07), $0.41, $0.26 and
$(0.09), respectively.
(f) Per share data was calculated using average shares outstanding during the
period.
(g) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(h) Had the Advisor and /or any of its affiliates not waived or reimbursed 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.
See Notes to Financial Statements.
99
Columbia International Equity Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
PERIOD ENDED YEAR ENDED OCTOBER 31
SEPTEMBER 30, -----------------------------------
2003 (A)(B)(C) 2002 2001 2000
CLASS B SHARES -------------- ------- ------- ------
Net Asset Value, Beginning of Period...................... $ 9.22 $ 11.11 $ 19.37 $20.85
-------------- ------- ------- ------
Income from Investment Operations:
Net investment income (loss)/(e)/......................... (0.03)/(f)/ (0.05)/(f)/ (0.08) 0.29/(f)/
Net realized and unrealized gain (loss) on investments and
foreign currency......................................... 1.57 (1.71) (5.71) (0.58)
-------------- ------- ------- ------
Total from Investment Operations.......................... 1.54 (1.76) (5.79) (0.29)
-------------- ------- ------- ------
Less Distributions Declared to Shareholders:
From net investment income................................ (0.01) (0.13) (0.19) --
From net realized gains................................... -- -- (2.28) (1.19)
-------------- ------- ------- ------
Total Distributions Declared to Shareholders.............. (0.01) (0.13) (2.47) (1.19)
-------------- ------- ------- ------
Net Asset Value, End of Period............................ $10.75 $ 9.22 $ 11.11 $19.37
============== ======= ======= ======
Total Return/(g) (h)/..................................... 16.71%/(i)/ (16.06)% (33.72)% (2.02)%
============== ======= ======= ======
Ratios to Average Net Assets/Supplemental Data:
Expenses/(j)/............................................. 2.37%/(k)/ 1.97% 1.91 % 1.83 %
Net investment income (loss)/(j)/......................... (0.37)%/(k)/ (0.45)% (0.46)% 1.33 %
Waiver/reimbursement...................................... 0.25%/(k)/ 0.25% 0.28% 0.34%
Portfolio turnover rate................................... 66%/(i)/ 110% 60 % 50 %
Net assets, end of period (000's)......................... $ 250 $ 54 $ 280 $ 483
---------
1999 (D)
CLASS B SHARES --------
Net Asset Value, Beginning of Period...................... $16.85
--------
Income from Investment Operations:
Net investment income (loss)/(e)/......................... (0.08)/(f)/
Net realized and unrealized gain (loss) on investments and
foreign currency......................................... 4.78
--------
Total from Investment Operations.......................... 4.70
--------
Less Distributions Declared to Shareholders:
From net investment income................................ (0.13)
From net realized gains................................... (0.57)
--------
Total Distributions Declared to Shareholders.............. (0.70)
--------
Net Asset Value, End of Period............................ $20.85
========
Total Return/(g) (h)/..................................... 28.74%
========
Ratios to Average Net Assets/Supplemental Data:
Expenses/(j)/............................................. 1.89%
Net investment income (loss)/(j)/......................... (0.38)%
Waiver/reimbursement...................................... 0.38%
Portfolio turnover rate................................... 45%
Net assets, end of period (000's)......................... $ 458
- -------------------
(a) On October 13, 2003, the Liberty International Equity Fund was redesignated
the Columbia International Equity Fund.
(b) The Fund has changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy International Equity Fund, Prime B shares
were redesignated Liberty International Equity Fund, Class B shares.
(d) The Fund began offering Prime B shares on November 1, 1998.
(e) Net investment income (loss) per share before reimbursement of certain
expenses for the period ended September 30, 2003 and the years ended
October 31, 2002, 2001, 2000 and 1999 was $(0.06), $(0.07), $(0.13), $0.22
and $(0.16), respectively.
(f) Per share data was calculated using average shares outstanding during the
period.
(g) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(h) Had the Advisor and /or any of its affiliates not waived or reimbursed 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.
See Notes to Financial Statements.
100
Columbia International Equity Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD IS AS FOLLOWS:
PERIOD ENDED
SEPTEMBER 30,
2003 (A)(B)(C)
CLASS C SHARES --------------
Net Asset Value, Beginning of Period................................ $ 9.33
--------------
Income from Investment Operations:
Net investment income/(d) (e)/...................................... 0.04
Net realized and unrealized gain on investments and foreign currency 1.35
--------------
Total from Investment Operations.................................... 1.39
--------------
Less Distributions Declared to Shareholders:
From net investment income.......................................... (0.01)
--------------
Net Asset Value, End of Period...................................... $10.71
==============
Total Return/(f) (g) (h)/........................................... 14.90%
==============
Ratios to Average Net Assets/Supplemental Data:
Expenses/(i) (j)/................................................... 2.07%
Net investment income/(i) (j)/...................................... 0.44%
Waiver/reimbursement/(j)/........................................... 1.68%
Portfolio turnover rate/(h)/........................................ 66 %
Net assets, end of period (000's)................................... $ 6
- -------------------
(a) On October 13, 2003, the Liberty International Equity Fund was redesignated
the Columbia International Equity Fund.
(b) The Fund has 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) Net investment income per share before reimbursement of certain expenses
for the period ended September 30, 2003 was $0.02.
(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) Had the Advisor and /or any of its affiliates not waived or reimbursed a
portion of expenses, total return would have been reduced.
(h) Not annualized.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
See Notes to Financial Statements.
101
Columbia International Equity Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
PERIOD ENDED YEAR ENDED OCTOBER 31
SEPTEMBER 30, -----------------------------------
2003 (A)(B)(C) 2002 2001 2000
CLASS G SHARES -------------- ------- ------- ------
Net Asset Value, Beginning of Period...................... $ 9.16 $ 11.04 $ 19.28 $20.80
-------------- ------- ------- ------
Income from Investment Operations:
Net investment income (loss)/(e)/......................... (0.03)/(f)/ (0.10)/(f)/ (0.10) 0.22/(f)/
Net realized and unrealized gain (loss) on investments and
foreign currency......................................... 1.54 (1.70) (5.72) (0.55)
-------------- ------- ------- ------
Total from Investment Operations.......................... 1.51 (1.80) (5.82) (0.33)
-------------- ------- ------- ------
Less Distributions Declared to Shareholders:
From net investment income................................ -- (0.08) (0.14) --
From net realized gains................................... -- -- (2.28) (1.19)
-------------- ------- ------- ------
Total Distributions Declared to Shareholders.............. -- (0.08) (2.42) (1.19)
-------------- ------- ------- ------
Net Asset Value, End of Period............................ $10.67 $ 9.16 $ 11.04 $19.28
============== ======= ======= ======
Total Return/(g) (h)/..................................... 16.48%/(i)/ (16.55)% (33.95)% (2.22)%
============== ======= ======= ======
Ratios to Average Net Assets/Supplemental Data:
Expenses/(j)/............................................. 2.41%/(k)/ 2.46% 2.34 % 2.14 %
Net investment income (loss)/(j)/......................... (0.31)%/(k)/ (0.94)% (0.89)% 1.02 %
Waiver/reimbursement...................................... 0.49%/(k)/ 0.51% 0.32 % 0.50%
Portfolio turnover rate................................... 66%/(i)/ 110% 60 % 50 %
Net assets, end of period (000's)......................... $4,976 $ 4,913 $ 6,988 $8,297
---------
1999 (D)
CLASS G SHARES --------
Net Asset Value, Beginning of Period...................... $16.85
--------
Income from Investment Operations:
Net investment income (loss)/(e)/......................... (0.09)/(f)/
Net realized and unrealized gain (loss) on investments and
foreign currency......................................... 4.74
--------
Total from Investment Operations.......................... 4.65
--------
Less Distributions Declared to Shareholders:
From net investment income................................ (0.13)
From net realized gains................................... (0.57)
--------
Total Distributions Declared to Shareholders.............. (0.70)
--------
Net Asset Value, End of Period............................ $20.80
========
Total Return/(g) (h)/..................................... 28.41%
========
Ratios to Average Net Assets/Supplemental Data:
Expenses/(j)/............................................. 1.96%
Net investment income (loss)/(j)/......................... (0.45)%
Waiver/reimbursement...................................... 0.74%
Portfolio turnover rate................................... 45%
Net assets, end of period (000's)......................... $2,189
- -------------------
(a) On October 13, 2003, the Liberty International Equity Fund was redesignated
the Columbia International Equity Fund.
(b) The Fund has changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy International Equity Fund, Retail B shares
were redesignated Liberty International Equity Fund, Class G shares.
(d) The Fund began issuing Class G shares on November 1, 1998.
(e) Net investment income (loss) per share before reimbursement of certain
expenses for the period ended September 30, 2003 and the years ended
October 31, 2002, 2001, 2000 and 1999 was $(0.07), $(0.15), $(0.14), $0.11
and $(0.25), respectively.
(f) Per share data was calculated using average shares outstanding during the
period.
(g) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(h) Had the Advisor and /or any of its affiliates not waived or reimbursed 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.
See Notes to Financial Statements.
102
Columbia International Equity Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
PERIOD ENDED YEAR ENDED OCTOBER 31
SEPTEMBER 30, ---------------------------------------------------------
2003 (A)(B)(C) 2002 2001 2000 1999 1998
CLASS T SHARES -------------- ------- ------- -------- ------- -------
Net Asset Value, Beginning of Period... $ 9.24 $ 11.16 $ 19.44 $ 20.86 $ 16.75 $ 15.18
-------------- ------- ------- -------- ------- -------
Income from Investment Operations:
Net investment income/(d)/............. 0.05/(e)/ 0.01/(e)/ 0.03 0.41/(e)/ 0.01/(e)/ 0.07
Net realized and unrealized (gain) loss
on investments and foreign
currency.............................. 1.55 (1.73) (5.75) (0.59) 4.72 1.93
-------------- ------- ------- -------- ------- -------
Total from Investment Operations....... 1.60 (1.72) (5.72) (0.18) 4.73 2.00
-------------- ------- ------- -------- ------- -------
Less Distributions Declared to
Shareholders:
From net investment income............. (0.06) (0.20) (0.28) (0.05) (0.05) (0.07)
From net realized gains................ -- -- (2.28) (1.19) (0.57) (0.36)
-------------- ------- ------- -------- ------- -------
Total Distributions Declared to
Shareholders.......................... (0.06) (0.20) (2.56) (1.24) (0.62) (0.43)
-------------- ------- ------- -------- ------- -------
Net Asset Value, End of Period......... $ 10.78 $ 9.24 $ 11.16 $ 19.44 $ 20.86 $ 16.75
============== ======= ======= ======== ======= =======
Total Return/(f) (g)/.................. 17.45%/(h)/ (15.75)% (33.35)% (1.49)% 29.04% 13.64 %
============== ======= ======= ======== ======= =======
Ratios to Average Net Assets/
Supplemental Data:
Expenses/(i)/.......................... 1.55%/(j)/ 1.42 % 1.34 % 1.32 % 1.48 % 1.48 %
Net investment income/(i)/............. 0.54%/(j)/ 0.10 % 0.11 % 1.83 % 0.03 % 0.39 %
Waiver/reimbursement................... 0.36%/(j)/ 0.37 % 0.30 % 0.25 % 0.25 % 0.25 %
Portfolio turnover rate................ 66%/(h)/ 110 % 60 % 50 % 45 % 49 %
Net assets, end of period (000's)...... $42,195 $43,095 $65,749 $120,351 $89,327 $66,541
- -------------------
(a) On October 13, 2003, the Liberty International Equity Fund was redesignated
the Columbia International Equity Fund.
(b) The Fund has changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy International Equity Fund, Retail A shares
were redesignated Liberty International Equity Fund, Class T shares.
(d) Net investment income per share before reimbursement of certain expenses
for the period ended September 30, 2003 and the years ended October 31,
2002, 2001, 2000, 1999 and 1998 was $0.03, $(0.03), $(0.05), $0.35, $(0.04)
and $0.03, respectively.
(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) Had the Advisor and /or any of its affiliates not waived or reimbursed a
portion of expenses, total return would have been reduced.
(h) Not annualized.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
See Notes to Financial Statements.
103
Columbia International Equity Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
PERIOD ENDED YEAR ENDED OCTOBER 31,
CLASS Z SHARES SEPTEMBER 30, ---------------------------------------------------------
2003 (A)(B)(C) 2002 2001 2000 1999 1998
-------------- -------- -------- -------- -------- --------
Net Asset Value, Beginning of Period... $ 9.43 $ 11.36 $ 19.74 $ 21.18 $ 17.00 $ 15.33
-------------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income/(d)/............. 0.10/(e)/ 0.06/(e)/ 0.07 0.51 /(e)/ 0.10 0.14
Net realized and unrealized (gain) loss
on investments and foreign
currency.............................. 1.59 (1.74) (5.82) (0.60) 4.80 1.98
-------------- -------- -------- -------- -------- --------
Total from Investment Operations....... 1.69 (1.68) (5.75) (0.09) 4.90 2.12
-------------- -------- -------- -------- -------- --------
Less Distributions Declared to
Shareholders:
From net investment income............. (0.11) (0.25) (0.35) (0.16) (0.15) (0.09)
From net realized gains................ -- -- (2.28) (1.19) (0.57) (0.36)
-------------- -------- -------- -------- -------- --------
Total Distributions Declared to
Shareholders.......................... (0.11) (0.25) (2.63) (1.35) (0.72) (0.45)
-------------- -------- -------- -------- -------- --------
Redemption fees:
Redemption fees added to paid-in
capital............................... --/(f)/ -- -- -- -- --
-------------- -------- -------- -------- -------- --------
Net Asset Value, End of Period......... $ 11.01 $ 9.43 $ 11.36 $ 19.74 $ 21.18 $ 17.00
============== ======== ======== ======== ======== ========
Total Return/(g) (h)/.................. 18.08%/(i)/ (15.26)% (33.00)% (1.08)% 29.71 % 14.32 %
============== ======== ======== ======== ======== ========
Ratios to Average Net Assets/
Supplemental Data:
Expenses/(j)/.......................... 0.97 %/(k)/ 0.94 % 0.90 % 0.87 % 0.97 % 0.96 %
Net investment income/(j)/............. 1.11 %/(k)/ 0.58 % 0.55 % 2.28 % 0.54 % 0.91 %
Waiver/reimbursement................... 0.25 %/(k)/ 0.27 % 0.26 % 0.25 % 0.25 % 0.25 %
Portfolio turnover rate................ 66 %/(i)/ 110 % 60 % 50 % 45 % 49 %
Net assets, end of period (000's)...... $346,889 $374,119 $524,704 $912,555 $501,776 $345,692
- -------------------
(a) On October 13, 2003, the Liberty International Equity Fund was redesignated
the Columbia International Equity Fund.
(b) The Fund has changed its fiscal year end from October 31 to September 30.
(c) On November 18, 2002, the Galaxy International Equity Fund, Trust shares
were redesignated Liberty International Equity Fund, Class Z shares.
(d) Net investment income per share before reimbursement of certain expenses
for the period ended September 30, 2003 and the years ended October 31,
2002, 2001, 2000, 1999 and 1998 was $0.08, $0.04, $0.04, $0.45, $0.06 and
$0.10, respectively.
(e) Per share data was calculated using average shares outstanding during the
period.
(f) Rounds to less than $0.01 per share.
(g) Total return at net asset value assuming all distributions reinvested.
(h) Had the Advisor and /or any of its affiliates not waived or reimbursed 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.
See Notes to Financial Statements.
104
[GRAPHIC]
Columbia Large Cap Core Fund
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
PERIOD ENDED YEAR ENDED OCTOBER 31,
SEPTEMBER 30, ---------------------------------------------------
2003 (A)(B)(C) 2002 2001 2000 1999 (D)
CLASS A SHARES -------------- ------- ------- ------ --------
Net Asset Value, Beginning of Period.............. $10.08 $ 12.74 $ 16.41 $16.00 $14.88
-------------- ------- ------- ------ --------
Income from Investment Operations:
Net investment income/(e)/........................ 0.03/(f)/ 0.03/(f)/ 0.02 0.04 0.11/(f)/
Net realized and unrealized gain (loss) on
investments...................................... 1.16 (2.23) (2.38) 1.34 2.03
-------------- ------- ------- ------ --------
Total from Investment Operations.................. 1.19 (2.20) (2.36) 1.38 2.14
-------------- ------- ------- ------ --------
Less Distributions Declared to Shareholders:
From net investment income........................ (0.05) (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...... (0.05) (0.46) (1.31) (0.97) (1.02)
-------------- ------- ------- ------ --------
Net Asset Value, End of Period.................... $11.22 $ 10.08 $ 12.74 $16.41 $16.00
============== ======= ======= ====== ========
Total Return/(h)/................................. 11.82%/(i)/ (18.14)%/(j)/ (15.34)%/(j)/ 9.27%/(j)/ 14.81%/(j)/
============== ======= ======= ====== ========
Ratios to Average Net Assets/Supplemental Data:
Expenses/(k)/..................................... 1.48%/(l)/ 1.28% 1.19% 1.14% 1.15%
Net investment income/(k)/........................ 0.37%/(l)/ 0.25% 0.22% 0.30% 0.66%
Waiver/reimbursement.............................. -- 0.24% 0.03% 0.10% 0.15%
Portfolio turnover rate........................... 55%/(i)/ 13% 19% 42% 20%
Net assets, end of period (000's)................. $7,570 $ 15 $ 60 $ 156 $ 150
- -------------------
(a) On October 13, 2003, the Liberty Large Cap Core Fund was redesignated the
Columbia Large Cap Core Fund.
(b) The Fund has 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 issuing Prime A shares on November 1, 1998.
(e) Net investment income per share before reimbursement of certain expenses
for the period ended September 30, 2003 and the years ended October 31,
2002, 2001, 2000 and 1999 was $0.04 $0.01, $0.02, $0.03 and $0.09,
respectively.
(f) Per share data was calculated using average shares outstanding during the
period.
(g) Rounds to less than $0.01.
(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 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.
See Notes to Financial Statements.
105
Columbia Large Cap Core Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
PERIOD ENDED YEAR ENDED OCTOBER 31,
SEPTEMBER 30, ------------------------------------------
2003 (A)(B)(C) 2002 2001 2000
CLASS B SHARES -------------- ------- ------- ------
Net Asset Value, Beginning of Period.................. $ 9.90 $ 12.59 $ 16.32 $15.97
-------------- ------- ------- ------
Income from Investment Operations:
Net investment loss/(e)/.............................. (0.04)/(f)/ (0.06)/(f)/ (0.07) (0.07)
Net realized and unrealized gain (loss) on investments 1.14 (2.19) (2.38) 1.33
-------------- ------- ------- ------
Total from Investment Operations...................... 1.10 (2.25) (2.45) 1.26
-------------- ------- ------- ------
Less Distributions Declared to Shareholders:
From net investment income............................ (0.01) -- -- --
From net realized gains............................... -- (0.44) (1.28) (0.91)
-------------- ------- ------- ------
Total Distributions Declared to Shareholders.......... (0.01) (0.44) (1.28) (0.91)
-------------- ------- ------- ------
Net Asset Value, End of Period........................ $10.99 $ 9.90 $ 12.59 $16.32
============== ======= ======= ======
Total Return/(g)/..................................... 11.12%/(h)/ (18.75)%/(i)/ (15.95)%/(i)/ 8.38%/(i)/
============== ======= ======= ======
Ratios to Average Net Assets/Supplemental Data:
Expenses/(j)/......................................... 2.19%/(k)/ 2.02% 1.96% 1.89%
Net investment loss/(j)/.............................. (0.38)%/(k)/ (0.49)% (0.55)% (0.45)%
Waiver/reimbursement.................................. -- 0.02% 0.04% 0.18%
Portfolio turnover rate............................... 55%/(h)/ 13% 19% 42%
Net assets, end of period (000's)..................... $1,755 $ 55 $ 109 $ 129
---------
1999 (D)
CLASS B SHARES --------
Net Asset Value, Beginning of Period.................. $14.88
--------
Income from Investment Operations:
Net investment loss/(e)/.............................. (0.01)/(f)/
Net realized and unrealized gain (loss) on investments 2.03
--------
Total from Investment Operations...................... 2.02
--------
Less Distributions Declared to Shareholders:
From net investment income............................ (0.02)
From net realized gains............................... (0.91)
--------
Total Distributions Declared to Shareholders.......... (0.93)
--------
Net Asset Value, End of Period........................ $15.97
========
Total Return/(g)/..................................... 13.98%/(i)/
========
Ratios to Average Net Assets/Supplemental Data:
Expenses/(j)/......................................... 1.90%
Net investment loss/(j)/.............................. (0.09)%
Waiver/reimbursement.................................. 0.27%
Portfolio turnover rate............................... 20%
Net assets, end of period (000's)..................... $ 129
- -------------------
(a) On October 13, 2003, the Liberty Large Cap Core Fund was redesignated the
Columbia Large Cap Core Fund.
(b) The Fund has 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 issuing Prime B shares on November 1, 1998.
(e) Net investment loss per share before reimbursement of certain expenses for
the period ended September 30, 2003 and the years ended October 31, 2002,
2001, 2000 and 1999 was $(0.03), $(0.06), $(0.07), $(0.10) and $(0.05),
respectively.
(f) Per share data was calculated using average shares outstanding during the
period.
(g) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(h) Not annualized.
(i) Had the 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.
See Notes to Financial Statements.
106
Columbia Large Cap Core Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD IS AS FOLLOWS:
PERIOD ENDED
SEPTEMBER 30,
2003 (A)(B)(C)
CLASS C SHARES --------------
Net Asset Value, Beginning of Period.............. $10.21
--------------
Income from Investment Operations:
Net investment loss/(d)/.......................... (0.04)
Net realized and unrealized gain on investments... 0.83
--------------
Total from Investment Operations.................. 0.79
--------------
Less Distributions Declared to Shareholders:
From net investment income........................ (0.01)
--------------
Net Asset Value, End of Period.................... $10.99
==============
Total Return/(e)(f)/.............................. 7.74%
==============
Ratios to Average Net Assets/Supplemental Data:
Expenses/(g)(h)/.................................. 2.18%
Net investment loss/(g)(h) /...................... (0.42)%
Portfolio turnover rate/(f)/...................... 55%
Net assets, end of period (000's)................. $ 223
- -------------------
(a) On October 13, 2003, the Liberty Large Cap Core Fund was redesignated the
Columbia Large Cap Core Fund.
(b) The Fund has 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) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
See Notes to Financial Statements.
107
Columbia Large Cap Core Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
PERIOD ENDED YEAR ENDED OCTOBER 31,
SEPTEMBER 30, --------------------------------------------------------
2003 (A)(B)(C) 2002 2001 2000 1999 1998
CLASS G SHARES -------------- ------- ------- ------- ------- -------
Net Asset Value, Beginning of Period...... $ 9.82 $ 12.50 $ 16.23 $ 15.90 $ 14.83 $ 16.23
-------------- ------- ------- ------- ------- -------
Income from Investment Operations:
Net investment loss/(d)/.................. (0.02)/(e)/ (0.06)/(e)/ (0.09) (0.10) (0.04)/(e)/ --/(f)/
Net realized and unrealized gain (loss) on
investments.............................. 1.10 (2.18) (2.36) 1.34 2.02 1.31
-------------- ------- ------- ------- ------- -------
Total from Investment Operations.......... 1.08 (2.24) (2.45) 1.24 1.98 1.31
-------------- ------- ------- ------- ------- -------
Less Distributions Declared to
Shareholders:
In excess of net investment income........ (0.01) -- -- -- -- (0.03)
From net realized gains................... -- (0.44) (1.28) (0.91) (0.91) (2.68)
-------------- ------- ------- ------- ------- -------
Total Distributions Declared to
Shareholders............................. (0.01) (0.44) (1.28) (0.91) (0.91) (2.71)
-------------- ------- ------- ------- ------- -------
Net Asset Value, End of Period............ $ 10.89 $ 9.82 $ 12.50 $ 16.23 $ 15.90 $ 14.83
============== ======= ======= ======= ======= =======
Total Return/(g)/......................... 11.00%/(h) (i)/ (18.80)%/(i)/ (16.11)% 8.35% 13.72%/(i)/ 9.09%
============== ======= ======= ======= ======= =======
Ratios to Average Net Assets/
Supplemental Data:
Expenses/(j)/............................. 2.19%/(k)/ 2.08% 2.05% 2.04% 2.03% 2.02%
Net investment loss/(j)/.................. (0.28)%/(k)/ (0.55)% (0.64)% (0.60)% (0.22)% 0.01%
Waiver/reimbursement...................... 0.05%/(k)/ 0.02% -- -- 0.01% --
Portfolio turnover rate................... 55%/(h)/ 13% 19% 42% 20% 38%
Net assets, end of period (000's)......... $28,917 $31,407 $48,512 $61,857 $62,366 $53,216
- -------------------
(a) On October 13, 2003, the Liberty Large Cap Core Fund was redesignated the
Columbia Large Cap Core Fund.
(b) The Fund has 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) Net investment loss per share before reimbursement of certain expenses for
the period ended September 30, 2003 and the years ended October 31, 2002,
2001, 2000, 1999 and 1998 was $(0.02), $(0.07), $(0.09), $(0.10), $(0.04)
and $0.00, respectively.
(e) Per share data was calculated using average shares outstanding during the
period.
(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) Not annualized.
(i) Had the 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.
See Notes to Financial Statements.
108
Columbia Large Cap Core Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
PERIOD ENDED YEAR ENDED OCTOBER 31,
SEPTEMBER 30, -------------------------------------------------------------
2003 (A)(B)(C) 2002 2001 2000 1999
CLASS T SHARES -------------- -------- -------- -------- --------
Net Asset Value, Beginning of Period...... $ 10.05 $ 12.70 $ 16.37 $ 15.98 $ 14.87
-------------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income/(d)/................ 0.04/(e)/ 0.02/(e)/ 0.02 0.02 0.08/(e)/
Net realized and unrealized gain (loss) on
investments.............................. 1.14 (2.22) (2.39) 1.33 2.02
-------------- -------- -------- -------- --------
Total from Investment Operations.......... 1.18 (2.20) (2.37) 1.35 2.10
-------------- -------- -------- -------- --------
Less Distributions Declared to
Shareholders:
From net investment income................ (0.05) (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............................. (0.05) (0.45) (1.30) (0.96) (0.99)
-------------- -------- -------- -------- --------
Net Asset Value, End of Period............ $ 11.18 $ 10.05 $ 12.70 $ 16.37 $ 15.98
============== ======== ======== ======== ========
Total Return/(g)/......................... 11.76%/(h)/ (18.16)%/(i)/ (15.46)%/(i)/ 9.06%/(i)/ 14.56%/(i)/
============== ======== ======== ======== ========
Ratios to Average Net Assets/
Supplemental Data:
Expenses/(j)/............................. 1.46%/(k)/ 1.35% 1.34% 1.28% 1.28%
Net investment income/(j)/................ 0.45%/(k)/ 0.18% 0.07% 0.16% 0.53%
Waiver/reimbursement...................... -- 0.01% 0.02% 0.09% 0.10%
Portfolio turnover rate................... 55%/(h)/ 13% 19% 42% 20%
Net assets, end of period (000's)......... $185,938 $180,269 $259,884 $217,423 $232,110
---------
1998
CLASS T SHARES --------
Net Asset Value, Beginning of Period...... $ 16.24
--------
Income from Investment Operations:
Net investment income/(d)/................ 0.12
Net realized and unrealized gain (loss) on
investments.............................. 1.32
--------
Total from Investment Operations.......... 1.44
--------
Less Distributions Declared to
Shareholders:
From net investment income................ (0.13)
In excess of net investment income........ --
From net realized gains................... (2.68)
--------
Total Distributions Declared to
Shareholders............................. (2.81)
--------
Net Asset Value, End of Period............ $ 14.87
========
Total Return/(g)/......................... 9.93%/(i)/
========
Ratios to Average Net Assets/
Supplemental Data:
Expenses/(j)/............................. 1.28%
Net investment income/(j)/................ 0.75%
Waiver/reimbursement...................... 0.07%
Portfolio turnover rate................... 38%
Net assets, end of period (000's)......... $214,110
- -------------------
(a) On October 13, 2003, the Liberty Large Cap Core Fund was redesignated the
Columbia Large Cap Core Fund.
(b) The Fund has 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) Net investment income per share before reimbursement of certain expenses
for the period ended September 30, 2003 and the years ended October 31,
2002, 2001, 2000, 1999 and 1998 was $0.04, $0.02, $0.02, $0.01, $0.07 and
$0.10, respectively.
(e) Per share data was calculated using average shares outstanding during the
period.
(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 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.
See Notes to Financial Statements.
109
Columbia Large Cap Core Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
PERIOD ENDED YEAR ENDED OCTOBER 31,
SEPTEMBER 30, ------------------------------------------------------------------
2003 (A)(B)(C) 2002 2001 2000 1999 1998
CLASS Z SHARES -------------- -------- -------- -------- -------- --------
Net Asset Value, Beginning of Period.... $ 10.11 $ 12.77 $ 16.43 $ 16.02 $ 14.90 $ 16.28
-------------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income/(d)/.............. 0.08/(e)/ 0.07/(e)/ 0.06 0.08 0.13/(e)/ 0.15
Net realized and unrealized gain (loss)
on investments......................... 1.15 (2.23) (2.39) 1.32 2.02 1.31
-------------- -------- -------- -------- -------- --------
Total from Investment Operations........ 1.23 (2.16) (2.33) 1.40 2.15 1.46
-------------- -------- -------- -------- -------- --------
Less Distributions Declared to
Shareholders:
From net investment income.............. (0.09) (0.06) (0.05) (0.08) (0.12) (0.16)
In excess of net investment income...... -- -- --/(f)/ --/(f)/ -- --
From net realized gains................. -- (0.44) (1.28) (0.91) (0.91) (2.68)
-------------- -------- -------- -------- -------- --------
Total Distributions Declared to
Shareholders........................... (0.09) (0.50) (1.33) (0.99) (1.03) (2.84)
-------------- -------- -------- -------- -------- --------
Net Asset Value, End of Period.......... $ 11.25 $ 10.11 $ 12.77 $ 16.43 $ 16.02 $ 14.90
============== ======== ======== ======== ======== ========
Total Return/(g)/....................... 12.20%/(h)/ (17.85)%/(i)/ (15.12)% 9.38% 14.85% 10.10%
============== ======== ======== ======== ======== ========
Ratios to Average Net Assets/
Supplemental Data:
Expenses/(j)/........................... 1.03%/(k)/ 0.97% 0.97% 1.00% 1.05% 1.03%
Net investment income/(j)/.............. 0.89%/(k)/ 0.56% 0.44% 0.44% 0.76% 1.00%
Waiver/reimbursement.................... -- 0.03% -- -- -- --
Portfolio turnover rate................. 55%/(h)/ 13% 19% 42% 20% 38%
Net assets, end of period (000's)....... $190,195 $340,496 $460,302 $678,398 $309,106 $254,060
- -------------------
(a) On October 13, 2003, the Liberty Large Cap Core Fund was redesignated the
Columbia Large Cap Core Fund.
(b) The Fund has 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) Net investment income per share before reimbursement of certain expenses
for the period ended September 30, 2003 and the years ended October 31,
2002, 2001, 2000, 1999 and 1998 was $0.08, $0.06, $0.06, $0.08, $0.13 and
$0.15, respectively.
(e) Per share data was calculated using average shares outstanding during the
period.
(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 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.
See Notes to Financial Statements.
110
[GRAPHIC]
Columbia Small Cap Fund
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
PERIOD ENDED YEAR ENDED OCTOBER 31,
SEPTEMBER 30, ---------------------------------------------
2003 (A)(B)(C) 2002 2001 2000 1999 (D)
CLASS A SHARES -------------- ------ ------ ------ --------
Net Asset Value, Beginning of Period.................. $ 12.64 $14.05 $14.33 $13.04 $13.59
-------------- ------ ------ ------ --------
Income from Investment Operations:
Net investment income (loss)/(e)/..................... (0.04)/(f)/ (0.03)/(f)/ 0.02/(f)/ 0.05/(f)/ 0.03
Net realized and unrealized (gain) loss on investments 3.35 (0.07) 1.61 2.64 0.73
-------------- ------ ------ ------ --------
Total from Investment Operations...................... 3.31 (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............................... (0.65) (1.31) (1.87) (1.36) (1.27)
-------------- ------ ------ ------ --------
Total Distributions Declared to Shareholders.......... (0.65) (1.31) (1.91) (1.40) (1.31)
-------------- ------ ------ ------ --------
Net Asset Value, End of Period........................ $ 15.30 $12.64 $14.05 $14.33 $13.04
============== ====== ====== ====== ========
Total Return/(g) (h)/................................. 27.25%/(i)/ (1.73)% 12.87% 22.26% 5.80%
============== ====== ====== ====== ========
Ratios to Average Net Assets/Supplemental Data:
Expenses/(j)/......................................... 1.22%/(k)/ 1.29 % 1.23 % 1.16 % 1.18 %
Net investment income (loss)/(j)/..................... (0.28)%/(k)/ (0.19)% 0.17 % 0.36% 0.26%
Waiver/reimbursement.................................. 0.02%/(k)/ 0.01% 0.04% 0.16% 0.22%
Portfolio turnover rate............................... 19 %/(i)/ 23 % 46 % 43 % 42 %
Net assets, end of period (000's)..................... $57,462 $ 210 $ 168 $ 189 $ 175
- -------------------
(a) On October 13, 2003, the Liberty Small Cap Fund was redesignated the
Columbia Small Cap Fund.
(b) The Fund has 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) Net investment income (loss) per share before reimbursement of certain
expenses for the period ended September 30, 2003 and the years ended
October 31, 2002, 2001, 2000 and 1999 was $(0.04), $(0.03), $0.02, $0.03
and $0.00, respectively.
(f) Per share data was calculated using average shares outstanding during the
period.
(g) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(h) Had the Advisor and/or any of its affiliates not waived or reimbursed 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.
See Notes to Financial Statements.
111
Columbia Small Cap Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
PERIOD ENDED YEAR ENDED OCTOBER 31,
SEPTEMBER 30, --------------------------------------------------
2003 (A)(B)(C) 2002 2001 2000
CLASS B SHARES -------------- ---------- ---------- ----------
Net Asset Value, Beginning of Period.................. $ 12.31 $ 13.82 $ 14.19 $ 12.98
-------------- ---------- ---------- ----------
Income from Investment Operations:
Net investment loss/(e)/.............................. (0.15)/(f)/ (0.14)/(f)/ (0.10)/(f)/ (0.05)/(f)/
Net realized and unrealized (gain) loss on investments 3.24 (0.06) 1.60 2.62
-------------- ---------- ---------- ----------
Total from Investment Operations...................... 3.09 (0.20) 1.50 2.57
-------------- ---------- ---------- ----------
Less Distributions Declared to Shareholders:
From net investment income............................ -- -- -- --
From net realized gains............................... (0.65) (1.31) (1.87) (1.36)
-------------- ---------- ---------- ----------
Total Distributions Declared to Shareholders.......... (0.65) (1.31) (1.87) (1.36)
-------------- ---------- ---------- ----------
Net Asset Value, End of Period........................ $ 14.75 $ 12.31 $ 13.82 $ 14.19
============== ========== ========== ==========
Total Return/(g) (h)/................................. 26.14%/(i)/ (2.55)% 11.91% 21.46%
============== ========== ========== ==========
Ratios to Average Net Assets/Supplemental Data:
Expenses/(j)/......................................... 2.10%/(k)/ 2.12 % 2.08% 1.93 %
Net investment loss/(j)/.............................. (1.14)%/(k)/ (1.02)% (0.68)% (0.41)%
Waiver/reimbursement.................................. 0.02%/(k)/ 0.01 % 0.07% 0.53%
Portfolio turnover rate............................... 19%/(i)/ 23 % 46 % 43 %
Net assets, end of period (000's)..................... $11,122 $ 282 $ 198 $ 170
-----------
1999 (D)
CLASS B SHARES ----------
Net Asset Value, Beginning of Period.................. $ 13.59
----------
Income from Investment Operations:
Net investment loss/(e)/.............................. (0.05)
Net realized and unrealized (gain) loss on investments 0.71
----------
Total from Investment Operations...................... 0.66
----------
Less Distributions Declared to Shareholders:
From net investment income............................ --
From net realized gains............................... (1.27)
----------
Total Distributions Declared to Shareholders.......... (1.27)
----------
Net Asset Value, End of Period........................ $ 12.98
==========
Total Return/(g) (h)/................................. 4.96%
==========
Ratios to Average Net Assets/Supplemental Data:
Expenses/(j)/......................................... 1.93 %
Net investment loss/(j)/.............................. (0.49)%
Waiver/reimbursement.................................. 0.56%
Portfolio turnover rate............................... 42 %
Net assets, end of period (000's)..................... $ 190
- -------------------
(a) On October 13, 2003, the Liberty Small Cap Fund was redesignated the
Columbia Small Cap Fund.
(b) The Fund has 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) Net investment loss per share before reimbursement of certain expenses for
the period ended September 30, 2003 and the years ended October 31, 2002,
2001, 2000, and 1999 was $(0.15), $(0.14), $(0.11), $(0.13) and $(0.10),
respectively.
(f) Per share data was calculated using average shares outstanding during the
period.
(g) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(h) Had the Advisor and/or any of its affiliates not waived or reimbursed 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.
See Notes to Financial Statements.
112
Columbia Small Cap Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD IS AS FOLLOWS:
PERIOD
ENDED
SEPTEMBER 30,
2003 (A)(B)(C)
CLASS C SHARES --------------
Net Asset Value, Beginning of Period........... $ 12.55
--------------
Income from Investment Operations:
Net investment loss/(d) (e)/................... (0.14)
Net realized and unrealized gain on investments 3.01
--------------
Total from Investment Operations............... 2.87
--------------
Less Distributions Declared to Shareholders:
From net realized gains........................ (0.65)
--------------
Net Asset Value, End of Period................. $ 14.77
==============
Total Return/(f) (g) (h)/...................... 23.90%
==============
Ratios to Average Net Assets/Supplemental Data:
Expenses/(i) (j)/.............................. 2.03 %
Net investment income (loss)/(i) (j)/.......... (1.10)%
Waiver/reimbursement/(i) (j)/.................. 0.02 %
Portfolio turnover rate/(h)/................... 19 %
Net assets, end of period (000's).............. $12,670
- -------------------
(a) On October 13, 2003, the Liberty Small Cap Fund was redesignated the
Columbia Small Cap Fund.
(b) The Fund has 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 before reimbursement of certain expenses for
the period ended September 30, 2003 was $(0.14).
(f) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(g) Had the Advisor and/or any of its affiliates not waived or reimbursed a
portion of expenses, total return would have been reduced.
(h) Not annualized.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
See Notes to Financial Statements.
113
Columbia Small Cap Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
PERIOD ENDED YEAR ENDED OCTOBER 31,
SEPTEMBER 30, ------------------------------------------------
2003 (A)(B)(C) 2002 2001 2000 1999 (D)
CLASS G SHARES -------------- ------ ------ ------ --------
Net Asset Value,
Beginning of Period..... $ 12.22 $13.72 $14.13 $12.96 $13.59
-------------- ------ ------ ------ --------
Income from Investment
Operations:
Net investment loss/(e)/. (0.12)/(f)/ (0.14)/(f)/ (0.11)/(f)/ (0.10)/(f)/ (0.04)
Net realized and
unrealized gain (loss)
on investments.......... 3.18 (0.05) 1.57 2.63 0.68
-------------- ------ ------ ------ --------
Total from Investment
Operations.............. 3.06 (0.19) 1.46 2.53 0.64
-------------- ------ ------ ------ --------
Less Distributions
Declared to
Shareholders:
From net investment
income.................. -- -- -- -- --
From net realized gains.. (0.65) (1.31) (1.87) (1.36) (1.27)
-------------- ------ ------ ------ --------
Total Distributions
Declared to Shareholders (0.65) (1.31) (1.87) (1.36) (1.27)
-------------- ------ ------ ------ --------
Net Asset Value, End of
Period.................. $ 14.63 $12.22 $13.72 $14.13 $12.96
============== ====== ====== ====== ========
Total Return/(g)/........ 26.09%/(h)(i)/ (2.49)%/(i)/ 11.73% 21.06%/(i)/ 4.80%/(i)/
============== ====== ====== ====== ========
Ratios to Average Net
Assets/Supplemental
Data:
Expenses/(j)/............ 2.10%/(k)/ 2.12 % 2.21 % 2.23 % 2.10 %
Net investment loss/(j)/. (1.03)%/(k)/ (1.02)% (0.80)% (0.71)% (0.66)%
Waiver/reimbursement..... 0.02%/(k)/ 0.01 % -- 0.18 % 0.78%
Portfolio turnover rate.. 19 %/(h)/ 23 % 46 % 43 % 42 %
Net assets, end of
period (000's).......... $10,353 $9,046 $5,278 $2,838 $1,637
- -------------------
(a) On October 13, 2003, the Liberty Small Cap Fund was redesignated the
Columbia Small Cap Fund.
(b) The Fund has 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) Net investment income (loss) per share before reimbursement of certain
expenses for the period ended September 30, 2003 and the years ended
October 31, 2002, 2001, 2000, and 1999 was $(0.12), $(0.14), $(0.11),
$(0.12) and $(0.09), respectively.
(f) Per share data was calculated using average shares outstanding during the
period.
(g) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(h) Not annualized.
(i) Had the 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.
See Notes to Financial Statements.
114
Columbia Small Cap Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
PERIOD ENDED YEAR ENDED OCTOBER 31,
SEPTEMBER 30, ---------------------------------------------------------------------
2003 (A)(B)(C) 2002 2001 2000 1999 1998
CLASS T SHARES -------------- -------- -------- ------- ------- -------
Net Asset Value,
Beginning of Period $ 12.55 $ 13.96 $ 14.25 $ 12.98 $ 13.53 $ 18.29
-------------- -------- -------- ------- ------- -------
Income from
Investment
Operations:
Net investment
income (loss)/(d)/. (0.03)/(e)/ (0.03)/(e)/ -- /(e) (f)/ 0.01/(e)/ 0.02 0.08
Net realized and
unrealized gain
(loss) on
investments........ 3.29 (0.07) 1.59 2.63 0.73 (2.08)
-------------- -------- -------- ------- ------- -------
Total from
Investment
Operations......... 3.26 (0.10) 1.59 2.64 0.75 (2.00)
-------------- -------- -------- ------- ------- -------
Less Distributions
Declared to
Shareholders:
From net investment
income............. -- -- (0.01) (0.01) (0.03) (0.08)
From net realized
gains.............. (0.65) (1.31) (1.87) (1.36) (1.27) (2.68)
-------------- -------- -------- ------- ------- -------
Total Distributions
Declared to
Shareholders....... (0.65) (1.31) (1.88) (1.37) (1.30) (2.76)
-------------- -------- -------- ------- ------- -------
Net Asset Value,
End of Period...... $ 15.16 $ 12.55 $ 13.96 $ 14.25 $ 12.98 $ 13.53
============== ======== ======== ======= ======= =======
Total Return/(g)/... 27.03%/(h) (i)/ (1.75)%/(h)/ 12.66 % 21.96%/(h)/ 5.68%/(h)/ (12.52)%/(h)/
============== ======== ======== ======= ======= =======
Ratios to Average
Net Assets/
Supplemental Data:
Expenses/(j)/....... 1.34%/(k)/ 1.33 % 1.42 % 1.44 % 1.31 % 1.31 %
Net investment
income (loss)/(j)/. (0.26)%/(k)/ (0.23)% (0.02)% 0.08 % 0.13 % 0.38 %
Waiver/reimbursement 0.02%/(k)/ 0.01 % -- 0.11 % 0.28 % 0.14 %
Portfolio turnover
rate............... 19 %/(i)/ 23 % 46 % 43 % 42 % 33 %
Net assets, end of
period (000's)..... $134,455 $115,468 $100,159 $87,457 $80,870 $87,781
- -------------------
(a) On October 13, 2003, the Liberty Small Cap Fund was redesignated the
Columbia Small Cap Fund.
(b) The Fund has 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) Net investment income (loss) per share before reimbursement of certain
expenses for the period ended September 30, 2003 and the years ended
October 31, 2002, 2001, 2000, 1999 and 1998 was $(0.03), $(0.03), $0.00,
$0.00, $(0.02) and $0.05, respectively.
(e) Per share data was calculated using average shares outstanding during the
period.
(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) Had the Advisor and/or any of its affiliates not waived or reimbursed 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.
See Notes to Financial Statements.
115
Columbia Small Cap Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
PERIOD ENDED YEAR ENDED OCTOBER 31,
SEPTEMBER 30, --------------------------------------------------------------
2003 (A)(B)(C) 2002 2001 2000 1999 1998
CLASS Z SHARES -------------- -------- -------- -------- -------- --------
Net Asset Value, Beginning of
Period............................ $ 12.75 $ 14.11 $ 14.38 $ 13.07 $ 13.61 $ 18.37
-------------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income/(d)/......... 0.02/(e)/ 0.03/(e)/ 0.07/(e)/ 0.08/(e)/ 0.05 0.11
Net realized and unrealized gain
(loss) on investments............. 3.34 (0.07) 1.60 2.65 0.74 (2.06)
-------------- -------- -------- -------- -------- --------
Total from Investment Operations... 3.36 (0.04) 1.67 2.73 0.79 (1.95)
-------------- -------- -------- -------- -------- --------
Less Distributions Declared to
Shareholders:
From net investment income......... (0.01) (0.01) (0.07) (0.06) (0.06) (0.13)
From net realized gains............ (0.65) (1.31) (1.87) (1.36) (1.27) (2.68)
-------------- -------- -------- -------- -------- --------
Total Distributions Declared to
Shareholders...................... (0.66) (1.32) (1.94) (1.42) (1.33) (2.81)
-------------- -------- -------- -------- -------- --------
Net Asset Value, End of Period..... $ 15.45 $ 12.75 $ 14.11 $ 14.38 $ 13.07 $ 13.61
============== ======== ======== ======== ======== ========
Total Return/(f)/.................. 27.44%/(g) (h)/ (1.26)%/(g)/ 13.20 % 22.62 % 6.02 % (12.07)%
============== ======== ======== ======== ======== ========
Ratios to Average Net
Assets/Supplemental Data:
Expenses/(i)/...................... 0.92%/(j)/ 0.90 % 0.92 % 0.94 % 0.97 % 0.96 %
Net investment income/(i)/......... 0.14%/(j)/ 0.20 % 0.48 % 0.58 % 0.47 % 0.73 %
Waiver/reimbursement............... 0.02%/(j)/ 0.01 % -- -- -- --
Portfolio turnover rate............ 19%/(h)/ 23 % 46 % 43 % 42 % 33 %
Net assets, end of period (000's).. $789,666 $485,197 $425,687 $332,703 $255,268 $202,385
- -------------------
(a) On October 13, 2003, the Liberty Small Cap Fund was redesignated the
Columbia Small Cap Fund.
(b) The Fund has 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) Net investment income per share before reimbursement of certain expenses
for the period ended September 30, 2003 and the years ended October 31,
2002, 2001, 2000, 1999 and 1998 was $0.02, $0.03, $0.07, $0.08, $0.05 and
$0.11, respectively.
(e) Per share data was calculated using average shares outstanding during the
period.
(f) Total return at net asset value assuming all distributions reinvested.
(g) Had the Advisor and/or any of its affiliates not waived or reimbursed a
portion of expenses, total return would have been reduced.
(h) Not annualized.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(j) Annualized.
See Notes to Financial Statements.
116
[GRAPHIC]
Columbia Small Company Equity Fund
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD IS AS FOLLOWS:
PERIOD ENDED
SEPTEMBER 30,
2003 (A)(B)(C)
CLASS A SHARES --------------
Net Asset Value, Beginning of Period........... $11.74
--------------
Income from Investment Operations:
Net investment loss/(d)/....................... (0.17)
Net realized and unrealized gain on investments 2.53
--------------
Total from Investment Operations............... 2.36
--------------
Net Asset Value, End of Period................. $14.10
--------------
Total Return/(e) (f)/.......................... 20.10%
==============
Ratios to Average Net Assets/Supplemental Data:
Expenses/(g) (h)/.............................. 1.62%
Net investment loss/(g) (h)/................... (1.42)%
Portfolio turnover rate/(f)/................... 123%
Net assets, end of period (000's).............. $ 384
- -------------------
(a) On October 13, 2003, the Liberty Small Company Equity Fund was redesignated
the Columbia Small Company Equity Fund.
(b) The Fund has 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 all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
See Notes to Financial Statements.
117
Columbia Small Company Equity Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD IS AS FOLLOWS:
PERIOD ENDED
SEPTEMBER 30,
2003 (A)(B)(C)
CLASS B SHARES --------------
Net Asset Value, Beginning of Period........... $11.13
--------------
Income from Investment Operations:
Net investment loss/(d)/....................... (0.25)
Net realized and unrealized gain on investments 2.38
--------------
Total from Investment Operations............... 2.13
--------------
Net Asset Value, End of Period................. $13.26
==============
Total Return/(e) (f)/.......................... 19.14%
==============
Ratios to Average Net Assets/Supplemental Data:
Expenses/(g) (h)/.............................. 2.47%
Net investment loss/(g) (h)/................... (2.24)%
Portfolio turnover rate/(f)/................... 123%
Net assets, end of period (000's).............. $ 203
- -------------------
(a) On October 13, 2003, the Liberty Small Company Equity Fund was redesignated
the Columbia Small Company Equity Fund.
(b) The Fund has 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 all distributions reinvested and
no contingent deferred sales charge.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
See Notes to Financial Statements.
118
Columbia Small Company Equity Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD IS AS FOLLOWS:
PERIOD ENDED
SEPTEMBER 30,
2003 (A)(B)(C)
CLASS C SHARES --------------
Net Asset Value, Beginning of Period........... $11.13
--------------
Income from Investment Operations:
Net investment loss/(d)/....................... (0.29)
Net realized and unrealized gain on investments 2.38
--------------
Total from Investment Operations............... 2.09
--------------
Net Asset Value, End of Period................. $13.22
==============
Total Return/(e)(f)/........................... 18.78%
==============
Ratios to Average Net Assets/Supplemental Data:
Expenses/(g)(h)/............................... 2.84%
Net investment loss/(g)(h)/.................... (2.59)%
Portfolio turnover rate/(f)/................... 123 %
Net assets, end of period (000's).............. $ 56
- -------------------
(a) On October 13, 2003, the Liberty Small Company Equity Fund was redesignated
the Columbia Small Company Equity Fund.
(b) The Fund has 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) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(h) Annualized.
See Notes to Financial Statements.
119
Columbia Small Company Equity Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
PERIOD ENDED YEAR ENDED OCTOBER 31,
SEPTEMBER 30, ---------------------------------------------------------------
2003 (A)(B)(C) 2002 2001 2000 1999 1998
CLASS G SHARES ------------- ------- ------- ------- ------- -------
Net Asset Value, Beginning of
Period....................... $10.65 $ 14.30 $ 21.10 $ 15.31 $ 13.39 $ 20.73
-------------- ------- ------- ------- ------- -------
Income from Investment
Operations:
Net investment loss/(d)/...... (0.25)/(e)/ (0.27)/(e)/ (0.25) (0.37) (0.34) (0.30)
Net realized and unrealized
gain (loss) on investments... 2.84 (3.38) (3.15) 6.16 2.26 (4.78)
-------------- ------- ------- ------- ------- -------
Total from Investment
Operations................... 2.59 (3.65) (3.40) 5.79 1.92 (5.08)
-------------- ------- ------- ------- ------- -------
Less Distributions Declared
to Shareholders:
From net realized gains....... -- -- (3.40) -- -- (2.26)
In excess of net realized
gains........................ -- -- --/(f)/ -- -- --
-------------- ------- ------- ------- ------- -------
Total Distributions Declared
to Shareholders.............. -- -- (3.40) -- -- (2.26)
-------------- ------- ------- ------- ------- -------
Net Asset Value, End of Period $13.24 $ 10.65 $ 14.30 $ 21.10 $ 15.31 $ 13.39
============== ======= ======= ======= ======= =======
Total Return/(g)/............. 24.32%/(h)/ (25.52)%/(i)/ (17.66)% 37.82%/(i)/ 14.34%/(i)/ (26.72)%/(i)/
============== ======= ======= ======= ======= =======
Ratios to Average Net
Assets/Supplemental Data:
Expenses/(j)/................. 2.53%/(k)/ 2.29% 2.25% 2.24% 2.16% 2.11%
Net investment loss/(j)/...... (2.34)%/(k)/ (1.97)% (1.74)% (1.79)% (2.04)% (1.78)%
Waiver/reimbursement.......... -- 0.03% -- 0.01% 0.16% 0.05%
Portfolio turnover rate....... 123%/(h)/ 96% 75% 91% 105% 78%
Net assets, end of period
(000's)...................... $6,651 $ 9,148 $15,190 $18,936 $12,212 $12,565
- -------------------
(a) On October 13, 2003, the Liberty Small Company Equity Fund was redesignated
the Columbia Small Company Equity Fund.
(b) The Fund has 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) Net investment loss per share before reimbursement of certain expenses for
the period ended September 30, 2003 and the years ended October 31, 2002,
2001, 2000, 1999 and 1998 was $(0.25), $(0.27), $(0.25), $(0.38), $(0.37)
and $(0.30), respectively.
(e) Per share data was calculated using average shares outstanding during the
period.
(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) Not annualized.
(i) Had the Advisor 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.
See Notes to Financial Statements.
120
Columbia Small Company Equity Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
PERIOD ENDED YEAR ENDED OCTOBER 31,
SEPTEMBER 30, ----------------------------------------------------
2003 (A)(B)(C) 2002 2001 2000 1999
CLASS T SHARES -------------- ------- ------- -------- -------
Net Asset Value, Beginning of Period... $ 11.23 $ 14.95 $ 21.75 $ 15.66 $ 13.63
-------------- ------- ------- -------- -------
Income from Investment Operations:
Net investment loss/(d)/............... (0.15)/(e)/ (0.16)/(e)/ (0.17) (0.22) (0.23)
Net realized and unrealized gain (loss)
on investments........................ 3.01 (3.56) (3.23) 6.31 2.26
-------------- ------- ------- -------- -------
Total from Investment Operations....... 2.86 (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........ -- -- --/(f)/ -- --
-------------- ------- ------- -------- -------
Total Distributions Declared to
Shareholders.......................... -- -- (3.40) -- --
-------------- ------- ------- -------- -------
Net Asset Value, End of Period......... $ 14.09 $ 11.23 $ 14.95 $ 21.75 $ 15.66
============== ======= ======= ======== =======
Total Return/(g)/...................... 25.47%/(h)(i)/ (24.88)%/(i)/ (17.03)% 38.89% 14.89%/(i)/
============== ======= ======= ======== =======
Ratios to Average Net Assets/
Supplemental Data:
Expenses/(j)/.......................... 1.54%/(k)/ 1.46% 1.42% 1.44% 1.53%
Net investment loss/(j)/............... (1.35)%/(k)/ (1.14)% (0.91)% (0.99)% (1.41)%
Waiver/reimbursement................... 0.05%/(k)/ 0.03% -- -- 0.01%
Portfolio turnover rate................ 123%/(h)/ 96% 75% 91% 105%
Net assets, end of period (000's)...... $66,780 $57,537 $84,332 $125,427 $87,921
--------
1998
CLASS T SHARES -------
Net Asset Value, Beginning of Period... $ 20.94
-------
Income from Investment Operations:
Net investment loss/(d)/............... (0.19)
Net realized and unrealized gain (loss)
on investments........................ (4.86)
-------
Total from Investment Operations....... (5.05)
-------
Less Distributions Declared to
Shareholders:
From net realized gains................ (2.26)
In excess of net realized gains........ --
-------
Total Distributions Declared to
Shareholders.......................... (2.26)
-------
Net Asset Value, End of Period......... $ 13.63
=======
Total Return/(g)/...................... (26.26)%/(i)/
=======
Ratios to Average Net Assets/
Supplemental Data:
Expenses/(j)/.......................... 1.46%
Net investment loss/(j)/............... (1.13)%
Waiver/reimbursement................... 0.01%
Portfolio turnover rate................ 78%
Net assets, end of period (000's)...... $95,831
- -------------------
(a) On October 13, 2003, the Liberty Small Company Equity Fund was redesignated
the Columbia Small Company Equity Fund.
(b) The Fund has 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) Net investment loss per share before reimbursement of certain expenses for
the period ended September 30, 2003 and the years ended October 31, 2002,
2001, 2000, 1999 and 1998 was $(0.15), $(0.17), $(0.17), $(0.22), $(0.23)
and $(0.19), respectively.
(e) Per share data was calculated using average shares outstanding during the
period.
(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 Advisor 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.
See Notes to Financial Statements.
121
Columbia Small Company Equity Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
PERIOD ENDED YEAR ENDED OCTOBER 31,
SEPTEMBER 30, ------------------------------------------------------------
2003 (A)(B)(C) 2002 2001 2000 1999 1998
CLASS Z SHARES -------------- -------- -------- -------- -------- --------
Net Asset Value, Beginning of Period... $ 11.79 $ 15.63 $ 22.48 $ 16.13 $ 13.96 $ 21.32
-------------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment loss/(d)/............... (0.11)/(e)/ (0.11)/(e)/ (0.10) (0.12) (0.16) (0.14)
Net realized and unrealized gain (loss)
on investments........................ 3.17 (3.73) (3.35) 6.47 2.33 (4.96)
-------------- -------- -------- -------- -------- --------
Total from Investment Operations....... 3.06 (3.84) (3.45) 6.35 2.17 (5.10)
-------------- -------- -------- -------- -------- --------
Less Distributions Declared to
Shareholders:
From net realized gains................ -- -- (3.40) -- -- (2.26)
In excess of net realized gains........ -- -- --/(f)/ -- -- --
-------------- -------- -------- -------- -------- --------
Total Distributions Declared to
Shareholders.......................... -- -- (3.40) -- -- (2.26)
-------------- -------- -------- -------- -------- --------
Net Asset Value, End of Period......... $ 14.85 $ 11.79 $ 15.63 $ 22.48 $ 16.13 $ 13.96
============== ======== ======== ======== ======== ========
Total Return/(g)/...................... 25.95%/(h)/ (24.62)%/(i)/ (16.63)% 39.43% 15.54% (26.00)%
============== ======== ======== ======== ======== ========
Ratios to Average Net Assets/
Supplemental Data:
Expenses/(j)/.......................... 1.12%/(k)/ 1.04% 1.03% 1.03% 1.12% 1.09 %
Net investment loss/(j)/............... (0.93)%/(k)/ (0.72)% (0.52)% (0.58)% (1.00)% (0.76)%
Waiver/reimbursement................... -- 0.01% -- -- -- --
Portfolio turnover rate................ 123%/(h)/ 96% 75% 91% 105% 78 %
Net assets, end of period (000's)...... $293,603 $217,377 $318,414 $422,579 $233,326 $222,675
- -------------------
(a) On October 13, 2003, the Liberty Small Company Equity Fund was redesignated
the Columbia Small Company Equity Fund.
(b) The Fund has 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) Net investment loss per share before reimbursement of certain expenses for
the period ended September 30, 2003 and the years ended October 31, 2002,
2001, 2000, 1999 and 1998 was $(0.11), $(0.11), $(0.10), $(0.12), $(0.16)
and $(0.14), respectively.
(e) Per share data was calculated using average shares outstanding during the
period.
(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 Advisor 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.
See Notes to Financial Statements.
122
[GRAPHIC]
Notes to Financial Statements
NOTE 1. ORGANIZATION
Columbia Asset Allocation Fund ("Asset Allocation Fund"), Columbia Large Cap
Growth Fund ("Large Cap Growth Fund"), Columbia Disciplined Value Fund
("Disciplined Value Fund"), Columbia International Equity Fund ("International
Equity Fund"), Columbia Large Cap Core Fund ("Large Cap Core Fund"), Columbia
Small Cap Fund ("Small Cap Fund"), and Columbia Small Company Equity Fund
("Small Company Equity Fund"), are each a series of the Columbia Funds Trust XI
(the "Trust") (individually referred to as a "Fund", collectively the "Funds").
The Trust is a Massachusetts business trust registered under the Investment
Company Act of 1940, as amended, as an open-end management investment company.
Each Fund is the successor to a separate series of The Galaxy Fund ("Galaxy"),
a Massachusetts business trust organized on March 31, 1986. The series of
Galaxy, to which the Funds succeeded, were reorganized as a separate series of
the Trust.
Effective October 13, 2003, the Liberty Asset Allocation Fund, Liberty Equity
Growth Fund, Liberty Equity Value Fund, Liberty International Equity Fund,
Liberty Large Cap Core Fund, Liberty Small Cap Fund, and Liberty Small Company
Equity Fund were renamed Columbia Asset Allocation Fund, Columbia Large Cap
Growth Fund, Columbia Disciplined Value Fund, Columbia International Equity
Fund, Columbia Large Cap Core Fund, Columbia Small Cap Fund and Columbia Small
Company Equity Fund, respectively. Also on this date the Liberty-Stein Roe
Funds Investment Trust was renamed Columbia Funds Trust XI.
Effective February 11, 2003, the Board of Trustees approved a change in the
fiscal year end of the Funds from October 31 to September 30.
Each Fund's investment goal is to seek long-term growth of capital. The Funds
may issue an unlimited number of shares. Each Fund currently offers six classes
of shares: Class A, Class B, Class C, Class G, Class T and Class Z shares.
Class A and Class T shares are sold with a front-end sales charge. A 1.00%
contingent deferred sales charge ("CDSC") is assessed on Class A and Class T
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
and Class G 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 G shares will convert to Class T
shares in eight years after purchase. 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 each Fund's prospectus.
On June 26, 2001, BKB shares of the Galaxy Asset Allocation Fund, Galaxy
Growth & Income Fund and Galaxy International Equity Fund were converted into
Retail A shares of the same Fund upon a finding by the Board of Trustees of the
Trust at a meeting
held on May 31, 2001 that such conversion was in the best interest of the
holders of the BKB Shares.
As of the end of business on November 15, 2002, the Stein Roe Balanced Fund, a
separate series of the Trust, merged into the Trust shares of Galaxy Asset
Allocation Fund. The Galaxy Asset Allocation Fund received a tax-free transfer
of assets from the Stein Roe Balanced Fund as follows:
NET ASSETS UNREALIZED
SHARES ISSUED RECEIVED APPRECIATION/1/
------------- -------- ---------------
9,749,490 $127,523,327 $8,523,537
NET ASSETS OF NET ASSETS OF
STEIN ROE GALAXY ASSET
NET ASSETS OF BALANCED ALLOCATION
GALAXY ASSET FUND FUND
ALLOCATION IMMEDIATELY IMMEDIATELY
FUND PRIOR TO PRIOR TO AFTER
COMBINATION COMBINATION COMBINATION
----------- ----------- -----------
$441,389,479 $127,523,327 $568,912,806
/1/ Unrealized appreciation is included in the Net Assets Received amount shown
above.
Also as of the end of business on November 15, 2002, subsequent to the merger
described above, the Galaxy Asset Allocation Fund, previously a fund of Galaxy,
was reorganized as the Liberty Asset Allocation Fund. Class A, Class B, Class
G, Class T and Class Z shares were issued in exchange for Prime A, Prime B,
Retail B, Retail A and Trust shares, respectively. Class C shares commenced
operations on November 18, 2002.
Also as of the end of business on November 15, 2002, the Galaxy Equity Growth
Fund, previously a fund of Galaxy, was reorganized as the Liberty Equity Growth
Fund with Class A, Class B, Class G, Class T and Class Z shares issued in
exchange for Prime A, Prime B, Retail B, Retail A and Trust shares,
respectively. Class C shares commenced operations on November 18, 2002.
As of the end of business on November 22, 2002, the Galaxy Equity Value Fund,
previously a fund of Galaxy, was reorganized as the Liberty Equity Value Fund
with Class G, Class T and Class Z shares issued in exchange for Retail B,
Retail A and Trust shares, respectively. Class A, Class B and Class C shares
commenced operations on November 25, 2002.
As of the end of business on November 15, 2002, the Galaxy International
Equity Fund, previously a fund of Galaxy, was reorganized as the Liberty
International Equity Fund with Class A, Class B, Class G, Class T and Class Z
shares issued in exchange for Prime A, Prime B, Retail B, Retail A and Trust
shares, respectively. Class C shares commenced operations on November 18, 2002.
As of the end of business on December 6, 2002, the Galaxy Large Cap Value
Fund, Retail A, Retail B and Trust shares merged into the Galaxy Growth &
Income Fund, Prime A, Retail B and Trust shares, respectively. The Galaxy Large
Cap Value Fund and Galaxy Growth & Income Fund were both previously funds of
Galaxy. The Galaxy Growth & Income Fund received a tax-free transfer of assets
from Galaxy Large Cap Value Fund as follows:
123
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SHARES NET ASSETS UNREALIZED
ISSUED RECEIVED APPRECIATION/1/
------ -------- ---------------
8,506,336 $88,215,757 $3,841,144
NET ASSETS NET ASSETS
NET ASSETS OF OF
OF GALAXY LARGE CAP GALAXY GROWTH &
GALAXY GROWTH & VALUE FUND INCOME FUND
INCOME FUND IMMEDIATELY IMMEDIATELY
PRIOR TO PRIOR TO AFTER
COMBINATION COMBINATION COMBINATION
----------- ----------- -----------
$560,578,780 $88,215,757 $648,794,537
/1/ Unrealized appreciation is included in the Net Assets Received amount shown
above.
Also as of the end of business on December 6, 2002, subsequent to the merger
described above, the Galaxy Growth & Income Fund was reorganized as the Liberty
Large Cap Core Fund. Class A, Class B, Class G, Class T and Class Z shares were
issued in exchange for Prime A, Prime B, Retail B, Retail A and Trust shares,
respectively. Class C shares commenced operations on December 9, 2002.
As of the end of business on November 15, 2002, the Galaxy Small Cap Value
Fund, previously a fund of Galaxy, was reorganized as the Liberty Small Cap
Fund with Class A, Class B, Class G, Class T and Class Z shares issued in
exchange for Prime A, Prime B, Retail B, Retail A and Trust shares,
respectively. Class C shares commenced operations on November 18, 2002.
As of the end of business on November 15, 2002, the Galaxy Small Company
Equity Fund, previously a fund of Galaxy, was reorganized as the Liberty Small
Company Equity Fund with Class G, Class T and Class Z shares issued in exchange
for Retail B, Retail A and Trust shares, respectively. Class A, Class B and
Class C shares commenced operations on November 18, 2002.
On March 1, 2001, the Board of Trustees of the Galaxy Fund approved an
Agreement and Plan of Reorganization (the "Agreement") providing for the
acquisition of the Pillar Funds by the Trust. Pursuant to the Agreement, all of
the assets and liabilities of the Pillar Balanced Fund and Pillar International
Equity Fund were transferred, in exchange for shares, to the Galaxy Asset
Allocation Fund and Galaxy International Equity Fund, respectively. The
acquisition, which qualified as a tax-free reorganization for federal income
tax purposes, was completed on August 27, 2001, following the approval of the
reorganization by the Pillar Fund shareholders as follows:
SHARES NET ASSETS UNREALIZED
ISSUED RECEIVED APPRECIATION/1/
------ -------- ---------------
2,850,389 $44,468,412 $6,132,274
/1/ Unrealized appreciation is included in the Net Assets Received amount shown
above.
NET ASSETS NET ASSETS
NET ASSETS OF OF
OF PILLAR GALAXY ASSET
GALAXY ASSET BALANCED FUND ALLOCATION FUND
ALLOCATION FUND IMMEDIATELY IMMEDIATELY
PRIOR TO PRIOR TO AFTER
COMBINATION COMBINATION COMBINATION
----------- ----------- -----------
$634,352,052 $44,468,412 $678,820,464
SHARES NET ASSETS UNREALIZED
ISSUED RECEIVED DEPRECIATION/1/
------ -------- ---------------
2,037,664 $26,104,525 $(3,523,990)
/1/ Unrealized depreciation is included in the Net Assets Received amount shown
above.
NET ASSETS NET ASSETS
NET ASSETS OF OF
OF PILLAR GALAXY INTERNATIONAL
GALAXY INTERNATIONAL INTERNATIONAL EQUITY EQUITY FUND
EQUITY FUND FUND IMMEDIATELY IMMEDIATELY
PRIOR TO PRIOR TO AFTER
COMBINATION COMBINATION COMBINATION
----------- ----------- -----------
$675,865,645 $26,104,525 $701,970,170
The accompanying statements of operations, statements of changes in net assets
and financial highlights for these funds represent the historical operations of
the Galaxy Asset Allocation Fund, Galaxy Equity Growth Fund, Galaxy
International Equity Fund, Galaxy Small Cap Value Fund and Galaxy Small Company
Equity Fund for periods prior to November 15, 2002, and the Galaxy Equity Value
Fund for periods prior to November 22, 2002 and the Galaxy Growth & Income Fund
for periods prior to December 6, 2002.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
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 income 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.
Portfolio Valuation: Investments in securities which are traded on a
recognized stock exchange are valued at the last sale price on the securities
exchange on which such securities are primarily traded or at the last sale
price on the national securities market. Securities traded on over-the-counter
markets are valued at the last bid price. Short-term obligations that mature in
60 days or less are valued at amortized cost, which approximates market value.
All other securities and other assets are appraised at their fair value as
determined in good faith under consistently applied procedures established by
and under the general supervision of the Board of Trustees. Investments in
other investment companies are valued at net asset value.
Foreign markets close each day at various times prior to the close of the New
York Stock Exchange ("NYSE"). Foreign currency exchange rates are generally
determined prior to the close of the NYSE at 12:00 p.m. EST. Occasionally,
events affecting the values of such securities and such exchange rates may
occur subsequent to the close of the exchange or market which would not be
reflected in the computation of the Fund's net asset value. In such an event,
these foreign securities will be valued at their fair value. The values of
foreign currency exchange rates are not adjusted for such events.
124
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Securities Transactions and Investment Income: Securities transactions are
accounted for on a trade date basis. Net realized gains or losses on sales of
securities are determined by the identified cost method. Interest income is
recorded on the accrual basis. Premium and discount are amortized and accreted,
respectively on all debt securities. Dividend income less foreign taxes
withheld (if any) is recorded on the ex-dividend date. Certain dividends from
foreign securities will be recorded as soon as the Fund is informed of the
dividend, if such information is obtained subsequent to the ex-dividend date.
Investment income and realized and unrealized gains and losses are allocated to
each Fund based upon its relative net assets. Awards from litigation are
recorded as a reduction of cost if the Funds still hold the affected securities
on the payment date. If the Funds no longer hold the affected securities, the
proceeds are recorded as realized gains.
Income Recognition. The Trust adopted the provisions of the American Institute
of Certified Public Accountants' Audit and Accounting Guide for Investment
Companies (the "Guide") effective November 1, 2001. The Guide requires
investment companies to amortize premiums and discounts on fixed income
securities and to adjust interest income by paydown gains and losses on
mortgage- and asset-backed securities. Prior to November 1, 2001, the Funds did
not amortize premiums and discounts on fixed income securities, however,
interest income was adjusted by paydown gains and losses on mortgage-backed and
asset-backed securities. Accordingly, those Funds affected recorded a
cumulative effect adjustment to reflect the amortization of premiums and
discounts and the adjustment of paydown gains and losses. The cumulative effect
of this accounting change did not impact the net assets of the Asset Allocation
Fund, but resulted in reclassifications as follows:
FOR THE YEAR ENDED
AT OCTOBER 31, 2001 OCTOBER 31, 2002
----------------------- --------------------------------
NET NET NET
UNREALIZED INVESTMENT REALIZED UNREALIZED
APPRECIATION COST LOSS GAIN DEPRECIATION
------------ ---------- ---------- -------- ------------
$586,321 $(586,321) $(229,372) $387,227 $(157,855)
FOR THE PERIOD ENDED
SEPTEMBER 30, 2003
----------------------------------------------
NET NET
INVESTMENT NET REALIZED UNREALIZED PAID-IN
LOSS GAIN DEPRECIATION CAPITAL
---------- ------------ ------------ ---------
$(166,094) $247,697 $(16,736) $(64,867)
Forward Foreign Currency Exchange Contracts: The International Equity Fund may
enter into forward foreign currency exchange contracts whereby a Fund agrees to
buy or sell a specific currency at a specified price at a future date in an
attempt to hedge against fluctuations in the value of the underlying currency
of certain portfolio instruments. Forward foreign currency exchange contracts
are valued at the daily exchange rate of the underlying currency. Purchases and
sales of forward foreign currency exchange contracts having the same settlement
date and broker are offset and presented on a net basis in the Statement of
Assets and Liabilities. Gains or losses on the purchase or sale of forward
foreign currency exchange contracts having the same settlement date and broker
are recognized on the date of offset. Otherwise, gains or losses are recognized
on the settlement date.
Foreign Currency Translation: The books and records of the International
Equity Fund are maintained in U.S. dollars. Investment valuations and other
assets and liabilities initially expressed in foreign currencies are converted
each business day into U.S. dollars based upon current exchange rates.
Purchases and sales of foreign investments and income and expenses are
converted into U.S. dollars based upon exchange rates prevailing on the
respective dates of such transactions. That portion of unrealized gains or
losses on investments due to fluctuations in foreign currency exchange rates is
not separately disclosed.
Dividends and Distributions to Shareholders: Dividends from net investment
income are declared and paid quarterly for each Fund, with the exception of the
International Equity Fund. The International Equity Fund declares and pays
dividends annually. Net realized capital gains for each of the Funds, if any,
are distributed at least annually.
Federal Income Taxes: Each Fund intends to comply with the requirements of the
Internal Revenue Code applicable to "regulated investment companies" by
distributing substantially all taxable net investment income and net realized
gains to its shareholders in a manner that results in no tax to the Funds.
Therefore, no federal income or excise tax provision is required.
Repurchase Agreements: Each Fund may engage in repurchase agreement
transactions with institutions that the Trust's investment advisor has
determined are creditworthy. Each repurchase agreement transaction is recorded
at cost plus accrued interest. Each Fund requires that the securities
collateralizing a repurchase agreement transaction be transferred to the
Trust's custodian or a sub-custodian in a manner that is intended to enable the
Fund to obtain those securities in the event of a counterparty default. The
value of the collateral securities is monitored daily to ensure that the value
of the collateral, including accrued interest, equals or exceeds the repurchase
price. Repurchase agreement transactions involve certain risks in the event of
default or insolvency of the counterparty, including possible delays or
restrictions upon a 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.
Financial Futures Contracts: Certain Funds may invest in financial futures
contracts solely for the purpose of hedging their existing portfolio
securities, or securities that the Funds intend to purchase, against
fluctuations in fair value caused by changes in prevailing market interest
rates. Upon entering into a financial futures contract, a fund is required to
pledge to the broker an amount of cash, U.S. government securities or other
assets, equal to a certain percentage of the contract amount (initial margin
deposit). Subsequent payments, known as "variation margin," are made or
received by a fund each day, depending on the daily fluctuations in the fair
value of the underlying security. A fund recognizes an unrealized gain or loss
equal to the daily variation margin. Should market conditions move
unexpectedly, a fund may not achieve the anticipated benefits of the financial
futures contracts and may realize a loss. The use of futures transactions
involves the risk of imperfect correlation in movements in the price of futures
contracts interest rates, and the underlying assets. The daily changes in
contract value are recorded as unrealized gains or losses, and a fund
recognizes the realized gain or loss when the contract is closed.
Redemption Fees. Effective February 15, 2003, the International Equity Fund
began imposing a 2.00% redemption fee to shareholders of Class Z shares who
redeem shares held for 60 days or
125
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
less. For the period February 15, 2003 to September 30, 2003, the redemption
fee for Class Z shares amounted to $47,802. This amount, which is retained by
the International Equity Fund, is accounted for as an addition to paid-in
capital. For the period February 10, 2003 through October 8, 2003, redemption
fees were recorded as a component of paid-in capital on Class Z. Effective
October 9, 2003, redemption fees are allocated to paid-in capital of each class
proportionately for purposes of determining the net asset value of each class.
Determination of Class Net Asset Values: All income, expenses (other than
class specific expenses), 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.
NOTE 3. 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, discount
accretion/premium amortization on debt securities, straddle deferrals,
mark-to-market on futures contracts, foreign currency transactions, net
operating losses, REIT return of capital adjustments, capital loss
carryforwards and non-deductible expenses. Reclassifications are made to the
Funds' capital accounts to reflect income and gains available for distribution
(or available capital loss carryforwards) under income tax regulations.
For the period ended September 30, 2003, permanent items identified and
reclassified among the components of net assets are as follows:
UNDISTRIBUTED
(OVERDISTRIBUTED) ACCUMULATED
NET INVESTMENT NET REALIZED PAID-IN
INCOME (LOSS) GAIN (LOSS) CAPITAL
----------------- ------------ -----------
Asset Allocation Fund.... $ (11,643) $(1,530,907) $ 1,542,550
Large Cap Growth Fund.... -- (1) 1
Disciplined Value Fund... 2,075 -- (2,075)
International Equity Fund (799,501) 789,501 10,000
Large Cap Core Fund...... (559) (15,770) 16,329
Small Cap Fund........... 305,187 (3,381,424) 3,076,237
Small Company Equity Fund 3,034,306 -- (3,034,306)
Net investment income, net realized gains (losses) and net assets were not
affected by this reclassification. Included in the reclassification for the
Asset Allocation Fund are book-to-tax timing differences totaling $1,477,683
which were acquired as part of the merger. These timing differences are mostly
comprised of capital loss carryforwards, wash sales, straddle deferrals and
non-deductible expenses.
The tax character of distributions paid during the period ended September 30,
2003 and the years ended October 31, 2002 and 2001 was as follows:
SEPTEMBER 30, 2003
-------------------------
ORDINARY LONG-TERM
INCOME CAPITAL GAINS
----------- -------------
Asset Allocation Fund.... $ 8,302,859 $ --
Large Cap Growth Fund.... 2,326,344 --
International Equity Fund 4,361,724 --
Large Cap Core Fund...... 2,920,950 --
Small Cap Fund........... 8,797,912 23,723,001
OCTOBER 31, 2002
-------------------------
ORDINARY LONG-TERM
INCOME CAPITAL GAINS
----------- -------------
Asset Allocation Fund.... $ 8,939,420 $ --
Disciplined Value Fund... -- 10,519,279
International Equity Fund 12,204,413 --
Large Cap Core Fund...... 2,339,161 25,685,830
Small Cap Fund........... 8,625,684 39,447,563
OCTOBER 31, 2001
-------------------------
ORDINARY LONG-TERM
INCOME CAPITAL GAINS
----------- -------------
Asset Allocation Fund.... $14,900,775 $ 31,247,196
Large Cap Growth Fund.... -- 217,923,248
Disciplined Value Fund... 33,292,000 37,101,858
International Equity Fund 28,943,986 106,021,821
Large Cap Core Fund...... 2,663,810 84,112,835
Small Cap Fund........... 23,596,489 33,921,969
Small Company Equity Fund -- 83,869,391
As of September 30, 2003, the components of distributable earnings on a tax
basis were as follows:
UNDISTRIBUTED UNDISTRIBUTED
ORDINARY LONG-TERM UNREALIZED
INCOME CAPITAL GAINS APPRECIATION*
------------- ------------- -------------
Asset Allocation Fund.... $1,249,067 $ -- $27,264,187
Large Cap Growth Fund.... 341,082 -- 84,735,647
Disciplined Value Fund... 1,777,312 -- 21,380,973
International Equity Fund 2,898,901 -- 45,223,142
Large Cap Core Fund...... 207,171 -- 25,264,680
Small Cap Fund........... 8,460,586 24,470,238 72,150,539
Small Company Equity Fund -- -- 47,363,020
* The difference between book-basis and tax-basis unrealized appreciation, if
applicable, is attributable primarily to the tax deferral of losses on wash
sales and REIT return of capital adjustments.
126
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The following capital loss carryforwards, determined as of September 30, 2003,
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:
ASSET LARGE CAP DISCIPLINED
YEAR OF ALLOCATION GROWTH VALUE
EXPIRATION FUND* FUND FUND
---------- ------------- ------------ ----------- -
2007.... $ 260,595 $ -- $ --
2008.... 330,406 -- --
2009.... -- 41,527,758 --
2010.... 28,548,737 99,339,708 65,721,738
2011.... 5,941,365 22,217,091 --
------------- ------------ -----------
Total... $ 35,081,103 $163,084,557 $65,721,738
------------- ------------ -----------
LARGE CAP SMALL SMALL
YEAR OF INTERNATIONAL CORE CAP COMPANY
EXPIRATION EQUITY FUND* FUND FUND EQUITY FUND
---------- ------------- ------------ ----------- ------------
2008.... $ 4,901,661 $ -- $ -- $ --
2009.... 104,830,434 -- -- 7,702,742
2010.... 219,682,429 2,882,225 -- 93,115,978
2011.... 36,290,283 16,616,641 -- --
------------- ------------ ----------- ------------
Total... $365,704,807 $ 19,498,866 $ -- $100,818,720
------------- ------------ ----------- ------------
* The availability of a portion of these capital loss carryforwards ($591,001
with respect to the Asset Allocation Fund and $4,901,661 with respect to the
International Equity Fund), which were acquired on August 20, 2001 in
connection with The Pillar Funds reorganization, may be limited in a given
year.
Expired capital loss carryforwards, if any, are recorded as a reduction of
paid-in capital.
Utilization of these capital loss carryforwards above could be subject to
merger limitations imposed by the Internal Revenue Code.
NOTE 4. INVESTMENT ADVISORY, ADMINISTRATION, SHAREHOLDER SERVICES, DISTRIBUTION
AND OTHER FEES
On April 1, 2003, Fleet Investment Advisors Inc., the investment advisor to
the Funds, and Stein Roe & Farnham Incorporated, the administrator to the
Funds, 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 those companies with respect to the Funds. The
merger did not change the way the Funds are managed, the investment personnel
assigned to manage the Funds or the fees paid by the Funds.
Columbia is the investment advisor of the Funds and receives a monthly fee
equal to 0.75% annually of the average daily net assets of each Fund (excluding
the International Equity Fund).
Columbia intends to waive advisory fees payable to it by each Fund so that the
advisory fees payable by each Fund would be as follows:
AVERAGE DAILY NET ASSETS ANNUAL FEE RATIO
------------------------ ----------------
First $500 million 0.75%
Next $500 million 0.70%
Next $500 million 0.65%
Next $500 million 0.60%
Over $2 billion 0.55%
In addition, effective July 1, 2003, Columbia waived the advisory fee by 0.03%
annually of the average daily net assets of the Asset Allocation Fund.
At a meeting held on October 8, 2003, the Board of Trustees approved a new
management fee structure for the Funds (excluding International Equity and
Small Company Equity Fund) to go into effect on November 1, 2003. Under the new
structure, Columbia will receive a monthly fee, based on the Funds' average
daily net assets, as follows:
AVERAGE DAILY NET ASSETS ANNUAL FEE RATIO
------------------------ ----------------
First $500 million 0.75%
Next $500 million 0.70%
Next $500 million 0.65%
Next $500 million 0.60%
Over $2 billion 0.55%
Under the new structure, Columbia will receive from the Small Company Equity
Fund a monthly fee, based on the Fund's average daily net assets, as follows:
AVERAGE DAILY NET ASSETS ANNUAL FEE RATIO
------------------------ ----------------
First $500 million 0.75%
Next $500 million 0.70%
Over $1 billion 0.65%
Effective November 1, 2003, Columbia no longer intends to waive its advisory
fees payable to it by the Funds (excluding International Equity Fund).
The International Equity Fund pays Columbia an advisory fee, computed daily
and paid monthly, at an annual rate based on average net assets as follows:
AVERAGE DAILY NET ASSETS ANNUAL FEE RATIO
------------------------ ----------------
First $50 million 1.15%
Next $50 million 0.95%
Over $100 million 0.85%
For one year from the date of acquisition of the Galaxy International Equity
Fund, Columbia has agreed to waive fees in the amount of 0.25% annually of the
average daily net assets of the International Equity Fund.
Prior to August 10, 2002, Oeschle International Advisors, LLC ("Oeschle")
served as sub-advisor with respect to the International Equity Fund. Oeschle
was paid fees for its services at an annual rate of 0.40% of the first $50
million of the Fund's average daily net assets, plus 0.35% of average daily net
assets in excess of $50 million.
Columbia provides, pursuant to an Administrative Agreement with the Funds,
certain administrative services for a monthly fee equal to 0.067% annually of
each Fund's average daily net assets. Prior to November 26, 2002, the
administration agreement was computed daily and paid monthly at the annual rate
of 0.09% of the first $2.5 billion of the combined average daily net assets of
the Funds and the other funds offered by Galaxy, 0.085% of the next $2.5
billion of combined average daily net assets, 0.075% of the next $7 billion of
combined average daily net assets, 0.065%
127
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
of the next $3 billion of combined average daily net assets, 0.06% of the next
$3 billion of combined average daily net assets, 0.0575% of the next $3 billion
of combined average daily net assets, 0.0525% of the next $9 billion of
combined average daily net assets and 0.05% of combined average daily net
assets in excess of $30 billion. Effective July 22, 2002 through November 22,
2002, PFPC ("PFPC"), a member of PNC Financial Services Group, served as
sub-administrator to the Funds pursuant to an agreement with Columbia.
Columbia is also 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 Bank and Trust Company ("State Street"). Columbia pays fees to State
Street under the Outsourcing Agreement.
Under its pricing and bookkeeping agreement with the Funds, Columbia receives
from each Fund an annual fee based on the average daily net assets of each Fund
as follows:
AVERAGE DAILY NET ASSETS FEE
------------------------ ---
Under $50 million $ 25,000
Of $50 million but less than $200 million 35,000
Of $200 million but less than $500 million 50,000
Of $500 million but less than $1 billion 85,000
In excess of $1 billion 125,000
The annual fees for a Fund with more than 25% in non-domestic assets will be
150% of the annual fees described above.
Funds which have a multi-class structure are charged an additional annual flat
fee of $10,000. The Funds also pay out-of-pocket costs for pricing services.
Prior to July 22, 2002, PFPC provided pricing and bookkeeping services to the
Funds at the same annual rates described above. PFPC continued to provide
certain of these pricing and bookkeeping services, through November 22, 2002,
pursuant to an agreement with Columbia.
Liberty Funds Services, Inc. (the "Transfer Agent"), an affiliate of Columbia,
provides shareholder services for a monthly fee based on a per account charge
or minimum of $5,000 annually per Fund. 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.
The Transfer Agent has agreed to reimburse class specific transfer agent fees
as follows:
FEES WAIVED
CLASS C CLASS G CLASS T
-----------------------
Disciplined Value Fund $ 59 $ -- $ --
International Equity Fund 177 10,346 39,434
Large Cap Core Fund -- 17,053 --
Small Company Equity Fund -- -- 25,753
At a meeting held on October 8, 2003, the Board of Trustees approved the
change of transfer agent fees structure of the Funds. Effective November 1,
2003, the Funds will be charged an annual $28.00 charge per open account for
the transfer agent fees.
Prior to July 22, 2002, PFPC was the transfer agent to the Funds at the same
rates described above.
Liberty Funds Distributor, Inc. (the "Distributor"), an affiliate of Columbia,
is the Funds' principal underwriter. Effective October 13, 2003, Liberty Funds
Distributor, Inc. changed its name to Columbia Funds Distributor, Inc. For the
period ended September 30, 2003, the Funds have been advised that the
Distributor has retained fees as follows:
FRONT-END
SALES CHARGE CDSC
--------------- ----------------------------------------
CLASS A CLASS T CLASS A CLASS B CLASS C CLASS G CLASS T
- - ------- ------- ------- ------- ------- ------- -------
Asset Allocation Fund.... $ 1,161 $2,036 $ -- $1,554 $ -- $202,612 $--
Large Cap Growth Fund.... 1,782 6,750 -- 347 -- 147,908 --
Disciplined Value Fund... 721 1,579 -- -- -- 27,520 --
International Equity Fund 549 552 -- 268 -- 11.550 --
Large Cap Core Fund...... 3,657 2,875 -- 107 -- 66,414 --
Small Cap Fund........... 56,605 4,062 6,519 7,421 391 18,806 3
Small Company Equity Fund 601 861 -- 41 -- 11,735 --
The Funds have adopted a 12b-1 plan (the "Plan"), which requires the payment
of a monthly service and distribution fee to the Distributor at an annual fee
rate as follows:
DISTRIBUTION FEE SERVICE FEE
--------------------------------- ---------------------------------
CLASS A* CLASS B CLASS C CLASS G** CLASS A* CLASS B CLASS C CLASS G**
-------- ------- ------- --------- -------- ------- ------- ---------
Asset Allocation Fund.... 0.10% 0.75% 0.75% 0.65% 0.25% 0.25% 0.25% 0.50%
Large Cap Growth Fund.... 0.10% 0.75% 0.75% 0.65% 0.25% 0.25% 0.25% 0.50%
Disciplined Value Fund... 0.10% 0.75% 0.75% 0.65% 0.25% 0.25% 0.25% 0.50%
International Equity Fund 0.10% 0.75% 0.75% 0.65% 0.25% 0.25% 0.25% 0.50%
Large Cap Core Fund...... 0.10% 0.75% 0.75% 0.65% 0.25% 0.25% 0.25% 0.50%
Small Cap Fund........... 0.10% 0.75% 0.75% 0.65% 0.25% 0.25% 0.25% 0.50%
Small Company Equity Fund 0.10% 0.75% 0.75% 0.65% 0.25% 0.25% 0.25% 0.50%
* The Fund's Board of Trustees limits payments under the Plan for Class A
shares to 0.25% annually of the Class A average daily net assets.
** The Fund's Board of Trustees limits payments under the Plan for Class G
shares to 0.95% annually of the Class G average daily net assets.
128
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Prior to July 22, 2002, PFPC Distributors, Inc., a wholly-owned subsidiary of
PNC Financial Services Group, acted as the exclusive distributor to the Class Z
shares (formerly Trust shares).
The Funds have adopted plans that permit them 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 Funds do not intend to pay more than 0.30% annually for Class T
shareholder service 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.
Each Fund pays no compensation to its officers, all of whom are employees of
Columbia or its affiliates.
The Funds' 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 Funds' assets.
The Funds have an agreement with their custodian bank under which custody fees
are 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. The
amounts of custody credits for the period ended September 30, 2003 are as
follows:
CUSTODY CREDITS
---------------
Asset Allocation Fund.... $ 965
Disciplined Value Fund... 724
International Equity Fund 508
Small Cap Fund........... 1,792
Small Company Equity Fund 909
Expenses for the year ended October 31, 2002 include legal fees paid directly
to Drinker Biddle and Reath LLP. A partner of that firm is Secretary to the
Trust.
NOTE 5. SHARES OF BENEFICIAL INTEREST
The Trust's Declaration of Funds authorizes the Trustees to issue an unlimited
number of shares of beneficial interest, each with a par value of $0.001.
NOTE 6. PURCHASES AND SALES OF SECURITIES
The cost of purchases and proceeds from sales of securities, excluding
short-term investments, for the period ended September 30, 2003 were as follows:
OTHER INVESTMENT
SECURITIES
-------------------------
PURCHASES SALES
------------ ------------
Asset Allocation Fund.... $573,085,167 $646,875,604
Large Cap Growth Fund.... 839,549,053 929,542,465
Disciplined Value Fund... 180,384,584 163,867,815
International Equity Fund 251,917,907 344,201,332
Large Cap Core Fund...... 271,252,999 514,300,238
Small Cap Fund........... 292,841,268 138,173,377
Small Company Equity Fund 388,358,528 379,182,641
U.S. GOVERNMENT
SECURITIES
-------------------------
PURCHASES SALES
------------ ------------
Asset Allocation Fund.... $ 8,113,316 $ 14,584,999
Unrealized appreciation (depreciation) at September 30, 2003, based on cost of
investments for federal income tax purposes, was:
GROSS GROSS NET
UNREALIZED UNREALIZED UNREALIZED
APPRECIATION DEPRECIATION APPRECIATION
------------ ------------ ------------
Asset Allocation Fund.... $ 41,420,258 $(14,082,450) $27,337,808
Large Cap Growth Fund.... 124,808,944 (40,073,297) 84,735,647
Disciplined Value Fund... 37,956,926 (16,575,953) 21,380,973
International Equity Fund 57,411,628 (11,076,244) 46,335,384
Large Cap Core Fund...... 38,462,589 (13,197,909) 25,264,680
Small Cap Fund........... 159,680,118 (87,529,579) 72,150,539
Small Company Equity Fund 62,568,494 (15,205,474) 47,363,020
NOTE 7. FOREIGN SECURITIES
Each Fund may purchase securities of foreign issuers. Investing in securities
of foreign issuers involves special risks not typically associated with
investing in securities of U.S. issuers. The risks include possible revaluation
of currencies, less complete financial information about companies and possible
future adverse political and economic developments. Moreover, securities of
many foreign issuers and their markets may be less liquid and their prices more
volatile than those of securities of comparable U.S. issuers.
NOTE 8. LINE OF CREDIT
Prior to each Fund's merger into the Trust, the Funds and other Galaxy funds
participated in a $150,000,000 credit facility, which was used for temporary or
emergency purposes to facilitate portfolio liquidity. Interest was charged to a
Fund based on its borrowings. In addition, each Fund paid commitment fees on
its pro-rata portion of the line of credit. The commitment fees are included in
"Other expenses" on the Statement of Operations. Following the merger into the
Trust, the Funds participated in a $200,000,000 credit facility with other
Liberty Funds. On April 26, 2003, the Funds entered into a new $350,000,000
credit facility with other Liberty Funds, pursuant to similar terms and
conditions. For the period ended September 30, 2003, the Funds did not borrow
under these agreements.
129
[GRAPHIC]
Report of Ernst & Young LLP, Independent Auditors
To the Shareholders and Board of Trustees of Columbia Funds Trust XI
We have audited the accompanying statements of assets and liabilities,
including the portfolios of investments, of Columbia Asset Allocation Fund,
Columbia Large Cap Growth Fund, Columbia Disciplined Value Fund, Columbia
International Equity Fund, Columbia Large Cap Core Fund, Columbia Small Cap
Fund and Columbia Small Company Equity Fund (formerly, Liberty Asset Allocation
Fund, Liberty Equity Growth Fund, Liberty Equity Value Fund, Liberty
International Equity Fund, Liberty Large Cap Core Fund, Liberty Small Cap Fund,
and Liberty Small Company Equity Fund, respectively, and prior to that, Galaxy
Asset Allocation Fund, Galaxy Equity Growth Fund, Galaxy Equity Value Fund,
Galaxy International Equity Fund, Galaxy Growth and Income Fund, Galaxy Small
Cap Value Fund, and Galaxy Small Company Equity Fund, respectively)
(collectively, the "Funds") (seven of the portfolios comprising Columbia Funds
Trust XI (formerly, Liberty-Stein Roe Funds Investment Trust and prior to that,
The Galaxy Fund)) as of September 30, 2003, and the related statements of
operations for the period from November 1, 2002 to September 30, 2003 and for
the year ended October 31, 2002, the statements of changes in net assets for
the period from November 1, 2002 to September 30, 2003 and for each of the two
years in the period ended October 31, 2002, and the financial highlights for
each of the periods indicated therein. These financial statements and financial
highlights are the responsibility of the Funds' management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits. The financial highlights for the year ended October 31,
1998 were audited by other auditors, whose report dated December 23, 1998
expressed an unqualified opinion on these financial highlights.
We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
and financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of September 30, 2003, by correspondence
with the custodian and brokers, or by other appropriate auditing procedures
where replies from brokers were not received. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Columbia Asset Allocation Fund, Columbia Large Cap Growth Fund, Columbia
Disciplined Value Fund, Columbia International Equity Fund, Columbia Large Cap
Core Fund, Columbia Small Cap Fund, and Columbia Small Company Equity Fund,
seven of the portfolios comprising Columbia Funds Trust XI, at September 30,
2003, the results of their operations, the changes in their net assets, and the
financial highlights for each of the periods indicated above, in conformity
with accounting principles generally accepted in the United States.
/s/ Ernst & Young LLP
Boston, Massachusetts
November 14, 2003
130
UNAUDITED INFORMATION
FEDERAL INCOME TAX INFORMATION:
COLUMBIA ASSET ALLOCATION FUND:
38.43% of the ordinary income distributed by the Fund, for the period ended
September 30, 2003, qualifies for the corporate dividends received deduction.
For non-corporate shareholders 49.35%, or the maximum amount allowable under
the Jobs and Growth Tax Relief Reconciliation Act of 2003, of income earned by
the Fund for the period January 1, 2003 to September 30, 2003 may represent
qualified dividend income. Final information will be provided in your 2003
1099-Div Form.
COLUMBIA LARGE CAP GROWTH FUND:
100.00% of the ordinary income distributed by the Fund, for the period ended
September 30, 2003, qualifies for the corporate dividends received deduction.
COLUMBIA INTERNATIONAL EQUITY FUND:
Foreign taxes paid during the fiscal year ended September 30, 2003 amounting to
$982,881 ($0.03 per share) are expected to be passed through to shareholders as
100% allowable foreign tax credits on Form 1099-DIV for the year ending
December 31, 2003.
Gross income derived from sources within foreign countries amounted to
$7,543,017 ($0.21 per share) for the fiscal year ended September 30, 2003.
COLUMBIA LARGE CAP CORE FUND:
100.00% of the ordinary income distributed by the Fund, for the period ended
September 30, 2003, qualifies for the corporate dividends received deduction.
For non-corporate shareholders 100.00% , or the maximum amount allowable under
the Jobs and Growth Tax Relief Reconciliation Act of 2003, of income earned by
the Fund for the period January 1, 2003 to September 30, 2003 may represent
qualified dividend income. Final information will be provided in your 2003
1099-Div Form.
COLUMBIA SMALL CAP FUND:
For the fiscal year ended September 30, 2003, the Fund designates long-term
capital gains of $26,826,200.
49.82% of the ordinary income distributed by the Fund, for the period ended
September 30, 2003, qualifies for the corporate dividends received deduction.
131
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[GRAPHIC]
Trustees
Effective October 8, 2003, Patrick J. Simpson and Richard L. Woolworth were
appointed to the Board of Trustees of the Funds. Messrs. Simpson and Woolworth
had been directors/trustees of 15 Columbia Funds and 20 funds in the CMG Fund
Trust. Also effective October 8, 2003, the incumbent trustees of the Funds were
elected as directors of the 15 Columbia Funds and as trustees of the 20 funds
in the CMG Fund Trust. The new combined Board of Trustees of the Funds 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 Other
with Appointed Principal Occupation(s) Complex Overseen Directorships
Name, Address and Age Funds to Office/1/ During Past Five Years by Trustee Held
- -------------------------------------------------------------------------------------------------------------------------
Disinterested Trustees
Douglas A. Hacker (Age 48) Trustee 1996 Executive Vice President 124 None
P.O. Box 66100 - Strategy of United
Chicago, IL 60666 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).
Janet Langford Kelly (Age 45) Trustee 1996 Chief Administrative 124 None
3100 West Beaver Road Officer and Senior Vice
Troy, MI 48084-3163 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).
Richard W. Lowry (Age 67) Trustee 1995 Private Investor since 126/3/ None
10701 Charleston Drive August, 1987 (formerly
Vero Beach, FL 32963 Chairman and Chief
Executive Officer, U.S.
Plywood Corporation
(building products
manufacturer)).
Charles R. Nelson (Age 61) Trustee 1981 Professor of Economics, 124 None
Department of Economics University of
University of Washington Washington, since
Seattle, WA 98195 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.
John J. Neuhauser (Age 60) Trustee 1985 Academic Vice President 127/3,4/ Saucony, Inc. (athletic
84 College Road and Dean of Faculties footwear); SkillSoft Corp.
Chestnut Hill, MA 02467-3838 since August, 1999, (E-Learning)
Boston College (formerly
Dean, Boston College
School of Management
from September, 1977 to
September, 1999).
Patrick J. Simpson (Age 58) Trustee 2000 Partner, Perkins Coie 124 None
1211 S.W. 5th Avenue L.L.P. (formerly
Suite 1500 Partner, Stoel Rives
Portland, OR 97204 Boley Jones & Grey).
Thomas E. Stitzel (Age 67) Trustee 1998 Business Consultant 124 None
2208 Tawny Woods Place since 1999 (formerly
Boise, ID 83706 Professor of Finance
from 1975 to 1999 and
Dean from 1977 to 1991,
College of Business,
Boise State University);
Chartered Financial
Analyst.
132
TRUSTEES (CONTINUED)
Number of
Year First Portfolios in
Position Elected or Columbia Funds Other
with Appointed Principal Occupation(s) Complex Overseen Directorships
Name, Address and Age Funds to Office/1/ During Past Five Years by Trustee Held
- -------------------------------------------------------------------------------------------------------------------------------
Disinterested Trustees (continued)
Thomas C. Theobald (Age 66) Trustee 1996 Managing Director, 124 Anixter International (network
27 West Monroe Street, William Blair Capital support equipment distributor),
Suite 3500 Partners (private equity Jones Lang LaSalle (real estate
Chicago, IL 60606 investing) since management services) and
September, 1994 MONY Group (life insurance).
(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 125/4/ Chairman of the Board of
359 Stickney Hill Road educational systems Directors, Enesco Group, Inc.
Hopkinton, NH 03229 needs (formerly General (designer, importer and
Manager, Global distributor of giftware and
Education Industry from collectibles).
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 124 NW Natural, a natural gas
100 S.W. Market Street Executive Officer, The service provider
#1500 Regence Group
Portland, OR 97207 (healthcare maintenance
organization) (formerly
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 126/3/ Lee Enterprises (print media),
399 Park Avenue Avenue Equity Partners WR Hambrecht + Co. (financial
Suite 3204 (private equity) since service provider) and First
New York, NY 10022 February, 1999 (formerly Health (healthcare).
Founding 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 125/5/ None
One Financial Center Chairman and Chief Operating
Boston, MA 02111 of the Officer of Columbia
Board Management Group, Inc.
and (Columbia Management)
President 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 Fund Trust (the
"CMG Funds Board"); simultaneous with that election, Patrick J. Simpson and
Richard L. Woolworth, who had been directors on the Columbia Board and
trustees on the CMG Funds Board, were appointed to serve as trustees of the
Liberty Board. The date shown is the earliest date on which a
trustee/director was elected or appointed to the board of a Fund in the
Columbia Funds Complex).
/2/ Mr. Mayer is an "interested person" (as defined in the Investment Company
Act of 1940 (1940 Act)) by reason of his affiliation with WR Hambrecht +
Co. 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.
133
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[GRAPHIC]
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 Accounting 2001 Controller of the Columbia Funds and of the
One Financial Center Officer and Liberty All-Star Funds since May, 2002; Chief
Boston, MA 02111 Controller Accounting Officer of the Columbia Funds and
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 Equity Funds 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 Equity Funds. This
report may also be used as sales literature when preceded or accompanied by the
current prospectus which provides details of sales charges, investment
objectives and operating policies of the fund and with the most recent copy of
the Columbia Funds Performance Update.
Annual Report:
Columbia Equity Funds
134
Columbia Equity Funds Annual Report, September 30, 2003
[LOGO] [LOGO](R) ColumbiaFunds
A Member of Columbia Management Group
(C) 2003 Columbia Funds Distributor, Inc.
One Financial Center, Boston, MA 02111-2621
800.345.6611 www.columbiafunds.com
G-02/57810-0903 (11/03) 03/3268
PRSRT STD
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[GRAPHIC]
Columbia Dividend
Income Fund
Annual Report
September 30, 2003
We are Columbia Funds!
INSIDE -- Management's discussion of the changes effective as of October 13,
2003.
-----------------------------------------------------------------------------
[GRAPHIC]
President's Message
[PHOTO]
Dear Shareholder:
As you know, your fund has long been associated with a larger investment
management organization owned and operated by FleetBoston Financial Corp. In
2001, the asset management division of FleetBoston was named Columbia
Management Group (CMG). Earlier this year, six of the asset management firms
brought together under the CMG umbrella were consolidated and renamed Columbia
Management Advisors, Inc.
On October 13, 2003, we took the natural next step in this process by
changing the name of our funds from Liberty to Columbia. For example, Liberty
Strategic Equity Fund was changed to Columbia Strategic Equity Fund. We also
modified certain fund names that existed under both the Liberty and Columbia
brands. In addition, the shareholders of Columbia Strategic Equity Fund held a
special meeting on October 21 and approved the proposals of a recent proxy. As
a result, the fund's strategy has changed to emphasize dividend income. The
fund's name was changed to Columbia Dividend Income Fund on October 27, 2003,
to better reflect its new strategy. A complete 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
shareholders to do business with us. All funds are now listed under "Columbia"
in the mutual fund listings section of your newspaper (depending on the
newspaper's listing requirements). All service inquiries are now handled by
Columbia Funds Services, Inc., the new name of our shareholder service
organization.
What has not changed 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 achieve your long-term financial
goals. Should you have questions, please call Columbia Funds at 800-345-6611.
In the report that follows, the lead manager of the fund's investment team
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
[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.
-----------------------------------------------------------------------------
Portfolio Managers' Report
NET ASSET VALUE PER SHARE AS Of 9/30/03 ($)
Class A 9.26
Class B 9.08
Class C 9.07
Class G 9.07
Class T 9.26
Class Z 9.26
DISTRIBUTIONS
DECLARED PER SHARE
11/1/02 - 9/30/03 ($)
Class A 0.11
Class B 0.05
Class C 0.05
Class G 0.05
Class T 0.12
Class Z 0.17
The Board of Trustees for Columbia Dividend Income Fund has approved the
change of the fund's fiscal year end from October 31 to September 30. As a
result, this report covers the 11-month period since the last annual report.
The next report you receive will be for the six-month period from October 1,
2003 through March 31, 2004.
Prior to October 27, 2003, the fund was known as Columbia Strategic Equity
Fund. On October 27, 2003, the fund changed its name to Columbia Dividend
Income Fund and changed its investment goal and strategies to emphasize
dividend-paying equity securities. In addition, the fund's primary benchmark
was changed to the Russell 1000 Value Index. We believe that this benchmark
will provide shareholders with a more useful comparison of the fund's relative
performance. During this reporting period, the fund's benchmark index was the
S&P 500 Index.
For the 11-month period ended September 30, 2003, class A shares of Columbia
Dividend Income Fund returned 9.92% without sales charge. The fund
underperformed the S&P 500 Index, which returned 14.33%, and the Morningstar(R)
Large Value Funds Category, which returned 14.94% for the same period./1/ On a
relative basis, the fund was hurt by its emphasis on higher-quality stocks,
value stocks and stocks with income-generation potential at a time when
investors sought out more economically-sensitive sectors of the market.
A RISK-TAKER'S MARKET
As the period began, the stock market was undergoing a fundamental shift.
Stocks had been declining for almost three years, weighed down in succession by
the Internet bust, a series of corporate accounting scandals and a persistently
sluggish economy. However, when signs of a genuine recovery began appearing in
the fall of 2002, investors flocked to companies that could leverage their
earnings in an economic upswing. Quality was no longer king, and even companies
with depressed margins and low credit ratings gained attention for their
turnaround potential. Downtrodden sectors such as technology became big winners
in the period that followed. While the fund was up significantly for the eleven
months, it could not keep pace with a market that was vigorously trying to make
up for the ground it had lost since the spring of 2000.
- ---------
1 (C)2003 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.
2 Holdings are disclosed as of September 30, 2003 and are subject to change.
UTILITIES AND ENERGY AIDED PERFORMANCE
Sectors that aided performance included utilities and energy companies,
which finally emerged from the extended aftershock of the Enron scandal. The
financial sector was also a positive force for the portfolio. Among the
individual strong performers was J.P. Morgan Chase & Co. (2.3% of net assets),
a new purchase that benefited from the resurgence in the capital markets./2/
Finally, McDonald's rebounded nicely in the first and second quarters of 2003,
buoyed by new management and the rollout of several new products. The stock
reached our price target and was subsequently sold from the portfolio.
TELECOMMUNICATIONS, CONSUMER STAPLES
HURT PERFORMANCE
The fund was hurt by its holdings in the telecommunications sector, notably
Bell companies Verizon Communications and SBC Communications (3.1% and 2.8% of
net assets, respectively). Competition in telecom remained intense, and
cutthroat pricing hurt revenues throughout the industry.
Sector breakdown as of September 30, 2003 (%)
[CHART]
Other: 0.2
Financials 29.3
Energy 13.7
Health care 11.1
Industrials 10.6
Utilities 8.4
Telecommunication services 7.7
Information technology 4.8
Consumer discretionary 5.7
Consumer staples 5.8
Materials 2.7
Sector breakdowns are calculated as a percentage of net assets. Because the
fund is actively managed, there can be no guarantee the fund will continue to
maintain these sectors in the future.
1
-----------------------------------------------------------------------------
TOP 10 HOLDINGS AS OF 9/30/03 (%)
Citigroup 5.0
Merck & Co. 3.3
Verizon
Communications 3.1
American
International
Group 3.1
Equity Office
Properties
Trust 3.0
U.S. Bancorp 3.0
Fannie Mae 2.9
ConocoPhillips 2.8
SBC
Communications 2.8
Exxon Mobil 2.4
Holdings are calculated as a percentage of net assets. Because the fund is
actively managed, there can be no guarantee the fund will continue to maintain
these holdings in the future.
Within consumer staples, we were hurt by our position in Sara Lee. Although
the stock was always attractively priced relative to the food group, we
concluded that it would have difficulty restructuring its assets in a way that
would not dilute the interest of existing shareholders. We sold the stock as
part of an overall reduction in the consumer staples category, from 18% of the
portfolio to almost 6%.
A NEW ROLE FOR DIVIDENDS
Our name change from Columbia Strategic Equity Fund to Columbia Dividend
Income Fund is consistent with a new focus on dividends as a component of total
return. The stimulus for this change was the dividend tax cut passed this
summer, which placed dividends on an equal footing with capital gains. Many
companies have responded to this legislation by passing their free cash flow on
to shareholders via a higher dividend. For example, in July, Citigroup (5.0% of
net assets) announced that it would increase its dividend by 75%. Similarly,
Waste Management (2.0% of net assets), which has never paid a meaningful
dividend, hiked its payout from just a penny a share to 75 cents a share for
2004.
As companies have reined in their capital spending, free cash flows have
moved higher. And today's corporate dividend payout rate is well below the
average of the last 15 years. We anticipate that many more companies will
increase their dividends or institute first-time dividends in the years ahead.
/s/ Scott L. Davis
/s/ Gregory M. Miller
Scott L. Davis and Gregory M. Miller have co-managed the fund since April 2003.
Mr. Davis and Mr. Miller have managed investment portfolios for Columbia
Management Advisors, Inc. and its predecessors since 1985.
As of October 2003, Richard Dahlberg, CFA, replaced Greg Miller as co-manager
of the fund. Mr. Dahlberg, senior portfolio manager and head of Columbia's
large-cap value team, joined the advisor in September 2003.
An investment in the fund offers the potential for long-term growth, but also
involves certain risks, including stock market fluctuations due 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.
2
-----------------------------------------------------------------------------
Performance Information - Columbia Dividend Income Fund
Value of a $10,000 investment
3/4/98--9/30/03
Performance of a $10,000 investment ($) 3/4/98 - 9/30/03
without sales with sales
charge charge
--------------------------------
Class A 11,608 10,941
--------------------------------
Class B 11,210 11,028
--------------------------------
Class C 11,199 11,199
--------------------------------
Class G 11,196 11,015
--------------------------------
Class T 11,602 10,935
--------------------------------
Class Z 11,913 n/a
[CHART]
Liberty Liberty Russell
Strategic Strategic 1000
Equity - A Equity - A Value S&P 500
Value @ NAV Value @ POP Index Index
----------- ----------- ---------- -------
03/04/1998 $ 10,000 $ 9,425 $ 10,000 $10,000
03/04/1998 - 03/31/1998 10,230 9,642 10,565 10,530
04/01/1998 - 04/30/1998 10,170 9,585 10,636 10,636
05/01/1998 - 05/31/1998 9,760 9,199 10,478 10,453
06/01/1998 - 06/30/1998 9,635 9,081 10,612 10,878
07/01/1998 - 07/31/1998 9,425 8,883 10,426 10,763
08/01/1998 - 08/31/1998 7,864 7,412 8,874 9,206
09/01/1998 - 09/30/1998 8,555 8,063 9,384 9,796
10/01/1998 - 10/31/1998 9,625 9,071 10,111 10,593
11/01/1998 - 11/30/1998 9,835 9,269 10,582 11,235
12/01/1998 - 12/31/1998 10,262 9,672 10,942 11,882
01/01/1999 - 01/31/1999 10,302 9,710 11,030 12,379
02/01/1999 - 02/28/1999 10,072 9,492 10,874 11,994
03/01/1999 - 03/31/1999 10,489 9,885 11,099 12,473
04/01/1999 - 04/30/1999 11,351 10,698 12,136 12,956
05/01/1999 - 05/31/1999 11,431 10,774 12,002 12,650
06/01/1999 - 06/30/1999 11,693 11,021 12,350 13,352
07/01/1999 - 07/31/1999 11,251 10,604 11,988 12,936
08/01/1999 - 08/31/1999 10,759 10,141 11,544 12,872
09/01/1999 - 09/30/1999 10,097 9,516 11,141 12,520
10/01/1999 - 10/31/1999 9,936 9,365 11,783 13,312
11/01/1999 - 11/30/1999 9,885 9,317 11,691 13,582
12/01/1999 - 12/31/1999 10,266 9,676 11,747 14,382
01/01/2000 - 01/31/2000 9,876 9,308 11,364 13,660
02/01/2000 - 02/29/2000 9,704 9,146 10,519 13,402
03/01/2000 - 03/31/2000 11,088 10,450 11,803 14,713
04/01/2000 - 04/30/2000 11,191 10,548 11,666 14,270
05/01/2000 - 05/31/2000 11,409 10,753 11,788 13,978
06/01/2000 - 06/30/2000 10,965 10,335 11,250 14,323
07/01/2000 - 07/31/2000 10,839 10,216 11,390 14,099
08/01/2000 - 08/31/2000 11,460 10,801 12,024 14,975
09/01/2000 - 09/30/2000 11,481 10,821 12,134 14,184
10/01/2000 - 10/31/2000 12,033 11,341 12,433 14,125
11/01/2000 - 11/30/2000 11,665 10,994 11,971 13,012
12/01/2000 - 12/31/2000 12,549 11,828 12,571 13,075
01/01/2001 - 01/31/2001 13,644 12,859 12,619 13,540
02/01/2001 - 02/28/2001 13,227 12,467 12,268 12,305
03/01/2001 - 03/31/2001 12,856 12,117 11,835 11,525
04/01/2001 - 04/30/2001 13,677 12,891 12,415 12,420
05/01/2001 - 05/31/2001 13,856 13,060 12,694 12,503
06/01/2001 - 06/30/2001 13,565 12,785 12,413 12,200
07/01/2001 - 07/31/2001 13,530 12,752 12,386 12,080
08/01/2001 - 08/31/2001 12,804 12,067 11,890 11,324
09/01/2001 - 09/30/2001 11,590 10,923 11,053 10,409
10/01/2001 - 10/31/2001 11,935 11,249 10,958 10,608
11/01/2001 - 11/30/2001 12,971 12,225 11,594 11,421
12/01/2001 - 12/31/2001 13,555 12,775 11,868 11,522
01/01/2002 - 01/31/2002 13,135 12,379 11,777 11,353
02/01/2002 - 02/28/2002 13,160 12,403 11,795 11,134
03/01/2002 - 03/31/2002 13,737 12,947 12,353 11,553
04/01/2002 - 04/30/2002 13,502 12,726 11,930 10,853
05/01/2002 - 05/31/2002 13,317 12,552 11,989 10,773
06/01/2002 - 06/30/2002 12,168 11,468 11,301 10,006
07/01/2002 - 07/31/2002 11,081 10,444 10,250 9,226
08/01/2002 - 08/31/2002 11,218 10,573 10,328 9,286
09/01/2002 - 09/30/2002 9,759 9,198 9,180 8,277
10/01/2002 - 10/31/2002 10,564 9,956 9,860 9,005
11/01/2002 - 11/30/2002 11,237 10,590 10,481 9,535
12/01/2002 - 12/31/2002 10,759 10,140 10,026 8,976
01/01/2003 - 01/30/2003 10,449 9,848 9,783 8,741
02/01/2003 - 02/28/2003 9,879 9,311 9,522 8,609
03/01/2003 - 03/31/2003 9,882 9,313 9,538 8,693
04/01/2003 - 04/30/2003 10,616 10,005 10,378 9,409
05/01/2003 - 05/31/2003 11,449 10,791 11,048 9,905
06/01/2003 - 06/30/2003 11,700 11,027 11,186 10,032
07/01/2003 - 07/31/2003 11,612 10,944 11,353 10,208
08/01/2003 - 08/31/2003 11,775 11,098 11,530 10,408
09/01/2003 - 09/30/2003 11,608 10,941 11,414 10,293
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 above illustration assumes a $10,000
investment made on March 4, 1998, and reinvestment of income and capital gains
distributions. On October 13, 2003, the fund's primary benchmark was changed to
the Russell 1000 Value Index. During the reporting period, the fund's primary
benchmark was the S&P 500 Index. The Standard & Poor's (S&P) 500 Index is an
unmanaged index that tracks the performance of 500 widely held, large
capitalization US stocks. The Russell 1000 Value Index is an unmanaged index
that measures the performance of those Russell 1000 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 information is
from March 4, 1998.
On October 27, 2003, the investment policies of the fund were modified. As a
result, the fund's performance for periods prior to that date may not be
representative of the performance it would have achieved had its current
investment policies been in place.
AVERAGE ANNUAL TOTAL RETURN AS OF 9/30/03 (%)
SHARE CLASS A B C G T Z
INCEPTION 11/25/02 11/25/02 11/25/02 3/4/98 3/4/98 3/4/98
- -----------------------------------------------------------------------------------------------
without with without with without with without with without with without
sales sales sales sales sales sales sales sales sales sales sales
charge charge charge charge charge charge charge charge charge charge charge
- -----------------------------------------------------------------------------------------------
11-month
(cumulative) 9.92 3.61 9.21 4.21 9.10 8.10 9.08 4.08 9.86 3.55 10.22
- -----------------------------------------------------------------------------------------------
1-year 18.97 12.15 18.26 13.26 18.14 17.14 18.12 13.12 18.91 12.09 19.57
- -----------------------------------------------------------------------------------------------
5-year 6.30 5.05 5.50 5.18 5.48 5.48 5.48 4.99 6.29 5.04 6.78
- -----------------------------------------------------------------------------------------------
Life 2.71 1.63 2.07 1.77 2.05 2.05 2.05 1.75 2.70 1.62 3.19
- -----------------------------------------------------------------------------------------------
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. 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 initial sales charge of 5.75% for class A shares,
the appropriate class B contingent deferred sales charge (CDSC) for the holding
period after purchase as follows: through first year-5%, second year-4%, third
year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the
class C CDSC of 1.00% that is applied to shares sold within the first year
after they are purchased. After holding class C shares for one year, you may
sell them at any time without paying a CDSC. For class G shares, the CDSC for
the holding period after purchase is as follows: through the first year-5%,
second year-4%, third year-4%, fourth year-4%, fifth year-3%, sixth year-2%,
seventh year-1%, thereafter-0%. For the class T shares, the "with sales charge"
returns include the maximum 5.75% charge. 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 Strategic
Equity Fund, the predecessor to the fund (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. 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.
3
[GRAPHIC]
Columbia Dividend Income Fund
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 2003
SHARES VALUE
------ -----
COMMON STOCKS - 99.76%
CONSUMER DISCRETIONARY - 5.66%
AUTO COMPONENTS - 1.70%
340,000 Delphi Corp............................ $ 3,077,000
-----------
HOTELS, RESTAURANTS & LEISURE - 1.14%
64,000 Wendy's International, Inc............. 2,067,200
-----------
MEDIA - 2.05%
140,000 Interpublic Group of Companies, Inc.*.. 1,976,800
28,000 McGraw-Hill Companies, Inc............. 1,739,640
-----------
3,716,440
-----------
SPECIALTY RETAIL - 0.77%
99,700 Office Depot, Inc.*.................... 1,400,785
-----------
CONSUMER STAPLES - 5.82%
BEVERAGES - 1.21%
48,000 PepsiCo, Inc........................... 2,199,840
-----------
FOOD PRODUCTS - 2.71%
148,000 ConAgra Foods, Inc..................... 3,143,520
60,000 Kraft Foods, Inc., Class A............. 1,770,000
-----------
4,913,520
-----------
HOUSEHOLD PRODUCTS - 0.88%
35,000 Clorox Co.............................. 1,605,450
-----------
PERSONAL PRODUCTS - 1.02%
36,000 Kimberly-Clark Corp.................... 1,847,520
-----------
ENERGY - 13.67%
ENERGY EQUIPMENT & SERVICES - 2.51%
64,000 Baker Hughes, Inc...................... 1,893,760
110,000 Halliburton Co......................... 2,667,500
-----------
4,561,260
-----------
OIL & GAS - 11.16%
94,000 BP PLC, ADR............................ 3,957,400
48,000 ChevronTexaco Corp..................... 3,429,600
92,000 ConocoPhillips......................... 5,037,000
120,000 Exxon Mobil Corp....................... 4,392,000
120,000 Marathon Oil Corp...................... 3,420,000
-----------
20,236,000
-----------
FINANCIALS - 29.26%
BANKS - 8.51%
50,000 Bank of America Corp................... 3,902,000
80,000 Bank of New York Co., Inc.............. 2,328,800
SHARES VALUE
------ -----
BANKS (CONTINUED)
70,000 Bank One Corp............................. $ 2,705,500
20,000 Fifth Third Bancorp....................... 1,109,400
225,000 U.S. Bancorp.............................. 5,397,750
-----------
15,443,450
-----------
DIVERSIFIED FINANCIALS - 11.53%
14,000 American Express Co....................... 630,840
200,000 Citigroup, Inc............................ 9,102,000
75,000 Fannie Mae................................ 5,265,000
120,000 J.P. Morgan Chase & Co.................... 4,119,600
40,000 State Street Corp......................... 1,800,000
-----------
20,917,440
-----------
INSURANCE - 6.18%
98,000 American International Group, Inc......... 5,654,600
95,000 Lincoln National Corp..................... 3,361,100
40,000 MBIA, Inc................................. 2,198,800
-----------
11,214,500
-----------
REAL ESTATE - 3.04%
200,000 Equity Office Properties Trust, REIT...... 5,506,000
-----------
HEALTH CARE - 11.14%
HEALTH CARE PROVIDERS & SERVICES - 3.04%
62,000 Aetna, Inc................................ 3,783,860
52,000 McKesson Corp............................. 1,731,080
-----------
5,514,940
-----------
PHARMACEUTICALS - 8.10%
60,000 Abbott Laboratories....................... 2,553,000
118,000 Bristol-Myers Squibb Co................... 3,027,880
120,000 Merck & Co., Inc.......................... 6,074,400
100,000 Pfizer, Inc............................... 3,038,000
-----------
14,693,280
-----------
INDUSTRIALS - 10.64%
AEROSPACE & DEFENSE - 4.82%
100,000 Honeywell International, Inc.............. 2,635,000
80,000 Raytheon Co............................... 2,240,000
50,000 United Technologies Corp.................. 3,864,000
-----------
8,739,000
-----------
COMMERCIAL SERVICES & SUPPLIES - 3.99%
100,000 Automatic Data Processing, Inc............ 3,585,000
140,000 Waste Management, Inc..................... 3,663,800
-----------
7,248,800
-----------
INDUSTRIAL CONGLOMERATES - 1.83%
84,000 Textron, Inc.............................. 3,313,800
-----------
See Notes to Financial Statements.
4
Columbia Dividend Income Fund
PORTFOLIO OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2003
SHARES VALUE
------ -----
INFORMATION TECHNOLOGY - 4.77%
COMMUNICATIONS EQUIPMENT - 1.29%
150,000 Nokia Oyj, ADR............................... $ 2,340,000
-----------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.05%
120,000 Celestica, Inc.*............................. 1,903,200
-----------
IT CONSULTING & SERVICES - 2.43%
98,000 Accenture Ltd., Class A*..................... 2,189,320
110,000 Electronic Data Systems Corp................. 2,222,000
-----------
4,411,320
-----------
MATERIALS - 2.66%
CHEMICALS - 1.10%
44,000 Air Products & Chemicals, Inc................ 1,984,400
-----------
PAPER & FOREST PRODUCTS - 1.56%
70,000 MeadWestvaco Corp............................ 1,785,000
18,000 Weyerhaeuser Co.............................. 1,052,100
-----------
2,837,100
-----------
TELECOMMUNICATION SERVICES - 7.71%
DIVERSIFIED TELECOMMUNICATION SERVICES - 7.71%
140,000 BellSouth Corp............................... 3,315,200
225,000 SBC Communications, Inc...................... 5,006,250
175,000 Verizon Communications, Inc.................. 5,677,000
-----------
13,998,450
-----------
UTILITIES - 8.43%
ELECTRIC UTILITIES - 7.05%
80,000 American Electric Power Co., Inc............. 2,400,000
100,000 Consolidated Edison, Inc..................... 4,076,000
100,000 Public Service Enterprise Group, Inc......... 4,200,000
90,000 TXU Corp..................................... 2,120,400
-----------
12,796,400
-----------
MULTI-UTILITIES & UNREGULATED POWER - 1.38%
140,000 Duke Energy Corp............................. 2,493,400
-----------
TOTAL INVESTMENTS - 99.76%.............. 180,980,495
------------
(Cost $190,545,414) (A)
NET OTHER ASSETS AND LIABILITIES - 0.24% 435,088
------------
NET ASSETS - 100.0%..................... $181,415,583
============
- ---------------------------
* Non-income producing security.
(A) Cost for federal income tax purposes is $191,136,191.
ACRONYM NAME
- ------- ----
ADR American Depositary Receipt
REIT Real Estate Investment Trust
See Notes to Financial Statements.
5
[GRAPHIC]
Columbia Dividend Income Fund
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2003
ASSETS:
Investments, at cost...................... $190,545,414
------------
Investments, at value..................... $180,980,495
Cash...................................... 39,817
Receivable for:
Investments sold........................ 560,184
Fund shares sold........................ 107,163
Dividends............................... 346,895
Deferred Trustees' compensation plan...... 11,947
------------
Total Assets........................... 182,046,501
------------
LIABILITIES:
Payable for:
Fund shares repurchased................. 369,343
Management fee.......................... 115,788
Administration fee...................... 9,927
Transfer agent fee...................... 48,414
Pricing and bookkeeping fees............ 3,428
Trustees' fees.......................... 847
Distribution and service fees........... 33,213
Deferred Trustees' fees................... 11,947
Other liabilities......................... 38,011
------------
Total Liabilities...................... 630,918
------------
NET ASSETS................................. $181,415,583
============
COMPOSITION OF NET ASSETS:
Par value (Note 5)........................ $ 19,616
Paid-in capital in excess of par value.... 223,146,802
Undistributed net investment income....... 145,092
Accumulated net realized loss............. (32,331,008)
Net unrealized depreciation on investments (9,564,919)
------------
NET ASSETS................................. $181,415,583
============
See Notes to Financial Statements.
6
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
SEPTEMBER 30, 2003(A)
CLASS A:
Net assets.............................................. $ 563,740
Shares outstanding...................................... 60,907
-----------
Net asset value per share............................... $ 9.26 (b)
===========
Maximum offering price per share
($9.26/0.9425)......................................... $ 9.82 (c)
===========
CLASS B:
Net assets.............................................. $ 1,135,588
Shares outstanding...................................... 125,079
-----------
Net asset value and offering price per share............ $ 9.08 (b)
===========
CLASS C:
Net assets.............................................. $ 151,576
Shares outstanding...................................... 16,707
-----------
Net asset value and offering price per share............ $ 9.07 (b)
===========
CLASS G:
Net assets.............................................. $ 9,650,387
Shares outstanding...................................... 1,064,019
-----------
Net asset value and offering price per share............ $ 9.07(b)
===========
CLASS T:
Net assets.............................................. $96,638,132
Shares outstanding...................................... 10,436,566
-----------
Net asset value per share............................... $ 9.26(b)
===========
Maximum offering price per share
($9.26/0.9425)......................................... $ 9.82(c)
===========
CLASS Z:
Net assets.............................................. $73,276,160
Shares outstanding...................................... 7,913,041
-----------
Net asset value, offering and redemption price per share $ 9.26
===========
- -------------------
(a) Effective November 25, 2002, the Galaxy Strategic Equity Fund Retail B,
Retail A and Trust shares were reorganized as Liberty Strategic Equity Fund
Class G, Class T and Class Z shares, respectively. Subsequently, the Fund
began offering Class A, Class B and Class C shares. Effective October 27,
2003, the Fund was renamed Columbia Dividend Income Fund.
(b) Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
(c) On sales of $50,000 or more the offering price is reduced.
See Notes to Financial Statements.
7
[GRAPHIC]
Columbia Dividend Income Fund
STATEMENTS OF OPERATIONS
PERIOD ENDED YEAR ENDED
SEPTEMBER 30, OCTOBER 31,
2003 (A) 2002
------------- -----------
INVESTMENT INCOME:
Dividends (Note 2)...................................................................... $ 4,792,568 $ 652,334
Interest (Note 2)....................................................................... 11,139 85,226
Other Income............................................................................ -- 1,872
Less: foreign withholding tax........................................................... (33,137) (1,397)
------------- -----------
Total Investment Income............................................................... 4,770,570 738,035
------------- -----------
EXPENSES:
Investment advisory fee (Note 4)........................................................ 1,226,845 381,107
Administration fee (Note 4)............................................................. 109,294 33,150
Distribution fee: (Note 4)
Class B............................................................................... 2,241 --
Class C............................................................................... 595 --
Class G............................................................................... 61,316 16,471
Service fee: (Note 4)
Class A............................................................................... 493 --
Class B............................................................................... 747 --
Class C............................................................................... 197 --
Class G............................................................................... 28,083 7,391
Class T............................................................................... 245,594 24,133
Transfer agent fee: (Note 4)
Class A............................................................................... 652 --
Class B............................................................................... 1,119 --
Class C............................................................................... 228 --
Class G............................................................................... 32,224 9,044
Class T............................................................................... 237,978 24,947
Class Z............................................................................... 78,677 1,997
Pricing and bookkeeping fees (Note 4)................................................... 41,402 39,849
Trustees' fees (Note 4)................................................................. 6,951 739
Custody fee............................................................................. 17,459 9,477
Registration fee........................................................................ 52,141 26,445
Reports to shareholders................................................................. 22,750 19,722
Amortization of organization expense (Note 2)........................................... 1,145 3,398
Other expenses.......................................................................... 38,768 27,439
------------- -----------
Total Operating Expenses.............................................................. 2,206,899 625,309
Less: Fees waived/reimbursed by Advisor................................................. (3,832) (125,157)
Less: Fees waived by Transfer Agent:
Class T............................................................................... (8,220) --
Class Z............................................................................... (13,474) --
Custody earnings credit................................................................. (198) --
------------- -----------
Net Expenses.......................................................................... 2,181,175 500,152
------------- -----------
NET INVESTMENT INCOME.................................................................... 2,589,395 237,883
------------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY: (NOTES 2 & 7)
Net realized loss on investments........................................................ (9,261,189) (2,006,252)
Net realized gain on redemptions-in-kind................................................ -- 14,893,056
Net change in unrealized appreciation (depreciation) on investments and foreign currency 14,197,391 (7,411,274)
------------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY (NOTES 2 & 7) 4,936,202 5,475,530
------------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..................................... $ 7,525,597 $ 5,713,413
============= ===========
- -------------------
(a) The Fund has changed its fiscal year end from October 31 to September 30.
See Notes to Financial Statements.
8
[GRAPHIC]
Columbia Dividend Income Fund
STATEMENTS OF CHANGES IN NET ASSETS
PERIOD ENDED YEAR ENDED
SEPTEMBER 30, OCTOBER 31,
2003 (A) 2002
------------- ------------
NET ASSETS AT BEGINNING OF PERIOD........................................................ $ 28,567,246 $113,594,701
------------- ------------
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS:
Net investment income................................................................... 2,589,395 237,883
Net realized gain (loss) on investments and redemptions-in-kind......................... (9,261,189) 12,886,804
Net change in unrealized appreciation (depreciation) on investments and foreign currency 14,197,391 (7,411,274)
------------- ------------
Net Increase (Decrease) in Net Assets Resulting from Operations......................... 7,525,597 5,713,413
------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Class A............................................................................... (3,464) --
Class B............................................................................... (2,610) --
Class C............................................................................... (235) --
Class G............................................................................... (58,829) --
Class T............................................................................... (1,134,919) (14,787)
Class Z............................................................................... (1,326,619) (270,326)
Net realized gains:
Class G............................................................................... -- (92,957)
Class T............................................................................... -- (321,990)
Class Z............................................................................... -- (4,065,865)
------------- ------------
Total distributions.................................................................. (2,526,676) (4,765,925)
------------- ------------
Net increase (decrease) in net assets from share transactions (b)....................... 147,849,416 (85,974,943)
------------- ------------
Net increase (decrease) in net assets................................................... 152,848,337 (85,027,455)
------------- ------------
NET ASSETS at end of period............................................................. $181,415,583 $ 28,567,246
============= ============
Undistributed net investment income..................................................... $ 145,092 $ 32,838
============= ============
YEAR ENDED
OCTOBER 31,
2001
------------
NET ASSETS AT BEGINNING OF PERIOD........................................................ $103,617,266
------------
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS:
Net investment income................................................................... 795,088
Net realized gain (loss) on investments and redemptions-in-kind......................... 4,900,020
Net change in unrealized appreciation (depreciation) on investments and foreign currency (7,266,203)
------------
Net Increase (Decrease) in Net Assets Resulting from Operations......................... (1,571,095)
------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Class A............................................................................... --
Class B............................................................................... --
Class C............................................................................... --
Class G............................................................................... --
Class T............................................................................... (24,364)
Class Z............................................................................... (780,029)
Net realized gains:
Class G............................................................................... (49,633)
Class T............................................................................... (272,087)
Class Z............................................................................... (2,945,509)
------------
Total distributions.................................................................. (4,071,622)
------------
Net increase (decrease) in net assets from share transactions (b)....................... 15,620,152
------------
Net increase (decrease) in net assets................................................... 9,977,435
------------
NET ASSETS at end of period............................................................. $113,594,701
============
Undistributed net investment income..................................................... $ 77,853
============
- -------------------
(a) The Fund has changed its fiscal year end from October 31 to September 30.
(b) For details on share transactions by classes, see Statement of Changes in
Net Assets - Capital Stock Activity on pages 10-11.
See Notes to Financial Statements.
9
STATEMENTS OF CHANGES IN NET ASSETS -- CAPITAL STOCK ACTIVITY
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, OCTOBER 31, OCTOBER 31,
2003 (A)(B) 2002 2001
------------- ------------ -----------
SHARE TRANSACTIONS:
Class A:
Net proceeds from sales of shares.................. $ 648,541 $ -- $ --
Issued to shareholders in reinvestment of dividends 3,237 -- --
Cost of shares repurchased......................... (99,798) -- --
------------- ------------ -----------
Net Increase..................................... $ 551,980 $ -- $ --
------------- ------------ -----------
Class B:
Net proceeds from sales of shares.................. $ 1,466,777 $ -- $ --
Issued to shareholders in reinvestment of dividends 2,480 -- --
Cost of shares repurchased......................... (350,847) -- --
------------- ------------ -----------
Net Increase..................................... $ 1,118,410 $ -- $ --
------------- ------------ -----------
Class C:
Net proceeds from sales of shares.................. $ 743,182 $ -- $ --
Issued to shareholders in reinvestment of dividends 111 -- --
Cost of shares repurchased......................... (624,830) -- --
------------- ------------ -----------
Net Increase..................................... $ 118,463 $ -- $ --
------------- ------------ -----------
Class G:
Net proceeds from sales of shares.................. $ 143,452 $ 607,331 $ 1,270,603
Issued in connection with acquisition (Note 1)..... 10,032,885 -- --
Issued to shareholders in reinvestment of dividends 56,662 92,335 49,633
Cost of shares repurchased......................... (3,057,348) (449,690) (455,687)
------------- ------------ -----------
Net Increase..................................... $ 7,175,651 $ 249,976 $ 864,549
------------- ------------ -----------
Class T:
Net proceeds from sales of shares.................. $ 2,162,435 $ 1,956,588 $ 3,634,086
Issued in connection with acquisition (Note 1)..... 101,580,964 -- --
Issued to shareholders in reinvestment of dividends 1,097,380 334,609 293,753
Cost of shares repurchased......................... (17,083,667) (2,756,097) (3,656,553)
------------- ------------ -----------
Net Increase (Decrease).......................... $ 87,757,112 $ (464,900) $ 271,286
------------- ------------ -----------
Class Z:
Net proceeds from sales of shares.................. $ 14,764,524 $ 9,952,015 $14,299,867
Issued in connection with acquisition (Note 1)..... 76,942,534 -- --
Redemptions-in-kind (c)............................ -- (93,827,039) --
Issued to shareholders in reinvestment of dividends 306,107 3,813,095 3,501,503
Cost of shares repurchased......................... (40,885,365) (5,698,090) (3,317,053)
------------- ------------ -----------
Net Increase (Decrease).......................... $ 51,127,800 $(85,760,019) $14,484,317
------------- ------------ -----------
Total Share Transactions........................... $147,849,416 $(85,974,943) $15,620,152
------------- ------------ -----------
- -------------------
(a) The Fund has changed its fiscal year end from October 31 to September 30.
(b) Effective November 25, 2002, the Galaxy Strategic Equity Fund Retail B,
Retail A and Trust shares were reorganized as Liberty Strategic Equity Fund
Class G, Class T and Class Z shares, respectively. Subsequently, the Fund
began offering Class A, Class B and Class C shares. Effective October 27,
2003, the Fund was renamed Columbia Dividend Income Fund.
(c) The Fund had a redemption-in-kind on January 11, 2002, which resulted in a
redemption out of the Fund of $93,827,039. The redemption is comprised of
securities and cash in the amounts of $83,530,666 and $10,296,373,
respectively.
See Notes to Financial Statements.
10
STATEMENTS OF CHANGES IN NET ASSETS -- CAPITAL STOCK ACTIVITY (CONTINUED)
PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, OCTOBER 31, OCTOBER 31,
2003 (A)(B) 2002 2001
------------- ----------- -----------
OTHER INFORMATION:
SHARES TRANSACTIONS:
Class A:
Sold............................................... 72,731 -- --
Issued to shareholders in reinvestment of dividends 345 -- --
Repurchased........................................ (12,169) -- --
------------- ----------- -----------
Net Increase..................................... 60,907 -- --
------------- ----------- -----------
Class B:
Sold............................................... 164,196 -- --
Issued to shareholders in reinvestment of dividends 268 -- --
Repurchased........................................ (39,385) -- --
------------- ----------- -----------
Net Increase..................................... 125,079 -- --
------------- ----------- -----------
Class C:
Sold............................................... 86,238 -- --
Issued to shareholders in reinvestment of dividends 12 -- --
Repurchased........................................ (69,543) -- --
------------- ----------- -----------
Net Increase..................................... 16,707 -- --
------------- ----------- -----------
Class G:
Sold............................................... 16,877 58,075 104,637
Issued in connection with acquisition (Note 1)..... 1,137,552 -- --
Issued to shareholders in reinvestment of dividends 6,525 8,802 4,929
Repurchased........................................ (347,287) (48,228) (27,848)
------------- ----------- -----------
Net Increase..................................... 813,667 18,649 81,718
------------- ----------- -----------
Class T:
Sold............................................... 238,068 184,929 264,265
Issued in connection with acquisition (Note 1)..... 11,278,336 -- --
Issued to shareholders in reinvestment of dividends 122,918 31,497 28,801
Repurchased........................................ (1,972,609) (285,078) (267,453)
------------- ----------- -----------
Net Increase (Decrease).......................... 9,666,713 (68,652) 25,613
------------- ----------- -----------
Class Z:
Sold............................................... 1,688,522 985,895 1,293,445
Issued in connection with acquisition (Note 1)..... 8,539,200 -- --
Issued to shareholders in reinvestment of dividends 34,595 356,985 342,181
Redemptions-in-kind................................ -- (8,728,097) --
Repurchased........................................ (4,674,712) (552,015) (304,437)
------------- ----------- -----------
Net Increase (Decrease).......................... 5,587,605 (7,937,232) 1,331,189
------------- ----------- -----------
- -------------------
(a) The Fund has changed its fiscal year end from October 31 to September 30.
(b) Effective November 25, 2002, the Galaxy Strategic Equity Fund Retail B,
Retail A and Trust shares were reorganized as Liberty Strategic Equity Fund
Class G, Class T and Class Z shares, respectively. Subsequently, the Fund
began offering Class A, Class B and Class C shares. Effective October 27,
2003, the Fund was renamed Columbia Dividend Income Fund.
See Notes to Financial Statements.
11
[GRAPHIC]
Columbia Dividend Income Fund
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD IS AS FOLLOWS:
PERIOD ENDED
SEPTEMBER 30,
2003 (A)(B)(C)
CLASS A SHARES --------------
Net Asset Value, Beginning of Period........... $ 9.01
--------------
Income from Investment Operations:
Net investment income/(d)(e)/.................. 0.11
Net realized and unrealized gain on investments 0.25
--------------
Total from Investment Operations............... 0.36
--------------
Less Distributions Declared to Shareholders:
From net investment income..................... (0.11)
--------------
Net Asset Value, End of Period................. $ 9.26
==============
Total return/(f)(g)(h)/........................ 4.02%
==============
Ratios to Average Net Assets/Supplemental Data:
Expenses/(i)(j)/............................... 1.42%
Net investment income/(i)(j)/.................. 1.38%
Waiver/reimbursement/(j)/...................... --%/(k)/
Portfolio turnover rate/(g)/................... 33%
Net assets, end of period (000's).............. $ 564
- -------------------
(a) On October 13, 2003, the Liberty Strategic Equity Fund was renamed Columbia
Strategic Equity Fund. On October 27, 2003, the Fund was again renamed
Columbia Dividend Income Fund.
(b) The Fund has 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 before reimbursement of certain expenses
for the period ended September 30, 2003 was $0.11.
(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 Advisor not waived 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 less than 0.01%.
See Notes to Financial Statements.
12
Columbia Dividend Income Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD IS AS FOLLOWS:
PERIOD ENDED
SEPTEMBER 30,
2003 (A)(B)(C)
CLASS B SHARES --------------
Net Asset Value, Beginning of Period........... $ 8.82
--------------
Income from Investment Operations:
Net investment income/(d)(e)/.................. 0.05
Net realized and unrealized gain on investments 0.26
--------------
Total from Investment Operations............... 0.31
--------------
Less Distributions Declared to Shareholders:
From net investment income..................... (0.05)
--------------
Net Asset Value, End of Period................. $ 9.08
==============
Total return/(f)(g)(h)/........................ 3.51%
==============
Ratios to Average Net Assets/Supplemental Data:
Expenses/(i)(j)/............................... 2.34%
Net investment income/(i)(j)/.................. 0.47%
Waiver/reimbursement/(j)/...................... --%/(k)/
Portfolio turnover rate/(g)/................... 33%
Net assets, end of period (000's).............. $1,136
- -------------------
(a) On October 13, 2003, the Liberty Strategic Equity Fund was renamed Columbia
Strategic Equity Fund. On October 27, 2003, the Fund was again renamed
Columbia Dividend Income Fund.
(b) The Fund has 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 before reimbursement of certain expenses
for the period ended September 30, 2003 was $0.05.
(f) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(g) Not annualized.
(h) Had the Advisor not waived 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 less than 0.01%.
See Notes to Financial Statements.
13
Columbia Dividend Income Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD IS AS FOLLOWS:
PERIOD ENDED
SEPTEMBER 30,
2003 (A)(B)(C)
CLASS C SHARES --------------
Net Asset Value, Beginning of Period........... $ 8.82
--------------
Income from Investment Operations:
Net investment income/(d)(e)/.................. 0.07
Net realized and unrealized gain on investments 0.23
--------------
Total from Investment Operations............... 0.30
--------------
Less Distributions Declared to Shareholders:
From net investment income..................... (0.05)
--------------
Net Asset Value, End of Period................. $ 9.07
==============
Total return/(f)(g)(h)/........................ 3.41%
==============
Ratios to Average Net Assets/Supplemental Data:
Expenses/(i)(j)/............................... 2.18%
Net investment income/(i)(j)/.................. 0.95%
Waiver/reimbursement/(j)/...................... --%/(k)/
Portfolio turnover rate/(g)/................... 33%
Net assets, end of period (000's).............. $ 152
- -------------------
(a) On October 13, 2003, the Liberty Strategic Equity Fund was renamed Columbia
Strategic Equity Fund. On October 27, 2003, the Fund was again renamed
Columbia Dividend Income Fund.
(b) The Fund has 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 before reimbursement of certain expenses
for the period ended September 30, 2003 was $0.07.
(f) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(g) Not annualized.
(h) Had the Advisor 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%.
See Notes to Financial Statements.
14
Columbia Dividend Income Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
PERIOD ENDED
SEPTEMBER 30, --------------
2003 (A)(B)(C) 2002
CLASS G SHARES -------------- -------
Net Asset Value, Beginning of Period...................... $ 8.36 $ 9.87
-------------- -------
Income from Investment Operations:
Net investment income (loss)/(e)/......................... 0.05/(f)/ (0.07)/(f)/
Net realized and unrealized gain (loss) on investments and
foreign currency......................................... 0.71 (1.05)/(g)/
-------------- -------
Total from Investment Operations.......................... 0.76 (1.12)
-------------- -------
Less Distributions Declared to Shareholders:
From net investment income................................ (0.05) --
From net realized gains................................... -- (0.39)
-------------- -------
Total Distributions Declared to Shareholders.............. (0.05) (0.39)
-------------- -------
Net Asset Value, End of Period............................ $ 9.07 $ 8.36
============== =======
Total return/(i)/......................................... 9.08%/(j) (k)/ (12.16)%/(k)/
============== =======
Ratios to Average Net Assets/Supplemental Data:
Expenses/(l)/............................................. 2.21%/(m)/ 2.17%
Net investment income(loss)/(l)/.......................... 0.71%/(m)/ (0.72)%
Waiver/reimbursement...................................... --%/(m)(n)/ 0.25%
Portfolio turnover rate................................... 33 %/(j)/ 65%/(o)/
Net assets, end of period (000's)......................... $9,650 $ 2,093
YEAR ENDED OCTOBER 31,
-------------------------------------------------
2001 2000 1999 1998 (D)
CLASS G SHARES ------ ------ ------ --------
Net Asset Value, Beginning of Period...................... $10.37 $ 9.84 $ 9.61 $10.00
------ ------ ------ --------
Income from Investment Operations:
Net investment income (loss)/(e)/......................... (0.06)/(f)/ (0.04) (0.02)/(f)/ (0.02)
Net realized and unrealized gain (loss) on investments and
foreign currency......................................... (0.11) 1.75 0.26 (0.37)
------ ------ ------ --------
Total from Investment Operations.......................... (0.17) 1.71 0.24 (0.39)
------ ------ ------ --------
Less Distributions Declared to Shareholders:
From net investment income................................ -- --/(h)/ -- --
From net realized gains................................... (0.33) (1.18) (0.01) --
------ ------ ------ --------
Total Distributions Declared to Shareholders.............. (0.33) (1.18) (0.01) --
------ ------ ------ --------
Net Asset Value, End of Period............................ $ 9.87 $10.37 $ 9.84 $ 9.61
====== ====== ====== ========
Total return/(i)/......................................... (1.71)%/(k)/ 20.33%/(k)/ 2.50%/(k)/ (4.76)%/(j) (k)/
====== ====== ====== ========
Ratios to Average Net Assets/Supplemental Data:
Expenses/(l)/............................................. 2.02% 1.95% 1.84% 2.01%/(m)/
Net investment income(loss)/(l)/.......................... (0.53)% (0.35)% (0.24)% (0.55)%/(m)/
Waiver/reimbursement...................................... 0.24% 0.40% 0.56% 1.04%/(m)/
Portfolio turnover rate................................... 81% 81% 79% 30%/(j)/
Net assets, end of period (000's)......................... $2,286 $1,555 $1,348 $ 583
- -------------------
(a) On October 13, 2003, the Liberty Strategic Equity Fund was renamed Columbia
Strategic Equity Fund. On October 27, 2003, the Fund was again renamed
Columbia Dividend Income Fund.
(b) The Fund has changed its fiscal year end from October 31 to September 30.
(c) On November 25, 2002, Galaxy Strategic Equity, Retail B shares were
redesignated Liberty Strategic Equity Fund, Class G shares.
(d) The Fund commenced operations on March 4, 1998.
(e) Net investment income (loss) per share before reimbursement of certain
expenses for the period ended September 30, 2003 and the years ended
October 31, 2002, 2001, 2000, 1999 and 1998 was $0.05, $(0.10), $(0.08),
$(0.08), $(0.08) and $(0.06), respectively.
(f) Per share data was calculated using average shares outstanding during the
period.
(g) 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.
(h) Rounds to less than $0.01 per share.
(i) Total return at net asset value assuming all distributions reinvested and
no contingent deferred sales charge.
(j) Not annualized.
(k) Had the Advisor and/or any of its affiliates not waived or reimbursed a
portion of expenses, total return would have been reduced.
(l) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(m) Annualized.
(n) Rounds to less than 0.01%.
(o) Portfolio turnover rate excludes securities delivered from processing
redemptions-in-kind.
See Notes to Financial Statements.
15
Columbia Dividend Income Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
PERIOD ENDED
SEPTEMBER 30, --------------
2003 (A)(B)(C) 2002
CLASS T SHARES -------------- -------
Net Asset Value, Beginning of Period...................... $ 8.54 $ 10.02
-------------- -------
Income from Investment Operations:
Net investment income/(e)/................................ 0.11/(f)/ 0.01/(f)/
Net realized and unrealized gain (loss) on investments and
foreign currency......................................... 0.73 (1.08)/(h)/
-------------- -------
Total from Investment Operations.......................... 0.84 (1.07)
-------------- -------
Less Distributions Declared to Shareholders:
From net investment income................................ (0.12) (0.02)
From net realized gains................................... -- (0.39)
-------------- -------
Total Distributions Declared to Shareholders.............. (0.12) (0.41)
-------------- -------
Net Asset Value, End of Period............................ $ 9.26 $ 8.54
============== =======
Total return/(i)/......................................... 9.86%/(j) (k)/ (11.50)%/(k)/
============== =======
Ratios to Average Net Assets/Supplemental Data:
Expenses/(l)/............................................. 1.49%/(m)/ 1.40%
Net investment income/(l)/................................ 1.42%/(m)/ 0.05%
Waiver/reimbursement...................................... 0.01%/(m)/ 0.29%
Portfolio turnover rate................................... 33 %/(j)/ 65%/(n)/
Net assets, end of period (000's)......................... $96,638 $ 6,578
YEAR ENDED OCTOBER 31,
-------------------------------------------------
2001 2000 1999 1998 (D)
CLASS T SHARES ------ ------ ------ --------
Net Asset Value, Beginning of Period...................... $10.46 $ 9.89 $ 9.62 $10.00
------ ------ ------ --------
Income from Investment Operations:
Net investment income/(e)/................................ 0.03/(f)/ 0.04 0.04/(f)/ --/(g)/
Net realized and unrealized gain (loss) on investments and
foreign currency......................................... (0.11) 1.75 0.27 (0.38)
------ ------ ------ --------
Total from Investment Operations.......................... (0.08) 1.79 0.31 (0.38)
------ ------ ------ --------
Less Distributions Declared to Shareholders:
From net investment income................................ (0.03) (0.04) (0.03) --
From net realized gains................................... (0.33) (1.18) (0.01) --
------ ------ ------ --------
Total Distributions Declared to Shareholders.............. (0.36) (1.22) (0.04) --
------ ------ ------ --------
Net Asset Value, End of Period............................ $10.02 $10.46 $ 9.89 $ 9.62
====== ====== ====== ========
Total return/(i)/......................................... (0.83)%/(k)/ 21.09%/(k)/ 3.25%/(k)/ (3.75)%/(j)(k)/
====== ====== ====== ========
Ratios to Average Net Assets/Supplemental Data:
Expenses/(l)/............................................. 1.24% 1.20% 1.19% 1.40%/(m)/
Net investment income/(l)/................................ 0.25% 0.40% 0.41% 0.06%/(m)/
Waiver/reimbursement...................................... 0.26% 0.40% 0.44% 1.01%/(m)/
Portfolio turnover rate................................... 81% 81% 79% 30%/(j)/
Net assets, end of period (000's)......................... $8,400 $8,505 $8,229 $4,051
- ---------
(a) On October 13, 2003, the Liberty Strategic Equity Fund was renamed Columbia
Strategic Equity Fund. On October 27, 2003, the Fund was again renamed
Columbia Dividend Income Fund.
(b) The Fund has changed its fiscal year end from October 31 to September 30.
(c) On November 25, 2002, Galaxy Strategic Equity, Retail A shares were
redesignated Liberty Strategic Equity Fund, Class T shares.
(d) The Fund commenced operations on March 4, 1998.
(e) Net investment income (loss) per share before reimbursement of certain
expenses for the period ended September 30, 2003 and the years ended
October 31, 2002, 2001, 2000, 1999 and 1998 was $0.11, $(0.02), $0.00,
$0.00, $0.00 and $0.00, respectively.
(f) Per share data was calculated using average shares outstanding during the
period.
(g) Rounds to less than $0.01 per share.
(h) 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.
(i) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(j) Not annualized.
(k) Had the Advisor and/or any of its affiliates not waived or reimbursed a
portion of expenses, total return would have been reduced.
(l) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(m) Annualized.
(n) Portfolio turnover rate excludes securities delivered from processing
redemptions-in-kind.
See Notes to Financial Statements.
16
Columbia Dividend Income Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
PERIOD ENDED
SEPTEMBER 30, --------------
2003 (A)(B)(C) 2002
CLASS Z SHARES -------------- -------
Net Asset Value, Beginning of Period...................... $ 8.56 $ 10.03
-------------- -------
Income from Investment Operations:
Net investment income/(e)/................................ 0.15 /(f)/ 0.06 /(f)/
Net realized and unrealized gain (loss) on investments and
foreign currency......................................... 0.72 (1.07)/(g)/
-------------- -------
Total from Investment Operations.......................... 0.87 (1.01)
-------------- -------
Less Distributions Declared to Shareholders:
From net investment income................................ (0.17) (0.07)
From net realized gains................................... -- (0.39)
-------------- -------
Total Distributions Declared to Shareholders.............. (0.17) (0.46)
-------------- -------
Net Asset Value, End of Period............................ $ 9.26 $ 8.56
============== =======
Total return/(h)/......................................... 10.22%/(i)(j)/ (11.07)%/(j)/
============== =======
Ratios to Average Net Assets/Supplemental Data:
Expenses/(k)/............................................. 1.02%/(l)/ 0.82%
Net investment income/(k)/................................ 1.89%/(l)/ 0.63%
Waiver/reimbursement...................................... 0.02%/(l)/ 0.24%
Portfolio turnover rate................................... 33%/(i)/ 65%/(m)/
Net assets, end of period (000's)......................... $73,276 $19,896
YEAR ENDED OCTOBER 31,
-----------------------------------------------------
2001 2000 1999 1998 (D)
CLASS Z SHARES -------- ------- ------- --------
Net Asset Value, Beginning of Period...................... $ 10.48 $ 9.90 $ 9.63 $ 10.00
-------- ------- ------- --------
Income from Investment Operations:
Net investment income/(e)/................................ 0.08/(f)/ 0.08 0.09/(f)/ 0.01
Net realized and unrealized gain (loss) on investments and
foreign currency......................................... (0.12) 1.76 0.27 (0.37)
-------- ------- ------- --------
Total from Investment Operations.......................... (0.04) 1.84 0.36 (0.36)
-------- ------- ------- --------
Less Distributions Declared to Shareholders:
From net investment income................................ (0.08) (0.08) (0.08) (0.01)
From net realized gains................................... (0.33) (1.18) (0.01) --
-------- ------- ------- --------
Total Distributions Declared to Shareholders.............. (0.41) (1.26) (0.09) (0.01)
-------- ------- ------- --------
Net Asset Value, End of Period............................ $ 10.03 $ 10.48 $ 9.90 $ 9.63
======== ======= ======= ========
Total return/(h)/......................................... (0.43)%/(j)/ 21.69%/(j)/ 3.64%/(j)/ (3.62)%/(i)(j)/
======== ======= ======= ========
Ratios to Average Net Assets/Supplemental Data:
Expenses/(k)/............................................. 0.75% 0.78% 0.80% 1.27%/(l)/
Net investment income/(k)/................................ 0.74% 0.83% 0.80% 0.19%/(l)/
Waiver/reimbursement...................................... 0.21% 0.20% 0.20% 0.20%/(l)/
Portfolio turnover rate................................... 81% 81% 79% 30 %/(i)/
Net assets, end of period (000's)......................... $102,909 $93,558 $71,063 $63,061
- -------------------
(a) On October 13, 2003, the Liberty Strategic Equity Fund was renamed Columbia
Strategic Equity Fund. On October 27, 2003, the Fund was again renamed
Columbia Dividend Income Fund.
(b) The Fund has changed its fiscal year end from October 31 to September 30.
(c) On November 25, 2002, Galaxy Strategic Equity, Trust shares were
redesignated Liberty Strategic Equity Fund, Class Z shares.
(d) The Fund commenced operations on March 4, 1998.
(e) Net investment income per share before reimbursement of certain expenses
for the period ended September 30, 2003 and the years ended October 31,
2002, 2001, 2000, 1999 and 1998 was $0.15, $0.04, $0.06, $0.06, $0.06 and
$0.00, respectively.
(f) Per share data was calculated using average shares outstanding during the
period.
(g) 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.
(h) Total return at net asset value assuming all distributions reinvested.
(i) Not annualized.
(j) Had the Advisor 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) Portfolio turnover rate excludes securities delivered from processing
redemptions-in-kind.
See Notes to Financial Statements.
17
[GRAPHIC]
Notes to Financial Statements
NOTE 1. ORGANIZATION
Columbia Dividend Income Fund (the "Fund") is a series of the Columbia Funds
Trust XI (the "Trust") a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended, as an open-end management
investment company. The Fund is the successor to a separate series of The
Galaxy Fund ("Galaxy"), a Massachusetts business trust organized on March 31,
1986. The series of Galaxy, to which the Fund succeeded, was reorganized as a
separate series of the Trust.
Effective October 13, 2003, the Liberty Strategic Equity Fund was renamed
Columbia Strategic Equity Fund. Also on this date, the Liberty-Stein Roe Funds
Investment Trust was renamed Columbia Funds Trust XI. Effective October 27,
2003, the Columbia Strategic Equity Fund was renamed Columbia Dividend Income
Fund.
Effective February 11, 2003, the Board of Trustees approved a change in the
fiscal year end of the Fund from October 31 to September 30.
For the period covered by this report, the Fund's investment goal was to seek
long-term growth of capital. On October 27, 2003, the Fund changed its
investment goal to seek current income and capital appreciation.
The Fund may issue an unlimited number of shares. The Fund currently offers
six classes of shares: Class A, Class B, Class C, Class G, Class T and Class Z
shares. Class A and Class T shares are sold with a front-end sales charge. A
1.00% contingent deferred sales charge ("CDSC") is assessed on Class A and
Class T 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, Class C and Class G 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 G shares will
convert to Class T shares in eight years after purchase. 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.
As of the end of business on November 22, 2002, the Galaxy Equity Income Fund,
previously a fund of Galaxy, merged into Liberty Strategic Equity Fund
(formerly known as Galaxy Strategic Equity Fund). The Liberty Strategic Equity
Fund received a tax-free transfer of assets from Galaxy Equity Income Fund as
follows:
SHARES NET ASSETS UNREALIZED
ISSUED RECEIVED DEPRECIATION/1/
------ -------- ---------------
20,955,088 $188,556,383 $(19,625,587)
NET ASSETS NET ASSETS OF
NET ASSETS OF GALAXY LIBERTY
OF LIBERTY EQUITY STRATEGIC
STRATEGIC INCOME FUND EQUITY FUND
EQUITY FUND IMMEDIATELY IMMEDIATELY
PRIOR TO PRIOR TO AFTER
COMBINATION COMBINATION COMBINATION
----------- ----------- -----------
$30,204,471 $188,556,383 $218,760,854
/1/ Unrealized depreciation is included in the Net Assets Received amount shown
above.
Class G, Class T and Class Z shares of the Liberty Strategic Equity Fund were
issued in exchange for Retail B, Retail A and Trust shares of Galaxy Equity
Income Fund, respectively. Class A, Class B and Class C shares commenced
operations on November 25, 2002.
The accompanying statement of operations, statement of changes in net assets
and financial highlights represent the historical operations of the Galaxy
Strategic Equity Fund for periods prior to November 22, 2002.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
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 income 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.
Portfolio Valuation: Investments in securities which are traded on a
recognized stock exchange are valued at the last sale price on the securities
exchange on which such securities are primarily traded or at the last sale
price on the national securities market. Securities traded on over-the-counter
markets are valued at the last bid price. Short-term obligations that mature in
60 days or less are valued at amortized cost, which approximates market value.
All other securities and other assets are appraised at their fair value as
determined in good faith under consistently applied procedures established by
and under the general supervision of the Board of Trustees. Investments in
other investment companies are valued at net asset value.
Security Transactions and Investment Income: Securities transactions are
accounted for on a trade date basis. Net realized gains or losses on sales of
securities are determined by the identified cost method. Interest income is
recorded on the accrual basis. Premium and discount are amortized and accreted,
respectively, on all debt securities. Dividend income less foreign taxes
withheld (if any) is recorded on the ex-dividend date. Certain dividends from
foreign securities will be recorded as soon as the Fund is informed of the
dividend, if such information is obtained subsequent to the ex-dividend date.
Investment income and realized and unrealized gains and losses are allocated to
the Fund based upon its relative net assets. Awards from litigation are
recorded as a reduction of cost if the Fund still holds the affected securities
on the payment date. If the Fund no longer holds the effected securities, the
proceeds are recorded as realized gains.
Forward Foreign Currency Exchange Contracts: Forward foreign currency exchange
contracts are valued at the daily exchange rate of the underlying currency.
Purchases and sales of forward foreign currency exchange contracts having the
same settlement date and broker are offset and presented on a net basis in the
Statement of Assets and Liabilities. Gains or losses on the purchase or sale of
forward foreign currency exchange contracts having the
18
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
same settlement date and broker are recognized on the date of offset.
Otherwise, gains or losses are recognized on the settlement date.
Foreign Currency Translation: Investment valuations and other assets and
liabilities initially expressed in foreign currencies are converted each
business day into U.S. dollars based upon current exchange rates.
Purchases and sales of foreign investments and income and expenses are
converted into U.S. dollars based upon exchange rates prevailing on the
respective dates of such transactions. That portion of unrealized gains or
losses on investments due to fluctuations in foreign currency exchange rates is
not separately disclosed.
Dividends and Distributions to Shareholders: Dividends from net investment
income are declared and paid quarterly for the Fund. Net realized capital gains
for the Fund, if any, are distributed at least annually.
Federal Income Taxes: The Fund intends to comply with the requirements of the
Internal Revenue Code applicable to "regulated investment companies" by
distributing substantially all taxable net investment income and net realized
gains to its shareholders in a manner that results in no tax to the Fund.
Therefore, no federal income or excise tax provision is required.
Repurchase Agreements: The Fund may engage in repurchase agreement
transactions with institutions that the Trust's investment advisor has
determined are creditworthy. Each repurchase agreement transaction is recorded
at cost plus accrued interest. The Fund requires that the securities
collateralizing a repurchase agreement transaction be transferred to the
Trust's custodian or a sub-custodian in a manner that is intended to enable the
Fund to obtain those securities in the event of a counterparty default. The
value of the collateral securities is monitored daily to ensure that the value
of the collateral, including accrued interest, equals or exceeds the repurchase
price. Repurchase agreement transactions involve certain risks in the event of
default or insolvency of the counterparty, including 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.
Determination of Class Net Asset Values: All income, expenses (other than
class specific expenses), 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.
Organization Costs: The Fund has borne all costs in connection with its
organization, including the fees and expenses of registering and qualifying its
initial shares for distribution under federal and state securities laws. All
such costs are amortized using the straight-line method over a period of five
years, beginning with the commencement of the Fund's operation. As of September
30, 2003, all organization costs have been fully amortized.
NOTE 3. 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, REIT return of
capital adjustments, capital loss carryforwards and non-deductible
expenses. Reclassifications are made to the Funds' capital accounts to reflect
income and gains available for distribution (or available capital loss
carryforwards) under income tax regulations.
For the period ended September 30, 2003, permanent items identified and
reclassified among the components of net assets are as follows:
UNDISTRIBUTED ACCUMULATED
NET INVESTMENT NET REALIZED PAID-IN
INCOME LOSS CAPITAL
------ ---- -------
$49,535 $(20,919,179) $20,869,644
Net investment income, net realized gains (losses) and net assets were not
affected by this reclassification. Included in the reclassification are
book-to-tax timing differences totaling $20,871,068 which were acquired as part
of the merger. These timing differences are mostly comprised of capital loss
carry-forwards, wash sales, REIT return of capital adjustments and
non-deductable expenses.
The tax character of distributions paid during the period ended September 30,
2003 and the years ended October 31, 2002 and 2001 was as follows:
LONG-TERM
ORDINARY INCOME CAPITAL GAINS
- --------------- -------------
September 2003 $2,526,676 $ --
October 2002.. 1,124,772 3,641,153
October 2001.. 804,393 3,267,229
As of September 30, 2003, the components of distributable earnings on a tax
basis were as follows:
UNDISTRIBUTED UNDISTRIBUTED
ORDINARY LONG-TERM UNREALIZED
INCOME CAPITAL GAINS DEPRECIATION*
------ ------------- -------------
$82,574 $-- $10,155,696
* The difference between book-basis and tax-basis unrealized depreciation, if
applicable, is attributable primarily to the tax deferral of losses on wash
sales and REIT return of capital adjustments.
The following capital loss carryforwards, determined as of September 30, 2003,
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 EXPIRATION
------------------ -
2009....... $20,104,156
2010....... 2,470,255
2011....... 9,095,627
-----------
$31,670,038
-----------
Of the capital loss carryforwards attributable to the Fund, $20,424,884
($20,104,156 expiring 9/30/09 and $320,728 expiring 9/30/10) was obtained upon
the Fund's merger with Galaxy Equity Income Fund (See Note 1).
Utilization of the Fund's capital loss carryforwards above could be subject to
limitations imposed by the Internal Revenue Code.
19
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 4. INVESTMENT ADVISORY, ADMINISTRATION, SHAREHOLDER SERVICES, DISTRIBUTION
AND OTHER FEES
On April 1, 2003, Fleet Investment Advisors Inc., the investment advisor to
the Fund, and Stein Roe & Farnham Incorporated, the administrator 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 those companies 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.
Columbia is the investment advisor of the Fund and receives a monthly fee
equal to 0.75% annually of the average daily net assets of the Fund.
Columbia intends to waive advisory fees payable to it by the Fund so that the
advisory fees payable by the Fund would be as follows:
AVERAGE DAILY NET ASSETS ANNUAL FEE RATIO
------------------------ ----------------
First $500 million 0.75%
Next $500 million 0.70%
Next $500 million 0.65%
Next $500 million 0.60%
Over $2 billion 0.55%
At a 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 RATIO
------------------------ ----------------
First $500 million 0.75%
Next $500 million 0.70%
Next $500 million 0.65%
Next $500 million 0.60%
Over $2 billion 0.55%
Effective November 1, 2003, Columbia no longer intends to waive its advisory
fees payable to it by the Fund.
Columbia provides, pursuant to an Administrative Agreement with the Fund,
certain administrative services for a monthly fee equal to 0.067% annually of
the Fund's average daily net assets. Prior to November 26, 2002, the
administration agreement was computed daily and paid monthly at the annual rate
of 0.09% of the first $2.5 billion of the combined average daily net assets of
the Trust and the other funds offered by Galaxy, 0.085% of the next $2.5
billion of combined average daily net assets, 0.075% of the next $7 billion of
combined average daily net assets, 0.065% of the next $3 billion of combined
average daily net assets, 0.06% of the next $3 billion of combined average
daily net assets, 0.0575% of the next $3 billion of combined average daily net
assets, 0.0525% of the next $9 billion of combined average daily net assets and
0.05% of combined average daily net assets in excess of $30 billion. Effective
July 22, 2002 through November 22, 2002, PFPC ("PFPC"), a member of PNC
Financial Services Group, served as sub-administrator to the Funds pursuant to
an agreement with Columbia.
Columbia is also 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 fee based on the average daily net assets of the Fund
as follows:
AVERAGE DAILY NET ASSETS FEE
------------------------ ---
Under $50 million $ 25,000
Of $50 million but less than $200 million 35,000
Of $200 million but less than $500 million 50,000
Of $500 million but less than $1 billion 85,000
In excess of $1 billion 125,000
An additional annual flat fee of $10,000 is charged to the Fund due to its
multi-class structure. The Fund also pays out-of-pocket costs for pricing
services.
Prior to July 22, 2002, PFPC provided pricing and bookkeeping services to the
Fund at the same annual rates described above. PFPC continued to provide
certain of these pricing and bookkeeping services, through November 22, 2002,
pursuant to an agreement with Columbia.
Liberty Funds Services, Inc. (the "Transfer Agent"), an affiliate of Columbia,
provides shareholder services for a monthly fee based on a per account charge
or minimum of $5,000 annually. 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.
The Transfer Agent has agreed to reimburse class specific transfer agent fees
as follows:
FEES WAIVED
---------------
CLASS T CLASS Z
------- -------
$8,220 $13,474
Prior to July 22, 2002, PFPC was the transfer agent to the Fund at the same
rates described above.
At a 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.
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.
20
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
For the period ended September 30, 2003, the Fund has been advised that the
Distributor has retained fees as follows:
FRONT-END
SALES CHARGE CDSC
--------------- ---------------------------------------
CLASS A CLASS T CLASS A CLASS B CLASS C CLASS G CLASS T
------- ------- ------- ------- ------- ------- -------
$1,137 $839 $0 $2,420 $1,563 $18,854 $0
The Fund has adopted a 12b-1 plan (the "Plan"), which requires the payment
of a monthly service and distribution fee to the Distributor at an annual fee
rate as follows:
DISTRIBUTION FEE SERVICE FEE
--------------------------------- ---------------------------------
CLASS A* CLASS B CLASS C CLASS G** CLASS A* CLASS B CLASS C CLASS G**
-------- ------- ------- --------- -------- ------- ------- ---------
0.10%.. 0.75% 0.75% 0.65% 0.25% 0.25% 0.25% 0.50%
* The Fund's Board of Trustees limits payments under the Plan for Class A
shares to 0.25% annually of the Class A average daily net assets.
** The Fund's Board of Trustees limits payments under the Plan for Class G
shares to 0.95% annually of the Class G average daily net assets.
Prior to July 22, 2002, PFPC Distributors, Inc., a wholly-owned subsidiary of
PNC Financial Services Group, acted as the exclusive distributor to the Class Z
shares (formerly Trust shares).
The Fund has adopted a 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 service 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.
The Fund pays no compensation to its officers, all of whom are employees of
Columbia or 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 $198 of custody
fees were reduced by balance credits for the period ended September 30, 2003.
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.
Expenses for the year ended October 31, 2002 include legal fees paid directly
to Drinker Biddle and Reath LLP. A partner of that firm is Secretary to the
Trust.
NOTE 5. SHARES OF BENEFICIAL INTEREST
The Trust's Declaration of Funds authorizes the Trustees to issue an unlimited
number of shares of beneficial interest, each with a par value of $0.001.
NOTE 6. PURCHASES AND SALES OF SECURITIES
The cost of purchases and proceeds from sales of securities, excluding
short-term investments, for the period ended September 30, 2003 was $57,346,938
and $96,522,284, respectively.
Unrealized appreciation (depreciation) at September 30, 2003, based on cost of
investments for federal income tax purposes, was:
Gross unrealized appreciation $ 15,925,284
Gross unrealized depreciation (26,080,980)
------------
Net unrealized depreciation. $(10,155,696)
------------
The Galaxy Strategic Equity Fund had a redemption-in-kind on January 11, 2001
which resulted in a redemption out of the Fund of $93,827,039. The redemption
is comprised of securities and cash in the amounts of $83,530,666 and
$10,296,373, respectively.
NOTE 7. FOREIGN SECURITIES
The Fund may purchase securities of foreign issuers. Investing in securities
of foreign issuers involves special risks not typically associated with
investing in securities of U.S. issuers. The risks include possible revaluation
of currencies, less complete financial information about companies and possible
future adverse political and economic developments. Moreover, securities of
many foreign issuers and their markets may be less liquid and their prices more
volatile than those of securities of comparable U.S. issuers.
NOTE 8. LINE OF CREDIT
Prior to the Fund's merger into the Trust, the Fund and other Galaxy funds
participated in a $150,000,000 credit facility, which was used for temporary or
emergency purposes to facilitate portfolio liquidity. Interest was charged to
the Fund based on its borrowings. In addition, the Fund paid commitment fees on
its pro-rata portion of the line of credit. The commitment fees are included in
"Other expenses" on the Statements of Operations. Following the merger into the
Trust, the Fund participated in a $200,000,000 credit facility with other
Columbia Funds. On April 26, 2003, the Fund entered into a new $350,000,000
credit facility with other Columbia Funds, pursuant to similar terms and
conditions. For the period ended September 30, 2003, the Fund did not borrow
under these agreements.
21
-----------------------------------------------------------------------------
[GRAPHIC]
Report of Ernst & Young LLP, Independent Auditors
To the Shareholders and Board of Trustees of Columbia Funds Trust XI:
We have audited the accompanying statement of assets and liabilities,
including the portfolio of investments, of Columbia Dividend Income Fund
(formerly, Columbia Strategic Equity Fund, prior to that, Liberty Strategic
Equity Fund, and prior to that, Galaxy Strategic Equity Fund) (the "Fund") (a
series of Columbia Funds Trust XI (formerly, Liberty-Stein Roe Funds Income
Trust and prior to that, The Galaxy Fund)) as of September 30, 2003, and the
related statement of operations for the period from November 1, 2002 to
September 30, 2003 and for the year ended October 31, 2002, the statement of
changes in net assets for the period from November 1, 2002 to September 30,
2003 and for each of the two years in the period ended October 31, 2002, and
the financial highlights for each of the periods indicated therein. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits. The
financial highlights for the year ended October 31, 1998 were audited by other
auditors, whose report dated December 23, 1998, expressed an unqualified
opinion on these financial highlights.
We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
and financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of September 30, 2003, by correspondence
with the custodian. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
the Columbia Dividend Income Fund, a series of Columbia Funds Trust XI, at
September 30, 2003, the results of its operations, the changes in its net
assets, and the financial highlights for each of the periods indicated above,
in conformity with accounting principles generally accepted in the United
States.
/s/ Ernst & Young LLP
Boston, Massachusetts
November 14, 2003
22
UNAUDITED INFORMATION
FEDERAL INCOME TAX INFORMATION:
100% of the ordinary income distributed by the Fund, for the period ended
September 30, 2003, qualifies for the corporate dividend received deduction.
For non-corporate shareholders 100%, or the maximum amount allowable under the
Jobs and Growth Tax Relief Reconciliation Act of 2003, of income earned by the
Fund for the period January 1, 2003 to September 30, 2003 may represent
qualified dividend income. Final information will be provided in your 2003
1099-DivForm.
RESULTS OF SPECIAL MEETINGS OF SHAREHOLDERS:
On October 21, 2003, a special meeting of shareholders of the Fund was held to
authorize the Fund's Board of Trustees to change the Fund's investment goal
without shareholder approval. On August 13, 2003, the record date for the
Meeting, the Fund had outstanding $183,616,216.66. The votes cast at the
Meeting were as follows:
PROPOSAL OF % OF NAV TO TOTAL % OF NAV TO
NEW INVESTMENT GOAL: NAV OUTSTANDING NAV TOTAL NAV VOTED
-------------------- --- --------------- ---------------
For: $97,650,658.77 53.18% 92.50%
Against: $ 5,693,134.50 3.10% 5.39%
Abstain: $ 2,224,779.45 1.21% 2.11
23
[GRAPHIC]
Trustees
Effective October 8, 2003, Patrick J. Simpson and Richard L. Woolworth were
appointed to the Board of Trustees of the Funds. Messrs. Simpson and Woolworth
had been directors/trustees of 15 Columbia Funds and 20 funds in the CMG Fund
Trust. Also effective October 8, 2003, the incumbent trustees of the Funds were
elected as directors of the 15 Columbia Funds and as trustees of the 20 funds
in the CMG Fund Trust. The new combined Board of Trustees of the Funds 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 Other
with Appointed Principal Occupation(s) Complex Overseen Directorships
Name, Address and Age Funds to Office/1/ During Past Five Years by Trustee Held
- -------------------------------------------------------------------------------------------------------------------------
Disinterested Trustees
Douglas A. Hacker (Age 48) Trustee 1996 Executive Vice President 124 None
P.O. Box 66100 - Strategy of United
Chicago, IL 60666 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).
Janet Langford Kelly (Age 45) Trustee 1996 Chief Administrative 124 None
3100 West Beaver Road Officer and Senior Vice
Troy, MI 48084-3163 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).
Richard W. Lowry (Age 67) Trustee 1995 Private Investor since 126/3/ None
10701 Charleston Drive August, 1987 (formerly
Vero Beach, FL 32963 Chairman and Chief
Executive Officer, U.S.
Plywood Corporation
(building products
manufacturer)).
Charles R. Nelson (Age 61) Trustee 1981 Professor of Economics, 124 None
Department of Economics University of
University of Washington Washington, since
Seattle, WA 98195 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.
John J. Neuhauser (Age 60) Trustee 1985 Academic Vice President 127/3,4/ Saucony, Inc. (athletic
84 College Road and Dean of Faculties footwear); SkillSoft Corp.
Chestnut Hill, MA 02467-3838 since August, 1999, (E-Learning)
Boston College (formerly
Dean, Boston College
School of Management
from September, 1977 to
September, 1999).
Patrick J. Simpson (Age 58) Trustee 2000 Partner, Perkins Coie 124 None
1211 S.W. 5th Avenue L.L.P. (formerly
Suite 1500 Partner, Stoel Rives
Portland, OR 97204 Boley Jones & Grey).
Thomas E. Stitzel (Age 67) Trustee 1998 Business Consultant 124 None
2208 Tawny Woods Place since 1999 (formerly
Boise, ID 83706 Professor of Finance
from 1975 to 1999 and
Dean from 1977 to 1991,
College of Business,
Boise State University);
Chartered Financial
Analyst.
24
TRUSTEES (CONTINUED)
Number of
Year First Portfolios in
Position Elected or Columbia Funds Other
with Appointed Principal Occupation(s) Complex Overseen Directorships
Name, Address and Age Funds to Office/1/ During Past Five Years by Trustee Held
- -------------------------------------------------------------------------------------------------------------------------------
Disinterested Trustees (continued)
Thomas C. Theobald (Age 66) Trustee 1996 Managing Director, 124 Anixter International (network
27 West Monroe Street, William Blair Capital support equipment distributor),
Suite 3500 Partners (private equity Jones Lang LaSalle (real estate
Chicago, IL 60606 investing) since management services) and
September, 1994 MONY Group (life insurance).
(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 125/4/ Chairman of the Board of
359 Stickney Hill Road educational systems Directors, Enesco Group, Inc.
Hopkinton, NH 03229 needs (formerly General (designer, importer and
Manager, Global distributor of giftware and
Education Industry from collectibles).
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 124 NW Natural, a natural gas
100 S.W. Market Street Executive Officer, The service provider
#1500 Regence Group
Portland, OR 97207 (healthcare maintenance
organization) (formerly
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 126/3/ Lee Enterprises (print media),
399 Park Avenue Avenue Equity Partners WR Hambrecht + Co. (financial
Suite 3204 (private equity) since service provider) and First
New York, NY 10022 February, 1999 (formerly Health (healthcare).
Founding 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 125/5/ None
One Financial Center Chairman and Chief Operating
Boston, MA 02111 of the Officer of Columbia
Board Management Group, Inc.
and (Columbia Management)
President 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 Fund Trust (the
"CMG Funds Board"); simultaneous with that election, Patrick J. Simpson and
Richard L. Woolworth, who had been directors on the Columbia Board and
trustees on the CMG Funds Board, were appointed to serve as trustees of the
Liberty Board. The date shown is the earliest date on which a
trustee/director was elected or appointed to the board of a Fund in the
Columbia Funds Complex.
/2/ Mr. Mayer is an "interested person" (as defined in the Investment Company
Act of 1940 (1940 Act)) by reason of his affiliation with WR Hambrecht +
Co. 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.
25
TRUSTEES (CONTINUED)
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 Accounting 2001 Controller of the Columbia Funds and of the
One Financial Center Officer and Liberty All-Star Funds since May, 2002; Chief
Boston, MA 02111 Controller Accounting Officer of the Columbia Funds and
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 Dividend Income Fund is:
Columbia Funds Services, Inc.
P.O. Box 8081
Boston, MA 02266-8081
ON OCTOBER 13, 2003, THE TRANSFER AGENT'S NAME WAS CHANGED TO COLUMBIA FUNDS
SERVICES, INC.
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 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 fund and with the most
recent copy of the Columbia Funds Performance Update.
Annual Report:
Columbia Dividend Income Fund
26
Columbia Dividend Income Fund Annual Report, September 30, 2003
[LOGO] [LOGO](R) ColumbiaFunds
A Member of Columbia Management Group
(c)2003 Columbia Funds Distributor, Inc.
One Financial Center, Boston, MA 02111-2621
800.345.6611 www.columbiafunds.com
G-02/909P-1003 (11/03) 03/3276
PRSRT STD
U.S. Postage
PAID
Holliston, MA Permit NO. 20
[GRAPHIC]
Columbia
Thematic
Equity Funds
Annual Report
September 30, 2003
We are Columbia Funds!
INSIDE -- Management's discussion of the changes effective as of October 13,
2003.
President's Message
[PHOTO]
Joseph R. Palombo
Dear Shareholder:
As you know, the funds you invest in have long been associated with a larger
investment management organization. In the 1990s, they were part of Liberty
Financial, whose affiliated asset management companies included Colonial, Stein
Roe and Newport. In 2001, these companies 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 brought together under the
CMG umbrella were consolidated and renamed Columbia Management Advisors, Inc.
On October 13, 2003, we took the natural next step in this process by changing
the name of our funds from Liberty to Columbia. For example, Liberty Global
Thematic Equity Fund was renamed Columbia Global Thematic Equity Fund and
Liberty European Thematic Equity Fund was renamed to Columbia European Thematic
Equity Fund. We have also modified certain fund names that existed under both
the Liberty and Columbia brands. 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
shareholders to do business with us. All funds are now listed under "Columbia"
in the mutual fund listings section of your newspaper (depending on the
newspaper's listing requirements). All service inquiries are now handled by
Columbia Funds Services, Inc., the new name of our shareholder service
organization.
What has not changed is our commitment to the funds' shareholders. We remain
dedicated 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 Columbia Funds at 800-345-6611.
In the report that follows, the lead manager of the funds' investment team
talks in depth about investment strategies and other factors that affected your
funds' 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. Palombo
Joseph R. Palombo
President
[LOGO] Not FDIC May Lose Value
Insured No Bank Guarantee
Performance Information -- Columbia Global Thematic Equity Fund
Value of a $10,000 Investment 1/2/01--9/30/03
Performance of a $10,000 investment
1/2/01--9/30/03 ($)
without sales with sales
charge charge
--------------------------------
Class Z 6,894 n/a
[CHART]
Class Z Shares MSCI World Index
-------------- ----------------
$10,000 $10,000
01/02/2001 - 01/31/2001 10,424 10,193
02/01/2001 - 02/28/2001 9,556 9,331
03/01/2001 - 03/31/2001 8,737 8,716
04/01/2001 - 04/30/2001 9,467 9,358
05/01/2001 - 05/31/2001 9,338 9,236
06/01/2001 - 06/30/2001 9,042 8,946
07/01/2001 - 07/31/2001 8,766 8,826
08/01/2001 - 08/31/2001 8,302 8,401
09/01/2001 - 09/30/2001 7,493 7,660
10/01/2001 - 10/31/2001 7,680 7,806
11/01/2001 - 11/30/2001 8,174 8,267
12/01/2001 - 12/31/2001 8,351 8,318
01/01/2002 - 01/31/2002 7,887 9,854
02/01/2002 - 02/28/2002 7,738 7,994
03/01/2002 - 03/31/2002 8,064 8,363
04/01/2002 - 04/30/2002 7,634 8,064
05/01/2002 - 05/31/2002 7,564 8,077
06/01/2002 - 06/30/2002 7,169 7,586
07/01/2002 - 07/31/2002 6,547 6,946
08/01/2002 - 08/31/2002 6,478 6,958
09/01/2002 - 09/30/2002 5,757 6,192
10/01/2002 - 10/31/2002 6,290 6,648
11/01/2002 - 11/30/2002 6,566 7,006
12/01/2002 - 12/31/2002 6,211 6,665
01/01/2003 - 01/31/2003 5,955 6,462
02/01/2003 - 02/28/2003 5,787 6,349
03/01/2003 - 03/31/2003 5,728 6,328
04/01/2003 - 04/30/2003 6,162 6,889
05/01/2003 - 05/31/2003 6,439 7,280
06/01/2003 - 06/30/2003 6,617 7,406
07/01/2003 - 07/31/2003 6,844 7,555
08/01/2003 - 08/31/2003 6,973 7,718
09/01/2003 - 09/30/2003 6,894 7,888
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 above illustration assumes a $10,000 investment made on January 2,
2001 (December 31, 2000 for the index), and reinvestment of income and capital
gains distributions. The Morgan Stanley Capital International World (MSCI
World) Index is an unmanaged index that tracks the performance of Global
stocks. Unlike the fund, an index is not an investment, does not incur fees or
expenses and is not professionally managed. It is not possible to invest
directly in an index. Securities in the fund may not match those in an index.
Foreign investing involves market, political, currency and accounting risks not
associated with domestic securities.
Average annual total return as of 9/30/03 (%)
11-month
(cumulative) 1-year Life
---------------------------------------------------
Columbia Global Thematic
Equity Fund 9.58 19.73 -12.66
---------------------------------------------------
MSCI World Index* 16.79 25.40 -8.81
---------------------------------------------------
* MSCI World Index performance is from 12/31/00
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. 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 graph and table do not reflect
the deduction of taxes a shareholder would pay on fund distributions or
redemption of fund shares. Class Z shares may be purchased by, among others:
any shareholder (and family members) of a fund distributed by Columbia Funds
Distributor, Inc. (CFDI) who (i) hold class Z shares, (ii) who holds class A
shares that were obtained by exchanging with class Z shares, or (iii) who
purchased no-load shares of funds merged with funds distributed by CFDI;
clients of fee-based brokers-dealers or registered investment advisors that
recommend the purchase of fund shares; any trustee or director (and family
members of a shareholder or any person listed on an account registration for
the account of any shareholder) of any fund distributed by CFDI; insurance
companies, trust companies, banks, endowments, investment companies and
foundations; and retirement plans with assets of at least $5 million.
Investment minimums vary. For further information, please consult the fund
prospectus.
1
Portfolio Managers' Report -- Columbia Global Thematic Equity Fund
Top 10 Holdings as of 9/30/03 (%)
Citigroup 5.4
Pfizer 4.4
General Electric 4.1
Merrill Lynch 3.6
Exxon Mobil 3.6
Microsoft 3.3
Johnson & Johnson 3.0
Nestle 2.9
Nomura Holdings 2.9
British Sky Broadcasting 2.7
Holdings are calculated as a percentage of net assets. Because the fund is
actively managed, there can be no guarantee the fund will continue to hold
these securities in the future.
Top 5 Countries as of 9/30/03 (%)
United States 55.3
Japan 9.0
Switzerland 7.8
United Kingdom 6.2
Canada 2.9
Country breakdown is calculated as a percentage of total investments. Since
the fund is actively managed, there is no guarantee the fund will continue to
invest in these countries in the future
The Board of Trustees for Columbia Global Thematic Equity Fund has approved the
change of the fund's fiscal year end from October 31 to September 30. As a
result, this report covers the 11-month period since the last annual report.
The next report you receive will cover the six-month period from October 1,
2003, through March 31, 2004.
For the 11-month period ended September 30, 2003, class Z shares of Columbia
Global Thematic Equity Fund returned 9.58%. The fund did not perform as well as
its benchmark, the MSCI World Index, which returned 16.79%. The fund's move
into growth stocks early in the year caused it to lose ground before the market
began its rally in March. Relative performance, however, improved in the second
half of the period.
Turnaround in the market
The period was characterized by two very different sets of market conditions.
From November until early March, global uncertainty prevailed and equity
markets were stagnant in the face of little economic growth, disappointing
corporate earnings and falling consumer confidence. However, once military
action began in Iraq, stocks snapped out of the doldrums and began an extended
rally that lasted through the end of the period.
Poor returns early from Strategic Information
In January we added to holdings in information technology and industrials
within the Strategic Information theme in anticipation of a market turnaround.
Our additions included Samsung Electronics, Taiwan Semiconductor Manufacturing
and Honeywell International (2.5%, 1.6% and 2.2% of net assets,
respectively)./1/ While these stocks ultimately fared well when the market
began to rebound in March, they were still losing value when we moved into them
early in the period. Our timing had a negative effect on the fund's overall
performance.
Good performance from Fulfill Your Dreams, The Home
Increasing consumer confidence in the second half of the period helped holdings
in the Fulfill Your Dreams theme. Motorcycle manufacturer Harley-Davidson (1.0%
of net assets) has been a consistent performer over several years and remains
strong. Cruise line Carnival (1.8% of net assets) undertook
- ------------
/1/ Holdings are disclosed as of September 30, 2003 and are subject to change.
2
changes that have solidified its financial position and freed up cash flow for
dividends. In The Home theme, improving economic conditions helped Kingfisher
(0.7% of net assets), the leading home improvement company in Europe. Under new
management, Kingfisher has done well in the United Kingdom and has seen its
margins increase in do-it-yourself and home furnishing products. Toward the end
of the period, we added Furniture Brands International (0.7% of net assets), a
US furniture manufacturer. While low interest rates have propelled a very
strong new housing market in the US, sales of furniture have been relatively
weak. As the economy recovers, however, we expect to see a significant increase
in spending on home furnishings.
Looking ahead
We believe the global economy is in the early stages of recovery. Although
economic data has been mixed, we note a positive trend overall, even with
weakness in the US dollar and US employment figures. The European economy has
been somewhat fragile in this environment. We think, however, that the region's
businesses should be able to adjust as long as the dollar declines gradually.
The Japanese economy has begun to pick up, despite its structural troubles, and
has held its place as the second largest economy in the world. Under an
improving global scenario, we remain committed to high-quality growth
companies, particularly in areas related to travel, consumer discretionary
spending and technology.
/s/ Leon Pedersen
The fund is managed by a 7-member portfolio team at Nordea Investment
Management North America, Inc., with Leon Pedersen serving as lead manager. No
single individual at Nordea is responsible for making investment decisions for
the fund. Nordea is the subadvisor to the fund. The fund's advisor is Columbia
Management Advisors, Inc.
There are also specific risks involved when investing in foreign stocks, such
as currency exchange rate fluctuations, economic change, instability of
emerging countries and political developments.
Top 5 sectors as of 9/30/03 (%)
[CHART]
Financials 20.3
Information technology 17.1
Consumer discretionary 15.0
Industrials 14.2
Health care 13.7
Sector breakdowns are calculated as a percentage of net assets. Because the
fund is actively managed, there can be no guarantee the fund will continue to
maintain the same sector breakdown in the future.
3
Performance Information--Columbia European Thematic Equity Fund
Value of an $10,000 investment
1/2/01--9/30/03
Performance of a $10,000 investment
1/2/01--9/30/03 ($)
without sales with sales
charge charge
--------------------------------
Class Z 6,922 n/a
[CHART]
Class Z Shares MSCI EUROPE INDEX
-------------- -----------------
$10,000 $10,000
01/02/2001 - 01/31/2001 10,157 10,005
02/01/2001 - 02/28/2001 9,234 9,127
03/01/2001 - 03/31/2001 8,429 8,446
04/01/2001 - 04/30/2001 8,969 9,046
05/01/2001 - 05/31/2001 8,477 8,605
06/01/2001 - 06/30/2001 8,133 8,279
07/01/2001 - 07/31/2001 8,054 8,300
08/01/2001 - 08/31/2001 7,907 8,084
09/01/2001 - 09/30/2001 7,150 7,278
10/01/2001 - 10/31/2001 7,327 7,509
11/01/2001 - 11/30/2001 7,563 7,810
12/01/2001 - 12/31/2001 7,838 8,010
01/01/2002 - 01/31/2002 7,347 7,591
02/01/2002 - 02/28/2002 7,347 7,590
03/01/2002 - 03/31/2002 7,651 8,001
04/01/2002 - 04/30/2002 7,561 7,940
05/01/2002 - 05/31/2002 7,471 7,916
06/01/2002 - 06/30/2002 7,281 7,641
07/01/2002 - 07/31/2002 6,373 6,790
08/01/2002 - 08/31/2002 6,343 6,789
09/01/2002 - 09/30/2002 5,364 5,896
10/01/2002 - 10/31/2002 5,893 6,466
11/01/2002 - 11/30/2002 6,173 6,783
12/01/2002 - 12/31/2002 5,934 6,537
01/01/2003 - 01/31/2003 5,564 6,228
02/01/2003 - 02/28/2003 5,334 6,025
03/01/2003 - 03/31/2003 5,544 5,935
04/01/2003 - 04/30/2003 6,263 6,736
05/01/2003 - 05/31/2003 6,733 7,173
06/01/2003 - 06/30/2003 6,783 7,242
07/01/2003 - 07/31/2003 6,863 7,389
08/01/2003 - 08/31/2003 6,823 7,375
09/01/2003 - 09/30/2003 6,922 7,559
Mutual fund performance changes over time. Please visit www.columbiafunds.com
for monthly 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 above illustration assumes a $10,000 investment made on January 2,
2001 (December 31, 2000 for the index), and reinvestment of income and capital
gains distributions. The Morgan Stanley Capital International Europe (MSCI
Europe) Index is an unmanaged index that tracks the Performance of global
stocks. Unlike the fund, an index is not an investment, does not incur fees or
expenses and is not professionally managed. It is not possible to invest
directly in an index. Securities in the fund may not match those in an index.
Foreign investing involves market, political, currency and accounting risks not
associated with domestic securities.
Average annual total return, as of 9/30/03 (%)
11-month
(cumulative) 1-year Life
-----------------------------------------------------
Columbia European Thematic
Equity Fund 17.46 29.05 -12.53
-----------------------------------------------------
MSCI Europe Index* 16.37 27.62 -9.83
-----------------------------------------------------
* MSCI Europe Index performance is from 12/31/00
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. 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 graph and table do not reflect
the deduction of taxes a shareholder would pay on fund distributions or
redemption of fund shares. Class Z shares may be purchased by, among others:
any shareholder (and family members) of a fund distributed by Columbia Funds
Distributor, Inc. (CFDI) who (i) hold class Z shares, (ii) who holds class A
shares that were obtained by exchanging with class Z shares, or (iii) who
purchased no-load shares of funds merged with funds distributed by CFDI;
clients of fee-based brokers-dealers or registered investment advisors that
recommend the purchase of fund shares; any trustee or director (and family
members of a shareholder or any person listed on an account registration for
the account of any shareholder) of any fund distributed by CFDI; insurance
companies, trust companies, banks, endowments, investment companies and
foundations; and retirement plans with assets of at least $5 million.
Investment minimums vary. For further information, please see the fund
prospectus.
4
Portfolio Managers' Report -- Columbia European Thematic Equity Fund
Top 10 Holdings as of 9/30/03 (%)
Nestle 4.9
Vodafone Group 4.0
UBS 3.8
Novartis 3.7
Total B 3.4
Telecom Italia 3.2
Nokia 2.9
Shell Transport & Trading 2.8
Aventis 2.8
British Sky Broadcasting Group 2.5
Holdings are calculated as a percentage of net assets. Because the fund is
actively managed, there can be no guarantee the fund will continue to hold
these securities in the future.
Top 5 Countries as of 9/30/03 (%)
United Kingdom 27.3
Switzerland 17.0
France 11.8
Italy 10.6
Netherlands 8.5
Country breakdown is calculated as a percentage of total investments. Since
the fund is actively managed, there is no guarantee the fund will continue
to invest in these countries in the future.
Bought
- --------------------------------------------------------------------------------
Allied Irish Banks (1.3% of net assets). The leading banking group in Ireland,
the bank fits into thematic context as it benefits from the strong structural
economic growth and the attractive demographics in Ireland.
Sold
- --------------------------------------------------------------------------------
We sold Cadbury Schweppes which has increased operational risk, as the company
made a new acquisition and is transitioning to a new CEO and rolling out a new
restructuring program.
The Board of Trustees for Columbia European Thematic Equity Fund has approved
the change of the fund's fiscal year end from October 31 to September 30. As a
result, this report covers the 11-month period since the last annual report.
The next report you receive will cover the six-month period from October 1,
2003 through March 31, 2004.
For the 11-month period ended September 30, 2003, class Z shares of Columbia
European Thematic Equity Fund returned 17.46%, outperforming the MSCI Europe
Index, which returned 16.37%. The fund's orientation to growth stocks helped
performance when growth came back into favor during the second half of the
period.
Turnaround in the market
The period was characterized by two very different sets of market conditions.
From November until early March, global uncertainty prevailed and equity
markets were stagnant in the face of little economic growth, disappointing
earnings and falling consumer confidence. Once military action began in Iraq,
however, stocks snapped out of the doldrums and began an extended rally that
lasted until the final weeks of the period.
Longer Life and Global Data Traffic helped in first half
In the first part of the period, the fund posted gains from the Longer
Life--Better Life theme, including strong returns from Fresenius and Novo
Nordisk (1.6% and 0.8% of net assets, respectively)./1/ Fresenius runs kidney
dialysis centers worldwide, and Novo Nordisk has maintained its leadership
position in the briskly growing insulin market. The Global Data Traffic theme
also contributed to performance, as mobile phone operator Vodafone Group and
Spanish telephone company Telefonica (4.0% and 2.3% of net assets) did
especially well.
Strong returns from Strategic Information and The Home
The rebound in stocks during the second half of the period benefited several
technology holdings within the Strategic Information theme, including German
software consulting company SAP and Dassault Systemes (0.9% and 1.5% of net
assets, respectively). Dassault is a leading French company specializing in
computer-aided design,
- ------------
/1/ Holdings are disclosed as of September 30, 2003 and are subject to change.
5
manufacturing and product lifecycle management software. The company is also
notable for its strategic relationship with IBM for marketing and sales.
Improving economic conditions also helped the fund's holdings in The Home
theme. For example, Kingfisher (2.0% of net assets), the leading home
improvement company in Europe, has done well under new management. In the
United Kingdom it has seen its margins increase in do-it-yourself and home
furnishing products. The company also has a strong market presence in France,
Italy, Poland, Taiwan and China.
Disappointing returns from security companies
The Outsourcing theme detracted from performance during the period. We owned
Chubb PLC, a leading British provider of electronic security systems, but sold
it when it became clear that US companies would be less likely to outsource
security responsibilities overseas. The world's largest security company
Securitas (1.1% of net assets) also performed poorly during the period.
Looking ahead
We believe the global economy is in the early stages of recovery. Although
economic data has been mixed, we note a positive trend overall, even with
weakness in the US dollar and US employment figures. The European economy has
been somewhat fragile in this environment. We think, however, that the region's
businesses should be able to adjust as long as the dollar declines gradually.
The Japanese economy has begun to pick up, despite its structural troubles, and
has held its place as the second largest economy in the world. Under an
improving global scenario, we remain committed to high-quality growth
companies, particularly in areas related to travel, consumer discretionary
spending and technology.
/s/ Leon Pedersen
The fund is managed by a 7-member portfolio team at Nordea Investment
Management North America, Inc., with Leon Pedersen serving as lead manager. No
single individual at Nordea is responsible for making investment decisions for
the fund. Nordea is the subadvisor to the fund. The fund's advisor is Columbia
Management Advisors, Inc.
There are also specific risks involved when investing in foreign stocks, such
as currency exchange rate fluctuations, economic change, instability of
emerging countries and political developments. A portfolio of stocks from a
limited geographic region, such as Europe, may be subject to additional risks
and volatility.
Top 5 sectors as of 9/30/03 (%)
[CHART]
Financials 22.7
Consumer discretionary 15.8
Health care 11.1
Energy 10.8
Telecommunication services 9.5
Sector breakdowns are calculated as a percentage of net assets. Because the
fund is actively managed, there can be no guarantee the fund will continue to
maintain the same sector breakdown in the future.
6
Investment Portfolio -- Columbia Global Thematic Equity Fund
September 30, 2003
Common Stocks - 100.9% Shares Value
--------------------------------------------------------------
CONSUMER DISCRETIONARY - 15.0%
Automobiles - 2.4%
Harley-Davidson, Inc. 110 $ 5,302
Honda Motor Co., Ltd. 200 8,024
---------
13,326
---------
Hotels, Restaurants & Leisure - 2.5%
Carnival Corp. 295 9,703
Darden Restaurants, Inc. 200 3,800
---------
13,503
---------
Household Durables - 1.5%
Furniture Brands International, Inc. (a) 150 3,615
Koninklijke (Royal) Philips Electronics NV 200 4,535
---------
8,150
---------
Media - 5.4%
British Sky Broadcasting Group PLC (a) 1,430 14,607
News Corp., Ltd. 400 3,271
Omnicom Group, Inc. 100 7,185
WPP Group PLC 500 4,218
---------
29,281
---------
Specialty Retail - 3.2%
Home Depot, Inc. 430 13,696
Kingfisher PLC 937 4,065
---------
17,761
---------
--------------------------------------------------------------
CONSUMER STAPLES - 6.6%
Beverages - 2.4%
PepsiCo, Inc. 280 12,832
---------
Food Products - 2.9%
Nestle SA, Registered Shares 70 16,150
---------
Food & Staples Retailing - 1.3%
Wal-Mart Stores, Inc. 130 7,260
---------
--------------------------------------------------------------
ENERGY - 3.6%
Oil & Gas - 3.6%
Exxon Mobil Corp. 540 19,764
---------
--------------------------------------------------------------
FINANCIALS - 20.3%
Banks - 5.4%
Allied Irish Banks PLC 440 6,460
Banco Santander Central Hispano SA 550 4,665
Charter One Financial, Inc. 150 4,590
UBS AG 250 14,036
---------
29,751
---------
Shares Value
--------------------------------------------------
Capital Markets - 3.6%
Merrill Lynch & Co., Inc. 370 $ 19,806
---------
Diversified Financials - 8.3%
Citigroup, Inc. 650 29,582
Nomura Holdings, Inc. 1,000 16,156
---------
45,738
---------
Insurance - 3.0%
Alleanza Assicurazioni S.p.A. 600 5,782
Swiss Re, Registered Shares 50 3,178
Torchmark Corp. 180 7,315
---------
16,275
---------
--------------------------------------------------
HEALTH CARE - 13.7%
Health Care Equipment & Supplies - 1.3%
Medtronic, Inc. 150 7,038
---------
Pharmaceuticals - 12.4%
Eli Lilly & Co. 200 11,880
Johnson & Johnson 335 16,589
Novartis AG, Registered Shares 250 9,679
Novo-Nordisk A/S, Class B 150 5,531
Pfizer, Inc. 800 24,304
---------
67,983
---------
--------------------------------------------------
INDUSTRIALS - 14.2%
Aerospace & Defense - 4.4%
Bombardier, Inc., Class B 2,000 8,397
Honeywell International, Inc. 450 11,858
Ryanair Holdings PLC, ADR (a) 100 4,050
---------
24,305
---------
Commercial Services & Supplies - 2.6%
Allied Waste Industries, Inc. (a) 157 1,696
Manpower, Inc. 200 7,420
Securitas AB 440 5,338
---------
14,454
---------
Industrial Conglomerates - 4.1%
General Electric Co. 750 22,358
---------
Machinery - 1.5%
Sandvik AB 200 5,472
Tomra Systems ASA 500 2,566
---------
8,038
---------
Trading Companies & Distributors - 1.6%
Mitsubishi Corp. 1,000 8,589
---------
--------------------------------------------------
See notes to investment portfolio.
7
Investment Portfolio -- Columbia Global Thematic Equity Fund (continued)
September 30, 2003
Common Stocks (continued) Shares Value
--------------------------------------------------------------
INFORMATION TECHNOLOGY - 17.1%
Communications Equipment - 2.3%
Cisco Systems, Inc. (a) 210 $ 4,103
Nokia Oyj 300 4,621
QUALCOMM, Inc. 100 4,164
---------
12,888
---------
Electronic Equipment & Instruments - 1.4%
Hoya Corp. 100 7,764
---------
Information Technology Consulting
& Services - 0.7%
Accenture Ltd., Class A (a) 170 3,798
---------
Internet Software & Services - 0.4%
T-Online International AG (a) 200 2,002
---------
Semiconductor Equipment & Products - 6.4%
Applied Materials, Inc. (a) 600 10,884
ASML Holding NV (a) 156 2,045
Samsung Electronics Co., Ltd., GDR (b) 20 3,380
Samsung Electronics Co., Ltd., GDR,
Registered Shares 60 10,140
Taiwan Semiconductor Manufacturing Co.,
Ltd., ADR (a) 799 8,653
---------
35,102
---------
Software - 5.9%
Dassault Systemes SA 100 3,507
Microsoft Corp. 650 18,064
Veritas Software Corp. (a) 350 10,990
---------
32,561
---------
--------------------------------------------------------------
MATERIALS - 4.8%
Chemicals - 2.0%
Potash Corp. of Saskatchewan, Inc. 110 7,792
Praxair, Inc. 50 3,098
---------
10,890
---------
Metals & Mining - 2.8%
BHP Billiton Ltd. 1,600 11,494
JFE Holdings, Inc. 100 2,190
Johnson Matthey PLC 100 1,519
---------
15,203
---------
--------------------------------------------------------------
TELECOMMUNICATION SERVICES - 5.6%
Diversified Telecommunication Services - 1.7%
Alltel Corp. 200 9,268
Telefonica SA 21 248
---------
9,516
---------
Shares Value
---------------------------------------------------------
Wireless Telecommunication Services - 3.9%
AT&T Wireless Services, Inc. (a) 489 $ 4,000
NTT DoCoMo, Inc. 3 7,351
Vodafone Group PLC 5,000 9,973
--------
21,324
--------
Total Common Stocks - 100.9%
(cost of $547,415)(c) 553,410
--------
Other Assets & Liabilities, Net - (0.9%) (4,814)
---------------------------------------------------------
Net Assets - 100.0% $548,596
--------
Notes to Investment Portfolio:
(a) Non-income producing.
(b) This security is exempt from registration under Rule 144A of the Securities
Act of 1933 and may be resold in transactions exempt from registration,
normally to qualified institutional buyers. At September 30, 2003, the
value of this security amounted to $3,380, which represents 0.6% of net
assets.
(c) Cost for federal income tax purposes is $577,703.
Summary of Securities by % of Total
Country Value Investments
---------------------------------------------
United States $306,257 55.3%
Japan 50,074 9.0
Switzerland 43,044 7.8
United Kingdom 34,383 6.2
Canada 16,189 2.9
Australia 14,764 2.7
South Korea 13,520 2.4
Sweden 10,810 2.0
Ireland 10,510 1.9
Panama 9,703 1.8
Taiwan 8,653 1.6
Netherlands 6,580 1.2
Italy 5,782 1.0
Denmark 5,531 1.0
Spain 4,914 0.9
Finland 4,621 0.8
France 3,507 0.6
Norway 2,566 0.5
Germany 2,002 0.4
-------- -----
$553,410 100.0%
-------- -----
Acronym Name
- ------- ----
ADR American Depositary Receipt
GDR Global Depositary Receipt
See notes to financial statements.
8
Investment Portfolio -- Columbia European Thematic Equity Fund
September 30, 2003
Common Stocks--97.0% Shares Value
- -----------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 15.8%
Automobiles - 1.9%
Bayerische Motoren Werke (BMW) AG 135 $ 5,105
---------
Hotels, Restaurants & Leisure - 3.6%
Carnival PLC 101 3,224
Compass Group PLC 1,090 6,287
---------
9,511
---------
Household Durables - 2.2%
Koninklijke (Royal) Philips Electronics NV 260 5,895
---------
Media - 6.1%
British Sky Broadcasting Group PLC (a) 650 6,639
Societe Television Francaise 140 4,148
WPP Group PLC 620 5,230
---------
16,017
---------
Specialty Retail - 2.0%
Kingfisher PLC 1,190 5,163
---------
- -----------------------------------------------------------------------------
CONSUMER STAPLES - 7.3%
Beverages - 1.7%
Diageo PLC 420 4,534
---------
Food Products - 5.6%
Nestle SA, Registered Shares 56 12,920
Koninklijke Numico NV 84 1,705
---------
14,625
---------
- -----------------------------------------------------------------------------
ENERGY - 10.8%
Energy Equipment & Services - 1.3%
Saipem S.p.A. 450 3,392
---------
Oil & Gas - 9.5%
BP PLC 700 4,806
Royal Dutch Petroleum Co. 90 3,955
Shell Transport & Trading Co. PLC 1,180 7,287
Total B 60 9,061
---------
25,109
---------
- -----------------------------------------------------------------------------
FINANCIALS - 22.7%
Banks - 13.9%
Allied Irish Banks PLC 240 3,524
Banco Santander Central Hispano SA 745 6,320
Bankinter SA 35 1,253
ForeningsSparbanken AB 250 3,694
Lloyds TSB Group PLC 920 6,327
UBS AG 180 10,106
UniCredito Italiano S.p.A. 1,140 5,393
---------
36,617
---------
Shares Value
- -----------------------------------------------------------------------------
Diversified Financials - 4.4%
Fortis 340 $ 5,788
Sanpaolo IMA S.p.A. 580 5,785
---------
11,573
---------
Insurance - 4.4%
Alleanza Assicurazioni, S.p.A. 460 4,433
AMB Generali Holding AG 30 1,783
Swiss Re, Registered Shares 83 5,276
---------
11,492
---------
- -----------------------------------------------------------------------------
HEALTH CARE - 9.5%
Health Care Equipment & Supplies - 1.7%
Essilor International SA 101 4,371
---------
Pharmaceuticals - 7.8%
Aventis SA 140 7,267
Novartis AG, Registered Shares 250 9,680
Novo Nordisk A/S, Class B 60 2,212
Shire Pharmaceuticals Group PLC (a) 200 1,449
---------
20,608
---------
- -----------------------------------------------------------------------------
INDUSTRIALS - 9.2%
Aerospace & Defense - 1.1%
Ryanair Holdings PLC ADR (a) 75 3,038
---------
Air Freight & Logistics - 2.3%
Exel PLC 250 2,753
TPG NV 175 3,309
---------
6,062
---------
Commercial Services & Supplies - 3.5%
Adecco SA 125 6,180
Securitas AB 240 2,912
---------
9,092
---------
Machinery - 2.3%
Sandvik AB 145 3,967
Tomra Systems ASA 400 2,052
---------
6,019
---------
- -----------------------------------------------------------------------------
INFORMATION TECHNOLOGY - 8.0%
Communications Equipment - 2.9%
Nokia Oyj 500 7,702
---------
Information Technology Consulting & Services - 0.7%
Cap Gemini SA (a) 44 1,825
---------
Internet Software & Services - 0.9%
T-Online International AG (a) 240 2,402
---------
See notes to investment portfolio.
9
Investment Portfolio -- Columbia European Thematic Equity Fund (continued)
September 30, 2003
Common Stocks (continued) Shares Value
- -----------------------------------------------------------------------------
Semiconductor Equipment & Products - 1.1%
ASML Holding NV (a) 209 $ 2,740
---------
Software - 2.4%
Dassault Systemes SA 110 3,858
SAP AG 20 2,444
---------
6,302
---------
- -----------------------------------------------------------------------------
MATERIALS - 2.6%
Chemicals - 1.7%
DSM NV 95 4,512
---------
Metals & Mining--0.9%
Johnson Matthey PLC 150 2,279
---------
- -----------------------------------------------------------------------------
TELECOMMUNICATION SERVICES - 9.5%
Diversified Telecommunication Services - 5.5%
Telecom Italia S.p.A. 3,465 8,539
Telefonica SA 505 5,967
---------
14,506
---------
Wireless Telecommunication Services - 4.0%
Vodafone Group PLC 5,290 10,552
---------
- -----------------------------------------------------------------------------
UTILITIES - 1.6%
Electric Utilities - 1.6%
National Grid Group PLC 655 4,197
---------
Total Common Stocks (cost of $237,441) 255,240
---------
Preferred Stock - 1.6%
- -----------------------------------------------------------------------------
HEALTH CARE - 1.6%
Health Care Providers & Services - 1.6%
Fresenius AG (cost of $1,546) 65 4,147
---------
Total Investments - 98.6% (cost of $238,987)(b) 259,387
---------
Other Assets & Liabilities, Net - 1.4% 3,743
- -----------------------------------------------------------------------------
Net Assets - 100.0% $ 263,130
---------
Notes to Investment Portfolio:
(a) Non-income producing.
(b) Cost for federal income tax purposes is $254,985.
% of Total
Summary of Securities by Country Value Investments
- -------------------------------------------------------------------------------
United Kingdom $ 70,728 27.3%
Switzerland 44,162 17.0
France 30,530 11.8
Italy 27,542 10.6
Netherlands 22,116 8.5
Germany 15,880 6.1
Spain 13,540 5.2
Sweden 10,573 4.1
Finland 7,702 3.0
Ireland 6,561 2.5
Belgium 5,788 2.2
Denmark 2,212 0.9
Norway 2,053 0.8
-------- -----
$259,387 100.0%
-------- -----
Acronym Name
- ------- ----
ADR American Depositary Receipt
See notes to financial statements.
10
Statements of Assets and Liabilities
See notes to financial statements.
September 30, 2003
Columbia Columbia
Global Thematic European Thematic
Equity Fund Equity Fund
- ---------------------------------------------------------------------------------------------
Assets:
Investments, at cost $ 547,415 $ 238,987
---------- ---------
Investments, at value $ 553,410 $ 259,387
Cash 1,785 6,505
Foreign currency (cost of $16,484 and $2,997, respectively) 16,533 3,137
Receivable for:
Investments sold 8,202 --
Dividends 1,499 1,925
Expense reimbursement due from Advisor 16,077 34,580
Deferred Trustees' compensation plan 960 957
---------- ---------
Total Assets 598,466 306,491
---------- ---------
Liabilities:
Payable for:
Investments purchased 9,527 --
Management fee 420 1,479
Administration fee 73 262
Transfer agent fee 482 392
Pricing and bookkeeping fees 1,083 1,117
Trustees' fees 142 142
Audit fee 28,100 28,100
Custody fee 2,605 5,669
Deferred Trustees' fees 960 957
Other liabilities 6,478 5,243
---------- ---------
Total Liabilities 49,870 43,361
---------- ---------
Net Assets $ 548,596 $ 263,130
---------- ---------
Composition of Net Assets:
Paid-in capital $1,224,635 $ 958,904
Accumulated net investment income 5,707 5,488
Accumulated net realized loss (687,924) (722,015)
Net unrealized appreciation on:
Investments 5,995 20,400
Foreign currency translations 183 353
---------- ---------
Net Assets $ 548,596 $ 263,130
---------- ---------
Class Z:
Net assets $ 548,596 $ 263,130
Shares outstanding 78,572 37,965
---------- ---------
Net asset value and offering price per share (a) $ 6.98 $ 6.93
---------- ---------
(a) Redemption price per share is equal to net asset value less any applicable
redemption fee.
11
Statements of Operations
For the Period Ended September 30, 2003 (a)
Columbia Columbia
Global Thematic European Thematic
Equity Fund Equity Fund
- -------------------------------------------------------------------------------------------
Investment Income:
Dividends $ 11,894 $ 10,337
Interest 8 54
--------- ---------
Total Investment Income (net of foreign taxes
withheld of $826 and $1,427, respectively) 11,902 10,391
--------- ---------
Expenses:
Management fee 6,360 4,178
Administration fee 1,122 737
Pricing and bookkeeping fees 11,290 11,077
Transfer agent fee 1,647 980
Trustees' fees 5,122 5,131
Custody fee 13,877 33,739
Audit fee 32,469 32,469
Registration fee 7,750 7,900
Reports to shareholders 5,101 3,665
Other expenses 3,784 4,220
--------- ---------
Total Expenses 88,522 104,096
Fees and expenses waived or reimbursed by Advisor (76,534) (96,210)
Custody earnings credit (45) (33)
--------- ---------
Net Expenses 11,943 7,853
--------- ---------
Net Investment Income (Loss) (41) 2,538
--------- ---------
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currency:
Net realized gain (loss) on:
Investments (371,908) (138,302)
Foreign currency transactions 6,288 3,488
--------- ---------
Net realized loss (365,620) (134,814)
--------- ---------
Net change in unrealized appreciation/depreciation on:
Investments 370,476 110,817
Foreign currency translations 13 38
--------- ---------
Net change in unrealized appreciation/depreciation 370,489 110,855
--------- ---------
Net Gain (Loss) 4,869 (23,959)
--------- ---------
Net Increase (Decrease) in Net Assets from Operations $ 4,828 $ (21,421)
--------- ---------
(a) The Funds have changed their fiscal year end from October 31 to September
30.
See notes to financial statements.
12
Statements of Operations
See notes to financial statements.
For the Year Ended October 31, 2002
Columbia Columbia
Global Thematic European Thematic
Equity Fund Equity Fund
- -------------------------------------------------------------------------------------------
Investment Income:
Dividends $ 20,574 $ 19,018
Interest 138 195
--------- ---------
Total Investment Income (net of foreign taxes
withheld of $1,450 and $2,358, respectively) 20,712 19,213
--------- ---------
Expenses:
Management fee 13,091 9,769
Administration fee 2,310 1,724
Pricing and bookkeeping fees 11,912 11,907
Transfer agent fee 2,516 1,354
Trustees' fees 5,397 5,394
Custody fee 6,265 10,740
Audit fee 13,575 13,575
Registration fee 27,813 27,775
Reports to shareholders 16,207 2,325
Other expenses 3,613 3,729
--------- ---------
Total Expenses 102,699 88,292
Fees and expenses waived or reimbursed by Advisor (77,947) (69,815)
Custody earnings credit (152) (121)
--------- ---------
Net Expenses 24,600 18,356
--------- ---------
Net Investment Income (Loss) (3,888) 857
--------- ---------
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currency:
Net realized gain (loss) on:
Investments (236,108) (450,808)
Foreign currency transactions 265 (1,167)
--------- ---------
Net realized loss (235,843) (451,975)
--------- ---------
Net change in unrealized appreciation/depreciation on:
Investments (51,742) 198,750
Foreign currency translations 265 135
--------- ---------
Net change in unrealized appreciation/depreciation (51,477) 198,885
--------- ---------
Net Loss (287,320) (253,090)
--------- ---------
Net Decrease in Net Assets from Operations $(291,208) $(252,233)
--------- ---------
13
Statements of Changes in Net Assets
Columbia Columbia
Global Thematic European Thematic
Equity Fund Equity Fund
--------------------------------------- --------------------------------------
Period Ended Year Ended Period Ended Period Ended Year Ended Period Ended
September 30, October 31, October 31, September 30, October 31, October 31,
Increase (Decrease) in Net Assets: 2003 (a) (b) 2002 (c) 2001 (d) 2003 (a) (b) 2002 (c) 2001 (d)
- -----------------------------------------------------------------------------------------------------------------------
Operations:
Net investment income (loss) $ (41) $ (3,888) $ (4,920) $ 2,538 $ 857 $ 7,885
Net realized loss on investments and
foreign currency transactions (365,620) (235,843) (75,203) (134,814) (451,975) (123,535)
Net change in unrealized appreciation/
depreciation on investments and
foreign currency translations 370,489 (51,477) (312,834) 110,855 198,885 (288,987)
---------- ---------- ---------- --------- ---------- -----------
Net Increase (Decrease) from
Operations 4,828 (291,208) (392,957) (21,421) (252,233) (404,637)
---------- ---------- ---------- --------- ---------- -----------
Distributions Declared to
Shareholders:
Class Z:
From net investment income -- (839) -- -- (20,508) --
---------- ---------- ---------- --------- ---------- -----------
Share Transactions:
Class Z:
Subscriptions 12,603 499,082 1,988,113 179,094 990,208 2,863,207
Distributions reinvested -- 839 -- -- 20,508 --
Redemptions (717,389) (553,111) (1,368) (828,486) (979,194) (1,283,649)
---------- ---------- ---------- --------- ---------- -----------
Net Increase (Decrease) from
Share Transactions (704,786) (53,190) 1,986,745 (649,392) 31,522 1,579,558
---------- ---------- ---------- --------- ---------- -----------
Redemption fees 3 -- -- 241 -- --
---------- ---------- ---------- --------- ---------- -----------
Total Increase (Decrease) in Net Assets (699,955) (345,237) 1,593,788 (670,572) (241,219) 1,174,921
Net Assets:
Beginning of period 1,248,551 1,593,788 -- 933,702 1,174,921 --
---------- ---------- ---------- --------- ---------- -----------
End of period $ 548,596 $1,248,551 $1,593,788 $ 263,130 $ 933,702 $ 1,174,921
---------- ---------- ---------- --------- ---------- -----------
Accumulated (undistributed) net
investment income (loss) $ 5,707 $ (540) $ (176) $ 5,488 $ (538) $ 849
---------- ---------- ---------- --------- ---------- -----------
Changes in Shares:
Class Z:
Subscriptions 1,965 67,200 205,106 29,213 155,828 318,744
Issued for distributions reinvested -- 104 -- -- 2,658 --
Redemptions (119,485) (76,155) (163) (149,415) (157,802) (161,261)
---------- ---------- ---------- --------- ---------- -----------
Net Increase (Decrease) (117,520) (8,851) 204,943 (120,202) 684 157,483
---------- ---------- ---------- --------- ---------- -----------
(a) The Funds have changed their fiscal year end from October 31 to September
30.
(b) Approximately $670,000 and $655,000 of redemptions in Columbia Global
Thematic Equity Fund and Columbia European Thematic Equity Fund,
respectively, were by an affiliate of the Funds' investment advisor and
were due to certain regulatory requirements.
(c) On July 29, 2002, the outstanding shares of the Funds were redesignated
Class Z shares.
(d) The Funds commenced investment operations on January 2, 2001.
See notes to financial statements.
14
Notes to Financial Statements
September 30, 2003
Note 1. Accounting Policies
Organization:
Columbia Global Thematic Equity Fund (the "Global Thematic Equity Fund") and
Columbia European Thematic Equity Fund (the "European Thematic Equity Fund")
(collectively, the "Funds") are a separate series of Columbia Funds Trust XI,
an open-end management investment company, which is registered under the
Investment Company Act of 1940, and is organized as a Massachusetts business
trust. The Funds may issue an unlimited number of shares. Each Fund's
investment goal is to seek long-term growth of capital. On July 29, 2002, the
outstanding shares of the Funds were redesignated Class Z shares. 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.
Effective October 13, 2003, the Liberty Global Thematic Equity Fund and the
Liberty European Thematic Equity Fund were renamed Columbia Global Thematic
Equity Fund and Columbia European Thematic Equity Fund, respectively. Also on
this date, the Liberty-Stein Roe Funds Investment Trust was renamed Columbia
Funds Trust XI.
Effective February 11, 2003, the Board of Trustees approved a change in each
Fund's fiscal year end from October 31 to September 30.
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 Funds in the preparation of their financial
statements.
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 closing bid price on such exchange. 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 on which such securities are normally traded.
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 Funds'
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 Funds' 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.
Cost is determined and gains (losses) are based upon the specific
identification method for both financial statement and federal income tax
purposes.
Federal Income Taxes:
Consistent with the Funds' policy to qualify as a regulated investment company
and to distribute all of their taxable income, no federal income tax has been
accrued.
Distributions to Shareholders:
Distributions to shareholders are recorded on the ex-date.
15
Notes to Financial Statements (continued)
September 30, 2003
Foreign Currency Translations and Transactions:
The books and records of the Funds are maintained in U.S. dollars. Foreign
currencies, investments and other assets and liabilities of the Funds 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 foreign
exchange rates.
Net realized and unrealized gains (losses) on foreign currency transactions and
translations include gains (losses) arising from the fluctuation in exchange
rates between trade and settlement dates on securities transactions, gains
(losses) arising from the disposition of foreign currency and currency gains
(losses) between the accrual and payment dates on dividends and interest income
and foreign withholding taxes.
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.
Forward Currency Contracts:
The Funds 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 Funds 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 Funds' portfolio securities.
While the maximum potential loss from such contracts is the aggregate face
value in U.S. dollars at the time the contract is opened, the actual 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. At September 30, 2003, the Funds
had no outstanding forward currency contracts.
Redemption Fees:
Effective February 10, 2003, the Funds began imposing a 2.00% redemption fee to
shareholders who redeem shares held for 60 days or less. This amount, which is
retained by the Funds', is accounted for as an addition to paid-in capital. For
the period February 10, 2003 to September 30, 2003, the redemption fees for
Global Thematic Equity Fund and European Thematic Equity Fund amounted to $3
and $241, respectively. These amounts are included in the Statements of Changes
in Net Assets.
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 Funds become 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 Funds' 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 Funds. The Funds may experience costs and
delays in liquidating the collateral if the issuer defaults or enters into
bankruptcy.
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, capital loss
carryforwards and non-deductible expenses. Reclassifications are made to the
Funds' capital accounts to reflect income and gains available for distribution
(or available capital loss carryforwards) under income tax regulations.
16
Notes to Financial Statements (continued)
September 30, 2003
For the period ended September 30, 2003, permanent items identified and
reclassified among the components of net assets are as follows:
Accumulated Accumulated
Net Investment Net Realized Paid-In
Income Loss Capital
-------------- ------------ -------
Global Thematic
Equity Fund $6,288 $(6,288) $--
European
Thematic
Equity Fund 3,488 (3,488) --
Net investment income, net realized gains (losses) and net assets were not
affected by this reclassification.
The tax character of distributions paid during the period ended September 30,
2003 was as follows:
Ordinary Income
---------------
Global Thematic Equity Fund $--
European Thematic Equity Fund --
The tax character of distributions paid during the year ended October 31, 2002
was as follows:
Ordinary Income
---------------
Global Thematic Equity Fund $ 839
European Thematic Equity Fund 20,508
The tax character of distributions paid during the year ended October 31, 2001
was as follows:
Ordinary Income
---------------
Global Thematic Equity Fund $--
European Thematic Equity Fund --
As of September 30, 2003, the components of distributable earnings on a tax
basis were as follows:
Undistributed Undistributed Unrealized
Ordinary Long-Term Appreciation
Income Capital Gains (Depreciation)*
------------- ------------- ---------------
Global
Thematic
Equity
Fund $6,653 $-- $(24,110)
European
Thematic
Equity
Fund 6,282 -- 4,755
*The difference between book-basis and tax-basis unrealized appreciation
(depreciation) is attributable primarily to the tax deferral of losses on wash
sales.
The following capital loss carry forwards, determined as of September 30, 2003,
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:
Global European
Thematic Thematic
Equity Equity
Year of Expiration Fund Fund
------------------ -------- --------
2009 $ 79,387 $ 92,707
2010 235,325 205,264
2011 342,924 408,046
-------- --------
$657,636 $706,017
-------- --------
Expired capital loss carryforwards, if any, are recorded as a reduction of
paid-in capital.
Note 3. Fees and Compensation Paid to Affiliates
On April 1, 2003, Stein Roe & Farnham Incorporated ("Stein Roe"), the
investment advisor to the Funds, 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 Stein Roe with respect to the
Funds. The merger did not change the way the Funds are managed, the investment
personnel assigned to manage the Funds or the fees paid by the Funds.
Management Fee:
Columbia is the investment advisor of the Funds and receives a monthly fee
equal to 0.85% annually of each Fund's average daily net assets.
Nordea Investment Management North America, Inc. ("Nordea"), has been retained
by Columbia as sub-advisor to manage the day-to-day investment operations of
the Funds. Columbia, out of the advisory fee it receives, pays Nordea a monthly
sub-advisory fee equal to 0.60% annually of the average daily net assets of
each Fund.
17
Notes to Financial Statements (continued)
September 30, 2003
At a 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 each Fund's average
daily net assets as follows:
Average Daily Net Assets Annual Fee Rate
------------------------ ---------------
First $1 billion 0.85%
Next $500 million 0.80%
Over $1.5 billion 0.75%
Administration Fee:
Columbia also provides accounting and other services for a monthly fee equal to
0.15% annually of each Fund's average daily net assets.
At a meeting held on October 8, 2003, the Board of Trustees approved a new
administration fee structure to go into effect on November 1, 2003. Under the
new structure, Columbia will receive a monthly fee equal to 0.05% annually of
each Fund's average daily net assets.
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 Bank and Trust Company ("State Street"). Columbia pays fees to State
Street under the Outsourcing Agreement.
Under its pricing and bookkeeping agreement with each Fund, Columbia receives
from each Fund an annual flat fee of $10,000, paid monthly, and in any month
that a 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. Each 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 each
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 meeting held on October 8, 2003, the Board of Trustees approved the change
of transfer agent fees structure of the Funds. Effective November 1, 2003, each
Fund will be charged an annual $28.00 charge per open account for the transfer
agent fees.
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 brokerage
commissions, interest, taxes and extraordinary expenses, if any) exceed 1.60%
annually of each Fund's average daily net assets.
Other:
Each Fund pays no compensation to their officers, all of whom are employees of
Columbia or its affiliates.
The Funds' 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 each Fund's assets.
The Funds have an agreement with their custodian bank under which custody fees
were 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. The
amounts of custody credits for the period ended September 30, 2003 and the year
ended October 31, 2002 were as follows:
Period Ended Year Ended
September 30, October 31,
2003 2002
------------- -----------
Global Thematic Equity Fund $45 $152
European Thematic Equity Fund 33 121
Note 4. Portfolio Information
Investment Activity:
For the period ended September 30, 2003, purchases and sales of investments,
other than short-term obligations, were as follows:
Purchases Sales
--------- ----------
Global Thematic Equity Fund $335,324 $1,031,708
European Thematic Equity Fund 357,397 986,427
18
Notes to Financial Statements (continued)
September 30, 2003
Unrealized appreciation (depreciation) at September 30, 2003, based on cost of
investments for federal income tax purposes was:
Net
Gross Gross Unrealized
Unrealized Unrealized Appreciation
Appreciation Depreciation (Depreciation)
------------ ------------ --------------
Global
Thematic
Equity
Fund $13,634 $(37,927) $(24,293)
European
Thematic
Equity
Fund 9,487 (5,085) 4,402
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 foreign
currency exchange or other foreign governmental laws or restrictions.
Note 5. Related Party Shareholder
As of September 30, 2003, approximately 59% and 83% of the outstanding shares
in Global Thematic Equity Fund and European Thematic Equity Fund, respectively,
were held by an affiliate of Columbia. Due to these ownership levels, the
affiliate may be deemed to have control of each Fund.
19
Financial Highlights -- Columbia Global Thematic Equity Fund
Selected data for a share outstanding throughout each period is as follows:
Period Ended Year Ended Period Ended
September 30, October 31, October 31,
Class Z Shares 2003 (a) 2002 (b) 2001 (c)
- -------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 6.37 $ 7.78 $ 10.13
-------- --------- ---------
Income from Investment Operations:
Net investment loss (d) --(e) (0.02) (0.03)
Net realized and unrealized gain (loss) on investments and
foreign currency 0.61 (1.39) (2.32)
-------- --------- ---------
Total from Investment Operations 0.61 (1.41) (2.35)
-------- --------- ---------
Less Distributions Declared to Shareholders:
From net investment income -- --(e) --
-------- --------- ---------
Redemption Fees:
Redemption fees added to paid-in capital --(d)(e) N/A N/A
-------- --------- ---------
Net Asset Value, End of Period $ 6.98 $ 6.37 $ 7.78
-------- --------- ---------
Total return (f)(g) 9.58%(h) (18.08)% (23.20)%(h)
-------- --------- ---------
Ratios to Average Net Assets/Supplemental Data:
Expenses (i) 1.60%(j) 1.60% 1.60%(j)
Net investment loss (i) (0.01)%(j) (0.25)% (0.40)%(j)
Waiver/reimbursement 10.25%(j) 5.07% 5.54%(j)
Portfolio turnover rate 41% (h) 41% 15%(h)
Net assets, end of period (000's) $ 549 $ 1,249 $ 1,594
(a) The Fund has changed its fiscal year end from October 31 to September 30.
(b) On July 29, 2002, the Stein Roe Global Thematic Equity Fund was
redesignated Liberty Global Thematic Equity Fund, Class Z shares.
(c) The Fund commenced investment operations on January 2, 2001. Per share
data, total return and portfolio turnover rate reflect activity from that
date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Rounds to less than $0.01 per share.
(f) Had the Advisor not waived or reimbursed a portion of expenses, total
return would have been reduced.
(g) Total return at net asset value assuming all distributions reinvested.
(h) Not annualized.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%, except for
the period ended September 30, 2003 which had an impact of 0.01%.
(j) Annualized.
20
Financial Highlights -- Columbia European Thematic Equity Fund
Selected data for a share outstanding throughout each period is as follows:
Period Ended Year Ended Period Ended
September 30, October 31, October 31,
Class Z Shares 2003 (a) 2002 (b) 2001 (c)
- -----------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 5.90 $ 7.46 $ 10.18
------- --------- ---------
Income from Investment Operations:
Net investment income (d) 0.03 0.01 0.05
Net realized and unrealized gain (loss) on investments and
foreign currency 1.00 (1.44) (2.77)
------- --------- ---------
Total from Investment Operations 1.03 (1.43) (2.72)
------- --------- ---------
Less Distributions Declared to Shareholders:
From net investment income -- (0.13) --
------- --------- ---------
Redemption Fees:
Redemption fees added to paid-in capital --(d)(e) N/A N/A
------- --------- ---------
Net Asset Value, End of Period $ 6.93 $ 5.90 $ 7.46
------- --------- ---------
Total return (f)(g) 17.46%(h) (19.58)% (26.72)%(h)
------- --------- ---------
Ratios to Average Net Assets/Supplemental Data:
Expenses (i) 1.60%(j) 1.60% 1.60%(j)
Net investment income (i) 0.52%(j) 0.07% 0.71%(j)
Waiver/reimbursement 19.60%(j) 6.08% 5.57%(j)
Portfolio turnover rate 67%(h) 71% 33%(h)
Net assets, end of period (000's) $ 263 $ 934 $ 1,175
(a) The Fund has changed its fiscal year end from October 31 to September 30.
(b) On July 29, 2002, the Stein Roe European Thematic Equity Fund was
redesignated Liberty European Thematic Equity Fund, Class Z shares.
(c) The Fund commenced investment operations on January 2, 2001. Per share
data, total return and portfolio turnover rate reflect activity from that
date.
(d) Per share data was calculated using average shares outstanding during the
period.
(e) Rounds to less than $0.01 per share.
(f) Had the Advisor not waived or reimbursed a portion of expenses, total
return would have been reduced.
(g) Total return at net asset value assuming all distributions reinvested.
(h) Not annualized.
(i) The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%, except for
the period ended September 30, 2003 which had an impact of 0.01%.
(j) Annualized.
21
Report of Ernst & Young LLP, Independent Auditors
To the Shareholders and Board of Trustees of Columbia Funds Trust XI
We have audited the accompanying statements of assets and liabilities,
including the Investment Portfolio, of the Columbia Global Thematic Equity Fund
and Columbia European Thematic Equity Fund (formerly, Liberty Global Thematic
Equity Fund and Liberty European Thematic Equity Fund, respectively)
(collectively, the "Funds") (two of the series constituting Columbia Funds
Trust XI (formerly, Liberty-Stein Roe Funds Investment Trust)) as of September
30, 2003, and the related statements of operations for the period from November
1, 2002 to September 30, 2003 and for the year ended October 31, 2002, the
statements of changes in net assets for the period from November 1, 2002 to
September 30, 2003 and for each of the two years in the period ended October
31, 2002, and the financial highlights for each of the periods indicated
therein. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
and financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of September 30, 2003, by correspondence
with the custodian and brokers, or by other appropriate auditing procedures
where replies from brokers were not received. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Columbia Global Thematic Equity Fund and Columbia European Thematic Equity
Fund, each a series of Columbia Funds Trust XI, at September 30, 2003, the
results of their operations, the changes in their net assets, and the financial
highlights for each of the periods indicated above, in conformity with
accounting principles generally accepted in the United States.
/s/ Ernst & Young LLP
Boston, Massachusetts
November 14, 2003
22
Trustees
Effective October 8, 2003, Patrick J. Simpson and Richard L. Woolworth were
appointed to the Board of Trustees of the Funds. Messrs. Simpson and Woolworth
had been directors/trustees of 15 Columbia Funds and 20 funds in the CMG Fund
Trust. Also effective October 8, 2003, the incumbent trustees of the Funds were
elected as directors of the 15 Columbia Funds and as trustees of the 20 funds
in the CMG Fund Trust. The new combined Board of Trustees of the Funds 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 Other
with Appointed Principal Occupation(s) Complex Overseen Directorships
Name, Address and Age Funds to Office/1/ During Past Five Years by Trustee Held
- ---------------------------------------------------------------------------------------------------------------------------------
Disinterested Trustees
Douglas A. Hacker (Age 48) Trustee 1996 Executive Vice President 124 None
P.O. Box 66100 - Strategy of United
Chicago, IL 60666 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).
Janet Langford Kelly (Age 45) Trustee 1996 Chief Administrative 124 None
3100 West Beaver Road Officer and Senior Vice
Troy, MI 48084-3163 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).
Richard W. Lowry (Age 67) Trustee 1995 Private Investor since 126/3/ None
10701 Charleston Drive August, 1987 (formerly
Vero Beach, FL 32963 Chairman and Chief
Executive Officer, U.S.
Plywood Corporation
(building products
manufacturer)).
Charles R. Nelson (Age 61) Trustee 1981 Professor of Economics, 124 None
Department of Economics University of
University of Washington Washington, since
Seattle, WA 98195 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.
John J. Neuhauser (Age 60) Trustee 1985 Academic Vice President 127/3,4/ Saucony, Inc. (athletic footwear);
84 College Road and Dean of Faculties SkillSoft Corp.
Chestnut Hill, MA 02467-3838 since August, 1999, (E-Learning)
Boston College (formerly
Dean, Boston College
School of Management
from September, 1977 to
September, 1999).
Patrick J. Simpson (Age 58) Trustee 2000 Partner, Perkins Coie 124 None
1211 S.W. 5th Avenue L.L.P. (formerly
Suite 1500 Partner, Stoel Rives
Portland, OR 97204 Boley Jones & Grey).
Thomas E. Stitzel (Age 67) Trustee 1998 Business Consultant 124 None
2208 Tawny Woods Place since 1999 (formerly
Boise, ID 83706 Professor of Finance
from 1975 to 1999 and
Dean from 1977 to 1991,
College of Business,
Boise State University);
Chartered Financial
Analyst.
23
Trustees (continued)
Number of
Year First Portfolios in
Position Elected or Columbia Funds Other
with Appointed Principal Occupation(s) Complex Overseen Directorships
Name, Address and Age Funds to Office/1/ During Past Five Years by Trustee Held
- -------------------------------------------------------------------------------------------------------------------------------
Disinterested Trustees (continued)
Thomas C. Theobald (Age 66) Trustee 1996 Managing Director, 124 Anixter International (network
27 West Monroe Street, William Blair Capital support equipment distributor),
Suite 3500 Partners (private equity Jones Lang LaSalle (real estate
Chicago, IL 60606 investing) since management services) and
September, 1994 MONY Group (life insurance).
(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 125/4/ Chairman of the Board of
359 Stickney Hill Road educational systems Directors, Enesco Group, Inc.
Hopkinton, NH 03229 needs (formerly General (designer, importer and
Manager, Global distributor of giftware and
Education Industry from collectibles).
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 124 NW Natural, a natural gas
100 S.W. Market Street Executive Officer, The service provider
#1500 Regence Group
Portland, OR 97207 (healthcare maintenance
organization) (formerly
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 126/3/ Lee Enterprises (print media),
399 Park Avenue Avenue Equity Partners WR Hambrecht + Co. (financial
Suite 3204 (private equity) since service provider) and First
New York, NY 10022 February, 1999 (formerly Health (healthcare).
Founding 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 125/5/ None
One Financial Center Chairman and Chief Operating
Boston, MA 02111 of the Officer of Columbia
Board Management Group, Inc.
and (Columbia Management)
President 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 Fund Trust (the
"CMG Funds Board"); simultaneous with that election, Patrick J. Simpson and
Richard L. Woolworth, who had been directors on the Columbia Board and
trustees on the CMG Funds Board, were appointed to serve as trustees of the
Liberty Board. The date shown is the earliest date on which a
trustee/director was elected or appointed to the board of a Fund in the
Columbia Funds Complex).
/2/ Mr. Mayer is an "interested person" (as defined in the Investment Company
Act of 1940 (1940 Act)) by reason of his affiliation with WR Hambrecht +
Co. 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.
24
Officers and Transfer Agent
Year First
Elected or
Position with Appointed Principal Occupation(s) During
Name, Address and Age Columbia Funds to Office Past Five Years
- ---------------------------------------------------------------------------------------------
Officers
Vicki L. Benjamin (Age 42) Chief Accounting 2001 Controller of the Columbia Funds
One Financial Center Officer and and of the Liberty All-Star Funds
Boston, MA 02111 Controller since May, 2002; Chief Accounting
Officer of the Columbia Funds and
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
One Financial Center and of the Liberty All-Star Funds
Boston, MA 02111 since December, 2000; Vice
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 Thematic Equity Funds 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 Thematic Equity
Funds. This report may also be used as sales literature when preceded or
accompanied by the current prospectus which provides details of sales charges,
investment objectives and operating policies of the fund and with the most
recent copy of the Columbia Funds Performance Update.
Annual Report:
Columbia Thematic Equity Funds
Columbia Thematic Equity Funds Annual Report, September 30, 2003
[LOGO] ColumbiaFunds
A Member of Columbia Management Group
(C)2003 Columbia Funds Distributor, Inc.
A Member of Columbia Management Group
One Financial Center, Boston, MA 02111-2621
LTF-02/585P-0903 (11/03) 03/3273
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, Thomas
E. Stitzel 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, Mr. Stitzel and Ms. Verville are each independent
trustees, as defined in paragraph (a)(2) of this item's instructions. Mr.
Stitzel was appointed to the Audit Committee effective October 8, 2003.
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 XI
-------------------------------------------------
By (Signature and Title) /s/ Joseph R. Palombo
-------------------------
Joseph R. Palombo, President
Date November 25, 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 25, 2003
----------------------------------------------
By (Signature and Title) /s/ J. Kevin Connaughton
--------------------------
J. Kevin Connaughton, Treasurer
Date November 25, 2003
----------------------------------------------