-----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, HONwa4VJXDQCmtm9Hd5WSfW1TJ5W1uPNLboG3AfNlJhxTEPvKGvjhVuNKAR/3TA3 6YRcPyb88CJMh798R4PM8Q== 0000891804-04-001047.txt : 20040507 0000891804-04-001047.hdr.sgml : 20040507 20040507155728 ACCESSION NUMBER: 0000891804-04-001047 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040229 FILED AS OF DATE: 20040507 EFFECTIVENESS DATE: 20040507 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-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-02507 FILM NUMBER: 04789232 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-CSRS 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 811-06341 --------------------- Columbia Daily Income Company ------------------------------------------------------------------------------ (Exact name of registrant as specified in charter) 1301 SW Sixth Avenue, PO Box 1350, Portland, Oregon 97207 - ------------------------------------------------------------------------------ (Address of principal executive offices) (Zip code) Mark Wentzien, Esq. Columbia Management Group 1301 SW Sixth Avenue, PO Box 1350 Portland, Oregon 97207 - ------------------------------------------------------------------------------ (Name and address of agent for service) Registrant's telephone number, including area code: 1-503-222-3600 ------------------- Date of fiscal year end: August 31, 2004 ------------------ Date of reporting period: February 29, 2004 ----------------- 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 SEMIANNUAL REPORT FEBRUARY 29, 2004 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 Photo of Woman Standing TABLE OF CONTENTS Economic Update .................................... 1 Columbia Common Stock Fund ......................... 2 Columbia Growth Fund ............................... 5 Columbia International Stock Fund .................. 8 Columbia Mid Cap Growth Fund ....................... 11 Columbia Small Cap Growth Fund ..................... 14 Columbia Real Estate Equity Fund ................... 17 Columbia Technology Fund ........................... 20 Columbia Strategic Investor Fund ................... 23 Columbia Balanced Fund ............................. 26 Columbia Short Term Bond Fund ...................... 29 Columbia Fixed Income Securities Fund .............. 32 Columbia National Municipal Bond Fund .............. 35 Columbia Oregon Municipal Bond Fund ................ 38 Columbia High Yield Fund ........................... 41 Columbia Daily Income Company ...................... 44 Financial Statements ............................... 47 Shareholder Meeting Results ........................ 195 Important Information About This Report .................................. 196 Columbia Funds ..................................... 197 Economic and market conditions change frequently. There is no assurance that the trends described in this report will continue or commence. Not FDIC May Lose Value Insured No Bank Guarantee TO OUR FELLOW SHAREHOLDERS______________________________________________________ COLUMBIA FUNDS DEAR SHAREHOLDER: We are pleased to let you know that FleetBoston Financial Corporation and Bank of America Corporation have merged, effective April 1, 2004. As a result of the merger, Columbia Management Group became part of the Bank of America family of companies. Looking ahead, we believe this merger will be a real benefit to our shareholders. Preserving and leveraging our strengths, the combined organization will deliver additional research, management, and product capabilities to you. There are no immediate changes planned for fund names, product lines, or customer service contacts. As always, we will provide you with updates at www.columbiafunds.com or through other communications, such as newsletters and shareholder reports. As you might know, on March 15, 2004, FleetBoston Financial announced an agreement in principle with the staff of the Securities and Exchange Commission ("SEC") and the New York Attorney General to settle charges involving market timing in Columbia Management mutual funds. (Bank of America came to a similar settlement in principle at the same time.) The agreement will require the final approval of the SEC. This action reflects our full cooperation with the investigation and our strong wish to put this regrettable situation behind us. Columbia Management has taken and will continue to take steps to strengthen policies, procedures and oversight to curb frequent trading of Columbia fund shares. We also want you to know that your fund's Board of Directors has been energetic over the past year in strengthening its capacity to oversee the Columbia funds. Recently, the Board of Directors: o ELECTED AN INDEPENDENT DIRECTOR TO CHAIR THE TWELVE-PERSON BOARD. IN ADDITION, EACH COMMITTEE OF THE BOARD IS COMPRISED OF DIRECTORS WHO ARE COMPLETELY INDEPENDENT OF THE ADVISOR AND ITS AFFILIATES. o APPOINTED A CHIEF COMPLIANCE OFFICER OF THE COLUMBIA FUNDS, WHO REPORTS DIRECTLY TO EACH FUND'S AUDIT COMMITTEE. DIRECTORS WERE ALSO ASSIGNED TO FOUR SEPARATE INVESTMENT OVERSIGHT COMMITTEES, EACH BETTER ABLE TO MONITOR PERFORMANCE OF INDIVIDUAL FUNDS. o VOTED TO DOUBLE THE REQUIRED INVESTMENT BY EACH DIRECTOR IN THE COLUMBIA FUNDS -- TO FURTHER ALIGN THE INTERESTS OF THE DIRECTORS WITH THOSE OF OUR FUND SHAREHOLDERS. AT THE SAME TIME, NEW POLICIES WERE INSTITUTED REQUIRING ALL INVESTMENT PERSONNEL AND DIRECTORS TO HOLD THEIR COLUMBIA FUND SHARES FOR A MINIMUM OF ONE YEAR (UNLESS EXTRAORDINARY CIRCUMSTANCES WARRANT AN EXCEPTION TO BE GRANTED BY A BOARD DESIGNATED COMMITTEE). Both your fund's directors and Columbia Management are committed to serving the interests of our shareholders, and we will continue to work hard to help you achieve your financial goals. In the pages that follow, you'll find valuable information about the economic environment and the performance of 15 Columbia funds. The "Economic Update" provides an overview of the investing environment during the past six months. The individual fund reports feature commentary from fund managers, followed by financial statements for each fund. We hope that you will take time to read the reports of the funds you own and discuss them with your financial advisor if you have any questions. If you have any questions about your account, please feel free to call Columbia's shareholder services department at 800-345-6611. As always, thank you for choosing Columbia funds. It is a privilege to play a role in your financial future. Sincerely, /s/ Thomas C. Theobald /s/ J. Kevin Connaughton Thomas C. Theobald J. Kevin Connaughton Chairman, Board of Directors President, Columbia Funds J. Kevin Connaughton was named president of Columbia Funds on February 27, 2004. Sidebar: SUMMARY FOR THE SIX-MONTH PERIOD THAT ENDED FEBRUARY 29, 2004 o THE US STOCK MARKET BENEFITED FROM INVESTOR ENTHUSIASM AND AN INCREASE IN CORPORATE PROFITS. BOTH THE RUSSELL 3000 INDEX, WHICH TRACKS APPROXIMATELY 98% OF THE US STOCK MARKET, AND THE S&P 500 INDEX POSTED DOUBLE-DIGIT RETURNS THIS PERIOD. [Illustration of 2 arrows pointing up] S&P 500 RUSSELL 3000 INDEX INDEX 14.59% 15.06% O PERFORMANCE IN THE FIXED-INCOME UNIVERSE WAS LED BY HIGH-YIELD BONDS. AS MEASURED BY THE MERRILL LYNCH US HIGH YIELD, CASH PAY ONLY INDEX, THIS SECTOR POSTED A RETURN MORE THAN PERCENTAGE POINTS HIGHER THAN THE RETURN FOR INVESTMENT-GRADE BONDS, AS MEASURED BY THE LEHMAN BROTHERS AGGREGATE BOND INDEX. [Illustration of 2 arrows pointing up] MERRILL LYNCH LEHMAN INDEX INDEX 10.32% 4.92% The S&P 500 Index is an unmanaged index that tracks the performance of 500 widely held, large capitalization US stocks. The Russell 3000 Index is an unmanaged index that tracks the performance of the 3,000 largest US companies based on total market capitalizations. The Merrill Lynch US High Yield, Cash Pay Only Index is an unmanaged index that tracks the performance of non-investment-grade corporate bonds. The Lehman Brothers Aggregate Bond Index is a market value-weighted index that tracks fixed-rate, publicly placed, dollar-denominated, and non-convertible investment grade debt issues. ECONOMIC UPDATE_________________________________________________________________ COLUMBIA FUNDS The US economy grew rapidly in the six-month reporting period that began September 1, 2003 and ended February 29, 2004. A combination of factors accounted for the economy's stronger growth in the first half of this reporting period. A sizeable package of tax cuts, implemented in 2003, gave disposable income a boost. Federal income taxes fell across all tax brackets. Many taxpayers received tax rebate checks late last summer, which helped prop up consumer spending throughout this reporting period. There are warning signs for 2004, however. Early in 2004, consumer confidence slipped. Unemployment claims rose. Even the housing market, which has been hot for years, showed signs of weakness. The business sector contributed to the economy's growth as industrial production rose over the past six months. Business spending--especially on technology-related items--showed strength as corporate profits rose. However, orders for durable goods declined in January, interrupting five consecutive months of gains. Computer and electronic equipment orders rose, but transportation equipment orders fell sharply. US STOCKS HEADED HIGHER The US stock market gained ground, but its rate of return slowed in the final month of the period as disappointing economic data gave investors pause. The S&P 500 Index returned 14.59% for this six-month period as all sectors of the market benefited from rising corporate profits. Defensive sectors, such as energy, materials and consumer staples were the strongest performers, as investors started to hedge their bets on the economy. Technology, which led the stock market rally in its early stage last year, pulled back during the period. INTERNATIONAL STOCK MARKETS REPORTED STRONG RETURNS A rebound in economic growth and a declining US dollar helped international stock markets post returns that were generally stronger than in the United States. The MSCI EAFE Index, a broad measure of performance of 21 developed equity markets in Europe, Australasia (which includes Australia and New Zealand) and the Far East, returned 25.22%. European stock markets responded to improving economic data and relatively low interest rates. Japan's economy continued to report steady but modest growth. Yet its stock market cooled after a run-up in the six months prior to this reporting period. Although the Chinese economy cooled somewhat in 2003, its stock market soared. The MSCI China Index returned 43.07%. BONDS DELIVER RESPECTABLE GAINS A growing economy continued to boost investor enthusiasm for high-yield bonds. The Merrill Lynch US High Yield, Cash Pay Only Index returned 10.32%. And as interest rates moved lower, other segments of the bond market delivered respectable gains. The yield on the benchmark 10-year US Treasury bond edged downward from 4.46% to 3.97% during the period. The Lehman Brothers Aggregate Bond Index, a broad measure of investment-grade bond performance, returned 4.92%. However, money market fund yields remained below 1%, as the Fed kept short-term interest rates at their historical lows. 1 Sidebar: PERFORMANCE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04 ($) SALES CHARGE WITHOUT WITH ----------------------------------- Class A 24,071 22,680 ----------------------------------- Class B 23,804 23,804 ----------------------------------- Class C 23,804 23,804 ----------------------------------- Class D 23,792 23,549 ----------------------------------- Class Z 24,187 n/a Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares may be worth more or less than the original cost. Please visit www.columbiafunds.com for daily and most recent month-end performance updates. PERFORMANCE INFORMATION_________________________________________________________ COLUMBIA COMMON STOCK FUND VALUE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04 (MOUNTAIN CHART) CLASS A CLASS A SHARES SHARES WITHOUT WITH SALES S&P 500 SALES CHARGE CHARGE INDEX ------------ ---------- --------- 03/1994 9425.00 10000.00 10000.00 9066.00 9619.00 9564.00 9200.00 9761.00 9686.00 9377.00 9949.00 9845.00 9065.00 9618.00 9604.00 9427.00 10002.00 9919.00 9721.00 10314.00 10326.00 9482.00 10061.00 10073.00 9531.00 10113.00 10299.00 9297.00 9864.00 9925.00 9494.00 10073.00 10071.00 9576.00 10160.00 10332.00 9970.00 10578.00 10735.00 10177.00 10797.00 11052.00 10290.00 10917.00 11377.00 10623.00 11271.00 11832.00 10780.00 11438.00 12106.00 11191.00 11874.00 12508.00 11292.00 11980.00 12540.00 11682.00 12395.00 13069.00 11518.00 12220.00 13022.00 12037.00 12771.00 13593.00 12421.00 13179.00 13856.00 12654.00 13427.00 14327.00 12848.00 13632.00 14460.00 13115.00 13915.00 14599.00 13296.00 14108.00 14813.00 13570.00 14398.00 15196.00 13657.00 14490.00 15253.00 13019.00 13814.00 14579.00 13549.00 14376.00 14887.00 14080.00 14939.00 15725.00 14127.00 14989.00 16159.00 15083.00 16003.00 17381.00 14991.00 15906.00 17036.00 15489.00 16434.00 18101.00 15636.00 16590.00 18242.00 15408.00 16348.00 17493.00 15838.00 16804.00 18537.00 16759.00 17782.00 19666.00 17446.00 18511.00 20547.00 18692.00 19833.00 22182.00 18144.00 19251.00 20940.00 18919.00 20073.00 22088.00 18204.00 19315.00 21350.00 18486.00 19614.00 22339.00 18793.00 19940.00 22723.00 18904.00 20057.00 22975.00 19970.00 21189.00 24631.00 20917.00 22193.00 25893.00 20934.00 22211.00 26154.00 20523.00 21775.00 25704.00 21738.00 23064.00 26748.00 21490.00 22801.00 26464.00 18297.00 19413.00 22638.00 19247.00 20421.00 24089.00 20413.00 21658.00 26047.00 21691.00 23014.00 27626.00 23732.00 25180.00 29217.00 24821.00 26335.00 30438.00 24198.00 25674.00 29491.00 25473.00 27027.00 30671.00 25873.00 27452.00 31858.00 25182.00 26719.00 31106.00 26993.00 28640.00 32833.00 26164.00 27761.00 31808.00 25688.00 27255.00 31652.00 25210.00 26748.00 30785.00 26710.00 28340.00 32734.00 27664.00 29352.00 33398.00 29847.00 31668.00 35365.00 28710.00 30461.00 33590.00 29867.00 31689.00 32955.00 32943.00 34953.00 36178.00 31912.00 33859.00 35089.00 30549.00 32413.00 34370.00 31924.00 33871.00 35219.00 31541.00 33465.00 34669.00 33493.00 35536.00 36822.00 30984.00 32875.00 34878.00 30002.00 31833.00 34732.00 27605.00 29289.00 31995.00 28138.00 29854.00 32152.00 28670.00 30419.00 33293.00 25559.00 27118.00 30257.00 23928.00 25388.00 28338.00 25790.00 27363.00 30540.00 25906.00 27486.00 30745.00 25201.00 26739.00 29998.00 24705.00 26212.00 29704.00 23017.00 24422.00 27844.00 20810.00 22080.00 25595.00 21203.00 22497.00 26083.00 22868.00 24263.00 28084.00 23188.00 24603.00 28331.00 22562.00 23938.00 27918.00 22097.00 23445.00 27379.00 22840.00 24233.00 28408.00 21307.00 22607.00 26687.00 21331.00 22632.00 26489.00 19729.00 20932.00 24603.00 17906.00 18998.00 22687.00 18092.00 19196.00 22834.00 16187.00 17174.00 20352.00 17522.00 18591.00 22143.00 18684.00 19824.00 23447.00 17399.00 18460.00 22071.00 17002.00 18039.00 21493.00 16664.00 17680.00 21170.00 16757.00 17779.00 21375.00 18087.00 19191.00 23137.00 18916.00 20070.00 24356.00 19114.00 20280.00 24668.00 19476.00 20664.00 25102.00 20095.00 21321.00 25592.00 19733.00 20937.00 25320.00 20854.00 22126.00 26753.00 21133.00 22423.00 26989.00 21985.00 23326.00 28403.00 22231.00 23588.00 28926.00 02/2004 22680.00 24071.00 29318.00 The above illustration assumes a $10,000 investment made on March 1,1994, and reinvestment of income and capital gains distributions. In addition, the graph and table do not reflect a deduction of the taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The Standard & Poor's (S&P) 500 Index tracks the performance of 500 large-capitalization US stocks. Unlike the fund, indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. AVERAGE ANNUAL TOTAL RETURN AS OF 02/29/04 (%)
SHARE CLASS A B C D Z - ---------------------------------------------------------------------------------------------------------------- INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 10/01/91 - ---------------------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ---------------------------------------------------------------------------------------------------------------- 6-month (cumulative) 12.90 6.40 12.44 7.44 12.44 11.44 12.45 10.33 13.09 - ---------------------------------------------------------------------------------------------------------------- 1-year 36.14 28.31 34.90 29.90 34.90 33.90 34.83 32.49 36.60 - ---------------------------------------------------------------------------------------------------------------- 5-year -1.29 -2.45 -1.51 -1.84 -1.51 -1.51 -1.52 -1.71 -1.19 - ---------------------------------------------------------------------------------------------------------------- 10-year 9.18 8.53 9.06 9.06 9.06 9.06 9.05 8.94 9.23
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/03 (%)
SHARE CLASS A B C D Z - ------------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ------------------------------------------------------------------------------------------------------- 6-month (cumulative) 15.02 8.40 14.53 9.53 14.59 13.59 14.53 12.40 15.27 - ------------------------------------------------------------------------------------------------------- 1-year 26.36 19.09 25.29 20.29 25.35 24.35 25.20 22.96 26.87 - ------------------------------------------------------------------------------------------------------- 5-year -1.52 -2.68 -1.72 -2.05 -1.71 -1.71 -1.72 -1.92 -1.43 - ------------------------------------------------------------------------------------------------------- 10-year 8.98 8.34 8.87 8.87 8.88 8.88 8.87 8.77 9.03
All results shown assume reinvestment of distributions. 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%, and thereafter - 0%. Class C has a CDSC of 1% which is applicable for the first year only. Class D has a sales charge of 1% and 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, the 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. The returns for class C include the returns of class B prior to 10/13/03, the date on which class C was initially offered by the fund. The returns shown for class C also include the performance of class Z prior to the inception of class B (11/01/02). 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, C, and D would have been lower. 2 Sidebar: SUMMARY o FOR THE SIX-MONTH PERIOD THAT ENDED FEBRUARY 29, 2004, THE FUND'S CLASS A SHARES RETURNED 12.90% WITHOUT SALES CHARGE. o THE FUND'S RETURN WAS LESS THAN THE S&P 500 INDEX BUT SLIGHTLY BETTER THAN THE AVERAGE OF THE LIPPER LARGE CAP CORE FUNDS CATEGORY. o STRONG STOCK SELECTION IN HEALTH CARE, CONSUMER STAPLES AND TECHNOLOGY SECTORS HELPED THE FUND'S PERFORMANCE. HOWEVER, HIGHER-THAN-INDEX EXPOSURE TO INDUSTRIAL STOCKS AND CONSUMER CYCLICALS DETRACTED SOMEWHAT FROM THE FUND'S RETURN. [Illustration of 2 arrows pointing up] CLASS A SHARES S&P 500 INDEX 12.90% 14.59% OBJECTIVE Seeks capital appreciation TOTAL NET ASSETS $415.6 million NET ASSET VALUE PER SHARE AS OF 02/29/04 ($) Class A 19.41 --------------------------- Class B 19.25 --------------------------- Class C 19.25 --------------------------- Class D 19.24 --------------------------- Class Z 19.41 DISTRIBUTIONS DECLARED PER SHARE 09/01/03 -- 02/29/04 ($) Class A 0.03 -------------------------- Class B 0.00 -------------------------- Class C 0.00 -------------------------- Class D 0.00 -------------------------- Class Z 0.10 PORTFOLIO MANAGERS' REPORT______________________________________________________ COLUMBIA COMMON STOCK FUND For the six-month period ended February 29, 2004, Columbia Common Stock Fund class A shares returned 12.90% without sales charge. This was less than the S&P 500 Index, which returned 14.59% over the same period. The fund's performance was slightly better than the average return of its peer group, the Lipper Large Cap Core Funds Category which gained 12.49%.1 The fund's above-average investment in industrials relative to the S&P 500 hurt performance when that sector lagged from late December through early February. The fund's above-index weight in consumer cyclical stocks also was a slight drag on performance. However, good stock selection in financials, consumer staples, technology and health care sectors helped overall returns. BULL MARKET STILL STRONG The stock market continued to rise during the period, powered by tax cuts, historically low interest rates and a global economic recovery. Rapid growth in China and India increased demand for industrial commodities, and the industrials sector rebounded early in the period. However, industrial and technology stocks began to lose steam late in the period. We viewed this as the beginning of a transition in investor sentiment, as signs of concern over how long the good times would last began to emerge. THE FUND WAS POSITIONED FOR A RECOVERING ECONOMY During the period the portfolio was positioned for a recovering economy, with higher allocations in economically-sensitive sectors such as industrials, information technology, basic materials and consumer cyclicals. Our decision to overweight these sectors relative to the S&P 500 Index produced mixed results. Our investments in basic materials stocks did well, while industrial and consumer cyclical stocks detracted from performance. Although industrial stocks 3M, Dover and General Electric all had positive returns for the period, they failed to keep pace with their industry peers and the S&P 500 Index. We significantly reduced our position in Dover during the period. In technology, where we focused on broadband, wireless information access and digital media, the fund benefited from good stock selection. Our positions in QUALCOMM and Broadcom both gained more than 45%, while Motorola rose 73% during the period. Motorola, the leading supplier of wireless infrastructure equipment and the number two manufacturer of wireless handsets, benefited from growth in cell phone usage in a variety of international markets. On the down side, Seagate Technology fared poorly when its earnings disappointed overly hopeful investors. 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. 3 Sidebar: TOP 5 SECTORS AS OF 02/29/04 (%) Information technology 20.8 ---------------------------------- Financials 19.6 ---------------------------------- Industrials 14.0 ---------------------------------- Consumer discretionary 11.2 ---------------------------------- Health Care 10.2 TOP 10 HOLDINGS AS OF 02/29/04 (%) Wal-mart Stores 4.2 ---------------------------------- Citigroup 3.8 ---------------------------------- General Electric 3.4 ---------------------------------- Pfizer 3.2 ---------------------------------- Microsoft 2.8 ---------------------------------- Dow Chemical 2.3 ---------------------------------- Exxon Mobil 2.3 ---------------------------------- American Express 1.9 ---------------------------------- American International Group 1.7 ---------------------------------- Bank One 1.7 HOLDINGS DISCUSSED IN THIS REPORT AS OF 02/29/04 (%) 3M 1.0 ---------------------------------- Dover 0.0 ---------------------------------- General Electric 3.4 ---------------------------------- QUALCOMM 0.8 ---------------------------------- Broadcom 0.5 ---------------------------------- Motorola 0.5 ---------------------------------- Seagate Technology 0.6 ---------------------------------- Citigroup 3.8 ---------------------------------- Bank One 1.7 ---------------------------------- American Express 1.9 ---------------------------------- Wal-Mart Stores 4.2 ---------------------------------- Altria Group 1.5 ---------------------------------- Shire Pharmaceuticals Group 0.5 Your fund is actively managed and the composition of its portfolio will change over time. Information provided is calculated as a percentage of net assets. ________________________________________________________________________________ COLUMBIA COMMON STOCK FUND We also missed out on strong gains from telecommunications and utilities sectors during the period. Although both have relatively small weights in the index, the sectors rebounded during the period as investors were willing to buy back into stocks that had been severely beaten down during the recent bear market. STOCK SELECTION IN DEFENSIVE SECTORS HELPED PERFORMANCE Although the fund was slightly underweight in financials relative to the index, strong stock selection in the sector helped performance. Our holdings in Citigroup, Bank One and American Express all gained ground as the economy picked up and interest rates remained low. Stock selection was also a plus in the consumer staples and health care sectors. Wal-Mart, our largest holding, and consumer staples giant Altria Group both delivered attractive returns. Shire Pharmaceuticals Group gained 33% as investors became more convinced of its growth prospects. PUTTING EXPECTATIONS IN PERSPECTIVE Looking ahead, we anticipate lower earnings growth rates in 2004, largely because 2003 was so strong. We believe that the economy has the potential to continue to expand, but future growth is likely to be somewhat slower, as we move from economic recovery to economic growth. We have some concerns about weak new job figures, but believe that other factors, such as low interest rates and growing global economic strength, should help market conditions remain favorable. We continue to position the portfolio for a positive economic environment, but may begin to shift our allocations to favor companies that would do well in a slower growing economy. Columbia Common Stock Fund is managed by a group of managers from Columbia's large cap core team: /s/ Scott J. Drysdale /s/ Ronald F. Gibbs Scott J. Drysdale Ronald F. Gibbs, CFA /s/ Trent E. Nevills /s/ Guy W. Pope Trent E. Nevills Guy W. Pope, CFA An investment in the fund may present certain risks, including stock market fluctuations that occur in response to economic and business developments. 4 Sidebar: PERFORMANCE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04 ($) SALES CHARGE WITHOUT WITH ------------------------------------ Class A 20,010 18,862 ------------------------------------ Class B 19,809 19,809 ------------------------------------ Class C 19,765 19,765 ------------------------------------ Class D 19,832 19,636 ------------------------------------ Class G 19,839 19,839 ------------------------------------ Class Z 20,107 n/a Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares may be worth more or less than the original cost. Please visit www.columbiafunds.com for daily and most recent month-end performance updates. PERFORMANCE INFORMATION ________________________________________________________ COLUMBIA GROWTH FUND VALUE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04 (MOUNTAIN CHART) CLASS A CLASS A RUSSELL SHARES SHARES 1000 WITHOUT WITH SALES S&P 500 GROWTH SALES CHARGE CHARGE INDEX INDEX ------------ ---------- --------- -------- 03/1994 9425.00 10000.00 10000.00 10000.00 8865.00 9406.00 9564.00 9517.00 8956.00 9502.00 9686.00 9561.00 8983.00 9531.00 9845.00 9706.00 8646.00 9173.00 9604.00 9419.00 9011.00 9561.00 9919.00 9741.00 9356.00 9926.00 10326.00 10283.00 9129.00 9686.00 10073.00 10145.00 9300.00 9867.00 10299.00 10383.00 8994.00 9543.00 9925.00 10050.00 9121.00 9677.00 10071.00 10219.00 9143.00 9700.00 10332.00 10437.00 9587.00 10172.00 10735.00 10875.00 9932.00 10538.00 11052.00 11192.00 10071.00 10685.00 11377.00 11437.00 10299.00 10927.00 11832.00 11835.00 10688.00 11340.00 12106.00 12292.00 11110.00 11788.00 12508.00 12803.00 11305.00 11994.00 12540.00 12818.00 11602.00 12310.00 13069.00 13408.00 11305.00 11995.00 13022.00 13418.00 12010.00 12743.00 13593.00 13940.00 12129.00 12869.00 13856.00 14019.00 12255.00 13003.00 14327.00 14487.00 12817.00 13599.00 14460.00 14753.00 12772.00 13551.00 14599.00 14772.00 13195.00 13999.00 14813.00 15160.00 13577.00 14405.00 15196.00 15689.00 13573.00 14401.00 15253.00 15711.00 12556.00 13322.00 14579.00 14791.00 12983.00 13775.00 14887.00 15172.00 13743.00 14581.00 15725.00 16277.00 13986.00 14839.00 16159.00 16374.00 14839.00 15745.00 17381.00 17604.00 14651.00 15545.00 17036.00 17259.00 15165.00 16090.00 18101.00 18469.00 15179.00 16105.00 18242.00 18343.00 14406.00 15285.00 17493.00 17351.00 15121.00 16043.00 18537.00 18503.00 16150.00 17136.00 19666.00 19839.00 16822.00 17849.00 20547.00 20633.00 18314.00 19432.00 22182.00 22457.00 17642.00 18719.00 20940.00 21143.00 18343.00 19462.00 22088.00 22183.00 17880.00 18971.00 21350.00 21362.00 18376.00 19497.00 22339.00 22270.00 18504.00 19633.00 22723.00 22520.00 19000.00 20159.00 22975.00 23193.00 20397.00 21641.00 24631.00 24937.00 21362.00 22665.00 25893.00 25932.00 21426.00 22733.00 26154.00 26290.00 20909.00 22185.00 25704.00 25543.00 22494.00 23867.00 26748.00 27107.00 22166.00 23518.00 26464.00 26928.00 18517.00 19647.00 22638.00 22886.00 19208.00 20380.00 24089.00 24643.00 20286.00 21523.00 26047.00 26625.00 21622.00 22942.00 27626.00 28651.00 24124.00 25596.00 29217.00 31235.00 25644.00 27208.00 30438.00 33069.00 24793.00 26305.00 29491.00 31557.00 26297.00 27902.00 30671.00 33221.00 26347.00 27955.00 31858.00 33264.00 25689.00 27256.00 31106.00 32243.00 27636.00 29322.00 32833.00 34500.00 26671.00 28299.00 31808.00 33402.00 25941.00 27523.00 31652.00 33947.00 25458.00 27011.00 30785.00 33234.00 26884.00 28524.00 32734.00 35743.00 28177.00 29896.00 33398.00 37673.00 30403.00 32258.00 35365.00 41591.00 29366.00 31158.00 33590.00 39641.00 31031.00 32924.00 32955.00 41579.00 34320.00 36414.00 36178.00 44556.00 32920.00 34929.00 35089.00 42435.00 30843.00 32725.00 34370.00 40297.00 33579.00 35627.00 35219.00 43351.00 33397.00 35435.00 34669.00 41543.00 36089.00 38291.00 36822.00 45303.00 32931.00 34940.00 34878.00 41017.00 30979.00 32869.00 34732.00 39077.00 27305.00 28970.00 31995.00 33317.00 27987.00 29695.00 32152.00 32264.00 29574.00 31378.00 33293.00 34494.00 24860.00 26377.00 30257.00 28637.00 22150.00 23502.00 28338.00 25521.00 24923.00 26444.00 30540.00 28750.00 24657.00 26161.00 30745.00 28327.00 24119.00 25591.00 29998.00 27670.00 23084.00 24493.00 29704.00 26978.00 21095.00 22382.00 27844.00 24771.00 18810.00 19958.00 25595.00 22299.00 19871.00 21083.00 26083.00 23470.00 21951.00 23291.00 28084.00 25725.00 21998.00 23340.00 28331.00 25676.00 21093.00 22380.00 27918.00 25222.00 19978.00 21196.00 27379.00 24175.00 20743.00 22008.00 28408.00 25012.00 19009.00 20168.00 26687.00 22971.00 18784.00 19930.00 26489.00 22415.00 16912.00 17943.00 24603.00 20341.00 15283.00 16215.00 22687.00 19223.00 15515.00 16462.00 22834.00 19280.00 13930.00 14779.00 20352.00 17281.00 15101.00 16022.00 22143.00 18866.00 15775.00 16737.00 23447.00 19890.00 14617.00 15508.00 22071.00 18516.00 14294.00 15166.00 21493.00 18066.00 14209.00 15076.00 21170.00 17983.00 14441.00 15322.00 21375.00 18317.00 15550.00 16499.00 23137.00 19671.00 16307.00 17302.00 24356.00 20652.00 16469.00 17473.00 24668.00 20937.00 16826.00 17853.00 25102.00 21459.00 17269.00 18322.00 25592.00 21993.00 16847.00 17875.00 25320.00 21758.00 17767.00 18851.00 26753.00 22980.00 17991.00 19089.00 26989.00 23222.00 18412.00 19535.00 28403.00 24025.00 18742.00 19885.00 28926.00 24515.00 02/2004 18862.00 20010.00 29318.00 24668.00 The above illustration assumes a $10,000 investment made on March 1, 1994, and reinvestment of income and capital gains distributions. In addition, the graph and table do not reflect a deduction of the taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The S&P 500 Index tracks the performance of 500 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 or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. AVERAGE ANNUAL TOTAL RETURN AS OF 02/29/04 (%)
SHARE CLASS A B C D G Z - ------------------------------------------------------------------------------------------------------------------- INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 11/01/02 6/16/67 - ------------------------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ------------------------------------------------------------------------------------------------------------------- 6-month (cumulative) 9.22 2.94 8.75 3.75 8.50 7.50 8.82 6.75 8.82 3.82 9.35 - ------------------------------------------------------------------------------------------------------------------- 1-year 32.74 25.11 31.67 26.67 31.37 30.37 31.82 29.51 31.87 26.87 33.25 - ------------------------------------------------------------------------------------------------------------------- 5-year -5.32 -6.44 -5.51 -5.82 -5.56 -5.56 -5.49 -5.68 -5.49 -5.95 -5.23 - ------------------------------------------------------------------------------------------------------------------- 10-year 7.18 6.55 7.07 7.07 7.05 7.05 7.09 6.98 7.09 7.09 7.23
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/03 (%)
SHARE CLASS A B C D G Z - -------------------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - -------------------------------------------------------------------------------------------------------------- 6-month (cumulative) 11.80 5.37 11.29 6.29 11.08 10.08 11.42 9.32 11.46 6.46 12.02 - -------------------------------------------------------------------------------------------------------------- 1-year 25.97 18.73 24.98 19.98 24.74 23.74 25.07 22.83 25.11 20.11 26.47 - -------------------------------------------------------------------------------------------------------------- 5-year -5.26 -6.37 -5.42 -5.73 -5.46 -5.46 -5.41 -5.60 -5.39 -5.85 -5.17 - -------------------------------------------------------------------------------------------------------------- 10-year 7.21 6.58 7.12 7.12 7.10 7.10 7.13 7.02 7.14 7.14 7.26
All results shown assume reinvestment of distributions. 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%, and thereafter - 0%. Class C has a CDSC of 1% which is applicable for the first year only. Class D has a sales charge of 1% and 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, the 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. The returns for class C include the returns of class B prior to 10/13/03, the date on which class C was initially offered by the fund. The returns shown for class C also include the performance of class Z prior to the inception of class B (11/01/02). 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, C, D and G would have been lower. 5 Sidebar: SUMMARY o FOR THE SIX-MONTH PERIOD THAT ENDED FEBRUARY 29, 2004, THE FUND'S CLASS A SHARES RETURNED 9.22% WITHOUT SALES CHARGE. o THE FUND TRAILED THE RUSSELL 1000 GROWTH AND S&P 500 INDICES, AS WELL AS THE LIPPER LARGE CAP GROWTH FUNDS CATEGORY AVERAGE. o WEAK STOCK SELECTION IN THE TECHNOLOGY SECTOR AS WELL AS LACKLUSTER RETURNS FROM MEDIA STOCKS DETRACTED FROM RELATIVE PERFORMANCE. [Illustration of 2 arrows pointing up] RUSSELL 1000 CLASS A SHARES GROWTH INDEX 9.22% 12.17% OBJECTIVE Seeks capital appreciation TOTAL NET ASSETS $960.2 million NET ASSET VALUE PER SHARE AS OF 02/29/04 ($) Class A 26.88 --------------------------- Class B 26.61 --------------------------- Class C 26.55 --------------------------- Class D 26.64 --------------------------- Class G 26.65 --------------------------- Class Z 27.01 DISTRIBUTIONS DECLARED PER SHARE 09/01/03 - 02/29/04 ($) Class A 0.00 --------------------------- Class B 0.00 --------------------------- Class C 0.00 --------------------------- Class D 0.00 --------------------------- Class G 0.00 --------------------------- Class Z 0.00 PORTFOLIO MANAGERS' REPORT______________________________________________________ COLUMBIA GROWTH FUND For the six-month period ended February 29, 2004, Columbia Growth Fund's class A shares returned 9.22% without sales charge. The fund came out behind the Russell 1000 Growth Index and S&P 500 Index, which returned 12.17% and 14.59%, respectively, over the same period. The fund also trailed the Lipper Large Cap Growth Funds Category average, which returned 9.91%.1 Stock selection in the technology sector and lackluster returns from media holdings hurt the fund's return relative to its benchmarks, and we believe the same factors hurt the fund's return relative to its peer group. CYCLICAL BIAS IN AN IMPROVING ECONOMY Throughout the period, we favored cyclical stocks--particularly technology, industrial and media names--which we believed would benefit from a strengthening economy. Across sectors, we targeted large companies with strong competitive positions, high and sustainable profits, good balance sheets and above-average sales growth. As the stock market rallied, these high quality large company stocks did well, but they trailed smaller company issues with less dependable earnings. STRONG GAINS FROM HEALTH CARE, INDUSTRIALS Health care, industrials and materials stocks were among the fund's best performers. Within health care, our focus on medical device companies paid off. St. Jude Medical, which makes cardiac rhythm management products, and Boston Scientific, which makes drug-coated stents, both posted robust gains. Another standout was Caremark Rx, a pharmacy benefits manager, that began to reap benefits from a recently announced merger. The fund sustained losses from its investment in Gilead Sciences, a biotechnology company with short-term inventory issues, and Biovail, a generic drug company, which we sold after accounting problems surfaced. Industrials and materials stocks benefited from increased demand and higher commodity prices. We boosted the fund's stake, targeting global companies positioned to take advantage of exploding growth in countries such as China. New purchases included 3M, Alcoa and Praxair, an industrial gas company. Among the top gainers were Tyco International, which rebounded under new management, and Alcoa, which rallied amid rising demand and tight bauxite supplies. Bauxite is the principal ore used in manufacturing aluminum. DISAPPOINTING TECHNOLOGY AND MEDIA RETURNS Corporations continued to limit discretionary spending, which hindered technology and media sales. In technology, we focused on themes such as the spread of broadband and WiFi (the wireless Internet), the growing 1 Lipper Inc., a widely respected data provider in the industry, calculates an average total return for mutual funds with similar investment objectives as the fund. 6 Sidebar: TOP 5 SECTORS AS OF 02/29/04 (%) Information technology 31.7 ---------------------------------- Health care 19.7 ---------------------------------- Consumer discretionary 15.1 ---------------------------------- Industrials 12.8 ---------------------------------- Consumer staples 9.8 TOP 10 HOLDINGS AS OF 02/29/04 (%) General Electric 6.4 ---------------------------------- Pfizer 4.9 ---------------------------------- Intel 4.1 ---------------------------------- Microsoft 3.8 ---------------------------------- Cisco Systems 3.5 ---------------------------------- Wal-mart Stores 2.6 ---------------------------------- Amgen 2.5 ---------------------------------- Teva Pharmaceutical Industries 2.4 ---------------------------------- Caremark Rx 2.0 ---------------------------------- Viacom 2.0 HOLDINGS DISCUSSED IN THIS REPORT AS OF 02/29/04 (%) St. Jude Medical 1.3 ---------------------------------- Boston Scientific 1.5 ---------------------------------- Caremark Rx 2.0 ---------------------------------- Gilead Sciences 1.3 ---------------------------------- 3M 1.3 ---------------------------------- Alcoa 1.6 ---------------------------------- Praxair 1.5 ---------------------------------- Tyco International 1.7 ---------------------------------- Cisco Systems 3.5 ---------------------------------- QUALCOMM 1.8 ---------------------------------- QLogic 0.4 ---------------------------------- Paychex 0.9 ---------------------------------- Viacom 2.0 Your fund is actively managed and the composition of its portfolio will change over time. Information provided is calculated as a percentage of net assets. ________________________________________________________________________________ COLUMBIA GROWTH FUND popularity of notebook computers, advances in computer graphics, increased spending on data networking and growing cell phone handset sales. Both Cisco Systems, a leader in data networking, and QUALCOMM, which makes semiconductors for cell phones, rallied nicely. However, QLogic and Seagate Technology, which supply parts, peripherals and other components to technology systems companies, declined amid earnings shortfalls. We reduced our stake in QLogic and sold Seagate. Our investment in Paychex, a company that provides payroll and processing services for small businesses, was a disappointment. The stock suffered as job growth remained weak. Media stocks such as Liberty Media (no longer in the portfolio) and Viacom faltered as advertising spending failed to pick up as quickly as we expected in a strengthening economy. Nevertheless, media stocks started to turn around late in the period. We remain optimistic that the industry will benefit as year-over-year earnings comparisons improve and the summer Olympics and Presidential election bolster ad spending. FAVORABLE OUTLOOK FOR LARGE-CAP STOCKS As the US economic expansion moves into its later stages, we expect large company and higher quality stocks to lead the market. Most large companies have global businesses that can benefit from continued strong economic growth in countries such as China and India. As the rate of US economic growth slows, we plan to shift the portfolio's bias away from cyclical stocks and toward stocks with less economic sensitivity and records of more consistent earnings growth. Alexander S. Macmillan, CFA, has managed or co-managed Columbia Growth Fund since 1992 and has been with the advisor and its predecessors since 1989. /s/ Alexander S. Macmillan Paul J. Berlinquet has co-managed the fund since October 2003 and has been with the advisor and its predecessors since 2003. /s/ Paul J. Berlinquet 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 invest 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. The fund's approach offers the potential for long-term growth, but also involves the possibility of losses due to the sensitivity of growth stock prices to changes in current or expected earnings. 7 Sidebar: PERFORMANCE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04 ($) SALES CHARGE WITHOUT WITH ----------------------------------- Class A 16,456 15,515 ----------------------------------- Class B 16,228 16,228 ----------------------------------- Class C 16,276 16,276 ----------------------------------- Class D 16,336 16,169 ----------------------------------- Class Z 16,595 n/a Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares may be worth more or less than the original cost. Please visit www.columbiafunds.com for daily and most recent month-end performance updates. PERFORMANCE INFORMATION_________________________________________________________ COLUMBIA INTERNATIONAL STOCK FUND VALUE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04 (MOUNTAIN CHART) CLASS A SHARES WITHOUT CLASS A MSCI ALL SALES SHARES WITH COUNTRY WORLD MSCI EAFE CHARGE SALES CHARGE EX US INDEX INDEX -------- ------------- ------------- --------- 03/1994 10000.00 9425.00 10000.00 10000.00 9549.00 9000.00 9542.00 9569.00 9800.00 9237.00 9865.00 9975.00 9711.00 9153.00 9868.00 9918.00 9756.00 9195.00 9938.00 10058.00 9793.00 9230.00 10100.00 10154.00 10082.00 9502.00 10440.00 10395.00 9742.00 9182.00 10181.00 10067.00 10045.00 9467.00 10455.00 10403.00 9527.00 8980.00 9951.00 9902.00 9350.00 8813.00 9928.00 9965.00 8636.00 8139.00 9477.00 9582.00 8486.00 7998.00 9426.00 9554.00 8809.00 8302.00 9959.00 10150.00 9005.00 8487.00 10347.00 10532.00 8899.00 8387.00 10301.00 10407.00 8862.00 8352.00 10158.00 10225.00 9448.00 8905.00 10734.00 10862.00 9291.00 8756.00 10362.00 10448.00 9516.00 8969.00 10539.00 10652.00 9411.00 8870.00 10258.00 10365.00 9599.00 9047.00 10499.00 10653.00 9832.00 9267.00 10914.00 11083.00 9960.00 9387.00 11064.00 11128.00 9960.00 9387.00 11064.00 11166.00 10329.00 9735.00 11271.00 11403.00 10720.00 10104.00 11612.00 11734.00 10893.00 10266.00 11438.00 11518.00 11089.00 10451.00 11497.00 11583.00 10517.00 9912.00 11115.00 11245.00 10682.00 10067.00 11180.00 11269.00 10953.00 10323.00 11458.00 11569.00 10893.00 10266.00 11343.00 11451.00 11314.00 10664.00 11781.00 11907.00 11464.00 10804.00 11644.00 11753.00 11456.00 10797.00 11430.00 11342.00 11779.00 11101.00 11639.00 11528.00 11894.00 11210.00 11615.00 11570.00 12175.00 11475.00 11714.00 11631.00 12877.00 12137.00 12436.00 12388.00 13489.00 12713.00 13123.00 13071.00 13894.00 13095.00 13388.00 13282.00 12818.00 12081.00 12334.00 12290.00 13695.00 12908.00 13001.00 12978.00 12745.00 12012.00 11894.00 11980.00 12687.00 11958.00 11745.00 11858.00 12779.00 12044.00 11880.00 11961.00 12881.00 12140.00 12235.00 12508.00 13404.00 12633.00 13051.00 13311.00 13861.00 13064.00 13503.00 13721.00 14206.00 13389.00 13600.00 13829.00 14402.00 13574.00 13353.00 13762.00 14448.00 13617.00 13303.00 13866.00 14532.00 13696.00 13430.00 14006.00 12554.00 11832.00 11536.00 12271.00 11892.00 11209.00 11293.00 11894.00 12853.00 12114.00 12476.00 13133.00 13749.00 12959.00 13146.00 13806.00 14419.00 13590.00 13598.00 14350.00 14857.00 14003.00 13583.00 14307.00 14493.00 13660.00 13279.00 13966.00 14867.00 14012.00 13921.00 14549.00 15325.00 14444.00 14617.00 15138.00 14784.00 13934.00 13930.00 14358.00 15540.00 14646.00 14570.00 14918.00 16174.00 15244.00 14911.00 15361.00 16528.00 15577.00 14963.00 15418.00 16873.00 15903.00 15064.00 15574.00 17788.00 16765.00 15624.00 16158.00 20027.00 18876.00 16249.00 16719.00 22771.00 21462.00 17799.00 18220.00 21682.00 20436.00 16833.00 17063.00 23120.00 21791.00 17287.00 17522.00 22741.00 21433.00 17937.00 18202.00 20853.00 19654.00 16936.00 17244.00 19237.00 18131.00 16503.00 16824.00 20036.00 18883.00 17206.00 17481.00 19118.00 18019.00 16526.00 16749.00 19697.00 18565.00 16731.00 16895.00 18480.00 17417.00 15802.00 16072.00 17652.00 16637.00 15300.00 15693.00 16854.00 15885.00 14615.00 15104.00 17618.00 16605.00 15113.00 15640.00 17522.00 16515.00 15340.00 15633.00 16580.00 15626.00 14125.00 14460.00 15434.00 14547.00 13126.00 13496.00 16388.00 15446.00 14019.00 14434.00 16137.00 15209.00 13632.00 13924.00 15613.00 14715.00 13110.00 13355.00 15101.00 14232.00 12817.00 13112.00 14814.00 13962.00 12499.00 12780.00 13347.00 12580.00 11173.00 11485.00 13717.00 12928.00 11486.00 11779.00 14039.00 13232.00 12011.00 12214.00 14364.00 13538.00 12166.00 12286.00 13730.00 12941.00 11645.00 14468.00 13826.00 13031.00 11729.00 11715.00 14471.00 13638.00 12352.00 12405.00 14543.00 13707.00 12447.00 12429.00 14687.00 13842.00 12583.00 12587.00 14293.00 13471.00 12039.00 12086.00 13064.00 12313.00 10865.00 10893.00 12945.00 12201.00 10866.00 10868.00 11620.00 10951.00 9715.00 9701.00 12041.00 11349.00 10235.00 10222.00 12425.00 11711.00 10728.00 10686.00 12054.00 11361.00 10382.00 10327.00 11514.00 10852.00 10018.00 9896.00 11346.00 10693.00 9814.00 9670.00 11262.00 10614.00 9624.00 9480.00 12041.00 11349.00 10552.00 10409.00 12701.00 11971.00 11224.00 11040.00 12928.00 12185.00 11535.00 11307.00 13276.00 12513.00 11842.00 11581.00 13600.00 12818.00 12194.00 11860.00 13971.00 13168.00 12536.00 12225.00 14799.00 13948.00 13348.00 12987.00 14942.00 14083.00 13639.00 13275.00 15937.00 15021.00 14680.00 14312.00 16261.00 15326.00 14916.00 14514.00 02/2004 16456.00 15515.00 15297.00 14852.00 The above illustration assumes a $10,000 investment made on March 1, 1994, and reinvestment of income and capital gains distributions. In addition, the graph and table do not reflect a deduction of the taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The Morgan Stanley Capital International (MSCI) All Country (AC) World 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 unmanaged, 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 or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. AVERAGE ANNUAL TOTAL RETURN AS OF 02/29/04 (%)
SHARE CLASS A B C D Z - ------------------------------------------------------------------------------------------------------------ INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 10/01/92 - ------------------------------------------------------------------------------------------------------------ SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ------------------------------------------------------------------------------------------------------------ 6-month (cumulative) 21.08 14.11 20.57 15.57 20.93 19.93 20.94 18.78 21.46 - ------------------------------------------------------------------------------------------------------------ 1-year 45.14 36.79 43.89 38.89 44.31 43.31 44.69 42.18 46.21 - ------------------------------------------------------------------------------------------------------------ 5-year 2.58 1.37 2.29 1.97 2.35 2.35 2.43 2.22 2.75 - ------------------------------------------------------------------------------------------------------------ 10-year 5.11 4.49 4.96 4.96 4.99 4.99 5.03 4.92 5.20
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/03 (%)
SHARE CLASS A B C D Z - ------------------------------------------------------------------------------------------------------ SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ------------------------------------------------------------------------------------------------------ 6-month (cumulative) 23.28 16.20 22.71 17.71 22.80 21.80 22.93 20.69 23.50 - ------------------------------------------------------------------------------------------------------ 1-year 32.24 24.64 31.04 26.04 31.14 30.14 31.64 29.35 33.08 - ------------------------------------------------------------------------------------------------------ 5-year 2.02 0.82 1.77 1.45 1.79 1.79 1.86 1.65 2.15 - ------------------------------------------------------------------------------------------------------ 10-year 5.21 4.59 5.08 5.08 5.09 5.09 5.13 5.03 5.28
All results shown assume reinvestment of distributions. The "with sales charge" returns include the maximum 5.75% charge for class A shares and 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%, and thereafter - 0%. Class C has a CDSC of 1% which is applicable for the first year only. Class D has a sales charge of 1% and 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, the 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. The returns for class C include the returns of class B prior to 10/13/03, the date on which class C was initially offered by the fund. The returns shown for class C also include the performance of class Z prior to the inception of class B (11/01/02). 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, C and D would have been lower. 8 Sidebar: SUMMARY o FOR THE SIX-MONTH PERIOD THAT ENDED FEBRUARY 29, 2004, THE FUND'S CLASS A SHARES RETURNED 21.08% WITHOUT SALES CHARGE. o THE FUND'S RETURN WAS LESS THAN ITS BENCHMARK, THE MSCI AC WORLD EX US INDEX. o THE FUND'S PERFORMANCE WAS HINDERED BY A RELATIVELY SMALL COMMITMENT TO GERMAN SECURITIES, WHICH WERE STRONG PERFORMERS DURING THE PERIOD. [Illustration of 2 arrows pointing up] MSCI AC WORLD CLASS A SHARES EX US INDEX 21.08% 25.41% OBJECTIVE Seeks long-term capital appreciation TOTAL NET ASSETS $542.9 million NET ASSET VALUE PER SHARE AS OF 02/29/04 ($) Class A 13.73 --------------------------- Class B 13.54 --------------------------- Class C 13.58 --------------------------- Class D 13.63 --------------------------- Class Z 13.80 DISTRIBUTIONS DECLARED PER SHARE 09/01/03 - 02/29/04 ($) Class A 0.00 -------------------------- Class B 0.00 -------------------------- Class C 0.00 -------------------------- Class D 0.00 -------------------------- Class Z 0.04 PORTFOLIO MANAGER'S REPORT______________________________________________________ COLUMBIA INTERNATIONAL STOCK FUND For the six-month period ended February 29, 2004, Columbia International Stock Fund class A shares returned 21.08% without sales charge. The fund's return was strong as prospects for improved global economic growth drove international stock markets higher over the six-month reporting period. However, the fund trailed the MSCI AC World ex US Index, which returned 25.41% during the same period. The portfolio underperformed its benchmark principally because of a relatively small commitment to German securities. GERMAN STOCKS REBOUNDED We limited our investment in German stocks because the prospects for the German market appeared unattractive at the beginning of the period and indeed, the German stock market had performed poorly prior to this reporting period in the first half of 2003. However, German stocks rebounded strongly in the second half of 2003 in response to government changes in financial policy, and the fund did not fully participate in the gains. We subsequently added to our German holdings after research visits to Europe provided a more positive view of the country's investment and economic environment. We invested in Allianz AG, a German insurance company, which aided the fund's return. AN IMPROVED INVESTMENT ENVIRONMENT The portfolio benefited from investments in the materials, energy and industrials sectors, all of which responded positively to an improving economy. As the dollar fell, returns to US investors got an additional boost because the value of securities purchased in local currencies rose when converted to US dollars. The dollar was particularly weak against the Japanese yen and the euro, which gained 7% and 14% against the dollar, respectively, during the period. EXPOSURE TO JAPAN AND THAILAND MAINTAINED, CHINA REDUCED We maintained relatively large weights in Thailand and Japan, a strategy that generally benefited the fund's return. In Thailand, which was the strongest performing market held by the fund during the period, we favored stocks with the potential to benefit from the country's infrastructure development, such as Siam Cement and Land and Houses. Both positions gained ground during the period. In Japan, which was the portfolio's largest country weight, we added UFJ Holdings, a large bank, to the portfolio and added to our position in Millea Holdings, an insurance company, after they reacted positively to changes in government policies regarding financial institutions. Both stocks were strong performers for the portfolio, although Japanese stocks generally lagged other world markets in the last months of the period. 9 Sidebar: TOP 5 COUNTRIES AS OF 02/29/04 (%) Japan 21.7 -------------------------------------- United Kingdom 21.6 -------------------------------------- Germany 8.6 -------------------------------------- France 6.4 -------------------------------------- Netherlands 4.8 TOP 10 HOLDINGS AS OF 02/29/04 (%) BP PLC, ADR 2.2 -------------------------------------- Eni S.p.A. 2.2 -------------------------------------- Siemens AG 1.9 -------------------------------------- Credit Suisse Group 1.8 -------------------------------------- Samsung Electronics 1.8 -------------------------------------- Allianz AG 1.7 -------------------------------------- Matsushita Electronic Industrial 1.6 -------------------------------------- Ing Groep NV 1.6 -------------------------------------- Smith & Nephew PLC 1.6 -------------------------------------- Reckitt Benckiser PLC 1.6 HOLDINGS DISCUSSED IN THIS REPORT AS OF 02/29/04 (%) Allianz AG 1.7 -------------------------------------- Siam Cement 1.3 -------------------------------------- Land and Houses 0.5 -------------------------------------- UFJ Holdings 0.8 -------------------------------------- Millea Holdings 1.4 Your fund is actively managed and the composition of its portfolio will change over time. Information provided is calculated as a percentage of net assets. ________________________________________________________________________________ COLUMBIA INTERNATIONAL STOCK FUND Near the end of the period, we reduced our exposure to China and other emerging markets in Asia because valuations were high. While we continue to believe in China's prospects, we became concerned about the country's ability to sustain its recent strong economic growth. We believe that the emergence of a property construction bubble, structural weakness in the banking system and rapidly developing shortages in electric power capacity could cause Chinese authorities to slow the country's extraordinary growth. POSITIVE OUTLOOK FOR EUROPEAN AND JAPANESE COMPANIES We have positioned the portfolio to take advantage of the trend toward restructuring among European companies and the attractive valuations and earnings forecasts offered by Japanese companies. Although we reduced the fund's overall exposure to emerging markets, we made modest new investments in the emerging markets of Eastern Europe. We believe that these markets have the potential to perform well as they become more integrated with Western Europe. We will continue to monitor emerging markets and take advantage of investment opportunities as they arise. Photo of: James M. McAlear James M. McAlear has managed the Columbia International Stock Fund since its inception. /s/ James M. McAlear An investment in the fund offers the potential for long-term growth, but also involves certain risks, including stock market fluctuations due to economic and business developments. There are also specific risks involved when investing in foreign stocks, such as currency exchange rate fluctuations, economic change, instability of emerging countries and political developments. 10 Sidebar: PERFORMANCE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04 ($) SALES CHARGE WITHOUT WITH ----------------------------------- Class A 23,038 21,716 ----------------------------------- Class B 22,814 22,814 ----------------------------------- Class C 22,849 22,849 ----------------------------------- Class D 22,826 22,593 ----------------------------------- Class G 22,778 22,778 ----------------------------------- Class T 23,097 21,772 ----------------------------------- Class Z 23,203 n/a Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares may be worth more or less than the original cost. Please visit www.columbiafunds.com for daily and most recent month-end performance updates. PERFORMANCE INFORMATION ________________________________________________________ COLUMBIA MID CAP GROWTH FUND VALUE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04 (MOUNTAIN CHART) CLASS A SHARES CLASS A RUSSELL WITHOUT SHARES WITH MIDCAP RUSSELL SALES CHARGE SALES CHARGE GROWTH INDEX MIDCAP INDEX ------------ ------------ ------------ ------------ 03/1994 9425.00 10000.00 10000.00 10000.00 9064.00 9617.00 9529.00 9574.00 9119.00 9676.00 9506.00 9640.00 9027.00 9578.00 9520.00 9654.00 8708.00 9239.00 9111.00 9368.00 8870.00 9411.00 9363.00 9689.00 9258.00 9823.00 9921.00 10148.00 9235.00 9798.00 9758.00 9901.00 9471.00 10049.00 9927.00 9976.00 9059.00 9612.00 9489.00 9536.00 9233.00 9797.00 9622.00 9660.00 9139.00 9697.00 9737.00 9858.00 9455.00 10032.00 10255.00 10369.00 9707.00 10299.00 10662.00 10665.00 9737.00 10331.00 10752.00 10826.00 9851.00 10452.00 11016.00 11182.00 10478.00 11118.00 11518.00 11558.00 11274.00 11961.00 12242.00 12120.00 11462.00 12161.00 12377.00 12305.00 11644.00 12355.00 12653.00 12583.00 11160.00 11841.00 12333.00 12302.00 11762.00 12480.00 12884.00 12913.00 11959.00 12688.00 12890.00 12988.00 11869.00 12593.00 13118.00 13262.00 12399.00 13155.00 13614.00 13574.00 12700.00 13475.00 13722.00 13770.00 13810.00 14652.00 14385.00 14160.00 14201.00 15067.00 14678.00 14374.00 13387.00 14204.00 14235.00 14158.00 12076.00 12813.00 13130.00 13282.00 12813.00 13595.00 13840.00 13914.00 13309.00 14121.00 14719.00 14602.00 12935.00 13724.00 14547.00 14718.00 13654.00 14487.00 15404.00 15615.00 13522.00 14347.00 15145.00 15455.00 13842.00 14687.00 15815.00 16033.00 13625.00 14456.00 15467.00 16009.00 12964.00 13755.00 14593.00 15329.00 12868.00 13653.00 14950.00 15711.00 14074.00 14932.00 16290.00 16858.00 14530.00 15416.00 16741.00 17409.00 15348.00 16284.00 18343.00 18861.00 15300.00 16234.00 18163.00 18655.00 16042.00 17021.00 19083.00 19720.00 15109.00 16030.00 18127.00 18953.00 15266.00 16197.00 18317.00 19404.00 15232.00 16161.00 18557.00 19940.00 14825.00 15730.00 18223.00 19565.00 15773.00 16735.00 19936.00 21095.00 16773.00 17796.00 20771.00 22095.00 16721.00 17741.00 21053.00 22150.00 16284.00 17278.00 20188.00 21466.00 16548.00 17558.00 20760.00 21764.00 15420.00 16360.00 19871.00 20726.00 13487.00 14310.00 16078.00 17410.00 14428.00 15308.00 17293.00 18536.00 15029.00 15946.00 18566.00 19800.00 15721.00 16680.00 19819.00 20737.00 17767.00 18851.00 21872.00 21952.00 17407.00 18469.00 22528.00 21915.00 15971.00 16945.00 21427.00 21185.00 16423.00 17424.00 22620.00 21848.00 16956.00 17991.00 23652.00 23463.00 17002.00 18039.00 23347.00 23395.00 18191.00 19300.00 24976.00 24220.00 17716.00 18797.00 24182.00 23554.00 17384.00 18445.00 23931.00 22944.00 17624.00 18700.00 23727.00 22137.00 18685.00 19825.00 25561.00 23186.00 20995.00 22276.00 28209.00 23854.00 24222.00 25700.00 33095.00 25953.00 24634.00 26136.00 33089.00 25094.00 31659.00 33591.00 40044.00 27024.00 31149.00 33050.00 40084.00 28572.00 28106.00 29821.00 36192.00 27221.00 26569.00 28190.00 33553.00 26499.00 29515.00 31316.00 37113.00 27284.00 28349.00 30079.00 34764.00 26978.00 32315.00 34287.00 40007.00 29562.00 31637.00 33567.00 38050.00 29140.00 29429.00 31224.00 35448.00 28691.00 25164.00 26700.00 27745.00 26109.00 27578.00 29260.00 29207.00 28096.00 27100.00 28754.00 30875.00 28548.00 24054.00 25522.00 25533.00 26809.00 21986.00 23327.00 21880.00 25147.00 24088.00 25557.00 25527.00 27297.00 23695.00 25140.00 25407.00 27805.00 23259.00 24678.00 25420.00 27544.00 22410.00 23777.00 23706.00 26756.00 21137.00 22427.00 21988.00 25726.00 18749.00 19892.00 18353.00 22623.00 19427.00 20613.00 20282.00 23519.00 21018.00 22301.00 22466.00 25490.00 21790.00 23119.00 23320.00 26515.00 21055.00 22340.00 22562.00 26356.00 20110.00 21337.00 21283.00 26076.00 21299.00 22598.00 22907.00 27641.00 20753.00 22019.00 21695.00 27105.00 20419.00 21665.00 21049.00 26798.00 19008.00 20168.00 18725.00 25003.00 17552.00 18623.00 16905.00 22563.00 17141.00 18187.00 16846.00 22687.00 16386.00 17385.00 15508.00 20593.00 16841.00 17868.00 16710.00 21633.00 17319.00 18376.00 18018.00 23134.00 16419.00 17420.00 16930.00 22222.00 16419.00 17420.00 16764.00 21774.00 16041.00 17020.00 16618.00 21486.00 16141.00 17125.00 16927.00 21699.00 16952.00 17987.00 18080.00 23274.00 18409.00 19532.00 19819.00 25404.00 18709.00 19850.00 20103.00 25660.00 19109.00 20275.00 20820.00 26507.00 20110.00 21337.00 21968.00 27658.00 19032.00 20194.00 21541.00 27312.00 20566.00 21821.00 23278.00 29396.00 21134.00 22423.00 23902.00 30222.00 21322.00 22623.00 24162.00 31128.00 21779.00 23107.00 24959.00 32034.00 02/2004 21716.00 23038.00 25373.00 32718.00 The above illustration assumes a $10,000 investment made on March 1, 1994, and reinvestment of income and capital gains distributions. In addition, the graph and table do not reflect a deduction of the taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The Russell MidCap Index is an unmanaged index that measures the performance of the 800 smallest companies in the Russell 1000 Index, as ranked by total market capitalization. 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 or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. AVERAGE ANNUAL TOTAL RETURN AS OF 02/29/04 (%)
SHARE CLASS A B C D G T Z - ---------------------------------------------------------------------------------------------------------------------------- INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 11/01/02 11/01/02 11/20/85 - ---------------------------------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ---------------------------------------------------------------------------------------------------------------------------- 6-month (cumulative) 7.96 1.75 7.56 2.56 7.73 6.73 7.62 5.55 7.40 2.40 8.06 1.82 8.26 - ---------------------------------------------------------------------------------------------------------------------------- 1-year 35.34 27.56 34.31 29.31 34.51 33.51 34.37 32.04 34.00 29.00 35.50 27.72 36.03 - ---------------------------------------------------------------------------------------------------------------------------- 5-year 6.33 5.08 6.13 5.84 6.16 6.16 6.14 5.93 6.09 5.66 6.39 5.13 6.49 - ---------------------------------------------------------------------------------------------------------------------------- 10-year 8.70 8.06 8.60 8.60 8.61 8.61 8.60 8.49 8.58 8.58 8.73 8.09 8.78
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/03 (%)
SHARE CLASS A B C D G T Z - -------------------------------------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - -------------------------------------------------------------------------------------------------------------------------------- 6-month (cumulative) 13.96 7.41 13.48 8.48 13.60 12.60 13.55 11.43 13.43 8.43 14.00 7.43 14.21 - -------------------------------------------------------------------------------------------------------------------------------- 1-year 29.86 22.39 28.86 23.86 29.00 28.00 28.86 26.58 28.64 23.64 29.95 22.50 30.43 - -------------------------------------------------------------------------------------------------------------------------------- 5-year 3.71 2.49 3.54 3.26 3.56 3.56 3.54 3.33 3.52 3.10 3.76 2.54 3.83 - -------------------------------------------------------------------------------------------------------------------------------- 10-year 8.98 8.33 8.89 8.89 8.90 8.90 8.89 8.77 8.87 8.87 9.00 8.36 9.04
All results shown assume reinvestment of distributions. 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% and a CDSC of 1% that is applied to shares sold within the first year after they are purchased. Class C has a CDSC of 1% which is applicable for the first year only. 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. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. 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, the 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. The returns for class C include the returns of class B prior to 10/13/03, the date on which class C was initially offered by the fund. The returns shown for class C also include the performance of class Z prior to the inception of class B (11/01/02). 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, C, D, G and T would have been lower. 11 Sidebar: SUMMARY o FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 29, 2004, THE FUND'S CLASS A SHARES RETURNED 7.96% WITHOUT SALES CHARGE. o THE FUND UNDERPERFORMED ITS BENCHMARKS, THE RUSSELL MIDCAP GROWTH INDEX AND RUSSELL MIDCAP INDEX, AS WELL AS ITS PEER GROUP, THE LIPPER MIDCAP GROWTH FUNDS CATEGORY. o STOCK SELECTION IN HEALTH CARE AND AN EMPHASIS ON HIGHER QUALITY TECHNOLOGY STOCKS, WHICH UNDERPERFORMED MORE SPECULATIVE TECHNOLOGY ISSUES, WERE THE PRIMARY REASONS THE FUND LAGGED ITS BENCHMARKS. [Illustration of 3 arrows pointing up] RUSSELL RUSSELL CLASS A MIDCAP MIDCAP SHARES GROWTH INDEX INDEX 7.96% 15.52% 18.31% OBJECTIVE Seeks significant capital appreciation TOTAL NET ASSETS $1,070.3 million NET ASSET VALUE PER SHARE AS OF 02/29/04 ($) Class A 19.53 --------------------------- Class B 19.34 --------------------------- Class C 19.37 --------------------------- Class D 19.35 --------------------------- Class G 19.31 --------------------------- Class T 19.58 --------------------------- Class Z 19.67 PORTFOLIO MANAGER'S REPORT _____________________________________________________ COLUMBIA MID CAP GROWTH FUND For the six-month period ended February 29, 2004, Columbia Mid Cap Growth Fund class A shares returned 7.96% without sales charge. The fund underperformed both the Russell MidCap Growth Index, which returned 15.52%, and the Russell MidCap Index, which returned 18.31% during the same period. The fund also underperformed its peer group. The Lipper MidCap Growth Funds Category average was 11.75%. 1 Small-cap and mid-cap stocks rose more than large-cap stocks because investors believed smaller companies had more to gain in an improving economy. The fund was the beneficiary of this positive investor sentiment. However, it trailed its benchmark indices primarily because of stock selection in health care and because it focused on higher quality technology stocks, which underperformed more speculative technology issues. We believe these are also the principal reasons that the fund underperformed its peers. HEALTH CARE HOLDINGS DID POORLY The fund's health care stocks underperformed over the past six months. We eliminated our investment in Biovail, but not before a major earnings disappointment brought the stock price down sharply. Investors lost confidence in the stock after a truck accident destroyed a large shipment of one of the company's primary drug products and questions were raised about their accounting practices. The fund's performance was also hurt by its position in Gilead Sciences, which declined sharply during the period. The company was hurt by declining sales prospects for the biotech firm's flagship product, the anti-HIV drug Viread. Yet, several high-quality health care stocks made positive contributions to the fund, including DaVita, a dialysis services company; IVAX, a pharmaceuticals company; and Varian Medical Systems, a medical equipment company. INVESTORS ATTRACTED TO SPECULATIVE TECHNOLOGY NAMES Although the fund was overweight in technology, it did not participate in some of the strong gains by speculative technology companies because of its emphasis on high-quality technology companies with established earnings. Still, the fund's bottom-up research process did help us identify companies with above-average earnings growth and reasonable valuations, such as Fairchild Semiconductor International, Novell and AU Optronics. All three stocks made positive contributions to the fund's performance. We sold AU Optronics because it reached our price target. 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. 12 Sidebar: TOP 5 SECTORS AS OF 02/29/04 (%) Information technology 39.2 ----------------------------------------- Health care 20.4 ----------------------------------------- Consumer discretionary 17.5 ----------------------------------------- Industrials 10.6 ----------------------------------------- Energy 6.5 TOP 10 HOLDINGS AS OF 02/29/04 (%) Univision Communications 2.1 ----------------------------------------- Comverse Technology 1.9 ----------------------------------------- Microchip Technology 1.8 ----------------------------------------- Autoliv 1.7 ----------------------------------------- Caremark Rx 1.7 ----------------------------------------- Amphenol 1.7 ----------------------------------------- American Power Conversion 1.6 ----------------------------------------- Agilent Technologies 1.6 ----------------------------------------- Amdocs 1.6 ----------------------------------------- Fair Isaac 1.6 HOLDINGS DISCUSSED IN THIS REPORT AS OF 02/29/04 (%) Gilead Sciences 0.4 ----------------------------------------- DaVita 1.5 ----------------------------------------- IVAX 0.9 ----------------------------------------- Varian Medical Systems 1.2 ----------------------------------------- Fairchild Semiconductor International 1.2 ----------------------------------------- Novell 0.8 ----------------------------------------- XTO Energy 1.0 ----------------------------------------- National-Oilwell 1.2 Your fund is actively managed and the composition of its portfolio will change over time. Information provided is calculated as a percentage of net assets. ________________________________________________________________________________ COLUMBIA MID CAP GROWTH FUND ENERGY PRODUCERS AND SERVICE COMPANIES IN FAVOR The fund's above-average weight in energy investments slightly hurt performance, because the energy portion of the Russell MidCap Growth Index lagged the overall index return. However, energy made a positive contribution to the fund's performance relative to the index because we were invested in the types of companies that did the best within the sector--energy producers and energy service companies. Energy, in general, benefited as cold weather and global economic growth resulted in higher demand for oil and gas. But energy producers and service companies were the primary beneficiaries, as higher demand resulted in higher commodity prices and the expectation that drilling activity would be more attractive. These factors favored investments such as XTO Energy and National-Oilwell, which were strong performers for the fund. POSITIVE OUTLOOK FOR ECONOMY AND STOCK MARKET The fund's positioning at the end of the period reflects our outlook for sustained economic growth. We continue to believe that selected technology and energy companies have the potential to benefit from an improving economy. However, we also believe that investors are likely to seek strong revenue and earnings growth to justify higher stock prices after a year of strong returns, particularly from smaller company stocks. And although we believe that many companies have the potential to generate attractive revenue growth, it is unlikely to be enough to fuel another year of returns as high as 2003. As a result, we are seeking to reduce the overall risk exposure of the portfolio by focusing on companies with reasonable valuations as well as good growth prospects. Photo of Richard J. Johnson Richard J. Johnson, CFA, has managed Columbia Mid Cap Growth Fund since October 1998 and has been with the advisor and its predecessors since 1994. /s/ Richard J. Johnson An investment in the fund offers the potential for long-term growth, but also involves certain risks, including stock market fluctuations due to economic and business developments. Mid-cap stocks can present special risks including greater price volatility than stocks of larger, more established companies. 13 Sidebar: PERFORMANCE OF A $10,000 INVESTMENT 10/01/96 - 02/29/04 ($) SALES CHARGE WITHOUT ----------------------- Class Z $24,432 Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares may be worth more or less than the original cost. Please visit www.columbiafunds.com for daily and most recent month-end performance updates. PERFORMANCE INFORMATION ________________________________________________________ COLUMBIA SMALL CAP GROWTH FUND VALUE OF A $10,000 INVESTMENT 10/01/96 - 02/29/04 (MOUNTAIN CHART) CLASS Z SHARES WITHOUT RUSSELL 2000 RUSSELL 2000 SALES CHARGE INDEX GROWTH INDEX ------------ ----------- ------------ 10/1996 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 21273.00 15794.00 10958.00 20624.00 15502.00 10681.00 22670.00 16804.00 11604.00 23191.00 17400.00 11982.00 23142.00 17753.00 12036.00 24519.00 18524.00 12668.00 24432.00 18695.00 12652.00 23142.00 24519.00 02/2004 24432.00 The above illustration assumes a $10,000 investment made on October 1, 1996, and reinvestment of income and capital gains distributions. In addition, the graph and table do not reflect a deduction of the taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 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 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, 1996. AVERAGE ANNUAL TOTAL RETURN AS OF 02/29/04 (%) SHARE CLASS Z ----------------------------------- INCEPTION 10/01/96 ----------------------------------- SALES CHARGE WITHOUT ----------------------------------- 6-month (cumulative) 14.85 ----------------------------------- 1-year 55.19 ----------------------------------- 5-year 12.67 ----------------------------------- Life 12.81 AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/03 (%) SHARE CLASS Z ----------------------------------- SALES CHARGE WITHOUT ----------------------------------- 6-month (cumulative) 19.15 ----------------------------------- 1-Year 44.29 ----------------------------------- 5-Year 8.90 ----------------------------------- Life 12.27 All results shown assume reinvestment of distributions. 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. 14 SUMMARY o FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 29, 2004, THE FUND'S CLASS Z SHARES RETURNED 14.85% WITHOUT SALES CHARGE. o THE FUND'S RETURN LAGGED THAT OF ITS BENCHMARKS, THE RUSSELL 2000 GROWTH INDEX AND THE RUSSELL 2000 INDEX, BUT IT WAS HIGHER THAN THE RETURN OF ITS PEER GROUP, THE LIPPER SMALL-CAP GROWTH FUNDS CATEGORY. o THE FUND PROVIDED A STRONG ABSOLUTE RETURN FOR THE PERIOD, BUT ITS PERFORMANCE FELL SHORT OF ITS BENCHMARKS PRIMARILY BECAUSE THE MANAGER EMPHASIZED COMPANIES WITH CURRENT EARNINGS WHILE THE BEST PERFORMANCE DURING THE PERIOD WAS GENERATED BY MORE SPECULATIVE COMPANIES. [Illustration of 3 arrows pointing up] RUSSELL 2000 CLASS Z GROWTH RUSSELL 2000 SHARES INDEX INDEX 14.85% 15.42% 18.34% OBJECTIVE Seeks capital appreciation TOTAL NET ASSETS $784.0 million NET ASSET VALUE PER SHARE AS OF 02/29/04 ($) Class Z 24.83 PORTFOLIO MANAGER'S REPORT _____________________________________________________ COLUMBIA SMALL CAP GROWTH FUND For the six-month period ended February 29, 2004, Columbia Small Cap Growth Fund class Z shares returned 14.85% without sales charge. That was less than the return of the Russell 2000 Growth Index, which was 15.42%, and the Russell 2000 Index, which was 18.34%, during the same period. However, it was higher than the Lipper Small-Cap Growth Funds Category average, which was 14.45%.1 The fund benefited from its emphasis on technology stocks, which posted strong gains during the period, and from stock selection in the energy sector. However, our emphasis on companies with current earnings hurt our performance relative to the indices, since by far the best performance during the period was generated by more speculative companies. Investors were far more willing to take on risk as war worries lessened and economic recovery came into focus. SMALL CAP STOCKS BENEFITED IN IMPROVING ECONOMY With the end of major military action in Iraq and an economy on the mend, the US stock market moved higher during the six-month reporting period. Small caps were the greatest beneficiaries of the trend. Investors favored small caps on the expectation that they had more to gain in an improving economy. And, they favored sectors that were likely to benefit from a stronger economy. The fund was positioned to capitalize on both trends. STRONGEST GAINS FROM TECHNOLOGY STOCKS During this six-month period, the fund's strongest gains came from many of the same technology stocks that had been hit hard during the three-year bear market. Technology companies benefited from stronger demand as the economy improved. Among the fund's technology holdings, Cognizant Technology Solutions, Aspect Communications and F5 Networks did well. HIGH DEMAND FOR OIL AND GAS BOOSTS ENERGY SECTOR The fund's above-average weight in energy investments was a slight drag on performance, because the energy portion of the Russell 2000 Growth Index slightly trailed the overall index return. However, energy made a positive contribution to the fund's performance relative to the index because we were invested in the types of companies that did the best within the sector--energy producers and energy service companies. Energy, in general, benefited as cold weather and global economic growth resulted in higher demand for oil and gas. But energy producers and 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. 15 Sidebar: TOP 5 SECTORS AS OF 02/29/04 (%) Information technology 40.3 ------------------------------------- Health care 15.5 ------------------------------------- Consumer discretionary 14.6 ------------------------------------- Industrials 13.3 ------------------------------------- Energy 6.1 TOP 10 HOLDINGS AS OF 02/29/04 (%) Amphenol 2.4 ------------------------------------- Education Management 1.9 ------------------------------------- Fair Isaac 1.9 ------------------------------------- AVX 1.7 ------------------------------------- Autoliv 1.7 ------------------------------------- Electronics for Imaging 1.6 ------------------------------------- Polycom 1.5 ------------------------------------- Henry Schein 1.5 ------------------------------------- DaVita 1.4 ------------------------------------- Renal Care Group 1.4 HOLDINGS DISCUSSED IN THIS REPORT AS OF 02/29/04 (%) Cognizant Technology Solutions 0.7 ------------------------------------- Aspect Communications 1.0 ------------------------------------- F5 Networks 0.9 ------------------------------------- XTO Energy 1.3 ------------------------------------- National-Oilwell 1.2 ------------------------------------- Chesapeake Energy 0.5 Your fund is actively managed and the composition of its portfolio will change over time. Information provided is calculated as a percentage of net assets. ________________________________________________________________________________ COLUMBIA SMALL CAP GROWTH FUND service companies were the primary beneficiaries of these trends, as higher demand resulted in higher commodity prices and the expectation that drilling activity would be more attractive. These factors favored investments such as XTO Energy, National-Oilwell and Chesapeake Energy, which were strong performers for the fund. STRONG RETURNS FROM SPECULATIVE HEALTH CARE STOCKS In the health care sector, the fund was hurt by its emphasis on high-quality companies with track records of consistent earnings growth during a period when more speculative companies were the sector's top performers. However, we believe that our strategy will benefit the fund in the long-term, and we have stayed with it. We were also hurt by our position in First Health Group, which declined sharply in the face of strong competition from major health maintenance organizations. We sold the stock. POSITIONED FOR A RECOVERING ECONOMY At the end of the period, the fund was positioned to take advantage of an improving economy. We maintained our emphasis on technology companies, because their prospects are closely linked to economic growth. However, in light of the strong run-up in small-cap stock prices, we do not expect returns in 2004 to match the returns of 2003. We believe that investors are likely to become more selective--and more demanding of revenue and earnings growth to justify higher stock prices. As a result, we have focused on companies with reasonable valuations as well as growth prospects in order to manage the fund's overall risk exposure. Photo of Richard J. Johnson Richard J. Johnson, CFA, has managed Columbia Small Cap Growth Fund since October 1996 and has been with the advisor and its predecessors since 1994. /s/ Richard J. Johnson An investment in the fund offers the potential for long-term growth, but also involves certain risks, including stock market fluctuations due to economic and business developments. Investing in small-cap stocks may present special risks, including possible illiquidity and greater price volatility than stocks of larger, more established companies. 16 Sidebar: PERFORMANCE OF A $10,000 INVESTMENT 04/01/94 - 02/29/04 ($) SALES CHARGE WITHOUT WITH ----------------------------------- Class A 35,003 32,997 ----------------------------------- Class B 34,687 34,687 ----------------------------------- Class C 34,684 34,684 ----------------------------------- Class D 34,711 34,368 ----------------------------------- Class Z 35,222 n/a Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares may be worth more or less than the original cost. Please visit www.columbiafunds.com for daily and most recent month-end performance updates. PERFORMANCE INFORMATION_________________________________________________________ COLUMBIA REAL ESTATE EQUITY FUND VALUE OF A $10,000 INVESTMENT 04/01/94 - 02/29/04 (MOUNTAIN CHART) CLASS A CLASS A SHARES SHARES WITHOUT WITH NAREIT SALES CHARGE SALES CHARGE INDEX ------------ ------------ ----- 04/1994 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 29338.00 27651.00 26534.00 30098.00 28367.00 27436.00 30534.00 28779.00 27933.00 31817.00 29987.00 29150.00 33093.00 31190.00 30171.00 34135.00 32172.00 31474.00 02/2004 35003.00 32997.00 32030.00 The above illustration assumes a $10,000 investment made on April 1, 1994, and reinvestment of income and capital gains distributions. In addition, the graph and table do not reflect a deduction of the taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 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 or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. Index performance is from March 31, 1994. AVERAGE ANNUAL TOTAL RETURN AS OF 02/29/04 (%)
SHARE CLASS A B C D Z - ------------------------------------------------------------------------------------------------------- INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 04/01/94 - ------------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ------------------------------------------------------------------------------------------------------- 6-month (cumulative) 19.28 12.42 18.86 13.86 18.85 17.85 18.93 16.76 19.46 - ------------------------------------------------------------------------------------------------------- 1-year 44.96 36.63 43.84 38.84 43.82 42.82 44.02 41.56 45.58 - ------------------------------------------------------------------------------------------------------- 5-year 14.82 13.46 14.61 14.38 14.61 14.61 14.63 14.39 14.96 - ------------------------------------------------------------------------------------------------------- Life 13.47 12.80 13.37 13.37 13.37 13.37 13.38 13.26 13.54
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/03 (%)
SHARE CLASS A B C D Z - ----------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ----------------------------------------------------------------------------------------------------- 6-month (cumulative) 20.72 13.78 20.28 15.28 20.26 19.26 20.29 18.09 20.86 - ----------------------------------------------------------------------------------------------------- 1-year 34.93 27.17 33.91 28.91 33.90 32.90 33.95 31.62 35.47 - ----------------------------------------------------------------------------------------------------- 5-year 12.98 11.65 12.80 12.55 12.80 12.80 12.81 12.58 13.10 - ----------------------------------------------------------------------------------------------------- Life 13.06 12.38 12.97 12.97 12.97 12.97 12.97 12.86 13.12
All results shown assume reinvestment of distributions. The "with sales charge" returns include the maximum 5.75% charge for class A shares and 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%, and thereafter - 0%. Class C has a CDSC of 1% which is applicable for the first year only. Class D has a sales charge of 1% and 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, the 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. The returns for class C include the returns of class B prior to 10/13/03, the date on which class C was initially offered by the fund. The returns shown for class C also include the performance of class Z prior to the inception of class B (11/01/02). 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, C and D would have been lower. 17 Sidebar: SUMMARY o FOR THE SIX-MONTH PERIOD THAT ENDED FEBRUARY 29, 2004, THE FUND'S CLASS A SHARES RETURNED 19.28% WITHOUT SALES CHARGE. o THE FUND'S RETURN WAS LOWER THAN ITS BENCHMARK, THE NAREIT INDEX, AND LOWER THAN THE AVERAGE RETURN OF THE LIPPER REAL ESTATE FUNDS CATEGORY. o THE FUND'S INVESTMENTS IN PAPER AND FOREST PRODUCTS SECURITIES WERE LARGELY RESPONSIBLE FOR ITS RELATIVE UNDERPERFORMANCE DURING THE PERIOD, ALTHOUGH THESE HOLDINGS REBOUNDED LATE IN THE PERIOD. [Illustration of 2 arrows pointing up] CLASS A SHARES NAREIT INDEX 19.28% 20.69% OBJECTIVE Seeks capital appreciation and above-average income TOTAL NET ASSETS $1,088.0 million NET ASSET VALUE PER SHARE AS OF 02/29/04 ($) Class A 24.49 --------------------------- Class B 24.50 --------------------------- Class C 24.49 --------------------------- Class D 24.50 --------------------------- Class Z 24.51 DISTRIBUTIONS DECLARED PER SHARE 09/01/03 - 02/29/04 ($) Class A 0.54 --------------------------- Class B 0.45 --------------------------- Class C 0.28 --------------------------- Class D 0.46 --------------------------- Class Z 0.58 PORTFOLIO MANAGER'S REPORT _____________________________________________________ COLUMBIA REAL ESTATE EQUITY FUND For the six-month period ended February 29, 2004, Columbia Real Estate Equity Fund class A shares returned 19.28% without sales charge. Although the fund generated a strong absolute return, it was slightly less than the 20.69% gain of its benchmark, the NAREIT Index, a common measure of real estate securities' performance. The fund also underperformed the Lipper Real Estate Funds Category average, which was 20.37%.1 The fund's substantial allocation to paper and forest product securities and a relatively light exposure to health care REITs, which were one of the better-performing sectors in the index, were a slight drag on performance. SECTOR ALLOCATION DECISIONS AIDED RESULTS Average vacancy rates in major office markets were significantly higher than their historical average during the period. Similarly, apartment vacancy rates increased as weaker job growth decreased demand. We maintained an underweight position in both office and apartment REITs, which benefited the fund's return. In addition, our investments in cyclically-oriented sectors of the real estate markets, including higher-quality regional malls and shopping centers, and industrial and lodging companies, were solid performers. We did not participate in the rally in health care REITs. These companies rarely meet our selection criteria because their cash flow streams are dependent on government policy. CAPITAL INFLOWS BOOSTED VALUATIONS REITs continued to attract sizeable inflows of investor capital over the past six months, in many cases driving prices up to premium levels. As a result, we maintained the fund's defensive positioning. We continued to add to our investment in non-real-estate related companies, which accounted for 17% of the fund's net assets by the end of the period. (The fund's investment policy permits us to hold up to 20% of assets in non-real-estate related companies.) We like the paper and forest-products sectors because we believe they are early in their product pricing cycles and that cash flows are set to grow strongly. These stocks, many of which were disappointments when we first purchased them in the fourth quarter of 2002 and in early 2003, recovered nicely as manufacturing activity rebounded near the end of the period. We also added a relatively new investment vehicle called an income deposit security (IDS) by initiating a small position in Volume Services America Holdings, a national operator of concessions at stadiums and convention centers. Popular in Canada, an IDS combines a share of dividend-paying common stock along with an interest in corporate subordinated debt. The security pays both a dividend, which is now taxed at the lower dividend tax rate, and interest, which is taxed at the 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. 18 Sidebar: TOP 5 SECTORS AS OF 02/29/04 (%) Retail 28.3 ------------------------------------------ Industrial 26.2 ------------------------------------------ Office 14.4 ------------------------------------------ Residential 8.0 ------------------------------------------ Lodging 5.5 TOP 10 HOLDINGS AS OF 02/29/04 (%) Simon Property Group 6.0 ----------------------------------------- General Growth Properties 5.3 ----------------------------------------- iStar Financial 4.4 ----------------------------------------- ProLogis 4.2 ----------------------------------------- Bowater 3.9 ----------------------------------------- Alexandria Real Estate Equities 3.7 ----------------------------------------- Cousins Properties 3.7 ----------------------------------------- Rouse 3.6 ----------------------------------------- Regency Centers 3.5 ----------------------------------------- Duke Realty 3.4 HOLDINGS DISCUSSED IN THIS REPORT AS OF 02/29/04 (%) Volume Services America Holdings 1.0 Your fund is actively managed and the composition of its portfolio will change over time. Information provided is calculated as a percentage of net assets. ________________________________________________________________________________ COLUMBIA REAL ESTATE EQUITY FUND ordinary income tax rate. We purchased the security for its income potential--the yield was approximately 9% at the end of the period. We expect to add to our IDS allocation on a selective basis. RISKS MAY RISE FOR REITS Strong performance by REITs during the reporting period continued to be driven by investors seeking an alternative to lower-yielding fixed-income sectors. However, REITs face a number of challenges. Recent tax legislation may cause REITs to look relatively less attractive because, generally speaking, the dividends they pay are taxed at a higher rate than other dividends. Real estate stock valuations have been high for more than a year now. Although we were early in positioning the fund more defensively, we believe the portfolio's defensive positioning is appropriate for this environment. We believe that the environment for industrial REITs is likely to improve more quickly than for apartment and office REITs, and that expectation is reflected in our allocations at the end of the period. Over the long term, we believe that the fund's investments have the potential to benefit from the economic recovery that has been underway for nearly a year. David Jellison has managed the fund since 1994 and has been with the advisor and its predecessors since 1992. /s/ David Jellison 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. 19 Sidebar: PERFORMANCE OF A $10,000 INVESTMENT 11/09/00 - 02/29/04 ($) SALES CHARGE WITHOUT WITH ---------------------------------- Class A 7,353 6,931 ---------------------------------- Class B 7,273 7,055 ---------------------------------- Class C 7,273 7,273 ---------------------------------- Class D 7,303 7,231 ---------------------------------- Class Z 7,393 n/a Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares may be worth more or less than the original cost. Please visit www.columbiafunds.com for daily and most recent month-end performance updates. PERFORMANCE INFORMATION ________________________________________________________ COLUMBIA TECHNOLOGY FUND VALUE OF A $10,000 INVESTMENT 11/09/00 - 02/29/04 (MOUNTAIN CHART) CLASS A CLASS A MERRILL LYNCH SHARES SHARES 100 WITHOUT WITH TECHNOLOGY SALES CHARGE SALES CHARGE INDEX ------------ ------------ ------------- 11/2000 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 5907.00 5568.00 4353.00 5977.00 5634.00 4204.00 6727.00 6340.00 4711.00 7066.00 6660.00 4862.00 6977.00 6576.00 4871.00 7496.00 7065.00 5182.00 02/2004 7353.00 6931.00 5085.00 The above illustration assumes a $10,000 investment made on November 9, 2000, and reinvestment of income and capital gains distributions. In addition, the graph and table do not reflect a deduction of the taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 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 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 November 9, 2000. AVERAGE ANNUAL TOTAL RETURN AS OF 02/29/04 (%)
SHARE CLASS A B C D Z - -------------------------------------------------------------------------------------------------------------- INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 11/09/00 - -------------------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - -------------------------------------------------------------------------------------------------------------- 6-month (cumulative) 24.53 17.37 24.23 19.23 24.23 23.23 24.32 22.09 24.79 - -------------------------------------------------------------------------------------------------------------- 1-year 93.18 82.07 91.58 86.58 91.58 90.58 92.37 89.45 93.72 - -------------------------------------------------------------------------------------------------------------- Life -8.89 -10.50 -9.19 -10.02 -9.19 -9.19 -9.07 -9.35 -8.74
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/03 (%)
SHARE CLASS A B C D Z - ------------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ------------------------------------------------------------------------------------------------------- 6-month (cumulative) 39.88 31.84 39.80 34.80 39.80 38.80 39.56 37.17 40.12 - ------------------------------------------------------------------------------------------------------- 1-year 84.17 73.58 83.07 78.07 83.07 82.07 83.86 81.03 85.22 - ------------------------------------------------------------------------------------------------------- Life -10.84 -12.50 -11.08 -11.94 -11.08 -11.08 -10.96 -11.24 -10.68
All results shown assume reinvestment of distributions. The "with sales charge" returns include the maximum 5.75% charge for class A shares and 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%, and thereafter - 0%. Class C has a CDSC of 1% which is applicable for the first year only. Class D has a sales charge of 1% and 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, the 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. The returns for class C include the returns of class B prior to 10/13/03, the date on which class C was initially offered by the fund. The returns shown for class C also include the performance of class Z prior to the inception of class B (11/01/02). 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, C and D would have been lower. 20 Sidebar: SUMMARY o FOR THE SIX-MONTH PERIOD THAT ENDED FEBRUARY 29, 2004, THE FUND'S CLASS A SHARES RETURNED 24.53% WITHOUT SALES CHARGE. o THE FUND'S RETURN WAS SIGNIFICANTLY BETTER THAN BOTH THE MERRILL LYNCH 100 TECHNOLOGY INDEX AND THE LIPPER SCIENCE & Technology Funds Category average. o THE FUND'S EMPHASIS ON SEMICONDUCTOR AND WIRELESS COMPANIES, THE TWO TOP-PERFORMING INDUSTRIES FOR THE PERIOD, CONTRIBUTED TO ITS STRONG PERFORMANCE. [Illustration of 2 arrows pointing up] MERRILL LYNCH 100 CLASS A SHARES TECHNOLOGY INDEX 24.53% 16.80% OBJECTIVE Seeks capital appreciation TOTAL NET ASSETS $40.3 million NET ASSET VALUE PER SHARE AS OF 02/29/04 ($) Class A 7.36 -------------------------- Class B 7.28 -------------------------- Class C 7.28 -------------------------- Class D 7.31 -------------------------- Class Z 7.40 PORTFOLIO MANAGERS' REPORT _____________________________________________________ COLUMBIA TECHNOLOGY FUND For the six-month period ended February 29, 2004, Columbia Technology Fund class A shares returned 24.53% without sales charge. The fund outpaced its benchmark, the Merrill Lynch 100 Technology Index, which returned 16.80% for the same period. It also surpassed the Lipper Science & Technology Funds Category average of 13.33%.1 The fund's heavy emphasis on semiconductor and wireless companies--the two top-performing industries for the period--helped performance. HIGH RETURNS IN A RISING MARKET A growing economy in all areas except job creation helped propel technology stocks during the period. The largest gains came in the fourth quarter of 2003 and January, boosted by consumer purchases during the holidays and year-end corporate spending. In many cases, cost cutting efforts implemented during the tech downturn helped profitability as market conditions improved. In February the market was weaker, causing the fund to give back some of its gains. DIVERSIFICATION--AND A FEW BIG BETS Our strategy remained fairly consistent during the period, as we emphasized semiconductor and wireless companies. We pared back our exposure to Internet stocks and tended to favor larger, more stable companies. Of the approximately 120 stocks in the portfolio, we concentrated on those about which we felt particularly confident, which worked to our advantage during this period. FOCUS ON SEMICONDUCTORS AND WIRELESS PAID OFF During the period we established a large position--over 6% of net assets--in semiconductor manufacturer ZiLOG, which makes microcontrollers. Its price had been beaten down, but a new management team, cost cutting measures and a more focused strategy brought it back to life. It was one of our best performers. In the wireless area, we did well with Millicom International Cellular, a cellular service provider in developing countries such as Vietnam. Other international stocks that helped performance were American Tower and Crown Castle International, companies that own and operate communications towers in the United States, the United Kingdom and in the fast growing markets of Mexico and Brazil. OPPORTUNITIES IN SOFTWARE, OUTSOURCING Another theme we pursued was the growing trend for businesses--particularly outside the United States--to adopt the Linux operating 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. 21 Sidebar: TOP 5 SECTORS AS OF 02/29/04 (%) Semiconductors & semiconductor equipment 31.7 ----------------------------------------- Communications equipment 16.4 ----------------------------------------- Software 10.3 ----------------------------------------- Wireless telecommunication services 7.8 ----------------------------------------- IT services 6.3 TOP 10 HOLDINGS AS OF 02/29/04 (%) ZiLOG 6.2 ----------------------------------------- Formfactor 5.0 ----------------------------------------- ECI Telecom 3.8 ----------------------------------------- Samsung Electronics 3.5 ----------------------------------------- Millicom International Cellular 2.4 ----------------------------------------- Marvell Technology Group 2.4 ----------------------------------------- Vimpelcom 1.9 ----------------------------------------- XM Satellite Radio Holdings 1.8 ----------------------------------------- Telefonaktiebolaget LM Ericsson 1.8 ----------------------------------------- Agilent Technologies 1.7 HOLDINGS DISCUSSED IN THIS REPORT AS OF 02/29/04 (%) ZiLOG 6.2 ----------------------------------------- Millicom International Cellular 2.4 ----------------------------------------- American Tower 0.5 ----------------------------------------- Crown Castle International 0.9 ----------------------------------------- Microsoft 0.9 ----------------------------------------- Novell 1.1 ----------------------------------------- Cognizant Technology Solutions 1.6 Your fund is actively managed and the composition of its portfolio will change over time. Information provided is calculated as a percentage of net assets. ________________________________________________________________________________ COLUMBIA TECHNOLOGY FUND system, a major competitor to market leader Microsoft. Software company Novell was already in the portfolio, but we added to our stake when it became clear that the firm was repositioning itself as a major Linux player. Toward the end of the period we took some profits, but Novell remained one of our largest software holdings. We also initiated a successful position in Cognizant Technology Solutions in an effort to benefit from the outsourcing trend. Cognizant specializes in application maintenance services and software design with development centers in India, Ireland and the United States. STILL ROOM FOR GROWTH We believe there are plenty of opportunities ahead for technology stocks. Despite concerns about low job growth, we see underlying strengths in the economy that should benefit tech companies. Valuations have corrected themselves to healthy levels, but still with room for growth. Moving forward, we will continue to seek out investment opportunities that focus on product cycle themes, such as broadband and Linux, which we believe have the potential for above-average growth under a variety of market conditions. Wayne Collette has co-managed the Columbia Technology Fund since June 2002 and has been with the advisor and its predecessors since 2001. /s/ Wayne Collette Theodore Wendell has co-managed the fund since June 2002 and has been with the advisor and its predecessors since 2000. /s/ Theodore Wendell Trent Nevills has co-managed the fund since August 2003 and has been with the advisor since 2003. /s/ Trent Nevills 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. 22 Sidebar: PERFORMANCE OF A $10,000 INVESTMENT 11/09/00 - 02/29/04 ($) SALES CHARGE WITHOUT WITH ----------------------------------- Class A 18,938 17,852 ----------------------------------- Class B 18,730 18,430 ----------------------------------- Class C 18,730 18,730 ----------------------------------- Class D 18,710 18,525 ----------------------------------- Class Z 19,009 n/a Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares may be worth more or less than the original cost. Please visit www.columbiafunds.com for daily and most recent month-end performance updates. PERFORMANCE INFORMATION ________________________________________________________ COLUMBIA STRATEGIC INVESTOR FUND VALUE OF A $10,000 INVESTMENT 11/09/00 - 02/29/04 (MOUNTAIN CHART) CLASS A CLASS A SHARES SHARES RUSSELL WITHOUT WITH 3000 SALES SALES VALUE S&P 500 CHARGE CHARGE INDEX INDEX ------ ------ ----- ----- 11/2000 10000.00 9425.00 10000.00 10000.00 9790.00 9227.00 9730.00 9399.00 11224.00 10579.00 10253.00 9445.00 12274.00 11568.00 10308.00 9780.00 12254.00 11549.00 10040.00 8888.00 11984.00 11295.00 9699.00 8325.00 12934.00 12190.00 10172.00 8972.00 13743.00 12953.00 10403.00 9032.00 13963.00 13160.00 10218.00 8812.00 13884.00 13085.00 10182.00 8726.00 13664.00 12879.00 9799.00 8180.00 12325.00 11616.00 9082.00 7519.00 12736.00 12003.00 9024.00 7662.00 13896.00 13097.00 9558.00 8250.00 14568.00 13731.00 9808.00 8323.00 14599.00 13759.00 9747.00 8201.00 14719.00 13872.00 9766.00 8043.00 15591.00 14695.00 10248.00 8345.00 15521.00 14629.00 9951.00 7840.00 15541.00 14648.00 9970.00 7782.00 14900.00 14043.00 9426.00 7228.00 13636.00 12852.00 8510.00 6665.00 13676.00 12889.00 8567.00 6708.00 12311.00 11603.00 7639.00 5979.00 12894.00 12153.00 8172.00 6505.00 14141.00 13328.00 8696.00 6888.00 13310.00 12544.00 8318.00 6484.00 12945.00 12201.00 8115.00 6314.00 12681.00 11952.00 7895.00 6219.00 12620.00 11894.00 7913.00 6279.00 13827.00 13032.00 8613.00 6797.00 14982.00 14121.00 9192.00 7155.00 15125.00 14255.00 9310.00 7247.00 15601.00 14704.00 9472.00 7374.00 16169.00 15239.00 9634.00 7518.00 16037.00 15114.00 9539.00 7438.00 16928.00 15955.00 10137.00 7859.00 17294.00 16299.00 10294.00 7928.00 18117.00 17075.00 10908.00 8344.00 18503.00 17439.00 11114.00 8497.00 02/2004 18938.00 17852.00 11353.00 8614.00 The above illustration assumes a $10,000 investment made on November 9, 2000, and reinvestment of income and capital gains distributions. In addition, the graph and table do not reflect a deduction of the taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 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 indices. The S&P 500 Index tracks the performance of 500 large-capitalization US stocks. Unlike the fund, indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. Index performance is from November 9, 2000. AVERAGE ANNUAL TOTAL RETURN AS OF 02/29/04 (%)
SHARE CLASS A B C D Z - ---------------------------------------------------------------------------------------------------------- INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 11/09/00 - ---------------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ---------------------------------------------------------------------------------------------------------- 6-month (cumulative) 17.15 10.41 16.81 11.81 16.81 15.81 16.76 14.60 17.36 - ---------------------------------------------------------------------------------------------------------- 1-year 49.36 40.77 48.20 43.20 48.20 47.20 48.04 45.56 49.68 - ---------------------------------------------------------------------------------------------------------- Life 21.32 19.17 20.92 20.33 20.92 20.92 20.88 20.51 21.46
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/03 (%)
SHARE CLASS A B C D Z - ----------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ----------------------------------------------------------------------------------------------------- 6-month (cumulative) 19.79 12.90 19.43 14.43 19.43 18.43 19.38 17.20 20.01 - ----------------------------------------------------------------------------------------------------- 1-year 36.12 28.29 35.11 30.11 35.11 34.11 34.86 32.52 36.45 - ----------------------------------------------------------------------------------------------------- Life 20.81 18.56 20.44 19.80 20.44 20.44 20.40 20.02 20.93
All results shown assume reinvestment of distributions. 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%, and thereafter - 0%. Class C has a CDSC of 1% which is applicable for the first year only. Class D has a sales charge of 1% and 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, the 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. The returns for class C include the returns of class B prior to 10/13/03, the date on which class C was initially offered by the fund. The returns shown for class C also include the performance of class Z prior to the inception of class B (11/01/02). 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, C and D would have been lower. 23 Sidebar: SUMMARY o FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 29, 2004, THE FUND'S CLASS A SHARES RETURNED 17.15% WITHOUT SALES CHARGE. o THE FUND'S RETURN NEARLY MATCHED THAT OF ITS BENCHMARK, THE RUSSELL 3000 VALUE INDEX, AND BEAT BOTH THE S&P 500 AND THE LIPPER MULTI-CAP VALUE FUND CATEGORY. o THE FUND BENEFITED FROM INVESTMENTS IN CYCLICAL, SMALL-CAP, MID-CAP AND EMERGING MARKET STOCKS, BUT GAVE UP SOME RETURN BECAUSE OF ITS SIZABLE CASH POSITION. [Illustration of 2 arrows pointing up] RUSSELL 3000 CLASS A SHARES VALUE INDEX 17.15% 17.82% OBJECTIVE Seeks long-term growth TOTAL NET ASSETS $346.5 million NET ASSET VALUE PER SHARE AS OF 02/29/04 ($) Class A 18.61 --------------------------- Class B 18.48 --------------------------- Class C 18.48 --------------------------- Class D 18.46 --------------------------- Class Z 18.64 DISTRIBUTIONS DECLARED PER SHARE 09/01/03 - 02/29/04 ($) Class A 0.07 --------------------------- Class B 0.00 --------------------------- Class C 0.00 --------------------------- Class D 0.00 --------------------------- Class Z 0.11 PORTFOLIO MANAGERS' REPORT _____________________________________________________ COLUMBIA STRATEGIC INVESTOR FUND For the six-month period ended February 29, 2004, Columbia Strategic Investor Fund class A shares returned 17.15% without sales charge. The fund came out slightly behind the Russell 3000 Value Index, which returned 17.82%. A sizable cash position, which resulted from selling stocks that had appreciated, held back performance. However, the fund beat both the S&P 500 Index and the Lipper Multi-Cap Value Fund Category average, which returned 14.59%, and 16.65%, respectively.1 The fund benefited from a bias toward economically sensitive stocks as well as small- and mid-cap names, many of which posted strong gains. The fund's investments in the emerging markets of Eastern Europe, Russia and Indonesia also boosted performance. HEAVY CONCENTRATION IN CYCLICAL SECTORS The fund began the period with an emphasis on semiconductor, industrial and basic materials stocks that had the potential to benefit from an improving economy. As corporate profits and economic growth strengthened early in the six-month reporting period, these investments did well. Among our best gainers were semiconductor manufacturers Atmel and Texas Instruments. We sold Atmel because we believed the stock was fully valued. In addition, Polycom, a leader in voice and video conferencing, benefited from increased demand as companies continued to cut costs by reducing business travel. In the industrial sector, Copart, an auctioneer of wrecked vehicles and auto parts that is expanding its market potential by moving online, and Eaton, an engineering company, were also strong performers. Materials producers, such as Dow Chemical and Georgia-Pacific, a paper and pulp company, rallied nicely as demand and pricing improved. ATTRACTIVE VALUATIONS OVERSEAS, PARTICULARLY IN EMERGING MARKETS We found many attractively valued stocks overseas. Some of the fund's best gains came from cellular phone companies operating in emerging markets where current usage is relatively low but growing rapidly. Standouts included Millicom International Cellular, which is active in Vietnam, Pakistan and other emerging markets, and Russia's VimpelCom. We also increased foreign holdings within the financial sector because we believed they would hold up better if interest rates rose in the United States. In that regard, we added to existing positions in Japanese firms such as Mitsubishi Tokyo Financial Group and Nomura Holdings. 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. 24 Sidebar: TOP 5 SECTORS AS OF 02/29/04 (%) Financials 12.5 -------------------------------------- Consumer discretionary 11.4 -------------------------------------- Industrials 10.2 -------------------------------------- Information technology 10.1 -------------------------------------- Health care 9.2 TOP 10 HOLDINGS AS OF 02/29/04 (%) 3M 1.5 -------------------------------------- Millicom International Cellular 1.0 -------------------------------------- Pfizer 0.9 -------------------------------------- Schlumberger 0.9 -------------------------------------- Nokian Renkaat Oyj 0.9 -------------------------------------- Transocean 0.9 -------------------------------------- Wesco Financial 0.8 -------------------------------------- DST Systems 0.8 -------------------------------------- J.P. Morgan Chase 0.8 -------------------------------------- Citigroup 0.8 HOLDINGS DISCUSSED IN THIS REPORT AS OF 02/29/04 (%) Texas Instruments 0.4 -------------------------------------- Polycom 0.7 -------------------------------------- Copart 0.5 -------------------------------------- Eaton 0.7 -------------------------------------- Dow Chemical 0.6 -------------------------------------- Georgia-Pacific 0.4 -------------------------------------- Millicom International Cellular 1.0 -------------------------------------- VimpelCom 0.6 -------------------------------------- Mitsubishi Tokyo Financial Group 0.5 -------------------------------------- Nomura Holdings 0.3 -------------------------------------- Nokian Renkaat Oyj 0.9 -------------------------------------- Biogen Idec 0.7 -------------------------------------- Cytyc 0.3 -------------------------------------- Pfizer 0.9 -------------------------------------- Tenet Healthcare 0.2 Your fund is actively managed and the composition of its portfolio will change over time. Information provided is calculated as a percentage of net assets. ________________________________________________________________________________ COLUMBIA STRATEGIC INVESTOR FUND MIXED RESULTS FROM CONSUMER-RELATED SECTORS Within the consumer sector, the fund maintained a heavy concentration in media stocks, despite disappointing returns for the period. We expect spending on advertising to increase in advance of the presidential election and summer Olympics. We sold our stakes in other weak performers, including Newell Rubbermaid, which suffered when an expected turnaround failed to materialize. The fund, however, maintained a sizable investment in Nokian Renkaat Oyj, a Finnish tire company that rallied sharply as sales and profits improved in its key Nordic and Russian markets. MORE GROWTH-ORIENTED, LESS CYCLICAL FOCUS By period end, we believed many cyclical stocks had reached fair market value and we were concerned about the sustainability of the economic recovery beyond 2004. As a result, we shifted the fund more toward stocks with strong earnings growth prospects and fewer ties to the economy. New additions included health care stocks, such as Biogen Idec, a biotechnology company, and Cytyc, a testing company. We also doubled our stake in Pfizer, a large pharmaceutical company with an attractive valuation, and reduced our investment in Tenet Healthcare, a health services company mired in Medicare fraud issues. In the technology sector, we trimmed hardware stocks and replaced them with software stocks, which are less sensitive to economic conditions. Photo of: Robert A. Unger Robert A. Unger, CFA, has managed or co-managed Columbia Strategic Investor Fund since November 2000 and has been with the advisor and its predecessors since 1984. /s/ Robert A. Unger Photo of: Emil A. Gjester Emil A. Gjester has served as an assistant portfolio manager or co-portfolio manager of the fund since November 2002 and has been with the advisor and its predecessors since 1996. /s/ Emil A. Gjester 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. 25 Sidebar: PERFORMANCE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04 ($) SALES CHARGE WITHOUT WITH ----------------------------------- Class A 22,021 20,753 ----------------------------------- Class B 21,811 21,811 ----------------------------------- Class C 21,812 21,812 ----------------------------------- Class D 21,830 21,614 ----------------------------------- Class Z 22,159 n/a Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares may be worth more or less than the original cost. Please visit www.columbiafunds.com for daily and most recent month-end performance updates. PERFORMANCE INFORMATION ________________________________________________________ COLUMBIA BALANCED FUND VALUE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04 (MOUNTAIN CHART) CLASS A CLASS A SHARES SHARES LEHMAN WITHOUT WITH S & P BROTHERS SALES SALES 500 AGGREGATE CHARGE CHARGE INDEX BOND INDEX ------ ------ ----- ---------- 03/01/94 10000.00 9425.00 10000.00 10000.00 9700.00 9142.00 9564.00 9753.00 9745.00 9184.00 9686.00 9675.00 9851.00 9284.00 9845.00 9674.00 9666.00 9110.00 9604.00 9653.00 9959.00 9387.00 9919.00 9845.00 10140.00 9557.00 10326.00 9857.00 9942.00 9370.00 10073.00 9712.00 9959.00 9386.00 10299.00 9703.00 9817.00 9252.00 9925.00 9682.00 9959.00 9386.00 10071.00 9748.00 10097.00 9517.00 10332.00 9941.00 10431.00 9832.00 10735.00 10178.00 10582.00 9973.00 11052.00 10240.00 10715.00 10099.00 11377.00 10384.00 11087.00 10449.00 11832.00 10785.00 11232.00 10586.00 12106.00 10864.00 11449.00 10791.00 12508.00 10840.00 11573.00 10907.00 12540.00 10971.00 11836.00 11156.00 13069.00 11078.00 11819.00 11139.00 13022.00 11222.00 12168.00 11469.00 13593.00 11390.00 12456.00 11739.00 13856.00 11550.00 12611.00 11886.00 14327.00 11626.00 12605.00 11880.00 14460.00 11424.00 12705.00 11974.00 14599.00 11344.00 12754.00 12021.00 14813.00 11280.00 12879.00 12139.00 15196.00 11257.00 12999.00 12251.00 15253.00 11408.00 12734.00 12002.00 14579.00 11439.00 12936.00 12192.00 14887.00 11420.00 13328.00 12562.00 15725.00 11618.00 13487.00 12711.00 16159.00 11876.00 14072.00 13263.00 17381.00 12079.00 13924.00 13124.00 17036.00 11967.00 14267.00 13447.00 18101.00 12004.00 14308.00 13486.00 18242.00 12034.00 14094.00 13283.00 17493.00 11901.00 14488.00 13655.00 18537.00 12079.00 14972.00 14111.00 19666.00 12194.00 15421.00 14535.00 20547.00 12339.00 16300.00 15363.00 22182.00 12672.00 15805.00 14896.00 20940.00 12564.00 16252.00 15318.00 22088.00 12749.00 16068.00 15144.00 21350.00 12934.00 16385.00 15443.00 22339.00 12993.00 16532.00 15582.00 22723.00 13125.00 16764.00 15800.00 22975.00 13293.00 17351.00 16353.00 24631.00 13282.00 17845.00 16819.00 25893.00 13327.00 17947.00 16915.00 26154.00 13397.00 17870.00 16842.00 25704.00 13524.00 18468.00 17406.00 26748.00 13639.00 18391.00 17333.00 26464.00 13667.00 17010.00 16032.00 22638.00 13890.00 17590.00 16578.00 24089.00 14215.00 18160.00 17115.00 26047.00 14140.00 18831.00 17749.00 27626.00 14220.00 19852.00 18711.00 29217.00 14263.00 20418.00 19244.00 30438.00 14364.00 19965.00 18817.00 29491.00 14113.00 20615.00 19430.00 30671.00 14191.00 20813.00 19617.00 31858.00 14236.00 20407.00 19234.00 31106.00 14111.00 21105.00 19892.00 32833.00 14066.00 20688.00 19498.00 31808.00 14005.00 20443.00 19268.00 31652.00 13998.00 20347.00 19177.00 30785.00 14160.00 20978.00 19772.00 32734.00 14213.00 21425.00 20193.00 33398.00 14211.00 22370.00 21084.00 35365.00 14143.00 21853.00 20596.00 33590.00 14097.00 22487.00 21194.00 32955.00 14267.00 23917.00 22542.00 36178.00 14455.00 23417.00 22071.00 35089.00 14414.00 22834.00 21521.00 34370.00 14406.00 23590.00 22233.00 35219.00 14706.00 23517.00 22164.00 34669.00 14840.00 24526.00 23115.00 36822.00 15055.00 23491.00 22140.00 34878.00 15150.00 23143.00 21812.00 34732.00 15250.00 22164.00 20890.00 31995.00 15500.00 22556.00 21259.00 32152.00 15788.00 22969.00 21648.00 33293.00 16047.00 21524.00 20287.00 30257.00 16187.00 20788.00 19593.00 28338.00 16268.00 21688.00 20441.00 30540.00 16199.00 21788.00 20535.00 30745.00 16297.00 21481.00 20246.00 29998.00 16358.00 21421.00 20189.00 29704.00 16725.00 20643.00 19456.00 27844.00 16917.00 19607.00 18479.00 25595.00 17115.00 19987.00 18838.00 26083.00 17473.00 20771.00 19576.00 28084.00 17232.00 20887.00 19686.00 28331.00 17121.00 20595.00 19410.00 27918.00 17260.00 20413.00 19240.00 27379.00 17428.00 20707.00 19517.00 28408.00 17138.00 20016.00 18865.00 26687.00 17471.00 20088.00 18933.00 26489.00 17619.00 19244.00 18138.00 24603.00 17771.00 18261.00 17211.00 22687.00 17986.00 18507.00 17443.00 22834.00 18290.00 17473.00 16468.00 20352.00 18586.00 18144.00 17100.00 22143.00 18501.00 18846.00 17762.00 23447.00 18495.00 18179.00 17133.00 22071.00 18878.00 17940.00 16909.00 21493.00 18895.00 17836.00 16811.00 21170.00 19156.00 17910.00 16880.00 21375.00 19140.00 18827.00 17744.00 23137.00 19299.00 19472.00 18353.00 24356.00 19658.00 19579.00 18454.00 24668.00 19619.00 19611.00 18483.00 25102.00 18960.00 20060.00 18906.00 25592.00 19085.00 19988.00 18838.00 25320.00 19591.00 20659.00 19471.00 26753.00 19408.00 20837.00 19639.00 26989.00 19455.00 21466.00 20232.00 28403.00 19653.00 21666.00 20420.00 28926.00 19811.00 02/29/04 22021.00 20753.00 29318.00 20029.00 The above illustration assumes a $10,000 investment made on March 1, 1994, and reinvestment of income and capital gains distributions. In addition, the graph and table do not reflect a deduction of the taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The Lehman Brothers Aggregate Bond Index is an unmanaged index that represents average market-weighted performance of US 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 large-capitalization US stocks. Unlike the fund, indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. AVERAGE ANNUAL TOTAL RETURN AS OF 02/29/04 (%)
SHARE CLASS A B C D Z - -------------------------------------------------------------------------------------------------------------- INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 10/01/91 - -------------------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - -------------------------------------------------------------------------------------------------------------- 6-month (cumulative) 9.79 3.47 9.40 4.40 9.40 8.40 9.37 7.29 9.99 - -------------------------------------------------------------------------------------------------------------- 1-year 23.48 16.38 22.60 17.60 22.60 21.60 22.77 20.56 24.08 - -------------------------------------------------------------------------------------------------------------- 5-year 1.98 0.78 1.79 1.45 1.79 1.79 1.80 1.59 2.11 - -------------------------------------------------------------------------------------------------------------- 10-year 8.21 7.57 8.11 8.11 8.11 8.11 8.12 8.01 8.28
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/03 (%)
SHARE CLASS A B C D Z - ----------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ----------------------------------------------------------------------------------------------------- 6-month (cumulative) 9.64 3.33 9.29 4.29 9.29 8.29 9.32 7.24 9.90 - ----------------------------------------------------------------------------------------------------- 1- year 18.08 11.29 17.28 12.28 17.28 16.28 17.44 15.28 18.73 - ----------------------------------------------------------------------------------------------------- 5-year 1.57 0.38 1.41 1.07 1.41 1.41 1.42 1.22 1.69 - ----------------------------------------------------------------------------------------------------- 10-year 7.99 7.35 7.90 7.90 7.90 7.90 7.91 7.80 8.05
All results shown assume reinvestment of distributions. 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%, and thereafter - 0%. Class C has a CDSC of 1% which is applicable for the first year only. Class D has a sales charge of 1% and 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, the 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. The returns for class C include the returns of class B prior to 10/13/03, the date on which class C was initially offered by the fund. The returns shown for class C also include the performance of class Z prior to the inception of class B (11/01/02). 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, C, and D would have been lower. 26 Sidebar: SUMMARY o FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 29, 2004, THE FUND'S CLASS A SHARES RETURNED 9.79% WITHOUT SALES CHARGE. o THE FUND'S RETURN WAS LOWER THAN BOTH THE STANDARD & POOR'S 500 INDEX AND THE LIPPER BALANCED FUNDS CATEGORY AVERAGE, BUT AHEAD OF THE LEHMAN BROTHERS AGGREGATE BOND INDEX. o ABOVE-AVERAGE EXPOSURE TO INDUSTRIAL STOCKS HURT RELATIVE PERFORMANCE WITHIN THE FUND'S STOCK PORTFOLIO. THE FIXED INCOME PORTION OF THE FUND TRACKED ITS BENCHMARK. [Illustration of 2 arrows pointing up] S&P 500 CLASS A SHARES INDEX 9.79% 14.59% OBJECTIVE Seeks high total return TOTAL NET ASSETS $622.1 million NET ASSET VALUE PER SHARE AS OF 02/29/04 ($) Class A 20.92 --------------------------- Class B 20.90 --------------------------- Class C 20.90 --------------------------- Class D 20.89 --------------------------- Class Z 20.91 DISTRIBUTIONS DECLARED PER SHARE 09/01/03 - 02/29/04 ($) Class A 0.13 --------------------------- Class B 0.06 --------------------------- Class C 0.04 --------------------------- Class D 0.07 --------------------------- Class Z 0.18 PORTFOLIO MANAGERS' REPORT _____________________________________________________ COLUMBIA BALANCED FUND For the six-month period ended February 29, 2004, Columbia Balanced Fund class A shares returned 9.79% without sales charge. That was higher than the Lehman Brothers Aggregate Bond Index, which returned 4.92%, and lower than the S&P 500 Index, which returned 14.59%. The fund's performance was slightly lower than the Lipper Balanced Funds Category average, which returned 10.56%.1 The fund's above-average exposure to industrial stocks hurt relative performance within the fund's stock portfolio when that sector declined from late December through early February. The fund's emphasis on asset-backed securities and a modest holding of lower quality bonds helped performance within the fixed income portion of the fund. But those gains were almost entirely offset by the fund's relatively short duration, which held back performance as interest rates declined. FUND POSITIONED FOR RECOVERING ECONOMY During the period, the portfolio was positioned for a recovering economy, with higher allocations in economically-sensitive sectors such as industrials, information technology, basic materials and consumer cyclicals. Our decision to overweight these sectors relative to the S&P 500 Index produced mixed results. Our investments in basic materials stocks did well, while industrial and cyclical stocks detracted from relative performance. Although industrial stocks 3M, Dover and General Electric all had positive returns for the period, they failed to keep pace with their industry peers and the S&P 500 Index. We sold our position in Dover during the period. In technology, where we focused on broadband, wireless information access and digital media, the fund benefited from good stock selection. Our positions in National Semiconductor and Advanced Micro Devices both gained more than 30%, while Motorola rose 73% during the period. On the down side, Seagate Technology fared poorly when its earnings disappointed overly hopeful investors. We also missed out on gains from the telecommunications and utilities sector, which were strong performers, because the fund had little exposure to either group. FIXED-INCOME RETURNS STILL MUTED The return on the fund's bond holdings was in line with the Lehman Brothers Aggregate Bond Index. The fund's small position in B and BB-rated bonds, which was well within its 10% limit on below-investment grade securities, and an emphasis on asset-backed securities aided performance. However, we maintained a slightly shorter duration than our benchmark and that hurt performance. Duration is a measure of interest rate sensitivity. We shortened duration because we expected interest rates to rise in a strengthening economy, and our shorter 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. 27 Sidebar: PORTFOLIO COMPOSITION AS OF 02/29/04 (%) Common stock 65.9 ----------------------------------------- Corporate notes & bonds 13.8 ----------------------------------------- Government issues 13.7 ----------------------------------------- Collateralized mortgage obligations 2.3 ----------------------------------------- Cash & cash equivalents, net receivables & payables 1.2 ----------------------------------------- Asset-backed securities 1.1 ----------------------------------------- Preferred stock 1.0 ----------------------------------------- Commercial mortgage-backed securities 1.0 TOP 10 EQUITY HOLDINGS AS OF 02/29/04 (%) Wal-Mart Stores 2.8 ----------------------------------------- Citigroup 2.6 ----------------------------------------- General Electric 2.3 ----------------------------------------- Pfizer 2.2 ----------------------------------------- Microsoft 1.9 ----------------------------------------- Dow Chemical 1.6 ----------------------------------------- Exxon Mobil 1.6 ----------------------------------------- American Express 1.3 ----------------------------------------- Bank One 1.2 ----------------------------------------- American International Group 1.2 HOLDINGS DISCUSSED IN THIS REPORT AS OF 02/29/04 (%) 3M 0.7 ----------------------------------------- General Electric 2.3 ----------------------------------------- National Semiconductor 0.3 ----------------------------------------- Advanced Micro Devices 0.3 ----------------------------------------- Motorola 0.3 ----------------------------------------- Seagate Technology 0.4 Your fund is actively managed and the composition of its portfolio will change over time. Information provided is calculated as a percentage of net assets. ________________________________________________________________________________ COLUMBIA BALANCED FUND duration would have afforded the fund some protection because interest rates and bond prices move in opposite directions. Instead, interest rates fell and the fund gave up some performance because of this move. TEMPERING EXPECTATIONS Looking ahead, we believe the economy has the potential to continue to expand, but future growth is likely to be somewhat slower as we move from recovery into an economic growth phase. We think there will probably be continued volatility in interest rates as investors try to come to grips with a strong economy and rising commodity prices, on one hand, but little or no rise in job growth on the other. We have positioned the portfolio for a positive economic environment, but may begin to shift our allocations to favor companies that will do well in a slower growing economy. Columbia Balanced Fund is managed by a group of managers from Columbia's large cap core team: /s/ Scott J. Drysdale /s/ Ronald F. Gibbs Scott J. Drysdale Ronald F. Gibbs, CFA /s/ Trent E. Nevills /s/ Guy W. Pope Trent E. Nevills Guy W. Pope, CFA and Columbia's bond team: /s/ Leonard A. Aplet /s/ Jeffrey L. Rippey Leonard A. Aplet, CFA Jeffrey L. Rippey, CFA 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. 28 Sidebar: PERFORMANCE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04 ($) SALES CHARGE WITHOUT WITH ----------------------------------- Class A 16,516 15,737 ----------------------------------- Class B 16,347 16,347 ----------------------------------- Class C 16,373 16,373 ----------------------------------- Class D 16,478 16,321 ----------------------------------- Class G 16,397 16,397 ----------------------------------- Class T 16,542 15,763 ----------------------------------- Class Z 16,586 n/a Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares may be worth more or less than the original cost. Please visit www.columbiafunds.com for daily and most recent month-end performance updates. PERFORMANCE INFORMATION ________________________________________________________ COLUMBIA SHORT TERM BOND FUND VALUE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04 (MOUNTAIN CHART) CLASS A MERRILL CLASS A SHARES LYNCH MERRILL LYNCH SHARES WITH 1-3 YEAR 1-5 YEAR WITHOUT SALES TREASURY GOVERNMENT/ SALES CHARGE CHARGE INDEX CORPORATE INDEX ------------ ------ ----- --------------- 03/1994 10000.00 9525.00 10000.00 10000.00 9947.00 9475.00 9950.00 9909.00 9918.00 9447.00 9915.00 9852.00 9928.00 9456.00 9929.00 9865.00 9951.00 9478.00 9959.00 9886.00 10026.00 9549.00 10044.00 9991.00 10054.00 9576.00 10080.00 10027.00 10022.00 9546.00 10056.00 9975.00 10041.00 9565.00 10079.00 9989.00 10011.00 9536.00 10033.00 9937.00 10022.00 9546.00 10056.00 9963.00 10147.00 9665.00 10196.00 10114.00 10254.00 9767.00 10336.00 10286.00 10307.00 9817.00 10394.00 10348.00 10395.00 9901.00 10486.00 10454.00 10561.00 10060.00 10670.00 10699.00 10609.00 10105.00 10727.00 10763.00 10642.00 10136.00 10771.00 10791.00 10701.00 10193.00 10836.00 10865.00 10747.00 10237.00 10889.00 10927.00 10847.00 10332.00 10980.00 11034.00 10959.00 10439.00 11077.00 11151.00 11045.00 10520.00 11162.00 11252.00 11143.00 10614.00 11257.00 11352.00 11064.00 10538.00 11210.00 11274.00 11014.00 10491.00 11200.00 11242.00 11003.00 10480.00 11209.00 11231.00 11009.00 10486.00 11232.00 11239.00 11094.00 10567.00 11313.00 11335.00 11130.00 10601.00 11357.00 11376.00 11151.00 10621.00 11396.00 11403.00 11268.00 10733.00 11500.00 11529.00 11402.00 10861.00 11630.00 11688.00 11492.00 10946.00 11719.00 11802.00 11472.00 10927.00 11719.00 11772.00 11520.00 10973.00 11774.00 11825.00 11536.00 10988.00 11801.00 11845.00 11502.00 10956.00 11797.00 11816.00 11608.00 11057.00 11893.00 11930.00 11673.00 11119.00 11974.00 12017.00 11750.00 11192.00 12057.00 12111.00 11887.00 11322.00 12189.00 12289.00 11878.00 11314.00 12200.00 12272.00 11956.00 11388.00 12293.00 12386.00 12049.00 11476.00 12384.00 12497.00 12054.00 11481.00 12414.00 12521.00 12133.00 11557.00 12498.00 12614.00 12256.00 11674.00 12620.00 12761.00 12241.00 11660.00 12631.00 12759.00 12275.00 11692.00 12683.00 12808.00 12338.00 11752.00 12742.00 12869.00 12402.00 11813.00 12810.00 12947.00 12450.00 11859.00 12876.00 13022.00 12500.00 11906.00 12937.00 13081.00 12669.00 12067.00 13100.00 13270.00 12851.00 12241.00 13273.00 13508.00 12914.00 12301.00 13338.00 13551.00 12868.00 12257.00 13326.00 13532.00 12914.00 12301.00 13373.00 13582.00 12958.00 12343.00 13426.00 13650.00 12857.00 12246.00 13360.00 13527.00 12946.00 12331.00 13452.00 13638.00 12972.00 12355.00 13495.00 13683.00 12937.00 12322.00 13487.00 13630.00 12978.00 12362.00 13529.00 13669.00 13005.00 12388.00 13572.00 13684.00 13017.00 12399.00 13612.00 13712.00 13092.00 12471.00 13700.00 13823.00 13107.00 12484.00 13737.00 13855.00 13120.00 12497.00 13763.00 13877.00 13145.00 12521.00 13783.00 13880.00 13133.00 12509.00 13777.00 13849.00 13214.00 12587.00 13869.00 13947.00 13267.00 12637.00 13955.00 14056.00 13303.00 12671.00 13992.00 14066.00 13358.00 12723.00 14049.00 14107.00 13462.00 12822.00 14195.00 14293.00 13518.00 12876.00 14285.00 14395.00 13609.00 12963.00 14390.00 14528.00 13666.00 13017.00 14494.00 14659.00 13725.00 13073.00 14572.00 14725.00 13877.00 13218.00 14711.00 14894.00 14101.00 13431.00 14886.00 15110.00 14274.00 13596.00 15072.00 15330.00 14391.00 13708.00 15170.00 15449.00 14496.00 13808.00 15296.00 15590.00 14512.00 13823.00 15337.00 15599.00 14596.00 13903.00 15423.00 15691.00 14647.00 13952.00 15475.00 15749.00 14872.00 14165.00 15649.00 16001.00 14992.00 14280.00 15739.00 16118.00 15194.00 14473.00 15999.00 16406.00 15380.00 14649.00 16151.00 16600.00 15280.00 14554.00 16116.00 16500.00 15242.00 14518.00 16122.00 16466.00 15298.00 14571.00 16154.00 16514.00 15367.00 14637.00 16232.00 16616.00 15279.00 14554.00 16121.00 16450.00 15464.00 14730.00 16302.00 16677.00 15558.00 14819.00 16367.00 16805.00 15650.00 14907.00 16505.00 16951.00 15743.00 14995.00 16706.00 17168.00 15854.00 15101.00 16763.00 17314.00 16019.00 15258.00 16902.00 17534.00 15933.00 15176.00 16941.00 17532.00 15936.00 15179.00 16888.00 17501.00 16081.00 15317.00 17049.00 17769.00 16100.00 15336.00 17047.00 17777.00 16227.00 15457.00 17119.00 17934.00 16242.00 15471.00 17149.00 17970.00 16305.00 15531.00 17182.00 18051.00 16428.00 15647.00 17247.00 18244.00 16434.00 15654.00 17273.00 18268.00 16193.00 15424.00 17180.00 18032.00 16212.00 15442.00 17192.00 18043.00 16384.00 15606.00 17348.00 18330.00 16332.00 15556.00 17284.00 18218.00 16320.00 15545.00 17276.00 18216.00 16423.00 15643.00 17376.00 18354.00 16471.00 15688.00 17411.00 18422.00 02/2004 16516.00 15737.00 17490.00 18561.00 The above illustration assumes a $10,000 investment made on March 1, 1994, and reinvestment of income and capital gains distributions. In addition, the graph and table do not reflect a deduction of the taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The Merrill Lynch 1-3 Year Treasury Index is an unmanaged index that measures the return of Treasury bills with maturities of 1-3 years and is intended to provide a benchmark for the prior investment objective and strategy of the fund. 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. Unlike the fund, indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. AVERAGE ANNUAL TOTAL RETURN AS OF 02/29/04 (%)
SHARE CLASS A B C D G T Z - ------------------------------------------------------------------------------------------------------------------------- INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 11/01/02 11/01/02 11/06/86 - ------------------------------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ------------------------------------------------------------------------------------------------------------------------- 6-month (cumulative) 1.89 -2.95 1.49 -3.51 1.65 0.65 1.82 -0.23 1.59 -3.41 1.93 -2.92 2.02 - ------------------------------------------------------------------------------------------------------------------------- 1-year 1.80 -2.99 1.05 -3.94 1.21 0.22 1.66 -0.37 1.24 -3.76 1.93 -2.86 2.10 - ------------------------------------------------------------------------------------------------------------------------- 5-year 5.14 4.13 4.92 4.59 4.95 4.95 5.09 4.89 4.98 4.49 5.17 4.16 5.23 - ------------------------------------------------------------------------------------------------------------------------- 10-year 5.15 4.64 5.04 5.04 5.05 5.05 5.12 5.02 5.07 5.07 5.16 4.66 5.19
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/03 (%)
SHARE CLASS A B C D G T Z - ------------------------------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ------------------------------------------------------------------------------------------------------------------------- 6-month (cumulative) -0.06 -4.84 -0.46 -5.41 -0.32 -1.31 -0.14 -2.13 -0.36 -5.31 -0.02 -4.81 0.07 - ------------------------------------------------------------------------------------------------------------------------- 1-year 2.14 -2.69 1.38 -3.62 1.52 0.52 1.99 -0.05 1.58 -3.42 2.27 -2.56 2.47 - ------------------------------------------------------------------------------------------------------------------------- 5-year 4.92 3.90 4.73 4.40 4.76 4.76 4.88 4.68 4.79 4.29 4.95 3.93 5.00 - ------------------------------------------------------------------------------------------------------------------------- 10-year 5.06 4.54 4.96 4.96 4.98 4.98 5.04 4.94 4.99 4.99 5.07 4.56 5.10
All results shown assume reinvestment of distributions. 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%, and thereafter - 0%. Class C has a CDSC of 1% which is applicable for the first year only. Class D has a sales charge of 1% and 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, the 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. The returns for class C include the returns of class B prior to 10/13/03, the date on which class C was initially offered by the fund. The returns shown for class C also include the performance of class Z prior to the inception of class B (11/01/02). 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, C, D, G and T would have been lower. 29 Sidebar: SUMMARY o FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 29, 2004, THE FUND'S CLASS A SHARES RETURNED 1.89% WITHOUT SALES CHARGE. o THE FUND'S RETURN WAS HIGHER THAN THE MERRILL LYNCH 1-3 YEAR TREASURY INDEX, BUT LESS THAN THE MERRILL LYNCH 1-5 YEAR GOVERNMENT/CORPORATE INDEX AND THE LIPPER SHORT TERM INVESTMENT GRADE DEBT CATEGORY AVERAGE. o THE FUND'S EMPHASIS ON BOTH SHORT-TERM FLOATING RATE NOTES AND LONGER-TERM SECURITIES WITHIN THE FUND'S MATURITY RANGE AIDED PERFORMANCE DURING THE PERIOD. [Illustration of 2 arrows pointing up] MERRILL LYNCH 1-3 CLASS A SHARES YEAR TREASURY INDEX 1.89% 1.75% OBJECTIVE Seeks a high level of current income consistent with a high degree of principal stability TOTAL NET ASSETS $543.5 million NET ASSET VALUE PER SHARE AS OF 02/29/04 ($) Class A 8.70 -------------------------- Class B 8.70 -------------------------- Class C 8.70 -------------------------- Class D 8.70 -------------------------- Class G 8.70 -------------------------- Class T 8.70 -------------------------- Class Z 8.70 DISTRIBUTIONS DECLARED PER SHARE 09/01/03 - 02/29/04 ($) Class A 0.08 -------------------------- Class B 0.05 -------------------------- Class C 0.05 -------------------------- Class D 0.08 -------------------------- Class G 0.06 -------------------------- Class T 0.09 -------------------------- Class Z 0.09 PORTFOLIO MANAGERS' REPORT _____________________________________________________ COLUMBIA SHORT TERM BOND FUND For the six-month period ended February 29, 2004, Columbia Short Term Bond Fund class A shares returned 1.89% without sales charge. The fund's performance was higher than the benchmark Merrill Lynch 1-3 Year Treasury Index, which returned 1.75%, and lower than the Merrill Lynch 1-5 Year Government/Corporate Index, which returned 2.84%, during the period. The fund slightly underperformed its peer group. The Lipper Short Term Investment Grade Debt Category average was 2.02%.1 The fund's "barbell" structure--emphasizing short-term floating rate notes and longer-term securities within the fund's maturity range--aided performance during the period. BONDS PERFORMED WELL EVEN AS THE ECONOMY IMPROVED Most economic indicators were strong throughout the second half of 2003, highlighted by impressive third-quarter GDP growth of 8.2%. Fourth quarter GDP growth of 4.1% was moderate by comparison, but still indicative of a recovering economy. Although interest rates tend to rise as economic activity picks up, the Federal Reserve Board has maintained a monetary policy aimed at keeping interest rates low because inflationary pressures have not materialized and the job market has remained sluggish. The Fed left a key short-term interest rate--the fed funds rate--unchanged at just 1.0% throughout the period. Against this backdrop, rates on 2-year Treasury notes fell by 33 basis points and the 5-year Treasury rate declined by 53 basis points. A basis point is one one-hundredth of a percent. The market environment that prevailed during the period favored fixed-income investments with longer maturities. Generally speaking, risk-taking was rewarded throughout the bond market, as lower-quality securities consistently outperformed investment grade bonds. These trends were modestly negative for the fund, which focuses on higher-quality short-term bonds. BARBELL APPROACH OFFSETS IMPACT OF SHORTER DURATION The fund was able to generate a competitive return even though its overall duration was shorter than that of the benchmark. Duration is a measure of interest rate sensitivity. By keeping the fund's duration short while interest rates declined, we gave up some performance relative to the market. However we more than made up for that decision with the fund's "barbell" investment approach--combining short-term floating rate instruments with securities at the long end of our maturity spectrum (five years). The floating rate securities carried higher yields than Treasury securities of comparable maturities, while the longer-term securities increased in value as long-term rates declined. 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. 30 Sidebar: PORTFOLIO QUALITY AS OF 02/29/04 (%) Aaa 37.1 ---------------------------------- Aa 11.4 ---------------------------------- A 20.0 ---------------------------------- Baa 10.3 ---------------------------------- Agency 17.4 ---------------------------------- Treasury 3.8 Portfolio quality is calculated as a percentage of total investments. Ratings shown represent the highest rating assigned to a particular bond by one of the following nationally recognized rating agencies: Standard & Poor's Corporation, Moody's Investors Service, Inc. or Fitch Investors Service, Inc. PORTFOLIO COMPOSITION AS OF 02/29/04 (%) Corporate notes & bonds 39.5 ------------------------------------------ Collateralized mortgage obligations 20.3 ------------------------------------------ U.s. Government & Agency 18.4 ------------------------------------------ Asset-backed securities 13.7 ------------------------------------------ Cash & Cash Equivalents, net receivables & payables 7.3 ------------------------------------------ Commercial mortgage-backed securities 0.8 MATURITY BREAKDOWN AS OF 02/29/04 (%) 0-1 YEARS 50.1 ------------------------------------------ 1-3 YEARS 31.9 ------------------------------------------ 3-5 YEARS 16.0 ------------------------------------------ 5+ YEARS 2.0 Your fund is actively managed and the composition of its portfolio will change over time. Portfolio composition and holdings discussed are calculated as a percentage of net assets. ________________________________________________________________________________ COLUMBIA SHORT TERM BOND FUND We also repositioned the fund's mortgage investments during the period. We modestly shifted away from conventional pass-through securities in favor of structured instruments, such as collateralized mortgage obligations (CMOs). This move was designed to defend against changes in mortgage prepayment activity. Mortgage prepayments have been quite high due to low mortgage rates. But if rates rise and the level of prepayments drops, it would hurt the value of conventional mortgage bonds. Separately, we increased our position in corporate bonds from 32% to 39% of the portfolio. As yields on corporate bonds came down during the period, their prices rose and this move aided overall performance. PREPARING FOR HIGHER INTEREST RATES We expect the economy to continue to expand throughout 2004. If the economy lives up to this estimate, we expect economic growth to translate into higher short-term interest rates, especially if the labor market begins to improve. Although the timing of such an upward shift is impossible to pinpoint, the portfolio's shorter-than-average duration and its emphasis on floating rate securities make it well positioned for such a scenario, and our emphasis on relatively well-structured mortgage-related securities should provide additional protection. Leonard A. Aplet, CFA, has co-managed Columbia Short Term Bond Fund since November 2000 and has been with the advisor and its predecessors since 1987. /s/ Leonard A. Aplet Richard R. Cutts, CFA, has co-managed the fund since December 2002 and has been with the advisor and its predecessors since 1994. /s/ Richard R. Cutts The fund offers the potential for current income and capital preservation but is subject to interest rate risk, credit risk and prepayment risk. 31 Sidebar: PERFORMANCE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04 ($) SALES CHARGE WITHOUT WITH ----------------------------------- Class A 18,871 17,974 ----------------------------------- Class B 18,681 18,681 ----------------------------------- Class C 18,687 18,687 ----------------------------------- Class D 18,735 18,552 ----------------------------------- Class Z 18,994 n/a Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares may be worth more or less than the original cost. Please visit www.columbiafunds.com for daily and most recent month-end performance updates. PERFORMANCE INFORMATION_________________________________________________________ COLUMBIA FIXED INCOME SECURITIES FUND VALUE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04 (MOUNTAIN CHART) CLASS A CLASS A SHARES SHARES LEHMAN WITHOUT WITH BROTHERS SALES SALES AGGREGATE CHARGE CHARGE BOND INDEX ------ ------ ---------- 03/1994 10000.00 9525.00 10000.00 9764.00 9300.00 9753.00 9685.00 9225.00 9675.00 9677.00 9217.00 9674.00 9661.00 9202.00 9653.00 9832.00 9365.00 9845.00 9840.00 9372.00 9857.00 9700.00 9239.00 9712.00 9679.00 9219.00 9703.00 9656.00 9198.00 9682.00 9731.00 9268.00 9748.00 9917.00 9446.00 9941.00 10143.00 9661.00 10178.00 10212.00 9726.00 10240.00 10362.00 9869.00 10384.00 10775.00 10263.00 10785.00 10861.00 10345.00 10864.00 10833.00 10318.00 10840.00 10970.00 10448.00 10971.00 11089.00 10562.00 11078.00 11234.00 10701.00 11222.00 11406.00 10864.00 11390.00 11570.00 11021.00 11550.00 11641.00 11088.00 11626.00 11426.00 10883.00 11424.00 11350.00 10811.00 11344.00 11263.00 10728.00 11280.00 11238.00 10704.00 11257.00 11397.00 10855.00 11408.00 11415.00 10873.00 11439.00 11406.00 10864.00 11420.00 11611.00 11059.00 11618.00 11857.00 11294.00 11876.00 12077.00 11503.00 12079.00 11962.00 11394.00 11967.00 12010.00 11439.00 12004.00 12047.00 11475.00 12034.00 11919.00 11353.00 11901.00 12094.00 11520.00 12079.00 12207.00 11627.00 12194.00 12347.00 11761.00 12339.00 12687.00 12084.00 12672.00 12574.00 11977.00 12564.00 12755.00 12149.00 12749.00 12949.00 12334.00 12934.00 12988.00 12371.00 12993.00 13106.00 12483.00 13125.00 13263.00 12633.00 13293.00 13252.00 12623.00 13282.00 13283.00 12652.00 13327.00 13352.00 12718.00 13397.00 13484.00 12844.00 13524.00 13593.00 12948.00 13639.00 13614.00 12967.00 13667.00 13836.00 13179.00 13890.00 14099.00 13429.00 14215.00 13975.00 13311.00 14140.00 14033.00 13367.00 14220.00 14082.00 13413.00 14263.00 14182.00 13509.00 14364.00 13910.00 13249.00 14113.00 13999.00 13334.00 14191.00 14045.00 13378.00 14236.00 13878.00 13219.00 14111.00 13817.00 13161.00 14066.00 13724.00 13073.00 14005.00 13697.00 13046.00 13998.00 13866.00 13207.00 14160.00 13904.00 13244.00 14213.00 13921.00 13260.00 14211.00 13867.00 13208.00 14143.00 13785.00 13130.00 14097.00 13926.00 13264.00 14267.00 14102.00 13433.00 14455.00 14053.00 13386.00 14414.00 14042.00 13375.00 14406.00 14346.00 13665.00 14706.00 14448.00 13762.00 14840.00 14668.00 13971.00 15055.00 14771.00 14069.00 15150.00 14852.00 14146.00 15250.00 15122.00 14404.00 15500.00 15429.00 14696.00 15788.00 15702.00 14956.00 16047.00 15839.00 15087.00 16187.00 15924.00 15168.00 16268.00 15824.00 15072.00 16199.00 15930.00 15173.00 16297.00 15976.00 15217.00 16358.00 16342.00 15566.00 16725.00 16499.00 15715.00 16917.00 16672.00 15880.00 17115.00 17009.00 16201.00 17473.00 16796.00 15999.00 17232.00 16684.00 15891.00 17121.00 16786.00 15988.00 17260.00 16922.00 16118.00 17428.00 16683.00 15891.00 17138.00 16992.00 16185.00 17471.00 17121.00 16308.00 17619.00 17184.00 16368.00 17771.00 17349.00 16525.00 17986.00 17646.00 16808.00 18290.00 17903.00 17053.00 18586.00 17696.00 16855.00 18501.00 17676.00 16837.00 18495.00 17945.00 17093.00 18878.00 17967.00 17113.00 18895.00 18216.00 17351.00 19156.00 18203.00 17339.00 19140.00 18340.00 17469.00 19299.00 18633.00 17748.00 19658.00 18574.00 17692.00 19619.00 17981.00 17127.00 18960.00 18095.00 17235.00 19085.00 18554.00 17673.00 19591.00 18391.00 17517.00 19408.00 18382.00 17509.00 19455.00 18551.00 17670.00 19653.00 18694.00 17806.00 19811.00 02/2004 18871.00 17974.00 20029.00 The above illustration assumes a $10,000 investment made on March 1, 1994, and reinvestment of income and capital gains distributions. In addition, the graph and table do not reflect a deduction of the taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 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 or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. AVERAGE ANNUAL TOTAL RETURN AS OF 02/29/04 (%)
SHARE CLASS A B C D Z - ------------------------------------------------------------------------------------------------------------ INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 02/25/83 - ------------------------------------------------------------------------------------------------------------ SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ------------------------------------------------------------------------------------------------------------ 6-month (cumulative) 4.28 -0.71 3.88 -1.12 3.91 2.91 3.97 1.98 4.43 - ------------------------------------------------------------------------------------------------------------ 1-year 3.58 -1.34 2.82 -2.18 2.85 1.85 3.07 1.03 4.11 - ------------------------------------------------------------------------------------------------------------ 5-year 6.29 5.27 6.08 5.76 6.08 6.08 6.14 5.93 6.43 - ------------------------------------------------------------------------------------------------------------ 10-year 6.56 6.04 6.45 6.45 6.45 6.45 6.48 6.38 6.63 - ------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/03 (%)
SHARE CLASS A B C D Z - ------------------------------------------------------------------------------------------------------ SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ------------------------------------------------------------------------------------------------------ 6-month (cumulative) -0.12 -4.89 -0.50 -5.41 -0.46 -1.44 -0.38 -2.36 0.11 - ------------------------------------------------------------------------------------------------------ 1-year 3.38 -1.50 2.61 -2.39 2.65 1.65 2.85 0.81 3.94 - ------------------------------------------------------------------------------------------------------ 5-year 5.67 4.65 5.49 5.16 5.49 5.49 5.54 5.32 5.80 - ------------------------------------------------------------------------------------------------------ 10-year 6.30 5.79 6.21 6.21 6.21 6.21 6.24 6.13 6.37
All results shown assume reinvestment of distributions. The "with sales charge" returns include the maximum 4.75% charge for class A shares and 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%, and thereafter - 0%. Class C has a CDSC of 1% which is applicable for the first year only. Class D has a sales charge of 1% and 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, the 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. The returns for class C include the returns of class B prior to 10/13/2003, the date on which class C was initially offered by the fund. The returns shown for class C also include the performance of class Z prior to the inception of class B (11/01/02). 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, C and D would have been lower. 32 Sidebar: SUMMARY o FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 29, 2004, THE FUND'S CLASS A SHARES RETURNED 4.28% WITHOUT SALES CHARGE. o THE FUND UNDERPERFORMED ITS BENCHMARK, THE LEHMAN BROTHERS AGGREGATE BOND INDEX, AS WELL AS ITS PEER GROUP, THE LIPPER CORPORATE DEBT FUNDS A RATED CATEGORY. o THE FUND'S RELATIVELY CONSERVATIVE POSITIONING HURT ITS RELATIVE RETURN IN A PERIOD WHEN MORE SPECULATIVE SECURITIES OUTPERFORMED. [Illustration of 2 arrows pointing up] LEHMAN BROTHERS AGGREGATE CLASS A SHARES BOND INDEX 4.28% 4.92% OBJECTIVE Seeks long-term capital appreciation TOTAL NET ASSETS $405.5 million NET ASSET VALUE PER SHARE AS OF 02/29/04 ($) Class A 13.65 --------------------------- Class B 13.65 --------------------------- Class C 13.65 --------------------------- Class D 13.65 --------------------------- Class Z 13.65 DISTRIBUTIONS DECLARED PER SHARE 09/01/03 - 02/29/04 ($) Class A 0.26 --------------------------- Class B 0.20 --------------------------- Class C 0.17 --------------------------- Class D 0.22 --------------------------- Class Z 0.28 PORTFOLIO MANAGERS' REPORT______________________________________________________ COLUMBIA FIXED INCOME SECURITIES FUND For the six-month period ended February 29, 2004, Columbia Fixed Income Securities Fund class A shares returned 4.28% without sales charge. By comparison, the Lehman Brothers Aggregate Bond Index and the Lipper Corporate Debt Funds A Rated Category average returned 4.92% and 5.19%, respectively, over the same period.1 We believe the fund trailed its benchmark and peer group primarily because of its relatively conservative positioning: it carried a duration that was slightly shorter than the index while interest rates were falling. And, its average credit quality was higher than the market at a time when lower-rated bonds outperformed higher-rated bonds. Duration is a measure of interest rate sensitivity. We shortened duration as a defensive move. With interest rates at historical lows, we wanted to limit the potential for capital erosion if interest rates rose as well as to provide investors with current income. In fact, interest rates fell during the period, and we gave up some short-term performance because of our decision. However, those results were partially offset by the portfolio's increased exposure to corporate bonds, which outperformed during the period. BONDS PERFORMED WELL EVEN AS THE ECONOMY IMPROVED Most economic indicators were strong throughout the second half of 2003, highlighted by impressive third-quarter GDP growth of 8.2%. Fourth quarter GDP growth of 4.1% was more moderate by comparison, but still indicative of a recovering economy. Although interest rates tend to rise as economic activity picks up, the Federal Reserve Board has maintained a monetary policy aimed at keeping interest rates low. With no great build-up in inflation and a sluggish job market, the Fed left a key short-term interest rate--the fed funds rate--unchanged at just 1.0% throughout the period. Against this backdrop, rates on 5-Year Treasury notes fell by 53 basis points and the 10-year Treasury rate declined by 49 basis points. A basis point is one one-hundredth of a percent. LONGER MATURITIES AND LOWER QUALITY PREVAILED As noted above, declining interest rates favored fixed-income investments with longer maturities, so our relatively short duration modestly decreased performance. The fund also lost some ground because lower-quality securities outperformed the investment grade securities in which the fund exclusively invests. For example, during the period A-rated corporate bonds returned 5.83%, while Baa-rated bonds returned 7.78%--a difference of 1.95 percentage points. We believe that our Baa 1 Lipper Inc., a widely respected data provider in the industry, calculates an average total return for mutual funds with similar investment objectives as the fund. 33 Sidebar: PORTFOLIO QUALITY AS OF 02/29/04 (%) Treasury/Agency 40.8 ------------------------------ Aaa 16.3 ------------------------------ Aa 9.3 ------------------------------ A 14.1 ------------------------------ Baa 12.8 ------------------------------ Ba 3.8 ------------------------------ B 2.8 ------------------------------ Caa 0.1 Portfolio quality is calculated as a percentage of total investments. Ratings shown represent the highest rating assigned to a particular bond by one of the nationally recognized rating agencies: Standard & Poor's Corporation, Moody's Investors Service, Inc. or Fitch Investors Service, Inc. PORTFOLIO COMPOSITION AS OF 02/29/04 (%) Corporate notes & bonds 43.3 ---------------------------------------------- U.S. Government & agency 39.7 ---------------------------------------------- Collateralized mortgage obligations 7.2 ---------------------------------------------- Cash & Cash Equivalents, net receivables & payables 4.9 ---------------------------------------------- Asset-backed securities 4.3 ---------------------------------------------- Commercial mortgage-backed securities 0.6 MATURITY BREAKDOWN AS OF 02/29/04 (%) 0-1 YEARS 20.3 ---------------------------- 1-5 YEARS 45.7 ---------------------------- 5-10 YEARS 21.6 ---------------------------- 10-20 YEARS 4.1 ---------------------------- 20+ YEARS 8.3 Your fund is actively managed and the composition of its portfolio will change over time. Portfolio composition and holdings discussed are calculated as a percentage of net assets. ________________________________________________________________________________ COLUMBIA FIXED INCOME SECURITIES FUND weighting was below that of our peer group. Even at the low-quality end of our holdings, we concentrated on bonds that we believed were candidates for a ratings upgrade rather than the marginal credits whose higher yields were in strong demand during the period. MORTGAGE INVESTMENTS REPOSITIONED We also repositioned the fund's mortgage investments during the period. We shifted away from 30-year conventional pass-through securities in favor of 15-year securities and structured instruments, such as collateralized mortgage obligations (CMOs). This move was designed to defend against changes in mortgage prepayment activity. Mortgage prepayments have been quite high due to low mortgage rates. But if rates rise and the level of prepayments drops, it would hurt the value of conventional mortgage bonds. Separately, we increased our position in corporate bonds from 41% to 43% of the portfolio. As yields on corporate bonds came down during the period, their prices rose, and this move aided overall performance. PREPARING FOR HIGHER INTEREST RATES We expect the economy to continue to expand throughout 2004. At some point we expect this growth to translate into higher interest rates. Although the timing of an upward shift in rates is impossible to pinpoint, the portfolio's shorter-than-average duration makes it well positioned for a rising-rate scenario, and our shift from pass-throughs to CMOs has the potential to provide additional protection. Leonard A. Aplet, CFA, has co-managed Columbia Fixed Income Securities Fund since January 1988 and has been with the advisor and its predecessors since 1987. /s/ Leonard A. Aplet Richard R. Cutts, CFA, has co-managed the fund since December 2002 and has been with the advisor and its predecessors since 1994. /s/ Richard R. Cutts Investing in fixed-income securities offers the potential for attractive current income and total returns but also involves certain risks. The value and return of your investment may fluctuate as a result of changes in interest rates; the financial strength of issuers of lower-rated bonds; foreign, political and economic developments; and changes in currency exchange rates. 34 Sidebar: PERFORMANCE OF A $10,000 INVESTMENT 02/24/99 - 02/29/04 ($) SALES CHARGE WITHOUT WITH ----------------------------------- Class A 13,068 12,446 ----------------------------------- Class B 12,941 12,841 ----------------------------------- Class C 12,954 12,954 ----------------------------------- Class D 12,996 12,867 ----------------------------------- Class Z 13,122 n/a Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares may be worth more or less than the original cost. Please visit www.columbiafunds.com for daily and most recent month-end performance updates. PERFORMANCE INFORMATION_________________________________________________________ COLUMBIA NATIONAL MUNICIPAL BOND FUND VALUE OF A $10,000 INVESTMENT 02/24/99 - 02/29/04 (MOUNTAIN CHART) CLASS A CLASS A SHARES SHARES LEHMAN WITHOUT WITH BROTHERS SALES SALES MUNICIPAL CHARGE CHARGE BOND INDEX ------ ------ ---------- 02/1999 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 12625.00 12302.00 11717.00 12996.00 12694.00 12091.00 12931.00 12585.00 11987.00 13065.00 12694.00 12091.00 13174.00 12803.00 12195.00 13249.00 12851.00 12240.00 13450.00 02/2004 13068.00 12446.00 The above illustration assumes a $10,000 investment made on February 24, 1999, and reinvestment of income and capital gains distributions. In addition, the graph and table do not reflect a deduction of the taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The Lehman Brothers Municipal Bond Index is an unmanaged index that tracks the performance of the municipal bond market. 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 February 28, 1999. AVERAGE ANNUAL TOTAL RETURN AS OF 02/29/04 (%)
SHARE CLASS A B C D Z - --------------------------------------------------------------------------------------------------------------- INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 02/24/99 - --------------------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - --------------------------------------------------------------------------------------------------------------- 6-month (cumulative) 6.28 1.23 5.89 0.89 6.00 5.00 6.07 4.04 6.41 - --------------------------------------------------------------------------------------------------------------- 1-year 6.04 1.00 5.26 0.26 5.37 4.37 5.62 3.61 6.38 - --------------------------------------------------------------------------------------------------------------- 5-year 5.64 4.60 5.43 5.10 5.45 5.45 5.52 5.31 5.72 - --------------------------------------------------------------------------------------------------------------- Life 5.49 4.46 5.28 5.12 5.30 5.30 5.37 5.16 5.57
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/03 (%)
SHARE CLASS A B C D Z - ----------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ----------------------------------------------------------------------------------------------------- 6-month (cumulative) 1.09 -3.71 0.71 -4.21 0.80 -0.19 0.87 -1.15 1.19 - ----------------------------------------------------------------------------------------------------- 1-year 4.86 -0.12 4.09 -0.91 4.17 3.17 4.43 2.44 5.21 - ----------------------------------------------------------------------------------------------------- Life 5.22 4.17 5.03 4.69 5.05 5.05 5.11 4.90 5.30
All results shown assume reinvestment of distributions. 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%, and thereafter - 0%. Class C has a CDSC of 1% which is applicable for the first year only. Class D has a sales charge of 1% and 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, the 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. The returns for class C include the returns of class B prior to 10/13/03, the date on which class C was initially offered by the fund. The returns shown for class C also include the performance of class Z prior to the inception of class B (11/01/02). 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, C, and D would have been lower. 35 Sidebar: SUMMARY o FOR THE SIX-MONTH PERIOD THAT ENDED FEBRUARY 29, 2004, THE FUND'S CLASS A SHARES RETURNED 6.28% WITHOUT SALES CHARGE. o THE FUND'S RETURN WAS SLIGHTLY LESS THAN THE RETURN FOR ITS BENCHMARK, THE LEHMAN BROTHERS MUNICIPAL BOND INDEX, AND THE AVERAGE FOR ITS PEER GROUP, THE LIPPER GENERAL MUNICIPAL DEBT FUNDS CATEGORY. o ALTHOUGH THE FUND'S FOCUS ON MUNICIPAL BONDS WITH LONGER INTERMEDIATE MATURITIES HELPED GENERATE A STRONG ABSOLUTE RETURN, WE BELIEVE THAT ITS SHORTER DURATION OVERALL ACCOUNTED FOR A SLIGHT SHORTFALL RELATIVE TO ITS BENCHMARK AND PEER GROUP. THE FUND'S INVESTMENTS IN NON-RATED BONDS ALSO AIDED ITS RETURN. [Illustration of 2 arrows pointing up] LEHMAN BROTHERS MUNICIPAL BOND CLASS A SHARES INDEX 6.28% 6.52% OBJECTIVE Seeks a high level of income exempt from federal income tax TOTAL NET ASSETS $16.1 million NET ASSET VALUE PER SHARE AS OF 02/29/04 ($) Class A 10.48 --------------------------- Class B 10.48 --------------------------- Class C 10.48 --------------------------- Class D 10.48 --------------------------- Class Z 10.48 DISTRIBUTIONS DECLARED PER SHARE 09/01/03 - 02/29/04 ($) Class A 0.26 --------------------------- Class B 0.22 --------------------------- Class C 0.20 --------------------------- Class D 0.24 --------------------------- Class Z 0.27 PORTFOLIO MANAGER'S REPORT______________________________________________________ COLUMBIA NATIONAL MUNICIPAL BOND FUND For the six-month period ended February 29, 2004, Columbia National Municipal Bond Fund class A shares returned 6.28% without sales charge. It fell just short of the return on its benchmark, the Lehman Brothers Municipal Bond Index, which was 6.52% over the same period. The fund also trailed the average return of the Lipper General Municipal Debt Funds Category, which was 6.44%.1 Our focus on municipal bonds with intermediate maturities at the longer end of the range as well as non-rated bonds helped the fund's return. A slightly shorter duration [see sidebar on next page] overall modestly hampered relative returns as interest rates trended down. MORE FAVORABLE ENVIRONMENT FOR MUNICIPAL BONDS After a period of volatile performance in the summer of 2003, municipal bonds rebounded during the six months covered by this report. Although economic growth was strong, inflation remained in check because of weak job growth and excess capacity in the manufacturing sector. With little likelihood of a near-term rise in interest rates, bond yields drifted lower and bond prices moved higher. The combination of sluggish job growth and federal tax cuts lowered revenues to state and local governments, leading to heavier-than-usual issuance of municipal bonds in 2003. Demand for muni bonds remained strong, although added supply put pressure on the prices of existing bonds. FOCUS ON LONGER BONDS AND INCREASED GEOGRAPHIC DIVERSIFICATION The fund continued to concentrate on high-quality issues diversified nationally across both states and sectors. We focused on muni bonds with maturities between 10 and 20 years. This structure benefited performance, as interest rates for longer maturity bonds dropped more than those for shorter maturity munis. Since bond prices tend to move up as interest rates move down, prices on longer maturity bonds did better than those on shorter maturity bonds. The fund's non-rated muni bonds did well in an environment where investors were willing to take on more risk for higher returns. We trimmed some of our non-rated holdings and shifted the proceeds into higher-quality bonds that helped increase the fund's geographic diversification. As part of our diversification effort, we also reduced the fund's exposure to Oregon and Illinois bonds from approximately 27% to 22% of net assets. 1 Lipper Inc., a widely respected data provider in the industry, calculates an average total return for mutual funds with similar investment objectives as the fund. 36 Sidebar: PORTFOLIO QUALITY AS OF 02/29/04 (%) Aaa 60.1 -------------------------------- Aa 16.8 -------------------------------- A 5.8 -------------------------------- BBB 1.0 -------------------------------- Non Rated 12.2 -------------------------------- Net Cash & equivalents 4.1 Ratings shown represent the highest rating assigned to a particular bond by one of the nationally-recognized rating agencies: Standard and Poor's Corporation, Moody's Investors Service, Inc. or Fitch Investors Service, Inc. TOP 10 STATES AS OF 02/29/04 (%) Washington 13.8 -------------------------------- Oregon 11.1 -------------------------------- Illinois 10.7 -------------------------------- Michigan 5.9 -------------------------------- Indiana 5.2 -------------------------------- Texas 4.5 -------------------------------- Tennessee 4.1 -------------------------------- New York 3.6 -------------------------------- Wisconsin 3.4 -------------------------------- Alaska 3.1 Your fund is actively managed and the composition of its portfolio will change over time. Portfolio composition and holdings discussed are calculated as a percentage of net assets. MATURITY BREAKDOWN AS OF 02/29/04 (%) 0-1 YEARS 1.1 -------------------------------- 1-3 YEARS 1.7 -------------------------------- 3-5 YEARS 3.2 -------------------------------- 5-7 YEARS 5.5 -------------------------------- 7-10 YEARS 23.6 -------------------------------- 10-15 YEARS 50.2 -------------------------------- 15-20 YEARS 8.9 -------------------------------- 20-25 YEARS 1.7 -------------------------------- Net cash & equivalents 4.1 Portfolio quality and maturity breakdown are calculated as a percentage of total investments including short-term obligations. ABOUT DURATION Duration is a measure, expressed in years, of interest-rate sensitivity. It is similar to maturity, but because it takes into consideration the entire stream of future principal and interest payments and how long it will take to collect them, it is a more complex and more accurate measure of a fund's exposure to changing interest rates. Because we are active duration managers, we tend to use duration as a tactical tool to anticipate or respond to interest rate changes. Because bond prices and interest rates move in opposite directions, we lower duration when we expect interest rates to rise and we raise duration when we expect interest rates to fall. This adjustment provides the potential to benefit performance. If we are wrong and interest rates rise after we lengthen duration, or fall after we shorten duration, fund performance could be hurt. ________________________________________________________________________________ COLUMBIA NATIONAL MUNICIPAL BOND FUND POTENTIAL FOR IMPROVING MUNICIPAL BOND ENVIRONMENT Our outlook is for a more stable environment in the municipal bond market for the period ahead. Low mortgage rates and steady real estate prices should continue to support the housing market and consumer spending despite weak job growth. If economic growth remains solid, state and local governments can expect tax revenues to move higher. This, in turn, would aid balance sheets and slow credit downgrades. With less financial pressure, states and local governments would also be able to reduce issuance, creating a better environment for existing bonds. The presidential election is a wildcard, as the candidates' tax policies would likely have different effects on state and local revenues and the creation of additional investments with tax incentives. Going forward, we plan to focus the fund on the longer end of the intermediate maturity range, targeting issues with 8- to 20-year maturities. We think this part of the market represents the best return opportunities in an environment with the potential for volatile or rising interest rates. We also intend to reduce the fund's already small position in bonds that are subject to the alternative minimum tax. Susan Sanderson has managed Columbia National Municipal Bond Fund since December 2003 and has been with the advisor and its predecessors since 1985. /s/ Susan Sanderson Tax-exempt investing offers current tax-free income, but it also involves certain risks. The value of the fund shares will be affected by interest rate changes and the creditworthiness of issues held in the funds. Interest income from certain tax-exempt bonds may be subject to the federal alternative minimum tax for individuals and corporations. 37 Sidebar: PERFORMANCE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04 ($) SALES CHARGE WITHOUT WITH ----------------------------------- Class A 17,195 16,378 ----------------------------------- Class B 17,027 17,027 ----------------------------------- Class C 17,046 17,046 ----------------------------------- Class D 17,112 16,935 ----------------------------------- Class Z 17,288 n/a Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares may be worth more or less than the original cost. Please visit www.columbiafunds.com for daily and most recent month-end performance updates. PERFORMANCE INFORMATION_________________________________________________________ COLUMBIA OREGON MUNICIPAL BOND FUND VALUE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04 (MOUNTAIN CHART) CLASS A CLASS A LEHMAN SHARES SHARES BROTHERS WITHOUT WITH GENERAL SALES SALES OBLIGATION CHARGE CHARGE BOND INDEX ------ ------ ---------- 03/1994 10000.00 9525.00 10000.00 9642.00 9184.00 9632.00 9693.00 9233.00 9736.00 9762.00 9298.00 9811.00 9715.00 9254.00 9752.00 9858.00 9390.00 9905.00 9894.00 9424.00 9948.00 9764.00 9300.00 9809.00 9643.00 9185.00 9667.00 9486.00 9036.00 9516.00 9675.00 9216.00 9684.00 9907.00 9437.00 9913.00 10127.00 9646.00 10175.00 10234.00 9748.00 10314.00 10245.00 9758.00 10320.00 10497.00 9998.00 10628.00 10413.00 9918.00 10556.00 10503.00 10004.00 10678.00 10636.00 10131.00 10814.00 10707.00 10199.00 10883.00 10833.00 10318.00 11007.00 10983.00 10461.00 11163.00 11047.00 10522.00 11251.00 11111.00 10583.00 11360.00 11055.00 10530.00 11308.00 10939.00 10420.00 11182.00 10894.00 10377.00 11143.00 10887.00 10370.00 11125.00 10996.00 10473.00 11238.00 11088.00 10561.00 11343.00 11089.00 10562.00 11342.00 11218.00 10685.00 11480.00 11330.00 10792.00 11614.00 11507.00 10960.00 11830.00 11461.00 10916.00 11782.00 11490.00 10945.00 11814.00 11582.00 11032.00 11922.00 11460.00 10915.00 11768.00 11535.00 10987.00 11860.00 11670.00 11116.00 12036.00 11775.00 11216.00 12166.00 12075.00 11502.00 12481.00 11998.00 11428.00 12372.00 12124.00 11548.00 12513.00 12184.00 11605.00 12581.00 12241.00 11659.00 12642.00 12418.00 11828.00 12821.00 12538.00 11942.00 12953.00 12522.00 11928.00 12964.00 12512.00 11918.00 12975.00 12470.00 11878.00 12907.00 12651.00 12050.00 13120.00 12679.00 12076.00 13167.00 12708.00 12104.00 13197.00 12900.00 12287.00 13406.00 13060.00 12439.00 13584.00 13037.00 12418.00 13587.00 13076.00 12455.00 13631.00 13110.00 12488.00 13676.00 13276.00 12645.00 13856.00 13173.00 12548.00 13785.00 13181.00 12555.00 13790.00 13220.00 12592.00 13828.00 13099.00 12477.00 13750.00 12913.00 12300.00 13548.00 12964.00 12348.00 13601.00 12852.00 12242.00 13521.00 12859.00 12248.00 13533.00 12726.00 12122.00 13417.00 12853.00 12243.00 13553.00 12762.00 12156.00 13468.00 12683.00 12081.00 13418.00 12790.00 12182.00 13552.00 13056.00 12435.00 13826.00 12985.00 12368.00 13756.00 12905.00 12292.00 13683.00 13217.00 12589.00 14036.00 13397.00 12760.00 14221.00 13600.00 12954.00 14424.00 13528.00 12886.00 14352.00 13676.00 13026.00 14503.00 13765.00 13111.00 14604.00 14073.00 13404.00 14949.00 14233.00 13557.00 15111.00 14273.00 13595.00 15156.00 14389.00 13705.00 15289.00 14233.00 13557.00 15132.00 14386.00 13702.00 15285.00 14476.00 13789.00 15379.00 14676.00 13979.00 15598.00 14912.00 14204.00 15849.00 14872.00 14166.00 15814.00 15061.00 14346.00 15977.00 14888.00 14181.00 15836.00 14712.00 14013.00 15710.00 14952.00 14242.00 15967.00 15127.00 14408.00 16162.00 14855.00 14149.00 15853.00 15146.00 14426.00 16180.00 15241.00 14517.00 16269.00 15421.00 14688.00 16451.00 15628.00 14885.00 16653.00 15812.00 15061.00 16843.00 16158.00 15391.00 17185.00 15863.00 15109.00 16907.00 15742.00 14994.00 16824.00 16052.00 15290.00 17154.00 15990.00 15230.00 17125.00 16237.00 15466.00 17361.00 16224.00 15454.00 17394.00 16338.00 15562.00 17505.00 16725.00 15931.00 17892.00 16633.00 15843.00 17806.00 16039.00 15277.00 17215.00 16144.00 15377.00 17375.00 16630.00 15840.00 17872.00 16508.00 15724.00 17752.00 16681.00 15889.00 17898.00 16818.00 16019.00 18025.00 16882.00 16080.00 18115.00 02/2004 17195.00 16378.00 18395.00 The above illustration assumes a $10,000 investment made on March 1, 1994 and reinvestment of income and capital gains distributions. In addition, the graph and table do not reflect a deduction of the taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 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 or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index. AVERAGE ANNUAL TOTAL RETURN AS OF 02/29/04 (%)
SHARE CLASS A B C D Z - --------------------------------------------------------------------------------------------------------------- INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 07/02/84 - --------------------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - --------------------------------------------------------------------------------------------------------------- 6-month (cumulative) 6.49 1.43 6.09 1.09 6.21 5.21 6.28 4.23 6.65 - --------------------------------------------------------------------------------------------------------------- 1-year 5.87 0.84 5.06 0.06 5.18 4.18 5.48 3.44 6.26 - --------------------------------------------------------------------------------------------------------------- 5-year 5.47 4.45 5.27 4.94 5.29 5.29 5.37 5.15 5.59 - --------------------------------------------------------------------------------------------------------------- 10-year 5.57 5.06 5.47 5.47 5.48 5.48 5.52 5.41 5.63
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/03 (%)
SHARE CLASS A B C D Z - ------------------------------------------------------------------------------------------------------ SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ------------------------------------------------------------------------------------------------------ 6-month (cumulative) 1.11 -3.70 0.71 -4.19 0.79 -0.19 0.91 -1.07 1.29 - ------------------------------------------------------------------------------------------------------ 1-year 4.76 -0.21 3.96 -1.02 4.05 3.05 4.38 2.35 5.16 - ------------------------------------------------------------------------------------------------------ 5-year 5.11 4.10 4.93 4.60 4.95 4.95 5.02 4.81 5.22 - ------------------------------------------------------------------------------------------------------ 10-year 5.18 4.67 5.09 5.09 5.10 5.10 5.14 5.03 5.23
All results shown assume reinvestment of distributions. 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%, and thereafter - 0%. Class C has a CDSC of 1% which is applicable for the first year only. Class D has a sales charge of 1% and 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, the 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. The returns for class C include the returns of class B prior to 10/13/03, the date on which class C was initially offered by the fund. The returns shown for class C also include the performance of class Z prior to the inception of class B (11/01/02). 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, C, and D would have been lower. 38 Sidebar: SUMMARY o FOR THE SIX-MONTH PERIOD THAT ENDED FEBRUARY 29, 2004, THE FUND'S CLASS A SHARES RETURNED 6.49% WITHOUT SALES CHARGE. o THE FUND'S RETURN WAS HIGHER THAN ITS BENCHMARK, THE LEHMAN BROTHERS GENERAL OBLIGATION BOND INDEX, AND THE AVERAGE RETURN FOR ITS PEER GROUP, THE LIPPER OREGON MUNICIPAL DEBT FUNDS CATEGORY. o THE FUND'S STRONG PERFORMANCE WAS THE RESULT OF OUR CONCENTRATION ON MUNICIPAL BONDS WITH INTERMEDIATE MATURITIES, WHICH DID BETTER THAN BONDS WITH EITHER LONG OR SHORT MATURITIES. [Illustration of 2 arrows pointing up] LEHMAN BROTHERS GENERAL OBLIGATION CLASS A SHARES BOND INDEX 6.49% 5.90% OBJECTIVE Seeks a high level of income exempt from federal and Oregon income tax TOTAL NET ASSETS $486.4 million NET ASSET VALUE PER SHARE AS OF 02/29/04 ($) Class A 12.66 --------------------------- Class B 12.66 --------------------------- Class C 12.66 --------------------------- Class D 12.66 --------------------------- Class Z 12.66 DISTRIBUTIONS DECLARED PER SHARE 09/01/03 - 02/29/04 ($) Class A 0.38 --------------------------- Class B 0.33 --------------------------- Class C 0.30 --------------------------- Class D 0.35 --------------------------- Class Z 0.40 PORTFOLIO MANAGER'S REPORT______________________________________________________ COLUMBIA OREGON MUNICIPAL BOND FUND For the six-month period ended February 29, 2004, Columbia Oregon Municipal Bond Fund class A shares returned 6.49% without sales charge. This was higher than the fund's benchmark, the Lehman Brothers General Obligation Bond Index, which returned 5.90%. The fund also beat its peer group, the Lipper Oregon Municipal Debt Funds Category, which returned an average of 5.73%.1 The fund's strong performance resulted from its focus on bonds with intermediate maturities, which did better than bonds with either long or short maturities over the period. A FAVORABLE ENVIRONMENT FOR MUNICIPAL BONDS After a period of volatile performance in the summer of 2003, municipal bonds rebounded during the six months covered by this report. Although economic growth was strong, inflation remained in check because of weak job growth and excess capacity in the manufacturing sector. With little likelihood of a near-term rise in interest rates, bond yields drifted lower and bond prices moved higher. The combination of sluggish job growth and federal tax cuts lowered revenues to state and local governments, leading to heavier-than-usual issuance of municipal bonds nationwide. In Oregon, 2003 muni bond issuance was 60% higher than the previous year. Oregon's economy, which relied heavily on the technology industry in the `90s, remained slightly behind the rest of the country, with higher unemployment and continued budget shortfalls. A recent ballot initiative to cover part of the budget deficit failed, forcing the state to make cuts to balance its 2004-2005 budget and weakening its credit position. During the period, yields on bonds with intermediate maturities dropped more than bonds with short or long maturities. The fund's concentration in the intermediate part of the market benefited performance, as prices on intermediate maturity issues appreciated more than longer or shorter maturity issues. The fund also benefited from its investments in hospital and non-rated bonds. Hospital bonds performed well, as the financial outlook improved for many issuers. The fund's non-rated bonds did well as investors became more willing to take on added risk for higher returns. Certain securities detracted from performance. Multi-family housing bonds hurt performance as low mortgage rates favored individual home ownership over rental housing, which made it difficult for issuers to maintain occupancy levels. In addition, a decline in tourism over the last few years led to cash flow shortfalls at the Oregon Coast Aquarium. We continue to work with the Aquarium to resolve these issues or seek alternatives to enhance the value of the outstanding bonds. 1 Lipper Inc., a widely respected data provider in the industry, calculates an average total return for mutual funds with similar investment objectives as the fund. 39 Sidebar: PORTFOLIO QUALITY AS OF 02/29/04 (%) AAA 39.8 -------------------------------- AA 36.9 -------------------------------- A 7.1 -------------------------------- BBB 4.3 -------------------------------- Non rated 10.0 -------------------------------- Net cash & equivalents 1.9 Ratings shown represent the highest rating assigned to a particular bond by one of the nationally-recognized rating agencies: Standard and Poor's Corporation, Moody's Investors Service, Inc. or Fitch Investors Service, Inc. PORTFOLIO COMPOSITION AS OF 02/29/04 (%) Revenue 34.0 ---------------------------------------------- Insured revenue 20.8 ---------------------------------------------- General obligations 17.8 ---------------------------------------------- Insured general obligations 13.5 ---------------------------------------------- Other bonds 6.2 ---------------------------------------------- State of Oregon general obligations 4.4 ---------------------------------------------- CASH & cash equivalents, net receivables & payables 2.3 ---------------------------------------------- PRE-refunded bond 0.8 ---------------------------------------------- U.S. territories bonds 0.2 HOLDINGS DISCUSSED IN THIS REPORT AS OF 02/29/04 (%) OREGON COAST AQUARIUM (OREGON ST HEALTH HSG EDL) 0.1 MATURITY BREAKDOWN AS OF 02/29/04 (%) 0-3 Years 1.4 -------------------------------- 3-5 Years 2.0 -------------------------------- 5-7 Years 8.6 -------------------------------- 7-10 Years 23.1 -------------------------------- 10-15 Years 38.9 -------------------------------- 15-20 Years 13.5 -------------------------------- 20-25 Years 4.5 -------------------------------- 25+ Years 6.1 -------------------------------- Net Cash & Equivalents 1.9 Portfolio quality and maturity breakdown are calculated as a percentage of total investments including short-term obligations. Your fund is actively managed and the composition of its portfolio will change over time. Portfolio composition and holdings discussed are calculated as a percentage of net assets. ________________________________________________________________________________ COLUMBIA OREGON MUNICIPAL BOND FUND POTENTIAL FOR GRADUALLY IMPROVING ENVIRONMENT Our outlook calls for increased stability in the municipal bond market. Despite high unemployment, low mortgage rates and steady real estate prices have helped housing prices and consumer spending remain strong. If economic growth remains solid, state and local governments can expect tax revenues to move higher. This, in turn, would aid balance sheets and slow credit downgrades. With less financial pressure, states and local governments would also be able to reduce issuance, creating a better environment for existing bonds. In Oregon specifically, we believe revenue streams are slowly starting to pick up. Near term the state may continue to have budget problems, which would affect credit ratings. However, we expect Oregon's municipal market to benefit from a healthy, although lower, level of issuance and continued strong demand. We expect to focus on the longer end of the intermediate maturity range, which we think offers the best opportunity in a gradually improving environment. In an effort to enhance tax-free returns to shareholders, we intend to reduce the fund's exposure to bonds that are subject to the alternative minimum tax. Our goal is also to de-emphasize exposure to the multi-family housing sector and pare back on non-rated bonds. We expect to invest the proceeds in high-quality essential services bonds, including water, sewer and school bonds. Photo of: Brian Mcgreevy Brian McGreevy has managed the Columbia Oregon Municipal Bond Fund since December 2003 and has been with the advisor and its predecessors since 1994. /s/ Brian McGreevy Tax-exempt investing offers current tax-free income, but it also involves certain risks. The value of the fund shares will be affected by interest rate changes and the creditworthiness of issues held in the funds. Single-state municipal bond funds pose additional risks due to limited geographical diversification. Interest income from certain tax-exempt bonds may be subject to the federal alternative minimum tax for individuals and corporations. 40 Sidebar: PERFORMANCE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04 ($) SALES CHARGE WITHOUT WITH ----------------------------------- Class A 19,903 18,966 ----------------------------------- Class B 19,681 19,681 ----------------------------------- Class C 19,675 19,675 ----------------------------------- Class D 19,729 19,532 ----------------------------------- Class Z 19,983 n/a Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares may be worth more or less than the original cost. Please visit www.columbiafunds.com for daily and most recent month-end performance updates. PERFORMANCE INFORMATION_________________________________________________________ COLUMBIA HIGH YIELD FUND VALUE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04 (MOUNTAIN CHART) CLASS A CLASS A MERRILL SHARES SHARES LYNCH US WITHOUT WITH HIGH YIELD, SALES SALES CASH PAY CHARGE CHARGE ONLY INDEX ------ ------ ---------- 03/1994 10000.00 9525.00 10000.00 9695.00 9234.00 9674.00 9527.00 9075.00 9561.00 9606.00 9150.00 9526.00 9632.00 9175.00 9562.00 9691.00 9231.00 9629.00 9752.00 9289.00 9695.00 9801.00 9335.00 9691.00 9812.00 9346.00 9715.00 9703.00 9242.00 9633.00 9803.00 9337.00 9740.00 9956.00 9483.00 9877.00 10201.00 9716.00 10185.00 10293.00 9804.00 10327.00 10524.00 10024.00 10568.00 10790.00 10278.00 10898.00 10865.00 10349.00 10981.00 11015.00 10491.00 11106.00 11034.00 10510.00 11174.00 11213.00 10680.00 11301.00 11361.00 10821.00 11382.00 11491.00 10945.00 11493.00 11676.00 11121.00 11678.00 11838.00 11276.00 11863.00 11877.00 11313.00 11880.00 11743.00 11185.00 11848.00 11726.00 11169.00 11854.00 11737.00 11179.00 11940.00 11770.00 11211.00 12011.00 11857.00 11294.00 12093.00 12082.00 11508.00 12217.00 12291.00 11707.00 12480.00 12426.00 11836.00 12617.00 12687.00 12085.00 12872.00 12777.00 12170.00 12971.00 12890.00 12278.00 13071.00 13086.00 12464.00 13254.00 12888.00 12276.00 13107.00 13040.00 12421.00 13257.00 13353.00 12719.00 13524.00 13521.00 12879.00 13730.00 13885.00 13226.00 14059.00 13873.00 13214.00 14036.00 14059.00 13391.00 14269.00 14046.00 13379.00 14363.00 14206.00 13531.00 14499.00 14399.00 13715.00 14637.00 14634.00 13939.00 14855.00 14720.00 14021.00 14916.00 14812.00 14108.00 15044.00 14886.00 14179.00 15115.00 14932.00 14223.00 15221.00 15038.00 14324.00 15297.00 15221.00 14498.00 15384.00 14617.00 13923.00 14719.00 14876.00 14169.00 14749.00 14804.00 14101.00 14507.00 15293.00 14566.00 15167.00 15297.00 14571.00 15172.00 15486.00 14750.00 15322.00 15400.00 14669.00 15205.00 15584.00 14843.00 15336.00 15694.00 14949.00 15575.00 15492.00 14756.00 15468.00 15444.00 14710.00 15439.00 15428.00 14696.00 15462.00 15342.00 14613.00 15304.00 15325.00 14597.00 15246.00 15328.00 14600.00 15156.00 15578.00 14838.00 15329.00 15661.00 14917.00 15408.00 15581.00 14841.00 15331.00 15595.00 14854.00 15345.00 15506.00 14769.00 15130.00 15577.00 14837.00 15135.00 15568.00 14828.00 14968.00 15895.00 15140.00 15224.00 16038.00 15276.00 15334.00 16309.00 15534.00 15521.00 16309.00 15534.00 15431.00 16172.00 15404.00 14979.00 15941.00 15183.00 14510.00 16382.00 15604.00 14825.00 16944.00 16139.00 15708.00 17086.00 16275.00 15957.00 16998.00 16190.00 15746.00 16957.00 16151.00 15574.00 17067.00 16256.00 15873.00 16917.00 16113.00 15546.00 17121.00 16308.00 15787.00 17344.00 16520.00 15940.00 16666.00 15874.00 14919.00 17238.00 16419.00 15357.00 17689.00 16849.00 15856.00 17470.00 16640.00 15744.00 17575.00 16740.00 15832.00 17415.00 16588.00 15680.00 17578.00 16743.00 16053.00 17661.00 16822.00 16308.00 17626.00 16788.00 16220.00 17178.00 16362.00 15067.00 16893.00 16090.00 14467.00 17155.00 16340.00 14829.00 17088.00 16276.00 14592.00 17066.00 16255.00 14469.00 17547.00 16713.00 15332.00 17663.00 16824.00 15565.00 17816.00 16970.00 16013.00 17957.00 17104.00 16220.00 18266.00 17398.00 16640.00 18681.00 17793.00 17575.00 18696.00 17807.00 17765.00 18924.00 18025.00 18250.00 18564.00 17682.00 17989.00 18688.00 17801.00 18224.00 19094.00 18187.00 18711.00 19308.00 18391.00 19093.00 19426.00 18503.00 19356.00 19635.00 18703.00 19805.00 19824.00 18882.00 20114.00 02/2004 19903.00 18966.00 20108.00 The above illustration assumes a $10,000 investment made on March 1, 1994, and reinvestment of income and capital gains distributions. In addition, the graph and table do not reflect a deduction of the taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The Merrill Lynch US 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. AVERAGE ANNUAL TOTAL RETURN AS OF 02/29/04 (%)
SHARE CLASS A B C D Z - --------------------------------------------------------------------------------------------------------------- INCEPTION 11/01/02 11/01/02 10/13/03 11/01/02 10/01/93 - --------------------------------------------------------------------------------------------------------------- SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - --------------------------------------------------------------------------------------------------------------- 6-month (cumulative) 6.48 1.46 6.06 1.06 6.03 5.03 6.15 4.05 6.60 - --------------------------------------------------------------------------------------------------------------- 1-year 10.81 5.55 9.89 4.89 9.85 8.85 10.11 7.96 11.10 - --------------------------------------------------------------------------------------------------------------- 5-year 5.26 4.23 5.02 4.72 5.01 5.01 5.07 4.86 5.34 - --------------------------------------------------------------------------------------------------------------- 10-year 7.13 6.61 7.01 7.01 7.00 7.00 7.03 6.92 7.17
AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/03 (%)
SHARE CLASS A B C D Z - ------------------------------------------------------------------------------------------------------ SALES CHARGE WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT WITH WITHOUT - ------------------------------------------------------------------------------------------------------ 6-month (cumulative) 3.75 -1.14 3.32 -1.68 3.28 2.28 3.42 1.37 3.87 - ------------------------------------------------------------------------------------------------------ 1-year 11.16 5.85 10.23 5.23 10.19 9.19 10.45 8.42 11.49 - ------------------------------------------------------------------------------------------------------ 5-year 5.12 4.10 4.91 4.61 4.90 4.90 4.95 4.74 5.19 - ------------------------------------------------------------------------------------------------------ 10-year 7.10 6.57 6.99 6.99 6.99 6.99 7.01 6.91 7.14
All results shown assume reinvestment of distributions. The "with sales charge" returns include the maximum 4.75% charge for class A shares and 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%, and thereafter - 0%. Class C has a CDSC of 1% which is applicable for the first year only. Class D has a sales charge of 1% and 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, the 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. The returns for Class C include the returns of Class B prior to 10/13/2003, the date on which class C was initially offered by the fund. The returns shown for Class C also include the performance of Class Z prior to the inception of Class B (11/01/02). 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, C and D would have been lower. 41 Sidebar: SUMMARY o FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 29, 2004, THE FUND'S CLASS A SHARES RETURNED 6.48% WITHOUT SALES CHARGE. o THE FUND'S RETURN WAS LESS THAN ITS BENCHMARK, THE MERRILL LYNCH US HIGH YIELD, CASH PAY ONLY INDEX. o THE FUND TRAILED ITS BENCHMARK PRIMARILY BECAUSE OF ITS RELATIVELY CONSERVATIVE POSITIONING IN A PERIOD WHEN MORE SPECULATIVE SECURITIES OUTPERFORMED. [Illustration of 2 arrows pointing up] MERRILL LYNCH US HIGH YIELD, CASH CLASS A SHARES PAY ONLY INDEX 6.48% 10.32% OBJECTIVE Seeks a high level of income with capital appreciation as a secondary goal TOTAL NET ASSETS $1,878.0 million NET ASSET VALUE PER SHARE AS OF 02/29/04 ($) Class A 8.77 -------------------------- Class B 8.77 -------------------------- Class C 8.77 -------------------------- Class D 8.77 -------------------------- Class Z 8.77 DISTRIBUTIONS DECLARED PER SHARE 09/01/03 - 02/29/04 ($) Class A 0.26 -------------------------- Class B 0.23 -------------------------- Class C 0.18 -------------------------- Class D 0.24 -------------------------- Class Z 0.27 PORTFOLIO MANAGER'S REPORT______________________________________________________ COLUMBIA HIGH YIELD FUND For the six-month period ended February 29, 2004, Columbia High Yield Fund class A shares returned 6.48% without sales charge. The fund lagged the Merrill Lynch US High Yield, Cash Pay Only Index, which returned 10.32%. The fund's relative performance was hurt by its emphasis on the higher-quality segment of the high-yield marketplace. The fund generally holds no Caa-rated bonds, which constitute approximately 15% of the index. These ultra low-quality bonds have outperformed B- and Ba-rated bonds for more than a year. The fund suffered from its underweight in industries that are dominated by companies with Caa ratings--specifically, electric utilities, telecom and airlines. The fund's performance was also held back by its overweight positions in health care and gaming, two sectors that lagged the overall market. LOWER QUALITY BONDS PREVAILED The market's preference for lower-rated securities during the period can be traced to several factors. Early in the period, lower-quality bonds enjoyed a substantial yield advantage. As yield-hungry investors poured money into lower quality bonds, companies were able to refinance their debt on advantageous terms and bankruptcy rates began to decline from record levels. Finally, the emergence of a genuine economic recovery in the third quarter of 2003 gave investors hope that many struggling companies would be able to improve their competitive positions. Yet, the overall credit quality of the high-yield market actually declined as measured by the rating agencies (S&P and Moody's) because many more companies were downgraded than upgraded. REDUCED CABLE EXPOSURE AND ADDED TO SATELLITE TELEVISION PROVIDERS The composition of the fund was relatively unchanged during the period. However, we reduced our commitment to the cable sector by selling our positions in Cablevision and Mediacom, which, in our judgment, no longer represented good values. From an operating perspective, we have been concerned that cable as a group has been losing market share to satellite TV, especially in rural markets. In an effort to participate in this trend, we purchased bonds of satellite dish company, Echostar DBS to supplement our existing position in DirecTV Holdings. 42 Sidebar: PORTFOLIO QUALITY AS OF 02/29/04 (%) Baa 4.1 --------------------------- Ba 54.4 --------------------------- B 38.9 --------------------------- Caa 2.6 Portfolio quality is calculated as a percentage of total investments. Ratings shown represent the highest rating assigned to a particular bond by one of the nationally recognized rating agencies: Standard and Poor's Corporation, Moody's Investors Service, Inc. or Fitch Investors Service, Inc. TOP 5 SECTORS AS OF 02/29/04 (%) Energy 10.3 --------------------------- Health care 9.4 --------------------------- Casinos & gaming 7.4 --------------------------- Cable TV 5.5 --------------------------- Services 4.9 HOLDINGS DISCUSSED IN THIS REPORT AS OF 02/29/04 (%) Echostar DBS 1.8 --------------------------- DirecTV Holdings 1.4 MATURITY BREAKDOWN AS OF 02/29/04 (%) 0-3 Years 6.5 --------------------------- 3-5 Years 14.7 --------------------------- 5-10 Years 76.3 --------------------------- 10+ Years 2.5 Your fund is actively managed and the composition of its portfolio will change over time. Portfolio composition and holdings discussed are calculated as a percentage of net assets. ________________________________________________________________________________ COLUMBIA HIGH YIELD FUND PREPARED FOR HIGHER INTEREST RATES Although we believe that a combination of GDP growth and low inflation have the potential to extend the favorable environment for high-yield securities into 2004, we believe that the market's advances in 2003 already reflect much of this improvement. If the economic recovery proves unsustainable because it has been built on a combination of factors that may have run their course--historically low interest rates, massive tax cuts and substantial budget deficits--we would enjoy an advantage in having maintained a conservative posture for the fund. The fund's focus on quality hurt relative performance last year, but the yield advantage of low-quality bonds has already contracted sharply. If the economy is stronger than we expect, the fund should benefit from having a shorter-than-average maturity relative to its benchmark, a defensive stance designed to cushion the fund against the possibility of higher interest rates. Photo of: Jeffry L. Rippey Jeffry L. Rippey, CFA, has managed or co-managed Columbia High Yield Fund since October 1993 and has been with the advisor and its predecessors since 1981. /s/ Jeffry L. Rippey Investing in high-yield securities offers the potential for high current income and attractive total return, but involves certain risks. Lower-rated bond risks include default of the issuer, rising interest rates and risk associated with investing in securities of foreign and emerging markets, including currency exchange rate fluctuations and economic and political change. 43 Sidebar: PERFORMANCE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04 ($) SALES CHARGE WITHOUT ------------------------ Class Z 14,792 Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares may be worth more or less than the original cost. Please visit www.columbiafunds.com for daily and most recent month-end performance updates. PERFORMANCE INFORMATION_________________________________________________________ COLUMBIA DAILY INCOME COMPANY VALUE OF A $10,000 INVESTMENT 03/01/94 - 02/29/04 (MOUNTAIN CHART) CONSUMER CLASS Z PRICE SHARES INDEX ------ ----- 03/1994 10000.00 10000.00 10074.00 10055.00 10171.00 10158.00 10283.00 10205.00 10417.00 10287.00 10563.00 10375.00 10707.00 10423.00 10846.00 10471.00 10983.00 10560.00 11113.00 10676.00 11249.00 10724.00 11385.00 10813.00 11522.00 10881.00 11665.00 10915.00 11815.00 10963.00 11964.00 11011.00 12116.00 11039.00 12270.00 11101.00 12427.00 11142.00 12580.00 11183.00 12722.00 11217.00 12862.00 11332.00 13007.00 11393.00 13164.00 11475.00 13339.00 11571.00 13526.00 11679.00 13735.00 11782.00 13943.00 11871.00 14141.00 11987.00 14301.00 12116.00 14425.00 12103.00 14513.00 12096.00 14564.00 12124.00 14609.00 12259.00 14652.00 12321.00 14690.00 12361.00 14719.00 12484.00 14744.00 12511.00 14762.00 12586.00 14775.00 12580.00 02/2004 14792.00 12693.00 The above illustration assumes a $10,000 investment made on March 1, 1994, and reinvestment of income and capital gains distributions. In addition, the graph and table do not reflect a deduction of the taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 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. AVERAGE ANNUAL TOTAL RETURN AS OF 02/29/04 (%) CONSUMER PRICE CLASS Z INDEX (INFLATION) - ------------------------------------------------------ 6-Month (Cumulative) 0.17 0.87 - ------------------------------------------------------ 1-Year 0.46 1.69 - ------------------------------------------------------ 5-Year 3.06 2.51 - ------------------------------------------------------ 10-Year 3.99 2.41 AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/03 (%) CONSUMER PRICE CLASS Z INDEX (INFLATION) - ------------------------------------------------------ 6-Month (Cumulative) 0.19 0.33 - ------------------------------------------------------ 1-Year 0.52 1.88 - ------------------------------------------------------ 5-Year 3.20 2.37 - ------------------------------------------------------ 10-Year 4.03 2.37 All results shown assume reinvestment of distributions. 44 Sidebar: SUMMARY o FOR THE SIX-MONTH PERIOD THAT ENDED FEBRUARY 29, 2004, THE FUND'S CLASS Z SHARES RETURNED 0.17%. o THE FUND'S RETURN WAS EQUAL TO THAT OF THE LIPPER MONEY MARKET FUNDS CATEGORY AVERAGE. o YIELDS ON ALL SHORT-TERM FIXED-INCOME SECURITIES WERE LOW THROUGHOUT THE PERIOD. [Illustration of 2 arrows pointing up] CONSUMER PRICE CLASS Z SHARES INDEX (INFLATION) 0.17% 0.87% OBJECTIVE Seeks a high level of income consistent with the maintenance of liquidity and the preservation of capital by investing primarily in high quality money market securities. TOTAL NET ASSETS $749.7 million NET ASSET VALUE PER SHARE AS OF 02/29/04 ($) Class Z 1.00 PORTFOLIO MANAGER'S REPORT______________________________________________________ COLUMBIA DAILY INCOME COMPANY For the six-month period ended February 29, 2004, Columbia Daily Income Company class Z shares returned 0.17%. The Lipper Money Market Funds Category also averaged 0.17% for the period.1 The Federal Reserve Board lowered a key short-term interest rate--the fed funds rate--to 1.0% in June of 2003, and continued to maintain this historically low rate in an effort to stimulate economic growth. As a result, yields on all short-term fixed-income securities were low throughout the period. With the year-over-year inflation rate approximating 2% during 2003, real returns on money-market funds (returns after factoring in inflation) have been in negative territory, a development that has caused considerable frustration for money-market investors. However, the Fed's actions have been deliberate and consistent with textbook economics: Negative real short-term returns provide an incentive for consumers to spend and for businesses to invest. The net expectation of this stimulus is heightened economic activity. And indeed, that's what the economy delivered during the six-month period covered by this report. Third quarter GDP growth was reported at 7.2%, then revised to 8.2%, the fastest pace of growth since the first quarter of 1984. Fourth-quarter growth, was lower, but nonetheless respectable at 4.1%. These advances occurred despite higher prices for oil and other commodities and suggested that a solid economic recovery was underway. Unfortunately, the employment picture has not followed the same upward trajectory. The industrial sector still carries considerable excess capacity, and although the overall unemployment rate has declined from a high point of 6.4% in June 2003, non-farm payroll increases have been well below the levels that ordinarily prevail at this stage of the economic cycle. Until excess capacity is whittled down and the economy begins to add jobs in meaningful numbers, we do not believe we are likely to see the sort of inflationary pressures that might induce the Federal Reserve to raise short-term rates. The chance of a rate increase prior to November is low, given the realities of presidential election year politics. Prevailing 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. 45 Sidebar: PORTFOLIO HIGHLIGHTS AS OF 02/29/04 Seven day current yield 0.36% ------------------------------------- Seven day effective yield 0.36% ------------------------------------- Average days to maturity 34 ________________________________________________________________________________ COLUMBIA DAILY INCOME COMPANY investor opinion, as reflected in the federal funds futures market, indicates the potential for a short-term rate increase toward the end of the year, possibly preceded by a rise in longer-term interest rates. The bottom line is that investors in money market funds are likely to experience negative real returns for months to come. However, the role of a money market fund in your portfolio should be examined in light of your need for diversification and stability as well as for its return potential. Leonard Aplet has managed the fund since 1988 and has been with the advisor and its predecessors since 1987. /s/ Leonard Aplet 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. 46 FINANCIAL STATEMENTS____________________________________________________________ FEBRUARY 29, 2004 COLUMBIA FUNDS
A GUIDE TO UNDERSTANDING YOUR FUND'S FINANCIAL STATEMENTS ---------------------------------------------------------------------------------- INVESTMENT PORTFOLIO The investment portfolio details all of the fund's holdings and their market value as of the last day of the reporting period. Portfolio holdings are organized by type of asset, industry, country or geographic region (if applicable) to demonstrate areas of concentration and diversification. ---------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES This statement details the fund's assets, liabilities, net assets and share price for each share class. Net assets are calculated by subtracting all the fund's liabilities (including any unpaid expenses) from the total of the fund's investment and non-investment assets. The share price for each class is calculated by dividing net assets for that class by the number of shares outstanding in that class as of the last day of the reporting period. ---------------------------------------------------------------------------------- STATEMENT OF OPERATIONS This statement details income earned by the fund and the expenses charged to the fund. The Statement of Operations also shows any net gain or loss the fund realized on the sales of its holdings during the period, as well as any unrealized gains or losses recognized over the period. The total of these results represents the fund's net increase or decrease in net assets from operations. ---------------------------------------------------------------------------------- STATEMENT OF CHANGES IN NET ASSETS This statement demonstrates how the fund's net assets were affected by its operating results, distributions to shareholders and shareholder transactions (e.g., subscriptions, redemptions and dividend reinvestments). The Statement of Changes in Net Assets also reconciles changes in the number of shares outstanding. ---------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS The financial highlights demonstrate how the fund's net asset value per share was affected by the fund's operating results. The financial highlights table also discloses certain key fund ratios (e.g., fund expenses and net investment income as a percentage of average net assets). ---------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS These notes disclose the organizational background of the fund, its significant accounting policies (including those surrounding security valuation, income recognition and distributions to shareholders), federal tax information, fees and compensation paid to affiliates and significant risks and contingencies.
47 INVESTMENT PORTFOLIO____________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA COMMON STOCK FUND SHARES VALUE ($) - ---------------------------------------------------------------------- COMMON STOCKS - 96.9% CONSUMER DISCRETIONARY - 11.2% AUTO COMPONENTS - 0.5% Dana Corp. 100,500 2,149,695 ----------- Auto Components Total 2,149,695 HOTELS, RESTAURANTS & LEISURE - 0.7% Royal Caribbean Cruises Ltd. 69,975 3,096,394 ----------- Hotels, Restaurants & Leisure Total 3,096,394 INTERNET & CATALOG RETAIL - 0.7% eBay, Inc. (a) 39,240 2,702,066 ----------- Internet & Catalog Retail Total 2,702,066 MEDIA - 5.5% Comcast Corp., Class A (a) 48,942 1,470,218 Gannett Co., Inc. 48,250 4,162,528 Lamar Advertising Co. (a) 32,700 1,298,190 Time Warner, Inc. (a) 218,800 3,774,300 Tribune Co. 80,850 4,037,649 Viacom, Inc., Class B 96,825 3,723,890 Walt Disney Co. 169,800 4,504,794 ----------- Media Total 22,971,569 MULTILINE RETAIL - 3.0% Kohl's Corp. (a) 105,725 5,444,838 Target Corp. 156,150 6,864,354 ----------- Multiline Retail Total 12,309,192 TEXTILES, APPAREL & LUXURY GOODS - 0.8% NIKE, Inc., Class B 44,675 3,272,444 ----------- Textiles, Apparel & Luxury Goods Total 3,272,444 ----------- CONSUMER DISCRETIONARY TOTAL 46,501,360 CONSUMER STAPLES - 9.8% BEVERAGES - 1.8% Constellation Brands, Inc., Class A (a) 33,925 1,075,422 PepsiCo, Inc. 121,975 6,330,502 ----------- Beverages Total 7,405,924 FOOD & STAPLES RETAILING - 4.2% Wal-Mart Stores, Inc. 290,750 17,317,070 ----------- Food & Staples Retailing Total 17,317,070 FOOD PRODUCTS - 0.3% Hershey Foods Corp. 17,075 1,415,518 ----------- Food Products Total 1,415,518 HOUSEHOLD PRODUCTS - 1.1% Colgate-Palmolive Co. 38,510 2,135,380 Procter & Gamble Co. 26,080 2,673,461 ----------- Household Products Total 4,808,841 SHARES VALUE ($) - ---------------------------------------------------------------------- PERSONAL PRODUCTS - 0.9% Alberto-Culver Co., Class B 38,710 1,590,207 Avon Products, Inc. 14,075 993,695 Estee Lauder Companies, Inc., Class A 23,510 1,001,526 ----------- Personal Products Total 3,585,428 TOBACCO - 1.5% Altria Group, Inc. 108,975 6,271,511 ----------- Tobacco Total 6,271,511 ----------- CONSUMER STAPLES TOTAL 40,804,292 ENERGY - 3.8% ENERGY EQUIPMENT & SERVICES - 0.6% National-Oilwell, Inc. (a) 40,450 1,201,770 Schlumberger Ltd. 9,790 631,357 Smith International, Inc. (a) 12,675 642,242 ----------- Energy Equipment & Services Total 2,475,369 OIL & GAS - 3.2% Apache Corp. 19,518 803,556 ConocoPhillips 37,175 2,560,242 Exxon Mobil Corp. 226,457 9,549,692 Pioneer Natural Resources Co. (a) 13,020 418,202 ----------- Oil & Gas Total 13,331,692 ----------- ENERGY TOTAL 15,807,061 FINANCIALS - 19.6% CAPITAL MARKETS - 5.4% A.G. Edwards, Inc. 47,750 1,826,438 Bank of New York Co., Inc. 117,025 3,861,825 Goldman Sachs Group, Inc. 50,550 5,351,728 J.P. Morgan Chase & Co. 102,035 4,185,476 Merrill Lynch & Co., Inc. 103,700 6,347,477 Morgan Stanley 14,100 842,616 ----------- Capital Markets Total 22,415,560 COMMERCIAL BANKS - 2.4% Bank of America Corp. (b) 15,005 1,229,210 Bank One Corp. 132,575 7,156,398 Wachovia Corp. 34,075 1,634,578 ----------- Commercial Banks Total 10,020,186 CONSUMER FINANCE - 2.6% American Express Co. 151,250 8,079,775 MBNA Corp. 103,375 2,825,239 ----------- Consumer Finance Total 10,905,014 DIVERSIFIED FINANCIAL SERVICES - 4.3% Ameritrade Holding Corp. (a) 53,625 873,015 CIT Group, Inc. 28,875 1,139,696 Citigroup, Inc. 311,089 15,635,333 ----------- Diversified Financial Services Total 17,648,044 See Accompanying Notes to Financial Statements. 48 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA COMMON STOCK FUND SHARES VALUE ($) - ---------------------------------------------------------------------- COMMON STOCKS - (CONTINUED) FINANCIALS - (CONTINUED) INSURANCE - 4.3% Allstate Corp. (a) 67,055 3,059,720 American International Group, Inc. 97,537 7,217,738 Assurant, Inc. (a) 66,325 1,707,206 Chubb Corp. 41,200 2,924,376 Prudential Financial, Inc. 68,275 3,167,277 ----------- Insurance Total 18,076,317 THRIFTS & MORTGAGE FINANCE - 0.6% Fannie Mae 31,225 2,338,752 ----------- Thrifts & Mortgage Finance Total 2,338,752 ----------- FINANCIALS TOTAL 81,403,873 HEALTH CARE - 10.2% BIOTECHNOLOGY - 1.3% Amgen, Inc. (a) 58,582 3,721,714 Gilead Sciences, Inc. (a) 28,675 1,554,472 ----------- Biotechnology Total 5,276,186 HEALTH CARE EQUIPMENT & SUPPLIES - 0.5% Boston Scientific Corp. (a) 54,625 2,231,431 ----------- Health Care Equipment & Supplies Total 2,231,431 HEALTH CARE PROVIDERS & SERVICES - 1.7% Aetna, Inc. 43,050 3,478,010 Cardinal Health, Inc. 38,575 2,516,247 Henry Schein, Inc. (a) 15,050 1,076,075 ----------- Health Care Providers & Services Total 7,070,332 PHARMACEUTICALS - 6.7% Eli Lilly and Co. 19,850 1,467,709 Johnson & Johnson 122,425 6,599,932 Pfizer, Inc. 368,064 13,489,546 Shire Pharmaceuticals Group PLC, ADR (a) 68,900 2,130,388 Teva Pharmaceutical Industries Ltd., ADR 61,305 3,984,825 ----------- Pharmaceuticals Total 27,672,400 ----------- HEALTH CARE TOTAL 42,250,349 INDUSTRIALS - 14.0% AEROSPACE & DEFENSE - 0.5% Boeing Co. 50,200 2,177,174 ----------- Aerospace & Defense Total 2,177,174 AIR FREIGHT & LOGISTICS - 1.7% United Parcel Service, Inc., Class B 101,025 7,135,396 ----------- Air Freight & Logistics Total 7,135,396 SHARES VALUE ($) ---------------------------------------------------------------------- AIRLINES - 0.2% AMR Corp. (a) 61,225 930,620 ----------- Airlines Total 930,620 COMMERCIAL SERVICES & SUPPLIES - 3.4% Allied Waste Industries, Inc. (a) 136,950 1,729,678 Avery Dennison Corp. 32,725 2,073,783 Manpower, Inc. 62,650 2,803,588 Republic Services, Inc. 82,350 2,160,864 Waste Management, Inc. 190,675 5,434,238 ----------- Commercial Services & Supplies Total 14,202,151 ELECTRICAL EQUIPMENT - 0.5% Emerson Electric Co. 34,200 2,136,816 ----------- Electrical Equipment Total 2,136,816 INDUSTRIAL CONGLOMERATES - 4.4% 3M Co. 53,425 4,168,218 General Electric Co. 439,900 14,305,548 ----------- Industrial Conglomerates Total 18,473,766 MACHINERY - 2.3% Caterpillar, Inc. 39,200 2,969,400 Dover Corp. 150 5,879 ITT Industries, Inc. 57,250 4,322,375 Pall Corp. 77,075 2,017,053 ----------- Machinery Total 9,314,707 ROAD & RAIL - 1.0% Canadian National Railway Co. 67,475 3,995,870 ----------- Road & Rail Total 3,995,870 ----------- INDUSTRIALS TOTAL 58,366,500 INFORMATION TECHNOLOGY - 20.8% COMMUNICATIONS EQUIPMENT - 4.0% Avaya, Inc. (a) 49,000 840,350 Cisco Systems, Inc. (a) 186,990 4,319,469 Emulex Corp. (a) 62,710 1,453,618 Motorola, Inc. 116,000 2,140,200 Nortel Networks Corp. (a) 186,750 1,490,265 QLogic Corp. (a) 62,575 2,615,635 QUALCOMM, Inc. 55,350 3,511,958 ----------- Communications Equipment Total 16,371,495 COMPUTERS & PERIPHERALS - 2.0% Dell, Inc. (a) 47,050 1,536,182 International Business Machines Corp. 45,125 4,354,562 Seagate Technology (a) 143,925 2,489,902 ----------- Computers & Peripherals Total 8,380,646 ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.3% Flextronics International Ltd. (a) 76,725 1,388,722 ----------- Electronic Equipment & Instruments Total 1,388,722 See Accompanying Notes to Financial Statements. 49 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA COMMON STOCK FUND SHARES VALUE ($) - --------------------------------------------------------------------- COMMON STOCKS - (CONTINUED) INFORMATION TECHNOLOGY - (CONTINUED) INTERNET SOFTWARE & SERVICES - 1.2% Check Point Software Technologies Ltd. (a) 105,050 2,418,251 Yahoo!, Inc. (a) 58,125 2,580,750 ----------- Internet Software & Services Total 4,999,001 IT SERVICES - 0.4% Cognizant Technology Solutions Corp.(a) 33,375 1,583,310 ----------- IT Services Total 1,583,310 SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 7.0% Advanced Micro Devices, Inc. (a) 108,500 1,627,500 Applied Micro Circuits Corp. (a) 288,150 1,861,449 Broadcom Corp., Class A 55,125 2,236,972 Intel Corp. 149,150 4,359,654 Linear Technology Corp. 85,900 3,435,141 Marvell Technology Group Ltd. (a) 37,550 1,709,652 Microchip Technology, Inc. 64,075 1,826,138 National Semiconductor Corp. (a) 55,075 2,167,752 NVIDIA Corp. (a) 66,450 1,478,512 Silicon Laboratories, Inc. (a) 46,925 2,645,162 Taiwan Semiconductor Manufacturing Co., Ltd., ADR (a) 272,596 2,832,272 Texas Instruments, Inc. 52,950 1,622,918 Xilinx, Inc. (a) 30,550 1,284,322 ----------- Semiconductors & Semiconductor Equipment Total 29,087,444 SOFTWARE - 5.9% Citrix Systems, Inc. (a) 75,675 1,602,796 Computer Associates International, Inc. 64,825 1,721,752 Mercury Interactive Corp. (a) 54,950 2,667,273 Microsoft Corp. 434,200 11,506,300 Oracle Corp. (a) 315,440 4,062,867 Symantec Corp. (a) 46,125 1,897,582 VERITAS Software Corp. (a) 40,125 1,220,602 ----------- Software Total 24,679,172 ----------- INFORMATION TECHNOLOGY TOTAL 86,489,790 MATERIALS - 7.5% CHEMICALS - 3.2% Dow Chemical Co. 220,600 9,589,482 Praxair, Inc. 105,175 3,819,956 ----------- Chemicals Total 13,409,438 CONTAINERS & PACKAGING - 0.6% Smurfit-Stone Container Corp. (a) 135,200 2,509,312 ----------- Containers & Packaging Total 2,509,312 SHARES VALUE ($) - ---------------------------------------------------------------------- METALS & MINING - 2.7% Alcan, Inc. 117,675 5,604,860 Alcoa, Inc. 148,625 5,568,979 ----------- Metals & Mining Total 11,173,839 PAPER & FOREST PRODUCTS - 1.0% International Paper Co. 90,800 4,018,808 ----------- Paper & Forest Products Total 4,018,808 ----------- MATERIALS TOTAL 31,111,397 TOTAL COMMON STOCKS (Cost of $323,565,260) 402,734,622 PREFERRED STOCK - 1.5% CONSUMER DISCRETIONARY - 1.5% MEDIA - 1.5% News Corp., Ltd., ADR (Cost of $5,277,680) 190,850 6,246,520 ----------- TOTAL INVESTMENTS - 98.4% (COST OF $328,842,940) (C) 408,981,142 OTHER ASSETS & LIABILITIES, NET - 1.6% 6,601,626 NET ASSETS - 100.0% 415,582,768 NOTES TO INVESTMENT PORTFOLIO: (a) Non-income producing. (b) Investments in affiliates during the six months ended February 29, 2004: Security Name: Bank of America Corp. (As a result of a merger effective April 1, 2004, Bank of America Corp. became the parent company of the Investment Advisor.) Shares as of 08/31/03: 114,005 Shares sold: (99,000) Shares as of 02/29/04: 15,005 Net realized gain or loss: $3,150,135 Dividend income earned: $ 121,328 Value at end of period: $1,229,210 (c) Cost for both financial statement and federal income tax purposes is the same. ACRONYM NAME ------- ---- ADR American Depositary Receipt See Accompanying Notes to Financial Statements. 50 INVESTMENT PORTFOLIO____________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA GROWTH FUND SHARES VALUE ($) - ---------------------------------------------------------------------- COMMON STOCKS - 99.2% CONSUMER DISCRETIONARY - 15.1% HOTELS, RESTAURANTS & LEISURE - 0.5% Yum! Brands, Inc. (a) 139,280 5,157,538 ----------- Hotels, Restaurants & Leisure Total 5,157,538 INTERNET & CATALOG RETAIL - 1.1% eBay, Inc. (a) 155,500 10,707,730 ----------- Internet & Catalog Retail Total 10,707,730 MEDIA - 4.4% Clear Channel Communications, Inc. 90,031 3,874,934 Omnicom Group, Inc. 111,700 9,137,060 Viacom, Inc., Class B 492,590 18,945,011 Walt Disney Co. 238,600 6,330,058 XM Satellite Radio Holdings, Inc., Class A (a) 160,800 3,936,384 ----------- Media Total 42,223,447 MULTILINE RETAIL - 2.1% Kohl's Corp. (a) 190,800 9,826,200 Target Corp. 234,900 10,326,204 ----------- Multiline Retail Total 20,152,404 SPECIALTY RETAIL - 6.3% Bed Bath & Beyond, Inc. (a) 273,060 11,162,693 Best Buy Co., Inc. 204,100 10,868,325 Chico's FAS, Inc. (a) 195,700 8,366,175 Home Depot, Inc. 326,000 11,837,060 Lowe's Companies, Inc. 320,300 17,936,800 ----------- Specialty Retail Total 60,171,053 TEXTILES, APPAREL & LUXURY GOODS - 0.7% Coach, Inc. (a) 174,600 6,919,398 ----------- Textiles, Apparel & Luxury Goods Total 6,919,398 ----------- CONSUMER DISCRETIONARY TOTAL 145,331,570 CONSUMER STAPLES - 9.8% BEVERAGES - 1.1% PepsiCo, Inc. 208,340 10,812,846 ----------- Beverages Total 10,812,846 FOOD & STAPLES RETAILING - 4.8% Costco Wholesale Corp. (a) 342,900 13,349,097 Sysco Corp. 204,110 8,092,962 Wal-Mart Stores, Inc. 413,190 24,609,596 ----------- Food & Staples Retailing Total 46,051,655 FOOD PRODUCTS - 0.7% Bunge Ltd. 177,500 6,931,375 ----------- Food Products Total 6,931,375 SHARES VALUE ($) - ---------------------------------------------------------------------- HOUSEHOLD PRODUCTS - 1.3% Procter & Gamble Co. 118,060 12,102,331 ----------- Household Products Total 12,102,331 PERSONAL PRODUCTS - 0.8% Alberto-Culver Co., Class B 182,745 7,507,165 ----------- Personal Products Total 7,507,165 TOBACCO - 1.1% Altria Group, Inc. 182,800 10,520,140 ----------- Tobacco Total 10,520,140 ----------- CONSUMER STAPLES TOTAL 93,925,512 ENERGY - 1.4% ENERGY EQUIPMENT & SERVICES - 1.4% Noble Corp. (a) 98,250 3,988,950 Schlumberger Ltd. 147,500 9,512,275 ----------- Energy Equipment & Services Total 13,501,225 ----------- ENERGY TOTAL 13,501,225 FINANCIALS - 4.5% CAPITAL MARKETS - 0.8% Merrill Lynch & Co., Inc. 132,200 8,091,962 ----------- Capital Markets Total 8,091,962 COMMERCIAL BANKS - 0.8% Charter One Financial, Inc. 202,000 7,316,440 ----------- Commercial Banks Total 7,316,440 CONSUMER FINANCE - 1.3% American Express Co. 94,900 5,069,558 MBNA Corp. 286,500 7,830,045 ----------- Consumer Finance Total 12,899,603 DIVERSIFIED FINANCIAL SERVICES - 1.6% Citigroup, Inc. 296,626 14,908,423 ----------- Diversified Financial Services Total 14,908,423 ----------- FINANCIALS TOTAL 43,216,428 HEALTH CARE - 19.7% BIOTECHNOLOGY - 4.3% Amgen, Inc. (a) 385,100 24,465,403 Gilead Sciences, Inc. (a) 223,900 12,137,619 Martek Biosciences Corp. (a) 79,200 4,709,232 ----------- Biotechnology Total 41,312,254 HEALTH CARE EQUIPMENT & SUPPLIES - 6.1% Alcon, Inc. 165,100 10,378,186 Boston Scientific Corp. (a) 350,840 14,331,814 St. Jude Medical, Inc. (a) 166,700 12,110,755 See Accompanying Notes to Financial Statements. 51 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA GROWTH FUND SHARES VALUE ($) - ---------------------------------------------------------------------- COMMON STOCKS - (CONTINUED) HEALTH CARE - (CONTINUED) HEALTH CARE EQUIPMENT & SUPPLIES - (CONTINUED) Varian Medical Systems, Inc. (a) 125,500 10,509,370 Zimmer Holdings, Inc. (a) 147,300 11,141,772 ----------- Health Care Equipment & Supplies Total 58,471,897 HEALTH CARE PROVIDERS & SERVICES - 2.0% Caremark Rx, Inc. (a) 596,900 19,255,994 ----------- Health Care Providers & Services Total 19,255,994 PHARMACEUTICALS - 7.3% Pfizer, Inc. 1,290,233 47,287,040 Teva Pharmaceutical Industries Ltd., ADR 356,023 23,141,495 ----------- Pharmaceuticals Total 70,428,535 ----------- HEALTH CARE TOTAL 189,468,680 INDUSTRIALS - 12.8% AEROSPACE & DEFENSE - 1.0% United Technologies Corp. 105,400 9,708,394 ----------- Aerospace & Defense Total 9,708,394 COMMERCIAL SERVICES & SUPPLIES - 1.3% Cendant Corp. 543,400 12,335,180 ----------- Commercial Services & Supplies Total 12,335,180 INDUSTRIAL CONGLOMERATES - 9.4% 3M Co. 162,500 12,678,250 General Electric Co. 1,875,985 61,007,032 Tyco International Ltd. 580,350 16,580,600 ----------- Industrial Conglomerates Total 90,265,882 MACHINERY - 1.1% ITT Industries, Inc. 139,800 10,554,900 ----------- Machinery Total 10,554,900 ----------- INDUSTRIALS TOTAL 122,864,356 INFORMATION TECHNOLOGY - 31.7% COMMUNICATIONS EQUIPMENT - 5.7% Avaya, Inc. (a) 39,000 668,850 Cisco Systems, Inc. (a) 1,469,675 33,949,492 QLogic Corp. (a) 86,700 3,624,060 QUALCOMM, Inc. 264,900 16,807,905 ----------- Communications Equipment Total 55,050,307 COMPUTERS & PERIPHERALS - 2.3% Dell, Inc. (a) 379,490 12,390,348 EMC Corp. (a) 638,900 9,149,048 ----------- Computers & Peripherals Total 21,539,396 SHARES VALUE ($) - ---------------------------------------------------------------------- ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.5% Agilent Technologies, Inc. (a) 234,200 8,007,298 Flextronics International Ltd. (a) 326,400 5,907,840 ----------- Electronic Equipment & Instruments Total 13,915,138 INTERNET SOFTWARE & SERVICES - 0.6% Yahoo!, Inc. (a) 129,800 5,763,120 ----------- Internet Software & Services Total 5,763,120 IT SERVICES - 1.5% Cognizant Technology Solutions Corp. (a) 126,600 6,005,904 Paychex, Inc. 257,100 8,270,907 ----------- IT Services Total 14,276,811 SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 11.1% ASML Holding NV, N.Y. Registered Shares (a) 364,200 6,650,292 Broadcom Corp., Class A (a) 82,918 3,364,812 Intel Corp. 1,331,570 38,921,791 Linear Technology Corp. 113,700 4,546,863 Marvell Technology Group Ltd. (a) 92,400 4,206,972 Microchip Technology, Inc. 333,800 9,513,300 PMC-Sierra, Inc. (a) 163,500 3,253,650 Samsung Electronics Co., Ltd., GDR (b) 50,200 11,721,700 Silicon Laboratories, Inc. (a) 88,200 4,971,834 Taiwan Semiconductor Manufacturing Co., Ltd., ADR (a) 675,366 7,017,053 Texas Instruments, Inc. 290,500 8,903,825 Xilinx, Inc. (a) 87,000 3,657,480 ----------- Semiconductors & Semiconductor Equipment Total 106,729,572 SOFTWARE - 9.0% Amdocs Ltd. (a) 188,100 5,244,228 Electronic Arts, Inc. (a) 263,300 12,417,228 Mercury Interactive Corp. (a) 46,400 2,252,256 Microsoft Corp. 1,388,900 36,805,850 Oracle Corp. (a) 435,690 5,611,687 SAP AG, ADR 329,900 13,064,040 Symantec Corp. (a) 144,600 5,948,844 VERITAS Software Corp. (a) 176,800 5,378,256 ----------- Software Total 86,722,389 ----------- INFORMATION TECHNOLOGY TOTAL 303,996,733 MATERIALS - 3.1% CHEMICALS - 1.5% Praxair, Inc. 393,100 14,277,392 ----------- Chemicals Total 14,277,392 METALS & MINING - 1.6% Alcoa, Inc. 413,300 15,486,351 ----------- Metals & Mining Total 15,486,351 ----------- MATERIALS TOTAL 29,763,743 See Accompanying Notes to Financial Statements. 52 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA GROWTH FUND SHARES VALUE ($) - ---------------------------------------------------------------------- COMMON STOCKS - (CONTINUED) TELECOMMUNICATION SERVICES - 1.1% WIRELESS TELECOMMUNICATION SERVICES - 1.1% American Tower Corp., Class A (a) 237,900 2,628,795 Crown Castle International Corp. (a) 268,060 3,230,123 Mobile Telesystems, ADR 20,600 2,209,350 VimpelCom, ADR (a) 25,300 2,147,717 ----------- Wireless Telecommunication Services Total 10,215,985 ----------- TELECOMMUNICATION SERVICES TOTAL 10,215,985 TOTAL COMMON STOCKS (Cost of $749,255,950) 952,284,232 PREFERRED STOCK - 0.7% CONSUMER DISCRETIONARY - 0.7% MEDIA - 0.7% News Corp., Ltd., ADR (Cost of $6,912,438) 208,600 6,827,478 ----------- TOTAL INVESTMENTS - 99.9% (COST OF $756,168,388) (C) 959,111,710 OTHER ASSETS & LIABILITIES, NET - 0.1% 1,080,635 NET ASSETS - 100.0% 960,192,345 NOTES TO INVESTMENT PORTFOLIO: (a) Non-income producing. (b) This security is exempt from registration under Rule 144A of the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At February 29, 2004, the value of this security amounted to $11,721,700, which represents 1.2% of net assets. (c) Cost for both financial statement and federal income tax purposes is the same. ACRONYM NAME ------- ---- ADR American Depositary Receipt GDR Global Depositary Receipt See Accompanying Notes to Financial Statements. 53 INVESTMENT PORTFOLIO____________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA INTERNATIONAL STOCK FUND SHARES VALUE ($) - ---------------------------------------------------------------------- COMMON STOCKS - 95.2% CONSUMER DISCRETIONARY - 16.5% AUTO COMPONENTS - 0.7% Continental AG 87,000 3,579,608 ----------- Auto Components Total 3,579,608 AUTOMOBILES - 1.4% Nissan Motor Co., Ltd. 212,000 2,354,908 Toyota Motor Corp. 155,300 5,361,548 ----------- Automobiles Total 7,716,456 HOTELS, RESTAURANTS & LEISURE - 2.1% Accor SA 93,980 4,141,240 Compass Group PLC 605,360 4,139,988 InterContinental Hotels Group PLC 294,200 2,854,680 ----------- Hotels, Restaurants & Leisure Total 11,135,908 HOUSEHOLD DURABLES - 3.7% Koninklijke (Royal) Philips Electronics NV 230,300 7,027,002 Matsushita Electronic Industrial Co., Ltd. 606,000 8,840,275 Sony Corp. 97,000 3,961,722 ----------- Household Durables Total 19,828,999 MEDIA - 4.8% Dentsu, Inc. 670 3,405,220 JC Decaux SA (a) 116,700 2,347,649 News Corp., Ltd. 281,900 2,653,493 Pearson PLC 338,200 3,912,701 ProSiebenSat.1 Media AG 121,000 2,567,034 Reuters Group PLC 642,821 4,690,058 United Business Media PLC 260,600 2,691,556 WPP Group PLC 349,000 3,920,426 ----------- Media Total 26,188,137 MULTILINE RETAIL - 1.5% Big C Supercenter Public Co., Ltd. 4,186,700 1,886,813 Next PLC 160,558 4,167,451 Seiyu Ltd. (a) 691,000 2,278,022 ----------- Multiline Retail Total 8,332,286 SPECIALTY RETAIL - 0.7% Aoyama Trading Co., Ltd. 101,400 2,038,214 USS Co., Ltd. 24,370 1,792,043 ----------- Specialty Retail Total 3,830,257 TEXTILES, APPAREL & LUXURY GOODS - 1.6% Burberry Group PLC 544,846 3,586,346 Puma AG 16,400 3,375,316 Sanyo Shokai Ltd. 319,000 1,808,251 ----------- Textiles, Apparel & Luxury Goods Total 8,769,913 ----------- CONSUMER DISCRETIONARY TOTAL 89,381,564 SHARES VALUE ($) - ---------------------------------------------------------------------- CONSUMER STAPLES - 5.8% BEVERAGES - 1.8% Diageo PLC 400,638 5,569,546 Pernod-Ricard SA 32,150 3,962,008 ----------- Beverages Total 9,531,554 FOOD & STAPLES RETAILING - 0.9% C.P. 7-Eleven Public Co., Ltd. (a) 750,000 1,288,988 Casino Guichard-Perrachon SA 36,470 3,631,917 ----------- Food & Staples Retailing Total 4,920,905 FOOD PRODUCTS - 1.1% Nestle SA, Registered Shares 20,600 5,461,596 Thai Union Frozen Products Public Co., Ltd. 930,400 639,613 ----------- Food Products Total 6,101,209 HOUSEHOLD PRODUCTS - 1.6% Reckitt Benckiser PLC 322,760 8,467,913 ----------- Household Products Total 8,467,913 TOBACCO - 0.4% Imperial Tobacco Group PLC 113,800 2,461,144 ----------- Tobacco Total 2,461,144 ----------- CONSUMER STAPLES TOTAL 31,482,725 ENERGY - 7.1% OIL & GAS - 7.1% BP PLC 110,318 890,830 BP PLC, ADR 244,230 12,016,116 EnCana Corp. 118,200 5,109,250 ENI S.p.A. 601,750 11,842,546 PTT Public Co., Ltd. 788,100 3,009,930 Total SA 31,375 5,755,703 ----------- Oil & Gas Total 38,624,375 ----------- ENERGY TOTAL 38,624,375 FINANCIALS - 23.8% BANKS - 0.0% Fortis Bank Nederland Holding NV (a)(b)(c) 4,100 0 ----------- Banks Total 0 COMMERCIAL BANKS - 13.3% Alpha Bank A.E. 117,780 3,577,580 Anglo Irish Bank Corp. PLC 206,000 3,527,107 Banca Intesa S.p.A. 810,900 3,025,769 Banco Popolare di Verona e Novara 211,600 3,670,521 Banco Santander Central Hispano SA 333,800 3,882,393 Barclays PLC 653,850 5,902,153 Credit Agricole SA 186,569 4,819,557 Credit Suisse Group 261,940 9,577,482 Erste Bank der oesterreichischen Sparkassen AG 36,700 5,147,895 See Accompanying Notes to Financial Statements. 54 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA INTERNATIONAL STOCK FUND SHARES VALUE ($) - ---------------------------------------------------------------------- COMMON STOCKS - (CONTINUED) FINANCIALS - (CONTINUED) COMMERCIAL BANKS - (CONTINUED) Hansabank Ltd. 88,149 2,601,632 Kookmin Bank (a) 97,500 4,062,155 Royal Bank of Scotland Group PLC 255,071 8,110,396 Siam Commercial Bank Public Co., Ltd. (a) 3,333,600 3,989,286 Societe Generale 41,900 3,736,057 Standard Chartered PLC 147,322 2,551,097 UFJ Holdings, Inc. (a) 943 4,231,410 ----------- Commercial Banks Total 72,412,490 DIVERSIFIED FINANCIAL SERVICES - 2.5% ING Groep NV 353,140 8,672,999 Nomura Holdings, Inc. 292,000 4,639,377 ----------- Diversified Financial Services Total 13,312,376 INSURANCE - 4.4% Allianz AG (a) 74,200 9,283,866 Daido Life Insurance 650 2,023,809 Irish Life & Permanent PLC 127,100 2,069,919 Millea Holdings, Inc. 603 7,730,769 Mitsui Sumitomo Insurance Co. 322,000 2,830,769 ----------- Insurance Total 23,939,132 REAL ESTATE - 3.6% Land and Houses Public Co., Ltd., NVDR 8,362,600 2,533,799 Mitsubishi Estate Co., Ltd. 658,000 7,664,615 Sumitomo Realty & Development Co., Ltd. 158,000 1,538,040 Sun Hung Kai Properties Ltd. 798,000 7,842,424 ----------- Real Estate Total 19,578,878 ----------- FINANCIALS TOTAL 129,242,876 HEALTH CARE - 6.8% HEALTH CARE EQUIPMENT & SUPPLIES - 2.5% Olympus Corp. 73,000 1,520,833 Phonak Holding AG 63,100 1,687,927 ResMed, Inc. (a) 44,900 2,112,994 Smith & Nephew PLC 887,110 8,496,065 ----------- Health Care Equipment & Supplies Total 13,817,819 PHARMACEUTICALS - 4.3% Chugai Pharmaceutical Co., Ltd. 399,500 5,893,722 Dr. Reddy's Laboratories Ltd., ADR 58,000 1,476,100 GlaxoSmithKline PLC 321,426 6,723,540 Novartis AG 112,480 4,980,615 Takeda Chemical Industries Ltd. 44,100 1,817,308 Teva Pharmaceutical Industries Ltd., ADR 35,200 2,288,000 ----------- Pharmaceuticals Total 23,179,285 ----------- HEALTH CARE TOTAL 36,997,104 SHARES VALUE ($) ---------------------------------------------------------------------- INDUSTRIALS - 9.6% BUILDING PRODUCTS - 0.8% Wienerberger AG 128,332 4,067,860 ----------- Building Products Total 4,067,860 COMMERCIAL SERVICES & SUPPLIES - 2.2% Capita Group PLC 1,205,597 6,152,773 Randstad Holding NV 205,218 6,026,077 ----------- Commercial Services & Supplies Total 12,178,850 CONSTRUCTION & ENGINEERING - 0.9% Shimizu Corp. 586,000 2,618,755 Taisei Corp. 688,000 2,394,139 ----------- Construction & Engineering Total 5,012,894 ELECTRICAL EQUIPMENT - 2.4% Nitto Denko Corp. 61,200 3,026,374 Siemens AG 131,700 10,198,231 ----------- Electrical Equipment Total 13,224,605 MACHINERY - 1.4% Atlas Copco AB, Class B 151,700 4,979,481 Linde AG 49,400 2,607,125 ----------- Machinery Total 7,586,606 ROAD & RAIL - 0.5% Tokyu Corp. 486,000 2,612,472 ----------- Road & Rail Total 2,612,472 TRADING COMPANIES & DISTRIBUTORS - 0.8% Mitsubishi Corp. 413,000 4,077,051 ----------- Trading Companies & Distributors Total 4,077,051 TRANSPORTATION INFRASTRUCTURE - 0.6% BAA PLC 334,720 3,279,083 ----------- Transportation Infrastructure Total 3,279,083 ----------- INDUSTRIALS TOTAL 52,039,421 INFORMATION TECHNOLOGY - 11.7% COMMUNICATIONS EQUIPMENT - 0.5% Nortel Networks Corp. (a) 355,190 2,840,246 ----------- Communications Equipment Total 2,840,246 ELECTRONIC EQUIPMENT & INSTRUMENTS - 2.9% Celestica, Inc. (a) 131,400 2,258,576 Epcos AG (a) 91,000 2,179,283 Flextronics International Ltd. (a) 135,000 2,443,500 Hoya Corp. 25,700 2,412,317 Keyence Corp. 10,500 2,166,346 TDK Corp. 64,200 4,479,890 ----------- Electronic Equipment & Instruments Total 15,939,912 INTERNET SOFTWARE & SERVICES - 1.0% Index Corp. 394 1,659,707 T-Online International AG (a) 257,500 3,525,179 ----------- Internet Software & Services Total 5,184,886 See Accompanying Notes to Financial Statements. 55 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA INTERNATIONAL STOCK FUND SHARES VALUE ($) - ---------------------------------------------------------------------- COMMON STOCKS - (CONTINUED) INFORMATION TECHNOLOGY - (CONTINUED) IT SERVICES - 0.6% Indra Sistemas SA 220,500 3,024,152 ----------- IT Services Total 3,024,152 OFFICE ELECTRONICS - 1.0% Canon, Inc. 110,000 5,369,048 ----------- Office Electronics Total 5,369,048 SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 5.2% ARM Holdings PLC (a) 2,262,400 5,108,179 Nikon Corp. 259,000 3,194,808 Samsung Electronics Co., Ltd. 20,600 9,526,517 STMicroelectronics NV, N.Y. Registered Shares 158,100 4,086,885 Taiwan Semiconductor Manufacturing Co., Ltd., ADR (a) 245,200 2,547,628 Tokyo Electron Ltd. 67,300 4,061,419 ----------- Semiconductors & Semiconductor Equipment Total 28,525,436 SOFTWARE - 0.5% Dassault Systemes SA 64,291 2,816,142 ----------- Software Total 2,816,142 ----------- INFORMATION TECHNOLOGY TOTAL 63,699,822 MATERIALS - 4.7% CHEMICALS - 1.8% BASF AG 56,900 3,039,158 MG Technologies AG 193,500 2,938,792 Shin-Etsu Chemical Co., Ltd. 32,800 1,276,557 Syngenta AG 37,300 2,599,236 ----------- Chemicals Total 9,853,743 CONSTRUCTION MATERIALS - 1.3% Siam Cement Public Co., Ltd, NVDR (a) 1,164,750 7,117,505 ----------- Construction Materials Total 7,117,505 METALS & MINING - 0.5% BHP Billiton Ltd. 293,800 2,785,958 ----------- Metals & Mining Total 2,785,958 PAPER & FOREST PRODUCTS - 1.1% Stora Enso Oyj, Class R 280,500 3,742,035 UPM-Kymmene Oyj 112,100 2,217,339 ----------- Paper & Forest Products Total 5,959,374 ----------- MATERIALS TOTAL 25,716,580 SHARES VALUE ($) - ---------------------------------------------------------------------- TELECOMMUNICATION SERVICES - 7.2% DIVERSIFIED TELECOMMUNICATION SERVICES - 5.1% France Telecom SA (a) 120,000 3,320,047 Nippon Telegraph & Telephone Corp. 473 2,191,740 Portugal Telecom, SGPS, SA 465,140 5,270,682 Telecom Italia S.p.A. (a) 1,510,800 4,770,070 Telefonaktiebolaget LM Ericsson, ADR (a) 214,600 6,227,692 Telefonica SA (a) 355,184 5,793,303 ----------- Diversified Telecommunication Services Total 27,573,534 WIRELESS TELECOMMUNICATION SERVICES - 2.1% NTT DoCoMo, Inc. 2,058 4,278,077 Vodafone Group PLC 2,935,629 7,354,054 ----------- Wireless Telecommunication Services Total 11,632,131 ----------- TELECOMMUNICATION SERVICES TOTAL 39,205,665 UTILITIES - 2.0% ELECTRIC UTILITIES - 2.0% E.ON AG 53,900 3,659,190 National Grid Transco PLC 527,836 4,245,097 Public Power Corp. 97,900 2,631,635 ----------- Electric Utilities Total 10,535,922 ----------- UTILITIES TOTAL 10,535,922 TOTAL COMMON STOCKS (Cost of $429,022,332) 516,926,054 SHORT-TERM OBLIGATION - 5.0% PAR ($) - ----------------------------------------------------- Repurchase agreement with State Street Bank & Trust Co., dated 02/27/04, due 03/01/04 at 0.930%, collateralized by a U.S. Treasury Note maturing 08/31/05, market value $27,613,599 (repurchase proceeds $27,072,098) (Cost of $27,070,000) 27,070,000 27,070,000 ----------- TOTAL INVESTMENTS - 100.2% (COST OF $456,092,332) (d) 543,996,054 OTHER ASSETS & LIABILITIES, NET - (0.2)% (1,124,739) NET ASSETS - 100.0% 542,871,315 See Accompanying Notes to Financial Statements. 56 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA INTERNATIONAL STOCK FUND NOTES TO INVESTMENT PORTFOLIO: (a) Non-income producing. (b) This security is exempt from registration under Rule 144A of the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At February 29, 2004, 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 both financial statement and federal income tax purposes is the same. SUMMARY OF SECURITIES % OF TOTAL BY COUNTRY VALUE INVESTMENTS --------------------------------------------------------------- Japan $117,549,556 21.6% United Kingdom 117,291,193 21.6 Germany 46,952,781 8.6 France 34,530,320 6.3 United States* 29,182,994 5.4 Netherlands 25,812,962 4.7 Switzerland 24,306,857 4.5 Italy 23,308,906 4.3 Thailand 20,465,933 3.8 South Korea 13,588,672 2.5 Spain 12,699,848 2.3 Sweden 11,207,173 2.1 Canada 10,208,072 1.9 Austria 9,215,754 1.7 Hong Kong 7,842,424 1.4 Greece 6,209,215 1.1 Finland 5,959,374 1.1 Ireland 5,597,026 1.0 Australia 5,439,452 1.0 Portugal 5,270,682 1.0 Estonia 2,601,632 0.5 Taiwan 2,547,628 0.5 Singapore 2,443,500 0.4 Israel 2,288,000 0.4 India 1,476,100 0.3 ------------ ------------ $543,996,054 100.0% ============ ============ * Includes Short-Term Obligation. Certain securities are listed by country of underlying exposure but may trade predominately on other exchanges. ACRONYM NAME ------- ---- ADR American Depositary Receipt NVDR Non-Voting Depositary Receipt See Accompanying Notes to Financial Statements. 57 INVESTMENT PORTFOLIO____________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA MID CAP GROWTH FUND SHARES VALUE ($) - ---------------------------------------------------------------------- COMMON STOCKS - 97.7% CONSUMER DISCRETIONARY - 17.5% AUTO COMPONENTS - 3.4% Autoliv, Inc. 421,300 18,697,294 Dana Corp. 433,000 9,261,870 Gentex Corp. 218,700 8,914,212 ----------- Auto Components Total 36,873,376 HOTELS, RESTAURANTS & LEISURE - 2.1% Harrah's Entertainment, Inc. 103,400 5,371,630 Hilton Hotels Corp. 334,500 5,362,035 MGM MIRAGE (a) 139,700 6,083,935 Outback Steakhouse, Inc. 126,550 6,123,754 ----------- Hotels, Restaurants & Leisure Total 22,941,354 HOUSEHOLD DURABLES - 2.1% Garmin Ltd. 362,000 16,594,080 Harman International Industries, Inc. 69,200 5,396,908 ----------- Household Durables Total 21,990,988 INTERNET & CATALOG RETAIL - 1.1% InterActiveCorp (a) 375,800 12,239,806 ----------- Internet & Catalog Retail Total 12,239,806 LEISURE EQUIPMENT & PRODUCTS - 0.7% Brunswick Corp. 183,000 7,202,880 ----------- Leisure Equipment & Products Total 7,202,880 MEDIA - 2.5% Cox Radio, Inc., Class A (a) 199,500 4,379,025 Univision Communications, Inc., Class A (a) 617,950 22,017,559 ----------- Media Total 26,396,584 MULTILINE RETAIL - 0.9% Dollar Tree Stores, Inc. (a) 298,300 9,217,470 ----------- Multiline Retail Total 9,217,470 SPECIALTY RETAIL - 4.7% Bed Bath & Beyond, Inc. (a) 356,700 14,581,896 CDW Corp. 204,900 14,174,982 Staples, Inc. (a) 290,600 7,619,532 Williams-Sonoma, Inc. (a) 437,600 13,998,824 ----------- Specialty Retail Total 50,375,234 ----------- CONSUMER DISCRETIONARY TOTAL 187,237,692 CONSUMER STAPLES - 0.6% FOOD PRODUCTS - 0.6% Dean Foods Co. (a) 168,400 6,114,604 ----------- Food Products Total 6,114,604 ----------- CONSUMER STAPLES TOTAL 6,114,604 SHARES VALUE ($) - ---------------------------------------------------------------------- ENERGY - 6.5% ENERGY EQUIPMENT & SERVICES - 3.7% BJ Services Co. (a) 212,000 9,177,480 Nabors Industries Ltd. (a) 169,050 8,004,517 National-Oilwell, Inc. (a) 437,000 12,983,270 Patterson-UTI Energy, Inc. (a) 259,950 9,430,986 ----------- Energy Equipment & Services Total 39,596,253 OIL & GAS - 2.8% Apache Corp. 195,844 8,062,897 Murphy Oil Corp. 170,100 10,670,373 XTO Energy, Inc. 366,700 10,942,328 ----------- Oil & Gas Total 29,675,598 ----------- ENERGY TOTAL 69,271,851 FINANCIALS - 1.6% INSURANCE - 1.6% Ambac Financial Group, Inc. 149,500 11,690,900 StanCorp Financial Group, Inc. 82,050 5,411,198 ----------- Insurance Total 17,102,098 ----------- FINANCIALS TOTAL 17,102,098 HEALTH CARE - 20.4% BIOTECHNOLOGY - 2.3% Amylin Pharmaceuticals, Inc. (a) 393,430 9,017,416 Gilead Sciences, Inc. (a) 88,200 4,781,322 ICOS Corp. (a) 279,700 10,706,916 ----------- Biotechnology Total 24,505,654 HEALTH CARE EQUIPMENT & SUPPLIES - 3.4% Boston Scientific Corp. (a) 296,200 12,099,770 Kinetic Concepts, Inc. (a) 133,500 5,386,725 Varian Medical Systems, Inc. (a) 154,140 12,907,684 Zimmer Holdings, Inc. (a) 73,700 5,574,668 ----------- Health Care Equipment & Supplies Total 35,968,847 HEALTH CARE PROVIDERS & SERVICES - 8.6% Anthem, Inc. (a) 112,150 9,639,292 Caremark Rx, Inc. (a) 576,150 18,586,599 Community Health Systems, Inc. (a) 390,280 10,947,354 DaVita, Inc. (a) 357,750 16,281,202 Health Management Associates, Inc. 200,000 4,458,000 Manor Care, Inc. 332,400 11,770,284 UnitedHealth Group, Inc. 190,000 11,780,000 WellPoint Health Networks, Inc. (a) 81,500 8,864,755 ----------- Health Care Providers & Services Total 92,327,486 PHARMACEUTICALS - 6.1% Barr Pharmaceuticals, Inc. (a) 186,975 14,473,735 Elan Corp. PLC, ADR (a) 644,400 9,292,248 Endo Pharmaceuticals Holdings, Inc. (a) 367,000 8,907,090 IVAX Corp. (a) 437,500 9,738,750 See Accompanying Notes to Financial Statements. 58 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA MID CAP GROWTH FUND SHARES VALUE ($) - ---------------------------------------------------------------------- COMMON STOCKS - (CONTINUED) HEALTH CARE - (CONTINUED) PHARMACEUTICALS - (CONTINUED) Medicis Pharmaceutical Corp., Class A 375,000 14,763,750 Teva Pharmaceutical Industries Ltd., ADR 132,600 8,619,000 ----------- Pharmaceuticals Total 65,794,573 ----------- HEALTH CARE TOTAL 218,596,560 INDUSTRIALS - 10.6% COMMERCIAL SERVICES & SUPPLIES - 7.2% Allied Waste Industries, Inc. (a) 948,200 11,975,766 ChoicePoint, Inc. (a) 302,790 11,403,071 Corporate Executive Board Co. (a) 197,700 9,859,299 Education Management Corp. (a) 417,400 13,360,974 Manpower, Inc. 250,700 11,218,825 Monster Worldwide, Inc. (a) 559,200 12,302,400 Robert Half International, Inc. (a) 317,600 7,136,472 ----------- Commercial Services & Supplies Total 77,256,807 ELECTRICAL EQUIPMENT - 1.6% American Power Conversion Corp. 774,800 17,525,976 ----------- Electrical Equipment Total 17,525,976 MACHINERY - 1.0% Donaldson Co., Inc. 192,800 10,995,384 ----------- Machinery Total 10,995,384 TRADING COMPANIES & DISTRIBUTORS - 0.8% Fastenal Co. 172,700 8,367,315 ----------- Trading Companies & Distributors Total 8,367,315 ----------- INDUSTRIALS TOTAL 114,145,482 INFORMATION TECHNOLOGY - 39.2% COMMUNICATIONS EQUIPMENT - 7.3% 3Com Corp. (a) 1,198,700 8,390,900 Avaya, Inc. (a) 698,200 11,974,130 Comverse Technology, Inc. (a) 1,047,725 20,661,137 Foundry Networks, Inc. (a) 426,700 10,070,120 Polycom, Inc. (a) 704,300 15,543,901 UTStarcom, Inc. (a) 350,900 11,625,668 ----------- Communications Equipment Total 78,265,856 COMPUTERS & PERIPHERALS - 1.2% Lexmark International, Inc. (a) 149,740 12,322,105 ----------- Computers & Peripherals Total 12,322,105 ELECTRONIC EQUIPMENT & INSTRUMENTS - 6.3% Agilent Technologies, Inc. (a) 509,900 17,433,481 Amphenol Corp., Class A (a) 289,500 17,905,575 Flextronics International Ltd. (a) 515,200 9,325,120 SHARES VALUE ($) ---------------------------------------------------------------------- Symbol Technologies, Inc. 487,500 8,297,250 Vishay Intertechnology, Inc. (a) 625,350 14,076,628 ----------- Electronic Equipment & Instruments Total 67,038,054 INTERNET SOFTWARE & SERVICES - 0.7% Check Point Software Technologies Ltd.(a) 350,300 8,063,906 ----------- Internet Software & Services Total 8,063,906 IT SERVICES - 1.5% CheckFree Corp. (a) 287,800 8,354,834 DST Systems, Inc. (a) 169,700 7,595,772 ----------- IT Services Total 15,950,606 SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 10.7% Altera Corp. (a) 260,000 5,740,800 Amkor Technology, Inc. (a) 659,500 10,202,465 ARM Holdings PLC, ADR (a) 928,800 6,269,400 ASML Holding NV, N.Y. Registered Shares (a) 798,300 14,576,958 Fairchild Semiconductor International, Inc. (a) 500,300 12,907,740 Microchip Technology, Inc. 675,650 19,256,025 National Semiconductor Corp. (a) 212,000 8,344,320 PMC-Sierra, Inc. (a) 231,400 4,604,860 Taiwan Semiconductor Manufacturing Co., Ltd., ADR (a) 1,194,156 12,407,281 Teradyne, Inc. (a) 494,430 12,187,700 United Microelectronics Corp., ADR (a) 1,449,600 7,552,416 ----------- Semiconductors & Semiconductor Equipment Total 114,049,965 SOFTWARE - 11.5% Adobe Systems, Inc. 155,400 5,787,096 Amdocs Ltd. (a) 607,200 16,928,736 BEA Systems, Inc. (a) 595,200 8,213,760 BMC Software, Inc. (a) 523,500 10,260,600 Fair Isaac Corp. 280,000 16,699,200 Intuit, Inc. (a) 171,625 7,613,285 Mercury Interactive Corp. (a) 222,750 10,812,285 Novell, Inc. (a) 814,200 8,288,556 PeopleSoft, Inc. (a) 379,100 8,180,978 Siebel Systems, Inc. (a) 607,105 7,928,791 Symantec Corp. (a) 209,300 8,610,602 Synopsys, Inc. (a) 89,000 2,636,180 VERITAS Software Corp. (a) 378,450 11,512,449 ----------- Software Total 123,472,518 ----------- INFORMATION TECHNOLOGY TOTAL 419,163,010 MATERIALS - 0.5% CHEMICALS - 0.5% Potash Corp. of Saskatchewan, Inc. 65,600 5,425,120 ----------- Chemicals Total 5,425,120 ----------- MATERIALS TOTAL 5,425,120 See Accompanying Notes to Financial Statements. 59 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA MID CAP GROWTH FUND SHARES VALUE ($) - ---------------------------------------------------------------------- COMMON STOCKS - (CONTINUED) TELECOMMUNICATION SERVICES - 0.8% WIRELESS TELECOMMUNICATION SERVICES - 0.8% Nextel Partners, Inc., Class A (a) 645,400 8,274,028 ----------- Wireless Telecommunication Services Total 8,274,028 ----------- TELECOMMUNICATION SERVICES TOTAL 8,274,028 TOTAL COMMON STOCKS (Cost of $826,638,797) 1,045,330,445 INVESTMENT MANAGEMENT COMPANY - 1.1% iShares MSCI Japan Index Fund (Cost of $10,785,166) 1,156,100 11,225,731 ----------- CONVERTIBLE PREFERRED STOCK - 0.0% INFORMATION TECHNOLOGY - 0.0% INTERNET SOFTWARE & SERVICES - 0.0% Network Specialists, Inc., Series A (a)(b)(c) (Cost of $3,000,000) 394,218 3,942 ----------- SHORT-TERM OBLIGATION - 1.9% PAR ($) - ------------------------------------------------------ Repurchase agreement with State Street Bank & Trust Co., dated 02/27/04, due 03/01/04 at 0.930%, collateralized by a U.S. Treasury Note maturing 08/15/12, market value $21,233,260 (repurchase proceeds $20,814,613) (Cost of $20,813,000) 20,813,000 20,813,000 ----------- TOTAL INVESTMENTS - 100.7% (COST OF $861,236,963) (d) 1,077,373,118 OTHER ASSETS & LIABILITIES, NET - (0.7)% (7,043,049) NET ASSETS - 100.0% 1,070,330,069 NOTES TO INVESTMENT PORTFOLIO: (a) Non-income producing. (b) This security is exempt from registration under Rule 144A of the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At February 29, 2004, the value of this security amounted to $3,942, which represents less than 0.1% of net assets. (c) Represents fair value as determined in good faith under the direction of the Board of Directors. (d) Cost for both financial statement and federal income tax purposes is the same. ACRONYM NAME ------- ---- ADR American Depositary Receipt See Accompanying Notes to Financial Statements. 60 INVESTMENT PORTFOLIO____________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA SMALL CAP GROWTH FUND SHARES VALUE ($) - ---------------------------------------------------------------------- COMMON STOCKS - 99.4% CONSUMER DISCRETIONARY - 14.6% AUTO COMPONENTS - 3.2% Autoliv, Inc. 292,400 12,976,712 Gentex Corp. 171,550 6,992,378 Wabtec Corp. 321,500 5,095,775 ----------- Auto Components Total 25,064,865 HOTELS, RESTAURANTS & LEISURE - 3.7% Fairmont Hotels & Resorts, Inc. 135,100 3,462,613 P.F. Chang's China Bistro, Inc. (a) 92,900 4,521,443 RARE Hospitality International, Inc. (a) 151,800 4,344,516 Ruby Tuesday, Inc. 262,600 8,319,168 Scientific Games Corp. (a) 188,900 3,194,299 WMS Industries, Inc. (a) 185,500 4,928,735 ----------- Hotels, Restaurants & Leisure Total 28,770,774 HOUSEHOLD DURABLES - 0.5% Harman International Industries, Inc. 50,700 3,954,093 ----------- Household Durables Total 3,954,093 INTERNET & CATALOG RETAIL - 0.6% Insight Enterprises, Inc. (a) 233,400 4,964,418 ----------- Internet & Catalog Retail Total 4,964,418 LEISURE EQUIPMENT & PRODUCTS - 0.2% Nautilus Group, Inc. 73,800 1,205,892 ----------- Leisure Equipment & Products Total 1,205,892 MEDIA - 3.6% Entercom Communications Corp. (a) 204,900 9,458,184 Entravision Communications Corp., Class A (a) 448,800 4,308,480 Getty Images, Inc. (a) 124,000 6,319,040 Radio One, Inc., Class D (a) 441,802 8,049,633 ----------- Media Total 28,135,337 SPECIALTY RETAIL - 2.3% Advance Auto Parts, Inc. (a) 129,200 5,096,940 Aeropostale, Inc. (a) 90,200 3,093,860 Guitar Center, Inc. (a) 111,400 4,048,276 PETsMART, Inc. 221,700 6,016,938 ----------- Specialty Retail Total 18,256,014 TEXTILES, APPAREL & LUXURY GOODS - 0.5% Columbia Sportswear Co. (a) 74,650 3,882,547 ----------- Textiles, Apparel & Luxury Goods Total 3,882,547 ----------- CONSUMER DISCRETIONARY TOTAL 114,233,940 CONSUMER STAPLES - 2.2% FOOD PRODUCTS - 0.9% SunOpta, Inc. (a) 669,300 6,833,553 ----------- Food Products Total 6,833,553 SHARES VALUE ($) - ---------------------------------------------------------------------- PERSONAL PRODUCTS - 1.3% NBTY, Inc. (a) 315,000 10,476,900 ----------- Personal Products Total 10,476,900 ----------- CONSUMER STAPLES TOTAL 17,310,453 ENERGY - 6.1% ENERGY EQUIPMENT & SERVICES - 4.1% Cal Dive International, Inc. (a) 144,700 3,508,975 Key Energy Services, Inc. (a) 581,000 7,855,120 National-Oilwell, Inc. (a) 322,600 9,584,446 Patterson-UTI Energy, Inc. (a) 161,300 5,851,964 Precision Drilling Corp. (a) 67,700 3,244,861 Varco International, Inc. (a) 99,500 1,982,040 ----------- Energy Equipment & Services Total 32,027,406 OIL & GAS - 2.0% Chesapeake Energy Corp. 309,200 3,963,944 Spinnaker Exploration Co. (a) 47,700 1,578,393 XTO Energy, Inc. 335,200 10,002,368 ----------- Oil & Gas Total 15,544,705 ----------- ENERGY TOTAL 47,572,111 FINANCIALS - 2.5% DIVERSIFIED FINANCIAL SERVICES - 0.8% Affiliated Managers Group, Inc. (a) 73,000 6,168,500 ----------- Diversified Financial Services Total 6,168,500 INSURANCE - 1.7% Allmerica Financial Corp. (a) 213,900 7,888,632 ProAssurance Corp. (a) 154,900 5,232,522 ----------- Insurance Total 13,121,154 ----------- FINANCIALS TOTAL 19,289,654 HEALTH CARE - 15.5% BIOTECHNOLOGY - 2.1% Alkermes, Inc. (a) 345,200 4,919,100 Connetics Corp. (a) 150,900 3,324,327 ICOS Corp. (a) 161,950 6,199,446 OraSure Technologies, Inc. (a) 182,700 1,600,452 ----------- Biotechnology Total 16,043,325 HEALTH CARE EQUIPMENT & SUPPLIES - 3.3% ArthroCare Corp. (a) 153,800 3,668,130 Dade Behring Holdings, Inc. (a) 111,900 4,571,115 Kinetic Concepts, Inc. (a) 33,800 1,363,830 Kyphon, Inc. (a) 95,200 2,403,800 Regeneration Technologies, Inc. (a) 348,100 3,836,062 ResMed, Inc. (a) 128,800 6,061,328 Wilson Greatbatch Technologies, Inc. (a) 98,410 3,565,394 ----------- Health Care Equipment & Supplies Total 25,469,659 See Accompanying Notes to Financial Statements. 61 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA SMALL CAP GROWTH FUND SHARES VALUE ($) - ---------------------------------------------------------------------- COMMON STOCKS - (CONTINUED) HEALTH CARE - (CONTINUED) HEALTH CARE PROVIDERS & SERVICES - 8.7% Cerner Corp. (a) 141,800 6,355,476 Community Health Systems, Inc. (a) 140,400 3,938,220 DaVita, Inc. (a) 245,331 11,165,014 Henry Schein, Inc. (a) 161,551 11,550,897 ICON PLC, ADR (a) 181,850 6,066,516 Kindred Healthcare, Inc. (a) 125,200 7,370,524 Renal Care Group, Inc. (a) 235,400 10,983,764 Sierra Health Services, Inc (a) 152,700 5,104,761 United Surgical Partners International, Inc. (a) 162,200 5,915,434 ----------- Health Care Providers & Services Total 68,450,606 PHARMACEUTICALS - 1.4% MGI Pharma, Inc. (a) 144,200 7,083,104 NPS Pharmaceuticals, Inc. (a) 141,400 4,237,758 ----------- Pharmaceuticals Total 11,320,862 ----------- HEALTH CARE TOTAL 121,284,452 INDUSTRIALS - 13.3% AEROSPACE & DEFENSE - 1.6% Armor Holdings, Inc. (a) 221,200 6,494,432 United Defense Industries, Inc. (a) 191,600 5,872,540 ----------- Aerospace & Defense Total 12,366,972 AIR FREIGHT & LOGISTICS - 0.6% UTI Worldwide, Inc. 100,700 4,548,619 ----------- Air Freight & Logistics Total 4,548,619 AIRLINES - 0.6% SkyWest, Inc. 255,100 4,936,185 ----------- Airlines Total 4,936,185 COMMERCIAL SERVICES & SUPPLIES - 6.3% Corinthian Colleges, Inc. (a) 161,000 9,684,150 Corporate Executive Board Co. 156,260 7,792,686 Education Management Corp. (a) 459,942 14,722,743 Resources Connection, Inc. (a) 224,700 7,242,081 Roto-Rooter, Inc. 38,400 2,166,528 Tetra Tech, Inc. (a) 364,800 7,770,240 ----------- Commercial Services & Supplies Total 49,378,428 CONSTRUCTION & ENGINEERING - 0.3% Chicago Bridge & Iron Co. NV, N.Y. Registered Shares 73,200 2,053,260 ----------- Construction & Engineering Total 2,053,260 ELECTRICAL EQUIPMENT - 2.1% Artesyn Technologies, Inc. (a) 608,300 6,630,470 Cherokee International Corp. (a) 74,400 1,216,440 Global Power Equipment Group, Inc. (a) 67,300 725,494 Power-One, Inc. (a) 430,230 5,274,620 Roper Industries, Inc. 52,700 2,558,585 ----------- Electrical Equipment Total 16,405,609 SHARES VALUE ($) - ---------------------------------------------------------------------- MACHINERY - 1.8% Albany International Corp., Class A 179,000 5,713,680 Kennametal, Inc. 112,400 4,879,284 Terex Corp. (a) 114,200 4,000,426 ----------- Machinery Total 14,593,390 ----------- INDUSTRIALS TOTAL 104,282,463 INFORMATION TECHNOLOGY - 40.3% COMMUNICATIONS EQUIPMENT - 8.9% Advanced Fibre Communications, Inc. (a) 299,300 7,338,836 Aspect Communications Corp. (a) 451,400 8,152,284 Extreme Networks (a) 472,200 3,801,210 F5 Networks, Inc. (a) 203,200 6,723,888 Foundry Networks, Inc. (a) 312,410 7,372,876 Ixia (a) 540,700 6,380,260 NetScreen Technologies, Inc. (a) 221,700 7,859,265 Polycom, Inc. (a) 550,600 12,151,742 Powerwave Technologies, Inc. (a) 645,000 6,366,150 Westell Technologies, Inc., Class A (a) 527,900 4,043,714 ----------- Communications Equipment Total 70,190,225 COMPUTERS & PERIPHERALS - 1.6% Electronics for Imaging, Inc. (a) 480,820 12,198,403 ----------- Computers & Peripherals Total 12,198,403 ELECTRONIC EQUIPMENT & INSTRUMENTS - 7.1% Amphenol Corp., Class A (a) 298,955 18,490,367 AVX Corp. 774,100 13,035,844 Electro Scientific Industries, Inc. (a) 187,700 4,480,399 KEMET Corp. (a) 399,400 5,879,168 Merix Corp. (a) 233,200 5,736,720 National Instruments Corp. 176,790 6,109,862 RadiSys Corp. (a) 86,400 1,772,064 ----------- Electronic Equipment & Instruments Total 55,504,424 INTERNET SOFTWARE & SERVICES - 3.1% Altiris, Inc. (a) 73,900 2,013,775 Ask Jeeves, Inc. (a) 375,600 7,583,364 CNET Networks, Inc. (a) 711,400 7,071,316 DoubleClick, Inc. (a) 717,100 7,780,535 ----------- Internet Software & Services Total 24,448,990 IT SERVICES - 4.4% Anteon International Corp. (a) 137,500 4,021,875 CACI International, Inc., Class A (a) 133,400 5,916,290 CheckFree Corp. (a) 200,100 5,808,903 Cognizant Technology Solutions Corp. (a) 120,100 5,697,544 Global Payments, Inc. 118,136 5,110,563 IDX Systems Corp. (a) 115,100 4,003,178 MPS Group, Inc. (a) 389,600 3,798,600 ----------- IT Services Total 34,356,953 See Accompanying Notes to Financial Statements. 62 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA SMALL CAP GROWTH FUND SHARES VALUE ($) - ---------------------------------------------------------------------- COMMON STOCKS - (CONTINUED) INFORMATION TECHNOLOGY - (CONTINUED) SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 7.9% ASE Test Ltd. (a) 530,200 6,558,574 Axcelis Technologies, Inc. (a) 388,400 4,443,296 ChipPAC, Inc., Class A (a) 648,100 5,528,293 Conexant Systems, Inc. (a) 732,900 5,386,815 Credence Systems Corp. (a) 549,600 6,237,960 Integrated Device Technology, Inc. (a) 493,800 8,142,762 Lattice Semiconductor Corp. (a) 395,600 4,086,548 ON Semiconductor Corp. (a) 1,023,000 8,654,580 TriQuint Semiconductor, Inc. (a) 626,600 5,012,800 Ultratech, Inc. (a) 305,400 7,576,974 ----------- Semiconductors & Semiconductor Equipment Total 61,628,602 SOFTWARE - 7.3% Agile Software Corp. (a) 206,000 1,932,280 Amdocs Ltd. (a) 109,600 3,055,648 Autodesk, Inc. 145,400 4,165,710 Citrix Systems, Inc. (a) 284,900 6,034,182 Embarcadero Technologies, Inc. (a) 297,200 3,649,616 Fair Isaac Corp. 243,375 14,514,885 Macromedia, Inc. (a) 395,300 8,103,650 Manhattan Associates, Inc. (a) 203,800 5,840,908 Quest Software, Inc. (a) 378,200 5,964,214 Verity, Inc. (a) 251,800 4,167,290 ----------- Software Total 57,428,383 ----------- INFORMATION TECHNOLOGY TOTAL 315,755,980 MATERIALS - 3.2% CHEMICALS - 1.2% OM Group, Inc. (a) 302,300 9,286,656 ----------- Chemicals Total 9,286,656 METALS & MINING - 2.0% Arch Coal, Inc. 59,000 1,727,520 GrafTech International Ltd. (a) 561,200 7,615,484 Massey Energy Co. 88,100 1,856,267 Steel Dynamics, Inc. (a) 206,300 5,002,775 ----------- Metals & Mining Total 16,202,046 ----------- MATERIALS TOTAL 25,488,702 TELECOMMUNICATION SERVICES - 1.7% DIVERSIFIED TELECOMMUNICATION SERVICES - 0.7% Covad Communications Group, Inc. (a) 580,500 1,921,455 PTEK Holdings, Inc. (a) 399,000 3,942,120 ----------- Diversified Telecommunication Services Total 5,863,575 SHARES VALUE ($) - ---------------------------------------------------------------------- WIRELESS TELECOMMUNICATION SERVICES - 1.0% Wireless Facilities, Inc. (a) 604,100 7,895,587 ----------- Wireless Telecommunication Services Total 7,895,587 ----------- TELECOMMUNICATION SERVICES TOTAL 13,759,162 TOTAL COMMON STOCKS (Cost of $618,931,435) 778,976,917 SHORT-TERM OBLIGATION - 2.0% PAR ($) - ---------------------------------------------------------------------- Repurchase agreement with State Street Bank & Trust Co., dated 02/27/04, due 03/01/04 at 0.930%, collateralized by a U.S. Treasury Note maturing 04/15/04, market value $16,275,446 (repurchase proceeds $15,957,237) (Cost of $15,956,000) 15,956,000 15,956,000 ----------- TOTAL INVESTMENTS - 101.4% (COST OF $634,887,435) (b) 794,932,917 OTHER ASSETS & LIABILITIES, NET - (1.4)% (10,888,110) NET ASSETS - 100.0% 784,044,807 NOTES TO INVESTMENT PORTFOLIO: (a) Non-income producing. (b) Cost for both financial statement and federal income tax purposes is the same. ACRONYM NAME ------- ---- ADR American Depositary Receipt See Accompanying Notes to Financial Statements. 63 INVESTMENT PORTFOLIO____________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA REAL ESTATE EQUITY FUND SHARES VALUE ($) - ---------------------------------------------------------------------- COMMON STOCKS - 95.8% CONSUMER DISCRETIONARY - 5.3% HOTELS, RESTAURANTS & LEISURE - 5.3% Hilton Hotels Corp. 1,211,700 19,423,551 La Quinta Corp. (a) 1,856,500 14,350,745 Marriott International, Inc., Class A 307,700 13,732,651 Starwood Hotels & Resorts Worldwide, Inc. 273,800 10,680,938 ----------- Hotels, Restaurants & Leisure Total 58,187,885 ----------- CONSUMER DISCRETIONARY TOTAL 58,187,885 FINANCIALS - 78.8% REAL ESTATE - 78.8% Alexandria Real Estate Equities, Inc., REIT 663,100 40,701,078 AMB Property Corp., REIT 467,400 16,555,308 American Financial Realty Trust, REIT 563,600 10,285,700 Apartment Investment & Management Co., Class A, REIT 352,300 11,414,520 Archstone-Smith Trust, REIT 644,771 18,053,588 AvalonBay Communities, Inc., REIT 348,800 17,572,544 Boston Properties, Inc., REIT 370,500 18,980,715 Brookfield Properties Corp. 412,600 12,361,496 CarrAmerica Realty Corp., REIT 275,500 8,871,100 CenterPoint Properties Trust, REIT 257,300 19,902,155 Chelsea Property Group, Inc., REIT 214,400 12,724,640 Cousins Properties, Inc., REIT 1,298,850 39,874,695 Duke Realty Corp., REIT 1,146,000 37,130,400 Equity Office Properties Trust, REIT 934,537 26,671,686 Equity Residential, REIT 608,506 18,103,053 First Industrial Realty Trust, Inc., REIT 293,400 11,031,840 General Growth Properties, Inc., REIT 1,844,880 57,670,949 iStar Financial, Inc., REIT 1,134,350 47,472,548 Kimco Realty Corp., REIT 558,100 26,202,795 Liberty Property Trust, REIT 698,200 29,519,896 Manufactured Home Communities, Inc., REIT 179,900 6,017,655 Newcastle Investment Corp., REIT 623,700 17,987,508 Pan Pacific Retail Properties, Inc., REIT 287,800 14,246,100 Parkway Properties, Inc., REIT 93,100 4,403,630 Prentiss Properties Trust, REIT 204,000 7,109,400 ProLogis, REIT 1,372,406 45,467,811 Public Storage, Inc., REIT 617,032 29,450,937 Reckson Associates Realty Corp., REIT 234,000 6,266,520 Regency Centers Corp., REIT 901,000 37,796,950 Rouse Co., REIT 778,400 38,920,000 Simon Property Group, Inc., REIT 1,193,056 65,009,621 SL Green Realty Corp., REIT 382,200 16,816,800 St. Joe Co. 715,000 29,300,700 Taubman Centers, Inc., REIT 946,000 22,514,800 United Dominion Realty Trust, Inc., REIT 663,400 12,518,358 Vornado Realty Trust, REIT 385,900 21,957,710 ----------- Real Estate Total 856,885,206 ----------- FINANCIALS TOTAL 856,885,206 SHARES VALUE ($) - ---------------------------------------------------------------------- MATERIALS - 11.7% CONTAINERS & PACKAGING - 2.5% Smurfit-Stone Container Corp. (a) 970,400 18,010,624 Temple-Inland, Inc. 139,200 9,068,880 ----------- Containers & Packaging Total 27,079,504 PAPER & FOREST PRODUCTS - 9.2% Bowater, Inc. 916,400 42,062,760 International Paper Co. 705,500 31,225,430 MeadWestvaco Corp. 537,700 15,754,610 Weyerhaeuser Co. 166,100 10,838,025 ----------- Paper & Forest Products Total 99,880,825 ----------- MATERIALS TOTAL 126,960,329 TOTAL COMMON STOCKS (Cost of $706,712,182) 1,042,033,420 INCOME DEPOSIT SECURITY - 1.0% CONSUMER DISCRETIONARY - 1.0% HOTELS, RESTAURANTS & LEISURE - 1.0% Volume Services America Holdings, Inc. (Cost of $9,987,045) 665,500 11,513,150 ----------- SHORT-TERM OBLIGATION - 3.4% PAR ($) - ---------------------------------------------------------------------- Repurchase agreement with State Street Bank & Trust Co., dated 02/27/04, due 03/01/04 at 0.930%, collateralized by a U.S. Treasury Bond maturing 11/15/10, market value $37,750,751 (repurchase proceeds $37,012,868) (Cost of $37,010,000) 37,010,000 37,010,000 ----------- TOTAL INVESTMENTS - 100.2% (COST OF $753,709,227) (b) 1,090,556,570 OTHER ASSETS & LIABILITIES, NET - (0.2)% (2,580,862) NET ASSETS - 100.0% 1,087,975,708 NOTES TO INVESTMENT PORTFOLIO: (a) Non-income producing. (b) Cost for both financial statement and federal income tax purposes is the same. ACRONYM NAME ------- ---- REIT Real Estate Investment Trust See Accompanying Notes to Financial Statements. 64 INVESTMENT PORTFOLIO____________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA TECHNOLOGY FUND SHARES VALUE ($) - ---------------------------------------------------------------------- COMMON STOCKS - 98.5% CONSUMER DISCRETIONARY - 4.0% INTERNET & CATALOG RETAIL - 0.9% eBay, Inc. (a) 5,000 344,300 ----------- Internet & Catalog Retail Total 344,300 LEISURE EQUIPMENT & PRODUCTS - 0.6% Nautilus Group, Inc. 15,000 245,100 ----------- Leisure Equipment & Products Total 245,100 MEDIA - 2.5% Netflix, Inc. (a) 7,710 265,224 XM Satellite Radio Holdings, Inc., Class A (a) 30,350 742,968 ----------- Media Total 1,008,192 ----------- CONSUMER DISCRETIONARY TOTAL 1,597,592 CONSUMER STAPLES - 0.3% FOOD PRODUCTS - 0.3% SunOpta, Inc. (a) 14,000 142,940 ----------- Food Products Total 142,940 ----------- CONSUMER STAPLES TOTAL 142,940 HEALTH CARE - 5.2% BIOTECHNOLOGY - 4.2% Alexion Pharmaceuticals, Inc. (a) 12,000 274,680 Amylin Pharmaceuticals, Inc. (a) 15,000 343,800 Cepheid, Inc. (a) 10,900 110,199 Cubist Pharmaceuticals, Inc. (a) 15,000 168,300 Nabi Biopharmaceuticals (a) 25,000 352,250 Onyx Pharmaceuticals, Inc. (a) 10,000 368,000 Strategic Diagnostics, Inc. (a) 22,500 92,700 ----------- Biotechnology Total 1,709,929 HEALTH CARE EQUIPMENT & SUPPLIES - 0.4% Orthovita, Inc. (a) 50,000 177,000 ----------- Health Care Equipment & Supplies Total 177,000 PHARMACEUTICALS - 0.6% Ligand Pharmaceuticals, Inc., Class B (a) 15,000 230,850 ----------- Pharmaceuticals Total 230,850 ----------- HEALTH CARE TOTAL 2,117,779 INDUSTRIALS - 0.9% COMMERCIAL SERVICES & SUPPLIES - 0.9% Alliance Data Systems Corp. (a) 12,000 359,400 ----------- Commercial Services & Supplies Total 359,400 ----------- INDUSTRIALS TOTAL 359,400 SHARES VALUE ($) - ---------------------------------------------------------------------- INFORMATION TECHNOLOGY - 77.0% COMMUNICATIONS EQUIPMENT - 16.4% ADC Telecommunications, Inc. (a) 85,000 255,000 ADTRAN, Inc. 10,000 325,600 Alvarion Ltd. (a) 10,000 144,500 Aspect Communications Corp. (a) 7,500 135,450 Avaya, Inc. (a) 2,600 44,590 Brocade Communications Systems, Inc. (a) 25,000 174,250 Comverse Technology, Inc. (a) 20,000 394,400 CyberGuard Corp. (a) 12,000 131,280 ECI Telecom Ltd. (a) 225,000 1,550,025 F5 Networks, Inc. (a) 6,200 205,158 Foundry Networks, Inc. (a) 8,000 188,800 Juniper Networks, Inc. (a) 15,000 388,050 NetScreen Technologies, Inc. (a) 6,500 230,425 Network Equipment Technologies, Inc. (a) 10,500 135,765 Oplink Communications, Inc. (a) 181,000 479,650 Packeteer, Inc. (a) 10,000 144,600 Paradyne Networks, Inc. (a) 25,000 105,000 QLogic Corp. (a) 8,300 346,940 QUALCOMM, Inc. 10,000 634,500 Sonus Networks, Inc. (a) 66,000 391,380 Symmetricom, Inc. (a) 23,200 212,976 ----------- Communications Equipment Total 6,618,339 COMPUTERS & PERIPHERALS - 3.2% Dell, Inc. (a) 10,600 346,090 Gateway, Inc. (a) 35,000 190,050 Hypercom Corp. (a) 25,000 172,000 Novatel Wireless, Inc. (a) 10,000 192,500 Quantum Corp. (a) 40,000 154,000 Sigma Designs, Inc. (a) 16,900 127,933 Silicon Graphics, Inc. (a) 30,000 96,600 ----------- Computers & Peripherals Total 1,279,173 ELECTRONIC EQUIPMENT & INSTRUMENTS - 2.5% Agilent Technologies, Inc. (a) 20,500 700,895 Oki Electric Industry Co., Ltd. (Japan) (a) 45,000 200,275 Symbol Technologies, Inc. 6,000 102,120 ----------- Electronic Equipment & Instruments Total 1,003,290 INTERNET SOFTWARE & SERVICES - 6.2% Altiris, Inc. (a) 5,000 136,250 Ask Jeeves, Inc. (a) 9,200 185,748 DoubleClick, Inc. (a) 18,000 195,300 j2 Global Communications, Inc. (a) 14,500 318,420 Lastminute.com PLC, ADR (a) 5,000 105,000 SINA Corp., Registered Shares (a) 5,300 234,159 SupportSoft, Inc. (a) 15,000 182,700 United Online, Inc. (a) 22,500 387,450 VeriSign, Inc. (a) 16,000 278,560 Yahoo!, Inc. (a) 10,900 483,960 ----------- Internet Software & Services Total 2,507,547 See Accompanying Notes to Financial Statements. 65 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA TECHNOLOGY FUND SHARES VALUE ($) - ---------------------------------------------------------------------- COMMON STOCKS - (CONTINUED) INFORMATION TECHNOLOGY - (CONTINUED) IT SERVICES - 6.3% Affiliated Computer Services, Inc., Class A (a) 6,000 289,560 Carreker Corp. (a) 11,000 145,750 Cognizant Technology Solutions Corp. (a) 13,500 640,440 Computer Sciences Corp. (a) 15,000 626,850 Global Payments, Inc. 4,000 173,040 Infosys Technologies Ltd., ADR 4,000 336,120 Redback Networks, Inc. (a) 16,000 126,560 Wipro Ltd., ADR 4,500 185,445 ----------- IT Services Total 2,523,765 OFFICE ELECTRONICS - 0.4% Zebra Technologies Corp., Class A (a) 2,500 178,700 ----------- Office Electronics Total 178,700 SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 31.7% Advanced Power Technology, Inc. (a) 14,000 147,000 ASML Holding NV, N.Y. Registered Shares (a) 26,600 485,716 Atmel Corp. (a) 14,000 96,880 Broadcom Corp., Class A (a) 15,100 612,758 FormFactor, Inc. (a) 100,000 2,034,000 Genesis Microchip, Inc. (a) 21,900 361,788 GlobespanVirata, Inc. (a) 16,000 141,920 Hifn, Inc. (a) 13,000 169,650 Marvell Technology Group Ltd. (a) 20,850 949,300 Microchip Technology, Inc. 14,000 399,000 MIPS Technologies, Inc., (a) 95,500 539,575 NVIDIA Corp. (a) 13,500 300,375 O2Micro International Ltd. (a) 8,000 145,280 ON Semiconductor Corp. (a) 50,000 423,000 PDF Solutions, Inc. (a) 15,000 173,250 PLX Technology, Inc. (a) 27,000 261,900 Power Integrations, Inc. (a) 3,148 92,803 QuickLogic Corp. (a) 25,000 95,500 Rambus, Inc. (a) 7,200 233,208 Samsung Electronics Co., Ltd., GDR (b) 6,000 1,401,000 Silicon Image, Inc. (a) 33,000 367,950 Silicon Laboratories, Inc., (a) 5,000 281,850 SRS Labs, Inc. (a) 29,000 256,940 Taiwan Semiconductor Manufacturing Co., Ltd., ADR (a) 15,000 155,850 Transmeta Corp. (a) 40,000 144,800 ZiLOG, Inc. (a) 375,800 2,487,796 ----------- Semiconductors & Semiconductor Equipment Total 12,759,089 SHARES VALUE ($) - ---------------------------------------------------------------------- SOFTWARE - 10.3% Agile Software Corp. (a) 12,000 112,560 Amdocs Ltd. (a) 7,000 195,160 Citrix Systems, Inc. (a) 9,000 190,620 Computer Associates International, Inc. 15,000 398,400 Embarcadero Technologies, Inc. (a) 15,000 184,200 Geac Computer Corp., Ltd. (Canada) (a) 35,000 204,751 Microsoft Corp. 14,000 371,000 Novell, Inc. (a) 45,000 458,100 Oracle Corp. (a) 32,000 412,160 Peregrine Systems, Inc. (a) 12,000 282,000 Red Hat, Inc. (a) 10,000 180,800 SAP AG, ADR 6,000 237,600 SERENA Software, Inc. (a) 10,000 207,100 Synopsys, Inc. (a) 6,000 176,880 Synplicity, Inc. (a) 20,000 143,600 VERITAS Software Corp. (a) 7,000 212,940 Verity, Inc. (a) 12,000 198,600 ----------- Software Total 4,166,471 ----------- INFORMATION TECHNOLOGY TOTAL 31,036,374 MATERIALS - 1.0% CHEMICALS - 1.0% Landec Corp. (a) 12,000 96,000 Symyx Technologies, Inc. (a) 5,500 146,850 Zeon Corp. (Japan) 23,000 164,075 ----------- Chemicals Total 406,925 ----------- MATERIALS TOTAL 406,925 TELECOMMUNICATION SERVICES - 10.1% DIVERSIFIED TELECOMMUNICATION SERVICES - 2.3% Covad Communications Group, Inc. (a) 60,000 198,600 Telefonaktiebolaget LM Ericsson, ADR (a) 25,000 725,500 ----------- Diversified Telecommunication Services Total 924,100 WIRELESS TELECOMMUNICATION SERVICES - 7.8% American Tower Corp., Class A (a) 20,000 221,000 Crown Castle International Corp. (a) 29,000 349,450 LCC International, Inc., Class A (a) 30,000 196,500 Millicom International Cellular SA (a) 44,000 985,160 Mobile Telesystems, ADR (a) 4,000 429,000 VimpelCom, ADR (a) 9,000 764,010 Wireless Facilities, Inc. (a) 15,000 196,050 ----------- Wireless Telecommunication Services Total 3,141,170 ----------- TELECOMMUNICATION SERVICES TOTAL 4,065,270 TOTAL COMMON STOCKS (Cost of $34,792,727) 39,726,280 See Accompanying Notes to Financial Statements. 66 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA TECHNOLOGY FUND PAR ($) VALUE ($) - ---------------------------------------------------------------------- SHORT-TERM OBLIGATIONS - 0.7% Repurchase agreement with State Street Bank & Trust Co., dated 02/27/04, due 03/01/04 at 0.930%, collateralized by a U.S. Treasury Note maturing 09/30/05, market value $272,000 (repurchase proceeds $265,021) (Cost of $265,000) 265,000 265,000 ----------- TOTAL INVESTMENTS - 99.2% (COST OF $35,057,727) (C) 39,991,280 OTHER ASSETS & LIABILITIES, NET - 0.8% 324,889 NET ASSETS - 100.0% 40,316,169 NOTES TO INVESTMENT PORTFOLIO: (a) Non-income producing. (b) This security is exempt from registration under Rule 144A of the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At February 29, 2004, the value of this security amounted to $1,401,000, which represents 3.5% of net assets. (c) Cost for both financial statement and federal income tax purposes is the same. ACRONYM NAME ------- ---- ADR American Depositary Receipt GDR Global Depositary Receipt See Accompanying Notes to Financial Statements. 67 INVESTMENT PORTFOLIO____________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA STRATEGIC INVESTOR FUND SHARES VALUE ($) - ---------------------------------------------------------------------- COMMON STOCKS - 79.9% CONSUMER DISCRETIONARY - 11.4% AUTO COMPONENTS - 1.6% Modine Manufacturing Co. 62,500 1,778,125 Nokian Renkaat Oyj (Finland) 35,800 3,038,904 Visteon Corp. 75,000 757,500 ----------- Auto Components Total 5,574,529 AUTOMOBILES - 0.1% Fiat S.p.A., ADR 50,000 388,500 ----------- Automobiles Total 388,500 HOTELS, RESTAURANTS & LEISURE - 1.6% Caesars Entertainment, Inc. (a) 125,000 1,537,500 California Pizza Kitchen, Inc. (a) 43,200 792,720 Fairmont Hotels & Resorts, Inc. 50,000 1,281,500 McDonald's Corp. 65,000 1,839,500 ----------- Hotels, Restaurants & Leisure Total 5,451,220 HOUSEHOLD DURABLES - 1.9% Cavco Industries, Inc. (a) 20,000 760,000 Ekornes ASA (Norway) 100,000 1,953,292 Makita Corp., ADR 62,000 737,800 Matsushita Electric Industrial Co., Ltd., ADR 100,000 1,450,000 Stanley Works 45,000 1,742,850 ----------- Household Durables Total 6,643,942 LEISURE EQUIPMENT & PRODUCTS - 0.2% Hasbro, Inc. 30,000 656,100 ----------- Leisure Equipment & Products Total 656,100 MEDIA - 3.1% Belo Corp., Class A 47,500 1,325,250 Comcast Corp., Class A (a) 32,500 949,650 Entravision Communications Corp., Class A (a) 100,000 960,000 Fox Entertainment Group, Inc., Class A (a) 40,000 1,160,800 Journal Communications, Inc., Class A 30,000 549,900 Martha Stewart Living Omnimedia, Inc., Class A (a) 75,000 1,089,750 Media General, Inc., Class A 27,500 1,782,000 Time Warner, Inc. (a) 100,000 1,725,000 Walt Disney Co. 40,000 1,061,200 ----------- Media Total 10,603,550 MULTILINE RETAIL - 2.2% Big Lots, Inc. (a) 75,000 1,080,000 Dillard's, Inc., Class A 100,000 1,760,000 ITO-Yokado Co., Ltd. (Japan) 40,000 1,509,157 Kohl's Corp. (a) 30,000 1,545,000 Stockmann Oyj, Class B (Finland) 70,000 1,646,670 ----------- Multiline Retail Total 7,540,827 SHARES VALUE ($) - ---------------------------------------------------------------------- SPECIALTY RETAIL - 0.7% American Eagle Outfitters, Inc. (a) 30,000 731,700 CarMax, Inc. (a) 30,000 1,020,000 Circuit City Stores, Inc. 75,000 838,500 ----------- Specialty Retail Total 2,590,200 ----------- CONSUMER DISCRETIONARY TOTAL 39,448,868 CONSUMER STAPLES - 5.1% BEVERAGES - 1.4% Coca-Cola Co. 10,000 499,600 Coca-Cola Femsa SA de CV, ADR 92,500 2,199,650 Companhia de Bebidas das Americas, ADR 80,000 2,152,000 ----------- Beverages Total 4,851,250 FOOD & STAPLES RETAILING - 1.4% Albertson's, Inc. 34,200 846,108 Longs Drug Stores Corp. 42,500 887,825 United Natural Foods, Inc. (a) 30,000 1,384,500 Walgreen Co. 52,500 1,872,150 ----------- Food & Staples Retailing Total 4,990,583 FOOD PRODUCTS - 1.8% Archer-Daniels-Midland Co. 30,000 516,000 Del Monte Foods Co. (a) 50,000 545,000 Delta & Pine Land Co. 30,000 765,000 General Mills, Inc. 30,000 1,379,400 Interstate Bakeries Corp. 57,500 862,500 Nestle SA, Registered Shares (Switzerland) 5,000 1,325,630 Tyson Foods, Inc., Class A 62,500 992,500 ----------- Food Products Total 6,386,030 HOUSEHOLD PRODUCTS - 0.5% Kimberly-Clark Corp. 25,000 1,617,000 ----------- Household Products Total 1,617,000 ----------- CONSUMER STAPLES TOTAL 17,844,863 ENERGY - 8.4% ENERGY EQUIPMENT & SERVICES - 4.8% BJ Services Co. (a) 30,000 1,298,700 Core Laboratories NV (a) 75,000 1,473,750 GlobalSantaFe Corp. 47,500 1,401,250 Grant Prideco, Inc. (a) 92,500 1,403,225 Halliburton Co. 82,500 2,636,700 Schlumberger Ltd. 47,500 3,063,275 Transocean, Inc. (a) 100,000 2,948,000 Varco International, Inc. (a) 45,000 896,400 Willbros Group, Inc. (a) 100,000 1,550,000 ----------- Energy Equipment & Services Total 16,671,300 OIL & GAS - 3.6% Anadarko Petroleum Corp. 20,000 1,025,000 BP PLC, ADR 52,500 2,583,000 ConocoPhillips 20,000 1,377,400 See Accompanying Notes to Financial Statements. 68 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA STRATEGIC INVESTOR FUND SHARES VALUE ($) - ---------------------------------------------------------------------- COMMON STOCKS - (CONTINUED) ENERGY - (CONTINUED) OIL & GAS - (CONTINUED) Devon Energy Corp. 25,000 1,419,500 Energy Partners Ltd. (a) 50,000 687,000 Exxon Mobil Corp. 30,000 1,265,100 Newfield Exploration Co. (a) 30,000 1,406,400 Stelmar Shipping Ltd. (a) 50,000 1,436,000 Unocal Corp. 30,000 1,140,000 ----------- Oil & Gas Total 12,339,400 ----------- ENERGY TOTAL 29,010,700 FINANCIALS - 12.5% COMMERCIAL BANKS - 5.2% Allied Irish Banks PLC, ADR 30,000 924,000 Banco Bradesco SA, ADR 45,000 1,139,850 Bank One Corp. 47,500 2,564,050 Columbia Banking Systems, Inc. 50,000 1,240,500 Fifth Third Bancorp 37,500 2,100,750 Freddie Mac 20,000 1,238,400 HSBC Holdings PLC, ADR 25,000 2,043,750 MGIC Investment Corp. 20,000 1,323,600 Mitsubishi Tokyo Financial Group, Inc., ADR 200,000 1,560,000 Radian Group, Inc. 32,500 1,420,250 Shinsei Bank Ltd. (Japan) 37,000 273,434 U.S. Bancorp 75,000 2,139,750 ----------- Commercial Banks Total 17,968,334 DIVERSIFIED FINANCIAL SERVICES - 4.3% Bank of New York Co., Inc. 50,000 1,650,000 Citigroup, Inc. 52,500 2,638,650 GATX Corp. 77,500 1,822,800 ICICI Bank Ltd., ADR 30,000 447,000 Instinet Group, Inc. (a) 125,000 883,750 J.P. Morgan Chase & Co. 67,500 2,768,850 Mellon Financial Corp. 30,000 971,400 Nikko Cordial Corp. (Japan) 150,000 822,802 Nomura Holdings, Inc., ADR 75,000 1,197,000 Piper Jaffray Companies, Inc. (a) 33,350 1,718,192 ----------- Diversified Financial Services Total 14,920,444 INSURANCE - 2.2% Allstate Corp. 50,000 2,281,500 Assurant, Inc. (a) 37,400 962,676 St. Paul Companies, Inc. 37,500 1,602,750 Wesco Financial Corp. 7,500 2,870,625 ----------- Insurance Total 7,717,551 REAL ESTATE - 0.8% MI Developments, Inc., Class A (a) 50,000 1,468,000 Post Properties, Inc. 50,000 1,426,000 ----------- Real Estate Total 2,894,000 ----------- FINANCIALS TOTAL 43,500,329 SHARES VALUE ($) - ---------------------------------------------------------------------- HEALTH CARE - 9.2% BIOTECHNOLOGY - 0.7% Biogen Idec, Inc. (a) 40,000 2,218,000 ----------- Biotechnology Total 2,218,000 HEALTH CARE EQUIPMENT & SUPPLIES - 1.5% Applera Corp. - Applied Biosystems Group 60,000 1,368,000 Baxter International, Inc. 42,500 1,237,600 Cytyc Corp. (a) 62,500 1,030,000 Haemonetics Corp. (a) 50,000 1,449,500 ----------- Health Care Equipment & Supplies Total 5,085,100 HEALTH CARE PROVIDERS & SERVICES - 2.3% AmerisourceBergen Corp. 20,000 1,160,600 Anthem, Inc. (a) 15,000 1,289,250 Genesis HealthCare Corp. (a) 40,000 1,090,000 McKesson Corp. 40,000 1,092,400 National Dentex Corp. (a) 13,719 370,139 Quest Diagnostics, Inc. (a) 30,000 2,486,100 Tenet Healthcare Corp. (a) 50,000 601,000 ----------- Health Care Providers & Services Total 8,089,489 PHARMACEUTICALS - 4.7% Abbott Laboratories 50,000 2,140,000 Bristol-Myers Squibb Co. 62,500 1,738,750 Elan Corp. PLC, ADR (a) 50,000 721,000 Gedeon Richter Ltd. (Hungary) 20,000 2,285,937 Novartis AG, ADR 20,000 883,000 Pfizer, Inc. 86,200 3,159,230 Schering-Plough Corp. 75,000 1,347,000 Shire Pharmaceuticals Group PLC, ADR (a) 47,500 1,468,700 Valeant Pharmaceuticals International 75,000 1,644,750 Wyeth 25,000 987,500 ----------- Pharmaceuticals Total 16,375,867 ----------- HEALTH CARE TOTAL 31,768,456 INDUSTRIALS - 10.2% AEROSPACE & DEFENSE - 0.2% Raytheon Co. 25,000 760,000 ----------- Aerospace & Defense Total 760,000 COMMERCIAL SERVICES & SUPPLIES - 3.7% Allied Waste Industries, Inc. (a) 50,000 631,500 Avery Dennison Corp. 25,000 1,584,250 Cendant Corp. 100,000 2,270,000 Central Parking Corp. 37,500 718,500 Copart, Inc. (a) 85,000 1,669,400 G&K Services, Inc., Class A 30,000 1,090,200 Ionics, Inc. (a) 25,000 695,000 Kroll, Inc. (a) 50,000 1,173,000 R.R. Donnelley & Sons Co. 47,500 1,508,600 Waste Management, Inc. 55,000 1,567,500 ----------- Commercial Services & Supplies Total 12,907,950 See Accompanying Notes to Financial Statements. 69 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA STRATEGIC INVESTOR FUND SHARES VALUE ($) - ---------------------------------------------------------------------- COMMON STOCKS - (CONTINUED) INDUSTRIALS - (CONTINUED) CONSTRUCTION & ENGINEERING - 0.5% Shaw Group, Inc. (a) 40,000 481,600 URS Corp. (a) 40,000 1,224,000 ----------- Construction & Engineering Total 1,705,600 ELECTRICAL EQUIPMENT - 0.5% Thomas & Betts Corp. (a) 75,000 1,619,250 ----------- Electrical Equipment Total 1,619,250 INDUSTRIAL CONGLOMERATES - 1.6% 3M Co. 65,000 5,071,300 Gammon Lake Resources, Inc. (a) 75,000 381,750 ----------- Industrial Conglomerates Total 5,453,050 MACHINERY - 3.5% AGCO Corp. (a) 75,000 1,398,750 Caterpillar, Inc. 30,000 2,272,500 CNH Global NV 30,000 555,300 Eaton Corp. 40,000 2,341,600 Federal Signal Corp. 70,000 1,319,500 Flowserve Corp. (a) 40,000 869,200 JLG Industries, Inc. 87,500 1,174,250 Paccar, Inc. 17,500 969,675 Timken Co. 57,500 1,263,850 ----------- Machinery Total 12,164,625 ROAD & RAIL - 0.2% Kansas City Southern (a) 50,000 702,500 ----------- Road & Rail Total 702,500 ----------- INDUSTRIALS TOTAL 35,312,975 INFORMATION TECHNOLOGY - 10.1% COMMUNICATIONS EQUIPMENT - 1.9% Motorola, Inc. 77,500 1,429,875 Nortel Networks Corp. (a) 75,000 598,500 Polycom, Inc. (a) 112,500 2,482,875 Powerwave Technologies, Inc. (a) 92,500 912,975 Tellabs, Inc. (a) 125,000 1,212,500 ----------- Communications Equipment Total 6,636,725 COMPUTERS & PERIPHERALS - 0.9% Gateway, Inc. (a) 75,000 407,250 Hewlett-Packard Co. 50,000 1,135,500 Hypercom Corp. (a) 125,000 860,000 InFocus Corp. (a) 50,000 589,000 ----------- Computers & Peripherals Total 2,991,750 ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.0% Celestica, Inc. (a) 75,000 1,344,750 Methode Electronics, Inc. 75,000 937,500 Solectron Corp. (a) 100,000 639,000 Waters Corp. (a) 20,000 738,800 ----------- Electronic Equipment & Instruments Total 3,660,050 ----------- SHARES VALUE ($) - ---------------------------------------------------------------------- INTERNET SOFTWARE & SERVICES - 0.8% Check Point Software Technologies Ltd. (a) 87,500 2,014,250 NIC, Inc. (a) 100,000 627,000 ----------- Internet Software & Services Total 2,641,250 IT SERVICES - 2.0% Affiliated Computer Services, Inc., Class A (a) 32,500 1,568,450 BISYS Group, Inc. (a) 40,000 706,000 DST Systems, Inc. (a) 62,500 2,797,500 First Data Corp. 48,250 1,977,285 ----------- IT Services Total 7,049,235 SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 1.7% FEI Co. (a) 75,000 1,706,250 Micron Technology, Inc. 20,000 300,800 Samsung Electronics Co., Ltd., GDR (b) 10,000 2,335,000 Texas Instruments, Inc. 50,000 1,532,500 ----------- Semiconductors & Semiconductor Equipment Total 5,874,550 SOFTWARE - 1.8% Activision, Inc. (a) 100,000 2,101,000 Borland Software Corp. (a) 75,000 697,500 Microsoft Corp. 62,500 1,656,250 Novell, Inc. (a) 112,500 1,145,250 Parametric Technology Corp. (a) 150,000 684,000 ----------- Software Total 6,284,000 ----------- INFORMATION TECHNOLOGY TOTAL 35,137,560 MATERIALS - 6.2% CHEMICALS - 2.9% Air Products & Chemicals, Inc. 30,000 1,447,200 Calgon Carbon Corp. 100,000 708,000 Dow Chemical Co. 50,000 2,173,500 IMC Global, Inc. 40,000 452,000 Landec Corp. (a) 50,000 400,000 Millennium Chemicals, Inc. 50,000 668,500 Potash Corp. of Saskatchewan, Inc. 27,500 2,274,250 Rohm and Haas Corp. 30,000 1,192,500 Zeon Corp. (Japan) 100,000 713,370 ----------- Chemicals Total 10,029,320 CONSTRUCTION MATERIALS - 0.3% Martin Marietta Materials, Inc. 20,000 981,800 ----------- Construction Materials Total 981,800 CONTAINERS & PACKAGING - 0.3% Smurfit-Stone Container Corp. (a) 50,000 928,000 ----------- Containers & Packaging Total 928,000 See Accompanying Notes to Financial Statements. 70 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA STRATEGIC INVESTOR FUND SHARES VALUE ($) - ---------------------------------------------------------------------- COMMON STOCKS - (CONTINUED) MATERIALS - (CONTINUED) METALS & MINING - 0.9% Alumina Ltd., ADR 20,000 343,200 Companhia Vale do Rio Doce, ADR 15,000 868,500 CONSOL Energy, Inc. 40,000 1,009,200 Nippon Steel Corp. (Japan) 300,000 587,912 Wolfden Resources, Inc. (Canada) (a) 50,000 212,615 ----------- Metals & Mining Total 3,021,427 PAPER & FOREST PRODUCTS - 1.8% Abitibi-Consolidated, Inc. 50,000 396,000 Bowater, Inc. 47,500 2,180,250 Georgia-Pacific Corp. 40,000 1,282,000 Votorantim Celulose e Papel SA, ADR 75,000 2,550,000 ----------- Paper & Forest Products Total 6,408,250 ----------- MATERIALS TOTAL 21,368,797 TELECOMMUNICATION SERVICES - 3.8% DIVERSIFIED TELECOMMUNICATION SERVICES - 2.2% Companhia Anonima Nacional Telefonos de Venezuela, ADR 80,000 1,482,400 Level 3 Communications, Inc. (a) 125,000 537,500 Philippine Long Distance Telephone Co., ADR (a) 50,000 872,000 PT Telekomunikasi Indonesia, ADR 100,000 1,722,000 SBC Communications, Inc. 50,000 1,200,500 Verizon Communications, Inc. 47,500 1,820,675 ----------- Diversified Telecommunication Services Total 7,635,075 WIRELESS TELECOMMUNICATION SERVICES - 1.6% Millicom International Cellular SA (a) 150,000 3,358,500 VimpelCom, ADR (a) 25,000 2,122,250 ----------- Wireless Telecommunication Services Total 5,480,750 ----------- TELECOMMUNICATION SERVICES TOTAL 13,115,825 UTILITIES - 3.0% ELECTRIC UTILITIES - 1.0% TECO Energy, Inc. 100,000 1,507,000 TXU Corp. 30,000 843,900 Veolia Environnement 40,000 1,192,000 ----------- Electric Utilities Total 3,542,900 GAS UTILITIES - 0.6% NiSource, Inc. 50,000 1,085,500 NUI Corp. 47,500 812,725 ----------- Gas Utilities Total 1,898,225 SHARES VALUE ($) - ---------------------------------------------------------------------- MULTI-UTILITIES & UNREGULATED POWER - 1.1% Calpine Corp. (a) 125,000 688,750 Duke Energy Corp. 47,500 1,043,100 El Paso Corp. 40,000 297,600 ONEOK, Inc. 47,500 1,054,975 Westar Energy, Inc. 40,000 770,000 ----------- Multi-Utilities & Unregulated Power Total 3,854,425 WATER UTILITIES - 0.3% California Water Service Group 37,500 1,104,375 ----------- Water Utilities Total 1,104,375 ----------- UTILITIES TOTAL 10,399,925 TOTAL COMMON STOCKS (Cost of $211,193,881) 276,908,298 INVESTMENT MANAGEMENT COMPANY - 0.5% Japan Smaller Capitalization Fund, Inc. (a) (Cost of $984,539) 150,000 1,620,000 ----------- SHORT-TERM OBLIGATION - 19.4% PAR ($) - ---------------------------------------------------------------------- Repurchase agreement with State Street Bank & Trust Co., dated 02/27/04, due 03/01/04 at 0.930%, collateralized by U.S. Treasury Notes with maturities to 11/15/06, market value $68,540,138 (repurchase proceeds $67,196,207) (Cost of $67,191,000) 67,191,000 67,191,000 ----------- TOTAL INVESTMENTS - 99.8% (COST OF $279,369,420) (C) 345,719,298 OTHER ASSETS & LIABILITIES, NET - 0.2% 781,926 NET ASSETS - 100% 346,501,224 NOTES TO INVESTMENT PORTFOLIO: (a) Non-income producing. (b) This security is exempt from registration under Rule 144A of the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At February 29, 2004, the value of this security amounted to $2,335,000, which represents 0.7% of net assets. (c) Cost for both financial statement and federal income tax purposes is the same. ACRONYM NAME ------- ---- ADR American Depositary Receipt GDR Global Depositary Receipt See Accompanying Notes to Financial Statements. 71 INVESTMENT PORTFOLIO____________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA BALANCED FUND SHARES VALUE ($) - ---------------------------------------------------------------------- COMMON STOCKS - 65.9% CONSUMER DISCRETIONARY - 7.6% AUTO COMPONENTS - 0.4% Dana Corp. 102,200 2,186,058 ----------- Auto Components Total 2,186,058 HOTELS, RESTAURANTS & LEISURE - 0.5% Royal Caribbean Cruises Ltd. 71,850 3,179,363 ----------- Hotels, Restaurants & Leisure Total 3,179,363 INTERNET & CATALOG RETAIL - 0.4% eBay, Inc. (a) 39,800 2,740,628 ----------- Internet & Catalog Retail Total 2,740,628 MEDIA - 3.7% Comcast Corp., Class A (a) 49,856 1,497,674 Gannett Co., Inc. 48,750 4,205,662 Lamar Advertising Co. (a) 33,550 1,331,935 Time Warner, Inc. (a) 221,300 3,817,425 Tribune Co. 81,850 4,087,589 Viacom, Inc., Class B 97,600 3,753,696 Walt Disney Co. 171,700 4,555,201 ----------- Media Total 23,249,182 MULTILINE RETAIL - 2.1% Kohl's Corp. (a) 111,900 5,762,850 Target Corp. 161,300 7,090,748 ----------- Multiline Retail Total 12,853,598 TEXTILES, APPAREL & LUXURY GOODS - 0.5% NIKE, Inc., Class B 44,650 3,270,612 ----------- Textiles, Apparel & Luxury Goods Total 3,270,612 ----------- CONSUMER DISCRETIONARY TOTAL 47,479,441 CONSUMER STAPLES - 6.7% BEVERAGES - 1.2% Constellation Brands, Inc., Class A(a) 33,950 1,076,215 PepsiCo, Inc. 123,935 6,432,226 ----------- Beverages Total 7,508,441 FOOD & STAPLES RETAILING - 2.8% Wal-Mart Stores, Inc. 294,500 17,540,420 ----------- Food & Staples Retailing Total 17,540,420 FOOD PRODUCTS - 0.2% Hershey Foods Corp. 17,350 1,438,315 ----------- Food Products Total 1,438,315 HOUSEHOLD PRODUCTS - 0.8% Colgate-Palmolive Co. 38,920 2,158,114 Procter & Gamble Co. 26,445 2,710,877 ----------- Household Products Total 4,868,991 SHARES VALUE ($) - ---------------------------------------------------------------------- PERSONAL PRODUCTS - 0.6% Alberto-Culver Co., Class B 39,488 1,622,147 Avon Products, Inc. 14,600 1,030,760 Estee Lauder Companies, Inc., Class A 24,600 1,047,960 ----------- Personal Products Total 3,700,867 TOBACCO - 1.1% Altria Group, Inc. 111,875 6,438,406 ----------- Tobacco Total 6,438,406 ----------- CONSUMER STAPLES TOTAL 41,495,440 ENERGY - 2.6% ENERGY EQUIPMENT & SERVICES - 0.4% National-Oilwell, Inc. (a) 41,200 1,224,052 Schlumberger Ltd. 9,960 642,320 Smith International, Inc. (a) 12,880 652,630 ----------- Energy Equipment & Services Total 2,519,002 OIL & GAS - 2.2% Apache Corp. 20,058 825,788 ConocoPhillips 37,750 2,599,842 Exxon Mobil Corp. 230,014 9,699,690 Pioneer Natural Resources Co. 13,450 432,014 ----------- Oil & Gas Total 13,557,334 ----------- ENERGY TOTAL 16,076,336 FINANCIALS - 13.4% CAPITAL MARKETS - 3.7% A.G. Edwards, Inc. 48,800 1,866,600 Bank of New York Co., Inc. 118,300 3,903,900 Goldman Sachs Group, Inc. 51,650 5,468,186 J.P. Morgan Chase & Co. 104,565 4,289,256 Merrill Lynch & Co., Inc. 105,600 6,463,776 Morgan Stanley 14,575 871,002 ----------- Capital Markets Total 22,862,720 COMMERCIAL BANKS - 1.6% Bank of America Corp. (b) 15,260 1,250,099 Bank One Corp. 136,025 7,342,630 Wachovia Corp. 34,850 1,671,754 ----------- Commercial Banks Total 10,264,483 CONSUMER FINANCE - 1.8% American Express Co. 153,725 8,211,990 MBNA Corp. 106,400 2,907,912 ----------- Consumer Finance Total 11,119,902 DIVERSIFIED FINANCIAL SERVICES - 2.9% Ameritrade Holding Corp. (a) 55,700 906,796 CIT Group, Inc. 29,300 1,156,471 Citigroup, Inc. 317,793 15,972,276 ----------- Diversified Financial Services Total 18,035,543 See Accompanying Notes to Financial Statements. 72 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA BALANCED FUND SHARES VALUE ($) - ---------------------------------------------------------------------- COMMON STOCKS - (CONTINUED) FINANCIALS - (CONTINUED) INSURANCE - 3.0% Allstate Corp. (a) 68,395 3,120,864 American International Group, Inc. 99,162 7,337,988 Assurant, Inc. (a) 68,400 1,760,616 Chubb Corp. 41,900 2,974,062 Prudential Financial, Inc. 70,450 3,268,176 ----------- Insurance Total 18,461,706 THRIFTS & MORTGAGE FINANCE - 0.4% Fannie Mae 31,725 2,376,202 ----------- Thrifts & Mortgage Finance Total 2,376,202 ----------- FINANCIALS TOTAL 83,120,556 HEALTH CARE - 6.9% BIOTECHNOLOGY - 0.8% Amgen, Inc. (a) 57,333 3,642,365 Gilead Sciences, Inc. (a) 28,250 1,531,432 ----------- Biotechnology Total 5,173,797 HEALTH CARE EQUIPMENT & SUPPLIES - 0.4% Boston Scientific Corp. (a) 55,500 2,267,175 ----------- Health Care Equipment & Supplies Total 2,267,175 HEALTH CARE PROVIDERS & SERVICES - 1.2% Aetna, Inc. 44,300 3,578,997 Cardinal Health, Inc. 40,100 2,615,723 Henry Schein, Inc. (a) 15,200 1,086,800 ----------- Health Care Providers & Services Total 7,281,520 PHARMACEUTICALS - 4.5% Eli Lilly and Co. 20,250 1,497,285 Johnson & Johnson 124,025 6,686,188 Pfizer, Inc. 370,940 13,594,951 Shire Pharmaceuticals PLC, ADR (a) 70,050 2,165,946 Teva Pharmaceutical Industries Ltd., ADR 62,420 4,057,300 ----------- Pharmaceuticals Total 28,001,670 ----------- HEALTH CARE TOTAL 42,724,162 INDUSTRIALS - 9.6% AEROSPACE & DEFENSE - 0.4% Boeing Co. 51,600 2,237,892 ----------- Aerospace & Defense Total 2,237,892 AIR FREIGHT & LOGISTICS - 1.2% United Parcel Service, Inc., Class B 102,450 7,236,044 ----------- Air Freight & Logistics Total 7,236,044 AIRLINES - 0.2% AMR Corp. (a) 62,900 956,080 ----------- Airlines Total 956,080 SHARES VALUE ($) - ---------------------------------------------------------------------- COMMERCIAL SERVICES & SUPPLIES - 2.3% Allied Waste Industries, Inc. (a) 145,500 1,837,665 Avery Dennison Corp. 33,400 2,116,558 Manpower, Inc. 65,100 2,913,225 Republic Services, Inc. 83,550 2,192,352 Waste Management, Inc. 195,675 5,576,738 ----------- Commercial Services & Supplies Total 14,636,538 ELECTRICAL EQUIPMENT - 0.3% Emerson Electric Co. 34,350 2,146,188 ----------- Electrical Equipment Total 2,146,188 INDUSTRIAL CONGLOMERATES - 3.0% 3M Co. 54,450 4,248,189 General Electric Co. 447,200 14,542,944 ----------- Industrial Conglomerates Total 18,791,133 MACHINERY - 1.5% Caterpillar, Inc. 39,150 2,965,613 ITT Industries, Inc. 57,550 4,345,025 Pall Corp. 77,700 2,033,409 ----------- Machinery Total 9,344,047 ROAD & RAIL - 0.7% Canadian National Railway Co. 69,550 4,118,751 ----------- Road & Rail Total 4,118,751 ----------- INDUSTRIALS TOTAL 59,466,673 INFORMATION TECHNOLOGY - 14.0% COMMUNICATIONS EQUIPMENT - 2.7% Avaya, Inc. (a) 50,300 862,645 Cisco Systems, Inc. (a) 187,660 4,334,946 Emulex Corp. (a) 64,135 1,486,649 Motorola, Inc. 117,800 2,173,410 Nortel Networks Corp. (a) 190,100 1,516,998 QLogic Corp. (a) 62,800 2,625,040 QUALCOMM, Inc. 55,700 3,534,165 ----------- Communications Equipment Total 16,533,853 COMPUTERS & PERIPHERALS - 1.4% Dell, Inc. (a) 46,800 1,528,020 International Business Machines Corp. 45,650 4,405,225 Seagate Technology (a) 147,500 2,551,750 ----------- Computers & Peripherals Total 8,484,995 ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.2% Flextronics International Ltd. (a) 76,275 1,380,578 ----------- Electronic Equipment & Instruments Total 1,380,578 INTERNET SOFTWARE & SERVICES - 0.8% Check Point Software Technologies Ltd. (a) 107,400 2,472,348 Yahoo!, Inc. (a) 59,650 2,648,460 ----------- Internet Software & Services Total 5,120,808 See Accompanying Notes to Financial Statements. 73 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA BALANCED FUND SHARES VALUE ($) - ---------------------------------------------------------------------- COMMON STOCKS - (CONTINUED) INFORMATION TECHNOLOGY - (CONTINUED) IT SERVICES - 0.2% Cognizant Technology Solutions Corp. (a) 33,700 1,598,728 ----------- IT Services Total 1,598,728 SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 4.7% Advanced Micro Devices, Inc. (a) 110,900 1,663,500 Applied Micro Circuits Corp. (a) 298,200 1,926,372 Broadcom Corp., Class A (a) 55,700 2,260,306 Intel Corp. 149,775 4,377,923 Linear Technology Corp. 85,200 3,407,148 Marvell Technology Group Ltd. (a) 38,975 1,774,532 Microchip Technology, Inc. 63,500 1,809,750 National Semiconductor Corp. (a) 55,150 2,170,704 NVIDIA Corp. (a) 65,975 1,467,944 Silicon Laboratories, Inc. (a) 47,800 2,694,486 Taiwan Semiconductor Manufacturing Co., Ltd., ADR (a) 273,149 2,838,018 Texas Instruments, Inc. 52,700 1,615,255 Xilinx, Inc. (a) 30,450 1,280,118 ----------- Semiconductors & Semiconductor Equipment Total 29,286,056 SOFTWARE - 4.0% Citrix Systems, Inc. (a) 76,500 1,620,270 Computer Associates International, Inc. 65,650 1,743,664 Mercury Interactive Corp. (a) 56,450 2,740,083 Microsoft Corp. 439,975 11,659,338 Oracle Corp. (a) 313,365 4,036,141 Symantec Corp. (a) 47,590 1,957,853 VERITAS Software Corp. (a) 40,000 1,216,800 ----------- Software Total 24,974,149 ----------- INFORMATION TECHNOLOGY TOTAL 87,379,167 MATERIALS - 5.1% CHEMICALS - 2.2% Dow Chemical Co. 226,950 9,865,516 Praxair, Inc. 105,700 3,839,024 ----------- Chemicals Total 13,704,540 CONTAINERS & PACKAGING - 0.4% Smurfit-Stone Container Corp. (a) 137,300 2,548,288 ----------- Containers & Packaging Total 2,548,288 METALS & MINING - 1.8% Alcan, Inc. 120,800 5,753,704 Alcoa, Inc. 152,200 5,702,934 ----------- Metals & Mining Total 11,456,638 PAPER & FOREST PRODUCTS - 0.7% International Paper Co. 92,900 4,111,754 ----------- Paper & Forest Products Total 4,111,754 ----------- MATERIALS TOTAL 31,821,220 TOTAL COMMON STOCKS (Cost of $336,045,562) 409,562,995 SHARES VALUE ($) - ---------------------------------------------------------------------- PREFERRED STOCK - 1.0% CONSUMER DISCRETIONARY - 1.0% MEDIA - 1.0% News Corp., Ltd., ADR (Cost of $5,407,999) 194,525 6,366,803 ----------- U.S. GOVERNMENT & AGENCY SECURITIES - 13.7% PAR ($) - ------------------------------------------------------ U.S. TREASURY NOTES & BONDS - 1.8% U.S. Treasury Bonds: 6.250% 08/15/23 3,500,000 4,118,107 7.250% 05/15/16 1,135,000 1,449,076 U.S. Treasury Inflation Index Note, 3.625% 01/15/08 1,870,961 2,111,189 U.S. Treasury Note, 3.500% 11/15/06 3,500,000 3,637,403 ----------- U.S. Treasury Notes & Bonds Total 11,315,775 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) - 0.2% 7.000% 10/15/31 - 05/15/32 1,346,884 1,434,922 ----------- Government National Mortgage Association (GNMA) Total 1,434,922 FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) - 5.1% 4.500% 10/15/18 - 12/01/18 25,358,713 25,686,835 5.000% 01/01/34 2,068,925 2,073,936 6.000% 03/01/17 - 08/01/17 3,096,812 3,265,844 6.500% 05/01/32 - 08/01/32 581,910 612,168 ----------- Federal Home Loan Mortgage Corp. (FHLMC) Total 31,638,783 FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) - 1.1% 5.000% 12/01/17 - 10/01/18 5,436,614 5,588,133 5.876% 07/01/32 (c) 1,100,184 1,147,097 ----------- Federal National Mortgage Association (FNMA) Total 6,735,230 FEDERAL HOUSING ADMINISTRATION (FHA) - 0.2% FHA Insured Project, Pool #53-43077, 9.125% 03/25/33 1,548,594 1,579,565 ----------- Federal Housing Administration (FHA) Total 1,579,565 AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS - 5.3% FHLMC Multiclass Mtg. Partn. Ctfs., Gtd.: Series 2235, Class VN, 7.000% 06/15/14 2,324,539 2,358,167 Series 2462, Class JE, 6.500% 11/15/30 1,810,000 1,876,497 See Accompanying Notes to Financial Statements. 74 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA BALANCED FUND PAR ($) VALUE ($) - ---------------------------------------------------------------------- U.S. GOVERNMENT & AGENCY SECURITIES - (CONTINUED) AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS - (CONTINUED) Series 2689, Class PC, 4.000% 09/15/15 3,120,000 3,132,585 Series 2695, Class AT, 4.000% 10/15/26 5,300,000 5,392,367 Series 2695, Class BO, 4.500% 08/15/28 720,000 725,467 Series 2695, Class DB, 4.000% 09/15/15 3,100,000 3,136,060 Series 2695, Class DG, 4.000% 10/15/18 3,600,000 3,372,332 Series 2700, Class PD, 4.500% 02/15/27 630,000 644,351 Series 2702, Class AB, 4.500% 07/15/27 1,312,012 1,343,205 FNMA Gtd. Remic Pass Thru Ctfs.: Remic Tr. 2001-55, Class PC, 6.500% 10/25/31 3,552,159 3,708,727 Remic Tr. 2001-56, Class KD, 6.500% 08/15/31 1,089,459 1,110,599 Remic Tr. 2002-8, Class PD, 6.500% 07/25/30 3,600,000 3,701,951 Remic Tr. 2002-27, Class OG, 6.500% 12/25/30 1,566,908 1,586,314 Remic Tr. 2003-87, Class TG, 4.500% 11/25/14 630,000 642,278 ----------- Agency Collateralized Mortgage Obligations Total 32,730,900 ----------- TOTAL U.S. GOVERNMENT & AGENCY SECURITIES (Cost of $83,325,370) 85,435,175 CORPORATE NOTES & BONDS - 13.8% INDUSTRIALS - 7.4% Acetex Corp., 10.875% 08/01/09 25,000 27,500 AdvancePCS, 8.500% 04/01/08 100,000 109,500 Airgas, Inc., 9.125% 10/01/11 125,000 140,625 Alcan, Inc., 7.250% 03/15/31 675,000 809,305 Allied Waste North America, Inc., 10.000% 08/01/09 250,000 268,125 Allstate Life Global Funding II, 2.625% 10/22/06 (d) 1,000,000 1,006,250 American Axle & Manufacturing, Inc., 9.750% 03/01/09 (d) 250,000 262,500 AmerisourceBergen Corp., 8.125% 09/01/08 200,000 222,500 Anadarko Finance Co., 7.500% 05/01/31 1,250,000 1,508,225 PAR ($) VALUE ($) ---------------------------------------------------------------------- Anthem, Inc., 6.800% 08/01/12 925,000 1,067,348 Apogent Technologies, Inc., 6.500% 05/15/13 125,000 130,937 Arch Western Finance LLC, 6.750% 07/01/13 (d) 170,000 178,500 AT&T Corp., 8.750% 11/15/31 650,000 766,961 AT&T Wireless Services, Inc., 8.750% 03/01/31 750,000 962,828 Autonation, Inc., 9.000% 08/01/08 80,000 92,200 Ball Corp., 7.750% 08/01/06 250,000 270,000 Boeing Co., 6.125% 02/15/33 850,000 881,765 British Sky Broadcasting Group, 7.300% 10/15/06 100,000 111,144 Canadian National Railway Co.: 6.450% 07/15/06 (c) 300,000 326,418 7.195% 01/02/16 891,544 1,076,985 Canandaigua Brands, Inc., 8.500% 03/01/09 250,000 260,625 Cascades, Inc., 7.250% 02/15/13 115,000 120,175 Chesapeake Energy Corp.: 7.500% 09/15/13 145,000 156,600 8.375% 11/01/08 50,000 54,375 9.000% 08/15/12 20,000 23,075 Cinemark USA, Inc., 9.000% 02/01/13 170,000 191,250 Coca-Cola Enterprises, Inc., 6.750% 01/15/38 1,045,000 1,192,199 Comcast Corp., 7.050% 03/15/33 375,000 413,588 Corrections Corp. of America, 7.500% 05/01/11 (d) 100,000 105,000 Cott Beverages, Inc., 8.000% 12/15/11 250,000 272,500 Couche-Tard, 7.500% 12/15/13 (d) 75,000 80,250 Cox Enterprises, Inc., 8.000% 02/15/07 (d) 850,000 970,445 DaimlerChrysler NA Holding Corp., 8.500% 01/18/31 475,000 577,044 Deutsche Telekom International Finance BV, 8.500% 06/15/10 525,000 637,865 Dex Media East LLC, 12.125% 11/15/12 100,000 118,000 Diageo Capital PLC, 3.375% 03/20/08 1,100,000 1,111,605 DirecTV Holdings LLC, 8.375% 03/15/13 170,000 193,375 EchoStar DBS Corp., 5.750% 10/01/08 (d) 150,000 153,000 See Accompanying Notes to Financial Statements. 75 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA BALANCED FUND PAR ($) VALUE ($) - ---------------------------------------------------------------------- CORPORATE NOTES & BONDS - (CONTINUED) INDUSTRIALS - (CONTINUED) EquiStar Chemicals LP: 10.125% 09/01/08 25,000 27,125 10.625% 05/01/11 25,000 27,250 Ethyl Corp., 8.875% 05/01/10 50,000 54,000 Extended Stay America, Inc., 9.875% 06/15/11 150,000 167,625 General Electric Co., 5.000% 02/01/13 2,500,000 2,586,300 Grant Prideco, Inc.: 9.000% 12/15/09 220,000 246,400 9.625% 12/01/07 15,000 16,950 Harrah's Operating Co., Inc., 7.875% 12/15/05 125,000 135,625 Hasbro, Inc., 6.150% 03/15/08 125,000 133,125 Houghton Mifflin Co., 9.875% 02/01/13 205,000 223,450 International Business Machines Corp., 5.875% 11/29/32 1,700,000 1,752,581 Iron Mountain, Inc., 7.750% 01/15/15 250,000 263,125 John Deere Capital Corp., 3.900% 01/15/08 550,000 567,143 K&F Industries, Inc., 9.625% 12/15/10 145,000 161,856 KB Home, 8.625% 12/15/08 250,000 280,625 Kennametal, Inc., 7.200% 06/15/12 35,000 38,583 Key Energy Services, Inc., 6.375% 05/01/13 105,000 109,200 Kroger Co., 6.200% 06/15/12 650,000 715,995 L-3 Communications Corp., 7.625% 06/15/12 200,000 222,000 Lamar Media Corp., 7.250% 01/01/13 225,000 243,000 Lear Corp., 7.960% 05/15/05 250,000 266,250 LIN Television Corp., 6.500% 05/15/13 125,000 127,500 Lockheed Martin Corp., 8.500% 12/01/29 700,000 938,721 Lowe's Companies, Inc., 6.500% 03/15/29 700,000 782,705 MacDermid, Inc., 9.125% 07/15/11 50,000 56,125 Marathon Oil Corp., 6.800% 03/15/32 975,000 1,086,579 MGM Mirage, Inc., 9.750% 06/01/07 235,000 270,250 Nalco Co., 7.750% 11/15/11 (d) 75,000 78,375 PAR ($) VALUE ($) - ------------------------------------------------------------------------ Newell Rubbermaid, Inc., 4.000% 05/01/10 950,000 932,092 Nextel Communications, Inc.: 7.375% 08/01/15 275,000 296,312 9.375% 11/15/09 25,000 27,000 9.500% 02/01/11 10,000 11,225 Occidental Petroleum Corp., 4.250% 03/15/10 775,000 790,237 Offshore Logistics, Inc., 6.125% 06/15/13 205,000 200,900 Omnicare, Inc., 8.125% 03/15/11 175,000 192,937 Owens-Illinois, Inc., 7.350% 05/15/08 150,000 149,625 Park Place Entertainment Corp., 9.375% 02/15/07 250,000 280,000 Peabody Energy Corp., 6.875% 03/15/13 175,000 186,375 PepsiAmericas, Inc., 3.875% 09/12/07 1,450,000 1,501,083 Pride International, Inc., 9.375% 05/01/07 120,000 123,000 Province Healthcare Co., 7.500% 06/01/13 125,000 128,437 R.H. Donnelley Financial Corp., 10.875% 12/15/12 (d) 215,000 254,775 Rogers Cable, Inc.: 6.250% 06/15/13 50,000 52,086 7.875% 05/01/12 185,000 211,409 Royal Caribbean Cruises Ltd., 6.875% 12/01/13 50,000 51,750 Russel Metals, Inc., 6.375% 03/01/14 (d) 15,000 15,055 Scotts Co., 6.625% 11/15/13 (d) 70,000 72,450 Select Medical Corp., 9.500% 06/15/09 200,000 220,500 Silgan Holdings, Inc., 6.750% 11/15/13 (d) 140,000 142,800 Sinclair Broadcasting Group, Inc., 8.000% 03/15/12 220,000 237,600 Six Flags, Inc.: 9.500% 02/01/09 25,000 26,187 9.625% 06/01/14 (d) 50,000 52,625 Smurfit-Stone Container Corp.: 8.250% 10/01/12 55,000 59,400 8.375% 06/01/12 25,000 26,937 9.750% 02/01/11 35,000 39,025 Speedway Motorsports, Inc., 6.750% 06/01/13 100,000 104,250 Starwood Hotels & Resorts Worldwide, Inc., 7.375% 05/01/07 100,000 107,750 Station Casinos, Inc., 6.875% 03/01/16 (d) 240,000 242,400 Suburban Propane Partners, 6.875% 12/15/13 (d) 70,000 71,837 Sun International Hotels, 8.875% 08/15/11 15,000 16,537 See Accompanying Notes to Financial Statements. 76 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA BALANCED FUND PAR ($) VALUE ($) - ---------------------------------------------------------------------- CORPORATE NOTES & BONDS - (CONTINUED) INDUSTRIALS - (CONTINUED) Synagro Technologies, Inc., 9.500% 04/01/09 50,000 54,250 TCI Communications, Inc., 7.250% 08/01/05 685,000 735,621 Teekay Shipping Corp., 8.875% 07/15/11 200,000 228,000 Time Warner, Inc., 6.625% 05/15/29 875,000 912,249 Toll Corp., 8.250% 12/01/11 175,000 194,250 TransDigm, Inc., 8.375% 07/15/11 125,000 131,875 Triad Hospitals, Inc., 8.750% 05/01/09 200,000 219,000 Union Pacific Corp., 3.875% 02/15/09 1,000,000 1,010,610 United Technologies Corp., 6.500% 06/01/09 1,685,000 1,924,489 Universal Compression, Inc., 7.250% 05/15/10 65,000 68,900 Verizon Global Funding Corp., 7.750% 12/01/30 1,200,000 1,445,676 Viacom, Inc., 5.500% 05/15/33 425,000 410,291 Vintage Petroleum, Inc., 7.875% 05/15/11 25,000 26,500 Wal-Mart Stores, Inc., 4.125% 02/15/11 1,000,000 1,009,200 Waste Management, Inc., 7.375% 08/01/10 825,000 964,870 Westinghouse Air Brake Technology, 6.875% 07/31/13 80,000 84,400 Westport Resources Corp., 8.250% 11/01/11 265,000 292,825 Wyeth, 5.500% 02/01/14 700,000 729,491 XTO Energy, Inc., 7.500% 04/15/12 200,000 233,500 Yum! Brands, Inc., 8.500% 04/15/06 250,000 277,500 ----------- Industrials Total 46,207,143 FINANCIALS - 4.5% American General Finance Corp., 5.375% 09/01/09 475,000 513,551 Bank of America Corp., 7.800% 02/15/10 (b) 2,225,000 2,664,193 Bank One Corp., 2.625% 06/30/08 1,300,000 1,269,216 CIT Group, Inc., 7.250% 08/15/05 890,000 959,491 Citigroup, Inc., 7.250% 10/01/10 1,565,000 1,845,213 Countrywide Home Loans, Inc., 2.875% 02/15/07 600,000 602,640 Ford Motor Credit Co., 7.375% 10/28/09 2,005,000 2,196,999 General Motors Acceptance Corp., 7.750% 01/19/10 1,550,000 1,755,003 PAR ($) VALUE ($) - ---------------------------------------------------------------------- Goldman Sachs Group, Inc., 6.345% 02/15/34 745,000 751,966 Group 1 Automotive, Inc., 8.250% 08/15/13 35,000 38,325 Health Care Property Investors, Inc., 6.450% 06/25/12 850,000 946,075 Health Care REIT, Inc., 7.500% 08/15/07 150,000 168,200 Household Finance Corp., 6.400% 06/17/08 1,250,000 1,402,450 iStar Financial, Inc.: 6.000% 12/15/10 75,000 77,625 7.000% 03/15/08 25,000 26,875 8.750% 08/15/08 50,000 56,625 J.P. Morgan Chase & Co., 5.750% 01/02/13 800,000 861,008 Lehman Brothers Holdings, Inc., 4.000% 01/22/08 800,000 825,104 Merrill Lynch & Co., Inc., 4.125% 01/15/09 1,000,000 1,025,670 Morgan Stanley: 4.250% 05/15/10 375,000 381,214 6.100% 04/15/06 700,000 757,673 SLM Corp., 5.125% 08/27/12 1,900,000 1,963,403 US Bank NA, 6.375% 08/01/11 2,050,000 2,320,969 Wachovia Corp., 3.500% 08/15/08 2,100,000 2,123,709 Washington Mutual, Inc., 5.625% 01/15/07 1,275,000 1,376,248 Wells Fargo & Co., 5.900% 05/21/06 1,090,000 1,177,756 ----------- Financials Total 28,087,201 UTILITIES - 0.7% Centerpoint Energy Houston, 5.750% 01/15/14 1,050,000 1,110,301 Dominion Resources, Inc., 2.800% 02/15/05 1,250,000 1,263,762 Kinder Morgan Energy Partners LP, 8.000% 03/15/05 1,475,000 1,566,258 Pogo Producing Co., 8.250% 04/15/11 30,000 33,750 Sprint Capital Corp., 6.875% 11/15/28 450,000 461,848 ----------- Utilities Total 4,435,919 INTERNATIONAL - 1.2% Ontario Province, 3.500% 09/17/07 2,200,000 2,255,374 Quebec Province, 6.500% 01/17/06 2,100,000 2,274,426 Republic of Italy, 2.500% 03/31/06 1,300,000 1,314,716 United Mexican States, 8.000% 09/24/22 1,150,000 1,296,625 ----------- International Total 7,141,141 ----------- TOTAL CORPORATE NOTES & BONDS (Cost of $80,970,319) 85,871,404 See Accompanying Notes to Financial Statements. 77 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA BALANCED FUND PAR ($) VALUE ($) ---------------------------------------------------------------------- OTHER SECURITIZED LOANS - 4.4% ASSET-BACKED SECURITIES - 1.1% Cityscape Home Equity Loan Trust: Series 1997-B, Class A7, 7.410% 05/25/28 1,146,204 1,145,714 Series 1997-4, Class A4, 7.440% 10/25/18 (c) 966,135 971,613 First Alliance Mortgage Trust, Series 1996-1, Class A1, 7.340% 06/20/27 257,661 258,512 IMC Home Equity Loan Trust: Series 1997-3, Class A6, 7.520% 08/20/28 734,889 736,506 Series 1997-5, Class A9, 7.310% 11/20/28 1,689,694 1,737,681 Salomon Brothers Mortgage Securities VII, Series 1998-AQ1, Class A5, 7.150% 06/25/28 1,891,840 1,899,029 ----------- Asset-Backed Securities Total 6,749,055 COLLATERALIZED MORTGAGE OBLIGATIONS - 2.3% Bear Stearns Asset-Backed Securities, Inc., Series 2003-AC7, Class A1, 5.000% 01/25/34 (c) 3,139,517 3,256,904 Bear Stearns Mortgage Securities, Inc., Series 1996-2, Class A1, 0.650% 01/28/25 (c) 275,923 274,177 Countrywide Alternative Loan Trust, Series 2004-2CB, Class 1A4, 1.490% 03/25/34 (c) 5,975,931 5,975,931 First Nationwide Trust, Series 2000-1, Class IIA3, 8.000% 10/25/30 1,686,671 1,713,877 SACO I, Inc., Series 1995-1, Class A, 15.594% 09/25/24 (c) 45,422 45,422 Structured Asset Securities Corp: Series 2003-14, Class 1A3, 5.500% 05/25/33 1,421,838 1,457,299 Series 2003-21, Class 1A3, 5.500% 07/25/33 1,797,952 1,855,079 ----------- Collateralized Mortgage Obligations Total 14,578,689 COMMERCIAL MORTGAGE-BACKED SECURITIES - 1.0% GMAC Commercial Mortgage Asset Corp., Series 2001-FLAA, Class B1, 1.593% 06/15/13 (c)(d) 1,164,107 1,163,862 Nationslink Funding Corp., Series 1999-SL, Class A5, 6.888% 05/10/07 4,380,000 4,936,041 ----------- Commercial Mortgage-Backed Securities Total 6,099,903 TOTAL OTHER SECURITIZED LOANS (Cost of $26,613,544) 27,427,647 PAR ($) VALUE ($) - ---------------------------------------------------------------------- SHORT-TERM OBLIGATIONS - 2.1% U.S. TREASURY BILL - 0.5% 1.000% 05/06/04 2,800,000 2,795,534 ----------- REPURCHASE AGREEMENT - 1.6% Repurchase agreement with State Street Bank & Trust Co., dated 02/27/04, due 03/01/04 at 0.930%, collateralized by a U.S. Treasury Bill maturing 06/10/04, market value $10,254,300 (repurchase proceeds $10,051,779) 10,051,000 10,051,000 ----------- TOTAL SHORT-TERM OBLIGATIONS (Cost of $12,846,534) 12,846,534 ----------- TOTAL INVESTMENTS - 100.9% (COST OF $545,209,328) (e) 627,510,558 OTHER ASSETS & LIABILITIES, NET - (0.9)% (5,425,404) NET ASSETS - 100.0% 622,085,154 NOTES TO INVESTMENT PORTFOLIO: (a) Non-income producing. (b) Investments in affiliates during the six months ended February 29, 2004: Security Name: Bank of America Corp. (As a result of a merger effective April 1, 2004, Bank of America Corp. became the parent company of the Investment Advisor.) Shares as of 08/31/03: 110,610 Shares sold: (95,350) Shares as of 02/29/04: 15,260 Net realized gain or loss: $2,860,757 Dividend income earned: $ 120,416 Value at end of period: $1,250,099 Par as of 08/31/03: $2,225,000 Par as of 02/29/04: $2,225,000 Net realized gain or loss: $ -- Interest income earned: $ 86,775 Value at end of period: $2,664,193 (c) Variable rate security. The rate reported is the rate in effect at February 29, 2004. (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 February 29, 2004, the value of these securities amounted to $4,850,124, which represents 0.8% of net assets. (e) Cost for federal income tax purposes is $545,501,760. ACRONYM NAME ------- ---- ADR American Depositary Receipt See Accompanying Notes to Financial Statements. 78 INVESTMENT PORTFOLIO____________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA SHORT TERM BOND FUND PAR ($) VALUE ($) - ---------------------------------------------------------------------- U.S. GOVERNMENT & AGENCY SECURITIES - 18.4% U.S. TREASURY NOTES & BONDS - 1.1% U.S. Treasury Inflation Index Notes, 3.625% 01/15/08 5,162,256 5,825,079 ----------- U.S. Treasury Notes & Bonds Total 5,825,079 U.S. AGENCY BONDS - 0.3% Federal Home Loan Bank, 3.875% 12/15/04 (a) 400,000 408,492 Morocco Government AID Bond, 1.218% 05/01/23 (b) 487,500 480,188 Small Business Administration, 1.625% 06/25/22 (b) 618,628 619,363 ----------- U.S. Agency Bonds Total 1,508,043 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) - 0.4% 6.500% 09/15/13-07/15/32 1,640,833 1,737,614 7.000% 11/15/13-08/15/29 530,531 567,852 ----------- Government National Mortgage Association (GNMA) Total 2,305,466 FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) - 7.6% 4.500% 08/01/18-12/01/18 27,804,687 28,115,338 5.000% 08/01/33 1,937,123 1,941,909 5.500% 05/01/17-12/01/17 8,619,446 8,988,194 6.000% 10/01/06-08/01/17 1,447,119 1,520,288 7.000% 05/01/19 1,029 1,070 7.500% 09/01/15 286,816 307,368 8.500% 07/01/30 246,406 266,292 ----------- Federal Home Loan Mortgage Corp. (FHLMC) Total 41,140,459 FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) - 1.8% 5.500% 02/01/18 4,687,158 4,888,340 6.000% 03/01/09-05/01/17 3,412,207 3,570,437 6.500% 03/01/12-07/01/32 190,874 202,494 7.500% 08/01/15 240,103 258,026 8.000% 05/01/05-07/01/31 694,236 750,522 ----------- Federal National Mortgage Association (FNMA) Total 9,669,819 AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS - 7.2% FHLMC: Series 2387, Class D, 5.500% 12/15/26 106,225 106,349 Series 2500, Class PE, 6.000% 06/15/31 1,430,000 1,484,341 Series 2617, Class UA, 3.000% 06/15/09 4,250,000 4,300,366 Series 2695, Class AT, 4.000% 10/15/26 7,670,000 7,803,671 Series 2695, Class DB, 4.000% 09/15/15 3,980,000 4,026,297 Multi-class Mtg. Partn. Ctfs., Gtd.: Series 1138, Class G, 8.500% 09/15/06 70,865 70,884 PAR ($) VALUE ($) - ---------------------------------------------------------------------- Series 1283, Class K, 7.000% 06/15/22 387,757 398,478 Series 1558, Class C, 5.500% 12/15/26 190,791 193,775 FNMA: Series 2001-34, Class AE, 6.000% 07/25/29 801,526 808,688 Series 2001-55, Class PC, 6.500% 10/25/31 1,325,953 1,384,397 Series 2002-42, Class A, 6.000% 01/25/16 810,588 827,441 Series 2002-95, Class EB, 5.000% 04/25/31 8,577,467 8,767,517 Series 2003-92, Class FA, 1.640% 09/25/18 (b) 5,884,753 5,885,584 Gtd. Remic Pass Thru Ctfs.: Remic Tr. 1991-146, Class Z, 8.000% 10/25/06 28,008 29,594 Remic Tr. 1993-92, Class C, (c) 05/25/23 1,295,000 981,197 Remic Tr. 1998-36, Class GA, 6.000% 12/18/27 973,602 989,730 GNMA, Gtd. Remic Pass Thru Ctfs.: Remic Tr. 1997-7, Class PC, 5.000% 05/16/27 1,224,807 1,243,352 Remic Tr. 2002-40, Class UL, 6.500% 11/20/31 30,000 30,868 ----------- Agency Collateralized Mortgage Obligations Total 39,332,529 ----------- TOTAL U.S. GOVERNMENT & AGENCY SECURITIES (Cost of $98,430,581) 99,781,395 CORPORATE NOTES & BONDS - 39.5% INDUSTRIAL - 17.3% Alcan, Inc. 1.580% 12/08/05 (b)(d) 3,500,000 3,500,035 Anthem, Inc., 4.875% 08/01/05 2,225,000 2,322,700 AOL Time Warner, Inc., 6.125% 04/15/06 2,460,000 2,655,422 AT&T Corp., 6.000% 03/15/09 1,650,000 1,779,954 AT&T Wireless Services, Inc. 7.500% 05/01/07 1,970,000 2,233,015 Bell Atlantic Financial Services, Inc. 7.600% 03/15/07 600,000 681,570 Boeing, Inc., 8.100% 11/15/06 1,820,000 2,076,784 Bottling Group LLC, 2.450% 10/16/06 4,300,000 4,309,675 Canadian National Railway Co., 6.450% 07/15/06 460,000 500,508 Caterpillar Financial Services Corp., 2.500% 10/03/06 5,000,000 5,026,100 See Accompanying Notes to Financial Statements. 79 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA SHORT TERM BOND FUND PAR ($) VALUE ($) - ---------------------------------------------------------------------- CORPORATE NOTES & BONDS - (CONTINUED) INDUSTRIALS - (CONTINUED) ChevronTexaco Capital Co., 3.500% 09/17/07 3,350,000 3,440,082 Coca-Cola Enterprises, Inc., 8.000% 01/04/05 650,000 686,153 Colgate-Palmolive Co., 1.245% 08/16/04 (b) 3,000,000 3,000,000 Conoco, Inc., 5.900% 04/15/04 150,000 150,815 ConocoPhillips, 8.500% 05/25/05 3,165,000 3,431,683 Costco Wholesale Corp., 5.500% 03/15/07 640,000 693,670 Cox Enterprises, Inc., 8.000% 02/15/07 (d) 1,300,000 1,484,210 CSX Corp., 6.460% 06/22/05 2,250,000 2,382,165 DaimlerChrysler NA Holding Corp., 4.750% 01/15/08 1,575,000 1,626,818 Devon Energy Corp. 2.750% 08/01/06 2,825,000 2,836,893 Fortune Brands, Inc., 2.875% 12/01/06 3,275,000 3,316,134 Gannett Co., Inc., 4.950% 04/01/05 2,000,000 2,074,180 General Mills, Inc., 2.625% 10/24/06 2,800,000 2,801,820 GTE Southwest, Inc., 6.000% 01/15/06 3,725,000 3,992,157 Honeywell International, Inc., 5.125% 11/01/06 3,120,000 3,333,782 International Business Machines Corp.: 2.375% 11/01/06 2,900,000 2,908,642 4.250% 09/15/09 600,000 623,748 Jones Intercable, Inc., 7.625% 04/15/08 1,875,000 2,160,075 Kellogg Co., 6.000% 04/01/06 1,250,000 1,346,050 Kroger Co., 7.650% 04/15/07 1,585,000 1,796,772 Lockheed Martin Corp., 7.700% 06/15/08 990,000 1,161,933 Lowe's Companies, Inc., 7.500% 12/15/05 1,675,000 1,842,098 Marathon Oil Corp., 5.375% 06/01/07 2,725,000 2,924,606 Newell Rubbermaid, Inc., 2.000% 05/01/05 3,725,000 3,722,542 Procter & Gamble Co., 4.750% 06/15/07 725,000 773,336 Target Corp., 5.950% 05/15/06 1,000,000 1,082,710 PAR ($) VALUE ($) - ---------------------------------------------------------------------- Union Pacific Corp., 3.875% 02/15/09 1,825,000 1,844,363 United Technologies Corp., 4.875% 11/01/06 2,475,000 2,636,519 USA Waste Services, Inc., 7.125% 10/01/07 2,430,000 2,740,408 Wal-Mart Stores, Inc., 4.125% 02/15/11 1,000,000 1,009,200 WellPoint Health Networks, Inc., 6.375% 06/15/06 2,350,000 2,561,970 Wyeth, 4.125% 03/01/08 2,100,000 2,199,477 ----------- Industrial Total 93,670,774 FINANCIAL - 18.0% Allstate Financial Global Fund II, 2.625% 10/22/06 (d) 2,950,000 2,968,438 American Express Credit Corp., 3.000% 05/16/08 4,000,000 3,977,160 American General Finance Corp., 3.000% 11/15/06 4,500,000 4,552,605 Bank of America Corp., 6.625% 10/15/07 (e) 5,075,000 5,710,289 Bank One Corp., 2.625% 06/30/08 3,100,000 3,026,592 Bear Stearns Co., Inc., 6.500% 05/01/06 2,600,000 2,836,964 CIT Group, Inc.: 7.250% 08/15/05 125,000 134,760 7.625% 08/16/05 1,065,000 1,153,725 Citigroup, Inc., 6.750% 12/01/05 2,700,000 2,936,628 Countrywide Home Loans, Inc.: 2.875% 02/15/07 500,000 502,200 5.250% 06/15/04 1,175,000 1,188,160 Credit Suisse First Boston USA, Inc., 5.750% 04/15/07 2,375,000 2,589,391 Equitable Companies, 9.000% 12/15/04 2,925,000 3,096,083 Fifth Third Bank, 2.700% 01/30/07 2,075,000 2,091,144 Ford Motor Credit Co., 7.375% 10/28/09 5,425,000 5,944,498 General Electric Capital Corp., 7.250% 05/03/04 515,000 520,315 General Motors Acceptance Corp., 7.750% 01/19/10 4,000,000 4,529,040 Goldman Sachs Group, Inc., 4.125% 01/15/08 2,560,000 2,654,336 Health Care Property Investors, Inc., 6.875% 06/08/05 2,075,000 2,184,145 Household Finance Corp., 6.400% 06/17/08 3,225,000 3,618,321 J.P. Morgan Chase & Co., 3.125% 12/11/06 4,000,000 4,064,440 See Accompanying Notes to Financial Statements. 80 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA SHORT TERM BOND FUND PAR ($) VALUE ($) - ---------------------------------------------------------------------- CORPORATE NOTES & BONDS - (CONTINUED) FINANCIAL - (CONTINUED) Lehman Brothers Holdings, Inc.: 4.000% 01/22/08 2,500,000 2,578,450 8.750% 03/15/05 500,000 536,710 Merrill Lynch & Co., Inc., 2.470% 03/10/06 2,460,000 2,484,280 Morgan Stanley, 6.100% 04/15/06 2,500,000 2,705,975 Security Capital Group, Inc., 7.150% 06/15/07 6,315,000 7,147,633 U.S. Bancorp, 3.125% 03/15/08 5,750,000 5,765,065 USA Education, Inc., 5.625% 04/10/07 4,000,000 4,344,840 Wachovia Corp., 4.950% 11/01/06 3,300,000 3,519,186 Washington Mutual, Inc., 5.625% 01/15/07 2,600,000 2,806,466 Wells Fargo & Co., 5.900% 05/21/06 5,200,000 5,618,652 ----------- Financial Total 97,786,491 UTILITIES - 1.6% Deutsche Telekom International Finance BV, 8.500% 06/15/10 1,450,000 1,761,721 Dominion Resources, Inc., 2.800% 02/15/05 2,050,000 2,072,571 FPL Group Capital, Inc., 6.875% 06/01/04 250,000 253,175 Kinder Morgan Energy Partners LP, 8.000% 03/15/05 915,000 971,611 Sprint Capital Corp., 6.375% 05/01/09 1,250,000 1,375,175 TCI Communications, Inc., 7.250% 08/01/05 1,125,000 1,208,138 Virginia Electric & Power Co., 5.375% 02/01/07 1,200,000 1,284,444 ----------- Utilities Total 8,926,835 INTERNATIONAL - 2.6% Canadian Government Bond, 6.750% 08/28/06 1,000,000 1,113,130 Province of Ontario, 3.500% 09/17/07 3,500,000 3,588,095 Quebec Province: 5.500% 04/11/06 4,125,000 4,396,260 6.500% 01/17/06 1,100,000 1,191,366 Republic of Italy, 2.500% 03/31/06 1,950,000 1,972,074 United Mexican States, 4.625% 10/08/08 2,000,000 2,048,000 ----------- International Total 14,308,925 ----------- TOTAL CORPORATE NOTES & BONDS (Cost of $211,005,218) 214,693,025 PAR ($) VALUE ($) - ---------------------------------------------------------------------- OTHER SECURITIZED LOANS - 34.8% ASSET-BACKED SECURITIES - 13.7% Americredit Automobile Receivables Trust: Series 2000-1, Class B, 7.160% 09/05/05 1,525,683 1,550,659 Series 2001-B, Class A4, 5.370% 06/12/08 919,707 949,534 Chase Manhattan Auto Owner Trust, Series 2000-A, Class A4, 6.260% 06/15/07 1,212,900 1,242,082 Cityscape Home Equity Loan Trust, Series 1997-C, Class A3, 7.380% 07/25/28 16,046 16,080 Ford Credit Auto Owner Trust, Series 2002-B, Class A3A, 4.140% 12/15/05 2,160,425 2,183,196 Harley Davidson Motorcycle Trust, Series 2002-2, Class A2, 3.090% 06/15/10 1,525,000 1,562,668 Honda Auto Receivables Owner Trust: Series 2001-2, Class A4, 5.090% 10/18/06 2,750,000 2,772,770 Series 2002-3, Class A3, 3.000% 05/18/06 5,049,198 5,099,791 IMC Home Equity Loan Trust: Series 1995-3, Class A5, 7.500% 04/25/26 1,254,825 1,254,544 Series 1997-3, Class A6, 7.520% 08/20/28 437,994 438,958 Series 1997-3, Class A7, 7.080% 08/20/28 227,268 227,759 Keycorp Student Loan Trust: Series 1997-1, Class A2, 1.827% 01/27/23 (d) 4,317,500 4,375,424 Series 2003-A, Class 2A2, 1.434% 10/25/25 (b) 11,580,000 11,621,920 Money Store Home Equity Trust, Series 1998-A, Class AF7, 6.870% 04/15/39 2,000,000 2,039,640 Nissan Auto Receivables Owner Trust, Series 2002-B, Class A4, 4.600% 09/17/07 2,500,000 2,587,275 Residential Asset Mortgage Products, Series 2003-RS8, Class AII8, 1.430% 09/25/33 3,688,806 3,694,118 Residential Funding Mortgage Securities I, Inc., Series 2003-HS3, Class A2B, 1.430% 08/25/33 257,710 257,964 SLM Student Loan Trust: Series 1996-1, Class CTFS, 1.927% 07/25/11 (b) 5,500,000 5,555,990 Series 1996-4, Class CTFS, 1.877% 07/25/11 (b) 6,030,000 6,036,271 Series 1997-2, Class A2, 1.487% 01/25/10 (b) 1,671,747 1,672,301 See Accompanying Notes to Financial Statements. 81 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA SHORT TERM BOND FUND PAR ($) VALUE ($) - ---------------------------------------------------------------------- OTHER SECURITIZED LOANS - (CONTINUED) ASSET-BACKED SECURITIES - (CONTINUED) Series 1997-4, Class CTFS, 1.947% 01/25/13 (b) 8,950,000 9,070,266 Series 2001-2, Class A1T, 1.717% 07/27/09 (b) 6,848,069 6,865,121 Toyota Auto Receivables Owner Trust, Series 2001-C, Class A4, 4.720% 09/15/08 1,675,000 1,715,853 University Support Services Inc., Series 1995-A, Class A, 1.370% 09/20/15 1,957,638 1,979,133 ----------- Asset-Backed Securities Total 74,769,317 COLLATERALIZED MORTGAGE OBLIGATIONS - 20.3% ABN Amro Mortgage Corp., Series 2002-1, Class IA2, 6.500% 02/25/32 8,653,502 8,737,692 Advanta Mortgage Loan Trust, Series 1999-3, Class A4, 7.750% 10/25/26 275,850 286,332 Amersco Residential Securities Mortgage Loan & Trust: Series 1997-2, Class A9, 1.350% 06/25/27 175,932 175,969 Series 1998-3, Class A7 1.330% 07/25/28 329,355 330,488 Bank of America Mortgage Securities, Series 2003-1, Class 2A2, 5.250% 02/25/18 (e) 3,383,499 3,444,199 Bear Stearns Asset-Backed Securities, Inc.: Series 2002-AC5, Class 2A4, 5.625% 11/25/32 344,319 344,560 Series 2003-AC2, Class A3, 3.500% 06/25/33 5,611,987 5,603,007 Countrywide Home Loans, Inc.: Series 1999-A1, Class A1, 6.750% 03/25/29 65,092 65,337 Series 2002-32, Class 2A3, 5.000% 01/25/18 2,246,831 2,263,907 Series 2002-J5, Class 1A1, 5.750% 01/25/33 491,969 502,290 Series 2003-J7, Class 4A2, 1.490% 08/25/18 (b) 12,537,615 12,457,750 Series 2004-2CB, Class 1A4, 1.490% 03/25/34 1,238,792 1,238,792 Series 2004-J2, Class A2, 1.610% 03/25/34 10,600,000 10,616,960 First Horizon Mortgage Pass-Through Trust: Series 2003-2, Class 2A1, 1.590% 03/25/18 (b) 10,722,026 10,780,890 Series 2003-4, Class 2A2, 1.590% 06/25/18 (b) 3,170,783 3,184,861 GMAC Mortgage Corp. Loan Trust, Series 2003-J3, Class A1, 1.590% 05/25/18 (b) 6,167,358 6,167,359 Ocwen Residential MBS Corp., Series 1998-R1, Class A1, 7.000% 10/25/40 (d) 334,817 348,364 PAR ($) VALUE ($) - ---------------------------------------------------------------------- PNC Mortgage Securities Corp.: Series 1996-PR1, Class A, (c) 04/28/27 (b)(d) 71,344 69,203 Series 1998-12, Class 4A5, 6.475% 01/25/29 11,084 11,121 Series 1998-14, Class 2A1, 6.250% 01/25/14 1,633,609 1,676,998 Residential Accredited Loans, Inc., Series 2002-QS9, Class A1, 1.690% 07/25/32 (b) 364,292 364,547 Residential Asset Securitization Trust: Series 2002-A14J, Class A14, 6.000% 01/25/33 1,566,527 1,621,455 Series 2003-A15, Class 1A2, 1.540% 02/25/34 11,350,116 11,337,548 Residential Funding Mortgage Securities I, Inc.: Series 1999-S25, Class A1, 6.750% 12/25/14 246,016 246,811 Series 2002-S16, Class A7, 5.500% 10/25/17 1,334,676 1,347,756 Series 2003-S14, Class A5, 1.490% 07/25/18 11,872,055 11,826,703 SACO I, Inc., Series 1997-2, Class 1A5, 7.000% 08/25/36 (d) 1,280,629 1,312,645 Structured Asset Securities Corp.: Series 2002-17, Class 1A3, 6.000% 09/25/32 1,220,753 1,234,230 Series 2003-14, Class 1A3, 5.500% 05/25/33 710,919 728,650 Washington Mutual Mortgage Securities Corp.: Series 2002-MS7, Class 1A14, 6.000% 11/25/32 1,172,290 1,172,044 Series 2003-MS5, Class 1A4, 1.590% 03/25/18 (b) 5,729,686 5,761,830 Series 2003-S4, Class 1A3, 1.590% 06/25/18 (b) 4,600,457 4,626,541 Wells Fargo Mortgage-Backed Securities Trust, Series 2002-D, Class 1A1, 5.500% 08/25/32 370,947 380,736 Collateralized Mortgage Obligations Total 110,267,575 COMMERCIAL MORTGAGE-BACKED SECURITIES - 0.8% GMAC Commercial Mortgage Asset Corp., Series 2001-FLAA, Class B1, 1.594% 06/15/13 (b)(d) 1,492,173 1,491,860 Merrill Lynch Mortgage Investors, Inc., Series 1996-C1, Class A3, 7.420% 04/25/28 300,115 310,700 Nationslink Funding Corp., Series 1999-SL, Class A5, 6.888% 11/10/30 2,260,000 2,546,907 ----------- Commercial Mortgage-Backed Securities Total 4,349,467 ----------- TOTAL OTHER SECURITIZED LOANS (Cost of $189,141,224) 189,386,359 See Accompanying Notes to Financial Statements. 82 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA SHORT TERM BOND FUND PAR ($) VALUE ($) - ---------------------------------------------------------------------- SHORT-TERM OBLIGATIONS - 6.6% U.S. TREASURY BILL - 2.8% 0.860% 05/06/04 15,275,000 15,250,916 ----------- REPURCHASE AGREEMENT - 3.8% Repurchase agreement with State Street Bank & Trust Co., dated 02/27/04, due 03/01/04 at 0.930%, collateralized by U.S. Treasury Notes with various maturities to 08/15/13, market value $21,313,594 (repurchase proceeds $20,893,619) 20,892,000 20,892,000 ----------- TOTAL SHORT-TERM OBLIGATIONS (Cost of $36,142,916) 36,142,916 ----------- TOTAL INVESTMENTS - 99.3% (COST OF $534,719,939)(f) 540,003,695 OTHER ASSETS & LIABILITIES, NET - 0.7% 3,480,576 NET ASSETS - 100.0% 543,484,271 NOTES TO INVESTMENT PORTFOLIO: (a) This security with a market value of $408,492 is being used to collateralize open futures contracts. (b) Variable rate security. The rate reported is the rate in effect at February 29, 2004. (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 February 29, 2004, these securities amounted to $15,550,179, which represents 2.9% of net assets. (e) Investments in affiliates during the six months ended February 29, 2004: Security Name: Bank of America Corp. (As a result of a merger effective April 1, 2004, Bank of America Corp. became the parent company of the Investment Advisor.) Par as of 08/31/03: $5,075,000 Par as of 02/29/04: $5,075,000 Net realized gain or loss: $ -- Interest income earned: $ 168,109 Value at end of period: $5,710,289 Security Name: Bank of America Mortgage Securities (As a result of a merger effective April 1, 2004, Bank of America Corp. became the parent company of the Investment Advisor.) Par as of 08/31/03: $ -- Par purchased: $3,383,499 Par as of 02/29/04: $3,383,499 Net realized gain or loss: $ -- Interest income earned: $ 60,687 Value at end of period: $3,444,199 (f) Cost for federal income tax purposes is $534,647,085. Short futures contracts open at February 29, 2004: PAR VALUE UNREALIZED COVERED BY DEPRECIATION AT TYPE CONTRACTS EXPIRATION 02/29/04 - ---------------------------------------------------------------------- 2 Yr. U.S. Treasury Notes $49,000,000 June-2004 $(68,907) -------- See Accompanying Notes to Financial Statements. 83 INVESTMENT PORTFOLIO____________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FIXED INCOME SECURITIES FUND PAR ($) VALUE ($) - ---------------------------------------------------------------------- U.S. GOVERNMENT & AGENCY SECURITIES - 39.7% U.S. TREASURY NOTES & BONDS - 2.2% U.S. Treasury Bond, 7.250% 05/15/16 2,825,000 3,606,731 U.S. Treasury Inflation Index Note, 3.625% 01/15/08 4,460,645 5,033,383 ----------- U.S. Treasury Notes & Bonds Total 8,640,114 FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) - 13.5% 3.500% 10/01/18 5,200,022 4,953,900 4.500% 05/01/18-01/01/19 39,980,613 40,427,300 5.000% 08/01/33-01/01/34 2,670,065 2,676,580 6.000% 05/01/17-07/01/17 5,960,220 6,285,544 6.500% 08/01/32 386,797 406,910 ----------- Federal Home Loan Mortgage Corp. (FHLMC) Total 54,750,234 FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) - 4.4% 5.000% 06/01/18-08/01/18 11,946,142 12,278,955 5.976% 06/01/32 (a) 103,109 107,056 6.000% 03/01/09-03/01/33 4,142,484 4,289,590 6.149% 07/01/32 (a) 1,000,959 1,040,346 6.500% 07/01/32 150,271 158,111 ----------- Federal National Mortgage Association (FNMA) Total 17,874,058 FEDERAL HOUSING ADMINISTRATION (FHA) - 0.5% FHA Insured Project, Pool #071-94016, 8.625% 05/01/23 2,111,046 2,153,266 ----------- Federal Housing Administration (FHA) Total 2,153,266 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) - 0.7% 5.000% 08/15/33-01/15/34 2,937,483 2,949,953 ----------- Government National Mortgage Association (GNMA) Total 2,949,953 AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS - 18.4% FHLMC GNMA Multiclass Mtg. Partn. Ctfs. Gtd., Series 24, Class J, 6.250% 11/25/23 2,310,000 2,456,613 FHLMC Multiclass Mtg. Partn. Ctfs. Gtd.: Series 1558, Class C, 6.500% 07/15/23 760,874 772,776 Series 1602, Class PJ, 6.500 10/15/23 510,000 556,730 Series 2085, Class PD, 6.250% 11/15/26 558,272 559,965 Series 2113, Class MU, 6.500% 08/15/27 717,683 726,942 Series 2235, Class VN, 7.000% 06/15/14 2,891,073 2,932,896 Series 2462, Class JE, 6.500% 11/15/30 4,680,000 4,851,938 Series 2500, Class PE, 6.000% 06/15/31 5,630,000 5,843,945 PAR ($) VALUE ($) - ---------------------------------------------------------------------- Series 2687, Class MQ, 4.500% 10/15/18 3,166,000 3,278,456 Series 2689, Class PC, 4.000% 09/15/15 5,900,000 5,923,798 Series 2695, Class AT, 4.000% 10/15/26 7,720,000 7,854,543 Series 2695, Class BO, 4.500% 08/15/28 2,430,000 2,448,451 Series 2695, Class DB, 4.000% 09/15/15 7,155,000 7,238,229 Series 2695, Class DG, 4.000% 10/15/18 9,000,000 8,430,830 Series 2700, Class PD, 4.500% 02/15/27 2,050,000 2,096,697 Series 2702, Class AB, 4.500% 07/15/27 6,880,000 7,043,571 FNMA Gtd. Remic Pass Thru Ctfs.: Remic Tr. 1996-W2, Class A7, 7.800% 06/25/26 715,103 778,985 Remic Tr. 2001-55, Class PC, 6.500% 10/25/31 3,836,890 4,006,008 Remic Tr. 2001-56, Class KD, 6.500% 07/25/30 2,309,075 2,353,881 Remic Tr. 2003-87, Class TG, 4.500% 11/25/14 2,050,000 2,089,951 GNMA Gtd. Remic Pass Thru Ctfs., Remic Tr. 2003-97, Class NC, 4.500% 04/16/28 2,090,000 2,140,911 ----------- Agency Collateralized Mortgage Obligations Total 74,386,116 TOTAL U.S. GOVERNMENT & AGENCY SECURITIES (Cost of $158,065,456) 160,753,741 CORPORATE NOTES & BONDS - 43.3% INDUSTRIALS - 26.6% Acetex Corp., 10.875% 08/01/09 215,000 236,500 AdvancePCS, 8.500% 04/01/08 250,000 273,750 Airgas, Inc., 9.125% 10/01/11 215,000 241,875 Alcan, Inc., 7.250% 03/15/31 2,400,000 2,877,528 Allied Waste North America, Inc., 10.000% 08/01/09 550,000 589,875 American Axle & Manufacturing, Inc., 9.750% 03/01/09 600,000 630,000 AmerisourceBergen Corp., 8.125% 09/01/08 400,000 445,000 Anadarko Finance Co., 7.500% 05/01/31 1,610,000 1,942,594 Anheuser-Busch Companies, Inc., 5.750% 04/01/10 530,000 584,442 See Accompanying Notes to Financial Statements. 84 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FIXED INCOME SECURITIES FUND PAR ($) VALUE ($) - ---------------------------------------------------------------------- CORPORATE NOTES & BONDS - (CONTINUED) INDUSTRIALS - (CONTINUED) Anthem, Inc., 6.800% 08/01/12 1,550,000 1,788,529 Apogent Technologies, Inc., 6.500% 05/15/13 200,000 209,500 Arch Western Finance LLC, 6.750% 07/01/13 (b) 380,000 399,000 AT&T Corp., 8.750% 11/15/31 1,390,000 1,640,117 AT&T Wireless Services, Inc., 8.750% 03/01/31 1,200,000 1,540,524 Autonation, Inc., 9.000% 08/01/08 115,000 132,537 Ball Corp., 7.750% 08/01/06 600,000 648,000 Boeing Co.: 5.125% 02/15/13 335,000 345,432 6.125% 02/15/33 1,475,000 1,530,121 BP Amoco PLC, 5.900% 04/15/09 1,800,000 2,012,742 British Sky Broadcasting Group, 7.300% 10/15/06 200,000 222,288 Canadian National Railway Co., 7.195% 01/02/16 1,906,912 2,303,550 Canandaigua Brands, Inc., 8.500% 03/01/09 650,000 677,625 Cascades, Inc., 7.250% 02/15/13 235,000 245,575 Chesapeake Energy Corp.: 7.500% 09/15/13 320,000 345,600 8.125% 04/01/11 25,000 27,562 8.375% 11/01/08 165,000 179,437 9.000% 08/15/12 45,000 51,919 Cinemark USA, Inc., 9.000% 02/01/13 435,000 489,375 Coca-Cola Enterprises, Inc., 6.750% 01/15/38 1,000,000 1,140,860 Comcast Corp., 7.050% 03/15/33 870,000 959,523 Corrections Corp. of America: 7.500% 05/01/11 75,000 78,750 7.500% 05/01/11 (b) 200,000 210,000 Costco Wholesale Corp., 5.500% 03/15/07 1,900,000 2,059,334 Cott Beverages, Inc., 8.000% 12/15/11 570,000 621,300 Couche-Tard, 7.500% 12/15/13 (b) 85,000 90,950 Cox Communications, Inc., 7.875% 08/15/09 235,000 279,725 Cox Enterprises, Inc., 8.000% 02/15/07 (b) 1,350,000 1,541,295 CSX Corp., 4.875% 11/01/09 960,000 1,008,192 PAR ($) VALUE ($) - ---------------------------------------------------------------------- DaimlerChrysler NA Holding Corp., 8.500% 01/18/31 1,175,000 1,427,425 Deutsche Telekom International Finance BV, 8.500% 06/15/10 1,390,000 1,688,822 Dex Media East LLC, 12.125% 11/15/12 425,000 501,500 Diageo Capital PLC, 3.375% 03/20/08 2,570,000 2,597,113 DirecTV Holdings LLC, 8.375% 03/15/13 210,000 238,875 EchoStar DBS Corp., 5.750% 10/01/08 (b) 375,000 382,500 EquiStar Chemicals LP: 10.125% 09/01/08 25,000 27,125 10.625% 05/01/11 100,000 109,000 Ethyl Corp., 8.875% 05/01/10 50,000 54,000 Extended Stay America, Inc., 9.875% 06/15/11 500,000 558,750 General Electric Co., 5.000% 02/01/13 2,875,000 2,974,245 General Mills, Inc., 2.625% 10/24/06 2,440,000 2,441,586 Grant Prideco, Inc.: 9.000% 12/15/09 460,000 515,200 9.625% 12/01/07 40,000 45,200 Group 1 Automotive, Inc., 8.250% 11/15/13 40,000 43,800 Harrah's Operating Co., Inc., 7.875% 12/15/05 250,000 271,250 Hasbro, Inc., 6.150% 07/15/08 150,000 159,750 Houghton Mifflin Co., 9.875% 02/01/13 405,000 441,450 International Business Machines Corp., 5.875% 11/29/32 3,460,000 3,567,018 International Game Technology, 8.375% 05/15/09 250,000 298,125 International Paper Co., 4.250% 01/15/09 510,000 520,399 Iron Mountain, Inc., 8.625% 04/01/13 500,000 545,000 ITT Corp., 6.750% 11/15/05 275,000 288,062 John Deere Capital Corp., 3.900% 01/15/08 1,400,000 1,443,638 K & F Industries, Inc., 9.625% 12/15/10 285,000 318,131 KB Home, 8.625% 12/15/08 500,000 561,250 Kennametal, Inc., 7.200% 06/15/12 165,000 181,891 Key Energy Services, Inc.: 6.375% 05/01/13 170,000 176,800 8.375% 03/01/08 75,000 81,000 Kinder Morgan Energy Partners LP, 6.750% 03/15/11 2,000,000 2,273,280 See Accompanying Notes to Financial Statements. 85 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FIXED INCOME SECURITIES FUND PAR ($) VALUE ($) - ---------------------------------------------------------------------- CORPORATE NOTES & BONDS - (CONTINUED) INDUSTRIALS - (CONTINUED) Kroger Co., 7.650% 04/15/07 1,450,000 1,643,734 L-3 Communications Corp., 7.625% 06/15/12 560,000 621,600 Lamar Media Corp., 7.250% 01/01/13 325,000 351,000 Lear Corp., 7.960% 05/15/05 600,000 639,000 LIN Television Corp., 6.500% 05/15/13 300,000 306,000 Lockheed Martin Corp., 8.500% 12/01/29 1,500,000 2,011,545 Lowe's Companies, Inc., 6.500% 03/15/29 1,510,000 1,688,406 MacDermid, Inc., 9.125% 07/15/11 115,000 129,087 Marathon Oil Corp., 6.800% 03/15/32 2,450,000 2,730,378 MGM Mirage, Inc.: 6.000% 10/01/09 25,000 26,000 9.750% 06/01/07 325,000 373,750 Nalco Co., 7.750% 11/15/11 (b) 175,000 182,875 Newell Rubbermaid, Inc., 4.000% 05/01/10 2,545,000 2,497,027 Nextel Communications, Inc.: 7.375% 08/01/15 450,000 484,875 9.375% 11/15/09 125,000 135,000 9.500% 02/01/11 40,000 44,900 Occidental Petroleum Corp., 4.250% 03/15/10 1,825,000 1,860,880 Offshore Logistics, Inc., 6.125% 06/15/13 405,000 396,900 Omnicare, Inc., 8.125% 03/15/11 275,000 303,187 Owens-Illinois, Inc., 7.350% 05/15/08 250,000 249,375 Park Place Entertainment Corp., 9.375% 02/15/07 600,000 672,000 Peabody Energy Corp., 6.875% 03/15/13 400,000 426,000 Pepsi Bottling Holdings, Inc., 5.625% 02/17/09 (b) 2,050,000 2,259,469 Phillips Petroleum Co., 8.500% 05/25/05 2,675,000 2,900,396 Pogo Producing Co., 8.250% 04/15/11 65,000 73,125 Pride International, Inc., 9.375% 05/01/07 269,000 275,725 Procter & Gamble Co., 4.750% 06/15/07 1,950,000 2,080,007 Province Healthcare Co., 7.500% 06/01/13 275,000 282,563 PAR ($) VALUE ($) ---------------------------------------------------------------------- R.H. Donnelley Financial Corp.: 8.875% 12/15/10 (b) 50,000 56,250 10.875% 12/15/12 75,000 88,875 10.875% 12/15/12 (b) 360,000 426,600 Rogers Cable, Inc., 7.875% 05/01/12 470,000 537,093 Royal Caribbean Cruises Ltd. 6.875% 12/01/13 100,000 103,500 Russel Metals, Inc., 6.375% 03/01/14 (b) 25,000 25,091 Scotts Co., 6.625% 11/15/13 (b) 175,000 181,125 Select Medical Corp., 9.500% 06/15/09 500,000 551,250 Silgan Holdings, Inc., 6.750% 11/15/13 (b) 385,000 392,700 Sinclair Broadcasting Group, Inc., 8.000% 03/15/12 440,000 475,200 Six Flags, Inc., 9.625% 06/01/14 (b) 100,000 105,250 Smurfit-Stone Container Corp.: 8.250% 10/01/12 130,000 140,400 9.750% 02/01/11 455,000 507,325 Speedway Motorsports, Inc., 6.750% 06/01/13 200,000 208,500 Sprint Capital Corp., 6.875% 11/15/08 950,000 975,014 Station Casinos, Inc.: 6.500% 02/01/14 (b) 40,000 40,500 6.875% 03/01/16 (b) 500,000 505,000 Suburban Propane Partners, 6.875% 12/15/13 (b) 150,000 153,938 Sun International Hotel, 8.875% 08/15/11 30,000 33,075 Synagro Technologies, Inc., 9.500% 04/01/09 100,000 108,500 TCI Communications, Inc., 7.250% 08/01/05 800,000 859,120 Teekay Shipping Corp., 8.875% 07/15/11 525,000 598,500 Time Warner, Inc., 6.625% 05/15/29 2,185,000 2,278,015 Toll Corp., 8.250% 12/01/11 390,000 432,900 TransDigm, Inc., 8.375% 07/15/11 300,000 316,500 Triad Hospitals, Inc., 8.750% 05/01/09 600,000 657,000 Union Pacific Corp., 3.875% 02/15/09 2,340,000 2,364,827 United Technologies Corp., 7.125% 11/15/10 2,125,000 2,513,344 Universal Compression, Inc., 7.250% 05/15/10 125,000 132,500 Verizon Global Funding Corp., 7.750% 12/01/30 3,000,000 3,614,190 Viacom, Inc., 5.500% 05/15/33 1,335,000 1,288,796 See Accompanying Notes to Financial Statements. 86 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FIXED INCOME SECURITIES FUND PAR ($) VALUE ($) - ---------------------------------------------------------------------- CORPORATE NOTES & BONDS - (CONTINUED) INDUSTRIALS - (CONTINUED) Vintage Petroleum, Inc.: 7.875% 05/15/11 25,000 26,500 8.250% 05/01/12 25,000 27,375 Wal-Mart Stores, Inc., 4.125% 02/15/11 1,020,000 1,029,384 Waste Management, Inc., 7.375% 08/01/10 1,655,000 1,935,589 Westinghouse Air Brake, 6.875% 07/31/13 200,000 211,000 Westport Resources Corp., 8.250% 11/01/11 360,000 397,800 Wyeth, 5.500% 02/01/14 1,710,000 1,782,042 XTO Energy, Inc., 7.500% 04/15/12 350,000 408,625 Yum! Brands, Inc., 8.500% 04/15/06 500,000 555,000 ----------- Industrials Total 108,022,108 FINANCIALS - 12.8% Allstate Financial Global Fund II, 2.625% 10/22/06 (b) 2,500,000 2,515,625 American General Finance Corp., 5.375% 09/01/09 850,000 918,986 Bank One Corp., 2.625% 06/30/08 2,800,000 2,733,696 Bear Stearns & Co., Inc., 6.500% 05/01/06 1,635,000 1,784,014 CIT Group, Inc., 7.250% 08/15/05 970,000 1,045,738 Citigroup, Inc., 7.250% 10/01/10 3,095,000 3,649,160 Countrywide Home Loan Bank, 2.875% 02/15/07 1,000,000 1,004,400 Ford Motor Credit Co., 7.375% 10/28/09 3,700,000 4,054,312 General Electric Capital Corp., 6.750% 03/15/32 665,000 759,550 General Motors Acceptance Corp., 7.750% 01/19/10 3,600,000 4,076,136 Goldman Sachs Group, Inc., 6.345% 02/15/34 1,550,000 1,564,492 Health Care Property Investors, Inc., 6.450% 06/25/12 1,785,000 1,986,759 Health Care REIT, Inc., 7.500% 08/15/07 500,000 560,665 Household Finance Corp., 6.400% 06/17/08 2,550,000 2,860,998 iStar Financial, Inc., 7.000% 03/15/08 200,000 215,000 J.P. Morgan Chase & Co., 5.750% 01/02/13 2,545,000 2,739,082 Lehman Brothers Holdings, Inc., 4.000% 01/22/08 1,000,000 1,031,380 PAR ($) VALUE ($) - ---------------------------------------------------------------------- Merrill Lynch & Co., Inc., 4.125% 01/15/09 1,885,000 1,933,388 Morgan Stanley, 6.100% 04/15/06 1,650,000 1,785,943 SLM Corp., 5.125% 08/27/12 2,900,000 2,996,773 US Bank NA, 6.375% 08/01/11 3,000,000 3,396,540 Wachovia Corp., 3.500% 08/15/08 3,660,000 3,701,321 Wells Fargo & Co., 4.875% 06/12/07 4,175,000 4,469,129 ----------- Financials Total 51,783,087 UTILITIES - 1.2% Centerpoint Energy Houston, 5.750% 01/15/14 1,800,000 1,903,374 Dominion Resources, Inc., 2.800% 02/15/05 2,750,000 2,780,277 ----------- Utilities Total 4,683,651 INTERNATIONAL - 2.7% British Columbia Province, 5.375% 10/29/08 1,900,000 2,082,058 Hydro-Quebec, 6.970% 03/01/05 1,000,000 1,050,370 Ontario Province, 7.000% 01/30/07 2,490,000 2,803,964 Republic of Italy, 2.500% 03/31/06 2,750,000 2,781,130 United Mexican States, 8.000% 09/24/22 2,105,000 2,373,388 ----------- International Total 11,090,910 TOTAL CORPORATE NOTES & BONDS (Cost of $165,843,053) 175,579,756 OTHER SECURITIZED LOANS - 12.1% ASSET-BACKED SECURITIES - 4.3% Cityscape Home Equity Loan Trust, Series 1997-4, Class A4, 7.440% 10/25/18 (a) 656,972 660,697 ContiMortgage Home Equity Loan Trust, Series 1999-3, Class A6, 7.680% 12/25/29 (a) 2,700,000 2,851,308 IMC Home Equity Loan Trust: Series 1995-3, Class A5, 7.500% 04/25/26 1,851,381 1,850,967 Series 1997-3, Class A6, 7.520% 08/20/28 1,610,877 1,614,421 Series 1997-5, Class A9, 7.310% 11/20/28 4,557,522 4,686,956 Nationslink Funding Corp., Series 1999-SL, Class A5, 6.888% 05/10/07 3,120,000 3,516,084 See Accompanying Notes to Financial Statements. 87 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FIXED INCOME SECURITIES FUND PAR ($) VALUE ($) - ---------------------------------------------------------------------- OTHER SECURITIZED LOANS - (CONTINUED) ASSET-BACKED SECURITIES - (CONTINUED) New Century Home Equity Loan Trust, Series 1999-NCA, Class A7, 7.320% 07/25/29 (a) 1,161,293 1,192,532 Salomon Brothers Mortgage Securities VII, Inc., Series 1998-AQ1, Class A5, 7.150% 06/25/28 1,177,145 1,181,618 ----------- Asset-Backed Securities Total 17,554,583 COLLATERALIZED MORTGAGE OBLIGATIONS - 7.2% Bear Stearns Asset-Backed Securities, Inc.: Series 2002-AC5, Class 2A4, 5.625% 11/25/32 667,979 668,447 Series 2003-AC7, Class A1, 5.000% 01/25/34 (a) 7,778,433 8,069,269 Bear Stearns Mortgage Securities, Inc., Series 1996-2, Class A1, 0.650% 01/28/25 (a) 231,327 229,863 Countrywide Alternative Loan Trust, Series 2004-2CB, Class 1A4, 1.490% 03/25/34 (a) 4,291,174 4,291,174 Countrywide Home Loans, Inc.: Series 2002-5, Class 2A1, 6.000% 04/25/17 1,203,535 1,220,541 Series 2003-49, Class A9, 4.648% 12/19/33 (a) 4,638,488 4,689,790 Credit Suisse First Boston Mortgage Securities Corp., Series 2001-11, Class 1A3, 7.000% 06/25/31 256,255 266,646 IMPAC Secured Assets Common Owner Trust, Series 2002-3, Class A3, 6.360% 08/25/32 (a) 3,489,156 3,536,922 PNC Mortgage Securities Corp., Series 1998-12, Class 4A4, 6.500% 01/25/29 60,964 60,940 Residential Funding Mortgage Securities I, Series 2002-S16, Class A7, 5.500% 10/25/17 1,048,216 1,058,489 Structured Asset Securities Corp., Series 2003-21, Class 1A3, 5.500% 07/25/33 4,930,467 5,087,125 ----------- Collateralized Mortgage Obligations Total 29,179,206 PAR ($) VALUE ($) - ---------------------------------------------------------------------- COMMERCIAL MORTGAGE-BACKED SECURITIES - 0.6% GMAC Commercial Mortgage Asset Corp., Series 2001-FLAA, Class B1, 1.610% 06/15/13 (a)(b) 2,347,316 2,346,823 ----------- Commercial Mortgage-Backed Securities Total 2,346,823 TOTAL OTHER SECURITIZED LOANS (Cost of $48,049,954) 49,080,612 SHORT-TERM OBLIGATIONS - 4.1% U.S. TREASURY BILL - 1.6% 0.940% 05/06/04 6,500,000 6,489,632 ----------- REPURCHASE AGREEMENT - 2.5% Repurchase agreement with State Street Bank & Trust Co., dated 02/27/04, due 03/01/04 at 0.930%, collateralized by a U.S. Treasury Note maturing 05/13/04, market value $10,359,038 (repurchase proceeds $10,155,787) 10,155,000 10,155,000 ----------- Total Short-Term Obligations (Cost of $16,644,632) 16,644,632 ----------- TOTAL INVESTMENTS - 99.2% (COST OF $388,603,095) (c) 402,058,741 OTHER ASSETS & LIABILITIES, NET - 0.8% 3,417,590 NET ASSETS - 100.0% 405,476,331 NOTES TO INVESTMENT PORTFOLIO: (a) Variable rate security. The rate reported is the rate in effect at February 29, 2004. (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 February 29, 2004, the value of these securities amounted to $11,814,991, which represents 2.9% of net assets. (c) Cost for federal income tax purposes is $389,209,424. See Accompanying Notes to Financial Statements. 88 INVESTMENT PORTFOLIO____________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA NATIONAL MUNICIPAL BOND FUND PAR VALUE ($) - ---------------------------------------------------------------------- MUNICIPAL BONDS - 92.7% ALASKA - 3.1% Industrial Development & Export Authority, Snettisham Hydroelectric, Series 1: Pre-refunded (AMT), 5.500% 01/01/08 5,000 5,579 Unrefunded (AMT), 5.500% 01/01/08 95,000 106,307 Municipal Bond Bank Authority, Series C, 5.500% 09/15/16 100,000 114,899 Palmer Valley Hospital Association, 5.350% 12/01/12 125,000 145,932 State Housing Finance Corp., Veterans Mortgage, Series A2 (AMT), 6.000% 06/01/15 115,000 122,519 ----------- Alaska Total 495,236 ARKANSAS - 1.7% Little Rock Waste Disposal Revenue, Series 2002, 5.000% 05/01/16 250,000 272,893 ----------- Arkansas Total 272,893 CALIFORNIA - 1.7% State Department of Water Resource, Power Supply Revenue, Series 2002, 5.000% 05/01/16 250,000 274,037 ----------- California Total 274,037 COLORADO - 0.1% Housing Finance Authority, Single Family, 4.875% 04/01/07 25,000 25,186 ----------- Colorado Total 25,186 IDAHO - 0.6% Health Facilities Authority, Bingham Memorial Hospital Project, 5.850% 03/01/19 100,000 100,704 ----------- Idaho Total 100,704 ILLINOIS - 10.7% Chicago Motor Fuel Tax Revenue, Series 2003 A, 5.250% 01/01/17 250,000 281,417 Chicago Park District Aquarium & Museum, 5.800% 01/01/18 150,000 172,929 Chicago Public Building Community Building Revenue, Chicago School Reform, Series 1999 B, 5.250% 12/01/16 250,000 288,565 SHARES VALUE ($) - ----------------------------------------------------------------------- Lake County Community Unified School District No. 095, Lake Zurich, Capital Appreciation, Series 2000, (a) 12/01/17 340,000 185,793 Madison & St. Clair Counties School, District No. 010, Collinsville School Building, 5.500% 02/01/12 250,000 288,708 Regional Transportation Authority, Series A, 6.400% 06/01/12 100,000 123,014 State Educational Facilities Authority, DePaul University, Series 2003 C, 5.000% 09/01/18 250,000 270,715 Will County Forest Preservation District, Series 1999 B, (a) 12/01/11 150,000 116,324 ----------- Illinois Total 1,727,465 INDIANA - 5.2% Board Bank Revenue, Special Program, Hendricks, Series 2002 D, 5.375% 04/01/15 250,000 282,032 MSD Steuben County, K-5 Building Corp., First Meeting, 5.000% 07/15/18 250,000 277,088 West Lafayette Industrial Building Corp., First Mortgage, Police Station Project, 5.000% 07/15/18 250,000 270,795 ----------- Indiana Total 829,915 IOWA - 2.6% Finance Authority: Health Care Facilities Revenue, Genesis Medical Center, 6.100% 07/01/15 285,000 334,516 Single Family Mortgage, Series A, 5.800% 07/01/16 80,000 84,713 ----------- Iowa Total 419,229 KENTUCKY - 0.5% Louisville & Jefferson County Visitors & Convention Commission, Series 1999 BBB, (a) 12/01/08 100,000 79,366 Kentucky Total 79,366 LOUISIANA - 1.8% Calcasieu Parish School District No. 31, Public School Improvement, Series 2000, 5.500% 05/01/16 250,000 285,813 ----------- Louisiana Total 285,813 See Accompanying Notes to Financial Statements. 89 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA NATIONAL MUNICIPAL BOND FUND PAR ($) VALUE ($) - ---------------------------------------------------------------------- MUNICIPAL BONDS - (CONTINUED) MAINE - 0.6% Regional Waste System Industry, Solid Waste Resource Recovery, Series Q (AMT), 5.500% 07/01/04 100,000 101,457 ----------- Maine Total 101,457 MASSACHUSETTS - 2.9% State College Building Authority, Series 2004 A, 5.000% 05/01/14 165,000 187,546 State Consolidation Loan, Series 2004 A, 5.250% 08/01/13 250,000 287,402 ----------- Massachusetts Total 474,948 MICHIGAN - 5.9% Lansing School District, School Building & Site, 5.000% 05/01/15 125,000 140,590 State Hospital Finance Authority, Ascension Health Credit, Series A: 5.375% 11/15/33 100,000 111,689 6.000% 11/15/19 100,000 120,140 Sturgis Public School District, School Building & Site, 5.500% 05/01/14 250,000 289,472 Warren Downtown Development, Series 2002, 5.000% 10/01/16 250,000 278,820 ----------- Michigan Total 940,711 MISSISSIPPI - 1.8% Development Bank, Convention Center Project, 6.500% 07/01/13 230,000 287,914 ----------- Mississippi Total 287,914 MONTANA - 1.4% Whitefish Tax Increment, Urban Renewal Revenue, 6.625% 07/15/20 200,000 218,388 ----------- Montana Total 218,388 NEVADA - 1.8% Colorado River Commission, Hoover Dam Project, Series 2002, 5.375% 10/01/14 250,000 289,268 ----------- Nevada Total 289,268 NEW JERSEY - 0.8% State Economic Development Authority, Public Schools Small PJ Loan Program, 5.000% 08/15/12 110,000 126,509 ----------- New Jersey Total 126,509 PAR ($) VALUE ($) - ---------------------------------------------------------------------- NEW YORK - 3.6% New York City, AMBAC TCRS: Series 2000, 5.750% 08/01/11 250,000 294,047 Series A, 6.000% 05/15/21 250,000 281,712 ----------- New York Total 575,759 NORTH DAKOTA - 1.8% Fargo School District Building Authority Development, Series 2000, 5.500% 05/01/13 250,000 284,680 ----------- North Dakota Total 284,680 OHIO - 2.6% Oak Hills Local School District, 7.200% 12/01/09 100,000 125,091 State Water Development Authority Revenue, Fresh Water, Series 2001 B, 5.500% 12/01/18 250,000 297,662 ----------- Ohio Total 422,753 OKLAHOMA - 1.4% Okmulgee County, 1st Mortgage, 6.000% 03/01/15 200,000 231,380 ----------- Oklahoma Total 231,380 OREGON - 11.1% Bend Municipal Airport Project, Series B (AMT), 5.375% 06/01/13 100,000 108,233 Benton County Hospital Facilities Authority Refunding, Samaritan Health Services Project: 4.200% 10/01/05 40,000 41,708 4.600% 10/01/09 40,000 43,147 Clackamas County, Hospital Facility Authority, Gross-Willamette Falls Hospital Project, 5.500% 04/01/22 250,000 269,427 Damascus Water District, Certificates of Participation, 5.250% 03/01/19 100,000 112,335 Deschutes County Hospital Facilities Authority, Cascade Health Services, Inc., Series 2002, 5.600% 01/01/27 100,000 105,238 Eugene Trojan Nuclear Project, 5.900% 09/01/09 25,000 25,301 Hillsboro Hospital Facility Authority Refunding, Tuality Healthcare, 5.250% 10/01/04 55,000 56,235 See Accompanying Notes to Financial Statements. 90 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA NATIONAL MUNICIPAL BOND FUND PAR ($) VALUE ($) - ---------------------------------------------------------------------- MUNICIPAL BONDS - (CONTINUED) OREGON - (CONTINUED) Klamath Community College District: 4.700% 04/01/10 55,000 59,790 4.800% 04/01/11 25,000 27,045 Lebanon Urban Renewal Agency, 5.625% 06/01/19 100,000 106,902 Port of St. Helens Pollution Control, Portland General Electric Co., Series B, 4.800% 06/01/10 105,000 105,580 Redmond Urban Renewal Agency, Downtown Area B, 5.650% 06/01/13 100,000 105,014 Salem Hospital Facilities Authority, Capital Manor, Inc., Series 1994, 7.500% 12/01/24 150,000 156,621 State Housing & Community Services Department, Single Family Mortgage Program, Series B, 6.000% 07/01/12 10,000 10,483 State Veterans Welfare, Series 75, 5.875% 10/01/18 15,000 15,635 Sunriver Library County Service District, 5.750% 06/01/04 20,000 20,228 Washington & Clackamas Counties School District No. 23J Tigard, Series 2000, (a) 06/15/21 300,000 132,051 Washington County Housing Authority: Affordable Housing Pool, Series A, 6.000% 07/01/20 100,000 100,080 Multi-Family Tualatin Meadows, 5.900% 11/01/18 West Linn Oregon Water System, 6.000% 10/01/20 165,000 179,136 ----------- Oregon Total 1,780,189 SOUTH CAROLINA - 1.4% Charleston County School District, Series 2001, 5.000% 02/01/18 200,000 217,574 ----------- South Carolina Total 217,574 SOUTH DAKOTA - 1.1% State Building Authority, Lease Capital Appreciation, Series 1996 A, (a) 12/01/13 250,000 173,490 ----------- South Dakota Total 173,490 PAR ($) VALUE ($) - ---------------------------------------------------------------------- TENNESSEE - 4.1% Lawrenceburg Public Building Authority, Electric System Public Works, Series C, 5.500% 07/01/16 295,000 336,595 Metropolitan Government Nashville, Series 2002 A, 5.125% 10/01/13 285,000 324,552 ----------- Tennessee Total 661,147 TEXAS - 4.5% Harris County Health Facilities, de Teco Project, Series 1999 B, 5.700% 02/15/15 150,000 172,437 Laredo Sports Venue Sales Tax, 5.750% 03/15/13 200,000 230,594 Magnolia Independent School District, 5.250% 08/15/17 280,000 313,062 ----------- Texas Total 716,093 WASHINGTON - 13.8% Grant County Public Hospital, District No. 3, Columbia Basin Hospital, 5.500% 12/01/18 170,000 178,969 Jefferson County, Public Utility District No. 1, Water & Sewer: 5.250% 05/01/16 50,000 53,473 5.250% 05/01/17 50,000 53,207 Pierce County Housing Authority, 5.400% 12/01/13 100,000 98,431 Port of Grays Harbor, 6.375% 12/01/14 150,000 164,758 Poulsbo Water & Sewer, 5.250% 06/01/06 135,000 145,072 Seattle Municipal Light & Power: 5.000% 07/01/13 235,000 250,750 6.000% 10/01/16 150,000 170,133 Shelton Water & Sewer, 5.250% 12/01/18 50,000 53,256 State Certificates of Participation, Department of General Administration, 5.400% 07/01/13 100,000 108,853 State Health Care Facilities Authority Revenue, Grays Harbor Community Hospital, Series 1996, 5.700% 07/01/16 200,000 211,568 State Public Power Supply System: Nuclear Project No. 1 Revenue, Series 1997 B, 5.125% 07/01/14 300,000 320,391 Nuclear Project No. 2 Refunding, Series A, 5.000% 07/01/11 50,000 55,709 See Accompanying Notes to Financial Statements. 91 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA NATIONAL MUNICIPAL BOND FUND PAR ($) VALUE ($) - ---------------------------------------------------------------------- MUNICIPAL BONDS - (CONTINUED) WASHINGTON - (CONTINUED) Nuclear Project No. 3 Revenue, Capital Appreciation, Series 1989 B, (a) 07/01/12 145,000 105,050 Tacoma Solid Waste Utilities: Pre-refunded, Series 1997 B, 6.000% 12/01/09 15,000 17,939 Unrefunded, Series 1997 B, 6.000% 12/01/09 85,000 100,847 Thurston County School District No. 401, Rochester, 4.800% 12/01/07 55,000 55,370 Toppenish, 4.600% 12/01/06 65,000 69,923 Yakima County School District No. 119 Selah, 5.000% 12/01/06 10,000 10,956 ----------- Washington Total 2,224,655 WISCONSIN - 3.4% Marshall School District, Series 2002 A, 5.000% 03/01/14 250,000 286,270 State, Series 2004 2, 5.000% 05/01/12 225,000 255,715 ----------- Wisconsin Total 541,985 WYOMING - 0.7% Municipal Power Agency, Power Supply Refunding, Series 1998, 5.250% 01/01/11 100,000 113,626 ----------- Wyoming Total 113,626 TOTAL MUNICIPAL BONDS (Cost of $13,879,130) 14,892,370 SHORT-TERM OBLIGATIONS - 4.0% SHARES - ---------------------------------------------------------------------- TAX-EXEMPT MONEY MARKET INVESTMENTS - 2.7% Dreyfus Tax-Exempt Cash Management 408,487 408,487 Federated Tax-Free Obligations Fund 30,484 30,484 ----------- Total Tax-Exempt Money Market Investments (Cost of $438,971) 438,971 PAR ($) VALUE ($) - ---------------------------------------------------------------------- VARIABLE RATE DEMAND NOTE (B) - 1.3% IN Health Facilities Financing Agency, Fayette Memorial Hospital Association, Series 2002 A, 1.030% 10/01/32 (Cost of $200,000) 200,000 200,000 ----------- SHORT-TERM OBLIGATIONS TOTAL (Cost of $638,971) 638,971 TOTAL INVESTMENTS - 96.7% (COST OF $14,518,101) (c) 15,531,341 OTHER ASSETS & LIABILITIES, NET - 3.3% 525,209 NET ASSETS - 100.0% 16,056,550 NOTES TO INVESTMENT PORTFOLIO: (a) Zero coupon bond. (b) Variable rate demand notes are considered short-term obligations. Interest rates change periodically on specified dates. These securities are payable on demand and are secured by either letters of credit or other credit support agreements from banks. The rate listed is as of February 29, 2004. (c) Cost for federal income tax purposes is $14,514,524. Columbia National Municipal Bond Fund holds investments that are insured by private insurers who guarantee the payment of principal and interest in the event of default. At February 29, 2004, investments in these securities represented 58.0% of holdings. ACRONYM NAME ------- ---- AMBAC American Municipal Bond Assurance Corp. AMT Alternative Minimum Tax TCRS Transferable Custodial Receipts See Accompanying Notes to Financial Statements. 92 INVESTMENT PORTFOLIO____________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA OREGON MUNICIPAL BOND FUND PAR ($) VALUE ($) - ---------------------------------------------------------------------- GENERAL OBLIGATION BONDS - 35.7% STATE OF OREGON GENERAL OBLIGATIONS - 4.4% Board of Higher Education: Series A: 5.000% 08/01/12 2,075,000 2,375,813 5.250% 08/01/14 1,480,000 1,687,940 5.250% 08/01/16 5,330,000 5,982,872 Baccalaureate, Series D, 4.875% 08/01/19 1,000,000 1,043,960 Deferred Interest, Series A: (a) 08/01/14 490,000 328,991 (a) 08/01/17 1,050,000 594,605 Elderly & Disabled Housing Refunding, Series B: 4.950% 08/01/20 985,000 1,025,612 6.250% 08/01/13 55,000 55,777 State of Oregon, Series A, 5.250% 10/15/15 1,735,000 1,978,455 Veteran's Welfare: 5.850% 10/01/15 540,000 564,883 8.000% 07/01/08 580,000 721,352 9.200% 10/01/08 385,000 502,929 Series 80 A, 5.700% 10/01/32 4,130,000 4,339,515 ----------- State of Oregon General Obligations Total 21,202,704 GENERAL OBLIGATIONS - 17.8% Aurora, 5.600% 06/01/24 1,205,000 1,269,889 Bend Municipal Airport Project, Series B (AMT), 5.375% 06/01/13 150,000 162,349 Canyonville South Umpqua Rural Fire District, 5.400% 07/01/31 610,000 647,838 Clackamas County: Lake Oswego Series: 5.375% 06/01/15 2,450,000 2,772,346 5.375% 06/01/16 1,295,000 1,465,383 5.375% 06/01/17 2,535,000 2,865,716 School District No. 62C: 3.250% 06/15/12 3,655,000 3,703,831 5.375% 06/15/17 1,250,000 1,460,138 School District No. 086, 6.000% 06/15/16 2,350,000 2,769,122 School District No. 108, 5.375% 06/15/15 1,055,000 1,194,471 Clackamas & Washington Counties, School District No. 003JT, (a) 06/15/17 6,000,000 3,404,640 Coos Bay, 4.900% 09/01/07 1,960,000 2,153,707 Crook County School District, 5.000% 02/01/14 2,860,000 3,199,282 PAR ($) VALUE ($) - ---------------------------------------------------------------------- Eugene Public Safety Facilities: 5.500% 06/01/10 850,000 921,859 5.625% 06/01/13 1,295,000 1,407,147 Jackson County: School District No. 4, Phoenix-Talent, 5.500% 06/15/16 1,000,000 1,140,240 School District No. 6, Central Point, 6.000% 06/15/09 1,090,000 1,285,579 School District No. 9, Eagle Point, 5.625% 06/15/15 1,920,000 2,202,029 Lane County, School District No. 4J Eugene, Refunding: 5.000% 07/01/12 1,000,000 1,141,880 5.250% 07/01/13 1,000,000 1,160,020 Metro Washington Park Zoo, Series A, 5.300% 01/15/11 1,000,000 1,093,370 Metro Oregon, 5.250% 09/01/14 3,130,000 3,587,481 Multnomah-Clackamas Counties, School District No. 10JT, Series A, 5.250% 06/15/12 1,000,000 1,159,720 Multnomah County, Series A, 5.500% 04/01/19 2,395,000 2,703,045 Portland Community College District, Series A: 5.375% 06/01/14 1,925,000 2,212,306 5.375% 06/01/16 2,705,000 3,060,897 5.375% 06/01/17 2,540,000 2,871,368 Portland Limited Tax: Series A: 3.400% 06/01/13 3,140,000 3,175,545 4.900% 04/01/12 1,430,000 1,531,072 5.750% 06/01/14 585,000 591,885 Series B: (a) 06/01/12 1,750,000 1,310,347 (a) 06/01/13 1,500,000 1,065,060 (a) 06/01/16 3,500,000 2,106,545 (a) 06/01/18 4,000,000 2,144,320 (a) 06/01/19 4,000,000 2,016,160 (a) 06/01/20 4,000,000 1,897,240 Washington & Clackamas Counties: Deferred Interest, Series A, (a) 06/01/10 1,520,000 1,248,923 School District No. 23J, Tigard, (a) 06/15/18 2,700,000 1,436,886 Washington County: 5.500% 06/01/16 2,785,000 3,173,730 Criminal Justice Facilities, Refunding, 5.000% 12/01/10 1,400,000 1,548,512 School District No. 48J, Beaverton: 5.125% 01/01/14 2,000,000 2,247,320 5.125% 01/01/17 1,820,000 2,014,340 5.125% 01/01/18 2,260,000 2,487,650 See Accompanying Notes to Financial Statements. 93 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA OREGON MUNICIPAL BOND FUND PAR ($) VALUE ($) - ---------------------------------------------------------------------- GENERAL OBLIGATION BONDS - (CONTINUED) GENERAL OBLIGATIONS - (CONTINUED) Washington, Multnomah & Yamhill Counties, School District No. 1J: 5.000% 06/01/13 1,500,000 1,688,970 5.000% 11/01/13 1,100,000 1,257,421 5.250% 06/01/14 500,000 565,975 ----------- General Obligations Total 86,523,554 INSURED GENERAL OBLIGATIONS - 13.5% Benton & Linn Counties, School District No. 509J, Corvallis, 5.000% 06/01/17 2,665,000 2,945,438 Clackamas Community College, 5.250% 06/15/15 1,500,000 1,686,240 Clackamas County, School District No. 12, North Clackamas: 5.250% 06/01/11 1,000,000 1,134,060 5.250% 06/01/15 2,750,000 3,061,547 Columbia County, School District No. 502, Deferred Interest: (a) 06/01/13 1,685,000 1,205,146 (a) 06/01/14 1,025,000 694,622 Coos County, School District No. 13, North Bend, 5.500% 06/15/15 1,765,000 2,036,704 Deschutes County, School District No. 1, Series A, 5.500% 06/15/18 1,000,000 1,138,630 Jefferson County, School District No. 509J, Madras School District, 5.250% 06/15/18 1,075,000 1,200,270 Josephine County, School District No. 7, Grants Pass, 4.000% 06/15/11 2,000,000 2,156,580 5.700% 06/01/13 2,000,000 2,258,320 Lane County, School District No. 19, Springfield Refunding: 6.000% 10/15/12 1,740,000 2,119,129 6.000% 10/15/14 1,310,000 1,619,658 Lincoln County School District, 5.600% 06/15/10 3,480,000 4,024,237 Linn Benton Community College: (a) 06/15/13 1,000,000 710,830 (a) 06/15/14 1,000,000 673,810 Linn County, Community School District No. 9, Lebanon: (a) 06/15/15 710,000 810,295 (a) 06/15/21 2,000,000 2,273,280 PAR ($) VALUE ($) ---------------------------------------------------------------------- Multnomah-Clackamas Counties, Centennial School District No. 28-302: 5.375% 06/15/16 2,055,000 2,326,671 5.375% 06/15/17 2,280,000 2,578,110 5.375% 06/15/18 2,490,000 2,801,972 Multnomah County: School District No. 7, Reynolds: 5.625% 06/15/14 2,670,000 3,126,703 5.625% 06/15/17 1,000,000 1,146,890 School District No. 40, 5.000% 12/01/14 1,790,000 2,008,452 Series A MBIA-IBC, 5.500% 04/01/18 2,010,000 2,288,043 Northern Oregon Corrections: 5.250% 09/15/12 1,000,000 1,110,650 5.300% 09/15/13 1,000,000 1,112,350 Salem-Keizer, School District No. 24J: 5.000% 06/01/15 1,000,000 1,135,530 5.000% 06/15/18 2,000,000 2,206,460 Washington & Clackamas Counties, School District No. 23J, Tigard, 5.375% 06/15/17 1,500,000 1,699,425 Washington County: School District No. 15, Forest Grove: 5.375% 06/15/13 2,070,000 2,394,597 5.375% 06/15/15 2,515,000 2,847,483 School District No. 48J, Beaverton: 5.100% 06/01/12 500,000 562,830 5.250% 08/01/10 1,150,000 1,290,634 School District No. 088J, Sherwood, Unrefunded, 6.100% 06/01/12 185,000 196,629 Yamhill County: School District No. 029J, 5.250% 06/15/16 2,535,000 2,858,745 School District No. 40, 6.000% 06/01/09 500,000 590,260 ----------- Insured General Obligations Total 66,031,230 ----------- GENERAL OBLIGATION BONDS TOTAL (Cost of $162,645,984) 173,757,488 REVENUE BONDS - 54.8% OREGON REVENUE - 34.0% Benton County Hospital Facilities Authority, Samaritan Health Services Project, Refunding: 4.400% 10/01/07 220,000 236,240 4.800% 10/01/11 245,000 260,866 5.200% 10/01/17 2,255,000 2,360,714 Clackamas County Hospital Facility Authority: Kaiser Permanente, Series A, 5.375% 04/01/14 7,135,000 8,180,563 See Accompanying Notes to Financial Statements. 94 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA OREGON MUNICIPAL BOND FUND PAR ($) VALUE ($) - ---------------------------------------------------------------------- REVENUE BONDS - (CONTINUED) OREGON REVENUE - (CONTINUED) Legacy Health System: 4.600% 05/01/10 885,000 974,606 5.000% 02/15/16 1,010,000 1,075,983 5.500% 02/15/13 5,450,000 6,067,757 5.500% 02/15/14 2,385,000 2,641,483 5.750% 05/01/12 2,000,000 2,329,800 Legacy Health System, Refunding: 5.250% 05/01/21 4,890,000 5,234,989 5.750% 05/01/16 1,500,000 1,700,685 Odd Fellows Home, Series A, Refunding, 5.875% 09/15/21 705,000 645,780 Robison Jewish Home Project, 6.250% 10/01/21 1,650,000 1,755,204 Willamette Falls Hospital Project, 5.750% 04/01/14 705,000 748,921 Willamette View, Inc. Project, Series A, 6.850% 11/01/15 1,580,000 1,722,706 Clackamas County Housing Authority, Multi-Family Housing, Easton Ridge, Series A, 5.800% 12/01/16 2,255,000 2,327,431 Deschutes County Hospital Facilities Authority, Cascade Health Services, Inc.: 5.500% 01/01/22 2,000,000 2,122,680 5.600% 01/01/27 5,550,000 5,840,709 5.600% 01/01/32 2,000,000 2,099,420 Deschutes Valley Water District, 5.875% 09/01/05 1,585,000 1,683,936 Eugene Airport, Refunding (AMT): 5.650% 05/01/06 325,000 348,878 5.650% 05/01/07 555,000 606,892 5.700% 05/01/08 515,000 570,774 Hillsboro Hospital Facility Authority, Tuality Healthcare, 5.750% 10/01/12 3,810,000 3,926,700 Multnomah County Educational Facilities, University of Portland Project: 5.700% 04/01/15 1,000,000 1,083,790 6.000% 04/01/20 1,000,000 1,099,110 6.000% 04/01/25 500,000 528,650 Myrtle Point Water, 6.000% 12/01/20 510,000 554,635 North Clackamas Parks & Recreation District Facilities, 5.700% 04/01/13 2,920,000 3,409,918 Northern Wasco County, People's Utility District Electric: (a) 02/01/06 610,000 560,114 (a) 02/01/07 585,000 501,093 (a) 02/01/08 610,000 486,548 (a) 02/01/11 500,000 322,605 PAR ($) VALUE ($) - ---------------------------------------------------------------------- Oregon State Department of Transportation, Highway User Tax, Series A, 5.500% 11/15/16 2,500,000 2,884,300 Oregon State Economic Development, Dove Lewis 24 Hour Emergency Animal Hospital, 7.000% 12/01/19 (b) 1,380,000 1,433,144 Oregon State Health, Housing, Educational & Cultural Facilities Authority: Authority/Aquarium: 4.750% 10/01/08 (c) 1,550,000 325,500 4.900% 10/01/09 (c) 670,000 140,700 Goodwill Industries Lane County, Series A, 6.650% 11/15/22 (b) 3,855,000 3,788,154 Linfield College Project, Series A: 4.650% 10/01/09 555,000 591,946 5.500% 10/01/18 1,000,000 1,043,270 Reed College Project, Series A, 5.300% 07/01/11 500,000 547,990 St. Anthony's Village Housing, Series A (AMT), 7.250% 06/01/28 1,380,000 1,382,498 Oregon State Housing & Community Services: Department of Housing, Finance Assisted Insured Multi-Unit B, 6.800% 07/01/13 7,820,000 7,835,093 Department Mortgage Multi-Family Housing, Series B (AMT), 6.000% 07/01/31 6,935,000 7,272,735 Department Mortgage Single Family Program: Series A, 4.850% 07/01/10 215,000 233,335 Series A (AMT), 6.200% 07/01/27 1,815,000 1,918,745 Series B (AMT), 5.250% 07/01/30 380,000 390,218 Series D, 6.700% 07/01/13 1,000,000 1,001,880 Series E: 5.375% 07/01/21 3,770,000 3,988,698 5.700% 07/01/12 745,000 785,208 5.800% 07/01/14 845,000 890,816 6.000% 07/01/20 2,090,000 2,265,017 Series F (AMT), 5.650% 07/01/28 1,155,000 1,198,948 Series F MBIA-IBC (AMT), 5.650% 07/01/28 875,000 910,385 Series G (AMT), 5.700% 07/01/32 740,000 768,527 Series H (AMT), 5.500% 07/01/17 1,345,000 1,407,906 Series J, 5.150% 07/01/24 2,790,000 2,901,656 See Accompanying Notes to Financial Statements. 95 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA OREGON MUNICIPAL BOND FUND PAR ($) VALUE ($) - ---------------------------------------------------------------------- REVENUE BONDS - (CONTINUED) OREGON REVENUE - (CONTINUED) Series L (AMT), 5.900% 07/01/31 3,605,000 3,781,933 Series M (AMT), 5.800% 07/01/12 300,000 325,059 Series Q: 4.700% 07/01/15 770,000 817,971 4.900% 07/01/17 755,000 798,624 Mountain Shadows Apts. B-1, 6.250% 12/01/05 (d) 4,000,000 3,058,080 Oregon State Housing Finance, 5.800% 07/01/09 215,000 216,935 Port Morrow, 6.700% 06/01/20 2,000,000 2,055,420 Port of St. Helens: 5.600% 08/01/14 315,000 328,677 5.750% 08/01/19 425,000 442,752 Port of St. Helens Pollution Control, Portland General Electric Co: Series A, 4.800% 04/01/10 5,195,000 5,223,676 Series B, 4.800% 06/01/10 3,500,000 3,519,320 Portland Housing Authority: Multi-Family Housing Senior Lien Civic Apartments, Series A, 5.600% 01/01/18 1,240,000 1,250,627 Pool Housing, Series A, Refunding, 4.500% 01/01/09 660,000 712,654 Portland Sewer System Revenue, Series A, Refunding, 5.000% 06/01/12 4,835,000 5,293,310 Powell Valley Water District, 6.000% 02/01/15 620,000 676,476 Prineville Sewer First Lien, 6.500% 07/01/04 140,000 142,243 Reedsport Water, 7.000% 10/01/14 520,000 531,024 Salem Hospital Facility Authority: 5.000% 08/15/18 2,000,000 2,069,560 5.250% 08/15/14 4,860,000 5,159,182 Sheridan Water Revenue: 6.200% 05/01/15 625,000 692,131 6.450% 05/01/20 520,000 574,522 Sheridan Water Revenue, Refunding, 5.350% 04/01/18 300,000 317,493 South Fork Water Board First Lien, 5.450% 02/01/14 1,300,000 1,324,297 State of Oregon French American International School Project, Series A, 6.250% 04/01/27 5,370,000 5,681,782 Umatilla County, Hospital Facility Authority, Catholic Health Initiatives, Series A: 5.750% 12/01/20 530,000 576,423 6.000% 12/01/30 4,825,000 5,299,298 PAR ($) VALUE ($) - ---------------------------------------------------------------------- Washington County Housing Authority: Affordable Housing, Series A, 6.000% 07/01/20 2,000,000 2,001,600 Affordable Housing Pool, Series A: 5.750% 07/01/23 1,000,000 1,017,100 6.000% 07/01/23 1,000,000 996,500 Multi-Family Bethany Meadows Project (AMT), 6.250% 08/01/10 695,000 700,199 ----------- Oregon Revenue Total 165,501,717 INSURED REVENUE - 20.8% Clackamas County, Hospital Facilities Authority, Legacy Health System, MBIA-IBC, 5.500% 02/15/13 495,000 565,137 Deschutes County, Certificates of Participation, Series A, 5.050% 06/01/17 420,000 433,465 Emerald Peoples Utilities District: 7.350% 11/01/10 2,160,000 2,767,111 7.350% 11/01/11 2,000,000 2,604,700 7.350% 11/01/12 2,490,000 3,278,508 7.350% 11/01/13 2,675,000 3,562,699 Series A, 5.250% 11/01/20 605,000 673,377 Eugene Electric Utilities System, Series B, Refunding, 5.250% 08/01/13 1,040,000 1,189,812 Guam Housing Corp., Single Family Mortgage-Backed Securities, Series A (AMT), 5.750% 09/01/31 175,000 198,784 Guam International Apartment Authority, Series C (AMT), 5.375% 10/01/17 5,000,000 5,563,800 Medford Hospital Facilities Authority, Asante Health System, Series A: 5.250% 08/15/10 1,500,000 1,684,425 5.250% 08/15/11 800,000 898,360 Multnomah County Educational Facilities Authority, University of Portland Project, Refunding: 5.000% 04/01/11 1,150,000 1,274,994 5.750% 04/01/10 2,000,000 2,264,120 Ontario Catholic Health Holy Rosary Medical Center, 5.500% 11/15/12 1,500,000 1,628,760 Oregon State Department of Administrative Services: Certificates of Participation, Series A, 5.300% 05/01/08 750,000 834,502 See Accompanying Notes to Financial Statements. 96 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA OREGON MUNICIPAL BOND FUND PAR ($) VALUE ($) - ---------------------------------------------------------------------- REVENUE BONDS - (CONTINUED) INSURED REVENUE - (CONTINUED) Lottery Education Project: Series A: 5.000% 04/01/14 5,535,000 6,290,008 5.250% 04/01/11 4,000,000 4,558,240 5.250% 04/01/13 1,600,000 1,837,392 Series B, 5.250% 04/01/15 1,315,000 1,472,024 Department of Administrative Services, Certificates of Participation, Refunding: Series A: 4.500% 05/01/12 1,020,000 1,098,673 5.000% 05/01/13 4,240,000 4,753,040 5.000% 05/01/14 1,000,000 1,116,560 Series B, 5.250% 05/01/10 840,000 967,134 Series C: 5.250% 11/01/15 1,000,000 1,136,680 5.250% 11/01/17 5,000,000 5,625,100 Series E, 5.000% 11/01/13 1,470,000 1,661,556 Oregon State Economic Community Development Department, Series A, 5.375% 01/01/11 1,105,000 1,255,700 Oregon State Health, Housing, Educational & Cultural Facilities Authority, Reed College Project, Series A, 5.100% 07/01/10 900,000 1,018,413 Oregon State Health Sciences University, Series A: (a) 07/01/09 1,530,000 1,325,133 (a) 07/01/12 1,315,000 989,288 (a) 07/01/14 2,550,000 1,724,896 (a) 07/01/15 4,325,000 2,765,837 (a) 07/01/21 12,515,000 5,648,270 Oregon State Housing & Community Services Department, Single Family Mortgage Project, Series J (AMT), 5.750% 07/01/29 5,940,000 6,188,589 Port of Portland International Airport: Series 12B, Refunding, 5.250% 07/01/12 1,000,000 1,117,970 Series 12C (AMT): 5.000% 07/01/13 1,000,000 1,093,190 5.000% 07/01/14 1,750,000 1,893,885 Series D (AMT), 5.250% 07/01/12 1,750,000 1,954,890 Portland Arena Gas Tax: (a) 06/01/16 1,100,000 566,456 (a) 07/01/17 2,320,000 1,122,486 Portland Gas Tax, Series A, 5.800% 06/01/16 1,640,000 1,788,059 PAR ($) VALUE ($) - ---------------------------------------------------------------------- Portland Housing Authority, Multi-Family Housing, Lovejoy Station Apartments Project (AMT), 5.900% 07/01/23 1,000,000 1,065,100 Salem Water & Sewer, 5.300% 06/01/15 1,500,000 1,696,845 Tri-County Metropolitan Transportation District: Series 1, 5.400% 06/01/19 4,200,000 4,479,006 Series A, 5.000% 09/01/15 1,000,000 1,113,430 Tualatin Hills Park & Recreation District, 5.750% 03/01/14 990,000 1,191,604 Washington County Unified Sewer Agency, 5.500% 10/01/16 1,250,000 1,375,675 ----------- Insured Revenue Total 101,313,683 ----------- REVENUE BONDS TOTAL (Cost of $251,420,078) 266,815,400 PRE-REFUNDED BONDS - 0.8% Oregon State City Sewer, 6.500% 10/01/07 500,000 533,870 Virgin Islands Public Finance Authority, Unrefunded Balance, Series A, 7.300% 10/01/18 1,185,000 1,596,823 Salem-Keizer, School District No. 24J, 5.000% 06/01/16 1,380,000 1,567,031 ----------- PRE-REFUNDED BONDS TOTAL (Cost of $1,881,571) 3,697,724 OTHER BONDS - 6.2% Hood River Urban Renewal Agency, 6.250% 12/15/11 1,250,000 1,375,850 Lebanon Special Obligation, Lease Water, Refunding, 5.400% 10/01/13 755,000 765,140 Lebanon Urban Renewal Agency: 5.625% 06/01/19 1,000,000 1,069,020 5.750% 06/01/15 1,120,000 1,195,253 6.000% 06/01/20 1,580,000 1,691,469 Medford Urban Renewal, 5.875% 09/01/10 500,000 532,935 Multnomah County, Certificates of Participation, 4.550% 08/01/10 1,000,000 1,087,860 Portland Airport Way Urban Renewal & Redevelopment, Convention Center, Series A: 5.750% 06/15/17 1,500,000 1,751,970 5.750% 06/15/18 2,050,000 2,391,263 See Accompanying Notes to Financial Statements. 97 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA OREGON MUNICIPAL BOND FUND PAR ($) VALUE ($) - ---------------------------------------------------------------------- OTHER BONDS - (CONTINUED) Portland River District Urban Renewal & Redevelopment, Series A: 5.000% 06/15/17 1,500,000 1,655,910 5.000% 06/15/18 3,070,000 3,366,255 5.000% 06/15/20 2,000,000 2,153,940 Portland Urban Renewal & Redevelopment, South Park Blocks, Series A: 5.750% 06/15/17 2,065,000 2,411,879 5.750% 06/15/19 2,580,000 2,999,224 Redmond Urban Renewal Agency: Downtown Area B: 5.650% 06/01/13 720,000 756,101 5.850% 06/01/19 785,000 820,419 South Airport Industrial Area A, 5.700% 06/01/19 650,000 666,068 Seaside Urban Renewal Agency, Greater Seaside Urban Renewal, 5.250% 06/01/15 1,000,000 1,062,610 Veneta Urban Renewal Agency: 5.375% 02/15/16 700,000 760,550 5.625% 06/15/21 1,100,000 1,177,176 Wilsonville Limited Tax Improvement, 5.000% 12/01/10 345,000 347,412 ----------- OTHER BONDS TOTAL (Cost of $27,852,638) 30,038,304 U.S. TERRITORIES BONDS - 0.2% Puerto Rico Housing Finance Corp., Multi-Family Mortgage Portfolio A-1, 7.500% 04/01/22 820,000 846,650 ----------- U.S. TERRITORIES BONDS TOTAL (Cost of $817,939) 846,650 TAX EXEMPT MONEY MARKET INVESTMENTS - 1.9% SHARES - ---------------------------------------------------------------------- Dreyfus Tax Exempt Cash Management, 0.820% 01/01/31 7,000,845 7,000,845 Federated Tax-Free Obligations Fund, 0.790% 01/01/31 2,294,310 2,294,310 ----------- TAX EXEMPT MONEY MARKET INVESTMENTS TOTAL (Cost of $9,295,155) 9,295,155 TOTAL INVESTMENTS - 99.6% (COST OF $453,913,365) (e) 484,450,721 OTHER ASSETS & LIABILITIES, NET - 0.4% 1,914,519 NET ASSETS - 100.0% 486,365,240 NOTES TO INVESTMENT PORTFOLIO: (a) Zero coupon bond. (b) Denotes a restricted security, which is subject to restrictions on resale under federal securities laws. At February 29, 2004, these securities amounted to $5,221,298, which represents 1.1% of net assets. Additional information on these securities is as follows: ACQUISITION ACQUISITION SECURITY DATE COST -------- ---------- ----------- Oregon State Economic Development, Dove Lewis 24 Hour Emergency Animal Hospital, 7.000% 12/01/19 12/11/03 $ 1,380,000 Oregon State Health, Housing, Educational & Cultural Facilities Authority, Goodwill Industries Lane County, Series A, 6.650% 11/15/22 06/18/02 3,855,000 ----------- $ 5,235,000 (c) This issuer is in default of certain debt covenants. Income is not being accrued. (d) This issuer is in default of certain debt covenants. Income is being accrued. (e) Cost for federal income tax purposes is $453,767,647. Columbia Oregon Municipal Bond Fund holds investments that are insured by private insurers who guarantee the payment of principal and interest in the event of default. At February 29, 2004, investments in these securities represented 38.5% of holdings. ACRONYM NAME ------- ---- AMT Alternative Minimum Tax IBC Insured Bond Certificates MBIA Municipal Bond Insurance Association See Accompanying Notes to Financial Statements. 98 INVESTMENT PORTFOLIO____________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA HIGH YIELD FUND PAR ($) VALUE ($) - ---------------------------------------------------------------------- CORPORATE NOTES & BONDS - 90.2% AEROSPACE & DEFENSE - 3.5% K&F Industries, 9.625% 12/15/10 14,520,000 16,207,950 L-3 Communications Corp., 7.625% 06/15/12 30,275,000 33,605,250 TransDigm, Inc., 8.375% 07/15/11 15,275,000 16,115,125 ----------- Aerospace & Defense Total 65,928,325 AMUSEMENT & RECREATION - 2.8% Cinemark USA, Inc., 9.000% 02/01/13 21,740,000 24,457,500 Royal Caribbean Cruises Ltd., 6.875% 12/01/13 6,150,000 6,365,250 Six Flags, Inc.: 9.500% 02/01/09 1,625,000 1,702,188 9.625% 06/01/14 (a) 6,375,000 6,709,688 Speedway Motorsports, Inc., 6.750% 06/01/13 12,910,000 13,458,675 ----------- Amusement & Recreation Total 52,693,301 AUTOMOTIVE & AUTO PARTS - 2.5% American Axle & Manufacturing, Inc., 9.750% 03/01/09 18,175,000 19,083,750 Lear Corp., Series B: 7.960% 05/15/05 5,350,000 5,697,750 8.110% 05/15/09 18,400,000 21,574,000 ----------- Automotive & Auto Parts Total 46,355,500 BROADCASTING - 1.9% LIN Television Corp., 6.500% 05/15/13 14,150,000 14,433,000 Sinclair Broadcasting Group, Inc.: 8.000% 03/15/12 12,710,000 13,726,800 8.750% 12/15/11 6,710,000 7,347,450 ----------- Broadcasting Total 35,507,250 CABLE TV - 5.5% British Sky Broadcasting: 6.875% 02/23/09 5,000,000 5,662,700 7.300% 10/15/06 7,425,000 8,252,442 DirecTV Holdings LLC, 8.375% 03/15/13 23,655,000 26,907,562 EchoStar DBS Corp., 5.750% 10/01/08 (a) 32,500,000 33,150,000 Rogers Cable, Inc.: 6.250% 06/15/13 10,475,000 10,912,017 7.875% 05/01/12 15,900,000 18,169,725 ----------- Cable TV Total 103,054,446 CAPITAL GOODS - 1.7% Kennametal, Inc., 7.200% 06/15/12 15,070,000 16,612,716 PAR ($) VALUE ($) - ---------------------------------------------------------------------- Wabtec, 6.875% 07/31/13 14,875,000 15,693,125 ----------- Capital Goods Total 32,305,841 CASINOS & GAMING - 7.4% Harrah's Operating Co., Inc., 7.875% 12/15/05 25,400,000 27,559,000 International Game Technology: 7.875% 05/15/04 8.375% 05/15/09 3,575,000 4,263,188 Kerzner International, 8.875% 08/15/11 1,925,000 2,122,313 MGM Mirage, Inc.: 6.000% 10/01/09 13,375,000 13,910,000 9.750% 06/01/07 20,050,000 23,057,500 Park Place Entertainment Corp.: 7.875% 03/15/10 150,000 165,750 8.875% 09/15/08 500,000 566,250 9.375% 02/15/07 30,150,000 33,768,000 Station Casinos, Inc.: 6.500% 02/01/14 (a) 20,580,000 20,837,250 6.875% 03/01/16 (a) 13,415,000 13,549,150 ----------- Casino & Gaming Total 139,798,401 CHEMICALS - 4.8% Acetex Corp., 10.875% 08/01/09 8,965,000 9,861,500 Airgas, Inc., 9.125% 10/01/11 16,358,000 18,402,750 Equistar Chemicals LP: 10.125% 09/01/08 7,370,000 7,996,450 10.625% 05/01/11 4,805,000 5,237,450 Ethyl Corp., 8.875% 05/01/10 16,400,000 17,712,000 MacDermid, Inc., 9.125% 07/15/11 9,520,000 10,686,200 Nalco Co., 7.750% 11/15/11 (a) 10,170,000 10,627,650 Suburban Propane Partners, 6.875% 12/15/13 (a) 9,675,000 9,928,969 ----------- Chemicals Total 90,452,969 CONSUMER PRODUCTS - 2.2% Hasbro, Inc.: 6.150% 07/15/08 17,420,000 18,552,300 8.500% 03/15/06 Scotts Co., 6.625% 11/15/13 (a) 21,530,000 22,283,550 ----------- Consumer Products Total 40,835,850 DIVERSIFIED MEDIA - 1.8% Lamar Media Corp.: 7.250% 01/01/13 30,708,000 33,164,640 ----------- Diversified Media Total 33,164,640 See Accompanying Notes to Financial Statements. 99 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA HIGH YIELD FUND PAR ($) VALUE ($) - ---------------------------------------------------------------------- CORPORATE NOTES & BONDS - (CONTINUED) ENERGY - 10.3% Chesapeake Energy Corp.: 7.500% 09/15/13 15,270,000 16,491,600 8.125% 04/01/11 3,050,000 3,362,625 8.375% 11/01/08 6,230,000 6,775,125 9.000% 08/15/12 8,750,000 10,095,312 Series 1999 B, 8.500% 03/15/12 Grant Prideco, Inc.: 9.000% 12/15/09 14,995,000 16,794,400 9.625% 12/01/07 12,520,000 14,147,600 Key Energy Services, Inc.: 6.375% 05/01/13 11,590,000 12,053,600 8.375% 03/01/08 2,560,000 2,764,800 Offshore Logistics, Inc., 6.125% 06/15/13 20,800,000 20,384,000 Pogo Producing Co., 8.250% 04/15/11 3,080,000 3,465,000 Pride International, Inc.: 9.375% 05/01/07 8,675,000 8,891,875 10.000% 06/01/09 6,950,000 7,398,275 Universal Compression, Inc., 7.250% 05/15/10 9,975,000 10,573,500 Vintage Petroleum, Inc.: 7.875% 05/15/11 2,525,000 2,676,500 8.250% 05/01/12 6,025,000 6,597,375 9.750% 06/30/09 Westport Resources Corp.: 8.250% 11/01/11 22,355,000 24,702,275 8.250% 11/01/11 (a) 1,175,000 1,298,375 XTO Energy, Inc.: 6.250% 04/15/13 1,600,000 1,734,000 7.500% 04/15/12 19,765,000 23,075,637 ----------- Energy Total 193,281,874 ENVIRONMENTAL - 2.3% Allied Waste North America, Inc., Series B: 9.250% 09/01/12 2,300,000 2,593,250 10.000% 08/01/09 29,645,000 31,794,263 Synagro Technologies, Inc., 9.500% 04/01/09 8,375,000 9,086,875 ----------- Environmental Total 43,474,388 FOOD, BEVERAGES & TOBACCO - 3.2% Constellation Brands, Inc.: 8.000% 02/15/08 8.125% 01/15/12 10,940,000 11,869,900 8.500% 03/01/09 10,775,000 11,232,937 8.625% 08/01/06 5,100,000 5,597,250 Cott Beverages, Inc., 8.000% 12/15/11 29,200,000 31,828,000 ----------- Food, Beverages & Tobacco Total 60,528,087 PAR ($) VALUE ($) - ---------------------------------------------------------------------- FOOD & DRUG RETAIL - 0.6% Couche-Tard, 7.500% 12/15/13 (a) 11,075,000 11,850,250 ----------- Food & Drug Retail Total 11,850,250 HEALTH CARE - 9.4% AdvancePCS, 8.500% 04/01/08 8,775,000 9,608,625 AmerisourceBergen Corp.: 7.250% 11/15/12 6,630,000 7,118,962 8.125% 09/01/08 17,375,000 19,329,687 Apogent Technologies, Inc., 6.500% 05/15/13 22,990,000 24,082,025 HCA, Inc.: 6.910% 06/15/05 7,025,000 7,384,540 7.000% 07/01/07 1,000,000 1,098,820 8.750% 09/01/10 7,000,000 8,445,500 Omnicare, Inc.: 6.125% 06/01/13 15,575,000 15,964,375 Series B, 8.125% 03/15/11 14,740,000 16,250,850 Province Healthcare Co., 7.500% 06/01/13 12,800,000 13,152,000 Select Medical Corp.: 7.500% 08/01/13 11,050,000 11,961,625 9.500% 06/15/09 12,625,000 13,919,063 Triad Hospitals, Inc.: 7.000% 11/15/13 (a) 750,000 776,250 Series B, 8.750% 05/01/09 24,500,000 26,827,500 ----------- Health Care Total 175,919,822 HOMEBUILDERS - 2.8% KB Home: 7.750% 02/01/10 5,050,000 5,403,500 8.625% 12/15/08 6,325,000 7,099,812 9.500% 02/15/11 12,250,000 13,781,250 Toll Brothers, Inc., 8.250% 02/01/11 3,200,000 3,536,000 Toll Corp.: 7.750% 09/15/07 8.000% 05/01/09 5,765,000 6,010,013 8.125% 02/01/09 3,750,000 3,881,250 8.250% 12/01/11 11,020,000 12,232,200 ----------- Homebuilders Total 51,944,025 HOTELS - 2.3% Extended Stay America, Inc.: 9.150% 03/15/08 10,890,000 11,271,150 9.875% 06/15/11 12,550,000 14,024,625 ITT Corp., 6.750% 11/15/05 6,055,000 6,342,613 Starwood Hotels & Resorts Worldwide, Inc.: 7.375% 05/01/07 5,300,000 5,710,750 7.875% 05/01/12 5,000,000 5,562,500 ----------- Hotels Total 42,911,638 See Accompanying Notes to Financial Statements. 100 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA HIGH YIELD FUND PAR ($) VALUE ($) - ---------------------------------------------------------------------- CORPORATE NOTES & BONDS - (CONTINUED) METALS & MINING - 2.3% Arch Western Finance LLC, 6.750% 07/01/13 (a) 21,490,000 22,564,500 Peabody Energy Corp., 6.875% 03/15/13 17,655,000 18,802,575 Russel Metals, Inc., 6.375% 03/01/14 (a) 1,850,000 1,856,734 ----------- Metals & Mining Total 43,223,809 NON-FOOD & DRUG RETAIL - 1.0% Autonation, Inc., 9.000% 08/01/08 12,525,000 14,435,062 Group 1 Automotive, Inc., 8.250% 08/15/13 4,635,000 5,075,325 ----------- Non-Food & Drug Retail Total 19,510,387 PACKAGING - 4.5% Ball Corp.: 6.875% 12/15/12 32,897,000 35,035,305 7.750% 08/01/06 2,850,000 3,078,000 Owens-Brockway Glass Container: 8.750% 11/15/12 1,750,000 1,920,625 8.875% 02/15/09 1,000,000 1,090,000 8.875% 11/15/12 Owens-Illinois, Inc.: 7.150% 05/15/05 8,225,000 8,451,188 7.350% 05/15/08 5,400,000 5,386,500 8.100% 05/15/07 6,400,000 6,624,000 Silgan Holdings, Inc., 6.750% 11/15/13 (a) 22,380,000 22,827,600 ----------- Packaging Total 84,413,218 PAPER PRODUCTS - 1.8% Cascades, Inc., 7.250% 02/15/13 7,605,000 7,947,225 Smurfit-Stone Container Corp.: 8.250% 10/01/12 4,580,000 4,946,400 8.375% 07/01/12 5,185,000 5,586,838 9.750% 02/01/11 13,875,000 15,470,625 ----------- Paper Products Total 33,951,088 PRINTING & PUBLISHING - 4.3% Dex Media East LLC, 12.125% 11/15/12 20,390,000 24,060,200 Houghton Mifflin Co., 9.875% 02/01/13 17,790,000 19,391,100 R.H. Donnelly Finance Corp.: 8.875% 12/15/10 (a) 1,320,000 1,485,000 10.875% 12/15/12 8,150,000 9,657,750 10.875% 12/15/12 (a) 21,445,000 25,412,325 ----------- Printing & Publishing Total 80,006,375 PAR ($) VALUE ($) - ---------------------------------------------------------------------- REAL ESTATE INVESTMENT TRUST (REIT) - 1.7% Health Care REIT, Inc.: 7.500% 08/15/07 13,000,000 14,577,290 8.000% 09/12/12 125,000 149,001 iStar Financial, Inc.: 6.000% 12/15/10 2,400,000 2,484,000 7.000% 03/15/08 11,250,000 12,093,750 8.750% 08/15/08 2,890,000 3,272,925 ----------- Real Estate Investment Trust (REIT) Total 32,576,966 RESTAURANTS - 1.9% Yum! Brands, Inc.: 7.450% 05/15/05 1,810,000 1,918,600 7.650% 05/15/08 4,050,000 4,576,500 7.700% 07/01/12 5,315,000 6,165,400 8.500% 04/15/06 3,965,000 4,401,150 8.875% 04/15/11 15,585,000 19,130,587 ----------- Restaurants Total 36,192,237 SERVICES - 4.9% Corrections Corp. of America: 7.500% 05/01/11 12,800,000 13,440,000 7.500% 05/01/11 (a) 16,600,000 17,430,000 9.875% 05/01/09 125,000 139,375 Iron Mountain, Inc.: 7.750% 01/15/15 6,875,000 7,235,937 8.250% 07/01/11 1,120,000 1,164,800 8.625% 04/01/13 24,550,000 26,759,500 United Rentals, Inc.: 7.000% 02/15/14 (a) 12,000,000 11,340,000 7.750% 11/15/13 (a) 15,120,000 15,044,400 ----------- Services Total 92,554,012 SHIPPING - 0.9% Teekay Shipping Corp., 8.875% 07/15/11 14,306,000 16,308,840 ----------- Shipping Total 16,308,840 TELECOMMUNICATIONS - 1.9% Nextel Communications, Inc.: 7.375% 08/01/15 13,825,000 14,896,437 9.375% 11/15/09 12,525,000 13,527,000 9.500% 02/01/11 6,250,000 7,015,625 ----------- Telecommunications Total 35,439,062 TOTAL CORPORATE NOTES & BONDS (Cost of $1,626,399,876) 1,694,182,601 See Accompanying Notes to Financial Statements. 101 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA HIGH YIELD FUND PAR ($) VALUE ($) - ---------------------------------------------------------------------- SHORT-TERM OBLIGATION - 7.5% Repurchase agreement with State Street Bank & Trust Co., dated 02/27/04, due 03/01/04 at 0.930%, collateralized by U.S. Treasury Notes with various maturities to 07/15/06, market value $143,697,199 (repurchase proceeds $140,877,917) (Cost of $140,867,000) 140,867,000 140,867,000 ----------- TOTAL INVESTMENTS - 97.7% (COST OF $1,767,266,876) (b) 1,835,049,601 OTHER ASSETS & LIABILITIES, NET - 2.3% 42,932,335 NET ASSETS - 100.0% 1,877,981,936 NOTES TO INVESTMENT PORTFOLIO: (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 February 29, 2004, the value of these securities amounted to $248,971,691, which represents 13.3% of net assets. (b) Cost for federal income tax purposes is $1,774,275,430. See Accompanying Notes to Financial Statements. 102 INVESTMENT PORTFOLIO____________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA DAILY INCOME COMPANY PAR ($) VALUE ($) - ---------------------------------------------------------------------- U.S. GOVERNMENT AGENCIES - 14.6% Federal Farm Credit Bank (FFCB): 1.030% 03/03/04 5,000,000 4,999,714 2.800% 04/10/04 5,000,000 5,009,788 Federal Home Loan Bank (FHLB): 0.990% 04/12/04 8,300,000 8,290,414 1.000% 04/05/04 9,300,000 9,290,958 4.875% 04/16/04 12,500,000 12,560,596 Federal Home Loan Mortgage Corp. (FHLMC), 1.050% 08/24/04 11,124,000 11,066,897 Federal National Mortgage Association (FNMA): 1.015% 03/31/04 9,500,000 9,491,965 1.023% 03/11/04 (a) 15,000,000 14,999,772 Student Loan Marketing Association (SLMA): 0.989% 05/20/04 (a) 10,000,000 10,000,000 0.991% 08/19/04 (a) 10,000,000 10,000,000 4.750% 04/23/04 10,000,000 10,054,891 5.000% 06/30/04 3,900,000 3,951,430 ----------- TOTAL U.S. GOVERNMENT AGENCIES (Cost of $109,716,425) 109,716,425 COMMERCIAL PAPER - 83.8% Abbey National North America LLC, 1.030% 05/25/04 15,000,000 14,963,521 Abbott Laboratories, 1.040% 03/08/04 (b)(c) 9,700,000 9,698,038 American Express Credit Corp., 1.010% 05/27/04 12,200,000 12,170,222 American General Finance Corp.: 1.010% 03/17/04 10,000,000 9,995,511 1.030% 04/05/04 10,000,000 9,989,986 American Honda Finance: 1.000% 04/05/04 10,000,000 9,990,278 1.020% 03/11/04 6,300,000 6,298,215 Anheuser-Busch Companies, Inc., 1.050% 07/19/04 15,000,000 14,938,750 Archer-Daniels-Midland Co.: 1.030% 06/22/04 (b)(c) 8,400,000 8,372,842 1.070% 04/13/04 (b)(c) 6,565,000 6,556,610 Barclays U.S. Funding Corp., 1.000% 03/04/04 15,200,000 15,198,733 BellSouth Corp., 1.000% 03/01/04 15,000,000 15,000,000 BP America, Inc., 1.050% 03/09/04 19,000,000 18,995,567 ChevronTexaco Funding Corp., 0.990% 04/06/04 10,000,000 9,990,100 Citicorp: 1.020% 03/04/04 11,000,000 10,999,065 1.030% 03/10/04 11,000,000 10,997,168 Coca-Cola Co.: 1.000% 03/25/04 10,200,000 10,193,200 1.010% 03/22/04 5,500,000 5,496,760 PAR ($) VALUE ($) - ---------------------------------------------------------------------- Deutsche Bank Financial LLC, 1.030% 04/14/04 16,500,000 16,479,228 Diageo Capital PLC, 1.020% 04/26/04 (b)(c) 8,500,000 8,486,513 Du Pont EI de Nemours & Co., 1.010% 03/30/04 17,220,000 17,212,807 General Electric Capital Corp.: 1.030% 04/07/04 10,000,000 9,989,414 1.030% 04/09/04 8,000,000 7,991,073 GlaxoSmithKline PLC: 1.000% 03/15/04 (b)(c) 10,000,000 9,996,111 1.000% 04/19/04 (b)(c) 3,300,000 3,295,508 1.010% 04/14/04 (b)(c) 5,790,000 5,782,853 Goldman Sachs Group, Inc.: 1.100% 05/24/04 6,700,000 6,682,803 1.170% 05/24/04 10,000,000 9,972,700 Household Finance Corp., 1.030% 03/05/04 8,000,000 7,999,084 J.P. Morgan Chase & Co., 1.020% 04/13/04 12,000,000 11,985,380 Lubrizol Corp., 1.030% 04/29/04 (b)(c) 11,500,000 11,480,587 Merrill Lynch & Co., Inc., 1.010% 03/23/04 9,800,000 9,793,951 MetLife Funding, Inc.: 1.020% 04/13/04 8,500,000 8,489,644 1.030% 04/21/04 3,371,000 3,366,081 Minnesota Mining & Manufacturing Co., 1.000% 04/15/04 9,750,000 9,737,813 Morgan Stanley Dean Witter & Co.: 1.020% 03/18/04 8,000,000 7,996,147 1.030% 03/19/04 7,500,000 7,496,138 Nestle Capital Corp.: 0.990% 03/25/04 (b)(c) 11,000,000 10,992,740 1.000% 04/20/04 (b)(c) 8,500,000 8,488,194 PACCAR Financial Corp., 1.000% 04/08/04 16,200,000 16,182,900 Pfizer, Inc.: 0.990% 03/12/04 (b)(c) 14,000,000 13,995,765 1.000% 03/12/04 (b)(c) 6,000,000 5,998,167 Private Export Funding Corp.: 1.020% 05/17/04 10,500,000 10,477,093 1.040% 03/24/04 9,400,000 9,393,754 Prudential Funding Corp., 1.000% 03/16/04 (b)(c) 10,900,000 10,895,458 Royal Bank of Scotland PLC, 1.030% 03/01/04 17,000,000 17,000,000 San Paolo U.S. Finance Co., 1.070% 03/08/04 19,000,000 18,996,047 Shell Finance: 1.000% 03/16/04 12,000,000 11,995,000 1.020% 03/05/04 5,000,000 4,999,433 Siemens Capital Corp.: 1.020% 03/15/04 6,000,000 5,997,620 1.030% 03/15/04 9,500,000 9,496,195 Societe Generale of North America, Inc., 1.000% 04/01/04 16,000,000 15,986,222 See Accompanying Notes to Financial Statements. 103 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA DAILY INCOME COMPANY PAR ($) VALUE ($) - ---------------------------------------------------------------------- COMMERCIAL PAPER - (CONTINUED) Toyota Motor Credit Co.: 1.020% 03/18/04 9,500,000 9,495,424 1.030% 03/10/04 10,000,000 9,997,425 UBS Finance, Inc., 1.030% 03/01/04 15,000,000 15,000,000 Verizon Network Funding Corp., 1.000% 04/14/04 7,000,000 6,991,445 Wal-Mart Stores, Inc., 0.990% 03/02/04 (b)(c) 16,000,000 15,999,560 Washington Post Co., 1.000% 03/02/04 14,001,000 14,000,611 Wells Fargo & Co., 0.990% 03/19/04 12,000,000 11,994,060 ----------- TOTAL COMMERCIAL PAPER (Cost of $628,451,514) 628,451,514 CORPORATE BONDS - 3.1% Abbott Laboratories, 5.125% 07/01/04 4,000,000 4,052,886 Bank One N.A. Illinois, 1.310% 04/30/04 (a) 15,000,000 15,006,842 Wells Fargo & Co., 6.625% 07/15/04 4,100,000 4,184,524 ----------- TOTAL CORPORATE BONDS (Cost of $23,244,252) 23,244,252 TOTAL INVESTMENTS - 101.5% (COST OF $761,412,191) (d) 761,412,191 OTHER ASSETS & LIABILITIES, NET - (1.5)% (11,710,068) NET ASSETS - 100.0% 749,702,123 NOTES TO INVESTMENT PORTFOLIO: (a) Floating rate note whose interest rate is reset periodically based on an index. The interest rate shown reflects the rate in effect at February 29, 2004. (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 February 29, 2004, the aggregate amortized cost of the Fund's private placement securities were $130,038,946, which represents 17.3% 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 February 29, 2004, the value of these securities amounted to $130,038,946, which represents 17.3% of net assets. (d) Cost for both financial statement and federal income tax purposes is the same. See Accompanying Notes to Financial Statements. 104 This page intentionally left blank. 105 STATEMENTS OF ASSETS AND LIABILITIES____________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
COMMON INTERNATIONAL MID CAP SMALL CAP STOCK GROWTH STOCK GROWTH GROWTH FUND ($) FUND ($) FUND ($) FUND ($) FUND ($) - --------------------------------------------------------------------------------------------------------------------------------- ASSETS: Unaffiliated investments, at identified cost (including short-term obligations) 328,262,607 756,168,388 456,092,332 861,236,963 634,887,435 Affiliated investments, at identified cost 580,333 -- -- -- -- ------------ ------------- ------------- ------------- ------------ Unaffiliated investments, at value 407,751,932 959,111,710 516,926,054 1,056,560,118 778,976,917 Affiliated investments, at value 1,229,210 -- -- -- -- Repurchase agreement -- -- 27,070,000 20,813,000 15,956,000 ------------ ------------- ------------- ------------- ------------ Total investments, at value 408,981,142 959,111,710 543,996,054 1,077,373,118 794,932,917 Cash 54,039 -- 364 279 812 Foreign currency (cost of $57,836) -- -- 58,016 -- -- Receivable for: Investments sold 10,836,533 17,187,982 -- 20,331,586 6,662,176 Capital stock sold 729,102 288,912 1,075,779 414,270 1,724,104 Interest -- -- 2,098 1,613 1,237 Dividends 531,757 990,180 714,591 313,283 56,214 Foreign tax reclaim -- -- 306,230 -- -- Expense reimbursement or waiver due from Investment Advisor or Distributor -- 12,384 -- -- -- Deferred compensation plan -- 6,112 908 6,677 -- Other assets 46 -- 81,710 79,853 -- ------------ ------------- ------------- ------------- ------------ Total assets 421,132,619 977,597,280 546,235,750 1,098,520,679 803,377,460 - --------------------------------------------------------------------------------------------------------------------------------- LIABILITIES: Payable to custodian bank -- 2,949,016 -- -- -- Payable for: Investments purchased 4,462,277 8,175,950 -- 26,714,170 11,983,732 Capital stock redeemed 721,294 5,724,313 1,958,548 712,806 6,496,004 Futures variation margin -- -- -- -- -- Distributions -- -- -- -- -- Investment advisory fee 198,673 453,296 322,642 723,318 622,874 Transfer agent fee 38,730 10,927 19,947 -- 139,727 Pricing and bookkeeping fees 21,144 23,287 9,917 10,150 21,278 Directors' fees 794 -- 556 826 725 Audit fee 11,484 9,090 6,333 1,903 14,369 Service and distribution fees 1,878 6,869 13,471 14,752 -- Custody fee 4,365 7,374 -- -- 3,964 Legal fee 8,860 1,161 5,486 6,008 1,480 Registration fees 2,680 9,833 -- -- 14,768 Reports to shareholders 71,644 15,816 -- -- 24,357 Deferred compensation plan -- 6,112 908 6,677 -- Foreign capital gains tax payable -- -- 1,026,627 -- -- Other liabilities 6,028 11,891 -- -- 9,375 ------------ ------------- ------------- ------------- ------------ Total liabilities 5,549,851 17,404,935 3,364,435 28,190,610 19,332,653 NET ASSETS 415,582,768 960,192,345 542,871,315 1,070,330,069 784,044,807 - --------------------------------------------------------------------------------------------------------------------------------- NET ASSETS CONSIST OF: Paid-in capital 437,673,413 1,160,444,413 502,860,758 1,052,266,954 748,577,913 Undistributed (overdistributed) net investment income 186,654 30,215 -- -- -- Accumulated net investment loss -- -- (168,743) (3,894,057) (3,652,319) Accumulated net realized gain (loss) (102,415,501) (403,225,605) (46,830,429) (194,178,983) (120,926,269) Unrealized appreciation (depreciation) on: Investments 80,138,202 202,943,322 87,903,722 216,136,155 160,045,482 Foreign currency translations -- -- 132,634 -- -- Foreign capital gains tax -- -- (1,026,627) -- -- Futures contracts -- -- -- -- -- ------------ ------------- ------------- ------------- ------------ NET ASSETS 415,582,768 960,192,345 542,871,315 1,070,330,069 784,044,807
REAL ESTATE STRATEGIC SHORT TERM EQUITY TECHNOLOGY INVESTOR BALANCED BOND FUND ($) FUND ($) FUND ($) FUND ($) FUND ($) - ------------------------------------------------------------------------------------------------------------------------------ ASSETS: Unaffiliated investments, at identified cost (including short-term obligations) 753,709,227 35,057,727 279,369,420 542,261,300 525,622,523 Affiliated investments, at identified cost -- -- -- 2,948,028 9,097,416 ------------- ---------- ----------- ------------ ----------- Unaffiliated investments, at value 1,053,546,570 39,726,280 278,528,298 613,545,266 509,957,207 Affiliated investments, at value -- -- -- 3,914,292 9,154,488 Repurchase agreement 37,010,000 265,000 67,191,000 10,051,000 20,892,000 ------------- ---------- ----------- ------------ ----------- Total investments, at value 1,090,556,570 39,991,280 345,719,298 627,510,558 540,003,695 Cash 851 49 -- 276,942 708 Foreign currency (cost of $57,836) -- -- -- -- -- Receivable for: Investments sold -- 2,365,090 4,383,391 4,895,494 1,487,993 Capital stock sold 2,276,612 165,094 1,843,250 678,676 2,430,912 Interest 2,868 21 5,207 1,745,920 3,623,092 Dividends 696,646 735 390,350 531,372 -- Foreign tax reclaim -- -- -- -- -- Expense reimbursement or waiver due from Investment Advisor or Distributor -- 50,851 -- -- 94,267 Deferred compensation plan -- -- 9,898 -- 5,416 Other assets 2,179 10,966 42,847 -- -- ------------- ---------- ----------- ------------ ----------- Total assets 1,093,535,726 42,584,086 352,394,241 635,638,962 547,646,083 - ------------------------------------------------------------------------------------------------------------------------------ LIABILITIES: Payable to custodian bank -- -- 5,092 -- -- Payable for: Investments purchased 2,156,664 2,043,209 4,942,666 4,699,585 2,310,482 Capital stock redeemed 2,599,863 165,033 632,773 8,468,186 938,576 Futures variation margin -- -- -- -- 42,109 Distributions -- -- -- -- 529,700 Investment advisory fee 635,225 32,476 202,639 253,477 199,589 Transfer agent fee 98,234 -- 59,332 14,512 22,986 Pricing and bookkeeping fees 22,961 -- 9,789 24,934 21,782 Directors' fees 126 -- 705 900 914 Audit fee 7,343 6,129 2,880 9,874 8,787 Service and distribution fees 20,907 3,381 23,495 6,316 45,486 Custody fee 2,761 -- 1,301 6,622 2,883 Legal fee -- 6,993 2,447 10,024 -- Registration fees 7,408 6,101 -- 5,333 27,811 Reports to shareholders -- 4,595 -- 49,274 97 Deferred compensation plan -- -- 9,898 -- 5,416 Foreign capital gains tax payable -- -- -- -- -- Other liabilities 8,526 -- -- 4,771 5,194 ------------- ---------- ----------- ------------ ----------- Total liabilities 5,560,018 2,267,917 5,893,017 13,553,808 4,161,812 NET ASSETS 1,087,975,708 40,316,169 346,501,224 622,085,154 543,484,271 - ------------------------------------------------------------------------------------------------------------------------------ NET ASSETS CONSIST OF: Paid-in capital 752,525,837 36,587,951 285,720,151 639,460,732 539,677,479 Undistributed (overdistributed) net investment income 7,907,165 -- 74,642 1,300,714 81,538 Accumulated net investment loss -- (262,555) -- -- -- Accumulated net realized gain (loss) (9,304,637) (942,780) (5,643,384) (100,977,522) (1,489,595) Unrealized appreciation (depreciation) on: Investments 336,847,343 4,933,553 66,349,878 82,301,230 5,283,756 Foreign currency translations -- -- (63) -- -- Foreign capital gains tax -- -- -- -- -- Futures contracts -- -- -- -- (68,907) ------------- ---------- ----------- ------------ ----------- NET ASSETS 1,087,975,708 40,316,169 346,501,224 622,085,154 543,484,271
FIXED NATIONAL OREGON INCOME MUNICIPAL MUNICIPAL DAILY SECURITIES BOND BOND HIGH YIELD INCOME FUND ($) FUND ($) FUND ($) FUND ($) COMPANY ($) - ------------------------------------------------------------------------------------------------------------------------------- ASSETS: Unaffiliated investments, at identified cost (including short-term obligations) 388,603,095 14,518,101 453,913,365 1,767,266,876 761,412,191 Affiliated investments, at identified cost -- -- -- -- -- ------------ ---------- ----------- ------------- ----------- Unaffiliated investments, at value 391,903,741 15,531,341 484,450,721 1,694,182,601 761,412,191 Affiliated investments, at value -- -- -- -- -- Repurchase agreement 10,155,000 -- -- 140,867,000 -- ------------ ---------- ----------- ------------- ----------- Total investments, at value 402,058,741 15,531,341 484,450,721 1,835,049,601 761,412,191 Cash 588,810 -- -- 16,568,734 113,907 Foreign currency (cost of $57,836) -- -- -- -- -- Receivable for: Investments sold 827,884 -- 108,140 314,479 -- Capital stock sold 722,344 349,548 452,941 5,006,331 1,932,301 Interest 3,522,624 177,172 5,531,541 32,850,402 616,274 Dividends -- -- -- -- -- Foreign tax reclaim -- -- -- -- -- Expense reimbursement or waiver due from Investment Advisor or Distributor -- 52,524 -- -- -- Deferred compensation plan -- -- -- -- -- Other assets 175,703 1,819 -- 9,847 574,349 ------------ ---------- ----------- ------------- ----------- Total assets 407,896,106 16,112,404 490,543,343 1,889,799,394 764,649,022 ------------------------------------------------------------------------------------------------------------------------------ LIABILITIES: Payable to custodian bank -- -- -- -- -- Payable for: Investments purchased -- -- 3,334,453 1,188,806 8,307,423 Capital stock redeemed 2,146,888 15,041 349,679 6,565,792 6,035,241 Futures variation margin -- -- -- -- -- Distributions -- 7,560 205,938 2,752,213 -- Investment advisory fee 162,441 6,180 191,952 868,102 293,344 Transfer agent fee 29,918 2,901 37,686 54,006 187,583 Pricing and bookkeeping fees 22,975 2,083 14,720 20,014 26,413 Directors' fees 21 2,128 578 1,023 2,019 Audit fee 12,089 7,598 9,890 13,117 14,022 Service and distribution fees 9,126 1,742 2,424 272,062 -- Custody fee 2,763 -- 765 3,099 4,860 Legal fee 5,283 1,884 -- 551 1,948 Registration fees 3,300 1,641 4,781 78,673 15,766 Reports to shareholders 7,869 7,096 22,667 -- 37,895 Deferred compensation plan -- -- -- -- -- Foreign capital gains tax payable -- -- -- -- -- Other liabilities 17,102 -- 2,570 -- 20,385 ------------ ---------- ----------- ------------- ----------- Total liabilities 2,419,775 55,854 4,178,103 11,817,458 14,946,899 NET ASSETS 405,476,331 16,056,550 486,365,240 1,877,981,936 749,702,123 - ------------------------------------------------------------------------------------------------------------------------------- NET ASSETS CONSIST OF: Paid-in capital 391,686,834 15,002,417 455,517,998 1,846,496,229 749,702,123 Undistributed (overdistributed) net investment income (1,230,558) 3,206 156,547 (7,643,402) -- Accumulated net investment loss -- -- -- -- -- Accumulated net realized gain (loss) 1,564,409 37,687 153,339 (28,653,616) -- Unrealized appreciation (depreciation) on: Investments 13,455,646 1,013,240 30,537,356 67,782,725 -- Foreign currency translations -- -- -- -- -- Foreign capital gains tax -- -- -- -- -- Futures contracts -- -- -- -- -- ------------ ---------- ----------- ------------- ----------- NET ASSETS 405,476,331 16,056,550 486,365,240 1,877,981,936 749,702,123
See Accompanying Notes to Financial Statements. 106-107 Spread STATEMENTS OF ASSETS AND LIABILITIES____________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
COMMON INTERNATIONAL MID CAP SMALL CAP STOCK GROWTH STOCK GROWTH GROWTH FUND (a)($) FUND (a)($) FUND (a)($) FUND (a)($) FUND ($) - ----------------------------------------------------------------------------------------------------------------------------------- NET ASSETS: Class A Shares 729,230 5,339,868 25,812,371 6,500,086 -- Class B Shares 1,926,830 2,086,070 12,050,432 5,772,056 -- Class C Shares 48,406 98,142 300,575 264,376 -- Class D Shares 152,462 293,867 776,703 802,682 -- Class G Shares -- 15,247,985 -- 808,876 -- Class T Shares -- -- -- 31,146,285 -- Class Z Shares 412,725,840 937,126,413 503,931,234 1,025,035,708 784,044,807 - ----------------------------------------------------------------------------------------------------------------------------------- SHARES OUTSTANDING: Class A Shares 37,575 198,682 1,879,424 332,764 -- Class B Shares 100,081 78,383 889,685 298,426 -- Class C Shares 2,514 3,696 22,133 13,652 -- Class D Shares 7,923 11,032 56,999 41,482 -- Class G Shares -- 572,062 -- 41,892 -- Class T Shares -- -- -- 1,590,853 -- Class Z Shares 21,265,931 34,693,552 36,509,529 52,119,968 31,582,456 - ----------------------------------------------------------------------------------------------------------------------------------- CLASS A SHARES: Net asset value per share (b)(c) 19.41 26.88 13.73 19.53 -- Maximum sales charge 5.75% 5.75% 5.75% 5.75% -- Maximum offering price per share (d) 20.59 28.52 14.57 20.72 -- - ----------------------------------------------------------------------------------------------------------------------------------- CLASS B SHARES: Net asset value and offering price per share (b)(c) 19.25 26.61 13.54 19.34 -- - ----------------------------------------------------------------------------------------------------------------------------------- CLASS C SHARES: Net asset value and offering price per share (b)(c) 19.25 26.55 13.58 19.37 -- - ----------------------------------------------------------------------------------------------------------------------------------- CLASS D SHARES: Net asset value and offering price per share (b)(c) 19.24 26.64 13.63 19.35 -- - ----------------------------------------------------------------------------------------------------------------------------------- CLASS G SHARES: Net asset value and offering price per share (b)(c) -- 26.65 -- 19.31 -- - ----------------------------------------------------------------------------------------------------------------------------------- CLASS T SHARES: Net asset value per share (b)(c) -- -- -- 19.58 -- Maximum sales charge -- -- -- 5.75% -- Maximum offering price per share (d) -- -- -- 20.77 -- - ----------------------------------------------------------------------------------------------------------------------------------- CLASS Z SHARES: Net asset value and offering price per share (c) 19.41 27.01 13.80 19.67 24.83
REAL ESTATE STRATEGIC SHORT TERM EQUITY TECHNOLOGY INVESTOR BALANCED BOND FUND (a)($) FUND (a)($) FUND (a)($) FUND (a)($) FUND (a)($) - -------------------------------------------------------------------------------------------------------------------------------- NET ASSETS: Class A Shares 36,969,171 1,832,663 74,187,450 1,945,944 31,408,426 Class B Shares 9,043,657 3,213,144 8,513,324 5,754,584 24,705,639 Class C Shares 1,524,280 229,729 3,149,375 527,404 1,859,477 Class D Shares 4,892,023 41,523 820,832 519,963 15,919,149 Class G Shares -- -- -- -- 1,285,317 Class T Shares -- -- -- -- 25,761,838 Class Z Shares 1,035,546,577 34,999,110 259,830,243 613,337,259 442,544,425 - -------------------------------------------------------------------------------------------------------------------------------- SHARES OUTSTANDING: Class A Shares 1,509,305 249,164 3,985,371 93,022 3,609,038 Class B Shares 369,057 441,591 460,692 275,385 2,838,790 Class C Shares 62,232 31,544 170,399 25,240 213,674 Class D Shares 199,708 5,677 44,454 24,891 1,829,153 Class G Shares -- -- -- -- 147,653 Class T Shares -- -- -- -- 2,960,093 Class Z Shares 42,255,634 4,728,149 13,938,968 29,335,632 50,850,195 - -------------------------------------------------------------------------------------------------------------------------------- CLASS A SHARES: Net asset value per share (b)(c) 24.49 7.36 18.61 20.92 8.70 Maximum sales charge 5.75% 5.75% 5.75% 5.75% 4.75% Maximum offering price per share (d) 25.98 7.81 19.75 22.20 9.13 - -------------------------------------------------------------------------------------------------------------------------------- CLASS B SHARES: Net asset value and offering price per share (b)(c) 24.50 7.28 18.48 20.90 8.70 - -------------------------------------------------------------------------------------------------------------------------------- CLASS C SHARES: Net asset value and offering price per share (b)(c) 24.49 7.28 18.48 20.90 8.70 - -------------------------------------------------------------------------------------------------------------------------------- CLASS D SHARES: Net asset value and offering price per share (b)(c) 24.50 7.31 18.46 20.89 8.70 - -------------------------------------------------------------------------------------------------------------------------------- CLASS G SHARES: Net asset value and offering price per share (b)(c) -- -- -- -- 8.70 - -------------------------------------------------------------------------------------------------------------------------------- CLASS T SHARES: Net asset value per share (b)(c) -- -- -- -- 8.70 Maximum sales charge -- -- -- -- 4.75% Maximum offering price per share (d) -- -- -- -- 9.13 - -------------------------------------------------------------------------------------------------------------------------------- CLASS Z SHARES: Net asset value and offering price per share (c) 24.51 7.40 18.64 20.91 8.70
FIXED NATIONAL OREGON INCOME MUNICIPAL MUNICIPAL DAILY SECURITIES BOND BOND HIGH YIELD INCOME FUND (a)($) FUND (a)($) FUND (a)($) FUND (a)($) COMPANY ($) - -------------------------------------------------------------------------------------------------------------------------------- NET ASSETS: Class A Shares 9,188,766 968,549 2,692,572 288,249,334 -- Class B Shares 4,715,666 773,668 1,379,472 106,288,244 -- Class C Shares 132,086 819,204 63,250 14,450,335 -- Class D Shares 2,458,237 502,048 805,058 107,350,518 -- Class G Shares -- -- -- -- -- Class T Shares -- -- -- -- -- Class Z Shares 388,981,576 12,993,081 481,424,888 1,361,643,505 749,702,123 - -------------------------------------------------------------------------------------------------------------------------------- SHARES OUTSTANDING: Class A Shares 673,358 92,437 212,731 32,883,042 -- Class B Shares 345,573 73,839 108,988 12,125,210 -- Class C Shares 9,680 78,185 4,997 1,648,455 -- Class D Shares 180,141 47,915 63,605 12,246,431 -- Class G Shares -- -- -- -- -- Class T Shares -- -- -- -- -- Class Z Shares 28,506,195 1,240,048 38,036,039 155,333,816 749,702,123 - -------------------------------------------------------------------------------------------------------------------------------- CLASS A SHARES: Net asset value per share (b)(c) 13.65 10.48 12.66 8.77 -- Maximum sales charge 4.75% 4.75% 4.75% 4.75% -- Maximum offering price per share (d) 14.33 11.00 13.29 9.21 -- - -------------------------------------------------------------------------------------------------------------------------------- CLASS B SHARES: Net asset value and offering price per share (b)(c) 13.65 10.48 12.66 8.77 -- - -------------------------------------------------------------------------------------------------------------------------------- CLASS C SHARES: Net asset value and offering price per share (b)(c) 13.65 10.48 12.66 8.77 -- - -------------------------------------------------------------------------------------------------------------------------------- CLASS D SHARES: Net asset value and offering price per share (b)(c) 13.65 10.48 12.66 8.77 -- - -------------------------------------------------------------------------------------------------------------------------------- CLASS G SHARES: Net asset value and offering price per share (b)(c) -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- CLASS T SHARES: Net asset value per share (b)(c) -- -- -- -- -- Maximum sales charge -- -- -- -- -- Maximum offering price per share (d) -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- CLASS Z SHARES: Net asset value and offering price per share (c) 13.65 10.48 12.66 8.77 1.00
(a) Class C shares were initially offered on October 13, 2003. (b) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. (c) Redemption price per share is equal to net asset value less any applicable redemption fees. (d) On sales of $50,000 or more the offering price is reduced. See Accompanying Notes to Financial Statements. 108-109 Spread STATEMENTS OF OPERATIONS________________________________________________________ FOR THE SIX MONTHS ENDED FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
COMMON INTERNATIONAL MID CAP SMALL CAP STOCK GROWTH STOCK GROWTH GROWTH FUND (a)($) FUND (a)($) FUND (a)($) FUND (a)($) FUND ($) - ------------------------------------------------------------------------------------------------------------------------------ NET INVESTMENT INCOME: INCOME: Dividends 2,808,159 4,003,804 2,355,016 1,424,926 392,167 Dividends from affiliates 121,328 -- -- -- -- Interest 17,953 18,757 103,827 134,607 146,759 Interest from affiliates -- -- -- -- -- Foreign withholding tax (5,633) (16,769) (238,193) (7,011) (2,330) ----------- ----------- ------------- ----------- ----------- Total income 2,941,807 4,005,792 2,220,650 1,552,522 536,596 - ------------------------------------------------------------------------------------------------------------------------------ EXPENSES: Investment advisory fee 1,264,341 2,802,738 2,062,548 4,522,181 3,600,203 Distribution fee: Class B 4,388 5,104 42,030 18,022 -- Class C 137 165 806 341 -- Class D 527 1,133 2,671 2,913 -- Class G -- 48,459 -- 2,617 -- Service fee: Class A 542 5,892 30,276 6,372 -- Class B 1,451 1,701 14,010 6,007 -- Class C 45 55 266 114 -- Class D 174 382 886 967 -- Class G -- 22,366 -- 1,208 -- Shareholder services fees - Class T -- -- -- 45,379 -- Transfer agent fee: Class A 498 5,374 56,919 8,747 -- Class B 1,677 1,881 36,532 12,295 -- Class C 38 40 335 167 -- Class D 139 310 2,174 1,358 -- Class G -- 15,319 -- 2,663 -- Class T -- -- -- 40,402 -- Class Z 440,677 822,238 247,083 770,115 555,401 Pricing and bookkeeping fees 65,221 80,586 53,526 70,332 75,267 Directors' fees 5,550 3,396 3,436 15,102 12,083 Custody fee 17,973 15,468 46,371 11,590 9,901 Audit fee 15,066 19,166 12,385 19,779 14,945 Registration fees 77,972 45,832 30,822 44,251 48,782 Other expenses 46,965 76,740 27,673 94,605 53,750 ----------- ----------- ------------- ----------- ----------- Total Operating Expenses 1,943,381 3,974,345 2,670,749 5,697,527 4,370,332 Expenses waived/reimbursed by Investment Advisor -- -- (83,945) -- -- Fees waived by Distributor: Class C -- -- -- -- -- Class D -- -- -- -- -- Fees waived by Investment Advisor: Class A -- -- -- (245) -- Class B -- -- (6,164) (2,879) -- Class C -- -- (310) (40) -- Class D -- -- (2,065) (347) -- Class Z -- -- (193,255) (249,569) -- Custody earnings credit (12) (57) (296) (53) (420) ----------- ----------- ------------- ----------- ----------- Net Operating Expenses 1,943,369 3,974,288 2,384,714 5,444,394 4,369,912 Interest expense 721 -- -- -- -- ----------- ----------- ------------- ----------- ----------- Net Expenses 1,944,090 3,974,288 2,384,714 5,444,394 4,369,912 ----------- ----------- ------------- ----------- ----------- Net Investment Income (Loss) 997,717 31,504 (164,064) (3,891,872) (3,833,316)
REAL ESTATE STRATEGIC SHORT TERM EQUITY TECHNOLOGY INVESTOR BALANCED BOND FUND (a)($) FUND (a)($) FUND (a)($) FUND (a)($) FUND (a)($) - ------------------------------------------------------------------------------------------------------------------------------ NET INVESTMENT INCOME: INCOME: Dividends 25,138,876 12,903 1,863,112 2,755,983 -- Dividends from affiliates -- -- -- 120,416 -- Interest 210,058 8,058 253,192 5,154,902 7,395,499 Interest from affiliates -- -- -- 86,775 228,796 Foreign withholding tax (18,567) (148) (17,635) (5,628) -- ----------- ----------- ------------- ----------- ----------- Total income 25,330,367 20,813 2,098,669 8,112,448 7,624,295 - ------------------------------------------------------------------------------------------------------------------------------ EXPENSES: Investment advisory fee 3,702,474 164,114 1,164,077 1,590,071 1,339,455 Distribution fee: Class B 25,623 8,237 17,792 16,827 97,710 Class C 1,755 395 1,626 819 3,046 Class D 16,567 171 2,836 2,804 67,349 Class G -- -- -- -- 4,490 Service fee: Class A 33,418 1,417 80,329 1,437 38,101 Class B 8,541 2,746 5,893 5,609 32,570 Class C 585 131 542 273 1,017 Class D 5,522 57 945 934 22,450 Class G -- -- -- -- 1,102 Shareholder services fees - Class T -- -- -- -- 20,052 Transfer agent fee: Class A 19,065 1,419 44,272 1,500 15,482 Class B 6,919 3,140 8,045 4,880 23,479 Class C 362 204 1,262 240 403 Class D 3,110 197 898 782 6,741 Class G -- -- -- -- 2,329 Class T -- -- -- -- 20,475 Class Z 770,079 59,644 206,877 584,841 193,742 Pricing and bookkeeping fees 80,296 16,355 48,076 92,254 92,506 Directors' fees 10,887 1,896 5,302 7,361 1,133 Custody fee 12,707 6,105 11,968 23,082 10,971 Audit fee 14,790 10,705 18,456 14,703 17,909 Registration fees 105,758 59,689 22,729 81,281 113,263 Other expenses 71,049 15,626 33,254 56,255 39,657 ----------- ----------- ------------- ----------- ----------- Total Operating Expenses 4,889,507 352,248 1,675,179 2,485,953 2,165,432 Expenses waived/reimbursed by Investment Advisor -- (68,552) -- -- (103,087) Fees waived by Distributor: Class C -- -- -- -- (2,447) Class D -- -- -- -- (53,880) Fees waived by Investment Advisor: Class A -- -- -- -- -- Class B -- -- (5,431) -- -- Class C -- -- (325) -- -- Class D -- -- (568) -- -- Class Z -- -- (36,062) -- -- Custody earnings credit (119) (328) (161) (178) (378) ----------- ----------- ------------- ----------- ----------- Net Operating Expenses 4,889,388 283,368 1,632,632 2,485,775 2,005,640 Interest expense -- -- -- -- -- ----------- ----------- ------------- ----------- ----------- Net Expenses 4,889,388 283,368 1,632,632 2,485,775 2,005,640 ----------- ----------- ------------- ----------- ----------- Net Investment Income (Loss) 20,440,979 (262,555) 466,037 5,626,673 5,618,655
FIXED NATIONAL OREGON INCOME MUNICIPAL MUNICIPAL DAILY SECURITIES BOND BOND HIGH YIELD INCOME FUND (a)($) FUND (a)($) FUND (a)($) FUND (a)($) COMPANY ($) - ------------------------------------------------------------------------------------------------------------------------------ NET INVESTMENT INCOME: INCOME: Dividends -- -- -- -- -- Dividends from affiliates -- -- -- -- -- Interest 11,017,383 347,059 11,371,235 58,979,645 4,371,134 Interest from affiliates -- -- -- -- -- Foreign withholding tax -- -- -- -- -- ----------- ----------- ------------- ----------- ----------- Total income 11,017,383 347,059 11,371,235 58,979,645 4,371,134 - ------------------------------------------------------------------------------------------------------------------------------ EXPENSES: Investment advisory fee 1,182,274 39,358 1,205,022 5,318,067 1,990,584 Distribution fee: Class B 16,954 2,586 4,706 374,180 -- Class C 189 1,907 150 19,057 -- Class D 9,279 1,814 2,983 408,997 -- Class G -- -- -- -- -- Service fee: Class A 10,243 789 2,971 299,040 -- Class B 5,651 862 1,569 124,727 -- Class C 65 630 50 6,353 -- Class D 3,093 605 988 136,332 -- Class G -- -- -- -- -- Shareholder services fees - Class T -- -- -- -- -- Transfer agent fee: Class A 9,734 906 1,183 110,276 -- Class B 6,023 838 686 62,170 -- Class C 51 427 8 2,903 -- Class D 2,870 334 425 59,300 -- Class G -- -- -- -- -- Class T -- -- -- -- -- Class Z 400,191 9,822 116,576 711,182 750,341 Pricing and bookkeeping fees 77,074 27,974 94,185 100,553 79,550 Directors' fees 4,509 1,738 7,282 23,651 11,327 Custody fee 9,393 2,276 8,444 24,232 10,810 Audit fee 16,611 14,120 16,812 17,740 14,461 Registration fees 55,560 47,471 80,189 221,754 33,974 Other expenses 27,804 12,264 33,528 113,283 58,683 ----------- ----------- ------------- ----------- ----------- Total Operating Expenses 1,837,568 166,721 1,577,757 8,133,797 2,949,730 Expenses waived/reimbursed by Investment Advisor -- (106,237) -- -- -- Fees waived by Distributor: Class C (46) (887) (70) (3,895) -- Class D (1,856) (847) (1,392) (81,800) -- Fees waived by Investment Advisor: Class A -- -- -- -- -- Class B -- -- -- -- -- Class C -- -- -- -- -- Class D -- -- -- -- -- Class Z -- -- -- -- -- Custody earnings credit (268) (53) (24) (7,494) (88) ----------- ----------- ------------- ----------- ----------- Net Operating Expenses 1,835,398 58,697 1,576,271 8,040,608 2,949,642 Interest expense -- -- -- -- -- ----------- ----------- ------------- ----------- ----------- Net Expenses 1,835,398 58,697 1,576,271 8,040,608 2,949,642 ----------- ----------- ------------- ----------- ----------- Net Investment Income (Loss) 9,181,985 288,362 9,794,964 50,939,037 1,421,492
(a) Class C shares were initially offered on October 13, 2003. See Accompanying Notes to Financial Statements. 110-111 Spread STATEMENTS OF OPERATIONS________________________________________________________ FOR THE SIX MONTHS ENDED FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
COMMON INTERNATIONAL MID CAP SMALL CAP STOCK GROWTH STOCK GROWTH GROWTH FUND ($) FUND ($) FUND ($) FUND ($) FUND ($) - ----------------------------------------------------------------------------------------------------------------------------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FOREIGN CURRENCY, FUTURES CONTRACTS AND FOREIGN CAPITAL GAINS TAX: Net realized gain (loss) on: Unaffiliated investments 42,736,790 63,181,126 16,874,142 73,956,697 88,360,265 Affiliated investments 3,150,135 -- -- -- -- Foreign currency transactions -- -- (127,635) -- -- Futures contracts -- -- -- -- -- ---------- ---------- ------------- ---------- ----------- Net realized gain 45,886,925 63,181,126 16,746,507 73,956,697 88,360,265 ---------- ---------- ------------- ---------- ----------- Change in net unrealized appreciation/depreciation on: Investments 4,948,391 21,879,434 58,739,481 12,544,784 13,696,464 Foreign currency translations -- -- 214,196 -- -- Futures contracts -- -- -- -- -- Foreign capital gains tax -- -- (653,372) -- -- ---------- ---------- ------------- ---------- ----------- Net change in net unrealized appreciation/depreciation 4,948,391 21,879,434 58,300,305 12,544,784 13,696,464 ---------- ---------- ------------- ---------- ----------- Net Gain 50,835,316 85,060,560 75,046,812 86,501,481 102,056,729 ---------- ---------- ------------- ---------- ----------- Net Increase Resulting from Operations 51,833,033 85,092,064 74,882,748 82,609,609 98,223,413
REAL ESTATE STRATEGIC SHORT TERM EQUITY TECHNOLOGY INVESTOR BALANCED BOND FUND ($) FUND ($) FUND ($) FUND ($) FUND ($) - ----------------------------------------------------------------------------------------------------------------------------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FOREIGN CURRENCY, FUTURES CONTRACTS AND FOREIGN CAPITAL GAINS TAX: Net realized gain (loss) on: Unaffiliated investments 10,157,402 4,980,062 24,487,535 46,202,554 982,197 Affiliated investments -- -- -- 2,860,757 -- Foreign currency transactions -- 39 (91,065) -- -- Futures contracts -- -- -- -- (400,390) ----------- ---------- ----------- ---------- ---------- Net realized gain 10,157,402 4,980,101 24,396,470 49,063,311 581,807 ----------- ---------- ----------- ---------- ---------- Change in net unrealized appreciation/depreciation on: Investments 145,498,133 1,726,947 24,975,175 5,984,289 4,376,512 Foreign currency translations -- -- 13 -- -- Futures contracts -- -- -- -- (68,907) Foreign capital gains tax -- -- -- -- -- ----------- ---------- ----------- ---------- ---------- Net change in net unrealized appreciation/depreciation 145,498,133 1,726,947 24,975,188 5,984,289 4,307,605 ----------- ---------- ----------- ---------- ---------- Net Gain 155,655,535 6,707,048 49,371,658 55,047,600 4,889,412 ----------- ---------- ----------- ---------- ---------- Net Increase Resulting from Operations 176,096,514 6,444,493 49,837,695 60,674,273 10,508,067
FIXED NATIONAL OREGON INCOME MUNICIPAL MUNICIPAL DAILY SECURITIES BOND BOND HIGH YIELD INCOME FUND ($) FUND ($) FUND ($) FUND ($) COMPANY ($) - ----------------------------------------------------------------------------------------------------------------------------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FOREIGN CURRENCY, FUTURES CONTRACTS AND FOREIGN CAPITAL GAINS TAX: Net realized gain (loss) on: Unaffiliated investments 4,469,498 101,566 2,274,158 7,138,103 -- Affiliated investments -- -- -- -- -- Foreign currency transactions -- -- -- -- -- Futures contracts -- -- -- -- -- ---------- --------- ---------- ----------- ----------- Net realized gain 4,469,498 101,566 2,274,158 7,138,103 -- ---------- --------- ---------- ----------- ----------- Change in net unrealized appreciation/depreciation on: Investments 6,446,913 588,784 19,157,214 51,523,061 -- Foreign currency translations -- -- -- -- -- Futures contracts -- -- -- -- -- Foreign capital gains tax -- -- -- -- -- ---------- --------- ---------- ----------- ----------- Net change in net unrealized appreciation/depreciation 6,446,913 588,784 19,157,214 51,523,061 -- ---------- --------- ---------- ----------- ----------- Net Gain 10,916,411 690,350 21,431,372 58,661,164 -- ---------- --------- ---------- ----------- ----------- Net Increase Resulting from Operations 20,098,396 978,712 31,226,336 109,600,201 1,421,492
See Accompanying Notes to Financial Statements. 112-113 Spread STATEMENTS OF CHANGES IN NET ASSETS_____________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
COMMON STOCK FUND ------------------------------------------------ (UNAUDITED) SIX MONTHS PERIOD YEAR ENDED ENDED ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, INCREASE (DECREASE) IN NET ASSETS: 2004 (a)($) 2003 (b)($) 2002 (c)($) - -------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) 997,717 1,506,437 2,314,001 Net realized gain (loss) on investments and foreign currency transactions 45,886,925 (10,351,264) (76,671,127) Net change in unrealized appreciation/depreciation on investments, foreign currency translations and foreign capital gains tax 4,948,391 70,348,296 (87,529,297) ------------ ------------ ------------ Net increase (decrease) resulting from operations 51,833,033 61,503,469 (161,886,423) - -------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A (707) -- (24) Class B -- -- (365) Class D -- -- (105) Class Z (2,316,802) -- (2,325,116) Return of capital: Class Z -- -- -- ------------ ------------ ------------ Total distributions to shareholders (2,317,509) -- (2,325,610) - -------------------------------------------------------------------------------------------------------- NET CAPITAL SHARE TRANSACTIONS (62,557,474) (49,688,127) (100,375,770) ------------ ------------ ------------ REDEMPTION FEES -- -- -- ------------ ------------ ------------ Net increase (decrease) in net assets (13,041,950) 11,815,342 (264,587,803) - -------------------------------------------------------------------------------------------------------- NET ASSETS: Beginning of period 428,624,718 416,809,376 681,397,179 End of period 415,582,768 428,624,718 416,809,376 ------------ ------------ ------------ Undistributed (overdistributed) net investment income at end of period 186,654 1,506,446 -- Accumulated net investment loss at end of period -- -- --
GROWTH FUND -------------------------------------------------- (UNAUDITED) SIX MONTHS PERIOD YEAR ENDED ENDED ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, INCREASE (DECREASE) IN NET ASSETS: 2004 (a)($) 2003 (b)($) 2002 (d)($) - ----------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) 31,504 (67,881) (334,512) Net realized gain (loss) on investments and foreign currency transactions 63,181,126 6,034,740 (234,361,212) Net change in unrealized appreciation/depreciation on investments, foreign currency translations and foreign capital gains tax 21,879,434 138,988,772 (189,831,805) ------------ ------------ -------------- Net increase (decrease) resulting from operations 85,092,064 144,955,631 (424,527,529) - ----------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A -- -- -- Class B -- -- -- Class D -- -- -- Class Z -- -- -- Return of capital: Class Z -- -- -- ------------ ------------ -------------- Total distributions to shareholders -- -- -- - ----------------------------------------------------------------------------------------------------------- NET CAPITAL SHARE TRANSACTIONS (54,635,971) (43,866,493) (72,669,754) ------------ ------------ -------------- REDEMPTION FEES -- -- -- ------------ ------------ -------------- Net increase (decrease) in net assets 30,456,093 101,089,138 (497,197,283) - ----------------------------------------------------------------------------------------------------------- NET ASSETS: Beginning of period 929,736,252 828,647,114 1,325,844,397 End of period 960,192,345 929,736,252 828,647,114 ------------ ------------ -------------- Undistributed (overdistributed) net investment income at end of period 30,215 -- -- Accumulated net investment loss at end of period -- (1,289) --
INTERNATIONAL STOCK FUND -------------------------------------------- (UNAUDITED) SIX MONTHS PERIOD YEAR ENDED ENDED ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, INCREASE (DECREASE) IN NET ASSETS: 2004 (a)($) 2003 (b)($) 2002 (c)($) - ----------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) (164,064) 1,285,611 (60,403) Net realized gain (loss) on investments and foreign currency transactions 16,746,507 (4,669,563) (16,450,936) Net change in unrealized appreciation/depreciation on investments, foreign currency translations and foreign capital gains tax 58,300,305 32,813,483 (5,145,567) ------------ ------------ ------------ Net increase (decrease) resulting from operations 74,882,748 29,429,531 (21,656,906) - ----------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A -- -- -- Class B -- -- -- Class D -- -- -- Class Z (1,289,659) -- (102,850) Return of capital: Class Z -- -- (403,799) ------------ ------------ ------------ Total distributions to shareholders (1,289,659) -- (506,649) - ----------------------------------------------------------------------------------------------------- NET CAPITAL SHARE TRANSACTIONS 187,903,043 76,764,211 61,510,684 ------------ ------------ ------------ REDEMPTION FEES 43,624 164,843 -- ------------ ------------ ------------ Net increase (decrease) in net assets 261,539,756 106,358,585 39,347,129 - ----------------------------------------------------------------------------------------------------- NET ASSETS: Beginning of period 281,331,559 174,972,974 135,625,845 End of period 542,871,315 281,331,559 174,972,974 ------------ ------------ ------------ Undistributed (overdistributed) net investment income at end of period -- 1,284,980 -- Accumulated net investment loss at end of period (168,743) -- (14,405)
MID CAP GROWTH FUND ------------------------------------------------ (UNAUDITED) SIX MONTHS PERIOD YEAR ENDED ENDED ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, INCREASE (DECREASE) IN NET ASSETS: 2004 (a)($) 2003 (b)($) 2002 (e)($) - --------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) (3,891,872) (4,889,028) (5,336,228) Net realized gain (loss) on investments and foreign currency transactions 73,956,697 17,148,448 (89,710,944) Net change in unrealized appreciation/depreciation on investments, foreign currency translations and foreign capital gains tax 12,544,784 179,938,855 (104,900,709) -------------- -------------- ------------ Net increase (decrease) resulting from operations 82,609,609 192,198,275 (199,947,881) - --------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A -- -- -- Class B -- -- -- Class D -- -- -- Class Z -- -- -- Return of capital: Class Z -- -- -- -------------- -------------- ------------ Total distributions to shareholders -- -- -- - -------------------------------------------------------------------------------------------------------- NET CAPITAL SHARE TRANSACTIONS (51,453,393) 7,917,882 252,934,343 -------------- -------------- ------------ REDEMPTION FEES -- -- -- -------------- -------------- ------------ Net increase (decrease) in net assets 31,156,216 200,116,157 52,986,462 - -------------------------------------------------------------------------------------------------------- NET ASSETS: Beginning of period 1,039,173,853 839,057,696 786,071,234 End of period 1,070,330,069 1,039,173,853 839,057,696 -------------- -------------- ------------ Undistributed (overdistributed) net investment income at end of period -- -- -- Accumulated net investment loss at end of period (3,894,057) (2,185) (3,410)
SMALL CAP GROWTH FUND -------------------------------------------- (UNAUDITED) SIX MONTHS PERIOD YEAR ENDED ENDED ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, INCREASE (DECREASE) IN NET ASSETS: 2004 ($) 2003 (b)($) 2002 ($) - ----------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) (3,833,316) (3,758,177) (5,349,560) Net realized gain (loss) on investments and foreign currency transactions 88,360,265 29,590,977 (116,601,064) Net change in unrealized appreciation/depreciation on investments, foreign currency translations and foreign capital gains tax 13,696,464 124,510,064 (70,989,821) ------------ ------------ ------------ Net increase (decrease) resulting from operations 98,223,413 150,342,864 (192,940,445) - ----------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A -- -- -- Class B -- -- -- Class D -- -- -- Class Z -- -- -- Return of capital: Class Z -- -- -- ------------ ------------ ------------ Total distributions to shareholders -- -- -- - ---------------------------------------------------------------------------------------------------- NET CAPITAL SHARE TRANSACTIONS 48,205,821 (5,758,359) 68,005,564 ------------ ------------ ------------ REDEMPTION FEES -- -- -- ------------ ------------ ------------ Net increase (decrease) in net assets 146,429,234 144,584,505 (124,934,881) - ---------------------------------------------------------------------------------------------------- NET ASSETS: Beginning of period 637,615,573 493,031,068 617,965,949 End of period 784,044,807 637,615,573 493,031,068 ------------ ------------ ------------ Undistributed (overdistributed) net investment income at end of period -- 180,997 180,997 Accumulated net investment loss at end of period (3,652,319) -- --
(a) Class C shares were initially offered on October 13, 2003. (b) The Fund changed its fiscal year end from December 31 to August 31. (c) 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 renamed Class Z shares. (d) 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 renamed Class Z shares. (e) 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 renamed Class Z shares. See Accompanying Notes to Financial Statements. 114-115 Spread STATEMENTS OF CHANGES IN NET ASSETS_____________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
REAL ESTATE EQUITY FUND ---------------------------------------------- (UNAUDITED) SIX MONTHS PERIOD YEAR ENDED ENDED ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, INCREASE (DECREASE) IN NET ASSETS: 2004 (a)($) 2003 (b)($) 2002 (c)($) - --------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) 20,440,979 16,618,449 33,395,460 Net realized gain (loss) on investments, foreign currency transactions and futures contracts 10,157,402 8,176,522 (12,684,181) Net change in unrealized appreciation/depreciation on investments, foreign currency translations and futures contracts 145,498,133 124,974,925 (5,589,540) -------------- ------------ ------------ Net increase (decrease) resulting from operations 176,096,514 149,769,896 15,121,739 - --------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A (355,289) (64,007) (11,804) Class B (77,449) (26,629) (12,009) Class C (2,154) -- -- Class D (54,362) (18,629) (4,519) Class G -- -- -- Class T -- -- -- Class Z (16,762,574) (11,791,170) (29,889,702) From net realized gains: Class A (177,644) -- -- Class B (51,632) -- -- Class C (3,877) -- -- Class D (34,947) -- -- Class Z (7,543,158) -- -- Return of capital: Class Z -- -- (3,915,328) -------------- ------------ ------------ Total distributions to shareholders (25,063,086) (11,900,435) (33,833,362) - --------------------------------------------------------------------------------------------------------- NET CAPITAL SHARE TRANSACTIONS 31,588,760 (9,506,449) 174,112,297 -------------- ------------ ------------ Net increase (decrease) in net assets 182,622,188 128,363,012 155,400,674 - --------------------------------------------------------------------------------------------------------- NET ASSETS: Beginning of period 905,353,520 776,990,508 621,589,834 End of period 1,087,975,708 905,353,520 776,990,508 -------------- ------------ ------------ Undistributed (overdistributed) net investment income at end of period 7,907,165 4,718,014 5,750,071 Accumulated net investment loss at end of period -- -- --
TECHNOLOGY FUND -------------------------------------------- (UNAUDITED) SIX MONTHS PERIOD YEAR ENDED ENDED ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, INCREASE (DECREASE) IN NET ASSETS: 2004 (a)($) 2003 (b)($) 2002 (C)($) - -------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) (262,555) (97,458) (122,568) Net realized gain (loss) on investments, foreign currency transactions and futures contracts 4,980,101 3,262,715 (4,188,861) Net change in unrealized appreciation/depreciation on investments, foreign currency translations and futures contracts 1,726,947 2,813,873 (748,526) ----------- ----------- ----------- Net increase (decrease) resulting from operations 6,444,493 5,979,130 (5,059,955) - ----------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A -- -- -- Class B -- -- -- Class C -- -- -- Class D -- -- -- Class G -- -- -- Class T -- -- -- Class Z -- -- -- From net realized gains: Class A -- -- -- Class B -- -- -- Class C -- -- -- Class D -- -- -- Class Z -- -- -- Return of capital: Class Z -- -- -- ----------- ----------- ----------- Total distributions to shareholders -- -- -- - ---------------------------------------------------------------------------------------------------- NET CAPITAL SHARE TRANSACTIONS 12,572,189 7,256,837 2,738,412 ----------- ----------- ----------- Net increase (decrease) in net assets 19,016,682 13,235,967 (2,321,543) - ---------------------------------------------------------------------------------------------------- NET ASSETS: Beginning of period 21,299,487 8,063,520 10,385,063 End of period 40,316,169 21,299,487 8,063,520 ----------- ----------- ----------- Undistributed (overdistributed) net investment income at end of period -- -- -- Accumulated net investment loss at end of period (262,555) -- --
STRATEGIC INVESTOR FUND -------------------------------------------- (UNAUDITED) SIX MONTHS PERIOD YEAR ENDED ENDED ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, INCREASE (DECREASE) IN NET ASSETS: 2004 (a)($) 2003 (b)($) 2002 (c)($) - ------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) 466,037 1,290,099 1,880,227 Net realized gain (loss) on investments, foreign currency transactions and futures contracts 24,396,470 1,254,211 (27,776,780) Net change in unrealized appreciation/depreciation on investments, foreign currency translations and futures contracts 24,975,188 47,457,001 (13,657,887) ------------ ------------ ------------ Net increase (decrease) resulting from operations 49,837,695 50,001,311 (39,554,440) - ------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A (258,188) -- -- Class B -- -- -- Class C -- -- -- Class D -- -- -- Class G -- -- -- Class T -- -- -- Class Z (1,487,644) -- (1,839,312) From net realized gains: Class A -- -- -- Class B -- -- -- Class C -- -- -- Class D -- -- -- Class Z -- -- (376,144) Return of capital: Class Z -- -- -- ------------ ------------ ------------ Total distributions to shareholders (1,745,832) -- (2,215,456) - ------------------------------------------------------------------------------------------------------- NET CAPITAL SHARE TRANSACTIONS 6,741,340 (24,174,510) 168,107,411 ------------ ------------ ------------ Net increase (decrease) in net assets 54,833,203 25,826,801 126,337,515 - ------------------------------------------------------------------------------------------------------- NET ASSETS: Beginning of period 291,668,021 265,841,220 139,503,705 End of period 346,501,224 291,668,021 265,841,220 ------------ ------------ ------------ Undistributed (overdistributed) net investment income at end of period 74,642 1,354,437 62,338 Accumulated net investment loss at end of period -- -- --
BALANCED FUND -------------------------------------------- (UNAUDITED) SIX MONTHS PERIOD YEAR ENDED ENDED ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, INCREASE (DECREASE) IN NET ASSETS: 2004 (a)($) 2003 (b)($) 2002 (c)($) - ------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) 5,626,673 8,623,814 20,794,186 Net realized gain (loss) on investments, foreign currency transactions and futures contracts 49,063,311 (2,740,428) (71,176,504) Net change in unrealized appreciation/depreciation on investments, foreign currency translations and futures contracts 5,984,289 58,617,792 (68,893,518) ------------ ------------ ------------ Net increase (decrease) resulting from operations 60,674,273 64,501,178 (119,275,836) - ------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A (6,557) (2,855) (693) Class B (12,633) (8,639) (2,254) Class C (576) -- -- Class D (2,553) (2,920) (1,798) Class G -- -- -- Class T -- -- -- Class Z (5,925,889) (6,954,163) (21,201,650) From net realized gains: Class A -- -- -- Class B -- -- -- Class C -- -- -- Class D -- -- -- Class Z -- -- -- Return of capital: Class Z -- -- -- ------------ ------------ ------------ Total distributions to shareholders (5,948,208) (6,968,577) (21,206,395) - ------------------------------------------------------------------------------------------------------- NET CAPITAL SHARE TRANSACTIONS (77,832,268) (81,831,327) (173,776,980) ------------ ------------ ------------ Net increase (decrease) in net assets (23,106,203) (24,298,726) (314,259,211) - ------------------------------------------------------------------------------------------------------- NET ASSETS: Beginning of period 645,191,357 669,490,083 983,749,294 End of period 622,085,154 645,191,357 669,490,083 ------------ ------------ ------------ Undistributed (overdistributed) net investment income at end of period 1,300,714 1,622,249 (355,183) Accumulated net investment loss at end of period -- -- --
SHORT TERM BOND FUND -------------------------------------------- (UNAUDITED) SIX MONTHS PERIOD YEAR ENDED ENDED ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, 2004 (a)($) 2003 (b)($) 2002 (d)($) - ------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income (loss) 5,618,655 7,314,353 3,936,510 Net realized gain (loss) on investments, foreign currency transactions and futures contracts 581,807 1,411,670 (5,253) Net change in unrealized appreciation/depreciation on investments, foreign currency translations and futures contracts 4,307,605 (5,882,484) 2,802,185 ------------ ------------ ------------ Net increase (decrease) resulting from operations 10,508,067 2,843,539 6,733,442 - ------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A (285,984) (300,551) (7,886) Class B (146,576) (163,965) (6,548) Class C (7,165) -- -- Class D (156,456) (153,332) (9,865) Class G (9,597) (19,560) (2,198) Class T (264,414) (449,409) (48,546) Class Z (4,672,599) (6,343,155) (3,843,068) From net realized gains: Class A -- -- -- Class B -- -- -- Class C -- -- -- Class D -- -- -- Class Z -- -- (18,783) Return of capital: Class Z -- -- -- ------------ ------------ ------------ Total distributions to shareholders (5,542,791) (7,429,972) (3,936,894) - ------------------------------------------------------------------------------------------------------- NET CAPITAL SHARE TRANSACTIONS (10,657,082) 186,414,680 301,621,677 ------------ ------------ ------------ Net increase (decrease) in net assets (5,691,806) 181,828,247 304,418,225 - ------------------------------------------------------------------------------------------------------- NET ASSETS: Beginning of period 549,176,077 367,347,830 62,929,605 End of period 543,484,271 549,176,077 367,347,830 ------------ ------------ ------------ Undistributed (overdistributed) net investment income at end of period 81,538 5,674 (204,761) Accumulated net investment loss at end of period -- -- --
(a) Class C shares were initially offered on October 13, 2003. (b) The Fund changed its fiscal year end from December 31 to August 31. (c) 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 renamed 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 renamed Class Z shares. See Accompanying Notes to Financial Statements. 116-117 Spread STATEMENTS OF CHANGES IN NET ASSETS_____________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
FIXED INCOME SECURITIES FUND -------------------------------------------- (UNAUDITED) SIX MONTHS PERIOD YEAR ENDED ENDED ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, INCREASE (DECREASE) IN NET ASSETS: 2004 (a)($) 2003 (b)($) 2002 (c)($) - ------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income 9,181,985 13,690,036 24,670,569 Net realized gain (loss) on investments 4,469,498 9,807,289 (2,558,516) Net change in unrealized appreciation/depreciation on investments 6,446,913 (17,070,804) 14,601,556 ------------ ------------ ------------ Net increase resulting from operations 20,098,396 6,426,521 36,713,609 - ------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A (156,602) (81,788) (1,157) Class B (68,765) (56,382) (2,638) Class C (832) -- -- Class D (39,878) (34,961) (1,013) Class Z (9,386,455) (14,154,256) (25,339,044) From net realized gains: Class A -- -- -- Class B -- -- -- Class C -- -- -- Class D -- -- -- Class Z -- -- -- ------------ ------------ ------------ Total distributions to shareholders (9,652,532) (14,327,387) (25,343,852) - ------------------------------------------------------------------------------------------------------- NET CAPITAL SHARE TRANSACTIONS (125,560,130) (21,870,137) 73,248,344 ------------ ------------ ------------ Net increase (decrease) in net assets (115,114,266) (29,771,003) 84,618,101 - ------------------------------------------------------------------------------------------------------- NET ASSETS: Beginning of period 520,590,597 550,361,600 465,743,499 End of period 405,476,331 520,590,597 550,361,600 ------------ ------------ ------------ Undistributed (overdistributed) net investment income at end of period (1,230,558) (760,011) (885,594)
NATIONAL MUNICIPAL BOND FUND ------------------------------------------- (UNAUDITED) SIX MONTHS PERIOD YEAR ENDED ENDED ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, INCREASE (DECREASE) IN NET ASSETS: 2004 (a)($) 2003 (b)($) 2002 (c)($) - ------------------------------------------------------------------------------------------------------ OPERATIONS: Net investment income 288,362 430,023 603,412 Net realized gain (loss) on investments 101,566 56,187 88,597 Net change in unrealized appreciation/depreciation on investments 588,784 (330,997) 631,224 ------------ ----------- ------------ Net increase resulting from operations 978,712 155,213 1,323,233 - ------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A (10,954) (6,156) (200) Class B (9,525) (7,532) (232) Class C (7,655) -- -- Class D (7,520) (5,576) (147) Class Z (252,086) (413,051) (598,784) From net realized gains: Class A (6,106) (310) (230) Class B (5,641) (477) (784) Class C (6,127) -- -- Class D (3,786) (337) (220) Class Z (98,282) (12,706) (66,172) ------------ ----------- ------------ Total distributions to shareholders (407,682) (446,145) (666,769) - ------------------------------------------------------------------------------------------------------ NET CAPITAL SHARE TRANSACTIONS (298,022) (584,781) 2,233,945 ------------ ----------- ------------ Net increase (decrease) in net assets 273,008 (875,713) 2,890,409 - ------------------------------------------------------------------------------------------------------ NET ASSETS: Beginning of period 15,783,542 16,659,255 13,768,846 End of period 16,056,550 15,783,542 16,659,255 ------------ ----------- ------------ Undistributed (overdistributed) net investment income at end of period 3,206 2,584 4,896
OREGON MUNICIPAL BOND FUND -------------------------------------------- (UNAUDITED) SIX MONTHS PERIOD YEAR ENDED ENDED ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, INCREASE (DECREASE) IN NET ASSETS: 2004 (a)($) 2003 (b)($) 2002 (c)($) - ------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income 9,794,964 14,184,403 22,413,341 Net realized gain (loss) on investments 2,274,158 3,354,784 3,932,577 Net change in unrealized appreciation/depreciation on investments 19,157,214 (13,131,352) 17,775,246 ------------ ------------ ------------ Net increase resulting from operations 31,226,336 4,407,835 44,121,164 - ------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A (44,532) (24,517) (932) Class B (18,578) (14,008) (1,094) Class C (651) -- -- Class D (13,330) (15,469) (1,673) Class Z (9,702,874) (14,116,676) (22,348,370) From net realized gains: Class A (28,393) (1,127) (1,987) Class B (15,169) (532) (2,513) Class C (702) -- -- Class D (9,045) (496) (2,990) Class Z (5,411,624) (299,094) (5,015,648) ------------ ------------ ------------ Total distributions to shareholders (15,244,898) (14,471,919) (27,375,207) - ------------------------------------------------------------------------------------------------------- NET CAPITAL SHARE TRANSACTIONS (18,880,470) (10,834,612) 1,779,138 ------------ ------------ ------------ Net increase (decrease) in net assets (2,899,032) (20,898,696) 18,525,095 - ------------------------------------------------------------------------------------------------------- NET ASSETS: Beginning of period 489,264,272 510,162,968 491,637,873 End of period 486,365,240 489,264,272 510,162,968 ------------ ------------ ------------ Undistributed (overdistributed) net investment income at end of period 156,547 141,548 131,976
HIGH YIELD FUND ------------------------------------------------ (UNAUDITED) SIX MONTHS PERIOD YEAR ENDED ENDED ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, INCREASE (DECREASE) IN NET ASSETS: 2004 (a)($) 2003 (b)($) 2002 (c)($) - ----------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income 50,939,037 50,179,150 29,377,465 Net realized gain (loss) on investments 7,138,103 2,667,555 (27,771,338) Net change in unrealized appreciation/depreciation on investments 51,523,061 7,100,037 9,777,957 -------------- -------------- ------------ Net increase resulting from operations 109,600,201 59,946,742 11,384,084 - ----------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A (7,281,794) (4,682,562) (111,753) Class B (2,646,504) (2,122,494) (63,166) Class C (130,142) -- -- Class D (2,989,217) (2,591,969) (57,867) Class Z (41,791,468) (44,079,371) (30,110,118) From net realized gains: Class A -- -- -- Class B -- -- -- Class C -- -- -- Class D -- -- -- Class Z -- -- -- -------------- -------------- ------------ Total distributions to shareholders (54,839,125) (53,476,396) (30,342,904) - ----------------------------------------------------------------------------------------------------------- NET CAPITAL SHARE TRANSACTIONS 239,105,798 806,131,939 551,477,756 -------------- -------------- ------------ Net increase (decrease) in net assets 293,866,874 812,602,285 532,518,936 - ----------------------------------------------------------------------------------------------------------- NET ASSETS: Beginning of period 1,584,115,062 771,512,777 238,993,841 End of period 1,877,981,936 1,584,115,062 771,512,777 -------------- -------------- ------------ Undistributed (overdistributed) net investment income at end of period (7,643,402) (3,743,314) (989,027)
DAILY INCOME COMPANY ------------------------------------------------ (UNAUDITED) SIX MONTHS PERIOD YEAR ENDED ENDED ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, INCREASE (DECREASE) IN NET ASSETS: 2004($) 2003 (b)($) 2002 ($) - ----------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income 1,421,492 3,560,546 14,142,055 Net realized gain (loss) on investments -- -- -- Net change in unrealized appreciation/depreciation on investments -- -- -- ------------ -------------- -------------- Net increase resulting from operations 1,421,492 3,560,546 14,142,055 - ----------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Class A -- -- -- Class B -- -- -- Class C -- -- -- Class D -- -- -- Class Z (1,421,492) (3,560,546) (14,142,055) From net realized gains: Class A -- -- -- Class B -- -- -- Class C -- -- -- Class D -- -- -- Class Z -- -- -- ------------ -------------- -------------- Total distributions to shareholders (1,421,492) (3,560,546) (14,142,055) - ----------------------------------------------------------------------------------------------------------- NET CAPITAL SHARE TRANSACTIONS (148,461,758) (237,911,017) (117,460,299) ------------ -------------- -------------- Net increase (decrease) in net assets (148,461,758) (237,911,017) (117,460,299) - ----------------------------------------------------------------------------------------------------------- NET ASSETS: Beginning of period 898,163,881 1,136,074,898 1,253,535,197 End of period 749,702,123 898,163,881 1,136,074,898 ------------ -------------- -------------- Undistributed (overdistributed) net investment income at end of period -- -- --
(a) Class C shares were initially offered on October 13, 2003. (b) The Fund changed its fiscal year end from December 31 to August 31. (c) 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 renamed Class Z shares. See Accompanying Notes to Financial Statements. 118-119 Spread STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY____________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
COMMON STOCK FUND ---------------------------------------------------------------------------------- (UNAUDITED) SIX MONTHS ENDED PERIOD ENDED YEAR ENDED FEBRUARY 29, 2004 (a) AUGUST 31, 2003 (b) DECEMBER 31, 2002 (c) ------------------------- ------------------------- -------------------------- SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($) - ---------------------------------------------------------------------------------------------------------------------------------- CLASS A: Subscriptions 29,529 545,798 10,945 170,123 2,138 31,961 Proceeds received in connection with merger -- -- -- -- -- -- Distributions reinvested 36 655 -- -- 2 24 Redemptions (4,958) (93,468) (117) (1,878) -- -- ---------- ------------ ---------- ------------ ----------- ------------ Net increase 24,607 452,985 10,828 168,245 2,140 31,985 CLASS B: Subscriptions 81,012 1,480,218 36,205 551,074 7,642 117,918 Distributions reinvested -- -- -- -- 25 365 Redemptions (17,148) (313,452) (7,327) (107,471) (328) (5,120) ---------- ------------ ---------- ------------ ----------- ------------ Net increase 63,864 1,166,766 28,878 443,603 7,339 113,163 CLASS C: Subscriptions 8,474 154,614 -- -- -- -- Redemptions (5,960) (113,868) -- -- -- -- ---------- ------------ ---------- ------------ ----------- ------------ Net increase 2,514 40,746 -- -- -- -- CLASS D: Subscriptions 1,445 24,548 16,394 259,863 2,972 46,518 Distributions reinvested -- -- -- -- 7 105 Redemptions (81) (1,528) (11,846) (192,430) (968) (14,682) ---------- ------------ ---------- ------------ ----------- ------------ Net increase (decrease) 1,364 23,020 4,548 67,433 2,011 31,941 CLASS G: Subscriptions -- -- -- -- -- -- Proceeds received in connection with merger -- -- -- -- -- -- Redemptions -- -- -- -- -- -- ---------- ------------ ---------- ------------ ----------- ------------ Net increase (decrease) -- -- -- -- -- -- CLASS Z: Subscriptions 1,861,410 34,215,864 3,346,207 52,008,289 7,624,871 129,705,574* Proceeds received in connection with merger -- -- -- -- -- -- Distributions reinvested 124,008 2,261,905 -- -- 153,392 2,267,130 Redemptions (5,493,078) (100,718,760) (6,523,031) (102,375,697) (13,944,732) (232,525,563) ---------- ------------ ---------- ------------ ----------- ------------ Net decrease (3,507,660) (64,240,991) (3,176,824) (50,367,408) (6,166,469) (100,552,859)
GROWTH FUND ---------------------------------------------------------------------------------- (UNAUDITED) SIX MONTHS ENDED PERIOD ENDED YEAR ENDED FEBRUARY 29, 2004 (a) AUGUST 31, 2003 (b) DECEMBER 31, 2002 (d) ------------------------- ------------------------- -------------------------- SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($) - ---------------------------------------------------------------------------------------------------------------------------------- CLASS A: Subscriptions 44,722 1,157,299 50,514 1,127,877 6,415 135,724 Proceeds received in connection with merger -- -- -- -- 142,906 3,133,045 Distributions reinvested -- -- -- -- -- -- Redemptions (17,907) (463,735) (26,317) (600,530) (1,651) (35,026) ---------- ------------ ---------- ------------ ----------- ------------ Net increase 26,815 693,564 24,197 527,347 147,670 3,233,743 CLASS B: Subscriptions 48,434 1,239,802 31,960 722,252 5,492 119,511 Distributions reinvested -- -- -- -- -- -- Redemptions (2,443) (62,346) (5,060) (113,169) -- -- ---------- ------------ ---------- ------------ ----------- ------------ Net increase 45,991 1,177,456 26,900 609,083 5,492 119,511 CLASS C: Subscriptions 8,232 210,674 -- -- -- -- Redemptions (4,536) (117,607) -- -- -- -- ---------- ------------ ---------- ------------ ----------- ------------ Net increase 3,696 93,067 -- -- -- -- CLASS D: Subscriptions 4,808 117,607 13,491 309,866 4,966 105,516 Distributions reinvested -- -- -- -- -- -- Redemptions (5,771) (142,663) (6,462) (148,435) -- -- ---------- ------------ ---------- ------------ ----------- ------------ Net increase (decrease) (963) (25,056) 7,029 161,431 4,966 105,516 CLASS G: Subscriptions 2,442 62,372 5,008 110,114 780 16,449 Proceeds received in connection with merger -- -- -- -- 668,443 14,636,657 Redemptions (35,180) (903,091) (58,288) (1,271,125) (11,143) (235,662) ---------- ------------ ---------- ------------ ----------- ------------ Net increase (decrease) (32,738) (840,719) (53,280) (1,161,011) 658,080 14,417,444 CLASS Z: Subscriptions 2,540,421 65,695,157 3,770,779 84,770,150 6,673,385 165,334,435 Proceeds received in connection with merger -- -- -- -- 4,131,819 90,545,496 Distributions reinvested -- -- -- -- 100 2,235 Redemptions (4,680,162) (121,429,440) (5,869,216) (128,773,493) (14,167,826) (346,428,134) ---------- ------------ ---------- ------------ ----------- ------------ Net decrease (2,139,741) (55,734,283) (2,098,437) (44,003,343) (3,362,522) (90,545,968)
* Includes $4,174 of securities received in an in-kind transfer. (a) Class C shares were initially offered on October 13, 2003. (b) The Fund changed its fiscal year end from December 31 to August 31. (c) Effective November 1, 2002, the Fund began offering four classes of shares: Class A, Class B, Class D and Class Z shares. Prior to November 1, 2002, the Fund was single class which, was subsequently renamed Class Z shares. (d) Effective November 1, 2002, the Fund began offering five classes of shares: Class A, Class B, Class D, Class G and Class Z shares. Prior to November 1, 2002, the Fund was single class, which was subsequently renamed Class Z shares. See Accompanying Notes to Financial Statements. 120-121 Spread STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY____________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
INTERNATIONAL STOCK FUND ---------------------------------------------------------------------------------- (UNAUDITED) SIX MONTHS ENDED PERIOD ENDED YEAR ENDED FEBRUARY 29, 2004 (a) AUGUST 31, 2003 (b) DECEMBER 31, 2002 (c) ------------------------- ------------------------- -------------------------- SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($) - ---------------------------------------------------------------------------------------------------------------------------------- CLASS A: Subscriptions 234,117 2,918,838 179,774 1,838,487 103,222 1,040,525 Proceeds received in connection with merger -- -- -- -- 2,026,408 20,243,813 Redemptions (264,340) (3,344,524) (278,832) (2,814,836) (120,925) (1,215,758) ----------- ----------- ---------- ------------ ----------- ------------ Net increase (decrease) (30,223) (425,686) (99,058) (976,349) 2,008,705 20,068,580 CLASS B: Subscriptions 155,191 1,976,057 117,506 1,216,734 49,073 492,261 Proceeds received in connection with merger -- -- -- -- 1,117,525 11,164,070 Redemptions (183,743) (2,318,261) (289,533) (2,950,070) (76,334) (768,135) ----------- ----------- ---------- ------------ ----------- ------------ Net increase (decrease) (28,552) (342,204) (172,027) (1,733,336) 1,090,264 10,888,196 CLASS C: Subscriptions 46,355 576,257 -- -- -- -- Redemptions (24,222) (317,127) -- -- -- -- ----------- ----------- ---------- ------------ ----------- ------------ Net increase 22,133 259,130 -- -- -- -- CLASS D: Subscriptions 5,774 71,910 67,591 669,176 16,230 162,310 Proceeds received in connection with merger -- -- -- -- 56,019 559,632 Redemptions (4,917) (61,689) (65,502) (642,271) (18,196) (181,537) ----------- ----------- ---------- ------------ ----------- ------------ Net increase 857 10,221 2,089 26,905 54,053 540,405 CLASS G: Subscriptions -- -- -- -- -- -- Proceeds received in connection with merger -- -- -- -- -- -- Redemptions -- -- -- -- -- -- ----------- ----------- ---------- ------------ ----------- ------------ Net increase (decrease) -- -- -- -- -- -- CLASS T: Subscriptions -- -- -- -- -- -- Proceeds received in connection with merger -- -- -- -- -- -- Redemptions -- -- -- -- -- -- ----------- ----------- ---------- ------------ ----------- ------------ Net increase (decrease) -- -- -- -- -- -- CLASS Z: Subscriptions 17,381,108 223,337,103 12,787,173 132,219,531 14,151,430 150,103,257 Proceeds received in connection with merger -- -- -- -- 1,426,094 14,246,687 Distributions reinvested 44,157 563,444 -- -- 48,107 478,672 Redemptions (2,731,474) (35,498,965) (5,233,439) (52,772,540) (12,634,316) (134,815,113) ----------- ----------- ---------- ------------ ----------- ------------ Net increase (decrease) 14,693,791 188,401,582 7,553,734 79,446,991 2,991,315 30,013,503
MID CAP GROWTH FUND ---------------------------------------------------------------------------------- (UNAUDITED) SIX MONTHS ENDED PERIOD ENDED YEAR ENDED FEBRUARY 29, 2004 (a) AUGUST 31, 2003 (b) DECEMBER 31, 2002 (d) ------------------------- -------------------------- -------------------------- SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($) - ----------------------------------------------------------------------------------------------------------------------------------- CLASS A: Subscriptions 186,468 3,462,168 389,366 6,472,166 15,672 237,394 Proceeds received in connection with merger -- -- -- -- 68,335 1,049,181 Redemptions (103,892) (1,901,652) (219,073) (3,745,690) (4,112) (61,507) ---------- ------------ ----------- ------------ ----------- ------------ Net increase (decrease) 82,576 1,560,516 170,293 2,726,476 79,895 1,225,068 CLASS B: Subscriptions 83,026 1,562,397 47,439 745,476 7,078 106,916 Proceeds received in connection with merger -- -- -- -- 230,587 3,540,022 Redemptions (20,537) (380,090) (40,673) (637,724) (8,494) (127,352) ---------- ------------ ----------- ------------ ----------- ------------ Net increase (decrease) 62,489 1,182,307 6,766 107,752 229,171 3,519,586 CLASS C: Subscriptions 16,108 306,691 -- -- -- -- Redemptions (2,456) (47,404) -- -- -- -- ---------- ------------ ----------- ------------ ----------- ------------ Net increase 13,652 259,287 -- -- -- -- CLASS D: Subscriptions 2,849 51,030 18,375 281,516 11,403 172,855 Proceeds received in connection with merger -- -- -- -- 18,373 282,040 Redemptions (2,389) (44,661) (6,698) (106,816) (431) (6,374) ---------- ------------ ----------- ------------ ----------- ------------ Net increase 460 6,369 11,677 174,700 29,345 448,521 CLASS G: Subscriptions 880 16,559 1,272 19,333 222 3,363 Proceeds received in connection with merger -- -- -- -- 51,696 794,054 Redemptions (3,805) (71,489) (7,460) (114,734) (913) (13,602) ---------- ------------ ----------- ------------ ----------- ------------ Net increase (decrease) (2,925) (54,930) (6,188) (95,401) 51,005 783,815 CLASS T: Subscriptions 15,804 297,720 22,853 357,740 1,181 17,735 Proceeds received in connection with merger -- -- -- -- 1,766,763 27,163,275 Redemptions (75,732) (1,436,236) (127,510) (2,002,189) (12,506) (187,071) ---------- ------------ ----------- ------------ ----------- ------------ Net increase (decrease) (59,928) (1,138,516) (104,657) (1,644,449) 1,755,438 26,993,939 CLASS Z: Subscriptions 3,636,814 68,652,950 15,558,486 243,718,260 23,256,300 377,870,023 Proceeds received in connection with merger -- -- -- -- 16,875,517 259,343,536 Distributions reinvested -- -- -- -- -- -- Redemptions (6,503,094) (121,921,376) (15,158,849) (237,069,456) (25,658,966) (417,250,145) ---------- ------------ ----------- ------------ ----------- ------------ Net increase (decrease) (2,866,280) (53,268,426) 399,637 6,648,804 14,472,851 219,963,414
(a) Class C shares were initially offered on October 13, 2003. (b) The Fund changed its fiscal year end from December 31 to August 31. (c) 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 renamed 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 renamed Class Z shares. See Accompanying Notes to Financial Statements. 122-123 Spread STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY____________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
SMALL CAP GROWTH FUND --------------------------------------------------------------------------------------- (UNAUDITED) SIX MONTHS ENDED PERIOD ENDED YEAR ENDED FEBRUARY 29, 2004 AUGUST 31, 2003 (a) DECEMBER 31, 2002 --------------------------- --------------------------- -------------------------- SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($) - ---------------------------------------------------------------------------------------------------------------------- CLASS A: Subscriptions -- -- -- -- -- -- Distributions reinvested -- -- -- -- -- -- Redemptions -- -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase -- -- -- -- -- -- CLASS B: Subscriptions -- -- -- -- -- -- Distributions reinvested -- -- -- -- -- -- Redemptions -- -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase -- -- -- -- -- -- CLASS C: Subscriptions -- -- -- -- -- -- Distributions reinvested -- -- -- -- -- -- Redemptions -- -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase -- -- -- -- -- -- CLASS D: Subscriptions -- -- -- -- -- -- Distributions reinvested -- -- -- -- -- -- Redemptions -- -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase -- -- -- -- -- -- CLASS Z: Subscriptions 7,226,432 169,172,240 8,361,804 154,165,644 19,739,178 396,004,404 Distributions reinvested -- -- -- -- -- -- Redemptions (5,137,238) (120,966,419) (9,108,258) (159,924,003) (17,331,161) (327,998,840) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) 2,089,194 48,205,821 (746,454) (5,758,359) 2,408,017 68,005,564
REAL ESTATE EQUITY FUND --------------------------------------------------------------------------------------- (UNAUDITED) SIX MONTHS ENDED PERIOD ENDED YEAR ENDED FEBRUARY 29, 2004 (b) AUGUST 31, 2003 (a) DECEMBER 31, 2002 (c) --------------------------- --------------------------- -------------------------- SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($) - ---------------------------------------------------------------------------------------------------------------------- CLASS A: Subscriptions 1,183,397 26,137,904 655,533 12,613,973 50,286 889,637 Distributions reinvested 21,395 479,334 2,966 56,728 614 10,830 Redemptions (283,274) (6,169,584) (121,571) (2,319,879) (41) (701) ------------ ------------ ------------ ------------ ------------ ------------ Net increase 921,518 20,447,654 536,928 10,350,822 50,859 899,766 CLASS B: Subscriptions 168,553 3,818,475 178,356 3,330,663 59,855 1,057,426 Distributions reinvested 4,006 89,245 860 16,519 426 7,526 Redemptions (30,561) (712,570) (12,411) (241,060) (27) (486) ------------ ------------ ------------ ------------ ------------ ------------ Net increase 141,998 3,195,150 166,805 3,106,122 60,254 1,064,466 CLASS C: Subscriptions 64,825 1,502,299 -- -- -- -- Distributions reinvested 254 5,799 -- -- -- -- Redemptions (2,847) (64,209) -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase 62,232 1,443,889 -- -- -- -- CLASS D: Subscriptions 41,057 886,947 147,439 2,763,824 20,247 355,423 Distributions reinvested 3,327 73,742 775 14,883 234 4,139 Redemptions (9,478) (214,418) (3,893) (76,027) -- -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase 34,906 746,271 144,321 2,702,680 20,481 359,562 CLASS Z: Subscriptions 10,166,835 228,829,365 19,396,080 358,557,734 33,091,005 607,721,107 Distributions reinvested 857,631 18,924,072 497,422 9,407,709 1,648,657 30,201,439 Redemptions (10,786,322) (241,997,641) (21,373,984) (393,631,516) (25,701,989) (466,134,043) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) 238,144 5,755,796 (1,480,482) (25,666,073) 9,037,673 171,788,503
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) Class C shares were initially offered on October 13, 2003. (c) 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 renamed Class Z shares. See Accompanying Notes to Financial Statements. 124-125 Spread STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY____________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
TECHNOLOGY FUND --------------------------------------------------------------------------------- (UNAUDITED) SIX MONTHS ENDED PERIOD ENDED YEAR ENDED FEBRUARY 29, 2004 (a) AUGUST 31, 2003 (b) DECEMBER 31, 2002 (c) ------------------------- ------------------------- ------------------------- SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($) - --------------------------------------------------------------------------------------------------------------------------------- CLASS A: Subscriptions 309,091 2,158,753 170,882 795,971 266 1,013 Proceeds received in connection with merger -- -- -- -- -- -- Distributions reinvested -- -- -- -- -- -- Redemptions (123,527) (877,518) (107,548) (503,942) -- -- ----------- ----------- ----------- ----------- ----------- ----------- Net increase (decrease) 185,564 1,281,235 63,334 292,029 266 1,013 CLASS B: Subscriptions 384,571 2,636,093 256,020 1,267,177 1,777 6,709 Proceeds received in connection with merger -- -- -- -- -- -- Redemptions (155,588) (1,064,227) (45,189) (239,637) -- -- ----------- ----------- ----------- ----------- ----------- ----------- Net increase 228,983 1,571,866 210,831 1,027,540 1,777 6,709 CLASS C: Subscriptions 45,448 322,844 -- -- -- -- Distributions reinvested -- -- -- -- -- -- Redemptions (13,904) (99,776) -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- Net increase 31,544 223,068 -- -- -- -- CLASS D: Subscriptions 7,527 46,830 24,865 123,446 263 1,000 Proceeds received in connection with merger -- -- -- -- -- -- Redemptions (4,359) (30,474) (22,619) (115,105) -- -- ----------- ----------- ----------- ----------- ----------- ----------- Net increase (decrease) 3,168 16,356 2,246 8,341 263 1,000 CLASS Z: Subscriptions 3,434,345 23,735,771 4,006,292 18,434,013 2,055,133 10,220,887 Proceeds received in connection with merger -- -- -- -- -- -- Distributions reinvested -- -- -- -- -- -- Redemptions (2,020,229) (14,256,107) (2,819,286) (12,505,086) (1,621,025) (7,491,197) ----------- ----------- ----------- ----------- ----------- ----------- Net increase (decrease) 1,414,116 9,479,664 1,187,006 5,928,927 434,108 2,729,690
STRATEGIC INVESTOR FUND --------------------------------------------------------------------------------- (UNAUDITED) SIX MONTHS ENDED PERIOD ENDED YEAR ENDED FEBRUARY 29, 2004 (a) AUGUST 31, 2003 (b) DECEMBER 31, 2002 (c) ------------------------- ------------------------- ------------------------- SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($) - --------------------------------------------------------------------------------------------------------------------------------- CLASS A: Subscriptions 486,612 8,727,538 75,306 1,062,103 16,466 220,586 Proceeds received in connection with merger -- -- -- -- 4,196,653 54,514,520 Distributions reinvested 13,874 239,722 -- -- -- -- Redemptions (284,621) (4,876,750) (383,804) (5,265,019) (135,115) (1,789,207) ----------- ----------- ----------- ----------- ----------- ----------- Net increase (decrease) 215,865 4,090,510 (308,498) (4,202,916) 4,078,004 52,945,899 CLASS B: Subscriptions 268,214 4,789,194 63,797 901,976 23,766 316,907 Proceeds received in connection with merger -- -- -- -- 163,845 2,128,341 Redemptions (22,282) (386,099) (28,440) (390,511) (8,208) (108,351) ----------- ----------- ----------- ----------- ----------- ----------- Net increase 245,932 4,403,095 35,357 511,465 179,403 2,336,897 CLASS C: Subscriptions 171,165 3,117,326 -- -- -- -- Distributions reinvested -- -- -- -- -- -- Redemptions (766) (13,671) -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- Net increase 170,399 3,103,655 -- -- -- -- CLASS D: Subscriptions 683 11,781 27,649 397,532 1,170 15,708 Proceeds received in connection with merger -- -- -- -- 27,645 359,105 Redemptions (792) (13,404) (10,199) (149,190) (1,702) (22,407) ----------- ----------- ----------- ----------- ----------- ----------- Net increase (decrease) (109) (1,623) 17,450 248,342 27,113 352,406 CLASS Z: Subscriptions 2,608,875 45,231,774 5,892,671 84,681,724 24,026,235 352,586,497 Proceeds received in connection with merger -- -- -- -- 180,824 2,348,913 Distributions reinvested 85,074 1,470,072 -- -- 171,442 2,187,604 Redemptions (2,985,436) (51,556,143) (7,620,153) (105,413,125) (18,027,370) (244,650,805) ----------- ----------- ----------- ----------- ----------- ----------- Net increase (decrease) (291,487) (4,854,297) (1,727,482) (20,731,401) 6,351,131 112,472,209
(a) Class C shares were initially offered on October 13, 2003. (b) The Fund changed its fiscal year end from December 31 to August 31. (c) 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 renamed Class Z shares. See Accompanying Notes to Financial Statements. 126-127 Spread STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY____________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
BALANCED FUND ---------------------------------------------------------------------------------- (UNAUDITED) SIX MONTHS ENDED PERIOD ENDED YEAR ENDED FEBRUARY 29, 2004 (a) AUGUST 31, 2003 (b) DECEMBER 31, 2002 (c) ------------------------- ------------------------- -------------------------- SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($) - ---------------------------------------------------------------------------------------------------------------------------------- CLASS A: Subscriptions 64,004 1,297,673 33,607 621,075 8,288 147,819 Distributions reinvested 323 6,364 155 2,818 38 668 Redemptions (6,239) (127,763) (7,153) (133,619) (1) (20) ---------- ------------ ---------- ------------ ----------- ------------ Net increase (decrease) 58,088 1,176,274 26,609 490,274 8,325 148,467 CLASS B: Subscriptions 120,860 2,418,386 157,057 2,842,073 34,842 622,186 Distributions reinvested 541 10,710 424 7,724 118 2,064 Redemptions (20,811) (418,931) (17,361) (311,808) (285) (5,115) ---------- ------------ ---------- ------------ ----------- ------------ Net increase (decrease) 100,590 2,010,165 140,120 2,537,989 34,675 619,135 CLASS C: Subscriptions 25,290 511,114 -- -- -- -- Distributions reinvested 29 576 -- -- -- -- Redemptions (79) (1,621) -- -- -- -- ---------- ------------ ---------- ------------ ----------- ------------ Net increase 25,240 510,069 -- -- -- -- CLASS D: Subscriptions 7,246 139,722 27,277 487,690 25,391 456,181 Distributions reinvested 122 2,391 152 2,764 100 1,738 Redemptions (22,678) (456,969) (12,719) (224,597) -- -- ---------- ------------ ---------- ------------ ----------- ------------ Net increase (decrease) (15,310) (314,856) 14,710 265,857 25,491 457,919 CLASS G: Subscriptions -- -- -- -- -- -- Proceeds received in connection with merger -- -- -- -- -- -- Distributions reinvested -- -- -- -- -- -- Redemptions -- -- -- -- -- -- ---------- ------------ ---------- ------------ ----------- ------------ Net increase (decrease) -- -- -- -- -- -- CLASS T: Subscriptions -- -- -- -- -- -- Proceeds received in connection with merger -- -- -- -- -- -- Distributions reinvested -- -- -- -- -- -- Redemptions -- -- -- -- -- -- ---------- ------------ ---------- ------------ ----------- ------------ Net increase (decrease) -- -- -- -- -- -- CLASS Z: Subscriptions 2,180,756 43,652,972 3,932,560 71,002,827 6,801,092 129,567,321 Proceeds received in connection with merger -- -- -- -- -- -- Distributions reinvested 299,555 5,861,788 379,248 6,864,708 1,137,024 20,929,510 Redemptions (6,511,533) (130,728,680) (9,102,129) (162,992,982) (17,367,916) (325,499,332) ---------- ------------ ---------- ------------ ----------- ------------ Net increase (decrease) (4,031,222) (81,213,920) (4,790,321) (85,125,447) (9,429,800) (175,002,501)
SHORT TERM BOND FUND ---------------------------------------------------------------------------------- (UNAUDITED) SIX MONTHS ENDED PERIOD ENDED YEAR ENDED FEBRUARY 29, 2004 (a) AUGUST 31, 2003 (b) DECEMBER 31, 2002 (d) -------------------------- -------------------------- ------------------------- SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($) - ----------------------------------------------------------------------------------------------------------------------------------- CLASS A: Subscriptions 1,549,245 13,437,522 4,593,712 40,026,783 648,705 5,597,578 Distributions reinvested 27,668 240,118 23,346 203,076 712 6,168 Redemptions (2,288,929) (19,842,515) (935,142) (8,119,243) (10,279) (88,636) ----------- ------------ ----------- ------------ ----------- ----------- Net increase (decrease) (712,016) (6,164,875) 3,681,916 32,110,616 639,138 5,515,110 CLASS B: Subscriptions 457,905 3,969,651 2,912,411 25,355,903 724,659 6,252,006 Distributions reinvested 13,518 117,322 15,236 132,630 571 4,943 Redemptions (759,805) (6,588,588) (522,269) (4,540,064) (3,436) (29,668) ----------- ------------ ----------- ------------ ----------- ----------- Net increase (decrease) (288,382) (2,501,615) 2,405,378 20,948,469 721,794 6,227,281 CLASS C: Subscriptions 247,154 2,142,584 -- -- -- -- Distributions reinvested 670 5,819 -- -- -- -- Redemptions (34,150) (295,617) -- -- -- -- ----------- ------------ ----------- ------------ ----------- ----------- Net increase 213,674 1,852,786 -- -- -- -- CLASS D: Subscriptions 179,410 1,555,665 1,835,008 15,983,699 630,014 5,435,948 Distributions reinvested 14,528 126,063 15,226 132,466 1,027 8,883 Redemptions (511,619) (4,437,759) (305,609) (2,657,104) (28,832) (248,791) ----------- ------------ ----------- ------------ ----------- ----------- Net increase (decrease) (317,681) (2,756,031) 1,544,625 13,459,061 602,209 5,196,040 CLASS G: Subscriptions 484 4,199 19,116 168,060 8,127 69,466 Proceeds received in connection with merger -- -- -- -- 208,508 1,797,110 Distributions reinvested 1,079 9,365 2,089 18,273 235 2,041 Redemptions (41,130) (356,783) (50,125) (437,235) (730) (6,301) ----------- ------------ ----------- ------------ ----------- ----------- Net increase (decrease) (39,567) (343,219) (28,920) (250,902) 216,140 1,862,316 CLASS T: Subscriptions 22,680 196,744 364,019 3,195,681 63,115 544,886 Proceeds received in connection with merger -- -- -- -- 3,594,178 30,982,225 Distributions reinvested 26,764 232,265 45,992 397,049 5,002 43,369 Redemptions (363,076) (3,147,503) (694,581) (6,031,954) (104,000) (898,480) ----------- ------------ ----------- ------------ ----------- ----------- Net increase (decrease) (313,632) (2,718,494) (284,570) (2,439,224) 3,558,295 30,672,000 CLASS Z: Subscriptions 14,762,634 128,088,442 33,169,321 289,096,535 16,131,131 138,763,864 Proceeds received in connection with merger -- -- -- -- 22,121,411 190,685,846 Distributions reinvested 195,174 1,693,696 312,399 2,717,394 426,395 3,668,146 Redemptions (14,739,230) (127,807,772) (19,471,607) (169,227,269) (9,419,905) (80,968,926) ----------- ------------ ----------- ------------ ----------- ----------- Net increase (decrease) 218,578 1,974,366 14,010,113 122,586,660 29,259,032 252,148,930
(a) Class C shares were initially offered on October 13, 2003. (b) The Fund changed its fiscal year end from December 31 to August 31. (c) 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 renamed 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 renamed Class Z shares. See Accompanying Notes to Financial Statements. 128-129 Spread STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY____________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
FIXED INCOME SECURITIES FUND --------------------------------------------------------------------------------------- (UNAUDITED) SIX MONTHS ENDED PERIOD ENDED YEAR ENDED FEBRUARY 29, 2004 (a) AUGUST 31, 2003 (b) DECEMBER 31, 2002 (c) --------------------------- --------------------------- --------------------------- SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($) - -------------------------------------------------------------------------------------------------------------------- CLASS A: Subscriptions 188,853 2,552,964 726,952 9,909,718 69,868 939,670 Distributions reinvested 10,213 138,352 4,853 65,705 19 252 Redemptions (88,242) (1,191,346) (239,158) (3,233,766) -- -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase 110,824 1,499,970 492,647 6,741,657 69,887 939,922 CLASS B: Subscriptions 66,726 901,787 262,519 3,564,890 108,490 1,456,255 Distributions reinvested 3,747 50,765 3,019 41,001 148 1,998 Redemptions (55,520) (750,186) (43,299) (588,947) (257) (3,454) ------------ ------------ ------------ ------------ ------------ ------------ Net increase 14,953 202,366 222,239 3,016,944 108,381 1,454,799 CLASS C: Subscriptions 15,310 207,175 -- -- -- -- Distributions reinvested 52 712 -- -- -- -- Redemptions (5,682) (76,813) -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase 9,680 131,074 -- -- -- -- CLASS D: Subscriptions 2,392 32,179 226,577 3,084,131 31,506 421,439 Distributions reinvested 1,672 22,656 1,525 20,715 38 510 Redemptions (21,236) (286,224) (62,333) (849,629) -- -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) (17,172) (231,389) 165,769 2,255,217 31,544 421,949 CLASS Z: Subscriptions 3,011,976 40,720,670 13,907,825 189,047,650 22,424,154 299,097,456 Distributions reinvested 653,780 8,853,550 1,009,178 13,708,472 1,948,592 25,971,318 Redemptions (13,100,904) (176,736,371) (17,459,206) (236,640,077) (19,120,878) (254,637,100) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) (9,435,148) (127,162,151) (2,542,203) (33,883,955) 5,251,868 70,431,674
NATIONAL MUNICIPAL BOND FUND ----------------------------------------------------------------------------------- (UNAUDITED) SIX MONTHS ENDED PERIOD ENDED YEAR ENDED FEBRUARY 29, 2004 (a) AUGUST 31, 2003 (b) DECEMBER 31, 2002 (c) ------------------------- ------------------------- --------------------------- SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($) - ---------------------------------------------------------------------------------------------------------------- CLASS A: Subscriptions 55,761 576,965 53,632 553,278 6,496 66,135 Distributions reinvested 1,358 14,065 578 5,930 41 425 Redemptions (4,072) (41,386) (21,357) (221,347) -- -- ---------- ------------ ---------- ------------ ------------ ------------ Net increase 53,047 549,644 32,853 337,861 6,537 66,560 CLASS B: Subscriptions 23,390 241,011 59,020 608,830 21,761 222,588 Distributions reinvested 983 10,177 460 4,713 89 906 Redemptions (9,261) (95,403) (7,781) (79,981) (14,822) (150,595) ---------- ------------ ---------- ------------ ------------ ------------ Net increase 15,112 155,785 51,699 533,562 7,028 72,899 CLASS C: Subscriptions 77,251 794,043 -- -- -- -- Distributions reinvested 1,033 10,693 -- -- -- -- Redemptions (99) (1,024) -- -- -- -- ---------- ------------ ---------- ------------ ------------ ------------ Net increase 78,185 803,712 -- -- -- -- CLASS D: Subscriptions 4,788 49,597 39,862 410,170 8,119 83,038 Distributions reinvested 551 5,707 291 2,986 32 322 Redemptions (1,222) (12,454) (1,214) (12,486) (3,292) (33,443) ---------- ------------ ---------- ------------ ------------ ------------ Net increase (decrease) 4,117 42,850 38,939 400,670 4,859 49,917 CLASS Z: Subscriptions 373,247 3,852,076 592,742 6,133,480 1,109,593 11,268,258 Distributions reinvested 29,759 308,052 37,677 387,633 64,411 649,959 Redemptions (582,923) (6,010,141) (812,144) (8,377,987) (981,956) (9,873,648) ---------- ------------ ---------- ------------ ------------ ------------ Net increase (decrease) (179,917) (1,850,013) (181,725) (1,856,874) 192,048 2,044,569
(a) Class C shares were initially offered on October 13, 2003. (b) The Fund changed its fiscal year end from December 31 to August 31. (c) 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 renamed Class Z shares. See Accompanying Notes to Financial Statements. 130-131 Spread STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY____________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
OREGON MUNICIPAL BOND FUND --------------------------------------------------------------------------------------- (UNAUDITED) SIX MONTHS ENDED PERIOD ENDED YEAR ENDED FEBRUARY 29, 2004 (a) AUGUST 31, 2003 (b) DECEMBER 31, 2002 (c) --------------------------- --------------------------- --------------------------- SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($) - ---------------------------------------------------------------------------------------------------------------------- CLASS A: Subscriptions 50,516 631,147 143,490 1,801,219 37,901 471,456 Distributions reinvested 3,975 49,715 1,224 15,231 236 2,929 Redemptions (16,316) (202,822) (8,295) (103,112) -- -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase 38,175 478,040 136,419 1,713,338 38,137 474,385 CLASS B: Subscriptions 28,079 350,724 52,585 657,645 33,682 419,900 Distributions reinvested 1,621 20,264 334 4,158 170 2,114 Redemptions (2,306) (28,736) (1,187) (15,171) (3,990) (49,521) ------------ ------------ ------------ ------------ ------------ ------------ Net increase 27,394 342,252 51,732 646,632 29,862 372,493 CLASS C: Subscriptions 4,890 61,000 -- -- -- -- Distributions reinvested 107 1,337 -- -- -- -- Redemptions -- -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase 4,997 62,337 -- -- -- -- CLASS D: Subscriptions 12,020 148,564 51,705 648,502 37,686 472,508 Distributions reinvested 1,302 16,283 628 7,849 109 1,356 Redemptions (6,824) (85,028) (31,042) (389,956) (1,979) (24,640) ------------ ------------ ------------ ------------ ------------ ------------ Net increase 6,498 79,819 21,291 266,395 35,816 449,224 CLASS Z: Subscriptions 2,009,427 25,069,697 10,541,884 131,976,815 13,500,076 167,348,905 Distributions reinvested 988,802 12,367,536 910,985 11,381,588 1,896,736 23,528,226 Redemptions (4,590,456) (57,280,151) (12,534,293) (156,819,380) (15,383,205) (190,394,095) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) (1,592,227) (19,842,918) (1,081,424) (13,460,977) 13,607 483,036
HIGH YIELD FUND --------------------------------------------------------------------------------------- (UNAUDITED) SIX MONTHS ENDED PERIOD ENDED YEAR ENDED FEBRUARY 29, 2004 (a) AUGUST 31, 2003 (b) DECEMBER 31, 2002 (c) --------------------------- --------------------------- --------------------------- SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($) - ---------------------------------------------------------------------------------------------------------------------- CLASS A: Subscriptions 14,785,382 128,562,588 25,041,610 213,784,547 4,382,301 36,558,214 Distributions reinvested 723,064 6,305,619 450,683 3,856,013 10,597 88,687 Redemptions (5,396,773) (46,797,962) (6,784,180) (57,991,328) (329,642) (2,758,792) ------------ ------------ ------------ ------------ ------------ ------------ Net increase 10,111,673 88,070,245 18,708,113 159,649,232 4,063,256 33,888,109 CLASS B: Subscriptions 2,200,553 19,105,028 9,063,139 77,330,185 2,007,189 16,716,021 Distributions reinvested 189,362 1,650,728 148,406 1,269,735 3,910 32,718 Redemptions (863,121) (7,519,387) (609,559) (5,189,719) (14,669) (122,617) ------------ ------------ ------------ ------------ ------------ ------------ Net increase 1,526,794 13,236,369 8,601,986 73,410,201 1,996,430 16,626,122 CLASS C: Subscriptions 1,711,773 14,968,087 -- -- -- -- Distributions reinvested 7,282 63,785 -- -- -- -- Redemptions (70,600) (615,336) -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase 1,648,455 14,416,536 -- -- -- -- CLASS D: Subscriptions 1,055,340 9,105,474 10,747,325 91,694,699 2,151,932 17,940,183 Distributions reinvested 193,908 1,689,881 172,120 1,472,483 4,089 34,217 Redemptions (1,204,413) (10,498,125) (873,716) (7,476,795) (154) (1,285) ------------ ------------ ------------ ------------ ------------ ------------ Net increase 44,835 297,230 10,045,729 85,690,387 2,155,867 17,973,115 CLASS Z: Subscriptions 49,331,180 428,472,998 100,424,297 857,268,253 89,490,322 756,219,396 Distributions reinvested 2,937,228 25,595,560 3,670,269 31,357,503 3,386,949 28,634,236 Redemptions (38,010,633) (330,983,140) (47,029,601) (401,243,637) (35,810,741) (301,863,222) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) 14,257,775 123,085,418 57,064,965 487,382,119 57,066,530 482,990,410
(a) Class C shares were initially offered on October 13, 2003. (b) The Fund changed its fiscal year end from December 31 to August 31. (c) 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 renamed Class Z shares. See Accompanying Notes to Financial Statements. 132-133 Spread STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY____________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS
DAILY INCOME COMPANY ---------------------------------------------------------------------------------------------- (UNAUDITED) SIX MONTHS ENDED PERIOD ENDED YEAR ENDED FEBRUARY 29, 2004 AUGUST 31, 2003 (a) DECEMBER 31, 2002 ---------------------------- --------------------------- ------------------------------- SHARES DOLLARS ($) SHARES DOLLARS ($) SHARES DOLLARS ($) - --------------------------------------------------------------------------------------------------------------------------- CLASS Z: Subscriptions 269,610,706 269,610,706 468,052,097 468,052,097 1,214,530,352 1,214,530,352 Distributions reinvested 1,384,976 1,384,976 4,068,237 4,068,237 14,408,323 14,408,323 Redemptions (419,457,440) (419,457,440) (710,031,351) (710,031,351) (1,346,398,974) (1,346,398,974) ------------- ------------ ------------ ------------ -------------- -------------- Net decrease (148,461,758) (148,461,758) (237,911,017) (237,911,017) (117,460,299) (117,460,299)
(a) The Fund changed its fiscal year end from December 31 to August 31. See Accompanying Notes to Financial Statements. 134 NOTES TO FINANCIAL STATEMENTS___________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS NOTE 1. ORGANIZATION The Columbia Funds are registered under the Investment Company Act of 1940 (the "1940 Act"), as amended, as open-end management investment companies. Information presented in these financial statements pertains to the following Funds (individually referred to as a "Fund", collectively referred to as the "Funds"): 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 diversified except for the Columbia Real Estate Equity Fund, Columbia Technology Fund and Columbia Oregon Municipal Bond Fund, which are non-diversified. INVESTMENT GOALS The Columbia Common Stock Fund seeks capital appreciation by investing primarily in common stocks of large capitalization, well-established companies. The Columbia Growth Fund seeks capital appreciation by investing in stocks of companies expected to experience long-term, above average earnings growth. The Columbia International Stock Fund seeks long-term capital appreciation by investing in stocks issued by companies from at least three countries outside the United States. The Columbia Mid Cap Growth Fund seeks significant capital appreciation by investing in stocks of companies with a market capitalization, at the time of initial purchase, equal to or less than the largest stock in the Russell MidCap Index. The Columbia Small Cap Growth Fund seeks capital appreciation by investing in stocks of companies with a market capitalization, at the time of initial purchase, equal to or less than the largest stock in the S&P SmallCap 600 Index. The Columbia Real Estate Equity Fund seeks capital appreciation and above-average income by investing in stocks of companies principally engaged in the real estate industry, including real estate investment trusts (REITs). The Columbia Technology Fund seeks capital appreciation by investing in stocks of technology companies that may benefit from technological improvements, advancements or developments. The Columbia Strategic Investor Fund seeks long-term growth of capital by using a "value" approach to investing primarily in common stocks. The Columbia Balanced Fund seeks high total return by investing in common stocks and debt securities. The Columbia Short Term Bond Fund seeks a high level of current income consistent with a high degree of principal stability by investing primarily in short-term, investment-grade, fixed income securities. The Columbia Fixed Income Securities Fund seeks a high level of income by investing in a broad range of debt securities with intermediate to long-term maturities. The Columbia National Municipal Bond Fund seeks a high level of income exempt from federal income tax by investing primarily in municipal securities issued by state and local governments, their agencies and authorities, as well as the District of Columbia and U.S. territories and possessions. The Columbia Oregon Municipal Bond Fund seeks a high level of income exempt from federal and Oregon income tax by investing primarily in municipal securities issued by the state of Oregon. The Columbia High Yield Fund seeks a high level of income, with capital appreciation as a secondary goal, by investing in non-investment-grade, corporate debt securities. The Columbia Daily Income Company seeks a high level of income consistent with the maintenance of liquidity and the preservation of capital by investing primarily in high quality money market securities. FUND SHARES Each Fund may issue one billion shares. 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 five classes of shares: Class A, Class B, Class C, 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 six classes of shares: Class A, Class B, Class C, Class D, Class G and Class Z. The Columbia Mid Cap Growth Fund 135 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS and Columbia Short Term Bond Fund offer seven classes of shares: Class A, Class B, Class C, Class D, Class G, Class T and Class Z. The Class C shares commenced operations effective October 13, 2003 for all Funds except the Columbia Small Cap Growth Fund and Columbia Daily Income Company. Prior to November 1, 2002, each Fund was single class, which were subsequently renamed Class Z shares. Each share class has its own expense structure. Class A and Class T shares are subject to a front-end sales charge based on the amount of initial investment. Class A and Class T shares purchased without an initial sales charge in accounts aggregating $1 million to $25 million at the time of purchase are subject to a 1.00% contingent deferred sales charge ("CDSC") on shares sold within eighteen months of the time of purchase. Class B and Class G shares are subject to a maximum CDSC of 5.00% based upon the holding period after purchase. Class B shares will convert to Class A shares in a certain number of years after purchase, depending on the program under which shares were purchased. Class G shares will convert to Class T shares in eight years after purchase. Class C shares are subject to a 1.00% CDSC on shares sold within one year after purchase. Class D shares are subject to a front-end sales charge of 1.00% and a 1.00% CDSC on shares sold within one year after purchase. 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, the Class D sales charge of 1.00% is waived effective October 13, 2003. Class Z shares are offered continuously at net asset value. There are certain restrictions on the purchase of Class Z shares, as described in each Fund's prospectus. Effective October 13, 2003, the 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. NOTE 2. SIGNIFICANT ACCOUNTING POLICIES USE OF ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. SECURITY VALUATION Equity securities are valued at the last sale price at the close of the principal exchange on which they trade. Unlisted securities or listed securities for which there were no sales during the day are valued at the closing bid price on such exchanges or over-the-counter markets. Debt securities generally are valued by a pricing service approved by the Funds' Board of Directors, based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques which take into account appropriate factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as broker quotes. Debt securities for which quotations are readily available are valued at an over-the-counter or exchange bid quotation. Certain debt securities, which tend to be more thinly traded and of lesser quality, are priced based on fundamental analysis of the financial condition of the issuer and the estimated value of any collateral. Valuations developed through pricing techniques may vary from the actual amounts realized upon sale of the securities, and the potential variation may be greater for those securities valued using fundamental analysis. Short-term debt obligations maturing within 60 days are valued at amortized cost, which approximates market value. Investments in other investment companies are valued at net asset value. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded. Foreign securities are generally valued at the closing price on the foreign exchange or market on which they trade. If any foreign share prices are not readily available as a result of limited share activity, the 136 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS securities are valued at the last sale price of the local shares in the principal market in which such securities are normally traded. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the New York Stock Exchange ("NYSE"). The values of such securities used in computing the net asset value of the Funds' shares are determined as of such times. Foreign currency exchange rates are generally determined at 2:00 p.m. Eastern (U.S.) time. Occasionally, events affecting the values of such foreign securities and such exchange rates may occur between the times at which they are determined and the close of the customary trading session of the NYSE, which would not be reflected in the computation of the Funds' net asset value. If events materially affecting the values of such foreign securities occur and it is determined that market quotations are not readily available, then these foreign securities will be valued at their fair value using procedures approved by the Board of Directors. Investments for which market quotations are not readily available, or quotations which management believes are not appropriate, are valued at fair value under procedures approved by the Board of Directors. Securities in the Columbia Daily Income Company are valued utilizing the amortized cost valuation method permitted in accordance with Rule 2a-7 under the 1940 Act provided certain conditions are met. This method involves valuing a portfolio security initially at its cost and thereafter assuming a constant amortization to maturity of any discount or premium. SECURITY TRANSACTIONS Security transactions are accounted for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes. FUTURES CONTRACTS Certain Funds may invest in municipal and U.S. Treasury futures contracts. The Funds will invest in these instruments to hedge against the effects of changes in the value of portfolio securities due to anticipated changes in interest rates and/or market conditions, for duration management, or when the transactions are economically appropriate to the reduction of risk inherent in the management of the Funds and not for trading purposes. The use of futures contracts involves certain risks, which include: (1) imperfect correlation between the price movement of the instruments and the underlying securities, (2) inability to close out positions due to differing trading hours, or the temporary absence of a liquid market, for either the instrument or the underlying securities, or (3) an inaccurate prediction by Columbia Management Advisors, Inc. of the future direction of interest rates. Any of these risks may involve amounts exceeding the variation margin recorded in the Funds' Statement of Assets and Liabilities at any given time. Upon entering into a futures contract, the Funds deposit cash or securities with the broker in an amount sufficient to meet the initial margin requirement. Subsequent payments are made or received by the Funds equal to the daily change in the contract value and are recorded as variation margin payable or receivable and offset in unrealized gains or losses. The Funds also identify portfolio securities as segregated with the custodian in a separate account in an amount equal to the futures contract. The Funds recognize a realized gain or loss when the contract is closed or expires. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS Forward foreign currency exchange contracts are agreements to exchange one currency for another at a future date at a specified price. These contracts are used to minimize the exposure to foreign exchange rate fluctuations during the period between trade and settlement date of the contracts. Certain Funds may utilize forward foreign currency exchange contracts in connection with the settlement of purchases and sales of securities. Certain Funds may also enter into these contracts to hedge certain other foreign currency denominated assets. Contracts to buy generally are used to acquire exposure to foreign currencies, while contracts to sell are used to hedge the Funds' investments against currency fluctuations. Forward currency contracts are valued daily at the current exchange rate of the underlying currency, resulting in unrealized gains (losses) which become realized at the time the foreign currency contracts are closed or mature. Realized and unrealized gains 137 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS (losses) arising from such transactions are included in net realized and unrealized gains (losses) on foreign currency transactions. The use of forward currency contracts does not eliminate fluctuations in the prices of the Funds' portfolio securities. While the maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened, exposure is typically limited to the change in value of the contract (in U.S. dollars) over the period it remains open. The Funds could also be exposed to risk if the counterparties of the contracts are unable to fulfill the terms of the contracts. REPURCHASE AGREEMENTS Each Fund may engage in repurchase agreement transactions with institutions that the Funds' investment advisor has determined are creditworthy. The Funds, through their custodian, receive delivery of underlying securities collateralizing a repurchase agreement. Collateral is at least equal, at all times, to the value of the repurchase obligation including interest. A repurchase agreement transaction involves certain risks in the event of default or insolvency of the counterparty. These risks include possible delays or restrictions upon each Fund's ability to dispose of the underlying securities and a possible decline in the value of the underlying securities during the period while the Funds seek to assert their rights. DELAYED DELIVERY SECURITIES Certain Funds may trade securities on other than normal settlement terms, including securities purchased or sold on a "when-issued" basis. This may increase the risk if the other party to the transaction fails to deliver and causes the Funds to subsequently invest at less advantageous prices. The Funds identify cash or liquid portfolio securities as segregated with the custodian in an amount equal to the delayed delivery commitment. INCOME RECOGNITION Interest income is recorded on the accrual basis. Premium and discount are amortized and accreted, respectively, on all debt securities. Corporate actions and dividend income are recorded on the ex-date, except for certain foreign securities which are recorded as soon after ex-date as the Funds become aware of such, net of non-reclaimable tax withholdings. Awards from class action litigation are recorded as a reduction of cost if the Funds still own the applicable securities on the payment date. If the Funds no longer own the applicable securities, the proceeds are recorded as realized gains. The Columbia Real Estate Equity Fund estimates components of distributions from REITs. Distributions received in excess of income are recorded as a reduction of the cost of the related investments. FOREIGN CURRENCY TRANSACTIONS The values of all assets and liabilities quoted in foreign currencies are translated into U.S. dollars at that day's exchange rates. Net realized and unrealized gains (losses) on foreign currency transactions include gains (losses) arising from the fluctuation in exchange rates between trade and settlement dates on securities transactions, gains (losses) arising from the disposition of foreign currency and currency gains (losses) between the accrual and payment dates on dividends, interest income and foreign withholding taxes. For financial statement purposes, the Funds do not distinguish that portion of gains (losses) on investments which is due to changes in foreign exchange rates from that which is due to changes in market prices of the investments. Such fluctuations are included with the net realized and unrealized gains (losses) on investments. DETERMINATION OF CLASS NET ASSET VALUES All income, expenses (other than class-specific expenses, as shown on the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of a Fund on a daily basis for purposes of determining the net asset value of each class. Income and expenses are allocated to each class based on the settled shares method, while realized and unrealized gains (losses) are allocated based on the relative net assets of each class for 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. For all other Funds, 138 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS income and expenses (other than class-specific expenses, as shown on the Statement of Operations) and realized and unrealized gains (losses), are allocated to each class of a Fund, based on the relative net assets of each class. FEDERAL INCOME TAX STATUS Each Fund intends to qualify each year as a "regulated investment company" under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its taxable income, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, by distributing in each calendar year substantially all of its net investment income, capital gains and certain other amounts, if any, each Fund will not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded. FOREIGN CAPITAL GAINS TAXES Realized gains in certain countries may be subject to foreign taxes at the fund level, at rates ranging from approximately 10% to 30%. The Funds accrue for such foreign taxes on net realized and unrealized gains at the appropriate rate for each jurisdiction. 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 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. 139 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS NOTE 3. FEDERAL TAX INFORMATION The tax character of distributions paid during the period ended August 31, 2003 was as follows:
PERIOD ENDED AUGUST 31, 2003 ---------------------------------------------------- LONG-TERM TAX-EXEMPT ORDINARY CAPITAL INCOME INCOME 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
The tax character of distributions paid during the year ended December 31, 2002 was as follows:
YEAR ENDED DECEMBER 31, 2002 ------------------------------------------------------------------ LONG-TERM TAX-EXEMPT ORDINARY CAPITAL TAX RETURN INCOME INCOME 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
Unrealized appreciation and depreciation at February 29, 2004, based on cost of investments for federal income tax purposes, excluding any unrealized appreciation and depreciation from changes in the value of assets and liabilities resulting from changes in exchange rates, was:
UNREALIZED UNREALIZED NET UNREALIZED APPRECIATION DEPRECIATION APPRECIATION -------------------------------------------- Columbia Common Stock Fund ........... $ 82,552,143 $ (2,413,941) $ 80,138,202 Columbia Growth Fund ................. 212,022,607 (9,079,285) 202,943,322 Columbia International Stock Fund .... 94,055,101 (6,151,379) 87,903,722 Columbia Mid Cap Growth Fund ......... 231,115,046 (14,978,891) 216,136,155 Columbia Small Cap Growth Fund ....... 168,154,438 (8,108,956) 160,045,482 Columbia Real Estate Equity Fund ..... 340,381,142 (3,533,799) 336,847,343 Columbia Technology Fund ............. 6,025,983 (1,092,430) 4,933,553 Columbia Strategic Investor Fund ..... 68,049,140 (1,699,262) 66,349,878 Columbia Balanced Fund ............... 85,075,872 (3,067,074) 82,008,798 Columbia Short Term Bond Fund ........ 6,141,418 (784,808) 5,356,610 Columbia Fixed Income Securities Fund. 13,971,186 (1,121,869) 12,849,317 Columbia National Municipal Bond Fund. 1,017,190 (373) 1,016,817 Columbia Oregon Municipal Bond Fund .. 33,599,558 (2,916,484) 30,683,074 Columbia High Yield Fund ............. 64,119,174 (3,345,003) 60,774,171
140 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS The following capital loss carryforwards, determined as of August 31, 2003, may be available to reduce taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code:
YEAR OF 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* ..... -- -- -- -- -- -- -- -- 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, 2003. Of the capital loss carryforwards attributable to Columbia Growth Fund, $30,564,918 ($23,087,439 expiring 8/31/07 and $7,477,479 expiring 8/31/08) was obtained upon the Columbia Growth Fund's merger with Galaxy Large Cap Growth Fund (See Note 11). Of the capital loss carryforwards attributable to Columbia International Stock Fund, $9,124,064 ($7,196,259 expiring 8/31/07 and $1,927,805 expiring 8/31/08) and $4,725,563 ($194,260 expiring 8/31/07, $3,871,712 expiring 8/31/08 and $659,591 expiring 8/31/09) were obtained upon the Columbia International Stock Fund's merger with Liberty Newport International Equity Fund and Stein Roe International Fund, respectively (see Note 11). Of the capital loss carryforwards attributable to Columbia Mid Cap Growth Fund, $9,732,198 ($927,932 expiring 8/31/07, $7,427,424 expiring 8/31/08 and $1,376,842 expiring 8/31/09), $39,492,613 ($5,340,814 expiring 8/31/07, $22,105,946 expiring 8/31/08 and $12,045,853 expiring 8/31/09) and 141 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS $4,415,697 ($2,971,232 expiring 8/31/07, $938,652 expiring 8/31/08 and $505,813 expiring 8/31/09) were obtained upon the Columbia Mid Cap Growth Fund's merger with Liberty Midcap Growth Fund, Galaxy Growth II Fund and Stein Roe Capital Opportunities Fund, respectively (See Note 11). Of the capital loss carryforwards attributable to Columbia Strategic Investor Fund, $1,968,809 ($1,331,685 expiring 8/31/07 and $637,124 expiring 8/31/08) and $252,710 ($100,306 expiring 8/31/07 and $152,404 expiring 8/31/08) were obtained upon the Columbia Strategic Investor Fund's merger with Liberty Contrarian Fund and Liberty Contrarian Equity Fund, respectively (See Note 11). Of the capital loss carryforwards attributable to Columbia Short Term Bond Fund, $2,070,780 ($450,166 expiring 8/31/05, $517,428 expiring 8/31/06 and $1,103,188 expiring 8/31/08) was obtained upon the Columbia Short Term Bond Fund's merger with Galaxy Short Term Bond Fund (See Note 11). NOTE 4. FEES AND COMPENSATION PAID TO AFFILIATES INVESTMENT ADVISORY FEE Columbia Management Advisors, Inc. ("Columbia") is the investment advisor to the Funds. Prior to April 1, 2004, Columbia was an indirect, wholly owned subsidiary of FleetBoston Financial Corporation ("FleetBoston"). Effective April 1, 2004, FleetBoston was acquired by Bank of America Corporation ("BOA"), see Note 12. Columbia provides administrative and other services. Columbia receives a monthly investment advisory fee based on each Fund's average daily net assets at the following annual rates: FEE RATE ----- Columbia Common Stock Fund 0.600% Columbia Small Cap Growth Fund 1.000% Columbia Real Estate Equity Fund 0.750% Columbia Technology Fund 1.000% Columbia Strategic Investor Fund 0.750% Columbia Balanced Fund 0.500% Columbia Short Term Bond Fund 0.500% Columbia Fixed Income Securities Fund 0.500% Columbia National Municipal Bond Fund 0.500% Columbia Oregon Municipal Bond Fund 0.500% Columbia High Yield Fund 0.600% FEES ON FEES ON FEES ON FEES ON AVERAGE AVERAGE AVERAGE AVERAGE NET ASSETS NET ASSETS NET ASSETS NET ASSETS FIRST $200 NEXT $300 NEXT $500 OVER $1 MILLION MILLION MILLION BILLION ---------- ---------- ---------- ---------- Columbia Growth Fund 0.750% 0.625% 0.500% 0.500% Columbia International Stock Fund 1.000% 1.000% 0.950% 0.900% Columbia Mid Cap Growth Fund 1.000% 1.000% 0.750% 0.750% Columbia Daily Income Company 0.500% 0.500% 0.450% 0.400% For the six months ended February 29, 2004, the annualized effective investment advisory fee rates for the Columbia Growth Fund, Columbia International Stock Fund, Columbia Mid Cap Growth Fund and Columbia Daily Income Company were 0.59%, 0.96%, 0.87% and 0.48%, respectively. 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 those functions to State Street Corporation ("State Street"). Columbia pays the total fees collected to State Street under the Outsourcing Agreement. Effective November 1, 2003, under its pricing, bookkeeping and fund administration agreement with the Funds, Columbia receives from each Fund an annual flat financial accounting fee of $25,000, an annual flat financial reporting fee of $19,565 and a monthly financial accounting fee at the annual rate of 0.02% of the average daily net assets of each Fund. The fee for a Fund in any year will not exceed $150,000. 142 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS Prior to November 1, 2003, Columbia was entitled to receive a monthly pricing and bookkeeping fee at the annual rate of 0.01% of the average daily net assets of each Fund. The fee for a Fund in any year was not less than $25,000 and did not exceed $150,000. For the six months ended February 29, 2004, the annualized effective pricing and bookkeeping fee rates for the Funds were as follows: Columbia Common Stock Fund 0.031% Columbia Growth Fund 0.017% Columbia International Stock Fund 0.026% Columbia Mid Cap Growth Fund 0.014% Columbia Small Cap Growth Fund 0.021% Columbia Real Estate Equity Fund 0.016% Columbia Technology Fund 0.100% Columbia Strategic Investor Fund 0.031% Columbia Balanced Fund 0.029% Columbia Short Term Bond Fund 0.035% Columbia Fixed Income Securities Fund 0.033% Columbia National Municipal Bond Fund 0.352% Columbia Oregon Municipal Bond Fund 0.039% Columbia High Yield Fund 0.011% Columbia Daily Income Company 0.019% TRANSFER AGENT FEE Columbia Funds Services, Inc. (the "Transfer Agent"), formerly Liberty Funds Services, Inc., an indirect, wholly owned subsidiary of BOA, provides shareholder services to the Funds. For such services, the Transfer Agent receives a fee per open account, in addition to reimbursement for certain out-of-pocket expenses. The annual charges per open account for the transfer fees are as follows: PER OPEN ACCOUNT FEE RATE -------- Columbia Common Stock Fund $ 28.00 Columbia Growth Fund $ 28.00 Columbia International Stock Fund $ 28.00 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 Prior to November 1, 2003, the Transfer Agent was entitled to receive a transfer agent fee for all Funds' Class Z shares, with the exception of Columbia National Municipal Bond Fund, based on the number of shareholder accounts or a minimum of $1,500 per month. Columbia National Municipal Bond Fund was not subject to the monthly $1,500 fee minimum. For Class A, Class B, Class D, Class G and Class T shares, the Transfer Agent was entitled to receive a monthly fee at the lower of: 1) the monthly fee for Class Z shares described above 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. The Transfer Agent was also entitled to receive reimbursement for certain out-of-pocket expenses. Effective October 13, 2003, Liberty Funds Services, Inc. changed its name to Columbia Funds Services, Inc. 143 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS UNDERWRITING DISCOUNTS, SERVICE AND DISTRIBUTION FEES Columbia Funds Distributor, Inc. (the "Distributor"), an indirect, wholly owned subsidiary of BOA, is the principal underwriter of the Funds. Prior to October 13, 2003, Columbia Funds Distributor, Inc. was known as Liberty Funds Distributor, Inc. For the six months ended February 29, 2004, the Distributor has retained net underwriting discounts and CDSC fees as follows:
FRONT-END SALES CHARGE CONTINGENT DEFERRED SALES CHARGE(CDSC) ------------------ --------------------------------------------------------------- CLASS A CLASS T CLASS A CLASS B CLASS C CLASS D CLASS G CLASS T ------- ------- ------- ------- ------- ------- ------- ------- Columbia Common Stock Fund .............. $ 1,332 $ -- $ -- $ 903 $ 162 $ -- $ -- $ -- Columbia Growth Fund ........... 3,518 -- 9 824 -- 290 11,501 -- Columbia International Stock Fund ....... 4,802 -- 13 8,454 120 26 -- -- Columbia Mid Cap Growth Fund ............ 4,988 95 -- 4,334 48 112 1,523 -- Columbia Real Estate Equity Fund ........ 16,162 -- 25,000 10,173 44 1,268 -- -- Columbia Technology Fund ................ 2,354 -- -- 674 -- 250 -- -- Columbia Strategic Investor Fund ........ 15,783 -- 487 5,731 34 -- -- -- Columbia Balanced Fund ......... 2,868 -- -- 6,289 -- 56 -- -- Columbia Short Term Bond Fund ........... 16,250 -- 17,993 76,704 57 13,883 2,079 -- Columbia Fixed Income Securities Fund ................ 3,535 -- 728 11,674 -- 1,371 -- -- Columbia National Municipal Bond Fund ............ 1,505 -- -- 778 -- 39 -- -- Columbia Oregon Municipal Bond Fund ............ 1,201 -- -- 1,379 -- 819 -- -- Columbia High Yield Fund ....... 69,096 -- 50,037 116,184 351 53,242 -- --
144 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS The Funds have adopted a 12b-1 plan (the "Plan") which requires the payment of a monthly service and distribution fee to the Distributor based on the average daily net assets of each Fund at the following annual rates:
DISTRIBUTION FEE ------------------------------------------------------- CLASS A(a) CLASS B CLASS C CLASS D CLASS G ---------- ------- ------- ------- ------- Columbia Common Stock Fund ............. 0.10% 0.75% 0.75% 0.75% -- Columbia Growth Fund ................... 0.10% 0.75% 0.75% 0.75% 0.65%(b) Columbia International Stock Fund ...... -- 0.75% 0.75% 0.75% -- Columbia Mid Cap Growth Fund ........... 0.10% 0.75% 0.75% 0.75% 0.65%(b) Columbia Real Estate Equity Fund ....... 0.10% 0.75% 0.75% 0.75% -- Columbia Technology Fund ............... 0.10% 0.75% 0.75% 0.75% -- Columbia Strategic Investor Fund ....... -- 0.75% 0.75% 0.75% -- Columbia Balanced Fund ................. 0.10% 0.75% 0.75% 0.75% -- Columbia Short Term Bond Fund .......... 0.10% 0.75% 0.75% 0.75% 0.65%(c) Columbia Fixed Income Securities Fund .. 0.10% 0.75% 0.75% 0.75% -- Columbia National Municipal Bond Fund .. 0.10% 0.75% 0.75% 0.75% -- Columbia Oregon Municipal Bond Fund .... 0.10% 0.75% 0.75% 0.75% -- Columbia High Yield Fund ............... 0.10% 0.75% 0.75% 0.75% --
SERVICE FEE ------------------------------------------------------- CLASS A(a) CLASS B CLASS C CLASS D CLASS G ---------- ------- ------- ------- ------- Columbia Common Stock Fund ............. 0.25% 0.25% 0.25% 0.25% -- Columbia Growth Fund ................... 0.25% 0.25% 0.25% 0.25% 0.50%(b) Columbia International Stock Fund ...... 0.25% 0.25% 0.25% 0.25% -- Columbia Mid Cap Growth Fund ........... 0.25% 0.25% 0.25% 0.25% 0.50%(b) Columbia Real Estate Equity Fund ....... 0.25% 0.25% 0.25% 0.25% -- Columbia Technology Fund ............... 0.25% 0.25% 0.25% 0.25% -- Columbia Strategic Investor Fund ....... 0.25% 0.25% 0.25% 0.25% -- Columbia Balanced Fund ................. 0.25% 0.25% 0.25% 0.25% -- Columbia Short Term Bond Fund .......... 0.25% 0.25% 0.25% 0.25% 0.50%(c) Columbia Fixed Income Securities Fund .. 0.25% 0.25% 0.25% 0.25% -- Columbia National Municipal Bond Fund .. 0.25% 0.25% 0.25% 0.25% -- Columbia Oregon Municipal Bond Fund .... 0.25% 0.25% 0.25% 0.25% -- Columbia High Yield Fund ............... 0.25% 0.25% 0.25% 0.25% --
(a) The Funds' Board of Directors currently limits payments under the Plan for Class A shares to 0.25% annually of the Class A shares average daily net assets. (b) The Fund's Board of Directors currently limits payments under the Plan for Class G shares to 0.95% annually of the Class G shares average daily net assets. (c) The Fund's Board of Directors currently limits payments under the Plan for Class G shares to 0.80% annually of the Class G shares average daily net assets. 145 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS The Distributor has voluntarily agreed to waive a portion of the Class C and Class D distribution and service fees so that combined these fees do not exceed the annual rates on the average daily net assets of Class C and Class D shares of each Fund 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 FEES 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 advisors. The annual service fee may equal up to 0.50% annually 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 and Columbia Short Term Bond Fund do not intend to pay more than 0.30% and 0.15%, respectively, for annual Class T shareholder services fees. EXPENSE LIMITS AND FEE REIMBURSEMENTS Columbia has agreed to waive advisory fees and reimburse certain expenses to the extent that total expenses (exclusive of distribution and service fees, brokerage commissions, interest, taxes and extraordinary expenses, if any) exceed 1.65% and 0.65% annually of the average daily net assets for the Columbia Technology Fund and Columbia National Municipal Bond Fund, respectively. These arrangements may be revised or discontinued at any time. Columbia has contractually agreed to reimburse certain expenses of the Columbia Short Term Bond Fund to the extent that total expenses (exclusive of distribution and service fees, brokerage commissions, interest, taxes and extraordinary expenses, if any) exceed 0.66% annually of the Fund's average daily net assets. Columbia has agreed to maintain the waiver until May 2004. Prior to November 1, 2003, Columbia voluntarily reimbursed the Columbia Short Term Bond Fund at the annual rate of 0.75% of the Fund's average daily net assets. In addition, Columbia or its affiliates have voluntarily agreed to reimburse class specific transfer agency fees for the Columbia Short Term Bond Fund to the extent necessary to prevent total annual operating expenses from exceeding 1.64% and 0.98% for Class G and Class T, respectively. Columbia or its affiliates have agreed to maintain the waiver until May 24, 2004. Effective January 1, 2004, Columbia has voluntarily agreed to waive a portion of its investment advisory fee for the Columbia International Stock Fund at an annual rate of 0.10% on the Fund's average daily net assets. Columbia, at its discretion, may revise or discontinue this arrangement any time. Columbia has agreed to waive a portion of the transfer agent fees for the Columbia International Stock Fund, Columbia Mid Cap Growth Fund and Columbia Strategic Investor Fund. Columbia has agreed to maintain this waiver until May 31, 2004. Thereafter, these arrangements may be revised or discontinued by Columbia at any time. For the six months ended February 29, 2004, Columbia waived transfer agent fees for the Funds based on each class' average daily net assets at the following annual rates: CLASS A CLASS B CLASS C CLASS D CLASS Z ------- ------- ------- ------- ------- Columbia International Stock Fund .............. -- 0.11% 0.29% 0.58% 0.10% Columbia Mid Cap Growth Fund .................... 0.01% 0.12% 0.09% 0.09% 0.05% Columbia Strategic Investor Fund .................... -- 0.23% 0.15% 0.15% 0.03% 146 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS CUSTODY CREDITS Each Fund has an agreement with its custodian bank under which custody fees may be reduced by balance credits. The Funds could have invested a portion of the assets utilized in connection with the expense offset arrangement in an income-producing asset if they had not entered into such an agreement. FEES PAID TO OFFICERS AND DIRECTORS The Funds pay no compensation to their officers, all of whom are employees of Columbia or its affiliates. The Funds' Directors may participate in a deferred compensation plan which may be terminated at any time. Obligations of the plan will be paid solely out of the Funds' assets. NOTE 5. PORTFOLIO INFORMATION For the six months ended February 29, 2004, the cost of purchases and proceeds from sales of securities, excluding short-term obligations, were as follows:
U.S. GOVERNMENT OTHER INVESTMENT SECURITIES SECURITIES ---------------------------- ------------------------------ PURCHASES SALES PURCHASES SALES ------------ ------------ ------------- ------------- Columbia Common Stock Fund ............. $ 1,983,692 $ 2,542,882 $ 364,044,680 $ 431,796,193 Columbia Growth Fund ................... 7,290 13,463,277 713,162,831 748,879,129 Columbia International Stock Fund ...... -- -- 302,091,893 129,850,427 Columbia Mid Cap Growth Fund ........... -- -- 542,769,722 592,608,239 Columbia Small Cap Growth Fund ......... -- -- 516,391,614 439,797,460 Columbia Real Estate Equity Fund ....... -- -- 112,165,509 64,682,361 Columbia Technology Fund ............... -- -- 71,604,616 56,952,508 Columbia Strategic Investor Fund ....... 2,270,981 1,168,472 147,644,355 155,680,259 Columbia Balanced Fund ................. 95,391,606 102,549,532 383,705,734 446,494,944 Columbia Short Term Bond Fund .......... 75,405,868 76,264,050 182,365,191 134,954,548 Columbia Fixed Income Securities Fund .. 317,372,122 390,217,101 62,702,724 127,684,391 Columbia National Municipal Bond Fund .. -- -- 1,402,861 2,885,866 Columbia Oregon Municipal Bond Fund .... -- -- 34,666,451 61,255,089 Columbia High Yield Fund ............... -- -- 450,840,942 219,282,548
NOTE 6. OTHER RELATED PARTY TRANSACTIONS During the six months ended February 29, 2004, the Columbia Strategic Investor Fund used Fleet Institutional Services ("FIS"), a wholly owned subsidiary of FleetBoston, as a broker. Total commissions paid to FIS during the period were $500. NOTE 7. 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. Redemption fees, which are retained by the Fund, are accounted for as an addition to paid in capital and are allocated to each class proportionately for purposes of determining the net asset value of each class. Prior to October 9, 2003, redemption fees were recorded as a component of paid-in capital on Class Z shares. For the six months ended February 29, 2004, the redemption fees for the Class Z shares of the Columbia International Stock Fund amounted to $43,624. NOTE 8. LINE OF CREDIT The Funds participate in a $100,000,000 uncommitted line of credit along 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. For the six months ended February 29, 2004, the average daily loan balance outstanding on 147 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS days where borrowings existed for the Columbia Common Stock Fund was $17,313,000 at a weighted average interest rate of 1.50%. For the six months ended February 29, 2004, the Funds, other than the Columbia Common Stock Fund, did not borrow under these arrangements. NOTE 9. DISCLOSURE OF SIGNIFICANT RISKS AND CONTINGENCIES FOREIGN SECURITIES There are certain additional risks involved when investing in foreign securities that are not inherent with investments in domestic securities. These risks may involve foreign currency exchange rate fluctuations, adverse political and economic developments and the possible prevention of currency exchange or other foreign governmental laws or restrictions. In addition, the liquidity of foreign securities may be more limited than that of domestic securities. GEOGRAPHIC CONCENTRATION The Columbia National Municipal Bond Fund has greater than 5% of its total investments at February 29, 2004 invested in debt obligations issued by the states of Illinois, Indiana, Michigan, Oregon, Washington. Also on this date, the Columbia Oregon Municipal Bond Fund has greater than 5% of its total investments invested in debt obligations issued by the state of Oregon. The Funds are also invested in each state's respective political subdivisions, agencies and public authorities to obtain funds for various purposes. These Funds are more susceptible to economic and political factors adversely affecting issuers of each respective state's specific municipal securities than are municipal bond funds that are not concentrated to the same extent in these issuers. HIGH-YIELD SECURITIES Investing in high-yield securities may involve greater credit risk and considerations not typically associated with investing in U.S. Government bonds and other higher quality fixed income securities. These securities are non-investment grade securities, often referred to as "junk bonds." Economic downturns may disrupt the high yield market and impair the ability of issuers to repay principal and interest. Also, an increase in interest rates would likely have an adverse impact on the value of such obligations. Moreover, high-yield securities may be less liquid due to the extent that there is no established retail secondary market and because of a decline in the value of such securities. INDUSTRY FOCUS The Funds may focus their investments in certain industries, subjecting them to greater risk than funds that are more diversified. LEGAL PROCEEDINGS Columbia, the Distributor, and certain of their affiliates (collectively, "The Columbia Group") have received information requests and subpoenas from various regulatory and law enforcement authorities in connection with their investigations of late trading and market timing in mutual funds. The Columbia Group has not uncovered any instances where Columbia or the Distributor were knowingly involved in late trading of mutual fund shares. On February 24, 2004, the Securities and Exchange Commission ("SEC") filed a civil complaint in the United States District Court for the District of Massachusetts against Columbia and the Distributor, alleging that they had violated certain provisions of the federal securities laws in connection with trading activity in mutual fund shares. Also on February 24, 2004, the New York Attorney General ("NYAG") filed a civil complaint in New York Supreme Court, County of New York against Columbia and the Distributor alleging that Columbia and the Distributor had violated certain New York anti-fraud statutes. If either Columbia or the Distributor is unsuccessful in its defense of these proceedings, it could be barred from serving as an investment advisor or distributor for any investment company registered under the Investment Company Act of 1940, as amended (a "registered investment company"). Such results could prevent Columbia, the Distributor or any company that is an affiliated person of Columbia and the Distributor from serving as an investment advisor or distributor for any registered investment company, including your fund. Your fund has been informed by Columbia and the Distributor that, if these results occur, they will seek exemptive relief from the SEC to permit them to continue to serve as your fund's investment advisor and distributor. There is no assurance that such exemptive relief will be granted. On March 15, 2004, Columbia and the Distributor entered into agreements in principle with the SEC 148 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS Division of Enforcement and NYAG in settlement of the charges. Under the agreements, Columbia and the Distributor agreed, inter alia, to the following conditions: payment of $70 million in disgorgement; payment of $70 million in civil penalties; an order requiring Columbia and the Distributor to cease and desist from violations of the antifraud provisions and other provisions of the federal securities laws; governance changes designed to maintain the independence of the mutual fund boards of trustees and ensure compliance with securities laws and their fiduciary duties; and retention of an independent consultant to review Columbia's and the Distributor's compliance policies and procedures. The agreement requires the final approval of the SEC. In a separate agreement with the NYAG, the Columbia Group has agreed to reduce mutual fund fees by $80 million over a five-year period. As a result of these matters or any adverse publicity or other developments resulting from them, there may be increased redemptions or reduced sales of fund shares, which could increase transaction costs or operating expenses, or have other adverse consequences for the funds. NOTE 10. COMPARABILITY OF FINANCIAL STATEMENTS 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. NOTE 11. BUSINESS COMBINATIONS AND MERGERS 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 CAP SHARES GROWTH FUND UNREALIZED ISSUED RECEIVED DEPRECIATION 1 --------- ------------- -------------- 4,943,168 $ 108,315,198 $ (8,049,749) NET ASSETS NET ASSETS NET ASSETS OF THE GALAXY OF THE OF THE LARGE CAP COLUMBIA COLUMBIA GROWTH FUND GROWTH FUND GROWTH 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 Equity Fund ("LNIEF") merged into the Columbia International Stock Fund as follows: NET ASSETS OF SRIF SHARES 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 NET ASSETS OF THE OF THE NET ASSETS COLUMBIA COLUMBIA OF SRIF INTERNATIONAL INTERNATIONAL 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, GGIIF SHARES 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 NET ASSETS OF THE OF THE OF LMCGF, COLUMBIA COLUMBIA GGIIF MID CAP MID CAP AND SRCOF GROWTH FUND GROWTH FUND IMMEDIATELY IMMEDIATELY PRIOR TO PRIOR TO AFTER COMBINATION COMBINATION COMBINATION ------------ ------------ ------------ $588,307,694 $292,172,108 $880,479,802 149 ________________________________________________________________________________ FEBRUARY 29, 2004 (UNAUDITED) COLUMBIA FUNDS 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 OF THE OF THE NET ASSETS COLUMBIA COLUMBIA OF LCF STRATEGIC 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 NET ASSETS OF THE OF THE OF THE GALAXY COLUMBIA COLUMBIA SHORT TERM SHORT TERM 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. NOTE 12. SUBSEQUENT EVENT On April 1, 2004, FleetBoston, including the Funds' investment advisor and distributor, was acquired by BOA. 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. 150 This page intentionally left blank. 151 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA COMMON STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS A SHARES 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $17.22 $14.91 $15.09 ----------- ----------- ----------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (c) 0.02 0.01 --(d) Net realized and unrealized gain (loss) on investments 2.20 2.30 (0.11) ----------- ----------- ----------- Total from investment operations 2.22 2.31 (0.11) - ------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.03) -- (0.07) - ------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $19.41 $17.22 $14.91 Total return (e)(f) 12.90% 15.49% (0.71)% - ------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $729 $223 $32 Ratio of expenses to average net assets (g)(h) 1.19% 1.40% 1.32% Ratio of net investment income (loss) to average net assets (g)(h) 0.21% 0.08% (0.03)% Portfolio turnover rate 87%(f) 102%(f) 107% - -------------------------------------------------------------------------------------------------------------------------
(a) The Fund 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.
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS B SHARES 2004 2003 (a) 2002 (b) - -------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $17.12 $14.91 $15.09 - ------------------------------------------------------------------------------------------------------------------------ INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) (0.06) (0.09) (0.01) Net realized and unrealized gain (loss) on investments 2.19 2.30 (0.12) ----------- ----------- ----------- Total from investment operations 2.13 2.21 (0.13) - ------------------------------------------------------------------------------------------------------------------------ LESS DISTRIBUTIONS: From net investment income -- -- (0.05) - ------------------------------------------------------------------------------------------------------------------------ NET ASSET VALUE, END OF PERIOD $19.25 $17.12 $14.91 Total return (d)(e) 12.44% 14.82% (0.84)% - ------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $1,927 $620 $109 Ratio of expenses to average net assets (f)(g) 1.99% 2.36% 2.07% Ratio of net investment loss to average net assets (f)(g) (0.66)% (0.90)% (0.78)% Portfolio turnover rate 87%(e) 102%(e) 107% - ------------------------------------------------------------------------------------------------------------------------
(a) The Fund 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. 152 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA COMMON STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) PERIOD ENDED FEBRUARY 29, CLASS C SHARES 2004 (a) - ----------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ $17.61 - ----------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (b) (0.05) Net realized and unrealized gain on investments 1.69 ---------- Total from investment operations 1.64 - ----------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $19.25 Total return (c)(d) 9.31% - ----------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $48 Ratio of expenses to average net assets (e)(f) 1.91% Ratio of net investment loss to average net assets (e)(f) (0.66)% Portfolio turnover rate 87%(d) - ----------------------------------------------------------------------- (a) Class C shares were initially offered on October 13, 2003. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized.
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS D SHARES 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $17.11 $14.92 $15.09 - ------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) (0.05) (0.12) (0.01) Net realized and unrealized gain (loss) on investments 2.18 2.31 (0.11) ------------ ------------ ------------ Total from investment operations 2.13 2.19 (0.12) - ------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income -- -- (0.05) - ------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $19.24 $17.11 $14.92 Total return (d)(e) 12.45% 14.68% (0.77)% - ------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $152 $112 $30 Ratio of expenses to average net assets (f)(g) 1.91% 2.61% 2.07% Ratio of net investment loss to average net assets (f)(g) (0.52)% (1.09)% (0.78)% Portfolio turnover rate 87%(e) 102%(e) 107% - -------------------------------------------------------------------------------------------------------------------
(a) The Fund 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 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. 153 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA COMMON STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED YEAR ENDED DECEMBER 31, FEBRUARY 29, AUGUST 31, ------------------------------------------------------------- Class Z Shares 2004 2003 (a) 2002 (b) 2001 2000 1999 1998 - ---------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $17.26 $14.91 $19.97 $24.34 $28.90 $24.40 $22.02 - ---------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) 0.04(c) 0.06(c) 0.07(c) 0.07 (0.01) 0.03 0.09 Net realized and unrealized gain (loss) on investments 2.21 2.29 (5.05) (4.35) (1.54) 6.25 5.68 --------- --------- --------- --------- --------- --------- --------- Total from investment operations 2.25 2.35 (4.98) (4.28) (1.55) 6.28 5.77 - ---------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.10) -- (0.08) (0.07) -- (0.03) (0.13) From net realized gains -- -- -- (0.02) (3.01) (1.75) (3.26) --------- --------- --------- --------- --------- --------- --------- Total distributions (0.10) -- (0.08) (0.09) (3.01) (1.78) (3.39) - ---------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $19.41 $17.26 $14.91 $19.97 $24.34 $28.90 $24.40 Total return (d) 13.09%(e) 15.76%(e) (24.92)% (17.60)% (5.73)% 25.76% 26.28% - ---------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $412,726 $427,669 $416,638 $681,397 $895,134 $959,910 $797,147 Ratio of expenses to average net assets (f) 0.91%(g) 0.94%(g) 0.86% 0.80% 0.75% 0.77% 0.80% Ratio of net investment income (loss) to average net assets (f) 0.49%(g) 0.55%(g) 0.43% 0.32% (0.05)% 0.09% 0.56% Portfolio turnover rate 87%(e) 102%(e) 107% 114% 104% 97% 141% - ----------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were renamed 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. 154 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA GROWTH FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS A SHARES 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $24.61 $20.83 $21.52 - ------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) (0.03) (0.07) --(d) Net realized and unrealized gain (loss) on investments 2.30 3.85 (0.69) ------------ ------------ ------------ Total from investment operations 2.27 3.78 (0.69) - ------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $26.88 $24.61 $20.83 Total return (e)(f) 9.22% 18.15% (3.21)% - ------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $5,340 $4,229 $3,077 Ratio of expenses to average net assets (g)(h) 1.12% 1.33% 1.15% Ratio of net investment loss to average net assets (g)(h) (0.26)% (0.44)% (0.36)% Portfolio turnover rate 76%(f) 110%(f) 165% - -------------------------------------------------------------------------------------------------------------
(a) The Fund 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 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.
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS B SHARES 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $24.47 $20.82 $21.52 - ------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) (0.13) (0.19) (0.03) Net realized and unrealized gain (loss) on investments 2.27 3.84 (0.67) ------------ ------------ ------------ Total from investment operations 2.14 3.65 (0.70) - ------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $26.61 $24.47 $20.82 Total return (d)(e) 8.75% 17.53% (3.25)% - ------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $2,086 $793 $114 Ratio of expenses to average net assets (f)(g) 1.90% 2.11% 1.88% Ratio of net investment loss to average net assets (f)(g) (1.01)% (1.27)% (1.09)% Portfolio turnover rate 76%(e) 110%(e) 165% - -------------------------------------------------------------------------------------------------------------
(a) The Fund 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. 155 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA GROWTH FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) PERIOD ENDED FEBRUARY 29, CLASS C SHARES 2004 (a) - ----------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $24.96 - ----------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (b) (0.10) Net realized and unrealized gain on investments 1.69 ------------ Total from investment operations 1.59 - ----------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $26.55 Total return (c)(d) 6.37% - ----------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $98 Ratio of expenses to average net assets (e)(f) 1.83% Ratio of net investment loss to average net assets (e)(f) (0.94)% Portfolio turnover rate 76%(d) - ----------------------------------------------------------------------- (a) Class C shares were initially offered on October 13, 2003. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized.
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS D SHARES 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $24.48 $20.82 $21.52 - ------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS Net investment loss (c) (0.13) (0.17) (0.02) Net realized and unrealized gain (loss) on investments 2.29 3.83 (0.68) ------------ ------------ ------------ Total from investment operations 2.16 3.66 (0.70) - ------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $26.64 $24.48 $20.82 Total return (d)(e) 8.82% 17.58% (3.25)% - ------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $294 $294 $103 Ratio of expenses to average net assets (f)(g) 1.85% 2.02% 1.88% Ratio of net investment loss to average net assets (f)(g) (0.99)% (1.15)% (1.09)% Portfolio turnover rate 76%(e) 110%(e) 165% - -------------------------------------------------------------------------------------------------------------
(a) The Fund 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 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. 156 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA GROWTH FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS G SHARES 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $24.49 $20.83 $21.52 - ------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) (0.12) (0.16) (0.03) Net realized and unrealized gain (loss) on investments 2.28 3.82 (0.66) ------------ ------------ ------------ Total from investment operations 2.16 3.66 (0.69) - ------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $26.65 $24.49 $20.83 Total return (d)(e) 8.82% 17.57% (3.21)% - ------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $15,248 $14,810 $13,705 Ratio of expenses to average net assets (f)(g) 1.79% 2.00% 1.83% Ratio of net investment loss to average net assets (f)(g) (0.95)% (1.10)% (1.04)% Portfolio turnover rate 76%(e) 110%(e) 165% - -------------------------------------------------------------------------------------------------------------
(a) The Fund 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.
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED YEAR ENDED DECEMBER 31, FEBRUARY 29, AUGUST 31, --------------------------------------------------------------- CLASS Z SHARES 2004 2003 (a) 2002 (b) 2001 2000 1999 1998 - ----------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $24.70 $20.85 $31.35 $40.07 $48.91 $42.51 $34.34 - ----------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) --(c)(d) --(c)(d) (0.01)(c) (0.02) (0.08) (0.03) 0.03 Net realized and unrealized gain (loss) on investments 2.31 3.85 (10.49) (8.55) (3.49) 11.09 10.39 --------- --------- --------- ---------- ---------- ---------- ---------- Total from investment operations 2.31 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 $27.01 $24.70 $20.85 $31.35 $40.07 $48.91 $42.51 Total return (e) 9.35%(f) 18.47%(f) (33.49)% (21.40)% (7.94)% 26.02% 30.34% - ----------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $937,126 $909,611 $811,648 $1,325,844 $1,919,227 $2,160,739 $1,753,024 Ratio of expenses to average net assets (g) 0.82%(h) 0.88%(h) 0.82% 0.72% 0.65% 0.65% 0.68% Ratio of net investment income (loss) to average net assets (g) 0.03%(h) 0.01%(h) (0.03)% (0.07)% (0.18)% (0.07)% 0.21% Portfolio turnover rate 76%(f) 110%(f) 165% 122% 114% 118% 105% - -----------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were renamed 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. 157 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA INTERNATIONAL STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS A SHARES 2004 2003 (a) 2002 (b) - --------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $11.34 $10.05 $10.04 - --------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (c) (0.04) 0.04 (0.02) Net realized and unrealized gain on investments, foreign currency and foreign capital gains tax 2.43 1.25 0.03 ------------ ------------ ------------ Total from investment operations 2.39 1.29 0.01 - --------------------------------------------------------------------------------------------------------------------- REDEMPTION FEES: Redemption fees added to paid-in capital --(c)(d) -- -- - --------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $13.73 $11.34 $10.05 Total return (e)(f)(g) 21.08% 12.84% 0.10% - --------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $25,812 $21,664 $20,178 Ratio of expenses to average net assets (h)(i) 1.77% 1.90% 1.86% Ratio of net investment income (loss) to average net assets (h)(i) (0.70)% 0.61% (0.39)% Waiver (i) 0.04% -- -- Portfolio turnover rate 33%(f) 43%(f) 96% - ---------------------------------------------------------------------------------------------------------------------
(a) The Fund 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 charge or contingent deferred sales charge. (f) Not annualized. (g) Had the Investment Advisor not waived a portion of expenses, total return would have been reduced. (h) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (i) Annualized.
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS B SHARES 2004 2003 (a) 2002 (b) - --------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $11.23 $10.02 $10.04 - ---------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) (0.09) (0.03) (0.05) Net realized and unrealized gain on investments, foreign currency and foreign capital gains tax 2.40 1.24 0.03 ------------ ------------ ------------ Total from investment operations 2.31 1.21 (0.02) - ---------------------------------------------------------------------------------------------------------------------- REDEMPTION FEES: Redemption fees added to paid-in capital --(c)(d) -- -- - ---------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $13.54 $11.23 $10.02 Total return (e)(f)(g) 20.57% 12.08% (0.20)% - ---------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $12,050 $10,316 $10,920 Ratio of expenses to average net assets (h)(i) 2.59% 2.98% 3.64% Ratio of net investment loss to average net assets (h)(i) (1.51)% (0.47)% (2.17)% Waiver (i) 0.15% 0.11% 0.11% Portfolio turnover rate 33%(g) 43%(g) 96% - ----------------------------------------------------------------------------------------------------------------------
(a) The Fund 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) Rounds to less than $0.01 per share. (e) Total return at net asset value assuming no contingent deferred sales charge. (f) Had the Investment 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. 158 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA INTERNATIONAL STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) PERIOD ENDED FEBRUARY 29, CLASS C SHARES 2004 (a) - ----------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $12.27 - ----------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (b) (0.05) Net realized and unrealized gain on investments, foreign currency and foreign capital gains tax 1.36 ------------ Total from investment operations 1.31 - ----------------------------------------------------------------------- REDEMPTION FEES: Redemption fees added to paid-in capital --(b)(c) - ----------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $13.58 Total return (d)(e)(f) 10.68% - ----------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $301 Ratio of expenses to average net assets (g)(h) 2.05% Ratio of net investment loss to average net assets (g)(h) (1.05)% Waiver (h) 0.35% Portfolio turnover rate 33%(f) - ----------------------------------------------------------------------- (a) Class C shares were initially offered on October 13, 2003. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Rounds to less than $0.01 per share. (d) Total return at net asset value assuming no contingent deferred sales charge. (e) Had the Investment 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.
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS D SHARES 2004 2003 (a) 2002 (b) - --------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $11.27 $10.02 $10.04 - --------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (c) (0.06) --(d) (0.04) Net realized and unrealized gain on investments, foreign currency and foreign capital gains tax 2.42 1.25 0.02 ------------ ------------ ------------ Total from investment operations 2.36 1.25 (0.02) - --------------------------------------------------------------------------------------------------------------------- REDEMPTION FEES: Redemption fees added to paid-in capital --(c)(d) -- -- - --------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $13.63 $11.27 $10.02 Total return (e)(f)(g) 20.94% 12.48% (0.20)% - --------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $777 $633 $542 Ratio of expenses to average net assets (h)(i) 2.07% 2.49% 3.48% Ratio of net investment income (loss) to average net assets (h)(i) (0.99)% 0.02% (2.01)% Waiver (i) 0.62% 0.75% 0.75% Portfolio turnover rate 33%(g) 43%(g) 96% - ---------------------------------------------------------------------------------------------------------------------
(a) The Fund 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 contingent deferred sales charge. (f) Had the Investment 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. 159 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA INTERNATIONAL STOCK FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED YEAR ENDED DECEMBER 31, FEBRUARY 29, AUGUST 31, -------------------------------------------------------- CLASS Z SHARES 2004 2003 (a) 2002 (b) 2001 2000 1999 1998 - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $11.40 $10.05 $12.03 $14.77 $22.81 $15.45 $13.70 - --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) --(c)(d) 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 2.44 1.27 (1.94) (2.74) (5.17) 9.00 1.76 --------- --------- --------- -------- -------- -------- --------- Total from investment operations 2.44 1.34 (1.94) (2.73) (5.21) 8.95 1.76 - --------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.04) -- (0.01) (0.01) -- -- -- From net realized gains -- -- -- -- (2.83) (1.59) (0.01) Return of capital -- -- (0.03) -- -- -- -- --------- --------- --------- -------- -------- -------- --------- Total distributions (0.04) -- (0.04) (0.01) (2.83) (1.59) (0.01) - --------------------------------------------------------------------------------------------------------------------------------- REDEMPTION FEES: Redemption fees added to paid-in capital --(c)(d) 0.01(c) -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $13.80 $11.40 $10.05 $12.03 $14.77 $22.81 $15.45 Total return (e) 21.46%(f)(g) 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) $503,931 $248,718 $143,332 $135,626 $175,316 $239,223 $134,193 Ratio of expenses to average net assets (h) 1.07%(i) 1.47%(i) 1.49% 1.56% 1.42% 1.48% 1.56% Ratio of net investment income (loss) to average net assets (h) --%(i)(j) 1.03%(i) (0.02)% 0.06% (0.19)% (0.35)% (0.02)% Waiver 0.14%(i) 0.12%(i) 0.12% -- -- -- -- Portfolio turnover rate 33%(g) 43%(g) 96% 130% 112% 94% 74% - ---------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were renamed 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 Investment 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) Rounds to less than 0.01%. 160 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA MID CAP GROWTH FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS A SHARES 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $18.09 $14.77 $15.15 - ------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) (0.11) (0.14) (0.02) Net realized and unrealized gain (loss) on investments 1.55 3.46 (0.36) ------------ ------------ ------------ Total from investment operations 1.44 3.32 (0.38) - ------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $19.53 $18.09 $14.77 Total return (d)(e)(f) 7.96% 22.48% (2.51)% - ------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $6,500 $4,525 $1,180 Ratio of expenses to average net assets (g)(h) 1.50% 1.60% 1.49% Ratio of net investment loss to average net assets (g)(h) (1.20)% (1.31)% (1.22)% Waiver (h) 0.01% 0.01% 0.01% Portfolio turnover rate 53%(f) 78%(f) 88% - -------------------------------------------------------------------------------------------------------------
(a) The Fund 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 Investment 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.
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS B SHARES 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $17.98 $14.76 $15.15 - ------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) (0.19) (0.22) (0.04) Net realized and unrealized gain (loss) on investments 1.55 3.44 (0.35) ------------ ------------ ------------ Total from investment operations 1.36 3.22 (0.39) - ------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $19.34 $17.98 $14.76 Total return (d)(e)(f) 7.56% 21.82% (2.57)% - ------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $5,772 $4,242 $3,383 Ratio of expenses to average net assets (g)(h) 2.31% 2.36% 2.32% Ratio of net investment loss to average net assets (g)(h) (2.01)% (2.06)% (2.05)% Waiver (h) 0.12% 0.12% 0.12% Portfolio turnover rate 53%(f) 78%(f) 88% - -------------------------------------------------------------------------------------------------------------
(a) The Fund 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 Investment 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. 161 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA MID CAP GROWTH FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) PERIOD ENDED FEBRUARY 29, CLASS C SHARES 2004 (a) - ----------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $17.88 - ----------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (b) (0.14) Net realized and unrealized gain on investments 1.63 ------------ Total from investment operations 1.49 - ----------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $19.37 Total return (c)(d)(e) 8.33% - ----------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $264 Ratio of expenses to average net assets (f)(g) 2.19% Ratio of net investment loss to average net assets (f)(g) (1.90)% Waiver (g) 0.09% Portfolio turnover rate 53%(e) - ----------------------------------------------------------------------- (a) Class C shares were initially offered on October 13, 2003. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no contingent deferred sales charge. (d) Had the Investment Advisor not waived a portion of expenses, total return would have been reduced. (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.
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS D SHARES 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $17.98 $14.76 $15.15 - ------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) (0.17) (0.21) (0.04) Net realized and unrealized gain (loss) on investments 1.54 3.43 (0.35) ------------ ------------ ------------ Total from investment operations 1.37 3.22 (0.39) - ------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $19.35 $17.98 $14.76 Total return (d)(e)(f) 7.62% 21.82% (2.57)% - ------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $803 $737 $433 Ratio of expenses to average net assets (g)(h) 2.18% 2.27% 2.32% Ratio of net investment loss to average net assets (g)(h) (1.88)% (1.97)% (2.05)% Waiver (h) 0.09% 0.09% 0.09% Portfolio turnover rate 53%(f) 78%(f) 88% - -------------------------------------------------------------------------------------------------------------
(a) The Fund 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 contingent deferred sales charge. (e) Had the Investment 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. 162 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA MID CAP GROWTH FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS G SHARES 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $17.98 $14.77 $15.15 - ------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) (0.21) (0.23) (0.04) Net realized and unrealized gain (loss) on investments 1.54 3.44 (0.34) ------------ ------------ ------------ Total from investment operations 1.33 3.21 (0.38) - ------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $19.31 $17.98 $14.77 Total return (d)(e) 7.40% 21.73% (2.51)% - ------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $809 $806 $753 Ratio of expenses to average net assets (f)(g) 2.53% 2.47% 2.35% Ratio of net investment loss to average net assets (f)(g) (2.23)% (2.17)% (2.08)% Portfolio turnover rate 53%(e) 78%(e) 88% - -------------------------------------------------------------------------------------------------------------
(a) The Fund 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.
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS T SHARES 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $18.12 $14.79 $15.15 - ------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) (0.11) (0.12) (0.02) Net realized and unrealized gain (loss) on investments 1.57 3.45 (0.34) ------------ ------------ ------------ Total from investment operations 1.46 3.33 (0.36) - ------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $19.58 $18.12 $14.79 Total return (d)(e) 8.06% 22.52% (2.38)% - ------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $31,146 $29,920 $25,966 Ratio of expenses to average net assets (f)(g) 1.48% 1.46% 1.45% Ratio of net investment loss to average net assets (f)(g) (1.18)% (1.16)% (1.18)% Portfolio turnover rate 53%(e) 78%(e) 88% - -------------------------------------------------------------------------------------------------------------
(a) The Fund 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. 163 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA MID CAP GROWTH FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED YEAR ENDED DECEMBER 31, FEBRUARY 29, AUGUST 31, ----------------------------------------------------------- CLASS Z SHARES 2004 2003 (a) 2002 (b) 2001 2000 1999 1998 - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $18.17 $14.79 $19.60 $25.99 $29.93 $23.62 $20.26 - --------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (0.07)(c) (0.08)(c) (0.13)(c) (0.11) (0.10) (0.16) (0.03) Net realized and unrealized gain (loss) on investments 1.57 3.46 (4.68) (5.35) 4.45 8.74 3.40 ---------- -------- -------- --------- ---------- --------- -------- Total from investment operations 1.50 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 $19.67 $18.17 $14.79 $19.60 $25.99 $29.93 $23.62 Total return (e) 8.26%(f)(g) 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) $1,025,036 $998,943 $807,342 $786,071 $1,095,525 $918,322 $969,359 Ratio of expenses to average net assets (h) 1.02%(i) 1.09%(i) 1.12% 1.08% 0.99% 1.09% 1.03% Ratio of net investment loss to average net assets (h) (0.72)%(i) (0.80)%(i) (0.85)% (0.49)% (0.38)% (0.64)% (0.09)% Waiver 0.05%(i) 0.05%(i) 0.05% -- -- -- -- Portfolio turnover rate 53%(g) 78%(g) 88% 186% 169% 135% 135% - ---------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were renamed 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 Investment 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. 164 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA SMALL CAP GROWTH FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED YEAR ENDED DECEMBER 31, FEBRUARY 29, AUGUST 31, ------------------------------------------------------------ CLASS Z SHARES 2004 2003 (a) 2002 (b) 2001 2000 1999 1998 - ---------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $21.62 $16.30 $22.20 $25.87 $27.26 $17.43 $16.65 - ---------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (0.13)(c) (0.13)(c) (0.17)(c) (0.13) (0.10) (0.14) (0.09) Net realized and unrealized gain (loss) on investments 3.34 5.45 (5.73) (3.54) 1.75 10.45 0.87 --------- --------- --------- --------- --------- --------- -------- Total from investment operations 3.21 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 $24.83 $21.62 $16.30 $22.20 $25.87 $27.26 $17.43 Total return (e) 14.85%(f) 32.64%(f) (26.58)% (14.19)% 5.85% 59.15% 4.69% - ---------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $784,045 $637,616 $493,031 $617,966 $518,970 $290,374 $160,472 Ratio of expenses to average net assets (g) 1.21%(h) 1.28%(h) 1.24% 1.23% 1.22% 1.30% 1.34% Ratio of net investment loss to average net assets (g) (1.06)%(h) (1.09)%(h) (0.90)% (0.71)% (0.44)% (0.84)% (0.68)% Portfolio turnover rate 64%(f) 79%(f) 109% 129% 145% 188% 158% - ----------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were renamed 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. 165 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA REAL ESTATE EQUITY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS A SHARES 2004 2003 (a) 2002 (b) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $21.04 $17.80 $17.01 - --------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.40 0.36(d) 0.26 Net realized and unrealized gain on investments 3.59 3.11(d) 0.78 ------------ ------------ ------------ Total from investment operations 3.99 3.47 1.04 - --------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.36) (0.23) (0.25) From net realized gains (0.18) -- -- ------------ ------------ ------------ Total distributions (0.54) (0.23) (0.25) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $24.49 $21.04 $17.80 Total return (e)(f) 19.28% 19.62% 6.10% - --------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $36,969 $12,364 $905 Ratio of expenses to average net assets (g)(h) 1.20% 1.55% 1.43% Ratio of net investment income to average net assets (g)(h) 3.55% 2.70%(d) 4.81% Portfolio turnover rate 7%(f) 33%(f) 53% - ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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.
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS A SHARES 2004 2003 (a) 2002 (b) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $21.03 $17.82 $17.01 - --------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.34 0.24(d) 0.22 Net realized and unrealized gain on investments 3.58 3.12(d) 0.81 ------------ ------------ ------------ Total from investment operations 3.92 3.36 1.03 - --------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.27) (0.15) (0.22) From net realized gains (0.18) -- -- ------------ ------------ ------------ Total distributions (0.45) (0.15) (0.22) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $24.50 $21.03 $17.82 Total return (e)(f) 18.86% 18.97% 6.09% - --------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $9,044 $4,776 $1,074 Ratio of expenses to average net assets (g)(h) 2.01% 2.37% 2.18% Ratio of net investment income to average net assets (g)(h) 2.99% 1.86%(d) 4.06% Portfolio turnover rate 7%(f) 33%(f) 53% - ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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. 166 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA REAL ESTATE EQUITY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) PERIOD ENDED FEBRUARY 29, CLASS C SHARES 2004 (a) - ------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $21.99 - ------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (b) 0.19 Net realized and unrealized gain on investments 2.59 ------------ Total from investment operations 2.78 - ------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.10) From net realized gains (0.18) ------------ Total distributions (0.28) - ------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $24.49 Total return (c)(d) 12.71% - ------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $1,524 Ratio of expenses to average net assets (e)(f) 1.94% Ratio of net investment income to average net assets (e)(f) 2.08% Portfolio turnover rate 7%(d) - ------------------------------------------------------------------------- (a) Class C shares were initially offered on October 13, 2003. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized.
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS D SHARES 2004 2003 (a) 2002 (b) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $21.03 $17.82 $17.01 - --------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.36 0.27(d) 0.21 Net realized and unrealized gain on investments 3.57 3.10(d) 0.82 ------------ ------------ ------------ Total from investment operations 3.93 3.37 1.03 - --------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.28) (0.16) (0.22) From net realized gains (0.18) -- -- ------------ ------------ ------------ Total distributions (0.46) (0.16) (0.22) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $24.50 $21.03 $17.82 Total return (e)(f) 18.93% 18.99% 6.09% - --------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $4,892 $3,466 $365 Ratio of expenses to average net assets (g)(h) 1.95% 2.30% 2.18% Ratio of net investment income to average net assets (g)(h) 3.18% 2.02%(d) 4.06% Portfolio turnover rate 7%(f) 33%(f) 53% - ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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 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. 167 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA REAL ESTATE EQUITY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED YEAR ENDED DECEMBER 31, FEBRUARY 29, AUGUST 31, ---------------------------------------------------------- CLASS Z SHARES 2004 2003 (a) 2002 (b) 2001 2000 1999 1998 - ---------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $21.06 $17.81 $18.04 $17.89 $14.57 $15.76 $18.80 - ---------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income 0.47(c) 0.39(c)(d) 0.82(c) 0.79 0.81 0.82 0.75 Net realized and unrealized gain (loss) on investments 3.56 3.14(d) (0.25) 0.15 3.32 (1.19) (3.04) ----------- --------- --------- --------- --------- --------- --------- Total from investment operations 4.03 3.53 0.57 0.94 4.13 (0.37) (2.29) - ---------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.40) (0.28) (0.71) (0.72) (0.75) (0.71) (0.66) From net realized gains (0.18) -- (0.09) (0.07) (0.06) (0.11) (0.09) ----------- --------- --------- --------- --------- --------- --------- Total distributions (0.58) (0.28) (0.80) (0.79) (0.81) (0.82) (0.75) - ---------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $24.51 $21.06 $17.81 $18.04 $17.89 $14.57 $15.76 Total return (e) 19.46%(f) 20.01%(f) 3.12% 5.41% 28.84% (2.45)% (12.33)% - ---------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $1,035,547 $884,747 $774,646 $621,590 $436,764 $241,716 $164,172 Ratio of expenses to average net assets (g) 0.97%(h) 1.08%(h) 0.94% 0.95% 0.96% 0.99% 1.01% Ratio of net investment income to average net assets (g) 4.17%(h) 3.09%(d)(h) 5.30% 4.65% 5.16% 5.66% 4.60% Portfolio turnover rate 7%(f) 33%(f) 53% 41% 25% 29% 6% - ----------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were renamed 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. 168 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA TECHNOLOGY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS A SHARES 2004 2003 (a) 2002 (b) - -------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $5.91 $3.79 $3.82 - -------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) (0.07) (0.04) (0.01) Net realized and unrealized gain (loss) on investments 1.52 2.16 (0.02) ------------ ------------ ------------ Total from investment operations 1.45 2.12 (0.03) - -------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $7.36 $5.91 $3.79 Total return (d)(e)(f) 24.53% 55.94% (0.79)% - -------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $1,833 $376 $1 Ratio of expenses to average net assets (g)(h) 1.90% 1.90% 1.76% Ratio of net investment loss to average net assets (g)(h) (1.80)% (1.35)% (1.35)% Reimbursement (h) 0.27% 3.06% 1.24% Portfolio turnover rate 186%(f) 523%(f) 512% - --------------------------------------------------------------------------------------------------------------
(a) The Fund 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 Investment Advisor not 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.
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS B SHARES 2004 2003 (a) 2002 (b) - -------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $5.86 $3.78 $3.82 - -------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) (0.09) (0.07) (0.01) Net realized and unrealized gain (loss) on investments 1.51 2.15 (0.03) ------------ ------------ ------------ Total from investment operations 1.42 2.08 (0.04) - -------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $7.28 $5.86 $3.78 Total return (d)(e)(f) 24.23% 55.03% (1.05)% - -------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $3,213 $1,246 $7 Ratio of expenses to average net assets (g)(h) 2.65% 2.65% 2.51% Ratio of net investment loss to average net assets (g)(h) (2.52)% (2.11)% (2.10)% Reimbursement (h) 0.29% 2.40% 1.24% Portfolio turnover rate 186%(f) 523%(f) 512% - --------------------------------------------------------------------------------------------------------------
(a) The Fund 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 Investment Advisor not 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. 169 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA TECHNOLOGY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) PERIOD ENDED FEBRUARY 29, CLASS C SHARES 2004 (a) - ----------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $6.48 - ----------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (b) (0.07) Net realized and unrealized gain on investments 0.87 ------------ Total from investment operations 0.80 - ----------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $7.28 Total return (c)(d)(e) 12.35% - ----------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $230 Ratio of expenses to average net assets (f)(g) 2.65% Ratio of net investment loss to average net assets (f)(g) (2.59)% Reimbursement (g) 0.76% Portfolio turnover rate 186%(e) - ----------------------------------------------------------------------- (a) Class C shares were initially offered on October 13, 2003. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no contingent deferred sales charge. (d) Had the Investment Advisor not reimbursed a portion of expenses, total return would have been reduced. (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.
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS D SHARES 2004 2003 (a) 2002 (b) - -------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $5.88 $3.78 $3.82 - -------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) (0.08) (0.07) (0.01) Net realized and unrealized gain (loss) on investments 1.51 2.17 (0.03) ------------ ------------ ------------ Total from investment operations 1.43 2.10 (0.04) - -------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $7.31 $5.88 $3.78 Total return (d)(e)(f) 24.32% 55.56% (1.05)% - -------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $42 $15 $1 Ratio of expenses to average net assets (g)(h) 2.65% 2.65% 2.51% Ratio of net investment loss to average net assets (g)(h) (2.50)% (2.13)% (2.10)% Reimbursement (h) 0.89% 4.00% 1.24% Portfolio turnover rate 186%(f) 523%(f) 512% - --------------------------------------------------------------------------------------------------------------
(a) The Fund 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 contingent deferred sales charge. (e) Had the Investment Advisor not 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. 170 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA TECHNOLOGY FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED YEAR ENDED DECEMBER 31, PERIOD ENDED FEBRUARY 29, AUGUST 31, ------------------------ DECEMBER 31, CLASS Z SHARES 2004 2003 (a) 2002 (b) 2001 2000 (c) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $5.93 $3.79 $6.13 $8.63 $10.00 - ----------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss) (0.05)(d) (0.04)(d) (0.06)(d) (0.08) 0.01 Net realized and unrealized gain (loss) on investments 1.52 2.18 (2.28) (2.42) (1.37) -------- -------- --------- --------- --------- Total from investment operations 1.47 2.14 (2.34) (2.50) (1.36) - ----------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income -- -- -- -- (0.01) - ----------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $7.40 $5.93 $3.79 $6.13 $8.63 Total return (e)(f) 24.79%(g) 56.46%(g) (38.17)% (28.97)% (13.78)%(g) - ----------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $34,999 $19,663 $8,055 $10,385 $4,327 Ratio of expenses to average net assets (h) 1.65%(i) 1.65%(i) 1.65% 1.69% 1.48%(i) Ratio of net investment income (loss) to average net assets (h) (1.52)%(i) (1.19)%(i) (1.24)% (1.26)% 0.99%(i) Reimbursement 0.43%(i) 2.73%(i) 1.33% 1.13% 7.49%(i) Portfolio turnover rate 186%(g) 523%(g) 512% 413% 63%(g) - -----------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were renamed 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 Investment Advisor not 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. 171 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA STRATEGIC INVESTOR FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS A SHARES 2004 2003 (a) 2002 (b) - ----------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $15.95 $13.13 $12.72 - ----------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.01 0.06 0.01 Net realized and unrealized gain on investments and foreign currency 2.72 2.76 0.40 ------------ ------------ ------------ Total from investment operations 2.73 2.82 0.41 - ----------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.07) -- -- - ----------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $18.61 $15.95 $13.13 Total return (d)(e) 17.15% 21.48% 3.22% - ----------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $74,187 $60,112 $53,526 Ratio of expenses to average net assets (f)(g) 1.23% 1.30% 1.21% Ratio of net investment income to average net assets (f)(g) 0.12% 0.60% 0.64% Portfolio turnover rate 59%(e) 68%(e) 188% - -----------------------------------------------------------------------------------------------------------------------
(a) The Fund 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.
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS B SHARES 2004 2003 (a) 2002 (b) - ----------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $15.82 $13.10 $12.72 - ----------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) (0.05) (0.03) (0.01) Net realized and unrealized gain on investments and foreign currency 2.71 2.75 0.39 ------------ ------------ ------------ Total from investment operations 2.66 2.72 0.38 - ----------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $18.48 $15.82 $13.10 Total return (d)(e)(f) 16.81% 20.76% 2.99% - ----------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $8,513 $3,398 $2,350 Ratio of expenses to average net assets (g)(h) 1.95% 2.22% 2.36% Ratio of net investment loss to average net assets (g)(h) (0.62)% (0.33)% (0.51)% Waiver (h) 0.23% 0.23% 0.23% Portfolio turnover rate 59%(f) 68%(f) 188% - -----------------------------------------------------------------------------------------------------------------------
(a) The Fund 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 Investment 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. 172 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA STRATEGIC INVESTOR FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) PERIOD ENDED FEBRUARY 29, CLASS C SHARES 2004 (a) - ------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $16.42 - ------------------------------------------------------------------------ INCOME FROM INVESTMENT OPERATIONS: Net investment loss (b) (0.07) Net realized and unrealized gain on investments and foreign currency 2.13 ---------- Total from investment operations 2.06 - ----------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $18.48 Total return (c)(d)(e) 12.55% - ----------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $3,149 Ratio of expenses to average net assets (f)(g) 2.28% Ratio of net investment loss to average net assets (f)(g) (1.05)% Waiver (g) 0.15% Portfolio turnover rate 59%(e) - ----------------------------------------------------------------------- (a) Class C shares were initially offered on October 13, 2003. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming no contingent deferred sales charge. (d) Had the Investment Advisor not waived a portion of expenses, total return would have been reduced. (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.
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS D SHARES 2004 2003 (a) 2002 (b) - ------------------------------------------------------------------------------------------------------------------------ NET ASSET VALUE, BEGINNING OF PERIOD $15.81 $13.11 $12.72 - ------------------------------------------------------------------------------------------------------------------------ INCOME FROM INVESTMENT OPERATIONS: Net investment loss (c) (0.05) (0.05) (0.01) Net realized and unrealized gain on investments and foreign currency 2.70 2.75 0.40 ------------ ------------ ------------ Total from investment operations 2.65 2.70 0.39 - ------------------------------------------------------------------------------------------------------------------------ NET ASSET VALUE, END OF PERIOD $18.46 $15.81 $13.11 Total return (d)(e)(f) 16.76% 20.59% 3.07% - ------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $821 $704 $355 Ratio of expenses to average net assets (g)(h) 1.93% 2.34% 2.28% Ratio of net investment loss to average net assets (g)(h) (0.57)% (0.48)% (0.43)% Waiver (h) 0.15% 0.15% 0.15% Portfolio turnover rate 59%(f) 68%(f) 188% - ------------------------------------------------------------------------------------------------------------------------
(a) The Fund 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 contingent deferred sales charge. (e) Had the Investment 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. 173 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA STRATEGIC INVESTOR FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED YEAR ENDED DECEMBER 31, PERIOD ENDED FEBRUARY 29, AUGUST 31, ---------------------------- DECEMBER 31, CLASS Z SHARES 2004 2003 (a) 2002 (b) 2001 2000 (c) - ------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $15.98 $13.14 $14.52 $11.23 $10.00 - ---------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income 0.03(d) 0.08(d) 0.10(d) 0.05 0.02 Net realized and unrealized gain (loss) on investments and foreign currency 2.74 2.76 (1.35) 3.29 1.23 ----------- ----------- ----------- ----------- --------- Total from investment operations 2.77 2.84 (1.25) 3.34 1.25 - ---------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.11) -- (0.11) (0.05) (0.02) From net realized gains -- -- (0.02) -- -- ----------- ----------- ----------- ----------- --------- Total distributions (0.11) -- (0.13) (0.05) (0.02) - ---------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $18.64 $15.98 $13.14 $14.52 $11.23 Total return (e) 17.36%(f)(g) 21.61%(f)(g) (8.56)%(f) 29.76% 12.25%(f)(g) - ---------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $259,830 $227,454 $209,610 $139,504 $9,526 Ratio of expenses to average net assets (h) 0.98%(i) 1.08%(i) 1.23% 1.13% 1.34%(i) Ratio of net investment income to average net assets (h) 0.37%(i) 0.82%(i) 0.62% 0.71% 1.92%(i) Waiver 0.03%(i) 0.03%(i) 0.03% -- 3.97%(i) Portfolio turnover rate 59%(g) 68%(g) 188% 278% 64%(g) - ----------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were renamed 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 Investment 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. 174 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA BALANCED FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS A SHARES 2004 2003 (a) 2002 (b) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $19.18 $17.52 $17.58 - --------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.15 0.16 0.03 Net realized and unrealized gain on investments 1.72 1.64 --(d) ------------ ------------ ------------ Total from investment operations 1.87 1.80 0.03 - --------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.13) (0.14) (0.09) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $20.92 $19.18 $17.52 Total return (e)(f) 9.79% 10.35% 0.19% - --------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $1,946 $670 $146 Ratio of expenses to average net assets (g)(h) 1.09% 1.42% 1.17% Ratio of net investment income to average net assets (g)(h) 1.45% 1.32% 2.03% Portfolio turnover rate 77%(f) 110%(f) 98% - ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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.
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS B SHARES 2004 2003 (a) 2002 (b) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $19.16 $17.52 $17.58 - --------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.07 0.07 0.02 Net realized and unrealized gain (loss) on investments 1.73 1.65 (0.01) ------------ ------------ ------------ Total from investment operations 1.80 1.72 0.01 - --------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.06) (0.08) (0.07) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $20.90 $19.16 $17.52 Total return (d)(e) 9.40% 9.83% 0.06% - --------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $5,755 $3,349 $608 Ratio of expenses to average net assets (f)(g) 1.80% 2.17% 1.92% Ratio of net investment income to average net assets (f)(g) 0.75% 0.59% 1.28% Portfolio turnover rate 77%(e) 110%(e) 98% - ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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. 175 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA BALANCED FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) PERIOD ENDED FEBRUARY 29, CLASS C SHARES 2004 (a) - ------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $19.59 - ------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (b) 0.06 Net realized and unrealized gain on investments 1.29 ------------ Total from investment operations 1.35 - ------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.04) - ------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $20.90 Total return (c)(d) 6.92% - ------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $527 Ratio of expenses to average net assets (e)(f) 1.78% Ratio of net investment income to average net assets (e)(f) 0.86% Portfolio turnover rate 77%(d) - ------------------------------------------------------------------------- (a) Class C shares were initially offered on October 13, 2003. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (d) Not annualized. (e) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (f) Annualized.
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS D SHARES 2004 2003 (a) 2002 (b) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $19.17 $17.51 $17.58 - --------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.08 0.11 0.02 Net realized and unrealized gain (loss) on investments 1.71 1.64 (0.02) ------------ ------------ ------------ Total from investment operations 1.79 1.75 -- - --------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.07) (0.09) (0.07) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $20.89 $19.17 $17.51 Total return (d)(e) 9.37% 10.01% 0.01% - --------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $520 $770 $446 Ratio of expenses to average net assets (f)(g) 1.81% 1.87% 1.92% Ratio of net investment income to average net assets (f)(g) 0.82% 0.89% 1.28% Portfolio turnover rate 77%(e) 110%(e) 98% - ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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 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. 176 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA BALANCED FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED YEAR ENDED DECEMBER 31, FEBRUARY 29, AUGUST 31, -------------------------------------------------------------- CLASS Z SHARES 2004 2003 (a) 2002 (b) 2001 2000 1999 1998 - ---------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $19.19 $17.51 $20.67 $22.96 $24.72 $23.17 $21.42 - ---------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income 0.18(c) 0.24(c) 0.47(c) 0.57(d) 0.67 0.69 0.72 Net realized and unrealized gain (loss) on investments 1.72 1.64 (3.13) (2.27)(d) (0.41) 2.21 3.52 --------- --------- --------- --------- ----------- ---------- --------- Total from investment operations 1.90 1.88 (2.66) (1.70) 0.26 2.90 4.24 - ---------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.18) (0.20) (0.50) (0.59) (0.68) (0.69) (0.73) From net realized gains -- -- -- -- (1.34) (0.66) (1.76) --------- --------- --------- --------- ----------- ---------- --------- Total distributions (0.18) (0.20) (0.50) (0.59) (2.02) (1.35) (2.49) - ---------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $20.91 $19.19 $17.51 $20.67 $22.96 $24.72 $23.17 Total return (e) 9.99%(f) 10.81%(f) (12.97)% (7.40)% 0.82% 12.70% 20.07% - ---------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $613,337 $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) 0.77%(h) 0.70% 0.67% 0.65% 0.66% 0.67% Ratio of net investment income to average net assets (g) 1.78%(h) 2.03%(h) 2.50% 2.70%(d) 2.73% 2.85% 3.22% Portfolio turnover rate 77%(f) 110%(f) 98% 111% 105% 133% 128% - ----------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were renamed 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. 177 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA SHORT TERM BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS A SHARES 2004 2003 (a) 2002 (b) - -------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $8.62 $8.67 $8.63 - -------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.08 0.10 0.04 Net realized and unrealized gain (loss) on investments and futures contracts 0.08 (0.03) 0.04 ------------ ------------ ------------ Total from investment operations 0.16 0.07 0.08 - -------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.08) (0.12) (0.04) - -------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $8.70 $8.62 $8.67 Total return (d)(e)(f) 1.89% 0.82% 0.94% - -------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $31,408 $37,261 $5,543 Ratio of expenses to average net assets (g)(h) 0.94% 1.00% 1.00% Ratio of net investment income to average net assets (g)(h) 1.92% 1.78% 3.53% Reimbursement (h) 0.02% 0.05% 0.02% Portfolio turnover rate 29%(f) 137%(f) 182% - --------------------------------------------------------------------------------------------------------------------------------
(a) The Fund 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 Investment Advisor not 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.
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS B SHARES 2004 2003 (a) 2002 (b) - -------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $8.62 $8.67 $8.63 - -------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.05 0.07 0.03 Net realized and unrealized gain (loss) on investments and futures contracts 0.08 (0.04) 0.04 ------------ ------------ ------------ Total from investment operations 0.13 0.03 0.07 - -------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.05) (0.08) (0.03) - -------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $8.70 $8.62 $8.67 Total return (d)(e)(f) 1.49% 0.35% 0.77% - -------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $24,706 $26,965 $6,261 Ratio of expenses to average net assets (g)(h) 1.69% 1.75% 1.75% Ratio of net investment income to average net assets (g)(h) 1.15% 1.16% 2.78% Reimbursement (h) 0.10% 0.15% 0.04% Portfolio turnover rate 29%(f) 137%(f) 182% - --------------------------------------------------------------------------------------------------------------------------------
(a) The Fund 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 Investment Advisor not 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. 178 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA SHORT TERM BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) PERIOD ENDED FEBRUARY 29, CLASS C SHARES 2004 (a) - ---------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $8.67 - ---------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (b) 0.06 Net realized and unrealized gain (loss) on investments and futures contracts 0.02 ----------- Total from investment operations 0.08 - ---------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.05) - ---------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $8.70 Total return (c)(d)(e) 0.98% - ---------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $1,859 Ratio of expenses to average net assets (f)(g) 1.08% Ratio of net investment income to average net assets (f)(g) 1.72% Reimbursement (g) 0.06% Waiver (g)(h) 0.60% Portfolio turnover rate 29%(e) - ---------------------------------------------------------------------------- (a) Class C shares were initially offered on October 13, 2003. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (d) Had the Investment Advisor/Distributor not waived or reimbursed a portion of expenses, total return would have been reduced. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. (h) Amount represents voluntary waivers of service and distribution fees.
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS D SHARES 2004 2003 (a) 2002 (b) - -------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $8.62 $8.67 $8.63 - -------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.08 0.10 0.04 Net realized and unrealized gain (loss) on investments and futures contracts 0.08 (0.04) 0.04 ------------ ------------ ------------ Total from investment operations 0.16 0.06 0.08 - -------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.08) (0.11) (0.04) - -------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $8.70 $8.62 $8.67 Total return (d)(e)(f) 1.82% 0.72% 0.88% - -------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $15,919 $18,512 $5,223 Ratio of expenses to average net assets (g)(h) 1.08% 1.15% 1.15% Ratio of net investment income to average net assets (g)(h) 1.76% 1.71% 3.38% Reimbursement (h) --%(i) 0.18% 0.04% Waiver (h)(j) 0.60% 0.60% 0.60% Portfolio turnover rate 29%(f) 137%(f) 182% - --------------------------------------------------------------------------------------------------------------------------------
(a) The Fund 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 contingent deferred sales charge. (e) Had the Investment 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) Rounds to less than 0.01%. (j) Amounts represent voluntary waivers of service and distribution fees. 179 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA SHORT TERM BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS G SHARES 2004 2003 (a) 2002 (b) - -------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $8.62 $8.67 $8.63 - -------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.06 0.09 0.03 Net realized and unrealized gain (loss) on investments and futures contracts 0.08 (0.05) 0.04 ------------ ------------ ------------ Total from investment operations 0.14 0.04 0.07 - -------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.06) (0.09) (0.03) - -------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $8.70 $8.62 $8.67 Total return (d)(e)(f) 1.59% 0.47% 0.85% - -------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $1,285 $1,614 $1,874 Ratio of expenses to average net assets (g)(h) 1.49% 1.55% 1.55% Ratio of net investment income to average net assets (g)(h) 1.34% 1.58% 2.98% Reimbursement (h) 0.23% 0.10% 0.05% Portfolio turnover rate 29%(f) 137%(f) 182% - --------------------------------------------------------------------------------------------------------------------------------
(a) The Fund 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 Investment Advisor/Distributor not 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.
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS T SHARES 2004 2003 (a) 2002 (b) - -------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $8.62 $8.67 $8.63 - -------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.09 0.13 0.04 Net realized and unrealized gain (loss) on investments and futures contracts 0.08 (0.05) 0.04 ------------ ------------ ------------ Total from investment operations 0.17 0.08 0.08 - -------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.09) (0.13) (0.04) - -------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $8.70 $8.62 $8.67 Total return (d)(e)(f) 1.93% 0.93% 0.95% - -------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $25,762 $28,230 $30,859 Ratio of expenses to average net assets (g)(h) 0.84% 0.90% 0.90% Ratio of net investment income to average net assets (g)(h) 2.00% 2.25% 3.63% Reimbursement (h) 0.07% 0.04% 0.02% Portfolio turnover rate 29%(f) 137%(f) 182% - --------------------------------------------------------------------------------------------------------------------------------
(a) The Fund 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 Investment Advisor/Distributor not 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. 180 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA SHORT TERM BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED YEAR ENDED DECEMBER 31, FEBRUARY 29, AUGUST 31, ---------------------------------------------------------- CLASS Z SHARES 2004 2003 (a) 2002 (b) 2001 2000 1999 1998 - ---------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $8.62 $8.67 $8.55 $8.36 $8.20 $8.39 $8.29 - ---------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income 0.09(c) 0.14(c) 0.32(c) 0.46(d) 0.42 0.33 0.38 Net realized and unrealized gain (loss) on investments and futures contracts 0.08 (0.05) 0.14 0.21(d) 0.16 (0.18) 0.14 --------- --------- --------- -------- -------- -------- -------- Total from investment operations 0.17 0.09 0.46 0.67 0.58 0.15 0.52 - ---------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.09) (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 (0.09) (0.14) (0.34) (0.48) (0.42) (0.34) (0.42) - ---------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $8.70 $8.62 $8.67 $8.55 $8.36 $8.20 $8.39 Total return (f) 2.02%(g)(h) 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) $442,544 $436,593 $317,588 $62,930 $35,856 $38,072 $40,578 Ratio of expenses to average net assets (i) 0.66%(j) 0.66%(j) 0.67% 0.75% 0.88% 0.91% 0.89% Ratio of net investment income to average net assets (i) 2.19%(j) 2.36%(j) 3.86% 5.29%(d) 5.09% 4.09% 4.55% Reimbursement 0.04%(j) 0.07%(j) -- 0.16% 0.02% -- -- Portfolio turnover rate 29%(g) 137%(g) 182% 137% 147% 211% 182% - ----------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were renamed 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 Investment Advisor not 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. 181 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA FIXED INCOME SECURITIES FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS A SHARES 2004 2003 (a) 2002 (b) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $13.34 $13.52 $13.42 - --------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.24 0.26 0.11 Net realized and unrealized gain (loss) on investments 0.33 (0.14) 0.08 ------------ ------------ ------------ Total from investment operations 0.57 0.12 0.19 - --------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.26) (0.30) (0.09) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $13.65 $13.34 $13.52 Total return (d)(e) 4.28% 0.84% 1.41% - --------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $9,189 $7,503 $945 Ratio of expenses to average net assets (f)(g) 1.06% 1.44% 0.92% Ratio of net investment income to average net assets (f)(g) 3.62% 2.84% 4.78% Portfolio turnover rate 82%(e) 161%(e) 103% - ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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.
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS B SHARES 2004 2003 (a) 2002 (b) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $13.34 $13.52 $13.42 - --------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.19 0.20 0.09 Net realized and unrealized gain (loss) on investments 0.32 (0.15) 0.08 ------------ ------------ ------------ Total from investment operations 0.51 0.05 0.17 - --------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.20) (0.23) (0.07) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $13.65 $13.34 $13.52 Total return (d)(e) 3.88% 0.34% 1.27% - --------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $4,716 $4,410 $1,466 Ratio of expenses to average net assets (f)(g) 1.84% 2.10% 1.71% Ratio of net investment income to average net assets (f)(g) 2.85% 2.22% 3.99% Portfolio turnover rate 82%(e) 161%(e) 103% - ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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. 182 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA FIXED INCOME SECURITIES FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) PERIOD ENDED FEBRUARY 29, CLASS C SHARES 2004 (a) - ------------------------------------------------------------------------ NET ASSET VALUE, BEGINNING OF PERIOD $13.50 - ------------------------------------------------------------------------ INCOME FROM INVESTMENT OPERATIONS: Net investment income (b) 0.16 Net realized and unrealized gain on investments 0.16 ----------- Total from investment operations 0.32 - ------------------------------------------------------------------------ LESS DISTRIBUTIONS: From net investment income (0.17) - ------------------------------------------------------------------------ NET ASSET VALUE, END OF PERIOD $13.65 Total return (c)(d)(e) 2.39% - ------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $132 Ratio of expenses to average net assets (f)(g) 1.62% Ratio of net investment income to average net assets (f)(g) 2.91% Waiver (g)(h) 0.15% Portfolio turnover rate 82%(e) - ------------------------------------------------------------------------ (a) Class C shares were initially offered on October 13, 2003. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (d) Had the Distributor not waived a portion of expenses, total return would have been reduced. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. (h) Amount represents voluntary waivers of service and distribution fees.
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS D SHARES 2004 2003 (a) 2002 (b) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $13.34 $13.52 $13.42 - --------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.20 0.22 0.09 Net realized and unrealized gain (loss) on investments 0.33 (0.15) 0.08 ------------ ------------ ------------ Total from investment operations 0.53 0.07 0.17 - --------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.22) (0.25) (0.07) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $13.65 $13.34 $13.52 Total return (d)(e)(f) 3.97% 0.51% 1.30% - --------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $2,458 $2,632 $427 Ratio of expenses to average net assets (g)(h) 1.66% 1.79% 1.58% Ratio of net investment income to average net assets (g)(h) 3.04% 2.44% 4.12% Waiver (h)(i) 0.15% 0.15% 0.15% Portfolio turnover rate 82%(f) 161%(f) 103% - ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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 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 service and distribution fees. 183 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA FIXED INCOME SECURITIES FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED YEAR ENDED DECEMBER 31, FEBRUARY 29, AUGUST 31, -------------------------------------------------------------- CLASS Z SHARES 2004 2003 (a) 2002 (b) 2001 2000 1999 1998 - ---------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $13.34 $13.52 $13.22 $12.97 $12.44 $13.42 $13.41 - ---------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income 0.26(c) 0.33(c) 0.67(c) 0.77(d) 0.82 0.78 0.83 Net realized and unrealized gain (loss) on investments 0.33 (0.16) 0.31 0.26(d) 0.53 (0.98) 0.14 --------- --------- --------- --------- --------- --------- --------- Total from investment operations 0.59 0.17 0.98 1.03 1.35 (0.20) 0.97 - ---------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.28) (0.35) (0.68) (0.78) (0.82) (0.78) (0.83) From net realized gains -- -- -- -- -- --(e) (0.13) --------- --------- --------- --------- --------- --------- --------- Total distributions (0.28) (0.35) (0.68) (0.78) (0.82) (0.78) (0.96) - ---------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $13.65 $13.34 $13.52 $13.22 $12.97 $12.44 $13.42 Total return (f) 4.43%(g) 1.26%(g) 7.65% 8.13% 11.27% (1.50)% 7.44% - ---------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $388,982 $506,046 $547,524 $465,743 $378,799 $397,147 $422,330 Ratio of expenses to average net assets (h) 0.76%(i) 0.77%(i) 0.67% 0.66% 0.66% 0.64% 0.65% Ratio of net investment income to average net assets (h) 3.91%(i) 3.66%(i) 5.03% 5.83%(d) 6.53% 6.03% 6.15% Portfolio turnover rate 82%(g) 161%(g) 103% 110% 105% 155% 107% - ----------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were renamed 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. 184 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA NATIONAL MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS A SHARES 2004 2003 (a) 2002 (b) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $10.11 $10.28 $10.22 - --------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.18 0.24 0.06 Net realized and unrealized gain (loss) on investments 0.45 (0.16) 0.10 ------------ ------------ ------------ Total from investment operations 0.63 0.08 0.16 - --------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.18) (0.24) (0.06) From net realized gains (0.08) (0.01) (0.04) ------------ ------------ ------------ Total distributions (0.26) (0.25) (0.10) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $10.48 $10.11 $10.28 Total return (d)(e)(f) 6.28% 0.75% 1.59% - --------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $969 $398 $67 Ratio of expenses to average net assets (g)(h) 0.90% 0.90% 0.90% Ratio of net investment income to average net assets (g)(h) 3.42% 3.49% 3.85% Reimbursement (h) 1.63% 2.87% 0.56% Portfolio turnover rate 9%(f) 12%(f) 43% - ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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 Investment Advisor not 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.
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS B SHARES 2004 2003 (a) 2002 (b) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $10.11 $10.28 $10.22 - --------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.14 0.19 0.05 Net realized and unrealized gain (loss) on investments 0.45 (0.16) 0.10 ------------ ------------ ------------ Total from investment operations 0.59 0.03 0.15 - --------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.14) (0.19) (0.05) From net realized gains (0.08) (0.01) (0.04) ------------ ------------ ------------ Total distributions (0.22) (0.20) (0.09) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $10.48 $10.11 $10.28 Total return (d)(e)(f) 5.89% 0.25% 1.47% - --------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $774 $593 $72 Ratio of expenses to average net assets (g)(h) 1.65% 1.65% 1.65% Ratio of net investment income to average net assets (g)(h) 2.76% 2.77% 3.10% Reimbursement (h) 1.48% 2.82% 0.56% Portfolio turnover rate 9%(f) 12%(f) 43% - ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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 Investment Advisor not 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. 185 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA NATIONAL MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) PERIOD ENDED FEBRUARY 29, CLASS C SHARES 2004 (a) - ------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $10.26 - ------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (b) 0.12 Net realized and unrealized gain on investments 0.30 - ------------------------------------------------------------------------- Total from investment operations 0.42 ------------ LESS DISTRIBUTIONS: From net investment income (0.12) From net realized gains (0.08) ------------ Total distributions (0.20) - ------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $10.48 Total return (c)(d)(e) 4.10% - ------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $819 Ratio of expenses to average net assets (f)(g) 1.30% Ratio of net investment income to average net assets (f)(g) 3.09% Reimbursement (g) 1.81% Waiver (g)(h) 0.35% Portfolio turnover rate 9%(e) - ------------------------------------------------------------------------- (a) Class C shares were initially offered on October 13, 2003. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (d) Had the Investment Advisor/Distributor not waived or reimbursed a portion of expenses, total return would have been reduced. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. (h) Amount represents voluntary waivers of service and distribution fees.
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS D SHARES 2004 2003 (a) 2002 (b) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $10.11 $10.28 $10.22 - --------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.16 0.21 0.05 Net realized and unrealized gain (loss) on investments 0.45 (0.16) 0.10 ------------ ------------ ------------ Total from investment operations 0.61 0.05 0.15 - --------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.16) (0.21) (0.05) From net realized gains (0.08) (0.01) (0.04) ------------ ------------ ------------ Total distributions (0.24) (0.22) (0.09) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $10.48 $10.11 $10.28 Total return (d)(e)(f) 6.07% 0.47% 1.51% - --------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $502 $443 $50 Ratio of expenses to average net assets (g)(h) 1.30% 1.30% 1.30% Ratio of net investment income to average net assets (g)(h) 3.11% 3.00% 3.45% Reimbursement (h) 1.34% 2.86% 0.56% Waiver (h)(i) 0.35% 0.35% 0.35% Portfolio turnover rate 9%(f) 12%(f) 43% - ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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 contingent deferred sales charge. (e) Had the Investment 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 service and distribution fees. 186 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA NATIONAL MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED YEAR ENDED DECEMBER 31, FEBRUARY 29, AUGUST 31, ------------------------------------------------- CLASS Z SHARES 2004 2003 (a) 2002 (b) 2001 2000 1999 (C) - ---------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $10.11 $10.28 $9.77 $9.82 $9.28 $10.00 - ---------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income 0.19(d) 0.27(d) 0.41(d) 0.44(e) 0.44 0.34 Net realized and unrealized gain (loss) on investments 0.45 (0.17) 0.55 (0.03)(e) 0.54 (0.72) -------- -------- -------- -------- -------- -------- Total from investment operations 0.64 0.10 0.96 0.41 0.98 (0.38) - ---------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.19) (0.26) (0.41) (0.44) (0.44) (0.34) From net realized gains (0.08) (0.01) (0.04) (0.02) -- -- -------- -------- -------- -------- -------- -------- Total distributions (0.27) (0.27) (0.45) (0.46) (0.44) (0.34) - ---------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $10.48 $10.11 $10.28 $9.77 $9.82 $9.28 Total return (f)(g) 6.41%(h) 1.00%(h) 10.04% 4.16% 10.87% (3.93)%(h) - ---------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $12,993 $14,349 $16,470 $13,769 $10,898 $10,135 Ratio of expenses to average net assets (i) 0.65%(j) 0.65%(j) 0.65% 0.65% 0.65% 0.65%(j) Ratio of net investment income to average net assets (i) 3.79%(j) 3.86%(j) 4.10% 4.44%(e) 4.68% 4.21%(j) Reimbursement 1.31%(j) 1.90%(j) 0.50% 0.66% 0.64% 1.07%(j) Portfolio turnover rate 9%(h) 12%(h) 43% 20% 21% 12%(h) - ----------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were renamed 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 on 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 realized and unrealized loss 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. (f) Total return at net asset value assuming all distributions reinvested. (g) Had the Investment Advisor not 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. 187 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA OREGON MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS A SHARES 2004 2003 (a) 2002 (b) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $12.25 $12.50 $12.52 - --------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.23 0.29 0.08 Net realized and unrealized gain (loss) on investments 0.56 (0.22) 0.07 ------------ ------------ ------------ Total from investment operations 0.79 0.07 0.15 - --------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.24) (0.31) (0.08) From net realized gains (0.14) (0.01) (0.09) ------------ ------------ ------------ Total distributions (0.38) (0.32) (0.17) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $12.66 $12.25 $12.50 Total return (d)(e) 6.49% 0.56% 1.19% - --------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $2,693 $2,138 $477 Ratio of expenses to average net assets (f)(g) 0.95% 1.16% 0.92% Ratio of net investment income to average net assets (f)(g) 3.75% 3.52% 4.11% Portfolio turnover rate 7%(e) 10%(e) 21% - ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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.
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS B SHARES 2004 2003 (a) 2002 (b) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $12.25 $12.50 $12.52 - --------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.18 0.24 0.06 Net realized and unrealized gain (loss) on investments 0.56 (0.23) 0.08 ------------ ------------ ------------ Total from investment operations 0.74 0.01 0.14 - --------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.19) (0.25) (0.07) From net realized gains (0.14) (0.01) (0.09) ------------ ------------ ------------ Total distributions (0.33) (0.26) (0.16) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $12.66 $12.25 $12.50 Total return (d)(e) 6.09% 0.05% 1.10% - --------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $1,379 $999 $373 Ratio of expenses to average net assets (f)(g) 1.71% 1.86% 1.67% Ratio of net investment income to average net assets (f)(g) 2.96% 2.83% 3.36% Portfolio turnover rate 7%(e) 10%(e) 21% - ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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. 188 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA OREGON MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) PERIOD ENDED FEBRUARY 29, CLASS C SHARES 2004 (a) - ------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $12.42 - ------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (b) 0.16 Net realized and unrealized gain on investments 0.38 ------------ Total from investment operations 0.54 - ------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.16) From net realized gains (0.14) ------------ Total distributions (0.30) - ------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $12.66 Total return (c)(d)(e) 4.42% - ------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $63 Ratio of expenses to average net assets (f)(g) 1.31% Ratio of net investment income to average net assets (f)(g) 3.25% Waiver (g)(h) 0.35% Portfolio turnover rate 7%(e) - ------------------------------------------------------------------------- (a) Class C shares were initially offered on October 13, 2003. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (d) Had the Distributor not waived a portion of expenses, total return would have been reduced. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. (h) Amount represents voluntary waivers of service and distribution fees.
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS D SHARES 2004 2003 (a) 2002 (b) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $12.25 $12.50 $12.52 - --------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.21 0.27 0.07 Net realized and unrealized gain (loss) on investments 0.55 (0.23) 0.07 ------------ ------------ ------------ Total from investment operations 0.76 0.04 0.14 - --------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.21) (0.28) (0.07) From net realized gains (0.14) (0.01) (0.09) ------------ ------------ ------------ Total distributions (0.35) (0.29) (0.16) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $12.66 $12.25 $12.50 Total return (d)(e)(f) 6.28% 0.32% 1.14% - --------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $805 $700 $488 Ratio of expenses to average net assets (g)(h) 1.36% 1.43% 1.32% Ratio of net investment income to average net assets (g)(h) 3.35% 3.30% 3.71% Waiver (h)(i) 0.35% 0.35% 0.35% Portfolio turnover rate 7%(f) 10%(f) 21% - ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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 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 service and distribution fees. 189 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA OREGON MUNICIPAL BOND FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED YEAR ENDED DECEMBER 31, FEBRUARY 29, AUGUST 31, --------------------------------------------------------------- CLASS Z SHARES 2004 2003 (a) 2002 (b) 2001 2000 1999 1998 - ---------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $12.25 $12.50 $12.08 $12.13 $11.56 $12.46 $12.47 - ---------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income 0.25(c) 0.34(c) 0.55(c) 0.57(d) 0.58 0.56 0.58 Net realized and unrealized gain (loss) on investments 0.56 (0.23) 0.54 (0.02)(d) 0.58 (0.88) 0.10 --------- --------- --------- --------- --------- --------- --------- Total from investment operations 0.81 0.11 1.09 0.55 1.16 (0.32) 0.68 - ---------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.26) (0.35) (0.55) (0.57) (0.58) (0.56) (0.58) From net realized gains (0.14) (0.01) (0.12) (0.03) (0.01) (0.02) (0.11) --------- --------- --------- --------- --------- --------- --------- Total distributions (0.40) (0.36) (0.67) (0.60) (0.59) (0.58) (0.69) - ---------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $12.66 $12.25 $12.50 $12.08 $12.13 $11.56 $12.46 Total return (e) 6.65%(f) 0.83%(f) 9.24% 4.55% 10.28% (2.65)% 5.58% - ---------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $481,425 $485,427 $508,865 $491,638 $436,544 $409,919 $462,809 Ratio of expenses to average net assets (g) 0.65%(h) 0.68%(h) 0.58% 0.57% 0.58% 0.57% 0.58% Ratio of net investment income to average net assets (g) 4.07%(h) 4.13%(h) 4.45% 4.64%(d) 4.92% 4.64% 4.60% Portfolio turnover rate 7%(f) 10%(f) 21% 14% 22% 28% 17% - ----------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were renamed 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. 190 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA HIGH YIELD FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS A SHARES 2004 2003 (a) 2002 (b) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $8.49 $8.37 $8.17 - --------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.24 0.33 0.09 Net realized and unrealized gain on investments 0.30 0.15 0.20 ------------ ------------ ------------ Total from investment operations 0.54 0.48 0.29 - --------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.26) (0.36) (0.09) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $8.77 $8.49 $8.37 Total return (d)(e) 6.48% 5.81% 3.50% - --------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $288,249 $193,267 $33,992 Ratio of expenses to average net assets (f)(g) 1.00% 1.07% 1.15% Ratio of net investment income to average net assets (f)(g) 5.64% 5.82% 6.46% Portfolio turnover rate 14%(e) 38%(e) 42% - ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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.
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS B SHARES 2004 2003 (a) 2002 (b) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $8.49 $8.37 $8.17 - --------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.21 0.28 0.07 Net realized and unrealized gain on investments 0.30 0.15 0.20 ------------ ------------ ------------ Total from investment operations 0.51 0.43 0.27 - --------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.23) (0.31) (0.07) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $8.77 $8.49 $8.37 Total return (d)(e) 6.06% 5.20% 3.33% - --------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $106,288 $89,950 $16,701 Ratio of expenses to average net assets (f)(g) 1.78% 1.94% 1.90% Ratio of net investment income to average net assets (f)(g) 4.86% 4.93% 5.71% Portfolio turnover rate 14%(e) 38%(e) 42% - ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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. 191 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA HIGH YIELD FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) PERIOD ENDED FEBRUARY 29, CLASS C SHARES 2004 (a) - ------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $8.64 - ------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (b) 0.15 Net realized and unrealized gain on investments 0.16 ------------ Total from investment operations 0.31 - ------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.18) - ------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $8.77 Total return (c)(d)(e) 3.58% - ------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $14,450 Ratio of expenses to average net assets (f)(g) 1.60% Ratio of net investment income to average net assets (f)(g) 4.62% Waiver (g)(h) 0.15% Portfolio turnover rate 14%(e) - ------------------------------------------------------------------------- (a) Class C shares were initially offered on October 13, 2003. Per share data and total return reflect activity from that date. (b) Per share data was calculated using average shares outstanding during the period. (c) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge. (d) Had the Distributor not waived a portion of expenses, total return would have been reduced. (e) Not annualized. (f) The benefits derived from custody credits and directed brokerage arrangements, if applicable, had an impact of less than 0.01%. (g) Annualized. (h) Amount represents voluntary waivers of service and distribution fees.
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED FEBRUARY 29, AUGUST 31, DECEMBER 31, CLASS D SHARES 2004 2003 (a) 2002 (b) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $8.49 $8.37 $8.17 - --------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (c) 0.22 0.29 0.07 Net realized and unrealized gain on investments 0.30 0.15 0.20 ------------ ------------ ------------ Total from investment operations 0.52 0.44 0.27 - --------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.24) (0.32) (0.07) - --------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $8.77 $8.49 $8.37 Total return (d)(e)(f) 6.15% 5.35% 3.35% - --------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $107,351 $103,559 $18,035 Ratio of expenses to average net assets (g)(h) 1.61% 1.73% 1.75% Ratio of net investment income to average net assets (g)(h) 5.04% 5.12% 5.86% Waiver (h)(i) 0.15% 0.15% 0.15% Portfolio turnover rate 14%(f) 38%(f) 42% - ---------------------------------------------------------------------------------------------------------------
(a) The Fund 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 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 service and distribution fees. 192 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA HIGH YIELD FUND FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED YEAR ENDED DECEMBER 31, FEBRUARY 29, AUGUST 31, ---------------------------------------------------------- CLASS Z SHARES 2004 2003 (a) 2002 (b) 2001 2000 1999 1998 - ---------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $8.49 $8.37 $8.87 $8.98 $9.32 $9.84 $10.04 - ---------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income 0.25(c) 0.35(c) 0.57(c) 0.67(d) 0.75 0.74 0.76 Net realized and unrealized gain (loss) on investments 0.30 0.15 (0.48) (0.09)(d) (0.34) (0.51) (0.15) ----------- ----------- --------- --------- -------- -------- -------- Total from investment operations 0.55 0.50 0.09 0.58 0.41 0.23 0.61 - ---------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.27) (0.38) (0.59) (0.69) (0.75) (0.74) (0.76) From net realized gains -- -- -- -- -- (0.01) (0.05) ----------- ----------- --------- --------- -------- -------- -------- Total distributions (0.27) (0.38) (0.59) (0.69) (0.75) (0.75) (0.81) - ---------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $8.77 $8.49 $8.37 $8.87 $8.98 $9.32 $9.84 Total return (e) 6.60%(f) 6.04%(f) 1.17% 6.63% 4.61% 2.38% 6.26% - ---------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $1,361,644 $1,197,340 $702,785 $238,994 $97,575 $71,678 $57,524 Ratio of expenses to average net assets (g) 0.76%(h) 0.82%(h) 0.77% 0.85% 0.93% 0.91% 0.95% Ratio of net investment income to average net assets (g) 5.89%(h) 6.19%(h) 6.84% 7.47%(d) 8.22% 7.71% 7.52% Portfolio turnover rate 14%(f) 38%(f) 42% 69% 50% 49% 79% - ----------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were renamed 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 $0.02, decrease net realized and unrealized 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. 193 FINANCIAL HIGHLIGHTS____________________________________________________________ COLUMBIA DAILY INCOME COMPANY FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
(UNAUDITED) SIX MONTHS ENDED PERIOD ENDED YEAR ENDED DECEMBER 31, FEBRUARY 29, AUGUST 31, ----------------------------------------------------------------- CLASS Z SHARES 2004 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 $1.000 - ---------------------------------------------------------------------------------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS: Net investment income 0.002(c) 0.004(c) 0.012(c) 0.036 0.058 0.046 0.050 - ---------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS: From net investment income (0.002) (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 $1.000 Total return (d) 0.17%(e) 0.40%(e) 1.17% 3.70% 6.00% 4.71% 5.09% - ---------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $749,702 $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) 0.71%(g) 0.69%(g) 0.60% 0.60% 0.60% 0.64% 0.62% Ratio of net investment income to average net assets (f) 0.34%(g) 0.53%(g) 1.16% 3.61% 5.82% 4.61% 4.97% - ----------------------------------------------------------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from December 31 to August 31. (b) On November 1, 2002, the existing Fund shares were renamed 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. 194 SHAREHOLDER MEETING RESULTS_____________________________________________________ COLUMBIA FUNDS On October 7, 2003, a Special Meeting of Shareholders of the Columbia Funds was held to conduct a vote for and against the approval of the Items listed on the Proxy Statement for said meeting. The Items listed on the Proxy Statement were as follows: PROPOSAL 1. NOMINATION AND ELECTION OF THE FOLLOWING DIRECTORS: Douglas A. Hacker, Janet Langford Kelly, Richard W. Lowry, William E. Mayer, Charles R. Nelson, John J. Neuhauser, Joseph R. Palombo, Patrick J. Simpson, Thomas E. Stitzel, Thomas C. Theobald, Anne-Lee Verville and Richard L. Woolworth. PROPOSALS 2., 3., AND 4. To change the names of the following funds:
FOR AGAINST ABSTAIN - ------------------------------------------------------------------------------------------------ Columbia Special Fund, Inc. to Columbia Mid Cap Growth Fund, Inc. 30,220,048.33 802,849.77 1,243,825.21 Columbia Strategic Value Fund, Inc. to Columbia Strategic Investor Fund, Inc. 9,650,683.60 638,426.16 408,254.92 Columbia Small Cap Fund, Inc. to Columbia Small Cap Growth Fund, Inc. 15,474,423.84 96,331.13 299,811.38
195 IMPORTANT INFORMATION ABOUT THIS REPORT_________________________________________ COLUMBIA FUNDS TRANSFER AGENT Columbia Funds Services, Inc. P.O. Box 8081 Boston MA 02266-8081 800.345.6611 DISTRIBUTOR Columbia Funds Distributor, Inc. One Financial Center Boston MA 02111 INVESTMENT ADVISOR Columbia Management Advisors, Inc. 100 Federal Street Boston MA 02111 The funds mail one shareholder report to each shareholder address. If you would like more than one report, please call shareholder services at 800-345-6611 and additional reports will be sent to you. This report has been prepared for shareholders of Columbia Funds. This report may also be used as sales literature when preceded or accompanied by the current prospectus which provides details of sales charges, investment objectives and operating policies of the funds and with the most recent copy of the Columbia Funds Performance Update. A description of the policies and procedures that the funds use to determine how to vote proxies relating to their portfolio securities is available (i) without charge, upon request, by calling 800-345-6611 and (ii) on the Securities and Exchange Commission's website at http://www.sec.gov. 196 This page intentionally left blank. 197 [Image of eDelivery] Help your fund reduce printing and postage costs! Elect to get your shareholder reports by electronic delivery. With Columbia's eDelivery program, you receive an e-mail message when your shareholder report becomes available online. If your fund account is registered with Columbia Funds, you can sign up quickly and easily on our website at www.columbiafunds.com. Please note -- if you own your fund shares through a financial institution, contact the institution to see if it offers electronic delivery. If you own your fund shares through a retirement plan, electronic delivery may not be available to you. COLUMBIA FUNDS SEMIANNUAL REPORT, FEBRUARY 29, 2004 PRSRT STD U.S. Postage PAID Holliston, MA Permit NO. 20 [Eagle head Logo] COLUMBIA FUNDS A Member of Columbia Management Group (C)2004 Columbia Funds Distributor, Inc. One Financial Center, Boston, MA 02111-2621 800.426.3750 www.columbiafunds.com COL-03/317R-0204 (04/04) 04/0855 ITEM 2. CODE OF ETHICS. Not applicable at this time. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable at this time. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable at this time. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. SCHEDULE OF INVESTMENTS Not applicable at this time. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. The registrant has not filed Schedule 14A subsequent to the effective date of that Schedule's Item 7(d)(2)(ii)(G). However, it is the registrant's policy to consider candidates for the Board of Trustees/Directors who are recommend by shareholders. A Fund shareholder who wishes to nominate a candidate to the Board may send information regarding prospective candidates to the Fund's Governance Committee, care of the Fund's Secretary. The information should include evidence of the shareholder's Fund ownership, a full listing of the proposed candidate's education, experience, current employment, date of birth, names and addresses of at least three professional references, information as to whether the candidate is not an "interested person" under the 1940 Act and "independent" under NYSE Listing Standards in relation to the Fund, and such other information as may be helpful to the independent trustees/directors in evaluating the candidate. All satisfactorily completed information packages regarding a candidate will be forwarded to an independent trustee/director for consideration. ITEM 10. CONTROLS AND PROCEDURES. (a) The registrant's principal executive officer and principal financial officer, based on his evaluation of the registrant's disclosure controls and procedures as of a date within 90 days of the filing of this report, has 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 11. EXHIBITS. (a)(1) Code of ethics required to be disclosed under Item 2 of Form N-CSR: Not applicable at this time. (a)(2) Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT. (a)(3) Not applicable. (b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) attached hereto as Exhibit 99.906CERT. 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/ J. Kevin Connaughton ---------------------------------------------- J. Kevin Connaughton, President and Treasurer Date May 6, 2004 ------------------------------------------------------------------- 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/ J. Kevin Connaughton ---------------------------------------------- J. Kevin Connaughton, President and Treasurer Date May 6, 2004 ------------------------------------------------------------------- EX-99.CERT 2 file002.txt CERTIFICATIONS 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: May 6, 2004 /s/ J. Kevin Connaughton ______________________________________ J. Kevin Connaughton, President and Treasurer EX-99.906CERT 3 file003.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 February 29, 2004, 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: May 6, 2004 /s/ J. Kevin Connaughton ___________________________________ J. Kevin Connaughton, President and Treasurer 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-----