-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VpOWpdOFOcO63I6ebSrY2QpYWTHYrjVg8/f/q2DF5mO8q1dfQiPJzwxSWLzFIPK0 SutJEorTKRaJMupGLDcZQw== 0000891804-03-002453.txt : 20031107 0000891804-03-002453.hdr.sgml : 20031107 20031107170044 ACCESSION NUMBER: 0000891804-03-002453 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20030831 FILED AS OF DATE: 20031107 EFFECTIVENESS DATE: 20031107 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA DAILY INCOME CO CENTRAL INDEX KEY: 0000022082 IRS NUMBER: 930635121 STATE OF INCORPORATION: OR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-02507 FILM NUMBER: 03985888 BUSINESS ADDRESS: STREET 1: 1300 SW SIXTH AVE STREET 2: P O BOX 1350 CITY: PORTLAND STATE: OR ZIP: 97207 BUSINESS PHONE: 5032223600 MAIL ADDRESS: STREET 1: 1300 SW SIXTH AVE STREET 2: P O BOX 1350 CITY: PORTLAND STATE: OR ZIP: 92707 N-CSR 1 file001.txt COLUMBIA DAILY INCOME COMPANY 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 811-02507 --------------------- Columbia Daily Income Company ------------------------------------------------------------------------------ (Exact name of registrant as specified in charter) One Financial Center, Boston, Massachusetts 02111 - ------------------------------------------------------------------------------ (Address of principal executive offices) (Zip code) Vincent Pietropaolo, Esq. Columbia Management Group, Inc. One Financial Center Boston, MA 02111 - ------------------------------------------------------------------------------ (Name and address of agent for service) Registrant's telephone number, including area code: 1-617-772-3698 ------------------- Date of fiscal year end: August 31, 2003 ------------------ Date of reporting period: August 31, 2003 ----------------- Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORTS TO STOCKHOLDERS. COLUMBIA FUNDS Annual Report August 31, 2003 COLUMBIA COMMON STOCK FUND COLUMBIA GROWTH FUND COLUMBIA INTERNATIONAL STOCK FUND COLUMBIA MID CAP GROWTH FUND COLUMBIA SMALL CAP GROWTH FUND COLUMBIA REAL ESTATE EQUITY FUND COLUMBIA TECHNOLOGY FUND COLUMBIA STRATEGIC INVESTOR FUND COLUMBIA BALANCED FUND COLUMBIA SHORT TERM BOND FUND COLUMBIA FIXED INCOME SECURITIES FUND COLUMBIA NATIONAL MUNICIPAL BOND FUND COLUMBIA OREGON MUNICIPAL BOND FUND COLUMBIA HIGH YIELD FUND COLUMBIA DAILY INCOME COMPANY NOT FDIC MAY LOSE VALUE INSURED NO BANK GUARANTEE Photo of Women standing TABLE OF CONTENTS - -------------------------------------------------------------------------------- COLUMBIA FUNDS ANNUAL REPORT AUGUST 31, 2003 INTRODUCTION 1 TO OUR SHAREHOLDERS - -------------------------------------------------------------------------------- INVESTMENT 4 COLUMBIA COMMON STOCK FUND REVIEWS 6 COLUMBIA GROWTH FUND 8 COLUMBIA INTERNATIONAL STOCK FUND 10 COLUMBIA MID CAP GROWTH FUND 12 COLUMBIA SMALL CAP GROWTH FUND 14 COLUMBIA REAL ESTATE EQUITY FUND 16 COLUMBIA TECHNOLOGY FUND 18 COLUMBIA STRATEGIC INVESTOR FUND 20 COLUMBIA BALANCED FUND 22 COLUMBIA SHORT TERM BOND FUND 24 COLUMBIA FIXED INCOME SECURITIES FUND 26 COLUMBIA NATIONAL MUNICIPAL BOND FUND 28 COLUMBIA OREGON MUNICIPAL BOND FUND 30 COLUMBIA HIGH YIELD FUND 32 COLUMBIA DAILY INCOME COMPANY - -------------------------------------------------------------------------------- FINANCIAL 33 FINANCIAL HIGHLIGHTS INFORMATION 78 SCHEDULES OF INVESTMENTS 132 STATEMENTS OF ASSETS AND LIABILITIES 136 STATEMENTS OF OPERATIONS 144 STATEMENTS OF CHANGES IN NET ASSETS 150 NOTES TO FINANCIAL STATEMENTS 177 REPORT OF INDEPENDENT AUDITORS 178 UNAUDITED INFORMATION 179 OFFICERS AND DIRECTORS COLUMBIA FUNDS COLUMBIA FINANCIAL CENTER 1301 SW FIFTH AVENUE PORTLAND, OR 97201-5601 1-800-345-6611 COLUMBIAFUNDS.COM TO OUR SHAREHOLDERS - -------------------------------------------------------------------------------- The Board of Directors for Columbia Funds recently approved the change of the funds' fiscal year end from December 31 to August 31. As a result, this report covers the eight-month period since the last annual report. The next report you receive will be a report for the six-month period through February 2004. We also want to take this opportunity to announce several other changes of interest to you. As you may already know, our funds are part of a larger investment organization--Columbia Management Group (CMG). CMG was formed in 2001, shortly after FleetBoston purchased the asset management companies of Liberty Financial. Since that time, our efforts have been focused on streamlining our organization and strengthening certain key functions, such as investment research. As part of our effort to create a consistent identity, six of the asset management firms under the CMG umbrella, including Columbia Management Company, were consolidated last April and renamed Columbia Management Advisors, Inc. As of October 13, 2003, most of the funds managed by Columbia Management Advisors, Inc. including CMG's Liberty Funds, will have been renamed Columbia. Also, as of October 13, 2003, the Columbia Special Fund, Columbia Small Cap Fund and Columbia Strategic Value Fund were renamed Columbia Mid Cap Growth Fund, Columbia Small Cap Growth Fund and Columbia Strategic Investor Fund, respectively. In addition, our new website address is one that may be familiar to you: www.columbiafunds.com. For complete information about these and other changes that took effect on October 13, 2003, please visit us online at www.columbiafunds.com. You can also speak to a shareholder representative at 800-345-6611. Please make note of our new phone number. Also in October, shareholders of the Columbia Funds elected the current directors of Liberty Funds, as well as incumbent directors, Messrs. Nelson, Simpson and Woolworth, to their boards. This action will allow the funds to develop uniform policies and procedures. In addition, Joseph R. Palombo, who was already president of CMG's Liberty Funds, was named president of Columbia Funds. Joe has 19 years of experience in the financial services industry; and prior to joining Columbia Management, he was chief operating officer and chief compliance officer for Putnam Mutual Funds. Joe is responsible for CMG's transfer agent and fund administration activities. He is also executive vice president and chief operating officer of Columbia Management Advisors, Inc. These changes will not affect our commitment to you, our shareholders. We will continue to provide the best possible customer service and to offer a wide variety of investment products. As always, we are here to help you achieve your long-term financial goals. In the following pages, you will find detailed financial information, as well as a discussion of investment activity and management strategy, for 15 Columbia funds. But first, here is a review of the market and economic environment in which the funds performed. 1 TO OUR SHAREHOLDERS - -------------------------------------------------------------------------------- A REVIEW OF THE ECONOMY AND THE MARKETS THE ECONOMY STRENGTHENS AND STOCK MARKETS RALLY This eight-month reporting period began under a cloud of uncertainty about impending war with Iraq and a struggling economy. However, progress on both fronts encouraged investors back into the financial markets, and most major segments of the stock and bond markets posted gains for the period. A relatively swift end to the major conflicts of the war shifted attention to the economy, which continued to report good news throughout the summer. Gross domestic product (GDP) for the second quarter of 2003 was reported at 3.1%, then revised upward to 3.3%. Retailers were busy. Housing starts jumped. Industrial production picked up. Businesses showed signs of loosening their purse-strings, as outlays for new equipment rose 8.2% in the second quarter. Employment remained the only hold-out. Although the jobless rate edged lower--from 6.2% to 6.1%--it was largely the result of a shrinking labor force. Employers continued to cut jobs, to the surprise of most economists. Global economies were mixed during the period. In Europe, expectations that lower interest rates would spur an economic recovery have yet to be realized, but business executives are increasingly optimistic about the second half of 2003. Economic growth in Japan was modest but surprisingly steady while in emerging Asian markets, the pace of growth was slowed by the effects of SARS (severe acute respiratory syndrome). EQUITY MARKETS CONTINUE TO CLIMB After a weak first quarter, major US stock market indices hit a 14-month high in August. Stronger-than-expected earnings and an upbeat American consumer helped sustain the climb. Investors shifted away from defensive sectors, which did well early in the period, to sectors that were expected to benefit from a stronger economy. The S&P 500's information technology group was up more than 30% through August, compared to a 15.95% gain for the broader index. Consumer discretionary stocks were also strong. Real estate investments turned in their best performance since 2000. The NAREIT Index returned 20.61%. Small-cap stocks led large-cap stocks, and growth stocks outperformed value. International equity markets rebounded, but in Europe they generally lagged the US market. The Japanese stock market staged a surprising turnaround. The Nikkei Index, a broad measure of Japanese stock performance, gained 20.57% during the reporting period. 2 TO OUR SHAREHOLDERS - -------------------------------------------------------------------------------- BONDS LOSE THEIR LUSTER The bond market's modest gains for the year through August were the result of a sharp downturn in the final months of the reporting period. The yield on the 10-year Treasury note, a bellwether for bonds, plummeted to 3.19% in June--a 45-year low--but then rose more than one full percentage point in July, bringing Treasury bond prices down sharply. High-yield and investment-grade corporate bonds, which were helped by an improving economy early in the period, held up better than Treasuries when interest rates began to rise. Mortgage bonds were lackluster as a flurry of mortgage prepayment activity hurt mortgage bond prices. Municipal bonds came under pressure as state and local governments grappled with declining revenues. Short-term interest rates remained at a 45-year low, which kept money market fund yields below 1.0%. KEEPING A LONG-TERM PERSPECTIVE While we are all pleased about the positive returns generated during the eight-month period covered by this report, it is also important to remember that a long-term perspective makes it easier to benefit from strong market moves in any asset class. If you found yourself sitting on the sidelines of this stock market rally, it may be time to develop an asset allocation plan you can live with in any environment. If you need guidance in developing a plan, consider talking with a financial advisor before you make a significant change in your portfolio. Sincerely, /s/ Joseph R. Palombo /s/ Jeff B. Curtis Joseph R. Palombo Jeff B. Curtis Executive Vice President and Executive Vice President and Chief Operating Officer Chief Operations Officer--West Coast Columbia Management Advisors, Inc. Columbia Management Advisors, Inc. Economic and market conditions change frequently. There is no assurance that the trends described in this report will continue or commence. 3 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA COMMON STOCK FUND The Board of Directors for Columbia Common Stock Fund approved the change of the fund's fiscal year end from December 31 to August 31. As a result, this report covers the eight-month period since the last annual report. The next report you receive will cover the six-month period through February 2004. For the eight months ended August 31, 2003, Columbia Common Stock Fund class A shares returned 15.49% without sales charge. This was slightly less than the S&P 500 Index, which returned 15.95% over the same period. The fund's performance surpassed the average return of its peer group, the Lipper Large Cap Core Category, which was 14.62%. 1 Strong stock selection in consumer discretionary and finance helped performance relative to the peer group. In addition, the fund's overweight in the consumer discretionary sector and underweight in the consumer staples sector benefited returns. STOCKS DECLINED EARLY IN PERIOD, SOARED IN SECOND HALF In the first three months of 2003, the sluggish stock market reflected investor fears of impending war in Iraq, rising unemployment and generally weak economic growth. During this period, we built up our positions in out-of-favor cyclical stocks, particularly in the travel sector. The fund benefited from increased exposure to the travel and leisure industries through investments in Carnival, which we later sold at a profit, as well as Royal Caribbean Cruises and Hilton Hotels (1.1% and 0.6% of net assets, respectively). 2 We also added shares of Target and Dollar General in the retail area (1.6% and 0.9% of net assets, respectively) as well as Home Depot, which is no longer in the portfolio. In the last five months of the period, investor psychology shifted. The United States declared a swift military victory in Iraq and corporate profits rose, a sign that the economy might finally be on the mend. Home mortgage and US Treasury rates reached 45-year lows, and prospects of lower tax rates on income and dividends added to the positive mood. Stocks rallied, and we took profits on some of the cyclical and retail stocks we had purchased earlier in the period. STRONG RETURNS FROM FINANCIALS, TECHNOLOGY Financial stocks performed well during the period and our emphasis in that sector helped performance. Our investments in J.P. Morgan Chase, Citigroup, Merrill Lynch and American Express (0.5%, 4.9%, 1.0% and 2.0% of net assets, respectively) did well. All four companies posted gains as the economy strengthened over the summer. We made a strategic decision to increase our exposure to technology throughout the period, with an emphasis on mid cap rather than the largest semiconductor companies. Our selection of Silicon Laboratories, VERITAS Software and National Semiconductor (0.8%, 0.7% and 0.7% of net assets, respectively) helped performance when these companies' returns outpaced those of their large cap counterparts. Strong stock selection in the technology sector helped performance as tech stocks rallied during the summer. The fund remained sharply underweight in both the more defensive consumer staples and utilities sectors. With the prospect of improved economic growth, we believe there are better opportunities elsewhere. PERFORMANCE OF A $10,000 INVESTMENT 8/31/93 - 8/31/03 WITHOUT WITH SALES CHARGE SALES CHARGE ------------ ------------ Class A $ 22,132 $ 20,856 Class B 21,975 21,975 Class D 21,962 21,743 Class Z 22,200 n/a ---------------------------------------------------- GROWTH OF $10,000 OVER 10 YEARS (MOUNTAIN CHART) CLASS A SHARES CLASS A SHARES WITH WITHOUT SALES CHARGE SALES CHARGE S&P 500 INDEX -------------------- ------------ ------------- 08/31/93 $10000.00 $ 9425.00 $10000.00 10069.00 9490.00 9923.00 10177.00 9592.00 10128.00 10019.00 9443.00 10032.00 10246.00 9657.00 10154.00 10574.00 9966.00 10499.00 10380.00 9783.00 10213.00 9984.00 9410.00 9768.00 10132.00 9549.00 9893.00 10327.00 9733.00 10055.00 9984.00 9410.00 9809.00 10382.00 9785.00 10131.00 10706.00 10090.00 10546.00 10443.00 9842.00 10288.00 10497.00 9893.00 10519.00 10239.00 9650.00 10136.00 10456.00 9855.00 10286.00 10546.00 9939.00 10553.00 10980.00 10349.00 10964.00 11207.00 10563.00 11288.00 11332.00 10680.00 11619.00 11699.00 11026.00 12084.00 11872.00 11190.00 12365.00 12325.00 11616.00 12775.00 12435.00 11720.00 12807.00 12866.00 12126.00 13347.00 12684.00 11955.00 13299.00 13256.00 12494.00 13883.00 13679.00 12893.00 14151.00 13936.00 13135.00 14632.00 14150.00 13336.00 14768.00 14444.00 13613.00 14910.00 14643.00 13801.00 15129.00 14945.00 14086.00 15520.00 15041.00 14176.00 15579.00 14338.00 13514.00 14890.00 14922.00 14064.00 15204.00 15507.00 14615.00 16060.00 15558.00 14663.00 16504.00 16611.00 15656.00 17751.00 16510.00 15560.00 17400.00 17058.00 16077.00 18487.00 17220.00 16230.00 18631.00 16969.00 15993.00 17866.00 17442.00 16439.00 18932.00 18457.00 17396.00 20085.00 19214.00 18109.00 20985.00 20586.00 19402.00 22655.00 19983.00 18834.00 21387.00 20836.00 19638.00 22559.00 20048.00 18895.00 21805.00 20359.00 19188.00 22815.00 20697.00 19507.00 23207.00 20819.00 19622.00 23465.00 21993.00 20729.00 25157.00 23036.00 21711.00 26445.00 23054.00 21728.00 26712.00 22602.00 21303.00 26252.00 23940.00 22564.00 27318.00 23667.00 22306.00 27029.00 20150.00 18992.00 23120.00 21196.00 19977.00 24602.00 22481.00 21188.00 26602.00 23888.00 22514.00 28215.00 26136.00 24633.00 29840.00 27335.00 25764.00 31087.00 26649.00 25117.00 30120.00 28054.00 26441.00 31325.00 28494.00 26856.00 32537.00 27733.00 26139.00 31769.00 29727.00 28018.00 33533.00 28815.00 27158.00 32486.00 28290.00 26664.00 32327.00 27764.00 26168.00 31441.00 29416.00 27725.00 33432.00 30466.00 28715.00 34110.00 32870.00 30980.00 36119.00 31618.00 29800.00 34306.00 32892.00 31001.00 33658.00 36280.00 34194.00 36950.00 35144.00 33123.00 35837.00 33644.00 31709.00 35103.00 35158.00 33136.00 35970.00 34736.00 32738.00 35409.00 36886.00 34765.00 37608.00 34123.00 32161.00 35622.00 33041.00 31141.00 35472.00 30401.00 28653.00 32677.00 30988.00 29206.00 32837.00 31574.00 29758.00 34003.00 28148.00 26530.00 30902.00 26352.00 24837.00 28943.00 28402.00 26769.00 31192.00 28530.00 26890.00 31400.00 27754.00 26158.00 30637.00 27207.00 25643.00 30337.00 25349.00 23892.00 28438.00 22918.00 21600.00 26140.00 23351.00 22009.00 26640.00 25184.00 23736.00 28683.00 25537.00 24069.00 28935.00 24847.00 23419.00 28513.00 24336.00 22936.00 27962.00 25153.00 23707.00 29014.00 23466.00 22116.00 27256.00 23491.00 22141.00 27054.00 21727.00 20478.00 25128.00 19720.00 18586.00 23170.00 19925.00 18779.00 23321.00 17827.00 16802.00 20786.00 19297.00 18188.00 22615.00 20577.00 19394.00 23947.00 19161.00 18059.00 22541.00 18724.00 17647.00 21951.00 18352.00 17296.00 21622.00 18454.00 17393.00 21831.00 19920.00 18774.00 23630.00 20832.00 19634.00 24875.00 21051.00 19840.00 25194.00 21448.00 20215.00 25637.00 08/31/03 22132.00 20856.00 26130.00 MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT COLUMBIAFUNDS.COM FOR DAILY PERFORMANCE UPDATES. Past performance is no guarantee of future 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 August 31, 1993, and reinvestment of income and capital gains distributions. The S&P 500 Index tracks the performance of 500 large-capitalization US stocks. Unlike the fund, indexes are not investments, do not incur fees, 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. 4 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- OPTIMISTIC OUTLOOK We believe the combination of reduced tax rates, lower mortgage payments and recent stock markets gains will continue to create a positive economic backdrop. While we don't rule out a setback in the coming year, we believe we will continue to see improved earnings growth from companies forming the S&P 500. And, we have the portfolio positioned for a recovering economy. SCOTT DRYSDALE, RON GIBBS, GUY POPE AND TRENT E. NEVILLS FOR THE LARGE CAP CORE INVESTMENT TEAM An investment in the fund may present certain risks, including stock market fluctuations that occur in response to economic and business developments. _____________________ 1 Lipper, Inc., a widely respected data provider in the industry, calculates an average total return for mutual funds with similar investment objectives as those of the fund. 2 Holdings are disclosed as of August 31, 2003 and are subject to change. TOP TEN HOLDINGS % of net assets August 31, 2003 Citigroup 4.9 Microsoft 3.6 General Electric 3.2 Pfizer 2.9 Bank of America 2.1 American Express 2.0 Kohl's 1.9 Johnson & Johnson 1.6 Altria Group 1.6 Target 1.6 -------------------------------- TOP FIVE SECTORS % of net assets August 31, 2003 Financials 20.6 Information technology 19.1 Consumer discretionary 19.1 Health care 13.4 Industrials 12.1 Because the fund is actively managed, there is no guarantee the fund will continue to maintain these holdings and sectors in the future.
AVERAGE ANNUAL TOTAL RETURN As of August 31, 2003 (%) CLASS A CLASS B CLASS D CLASS Z - ---------------------------------------------------------------------------------------------------------------- Inception date 11/1/02 11/1/02 11/1/02 10/1/91 - ---------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE - ---------------------------------------------------------------------------------------------------------------- 8-month (cumulative) 15.49 8.85 14.82 9.82 14.68 12.54 15.76 - ---------------------------------------------------------------------------------------------------------------- 1-year 11.06 4.68 10.28 5.28 10.21 8.10 11.40 - ---------------------------------------------------------------------------------------------------------------- 5-year 1.89 0.69 1.74 1.44 1.73 1.52 1.95 - ---------------------------------------------------------------------------------------------------------------- 10-year 8.27 7.63 8.19 8.19 8.19 8.08 8.30 - ----------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN As of June 30, 2003 (%) CLASS A CLASS B CLASS D CLASS Z - ---------------------------------------------------------------------------------------------------------------- Inception date 11/1/02 11/1/02 11/1/02 10/1/91 - ---------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE - ---------------------------------------------------------------------------------------------------------------- 8-month (cumulative) 9.07 2.80 8.47 3.47 8.47 6.39 9.36 - ---------------------------------------------------------------------------------------------------------------- 1-year -3.12 -8.71 -3.66 -8.46 -3.66 -5.57 -2.87 - ---------------------------------------------------------------------------------------------------------------- 5-year -2.55 -3.69 -2.65 -2.94 -2.65 -2.85 -2.50 - ---------------------------------------------------------------------------------------------------------------- 10-year 8.19 7.55 8.13 8.13 8.13 8.02 8.22 - ----------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions, if any. The "with sales charge" returns include the maximum 5.75% charge 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 D sales charge of 1% which also carries a CDSC of 1% that is applied to shares sold within the first year after they are purchased. Effective October 13, 2003, class D shares are closed to all new investors and new accounts. Existing class D shareholders will be able to make additional purchases at any time. In addition, class D sales charge of 1% is waived after October 13, 2003. 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. Classes A, B, and D (newer class shares) share performance information includes returns of the fund's class Z shares (the oldest existing fund class) for periods prior to the inception of the newer class shares. These class Z share returns are not restated to reflect any expense differential (e.g., Rule 12b-1 fees) between class Z shares and the newer class shares. Had the expense differential been reflected, the returns for the periods prior to the inception of classes A, B and D would have been lower. 5 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA GROWTH FUND The Board of Directors for Columbia Growth Fund approved the change of the fund's fiscal year end from December 31 to August 31. As a result, this report covers the eight-month period since the last annual report. The next report you receive will be a report for the six-month period through February 2004. For the eight-month period ended August 31, 2003, Columbia Growth Fund's class A shares returned 18.15% without sales charge. The fund did better than both the S&P 500 Index and the Lipper Large Cap Growth Funds Category average, which returned 15.95% and 17.99%, respectively. 1 The fund benefited from strong stock selection in health care and financial services, as well as above-average weightings in the top performing technology and consumer discretionary sectors. Selected energy services, technology and pharmaceutical stocks detracted slightly from the fund's returns relative to the Russell 1000 Growth Index, which returned 18.78% over the same period. STRENGTH FROM HEALTH CARE AND FINANCIAL SERVICES Health care was the biggest driver of fund performance. Top performers included Amgen, a biotechnology company whose sales exceeded expectations; Teva Pharmaceutical Industries, a generic drug company benefiting as patents on certain branded drugs expire; and St. Jude Medical, a medical device company with a strong pipeline of new products (2.8%, 1.3% and 1.0% of net assets, respectively). 2 In financial services, the fund did well by focusing on companies that would benefit from increased capital markets activity, including both Goldman Sachs Group and Citigroup (1.1% and 3.0% of net assets, respectively). GAINS FROM CYCLICAL BIAS We invested heavily in areas that would benefit from an economic recovery. In technology, we targeted semiconductor companies that are taking advantage of growing consumer interest in the wireless Internet (or WiFi) and video gaming. We also focused on companies benefiting from the rapid deployment of broadband, including eBay and Cisco Systems (1.3% and 3.0% of net assets, respectively). These themes worked well. Lexmark International, which makes printers and printer cartridges, and NVIDIA which makes chips for video games (0.4% and 0.5% of net assets, respectively) sank, however, after missing earnings expectations. We reduced our stakes in both. During the summer, we added to software and information technology services companies that stand to gain as corporations start upgrading outdated systems. We also boosted our investments in retailers Chico's FAS, Target and Kohl's (1.2%, 2.0% and 1.9% of net assets, respectively), whose stock prices rose in advance of the strong back-to-school and fall buying season. We later trimmed these positions and took profits. DISAPPOINTMENTS IN ENERGY SERVICES AND PHARMACEUTICALS We had an above-average stake in energy service stocks, expecting them to benefit from the industry's demand/supply imbalance. Instead, companies that we thought would spend more on exploration and drilling chose to use more of their cash flow to pay down debt. We do expect a more meaningful pick-up in spending, which will increase drilling activity at some point soon. As a result, we are maintaining our commitment to the area. Branded pharmaceutical companies, including Pfizer and Wyeth (5.2% and 0.9% of net assets, respectively), also produced lackluster returns despite attractive valuations. OPTIMISTIC OUTLOOK FOR ECONOMY AND STOCKS We expect the economy to improve, buoyed by fiscal and monetary stimulus here and abroad, and a return to more normal spending activities by corporations who have, up to now, largely repaired balance sheets and built up cash. Companies are enjoying improved PERFORMANCE OF A $10,000 INVESTMENT 8/31/93 - 8/31/03 WITHOUT SALES CHARGE WITH SALES CHARGE -------------------- ----------------- Class A $ 19,517 $ 18,395 Class B 19,406 19,406 Class D 19,414 19,218 Class G 19,422 19,422 Class Z 19,588 n/a --------------------------------- GROWTH OF $10,000 OVER 10 YEARS
(MOUNTAIN CHART) CLASS A SHARES CLASS A SHARES S&P 500 RUSSELL 1000 WITHOUT SALES CHARGE WITH SALES CHARGE INDEX GROWTH INDEX -------------------- ----------------- ----- ------------ 08/31/93 10000.00 $ 9425.00 $10000.00 $10000.00 10137.00 9554.00 9923.00 9926.00 10327.00 9733.00 10128.00 10202.00 10075.00 9495.00 10032.00 10134.00 10375.00 9778.00 10154.00 10308.00 10705.00 10089.00 10499.00 10547.00 10653.00 10041.00 10213.00 10354.00 10021.00 9444.00 9768.00 9854.00 10123.00 9541.00 9893.00 9899.00 10154.00 9570.00 10055.00 10050.00 9772.00 9210.00 9809.00 9752.00 10186.00 9600.00 10131.00 10086.00 10575.00 9967.00 10546.00 10648.00 10319.00 9726.00 10288.00 10504.00 10512.00 9907.00 10519.00 10751.00 10166.00 9581.00 10136.00 10406.00 10309.00 9717.00 10286.00 10580.00 10334.00 9740.00 10553.00 10807.00 10836.00 10213.00 10964.00 11260.00 11226.00 10581.00 11288.00 11588.00 11384.00 10729.00 11619.00 11842.00 11641.00 10972.00 12084.00 12254.00 12081.00 11386.00 12365.00 12727.00 12558.00 11836.00 12775.00 13257.00 12778.00 12043.00 12807.00 13271.00 13114.00 12360.00 13347.00 13883.00 12778.00 12043.00 13299.00 13893.00 13576.00 12795.00 13883.00 14433.00 13710.00 12922.00 14151.00 14516.00 13853.00 13056.00 14632.00 15000.00 14487.00 13654.00 14768.00 15275.00 14436.00 13606.00 14910.00 15295.00 14914.00 14057.00 15129.00 15697.00 15347.00 14464.00 15520.00 16245.00 15342.00 14460.00 15579.00 16268.00 14193.00 13377.00 14890.00 15314.00 14675.00 13832.00 15204.00 15709.00 15534.00 14641.00 16060.00 16853.00 15809.00 14900.00 16504.00 16954.00 16773.00 15809.00 17751.00 18227.00 16560.00 15608.00 17400.00 17870.00 17142.00 16156.00 18487.00 19123.00 17157.00 16170.00 18631.00 18993.00 16284.00 15347.00 17866.00 17965.00 17091.00 16109.00 18932.00 19158.00 18255.00 17206.00 20085.00 20541.00 19015.00 17921.00 20985.00 21363.00 20701.00 19511.00 22655.00 23252.00 19942.00 18795.00 21387.00 21891.00 20733.00 19541.00 22559.00 22968.00 20211.00 19049.00 21805.00 22119.00 20771.00 19576.00 22815.00 23059.00 20916.00 19713.00 23207.00 23317.00 21477.00 20242.00 23465.00 24014.00 23055.00 21729.00 25157.00 25820.00 24146.00 22757.00 26445.00 26850.00 24218.00 22825.00 26712.00 27221.00 23634.00 22275.00 26252.00 26448.00 25426.00 23964.00 27318.00 28066.00 25055.00 23614.00 27029.00 27881.00 20931.00 19727.00 23120.00 23696.00 21711.00 20463.00 24602.00 25516.00 22929.00 21611.00 26602.00 27567.00 24440.00 23035.00 28215.00 29665.00 27268.00 25700.00 29840.00 32341.00 28986.00 27319.00 31087.00 34239.00 28024.00 26412.00 30120.00 32675.00 29725.00 28016.00 31325.00 34397.00 29781.00 28069.00 32537.00 34441.00 29037.00 27367.00 31769.00 33384.00 31238.00 29442.00 33533.00 35721.00 30147.00 28414.00 32486.00 34585.00 29321.00 27635.00 32327.00 35149.00 28776.00 27121.00 31441.00 34411.00 30388.00 28640.00 33432.00 37009.00 31849.00 30018.00 34110.00 39007.00 34365.00 32389.00 36119.00 43064.00 33193.00 31285.00 34306.00 41044.00 35075.00 33059.00 33658.00 43051.00 38793.00 36563.00 36950.00 46134.00 37211.00 35071.00 35837.00 43938.00 34863.00 32858.00 35103.00 41723.00 37955.00 35773.00 35970.00 44886.00 37750.00 35579.00 35409.00 43014.00 40793.00 38447.00 37608.00 46907.00 37223.00 35083.00 35622.00 42469.00 35016.00 33003.00 35472.00 40461.00 30863.00 29088.00 32677.00 34497.00 31635.00 29816.00 32837.00 33407.00 33428.00 31506.00 34003.00 35715.00 28100.00 26484.00 30902.00 29651.00 25037.00 23597.00 28943.00 26425.00 28172.00 26552.00 31192.00 29767.00 27870.00 26268.00 31400.00 29330.00 27263.00 25695.00 30637.00 28649.00 26093.00 24593.00 30337.00 27933.00 23844.00 22473.00 28438.00 25648.00 21262.00 20039.00 26140.00 23088.00 22461.00 21169.00 26640.00 24301.00 24812.00 23386.00 28683.00 26636.00 24864.00 23435.00 28935.00 26585.00 23843.00 22472.00 28513.00 26115.00 22581.00 21283.00 27962.00 25031.00 23446.00 22098.00 29014.00 25897.00 21486.00 20251.00 27256.00 23784.00 21232.00 20012.00 27054.00 23208.00 19116.00 18016.00 25128.00 21062.00 17275.00 16281.00 23170.00 19903.00 17537.00 16529.00 23321.00 19963.00 15745.00 14840.00 20786.00 17893.00 17069.00 16088.00 22615.00 19533.00 17830.00 16805.00 23947.00 20594.00 16522.00 15572.00 22541.00 19171.00 16157.00 15228.00 21951.00 18705.00 16061.00 15138.00 21622.00 18619.00 16323.00 15384.00 21831.00 18965.00 17577.00 16566.00 23630.00 20367.00 18433.00 17373.00 24875.00 21383.00 18615.00 17545.00 25194.00 21678.00 19019.00 17925.00 25637.00 22218.00 08/31/03 19517.00 18395.00 26130.00 22770.00
MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT 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 August 31, 1993, and reinvestment of income and capital gains distributions. The S&P 500 Index tracks the performance of 500 widely held large-capitalization US stocks. The Russell 1000 Growth Index is an unmanaged index that measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values (the Russell 1000 Index measures the performance of the 1000 largest US companies based on total market capitalization). Unlike the fund, indices are not investments, do not incur fees, 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. 6 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- earnings, largely the result of previous cost cuts. Going forward, we expect corporations to experience an increase in sales growth that should provide more earnings growth next year and continue to support stock prices. Our strategy is to maintain our cyclical bias as long as we believe investors are underestimating the magnitude of upcoming economic and profit recoveries. Across all sectors, we will continue to look for companies with strong competitive positions and attractive valuations that seem poised for positive fundamental change and above-average earnings growth. ALEXANDER S. MACMILLAN AND PAUL J. BERLINGUET CO-PORTFOLIO MANAGERS An investment in the fund may present certain risks, including stock market fluctuations that occur in response to economic and business developments. ____________________ 1 Lipper, Inc., a widely respected data provider in the industry, calculates an average total return for mutual funds with similar investment objectives as those of the fund. 2 Holdings are disclosed as of August 31, 2003 and are subject to change. TOP TEN HOLDINGS % of net assets August 31, 2003 Pfizer 5.2 Intel 4.8 Microsoft 4.6 General Electric 4.1 Cisco Systems 3.0 Citigroup 3.0 Amgen 2.8 Wal-Mart Stores 2.6 Dell 2.1 Target 2.0 -------------------------------- TOP FIVE SECTORS % of net assets August 31, 2003 Information technology 28.7 Health care 24.1 Consumer discretionary 18.6 Consumer staples 10.1 Financials 6.7 Because the fund is actively managed, there is no guarantee the fund will continue to maintain these holdings and sectors in the future.
AVERAGE ANNUAL TOTAL RETURN As of August 31, 2003 (%) CLASS A CLASS B CLASS D CLASS G CLASS Z - ----------------------------------------------------------------------------------------------------------------------------------- Inception date 11/1/02 11/1/02 11/1/02 11/1/02 6/16/67 - ----------------------------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE - ----------------------------------------------------------------------------------------------------------------------------------- 8-month (cumulative) 18.15 11.35 17.53 12.53 17.58 15.41 17.57 12.57 18.47 - ----------------------------------------------------------------------------------------------------------------------------------- 1-year 11.31 4.90 10.67 5.67 10.72 8.64 10.76 5.76 11.71 - ----------------------------------------------------------------------------------------------------------------------------------- 5-year -1.39 -2.55 -1.50 -1.81 -1.49 -1.69 -1.48 -1.94 -1.32 - ----------------------------------------------------------------------------------------------------------------------------------- 10-year 6.92 6.28 6.85 6.85 6.86 6.75 6.86 6.86 6.95 - -----------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN As of June 30, 2003 (%) CLASS A CLASS B CLASS D CLASS G CLASS Z - ----------------------------------------------------------------------------------------------------------------------------------- Inception date 11/1/02 11/1/02 11/1/02 11/1/02 6/16/67 - ----------------------------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE - ----------------------------------------------------------------------------------------------------------------------------------- 8-month (cumulative) 9.06 2.79 8.64 3.64 8.60 6.52 8.64 3.64 9.39 - ----------------------------------------------------------------------------------------------------------------------------------- 1-year -2.61 -8.21 -2.99 -7.84 -3.03 -4.95 -2.99 -7.84 -2.32 - ----------------------------------------------------------------------------------------------------------------------------------- 5-year -6.05 -7.15 -6.12 -6.41 -6.13 -6.32 -6.12 -6.56 -5.99 - ----------------------------------------------------------------------------------------------------------------------------------- 10-year 6.86 6.23 6.82 6.82 6.81 6.71 6.82 6.82 6.89 - -----------------------------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions, if any. The "with sales charge" returns include the maximum 5.75% charge for class A shares, the appropriate class B contingent deferred sales charge (CDSC) for the holding period after purchase as follows: through the first year-5%, second year-4%, third year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the class D sales charge of 1% which also carries a CDSC of 1% 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%, fourth year-4%, fifth year-3%, sixth year-2%, seventh year-1%, thereafter-0%. Effective October 13, 2003, class D shares are closed to all new investors and new accounts. Existing class D shareholders will be able to make additional purchases at any time. In addition, class D sales charge of 1% is waived after October 13, 2003. 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. Classes A, B, D and G (newer class shares) share performance information includes returns of the fund's class Z shares (the oldest existing fund class) for periods prior to the inception of the newer class shares. These class Z share returns are not restated to reflect any expense differential (e.g., Rule 12b-1 fees) between class Z shares and the newer class shares. Had the expense differential been reflected, the returns for the periods prior to the inception of classes A, B, D and G would have been lower. 7 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA INTERNATIONAL STOCK FUND The Board of Directors for Columbia International Stock Fund approved the change of the fund's fiscal year end from December 31 to August 31. As a result, this report covers the eight-month period since the last annual report. The next report you receive will be a report for the six-month period through February 2004. For the eight-month period ended August 31, 2003, Columbia International Stock Fund class A shares returned 12.84% without sales charge. The fund trailed the MSCI All Country World Free Ex US Index, which returned 17.46% during the same period. Two factors were largely responsible for the fund's underperformance relative to its benchmark. First, the fund had a relatively small allocation to lower-quality companies, such as banks in Japan and insurance companies in Europe. While this benefited the fund early in 2003, performance suffered when these companies rebounded in the spring and summer. Second, early in the period, investments in Asia, exclusive of Japan, were negatively affected by the SARS (severe acute respiratory syndrome) epidemic, which dampened economic activity and hurt Asia's tourism industry. AN IMPROVED INVESTMENT ENVIRONMENT Over the eight-month period, the investment environment changed dramatically. At the outset, 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 declared and SARS appeared to be contained, investors began focusing on data that projected 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. While European markets made strong gains, Asian markets--particularly Thailand, Hong Kong and India--were standouts. JAPAN ACCOUNTED FOR THE BIGGEST COUNTRY COMMITMENT We became more positive about Japan where we increased our investment from 17.8% to 23.2% of net assets. For many Japanese companies, extensive restructuring over the last few years has paid off in robust profit growth, which in turn has led to attractive valuations. Dividend yields on stocks have increased, and in many cases, stocks currently yield more than bonds. Deflationary pressures have eased. And while interest rates remain low, they have moved higher. To take advantage of this improved environment, we returned to the financial sector for the first time in many years and invested in UFJ Holdings, a large Japanese bank, and Millea Holdings, an insurance company (0.7% and 1.4% of net assets, respectively). 1 We also added Nissan Motor and Matsushita Electric Industrial, which makes Panasonic brand products (0.4% and 2.0% of net assets, respectively). Among emerging markets, our biggest allocation--at 4.3% of the fund's net assets--was to Thailand. Investments in Thailand aided performance, as the country's solid political leadership and strong economic recovery attracted investor interest. The country's low interest rates have sparked an increase in consumer spending. Additionally, stock valuations remain attractive and profit growth is robust. Emphasizing the consumer area, we added Big C Supercenter, a large retailer, and Land and Houses PCL, a leading residential construction company (0.5% and 1.2% of net assets, respectively). PERFORMANCE OF A $10,000 INVESTMENT 8/31/93 - 8/31/03 WITHOUT WITH SALES CHARGE SALES CHARGE ------------ ------------ Class A $ 16,013 $ 15,088 Class B 15,858 15,858 Class D 15,914 15,753 Class Z 16,098 n/a --------------------------- GROWTH OF $10,000 OVER 10 YEARS (MOUNTAIN CHART)
MSCI ALL COUNTRY CLASS A SHARES CLASS A SHARES WORLD FREE MSCI EAFE WITHOUT SALES CHARGE WITH SALES CHARGE EX US INDEX INDEX -------------------- ----------------- ----------- ----- 08/31/93 $10000.00 $ 9425.00 $10000.00 $10000.00 9940.00 9368.00 9794.00 9775.00 10374.00 9778.00 10149.00 10076.00 10034.00 9457.00 9375.00 9195.00 11293.00 10644.00 10106.00 9859.00 11886.00 11203.00 10937.00 10692.00 11782.00 11104.00 10854.00 10663.00 11250.00 10603.00 10357.00 10203.00 11546.00 10882.00 10708.00 10636.00 11441.00 10783.00 10711.00 10575.00 11494.00 10833.00 10787.00 10724.00 11537.00 10874.00 10963.00 10827.00 11878.00 11195.00 11332.00 11084.00 11478.00 10818.00 11051.00 10734.00 11834.00 11154.00 11348.00 11092.00 11225.00 10580.00 10801.00 10558.00 11016.00 10383.00 10776.00 10625.00 10175.00 9590.00 10287.00 10217.00 9998.00 9423.00 10231.00 10187.00 10378.00 9782.00 10809.00 10823.00 10609.00 9999.00 11231.00 11230.00 10485.00 9882.00 11180.00 11096.00 10441.00 9840.00 11026.00 10902.00 11132.00 10492.00 11651.00 11581.00 10946.00 10317.00 11247.00 11140.00 11212.00 10567.00 11439.00 11357.00 11087.00 10450.00 11134.00 11052.00 11309.00 10659.00 11395.00 11359.00 11584.00 10918.00 11847.00 11817.00 11735.00 11060.00 12009.00 11865.00 11735.00 11060.00 12009.00 11906.00 12169.00 11469.00 12234.00 12158.00 12630.00 11904.00 12604.00 12512.00 12833.00 12095.00 12415.00 12282.00 13064.00 12313.00 12478.00 12350.00 12390.00 11678.00 12064.00 11990.00 12585.00 11861.00 12135.00 12016.00 12904.00 12162.00 12436.00 12336.00 12833.00 12096.00 12312.00 12210.00 13330.00 12564.00 12787.00 12696.00 13506.00 12729.00 12639.00 12532.00 13497.00 12721.00 12406.00 12093.00 13877.00 13079.00 12633.00 12292.00 14013.00 13207.00 12607.00 12336.00 14344.00 13519.00 12714.00 12401.00 15172.00 14299.00 13498.00 13209.00 15892.00 14978.00 14244.00 13937.00 16369.00 15428.00 14531.00 14162.00 15102.00 14234.00 13388.00 13104.00 16135.00 15207.00 14112.00 13838.00 15015.00 14152.00 12910.00 12774.00 14948.00 14088.00 12748.00 12644.00 15055.00 14190.00 12895.00 12754.00 15176.00 14303.00 13280.00 13337.00 15792.00 14884.00 14166.00 14193.00 16330.00 15391.00 14656.00 14630.00 16737.00 15775.00 14762.00 14746.00 16968.00 15992.00 14493.00 14673.00 17022.00 16043.00 14440.00 14785.00 17121.00 16137.00 14577.00 14934.00 14791.00 13940.00 12521.00 13084.00 14011.00 13206.00 12257.00 12682.00 15143.00 14273.00 13542.00 14004.00 16199.00 15268.00 14269.00 14721.00 16988.00 16011.00 14760.00 15301.00 17504.00 16498.00 14744.00 15255.00 17075.00 16094.00 14413.00 14892.00 17516.00 16509.00 15110.00 15513.00 18055.00 17017.00 15865.00 16141.00 17418.00 16417.00 15119.00 15310.00 18308.00 17255.00 15815.00 15907.00 19055.00 17959.00 16185.00 16379.00 19472.00 18353.00 16242.00 16440.00 19879.00 18736.00 16350.00 16606.00 20957.00 19752.00 16959.00 17228.00 23595.00 22239.00 17637.00 17826.00 26828.00 25285.00 19320.00 19427.00 25546.00 24077.00 18270.00 18193.00 27239.00 25673.00 18764.00 18683.00 26793.00 25252.00 19469.00 19408.00 24569.00 23156.00 18383.00 18387.00 22665.00 21361.00 17912.00 17938.00 23605.00 22248.00 18675.00 18640.00 22524.00 21229.00 17938.00 17859.00 23207.00 21872.00 18160.00 18014.00 21772.00 20521.00 17152.00 17137.00 20797.00 19601.00 16607.00 16732.00 19857.00 18715.00 15863.00 16105.00 20757.00 19563.00 16404.00 16677.00 20644.00 19457.00 16650.00 16668.00 19534.00 18411.00 15331.00 15418.00 18184.00 17138.00 14247.00 14390.00 19308.00 18198.00 15216.00 15390.00 19012.00 17919.00 14796.00 14847.00 18394.00 17337.00 14229.00 14239.00 17791.00 16768.00 13912.00 13980.00 17453.00 16450.00 13567.00 13626.00 15725.00 14821.00 12128.00 12246.00 16161.00 15232.00 12467.00 12560.00 16541.00 15590.00 13037.00 13023.00 16923.00 15950.00 13205.00 13100.00 16176.00 15246.00 12640.00 15426.00 16290.00 15353.00 12731.00 12491.00 17049.00 16068.00 13407.00 13226.00 17134.00 16149.00 13510.00 13253.00 17304.00 16309.00 13657.00 13421.00 16840.00 15872.00 13067.00 12887.00 15392.00 14507.00 11793.00 11615.00 15252.00 14375.00 11794.00 11588.00 13690.00 12903.00 10544.00 10344.00 14187.00 13371.00 11109.00 10899.00 14639.00 13798.00 11644.00 11394.00 14202.00 13385.00 11269.00 11011.00 13565.00 12785.00 10873.00 10552.00 13367.00 12599.00 10653.00 10310.00 13268.00 12505.00 10446.00 10108.00 14187.00 13371.00 11453.00 11099.00 14964.00 14104.00 12183.00 11772.00 15232.00 14356.00 12520.00 12056.00 15642.00 14742.00 12853.00 12348.00 08/31/03 16013.00 15088.00 13240.00 12646.00
MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT 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 August 31, 1993, and reinvestment of income and capital gains distributions. The Morgan Stanley Capital International (MSCI) AC World Free Ex US Index is an unmanaged Index representing both developed and emerging markets of 49 countries, excluding the U.S. The MSCI EAFE Index, also an unmanaged index, is a market-weighted index composed of companies representative of the market structure of 20 developed market countries in Europe, Australia, and the Far East. The MSCI EAFE Index is the former benchmark of the fund. Unlike the fund, indices are not investments, do not incur fees and are not professionally managed. Securities in the fund may not match those in an index. It is not possible to invest directly in an index. 8 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- LOOKING FORWARD TO A GLOBAL ECONOMIC RECOVERY We believe we are in a synchronous global recovery, brought about by support from leading central banks, which have lowered interest rates as part of their aggressive monetary policies. According to a recent report of the Organization for Economic Cooperation and Development (OECD), leading economic indicators for nearly all major countries stabilized in April, started to improve in May and had a sharp improvement in June. We believe these indicators are a precursor to more positive economic news in the coming months. We think the fund is well positioned to take advantage of an improving economic environment. JAMES M. MCALEAR PORTFOLIO MANAGER An investment in the fund may present certain risks, including stock market fluctuations that occur in response to economic and business developments. The fund invests in foreign securities, which have special risks, including political or economic instability and higher transaction costs; different regulations, accounting standards, trading practices and levels of information; and currency exchange rate fluctuations. ______________________ 1 Holdings are disclosed as of August 31, 2003 and are subject to change. TOP TEN HOLDINGS % of net assets August 31, 2003 Vodafone Group 2.3 Credit Suisse Group 2.2 Matsushita Electric Industrial 2.0 Mitsubishi Estate 2.0 BP PLC, ADR 1.8 Amadeus Global Travel Distribution 1.7 NTT DoCoMo 1.6 Allianz AG 1.6 BHP Billiton 1.5 Telefonica SA 1.5 ---------------------------- TOP FIVE COUNTRIES % of net assets August 31, 2003 Japan 23.2 United Kingdom 19.1 France 7.3 Spain 6.1 Switzerland 5.5 Because the fund is actively managed, there is no guarantee the fund will continue to maintain these holdings and country weightings in the future.
AVERAGE ANNUAL TOTAL RETURN As of August 31, 2003 (%) A B D Z - ----------------------------------------------------------------------------------------------------------------- Inception date 11/1/02 11/1/02 11/1/02 10/1/92 - ----------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE - ----------------------------------------------------------------------------------------------------------------- 8-month (cumulative) 12.84 6.35 12.08 7.08 12.48 10.37 13.43 - ----------------------------------------------------------------------------------------------------------------- 1-year 5.06 -0.97 4.04 -0.96 4.41 2.37 5.62 - ----------------------------------------------------------------------------------------------------------------- 5-year 1.60 0.41 1.41 1.09 1.48 1.27 1.71 - ----------------------------------------------------------------------------------------------------------------- 10-year 4.82 4.20 4.72 4.72 4.76 4.65 4.88 - -----------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN As of June 30, 2003 (%) A B D Z - ----------------------------------------------------------------------------------------------------------------- Inception date 11/1/02 11/1/02 11/1/02 10/1/92 - ----------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE - ----------------------------------------------------------------------------------------------------------------- 8-month (cumulative) 7.37 1.20 6.57 1.57 6.87 4.83 7.87 - ----------------------------------------------------------------------------------------------------------------- 1-year -9.56 -14.76 -10.23 -14.70 -9.98 -11.76 -9.14 - ----------------------------------------------------------------------------------------------------------------- 5-year -2.21 -3.36 -2.35 -2.66 -2.30 -2.50 -2.12 - ----------------------------------------------------------------------------------------------------------------- 10-year 5.24 4.63 5.16 5.16 5.19 5.09 5.29 - -----------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions, if any. The "with sales charge" returns include the maximum 5.75% charge 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 D sales charge of 1% which also carries a CDSC of 1% that is applied to shares sold within the first year after they are purchased. Effective October 13, 2003, class D shares are closed to all new investors and new accounts. Existing class D shareholders will be able to make additional purchases at any time. In addition, class D sales charge of 1% is waived after October 13, 2003. 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. Classes A, B and D (newer class shares) share performance information includes returns of the fund's class Z shares (the oldest existing fund class) for periods prior to the inception of the newer class shares. These class Z share returns are not restated to reflect any differences in expenses (e.g., Rule 12b-1 fees) between class Z shares and the newer class shares. If difference in expenses had been reflected, the returns shown for periods prior to the inception of classes A, B and D would have been lower. 9 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA MID CAP GROWTH FUND The Board of Directors for Columbia Mid Cap Growth Fund, formerly Columbia Special Fund, approved the change of the fund's fiscal year end from December 31 to August 31. As a result, this report covers the eight-month period since the last annual report. The next report you receive will be a report for the six-month period through February 2004. For the eight-month period ended August 31, 2003, Columbia Mid Cap Growth Fund class A shares returned 22.48% without sales charge. The fund underperformed the Russell MidCap Growth Index, which returned 29.75%, and the Russell MidCap Index, which returned 24.45% during the same period. The fund also underperformed its peer group, the Lipper MidCap Growth Funds Category average, which was 26.46%. 1 The fund lagged its benchmark and peer group principally because it was underweight in low-quality technology stocks, which were the period's star performers. TECHNOLOGY LED THE MARKET AND THE FUND'S PERFORMANCE Although the fund missed out on strong gains delivered by speculative technology issues early in the period, some of these low-quality issues started to cool off in the final months of the period, and the fund made up some lost ground with its higher quality technology investments. In fact, we took some profits from some of our technology holdings as valuations on technology stocks continued to move higher. Yet, we increased our technology weight by adding selectively to existing positions and by identifying new purchases that we believe have the potential to perform well going forward. Among the fund's top technology performers during the final months of the period were AU Optronics, Fairchild Semiconductor International, National Semiconductor, Symantec, and Jabil Circuit (0.7%, 0.8%, 0.5%, 0.8% and 1.0% of net assets, respectively). 2 HEALTH CARE STOCKS DID WELL, BUT FLATTENED NEAR THE PERIOD'S END Although the health care sector was relatively flat during the final months of the period, the fund's emphasis on health care stocks and strong stock selection within the sector made a positive contribution to performance during the period. Among the portfolio's best performers were Caremark Rx, a pharmacy benefits manager; Barr Laboratories, a generic drug company; and Gilead Sciences, a biotechnology company (3.2%, 2.2% and 0.9% of net assets, respectively). ENERGY AND CONSUMER STOCKS REBOUND Although both energy and consumer stocks lagged for most of the period, both sectors bounced back in August, and the fund benefited from good stock selection. In the energy sector, where the fund was overweight relative to the Russell Midcap Growth Index, we remain committed to natural gas companies. We believe these stocks stand to benefit as the longer-term outlook favors consistently higher commodity prices and increased drilling activity. The fund was slightly underweight relative to the Russell index in the consumer sector. Our investment in Univision Communications, Class A (2.5% of net assets) was an outstanding performer near the end of the period. POSITIVE OUTLOOK FOR THE ECONOMY AND THE STOCK MARKET We expect the US economy to improve in the second half of 2003 and into 2004, helped by lower interest rates and taxes. As a result, we continue to emphasize industrial, technology, telecommunications and consumer stocks within the fund--all sectors that we believe would benefit as economic growth strengthens. In choosing stocks, we remain focused on companies that we believe demonstrate the ability to generate above-average earnings and cash flow over the long term. Our goal is a PERFORMANCE OF A $10,000 INVESTMENT 8/31/93 - 8/31/03 WITHOUT SALES CHARGE WITH SALES CHARGE -------------------- ----------------- Class A $ 23,357 $ 22,014 Class B 23,214 23,214 Class D 23,214 22,982 Class G 23,214 23,214 Class T 23,395 22,050 Class Z 23,459 n/a -------------------------- GROWTH OF $10,000 OVER 10 YEARS (MOUNTAIN CHART)
CLASS A SHARES CLASS A SHARES RUSSELL MIDCAP RUSSELL MIDCAP WITHOUT SALES CHARGE WITH SALES CHARGE INDEX GROWTH INDEX -------------------- ----------------- ------------ ------------ 08/31/93 $10000.00 $ 9425.00 $10000.00 $10000.00 10124.00 9542.00 10038.00 10120.00 10129.00 9547.00 10046.00 10283.00 9863.00 9296.00 9813.00 10043.00 10484.00 9881.00 10168.00 10446.00 10909.00 10281.00 10449.00 10715.00 10946.00 10316.00 10307.00 10622.00 10526.00 9921.00 9868.00 10122.00 10591.00 9982.00 9936.00 10098.00 10484.00 9881.00 9950.00 10113.00 10113.00 9531.00 9655.00 9678.00 10301.00 9708.00 9986.00 9946.00 10752.00 10134.00 10460.00 10539.00 10725.00 10108.00 10204.00 10365.00 11000.00 10367.00 10282.00 10544.00 10521.00 9916.00 9829.00 10079.00 10723.00 10107.00 9956.00 10220.00 10614.00 10003.00 10160.00 10343.00 10981.00 10350.00 10687.00 10893.00 11273.00 10625.00 10992.00 11326.00 11308.00 10658.00 11158.00 11421.00 11440.00 10782.00 11526.00 11702.00 12169.00 11469.00 11913.00 12234.00 13093.00 12340.00 12492.00 13004.00 13311.00 12546.00 12683.00 13147.00 13523.00 12745.00 12969.00 13440.00 12960.00 12215.00 12679.00 13100.00 13660.00 12875.00 13309.00 13686.00 13888.00 13090.00 13386.00 13693.00 13784.00 12992.00 13669.00 13935.00 14399.00 13571.00 13990.00 14462.00 14749.00 13901.00 14193.00 14576.00 16038.00 15116.00 14594.00 15280.00 16492.00 15544.00 14815.00 15592.00 15547.00 14653.00 14593.00 15121.00 14025.00 13218.00 13689.00 13947.00 14880.00 14025.00 14341.00 14702.00 15456.00 14567.00 15049.00 15635.00 15022.00 14158.00 15170.00 15453.00 15857.00 14945.00 16094.00 16363.00 15703.00 14800.00 15929.00 16088.00 16075.00 15151.00 16525.00 16799.00 15823.00 14913.00 16500.00 16429.00 15056.00 14190.00 15799.00 15501.00 14944.00 14085.00 16193.00 15881.00 16344.00 15405.00 17375.00 17304.00 16874.00 15904.00 17943.00 17783.00 17824.00 16799.00 19439.00 19485.00 17769.00 16747.00 19227.00 19294.00 18631.00 17559.00 20325.00 20270.00 17546.00 16537.00 19535.00 19255.00 17729.00 16709.00 19999.00 19457.00 17690.00 16673.00 20551.00 19712.00 17217.00 16227.00 20165.00 19357.00 18318.00 17264.00 21742.00 21176.00 19479.00 18359.00 22773.00 22064.00 19419.00 18302.00 22830.00 22364.00 18912.00 17824.00 22124.00 21445.00 19218.00 18113.00 22432.00 22052.00 17907.00 16878.00 21362.00 21108.00 15664.00 14763.00 17944.00 17078.00 16755.00 15792.00 19105.00 18369.00 17454.00 16451.00 20408.00 19721.00 18257.00 17207.00 21373.00 21053.00 20634.00 19448.00 22625.00 23234.00 20215.00 19053.00 22587.00 23931.00 18547.00 17481.00 21835.00 22760.00 19072.00 17976.00 22518.00 24028.00 19692.00 18560.00 24182.00 25124.00 19745.00 18610.00 24112.00 24800.00 21126.00 19911.00 24963.00 26531.00 20574.00 19391.00 24277.00 25687.00 20189.00 19029.00 23648.00 25420.00 20468.00 19291.00 22816.00 25204.00 21700.00 20452.00 23897.00 27152.00 24382.00 22980.00 24585.00 29965.00 28130.00 26512.00 26749.00 35155.00 28608.00 26963.00 25864.00 35148.00 36767.00 34653.00 27852.00 42536.00 36175.00 34095.00 29448.00 42579.00 32641.00 30764.00 28055.00 38444.00 30855.00 29081.00 27312.00 35642.00 34277.00 32306.00 28120.00 39423.00 32923.00 31030.00 27805.00 36928.00 37529.00 35371.00 30469.00 42497.00 36741.00 34629.00 30034.00 40419.00 34177.00 32212.00 29571.00 37654.00 29225.00 27544.00 26910.00 29472.00 32027.00 30186.00 28957.00 31025.00 31473.00 29663.00 29424.00 32796.00 27936.00 26329.00 27632.00 27123.00 25533.00 24065.00 25919.00 23241.00 27974.00 26366.00 28135.00 27116.00 27518.00 25936.00 28658.00 26988.00 27012.00 25459.00 28389.00 27002.00 26026.00 24529.00 27577.00 25182.00 24548.00 23136.00 26515.00 23356.00 21774.00 20522.00 23317.00 19495.00 22562.00 21265.00 24241.00 21544.00 24410.00 23006.00 26272.00 23865.00 25306.00 23850.00 27328.00 24772.00 24453.00 23047.00 27164.00 23966.00 23355.00 22012.00 26876.00 22608.00 24735.00 23313.00 28489.00 24332.00 24102.00 22716.00 27936.00 23045.00 23714.00 22350.00 27620.00 22359.00 22075.00 20806.00 25770.00 19890.00 20384.00 19212.00 23255.00 17957.00 19907.00 18763.00 23383.00 17894.00 19029.00 17935.00 21224.00 16473.00 19558.00 18434.00 22296.00 17750.00 20114.00 18957.00 23844.00 19140.00 19068.00 17971.00 22904.00 17984.00 19068.00 17971.00 22441.00 17807.00 18629.00 17558.00 22145.00 17653.00 18745.00 17667.00 22364.00 17981.00 19688.00 18556.00 23988.00 19205.00 21379.00 20150.00 26183.00 21053.00 21727.00 20478.00 26447.00 21354.00 22192.00 20916.00 27320.00 22116.00 08/31/03 23357.00 22014.00 28506.00 23332.00
MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT 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 August 31, 1993, and reinvestment of income and capital gains distributions. The Russell MidCap Index is an unmanaged index that measures the performance of the 800 smallest companies in the Russell 1000 Index, which represent approximately 24% of the total market capitalization of the Russell 1000 Index. The Russell MidCap Growth Index is an unmanaged index that measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values. Unlike the fund, indices are not investments, do not incur fees, and are not professionally managed. It is not possible to invest directly in an index. Securities in this fund may not match those in an index. 10 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- carefully constructed portfolio of mid-cap growth stocks highly diversified across market sectors. RICHARD J. JOHNSON PORTFOLIO MANAGER An investment in the fund may present certain risks, including stock market fluctuations that occur in response to economic and business developments. Stocks of small-and mid-cap companies may trade less frequently, may trade in smaller volumes and may fluctuate more sharply in price than stocks of larger companies. ______________________ 1 Lipper Inc., a widely respected data provider in the industry, calculates an average total return for mutual funds with similar investment objectives as those of the fund. 2 Holdings are disclosed as of August 31, 2003 and are subject to change. TOP TEN HOLDINGS % of net assets August 31, 2003 Caremark Rx 3.2 WellPoint Health Networks 2.5 Univision Communications, Class A 2.5 Electronic Arts 2.2 Barr Laboratories 2.2 Microchip Technology 1.7 BJ Services 1.7 UnitedHealth Group 1.7 VERITAS Software 1.6 Amdocs 1.6 ------------------------- TOP FIVE SECTORS % of net assets August 31, 2003 Information technology 29.1 Health care 23.1 Consumer discretionary 19.1 Industrials 13.7 Energy 7.8 Because the fund is actively managed, there is no guarantee the fund will continue to maintain these holdings and sectors in the future.
AVERAGE ANNUAL TOTAL RETURN As of August 31, 2003 (%) CLASS A CLASS B CLASS D CLASS G CLASS T CLASS Z - ----------------------------------------------------------------------------------------------------------------- Inception date 11/1/02 11/1/02 11/1/02 11/1/02 11/1/02 11/20/85 - ----------------------------------------------------------------------------------------------------------------- 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 - ----------------------------------------------------------------------------------------------------------------- 8-month (cumulative) 22.48 15.44 21.82 16.82 21.82 19.61 21.73 16.73 22.52 15.49 22.85 - ----------------------------------------------------------------------------------------------------------------- 1-year 17.32 10.57 16.60 11.60 16.60 14.41 16.60 11.60 17.51 10.76 17.83 - ----------------------------------------------------------------------------------------------------------------- 5-year 8.32 7.05 8.18 7.89 8.18 7.97 8.18 7.74 8.35 7.08 8.41 - ----------------------------------------------------------------------------------------------------------------- 10-year 8.85 8.21 8.79 8.79 8.79 8.68 8.79 8.79 8.87 8.23 8.90 - -----------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN As of June 30, 2003 (%) CLASS A CLASS B CLASS D CLASS G CLASS T CLASS Z - ----------------------------------------------------------------------------------------------------------------- Inception date 11/1/02 11/1/02 11/1/02 11/1/02 11/1/02 11/20/85 - ----------------------------------------------------------------------------------------------------------------- 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 - ----------------------------------------------------------------------------------------------------------------- 8-month (cumulative) 11.09 4.70 10.63 5.63 10.56 8.47 10.56 5.56 11.29 4.92 11.49 - ----------------------------------------------------------------------------------------------------------------- 1-year -1.58 -7.22 -1.99 -6.89 -2.05 -3.98 -2.05 -6.94 -1.40 -7.06 -1.23 - ----------------------------------------------------------------------------------------------------------------- 5-year 2.49 1.28 2.40 2.12 2.39 2.18 2.39 1.97 2.52 1.32 2.56 - ----------------------------------------------------------------------------------------------------------------- 10-year 8.81 8.16 8.76 8.76 8.75 8.64 8.75 8.75 8.82 8.18 8.84 - -----------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions, if any. The "with sales charge" returns include the maximum 5.75% charge 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 D sales charge of 1% which also carries a CDSC of 1% 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%, fourth year-4%, fifth year-3%, sixth year-2%, seventh year-1%, thereafter-0%. For class T shares, the "with sales charge" returns include the maximum 5.75% charge. Effective October 13, 2003, class D shares are closed to all new investors and new accounts. Existing class D shareholders will be able to make additional purchases at any time. In addition, class D sales charge of 1% is waived after October 13, 2003. 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. Classes A, B, D, G and T (newer class shares) share performance information includes returns of the fund's class Z shares (the oldest existing fund class) for periods prior to the inception of the newer class shares. These class Z share returns are not restated to reflect any expense differential (e.g., Rule 12b-1 fees) between class Z shares and the newer class shares. Had the expense differential been reflected, the returns for the periods prior to the inception of classes A, B, D, G and T would have been lower. 11 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA SMALL CAP GROWTH FUND The Board of Directors for Columbia Small Cap Growth Fund, formerly Columbia Small Cap Fund, approved the change of the fund's fiscal year end from December 31 to August 31. As a result, this report covers the eight-month period since the last annual report. The next report you receive will be a report for the six-month period through February 2004. For the eight-month period ended August 31, 2003, Columbia Small Cap Growth Fund class Z shares returned 32.64% without sales charge. This return was lower than the Russell 2000 Growth Index, which returned 35.25% during the same period. However, it was higher than the Lipper Small-Cap Growth Funds Category average, which was 31.39%. 1 The fund also performed better than the Russell 2000 Index, an index less closely aligned with the fund's emphasis on growth stocks than the Russell 2000 Growth Index or its peer group. The Russell 2000 Index had a total return of 31.00%. The fund's strong returns were driven largely by information technology and health care stocks. It slightly lagged its growth benchmark because it was underweight in lower-quality technology names, which posted strong gains. An overweight in energy stocks hurt performance, but the fund's energy holdings rebounded late in the period. STRONG GAINS FOR SMALL-CAP STOCKS Stocks were weak early in the eight-month period, as fears about the economy and impending war eroded investor confidence. However, a swift end to the major military campaign in Iraq, a solid increase in corporate profits, and economic stimulus in the form of lower interest and tax rates helped fuel a broad stock market rally that commenced in May. Small-cap stocks did even better than large-cap stocks because investors believed these stocks stood to gain more in an improving economic environment. TECHNOLOGY AND HEALTH CARE STOCKS WERE TOP PERFORMERS During the period, the fund's strongest gains came from technology and health care. The fund's underweight in lower-quality technology stocks hurt relative performance in the early stage of the stock market rally, because lower-quality technology stocks bounced back strongly. However, we maintained our emphasis on high-quality stocks and increased our technology weight to 33.5% of net assets by the end of the period. We believe this combination of a higher technology weight and an emphasis on quality has the potential to generate the most attractive returns for shareholders over the long term. Our investments in Amdocs and Macromedia (0.6% and 1.6% of net assets, respectively) 2 were among the top technology contributors to performance for the period. We experienced disappointing returns from webMethods (0.5% of net assets) and also from Acxiom, which was sold from the portfolio during the period. Health care investments also generated strong gains, although they flattened out somewhat at the end of the period. Top health care performers for the fund included Caremark Rx and Mid Atlantic Medical Services (1.3% and 1.4% of net assets, respectively). We were disappointed by returns from ANDRX and Coventry Health Care (0.7% and 1.0% of net assets, respectively) but maintained our positions in the stocks. ENERGY STOCKS MOVED IN AND OUT OF FAVOR Early in the period, the fund benefited from a significant overweight in energy, aided by strong performance from Premcor, one of the largest independent petroleum refiners in the United States (0.8% of net assets). This overweight hurt the fund in the early summer months as energy stocks underperformed. The summer is typically weak for the sector, and it was even weaker this year as investors were attracted to riskier segments of the stock market. When energy rebounded in August, we were rewarded for PERFORMANCE OF A $10,000 INVESTMENT 10/1/96 - 08/31/03 WITHOUT SALES CHARGE ------------ Class Z $ 21,273 ------------------------------------ GROWTH OF $10,000 SINCE INCEPTION (MOUNTAIN CHART) CLASS Z SHARES RUSSELL 2000 RUSSELL 2000 WITHOUT SALES CHARGE INDEX GROWTH INDEX -------------------- ----------- ------------ 10/01/96 $10000.00 $10000.00 $10000.00 10174.00 9876.00 9628.00 10488.00 10283.00 9896.00 10762.00 10552.00 10089.00 11508.00 10763.00 10341.00 10820.00 10503.00 9716.00 10224.00 10007.00 9030.00 10191.00 10035.00 8926.00 11475.00 11151.00 10267.00 12245.00 11629.00 10615.00 13098.00 12170.00 11159.00 13753.00 12449.00 11493.00 15021.00 13360.00 12411.00 14449.00 12774.00 11665.00 14201.00 12691.00 11387.00 14432.00 12913.00 11394.00 13817.00 12709.00 11242.00 14953.00 13648.00 12235.00 16261.00 14210.00 12748.00 16435.00 14288.00 12825.00 15247.00 13518.00 11893.00 15715.00 13547.00 12014.00 14978.00 12449.00 11011.00 11771.00 10032.00 8470.00 12854.00 10817.00 9329.00 12984.00 11258.00 9816.00 13720.00 11848.00 10577.00 15109.00 12582.00 11534.00 15030.00 12749.00 12054.00 13452.00 11716.00 10951.00 13678.00 11899.00 11340.00 14077.00 12965.00 12342.00 14381.00 13155.00 12362.00 15682.00 13749.00 13013.00 16089.00 13373.00 12611.00 15726.00 12878.00 12139.00 16002.00 12880.00 12374.00 17555.00 12933.00 12690.00 19965.00 13705.00 14032.00 24048.00 15257.00 16505.00 24250.00 15011.00 16352.00 30795.00 17489.00 20157.00 29560.00 16337.00 18039.00 26350.00 15353.00 16217.00 24885.00 14458.00 14796.00 28386.00 15719.00 16708.00 26206.00 15213.00 15276.00 29285.00 16374.00 16883.00 28067.00 15892.00 16044.00 26663.00 15183.00 14741.00 23453.00 13624.00 12064.00 25451.00 14794.00 12802.00 25767.00 15565.00 13838.00 22982.00 14544.00 11941.00 20994.00 13833.00 10856.00 23433.00 14915.00 12184.00 23600.00 15282.00 12467.00 23984.00 15809.00 12807.00 22785.00 14954.00 11715.00 21092.00 14471.00 10983.00 17835.00 12523.00 9210.00 19105.00 13255.00 10096.00 20452.00 14281.00 10939.00 21839.00 15163.00 11621.00 21249.00 15005.00 11207.00 20197.00 14594.00 10482.00 21535.00 15766.00 11393.00 20856.00 15909.00 11147.00 20089.00 15203.00 10494.00 18741.00 14449.00 9605.00 16203.00 12267.00 8128.00 16459.00 12236.00 8124.00 15751.00 11358.00 7538.00 16027.00 11722.00 7919.00 16942.00 12768.00 8704.00 16038.00 12057.00 8103.00 15988.00 11723.00 7883.00 15742.00 11369.00 7672.00 16056.00 11515.00 7788.00 17346.00 12607.00 8525.00 18950.00 13960.00 9486.00 19422.00 14212.00 9669.00 20141.00 15102.00 10400.00 08/31/03 21273.00 15794.00 10958.00 MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT 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, 1996, and reinvestment of income and capital gains distributions. The Russell 2000 Index is an unmanaged market capitalization weighted index that tracks the performance of 2000 small companies. The Russell 2000 Growth Index, also an unmanaged index, measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values. Unlike the fund, indices are not investments, do not incur fees and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those of the index. Index performance is from October 1, 1996. 12 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- maintaining our emphasis on the sector. We believe the industry is in the midst of an up cycle, especially for natural gas. Within energy, we have focused on drilling companies, which are likely beneficiaries of greater investments in the energy infrastructure. We have also invested in energy producers, such as Chesapeake Energy and XTO Energy (0.7% and 1.1% of net assets, respectively). A FAVORABLE ENVIRONMENT FOR STOCKS The fund's positioning reflects our outlook for a stronger economy later in 2003 and into 2004. We continue to overweight technology, energy and health care, where we expect earnings growth to remain positive. Within technology, we continue to focus on companies that are generating visible earnings that can support rising valuations and avoiding those companies whose valuations have moved to extraordinarily high levels. We believe that our research can help us identify companies with reasonable prices and strong growth prospects, and we are monitoring our technology holdings for signs that the market may be pricing in a more accelerated recovery than the companies can deliver. RICHARD J. JOHNSON PORTFOLIO MANAGER An investment in the fund may present certain risks, including stock market fluctuations that occur in response to economic and business developments. Stocks of small-cap companies may trade less frequently, may trade in smaller volumes and may fluctuate more sharply in price than stocks of larger companies. A concentration of investments in a specific sector, such as technology, may cause a fund to experience increased volatility. _____________________ 1 Lipper Inc., a widely respected data provider in the industry, calculates an average total return for mutual funds with similar investment objectives as those of the fund. 2 Holdings are disclosed as of August 31, 2003 and are subject to change. TOP TEN HOLDINGS % of net assets August 31, 2003 Amphenol, Class A 2.8 Education Management 2.0 Harman International Industries 1.6 Macromedia 1.6 DaVita 1.5 Fair Isaac 1.5 First Health Group 1.5 Henry Schein 1.4 Mid Atlantic Medical Services 1.4 Entercom Communications 1.4 ---------------------------- TOP FIVE SECTORS % of net assets August 31, 2003 Information technology 33.5 Health care 19.2 Consumer discretionary 18.5 Industrials 10.1 Energy 8.9 Because the fund is actively managed, there is no guarantee the fund will continue to maintain these holdings and sectors in the future. AVERAGE ANNUAL TOTAL RETURN As of August 31, 2003 (%) Class Z - ------------------------------------------------------- Inception date 10/1/96 - ------------------------------------------------------- WITHOUT SALES CHARGE - ------------------------------------------------------- 8-month (cumulative) 32.64 - ------------------------------------------------------- 1-year 29.23 - ------------------------------------------------------- 5-year 12.56 - ------------------------------------------------------- Life 11.53 - ------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN As of June 30, 2003 (%) Class Z - ------------------------------------------------------- Inception date 10/1/96 - ------------------------------------------------------- WITHOUT SALES CHARGE - ------------------------------------------------------- 8-month (cumulative) 21.18 - ------------------------------------------------------- 1-year 3.62 - ------------------------------------------------------- 5-year 4.33 - ------------------------------------------------------- Life 10.34 - ------------------------------------------------------- Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions, if any. 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. 13 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA REAL ESTATE EQUITY FUND The Board of Directors for Columbia Real Estate Equity Fund approved the change of the fund's fiscal year end from December 31 to August 31. As a result, this report covers the eight-month period since the last annual report. The next report you receive will be a report for the six-month period through February 2004. For the eight-month period ended August 31, 2003, Columbia Real Estate Equity Fund class A shares returned 19.62% without sales charge. The NAREIT Index, a common measure of real estate securities performance, returned 20.61%. An overweight allocation to forest products companies, which was made late in 2002 in anticipation of more rapid improvement in the economy, was the primary reason the fund fell short of its benchmark during the period. The fund's relatively high cash position also detracted somewhat from performance. UNDERLYING BUSINESS CONDITIONS WEAK With sluggish job growth, the average vacancy rates in major metropolitan office markets are significantly higher than the historical average. And, few industry participants expect much improvement in office company earnings before the end of 2004. Similarly, apartment vacancy rates have increased. As a result of these factors, we have maintained an underweight position in both office and apartment companies. By contrast, more cyclically-oriented sectors of the real estate markets, including higher-quality regional malls, shopping centers and industrial and lodging companies, in which we maintained overweight positions, were solid performers. ADJUSTING TO STRETCHED REAL ESTATE VALUATIONS Real estate investment trusts (REIT) have continued to attract inflows of investor capital and, in many cases these inflows have driven up prices. Many investors seem to expect future growth that we believe is not justified by the industry's business prospects over the next year. To reflect our concerns over what we believe to be stretched real estate valuations, we have adopted a more defensive position for the portfolio. We increased the fund's cash position, and late in the period we allocated approximately 11% of the fund's holdings to the basic materials sector, which includes forest, paper products and container companies. (The fund's investment strategy permits us to hold 20% of its assets in non-real-estate related companies.) We focused on cyclically-oriented forest products companies because they typically perform well in the early stages of an economic recovery. They became attractive late in 2002 due to their compelling valuations and stable cash flows. They underperformed during the first six months of the year. However, in mid-June the materials sector rallied when investors became optimistic about an economic recovery. In July and August, these companies outperformed the NAREIT Index, confirming the value of our strategy. However, the move occurred too late in the period to have a significant positive impact on the fund's overall return. PERFORMANCE OF A $10,000 INVESTMENT 4/1/94 - 8/31/03 WITHOUT SALES CHARGE WITH SALES CHARGE -------------------- ----------------- Class A $ 29,346 $ 27,664 Class B 29,182 29,182 Class D 29,187 28,898 Class Z 29,483 n/a -------------------------- GROWTH OF $10,000 SINCE INCEPTION (MOUNTAIN CHART) CLASS A SHARES CLASS A SHARES WITHOUT SALES CHARGE WITH SALES CHARGE NAREIT INDEX -------------------- ----------------- ------------ 04/01/94 $10000.00 $ 9425.00 $10000.00 10017.00 9441.00 10170.00 10326.00 9732.00 10397.00 10135.00 9552.00 10185.00 9966.00 9393.00 10135.00 10118.00 9536.00 10165.00 9908.00 9339.00 9976.00 9610.00 9057.00 9630.00 9253.00 8721.00 9299.00 10177.00 9592.00 9977.00 9803.00 9240.00 9760.00 9899.00 9329.00 10001.00 9968.00 9395.00 9961.00 9818.00 9254.00 9958.00 10303.00 9711.00 10381.00 10562.00 9955.00 10546.00 10724.00 10107.00 10728.00 10795.00 10175.00 10856.00 11065.00 10429.00 11042.00 10820.00 10197.00 10806.00 10910.00 10283.00 10904.00 11894.00 11210.00 11500.00 12118.00 11422.00 11689.00 12221.00 11519.00 11826.00 12147.00 11448.00 11761.00 12137.00 11439.00 11821.00 12413.00 11699.00 12126.00 12707.00 11976.00 12284.00 12726.00 11994.00 12376.00 13342.00 12575.00 12863.00 13901.00 13101.00 13087.00 14173.00 13358.00 13476.00 14903.00 14046.00 14090.00 16449.00 15503.00 15554.00 16774.00 15810.00 15728.00 16877.00 15906.00 15697.00 17108.00 16124.00 15664.00 16523.00 15573.00 15233.00 17046.00 16066.00 15681.00 17819.00 16794.00 16443.00 18752.00 17674.00 16951.00 18565.00 17497.00 16911.00 20225.00 19062.00 18387.00 19533.00 18410.00 17891.00 20025.00 18874.00 18277.00 20518.00 19338.00 18708.00 20442.00 19266.00 18609.00 20060.00 18906.00 18293.00 20736.00 19543.00 18620.00 19836.00 18695.00 18013.00 19681.00 18549.00 17887.00 19626.00 18497.00 17766.00 18470.00 17408.00 16613.00 17114.00 16130.00 15044.00 18002.00 16967.00 15896.00 17698.00 16680.00 15602.00 18057.00 17019.00 15831.00 17983.00 16949.00 15432.00 17663.00 16648.00 15110.00 17538.00 16529.00 14755.00 17434.00 16432.00 14688.00 18876.00 17791.00 16082.00 19442.00 18325.00 16436.00 19003.00 17910.00 16170.00 18302.00 17250.00 15655.00 18291.00 17239.00 15457.00 17473.00 16469.00 14869.00 17119.00 16134.00 14503.00 16977.00 16000.00 14267.00 17540.00 16532.00 14719.00 17612.00 16599.00 14768.00 17179.00 16191.00 14592.00 18070.00 17031.00 15072.00 19155.00 18053.00 16085.00 19314.00 18203.00 16243.00 20032.00 18880.00 16660.00 21757.00 20506.00 18116.00 20895.00 19694.00 17381.00 21758.00 20507.00 17933.00 20723.00 19531.00 17157.00 21334.00 20107.00 17377.00 22601.00 21301.00 18600.00 22386.00 21099.00 18793.00 22071.00 20802.00 18493.00 21691.00 20444.00 18672.00 22457.00 21166.00 19118.00 22942.00 21623.00 19581.00 23938.00 22561.00 20728.00 23514.00 22162.00 20316.00 24259.00 22864.00 21059.00 22728.00 21422.00 20185.00 21958.00 20695.00 19608.00 23223.00 21887.00 20687.00 23822.00 22452.00 21191.00 23967.00 22589.00 21234.00 24442.00 23036.00 21643.00 25366.00 23907.00 22942.00 25551.00 24082.00 23137.00 26057.00 24558.00 23449.00 26429.00 24910.00 24090.00 25060.00 23619.00 22830.00 24805.00 23378.00 22784.00 23825.00 22455.00 21909.00 23117.00 21788.00 20855.00 24299.00 22901.00 21838.00 24527.00 23117.00 21999.00 23865.00 22493.00 21359.00 24139.00 22751.00 21711.00 24557.00 23145.00 22146.00 25581.00 24110.00 23120.00 26827.00 25284.00 24517.00 27414.00 25838.00 25051.00 28766.00 27112.00 26391.00 08/31/03 29346.00 27664.00 26539.00 MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT 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 April 1, 1994, and reinvestment of income and capital gains distributions. The National Association of Real Estate Investment Trusts (NAREIT) Index is an unmanaged index that tracks performance of all publicly traded equity REIT. Unlike the fund, indices are not investments, do not incur fees, and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. Index performance is from April 1, 1994. 14 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- RISKS RISE FOR REIT Strong performance by REIT during the year largely has been the result of investors seeking higher yields than they can get from alternative fixed income investments. Although we believe that the business conditions underlying the REIT markets likely have bottomed, real estate stocks have become pricey from a historical perspective. Risk has been rising; therefore, we have taken steps to diversify the portfolio to protect shareholder capital. Yet, we believe the fund is well positioned to benefit from economic recovery over the longer term. DAVID W. JELLISON PORTFOLIO MANAGER An investment in the fund may present certain risks, including stock market fluctuations that occur in response to economic and business developments. The fund may be subject to the same types of risks associated with direct ownership of real estate including the decline of property value due to general, local and regional economic conditions. In addition, the fund's share price will likely be subject to more volatility than the overall stock market because it concentrates in real estate stocks. TOP TEN HOLDINGS % of net assets August 31, 2003 Cousins Properties 5.2 Simon Property Group 4.9 General Growth Properties 4.7 iStar Financial 4.6 ProLogis Trust 4.3 Bowater 4.0 Kimco Realty 3.4 Rouse 3.4 Alexandria Real Estate Equities 3.4 Regency Centers 3.2 ------------------------------ TOP FIVE SECTORS % of net assets August 31, 2003 Real estate 77.8 Paper & forest products 8.7 Other 5.8 Hotels, restaurants & leisure 5.4 Containers & packaging 2.3 Because the fund is actively managed, there is no guarantee the fund will continue to maintain these holdings and sectors in the future.
AVERAGE ANNUAL TOTAL RETURN As of August 31, 2003 (%) CLASS A CLASS B CLASS D CLASS Z - ------------------------------------------------------------------------------------------------------------ Inception date 11/1/02 11/1/02 11/1/02 4/1/94 - ------------------------------------------------------------------------------------------------------------ WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES charge SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE - ------------------------------------------------------------------------------------------------------------ 8-month (cumulative) 19.62 12.74 18.97 13.97 18.99 16.81 20.01 - ------------------------------------------------------------------------------------------------------------ 1-year 18.29 11.47 17.63 12.63 17.65 15.46 18.84 - ------------------------------------------------------------------------------------------------------------ 5-year 11.39 10.08 11.27 11.00 11.27 11.04 11.49 - ------------------------------------------------------------------------------------------------------------ Life 12.11 11.41 12.05 12.05 12.05 11.93 12.17 - ------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN As of June 30, 2003 (%) CLASS A CLASS B CLASS D CLASS Z - ------------------------------------------------------------------------------------------------------------ Inception date 11/1/02 11/1/02 11/1/02 4/1/94 - ------------------------------------------------------------------------------------------------------------ WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES charge SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE - ------------------------------------------------------------------------------------------------------------ 8-month (cumulative) 18.60 11.78 18.11 13.11 18.13 15.97 19.10 - ------------------------------------------------------------------------------------------------------------ 1-year 3.73 -2.23 3.31 -1.69 3.33 1.30 4.17 - ------------------------------------------------------------------------------------------------------------ 5-year 6.92 5.66 6.83 6.52 6.84 6.62 7.01 - ------------------------------------------------------------------------------------------------------------ Life 11.53 10.82 11.48 11.48 11.48 11.36 11.58 - ------------------------------------------------------------------------------------------------------------
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 assume reinvestment of distributions, if any. The "with sales charge" returns include the maximum 5.75% charge for class A shares, the appropriate class B contingent deferred sales charge (CDSC) for the holding period after purchase as follows: through the first year-5%, second year-4%, third year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the class D sales charge of 1% which also carries a CDSC of 1% that is applied to shares sold within the first year after they are purchased. Effective October 13, 2003, class D shares are closed to all new investors and new accounts. Existing class D shareholders will be able to make additional purchases at any time. In addition, class D sales charge of 1% is waived after October 13, 2003. 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. Classes A, B, and D (newer class shares) share performance information includes returns of the fund's class Z shares (the oldest existing fund class) for periods prior to the inception of the newer class shares. These class Z share returns are not restated to reflect any expense differential (e.g., Rule 12b-1 fees) between class Z shares and the newer class shares. Had the expense differential been reflected, the returns for the periods prior to the inception of classes A, B and D would have been lower. 15 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA TECHNOLOGY FUND The Board of Directors for Columbia Technology Fund approved the change of the fund's fiscal year end from December 31 to August 31. As a result, this report covers the eight-month period since the last annual report. The next report you receive will be a report for the six-month period through February 2004. TECHNOLOGY STOCKS BACK IN FAVOR For the eight months ended August 31, 2003, Columbia Technology Fund class A shares returned 55.94% without sales charge. The fund outperformed the Merrill Lynch 100 Technology Index, which returned 50.92% for the same period. The fund's aggressive positioning and emphasis on semiconductors and the Internet accounted for its superior relative returns. Early in the year, the anticipation of war in Iraq had a chilling effect on the stock market in an economy already slowed by an overly cold winter and a relatively strong dollar. (A strong dollar can be a problem for companies that sell their products in multinational markets.) But the cold wore off, military victory was declared, the dollar weakened and stocks began to rise. Many of the stocks that had been beaten down hardest bounced back the strongest as investors were attracted to their low valuations and the prospects of a strengthening economy. Among sectors, technology was the strongest performer for the eight-month period. BROADBAND GROWTH FUELED TECH SECTOR The accelerating growth of broadband Internet access was a key factor in the technology rally. As faster service has become available to more customers, Internet usage has increased. And although weaker Internet companies were driven out of business after the technology bubble burst in 2000, many of the companies that survived have prospered. For example, E-Loan rose sharply as on-line customers discovered the convenience of this one-stop shopping emporium for loans, mortgages and home equity credit lines. We took profits and sold our position in the stock. We also invested in companies that supply and support the infrastructure for high speed Internet transmission and networking systems, such as PMC-Sierra. We pared back our position in PMC-Sierra to 1.7% of net assets,1 collecting gains on the shares we sold. We initiated positions in American Tower, Class A and Crown Castle International (1.1% and 1.2% of net assets, respectively), two companies which own and operate communications and radio towers in the US and the UK, as well as in the fast growing markets of Brazil and Mexico. STRONG RETURNS FROM BIOTECH, INTERNATIONAL INVESTMENTS Biotechnology companies also rebounded during the period. We sold our position in Gilead Sciences when it reached our price target and added Onyx Pharmaceuticals (0.7% of net assets), a company that is developing drugs that block tumor cell growth. Outside the United States, we posted strong returns from Vimpel-Communications (1.4% of net assets), the number one mobile phone service provider in Russia. PERFORMANCE OF A $10,000 INVESTMENT 11/9/00 - 8/31/03 WITHOUT SALES CHARGE WITH SALES CHARGE -------------------- ----------------- Class A $ 5,904 $ 5,566 Class B 5,854 5,679 Class D 5,874 5,816 Class Z 5,924 n/a -------------------- GROWTH OF $10,000 SINCE INCEPTION (MOUNTAIN CHART) CLASS A SHARES CLASS A SHARES MERRILL LYNCH 100 WITHOUT SALES CHARGE WITH SALES CHARGE TECHNOLOGY INDEX -------------------- ----------------- ---------------- 11/09/00 $10000.00 $ 9425.00 $10000.00 8713.00 8212.00 7744.00 8622.00 8127.00 7317.00 9142.00 8617.00 8577.00 6815.00 6423.00 6096.00 6145.00 5792.00 5123.00 7365.00 6941.00 6259.00 7135.00 6725.00 5891.00 7285.00 6866.00 5912.00 6745.00 6357.00 5377.00 6095.00 5745.00 4719.00 4547.00 4285.00 3495.00 5166.00 4869.00 4158.00 5896.00 5557.00 4944.00 6126.00 5773.00 4935.00 6086.00 5736.00 4962.00 5367.00 5058.00 4289.00 6106.00 5755.00 4788.00 5376.00 5067.00 4204.00 5047.00 4757.00 3969.00 4607.00 4342.00 3321.00 3888.00 3664.00 2877.00 3858.00 3636.00 2776.00 3468.00 3269.00 2277.00 3818.00 3598.00 2774.00 4258.00 4013.00 3386.00 3788.00 3570.00 2885.00 3828.00 3608.00 2876.00 3808.00 3589.00 2901.00 3679.00 3467.00 2880.00 4138.00 3900.00 3218.00 4888.00 4607.00 3764.00 4988.00 4701.00 3746.00 5398.00 5088.00 3916.00 08/31/03 5904.00 5566.00 4354.00 MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT 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 November 9, 2000, and reinvestment of income and capital gains distributions. The Merrill Lynch 100 Technology Index is an equally weighted, unmanaged index of 100 leading technology stocks. Unlike the fund, indices are not investments, do not incur fees, and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. Index performance is from November 9, 2000. 16 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- OPTIMISTIC ABOUT THE PERIOD AHEAD The fund has had a strong run over the past eight months, a much needed recovery from a period when technology stocks were out of favor. Looking ahead, we remain bullish on the prospects for the technology sector because we believe the economy's underlying strength is just beginning to surface. However, we have not tied the fund's prospects to an improving economy or increased corporate spending on information technology. Instead, we are focused on product cycle themes, such as broadband and the Internet, where we believe accelerating usage has the potential to provide opportunities going forward. WAYNE M. COLLETTE, THEODORE R. WENDELL AND TRENT E. NEVILLS ON BEHALF OF THE COLUMBIA TECHNOLOGY FUND TEAM. An investment in the fund may present certain risks, including stock market fluctuations that occur in response to economic and business developments. In addition, the fund's share price will likely be subject to more volatility than the overall stock market because it concentrates in technology stocks. _________________ 1 Holdings are disclosed as of August 31, 2003 and are subject to change. TOP TEN HOLDINGS % of net assets August 31, 2003 Covad Communications Group 5.2 ZiLOG 2.7 Millicom International Cellular SA 2.4 United Online 2.4 Yahoo! 2.0 PMC-Sierra 1.7 Intel 1.6 MIPS Technologies, Class B 1.6 Switchboard 1.5 Telefonaktiebolaget LM Ericsson 1.5 --------------------------- TOP FIVE SECTORS % of net assets August 31, 2003 Semiconductor equipment & products 18.4 Software 12.0 Communications equipment 10.3 Internet software & services 9.5 Diversified telecommunication services 8.5 Because the fund is actively managed, there is no guarantee the fund will continue to maintain these holdings and sectors in the future.
AVERAGE ANNUAL TOTAL RETURN As of August 31, 2003 (%) CLASS A CLASS B CLASS D CLASS Z - ----------------------------------------------------------------------------------------------------------------------- Inception date 11/1/02 11/1/02 11/1/02 11/9/00 - ----------------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE - ----------------------------------------------------------------------------------------------------------------------- 8-month (cumulative) 55.94 46.97 55.03 50.03 55.56 53.01 56.46 - ----------------------------------------------------------------------------------------------------------------------- 1-year 53.11 44.15 51.81 46.81 52.33 49.78 53.63 - ----------------------------------------------------------------------------------------------------------------------- Life -17.11 -18.83 -17.36 -18.25 -17.26 -17.55 -17.01 - -----------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN As of June 30, 2003 (%) CLASS A CLASS B CLASS D CLASS Z - ----------------------------------------------------------------------------------------------------------------------- Inception date 11/1/02 11/1/02 11/1/02 11/9/00 - ----------------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE - ----------------------------------------------------------------------------------------------------------------------- 8-month (cumulative) 30.63 23.12 29.58 24.58 30.37 28.07 31.15 - ----------------------------------------------------------------------------------------------------------------------- 1-year 8.24 2.04 7.38 2.38 8.03 5.88 8.68 - ----------------------------------------------------------------------------------------------------------------------- Life -23.19 -24.89 -23.42 -24.30 -23.25 -23.54 -23.07 - -----------------------------------------------------------------------------------------------------------------------
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 assume reinvestment of distributions, if any. The "with sales charge" returns include the maximum 5.75% charge for class A shares, the appropriate class B contingent deferred sales charge (CDSC) for the holding period after purchase as follows: through the first year-5%, second year-4%, third year-3%, fourth year-3%, fifth year-2%, sixth year-1%, thereafter-0%, and the class D sales charge of 1% which also carries a CDSC of 1% that is applied to shares sold within the first year after they are purchased. Effective October 13, 2003, class D shares are closed to all new investors and new accounts. Existing class D shareholders will be able to make additional purchases at any time. In addition, class D sales charge of 1% is waived after October 13, 2003. 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. Classes A, B, and D (newer class shares) share performance information includes returns of the fund's class Z shares (the oldest existing fund class) for periods prior to the inception of the newer class shares. These class Z share returns are not restated to reflect any expense differential (e.g., Rule 12b-1 fees) between class Z shares and the newer class shares. Had the expense differential been reflected, the returns for the periods prior to the inception of classes A, B and D would have been lower. 17 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA STRATEGIC INVESTOR FUND The Board of Directors for Columbia Strategic Investor Fund, formerly Columbia Strategic Value Fund, approved the change of the fund's fiscal year end from December 31 to August 31. As a result, this report covers the eight-month period since the last annual report. The next report you receive will be a report for the six-month period through February 2004. For the eight-month period ended August 31, 2003, Columbia Strategic Investor Fund class A shares returned 21.48% without sales charge. The fund outperformed both the Russell 3000 Value Index and the S&P 500 Index, which returned 15.82% and 15.95%, respectively. It also did better than its peer group, the Lipper Multi-Cap Value Fund Category average, which was 17.20% during the same period. 1 Strong stock selection, particularly among retail and technology stocks, was the primary catalyst for the fund's positive performance. BETTER ECONOMY, INVESTOR OPTIMISM FUEL SPRING STOCK MARKET RALLY After a weak first quarter, the economic climate began to brighten in the spring as a result of 13 interest rate cuts, aggressive tax cuts, a significant increase in the money supply and an end to the major military campaign in Iraq. As a result, investors were willing to embrace more risky investments, and the stock market rallied strongly starting in May. However, we remained concerned about weak employment data, which could have a negative impact on consumer spending in the period ahead. As a result, we made some significant changes in the portfolio in the final months of the period. TECHNOLOGY AND RETAIL HOLDINGS POST STRONG GAINS The fund's exposure to the technology sector was a key contributor to positive performance for the period. Among the fund's top performers were software leader SAP AG, a leader in enterprise software, and Polycom, a video conferencing company (0.3% and 0.7% of net assets, respectively). 2 Polycom benefited from corporate America's focus on cost cutting, a trend that we anticipate will continue. We also believe that Polycom, along with JLG Industries (0.3% of net assets), a leading producer of materials handling equipment, are likely beneficiaries of any increase in capital spending by small businesses. In the consumer sector, our investments in Home Depot and Target had a significant positive impact on performance (0.2% and 0.3% of net assets, respectively). However, weaker-than-anticipated employment data in August prompted us to shift our overall portfolio strategy from aggressive to defensive. We took profits and trimmed positions in both retailers. The fund redeployed assets to more stable, long-term performers in the consumer sector, such as McDonald's (0.6% of net assets), which enjoyed a strong comeback near the end of the eight-month period. We also added Covad Communications Group, a leading broadband service provider of high speed internet (0.2% of net assets). NEW INVESTMENTS IN HEALTH CARE AND INTERNATIONAL STOCKS As we shifted away from consumer cyclicals, we also added to more defensive sectors. For example, we added to our investments in the health care sector, where demographic trends are fueling long-term demand. We made new investments in Haemonetics, ICN Pharmaceuticals, Tenet Healthcare and Merck (0.4%, 0.4%, 0.3% and 0.2% of net assets, respectively). We also boosted our investment in Barrick Gold (0.5% of net assets), a gold exploration and mining company. During periods of economic uncertainty, gold offers an attractive alternative to equities and bonds. Finally, in financial services, we sought to avoid the impact of rising interest rates by investing outside the United States. We trimmed our positions in Wachovia and J.P. Morgan Chase (0.3% and 0.5% of net assets, respectively) and began or increased our exposure in Japanese financial institutions such as Nikko Cordial, Nomura Holdings and Mitsubishi Tokyo Financial Group (0.2%, 0.3%, and 0.2% of net assets, respectively). PERFORMANCE OF A $10,000 INVESTMENT 11/9/00 - 8/31/03 WITHOUT SALES CHARGE WITH SALES CHARGE -------------------- ----------------- Class A $ 16,166 $ 15,238 Class B 16,034 15,734 Class D 16,024 15,866 Class Z 16,196 n/a --------------------------------- GROWTH OF $10,000 SINCE INCEPTION (MOUNTAIN CHART) CLASS A SHARES CLASS A SHARES S&P 500 RUSSELL 3000 WITHOUT SALES CHARGE WITH SALES CHARGE INDEX VALUE INDEX -------------------- ----------------- ----- ----------- 11/09/00 $10000.00 $ 9425.00 $10000.00 $10000.00 9790.00 9227.00 9340.00 9686.00 11224.00 10579.00 9386.00 10206.00 12274.00 11568.00 9719.00 10261.00 12254.00 11549.00 8833.00 9994.00 11984.00 11295.00 8273.00 9655.00 12934.00 12190.00 8915.00 10126.00 13743.00 12953.00 8975.00 10356.00 13963.00 13160.00 8757.00 10171.00 13884.00 13085.00 8671.00 10136.00 13664.00 12879.00 8128.00 9755.00 12325.00 11616.00 7472.00 9041.00 12736.00 12003.00 7614.00 8984.00 13896.00 13097.00 8198.00 9515.00 14568.00 13731.00 8270.00 9764.00 14599.00 13759.00 8150.00 9703.00 14719.00 13872.00 7992.00 9722.00 15591.00 14695.00 8293.00 10202.00 15521.00 14629.00 7790.00 9906.00 15541.00 14648.00 7733.00 9925.00 14900.00 14043.00 7182.00 9383.00 13636.00 12852.00 6623.00 8472.00 13676.00 12889.00 6666.00 8529.00 12311.00 11603.00 5941.00 7604.00 12894.00 12153.00 6464.00 8135.00 14141.00 13328.00 6845.00 8656.00 13310.00 12544.00 6443.00 8281.00 12945.00 12201.00 6274.00 8078.00 12681.00 11952.00 6180.00 7859.00 12620.00 11894.00 6240.00 7877.00 13827.00 13032.00 6754.00 8574.00 14982.00 14121.00 7110.00 9150.00 15125.00 14255.00 7201.00 9267.00 15601.00 14704.00 7328.00 9429.00 08/31/03 16166.00 15238.00 7470.00 9593.00 MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT 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 November 9, 2000, and reinvestment of income and capital gains distributions. The Russell 3000 Value Index measures the performance of those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values. The stocks in this index are also members of either the Russell 1000 Value or the Russell 2000 Value indexes. The S&P 500 Index is an unmanaged index that tracks the performance of 500 widely held large capitalization US stocks. Unlike the fund, indices are not investments, do not incur fees and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. Index performance is from November 9, 2000. 18 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- LOOKING AHEAD The fund's positioning reflects our mixed outlook for the economy in the months ahead. We will continue to look for signs that a solid recovery is underway, but we believe that the economy's growth spurt could be cut short if it is not accompanied by job growth. For now we expect to maintain a more defensive posture, especially relative to the US consumer. ROBERT A. UNGER AND EMIL GJESTER CO-PORTFOLIO MANAGERS An investment in the fund may present certain risks, including stock market fluctuations that occur in response to economic and business developments; and a greater degree of social, political and economic volatility associated with international investing. Stocks of small- and mid-cap companies may trade less frequently, may trade smaller volumes and may fluctuate more sharply in price than stocks of larger companies. The fund also invests in foreign securities, which have special risks, including political or economic instability and higher transaction costs; different regulations, accounting standards, trading practices and levels of information; and currency exchange rate fluctuations. ____________________ 1 Lipper Inc., a widely respected data provider in the industry, calculates an average total return for mutual funds with similar investment objectives as those of the fund. 2 Holdings are disclosed as of August 31, 2003 and are subject to change. TOP TEN HOLDINGS % of net assets August 31, 2003 3M 1.6 Caterpillar 1.2 Eaton 1.0 Citigroup 0.9 Texas Instruments 0.8 Potash 0.8 Cendant 0.8 Fifth Third Bancorp 0.8 MGIC Investment 0.7 Polycom 0.7 -------------------- TOP FIVE SECTORS % of net assets August 31, 2003 Consumer discretionary 12.6 Financials 11.9 Industrials 11.8 Information technology 10.1 Materials 8.4 Because the fund is actively managed, there is no guarantee the fund will continue to maintain these holdings and sectors in the future.
AVERAGE ANNUAL TOTAL RETURN As of August 31, 2003 (%) CLASS A CLASS B CLASS D CLASS Z - -------------------------------------------------------------------------------------------------------------------------- Inception date 11/1/02 11/1/02 11/1/02 11/9/00 - -------------------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE - -------------------------------------------------------------------------------------------------------------------------- 8-month (cumulative) 21.48 14.49 20.76 15.76 20.59 18.40 21.61 - -------------------------------------------------------------------------------------------------------------------------- 1-year 18.24 11.45 17.27 12.27 17.20 15.02 18.46 - -------------------------------------------------------------------------------------------------------------------------- Life 18.65 16.18 18.31 17.52 18.28 17.86 18.73 - --------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN As of June 30, 2003 (%) CLASS A CLASS B CLASS D CLASS Z - -------------------------------------------------------------------------------------------------------------------------- Inception date 11/1/02 11/1/02 11/1/02 11/9/00 - -------------------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE - -------------------------------------------------------------------------------------------------------------------------- 8-month (cumulative) 17.30 10.55 16.51 11.51 16.43 14.28 17.45 - -------------------------------------------------------------------------------------------------------------------------- 1-year 1.51 -4.35 0.83 -4.16 0.77 -1.23 1.65 - -------------------------------------------------------------------------------------------------------------------------- Life 16.97 14.38 16.67 15.78 16.64 16.20 17.03 - --------------------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions, if any. The "with sales charge" returns include the maximum 5.75% charge 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 D sales charge of 1% which also carries a CDSC of 1% that is applied to shares sold within the first year after they are purchased. Effective October 13, 2003, class D shares are closed to all new investors and new accounts. Existing class D shareholders will be able to make additional purchases at any time. In addition, class D sales charge of 1% is waived after October 13, 2003. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. Performance results reflect any voluntary waivers or reimbursements of fund expenses by the advisor or its affiliates. Absent these waivers or reimbursement arrangements, performance results would have been lower. Classes A, B and D (newer class shares) share performance information includes returns of the fund's class Z shares (the oldest existing fund class) for periods prior to the inception of the newer class shares. These class Z share returns are not restated to reflect any differences in expenses (e.g., Rule 12b-1 fees) between class Z shares and the newer class shares. If difference in expenses had been reflected, the returns shown for periods prior to the inception of classes A, B and D would have been lower. 19 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA BALANCED FUND The Board of Directors for Columbia Balanced Fund approved the change of the fund's fiscal year end from December 31 to August 31. As a result, this report covers the eight-month period since the last annual report. The next report you receive will be a report for the six-month period through February 2004. For the eight months ended August 31, 2003, Columbia Balanced Fund class A shares returned 10.35% without sales charge. Over the same time, the Lehman Brothers Aggregate Bond Index returned 1.10% and the S&P 500 Index returned 15.95%. The fund's performance was slightly less than the Lipper Balanced Funds Category average, which returned 10.55%. 1 Strong stock selection in consumer cyclicals and finance helped performance. In addition, the fund's overweight in the consumer cyclicals sector and underweight in the consumer staples sector benefited returns. HISTORICALLY LOW YIELDS LIMITED FIXED-INCOME RETURNS The year began with the widespread belief that interest rates were poised to move higher. However, they moved lower when the economy failed to show marked improvement, and did not move higher until the economy showed signs of stabilizing late in the period. In June, the Federal Reserve Board lowered the federal funds rate--the overnight rate banks charge each other for borrowing--to 1.0%. Investors responded to the lowest short-term yields in 45 years by shifting to higher-yielding, lower quality fixed-income securities. While the bonds in the fund's portfolio performed better than our benchmark, the Lehman Brothers Aggregate Bond Index, they were not a strong contributor to the fund's overall performance. High-yield bonds are limited to 10% of the fund's bond holdings and we do not invest in emerging market or foreign currency denominated bonds. These groups were strong performers during the period. STOCKS DECLINED EARLY IN PERIOD, SOARED IN SECOND HALF During the first three months of 2003, the sluggish stock market reflected investor fears of impending war in Iraq, rising unemployment and generally weak economic growth. However, investor psychology began to shift after the United States declared a swift military victory in Iraq and corporate profits began to rise. As a result, we increased the fund's allocation to stocks and reduced its exposure to bonds to take advantage of improving stock market conditions. Early in the period, we built up our positions in out-of-favor cyclical stocks, particularly in the leisure and retail areas. We began or added to our investment in Carnival, which we later sold at a profit, as well as Royal Caribbean Cruises, Target and Dollar General (0.7%, 1.0% and 0.6% of net assets, respectively). 2 These holdings helped performance as investor and consumer sentiment improved. Our investments in the technology and financial sectors also helped performance. Silicon Laboratories and National Semiconductor (0.5% and 0.5% of net assets, respectively) both posted returns that outpaced those of their large-cap counterparts. Citigroup, Merrill Lynch and American Express (3.1%, 0.6% and 1.3% of net assets, respectively) also posted gains as the economy strengthened over the summer. PERFORMANCE OF A $10,000 INVESTMENT 8/31/93 - 8/31/03 WITHOUT SALES CHARGE WITH SALES CHARGE -------------------- ----------------- Class A $ 20,409 $ 19,237 Class B 20,286 20,286 Class D 20,308 20,102 Class Z 20,498 n/a ------------------------------ GROWTH OF $10,000 OVER 10 YEARS
CLASS A CLASS A S&P 500 LEHMAN BROTHERS WITHOUT SALES CHARGE WITH SALES CHARGE INDEX AGGREGATE BOND INDEX -------------------- ----------------- ----- -------------------- 08/31/93 $10000.00 $ 9425.00 $10000.00 $10000.00 10048.00 9470.00 10027.00 9923.00 10118.00 9537.00 10064.00 10128.00 9983.00 9409.00 9979.00 10032.00 10124.00 9541.00 10032.00 10154.00 10361.00 9766.00 10168.00 10499.00 10175.00 9590.00 9991.00 10213.00 9870.00 9302.00 9744.00 9768.00 9915.00 9345.00 9666.00 9893.00 10023.00 9447.00 9665.00 10055.00 9835.00 9269.00 9644.00 9809.00 10134.00 9551.00 9836.00 10131.00 10317.00 9724.00 9848.00 10546.00 10116.00 9534.00 9703.00 10288.00 10133.00 9550.00 9694.00 10519.00 9988.00 9414.00 9673.00 10136.00 10133.00 9550.00 9740.00 10286.00 10274.00 9683.00 9932.00 10553.00 10614.00 10004.00 10169.00 10964.00 10767.00 10148.00 10231.00 11288.00 10902.00 10276.00 10374.00 11619.00 11281.00 10632.00 10776.00 12084.00 11429.00 10771.00 10854.00 12365.00 11649.00 10979.00 10830.00 12775.00 11775.00 11098.00 10961.00 12807.00 12043.00 11351.00 11068.00 13347.00 12025.00 11334.00 11212.00 13299.00 12381.00 11669.00 11380.00 13883.00 12673.00 11945.00 11539.00 14151.00 12832.00 12094.00 11615.00 14632.00 12825.00 12088.00 11413.00 14768.00 12927.00 12184.00 11333.00 14910.00 12977.00 12231.00 11270.00 15129.00 13104.00 12351.00 11247.00 15520.00 13226.00 12466.00 11398.00 15579.00 12956.00 12211.00 11429.00 14890.00 13162.00 12406.00 11409.00 15204.00 13561.00 12781.00 11608.00 16060.00 13723.00 12934.00 11866.00 16504.00 14318.00 13495.00 12068.00 17751.00 14168.00 13353.00 11956.00 17400.00 14516.00 13682.00 11993.00 18487.00 14558.00 13721.00 12023.00 18631.00 14340.00 13516.00 11890.00 17866.00 14742.00 13894.00 12068.00 18932.00 15234.00 14358.00 12183.00 20085.00 15691.00 14789.00 12328.00 20985.00 16585.00 15632.00 12661.00 22655.00 16081.00 15157.00 12553.00 21387.00 16536.00 15585.00 12738.00 22559.00 16349.00 15409.00 12922.00 21805.00 16672.00 15713.00 12982.00 22815.00 16822.00 15854.00 13113.00 23207.00 17057.00 16076.00 13281.00 23465.00 17654.00 16639.00 13270.00 25157.00 18157.00 17113.00 13315.00 26445.00 18261.00 17211.00 13384.00 26712.00 18182.00 17137.00 13512.00 26252.00 18791.00 17711.00 13626.00 27318.00 18712.00 17636.00 13655.00 27029.00 17307.00 16312.00 13878.00 23120.00 17897.00 16868.00 14202.00 24602.00 18477.00 17415.00 14127.00 26602.00 19161.00 18059.00 14208.00 28215.00 20199.00 19038.00 14250.00 29840.00 20775.00 19580.00 14351.00 31087.00 20314.00 19146.00 14100.00 30120.00 20976.00 19770.00 14178.00 31325.00 21177.00 19960.00 14223.00 32537.00 20764.00 19570.00 14098.00 31769.00 21475.00 20240.00 14053.00 33533.00 21049.00 19839.00 13992.00 32486.00 20801.00 19605.00 13985.00 32327.00 20703.00 19513.00 14148.00 31441.00 21345.00 20118.00 14200.00 33432.00 21800.00 20546.00 14199.00 34110.00 22761.00 21452.00 14130.00 36119.00 22235.00 20957.00 14084.00 34306.00 22880.00 21564.00 14254.00 33658.00 24335.00 22936.00 14442.00 36950.00 23827.00 22457.00 14401.00 35837.00 23233.00 21897.00 14393.00 35103.00 24002.00 22622.00 14693.00 35970.00 23928.00 22552.00 14826.00 35409.00 24954.00 23520.00 15041.00 37608.00 23901.00 22527.00 15136.00 35622.00 23548.00 22194.00 15236.00 35472.00 22552.00 21255.00 15486.00 32677.00 22951.00 21631.00 15774.00 32837.00 23371.00 22027.00 16033.00 34003.00 21901.00 20641.00 16172.00 30902.00 21152.00 19936.00 16253.00 28943.00 22068.00 20799.00 16185.00 31192.00 22169.00 20894.00 16282.00 31400.00 21857.00 20600.00 16344.00 30637.00 21795.00 20542.00 16710.00 30337.00 21004.00 19796.00 16902.00 28438.00 19950.00 18803.00 17100.00 26140.00 20337.00 19167.00 17457.00 26640.00 21134.00 19919.00 17216.00 28683.00 21252.00 20030.00 17106.00 28935.00 20955.00 19750.00 17245.00 28513.00 20770.00 19576.00 17412.00 27962.00 21069.00 19858.00 17123.00 29014.00 20366.00 19195.00 17455.00 27256.00 20439.00 19264.00 17603.00 27054.00 19581.00 18455.00 17755.00 25128.00 18580.00 17512.00 17970.00 23170.00 18831.00 17748.00 18273.00 23321.00 17778.00 16756.00 18569.00 20786.00 18461.00 17399.00 18484.00 22615.00 19175.00 18073.00 18478.00 23947.00 18497.00 17433.00 18861.00 22541.00 18254.00 17205.00 18878.00 21951.00 18148.00 17105.00 19138.00 21622.00 18223.00 17175.00 19123.00 21831.00 19156.00 18054.00 19282.00 23630.00 19813.00 18674.00 19640.00 24875.00 19922.00 18776.00 19601.00 25194.00 19954.00 18806.00 18942.00 25637.00 08/31/03 20409.00 19237.00 19074.00 26130.00
MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT 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 August 31, 1993, and reinvestment of income and capital gains distributions. The Lehman Brothers Aggregate Bond Index is an unmanaged index that represents average market-weighted performance of U.S. Treasury and agency securities, investment-grade corporate bonds, and mortgage-backed securities with maturities greater than one year. The S&P 500 Index tracks the performance of 500 widely held large-capitalization US Stocks. Unlike the fund, indices are not investments, do not incur fees, and are not professionally managed. It is not possible to invest directly in an index. Securities in this fund may not match those in an index. 20 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- GENERALLY POSITIVE OUTLOOK We believe the combination of reduced tax rates and recent stock market gains will continue to make consumers more optimistic and result in a moderate to strong economy in the coming months. In this environment, we expect to maintain our diversified bond holdings, with an emphasis on quality and a bias toward companies that can benefit from an improving economy. We are generally more optimistic on capital spending going forward and will look for opportunities to incorporate that outlook into our stock selection. LEONARD APLET, JEFFREY RIPPEY, SCOTT DRYSDALE, RON GIBBS, GUY POPE AND TRENT E. NEVILLS FOR THE LARGE CAP CORE AND FIXED INCOME INVESTMENT TEAMS An investment in the fund may present certain risks, including stock market fluctuations that occur in response to economic and business developments. The fund is also subject to risks associated with investments in bonds, including interest rate risk, credit risk and prepayment risk. ____________________ 1 Lipper Inc., a widely respected data provider in the industry, calculates an average total return for mutual funds with similar investment objectives as those of the fund. 2 Holdings are disclosed as of August 31, 2003 and are subject to change. TOP TEN EQUITY HOLDINGS % of net assets August 31, 2003 Citigroup 3.1 Microsoft 2.3 General Electric 2.1 Pfizer 1.9 Bank of America 1.4 American Express 1.3 Kohl's 1.2 Johnson & Johnson 1.0 Altria Group 1.0 Target 1.0 ------------------------------- PORTFOLIO COMPOSITION % of net assets August 31, 2003 Common stocks 63.7 Government issues 14.0 Corporate notes & bonds 13.8 Asset-backed securities 3.6 Cash, net receivables & payables 2.4 Collateralized mortgage obligations 1.1 Commercial mortgage-backed securities 1.0 Preferred stock 0.4 Because the fund is actively managed, there can be no guarantee the fund will continue to maintain these holdings or this composition in the future.
AVERAGE ANNUAL TOTAL RETURN As of August 31, 2003 (%) CLASS A CLASS B CLASS D CLASS Z - -------------------------------------------------------------------------------------------------------------------------- Inception date 11/1/02 11/1/02 11/1/02 10/1/91 - -------------------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE - -------------------------------------------------------------------------------------------------------------------------- 8-month (cumulative) 10.35 4.01 9.83 4.83 10.01 7.92 10.81 - -------------------------------------------------------------------------------------------------------------------------- 1-year 8.39 2.17 7.74 2.74 7.86 5.80 8.86 - -------------------------------------------------------------------------------------------------------------------------- 5-year 3.35 2.14 3.23 2.91 3.25 3.04 3.44 - -------------------------------------------------------------------------------------------------------------------------- 10-year 7.39 6.76 7.33 7.33 7.34 7.23 7.44 - --------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN As of June 30, 2003 (%) CLASS A CLASS B CLASS D CLASS Z - -------------------------------------------------------------------------------------------------------------------------- Inception date 11/1/02 11/1/02 11/1/02 10/1/91 - -------------------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE - -------------------------------------------------------------------------------------------------------------------------- 8-month (cumulative) 7.91 1.71 7.37 2.37 7.44 5.37 8.27 - -------------------------------------------------------------------------------------------------------------------------- 1-year 1.74 -4.13 1.23 -3.75 1.29 -0.71 2.07 - -------------------------------------------------------------------------------------------------------------------------- 5-year 1.17 -0.02 1.07 0.76 1.08 0.88 1.24 - -------------------------------------------------------------------------------------------------------------------------- 10-year 7.51 6.87 7.45 7.45 7.46 7.35 7.54 - --------------------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions, if any. The "with sales charge" returns include the maximum 5.75% charge 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 D sales charge of 1% which also carries a CDSC of 1% that is applied to shares sold within the first year after they are purchased. Effective October 13, 2003, class D shares are closed to all new investors and new accounts. Existing class D shareholders will be able to make additional purchases at any time. In addition, class D sales charge of 1% is waived after October 13, 2003. 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. Classes A, B, and D (newer class shares) share performance information includes returns of the fund's class Z shares (the oldest existing fund class) for periods prior to the inception of the newer class shares. These class Z share returns are not restated to reflect any expense differential (e.g., Rule 12b-1 fees) between class Z shares and the newer class shares. Had the expense differential been reflected, the returns for the periods prior to the inception of classes A, B and D would have been lower. 21 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA SHORT TERM BOND FUND The Board of Directors for Columbia Short Term Bond Fund approved the change of the fund's fiscal year end from December 31 to August 31. As a result, this report covers the eight-month period since the last annual report. The next report you receive will be a report for the six-month period through February 2004. For the eight-month period ended August 31, 2003, the class A shares of Columbia Short Term Bond Fund returned 0.82% without sales charge. By comparison, the Merrill Lynch 1-5 Year Government/Corporate Index returned 1.55%, the Merrill Lynch 1-3 Year Treasury Index returned 0.82% and the Lipper Short Investment Grade Debt Category returned 1.27%. 1 The fund's returns were in line with the 1-3 year index, but were below the 1-5 year index because bonds with longer maturities outperformed during the period. The fund underperformed its peer group in large part because we maintained our high quality standards at a time when the market became more receptive to lower quality securities. THE RECOVERY GROWS STRONGER Gross domestic product (GDP) rose by just 1.4% in the first quarter, as business investment and industrial production were especially sluggish. The government continued its efforts to stimulate the economy by reducing taxes, growing the money supply and lowering short-term interest rates. In late June, the Federal Reserve Board lowered the fed funds rate--the target overnight interest rate at which commercial banks lend money to one another--by one quarter of a percentage point, to just 1.00%. In this environment, mortgage rates dropped to 45-year lows, and the resulting wave of refinancings created additional stimulus for the consumer. As a result, automobile sales were strong, as was the housing market. Second quarter GDP growth came in at a higher-than-expected 3.1%, and growth at this level or above is widely anticipated for the remainder of the year. A RISK-TAKER'S MARKET As yields on money market mutual funds, CDs and bank deposits declined to historically low levels, fixed-income investors sought higher yields by moving into longer duration, lower quality securities. Duration is a measure of interest-rate sensitivity, and higher durations are associated with greater risk in a rising interest-rate environment. The trend toward risk-taking had a negative effect on relative performance during the first eight months of 2003. The fund holds only investment grade securities and has maintained an average credit quality of A+, with less than 8% of the portfolio in the BBB category. Similarly, the fund's average duration of between 1.65 to 1.75 years was in line with that of the Merrill Lynch 1-3 Year Treasury Index. However, it was materially lower than the 2.3 to 2.4 year duration of the Merrill Lynch 1-5 Year Government/Corporate Index during a time when securities with higher durations outperformed. The fund maintained its positions in high-quality mortgage-backed and asset-backed securities, which generally provide higher yields than Treasuries without the credit risk of lower-quality corporate bonds. The asset-backed sector did especially well in the first quarter and then stabilized during the second quarter. Until interest rates began to rise during the summer, mortgage pass-throughs were hampered by unusually high refinancing activity, which caused the securities to prepay. The fund was able to limit its prepayment exposure by focusing on mortgages with lower coupons (or stated interest rates). PERFORMANCE OF A $10,000 INVESTMENT 8/31/93 - 8/31/03 WITHOUT SALES CHARGE WITH SALES CHARGE -------------------- ----------------- Class A $ 16,266 $ 15,489 Class B 16,163 16,163 Class D 16,241 16,072 Class G 16,196 16,196 Class T 16,286 15,508 Class Z 16,313 n/a ------------------------------- GROWTH OF $10,000 OVER 10 YEARS (MOUNTAIN CHART)
MERRILL LYNCH 1-5 MERRILL LYNCH 1-3 CLASS A SHARES CLASS A SHARES YEAR GOV'T/CORP YEAR TREASURY WITHOUT SALES CHARGE WITH SALES CHARGE INDEX INDEX -------------------- ----------------- ----- ----- 08/31/93 $10000.00 $ 9525.00 $10000.00 $10000.00 10018.00 9542.00 10036.00 10032.00 10036.00 9559.00 10058.00 10052.00 10018.00 9542.00 10040.00 10055.00 10060.00 9582.00 10081.00 10092.00 10115.00 9635.00 10166.00 10157.00 10034.00 9558.00 10065.00 10092.00 9981.00 9507.00 9974.00 10041.00 9952.00 9480.00 9916.00 10006.00 9962.00 9489.00 9930.00 10020.00 9985.00 9511.00 9950.00 10050.00 10060.00 9582.00 10056.00 10137.00 10088.00 9609.00 10092.00 10172.00 10057.00 9579.00 10040.00 10149.00 10076.00 9597.00 10054.00 10171.00 10046.00 9569.00 10001.00 10125.00 10057.00 9579.00 10027.00 10149.00 10182.00 9698.00 10180.00 10290.00 10290.00 9801.00 10353.00 10431.00 10342.00 9851.00 10415.00 10489.00 10431.00 9935.00 10522.00 10582.00 10598.00 10094.00 10769.00 10768.00 10646.00 10140.00 10833.00 10826.00 10679.00 10171.00 10861.00 10870.00 10738.00 10228.00 10936.00 10935.00 10785.00 10272.00 10999.00 10989.00 10885.00 10368.00 11106.00 11081.00 10997.00 10475.00 11224.00 11179.00 11083.00 10556.00 11325.00 11265.00 11181.00 10650.00 11426.00 11361.00 11102.00 10575.00 11347.00 11313.00 11052.00 10527.00 11315.00 11303.00 11041.00 10516.00 11304.00 11312.00 11046.00 10522.00 11312.00 11336.00 11133.00 10604.00 11409.00 11417.00 11168.00 10638.00 11450.00 11462.00 11189.00 10658.00 11478.00 11501.00 11307.00 10770.00 11604.00 11605.00 11442.00 10898.00 11764.00 11736.00 11532.00 10984.00 11879.00 11827.00 11511.00 10964.00 11849.00 11827.00 11559.00 11010.00 11902.00 11882.00 11576.00 11026.00 11922.00 11910.00 11542.00 10994.00 11893.00 11905.00 11648.00 11095.00 12008.00 12003.00 11714.00 11157.00 12095.00 12084.00 11791.00 11231.00 12190.00 12168.00 11928.00 11361.00 12369.00 12301.00 11919.00 11353.00 12352.00 12313.00 11997.00 11427.00 12466.00 12406.00 12090.00 11516.00 12579.00 12498.00 12095.00 11521.00 12602.00 12528.00 12175.00 11597.00 12696.00 12613.00 12298.00 11714.00 12844.00 12735.00 12283.00 11700.00 12842.00 12747.00 12318.00 11732.00 12892.00 12799.00 12380.00 11792.00 12952.00 12859.00 12445.00 11854.00 13031.00 12927.00 12493.00 11900.00 13107.00 12995.00 12543.00 11947.00 13166.00 13056.00 12713.00 12109.00 13357.00 13220.00 12896.00 12283.00 13596.00 13395.00 12959.00 12343.00 13639.00 13460.00 12912.00 12299.00 13620.00 13448.00 12959.00 12343.00 13671.00 13495.00 13003.00 12385.00 13739.00 13549.00 12901.00 12289.00 13615.00 13483.00 12990.00 12373.00 13727.00 13576.00 13016.00 12398.00 13772.00 13619.00 12981.00 12365.00 13719.00 13611.00 13023.00 12404.00 13758.00 13653.00 13050.00 12430.00 13774.00 13697.00 13062.00 12441.00 13801.00 13737.00 13138.00 12514.00 13913.00 13826.00 13152.00 12527.00 13945.00 13864.00 13165.00 12540.00 13967.00 13890.00 13190.00 12564.00 13970.00 13909.00 13178.00 12552.00 13939.00 13904.00 13260.00 12630.00 14038.00 13997.00 13313.00 12681.00 14148.00 14084.00 13349.00 12715.00 14158.00 14120.00 13404.00 12767.00 14199.00 14178.00 13508.00 12867.00 14386.00 14326.00 13565.00 12921.00 14488.00 14416.00 13656.00 13007.00 14623.00 14523.00 13713.00 13062.00 14755.00 14627.00 13772.00 13118.00 14821.00 14706.00 13925.00 13264.00 14992.00 14846.00 14149.00 13477.00 15209.00 15022.00 14323.00 13643.00 15429.00 15210.00 14441.00 13755.00 15550.00 15309.00 14546.00 13855.00 15691.00 15436.00 14562.00 13870.00 15701.00 15478.00 14647.00 13951.00 15793.00 15565.00 14698.00 14000.00 15852.00 15617.00 14923.00 14214.00 16105.00 15792.00 15044.00 14329.00 16223.00 15884.00 15247.00 14523.00 16513.00 16146.00 15433.00 14700.00 16708.00 16299.00 15332.00 14604.00 16608.00 16264.00 15294.00 14568.00 16573.00 16270.00 15351.00 14622.00 16621.00 16303.00 15420.00 14687.00 16724.00 16381.00 15332.00 14604.00 16557.00 16270.00 15517.00 14780.00 16785.00 16452.00 15612.00 14871.00 16915.00 16518.00 15704.00 14958.00 17062.00 16656.00 15797.00 15046.00 17280.00 16859.00 15909.00 15153.00 17427.00 16917.00 16074.00 15311.00 17648.00 17057.00 15988.00 15228.00 17647.00 17096.00 15991.00 15231.00 17615.00 17043.00 16136.00 15370.00 17884.00 17205.00 16156.00 15388.00 17893.00 17204.00 16283.00 15510.00 18051.00 17276.00 16298.00 15524.00 18087.00 17307.00 16362.00 15584.00 18168.00 17340.00 16484.00 15701.00 18363.00 17406.00 16491.00 15708.00 18387.00 17432.00 16248.00 15477.00 18149.00 17338.00 08/31/03 16266.00 15489.00 18167.00 17346.00
MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT 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 August 31, 1993, and reinvestment of income and capital gains distributions. The Merrill Lynch 1-5 Year Government/Corporate Index is an unmanaged index that includes all US government debt with at least $100 million face value outstanding, as well as investment-grade rated corporate debt with at least $100 million face value outstanding and a maturity of 1-5 years. The Merrill Lynch 1-3 Year Treasury Index is an unmanaged index that measures the return of Treasury bills and notes with maturities of 1-3 years and is intended to provide a benchmark for the prior investment objective and strategy of the fund. Unlike the fund, indices are not investments, do not incur fees, 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. 22 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- TAKING PRECAUTIONS AGAINST HIGHER RATES Many market observers believe that GDP growth will accelerate during the second half of the year, possibly to the 4% level. Inflation has not yet been a problem, but recent upward moves in the prices of oil, gasoline, gold and industrial materials make us more cautious going forward. While we don't anticipate a robust recovery, the possibility of higher interest rates has led us to maintain a higher-than-average cash position so as to reduce the fund's duration. In the mortgage area, we have sought 15-year mortgages as a means of keeping our duration low. We believe that this emphasis on short duration will benefit shareholders should rates rise. LEONARD A. APLET AND RICHARD R. CUTTS PORTFOLIO MANAGERS The fund offers the potential for current income and capital preservation but is subject to interest rate risk, credit risk and prepayment risk. ________________________ 1 Lipper Inc., a widely respected data provider in the industry, calculates an average total return for mutual funds with similar investment objectives as those of the fund. PORTFOLIO COMPOSITION % of net assets August 31, 2003 Corporate notes & bonds 32.5 Collateralized mortgage obligations 19.8 Government issues 18.1 Cash, net receivables & payables 17.3 Asset-backed securities 11.5 Commercial mortgage-backed securities 0.8 Because the fund is actively managed, there can be no guarantee the fund will continue to maintain this composition in the future. --------------------------------- PORTFOLIO QUALITY % of portfolio holdings August 31, 2003 (PIE CHART) Agency 15.2 Aaa 48.7 Aa 10.1 A 13.8 Baa 7.5 Treasury 4.7 Ratings shown represent the highest rating assigned to a particular bond by one of the nationally-recognized ratings agencies: Standard and Poor's Corporation, Moody's Investors Service, Inc. or Fitch Investors Service, Inc.
AVERAGE ANNUAL TOTAL RETURN As of August 31, 2003 (%) CLASS A CLASS B CLASS D CLASS G CLASS T CLASS Z - ------------------------------------------------------------------------------------------------------------------------------------ Inception date 11/1/02 11/1/02 11/1/02 11/1/02 11/1/02 11/6/86 - ------------------------------------------------------------------------------------------------------------------------------------ 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 - ------------------------------------------------------------------------------------------------------------------------------------ 8-month (cumulative) 0.82 -3.95 0.35 -4.62 0.72 -1.30 0.47 -4.50 0.93 -3.84 1.06 - ------------------------------------------------------------------------------------------------------------------------------------ 1-year 2.26 -2.59 1.61 -3.38 2.10 0.06 1.82 -3.17 2.39 -2.47 2.56 - ------------------------------------------------------------------------------------------------------------------------------------ 5-year 5.05 4.03 4.92 4.59 5.02 4.82 4.96 4.46 5.08 4.06 5.12 - ------------------------------------------------------------------------------------------------------------------------------------ 10-year 4.99 4.47 4.92 4.92 4.97 4.86 4.94 4.94 5.00 4.49 5.02 - ------------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN As of June 30, 2003 (%) CLASS A CLASS B CLASS D CLASS G CLASS T CLASS Z - ------------------------------------------------------------------------------------------------------------------------------------ Inception date 11/1/02 11/1/02 11/1/02 11/1/02 11/1/02 11/6/86 - ------------------------------------------------------------------------------------------------------------------------------------ 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 - ------------------------------------------------------------------------------------------------------------------------------------ 8-month (cumulative) 3.15 -1.74 2.63 -2.37 3.02 0.97 2.81 -2.19 3.26 -1.64 3.41 - ------------------------------------------------------------------------------------------------------------------------------------ 1-year 5.00 0.00 4.47 -0.53 4.87 2.79 4.65 -0.35 5.12 0.11 5.26 - ------------------------------------------------------------------------------------------------------------------------------------ 5-year 5.71 4.69 5.60 5.28 5.68 5.48 5.64 5.15 5.73 4.72 5.76 - ------------------------------------------------------------------------------------------------------------------------------------ 10-year 5.26 4.75 5.20 5.20 5.24 5.13 5.22 5.22 5.27 4.76 5.28 - ------------------------------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions, if any. The "with sales charge" returns include the maximum 4.75% charge 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 D sales charge of 1% which also carries a CDSC of 1% 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%, fourth year-4%, fifth year-3%, sixth year-2%, seventh year-1%, thereafter-0%. For class T shares, the "with sales charge" returns include the maximum 4.75% charge. Effective October 13, 2003, class D shares are closed to all new investors and new accounts. Existing class D shareholders will be able to make additional purchases at any time. In addition, class D sales charge of 1% is waived after October 13, 2003. 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. Classes A, B, D, G and T (newer class shares) share performance information includes returns of the fund's class Z shares (the oldest existing fund class) for periods prior to the inception of the newer class shares. These class Z share returns are not restated to reflect any expense differential (e.g., Rule 12b-1 fees) between class Z shares and the newer class shares. Had the expense differential been reflected, the returns for the periods prior to the inception of classes A, B, D, G and T would have been lower. 23 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA FIXED INCOME SECURITIES FUND The Board of Directors for Columbia Fixed Income Securities Fund approved the change of the fund's fiscal year end from December 31 to August 31. As a result, this report covers the eight-month period since the last annual report. The next report you receive will be a report for the six-month period through February 2004. For the eight-month period ended August 31, 2003, class A shares of Columbia Fixed Income Securities Fund returned 0.84% without sales charge. By comparison, the Lehman Aggregate Bond Index and the Lipper Corporate Debt Funds A Rated Category average returned 1.10% and 1.57%, respectively. 1 At a time when fixed-income investors sought higher yields from lower quality securities, the fund's high credit quality standards placed it at a disadvantage with respect to its peer group, but overall returns were only slightly below the index. SHORT-TERM RATES DECLINE, LONG-TERM RATES INCREASE As the year began, the Federal Reserve Board signaled that it would continue to provide monetary stimulus as long as the economy remained sluggish. In late June, following a disappointing 1.4% first-quarter rise in gross domestic product (GDP), policymakers decided to lower the fed funds rate--the target overnight interest rate at which commercial banks lend money to one another--by one quarter of a percentage point, to just 1.00%. Money market rates followed suit, hitting all-time lows during the summer. In July, the Fed began to downplay the risk of deflation, and long-term rates, including mortgage rates, moved sharply higher. Overall, the yield curve steepened considerably, resulting in a yield differential of more than four percentage points between 3-month bills and the 30-year Treasury bond. A RISK TAKER'S MARKET With money market rates below the level of inflation, there was incentive for investment and risk-taking. Fixed-income investors have found it difficult to generate adequate yield without venturing into the lower-quality sectors of the market, especially low-rated corporate bonds. The fund, which can invest up to 10% of its assets in these securities, had 5-6% of its assets in the high-yield sector. This relatively low commitment hurt the fund relative to some of its peers, because many fixed-income funds allow as much as 20% of assets to be invested in high-yield securities, even those with ratings as low as single-B. The fund was also hurt versus its peer group because it does not buy any foreign-denominated or emerging market securities. Emerging market securities tend to be lower quality and higher yielding, and were therefore in high demand throughout the period. More generally, foreign bonds have done extremely well thus far in 2003 because of the decline in the dollar, which rewards securities denominated in other currencies. POSITIONING THE PORTFOLIO The fund portfolio remains modestly overweight in corporate bonds. Although the yield spreads (the yield differential between corporate bonds and Treasury securities of comparable maturities) have come down substantially, we believe that corporate bonds can continue to outperform in an environment where risk-free returns are low. Among other bond sectors, we have maintained an underweight in straight mortgage pass-throughs and an overweight in asset-backed securities, including commercial mortgages and collateralized mortgage obligations (CMOs). The asset-backed sector offers higher yields than Treasuries without the credit risks associated with the corporate market. PERFORMANCE OF A $10,000 INVESTMENT 8/31/93 - 8/31/03 WITHOUT SALES CHARGE WITH SALES CHARGE ------------------- ----------------- Class A $ 17,920 $ 17,073 Class B 17,808 17,808 Class D 17,843 17,668 Class Z 18,010 n/a ------------------------------- GROWTH OF $10,000 OVER 10 YEARS (MOUNTAIN CHART) LEHMAN BROTHERS CLASS A SHARES CLASS A SHARES AGGREGATE BOND WITHOUT SALES CHARGE WITH SALES CHARGE INDEX -------------------- ----------------- ----- 08/31/93 $10000.00 $ 9525.00 $10000.00 10027.00 9551.00 10027.00 10055.00 9577.00 10064.00 9923.00 9452.00 9979.00 9972.00 9498.00 10032.00 10110.00 9629.00 10168.00 9902.00 9432.00 9991.00 9669.00 9209.00 9744.00 9590.00 9135.00 9666.00 9583.00 9127.00 9665.00 9566.00 9112.00 9644.00 9736.00 9273.00 9836.00 9743.00 9281.00 9848.00 9605.00 9149.00 9703.00 9584.00 9129.00 9694.00 9562.00 9108.00 9673.00 9636.00 9178.00 9740.00 9821.00 9354.00 9932.00 10044.00 9566.00 10169.00 10112.00 9631.00 10231.00 10260.00 9773.00 10374.00 10670.00 10163.00 10776.00 10755.00 10244.00 10854.00 10727.00 10218.00 10830.00 10862.00 10346.00 10961.00 10981.00 10459.00 11068.00 11125.00 10596.00 11212.00 11295.00 10758.00 11380.00 11458.00 10913.00 11539.00 11527.00 10980.00 11615.00 11314.00 10777.00 11413.00 11239.00 10706.00 11333.00 11153.00 10623.00 11270.00 11128.00 10600.00 11247.00 11285.00 10749.00 11398.00 11303.00 10766.00 11429.00 11294.00 10758.00 11409.00 11498.00 10951.00 11608.00 11741.00 11184.00 11866.00 11959.00 11391.00 12068.00 11845.00 11282.00 11956.00 11892.00 11327.00 11993.00 11929.00 11363.00 12023.00 11803.00 11242.00 11890.00 11976.00 11407.00 12068.00 12088.00 11513.00 12183.00 12227.00 11646.00 12328.00 12563.00 11966.00 12661.00 12451.00 11860.00 12553.00 12630.00 12030.00 12738.00 12822.00 12213.00 12922.00 12861.00 12250.00 12982.00 12978.00 12361.00 13113.00 13134.00 12510.00 13281.00 13123.00 12500.00 13270.00 13153.00 12528.00 13315.00 13222.00 12594.00 13384.00 13353.00 12718.00 13512.00 13461.00 12821.00 13626.00 13481.00 12841.00 13655.00 13701.00 13050.00 13878.00 13961.00 13298.00 14202.00 13838.00 13181.00 14127.00 13896.00 13236.00 14208.00 13945.00 13282.00 14250.00 14044.00 13377.00 14351.00 13774.00 13120.00 14100.00 13862.00 13204.00 14178.00 13908.00 13247.00 14223.00 13743.00 13090.00 14098.00 13682.00 13032.00 14053.00 13590.00 12945.00 13992.00 13563.00 12919.00 13985.00 13730.00 13078.00 14148.00 13769.00 13115.00 14200.00 13785.00 13130.00 14199.00 13731.00 13079.00 14130.00 13650.00 13002.00 14084.00 13790.00 13135.00 14254.00 13965.00 13301.00 14442.00 13916.00 13255.00 14401.00 13905.00 13244.00 14393.00 14206.00 13532.00 14693.00 14307.00 13628.00 14826.00 14525.00 13835.00 15041.00 14626.00 13932.00 15136.00 14707.00 14008.00 15236.00 14975.00 14263.00 15486.00 15278.00 14553.00 15774.00 15549.00 14810.00 16033.00 15684.00 14939.00 16172.00 15769.00 15020.00 16253.00 15670.00 14925.00 16185.00 15775.00 15025.00 16282.00 15820.00 15069.00 16344.00 16183.00 15414.00 16710.00 16338.00 15562.00 16902.00 16509.00 15725.00 17100.00 16843.00 16043.00 17457.00 16632.00 15842.00 17216.00 16521.00 15736.00 17106.00 16622.00 15832.00 17245.00 16756.00 15960.00 17412.00 16520.00 15735.00 17123.00 16826.00 16027.00 17455.00 16954.00 16148.00 17603.00 17016.00 16208.00 17755.00 17180.00 16364.00 17970.00 17473.00 16643.00 18273.00 17729.00 16886.00 18569.00 17523.00 16691.00 18484.00 17504.00 16672.00 18478.00 17770.00 16926.00 18861.00 17791.00 16946.00 18878.00 18038.00 17182.00 19138.00 18026.00 17169.00 19123.00 18161.00 17298.00 19282.00 18451.00 17575.00 19640.00 18392.00 17519.00 19601.00 17806.00 16960.00 18942.00 08/31/03 17920.00 17073.00 19067.00 MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT 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 August 31, 1993, and reinvestment of income and capital gains distributions. 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 per amount outstanding and with at least one year to final maturity. Unlike the fund, indices are not investments, do not incur fees 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. 24 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- PROSPECTS FOR A STRONGER ECONOMY Given the economy's improvement during the second quarter, most economic analysts are anticipating that GDP growth will come in between 3% and 4% for the second half of this year. While such a scenario would inevitably put pressure on bond prices, we believe that the fund's relatively conservative positioning will allow it to post competitive returns even in a rising-rate environment. LEONARD A. APLET AND RICHARD R. CUTTS PORTFOLIO MANAGERS The fund offers the potential for current income and capital preservation but is subject to interest rate risk, credit risk and prepayment risk. ________________ 1 Lipper Inc., a widely respected data provider in the industry, calculates an average total return for mutual funds with similar investment objectives as those of the fund. PORTFOLIO COMPOSITION % of net assets August 31, 2003 Government issues 44.0 Corporate notes & bonds 40.8 Asset-backed securities 7.3 Collateralized mortgage obligations (CMO) 5.9 Cash, net receivables & payables 1.4 Commercial mortgage-backed securities 0.6 Because the fund is actively managed, there can be no guarantee the fund will continue to maintain this composition in the future. ----------------------------------------- PORTFOLIO QUALITY % of portfolio holdings August 31, 2003 (PIE CHART) Treasury/Agency 44.7 AAA 15.0 AA 9.9 A 14.7 BBB 10.0 BB 3.1 B 2.6 Ratings shown represent the highest rating assigned to a particular bond by one of the nationally recognized ratings agencies: Standard and Poor's Corporation, Moody's Investors Service, Inc. or Fitch Investors Service, Inc.
AVERAGE ANNUAL TOTAL RETURN As of August 31, 2003 (%) CLASS A CLASS B CLASS D CLASS Z - -------------------------------------------------------------------------------------------------------------------------- Inception date 11/1/02 11/1/02 11/1/02 2/25/83 - -------------------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE - -------------------------------------------------------------------------------------------------------------------------- 8-month (cumulative) 0.84 -3.92 0.34 -4.59 0.51 -1.50 1.26 - -------------------------------------------------------------------------------------------------------------------------- 1-year 2.54 -2.31 1.90 -3.04 2.10 0.07 3.06 - -------------------------------------------------------------------------------------------------------------------------- 5-year 5.52 4.49 5.39 5.07 5.43 5.21 5.62 - -------------------------------------------------------------------------------------------------------------------------- 10-year 6.01 5.49 5.94 5.94 5.96 5.86 6.06 - --------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN As of June 30, 2003 (%) Class A Class B Class D Class Z - -------------------------------------------------------------------------------------------------------------------------- Inception date 11/1/02 11/1/02 11/1/02 2/25/83 - -------------------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE - -------------------------------------------------------------------------------------------------------------------------- 8-month (cumulative) 4.96 -0.03 4.43 -0.57 4.58 2.52 5.37 - -------------------------------------------------------------------------------------------------------------------------- 1-year 8.09 2.96 7.54 2.54 7.70 5.66 8.51 - -------------------------------------------------------------------------------------------------------------------------- 5-year 6.45 5.42 6.34 6.02 6.37 6.15 6.53 - -------------------------------------------------------------------------------------------------------------------------- 10-year 6.57 6.06 6.52 6.52 6.54 6.43 6.62 - --------------------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions, if any. The "with sales charge" returns include the maximum 4.75% charge 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 D sales charge of 1% which also carries a CDSC of 1% that is applied to shares sold within the first year after they are purchased. Effective October 13, 2003, class D shares are closed to all new investors and new accounts. Existing class D shareholders will be able to make additional purchases at any time. In addition, class D sales charge of 1% is waived after October 13, 2003. 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. Classes A, B and D (newer class shares) share performance information includes returns of the fund's class Z shares (the oldest existing fund class) for periods prior to the inception of the newer class shares. These class Z share returns are not restated to reflect any differences in expenses (e.g., Rule 12b-1 fees) between class Z shares and the newer class shares. If difference in expenses had been reflected, the returns shown for periods prior to the inception of classes A, B and D would have been lower. 25 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA NATIONAL MUNICIPAL BOND FUND The Board of Directors for Columbia National Municipal Bond Fund approved the change of the fund's fiscal year end from December 31 to August 31. As a result, this report covers the eight-month period since the last annual report. The next report you receive will be a report for the six-month period through February 2004. For the eight-month period ended August 31, 2003, class A shares of Columbia National Municipal Bond Fund returned 0.75% without sales charge. Over the same period the Lehman Brothers Municipal Bond Index returned 0.93%. The fund outperformed the Lipper General Municipal Debt Funds Category average, which was 0.38%. 1 The fund's performance rose and fell relative to its benchmark as conditions either favored or punished its overweight in intermediate maturities. The fund outperformed during the first quarter of 2003 and during the month of July and underperformed during the second quarter of 2003 and the month of August. BOND PRICES STALLED, THEN MOVED HIGHER After a lackluster first quarter, bond prices rose strongly in the second quarter of 2003, buoyed by military success in Iraq and a strong pro-growth, anti-inflation stance from the Federal Reserve Board. During this period, municipal yields fell across all maturities, and intermediate and long maturities outperformed shorter issues. However, conditions changed markedly during July when Treasury yields rose by as much as one percentage point, and municipal yields rose by approximately three-quarters of a percentage point. Intermediate-term maturities experienced the greatest increase in yield while short-term interest rates were relatively steady. The municipal market continues to experience solid demand, but issuance -- which had been heavy for most of the period -- lightened somewhat during July and August. Economic growth and the progress of the recovery remained disappointing. As in any economic slowdown, municipalities experienced a deterioration in their finances as state and local tax receipts continued to be down from prior years. Many states are on watch for credit downgrades with major ratings agencies. This negative outlook reflects a decline in state revenues, which has resulted from the economic downturn, and a stubbornly high unemployment rate. A POSITIVE OUTLOOK ON ECONOMIC GROWTH AND MUNICIPAL FINANCES Despite recently lowered income tax rates, we believe municipals remain attractive, especially for highly-taxed investors. And, we expect PERFORMANCE OF A $10,000 INVESTMENT 2/24/99 - 8/31/03 WITHOUT SALES CHARGE WITH SALES CHARGE -------------------- ----------------- Class A $ 12,296 $ 11,711 Class B 12,221 12,021 Class D 12,252 12,131 Class Z 12,331 n/a --------------------------------- GROWTH OF $10,000 SINCE INCEPTION (MOUNTAIN CHART) CLASS A SHARES CLASS A SHARES LEHMAN BROTHERS WITHOUT SALES CHARGE WITH SALES CHARGE MUNICIPAL BOND INDEX -------------------- ----------------- -------------------- 02/24/99 $10000.00 $ 9525.00 $10000.00 9934.00 9462.00 10014.00 9920.00 9449.00 10039.00 9951.00 9478.00 9981.00 9893.00 9423.00 9837.00 9733.00 9271.00 9872.00 9768.00 9304.00 9794.00 9671.00 9212.00 9797.00 9675.00 9216.00 9692.00 9567.00 9112.00 9794.00 9674.00 9214.00 9721.00 9608.00 9152.00 9678.00 9543.00 9089.00 9790.00 9641.00 9183.00 10004.00 9868.00 9399.00 9945.00 9791.00 9326.00 9893.00 9714.00 9253.00 10155.00 9985.00 9511.00 10296.00 10110.00 9630.00 10455.00 10267.00 9779.00 10401.00 10209.00 9724.00 10514.00 10336.00 9845.00 10594.00 10407.00 9913.00 10856.00 10654.00 10148.00 10963.00 10749.00 10238.00 10998.00 10765.00 10253.00 11097.00 10861.00 10345.00 10977.00 10737.00 10227.00 11096.00 10844.00 10329.00 11170.00 10918.00 10399.00 11335.00 11082.00 10555.00 11522.00 11256.00 10721.00 11483.00 11216.00 10684.00 11620.00 11346.00 10807.00 11522.00 11217.00 10684.00 11413.00 11097.00 10570.00 11610.00 11297.00 10760.00 11750.00 11426.00 10883.00 11519.00 11205.00 10673.00 11744.00 11454.00 10910.00 11816.00 11517.00 10970.00 11941.00 11649.00 11096.00 12095.00 11818.00 11257.00 12240.00 11952.00 11384.00 12508.00 12236.00 11655.00 12300.00 12017.00 11446.00 12249.00 11950.00 11382.00 12507.00 12209.00 11629.00 12476.00 12137.00 11561.00 12651.00 12328.00 11742.00 12658.00 12339.00 11753.00 12742.00 12431.00 11841.00 13040.00 12733.00 12129.00 12985.00 12665.00 12063.00 12531.00 12210.00 11630.00 12626.00 08/31/03 12296.00 11711.00 MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT 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 February 24,1999 and reinvestment of income and capital gains distributions. The Lehman Brothers Municipal Bond Index is an unmanaged index that tracks the performance of the municipal bond market. Unlike the fund, indexes are not investments and do not incur fees and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. Index performance is from February 28, 1999. 26 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- economic growth -- and therefore municipal finances -- to continue to improve. As always, the fund is managed to generate strong risk-adjusted long-term total return, taking opportunities to extend the maturity of holdings from very short-term issues out to intermediate issues, and maintaining an intermediate average maturity of 7 to 10 years. The fund continues to focus on high-quality issues diversified nationally across both states and sectors. GRETA R. CLAPP PORTFOLIO MANAGER The fund offers the potential for current tax-free income and capital preservation but is subject to interest rate risk, credit risk, political risk and geographic risk. Interest income from certain tax-exempt bonds may be subject to the federal alternative minimum tax for individuals and corporations. ____________________ 1 Lipper Inc., a widely respected data provider in the industry, calculates an average total return for mutual funds with similar investment objectives as those of the fund. TOP TEN STATES % of net assets August 31, 2003 Washington 14.5 Oregon 14.2 Illinois 12.3 Texas 9.0 Michigan 4.8 Tennessee 4.0 Indiana 4.0 Wisconsin 3.7 New York 3.5 Louisiana 3.5 Because the fund is actively managed, there can be no guarantee the fund will continue to maintain this composition in these states in the future. --------------------------------------- PORTFOLIO QUALITY % of portfolio holdings August 31, 2003 (PIE CHART) Aaa 61.2 Aa 14.9 A 7.1 Baa 2.4 Not Rated 14.4 Ratings shown represent the highest rating assigned to a particular bond by one of the nationally-recognized ratings agencies: Standard and Poor's Corporation, Moody's Investors Service, Inc. or Fitch Investors Service, Inc.
AVERAGE ANNUAL TOTAL RETURN As of August 31, 2003 (%) CLASS A CLASS B CLASS D CLASS Z - ---------------------------------------------------------------------------------------------------------------- Inception date 11/1/02 11/1/02 11/1/02 2/24/99 - ---------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE - ---------------------------------------------------------------------------------------------------------------- 8-month (cumulative) 0.75 -4.04 0.25 -4.67 0.47 -1.48 1.00 - ---------------------------------------------------------------------------------------------------------------- 1-year 2.91 -1.98 2.28 -2.66 2.54 0.57 3.20 - ---------------------------------------------------------------------------------------------------------------- Life 4.68 3.56 4.54 4.16 4.60 4.37 4.75 - ----------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN As of June 30, 2003 (%) CLASS A CLASS B CLASS D CLASS Z - ---------------------------------------------------------------------------------------------------------------- Inception date 11/1/02 11/1/02 11/1/02 2/24/99 - ---------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE - ---------------------------------------------------------------------------------------------------------------- 8-month (cumulative) 5.38 0.37 4.87 -0.13 5.09 3.08 5.67 - ---------------------------------------------------------------------------------------------------------------- 1-year 8.70 3.54 8.18 3.18 8.41 6.35 9.00 - ---------------------------------------------------------------------------------------------------------------- Life 5.58 4.40 5.46 5.07 5.51 5.27 5.64 - ----------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions, if any. The "with sales charge" returns include the maximum 4.75% charge 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 D sales charge of 1% which also carries a CDSC of 1% that is applied to shares sold within the first year after they are purchased. Effective October 13, 2003, class D shares are closed to all new investors and new accounts. Existing class D shareholders will be able to make additional purchases at any time. In addition, class D sales charge of 1% is waived after October 13, 2003. 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. Classes A, B, and D (newer class shares) share performance information includes returns of the fund's class Z shares (the oldest existing fund class) for periods prior to the inception of the newer class shares. These class Z share returns are not restated to reflect any expense differential (e.g., Rule 12b-1 fees) between class Z shares and the newer class shares. Had the expense differential been reflected, the returns for the periods prior to the inception of classes A, B and D would have been lower. 27 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA OREGON MUNICIPAL BOND FUND The Board of Directors for Columbia Oregon Municipal Bond Fund approved the change of the fund's fiscal year end from December 31 to August 31. As a result, this report covers the eight-month period since the last annual report. The next report you receive will be a report for the six-month period through February 2004. For the eight-month period ended August 31, 2003, class A shares of Columbia Oregon Municipal Bond Fund returned 0.56% without sales charge. Over the same period the Lehman Brothers General Obligation Bond Index returned 1.29%. The fund's return fell just short of the Lipper Oregon Municipal Debt Funds Category average, which was 0.76%. 1 The fund's performance over the eight-month period rose and fell relative to its benchmark as conditions either favored or punished its overweight in intermediate maturities. The fund outperformed during the first quarter of 2003 and the month of July and underperformed during the second quarter of 2003 and the month of August. BOND PRICES STALLED, THEN MOVED HIGHER After a lackluster first quarter, bond prices rose strongly in the second quarter, buoyed by military success in Iraq and a strong pro-growth, anti-inflation stance from the Federal Reserve Board. During this period, municipal yields fell across maturities, and intermediate and long maturities outperformed shorter issues. However, conditions changed markedly during July when Treasury yields rose by as much as one percentage point and municipal yields by three-quarters of a percentage point. Short rates were steady. The municipal market continues to experience solid demand, but issuance -- which had been heavy for most of the period -- lightened somewhat during July and August. Economic growth and the progress of the recovery remained disappointing. As in any economic slowdown, municipalities saw a deterioration in their finances as state and local tax receipts have been far below those of prior years. Many states are on watch for credit downgrades from major ratings agencies, including the general obligation debt of the State of Oregon. This negative outlook reflects a decline in state revenues, which has resulted from the economic downturn, as well as a stubbornly high unemployment rate. Depending on the measures taken by legislators to deal with the budget shortfall, the rating agencies could downgrade state debt from AA to A. Although we do not believe that such a downgrade would have a major impact on the price of bonds in the state, since AA-rated and A-rated debt trade similarly in the marketplace, prices would tend to decline slightly, all other factors being equal. A POSITIVE OUTLOOK ON ECONOMIC GROWTH AND MUNICIPAL FINANCES Despite recently lowered income tax rates, we believe municipals remain attractive, especially for highly-taxed investors. And, we expect economic growth -- and therefore municipal finances -- to continue to improve. As always, the fund is managed to generate strong risk-adjusted long-term total return. We will continue to look for opportunities to extend the maturity of PERFORMANCE OF A $10,000 INVESTMENT 8/31/93 - 8/31/03 WITHOUT SALES CHARGE WITH SALES CHARGE -------------------- ----------------- Class A $16,233 $15,457 Class B 16,135 16,135 Class D 16,186 16,023 Class Z 16,295 n/a ---------------------------- GROWTH OF $10,000 OVER 10 YEARS (MOUNTAIN CHART) LEHMAN BROTHERS CLASS A SHARES CLASS A SHARES GENERAL OBLIGATION WITHOUT SALES CHARGE WITH SALES CHARGE BOND INDEX -------------------- ----------------- ---------- 08/31/93 $10000.00 $ 9525.00 $10000.00 10113.00 9633.00 10106.00 10117.00 9636.00 10119.00 10048.00 9571.00 10050.00 10203.00 9718.00 10258.00 10295.00 9806.00 10377.00 10052.00 9574.00 10099.00 9692.00 9232.00 9728.00 9743.00 9281.00 9833.00 9813.00 9346.00 9908.00 9765.00 9302.00 9849.00 9909.00 9438.00 10004.00 9946.00 9473.00 10047.00 9814.00 9348.00 9906.00 9693.00 9232.00 9763.00 9536.00 9083.00 9610.00 9725.00 9263.00 9780.00 9959.00 9486.00 10012.00 10180.00 9696.00 10276.00 10287.00 9798.00 10416.00 10298.00 9809.00 10422.00 10551.00 10050.00 10734.00 10467.00 9970.00 10661.00 10557.00 10056.00 10784.00 10691.00 10183.00 10921.00 10763.00 10252.00 10991.00 10889.00 10371.00 11117.00 11040.00 10516.00 11273.00 11104.00 10577.00 11362.00 11168.00 10638.00 11473.00 11113.00 10585.00 11420.00 10996.00 10474.00 11293.00 10951.00 10431.00 11254.00 10943.00 10423.00 11236.00 11053.00 10528.00 11349.00 11145.00 10616.00 11456.00 11147.00 10617.00 11455.00 11276.00 10740.00 11594.00 11389.00 10848.00 11729.00 11566.00 11017.00 11947.00 11520.00 10973.00 11899.00 11550.00 11001.00 11931.00 11642.00 11089.00 12040.00 11519.00 10972.00 11885.00 11595.00 11044.00 11977.00 11731.00 11173.00 12156.00 11836.00 11274.00 12287.00 12138.00 11562.00 12605.00 12060.00 11488.00 12494.00 12187.00 11608.00 12637.00 12247.00 11665.00 12706.00 12304.00 11720.00 12767.00 12483.00 11890.00 12949.00 12603.00 12004.00 13082.00 12587.00 11990.00 13092.00 12577.00 11980.00 13104.00 12535.00 11939.00 13035.00 12716.00 12112.00 13250.00 12744.00 12139.00 13298.00 12774.00 12167.00 13328.00 12967.00 12351.00 13539.00 13127.00 12504.00 13719.00 13105.00 12483.00 13722.00 13144.00 12520.00 13767.00 13178.00 12553.00 13812.00 13345.00 12711.00 13993.00 13242.00 12613.00 13922.00 13250.00 12620.00 13927.00 13288.00 12657.00 13965.00 13167.00 12542.00 13887.00 12980.00 12364.00 13683.00 13031.00 12412.00 13736.00 12919.00 12305.00 13655.00 12925.00 12311.00 13667.00 12792.00 12185.00 13550.00 12920.00 12306.00 13688.00 12828.00 12219.00 13602.00 12749.00 12143.00 13551.00 12856.00 12245.00 13687.00 13123.00 12500.00 13963.00 13052.00 12432.00 13892.00 12971.00 12355.00 13818.00 13285.00 12654.00 14175.00 13466.00 12826.00 14362.00 13671.00 13021.00 14567.00 13598.00 12952.00 14495.00 13747.00 13094.00 14647.00 13836.00 13179.00 14749.00 14146.00 13474.00 15097.00 14307.00 13627.00 15261.00 14347.00 13666.00 15306.00 14463.00 13776.00 15441.00 14307.00 13628.00 15282.00 14460.00 13773.00 15436.00 14551.00 13860.00 15532.00 14752.00 14051.00 15753.00 14990.00 14278.00 16006.00 14949.00 14239.00 15971.00 15139.00 14420.00 16135.00 14965.00 14254.00 15993.00 14788.00 14086.00 15866.00 15029.00 14315.00 16126.00 15205.00 14483.00 16322.00 14932.00 14222.00 16011.00 15224.00 14501.00 16341.00 15320.00 14592.00 16430.00 15501.00 14765.00 16614.00 15709.00 14962.00 16819.00 15894.00 15139.00 17010.00 16242.00 15471.00 17356.00 15945.00 15187.00 17075.00 15824.00 15072.00 16991.00 16135.00 15369.00 17324.00 16072.00 15309.00 17295.00 16322.00 15546.00 17533.00 16308.00 15534.00 17567.00 16423.00 15643.00 17679.00 16812.00 16013.00 18070.00 16719.00 15925.00 17983.00 16123.00 15357.00 17386.00 08/31/03 16233.00 15457.00 17542.00 MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT 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 August 31,1993 and reinvestment of income and capital gains distributions. The Lehman Brothers General Obligation Bond Index is a unmanaged index that represents average market-weighted performance of general obligation securities that have been issued in the last five years with maturities greater than one year. Unlike the fund, indices are not investments, do not incur fees 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. 28 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- holdings from very short-term issues out to intermediate issues, maintaining an intermediate average maturity of 7 to 10 years. The fund continues to focus on high quality issues diversified across both counties and sectors within the State of Oregon. GRETA R. CLAPP PORTFOLIO MANAGER The fund offers the potential for current tax-free income and capital preservation but is subject to interest rate risk, credit risk and political risk. Single-state municipal bond funds pose additional risks due to limited geographic diversification. Interest income from certain tax-exempt bonds may be subject to the federal alternative minimum tax for individuals and corporations. _________________ 1 Lipper Inc., a widely respected data provider in the industry, calculates an average total return for mutual funds with similar investment objectives as those of the fund. PORTFOLIO COMPOSITION % of net assets August 31, 2003 (unaudited) Revenue 35.0 Insured revenue 20.1 General obligations 18.6 Insured general obligations 13.9 State of Oregon general obligations 5.1 Other bonds 4.8 Cash, net receivables & payables 1.8 Pre-refunded bonds 0.5 U.S. territories bonds 0.2 ---------------------------------- PORTFOLIO QUALITY % of portfolio holdings August 31, 2003 (PIE CHART) Aaa 37.6 Aa 39.7 A 7.4 Baa 4.6 Not Rated 10.7 Ratings shown represent the highest rating assigned to a particular bond by one of the nationally-recognized ratings agencies: Standard and Poor's Corporation, Moody's Investors Service, Inc. or Fitch Investors Service, Inc.
AVERAGE ANNUAL TOTAL RETURN As of August 31, 2003 (%) CLASS A CLASS B CLASS D CLASS Z - -------------------------------------------------------------------------------------------------------------------- Inception date 11/1/02 11/1/02 11/1/02 7/2/84 - -------------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE - -------------------------------------------------------------------------------------------------------------------- 8-month (cumulative) 0.56 -4.21 0.05 -4.85 0.32 -1.65 0.83 - -------------------------------------------------------------------------------------------------------------------- 1-year 2.09 -2.79 1.47 -3.40 1.79 -0.21 2.48 - -------------------------------------------------------------------------------------------------------------------- 5-year 4.59 3.58 4.47 4.14 4.53 4.32 4.67 - -------------------------------------------------------------------------------------------------------------------- 10-year 4.96 4.45 4.90 4.90 4.93 4.83 5.00 - --------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN As of June 30, 2003 (%) CLASS A CLASS B CLASS D CLASS Z - -------------------------------------------------------------------------------------------------------------------- Inception date 11/1/02 11/1/02 11/1/02 7/2/84 - -------------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE - -------------------------------------------------------------------------------------------------------------------- 8-month (cumulative) 4.85 -0.13 4.36 -0.64 4.62 2.58 5.18 - -------------------------------------------------------------------------------------------------------------------- 1-year 7.86 2.71 7.35 2.35 7.61 5.51 8.20 - -------------------------------------------------------------------------------------------------------------------- 5-year 5.59 4.57 5.49 5.16 5.54 5.32 5.65 - -------------------------------------------------------------------------------------------------------------------- 10-year 5.47 4.96 5.42 5.42 5.45 5.34 5.50 - --------------------------------------------------------------------------------------------------------------------
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 assume reinvestment of distributions, if any. The "with sales charge" returns include the maximum 4.75% charge 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 D sales charge of 1% which also carries a CDSC of 1% that is applied to shares sold within the first year after they are purchased. Effective October 13, 2003, class D shares are closed to all new investors and new accounts. Existing class D shareholders will be able to make additional purchases at any time. In addition, class D sales charge of 1% is waived after October 13, 2003. 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. Classes A, B, and D (newer class shares) share performance information includes returns of the fund's class Z shares (the oldest existing fund class) for periods prior to the inception of the newer class shares. These class Z share returns are not restated to reflect any expense differential (e.g., Rule 12b-1 fees) between class Z shares and the newer class shares. Had the expense differential been reflected, the returns for the periods prior to the inception of classes A, B and D would have been lower. 29 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND The Board of Directors for Columbia High Yield Fund approved the change of the fund's fiscal year end from December 31 to August 31. As a result, this report covers the eight-month period since the last annual report. The next report you receive will be a report for the six-month period through February 2004. For the eight-month period ended August 31, 2003, Columbia High Yield Fund class A shares returned 5.81% without sales charge. The fund lagged the Merrill Lynch US High Yield, Cash Pay Only Index, which returned 17.08%. The fund's emphasis on high quality, high-yield bonds proved detrimental to performance as lower quality bonds rallied strongly early in the period. In the cable industry, the fund lagged because we did not own a position in Charter Communications, the industry's largest issuer and also one of its strongest performers during the period. However, our investments in CSC Holdings (1.1% of net assets) 1 and Mediacom (0.8% of net assets), contributed to the fund's positive performance. In the cable industry, we sold our position in TCI International, reduced our position in MediaCom and purchased a position in DirecTV Holdings (1.4% of net assets). Satellite TV continues to take market share from cable companies so we wanted to gain exposure to this segment of the market, while reducing our exposure to the traditional cable companies. CREDIT RESEARCH DRIVES SECURITY SELECTION We focused our research on identifying companies with strong business prospects and improving margins. In this regard, we added to our position in Corrections Corp. of America, the country's largest provider of corrections management (1.9% of net assets). Outsourcing has proven to be a successful way to manage rising costs associated with the nation's prison systems. We also increased our exposure in the aerospace industry with the purchase of TD Funding (1.0% of net assets). In the final months of the period, we added positions in Acetex, a Canadian chemical manufacturer, and Wabtec (formerly Westinghouse Air Brake), an equipment producer for locomotives, freight cars and passenger transit vehicles (0.6% and 0.6% of net assets, respectively). We funded these additions to the portfolio by eliminating selected positions from the portfolio. For example, in the hotel and leisure sector, we sold both Six Flags and Host Marriott because we believed that they had achieved fair value. We also eliminated our position in Winn-Dixie Stores, a food retailer located in the southeastern United States. In our opinion, Winn-Dixie lacks a clear business plan in the face of declining market share. Concerns over increased industry competition also prompted us to sell Playtex Products, in the consumer goods sector. Finally, we eliminated our position in ConStar International, one of North America's largest plastic container manufacturers, following disappointing performance. PERFORMANCE OF A $10,000 INVESTMENT 10/01/93 - 8/31/03 WITHOUT SALES CHARGE WITH SALES CHARGE -------------------- ----------------- Class A $19,105 $18,195 Class B 18,965 18,965 Class D 18,996 18,808 Class Z 19,160 n/a -------------------------- GROWTH OF $10,000 SINCE INCEPTION (MOUNTAIN CHART) MERRILL LYNCH CLASS A SHARES CLASS A SHARES US HIGH YIELD, WITHOUT SALES CHARGE WITH SALES CHARGE CASH PAY ONLY INDEX -------------------- ----------------- ------------------- 10/01/93 $10000.00 $ 9525.00 $10000.00 9992.00 9517.00 10180.00 10015.00 9539.00 10236.00 10112.00 9632.00 10338.00 10251.00 9764.00 10565.00 10221.00 9735.00 10489.00 9909.00 9439.00 10147.00 9738.00 9275.00 10028.00 9819.00 9352.00 9992.00 9845.00 9377.00 10029.00 9905.00 9435.00 10099.00 9968.00 9494.00 10169.00 10017.00 9542.00 10165.00 10028.00 9552.00 10190.00 9917.00 9446.00 10104.00 10019.00 9543.00 10216.00 10176.00 9692.00 10360.00 10426.00 9931.00 10683.00 10521.00 10021.00 10831.00 10756.00 10245.00 11085.00 11029.00 10505.00 11431.00 11105.00 10577.00 11518.00 11258.00 10723.00 11649.00 11278.00 10742.00 11720.00 11461.00 10916.00 11854.00 11612.00 11061.00 11938.00 11745.00 11187.00 12055.00 11934.00 11367.00 12249.00 12099.00 11525.00 12442.00 12139.00 11563.00 12461.00 12002.00 11432.00 12427.00 11985.00 11416.00 12434.00 11996.00 11426.00 12523.00 12030.00 11458.00 12598.00 12119.00 11543.00 12684.00 12349.00 11763.00 12815.00 12563.00 11966.00 13090.00 12701.00 12098.00 13234.00 12968.00 12352.00 13501.00 13060.00 12439.00 13605.00 13175.00 12549.00 13710.00 13375.00 12740.00 13902.00 13173.00 12547.00 13748.00 13328.00 12695.00 13904.00 13648.00 13000.00 14185.00 13820.00 13164.00 14401.00 14192.00 13518.00 14747.00 14179.00 13506.00 14721.00 14369.00 13687.00 14966.00 14356.00 13674.00 15065.00 14520.00 13830.00 15208.00 14717.00 14018.00 15352.00 14957.00 14247.00 15581.00 15046.00 14331.00 15645.00 15139.00 14420.00 15779.00 15215.00 14492.00 15854.00 15262.00 14537.00 15965.00 15370.00 14640.00 16044.00 15558.00 14819.00 16136.00 14940.00 14230.00 15439.00 15204.00 14482.00 15470.00 15131.00 14413.00 15216.00 15631.00 14888.00 15908.00 15635.00 14893.00 15913.00 15828.00 15076.00 16071.00 15741.00 14993.00 15948.00 15928.00 15171.00 16086.00 16041.00 15279.00 16337.00 15834.00 15082.00 16224.00 15785.00 15035.00 16193.00 15769.00 15020.00 16217.00 15681.00 14936.00 16052.00 15664.00 14920.00 15991.00 15667.00 14923.00 15897.00 15922.00 15166.00 16078.00 16007.00 15246.00 16161.00 15925.00 15169.00 16081.00 15939.00 15182.00 16095.00 15848.00 15096.00 15870.00 15921.00 15165.00 15874.00 15912.00 15156.00 15700.00 16246.00 15474.00 15968.00 16392.00 15614.00 16083.00 16669.00 15877.00 16279.00 16669.00 15877.00 16185.00 16529.00 15744.00 15711.00 16293.00 15519.00 15219.00 16744.00 15949.00 15549.00 17318.00 16496.00 16476.00 17464.00 16634.00 16736.00 17373.00 16548.00 16515.00 17331.00 16508.00 16335.00 17444.00 16615.00 16649.00 17291.00 16469.00 16306.00 17500.00 16669.00 16559.00 17727.00 16885.00 16719.00 17034.00 16225.00 15648.00 17618.00 16782.00 16108.00 18080.00 17221.00 16631.00 17856.00 17008.00 16513.00 17963.00 17110.00 16606.00 17799.00 16954.00 16446.00 17967.00 17113.00 16838.00 18051.00 17194.00 17105.00 18015.00 17159.00 17013.00 17558.00 16724.00 15803.00 17266.00 16446.00 15174.00 17534.00 16701.00 15554.00 17465.00 16636.00 15314.00 17443.00 16614.00 15175.00 17935.00 17083.00 16079.00 18053.00 17195.00 16324.00 18210.00 17345.00 16794.00 18354.00 17482.00 17011.00 18669.00 17783.00 17451.00 19093.00 18186.00 18432.00 19109.00 18201.00 18631.00 19342.00 18423.00 19140.00 18974.00 18073.00 18866.00 08/31/03 19105.00 18195.00 19118.00 MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT 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 Merrill Lynch U.S. High Yield, Cash Pay Only Index is an unmanaged index of non-investment-grade corporate bonds. Unlike the fund, indices are not investments, do not incur fees or expenses, and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. Index performance is from October 1, 1993. 30 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- A CONTINUING FOCUS ON HIGHER QUALITY We believe that lower-quality, high-yield issues may continue to rally as the economy strengthens and fewer issues default. However, we remain concerned about the long-term prospects for these companies and their ability to sustain the level of performance exhibited over the past six months. We expect to continue our focus on higher quality issues--those with strong balance sheets, solid operations and higher credit ratings. JEFFREY L. RIPPEY AND KURT M. HAVNAER PORTFOLIO MANAGERS High-yield investing offers the potential for high income and attractive total returns, but also involves certain risks, including credit risks associated with lower-rated bonds, and interest rate risks. _____________________ 1 Holdings are disclosed as of August 31, 2003 and are subject to change. TOP FIVE SECTORS % of net assets August 31, 2003 Energy 10.1 Health care 8.3 Casinos & gaming 6.3 Cable TV 5.8 Services 5.3 Because the fund is actively managed, there can be no guarantee the fund will continue to maintain these sectors in the future. --------------------------------- PORTFOLIO QUALITY % of portfolio holdings August 31, 2003 (PIE CHART) Ba 55.9 B 42.4 Baa 1.7 Ratings shown represent the highest rating assigned to a particular bond by one of the nationally-recognized ratings agencies: Standard and Poor's Corporation, Moody's Investors Service, Inc. or Fitch Investors Service, Inc.
AVERAGE ANNUAL TOTAL RETURN As of August 31, 2003 (%) CLASS A CLASS B CLASS D CLASS Z - ---------------------------------------------------------------------------------------------------------------- Inception date 11/1/02 11/1/02 11/1/02 10/1/93 - ---------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE - ---------------------------------------------------------------------------------------------------------------- 8-month (cumulative) 5.81 0.75 5.20 0.20 5.35 3.36 6.04 - ---------------------------------------------------------------------------------------------------------------- 1-year 8.94 3.82 8.14 3.14 8.32 6.30 9.26 - -------------------------------------------------------------------------------------------------------------- 5-year 5.04 4.03 4.88 4.59 4.92 4.70 5.10 - ---------------------------------------------------------------------------------------------------------------- Life 6.75 6.22 6.67 6.67 6.69 6.58 6.78 - ----------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN As of June 30, 2003 (%) CLASS A CLASS B CLASS D CLASS Z - ---------------------------------------------------------------------------------------------------------------- Inception date 11/1/02 11/1/02 11/1/02 10/1/93 - ---------------------------------------------------------------------------------------------------------------- WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE SALES CHARGE - ---------------------------------------------------------------------------------------------------------------- 8-month (cumulative) 10.89 5.59 10.24 5.24 10.38 8.32 11.17 - ---------------------------------------------------------------------------------------------------------------- 1-year 10.17 4.94 9.53 4.53 9.67 7.52 10.45 - ---------------------------------------------------------------------------------------------------------------- 5-year 4.71 3.70 4.58 4.29 4.61 4.40 4.76 - ---------------------------------------------------------------------------------------------------------------- Life 7.01 6.47 6.94 6.94 6.96 6.85 7.03 - ----------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future investment results. The principal value and investment returns will fluctuate, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions, if any. The "with sales charge" returns include the maximum 4.75% charge 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 D sales charge of 1% which also carries a CDSC of 1% that is applied to shares sold within the first year after they are purchased. Effective October 13, 2003, class D shares are closed to all new investors and new accounts. Existing class D shareholders will be able to make additional purchases at any time. In addition, class D sales charge of 1% is waived after October 13, 2003. 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. Classes A, B, and D (newer class shares) share performance information includes returns of the fund's class Z shares (the oldest existing fund class) for periods prior to the inception of the newer class shares. These class Z share returns are not restated to reflect any expense differential (e.g., Rule 12b-1 fees) between class Z shares and the newer class shares. Had the expenses differential been reflected, the returns for the periods prior to the inception of classes A, B and D would have been lower. 31 INVESTMENT REVIEWS - -------------------------------------------------------------------------------- COLUMBIA DAILY INCOME COMPANY PERFORMANCE OF A $10,000 INVESTMENT 8/31/93 - 8/31/03 WITHOUT SALES CHARGE ------------ Class Z $14,949 --------------------------- GROWTH OF $10,000 OVER 10 YEARS (MOUNTAIN CHART) CONSUMER CLASS Z SHARES PRICE INDEX -------------- ----------- 08/31/93 $10000.00 $10000.00 10020.00 10021.00 10041.00 10062.00 10061.00 10069.00 10082.00 10069.00 10104.00 10096.00 10124.00 10131.00 10147.00 10165.00 10171.00 10179.00 10200.00 10186.00 10230.00 10221.00 10263.00 10249.00 10298.00 10290.00 10333.00 10317.00 10371.00 10325.00 10411.00 10338.00 10455.00 10338.00 10502.00 10379.00 10547.00 10421.00 10596.00 10455.00 10645.00 10490.00 10695.00 10511.00 10743.00 10532.00 10792.00 10532.00 10841.00 10559.00 10888.00 10580.00 10936.00 10615.00 10983.00 10608.00 11031.00 10600.00 11078.00 10663.00 11122.00 10697.00 11166.00 10753.00 11210.00 10795.00 11254.00 10815.00 11298.00 10822.00 11345.00 10842.00 11391.00 10863.00 11437.00 10898.00 11484.00 10932.00 11530.00 10953.00 11577.00 10953.00 11624.00 10988.00 11667.00 11022.00 11715.00 11050.00 11762.00 11064.00 11811.00 11058.00 11861.00 11071.00 11912.00 11084.00 11963.00 11105.00 12012.00 11133.00 12064.00 11161.00 12115.00 11154.00 12168.00 11141.00 12221.00 11162.00 12269.00 11183.00 12321.00 11204.00 12371.00 11225.00 12423.00 11245.00 12474.00 11258.00 12528.00 11272.00 12582.00 11285.00 12634.00 11299.00 12687.00 11326.00 12737.00 11326.00 12788.00 11319.00 12838.00 11346.00 12881.00 11360.00 12929.00 11394.00 12976.00 11477.00 13024.00 11477.00 13070.00 11477.00 13120.00 11512.00 13171.00 11539.00 13223.00 11595.00 13277.00 11615.00 13331.00 11622.00 13391.00 11622.00 13453.00 11650.00 13509.00 11719.00 13572.00 11815.00 13633.00 11822.00 13699.00 11829.00 13767.00 11898.00 13838.00 11918.00 13910.00 11932.00 13980.00 11995.00 14052.00 12015.00 14123.00 12022.00 14195.00 12015.00 14266.00 12091.00 14324.00 12139.00 14384.00 12167.00 14437.00 12216.00 14487.00 12271.00 14531.00 12291.00 14574.00 12257.00 14613.00 12257.00 14648.00 12312.00 14677.00 12270.00 14701.00 12249.00 14721.00 12202.00 14739.00 12230.00 14754.00 12279.00 14770.00 12347.00 14785.00 12417.00 14800.00 12417.00 14814.00 12424.00 14829.00 12431.00 14844.00 12479.00 14857.00 12500.00 14871.00 12521.00 14883.00 12521.00 14895.00 12494.00 14903.00 12549.00 14911.00 12645.00 14918.00 12721.00 14926.00 12693.00 14935.00 12673.00 14942.00 12687.00 14948.00 12701.00 08/31/03 14949.00 12748.00 MUTUAL FUND PERFORMANCE CHANGES OVER TIME. PLEASE VISIT 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 August 31, 1993, and reinvestment of income and capital gains distributions. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency. Although the fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in the fund. PORTFOLIO HIGHLIGHTS 8/31/03 Seven day current yield 0.41% Seven day effective yield 0.41% Average days to maturity 38 The Board of Directors for Columbia Daily Income Company approved the change of the fund's fiscal year end from December 31 to August 31. As a result, this report covers the eight-month period since the last annual report. The next report you receive will be a report for the six-month period through February 2004. For the eight-month period ended August 31, 2003, Columbia Daily Income Company class Z shares returned 0.40%. Short-term interest rates were low throughout the period, and in June they were pushed even lower when the Federal Reserve Board cut the federal funds rate from 1.25% to 1.00%--a 45-year low. The federal funds rate is the interest rate that commercial banks charge each other on overnight loans. The Fed has sought to keep short-term rates low in order to stimulate the economy as well as to encourage long-term investment. While lower short-term rates have been welcomed by consumers and businesses, their effect on money market funds has been to bring returns on eligible portfolio securities to all-time lows. OPERATING WITHIN A LOW-RATE ENVIRONMENT Despite declining short-term rates, we have remained committed to our universe of government and corporate obligations bearing the highest possible ratings (A1/P1). During the summer we reduced our exposure to government agency credits in response to well-publicized management difficulties at Federal Home Loan Mortgage Corporation--"Freddie Mac." At the end of August, 20% of the portfolio was invested in government agency securities, down from 25% at the end of June. The remainder of the portfolio is invested in high-quality commercial paper. In an effort to extract as much income as possible from our investments, we extended the portfolio's average maturity during the period and worked to keep fund expenses low. If short-term rates rise going forward, we expect shareholders to benefit from the fund's ability to reinvest at higher rates. LEONARD A. APLET PORTFOLIO MANAGER There is a chance that the fund's investments may not keep pace with the rate of inflation over the long-term. Also, an investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency. Although the fund seeks to preserve the value of our investment at $1 per share, it is possible to lose money by investing in the fund. AVERAGE ANNUAL TOTAL RETURN As of August 31, 2003 (%) COLUMBIA CONSUMER PRICE DAILY INCOME COMPANY INDEX CLASS Z (INFLATION) - ---------------------------------------------------- 8-month 0.40 2.05 - ---------------------------------------------------- 1-year 0.75 2.16 - ---------------------------------------------------- 5-year 3.51 2.47 - ---------------------------------------------------- 10-year 4.10 2.46 - ---------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN As of June 30, 2003 (%) COLUMBIA CONSUMER PRICE DAILY INCOME COMPANY INDEX CLASS Z (INFLATION) - --------------------------------------------------------- 8-month 0.49 1.32 - --------------------------------------------------------- 1-year 0.87 2.11 - --------------------------------------------------------- 5-year 3.67 2.42 - --------------------------------------------------------- 10-year 4.14 2.44 - --------------------------------------------------------- 32 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA COMMON STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS A SHARES 2003(a) 2002(b) ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD .................... $ 14.91 $ 15.09 ------------ ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (c) ...................... 0.01 --(d) Net realized and unrealized gain (loss) on investments ......................................... 2.30 (0.11) ------------ ------------ Total from investment operations .................... 2.31 (0.11) ------------ ------------ LESS DISTRIBUTIONS: From net investment income ............................ -- (0.07) ------------ ------------ NET ASSET VALUE, END OF PERIOD .......................... $ 17.22 $ 14.91 ------------ ------------ TOTAL RETURN (e)(f) ..................................... 15.49% (0.71)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ................ $ 223 $ 32 Ratio of expenses to average net assets (g)(h) .......... 1.40% 1.32% Ratio of net investment income (loss) to average net assets (g)(h) .......................................... 0.08% (0.03)% Portfolio turnover rate ................................. 102%(f) 107%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class A shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Rounds to less than $0.01 per share. (e) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (f) 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. COLUMBIA COMMON STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS B SHARES 2003(a) 2002(b) ------------ ----------- NET ASSET VALUE, BEGINNING OF PERIOD ........ $ 14.91 $ 15.09 ------------ ----------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) ................... (0.09) (0.01) Net realized and unrealized gain (loss) on investments .................... 2.30 (0.12) ------------ ----------- Total from investment operations ........ 2.21 (0.13) ------------ ----------- LESS DISTRIBUTIONS: From net investment income ................ -- (0.05) NET ASSET VALUE, END OF PERIOD .............. $ 17.12 $ 14.91 ------------ ----------- TOTAL RETURN (d)(e) ......................... 14.82% (0.84)% ------------ ----------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .... $ 620 $ 109 Ratio of expenses to average net assets(f)(g) ................................ 2.36% 2.07% Ratio of net investment loss to average net assets (f)(g) .............................. (0.90)% (0.78)% Portfolio turnover rate ..................... 102%(e) 107% (a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class B shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Accompanying Notes to Financial Statements 33 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA COMMON STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS D SHARES 2003(a) 2002(b) ------------ ------------ Net asset value, beginning of period .................... $ 14.92 $ 15.09 ------------ ------------ Income from investment operations: Net investment loss (c) ............................... (0.12) (0.01) Net realized and unrealized gain (loss) on investments 2.31 (0.11) ------------ ------------ Total from investment operations ..................... 2.19 (0.12) ------------ ------------ Less distributions: From net investment income ............................ -- (0.05) ------------ ------------ Net asset value, end of period .......................... $ 17.11 $ 14.92 ------------ ------------ Total return (d)(e) ..................................... 14.68% (0.77)% Ratios/Supplemental data: Net assets, end of period (in thousands) ................ $ 112 $ 30 Ratio of expenses to average net assets (f)(g) .......... 2.61% 2.07% Ratio of net investment loss to average net assets (f)(g) (1.09)% (0.78)% Portfolio turnover rate ................................. 102%(e) 107%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class D shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. COLUMBIA COMMON STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED AUGUST 31, YEAR ENDED DECEMBER 31, CLASS Z SHARES 2003(a) 2002(b) 2001 2000 1999 1998 ------------ --------- --------- --------- ---------- ----------- NET ASSET VALUE, BEGINNING OF PERIOD .......... $ 14.91 $ 19.97 $ 24.34 $ 28.90 $ 24.40 $ 22.02 ------------ --------- --------- --------- ---------- ----------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) ................ 0.06(c) 0.07(c) 0.07 (0.01) 0.03 0.09 Net realized and unrealized gain (loss) on investments ...................... 2.29 (5.05) (4.35) (1.54) 6.25 5.68 ------------ --------- --------- --------- ---------- ----------- Total from investment operations ......... 2.35 (4.98) (4.28) (1.55) 6.28 5.77 ------------ --------- --------- --------- ---------- ----------- LESS DISTRIBUTIONS: From net investment income .................. -- (0.08) (0.07) -- (0.03) (0.13) From net realized gains ..................... -- -- (0.02) (3.01) (1.75) (3.26) ------------ --------- --------- --------- ---------- ----------- Total distributions ..................... -- (0.08) (0.09) (3.01) (1.78) (3.39) ------------ --------- --------- --------- ---------- ----------- NET ASSET VALUE, END OF PERIOD ................ $ 17.26 $ 14.91 $ 19.97 $ 24.34 $ 28.90 $ 24.40 ------------ --------- --------- --------- ---------- ----------- TOTAL RETURN (d) .............................. 15.76%(e) (24.92)% (17.60)% (5.73)% 25.76% 26.28% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ...... $ 427,669 $ 416,638 $ 681,397 $ 895,134 $ 959,910 $ 797,147 Ratio of expenses to average net assets (f) ... 0.94%(g) 0.86% 0.80% 0.75% 0.77% 0.80% Ratio of net investment income (loss) to average net assets (f) ............ 0.55%(g) 0.43% 0.32% (0.05)% 0.09% 0.56% Portfolio turnover rate ....................... 102%(e) 107% 114% 104% 97% 141%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were redesignated Class Z shares. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Accompanying Notes to Financial Statements 34 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA GROWTH FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS A SHARES 2003(a) 2002(b) ------------ ----------- NET ASSET VALUE, BEGINNING OF PERIOD .......... $ 20.83 $ 21.52 ------------ ----------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) ..................... (0.07) --(d) Net realized and unrealized gain (loss) on investments ............................... 3.85 (0.69) ------------ ----------- Total from investment operations ........ 3.78 (0.69) ------------ ----------- NET ASSET VALUE, END OF PERIOD ................ $ 24.61 $ 20.83 ------------ ----------- TOTAL RETURN (e)(f) ........................... 18.15% (3.21)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ...... $ 4,229 $ 3,077 Ratio of expenses to average net assets (g)(h) 1.33% 1.15% Ratio of net investment loss to average net assets (g)(h) ................................ (0.44)% (0.36)% Portfolio turnover rate ....................... 110%(f) 165% (a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class A shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Rounds to less than $0.01 per share. (e) Total return at net asset value assuming no initial sales charges 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. COLUMBIA GROWTH FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS B SHARES 2003(a) 2002(b) ------------ ------------- NET ASSET VALUE, BEGINNING OF PERIOD ........ $ 20.82 $ 21.52 ------------ ------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) ................... (0.19) (0.03) Net realized and unrealized gain (loss) on investments .................... 3.84 (0.67) ------------ ------------- Total from investment operations ....... 3.65 (0.70) ------------ ------------- NET ASSET VALUE, END OF PERIOD .............. $ 24.47 $ 20.82 ------------ ------------- TOTAL RETURN (d)(e) ......................... 17.53% (3.25)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .... $ 793 $ 114 Ratio of expenses to average net assets (f)(g) .............................. 2.11% 1.88% Ratio of net investment loss to average net assets (f)(g) .............................. (1.27)% (1.09)% Portfolio turnover rate ..................... 110%(e) 165% (a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class B shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming no contingent deferred sales charge. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Accompanying Notes to Financial Statements 35 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA GROWTH FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS D SHARES 2003(a) 2002(b) ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD ........ $ 20.82 $ 21.52 ------------ ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) ................... (0.17) (0.02) Net realized and unrealized gain (loss) on investments .................... 3.83 (0.68) ------------ ------------ Total from investment operations ....... 3.66 (0.70) ------------ ------------ NET ASSET VALUE, END OF PERIOD .............. $ 24.48 $ 20.82 ------------ ------------ TOTAL RETURN (d)(e) ......................... 17.58% (3.25)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .... $ 294 $ 103 Ratio of expenses to average net assets (f)(g) .............................. 2.02% 1.88% Ratio of net investment loss to average net assets (f)(g) ............................... (1.15)% (1.09)% Portfolio turnover rate ..................... 110%(e) 165% (a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class D shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming no initial sales charge or contingent deferred sales charge. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. COLUMBIA GROWTH FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS G SHARES 2003(a) 2002(b) ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD ........ $ 20.83 $ 21.52 ------------ ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) ................... (0.16) (0.03) Net realized and unrealized gain .......... (loss) on investments ................... 3.82 (0.66) ------------ ------------ Total from investment operations ....... 3.66 (0.69) ------------ ------------ NET ASSET VALUE, END OF PERIOD .............. $ 24.49 $ 20.83 ------------ ------------ TOTAL RETURN (d)(e) ......................... 17.57% (3.21)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .... $ 14,810 $ 13,705 Ratio of expenses to average net assets (f)(g) ............................. 2.00% 1.83% Ratio of net investment loss to average net assets (f)(g) ............................... (1.10)% (1.04)% Portfolio turnover rate ..................... 110%(e) 165% (a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class G shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming no contingent deferred sales charge. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Accompanying Notes to Financial Statements 36 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA GROWTH FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED AUGUST 31, YEAR ENDED DECEMBER 31, CLASS Z SHARES 2003(a) 2002(b) 2001 2000 1999 1998 ---------- --------- ----------- ----------- ----------- ----------- NET ASSET VALUE, BEGINNING OF PERIOD ....... $ 20.85 $ 31.35 $ 40.07 $ 48.91 $ 42.51 $ 34.34 ---------- --------- ----------- ----------- ----------- ----------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) ............ --(c)(d) (0.01)(c) (0.02) (0.08) (0.03) 0.03 Net realized and unrealized gain (loss) on investments ..... 3.85 (10.49) (8.55) (3.49) 11.09 10.39 ---------- --------- ----------- ----------- ----------- ----------- Total from investment operations ...... 3.85 (10.50) (8.57) (3.57) 11.06 10.42 ---------- --------- ----------- ----------- ----------- ----------- LESS DISTRIBUTIONS From net investment income .............. -- -- -- -- --(d) (0.08) From net realized gains ................. -- -- (0.15) (5.27) (4.66) (2.17) ---------- --------- ----------- ----------- ----------- ----------- Total distributions ................... -- -- (0.15) (5.27) (4.66) (2.25) ---------- --------- ----------- ----------- ----------- ----------- NET ASSET VALUE, END OF PERIOD ............. $ 24.70 $ 20.85 $ 31.35 $ 40.07 $ 48.91 $ 42.51 ---------- --------- ----------- ----------- ----------- ----------- TOTAL RETURN (e) ........................... 18.47%(f) (33.49)% (21.40)% (7.94)% 26.02% 30.34% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ... $ 909,611 $ 811,648 $ 1,325,844 $ 1,919,227 $ 2,160,739 $ 1,753,024 Ratio of expenses to average net assets (g) 0.88%(h) 0.82% 0.72% 0.65% 0.65% 0.68% Ratio of net investment income (loss) to average net assets (g) 0.01%(h) (0.03)% (0.07)% (0.18)% (0.07)% 0.21% Portfolio turnover rate .................... 110%(f) 165% 122% 114% 118% 105%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were redesignated Class Z shares. (c) Per share data was calculated using average shares outstanding during the period. (d) Rounds to less than $0.01 per share. (e) Total return at net asset value assuming all distributions reinvested. (f) 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. COLUMBIA INTERNATIONAL STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS A SHARES 2003(a) 2002(b) ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD ........ $ 10.05 $ 10.04 ------------ ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (c) .......... 0.04 (0.02) Net realized and unrealized gain on investments, foreign currency and foreign capital gains tax ............... 1.25 0.03 ------------ ------------ Total from investment operations ....... 1.29 0.01 ------------ ------------ NET ASSET VALUE, END OF PERIOD .............. $ 11.34 $ 10.05 ------------ ------------ TOTAL RETURN (d)(e) ......................... 12.84% 0.10% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .... $ 21,664 $ 20,178 Ratio of expenses to average net assets (f)(g) ............................. 1.90% 1.86% Ratio of net investment income (loss) to average net assets (f)(g) ................ 0.61% (0.39)% Portfolio turnover rate ..................... 43%(e) 96% (a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class A shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming no initial sales charge or contingent deferred sales charge. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Accompanying Notes to Financial Statements 37 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA INTERNATIONAL STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS B SHARES 2003(a) 2002(b) ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD ......... $ 10.02 $ 10.04 ------------ ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) .................... (0.03) (0.05) Net realized and unrealized gain on investments, foreign currency and foreign capital gains tax ................ 1.24 0.03 ------------ ------------ Total from investment operations ............. 1.21 (0.02) ------------ ------------ NET ASSET VALUE, END OF PERIOD ............... $ 11.23 $ 10.02 ------------ ------------ TOTAL RETURN (d)(e)(f) ....................... 12.08% (0.20)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ..... $ 10,316 $ 10,920 Ratio of expenses to average net assets (g)(h) 2.98% 3.64% Ratio of net investment loss to average net assets (g)(h) ................................ (0.47)% (2.17)% Waiver (h)(i) ................................ 0.11% 0.11% Portfolio turnover rate ...................... 43%(f) 96% (a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class B shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming no contingent deferred sales charge. (e) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. (i) Amounts represent contractual waivers of transfer agent fees. COLUMBIA INTERNATIONAL STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS D SHARES 2003(a) 2002(b) ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD ............... $ 10.02 $ 10.04 ------------ ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (c) ................. --(d) (0.04) Net realized and unrealized gain on investments, foreign currency and foreign capital gains tax .. 1.25 0.02 ------------ ------------ Total from investment operations ............... 1.25 (0.02) ------------ ------------ NET ASSET VALUE, END OF PERIOD ..................... $ 11.27 $ 10.02 ------------ ------------ TOTAL RETURN (e)(f)(g) ............................. 12.48% (0.20)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ........... $ 633 $ 542 Ratio of expenses to average net assets (h)(i) ..... 2.49% 3.48% Ratio of net investment income (loss) to average net assets (h)(i) .................................. 0.02% (2.01)% Waiver (i)(j) ...................................... 0.75% 0.75% Portfolio turnover rate ............................ 43%(g) 96%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class D shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Rounds to less than $0.01 per share. (e) Total return at net asset value assuming no initial sales charge or contingent deferred sales charge. (f) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (g) Not annualized. (h) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized. (j) Amounts represent contractual waivers of transfer agent fees. See Accompanying Notes to Financial Statements 38 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA INTERNATIONAL STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED AUGUST 31, YEAR ENDED DECEMBER 31, CLASS Z SHARES 2003(a) 2002(b) 2001 2000 1999 1998 ------------ --------- --------- --------- --------- --------- NET ASSET VALUE, BEGINNING OF PERIOD ........ $ 10.05 $ 12.03 $ 14.77 $ 22.81 $ 15.45 $ 13.70 ------------ --------- --------- --------- --------- --------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) ............. 0.07(c) --(c)(d) 0.01 (0.04) (0.05) --(d) Net realized and unrealized gain (loss) on investments, foreign currency and foreign capital gains tax ........... 1.27 (1.94) (2.74) (5.17) 9.00 1.76 ------------ --------- --------- --------- --------- --------- Total from investment operations ....... 1.34 (1.94) (2.73) (5.21) 8.95 1.76 ------------ --------- --------- --------- --------- --------- LESS DISTRIBUTIONS: From net investment income ............... -- (0.01) (0.01) -- -- -- From net realized gains .................. -- -- -- (2.83) (1.59) (0.01) Return of capital ........................ -- (0.03) -- -- -- -- ------------ --------- --------- --------- --------- --------- Total distributions .................... -- (0.04) (0.01) (2.83) (1.59) (0.01) ------------ --------- --------- --------- --------- --------- REDEMPTION FEES: Redemption fees added to paid-in capital . 0.01(c) -- -- -- -- -- ------------ --------- --------- --------- --------- --------- Net asset value, end of period .............. $ 11.40 $ 10.05 $ 12.03 $ 14.77 $ 22.81 $ 15.45 ------------ --------- --------- --------- --------- --------- TOTAL RETURN (e) ............................ 13.43%(f)(g) (16.10)%(f) (18.47)% (22.64)% 57.93% 12.83% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .... $ 248,718 $ 143,332 $ 135,626 $ 175,316 $ 239,223 $ 134,193 Ratio of expenses to average net assets (h) . 1.47%(i) 1.49% 1.56% 1.42% 1.48% 1.56% Ratio of net investment income (loss) to average net assets (h) 1.03%(i) (0.02)% 0.06% (0.19)% (0.35)% (0.02)% Waiver ...................................... 0.12%(i)(j) 0.12%(j) -- -- -- -- Portfolio turnover rate ..................... 43%(g) 96% 130% 112% 94% 74%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were redesignated Class Z shares. (c) Per share data was calculated using average shares outstanding during the period. (d) Rounds to less than $0.01 per share. (e) Total return at net asset value assuming all distributions reinvested. (f) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (g) Not annualized. (h) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized. (j) Amounts represent contractual waivers of transfer agent fees. See Accompanying Notes to Financial Statements 39 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA MID CAP GROWTH FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS A SHARES 2003(a) 2002(b) ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD ........... $ 14.77 $ 15.15 ------------ ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) ...................... (0.14) (0.02) Net realized and unrealized gain (loss) on investments ................................. 3.46 (0.36) ------------ ------------ Total from Investment Operations .......... 3.32 (0.38) ------------ ------------ NET ASSET VALUE, END OF PERIOD ................. $ 18.09 $ 14.77 ------------ ------------ TOTAL RETURN (d)(e)(f) ......................... 22.48% (2.51)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ....... $ 4,525 $ 1,180 Ratio of expenses to average net assets (g)(h) . 1.60% 1.49% Ratio of net investment loss to average net assets (g)(h) .................................. (1.31)% (1.22)% Waiver (h)(i) .................................. 0.01% 0.01% Portfolio turnover rate ........................ 78%(f) 88% (a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class A shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming no initial sales charge or contingent deferred sales charge. (e) Had the Advisor not waived a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. (i) Amounts represent contractual waivers of transfer agent fees. COLUMBIA MID CAP GROWTH FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS A SHARES 2003(a) 2002(b) ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD .......... $ 14.76 $ 15.15 ------------ ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) ..................... (0.22) (0.04) Net realized and unrealized gain (loss) on investments ................................ 3.44 (0.35) ------------ ------------ Total from Investment Operations .......... 3.22 (0.39) ------------ ------------ NET ASSET VALUE, END OF PERIOD ................ $ 17.98 $ 14.76 ------------ ------------ TOTAL RETURN (d)(e)(f) ........................ 21.82% (2.57)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ...... $ 4,242 $ 3,383 Ratio of expenses to average net assets (g)(h) 2.36% 2.32% Ratio of net investment loss to average net ... assets (g)(h) .............................. (2.06)% (2.05)% Waiver (h)(i) ................................. 0.12% 0.12% Portfolio turnover rate ....................... 78%(f) 88% (a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class B shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming no contingent deferred sales charge. (e) Had the Advisor not waived a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. (i) Amounts represent contractual waivers of transfer agent fees. See Accompanying Notes to Financial Statements 40 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA MID CAP GROWTH FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS D SHARES 2003(a) 2002(b) ----------- ----------- NET ASSET VALUE, BEGINNING OF PERIOD .................... $ 14.76 $ 15.15 ----------- ----------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) .............................. (0.21) (0.04) Net realized and unrealized gain (loss) on investments 3.43 (0.35) ----------- ----------- Total from investment operations ................... 3.22 (0.39) ----------- ----------- NET ASSET VALUE, END OF PERIOD .......................... $ 17.98 $ 14.76 ----------- ----------- TOTAL RETURN (d)(e)(f) .................................. 21.82% (2.57)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ................ $ 737 $ 433 Ratio of expenses to average net assets (g)(h) .......... 2.27% 2.32% Ratio of net investment loss to average net assets (g)(h) (1.97)% (2.05)% Waiver (h)(i) ........................................... 0.09% 0.09% Portfolio turnover rate ................................. 78%(f) 88%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class D shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming no initial sales charge or contingent deferred sales charge. (e) Had the Advisor not waived a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. (i) Amounts represent contractual waivers of transfer agent fees. COLUMBIA MID CAP GROWTH FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS G SHARES 2003(a) 2002(b) ----------- ----------- NET ASSET VALUE, BEGINNING OF PERIOD .................... $ 14.77 $ 15.15 ----------- ----------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) .............................. (0.23) (0.04) Net realized and unrealized gain (loss) on investments 3.44 (0.34) ----------- ----------- Total from investment operations ................... 3.21 (0.38) ----------- ----------- NET ASSET VALUE, END OF PERIOD .......................... $ 17.98 $ 14.77 ----------- ----------- TOTAL RETURN (d)(e) ..................................... 21.73% (2.51)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ................ $ 806 $ 753 Ratio of expenses to average net assets (f)(g) .......... 2.47% 2.35% Ratio of net investment loss to average net assets (f)(g) (2.17)% (2.08)% Portfolio turnover rate ................................. 78%(e) 88%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class G shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming no contingent deferred sales charge. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Accompanying Notes to Financial Statements 41 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA MID CAP GROWTH FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS T SHARES 2003(a) 2002(b) ----------- ----------- NET ASSET VALUE, BEGINNING OF PERIOD .................... $ 14.79 $ 15.15 ----------- ----------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) .............................. (0.12) (0.02) Net realized and unrealized gain (loss) on investments 3.45 (0.34) ----------- ----------- Total from investment operations ................... 3.33 (0.36) ----------- ----------- NET ASSET VALUE, END OF PERIOD .......................... $ 18.12 $ 14.79 ----------- ----------- TOTAL RETURN (d)(e) ..................................... 22.52% (2.38)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ................ $ 29,920 $ 25,966 Ratio of expenses to average net assets (f)(g) .......... 1.46% 1.45% Ratio of net investment loss to average net assets (f)(g) (1.16)% (1.18)% Portfolio turnover rate ................................. 78%(e) 88%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class T shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming no initial sales charge or contingent deferred sales charge. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Accompanying Notes to Financial Statements 42 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA MID CAP GROWTH FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED AUGUST 31, YEAR ENDED DECEMBER 31, CLASS Z SHARES 2003(a) 2002(b) 2001 2000 1999 1998 ----------- --------- --------- ----------- --------- -------- NET ASSET VALUE, BEGINNING OF PERIOD ........ $ 14.79 $ 19.60 $ 25.99 $ 29.93 $ 23.62 $ 20.26 ----------- --------- --------- ----------- --------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss ...................... (0.08)(c) (0.13)(c) (0.11) (0.10) (0.16) (0.03) Net realized and unrealized gain (loss) on investments .................. 3.46 (4.68) (5.35) 4.45 8.74 3.40 ----------- --------- --------- ----------- --------- -------- Total from investment operations ....... 3.38 (4.81) (5.46) 4.35 8.58 3.37 ----------- --------- --------- ----------- --------- -------- LESS DISTRIBUTIONS: From net investment income ............... -- -- -- -- -- (0.01) ----------- --------- --------- ----------- --------- -------- From net realized gains .................. -- -- (0.93) (8.29) (2.27) --(d) ----------- --------- --------- ----------- --------- -------- Total distributions .................... -- -- (0.93) (8.29) (2.27) (0.01) ----------- --------- --------- ----------- --------- -------- NET ASSET VALUE, END OF PERIOD .............. $ 18.17 $ 14.79 $ 19.60 $ 25.99 $ 29.93 $ 23.62 ----------- --------- --------- ----------- --------- -------- TOTAL RETURN (e) ............................ 22.85%(f)(g) (24.54)%(f) (20.98)% 13.84% 36.33% 16.64% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .... $ 998,943 $ 807,342 $ 786,071 $ 1,095,525 $ 918,322 $969,359 Ratio of expenses to average net assets (h).. 1.09%(i) 1.12% 1.08% 0.99% 1.09% 1.03% Ratio of net investment loss to average net assets (h) ............................. (0.80)%(i) (0.85)% (0.49)% (0.38)% (0.64)% (0.09)% Waiver ...................................... 0.05%(i)(j) 0.05%(j) -- -- -- -- Portfolio turnover rate ..................... 78%(g) 88% 186% 169% 135% 135%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were redesignated Class Z shares. (c) Per share data was calculated using average shares outstanding during the period. (d) Rounds to less than $0.01 per share. (e) Total return at net asset value assuming all distributions reinvested. (f) Had the Advisor not waived a portion of expenses, total return would have been reduced. (g) Not annualized. (h) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized. (j) Amounts represent contractual waivers of transfer agent fees. See Accompanying Notes to Financial Statements 43 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA SMALL CAP GROWTH FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED AUGUST 31, YEAR ENDED DECEMBER 31, CLASS Z SHARES 2003(a) 2002(b) 2001 2000 1999 1998 ----------- --------- --------- ----------- --------- -------- NET ASSET VALUE, BEGINNING OF PERIOD ........ $ 16.30 $ 22.20 $ 25.87 $ 27.26 $ 17.43 $ 16.65 ----------- --------- --------- ----------- --------- --------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss ...................... (0.13)(c) (0.17)(c) (0.13) (0.10) (0.14) (0.09) Net realized and unrealized gain (loss) on investments ................... 5.45 (5.73) (3.54) 1.75 10.45 0.87 ----------- --------- --------- ----------- --------- --------- Total from investment operations ....... 5.32 (5.90) (3.67) 1.65 10.31 0.78 ----------- --------- --------- ----------- --------- --------- LESS DISTRIBUTIONS: From net realized gains .................. -- -- -- (3.04) (0.48) --(d) ----------- --------- --------- ----------- --------- --------- NET ASSET VALUE, END OF PERIOD .............. $ 21.62 $ 16.30 $ 22.20 $ 25.87 $ 27.26 $ 17.43 ----------- --------- --------- ----------- --------- --------- TOTAL RETURN (e) ............................ 32.64%(f) (26.58)% (14.19)% 5.85% 59.15% 4.69% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .... $ 637,616 $ 493,031 $ 617,966 $ 518,970 $ 290,374 $ 160,472 Ratio of expenses to average net assets (g).. 1.28%(h) 1.24% 1.23% 1.22% 1.30% 1.34% Ratio of net investment loss to average net assets (g) ............................ (1.09)%(h) (0.90)% (0.71)% (0.44)% (0.84)% (0.68)% Portfolio turnover rate ..................... 79%(f) 109% 129% 145% 188% 158%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were redesignated Class Z shares. (c) Per share data was calculated using average shares outstanding during the period. (d) Rounds to less than $0.01 per share. (e) Total return at net asset value assuming all distributions reinvested. (f) 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. COLUMBIA REAL ESTATE EQUITY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS A SHARES 2003(a) 2002(b) ----------- ----------- NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 17.80 $ 17.01 ----------- ----------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) .............................. 0.36(d) 0.26 Net realized and unrealized gain on investments ........ 3.11 0.78 ----------- ----------- Total from investment operations ..................... 3.47 1.04 ----------- ----------- LESS DISTRIBUTIONS: From net investment income ............................. (0.23) (0.25) ----------- ----------- NET ASSET VALUE, END OF PERIOD ............................ $ 21.04 $ 17.80 ----------- ----------- TOTAL RETURN (e)(f) ....................................... 19.62% 6.10% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .................. $ 12,364 $ 905 Ratio of expenses to average net assets (g)(h) ............ 1.55% 1.43% Ratio of net investment income to average net assets (g)(h) 2.70%(d) 4.81% Portfolio turnover rate ................................... 33%(f) 53%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class A shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Effective January 1, 2003, the Fund adopted the policy to reduce cost of investments for financial statement purposes by the distributions received in excess of income from Real Estate Investment Trusts. The effect of this change for the eight months ended August 31, 2003 was to decrease the net investment income per share by $0.05, increase net realized and unrealized gain on investments per share by $0.05 and decrease the ratio of net investment income to average net assets from 3.12% to 2.70%. Per share data and ratios for periods prior to August 31, 2003 have not been restated to reflect this change in policy. (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 Accompanying Notes to Financial Statements 44 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA REAL ESTATE EQUITY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS B SHARES 2003(a) 2002(b) ----------- ----------- NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 17.82 $ 17.01 ----------- ----------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) .............................. 0.24(d) 0.22 Net realized and unrealized gain on investments ........ 3.12 0.81 Total from investment operations ..................... 3.36 1.03 ----------- ----------- LESS DISTRIBUTIONS: From net investment income ............................. (0.15) (0.22) ----------- ----------- NET ASSET VALUE, END OF PERIOD ............................ $ 21.03 $ 17.82 ----------- ----------- TOTAL RETURN (e)(f) ....................................... 18.97% 6.09% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .................. $ 4,776 $ 1,074 Ratio of expenses to average net assets (g)(h) ............ 2.37% 2.18% Ratio of net investment income to average net assets (g)(h) 1.86%(d) 4.06% Portfolio turnover rate ................................... 33%(f) 53%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class B shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Effective January 1, 2003, the Fund adopted the policy to reduce cost of investments for financial statement purposes by the distributions received in excess of income from Real Estate Investment Trusts. The effect of this change for the eight months ended August 31, 2003 was to decrease the net investment income per share by $0.05, increase net realized and unrealized gain on investments per share by $0.05 and decrease the ratio of net investment income to average net assets from 2.28% to 1.86%. Per share data and ratios for periods prior to August 31, 2003 have not been restated to reflect this change in policy. (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. COLUMBIA REAL ESTATE EQUITY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS D SHARES 2003(a) 2002(b) ----------- ----------- NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 17.82 $ 17.01 ----------- ----------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) .............................. 0.27(d) 0.21 Net realized and unrealized gain on investments ........ 3.10 0.82 ----------- ----------- Total from investment operations ..................... 3.37 1.03 ----------- ----------- LESS DISTRIBUTIONS: From net investment income ............................. (0.16) (0.22) ----------- ----------- NET ASSET VALUE, END OF PERIOD ............................ $ 21.03 $ 17.82 ----------- ----------- TOTAL RETURN (e)(f) ....................................... 18.99% 6.09% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .................. $ 3,466 $ 365 Ratio of expenses to average net assets (g)(h) ............ 2.30% 2.18% Ratio of net investment income to average net assets (g)(h) 2.02%(d) 4.06% Portfolio turnover rate ................................... 33%(f) 53%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class D shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Effective January 1, 2003, the Fund adopted the policy to reduce cost of investments for financial statement purposes by the distributions received in excess of income from Real Estate Investment Trusts. The effect of this change for the eight months ended August 31, 2003 was to decrease the net investment income per share by $0.05, increase net realized and unrealized gain on investments per share by $0.05 and decrease the ratio of net investment income to average net assets from 2.44% to 2.02%. Per share data and ratios for periods prior to August 31, 2003 have not been restated to reflect this change in policy. (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 Accompanying Notes to Financial Statements 45 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA REAL ESTATE EQUITY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED AUGUST 31, YEAR ENDED DECEMBER 31, CLASS Z SHARES 2003(a) 2002(b) 2001 2000 1999 1998 ----------- --------- --------- ----------- --------- --------- NET ASSET VALUE, BEGINNING OF PERIOD ........ $ 17.81 $ 18.04 $ 17.89 $ 14.57 $ 15.76 $ 18.80 ----------- --------- --------- ----------- --------- --------- INCOME FROM INVESTMENT OPERATIONS: Net investment income .................... 0.39(c)(d) 0.82(c) 0.79 0.81 0.82 0.75 Net realized and unrealized gain (loss) on investments ................... 3.14 (0.25) 0.15 3.32 (1.19) (3.04) ----------- --------- --------- ----------- --------- --------- Total from investment operations ........ 3.53 0.57 0.94 4.13 (0.37) (2.29) ----------- --------- --------- ----------- --------- --------- LESS DISTRIBUTIONS: From net investment income ............... (0.28) (0.71) (0.72) (0.75) (0.71) (0.66) From net realized gains .................. -- (0.09) (0.07) (0.06) (0.11) (0.09) ----------- --------- --------- ----------- --------- --------- Total distributions .................... (0.28) (0.80) (0.79) (0.81) (0.82) (0.75) ----------- --------- --------- ----------- --------- --------- NET ASSET VALUE, END OF PERIOD .............. $ 21.06 $ 17.81 $ 18.04 $ 17.89 $ 14.57 $ 15.76 ----------- --------- --------- ----------- --------- --------- TOTAL RETURN (e) ............................ 20.01%(f) 3.12% 5.41% 28.84% (2.45)% (12.33)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .... $ 884,747 $ 774,646 $ 621,590 $ 436,764 $ 241,716 $ 164,172 Ratio of expenses to average net assets (g) . 1.08%(h) 0.94% 0.95% 0.96% 0.99% 1.01% Ratio of net investment income to average net assets (g) .................... 3.09%(d)(h) 5.30% 4.65% 5.16% 5.66% 4.60% Portfolio turnover rate ..................... 33%(f) 53% 41% 25% 29% 6%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were redesignated Class Z shares. (c) Per share data was calculated using average shares outstanding during the period. (d) Effective January 1, 2003, the Fund adopted the policy to reduce cost of investments for financial statement purposes by the distributions received in excess of income from Real Estate Investment Trusts. The effect of this change for the eight months ended August 31, 2003 was to decrease the net investment income per share by $0.05, increase net realized and unrealized gain on investments per share by $0.05 and decrease the ratio of net investment income to average net assets from 3.51% to 3.09%. Per share data and ratios for periods prior to August 31, 2003 have not been restated to reflect this change in policy. (e) Total return at net asset value assuming all distributions reinvested. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. See Accompanying Notes to Financial Statements 46 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA TECHNOLOGY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS A SHARES 2003(a) 2002(b) ----------- ----------- NET ASSET VALUE, BEGINNING OF PERIOD .................... $ 3.79 $ 3.82 ----------- ----------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) .............................. (0.04) (0.01) Net realized and unrealized gain (loss) on investments 2.16 (0.02) ----------- ----------- Total from investment operations ................... 2.12 (0.03) ----------- ----------- NET ASSET VALUE, END OF PERIOD .......................... $ 5.91 $ 3.79 ----------- ----------- TOTAL RETURN (d)(e)(f) .................................. 55.94% (0.79)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ................ $ 376 $ 1 Ratio of expenses to average net assets (g)(h) .......... 1.90% 1.76% Ratio of net investment loss to average net assets (g)(h) (1.35)% (1.35)% Reimbursement (h) ....................................... 3.06% 1.24% Portfolio turnover rate ................................. 523%(f) 512%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class A shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming no initial sales charge or contingent deferred sales charge. (e) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. COLUMBIA TECHNOLOGY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS B SHARES 2003(a) 2002(b) ----------- ----------- NET ASSET VALUE, BEGINNING OF PERIOD .................... $ 3.78 $ 3.82 ----------- ----------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) .............................. (0.07) (0.01) Net realized and unrealized gain (loss) on investments 2.15 (0.03) ----------- ----------- Total from investment operations ................... 2.08 (0.04) ----------- ----------- NET ASSET VALUE, END OF PERIOD .......................... $ 5.86 $ 3.78 ----------- ----------- TOTAL RETURN (d)(e)(f) .................................. 55.03% (1.05)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ................ $ 1,246 $ 7 Ratio of expenses to average net assets (g)(h) .......... 2.65% 2.51% Ratio of net investment loss to average net assets (g)(h) (2.11)% (2.10)% Reimbursement (h) ....................................... 2.40% 1.24% Portfolio turnover rate ................................. 523%(f) 512%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class B shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming no contingent deferred sales charge. (e) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. See Accompanying Notes to Financial Statements 47 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA TECHNOLOGY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS D SHARES 2003(a) 2002(b) ----------- ----------- NET ASSET VALUE, BEGINNING OF PERIOD .................... $ 3.78 $ 3.82 ----------- ----------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) .............................. (0.07) (0.01) Net realized and unrealized gain (loss) on investments 2.17 (0.03) ----------- ----------- Total from investment operations ................... 2.10 (0.04) ----------- ----------- NET ASSET VALUE, END OF PERIOD .......................... $ 5.88 $ 3.78 ----------- ----------- TOTAL RETURN (d)(e)(f) .................................. 55.56% (1.05)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ................ $ 15 $ 1 Ratio of expenses to average net assets (g)(h) .......... 2.65% 2.51% Ratio of net investment loss to average net assets (g)(h) (2.13)% (2.10)% Reimbursement (h) ....................................... 4.00% 1.24% Portfolio turnover rate ................................. 523%(f) 512%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class D shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming no initial sales charge or contingent deferred sales charge. (e) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. COLUMBIA TECHNOLOGY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED YEAR ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, DECEMBER 31, CLASS Z SHARES 2003(a) 2002(b) 2001 2000(c) ----------- --------- --------- ----------- NET ASSET VALUE, BEGINNING OF PERIOD .......................... $ 3.79 $ 6.13 $ 8.63 $ 10.00 ----------- --------- --------- ----------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) ............................... (0.04)(d) (0.06)(d) (0.08) 0.01 Net realized and unrealized gain (loss) on investments ..... 2.18 (2.28) (2.42) (1.37) ----------- --------- --------- ----------- Total from investment operations ......................... 2.14 (2.34) (2.50) (1.36) ----------- --------- --------- ----------- LESS DISTRIBUTIONS: From net investment income ................................. -- -- -- (0.01) ----------- --------- --------- ----------- NET ASSET VALUE, END OF PERIOD ................................ $ 5.93 $ 3.79 $ 6.13 $ 8.63 ----------- --------- --------- ----------- TOTAL RETURN (e)(f) ........................................... 56.46%(g) (38.17)% (28.97)% (13.78)%(g) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ...................... $ 19,663 $ 8,055 $ 10,385 $ 4,327 Ratio of expenses to average net assets (h) ................... 1.65%(i) 1.65% 1.69% 1.48%(i) Ratio of net investment income (loss) to average net assets (h) (1.19)%(i) (1.24)% (1.26)% 0.99%(i) Reimbursement ................................................. 2.73%(i) 1.33% 1.13% 7.49%(i) Portfolio turnover rate ....................................... 523%(g) 512% 413% 63%(g)
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing shares were redesignated Class Z shares. (c) The Fund commenced investment operations on October 27, 2000. Per share data, total return and portfolio turnover rate reflect activity from that date. (d) Per share data was calculated using average shares outstanding during the period. (e) Total return at net asset value assuming all distributions reinvested. (f) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (g) Not annualized. (h) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized. See Accompanying Notes to Financial Statements 48 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA STRATEGIC INVESTOR FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS A SHARES 2003(a) 2002(b) ----------- ----------- NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 13.13 $ 12.72 ----------- ----------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) .............................. 0.06 0.01 Net realized and unrealized gain on investments and foreign currency ..................... 2.76 0.40 ----------- ----------- Total from investment operations ..................... 2.82 0.41 ----------- ----------- NET ASSET VALUE, END OF PERIOD ............................ $ 15.95 $ 13.13 ----------- ----------- TOTAL RETURN (d)(e) ....................................... 21.48% 3.22% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .................. $ 60,112 $ 53,526 Ratio of expenses to average net assets (f)(g) ............ 1.30% 1.21% Ratio of net investment income to average net assets (f)(g) 0.60% 0.64% Portfolio turnover rate ................................... 68%(e) 188%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class A shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming no initial sales charge or contingent deferred sales charge. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. COLUMBIA STRATEGIC INVESTOR FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS B SHARES 2003(a) 2002(b) ----------- ----------- NET ASSET VALUE, BEGINNING OF PERIOD .................... $ 13.10 $ 12.72 ----------- ----------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) .............................. (0.03) (0.01) Net realized and unrealized gain on investments and foreign currency ................... 2.75 0.39 ----------- ----------- Total from investment operations ................... 2.72 0.38 ----------- ----------- NET ASSET VALUE, END OF PERIOD .......................... $ 15.82 $ 13.10 ----------- ----------- TOTAL RETURN (d)(e)(f) .................................. 20.76% 2.99% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ................ $ 3,398 $ 2,350 Ratio of expenses to average net assets (g)(h) .......... 2.22% 2.36% Ratio of net investment loss to average net assets (g)(h) (0.33)% (0.51)% Waiver (h)(i) ........................................... 0.23% 0.23% Portfolio turnover rate ................................. 68%(f) 188%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class B shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming no contingent deferred sales charge. (e) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. (i) Amounts represent contractual waivers of transfer agent fees. See Accompanying Notes to Financial Statements 49 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA STRATEGIC INVESTOR FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS D SHARES 2003(a) 2002(b) ----------- ----------- NET ASSET VALUE, BEGINNING OF PERIOD .................... $ 13.11 $ 12.72 ----------- ----------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) .............................. (0.05) (0.01) Net realized and unrealized gain on investments and foreign currency ................... 2.75 0.40 ----------- ----------- Total from investment operations ................... 2.70 0.39 ----------- ----------- NET ASSET VALUE, END OF PERIOD .......................... $ 15.81 $ 13.11 ----------- ----------- TOTAL RETURN (d)(e)(f) .................................. 20.59% 3.07% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ................ $ 704 $ 355 Ratio of expenses to average net assets (g)(h) .......... 2.34% 2.28% Ratio of net investment loss to average net assets (g)(h) (0.48)% (0.43)% Waiver (h)(i) ........................................... 0.15% 0.15% Portfolio turnover rate ................................. 68%(f) 188%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class D shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming no initial sales charge or contingent deferred sales charge. (e) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. (i) Amounts represent contractual waivers of transfer agent fees. See Accompanying Notes to Financial Statements 50 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA STRATEGIC INVESTOR FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED YEAR ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, DECEMBER 31, CLASS Z SHARES 2003(a) 2002(b) 2001 2000(c) ----------- --------- ---------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD .................... $ 13.14 $ 14.52 $ 11.23 $ 10.00 ----------- --------- ---------- ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income ................................ 0.08(d) 0.10(d) 0.05 0.02 Net realized and unrealized gain (loss) on investments and foreign currency ............................... 2.76 (1.35) 3.29 1.23 ----------- --------- ---------- ------------ Total from investment operations ................... 2.84 (1.25) 3.34 1.25 ----------- --------- ---------- ------------ LESS DISTRIBUTIONS: From net investment income ........................... -- (0.11) (0.05) (0.02) From net realized gains .............................. -- (0.02) -- -- ----------- --------- ---------- ------------ Total distributions ................................ -- (0.13) (0.05) (0.02) ----------- --------- ---------- ------------ NET ASSET VALUE, END OF PERIOD .......................... $ 15.98 $ 13.14 $ 14.52 $ 11.23 ----------- --------- ---------- ------------ TOTAL RETURN (e) ........................................ 21.61%(f)(g) (8.56)%(f) 29.76% 12.25%(f)(g) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ................ $ 227,454 $ 209,610 $ 139,504 $ 9,526 Ratio of expenses to average net assets (h) ............. 1.08%(i) 1.23% 1.13% 1.34%(i) Ratio of net investment income to average net assets (h) 0.82%(i) 0.62% 0.71% 1.92%(i) Waiver .................................................. 0.03%(i)(j) 0.03%(j) -- 3.97%(i) Portfolio turnover rate ................................. 68%(g) 188% 278% 64%(g)
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were redesignated Class Z shares. (c) The Fund commenced investment operations on October 27, 2000. Per share data, total return and portfolio turnover rate reflect activity from that date. (d) Per share data was calculated using average shares outstanding during the period. (e) Total return at net asset value assuming all distributions reinvested. (f) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (g) Not annualized. (h) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized. (j) Amounts represent contractual waivers of the transfer agent fees. See Accompanying Notes to Financial Statements 51 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA BALANCED FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS A SHARES 2003(a) 2002(b) ----------- ----------- NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 17.52 $ 17.58 ----------- ----------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) .............................. 0.16 0.03 Net realized and unrealized gain on investments ........ 1.64 --(d) ----------- ----------- Total from investment operations ..................... 1.80 0.03 ----------- ----------- LESS DISTRIBUTIONS: From net investment income ............................. (0.14) (0.09) ----------- ----------- NET ASSET VALUE, END OF PERIOD ............................ $ 19.18 $ 17.52 ----------- ----------- TOTAL RETURN (e)(f) ....................................... 10.35% 0.19% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .................. $ 670 $ 146 Ratio of expenses to average net assets (g)(h) ............ 1.42% 1.17% Ratio of net investment income to average net assets (g)(h) 1.32% 2.03% Portfolio turnover rate ................................... 110%(f) 98%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class A shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Rounds to less than $0.01 per share. (e) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (f) 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. COLUMBIA BALANCED FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS B SHARES 2003(a) 2002(b) ----------- ----------- NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 17.52 $ 17.58 ----------- ----------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) .............................. 0.07 0.02 Net realized and unrealized gain (loss) on investments . 1.65 (0.01) ----------- ----------- Total from investment operations ..................... 1.72 0.01 ----------- ----------- LESS DISTRIBUTIONS: From net investment income ............................. (0.08) (0.07) ----------- ----------- NET ASSET VALUE, END OF PERIOD ............................ $ 19.16 $ 17.52 ----------- ----------- TOTAL RETURN (d)(e) ....................................... 9.83% 0.06% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .................. $ 3,349 $ 608 Ratio of expenses to average net assets (f)(g) ............ 2.17% 1.92% Ratio of net investment income to average net assets (f)(g) 0.59% 1.28% Portfolio turnover rate ................................... 110%(e) 98%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class B shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Accompanying Notes to Financial Statements 52 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA BALANCED FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS D SHARES 2003(a) 2002(b) ----------- ----------- NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 17.51 $ 17.58 ----------- ----------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) .............................. 0.11 0.02 Net realized and unrealized gain (loss) on investments . 1.64 (0.02) ----------- ----------- Total from investment operations ..................... 1.75 -- ----------- ----------- LESS DISTRIBUTIONS: From net investment income ............................. (0.09) (0.07) ----------- ----------- NET ASSET VALUE, END OF PERIOD ............................ $ 19.17 $ 17.51 ----------- ----------- TOTAL RETURN (d)(e) ....................................... 10.01% 0.01% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .................. $ 770 $ 446 Ratio of expenses to average net assets (f)(g) ............ 1.87% 1.92% Ratio of net investment income to average net assets (f)(g) 0.89% 1.28% Portfolio turnover rate ................................... 110%(e) 98%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class D shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Accompanying Notes to Financial Statements 53 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA BALANCED FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED AUGUST 31, EAR ENDED DECEMBER 31, CLASS Z SHARES 2003(a) 2002(b) 2001 2000 1999 1998 ------------ ---------- --------- ----------- ----------- --------- NET ASSET VALUE, BEGINNING OF PERIOD .......... $ 17.51 $ 20.67 $ 22.96 $ 24.72 $ 23.17 $ 21.42 ------------ ---------- --------- ----------- ----------- --------- INCOME FROM INVESTMENT OPERATIONS: Net investment income ...................... 0.24(c) 0.47(c) 0.57(d) 0.67 0.69 0.72 Net realized and unrealized gain (loss) on investments ..................... 1.64 (3.13) (2.27)(d) (0.41) 2.21 3.52 ------------ ---------- --------- ----------- ----------- --------- Total from investment operations ......... 1.88 (2.66) (1.70) 0.26 2.90 4.24 ------------ ---------- --------- ----------- ----------- --------- LESS DISTRIBUTIONS: From net investment income ................. (0.20) (0.50) (0.59) (0.68) (0.69) (0.73) From net realized gains .................... -- -- -- (1.34) (0.66) (1.76) ------------ ---------- --------- ----------- ----------- --------- Total distributions ...................... (0.20) (0.50) (0.59) (2.02) (1.35) (2.49) ------------ ---------- --------- ----------- ----------- --------- NET ASSET VALUE, END OF PERIOD ................ $ 19.19 $ 17.51 $ 20.67 $ 22.96 $ 24.72 $ 23.17 ------------ ---------- --------- ----------- ----------- --------- TOTAL RETURN (e) .............................. 10.81%(f) (12.97)% (7.40)% 0.82% 12.70% 20.07% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ...... $ 640,402 $ 668,290 $ 983,749 $ 1,126,854 $ 1,040,940 $ 975,381 Ratio of expenses to average net assets (g) ... 0.77%(h) 0.70% 0.67% 0.65% 0.66% 0.67% Ratio of net investment income to average net assets (g) ...................... 2.03%(h) 2.50% 2.70%(d) 2.73% 2.85% 3.22% Portfolio turnover rate ....................... 110%(f) 98% 111% 105% 133% 128%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were redesignated Class Z shares. (c) Per share data was calculated using average shares outstanding during the period. (d) Effective January 1, 2001, the Fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and accreting discount on all debt securities. The effect of this change for the year ended December 31, 2001, was to decrease net investment income per share by $0.01, decrease net realized and unrealized loss per share by $0.01 and decrease the ratio of net investment income to average net assets from 2.73% to 2.70%. Per share data and ratios for periods prior to December 31, 2001 have not been restated to reflect this change in presentation. (e) Total return at net asset value assuming all distributions reinvested. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. See Accompanying Notes to Financial Statements 54 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA SHORT TERM BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS A SHARES 2003(a) 2002(b) ------------ ----------- NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 8.67 $ 8.63 ------------ ----------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) .............................. 0.10 0.04 Net realized and unrealized gain (loss) on investments . (0.03) 0.04 ------------ ----------- Total from investment operations ..................... 0.07 0.08 ------------ ----------- LESS DISTRIBUTIONS: From net investment income ............................. (0.12) (0.04) ------------ ----------- NET ASSET VALUE, END OF PERIOD ............................ $ 8.62 $ 8.67 ------------ ----------- TOTAL RETURN (d)(e)(f) .................................... 0.82% 0.94% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .................. $ 37,261 $ 5,543 Ratio of expenses to average net assets (g)(h) ............ 1.00% 1.00% Ratio of net investment income to average net assets (g)(h) 1.78% 3.53% Waiver/reimbursement (h) .................................. 0.05% 0.02% Portfolio turnover rate ................................... 137%(f) 182%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class A shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (e) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. See Accompanying Notes to Financial Statements 55 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA SHORT TERM BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS B SHARES 2003(a) 2002(b) ----------- ----------- NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 8.67 $ 8.63 ----------- ----------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) .............................. 0.07 0.03 Net realized and unrealized gain (loss) on investments . (0.04) 0.04 ----------- ----------- Total from investment operations ..................... 0.03 0.07 ----------- ----------- LESS DISTRIBUTIONS: From net investment income ............................. (0.08) (0.03) ----------- ----------- NET ASSET VALUE, END OF PERIOD ............................ $ 8.62 $ 8.67 ----------- ----------- TOTAL RETURN (d)(e)(f) .................................... 0.35% 0.77% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .................. $ 26,965 $ 6,261 Ratio of expenses to average net assets (g)(h) ............ 1.75% 1.75% Ratio of net investment income to average net assets (g)(h) 1.16% 2.78% Reimbursement (h) ......................................... 0.15% 0.04% Portfolio turnover rate ................................... 137%(f) 182%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class B shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (e) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. See Accompanying Notes to Financial Statements 56 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA SHORT TERM BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS D SHARES 2003(a) 2002(b) ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 8.67 $ 8.63 ------------ ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) .............................. 0.10 0.04 Net realized and unrealized gain (loss) on investments . (0.04) 0.04 ------------ ------------ Total from investment operations ..................... 0.06 0.08 ------------ ------------ LESS DISTRIBUTIONS: From net investment income ............................. (0.11) (0.04) ------------ ------------ NET ASSET VALUE, END OF PERIOD ............................ $ 8.62 $ 8.67 ------------ ------------ TOTAL RETURN (d)(e)(f) .................................... 0.72% 0.88% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .................. $ 18,512 $ 5,223 Ratio of expenses to average net assets (g)(h) ............ 1.15% 1.15% Ratio of net investment income to average net assets (g)(h) 1.71% 3.38% Reimbursement (h) ......................................... 0.18% 0.04% Waiver (h)(i) ............................................. 0.60% 0.60% Portfolio turnover rate ................................... 137%(f) 182%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class D shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (e) Had the Advisor/Distributor not waived or reimbursed a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. (i) Amounts represent voluntary waivers of distribution and service fees. See Accompanying Notes to Financial Statements 57 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA SHORT TERM BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS G SHARES 2003(a) 2002(b) ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 8.67 $ 8.63 ------------ ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) .............................. 0.09 0.03 Net realized and unrealized gain (loss) on investments . (0.05) 0.04 ------------ ------------ Total from investment operations ..................... 0.04 0.07 ------------ ------------ LESS DISTRIBUTIONS: From net investment income ............................. (0.09) (0.03) ------------ ------------ NET ASSET VALUE, END OF PERIOD ............................ $ 8.62 $ 8.67 ------------ ------------ TOTAL RETURN (d)(e)(f) .................................... 0.47% 0.85% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .................. $ 1,614 $ 1,874 Ratio of expenses to average net assets (g)(h) ............ 1.55% 1.55% Ratio of net investment income to average net assets (g)(h) 1.58% 2.98% Reimbursement (h) ......................................... 0.10% 0.05% Portfolio turnover rate ................................... 137%(f) 182%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class G shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (e) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. See Accompanying Notes to Financial Statements 58 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA SHORT TERM BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS T SHARES 2003(a) 2002(b) ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 8.67 $ 8.63 ------------ ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) .............................. 0.13 0.04 Net realized and unrealized gain (loss) on investments . (0.05) 0.04 ------------ ------------ Total from investment operations ..................... 0.08 0.08 ------------ ------------ LESS DISTRIBUTIONS: From net investment income ............................. (0.13) (0.04) ------------ ------------ NET ASSET VALUE, END OF PERIOD ............................ $ 8.62 $ 8.67 ------------ ------------ TOTAL RETURN (d)(e)(f) .................................... 0.93% 0.95% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .................. $ 28,230 $ 30,859 Ratio of expenses to average net assets (g)(h) ............ 0.90% 0.90% Ratio of net investment income to average net assets (g)(h) 2.25% 3.63% Reimbursement (h) ......................................... 0.04% 0.02% Portfolio turnover rate ................................... 137%(f) 182%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class T shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (e) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. See Accompanying Notes to Financial Statements 59 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA SHORT TERM BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED AUGUST 31, YEAR ENDED DECEMBER 31, CLASS Z SHARES 2003(a) 2002(b) 2001 2000 1999 1998 ------------ --------- --------- --------- -------- --------- NET ASSET VALUE, BEGINNING OF PERIOD .......... $ 8.67 $ 8.55 $ 8.36 $ 8.20 $ 8.39 $ 8.29 ------------ --------- --------- --------- -------- --------- INCOME FROM INVESTMENT OPERATIONS: Net investment income ...................... 0.14(c) 0.32(c) 0.46(d) 0.42 0.33 0.38 Net realized and unrealized gain (loss) on investments ..................... (0.05) 0.14 0.21(d) 0.16 (0.18) 0.14 ------------ --------- --------- --------- -------- --------- Total from investment operations ......... 0.09 0.46 0.67 0.58 0.15 0.52 ------------ --------- --------- --------- -------- --------- LESS DISTRIBUTIONS: From net investment income ................. (0.14) (0.34) (0.46) (0.42) (0.33) (0.38) From net realized gains .................... -- --(e) (0.02) -- (0.01) (0.04) ------------ --------- --------- --------- -------- --------- Total distributions ...................... (0.14) (0.34) (0.48) (0.42) (0.34) (0.42) ------------ --------- --------- --------- -------- --------- NET ASSET VALUE, END OF PERIOD ................ $ 8.62 $ 8.67 $ 8.55 $ 8.36 $ 8.20 $ 8.39 ------------ --------- --------- --------- -------- --------- TOTAL RETURN (f) .............................. 1.06%(g)(h) 5.56% 8.07%(h) 7.26%(h) 1.80% 6.43% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ...... $ 436,593 $ 317,588 $ 62,930 $ 35,856 $ 38,072 $ 40,578 Ratio of expenses to average net assets (i) ... 0.66%(j) 0.67% 0.75% 0.88% 0.91% 0.89% Ratio of net investment income to average net assets (i) ....................... 2.36%(j) 3.86% 5.29%(d) 5.09% 4.09% 4.55% Reimbursement ................................. 0.07%(j) -- 0.16% 0.02% -- -- Portfolio turnover rate ....................... 137%(g) 182% 137% 147% 211% 182%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing shares were redesignated Class Z shares. (c) Per share data was calculated using average shares outstanding during the period. (d) Effective January 1, 2001, the Fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and accreting discount on all debt securities. The effect of this change for the year ended December 31, 2001, was to increase the ratio of net investment income to average net assets from 5.26% to 5.29%. The impact to net investment income and net realized and unrealized gain per share was less than $0.01. Per share data and ratios for periods prior to December 31, 2001 have not been restated to reflect this change in presentation. (e) Rounds to less than $0.01 per share. (f) Total return at net asset value assuming all distributions reinvested. (g) 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. See Accompanying Notes to Financial Statements 60 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA FIXED INCOME SECURITIES FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS A SHARES 2003(a) 2002(b) ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 13.52 $ 13.42 ------------ ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) .............................. 0.26 0.11 Net realized and unrealized gain (loss) on investments . (0.14) 0.08 ------------ ------------ Total from investment operations ..................... 0.12 0.19 ------------ ------------ LESS DISTRIBUTIONS: From net investment income ............................. (0.30) (0.09) ------------ ------------ NET ASSET VALUE, END OF PERIOD ............................ $ 13.34 $ 13.52 ------------ ------------ TOTAL RETURN (d)(e) ....................................... 0.84% 1.41% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .................. $ 7,503 $ 945 Ratio of expenses to average net assets (f)(g) ............ 1.44% 0.92% Ratio of net investment income to average net assets (f)(g) 2.84% 4.78% Portfolio turnover rate ................................... 161%(e) 103%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class A shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. COLUMBIA FIXED INCOME SECURITIES FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS B SHARES 2003(a) 2002(b) ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 13.52 $ 13.42 ------------ ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) .............................. 0.20 0.09 Net realized and unrealized gain (loss) on investments . (0.15) 0.08 ------------ ------------ Total from investment operations ..................... 0.05 0.17 ------------ ------------ LESS DISTRIBUTIONS: From net investment income ............................. (0.23) (0.07) ------------ ------------ NET ASSET VALUE, END OF PERIOD ............................ $ 13.34 $ 13.52 ------------ ------------ TOTAL RETURN (d)(e) ....................................... 0.34% 1.27% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .................. $ 4,410 $ 1,466 Ratio of expenses to average net assets (f)(g) ............ 2.10% 1.71% Ratio of net investment income to average net assets (f)(g) 2.22% 3.99% Portfolio turnover rate ................................... 161%(e) 103%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class B shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Accompanying Notes to Financial Statements 61 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA FIXED INCOME SECURITIES FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS D SHARES 2003(a) 2002(b) ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 13.52 $ 13.42 ------------ ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) .............................. 0.22 0.09 Net realized and unrealized gain (loss) on investments . (0.15) 0.08 ------------ ------------ Total from investment operations ..................... 0.07 0.17 ------------ ------------ LESS DISTRIBUTIONS: From net investment income ............................. (0.25) (0.07) ------------ ------------ NET ASSET VALUE, END OF PERIOD ............................ $ 13.34 $ 13.52 ------------ ------------ TOTAL RETURN (d)(e)(f) .................................... 0.51% 1.30% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .................. $ 2,632 $ 427 Ratio of expenses to average net assets (g)(h) ............ 1.79% 1.58% Ratio of net investment income to average net assets (g)(h) 2.44% 4.12% Waiver (h)(i) ............................................. 0.15% 0.15% Portfolio turnover rate ................................... 161%(f) 103%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class D shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested . and no initial sales charge or contingent deferred sales charge. (e) Had the Distributor not waived or reimbursed a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. (i) Amounts represent voluntary waivers of distribution and service fees. See Accompanying Notes to Financial Statements 62 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA FIXED INCOME SECURITIES FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED AUGUST 31, YEAR ENDED DECEMBER 31, CLASS Z SHARES 2003(a) 2002(b) 2001 2000 1999 1998 ------------ --------- --------- --------- --------- --------- NET ASSET VALUE, BEGINNING OF PERIOD .......... $ 13.52 $ 13.22 $ 12.97 $ 12.44 $ 13.42 $ 13.41 ------------ --------- --------- --------- --------- --------- INCOME FROM INVESTMENT OPERATIONS: Net investment income ...................... 0.33(c) 0.67(c) 0.77(d) 0.82 0.78 0.83 Net realized and unrealized gain (loss) on investments ..................... (0.16) 0.31 0.26(d) 0.53 (0.98) 0.14 ------------ --------- --------- --------- --------- --------- Total from investment operations ......... 0.17 0.98 1.03 1.35 (0.20) 0.97 ------------ --------- --------- --------- --------- --------- LESS DISTRIBUTIONS: From net investment income ................. (0.35) (0.68) (0.78) (0.82) (0.78) (0.83) From net realized gains .................... -- -- -- -- --(e) (0.13) ------------ --------- --------- --------- --------- --------- Total distributions ...................... (0.35) (0.68) (0.78) (0.82) (0.78) (0.96) ------------ --------- --------- --------- --------- --------- NET ASSET VALUE, END OF PERIOD ................ $ 13.34 $ 13.52 $ 13.22 $ 12.97 $ 12.44 $ 13.42 ------------ --------- --------- --------- --------- --------- TOTAL RETURN (f) .............................. 1.26%(g) 7.65% 8.13% 11.27% (1.50)% 7.44% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ...... $ 506,046 $ 547,524 $ 465,743 $ 378,799 $ 397,147 $ 422,330 Ratio of expenses to average net assets (h) ... 0.77%(i) 0.67% 0.66% 0.66% 0.64% 0.65% Ratio of net investment income to average net assets (h) ....................... 3.66%(i) 5.03% 5.83%(d) 6.53% 6.03% 6.15% Portfolio turnover rate ....................... 161%(g) 103% 110% 105% 155% 107%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were redesignated Class Z shares. (c) Per share data was calculated using average shares outstanding during the period. (d) Effective January 1, 2001, the Fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and accreting discount on all debt securities. The effect of this change for the year ended December 31, 2001, was to decrease net investment income per share by $0.01, increase net realized and unrealized gain per share by $0.01 and decrease the ratio of net investment income to average net assets from 5.92% to 5.83%. Per share data and ratios for periods prior to December 31, 2001 have not been restated to reflect this change in presentation. (e) Rounds to less than $0.01 per share. (f) Total return at net asset value assuming all distributions reinvested. (g) 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 Accompanying Notes to Financial Statements 63 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA NATIONAL MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS A SHARES 2003(a) 2002(b) ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 10.28 $ 10.22 ------------ ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) .............................. 0.24 0.06 Net realized and unrealized gain (loss) on investments . (0.16) 0.10 ------------ ------------ Total from investment operations ..................... 0.08 0.16 ------------ ------------ LESS DISTRIBUTIONS: From net investment income ............................. (0.24) (0.06) From net realized gains ................................ (0.01) (0.04) ------------ ------------ Total distributions .................................. (0.25) (0.10) ------------ ------------ NET ASSET VALUE, END OF PERIOD ............................ $ 10.11 $ 10.28 ------------ ------------ TOTAL RETURN (d)(e)(f) .................................... 0.75% 1.59% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .................. $ 398 $ 67 Ratio of expenses to average net assets (g)(h) ............ 0.90% 0.90% Ratio of net investment income to average net assets (g)(h) 3.49% 3.85% Reimbursement (h) ......................................... 2.87% 0.56% Portfolio turnover rate ................................... 12%(f) 43%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class A shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (e) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. See Accompanying Notes to Financial Statements 64 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA NATIONAL MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS B SHARES 2003(a) 2002(b) ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 10.28 $ 10.22 ------------ ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) .............................. 0.19 0.05 Net realized and unrealized gain (loss) on investments . (0.16) 0.10 ------------ ------------ Total from investment operations ..................... 0.03 0.15 ------------ ------------ LESS DISTRIBUTIONS: From net investment income ............................. (0.19) (0.05) From net realized gains ................................ (0.01) (0.04) ------------ ------------ Total distributions .................................. (0.20) (0.09) ------------ ------------ NET ASSET VALUE, END OF PERIOD ............................ $ 10.11 $ 10.28 ------------ ------------ TOTAL RETURN (d)(e)(f) .................................... 0.25% 1.47% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .................. $ 593 $ 72 Ratio of expenses to average net assets (g)(h) ............ 1.65% 1.65% Ratio of net investment income to average net assets (g)(h) 2.77% 3.10% Reimbursement (h) ......................................... 2.82% 0.56% Portfolio turnover rate ................................... 12%(f) 43%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class B shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (e) Had the Advisor not waived or reimbursed a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. See Accompanying Notes to Financial Statements 65 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA NATIONAL MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS D SHARES 2003(a) 2002(b) ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 10.28 $ 10.22 ------------ ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) .............................. 0.21 0.05 Net realized and unrealized gain (loss) on investments . (0.16) 0.10 ------------ ------------ Total from investment operations ..................... 0.05 0.15 ------------ ------------ LESS DISTRIBUTIONS: From net investment income ............................. (0.21) (0.05) From net realized gains ................................ (0.01) (0.04) ------------ ------------ Total distributions .................................. (0.22) (0.09) ------------ ------------ NET ASSET VALUE, END OF PERIOD ............................ $ 10.11 $ 10.28 ------------ ------------ TOTAL RETURN (d)(e)(f) .................................... 0.47% 1.51% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .................. $ 443 $ 50 Ratio of expenses to average net assets (g)(h) ............ 1.30% 1.30% Ratio of net investment income to average net assets (g)(h) 3.00% 3.45% Reimbursement (h) ......................................... 2.86% 0.56% Waiver (h)(i) ............................................. 0.35% 0.35% Portfolio turnover rate ................................... 12%(f) 43%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class D shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (e) Had the Advisor/Distributor not waived or reimbursed a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. (i) Amounts represent voluntary waivers of distribution and service fees. See Accompanying Notes to Financial Statements 66 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA NATIONAL MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED AUGUST 31, YEAR ENDED DECEMBER 31, CLASS Z SHARES 2003(a) 2002(b) 2001 2000 1999(c) ----------- -------- --------- --------- --------- NET ASSET VALUE, BEGINNING OF PERIOD .......... $ 10.28 $ 9.77 $ 9.82 $ 9.28 $ 10.00 ----------- -------- --------- --------- --------- INCOME FROM INVESTMENT OPERATIONS: Net investment income ...................... 0.27(d) 0.41(d) 0.44(e) 0.44 0.34 Net realized and unrealized gain (loss) on investments ................... (0.17) 0.55 (0.03)(e) 0.54 (0.72) ----------- -------- --------- --------- --------- Total from investment operations ......... 0.10 0.96 0.41 0.98 (0.38) ----------- -------- --------- --------- --------- LESS DISTRIBUTIONS: From net investment income ................. (0.26) (0.41) (0.44) (0.44) (0.34) From net realized gains .................... (0.01) (0.04) (0.02) -- -- ----------- -------- --------- --------- --------- Total distributions ...................... (0.27) (0.45) (0.46) (0.44) (0.34) ----------- -------- --------- --------- --------- NET ASSET VALUE, END OF PERIOD ................ $ 10.11 $ 10.28 $ 9.77 $ 9.82 $ 9.28 ----------- -------- --------- --------- --------- TOTAL RETURN (f)(g) ........................... 1.00%(h) 10.04% 4.16% 10.87% (3.93)%(h) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ...... $ 14,349 $ 16,470 $ 13,769 $ 10,898 $ 10,135 Ratio of expenses to average net assets (i) ... 0.65%(j) 0.65% 0.65% 0.65% 0.65%(j) Ratio of net investment income to average net assets (i) ....................... 3.86%(j) 4.10% 4.44%(e) 4.68% 4.21%(j) Reimbursement (i) ............................. 1.90%(j) 0.50% 0.66% 0.64% 1.07%(j) Portfolio turnover rate ....................... 12%(h) 43% 20% 21% 12%(h)
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were redesignated Class Z shares. (c) The Fund commenced investment operations on February 10, 1999. 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) Effective January 1, 2001, the Fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and accreting discount all debt securities. The effect of this change for the year ended December 31, 2001, was to decrease the ratio of net investment income to average net assets from 4.47% to 4.44%. The impact to net investment income and net Per share data and ratios for periods prior to realized and unrealized loss per share was than $0.01. Per share data and ratios for periods prior to December 31, 2001 have not been restated to reflect this change in presentation. (f) Total return at net asset value assuming all distributions reinvested. (g) Had the Advisor 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 Accompanying Notes to Financial Statements 67 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA OREGON MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS A SHARES 2003(a) 2002(b) ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 12.50 $ 12.52 ------------ ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) .............................. 0.29 0.08 Net realized and unrealized gain (loss) on investments . (0.22) 0.07 ------------ ------------ Total from investment operations ..................... 0.07 0.15 ------------ ------------ LESS DISTRIBUTIONS: From net investment income ............................. (0.31) (0.08) Distributions from capital gains ....................... (0.01) (0.09) ------------ ------------ Total distributions .................................. (0.32) (0.17) ------------ ------------ NET ASSET VALUE, END OF PERIOD ............................ $ 12.25 $ 12.50 ------------ ------------ TOTAL RETURN (d)(e) ....................................... 0.56% 1.19% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .................. $ 2,138 $ 477 Ratio of expenses to average net assets (f)(g) ............ 1.16% 0.92% Ratio of net investment income to average net assets (f)(g) 3.52% 4.11% Portfolio turnover rate ................................... 10%(e) 21%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class A shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Accompanying Notes to Financial Statements 68 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA OREGON MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS B SHARES 2003(a) 2002(b) ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 12.50 $ 12.52 ------------ ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) .............................. 0.24 0.06 Net realized and unrealized gain (loss) on investments . (0.23) 0.08 ------------ ------------ Total from investment operations ..................... 0.01 0.14 ------------ ------------ LESS DISTRIBUTIONS: From net investment income ............................. (0.25) (0.07) Distributions from capital gains ....................... (0.01) (0.09) ------------ ------------ Total distributions .................................. (0.26) (0.16) ------------ ------------ NET ASSET VALUE, END OF PERIOD ............................ $ 12.25 $ 12.50 ------------ ------------ TOTAL RETURN (d)(e) ....................................... 0.05% 1.10% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .................. $ 999 $ 373 Ratio of expenses to average net assets (f)(g) ............ 1.86% 1.67% Ratio of net investment income to average net assets (f)(g) 2.83% 3.36% Portfolio turnover rate ................................... 10%(e) 21%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class B shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Accompanying Notes to Financial Statements 69 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA OREGON MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS D SHARES 2003(a) 2002(b) ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 12.50 $ 12.52 ------------ ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) .............................. 0.27 0.07 Net realized and unrealized gain (loss) on investments . (0.23) 0.07 ------------ ------------ Total from investment operations ..................... 0.04 0.14 ------------ ------------ LESS DISTRIBUTIONS: From net investment income ............................. (0.28) (0.07) Distributions from capital gains ....................... (0.01) (0.09) ------------ ------------ Total distributions .................................. (0.29) (0.16) ------------ ------------ NET ASSET VALUE, END OF PERIOD ............................ $ 12.25 $ 12.50 ------------ ------------ TOTAL RETURN (d)(e)(f) .................................... 0.32% 1.14% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .................. $ 700 $ 448 Ratio of expenses to average net assets (g)(h) ............ 1.43% 1.32% Ratio of net investment income to average net assets (g)(h) 3.30% 3.71% Waiver (h)(i) ............................................. 0.35% 0.35% Portfolio turnover rate ................................... 10%(f) 21%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class D shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (e) Had the Distributor not waived or reimbursed a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. (i) Amounts represent voluntary waivers of distribution and service fees. See Accompanying Notes to Financial Statements 70 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA OREGON MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED AUGUST 31, YEAR ENDED DECEMBER 31, CLASS Z SHARES ............................ 2003(a) 2002(b) 2001 2000 1999 1998 ----------- --------- --------- --------- ----------- ----------- NET ASSET VALUE, BEGINNING OF PERIOD ...... $ 12.50 $ 12.08 $ 12.13 $ 11.56 $ 12.46 $ 12.47 ----------- --------- --------- --------- ----------- ----------- INCOME FROM INVESTMENT OPERATIONS: Net investment income .................. 0.34(c) 0.55(c) 0.57(d) 0.58 0.56 0.58 Net realized and unrealized gain (loss) on investments ................. (0.23) 0.54 (0.02)(d) 0.58 (0.88) 0.10 ----------- --------- --------- --------- ----------- ----------- Total from investment operations ..... 0.11 1.09 0.55 1.16 (0.32) 0.68 ----------- --------- --------- --------- ----------- ----------- LESS DISTRIBUTIONS: From net investment income ............. (0.35) (0.55) (0.57) (0.58) (0.56) (0.58) From net realized gains ................ (0.01) (0.12) (0.03) (0.01) (0.02) (0.11) ----------- --------- --------- --------- ----------- ----------- Total distributions .................. (0.36) (0.67) (0.60) (0.59) (0.58) (0.69) ----------- --------- --------- --------- ----------- ----------- NET ASSET VALUE, END OF PERIOD ............ $ 12.25 $ 12.50 $ 12.08 $ 12.13 $ 11.56 $ 12.46 ----------- --------- --------- --------- ----------- ----------- TOTAL RETURN (e) .......................... 0.83%(f) 9.24% 4.55% 10.28% (2.65)% 5.58% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .. $ 485,427 $ 508,865 $ 491,638 $ 436,544 $ 409,919 $ 462,809 Ratio of expenses to average net assets (g) 0.68%(h) 0.58% 0.57% 0.58% 0.57% 0.58% Ratio of net investment income to average net assets (g) ................... 4.13%(h) 4.45% 4.64%(d) 4.92% 4.64% 4.60% Portfolio turnover rate ................... 10%(f) 21% 14% 22% 28% 17%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were redesignated Class Z shares. (c) Per share data was calculated using average shares outstanding during the period. (d) Effective January 1, 2001, the Fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and accreting discount on all debt securities. The effect of this change for the year ended December 31, 2001, was less than $0.01 to net investment income and net realized and unrealized loss per share and less than 0.01% to the ratio of net investment income to average net assets. Per share data and ratios for the periods prior to December 31, 2001 have not been restated to reflect this change in presentation. (e) Total return at net asset value assuming all distributions reinvested. (f) Not Annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. See Accompanying Notes to Financial Statements 71 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS A SHARES 2003(a) 2002(b) ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 8.37 $ 8.17 ------------ ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) .............................. 0.33 0.09 Net realized and unrealized gain on investments ........ 0.15 0.20 ------------ ------------ Total from investment operations ..................... 0.48 0.29 ------------ ------------ LESS DISTRIBUTIONS: From net investment income ............................. (0.36) (0.09) ------------ ------------ NET ASSET VALUE, END OF PERIOD ............................ $ 8.49 $ 8.37 ------------ ------------ TOTAL RETURN (d)(e) ....................................... 5.81% 3.50% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .................. $ 193,267 $ 33,992 Ratio of expenses to average net assets (f)(g) ............ 1.07% 1.15% Ratio of net investment income to average net assets (f)(g) 5.82% 6.46% Portfolio turnover rate ................................... 38%(e) 42%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class A shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Accompanying Notes to Financial Statements 72 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS B SHARES 2003(a) 2002(b) ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 8.37 $ 8.17 ------------ ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) .............................. 0.28 0.07 Net realized and unrealized gain on investments ........ 0.15 0.20 ------------ ------------ Total from investment operations ..................... 0.43 0.27 ------------ ------------ LESS DISTRIBUTIONS: From net investment income ............................. (0.31) (0.07) ------------ ------------ NET ASSET VALUE, END OF PERIOD ............................ $ 8.49 $ 8.37 ------------ ------------ TOTAL RETURN (d)(e) ....................................... 5.20% 3.33% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .................. $ 89,950 $ 16,701 Ratio of expenses to average net assets (f)(g) ............ 1.94% 1.90% Ratio of net investment income to average net assets (f)(g) 4.93% 5.71% Portfolio turnover rate ................................... 38%(e) 42%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class B shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Accompanying Notes to Financial Statements 73 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED PERIOD ENDED AUGUST 31, DECEMBER 31, CLASS D SHARES 2003(a) 2002(b) ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD ...................... $ 8.37 $ 8.17 ------------ ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) .............................. 0.29 0.07 Net realized and unrealized gain on investments ........ 0.15 0.20 ------------ ------------ Total from investment operations ..................... 0.44 0.27 ------------ ------------ LESS DISTRIBUTIONS: From net investment income ............................. (0.32) (0.07) ------------ ------------ NET ASSET VALUE, END OF PERIOD ............................ $ 8.49 $ 8.37 ------------ ------------ TOTAL RETURN (d)(e)(f) .................................... 5.35% 3.35% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .................. $ 103,559 $ 18,035 Ratio of expenses to average net assets (g)(h) ............ 1.73% 1.75% Ratio of net investment income to average net assets (g)(h) 5.12% 5.86% Waiver (h)(i) ............................................. 0.15% 0.15% Portfolio turnover rate ................................... 38%(f) 42%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Class D shares were initially offered on November 1, 2002. Per share data and total return reflect activity from that date. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge. (e) Had the Distributor not waived a portion of expenses, total return would have been reduced. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. (i) Amounts represent voluntary waivers of distribution and service fees. See Accompanying Notes to Financial Statements 74 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED AUGUST 31, YEAR ENDED DECEMBER 31, CLASS Z SHARES 2003(a) 2002(b) 2001 2000 1999 1998 ------------ ---------- --------- -------- --------- --------- NET ASSET VALUE, BEGINNING OF PERIOD ...... $ 8.37 $ 8.87 $ 8.98 $ 9.32 $ 9.84 $ 10.04 ------------ ---------- --------- -------- --------- --------- INCOME FROM INVESTMENT OPERATIONS: Net investment income .................. 0.35(c) 0.57(c) 0.67(d) 0.75 0.74 0.76 Net realized and unrealized gain (loss) on investments ................ 0.15 (0.48) (0.09)(d) (0.34) (0.51) (0.15) ------------ ---------- --------- -------- --------- --------- Total from investment operations ..... 0.50 0.09 0.58 0.41 0.23 0.61 ------------ ---------- --------- -------- --------- --------- LESS DISTRIBUTIONS: From net investment income ............. (0.38) (0.59) (0.69) (0.75) (0.74) (0.76) From net realized gains ................ -- -- -- -- (0.01) (0.05) ------------ ---------- --------- -------- --------- --------- Total distributions .................. (0.38) (0.59) (0.69) (0.75) (0.75) (0.81) ------------ ---------- --------- -------- --------- --------- NET ASSET VALUE, END OF PERIOD ............ $ 8.49 $ 8.37 $ 8.87 $ 8.98 $ 9.32 $ 9.84 ------------ ---------- --------- -------- --------- --------- TOTAL RETURN (e) .......................... 6.04%(f) 1.17% 6.63% 4.61% 2.38% 6.26% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) .. $ 1,197,340 $ 702,785 $ 238,994 $ 97,575 $ 71,678 $ 57,524 Ratio of expenses to average net assets (g) 0.82%(h) 0.77% 0.85% 0.93% 0.91% 0.95% Ratio of net investment income to average net assets (g) .................. 6.19%(h) 6.84% 7.47%(d) 8.22% 7.71% 7.52% Portfolio turnover rate ................... 38%(f) 42% 69% 50% 49% 79%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were redesignated Class Z shares. (c) Per share data was calculated using average shares outstanding during the period. (d) Effective January 1, 2001, the Fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and accreting discount all debt securities. The effect of this change for the year ended December 31, 2001, was to decrease net investment income per share by $0.02, decrease net unrealized and realized loss per share by $0.02, and decrease the ratio of net investment income to average net assets from 7.64% to 7.47%. Per share data and ratios for periods prior to December 31, 2001 have not been restated to reflect this change in presentation. (e) Total return at net asset value assuming all distributions reinvested. (f) Not annualized. (g) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (h) Annualized. See Accompanying Notes to Financial Statements 75 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- COLUMBIA DAILY INCOME COMPANY FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
PERIOD ENDED AUGUST 31, YEAR ENDED DECEMBER 31, CLASS Z SHARES 2003(a) 2002(b) 2001 2000 1999 1998 ------------ ----------- ----------- ----------- ----------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD ...... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 ------------ ----------- ----------- ----------- ----------- ------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income .................. 0.004(c) 0.012(c) 0.036 0.058 0.046 0.050 ------------ ----------- ----------- ----------- ----------- ------------ LESS DISTRIBUTIONS: From net investment income ............. (0.004) (0.012) (0.036) (0.058) (0.046) (0.050) ------------ ----------- ----------- ----------- ----------- ------------ NET ASSET VALUE, END OF PERIOD ............ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 ------------ ----------- ----------- ----------- ----------- ------------ TOTAL RETURN (d) .......................... 0.40%(e) 1.17% 3.70% 6.00% 4.71% 5.09% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands)... $ 898,164 $ 1,136,075 $ 1,253,535 $ 1,198,151 $ 1,165,289 $ 1,109,141 Ratio of expenses to average net assets (f) 0.69%(g) 0.60% 0.60% 0.60% 0.64% 0.62% Ratio of net investment income to average net assets (f) ................ 0.53%(g) 1.16% 3.61% 5.82% 4.61% 4.97%
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing shares were redesignated Class Z shares. (c) Per share data was calculated using average shares outstanding during the period. (d) Total return at net asset value assuming all distributions reinvested. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. See Accompanying Notes to Financial Statements 76 This page intentionally left blank. 77 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA COMMON STOCK FUND AUGUST 31, 2003 SHARES VALUE - ----------------------------------------------------------------------------- COMMON STOCKS (98.9%) CONSUMER DISCRETIONARY (18.5%) HOTELS, RESTAURANTS & LEISURE (4.6%) Hilton Hotels Corp...................... 161,600 $ 2,469,248 McDonald's Corp......................... 277,650 6,224,913 Royal Caribbean Cruises Ltd............. 148,000 4,610,200 Yum! Brands, Inc. (a)................... 209,800 6,220,570 ------------- 19,524,931 ------------- INTERNET & CATALOG RETAIL (0.8%) eBay, Inc. (a).......................... 61,940 3,430,237 ------------- MEDIA (3.8%) AOL Time Warner, Inc. (a)............... 265,864 4,349,535 Clear Channel Communications, Inc. (a)............................. 47,125 2,126,280 Comcast Corp., Class A (a).............. 71,667 2,132,093 Interpublic Group of Companies, Inc. ................................ 92,300 1,398,345 Liberty Media Corp., Class A (a)........ 354,411 4,288,373 Viacom, Inc., Class B (a)............... 44,500 2,002,500 ------------- 16,297,126 ------------- MULTI-LINE RETAIL (5.4%) Dollar General Corp..................... 174,350 3,997,846 Kohl's Corp. (a)........................ 129,260 8,175,695 Target Corp. ........................... 165,450 6,717,270 Wal-Mart Stores, Inc.................... 72,235 4,274,145 ------------- 23,164,956 ------------- SPECIALTY RETAIL (2.4%) Best Buy Co., Inc. (a).................. 85,550 4,449,456 Linens'n Things, Inc. (a)............... 114,500 3,309,050 Lowe's Companies, Inc................... 44,325 2,431,670 ------------- 10,190,176 ------------- TEXTILES, APPAREL & LUXURY GOODS (1.5%) NIKE, Inc., Class B..................... 58,750 3,347,575 Reebok International Ltd................ 93,700 3,134,265 ------------- 6,481,840 ------------- CONSUMER STAPLES (4.3%) BEVERAGES (1.0%) PepsiCo, Inc............................ 91,675 4,083,204 ------------- FOOD PRODUCTS (0.2%) Hershey Foods Corp. .................... 14,300 999,570 ------------- HOUSEHOLD PRODUCTS (0.3%) Procter & Gamble Co..................... 14,075 1,228,607 ------------- SHARES VALUE - ----------------------------------------------------------------------------- PERSONAL PRODUCTS (1.2%) Alberto-Culver Co., Class B............. 64,650 $ 3,690,222 Gillette Co............................. 46,100 1,496,406 ------------- 5,186,628 ------------- TOBACCO (1.6%) Altria Group, Inc....................... 164,700 6,788,934 ------------- ENERGY (8.1%) ENERGY EQUIPMENT & SERVICES (3.7%) BJ Services Co. (a)..................... 84,440 3,155,523 Cooper Cameron Corp. (a)................ 20,930 1,016,361 ENSCO International, Inc................ 78,900 2,205,255 Nabors Industries Ltd. (a).............. 79,300 3,183,895 Noble Corp. (a)......................... 92,540 3,348,097 Schlumberger Ltd........................ 57,900 2,866,629 ------------- 15,775,760 ------------- OIL & GAS (4.4%) Apache Corp............................. 73,344 5,059,269 ConocoPhillips.......................... 42,725 2,385,764 Devon Energy Corp....................... 39,225 2,029,894 EOG Resources, Inc...................... 36,750 1,558,200 Equitable Resources, Inc................ 40,100 1,582,747 Exxon Mobil Corp........................ 135,782 5,118,981 Pioneer Natural Resources Co. (a).............................. 40,600 1,029,616 ------------- 18,764,471 ------------- FINANCIALS (20.6%) BANKS (4.1%) Bank of America Corp.................... 114,005 9,034,896 Bank One Corp. ......................... 98,625 3,892,729 Fifth Third Bancorp..................... 14,100 826,260 U.S. Bancorp............................ 33,800 807,820 Wells Fargo & Co........................ 62,300 3,123,722 ------------- 17,685,427 ------------- DIVERSIFIED FINANCIALS (11.2%) American Express Co..................... 190,475 8,580,899 Citigroup, Inc.......................... 482,964 20,936,489 Fannie Mae.............................. 38,525 2,496,035 Goldman Sachs Group, Inc................ 34,400 3,044,056 J.P. Morgan Chase & Co. ................ 61,685 2,110,861 MBNA Corp............................... 150,900 3,522,006 Merrill Lynch & Co., Inc................ 77,875 4,188,118 Morgan Stanley.......................... 63,375 3,092,066 ------------- 47,970,530 ------------- See Accompanying Notes to Financial Statements 78 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- SHARES VALUE - ----------------------------------------------------------------------------- INSURANCE (5.3%) American International Group, Inc. ................................ 102,937 $ 6,131,957 Chubb Corp.............................. 85,300 5,795,282 Hartford Financial Services Group, Inc. ................................ 84,300 4,486,446 Marsh & McLennan Companies, Inc. ................................ 41,575 2,078,750 Prudential Financial, Inc............... 115,200 4,194,432 ------------- 22,686,867 ------------- HEALTH CARE (13.4%) BIOTECHNOLOGY (1.3%) Amgen, Inc. (a)......................... 67,057 4,419,056 Gilead Sciences, Inc. (a)............... 16,050 1,069,071 ------------- 5,488,127 ------------- HEALTH CARE EQUIPMENT & SUPPLIES (1.3%) Applera Corp. - Applied Biosystems Group................................ 83,900 1,825,664 Becton, Dickinson & Co.................. 106,200 3,880,548 ------------- 5,706,212 ------------- HEALTH CARE PROVIDERS & SERVICES (2.4%) Aetna, Inc.............................. 34,600 1,972,200 Caremark Rx, Inc. (a)................... 100,900 2,535,617 McKesson Corp........................... 87,775 2,873,754 UnitedHealth Group, Inc................. 16,300 805,709 WellPoint Health Networks, Inc. (a)............................. 25,050 1,953,900 ------------- 10,141,180 ------------- PHARMACEUTICALS (8.4%) Bristol-Myers Squibb Co................. 173,518 4,402,152 Forest Laboratories, Inc. (a)........... 40,500 1,903,500 Johnson & Johnson....................... 139,975 6,939,960 Medco Health Solutions, Inc. (a)........ 3,642 97,245 Novartis AG, ADR........................ 108,000 3,992,760 Pfizer, Inc............................. 420,239 12,573,551 Shire Pharmaceuticals Group PLC, ADR (a)......................... 105,500 2,452,875 Wyeth................................... 90,350 3,871,498 ------------- 36,233,541 ------------- INDUSTRIALS (12.1%) AEROSPACE & DEFENSE (2.3%) L-3 Communications Holdings, Inc. (a)............................. 100,200 5,119,218 Northrop Grumman Corp. ................. 48,300 4,611,684 ------------- 9,730,902 ------------- SHARES VALUE - ----------------------------------------------------------------------------- AIR FREIGHT & LOGISTICS (1.1%) FedEx Corp.............................. 32,875 $ 2,205,912 Ryder System, Inc....................... 78,500 2,357,355 ------------- 4,563,267 ------------- COMMERCIAL SERVICES & SUPPLIES (1.8%) First Data Corp......................... 47,150 1,810,560 Waste Management, Inc. ................. 219,900 5,851,539 ------------- 7,662,099 ------------- ELECTRICAL EQUIPMENT (0.5%) Emerson Electric Co..................... 38,900 2,169,064 ------------- INDUSTRIAL CONGLOMERATES (4.2%) 3M Co................................... 30,525 4,348,897 General Electric Co..................... 466,700 13,800,319 ------------- 18,149,216 ------------- MACHINERY (2.2%) Deere & Co.............................. 90,000 5,085,900 Dover Corp.............................. 62,200 2,364,844 SPX Corp. (a)........................... 44,600 2,201,010 ------------- 9,651,754 ------------- INFORMATION TECHNOLOGY (19.1%) COMMUNICATIONS EQUIPMENT (2.6%) Cisco Systems, Inc. (a)................. 223,190 4,274,088 Emulex Corp. (a)........................ 102,810 2,489,030 Motorola, Inc. ......................... 142,000 1,523,660 QUALCOMM, Inc........................... 66,375 2,739,960 ------------- 11,026,738 ------------- COMPUTERS & PERIPHERALS (0.4%) EMC Corp. (a)........................... 125,400 1,598,850 ------------- INTERNET SOFTWARE & SERVICES (0.9%) Yahoo!, Inc. (a)........................ 111,300 3,717,420 ------------- OFFICE ELECTRONICS (0.1%) Xerox Corp. (a)......................... 53,400 573,900 ------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS (7.4%) Advanced Micro Devices, Inc. (a)........ 232,200 2,621,538 Broadcom Corp., Class A (a)............. 84,200 2,300,344 Intel Corp.............................. 175,675 5,027,818 Linear Technology Corp.................. 86,000 3,544,920 Marvell Technology Group Ltd. (a)....... 69,900 2,947,683 National Semiconductor Corp. (a)........ 103,425 3,013,804 NVIDIA Corp. (a)........................ 152,900 2,776,664 Silicon Laboratories, Inc. (a).......... 77,200 3,428,452 Taiwan Semiconductor Manufacturing Co., Ltd., ADR (a)..... 297,021 3,498,907 Vitesse Semiconductor Corp. (a)......... 154,300 1,053,869 Xilinx, Inc. (a)........................ 58,800 1,813,392 ------------- 32,027,391 ------------- See Accompanying Notes to Financial Statements 79 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA COMMON STOCK FUND (CONT.) AUGUST 31, 2003 SHARES VALUE - ----------------------------------------------------------------------------- SOFTWARE (7.7%) Amdocs Ltd. (a)......................... 128,200 $ 2,869,116 BEA Systems, Inc. (a)................... 98,600 1,336,030 Computer Associates International, Inc................... 77,800 1,994,014 Mercury Interactive Corp. (a)........... 55,900 2,453,451 Microsoft Corp.......................... 575,925 15,273,531 Oracle Corp. (a)........................ 297,640 3,803,839 Symantec Corp. (a)...................... 35,725 2,051,687 VERITAS Software Corp. (a).............. 92,400 3,185,952 ------------- 32,967,620 ------------- MATERIALS (1.6%) CHEMICALS (1.0%) Air Products & Chemicals, Inc........... 49,150 2,325,778 Praxair, Inc............................ 34,925 2,228,914 ------------- 4,554,692 ------------- CONTAINERS & PACKAGING (0.6%) Smurfit-Stone Container Corp. (a)....... 155,000 2,445,900 ------------- TELECOMMUNICATION SERVICES (0.6%) DIVERSIFIED TELECOMMUNICATION SERVICES (0.6%) SBC Communications, Inc................. 53,530 1,203,890 Verizon Communications, Inc............. 41,870 1,478,848 ------------- 2,682,738 ------------- UTILITIES (0.6%) ELECTRIC UTILITIES (0.6%) Consolidated Edison, Inc................ 27,000 1,067,310 DTE Energy Co........................... 43,000 1,501,130 ------------- 2,568,440 ------------- Total Common Stocks (Cost of $349,417,672)............... 423,918,315 ------------- PREFERRED STOCK (0.6%) CONSUMER DISCRETIONARY (0.6%) MEDIA (0.6%) News Corp., Ltd., ADR (Cost of $1,862,298)................. 88,225 2,551,466 ------------- PAR VALUE - ----------------------------------------------------------------------------- SHORT-TERM OBLIGATION (3.1%) Repurchase agreement with State Street Bank & Trust Co., dated 08/29/03, due 09/02/03 at 0.860%, collateralized by a U.S. Treasury Note maturing 11/15/03, market value of $13,458,826 (repurchase proceeds $13,194,261) (Cost of $13,193,000)................ $13,193,000 $ 13,193,000 ------------- TOTAL INVESTMENTS (102.6%) (Cost of $364,472,970) (b)........... 439,662,781 ------------- OTHER ASSETS & LIABILITIES, NET (-2.6%)...... (11,038,063) ------------- NET ASSETS (100.0%).......................... $ 428,624,718 ============= NOTES TO SCHEDULE OF INVESTMENTS: (a) Non-income producing. (b) Cost for federal income tax purposes is $369,008,558. ACRONYM NAME ------- ---- ADR American Depositary Receipt COLUMBIA GROWTH FUND AUGUST 31, 2003 SHARES VALUE - ----------------------------------------------------------------------------- COMMON STOCKS (98.8%) CONSUMER DISCRETIONARY (18.0%) HOTELS, RESTAURANTS & LEISURE (1.2%) Wendy's International, Inc.............. 223,620 $ 7,055,211 Yum! Brands, Inc. (a)................... 128,580 3,812,397 ------------- 10,867,608 ------------- HOUSEHOLD DURABLES (0.6%) Garmin Ltd.............................. 93,000 3,717,210 Matsushita Electric Industrial Co., Ltd., ADR............................ 156,500 2,004,765 ------------- 5,721,975 ------------- INTERNET & CATALOG RETAIL (2.2%) eBay, Inc. (a).......................... 216,000 11,962,080 InterActiveCorp (a)..................... 238,750 8,836,137 ------------- 20,798,217 ------------- See Accompanying Notes to Financial Statements 80 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- SHARES VALUE - ----------------------------------------------------------------------------- MEDIA (3.7%) Clear Channel Communications, Inc. (a)............................. 309,831 $ 13,979,575 Liberty Media Corp., Class A (a)........ 840,295 10,167,570 Viacom, Inc., Class B................... 170,090 7,654,050 XM Satellite Radio Holdings, Inc., Class A (a).......................... 197,400 2,704,380 ------------- 34,505,575 ------------- MULTI-LINE RETAIL (3.9%) Kohl's Corp. (a)........................ 276,454 17,485,716 Target Corp............................. 470,990 19,122,194 ------------- 36,607,910 ------------- SPECIALTY RETAIL (6.4%) AutoZone, Inc. (a)...................... 123,200 11,309,760 Bed Bath & Beyond, Inc. (a)............. 178,360 7,674,831 Chico's FAS, Inc. (a)................... 346,300 11,251,287 Home Depot, Inc......................... 506,700 16,295,472 Lowe's Companies, Inc................... 230,500 12,645,230 ------------- 59,176,580 ------------- CONSUMER STAPLES (10.1%) BEVERAGES (3.6%) Anheuser-Busch Companies, Inc........... 65,670 3,384,632 Coca-Cola Co............................ 266,380 11,592,858 PepsiCo, Inc............................ 404,740 18,027,120 ------------- 33,004,610 ------------- FOOD & DRUG RETAILING (1.3%) Sysco Corp.............................. 204,110 6,421,301 Whole Foods Market, Inc. (a)............ 110,400 5,984,784 ------------- 12,406,085 ------------- FOOD & STAPLES RETAILING (2.6%) Wal-Mart Stores, Inc.................... 409,990 24,259,108 ------------- FOOD PRODUCTS (1.0%) Dean Foods Co. (a)...................... 307,700 8,938,685 ------------- HOUSEHOLD PRODUCTS (0.9%) Procter & Gamble Co..................... 99,260 8,664,405 ------------- PERSONAL PRODUCTS (0.7%) Alberto-Culver Co., Class B............. 121,830 6,954,056 ------------- ENERGY (3.4%) ENERGY EQUIPMENT & SERVICES (2.9%) BJ Services Co. (a)..................... 137,790 5,149,212 Nabors Industries Ltd. (a).............. 146,550 5,883,982 Noble Corp. (a)......................... 98,250 3,554,685 Schlumberger Ltd........................ 133,700 6,619,487 Smith International, Inc. (a)........... 158,200 6,184,038 ------------- 27,391,404 ------------- SHARES VALUE - ----------------------------------------------------------------------------- OIL & GAS (0.5%) Apache Corp............................. 66,000 $ 4,552,680 ------------- FINANCIALS (6.7%) CAPITAL MARKETS (1.1%) Goldman Sachs Group, Inc................ 116,490 10,308,200 ------------- DIVERSIFIED FINANCIALS (3.0%) Citigroup, Inc.......................... 642,626 27,857,837 ------------- INSURANCE (1.3%) American International Group, Inc....... 201,014 11,974,404 ------------- THRIFTS & MORTGAGE FINANCE (1.3%) Fannie Mae.............................. 192,930 12,499,935 ------------- HEALTH CARE (24.1%) BIOTECHNOLOGY (3.5%) Amgen, Inc. (a)......................... 388,700 25,615,330 Gilead Sciences, Inc. (a)............... 96,900 6,463,230 ------------- 32,078,560 ------------- HEALTH CARE EQUIPMENT & SUPPLIES (5.5%) Alcon, Inc.............................. 294,100 15,366,725 Boston Scientific Corp. (a)............. 148,370 8,917,037 Medtronic, Inc. ........................ 356,155 17,658,165 St. Jude Medical, Inc. (a).............. 174,100 9,065,387 ------------- 51,007,314 ------------- HEALTH CARE PROVIDERS & SERVICES (3.1%) Anthem, Inc. (a)........................ 81,350 5,954,820 Caremark Rx, Inc. (a)................... 234,200 5,885,446 McKesson Corp........................... 189,800 6,214,052 UnitedHealth Group, Inc................. 213,520 10,554,294 ------------- 28,608,612 ------------- PHARMACEUTICALS (12.0%) Abbott Laboratories..................... 207,600 8,366,280 Biovail Corp. (a)....................... 270,300 11,225,559 Johnson & Johnson....................... 272,550 13,513,029 Pfizer, Inc............................. 1,608,333 48,121,323 Teva Pharmaceutical Industries Ltd., ADR............................ 213,470 12,533,251 Watson Pharmaceuticals, Inc. (a)........ 234,100 9,621,510 Wyeth................................... 200,010 8,570,428 ------------- 111,951,380 ------------- INDUSTRIALS (6.5%) AEROSPACE & DEFENSE (0.6%) L-3 Communications Holdings, Inc. (a)............................. 102,400 5,231,616 ------------- AIR FREIGHT & LOGISITICS (0.7%) FedEx Corp.............................. 102,500 6,877,750 ------------- See Accompanying Notes to Financial Statements 81 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA GROWTH FUND (CONT.) AUGUST 31, 2003 SHARES VALUE - ----------------------------------------------------------------------------- INDUSTRIAL CONGLOMERATES (5.2%) General Electric Co..................... 1,289,785 $ 38,138,942 Tyco International Ltd.................. 478,400 9,845,472 ------------- 47,984,414 ------------- INFORMATION TECHNOLOGY (28.7%) COMMUNICATIONS EQUIPMENT (5.3%) Cisco Systems, Inc. (a)................. 1,473,875 28,224,706 Juniper Networks, Inc. (a).............. 43,400 747,348 Motorola, Inc. ......................... 178,200 1,912,086 Nokia Oyj, ADR.......................... 61,900 1,008,351 QUALCOMM, Inc........................... 138,800 5,729,664 UTStarcom, Inc. (a)..................... 259,300 11,139,528 ------------- 48,761,683 ------------- COMPUTERS & PERIPHERALS (2.9%) Apple Computer, Inc. (a)................ 131,500 2,975,845 Dell, Inc. (a).......................... 610,690 19,926,815 Lexmark International, Inc. (a)......... 55,550 3,724,072 ------------- 26,626,732 ------------- INTERNET SOFTWARE & SERVICES (0.9%) Sohu.com, Inc. (a)...................... 24,300 729,486 Yahoo!, Inc. (a)........................ 227,400 7,595,160 ------------- 8,324,646 ------------- IT SERVICES (1.7%) Concord EFS, Inc. (a)................... 488,100 6,760,185 First Data Corp......................... 240,540 9,236,736 ------------- 15,996,921 ------------- OFFICE ELECTRONICS (0.2%) Canon, Inc., ADR........................ 45,700 2,214,622 ------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS (10.0%) Advanced Micro Devices, Inc. (a)........ 401,300 4,530,677 Analog Devices, Inc. (a)............... 126,000 5,166,000 ASML Holding NV, NY Registered Shares (a)............. 363,600 5,781,240 Infineon Technologies AG, ADR (a)....... 160,500 2,359,350 Intel Corp.............................. 1,562,870 44,729,339 Intersil Corp., Class A (a)............. 48,500 1,412,805 Marvell Technology Group Ltd. (a)....... 146,500 6,177,905 Maxim Integrated Products, Inc.......... 27,600 1,239,516 Microchip Technology, Inc............... 92,350 2,586,724 NVIDIA Corp. (a)........................ 230,550 4,186,788 PMC-Sierra, Inc. (a).................... 398,600 5,684,036 Taiwan Semiconductor Manufacturing Co., Ltd., ADR (a)..... 473,900 5,582,542 SHARES VALUE - ----------------------------------------------------------------------------- Texas Instruments, Inc.................. 60,820 $ 1,450,557 Xilinx, Inc. (a)........................ 61,500 1,878,487 ------------- 92,765,966 ------------- SOFTWARE (7.7%) Adobe Systems, Inc...................... 143,200 5,560,456 Amdocs Ltd. (a)......................... 148,000 3,312,240 Electronic Arts, Inc. (a)............... 74,030 6,644,192 Microsoft Corp.......................... 1,618,100 42,912,012 Oracle Corp. (a)........................ 553,490 7,073,602 VERITAS Software Corp. (a).............. 176,800 6,096,064 ------------- 71,598,566 ------------- TELECOMMUNICATION SERVICES (1.3%) DIVERSIFIED TELECOMMUNICATION SERVICES (0.2%) Verizon Communications, Inc............. 49,100 1,734,212 ------------- WIRELESS TELECOMMUNICATION SERVICES (1.1%) American Tower Corp., Class A (a).......................... 427,600 4,866,088 AT&T Wireless Services, Inc. (a)........ 363,800 3,135,956 Crown Castle International Corp. (a)............................ 188,460 2,025,945 ------------- 10,027,989 ------------- Total Common Stocks (Cost of $738,395,893)............... 918,280,257 ------------- PREFERRED STOCK (0.6%) CONSUMER DISCRETIONARY (0.6%) MEDIA (0.6%) News Corp., Ltd., ADR (Cost of $4,078,855)................. 181,825 5,258,379 ------------- SHORT-TERM OBLIGATION (1.9%) PAR Repurchase agreement with State Street Bank & Trust Co., dated 08/29/03, due 09/02/03 at 0.860%, collateralized by a U.S. Treasury Note maturing 03/31/05, market value $18,291,000 (repurchase proceeds $17,933,714) (Cost of $17,932,000)................ $17,932,000 17,932,000 ------------- TOTAL INVESTMENTS (101.3%) (Cost of $760,406,748) (b)........... 941,470,636 ------------- OTHER ASSETS & LIABILITIES, NET (-1.3%)...... (11,734,384) ------------- NET ASSETS (100.0%).......................... $ 929,736,252 ============= NOTES TO SCHEDULE OF INVESTMENTS: (a) Non-income producing. (b) Cost for federal income tax purposes is $785,885,764. ACRONYM NAME ------- ---- ADR American Depositary Receipt See Accompanying Notes to Financial Statements 82 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA INTERNATIONAL STOCK FUND AUGUST 31, 2003 SHARES VALUE - ----------------------------------------------------------------------------- COMMON STOCKS (95.3%) CONSUMER DISCRETIONARY (17.4%) AUTO COMPONENTS (0.2%) F.C.C. Co., Ltd. ....................... 19,900 $ 586,674 Nissan Shatai Co., Ltd.................. 2,500 8,120 ------------- 594,794 ------------- AUTOMOBILES (1.0%) Honda Motor Co., Ltd.................... 38,600 1,571,325 Nissan Motor Co., Ltd................... 108,000 1,159,738 ------------- 2,731,063 ------------- HOTELS, RESTAURANTS & LEISURE (1.0%) Accor SA................................ 68,322 2,665,648 ------------- HOUSEHOLD DURABLES (5.0%) Koninklijke (Royal) Philips Electronics NV....................... 135,200 3,299,635 Matsushita Electric Industrial Co., Ltd............................. 435,000 5,547,243 Pioneer Corp............................ 146,600 3,291,700 Sanyo Electric Co., Ltd................. 455,000 1,848,310 ------------- 13,986,888 ------------- INTERNET & CATALOG RETAIL (0.1%) Belluna Co., Ltd........................ 7,600 299,610 ------------- MEDIA (4.3%) BEC World PCL........................... 144,500 865,101 British Sky Broadcasting PLC (a)........ 239,100 2,496,935 JC Decaux SA (a)........................ 116,700 1,554,926 Pearson PLC............................. 422,600 4,119,909 VNU NV.................................. 100,900 3,139,162 ------------- 12,176,033 ------------- MULTI-LINE RETAIL (1.5%) Don Quijote Co., Ltd.................... 14,600 725,715 Seiyu Ltd. (a).......................... 326,000 771,102 Wal-Mart de Mexico SA de CV, Class V.............................. 1,014,000 2,770,274 ------------- 4,267,091 ------------- SPECIALTY RETAIL (2.7%) Kesa Electricals PLC (a)................ 105,820 373,091 Kingfisher PLC.......................... 462,962 1,986,479 Next PLC................................ 160,558 2,725,297 Shimamura Co., Ltd...................... 24,000 1,618,717 USS Co., Ltd............................ 16,720 965,787 ------------- 7,669,371 ------------- SHARES VALUE - ----------------------------------------------------------------------------- TEXTILES, APPAREL & LUXURY GOODS (1.6%) LVMH Moet Hennessy Louis Vuitton SA........................... 35,100 $ 2,112,649 Puma AG................................. 16,400 1,864,235 Sanyo Shokai Ltd........................ 94,000 589,690 ------------- 4,566,574 ------------- CONSUMER STAPLES (4.6%) BEVERAGES (0.7%) Pernod-Ricard SA........................ 22,050 1,894,409 ------------- FOOD & DRUG RETAILING (0.4%) Seven-Eleven Japan Co., Ltd............. 38,000 1,038,865 ------------- FOOD PRODUCTS (1.0%) Nestle SA, Registered Shares............ 9,156 1,995,199 Thai Union Frozen Products PCL.......... 465,200 350,967 Yakult Honsha Co., Ltd.................. 42,000 579,509 ------------- 2,925,675 ------------- HOUSEHOLD PRODUCTS (1.0%) Reckitt Benckiser PLC................... 143,360 2,691,192 ------------- PERSONAL PRODUCTS (0.6%) L'Oreal SA.............................. 24,720 1,720,237 ------------- TOBACCO (0.9%) Imperial Tobacco Group PLC.............. 166,900 2,601,255 ------------- ENERGY (4.8%) OIL & GAS (4.8%) BP PLC.................................. 110,318 746,575 BP PLC, ADR............................. 120,300 5,018,916 EnCana Corp............................. 54,700 2,051,497 ENI S.p.A. ............................. 270,750 4,095,652 Total SA................................ 9,875 1,516,595 ------------- 13,429,235 ------------- FINANCIALS (21.7%) BANKS (11.7%) Anglo Irish Bank Corp. PLC.............. 131,200 1,293,551 Banco Popular Espanol SA................ 25,375 1,143,737 Banco Santander Central Hispano SA........................... 413,300 3,530,389 Barclays PLC............................ 392,856 2,850,761 Credit Agricole SA...................... 215,943 4,106,969 Credit Suisse Group..................... 194,780 6,088,397 Fortis Bank Nederland Holding NV (a)(b)(c)......................... 4,100 -- Grupo Financiero BBVA Bancomer, SA de CV, Class B (a)................ 1,696,300 1,375,866 Royal Bank of Scotland Group PLC............................ 72,071 1,789,513 See Accompanying Notes to Financial Statements 83 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA INTERNATIONAL STOCK FUND (CONT.) AUGUST 31, 2003 SHARES VALUE - ----------------------------------------------------------------------------- Siam Commercial Bank Public Co., Ltd. (a)............................. 1,721,300 $ 1,633,748 Standard Chartered PLC.................. 303,322 4,048,032 UFJ Holdings, Inc....................... 727 1,943,900 UniCredito Italiano S.p.A............... 680,200 3,163,102 ------------- 32,967,965 ------------- DIVERSIFIED FINANCIALS (2.7%) Euronext NV............................. 70,300 1,763,629 ING Groep NV............................ 210,700 4,113,805 Nomura Holdings, Inc.................... 118,000 1,717,136 ------------- 7,594,570 ------------- INSURANCE (4.2%) Allianz AG (a).......................... 49,600 4,428,201 Daido Life Insurance.................... 417 979,200 Irish Life & Permanent PLC.............. 127,100 1,510,530 Millea Holdings, Inc.................... 373 3,867,935 Mitsui Sumitomo Insurance Co............ 159,000 949,762 ------------- 11,735,628 ------------- REAL ESTATE (3.1%) Land and Houses PCL, NVDR............... 13,098,000 3,410,771 Mitsubishi Estate Co., Ltd.............. 612,000 5,486,155 ------------- 8,896,926 ------------- HEALTH CARE (9.6%) HEALTH CARE EQUIPMENT & SUPPLIES (2.7%) Olympus Optical Co., Ltd. .............. 149,000 3,422,205 ResMed, Inc. (a)........................ 44,900 1,944,170 Smith & Nephew PLC...................... 345,310 2,211,591 ------------- 7,577,966 ------------- PHARMACEUTICALS (6.9%) Chugai Pharmaceutical Co., Ltd. ........ 191,600 2,029,546 Dr. Reddy's Laboratories, Ltd., ADR..... 58,000 1,470,300 GlaxoSmithKline PLC..................... 140,226 2,669,965 Novartis AG............................. 110,990 4,083,867 Ranbaxy Laboratories Ltd., GDR.......... 77,000 1,778,700 Roche Holding AG........................ 7,296 559,065 Sanofi-Synthelabo SA.................... 26,264 1,478,315 Sawai Pharmaceutical Co., Ltd. ......... 54,000 1,325,877 Stada Arzneimittel AG................... 8,600 498,626 Takeda Chemical Industries Ltd. ........ 27,000 976,475 Taro Pharmaceuticals Industries Ltd. (a)............................. 10,700 577,693 Teva Pharmaceutical Industries Ltd., ADR............................ 35,200 2,066,662 ------------- 19,515,091 ------------- SHARES VALUE - ----------------------------------------------------------------------------- INDUSTRIALS (10.8%) AIRLINES (0.9%) Cathay Pacific Airways Ltd.............. 832,000 $ 1,424,137 Singapore Airlines Ltd.................. 188,000 1,200,935 ------------- 2,625,072 ------------- COMMERCIAL SERVICES & SUPPLIES (3.1%) Adecco SA............................... 52,210 2,640,995 Amadeus Global Travel Distribution SA...................... 705,600 4,731,780 Capita Group PLC........................ 349,975 1,331,907 ------------- 8,704,682 ------------- INDUSTRIAL CONGLOMERATES (2.9%) Big C Supercenter PLC................... 2,815,000 1,281,102 Burberry Group PLC...................... 288,100 1,477,054 JSC MMC Norilsk Nickel, ADR............. 33,500 1,328,275 Siemens AG.............................. 28,800 1,785,697 Smiths Group PLC........................ 192,500 2,137,829 ------------- 8,009,957 ------------- MACHINERY (1.3%) Atlas Copco AB, Class B................. 91,500 2,516,442 Linde AG................................ 30,300 1,269,456 ------------- 3,785,898 ------------- TRADING COMPANIES & DISTRIBUTORS (0.5%) Mitsubishi Corp......................... 156,000 1,318,216 ------------- TRANSPORTATION INFRASTRUCTURE (2.1%) Abertis Infraestructuras, SA............ 72,821 956,667 BAA PLC................................. 220,679 1,587,433 Cosco Pacific Ltd....................... 1,964,000 2,190,826 Zhejiang Expressway Co., Ltd., Class H.............................. 2,500,000 1,210,052 ------------- 5,944,978 ------------- INFORMATION TECHNOLOGY (11.5%) COMMUNICATIONS EQUIPMENT (0.9%) Nortel Networks Corp. (a)............... 768,400 2,496,787 ELECTRONIC EQUIPMENT & INSTRUMENTS (2.0%) Ibiden Co., Ltd......................... 89,000 1,442,336 Keyence Corp. .......................... 10,500 2,192,955 TDK Corp................................ 32,200 2,097,270 ------------- 5,732,561 ------------- INFORMATION TECHNOLOGY CONSULTING & SERVICES (0.9%) Indra Sistemas SA....................... 220,500 2,443,460 ------------- INTERNET SOFTWARE & SERVICES (0.7%) T-Online International AG (a)........... 180,700 1,936,863 ------------- OFFICE ELECTRONICS (1.3%) Canon, Inc. ............................ 76,000 3,653,940 ------------- See Accompanying Notes to Financial Statements 84 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- SHARES VALUE - ----------------------------------------------------------------------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS (4.9%) ARM Holdings PLC (a).................... 1,094,800 $ 1,951,565 Samsung Electronics Co., Ltd. .......... 9,000 3,333,333 Taiwan Semiconductor Manufacturing Co., Ltd., ADR (a)..... 351,000 4,134,780 Tokyo Electron Ltd...................... 60,000 4,226,764 ------------- 13,646,442 ------------- SOFTWARE (0.8%) Dassault Systemes SA.................... 64,291 2,325,317 ------------- MATERIALS (6.3%) CHEMICALS (0.9%) L'Air Liquide SA........................ 7,719 1,109,954 Shin-Etsu Chemical Co., Ltd. ........... 32,800 1,287,432 ------------- 2,397,386 ------------- CONSTRUCTION MATERIALS (1.4%) Siam Cement PCL......................... 978,000 4,046,240 ------------- CONTAINERS & PACKAGING (0.8%) Amcor Ltd............................... 395,100 2,316,720 ------------- METALS & MINING (2.0%) BHP Billiton Ltd. ...................... 605,100 4,294,633 Companhia Vale do Rio Doce, ADR......... 40,200 1,372,026 ------------- 5,666,659 ------------- PAPER & FOREST PRODUCTS (1.2%) Stora Enso Oyj, Class R................. 175,700 2,290,829 UPM-Kymmene Oyj......................... 61,800 1,121,008 ------------- 3,411,837 ------------- TELECOMMUNICATION SERVICES (7.1%) DIVERSIFIED TELECOMMUNICATION SERVICES (3.2%) Nippon Telegraph & Telephone Corp................................. 300 1,321,507 PT Telekomunikasi Indonesia, ADR........ 57,100 639,520 Telecom Italia S.p.A.................... 1,174,827 2,763,910 Telefonica SA (a)....................... 363,484 4,283,673 ------------- 9,008,610 ------------- WIRELESS TELECOMMUNICATION SERVICES (3.9%) NTT DoCoMo, Inc......................... 1,737 4,465,870 Vodafone Group PLC...................... 3,500,729 6,392,182 ------------- 10,858,052 ------------- UTILITIES (1.5%) ELECTRIC UTILITIES (0.9%) National Grid Transco PLC............... 432,936 2,644,751 ------------- GAS UTILITIES (0.6%) Snam Rete Gas S.p.A. ................... 442,900 1,621,385 ------------- Total Common Stocks (Cost of $239,143,971).................. 268,141,899 ------------- UNITS VALUE - ----------------------------------------------------------------------------- WARRANTS (0.2%) FINANCIALS (0.2%) BANKS (0.2%) Siam Commercial Bank Public Co., Ltd. (a) expires 06/22/04 (Cost of $359,604)................... 2,771,666 $ 428,330 ------------- INVESTMENT MANAGEMENT COMPANY (0.1%) SHARES Thai Fund, Inc. (Cost of $144,252)................... 35,100 241,839 ------------- SHORT-TERM OBLIGATION (2.3%) PAR Repurchase agreement with State Street Bank & Trust Co., dated 08/31/03, due 09/02/03 at 0.860%, collateralized by a U.S. Treasury Note maturing 02/28/05, market value $6,751,938 (repurchase proceeds $6,616,632) (Cost of $6,616,000)................. $ 6,616,000 6,616,000 ------------- TOTAL INVESTMENTS (97.9%) (Cost of $246,263,827) (d)........... 275,428,068 ------------- OTHER ASSETS & LIABILITIES, NET (2.1%)....... 5,903,491 ------------- NET ASSETS (100.0%).......................... $ 281,331,559 ============= NOTES TO SCHEDULE OF INVESTMENTS: (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 August 31, 2003, this security had no value. (c) Represents fair value as determined in good faith under the direction of the Board of Directors. (d) Cost for federal income tax purposes is $246,594,040. SUMMARY OF SECURITIES % OF TOTAL BY COUNTRY (UNAUDITED) VALUE INVESTMENTS - ----------------------------------------------------------------------------- Japan ..................................... $65,298,103 23.7% United Kingdom............................... 53,852,232 19.6 France ................................. ... 20,485,020 7.4 Spain ..................................... 17,089,706 6.2 Switzerland.................................. 15,367,523 5.6 Netherlands.................................. 12,316,230 4.5 Thailand..................................... 12,024,742 4.4 Germany ..................................... 11,783,078 4.3 Italy ..................................... 11,644,049 4.2 United States*............................... 8,802,009 3.2 Australia.................................... 6,611,353 2.4 Canada ..................................... 4,548,284 1.7 Mexico ..................................... 4,146,140 1.5 See Accompanying Notes to Financial Statements 85 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA INTERNATIONAL STOCK FUND (CONT.) AUGUST 31, 2003 SUMMARY OF SECURITIES % OF TOTAL BY COUNTRY (CONTINUED) VALUE INVESTMENTS - ----------------------------------------------------------------------------- Taiwan ..................................... $ 4,134,780 1.5% Hong Kong.................................... 3,614,963 1.3 Finland ..................................... 3,411,837 1.2 Republic of Korea............................ 3,333,333 1.2 India ..................................... 3,249,000 1.2 Ireland ..................................... 2,804,081 1.0 Israel ..................................... 2,644,355 1.0 Sweden ..................................... 2,516,442 0.9 Brazil ..................................... 1,372,026 0.5 Russian Federation........................... 1,328,275 0.5 China ..................................... 1,210,052 0.4 Singapore.................................... 1,200,935 0.4 Indonesia.................................... 639,520 0.2 ------------ ------------- $275,428,068 100.0% ============ ============= * Includes Short-Term Obligation. Certain securities are listed by country of underlying exposure but may trade predominately on other exchanges. ACRONYM NAME ------- ---- ADR American Depositary Receipt GDR Global Depositary Receipt NVDR Non-Voting Depositary Receipt COLUMBIA MID CAP GROWTH FUND AUGUST 31, 2003 SHARES VALUE - ----------------------------------------------------------------------------- COMMON STOCKS (98.2%) CONSUMER DISCRETIONARY (19.1%) AUTO COMPONENTS (0.8%) Gentex Corp............................. 218,700 $ 8,203,437 ------------- HOTELS, RESTAURANTS & LEISURE (4.9%) Brinker International, Inc. (a)......... 395,440 13,524,048 Darden Restaurants, Inc................. 606,400 13,219,520 MGM Mirage (a).......................... 223,900 8,118,614 Outback Steakhouse, Inc................. 178,950 6,916,418 Starwood Hotels & Resorts Worldwide, Inc....................... 260,400 8,809,332 ------------- 50,587,932 ------------- HOUSEHOLD DURABLES (1.0%) Garmin Ltd.............................. 260,800 10,424,176 ------------- INTERNET & CATALOG RETAIL (1.0%) InterActive Corp. (a)................... 271,200 10,037,112 ------------- SHARES VALUE - ----------------------------------------------------------------------------- LEISURE EQUIPMENT & PRODUCTS (0.4%) Mattel, Inc............................. 212,690 $ 4,109,171 ------------- MEDIA (5.3%) Citadel Broadcasting Corp. (a).......... 196,700 4,343,136 Cox Radio, Inc., Class A (a)............ 493,900 11,922,746 Interpublic Group of Companies, Inc. (a).................. 419,600 6,356,940 Univision Communications, Inc., Class A (a).......................... 679,450 25,472,581 Westwood One, Inc. (a).................. 226,900 7,283,490 ------------- 55,378,893 ------------- MULTI-LINE RETAIL (2.0%) Dollar Tree Stores, Inc. (a)............ 148,100 5,809,963 Family Dollar Stores, Inc............... 191,100 7,666,932 Kohl's Corp. (a)........................ 121,500 7,684,875 ------------- 21,161,770 ------------- SPECIALTY RETAIL (3.7%) Bed Bath & Beyond, Inc. (a)............. 356,700 15,348,801 Chico's FAS, Inc. (a)................... 226,300 7,352,487 Williams-Sonoma, Inc. (a)............... 504,900 15,454,989 ------------- 38,156,277 ------------- CONSUMER STAPLES (1.1%) FOOD & DRUG RETAILING (0.6%) Whole Foods Market, Inc. (a)............ 123,300 6,684,093 ------------- FOOD PRODUCTS (0.5%) Dean Foods Co. (a)...................... 168,400 4,892,020 ------------- ENERGY (7.8%) ENERGY EQUIPMENT & SERVICES (4.3%) BJ Services Co. (a)..................... 470,900 17,597,533 Nabors Industries Ltd. (a).............. 142,050 5,703,308 National-Oilwell, Inc. (a).............. 403,700 7,904,446 Noble Corp. (a)......................... 225,000 8,140,500 Patterson-UTI Energy, Inc. (a).......... 184,450 5,503,988 ------------- 44,849,775 ------------- OIL & GAS (3.5%) Apache Corp............................. 194,472 13,414,679 Cross Timbers Royalty Trust............. 2,375 53,066 Murphy Oil Corp. ....................... 139,700 8,064,881 Valero Energy Corp...................... 186,900 7,363,860 XTO Energy, Inc......................... 321,000 6,737,790 ------------- 35,634,276 ------------- FINANCIALS (4.0%) INSURANCE (4.0%) Ambac Financial Group, Inc.............. 191,500 12,432,180 Arthur J. Gallagher & Co................ 353,250 9,537,750 See Accompanying Notes to Financial Statements 86 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- SHARES VALUE - ----------------------------------------------------------------------------- Axis Capital Holdings Ltd. (a).......... 225,300 $ 5,531,115 Stancorp Financial Group, Inc........... 253,150 14,351,074 ------------- 41,852,119 ------------- HEALTH CARE (23.1%) BIOTECHNOLOGY (1.3%) Gilead Sciences, Inc. (a)............... 136,900 9,131,230 ICOS Corp. (a).......................... 122,200 4,758,468 ------------- 13,889,698 ------------- HEALTH CARE EQUIPMENT & SUPPLIES (2.1%) Boston Scientific Corp. (a)............. 172,950 10,394,295 Hillenbrand Industries, Inc............. 87,200 4,721,880 Varian Medical Systems, Inc. (a)........ 120,840 6,748,914 ------------- 21,865,089 ------------- HEALTH CARE PROVIDERS & SERVICES (14.6%) AmerisourceBergen Corp.................. 156,900 9,133,149 Anthem, Inc. (a)........................ 149,550 10,947,060 Caremark Rx, Inc. (a)................... 1,314,450 33,032,128 Community Health Systems, Inc. (a)............................. 331,080 7,611,529 DaVita, Inc. (a)........................ 357,750 10,875,600 First Health Group Corp. (a)............ 264,000 6,922,080 Health Management Associates, Inc...................... 344,900 7,684,372 Lincare Holdings, Inc. (a).............. 228,600 7,916,418 UnitedHealth Group, Inc................. 349,200 17,260,956 WebMD Corp. (a)......................... 928,000 9,558,400 WellChoice, Inc. (a).................... 175,900 5,104,618 WellPoint Health Networks, Inc. (a)............................. 328,000 25,584,000 ------------- 151,630,310 ------------- PHARMACEUTICALS (5.1%) ANDRX Corp. (a)......................... 570,800 10,274,400 Barr Laboratories, Inc. (a)............. 332,575 22,505,350 Biovail Corp. (a)....................... 351,800 14,610,254 Teva Pharmaceutical Industries Ltd., ADR............................ 93,800 5,507,186 ------------- 52,897,190 ------------- INDUSTRIALS (13.7%) AEROSPACE & DEFENSE (0.9%) Raytheon Co............................. 306,150 9,815,169 ------------- COMMERCIAL SERVICES & SUPPLIES (8.7%) BISYS Group, Inc. (a)................... 524,550 9,625,492 ChoicePoint, Inc. (a)................... 302,790 11,884,508 Cintas Corp............................. 123,650 4,937,344 Corporate Executive Board Co. (a)....... 197,700 8,728,455 DST Systems, Inc. (a)................... 128,300 5,080,680 Education Management Corp. (a).......... 167,300 10,232,068 Monster Worldwide, Inc. (a)............. 402,800 11,004,496 SHARES VALUE - ----------------------------------------------------------------------------- Republic Services, Inc.................. 309,910 $ 7,629,984 Robert Half International, Inc. (a)..... 425,100 9,454,224 Weight Watchers International, Inc. (a)............................. 263,175 11,408,636 ------------- 89,985,887 ------------- ELECTRICAL EQUIPMENT (0.9%) American Power Conversion Corp.......... 553,700 9,922,304 TRADING COMPANIES & DISTRIBUTORS (3.2%) CDW Corp................................ 204,900 10,574,889 Fastenal Co. ........................... 258,000 10,430,940 W.W. Grainger, Inc...................... 238,710 11,894,919 ------------- 32,900,748 ------------- INFORMATION TECHNOLOGY (29.1%) COMMUNICATIONS EQUIPMENT (3.1%) 3Com Corp. (a).......................... 1,390,100 7,923,570 Comverse Technology, Inc. (a)........... 235,100 3,876,799 Scientific-Atlanta, Inc................. 197,200 6,704,800 UTStarcom, Inc. (a)..................... 328,400 14,108,064 ------------- 32,613,233 ------------- COMPUTERS & PERIPHERALS (0.5%) Lexmark International, Inc. (a)......... 75,940 5,091,018 ------------- ELECTRONIC EQUIPMENT & INSTRUMENTS (4.2%) Amphenol Corp., Class A (a)............. 289,500 15,786,435 AU Optronics Corp., ADR................. 500,455 6,776,161 Jabil Circuit, Inc. (a)................. 371,450 10,456,318 Sanmina-SCI Corp. (a)................... 452,400 4,062,552 Symbol Technologies, Inc. .............. 461,800 6,252,772 ------------- 43,334,238 ------------- INTERNET SOFTWARE & SERVICES (0.5%) Check Point Software Technologies Ltd. (a)................ 334,500 5,843,715 ------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS (10.1%) Agere Systems, Inc. (a)................. 3,712,200 11,210,844 Altera Corp. (a)........................ 260,000 5,834,400 Amkor Technology, Inc. (a).............. 477,800 8,399,724 Fairchild Semiconductor International, Inc. (a).............. 449,500 7,956,150 Marvell Technology Group Ltd. (a)....... 245,300 10,344,301 MEMC Electronic Materials, Inc. (a)..... 615,100 7,983,998 Microchip Technology, Inc............... 632,750 17,723,328 National Semiconductor Corp. (a)........ 181,500 5,288,910 Novellus Systems, Inc. (a).............. 328,200 13,114,872 Taiwan Semiconductor Manufacturing Co., Ltd., ADR (a)..... 1,024,056 12,063,380 Teradyne, Inc. (a)...................... 270,430 4,821,767 ------------- 104,741,674 ------------- See Accompanying Notes to Financial Statements 87 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA MID CAP GROWTH FUND (CONT.) AUGUST 31, 2003 SHARES VALUE - ----------------------------------------------------------------------------- SOFTWARE (10.7%) Amdocs Ltd. (a)......................... 721,300 $ 16,142,694 BMC Software, Inc. (a).................. 437,600 6,423,968 Electronic Arts, Inc. (a)............... 253,350 22,738,162 Fair Isaac Corp......................... 266,100 15,593,460 Intuit, Inc. (a)........................ 171,625 7,778,045 Mercury Interactive Corp. (a)........... 284,250 12,475,732 Siebel Systems, Inc. (a)................ 507,605 5,116,658 Symantec Corp. (a)...................... 142,950 8,209,618 VERITAS Software Corp. (a).............. 476,150 16,417,652 -------------- 110,895,989 -------------- MATERIALS (0.3%) CHEMICALS (0.3%) Methanex Corp. ......................... 299,000 3,010,930 -------------- Total Common Stocks (Cost of $813,820,814)............... 1,020,408,243 -------------- CONVERTIBLE PREFERRED STOCK (0.0%) INFORMATION TECHNOLOGY (0.0%) INTERNET SOFTWARE & SERVICES (0.0%) Network Specialists, Inc., Series A (a)(b)(c) (Cost of $3,000,000)................. 394,218 3,942 -------------- SHORT-TERM OBLIGATION (2.7%) PAR Repurchase agreement with State Street Bank & Trust Co., dated 08/29/03, due 09/01/03 at 0.860%, collateralized by a U.S. Treasury Bond maturing 11/15/03, market value $28,708,875 (repurchase proceeds $28,147,689) (Cost of $28,145,000)................ $28,145,000 28,145,000 -------------- TOTAL INVESTMENTS (100.9%) (Cost of $844,965,814) (d)........... 1,048,557,185 -------------- OTHER ASSETS & LIABILITIES, NET (-0.9%)...... (9,383,332) -------------- NET ASSETS (100.0%).......................... $1,039,173,853 ============== NOTES TO SCHEDULE OF INVESTMENTS: (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 August 31, 2003, the value of this security amounted to $3,942, which represents less than 0.1% of net assets. (c) Represents fair value as determined in good faith under the direction of the Board of Directors. (d) Cost for federal income tax purposes is $848,817,817. ACRONYM NAME ------- ---- ADR American Depositary Receipt COLUMBIA SMALL CAP GROWTH FUND AUGUST 31, 2003 SHARES VALUE - ----------------------------------------------------------------------------- COMMON STOCKS (93.9%) CONSUMER DISCRETIONARY (18.5%) AUTO COMPONENTS (2.4%) Autoliv, Inc............................ 197,200 $ 5,957,412 Gentex Corp. (a)........................ 171,550 6,434,841 Wabtec Corp............................. 171,400 2,682,410 ------------- 15,074,663 ------------- HOTELS, RESTAURANTS & LEISURE (4.3%) Ameristar Casinos, Inc. (a)............. 182,500 4,283,275 Fairmont Hotels & Resorts, Inc.......... 65,800 1,746,990 Leapfrog Enterprises, Inc. (a).......... 145,200 5,445,000 Outback Steakhouse, Inc................. 102,572 3,964,408 P.F. Chang's China Bistro, Inc. (a)..... 92,900 4,319,850 Panera Bread Co., Class A (a)........... 106,800 4,715,220 Ruby Tuesday, Inc....................... 122,000 2,777,940 ------------- 27,252,683 ------------- HOUSEHOLD DURABLES (1.6%) Harman International Industries, Inc.................................. 102,100 10,174,265 ------------- MEDIA (4.1%) Entercom Communications Corp. (a)............................ 176,400 8,878,212 Entravision Communications Corp., Class A (a)................... 356,000 3,524,400 Lamar Advertising Co. (a)............... 128,812 4,303,609 Radio One, Inc., Class D (a)............ 316,802 5,211,393 XM Satellite Radio Holdings, Inc., Class A (a).......................... 318,300 4,360,710 ------------- 26,278,324 ------------- SPECIALTY RETAIL (5.9%) Advance Auto Parts, Inc. (a)............ 64,600 4,822,390 Electronics Boutique Holdings Corp. (a)............................ 97,700 3,246,571 GameStop Corp. (a)...................... 261,200 4,343,756 Hollywood Entertainment Corp. (a)............................ 201,100 3,493,107 Linens `n Things, Inc. (a).............. 117,700 3,401,530 Michaels Stores, Inc. (a)............... 126,975 5,771,014 O'Reilly Automotive, Inc. (a)........... 94,792 3,629,586 PETsMART, Inc........................... 278,000 6,649,760 Pier 1 Imports, Inc..................... 112,800 2,320,296 ------------- 37,678,010 ------------- TEXTILES, APPAREL & LUXURY GOODS (0.2%) Columbia Sportswear Co. (a)............. 30,350 1,547,850 ------------- See Accompanying Notes to Financial Statements 88 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- SHARES VALUE - ----------------------------------------------------------------------------- ENERGY (8.9%) ENERGY EQUIPMENT & SERVICES (5.8%) Cal Dive International, Inc. (a)........ 144,700 $ 3,060,405 Grey Wolf, Inc. (a)..................... 509,800 1,932,142 Key Energy Services, Inc. (a)........... 465,300 4,820,508 Maverick Tube Corp. (a)................. 134,600 2,286,854 National-Oilwell, Inc. (a).............. 243,300 4,763,814 Oceaneering International, Inc. (a)..... 101,900 2,504,702 Patterson-UTI Energy, Inc. (a).......... 110,500 3,297,320 Precision Drilling Corp. (a)............ 162,200 6,473,402 TETRA Technologies, Inc. (a)............ 109,800 2,470,500 Varco International, Inc. (a)........... 303,100 5,228,475 ------------- 36,838,122 ------------- OIL & GAS (3.1%) Chesapeake Energy Corp.................. 393,700 4,267,708 Cross Timbers Royalty Trust............. 2,480 55,414 Patina Oil & Gas Corp................... 106,506 3,946,047 Premcor, Inc. (a)....................... 200,350 4,908,575 XTO Energy, Inc......................... 335,200 7,035,848 ------------- 20,213,592 ------------- FINANCIALS (2.4%) DIVERSIFIED FINANCIALS (0.3%) CapitalSource, Inc. (a)................. 32,000 563,200 iPayment, Inc. (a)...................... 42,200 1,066,394 ------------- 1,629,594 ------------- INSURANCE (2.1%) IPC Holdings Ltd. (a)................... 97,010 3,401,171 ProAssurance Corp. (a).................. 154,900 3,987,126 Scottish Annuity & Life Holdings Ltd.................................. 259,000 5,951,820 ------------- 13,340,117 ------------- HEALTH CARE (19.2%) BIOTECHNOLOGY (3.1%) Connetics Corp. (a)..................... 389,300 7,295,482 ICOS Corp. (a).......................... 187,250 7,291,515 Martek Biosciences Corp. (a)............ 86,100 4,441,899 Vicuron Pharmaceuticals, Inc. (a)....... 66,500 993,510 ------------- 20,022,406 ------------- HEALTH CARE EQUIPMENT & SUPPLIES (2.6%) ArthroCare Corp. (a).................... 251,200 4,230,208 Kyphon, Inc. (a)........................ 203,400 4,810,410 Orthofix International NV (a)........... 13,792 466,997 Thoratec Corp. (a)...................... 104,800 1,573,048 Wilson Greatbatch Technologies, Inc. (a)............................. 141,110 5,583,723 ------------- 16,664,386 ------------- SHARES VALUE - ----------------------------------------------------------------------------- HEALTH CARE PROVIDERS & SERVICES (12.1%) Caremark Rx, Inc. (a)................... 336,222 $ 8,449,259 Cerner Corp. (a)........................ 185,700 6,557,067 Cobalt Corp. (a)........................ 145,400 2,877,466 Community Health Systems, Inc. (a)...... 140,400 3,227,796 Coventry Health Care, Inc. (a).......... 142,100 6,670,174 DaVita, Inc. (a)........................ 324,031 9,850,542 First Health Group Corp. (a)............ 363,356 9,527,194 Henry Schein, Inc. (a).................. 155,251 8,976,613 ICON PLC, ADR (a)....................... 168,550 6,194,212 IMPAC Medical Systems, Inc. (a)......... 136,200 2,635,470 Mid Atlantic Medical Services, Inc. (a)............................. 182,400 8,948,544 PacifiCare Health Systems, Inc. (a)............................. 61,200 3,047,760 ------------- 76,962,097 ------------- PHARMACEUTICALS (1.4%) ANDRX Corp. (a)......................... 258,200 4,647,600 AtheroGenics, Inc. (a).................. 291,787 3,971,221 ------------- 8,618,821 ------------- INDUSTRIALS (10.1%) AIRLINES (0.2%) SkyWest, Inc............................ 91,000 1,590,680 ------------- COMMERCIAL SERVICES & SUPPLIES (7.5%) BISYS Group, Inc. (a)................... 278,000 5,101,300 Corinthian Colleges, Inc. (a)........... 118,000 6,790,900 Corporate Executive Board Co. (a)....... 147,960 6,532,434 Education Management Corp. (a).......... 211,671 12,945,798 Global Payments, Inc.................... 118,136 4,459,634 Resources Connection, Inc. (a).......... 223,900 6,190,835 Tetra Tech, Inc. (a).................... 37,100 709,723 Waste Connections, Inc. (a)............. 151,800 5,347,914 ------------- 48,078,538 ------------- CONSTRUCTION & ENGINEERING (1.1%) Chicago Bridge & Iron Co., NY Registered Shares................. 152,300 4,069,456 URS Corp. (a)........................... 122,390 2,794,164 ------------- 6,863,620 ------------- ELECTRICAL EQUIPMENT (0.4%) Power-One, Inc. (a)..................... 192,030 2,267,874 ------------- MACHINERY (0.9%) Albany International Corp., Class A.............................. 179,000 5,470,240 ------------- See Accompanying Notes to Financial Statements 89 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA SMALL CAP GROWTH FUND (CONT.) AUGUST 31, 2003 SHARES VALUE - ----------------------------------------------------------------------------- INFORMATION TECHNOLOGY (33.5%) COMMUNICATIONS EQUIPMENT (5.4%) Advanced Fibre Communications, Inc. (a)............................. 218,700 $ 5,089,149 Aspect Communications Corp. (a)......... 244,400 2,011,412 AudioCodes Ltd. (a)..................... 154,300 932,126 Corvis Corp. (a)........................ 1,004,500 1,376,165 F5 Networks, Inc. (a)................... 209,500 4,108,295 Foundry Networks, Inc. (a).............. 254,410 4,948,274 NetScreen Technologies, Inc. (a)........ 359,800 8,610,014 Polycom, Inc. (a)....................... 274,500 4,710,420 REMEC, Inc. (a)......................... 123,400 1,118,004 Sonus Networks, Inc. (a)................ 200,000 1,420,000 ------------- 34,323,859 ------------- COMPUTERS & PERIPHERALS (1.7%) Advanced Digital Information Corp. (a)............................ 293,500 3,962,250 Electronics for Imaging, Inc. (a)....... 334,820 7,171,844 ------------- 11,134,094 ------------- ELECTRONIC EQUIPMENT & INSTRUMENTS (4.6%) Amphenol Corp., Class A (a)............. 330,855 18,041,523 Artesyn Technologies, Inc. (a).......... 318,700 2,565,535 Benchmark Electronics, Inc. (a)......... 191,600 8,503,208 ------------- 29,110,266 ------------- INFORMATION TECHNOLOGY CONSULTING & SERVICES (2.1%) CACI International, Inc., Class A (a).......................... 119,800 5,344,278 Cognizant Technology Solutions Corp. (a)............................ 238,100 8,293,023 ------------- 13,637,301 ------------- INTERNET SOFTWARE & SERVICES (1.3%) Altiris, Inc. (a)....................... 45,200 1,010,672 CNET Networks, Inc. (a)................. 189,800 1,598,116 ebookers PLC, ADR (a)................... 111,400 2,138,880 NetGear, Inc. (a)....................... 34,300 675,367 webMethods, Inc. (a).................... 345,700 3,118,214 ------------- 8,541,249 ------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS (9.7%) Axcelis Technologies, Inc. (a).......... 383,700 3,338,190 Cabot Microelectronics Corp. (a)........ 74,000 4,824,060 ChipPAC, Inc., Class A (a).............. 520,500 3,273,945 Conexant Systems, Inc. (a).............. 607,600 3,329,648 Credence Systems Corp. (a).............. 735,400 8,449,746 DuPont Photomasks, Inc. (a)............. 77,000 1,971,970 FEI Co. (a)............................. 66,200 1,819,176 SHARES VALUE - ----------------------------------------------------------------------------- Integrated Device Technology, Inc. (a)............................. 347,400 $ 4,846,230 Lattice Semiconductor Corp. (a)......... 266,800 2,347,840 Microsemi Corp. (a)..................... 417,500 8,253,975 Photronics, Inc. (a).................... 264,186 6,417,078 PMC-Sierra, Inc. (a).................... 146,700 2,091,942 Power Integrations, Inc. (a)............ 81,000 2,606,580 Ultratech, Inc. (a)..................... 286,700 8,408,911 ------------- 61,979,291 ------------- SOFTWARE (8.7%) Activision, Inc. (a).................... 352,500 4,550,775 Amdocs Ltd. (a)......................... 167,700 3,753,126 Autodesk, Inc........................... 223,400 3,998,860 Citrix Systems, Inc. (a)................ 187,600 3,862,684 Documentum, Inc. (a).................... 144,531 2,965,776 Fair Isaac Corp......................... 165,000 9,669,000 JDA Software Group, Inc. (a)............ 215,300 3,595,510 Macromedia, Inc. (a).................... 420,100 10,015,184 Mercury Interactive Corp. (a)........... 122,800 5,389,692 MicroStrategy, Inc., Class A (a)........ 72,000 2,913,120 National Instruments Corp. (a).......... 71,860 2,846,375 Ulticom, Inc. (a)....................... 103,300 1,074,320 Verity, Inc. (a)........................ 45,500 542,360 ------------- 55,176,782 ------------- MATERIALS (0.6%) CHEMICALS (0.6%) OM Group, Inc........................... 271,500 3,659,820 ------------- TELECOMMUNICATION SERVICES (0.7%) DIVERSIFIED TELECOMMUNICATION SERVICES (0.1%) Covad Communications Group, Inc. (a)............................. 225,400 856,520 ------------- WIRELESS TELECOMMUNICATION SERVICES (0.6%) Dobson Communications Corp., Class A (a).......................... 421,000 3,873,200 ------------- Total Common Stocks (Cost of $452,564,627)............... 598,858,264 ------------- INVESTMENT MANAGEMENT COMPANY (0.5%) Japan Smaller Capitalization Fund, Inc. (Cost of $2,902,739)................. 356,400 2,958,120 ------------- See Accompanying Notes to Financial Statements 90 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- PAR VALUE - ----------------------------------------------------------------------------- SHORT-TERM OBLIGATION (6.2%) Repurchase agreement with State Street Bank & Trust Co., dated 08/29/03, due 09/02/03 at 0.860%, collateralized by a U.S. Treasury Note maturing 08/15/06, market value of $40,518,450 (repurchase proceeds $39,726,796) (Cost of $39,723,000)................ $39,723,000 $ 39,723,000 ------------- TOTAL INVESTMENTS (100.6%) (Cost of $495,190,366) (b)........... 641,539,384 ------------- OTHER ASSETS & LIABILITIES, NET (-0.6%)...... (3,923,811) ------------- NET ASSETS (100.0%).......................... $ 637,615,573 ============= NOTES TO SCHEDULE OF INVESTMENTS: (a) Non-income producing. (b) Cost for federal income tax purposes is $498,727,495. ACRONYM NAME ------- ---- ADR American Depositary Receipt COLUMBIA REAL ESTATE EQUITY FUND AUGUST 31, 2003 SHARES VALUE - ----------------------------------------------------------------------------- COMMON STOCKS (94.2%) CONSUMER DISCRETIONARY (5.4%) HOTELS, RESTAURANTS & LEISURE (5.4%) Hilton Hotels Corp...................... 1,211,700 $ 18,514,776 Marriott International, Inc., Class A.............................. 307,700 12,563,391 Starwood Hotels & Resorts Worldwide, Inc....................... 531,800 17,990,794 ------------- 49,068,961 ------------- FINANCIALS (77.8%) REAL ESTATE (77.8%) Alexandria Real Estate Equities, Inc.................................. 663,100 30,999,925 American Financial Realty Trust......... 563,600 8,115,840 Apartment Investment & Management Co., Class A.............. 480,600 18,527,130 Archstone-Smith Trust................... 644,771 16,860,762 AvalonBay Communities, Inc.............. 476,400 22,104,960 Boston Properties, Inc.................. 370,500 15,912,975 Brookfield Properties Corp.............. 398,800 9,300,016 CarrAmerica Realty Corp................. 275,500 7,755,325 Catellus Development Corp. (a).......... 386,500 9,063,425 Centerpoint Properties Trust............ 257,300 16,312,820 SHARES VALUE - ----------------------------------------------------------------------------- Chelsea Property Group, Inc............. 372,400 $ 17,111,780 Cousins Properties, Inc. ............... 1,615,050 46,836,450 Duke Realty Corp........................ 785,200 21,726,484 Equity Office Properties Trust.......... 934,537 25,998,819 Equity Residential...................... 608,506 17,695,354 First Industrial Realty Trust, Inc. .... 268,300 8,169,735 General Growth Properties, Inc.......... 614,960 42,647,476 iStar Financial, Inc. .................. 1,134,350 41,585,271 Kimco Realty Corp....................... 746,600 31,118,288 Liberty Property Trust.................. 390,300 13,594,149 Manufactured Home Communities, Inc. ................................ 179,900 6,602,330 Newcastle Investment Corp............... 623,700 13,553,001 Pan Pacific Retail Properties, Inc...... 287,800 12,116,380 Parkway Properties, Inc................. 93,100 4,175,535 Prentiss Properties Trust............... 204,000 6,130,200 ProLogis Trust.......................... 1,372,406 38,688,125 Public Storage, Inc..................... 617,032 22,762,310 Reckson Associates Realty Corp.......... 234,000 5,302,440 Regency Centers Corp.................... 832,500 29,370,600 Rouse Co................................ 778,400 31,034,808 Simon Property Group, Inc. ............. 1,033,256 44,130,364 SL Green Realty Corp.................... 240,200 8,447,834 St. Joe Co.............................. 528,900 17,987,889 Taubman Centers, Inc.................... 412,700 8,163,206 United Dominion Realty Trust, Inc. ..... 508,000 9,306,560 Vornado Realty Trust.................... 531,100 25,041,365 ------------- 704,249,931 ------------- MATERIALS (11.0%) CONTAINERS & PACKAGING (2.3%) Smurfit-Stone Container Corp. (a)....... 863,500 13,626,030 Temple-Inland, Inc...................... 139,200 6,929,376 ------------- 20,555,406 ------------- PAPER & FOREST PRODUCTS (8.7%) Bowater, Inc............................ 836,100 36,211,491 International Paper Co.................. 705,500 28,608,025 MeadWestvaco Corp....................... 537,700 13,630,695 ------------- 78,450,211 ------------- Total Common Stocks (Cost of $660,975,299)............... 852,324,509 ------------- See Accompanying Notes to Financial Statements 91 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA REAL ESTATE EQUITY FUND (CONT.) AUGUST 31, 2003 PAR VALUE - ----------------------------------------------------------------------------- SHORT-TERM OBLIGATION (5.0%) Repurchase agreement with State Street Bank & Trust Co., dated 08/29/03, due 09/02/03 at 0.860%, collateralized by U.S. Treasury Notes with various maturities to 07/15/06, market value of $46,542,323 (repurchase proceeds $45,631,360) (Cost of $45,627,000)................ $45,627,000 $ 45,627,000 ------------- TOTAL INVESTMENTS (99.2%) (Cost of $706,602,299) (b)........... 897,951,509 ------------- OTHER ASSETS & LIABILITIES, NET (0.8%)....... 7,402,011 ------------- NET ASSETS (100.0%).......................... $ 905,353,520 ============= NOTES TO SCHEDULE OF INVESTMENTS: (a) Non-income producing. (b) Cost for federal income tax purposes is $707,850,016. COLUMBIA TECHNOLOGY FUND AUGUST 31, 2003 SHARES VALUE - ----------------------------------------------------------------------------- COMMON STOCKS (86.2%) CONSUMER DISCRETIONARY (7.4%) HOUSEHOLD DURABLES (1.7%) Garmin Ltd.............................. 5,000 $ 199,850 Matsushita Electric Industrial Co., Ltd., ADR............................ 12,300 157,563 ------------- 357,413 ------------- INTERNET & CATALOG RETAIL (2.6%) Drugstore.com, Inc. (a)................. 18,400 117,392 eBay, Inc. (a).......................... 4,200 232,596 InterActiveCorp (a)..................... 5,600 207,256 ------------- 557,244 ------------- LEISURE EQUIPMENT & PRODUCTS (0.5%) Marvel Enterprises, Inc. (a)............ 4,800 105,120 ------------- MEDIA (2.6%) 4 Kids Entertainment, Inc. (a).......... 6,600 144,606 Pixar, Inc. (a)......................... 250 18,208 TiVo, Inc. (a).......................... 13,000 141,310 XM Satellite Radio Holdings, Inc., Class A (a).......................... 18,400 252,080 ------------- 556,204 ------------- SHARES VALUE - ----------------------------------------------------------------------------- HEALTH CARE (3.6%) BIOTECHNOLOGY (2.2%) Exact Sciences Corp. (a)................ 7,000 $ 117,880 ICOS Corp. (a).......................... 2,000 77,880 Neurocrine Biosciences, Inc. (a)........ 1,500 80,265 Onyx Pharmaceuticals, Inc. (a).......... 8,000 142,800 Vicuron Pharmaceuticals, Inc. (a)....... 4,000 59,760 ------------- 478,585 ------------- HEALTH CARE EQUIPMENT & SUPPLIES (0.6%) Illumina, Inc. (a)...................... 2,000 7,363 Varian Medical Systems, Inc. (a)........ 2,000 111,700 ------------- 119,063 ------------- PHARMACEUTICALS (0.8%) Biovail Corp. (a)....................... 4,000 167,780 ------------- INDUSTRIALS (0.9%) COMMERCIAL SERVICES & SUPPLIES (0.9%) Global Payments, Inc.................... 5,000 188,750 ------------- INFORMATION TECHNOLOGY (57.9%) COMMUNICATIONS EQUIPMENT (10.3%) ADTRAN, Inc............................. 3,500 191,800 Advanced Fibre Communications, Inc. (a)............................. 10,300 239,681 Alvarion Ltd. (a)....................... 40,000 224,800 Carrier Access Corp. (a)................ 37,500 176,250 Ciena Corp. (a)......................... 25,000 162,500 Comverse Technology, Inc. (a)........... 17,500 288,575 Foundry Networks, Inc. (a).............. 10,000 194,500 Juniper Networks, Inc. (a).............. 10,000 172,200 Network Engines, Inc. (a)............... 24,000 146,400 Network Equipment Technologies, Inc. (a)............................. 10,500 97,335 Oplink Communications, Inc. (a)......... 32,000 49,600 PC-Tel, Inc. (a)........................ 3,000 34,080 Sonus Networks, Inc. (a)................ 30,000 213,000 ------------- 2,190,721 ------------- COMPUTERS & PERIPHERALS (3.1%) Dell, Inc. (a).......................... 2,400 78,312 Innovex, Inc. (a)....................... 10,000 136,470 Overland Storage, Inc. (a).............. 5,200 84,240 Presstek, Inc. (a)...................... 18,500 161,801 Sandisk Corp. (a)....................... 1,800 108,828 Vixel Corp. (a)......................... 12,000 99,600 ------------- 669,251 ------------- ELECTRONIC EQUIPMENT & INSTRUMENTS (0.8%) Spatialight, Inc. (a)................... 14,000 58,939 Symbol Technologies, Inc. .............. 7,500 101,550 ------------- 160,489 ------------- See Accompanying Notes to Financial Statements 92 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- SHARES VALUE - ----------------------------------------------------------------------------- INFORMATION TECHNOLOGY CONSULTING & SERVICES (2.1%) Affiliated Computer Services, Inc., Class A (a).......................... 1,500 $ 74,415 Computer Sciences Corp. (a)............. 2,000 85,140 Infosys Technologies, Ltd., ADR......... 2,500 141,625 Sapient Corp. (a)....................... 50,000 157,500 ------------- 458,680 ------------- INTERNET SOFTWARE & SERVICES (9.5%) Art Technology Group, Inc. (a).......... 90,000 204,120 ebookers PLC, ADR (a)................... 6,000 115,200 Lastminute.com PLC, ADR (a)............. 2,500 53,875 NetEase.com, Inc., ADR (a).............. 725 36,910 NetGear, Inc. (a)....................... 2,000 39,380 Sify Ltd., ADR (a)...................... 8,800 49,720 SINA Corp., Registered Shares (a)....... 1,900 59,052 Sohu.com, Inc. (a)...................... 7,000 210,140 Switchboard, Inc. (a)................... 29,000 326,540 United Online, Inc. (a)................. 13,360 509,150 Yahoo!, Inc. (a)........................ 12,900 430,860 ------------- 2,034,947 ------------- OFFICE ELECTRONICS (1.7%) Canon, Inc., ADR........................ 4,800 232,608 Zebra Technologies Corp., Class A (a).......................... 2,250 120,645 ------------- 353,253 ------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS (18.4%) Advanced Micro Devices, Inc. (a)........ 19,000 214,510 ASML Holding NV, NY Registered Shares (a)........................... 8,800 139,920 Atmel Corp. (a)......................... 14,000 64,260 Cohu, Inc. ............................. 2,500 55,303 Credence Systems Corp. (a).............. 5,000 56,108 Cymer, Inc. (a)......................... 4,500 205,965 Infineon Technologies AG, ADR (a)....... 5,000 73,500 Intel Corp.............................. 12,000 343,440 Intersil Corp., Class A (a)............. 1,525 44,423 Marvell Technology Group Ltd. (a)............................. 4,600 193,982 MIPS Technologies, Inc., Class A (a).......................... 15,000 62,850 MIPS Technologies, Inc., Class B (a).......................... 84,000 336,000 PDF Solutions, Inc. (a)................. 8,000 96,720 PMC-Sierra, Inc. (a).................... 25,000 356,500 Samsung Electronics Co., Ltd., GDR (b).............................. 1,100 204,050 Silicon Laboratories, Inc. (a).......... 2,200 97,702 Silicon Storage Technology, Inc. (a)............................. 36,000 303,480 SHARES VALUE - ----------------------------------------------------------------------------- Siliconware Precision Industries Co., ADR (a)......................... 50,010 $ 215,043 Ultratech Stepper, Inc. (a).................. 2,000 58,660 United Microelectronics Corp., ADR (a).............................. 42,000 208,740 ZiLOG, Inc. (a)......................... 172,000 581,360 ------------- 3,912,516 ------------- SOFTWARE (12.0%) Activision, Inc. (a).................... 9,000 116,190 Agile Software Corp. (a)................ 15,000 149,850 Amdocs, Ltd. (a)........................ 9,000 201,420 Autodesk, Inc........................... 5,000 89,500 BEA Systems, Inc. (a)................... 8,100 109,755 Citrix Systems, Inc. (a)................ 8,000 164,720 Computer Associates International, Inc................... 10,000 256,300 Concur Technologies, Inc. (a)........... 25,000 277,500 Informatica Corp. (a)................... 20,000 177,800 MicroStrategy, Inc., Class A (a)........ 1,750 70,805 Network Associates, Inc. (a)............ 10,000 139,200 Novell, Inc. (a)........................ 18,000 90,540 Oracle Corp. (a)........................ 18,000 230,040 Peregrine Sysems, Inc. (a).............. 3,000 57,600 Red Hat, Inc. (a)....................... 14,000 101,920 SAP AG, ADR............................. 5,500 164,670 Sybase, Inc. (a)........................ 5,500 93,005 Verity, Inc. (a)........................ 6,400 76,288. ------------- 2,567,103 ------------- TELECOMMUNICATION SERVICES (16.4%) DIVERSIFIED TELECOMMUNICATION SERVICES (8.5%) Compania Anonima Nacional Telefonos de Venezuela, ADR (a).............................. 8,000 105,840 Covad Communications Group, Inc. (a)............................. 290,600 1,104,280 Telefonaktiebolaget LM Ericsson, ADR (a).............................. 20,000 309,600 Telefonos de Mexico SA de CV, ADR.................................. 6,000 181,860 Verizon Communications, Inc............. 3,000 105,960 ------------- 1,807,540 ------------- WIRELESS TELECOMMUNICATION SERVICES (7.9%) American Tower Corp., Class A (a).......................... 20,000 227,600 AT&T Wireless Services, Inc. (a)........ 11,500 99,130 Crown Castle International Corp. (a)............................ 24,000 258,000 See Accompanying Notes to Financial Statements 93 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA TECHNOLOGY FUND (CONT.) AUGUST 31, 2003 SHARES VALUE - ----------------------------------------------------------------------------- Millicom International Cellular SA (a)............................... 13,000 $ 519,350 Mobile Telesystems, ADR (a)............. 4,000 281,920 Vimpel-Communications, ADR (a).......... 5,500 296,505 ------------- 1,682,505 ------------- Total Common Stocks (Cost of $15,160,558)................ 18,367,164 ------------- SHORT-TERM OBLIGATION (19.7%) PAR Repurchase agreement with State Street Bank & Trust Co., dated 08/29/03, due 09/02/03 at 0.860%, collateralized by a U.S. Treasury Note maturing 11/15/03, market value of $4,287,452 (repurchase proceeds $4,200,401) (Cost of $4,200,000)................. $ 4,200,000 4,200,000 ------------- TOTAL INVESTMENTS (105.9%) (Cost of $19,360,558) (c)............ 22,567,164 ------------- OTHER ASSETS & LIABILITIES, NET (-5.9%)...... (1,267,677) ------------- NET ASSETS (100.0%).......................... $ 21,299,487 ============= NOTES TO SCHEDULE OF INVESTMENTS: (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 August 31, 2003, the value of this security amounted to $204,050, which represents 1.0% of net assets. (c) Cost for federal income tax purposes is $19,469,481. ACRONYM NAME ------- ---- ADR American Depositary Receipt GDR Global Depositary Receipt COLUMBIA STRATEGIC INVESTOR FUND AUGUST 31, 2003 SHARES VALUE - ----------------------------------------------------------------------------- COMMON STOCKS (80.4%) CONSUMER DISCRETIONARY (12.6%) AUTO COMPONENTS (1.6%) Dana Corp............................... 50,000 $ 771,000 Modine Manufacturing Co................. 75,000 1,852,500 Nokian Renkaat Oyj (Finland)............ 35,800 1,983,580 ------------- 4,607,080 ------------- SHARES VALUE - ----------------------------------------------------------------------------- HOTELS, RESTAURANTS & LEISURE (1.4%) Carnival Corp........................... 30,000 $ 1,037,700 Fairmont Hotels & Resorts, Inc.......... 50,000 1,327,500 McDonald's Corp......................... 75,000 1,681,500 ------------- 4,046,700 ------------- HOUSEHOLD DURABLES (2.2%) Cavco Industries, Inc. (a).............. 40,000 762,400 Ekornes ASA (Norway).................... 100,000 1,506,004 Makita Corp., ADR....................... 50,000 440,000 Matsushita Electric Industrial Co., Ltd., ADR....................... 100,000 1,281,000 Newell Rubbermaid, Inc.................. 40,100 952,375 Stanley Works........................... 50,000 1,513,500 ------------- 6,455,279 ------------- LEISURE EQUIPMENT & PRODUCTS (0.3%) Hasbro, Inc............................. 50,000 925,000 ------------- MEDIA (2.8%) AOL Time Warner, Inc. (a)............... 115,000 1,881,400 Belo Corp., Class A..................... 40,000 932,800 Entravision Communications Corp., Class A (a)................... 100,000 990,000 Hughes Electronics Corp................. 100,000 1,494,000 Liberty Media Corp., Class A (a)........ 50,000 605,000 Martha Stewart Living Omnimedia, Inc., Class A (a)......... 75,000 657,000 Media General, Inc., Class A............ 20,000 1,212,200 Metro-Goldwyn-Mayer, Inc. (a)........... 27,500 398,200 ------------- 8,170,600 ------------- MULTI-LINE RETAIL (1.8%) Dillard's, Inc., Class A................ 100,000 1,513,000 Dollar General Corp..................... 67,500 1,547,775 Stockmann Oyj, Class B (Finland)........ 70,000 1,221,268 Target Corp. ........................... 20,000 812,000 ------------- 5,094,043 ------------- SPECIALTY RETAIL (2.5%) CarMax, Inc. (a)........................ 50,000 1,927,500 Circuit City Stores, Inc................ 75,000 782,250 Friedman's, Inc., Class A............... 150,000 1,995,000 Home Depot, Inc......................... 20,000 643,200 Linens `n Things, Inc. (a).............. 27,500 794,750 Talbots, Inc............................ 32,500 1,191,775 ------------- 7,334,475 ------------- CONSUMER STAPLES (4.3%) BEVERAGES (1.2%) Coca-Cola Co............................ 20,000 870,400 Coca-Cola Femsa SA de CV, ADR........... 55,000 1,190,750 Companhia de Bebidas das Americas, ADR.................... 67,500 1,497,825 ------------- 3,558,975 ------------- See Accompanying Notes to Financial Statements 94 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- SHARES VALUE - ----------------------------------------------------------------------------- FOOD & DRUG RETAILING (1.0%) Longs Drug Stores Corp.................. 47,500 $ 1,087,750 United Natural Foods, Inc. (a).......... 30,000 892,500 Walgreen Co............................. 30,000 977,100 ------------- 2,957,350 ------------- FOOD PRODUCTS (1.5%) Archer-Daniels-Midland Co............... 75,000 1,040,250 Del Monte Foods Co. (a)................. 50,000 449,000 Delta and Pine Land Co.................. 40,000 996,000 Tyson Foods, Inc., Class A.............. 100,000 1,120,000 Wimm-Bill-Dann Foods, ADR (a)........... 38,100 813,816 ------------- 4,419,066 ------------- HOUSEHOLD PRODUCTS (0.4%) Kimberly-Clark Corp..................... 25,000 1,277,750 ------------- TOBACCO (0.2%) Altria Group, Inc....................... 10,000 412,200 ------------- ENERGY (7.7%) ENERGY EQUIPMENT & SERVICES (4.2%) Core Laboratories NV (a)................ 75,000 1,001,250 FMC Technologies, Inc. (a).............. 75,000 1,775,250 GlobalSantaFe Corp...................... 47,500 1,178,000 Grant Prideco, Inc. (a)................. 75,000 870,000 Halliburton Co.......................... 67,500 1,632,150 Maverick Tube Corp. (a)................. 50,000 849,500 Schlumberger Ltd........................ 40,000 1,980,400 Transocean, Inc. (a).................... 75,000 1,584,000 Universal Compression Holdings, Inc. (a)............................. 50,000 1,151,000 Willbros Group, Inc. (a)................ 36,400 356,243 ------------- 12,377,793 ------------- OIL & GAS (3.5%) Anadarko Petroleum Corp................. 37,500 1,631,250 BP PLC, ADR............................. 42,500 1,773,100 Chesapeake Energy Corp.................. 50,000 542,000 China Petroleum and Chemical Corp., ADR........................... 30,000 909,600 Cimarex Energy Co. (a).................. 50,002 1,087,544 ConocoPhillips.......................... 35,385 1,975,898 EOG Resources, Inc...................... 10,000 424,000 Stelmar Shipping Ltd. (a)............... 50,000 855,500 Unocal Corp............................. 30,000 918,600 ------------- 10,117,492 ------------- SHARES VALUE - ----------------------------------------------------------------------------- FINANCIALS (11.9%) BANKS (5.6%) Allied Irish Banks PLC, ADR............. 30,000 $ 842,400 Bank One Corp........................... 47,500 1,874,825 Banner Corp............................. 20,000 422,000 Columbia Banking Systems, Inc........... 75,000 1,362,000 Fifth Third Bancorp..................... 37,500 2,197,500 HSBC Holdings PLC, ADR.................. 25,000 1,608,000 Grupo Financiero BBVA Bancomer, SA de CV, Class B (a) (Mexico)....... 750,000 608,324 MGIC Investment Corp.................... 37,500 2,113,875 Mitsubishi Tokyo Financial Group, Inc., ADR............................ 100,000 587,000 Radian Group, Inc....................... 40,000 1,903,600 U.S. Bancorp............................ 75,000 1,792,500 Wachovia Corp........................... 22,500 948,375 ------------- 16,260,399 ------------- DIVERSIFIED FINANCIALS (3.4%) Bank of New York Co., Inc............... 40,000 1,176,800 Citigroup, Inc.......................... 57,500 2,492,625 Financial Federal Corp.................. 30,000 964,200 GATX Corp............................... 75,000 1,588,500 J.P. Morgan Chase & Co.................. 40,000 1,368,800 Mellon Financial Corp................... 30,000 940,500 Nikko Cordial Corp. (Japan)............. 100,000 480,782 Nomura Holdings, Inc., ADR.............. 65,000 952,250 ------------- 9,964,457 ------------- INSURANCE (2.5%) American International Group, Inc....... 30,000 1,787,100 Aon Corp................................ 40,000 888,000 Chubb Corp.............................. 10,000 679,400 John Hancock Financial Services, Inc. ................................ 30,000 915,900 Lincoln National Corp................... 20,000 708,400 St. Paul Companies, Inc................. 20,000 695,200 Wesco Financial Corp.................... 5,000 1,580,050 ------------- 7,254,050 ------------- REAL ESTATE (0.4%) Crescent Real Estate Equities Co. ...... 20,000 290,200 Post Properties, Inc. .................. 30,000 846,000 ------------- 1,136,200 ------------- HEALTH CARE (7.8%) HEALTH CARE EQUIPMENT & SUPPLIES (1.1%) Baxter International, Inc............... 40,000 1,124,000 Haemonetics Corp. (a)................... 57,500 1,219,575 Millipore Corp. (a)..................... 20,000 908,000 ------------- 3,251,575 ------------- See Accompanying Notes to Financial Statements 95 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA STRATEGIC INVESTOR FUND (CONT.) AUGUST 31, 2003 SHARES VALUE - ----------------------------------------------------------------------------- HEALTH CARE PROVIDERS & SERVICES (1.1%) McKesson Corp........................... 40,000 $ 1,309,600 Quest Diagnostics, Inc. (a)............. 10,000 600,000 Service Corp. International (a)......... 50,000 200,000 Tenet Healthcare Corp. (a).............. 60,000 963,000 ------------- 3,072,600 ------------- PHARMACEUTICALS (5.6%) Abbott Laboratories..................... 50,000 2,015,000 Bristol-Myers Squibb Co................. 77,500 1,966,175 Elan Corp. PLC, ADR (a)................. 50,000 218,000 Gedeon Richter Ltd. (Hungary)........... 20,000 1,706,812 ICN Pharmaceuticals, Inc................ 62,500 1,093,750 Merck & Co., Inc........................ 12,500 629,000 Mylan Laboratories, Inc................. 50,000 1,820,000 Novartis AG, ADR........................ 40,000 1,478,800 Pfizer, Inc............................. 40,000 1,196,800 Schering AG, ADR........................ 15,000 609,515 Schering-Plough Corp.................... 75,000 1,139,250 Shire Pharmaceuticals Group PLC, ADR (a)......................... 50,000 1,162,500 Wyeth................................... 30,000 1,285,500 ------------- 16,321,102 ------------- INDUSTRIALS (11.8%) AEROSPACE & DEFENSE (0.7%) Northrop Grumman Corp. ................. 10,000 954,800 Raytheon Co. ........................... 30,000 961,800 ------------- 1,916,600 ------------- COMMERCIAL SERVICES & SUPPLIES (2.4%) Cendant Corp............................ 125,000 2,247,500 Copart, Inc. (a)........................ 40,000 401,600 G&K Services, Inc., Class A............. 30,000 991,500 Ionics, Inc. (a)........................ 47,500 1,045,000 R. R. Donnelley & Sons Co. ............. 40,000 1,005,600 Waste Management, Inc. ................. 55,000 1,463,550 ------------- 7,154,750 ------------- CONSTRUCTION & ENGINEERING (0.3%) URS Corp. (a)........................... 40,000 913,200 ------------- ELECTRICAL EQUIPMENT (1.6%) Cooper Industries Ltd., Class A......... 25,000 1,272,250 Emerson Electric Co. ................... 27,500 1,533,400 Rockwell Automation, Inc. .............. 35,000 952,700 Thomas & Betts Corp. (a)................ 50,000 854,000 ------------- 4,612,350 ------------- SHARES VALUE - ----------------------------------------------------------------------------- INDUSTRIAL CONGLOMERATES (2.2%) 3M Co................................... 32,500 $ 4,630,275 Textron, Inc............................ 42,500 1,912,500 ------------- 6,542,775 ------------- MACHINERY (3.8%) Caterpillar, Inc........................ 47,500 3,411,925 Eaton Corp.............................. 30,000 2,809,200 Flowserve Corp. (a)..................... 40,000 842,000 JLG Industries, Inc..................... 72,500 761,250 Navistar International Corp............. 30,000 1,341,900 Timken Co............................... 75,000 1,252,500 Trinity Industries, Inc................. 20,000 526,400 ------------- 10,945,175 ------------- MARINE (0.2%) Alexander & Baldwin, Inc................ 20,000 585,600 ------------- ROAD & RAIL (0.3%) Kansas City Southern (a)................ 65,000 789,750 ------------- TRADING COMPANIES & DISTRIBUTORS (0.3%) Genuine Parts Co........................ 30,000 960,600 ------------- INFORMATION TECHNOLOGY (10.1%) COMMUNICATIONS EQUIPMENT (2.4%) Andrew Corp. (a)........................ 40,000 495,200 Comverse Technology, Inc. (a)........... 100,000 1,649,000 Corning, Inc. (a)....................... 50,000 412,500 Motorola, Inc. ......................... 67,500 724,275 Nortel Networks Corp. (a)............... 100,000 325,000 Polycom, Inc. (a)....................... 122,500 2,102,100 Telefonaktiebolaget LM Ericsson, ADR (a).............................. 40,000 619,200 Tellabs, Inc. (a)....................... 125,000 816,250 ------------- 7,143,525 ------------- COMPUTERS & PERIPHERALS (0.5%) SanDisk Corp. (a)....................... 20,000 1,209,200 Sun Microsystems, Inc. (a).............. 100,000 386,000 ------------- 1,595,200 ------------- ELECTRONIC EQUIPMENT & INSTRUMENTS (1.9%) Celestica, Inc. (a)..................... 75,000 1,316,250 Flextronics International Ltd. (a)...... 75,000 1,011,750 Methode Electronics, Inc., Class A...... 100,000 1,200,000 Solectron Corp. (a)..................... 125,000 741,250 Waters Corp. (a)........................ 42,500 1,296,250 ------------- 5,565,500 ------------- INTERNET SOFTWARE & SERVICES (0.2%) Internet Security Systems, Inc. (a)..... 50,000 624,500 ------------- IT SERVICES (0.6%) Concord EFS, Inc. (a)................... 50,000 692,500 Convergys Corp. (a)..................... 50,000 900,000 ------------- 1,592,500 ------------- See Accompanying Notes to Financial Statements 96 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- SHARES VALUE - ----------------------------------------------------------------------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS (3.5%) Atmel Corp. (a)......................... 125,000 $ 573,750 Axcelis Technologies, Inc. (a).......... 100,000 870,000 FEI Co. (a)............................. 75,000 2,061,000 Micron Technology, Inc.................. 57,500 825,700 Mykrolis Corp. (a)...................... 50,000 630,000 Samsung Electronics Co., Ltd., GDR (b).............................. 7,500 1,391,250 Teradyne, Inc. (a)...................... 87,500 1,560,125 Texas Instruments, Inc.................. 100,000 2,385,000 ------------- 10,296,825 ------------- SOFTWARE (1.0%) Activision, Inc. (a).................... 75,000 968,250 Autodesk, Inc........................... 50,000 895,000 SAP AG, ADR............................. 30,000 898,200 ------------- 2,761,450 ------------- MATERIALS (8.4%) CHEMICALS (3.5%) A. Schulman, Inc........................ 50,000 801,000 Calgon Carbon Corp...................... 40,000 251,200 Dow Chemical Co. ....................... 50,000 1,726,500 Eastman Chemical Co..................... 50,000 1,790,500 H.B. Fuller Co. ........................ 50,000 1,324,500 Olin Corp............................... 50,000 910,500 Potash Corp. of Saskatchewan, Inc. ................................ 32,500 2,304,250 Rohm and Haas Co........................ 30,000 1,089,900 ------------- 10,198,350 ------------- CONSTRUCTION MATERIALS (0.3%) Martin Marietta Materials, Inc.......... 20,000 764,600 ------------- CONTAINERS & PACKAGING (1.2%) Sealed Air Corp. (a).................... 30,000 1,459,800 Smurfit-Stone Container Corp. (a)....... 65,000 1,025,700 Temple-Inland, Inc...................... 22,500 1,120,050 ------------- 3,605,550 ------------- METALS & MINING (1.1%) Allegheny Technologies, Inc. ........... 100,000 745,000 Barrick Gold Corp. ..................... 75,000 1,515,750 CONSOL Energy, Inc...................... 50,000 1,010,000 ------------- 3,270,750 ------------- PAPER & FOREST PRODUCTS (2.3%) Abitibi-Consolidated, Inc............... 50,000 378,500 Bowater, Inc............................ 40,100 1,736,731 Georgia-Pacific Corp.................... 75,000 1,737,750 Potlatch Corp........................... 30,000 884,700 Votorantim Celulose e Papel SA, ADR.............................. 75,000 1,972,500 ------------- 6,710,181 ------------- SHARES VALUE - ----------------------------------------------------------------------------- TELECOMMUNICATION SERVICES (3.4%) DIVERSIFIED TELECOMMUNICATION SERVICES (2.1%) AT&T Corp. (a).......................... 50,000 $ 1,115,000 Compania Anonima Nacional Telefonos de Venezuela, ADR.......... 45,000 595,350 Covad Communications Group, Inc. (a)............................. 125,000 475,000 PT Telekomunikasi Indonesia, ADR....................... 75,000 840,000 SBC Communications, Inc................. 87,500 1,967,875 Telefonos de Mexico SA de CV, ADR.............................. 15,000 454,650 Verizon Communications, Inc............. 20,000 706,400 ------------- 6,154,275 ------------- WIRELESS TELECOMMUNICATION SERVICES (1.3%) AT&T Wireless Services, Inc. (a)........ 75,000 646,500 Millicom International Cellular SA (a)............................... 41,000 1,637,950 Vimpel-Communications, ADR (a).......... 30,000 1,617,300 ------------- 3,901,750 ------------- UTILITIES (2.4%) ELECTRIC UTILITIES (0.7%) FirstEnergy Corp........................ 50,000 1,463,000 TECO Energy, Inc........................ 42,500 502,775 ------------- 1,965,775 ------------- GAS UTILITIES (0.6%) NiSource, Inc........................... 40,000 773,600 NUI Corp................................ 57,500 922,875 ------------- 1,696,475 ------------- MULTI-UTILITIES & UNREGULATED POWER (0.9%) Aquila, Inc............................. 100,000 242,000 Duke Energy Corp........................ 42,500 725,900 El Paso Corp............................ 20,000 146,800 ONEOK, Inc.............................. 37,500 787,125 Westar Energy, Inc...................... 40,000 702,800 ------------- 2,604,625 ------------- WATER UTILITIES (0.2%) California Water Service Group.......... 30,000 756,000 ------------- Total Common Stocks (Cost of $193,639,575)............... 234,642,817 ------------- INVESTMENT MANAGEMENT COMPANY (0.5%) Japan Smaller Capitalization Fund, Inc. (Cost of $984,539)................... 150,000 1,356,000 ------------- See Accompanying Notes to Financial Statements 97 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA STRATEGIC INVESTOR FUND (CONT.) AUGUST 31, 2003 PAR VALUE - ----------------------------------------------------------------------------- SHORT-TERM OBLIGATION (19.3%) Repurchase agreement with State Street Bank & Trust Co., dated 08/29/03, due 09/02/03 at 0.860%, collateralized by a U.S. Treasury Note and a U.S. Treasury Bond with maturities to 02/15/10, market value of $57,415,069 (repurchase proceeds $56,292,379) (Cost of $56,287,000)................ $56,287,000 $ 56,287,000 ------------- TOTAL INVESTMENTS (100.2%) (Cost of $250,911,114) (c)........... 292,285,817 ------------- OTHER ASSETS & LIABILITIES, NET (-0.2%)...... (617,796) ------------- NET ASSETS (100.0%).......................... $ 291,668,021 ============= NOTES TO SCHEDULE OF INVESTMENTS: (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 August 31, 2003, the value of this security amounted to $1,391,250, which represents 0.5% of net assets. (c) Cost for federal income tax purposes is $252,859,374. ACRONYM NAME ------- ---- ADR American Depositary Receipt GDR Global Depositary Receipt COLUMBIA BALANCED FUND AUGUST 31, 2003 SHARES VALUE - ----------------------------------------------------------------------------- COMMON STOCKS (63.7%) CONSUMER DISCRETIONARY (11.9%) HOTELS, RESTAURANTS & LEISURE (2.9%) Hilton Hotels Corp...................... 156,675 $ 2,393,994 McDonald's Corp......................... 269,350 6,038,827 Royal Caribbean Cruises Ltd............. 143,500 4,470,025 Yum! Brands, Inc. (a)................... 203,550 6,035,257 ------------- 18,938,103 ------------- SHARES VALUE - ----------------------------------------------------------------------------- INTERNET & CATALOG RETAIL (0.5%) eBay, Inc. (a).......................... 60,200 $ 3,333,876 MEDIA (2.5%) AOL Time Warner, Inc. (a)............... 257,712 4,216,168 Clear Channel Communications, Inc. (a)............................. 46,825 2,112,744 Comcast Corp., Class A (a).............. 69,556 2,069,291 Interpublic Group of Companies, Inc. ................................ 88,600 1,342,290 Liberty Media Corp., Class A (a)........ 343,579 4,157,306 Viacom, Inc., Class B (a)............... 43,400 1,953,000 ------------- 15,850,799 ------------- MULTI-LINE RETAIL (3.5%) Dollar General Corp..................... 169,250 3,880,902 Kohl's Corp. (a)........................ 125,520 7,939,140 Target Corp............................. 160,500 6,516,300 Wal-Mart Stores, Inc. .................. 70,080 4,146,634 ------------- 22,482,976 ------------- SPECIALTY RETAIL (1.5%) Best Buy Co., Inc. (a).................. 82,950 4,314,230 Linens'n Things, Inc. (a)............... 111,050 3,209,345 Lowe's Companies, Inc................... 43,150 2,367,209 ------------- 9,890,784 ------------- TEXTILES, APPAREL & LUXURY GOODS (1.0%) NIKE, Inc., Class B..................... 57,000 3,247,860 Reebok International Ltd................ 90,900 3,040,605 ------------- 6,288,465 ------------- CONSUMER STAPLES (2.7%) BEVERAGES (0.6%) PepsiCo, Inc. .......................... 88,975 3,962,946 ------------- FOOD PRODUCTS (0.1%) Hershey Foods Corp. .................... 13,900 971,610 ------------- HOUSEHOLD PRODUCTS (0.2%) Procter & Gamble Co. ................... 13,625 1,189,326 ------------- PERSONAL PRODUCTS (0.8%) Alberto-Culver Co., Class B............. 63,125 3,603,175 Gillette Co............................. 44,725 1,451,773 ------------- 5,054,948 ------------- TOBACCO (1.0%) Altria Group, Inc....................... 159,675 6,581,803 ------------- See Accompanying Notes to Financial Statements 98 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- SHARES VALUE - ----------------------------------------------------------------------------- ENERGY (5.2%) ENERGY EQUIPMENT & SERVICES (2.4%) BJ Services Co. (a)..................... 81,880 $ 3,059,856 Cooper Cameron Corp. (a)................ 20,300 985,768 ENSCO International, Inc................ 76,850 2,147,957 Nabors Industries Ltd. (a).............. 76,900 3,087,535 Noble Corp. (a)......................... 89,735 3,246,612 Schlumberger Ltd........................ 55,500 2,747,805 ------------- 15,275,533 ------------- OIL & GAS (2.8%) Apache Corp............................. 71,404 4,925,448 ConocoPhillips.......................... 41,450 2,314,568 Devon Energy Corp....................... 38,150 1,974,263 EOG Resources, Inc...................... 35,175 1,491,420 Equitable Resources, Inc................ 38,900 1,535,383 Exxon Mobil Corp. ...................... 131,884 4,972,027 Pioneer Natural Resources Co. (a)....... 39,300 996,648 ------------- 18,209,757 ------------- FINANCIALS (13.3%) BANKS (2.7%) Bank of America Corp.................... 110,610 8,765,843 Bank One Corp. ......................... 95,575 3,772,345 Fifth Third Bancorp..................... 13,675 801,355 U.S. Bancorp............................ 32,700 781,530 Wells Fargo & Co........................ 60,400 3,028,456 ------------- 17,149,529 ------------- DIVERSIFIED FINANCIALS (7.2%) American Express Co..................... 184,775 8,324,114 Citigroup, Inc. ........................ 468,493 20,309,172 Fannie Mae.............................. 37,425 2,424,766 Goldman Sachs Group, Inc................ 33,300 2,946,717 J.P. Morgan Chase & Co. ................ 59,815 2,046,869 MBNA Corp............................... 146,300 3,414,642 Merrill Lynch & Co., Inc................ 75,500 4,060,390 Morgan Stanley.......................... 61,475 2,999,365 ------------- 46,526,035 ------------- INSURANCE (3.4%) American International Group, Inc. ..... 99,862 5,948,779 Chubb Corp.............................. 82,700 5,618,638 Hartford Financial Services Group, Inc........................... 81,800 4,353,396 Marsh & McLennan Companies, Inc. ................................ 40,300 2,015,000 Prudential Financial, Inc............... 111,600 4,063,356 ------------- 21,999,169 ------------- SHARES VALUE - ----------------------------------------------------------------------------- HEALTH CARE (8.6%) BIOTECHNOLOGY (0.8%) Amgen, Inc. (a)......................... 62,733 $ 4,134,105 Gilead Sciences, Inc. (a)............... 15,550 1,035,767 ------------- 5,169,872 ------------- HEALTH CARE EQUIPMENT & SUPPLIES (0.9%) Applera Corp. - Applied Biosystems Group..................... 81,300 1,769,088 Becton, Dickinson & Co.................. 102,500 3,745,350 ------------- 5,514,438 ------------- HEALTH CARE PROVIDERS & SERVICES (1.5%) Aetna, Inc.............................. 33,500 1,909,500 Caremark Rx, Inc. (a)................... 98,200 2,467,766 McKesson Corp........................... 84,450 2,797,633 UnitedHealth Group, Inc................. 15,900 785,937 WellPoint Health Networks, Inc. (a)..... 24,375 1,901,250 ------------- 9,862,086 ------------- PHARMACEUTICALS (5.4%) Bristol-Myers Squibb Co................. 168,544 4,275,961 Forest Laboratories, Inc. (a)........... 39,300 1,847,100 Johnson & Johnson....................... 136,125 6,749,078 Medco Health Solutions, Inc. (a)........ 3,540 94,508 Novartis AG, ADR........................ 104,700 3,870,759 Pfizer, Inc. .......................... 407,590 12,195,093 Shire Pharmaceuticals Group PLC, ADR (a)......................... 102,300 2,378,475 Wyeth................................... 87,600 3,753,660 ------------- 35,164,634 ------------- INDUSTRIALS (7.8%) AEROSPACE & DEFENSE (1.5%) L-3 Communications Holdings, Inc. (a)............................. 97,500 4,981,275 Northrop Grumman Corp. ................. 46,800 4,468,464 ------------- 9,449,739 ------------- AIR FREIGHT & LOGISTICS (0.7%) FedEx Corp.............................. 31,825 2,135,458 Ryder System, Inc....................... 76,100 2,285,283 ------------- 4,420,741 ------------- COMMERCIAL SERVICES & SUPPLIES (1.2%) First Data Corp......................... 45,825 1,759,680 Waste Management, Inc. ................. 214,125 5,697,866 ------------- 7,457,546 ------------- See Accompanying Notes to Financial Statements 99 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA BALANCED FUND (CONT.) AUGUST 31, 2003 SHARES VALUE - ----------------------------------------------------------------------------- ELECTRICAL EQUIPMENT (0.3%) Emerson Electric Co..................... 37,750 $ 2,104,940 ------------- INDUSTRIAL CONGLOMERATES (2.7%) 3M Co. ................................. 29,800 4,245,606 General Electric Co..................... 452,675 13,385,600 ------------- 17,631,206 ------------- MACHINERY (1.4%) Deere & Co. ............................ 87,600 4,950,276 Dover Corp.............................. 60,300 2,292,606 SPX Corp................................ 43,300 2,136,855 ------------- 9,379,737 ------------- INFORMATION TECHNOLOGY (12.3%) COMMUNICATIONS EQUIPMENT (1.7%) Cisco Systems, Inc. (a)................. 216,385 4,143,773 Emulex Corp. (a)........................ 99,710 2,413,979 Motorola, Inc. ......................... 137,700 1,477,521 QUALCOMM, Inc........................... 64,400 2,658,432 ------------- 10,693,705 ------------- COMPUTERS & PERIPHERALS (0.2%) EMC Corp. (a)........................... 121,700 1,551,675 ------------- INTERNET SOFTWARE & SERVICES (0.6%) Yahoo!, Inc. (a)........................ 108,000 3,607,200 ------------- OFFICE ELECTRONICS (0.1%) Xerox Corp. (a)......................... 51,900 557,780 ------------- SEMICONDUCTOR EQUIPMENT & PRODUCTS (4.8%) Advanced Micro Devices, Inc. (a)........ 225,300 2,543,637 Broadcom Corp., Class A (a)............. 81,700 2,232,044 Intel Corp.............................. 170,375 4,876,133 Linear Technology Corp.................. 83,400 3,437,748 Marvell Technology Group Ltd. (a)....... 67,800 2,859,126 National Semiconductor Corp. (a)........ 100,300 2,922,742 NVIDIA Corp. (a)........................ 148,300 2,693,128 Silicon Laboratories, Inc. (a).......... 74,900 3,326,309 Taiwan Semiconductor Manufacturing Co., Ltd., ADR (a)................... 288,349 3,396,751 Vitessee Semiconductor Corp. (a)........ 149,600 1,021,768 Xilinx, Inc. (a)........................ 57,100 1,760,964 ------------- 31,070,350 ------------- SOFTWARE (4.9%) Amdocs Ltd. (a)......................... 124,300 2,781,834 BEA Systems, Inc. (a)................... 95,600 1,295,380 Computer Associates International, Inc................... 75,500 1,935,065 Mercury Interactive Corp. (a)........... 54,400 2,387,616 SHARES VALUE - ----------------------------------------------------------------------------- Microsoft Corp. ........................ 558,475 $ 14,810,757 Oracle Corp. (a)........................ 288,740 3,690,097 Symantec Corp. (a)...................... 34,695 1,992,534 VERITAS Software Corp. (a).............. 89,700 3,092,856 ------------- 31,986,139 ------------- MATERIALS (1.1%) CHEMICALS (0.7%) Air Products & Chemicals, Inc........... 47,650 2,254,798 Praxair, Inc............................ 33,850 2,160,307 ------------- 4,415,105 ------------- CONTAINERS & PACKAGING (0.4%) Smurfit-Stone Container Corp. (a)....... 150,300 2,371,734 ------------- TELECOMMUNICATION SERVICES (0.4%) DIVERSIFIED TELECOMMUNICATION SERVICES (0.4%) SBC Communications, Inc................. 51,915 1,167,568 Verizon Communications, Inc. ........... 40,560 1,432,579 ------------- 2,600,147 ------------- UTILITIES (0.4%) MULTI-UTILITIES & UNREGULATED POWER (0.4%) Consolidated Edison, Inc................ 26,300 1,039,639 DTE Energy Co........................... 41,700 1,455,747 ------------- 2,495,386 ------------- Total Common Stocks (Cost of $340,074,726)............... 411,209,819 ------------- PREFERRED STOCK (0.4%) CONSUMER DISCRETIONARY (0.4%) MEDIA (0.3%) News Corp., Ltd., ADR (Cost of $1,811,447)................. 85,825 2,482,059 ------------- U.S. GOVERNMENT & AGENCY SECURITIES (14.0%) PAR U.S. TREASURY NOTES & BONDS (4.6%) U.S. Treasury Bond, 6.250% 08/15/23...................... $11,950,000 13,268,706 U.S. Treasury Inflation Index Note, 3.625% 01/15/08...................... 5,912,608 6,513,110 U.S. Treasury Notes: 3.500% 11/15/06...................... 7,165,000 7,357,001 4.875% 02/15/12...................... 2,250,000 2,341,672 ------------- 29,480,489 ------------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (0.3%) 7.000% 10/15/31 - 05/15/32.............. 2,144,485 2,267,291 ------------- See Accompanying Notes to Financial Statements 100 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- PAR VALUE - ----------------------------------------------------------------------------- FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) (1.6%) 4.500% 10/20/18 (b)..................... $ 2,300,000 $ 2,249,688 6.000% 03/01/17 - 08/01/17.............. 4,506,179 4,662,292 6.500% 05/01/32 - 08/01/32.............. 3,236,468 3,353,047 ------------- 10,265,027 ------------- FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (4.3%) 4.500% 09/18/18 (b)..................... 17,355,000 17,051,287 5.000% 12/01/17 - 09/01/18.............. 9,052,601 9,099,179 5.915% 07/01/32......................... 1,337,072 1,375,742 ------------- 27,526,208 ------------- FEDERAL HOUSING ADMINISTRATION (FHA) (0.2%) FHA Insured Project, Pool #53-43077, 9.125% 03/25/33...................... 1,553,572 1,572,038 ------------- AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS (3.0%) FHLMC Multiclass Mtg. Partn. Ctfs., Gtd.: Series 2235, Class VN, 7.000% 06/15/14...................... 3,980,000 4,128,555 Series 2462, Class JE, 6.500% 11/15/30...................... 1,810,000 1,887,271 FNMA Gtd. Remic Pass Thru Ctfs.: Remic Tr. 2001-55, Class PC, 6.500% 10/25/31...................... 5,090,000 5,335,576 Remic Tr. 2001-56, Class KD, 6.500% 08/15/31...................... 2,260,000 2,319,726 Remic Tr. 2002-8, Class PD, 6.500% 07/25/30...................... 3,570,000 3,749,518 Remic Tr. 2002-27, Class OG, 6.500% 12/25/30...................... 1,820,000 1,864,999 ------------- 19,285,645 ------------- Total U.S. Government & Agency Securities (Cost of $89,848,437)................ 90,396,698 ------------- CORPORATE NOTES & BONDS (13.8%) INDUSTRIALS (7.1%) Abitibi-Consolidated, Inc., 6.000%, 06/20/13..................... 100,000 90,328 Acetex Corp. 10.875% 08/01/09..................... 25,000 27,250 Advance PCS, 8.500% 04/01/08...................... 250,000 263,750 Airgas, Inc., 9.125% 10/01/11...................... 50,000 55,000 Alcan, Inc., 7.250% 03/15/31...................... 675,000 762,651 Allied Waste North America, Inc., 10.000% 08/01/09..................... 250,000 270,625 PAR VALUE - ----------------------------------------------------------------------------- American Axle & Manufacturing, Inc., 9.750% 03/01/09...................... $ 250,000 $ 268,750 American Home Products Corp., 6.250% 03/15/06...................... 1,370,000 1,487,088 AmerisourceBergen Corp., 8.125% 09/01/08...................... 225,000 237,937 Anadarko Finance Co., 7.500% 05/01/31...................... 1,250,000 1,444,204 Anthem, Inc., 6.800% 08/01/12...................... 925,000 1,015,581 Apogent Technologies, Inc., 6.500% 05/15/13 (c).................. 25,000 24,625 Arch Western Finance, 6.750% 07/01/13 (c).................. 155,000 153,837 AT&T Corp., 8.000% 11/15/31...................... 650,000 735,868 AT&T Wireless Services, Inc., 8.750% 03/01/31...................... 750,000 891,741 Ball Corp., 7.750% 08/01/06...................... 250,000 268,125 Boeing Co., 6.125% 02/15/33...................... 850,000 802,547 British Sky Broadcasting Group, 7.300% 10/15/06...................... 100,000 109,250 Canadian National Railway Co.: 6.450% 07/15/06...................... 300,000 326,447 7.195% 01/02/16...................... 891,544 1,001,350 Canandaigua Brands, Inc., 8.500% 03/01/09...................... 250,000 260,000 Cascades, Inc., 7.250% 02/15/13 (c).................. 115,000 113,562 Chesapeake Energy Corp.: 7.500% 09/15/13 (c).................. 145,000 146,812 8.375% 11/01/08...................... 50,000 52,750 9.000% 08/15/12...................... 20,000 21,600 Cinemark USA, Inc., 9.000% 02/01/13 (c).................. 170,000 181,050 Coca-Cola Enterprises, Inc., 6.750% 01/15/38...................... 1,045,000 1,114,531 Comcast Corp., 7.050% 03/15/33...................... 375,000 390,936 Coors Brewing Co., 6.375% 05/15/12...................... 900,000 967,609 Corrections Corp. of America, 7.500% 05/01/11...................... 100,000 101,500 Cott Beverages, Inc., 8.000% 12/15/11...................... 250,000 261,250 Cox Enterprises, Inc., 8.000% 02/15/07 (c).................. 1,050,000 1,194,931 See Accompanying Notes to Financial Statements 101 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA BALANCED FUND (CONT.) AUGUST 31, 2003 PAR VALUE - ----------------------------------------------------------------------------- CSC Holdings, Inc.: 8.125% 08/15/09...................... $ 25,000 $ 25,813 9.875% 02/15/13...................... 130,000 135,850 DaimlerChrysler NA Holding Corp., 8.500% 01/18/31...................... 475,000 535,572 Deutsche Telekom International Finance BV, 8.500% 06/15/10...................... 525,000 618,796 Dex Media East LLC, 12.125% 11/15/12..................... 75,000 90,563 Diageo Capital PLC, 3.375% 03/20/08...................... 1,100,000 1,077,735 DirecTV Holdings, 8.375% 03/15/13 (c).................. 95,000 103,787 EquiStar Chemical: 10.125% 09/01/08..................... 25,000 25,000 10.625% 05/01/11 (c)................. 25,000 24,875 Ethyl Corp., 8.875% 05/01/10 (c).................. 50,000 50,500 Extended Stay America, Inc., 9.875% 06/15/11...................... 150,000 159,375 General Electric Co., 5.000% 02/01/13...................... 2,500,000 2,468,128 Grant Prideco, Inc.: 9.000% 12/15/09...................... 220,000 231,550 9.625% 12/01/07...................... 15,000 15,975 Harrah's Operating Co., Inc., 7.875% 12/15/05...................... 125,000 135,000 Hasbro, Inc., 8.500% 03/15/06...................... 100,000 108,000 Houghton Mifflin Co., 9.875% 02/01/13 (c).................. 205,000 223,450 International Business Machines Corp., 5.875% 11/29/32...................... 1,700,000 1,642,317 Iron Mountain, Inc., 7.750% 01/15/15...................... 250,000 255,000 John Deere Capital Corp., 3.900% 01/15/08...................... 550,000 551,396 K & F Industries, Inc., 9.625% 12/15/10...................... 145,000 157,325 KB Home, 8.625% 12/15/08...................... 250,000 262,500 Key Energy Services, Inc., 6.375% 05/01/13...................... 80,000 76,000 Kroger Co., 6.200% 06/15/12...................... 650,000 682,902 PAR VALUE - ----------------------------------------------------------------------------- L-3 Communications Corp., 7.625% 06/15/12...................... $ 200,000 $ 208,000 Lamar Media Corp., 8.625% 09/15/07...................... 125,000 129,063 Lear Corp., 7.960% 05/15/05...................... 250,000 268,125 LIN Television Corp., 6.500% 05/15/13 (c).................. 125,000 121,250 Lockheed Martin Corp., 8.500% 12/01/29...................... 800,000 1,018,827 Lowe's Companies, Inc., 6.500% 03/15/29...................... 700,000 731,291 MacDermid, Inc., 9.125% 07/15/11...................... 25,000 27,500 Marathon Oil Corp., 6.800% 03/15/32...................... 975,000 1,008,192 Mediacom LLC, 9.500% 01/15/13...................... 75,000 75,750 Newell Rubbermaid, Inc., 4.000% 05/01/10...................... 950,000 898,581 Nextel Communications, Inc.: 9.375% 11/15/09...................... 25,000 27,000 9.750% 10/31/07...................... 150,000 154,500 Occidental Petroleum Corp., 4.250% 03/15/10...................... 775,000 757,783 Offshore Logistics, Inc., 6.125% 06/15/13 (c).................. 205,000 194,750 Omnicare, Inc., 8.125% 03/15/11...................... 175,000 185,500 Owens-Illinois, Inc., 7.350% 05/15/08...................... 150,000 144,750 Park Place Entertainment Corp., 9.375% 02/15/07...................... 250,000 273,750 Peabody Energy Corp., 6.875% 03/15/13 (c).................. 175,000 175,000 PepsiAmericas, Inc., 3.875% 09/12/07...................... 1,450,000 1,442,722 Province Healthcare Co., 7.500% 06/01/13...................... 50,000 48,125 R.H. Donnelley Financial Corp.: 8.875% 12/15/10 (c).................. 30,000 32,850 10.875% 12/15/12 (c)................. 215,000 250,475 Rogers Cable, Inc.: 6.250% 06/15/13 (c).................. 50,000 46,938 7.875% 05/01/12...................... 185,000 194,019 Scotts Co., 8.625% 01/15/09...................... 240,000 251,400 Select Medical Corp., 9.500% 06/15/09...................... 200,000 216,000 Silgan Holdings, Inc., 9.000% 06/01/09...................... 237,000 245,295 See Accompanying Notes to Financial Statements 102 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- PAR VALUE - ----------------------------------------------------------------------------- Sinclair Broadcasting Group, Inc., 8.000% 03/15/12 ..................... $ 220,000 $ 229,350 Smurfit-Stone Container Corp.: 8.250% 10/01/12...................... 55,000 56,925 8.375% 07/01/12...................... 25,000 25,750 9.750% 02/01/11...................... 35,000 37,975 Speedway Motorsports, Inc., 6.750% 06/01/13 (c).................. 100,000 99,000 Starwood Hotels & Resorts Worldwide, Inc., 7.375% 05/01/07...................... 100,000 104,750 Station Casinos, Inc.: 8.875% 12/01/08...................... 50,000 52,125 9.875% 07/01/10...................... 240,000 264,000 Synagro Technologies, Inc., 9.500% 04/01/09...................... 50,000 53,500 TCI Communications, Inc., 7.250% 08/01/05...................... 685,000 735,859 TD Funding Corp., 8.375% 07/15/11...................... 125,000 130,625 Teekay Shipping Corp., 8.875% 07/15/11...................... 300,000 325,875 Time Warner, Inc., 7.975% 08/15/04...................... 1,153,000 1,210,823 Toll Corp., 7.750% 09/15/07...................... 250,000 256,250 Triad Hospitals, Inc., 8.750% 05/01/09...................... 200,000 213,000 Union Pacific Corp., 3.875% 02/15/09...................... 1,000,000 975,051 United Rentals, Inc., 10.750% 04/15/08..................... 250,000 275,000 United Technologies Corp., 6.500% 06/01/09...................... 1,685,000 1,889,264 Universal Compression, Inc., 7.250% 05/15/10 (c).................. 50,000 50,500 Verizon Global Funding Corp., 7.250% 12/01/10...................... 1,800,000 2,042,872 Viacom, Inc., 5.500% 05/15/33...................... 425,000 379,801 Vintage Petroleum, Inc., 9.750% 06/30/09...................... 160,000 169,600 Wabtec Corp., 6.875% 07/31/13...................... 15,000 14,850 Wal-Mart Stores, Inc., 4.375% 07/12/07...................... 1,570,000 1,631,703 Westport Resources Corp., 8.250% 11/01/11...................... 265,000 283,550 XTO Energy, Inc., 7.500% 04/15/12...................... 300,000 322,500 PAR VALUE - ----------------------------------------------------------------------------- Yum! Brands, Inc., 8.500% 04/15/06...................... $ 250,000 $ 273,125 ------------- 45,931,953 ------------- FINANCIALS (4.6%) American General Finance Corp., 5.375% 09/01/09...................... 475,000 497,408 Bank of America Corp., 7.800% 02/15/10...................... 2,225,000 2,611,260 Bank One Corp., 2.625% 06/30/08...................... 1,300,000 1,222,087 CIT Group, Inc., 7.250% 08/15/05...................... 890,000 965,361 Citigroup, Inc., 7.250% 10/01/10...................... 1,565,000 1,794,612 Ford Motor Credit Co., 7.375% 10/28/09...................... 2,490,000 2,573,953 General Motors Acceptance Corp., 4.500% 07/15/06...................... 1,875,000 1,879,958 Goldman Sachs Group, Inc., 6.125% 02/15/33...................... 675,000 655,750 Health Care Property Investors, Inc., 6.450% 06/25/12...................... 1,200,000 1,241,688 Health Care REIT, Inc., 7.500% 08/15/07...................... 150,000 161,222 Household Finance Corp., 6.400% 06/17/08...................... 1,250,000 1,366,456 iStar Financial, Inc., 8.750% 08/15/08...................... 50,000 54,915 J.P. Morgan Chase & Co., 5.750% 01/02/13...................... 800,000 823,464 Lehman Brothers Holdings, Inc., 4.000% 01/22/08...................... 1,325,000 1,328,395 Merrill Lynch & Co., Inc., 2.470% 03/10/06...................... 1,250,000 1,240,450 Morgan Stanley: 4.250% 05/15/10...................... 375,000 364,640 6.100% 04/15/06...................... 700,000 756,519 SLM Corp., 5.125% 08/27/12...................... 1,900,000 1,889,210 US Bank NA, 6.375% 08/01/11...................... 2,050,000 2,248,797 Wachovia Corp., 3.500% 08/15/08...................... 2,100,000 2,050,228 Washington Mutual, Inc., 5.625% 01/15/07...................... 1,275,000 1,366,008 Wells Fargo & Co., 7.250% 08/24/05...................... 2,000,000 2,191,516 ------------- 29,283,897 ------------- See Accompanying Notes to Financial Statements 103 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA BALANCED FUND (CONT.) AUGUST 31, 2003 PAR VALUE - ----------------------------------------------------------------------------- UTILITIES (1.0%) Dominion Resources, Inc., 2.800% 02/15/05...................... $ 1,250,000 $ 1,255,127 FPL Group Capital, Inc., 6.125% 05/15/07...................... 1,600,000 1,743,794 Kinder Morgan Energy Partners LP, 8.000% 03/15/05...................... 1,475,000 1,604,356 Pogo Producing Co., 8.250% 04/15/11...................... 30,000 31,950 Progress Energy, Inc., 7.750% 03/01/31...................... 500,000 553,574 Southern Power Co., 6.250% 07/15/12...................... 1,300,000 1,378,218 ------------- 6,567,019 ------------- INTERNATIONAL (1.1%) Ontario Province, 3.500% 09/17/07...................... 2,200,000 2,198,746 Quebec Province, 6.500% 01/17/06...................... 2,100,000 2,291,552 Republic of Italy, 2.500% 03/31/06...................... 1,300,000 1,299,923 United Mexican States, 8.000% 09/24/22...................... 1,150,000 1,204,625 ------------- 6,994,846 ------------- Total Corporate Notes & Bonds (Cost of $85,560,831)................ 88,777,715 ------------- OTHER SECURITIZED LOANS (5.7%) ASSET-BACKED SECURITIES (3.6%) Cityscape Home Equity Loan Trust: Series 1997-B, Class A7, 7.410% 05/25/28...................... 1,665,402 1,688,512 Series 1997-4, Class A4, 7.440% 10/25/18...................... 1,384,353 1,433,402 First Alliance Mortgage Trust, Series 1996-1, Class A1, 7.340% 06/20/27...................... 290,488 290,559 IMC Home Equity Loan Trust: Series 1997-3, Class A6, 7.520% 08/20/28...................... 1,085,860 1,117,362 Series 1997-5, Class A9, 7.310% 11/20/28...................... 2,159,988 2,257,659 Merit Securities Corp., Series 13, Class A4, 7.880% 12/28/33...................... 3,980,000 3,849,574 PAR VALUE - ----------------------------------------------------------------------------- Oakwood Mortgage Investors, Inc., Series 2000-D, Class A4, 7.400% 07/15/30...................... $ 1,195,000 $ 1,095,569 Salomon Brothers Mortgage Securities VII, Series 1998-AQ1, Class A5, 7.150% 06/25/28...................... 3,150,000 3,311,051 SLM Student Loan Trust: Series 1997-3, Class A2, 1.604% 10/25/10 (d).................. 3,532,741 3,554,262 Series 1997-4, Class A2, 1.714% 10/25/10 (d).................. 4,518,932 4,578,360 ------------- 23,176,310 ------------- COLLATERALIZED MORTGAGE OBLIGATIONS (1.1%) Bear Stearns Mortgage Securities, Inc., Series 1996-2, Class A1, 4.291% 01/28/25 (d).................. 911,689 897,028 Countrywide Home Loans, Inc., Series 2002-16, Class 1A1, 6.500% 09/25/32...................... 61,711 61,750 First Nationwide Trust, Series 2000-1, Class IIA3, 8.000% 10/25/30...................... 2,669,297 2,691,517 Residential Asset Securitization Trust, Series 2002-A7, Class A2, 5.180% 01/25/27...................... 1,722,544 1,725,609 SACO I, Inc., Series 1995-1, Class A, 12.268% 09/25/24 (c)(d).............. 68,576 68,576 Structured Asset Securities Corp.: Series 2001-12, Class 1A4, 5.800% 09/25/31...................... 228,313 230,700 Series 2003-14, Class 1A3, 5.500% 05/25/33...................... 1,688,546 1,723,342 ------------- 7,398,522 ------------- COMMERCIAL MORTGAGE-BACKED SECURITIES (1.0%) GMAC Commercial Mortgage Asset Corp., Series 2001-FLAA, Class B1, 1.600% 06/15/13 (c)(d)............... 1,441,242 1,440,398 Nationslink Funding Corp., Series 1999-SL, Class A5, 6.888% 05/10/07...................... 4,380,000 4,837,227 ------------- 6,277,625 ------------- Total Other Securitized Loans (Cost of $36,106,366)................ 36,852,457 ------------- See Accompanying Notes to Financial Statements 104 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- PAR VALUE - ----------------------------------------------------------------------------- SHORT-TERM OBLIGATION (5.8%) Repurchase agreement with State Street Bank & Trust Co., dated 08/29/03, due 09/02/03 at 0.860%, collateralized by a U.S. Treasury Note maturing 11/15/03, market value of $38,087,457 (repurchase proceeds $37,343,568) (Cost of $37,340,000)................ $37,340,000 $ 37,340,000 ------------- TOTAL INVESTMENTS (103.4%) (Cost of $590,741,807) (e)........... 667,058,748 ------------- OTHER ASSETS & LIABILITIES, NET (-3.4%)...... (21,867,391) ------------- NET ASSETS (100.0%).......................... $ 645,191,357 ============= NOTES TO SCHEDULE OF INVESTMENTS: (a) Non-income producing. (b) This security, or a portion thereof, has been purchased on a delayed delivery basis whereby the terms that are fixed are the purchase price, interest rate and settlement date. The exact quantity purchased may be slightly more or less than the amount shown. (c) 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 August 31, 2003, the value of these securities amounted to $4,697,166, which represents 0.7% of net assets. (d) Variable rate security. The rate reported is the rate in effect at August 31, 2003. (e) Cost for federal income tax purposes is $595,220,691. ACRONYM NAME ------- ---- ADR American Depositary Receipt COLUMBIA SHORT TERM BOND FUND AUGUST 31, 2003 PAR VALUE - ----------------------------------------------------------------------------- U.S. GOVERNMENT & AGENCY SECURITIES (18.1%) U.S. TREASURY NOTES & BONDS (2.1%) U.S. Treasury Inflation Index Notes, 3.625% 01/15/08...................... $10,375,490 $ 11,429,256 ------------- U.S. AGENCY BONDS (1.4%) Federal Home Loan Bank, 6.375% 11/14/03...................... 5,250,000 5,305,209 Federal Home Loan Mortgage Corp., 4.625% 03/22/06...................... 1,000,000 1,001,798 Federal National Mortgage Association, 3.125% 11/15/03...................... 75,000 75,308 Morocco Government AID Bond, 1.423% 05/01/23 (a).................. 500,000 495,000 PAR VALUE - ----------------------------------------------------------------------------- Small Business Administration, 1.625% 06/25/22 (a).................. $ 636,489 $ 637,451 ------------- 7,514,766 ------------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (0.6%) 6.500% 09/13/13-07/15/32............. 2,318,583 2,419,944 7.000% 11/15/13-08/15/29............. 705,413 748,744 ------------- 3,168,688 ------------- FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) (5.2%) 4.500% 09/18/18 (b).................. 15,100,000 14,821,586 5.500% 05/01/17-12/01/17............. 10,597,503 10,826,699 6.000% 10/01/06-08/01/17............. 2,246,831 2,322,132 7.000% 05/01/19...................... 1,397 1,471 7.500% 09/01/15...................... 327,137 348,460 8.500% 07/01/30...................... 342,623 367,971 ------------- 28,688,319 ------------- FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (4.7%) 4.500% 09/18/18 (b).................. 13,360,000 13,126,200 5.000% 12/01/17-07/01/18............. 245,616 251,976 5.500% 02/01/18...................... 5,530,493 5,652,587 6.000% 03/01/09-05/01/17............. 4,767,932 4,919,619 6.500% 03/01/12-07/01/32............. 264,819 277,503 7.500% 08/01/15...................... 323,024 345,230 8.000% 05/01/05-07/01/31............. 1,192,034 1,278,451 ------------- 25,851,566 ------------- AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS (4.1%) FHLMC: Series 1558, Class C, 6.500% 07/15/23...................... 330,129 338,102 Series 1839, Class C, 6.500% 04/15/25...................... 77,787 78,060 Series 2500, Class PE, 6.000% 06/15/31...................... 1,430,000 1,445,192 Multi-class Mtg. Partn. Ctfs., Gtd.: Series 1138, Class G, 8.500% 09/15/06...................... 100,914 101,520 Series 1283, Class K, 7.000% 06/15/22...................... 557,699 575,848 Series 2387, Class D, 5.500% 12/15/26...................... 808,194 819,065 Structured Pass Thru Securities, Series T-41, Class 1A1, 3.340% 08/25/16...................... 779,625 781,160 FNMA: Series 2001-34, Class AE, 6.000% 07/25/29...................... 1,250,000 1,272,698 Series 2001-55, Class PC, 6.500% 10/25/31...................... 1,900,000 1,991,669 See Accompanying Notes to Financial Statements 105 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA SHORT TERM BOND FUND (CONT.) AUGUST 31, 2003 PAR VALUE - ----------------------------------------------------------------------------- Series 2002-42, Class A, 6.000% 01/25/16...................... $ 1,384,892 $ 1,420,883 Series 2002-W6, Class 1A1, 3.090% 12/25/28...................... 1,355,756 1,359,615 Series 2003-29, Class WY, 4.000% 04/25/33...................... 1,315,278 1,311,772 Series 2003-92, Class FA, 1.650% 09/25/18 (a).................. 6,000,000 6,005,400 Gtd. Remic Pass Thru Certificates: Remic Tr. 1991-146, Class Z, 8.000% 10/25/06...................... 40,788 43,326 Remic Tr. 1993-92, Class C, (c) 05/25/23......................... 1,295,000 979,915 Remic Tr. 1998-36, Class GA, 6.000% 12/18/27...................... 2,114,749 2,156,787 GNMA Gtd. Remic Pass Thru Certificates, Remic Tr. 1997-7, Class PC, 5.000% 05/16/27...................... 1,782,385 1,796,214 ------------- 22,477,226 ------------- Total U.S. Government & Agency Securities (Cost of $99,088,536)................ 99,129,821 ------------- CORPORATE NOTES & BONDS (32.5%) INDUSTRIAL (14.3%) Anthem, Inc., 4.875% 08/01/05...................... 2,225,000 2,319,471 AOL Time Warner, Inc., 6.125% 04/15/06...................... 1,750,000 1,872,671 AT&T Corp., 7.000% 11/15/06...................... 1,300,000 1,442,908 AT&T Wireless Services, Inc., 7.500% 05/01/07...................... 1,970,000 2,201,278 Bell Atlantic Financial Services, Inc., 7.600% 03/15/07...................... 600,000 680,036 Boeing, Inc., 8.100% 11/15/06...................... 1,820,000 2,064,144 Canadian National Railway Co., 6.450% 07/15/06...................... 460,000 500,553 Caterpillar Financial Services Corp., 6.875% 08/01/04...................... 2,500,000 2,621,660 ChevronTexaco Capital Co., 3.500% 09/17/07...................... 3,350,000 3,371,611 Coca-Cola Enterprises, Inc., 8.000% 01/04/05...................... 650,000 701,895 Colgate-Palmolive Co., 1.255% 08/16/04 (a).................. 3,000,000 3,004,680 Conoco, Inc., 5.900% 04/15/04...................... 150,000 154,196 PAR VALUE - ----------------------------------------------------------------------------- ConocoPhillips, 8.500% 05/25/05...................... $ 3,165,000 $ 3,507,238 Costco Wholesale Corp., 5.500% 03/15/07...................... 640,000 690,433 Cox Enterprises, Inc., 8.000% 02/15/07 (d).................. 1,300,000 1,479,439 DaimlerChrysler NA Holding Corp., 4.750% 01/15/08...................... 1,575,000 1,567,256 Deutsche Telekom International Finance, 8.500% 06/15/10...................... 1,450,000 1,709,056 Devon Energy Corp., 2.750% 08/01/06...................... 2,825,000 2,789,199 Gannett Co., Inc., 4.950% 04/01/05...................... 2,000,000 2,092,434 GTE Southwest, Inc., 6.000% 01/15/06...................... 3,725,000 4,015,665 Honeywell International, Inc., 5.125% 11/01/06...................... 3,120,000 3,325,374 International Business Machines Corp.: 2.375% 11/01/06...................... 2,900,000 2,862,149 4.250% 09/15/09...................... 600,000 599,425 Jones Intercable, Inc., 7.625% 04/15/08...................... 1,875,000 2,111,229 Kellogg Co., 6.000% 04/01/06...................... 1,250,000 1,350,002 Kroger Co., 7.650% 04/15/07...................... 1,585,000 1,782,101 Lockheed Martin Corp., 7.700% 06/15/08...................... 990,000 1,143,014 Lowe's Companies, Inc., 7.500% 12/15/05...................... 1,675,000 1,864,525 Marathon Oil Corp., 5.375% 06/01/07...................... 2,725,000 2,889,429 Nestle Holdings (UK) PLC, 5.000% 12/08/03...................... 1,000,000 1,010,163 Newell Rubbermaid, Inc., 2.000% 05/01/05...................... 3,725,000 3,712,346 Pepsi Bottling Holdings, Inc., 5.375% 02/17/04 (d).................. 1,750,000 1,778,077 Procter & Gamble Co., 4.750% 06/15/07...................... 725,000 759,277 Target Corp., 5.950% 05/15/06...................... 1,000,000 1,083,531 TCI Communications, Inc., 7.250% 08/01/05...................... 1,125,000 1,208,527 Time Warner, Inc., 7.975% 08/15/04...................... 375,000 393,806 Union Pacific Corp., 3.875% 02/15/09...................... 1,825,000 1,779,468 See Accompanying Notes to Financial Statements 106 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- PAR VALUE - ----------------------------------------------------------------------------- United Technologies Corp., 4.875% 11/01/06...................... $ 2,475,000 $ 2,612,023 Wal-Mart Stores, Inc.: 3.250% 09/29/03...................... 2,500,000 2,503,765 4.375% 07/12/07...................... 425,000 441,703 WellPoint Health Networks, Inc., 6.375% 06/15/06...................... 2,350,000 2,561,766 Wyeth, 6.250% 03/15/06...................... 1,875,000 2,035,249 ------------- 78,592,772 ------------- FINANCIAL (14.1%) American General Finance Corp., 5.375% 09/01/09...................... 150,000 157,076 Associates Corp. of North America, 5.750% 11/01/03...................... 2,500,000 2,518,300 AXA Financial, Inc., 9.000% 12/15/04...................... 2,925,000 3,162,598 Bank One Corp., 2.625% 06/30/08...................... 3,100,000 2,914,208 BankAmerica Corp., 6.625% 10/15/07...................... 5,075,000 5,597,238 CIT Group, Inc.: 7.250% 08/15/05...................... 125,000 135,584 7.625% 08/16/05...................... 1,065,000 1,166,424 Citigroup, Inc., 6.750% 12/01/05...................... 2,700,000 2,951,286 Countrywide Home Loans, Inc., 5.250% 06/15/04...................... 1,175,000 1,209,661 Ford Motor Credit Co., 7.375% 10/28/09...................... 5,425,000 5,607,909 General Electric Capital Corp., 7.250% 05/03/04...................... 515,000 535,069 General Motors Acceptance Corp., 4.500% 07/15/06...................... 850,000 852,247 6.750% 01/15/06...................... 2,500,000 2,637,678 Goldman Sachs Group, Inc., 4.125% 01/15/08...................... 2,560,000 2,577,382 Health Care Property Investors, Inc., 6.875% 06/08/05...................... 2,075,000 2,189,478 Household Finance Corp., 6.400% 06/17/08...................... 3,225,000 3,525,457 J.P. Morgan Chase & Co., 3.625% 05/01/08...................... 3,500,000 3,449,149 Lehman Brothers Holdings, Inc., 4.000% 01/22/08...................... 1,900,000 1,904,868 8.750% 03/15/05...................... 500,000 548,203 Merrill Lynch & Co., Inc., 2.470% 03/10/06...................... 2,460,000 2,441,206 Morgan Stanley, 6.100% 04/15/06...................... 2,500,000 2,701,852 PAR VALUE - ----------------------------------------------------------------------------- SLM Corp., 5.625% 04/10/07...................... $ 4,000,000 $ 4,288,648 Security Capital Group, Inc., 7.150% 06/15/07...................... 6,315,000 7,044,465 U.S. Bancorp, 3.125% 03/15/08...................... 5,750,000 5,576,666 Wachovia Corp., 4.950% 11/01/06...................... 3,300,000 3,493,769 Washington Mutual, Inc., 5.625% 01/15/07...................... 2,600,000 2,785,585 Wells Fargo & Co., 7.250% 08/24/05...................... 2,675,000 2,931,153 Wells Fargo Financial Inc., 7.000% 11/01/05...................... 2,180,000 2,388,818 ------------- 77,291,977 ------------- UTILITIES (1.5%) Dominion Resources, Inc., 2.800% 02/15/05...................... 2,050,000 2,058,409 FPL Group Capital, Inc.: 6.875% 06/01/04...................... 250,000 259,590 7.625% 09/15/06...................... 2,500,000 2,826,175 Kinder Morgan Energy Partners LP, 8.000% 03/15/05...................... 915,000 995,245 Progress Energy, Inc., 5.850% 10/30/08...................... 1,125,000 1,183,230 Virginia Electric and Power Co., 5.375% 02/01/07...................... 1,200,000 1,274,069 ------------- 8,596,718 ------------- INTERNATIONAL (2.6%) Canadian Government Bond, 6.750% 08/28/06...................... 1,000,000 1,110,916 Province of Ontario, 3.500% 09/17/07...................... 3,500,000 3,498,005 Quebec Province: 5.500% 04/11/06...................... 4,125,000 4,416,312 6.500% 01/17/06...................... 1,100,000 1,200,337 Republic of Italy, 2.500% 03/31/06...................... 1,950,000 1,949,885 United Mexican States, 4.625% 10/08/08...................... 2,000,000 1,985,000 ------------- 14,160,455 ------------- Total Corporate Notes & Bonds (Cost of $177,515,391)............... 178,641,922 ------------- OTHER SECURITIZED LOANS (32.1%) ASSET BACKED SECURITIES (11.5%) Americredit Automobile Receivables Trust: Series 2000-1, Class B, 7.160% 09/05/05...................... 2,830,000 2,897,299 See Accompanying Notes to Financial Statements 107 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA SHORT TERM BOND FUND (CONT.) AUGUST 31, 2003 PAR VALUE - ----------------------------------------------------------------------------- Series 2001-B, Class A4, 5.370% 06/12/08...................... $ 1,000,000 $ 1,035,665 Chase Manhattan Auto Owner Trust, Series 2000-A, Class A4, 6.260% 06/15/07...................... 1,861,797 1,906,287 Ford Credit Auto Owner Trust: Series 2000-C, Class A5, 7.260% 07/15/04...................... 559,194 561,057 Series 2002-B, Class A3A, 4.140% 12/15/05...................... 3,500,000 3,560,335 Green Tree Financial Corp., 7.900% 06/15/27...................... 385,801 385,002 Harley Davidson Motorcycle Trust, 3.090% 06/15/10...................... 1,525,000 1,551,572 Honda Auto Receivables Owner Trust: Series 2001-2, Class A4, 5.090% 10/18/06...................... 2,750,000 2,820,487 Series 2002-3, Class A3, 3.000% 05/18/06...................... 2,000,000 2,029,744 IMC Home Equity Loan Trust: Series 1995-3, Class A5, 7.500% 04/25/26...................... 1,312,000 1,312,087 Series 1997-3, Class A6, 7.520% 08/20/28...................... 629,799 648,070 Series 1997-3, Class A7, 7.080% 08/20/28...................... 335,807 344,827 Merit Securities Corp., Series 1999-13, Class A4, 7.880% 12/28/33...................... 6,435,000 6,224,122 Nissan Auto Receivables Owner Trust, Series 2002-B, Class A4, 4.600% 09/17/07...................... 2,500,000 2,607,296 Oakwood Mortgage Investors, Inc., Series 2000-D, Class A4, 7.400% 07/15/30...................... 2,680,000 2,457,009 SLMA Student Loan Trust: Series 1996-2, Class A2, 1.720% 07/27/09 (a).................. 8,952,533 9,047,819 Series 1996-3, Class A2, 1.690% 10/26/09 (a).................. 2,736,519 2,754,168 Series 1997-2, Class A2, 1.610% 01/25/10 (a).................. 1,980,333 1,988,219 Series 1997-4, Class A2, 1.760% 10/25/10 (a).................. 1,635,812 1,657,325 Series 1998-1, Class A2, 1.770% 10/25/11 (a).................. 2,566,096 2,594,836 Series 1998-2, Class A2, 1.740% 01/25/14 (a).................. 12,843,182 12,956,554 PAR VALUE - ----------------------------------------------------------------------------- Toyota Auto Receivables Owner Trust, Series 2001-C, Class A4, 4.720% 09/15/08...................... $ 1,675,000 $ 1,731,581 ------------- 63,071,361 ------------- COLLATERALIZED MORTGAGE OBLIGATIONS (19.8%) Bear Stearns Asset-Backed Securities, Inc.: Series 2002-AC5, Class 2A4, 5.625% 11/25/32...................... 1,643,619 1,670,678 Series 2003-AC2, Class A3, 3.500% 06/25/33 (a).................. 4,842,542 4,758,470 Countrywide Home Loans: Series 1999-A1, Class A1, 6.750% 03/25/29...................... 240,239 241,044 Series 2002-16, Class 1A1, 6.500% 09/25/32...................... 113,893 113,965 Series 2002-32, Class 2A3, 5.000% 12/25/17...................... 3,414,642 3,453,271 Series 2002-J5, Class 1A1, 5.750% 01/25/33...................... 805,041 814,371 Series 2003-J7, Class 4A2, 1.510% 08/25/18 (a).................. 13,914,035 13,880,201 First Horizon Asset Securities, Inc.: Series 2002-6, Class 1A1, 6.000% 11/25/32...................... 34,462 34,461 Series 2003-2, Class 2A1, 1.610% 03/25/18 (a).................. 12,050,625 12,104,180 Series 2003-4, Class 2A2, 1.560% 06/25/18 (a).................. 3,523,993 3,523,993 GMAC Mortgage Corporation Loan Trust, Series 2003-J3, Class A1, 1.610% 05/25/18 (a).................. 7,633,224 7,598,913 IMPAC Secured Assets Common Owner Trust: Series 2002-2, Class A7, 4.500% 04/25/33...................... 127,953 128,320 Series 2002-3, Class A2, 5.210% 08/25/32 (a).................. 238,951 239,923 Ocwen Residential MBS Corp., Series 1998-R1, Class A1, 7.000% 10/25/40 (a)(d)............... 463,738 473,623 PNC Mortgage Securities Corp.: Series 1996-PR1, Class A, 5.719% 04/28/27 (a).................. 130,520 130,553 Series 1998-12, Class 4A5, 6.475% 01/25/29...................... 65,034 66,366 Series 1998-14, Class 2A1, 6.250% 01/25/14...................... 2,624,975 2,695,126 Residential Accredited Loans, Inc., Series 2002-QS9, Class A1, 7.290% 07/25/32 (a).................. 528,492 530,863 Residential Asset Securitization Trust: Series 2002-A1, Class A4, 5.790% 01/25/30 (a).................. 700,000 713,626 See Accompanying Notes to Financial Statements 108 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- PAR VALUE - ----------------------------------------------------------------------------- Series 2002-A5, Class A2, 5.820% 01/25/27...................... $ 527,972 $ 528,277 Series 2002-A7, Class A2, 5.180% 01/25/27...................... 1,070,853 1,072,759 Series 2002-A14J, Class A14, 6.000% 01/25/33...................... 2,591,444 2,640,456 Residential Funding Mortgage Securities I, Inc.: Series 1999-S25, Class A1, 6.750% 12/25/14...................... 380,311 386,641 Series 2000-S2, Class A3, 7.500% 02/25/30...................... 294,499 295,456 Series 2002-S13, Class A5, 6.250% 10/25/32...................... 1,005,684 1,032,657 Series 2002-S15, Class A2, 5.400% 09/25/32...................... 1,006,473 1,023,507 Series 2002-S16, Class A7, 5.500% 10/25/17...................... 4,010,696 4,107,288 Series 2003-S8, Class A1, 5.000% 05/25/18...................... 10,266,647 10,535,140 Series 2003-S14, Class A5, 1.510% 07/25/18 (a).................. 12,740,108 12,708,511 SACO I, Inc., Series 1997-2, Class 1A5, 7.000% 08/25/36 (d).................. 1,691,122 1,714,412 Structured Asset Mortgage Investments, Inc.: Series 2002-17, Class 1A3, 6.000% 09/25/32...................... 2,250,973 2,302,318 Series 2003-14, Class 1A3, 5.500% 05/25/33...................... 844,273 861,671 Washington Mutual Mortgage Securities Corp.: Series 2002-MS7, Class 1A14, 6.000% 11/25/32...................... 3,127,000 3,167,856 Series 2003-MS5, Class 1A4, 1.610% 03/25/18 (a).................. 6,971,079 6,935,143 Series 2003-S4, Class 1A3, 1.610% 06/25/18 (a).................. 5,153,063 5,122,170 Wells Fargo Mortgage-Backed Securities Trust: Series 2002-22, Class 2A2, 5.500% 01/25/33...................... 343,130 348,804 Series 2002-D, Class 1A1, 5.500% 08/25/32 (a).................. 782,108 794,921 ------------- 108,749,934 ------------- COMMERCIAL MORTGAGE BACKED SECURITIES (0.8%) GMAC Commercial Mortgage Asset Corp., Series 2001-FLAA, Class B1, 1.610% 06/15/13 (a)(d)............... 1,847,411 1,846,328 Merrill Lynch Mortgage Investors, Inc., Series 1996-C1, Class A3, 7.420% 04/25/28...................... 371,187 381,384 PAR VALUE - ----------------------------------------------------------------------------- Nationslink Funding Corp., Series 1999-SL, Class A5, 6.888% 11/10/30...................... $ 2,210,000 $ 2,440,701 ------------- 4,668,413 ------------- Total Other Securitized Loans (Cost of $176,750,280)............... 176,489,708 ------------- SHORT-TERM OBLIGATIONS (19.9%) U.S. TREASURY BILL (2.7%) 1.000% 01/22/04......................... 15,000,000 14,940,417 ------------- REPURCHASE AGREEMENT (17.2%) Repurchase agreement with State Street Bank & Trust Co., dated 08/29/03, due 09/02/03 at 0.860% collateralized by U.S. Treasury Notes with various maturities to 10/15/06, market value of $96,128,998 (repurchase proceeds $94,251,005)................ 94,242,000 94,242,000 ------------- TOTAL SHORT-TERM OBLIGATIONS (Cost of $109,182,417)............... 109,182,417 ------------- TOTAL INVESTMENTS (102.6%) (Cost of $562,536,624)(e)............ 563,443,868 ------------- OTHER ASSETS & LIABILITIES, NET (-2.6%)...... (14,267,791) ------------- NET ASSETS (100.0%).......................... $ 549,176,077 ============= NOTES TO SCHEDULE OF INVESTMENTS: (a) Interest rates of variable rate securities change periodically. The rate listed is as of August 31, 2003. (b) This security, or a portion thereof, has been purchased on a delayed delivery basis whereby the terms that are fixed are the purchase price, interest rate and settlement date. The exact quantity purchased may be slightly more or less than the amount shown. (c) Zero coupon bond. (d) 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 August 31, 2003, these securities amounted to $7,291,879 which represents 1.3% of net assets. (e) Cost for federal income tax purpose is $562,379,602. COLUMBIA FIXED INCOME SECURITIES FUND AUGUST 31, 2003 PAR VALUE - ----------------------------------------------------------------------------- U.S. GOVERNMENT & AGENCY SECURITIES (44.0%) U.S. TREASURY NOTES & BONDS (11.2%) U.S. Treasury Bonds: 6.250% 08/15/23...................... $22,410,000 $ 24,882,988 7.250% 05/15/16...................... 9,500,000 11,615,982 See Accompanying Notes to Financial Statements 109 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA FIXED INCOME SECURITIES FUND (CONT.) AUGUST 31, 2003 PAR VALUE - ----------------------------------------------------------------------------- U.S. Treasury Inflation Index Note, 3.625% 01/15/08...................... $15,293,188 $ 16,846,410 U.S. Treasury Note, 3.500% 11/15/06...................... 5,000,000 5,133,985 ------------- 58,479,365 ------------- FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) (8.9%) 4.500% 09/18/18 (a).................. 5,000,000 4,907,810 4.500% 10/20/18 (a).................. 7,290,000 7,130,531 6.000% 05/01/17 - 12/01/32........... 28,311,879 28,891,682 6.500% 11/15/30 - 08/01/32 .......... 5,277,389 5,498,710 ------------- 46,428,733 ------------- FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (18.2%) 4.500% 09/18/18 (a).................. 55,560,000 54,587,700 5.000% 12/01/17 - 08/01/18........... 31,638,714 31,795,724 6.000% 03/01/09 - 03/01/33........... 6,455,154 6,584,357 6.052% 06/01/32...................... 181,718 190,077 6.149% 07/01/32...................... 1,462,708 1,515,981 6.500% 07/01/32 ..................... 212,881 220,421 ------------- 94,894,260 ------------- FEDERAL HOUSING ADMINISTRATION (FHA) (0.7%) FHA Insured Project: Pool #067-22003, 8.200% 06/01/31...................... 1,129,567 1,166,447 Pool #071-94016, 8.625% 05/01/23...................... 2,121,755 2,218,743 ------------- 3,385,190 ------------- AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS (5.0%) FHLMC GNMA Multiclass Mtg. Partn. Ctfs. Gtd., Series 24, Class J, 6.250% 11/25/23...................... 2,310,000 2,429,558 FHLMC Multiclass Mtg. Partn. Ctfs. Gtd.: Series 1558, Class C, 6.500% 07/15/23...................... 1,316,556 1,348,350 Series 1602, Class PJ, 6.500% 10/15/23...................... 510,000 548,224 Series 2085, Class PD, 6.250% 11/15/26...................... 2,992,863 3,040,164 Series 2113, Class MU, 6.500% 08/15/27...................... 1,701,932 1,740,899 Series 2235, Class VN, 7.000% 06/15/14...................... 4,840,000 5,020,655 FNMA Gtd. Remic Pass Thru Ctfs.: Remic Tr. 1996-W2, Class A7, 7.800% 06/25/26...................... 946,452 1,016,461 PAR VALUE - ----------------------------------------------------------------------------- Remic Tr. 2001-55, Class PC, 6.500% 10/25/31...................... $ 5,418,000 $ 5,679,401 Remic Tr. 2001-56, Class KD, 6.500% 07/25/30...................... 4,790,000 4,916,587 ------------- 25,740,299 ------------- Total U.S. Government & Agency Securities (Cost of $229,268,736)............... 228,927,847 ------------- CORPORATE NOTES & BONDS (40.8%) INDUSTRIALS (24.1%) Abitibi-Consolidated, Inc.: 6.000% 06/20/13...................... 75,000 67,746 7.875% 08/01/09...................... 225,000 232,956 Acetex Corp.: 10.875% 08/01/09..................... 40,000 43,600 10.875% 08/01/09 (b)................. 175,000 191,625 Advance PCS, 8.500% 04/01/08...................... 750,000 791,250 Airgas, Inc., 9.125% 10/01/11...................... 215,000 236,500 Alcan, Inc., 7.250% 03/15/31...................... 2,400,000 2,711,650 Allied Waste North America, Inc., 10.000% 08/01/09..................... 550,000 595,375 American Axle & Manufacturing, Inc., 9.750% 03/01/09...................... 600,000 645,000 American Home Products Corp., 6.250% 03/15/06...................... 2,000,000 2,170,932 AmerisourceBergen Corp., 8.125% 09/01/08...................... 550,000 581,625 Anadarko Finance Co., 7.500% 05/01/31...................... 2,610,000 3,015,497 Anadarko Petroleum Corp., 3.250% 05/01/08...................... 1,000,000 968,860 Anheuser-Busch Companies, Inc.: 5.625% 10/01/10...................... 3,000,000 3,230,343 5.750% 04/01/10...................... 530,000 571,566 Anthem, Inc., 6.800% 08/01/12...................... 1,550,000 1,701,784 Arch Western Finance, 6.750% 07/01/13 (b).................. 305,000 302,712 AT&T Corp., 8.500% 11/15/31...................... 1,390,000 1,573,625 AT&T Wireless Services, Inc., 8.750% 03/01/31...................... 2,300,000 2,734,672 Ball Corp., 7.750% 08/01/06...................... 600,000 643,500 Boeing Co.: 5.125% 02/15/13...................... 335,000 326,912 6.125% 02/15/33...................... 1,475,000 1,392,655 See Accompanying Notes to Financial Statements 110 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- PAR VALUE - ----------------------------------------------------------------------------- BP Amoco PLC, 5.900% 04/15/09...................... $ 1,800,000 $ 1,965,874 British Sky Broadcasting Group, 7.300% 10/15/06...................... 200,000 218,500 Canadian National Railway Co., 7.195% 01/02/16...................... 1,906,913 2,141,777 Canandaigua Brands, Inc., 8.500% 03/01/09...................... 650,000 676,000 Cascades, Inc., 7.250% 02/15/13 (b).................. 235,000 232,063 Chesapeake Energy Corp.: 7.500% 09/15/13 (b).................. 320,000 324,000 8.125% 04/01/11...................... 25,000 26,125 8.375% 11/01/08...................... 165,000 174,075 9.000% 08/15/12...................... 45,000 48,600 ChevronTexaco Capital Co., 3.500% 09/17/07...................... 4,160,000 4,186,836 Cinemark USA, Inc., 9.000% 02/01/13...................... 435,000 463,275 Coca-Cola Enterprises, Inc., 6.750% 01/15/38...................... 1,000,000 1,066,537 Comcast Corp., 7.050% 03/15/33...................... 870,000 906,972 Coors Brewing Co., 6.375% 05/15/12...................... 1,200,000 1,290,145 Corrections Corp. of America: 7.500% 05/01/11...................... 75,000 76,125 7.500% 05/01/11 (b).................. 200,000 203,000 Costco Wholesale Corp., 5.500% 03/15/07...................... 1,900,000 2,049,722 Cott Beverages, Inc., 8.000% 12/15/11...................... 570,000 595,650 Cox Communications, Inc., 7.875% 08/15/09...................... 235,000 272,860 Cox Enterprises, Inc., 8.000% 02/15/07 (b).................. 2,250,000 2,560,567 CSC Holdings, Inc.: 8.125% 08/15/09...................... 75,000 77,437 9.875% 02/15/13...................... 375,000 391,875 DaimlerChrysler NA Holding Corp., 8.500% 01/18/31...................... 1,175,000 1,324,835 Deutsche Telekom International Finance BV, 8.500% 06/15/10...................... 1,390,000 1,638,336 Dex Media East LLC, 12.125% 11/15/12..................... 425,000 513,188 Diageo Capital PLC, 3.375% 03/20/08...................... 2,570,000 2,517,981 DirecTV Holdings, 8.375% 03/15/13 (b).................. 210,000 229,425 PAR VALUE - ----------------------------------------------------------------------------- Equistar Chemical: 10.125% 09/01/08..................... $ 25,000 $ 25,000 10.625% 05/01/11 (b)................. 25,000 24,875 Ethyl Corp., 8.875% 05/01/10...................... 50,000 50,500 Extended Stay America, Inc., 9.875% 06/15/11...................... 500,000 531,250 General Electric Co., 5.000% 02/01/13...................... 5,375,000 5,306,474 Grant Prideco, Inc.: 9.000% 12/15/09...................... 460,000 484,150 9.625% 12/01/07...................... 40,000 42,600 Harrah's Operating Co., Inc., 7.875% 12/15/05...................... 250,000 270,000 Hasbro, Inc., 8.500% 03/15/06...................... 600,000 648,000 Houghton Mifflin Co., 9.875% 02/01/13 (b).................. 405,000 441,450 International Business Machines Corp., 5.875% 11/29/32...................... 3,460,000 3,342,599 International Game Technology, 8.375% 05/15/09...................... 250,000 292,704 Iron Mountain, Inc., 8.625% 04/01/13...................... 1,000,000 1,040,000 ITT Corp., 6.750% 11/15/05...................... 275,000 286,687 John Deere Capital Corp., 3.900% 01/15/08...................... 1,400,000 1,403,553 K & F Industries, Inc., 9.625% 12/15/10...................... 285,000 309,225 KB Home, 8.625% 12/15/08...................... 500,000 525,000 Kennametal, Inc., 7.200% 06/15/12...................... 115,000 119,108 Key Energy Services, Inc.: 6.375% 05/01/13...................... 170,000 161,500 8.375% 03/01/08...................... 75,000 78,375 Kinder Morgan Energy Partners LP, 6.750% 03/15/11...................... 2,750,000 3,040,752 Kroger Co., 7.650% 04/15/07...................... 1,450,000 1,630,313 L-3 Communications Corp., 7.625% 06/15/12...................... 485,000 504,400 Lamar Media Corp.: 7.250% 01/01/13...................... 150,000 155,625 8.625% 09/15/07...................... 250,000 258,125 Lear Corp., 7.960% 05/15/05...................... 600,000 643,500 LIN Television Corp., 6.500% 05/15/13 (b).................. 300,000 291,000 See Accompanying Notes to Financial Statements 111 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA FIXED INCOME SECURITIES FUND (CONT.) AUGUST 31, 2003 PAR VALUE - ----------------------------------------------------------------------------- Lockheed Martin Corp., 8.500% 12/01/29...................... $ 2,135,000 $ 2,718,995 Lowe's Companies, Inc., 6.500% 03/15/29...................... 1,200,000 1,253,642 MacDermid, Inc., 9.125% 07/15/11...................... 115,000 126,500 Marathon Oil Corp., 6.800% 03/15/32...................... 2,450,000 2,533,405 Mediacom LLC, 9.500% 01/15/13...................... 200,000 202,000 Newell Rubbermaid, Inc., 4.000% 05/01/10...................... 2,545,000 2,407,252 Nextel Communications, Inc.: 9.375% 11/15/09...................... 125,000 135,000 9.750% 10/31/07...................... 300,000 309,000 Occidental Petroleum Corp., 4.250% 03/15/10...................... 1,825,000 1,784,456 Offshore Logistics, Inc., 6.125% 06/15/13 (b).................. 405,000 384,750 Omnicare, Inc., 8.125% 03/15/11...................... 275,000 291,500 Owens-Illinois, Inc., 7.350% 05/15/08...................... 250,000 241,250 Park Place Entertainment Corp., 9.375% 02/15/07...................... 600,000 657,000 Peabody Energy Corp., 6.875% 03/15/13...................... 400,000 400,000 Pepsi Bottling Holdings, Inc., 5.625% 02/17/09 (b).................. 4,050,000 4,342,390 Phillips Petroleum Co., 8.500% 05/25/05...................... 2,675,000 2,964,253 Pogo Producing Co., 8.250% 04/15/11...................... 65,000 69,225 Pride International, Inc., 9.375% 05/01/07...................... 269,000 277,070 Procter & Gamble Co., 4.750% 06/15/07...................... 1,950,000 2,042,192 R.H. Donnelley Financial Corp.: 8.875% 12/15/10 (b).................. 50,000 54,750 10.875% 12/15/12 (b)................. 360,000 419,400 Rogers Cable, Inc., 7.875% 05/01/12...................... 470,000 492,913 Scotts Co., 8.625% 01/15/09...................... 530,000 555,175 Select Medical Corp., 9.500% 06/15/09...................... 500,000 540,000 Silgan Holdings, Inc., 9.000% 06/01/09...................... 570,000 589,950 PAR VALUE - ----------------------------------------------------------------------------- Sinclair Broadcasting Group, Inc., 8.000% 03/15/12 ..................... $ 440,000 $ 458,700 Smurfit-Stone Container Corp.: 8.250% 10/01/12...................... 130,000 134,550 9.750% 02/01/11...................... 455,000 493,675 Speedway Motorsports, Inc., 6.750% 06/01/13 (b).................. 200,000 198,000 Station Casinos, Inc.: 8.875% 12/01/08...................... 75,000 78,188 9.875% 07/01/10...................... 500,000 550,000 Synagro Technologies, Inc., 9.500% 04/01/09...................... 75,000 80,625 TCI Communications, Inc., 7.250% 08/01/05...................... 1,800,000 1,933,643 TD Funding Corp., 8.375% 07/15/11 (b).................. 300,000 313,500 Teekay Shipping Corp., 8.875% 07/15/11...................... 775,000 841,844 Time Warner, Inc., 7.975% 08/15/04...................... 1,950,000 2,047,792 Toll Corp., 7.750% 09/15/07...................... 600,000 615,000 Triad Hospitals, Inc., 8.750% 05/01/09...................... 600,000 639,000 Union Pacific Corp., 3.875% 02/15/09...................... 2,340,000 2,281,619 United Rentals, Inc., 10.750% 04/15/08..................... 500,000 550,000 United Technologies Corp., 7.125% 11/15/10...................... 4,125,000 4,709,583 Universal Compression, Inc., 7.250% 05/15/10 (b).................. 75,000 75,750 Verizon Global Funding Corp., 7.250% 12/01/10...................... 2,175,000 2,468,471 Viacom, Inc., 5.500% 05/15/33...................... 1,100,000 983,015 Vintage Petroleum, Inc., 9.750% 06/30/09...................... 245,000 259,700 Wabtec Corp., 6.875% 07/31/13 (b).................. 140,000 138,600 Wal-Mart Stores, Inc., 4.375% 07/12/07...................... 2,350,000 2,442,357 WellPoint Health Networks, Inc., 6.375% 06/15/06...................... 2,365,000 2,578,117 Westport Resources Corp., 8.250% 11/01/11...................... 610,000 652,700 XTO Energy, Inc., 7.500% 04/15/12...................... 600,000 645,000 Yum! Brands, Inc., 8.500% 04/15/06...................... 500,000 546,250 ------------- 125,316,677 ------------- See Accompanying Notes to Financial Statements 112 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- PAR VALUE - ----------------------------------------------------------------------------- FINANCIALS (11.8%) American General Finance Corp., 5.375% 09/01/09...................... $ 850,000 $ 890,099 Bank of America Corp.: 5.875% 02/15/09...................... 1,355,000 1,462,076 7.800% 02/15/10...................... 2,700,000 3,168,720 Bank One Corp., 2.625% 06/30/08...................... 2,800,000 2,632,188 CIT Group, Inc., 7.250% 08/15/05...................... 970,000 1,052,135 Citigroup, Inc., 7.250% 10/01/10...................... 2,350,000 2,694,785 Equitable Companies, Inc., 9.000% 12/15/04...................... 2,475,000 2,676,044 Ford Motor Credit Co., 7.375% 10/28/09...................... 5,700,000 5,892,181 General Electric Capital Corp., 6.750% 03/15/32...................... 665,000 713,172 General Motors Acceptance Corp., 4.500% 07/15/06...................... 2,615,000 2,621,914 Goldman Sachs Group, Inc., 6.125% 02/15/33...................... 1,525,000 1,481,510 Health Care Property Investors, Inc., 6.450% 06/25/12...................... 2,390,000 2,473,029 Health Care REIT, Inc., 7.500% 08/15/07...................... 500,000 537,405 Household Finance Corp., 6.400% 06/17/08...................... 2,550,000 2,787,571 iStar Financial, Inc., 7.000% 03/15/08...................... 200,000 204,500 J.P. Morgan Chase & Co., 5.750% 01/02/13...................... 2,545,000 2,619,645 Lehman Brothers Holdings, Inc., 4.000% 01/22/08...................... 2,800,000 2,807,174 Merrill Lynch & Co., Inc., 2.470% 03/10/06...................... 3,000,000 2,977,080 Morgan Stanley: 4.250% 05/15/10...................... 955,000 928,617 6.100% 04/15/06...................... 1,650,000 1,783,223 SLM Corp., 5.125% 08/27/12...................... 3,900,000 3,877,852 US Bank NA, 6.375% 08/01/11...................... 4,000,000 4,387,896 Wachovia Corp., 3.500% 08/15/08...................... 3,660,000 3,573,254 Washington Mutual, Inc., 5.625% 01/15/07...................... 2,505,000 2,683,804 Wells Fargo & Co., 4.875% 06/12/07...................... 4,175,000 4,411,000 ------------- 61,336,874 ------------- PAR VALUE - ----------------------------------------------------------------------------- UTILITIES (2.1%) Dominion Resources, Inc., 2.800% 02/15/05...................... $ 2,750,000 $ 2,761,281 FPL Group Capital, Inc., 6.125% 05/15/07...................... 3,525,000 3,841,795 Progress Energy, Inc., 7.750% 03/01/31...................... 1,215,000 1,345,186 Southern Power Co., 6.250% 07/15/12...................... 3,000,000 3,180,504 ------------- 11,128,766 ------------- INTERNATIONAL (2.8%) British Columbia Province, 5.375% 10/29/08...................... 1,900,000 2,031,866 Hydro-Quebec, 6.970% 03/01/05...................... 1,000,000 1,075,766 Ontario Province: 3.500% 09/17/07...................... 3,825,000 3,822,820 7.000% 01/30/07...................... 2,490,000 2,794,442 Republic of Italy, 2.500% 03/31/06...................... 2,750,000 2,749,838 United Mexican States, 8.000% 09/24/22...................... 2,105,000 2,204,987 ------------- 14,679,719 ------------- Total Corporate Notes & Bonds (Cost of $205,480,476)............... 212,462,036 ------------- OTHER SECURITIZED LOANS (13.8%) ASSET-BACKED SECURITIES (7.3%) Cityscape Home Equity Loan Trust, Series 1997-4, Class A4, 7.440% 10/25/18...................... 941,360 974,713 ContiMortgage Home Equity Loan Trust, Series 1999-3, Class A6, 7.680% 12/25/29...................... 2,700,000 2,855,557 IMC Home Equity Loan Trust: Series 1995-3, Class A5, 7.500% 04/25/26...................... 1,980,000 1,980,132 Series 1997-3, Class A6, 7.520% 08/20/28...................... 2,310,710 2,377,747 Series 1997-5, Class A9, 7.310% 11/20/28...................... 5,786,391 6,048,039 Merit Securities Corp., Series 13, Class A4, 7.880% 12/28/33...................... 5,265,000 5,092,464 Nationslink Funding Corp., Series 1999-SL, Class A5, 6.888% 05/10/07...................... 3,120,000 3,445,696 New Century Home Equity Loan Trust, Series 1999-NCA, Class A7, 7.320% 07/25/29...................... 1,471,459 1,551,359 See Accompanying Notes to Financial Statements 113 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA FIXED INCOME SECURITIES FUND (CONT.) AUGUST 31, 2003 PAR VALUE - ----------------------------------------------------------------------------- Oakwood Mortgage Investors, Inc., Series 2000-D, Class A4, 7.400% 07/15/30...................... $ 6,395,000 $ 5,862,900 Salomon Brothers Mortgage Securities VII, Inc., Series 1998-AQ1, Class A5, 7.150% 06/25/28...................... 1,960,000 2,060,210 SLM Student Loan Trust, Series 1997-4, Class A2, 1.645% 10/25/10 (c).................. 5,807,134 5,883,503 ------------- 38,132,320 ------------- COLLATERALIZED MORTGAGE OBLIGATIONS (5.9%) Bear Stearns Asset-Backed Securities, Inc., Series 2002-AC5, Class 2A4, 5.625% 11/25/33...................... 3,188,621 3,241,116 Bear Stearns Mortgage Securities, Inc., Series 1996-2, Class A1, 4.090% 01/28/25 (c).................. 764,340 752,048 Countrywide Home Loans, Inc.: Series 2002-5, Class 2A1, 6.000% 04/25/17...................... 2,376,207 2,420,024 Series 2002-16, Class 1A1, 6.500% 09/25/32...................... 425,623 425,895 Series 2003-49, Class A9, 4.648% 12/19/33...................... 4,770,000 4,704,413 Credit Suisse First Boston Mortgage Securities Corp., Series 2001-11, Class 1A3, 7.000% 06/25/31...................... 578,668 595,455 IMPAC Secured Assets Common Owner Trust, Series 2002-3, Class A2, 5.210% 08/25/32...................... 1,115,103 1,119,639 PNC Mortgage Securities Corp., Series 1998-12, Class 4A4, 6.500% 01/25/29...................... 353,623 357,425 Residential Asset Securitization Trust: Series 2002-A1, Class A4, 6.590% 01/25/30 (c).................. 5,098,000 5,197,235 Series 2002-A5, Class A2, 5.820% 01/25/27...................... 348,531 348,733 Series 2002-A7, Class A2, 5.180% 01/25/27...................... 2,560,869 2,565,426 Residential Funding Mortgage Securities I: Series 2002-S15, Class A2, 5.400% 09/25/23...................... 469,352 477,296 PAR VALUE - ----------------------------------------------------------------------------- Series 2002-S16, Class A7, 5.500% 10/25/17...................... $ 3,149,886 $ 3,225,747 Series 2003-S8, Class A1, 5.000% 05/25/18 (a).................. 4,705,547 4,828,606 Structured Asset Securities Corp., Series 2001-12, Class 1A4, 5.800% 09/25/31...................... 300,412 303,553 ------------- 30,562,611 ------------- COMMERCIAL MORTGAGE-BACKED SECURITIES (0.6%) GMAC Commercial Mortgage Asset Corp., Series 2001-FLAA, Class B1, 1.610% 06/15/13 (b)(c)............... 2,906,136 2,904,432 ------------- Total Other Securitized Loans (Cost of $71,231,301)................ 71,599,363 ------------- SHORT-TERM OBLIGATIONS (11.9%) U.S. TREASURY BILL (1.5%) 1.000% 01/22/04...................... 8,000,000 7,968,222 ------------- REPURCHASE AGREEMENT (10.4%) Repurchase agreement with State Street Bank & Trust Co., dated 08/29/03, due 09/02/03 at 0.860%, collateralized by a U.S. Treasury Note maturing 08/15/07, market value of $55,391,219 (repurchase proceeds $54,308,189)................ 54,303,000 54,303,000 ------------- Total Short-Term Obligations (Cost of $62,271,222)................ 62,271,222 ------------- TOTAL INVESTMENTS (110.5%) (Cost of $568,251,735) (d)........... 575,260,468 ------------- OTHER ASSETS & LIABILITIES, NET (-10.5%)..... (54,669,871) ------------- NET ASSETS (100.0%).......................... $ 520,590,597 ============= NOTES TO SCHEDULE OF INVESTMENTS: (a) This security, or a portion thereof, has been purchased on a delayed delivery basis whereby the terms that are fixed are the purchase price, interest rate and settlement date. The exact quantity purchased may be slightly more or less than the amount shown. (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 August 31, 2003, the value of these securities amounted to $13,632,289, which represents 2.6% of net assets. (c) Variable rate security. The rate reported is the rate in effect at August 31, 2003. (d) Cost for federal income tax purposes is $569,291,420. See Accompanying Notes to Financial Statements 114 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA NATIONAL MUNICIPAL BOND FUND AUGUST 31, 2003 PAR VALUE - ----------------------------------------------------------------------------- MUNICIPAL BONDS (99.4%) ALASKA (3.0%) Industrial Development & Export Authority, Snettisham Hydroelectric, Series 1: Pre-refunded, 5.500% 01/01/08...................... $ 5,000 $ 5,555 Unrefunded, 5.500% 01/01/08...................... 95,000 104,484 Municipal Bond Bank Authority, Series C, 5.500% 09/15/16...................... 100,000 107,780 Palmer Valley Hospital Association, 5.350% 12/01/12...................... 125,000 130,163 State Housing Finance Corp., Veterans Mortgage, Series A2, 6.000% 06/01/15...................... 115,000 120,839 ------------- 468,821 ------------- ARKANSAS (1.6%) Little Rock Waste Disposal Revenue, Series 2002, 5.000% 05/01/16...................... 250,000 257,958 ------------- CALIFORNIA (1.6%) State Department of Water Resource, Power Supply Revenue, Series 2002, 5.000% 05/01/16...................... 250,000 259,177 ------------- COLORADO (0.2%) Housing Finance Authority, Single Family, 4.875% 04/01/07...................... 35,000 36,316 ------------- IDAHO (1.5%) Boise City Housing Authority Revenue, Hobler Place Project, Series 2002, 4.750% 02/01/07...................... 130,000 130,161 Health Facilities Authority, Bingham Memorial Hospital Project, 5.850% 03/01/19...................... 100,000 96,780 Student Loan Fund Marketing Association, Series C, 5.600% 04/01/07...................... 10,000 10,211 ------------- 237,152 ------------- ILLINOIS (12.3%) Broadview Tax Increment Revenue, 4.900% 07/01/06...................... 75,000 76,001 Chicago Housing Authority Capital, Series 2001, 5.375% 07/01/19...................... 250,000 257,145 PAR VALUE - ----------------------------------------------------------------------------- Chicago Motor Fuel Tax Revenue, Series 2003 A, 5.250% 01/01/17...................... $ 250,000 $ 263,412 Chicago Park District Aquarium & Museum, 5.800% 01/01/18...................... 150,000 161,889 Chicago Public Building Community Building Revenue, Chicago School Reform, Series 1999 B, 5.250% 12/01/16...................... 250,000 272,138 Lake County Community Unified School District No. 095, Lake Zurich, Capital Appreciation, Series 2000, (a) 12/01/17......................... 340,000 165,764 Madison & St. Clair Counties School, District No. 010, Collinsville School Building, 5.500% 02/01/12...................... 250,000 274,525 Regional Transportation Authority, Series A, 6.400% 06/01/12...................... 100,000 117,506 State Educational Facilities Authority, DePaul University, Series 2003 C, 5.000% 09/01/18...................... 250,000 254,102 Will County Forest Preservation District, Series 1999 B, (a) 12/01/11......................... 150,000 105,024 ------------- 1,947,506 ------------- INDIANA (4.0%) Board Bank Revenue, Special Program, Hendricks, Series 2002 D, 5.375% 04/01/15...................... 250,000 269,528 Transportation Financial Authority, Airport Facilities, Series A, 5.500% 11/01/17...................... 100,000 105,522 West Lafayette Industrial Building Corp., First Mortgage, Police Station Project, 5.000% 07/15/18...................... 250,000 256,702 ------------- 631,752 ------------- IOWA (2.7%) Finance Authority: Health Care Facilities Revenue, Genesis Medical Center, 6.100% 07/01/15...................... 285,000 315,754 Single Family Mortgage, Series A, 5.800% 07/01/16...................... 105,000 108,826 ------------- 424,580 ------------- See Accompanying Notes to Financial Statements 115 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA NATIONAL MUNICIPAL BOND FUND (CONT.) AUGUST 31, 2003 PAR VALUE - ----------------------------------------------------------------------------- KENTUCKY (0.5%) Louisville & Jefferson County Visitors & Convention Commission, Series 1999 BBB, (a) 12/01/08......................... $ 100,000 $ 78,965 ------------- LOUISIANA (3.5%) Calcasieu Parish School District No. 31, Public School Import, Series 2000, 5.500% 05/01/16...................... 250,000 269,282 State Gas & Fuel Tax Revenue, Series 2002 A, 5.250% 06/01/11...................... 250,000 275,020 ------------- 544,302 ------------- MAINE (0.7%) Regional Waste System Industry Solid Waste Resource Recovery, Series Q, 5.500% 07/01/04...................... 100,000 103,425 ------------- MICHIGAN (4.8%) State Hospital Finance Authority, Ascension Health Credit, Series A: 5.375% 11/15/33...................... 100,000 110,797 6.000% 11/15/19...................... 100,000 117,305 Sturgis Public School District, School Building & Site, 5.500% 05/01/14...................... 250,000 272,320 Warren Downtown Development, Series 2002, 5.000% 10/01/16...................... 250,000 262,405 ------------- 762,827 ------------- MISSISSIPPI (2.4%) Development Bank, Convention Center Project, 6.500% 07/01/13...................... 230,000 272,331 Jones County Hospital, Refunding South Central Regional Medical Center, 4.900% 12/01/04...................... 100,000 103,398 ------------- 375,729 ------------- MONTANA (1.4%) Whitefish Tax Increment, Urban Renewal Revenue, 6.625% 07/15/20...................... 200,000 213,854 ------------- NEVADA (1.7%) State, Colorado River Commission, Hoover Dam Project, Series 2002, 5.375% 10/01/14...................... 250,000 271,065 ------------- PAR VALUE - ----------------------------------------------------------------------------- NEW YORK (3.5%) New York City, AMBAC TCRS: Series 2000, 5.750% 08/01/11...................... $ 250,000 $ 278,882 Series A, 6.000% 05/15/21...................... 250,000 268,495 ------------- 547,377 ------------- NORTH DAKOTA (1.7%) Fargo School District Building Authority Development, Series 2000, 5.500% 05/01/13...................... 250,000 270,600 ------------- OHIO (2.5%) Oak Hills Local School District, 7.200% 12/01/09...................... 100,000 122,021 State Water Development Authority Revenue, Fresh Water, Series 2001 B, 5.500% 12/01/18...................... 250,000 279,087 ------------- 401,108 ------------- OKLAHOMA (1.4%) Okmulgee County, 1st Mortgage, 6.000% 03/01/15...................... 200,000 223,166 ------------- OREGON (14.2%) Bend Municipal Airport Project, Series B, 5.375% 06/01/13...................... 100,000 106,280 Benton County Hospital Facilities Authority Refunding, Samaritan Health Services Project: 4.200% 10/01/05...................... 40,000 41,879 4.600% 10/01/09...................... 40,000 41,975 Clackamas County: Hospital Facility Authority, Gross-Willamette Falls Hospital Project, 5.500% 04/01/22...................... 250,000 262,578 Limited Tax Assessment, 6.250% 05/01/15...................... 200,000 200,768 Damascus Water District, Certificates of Participation, 5.250% 03/01/19...................... 100,000 101,957 Deschutes County Hospital Facilities Authority, Cascade Health Services, Inc., Series 2002, 5.600% 01/01/27...................... 100,000 101,471 Eugene Trojan Nuclear Project, 5.900% 09/01/09...................... 30,000 30,080 See Accompanying Notes to Financial Statements 116 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- PAR VALUE - ----------------------------------------------------------------------------- Health Sciences University, Capital Appreciation, Series 1996 A, (a) 07/01/16......................... $ 100,000 $ 54,369 Hillsboro Hospital Facility Authority Refunding, Tuality Healthcare, 5.250% 10/01/04...................... 100,000 103,134 Klamath Community College District: 4.700% 04/01/10...................... 55,000 57,791 4.800% 04/01/11...................... 25,000 26,056 Lebanon Urban Renewal Agency, 5.625% 06/01/19...................... 100,000 102,802 Port of St. Helens Pollution Control, Portland General Electric Co., Series B, 4.800% 06/01/10...................... 105,000 90,082 Redmond Urban Renewal Agency, Downtown Area B, 5.650% 06/01/13...................... 100,000 102,349 Salem Hospital Facilities Authority, Capital Manor, Inc., Series 1994, 7.500% 12/01/24...................... 150,000 158,087 School Boards Association, Flexfund Financing Program, Series E, 5.500% 06/01/05...................... 100,000 100,166 State Housing & Community Services Department, Single Family Mortgage Program, Series B, 6.000% 07/01/12...................... 30,000 31,418 State Veterans Welfare, Series 75, 5.875% 10/01/18...................... 20,000 20,674 Sunriver Library County Service District, 5.750% 06/01/04...................... 20,000 20,668 Washington & Clackamas Counties School District No. 23J Tigard, Series 2000, (a) 06/15/21......................... 300,000 116,148 Washington County Housing Authority: Affordable Housing Pool, Series A, 6.000% 07/01/20...................... 100,000 96,303 Multi-Family Tualatin Meadows, 5.900% 11/01/18...................... 100,000 104,336 West Linn Oregon Water System, 6.000% 10/01/20...................... 165,000 172,219 ------------- 2,243,590 ------------- SOUTH CAROLINA (1.3%) Charleston County School District, Series 2001, 5.000% 02/01/18...................... 200,000 207,104 ------------- PAR VALUE - ----------------------------------------------------------------------------- SOUTH DAKOTA (1.0%) State Building Authority, Lease Capital Appreciation, Series 1996 A, (a) 12/01/13......................... $ 250,000 $ 157,070 ------------- TENNESSEE (4.0%) Lawrenceburg Public Building Authority, Electric System Public Works, Series C, 5.500% 07/01/16...................... 295,000 318,128 Metropolitan Government Nashville, Series 2002 A, 5.125% 10/01/13...................... 285,000 307,258 ------------- 625,386 ------------- TEXAS (9.0%) Amarillo Health Facilities Corp., Baptist St. Anthony's Hospital Corp., 5.500% 01/01/13...................... 100,000 108,927 Cleburne Capital Appreciation Certificates of Obligation, Series 1998, (a) 02/15/17......................... 450,000 219,861 Harris County Health Facilities, de Teco Project, Series 1999 B, 5.700% 02/15/15...................... 150,000 163,689 Laredo Sports Venue Sales Tax, 5.750% 03/15/13...................... 200,000 220,188 Lubbock Health Facility Development, St. Joseph's Health System, 5.250% 07/01/12...................... 150,000 155,722 Magnolia Independent School District, 5.250% 08/15/17...................... 280,000 295,845 North Texas Municipal Water District, Texas Water System Revenue, 5.000% 09/01/14...................... 250,000 262,452 ------------- 1,426,684 ------------- WASHINGTON (14.5%) Grant County Public Hospital, District No. 3, Columbia Basin Hospital, 5.250% 12/01/18...................... 170,000 170,925 Jefferson County, Public Utility District No. 1, Water & Sewer: 5.250% 05/01/16...................... 50,000 51,412 5.250% 05/01/17...................... 50,000 51,162 King County Public Hospital District No. 4, Snoqualmie Valley Hospital, 7.000% 12/01/11...................... 150,000 157,325 See Accompanying Notes to Financial Statements 117 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA NATIONAL MUNICIPAL BOND FUND (CONT.) AUGUST 31, 2003 PAR VALUE - ----------------------------------------------------------------------------- Pierce County Housing Authority, 5.400% 12/01/13...................... $ 100,000 $ 97,009 Port of Grays Harbor, 6.375% 12/01/14...................... 150,000 164,614 Seattle Municipal Light & Power: 5.000% 07/01/13...................... 235,000 246,797 6.000% 10/01/16...................... 150,000 167,973 Shelton Water & Sewer, 5.250% 12/01/18...................... 50,000 51,409 State Certificates of Participation, Department of General Administration, 5.400% 07/01/13...................... 100,000 105,589 State Health Care Facilities Authority Revenue, Grays Harbor Community Hospital, Series 1996, 5.700% 07/01/16...................... 200,000 212,950 State Public Power Supply System: Nuclear Project No. 1 Revenue, Series 1997 B, 5.125% 07/01/14...................... 300,000 313,185 Nuclear Project No. 2 Refunding, Series A, 5.000% 07/01/11...................... 50,000 53,094 Nuclear Project No. 3 Revenue, Capital Appreciation, Series 1989 B, (a) 07/01/12......................... 145,000 96,134 Tacoma Solid Waste Utilities: Pre-refunded, Series 1997 B, 6.000% 12/01/09...................... 15,000 17,488 Unrefunded, Series 1997 B, 6.000% 12/01/09...................... 85,000 98,518 Thurston County School District No. 401, Rochester, 4.800% 12/01/07...................... 55,000 55,292 Toppenish, 4.600% 12/01/06...................... 65,000 69,768 University of Washington Educational Research Properties Lease, 4225 Roosevelt Project, Series A, 5.375% 06/01/29...................... 100,000 94,988 Yakima County School District No. 119 Selah, 5.000% 12/01/06...................... 10,000 10,950 ------------- 2,286,582 ------------- PAR VALUE - ----------------------------------------------------------------------------- WISCONSIN (3.7%) Door County, Corporate Purpose, Series 2002 A, 5.000% 09/01/13...................... $ 300,000 $ 317,655 Marshall School District, Series 2002 A, 5.000% 03/01/14...................... 250,000 263,300 ------------- 580,955 ------------- WYOMING (0.7%) Municipal Power Agency, Power Supply Refunding, Series 1998, 5.250% 01/01/11...................... 100,000 107,619 ------------- Total Municipal Bonds (Cost of $15,266,214)................ 15,690,670 ------------- TOTAL INVESTMENTS (99.4%) (Cost of $15,266,214) (b)............ 15,690,670 ------------- OTHER ASSETS & LIABILITIES, NET (0.6%)....... 92,872 ------------- NET ASSETS (100.0%).......................... $ 15,783,542 ============= NOTES TO SCHEDULE OF INVESTMENTS: (a) Zero coupon bond. (b) Cost for federal income tax purposes is $15,262,266. Columbia National Municipal Bond Fund holds investments that are insured by private insurers who guarantee the payment of principal and interest in the event of default. At August 31, 2003, investments in these securities represented 61.8% of holdings. ACRONYM NAME ------- ---- AMBAC American Municipal Bond Assurance Corp. TCRS Transferable Custodial Receipts COLUMBIA OREGON MUNICIPAL BOND FUND AUGUST 31, 2003 PAR VALUE - ----------------------------------------------------------------------------- GENERAL OBLIGATION BONDS (37.6%) STATE OF OREGON GENERAL OBLIGATIONS (5.1%) Board of Higher Education: 4.875% 08/01/19...................... $ 1,000,000 $ 1,016,010 Series A: 5.250% 08/01/14...................... 1,480,000 1,587,922 5.250% 08/01/16...................... 5,330,000 5,663,232 Deferred Interest, Series A: (a) 08/01/14......................... 490,000 297,430 (a) 08/01/17......................... 1,050,000 532,035 See Accompanying Notes to Financial Statements 118 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- PAR VALUE - ----------------------------------------------------------------------------- Elderly & Disabled Housing Refunding, Series B: 4.950% 08/01/20...................... $ 1,000,000 $ 1,011,700 6.250% 08/01/13...................... 55,000 55,632 State of Oregon, Series A, 5.250% 10/15/15...................... 1,735,000 1,868,161 Veteran's Welfare: 5.850% 10/01/15...................... 635,000 661,683 7.300% 07/01/08...................... 1,170,000 1,406,317 8.000% 01/01/08...................... 1,275,000 1,541,628 8.000% 07/01/08...................... 580,000 714,479 9.200% 04/01/07...................... 2,390,000 2,934,299 9.200% 10/01/08...................... 385,000 499,260 Series 80 A, 5.700% 10/01/32...................... 5,000,000 5,094,950 ------------- 24,884,738 ------------- GENERAL OBLIGATIONS (18.6%) Aurora, 5.600% 06/01/24...................... 1,205,000 1,222,870 Bend Municipal Airport Project, Series B (AMT), 5.375% 06/01/13...................... 150,000 159,420 Canyonville South Umpqua Rural Fire District, 5.400% 07/01/31...................... 610,000 615,386 Clackamas County: Lake Oswego Series: 5.375% 06/01/15...................... 2,450,000 2,633,676 5.375% 06/01/16...................... 1,295,000 1,382,387 5.375% 06/01/17...................... 2,535,000 2,702,614 School District No. 62C, 5.375% 06/15/17...................... 4,000,000 4,255,000 School District No. 086, 6.000% 06/15/16...................... 2,350,000 2,639,943 School District No. 108, 5.375% 06/15/15...................... 1,055,000 1,140,255 Clackamas & Washington Counties, School District No. 003JT, (a) 06/15/17......................... 6,000,000 2,950,740 Coos Bay, 4.900% 09/01/07...................... 2,390,000 2,605,674 Crook County School District, 5.000% 02/01/14...................... 2,860,000 3,031,571 Eugene Public Safety Facilities: 5.500% 06/01/10...................... 850,000 913,614 5.625% 06/01/13...................... 1,295,000 1,392,967 Jackson County: School District No. 4, Phoenix-Talent, 5.500% 06/15/16...................... 1,000,000 1,078,010 PAR VALUE - ----------------------------------------------------------------------------- School District No. 6, Central Point, 6.000% 06/15/09...................... $ 1,090,000 $ 1,254,067 School District No. 9, Eagle Point, 5.625% 06/15/15...................... 1,920,000 2,100,134 Lane County, School District No. 4J Eugene, Refunding: 5.000% 07/01/12...................... 2,470,000 2,665,525 5.250% 07/01/13...................... 1,000,000 1,098,570 Metro Washington Park Zoo, Series A, 5.300% 01/15/11...................... 1,000,000 1,072,700 Multnomah-Clackamas Counties, School District No. 10JT, Gresham, 5.250% 06/01/17...................... 1,620,000 1,664,356 Multnomah County, Series A, 5.500% 04/01/19...................... 2,395,000 2,540,927 Portland Community College District, Series A: 5.375% 06/01/14...................... 1,925,000 2,081,214 5.375% 06/01/16...................... 2,705,000 2,904,088 5.375% 06/01/17...................... 2,540,000 2,709,672 Portland Limited Tax: Series A: 3.400% 06/01/13...................... 5,640,000 5,260,372 4.900% 04/01/12...................... 1,430,000 1,495,494 5.750% 06/01/14...................... 700,000 714,707 Series B: (a) 06/01/12......................... 1,750,000 1,194,008 (a) 06/01/13......................... 1,500,000 968,610 (a) 06/01/14......................... 1,000,000 611,640 (a) 06/01/16......................... 3,500,000 1,910,475 (a) 06/01/18......................... 4,000,000 1,929,240 (a) 06/01/19......................... 4,000,000 1,810,960 (a) 06/01/20......................... 4,000,000 1,685,840 Portland Parks, Series A, Refunding, 5.000% 06/01/15...................... 3,950,000 4,126,328 Salem-Keizer School District No. 24J, 5.000% 06/01/19...................... 3,500,000 3,599,120 Washington & Clackamas Counties: Deferred Interest, Series A, (a) 06/01/10......................... 1,520,000 1,161,918 School District No. 23J, Tigard, (a) 06/15/18......................... 2,700,000 1,286,658 Washington County: 5.500% 06/01/16...................... 2,785,000 2,991,814 Criminal Justice Facilities, Refunding, 5.000% 12/01/10...................... 1,400,000 1,511,832 School District No. 48J, Beaverton: 5.125% 01/01/14...................... 2,000,000 2,113,000 5.125% 01/01/17...................... 1,820,000 1,889,069 5.125% 01/01/18...................... 2,260,000 2,330,105 See Accompanying Notes to Financial Statements 119 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA OREGON MUNICIPAL BOND FUND (CONT.) AUGUST 31, 2003 PAR VALUE - ----------------------------------------------------------------------------- Washington, Multnomah & Yamhill Counties School District No. 1J: 5.000% 06/01/13...................... $ 1,500,000 $ 1,596,030 5.000% 11/01/13...................... 1,375,000 1,489,455 5.250% 06/01/14...................... 500,000 536,695 ------------- 91,028,750 ------------- INSURED GENERAL OBLIGATIONS (13.9%) Benton & Linn Counties School District No. 509J, Corvallis, 5.000% 06/01/17...................... 2,665,000 2,782,766 Clackamas Community College: 5.250% 06/15/15...................... 1,500,000 1,608,855 5.250% 06/15/18...................... 1,560,000 1,638,218 Clackamas County, School District No. 12, North Clackamas: 5.250% 06/01/11...................... 1,000,000 1,079,280 5.250% 06/01/15...................... 2,750,000 2,902,405 Columbia County, School District No. 502, Deferred Interest: (a) 06/01/12......................... 1,530,000 1,044,806 (a) 06/01/13......................... 1,685,000 1,094,323 (a) 06/01/14......................... 1,025,000 629,576 Coos County, School District No. 13, North Bend, 5.500% 06/15/15...................... 1,765,000 1,939,241 Deschutes County, School District No. 1, Series A, 5.500% 06/15/18...................... 1,000,000 1,065,740 Jefferson County, School District No. 509J, Madras School District, 5.250% 06/15/18...................... 1,075,000 1,134,727 Josephine County, School District No. 7, Grants Pass, 5.700% 06/01/13...................... 2,000,000 2,185,220 Lane County, School District No. 19, Springfield Refunding: 6.000% 10/15/12...................... 1,740,000 2,020,105 6.000% 10/15/14...................... 1,310,000 1,518,513 Lincoln County School District, 5.600% 06/15/10...................... 3,480,000 3,874,180 Linn Benton Community College: (a) 06/15/13......................... 1,000,000 648,340 (a) 06/15/14......................... 1,000,000 611,850 Linn County, Community School District No. 9, Lebanon: (a) 06/15/15......................... 710,000 738,563 (a) 06/15/21......................... 2,000,000 2,033,280 PAR VALUE - ----------------------------------------------------------------------------- Marion County, School District No. 103C, Woodburn, Series B: (a) 11/01/09......................... $ 2,500,000 $ 2,012,225 (a) 11/01/11......................... 2,210,000 1,579,222 Multnomah-Clackamas Counties, Centennial School District No. 28-302: 5.375% 06/15/16...................... 2,055,000 2,208,324 5.375% 06/15/17...................... 2,280,000 2,434,516 5.375% 06/15/18...................... 2,490,000 2,643,508 Multnomah County: School District No. 7, Reynolds: 5.000% 06/15/18...................... 1,000,000 1,024,590 5.625% 06/15/14...................... 2,670,000 2,926,080 5.625% 06/15/17...................... 1,000,000 1,086,200 School District No. 40, 5.000% 12/01/14...................... 1,790,000 1,884,261 Series A MBIA-IBC (AMT), 5.500% 04/01/18...................... 2,010,000 2,144,288 Northern Oregon Corrections: 5.250% 09/15/12...................... 1,000,000 1,068,650 5.300% 09/15/13...................... 1,000,000 1,067,410 Salem-Keizer School District No. 24J: 5.000% 06/01/15...................... 1,000,000 1,044,840 5.000% 06/01/16...................... 1,380,000 1,436,138 Washington & Clackamas Counties, School District No. 23J, Tigard, 5.375% 06/15/17...................... 1,500,000 1,612,635 Washington County: School District No. 15, Forest Grove: 5.250% 06/01/10...................... 1,000,000 1,109,320 5.375% 06/15/13...................... 2,070,000 2,254,541 5.375% 06/15/15...................... 2,515,000 2,726,964 School District No. 48J, Beaverton: 5.100% 06/01/12...................... 500,000 528,890 5.250% 08/01/10...................... 1,150,000 1,247,210 School District No. 088J, Sherwood, Unrefunded, 6.100% 06/01/12...................... 185,000 200,272 Yamhill County: School District No. 029J, 5.250% 06/15/16...................... 2,535,000 2,711,994 School District No. 40, 6.000% 06/01/09...................... 500,000 576,785 ------------- 68,078,851 ------------- Total General Obligation Bonds (Cost of $179,365,384)............... 183,992,339 ------------- See Accompanying Notes to Financial Statements 120 SCHEDULE OF INVESTMENTS - ----------------------------------------------------------------------------- PAR VALUE - ----------------------------------------------------------------------------- REVENUE BONDS (55.1%) OREGON REVENUE (35.0%) Albany Hospital Facility Authority, Mennonite Home, 5.625% 10/01/17...................... $ 635,000 $ 613,302 Benton County Hospital Facilities Authority, Samaritan Health Services Project, Refunding: 4.400% 10/01/07...................... 220,000 231,350 4.800% 10/01/11...................... 245,000 256,689 5.200% 10/01/17...................... 2,255,000 2,287,968 Clackamas County Hospital Facility Authority: Kaiser Permanente, Series A, 5.375% 04/01/14...................... 7,135,000 7,462,996 Legacy Health System: 4.600% 05/01/10...................... 885,000 925,648 5.000% 02/15/15...................... 1,510,000 1,552,099 5.000% 02/15/16...................... 1,010,000 1,028,018 5.500% 02/15/13...................... 5,450,000 5,848,231 5.500% 02/15/14...................... 2,385,000 2,534,659 5.750% 05/01/12...................... 2,000,000 2,237,160 Legacy Health System, Refunding: 5.250% 05/01/21...................... 4,500,000 4,550,940 5.750% 05/01/16...................... 1,500,000 1,607,970 Odd Fellows Home, Series A, Refunding, 5.875% 09/15/21...................... 1,165,000 1,120,078 Robison Jewish Home Project, 6.250% 10/01/21...................... 1,650,000 1,667,226 Willamette Falls Hospital Project: 5.750% 04/01/14...................... 1,005,000 1,025,321 6.000% 04/01/19...................... 1,750,000 1,757,157 Willamette View, Inc. Project: 6.000% 11/01/08...................... 670,000 682,837 Series A, 6.850% 11/01/15...................... 1,580,000 1,685,544 Clackamas County Housing Authority, Multi-Family Housing, Easton Ridge, Series A, 5.800% 12/01/16...................... 2,255,000 2,324,499 Clatsop Care Center Health District, Senior Housing, 6.875% 08/01/28...................... 500,000 506,240 Deschutes County Hospital Facilities Authority, Cascade Health Services, Inc.: 5.500% 01/01/22...................... 2,000,000 2,026,860 5.600% 01/01/27...................... 5,550,000 5,631,640 5.600% 01/01/32...................... 2,000,000 2,026,720 PAR VALUE - ----------------------------------------------------------------------------- Deschutes Valley Water District, 5.875% 09/01/05...................... $ 2,315,000 $ 2,492,607 Eugene Airport, Refunding (AMT): 5.650% 05/01/06...................... 325,000 348,212 5.650% 05/01/07...................... 555,000 599,972 5.700% 05/01/08...................... 515,000 558,492 Hillsboro Hospital Facility Authority, Tuality Healthcare, 5.750% 10/01/12...................... 3,810,000 3,914,356 Lebanon Wastewater, Refunding, 5.750% 06/01/11...................... 1,225,000 1,255,257 Multnomah County Educational Facilities, University of Portland Project: 5.700% 04/01/15...................... 1,000,000 1,062,850 6.000% 04/01/20...................... 500,000 521,950 6.000% 04/01/25...................... 500,000 522,800 Myrtle Point Water, 6.000% 12/01/20...................... 510,000 532,736 North Clackamas Parks & Recreation District Facilities, 5.700% 04/01/13...................... 2,920,000 3,267,334 Northern Wasco County, People's Utility District Electric: (a) 02/01/06......................... 610,000 553,758 (a) 02/01/07......................... 585,000 494,091 (a) 02/01/08......................... 610,000 479,545 (a) 02/01/11......................... 500,000 316,110 Oregon State Department of Transportation, Highway User Tax, Series A: 5.125% 11/15/26...................... 555,000 558,513 5.500% 11/15/16...................... 2,500,000 2,740,550 Oregon State Economic Development, Dove Lewis 24 Hour Emergency Animal Hospital, 7.000% 12/01/19...................... 1,425,000 1,497,703 Oregon State Health, Housing, Educational & Cultural Facilities Authority: Authority/Aquarium: 4.750% 10/01/08...................... 1,550,000 325,500 4.900% 10/01/09...................... 670,000 140,700 Goodwill Industries Lane County, Series A, 6.650% 11/15/22...................... 3,955,000 3,987,312 Linfield College Project, Series A: 4.650% 10/01/09...................... 555,000 577,222 5.500% 10/01/18...................... 1,000,000 1,006,860 Reed College Project, Series A, 5.300% 07/01/11...................... 500,000 532,210 See Accompanying Notes to Financial Statements 121 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA OREGON MUNICIPAL BOND FUND (CONT.) AUGUST 31, 2003 PAR VALUE - ----------------------------------------------------------------------------- St. Anthony's Village Housing, Series A (AMT), 7.250% 06/01/28...................... $ 1,380,000 $ 1,393,883 Oregon State Housing & Community Services: Department of Housing, Finance Assisted Insured Multi-Unit B, 6.800% 07/01/13...................... 7,820,000 7,836,657 Department Mortgage Multi-Family Housing, Series B (AMT), 6.000% 07/01/31...................... 6,935,000 7,146,934 Department Mortgage Single Family Program: Series A, 4.850% 07/01/10...................... 250,000 262,303 Series A (AMT), 6.200% 07/01/27...................... 2,250,000 2,322,855 Series B (AMT), 5.250% 07/01/30...................... 645,000 636,725 Series D, 6.700% 07/01/13...................... 1,000,000 1,007,600 Series E: 5.375% 07/01/21...................... 3,770,000 3,867,718 5.700% 07/01/12...................... 955,000 1,002,931 5.800% 07/01/14...................... 845,000 869,209 6.000% 07/01/20...................... 2,365,000 2,479,939 Series F (AMT), 5.650% 07/01/28...................... 1,155,000 1,170,893 Series F MBIA-IBC (AMT), 5.650% 07/01/28...................... 875,000 887,040 Series G (AMT), 5.700% 07/01/32...................... 1,115,000 1,128,871 Series H (AMT), 5.500% 07/01/17...................... 1,660,000 1,689,631 Series J, 5.150% 07/01/24...................... 2,840,000 2,811,174 Series L, 6.050% 07/01/20...................... 325,000 340,031 Series L (AMT), 5.900% 07/01/31...................... 3,885,000 3,964,642 Series M (AMT), 5.800% 07/01/12...................... 640,000 670,816 Series Q: 4.700% 07/01/15...................... 820,000 824,756 4.900% 07/01/17...................... 805,000 795,396 PAR VALUE - ----------------------------------------------------------------------------- Mountain Shadows Apts. B-1, 6.250% 12/01/05...................... $ 4,000,000 $ 3,687,280 Oregon State Housing Finance, 5.800% 07/01/09...................... 215,000 215,144 Port Morrow, 6.700% 06/01/20...................... 2,000,000 2,029,180 Port of St. Helens: 5.600% 08/01/14...................... 315,000 321,017 5.750% 08/01/19...................... 425,000 433,509 Port of St. Helens Pollution Control, Portland General Electric Co: Series A, 4.800% 04/01/10...................... 5,195,000 4,458,453 Series B, 4.800% 06/01/10...................... 3,500,000 3,002,720 Portland Housing Authority: Multi-Family Housing Senior Lien Civic Apartments, Series A, 5.600% 01/01/18...................... 1,240,000 1,276,282 Pool Housing, Series A, Refunding, 4.500% 01/01/09...................... 660,000 688,195 Portland Sewer System Revenue, Series A, Refunding, 5.000% 06/01/12...................... 4,835,000 5,155,222 Powell Valley Water District, 6.000% 02/01/15...................... 620,000 650,250 Prineville Sewer First Lien, 6.500% 07/01/04...................... 140,000 145,419 Reedsport Water, 7.000% 10/01/14...................... 520,000 535,293 Salem Hospital Facility Authority: 5.000% 08/15/18...................... 2,000,000 1,994,940 5.250% 08/15/14...................... 4,860,000 5,119,816 Sheridan Water Revenue: 6.200% 05/01/15...................... 625,000 667,663 6.450% 05/01/20...................... 520,000 554,590 Sheridan Water Revenue, Refunding, 5.350% 04/01/18...................... 300,000 308,055 South Fork Water Board First Lien, 5.450% 02/01/14...................... 1,300,000 1,319,357 State of Oregon French American International School Project, Series A, 6.250% 04/01/27...................... 5,370,000 5,485,616 Umatilla County, Hospital Facility Authority, Catholic Health Initiatives, Series A: 5.750% 12/01/20...................... 530,000 547,691 6.000% 12/01/30...................... 4,825,000 5,052,788 See Accompanying Notes to Financial Statements 122 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- PAR VALUE - ----------------------------------------------------------------------------- Washington County Housing Authority: Affordable Housing, Series A, 6.000% 07/01/20...................... $ 2,000,000 $ 1,926,060 Affordable Housing Pool, Series A: 5.750% 07/01/23...................... 1,000,000 982,510 6.000% 07/01/23...................... 1,000,000 954,240 Multi-Family Bethany Meadows Project (AMT), 6.250% 08/01/10...................... 695,000 696,501 ------------- 171,195,587 ------------- INSURED REVENUE (20.1%) Clackamas County, Hospital Facilities Authority, Legacy Health System, MBIA IBC, 5.500% 02/15/13...................... 495,000 537,511 Deschutes County, Certificates of Participation, Series A, 5.050% 06/01/17...................... 420,000 429,740 Emerald Peoples Utilities District: 7.350% 11/01/10...................... 2,160,000 2,679,718 7.350% 11/01/11...................... 2,000,000 2,494,600 7.350% 11/01/12...................... 2,490,000 3,127,639 7.350% 11/01/13...................... 2,675,000 3,385,293 Series A, 5.250% 11/01/20...................... 605,000 631,832 Eugene Electric Utilities System, Series B, Refunding, 5.250% 08/01/13...................... 1,040,000 1,125,322 Guam Housing Corp., Single Family Mortgage-Backed Securities, Series A (AMT), 5.750% 09/01/31...................... 175,000 180,703 Medford Hospital Facilities Authority, Asante Health System, Series A: 5.250% 08/15/10...................... 1,500,000 1,643,355 5.250% 08/15/11...................... 800,000 865,776 Multnomah County Educational Facilities Authority, University of Portland Project, Refunding: 5.000% 04/01/11...................... 1,150,000 1,231,811 5.750% 04/01/10...................... 2,000,000 2,210,960 Ontario Catholic Health Holy Rosary Medical Center, 5.500% 11/15/12...................... 1,500,000 1,619,925 Oregon State Department of Administrative Services: Certificates of Participation: Series A, 5.300% 05/01/08...................... 750,000 826,755 PAR VALUE - ----------------------------------------------------------------------------- Lottery Education Project: Series A: 5.000% 04/01/14...................... $ 2,705,000 $ 2,853,288 5.000% 04/01/14...................... 1,830,000 1,957,789 5.250% 04/01/11...................... 4,000,000 4,341,440 5.250% 04/01/13...................... 1,600,000 1,713,152 Series B, 5.250% 04/01/15...................... 1,315,000 1,399,844 Department of Administrative Services, Certificates of Participation, Refunding: Series A: 4.500% 05/01/12...................... 1,020,000 1,056,077 5.000% 05/01/13...................... 4,240,000 4,477,652 5.000% 05/01/14...................... 1,000,000 1,048,890 Series B: 5.250% 05/01/10...................... 840,000 930,812 5.250% 05/01/11...................... 2,000,000 2,205,300 Series C: 5.250% 11/01/15...................... 1,000,000 1,075,760 5.250% 11/01/17...................... 5,000,000 5,307,800 Oregon State Economic Community Development Department, Series A, 5.375% 01/01/11...................... 1,105,000 1,200,870 Oregon State Health, Housing, Educational & Cultural Facilities Authority: Lewis & Clark College, 6.000% 10/01/13...................... 965,000 1,024,618 Reed College Project, Series A, 5.100% 07/01/10...................... 900,000 984,438 Oregon State Health Sciences University, Series A: (a) 07/01/09......................... 1,530,000 1,245,956 (a) 07/01/12......................... 1,315,000 898,618 (a) 07/01/14......................... 2,550,000 1,557,055 (a) 07/01/15......................... 4,325,000 2,497,298 (a) 07/01/21......................... 12,515,000 4,884,604 5.250% 07/01/22...................... 1,000,000 1,031,430 Oregon State Housing & Community Services Department, Single Family Mortgage Project, Series J (AMT), 5.750% 07/01/29...................... 6,875,000 6,989,881 Port of Portland International Airport: Series 11 (AMT), 5.625% 07/01/13...................... 1,000,000 1,061,930 Series 12B, Refunding, 5.250% 07/01/12...................... 1,000,000 1,069,690 Series 12C (AMT): 4.750% 07/01/10...................... 2,900,000 3,018,349 5.000% 07/01/13...................... 1,000,000 1,021,520 5.000% 07/01/14...................... 1,750,000 1,786,697 See Accompanying Notes to Financial Statements 123 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA OREGON MUNICIPAL BOND FUND (CONT.) AUGUST 31, 2003 PAR VALUE - ----------------------------------------------------------------------------- Series D, 5.250% 07/01/12...................... $ 1,750,000 $ 1,852,900 Portland Arena Gas Tax: (a) 06/01/16......................... 1,100,000 526,042 (a) 07/01/17......................... 2,320,000 1,035,416 Portland Gas Tax, Series A, 5.800% 06/01/16...................... 1,640,000 1,774,316 Portland Housing Authority, Multi-Family Housing, Lovejoy Station Apartments Project (AMT), 5.900% 07/01/23...................... 1,000,000 1,043,900 Salem Water & Sewer, 5.300% 06/01/15...................... 1,500,000 1,600,380 Tri-County Metropolitan Transportation District: Series 1, 5.400% 06/01/19...................... 4,200,000 4,290,510 Series A, 5.000% 09/01/15...................... 1,000,000 1,060,040 Tualatin Hills Park & Recreation District, 5.750% 03/01/14...................... 990,000 1,119,690 Washington County Housing Authority, Multi-Family Housing, Tualatin Meadows (AMT), 5.900% 11/01/18...................... 995,000 1,038,143 Washington County Unified Sewer Agency, 5.500% 10/01/16...................... 1,250,000 1,341,438 ------------- 98,314,473 ------------- Total Revenue Bonds (Cost of $263,905,006)............... 269,510,060 ------------- PRE-REFUNDED BOND (0.5%) Oregon State City Sewer, 6.500% 10/01/07...................... 500,000 543,805 Virgin Islands Public Finance Authority, Unrefunded Balance, Series A, 7.300% 10/01/18...................... 1,185,000 1,523,436 ------------- Total Pre-Refunded Bonds (Cost of $1,885,649)................. 2,067,241 ------------- OTHER BONDS (4.8%) Hood River Urban Renewal Agency, 6.250% 12/15/11...................... 1,250,000 1,350,162 PAR VALUE - ----------------------------------------------------------------------------- Lebanon Special Obligation, Lease Water, Refunding, 5.400% 10/01/13...................... $ 755,000 $ 764,339 Lebanon Urban Renewal Agency: 5.625% 06/01/19...................... 1,000,000 1,028,020 5.750% 06/01/15...................... 1,120,000 1,149,310 6.000% 06/01/20...................... 1,580,000 1,628,143 Medford Urban Renewal, 5.875% 09/01/10...................... 500,000 531,990 Multnomah County, Certificates of Participation, 4.550% 08/01/10...................... 1,000,000 1,057,380 Portland Airport Way Urban Renewal & Redevelopment, Convention Center, Series A: 5.750% 06/15/17...................... 1,500,000 1,652,760 5.750% 06/15/18...................... 2,050,000 2,247,292 Portland River District Urban Renewal & Redevelopment, Series A, 5.000% 06/15/17...................... 1,500,000 1,566,510 Portland Urban Renewal & Redevelopment, South Park Blocks, Series A: 5.750% 06/15/17...................... 2,065,000 2,275,300 5.750% 06/15/19...................... 2,580,000 2,828,299 Redmond Urban Renewal Agency: Downtown Area B: 5.650% 06/01/13...................... 720,000 736,913 5.850% 06/01/19...................... 785,000 804,099 South Airport Industrial Area A, Refunding, 5.700% 06/01/19...................... 650,000 652,100 Seaside Urban Renewal Agency, Greater Seaside Urban Renewal, 5.250% 06/01/15...................... 1,000,000 1,020,860 Veneta Urban Renewal Agency: 5.375% 02/15/16...................... 700,000 718,767 5.625% 06/15/21...................... 1,100,000 1,114,267 Wilsonville Limited Tax Improvement, 5.000% 12/01/10...................... 445,000 447,096 ------------- Total Other Bonds (Cost of $22,611,404)................ 23,573,607 ------------- U.S. TERRITORIES BONDS (0.2%) Puerto Rico Housing Finance Corp., Multi-Family Mortgage Portfolio A-1, 7.500% 04/01/22 (Cost of $967,912)... 970,000 972,250 ------------- See Accompanying Notes to Financial Statements 124 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- SHARES VALUE - ----------------------------------------------------------------------------- TAX EXEMPT MONEY MARKET INVESTMENT (0.9%) SEI Tax Exempt Trust (Cost of $4,585,926)................. 4,585,926 $ 4,585,926 ------------- TOTAL INVESTMENTS (99.1%) (Cost of $473,321,281) (b) .......... 484,701,423 ------------- OTHER ASSETS & LIABILITIES, NET (0.9%)....... 4,562,849 ------------- NET ASSETS (100.0%).......................... $ 489,264,272 ============= NOTES TO SCHEDULE OF INVESTMENTS: (a) Zero coupon bond. (b) Cost for federal income tax purposes is $473,197,829. Columbia Oregon Municipal Bond Fund holds investments that are insured by private insurers who guarantee the payment of principal and interest in the event of default. At August 31, 2003, investments in these securities represented 37.2% of holdings. ACRONYM NAME ------- ---- AMT Alternative Minimum Tax IBC Insured Bond Certificates MBIA Municipal Bond Insurance Association COLUMBIA HIGH YIELD FUND AUGUST 31, 2003 PAR VALUE - ----------------------------------------------------------------------------- CORPORATE NOTES & BONDS (88.9%) AEROSPACE & DEFENSE (3.4%) K&F Industries, 9.625% 12/15/10...................... $ 9,255,000 $ 10,041,675 L-3 Communications Corp., 7.625% 06/15/12...................... 26,325,000 27,378,000 TD Funding Corp., Senior Subordinated Notes, 8.375% 07/15/11 (a).................. 15,275,000 15,962,375 ------------- 53,382,050 ------------- AMUSEMENT & RECREATION (2.2%) Cinemark USA, Inc., 9.000% 02/01/13...................... 21,490,000 22,886,850 Speedway Motorsports, Inc., 6.750% 06/01/13 (a).................. 12,910,000 12,780,900 ------------- 35,667,750 ------------- AUTOMOTIVE & AUTO PARTS (2.8%) American Axle & Manufacturing, Inc., Senior Subordinated Notes, 9.750% 03/01/09...................... 18,175,000 19,538,125 Lear Corp., Series B: 7.960% 05/15/05...................... 5,350,000 5,737,875 8.110% 05/15/09...................... 17,175,000 19,193,063 ------------- 44,469,063 ------------- PAR VALUE - ----------------------------------------------------------------------------- BROADCASTING (2.2%) Lin Television Corp., 6.500% 05/15/13 (a).................. $14,150,000 $ 13,725,500 Sinclair Broadcasting Group, Inc.: 8.000% 03/15/12...................... 12,710,000 13,250,175 8.750% 12/15/11...................... 6,710,000 7,230,025 ------------- 34,205,700 ------------- CABLE TV (5.8%) British Sky Broadcasting: 6.875% 02/23/09...................... 5,000,000 5,375,000 7.300% 10/15/06...................... 7,425,000 8,111,813 CSC Holdings, Inc.: Senior Notes, 7.875% 12/15/07...................... 3,600,000 3,672,000 Senior Subordinated Debentures, 9.875% 02/15/13...................... 11,820,000 12,351,900 Series B, 8.125% 08/15/09...................... 1,550,000 1,600,375 DirecTV Holding LLC, 8.375% 03/15/13 (a).................. 20,305,000 22,183,212 Mediacom LLC: 9.500% 01/15/13...................... 5,800,000 5,858,000 Series B, 8.500% 04/15/08...................... 6,500,000 6,483,750 Rogers Cable, Inc.: 6.250% 06/15/13...................... 10,475,000 9,833,406 7.875% 05/01/12...................... 15,900,000 16,675,125 ------------- 92,144,581 ------------- CAPITAL GOODS (1.4%) Kennametal, Inc., 7.200% 06/15/12...................... 12,970,000 13,433,366 Wabtec Corp., Senior Notes, 6.875% 07/31/13 (a).................. 9,185,000 9,093,150 ------------- 22,526,516 ------------- CASINOS & GAMING (6.3%) Harrahs Operating Co., Inc., 7.875% 12/15/05...................... 25,400,000 27,432,000 International Game Technology: 7.875% 05/15/04...................... 5,750,000 5,975,693 8.375% 05/15/09...................... 3,575,000 4,185,671 Park Place Entertainment Corp.: 7.875% 03/15/10...................... 150,000 160,125 8.875% 09/15/08...................... 500,000 550,000 9.375% 02/15/07...................... 30,150,000 33,014,250 Station Casinos, Inc.: 8.875% 12/01/08...................... 15,297,000 15,947,123 9.875% 06/01/10...................... 12,065,000 13,271,500 ------------- 100,536,362 ------------- See Accompanying Notes to Financial Statements 125 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND (CONT.) AUGUST 31, 2003 PAR VALUE - ----------------------------------------------------------------------------- CHEMICALS (4.1%) Acetex Corp.: 10.875% 08/01/09..................... $ 1,690,000 $ 1,842,100 10.875% 08/01/09 (a)................. 7,275,000 7,929,750 Airgas, Inc., 9.125% 10/01/11...................... 14,618,000 16,152,890 Equistar Chemicals LP: 10.125% 09/01/08..................... 7,370,000 7,370,000 10.625% 05/01/11 (a)................. 4,805,000 4,780,975 Ethyl Corp., 8.875% 05/01/10...................... 16,400,000 16,564,000 MacDermid, Inc., 9.125% 07/15/11...................... 9,520,000 10,472,000 ------------- 65,111,715 ------------- CONSUMER PRODUCTS (3.3%) Hasbro, Inc.: 6.150% 07/15/08...................... 16,620,000 16,827,750 8.500% 03/15/06...................... 14,025,000 15,147,000 Scotts Co., 8.625% 01/15/09...................... 18,990,000 19,892,025 ------------- 51,866,775 ------------- DIVERSIFIED MEDIA (2.0%) Lamar Media Corp.: 7.250% 01/01/13...................... 1,700,000 1,763,750 7.250% 01/01/13 (a).................. 25,058,000 25,997,675 8.625% 09/15/07...................... 3,160,000 3,262,700 ------------- 31,024,125 ------------- ENERGY (10.1%) Chesapeake Energy Corp.: 7.500% 09/15/13 (a).................. 9,625,000 9,745,313 8.125% 04/01/11...................... 3,050,000 3,187,250 8.375% 11/01/08...................... 6,230,000 6,572,650 9.000% 08/15/12...................... 8,750,000 9,450,000 Series 1999 B, 8.500% 03/15/12...................... 850,000 892,500 Grant Prideco: 9.000% 12/15/09...................... 14,995,000 15,782,238 9.625% 12/01/07...................... 12,380,000 13,184,700 Key Energy Services, Inc.: 6.375% 05/01/13...................... 8,915,000 8,469,250 8.375% 03/01/08...................... 2,560,000 2,675,200 Offshore Logistics, Inc., 6.125% 06/18/13 (a).................. 20,800,000 19,760,000 Pogo Producing Co., 8.250% 04/15/11...................... 3,080,000 3,280,200 PAR VALUE - ----------------------------------------------------------------------------- Pride International, Inc.: 9.375% 05/01/07...................... $ 3,228,000 $ 3,324,840 10.000% 06/01/09..................... 6,950,000 7,506,000 Universal Compressions Inc., 7.250% 05/15/10 (a).................. 5,150,000 5,201,500 Vintage Petroleum, Inc.: 7.875% 05/15/11...................... 500,000 505,000 8.625% 02/01/09...................... 1,000,000 1,025,000 9.750% 06/30/09...................... 7,675,000 8,135,500 Westport Resources Corp.: 8.250% 11/01/11...................... 20,380,000 21,806,600 8.250% 11/01/11 (a).................. 1,175,000 1,257,250 XTO Energy, Inc.: 6.250% 04/15/13...................... 1,600,000 1,600,000 7.500% 04/15/12...................... 15,515,000 16,678,625 ------------- 160,039,616 ------------- ENVIRONMENTAL (2.4%) Allied Waste North America, Inc., Series B, 10.000% 08/01/09..................... 29,645,000 32,090,713 Synagro Technologies, Inc., 9.500% 04/01/09...................... 6,150,000 6,580,500 ------------- 38,671,213 ------------- FOOD, BEVERAGE & TOBACCO (3.6%) Constellation Brands, Inc.: 8.000% 02/15/08...................... 1,500,000 1,582,500 8.125% 01/15/12...................... 9,015,000 9,386,869 8.500% 03/01/09...................... 10,775,000 11,206,000 8.625% 08/01/06...................... 5,100,000 5,457,000 Cott Beverages, Inc., 8.000% 12/15/11...................... 27,700,000 28,946,500 ------------- 56,578,869 ------------- HEALTH CARE (8.3%) AdvancePCS, 8.500% 04/01/08...................... 8,775,000 9,257,625 AmerisourceBergen Corp.: 7.250% 11/15/12...................... 12,280,000 12,402,800 8.125% 09/01/08...................... 17,125,000 18,109,688 Apogent Technologies, Inc., 6.500% 05/15/13 (a).................. 2,150,000 2,117,750 HCA, Inc.: 6.910% 06/15/05...................... 7,025,000 7,333,552 7.000% 07/01/07...................... 1,000,000 1,050,519 8.750% 09/01/10...................... 7,000,000 7,776,622 Omnicare, Inc.: 6.125% 06/01/13...................... 3,950,000 3,772,250 Series B, 8.125% 03/15/11...................... 14,740,000 15,624,400 See Accompanying Notes to Financial Statements 126 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- PAR VALUE - ----------------------------------------------------------------------------- Province Healthcare Co., 7.500% 06/01/13...................... $12,800,000 $ 12,320,000 Select Medical Corp.: 7.500% 08/01/13 (a).................. 4,150,000 4,139,625 9.500% 06/15/09...................... 11,275,000 12,177,000 Triad Hospitals, Inc., Series B, 8.750% 05/01/09...................... 23,100,000 24,601,500 ------------- 130,683,331 ------------- HOMEBUILDERS (2.4%) KB Home: 7.750% 02/01/10...................... 5,050,000 5,151,000 8.625% 12/15/08...................... 6,325,000 6,641,250 9.500% 02/15/11...................... 7,575,000 8,105,250 Toll Brothers, Inc., 8.250% 02/01/11...................... 3,200,000 3,392,000 Toll Corp.: 7.750% 09/15/07...................... 3,670,000 3,761,750 8.000% 05/01/09...................... 5,765,000 6,038,837 8.125% 02/01/09...................... 3,750,000 3,946,875 8.250% 12/01/11...................... 1,250,000 1,325,000 ------------- 38,361,962 ------------- HOTELS (2.1%) Extended Stay America, Inc.: 9.150% 03/15/08...................... 10,890,000 11,216,700 9.875% 06/15/11...................... 9,050,000 9,615,625 ITT Corp., 6.750% 11/15/05...................... 6,055,000 6,312,337 Starwood Hotels & Resorts Worldwide, Inc., 7.375% 05/01/07...................... 5,300,000 5,551,750 ------------- 32,696,412 ------------- METALS & MINING (2.1%) Arch Western Finance LLC, 6.750% 07/01/13 (a).................. 17,940,000 17,715,750 Peabody Energy Corp., 6.875% 03/15/13...................... 15,800,000 15,800,000 ------------- 33,515,750 ------------- PACKAGING (5.0%) Ball Corp.: 6.875% 12/15/12...................... 22,997,000 22,997,000 6.875% 12/15/12 (a).................. 9,900,000 9,900,000 7.750% 08/01/06...................... 2,850,000 3,056,625 Owens-Brockway Glass Container: 8.875% 02/15/09...................... 1,000,000 1,050,000 8.875% 11/15/12...................... 1,750,000 1,837,500 Owens-Illinois, Inc.: 7.150% 05/15/05...................... 8,225,000 8,307,250 7.350% 05/15/08...................... 5,400,000 5,211,000 8.100% 05/15/07...................... 6,400,000 6,464,000 PAR VALUE - ----------------------------------------------------------------------------- Silgan Holdings, Inc., 9.000% 06/01/09...................... $19,471,000 $ 20,152,485 ------------- 78,975,860 ------------- PAPER & FOREST PRODUCTS (2.9%) Abitibi Consolidated, Inc.: 6.000% 06/20/13...................... 4,000,000 3,613,104 7.875% 08/01/09...................... 13,225,000 13,692,662 Cascades, Inc., 7.250% 02/15/13 (a).................. 7,605,000 7,509,937 Smurfit-Stone Container Corp., 8.250% 10/01/12...................... 4,580,000 4,740,300 Stone Container Corp.: 8.375% 07/01/12...................... 5,185,000 5,340,550 9.750% 02/01/11...................... 9,800,000 10,633,000 ------------- 45,529,553 ------------- PRINTING & PUBLISHING (4.5%) Dex Media East LLC, 12.125% 11/15/12..................... 18,550,000 22,399,125 Houghton Mifflin Co., 9.875% 02/01/13 (a).................. 16,490,000 17,974,100 Morris Publishing, Senior Subordinated Notes, 7.000% 08/01/13 (a).................. 5,125,000 5,125,000 R.H. Donnelly Finance Corp.: 8.875% 12/15/10 (a).................. 1,320,000 1,445,400 10.875% 12/15/12 (a)................. 21,245,000 24,750,425 ------------- 71,694,050 ------------- RAILROAD (0.4%) Kansas City Southern: 7.500% 06/15/09...................... 1,655,000 1,690,169 9.500% 10/01/08...................... 4,550,000 4,965,187 ------------- 6,655,356 ------------- REAL ESTATE INVESTMENT TRUST (REIT) (1.8%) Health Care REIT, Inc.: 7.500% 08/15/07...................... 13,000,000 13,972,543 8.000% 09/12/12...................... 125,000 136,167 iStar Financial, Inc. 7.000% 03/15/08...................... 10,450,000 10,685,125 8.750% 08/15/08...................... 2,890,000 3,174,087 ------------- 27,967,922 ------------- RESTAURANTS (2.1%) Yum! Brands, Inc.: 7.450% 05/15/05...................... 1,810,000 1,905,025 7.650% 05/15/08...................... 4,050,000 4,363,875 7.700% 07/01/12...................... 5,315,000 5,673,762 8.500% 04/15/06...................... 3,965,000 4,331,763 8.750% 04/15/11...................... 15,585,000 17,572,087 ------------- 33,846,512 ------------- See Accompanying Notes to Financial Statements 127 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND (CONT.) AUGUST 31, 2003 PAR VALUE - ----------------------------------------------------------------------------- SERVICES (5.3%) Corrections Corp. of America: 7.500% 05/01/11...................... $12,800,000 $ 12,992,000 Senior Subordinated Notes, 7.500% 05/01/11 (a).................. 16,600,000 16,849,000 Iron Mountain, Inc.: 7.750% 01/15/15...................... 6,875,000 7,012,500 8.250% 07/01/11...................... 1,120,000 1,164,800 8.625% 04/01/13...................... 24,250,000 25,220,000 United Rentals, Inc., Series B: 8.800% 08/15/08...................... 8,175,000 8,011,500 9.250% 01/15/09...................... 7,495,000 7,457,525 9.500% 06/01/08...................... 3,700,000 3,700,000 10.750% 04/15/08..................... 1,000,000 1,100,000 -------------- 83,507,325 -------------- SHIPPING (1.0%) Teekay Shipping Corp., 8.875% 07/15/11...................... 14,181,000 15,404,111 -------------- TELECOMMUNICATIONS (1.4%) Nextel Communications, Inc.: 9.375% 11/15/09...................... 12,525,000 13,527,000 9.750% 10/31/07...................... 7,000,000 7,210,000 9.950% 02/15/08...................... 2,000,000 2,095,000 -------------- 22,832,000 -------------- Total Corporate Notes & Bonds (Cost of $1,391,634,815)............. 1,407,894,479 -------------- SHORT-TERM OBLIGATION (9.3%) Repurchase agreement with State Street Bank & Trust Co., dated 08/29/03, due 09/02/03 at 0.860%, collateralized by U.S. Treasury Notes with various maturities to 11/30/04, market value $150,445,944 (repurchase proceeds $147,498,570) (Cost of $147,488,000)............... 147,488,000 147,488,000 -------------- TOTAL INVESTMENTS (98.2%) (Cost of $1,539,122,815) (b)......... 1,555,382,479 -------------- OTHER ASSETS & LIABILITIES, NET (1.8%)....... 28,732,583 -------------- NET ASSETS (100.0%).......................... $1,584,115,062 ============== NOTES TO SCHEDULE OF INVESTMENTS: (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 August 31, 2003, the value of these securities amounted to $255,947,587, which represents 16.2% of net assets. (b) Cost for federal income tax purposes is $1,542,968,965. COLUMBIA DAILY INCOME COMPANY AUGUST 31, 2003 PAR VALUE - ----------------------------------------------------------------------------- U.S. GOVERNMENT AGENCIES (20.1%) Federal National Mortgage Association (FNMA): 1.040% 10/01/03...................... $15,500,000 $ 15,486,567 1.060% 11/26/03...................... 15,000,000 14,962,017 4.750% 11/14/03...................... 16,298,000 16,416,125 Federal Home Loan Bank (FHLB): 1.050% 10/03/03...................... 16,400,000 16,384,693 1.150% 09/24/03 (a).................. 11,500,000 11,491,551 2.500% 11/14/03...................... 4,800,000 4,812,078 3.125% 11/14/03...................... 6,010,000 6,032,637 6.375% 11/14/03...................... 6,200,000 6,265,454 Federal Home Loan Mortgage Corp. (FHLMC): 1.040% 10/14/03...................... 10,300,000 10,287,205 1.055% 10/30/03...................... 8,200,000 8,185,822 5.250% 02/15/04...................... 20,000,000 20,367,225 6.375% 11/15/03...................... 3,529,000 3,566,822 Student Loan Marketing Association (SLMA): 1.067% 11/20/03 (a).................. 26,500,000 26,499,895 1.077% 02/19/04 (a).................. 20,000,000 20,000,000 ------------- Total U.S. Government Agencies (Cost of $180,758,091)............... 180,758,091 ------------- COMMERCIAL PAPER (79.9%) Abbey National North America LLC: 1.010% 09/05/03...................... 6,000,000 5,999,327 1.100% 09/30/03...................... 12,000,000 11,990,237 Abbott Laboratories, 1.010% 09/03/03 (b)(c)............... 5,200,000 5,199,708 American Express Credit Corp., 1.010% 09/30/03...................... 18,000,000 17,985,355 American General Finance Corp.: 1.010% 09/25/03...................... 13,500,000 13,490,910 1.010% 10/23/03...................... 9,000,000 8,986,870 American Honda Finance: 1.020% 09/10/03...................... 4,700,000 4,698,802 1.030% 09/08/03...................... 7,000,000 6,998,598 1.050% 10/08/03...................... 6,300,000 6,293,201 See Accompanying Notes to Financial Statements 128 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- PAR VALUE - ----------------------------------------------------------------------------- Archer Daniels Midland Co.: 1.020% 09/09/03 (b)(c)............... $ 5,500,000 $ 5,498,753 1.020% 09/23/03 (b)(c)............... 10,000,000 9,993,767 Banc One Corp., 1.050% 10/31/03...................... 18,000,000 17,968,500 Barclays U.S. Funding Corp., 1.040% 10/28/03...................... 20,000,000 19,967,067 BellSouth Corp.: 1.020% 09/18/03 (b)(c)............... 3,300,000 3,298,411 1.020% 09/19/03 (b)(c)............... 10,000,000 9,994,900 Brown-Forman Corp., 1.010% 09/12/03...................... 9,400,000 9,397,099 Caterpillar Financial Services Corp.: 1.020% 09/16/03...................... 5,265,000 5,262,762 1.020% 09/22/03...................... 4,305,000 4,302,439 Chevron UK Investment PLC: 0.910% 09/18/03 (a).................. 6,500,000 6,497,207 1.010% 09/08/03...................... 9,000,000 8,998,233 1.010% 09/22/03...................... 9,000,000 8,994,698 Citicorp: 1.010% 10/02/03...................... 8,300,000 8,292,781 1.060% 09/04/03...................... 14,600,000 14,598,710 Clorox Corp., 0.980% 09/11/03...................... 13,000,000 12,996,461 Coca-Cola Co.: 0.880% 09/09/03...................... 10,000,000 9,998,044 1.020% 10/07/03...................... 13,000,000 12,986,740 Deutsche Bank Financial, 1.025% 09/29/03...................... 18,000,000 17,985,650 Diageo Capital PLC: 1.000% 10/15/03 (b).................. 11,500,000 11,485,944 1.000% 10/20/03 (b).................. 2,000,000 1,997,278 E.I. Du Pont de Nemours & Co.: 1.000% 09/03/03...................... 8,400,000 8,399,533 1.010% 09/26/03...................... 10,000,000 9,992,986 Exxon Asset Management Co., 1.000% 09/10/03...................... 15,000,000 14,996,250 Gannett, Inc.: 1.020% 09/04/03 (b)(c)............... 4,300,000 4,299,635 1.050% 09/08/03 (b)(c)............... 4,600,000 4,599,061 General Electric Capital Corp.: 1.060% 10/16/03...................... 8,600,000 8,588,605 1.220% 09/10/03...................... 14,000,000 13,995,730 Goldman Sachs Group, Inc., 1.020% 11/04/03...................... 13,000,000 12,976,427 Household Finance Corp.: 1.020% 09/02/03...................... 4,600,000 4,599,870 1.200% 09/02/03...................... 9,000,000 8,999,700 PAR VALUE - ----------------------------------------------------------------------------- J.P. Morgan Chase & Co., 1.010% 10/22/03...................... $ 9,000,000 $ 8,987,123 Lubrizol Corp.: 1.010% 10/10/03 (b)(c)............... 10,400,000 10,388,621 1.180% 09/15/03 (b)(c)............... 5,300,000 5,297,568 McGraw-Hill, Inc., 1.150% 09/17/03...................... 14,000,000 13,992,844 Merck & Co., Inc., 1.040% 10/20/03...................... 22,000,000 21,968,858 MetLife Funding, Inc., 1.010% 10/30/03...................... 11,000,000 10,981,792 Nestle Capital Corp.: 1.020% 09/12/03 (b).................. 15,400,000 15,395,200 1.030% 09/19/03 (b).................. 7,300,000 7,296,240 Nike, Inc., 1.010% 09/17/03...................... 10,000,000 9,995,511 PACCAR Financial Corp.: 1.010% 09/03/03...................... 6,300,000 6,299,647 1.010% 10/27/03...................... 5,100,000 5,091,987 1.020% 09/26/03...................... 6,700,000 6,695,254 Private Export Funding Corp.: 1.000% 12/17/03 (b)(c)............... 11,600,000 11,565,522 1.000% 01/15/04 (b)(c)............... 10,000,000 9,962,222 Procter & Gamble Co.: 1.020% 10/06/03...................... 14,200,000 14,185,918 1.020% 10/29/03...................... 8,500,000 8,486,032 Prudential Funding Corp., 1.040% 09/26/03...................... 18,000,000 17,987,000 Pzifer, Inc.: 1.010% 09/16/03 (b).................. 10,700,000 10,695,497 1.020% 10/02/03 (b).................. 12,000,000 11,989,460 Royal Bank of Scotland PLC, 1.030% 09/15/03...................... 18,000,000 17,992,790 San Paolo U.S. Finance Co., 1.070% 09/12/03...................... 18,000,000 17,994,115 Schering-Plough Corp., 1.040% 09/18/03...................... 13,300,000 13,293,468 Shell Finance: 1.020% 10/15/03...................... 5,500,000 5,493,143 1.050% 11/17/03...................... 12,000,000 11,973,050 Societe Generale of North America, Inc., 1.020% 10/08/03...................... 18,000,000 17,981,130 UBS Finance, Inc., 1.010% 09/05/03...................... 6,000,000 5,999,327 Verizon Network Funding Corp.: 1.030% 09/25/03...................... 10,000,000 9,993,133 1.030% 10/03/03...................... 6,000,000 5,994,507 Wal-Mart Stores, Inc., 1.030% 09/03/03...................... 7,600,000 7,599,565 See Accompanying Notes to Financial Statements 129 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- COLUMBIA DAILY INCOME COMPANY (CONT.) AUGUST 31, 2003 PAR VALUE - ----------------------------------------------------------------------------- Washington Post Co.: 1.030% 10/14/03 (b)(c)............... $12,000,000 $ 11,985,237 1.040% 10/09/03 (b)(c)............... 5,600,000 5,593,852 Wells Fargo & Co., 1.010% 09/05/03...................... 5,200,000 5,199,416 ------------- Total Commercial Paper (Cost of $717,961,278)............... 717,961,278 ------------- SHORT-TERM OBLIGATION (0.1%) Repurchase agreement with State Street Bank & Trust Co., dated 08/29/03, due 09/02/03 at 0.860%, collateralized by a U.S. Treasury Note maturing 07/15/06, market value of $641,275 (repurchase proceeds $627,060) (Cost of $627,000)................... 627,000 627,000 ------------- TOTAL INVESTMENTS (100.1%) (Cost of $899,346,369) (d)........... 899,346,369 ------------- OTHER ASSETS & LIABILITIES, NET (-0.1%)...... (1,182,488) ------------- NET ASSETS (100.0%).......................... $ 898,163,881 ============= NOTES TO SCHEDULE OF INVESTMENTS: (a) Floating rate note whose interest rate is reset periodically based on an index. The interest rate shown reflects the rate in effect at August 31, 2003. (b) Represents private placement securities exempt from registration by Section 4(2) of the Securities Act of 1933. These securities generally are issued to investors who are purchasing the securities for investments and not for public distribution. Any resale by the Fund must be in an exempt transaction, normally to other institutional investors. At August 31, 2003, the aggregate amortized cost of the Fund's private placement securities were $156,536,876 which represents 17.4% of net assets. None of these securities were deemed illiquid. (c) 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 August 31, 2003, the value of these securities amounted to $97,677,257, which represents 10.9% of net assets. (d) Cost for both financial statements and federal income tax purposes is the same. See Accompanying Notes to Financial Statements 130 This page intentionally left blank. 131 STATEMENTS OF ASSETS AND LIABILITIES - -------------------------------------------------------------------------------- COLUMBIA FUNDS AUGUST 31, 2003
COMMON INTERNATIONAL MID CAP SMALL CAP STOCK GROWTH STOCK GROWTH GROWTH FUND FUND FUND FUND FUND ------------ -------------- ------------ -------------- ------------ ASSETS: Investments, at identified cost (including short-term obligations) ............ $364,472,970 $ 760,406,748 $246,263,827 $ 844,965,814 $495,190,366 ============ ============== ============ ============== ============ Investments, at value........................... $426,469,781 $ 923,538,636 $268,812,068 $1,020,412,185 $601,816,384 Repurchase agreement............................ 13,193,000 17,932,000 6,616,000 28,145,000 39,723,000 ------------ -------------- ------------ -------------- ------------ Total investments, at value................... $439,662,781 $ 941,470,636 $275,428,068 $1,048,557,185 $641,539,384 Cash............................................ 165 800 946 209 7 Foreign currency (cost of $10,578,470).......... -- -- 10,579,591 -- -- Receivable for: Investments sold.............................. 8,649,914 17,766,439 8,205,472 3,755,645 2,306,558 Capital stock sold............................ 379,708 868,115 1,534,814 1,417,456 3,379,476 Interest...................................... 946 1,285 474 2,017 2,847 Dividends..................................... 404,165 605,391 731,132 256,368 130,275 Expense reimbursement or waiver due from Advisor or Distributor ............... -- 12,384 -- -- -- Prepaid expense................................. 15,887 -- -- 7,791 -- Deferred compensation plan...................... -- 1,927 5,892 2,185 -- Other assets.................................... 46 -- -- 24,850 -- ------------ -------------- ------------ -------------- ------------ Total assets.................................... 449,113,612 960,726,977 296,486,389 1,054,023,706 647,358,547 ------------ -------------- ------------ -------------- ------------ LIABILITIES: Payable to custodian bank....................... -- -- -- -- -- Payable for: Investments purchased on a delayed delivery basis ...................... -- -- -- -- -- Investments purchased ........................ 5,249,568 29,688,795 14,065,242 12,869,002 8,560,944 Capital stock redeemed ....................... 14,743,830 359,055 140,052 911,439 388,195 Distributions ................................ -- -- -- -- -- Investment management fee .................... 221,831 457,089 212,016 723,752 504,177 Transfer agent fee ........................... 144,365 249,724 149,304 142,697 184,414 Pricing and bookkeeping fees ................. 3,789 8,405 2,464 7,983 3,453 Expenses received at merger ................. -- 77,730 12,405 62,871 -- Directors' fees .............................. 5,211 5,716 4,189 5,643 1,000 Audit fee .................................... 26,150 27,140 35,061 25,980 29,410 Distribution and service fees ................ 734 6,230 11,708 12,735 -- Custody fee .................................. 3,984 6,591 23,000 4,400 13,060 Reports to shareholders ...................... 75,866 82,870 31,287 64,332 41,343 Deferred compensation plan ..................... -- 1,927 5,892 2,185 -- Foreign capital gains tax payable .............. -- -- 456,569 -- -- Other liabilities .............................. 13,566 19,453 5,641 16,834 16,978 ------------ -------------- ------------ -------------- ------------ Total liabilities............................... 20,488,894 30,990,725 15,154,830 14,849,853 9,742,974 ------------ -------------- ------------ -------------- ------------ NET ASSETS........................................ $428,624,718 $ 929,736,252 $281,331,559 $1,039,173,853 $637,615,573 ============ ============== ============ ============== ============ NET ASSETS consist of: Paid-in capital ................................ $500,230,887 $1,215,080,384 $314,914,091 $1,103,720,347 $700,372,092 Undistributed (overdistributed) net investment income ......................... 1,506,446 (1,289) 1,284,980 (2,185) 180,997 Accumulated net realized gain (loss) ........... (148,302,426) (466,406,731) (63,576,936) (268,135,680) (209,286,534) Unrealized appreciation (depreciation) on: Investments .................................. 75,189,811 181,063,888 29,164,241 203,591,371 146,349,018 Foreign currency translations ................ -- -- (81,562) -- -- Foreign capital gains tax..................... -- -- (373,255) -- -- ------------ -------------- ------------ -------------- ------------ NET ASSETS........................................ $428,624,718 $ 929,736,252 $281,331,559 $1,039,173,853 $637,615,573 ============ ============== ============ ============== ============
REAL ESTATE STRATEGIC SHORT TERM EQUITY TECHNOLOGY INVESTOR BALANCED BOND FUND FUND FUND FUND FUND ------------ ----------- ------------ ------------ ------------ ASSETS: Investments, at identified cost (including short-term obligations) ............ $706,602,299 $19,360,558 $250,911,114 $590,741,807 $562,536,624 ============ =========== ============ ============ ============ Investments, at value........................... $852,324,509 $18,367,164 $235,998,817 $629,718,748 $469,201,868 Repurchase agreement............................ 45,627,000 4,200,000 56,287,000 37,340,000 94,242,000 ------------ ----------- ------------ ------------ ------------ Total investments, at value................... $897,951,509 $22,567,164 $292,285,817 $667,058,748 $563,443,868 Cash............................................ 577 1,810,691 295 45,466 17,143 Foreign currency (cost of $10,578,470).......... -- -- -- -- -- Receivable for: Investments sold.............................. 5,933,777 205,553 2,890,953 10,537,501 10,769,818 Capital stock sold............................ 1,821,455 81,034 1,294,632 1,480,529 999,582 Interest...................................... 3,270 301 4,034 1,962,085 3,420,907 Dividends..................................... 971,091 5,205 341,503 392,415 -- Expense reimbursement or waiver due from Advisor or Distributor ............... -- 68,855 18,418 -- 225,456 Prepaid expense................................. 1,609 -- 15,315 15,514 10,903 Deferred compensation plan...................... -- -- 8,492 -- 2,979 Other assets.................................... -- -- -- -- -- ------------ ----------- ------------ ------------ ------------ Total assets.................................... 906,683,288 24,738,803 296,859,459 681,492,258 578,890,656 ------------ ----------- ------------ ------------ ------------ LIABILITIES: Payable to custodian bank....................... -- -- -- -- -- Payable for: Investments purchased on a delayed delivery basis ...................... -- -- -- 19,361,334 28,068,528 Investments purchased ........................ -- 3,327,163 4,645,125 5,093,710 -- Capital stock redeemed ....................... 417,684 49,212 169,391 11,308,104 770,961 Distributions ................................ -- -- -- -- 402,698 Investment management fee .................... 562,285 14,845 178,417 276,779 221,365 Transfer agent fee ........................... 222,392 12,962 94,300 135,534 68,846 Pricing and bookkeeping fees ................. 7,356 2,083 1,820 8,064 4,538 Expenses received at merger ................. -- -- 16,283 -- 43,101 Directors' fees .............................. 6,216 1,456 3,017 7,109 12,107 Audit fee .................................... 21,430 17,100 25,920 29,097 27,690 Distribution and service fees ................ 11,136 1,501 16,994 4,149 51,915 Custody fee .................................. 2,811 1,108 7,590 5,503 2,200 Reports to shareholders ...................... 52,983 4,802 9,915 51,888 19,739 Deferred compensation plan ..................... -- -- 8,492 -- 2,979 Foreign capital gains tax payable .............. -- -- -- -- -- Other liabilities .............................. 25,475 7,084 14,174 19,630 17,912 ------------ ----------- ------------ ------------ ------------ Total liabilities............................... 1,329,768 3,439,316 5,191,438 36,300,901 29,714,579 ------------ ----------- ------------ ------------ ------------ NET ASSETS........................................ $905,353,520 $21,299,487 $291,668,021 $645,191,357 $549,176,077 ============ =========== ============ ============ ============ NET ASSETS consist of: Paid-in capital ................................ $720,937,077 $24,015,762 $278,978,811 $717,293,000 $550,334,561 Undistributed (overdistributed) net investment income ......................... 4,718,014 -- 1,354,437 1,622,249 5,674 Accumulated net realized gain (loss) ........... (11,650,781) (5,922,881) (30,039,854) (150,040,833) (2,071,402) Unrealized appreciation (depreciation) on: Investments .................................. 191,349,210 3,206,606 41,374,703 76,316,941 907,244 Foreign currency translations ................ -- -- (76) -- -- Foreign capital gains tax..................... -- -- -- -- -- ------------ ----------- ------------ ------------ ------------ NET ASSETS........................................ $905,353,520 $21,299,487 $291,668,021 $645,191,357 $549,176,077 ============ =========== ============ ============ ============
NATIONAL OREGON FIXED INCOME MUNICIPAL MUNICIPAL DAILY SECURITIES BOND BOND HIGH YIELD INCOME FUND FUND FUND FUND COMPANY ------------ ----------- ------------ -------------- ------------ ASSETS: Investments, at identified cost (including short-term obligations) ............ $568,251,735 $15,266,214 $473,321,281 $1,539,122,815 $899,346,369 ============ =========== ============ ============== ============ Investments, at value........................... $520,957,468 $15,690,670 $484,701,423 $1,407,894,479 $899,346,369 Repurchase agreement............................ 54,303,000 -- -- 147,488,000 -- ------------ ----------- ------------ -------------- ------------ Total investments, at value................... $575,260,468 $15,690,670 $484,701,423 $1,555,382,479 $899,346,369 Cash............................................ 322 -- -- 501 380 Foreign currency (cost of $10,578,470).......... -- -- -- -- -- Receivable for: Investments sold.............................. 7,663,830 -- -- 1,076,702 -- Capital stock sold............................ 827,237 206,865 261,697 8,808,340 1,711,891 Interest...................................... 4,675,359 205,682 6,008,418 28,945,740 637,518 Dividends..................................... -- -- -- -- -- Expense reimbursement or waiver due from Advisor or Distributor ............... -- 73,045 -- -- -- Prepaid expense................................. -- -- 23,556 60,613 930 Deferred compensation plan...................... -- -- -- -- -- Other assets.................................... 215,943 595 -- -- 573,525 ------------ ----------- ------------ -------------- ------------ Total assets.................................... 588,643,159 16,176,857 490,995,094 1,594,274,375 902,270,613 ------------ ----------- ------------ -------------- ------------ LIABILITIES: Payable to custodian bank....................... -- 117,684 -- -- -- Payable for: Investments purchased on a delayed delivery basis ...................... 66,702,310 -- -- -- -- Investments purchased ........................ -- -- -- 4,544,249 -- Capital stock redeemed ....................... 856,274 207,633 1,121,164 1,992,422 3,177,422 Distributions ................................ -- 4,090 164,579 2,237,699 -- Investment management fee .................... 227,763 6,948 209,165 754,317 426,069 Transfer agent fee ........................... 119,136 7,001 159,865 207,200 382,178 Pricing and bookkeeping fees ................. 8,402 2,073 4,026 10,753 8,600 Expenses received at merger ................. -- -- -- -- -- Directors' fees .............................. 5,749 3,745 4,653 3,499 3,000 Audit fee .................................... 28,360 23,500 27,720 30,430 27,430 Distribution and service fees ................ 9,096 1,026 3,673 236,669 -- Custody fee .................................. 4,643 1,145 4,661 2,699 7,200 Reports to shareholders ...................... 39,832 7,495 24,003 57,400 70,643 Deferred compensation plan ..................... -- -- -- -- -- Foreign capital gains tax payable .............. -- -- -- -- -- Other liabilities .............................. 50,997 10,975 7,313 81,976 4,190 ------------ ----------- ------------ -------------- ------------ Total liabilities............................... 68,052,562 393,315 1,730,822 10,159,313 4,106,732 ------------ ----------- ------------ -------------- ------------ NET ASSETS........................................ $520,590,597 $15,783,542 $489,264,272 $1,584,115,062 $898,163,881 ============ =========== ============ ============== ============ NET ASSETS consist of: Paid-in capital ................................ $517,246,964 $15,300,439 $474,398,468 $1,607,390,431 $898,163,881 Undistributed (overdistributed) net investment income ......................... (760,011) 2,584 141,548 (3,743,314) -- Accumulated net realized gain (loss) ........... (2,905,089) 56,063 3,344,114 (35,791,719) -- Unrealized appreciation (depreciation) on: Investments .................................. 7,008,733 424,456 11,380,142 16,259,664 -- Foreign currency translations ................ -- -- -- -- -- Foreign capital gains tax..................... -- -- -- -- -- ------------ ----------- ------------ -------------- ------------ NET ASSETS........................................ $520,590,597 $15,783,542 $489,264,272 $1,584,115,062 $898,163,881 ============ =========== ============ ============== ============
See Accompanying Notes to Financial Statements 132-133 Spread STATEMENTS OF ASSETS AND LIABILITIES - -------------------------------------------------------------------------------- COLUMBIA FUNDS AUGUST 31, 2003
COMMON INTERNATIONAL MID CAP SMALL CAP STOCK GROWTH STOCK GROWTH GROWTH FUND FUND FUND FUND FUND ------------ ------------ ------------- ------------ ------------ NET ASSETS: Class A Shares................................... $ 223,254 $ 4,229,024 $ 21,664,244 $ 4,525,070 -- ============ ============ ============= ============ ============ Class B Shares................................... $ 619,972 $ 792,602 $ 10,315,869 $ 4,242,490 -- ============ ============ ============= ============ ============ Class D Shares................................... $ 112,206 $ 293,593 $ 632,968 $ 737,417 -- ============ ============ ============= ============ ============ Class G Shares................................... -- $ 14,810,013 -- $ 805,674 -- ============ ============ ============= ============ ============ Class T Shares................................... -- -- -- $ 29,920,340 -- ============ ============ ============= ============ ============ Class Z Shares................................... $427,669,286 $909,611,020 $ 248,718,478 $998,942,862 $637,615,573 ============ ============ ============= ============ ============ SHARES OUTSTANDING: Class A Shares................................... 12,968 171,867 1,909,647 250,188 -- ============ ============ ============= ============ ============ Class B Shares................................... 36,217 32,392 918,237 235,937 -- ============ ============ ============= ============ ============ Class D Shares................................... 6,559 11,995 56,142 41,022 -- ============ ============ ============= ============ ============ Class G Shares................................... -- 604,800 -- 44,817 -- ============ ============ ============= ============ ============ Class T Shares................................... -- -- -- 1,650,781 -- ============ ============ ============= ============ ============ Class Z Shares................................... 24,773,591 36,833,293 21,815,738 54,986,248 29,493,262 ============ ============ ============= ============ ============ CLASS A SHARES: Net asset value per share (a).................... $ 17.22 $ 24.61 $ 11.34 $ 18.09 -- ============ ============ ============= ============ ============ Maximum sales charge............................. 5.75% 5.75% 5.75% 5.75% -- ============ ============ ============= ============ ============ Maximum offering price per share (b)............. $ 18.27 $ 26.11 $ 12.03 $ 19.19 -- ============ ============ ============= ============ ============ CLASS B SHARES: Net asset value and offering price per share (a) .................................. $ 17.12 $ 24.47 $ 11.23 $ 17.98 -- ============ ============ ============= ============ ============ CLASS D SHARES: Net asset value per share (a).................... $ 17.11 $ 24.48 $ 11.27 $ 17.98 -- ============ ============ ============= ============ ============ Maximum sales charge............................. 1.00% 1.00% 1.00% 1.00% -- ============ ============ ============= ============ ============ Maximum offering price per share (b)............. $ 17.28 $ 24.73 $ 11.38 $ 18.16 -- ============ ============ ============= ============ ============ CLASS G SHARES: Net asset value and offering price per share (a) .................................. -- $ 24.49 -- $ 17.98 -- ============ ============ ============= ============ ============ CLASS T SHARES: Net asset value per share (a).................... -- -- -- $ 18.12 -- ============ ============ ============= ============ ============ Maximum sales charge............................. -- -- -- 5.75% -- ============ ============ ============= ============ ============ Maximum offering price per share (b)............. -- -- -- $ 19.23 -- ============ ============ ============= ============ ============ CLASS Z SHARES: Net asset value and offering price per share (c) $ 17.26 $ 24.70 $ 11.40 $ 18.17 $ 21.62 ============ ============ ============= ============ ============
REAL ESTATE STRATEGIC SHORT TERM EQUITY TECHNOLOGY INVESTOR BALANCED BOND FUND FUND FUND FUND FUND ------------ ------------ ------------ ------------ ------------ NET ASSETS: Class A Shares................................... $ 12,364,384 $ 375,708 $ 60,112,271 $ 670,002 $ 37,261,134 ============ ============ ============ ============ ============ Class B Shares................................... $ 4,776,082 $ 1,245,676 $ 3,397,500 $ 3,348,724 $ 26,965,425 ============ ============ ============ ============ ============ Class D Shares................................... $ 3,466,499 $ 14,764 $ 704,480 $ 770,465 $ 18,512,248 ============ ============ ============ ============ ============ Class G Shares................................... -- -- -- -- $ 1,614,404 ============ ============ ============ ============ ============ Class T Shares................................... -- -- -- -- $ 28,229,557 ============ ============ ============ ============ ============ Class Z Shares................................... $884,746,555 $ 19,663,339 $227,453,770 $640,402,166 $436,593,309 ============ ============ ============ ============ ============ SHARES OUTSTANDING: Class A Shares................................... 587,787 63,600 3,769,506 34,934 4,321,054 ============ ============ ============ ============ ============ Class B Shares................................... 227,059 212,608 214,760 174,795 3,127,172 ============ ============ ============ ============ ============ Class D Shares................................... 164,802 2,509 44,563 40,201 2,146,834 ============ ============ ============ ============ ============ Class G Shares................................... -- -- -- -- 187,220 ============ ============ ============ ============ ============ Class T Shares................................... -- -- -- -- 3,273,725 ============ ============ ============ ============ ============ Class Z Shares................................... 42,017,490 3,314,033 14,230,455 33,366,854 50,631,617 ============ ============ ============ ============ ============ CLASS A SHARES: Net asset value per share (a).................... $ 21.04 $ 5.91 $ 15.95 $ 19.18 $ 8.62 ============ ============ ============ ============ ============ Maximum sales charge............................. 5.75% 5.75% 5.75% 5.75% 4.75% ============ ============ ============ ============ ============ Maximum offering price per share (b)............. $ 22.32 $ 6.27 $ 16.92 $ 20.35 $ 9.05 ============ ============ ============ ============ ============ CLASS B SHARES: Net asset value and offering price per share (a) .................................. $ 21.03 $ 5.86 $ 15.82 $ 19.16 $ 8.62 ============ ============ ============ ============ ============ CLASS D SHARES: Net asset value per share (a).................... $ 21.03 $ 5.88 $ 15.81 $ 19.17 $ 8.62 ============ ============ ============ ============ ============ Maximum sales charge............................. 1.00% 1.00% 1.00% 1.00% 1.00% ============ ============ ============ ============ ============ Maximum offering price per share (b)............. $ 21.24 $ 5.94 $ 15.97 $ 19.36 $ 8.71 ============ ============ ============ ============ ============ CLASS G SHARES: Net asset value and offering price per share (a) .................................. -- -- -- -- $ 8.62 ============ ============ ============ ============ ============ CLASS T SHARES: Net asset value per share (a).................... -- -- -- -- $ 8.62 ============ ============ ============ ============ ============ Maximum sales charge............................. -- -- -- -- 4.75% ============ ============ ============ ============ ============ Maximum offering price per share (b)............. -- -- -- -- $ 9.05 ============ ============ ============ ============ ============ CLASS Z SHARES: Net asset value and offering price per share (c) $ 21.06 $ 5.93 $ 15.98 $ 19.19 $ 8.62 ============ ============ ============ ============ ============
NATIONAL OREGON FIXED INCOME MUNICIPAL MUNICIPAL DAILY SECURITIES BOND BOND HIGH YIELD INCOME FUND FUND FUND FUND COMPANY ------------- ----------- ------------- -------------- ------------- NET ASSETS: Class A Shares................................... $ 7,503,053 $ 398,047 $ 2,138,261 $ 193,266,504 -- ============= =========== ============= ============== ============= Class B Shares................................... $ 4,409,662 $ 593,473 $ 999,476 $ 89,949,828 -- ============= =========== ============= ============== ============= Class D Shares................................... $ 2,631,679 $ 442,612 $ 699,530 $ 103,558,697 -- ============= =========== ============= ============== ============= Class G Shares................................... -- -- -- -- -- ============= =========== ============= ============== ============= Class T Shares................................... -- -- -- -- -- ============= =========== ============= ============== ============= Class Z Shares................................... $ 506,046,203 $14,349,410 $ 485,427,005 $1,197,340,033 $ 898,163,881 ============= =========== ============= ============== ============= SHARES OUTSTANDING: Class A Shares................................... 562,534 39,390 174,556 22,771,369 -- ============= =========== ============= ============== ============= Class B Shares................................... 330,620 58,727 81,594 10,598,416 -- ============= =========== ============= ============== ============= Class D Shares................................... 197,313 43,798 57,107 12,201,596 -- ============= =========== ============= ============== ============= Class G Shares................................... -- -- -- -- -- ============= =========== ============= ============== ============= Class T Shares................................... -- -- -- -- -- ============= =========== ============= ============== ============= Class Z Shares................................... 37,941,343 1,419,965 39,628,266 141,076,041 898,163,881 ============= =========== ============= ============== ============= CLASS A SHARES: Net asset value per share (a).................... $ 13.34 $ 10.11 $ 12.25 $ 8.49 -- ============= =========== ============= ============== ============= Maximum sales charge............................. 4.75% 4.75% 4.75% 4.75% -- ============= =========== ============= ============== ============= Maximum offering price per share (b)............. $ 14.01 $ 10.61 $ 12.86 $ 8.91 -- ============= =========== ============= ============== ============= CLASS B SHARES: Net asset value and offering price per share (a) .................................. $ 13.34 $ 10.11 $ 12.25 $ 8.49 -- ============= =========== ============= ============== ============= CLASS D SHARES: Net asset value per share (a).................... $ 13.34 $ 10.11 $ 12.25 $ 8.49 -- ============= =========== ============= ============== ============= Maximum sales charge............................. 1.00% 1.00% 1.00% 1.00% -- ============= =========== ============= ============== ============= Maximum offering price per share (b)............. $ 13.47 $ 10.21 $ 12.37 $ 8.58 -- ============= =========== ============= ============== ============= CLASS G SHARES: Net asset value and offering price per share (a) .................................. -- -- -- -- -- ============= =========== ============= ============== ============= CLASS T SHARES: Net asset value per share (a).................... -- -- -- -- -- ============= =========== ============= ============== ============= Maximum sales charge............................. -- -- -- -- -- ============= =========== ============= ============== ============= Maximum offering price per share (b)............. -- -- -- -- -- ============= =========== ============= ============== ============= CLASS Z SHARES: Net asset value and offering price per share (c) $ 13.34 $ 10.11 $ 12.25 $ 8.49 $ 1.00 ============= =========== ============= ============== =============
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. (b) On sales of $50,000 or more the offering price is reduced. (c) Redemption price per share is equal to net asset value less any applicable redemption fee. See Accompanying Notes to Financial Statements 134-135 Spread STATEMENTS OF OPERATIONS - -------------------------------------------------------------------------------- COLUMBIA FUNDS FOR THE PERIOD ENDED AUGUST 31, 2003 (a)
COMMON INTERNATIONAL MID CAP SMALL CAP STOCK GROWTH STOCK GROWTH GROWTH FUND FUND FUND FUND FUND ------------ ------------ ------------- ------------ ------------ NET INVESTMENT INCOME: INCOME: Interest...................................... $ 77,151 $ 74,263 $ 82,768 $ 357,340 $ 146,609 Dividends..................................... 4,034,689 5,018,300 3,827,199 1,455,237 527,854 Foreign withholding tax....................... (15,858) (30,660) (403,597) (29,280) (3,998) ------------ ------------ ------------- ------------ ------------ Total income................................ 4,095,982 5,061,903 3,506,370 1,783,297 670,465 ------------ ------------ ------------- ------------ ------------ EXPENSES: Investment management fee..................... 1,648,054 3,414,673 1,398,948 5,318,563 3,458,104 Distribution fee: Class B..................................... 1,763 1,974 50,314 18,438 -- Class D..................................... 310 955 2,779 2,884 -- Class G..................................... -- 60,094 -- 3,187 -- Service fee: Class A..................................... 243 6,158 33,220 3,951 -- Class B..................................... 586 656 16,772 6,146 -- Class D..................................... 103 317 926 961 -- Class G..................................... -- 27,619 -- 1,471 -- Class T..................................... -- -- -- 53,629 -- Transfer agent fee: Class A..................................... 433 10,095 63,829 6,462 -- Class B..................................... 1,548 1,155 61,242 12,757 -- Class D..................................... 364 446 3,967 1,547 -- Class G..................................... -- 34,375 -- 2,760 -- Class T..................................... -- -- -- 36,015 -- Class Z..................................... 647,084 1,165,734 497,672 1,078,002 770,117 Pricing and bookkeeping fees.................. 27,883 52,136 16,695 60,192 33,796 Directors' fees............................... 12,145 4,786 16,736 14,333 9,939 Custody fee................................... 11,206 20,041 78,708 19,729 2,201 Audit fee..................................... 25,637 30,293 25,545 34,611 26,566 Registration fee.............................. 119,598 86,913 63,757 165,215 54,886 Other expenses................................ 92,589 212,425 43,520 123,088 74,244 ------------ ------------ ------------- ------------ ------------ Total Expenses.............................. 2,589,546 5,130,845 2,374,630 6,963,941 4,429,853 Expenses reimbursed by Advisor................ -- -- -- -- -- Fees waived by Distributor: Class D..................................... -- -- -- -- -- Fees waived by Advisor: Class A..................................... -- -- -- (133) -- Class B..................................... -- -- (7,379) (2,918) -- Class D..................................... -- -- (2,779) (341) -- Class Z..................................... -- -- (143,433) (287,697) -- Custody earnings credit....................... (1) (1,061) (280) (527) (1,211) ------------ ------------ ------------- ------------ ------------ Net Expenses.................................. 2,589,545 5,129,784 2,220,759 6,672,325 4,428,642 ------------ ------------ ------------- ------------ ------------ NET INVESTMENT INCOME (LOSS)..................... 1,506,437 (67,881) 1,285,611 (4,889,028) (3,758,177) ------------ ------------ ------------- ------------ ------------
REAL ESTATE STRATEGIC SHORT TERM EQUITY TECHNOLOGY INVESTOR BALANCED BOND FUND FUND FUND FUND FUND ------------ ---------- ------------ ------------ ------------ NET INVESTMENT INCOME: INCOME: Interest...................................... $ 318,035 $ 5,349 $ 207,984 $ 8,072,969 $ 9,724,178 Dividends..................................... 22,181,169 33,208 3,144,227 3,887,152 -- Foreign withholding tax....................... (8,973) (945) (112,485) (15,333) -- ------------ ---------- ------------ ------------ ------------ Total income................................ 22,490,231 37,612 3,239,726 11,944,788 9,724,178 ------------ ---------- ------------ ------------ ------------ EXPENSES: Investment management fee..................... 4,042,456 79,533 1,276,121 2,135,099 1,618,065 Distribution fee: Class B..................................... 14,683 2,141 13,343 9,659 101,746 Class D..................................... 9,358 45 2,452 2,895 65,542 Class G..................................... -- -- -- -- 7,934 Service fee: Class A..................................... 8,682 268 90,202 627 40,856 Class B..................................... 4,868 713 4,448 3,214 33,762 Class D..................................... 3,093 15 817 965 21,747 Class G..................................... -- -- -- -- 1,831 Class T..................................... -- -- -- -- 29,593 Transfer agent fee: Class A..................................... 16,011 1,439 66,929 1,513 23,971 Class B..................................... 10,564 1,710 10,573 7,745 33,986 Class D..................................... 5,807 130 2,010 1,196 24,750 Class G..................................... -- -- -- -- 2,744 Class T..................................... -- -- -- -- 31,015 Class Z..................................... 1,362,478 97,082 325,849 850,895 233,341 Pricing and bookkeeping fees.................. 57,110 17,046 22,725 42,811 32,501 Directors' fees............................... 17,628 5,283 10,247 16,269 912 Custody fee................................... 12,810 6,539 26,062 24,587 13,227 Audit fee..................................... 19,643 17,480 27,874 29,633 38,798 Registration fee.............................. 120,077 110,534 44,194 116,632 232,240 Other expenses................................ 166,594 13,120 72,648 79,000 128,492 ------------ ---------- ------------ ------------ ------------ Total Expenses.............................. 5,871,862 353,078 1,996,494 3,322,740 2,717,053 Expenses reimbursed by Advisor................ -- (217,744) -- -- (251,782) Fees waived by Distributor: Class D..................................... -- -- -- -- (52,192) Fees waived by Advisor: Class A..................................... -- -- -- -- -- Class B..................................... -- -- (4,077) -- -- Class D..................................... -- -- (487) -- -- Class Z..................................... -- -- (39,589) -- -- Custody earnings credit....................... (80) (264) (2,714) (1,766) (3,254) ------------ ---------- ------------ ------------ ------------ Net Expenses.................................. 5,871,782 135,070 1,949,627 3,320,974 2,409,825 ------------ ---------- ------------ ------------ ------------ NET INVESTMENT INCOME (LOSS)..................... 16,618,449 (97,458) 1,290,099 8,623,814 7,314,353 ------------ ---------- ------------ ------------ ------------
FIXED NATIONAL OREGON INCOME MUNICIPAL MUNICIPAL DAILY SECURITIES BOND BOND HIGH YIELD INCOME FUND FUND FUND FUND COMPANY ------------ ------------ ------------ ------------ ------------ NET INVESTMENT INCOME: INCOME: Interest...................................... $ 16,633,423 $ 507,035 $ 16,538,243 $ 58,050,730 $ 8,221,104 Dividends..................................... -- 459 -- -- -- Foreign withholding tax....................... -- -- -- -- -- ------------ ----------- ------------ ------------ ------------ Total income................................ 16,633,423 507,494 16,538,243 58,050,730 8,221,104 ------------ ----------- ------------ ------------ ------------ EXPENSES: Investment management fee..................... 1,882,651 56,611 1,719,382 4,977,940 3,195,776 Distribution fee: Class B..................................... 17,681 2,029 3,700 298,743 -- Class D..................................... 10,050 1,384 3,518 350,413 -- Class G..................................... -- -- -- -- -- Service fee: Class A..................................... 6,743 437 1,732 187,307 -- Class B..................................... 5,877 674 1,233 99,160 -- Class D..................................... 3,334 460 1,173 116,805 -- Class G..................................... -- -- -- -- -- Class T..................................... -- -- -- -- -- Transfer agent fee: Class A..................................... 15,644 1,025 2,133 112,860 -- Class B..................................... 11,764 1,209 1,337 106,750 -- Class D..................................... 4,689 933 932 97,237 -- Class G..................................... -- -- -- -- -- Class T..................................... -- -- -- -- -- Class Z..................................... 629,633 14,477 325,271 939,608 1,181,362 Pricing and bookkeeping fees.................. 41,640 23,225 34,089 84,027 69,749 Directors' fees............................... 7,023 2,525 15,373 12,778 16,848 Custody fee................................... 15,365 4,157 16,192 18,076 10,393 Audit fee..................................... 34,068 24,931 30,881 29,759 23,878 Registration fee.............................. 160,914 142,955 129,537 351,684 69,559 Other expenses................................ 99,898 22,424 69,090 164,641 94,430 ------------ ----------- ------------ ------------ ------------ Total Expenses.............................. 2,946,974 299,456 2,355,573 7,947,788 4,661,995 Expenses reimbursed by Advisor................ -- (221,294) -- -- -- Fees waived by Distributor: Class D..................................... (2,012) (644) (1,642) (70,083) -- Fees waived by Advisor: Class A..................................... -- -- -- -- -- Class B..................................... -- -- -- -- -- Class D..................................... -- -- -- -- -- Class Z..................................... -- -- -- -- -- Custody earnings credit....................... (1,575) (47) (91) (6,125) (1,437) ------------ ----------- ------------ ------------ ------------ Net Expenses.................................. 2,943,387 77,471 2,353,840 7,871,580 4,660,558 ------------ ----------- ------------ ------------ ------------ NET INVESTMENT INCOME (LOSS)..................... 13,690,036 430,023 14,184,403 50,179,150 3,560,546 ------------ ----------- ------------ ------------ ------------
See Accompanying Notes to Financial Statements 136-137 Spread STATEMENTS OF OPERATIONS - -------------------------------------------------------------------------------- COLUMBIA FUNDS FOR THE PERIOD ENDED AUGUST 31, 2003 (a)
COMMON INTERNATIONAL MID CAP SMALL CAP STOCK GROWTH STOCK GROWTH GROWTH FUND FUND FUND FUND FUND ------------ ------------ ------------- ------------ ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FOREIGN CURRENCY AND FOREIGN CAPITAL GAINS TAX: Net realized gain (loss) on: Investments................................ $(10,351,264) $ 6,034,740 $ (4,703,618) $ 17,148,448 $ 29,590,977 Foreign currency transactions.............. -- -- 34,055 -- -- ------------ ------------ ------------- ------------ ------------ Net realized gain (loss)................ (10,351,264) 6,034,740 (4,669,563) 17,148,448 29,590,977 ------------ ------------ ------------- ------------ ------------ Change in net unrealized appreciation /depreciation on: Investments................................ 70,348,296 138,988,772 33,308,489 179,938,855 124,510,064 Foreign currency translations.............. -- -- (121,751) -- -- Foreign capital gains tax.................. -- -- (373,255) -- -- ------------ ------------ ------------- ------------ ------------ Net change in net unrealized appreciation/depreciation................ 70,348,296 138,988,772 32,813,483 179,938,855 124,510,064 ------------ ------------ ------------- ------------ ------------ Net gain (loss).................................. 59,997,032 145,023,512 28,143,920 197,087,303 154,101,041 ------------ ------------ ------------- ------------ ------------ NET INCREASE RESULTING FROM OPERATIONS .......... $ 61,503,469 $144,955,631 $ 29,429,531 $192,198,275 $150,342,864 ============ ============ ============= ============ ============
REAL ESTATE STRATEGIC SHORT TERM EQUITY TECHNOLOGY INVESTOR BALANCED BOND FUND FUND FUND FUND FUND ------------ ----------- ------------ ------------ ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FOREIGN CURRENCY AND FOREIGN CAPITAL GAINS TAX: Net realized gain (loss) on: Investments................................ $ 8,176,522 $ 3,262,715 $ 1,251,311 $ (2,740,428) $ 1,411,670 Foreign currency transactions.............. -- -- 2,900 -- -- ------------ ----------- ------------ ------------ ------------ Net realized gain (loss)................ 8,176,522 3,262,715 1,254,211 (2,740,428) 1,411,670 ------------ ----------- ------------ ------------ ------------ Change in net unrealized appreciation /depreciation on: Investments................................ 124,974,925 2,813,873 47,456,926 58,617,792 (5,882,484) Foreign currency translations.............. -- -- 75 -- -- Foreign capital gains tax.................. -- -- -- -- -- ------------ ----------- ------------ ------------ ------------ Net change in net unrealized appreciation/depreciation................ 124,974,925 2,813,873 47,457,001 58,617,792 (5,882,484) ------------ ----------- ------------ ------------ ------------ Net gain (loss).................................. 133,151,447 6,076,588 48,711,212 55,877,364 (4,470,814) ------------ ----------- ------------ ------------ ------------ NET INCREASE RESULTING FROM OPERATIONS .......... $149,769,896 $ 5,979,130 $ 50,001,311 $ 64,501,178 $ 2,843,539 ============ =========== ============ ============ ============
FIXED NATIONAL OREGON INCOME MUNICIPAL MUNICIPAL DAILY SECURITIES BOND BOND HIGH YIELD INCOME FUND FUND FUND FUND COMPANY ------------ ----------- ------------ ------------ ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FOREIGN CURRENCY AND FOREIGN CAPITAL GAINS TAX: Net realized gain (loss) on: Investments................................ $ 9,807,289 $ 56,187 $ 3,354,784 $ 2,667,555 $ -- Foreign currency transactions.............. -- -- -- -- -- ------------ ----------- ------------ ------------ ------------ Net realized gain (loss)................ 9,807,289 56,187 3,354,784 2,667,555 -- ------------ ----------- ------------ ------------ ------------ Change in net unrealized appreciation /depreciation on: Investments................................ (17,070,804) (330,997) (13,131,352) 7,100,037 -- Foreign currency translations.............. -- -- -- -- -- Foreign capital gains tax.................. -- -- -- -- -- ------------ ----------- ------------ ------------ ------------ Net change in net unrealized appreciation/depreciation................ (17,070,804) (330,997) (13,131,352) 7,100,037 -- ------------ ----------- ------------ ------------ ------------ Net gain (loss).................................. (7,263,515) (274,810) (9,776,568) 9,767,592 -- ------------ ----------- ------------ ------------ ------------ NET INCREASE RESULTING FROM OPERATIONS .......... $ 6,426,521 $ 155,213 $ 4,407,835 $ 59,946,742 $ 3,560,546 ============ =========== ============ ============ ============
(a) The Funds have changed their fiscal year end from December 31 to August 31. See Accompanying Notes to Financial Statements 138-139 Spread STATEMENTS OF OPERATIONS - -------------------------------------------------------------------------------- COLUMBIA FUNDS FOR THE YEAR ENDED DECEMBER 31, 2002
COMMON INTERNATIONAL MID CAP SMALL CAP STOCK GROWTH STOCK GROWTH GROWTH FUND FUND FUND FUND FUND ------------ ------------ ------------- ------------ ------------ NET INVESTMENT INCOME: INCOME: Interest...................................... $ 229,515 $ 449,657 $ 114,715 $ 949,650 $ 681,219 Dividends .................................... 6,711,144 7,349,063 2,157,855 1,644,758 1,321,481 Foreign withholding tax....................... (18,265) (10,874) (91,099) (3,053) (2,089) ------------ ------------ ------------- ------------ ------------ Total income .............................. 6,922,394 7,787,846 2,181,471 2,591,355 2,000,611 ------------ ------------ ------------- ------------ ------------ EXPENSES: Investment management fee..................... 3,238,954 5,819,523 1,375,061 6,341,031 5,936,461 Distribution fee: Class B.................................... 69 60 13,000 1,449 -- Class D.................................... 22 21 677 255 -- Class G.................................... -- 3,772 -- 274 -- Service fee: Class A.................................... 1 486 7,932 165 -- Class B.................................... 23 20 4,334 483 -- Class D.................................... 7 7 226 85 -- Class G.................................... -- 4,689 -- 126 -- Class T.................................... -- -- -- 4,340 -- Transfer agent fee: Class A.................................... 1 640 14,203 411 -- Class B.................................... 33 14 27,810 1,716 -- Class D.................................... 9 6 1,896 223 -- Class G.................................... -- 2,860 -- 365 -- Class T.................................... -- -- -- 7,348 -- Class Z.................................... 1,046,415 1,789,843 473,231 1,238,675 1,088,066 Pricing and bookkeeping fees.................. 59,296 64,564 45,673 48,716 41,111 Director's fees............................... 6,703 23,235 1,405 7,892 5,650 Custody fee................................... 57,599 89,652 117,990 58,398 119,978 Registration fee.............................. 28,103 59,990 24,550 96,632 48,305 Reports to shareholders....................... 120,051 218,259 60,152 129,814 41,000 Other expenses................................ 59,421 60,150 108,722 51,651 75,012 ------------ ------------ ------------- ------------ ------------ Total Expenses............................. 4,616,707 8,137,791 2,276,862 7,990,049 7,355,583 Expenses reimbursed by Advisor................ -- -- -- -- -- Fees waived by Distributor: Class D.................................... -- -- -- -- -- Fees waived by Advisor: Class A.................................... -- -- -- (7) -- Class B.................................... -- -- (1,907) (232) -- Class D.................................... -- -- (677) (30) -- Class G.................................... -- -- -- -- -- Class T.................................... -- -- -- -- -- Class Z.................................... -- -- (28,388) (53,363) -- Custody earnings credit....................... (8,314) (15,433) (4,016) (8,834) (5,412) ------------ ------------ ------------- ------------ ------------ Net Expenses.................................. 4,608,393 8,122,358 2,241,874 7,927,583 7,350,171 ------------ ------------ ------------- ------------ ------------ NET INVESTMENT INCOME (LOSS) .................... 2,314,001 (334,512) (60,403) (5,336,228) (5,349,560) ------------ ------------ ------------- ------------ ------------
REAL ESTATE STRATEGIC SHORT TERM EQUITY TECHNOLOGY INVESTOR BALANCED BOND FUND FUND FUND FUND FUND ------------ ---------- ------------ ------------ ------------ NET INVESTMENT INCOME: INCOME: Interest...................................... $ 930,645 $ 31,974 $ 1,027,689 $ 20,569,722 $ 4,691,435 Dividends .................................... 39,529,407 8,964 3,593,016 5,952,089 -- Foreign withholding tax....................... -- (31) (27,839) (18,441) -- ------------ ---------- ------------ ------------ ------------ Total income .............................. 40,460,052 40,907 4,592,866 26,503,370 4,691,435 ------------ ---------- ------------ ------------ ------------ EXPENSES: Investment management fee..................... 5,602,888 98,750 2,087,191 4,095,196 506,173 Distribution fee: Class B.................................... 594 1 2,732 309 3,368 Class D.................................... 252 1 443 269 3,336 Class G.................................... -- -- -- -- 771 Service fee: Class A.................................... 146 1 21,940 18 877 Class B.................................... 198 1 911 103 1,123 Class D.................................... 84 1 148 90 1,113 Class G.................................... -- -- -- -- 178 Class T.................................... -- -- -- -- 2,924 Transfer agent fee: Class A.................................... 461 1 11,499 20 1,019 Class B.................................... 617 1 2,822 116 1,342 Class D.................................... 262 1 342 100 1,229 Class G.................................... -- -- -- -- 848 Class T.................................... -- -- -- -- 14,198 Class Z.................................... 1,097,605 68,283 374,745 1,162,975 107,163 Pricing and bookkeeping fees.................. 56,126 29,778 30,577 83,151 34,964 Director's fees............................... 5,834 100 1,667 9,537 16,916 Custody fee................................... 46,397 16,384 62,349 73,391 12,842 Registration fee.............................. 79,025 13,477 35,326 27,365 48,629 Reports to shareholders....................... 109,881 21,065 41,058 187,492 25,448 Other expenses................................ 69,201 32,788 52,893 79,594 -- ------------ ---------- ------------ ------------ ------------ Total Expenses............................. 7,069,571 280,633 2,726,643 5,719,726 784,461 Expenses reimbursed by Advisor................ -- (116,580) -- -- (23,013) Fees waived by Distributor: Class D.................................... -- -- -- -- (2,670) Fees waived by Advisor: Class A.................................... -- -- -- -- -- Class B.................................... -- -- (838) -- -- Class D.................................... -- -- (89) -- -- Class G.................................... -- -- -- -- -- Class T.................................... -- -- -- -- -- Class Z.................................... -- -- (10,434) -- -- Custody earnings credit....................... (4,979) (578) (2,643) (10,542) (3,853) ------------ ---------- ------------ ------------ ------------ Net Expenses.................................. 7,064,592 163,475 2,712,639 5,709,184 754,925 ------------ ---------- ------------ ------------ ------------ NET INVESTMENT INCOME (LOSS) .................... 33,395,460 (122,568) 1,880,227 20,794,186 3,936,510 ------------ ---------- ------------ ------------ ------------
FIXED NATIONAL OREGON INCOME MUNICIPAL MUNICIPAL DAILY SECURITIES BOND BOND HIGH YIELD INCOME FUND FUND FUND FUND COMPANY ------------ ----------- ------------ ------------ ------------ NET INVESTMENT INCOME: INCOME: Interest...................................... $ 27,993,729 $ 700,337 $ 25,331,023 $ 32,819,203 $ 21,497,684 Dividends .................................... -- -- -- -- -- Foreign withholding tax....................... -- -- -- (66,207) -- ------------ ----------- ------------ ------------ ------------ Total income .............................. 27,993,729 700,337 25,331,023 32,752,996 21,497,684 ------------ ----------- ------------ ------------ ------------ EXPENSES: Investment management fee..................... 2,477,847 73,374 2,513,517 2,629,803 5,671,913 Distribution fee: Class B.................................... 716 45 285 9,437 -- Class D.................................... 250 35 378 9,091 -- Class G.................................... -- -- -- -- -- Service fee: Class A.................................... 94 12 68 4,520 -- Class B.................................... 239 15 95 3,146 -- Class D.................................... 83 12 126 3,030 -- Class G.................................... -- -- -- -- -- Class T.................................... -- -- -- -- -- Transfer agent fee: Class A.................................... 3 7 35 8,345 -- Class B.................................... 8 9 51 5,748 -- Class D.................................... 3 6 70 5,325 -- Class G.................................... -- -- -- -- -- Class T.................................... -- -- -- -- -- Class Z.................................... 530,899 6,676 231,748 444,304 1,167,436 Pricing and bookkeeping fees.................. 55,757 32,316 62,828 50,847 42,461 Director's fees............................... 14,310 5,227 659 2,502 11,916 Custody fee................................... 40,354 3,213 25,443 29,635 213,473 Registration fee.............................. 68,241 8,610 13,838 68,721 38,542 Reports to shareholders....................... 38,656 11,766 26,933 46,856 198,555 Other expenses................................ 100,130 27,747 50,598 61,857 48,626 ------------ ----------- ------------ ------------ ------------ Total Expenses............................. 3,327,590 169,070 2,926,672 3,383,167 7,392,922 Expenses reimbursed by Advisor................ -- (70,759) -- -- -- Fees waived by Distributor: Class D.................................... (50) (16) (176) (1,818) -- Fees waived by Advisor: Class A.................................... -- -- -- -- -- Class B.................................... -- -- -- -- -- Class D.................................... -- -- -- -- -- Class G.................................... -- -- -- -- -- Class T.................................... -- -- -- -- -- Class Z.................................... -- -- -- -- -- Custody earnings credit....................... (4,380) (1,370) (8,814) (5,818) (37,293) ------------ ----------- ------------ ------------ ------------ Net Expenses.................................. 3,323,160 96,925 2,917,682 3,375,531 7,355,629 ------------ ----------- ------------ ------------ ------------ NET INVESTMENT INCOME (LOSS) .................... 24,670,569 603,412 22,413,341 29,377,465 14,142,055 ------------ ----------- ------------ ------------ ------------
See Accompanying Notes to Financial Statements 140-141 Spread STATEMENTS OF OPERATIONS - -------------------------------------------------------------------------------- COLUMBIA FUNDS FOR THE YEAR ENDED DECEMBER 31, 2002
COMMON INTERNATIONAL MID CAP SMALL CAP STOCK GROWTH STOCK GROWTH GROWTH FUND FUND FUND FUND FUND ------------- ------------ ------------- ------------- ------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FOREIGN CURRENCY AND FOREIGN CAPITAL GAINS TAX: Net realized gain (loss) on: Investments ................................. $ (76,671,127) $(234,361,212) $ (16,827,005) $ (89,710,944) $(116,601,064) Foreign currency transactions .............. -- -- 459,446 -- -- Foreign capital gains tax ................... -- -- (83,377) -- -- ------------- ------------- ------------- ------------- ------------- Net realized gain (loss) .................. (76,671,127) (234,361,212) (16,450,936) (89,710,944) (116,601,064) ------------- ------------- ------------- ------------- ------------- Change in net unrealized appreciation /depreciation on: Investments ................................. (87,529,297) (189,831,805) (5,185,756) (104,900,709) (70,989,821) Foreign currency translations ............... -- -- 40,189 -- -- ------------- ------------- ------------- ------------- ------------- Net change in net unrealized appreciation or depreciation.............. (87,529,297) (189,831,805) (5,145,567) (104,900,709) (70,989,821) ------------- ------------- ------------- ------------- ------------- Net gain (loss) ................................ (164,200,424) (424,193,017) (21,596,503) (194,611,653) (187,590,885) ------------- ------------- ------------- ------------- ------------- NET INCREASE (DECREASE) RESULTING FROM OPERATIONS .............................. $(161,886,423) $(424,527,529) $ (21,656,906) $(199,947,881) $(192,940,445) ============= ============= ============= ============= =============
REAL ESTATE STRATEGIC SHORT TERM EQUITY TECHNOLOGY INVESTOR BALANCED BOND FUND FUND FUND FUND FUND ------------ ----------- ------------- ------------- ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FOREIGN CURRENCY AND FOREIGN CAPITAL GAINS TAX: Net realized gain (loss) on: Investments ................................. $(12,684,181) $(4,188,861) $ (27,776,699) $ (71,176,504) $ (5,253) Foreign currency transactions .............. -- -- (81) -- -- Foreign capital gains tax ................... -- -- -- -- -- ------------ ----------- ------------- ------------- ------------ Net realized gain (loss) .................. (12,684,181) (4,188,861) (27,776,780) (71,176,504) (5,253) ------------ ----------- ------------- ------------- ------------ Change in net unrealized appreciation /depreciation on: Investments ................................. (5,589,540) (748,526) (13,657,736) (68,893,518) 2,802,185 Foreign currency translations ............... -- -- (151) -- -- ------------ ----------- ------------- ------------- ------------ Net change in net unrealized appreciation or depreciation.............. (5,589,540) (748,526) (13,657,887) (68,893,518) 2,802,185 ------------ ----------- ------------- ------------- ------------ Net gain (loss) ................................ (18,273,721) (4,937,387) (41,434,667) (140,070,022) 2,796,932 ------------ ----------- ------------- ------------- ------------ NET INCREASE (DECREASE) RESULTING FROM OPERATIONS .............................. $ 15,121,739 $(5,059,955) $ (39,554,440) $(119,275,836) $ 6,733,442 ============ =========== ============= ============= ============
FIXED NATIONAL OREGON INCOME MUNICIPAL MUNICIPAL DAILY SECURITIES BOND BOND HIGH YIELD INCOME FUND FUND FUND FUND COMPANY ------------ ----------- ------------ ------------ ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FOREIGN CURRENCY AND FOREIGN CAPITAL GAINS TAX: Net realized gain (loss) on: Investments ................................. $ (2,558,516) $ 88,597 $ 3,932,577 $(27,771,338) $ -- Foreign currency transactions .............. -- -- -- -- -- Foreign capital gains tax ................... -- -- -- -- -- ------------ ----------- ------------ ------------ ------------ Net realized gain (loss) .................. (2,558,516) 88,597 3,932,577 (27,771,338) -- ------------ ----------- ------------ ------------ ------------ Change in net unrealized appreciation /depreciation on: Investments ................................. 14,601,556 631,224 17,775,246 9,777,957 -- Foreign currency translations ............... -- -- -- -- -- ------------ ----------- ------------ ------------ ------------ Net change in net unrealized appreciation or depreciation.............. 14,601,556 631,224 17,775,246 9,777,957 -- ------------ ----------- ------------ ------------ ------------ Net gain (loss) ................................ 12,043,040 719,821 21,707,823 (17,993,381) -- ------------ ----------- ------------ ------------ ------------ NET INCREASE (DECREASE) RESULTING FROM OPERATIONS .............................. $ 36,713,609 $ 1,323,233 $ 44,121,164 $ 11,384,084 $ 14,142,055 ============ =========== ============ ============ ============
See Accompanying Notes to Financial Statements 142-143 Spread STATEMENTS OF CHANGES IN NET ASSETS - -------------------------------------------------------------------------------- COLUMBIA FUNDS
COMMON STOCK FUND ----------------------------------------------- PERIOD YEAR YEAR ENDED ENDED ENDED AUGUST 31, DECEMBER 31, DECEMBER 31, 2003 (a) 2002 (b) 2001 ------------- ------------- ------------- OPERATIONS: Net investment income (loss)..................................... $ 1,506,437 $ 2,314,001 $ 2,393,365 Net realized gain (loss) on investments, foreign currency transactions and foreign capital gains tax.................... (10,351,264) (76,671,127) (53,093,579) Net change in unrealized appreciation/depreciation on investments, foreign currency translations and foreign capital gains tax................................. 70,348,296 (87,529,297) (104,551,117) -------------- -------------- ------------- Net increase (decrease) resulting from operations................ 61,503,469 (161,886,423) (155,251,331) -------------- -------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A....................................................... -- (24) -- Class B....................................................... -- (365) -- Class D....................................................... -- (105) -- Class Z....................................................... -- (2,325,116) (2,384,042) From net realized gains: Class Z....................................................... -- -- (568,973) Return of capital: Class Z....................................................... -- -- -- -------------- -------------- ------------- Total distributions to shareholders.............................. -- (2,325,610) (2,953,015) -------------- -------------- ------------- NET CAPITAL SHARE TRANSACTIONS...................................... (49,688,127) (100,375,770) (55,532,294) -------------- -------------- ------------- REDEMPTION FEES..................................................... -- -- -- -------------- -------------- ------------- Net increase (decrease) in net assets............................... 11,815,342 (264,587,803) (213,736,640) NET ASSETS: Beginning of period.............................................. 416,809,376 681,397,179 895,133,819 -------------- -------------- ------------- End of period................................................... $ 428,624,718 $ 416,809,376 $ 681,397,179 ============== ============== ============= Undistributed (overdistributed) net investment income at end of period................................................ $ 1,506,446 $ -- $ 6,772 ============== ============== =============
GROWTH FUND ------------------------------------------------- PERIOD YEAR YEAR ENDED ENDED ENDED AUGUST 31, DECEMBER 31, DECEMBER 31, 2003 (a) 2002 (c) 2001 ------------- ------------- -------------- OPERATIONS: Net investment income (loss)..................................... $ (67,881) $ (334,512) $ (1,006,495) Net realized gain (loss) on investments, foreign currency transactions and foreign capital gains tax.................... 6,034,740 (234,361,212) (197,532,848) Net change in unrealized appreciation/depreciation on investments, foreign currency translations and foreign capital gains tax................................. 138,988,772 (189,831,805) (197,525,517) ------------- -------------- -------------- Net increase (decrease) resulting from operations................ 144,955,631 (424,527,529) (396,064,860) ------------- -------------- -------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A....................................................... -- -- -- Class B....................................................... -- -- -- Class D....................................................... -- -- -- Class Z....................................................... -- -- -- From net realized gains: Class Z....................................................... -- -- (6,365,332) Return of capital: Class Z....................................................... -- -- -- ------------- -------------- -------------- Total distributions to shareholders.............................. -- -- (6,365,332) ------------- -------------- -------------- NET CAPITAL SHARE TRANSACTIONS...................................... (43,866,493) (72,669,754) (190,952,344) ------------- -------------- -------------- REDEMPTION FEES..................................................... -- -- -- ------------- -------------- -------------- Net increase (decrease) in net assets............................... 101,089,138 (497,197,283) (593,382,536) NET ASSETS: Beginning of period.............................................. 828,647,114 1,325,844,397 1,919,226,933 ------------- -------------- -------------- End of period................................................... $ 929,736,252 $ 828,647,114 $1,325,844,397 ============= ============== ============== Undistributed (overdistributed) net investment income at end of period................................................ $ (1,289) $ -- $ -- ============= ============== ==============
INTERNATIONAL STOCK FUND ------------------------------------------------ PERIOD YEAR YEAR ENDED ENDED ENDED AUGUST 31, DECEMBER 31, DECEMBER 31, 2003 (a) 2002 (b) 2001 ------------- ------------- ------------- OPERATIONS: Net investment income (loss)..................................... $ 1,285,611 $ (60,403) $ 95,519 Net realized gain (loss) on investments, foreign currency transactions and foreign capital gains tax.................... (4,669,563) (16,450,936) (25,454,741) Net change in unrealized appreciation/depreciation on investments, foreign currency translations and foreign capital gains tax................................. 32,813,483 (5,145,567) (7,034,708) ------------- ------------- ------------- Net increase (decrease) resulting from operations................ 29,429,531 (21,656,906) (32,393,930) ------------- ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A....................................................... -- -- -- Class B....................................................... -- -- -- Class D....................................................... -- -- -- Class Z....................................................... -- (102,850) -- From net realized gains: Class Z....................................................... -- -- -- Return of capital: Class Z....................................................... -- (403,799) (131,448) ------------- -------------- ------------- Total distributions to shareholders.............................. -- (506,649) (131,448) ------------- -------------- ------------- NET CAPITAL SHARE TRANSACTIONS...................................... 76,764,211 61,510,684 (7,165,160) ------------- ------------- ------------- REDEMPTION FEES..................................................... 164,843 -- -- ------------- ------------- ------------- Net increase (decrease) in net assets............................... 106,358,585 39,347,129 (39,690,538) NET ASSETS: Beginning of period.............................................. 174,972,974 135,625,845 175,316,383 ------------- ------------- ------------- End of period................................................... $ 281,331,559 $ 174,972,974 $ 135,625,845 ============= ============= ============= Undistributed (overdistributed) net investment income at end of period................................................ $ 1,284,980 $ (14,405) $ (298,209) ============= ============= =============
MID CAP GROWTH FUND ------------------------------------------------- PERIOD YEAR YEAR ENDED ENDED ENDED AUGUST 31, DECEMBER 31, DECEMBER 31, 2003 (a) 2002 (d) 2001 -------------- ------------- -------------- OPERATIONS: Net investment income (loss)..................................... $ (4,889,028) $ (5,336,228) $ (4,280,083) Net realized gain (loss) on investments, foreign currency transactions and foreign capital gains tax.................... 17,148,448 (89,710,944) (128,113,140) Net change in unrealized appreciation/depreciation on investments, foreign currency translations and foreign capital gains tax................................. 179,938,855 (104,900,709) (102,085,000) -------------- ------------- -------------- Net increase (decrease) resulting from operations................ 192,198,275 (199,947,881) (234,478,223) -------------- ------------- -------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A....................................................... -- -- -- Class B....................................................... -- -- -- Class D....................................................... -- -- -- Class Z....................................................... -- -- -- From net realized gains: Class Z....................................................... -- -- (36,110,869) Return of capital: Class Z....................................................... -- -- -- -------------- ------------- -------------- Total distributions to shareholders.............................. -- -- (36,110,869) -------------- ------------- -------------- NET CAPITAL SHARE TRANSACTIONS...................................... 7,917,882 252,934,343 (38,864,440) -------------- ------------- -------------- REDEMPTION FEES..................................................... -- -- -- -------------- ------------- -------------- Net increase (decrease) in net assets............................... 200,116,157 52,986,462 (309,453,532) NET ASSETS: Beginning of period.............................................. 839,057,696 786,071,234 1,095,524,766 -------------- ------------- -------------- End of period................................................... $1,039,173,853 $ 839,057,696 $ 786,071,234 ============== ============= ============== Undistributed (overdistributed) net investment income at end of period................................................ $ (2,185) $ (3,410) $ -- ============== ============= ==============
SMALL CAP GROWTH FUND ------------------------------------------------- PERIOD YEAR YEAR ENDED ENDED ENDED AUGUST 31, DECEMBER 31, DECEMBER 31, 2003 (a) 2002 2001 -------------- ------------- -------------- OPERATIONS: Net investment income (loss)..................................... $ (3,758,177) $ (5,349,560) $ (3,669,866) Net realized gain (loss) on investments, foreign currency transactions and foreign capital gains tax.................... 29,590,977 (116,601,064) (102,071,551) Net change in unrealized appreciation/depreciation on investments, foreign currency translations and foreign capital gains tax................................. 124,510,064 (70,989,821) 29,412,742 -------------- ------------- -------------- Net increase (decrease) resulting from operations................ 150,342,864 (192,940,445) (76,328,675) -------------- ------------- -------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A....................................................... -- -- -- Class B....................................................... -- -- -- Class D....................................................... -- -- -- Class Z....................................................... -- -- -- From net realized gains: Class Z....................................................... -- -- -- Return of capital: Class Z....................................................... -- -- -- -------------- ------------- -------------- Total distributions to shareholders.............................. -- -- -- -------------- ------------- -------------- NET CAPITAL SHARE TRANSACTIONS...................................... (5,758,359) 68,005,564 175,324,624 -------------- ------------- -------------- REDEMPTION FEES..................................................... -- -- -- -------------- ------------- -------------- Net increase (decrease) in net assets............................... 144,584,505 (124,934,881) 98,995,949 NET ASSETS: Beginning of period.............................................. 493,031,068 617,965,949 518,970,000 -------------- ------------- -------------- End of period................................................... $ 637,615,573 $ 493,031,068 $ 617,965,949 ============== ============= ============== Undistributed (overdistributed) net investment income at end of period................................................ $ 180,997 $ 180,997 $ -- ============== ============= ==============
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Effective November 1, 2002, the Fund began offering four classes of shares: Class A, Class B, Class D and Class Z shares. Prior to November 1, 2002, the Fund was single class, which was subsequently named Class Z shares. (c) Effective November 1, 2002, the Fund began offering five classes of shares: Class A, Class B, Class D, Class G and Class Z shares. Prior to November 1, 2002, the Fund was single class, which was subsequently named Class Z shares. (d) Effective November 1, 2002, the Fund began offering six classes of shares: Class A, Class B, Class D, Class G, Class T and Class Z shares. Prior to November 1, 2002, the Fund was single class, which was subsequently named Class Z shares. See Accompanying Notes to Financial Statements 144-145 Spread STATEMENTS OF CHANGES IN NET ASSETS - -------------------------------------------------------------------------------- COLUMBIA FUNDS
REAL ESTATE EQUITY FUND ------------------------------------------------ PERIOD YEAR YEAR ENDED ENDED ENDED AUGUST 31, DECEMBER 31, DECEMBER 31, 2003 (a) 2002 (b) 2001 -------------- ------------- ------------- OPERATIONS: Net investment income (loss) ..................................... $ 16,618,449 $ 33,395,460 $ 23,283,934 Net realized gain (loss) on investments and foreign currency transactions ........................................... 8,176,522 (12,684,181) (6,107,580) Net change in unrealized appreciation/depreciation on investments and foreign currency translations ................ 124,974,925 (5,589,540) 11,518,503 -------------- ------------- ------------- Net increase (decrease) resulting from operations ................ 149,769,896 15,121,739 28,694,857 -------------- ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A ....................................................... (64,007) (11,804) -- Class B ....................................................... (26,629) (12,009) -- Class D ....................................................... (18,629) (4,519) -- Class G ....................................................... -- -- -- Class T ....................................................... -- -- -- Class Z ....................................................... (11,791,170) (29,889,702) (21,221,990) From net realized gains: Class Z ....................................................... -- -- -- Return of capital: Class Z ....................................................... -- (3,915,328) (2,074,000) -------------- ------------- ------------- Total distributions to shareholders .............................. (11,900,435) (33,833,362) (23,295,990) -------------- ------------- ------------- NET CAPITAL SHARE TRANSACTIONS ..................................... (9,506,449) 174,112,297 179,426,753 -------------- ------------- ------------- Net increase (decrease) in net assets .............................. 128,363,012 155,400,674 184,825,620 NET ASSETS: Beginning of period .............................................. 776,990,508 621,589,834 436,764,214 -------------- ------------- ------------- End of period .................................................... $ 905,353,520 $ 776,990,508 $ 621,589,834 ============== ============= ============= Undistributed (overdistributed) net investment income at end of period .................................................. $ 4,718,014 $ 5,750,071 $ -- ============== ============= =============
TECHNOLOGY FUND ------------------------------------------------ PERIOD YEAR YEAR ENDED ENDED ENDED AUGUST 31, DECEMBER 31, DECEMBER 31, 2003 (a) 2002 (b) 2001 ------------ ------------ ------------- OPERATIONS: Net investment income (loss) ..................................... $ (97,458) $ (122,568) $ (129,446) Net realized gain (loss) on investments and foreign currency transactions .......................................... 3,262,715 (4,188,861) (4,781,663) Net change in unrealized appreciation/depreciation on investments and foreign currency translations ............... 2,813,873 (748,526) 1,379,718 ------------ ------------ ------------ Net increase (decrease) resulting from operations ................ 5,979,130 (5,059,955) (3,531,391) ------------ ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A ....................................................... -- -- -- Class B ....................................................... -- -- -- Class D ....................................................... -- -- -- Class G ....................................................... -- -- -- Class T ....................................................... -- -- -- Class Z ....................................................... -- -- -- From net realized gains: Class Z ....................................................... -- -- -- Return of capital: Class Z ....................................................... -- -- -- ------------ ------------ ------------ Total distributions to shareholders ............................ -- -- -- ------------ ------------ ------------ NET CAPITAL SHARE TRANSACTIONS .................................... 7,256,837 2,738,412 9,588,998 ------------ ------------ ------------ Net increase (decrease) in net assets ............................. 13,235,967 (2,321,543) 6,057,607 NET ASSETS: Beginning of period .............................................. 8,063,520 10,385,063 4,327,456 ------------ ------------ ------------ End of period ................................................... $ 21,299,487 $ 8,063,520 $ 10,385,063 ============ ============ ============ Undistributed (overdistributed) net investment income at end of period .................................................. $ -- $ -- $ -- ============ ============ ============
STRATEGIC INVESTOR FUND ------------------------------------------------ PERIOD YEAR YEAR ENDED ENDED ENDED AUGUST 31, DECEMBER 31, DECEMBER 31, 2003 (a) 2002 (b) 2001 ------------ ------------ ------------- OPERATIONS: Net investment income (loss) ..................................... $ 1,290,099 $ 1,880,227 $ 513,914 Net realized gain (loss) on investments and foreign currency transactions .......................................... 1,254,211 (27,776,780) (39,305) Net change in unrealized appreciation/depreciation on investments and foreign currency translations ............... 47,457,001 (13,657,887) 14,416,240 ------------ ------------ ------------- Net increase (decrease) resulting from operations ................ 50,001,311 (39,554,440) 14,890,849 ------------ ------------ ------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A ........................................................ -- -- -- Class B ........................................................ -- -- -- Class D ........................................................ -- -- -- Class G ........................................................ -- -- -- Class T ........................................................ -- -- -- Class Z ........................................................ -- (1,839,312) (503,110) From net realized gains: Class Z ........................................................ -- (376,144) -- Return of capital: Class Z ........................................................ -- -- -- ------------ ------------ ------------- Total distributions to shareholders .............................. -- (2,215,456) (503,110) ------------ ------------ ------------- NET CAPITAL SHARE TRANSACTIONS ..................................... (24,174,510) 168,107,411 115,589,966 ------------ ------------ ------------- Net increase (decrease) in net assets .............................. 25,826,801 126,337,515 129,977,705 NET ASSETS: Beginning of period .............................................. 265,841,220 139,503,705 9,526,000 ------------ ------------ ------------- End of period .................................................... $291,668,021 $265,841,220 $ 139,503,705 ============ ============ ============= Undistributed (overdistributed) net investment income at end of period ................................................. $ 1,354,437 $ 62,338 $ 1,192 ============ ============ =============
BALANCED FUND -------------------------------------------------- PERIOD YEAR YEAR ENDED ENDED ENDED AUGUST 31, DECEMBER 31, DECEMBER 31, 2003 (a) 2002 (b) 2001 ------------ ------------ --------------- OPERATIONS: Net investment income (loss) ..................................... $ 8,623,814 $ 20,794,186 $ 27,848,891 Net realized gain (loss) on investments and foreign currency transactions .......................................... (2,740,428) (71,176,504) (61,040,549) Net change in unrealized appreciation/depreciation on investments and foreign currency translations ............... 58,617,792 (68,893,518) (51,965,235) ------------- ------------- --------------- Net increase (decrease) resulting from operations ................ 64,501,178 (119,275,836) (85,156,893) ------------- ------------- --------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A ........................................................ (2,855) (693) -- Class B ........................................................ (8,639) (2,254) -- Class D ........................................................ (2,920) (1,798) -- Class G ........................................................ -- -- -- Class T ........................................................ -- -- -- Class Z ........................................................ (6,954,163) (21,201,650) (28,272,449) From net realized gains: Class Z ........................................................ -- -- -- Return of capital: Class Z ........................................................ -- -- -- ------------- ------------- --------------- Total distributions to shareholders .............................. (6,968,577) (21,206,395) (28,272,449) ------------- ------------- --------------- NET CAPITAL SHARE TRANSACTIONS ..................................... (81,831,327) (173,776,980) (29,677,522) ------------- ------------- --------------- Net increase (decrease) in net assets .............................. (24,298,726) (314,259,211) (143,106,864) NET ASSETS: Beginning of period .............................................. 669,490,083 983,749,294 1,126,856,158 ------------- ------------- --------------- End of period .................................................... $ 645,191,357 $ 669,490,083 $ 983,749,294 ============= ============= =============== Undistributed (overdistributed) net investment income at end of period .................................................. $ 1,622,249 $ (355,183) $ (423,558) ============= ============= ===============
SHORT TERM BOND FUND ------------------------------------------------ PERIOD YEAR YEAR ENDED ENDED ENDED AUGUST 31, DECEMBER 31, DECEMBER 31, 2003 (a) 2002 (c) 2001 ------------- ------------- ------------- OPERATIONS: Net investment income (loss) ..................................... $ 7,314,353 $ 3,936,510 $ 2,396,760 Net realized gain (loss) on investments and foreign currency transactions .......................................... 1,411,670 (5,253) 622,536 Net change in unrealized appreciation/depreciation on investments and foreign currency translations ............... (5,882,484) 2,802,185 94,561 ------------- ------------- ------------- Net increase (decrease) resulting from operations ................ 2,843,539 6,733,442 3,113,857 ------------- ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A ........................................................ (300,551) (7,886) -- Class B ........................................................ (163,965) (6,548) -- Class D ........................................................ (153,332) (9,865) -- Class G ........................................................ (19,560) (2,198) -- Class T ........................................................ (449,409) (48,546) -- Class Z ........................................................ (6,343,155) (3,843,068) (2,396,760) From net realized gains: Class Z ........................................................ -- (18,783) (107,979) Return of capital: Class Z ........................................................ -- -- -- ------------- ------------- ------------- Total distributions to shareholders .............................. (7,429,972) (3,936,894) (2,504,739) ------------- ------------- ------------- NET CAPITAL SHARE TRANSACTIONS ..................................... 186,414,680 301,621,677 26,464,147 ------------- ------------- ------------- Net increase (decrease) in net assets .............................. 181,828,247 304,418,225 27,073,265 NET ASSETS: Beginning of period .............................................. 367,347,830 62,929,605 35,856,340 ------------- ------------- ------------- End of period .................................................... $ 549,176,077 $ 367,347,830 $ 62,929,605 ============= ============= ============= Undistributed (overdistributed) net investment income at end of period .................................................. $ 5,674 $ (204,761) $ -- ============= ============= =============
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Effective November 1, 2002, the Fund began offering four classes of shares: Class A, Class B, Class D and Class Z shares. Prior to November 1, 2002, the Fund was single class, which was subsequently named Class Z shares. (c) Effective November 1, 2002, the Fund began offering six classes of shares: Class A, Class B, Class D, Class G, Class T and Class Z shares. Prior to November 1, 2002, the Fund was single class, which was subsequently named Class Z shares. See Accompanying Notes to Financial Statements 146-147 Spread STATEMENTS OF CHANGES IN NET ASSETS - -------------------------------------------------------------------------------- COLUMBIA FUNDS
FIXED INCOME SECURITIES FUND ------------------------------------------------ PERIOD YEAR YEAR ENDED ENDED ENDED AUGUST 31, DECEMBER 31, DECEMBER 31, 2003 (a) 2002 (b) 2001 -------------- ------------- ------------- OPERATIONS: Net investment income............................................. $ 13,690,036 $ 24,670,569 $ 24,965,892 Net realized gain (loss) on investments .......................... 9,807,289 (2,558,516) 6,420,005 Net change in unrealized appreciation/depreciation on investments ................................................. (17,070,804) 14,601,556 1,195,478 -------------- ------------- ------------- Net increase resulting from operations ........................... 6,426,521 36,713,609 32,581,375 -------------- ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A ........................................................ (81,788) (1,157) -- Class B ........................................................ (56,382) (2,638) -- Class D ........................................................ (34,961) (1,013) -- Class Z ........................................................ (14,154,256) (25,339,044) (25,535,189) From net realized gains: Class A......................................................... -- -- -- Class B......................................................... -- -- -- Class D......................................................... -- -- -- Class Z......................................................... -- -- -- -------------- ------------- ------------- Total distributions to shareholders .............................. (14,327,387) (25,343,852) (25,535,189) -------------- ------------- ------------- NET CAPITAL SHARE TRANSACTIONS ..................................... (21,870,137) 73,248,344 79,897,819 -------------- ------------- ------------- Net increase (decrease) in net assets .............................. (29,771,003) 84,618,101 86,944,005 NET ASSETS: Beginning of period ............................................. 550,361,600 465,743,499 378,799,494 -------------- ------------- ------------- End of period.................................................... $ 520,590,597 $ 550,361,600 $ 465,743,499 ============== ============= ============= Undistributed (overdistributed) net investment income at end of period................................................. $ (760,011) $ (885,594) $ (569,297) ============== ============= =============
NATIONAL MUNICIPAL BOND FUND ----------------------------------------------- PERIOD YEAR YEAR ENDED ENDED ENDED AUGUST 31, DECEMBER 31, DECEMBER 31, 2003 (a) 2002 (b) 2001 ------------ ------------ ------------ OPERATIONS: Net investment income............................................. $ 430,023 $ 603,412 $ 531,656 Net realized gain (loss) on investments .......................... 56,187 88,597 83,654 Net change in unrealized appreciation/depreciation on investments ................................................. (330,997) 631,224 (163,394) ------------ ------------ ------------ Net increase resulting from operations ........................... 155,213 1,323,233 451,916 ------------ ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A ........................................................ (6,156) (200) -- Class B ........................................................ (7,532) (232) -- Class D ........................................................ (5,576) (147) -- Class Z ........................................................ (413,051) (598,784) (533,303) From net realized gains: Class A......................................................... (310) (230) -- Class B......................................................... (477) (784) -- Class D......................................................... (337) (220) -- Class Z......................................................... (12,706) (66,172) (25,261) ------------ ------------ ------------ Total distributions to shareholders .............................. (446,145) (666,769) (558,564) ------------ ------------ ------------ NET CAPITAL SHARE TRANSACTIONS ..................................... (584,781) 2,233,945 2,977,494 ------------ ------------ ------------ Net increase (decrease) in net assets .............................. (875,713) 2,890,409 2,870,846 NET ASSETS: Beginning of period ............................................. 16,659,255 13,768,846 10,898,000 ------------ ------------ ------------ End of period.................................................... $ 15,783,542 $ 16,659,255 $ 13,768,846 ============ ============ ============ Undistributed (overdistributed) net investment income at end of period................................................. $ 2,584 $ 4,896 $ (1,647) ============ ============ ============
OREGON MUNICIPAL BOND FUND ----------------------------------------------- PERIOD YEAR YEAR ENDED ENDED ENDED AUGUST 31, DECEMBER 31, DECEMBER 31, 2003 (a) 2002 (b) 2001 ------------- ------------ ------------- OPERATIONS: Net investment income............................................. $ 14,184,403 $ 22,413,341 $ 22,217,485 Net realized gain (loss) on investments .......................... 3,354,784 3,932,577 2,447,215 Net change in unrealized appreciation/depreciation on investments ................................................. (13,131,352) 17,775,246 (3,897,358) ------------- ------------ ------------- Net increase resulting from operations ........................... 4,407,835 44,121,164 20,767,342 ------------- ------------ ------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A ........................................................ (24,517) (932) -- Class B ........................................................ (14,008) (1,094) -- Class D ........................................................ (15,469) (1,673) -- Class Z ........................................................ (14,116,676) (22,348,370) (22,200,818) From net realized gains: Class A......................................................... (1,127) (1,987) -- Class B......................................................... (532) (2,513) -- Class D......................................................... (496) (2,990) -- Class Z......................................................... (299,094) (5,015,648) (1,099,872) ------------- ------------ ------------- Total distributions to shareholders .............................. (14,471,919) (27,375,207) (23,300,690) ------------- ------------ ------------- NET CAPITAL SHARE TRANSACTIONS ..................................... (10,834,612) 1,779,138 57,627,221 ------------- ------------ ------------- Net increase (decrease) in net assets .............................. (20,898,696) 18,525,095 55,093,873 NET ASSETS: Beginning of period ............................................. 510,162,968 491,637,873 436,544,000 ------------- ------------ ------------- End of period.................................................... $ 489,264,272 $510,162,968 $ 491,637,873 ============= ============ ============= Undistributed (overdistributed) net investment income at end of period................................................. $ 141,548 $ 131,976 $ 16,667 ============= ============ =============
HIGH YIELD FUND ------------------------------------------------ PERIOD YEAR YEAR ENDED ENDED ENDED AUGUST 31, DECEMBER 31, DECEMBER 31, 2003 (a) 2002 (b) 2001 -------------- -------------- ------------- OPERATIONS: Net investment income............................................. $ 50,179,150 $ 29,377,465 $ 13,585,926 Net realized gain (loss) on investments .......................... 2,667,555 (27,771,338) (6,978,717) Net change in unrealized appreciation/depreciation on investments ................................................. 7,100,037 9,777,957 2,694,000 -------------- -------------- ------------- Net increase resulting from operations ........................... 59,946,742 11,384,084 9,301,209 -------------- -------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A ........................................................ (4,682,562) (111,753) -- Class B ........................................................ (2,122,494) (63,166) -- Class D ........................................................ (2,591,969) (57,867) -- Class Z ........................................................ (44,079,371) (30,110,118) (13,865,815) From net realized gains: Class A......................................................... -- -- -- Class B......................................................... -- -- -- Class D......................................................... -- -- -- Class Z......................................................... -- -- -- -------------- -------------- ------------- Total distributions to shareholders .............................. (53,476,396) (30,342,904) (13,865,815) -------------- -------------- ------------- NET CAPITAL SHARE TRANSACTIONS ..................................... 806,131,939 551,477,756 145,983,569 -------------- -------------- ------------- Net increase (decrease) in net assets .............................. 812,602,285 532,518,936 141,418,963 NET ASSETS: Beginning of period ............................................. 771,512,777 238,993,841 97,574,878 -------------- -------------- ------------- End of period.................................................... $1,584,115,062 $ 771,512,777 $ 238,993,841 ============== ============== ============= Undistributed (overdistributed) net investment income at end of period................................................. $ (3,743,314) $ (989,027) $ (279,889) ============== ============== =============
DAILY INCOME FUND -------------------------------------------------- PERIOD YEAR YEAR ENDED ENDED ENDED AUGUST 31, DECEMBER 31, DECEMBER 31, 2003 (a) 2002 2001 -------------- -------------- --------------- OPERATIONS: Net investment income............................................. $ 3,560,546 $ 14,142,055 $ 45,229,610 Net realized gain (loss) on investments .......................... -- -- -- Net change in unrealized appreciation/depreciation on investments ................................................. -- -- -- -------------- -------------- --------------- Net increase resulting from operations ........................... 3,560,546 14,142,055 45,229,610 -------------- -------------- --------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A ........................................................ -- -- -- Class B ........................................................ -- -- -- Class D ........................................................ -- -- -- Class Z ........................................................ (3,560,546) (14,142,055) (45,229,610) From net realized gains: Class A......................................................... -- -- -- Class B......................................................... -- -- -- Class D......................................................... -- -- -- Class Z......................................................... -- -- -- -------------- -------------- --------------- Total distributions to shareholders .............................. (3,560,546) (14,142,055) (45,229,610) -------------- -------------- --------------- NET CAPITAL SHARE TRANSACTIONS ..................................... (237,911,017) (117,460,299) 55,384,628 -------------- -------------- --------------- Net increase (decrease) in net assets .............................. (237,911,017) (117,460,299) 55,384,628 NET ASSETS: Beginning of period ............................................. 1,136,074,898 1,253,535,197 1,198,150,569 -------------- -------------- --------------- End of period.................................................... $ 898,163,881 $1,136,074,898 $ 1,253,535,197 ============== ============== =============== Undistributed (overdistributed) net investment income at end of period................................................. $ -- $ -- $ -- ============== ============== ===============
(a) The Fund has changed its fiscal year end from December 31 to August 31. (b) Effective November 1, 2002, the Fund began offering four classes of shares: Class A, Class B, Class D and Class Z shares. Prior to November 1, 2002, the Fund was single class, which was subsequently named Class Z shares. See Accompanying Notes to Financial Statements 148-149 Spread NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 1 -- ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES The Columbia Funds (the "Funds") consist of the following: Columbia Common Stock Fund Columbia Growth Fund Columbia International Stock Fund Columbia Mid Cap Growth Fund Columbia Small Cap Growth Fund Columbia Real Estate Equity Fund Columbia Technology Fund Columbia Strategic Investor Fund Columbia Balanced Fund Columbia Short Term Bond Fund Columbia Fixed Income Securities Fund Columbia National Municipal Bond Fund Columbia Oregon Municipal Bond Fund Columbia High Yield Fund Columbia Daily Income Company All Funds are open-end investment companies registered under the Investment Company Act of 1940, as amended, and are diversified except for the Columbia Real Estate Equity Fund, Columbia Technology Fund and Columbia Oregon Municipal Bond Fund, which are non-diversified. Effective October 13, 2003, the Columbia Special Fund, Columbia Small Cap Fund and Columbia Strategic Value Fund were renamed Columbia Mid Cap Growth Fund, Columbia Small Cap Growth Fund and Columbia Strategic Investor Fund, respectively. Effective November 1, 2002, each of the Funds, except the Columbia Growth Fund, Columbia Mid Cap Growth Fund, Columbia Small Cap Growth Fund, Columbia Short Term Bond Fund and Columbia Daily Income Company, offer four classes of shares: Class A, Class B, Class D and Class Z. The Columbia Small Cap Growth Fund and Columbia Daily Income Company offer only Class Z shares. The Columbia Growth Fund offers five classes of shares: Class A, Class B, Class D, Class G and Class Z shares. The Columbia Mid Cap Growth Fund and Columbia Short Term Bond Fund offer six classes of shares: Class A, Class B, Class D, Class G, Class T and Class Z shares. Prior to November 1, 2002, each Fund was single class, which was subsequently named Class Z shares. Effective January 29, 2003, the Board of Directors approved a change in the fiscal year end of the Funds from December 31 to August 31. 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 redemptions made within eighteen months of an original purchase of $1 million to $25 million of Class A and Class T shares purchased without an initial sales charge. Class B shares are subject to a CDSC. Class B shares will convert to Class A shares in three, four or eight years after purchase, depending on the program under which shares were purchased. Class D shares are sold with a front end sales charge and a 1.00% CDSC on redemptions made within one year after purchase. Class G shares are subject to a CDSC. Class G shares will convert to Class T shares eight years 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. Effective October 13, 2003, Class D shares are closed to all new investors and new accounts. Existing Class D shareholders will be able to make additional purchases at anytime. In addition, Class D sales charge of 1.00% is waived after October 13, 2003. Effective October 13, 2003, the Funds, excluding Columbia Small Cap Growth Fund and Columbia Daily Income Company, began offering Class C shares. As of the end of business on December 6, 2002, the Galaxy Large Cap Growth Fund merged into the Columbia Growth Fund as follows: NET ASSETS OF THE GALAXY LARGE SHARES CAP GROWTH FUND UNREALIZED ISSUED RECEIVED DEPRECIATION 1 ------ -------- ------------- 4,943,168 $108,315,198 $(8,049,749) NET ASSETS NET ASSETS NET ASSETS OF THE OF THE OF THE GALAXY LARGE COLUMBIA GROWTH COLUMBIA GROWTH CAP GROWTH FUND FUND FUND IMMEDIATELY IMMEDIATELY PRIOR TO PRIOR TO AFTER COMBINATION COMBINATION COMBINATION ----------- ----------- ----------- $798,985,765 $108,315,198 $907,300,963 As of the end of business on November 1, 2002, the Stein Roe International Fund ("SRIF") and Liberty Newport International 150 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- Equity Fund ("LNIEF") merged into the Columbia International Stock Fund as follows: NET ASSETS SHARES OF SRIF AND LNIEF UNREALIZED ISSUED RECEIVED DEPRECIATION 1 ------ -------- ------------- SRIF 1,426,029 $14,246,030 $(214,705) LNIEF 3,200,017 31,968,172 (948,177) NET ASSETS OF THE NET ASSETS NET ASSETS COLUMBIA OF THE OF INTERNATIONAL COLUMBIA INTERNATIONAL SRIF AND LNIEF STOCK FUND STOCK FUND IMMEDIATELY IMMEDIATELY PRIOR TO PRIOR TO AFTER COMBINATION COMBINATION COMBINATION ----------- ----------- ----------- $125,693,014 $46,214,202 $171,907,216 As of the end of business on November 1, 2002, the Liberty Midcap Growth Fund ("LMCGF"), Galaxy Growth II Fund ("GGIIF") and Stein Roe Capital Opportunities Fund ("SRCOF") merged into the Columbia Mid Cap Growth Fund as follows: NET ASSETS OF LMCGF, SHARES GGIIF AND SRCOF UNREALIZED ISSUED RECEIVED APPRECIATION 1 ------ -------- ------------- LMCGF 1,926,436 $ 29,609,516 $1,312,196 GGIIF 3,693,522 56,786,294 419,666 SRCOF 13,391,313 205,776,298 4,912,798 NET ASSETS NET ASSETS OF THE OF THE NET ASSETS COLUMBIA COLUMBIA OF LMCGF, MID CAP GROWTH MID CAP GROWTH GGIIF AND SRCOF FUND FUND IMMEDIATELY IMMEDIATELY PRIOR TO PRIOR TO AFTER COMBINATION COMBINATION COMBINATION ----------- ----------- ----------- $588,307,694 $292,172,108 $880,479,802 As of the end of business on November 1, 2002, the Liberty Contrarian Fund ("LCF") and Liberty Contrarian Equity Fund ("LCEF") merged into the Columbia Strategic Investor Fund as follows: NET ASSETS OF LCF SHARES AND LCEF UNREALIZED ISSUED RECEIVED DEPRECIATION 1 ------ -------- ------------- LCF 249,129 $ 3,236,185 $ (374,279) LCEF 4,319,838 56,114,694 (7,312,321) NET ASSETS NET ASSETS NET ASSETS OF THE OF THE OF LCF COLUMBIA STRATEGIC COLUMBIA STRATEGIC AND LCEF INVESTOR FUND INVESTOR FUND IMMEDIATELY IMMEDIATELY PRIOR TO PRIOR TO AFTER COMBINATION COMBINATION COMBINATION ----------- ----------- ----------- $216,528,060 $59,350,879 $275,878,939 As of the end of business on December 6, 2002, the Galaxy Short Term Bond Fund merged into the Columbia Short Term Bond Fund as follows: NET ASSETS OF THE GALAXY SHORT TERM SHARES BOND FUND UNREALIZED ISSUED RECEIVED APPRECIATION 1 ------ -------- ------------- 25,924,097 $223,465,181 $3,331,362 NET ASSETS NET ASSETS OF THE NET ASSETS OF THE COLUMBIA OF THE GALAXY SHORT TERM SHORT TERM COLUMBIA SHORT TERM BOND FUND BOND FUND BOND FUND IMMEDIATELY IMMEDIATELY PRIOR TO PRIOR TO AFTER COMBINATION COMBINATION COMBINATION ----------- ----------- ----------- $125,747,136 $223,465,181 $349,212,317 1 Unrealized appreciation/depreciation is included in the respective Net Assets Received amounts shown above. The following is a summary of significant accounting policies, in conformity with accounting principles generally accepted in the United States of America, which are consistently followed by the Funds in the preparation of their financial statements. INVESTMENT VALUATION. Equity securities are valued based on the last sale prices reported at the close of the principal securities exchanges on which the investments are traded or, in the absence of recorded sales, at the closing bid prices on such exchanges or over-the-counter markets. If any foreign share prices are not readily available as a result of limited share activity, the securities are valued at the last sale price of the local shares in the principal market in which such securities are normally traded. Fixed-income securities are valued based on market values as quoted by dealers who are market makers in these securities, by independent pricing services, or by the investment advisor using a methodology approved by the Board of Directors. Such services may use various pricing techniques which take into account appropriate factors such as yield, quality, coupon rate, maturity, type of issue, trading 151 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- characteristics and other data, as well as broker quotes. Certain securities, which tend to be more thinly traded and of lesser quality, are priced based on fundamental analysis of the financial condition of the issuer and the estimated value of any collateral. Valuations developed through pricing techniques may vary from the actual amounts realized upon sale of the securities, and the potential variation may be greater for those securities valued using fundamental analysis. Investments in other investment companies are valued at net asset value. Inflation indexed securities are fixed-income securities whose principal value is periodically adjusted according to the rate of inflation. Interest is accrued based on the principal value which is adjusted for inflation. Any increase in the principal amount of an inflation indexed security is recorded as interest income, even though the principal is not received until maturity. Futures contracts are valued at the settlement price established each day by the board or trade or exchange on which they are traded. Short-term obligations with less than 60 days to maturity when purchased and all securities held by Columbia Daily Income Company, are valued at amortized cost, which approximates market value. Investments for which market quotations are not readily available will be valued at fair market value as determined in good faith under procedures established by and under the general supervision of the Board of Directors of each Fund. Foreign currency exchange rates and the value of foreign securities are generally determined prior to the close of the New York Stock Exchange. 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 New York Stock Exchange, 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 under procedures established by and under the general supervision of the Board of Directors of each Fund. REPURCHASE AGREEMENTS. The Funds may engage in repurchase agreement transactions. The Funds, through their custodian, receive delivery of underlying securities collateralizing repurchase agreements. The Funds' investment advisor determines that the value of the underlying securities is at all times at least equal to the resale price. In the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings. 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. INVESTMENT TRANSACTIONS. Investment transactions are accounted for as of the date the investments are purchased or sold. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes. Securities purchased on a when-issued or forward-delivery basis may be settled a month or more after trade date; interest income is not accrued until settlement date. Each of the Funds will segregate liquid assets with a current value at least equal to the amount of its when-issued purchase commitments until settlement date. INVESTMENT INCOME AND EXPENSES. 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. The Columbia Real Estate Equity Fund estimates the components of distributions from Real Estate Investment Trusts (REIT). Distributions received in excess of income are recorded as a reduction of cost of investments. Interest income is recorded on the accrual basis and includes accretion of discounts, amortization of premiums and paydown gains and losses. 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. Expenses are recorded on the accrual basis and each Fund bears expenses incurred specifically on its behalf as well as a portion of general expenses incurred on behalf of all Funds. 152 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- Effective January 1, 2003, the Columbia Real Estate Equity Fund adopted the policy to reduce cost of investments for financial statement purposes by the distributions received in excess of income from REIT. The cumulative effect of this accounting change did not impact total net assets of the Fund, but resulted in reclassifications as follows: DECREASE IN UNDISTRIBUTED DECREASE NET INVESTMENT IN COST INCOME ------- ------ $6,160,297 $6,160,297 The effect of this change for the eight months ended August 31, 2003 is as follows: DECREASE IN DECREASE DIVIDEND IN COST INCOME ------- ------ $2,246,875 $2,246,875 The Statements of Changes in Net Assets and Financial Highlights for prior periods have not been restated to reflect this change. DETERMINATION OF CLASS NET ASSET VALUES. All income, expenses (other than class specific fees), and realized and unrealized gains (losses) are allocated to each class proportionately on a daily basis, based on net assets, for purposes of determining the net asset value of each class. FORWARD CURRENCY EXCHANGE CONTRACTS. Certain Funds may enter into forward currency exchange contracts in connection with planned purchases or sales of securities or to hedge the U.S. dollar value of the portfolio securities denominated in a foreign currency. Contracts are valued at the prevailing forward exchange rate of the underlying currencies. The gain or loss arising from the difference between the original contract price and the closing price of such contract is included in the net realized gains or losses from foreign currency transactions. Fluctuations in the value of forward currency exchange contracts are recorded for financial reporting purposes as unrealized gains or losses. The Funds could be exposed to risks if counterparties to the forward currency exchange contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. The effect of any change in the value of a hedged foreign currency would be offset by the corresponding change (resulting from a change in exchange rates) in value of the securities denominated in that currency. As of August 31, 2003, the Funds had no outstanding forward currency exchange contracts. FOREIGN CURRENCY TRANSLATIONS. 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. The Funds do not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices on investments held. Such fluctuations are included with the net realized and unrealized gain or loss on investments. Reported net realized foreign currency gains or losses arise from the sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Funds' books and the U.S. dollar equivalents of the amounts actually received or paid. Net unrealized foreign exchange gains or losses arise from changes in the value of assets and liabilities, other than investments in securities, resulting from changes in the exchange rate. Such transactions are shown separately on the Statement of Operations. USE OF ESTIMATES. The preparation of the financial statements in accordance 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 disclosures 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. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends from net investment income of the Columbia Real Estate Equity Fund and Columbia Balanced Fund are declared and paid quarterly. Dividends from net investment income of the Columbia Common Stock Fund, Columbia Growth Fund, Columbia International Stock Fund, Columbia Mid Cap Growth Fund, Columbia Small Cap Growth Fund, Columbia Technology Fund and Columbia Strategic Investor Fund are declared and paid annually. Dividends from net investment income of the Columbia Short Term Bond Fund, Columbia Fixed Income Securities Fund, Columbia National Municipal Bond Fund, Columbia Oregon Municipal Bond Fund and Columbia High Yield Fund are declared daily and paid monthly. Dividends from net investment income of the Columbia Daily Income Company 153 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- are declared and paid daily. Distributions from any net realized gains are generally declared and paid annually for all Funds. Additional distributions of net investment income and capital gains for each Fund may be made at the discretion of the Board of Directors in accordance with federal income tax regulations. 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. FOREIGN CAPITAL GAINS TAXES. Realized gains in certain countries may be subject to foreign taxes at the Fund level, at rates ranging from approximately 10% to 30%. The Funds provide for such foreign taxes on net realized and unrealized gains at the appropriate rate for each jurisdiction. REDEMPTION FEES. Effective February 15, 2003, the Columbia International Stock Fund began imposing a 2.00% redemption fee to shareholders of Class Z shares who redeem shares held for 60 days or less. For the period February 15, 2003 to August 31, 2003, the redemption fee for Class Z shares amounted to $164,843. This amount, which is retained by the Columbia International Stock Fund, is accounted for as an addition to paid in capital. For the period February 15, 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. OTHER. There are certain additional risks involved when investing in foreign securities that are not inherent with investments in domestic securities. These risks may involve foreign currency exchange rate fluctuations, adverse political and economic developments and the possible prevention of currency exchange or other foreign governmental laws or restrictions. For the Columbia Oregon Municipal Bond Fund there are certain risks arising from geographic concentration in any one state. Certain revenue or tax related events in a state may impair the ability of certain issuers of municipal securities to pay principal and interest on their obligations. Also, certain non-diversified funds may focus their investments in certain industries, subjecting them to greater risk than a fund that is more diversified. The Columbia High Yield Fund invests in lower rated debt securities, which may be more susceptible to adverse economic conditions than investment grade holdings. These securities are often subordinated to the prior claims of other senior lenders, and uncertainties exist as to an issuer's ability to meet principal and interest payments. 154 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 2 -- INVESTMENT TRANSACTIONS As of August 31, 2003, for federal income tax purposes, net unrealized appreciation (depreciation) on investments was as follows:
UNREALIZED UNREALIZED NET UNREALIZED APPRECIATION DEPRECIATION APPRECIATION ------------- ------------ -------------- Columbia Common Stock Fund ............... $ 73,444,358 $ (2,790,135) $ 70,654,223 Columbia Growth Fund ..................... 162,588,066 (7,003,194) 155,584,872 Columbia International Stock Fund ........ 37,170,396 (8,336,368) 28,834,028 Columbia Mid Cap Growth Fund ............. 217,648,225 (17,908,857) 199,739,368 Columbia Small Cap Growth Fund ........... 152,086,833 (9,274,944) 142,811,889 Columbia Real Estate Equity Fund ......... 194,605,827 (4,504,334) 190,101,493 Columbia Technology Fund ................. 3,325,392 (227,709) 3,097,683 Columbia Strategic Investor Fund ......... 43,402,303 (3,975,860) 39,426,443 Columbia Balanced Fund ................... 76,332,141 (4,494,084) 71,838,057 Columbia Short Term Bond Fund ............ 3,959,637 (2,895,371) 1,064,266 Columbia Fixed Income Securities Fund .... 11,487,145 (5,518,097) 5,969,048 Columbia National Municipal Bond Fund .... 505,744 (77,340) 428,404 Columbia Oregon Municipal Bond Fund ...... 17,214,989 (5,711,395) 11,503,594 Columbia High Yield Fund ................. 28,561,046 (16,147,532) 12,413,514
During the period ended August 31, 2003, purchases and sales of investments, other than short-term obligations, were as follows: PURCHASES SALES ------------- ------------- Columbia Common Stock Fund ............... $ 411,207,992 $ 455,849,482 Columbia Growth Fund ..................... 914,724,289 964,142,585 Columbia International Stock Fund ........ 162,615,631 85,811,841 Columbia Mid Cap Growth Fund ............. 687,055,191 640,676,807 Columbia Small Cap Growth Fund ........... 396,116,127 415,744,063 Columbia Real Estate Equity Fund ......... 253,903,291 256,710,211 Columbia Technology Fund ................. 63,517,029 59,172,657 Columbia Strategic Investor Fund ......... 148,199,990 197,513,103 Columbia Balanced Fund ................... 687,495,271 734,895,517 Columbia Short Term Bond Fund ............ 801,961,677 556,546,304 Columbia Fixed Income Securities Fund .... 874,088,708 853,771,894 Columbia National Municipal Bond Fund .... 2,076,479 1,954,604 Columbia Oregon Municipal Bond Fund ...... 51,024,705 59,109,771 Columbia High Yield Fund ................. 978,970,492 417,043,282 During the period ended August 31, 2003, purchases and sales of U.S. Government securities were as follows: PURCHASES SALES ------------- ------------- Columbia Common Stock Fund ............... $ 3,355,849 $ 3,882,012 Columbia Growth Fund ..................... 4,056,957 13,563,909 Columbia Strategic Investor Fund ......... 751,850 757,970 Columbia Balanced Fund ................... 255,254,301 263,475,568 Columbia Short Term Bond Fund ............ 37,046,902 65,041,640 Columbia Fixed Income Securities Fund .... 735,279,279 720,182,530 155 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- 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, current year distribution payable, capital loss carryforwards, real estate investment trust adjustments, foreign capital gains tax, net operating loss 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 August 31, 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 GAIN (LOSS) CAPITAL -------------- ------------ ------------ Columbia Common Stock Fund .............. $ 9 $ (9) $ -- Columbia Growth Fund .................... 66,592 -- (66,592) Columbia International Stock Fund ....... 13,774 (23,730) 9,956 Columbia Mid Cap Growth Fund ............ 4,890,253 -- (4,890,253) Columbia Small Cap Growth Fund .......... 3,758,177 -- (3,758,177) Columbia Real Estate Equity Fund ........ 410,226 4,451,351 (4,861,577) Columbia Technology Fund ................ 97,458 -- (97,458) Columbia Strategic Investor Fund ........ 2,000 (2,901) 901 Columbia Balanced Fund .................. 322,195 (322,195) -- Columbia Short Term Bond Fund ........... 326,054 (89,440) (236,614) Columbia Fixed Income Securities Fund ... 762,934 (762,934) -- Columbia National Municipal Bond Fund ... (20) 20 -- Columbia Oregon Municipal Bond Fund ..... (4,161) 4,161 -- Columbia High Yield Fund ................ 542,959 (542,959) --
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 August 31, 2003 and the years ended December 31, 2002 and December 31, 2001 was as follows:
PERIOD ENDED AUGUST 31, 2003 ----------------------------------------------------------- TAX-EXEMPT ORDINARY LONG-TERM INCOME INCOME CAPITAL GAINS TOTAL ------------ ----------- ------------- ----------- Columbia Real Estate Equity Fund ......... $ -- $11,900,435 $ -- $11,900,435 Columbia Balanced Fund ................... -- 6,968,577 -- 6,968,577 Columbia Short Term Bond Fund ............ -- 7,429,972 -- 7,429,972 Columbia Fixed Income Securities Fund .... -- 14,327,387 -- 14,327,387 Columbia National Municipal Bond Fund .... 432,316 2,844 10,985 446,145 Columbia Oregon Municipal Bond Fund ...... 14,166,830 24,229 280,860 14,471,919 Columbia High Yield Fund ................. -- 53,476,396 -- 53,476,396 Columbia Daily Income Company ............ -- 3,560,546 -- 3,560,546
156 NOTES TO FINANCIAL STATEMENTS - --------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31, 2002 --------------------------------------------------------------------- TAX-EXEMPT ORDINARY LONG-TERM TAX RETURN INCOME INCOME CAPITAL GAINS OF CAPITAL TOTAL ----------- ------------ ------------ ----------- ------------ Columbia Common Stock Fund ............... $ -- $ 2,325,610 $ -- $ -- $ 2,325,610 Columbia International Stock Fund ........ -- 102,850 -- 403,799 506,649 Columbia Real Estate Equity Fund ......... -- 29,918,034 -- 3,915,328 33,833,362 Columbia Strategic Investor Fund ......... -- 2,143,571 71,885 -- 2,215,456 Columbia Balanced Fund ................... -- 21,206,395 -- -- 21,206,395 Columbia Short Term Bond Fund ............ -- 3,936,894 -- -- 3,936,894 Columbia Fixed Income Securities Fund .... -- 25,343,852 -- -- 25,343,852 Columbia National Municipal Bond Fund .... 599,363 2,439 64,967 -- 666,769 Columbia Oregon Municipal Bond Fund ...... 22,352,069 200,224 4,822,914 -- 27,375,207 Columbia High Yield Fund ................. -- 30,342,904 -- -- 30,342,904 Columbia Daily Income Company ............ -- 14,142,055 -- -- 14,142,055
YEAR ENDED DECEMBER 31, 2001 --------------------------------------------------------------------- TAX-EXEMPT ORDINARY LONG-TERM TAX RETURN INCOME INCOME CAPITAL GAINS OF CAPITAL TOTAL ----------- ------------ ------------ ----------- ------------ Columbia Common Stock Fund ............... $ -- $ 2,384,042 $ 568,973 $ -- $ 2,953,015 Columbia Growth Fund ..................... -- -- 6,365,332 -- 6,365,332 Columbia International Stock Fund ........ -- -- -- 131,448 131,448 Columbia Mid Cap Growth Fund ............. -- -- 36,110,869 -- 36,110,869 Columbia Real Estate Equity Fund ......... -- 21,221,990 -- 2,074,000 23,295,990 Columbia Strategic Investor Fund ......... -- 503,110 -- -- 503,110 Columbia Balanced Fund ................... -- 28,272,449 -- -- 28,272,449 Columbia Short Term Bond Fund ............ -- 2,396,760 107,979 -- 2,504,739 Columbia Fixed Income Securities Fund .... -- 25,535,189 -- -- 25,535,189 Columbia National Municipal Bond Fund .... 533,303 3,175 22,086 -- 558,564 Columbia Oregon Municipal Bond Fund ...... 22,201,827 18,916 1,079,947 -- 23,300,690 Columbia High Yield Fund ................. -- 13,865,815 -- -- 13,865,815 Columbia Daily Income Company ............ -- 45,229,610 -- -- 45,229,610 As of August 31, 2003, the components of distributable earnings on a tax basis were as follows:
UNDISTRIBUTED UNDISTRIBUTED UNDISTRIBUTED NET TAX-EXEMPT ORDINARY LONG-TERM UNREALIZED INCOME INCOME CAPITAL GAINS APPRECIATION * ------------- ------------ ------------- -------------- Columbia Common Stock Fund ............... $ -- $ 1,506,446 $ -- $ 70,654,223 Columbia Growth Fund ..................... -- -- -- 155,584,872 Columbia International Stock Fund ........ -- 1,284,982 -- 28,379,211 Columbia Mid Cap Growth Fund ............. -- -- -- 199,739,368 Columbia Small Cap Growth Fund ........... -- -- -- 142,811,889 Columbia Real Estate Equity Fund ......... -- 4,718,014** -- 190,101,493 Columbia Technology Fund ................. -- -- -- 3,097,683 Columbia Strategic Investor Fund ......... -- 1,293,349 -- 39,426,367 Columbia Balanced Fund ................... -- 1,881,426 -- 71,838,057 Columbia Short Term Bond Fund ............ -- 252,728 -- 1,064,266 Columbia Fixed Income Securities Fund .... -- 64,031 -- 5,969,048 Columbia National Municipal Bond Fund .... 4,291 -- 56,064 428,404 Columbia Oregon Municipal Bond Fund ...... 377,628 95,377 3,257,680 11,503,594 Columbia High Yield Fund ................. -- 2,237,700 -- 12,413,514 Columbia Daily Income Company ............ -- 5,134 -- --
* The difference between book-basis and tax-basis unrealized appreciation (depreciation), if applicable, is attributable primarily to the tax deferral of losses on wash sales. ** Amount is estimated as of August 31, 2003. 157 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 3 -- FEDERAL TAX INFORMATION (CONT.) The following capital loss carryforwards, determined as of August 31, 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 2005 2006 2007 2008 2009 2010 2011 TOTAL -------- ------- ----------- ----------- ------------ ------------ ----------- ------------ Columbia Common Stock Fund .......$ -- $ -- $ $ -- $ 52,039,637 $ 73,274,519 $18,452,682 $143,766,838 Columbia Growth Fund ............. -- -- 23,087,439 7,477,479 162,540,209 201,393,752 43,705,919 438,204,798 Columbia International Stock Fund ....................... -- -- 7,390,519 5,799,516 24,287,430 16,745,931 9,023,330 63,246,726 Columbia Mid Cap Growth Fund ..... -- -- 9,239,978 30,472,022 123,971,781 95,645,403 4,954,493 264,283,677 Columbia Small Cap Growth Fund ... -- -- -- -- 104,088,375 101,480,033 -- 205,568,408 Columbia Real Estate Equity Fund * -- -- -- 1,271,327 -- 10,996,911 -- 12,268,238 Columbia Technology Fund ......... -- -- -- -- 1,244,550 4,569,408 -- 5,813,958 Columbia Strategic Investor Fund . -- -- 1,431,991 789,528 -- 18,244,149 7,553,218 28,018,886 Columbia Balanced Fund ........... -- -- -- -- 65,697,715 69,939,934 10,183,477 145,821,126 Columbia Short Term Bond Fund .... 450,166 517,428 -- 1,103,186 -- -- -- 2,070,780 Columbia Fixed Income Securities Fund .................. -- -- -- -- -- 2,618,327 -- 2,618,327 Columbia High Yield Fund ......... -- -- 798,777 1,547,817 6,534,263 26,808,027 -- 35,688,884 Columbia Daily Income Company .... -- -- -- -- -- -- 320 320
* The Fund's capital loss carryforward information is as of December 31, 2002. Of the capital loss carryforwards attributable to Columbia Growth Fund, $30,564,918 ($23,087,439 expiring 08/31/07 and $7,477,479 expiring 08/31/08) was obtained upon the Columbia Growth Fund's merger with Galaxy Large Cap Growth Fund (See Note 1). Of the capital loss carryforwards attributable to Columbia International Stock Fund, $9,124,064 ($7,196,259 expiring 08/31/07 and $1,927,805 expiring 08/31/08) and $4,725,563 ($194,260 expiring 08/31/07, $3,871,712 expiring 08/31/08 and $659,591 expiring 08/31/09) were obtained upon the Columbia International Stock Fund's merger with LNIEF and SRIF, respectively (See Note 1). Of the capital loss carryforwards attributable to Columbia Mid Cap Growth Fund, $9,732,198 ($927,932 expiring 08/31/07, $7,427,424 expiring 08/31/08 and $1,376,842 expiring 08/31/09), $39,492,613 ($5,340,814 expiring 08/31/07, $22,105,946 expiring 08/31/08 and $12,045,853 expiring 08/31/09) and $4,415,697 ($2,971,232 expiring 08/31/07, $938,652 expiring 08/31/08 and $505,813 expiring 08/31/09) were obtained upon the Columbia Mid Cap Growth Fund's merger with LMCGF, SRCOF and GGIIF, respectively (See Note 1). Of the capital loss carryforwards attributable to Columbia Strategic Investor Fund, $1,968,809 ($1,331,685 expiring 08/31/07 and $637,124 expiring 08/31/08) and $252,710 ($100,306 expiring 08/31/07 and $152,404 expiring 08/31/08) were obtained upon the Columbia Strategic Investor Fund's merger with LCEF and LCF, respectively (See Note 1). Of the capital loss carryforwards attributable to Columbia Short Term Bond Fund, $2,070,780 ($450,166 expiring 08/31/05, $517,428 expiring 08/31/06 and $1,103,186 expiring 08/31/08) was obtained upon the Columbia Short Term Bond Fund's merger with Galaxy Short Term Bond Fund (See Note 1). 158 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 4 -- TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES On April 1, 2003, Colonial Management Associates, Inc. ("Colonial") 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 Colonial 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 FEES. Investment management fees were paid by each Fund to Columbia. The fees are based on the following annual rates of average daily net assets:
ACTUAL RATE FOR THE PERIOD FEES ON FEES ON FEES ON FEES ON ENDED NET ASSETS NET ASSETS NET ASSETS NET ASSETS AUGUST 31, FIRST NEXT NEXT EXCEEDING 2003 $200 MILLION $300 MILLION $500 MILLION $1 BILLION ------------- ------------ ------------ ------------ ----------- Columbia Common Stock Fund ................ 0.600% 0.600% 0.600% 0.600% 0.600% Columbia Growth Fund ...................... 0.602% 0.750% 0.625% 0.500% 0.500% Columbia International Stock Fund* ........ 1.000% 1.000% 1.000% 1.000% 1.000% Columbia Mid Cap Growth Fund .............. 0.888% 1.000% 1.000% 0.750% 0.750% Columbia Small Cap Growth Fund ............ 1.000% 1.000% 1.000% 1.000% 1.000% Columbia Real Estate Equity Fund .......... 0.750% 0.750% 0.750% 0.750% 0.750% Columbia Technology Fund .................. 1.000% 1.000% 1.000% 1.000% 1.000% Columbia Strategic Investor Fund .......... 0.750% 0.750% 0.750% 0.750% 0.750% Columbia Balanced Fund .................... 0.500% 0.500% 0.500% 0.500% 0.500% Columbia Short Term Bond Fund ............. 0.500% 0.500% 0.500% 0.500% 0.500% Columbia Fixed Income Securities Fund ..... 0.500% 0.500% 0.500% 0.500% 0.500% Columbia National Municipal Bond Fund ..... 0.500% 0.500% 0.500% 0.500% 0.500% Columbia Oregon Municipal Bond Fund ....... 0.500% 0.500% 0.500% 0.500% 0.500% Columbia High Yield Fund .................. 0.600% 0.600% 0.600% 0.600% 0.600% Columbia Daily Income Company ............. 0.473% 0.500% 0.500% 0.450% 0.400% * Effective July 30, 2003, the management fee was changed for the following fund: Columbia International Stock Fund ......... N/A 1.000% 1.000% 0.950% 0.900%
TRANSFER AGENT FEES. The transfer agent for the Funds is Liberty Funds Services, Inc., an affiliate of Columbia. Effective October 13, 2003, Liberty Funds Services, Inc. changed its name to Columbia Funds Services, Inc. ("CFSI"). For all Funds' Class Z shares, with the exception of Columbia National Municipal Bond Fund, CFSI is compensated based on a monthly fee equal to the higher of a per account fee or a flat fee of $1,500 per month. Columbia National Municipal Bond Fund is not subject to the $1,500 flat fee. For Class A, Class B, Class D, Class G and Class T shares, each Fund pays CFSI a monthly fee that is the lower of: 1) the monthly fee described for Class Z shares in the preceding sentence, as applied to Class A, Class B, Class D, Class G and Class T shares, or 2) a fee based upon an annual rate of 0.06% of the average daily net assets attributable to Class A, Class B, Class D, Class G and Class T shares, plus a per transaction fee and a per account fee. In addition, CFSI receives reimbursement for certain out-of-pocket expenses. At a special meeting held on September 30, 2003, the Board of Directors approved a change of the transfer agent fees structure for the Funds. Effective November 1, 2003, the Funds will be charged an annual charge per open account for the transfer agent fees as follows: Columbia Common Stock Fund $28.00 Columbia Growth Fund $28.00 Columbia International Stock Fund $28.00 159 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 4 -- TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONT.) Columbia Mid Cap Growth Fund $28.00 Columbia Small Cap Growth Fund $28.00 Columbia Real Estate Equity Fund $28.00 Columbia Technology Fund $28.00 Columbia Strategic Investor Fund $28.00 Columbia Balanced Fund $28.00 Columbia Short Term Bond Fund $34.00 Columbia Fixed Income Securities Fund $34.00 Columbia National Municipal Bond Fund $34.00 Columbia Oregon Municipal Bond Fund $34.00 Columbia High Yield Fund $34.00 Columbia Daily Income Company $33.50 PRICING AND BOOKKEEPING FEES. Columbia is responsible for providing pricing and bookkeeping services to the Funds under a Pricing, Bookkeeping and Fund Administration Agreement. Under a separate agreement (the "Outsourcing Agreement"), Columbia has delegated certain of these 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 a monthly fee equal to 0.01% annually of each Fund's average daily net assets. The fee for a Fund in any year shall not be less than $25,000 or exceed $150,000. At the special meeting held on September 30, 2003, the Board of Directors also approved a change of the pricing and bookkeeping fees structure effective November 1, 2003. Under the new pricing and bookkeeping agreement, Columbia will receive from the Funds an annual flat financial accounting fee of $25,000, an annual flat financial reporting fee of $19,965 and a monthly financial accounting fee equal to 0.02% annually of average daily net assets of each Fund. The fee for a Fund in any year shall not exceed $150,000. UNDERWRITING DISCOUNTS, SERVICE AND DISTRIBUTION FEES. 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 August 31, 2003, the Funds have been advised that the Distributor retained fees as follows:
FRONT-END CONTINGENT DEFERRED SALES CHARGE SALES CHARGE ----------------- --------------------------------------- CLASS A CLASS T CLASS A CLASS B CLASS D CLASS G -------- ------- ------- -------- -------- ------- Columbia Common Stock Fund .............. $ 166 $ -- $ -- $ 7 $ -- $ -- Columbia Growth Fund .................... 2,534 -- 1,109 215 50 19,518 Columbia International Stock Fund ....... 7,096 -- 2,087 19,114 106 -- Columbia Mid Cap Growth Fund ............ 1,056 65 22 7,098 119 1,636 Columbia Real Estate Equity Fund ........ 11,048 -- -- 1,450 122 -- Columbia Technology Fund ................ 151 -- 154 58 -- -- Columbia Strategic Investor Fund ........ 1,674 -- 280 6,849 92 -- Columbia Balanced Fund .................. 1,584 -- 77 4,927 150 -- Columbia Short Term Bond Fund ........... 34,079 33 953 52,350 16,823 5,151 Columbia Fixed Income Securities Fund ... 4,172 -- -- 6,586 2,841 -- Columbia National Municipal Bond Fund ... 1,276 -- -- -- 121 -- Columbia Oregon Municipal Bond Fund ..... 6,909 -- -- 625 2,100 -- Columbia High Yield Fund ................ 158,986 -- 8,066 73,004 42,091 --
160 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- 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 rate of average daily net assets as follows:
DISTRIBUTION FEE SERVICE FEE ------------------------------------ ---------------------------------------- CLASS A(a) CLASS B CLASS D CLASS G CLASS A(a) CLASS B CLASS D CLASS G -------- ------- ------- -------- -------- ------ ------- ------- Columbia Common Stock Fund ............. 0.10% 0.75% 0.75% -- 0.25% 0.25% 0.25% -- Columbia Growth Fund ................... 0.10% 0.75% 0.75% 0.65%(b) 0.25% 0.25% 0.25% 0.50%(b) Columbia International Stock Fund ...... -- 0.75% 0.75% -- 0.25% 0.25% 0.25% -- Columbia Mid Cap Growth Fund ........... 0.10% 0.75% 0.75% 0.65%(b) 0.25% 0.25% 0.25% 0.50%(b) Columbia Real Estate Equity Fund ....... 0.10% 0.75% 0.75% -- 0.25% 0.25% 0.25% -- Columbia Technology Fund ............... 0.10% 0.75% 0.75% -- 0.25% 0.25% 0.25% -- Columbia Strategic Investor Fund ....... -- 0.75% 0.75% -- 0.25% 0.25% 0.25% -- Columbia Balanced Fund ................. 0.10% 0.75% 0.75% -- 0.25% 0.25% 0.25% -- Columbia Short Term Bond Fund .......... 0.10% 0.75% 0.75% 0.65%(c) 0.25% 0.25% 0.25% 0.50%(c) Columbia Fixed Income Securities Fund .. 0.10% 0.75% 0.75% -- 0.25% 0.25% 0.25% -- Columbia National Municipal Bond Fund .. 0.10% 0.75% 0.75% -- 0.25% 0.25% 0.25% -- Columbia Oregon Municipal Bond Fund .... 0.10% 0.75% 0.75% -- 0.25% 0.25% 0.25% -- Columbia High Yield Fund ............... 0.10% 0.75% 0.75% -- 0.25% 0.25% 0.25% --
(a) The Fund's Board of Directors limits payments under the Plan for Class A shares to 0.25% annually of the Class A average daily net assets. (b) The Fund's Board of Directors limits payments under the Plan for Class G shares to 0.95% annually of the Class G average daily net assets. (c) The Fund's Board of Directors limits payments under the Plan for Class G shares to 0.80% annually of the Class G average daily net assets. The Distributor has voluntarily agreed to waive a portion of the Class D distribution and service fees so that combined these fees do not exceed the annual rates of average daily net assets as follows: Columbia Short Term Bond Fund ............ 0.40% Columbia Fixed Income Securities Fund .... 0.85% Columbia National Municipal Bond Fund .... 0.65% Columbia Oregon Municipal Bond Fund ...... 0.65% Columbia High Yield Fund ................. 0.85% The CDSC and the fees received from the Plan are used principally as repayment to the Distributor for amounts paid by the Distributor to dealers who sold such shares. SHAREHOLDER SERVICES PLAN. The Columbia Mid Cap Growth Fund and Columbia Short Term Bond Fund have adopted shareholder services plans that permit them to pay for certain services provided to Class T shareholders by their financial advisor. The annual service fee may equal up to 0.50% for Class T shares, but will not exceed each Fund's net investment income attributable to Class T shares. The Columbia Mid Cap Growth Fund does not intend to pay more than 0.30% annually for Class T shareholder service fees. The Columbia Short Term Bond Fund does not intend to pay more than 0.15% annually for Class T shareholder service fees. EXPENSE LIMITS. For the period ended August 31, 2003, and until further notice, Columbia has contractually agreed to reimburse expenses (excluding any class specific distribution and service fees, brokerage commissions, interest, taxes and extraordinary expenses, if any) in excess of 1.65% and 0.65% for the Columbia Technology Fund and Columbia National Municipal Bond Fund, respectively. 161 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 4 -- TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONT.) For the three years commencing November 1, 2000 and ending October 31, 2003, Columbia has contractually agreed to reimburse expenses (excluding any class specific distribution, service and shareholder service fees, brokerage commissions, interest, taxes and extraordinary expenses, if any), in excess of 0.75% for the Columbia Short Term Bond Fund. In addition, through May 24, 2004, Columbia or its affiliate has contractually agreed to reimburse class specific transfer agency fees to the extent necessary to prevent the total annual operating expense from exceeding 1.64%, 0.98% and 0.66% for Class G, Class T and Class Z shares, respectively, as a result of expenses attributable to the acquisition of the Galaxy Short-Term Bond Fund by the Columbia Short Term Bond Fund. Columbia has contractually agreed to waive a portion of the transfer agent fees at an annual rate of average daily net assets as follows: CLASS A CLASS B CLASS D CLASS Z ------- ------- ------- ------- Columbia International Stock Fund . -- 0.11% 0.75% 0.12% Columbia Mid Cap Growth Fund ...... 0.01% 0.12% 0.09% 0.05% Columbia Strategic Investor Fund .. -- 0.23% 0.15% 0.03% Columbia has agreed to keep the transfer agent agreements in place through May 2004. Thereafter, these arrangements may be modified or terminated by Columbia at any time. OTHER. 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 August 31, 2003 are as follows: CUSTODY NAME OF FUND CREDITS - ------------ ------- Columbia Common Stock Fund ............. $ 1 Columbia Growth Fund ................... 1,061 Columbia International Stock Fund ...... 280 Columbia Mid Cap Growth Fund ........... 527 Columbia Small Cap Growth Fund ......... 1,211 Columbia Real Estate Equity Fund ....... 80 Columbia Technology Fund ............... 264 Columbia Strategic Investor Fund ....... 2,714 Columbia Balanced Fund ................. 1,766 Columbia Short Term Bond Fund .......... 3,254 Columbia Fixed Income Securities Fund .. 1,575 Columbia National Municipal Bond Fund .. 47 Columbia Oregon Municipal Bond Fund .... 91 Columbia High Yield Fund ............... 6,125 Columbia Daily Income Company .......... 1,437 Directors' fees and expenses were paid directly by each Fund to directors having no affiliation with the Funds other than in their capacity as directors. Other officers and directors receive no compensation from the Funds. 162 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 5 -- CAPITAL STOCK ACTIVITY
COLUMBIA FUNDS FOR THE PERIOD ENDED AUGUST 31, 2003 (a) REAL COMMON INTERNATIONAL MID CAP SMALL CAP ESTATE STOCK GROWTH STOCK GROWTH GROWTH EQUITY FUND FUND FUND FUND FUND FUND ------------ ------------ ------------ ------------ ------------ ----------- SHARES: CLASS A: Shares sold................................. 10,945 50,514 179,774 389,366 -- 655,533 Shares issued for distributions reinvested.. -- -- -- -- -- 2,966 Shares redeemed............................. (117) (26,317) (278,832) (219,073) -- (121,571) ------------ ------------ ------------ ------------ ------------ ----------- Net increase (decrease).................. 10,828 24,197 (99,058) 170,293 -- 536,928 ============ ============ ============ ============ ============ =========== CLASS B: Shares sold................................. 36,205 31,960 117,506 47,439 -- 178,356 Shares issued for distributions reinvested.. -- -- -- -- -- 860 Shares redeemed............................. (7,327) (5,060) (289,533) (40,673) -- (12,411) ------------ ------------ ------------ ------------ ------------ ----------- Net increase (decrease).................. 28,878 26,900 (172,027) 6,766 -- 166,805 ============ ============ ============ ============ ============ =========== CLASS D: Shares sold................................. 16,394 13,491 67,591 18,375 -- 147,439 Shares issued for distributions reinvested.. -- -- -- -- -- 775 Shares redeemed............................. (11,846) (6,462) (65,502) (6,698) -- (3,893) ------------ ------------ ------------ ------------ ------------ ----------- Net increase............................. 4,548 7,029 2,089 11,677 -- 144,321 ============ ============ ============ ============ ============ =========== CLASS G: Shares sold................................. -- 5,008 -- 1,272 -- -- Shares redeemed............................. -- (58,288) -- (7,460) -- -- ------------ ------------ ------------ ------------ ------------ ----------- Net decrease............................. -- (53,280) -- (6,188) -- -- ============ ============ ============ ============ ============ =========== CLASS T: Shares sold................................. -- -- -- 22,853 -- -- Shares redeemed............................. -- -- -- (127,510) -- -- ------------ ------------ ------------ ------------ ------------ ----------- Net decrease............................. -- -- -- (104,657) -- -- ============ ============ ============ ============ ============ =========== CLASS Z: Shares sold................................. 3,346,207 3,770,779 12,787,173 15,558,486 8,361,804 19,396,080 Shares issued for distributions reinvested.. -- -- -- -- -- 497,422 Shares redeemed............................. (6,523,031) (5,869,216) (5,233,439) (15,158,849) (9,108,258) (21,373,984) ------------ ------------ ------------ ------------ ------------ ----------- Net increase (decrease).................. (3,176,824) (2,098,437) 7,553,734 399,637 (746,454) (1,480,482) ============ ============ ============ ============ ============ ===========
(a)The Funds have changed their fiscal year end from December 31 to August 31. 163 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 5 -- CAPITAL STOCK ACTIVITY (CONT.)
COLUMBIA FUNDS FOR THE PERIOD ENDED AUGUST 31, 2003 (a) REAL COMMON INTERNATIONAL MID CAP SMALL CAP ESTATE STOCK GROWTH STOCK GROWTH GROWTH EQUITY FUND FUND FUND FUND FUND FUND ------------- ------------- ------------- ------------- ------------- ------------- AMOUNTS: CLASS A: Sales ............................ $ 170,123 $ 1,127,877 $ 1,838,487 $ 6,472,166 -- $ 12,613,973 Distributions reinvested ......... -- -- -- -- -- 56,728 Redemptions ...................... (1,878) (600,530) (2,814,836) (3,745,690) -- (2,319,879) ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) ....... $ 168,245 $ 527,347 $ (976,349) $ 2,726,476 -- $ 10,350,822 ============= ============= ============= ============= ============= ============= CLASS B: Sales ............................ $ 551,074 $ 722,252 $ 1,216,734 $ 745,476 -- $ 3,330,663 Distributions reinvested ......... -- -- -- -- -- 16,519 Redemptions ...................... (107,471) (113,169) (2,950,070) (637,724) -- (241,060) ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) ....... $ 443,603 $ 609,083 $ (1,733,336) $ 107,752 -- $ 3,106,122 ============= ============= ============= ============= ============= ============= CLASS D: Sales ............................ $ 259,863 $ 309,866 $ 669,176 $ 281,516 -- $ 2,763,824 Distributions reinvested ......... -- -- -- -- -- 14,883 Redemptions ...................... (192,430) (148,435) (642,271) (106,816) -- (76,027) ------------- ------------- ------------- ------------- ------------- ------------- Net increase .................. $ 67,433 $ 161,431 $ 26,905 $ 174,700 -- $ 2,702,680 ============= ============= ============= ============= ============= ============= CLASS G: Sales ............................ -- $ 110,114 -- $ 19,333 -- -- Redemptions ...................... -- (1,271,125) -- (114,734) -- -- ------------- ------------- ------------- ------------- ------------- ------------- Net decrease .................. -- $ (1,161,011) -- $ (95,401) -- -- ============= ============= ============= ============= ============= ============= CLASS T: Sales ............................ -- -- -- $ 357,740 -- -- Redemptions ...................... -- -- -- (2,002,189) -- -- ------------- ------------- ------------- ------------- ------------- ------------- Net decrease .................. -- -- -- $ (1,644,449) -- -- ============= ============= ============= ============= ============= ============= CLASS Z: Sales............................. $ 52,008,289 $ 84,770,150 $ 132,219,531 $ 243,718,260 $ 154,165,644 $ 358,557,734 Distributions reinvested ......... -- -- -- -- -- 9,407,709 Redemptions ...................... (102,375,697) (128,773,493) (52,772,540) (237,069,456) (159,924,003) (393,631,516) ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease)........ $ (50,367,408) $ (44,003,343) $ 79,446,991 $ 6,648,804 $ (5,758,359) $ (25,666,073) ============= ============= ============= ============= ============= ============= Total Capital Share Transactions.. $ (49,688,127) $ (43,866,493) $ 76,764,211 $ 7,917,882 $ (5,758,359) $ (9,506,449) ============= ============= ============= ============= ============= =============
(a) The Funds have changed their fiscal year end from December 31 to August 31. 164 NOTES TO FINANCIAL STATEMENTS - --------------------------------------------------------------------------------
COLUMBIA FUNDS FOR THE PERIOD ENDED AUGUST 31, 2003 (a) SHORT FIXED NATIONAL STRATEGIC TERM INCOME MUNICIPAL TECHNOLOGY INVESTOR BALANCED BOND SECURITIES BOND FUND FUND FUND FUND FUND FUND ----------- ------------ ------------ ------------ ------------ ----------- SHARES: CLASS A: Shares sold................................. 170,882 75,306 33,607 4,593,712 726,952 53,632 Shares issued for distributions reinvested.. -- -- 155 23,346 4,853 578 Shares redeemed............................. (107,548) (383,804) (7,153) (935,142) (239,158) (21,357) ----------- ------------ ------------ ------------ ------------ ----------- Net increase (decrease).................. 63,334 (308,498) 26,609 3,681,916 492,647 32,853 =========== ============ ============ ============ ============ =========== CLASS B: Shares sold................................. 256,020 63,797 157,057 2,912,411 262,519 59,020 Shares issued for distributions reinvested.. -- -- 424 15,236 3,019 460 Shares redeemed............................. (45,189) (28,440) (17,361) (522,269) (43,299) (7,781) ----------- ------------ ------------ ------------ ------------ ----------- Net increase............................. 210,831 35,357 140,120 2,405,378 222,239 51,699 =========== ============ ============ ============ ============ =========== CLASS D: Shares sold................................. 24,865 27,649 27,277 1,835,008 226,577 39,862 Shares issued for distributions reinvested.. -- -- 152 15,226 1,525 291 Shares redeemed............................. (22,619) (10,199) (12,719) (305,609) (62,333) (1,214) ----------- ------------ ------------ ------------ ------------ ----------- Net increase ............................ 2,246 17,450 14,710 1,544,625 165,769 38,939 =========== ============ ============ ============ ============ =========== CLASS G: Shares sold................................. -- -- -- 19,116 -- -- Shares issued for distributions reinvested.. -- -- -- 2,089 -- -- Shares redeemed............................. -- -- -- (50,125) -- -- ----------- ------------ ------------ ------------ ------------ ----------- Net decrease ............................ -- -- -- (28,920) -- -- =========== ============ ============ ============ ============ =========== CLASS T: Shares sold................................. -- -- -- 364,019 -- -- Shares issued for distributions reinvested.. -- -- -- 45,992 -- -- Shares redeemed............................. -- -- -- (694,581) -- -- ----------- ------------ ------------ ------------ ------------ ----------- Net decrease ............................ -- -- -- (284,570) -- -- =========== ============ ============ ============ ============ =========== CLASS Z: Shares sold................................. 4,006,292 5,892,671 3,932,560 33,169,321 13,907,825 592,742 Shares issued for distributions reinvested.. -- -- 379,248 312,399 1,009,178 37,677 Shares redeemed............................. (2,819,286) (7,620,153) (9,102,129) (19,471,607) (17,459,206) (812,144) ----------- ------------ ------------ ------------ ------------ ----------- Net increase (decrease).................. 1,187,006 (1,727,482) (4,790,321) 14,010,113 (2,542,203) (181,725) =========== ============ ============ ============ ============ ===========
(a) The Funds have changed their fiscal year end from December 31 to August 31. 165 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 5 -- CAPITAL STOCK ACTIVITY (CONT.)
COLUMBIA FUNDS FOR THE PERIOD ENDED AUGUST 31, 2003 (a) SHORT FIXED NATIONAL STRATEGIC TERM INCOME MUNICIPAL TECHNOLOGY INVESTOR BALANCED BOND SECURITIES BOND FUND FUND FUND FUND FUND FUND ------------ ------------- ------------- ------------- ------------ ------------ AMOUNTS: CLASS A: Sales .......................... $ 795,971 $ 1,062,103 $ 621,075 $ 40,026,783 $ 9,909,718 $ 553,278 Distributions reinvested ....... -- -- 2,818 203,076 65,705 5,930 Redemptions .................... (503,942) (5,265,019) (133,619) (8,119,243) (3,233,766) (221,347) ------------ ------------- ------------- ------------- ------------- ----------- Net increase (decrease) ..... $ 292,029 $ (4,202,916) $ 490,274 $ 32,110,616 $ 6,741,657 $ 337,861 ============ ============= ============= ============= ============= =========== CLASS B: Sales .......................... $ 1,267,177 $ 901,976 $ 2,842,073 $ 25,355,903 $ 3,564,890 $ 608,830 Distributions reinvested ....... -- -- 7,724 132,630 41,001 4,713 Redemptions .................... (239,637) (390,511) (311,808) (4,540,064) (588,947) (79,981) ------------ ------------- ------------- ------------- ------------- ----------- Net increase ................ $ 1,027,540 $ 511,465 $ 2,537,989 $ 20,948,469 $ 3,016,944 $ 533,562 ============ ============= ============= ============= ============= =========== CLASS D: Sales .......................... $ 123,446 $ 397,532 $ 487,690 $ 15,983,699 $ 3,084,131 $ 410,170 Distributions reinvested ....... -- -- 2,764 132,466 20,715 2,986 Redemptions .................... (115,105) (149,190) (224,597) (2,657,104) (849,629) (12,486) ------------ ------------- ------------- ------------- ------------- ----------- Net increase ................ $ 8,341 $ 248,342 $ 265,857 $ 13,459,061 $ 2,255,217 $ 400,670 ============ ============= ============= ============= ============= =========== CLASS G: Sales .......................... -- -- -- $ 168,060 -- -- Distributions reinvested ....... -- -- -- 18,273 -- -- Redemptions .................... -- -- -- (437,235) -- -- ------------ ------------- ------------- ------------- ------------- ----------- Net decrease ................ -- -- -- $ (250,902) -- -- ============ ============= ============= ============= ============= =========== CLASS T: Sales .......................... -- -- -- $ 3,195,681 -- -- Distributions reinvested ....... -- -- -- 397,049 -- -- Redemptions .................... -- -- -- (6,031,954) -- -- ------------ ------------- ------------- ------------- ------------- ----------- Net decrease ................ -- -- -- $ (2,439,224) -- -- ============ ============= ============= ============= ============= =========== CLASS Z: Sales .......................... $ 18,434,013 $ 84,681,724 $ 71,002,827 $ 289,096,535 $ 189,047,650 $ 6,133,480 Distributions reinvested ....... -- -- 6,864,708 2,717,394 13,708,472 387,633 Redemptions .................... (12,505,086) (105,413,125) (162,992,982) (169,227,269) (236,640,077) (8,377,987) ------------ ------------- ------------- ------------- ------------- ----------- Net increase (decrease) ..... $ 5,928,927 $ (20,731,401) $ (85,125,447) $ 122,586,660 $ (33,883,955) $(1,856,874) ============ ============= ============= ============= ============= =========== Total Capital Share Transactions $ 7,256,837 $ (24,174,510) $ (81,831,327) $ 186,414,680 $ (21,870,137) $ (584,781) ============ ============= ============= ============= ============= ===========
(a) The Funds have changed their fiscal year end from December 31 to August 31. 166 NOTES TO FINANCIAL STATEMENTS - --------------------------------------------------------------------------------
COLUMBIA FUNDS FOR THE PERIOD ENDED AUGUST 31, 2003 (a) OREGON MUNICIPAL HIGH DAILY BOND YIELD INCOME FUND FUND COMPANY ------------ ------------ ------------ SHARES: CLASS A: Shares sold........................................ 143,490 25,041,610 -- Shares issued for distributions reinvested......... 1,224 450,683 -- Shares redeemed.................................... (8,295) (6,784,180) -- ------------ ------------ ------------ Net increase.................................... 136,419 18,708,113 -- ============ ============ ============ CLASS B: Shares sold........................................ 52,585 9,063,139 -- Shares issued for distributions reinvested......... 334 148,406 -- Shares redeemed.................................... (1,187) (609,559) -- ------------ ------------ ------------ Net increase.................................... 51,732 8,601,986 -- ============ ============ ============ CLASS D: Shares sold........................................ 51,705 10,747,325 -- Shares issued for distributions reinvested......... 628 172,120 -- Shares redeemed.................................... (31,042) (873,716) -- ------------ ------------ ------------ Net increase.................................... 21,291 10,045,729 -- ============ ============ ============ CLASS Z: Shares sold........................................ 10,541,884 100,424,297 468,052,097 Shares issued for distributions reinvested......... 910,985 3,670,269 4,068,237 Shares redeemed.................................... (12,534,293) (47,029,601) (710,031,351) ------------ ------------ ------------ Net increase (decrease) ........................ (1,081,424) 57,064,965 (237,911,017) ============ ============ ============
(a) The Funds have changed their fiscal year end from December 31 to August 31. 167 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 5 -- CAPITAL STOCK ACTIVITY (CONT.) COLUMBIA FUNDS FOR THE PERIOD ENDED AUGUST 31, 2003 (a) OREGON MUNICIPAL HIGH DAILY BOND YIELD INCOME FUND FUND COMPANY ------------- ------------- ------------- AMOUNTS: CLASS A: Sales .......................... $ 1,801,219 $ 213,784,547 -- Distributions reinvested ....... 15,231 3,856,013 -- Redemptions .................... (103,112) (57,991,328) -- ------------- ------------- ------------- Net increase ................ $ 1,713,338 $ 159,649,232 -- ============= ============= ============= CLASS B: Sales .......................... $ 657,645 $ 77,330,185 -- Distributions reinvested ....... 4,158 1,269,735 -- Redemptions .................... (15,171) (5,189,719) -- ------------- ------------- ------------- Net increase ................ $ 646,632 $ 73,410,201 -- ============= ============= ============= CLASS D: Sales .......................... $ 648,502 $ 91,694,699 -- Distributions reinvested ....... 7,849 1,472,483 -- Redemptions .................... (389,956) (7,476,795) -- ------------- ------------- ------------- Net increase ................ $ 266,395 $ 85,690,387 -- ============= ============= ============= CLASS Z: Sales .......................... $ 131,976,815 $ 857,268,253 $ 468,052,097 Distributions reinvested ....... 11,381,588 31,357,503 4,068,237 Redemptions .................... (156,819,380) (401,243,637) (710,031,351) ------------- ------------- ------------- Net increase (decrease) ..... $ (13,460,977) $ 487,382,119 $(237,911,017) ============= ============= ============= Total Capital Share Transactions $ (10,834,612) $ 806,131,939 $(237,911,017) ============= ============= ============= (a) The Funds have changed their fiscal year end from December 31 to August 31. 168 NOTES TO FINANCIAL STATEMENTS - --------------------------------------------------------------------------------
COLUMBIA FUNDS FOR THE YEAR ENDED DECEMBER 31, 2002 REAL COMMON INTERNATIONAL MID CAP SMALL CAP ESTATE STOCK GROWTH STOCK GROWTH GROWTH EQUITY FUND (a) FUND (b) FUND (a) FUND (c) FUND FUND (a) ------------ ------------ ------------ ------------ ------------ ------------ SHARES: CLASS A: Shares sold................................. 2,138 6,415 103,222 15,672 -- 50,286 Shares issued in connection with merger..... -- 142,906 2,026,408 68,335 -- -- Shares issued for distributions reinvested.. 2 -- -- -- -- 614 Shares redeemed............................. -- (1,651) (120,925) (4,112) -- (41) ------------ ------------ ------------ ------------ ------------ ------------ Net increase............................. 2,140 147,670 2,008,705 79,895 -- 50,859 ============ ============ ============ ============ ============ ============ CLASS B: Shares sold................................. 7,642 5,492 49,073 7,078 -- 59,855 Shares issued in connection with merger..... -- -- 1,117,525 230,587 -- -- Shares issued for distributions reinvested.. 25 -- -- -- -- 426 Shares redeemed............................. (328) -- (76,334) (8,494) -- (27) ------------ ------------ ------------ ------------ ------------ ------------ Net increase............................. 7,339 5,492 1,090,264 229,171 -- 60,254 ============ ============ ============ ============ ============ ============ CLASS D: Shares sold................................. 2,972 4,966 16,230 11,403 -- 20,247 Shares issued in connection with merger..... -- -- 56,019 18,373 -- -- Shares issued for distributions reinvested.. 7 -- -- -- -- 234 Shares redeemed............................. (968) -- (18,196) (431) -- -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase............................. 2,011 4,966 54,053 29,345 -- 20,481 ============ ============ ============ ============ ============ ============ CLASS G: Shares sold................................. -- 780 -- 222 -- -- Shares issued in connection with merger..... -- 668,443 -- 51,696 -- -- Shares redeemed............................. -- (11,143) -- (913) -- -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase............................. -- 658,080 -- 51,005 -- -- ============ ============ ============ ============ ============ ============ CLASS T: Shares sold................................. -- -- -- 1,181 -- -- Shares issued in connection with merger..... -- -- -- 1,766,763 -- -- Shares redeemed............................. -- -- -- (12,506) -- -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase............................. -- -- -- 1,755,438 -- -- ============ ============ ============ ============ ============ ============ CLASS Z: Shares sold................................. 7,624,871 6,673,385 14,151,430 23,256,300 19,739,178 33,091,005 Shares issued in connection with merger..... -- 4,131,819 1,426,094 16,875,517 -- -- Shares issued for distributions reinvested.. 153,392 100 48,107 -- -- 1,648,657 Shares redeemed............................. (13,944,732) (14,167,826) (12,634,316) (25,658,966) (17,331,161) (25,701,989) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease).................. (6,166,469) (3,362,522) 2,991,315 14,472,851 2,408,017 9,037,673 ============ ============ ============ ============ ============ ============
(a) Effective November 1, 2002, the Fund began offering four classes of shares: Class A, Class B, Class D and Class Z shares. Prior to November 1, 2002, the Fund was single class which was subsequently named Class Z shares. (b) Effective November 1, 2002, the Fund began offering five classes of shares: Class A, Class B, Class D, Class G and Class Z shares. Prior to November 1, 2002, the Fund was single class which was subsequently named Class Z shares. (c) Effective November 1, 2002, the Fund began offering six classes of shares: Class A, Class B, Class D, Class G, Class T and Class Z shares. Prior to November 1, 2002, the Fund was single class which was subsequently named Class Z shares. 169 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 5 -- CAPITAL STOCK ACTIVITY (CONT.)
COLUMBIA FUNDS FOR THE YEAR ENDED DECEMBER 31, 2002 REAL COMMON INTERNATIONAL MID CAP SMALL CAP ESTATE STOCK GROWTH STOCK GROWTH GROWTH EQUITY FUND (a) FUND (b) FUND (a) FUND (c) FUND FUND (a) ------------ ------------- ------------- ------------- -------------- ------------- AMOUNTS: CLASS A: Sales ............................... $ 31,961 $ 135,724 $ 1,040,525 $ 237,394 -- $ 889,637 Proceeds received in connection with merger ........................ -- 3,133,045 20,243,813 1,049,181 -- -- Distributions reinvested ............ 24 -- -- -- -- 10,830 Redemptions ......................... -- (35,026) (1,215,758) (61,507) -- (701) ------------- ------------- ------------- ------------- -------------- ------------- Net increase ..................... $ 31,985 $ 3,233,743 $ 20,068,580 $ 1,225,068 -- $ 899,766 ============= ============= ============= ============= ============== ============= CLASS B: Sales ............................... $ 117,918 $ 119,511 $ 492,261 $ 106,916 -- $ 1,057,426 Proceeds received in connection with merger ........................ -- -- 11,164,070 3,540,022 -- -- Distributions reinvested ............ 365 -- -- -- -- 7,526 Redemptions ......................... (5,120) -- (768,135) (127,352) -- (486) ------------- ------------- ------------- ------------- -------------- ------------- Net increase ..................... $ 113,163 $ 119,511 $ 10,888,196 $ 3,519,586 -- $ 1,064,466 ============= ============= ============= ============= ============== ============= CLASS D: Sales ............................... $ 46,518 $ 105,516 $ 162,310 $ 172,855 -- $ 355,423 Proceeds received in connection with merger ........................ -- -- 559,632 282,040 -- -- Distributions reinvested ............ 105 -- -- -- -- 4,139 Redemptions ......................... (14,682) -- (181,537) (6,374) -- -- ------------- ------------- ------------- ------------- -------------- ------------- Net increase ..................... $ 31,941 $ 105,516 $ 540,405 $ 448,521 -- $ 359,562 ============= ============= ============= ============= ============== ============= CLASS G: Sales ............................... -- $ 16,449 -- $ 3,363 -- -- Proceeds received in connection with merger ........................ -- 14,636,657 -- 794,054 -- -- Redemptions ......................... -- (235,662) -- (13,602) -- -- ------------- ------------- ------------- ------------- -------------- ------------- Net increase ..................... -- $ 14,417,444 -- $ 783,815 -- -- ============= ============= ============= ============= ============== ============= CLASS T: Sales ............................... -- -- -- $ 17,735 -- -- Proceeds received in connection with merger ........................ -- -- -- 27,163,275 -- -- Redemptions ......................... -- -- -- (187,071) -- -- ------------- ------------- ------------- ------------- -------------- ------------- Net increase ..................... -- -- -- $ 26,993,939 -- -- ============= ============= ============= ============= ============== ============= CLASS Z: Sales ............................... $ 129,705,574* $ 165,334,435 $ 150,103,257 $ 377,870,023 $ 396,004,404 $ 607,721,107 Proceeds received in connection with merger ........................ -- 90,545,496 14,246,687 259,343,536 -- -- Distributions reinvested ............ 2,267,130 2,235 478,672 -- -- 30,201,439 Redemptions ......................... (232,525,563) (346,428,134) (134,815,113) (417,250,145) (327,998,840) (466,134,043) ------------- ------------- ------------- ------------- -------------- ------------- Net increase (decrease) .......... $(100,552,859) $ (90,545,968) $ 30,013,503 $ 219,963,414 $ 68,005,564 $ 171,788,503 ============= ============= ============= ============= ============== ============= Total Capital Share Transactions .... $(100,375,770) $ (72,669,754) $ 61,510,684 $ 252,934,343 $ 68,005,564 $ 174,112,297 ============= ============= ============= ============= ============== =============
* Includes $4,174 of securities received in an in-kind transfer. (a) Effective November 1, 2002, the Fund began offering four classes of shares: Class A, Class B, Class D and Class Z shares. Prior to November 1, 2002, the Fund was single class which was subsequently named Class Z shares. (b) Effective November 1, 2002, the Fund began offering five classes of shares: Class A, Class B, Class D, Class G and Class Z shares. Prior to November 1, 2002, the Fund was single class which was subsequently named Class Z shares. (c) Effective November 1, 2002, the Fund began offering six classes of shares: Class A, Class B, Class D, Class G, Class T and Class Z shares. Prior to November 1, 2002, the Fund was single class which was subsequently named Class Z shares. 170 NOTES TO FINANCIAL STATEMENTS - --------------------------------------------------------------------------------
COLUMBIA FUNDS FOR THE YEAR ENDED DECEMBER 31, 2002 SHORT FIXED NATIONAL STRATEGIC TERM INCOME MUNICIPAL TECHNOLOGY INVESTOR BALANCED BOND SECURITIES BOND FUND (a) FUND (a) FUND (a) FUND (b) FUND (a) FUND (a) ------------ ----------- ----------- ----------- ----------- ----------- SHARES: CLASS A: Shares sold .............................. 266 16,466 8,288 648,705 69,868 6,496 Shares issued in connection with merger .. -- 4,196,653 -- -- -- -- Shares issued for distributions reinvested -- -- 38 712 19 41 Shares redeemed .......................... -- (135,115) (1) (10,279) -- -- ----------- ----------- ----------- ----------- ----------- ----------- Net increase .......................... 266 4,078,004 8,325 639,138 69,887 6,537 =========== =========== =========== =========== =========== =========== CLASS B: Shares sold .............................. 1,777 23,766 34,842 724,659 108,490 21,761 Shares issued in connection with merger .. -- 163,845 -- -- -- -- Shares issued for distributions reinvested -- -- 118 571 148 89 Shares redeemed .......................... -- (8,208) (285) (3,436) (257) (14,822) ----------- ----------- ----------- ----------- ----------- ----------- Net increase .......................... 1,777 179,403 34,675 721,794 108,381 7,028 =========== =========== =========== =========== =========== =========== CLASS D: Shares sold .............................. 263 1,170 25,391 630,014 31,506 8,119 Shares issued in connection with merger .. -- 27,645 -- -- -- -- Shares issued for distributions reinvested -- -- 100 1,027 38 32 Shares redeemed .......................... -- (1,702) -- (28,832) -- (3,292) ----------- ----------- ----------- ----------- ----------- ----------- Net increase .......................... 263 27,113 25,491 602,209 31,544 4,859 =========== =========== =========== =========== =========== =========== CLASS G: Shares sold .............................. -- -- -- 8,127 -- -- Shares issued in connection with merger .. -- -- -- 208,508 -- -- Shares issued for distributions reinvested -- -- -- 235 -- -- Shares redeemed .......................... -- -- -- (730) -- -- ----------- ----------- ----------- ----------- ----------- ----------- Net increase .......................... -- -- -- 216,140 -- -- =========== =========== =========== =========== =========== =========== CLASS T: Shares sold .............................. -- -- -- 63,115 -- -- Shares issued in connection with merger .. -- -- -- 3,594,178 -- -- Shares issued for distributions reinvested -- -- -- 5,002 -- -- Shares redeemed .......................... -- -- -- (104,000) -- -- ----------- ----------- ----------- ----------- ----------- ----------- Net increase .......................... -- -- -- 3,558,295 -- -- =========== =========== =========== =========== =========== =========== CLASS Z: Shares sold .............................. 2,055,133 24,026,235 6,801,092 16,131,131 22,424,154 1,109,593 Shares issued in connection with merger .. -- 180,824 -- 22,121,411 -- -- Shares issued for distributions reinvested -- 171,442 1,137,024 426,395 1,948,592 64,411 Shares redeemed .......................... (1,621,025) (18,027,370) (17,367,916) (9,419,905) (19,120,878) (981,956) ----------- ----------- ----------- ----------- ----------- ----------- Net increase (decrease) ............... 434,108 6,351,131 (9,429,800) 29,259,032 5,251,868 192,048 =========== =========== =========== =========== =========== ===========
(a) Effective November 1, 2002, the Fund began offering four classes of shares: Class A, Class B, Class D and Class Z shares. Prior to November 1, 2002, the Fund was single class which was subsequently named Class Z shares. (b) Effective November 1, 2002, the Fund began offering six classes of shares: Class A, Class B, Class D, Class G, Class T and Class Z shares. Prior to November 1, 2002, the Fund was single class which was subsequently named Class Z shares. 171 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 5 -- CAPITAL STOCK ACTIVITY (CONT.)
COLUMBIA FUNDS FOR THE YEAR ENDED DECEMBER 31, 2002 SHORT FIXED NATIONAL STRATEGIC TERM INCOME MUNICIPAL TECHNOLOGY INVESTOR BALANCED BOND SECURITIES BOND FUND (a) FUND (a) FUND (a) FUND (b) FUND (a) FUND (a) ------------- ------------- ------------- ------------- ------------- ------------- AMOUNTS: CLASS A: Sales ............................. $ 1,013 $ 220,586 $ 147,819 $ 5,597,578 $ 939,670 $ 66,135 Proceeds received in connection with merger ...................... -- 54,514,520 -- -- -- -- Distributions reinvested .......... -- -- 668 6,168 252 425 Redemptions ....................... -- (1,789,207) (20) (88,636) -- -- ------------- ------------- ------------- ------------- ------------- ------------- Net increase ................... $ 1,013 $ 52,945,899 $ 148,467 $ 5,515,110 $ 939,922 $ 66,560 ============= ============= ============= ============= ============= ============= CLASS B: Sales ............................. $ 6,709 $ 316,907 $ 622,186 $ 6,252,006 $ 1,456,255 $ 222,588 Proceeds received in connection with merger ...................... -- 2,128,341 -- -- -- -- Distributions reinvested .......... -- -- 2,064 4,943 1,998 906 Redemptions ....................... -- (108,351) (5,115) (29,668) (3,454) (150,595) ------------- ------------- ------------- ------------- ------------- ------------- Net increase ................... $ 6,709 $ 2,336,897 $ 619,135 $ 6,227,281 $ 1,454,799 $ 72,899 ============= ============= ============= ============= ============= ============= CLASS D: Sales ............................. $ 1,000 $ 15,708 $ 456,181 $ 5,435,948 $ 421,439 $ 83,038 Proceeds received in connection with merger ...................... -- 359,105 -- -- -- -- Distributions reinvested .......... -- -- 1,738 8,883 510 322 Redemptions ....................... -- (22,407) -- (248,791) -- (33,443) ------------- ------------- ------------- ------------- ------------- ------------- Net increase ................... $ 1,000 $ 352,406 $ 457,919 $ 5,196,040 $ 421,949 $ 49,917 ============= ============= ============= ============= ============= ============= CLASS G: Sales ............................. -- -- -- $ 69,466 -- -- Proceeds received in connection with merger ...................... -- -- -- 1,797,110 -- -- Distributions reinvested .......... -- -- -- 2,041 -- -- Redemptions ....................... -- -- -- (6,301) -- -- ------------- ------------- ------------- ------------- ------------- ------------- Net increase ................... -- -- -- $ 1,862,316 -- -- ============= ============= ============= ============= ============= ============= CLASS T: Sales ............................. -- -- -- $ 544,886 -- -- Proceeds received in connection with merger ...................... -- -- -- 30,982,225 -- -- Distributions reinvested .......... -- -- -- 43,369 -- -- Redemptions ....................... -- -- -- (898,480) -- -- ------------- ------------- ------------- ------------- ------------- ------------- Net increase ................... -- -- -- $ 30,672,000 -- -- ============= ============= ============= ============= ============= ============= CLASS Z: Sales ............................. $ 10,220,887 $ 352,586,497 $ 129,567,321 $ 138,763,864 $ 299,097,456 $ 11,268,258 Proceeds received in connection with merger ...................... -- 2,348,913 -- 190,685,846 -- -- Distributions reinvested .......... -- 2,187,604 20,929,510 3,668,146 25,971,318 649,959 Redemptions ....................... (7,491,197) (244,650,805) (325,499,332) (80,968,926) (254,637,100) (9,873,648) ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) ........ $ 2,729,690 $ 112,472,209 $(175,002,501) $ 252,148,930 $ 70,431,674 $ 2,044,569 ============= ============= ============= ============= ============= ============= Total Capital Share Transactions .. $ 2,738,412 $ 168,107,411 $(173,776,980) $ 301,621,677 $ 73,248,344 $ 2,233,945 ============= ============= ============= ============= ============= =============
(a) Effective November 1, 2002, the Fund began offering four classes of shares: Class A, Class B, Class D and Class Z shares. Prior to November 1, 2002, the Fund was single class which was subsequently named Class Z shares. (b) Effective November 1, 2002, the Fund began offering six classes of shares: Class A, Class B, Class D, Class G, Class T and Class Z shares. Prior to November 1, 2002, the Fund was single class which was subsequently named Class Z shares. 172 NOTES TO FINANCIAL STATEMENTS - --------------------------------------------------------------------------------
COLUMBIA FUNDS FOR THE YEAR ENDED DECEMBER 31, 2002 OREGON MUNICIPAL HIGH DAILY BOND YIELD INCOME FUND (a) FUND (a) COMPANY ------------ ------------ -------------- SHARES: CLASS A: Shares sold....................................... 37,901 4,382,301 -- Shares issued for distributions reinvested........ 236 10,597 -- Shares redeemed................................... -- (329,642) -- ------------ ------------ -------------- Net increase................................... 38,137 4,063,256 -- ============ ============ ============== CLASS B: Shares sold....................................... 33,682 2,007,189 -- Shares issued for distributions reinvested........ 170 3,910 -- Shares redeemed................................... (3,990) (14,669) -- ------------ ------------ -------------- Net increase................................... 29,862 1,996,430 -- ============ ============ ============== CLASS D: Shares sold....................................... 37,686 2,151,932 -- Shares issued for distributions reinvested........ 109 4,089 -- Shares redeemed................................... (1,979) (154) -- ------------ ------------ -------------- Net increase................................... 35,816 2,155,867 -- ============ ============ ============== CLASS Z: Shares sold....................................... 13,500,076 89,490,322 1,214,530,352 Shares issued for distributions reinvested........ 1,896,736 3,386,949 14,408,323 Shares redeemed................................... (15,383,205) (35,810,741) (1,346,398,974) ------------ ------------ -------------- Net increase (decrease)........................ 13,607 57,066,530 (117,460,299) ============ ============ ==============
(a) Effective November 1, 2002, the Fund began offering four classes of shares: Class A, Class B, Class D and Class Z shares. Prior to November 1, 2002, the Fund was single class which was subsequently named Class Z shares. 173 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 5 -- CAPITAL STOCK ACTIVITY (CONT.) COLUMBIA FUNDS FOR THE YEAR ENDED DECEMBER 31, 2002 OREGON MUNICIPAL HIGH DAILY BOND YIELD INCOME FUND (a) FUND (a) COMPANY ------------- ------------- --------------- AMOUNTS: CLASS A: Sales .......................... $ 471,456 $ 36,558,214 -- Distributions reinvested ....... 2,929 88,687 -- Redemptions .................... -- (2,758,792) -- ------------- ------------- --------------- Net increase ................ $ 474,385 $ 33,888,109 -- ============= ============= =============== CLASS B: Sales .......................... $ 419,900 $ 16,716,021 -- Distributions reinvested ....... 2,114 32,718 -- Redemptions .................... (49,521) (122,617) -- ------------- ------------- --------------- Net increase ................ $ 372,493 $ 16,626,122 -- ============= ============= =============== CLASS D: Sales .......................... $ 472,508 $ 17,940,183 -- Distributions reinvested ....... 1,356 34,217 -- Redemptions .................... (24,640) (1,285) -- ------------- ------------- --------------- Net increase ................ $ 449,224 $ 17,973,115 -- ============= ============= =============== CLASS Z: Sales .......................... $ 167,348,905 $ 756,219,396 $ 1,214,530,352 Distributions reinvested ....... 23,528,226 28,634,236 14,408,323 Redemptions .................... (190,394,095) (301,863,222) (1,346,398,974) ------------- ------------- --------------- Net increase (decrease) ..... $ 483,036 $ 482,990,410 $ (117,460,299) ============= ============= =============== Total Capital Share Transactions $ 1,779,138 $ 551,477,756 $ (117,460,299) ============= ============= =============== (a) Effective November 1, 2002, the Fund began offering four classes of shares: Class A, Class B, Class D and Class Z shares. Prior to November 1, 2002, the Fund was single class which was subsequently named Class Z shares. 174 NOTES TO FINANCIAL STATEMENTS - --------------------------------------------------------------------------------
COLUMBIA FUNDS FOR THE YEAR ENDED DECEMBER 31, 2001 REAL COMMON INTERNATIONAL MID CAP SMALL CAP ESTATE STOCK GROWTH STOCK GROWTH GROWTH EQUITY FUND FUND FUND FUND FUND FUND ------------- ------------- ------------- ------------- ------------- ------------- SHARES: CLASS Z: Shares sold ...................... 10,491,254 6,698,004 10,569,626 10,827,578 23,700,865 19,257,087 Shares issued for distributions reinvested ...................... 145,205 191,120 10,692 1,812,540 -- 1,287,767 Shares redeemed .................. (13,300,679) (12,489,763) (11,176,755) (14,683,575) (15,927,385) (10,494,908) ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) ....... (2,664,220) (5,600,639) (596,437) (2,043,457) 7,773,480 10,049,946 ============= ============= ============= ============= ============= ============= AMOUNTS: CLASS Z: Sales ............................ $ 223,544,221* $ 224,936,719 $ 137,760,985 $ 233,729,747 $ 523,950,512 $ 342,012,407 Distributions reinvested ......... 2,904,776 6,121,573 128,621 35,253,904 -- 22,872,415 Redemptions ...................... (281,981,291) (422,010,636) (145,054,766) (307,848,091) (348,625,888) (185,458,069) ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) ....... $ (55,532,294) $(190,952,344) $ (7,165,160) $ (38,864,440) $ 175,324,624 $ 179,426,753 ============= ============= ============= ============= ============= =============
SHORT FIXED NATIONAL STRATEGIC TERM INCOME MUNICIPAL TECHNOLOGY INVESTOR BALANCED BOND SECURITIES BOND FUND FUND FUND FUND FUND FUND ------------ ------------- ------------- ------------ ------------- ----------- SHARES: CLASS Z: Shares sold ................... 2,782,881 13,572,048 10,632,218 6,668,086 18,021,813 647,652 Shares issued for distributions reinvested ................... -- 34,400 1,349,053 276,496 1,807,564 51,314 Shares redeemed ............... (1,591,291) (4,847,656) (13,467,113) (3,873,523) (13,794,317) (399,171) ------------ ------------- ------------- ------------ ------------- ----------- Net increase (decrease) .... 1,191,590 8,758,792 (1,485,842) 3,071,059 6,035,060 299,795 ============ ============= ============= ============ ============= =========== AMOUNTS: CLASS Z: Sales ......................... $ 18,876,487 $ 178,940,298 $ 229,671,103 $ 57,224,022 $ 237,931,931 $ 6,424,664 Distributions reinvested ...... -- 499,485 27,875,444 2,358,854 23,905,520 507,903 Redemptions ................... (9,287,489) (63,849,817) (287,224,069) (33,118,729) (181,939,632) (3,955,073) ------------ ------------- ------------- ------------ ------------- ----------- Net increase (decrease) .... $ 9,588,998 $ 115,589,966 $ (29,677,522) $ 26,464,147 $ 79,897,819 $ 2,977,494 ============ ============= ============= ============ ============= ===========
* Includes $17,070 of securities received in an in-kind transfer. 175 NOTES TO FINANCIAL STATEMENTS - --------------------------------------------------------------------------------
COLUMBIA FUNDS FOR THE YEAR ENDED DECEMBER 31, 2001 OREGON MUNICIPAL HIGH DAILY BOND YIELD INCOME FUND FUND COMPANY ------------- ------------- --------------- SHARES: CLASS Z: Shares sold .............................. 12,007,422 34,217,948 1,507,707,483 Shares issued for distributions reinvested 1,490,891 1,451,820 45,211,017 Shares redeemed .......................... (8,798,807) (19,588,487) (1,497,533,872) ------------- ------------- --------------- Net increase .......................... 4,699,506 16,081,281 55,384,628 ============= ============= =============== AMOUNTS: CLASS A: Sales .................................... $ 147,270,468 $ 308,626,705 $ 1,507,707,483 Distributions reinvested ................. 18,269,042 13,033,592 45,211,017 Redemptions .............................. (107,912,289) (175,676,728) (1,497,533,872) ------------- ------------- --------------- Net increase .......................... $ 57,627,221 $ 145,983,569 $ 55,384,628 ============= ============= ===============
NOTE 6 -- LINE OF CREDIT The Funds participate in a $100,000,000 uncommitted line of credit that covers all the Funds together with the CMG Fund Trust, an affiliated group of funds managed by the investment advisor. The uncommitted line of credit expires on July 2, 2004. The Funds did not utilize the line of credit during the period ended August 31, 2003. NOTE 7 -- SUBSEQUENT EVENT At a special meeting of shareholders held on October 7, 2003, shareholders of the Funds approved a proposal to elect 9 new directors as well as three of the incumbent directors of the Board. The Board of Directors now consists of 12 directors which will be responsible for board oversight of 124 funds in the Columbia Funds Complex (including the former Liberty Funds, former Stein Roe Funds, Columbia Funds and CMG Funds). 176 REPORT OF INDEPENDENT AUDITORS - -------------------------------------------------------------------------------- TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF: Columbia Common Stock Fund, Inc. Columbia Growth Fund, Inc. Columbia International Stock Fund, Inc. Columbia Mid Cap Growth Fund, Inc. (formerly Columbia Special Fund, Inc.) Columbia Small Cap Growth Fund, Inc. (formerly Columbia Small Cap Fund, Inc.) Columbia Real Estate Equity Fund, Inc. Columbia Technology Fund, Inc. Columbia Strategic Investor Fund, Inc. (formerly Columbia Strategic Value Fund, Inc.) Columbia Balanced Fund, Inc. Columbia Short Term Bond Fund, Inc. Columbia Fixed Income Securities Fund, Inc. Columbia National Municipal Bond Fund, Inc. Columbia Oregon Municipal Bond Fund, Inc. Columbia High Yield Fund, Inc. Columbia Daily Income Company In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of each of the funds listed above comprising the Columbia Funds (collectively, the "Funds") at August 31, 2003, and the results of each of their operations, the changes in each of their net assets, and their financial highlights for the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as financial statements) are the responsibility of the Funds' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2003, by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP Boston, Massachusetts October 21, 2003 177 UNAUDITED INFORMATION - -------------------------------------------------------------------------------- FEDERAL INCOME TAX INFORMATION COLUMBIA INTERNATIONAL STOCK FUND Foreign taxes paid during the fiscal year ended August 31, 2003, amounting to $403,597 ($0.02 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. COLUMBIA BALANCED FUND 40.94% of the ordinary income distributed by the Fund, for the fiscal year ended August 31, 2003, qualifies for the corporate dividends received deduction. For non-corporate shareholders, 40.54% of income distributed by the Fund for the period ended August 31, 2003 represent qualified dividend income subject to the 15% income tax rate category. COLUMBIA NATIONAL MUNICIPAL BOND FUND For the fiscal year ended August 31, 2003, the Fund designates long-term capital gains of $10,985. 100% of the distributions from net investment income will be treated as exempt income for federal income tax purposes. COLUMBIA OREGON MUNICIPAL BOND FUND For the fiscal year ended August 31, 2003, the Fund designates long-term capital gains of $280,860. 99.97% of the distributions from net investment income will be treated as exempt income for federal income tax purposes. 178 OFFICERS AND DIRECTORS - -------------------------------------------------------------------------------- The Directors serve terms of indefinite duration. The names, addresses and ages of the Directors and officers of the Columbia Funds, 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 Director and other directorships they hold are shown below. Each officer listed below serves as an officer of each of the Columbia Funds. The Statement of Additional Information (SAI) contains additional information about the Directors and is available without charge upon request by calling the funds' distributor at 800-345-6611.
NUMBER OF PORTFOLIOS YEAR FIRST IN COLUMBIA POSITION ELECTED OR FUNDS COMPLEX OTHER NAME, ADDRESS WITH APPOINTED PRINCIPAL OCCUPATION(s) OVERSEEN BY DIRECTORSHIPS AND AGE FUNDS TO OFFICE 1 DURING PAST FIVE YEARS DIRECTOR HELD ------- ----- ---------- ---------------------- -------- ---- DISINTERESTED DIRECTORS: Douglas A. Hacker Director 1996 Executive Vice President - Strategy of 124 None (Age 48) United Airlines (airline) since December, P.O. Box 66100 2002 (formerly President of UAL Loyalty Chicago, IL 60666 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 Director 1996 Chief Administrative Officer and Senior Vice 124 None (Age 45) President, Kmart Holding Corporation since 3100 West Beaver Road September, 2003 (formerly Executive Vice Troy, MI 48084-3163 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 Director 1995 Private Investor since August, 1987 (formerly 126 3 None (Age 67) Chairman and Chief Executive Officer, U.S. 10701 Charleston Drive Plywood Corporation (building products Vero Beach, FL 32963 manufacturer)). Charles R. Nelson Director 1981 Professor of Economics, University of 124 None (Age 61) Washington, since January, 1976; Ford and Department of Economics Louisa Van Voorhis Professor of Political University of Washington Economy, University of Washington, since Seattle, WA 98195 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.
179 OFFICERS AND DIRECTORS - --------------------------------------------------------------------------------
NUMBER OF PORTFOLIOS YEAR FIRST IN COLUMBIA POSITION ELECTED OR FUNDS COMPLEX OTHER NAME, ADDRESS WITH APPOINTED PRINCIPAL OCCUPATION(s) OVERSEEN BY DIRECTORSHIPS AND AGE FUNDS TO OFFICE 1 DURING PAST FIVE YEARS DIRECTOR HELD ------- ----- ---------- ---------------------- -------- ---- DISINTERESTED DIRECTORS (CONTINUED): John J. Neuhauser Director 1985 Academic Vice President and Dean of 127 3,4 Saucony, Inc. (Age 60) Faculties since August, 1999, Boston College (athletic footwear); 84 College Road (formerly Dean, Boston College School of SkillSoft Corp. Chestnut Hill, MA Management from September, 1977 to (E-Learning) 02467-3838 September, 1999). Patrick J. Simpson Director 2000 Partner, Perkins Coie L.L.P. (formerly 124 None (Age 58) Partner, Stoel Rives Boley Jones & Grey). 1211 S.W. 5th Avenue Suite 1500 Portland, OR 97204 Thomas E. Stitzel Director 1998 Business Consultant since 1999 (formerly 124 None (Age 67) Professor of Finance from 1975 to 1999 and 2208 Tawny Woods Place Dean from 1977 to 1991, College of Business, Boise, ID 83706 Boise State University); Chartered Financial Analyst. Thomas C. Theobald Director 1996 Managing Director, William Blair Capital 124 Anixter (Age 66) Partners (private equity investing) since International 27 West Monroe Street, September, 1994 (formerly Chief Executive (network support Suite 3500 Officer and Chairman of the Board of Directors, equipment Chicago, IL 60606 Continental Bank Corporation prior thereto). distributor), Jones Lang LaSalle (real estate management services) and MONY Group (life insurance). Anne-Lee Verville Director 1998 Author and speaker on educational systems 125 4 Chairman of the (Age 58) needs (formerly General Manager, Global Board of Directors, 359 Stickney Hill Road Education Industry from 1994 to 1997, and Enesco Group, Inc. Hopkinton, NH 03229 President, Applications Solutions Division (designer, importer from 1991 to 1994, IBM Corporation (global and distributor of education and global applications)). giftware and collectibles). Richard L. Woolworth Director 1991 Chairman and Chief Executive Officer, The 124 NW Natural, (Age 62) Regence Group (healthcare maintenance a natural gas 100 S.W. Market Street organization) (formerly Chairman and Chief service provider. #1500 Executive Officer, BlueCross BlueShield of Portland, OR 97207 Oregon; Certified Public Accountant, Arthur Young & Company).
180 OFFICERS AND DIRECTORS - --------------------------------------------------------------------------------
NUMBER OF PORTFOLIOS YEAR FIRST IN COLUMBIA POSITION ELECTED OR FUNDS COMPLEX OTHER NAME, ADDRESS WITH APPOINTED PRINCIPAL OCCUPATION(s) OVERSEEN BY DIRECTORSHIPS AND AGE FUNDS TO OFFICE 1 DURING PAST FIVE YEARS DIRECTOR HELD ------- ----- ---------- ---------------------- -------- ---- INTERESTED DIRECTORS AND OFFICERS: Vicki L. Benjamin Chief 2001 Controller of the Columbia Funds (the (Age 42) Accounting former Liberty Funds) and of the Liberty One Financial Center Officer and All-Star Funds since May, 2002; Chief Boston, MA 02111 Vice President 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). Michael G. Clarke Controller 2000 Assistant Treasurer of Columbia Funds and (Age 33) and Vice Liberty All-Star Funds; Head of Compliance & One Financial Center President Trustee Reporting, Columbia Management Group; Boston, MA 02111 Prior to his current positions, Mr. Clarke was Vice President, Product Development, Liberty Funds Group LLC; Assistant Vice President, Fund Administration, Liberty Funds Group LLC; Audit Manager, Deloitte & Touche LLP. J. Kevin Connaughton Treasurer 2000 Treasurer of the Columbia Funds and of the (Age 39) and Chief Liberty All-Star Funds since December, 2000; One Financial Center Financial Vice President of the Advisor since April, 2003 Boston, MA 02111 Officer (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). William E. Mayer 2 Director 1994 Managing Partner, Park Avenue Equity 126 3 Lee Enterprises (Age 63) Partners (private equity) since February, 1999 (print media), 399 Park Avenue (formerly Founding Partner, Development WR Hambrecht Suite 3204 Capital LLC from November 1996 to February, + Co. (financial New York, NY 10022 1999; Dean and Professor, College of Business service provider) and Management, University of Maryland from and First Health October, 1992 to November, 1996). (healthcare).
181 OFFICERS AND DIRECTORS - --------------------------------------------------------------------------------
NUMBER OF PORTFOLIOS YEAR FIRST IN COLUMBIA POSITION ELECTED OR FUNDS COMPLEX OTHER NAME, ADDRESS WITH APPOINTED PRINCIPAL OCCUPATION(s) OVERSEEN BY DIRECTORSHIPS AND AGE FUNDS TO OFFICE 1 DURING PAST FIVE YEARS DIRECTOR HELD ------------- ----- ---------- ---------------------- -------- ---- INTERESTED DIRECTORS AND OFFICERS (CONTINUED): Joseph R. Palombo 2 Director, 2000 Executive Vice President and Chief Operating 125 5 None (Age 50) Chairman of Officer of Columbia Management Group, Inc. One Financial Center the Board (Columbia Management) since December, 2001 Boston, MA 02111 and President 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). Mark A. Wentzien Secretary 2000 Vice President of the Advisor. Prior to his current (Age 42) positions, Mr. Wentzien was Associate Counsel of 1300 S.W. Sixth Avenue the Advisor. Portland, OR 97201
1 In December 2000, the boards of each of the former Liberty Funds and former Stein Roe Funds were combined into one board of trustees responsible for the oversight of both fund groups (collectively, the "Liberty Board"). In October 2003, the trustees on the Liberty Board were elected to the boards of the Columbia Funds (the "Columbia Board") and of the CMG Funds (the "CMG Funds Board"); simultaneous with that election, Patrick J. Simpson and Richard L. Woolworth, who had been directors of 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. 182 This page intentionally left blank. 183 This page intentionally left blank. 184 This page intentionally left blank. 185 EAGLE HEAD LOGO ADVISED BY COLUMBIA MANAGEMENT ADVISORS, INC. DIRECTORS INVESTMENT ADVISOR --------------------- ------------------ DOUGLAS A. HACKER COLUMBIA MANAGEMENT ADVISORS, INC. JANET LANGFORD KELLY 1300 S.W. SIXTH AVENUE RICHARD W. LOWRY PORTLAND, OREGON 97201 CHARLES R. NELSON JOHN J. NEUHAUSER DISTRIBUTOR PATRICK J. SIMPSON ------------------ THOMAS E. STIZEL COLUMBIA FUNDS DISTRIBUTOR, INC. THOMAS C. THEOBALD ONE FINANCIAL CENTER ANNE-LEE VERVILLE BOSTON, MASSACHUSETTS 02111-2621 RICHARD L. WOOLWORTH WILLIAM E. MAYER LEGAL COUNSEL JOSEPH R. PALOMBO ------------------ STOEL RIVES LLP 900 S.W. FIFTH AVENUE, SUITE 2300 PORTLAND, OREGON 97204-1268 TRANSFER AGENT ---------------------------------- COLUMBIA FUNDS SERVICES, INC. P.O. BOX 8081 BOSTON, MASSACHUSETTS 02266-8081 This information must be preceded or accompanied by a current prospectus. Please read it carefully before investing.The managers' views contained in this report are subject to change at any time, based on market and other considerations. Portfolio changes should not be considered recommendations for action by individual investors. Funds distributed by Columbia Funds Distributor, Inc. Mutual fund shares are not insured by the FDIC or any other governmental entity; are not deposits or other obligations of, or guaranteed by, any bank; and involve risks, including loss of principal. COL-02/216P-0803 (10/03) 03/3223 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 (the "Board") determined on July 30, 2003 that the Audit Committee of the Board did not have an Audit Committee financial expert. On October 7, 2003, shareholders of the registrant elected nine new trustees, as well as three incumbent trustees, to the Board. The new Board is expected to appoint as Audit Committee members certain of the new trustees who have been determined by other affiliated registrants advised by the registrant's advisor, to be Audit Committee financial experts. The new Board has not yet met to reconstitute the Audit Committee or to consider the determination made by the other affiliated registrants. 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 Daily Income Company ----------------------------------------------------------- By (Signature and Title) /s/ Joseph R. Palombo ---------------------------------------------- Joseph R. Palombo, President Date November 7, 2003 ------------------------------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title) /s/ Joseph R. Palombo ---------------------------------------------- Joseph R. Palombo, President Date November 7, 2003 ------------------------------------------------------------------- By (Signature and Title) /s/ J. Kevin Connaughton ---------------------------------------------- J. Kevin Connaughton, Treasurer Date November 7, 2003 ------------------------------------------------------------------- EX-99.CODE ETH 3 file002.txt CODE OF ETHICS COLUMBIA MANAGEMENT GROUP FAMILY OF FUNDS CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND SENIOR FINANCIAL OFFICERS I. COVERED OFFICERS/PURPOSE OF THE CODE This Code of Ethics (the "Code") for the investment companies within the Columbia Management Group fund complex (collectively the "Funds" and each, a "Fund") applies to the Funds' Principal Executive Officer, Principal Financial Officer, Principal Accounting Officer, and Director of Trustee Administration (the "Covered Officers") for the purpose of promoting: o honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; o full, fair, accurate, timely and understandable disclosure in reports and documents that a Fund files with, or submits to, the Securities and Exchange Commission ("SEC"), and in other public communications made by a Fund; o compliance with applicable laws and governmental rules and regulations; o the prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and o accountability for adherence to the Code. Each Covered Officer shall adhere to a high standard of business ethics and shall be sensitive to situations that may give rise to actual or apparent conflicts of interest. II. ADMINISTRATION OF THE CODE The Boards of Trustees and Boards of Directors of the Funds (collectively, the "Board") shall designate an individual to be primarily responsible for the administration of the Code (the "Code Officer"). The Code shall be administered by the Columbia Management Group Compliance Department. In the absence of the Code Officer, his or her designee shall serve as the Code Officer, but only on a temporary basis. Each Fund has designated a chief legal officer (the "Chief Legal Officer") for purposes of the Sarbanes-Oxley Act of 2002 and the rules promulgated thereunder. The Chief Legal Officer of a Fund shall assist the Fund's Code Officer in administration of this Code. The Chief Legal Officer shall be responsible for applying this Code to specific situations in which questions are presented under it (in consultation with Fund counsel, where appropriate) and has the authority to interpret this Code in any particular situation. However, any waivers sought by a Covered Officer must be approved by each Audit Committee of the Funds (collectively, the "Audit Committee"). III. MANAGING CONFLICTS OF INTEREST OVERVIEW. A "conflict of interest" occurs when a Covered Officer's private interest interferes with the interests of, or his/her service to, a Fund. For example, a conflict of interest would arise if a Covered Officer, or a family member, receives improper personal benefits as a result of the Covered Officer's position with a Fund. Certain conflicts of interest arise out of the relationships between Covered Officers and a Fund and already are subject to conflict of interest provisions in the Investment Company Act of 1940 (the "Company Act") and the Investment Advisers Act of 1940 (the "Advisers Act"). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with a Fund because of their status as "affiliated persons" of the Fund. A Fund's and its investment adviser's compliance programs and procedures are designed to prevent, or identify and correct, violations of those provisions. This Code does not, and is not intended to, repeat or replace those programs and procedures, and such conflicts fall outside of the parameters of this Code. Although typically not presenting an opportunity for improper personal benefit, conflicts may arise from, or as a result of, the contractual relationship between a Fund and its investment adviser, administrator, principal underwriter, pricing and bookkeeping agent and/or transfer agent (each, a "Service Provider") of which the Covered Officers are also officers or employees. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for a Fund or for a Service Provider, or for both), be involved in establishing policies and implementing decisions that will have different effects on the Service Provider and a Fund. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the Fund and the Service Provider and is consistent with the performance by the Covered Officers of their duties as officers of a Fund. In addition, it is recognized by the Board that the Covered Officers may also be officers or employees of one or more other investment companies covered by this or other codes. Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions of the Company Act and the Advisers Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of a Fund. Each Covered Officer must: o not use personal influence or personal relationships improperly to influence investment decisions or financial reporting by a Fund whereby the Covered Officer or an immediate family member would benefit personally to the detriment of a Fund; and o not cause a Fund to take action, or fail to take action, for the individual personal benefit of the Covered Officer or an immediate family member rather than the benefit of the Fund.1. There are some conflict of interest situations that must be approved by the Code Officer, after consultation with the Chief Legal Officer. Those situations include, but are not limited to,: o service as director on the board of any public or private company; o the receipt of any gifts in excess of $100 in the aggregate from a third party that does or seeks to do business with the Funds during any 12-month period; o the receipt of any entertainment from any company with which a Fund has current or prospective business dealings, unless such entertainment is business-related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety; o any material ownership interest in, or any consulting or employment relationship with, any Fund service providers, other than its investment adviser, principal underwriter, administrator or any affiliated person thereof; o a direct or indirect material financial interest in commissions, transaction charges or spreads paid by a Fund for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officer's employment, such as compensation or equity ownership. IV. DISCLOSURE AND COMPLIANCE Each Covered Officer shall: o be familiar with the disclosure requirements generally applicable to the Funds; - ----------------------- 11 For purposes of this Code, personal trading activity of the Covered Officers shall be monitored in accordance with the Columbia Management Group Code of Ethics. Each Covered Officer shall be considered an "Access Person" under such Code. The term "immediate family" shall have the same meaning as provided in such Code. o not knowingly misrepresent, or cause others to misrepresent, facts about any Fund to others, whether within or outside the Fund, including to the Fund's trustees and auditors, and to governmental regulators and self-regulatory organizations; o to the extent appropriate within his/her area of responsibility, consult with other officers and employees of the Funds and the adviser with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Funds file with, or submit to, the SEC and in other public communications made by the Funds; and o promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations. V. REPORTING AND ACCOUNTABILITY Each Covered Officer must: o upon adoption of the Code (or after becoming a Covered Officer), affirm in writing to the Board that he/she has received, read and understands the Code; o annually affirm to the Board compliance with the requirements of the Code; o not retaliate against any other Covered Officer or any employee of the Funds or their affiliated persons for reports of potential violations that are made in good faith; o notify the Chief Legal Officer and the Code Officer promptly if he/she knows of any violation of this Code; and o respond to the trustee and officer questionnaires circulated periodically in connection with the preparation of disclosure documents for the Funds. The Code Officer shall maintain records of all activities related to this Code. The Funds will follow the procedures set forth below in investigating and enforcing this Code: o The Chief Legal Officer and/or the Code Officer will take all appropriate action to investigate any potential violation reported to him/her; o If, after such investigation, the Chief Legal Officer and the Code Officer believes that no violation has occurred, the Code Officer will notify the person(s) reporting the potential violation, and no further action is required; o Any matter that the Chief Legal Officer and/or the Code Officer believes is a violation will be reported to the Audit Committee; o If the Audit Committee concurs that a violation has occurred, it will inform and make a recommendation to the Board, which will consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures; notification to the Chief Executive Officer of Columbia Management Group; or a recommendation to sanction or dismiss the Covered Officer; o The Audit Committee will be responsible for granting waivers in its sole discretion; o Any changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules. The Chief Legal Officer shall: o report to the Audit Committee quarterly any approvals provided in accordance with Section III of this Code; and o report to the Audit Committee quarterly any violations of, or material issues arising under, this Code. VI. OTHER POLICIES AND PROCEDURES This Code shall be the sole code of ethics adopted by the Funds for the purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. Insofar as other polices or procedures of the Funds or the Funds' Service Providers govern or purport to govern the behavior or activities (including, but not limited to, personal trading activities) of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code. The Funds' and their investment advisers' and principal underwriter's codes of ethics under Rule 17j-1 under the Company Act and any policies and procedures of the Service Providers are separate requirements applicable to the Covered Officers and are not part of this Code. VII. AMENDMENTS All material amendments to this Code must be approved or ratified by the Board, including a majority of independent directors. VIII. CONFIDENTIALITY All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Board, the Covered Officers, the Chief Legal Officer, the Code Officer, outside audit firms and legal counsel to the Funds, and senior management of Columbia Management Group. IX. INTERNAL USE The Code is intended solely for the internal use by the Funds and does not constitute an admission, by or on behalf of any Fund, as to any fact, circumstance, or legal conclusion. EX-99.CERT 4 file003.txt CERTIFICATIONS I, Joseph R. Palombo, certify that: 1. I have reviewed this report on Form N-CSR of Columbia Daily Income Company; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (c) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent 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; and 5. The registrant's other certifying officers and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: November 7, 2003 /s/ Joseph R. Palombo ------------------------------------ Joseph R. Palombo, President I, J. Kevin Connaughton, certify that: 1. I have reviewed this report on Form N-CSR of Columbia Daily Income Company; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (c) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent 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; and 5. The registrant's other certifying officers and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: November 7, 2003 /s/ J. Kevin Connaughton --------------------------------------------- J. Kevin Connaughton, Chief Financial Officer EX-99.906CERT 5 file004.txt CERTIFICATIONS CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Certified Shareholder Report of Columbia Daily Income Company (the "Trust") on Form N-CSR for the period ending August 31, 2003, as filed with the Securities and Exchange Commission on the date hereof ("the Report"), the undersigned hereby certifies that, to his knowledge: 1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Trust. Date: November 7, 2003 /s/ Joseph R. Palombo -------------------------------------------- Joseph R. Palombo, President Date: November 7, 2003 /s/ J. Kevin Connaughton --------------------------------------------- J. Kevin Connaughton, Chief Financial Officer A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission (the "Commission") or its staff upon request. This certification is being furnished to the Commission solely pursuant to 18 U.S.C. ss.1350 and is not being filed as part of the Form N-CSR with the Commission. -----END PRIVACY-ENHANCED MESSAGE-----